About the company:
- the longest track record of issuing covered bonds on the Polish capital market
- improving stability and diversification of mBank Group funding through raising long-term funding in form of mortgage covered bonds
- financing commercial investments on the real property market, lending to the public sector entities in the area of municipal investments and real properties of local government units
- analysis and advisory services addressed to investors and entities active on the commercial real property market
- rating of Fitch Ratings: long-term „BBB”, short-term „F2”. Rating of mortgage covered bonds „A”
In 2018, mBank Hipoteczny (mBH) placed 3 issues of mortgage covered bonds in the total nominal amount of PLN 1.6 billion. Details concerning covered bonds issue are described in section mBank Group funding.
Covered bonds issued in 2013-2018 (PLN million)
The gross loan portfolio of mBank Hipoteczny totalled PLN 11.3 billion at the end of 2018 (i.e. +3.8% in comparison with 2017). That change was driven mainly by a systematic rise in the commercial portfolio (+12.3% year on year). Over the year, sale in this segment amounted to PLN 1.8 billion. Despite transfer of retail loans sale to mBank, in 2018 this portfolio increased by 5.7% at mBH. Retail portfolio in 2018 benefited from pooling transactions which amounted to PLN 603 million over the year.
Despite the additional burden imposed on the bank in the form of a banking tax (PLN 27.6 million), in 2018 the company reported a 74.5% increase year on year in the standalone profit before tax. The profit before tax amounted to PLN 60.7 million at the end of 2018, compared with PLN 34.8 million in 2017.
Compared with the previous year, mBH’s profit was driven mainly by improvement in the net interest income (+11.7%) linked to substantial early repayments in the corporate portfolio (higher by 27.6% than year before). Moreover, in 2018 mBH recorded lower fee and commission costs compared to the previous year, thanks to, among other reasons, transfer of retail loans sale to mBank. In addition, loan loss provisions remained at the similar level to the one observed in 2017 while costs of mBH’s functioning decreased by 6.2% year on year.