In 2018, the Polish economy saw numerous phenomena that contributed to development of the banking sector and stimulated lending.
private consumption propelled by favourable situation on the labour market (record-low unemployment), fast-rising household income and unflinching consumer optimism
active real estate market
low interest rates – NBP reference rate not changed since 2015 – cheaper financing of the bank on the market and good performance of loans
heavy burdens imposed on the banking sector, such as the tax on certain financial institutions (so called “banking tax”) and the contribution to the Bank Guarantee Fund (BFG), which cannot be recognised as tax deductible expenses
new regulations (e.g. MIFID 2)
unfavourable conditions on the capital market
increasing capital buffers and curbs on dividend payment unfavourable for profitability ratios
negative impact of low interest rates on net interest income
Thanks to its unique business model and consistently implemented strategy, mBank Group developed dynamically in 2018. Total income exceeded PLN 5 billion, while recurring income reached an all-time high. Net profit of mBank Group hit record and stood at PLN 1,316.5 million.