Capital and the value creation model

mBank’s financial capital is a pool of funding sourced from the environment: clients, shareholders and bondholders, as well as earnings generated by the Group.

Funds placed with the bank are converted into financial products and services: credits and loans, grants, factoring, leasing, investments, as well as operating activities. The safety of funds is the key aspect of capital management.

We use and manage financial capital in order to address the financial needs of our clients, create new jobs, make a major contribution to local taxes and levies, which drives economic growth.

We work to strengthen the capital position and stability of mBank Group. As a company listed on the Warsaw Stock Exchange (GPW), we make continuous efforts to generate shareholder value.

• Cost efficiency C/I 2018: 42.8%
• mBank Group’s net profit at PLN 1,316.5 million, up by 20.6% year on year
• ROE net at 9.5%
• NIM: 2.58%, +10 basis points year on year

• NPL (non-performing loans) ratio: 4.8%, down year on year (5.2%)
• Total capital ratio: 20.7%
• We paid dividend of PLN 217.9 million, equal to 20% of the 2017 net profit (PLN 5.15 per share)

mBank’s human capital resides in the expertise, attitudes, motivation, experience and competences of our employees who develop a unique corporate culture and win the trust of clients.
We focus on empathy in relations with employees and in communications with clients. With the engagement of our employees, mBank’s communications with the environment are simple, open, friendly and targeted at the needs of our partners. It is part of mBank’s mission: “To help. Not to annoy. To delight. Anywhere.”

• We have appointed an Ethics Officer
• 100% of employees undergo regular performance assessment
• We have drafted a mobbing report template to raise the awareness of employees

• We continue the programme “Our people make the difference. Help us find those special ones”, where the main prize is a development trip
• We monitor the engagement score, which amounted to 54% in 2018

Intellectual capital comprises intangible innovative corporate resources as well as the input of our employees, contributing to our performance and market position. It is a pillar of our current and prospective competitive advantage. It includes intellectual property (patents, copyright, licences, algorithms, digital platforms and applications, other software) and intangible resources (quality standards, brand identity, client communication standards).

Implemented functionalities including:

• Secure quick mobile payments Apple Pay
• Video-onboarding of new retail clients on iOS and Android smartphones
• Scanning money transfer details with a smartphone
• Convenient mobile authorisation for corporate clients in mCompanyNet instead of entering codes

• Process robotisation in partnership with Digital Teammates
• Pilot programme of user behavioural verification in partnership with Centrum Bezpieczeństwa Cyfrowego
• API-based e-commerce lending offer in partnership with Allegro and DotPay

Innovative digital systems, tools, procedures and policies are the key components of mBank’s organisational capital. They ensure effective distribution of knowledge and information within the organisation as well as outside (to and from suppliers).

Our organisation, internal processes, product distribution tools, risk management approach, infrastructure (including IT systems) and retail branch network are developed in line with our innovative digital bank concept. We follow a multi-channel model: we provide products via remote channels including a mobile application, an online platform, a chat, a call centre, as well as a supporting network of modern bank branches.

Distribution channels:

• Increase of the number of branches in Poland to 141 (+5 year on year), increase of the number of mKiosks to 143 (+20)
• Personalised and customised payment cards and credit cards
• Simple language of regulations and agreements (Action – renovation)

mBank’s social capital includes external relations, compliance with common standards, and the trust of our clients. Relations are a key part of our business and a key focus of our work, reinforcing stakeholders’ trust in financial institutions and encouraging clients to adopt new products and services.

The quality of relations and the extent of trust of the general public are closely linked with the bank’s operating results, which is why social capital is our key concern, reflected in our mission and values. Our clients and their needs, emotions and expectations are our primary objective. Social capital is all about trust, a currency as important as money.

We offer products and services to individuals, small and mid-sized enterprises, corporations, as well as public entities including local governments. Our social capital contributes to new business and social projects, investments and infrastructure improvements benefiting everyone. Such projects drive Poland’s economic growth, boosting disposable income of households as well as the standards of living.

• Mortgage loan sales PLN 4.6 billion
• Non-mortgage loan sales PLN 8.9 billion
• Volume of corporate loans up by 16.5% year on year
• Income tax in 2018: PLN 483.9 million
• Bank tax in 2018: PLN 401.8 million
• mBank won the third Trustworthy Brand awards for the second time in the My Company Polska ranking for Corporate Bank Accounts and Corporate Loans

• 107 thousand copies of the book Mathematics Is Everywhere (Matematyka jest wszędzie) distributed in a promotional campaign run by mFoundation and retail branches
• Books were distributed at 140 retail branches and 134 mKiosks. The publication is available for download free of charge at mjakmatematyka.pl
• 185 completed educational projects in the fifth edition of the grant programme mPotęga
• mBank made a historically high single donation to WOŚP at PLN 7 million, matching the donations of its clients
• Additionally, PLN 77,000 was donated to WOŚP thanks to the initiative „The two hearts account”

Natural capital is our direct and indirect environmental impact, both positive and negative.

As we produce no physical goods, our environmental impact is generated by our offices and branches. We consume electricity, heat, water, and office supplies: paper and toner. We use electric equipment, which we have to regularly replace (computers, printers, phones). The extensive IT infrastructure must be cooled, which consumes electricity. Our employees travel for business using the mBank car fleet, generating fuel consumption.

We promote mobility: many banking operations may be completed without visiting a branch, which mitigates potential transportation needs of our clients.

We pursue a renewable energy sources support policy.

• we installed tap water filters in our headquarters in Warsaw and Łódź
• we segregate the waste in Przystanek mBank – our Łódź headquarter
• in order to reduce paper consumption we implemented 1100 new devices for an integrated printing platform MyQ