Other
income
–
calculated
as
gains
or
losses
from
derecognition
of
financial
assets
and
liabilities
not
measured
at
fair
value
through
profit or loss and gains or losses from non-trading equity and debt securities mandatorily measured at fair value through profit or loss.
Total
income
–
calculated
as
the
sum
of
net
interest
income,
net
fee
and
commission
income,
dividend
income,
net
trading
income,
other
income, other operating income and other operating expense.
Overhead costs and depreciation
– calculated as the sum of total overhead costs and depreciation.
Net
impairment
losses
and
fair
value
change
on
loans
and
advances
–
calculated
as
the
sum
of
impairment
or
reversal
of
impairment
on
financial
assets
not
measured
at
fair
value
through
profit
or
loss
and
gains
or
losses
from
non-trading
loans
and
advances
mandatorily measured at fair value through profit or loss.
Net
ROA
–
calculated
by
dividing
net
profit
attributable
to
the
owners
of
mBank
by
the
average
total
assets.
The
average
total
assets
are
calculated
on
the
basis
of
the
balances
as
at
the
end
of
each
month.
Net
profit
attributable
to
the
owners
of
mBank
is
annualised
based
on
the
number
of
days
in
the
analysed
period
(the
annualisation
ratio
is
calculated
as
the
quotient
of
the
number
of
days
in
a
year
and the number of days in the analysed period).
Gross
ROE
–
calculated
by
dividing
profit
before
tax
by
the
average
equity
(net
of
the
year’s
results).
The
average
equity
is
calculated
on
the
basis
of
balances
as
at
the
end
of
each
month.
Profit
before
tax
is
annualised
based
on
the
number
of
days
in
the
analysed
period
(the annualisation ratio is calculated as the quotient of the number of days in a year and the number of days in the analysed period).
Net
ROE
–
calculated
by
dividing
net
profit
attributable
to
the
owners
of
mBank
by
the
average
equity
(net
of
the
year’s
results).
The
average
equity
is
calculated
on
the
basis
of
balances
as
at
the
end
of
each
month.
Net
profit
attributable
to
the
owners
of
mBank
is
annualised
based
on
the
number
of
days
in
the
analysed
period
(the
annualisation
ratio
is
calculated
as
the
quotient
of
the
number
of
days in a year and the number of days in the analysed period).
Cost/Income
ratio
–
calculated
by
dividing
overhead
costs
and
depreciation
by
total
income
(excluding
tax
on
balance
sheet
items
of
the Group).
Net
interest
margin
–
calculated
by
dividing
net
interest
income
by
average
interest
earning
assets.
Interest
earning
assets
are
the
sum
of
cash
and
balances
with
the
Central
Bank,
amounts
due
from
banks,
securities
(in
all
valuation
methods)
and
loans
and
advances
to
clients
(net;
in
all
valuation
methods).
Average
interest
earning
assets
are
calculated
on
the
basis
of
balances
as
at
the
end
of
each
month.
Net
interest
income
is
annualised
based
on
the
number
of
days
in
the
analysed
period
(the
annualisation
ratio
is
calculated
as
the
quotient
of the number of days in a year and the number of days in the analysed period).
The main drivers of the financial results of mBank Group in 2021 included:
■
Increase
in
total
income
,
which
stood
at
PLN
6,111.1
million.
Net
interest
income
remained
its
main
component.
It
reached
PLN
4,104.0
million
and
increased
year
on
year
despite
a
low
interest
rate
environment
prevailing
throughout
most
of
the
year.
Net
fee
and
commission
income
grew
significantly
to PLN 1,890.0 million.
■
Operating
expenses
(including
depreciation)
increased
slightly
to
PLN
2,456.9
million.
In
2021,
employees
received
an
additional
one-off
award
increasing
the
personnel
costs,
while
material
costs
remained
stable.
■
Improved
efficiency
measured
by
the
Cost/Income
ratio,
which
stood
at
40.2%
in
2021
v.
41.1%
in
2020
.
■
Lower
cost
of
risk
at
76
bps,
compared
with
119
bps
in
2020,
when
the
Covid-19
pandemic
led
the
bank to adopt a particularly
conservative
approach to clients’ situation.
■
Increase
in
to
PLN
2,758.1
million
against
PLN
1,021.7
million
in
2020.
the
costs
of
legal
risk
related
to foreign currency loans
■
Continued organic growth and business expansion
as
demonstrated
by:
■
increase
in
the
number
of
corporate
clients
to
31,315
(+2,232
clients
compared
with
the
end of
December
2020);
■
increase
in
non-mortgage
loan
sales
by
39.9%
to
PLN
9,924.1
million
in
2021
against
PLN
7,094.6
million
in the previous year;
■
increase
in
mortgage
loan
sales
to
PLN
12,367.3
million
in
2021
compared
with
PLN
8,985.4
million in
2020
, i.e.+37.6% thanks to an optimised sales process and increased demand.
During
this
time,
the
number
of
retail
clients
dropped
to
5,513,800
(-146,200
compared
with
the
end of December 2020) due to the closure of inactive accounts with overdue fees.
Profit
before
tax
on
core
business
(mBank
Group
excluding
the
FX
Mortgage
Loans
segment)
reached
PLN
2,190.5
million
in
2021,
up
by
35.8%
from
PLN
1,613.2
million
in
2020.
Net
profit
increased
by
44.7%
to
PLN
1,602.7
million
in
the
analysed
period.
This
was
reflected
by
net
ROE,
which
stood
at
11.9%
in
2021 v. 8.1% in 2020.
Capital
ratios
of
mBank
Group
declined
in
2021.
The
consolidated
total
capital
ratio
stood
at
16.58%
at
the
end
of
2021,
compared
with
19.86%
in
2020.
The
Common
Equity
Tier
1
capital
ratio
reached
14.16%
v.
16.99%
at
the
end
of
2020.
The
leverage
ratio
stood
at
6.3%
at
the
end
of
December
2021,
compared
with
7.8% a year before.
