Letter
from
the
Chairwoman
of
the
Supervisory
Board
of
mBank
S.A.
to
the
Shareholders
Dear
Shareholders,
In
2021,
many
of
the
challenges
facing
management
boards
and
supervisory
boards
were
similar
to
those
known
from
2020
due
to
the
relentless
COVID-19
pandemic
accompanied
by
lingering
uncertainty.
As
we
know,
the
pandemic
has
radically
accelerated
the
use
of
technology,
changing
the
way
people
work
and
consumers
shop.
In
doing
so,
it
has
contributed
to
the
creation
of
new
businesses
and
the
destruction
of
others.
Never
before
have
innovative
companies
looking
to
adapt
to
a
challenging
new
environment
had
such
easy
access
to
capital.
But
COVID-19
has
also
deepened
the
erosion
of
trust
in
many
institutions
and
exacerbated
polarisation
in
society.
As a result,
relationships
between
the
bank,
its
customers,
and
its
employees,
as
well
as
mutual
expectations,
are
being
redefined.
In
this
challenging
external
environment,
mBank
Group’s
operating
performance
in
2021
was
very
strong.
The
high
growth
of
business
volumes
translated
into
improved
market
shares
in
strategic
segments,
in
particular
mortgage
loans
and
retail
deposits.
It
also
supported
the
growth
of
revenues,
which
increased
by
more
than
4%
year
on
year
to
a
historical
high
of
PLN
6.1
billion.
Thanks
to
the
interest
rate
hikes
initiated
in
October,
net
interest
income
improved.
Net
fee
and
commission
income
remained
on
an
upward
trajectory
and
increased
by
as
much
as
25%.
Combined
with
good
cost
discipline,
these
trends
allowed
us
to
further
improve
efficiency
and
reduce
the
cost/income
ratio
to
40%.
The
cost
of
risk
normalised
following
large
provisions
against
expected
credit
losses
set
up
at
the
start
of
the
pandemic.
Best
proof
of
the
operational
efficiency
of
the
mBank
Group’s
core
business
is
that
its
net
profit
excluding
the
FX
mortgage
segment
was
PLN
1.6
billion,
significantly
higher
than the comparable figure a
year
earlier.
However,
the
decision
to
increase
the
provisions
against
legal
risk
associated
with
the
FX
mortgage
portfolio
to
almost
PLN
2.8
billion
for
the
full
year
2021
resulted
in
a
consolidated
loss
of
PLN 1.2
billion.
Despite
the
negative
result,
the
capital
and
liquidity
ratios
remained
at
secure
levels
while
the
buffer
on
top
of
the
regulatory
requirements
allows
the
bank
to
continue
to
grow
and
implement
its
new
strategy.
The
Supervisory
Board
has
approved
mBank’s
new
strategy
“From
an
icon
of
mobility
to
an
icon
of
possibility”
for
2021-2025.
Its
goals
include
building
on
our
existing
competitive
advantages,
adapting
to
the
new
environment,
and
addressing
weaknesses.
As
a
result,
the
strategy
will
ensure
that
the
bank
remains
one
of
the
top
financial
institutions
in
Poland
while
achieving
an
improved
valuation
and
becoming
even
more
attractive
to
shareholders
and
investors.
The
strategy
will
focus
on
five
areas:
Retail
Banking;
e-commerce;
Corporate
Banking;
Technology,
security
and
data
and
Employees
and
Organisational
Culture.
In
Retail
Banking,
the
bank
wants
to
be
the
customers’
partner
for
life.
We
will
focus
our
efforts
on
a
precise
understanding
of
the
customers’
needs
and
changing
preferences
in
order
to
accurately
reflect
them
in
our
offering.
At
the
same
time,
mBank
will
increase
its
market
share
in
the
e-commerce
segment.
We
already
have
a
strong
position
in
e-commerce
which
provides
a
solid
base
for
further
growth.
This
includes
support
for
online
merchants,
both
in
retail
and
corporate
banking
(the
segment
of
small
and
medium-sized
enterprises).
Corporates
served
by
mBank
will
get
the
best
electronic
and
mobile
banking
on
the
market
based
on
self-service
in
remote
channels.
By 2025,
90%
of
clients
will sign contracts
electronically.
In
order
to
accompany
our
customers
through
the
various
stages
of
their
lives,
we
will
continue
to
promote
digital
customer
service
and
sales.
Therefore,
cyber
security,
new
technologies
and
further
automation
and
digitalisation
remain
key,
combined
with
efficiency
and
prudent
risk
management
in our
business
operations.