Poland's mBank posts 10% profit growth, meeting expectations

Mbank SA

29/07/2026 06:34

GDANSK, July 29 (Reuters) - Commerzbank's CBKG.DE Polish unit mBank MBK.WA reported a 10.5% rise in its second-quarter profit on Wednesday, in line with market expectations, supported by lower risk provisions, and despite lower net fee and commission income and net interest income.
Polish banks are seeking stronger lending and fee income to bolster profits this year, as lower interest rates and higher taxes temper an earnings boom that made the sector one of the top performers on European stock markets.
The National Bank of Poland left its main interest rate unchanged at 3.75% in July for a fourth straight month, but Governor Adam Glapinski said he could propose a 25-basis-point cut after the summer.
mBank's net profit rose to 1.06 billion zlotys ($279.3 million), versus a company-compiled consensus of 1.03 billion zlotys.
That was supported by lower legal costs related to once popular Swiss-franc mortgage loans, which fell 77%, as a long-running litigation cycle winds down.
Net interest income fell 4% and net fee and commission income fell 2.2% from a year ago.
The bank's loan portfolio grew 13%, with mortgages up 18% and corporate loans up 11%.
It expects 2026 revenue to exceed last year's levels, with balance sheet growth and higher fees offsetting margin pressure.
The European Court of Justice on April 23 barred lenders from charging interest on loan costs.
mBank will assess the risk of cash outflows based on historical court rulings to decide whether to set aside funds following the decision.
($1 = 3.7949 zlotys)

(reporting by Anna Jaworska-Guidotti and Alicja Surdy, Editing by Milla Nissi-Prussak)
((anna.jaworska-guidotti@tr.com ; +48 58 769 65 56)))