Poland's mBank profit rises 5.6% in fourth quarter, beating expectations (updated)

Mbank SA

10/02/2026 06:46

Rewrites to combine two banking stories; adds mBank CFO comments on outlook in paragraphs 1, 3, details on interest rates and loans in paragraphs 4-7, ING BSK CFO comment on tax rate in paragraph 8

By Alicja  Surdy, Anna Jaworska-Guidotti and Adrianna Ebert

GDANSK, Poland, Feb 10 (Reuters) - Poland's mBank MBK.WA expects 2026 to be a year of stable financial performance, with a focus on expanding its market share, its finance head said on Tuesday, as Polish lenders brace for further cuts in interest rates.

They had been benefiting from high rates since the autumn of 2023, before the Polish central bank delivered six rate cuts last year, bringing borrowing costs down by 175 basis points to 4%.

“We can offset most of the negative impact and therefore just anticipate a slight reduction of total revenues in 2026 versus 2025,” mBank CFO Pascal Ruhland said. The Polish unit of Germany's Commerzbank CBKG.DE also expects its fee and commission income to remain resilient.

Investors are watching to see if cheaper credit will boost loan growth in Poland, and if larger demand can offset a squeeze in lenders' net interest margins.

ING Bank Slaski INGP.WA, part of Dutch banking group ING INGA.AS, said on Tuesday it expected price pressure in the credit market to spill into the mortgage segment. It also awaits an investment recovery and stronger demand among corporate clients.

mBank said sales of new mortgage loans grew 38% in 2025, while ING Bank Slaski's sales of mortgages jumped 32%.

Both lenders expect the central bank to cut key rates to as low as 3.25% or 3.0% in 2026. This is below the 3.5% level Central Bank Governor Adam Glapinski flagged as a possible main target rate last week.

Polish banks also face tax pressures after President Karol Nawrocki signed in November a bill raising their income tax rate from 19% to 30% in 2026 to support higher defence spending. This rate will fall to 26% in 2027 and 23% in 2028.

In November, mBank said its net result would fall by 800-900 million zlotys in 2026 due to the higher income tax.

Asked what the effective tax rate would be in 2026, ING Bank Slaski CFO Bozena Graczyk said it might rise closer to 40% than 35% across the banking sector.

(Editing by Milla Nissi-Prussak)

((anna.jaworska-guidotti@tr.com ; +48 58 769 65 56))