Poland's mBank quarterly profit more than doubles on drop in provisions (updated)

Mbank SA

31/07/2025 07:18

July 31 (Reuters) - Commerzbank's CBKG.DE Polish unit mBank MBK.WA on Thursday reported a 127% rise in second-quarter profit driven by a drop in provisions for the bank's Swiss franc mortgage portfolio and high net interest income.

The bank, in which Commerzbank holds a 69% stake, said its 2025 total revenue will be above the level reported for 2024 and will exceed 12 billion zlotys ($3.21 billion). Previously it expected 2025 revenue to be above 11 billion zlotys, but slightly lower than 12 billion zlotys earned in 2024.

Its net profit more than doubled to 959.4 million zlotys in the quarter, above analysts' average forecast for a profit of 933 million zlotys.

The bank's net interest income (NII), or earnings on loans minus deposit costs, amounted to 2.50 billion zlotys in the second quarter, in line with analysts' average forecast of 2.48 billion zlotys.

Poland's fifth-biggest lender by market capitalization  reiterated that it expects the legal risk costs related to FX mortgages to weigh on its results for the last time in 2025.

It reported a 47.4% year-on-year reduction in FX legal risk costs for the quarter, totalling 543.7 million zlotys, higher than its earlier estimate of around 539.6 million zlotys.

Mortgages in foreign currencies, primarily in Swiss francs, were popular in the 2000s, but have become a burden for Polish banks after Swiss rates and the franc spiked, driving up repayment costs and triggering legal disputes prompting banks to seek settlements.

In the second quarter, the bank reported a 48% rise in sales of mortgage loans quarter-on-quarter, while sales of corporate loans fell 14%.

($1 = 3.7333 zlotys)

 (Reporting by Anna Jaworska-Guidotti and Adrianna Ebert, editing by)

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