Poland's mBank returns to Q3 profit on lower costs, higher interest income (updated)

Mbank SA

31/10/2024 05:50

(Adds context and details on results and FX loans)
       GDANSK, Oct 31 (Reuters) - Commerzbank's  CBKG.DE  Polish unit mBank
 MBK.WA  on Thursday reported a profit for the third quarter, after a loss last
year, supported by lower costs of legal risk related to foreign currency (FX)
loans and higher net interest income.
    Its net profit was 572.9 million zlotys ($142.8 million) in the quarter,
compared with a loss of 83 million zlotys a year earlier. That exceeded
analysts' expectations for a profit of 476 million zlotys.
    The mid-sized lender saw a 10% reduction in the legal risk costs related to
FX loans, bringing the total to 971 million zlotys in the quarter, slightly
higher than its previous estimate of about 953 million zlotys.
    FX mortgage loans, primarily in Swiss francs, remain a burden for Polish
banks. Initially appealing due to low rates in the 2000s, their repayment costs
have surged due the zloty's depreciation against the franc and Swiss rate hikes,
inciting legal disputes and pressuring banks to seek settlements.
    As of Sept. 30, mBank had concluded 19,519 settlements with clients related
to Swiss franc loans. 
    Its net interest income rose nearly 13% year-on-year to 2.57 billion zlotys,
supported by continued growth in the retail segment, which added 7,400 clients
in the quarter, and corporate segment, which grew by 315 clients.
($1 = 4.0116 zlotys)

 (Reporting by Rafal W. Nowak; editing by Milla Nissi)
 ((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))