Poland's mBank tops profit expectations in first quarter

Mbank SA

30/04/2026 05:37

GDANSK, April 30 (Reuters) - Commerzbank's CBKG.DE Polish unit mBank MBK.WA reported a 35% rise in its first-quarter profit on Thursday, beating market expectations, driven by strong net fee and commission income and despite lower net interest income and higher operating costs.

The bank, in which Commerzbank holds a 69% stake, said in a presentation it expected total annual revenue to be broadly in line with 2025 despite lower interest rates, as margin pressure should be offset by balance sheet expansion and rising net fees.

Net profit rose to 953 million zlotys ($261 million), versus analysts' forecast of 871 million zlotys in a company-compiled consensus, also supported by lower legal provisions

Net interest income fell 3.2% to 2.39 billion zlotys, missing market expectations of 2.41 billion zlotys

Lending margins across Poland’s banking sector are pressured by lower interest rates, which are set to weigh on net interest income through 2026

In March, Poland’s Monetary Policy Council cut the benchmark rate to 3.75%; borrowing costs are down by two percentage points since May last year

Net fee and commission income rose 14.5% to 576 million zlotys, driven by higher fees from brokerage activity and issuance of debt securities

The bank's loan portfolio grew 10.8% from a year ago, led by 15.6% growth in mortgages and a rebound of corporate exposures

Polish banks are adjusting to a corporate income tax rate of 30%, up from 19%, introduced from 2026 to help finance defence spending

Provisions for legal risk tied to Swiss-franc mortgages fell 89% to 73 million zlotys, in line with mBank's earlier estimate

mBank could face a cash buyout of minority shareholders by UniCredit if the Italian lender secures control of Commerzbank through its all-share offer

($1 = 3.6501 zlotys)

(reporting by Anna Jaworska-Guidotti, Editing by Milla Nissi-Prussak)

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