9. Retail Banking

mBank’s Retail Banking segment serves 4,688.6 thousand individual clients and microenterprises in Poland, the Czech Republic and Slovakia online, directly through the call centre, via mobile banking and other state-of-the-art technological solutions, as well as in a network of 256 branches. The Bank offers a broad range of products and services including current and savings accounts, accounts for microenterprises, credit products, deposit products, payment cards, investment products, insurance products, brokerage services, and leasing for microenterprises. In 2013, the Bank launched a modern, user-friendly online platform (New mBank) designed from scratch, which provides more than 200 new functionalities, solutions and improvements.

Summary of the activity of Retail Banking (mBank only)

 

 

thou.

31.12.2012

31.12.2013

31.12.2014

YoY change

Number of retail clients, including:

4,133.9

4,368.4

4,688.6

7.3%

Poland

3,528.1

3,695.3

3,926.5

6.3%

Foreign branches

605.8

673.1

762.1

13.2%

       The Czech Republic

443.2

486.4

534.2

9.8%

       Slovakia

162.6

186.7

227.9

22.1%

PLN M

Loans to retail clients, including:

37,645.4

38,138.7

40,615.0

6.5%

Poland

35,874.9

36,009.6

37,666.1

4.6%

           mortgage loans

29,705.4

29,248.2

29,680.2

1.5%

           non-mortgage loans

6,169.5

6,761.4

7,985.9

18.1%

Foreign branches

1,770.5

2,129.1

2,948.9

38.5%

       The Czech Republic

1,485.9

1,712.0

2,281.4

33.3%

       Slovakia

284.5

417.2

667.5

60.0%

Deposits of retail clients, including:

33,858.9

33,897.9

38,999.4

15.0%

Poland

29,473.7

29,047.7

33,381.0

14.9%

Foreign branches

4,385.2

4,850.2

5,618.5

15.8%

       The Czech Republic

2,970.8

3,076.8

3,788.6

23.1%

       Slovakia

1,414.4

1,773.4

1,829.8

3.2%

Investment funds (Poland)

2,654.5

4,482.8

5,252.1

17.2%

thou.

Credit cards, including

733.9

795.2

864.4

8.7%

Poland

701.9

757.7

817.4

7.9%

Foreign branches

32.0

37.5

47.0

25.3%

Debit cards, including:

5,534.2

6,710.3

7,556.2

12.6%

Poland

4,783.5

5,683.6

6,351.3

11.7%

Foreign branches

750.7

1,026.7

1,204.9

17.4%

 

 

 

 

 

 

 

Distribution network

Advisory Centres within "One Network" Project

-

-

1.0

-

Light branches within "One Network" Project

-

-

2.0

-

mBank (former Multibank)

133.0

133.0

131.0

-

mKiosks (incl. Partner Kiosks)

68.0

68.0

67.0

-

Aspiro Financial Centres

26.0

24.0

23.0

-

Czech Republic & Slovakia

35.0

35.0

35.0

-

 

 

 

 

 

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Data in the table based on internal management system.

Retail Banking segment financial results

The Retail Banking segment generated a profit before tax of PLN 1,063.7 million in 2014, which represents an increase of PLN 105.5 million, i.e., 11.0% year on year.

Retail Banking: decomposition of the profit before tax

 

 

PLN M

2013

2014

Change in PLN m

Change in %

Net interest income

1,506.0

1,685.8

179.8

11.9%

Net fee and commission income

490.8

513.0

22.2

4.5%

Dividend income

0.2

0.1

-0.1

-50.0%

Net trading income

122.9

127.4

4.5

3.7%

Gains less losses from investment securities, investments in subsidiaries and associates

13.5

-0.7

-14.2

-105.2%

Net other operating income

70.3

52.2

-18.1

-25.7%

Total income

2,203.7

2,377.8

174.1

7.9%

Net impairment losses on loans and advances

-297.7

-326.7

-29.0

9.7%

Overhead costs and amortization & depreciation

-947.8

-987.4

-39.6

4.2%

Profit before tax of Retail Banking

958.2

1,063.7

105.5

11.0%

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The profit before tax of Retail Banking in 2014 was driven by the following factors:

  • Increase of total income by PLN 174.1 million, i.e., 7.9% year on year to PLN 2,377.8 million. Net interest income increased by PLN 179.8 million, i.e., 11.9% and net fee and commission income increased by PLN 22.2 million, i.e., 4.5%.
  • Increase of operating expenses (including depreciation and amortisation) by PLN 39.6 million, i.e., 4.2% year on year.
  • Increase of net impairment losses on loans and advances by PLN 29.0 million, i.e., 9.7% year on year.