Dear Madam/Sir,
I am pleased to present to you the latest integrated report of mBank Group containing both financial data and information on sustainable development.
The events affecting the world, Poland, and consequently, also mBank Group in 2020 were mostly related to the Covid-19 pandemic. The business environment as well as daily lives of millions of people changed in a way which would have been unimaginable only a year ago. In February 2020 we appointed a Crisis Command tasked with mitigating the consequences of the pandemic for the bank and its stakeholders. We are securing all processes to ensure that the company has the capability to operate and provide its services continuously regardless of the circumstances. We also focus on the protection of employees and clients.
At the beginning of the pandemic, we were the first bank in Poland to offer individual, business and corporate clients the possibility of suspending the payment of loan instalments for up to six months and extending the lending period by the suspension period. Another important support measure for enterprises was the aid under the Polish Development Fund’s Anti-Crisis Shield, for which companies could conveniently apply via mBank’s online banking services.
Despite numerous challenges and unfavourable conditions, the income of mBank Group hit a record high in 2020, exceeding PLN 5.8 billion. However, the heated debate about CHF loans which was accompanied by a wave of lawsuits was the key factor impacting on our profit. In consequence, apart from higher risk costs and a significant earnings pressure, our net profit was determined by provisions for legal risk amounting to more than PLN 1 billion. Our full-year net profit thus totalled PLN 104 million, down by nearly 90% on the previous year.
mBank Group’s strategy “Growth Fuelled by our Clients” adopted in December 2019 is based on the acquisition of young people and dynamic companies from developing industries whom we want to accompany through subsequent stages of their lives and development. At the end of 2020, mBank served over 5.6 million retail clients in total. It is also worth noting that mBank’s Retail Banking exceeded the threshold of 1 million clients in the Czech Republic and in Slovakia. At the same time, our Corporate Banking portfolio grew to around 29,100 enterprises. The quick growth of our market share is the best proof that the solutions we offer are convenient, secure, tailored to clients’ needs and popular with our target groups.
For several years, we have been devoting more and more attention to ESG, i.e. environmental, social and governance issues. We want to be the banking sector’s leader in this area. We put special emphasis on our commitments regarding climate and environmental protection. In 2020, we doubled the credit limit for renewable energy financing twice. It now amounts to PLN 4 billion. We also analysed the risk connected with the negative impact of mBank’s operations on the climate and vice versa. Additionally, we were preparing for the issue of green bonds and green covered bonds.
We continue to support the Great Orchestra of Christmas Charity (WOŚP). As its strategic partner and sponsor, we provide financial services during the grand finales. Encouraged by our clients’ generosity, we also donate additional funds to the charity.
Thanks to its grant programmes, contests and numerous actions, mFoundation fosters the mathematics education of children and teenagers.
In 2020, we established the “P for Painting” fund with a view to supporting Polish contemporary art.
We regularly launch campaigns aimed at raising social awareness on cyber security and promoting safe online behaviour.
With the needs of entrepreneurs in mind, we provided companies with a set of tools making it easier to open an online store and start business on the Internet as part of the “Digital Revolutions” initiative.
You can find out more about the above topics as well as other aspects of mBank’s sustainable development in our report. Enjoy the read.
Kind regards,
Cezary Stypułkowski