mBank Group strategy
Summary of 2012-2016 strategy
1
2
Continue development
and implementation of
“One Bank” approach
Selectively exploit attractive
opportunities to grow the
business in retail
4
3
Active balance sheet
management and continued
improvement in profitability
Selectively exploit attractive
opportunities to grow the
business in corporate
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mBank Group strategy
1
Continue development and implementation of the “One Bank”
approach
Elements of strategy
1
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Group and client approach integration
▪
New “One network” concept to adjust to the changing customer behaviour and increase network
availability in the medium term, including relocation of some branches to higher customer traffic hubs
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„One network"
Ongoing Group rebranding with an aim to bring all retail operations under the common umbrella
of “One bank” strategy and reorganisation of corporate and investment banking into an integrated
“One” offering
Positioning the mBank name as the generic name for mobile banking
Continuing development of innovative distribution models, including joint venture with Orange
Polska
Maintain market leading positions in quality and innovations, allowing to continue attracting
younger clients and affluent clients
Establish and maintain the position of the most convenient transactional bank in Poland
Exploring bancassurance partnership with a leading international insurer
Rebranding
Has set the standards of
state-of-the-art, comfortable
and friendly retail banking
Award-winning platform for
demanding affluent clients
who appreciate high quality
service and personal advisory
Full breath of highest-quality
services for corporate and
private banking clients
Source: Company information
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mBank Group strategy
2 3
Selectively exploit attractive opportunities to grow
the business in retail and corporate
Elements of strategy
2
Retail banking:
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Delivering premier transactional banking services
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Ensuring a stable and adequate deposit base by leveraging the transactionality and higher sight
deposit volume as a primary banking relationship for the majority of the retail clients
Enhancing client acquisition through the "New mBank" platform
Growing lending business with a more attractive risk-return profile and higher margin
characteristics
Corporate banking:
3
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Offering for SMEs and large corporates
Exploit expected growth in the sector as economy recovers and leverage the existing strong
access to over 17k corporate clients
Continued growth in number of clients across all segments and "individualising" product
offering
Acceleration of lending and integrated corporate & IB offer to small and medium enterprises
New mBank experience
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Peer to peer
payments
Facebook
integration
Gamification
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State-of-the-art
user interface
Personal finance
management
Video banking
Google-like quick
search
2nd generation mobile application—location-based services,
merchant deals, personal financial manager, peer to peer transfers
Mobile payments
Source: Company information
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mBank Group strategy
4 Active balance sheet management and continued improvement
in profitability
Elements of strategy
4
▪
Continued focus on sourcing diversified and attractively priced funding including new area
of covered bond program by mBank Hipoteczny
▪
Improving return on assets through change of lending mix and phase-out of legacy FX mortgage
portfolio
▪
A capital accretive business model with earnings growth outpacing growth in risk weighted assets
allowing for generous dividend distribution (>50%), subject to regulatory approvals
▪
2012–2016 Strategy targets delivered already. Focus on maintaining adequate capitalisation,
strict cost control, balanced business growth and improving returns for shareholders
2012 – 2016 strategy targets, most already achieved
Cost/income ratio
L/D ratio
Gross ROE
Net ROA
CET1
Target
Max. 48%
c. 115%
Min. 15%
Min. 1.4%
11%1
Actual
44.7%
110.8%
17.5%
1.2%
13.2%2
2
Remarks: "actual" denotes H1 2014 level
1 Based on Basel II AIRB approach 2 Based on Basel III fully loaded
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