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mBank SAmBank lender's cost of risk in 2025 could be 70-80 bps
Listed lender mBank group's sensitivity to a 100bp interest rate cut is PLN 670 million (EUR 157 mln), the cost of risk for the whole of 2025 could be 70-80 bps, bank representatives told a conference on Wednesday.
"If there is a 100bp cut in Poland, the sensitivity for the whole group is currently PLN 670 million, but because we have exposure to many currencies, we also work in the Czech Republic, Slovakia, we have many corporate clients who use the euro and the US dollar, then out of this PLN 670 million we have PLN 400 million which is dedicated to the Polish environment only," Pascal Ruhland, deputy CEO for finance, said.
He added that the growing loan portfolio should be one of the factors offsetting the pressure on interest margins.
The bank's cost of risk fell to 53 bps in the first quarter from 57 bps a quarter earlier.
Risk management deputy CEO Marek Lusztyn said that the year-end expected level of cost of risk is 70-80 bps.
"We see a greater stabilisation of the cost of risk, indeed we do not change our forecast related to the cost of risk at the end of 2025 (...) our forecast for the cost of risk in 2025 remains between 70 and 80 bps," Lusztyn said.
Legal risk costs related to foreign currency loans amounted to PLN 661.8 million (EUR 155 mln). In the first quarter of 2025, the number of new CHF loan lawsuits fell to 771 from 877 in the fourth quarter 2024 and 1,922 a year earlier. The number of pending lawsuits is also falling.
The number of CHF loan settlements at the end of March 2025 rose to 26,079 from 22,902 at the end of 2024.
mBank reiterated on Wednesday that its total revenues will exceed PLN 11 billion (EUR 2.58 mln) in 2025, but will be slightly below the level achieved in 2024, and that legal risk costs related to foreign currency loans will be materially charged to earnings for the last time this year.
seb/ han/ nl/