mBank Czech Republic - Takeaways from 3Q2023 Results

Loans & Deposits

Based on the numbers reported by its Poland's owner, mBank Czech Republic's customer loans decreased 1.3% qoq and 5.5% yoy in the third quarter of 2023 while customer deposit growth amounted to 0.8% qoq and 3.0% yoy. That’s compared to average of 14.9% and 11.1% average annual growth seen in the last three years.

At the end of third quarter of 2023, mBank Czech Republic's loans accounted for 54.5% of total deposits and 54.5% of total assets.

Momentum in lending remains negative. Mortgage loans fell 2.33% qoq and were 9.16% down yoy while consumer loans increased 1.38% qoq and 5.71% yoy. Mortgages represented 72.2% of the mBank Czech Republic's loan book with consumer loans the remainder.

On the other hand, deposits (household only) continued to increase by some 0.80% when compared to previous quarter and by 3.02% yoy. 

We estimate that mBank Czech Republic has lost 0.096 pp market share in the last twelve months in terms of loans (holding 0.822% of the market at the end of 3Q2023). On the funding side, the bank seems to be losing slightly as well holding 0.932% of the deposit market at the end of September 2023:

Conclusion

Based on the few numbers provided by Poland's mBank, we think, calculate and estimate that:

 - mBank Czech Republic gained further 25,000 customers, or 3.5% since the beginning of the year. At the end of September, it had 757,701 clients (and 710,436 accounts).

 - average balance remained stable at around CZK 91,000 per account meaning the Bank has been losing market share slightly (0.93%)

- market share in mortgages fell further to 1.50% while Bank's position seems stable in consumer loans at around 2.0% of the market