mBank S.A. Unsponsored ADR

Strong, profitable growth (key “good”): After 9M’26, mBank reported record earnings—net profit ~PLN 3.1bn (+24% YoY), the best 9 months in its history. The company emphasized *profitability over volume*: loans +18% YoY to PLN 164bn (outpacing market) and deposits +19% YoY to PLN 255bn (driven by current & savings), supporting balanced funding and further market share gains across core products.

Q3 performance beats on income + efficiency (key “good”): In Q3, total income +~4% QoQ to PLN 3.25bn, including net interest income +9% QoQ to PLN 2.7bn (record). Net interest margin recovered +10bp to 3.57% after a 2Q low, and net fee/commission income hit a quarterly record PLN 594m (+4.4% QoQ). Cost discipline: cost-to-income improved to 29.1% (Q3). Q3 net profit: PLN 1.1bn (record).

Guidance maintained; NII resilience but watch costs of risk (forecast/expectations): Full-year outlook reiterated: - Revenues ~2% above 2025 - Cost-to-income <33% - Cost of risk ~55bp (through-the-cycle view) - Volumes expected to grow faster than the market Notable driver in Q3: loan loss provisions increased to PLN 261m (67bp cost of risk) mainly due to one defaulted corporate exposure (construction sector)—management stressed no broad deterioration, and retail risk stays very healthy (retail cost of risk 50bp).