Mbank proposes to forgo dividend from 2025 profit
TL;DR
Mbank will not pay dividends from 2025 profits to focus on financial stability and growth, reinvesting earnings to strengthen its balance sheet and support long-term targets like a 22% RoTE by 2030.
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Mbank proposes to forgo dividend from 2025 profit
mBank Announces Forgone Dividend for 2025 Amid Strategic Restructuring
Polish financial services group mBank has confirmed it will not distribute dividends from profits generated in 2025, aligning with its ongoing strategic focus on financial stability and long-term growth. This decision follows the bank's broader strategy to reinvest earnings into strengthening its balance sheet and expanding market share, particularly in retail and corporate banking segments.
The move comes as mBank continues to navigate challenges linked to foreign currency mortgage liabilities, a legacy issue from the 2000s that has required significant provisions. The bank previously stated it does not anticipate further material impacts from these risks beyond 2026. By retaining 2025 profits, mBank aims to bolster capital reserves and support its targeted return on tangible equity (RoTE) of over 22% for the 2026–2030 period.
Under its updated dividend policy, mBank plans to allocate 30% of 2026 profits to shareholder distributions, with a gradual increase to 75% of 2030 profits. This phased approach reflects the bank's commitment to balancing shareholder returns with prudential risk management. Key performance metrics, including a cost-to-income ratio of 35% or lower and a risk cost of approximately 0.8%, remain central to its strategic framework.
The decision to suspend 2025 dividends also underscores mBank's prioritization of operational resilience. Recent quarterly reports highlight dynamic growth in digital banking and loan portfolios, though profitability remains tied to sustained cost discipline and market share expansion.
Investors are advised to monitor mBank's progress toward its 2030 targets, including achieving over 10% market share in retail and corporate client loans and deposits. The bank's updated strategy signals confidence in long-term profitability while acknowledging the need for caution in the near term.
This article relies on publicly available information as of February 26, 2026.
