4Q16 – solid beat driven by sale of NPLs; strong improvement in NII and F&C
mBank has posted net profit of PLN 293m for 4Q16 (+27% qoq, -5% yoy), 15% above our expectations and 12% ahead of the market consensus. The beat vs. our forecast resulted from: i) lower provision charges due to the sale of NPLs (-72% qoq, -61% yoy); ii) stronger NII (+5% qoq, +11% yoy); iii) a higher F&C result than we had expected (+7% qoq, +6% yoy); iv) lower admin costs (-2% qoq, -25% yoy); and v) a lower effective tax rate than we had expected (25% vs. our assumption of 27%). On a negative note, trading income (i.e. FX result) and other operating income were slightly below our expectations. Overall, we expected the results to be very strong (also inflated by the sale of NPLs), but the scale of the beat was higher than we had expected. We appreciate the significant increase in NII, as well as the further improvement in the F&C result, which was even stronger than at ING.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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