4Q16 – solid beat driven by sale of NPLs; strong improvement in NII ...

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 n...