12 million clients and 2 billion zlotys of net profit. PKO Bank Polski announces its results for Q1 2024

2024.05.09

PKO Bank Polski Group has been steadily increasing its business volume. As of March 31st, its assets reached PLN 497 billion (+11,9 per cent year-on-year).
Financing provided to clients – which already amount to 12 million – increased by 8,5 per cent to 276 billion zlotys and acquired savings by 16,2 per cent, amounting to 547 billion zlotys.
Core business income increased by 21,8 per cent in Q1 2024. Net interest income continued to grow by 24 per cent year-on-year, thanks in part to a further improvement in the interest margin to 4,56 per cent. Net fee and commission income recorded an increase of 15,8 per cent year-on-year.
The Bank demonstrated excellent operational efficiency. The cost/income (C/I) ratio was 31,8 per cent in Q1 2024.
PKO Bank Polski Group's net profit in Q1 2024 amounted to 2 billion PLN, despite a significant charge to the result for the legal risk of the Swiss franc mortgage loans in the amount of 1,3 billion PLN (without provision, the result would have been 3,3 billion PLN).
The first quarter profitability, measured by return on equity (ROE) was 17,7 per cent (25,6 per cent – excluding extraordinary events).
The Bank has continued its digital transformation, developing new features for the IKO app, among other things. The number of active IKO apps at the end of Q1 2024 reached 8 million. The number of IKO transactions increased by 25 per cent year-on-year in Q1 and amounted to 239 million.
The Bank also steadily increased the share of remote channels and bots in sales and customer service. The number of calls made by bots in Q1 reached 6,7 million.

The net profit of the PKO Bank Polski Group in the first quarter of 2024 amounted to PLN 2 billion and, excluding the cost of legal risk of the Swiss franc mortgage loans, to PLN 3,3 billion. The Bank steadily increased the scale of its operations and increased income from its core business by almost 22 per cent year-on-year. As a result, the Group's assets increased to PLN 497 billion at the end of the first quarter, and the number of clients reached 12 million. The Bank also demonstrated high cost efficiency. The cost/income (C/I) ratio was 31,8 per cent. The cost of risk ratio reached 47 bps, and NPL stood at 3,34 per cent. The largest bank in Poland continued to set digital trends, developing new features for the IKO app and value-added service offerings, among other things. The number of active IKO apps in the first quarter of 2024 reached 8 million, and the number of calls made by bots reached 6,7 million.

In the first three months of this year, we have recorded very good results. This is primarily due to the brand loyalty of our Clients, who value the commitment of PKO Bank Polski's employees and appreciate our offer of modern banking, leasing, investment, insurance and factoring services. 2 billion zlotys of net profit is a solid foundation for creating a development strategy that aims to set new trends for Polish banking. We will focus, among other things, on ensuring that the client is at the centre of all our activities and has a wide range of services and products at their disposal,

said Szymon Midera, Vice President, who leads the work of PKO Bank Polski's Management Board.

Good results despite legal risk provisions of 1,3 billion zlotys

The net profit of PKO Bank Polski after the first three months of 2024 amounted to 2 billion zlotys. This represents an increase of 40,6 per cent year-on-year, despite the significant burden on the result from the cost of legal risk associated with the Swiss franc mortgage loans. The reported return on equity (ROE) in the first quarter of this year amounted to 17,7 per cent and, excluding extraordinary items, 25,6 per cent. In the first quarter of the year, PKO Bank Polski also recorded a significant increase in income from core activities, close to 22 per cent, and 24 per cent growth in net interest income. The interest margin increased to 4,56 per cent.

High operational efficiency level

The Bank's results were supported by high cost discipline and growth in business scale. The cost/income (C/I) ratio in the first quarter of this year was 31,8 per cent. The bank recorded a decrease in the dynamics of non-regulatory costs to 11,2 per cent year-on-year compared to 19,4 per cent year-on-year in the fourth quarter of the year. The Group's assets reached PLN 497 billion and the number of clients increased to 12 million. PKO Bank Polski strengthened its position as the undisputed market leader by recording a further increase in client savings by more than 16,2 per cent year-on-year to PLN 547 billion. In turn, funding provided to clients reached PLN 276 billion. In the retail segment, the bank recorded an increase in the volume of loans by 13 per cent year-on-year and an increase in deposits by 12,7 per cent year-on-year.

Effective risk management and AI/ML implementations in risk management

The NPL ratio, which describes the quality of the loan portfolio, ranked at a low level of 3,34 per cent at the end of Q1 2024. The cost of risk was 0,47 per cent, reflecting further improvement in asset quality and an increase in provision coverage. The Bank also maintained a safe capital position, with the Tier 1 ratio reaching 17,41 per cent. Additionally, the Bank has developed the use of artificial intelligence (AI) and machine learning (ML) mechanisms in the assessment of credit risk, both in the area of credit decisions and in support of recovery and monitoring of loan portfolios. Currently, 83 per cent of credit decisions for cash loans and 30 per cent for mortgage loans are made based on machine learning.

Leader in mobile transactions

PKO Bank Polski is expanding the use of remote channels for customer service and sales. The number of IKO mobile applications has reached 8 million. The share of remote channels in the sale of consumer loans after the first quarter of this year is 84 per cent. Users who use contactless BLIK in the IKO app made 87,6 million transactions – an increase of 20 per cent compared to the previous quarter. In the first quarter, a total of 239 million transactions were made in IKO, which represents a 25 per cent year-on-year increase. PKO Bank Polski's digital transformation is benefiting both clients and the bank, and new services will be progressively offered through remote channels.

Presentation of 1Q2024 financial results - PDF file - click here

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PKO Bank Polish is the undisputed leader of the Polish banking sector, and the value of its assets at 31 March 2024 reached PLN 497 billion. The net profit of the PKO Bank Polski Group in the first quarter of 2024 amounted to PLN 2 billion. The company serves 12 million customers. It is the primary provider of financial services for all customer segments, achieving the highest market shares in deposits, loans and in the market of investment funds of individuals. Thanks to the development of digital tools, including the IKO application, which has been activated by customers 8 million times, PKO Bank Polish is the most mobile bank in Poland.

Michał Zwoliński

Press Center

prasa@pkobp.pl