PKO Bank Polski has reported another good quarter. The results are a solid basis for the implementation of the growth strategy ‘Number 1 and full stop’.

2024.11.07

• PKO Bank Polski, the largest bank in Poland, increased its total assets to PLN 512 billion (+8.2% year-on-year) and the number of customers to 12.1 million at the end of September 2024.

• The PKO Bank Polski Capital Group reports another good quarter of business and financial results. At the end of September 2024, the Group generated PLN 6.9 billion in consolidated net profit. This is over PLN 2 billion (+42.2%) more than in the same period of the previous year. Excluding non-recurring events in the form of provisions for legal risk on CHF loans and the effect of loan holidays, the net result after three quarters of this year would amount to over PLN 10 billion.

• Net profit rose thanks to a 21.5% year-on-year increase in profit from core business activities. This effect was driven by, among other things:

- good credit dynamics in the retail segment,

- growth in net fee and commission income (thanks to high transaction activity in insurance, Brokerage, and TFI, which exceeded PLN 50 billion in assets under management),

- cost discipline (thanks to which the C/I ratio decreased to 29.7%).

• The Bank expanded its innovative product offering with the Digital Mortgage - the first fully digital mortgage process in Poland. One of the first customers obtained a credit decision within one hour.

• In the corporate business, the Bank is preparing for a wave of investments in 2025 and 2026.

• PKO Bank Polski in November 2024 will celebrate the 20th anniversary of its listing on the Warsaw Stock Exchange. It is currently the undisputed number 1 listed company with a capitalisation of PLN 74 billion*.

The net profit of the PKO Bank Polski Group after three quarters of 2024 was PLN 6.9 billion, which is an increase of more than PLN 2 billion compared to the same period of the previous year. After excluding non-recurring events in the form of provisions for legal risk on CHF loans and the effect of loan holidays, the net result after three quarters of this year would have been over PLN 10 billion. The Group's assets at the end of September rose to PLN 512 billion and the number of customers increased to 12.1 million. Net profit grew thanks to a 21.5% year-on-year increase in profit from core business activities. This effect was driven by, among others, good credit growth in the retail segment, an increase in net fee and commission income, and cost discipline. The Bank has expanded its innovative product offering with Digital Mortgage - the first fully digital mortgage process in Poland. In the corporate business, the bank is preparing for a wave of investments in 2025 and 2026.

“The business and financial results provide a solid foundation for the implementation of the PKO Bank Polski Group's growth strategy ‘Number 1 and full stop’. We are strengthening our position as the undisputed leader. I would like to thank the employees of the entire Group for their commitment and our customers for their trust”

said Szymon Midera, President of the Management Board of PKO Bank Polski.

Growth in all business segments

After three quarters, the PKO Bank Polski Group had achieved solid results across all business segments. The Bank recorded a year-on-year growth of 14.2% in retail loans, over 42% in mutual funds, and 7.4% in retail deposits. Additionally, the bank experienced excellent growth in new loan sales, with an increase of 35%.

PKO Bank Polski has developed a range of modern products with Digital Mortgage - the first solution in our country that allows customers to use a completely remote mortgage application process, without having to visit a branch. Since 30 September, selected customers have been able to take advantage of the service. One of the first customers obtained a credit decision in just one hour.

The bank is strengthening its corporate banking as it prepares for a wave of investments in 2025 and 2026. At the end of September, the bank recorded a 1.7% year-on-year increase in corporate lending volumes and a 14% year-on-year increase in leasing and factoring.

Over 20% growth in net interest income, 13.8% growth in net fee and commission income, and a C/I below 30%

Despite the burden of legal risk costs related to Swiss franc mortgage loans and credit holidays, PKO Bank Polski's consolidated net profit for the first nine months of 2024 amounted to PLN 6.9 billion. The return on equity (ROE) was 19.3%, and excluding exceptional items, it was 28.2%. After three quarters, PKO Bank Polski reported a significant increase in core earnings of 21.5%, which included an over 20% increase in net interest income.

The interest margin stood at 4.76%. Net fee and commission income increased by 13.8% to PLN 3,857 million, driven primarily by improved income from the capital market, payment cards, loans, and leasing. The bank's performance was supported by cost discipline and leveraging business scale growth. As a result, the cost/income (C/I) ratio decreased to 29.7%.

Effective risk management and a solid capital position

The NPL ratio, which indicates the quality of the loan portfolio, stood at a level of 3.47% at the end of Q3 2024. The cost of risk was 0.43%, demonstrating further improvement in asset quality.

The Bank also maintained a strong capital position. As of the end of September, the Group's total capital ratio (TCR) was 18.03%, and Tier 1 was 17.35%. In both cases, these figures were well above regulatory minimums.

* as quoted on 7 November 2024

***

PKO Bank Polski is the undisputed leader of the Polish banking sector, and its value at the end of September 2024 will reach PLN 512 billion. The net profit of the PKO Bank Polski Group after three quarters of 2024 amounted to PLN 6.9 billion. Number of shareholders up to 12.1 million. The bank is an independent provider of financial services for all customer segments, achieving control of shares in the deposits, loans and individual investment funds market. Thanks to the use of an interactive tool in this IKO application, which has been activated by customers 8.3 million times, PKO Bank Polski is the most mobile bank in Poland.

Michał Zwoliński

Press Center

prasa@pkobp.pl

+48 22 521 46 36

Czytaj więcej

Financial results

Strong growth in retail business, investments in new products and taking advantage of favourable market conditions resulted in a consolidated profit of PLN 4,4 billion. PKO Bank Polski has reported very good results and summarised its activities in the first half of this year.

2024.08.22

· In the first half of 2024, the PKO Bank Polski Group capitalised on favourable market conditions, generating a ROE of 19,0 per cent and an interest margin of 4,48 per cent while maintaining cost efficiency. The C/I ratio improved further to 30,5 per cent.

Financial results

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

2024.05.09

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 fr...

Financial results

PKO Bank Polski has reported its results for 2023

2024.03.07

Profit of the PKO Bank Polski Group in 2023 amounted to PLN 5 502 million. The Bank increased its income from core business by 18,6 proc. The group's assets reached PLN 502 billion in 2023, the number of customers exceeded 11,9 million and fees and commissions income fro...