Bank Handlowy w Warszawie (BHW) investor relations material

Executive summary

• Achieved record institutional banking loan growth of 22% year-over-year, with trade finance assets up 29% and portfolio growth three times the market average.

• Net income for 2025 was PLN 1.666 billion, with Q4 net profit reaching PLN 596 million, up 27% sequentially and 62% year-over-year.

• Dividend payout reached a record PLN 1.8 billion, yielding 13%, with regulatory approval for a 75% payout ratio.

• Continued digitization and AI tool implementation enhanced productivity and client experience.

• Migration of consumer banking to VeloBank is on track for mid-2026.

Financial highlights

• Q4 revenue was PLN 980 million, with net profit for the quarter at PLN 596 million.

• Total loan book grew 16% year-over-year; total deposits up 13% year-over-year.

• Institutional banking Q4 revenue was PLN 732 million, stable quarter-over-quarter.

• Net interest income in institutional banking was PLN 511 million in Q4, flat versus Q3, but down 7% due to rate cuts.

• Operating expenses and depreciation for Q4 were PLN 329 million, down 8% sequentially and 12% year-over-year.

Outlook and guidance

• Continued focus on institutional banking growth and digital transformation.

• Cost-to-income ratio target remains below 30% in the long term.

• Capital position expected to improve post-merger with VeloBank.

• Expectation of further GDP growth in Poland, with investments and consumption as key drivers.

• Inflation projected to stabilize near 2% in the coming months, with possible slight increase later in the year.