Bank Handlowy w Warszawie (BHW) investor relations material

Executive summary

• Net profit for Q1 2026 reached PLN 386 million, with ROE at 19.2%, reflecting strong profitability and capital position, though one source notes an 11.4% YoY decline due to higher taxes and lower net interest income.

• Institutional loan growth hit a record PLN 17.1 billion, leading the sector with five consecutive quarters of increases.

• Consumer Banking demerger is on track for mid-2026, with assets reclassified as held for sale and ongoing stakeholder communication.

• Deposits rose 15% YoY, with increased client engagement in transactional banking and custody.

• Technology investments accelerated to enhance client and relationship manager experience and operational efficiency.

Financial highlights

• Total revenue was PLN 1.2 billion, the second-highest historically, up 12% YoY and 22% QoQ, with Institutional Banking revenue at PLN 971 million.

• Net interest income declined 8% QoQ and 17% YoY, mainly due to a 200 bps policy rate cut, but lending portfolio growth partially offset this.

• Net fee and commission income was PLN 147 million, down 1% QoQ and 3% YoY.

• Operating expenses rose 67% QoQ and 15% YoY, mainly due to regulatory and IT costs.

• Cost/income ratio increased to 34% from 23% YoY; another source notes 46% for Q1 2026.

Outlook and guidance

• No change expected in interest rates by year-end, but market sees potential for stable or higher rates; NII line expected to stabilize.

• Strategic focus remains on defense, energy security, and energy transformation projects for loan growth.

• Continued focus on technology and digital platforms to drive client engagement and efficiency.

• Economic forecasts for Poland indicate GDP growth of 3.6–3.9% in 2026, supporting business expansion.

• The Group’s capital ratios remain above regulatory minimums, supporting future stability.