Bank Handlowy w Warszawie (BHW) Q2 2024 earnings summary

Executive summary

• Net profit for Q2 2024 was PLN 394 million, down 13% sequentially and 36% year-over-year, impacted by a PLN 180 million goodwill impairment in consumer banking.

• Revenue for Q2 2024 reached PLN 1,103 million, up 2% sequentially but down 4% year-over-year.

• Return on equity stood at 22.8% for Q2 2024.

• Total assets at end-June 2024 were PLN 73.1 billion, nearly flat year-to-date.

• Dividend of PLN 11.15 per share (PLN 1.45 billion total) was paid, representing 65% of 2023 net profit.

Financial highlights

• Net interest income for Q2 2024 was PLN 805 million, up 1% sequentially but down 3% year-over-year.

• Net fee and commission income reached PLN 148 million in Q2 2024, the highest since Q4 2015.

• Lending decreased by 7% year-over-year, while deposits grew by 5%.

• Cost-to-income ratio was 32% in Q2 2024, down from 44% in Q1 2024.

• Operating margin improved 23% sequentially to PLN 748 million.

Outlook and guidance

• Interest rates are expected to remain supportive of net interest income until anticipated cuts in 2H 2025.

• Management maintains additional provisions for expected credit losses amid ongoing economic uncertainty.

• The bank is monitoring regulatory changes, including WIRON reform and mortgage loan payment holidays.