Bank Handlowy w Warszawie (BHW) Q2 2025 earnings summary

Executive summary

• Announced and signed agreement to exit Consumer/Retail Banking, with transfer to VeloBank planned for mid-2026 pending regulatory approvals; business now classified as discontinued operations under IFRS 5.

• Strategic focus shifted to Institutional Banking, which is now the core business, with strong lending growth and record results in custody activities.

• Net profit for Q2 2025 was PLN 166 million, down 58% year-over-year, but excluding the one-off loss from the Consumer/Retail Banking sale, net profit was PLN 546 million, up 26% quarter-on-quarter.

• Net profit for H1 2025 was PLN 600.5 million, down from PLN 848.2 million in H1 2024, mainly due to a significant loss from discontinued operations.

• Comprehensive income for H1 2025 was PLN 701.6 million, compared to PLN 899.4 million in H1 2024.

Financial highlights

• Q2 2025 revenue reached PLN 1.1 billion, with Institutional Banking revenue up 7% quarter-on-quarter.

• Net interest income for the group was PLN 762 million in Q2 2025, down 5% year-over-year due to interest rate cuts.

• Fee and commission income increased to PLN 256 million in H1 2025 from PLN 238.8 million year-over-year.

• Profit before tax from continuing operations was PLN 1,091.2 million in H1 2025, up from PLN 1,061.9 million in H1 2024.

• Total assets increased to PLN 84.3 billion as of June 30, 2025.

Outlook and guidance

• On track to transfer Consumer/Retail Banking operations by mid-2026, subject to regulatory and operational approvals.

• Continued focus on Institutional Banking growth and market leadership in custody and transaction services.

• After the retail exit, liquidity and capital ratios are expected to remain above regulatory minimums.

• Economic forecasts anticipate Polish GDP growth of 3.7% in 2025, with gradual interest rate cuts expected.