Bank Handlowy w Warszawie (BHW) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 reached PLN 1.8 billion, with ROE at 21.1% and ROA at 2.4%, both above sector averages.

• Client activity rebounded, with strong growth in institutional and consumer banking segments; institutional lending up 8% year-over-year and individual client deposits up 5% year-over-year.

• Every quarter in 2024 saw revenue above PLN 1 billion, with Q4 net profit at PLN 368 million.

• Maintained high efficiency and profitability, outperforming sector averages.

Financial highlights

• 4Q'24 revenue reached PLN 1,181 million, up 8% quarter-over-quarter and 20% year-over-year.

• Full-year 2024 net profit at PLN 1.8 billion, down 22% from 2023.

• Institutional banking lending at year-end was PLN 15 billion, up 8% year-over-year; loans grew 7% year-over-year to PLN 21.4 billion.

• Cost/income ratio at 32% for Q4 and 35% for the year; operating expenses up 7% year-over-year, below sector average.

• Fee income in institutional banking up 26% quarter-over-quarter and year-over-year; consumer banking fee income up 29% year-over-year.

Outlook and guidance

• 2025-2027 strategy targets ROE above 15%, ROA above 1.8%, and efficiency ratio below 45%.

• Dividend payout policy aims for at least 75% of net income.

• ESG strategy aims to double sustainable finance portfolio to PLN 2 billion by 2027.

• Expecting stabilization of NII, tied to interest rate forecasts.