Bank Polska Kasa Opieki (PEO) Q2 2025 earnings summary

Executive summary

• Net profit for H1 2025 reached PLN 3,288 million, up 13% year-over-year, driven by higher net interest and fee income, robust loan and deposit growth, and strong capital and liquidity positions.

• All business segments contributed to growth, with particular strength in retail, SME, and corporate lending, and a stable position in trusteeship services.

• Digital innovation and customer acquisition accelerated, with 70,000–80,000 new active mobile banking users in H1 2025.

• Strategic focus remains on organic growth, digital channel expansion, and operational efficiency, with ongoing investments in IT and process improvements.

• Dividend of PLN 4,819 million was paid in May 2025, with a dividend per share of PLN 18.36.

Financial highlights

• Recurring net profit up 13% year-over-year to PLN 3.3 billion–PLN 4.1 billion; one-off regulatory burdens reduced reported net profit.

• Net interest income for H1 2025 was PLN 6,860 million, up from PLN 6,007 million year-over-year; net fee and commission income up 10% year-over-year to PLN 1,497 million.

• Lending volumes accelerated, with 6% growth in Q2 versus 4% in Q1; mid and SME lending up 13%, large corporate loans up 10% year-over-year.

• Investment funds up 29% year-over-year, with record net sales of PLN 10 billion.

• Deposit base grew 8–9%, with liquidity ratios (LCR) well above 200.

Outlook and guidance

• Management expects continued lending growth, especially in consumer finance and microfinance, with optimism for H2 2025.

• Economic forecasts indicate GDP growth of 4% for 2025, with further investment-driven expansion and potential for two interest rate cuts by the National Bank of Poland.

• Mortgage and consumer credit volumes are expected to revive, supported by improved consumer sentiment and lower inflation.

• Dividend payout ratio guided at 50-75% of net profit, subject to regulatory and portfolio quality criteria.

• The Group expects continued impact from high interest rates and economic slowdown, with increased credit risk factored into impairment estimates.