Bank Polska Kasa Opieki (PEO) Strategy Update summary

Strategic vision, context, and market trends

• Strategy aims to return to growth, increase market share, and address permanent market variability, demographic shifts, and evolving customer needs, with a focus on organic expansion and leveraging technological advancements, especially Gen AI.

• Three strategic pillars: Growth, Accessibility, and Efficiency, with a strong emphasis on digital transformation, customer-centricity, and clear 2027 targets.

• Demographic decline in Poland is offset by strong acquisition of young customers and high mobile banking adoption.

• Major technological revolution and large-scale investments in Poland, especially in transport, energy, and logistics, create opportunities in green, infrastructure, and energy sectors.

• Mission centers on lifelong client support, blending tradition with innovation, and vision aims for leadership in intelligent financial technologies and customer experience.

Financial and operational targets

• Targets 18% equity growth, ROE above 18% by 2027, annual loan volume growth of 4.6%, and a cost/income ratio below 35%.

• Dividend payout policy set at 50%-75%, with flexibility for higher payouts if results exceed expectations.

• Plans to increase active customers by 15% (700,000), grow the under-26 customer base by 1.4 million, and reach 4.4 million active mobile customers by 2027.

• Focuses on shifting credit portfolio to higher-margin products, increasing commission income, and portfolio growth in cash, micro, SME, and corporate loans.

• CapEx for technology expected to rise above PLN 500-600 million annually, with investments in AI, cloud, and cybersecurity.

Customer and product strategy

• Emphasizes client-centricity, personalized offers, omnichannel service, and aims to boost NPS and customer loyalty, with top 3 NPS in mass segments.

• Expands bancassurance and standalone insurance products, targeting PLN 1 billion in new premium.

• Plans to enhance SME and microenterprise offerings, especially in leasing and factoring, and deepen integration with PZU Group.

• Seeks leadership in corporate banking, focusing on large transformation projects and syndicated loans, and aims for top 3 in leasing/factoring.

• No immediate plans for foreign expansion, but aims to support clients abroad in the future.