ING Bank Slaski (ING) Q1 2025 earnings summary

Executive summary

• Q1 2025 net profit reached PLN 1,014 million, up 2–2.1% year-over-year, with a focus on stability, private banking, and digital growth.

• Total assets increased to PLN 269,167 million as of March 31, 2025, and the bank remains the 4th largest in Poland by assets.

• The bank acquired 89,000 new retail and 16,000 new corporate clients in Q1 2025, with digital engagement and BLIK transactions rising.

• The Management Board was appointed for a new term, with Michał Bolesławski as President.

• A 100-day plan is underway to refine strategy, with a new private banking division launched.

Financial highlights

• Net interest income was PLN 2,211 million (+2–2.3% y/y, -2% q/q); net fee and commission income reached PLN 579 million (+1% y/y, +2% q/q).

• Gross profit stood at PLN 1,312 million (+2% y/y); cost/income ratio at 47.9–48%.

• ROE (adjusted for MCFH) was 20.2%; consolidated total capital ratio at 16.14%.

• Risk costs were PLN 209 million (+21% q/q, +6% y/y); cost of risk margin at 0.63%.

• Regulatory costs, including restructuring and KNF fees, significantly impacted results.

Outlook and guidance

• Strategy for the coming years will be communicated after the 100-day review, with precise financial objectives.

• Bank economists forecast Poland’s GDP growth near 3% in 2025, inflation to fall to 3%, and NBP rate cuts totaling 1.25 percentage points.

• Sensitivity to a 100 basis point interest rate drop estimated at PLN 130 million impact in year one.

• The bank targets further digitalisation (Digilndex at 88.4%, aiming for 90% in 2025) and continued growth in retail and corporate segments.

• Dividend payout policy remains up to 50% of yearly net profit, with flexibility for higher payouts if justified.