ING Bank Slaski (ING) Q2 2025 earnings summary

Executive summary

• Net profit for Q2 2025 reached PLN 1.35 billion, up 18% year-over-year, with H1 2025 profit at PLN 2.149 billion, a 10% increase year-over-year; EPS for H1 at PLN 16.51 versus PLN 15.05.

• Retail customer base grew by nearly 80,000 and corporate by 20,000 in Q2; annual client growth totaled 155,000, with digital and mobile banking activity rising.

• Mortgage loan production surged, with a 21% market share for new loans and 14% for the portfolio; PLN 5 billion in new mortgages issued in Q2.

• The bank received multiple Euromoney awards for best bank, ESG, and digital banking in Poland for 2025.

• Dividend of PLN 3,276 million paid from 2024 profit, equating to PLN 25.18 per share.

Financial highlights

• Net interest income for H1 2025 was PLN 4,384 million, up from PLN 4,204 million year-over-year; net fee and commission income reached PLN 1,163 million.

• Cost of risk dropped 39% year-over-year in Q2, with positive contributions from macroeconomic parameters and sales of irregular liabilities.

• Operating costs fell 10% in Q2, but adjusted for regulatory costs, basic costs rose 6% quarter-over-quarter and 5% year-over-year.

• NPL ratio held at 3.9% for the third consecutive quarter, below sector average; retail NPL at 3.0%, corporate at 4.5%.

• Book value per share rose to PLN 135.40 from PLN 108.94 year-over-year.

Outlook and guidance

• Polish economy forecasted to grow 3.5% in 2025, outperforming regional peers; management expects continued growth in lending and deposits.

• Inflation expected to return to target (2.5–2.8%) and remain stable for the next 18 months.

• Corporate lending expected to rebound, driven by public investment and lower interest rates, though private investment remains subdued.

• Ongoing adaptation to benchmark rate reform, with transition from WIBOR to POLSTR scheduled by end of 2027.

• Management expects continued business growth and stable risk environment, supported by updated macroeconomic forecasts.