ING Bank Slaski (ING) Q4 2024 earnings summary

Executive summary

• Net profit for Q4 2024 reached PLN 1,309 million, up 19% sequentially and 3% year-over-year, exceeding market expectations due to lower cost of risk.

• Full-year net profit was PLN 4,369 million, down 1.6% year-over-year, with gross loans up 5.8% and deposits up 7.9%.

• The board recommends a 75% dividend payout for 2024, enabled by a strong capital surplus and regulatory compliance.

• The bank attracted 74,000 new retail and 14,000 new corporate clients in Q4 2024, with strong digital engagement and transaction growth.

Financial highlights

• Net interest income for 2024 was PLN 8,725 million (+6.8% y/y); Q4 net interest income was PLN 2,261 million (+4% y/y).

• Net commission income for 2024 was PLN 2,294 million (+6% y/y), with strong growth in payment cards and brokerage.

• Operating expenses rose 8% to PLN 4,698 million, driven by higher legal, advisory, IT, and marketing costs.

• Cost of risk dropped sharply in Q4 to PLN 173 million, but full-year risk costs surged 69% to PLN 1,036 million.

• Loan-to-deposit ratio at year-end was 75.8%, above sector average.

Outlook and guidance

• Optimism for 2025, with GDP growth expected above 3%, driven by domestic demand and public investment.

• EU financing cycle and Polish Recovery Plan grants are expected to accelerate investment and loan demand in 2025.

• Interest rates may decrease by 50-100 basis points in the second half of 2025, but NBP rates to remain restrictive in the near term.

• Regulatory costs, including DGS, will increase in 2025, impacting total expenses.

• Final audited results will be published on 7 March 2025.