Bank Polski (PKO) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached PLN 4.4 billion, up 115% year-over-year, or PLN 6.8 billion excluding extraordinary items, driven by strong core income and despite significant CHF legal risk provisions and credit holiday costs.

• Core revenues grew by 18.1% year-over-year, with net interest income up 19-25.1% and fees and commissions income up 15.5-16%.

• Customer base increased by over 236,000 to 12.0 million; customer financing up 9.3% and savings up 14.4% year-over-year.

• Retail and corporate segments both showed robust growth, supported by digital transformation and product innovation.

• Cost/income ratio improved to 30.5%, reflecting high operating efficiency.

Financial highlights

• Total assets grew 10.1% year-over-year to PLN 507 billion.

• Net interest margin rose by 0.17 percentage points to 4.48%.

• Net profit for H1 2024 was PLN 4.4 billion; adjusted net profit excluding extraordinary items was PLN 6.8 billion.

• ROE reported at 19-20%, or 28.6% excluding extraordinary items.

• Operating expenses increased by 11% year-over-year, mainly due to personnel costs and inflation.

Outlook and guidance

• Expectation of continued dynamic credit volume growth, stable profitability, and core income expansion.

• Strategic focus on digital mortgage expansion, customer-centric innovation, and digitalization.

• Preparing for upcoming regulatory tightening and long-term funding requirements.

• New strategy to be presented in autumn/October 2024.

• Dividend payout for 2023 set at PLN 2.59 per share, with payment in August 2024.