Bank Polski (PKO) Q2 2025 earnings summary

Executive summary

• Net profit for the first half of 2025 rose 16.8% year-over-year to PLN 5.13 billion, with ROE at 19.4% and strong growth in both retail and corporate financing.

• Net interest income increased up to 18.4% year-over-year, while cost/income ratio improved to 31% for the first half.

• Non-performing loans declined to 3.52%, with improvements year-over-year and quarter-to-quarter.

• Comprehensive income rose 29.7% year-over-year, reflecting strong operating performance.

• The group maintained a stable capital position and high liquidity ratios.

Financial highlights

• Net profit reached PLN 5,130 million (+16.8% y/y), with net interest income up to PLN 12,135 million (+18.4% y/y).

• Customer savings increased 13.7% year-on-year, and gross customer financing grew 10.3% year-on-year.

• Retail deposits rose 6.5% year-on-year; mutual funds AUM surged nearly 40% year-on-year.

• Net interest margin was 4.94% in 1H 2025.

• Total assets reached PLN 547 billion (+9.0% y/y).

Outlook and guidance

• Solid economic growth in Poland expected for 2025-2026, with GDP forecasted to grow 3.3% in 2025 and 3.5% in 2026.

• Double-digit growth in home loans and mortgages forecast for 2026.

• Anticipation of further NBP interest rate cuts and continued acceleration in lending activity.

• Net interest income expected to be at least as high as last year, despite interest rate reductions.

• No significant uncertainties identified by management regarding ongoing operations.