Bank Polski (PKO) Q3 2024 earnings summary

Executive summary

• Net profit for the first nine months of 2024 reached PLN 6.9 billion, up 42.2% year-over-year, with adjusted net profit at PLN 10.4 billion excluding extraordinary items.

• Total assets grew to PLN 512 billion, with customer savings up 14% and customer financing up 9.4% year-over-year.

• Customer base increased by 241,000 year-over-year to 12.1 million, with dynamic growth in both retail and corporate banking.

• Maintained strong market positions in loans and savings, and led the investment fund market for individuals.

• Major events included digital mortgage rollout, CHF mortgage settlements, support for Ukraine, and significant bond issuances.

Financial highlights

• Net interest income rose over 20% year-over-year, with net interest margin up to 4.76%; fee and commission income increased nearly 14%.

• Cost-to-income ratio improved to below 30%, outperforming the strategic target.

• Return on equity (ROE) at 19.3%, or over 28% excluding extraordinary events.

• Cost of risk at 43 bps, NPL ratio at 3.47%, and strong liquidity with LCR at 253%.

• Total capital ratio at 18.03%, Tier 1 at 17.35%, both well above regulatory minimums.

Outlook and guidance

• Expects continued double-digit core income growth, with strong retail and corporate loan growth.

• Macroeconomic forecasts indicate GDP growth of 3.3% in 2024 and 3.8% in 2025, with inflation stabilizing by year-end.

• NBP interest rates expected to remain stable until at least March–July 2025.

• Preparing for new capital requirements and regulatory changes effective from 2025.