Bank Polski (PKO) Q3 2025 earnings summary

Executive summary

• Net profit for the first nine months of 2025 reached PLN 8 billion, up 16.2% year-over-year, including PLN 3.4 billion in CHF legal risk provisions, marking the highest quarterly profit in history.

• Customer base expanded by 324,000 year-over-year to 12.4 million, with a focus on young customers and double-digit growth in customer financing and savings.

• ROE for 9M 2025 stood at 19.8%, with a cost/income ratio of 30.2% and cost of risk at 32 bps.

• The group maintained strong capital and liquidity positions, with a total capital ratio of 17.95% and LCR at 257%.

• The group participated in the 2025 EU-wide stress test, confirming strong capital resilience under adverse scenarios.

Financial highlights

• Net interest income rose 13.9% year-over-year to PLN 18,197 million, with a net interest margin of 4.86% for 9M 2025, declining to 4.70% in Q3.

• Fee and commission income increased 5.4% quarter-over-quarter and 3.6% year-over-year in Q3.

• Total assets reached PLN 555 billion, up 9.4% year-over-year, with customer deposits at PLN 440.5 billion and loans at PLN 315 billion.

• NPL ratio stable at 3.36%–3.46% year-over-year.

• Cost-to-income ratio at 30% after Q3, 30.2% for 9M 2025.

Outlook and guidance

• Economic recovery in Poland is expected to continue, with GDP growth forecast at 3.5%–4% for 2025 and 2026.

• Loan growth is projected to accelerate, with total loans expected to rise 5.4% in 2025 and 6.9% in 2026.

• Strategy remains focused on organic growth, digital transformation, and maintaining high cost efficiency, with a C/I ratio target below 35%.

• The group is monitoring pending legislation on corporate income tax and financial institution tax, which could impact future profitability.

• Lending activity projected to improve across all segments, with ambitions to further increase market share.