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PKO Bank Polski has reported another good quarter. The results are a solid basis for the implementation of the growth strategy ‘Number 1 and full stop’.

07.11.2024
The net profit of the PKO Bank Polski Group after three quarters of 2024 was PLN 6.9 billion, which is an increase of more than PLN 2 billion compared to the same period of the previous year. After excluding non-recurring events in the form of provisions for legal risk on CHF loans and the effect of loan holidays, the net result after three quarters of this year would have been over PLN 10 billion. The Group's assets at the end of September rose to PLN 512 billion and the number of customers increased to 12.1 million. Net profit grew thanks to a 21.5% year-on-year increase in profit from core business activities. This effect was driven by, among others, good credit growth in the retail segment, an increase in net fee and commission income, and cost discipline. The Bank has expanded its innovative product offering with Digital Mortgage - the first fully digital mortgage process in Poland. In the corporate business, the bank is preparing for a wave of investments in 2025 and 2026.

The net profit of the PKO Bank Polski Group after three quarters of 2024 was PLN 6.9 billion, which is an increase of more than PLN 2 billion compared to the same period of the previous year. After excluding non-recurring events in the form of provisions for legal risk on CHF loans and the effect of loan holidays, the net result after three quarters of this year would have been over PLN 10 billion. The Group's assets at the end of September rose to PLN 512 billion and the number of customers increased to 12.1 million. Net profit grew thanks to a 21.5% year-on-year increase in profit from core business activities. This effect was driven by, among others, good credit growth in the retail segment, an increase in net fee and commission income, and cost discipline. The Bank has expanded its innovative product offering with Digital Mortgage - the first fully digital mortgage process in Poland. In the corporate business, the bank is preparing for a wave of investments in 2025 and 2026.

 

“The business and financial results provide a solid foundation for the implementation of the PKO Bank Polski Group's growth strategy ‘Number 1 and full stop’. We are strengthening our position as the undisputed leader. I would like to thank the employees of the entire Group for their commitment and our customers for their trust” 

said Szymon Midera, President of the Management Board of PKO Bank Polski.

Growth in all business segments

After three quarters, the PKO Bank Polski Group had achieved solid results across all business segments. The Bank recorded a year-on-year growth of 14.2% in retail loans, over 42% in mutual funds, and 7.4% in retail deposits. Additionally, the bank experienced excellent growth in new loan sales, with an increase of 35%.
PKO Bank Polski has developed a range of modern products with Digital Mortgage - the first solution in our country that allows customers to use a completely remote mortgage application process, without having to visit a branch. Since 30 September, selected customers have been able to take advantage of the service. One of the first customers obtained a credit decision in just one hour.
The bank is strengthening its corporate banking as it prepares for a wave of investments in 2025 and 2026. At the end of September, the bank recorded a 1.7% year-on-year increase in corporate lending volumes and a 14% year-on-year increase in leasing and factoring.

Over 20% growth in net interest income, 13.8% growth in net fee and commission income, and a C/I below 30%

Despite the burden of legal risk costs related to Swiss franc mortgage loans and credit holidays, PKO Bank Polski's consolidated net profit for the first nine months of 2024 amounted to PLN 6.9 billion. The return on equity (ROE) was 19.3%, and excluding exceptional items, it was 28.2%. After three quarters, PKO Bank Polski reported a significant increase in core earnings of 21.5%, which included an over 20% increase in net interest income.
The interest margin stood at 4.76%. Net fee and commission income increased by 13.8% to PLN 3,857 million, driven primarily by improved income from the capital market, payment cards, loans, and leasing. The bank's performance was supported by cost discipline and leveraging business scale growth. As a result, the cost/income (C/I) ratio decreased to 29.7%.

Effective risk management and a solid capital position

The NPL ratio, which indicates the quality of the loan portfolio, stood at a level of 3.47% at the end of Q3 2024. The cost of risk was 0.43%, demonstrating further improvement in asset quality.
The Bank also maintained a strong capital position. As of the end of September, the Group's total capital ratio (TCR) was 18.03%, and Tier 1 was 17.35%. In both cases, these figures were well above regulatory minimums.

* as quoted on 7 November 2024

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PKO Bank Polski is the undisputed leader of the Polish banking sector, and its value at the end of September 2024 will reach PLN 512 billion. The net profit of the PKO Bank Polski Group after three quarters of 2024 amounted to PLN 6.9 billion. Number of shareholders up to 12.1 million. The bank is an independent provider of financial services for all customer segments, achieving control of shares in the deposits, loans and individual investment funds market. Thanks to the use of an interactive tool in this IKO application, which has been activated by customers 8.3 million times, PKO Bank Polski is the most mobile bank in Poland.

 
Michał Zwoliński
Press Center
prasa@pkobp.pl
+48 22 521 46 36

PKO Bank Polski Press Office : prasa@pkobp.pl