Raport Grupy Banku Pekao S.A. za pierwsze półrocze 2025

Bank Pekao S.A. Group – Summary of Financial Results for the First Half of 2025

Bank Pekao S.A. Group reported strong financial results for the first half of 2025, showing growth in key areas and maintaining a stable financial position. Below you will find the most important information from the latest financial statements and management report, along with explanations of their potential impact for investors.

Key Developments and Business Highlights

• Growth in lending: Loans and advances at nominal value reached PLN 192.95bn, up 6.5% year-on-year. Retail loans grew by 4.9%, corporate loans by 7.8%.
• Customer deposits: Amounts due to customers and debt securities issued increased by 8.6% to PLN 284.1bn.
• Investment funds: Assets managed by Pekao TFI S.A. rose by 29.3% to PLN 36.5bn.
• Digitalisation: The number of active mobile banking customers increased by 9% to 3.6 million.
• Cost control: Operating expenses rose by 4.9%, in line with inflation, while income grew faster, improving efficiency.
• Credit quality: Net allowances for expected credit losses decreased by 7% to PLN 384m, with the cost of risk at a low 0.40%.
• Legal risk provisions: The bank increased provisions for legal risk related to CHF mortgage loans by PLN 177m (Group) and PLN 192m (Bank), reflecting a higher forecast of future lawsuits.
• Dividend: A dividend of PLN 18.36 per share was paid in May 2025, with a record date of 7 May and payment on 23 May.
• Capital strength: The total capital ratio remains well above regulatory requirements at 17.2% for the Group and 19.8% for the Bank.

Strategic and Operational Changes

• Management Board: Two new Vice Presidents (Michał Panowicz and Łukasz Januszewski) will join the Management Board from 1 September 2025.
• Group structure: Pekao Direct Sp. z o.o. (call center) was acquired by the Bank in May 2025. FPB-Media Sp. z o.o. was removed from the register in April 2025.
• Strategy 2025-2027: Focus on growth, accessibility, and efficiency, aiming to be among the most profitable and efficient banks in Poland by 2027.
• Product innovation: New digital solutions, payment rings, and expanded mobile banking functionalities were introduced.
• Legal and regulatory: The Bank is involved in several significant court cases and regulatory proceedings, but none threaten its financial liquidity. Provisions have been made for ongoing consumer protection and competition authority investigations.

Risks and Outlook

• Legal risk (CHF loans): The Bank continues to face lawsuits related to foreign currency mortgage loans. Provisions have been increased, and a settlement program is ongoing. The number of cases and the value of claims are rising, but the Bank is actively managing this risk.
• Macroeconomic environment: The Bank expects continued economic growth in Poland, with GDP forecasted to grow around 4% in 2025. Inflation is expected to stabilize, and interest rates may be cut further, which could affect interest income but support loan growth.
• Credit risk: The Bank is monitoring the impact of high interest rates and economic slowdown on credit quality, but current indicators remain stable.
• Liquidity and capital: Liquidity ratios (LCR and NSFR) are at safe levels, and capital buffers are strong.

Dividend and Shareholder Information

• Dividend per share: PLN 18.36 (record date: 7 May 2025, payment: 23 May 2025)
• Share capital: PLN 262,470,034 (unchanged)
• Major shareholders: PZU S.A. (20%), Polski Fundusz Rozwoju S.A. (12.8%), Nationale-Nederlanden OFE (6.4%), Allianz Polska OFE (5.4%)

Explanations of Key Terms

• Net interest income: The difference between interest earned on loans and investments and interest paid on deposits and borrowings.
• Cost/Income ratio: Measures how much the bank spends to earn one unit of income. Lower is better.
• Return on Equity (ROE): Shows how much profit the bank generates from shareholders' equity.
• Provision for legal risk (CHF loans): Money set aside to cover potential losses from lawsuits related to foreign currency mortgage loans.
• Capital ratio: Indicates the bank’s ability to absorb losses. Higher ratios mean greater safety for depositors and investors.
• LCR/NSFR: Liquidity ratios showing the bank’s ability to meet short- and long-term obligations.

Summary for Investors

Bank Pekao S.A. Group delivered solid results in the first half of 2025, with double-digit growth in profit, strong lending and deposit growth, and continued digital transformation. The Bank is well-capitalized and maintains a safe liquidity position. The main risk remains ongoing legal disputes over CHF mortgage loans, but provisions are being regularly updated. The Bank continues to pay attractive dividends and is executing a growth-oriented strategy. Investors should monitor further developments in legal risk, interest rate changes, and the macroeconomic environment.