Bank Handlowy w Warszawie (BHW) investor relations material

Executive summary

• Q3 2025 net profit was PLN 469 million, down 13.8% year-over-year but up 184% sequentially, with ROE at 17.1%.

• Revenue exceeded PLN 1 billion, with a 9% sequential and 7% year-over-year decline.

• Lending portfolio grew 14% year-over-year, deposits up 16% year-over-year, and record high loan volumes in Institutional Banking.

• The Retail Business was reclassified as held for sale, incurring a net loss of PLN 215.7 million from discontinued operations.

• Dividend payouts totaled PLN 1.75 billion in 2025, aligning with the stated dividend policy.

Financial highlights

• Net interest income for Q3 2025 was PLN 733 million, down 4% sequentially and 11% year-over-year.

• Net fee and commission income rose 3% sequentially and 7% year-over-year to PLN 152 million.

• Cost/income ratio for Q3 2025 was 23%, with operating expenses and depreciation at PLN 359 million.

• Total assets as of September 30, 2025, were PLN 79.5 billion, up 9.7% from year-end 2024.

• Institutional banking lending volume up 4% quarter-on-quarter, fourth consecutive quarter of growth.

Outlook and guidance

• Loan and deposit growth expected to continue, supported by digitalization and AI tool implementation.

• The Retail Business transfer to VeloBank is expected to complete in mid-2026, with a focus on institutional banking post-transaction.

• Strategic priorities include financing energy sector transformation and sustainability projects.

• Polish GDP growth forecasted at 3.3–3.5% for 2025, with inflation at 2.9% YoY and further interest rate cuts anticipated.

• A new corporate income tax rate for banks is proposed to rise to 30% in 2026.