Bank Handlowy w Warszawie (BHW) investor relations material

Executive summary

• Q3 revenue was PLN 764 million, up 10% QoQ and 3% YoY; consolidated net profit was PLN 288.3 million, down 38.6% YoY.

• ROE was 18.6% and total capital ratio 24.31%; institutional client loans rose 11% YoY and deposits increased 10% YoY.

• Retail banking separation to VeloBank was completed on June 12, shifting the business focus to institutional banking.

Financial highlights

• Net interest income was PLN 479.7 million, down 7.1% YoY; net fee and commission income was PLN 116.4 million, up 10.0% YoY.

• Net other operating result was PLN 167.9 million, up 39.6% YoY, mainly on stronger trading and revaluation income.

• Operating expenses and depreciation rose 46.0% YoY to PLN 247.7 million; operating margin was PLN 516 million, down 10% YoY.

• Continuing-operations profit before tax was PLN 459.7 million versus PLN 521.6 million; continuing-operations net profit was PLN 307.1 million versus PLN 411.4 million.

• 9M revenue was PLN 2,431 million, up 3% YoY; net profit from continuing and discontinued operations was PLN 994.7 million versus PLN 1,069.9 million.

Outlook and guidance

• Management expected interest rates to rise; normalized cost of risk was viewed at ~40 bps versus Q3’s 50 bps.

• Citi forecasts put Polish GDP growth at 3.6% in 2026 and 3.1% in 2027; inflation was expected to stay above the NBP target’s upper limit, with 50–75 bps of tightening forecast over six months.

• IFRS 18 implementation work is ongoing; the standard is expected to change presentation of selected income statement and cash flow items and require management-defined performance measure disclosures.