Bank Polska Kasa Opieki (PEO) investor relations material

Executive summary

• Net profit for Q1 2026 was PLN 1.232 billion, reflecting strong performance despite higher regulatory costs, tax rate hikes, and lower interest rates, with robust capital position maintained.

• Lending grew 11% year-over-year, with notable increases in both retail and corporate segments, and fee and commission income up 13.3% year-over-year.

• Digitalization accelerated, with active mobile banking users up 8% year-over-year and increased use of remote channels.

• Dividend payout ratio proposed at 75% of net profit, maintaining a leading position in dividend distribution.

• All business segments contributed to growth, with strong asset quality and positive outlook despite geopolitical and regulatory risks.

Financial highlights

• Net profit for Q1 2026 was PLN 1.232 billion, down 26.9% year-over-year, with net interest income down 3% and net fee and commission income up 13.3% year-over-year.

• Operating costs increased by 7.4% year-over-year, mainly due to higher personnel, IT, and regulatory costs.

• Total assets reached PLN 356.3 billion, up 6.9% year-over-year; customer financing portfolio exceeded PLN 208.6 billion, up 10.9% year-over-year.

• Net interest margin was 3.92%, down 37 basis points year-over-year.

• Cost/income ratio at 44.7%, up from 38.5% year-over-year.

Outlook and guidance

• Loan growth expected to accelerate across all major categories, especially corporate and cash loans.

• GDP growth in Poland forecast at 3.8% in 2026, with inflation expected to average 1.9% and interest rates to remain stable.

• Anticipation of up to two MREL benchmark issues in euros in 2026 and first securitization planned for late 2026 or early 2027.

• Regulatory risks remain, especially regarding fiscal consolidation and potential additional taxation of banks.

• Market environment seen as favorable for banks, with high volumes and stable interest rates.