Bank Polska Kasa Opieki (PEO) investor relations material

Executive summary

• Net profit for H1 2026 was PLN 2,750 million, down 16% year-over-year, impacted by higher corporate income tax, lower market interest rates, and increased contributions to the Bank Guarantee Fund.

• Lending grew by 10% year-over-year, with strong performance in both retail and corporate segments, especially mid, SME, and large corporations.

• Deposits increased by nearly 7%, with retail deposits up 8% and corporate deposits up 11%.

• Digital penetration in retail banking improved, reaching parity with market leaders, and all business segments contributed positively to first-half results.

• Robust capital position with CET1 at 14.8% and total capital adequacy ratio at 16.8%, well above regulatory minimums.

Financial highlights

• Net interest income for H1 2026 was PLN 6,614 million, down 4.2% year-over-year, with net interest margin narrowing by 35–36 basis points to 3.92%.

• Net fee and commission income rose 11% year-over-year to PLN 1,661 million, driven by higher customer activity across all segments.

• Operating costs increased, driven by wage growth, higher IT and strategic project costs, and increased depreciation.

• Cost of risk was 42 basis points YTD, with stable asset quality and NPL ratio at 4.4%.

• Total assets grew 8.3% year-over-year to PLN 367.8 billion; customer deposits up 6.8% year-over-year, and investment fund assets up 25.3%.

Outlook and guidance

• Economic growth in Poland expected to stabilize at 3.5% in 2026, with loan growth forecast at 9.2% and deposit growth at 9.1%.

• Inflation projected to remain in the 2.5–3.0% range, with monetary easing likely in 2027.

• Bank targets ROE above 18% and cost/income ratio below 35% by 2027, with a dividend payout ratio of 50–75% of net profit.

• No material further decreases in NIM anticipated, with interest rate cuts already factored into current levels.

• Corporate lending dynamics expected to remain strong in upcoming quarters.