Bank Polska Kasa Opieki (PEO) investor relations material

Executive summary

• Net profit for H1 2025 reached PLN 3.3 billion, up 13% year-over-year, driven by higher net interest and fee income, and robust loan and deposit growth.

• Lending volumes accelerated, with 6% growth year-over-year and double-digit increases in cash loans and SME/mid-corporate financing.

• All business segments contributed to growth, with strong capital and liquidity positions supporting dividend potential and regulatory compliance.

• Strategic focus remains on organic growth, digitalization, and improving customer experience, especially in retail and SME banking.

• Retail banking is being repositioned to attract younger customers and increase profitability, with notable progress in consumer finance and microfinance.

Financial highlights

• Net profit reached PLN 3.3 billion in H1 2025, up 13% year-over-year; ROE at 20.6%.

• Net interest income for H1 2025 was PLN 6,860 million, up from PLN 6,007 million year-over-year; net fee and commission income up 10% year-over-year.

• Cost-to-income ratio at 34-35.7%, in line with strategic targets; costs grew 5% year-over-year.

• NPL ratio stable at 4.5%, supporting dividend payout targets; cost of risk at 48 bps in Q2 2025.

• Liquidity coverage ratio (LCR) at 232-243% and net stable funding ratio (NSFR) at 172-174% as of June 2025.

Outlook and guidance

• Economic growth expected to accelerate to 4% in 2025, driven by investments and private consumption.

• Credit market growth forecast above 6% for 2025, supported by falling interest rates and increased consumption.

• Anticipate further interest rate cuts by the National Bank of Poland, supporting credit demand.

• Dividend payout ratio guided at 50-75% of net profit, subject to regulatory and portfolio quality criteria.

• The Group expects continued impact from high interest rates and economic slowdown, with increased credit risk factored into impairment estimates.