Bank Polska Kasa Opieki (PEO) investor relations material

Macroeconomic and sector landscape

• Poland remains one of the fastest-growing economies in the region, with robust GDP per capita growth and a diversified export structure, supporting a stable macroeconomic environment for banking operations.

• Public debt and private sector credit levels remain moderate, and the economy is increasingly balanced with a stable current account and improving international investment position.

• The banking sector is profitable, technologically advanced, well-capitalized, and cost-efficient, with strict regulatory oversight and ongoing consolidation among top banks.

Regulatory and competitive environment

• Regulatory requirements include capital buffers, MREL, and increasing CIT rates, with dividend payouts tied to capital and asset quality criteria.

• The sector faces significant regulatory costs, including banking taxes and contributions to guarantee and resolution funds.

• Top five banks hold 60% of sector assets, with Bank Pekao being the second largest by assets and a leader in retail and corporate banking.

Strategic positioning and business model

• Focus on sustainable growth, digital transformation, and operational efficiency, aiming for leadership in profitability and cost efficiency.

• Diversified business model with 44% retail and 56% corporate loans, strong capital and liquidity positions, and low exposure to CHF mortgages and cyclical sectors.

• Strategic priorities include expanding in SME and mid-corporate segments, leveraging digital channels, and growing bancassurance and leasing/factoring businesses.