Bank Polska Kasa Opieki (PEO) investor relations material

Executive summary

• 9M26 attributable net profit was PLN 4.264bn, down 17.9% YoY, as higher taxes and lower interest income outweighed fee growth and lower CHF mortgage legal-risk costs.

• Lending grew 10% and fee income 11% YoY; capital remained strong, while management reported no major near-term threats and remained on track with strategic goals.

Financial highlights

• 9M26 net interest income was PLN 10.139bn, down 1.5% YoY; net fee and commission income rose 11.0% to PLN 2.514bn.

• Operating income reached PLN 12.842bn, up 0.2% YoY; operating profit was PLN 8.472bn, down 3.1%.

• Operating costs rose 7.5% to PLN 4.370bn and expected-credit-loss allowances increased 23.2% to PLN 769m.

• Income tax expense increased 47.7% to PLN 2.278bn as the corporate income tax rate rose from 19% to 30%; BGF contributions also increased.

• Q3 net profit was PLN 1.517bn versus PLN 1.906bn a year earlier; quarterly net interest income rose 2.8% YoY to PLN 3.525bn.

Outlook and guidance

• GDP growth is forecast at 4.0% in 2026 and 2.9% in 2027; forecasts anticipate three NBP rate hikes to 4.5% in 2027 amid inflation above target.

• Management expects NIM to stabilize and rebound under current conditions; higher rates may support margins, while competition and POLSTR reform remain factors to monitor.

• Corporate loan demand is expected to remain good or improve slightly over the next one to two quarters; cost of risk is expected near 50 bps in coming quarters.

• 2027 targets include ROE above 18%, cost/income below 35%, cost of risk of 65–75 bps and a 50–75% dividend payout; digital services are expected to advance significantly.