Bank Handlowy w Warszawie (BHW) Q3 2025 earnings summary

Executive summary

• Q3 2025 net profit was PLN 469 million, down 13.8% year-over-year but up 184% sequentially, mainly due to lower net interest income following interest rate cuts.

• Revenue exceeded PLN 1 billion, with ROE at 17.1%, reflecting strong business activity in institutional and consumer banking.

• The Retail Business was reclassified as held for sale, incurring a net loss of PLN 215.7 million from discontinued operations.

• Dividend payouts totaled PLN 1.75 billion in 2025, with a 75% payout ratio and share buybacks for employee incentives.

• Continued execution of strategic priorities, including digitalization and institutional banking focus.

Financial highlights

• Lending portfolio grew 14% year-over-year; deposits up 16% year-over-year; total assets reached PLN 79.5 billion, up 10% year-over-year.

• Net interest income for Q3 2025 was PLN 516.2 million (continuing operations), down 7.3% year-over-year; net fee and commission income rose 8.5% year-over-year to PLN 105.8 million.

• Cost/income ratio was 23% in institutional banking and 36% overall for Q3 2025.

• Cost of risk was PLN -22 million, reflecting negative write-offs.

• Non-performing loan ratio improved to 2.4%, with coverage ratio at 63.9%.

Outlook and guidance

• Strategic focus remains on institutional banking, digitalization, and supporting energy sector transformation.

• Loan and deposit growth expected to continue, supported by digitalization and AI tool implementation.

• Retail Business transfer to VeloBank expected to complete in mid-2026.

• Polish GDP growth forecasted at 3.3–3.5% for 2025, with inflation near NBP's 2.5% target and further rate cuts anticipated.

• New corporate income tax rate for banks proposed at 30% in 2026, with phased reductions.