Bank Ochrony Srodowiska (BOS) Q1 2025 earnings summary

Executive summary

• Total assets grew to PLN 23.4 billion in Q1 2025, up 11.2% year-over-year and 2.8% from year-end 2024.

• Net profit dropped to PLN 11.8 million from PLN 45.9 million in Q1 2024, down 74.2% year-over-year, mainly due to higher impairment losses and the full annual resolution fund contribution recognized in Q1.

• Green loan sales surged 41.2% year-over-year to PLN 677 million, representing 55% of total loan sales.

• 196 CHF loan settlements were concluded, up 113% sequentially from Q4 2024.

• Interest income rose 2.0% year-over-year to PLN 371 million, while net interest income remained stable at PLN 202.2 million.

Financial highlights

• Net profit: PLN 11.8 million (Q1 2025) vs. PLN 45.9 million (Q1 2024), -74.2% year-over-year.

• Profit before tax fell 75.4% year-over-year to PLN 19 million.

• Net interest income: PLN 202.2 million, down 0.2% year-over-year.

• Net fee and commission income decreased 3.5% year-over-year to PLN 32.7 million due to higher commission expenses.

• Administrative expenses increased 10.8% year-over-year, mainly due to higher employee benefits and material costs.

Outlook and guidance

• Focus remains on acquiring new clients, increasing client satisfaction, and expanding green lending.

• Technological transformation and data analytics are priorities for operational efficiency.

• The Group's performance in 2025 will be influenced by heightened geopolitical risks, trade tensions, and ongoing legal risks related to foreign currency mortgage loans.

• Management aims for over PLN 30 billion in assets, over PLN 1.2 billion net banking income, NPL ratio at 8%, over 50% green loans share, and over 10% ROE by 2027.