Bank Ochrony Srodowiska (BOS) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 was PLN 50.2 million, down from PLN 55.8 million in H1 2023, impacted by legal risk charges and one-off provisions.

• Total comprehensive income for H1 2024 was PLN 47.1 million, compared to PLN 109.4 million in H1 2023.

• Legal risk charges related to foreign currency mortgage loans totaled PLN 107.5 million, lower than PLN 161.8 million in H1 2023.

• No dividend was paid for H1 2024; 2023 profit was allocated to statutory reserves.

• The Group maintained capital adequacy and liquidity ratios above regulatory requirements.

Financial highlights

• Net interest income reached PLN 402.4 million in H1 2024, down from PLN 410.9 million in H1 2023.

• Net fee and commission income was PLN 63.7 million, nearly flat year-over-year.

• Administrative expenses rose to PLN 291.0 million from PLN 255.5 million year-over-year.

• Share of green loans in the portfolio increased to 49.7% in H1 2024 from 45.2% in H1 2023.

• Interest margin was 3.56% in Q2 2024, showing recovery since Q4 2021.

Outlook and guidance

• The Group continues to implement its Recovery Plan, with all key indicators at safe levels.

• No circumstances identified that threaten going concern for at least 12 months post-reporting date.

• Funding costs decreased as deposit interest rates were adjusted to market conditions.

• Lending income declined due to lower market interest rates and portfolio structure changes.