Bank Polska Kasa Opieki (PEO) Q3 2026 earnings summary

Executive summary

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

• Operating income reached PLN 12.842bn, up 0.2% YoY; lending and fee income grew, while capital remained strong.

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 costs rose 7.5% to PLN 4.370bn; 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%.

• 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.

• 9M26 CHF mortgage legal-risk costs fell to PLN 80m from PLN 376m in 9M25.

Outlook and guidance

• GDP growth is forecast at 4.0% in 2026 and 2.9% in 2027; inflation is expected to remain above the NBP target tolerance range through end-2027.

• Forecasts anticipate cumulative 75 bps of rate hikes at the turn of 2026–27, taking the reference rate to 4.5% in 2027.

• Higher rates may support NIM, while stronger corporate lending demand could intensify competition and narrow lending margins.

• 2027 strategy targets include ROE above 18%, cost/income below 35%, cost of risk of 65–75 bps and a 50–75% dividend payout ratio.