Bank Polska Kasa Opieki (PEO) Corporate presentation summary

Macroeconomic and sector landscape

• Poland is among the fastest-growing economies in the region, with robust GDP per capita growth and relatively low public debt levels compared to the EU average.

• The economy is well-diversified, with exports spanning machinery, electronics, vehicles, and various industrial and consumer goods.

• The banking sector is profitable, technologically advanced, well-capitalized, and resilient, with strict regulatory oversight and high consolidation among top banks.

• Credit growth potential remains high, supported by improving economic conditions and rising private consumption.

• Regulatory costs are significant, with increasing contributions to the Bank Guarantee Fund and expectations of higher capital buffers.

Competitive position and business model

• Holds the second-largest asset base in Poland and a leading position in both retail and corporate banking, with a diversified loan portfolio and strong digital presence.

• Retail banking maintains a top-three market share in deposits and loans, with strategic focus on digitalization and multi-product relationships.

• Corporate banking leads in large corporate segments and targets expansion in SME and MID markets, emphasizing cross-selling and advisory services.

• Loan portfolio is concentrated in defensive sectors, with low exposure to high-risk segments and minimal CHF mortgage exposure.

Financial performance and capital position

• Recurring net profit and operating income have shown strong, consistent growth, with high cost efficiency (C/I at 34.7%) and sector-leading risk management.

• Maintains robust capital and liquidity positions, with TCR at 16.9%, Tier 1 at 15.6%, LCR at 250%, and NSFR at 174%.

• Dividend policy targets 50-75% payout of profits, supported by strong capital buffers and effective RWA management.

• Recognized as the most resilient bank in the 2023 EBA EU-wide stress tests, maintaining capital ratios above regulatory requirements even under stress scenarios.