Bank Polska Kasa Opieki (PEO) Q4 2025 earnings summary

Executive summary

• Record 2025 net profit of PLN 7.015 billion, up 10% y/y, driven by loan growth of 8% and commission income growth of 11%.

• Strong profitability, with ROE of 21.4%, and robust capital: Tier 1 at 15.0% and total capital adequacy ratio at 16.4%.

• All business segments contributed, with continued digital expansion and customer acquisition.

Financial highlights

• Total customer financing portfolio exceeded PLN 200 billion (+8% y/y); assets reached PLN 352 billion (+5% y/y).

• Net interest income grew 6% y/y and net fee and commission income 11% y/y; NIM was 4.19% and remained stable despite a 7% decline in three-month WIBOR.

• Deposits increased 4% y/y; mutual fund assets rose 28% and own issues 37%.

• Cost/income ratio, including BGF, was 34.5%; ROE was 21.4%.

• Cost of risk was 39 bps and NPL ratio 4.4%.

Outlook and guidance

• Polish GDP growth is forecast at 4.0% in 2026, with inflation at 1.9% and further monetary easing anticipated.

• Loan growth forecast at 9.9% y/y in 2026, including 11.3% growth in corporate loans.

• Dividend payout targeted at 50-75% of net profit, subject to regulatory approval.

• Digitalization and technology investment to continue; strategy horizon extends to 2027, with goals to be developed toward the 2029 centenary.

• Further interest rate cuts expected in 2026, with loan volume growth likely to offset margin pressure.