BNP Paribas Bank Polska (BNP) Q1 2025 earnings summary

Executive summary

• Q1 2025 net profit reached PLN 741.4m, up 25.5% year-over-year and 46% quarter-on-quarter, driven by improved net banking income, low credit risk, and strong loan sales.

• Robust increase in revenues, supported by both interest and net trading income, with NBI at PLN 2.12bn (+8.9% YoY).

• Loan portfolio growth led by mortgages and personal finance, with stabilization in retail banking and strong corporate loan sales.

• Strategic focus on acquiring profitable, affluent, and wealth management clients, and advancing digital transformation.

• Supported sustainable development with PLN 10.7bn in sustainable financing and key ESG-linked transactions.

Financial highlights

• Net profit reached a historical high, with dynamic growth year-on-year and quarter-on-quarter; net interest income at PLN 1.49bn (+6.6% YoY).

• Revenue up 9% year-on-year; adjusted for credit holidays, growth would be 7%.

• Operating expenses increased 6% YoY to PLN 976m, mainly due to higher BGF costs; excluding BGF, expenses rose 3.1% YoY.

• Cost of risk at 0.12% (PLN -27m), lowest in the market, reflecting strong portfolio quality.

• ROE at 19%, cost/income ratio at 46.1%, and NIM stabilized at 3.64%.

Outlook and guidance

• Economic growth in Poland expected to exceed 3.5% in 2025, supported by EU funds and robust domestic demand.

• Monetary policy easing anticipated, with further rate cuts expected; NBP reference rate projected to fall to 3.5% by mid-2026.

• Strategic focus on customer acquisition, capital-efficient lending, sustainable transformation, and AI-driven operational efficiency.

• The Group anticipates stable loan quality and continued focus on digital resilience and regulatory compliance.