BNP Paribas Bank Polska (BNP) Q1 2025 earnings summary

Executive summary

• Q1 2025 net profit reached PLN 741.4m, up 25.5%–26% year-over-year and 46% quarter-on-quarter, driven by higher banking activity, improved cost of risk, and strong net banking income.

• Mortgage and retail loan growth was strong, with strategic focus on digital transformation and sustainable financing (PLN 10.7bn in ESG-linked transactions).

• The bank increased affluent and wealth management clients, while reducing inactive retail clients.

• Recognized for excellence in cash loans, cybersecurity, and wealth management, with multiple industry awards.

• Dividend of PLN 1.16bn (PLN 7.86/share) from 2024 profit paid in May 2025.

Financial highlights

• Net banking income rose to PLN 2.12bn (+8.9% YoY); net interest income at PLN 1.49bn (+6.6% YoY); net trading income at PLN 285m (+31.9% YoY).

• Revenues increased by over 5% quarter-on-quarter and 9% year-on-year; cost-to-income ratio, adjusted for IFRIC 21, dropped below 40%.

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

• Gross loans reached PLN 89.6bn (+0.9% YoY); customer deposits at PLN 127bn (+1.8% YoY).

• Cost of risk remained low at 0.12% (PLN -27m), reflecting strong portfolio quality.

Outlook and guidance

• Economic growth in Poland is expected to exceed 3.5% in 2025, supported by EU funds and investment projects.

• Monetary policy easing anticipated, with 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 new POLSTR benchmark will gradually replace WIBOR, with full implementation expected by 2028.

• Guidance for net fee and commission income is positive if loan activity continues to grow.