BNP Paribas Bank Polska (BNP) Q2 2025 earnings summary

Executive summary

• Net profit for H1 2025 reached PLN 1,475 million, up 22% year-over-year, driven by strong non-interest income, trading, and cost control, with total comprehensive income at PLN 1,621 million.

• Net banking income rose 15.8% year-over-year to PLN 4,212 million, with significant growth in net trading and fee income.

• Retail and personal finance banking saw significant increases, reversing previous declines in mortgage loan production.

• Operating expenses increased only 2.2% year-over-year, with improved cost/income ratio and disciplined cost management.

• Legal risk from CHF mortgage loans remains significant but is gradually decreasing, with increased provisions and ongoing litigation.

Financial highlights

• Net interest income rose 13.2% year-over-year to PLN 2,968 million; net fee and commission income grew 5.3% to PLN 656 million; net trading income surged 44.6% to PLN 603 million.

• Cost/income ratio improved to 41.8% (-5.6 pp y/y); ROE at 19%.

• Total assets stood at PLN 168.5 billion, with loans to customers at PLN 86.5 billion and customer deposits at PLN 129.3 billion.

• Net allowances on expected credit losses at PLN -9 million, reflecting very low cost of risk.

• Book value per share reached PLN 107.0 (+5.4% y/y).

Outlook and guidance

• Optimism for continued growth in mortgage and cash loan production, with loan origination expected to accelerate, especially in retail banking.

• Cost discipline will remain a priority, though maintaining current low levels may be challenging due to inflationary pressures.

• Legal risk from CHF mortgage loans and potential regulatory interventions remain key sector challenges.

• No major changes planned for pay and bonus systems; employment optimization to continue.

• Commission income outlook for H2 2025 is positive, with expected range between 280 and 320 (PLN million).