BNP Paribas Bank Polska (BNP) Q3 2024 earnings summary

Executive summary

• Q3 2024 net profit reached PLN 636 million, up 43% year-over-year and 2% quarter-on-quarter, with strong revenue growth, controlled expenses, and moderate CHF portfolio legal risk impact.

• Net profit for the first nine months of 2024 was PLN 1.85 billion, up 32.7% year-over-year, driven by robust interest income and a net interest margin of 3.95%.

• Lending volumes increased in corporate banking, while retail lending stabilized; digital engagement and customer acquisition continued to grow, with a 5% increase in BLIK transactions quarter on quarter.

• Significant progress in ESG, with PLN 10.4 billion in sustainable financing and top ESG ratings among Polish banks.

• Legal risk charges related to CHF loans fell by 49.2% YoY to PLN 488 million, positively impacting results.

Financial highlights

• Net banking income for 9M 2024 reached PLN 5,737 million (+5.1% y/y); net interest income was PLN 4,201 million (+10.4% y/y).

• Operating expenses for 9M 2024 were PLN 2,512 million (+10.6% y/y), with a cost/income ratio of 43.8%.

• Cost of risk normalized at 0.28% for 9M 2024, considered the lowest in the industry.

• Gross loans stood at PLN 89.5 billion (-0.1% y/y); customer deposits at PLN 122.1 billion (-1.3% y/y).

• Impaired loans increased from 3% to 3.4% due to a one-off reclassification, with coverage ratios stable.

Outlook and guidance

• Economic recovery is expected, but the scale is uncertain due to weak European industry and persistent inflation above the NBP target until mid-2025.

• Anticipated lower interest rates in 2025 and increased loan demand as EU funds flow in.

• The bank will focus on customer acquisition, digitalization, AI strategy, and continued CHF legal risk mitigation.

• Preparing for regulatory changes, including the CRD/CRR3 package and a new long-term funding ratio.

• GDP growth in Poland is forecast at 3% for 2024, accelerating to 3.5–4% in 2025.