BNP Paribas Bank Polska (BNP) Q4 2024 earnings summary

Executive summary

• Net profit reached a record PLN 2.4 billion in 2024, up 133% year-over-year, despite PLN 800 million in Swiss franc loan provisions.

• Core revenues grew, with net interest income up nearly 10% and net fee and commission income up 4.5%, while operating expenses rose 8.3% due to inflation and technology investments.

• ROE reached 16.9%, significantly above the cost of capital and up from 8.2% in 2023.

• Management recommends a 50% payout of 2024 net profit as dividend (DPS: PLN 7.86), with plans to continue this policy.

• The GObeyond strategy advanced, focusing on digitalization, sustainable finance (PLN 10.2bn sustainable financing), and operational efficiency.

Financial highlights

• Net banking income was PLN 7.8bn (+6.5% y/y); net interest income PLN 5.7bn (+9.9% y/y); net fee & commission income PLN 1.26bn (+4.4% y/y).

• Net profit grew 133% year-over-year to PLN 2.36bn; cost of risk: PLN -246m (-20.3% y/y); NIM: 3.8% for 2024.

• Cost-to-income ratio showed a positive trend, at 43.2% (41.0% excluding regulatory costs).

• Cost of credit risk remained below 30 basis points (0.20%), among the lowest in the peer group.

• Customer deposits increased 9.6% y/y to PLN 130.5bn, while gross loans declined 0.5% y/y to PLN 88.4bn.

Outlook and guidance

• Expect dynamic loan volume growth in 2025, with continued prudent risk management and focus on acquiring new active transactional clients.

• GDP growth in Poland expected below 4% in 2025, supported by EU funds; inflation to remain above NBP target until mid-2025.

• Reference rate cuts anticipated in H2 2025; credit demand expected to rise as economic conditions improve.

• Plan to maintain dividend payout at 50% of net profit and focus on sustainable transformation and AI-driven operational efficiency.

• ESG and sustainable financing remain strategic priorities.