Bank Polski (PKO) investor relations material

Executive summary

• Net profit for Q1 2026 reached PLN 2,522 million, up 2.1% year-over-year, driven by higher fee and commission income, lower legal risk costs for FX mortgage loans, and strong cost efficiency, despite a slight decrease in net interest income and higher regulatory costs.

• Total assets grew to PLN 593.8 billion, up 1.8% from year-end 2025, with customer deposits at PLN 471 billion and loans at PLN 326 billion.

• Achieved double-digit growth in customer savings and financing, with total assets up 11.8% year-over-year.

• Maintained strong market positions in loans (19.8% share), deposits (18.2% share), and led the retail investment fund market with a 22.6% share.

• ROE stood at 17.3%, with a solid capital base (CET1 ratio at 14.99%).

Financial highlights

• Net interest income for Q1 2026 was PLN 5,953 million, down 0.5% year-over-year, while net fee and commission income rose 10% to PLN 1,378 million, driven by investment funds and brokerage activities.

• Operating expenses increased 4.2% year-over-year, mainly due to higher regulatory charges; cost-to-income ratio rose to 34.4%.

• Cost of legal risk for FX mortgage loans dropped to PLN 388 million from PLN 973 million a year earlier.

• Share of stage 3 receivables decreased to 3.30%, with provision coverage at 90.7%.

• Earnings per share were PLN 2.02, up from PLN 1.98 in Q1 2025.

Outlook and guidance

• Net interest income is guided to remain flattish for the year, with a narrow range of -1% to +1%, as new volumes and hedging are expected to offset margin pressure.

• Fee income is expected to grow mid-high single digits year-on-year, barring unforeseen market events.

• The group is eligible to pay up to 75% of 2025 profit as dividends, with a proposed payout of PLN 7,675 million.

• Expectation of continued double-digit growth in customer financing and savings, supported by a resilient macroeconomic environment.

• Key risks include geopolitical tensions, regulatory changes, and ongoing legal proceedings related to FX and WIBOR-linked loans.