Bank Polski (PKO) investor relations material

Executive summary

• Net profit for H1 2026 reached PLN 5.29 billion, up 3.1% year-over-year, with ROE at 18.4% and a solid capital base (CET1 at 15.55%).

• Double-digit growth in both customer savings (+12.9% y/y) and financing (+13.9% y/y), with total assets surpassing PLN 608,448 million.

• Corporate lending volumes experienced double-digit growth year-over-year, driven by strong investment activity, with expectations for continued high single-digit growth.

• Market share targets achieved in cash loans and mortgages, with significant increases in retail and corporate lending.

• Recognized for digital innovation and customer service, winning multiple industry awards.

Financial highlights

• Net interest income for H1 2026 was PLN 12,027 million, slightly down from PLN 12,135 million in H1 2025, with NIM at 4.35%.

• Fee and commission income rose 10.1% y/y to PLN 2,785 million, driven by investment funds, brokerage, FX, and lending.

• Operating expenses increased 1.9% y/y, with a cost/income ratio of 31.6%.

• Cost of risk remained low at 30 bps, reflecting stable asset quality.

• Legal risk provisions for CHF loans totaled PLN 24.3 billion since 2019, with over 90% of contracts settled or in process.

Outlook and guidance

• NIM showed a 4 basis point increase quarter-over-quarter, with management expecting stabilization at current levels for the next two quarters and a margin above 4% in 2027, assuming a gradual decline in interest rates.

• Lending activity expected to accelerate, supported by favorable macroeconomic conditions and easing monetary policy.

• Cost growth for 2026 is projected in the mid to high single-digit range, reflecting normalization after years of high inflation and ongoing strategic initiatives.

• Dividend payout is expected in the 50%-75% range, subject to regulatory guidance and capital planning.

• Implementation of IFRS 18 is expected to impact presentation and disclosure from 2027, but not recognition or measurement of assets and liabilities.