Bank Handlowy w Warszawie (BHW) Q4 2025 earnings summary

Executive summary

• Achieved record-high institutional banking loan growth of 22% year-over-year, with trade finance assets up 29% and portfolio growth three times higher than the market average.

• Net income for 2025 was PLN 1.666 billion, with Q4 net profit at PLN 596 million, up 27% sequentially and 62% year-over-year.

• Dividend payout for 2025 reached a record PLN 1.8 billion, translating to a 13% yield, with a 75% payout ratio permitted by the regulator.

• ROE for 2025 stood at 19.7%.

• Continued digitization and AI tool implementation enhanced productivity and client experience.

Financial highlights

• Q4 revenue was PLN 980 million, down 3% sequentially and 17% year-over-year; net profit for the quarter was PLN 596 million.

• Net interest income for Q4'25 was PLN 713 million, down 3% sequentially and 10% year-over-year.

• Net fee and commission income for Q4'25 was PLN 148 million, down 3% sequentially but up 7% year-over-year.

• Operating expenses and depreciation for Q4'25 were PLN 329 million, down 8% sequentially and 12% year-over-year.

• Cost of risk remained low, with a negative result of write-offs in consumer banking.

Outlook and guidance

• Continued focus on institutional banking growth and rebuilding the consumer banking client portfolio.

• Cost-to-income ratio target remains below 30% in the long term.

• Expectation of further GDP growth in Poland, with investments and consumption as key drivers.

• Inflation projected to stabilize near 2% in the coming months, with possible slight increase later in the year.

• Capital position expected to improve post-merger.