BNP Paribas Bank Polska (BNP) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached PLN 1,214 million, up 28.1% year-over-year, with Q2 2024 net profit at PLN 623 million, despite Credit Holidays and CHF legal risk impacts.

• Return on equity (ROE) reported at 18.3%, exceeding 20% excluding Credit Holidays; earnings per share grew to PLN 8.21.

• Strategic return to mortgage lending mid-Q2, with PLN 265 million in new production and 20% of the mortgage portfolio now fixed rate.

• Continued digital transformation and sustainable financing, with volumes nearing PLN 10 billion and operational efficiency gains.

• Strong performance in investment products, digital banking adoption, and improved employee satisfaction.

Financial highlights

• Net banking income for H1 2024 was PLN 3,638 million (+2.4% y/y), with net interest income at PLN 2,622 million (+7.5% y/y) and net fee & commission income at PLN 623 million (-1.7% y/y).

• Net profit for H1 2024 was PLN 1.2 billion, driven by robust core activity, mainly net interest income.

• Cost-to-income ratio increased to 47.4% (+4.9 pp y/y), mainly due to higher personnel and regulatory costs.

• Total assets at 30 June 2024 were PLN 159.5bn, with customer deposits up 6.5% year-over-year to PLN 125 billion.

• Cost of risk remained low at PLN -88 million for H1 2024, reflecting high loan portfolio quality.

Outlook and guidance

• Expectation of continued economic rebound, with GDP growth forecasted at 2.5%-3% for Q2 and inflation set to re-accelerate to 5% in H2 2024.

• Focus on customer acquisition, digital transformation, process optimisation, and efficient capital management.

• Ongoing management of CHF mortgage legal risk and regulatory challenges, including potential further credit holidays.

• Anticipation of lower interest rates in 2025, supporting credit activity, especially in the corporate sector.

• No plans for further Credit Holidays; sector risks mainly legal in nature.