Financial results
August 23, 2023
PLN 2 billion in profit at high cost of legal risk - PKO Bank Polski presented its results for the first half of 2023
PKO Bank Polski Group's net profit in the first half of 2023 exceeded PLN 2 billion, despite a significant burden on the result from the cost of legal risk of mortgages denominated in the Swiss franc. Profitability in the first half of the year, as measured by return on equity (ROE), amounted to 10,6 percent.
The Group systematically increased the scale of its operations. Its assets have increased by 7,3 percent y/y to reach PLN 461 billion. Financing provided to customers increased by 3,7 percent to PLN 255 billion, and savings raised by 15,4 percent, reaching PLN 491 billion.
In H1 2023, the bank recorded strong double-digit financing growth in the corporate sector, which reached 14,6 percent y/y. Total sales of housing and consumer loans increased by more than 29 percent.
Income from the core operations increased by 20,6 percent. Net interest income continued to grow by 29,3 percent y/y, thanks in part to a further improvement of interest margin during the first half of the year to 4,31 percent, while net fee and commission income remained stable y/y, thanks to growth in income from banking activities offsetting lower income from funds and brokerage activities.
Bank had very good cost efficiency. The cost-to-income (C/I) ratio amounted to 32,9 percent in H1 2023.
The Bank has continued its digital transformation, developing new features in IKO mobile app and offer of value-added service through VAS HUB technology. The number of active IKO applications at the end of H1 2023 exceeded 7,6 million. The bank also introduced new facilities in the children's application PKO Junior.
PKO Bank Polski has actively joined in the implementation of the programme supporting the purchase of the first apartment. The bank's customers can take advantage of both the Bezpieczny Kredyt 2% (subsides mortgage) and set up special housing accounts under the programme.
