PLN 4,8 billion profit after Q3 2023. PKO Bank Polski presented record results
PKO Bank Polski Group's net profit after three quarters of 2023 exceeded PLN 4,8 billion, representing an increase of PLN 3,2 billion compared with the corresponding period of 2022. Profitability in the first three quarters of the year, measured by return on equity (ROE), was 16 percent. The bank's profit in the third quarter amounted to PLN 2,78 billion. The Group steadily increased its scale of operations. Its assets increased by 7,7 percent y/y and reached PLN 473 billion. Funding granted to customers increased by 5,2 percent to PLN 260 billion, and savings acquired by 12,4 percent, reaching PLN 508 billion. In the third quarter of 2023, the bank reported record growth in new mortgage and consumer loan sales. Total growth in this category reached 66,5 percent y/y, which was largely driven by the launch of the Bezpieczny Kredyt 2% (subsides mortgage). The Bank also recorded solid double-digit growth in corporate financing, which reached 11,6 percent y/y. Core operating income grew by 51,8 percent y/y and interest income growth reached 80,3 percent. On a comparable basis - excluding one-off events from the third quarter of 2022 - core income growth was 18,6 percent y/y and interest income increased by 26,1 percent, thanks to a further improvement in the interest margin to 4,33 percent. 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. The bank exhibited high-cost efficiency. The cost/income (C/I) ratio amounted to 30,9 percent in Q3 2023, despite visible price pressure on operating cost dynamics. PKO Bank Polski continued to implement its programme supporting the purchase of the first apartment in the third quarter. By 30 September 2023, the bank had received 30 thousand applications for the Bezpieczny Kredyt 2% (subsides mortgage). More than 6 thousand loan agreements were concluded, and the average amount of the loan applied for was PLN 414 thousand. The Bank continued its digital transformation, developing new features of the IKO application and the offer of value-added services under the VAS HUB technology. The number of active IKO applications after three quarters of 2023 exceeded 7,7 million.
The profit of the PKO Bank Polski Group after the three quarters of 2023 amounted to PLN 4 822 million. The bank increased income from core operations by almost 52 percent (excluding the extraordinary events of the third quarter of 2022 by 18,6 percent and steadily increased the scale of operations. As a result, the group's assets grew to 473 billion after three quarters of the year and the number of customers reached 11,9 million. The bank also demonstrated high-cost efficiency. The cost/income (C/I) ratio reached 30,9 percent, despite the visible price pressure on operating cost dynamics. The cost of risk ratio reached 47 bps and NPL, after a decrease of 32 bps y/y, ranked at 3,59 percent.
- The historic result - in excess of PLN 4.8 billion after three quarters of the year - is evidence of PKO Bank Polski Group's ability to take proper advantage of market opportunities. Double-digit growth in financing in the corporate segment, a growing share in the sale of mortgages, or the strengthening of capital ratios are achievements which, by building shareholder value, allow us to systematically achieve the objectives set out in the bank's strategy for 2023-2025,"
- emphasized Dariusz Szwed, CEO of PKO Bank Polski.
Record profit after three quarters
PKO Bank Polski's net profit after the three quarters of 2023 amounted to PLN 4,82 billion, and the profit generated in the third quarter of the year alone reached 2,78 billion zlotys. The reported return on equity (ROE) after nine months of the year was 16 percent. Income from core operations grew by 51,8 percent y/y, and growth in net interest income reached 80,3 percent. Under comparable conditions - excluding one-off events from the third quarter of 2022 - core income growth ranked at 18,6 percent y/y and interest income increased by 26,1 percent, thanks to a further improvement in the interest margin to 4,33 percent.
Dynamic revenue growth and high cost efficiency
The bank's performance was supported by high-cost efficiency and dynamic business growth. The cost/income (C/I) ratio after the three quarters of 2023 amounted to 30,9 percent, despite visible price pressure on operating cost dynamics. Group assets reached PLN 473 billion and the number of customers was 11,9 million. Customer savings increased by more than 12 percent y/y to PLN 508 billion and financing granted to customers reached PLN 260 billion. Sales of housing and consumer loans increased by more than 66 percent y/y, and financing granted to corporate customers grew by 11,6 percent y/y. Population deposits also grew dynamically, exceeding PLN 268 billion, an increase of 21,9 percent y/y.
Effective risk management and a focus on ESG transformation
The NPL ratio describing the quality of the loan portfolio ranked at a record low of 3,59 percent at the end of the third quarter of 2023. The cost of risk was 0,47 percent. The bank also strengthened its capital base. The Tier 1 ratio reached 19,25 percent, clearly above regulatory requirements. We also continued its efforts to position PKO Bank Polski as a leader in ESG transformation in the Polish banking sector. Both by funding investments to support customer sustainability and by organizational and structural changes within the bank. The bank also carried out activities related to financial education and counteracting digital exclusion.
Bezpieczny Kredyt 2% (subsides mortgage) and continuation of the Swiss franc mortgage agreements
PKO Bank Polski continued to implement its programme supporting the purchase of the first apartment in the third quarter. By 30 September 2023, the bank had received 30 thousand applications for a Bezpieczny Kredyt 2% (subsides mortgage). More than 6 thousand mortgage agreements were concluded, and the average amount of the loan applied for was PLN 414 thousand. Customers also opened 1,4 thousand of special saving accounts to buy an apartment, into which they deposited a total of PLN 3 million. In the third quarter, the bank also continued to offer settlements to individual customers with active mortgage loans in Swiss francs. By the end of the third quarter of 2023, almost 35 thousand mediations had ended positively. The total number of settlements concluded by 30 September exceeded 34 thousand.
Mobile transactions leader
For years, PKO Bank Polski has been at the forefront of banks offering modern solutions to their customers. Currently, the IKO application has more than 100 functions and offers a wide range of services, including non-banking services under the VAS HUB technology. These include solutions in the area of deferred payments – PKO Płace Później or identity confirmation with mDowod (e-ID card). At the end of September 2023, the number of active IKO applications exceeded 7,7 million, and the quarterly number of transactions reached 221 million.
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PKO Bank Polski is the undisputed leader of the Polish banking sector, and the value of its assets is PLN 473 billion. After three quarters of 2023, the net profit of the PKO Bank Polski group exceeded PLN 4.8 billion. The company serves 11.9 million customers. It is the basic provider of financial services for all customer segments, achieving the highest shares in the deposits, loans and individual investment funds market. Thanks to the development of digital tools, including the IKO application, which has been activated by customers over 7.7 million times, PKO Bank Polski is the most mobile bank in Poland.