Bank Pekao S.A. started 2025 with solid results, achieved through contributions from all business segments. Net profit for the first quarter increased, and the bank effectively leveraged macroeconomic conditions. The customer base expanded, and lending activity grew, with the bank maintaining momentum in digital banking.
The recurring consolidated net profit, adjusted for factors such as credit holidays and legal risk reserves related to Swiss franc loans, amounted to PLN 2.076 billion in Q1 2025. The reported net profit was PLN 1.685 billion.
"The first quarter is also the last of the reporting periods before announcing our short-term strategy. The results of the past quarter show that we have all the resources, capabilities, and means to enter the implementation phase of our ambitious plan with vigor. It's important that our lending activity, customer acquisition, and digital banking dynamics maintain their pace," said Cezary Stypułkowski, CEO of Bank Pekao.
The bank's net profit growth was mainly driven by double-digit positive dynamics in both interest income and fee and commission income. The former amounted to PLN 3.4 billion in Q1 2025, which was 11% higher year-on-year compared to January-March 2024. Fee and commission income was 10% higher year-on-year in Q1 2025, totaling PLN 732 million.
For another consecutive quarter, the deposit base increased significantly by 8% year-on-year, supported by high acquisition of new customers and record sales of savings accounts (170,000 in Q1 2025) and a solid number of new current accounts.
On the lending side, the overall volume growth in Q1 2025 was 4% year-on-year. The retail loan portfolio grew by 5%, and corporate loans by 4%.
High dynamics of new cash loan sales continued, reaching 25%, with 89% of these sold remotely. In corporate banking, a notable 12% increase in financing for MID and SME segments was observed.
Risk costs remained low at 33 basis points in Q1. Bank Pekao maintains a very strong capital position. At the end of March, the group's total capital ratio (TCR) was 17.4%, and Tier1 was 16.2%. Both were significantly above regulatory minimums.
This enabled the payment of dividends, amounting to PLN 4.8 billion, or 75% of the profit for 2024, which equated to PLN 18.36 per share. The dividend date was set for May 7, and the payment date for May 23.
Bank Pekao is entering a period of new strategy. Key assumptions for the end of 2027 include ROE above 18%, C/I below 35%, and 4.4 million active mobile customers. As of the end of March 2025, these indicators were 20.5%; 38.5% (but 31.3% excluding the contribution to the Bank Guarantee Fund); and 3.5 million (with an increase of 90,000 active mobile banking users in Q1 2025).
Bank Pekao S.A., founded in 1929, is one of the largest financial institutions in the CEE region and the second largest universal bank in Poland, with assets of PLN 333 billion. The bank has the second largest branch network in the country. It is a leader in corporate banking, serving every second among largest corporates in Poland. Pekao holds a prominent position in the market for asset management, brokerage services, and private banking. The diversified business profile of Bank Pekao is supported by a market-leading balance sheet and risk profile, reflected in the lowest risk costs, strong capital ratios, and resilience to macroeconomic conditions (Pekao is the most resilient bank in Europe, taking first place in the stress tests conducted by the EBA in 2023 among 70 banks). Since 1998, Bank Pekao has been listed on the Warsaw Stock Exchange and has been a member of several local indices (including WIG 20 and WIG) as well as international indices (including MSCI EM, Stoxx Europe 600, and FTSE Developed). Pekao is among top dividend-paying companies listed in Warsaw, with a total shareholder pay-out of nearly PLN 20bn over the past 10 years.
