Bank Pekao Achieves Record Net Profit of PLN 1.828 Billion in Q3 2024, Surpassing Strategic Goals

The third quarter was the best in history for Bank Pekao in terms of net profit, which amounted to PLN 1.828 billion. This was mainly due to an increase in interest income, a revival of credit activity, and an increase in the credit portfolio. The bank maintained a good pace of development in digital channels. The new sale of cash loans in the third quarter was higher by more than one-fifth year on year. The volume of SME financing increased by 10% during this period. The bank maintains a strong capital position and the ability to pay dividends in accordance with its strategy.

The recurring consolidated net profit, adjusted for the impact of credit holidays and provisions for risks associated with loans denominated in Swiss francs, grew by 4% year on year in the third quarter to PLN 1.884 billion. The recurring net income also increased by 4% cumulatively over 9 months of 2024, closing at PLN 5,253 billion.

– We had a very successful, record-breaking quarter. This is due to good sales of accounts and loans, effective customer acquisition, but also the effective use of macroeconomic conditions. We have all the resources to reap the benefits of the expected investment recovery in the coming quarters and to prepare effectively for the period of monetary policy easing – says Cezary Stypułkowski, Vice President of Bank Pekao, who heads the board of directors.

The third quarter was the second to last in the horizon of the currently implemented strategy of Bank Pekao for 2021-2024, and the bank is on the best way to achieve the goals set out in it.

The strategic goal of 3.2 million active mobile banking customers has already been clearly exceeded. At the end of September, the number of people actively using banking through their mobile phone reached 3.4 million.

The cost/income ratio was at a level of 34.7%, significantly better than the goal set for the end of 2024 to go below 42%. Meanwhile, ROE amounted to 21.4% compared with 10% planned for the end of 2024 in the strategy (however, assuming that the NBP reference rate is at a level of 0.1%).

Bank Pekao is also close to achieving the goal in terms of the digitisation index, i.e., the percentage of processes that a retail customer can carry out in digital channels. This is one of the key strategic aspirations of the bison bank. By the end of the year, this parameter is expected to be around 100%
to enable retail customers to handle almost any matter online. At the end of September, this measure was 93%, but the bank is now introducing (for some customers) the possibility to apply for a mortgage loan in the mobile application PeoPay and on the website Pekao24.

In the third quarter, positive trends in the sale of cash loans were also maintained, which increased by 22% year on year. The percentage of digital sales of this product is consistently increasing, and in the period July-September, this percentage stood at 86%.

The third quarter also saw an increase in the volume of corporate loans by 1% year on year, due to an increase in business loans (MID + SME) by 6% year on year. Overall, the credit portfolio increased by 5% year on year, which maybe a harbinger of a more permanent recovery in credit action.

The cost of risk remained low at 43 bp (in Q3 2024). The strategic goal for the end of the strategy period in 2024 is a range of 50-60 bp.

Bank Pekao has a very good capital position. At the end of September, the total capital ratio of the group (TCR) was 16.9%, and Tier1 was 15.6%. In both cases, they were clearly above regulatory minimums.