In mid-2024, Bank Pekao achieved good results in all business segments. There was a clear growth trend in the area of retail banking, marked by high sales dynamics of mortgage and cash loans. The sale of SME financing grew at a double-digit rate, leading to a return of positive dynamics of corporate loans volumes. There was also a very high level of account sales, over 300,000 in the first half of the year, and one third of these were from young customers. The reported, consolidated net profit of Pekao exceeded PLN 2.9 billion in the first half of the year. The regular net profit grew by 4% year-on-year.
“The first half of the year was a period of continuation of positive trends in financial results for Bank Pekao. We are skillfully using the relatively high level of interest rates. Our modern offer in the area of retail banking clearly appeals to customers, including young ones, as we keep recording significant increases in sales and acquisition in this area for another quarter in a row. The digital transformation is also not slowing down,” says Robert Sochacki, Deputy Chairman of Bank Pekao, who leads the board’s work. “So despite different macroeconomic circumstances, we continue to implement our strategic directions of growth. We finance the activities of companies from micro-enterprises to the largest corporations, not forgetting our commitments from the ESG strategy. Importantly for shareholders, we were, are and continue to intend to be a dividend bank,” he adds.
The consolidated net profit of Bank Pekao in the first half of 2024 was PLN 2.936 billion, compared to a net profit of PLN 3.263 billion a year earlier. However, the net profit dynamics adjusted for the effect of loan holidays and CHF reserves was positive, and such adjusted profit in the first half of the year increased year-on-year by 4% to PLN 3.369 billion from PLN 3.243 billion a year earlier.
The change in net profit in year-on-year terms was largely due to higher reserve costs for Swiss franc loans, another edition of loan holidays, as well as increased operating costs due to inflationary wage increases and one-off events. The net result was positively influenced by an increase in the interest result, consistently built thanks to rising volumes and interest margin, despite lower market rates compared to the previous year.
Positive sales trends were maintained in retail banking. The number of active mobile banking customers at Pekao continued to grow, reaching 3.3 million at the end of the half-year compared to 3 million a year earlier. The strategic goal set for the end of 2024 (3.2 million) has already been exceeded.
The increase in new accounts in the half-year was very high. Sales exceeded 300,000, and importantly, every third account was opened by young customers up to 26 years of age, for whom Pekao has a particularly attractive offer.
New cash loan sales in the first half of the year increased year-on-year by 24%, with the bulk of such loans traditionally granted through digital banking. The year-on-year dynamics of new mortgage loan sales were positive. It reached PLN 2.4 billion in the second quarter alone and was 83% higher than in the same period a year earlier, with a marginal share of Secure Loan 2%.
Thanks to a consistently enriched product offer (FENG ecological loan, Union loan or investment loan for financing biogas plants), the bank once again achieved double-digit growth (12%) in the value of new financing for SME sector customers, which resulted in an 8% y/y increase in the corporate loan portfolio, with a 15% y/y increase in customer acquisition.
The cost/income ratio was at 36.7% in the first half of the year, significantly better than the target set for the end of 2024 to fall below 42%.
Risk costs remained low at 46 bp (in the first half of 2024), thanks to responsible management of the credit portfolio quality. The strategic target for the end of the strategy period in 2024 is the range of 50-60 bp.
The NPL ratio dropped below 5% (due in part to changes in the presentation of reserves for legal risk CHF loans and changes in the presentation of exIdea Bank volumes), which last year was one of the KNF criteria for a potential dividend payment of even 75% of the profit.
Bank Pekao has a very good capital position. At the end of June, the total capital ratio of the group (TCR) was 16.6%, and Tier1 15.1%. In both cases, these ratios were very clearly above regulatory minimums.
Source: https://ceo.com.pl/w-i-polowie-2024-bank-pekao-zanotowal-silny-wzrost-sprzedazy-zysk-netto-przekroczyl-29-mld-zl-46235
