Net profit growth due to improved business results
The report stated that net profit in the first half of the yearincluding non-controlling shareholders, increased to PLN 4,395 billion from PLN 2 billion 42 million a year ago for the first six months.
As stated in the management report, net profit increase in the first half of the year was determined by improving the result on business activitieswhich reached PLN 13,591 billion (an increase of PLN 2,253 million y/y), mainly as a result of an increase in net interest income by PLN 1,667 million, as well as an improvement in net fee and commission income by PLN 344 million and in other income by PLN 242 million.
Impact of write-offs and impairments on half-year results
In addition, the result on write-offs and impairment was higher by PLN 938 million, mainly as a result of lower cost of legal risk of mortgage loans in convertible currencies by PLN 1.121 billion and operating costs higher by PLN 410 million, including higher employee benefit costs by PLN 323 million (among others, as a result of the wage regulations), higher depreciation costs by PLN 56 million and higher regulatory costs by PLN 27 million.
In the presentation of the results, the bank pointed out that the reported net profit for the first half of the year amounted to almost PLN 4.4 billion; excluding CHF reserves and the effect of credit holidays would reach PLN 6.8 billion.
Development of the scale of operations and increase in total assets
It was added that as a result of the actions taken in the first half of this year, there was an increase in the scale of operations, both in relation to the same period of the previous year and until the end of 2023. Total assets reached over PLN 507 billion, which means an increase of PLN 46 billion compared to the same period of the previous year and PLN 6 billion compared to the level of assets at the end of 2023.
Customer Deposits amounted to almost PLN 399 billion, i.e. increased by PLN 33 billion compared to the situation at the end of June 2023 (as a result of the increase in both private banking deposits, corporate deposits and company deposits) and remained at a stable level compared to the situation at the end of December 2023.
Growth in deposits and financing provided to customers
The bank also reported that financing provided to customers amounted to almost PLN 271 billion and increased by PLN 20 billion compared to the end of June 2023 – mainly as a result of growth of housing loans in PLN by a decrease in financing granted to economic entities both in form credit but also Leasing by increase in factoring – and by PLN 8 billion compared to the end of December 2023.
PKO BP also reported that Bank Securities Portfolio amounted to approximately PLN 183 billion, i.e. an increase of PLN 31 billion compared to the end of June 2023 and by PLN 3 billion compared to the end of December 2023.
PKO BP as the largest Polish universal bank
PKO BP is the largest universal bank in Poland. Treasury has 29.43 percent of the bank’s shares. The value of PKO BP’s assets is PLN 507.3 billion. The company serves 12 million customers. (PAP)
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