PKO BP announced its financial results for 2025
PKO BP on Thursday, it released its 2025 financial results.
“The consolidated net profit of the PKO Bank Polski SA Group obtained in 2025 amounted to PLN 10,682 million and was PLN 1,378 million higher than in 2024, which was determined by an improvement in the result on business activities and a decrease in the cost of legal risk of mortgage loans in convertible currencies with a higher level of operating costs,” the bank reported in its financial report for 2025.
PKO BP announced that the bank group’s result on business activities for 2025 amounted to PLN 30.37 billion and was more than PLN 1.6 billion, or 5.6 percent. higher than the year before. This was due to an increase in net interest income as well as higher net commission and fee income.
Reductions in interest costs
Interest income exceeded PLN 24.2 billion, which means an increase of 9.3%.
“The interest margin in 2025 (excluding the impact of recognizing the effects of statutory credit holidays in 2024) decreased only by 0.04 pp y/y and amounted to 4.76 percent. At the same time, the average Wibor3M rate decreased by 0.77 pp. The decline in the reporting interest margin was much smaller than the declines in market interest rates due to the hedging policy used in the Bank (natural security and instruments). financial),” we read in the bank’s report.
It emphasized that the declines in market rates had a greater impact on… reductions in interest costs. The decline in interest income was “slightly smaller” due to “an increase in the profitability of the securities portfolio and an increase in loan volumes.” The bank also reported that changes in the structure of interest-bearing assets, i.e. an increase in the share of lower-interest-bearing securities, “negatively affected the realized interest margin.”
Interest rates on loans and deposits
“In 2025, average loan interest rates of the Bank’s Capital Group was 7.9 percent, and average interest rates on deposits in total, it amounted to 1.4 percent. In 2024, it was 8.8 percent. and 1.6 percent – PKO BP reported.
Commissions and fees
The result is backwards commissions and fees increased to 2.4%, to over PLN 5.2 billion. Financing granted to customers at the end of 2025 amounted to PLN 316 billion, which is an increase of PLN 29.7 billion compared to the end of 2024.
“The volume of corporate loans increased by PLN 9.1 billion, while retail and private banking loans increased by PLN 18.2 billion, including real estate loans by PLN 10.2 billion and consumer loans by PLN 7.9 billion,” PKO BP reported. “The increase in real estate loans was due to the increase in mortgage loans in PLN (+PLN 12.3 billion), with a decrease in mortgage loans in foreign currencies (-PLN 2.2 billion) as a result of repayment, concluded settlements and additional provisions for legal risk,” the bank also said.
Bank operating costs
PKO BP also announced that in 2025 bank operating costs exceeded PLN 9.4 billion, which means an increase of 11.2%. compared to 2024. This increase is due to, among others, higher by 12.1 percent employee costs and 2% higher material costs, at the same time decreased by almost 71%. costs of court fees in cases involving foreign currency housing loans, depreciation also increased by 4%. The bank also reported that by almost 69 percent regulatory costs increased, “mainly due to the restoration of contributions to the mandatory deposit guarantee scheme in 2025.”
“The operational efficiency of the Bank’s Capital Group measured by the C/I ratio on an annual basis was 31.1% (an increase of 1.6 pp y/y),” PKO BP reported. “The share of impaired exposures at the end of 2025 was 3.34%, which means a decrease of 0.25 percentage points compared to 2024, mainly due to the improvement in the quality of consumer loans,” the bank said.
Cost of credit risk
The report also states that cost of credit risk at the end of 2025 it was -0.3 percent. and was 0.04 pp lower than that obtained in 2025
“With high discipline in managing operating costs and risk, cost-to-income and credit risk ratios maintained at a solid level, respectively: 31.1% and 30 bps – achieved net profit of the PKO Bank Polski Group for the first time in the Polish banking sector it exceeded PLN 10 billion. We achieved a return on equity (ROE) of 19.5%. and we are able to provide a record dividend for our shareholders,” said Szymon Midera, president of PKO BP, in a letter regarding the bank’s activities in 2025.
