This article first appeared on GuruFocus .
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Net Profit (H1 2026):$2.2 billion, with a 47% year-on-year improvement in CIT. Q2 2026 net profit was $1,173 million, up 14%.
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Net Interest Income (H1 2026):$6,164 million, down 3% year-on-year. Q2 2026 net interest income was $3,102 million.
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Net Fee Income (H1 2026):$1,539 million, up 5% year-on-year. Q2 2026 net fee income was $768 million.
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Total Income (H1 2026):$8,052 million, up 1% year-on-year. Q2 2026 total income was $4,057 million.
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Return on Equity:19%.
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Cost-to-Income Ratio:28.7% on a like-for-like basis, excluding integration, rebranding, and bank fund costs.
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Cost of Risk:Approximately 35 basis points.
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Gross Loans:$177 billion, up 8% year-on-year and 23% quarter-on-quarter.
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Customer Deposits:$246 billion, up 11% year-on-year and 8% quarter-on-quarter.
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Total Customer Funds:$279 billion, an increase of 30%.
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Total Assets:$323 million, up 3% year-on-year and 6% quarter-on-quarter.
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Net Interest Margin:4.39%.
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Non-Performing Loans (NPL) Ratio:3.6%, an improvement from 3.9% in the previous year.
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New Customer Acquisition (H1 2026):Over 300,000 customers acquired. Newly acquired retail customers increased by 17%, 13 (affluent) customers by 15%, and SME customers by 11%.
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New Mortgage Lending (H1 2026):$6.7 billion. Q2 2026 alone was $4.2 billion.
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Rebranding Costs (H1 2026):175 million total (67 million in Q1, 108 million in Q2).
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Integration Costs (H1 2026):107 million total (25 million in Q1, 83 million in Q2).
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Net profit increased 14% quarter-over-quarter to $1.173 billion in Q2 2026, driven by strong business activity.
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Customer acquisition surged, with over 300,000 new customers in H1 2026, including a 17% increase in retail and 11% in SME segments.
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Digital engagement grew significantly, with mobile banking app users up nearly 10% year-over-year to 3.5 million.
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Net fee income rose 5% year-over-year in H1 2026, supported by strong growth in asset management fees (+33%) and credit fees (+22%).
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Cost of risk remained low at 35 basis points, with NPL ratio improving to 3.6% from 3.9% a year ago, reflecting solid portfolio quality.
Negative Points
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Net interest income declined 3% year-over-year in H1 2026, impacted by a $71.2 million negative adjustment from a European Court of Justice ruling.
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Rebranding and integration costs totaled $282 million in H1 2026, weighing on overall expenses and cost-to-income ratio.
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Effective tax rate rose sharply to 39.7% in Q2 2026 from 24.5% a year ago, significantly reducing net profit.
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Net fee income in Q2 2026 was slightly lower than Q1 due to temporary promotional costs in the SME segment.
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Uncertainty remains around regulatory risks, including potential provisions for unauthorized transactions and European Court of Justice rulings on loan costs.
Q & A Highlights
Q: What is the outlook for net interest income and margins, especially given the recent European Court of Justice ruling? A: (Bernhard Leder, CFO) Net interest income began to reverse and develop positively in Q2, increasing despite a ~71 million Polish zloty charge from the ECJ ruling. Excluding that charge, the net interest margin was roughly flat, reflecting the stabilization of the interest rate environment. Strong volume growth on both sides of the balance sheet and an increase in the investment book due to strong deposit growth also supported NII and NIM. The trend is reversing.
Q: Do you sustain your outlook for costs, including the $250 million for integration and rebranding and the 4-5% organic cost growth? A: (Michal Gajewski, CEO) Yes, we are on a very good path and the $250 million cap for this year remains valid. We have exerted strong cost discipline, and business-as-usual costs are well under control. We are positive we will come out at the guided figures.
Q: What is the outlook for loan volume growth in 2026 and 2027? A: (Michal Gajewski, CEO) We expect similar dynamics to what we are observing now. We forecast about 7% growth for next year, with 2027 being slightly lower due to the investment peak at the turn of the year. The macro environment should remain supportive.
Q: What was the reason for the weaker performance in net fee income in Q2? A: (Michal Gajewski, CEO) The slight dip was due to a special promotional offer for the SME segment in Q1. Excluding that, Q2 would have been another record high. The general trend for fees is very positive, with strong year-on-year growth in asset management fees (+30%), guarantee fees (+32%), and credit fees.
Q: What specific steps are being taken in asset management, and how will the new distribution model impact fee income? A: (Michal Gajewski, CEO) The first action is the democratization of investments, allowing customers to start investing with as little as 10 zloty. This has already shown strong results. The group's strategy focuses on four pillars of financial health, which will drive long-term growth. The TFI will become an associated entity, so the impact will be seen indirectly, but the goal is to grow the business and profits from this area.
Q: The cost of risk performed better than the 40-50 bps guidance. Is this level recurring? A: (Bernhard Leder, CFO) The macroeconomic landscape is developing nicely. At 35-37 bps, we are close to the guidance. If the macro environment continues to be good, we could remain at these levels. Portfolio performance across segments is good and stable, with no major changes expected.
Q: Have you created any provisions for the proceedings related to unauthorized transactions with the Anti-Monopoly Office? A: (Michal Gajewski, CEO) At the moment, we are talking to the office and analyzing their expectations. We have not created any provisions for this. We are waiting for their final proposals.
Q: What is the risk of claims related to the European Court of Justice judgment on non-interest costs, and have you created provisions for customer complaints? A: (Agnieszka Dowzycka, IR Director) We stopped charging these costs in 2024, long before the ECJ ruling. We have 374,742 cases, with 80% in favor of the bank. We see increased activity from companies buying claims, but no dramatic increase in complaints or lawsuits. We believe the current provision level is adequate and was agreed upon with our external auditors.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
