PKO Bank Polski SA (PSZKF) (H1 2026) Earnings Call Highlights: Record Net Profit and Strategic ...

Q & A Highlights

Q: Could you elaborate on the PLN320 million in costs allocated to the reserve for the protection of consumers? What type of provisions have you made and for what type of risks? A: (Company Representative) We deliberately did not specify the exact types of litigations and disputes, as they are ongoing in every bank, though the number has grown recently. We are on the safe side and do not expect materialization on the scale of the provisions made. Following the European Court verdict, we have reflected those interest rates and expect a homogeneous legal framework to be provided in Poland. From an auditor's viewpoint, the level of importance is much higher than the actual amount, so we have a model and analyze the numbers, but that does not mean we have the exact same opinion on the materialization of this risk equal to the amount.

Q: For the first time in a long time, the biggest bank is setting certain trends in Poland. How do you look at the next four to six quarters? Can you keep this pace, and do you think the whole sector may surprise in the coming quarters, especially with recent interest rate reductions supporting lending? A: (Company Representative) We do hope it will be so. We are happy that we are the first bank in Poland to open the new cycle of market growth, having planned this strategy a year and a half ago. The market helps us, but we are also doing a lot of organic work to keep developing faster than our rivals. For the first time, we have a higher dynamic of growth in credits than deposits. We want to keep this dynamic. From a macro perspective, we are not worried about the lending action in the coming quarters. We expect stability, perhaps a slight growth, in the credit-to-deposit ratio, so there is certainly no limit to our lending action.

Q: Is the upside forecast for two-digit volume growth for the next year? A: (Company Representative) We consider our base scenario as rightly conservative. If the risk factors do not materialize, the economic growth and even more the volume growth will be higher than it is now in our base scenario. We definitely stress that we want to be more active, especially outside Poland. We do not see a strong need to grow pan-European, but we will build new branches and representations, following our corporate customers abroad. We would like to start building at least the first footholds in European countries and also consolidate the market, as it is a good time for acquisitions.

Q: Should we understand that the bank would be interested in retail banking or corporate banking abroad? The concept of growing with Polish companies abroad seems to be the DNA of PKOBP. A: (Company Representative) Yes, this is what we are doing because we have accelerated creating trans-border competences and want to develop our branches outside. We have a new member of the board for international banking and are elaborating a diagnosis to build the structure for organic development for corporates and business clients. Non-organic development is mere speculation; we focus on organic development. However, we have a team which professionally analyzes all types of scenarios, including potential acquisitions, to be proactive and avoid situations where we have a good idea but have not examined how to execute it internally.

Q: Looking more into the future, do we see any place for further expansion of the interest margin in the second half of 2026? A: (Company Representative) We want to have market results flat, of course with a positive trend, if the market allows. In the second quarter, we would have had an increase in the quarterly margin if not for the one-off correction. So there is potential in the interest market, but we need to keep up to the guidance, so the margin gets stabilized. It will be flat plus, in a positive direction, but we will see what happens with interest rates in Poland, as external factors like the price of crude oil play a significant role.

Q: What is the probability of repeating the reserves or costs for customer protection or other operating expenses? A: (Company Representative) If interest is concerned, we have explained that it was a one-off problem. We have models which indicate customer behaviors and have been undertaking many activities to protect customers for many years. The conclusion of the European Court of Justice is their decision, so we need to stick to that and stabilize the legal conditions of operations. We will reflect it step by step, consistently, but we do not envisage any essential changes compared to what we have been doing until now.

Q: The cost of loans is 30 bps. Is this a repeatable level? A: (Company Representative) As of today, we do not see any basis to revise this level of 30 bps. We are entering new segments like Allegro and ?appka, but these are new clients to us, less risky than external clients who come with no prior information or relations. They will be burdened with slightly higher risk than our standard portfolio, but since the scale of business is essential, we do not think it will have an impact on this level.

Q: What is the loss of non-financial assets of PLN180 million in the second quarter? A: (Company Representative) There are two basic main items. One is associated with reserves on equity and allowances in Swiss francs which have not been paid by clients, about PLN30 million. The second item concerns the model of estimating value in the risk areas, for which we created PLN131 million.

Q: Regarding the increase in the pace of costs, can you provide more detail? A: (Company Representative) We gave guidance for this year that is more conservative, at inflation plus 0.10. For us, the priority is to continue development and activities. If there are changes, we will decide whether to keep up to the internal parameter or implement an initiative which will bring us value. We have many incentives concerning current costs, but we also have appetites that require fuel, which is associated with costs. We are going to continue optimizing and reconstructing main processes with state-of-the-art technologies, including automating complaint processes with agents, to maintain low increases in costs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .