PKO BP’s net profit in the first quarter of 2023 was PLN 1,454 million, exceeding expectations

PKO BP Group’s net profit in the first quarter of 2023 increased to PLN 1,454 million from PLN 1,426 million a year earlier, the bank said in the report. The bank profited 6 percent. Above market expectations, which expected it to be PLN 1,369.7 million.

The forecasts of 7 brokerage firms for first-quarter earnings ranged from PLN 1,314 million to PLN 1,431.1 million.

Net profit increased by 2%. On an annual basis it decreased by 15 percent. Kuwaiti Dinar.

The first-quarter results were weighed down by the legal risk costs of the CHF loans, which amounted to PLN 967 million. The bank previously reported this ruling.

The result of the business activity of PKO BP in the first quarter was PLN 5.55 billion, that is, it increased by 23%. On an annual basis and 0.3 percent. kdk, thanks to the significant increase in the result of the core activities.

The bank’s net interest income in the first quarter amounted to PLN 4,187 million and turned out to be in line with the forecasts of analysts, who expected it to reach PLN 4,214.3 million (within the expected range of PLN 4,173.5 – 4,265). Interest income increased by 35%. On an annual basis, by 3 percent. on a quarterly basis.

The bank recorded another increase in the interest margin to 4.32 percent. From 4.19 percent in the fourth quarter of 2022.

PKO BP announced that the continued growth in net interest income and interest margin is the result of further improvement in interest income from the bonds and guarantees portfolio, as well as slower growth in financing costs apparent in the market.

Net fee and commission income amounted to PLN 1,103 million and was 10% higher than the previous year. Below market estimates, which predicted PLN 1,221.3 million (forecasts ranged from PLN 1,205 – 1,238 million). Commission income increased by 2%. On a year-over-year basis, mainly due to income from loans and cards, but it was down 1 percent. Kuwaiti Dinar.

The bank announced that the quarterly dynamics of net commission income was supported by income from the capital market, including bond distribution (+32.1% qoq).

The balance of provisions was PLN 339 million, while analysts expected 10 percent. High write-off rates at PLN 378.5 million. Forecasts ranged from PLN 375 million to PLN 382 million. Reserves fell by 33 percent. On an annual basis and 9 per cent. Kuwaiti Dinar.

Cost of risk in the first quarter of 2023 was 59 basis points, while in the fourth quarter of 2022 it was 46 basis points.

The bank’s operating expenses amounted to PLN 1,985 million in the first quarter, which was at the level expected by the market (PLN 1,999.8 million). Costs increased by 9 percent. O/O and 15 per cent KD.

The cost/income ratio in the first quarter was 35.8%.

Financing granted to clients amounted to about PLN 254 ​​billion, an increase of 2.9 percent. On an annual basis and 2.8 percent. Kuwaiti Dinar.

Savings of PKO BP Group customers increased by 13.1% in total. on an annual basis and 3.5 percent. Kuwaiti dinars to 471 billion Polish zlotys. The bank’s share in the personal savings market rose to 28.4%.

In the structure of time deposits, the share of time deposits increased to 32.9%.

Loan volumes in the retail sector decreased by 4%. On an annual basis, deposits in this sector increased by 17 per cent. y/o

Financing to corporate clients increased by 16.6%. On an annual basis, those customers’ savings are down 15 percent. y/o

New sales of housing loans in the first quarter of 2023 amounted to PLN 2.5 billion, while in the fourth quarter of 2022 they amounted to PLN 2.2 billion.

PKO BP’s share in the home loan sales market was 35.2%.

On Thursday, the bank announced that borrowers had provided it with 48.1 thousand. Applications for mediation of mortgage loan agreements in Swiss francs, more than 27,000 settlements have been completed.

PKO BP announced that in the settlement process, a fixed-rate loan is becoming more and more popular – in the first quarter of 2023, 87 percent chose this option. Customers who, after signing the settlement, continue to repay the loan, and in total, since the beginning of the provision of settlements, 77 percent. Customers who continue to repay the loan.

By the end of March 2023, 292.6 thousand customers of PKO BP and PKO Bank Hipoteczny applied for a mortgage loan suspension or loan repayment, and the total number of applied outstanding installments was 1,999 thousand, which is 46 percent. The maximum number of installments that will be suspended for all eligible clients.

Since the end of November 2022, PKO BP has been offering a new service in the field of deferred payments – “PKO I pay later”. In the first quarter of 2023, the service will gradually be provided to other groups of customers. At the end of March 2023, the service was used by 42.7 thousand. Customers, the total amount of granted limits exceeded PLN 34.6 million.

The Total Capital Ratio (TCR) of the PKO BP Group is 18.58%.

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PKO BP results in the first quarter of 2023 and their relationship to PAP consensus and past results:
Millions of Polish zlotys 1Q2023 consensus difference
interest result 417 4214.3 -0.6%
commission result 1103 1,221.3 -9.7%
total costs 1,985 1,999.8 -0.7%
reserve balance -339 -378.5 -10.4%
Neto result 1,454 1,369.7 6.2%
1Q2023 1 k 2022 difference 4Q2022
Millions of Polish zlotys y/o
interest result 417 3092 35% 4158
commission result 1103 1083 2% 1241
total costs 1,985 1828 9% 1,754
reserve balance -339 -504 -33% -374
Neto result 1,454 1426 2% 1,732

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