FINANCIAL RESULTS
Przemek Gdański
President of the BNP Paribas Bank Polska Management Board
For Bank BNP Paribas, 2024 was a challenging but successful year. It confirmed that we are on the right track and well prepared for new challenges. The first dividend payment in the bank’s history came as a significant corroboration of the maturity of our business model. It is our ambition to establish ourselves permanently among companies that reward their shareholders fairly. In 2024, we generated a historically high net banking income, we recorded increases in core income categories, and our net profit was also higher than ever before. Our financial performance is a consequence of shrewd decisions and thoughtful development of our offering. We focus staunchly on the development of sustainable financing, the total volume of which reached PLN 10.2 billion at the end of 2024. Our priority remains the acquisition of new Customers and continued improvement of their daily experience so that they think of Bank BNP Paribas as their bank of first choice. We are successfully rolling out new products and services – innovative and tailored to the needs of our Customers. The development of our digital offering translates into an increasing use of remote channels, as demonstrated by the statistics on transactional activity and mobile banking usage.
Key figures
Despite the unpredictable and unfavourable environment, geopolitical instability, and low level of investments in Poland, the banking sector has had a year in which it achieved a record level of net profit, 51% higher than in 2023 (according to NBP data). Banks’ activities were impacted by high interest rates, the inflation rate and the need to continue creating provisions related to the CHF loan portfolio.
The Group continued the implementation of the GObeyond strategy for 2022-25, which started in 2022, and which focuses on organic growth while maintaining a responsible approach to risk management.
Thanks to our business model, consistently implemented strategy and lower although still significant impact of legal risk related to the CHF loan portfolio, we generated a net profit of PLN 1.3 billion, i.e. 133%, higher than in 2023. The Group recorded an increase in the net banking income and improved its capital position. Despite inflationary pressure, the increase in operating costs was under control.
Net profit
PLN 2,358 million-
-
133 %
y/y
-
The impact of legal risk related to the CHF loan portfolio burdened the Group’s results with an amount of nearly PLN 800 million in 2024.
Statement of profit or loss
The Group’s net banking income was higher by 6.5% compared to 2023 and amounted to PLN 7.8 billion. Among significant factors influencing the level of the net banking income in 2024 and 2023 were the consequences of changes in the macroeconomic situation, including, above all, the level of inflation and the central banks’ interest rate policy, which affected, among other things, economic activity and the situation on the financial markets. The persistently high level of interest rates had a positive impact on the level of margins and net interest income achieved by banks, as did the excess liquidity of the banking sector resulting from the good liquidity situation of Customers and the continuing moderate demand for credit.
Result on banking activity
-
-
7,283 PLN million
2023
-
7,753 PLN million
2024
-
6 %
y/y
-
Net interest margin in relation to average assets amounted to 3.6% and was 0.1 p.p. higher y/y, despite negative impact of credit holidays.
An increase in the cost base became apparent in 2024 compared to 2023, due to the impact of inflationary processes and the Group’s ongoing investments. Elements of the regulatory environment that negatively affected the level of costs in 2024 compared to 2023 included an increase in the value of the BGF contribution by PLN 20 million, i.e. by 16%. The Cost/Income ratio calculated on the basis of reported volumes was 0.7 p.p. higher compared to 2023.
The high quality of the loan portfolio and timely servicing of loans translated into a low cost of risk. The share of NPLs in the gross loans and advances portfolio (as defined by the Group in the Management Board’s Report on the Activities) was 3.2% at year-end 2024.
The Group’s return on equity (ROE) was more than twice as high as in 2023 and stood at 16.9%.
Statement of financial position
Total assets
-
-
161,026 PLN million
2023
-
167,540 PLN million
2024
-
4 %
y/y
-
The Group’s total assets as at the end of 2024 were higher by PLN 6.5 billion compared to the end of 2023. The most significant change in the Group’s asset structure compared to the end of 2023 was an increase in the share of the securities portfolio and the cash and balances at the Central Bank, and a decrease in the share of receivables from banks and the loan portfolio (sum of portfolios measured at amortized cost and at fair value).
In 2024, there was a further increase in the total value of Customer deposits. This trend was noticeable in the segment of Retail Customers (+10% y/y), with a slight decrease in the Institutional Customers segment (-1% y/y). The Customer deposit structure also changed – the share of term deposits further increased at the expense of current accounts (31% at the end of 2022, 32% at the end of 2023 and 33% at the end of 2024).
At the end of 2024, net loans and advances to Customers (the sum of portfolios measured at amortized cost and measured at fair value) slightly decreased by PLN 0.4 billion, compared to the end of 2023. The portfolio of Institutional Customers increased by 2% y/y, while the volume of loans to Retail Customers decreased by 5%, mainly as a result of a decline in the value of the mortgage loan portfolio.
The Tier 1 capital ratio at the end of 2024 was 13.80%, and the total capital ratio was 17.20%. Both ratios remain significantly above regulatory requirements.
| 2022 | 2023 | 2024 | Change 2024/2023 | ||
|---|---|---|---|---|---|
Statement of financial position (PLN million)
|
Total assets | 150,109 | 161,026 | 167,540 | 4.0% |
| Total net loans and advances to customers (sum of portfolios measured at amortised cost and measured at fair value through profit or loss) | 88,631 | 86,248 | 85,854 | (0.5%) | |
| Deposits | 119,529 | 126,714 | 130,475 | 3.0% | |
Statement of profit or loss (PLN million)
|
Net profit | 441 | 1,013 | 2,358 | 132.9% |
| Net profit normalized1 | 1,166 | 967 | 2,415 | 149.6% | |
| Net banking income | 5,352 | 7,283 | 7,753 | 6.5% | |
| Result on provisions for legal risk related to foreign currency loans | (740) | (1,978) | (796) | (59.8%) | |
| Net impairment losses on financial assets and contingent liabilities | (275) | (34) | (246) | 616.3% | |
| General administrative expenses & Depreciation and amortization | (3,038) | (3,096) | (3,352) | 8.3% | |
Financial ratios
|
Net ROE | 3.9% | 8.2% | 16.9% | 8.7 p.p. |
| Net ROE normalized1 | 10.2% | 7.7% | 17.3% | 9.5 p.p. | |
| C/I | 56.8% | 42.5% | 43.2% | 0.7 p.p. | |
| C/I normalized1 | 42.9% | 41.1% | 41.0% | (0.1 p.p.) | |
| Net interest margin | 2.46% | 3.43% | 3.56% | 0.13 p.p. | |
| Cost of risk | (0.30%) | (0.04%) | (0.28%) | (0.24 p.p.) | |
| Total Capital Ratio (TCR) | 15.55% | 16.67% | 17.20% | 0.53 p.p. | |
- due to the change in the recognition of the impact of legal risk arising from CHF mortgage litigation from 1 January 2023 in accordance with IFRS 9, restated values are presented in column 2022 for the categories Net Assets and Loans and advances to Customers
- normalized values calculated excluding credit holidays in 2022-2024
