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Bank Pekao Strategy 2025 – 2027 ...the onlyway is up!
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Agenda 1 1 Trends 2 Our Mission and Vision. Pekao Position 3 Pillars and Strategic Directions 4 Strategic goals
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Strategic adaptation resulting from market trends 2 We will convert the conclusions from trends into specific strategic decisions and practical actions 1 Permanent variability of the environment 2 Demographics – a challenge for the entire economy 3 Evolution of banking from selling products to focusing on customer needs 4 Epochal technological revolution 5 Transformation of the economy breakthrough in investment
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2000 2005 2010 2015 2020 2025 Permanent variability of the environment 33 Global Economic Policy Uncertainty Index trade wars supply chain atomization cyber terrorism deregulation geopolitical frictions energy challenges societal polarization The strategy must be resistant to the changing environment and flexibly respond to customer needs
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Demographics – a challenge for the entire economy 44 Population in Poland by 2035 The age structure of the population will not change significantly in the strategy horizon. Nevertheless, the demographic crisis will deepen. The Central Statistical Office predicts a total decline in the number of people in Poland by ~1.4 m by 2035. Source: Central Statistical Office, Social Insurance Institution, Pekao 2024 2025 2026 2027 2028 2029 2035 pre-productive age productive age post-productive age 37.5 m 36.6m 36.1m -0.9m 2020 2024 + 37% 1.1 m customers <26 Pekao end of year 2024 +37% 2024 vs 2021 Record acquisition of young customers in 2021-2024 as a strong base for growth in the face of demographic challenges
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0 4 8 1 2 1 6 Wydatki na mieszkańca w tys. $² 2 0 3 0 2 0 2 4 G ene racja A Generation Z Millennials Generation X Babyboomer Older generations YoY preference for personalization is growing in all generations¹ +10 pp +11 pp +20 pp +18 pp +13 pp The evolution of banking from selling products to focusing on customer needs 551 S&P Global, 2025 Trends in Customer Experience & Commerce, 2024 vs 2023 Unique opportunities for personalized services and offers thanks to AI and the partnership with PZU
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An epochal technological revolution 66 Areas of banking that AI will change CUSTOMER SERVICE DATA MANAGEMENT PROCESS AUTOMATION RISK CYBERSECURITY HYPER PERSONALIZATION AI is changing the rules of the game – AI First approach will become the driving force of our growth, efficiency and improvement of skills of our employees
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Transformation of the economy breakthrough in investment 77 1 Annual average in the period 2025-2030, in relation to average demand/expenditures in the period 2021-2023 2 Gas, heating, electromobility, energy efficiency of buildings Source: Pekao analyses based on government documents, investment plans of companies and analysis of current expenditures in individual areas of the economy Estimated expenditures in the economy PLN bn 2024 2027 2030 630 855 1 000+36% Key growth areas resulting from large transformation programs1 ~40 bn PLN energy sector ~30 bn PLN green transformation – other areas2 ~30 bn PLN Central Communication Port, roads, railways ~60% increased demand for long-term commercial financing1 We will use Pekao established expertise in servicing businesses and corporations years 2021 – 2023
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Agenda 8 1 Trends 2 Our Mission and Vision. Pekao Position 3 Pillars and Strategic Directions 4 Strategic goals
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99 Our values, mission and vision say what kind of bank we want to be With you for life We support our clients in their life journey – from the first account to key decisions, from local business to international success. Thanks to the commitment of our employees and intelligent technologies, we combine the hundred-year-old tradition of Pekao with a dynamic view of the future. Simply Together Boldly Responsibly with Determination Openly Honestly First choice for today and tomorrow To be a universal, reference bank in Poland – a leader in intelligent financial technologies, supporting customers in their life and business journey. We create a workplace where employee passion and development translate into exceptional customer experiences. Mission Values the only way is upVision
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We are a bank with an established position on the Polish market and a wide range of market advantages 5.6 m current accounts Leader in net acquisition of current accounts in the retail segment (+6% y/y) 3.4 m mobile customers Dynamic growth in the number of mobile banking customers (+1,4 mln od 2020 r.) 1.1 m young Effectiveness in increasing the young customer base 478 branches Presence in almost every district - the source of competitive advantage +40 pkt satisfaction with PeoPay Continuous improvement in customer satisfaction with the PeoPay mobile application (vs. 2020) +67% GWP Increase in gross written premium (GWP) supported by the development of partnership with PZU Strong position in large corporations Every second large company in Poland is our client #2 in financing the economy PLN 187 bn gross loan volume at the end of 2024 PLN 334 bn of assets 16% TCR PLN 19 bn* in dividends 10* total payments in the last 10 years
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Agenda 11 1 Trends 2 Our Mission and Vision. Pekao Position 3 Pillars and Strategic Directions 4 Strategic goals
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We based our strategy on 3 pillars that will take us to a completely different dimension of banking 12 Growth Accessibility Efficiency PILLARS
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We will focus on growth in key segments and products, thanks to which we will improve our results and market shares 1313 Growth 1. Supporting the activity of our clients with sensitivity to changes occurring in the human life cycle 2. Using the partnership with the PZU Group and building a position of a growth leader in the bancassurance market 3. Integrating products from the Pekao Group (leasing, factoring) with responsibility for customer relations - especially in small, medium and microenterprises 4. Growth of the corporate banking business taking advantage of the economic momentum and the bank’s industry expertise 1.4 m young customers up to 26 years of age PLN 1 bn gross written premium TOP3 Leasing & Faktoring +700 k active customers GOALS 2027 1 leader in corporate banking
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1414 Accessibility 5. Integrated customer service model with top-quality conversational banking and optimized branch format 6. Customer and quality of service at the center of our attention to make contact with the bank a friendly experience We will make banking services more modern, convenient and tailored to the customer’s style TOP3 NPS in mass segments 72% share of remote sales 4.4 m active mobile customers GOALS 2027
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1515 Efficiency 7. Building an effective data ecosystem – integrated and effective management and financial reporting 8. Ergonomics of key processes based on continuous improvement 9. Aspirational organizational culture supported by dynamism of attitudes, decisiveness and the willingness to reach for new solutions We will increase operational efficiency thanks to fast and modern processes and an aspirational organizational culture 30% share of remote channels in sales of business loans x3,5 increase in the number of cloud systems 80% of employees using AI 70% digitalization rate of SME, MID and Corporates GOALS 2027
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ESG is an integral part of our business strategy 1616 1 Green finance: renewable energy sources, low-emission transport, energy-efficient construction, energy efficiency, circular economy, biodiversity, protection against pollution, protection of water resources 2 Compensation structures that ensure equal pay for the same work or work of equal value - the Bank uses the Korn Ferry/Hay methodology (levels and job families) for analysis, within which it compares the difference in pay ENVIRONMENT Achieving climate neutrality of the Pekao Group by 2050 Financing green projects with the amount of PLN 9 bn1 Development of products and a model of cooperation with clients supporting the sustainable transformation of operations SOCIETY We strive to ensure that at least 33% of the top management positions in the Pekao Group are held by women Pay gap in the Pekao Group at < 5%2 for comparable positions Maintaining a high level of employee engagement Maintaining volunteer activities and strengthening the bank’s presence in local communities Strengthening involvement in educational campaigns for customers CORPORATE GOVERNANCE Improving risk tools supporting customer assessment in the ESG area 90% of suppliers (participating in purchasing processes) declaring compliance with Suppliers’ Code of Ethics Building ESG competencies (comprehensive, profiled training programs)
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Towards the goal through actions 1717
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Growth | Supporting our clients’ activities with sensitivity to changes occurring in the human life cycle WHAT WILL WE DO? 1818 – We will expand products for young customers – tailored to their lifestyle, social relationships and needs. – We will create a comprehensive offer for customers who are active in their professional and private lives. – We will make it easier to manage shared finances - remotely and simply. – We will develop tools supporting personal finance planning and investments. – We will use the bank’s presence in smaller towns to support local customer activity. 1.4 m young customers < 26 years of age +700 k active customers GOALS 2027
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Growth | Leveraging the partnership with PZU Group and building a growth leader position in the bancassurance market 1919 – We will create a strong line of standalone insurance, not linked to banking products - as an extra value for the customer. – We will personalize the offer, thanks to which insurance will be adjusted to life events and the customer’s life cycle – recommended in real time. – We will enable fully remote purchase and management of insurance. – We will introduce insurance products for the business segment related to financing. PLN 1 bn gross written premium (GWP) x5 increase in GWP for standalone products WHAT WILL WE DO?GOALS 2027
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Growth | Integrating products from the Pekao Group (leasing, factoring) with responsibility for customer relations - especially in small, medium and microenterprises 2020 – We will fully utilize the wide product range of Pekao Group to support and enhance the product range of our clients. – We will highly position products such as leasing and factoring in order to increase their availability and reach our clients. – We will automate and streamline our processes so that our clients can access financing faster and focus on developing their business. TOP3 leasing and factoring x2 number of new factoring and leasing clients WHAT WILL WE DO?GOALS 2027
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– We will increase our firepower by fully mobilizing experts from business and risk to participate in the best transformational projects. – We will focus on forecasting needs in strategic sectors with long-term growth in mind. – We will improve limit models and decision-making processes for more efficient financing of strategic clients 1 leader in corporate banking 1 leader in public sector banking Growth | Growth of the corporate banking business taking advantage of the economic momentum and the bank’s industry expertise 2121 WHAT WILL WE DO?GOALS 2027
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Accessibility | Integrated customer service model with top-quality conversational banking and optimized branch format 2222 – We will introduce an integrated service model in banking channels to ensure continuity, simplicity and personalization for customers, regardless of the channel in which the process is carried out. – We will develop the interactive capabilities of PeoPay, Contact Center, Pekao24 using the latest technological solutions. – We will make Contact Center and conversational banking our strong point. – We will define a new role for branches, focusing on educational functions and consulting. While maintaining the network of branches, we will improve their format and optimize their space. 4.4 m mobile customers 72% share of digital sales x3 increase in customer interaction in the voice channel WHAT WILL WE DO?GOALS 2027
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Accessibility | Customer and quality of service at the center of our attention to make contact with the bank a friendly experience 2323 – We will monitor customer experiences holistically, not incidentally. – We will develop a service model that takes into accountthe changing customer needs. – We will simplify communication and increase the intuitiveness of digital solutions so that customers choose remote channels as their first option for contacting the bank. NPS TOP3 in mass segments WHAT WILL WE DO?GOAL 2027
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Efficiency | Building an effective data ecosystem – integrated and effective management and financial reporting 2424 – We will integrate the data environment to improve business processes. – We will create and implement the foundations of a data ecosystem that will enable the generation of synergies between AI, ML, BI/CRM systems and models. – We will build a new information management model that supports the implementation of strategic goals based on simplified and accelerated processes and dedicated tools. Implementation of the ecosystem foundations and start of work in the Data Driven model WHAT WILL WE DO?GOAL 2027
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Efficiency | Ergonomics of key processes based on continuous improvement 2525 – “We will simplify what we can. ” – We will implement a comprehensive Operational Excellence Model to continuously monitor and improve key processes. – We will accelerate credit processes for micro-entrepreneurs, and expand the possibilities in the self-service model. – We will digitize and automate key processes for enterprises. – We will build a flexible, scalable IT architecture that ensures rapid adaptation to changing business needs. – We will increase the number of cloud solutions. 30% share of remote channels in sales of business loans 70% digitalization rate of SME, MID and Corporates x3,5 increase in the number of cloud systems WHAT WILL WE DO?GOALS 2027
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Efficiency | Aspirational organizational culture supported by dynamism of attitudes, decisiveness and the willingness to reach for new solutions 2626 – We will build a culture in which we will act faster and think more ambitiously, and thus achieve specific results more efficiently. – We will support leaders who inspire and create space for action - they set ambitious goals, motivate teams and develop human potential. – We will invest in the competences of the future by creating an AI Competence Center to accelerate the implementation of new technologies throughout the organization. 80% of employees using AI >2x number of AI solutions at the bank 10% increase in work efficiency WHAT WILL WE DO?GOAL 2027
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Agenda 27 1 Trends 2 Our Mission and Vision. Pekao Position 3 Pillars and Strategic Directions 4 Strategic goals
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Macroeconomic scenario 2025-20271 Financial plan for 2025-2027 28 2025P 2026P 2027P GDP y/y % 3.9 3.5 3.2 Inflation (avg) % 4.3 2.6 2.5 Inflation (eop) % 2.9 2.8 2.5 WIBOR 3M (avg) % 5.49 4.20 3.64 Reference rate (eop) % 4.75 3.75 3.50 Maximum interest rate on loans (eop) % 16.50 14.50 14.00 EUR/PLN exchange rate (eop) 4.24 4.22 4.20 USD/PLN exchange rate (eop) 3.91 3.86 3.84 5,87 5,44 4,23 3,66 5,75 4,75 3,75 3,50 2024 2025P 2026P 2027P WIBOR 3M /parenleft.caseŚR/parenright.case % STOPA REFERENCYJNA /parenleft.caseEOP/parenright.case % 1 Macroeconomic forecast consistent with the PZU Group
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2929 We will use many levers to build the bank’s value Return on Equity (ROE) 21.2% > 18%* 2024 Interest rates decline Volumes Fees Development Costs Other 2027 • Increase in market share in strategic areas and products • Changing the revenue structure towards building a strong non-interest income • Safe risk profile • Investments in technologies that support experience of our employees • Return on equity optimization *Assuming the NBP reference rate of 3.5% at the end of 2027 Our goal is to achieve ROE of >18% despite the expected decline in interest rates*
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~34% Cash loans Micro loans MID + SME loans Mortgages Corporate and other loans NIM + 3-7 bps Above-the-market loan growth in strategic areas and products Penetration of insurance products Cross-selling Mikro loans Cash loans 2024 2027 MID and SME loans Mortgages Corporate and other loans PLN 187 bn + 6-8% ~66% ~62% ~38% 1 2 3 CAGR 2027 vs 2024 % ~34% Cash loans Micro loans MID + SME loans Mortgages Corporate and other loans NIM + 3-7 bps Above-the-market loan growth in strategic areas and products Penetration of insurance products Cross-selling Mikro loans Cash loans 2024 2027 MID and SME loans Mortgages Corporate and other loans PLN 187 bn + 6-8% ~66% ~62% ~38% 1 2 3 CAGR 2027 vs 2024 % 30 We will anchor dynamic growth with strong positioning in profitable segments Portfolio Growth and Evolution Growth Strategy vs Market Areas supporting growth of fee&commission income 30 Change in the portfolio structure will have a positive impact on net interest margin and will partially neutralize the impact of lower interest rates
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3131 Strong capital position will support dividend policy Target capital structure 13.0% 1.0% 2.0% 2027 14.9% 20.4% 24.0% 1.2% 2024 CET1 capital T2 capital MREL (SP and SNP) AT1 capital 8% • Safe capital position, management buffer above 3% • LR ratio above 5% • Safe liquidity profile, LCR and NSFR above 130% • Maintaining an attractive dividend policy in the range of 50-75% • Efficient capital structure (AT1 and T2 instruments) • Regular presence on the local and European debt market
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Key strategic aspirations in the perspective of 2027 32 1 Dividend payout ratio ROE >18% C/l <35% CoR 65-75 bps Dividend1 50-75%
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Legal disclaimers 3333 This presentation is for informational purposes only. The presentation does not contain a complete or comprehensive financial or commercial analysis of Bank Pekao or Bank Pekao Group. Nor does it present its position and prospects in a comprehensive manner. The presentation in no way constitutes and should not be regarded as an offer to sell, a solicitation of subscriptions or an inducement to buy or subscribe for any Bank Pekao securities. In particular, it does not constitute a recommendation to make investment decisions related to shares or other securities of Bank Pekao or its subsidiaries. This presentation may contain forward-looking statements. However, they must not be perceived and treated as an assurance or projection of expected future performance of Bank Pekao or Bank Pekao Group. Statements regarding expectations of future financial performance are not guarantees of future performance. They are based on the current expectations or views of the Management Board of Bank Pekao and depend on a number of factors that may cause actual results to differ from those described in this document. Many of these factors are beyond the company’s knowledge, awareness and control or ability to predict. No assurances or representations can be made on the basis of this presentation. Bank Pekao, its directors, officers or representatives of such persons shall not be liable on any grounds whatsoever in connection with any use of this presentation or the information contained herein. In addition, no information contained herein constitutes a commitment or representation by Bank Pekao, its officers, directors, Shareholders, subsidiaries or representatives of such persons. The presentation is not intended for distribution in the territory of countries where the dissemination of the information contained therein may be restricted or prohibited by law.
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