Slides
Page 1
Warsaw, August 7th, 2025 1H’25 Financial Results Acceleration of loan portfolio growth STRESS 2025 TEST
Page 2
Acceleration of loan portfolio growth Recurring net profit up 13% y/y Lending revival with 6% y/y loan portfolio growth Strong growth and innovation in digital channels Robust capital position 11
Page 3
Key achievements - financials Business achievements Macro & Financial results Appendix 2
Page 4
Acceleration of loan portfolio growth Net profit reported ROE C/I incl./excl. BGF Tier 1 Assets Loan portfolio COR NPL PLN 3.3 bn 20.6% 35.7%/ 31.8% 15.6% PLN 340 bn +7% y/y PLN 193 bn +6% y/y 40 bps 4.5% 33
Page 5
Double-digit growth in lending in key strategic segments Cash loan volume Micro financing volume PLN bn PLN bn 2Q 24 2Q 25 2Q 24 2Q 25 12.2 4.9 13.5 5.5 +11% +12% 4 MID+SME financing volume PLN bn 2Q 24 2Q 25 37.7 42.6 +13%
Page 6
5 All our businesses contributed to 1H’25 performance Retail banking New sales of cash loans (net) Income from FX transactions Acquisition in MID segment New sales of Micro financing Leasing portfolio New sales of SME financing Active mobile banking customers CustodyMID+SME financing volume +19% +16%+22% +16% +15%+14% +9% +7%+13% Enterprise banking Corporate banking Note: Enterprise Banking segment consists of former MID and SME segments 1H’25 (vs 1H’24)
Page 7
Key achievements - financials Business achievements Macro & Financial results Appendix 6
Page 8
Good start to the new strategy of Bank Pekao 7 ROE (%) C/I (%, incl./excl. BGF) Dividend 2 (%) Target 2027 >18 1 <35 50-75 65-75CoR (bps) Execution 1H’25 20.6 35.7/31.8 75 3 40 Strategic goals of Bank Pekao 1 Assuming the NBP reference rate of 3.5% at the end of 2027 2 Dividend payout ratio 3 Dividend payout ratio from 2024 profit Bank Pekao Strategy 2025-2027 Growth Accessibility Efficiency ...the onlyway is up!
Page 9
8 We systematically expand our offer for our clients Retail banking • “Superpowers on the Go” Campaign – a broad and comprehensive package of solutions designed for both new and existing bank customers, supporting them while traveling as well as in everyday life • “Save-It Stories” – a series of stories aimed at young children and their parents, focused on financial education delivered in a simple and friendly manner • Increased availability of mortgage loans and SMEX express loans • Higher guarantee limits under the Investmax program for SME clients • New application in the Self-Service Zone on PekaoBiznes24 – allowing limit changes for credit and charge cards for SME clients • Ability to make deposits using debit cards at Euronet ATM network – an additional 4,700 deposit machines available for corporate client • Introduction of identity verification via „selfie” method in the Pekao360 Biznes app • Launch of cash deposit service using QR codes at all bank branches Enterprise & Corporate banking
Page 10
9 Good results in retail – driven by the execution of a strategy that supports the customer on every journey Young people continue to choose us – we support them in taking their first steps We are growing in Bancassurance – helping clients protect what matters most to them Dynamic growth in Consumer Finance – closing the gap with the market • 5th anniversary of PeoPay KIDS - supported by a children’s account promotion and an audiobook about saving • Growth of the young customer base (ages 0–26) by 70k y/y in 6M’25 – we are on track to achieve our strategic goal (from 1.1 million in 2024 to 1.4 million in 2027) • Every third newly acquired client is under the age of 26 Record-high 14.5% market share of Pekao in the protection insurance segment in Poland • +80% y/y growth in sales of motor insurance policies • +76% y/y growth in sales of travel insurance policies • +58% y/y growth in insurance premiums • +24% y/y volume of new agreements in 6M’25 • +19% y/y net sales of cash loans • +11% y/y cash loan portfolio growth with a higher pace than the banking sector
Page 11
10 We are where our clients are – even at the airport Ring, account, card… and the client can set off on vacation fully equipped by the Bank Account opening, credit card issuance, and payment ring distribution at major airports in Poland • Pekao stands in duty-free zones • 7 days a week, from June to September • For new and existing clients: account opening, debit card, credit card, and PeoPay app setup available • Ability to pay with the ring immediately after funding the account - debit card available instantly in the app • Airports: – Warsaw – Kraków – Poznań – Gdańsk – Wrocław – Katowice
Page 12
Innovations that genuinely support customers on the go – as the first in Poland, we create solutions tailored to their lifestyle 11 The most comprehensive solutions for travelers Low exchange rate guarantee with the account card and the Credit Card with Wisent 0% installments on everything – up to PLN 3,000 in the Platinum Package with the Credit Card with Wisent Up to PLN 600 cashback for transactions made while traveling Bank fees for cash withdrawals with the gold account card worldwide The only bank with the Miles & More program Highway toll payments in Poland and Europe via the PeoPay app 3GB data package for 15 days in over 120 countries Deals with Wisent discounts for travelers Discount on travel insurance Innovative payments with the payment ring TRAVEL CHEAPER WITH THE PAYMENT RING
Page 13
12 Style, technology, scale – Bank Pekao sets a new standard in payments • The only full-service payment ring support in a mobile banking app in Poland – activation, management, and security all in one place • Intuitive and convenient setup – customers can manage their ring independently without visiting a branch • Wide range of styles – over 20 ring models in various colors and finishes, perfectly matching every customer’s taste • Full compatibility – the only bank in Poland offering the option to link both Mastercard and Visa cards • Speed and convenience – pay in seconds with a single hand movement, completely contactless • No-compromise technology – no battery, no charging, waterproof – just wear it and pay • Style and functionality – a modern accessory that combines everyday practicality with a fashion trend PAGOPACE LAKS
Page 14
13 With us, travel is a pleasure – tickets for miles, tolls without queues, internet in 120 countries • New: e-vignettes – fast and convenient highway toll payments without leaving your car • Support for highways in Poland – A1, A2, A4 – no queues, no stress • Payments for public transport tickets and parking – all in one app • Available in the PeoPay app and Pekao24 online service – full control from your phone Pay with the Credit Card with Wisent and fly for miles! • Redeem airline tickets for collected miles • Miles earned for nearly all card transactions • Free Business Check-in at Chopin Airport • Program includes 35 airlines, including LOT Collect miles for everyday purchases – fly to Paris without spending a single zloty on the ticket Comfortable car travel without waiting, in Poland and across Europe The e-SIM card is perfect for travel, providing data transfer access in over 120 countries Parking 6 countries Bulgaria, Czech Republic, Slovenia, Switzerland, Hungary, Slovakia Where? PeoPay app Pekao24 online service What? E-vignettes – convenient highway toll payments Highways in Poland A1, A2, A4 Public transport tickets NEW Free 3 GB of data 15% discount on the purchase of additional FlexiRoam data packages with the FlexiRoam app, valid for 15 days from package activation in over 120 countries worldwide e-SIM for the Credit Card with Wisent
Page 15
Continued growth in active mobile banking customers – 70,000 new active users added in 2Q’25 Active mobile banking customers m PEX digital sales of total % 2Q 24 2Q 25 2Q 24 2Q 25 3.3 83 3.6 89 +9% +6 pp 14 3.4 mln Number of active PeoPay users (+11% y/y)
Page 16
We consistently support development of our clients 15 > EUR 6 bn THE OFFSHORE WIND FARMS BAŁTYK 2 AND BAŁTYK 3 INVESTMENT LOAN WITH ADDITIONAL CREDIT FACILITIES Original Lender PLN 425 m INVESTMENT FACILITIES Lender PLN 3.7 bn TERM, CAPEX AND WORKING CAPITAL FACILITIES Bookrunner and MLA PLN 400 m 7Y BONDS Co-Arranger, Dealer EUR 300 m INVESTMENT FACILITIES, TERM LOAN & RCF INCREASE Coordinator, MLA, Agent & Security Agent PLN 300 m Bond issue programme Programme Agent PLN 1 bn SUSTAINABILITY-LINKED BONDS 5Y BONDS Global Coordinator, Co-Arranger, Dealer Current banking services Serving bank Transactions Awards – Bank Pekao has been recognized for the fourth consecutive time in the prestigious “Best Trade Finance Survey” conducted by Euromoney magazine. The bank secured first place overall in the trade finance services category and also won in the technology subcategory. City of Łódź City of Rzeszów
Page 17
16 Key achievements - financials Business achievements Macro & Financial results Appendix
Page 18
2025 remains a year of investments, but consumption results will surprise on the upside Sentiment in the Polish economy 17Source: Bank Pekao, Statistics Poland, NBP – We expect the Polish economy to grow by 4% in 2025 due to acceleration in investments and increased demand from Poland’s main trading partners. The Q1 result likely overestimates the strength of investments, but there are sufficient arguments to anticipate a significant pick-up in investment activity this year. – Consumption could be the dark horse this year. Retail sales results from the first half of the year have generally surprised on the upside, consumer sentiment has improved, and inflation is expected to be 1 percentage point lower than our assumptions at the beginning of the year. Consequently, real income will be approximately 1% higher. Industrial production % y/y, breakdown by destination Real wage growth % y/y, knowledge status at different points in time -50 -40 -30 -20 -10 0 10 20 2015 2016 2017 2018 2019 2020 2016 2016 2016 2016 2025 Business climate Consumer sentiment -15 -10 -5 0 5 10 15 20 25 2022 2023 2024 2025 -8 -6 -4 -2 0 2 4 6 8 10 2020 2021 2022 2023 2024 2025 Jan ’25 Domestic demand Investments Exports Jul ’25 -50 -40 -30 -20 -10 0 10 20 2015 2016 2017 2018 2019 2020 2016 2016 2016 2016 2025 Business climate Consumer sentiment -15 -10 -5 0 5 10 15 20 25 2022 2023 2024 2025 -8 -6 -4 -2 0 2 4 6 8 10 2020 2021 2022 2023 2024 2025 Jan ’25 Domestic demand Investments Exports Jul ’25 -50 -40 -30 -20 -10 0 10 20 2015 2016 2017 2018 2019 2020 2016 2016 2016 2016 2025 Business climate Consumer sentiment -15 -10 -5 0 5 10 15 20 25 2022 2023 2024 2025 -8 -6 -4 -2 0 2 4 6 8 10 2020 2021 2022 2023 2024 2025 Jan ’25 Domestic demand Investments Exports Jul ’25
Page 19
Inflation finally at target, MPC set to continue rate cuts CPI inflation with forecast NBP interest rate with expectations 18Source: Bank Pekao, Statistics Poland, NBP, Refinitiv, Bloomberg – We haven’t seen such favorable conditions for inflation to return to target in years: a strong PLN, lower energy carrier prices, downside surprises in recent inflation data, wage growth slowing, and – despite everything – a globally disinflationary environment. As a result, our projected inflation path has shifted downward: we now expect inflation to reach target already in the summer of this year. – The dovish pivot of the Monetary Policy Council (MPC) is a fact. However, the MPC is known for its unpredictability, and the path to lower rates is likely to be bumpy and gradual. In our view, interest rates will decline by an additional 50 basis points this year, with a terminal rate of 3.5%. % y/y % CPI inflation Core inflation 0 1 2 3 4 5 6 7 2020 2021 2022 2023 2024 2025 2026 NBP reference rate Pekao forecast Consensus Market valuation 0 2 4 6 8 10 12 14 16 18 20 2018 2019 2020 2021 2022 2023 2024 2025 2026 CPI inflation Core inflation 0 1 2 3 4 5 6 7 2020 2021 2022 2023 2024 2025 2026 NBP reference rate Pekao forecast Consensus Market valuation 0 2 4 6 8 10 12 14 16 18 20 2018 2019 2020 2021 2022 2023 2024 2025 2026
Page 20
54,180 99,331 56,954 107,045 68,629 13,516 42,583 85,906 53,175 101,538 Double-digit growth dynamics in key loans – cash loans +11% and MID+SME loans +13% Retail loan volumes1 Corporate loan volumes2 PLN m PLN m Jun 2024 Mar 2025 Jun 2025 Jun 2024 Mar 2025 Jun 2025 66,014 12,178 37,691 81,879 67,915 12,966 40,696 84,609 +4.9% +7.8% 191 Gross loans 2 Gross loans, Corporate and Enterprise segments including leasing and factoring, excl. BSB and reverse repo transactions – Total loans increased by 6% y/y – +5% y/y growth in retail loan portfolio, including: • +11% y/y growth in cash loan volume with PLN 2 bn in new net sales in 2Q’25 (+14% y/y) • +4% y/y growth in mortgage loan volume with PLN 2.8 bn in new mortgage sales in 2Q’25 (+16% y/y) – Corporate loans up 8% y/y. Strong loan growth for enterprises (MID + SME) of 13% y/y and large corporate loan growth of 10% y/y 7,460 7,5083,761 7,6673,687 3,728 Consumer loans PLN mortgage loans MID+MŚPOther retail loans Corporate loans Public sector +11.0% +13.0%
Page 21
116,317 124,015 Increase in total deposit base by 9% y/y and increase in volume of investment funds by 29% y/y Customer retail savings Corporate deposits PLN m PLN m Jun 2024 Mar 2025 Jun 2025 Jun 2024 Mar 2025 Jun 2025 152,983 145,223 28,236 34,658 36,513 153,973 +6.0% +29.3% +11.9% 20 – Total deposit base increased by 9% y/y, including retail deposits up 6% y/y – Record net sales of investment products exceeding PLN 10 bn in 1H’25 (+11% y/y) Retail deposits Mutual funds (Pekao TFI) 130,118
Page 22
6,241 6,007 6,860 4.19 4.27 Effect of payment moratoria 4.22 4.24 4.23 3,156 -234 2,922 3,261 3,380 +81 3,461 Average W IB O R 3M 5.86% 5.86%5.86% 5.60% 5.85% 5.35%5.86% +4 bps+8 bps+9.2%+9.9% 3,414 4.29 -234 3,446 4.26 X X Dynamics excluding effect of payment moratoria Increase in NII by ~10% y/y and growth in adjusted net interest margin despite lower market rates Net interest income Net interest margin (adjusted for effect of payment moratoria) PLN m % 21 2Q 24 3Q 24 4Q 24 1Q 25 2Q 252Q 24 3Q 24 4Q 24 1Q 25 2Q 25 1H 24 1H 251H 24 1H 25
Page 23
299 324 6.19% 6.12% 267 290 2.23% 2.06% +8.1% +8.4% 325 6.07% 270 2.24 % 277 2.22% 318301 6.24 % 306 6.25% 6.19% 28 5 2.18% Interest on liabilitiesInterest on assets (without payment moratoria effect) +8.0% +7.9% 323 6.16% 288 2.11% 292 2.01% Increased business scale and lower cost of financing liabilities Interest-bearing assets Interest-bearing liabilities PLN bn PLN bn 22 2Q 24 3Q 24 4Q 24 1Q 25 2Q 252Q 24 3Q 24 4Q 24 1Q 25 2Q 251H 24 1H 25 1H 24 1H 25
Page 24
Limited sensitivity to interest rate changes 23 – Natural sensitivity to falling interest rates resulting mainly from non-interest bearing deposits (~20-25 bps NIM decline for 100 bps lower rates) – Constantly implemented hedging strategy through derivatives (~20 bn) – Dominance (~90%) of periodically fixed rate in mortgage sales, share in the entire portfolio ~34% – In 2025, revaluation of ~25% of the bond portfolio - positive impact on NIM up to 10 bps – Actual sensitivity of interest income to rate cuts is influenced by possibility of adjusting interest rate on term deposits Interest rate risk profile Assets Liabilities Capital Treasury bonds/covid bonds Fixed rate/secured mortgages Current accounts Other deposits Other interest-bearing assets Other liabilities Exposure to interest rate changes ~20% of assets VARIABLE rate FIXED rate (inc. periodically fixed rate ) FIXED rate (for falling interest rates) VARIABLE rate (economically)
Page 25
Increase in net fee and commission income by ~10% y/y Net fee and commission income PLN m 24 – Growing contribution of capital market-related income, including asset management, due to growth in investment fund assets – Positive effects of distribution of treasury bonds (PLN 7.2 bn in net sales in 1H’25) – Increase in loan-related fees driven by growing economic Loans Cards FX commercial fees Bank account and other feesAsset management & brokerage 7874 93 705 697 776 713 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 +9.8% +4.5% 150 81 142 179 145 174162 146 179 152 206 184 134 73 +8.7%+5.8% +6.2%+1.9% +33.1% +28.5% +6.7% +6.7% -6.2% +3.1% r/r r/r 732 146 172 176 165 1H 24 1H 25 156 292 281 344 292 1,365 361 159 309 367 301 1,497 +9.7% 86 765 163 189 191 136
Page 26
Personnel costs Non-personnel, D&A costs 1,616 1,632 963 1 ,073 2,579 2,705 1H 24 1H 25 36.7 35.7 1H 24 1H 25 -1.0 p p 275 376 BGF and PFSA charges +4.9% 883 778 912 458 459 516 1,341 1,237 1,428 2Q 24 3Q 24 4Q 24 2Q 25 +2.6% +36.7% 35.3 30.8 32.8 2Q 24 3Q 24 4Q 24 1Q 25 -2.3 p p 26350 792 537 1,329 1Q 25 38.5 2Q 25 33.0 840 536 1,376 Personnel costs Non-personnel, D&A costs 1,616 1,632 963 1 ,073 2,579 2,705 1H 24 1H 25 36.7 35.7 1H 24 1H 25 -1.0 p p 275 376 BGF and PFSA charges +4.9% 883 778 912 458 459 516 1,341 1,237 1,428 2Q 24 3Q 24 4Q 24 2Q 25 +2.6% +36.7% 35.3 30.8 32.8 2Q 24 3Q 24 4Q 24 1Q 25 -2.3 p p 26350 792 537 1,329 1Q 25 38.5 2Q 25 33.0 840 536 1,376 Cost/Income ratio at 35.7% Operating costs Cost/Income (incl. BGF) PLN m % 25 – Increase in personnel expenses in 1H’25 mainly due to inflation-linked salary indexation – Increase in non-personnel expenses and depreciation by 11% in 1H’25 – Increase in BGF and PFSA contributions by 37% y/y in 1H’25 – Cost/Income ratio (incl. BGF) at 35.7% in 1H’25
Page 27
Cost of risk below the Strategy assumptions Cost of risk PLN m bps 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 2Q 24 3Q 24 4Q 24 1Q 25 2Q 251H 24 1H 25 51 232 43 198 58 272 26 – Cost of risk at 48 bps in 2Q’25 – Cost of risk in the corporate segment impacted by the default recognition of a single client – Low cost of risk in the retail segment 1 Segment division excluding ex-Idea Bank bps1 Group Business entities Individual clients 2Q 24 1Q 25 2Q 25 51 48 33 78 85 44 7 35 33 153 384413 48 231
Page 28
Stable asset quality NPL ratio1 NPL coverage ratio % % 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 2Q 252Q 24 3Q 24 4Q 24 1Q 25 4.7 4.2 4.2 3.7 4.54.5 4.14.0 75 7171 27 – NPL ratio below 5% – Stable coverage ratio 1 Ratio for non-financial sector at 06’25 – 4.6% 20 Pekao excl. Idea Pekao total 1818 54 5353 81 25 56 75 19 56 ex-Idea portfolio (covered by BGF guarantee) Underlying NPL NPL coverage: Stage 3 NPL coverage: Stage 1-2 Group Business entities Individual clients 0.40.50.5 0.5 Business entities Individual clients 62 99 13 32 49 67 2Q 24 1Q 25 2Q 25 4.2 4.54.5 5.4 6.36.2 2.32.52.8 4.5 4.0 0.5 71 17 54
Page 29
Strong capital position – capital surplus over 5 pp. Dividend potential in line with the Strategy (50-75% of net profit) CET 1 Total capital adequacy ratioTier 1 % %% 8.1 11.6 9.610.0 13.5 11.5 15.6 17.2 15.6 +7.5 pp +5.6 pp+6.0 pp 28Note: Criterion for paying out up to 50% of net profit is the minimum requirement for the Group increased by the value of the target level of the countercyclical buffer of 2 pp. Criterion for paying out up to 75% of profit is additional share of NPLs in the portfolio of receivables from the non-financial sector at a level of up to 5%. Minimum requirements 2025 Payment criterion up to 50% / 75% of net profit Pekao Group Minimum requirements 2025 Payment criterion up to 50% / 75% of net profit Pekao Group Minimum requirements 2025 Payment criterion up to 50% / 75% of net profit Pekao Group
Page 30
Minimum requirement for own funds and eligible liabilities (MREL) MREL % MREL-TREA requirements Jun 2025 MREL-TEM requirements Jun 2025 17.0 1.9 5.6 0.3 18.9 5.922.1 0.4 9.8 0.2 22.5 10.0 29 – Total MREL-TREA requirement is 18.9%1, while subordinated MREL-TREA requirement is 17.0%1 of total risk exposure – Total MREL-TEM requirement is 5.9%, while subordinated MREL-TEM requirement is 5.6% of total exposure measure – Both total and subordinated MREL-TREA and MREL-TEM requirements are met subordinated MREL instruments unsubordinated MREL instruments 3.6 % Of which combined buffer requirement 1 Taking into account combined buffer requirement of 3.55 pp.
Page 31
Recurring net profit up 13% y/y Net profit generation PLN m 2Q 24 3Q 24 4Q 24 1Q 25 2Q 251H 24 1H25 30 – +13% y/y growth of recurring net profit in 1H’25 mainly due to: • increase in net interest income (+10% y/y) • increase in net fee & commission income (+10% y/y) • increase in loan (+6% y/y) and deposit volumes (+9% y/y) • higher NIM (+8 bps y/y) – RoE at 20.6% – Cost/Income ratio (inc. BGF) at the level of 35.7% Adjusted dynamics Includes (net amounts): – effect of payment moratoria (2Q’24: -PLN 190 m, 4Q’24: +PLN 66 m ) – CHF related provisions (1Q’24: -PLN 37 m, 2Q’24: -PLN 206 m, 3Q’24 –PLN 56 m, 4Q’24: -PLN 370 m; 1Q’25: -PLN 49 m; 2Q’25: -PLN 309 m) – provisions related to consumer protection (3Q’24: -PLN 11 m, 4Q’24: -PLN 41 m, 2Q’25: -PLN 108 m) – BGF charges (1Q’24: -PLN 239 m, 1Q’25: -PLN 307 m; 2Q’25: -PLN 26 m) – costs of PFSA (1Q’24: -29 m, 3Q’24: -PLN 3 m, 1Q’25: -PLN 35 m) 2,936 3,286 1,8281,419 1,612 1,685 1,601 -701 +13%+13% 3,637 4,120 1,815 1,898 1,958 2,076 2,044 -834 -396 -70 -346 -391 -443
Page 32
Acceleration of loan portfolio growth Recurring net profit up 13% y/y Lending revival with 6% y/y loan portfolio growth Strong growth and innovation in digital channels Robust capital position 3131
Page 33
Key achievements - financials Business achievements Macro & Financial results Appendix 32
Page 34
RETAIL BANKING: Record quarterly sales of cash loans 33 Cash loan volume growth Market shares - consumer loan portfolio in PLN New sales of cash loans1 PLN m % PLN m 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Dec 23 Dec 24 Jun 25 7.3% 489 377 304 313 1,219 1,275 1,299 1,407 1,708 1,652 1,603 1,720 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 +14% 12,178 12,966 Jun 24 Mar 25 Jun 25 +11% 83% 89% 86% 88% 89% Sales in electronic channels ² Sales in branches Sales in electronic channels 1 Net sales – solely new money 2 Share in number 13,516 371 1,584 1,956 – Record quarterly cash loan sales of ~ PLN 2 bn (+14% y/y) – Noticeable acceleration in portfolio growth dynamics: +11% y/y and +6% YTD – Record cash loan sales via electronic channels, with 89% of agreements signed in 2Q’25 – In 2Q’25, the marketing campaign “Boldly Pursue Your Plans” supported loan sales by promoting an offer ranked among the market’s top deals
Page 35
34 RETAIL BANKING: Increase in mortgage loan sales by 16% y/y PLN mortgage volume growth Market share development in total mortgage New sales of mortgage loans PLN m % PLN m 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% Dec 23 Dec 24 Jun 25 13.5% 66,014 67, 915 Jun 24 Mar 24 Jun 25 +4% +16% 2,383 2,098 2,570 2,425 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 68,629 2,768 – Bank Pekao awarded winner of the “Golden Banker” 2025 ranking in the mortgage loans category as the “Mortgage Multitool” – Mortgage loan portfolio growth of 4% y/y – New edition of the settlement program for clients with CHF-denominated loans – 8.2 ths settlements concluded since the launch of the “Settlement 2%” program
Page 36
RETAIL BANKING: A surge of new offerings in accounts and payment cards, alongside record sales of accounts for affluent clients 35 Number of individual customers Current accounts: gross sales Gross sales of new credit cards ths ths ths 6,488 6,798 6,780 2Q 24 1Q 25 2Q 25 +5% +290 ths Increase in number of individual customers y/y 141 142 123 133 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 25 22 21 22 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 20 125 – Bank Pekao is the first bank in Poland to implement on a large scale the new payment standard using a payment ring (no wallet, no phone, no charging) – The widest offer for travellers – Miles & More program, eSIM, e-vignettes, discounts, travel insurance, and low exchange rate guarantee on account cards and the Credit Card with Wisent – Very strong sales of new Premium Accounts – over 21,000 accounts in 1H’25 (+9% y/y)
Page 37
36 RETAIL BANKING: Further record sales of investment products and sustained strong growth of deposits Retail deposits Investment products: AUM Investment products: net sales² PLN m PLN m PLN m Other investment products¹ Investment funds 145,223 152,983 153,973 2Q 24 1Q 25 2Q 25 +6% 29,367 35,799 37,705 24,243 32,714 38,01953,610 68,513 75,724 2Q 24 1Q 25 2Q 25 +41% 4,384 4,536 3,767 4,901 5,270 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 +20% – Record sales of investment products exceeding PLN 10 bn net in 1H’25 – Strong growth dynamics of total deposit balances held by retail clients (including Private Banking clients) and business clients – PLN 167.3 bn at the end of 2Q’25 (+6% y/y) 1 Other investment products include structured products, bonds, insurance investment products for retail clients and Private Banking, PPK 2 Net sales of total investment products of Retail individual and Private customers
Page 38
37 ENTERPRISE BANKING: Increase in MID+SME financing volumes by 13% y/y Sales of SME financing Financing volumes Customer acquisition PLN m PLN m # Loans Leasing and Factoring MID Enterprises SME 26,689 29,134 30,578 11,002 11,563 12,005 37,691 40,696 42,583 Jun 24 Mar 25 Jun25 +13%+15% 1,037 1,046 996 2Q 24 1Q 25 2Q 25 1,094 1,022 954 1,174 646 529 685 545 1,740 1,551 1,639 1,719 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 1,281 720 2,001 – Increased availability of mortgage loans and SMEX express loans – Raised guarantee limits under the Investmax program – New application in the Self-Service Zone on PekaoBiznes24, enabling SME clients to independently change limits for credit and charge cards
Page 39
Net profit generation path in 1H’25 The increase in net interest income was he key driver of the y/y growth in net profit PLN m 38 2,936 3,286 +619 +234 +78 -126-108 +29 -94-115 -167 1H 24 Net profit Net interest income Non-interest income 1 Payment moratoria Operating costs Cost of risk Costs of legal risk of foreign currency mortgage loans Provisions related to consumer protection Bank tax, CIT and others BGF charges 1H 25 Net profit 1 Excluding provision related to consumer protection
Page 40
CHF mortgage loans portfolio and CHF portfolio provisions in Pekao compared to the market 39 CHF mortgage loans portfolio and CHF portfolio provisions PLN bn Note: CHF loan portfolio including off-balance sheet transfers. Data for Pekao as at June 30, 2025, for Bank 2 as at December 31, 2023, for Bank 4 as at December 31, 2024, for other banks as at March 31, 2025. Source: financial statements, current reports, own calculations according to a consistent methodology CHF portfolio provisions % CHF portfolio provisions as % of CHF mortgage loans portfolioCHF mortgage loans portfolio 9.0 8.3 6.2 5.6 4.7 3.4 1.8 0.5 0.4 12.9 6.8 8.1 8.9 6.0 5.4 3.1 0.7 0.6 144% 83% 130% 160% 168% 140% 134%129% 161% 201% B a n k 4B a n k 2B a n k 1 B a n k 3 Pekao B a n k 5 B a n k 7B a n k 6 B a n k 8 B a n k 9 1.3 2.7
Page 41
Limited risk of CHF portfolio 40 Structure of CHF mortgage loans pcs – One of the smallest portfolios on the market, one of the highest reserve coverage – ~75% of the portfolio fully repaid or converted to PLN as a result of concluded settlements – Decrease in inflow of lawsuits on active contracts 37.6 ths CHF 2.2 bn 9.1 ths 19.3 ths 1.0 ths 8.2 ths Loans subject to reserve Repaid Final court judgements Settlements Active contracts ~15% in courts ~65% in courts
Page 42
Robust financial and liquidity position 41 LCR and NSFR Loans/Deposits1 Leverage ratio % % % 1 Customer financing (excluding reverse repo transactions) / amounts due to clients, including debt securities (excluding repo transactions) 68 66 66 Jun 24 Mar 25 Jun 25 252 250 239 243 232 171 174 175 174 172 2Q 24 3Q 24 4Q 24 1Q 25 LC R N SFR 7.1 7.1 6.9 Jun 24 Mar 25 Jun 25 Regulatory minimum =3.0% 2Q 25
Page 43
Change in Total Capital Ratio 42 TCR quarterly change % -0.6%0.4% 17. 2%17. 4% Mar 2025 Jun 2025 Change in requirement related to credit risk and counterparty credit risk Tier 2 bond issuance completed in April (net of amortization) – 0.2 p.p. decrease in the ratio, driven primarily by an increase in the capital requirement for credit risk and counterparty credit risk, despite the Tier 2 bond issuance of PLN 750 m completed in April
Page 44
Items affecting MREL 43 MREL quarterly change % 1.3% 0.5% -0.8% 21.5% 22.5% Tier 2 bond issuance completed in April (net of amortization) SNP bond issuance completed in June Change in requirement related to credit risk and counterparty credit risk Jun 2025 Mar 2025 – MREL ratio increased by 1 pp in 2Q’25, mainly due to: • PLN 750 m Tier 2 bond issuance completed in April • EUR 500 m Senior Non-Preferred bond issuance completed in June • increase in capital requirements
Page 45
Debt issuances and capital structure 44 T2, SNP and SP debt issuances Instrument maturity profile1 Strong capital buffers above minimum requirements Nominal amount Series Interest rate Issue date Maturity date Optional redemption date SUBORDINATED DEBT (T2) PLN 1 250m A Floating, WIBOR 6m+1,5% 30.10.2017 29.10.2027 - PLN 550m B Floating, WIBOR 6m+1,5% 15.10.2018 16.10.2028 - PLN 200m C Floating, WIBOR 6m+1,8% 15.10.2018 14.10.2033 15.10.2028 PLN 750m D+D1 Floating, WIBOR 6m+1,7% 04.06.2019 04.06.2031 04.06.2026 PLN 750m E Floating, WIBOR 6m+1,85% 04.04.2025 04.04.2035 04.04.2030 SENIOR NON-PREFERRED (SNP) AND SENIOR PREFERRED (SP) BONDS PLN 350m SN2 7,5% in the first 3 years; floating, WIBOR 6m+2,2% 28.07.2023 28.07.2027 28.07.2026 PLN 500m SN3 Floating, WIBOR 6m+1,60% 26.04.2024 26.04.2029 26.04.2028 EUR 500m ESN1 5,5% in the first 3 years; floating, EURIBOR 3m+2,4% 23.11.2023 23.11.2027 23.11.2026 EUR 500m ESN2 4,0% in the first 5 years; floating, EURIBOR 3m+1,8% 24.09.2024 24.09.2030 24.09.2029 EUR 500m ESN3 3.75% in the first 5 years; floating, EURIBOR 3M+1.65% 04.06.2025 04.06.2031 04.06.2030 PLN 600m SP2 Floating, WIBOR 6m+0,85% 30.07.2024 29.01.2027 30.01.2026 1 Including call option 8.0 17.2 16.03.6 7.3 5.3 8.018.9 22.5 24.0 current minimum requirements capital structure 2Q 25 current target capital structure T C R C B R M R E L +5 .6 pp 1,350 2,471 1,250 500 750 2,121 2,871 2 H 2 5 1 H 2 6 2 H 2 6 1 H 2 7 2 H 2 7 1 H 2 8 2 H 2 8 1 H 2 9 2 H 2 9 1 H 3 0 8.0 17.2 16.03.6 7.3 5.3 8.018.9 22.5 24.0 current minimum requirements capital structure 2Q 25 current target capital structure T C R C B R M R E L +5 .6 pp 1,350 2,471 1,250 500 750 2,121 2,871 2 H 2 5 1 H 2 6 2 H 2 6 1 H 2 7 2 H 2 7 1 H 2 8 2 H 2 8 1 H 2 9 2 H 2 9 1 H 3 0 PLN m %
Page 46
2025 Outlook: Solid and stable growth 45Source: Pekao Research forecasts as of July 2025 1 All non-housing loans; 2 Deposits + retail customers assets in investment funds units Economic outlook Banking sector outlook 2024 2025 2026 GDP, % 2.9 4.0 3.7 Private consumption, % y/y 3.1 3.2 3.6 Investments, % y/y -2.3 8.4 8.2 Unemployment, % eop 5.1 4.9 4.7 CPI, % avg 3.6 3.6 2.7 3M Wibor, % eop 5.84 4.47 3.80 Reference rate, % eop 5.75 4.50 3.75 Exchange rate EUR, eop 4.27 4.21 4.26 Exchange rate USD, eop 4.10 3.51 3.49 Public sector balance,% GDP -6.6 -6.3 -6.8 2024 2025 2026 Loans, % y/y 5.2 6.7 7.2 Retail, % y/y 2.7 5.0 7.2 Mortgage loans PLN 8.4 9.8 9.4 Consumer loans1 5.5 7.0 8.1 Corporate, % y/y 5.4 8.4 9.3 Savings2, % y/y 10.5 8.8 8.2 Deposits, % y/y 10.4 7.7 7.8 Retail, % y/y 9.6 8.9 8.2 Corporate, % y/y 3.9 3.0 5.0 – We maintain our view that economic growth will accelerate to 4% in 2025. The main drivers will be investments (especially public) and private consumption. Inflation is falling faster than wage growth, which increases the purchasing power of households. – 1H’25 marks a continued acceleration in the credit market. Falling interest rates, increased propensity to consume, and an investment rebound are the main drivers of credit growth this year. A risk factor remains the elevated level of loan amortization, which offsets the effects of record new loan sales (particularly in the housing segment). Nevertheless, we believe that this year’s credit volume growth will exceed 6%.
Page 47
Consolidated balance sheet 46 PLN M JUN 24 MAR 25 JUN 25 q/q% y/y% Cash and cash equivalents 15,523 17,230 17,932 4.1% 15.5% Loans and advances to banks 325 475 609 28.2% 87.4% Loans and advances to customers1 176,764 181,961 188,434 3.6% 6.6% Investment securities2 104,065 116,215 114,564 (1.4%) 10.1% Intangible assets 2,416 2,504 2,498 (0.2%) 3.4% Tangible fixed assets 1,985 2,066 2,053 (0.6%) 3.4% TOTAL ASSETS 316,046 333,313 339,634 1.9% 7.5% Amounts due to other banks 6,572 6,972 7,562 8.5% 15.1% Financial liabilities held for trading 920 750 1,050 40.0% 14.1% Amounts due to customers 247,344 260,958 266,056 2.0% 7.6% Debt securities issued 13,298 14,575 16,100 10.5% 21.1% Subordinated liabilities 2,782 2,832 3,543 25.1% 27.4% Other 16,907 13,236 14,163 7.0% (16.2%) Total liabilities 287,823 299,323 308,474 3.1% 7.2% Total equity 28,223 33,990 31,160 -8.3% 10.4% 1 Including loans and advances from customers, receivables from finance leases and non-treasury debt securities; 2 Excluding non-treasury debt securities
Page 48
Consolidated income statement 47 PLN M 2Q 24 1Q 25 2Q 25 q/q% y/y% 1H 24 1H 25 y/y% Net interest income1 2,922 3,414 3,446 0.9% 17.9% 6,007 6,860 14.2% Net fee and commission 697 732 765 4.5% 9.8% 1,365 1,497 9.7% Operating income 3,802 4,249 4,252 0.1% 11.8% 7,678 8,501 10.7% Operating costs2 (1,341) (1,329) (1,376) 3.5% 2.6% (2,579) (2,705) 4.9% Personnel cost (883) (792) (840) 6.1% (4.9%) (1,616) (1,632) 1.0% Non-personnel cost & depreciation (458) (537) (536) (0.2%) 17.0% (963) (1,073) 11.4% OPERATING PROFIT 2,461 2,920 2,876 (1.5%) 16.9% 5,099 5,796 13.7% Provisions (232) (153) (231) 51.0% (0.4%) (413) (384) (7.0%) Costs of legal risk of foreign currency mortgage loans (206) (49) (309) 530.6% 50.0% (243) (358) 47.3% Guarantee funds charges 0 (307) (26) (91.5%) - (239) (333) 39.3% Banking tax (225) (216) (215) (0.5%) (4.4%) (448) (431) (3.8%) PROFIT BEFORE INCOME TAX 1,800 2,193 2,093 (4.6%) 16.3% 3,760 4,286 14.0% Income tax (380) (507) (491) (3.2%) 29.2% (822) (998) 21.4% GROUP NET INCOME3 1,419 1,685 1,601 (5.0%) 12.8% 2,936 3,286 11.9% 1 NII excl. dividends and other income from equity investments, 2 Costs excl. guarantee funds charges and regulator and inl. FSA; 3 Net profit attributable to equity holders of the Bank Note: Data as reported
Page 49
Key performance indicators 48 2Q 24 1Q 25 2Q 25 q/q NET y/y NET 1H 24 1H 25 y/y NET ROE (%) 19.8% 20.5% 20.3% -0.20 0.45 19.9% 20.6% 0.73 ROA (%) 1.8% 2.0% 1.9% -0.11 0.12 1.9% 2.0% 0.09 NIM (%) 3.91% 4.29% 4.26% -0.03 0.35 4.03% 4.27% 0.24 L/D (%) 67.6% 65.7% 66.3% 0.64 -1.27 67.6% 66.3% -1.27 Cost/Income Ratio (%) 35.3% 31.3% 32.4% 1.08 -2.91 33.6% 31.8% -1.77 Cost/Income Ratio inc. BGF (%) 35.3% 38.5% 33.0% -5.53 -2.30 36.7% 35.7% -0.97 Cost of Risk (%) 0.51% 0.33% 0.48% 0.15 -0.03 0.46% 0.40% -0.05 TCR 17.1% 17.4% 17.2% -0.20 0.10 17.1% 17.2% 0.10 Tier 1 15.1% 16.2% 15.6% -0.60 0.50 15.1% 15.6% 0.50
Page 50
Selected data 49 BANK JUN 24 MAR 25 JUN 25 q/q% y/y% Outlets 572 568 566 (0.4%) (1.0%) ATM’s 1,297 1,316 1,323 0.5% 2.0% Employees1 12,534 12,372 13,778 11.4% 9.9% No of PLN current accounts (ths)2 8,377 8,833 8,835 0.0% 5.5% No of mortgage loan accounts (ths)3 362 344 340 (1.2%) (6.0%) No of clients holding a consumer loan accounts (ths)4 578 573 576 0.5% (0.3%) Number of individuals acitive users electronic banking Pekao24 (ths)4 3,757 3,959 4,003 1.1% 6.5% Number of individuals with an access to mobile banking (ths)5 5,279 5,572 5,678 1.9% 7.6% GROUP JUN 24 MAR 25 JUN 25 q/q% y/y% Employees 15,064 15,042 15,027 (0.1%) (0.2%) Number of MF accounts (ths) 787 841 850 1.0% 8.0% Number of Brokerage accounts (ths) 203 204 206 0.7% 1.1% 1 In 2Q’25, the Bank acquired an organized part of the enterprise from Pekao Direct, resulting in the transfer of 1,420 employees to the Bank 2 Number of accounts including pre-paid card accounts 3 Retail clients’ accounts 4 Pożyczka Ekspresowa (Express Loan) 5Including individuals and micro companies
Page 51
Mutual Funds distributed by the Group 50 Mutual funds - volumes Pekao Investment Management S.A. PLN m % Third party funds distributed by the Group Pekao Investment Management S.A. (PPIM before) Equity funds Balance funds Money and bonds funds Employee Capital Programs 24 ,564 30 ,311 31 ,803 3,347 3 ,557 3 ,748 27,910 33, 867 35 ,551 Jun 2 4 Mar 2 5 Jun2 5 +27.4% +5.0% 6% 16% 72% 6% Third party funds distributed by the Group Pekao Investment Management S.A. (PPIM before) Equity funds Balance funds Money and bonds funds Employee Capital Programs 24 ,564 30 ,311 31 ,803 3,347 3 ,557 3 ,748 27,910 33, 867 35 ,551 Jun 2 4 Mar 2 5 Jun2 5 +27.4% +5.0% 6% 16% 72% 6%
Page 52
Oceny ratingowe Banku Pekao S.A. 51 30.06.2025 PEKAO POLAND FITCH RATINGS Long-term rating (IDR) BBB+ A- Short-term rating F2 F1 Viability rating bbb+ _ Outlook Stable Stable PEKAO POLAND S&P GLOBAL RATINGS Long-term rating A- A- Short-term rating A-2 A-2 Stand-alone bbb+ Outlook Stable Stable PEKAO POLAND MOODY’S INVESTORS SERVICE LTD unsolicited rating Long-term foreign-currency deposit rating A2 A2 Short-term deposit rating Prime-1 Prime-1 BCA baa2 – Outlook Stable Stable ESG RATINGS Institution ESG Rating MSCI BBB FTSE Russell 3,6 Morningstar Sustainalytics 22,5 Medium risk Moody’s Analytics 49/100 S&P CSA 39/100 CDP D
Page 53
IS IN : P L P E K A O 00016 B l o o m b er g : P E O P W R eu ter s : P E O . W A 0 50 100 150 200 250 Jan- 20 Apr- 20 Jul- 20 paź 20 Jan- 21 Apr- 21 Jul- 21 Oct- 21 Jan- 22 Apr- 22 Jul- 22 Oct- 22 Jan- 23 Apr- 23 Jul- 23 Oct- 23 Jan- 24 Apr- 24 Jul- 24 Oct- 24 Jan- 25 Apr- 25 Jul- 25 Pekao Euro Stoxx 600 Banks +216 % +253 % PZU Group is the largest insurance and banking group in CEE ~480 bn PLN of assets. More than 22 million clients in 5 countries Polish Development Fund (PFR) is a group of financial and advisory institutions supporting companies, local governments and individuals 20% 13% 6 % 5 %7 %6 % 42% P Z U S .A. P F R S .A. N N O F E A l l i a n z O F E Other O F E T F I Other 1 2 64% 16% 12% 8 % Poland E u r o p e U S A Other SHAREHOLDERS: Diversified shareholder base 52 Shareholding structure Listing and valuation TSR Performance vs. sector (%)3 – The second largest bank in terms of assets (PLN 340 bn) and third largest bank in Poland in terms of market capitalization (PLN 53 bn) – Member of several local and global indices: WIG Banki, WIG 20, WIG 30, MSCI Emerging Markets, STOXX Europe 600 Index, FTSE Developed Equity Index, FTSE4Good – Reliable dividend payer: ~PLN 22 bn dividend paid out over last decade – P/BV’25: 1.5x, P/E’25: 8.0x3 Source: 1 Polish Pension Funds semi-annual reports dated 30th of June 2025; 2 Source: Analizy online, as of 31st of December 2024; 3 Bloomberg as of 30th of July 2025
Page 54
Investor Relations Team: Contact and calendar 53 CONTACT DETAILS Q&A RELATED TO THE PRESENTATION: Marcin Jabłczyński Head of Investor Relations ph.: +48 722 034 633 e-mail: marcin.jablczynski@pekao.com.pl Michał Handzlik ph.: +48 697 970 386 e-mail: michal.handzlik@pekao.com.pl Iwona Milewska ph.: +48 691 202 645 e-mail: iwona.milewska@pekao.com.pl FINANCIAL CALENDAR 27 February 2025 Annual Report 2024 and Webcasting 30 April 2025 First Quarter Report and Webcasting 7 August 2025 Semi-annual Report and Webcasting 30 October 2025 Third Quarter Report and Webcasting
Page 55
Disclaimer 54 This presentation (the ”Presentation”) has been prepared by Bank Polska Kasa Opieki Spółka Akcyjna (“Bank”) for the clients, shareholders and financial analysts. The Presentation should not be treated as an offer or invitation to purchase any securities or financial instruments or as advice or recommendation in respect to such securities or financial instruments. The presented data are only general information and does not refer to an offer by the Bank for products or services. In order to take advantage of the services and products of the Bank, one should be thoroughly familiar with the characteristics of the particular service or product, its rules, risks and legal and tax consequences of the use of particular services or products. The strategy presented in the Presentation contains goals which are the ambition of the Management Board and do not constitute any financial results forecast. Rights for the Presentation as a whole are reserved to the Bank. The Presentation is subject to the protection provided by law, in particular: the Act dated 4 February 1994 on Copyright and Related Rights (consolidated text in Journal. Laws of 2006, No. 90, item. 631, as amended); the Act dated 27 July 2001 on the protection of Databases (Journal of Laws No. 128, item. 1402, as amended); the Act dated 16 April 1993 on Combating Unfair Competition (consolidated text in Journal of Laws of 2003 , No. 153, item 1503, as amended) and the Act dated 30 June 2000 on Industrial Property Law (consolidated text in Journal. Laws of 2003, No. 119, item. 1117, as amended). The Presentation may include forward looking statements, the Bank’s outlook for the future, future plans and strategies or anticipated events that are not historical facts. Since these statements are based on assumptions, expectations, projections and provisional data about future events, the content is inherently uncertain. Factors that could cause or contribute to differences in current expectations include, but are not limited to: (i) general economic conditions, among which the economic conditions of the business areas and the markets in which the Bank and its subsidiaries operate, (ii) the performance of financial markets (iii) changes in laws or regulations and (iv) general competitive conditions locally, regionally, nationally and/or internationally. The Bank does not undertake to publish any updates, modifications or revisions of the information, data or statements contained herein should there be any change in the strategy or intentions of the Bank, or should facts or events occur that affect the Bank’s strategy or intentions, unless such reporting obligations arise under applicable laws and regulations. Neither the Bank, nor any of its representatives shall be responsible for any loss or damage that may arise from the use of the Presentation or of any information contained herein or otherwise arising in connection to this Presentation. This presentation is not for distribution in or into countries where the public dissemination of the information contained herein may be restricted or prohibited by law.