Summary of Performance

Main P&L items

In 2024, we generated net profit of Bank Pekao S.A. Group attributable to the Bank's shareholders in the amount of PLN 6.376 million. This result was nominally lower by PLN 283 million than the result achieved in 2023, mainly due to higher costs of legal risk of foreign currency mortgage loans, higher operating costs and the recognition of costs related to the modification of PLN mortgage loan agreements granted to consumers due to their suspension of loan repayments (credit holidays).

Net profit excluding the cost of credit holidays and the costs of legal risk of foreign currency mortgage loans amounted to PLN 7,169 million and was 4.0% higher y/y.

The ROE ratio was at the level of 21.2%.

The Group’s operating income in 2024 amounted to PLN 16,049 million and was 5.6% higher than the income achieved in the 2023, mainly due to net interest income, despite the recognition of credit holiday costs.

Net interest income achieved in 2024 amounted to PLN 12,729 million and was higher by PLN 836 million, i.e. 7.0% compared to the result achieved in 2023, mainly due to higher volumes and a stable interest margin, despite the recognition of credit holiday costs in the amount of PLN 153 million.

The net fee and commission income achieved in 2024 amounted to PLN 2,854 million and was higher by PLN 68 million, i.e. 2.4% compared to the result achieved in 2023, mainly due to higher commissions from investment funds (the effect of better gross sales and assets under management increased by 32.9% y/y).

The trading result achieved in the 2024, amounted to PLN 444 million and was lower by PLN 63 million compared to the result achieved in the 2023 due to the lower valuation of derivative instruments.

Operating costs in the 2024 amounted to PLN 5,244 million and were higher by PLN 613 million, i.e. 13.2% compared to the 2023, mainly due to inflation indexation of salaries, the variable part of personnel costs related to the result and costs related to the voluntary redundancy program.

The Net allowances for expected credit losses in the amounted to PLN 883 million and was higher by PLN 257 million, i.e. 41.1% than in 2023. The Group’s cost of risk in 2024 amounted to 0.48%, up 0.12 p.p. from the previous year, and are in line with the strategic assumptions and the adopted risk appetite.

Contributions to the Bank Guarantee Fund in 2024 amounted to PLN 239 million and were higher by PLN 49 million i.e. 25.8% than in 2023, due to the increase in the volume of guaranteed funds.

The tax on certain financial institutions in 2024 amounted to PLN 898 million and was higher by PLN 19 million, i.e. 2.2% than in 2023 due to the increase in the Bank’s assets.

21.2

The ROE ratio

16,049

mln PLN

The Group's operating income

Volumes

As at the end of December 2024, loans and advances at nominal value amounted to PLN 186,507 million and were higher by PLN 10,157 million, i.e. 5.8% than at the end of December 2023. As at the end of December 2024 the volume of retail loans amounted to PLN 83,768 million and were higher by PLN 5,393 million, i.e. 6.9% than at the end of December 2023. Corporate loans including non-treasury debt securities at the end of December 2024 amounted to PLN 102,739 million and were higher by PLN 4.764 million, i.e. 4.9% compared to the end of December 2023.

As at the end of December 2024 amounts due to the Group’s Customers and Debt securities issued amounted to PLN 277,983 million and were higher by PLN 33,166 million, i.e. 13.5% than at the end of December 2023.

The value of net assets of investment funds managed by Pekao TFI S.A. amounted to PLN 32,189 million and was higher by PLN 7,961 million, i.e. 32.9% compared to the end of December 2023.

In 2024, we increased commercial activity, actively supported clients in maintaining financial liquidity, continued to digitize and automate processes, and implemented advanced digital solutions.

In 2024, we opened 572 thousand accounts for individual clients, maintaining high sales results compared to 2023. We also achieved good acquisition results among young clients up to 26 years of age, opening 190 thousand accounts for young people, which constitutes 33% of total accounts.

In 2024, the number of active mobile banking clients increased by 295 thousand to 3.4 million, exceeding the target assumed in the strategy at the end of 2024 (3.2 million). It was +9% higher than a year ago and +24% higher than two years ago.

We offered a rich deposit offer to individual clients, including: interest rate of 7.0% per annum on savings accounts, deposit with a fund of 6.5% per annum for a period of 6 months.

In 2024, we offered individual, business and SME customers who were affected by the flood or its direct consequences the “SOS Pakiet Pomocowy”, which allowed for the suspension of installment repayments for up to 3 months or the extension of the extension date.

Individual customers who have a housing loan and were affected by the flood or its direct consequences could take advantage of the statutory non-refundable financial support paid in installments under the Borrower Support Fund.

The Bank transferred PLN 1 million to the Great Orchestra of Christmas Charity Foundation, which acted as the national coordinator of aid activities for flood victims.

The Bank also supported employees who live or work in areas affected by the flood. We offered them assistance adequate to their needs, including psychological, financial and logistical support.

The Bank’s employees also got involved in helping communities affected by the effects of the natural disaster in southern Poland by organizing many volunteering events.

We have extended a special offer for individual and corporate customers from Ukraine.

We focused our activities in the following key strategic areas (in accordance with the adopted Strategy for 2021-2024):

Strategy and key financial indicators

„Responsible Bank. Modern banking” is th strategy for the years 2021-2024, announced in March 2021. According to the strategic plan:

we are a universal bank, we want to be the bank of first choice for our clients,

we develop a remote distribution and customer service model,

we focus on cost and process efficiency,

we are growing in the most profitable market segments.

Our ambition is a strong position among the most profitable and effective banks in Poland, including increasing the return on equity (ROE), reducing the cost-to-income ratio and increasing the number of active mobile banking customers.

Summary of Performance

Main P&L items

Volumes

Strategy and key financial indicators

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