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.
Statement of Financial Position and Financial Results
Consolidated income statement containing cumulated items for the period from 1 January to 31 December, 2024 and 2023 respectively is presented in the Consolidated Financial Statements of Bank Pekao S.A. Group for the year ended on 31 December 2024.
The Report on activities of Bank Pekao S.A. Group for the year 2024, includes statement of financial position in a short form and income statement in a presentation form as well as the key, selected items from these statements are discussed.
The consolidated income statement – presentation form
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.
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.
Interest income and similar to interest in 2024 amounted to PLN 18,810 million and was higher by PLN 755 million y/y, thanks to higher volumes, despite lower interest rates and the recognition of credit holiday costs in the amount of PLN 153 million.
Interest expenses in 2024 amounted to PLN 6,081 million and were lower by PLN 81 million y/y, despite higher volumes of liabilities to customers and from the issue of debt securities.
Interest margin
The interest margin excluding the costs of recognizing credit holidays achieved in 2024 amounted to 4.21% and was 0.06 p.p. higher than the margin achieved in 2023.
Net non-interest income
The non-interest income achieved in 2024 amounted to PLN 3,320 million and was highrt by PLN 13 million, i.e. 0.4% compared to the result achieved in the previous year, thanks to higher fee and commission income.
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 table below presents the Group’s net fee and commission income divided according to the main areas of the activity.
Operating costs
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 cost/income ratio in 2024 was 32.7% compared to 30.5% in the same period of 2023.
5,244
mln PLN
Operating costs in the 2024
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.
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.