Half Year 2026 Bank Handlowy w Warszawie SA Earnings Call Transcript
Key Points
- Bank Handlowy w Warszawie SA (FRA:6HW) reported a strong net profit of PLN 321 million with a healthy ROE of 21% and ROA of 2.3% in Q2 2026.
- The bank achieved its sixth consecutive quarter of lending growth, with loans up 16% year-over-year and deposits up 12% year-over-year.
- Net fees and commission income reached PLN 119 million, up 10% quarter-over-quarter and 11% year-over-year, driven by strong capital markets activity and trade finance growth.
- The bank's capital position remains robust, with a capital ratio of 25.8%, benefiting from lower credit risk requirements post-consumer bank exit.
- The first half of 2026 saw a 20% year-over-year growth in Treasury results, reaching PLN 850 million, despite a softer Q2 due to calendar effects.
- The bank successfully completed the sale of its consumer business, marking a strategic shift to a 'Bank for Global Business' model with a focus on institutional banking.
- Global clients remain a key pillar, contributing 41% of revenues and holding a 38% share in the lending portfolio, with long-standing relationships averaging 3.8 products per client.
- Total revenue in corporate banking declined 28% quarter-over-quarter, though the segment itself grew 7%, reflecting the impact of the consumer bank exit.
- Financial markets revenue dropped 53% quarter-over-quarter, attributed to calendarization effects, though the first half showed strong growth.
- Net interest income in the financial markets segment fell 9% due to higher interest expenses linked to liquidity needs for the consumer bank exit transaction.
- Cost of risk increased to 47 basis points in Q2, driven by two client relationships classified as Stage 3, though excluding one-offs it remains at a healthy 19 basis points.
- Staff expenses rose by PLN 28 million and IT expenses increased by PLN 40 million in the first half, reflecting strategic investments but adding to cost pressures.
- Regulatory expenses increased by 29% in the first half, primarily due to contributions to the banking restructuring fund.
- Income from FX client activities saw a slight 3% drop despite growing volumes, due to higher-ticket transactions with lower spreads.
Good afternoon, everyone. Welcome to Citi Handlowy earnings results for the second quarter of 2026. My name is Adam Piotrac. I am the Head of Investor Relations. I am with Maciej Krevoniuk, Head of Strategy and Investor Relations Department. We will go through the key highlights of Citi Handlowy in the second quarter and the financial results. The presentation is on your screen, and you can also find it on our Investor Relations website for Citi Handlowy. So, Maciej, over to you.
Thank you very much, Adam. Hello, everyone. Thank you for joining the Q2 earnings call for Citi Handlowy. We will start with the presentation, and I invite you to the Q&A session at the end of the meeting.
So, Q2 was quite an intense quarter for us. We completed the sale of our consumer business, as we have informed all of the stakeholders. We embarked on a new chapter for the bank, which is the Bank for Global
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