Poland's PKO BP tops profit expectations on higher fees, lower provisions (updated)

Powszechna Kasa Oszczednosci Bank Polski SA

14/05/2026 06:42

Recasts, adds management comments on net interest income outlook, Swiss franc mortgages and asset quality in paragraphs 1, 4 and 8.

By Anna Koper

WARSAW, May 14 (Reuters) - PKO Bank Polski PKO.WA aims to keep its 2026 net interest income close to last year's levels despite lower interest rates, finance chief Krzysztof Dresler said on Thursday.

Polish banks are seeking to bolster lending and fee income as lower interest rates and a raised corporate tax for lenders weigh on profits, ending an earnings boom that had made the sector one of Europe’s stronger stock market performers.

Poland's biggest bank increased its net profit by 2% to 2.52 billion zlotys ($695 million) in the first quarter, as a drop in legal provisions related to Swiss franc mortgages and higher fee income countered interest rate cuts and the tax hike.

"This year should be the last year when it comes to the risk related to Swiss franc mortgages," said Piotr Mazur, vice president in charge of risk management, as the drag from costly lawsuits tied to the once-popular loans fades.

Net fee income jumped 10% to 1.38 billion zlotys, supported by higher fees on investment funds and brokerage activities, along with higher margins on foreign exchange transactions.

Net interest income fell less than 1% from last year to 5.95 billion zlotys despite lower interest rates, helped by growth in loan volumes. Both net fee and interest incomes were slightly above market expectations.

New sales of mortgage loans grew 83% to 10.6 billion zlotys, while new consumer loans increased by 5.8% to 8.3 billion zlotys, PKO BP said.

"Despite the geopolitical turmoil, we do not see any pressure on asset quality yet," CEO Szymon Midera told reporters.

While lower rates may boost mortgage demand, Polish central bank Governor Adam Glapinski said last week that the Monetary Policy Council would not hesitate to act on rates if inflation took a negative turn.

($1 = 3.6246 zlotys)

(Reporting by Anna Koper in Warsaw;
Additional reporting by Anna Jaworska-Guidotti and Rafal Nowak in Gdansk;
Editing by Milla Nissi-Prussak)

((anna.jaworska-guidotti@tr.com ; +48 58 769 65 56))