BNP Paribas Bank Polska SA (FRA:82MA) (Q3 2026) Earnings Call Highlights: Net Profit Climbs 15% …

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• Net Profit: PLN689 million in Q3 2026, up 15% quarter-on-quarter and roughly flat year-on-year.

• Revenue: Up 3% quarter-on-quarter and nearly 7% year-on-year, driven mainly by interest income.

• Net Interest Margin: Improved by 12 basis points; net interest income represents 75% of revenue.

• Cost-to-Income Ratio: Below 41% after the first nine months, better than after the first two quarters.

• ROTE: Improved by 2 percentage points to 15%.

• Operating Costs: Under control; Q3 vs. Q2 nearly flat, year-on-year dynamics (excluding regulatory costs) close to declared CAGRs.

• Cost of Risk: 22 basis points for the quarter, 27 basis points cumulatively; stabilizing around 30 basis points.

• Gross Loans: Up 3% quarter-on-quarter and 9% year-on-year; corporate/institutional loans grew strongest, SME loans up over 5% quarter-on-quarter.

• Deposits: Net growth in Q3 with disciplined pricing; growth driven mainly by retail, with rising share of non-interest-bearing current account balances.

• Current Accounts: 14% growth in Retail and Business Banking.

• Retail Customer Acquisition: 204,000 net new retail customers after three quarters (against a strategic goal of 1 million by 2030).

• Impaired Loans: Stable at 2.6% of the portfolio.

• Swiss Franc Mortgage Litigation: Number of CHF lawsuits declining; legal risk costs relatively low.

• Sustainable Funding: PLN6 billion of new sustainable production added after three quarters (against a PLN25 billion pledge).

• Capital Sensitivity: 100 basis points interest rate sensitivity of PLN6 million to PLN106 million, affecting capital value in Q3.

Release Date: November 05, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Net profit increased 15% quarter-over-quarter to PLN689 million, with revenue up 3% QoQ and nearly 7% YoY.

• Return on tangible equity (ROTE) improved by 2 percentage points to 15%, and cost-to-income ratio remained below 41%.

• Gross loans grew 3% QoQ and 9% YoY, driven by corporate and SME lending, with market share gains in institutional banking.

• Retail customer acquisition accelerated, adding 204,000 net new customers in the first three quarters, supported by improved mobile onboarding and mObywatel integration.

• Cost of risk stabilized at around 30 basis points, reflecting strong portfolio quality, and legal costs related to CHF mortgages continued to decline.

Negative Points

• Mortgage market remains challenging due to a price war, with prices at breakeven levels and low profitability; BNP Paribas Bank Polska SA (FRA:82MA) is selective and not aiming for market leadership.

• Net interest margin faces pressure from intense competition on loan pricing, particularly in corporate lending, where margins are lower than initially assumed.

• Investment product balances were under pressure amid a difficult market environment, and sales volumes were not a primary focus.

• Political and regulatory risks remain elevated, with potential for further sector burdens despite already high effective tax rates.

• Cost growth is expected to be single-digit, but revenue growth may be challenged by margin pressure and the introduction of the POLSTR benchmark, which creates uncertainty for loan margins.

Q & A Highlights

Q: What is the outlook for net interest income and margin given competitive pressure and the upcoming POLSTR benchmark? A: Piotr Konieczny, Vice President of the Management Board – Finance Area, said the bank is “moderately positive” on NIM. Margin pressure is expected to persist in coming quarters, and the new POLSTR rate introduces uncertainty for loan margins next year. However, high sector liquidity should help stabilize funding costs, and business growth should support the NII outlook.

Q: What are the plans for the new OKI program launching next year? A: A company representative said OKI will launch in January as soon as possible. Management is not overly euphoric about it, viewing OKI more as an addition to the customer offering rather than a major customer acquisition tool.

Q: What is the dividend outlook for next year given the improving capital position? A: Management said it will follow the Accelerate 2030 strategy, which assumes a 50-50 profit split with shareholders. If conditions are favorable, the Board may recommend an increased payout, but this should be seen as an outlook for the second part of the strategic period rather than an imminent change to dividend policy.

Q: What is happening in the mortgage market, and is refinancing easing? A: A company representative said refinancing activity is declining, but price competition remains intense. Mortgages are a product the bank must offer, but standalone ROI is difficult to prove. BNP Paribas will stay in the market without competing aggressively on price or chasing volume at any cost.

Q: What is the outlook for corporate loan demand and investment growth next year? A: Przemyslaw Gdanski, Chairman of the Management Board, said client demand and investment readiness are strong, but competition is fierce, with banks accepting lower margins and looser structures. Corporate credit growth has exceeded initial assumptions, though margins are lower. Michal Dybula, Chief Economist for Central and Eastern Europe, added that investment growth may be slightly weaker next year as EU funding peaks, but corporate investment cycles should continue, driven by energy, construction, and industrial sectors.

Q: Where do new retail customers come from if all banks are acquiring customers? A: A company representative identified three sources: customers switching banks, customers becoming multi-bank users (a clear trend in Poland), and young people opening their first account. The bank is very satisfied with its acquisition pace relative to peers.

Q: Is there a risk of further regulatory burden on banks given the upcoming election year? A: Gdanski said political and regulatory risk is high on the radar. He hopes that after the corporate income tax increase, which pushed the effective tax rate well above the nominal 30%, the government will not further burden the sector, especially as banks are practically the only source of financing for the economy.

Q: What is the desired cost growth dynamic in coming quarters? A: Konieczny said the goal is for costs to rise slower than revenues. Next year, the bank assumes single-digit cost growth, with personnel costs rising in line with inflation.

Q: What functionalities can be expected from the mobile app and AI assistant? A: A company representative said the app is being developed continuously, with recent improvements including mObywatel-based onboarding and a dedicated Gen Z offering launching in November. The AI assistant remains a strategic vision, and it is too early to say when it will be embedded or what roles it will have.

Q: Will the bank introduce a model template for mortgage contracts? A: A company representative confirmed yes. Key elements of the model contract will be incorporated with adjustments for the bank’s systems, launching in November alongside the new mortgage offering based on the POLSTR benchmark.

Q: How is the bank approaching consumer loans and consolidation loans? A: A company representative said the bank’s strength is in installment loans through retail partnerships, such as home appliances and vehicle financing, which build customer loyalty. Consolidation loans are offered when needed but are not the main acquisition engine.

Q: What is the outlook for investment products and the Gen Z offering? A: A company representative said liability management is key, and the bank is expanding its investment and deposit offering. In November, it will launch a Gen Z offering with new investment products tailored to that segment’s needs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.