Erste Bank Polska S.A.

The bank reported first-half 2026 net profit of PLN 2.2 billion, with Q2 net profit of PLN 1.173 billion, up 14% year on year. Net interest income was PLN 6.164 billion in H1, net fee income PLN 1.539 billion, up 5% YoY, and total income PLN 8.052 billion, up 1% YoY. Gross loans were PLN 177 billion, up 8% YoY; customer deposits were PLN 246 billion, up 11% YoY; total customer funds were PLN 279 billion, up 13%; total assets were PLN 323 billion, up 3%; and ROE was 19%. Q2 net interest margin was 4.39%, LCR was 195.5%, cost of risk was around 35 bps, and NPLs were 3.6% versus 3.9% a year ago. For full-year costs, management reaffirmed PLN 250 million of rebranding spend in 2026 and a PLN 500 million cap for total integration and rebranding costs; it also reiterated a 4% to 5% organic cost growth outlook and said loan growth is expected at about 7% to 8% this year and next, then slightly lower in 2027.

Michal Gajewski said the first full quarter as Erste Bank Polska showed the brand launch is gaining traction, pointing to fast-rising awareness and better acquisition momentum. He emphasized that the group is supporting growth, the bank is still investing in products and customer acquisition, and the goal is profitable growth rather than share gains alone. His tone was confident and upbeat, repeatedly framing the rebranding and product changes as investments that are already producing tangible results.

Bernhard Leder said underlying NII and NIM trends improved in Q2 despite a roughly PLN 71 million hit from the European Court of Justice ruling, which he said reduced NIM by about 10 bps. He highlighted that like-for-like NIM was flattish quarter on quarter, supported by strong balance-sheet volume growth and a larger investment book funded by deposit growth. On costs, he reiterated the PLN 500 million cap for integration and rebranding this year, said business-as-usual costs are under control, and noted the bank expects to remain efficient while managing group cost allocations, IT, branding, and staff spend.

Analysts pressed management on whether NIM pressure was easing, fee income softness in Q2, cost guidance, risk costs, and legal/regulatory exposures. Management said NIM has started to reverse, helped by volume growth and deposits, while the Q2 fee dip was attributed mainly to SME promotions and would have been a record quarter without that investment. On risk and litigation, management said provisions were not raised for UOKiK-related matters or other legal issues, argued existing provisions are adequate, and said they have not seen a dramatic increase in claims despite activity from claim-buying firms. They also said they are pursuing a new investment-fund distribution model and support individual investment accounts.