Citi Handlowy (Bank Handlowy w Warszawie SA) reported a net profit of PLN 321 million for the second quarter of 2026, driven by strong performance in institutional banking and treasury operations following the completion of its consumer banking exit.
The bank’s return on equity reached 21%, while return on assets stood at 2.3% for the quarter. Total revenue, including consumer operations up to the exit date, totaled PLN 878 million, with core business revenue at PLN 578 million. Net interest income came in at PLN 460 million, while net fees and commissions rose 10% quarter-over-quarter to PLN 119 million.
Lending volumes expanded 16% year-over-year and 2% quarter-over-quarter, marking the sixth consecutive quarter of growth. Corporate banking lending grew 16% YoY, with the corporate client segment up 17% quarter-over-quarter and 22% year-over-year. Deposit volumes surpassed PLN 47 billion, an increase of 12% YoY and 3% QoQ.
Global clients accounted for 38% of the lending portfolio and 41% of total revenue. Institutional clients averaged 3.8 products each, with roughly 60% maintaining relationships of at least 10 years. Foreign exchange volumes rose 14% QoQ to record highs, though income from client FX activity declined 3% due to compressed spreads on larger transactions.
Treasury results reached PLN 273 million in Q2, bringing the first-half total to PLN 850 million, a 20% increase over the same period in 2025. Capital markets activity generated PLN 7.4 billion in equity and debt transaction volumes, while trade finance assets grew 34% YoY and assets under custody rose 22% YoY. New financing granted totaled PLN 1.4 billion.
The cost of risk stood at 47 basis points for the quarter, elevated by two client relationships reclassified to Stage 3. Excluding these one-offs, the core cost of risk remained at 19 basis points. Total expenses fell 37% QoQ, primarily due to calendar effects after Q1 regulatory costs. Staff expenses declined 4% QoQ, while administrative expenses decreased 3% QoQ. Year-to-date, staff expenses rose by PLN 28 million, IT investments increased by PLN 40 million, and regulatory expenses grew 29%.
The bank’s capital ratio remained robust at 25.8%. Management reiterated expectations for interest rates to hold at 3.75% and projected the cost of risk to normalize toward the core level of 19 basis points.
Citi Handlowy’s share price fell 3.54% to PLN 119.80 following the results, placing it 9.2% below its 52-week high and 20.9% above its low. The stock has delivered a 30% total return over the past year and is up 27% year-to-date, with a P/E ratio of 8.7 and a dividend yield of 7.89%.
