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Citi Handlowy's Second Quarter 2025 Earnings
The second quarter of 2025 was a period of strategic changes for Citi Handlowy. In May, the bank announced the sale of the consumer banking business to VeloBank, and its commitment to become a leading Global Business Bank. As part of this strategy, Citi Handlowy has been focused on supporting key projects for the country, such as defense and energy transition. The bank plays a key role in supporting companies with international needs, global corporations that do business in Poland, and public sector institutions.
In the second quarter of 2025, Citi Handlowy's net income amounted to PLN 166 million and it was impacted by the loss on sale of the consumer bank announced in May, in the amount of PLN 381 million. Excluding the impact of this transaction, the bank's net income was PLN 546 million. This result is higher by 26% versus the prior quarter. ROE stood at almost 18%, and the TLAC TREA capital ratio at 27,1%.

„This was a unique quarter. With the announcement of the sale of our consumer banking business to VeloBank, we are building a "new" bank and repositioning Citi Handlowy. I am very pleased that the impact of the new strategy is already visible in our earnings. Revenues and assets in institutional banking are growing faster than the market. In the second quarter, we recorded a 19% year-on-year increase in loans in this business. We are present in the most important and largest corporate transactions, and work on key projects in the area of defense and energy transformation. Last but not least, we are committed to sharing profits with our shareholders. This year, we paid out the second-highest dividend in history, amounting to 1.3 billion zloty. Moreover, the regulator approved the payout of the 2019 profit, which we said was our plan in May,” said Chief Executive Officer Elżbieta Czetwertyńska. „Preparations for the migration of the consumer banking are proceeding as planned, and we expect that this process will be finalized by mid-2026. This is subject, of course, to obtaining the relevant regulatory approvals," the CEO adds.
Citi Handlowy's total revenues reached PLN 1.1 billion (+1% y/y), driven by very good results from markets treasury. Net interest income decreased by 5% y/y to PLN 762 million, and net fee and commission income dropped by 1% y/y and was at PLN 147 million. The bank's operating expenses including depreciation amounted to PLN 393 million, which was an increase by 11% from the same period in 2024. Loans increased by 17% year-on-year, and deposits by 19%. The cost-to-income ratio was 35%.
In Institutional Banking, loans increased at a pace faster than the GDP (7% q/q) and by as much as 19% year-on-year, compared to the 6% average growth in the sector. The bank granted 36% more, new and increased financing to its institutional clients. The most dynamic growth was recorded among the largest corporate clients (43% y/y) and in the Commercial Bank segment (20% y/y).
Citi Handlowy entered into a agreement with the European Bank for Reconstruction and Development to provide financing for critical projects supporting energy sector transformation, economic decarbonization, and broader economic development initiatives. Concurrently, Citi Handlowy's brokerage division played a pivotal role in two accelerated share offerings for Allegro.eu, collectively valued at PLN 3 billion. In a testament to its comprehensive client solutions, Citi Handlowy delivered a full suite of services, including trade and working capital financing, to a leading pharmaceutical distributor with annual revenues of $1 billion. Demonstrating its commitment to innovation and client-centric solutions, Citi Handlowy also developed bespoke digital currency solutions for Jeronimo Martins, enabling the company to automate exchange rate risk management. These initiatives underscore Citi Handlowy's capability to provide tailored solutions that address specific client needs.
Citi Handlowy participated in a syndicated financing transaction, exceeding PLN 1 billion, for a prominent capital group within the IT sector. Additionally, the bank initiated a key partnership as the primary financial institution for Kaucja.pl, the operator of the National Deposit System.
Citi Handlowy continues to enhance its digital capabilities, integrating the latest global solutions for institutional banking clients. Recently, the bank launched CitiVelocity, an innovative currency exchange platform. This trading execution tool is recognized as a leading system in the market, particularly valued for its performance during periods of significant market volatility. Beyond its execution capabilities, CitiVelocity offers access to unparalleled global expertise. Furthermore, Citi Handlowy successfully implemented the global Digital Signer Management solution. This worldwide deployment by Citi was recognized with the "2025 Digital Banker Global Transaction and Innovation Awards" in August.
„It was a strong business quarter in our Institutional Banking. We are growing our revenues in all key areas, and at the same time we maintain strong cost discipline. The cost-to-income ratio was only 20% in the quarter. As a result, the net profit of Institutional Banking increases by as much as 10% y/y” said Chief Financial Officer Patrycjusz Wójcik. „The bank's capital position is very strong. The TLAC capital ratio above 27% allows us to share the capital surplus with shareholders, which we mentioned when announcing the strategy of our Global Business Bank. Our intention is to pay PLN 449 million stillthis year following regulatory approval,” he added.
In Citi Handlowy's Consumer Banking, the last quarter was another one with a growing number of affluent clients (+10% y/y). Deposit balances increased by 6% y/y and funds in investment products were higher by 16% y/y. The balance of mortgage products grew by 2% y/y. The value of foreign exchange transactions in the second quarter increased by 14% y/y. The number of foreign currency accounts increased by 2% y/y, and the number of customers using the multi-currency card function increased by 19% y/y.
Citi Handlowy maintained a strong position on the credit card market in terms of value of loans granted on credit cards (with a market share of 15.3% as at the end of June 2025). The sales volume of cash loans and credit card loans in the second quarter increased by 19% y/y. The balance of the cash loan increased by 6% y/y.
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