The second quarter of 2025 was a period of strategic transformation for Citi Handlowy. In May, the bank announced the sale of its retail banking operations to VeloBank and outlined new directions for its development as a Global Business Bank. As part of its strategy, Citi Handlowy is focusing on delivering key national priorities, such as defence and energy transition. The bank is concentrating on supporting businesses with international needs, global companies operating in Poland, and public institutions.

In the second quarter of 2025, the bank's net profit amounted to PLN 166 million, impacted by the previously announced loss related to the sale of the retail banking operations of PLN 381 million net. Excluding the impact of this transaction, the bank's profit would have amounted to PLN 546 million — a result 26% higher quarter-on-quarter. The ROE ratio stood at nearly 18%, and the TLAC TREA capital ratio reached 27.1%.

"This was an exceptional quarter. With the announcement of the sale of our retail banking operations to VeloBank, we are building a 'new' bank and repositioning Citi Handlowy. I am very pleased that the new strategic objectives are already reflected in our results. Revenues and assets in institutional banking are growing — and at a faster pace than the market average. In the second quarter, we recorded loan growth in this area of 19% year-on-year. We are present in the most significant and largest corporate transactions, and we are actively working on projects in the areas of defence and energy transition. Equally important, we are delivering on our corporate strategy by sharing profits with our shareholders. This year we paid the second highest dividend in our history, amounting to PLN 1.3 billion. In addition, the regulator approved the distribution of the 2019 profit, as we announced in May," said Elżbieta Czetwertyńska, President of the Management Board of Citi Handlowy. "Preparations for the migration of the retail business are proceeding according to plan, and we expect the process to be finalised in mid-2026, subject to obtaining the relevant regulatory approvals," the President added.

Citi Handlowy's total revenues amounted to PLN 1.1 billion (+1% year-on-year), supported by very strong performance in treasury activities. Net interest income decreased by 5% year-on-year to PLN 762 million, while net fee and commission income was 1% lower year-on-year, standing at PLN 147 million. The bank's operating expenses including depreciation amounted to PLN 393 million, representing an increase of 11% compared to the same period in 2024. The total loan balance grew by 17% year-on-year, and deposits by 19% year-on-year. The cost-to-income ratio stood at 35%.

In Institutional Banking, loans in the second quarter grew above GDP growth dynamics quarter-on-quarter (7%) and by as much as 19% year-on-year, compared to an average sector growth of 6%. The bank extended 36% more new and increased financing to its corporate clients year-on-year. The most dynamic growth (43% year-on-year) was recorded among the largest corporate clients, as well as in Enterprise Banking (20% year-on-year).

The bank signed a further agreement with the European Bank for Reconstruction and Development to finance projects related to the transformation of the energy sector, decarbonisation of the economy, and support for economic development. Citi Handlowy's Brokerage House participated in two accelerated bookbuilding transactions for Allegro.eu shares with a combined value of PLN 3 billion. The bank provided a comprehensive range of solutions — including trade finance and working capital financing — to one of the largest pharmaceutical distributors to hospitals, with annual revenues of USD 1 billion. Citi Handlowy also developed digital foreign exchange solutions for Jeronimo Martins, enabling the company to automate its foreign exchange risk management. This is one example of Citi Handlowy delivering tailored solutions in response to specific client needs.

In addition, Citi Handlowy participated in a syndicated financing transaction for a large IT capital group valued at over PLN 1 billion. The bank also commenced cooperation as the main bank for Kaucja.pl, the operator of the National Deposit Return System.

Citi Handlowy is also becoming increasingly digital and is introducing the latest global solutions for its institutional banking clients. In recent weeks, the bank launched the new CitiVelocity foreign exchange platform — a transaction execution tool that remains one of the most innovative systems on the market, particularly valued during periods of high volatility. CitiVelocity also provides access to unique global expertise. The bank also implemented the global Digital Signer Management solution — Citi's global rollout of this tool was recognised in August with the "2025 Digital Banker Global Transaction and Innovation Awards."

"This was a strong business quarter for our Institutional Banking division. Revenues are growing across all key areas while we maintain strong cost discipline. The cost-to-income ratio this quarter stood at just 20%. As a result, Institutional Banking net profit is growing by as much as 10% year-on-year," said Patrycjusz Wójcik, Vice President of the Management Board for Finance.

"The bank's capital position is very strong. A TLAC capital ratio above 27% allows us to implement the policy of sharing surplus capital with shareholders, as we outlined when announcing the Global Business Bank Strategy. Our intention is to distribute PLN 449 million still this year, in line with the regulator's positive opinion," the Vice President added.

In Retail Banking, the second quarter was another period of growing numbers of affluent clients for Citi Handlowy (+10% year-on-year). Deposit balances grew by 6% year-on-year, while funds in investment products were 16% higher year-on-year. The mortgage product balance increased by 2% year-on-year. The value of foreign exchange transactions in the second quarter grew by 14% year-on-year. The number of foreign currency accounts grew by 2% year-on-year, and the number of clients using the multi-currency card feature increased by 19% year-on-year.

Citi Handlowy maintained a strong position in the credit card market in terms of the value of credit extended on credit cards (with a market share of 15.3% based on data as at the end of June 2025). The sales volume of cash loans and credit card loans in the second quarter grew by 19% year-on-year. The cash loan balance grew by 6% year-on-year.