Understanding our second quarter 2025 results

Letter to shareholders N°147

Dear shareholders,

Once again this quarter, we are reporting strong results, driven by solid commercial and financial performance in all our businesses. These results confirm the sustained improvement in our performance, at a key time when we are embarking on the second phase of our strategic plan. Our first-half results are ahead of all our annual financial targets, allowing us to revise upwards the 2025 financial targets.

Our half-year revenues amounted to EUR 13.9 billion, up +8.6%¹ compared to the first half of 2024. The Group’s net income came, to EUR 3.1 billion for the first half of the year, is up sharply by +71% compared to the first half of 2024. This performance is reflected in the high level of return on tangible equity (ROTE) at 10.3%², allowing us to raise our 2025 ROTE target to ~9% compared to >8% previously.

We continued to maintain strict control over costs in the first half of 2025, down -2.6% compared to the first half of 2024, excluding the impact of asset disposals. As a result, we are ahead of our targeted reduction of more than -1%. We have also improved our operating leverage with a cost-to-income ratio of 64.4% in the first half of 2025, below our initial target of <66% for 2025. Therefore, we have decided to raise our 2025 target, which is now below 65%. The cost of risk remained under control in the first half of the year at 24 basis points, below our 2025 target of between 25 and 30 basis points. 

At the same time, the steady improvement in the performance of our businesses and our significant capital position enable us, as we committed to strengthen the creation of shareholder value. We have announced a first distribution of excess capital in the form of an additional share buy-back of EUR 1 billion. Also, we will distribute an interim dividend of EUR 0.61³ per share for the first half of 2025, to be paid on 9 October 2025. 

Our CET1 capital ratio remains solid at 13.5%⁴ as of 30 June 2025, around 330 basis points above the regulatory requirement. The ratio takes into account this additional share buyback.

These results confirm the strength of our business model and our ability to execute our strategic plan effectively in a still challenging environment.

I would like to sincerely thank all our teams for their commitment to our clients and to our Bank. We remain fully committed on the detailed and focused execution of our 2026 roadmap, to continue delivering a sustainable and profitable growth for the benefit of all our stakeholders. 

I would like to thank you for the trust you have placed in our Group and your long-term commitment to us.

Slawomir Krupa
Chief Executive Officer

1 Excluding asset disposals
2 Above the initial target of ROTE of >8% for 2025
3 Out of a total contemplated distribution accrual of EUR 1.77 per share at end H1 25 based on a pay-out ratio of 50% of the H1 25 Group net income restated from non-cash items (including GESOP) and after deduction of interest on deeply subordinated notes and undated subordinated notes, pro forma including H1 25 results and including interim cash dividend; the distribution policy being based on a balanced mix of the payout between cash dividend and share buy-back 
4 Including Basel IV phasing