Dear Shareholders,
				
					2024
					 
					was
					 
					a
					 
					good
					 
					year
					 
					for
					 
					the
					 
					banking
					 
					sector
					 
					in
					 
					Poland,
					 
					as
					 
					well
					 
					as
					 
					for
					 
					the
					 
					Bank
					 
					Pekao
					 
					Group.
					 
					The 
					parameters
					 
					of
					 
					monetary
					 
					policy
					 
					did
					 
					not
					 
					change
					 
					over
					 
					the
					 
					year.
					 
					This
					 
					supported
					 
					maintaining
					 
					the
					 
					interest 
					margin
					 
					at
					 
					a
					 
					stable
					 
					level,
					 
					which,
					 
					combined
					 
					with
					 
					the
					 
					development
					 
					of
					 
					lending,
					 
					contributed
					 
					significantly
					 
					to
					 
					the 
					profitability of banks.
				
				
					The
					 
					economic
					 
					situation
					 
					remains
					 
					favorable
					 
					for
					 
					the
					 
					quality
					 
					of
					 
					the
					 
					sector's
					 
					assets.
					 
					The
					 
					situation
					 
					on
					 
					the
					 
					labor 
					market,
					 
					where
					 
					wage
					 
					growth
					 
					has
					 
					clearly
					 
					exceeded
					 
					the
					 
					average
					 
					price
					 
					growth
					 
					for
					 
					some
					 
					time
					 
					now,
					 
					and
					 
					the 
					economy
					 
					is
					 
					close
					 
					to
					 
					full
					 
					employment,
					 
					favors
					 
					very
					 
					low
					 
					risk
					 
					costs
					 
					in
					 
					the
					 
					area
					 
					of
					 
					retail
					 
					banking.
					 
					In
					 
					corporate 
					banking,
					 
					apart
					 
					from
					 
					individual
					 
					cases
					 
					of
					 
					borrower
					 
					problems,
					 
					we
					 
					do
					 
					not
					 
					observe
					 
					negative
					 
					credit
					 
					events
					 
					of
					 
					a 
					broader nature.
				
				
					The
					 
					banking
					 
					sector,
					 
					to
					 
					a
					 
					greater
					 
					extent
					 
					than
					 
					Bank
					 
					Pekao,
					 
					continued
					 
					to
					 
					struggle
					 
					with
					 
					the
					 
					problem
					 
					of
					 
					foreign 
					currency
					 
					mortgage
					 
					loans.
					 
					Although
					 
					the
					 
					scale
					 
					of
					 
					provisions
					 
					for
					 
					these
					 
					loans
					 
					has
					 
					already
					 
					reached
					 
					a
					 
					high 
					level,
					 
					this
					 
					still
					 
					does
					 
					not
					 
					mean
					 
					the
					 
					end
					 
					of
					 
					the
					 
					problems.
					 
					We
					 
					owe
					 
					the
					 
					fact
					 
					that
					 
					systemic
					 
					risk
					 
					threatening
					 
					the 
					stability
					 
					of
					 
					the
					 
					sector
					 
					does
					 
					not
					 
					materialize
					 
					to
					 
					the
					 
					favorable
					 
					business
					 
					environment.
					 
					I
					 
					am
					 
					anxious
					 
					about 
					other legal risks that are looming on the horizon.
				
				
					The
					 
					large
					 
					share
					 
					of
					 
					treasury
					 
					bonds
					 
					in
					 
					bank
					 
					balance
					 
					sheets
					 
					means
					 
					that
					 
					the
					 
					banking
					 
					sector
					 
					remains
					 
					more 
					dependent
					 
					on
					 
					investors'
					 
					valuation
					 
					of
					 
					the
					 
					risk
					 
					of
					 
					these
					 
					instruments
					 
					as
					 
					a
					 
					derivative
					 
					of
					 
					the
					 
					development
					 
					of 
					the
					 
					country's
					 
					economic
					 
					situation.
					 
					The
					 
					scale
					 
					of
					 
					the
					 
					announced
					 
					public
					 
					investments
					 
					is
					 
					optimistic.
					 
					I
					 
					hope
					 
					that 
					it
					 
					will
					 
					be
					 
					a
					 
					driving
					 
					force
					 
					for
					 
					the
					 
					growth
					 
					of
					 
					private
					 
					investments
					 
					and
					 
					the
					 
					improvement
					 
					of
					 
					the
					 
					economic 
					situation.
					 
					Consequently,
					 
					it
					 
					will
					 
					allow
					 
					for
					 
					more
					 
					effective
					 
					allocation
					 
					of
					 
					capital
					 
					entrusted
					 
					to
					 
					banks.
					 
					We
					 
					are 
					ready
					 
					to
					 
					wait
					 
					for
					 
					the
					 
					growth
					 
					of
					 
					investment
					 
					activity
					 
					of
					 
					enterprises.
					 
					We
					 
					hope
					 
					that
					 
					the
					 
					banking
					 
					sector
					 
					will
					 
					be 
					able to better use its potential.
				
				
					The
					 
					geopolitical
					 
					situation
					 
					in
					 
					the
					 
					world
					 
					and
					 
					its
					 
					consequences
					 
					for
					 
					the
					 
					Polish
					 
					economy
					 
					have
					 
					gained
					 
					in 
					importance,
					 
					which
					 
					will
					 
					not
					 
					be
					 
					without
					 
					significance
					 
					for
					 
					the
					 
					economic
					 
					situation
					 
					in
					 
					Poland.
					 
					In
					 
					the
					 
					perspective 
					of
					 
					2025,
					 
					we
					 
					expect
					 
					a
					 
					moderate
					 
					easing
					 
					of
					 
					monetary
					 
					policy,
					 
					which
					 
					will
					 
					have
					 
					the
					 
					greatest
					 
					impact
					 
					on
					 
					the 
					profitability
					 
					of
					 
					the
					 
					banking
					 
					sector
					 
					and
					 
					Bank
					 
					Pekao.
					 
					The
					 
					expected
					 
					reduction
					 
					in
					 
					interest
					 
					rates
					 
					may
					 
					be
					 
					a 
					signal
					 
					for
					 
					investments.
					 
					Other
					 
					trends
					 
					that
					 
					have
					 
					been
					 
					visible
					 
					in
					 
					the
					 
					banking
					 
					sector
					 
					and
					 
					Bank
					 
					Pekao
					 
					for
					 
					some 
					time
					 
					now,
					 
					such
					 
					as
					 
					cost
					 
					pressure,
					 
					low
					 
					share
					 
					of
					 
					commission
					 
					income,
					 
					stable
					 
					risk
					 
					costs
					 
					will
					 
					continue. 
					I
					 
					see
					 
					increased
					 
					activity
					 
					in
					 
					the
					 
					area
					 
					of
					 
					mergers
					 
					and
					 
					acquisitions
					 
					of
					 
					European
					 
					banks,
					 
					which
					 
					may
					 
					have
					 
					an 
					impact on the banking sector in Poland.
				
				
					Financial results
				
				
					Operating
					 
					income
					 
					in
					 
					2024
					 
					amounted
					 
					to
					 
					PLN
					 
					16.0
					 
					billion,
					 
					which
					 
					was
					 
					6%
					 
					higher
					 
					than
					 
					income
					 
					achieved
					 
					in 
					2023,
					 
					mainly
					 
					due
					 
					to
					 
					net
					 
					interest
					 
					income.
					 
					Net
					 
					interest
					 
					income
					 
					earned
					 
					in
					 
					2024
					 
					amounted
					 
					to
					 
					PLN
					 
					12.7
					 
					billion 
					and
					 
					was
					 
					7%
					 
					higher
					 
					than
					 
					in
					 
					the
					 
					previous
					 
					year,
					 
					thanks
					 
					to
					 
					higher
					 
					volumes
					 
					and
					 
					a
					 
					stable
					 
					interest
					 
					margin, 
					despite
					 
					the
					 
					inclusion
					 
					of
					 
					the
					 
					costs
					 
					of
					 
					the
					 
					so-called
					 
					credit
					 
					holidays
					 
					in
					 
					the
					 
					amount
					 
					of
					 
					PLN
					 
					153
					 
					million.
					 
					Net 
					fee
					 
					and
					 
					commission
					 
					income
					 
					achieved
					 
					in
					 
					2024
					 
					amounted
					 
					to
					 
					PLN
					 
					2.9
					 
					billion
					 
					and
					 
					was
					 
					only
					 
					2%
					 
					higher
					 
					than 
					in
					 
					the
					 
					previous
					 
					year,
					 
					which
					 
					resulted
					 
					from
					 
					the
					 
					fact
					 
					that
					 
					the
					 
					Bank's
					 
					fee
					 
					table
					 
					has
					 
					not
					 
					changed
					 
					significantly 
					for
					 
					several
					 
					years.
					 
					The
					 
					aforementioned
					 
					small
					 
					increase
					 
					was
					 
					achieved,
					 
					among
					 
					others,
					 
					thanks
					 
					to
					 
					higher
					 
					fees 
					from
					 
					investment
					 
					funds,
					 
					thanks
					 
					to
					 
					higher
					 
					gross
					 
					sales
					 
					and
					 
					a
					 
					higher
					 
					level
					 
					of
					 
					assets
					 
					under
					 
					management. 
					Operating
					 
					expenses
					 
					in
					 
					2024
					 
					amounted
					 
					to
					 
					PLN
					 
					5.2
					 
					billion
					 
					and
					 
					were
					 
					higher
					 
					by
					 
					PLN
					 
					0.6
					 
					billion,
					 
					i.e.
					 
					by
					 
					13% 
					compared
					 
					to
					 
					2023,
					 
					mainly
					 
					due
					 
					to
					 
					inflationary
					 
					indexation
					 
					of
					 
					salaries,
					 
					variable
					 
					parts
					 
					of
					 
					personnel
					 
					costs 
					related
					 
					to
					 
					the
					 
					result
					 
					and
					 
					the
					 
					reserve
					 
					for
					 
					the
					 
					voluntary
					 
					departure
					 
					program.
					 
					The
					 
					result
					 
					of
					 
					write-offs
					 
					for 
					expected
					 
					credit
					 
					losses
					 
					of
					 
					the
					 
					Bank
					 
					Pekao
					 
					Capital
					 
					Group
					 
					in
					 
					2024
					 
					increased
					 
					to
					 
					PLN
					 
					0.8
					 
					billion,
					 
					i.e.
					 
					by
					 
					41%