Institutional Sign In


Bank Ochrony Srodowiska - Takeaways from 2Q2023 Results

Jiří Staník
August 24, 2023

 Bank Ochrony Srodowiska made a loss of PLN 1.24 mil in 2Q2023 implying ROE of -0.24%.

 Revenues increased 2.2% yoy and adj. cost rose 14.4%, so cost to income increased to 45.8%

Cost of risk amounted 5.0% as PLN 119 mil of provisions were created for CHF-mortgage portfolio. 

Loan to deposit ratio decreased to 54.9% and capital adequacy increased to 16.1%

Bank Ochrony Srodowiska made a net loss of PLN 1.24 mil in the second quarter of 2023, or a decrease of PLN 61.7 mil in absolute terms. Higher provisions for CHF-mortgages were the single reason for the deterioration as operating profit was 2.4% off last year's numbers only:

Revenues & Costs

Revenues increased 2.2% yoy to PLN 264 mil in the second quarter of 2023. Net interest income rose 10.6% yoy as net interest margin increased  to impressive 3.86% of total assets last quarter. While fees grew 4.7% yoy, other/trading income was PLN 16.3 mil lower. Still, when compared to three years ago, revenues were up 68.4%:

Average asset yield was 7.44% in the second quarter of 2023 (up from 4.96% a year ago) and average yield of customer loans increased to 9.41%. Cost of funding increased slower to to 3.95% in 2Q2023 (up from 1.57%) and the Bank paid on average 2.51% to its depositors:

Costs increased by 14.4% yoy when adjusted for a contribution to the Bank Guarantee Fund last year (or 8.26% yoy reported) and the bank operated with average cost to income of 45.8% in the last quarter. Staff cost rose 17.5% as the bank employed almost 11% more people than last year while other costs rose 6.9% yoy:

Loans, Deposits and Capitalization

Loan portfolio continues to shrink falling further  1.23% qoq (down 10.9% yoy). Customer deposit also fell, by 0.17% qoq and 4.9% yoy respectively.

At the end of second quarter of 2023, Bank Ochrony Srodowiska's loans accounted for 54.9% of total deposits and 46.9% of total assets.

Retail loans fell 6.2% qoq and were 26.4% down yoy accounting for a fitfh of the loan book at the end of the second quarter of 2023. Mortgages represented 18% of the Bank Ochrony Srodowiska's loan book, consumer loans added a further 4.28% and corporate loans formed 77.6% of total loans:

We estimate that Bank Ochrony Srodowiska has lost 0.084 pp market share in the last twelve months in terms of loans (holding 0.659% of the market at the end of 2Q2023). On the funding side, the bank seems to have lost 0.122 pp and held 0.929% of the deposit market:

Bank Ochrony Srodowiska created further PLN 119 mil provisions for its CHF-denominated mortgage portfolio in the last quarter. As a result, loan loss provisions have "eaten" almost 92% of operating profit and cost of risk reached 5.0% of average loans.

Share of non-performing loans remains high relative to the sector, it reached 16.8% of total loans while provision coverage of 62% of NPLs is at the lower end of the Polish banking universe.

Bank Ochrony Srodowiska's capital adequacy ratio reached 16.1% in the second quarter of 2023, up from 14.3% for the previous year. The Tier 1 ratio amounted to 15.5% at the end of the second quarter of 2023 while bank equity accounted for 19.9% of loans:


Overall, Bank Ochrony Srodowiska made a net loss of PLN 1.24 mil in the second quarter of 2023. This means an annualized return on equity of -0.239% in the last quarter or 4.99% when the last four quarters are taken into account:



BOS announced relatively weak quarterly results when compared to other Polish banks. Apart from the high provisioning on the CHF-mortgage portfolio, the main difference is seen in falling loans and deposits and high share of non-performing loans.

For more details, download the data in excel format at 

Jiří Staník
Jiří Staník
CEO & Founder
He spent nearly two decades analysing companies in the region of Central and Eastern Europe, primarily in the area of financial services. Jiri built and headed Equity Research at Wood & Company, a Central European brokerage firm, and got several awards (such as The Best Equity Research or The Best Analyst by Euromoney).