Fees Are Only a Sixth of the IncomeThin moat

PKO Bank Polski (PKO) — moat facet

5,2 billion złoty of fees against 24,2 billion of interest income is a bank that earns almost everything from the spread.

Net interest income was 24 223 million złoty in 2025 and net fee and commission income 5 243 million, of a result on business activities of 30 370 million1 — so interest is 79,8% of what the bank earns and fees are 17,3%.

The income lines, FY2025 against FY2024 (zl m)22 153Net interest 202424 223Net interest 20255 120Fees 20245 243Fees 2025Interest income +9,3%; fee income +2,4% - the cushion is growing slower than the thing it cushions
Fees are 17,3% of the result on business activities and rose at a quarter of the pace of the spread they exist to replace.

That is a high proportion even for a retail bank, and it means PKO's income statement is a levered bet on the National Bank of Poland. Western European banks with large asset-management, insurance or transaction-banking arms typically run fee income near a third of revenue, which cushions them through rate cycles. PKO does not have that cushion.

Fees are also growing slowly: up 2,4% in 2025 against interest income up 9,3%2, so the mix is becoming more interest-dependent rather than less.

This is what the Allegro partnership and Automarket are aimed at — fee and commission streams attached to an existing customer base3 — and it is why those bets matter more than their current size suggests.

The exposure is already visible. The interest margin fell from 4,91% to 4,47% in the first half of 20264 and interest income fell 1 213 million złoty5, with volume growth of 13,9% making up the difference.

It is worth noting what a bank with PKO's distribution could plausibly sell. It reaches 12 460 thousand customers6 through 8,7 million active mobile installations7, which is a channel most fee-generating businesses would pay a great deal to rent — and PKO has been using it to distribute somebody else's marketplace credit rather than its own asset management.

The measure is fee income as a share of the total. At 17,3% PKO is a spread business. Moving toward a quarter would mean the ecosystem bets are working and the next rate cycle would hurt less.

Moat trajectory: Holding steady

5 243 million złoty of fees against 5 120 million - up 2,4% while net interest income rose 9,3%. The diversification is not happening fast enough to matter.

The number that tests this moat
Moat Explorer calc
Fee income as a share of the result on business activities
17,3%, growing 2,4% a year

Fees of 5 243m złoty against a total of 30 370m. This is the line that would cushion a falling interest margin, and it grew at a quarter of the pace of the margin it is meant to replace. The number to watch is fee growth against net interest income growth, not the level.

Source: PKO Bank Polski S.A. Group Directors' Report for 2025 ↗
⚠ Threats to the moat
⚠ THREAT 01
Fee Income Is Growing Slower Than the Spread It Should Replace
The line meant to cushion a falling margin is growing more slowly than the margin is falling.
References
  1. Moat Explorer calcNet interest income was 24 223 million złoty in 2025 and net fee and commission income 5 243 million, of a result on business activities of 30 370 million — so interest is 79,8% of what the bank earns and fees are 17,3%.
    Moat Explorer calculation - arithmetic on figures PKO reports: the Swiss franc charge as a share of net profit (4 365 over 10 682), financing per employee (315 953 over 26 252 against 247 572 over 25 657), current accounts as a share of customers (9 764 over 12 460), deposits less financing (460 722 less 315 953), and the levy against fee income (1 349 over 5 243), credit losses excluding legal risk (5 859 less 4 365 = 1 494), the income mix (24 223 and 5 243 over 30 370 = 79,8% and 17,3%), net profit growth (10 682 against 9 304 = 14,8%), financing per employee (315 953 over 26 252 = 12,0m), and customers against Poland's population (12,46m of 37,33m) — FY2021-FY2025 · publ. September 2026 · source ↗
  2. ReportedFees are also growing slowly: up 2,4% in 2025 against interest income up 9,3%, so the mix is becoming more interest-dependent rather than less.
    PKO Bank Polski S.A. Group Directors' Report for 2025 - the five-year record 2021-2025 (net profit from 4 874m złoty to 10 682m, return on equity from 12,1% through a 9,6% trough to 19,5%, cost-to-income from 40,4% and a 45,0% peak to 31,1%, interest margin from 2,70% to 4,76%, total assets from 418 086m to 583 079m and the year-end stock exchange capitalisations) — FY2021-FY2025 · publ. 12 March 2026 · source ↗
  3. ReportedThis is what the Allegro partnership and Automarket are aimed at — fee and commission streams attached to an existing customer base — and it is why those bets matter more than their current size suggests.
    PKO Bank Polski S.A. Group Directors' Report for 2025 - the customer base (12 460 thousand customers against 11 120 thousand five years earlier, 9 764 thousand current accounts, and more than 8,7 million active installations of the IKO mobile application) — FY2021-FY2025 · publ. 12 March 2026 · source ↗
  4. ReportedThe interest margin fell from 4,91% to 4,47% in the first half of 2026 and interest income fell 1 213 million złoty, with volume growth of 13,9% making up the difference.
    PKO Bank Polski S.A. Group Directors' Report for the six months ended 30 June 2026, published with reviewed financial statements (profit before tax of 8 319m złoty up 19,9%, income tax of 3 029m up 67,4%, net profit of 5 290m up 3,1%, return on equity of 19,3%, cost-to-income of 31,4%, interest margin of 4,47% against 4,91%, cost of risk of 0,29%, total assets past 608 448m, 12,6 million customers, common equity tier 1 of 15,55%, and a further 685m złoty of convertible-currency legal risk) — H1 2026 · publ. 13 August 2026 · source ↗
  5. ReportedThe interest margin fell from 4,91% to 4,47% in the first half of 2026 and interest income fell 1 213 million złoty, with volume growth of 13,9% making up the difference.
    PKO Bank Polski S.A. Group Directors' Report for the six months ended 30 June 2026, published with reviewed financial statements (profit before tax of 8 319m złoty up 19,9%, income tax of 3 029m up 67,4%, net profit of 5 290m up 3,1%, return on equity of 19,3%, cost-to-income of 31,4%, interest margin of 4,47% against 4,91%, cost of risk of 0,29%, total assets past 608 448m, 12,6 million customers, common equity tier 1 of 15,55%, and a further 685m złoty of convertible-currency legal risk) — H1 2026 · publ. 13 August 2026 · source ↗
  6. ReportedIt reaches 12 460 thousand customers through 8,7 million active mobile installations, which is a channel most fee-generating businesses would pay a great deal to rent — and PKO has been using it to distribute somebody else's marketplace...
    PKO Bank Polski S.A. Group Directors' Report for 2025 - the customer base (12 460 thousand customers against 11 120 thousand five years earlier, 9 764 thousand current accounts, and more than 8,7 million active installations of the IKO mobile application) — FY2021-FY2025 · publ. 12 March 2026 · source ↗
  7. ReportedIt reaches 12 460 thousand customers through 8,7 million active mobile installations, which is a channel most fee-generating businesses would pay a great deal to rent — and PKO has been using it to distribute somebody else's marketplace...
    PKO Bank Polski S.A. Group Directors' Report for 2025 - the customer base (12 460 thousand customers against 11 120 thousand five years earlier, 9 764 thousand current accounts, and more than 8,7 million active installations of the IKO mobile application) — FY2021-FY2025 · publ. 12 March 2026 · source ↗
Sources
Generated September 24, 2026