Okay, it's 2:00 P.M., so we're good, we are good to go. Hello, everyone. Thank you for joining the presentation of consolidated financial results for the second quarter of 2024 for Bank Handlowy w Warszawie S.A. I'm Maciej Krywoniuk, Head of Strategy, and with me today is Adam Pioterek, who is responsible for Investor Relations, and good to see you all after the holiday break, and we will go through the presentation, and following the presentation, we'll be opening up for questions. So before I go into the details of the financial results in the second quarter, maybe in the opening statement, just two comments. The first one on the Consumer Bank exit.
So basically, as previously, we will not be commenting on the sale process of Consumer Bank. When there will be information to share, we will be publishing the Warsaw Stock Exchange reports. I will cover the performance of the Consumer Bank in more detail during the presentation, of course. And, as you have probably noticed, there was goodwill impairment, we have published the current report on August fourteenth. The impairment is linked to the semiannual tests we perform regularly. And just wanted to share with you that this is a one-off event linked to growing cost pressures, which we see in the forecasted cash flows for the consumer business.
At the same time, there is strong performance we are seeing in the forecast of the institutional banking. With this initial comments, let me move to the summary of the financial results, and I will be referring to the presentation, which you can find on our webpage under the Investor Relations section. So, slide two of the deck that you also see on the screen. So this was the quarter with the revenue above PLN 1 billion, with net income of PLN 394 million. As just mentioned, the net profit figure was impacted by this one-off event of PLN 180 million goodwill impairment. Looking at the returns, still very healthy ROE at 22.8%.
I will be covering the balance sheet in more detail. On the headline numbers, the lending was down 7%, and the deposit grew 5%. The total capital ratio was well above the regulatory requirements at the level, and it ended up the quarter at the level of 23.6%. Moving on to the segment performance, the key highlights, definitely strong revenue performance with 6% increase on the institutional banking side. The strong results supported by FX, brokerage, and custody operations. Good quarter in the FX with the volume growth of 9% quarter over quarter, with the driver of commercial banking clients, primarily.
In terms of the lending, going into a little bit more details, so that was second quarter in a row of higher loan volumes in the institutional banking segment, primarily in commercial and corporate banking segments, and linked with the loan growth, we have been communicating the target of PLN 1 billion financing and sustainable lending. It's my pleasure to share with you that with the implementation of sustainable product classification framework, we have reached the goal, and one of the examples here is the PLN 1.8 billion of syndicated facility for CCC Group, where we were part of, and this was connected with sustainability-linked KPIs.
On the consumer banking side, it was impacted by the one-off events, including credit holidays. With the one-off, the top line decreased by 8% quarter over quarter. The lending portfolio increased by 2% quarter on quarter. It was a mix of unsecured terms and mortgage. Primarily, the mortgage lending was driving the growth, and one of our core strategic areas, the wealth management, strong set of drivers I will cover in more details with good performance and FX on the Citi Kantor, which is appreciated by our clients, and used heavily, especially in the vacation period, and on cards acquisition, we recorded the growth.
It was not as dynamic as you would expect, 2% quarter over quarter, but it's important to say that we have recorded high rates in the previous quarter, where the growth was 14%. Okay, so let's move on to the next slide, which is slide three, where I will cover more details of the drivers from the institutional banking segments. As mentioned, second quarter of growth. So we were growing at 4%, excluding 4%. So basically, this was higher than the sector where, as you can see, the sector grew 3%. Commercial banking, corporate clients, these were two segments growing more dynamically. A little bit less growth in the, in fact, slight decline in the Global Clients segment.
However, if you look at the new lending, in total for the institutional clients, it was above two billion Polish złoty. So it's four times compared to year over year and three times compared to quarter over quarter. On the deposit side, healthy growth across all segments. In the global clients segment, there is a flattish deposit base. We can explain that by the fact that there are signs of shifting the deposit balances into investment products which are conducted and kicked off by the global banking clients.
So on slide four, I will not be going into the details, but just a few examples of key transactions that we performed in the second quarter, ranging from lending, including the environmental initiatives, including some services for Polski System Recyklingu, which is linked to the creation of packaging, the packaging deposit and recycling system. There were signs of recovery on the capital markets, where we have been global coordinator for Allegro in the book building for share transactions. Good traction on the client activity reflected in the PNL this quarter in the institutional banking. Moving on to the consumer bank, slide number five.
Again, here, the growth that we recorded on the lending portfolio was above the market. The mortgage lending grew by 3% quarter over quarter, and the unsecured loans portfolio grew 2%. When you look at the mortgage lending, the sale of mortgage loans in the first half was three times higher compared to the same period last year. On the deposit side of the balance sheet, flattish time deposits and the current account balance is 1% down. This is linked to the fact that there is shift happening and our clients are moving their deposit balances to investment products. These are less risky asset classes, but the shift is happening and we can clearly see that.
I've mentioned the vacation periods, so basically, Citi Kantor was hit heavily with majority of the volume processed in the quarter. Briefly, June is this month where we in Citi held the Global Community Day. This year was no different. There were almost 3,700 Citi volunteers, where they participated in different kinds of volunteering projects with more than 20,000 beneficiaries. So as you can see on the pictures, there was a lot of happening. And it was not only our employees, but also we were supported by our alumni, the NGOs and local governments. So it was our commitment to the social responsibility that was happening.
It's happening throughout June, the landmark, and there is much more happening in June than in other months. Coming back to the business performance, so slide 8, which is the revenue summary. So this is the second quarter of the growth. I've mentioned we have been above the PLN 1 billion mark, and basically, this is despite some one-offs that amount to around PLN 30 million, and segment-wise, the institutional banking was the driver of growth, with a 6% growth quarter over quarter, and this was driven by the client activity.
As you can see, transactional banking is around almost 70% of the contribution, and so this is primarily the cross-border transactions that we have recorded this quarter and trade products that positively contributed to the top line. There was also activity in the capital markets. I've mentioned some of the transactions on the previous slide. As on the opening slide, custody and brokerage were positively contributing along with FX. A few words of comments on the consumer banking, which decreased 8% quarter over quarter. However, excluding the one-offs, we will be recording growth quarter over quarter, and these are primarily cards and lending, both mortgage and unsecured, that are positively contributing to the top line.
Moving on to the net interest income, next page. So, as you can see, the net interest income was at the level of PLN 805 million, slightly up versus the first quarter, with again institutional banking positively contributing both on the debt securities portfolio, where the portfolio grew compared to the previous quarter, and growing volumes of lending that I have shared with you, and basically on the consumer banking, ex it's 3% down, but ex Credit Holidays, it will be up 3%. We are maintaining the cost of discipline in the deposit portfolio. And I've mentioned the shift to money market funds, and there is this positive contribution from both mortgage and unsecured lending.
The house view is that the rates will be going down with quarter 2025, so the rate cuts are ahead of us, but there is still a little bit of time until they happen, so this will be a period where the rates will be helping our net interest income line. The fees and commission income, this is in a way a pulse of our client activity. And it's my pleasure to share with you that the 148 figure and the PLN 148 million that we recorded this quarter, we have been checking it, and the last time we were at similar levels was the fourth quarter of 2015, so this is the highest fee performance in the last few years.
Again, institutional banking with primarily custody, which is up 13% and fees quarter over quarter, and brokerage, which was plus 12% quarter over quarter, were primarily contributing to the growth. On the consumer banking side, it was at the similar level, 38 previous quarter, 37 million this quarter, and costs were primarily contributing plus 8% quarter over quarter. The investment insurance products, the sales were growing with 10%. They recorded 10% growth. However, I shared with you the product mix that is skewed toward lower margin products, and this is the reflection of the mix that we can see in the fee commission line, so these were the highlights of fees.
Moving on through to treasury, which is what you see is that on the side of both the client and investment activity, and the treasury result, PLN 832 million, is the highest in the last five quarters. It's a solid mix of both the net interest income and gains. We have realized PLN 21 million of AFS gains in the second quarter. When you look at the portfolio, there is shifts happening towards debt securities, and we are seeing less reverse repo transactions in the second quarter. It's important to stress that the debt securities are high quality debt securities and with adequate risk profile.
Having in mind the gains, it's also important to stress that the revaluation reserve is at the level of PLN 180 million for the second quarter, so still significantly, you know, above last year. And basically, just a slight comment on the income on the tax. On the client side, the 2% growth was primarily driven by the commercial banking client activity, so the reversal of trends from the last quarter on the tax revenues from the clients. Last but not least, expenses. So this is a reflection of our commitment to strong cost discipline.
The headline number, 25% down, is really a function of the regulatory expenses that we have clearly indicated on the slide, which amounted to PLN 99 million in the last quarter. The key figures that you can see, the staff expenses are down, but in the second quarter, however this is a function of the lower social security fund costs. And we have also completed the refurbishment of our headquarters building. And this is, you know, very modest type of building, where energy efficiency is at a much higher level compared to before. It's also positively contributing to the admin expenses that we recorded in the second quarter.
Just one comment to what you can see on the right-hand side of the slide. There are growing regulatory costs, links, and what I have here in mind is really the consulting expenses. There are several projects we are also working on, including regulatory projects and some transformational projects, and these are driving the consulting expenses. You can also see higher depreciations, which is connected with IT projects and investments in our infrastructure. All in all, very healthy cost income level at the 32%. On the cost of risk, that's release of provisions, and you can see it on the slide, the second quarter, where primary driver was the NPL portfolio sale in the customer banking.
There were also some one-off events that were impacting the institutional banking side. There were slight change to the IFRS 9, where we were reflecting the macro assumptions in our models. These are primarily drivers of the release of provisions that you can see in the cost of risk line for the second quarter. Important to say that both NPL and the cost of risk levels are at the levels that are better compared to the sector, and this is the reflection of our credit portfolio quality and our risk profile. In a nutshell, this is the summary and the headlines of the financial performance in the second quarter. This is the time when I'm opening up to questions.
Okay, so, in case there is anything you would like to find out more, please reach out to our investor relations mailbox. You have the address, the email address on the webpage, and you've got our contact details. So, please stay in touch, and thank you very much for joining. Wishing you all the best for the rest of Friday, and have a good weekend, and hope to see you soon. Thank you.