Hello, everyone. My name is Adam Piotrak. I'm the Head of Investor Relations at Citi Handlowy. Welcome to the earnings call for the fourth quarter of Citi Handlowy. I'm with Maciej Krywoniuk, Head of Strategy and Investor Relations. We'll go through the earnings presentation, which is available on the screen and also on our website. After the presentation, there will be a Q&A session. Maciej, over to you.
Thank you very much. I will be walking you through the presentation that was shared with you. It's also available on our webpage. Let me start on page number 2, which is a brief summary of 2025, which was a year for us where we converted client activity into growth. Just maybe as an introduction in terms of the migration of our consumer banking to VeloBank, it's pretty much on track and the planned migration as shared with you previously is mid-2026. In terms of the institutional banking, it's my pleasure to share with you that we are executing the strategy of growth in this segment, and quite a number of details will follow in the presentation.
In terms of the 2025 summary, very healthy growth of our institutional banking loan book. The growth was +22% YoY. It's translated into the highest level of the loan portfolio in institutional banking in history. It's at the same time 3x higher than the market growth dynamics. We, in a way, walk the talk here. In terms of the revenues, we increased revenues in every product group in 2025. We have 40% market share in the custody business in Poland. When you look at trade finance, which is one of the few engines of growth for our strategic direction, it's +29% YoY in terms of the value of assets. We have been implementing AI tools pretty much to increase employees' productivity and effectiveness.
Some of the tools are aimed at improving client experience. All in all, we were focused on generating value for shareholders. Our ROE for the year was 19.7%. Since we are a dividend company, 75% of dividend payout, the regulator allowed to pay out up to 75% of net profit for 2025. Coming back to fourth quarter, which is page 3 in the presentation. In terms of the top-line numbers, the revenue, it's PLN 880 million. Very solid net profit in the quarter at PLN 496 million. I've shared the ROE levels with you. The balance sheet was growing, 16% growth in the total loan book and 13% growth in total deposits.
I mean, the total bank here and growth details on the institutional portfolio will follow on the pages I'm gonna share with you in a second. Strong capital position with TLAC at the level of 25.4%. I mentioned the institutional banking client assets. The new financing amounted to PLN 1.4 billion that we granted to our clients in the fourth quarter. It translated into 2% growth quarter-over-quarter of the loan book. We were active in the client transactions on the capital markets, so we were investing in our technology and digitizing, you know, the processes. It's well received by our clients when you look at the number of transactions that were processed online.
The volume here increased by 7% QoQ. Lastly, the consumer banking business. Despite some of the migration-related activities, the business volumes are growing in this segment, and I mean here both the client portfolio and assets under management. The details will follow shortly. Now, moving on to page number 4, which is the institutional banking and the business volumes. I've shared with you that the loan book increased by 22% YoY. The quarterly growth was 2%. I think it's important to note that when you look at the portfolio level, which was above PLN 16 billion, we were able to increase the book by almost PLN 3 billion, which is a representation of the 50% of the consumer banking loan portfolio.
We have been declaring that we are gonna rebuild the client portfolio of consumer banking, which will be the merger. Last year the 50% of the size was already booked in and the growth represents that. The deposit volumes year-on-year growth 19%, in terms of the quarter, slightly down, which is a year-end situation, and it totals to PLN 39.6 billion. The business volume dynamics, FX was down 16%. The transaction volumes it was linked to the strengthening of Polish złoty versus USD. However, the value of transactions conducted through our brokerage department was up 65%. Pretty strong transactional activity.
Maybe not so visible in the number of cross-border money transfers, which were slightly down 2% YoY. If you look at the value of trade finance assets, it was 29% up. The relationship banking area, the new financing granted and current financing volume was up 15% YoY. Page five is just a brief summary highlighting the key transactions that were executed recently. You see, you know, behind the different different types of transactions from syndicated facilities through accelerated book building. We are, you know, our clients are executing the transactions. We are helping them grow and expand their business activities. Page six, coming back to the consumer banking business volumes. The loan book was slightly up year-over-year and flattish quarter-over-quarter.
The deposits at similar levels both year-over-year, slight growth 2% and 0% dynamics quarter-over-quarter. Kind of similar trends and effects to the institutional banking, slightly lower volumes in Q4, 3% down year-over-year in terms of the volumes. However, number of transactions was up by 6% in terms of the CitiFX Pulse transactions, which is our online FX exchange tool. The important thing is that the client portfolio is growing. When you look at the private banking dynamics, number of Citigold private clients was up 13% YoY. It's not only the client portfolio, what follows is the AUMs and they were up last quarter.
In fact, we have reached the record level of the assets under management portfolio. Page 7 is the social page. We are active in the social activities through our Kronenberg Foundation. You see that, you know, there was number of projects that were executed and also, you know, significant number of employees that were involved and were behind the help that we have been providing to the community. The projects range from support for refugees from Ukraine to improving access to sports for children with disabilities, food security, different types of projects that are, you know, forming part of our social agenda and our contribution to the environment we operate in. Moving on to page number 9.
Before I jump into the quarterly numbers, just maybe a step back and brief summary of 2025. Net income of PLN 1.666 billion. It's a strong result achieved in declining rates environment. As you know, the rates were down by 175 basis points last year. It's impacted to the net interest income, which I'll discuss in a second. However, if you look at the interest revenue on the annual view, it was up 12%, which is a reflection of our loan portfolio growth. I've mentioned the dividends. The dividend payout totals to PLN 1.8 billion, which was a record payout for the bank and translated into the dividend yield of 13%. It's among our priorities to create value for shareholders.
The capital position is and remains strong. I would only comment it will slightly improve post the merger, having in mind the structure of the transaction. The presentation that I'm gonna share with you, the following pages are in terms of the presentation format splitting the business into continued operations, which is the institutional banking, and discontinued operations, which is the consumer banking. Coming to total revenue in the institutional banking, when you look at the Q4 at PLN 732 million, it's comparable to last quarter despite the rate cuts. The lending book, as you heard, is growing. The trade finance book is also 24% up quarter-on-quarter.
When you look at the consumer banking revenue, it's down by 7% QoQ, 13% YoY. It's primarily impacted by the rates impact. I think it's important to note that in general, clients revenue is increasing its share in the total revenue of the bank, and it's ensuring the more recurring character of the revenue mix. Moving on to page number 10, which is the net interest income page. PLN 511 million of net interest income in the institutional side last quarter. Flattish versus Q3 and down 7%, which is a function of rates, and NII on the consumer banking side at PLN 202 million.
It's above the PLN 200 million mark, however, it's 7% down quarter-over-quarter, which again is primarily the impact of rates. I would draw your attention to the bottom right-hand side of the slide, where we are showing the client view and the dynamics of the interest income from clients. The quarterly view is +4%, Q4 over Q4, and it's +12% when you look at full 2025 versus full 2024. This is a reflection of our efforts in terms of building the client revenue and client net interest income. When you look at page 11, which is the net fee and commission income slide, the full-year fees are up by 8% YoY.
What's behind the growth is the custody business, it's the brokerage business, and then that's the trade finance business as well. The PLN 108 million recorded in institutional banking in the fourth quarter is 2% up quarter-over-quarter, and behind the numbers is primarily brokerage and lending products. The fees line in the consumer banking side was at PLN 40 million, down quarter-over-quarter by 13% and 3% down year-over-year. Kind of seasonal effects here. What's positive here is the investment product sales and growing client portfolio, which are positively contributing here. The treasury results, page 12. This is where we booked PLN 680 million in the revenue line, and you see the composition of it.
The most impacted line was the net interest income line, and also a function of portfolio size which reduced in Q4. The trends in the income on FX, which is the bottom left side of the slide, is the client activity in institutional banking and the client activity usually in the fourth quarter is seasonally strong and it was the revenue from FX was up 5%. You see the mix of the balance sheet with slightly reduced share of debt securities portfolio as a result of client receivables growth. This is the trend that we are showing consistently and which you can observe in our quarterly disclosures. Moving on to cost of risk. Cost of risk. No, sorry, not cost of risk.
Before we jump to cost of risk, expenses first. Expenses. We have been and we are characterized by strong cost discipline. We, in fact, are the only bank in the, among peers with decreasing expense base. When you look at the institutional banking, the cost base was down 3% QoQ and 5% YoY. When you look at the cost-to-income level at 23%, it's in line with our strategic commitments and the KPI that our cost-to-income will be below 30% in the long term. Going through more detailed analysis of expenses, which is on the right-hand side, you see that the two line items that are growing are the staff expenses and the regulatory expenses. The consumer banking, a few words here.
The operating expenses amounted to PLN 204 million, significantly down 40% QoQ. Lower costs are primarily linked to lower costs that we incurred which are linked to the project of consumer bank exit. Now page fourteen, which is the cost of risk. Very healthy situation in our lending book. The Q4 in institutional banking, minus PLN 3 million, it's a result of the move between stages. Some of the outstanding amounts from Stage 2 to Stage 1. It's linked with the improving financial standing of our clients. The consumer banking cost of risk amounted to PLN 5 million.
Maybe briefly, if you look at our NPL levels, they are at 2.5%, whereas in the banking sector the NPL ratio is at 6.6%, so significantly better vis-a-vis the market's situation here. I think in summary, that would be it from my side in terms of going through the presentation. We are happy to take questions, so I'm opening the floor for the Q&A session. Okay. If there are no questions, our contact details remain the same, so you feel free to reach out to us either by phone or by email. You've got all the contact details on the webpage as well under the Investor Relations tab. Thank you very much for today.
It was pleasure to share the Q4 earnings with you and looking forward to hearing from you soon.
Thank you, Macie. See you. Bye bye.
Bye bye.