Good morning, ladies and gentlemen. Welcome to our Results Conference. We will be talking about the results for second quarter of 2024. The agenda of the conference is, as usual, we will start with key highlights, which I will be presenting. Then we will go to talk about macroeconomic environment, presented by Michał Dybuła, the Chief Economist of the bank. Financial results, getting into some more details, that will be discussed by Mr. Piotr Konieczny, our CFO. I will mention summary and outlook, but earlier we will also talk about credit risk, and that will be presented by Chief Risk Officer, Mr. Wojciech Kembłowski. So let us now go to our presentation. The atmosphere is that of holidays. We only have a few people physically here with us, but I hope that there are more listening to us online.
The key highlights. In the second quarter, the bank has managed to get the PLN 623 million of profit, more than the previous quarter and more than the year before. We have been able to achieve that level of profit in spite of the fact that we had to account for the cost Credit Holidays in the amount of PLN 203 million. Although, in the second quarter, the impact of the provisions on legal risk was relatively low. The effect of this level of profit is that our rate of return increased at reported value, that is including the impact Credit Holidays. it's 18.3%. If it weren't for Credit Holidays, it will be even higher, which we will show further in the presentation.
The income of the bank, as reported because Credit Holidays, that is a bit lower. The income result is mainly thanks to our net interest income. If we eliminated or excluded the income Credit Holidays, our net interest margin would be improved, which is positive. Which is something that is not so positive is the level of dynamic of our credit portfolio. We have noticed slight increase in corporate banking and slight decline in retail banking. I understand that's something that would be interesting for you. For quite a long while, we were not very active on the market mortgage loans. we have taken a strategic decision to return to that market, and that return was effected in the middle of the second quarter.
So what we are counting here is just half of the quarter, so this dynamic is not as high as we would like it to be. But the situation in terms of credit volume is the result, practically, to a great extent, of this situation that our provision of mortgage loans was relatively at a low level compared to the market. So the costs as stabilized in the second quarter. Again, we pursue a very rational and cautious cost policy. Two more issues. We continue to have a very good result in terms of investment products, and this is the second quarter of increase in sustainable financing, which is now approaching PLN 10 billion. If we look at the reality through our strategy, Go Beyond strategy, which will be in force until the end of next year.
Without going into details, I have already mentioned the volume of sustainable financing, practically PLN 10 billion, and I'm sure we will be able to exceed that amount, or maybe we have already exceeded it. We are being awarded as a bank for which sustainable financing standards are of key importance, and this is going to continue. As regards the SME segment, let me mention two products or solutions for clients. First, the account with a card for Wpływowych Influentials. It is a very innovative idea, which we offer. The people opening such account, we offer a special modern tool to measure the quality of water in Poland. For a lot of people, this is really important. A lot of people who use this product are anglers who really for whom it's really important.
The other product is the Visa card for tennis fans. We know how tennis, how popular tennis has become, thanks to Iga Świątek, Polish female tennis players, but also Hubert Hurkacz. They, they are really successful. There are more and more fans of this discipline, so this is the offer for an offer for such people. As regards the stronger pillar. We continue to develop our chatbot, Genius, based on an AI technology, which makes it much easier to work for our colleagues. Behavioral protection, something we discussed last quarter, is now also available for all our customers.
The together pillar of our strategy, something that makes us really happy and has been making us happy, is the furthering improvement of the eNPS index, measuring the level of satisfaction of our employees, satisfaction of the work here at the bank, which means they want to work here, they're very enthusiastic about working here, and they want to grow with us and achieve better results. Now, in a more visual way, you can see, we can see the growth in transactionality of our customers. More and more customers use our GOmobile mobile banking solutions. More and more customers use BLIK to effect their transactions, and the dynamic of BLIK is really very, very optimistic, very good. But transactionality is improving in a number of segments.
Another visualization, what we can see here is, first of all, huge growth of production of mortgage loans. but we must remember, as I have mentioned, we were starting from a very low base, and this is the effect of our work only during half of the second quarter. I'm sure in quarter three, we will be able to see the results for the entire quarter, and they will definitely be more attractive. Huge growth of mobile payments. This number has grown 25% year-on-year and 7% quarter-on-quarter. Improvement in getting new personal accounts. Again, I hope it's the beginning of a new trend, very important for us as regards corporate banking. Increase of payments volume is something that attracts attention, something that we've mentioned before.
We really want our customers, customers that want really to do banking with us, and this attitude has shown effects. Where we really need to improve the effects is the acquisition of customers and more lending activity to take the opportunity of the growing economy, and we hope this trend will remain in place for the next quarters. We will hear Michał Dybuła soon, talking about that. Now, volumes. As I mentioned, a slight decline in the credit volume in retail banking, exclusively as a result of the low level mortgage loans production.
As regards deposits, here, we manage our deposit base in a very cautious and, and very, diligent way, and we do not enter the race on share market because we do not want to pay more for, for the liquidity we have. And the need to—I, I have already mentioned the need to improve the acquisition of customers, but what is positive is the increase in the number of, customers in the segments of micro SMEs, corporate customers, but also wealth management and affluent customers. When looking at the, results, we can see here this, disparity between the reported results that include the cost of PLN 203 million, the cost Credit Holidays. here, the decline in income, both quarter-on-quarter and year-on-year, is the result of the cost of Credit Holidays.
If we neutralized the results Credit Holidays, we would have almost 5% growth year-on-year. When we look at expenses, again, the quarter-on-quarter decline in costs is the result of BFG counting, then we would have 0.2% cost increase, that means stabilization of costs, and we are planning to continue working on that. The legal risk, PLN 190 million of costs in the second quarter. I haven't mentioned credit risk because we will be speaking about that, talking about that in detail. But generally, the second quarter shows the positive impact of credit risk in level million, very positive impact of provisions. And the net result, as you can see, significantly better than in previous quarter. Again, Credit Holidays impact, it would be also very much better year-on-year. Key financial ratios.
I have mentioned the interest margin, the net interest margin. Again, if it weren't for Credit Holidays, it would be close to 3.6%. Cost to income ratio, practically without change. Cost of risk, very low level. 20 basis points after six months of the year is something a parameter that is really difficult to find a better result on the market. We are an attractive bank, and that also shows that the quality of our portfolio is very, very high. And a return on equity, net reported value eighteen point three, much better than last year. Without the cost Credit Holidays, it would exceed 20%, close to 21%. So I think that will be all from me right now, and let me now hand over to Michał.
Good morning, Przemysław. Thank you. Good morning, ladies and gentlemen. Tomorrow, we will know the preliminary results of national accounts for the second quarter. I do believe that available data from construction or commerce would indicate that the economic growth has accelerated to 2.5%-3% from 2% in the first quarter. So we can say, I think, that we are witnessing an ongoing rebound in the economy. The rebound may have been more dynamic if it were not for weakness of the industry, especially those industries that are heavily export-dependent and depend on demand generated by our chief trade partners. Having said that, given the available hard data and the tentative indicators, we can be slightly more optimistic that in the following months, these industries will no longer experience a decrease in production and performance.
Nonetheless, for the next few months, we will be standing on this just one leg, specifically the households' consumption spending. Here, a fairly fast growth of real disposable income does translate into more purchases of goods, but also more purchases of services, which is most difficult to observe directly. It is fairly important that although inflation is higher after July and the unfreezing of energy prices, is still lower than the average market expectations. So on the demand side, I do believe the price pressure will not be dramatic, and we do not really observe much pressure to increase prices. So it's good news for consumption. I believe it's also positive if we think about the perspectives of monetary policy in the coming months and quarters.
Inflation that is lower than expected, the gradual economic rebound, and last but not least, relaxation of monetary policy, gradual relaxation of monetary policy by the European Central Bank and soon the Fed. It would seem that the long forward guidance, as presented by President of the National Bank of Poland in July, will probably not come to pass, and other members of the Monetary Policy Council indicate that we should expect a decrease in interest rates next year. Looking at the forward markets valuation, we can assume that this monetary policy relaxation in Poland will be significant. I mean, the forward markets value the reference rate at somewhere 4.4% at the end of next year. Lower interest rates, rates also in real terms, will allow to mitigate the restrictive financing conditions that our economy is struggling with, especially the industry.
It should also lead to a more robust rebound in terms of credit activity, especially the corporate sector, and especially if we are talking about working capital loans. That's probably, however, the scenario for the end of the year, next year, not necessarily for the next two or three months. In concluding the macroeconomic part, I would like to thank you and turn over to President Konieczny.
Thank you very much. Good morning, ladies and gentlemen. Let me start with the mid-year results. It was a very good half year for our bank. Our net profit was on the level of PLN 1.2 billion. It was developed with the very robust growth of core activity performance, mostly interest, which was already mentioned before.
And given the noticeable, because if we look at quarterly dynamic, quarter-on-quarter dynamic between the second and the first quarter, in terms of stabilization of cost base, despite the inflation and wage pressure being visible, we still have 14% growth year-on-year. During the first half of the year, we also looked very closely at our franc, Swiss franc loans portfolio. As you remember, we had a rather significant write-off for this portfolio in December. We also said that we would be monitoring the situation of this portfolio. Now, I don't want to say that everything, that the bad thing is over, and that the Swiss franc crisis or Swiss franc saga has come to an end. Nonetheless, we are updating our write-off based on observed data.
Therefore, the situation of this portfolio has a limited impact on our income statement, on a profit and a loss account, only PLN 211 million. Costs of risk were already mentioned, negligible from the perspective of the bank in the first six months. As we look at the bank's balance sheet, the total assets have increased 7% year-on-year, mostly on the liability side, so client deposit. Combined with the interest rate environment, it had a significant impact on the dynamics, especially in the area of interest income. As for basic KPIs of the bank, all the regulatory KPIs are met with a buffer. As for efficiency, return on equity on a very decent level. The cost income year-on-year has slightly deteriorated.
This is related to the fact that as a result of interest rates stabilization, the growth dynamics on the revenue side was lower. We had some cost inertia that caught up with us, hence, the cost-income ratio has slightly deteriorated. If we take a closer look at the client portfolio, year-on-year, as was already mentioned, we have a slight decrease. However, there is different dynamics in different sub-segments. A good thing is continued personal finance and consumption financing growth. Mortgages were already discussed, so this is a dynamic that we expected, and as Mr. President said, we expect that blowing up the mortgage portfolio should result in at least stabilizing the Mortgage Loan portfolio, preferably make it grow. In corporate part, we are also maintaining our position.
So given improving environment and improved sentiments that my colleague talked about, this gives the bank a very good position for to tackle future periods. Now, if we move on to the Swiss franc portfolio, Swiss franc loans portfolio in the second quarter, compared to first, we have made some adjustments of parameters of our model. It is worth emphasizing here that our model, in terms of infrastructure elements, such as including all the cost-generating elements, was built very well. So as a result, there was no need for any single major revision of the model, which was known to have happened in the market. Therefore, the dynamics of new write-offs was directly influenced by the dynamics of new petitions coming through to the bank, and not model reimagining.
In the second quarter, the banks have received 712 new petitions as compared to 839 in the previous quarter. This does not mean the situation is over. Nonetheless, the bare fact is that there are fewer petitions in the second quarter than in the first. We are also continuing our settlements with the borrowers. At the end of June, we had 180 thousand, sorry, 5,701 settlement proposals, of which 1,400 were already accepted. We have the income on the level of PLN 300 billion, which gives us the coverage of over 70% of total assets. We have already mentioned the deposits.
One thing that makes us happy is that we see growth in all the client segments that we work with. We are also glad that the increase in deposit base is not happening at the expense of deteriorated interest margin. So this is a very good growth in the deposit base at reasonable pricing. We are particularly happy to see the growth in the segment of retail clients, because from the perspective of managing the bank's liquidity, these are the most sensitive and most valuable funds. One important element that was mentioned here, and that helps us to continue to build our deposit base, while at the same time prudently managing its price, is our ability to offer investment funds.
Here we have yet another quarter of good dynamics of sale of these funds, two-digit growth, both quarter-on-quarter and year-on-year. We also see that the clients continue to be interested. Like I already said, this is an important element of building a savings proposal for our clients who bank with us. I have already mentioned the interest performance. Let me just remind you, because it's important to keep it at the back of our minds, PLN 203 million Credit Holidays that had impact on this dynamic in the second quarter. Another important number that we look at is the net interest margin. We see improvement in this margin when we factor out Credit Holidays impact. Well, I believe I have already commented on everything. What are the remaining areas? 17%.
17% of our income is income from commissions, and this dynamics has normalized as well. The first quarter, as you remember, is historically the quarter for settlements with Mastercard and other payment institutions. Hence, usually in the first quarter, we always have an increased level of this income. However, we can also see the impact of lower-than-expected dynamics of loan portfolios, which results in lower-than-expected dynamics of portfolio of commissions stemming from credits. It is visible in the second quarter results. And as I said, to summarize in one word, this part of the bank's income, we could say that the level of our revenue from these sources has normalized. In our trading income, 12% of our income, net banking income.
An important element here is the improvement quarter-over-quarter of the client customers margin, and that led to a positive dynamic quarter-over-quarter. Year-on-year, we observe a decline. But when we look at the environment, we're dealing with a situation where we have the reduced volatility on the market, very strong position of the Polish złoty, and thus the willingness of customers to enter into hedging transactions is lower, and therefore this dynamic year-on-year is lower. The result in second quarter was also impacted by the valuation of infrastructure companies with which the bank cooperates, and that also has an impact. But the most important message here is the improvement in the margin quarter-over-quarter in net trading. Costs and operating expected operating expenses, depreciation, and amortization.
Quarter-on-quarter, we observe stabilization, flattening of the growth. Year-on-year, 14% growth, and this growth is visible in all cost layers, if you like. We observe the increase in employment costs, increase in administrative costs-
... The bank is also continuing an investment activity that has been in place for a number of quarters. With the completion of the individual components of digital transformation, that affects depreciation and amortization, and we can see that reflected in operating expenses. Employment in the group year-on-year decreased about 4%, and we end with this half of this year with 8,000 employees. As I said, the dynamic of income and costs year-on-year led to the decrease or increase in the cost-to-income ratio of about 5%. Now, I hand over to Wojciech.
If we look at risk, cost of risk, they are limited, and they result from two aspects. One-off events, particularly releasing the provisions that are the result of updating of projections, PLN 42 million.
Another one-off event are provisions created for legal risks related to Swiss franc loans, because the balance sheet gross value is reduced, and we managed to release PLN 9 million of this provision. The sale of a portfolio is a regular part of activity. We normally do it in the second quarter of the year and the fourth quarter of the year, and this is also be like that in 2024. So this is one aspect. On the other hand, we must emphasize very limited impact of new impaired loans in the second quarter of the year, and therefore, the Stage 3 has not increased. And that also means low cost of risk in the second quarter, which is something that can be treated as normalized costs.
That also translates to the quality of the loan portfolio, PLN 2.6 billion in the balance sheet of impaired loans. This is a stable value. In every segment, we are very stable. In all stages, it's about 3%, and this is something that we would like to maintain. If we look in the hindsight, we are now in August, it seems that there is no risk in terms of the retail loans, personal finance, or other exposures related to SMEs. So what we really have to look closely at is the corporate exposure, just to make sure that the quality of our loan portfolio remains very good and the cost of risk is limited. As regards the share of each stage of loans, the level is very stable. In Stage 2, it's slightly decreasing.
Stage 1, generally growing, which is something that is positive and desirable. The best situation is when the performing loans, and we have to work on them to remain performing, and we want this stage to grow, whereas Stage 3, which are considered impaired loans, this is going down, and this is the desirable part. So we have to work more on the first part. For mortgage loans, to make sure that this growth in this portfolio is also visible. Capital adequacy. If we look at capital adequacy, very good summary would be that the bank has improved in the first quarter, its capital position.
In the first quarter, and we are dealing here with including 50% of the net profit from the next year in the reserve capital, and the Tier 1 has grown 13.24. TCR has also grown 11.43. In general, the bank is very well capitalized. We used the first six months in order to strengthen our capital base even further, and the balance sheet of the bank is prepared to absorb the expected loan dynamic in the future. So this is the last slide that we will be talking about, and I will just use it very briefly. What are our prospects? Macroeconomically, we assume that it will be a growth year, and then the subsequent year will be even more so. So the macroeconomic environment should be favorable....
favorable to the development of the banking business, and if we combine this with huge needs of the Polish economy, energy transformation, defense issues, the development of technological infrastructure, and a number of other needs, I believe it may be very good times. Very good times may be coming for the sector. I assume that the current government will not repeat, not go back, the solutions such as Credit Holidays, which already has been signaled by the Minister of Finance, who has said that the ministry is not planning to use this instrument anymore. I hope so, and it's really time for us to return to normality. There are risks in the sector, mainly of legal character. I'm not worried about our portfolio because we've built it in a very rational, and cautious manner.
But I am worried about legal risks, related to very aggressive attitude of law firms with a lot of experience, gained during the Swiss franc crisis, and really looking out for opportunities to fight. The response of the public side, very clear as regards the integrity of WIBOR and the common sense in the administration of justice, will lead to a situation that those attempts to challenge the WIBOR will not lead to a very dangerous line of court rulings in this respect. Our bank, we want to grow. We want to grow in terms of the number of valuable customers, and we undertake a number of initiatives, for to this purpose.
We are optimistic that in spite of our conservative leaning, we will grow in loan activity, both in the segment of retail customers, mortgage loans is our main home, but also institutional customers. We are working very strongly on optimizing our internal processes, introducing, implementing solutions that will allow us to effectively manage the cost side, and these growths are important for us, so we will try to manage all those costs in such a way that this efficiency continues to grow. We will continue to focus on sustainable development. We are the market leader in this respect, and we are not planning to give the first place to anyone.
New investment in energy transformation, new investments in renewable energy, I do hope we will be very much visible on the market, but we will also support smaller customers in the implementing the high level of ESG standards. So that will be all in terms of the summary, and now we can go to questions and answers. Do we have any questions from people present here in the room?
Thank you. Jacek Ramotowski. I wanted to ask about the following thing: You have renewed the production mortgage loans. what is the interest rate? Is it a fixed interest rate, or is it WIBOR linked?
In connection with what's happening on the market, the question has been sent to the European Court of Justice, aren't you worried that the developments in this respect may not be very favorable for the bank? And the second question is about cost of risk. Two relatively big banks have shown growing costs of risk in connection with the situation, which is, in fact, the effect of the last year's stagnation. Do you see such prospects as well, in front of you? 'Cause I understand that your portfolio is cautiously built, but you are functioning in this economic environment, so do you have any fears related to that?
So let me start with the first question. In fact, these are two questions in one. Whereas the other question, I will leave to Mr.
Kembłowski to answer. So our new production mortgage loans is 100% based on the fixed interest rate, fixed term interest rate. You mentioned the WIBOR risk. Well, just maybe going forward, yes, indeed, this risk is there, and we cannot predict what the response of the ECJ will be, but I am optimistic because of the very coherent voice of the key institutions responsible for the security of the financial sectors, who have many times unequivocally expressed their opinion on integration, correctness, and appropriateness of WIBOR compliant with BMR. And I do hope that this voice will reach the judges of the European Court of Justice, and that common sense and listening to experts will prevail and will mean that this judgment will be-
... the right one. So that's my response to this first question. Now, as regards the cost of risk, if we look at the segments: Personal Finance, Retail Customers, SMEs, or Corporate, I think that we don't have such threats, such risks in our portfolio. But we should also monitor very closely individual exposures, which are now classified by the bank as Stage 2, and that's what I mentioned before. They might potentially, they are not yet, but might potentially become the reason why some additional costs of risk may appear. Do we have any questions from the room?
Yes.
Economista.pl. I have a question related to the table that we have just seen, the threats and challenges, for the banking sector. We are interested in those new technologies in the banking sector. How do you see the banking market or the market, the market of banking services in 20 years? Are you preparing for this future?
Well, 20 years is an extremely long perspective, and we know how the world changes quickly. So designing how it's... I mean, predicting how, what it's going to look like in those 20 years is very difficult. Of course, we are thinking ahead. We are trying to figure out what the market is going to be in a midterm horizon, three, five, 10 years, and we are preparing for that. Of course, there is no doubt that technology is going to increasingly play a role, that artificial intelligence will support many banking processes, including the internal ones, which is already happening today, and those customer-facing ultimately or even key decision processes, such as, for example, credit decisions, especially for smaller exposures. I am frequently asked about the future of bank branches, and for years, my views on that have not changed.
They will not disappear entirely, even in a very long-term perspective, because as places of interaction with a living person, they will be useful. They will be fewer, they will be more modern, similar to how most of our transformed branches look. They will be places to meet experts, have a cup of good coffee, rather than do any transactions, because these transactions are practically overwhelmingly done over mobile devices. I hope that in a longer term perspective, the cash will be entirely marginalized because cash is both cost and a potential tool for informal economy, both gray and the darker corners of it. So it will be easier for all of us without cash. So this is all I can say. Thank you.
Okay, I understand we have no more questions in the room. Let us move to questions online.
Mateusz Rabiega from Reuters: Are you expecting that the low impact of provisions on legal risk of Swiss francs will persist in the second year, and how much it could be?
Well, let me try and answer that. We are consistently, quarter after quarter, building our provisions for that risk. Those provisions stem from the model. The model takes into account a number of parameters, including dynamics of petitions, resolutions, the scale of settlements with clients. I do not doubt, I mean, I know this is not the end of it, but what the provisions are going to be in the second half of this year, well, it remains to be seen. The next question is mortgage loans in Polish złotys. What is the interest in your new offering mortgage loans? what is the value of sales of new loans in the second quarter?
Question from Puls Biznesu: Will the bank returning to granting loans to new client, will the increase be visible this year? Will you be granting loans from Kredyt na Start program that is to be launched next year? Well, in order of questions, as I said before, we have started mortgage loans in the second half of the second quarter. The production was PLN 265 million, and I do not doubt that the level will be higher in the second quarter. There is a lot of interest from the clients. We also remain selective, not as selective as we used to be, but still, and we will definitely continue activity in this area. You have asked about Kredyt na Start. Well, we have not decided as yet. We have to look into the program more closely. In general, however-...
or at least, this is my personal view that I have not consulted with my colleagues on the board. But personally, I am not really a fan of such programs, you know, like the previous one, you know, from the previous government. We did not participate in that one. So we have to look really closely into the structure of the new program. What would be the operational involvement, and what kind of volume we could achieve should we participate? So this is still ahead of us. I think I have missed something from the middle. Will the effect of new sales be visible in this year? Well, we certainly hope so, at least in terms of stabilizing our Mortgage Loan volumes.
In continuing, with the thread mortgage loans, kamil Stolarski, Santander: Was your decision about limiting sales of mortgages reasonable, from the perspective of time, in hindsight? Well, I am convinced that in that time, based on the knowledge we had and the risks we are facing, I do believe the decision was reasonable. Sebastian Karbarczyk from PAP: The cost Credit Holidays were assumed at the level of 90% participation level. What is the client participation in the program now? Well, I do have certain doubts as to how detailed information we should provide about this participation. All I can say is that it is lower than in case of the first program and lower than our conservative assumption of 90%. Nonetheless, still, a lot of time remains when the clients may use this vacation.
So we will summarize precisely where we are at a later time this year. Nonetheless, regardless of how bad in its very nature this program is, the extension has many more rational parameters than the first launch. That was a complete aberration. So the clients are far less willing and far less likely to meet the criteria to use this program. Jaromir Szortyka, PKO BP Securities: What was the long-term financing indicator at the end of second quarter? Was the requirement of 40% at the end of 2026, will it have an impact on sales of mortgages or price of mortgages in your bank? The WFD indicator is on a very safe level, safe for the bank at this time, and in the immediate future, we do not see a risk of infringing it in any way or being forced to issue any long-term instruments.
Of course, should such a situation occur, the higher cost of financing will result in higher prices of the loan, of the mortgage products. I do believe it would be a very natural reaction of the market to such a circumstance. So the very construction of WFD in a time perspective, generates a risk that there would be either mortgage loans available or they would be more expensive. In continuing the questions from PKO BP Securities, what is the share mortgage loans, for periodic, fixed interest rate, and what is the share of fixed interest rates in your assets, natural security plus hedging? Well, in a loan portfolio, it's approximately 20% in a mortgage, portfolio. As for the structure of assets, I do believe a good measure would be almost 40% of assets that are, fixed interest rate bearing.
Does the bank fulfill the requirement of Saturn II, and if not, how far are you from fulfilling them? The bank fulfills this requirement very comfortably. At the end of June was 4.1 vs the regulatory level of 5% of Tier 1 Capital. So in short, yes, we fulfill it. Another question from Mr. Jaromir Szortyka: Excluding the effect of DTA tax on CHF provisions, the income tax in second quarter seems to be lower than normal. Why? Well, outside of the DTA situation, there were no other events that could be characterized as abnormal. As we analyze this value, please remember that we are dealing with a situation when the performance was increasing in fixed values or permanent values that are structurally tax ineffective, such as, I don't know, banking tax. So it is simply on a better level than usual.
The proportions have improved between the increasing results and the structural, fixed structural elements. That's what we observed in the first six months of this year. Continuing, what effective interest rate should be expected in 2024? Should we expect the continuation of the positive effects visible in second quarter? Well, this is a veiled question about the value of write-offs for the Swiss franc portfolio, isn't it? Well, since we don't know what was the situation, what is the situation of the Swiss franc portfolio in the second half of this year, and structurally, this element has the greatest impact on the effective tax rate. The only thing I can propose that you could use to estimate these values, frankly, I don't think we can maintain as low a level of effective interest rate as we had in the first six months.
Because in the coming quarters, as we analyze our Swiss franc portfolio, we are going to continue making write-offs, therefore, the effective tax rate will be changing. So it will probably be somewhat higher than in the first six months. Kamil Stolarski, Santander: What are the ambitions of BNP as to the dynamics of loan growth in the coming quarters? Well, of course, we do have appetite for growth, as I have already mentioned, and we have all the necessary elements: liquidity, equity. We have already demonstrated it earlier. We want to grow as the market grows, especially in the strategically important client segments, without losing sight of our conservative and balanced character and culture. IPOPEMA: What is the sensitivity of interest performance to a decrease of interest rates by 100 basis points?
Well, for Polish złoty, it's PLN 181 million per hundred basis points. In continuing the questions from IPOPEMA: What were the sources of the positive macro result in loan provisions, and was it visible only in the corporate segment? Can you share the outlook of the cost of risk in 2024? Well, as for the impact on releasing provisions due to macroeconomic scenarios, that impact resulted not only from the corporate portfolio, but also personal finance and retail. The main factors for corporate portfolio were the changed level of exports and the level of GDP in Eurozone. As for personal finance, the main reasons were the impact of the level of unemployment, the change in real wages, and reference interest rates of the National Bank of Poland.
As for the cost of risk, we generally do not quote them in basis points. We do not quote the levels of risk that we plan to have by the end of 2024, not in, like I said, not in basis points. But as I said before, as for part of the retail portfolio and companies, it should behave in a very stable manner until the end of the year. Thank you. Kamil Stolarski, Santander: Did you carry out the review of wages and how high the indexation was? So without giving you the exact amount or percentage of indexation, I can say that it has been well received by our employees, and yes, it did happen in the first quarter, and therefore, a financial effect is already visible in the second quarter, and that's what we do every year.
Shall we expect that 50% of net profit of 2024 will be assigned for dividend? The bank wants to be a dividend-paying bank, which is obvious, but the amount of dividend that we will pay, I hope we will pay, will depend on both the policy of the Financial Supervision Commission and the capital situation of the bank. And the last question, mBank brokerage house: has the sale of AXA Investment to BNP will have impact on BNP operations in Poland? As far as I know, AXA does not have such operations in Poland, so I don't think that this impact may be really direct.
But from the perspective of the entire group to which BNP Paribas Polska belongs, it is an increase of the scale of operations in the area of asset management, which might result in new products, new solutions, also on our market. Jaromir Szortyka , just last question: Other banks mention the decrease in the quality of loans in corporate sectors. Do you also see such signs? So we now going back to what I've already talked about. Not now. We do have individual loans classified, as it is the case with our banks, classified as Stage 2 loans, and they are right now properly classified in this stage, and we will see how the situation develops in the third and fourth quarter of the year. Thank you. Okay, it seems that we've exhausted the list of questions. Thank you very much.
Thank you very much on behalf of the entire team for your presence, for your attention, for the questions, and we do invite you to come again in the next quarter. We've managed to close our meeting in one hour. Thank you very much.