GROWTH IN LOANS AND REVENUES
Consolidated net profit of Bank Pekao S.A. for the first half of 2016 amounted to PLN 1,264 m +1.6% yoy (PLN 1 465m excluding the banking tax, +17.8% yoy). In 2Q 2016 Pekao reported consolidated net profit of PLN 691 m +20.4% qoq. ROE at the level of 10.7% delivered with strong capital base with Core Tier I at 18,1%. Key retail loans of the bank increased by +11 % yoy and retail deposits by +16.1% yoy.
Net profit amounted to PLN 1,264m (PLN 1 465m excluding the banking tax, +17.8% yoy). First half operating profit at PLN 2,206mn +12.0% yoy, supported by strong second quarter.
Operating income reported for the first half amounted to PLN 3,830m, +6.9% yoy, supported by strong Q2 results +10.8%. Growth in operating income was driven by improvement in core operating income, +2.2% y/y and impact of VISA transaction.
In the first half of 2016 net interest income increased to PLN 2,152m, +4.5% yoy, thanks to an increase in volumes. The Group’s net interest margin increase to 2.8% in Q2, +5bps qoq thanks to asset and liability mix improvement.
Banking core net fees and commissions increased by +1.9% yoy to PLN 800m, supported by strong, double-digit quarterly performance, +10.3% qoq.
The bank achieved double-digit growth in key retail loans, +11% yoy to PLN 48,972m, while key corporate loans grew by +5.8% yoy to PLN 44,296m. In the first half of the year, new retail loans increased to 6.5bn, driven by strong performance of consumer loans.
Pekao achieved double-digit growth in retail deposits, up by +16.1% yoy to 68,174 m, supported by strong quarterly performance (+3.5% qoq), while corporate deposits amounted to PLN 60,101m.
Costs remained under strict control (+0.7% yoy) and amounted to PLN 1,624m. Bank reported further improved of C/I ratio which decreased to 42.4%.
Assets quality was maintained at a consistently sound level, with the stable cost of risk at 47bps and the NPL ratio at 6.4%, while the provision coverage ratio increased to 74.2%.
“ We have got solid first half of the year. We believe, that we will continue grow in next six month and achieve our ambitions.” - said Luigi Lovaglio, CEO and President of the Management Board of Bank Pekao S.A.
Bank Pekao SA operates for 85 years and is one of the largest financial institutions in Central and Eastern Europe. In terms of capital strength measured as capital adequacy ratio, Bank Pekao is a leader among large banks operating in Poland and one of the safest banks at the Pan-European level (Pekao Core Tier 1 ratio at the end of the first half of 2016 is at the level of 18.1%). Rank no. 1 of Bank Pekao in Poland and among the biggest EU banks was confirmed by stress tests and AQR tests.
Bank Pekao was awarded with many prestigious and popular prizes and titles, both in the national, as well as international level. In 2014 Pekao mobile banking application won The Best Mobile Banking award of Money.pl. The Bank was also rewarded Top Employers Europe 2014 for the fifth consecutive time. In the corporate field in 2013 Pekao was awarded the Best Bank in Poland in terms of Transactional Banking Services by Euromoney Magazine for the third consecutive time. Pekao was awarded „Bank of the Year in CEE 2013” by Europa Property. Pekao gained Warsaw Stock Exchange award for the leaders of Polish capital market in 2013 – Award for the biggest value of issues of non-Treasury debt instruments introduced to Catalyst in 2013. Pekao gained prestigious awards for the Best Bank in Poland by “Global Finance” and “The Banker” magazines for three times. Corporate division was awarded also, among others, “The Golden Banker Award” for the first implementation of fingerprint identification of clients in Europe.
Bank Pekao SA is a part of UniCredit Group, one of the leading international financial institutions.