Press release

02.08.2017

FINANCIAL RESULTS AFTER FIRST HALF OF 2017

Consolidated net profit of Bank Pekao S.A. for the first half of 2016 amounted to PLN 885 m +9.5% yoy on comparable basis. ROE increased by 1.2 pp, at the level of 8.7% delivered with strong capital base with Core Tier I at 18,0%. Bank continued a double digit grow of key retail loans, up by +12.5% yoy and solid grow of retail savings (+ 7.5% yoy). In first half of 2017 the value of new retail loans reached a record level of PLN 8.9 bln (+38.0% yoy).

After first half of the year Pekao’s consolidated net profit reached PLN 885m, which means that on comparable basis net profit was +9.5%[1] higher yoy.

First half operating profit was at the level of PLN 1, 917m (+6.5% yoy) in comparable terms.

Core operating income reported for the first half of 2017 amounted to PLN 3,407m, (+2.2% yoy). Total operating income reached PLN 3,511m (+2.7% yoy) on comparable terms.

In the first half of 2017 net interest income increased to PLN 2,251m, (+4.6% yoy), thanks to an increase in volumes. The Group’s net interest margin after six months was stable on the level of 2.77%, thanks to +2bps qoq.

After six months fees and commission amounted to PLN 1,156 m ( -2.1% yoy), and reflected lower credit activity of corporate customers and continued migration of customers to the digital channels.

Bank Pekao achieved double-digit growth in key retail loans, +12.5% yoy to PLN 54,768m, while key corporate loans grew by +1.5% yoy to PLN 55,895m. In the first half of the year, new retail loans increased to 8,9bn (+38% yoy), driven by strong performance of retail loans PLN 4,8bn.

Retail deposits, up by +7.5% yoy to PLN 73,303m, while corporate deposits amounted to PLN 62,302m. (+3.7% yoy)

Bank continued improvement of operating costs efficiency, reducing costs by (-1.4% yoy) to PLN 1,594m. Cost / income ratio amounted to 45.4%.

Assets quality was maintained at a consistently sound level. All key parameters were improved, with the cost of risk at 39bps and the NPL ratio at 5.9%, while the provision coverage ratio increased to 75.4%.

The results of the second quarter are a continuation of the current solid trends. Further improvement of both performance and credit risk ratios were the basis of almost 10% increase in net profit under comparable conditions said Tomasz Kubiak CFO of Bank Pekao S.A.

The new management team relies on Pekao's strong position, using fresh insights and no restrictions related to the situation of the former strategic investor. We will also use the opportunities offered by co-operation within the largest financial group in Central Europe to increase the dynamics of the Bank's development" - said Michał Krupiński, Vice President of the Management Board of Bank Pekao S.A., head of the Board. 

[1] - Results comparable (with exclusion of the VISA transaction impact of PLN 213 million, and disposal of the NPL portfolio of PLN 121 million, and including the additional month of PLN 41 million banking tax on year 2016 results and with the exclusion of half of the fee to the compulsory bank restructuring fund of PLN 89 million affecting the year 2017 results

 


 

Bank Pekao SA operates for 88 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 second quarter of  2017 is at the level of 18.0%). 

 

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