Santander's Polish unit BZ WBK reiterates plan to improve earnings in entire 2014

By bne IntelliNews August 1, 2014

Poland's third-biggest lender - Bank Zachodni WBK - controlled by Spain's Banco Santander - posted consolidated net profit of PLN 504mn in Q2 of 2014, up from PLN 419mn a year before and up vs. market consensus of PLN 505mn. In H1, it increased its earnings by 20% y/y to PLN 953mn. Furthermore, its president Mateusz Morawiecki declared that the bank targeted PLN 2.0bn profit for the entire year and stressed it wants to continue to improve its results.

In April, he expected BZ WBK's net earnings (without one-offs) to increase by more than the 3-5% growth expected by "various other bank CEOs." In 2013, it posted consolidated net profit attributable to owners of the mother company of PLN 1.98bn, up by 21.3% y/y.

Morawiecki also said he expects the bank's interest margin to stabilise at around 3.7% reported in Q2 of 2014 (vs. 3.6% in Q1 of 2014 and compared to 3.4% in Q2 of 2013).

In H1 of 2014, BZ WBK's gross loans rose by 3% y/y to PLN 75.2bn, while deposits were up by 4% to PLN 77.8bn. In May of 2014, its market shares were: 7.41% in deposits and 7.96% in loans.

The management also pointed to improving credit quality with loan loss provisions below management expectation - its NPLs were 7.5% in Q2, unchanged from Q1 of 2014 and down from 7.9% at the end of 2013.

In H1 of 2014, BZ WBK's ROE improved by 4.6pps y/y to 17.2%, while excluding integration costs, it amounted to 18.8%. Its capital adequacy ratio was 13.3% and Tier 1 reached 12.0%. 

Related Articles

Poland rescinds TVN’s fine

Poland’s National Broadcasting Council (KRRiT) has cancelled on January 10 its own decision to fine the US-owned media group TVN PLN1.48mn (€350,000) for covering protests against ... more

Poland’s PKN Orlen launches offer to delist Czechia’s Unipetrol

Poland’s state-controlled oil and gas company PKN Orlen has launched an offer to take over Czech refiner Unipetrol, the Polish company said on December 13. PKN Orlen said it will go through with ... more

Poland passes partial ban on Sunday retailing

The Polish parliament on November 24 passed a bill that bans retailing on the first and last Sunday of each month. The passing of the law – which still has to be reviewed by the Senate and ... more

Dismiss