Poland’s Bank Pekao posts 16% y/y decline in net profit, well below expectations

By Wojciech Kosc in Warsaw August 9, 2024

Warsaw-listed Bank Pekao, Poland’s second-biggest lender by assets, posted a net profit of PLN1.4bn (€328.3mn) in the second quarter, marking a 16% decline year-on-year and a 6% drop quarter-on-quarter. 

The net result came in at 6% below market expectations. The bank's interest income for Q2 amounted to PLN2.9bn, aligning with analysts' expectations of PLN2.9bn. Interest income thus fell 2% y/y and 5% q/q.

Fees and commissions income came in at PLN697mn, matching market estimates of PLN695.9mn. This represents a 1% y/y increase and a 4% rise in q/q terms.

Write-offs, excluding provisions for CHF loans, totalled PLN232mn in Q2, 19% higher than the market’s expectation of PLN195.3mn. In effect, write-offs decreased 5% y/y but grew 32% q/q.

Costs related to legal risks from foreign currency mortgages reached PLN206mn.

General administrative expenses, including amortization but excluding bank tax, were PLN1.34bn in Q2, 4% higher than the expected PLN1.29bn. These expenses rose 15% y/y but declined 9% on the quarter.

Bank Pekao’s stock price fell 0.52% to PLN143.75 on the Warsaw Stock Exchange at the end of the day’s trading on August 8.

 

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