trending Market Intelligence /marketintelligence/en/news-insights/trending/7ag1OEWYhk9QwbrgRFGQJw2 content esgSubNav
In This List

BNP Paribas Polish unit eyes 10% ROE

Blog

Banking Essentials Newsletter: July Edition - Part 3

Blog

Banking Essentials Newsletter: July Edition - Part 2

Blog

Anticipate the Unknown Go Beyond Fundamentals to Uncover Early Signs of Private Company Credit Deterioration

Blog

Taking Loss Given Default Estimation to the Next Level: An Aspiration for All Creditors, Not Just Banks


BNP Paribas Polish unit eyes 10% ROE

Polish unitBank BGZ BNP ParibasSA said April 13 it plans to increase its return on equity toaround 10% under its updated strategy for 2016 to 2018.

The lenderalso wants to have a market share of more than 5% in loans and deposits by theend of the period and reduce its cost-to-income ratio to about 55% from the2015 level of 74% excluding integration costs.

Inaddition, the updated strategy targets a net banking income increase at acompound annual growth rate of 14% thanks to "new initiatives across allbusiness lines."

"Thebasis for effective realization of the strategy is completion of the process ofintegration of BankBGZ and BNP Paribas Bank Polska by the end of 2016, and also the legalmerger of Bank BGZBNP Paribas with Sygma Bank Polska in the middle of the year," the banksaid.

Costsynergies stemming from the mergers are expected to improve the lender'sefficiency, which will also be positively influenced by expected income growth.

Thelender noted that estimated total synergies from the integration with BNPParibas Bank Polska will amount to 350 million Polish zlotys in 2017, including258 million zlotys in cost synergies, while 2018 synergies resulting from themerger with Sygma are expected to reach 86 million zlotys, including 31 millionzlotys in cost synergies.

As of April 12, US$1 wasequivalent to 3.78 Polish zlotys.