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BGŻ BNP Paribas eyes faster-than-market, organic growth under new strategy

Bank BGZ BNP Paribas SA said May 17 that it foresees a more than 10% return on equity and a cost-to-income ratio of about 50% under its new 2021 strategy, the lender said May 17.

BNP Paribas SA's Polish unit also expects its net banking income to grow faster than the market average, fueled by the upcoming takeover of Raiffeisen Bank Polska SA's core business.

The planned acquisition, which is still pending regulatory approvals, will make it possible for BGZ BNP Paribas to enhance its presence in large cities, develop its wealthy customer base and strengthen its position in the private banking segment, as well as the banking segment targeting small and medium-sized companies, the lender said.

CEO Przemyslaw Gdanski expects BGZ BNP Paribas' net banking income to grow by an average 7% per year under the strategy, with the retail segment growing by 8% annually, news agency PAP reported the same day.

The lender also plans to lower its costs of risk to between 55 basis points and 60 basis points from 67 basis points in 2017, the newswire cited Gdanski as saying.

The executive added that the bank does not plan further acquisitions after the takeover of Raiffeisen Bank Polska's key operations. The takeover transaction is expected to be completed in the last quarter of 2018, and the operating merger will be finalized in 2019, PAP noted.