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Idea Bank to increase ROE, curb costs as part of 2020 strategy

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Idea Bank to increase ROE, curb costs as part of 2020 strategy

Idea Bank SA will strive to increase its return on equity ratio to more than 10% by 2020 and boost its return on assets ratio to above 1%, the Polish lender said when presenting its 2020 strategy March 9.

Idea wants to see its assets grow by at least 2 billion Polish zlotys a year. It also plans to reduce the cost-to-income ratio to below 45% by 2020 and keep the cost of risk for new loans below 2%.

With a current market share of 15% in the small-companies segment, Idea Bank will pursue business activities to increase lending, leasing products and factoring services in this segment.

The bank, which posted a consolidated net profit of 231 million zlotys for 2017, saw its ROE and ROEA ratios at 8.9% and 5.8%, respectively, at the end of the year, while its cost-to-income ratio, cleared of one-off events and the asset tax, stood at 48.5%.

Meanwhile, Idea CEO Tobiasz Bury said the lender is considering a dividend payout that would consist of just a small portion of the 2017 profit, Puls Biznesu reported March 9. The executive noted, however, that the final size of the dividend is still subject to discussions and will also depend on regulatory approval.

As of March 9, US$1 was equivalent to 3.40 Polish zlotys.