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Report: PKO's FY'17 net profit could cross 3B zlotys threshold, CEO says

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Report: PKO's FY'17 net profit could cross 3B zlotys threshold, CEO says

The consolidated net profit of PKO Bank Polski SA could exceed 3 billion Polish zlotys in 2017, news agency PAP reported Oct. 4, citing CEO Zbigniew Jagiello.

The executive said in August that the bank's 2017 full-year profit will be at least at the 2016 level. However, recent meetings with investors indicated they expect the bank to top a 3 billion zloty net profit mark, and it seems that their expectations could be met, taking into account the good economic situation in Poland, which is set to boost loans and deposits, PAP cited Jagiello as saying.

He reportedly noted that the financial results of PKO could improve further in 2018 thanks to the economic growth, with positive trends to be maintained in the lender's interest income and fee and commission income figures.

Jagiello also said that PKO's cost of risk, which is now between 70 basis points and 75 basis points, could drop by a few basis points in the future, but the fall will not be as significant as in recent years, PAP added.

Jagiello also expects strong single-digit growth in the corporate lending segment in 2018 due to growing investments, especially in the public sector, although he expressed concern that some local lenders may pursue an aggressive loan-pricing policy, the news outlet said in a separate same-day report.

In the retail banking segment, the executive expects an increase in mortgage lending but believes that growth possibilities in consumer lending will be limited due to market saturation, PAP noted.

PKO posted second-quarter net profit of 875 million zlotys, down 1.8% year over year. For 2016, the bank reported group net profit attributable to equity holders of the parent company of 2.87 billion zlotys, up from 2.61 billion zlotys in 2015.

As of Oct. 3, US$1 was equivalent to 3.67 Polish zlotys.