This report analyses the performance of Bank Handlowy for the 2Q2019. You will find all the necessary details regarding volume growth, market share, margin and asset quality development in the Bank.
The key highlights are:
Revenues increased 3.13% yoy to PLN 579 mil in the second quarter of 2019. Interest income formed 49.8% of total revenues with the net interest margin decreasing 0.16 pp to 2.28% of total assets. Fees added a further 26.5% to total revenue generated in 2Q2019, up from an average of 25.9% as seen in the previous two years.
Operating costs dropped by 0.288% yoy to PLN 279 mil, so cost to income ratio reached 48.3%, down by 12.6% compared to the previous two years. Staff accounted for 45.7% of total operating expenditures.
Loans and deposits dropped by 1.74% and 3.95% qoq respectively, so loan to deposit ratio reached 54.1% at the end of 2Q2019. That’s down from 58.1% the previous year. Equity reached 13.2% of assets and capital adequacy ratio amounted to 16.6% at the end of the second quarter of 2019.
NPLs were 4.53% of total loans at the end of the quarter. Provisions covered 84.4% of non-performing loans
Bank Handlowy stock traded at PLN 53.7 per share at the end of second quarter of 2019 implying a market capitalization of USD 1,881 mil. This put stock at a 12-month trailing price to earnings of 13.9x and price to book value of 1.04x as of the end of 2Q2019.