This report analyses the performance of Bank Ochrony Srodowiska 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 decreased 8.15% yoy to PLN 150 mil in the second quarter of 2019. Interest income formed 71.2% of total revenues with the net interest margin increasing 0.38 pp to 2.31% of total assets. Fees added a further 16.8% to total revenue generated in 2Q2019, down from an average of 17.5% as seen in the previous two years.
Operating costs dropped by 3.19% yoy to PLN 84.2 mil, so cost to income ratio reached 56.1%, down by 6.57% compared to the previous two years. Staff accounted for 48.9% of total operating expenditures. At the end of second quarter of 2019, Bank Ochrony Srodowiska operated a network of 56.0 branches and 1,364 employees.
Loans and deposits dropped by 1.09% and 0.185% qoq respectively, so loan to deposit ratio reached 78.4% at the end of 2Q2019. That’s up from 73.7% the previous year. Equity reached 11.8% of assets and capital adequacy ratio amounted to 17.3% at the end of the second quarter of 2019.
NPLs were 12.5% of total loans at the end of the quarter. Provisions covered 68.4% of non-performing loans
Bank Ochrony Srodowiska stock traded at PLN 7.78 per share at the end of second quarter of 2019 implying a market capitalization of USD 194 mil. This put stock at a 12-month trailing price to earnings of 9.82x and price to book value of 0.333x as of the end of 2Q2019.