This report analyses the performance of ING Bank Slaski 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 10.8% yoy to PLN 1,451 mil in the second quarter of 2019. Interest income formed 72.2% of total revenues with the net interest margin decreasing 0.02 pp to 2.83% of total assets. Fees added a further 24.8% to total revenue generated in 2Q2019, down from an average of 24.8% as seen in the previous two years.
Operating costs grew by 4.7% yoy to PLN 581 mil, so cost to income ratio reached 40.0%, down by 6.83% compared to the previous two years. Staff accounted for 50.4% of total operating expenditures. At the end of second quarter of 2019, ING Bank Slaski operated a network of 332 branches and 8,170 employees.
Loans and deposits grew by 2.91% and 2.14% qoq respectively, so loan to deposit ratio reached 89.9% at the end of 2Q2019. That’s up from 86.8% the previous year. Equity reached 9.45% of assets and capital adequacy ratio amounted to 15.1% at the end of the second quarter of 2019.
NPLs were 2.98% of total loans at the end of the quarter. Provisions covered 73.2% of non-performing loans
ING Bank Slaski stock traded at PLN 202 per share at the end of second quarter of 2019 implying a market capitalization of USD 6,950 mil. This put stock at a 12-month trailing price to earnings of 16.2x and price to book value of 1.85x as of the end of 2Q2019.