This report analyses the performance of PKO BP 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 14.2% yoy to PLN 3,739 mil in the second quarter of 2019. Interest income formed 67.9% of total revenues with the net interest margin increasing 0.02 pp to 3.10% of total assets. Fees added a further 20.3% to total revenue generated in 2Q2019, down from an average of 22.4% as seen in the previous two years.
Operating costs grew by 0.558% yoy to PLN 1,442 mil, so cost to income ratio reached 38.6%, down by 12.2% compared to the previous two years. Staff accounted for 55.3% of total operating expenditures. At the end of second quarter of 2019, PKO BP operated a network of 1,132 branches and 28,057 employees.
Loans and deposits grew by 2.59% and 0.352% qoq respectively, so loan to deposit ratio reached 93.5% at the end of 2Q2019. That’s down from 94.7% the previous year. Equity reached 12.0% of assets and capital adequacy ratio amounted to 18.6% at the end of the second quarter of 2019.
NPLs were 4.60% of total loans at the end of the quarter. Provisions covered 77.4% of non-performing loans
PKO BP stock traded at PLN 42.8 per share at the end of second quarter of 2019 implying a market capitalization of USD 14,156 mil. This put stock at a 12-month trailing price to earnings of 13.0x and price to book value of 1.35x as of the end of 2Q2019.