This report analyses the performance of Santander Bank Polska 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 9.56% yoy to PLN 2,396 mil in the second quarter of 2019. Interest income formed 67.8% of total revenues with the net interest margin decreasing 0.29 pp to 3.14% of total assets. Fees added a further 21.8% to total revenue generated in 2Q2019, down from an average of 24.1% as seen in the previous two years.
Operating costs grew by 12.1% yoy to PLN 1,027 mil, so cost to income ratio reached 42.9%, up by 1% compared to the previous two years. Staff accounted for 44.6% of total operating expenditures. At the end of second quarter of 2019, Santander Bank Polska operated a network of 682 branches and 14,058 employees.
Loans and deposits grew by 1.48% and 1.31% qoq respectively, so loan to deposit ratio reached 94.0% at the end of 2Q2019. That’s up from 93.6% the previous year. Equity reached 12.4% of assets and capital adequacy ratio amounted to 16.3% at the end of the second quarter of 2019.
NPLs were 4.30% of total loans at the end of the quarter. Provisions covered 77.0% of non-performing loans
Santander Bank Polska stock traded at PLN 371 per share at the end of second quarter of 2019 implying a market capitalization of USD 10,149 mil. This put stock at a 12-month trailing price to earnings of 16.7x and price to book value of 1.48x as of the end of 2Q2019.