Poland's PKO BP bank posts 3rd quarter profit

Radek Pietruszka/PAP

PKO BP, Poland’s largest lender, posted a net profit of EUR 805 million after three quarters, a 77.3-percent increase year on year.

The bank's consolidated financial results for the three quarters reveal that the biggest growth was registered in the net fee and commission income, up by 9.07 percent, as well as in total assets, which increased by 6.63 percent.

PKO saw a 49.54-perent reduction in expected net credit losses, while it also reduced its administrative expenses by 2 percent.

Although Bank PKO BP is satisfied with the effects of a programme it started last month to convert FX mortgages into PLN ones, clients could be hit by the recent interest rate hikes.

"We estimated that that level (of FX mortgage settlements - PAP) may approach 70-80 percent, but looking at the market situation and the increase in the interest rates I would estimate today that this percentage might be lower," Piotr Mazur, the banks deputy CEO, told a teleconference.

Next year, PKO BP expects a boost of PLN 1-1.2 billion (EUR 217-260 million) in net interest income (NII) owing to the 115 bp hikes in interest rates carried out by the Monetary Policy Council in the past couple of months.

The bank's management board also said that they were going to start working on a new strategy soon.

"The new strategy will answer all changing circumstances, including our clients' new needs, what the pandemic changed — an even faster digitisation process, and automatisation of certain processes," acting CEO Iwona Duda said.

"But it will also take into account lessons which can be drawn from running a business during a pandemic," she added.