Bank Pekao recorded PLN 630.78 million of consolidated net profit attributable to shareholders of the parent company in Q3 2021 against PLN 370.85 million of profit a year earlier, the bank said in its report.
The third quarter of 2021 brought a continuation of the dynamic rebound of Bank Pekao’s financial results, the consolidated net profit was 70% higher y / y, which was due to increases in all strategic segments of the bank’s operations, including the volumes and sales of loans for all customer groups, as well as reductions operating costs, the bank stressed.
Net interest income amounted to PLN 1,387.06 million compared to PLN 1,203.05 million a year earlier. Net fee and commission income amounted to PLN 703.66 million compared with PLN 595.11 million a year earlier.
The interest margin achieved in the third quarter of 2021 was 2.34% and was 0.19 percentage points higher than the margin achieved in Q4 2020, thanks to commercial activities and the positive impact of assets acquired from Idea Bank, the bank said in the management report. In Q3 last year, the net interest margin was 2.6%.
Net impairment losses on expected credit losses amounted to PLN 178.14 million in Q3 compared to PLN 277.39 million a year earlier.
The cost of risk in Q3 was 0.42% compared to 0.91% a year earlier. In the third quarter of 2021, the Group made an additional PLN 41.9 million write-offs for legal risk related to FX mortgage loans in CHF.
General administrative expenses amounted to PLN 942.08 million in Q3 compared to PLN 878.21 million a year earlier.
Bank Pekao’s strategic goal until 2024 is to reduce the cost / income ratio to 42%. In the third quarter of 2021 it was 43.4% compared to 45.4% a quarter earlier, it announced.
Costs / income (including BFG costs) amounted to 50.1% in Q3 compared to 50.2% a year earlier.
The bank’s total assets amounted to PLN 247.36 billion at the end of Q3 2021 compared to PLN 233.22 billion at the end of 2020.
In Q1-Q3 2021, the bank generated PLN 1,481.21 million of consolidated net profit attributable to shareholders of the parent company, compared to PLN 916.9 million of profit a year earlier.
The net profit of the Bank Pekao SA capital group attributable to the bank’s shareholders in the three quarters of 2021 amounted to PLN 1,481.2 million, returned to the level generated in the three quarters of 2019 before the pandemic. This result was higher by PLN 564.3 million , ie 61.5% y/y, the bank also reported.
The Group’s operating income in the three quarters of 2021 amounted to PLN 6,265.1 million and was higher by 5.8% y / y, mainly due to the non-interest result, the increase of which compensated for the negative impact of interest rate cuts.
The net interest income generated in the three quarters of 2021 amounted to PLN 4,060.1 million and was higher by PLN 63.2 million, 1.6% compared to the result achieved in the three quarters of 2020, despite the negative impact interest rate cuts Net fee and commission income achieved in the three quarters of 2021 amounted to PLN 1,992.3 million and was higher by PLN 215.0 million, 12.1% compared to the result achieved in the three quarters of 2020, mainly due to the adaptation of the offer to the changing market conditions and the positive sentiment on the capital markets, which compensated for the negative impact of lower customer activity in the pandemic (mainly translating into lower commissions on card operations) and the negative impact of regulatory changes in the area of investment funds , the bank reported.
Net loss allowances for expected credit losses in the three quarters of 2021 amounted to PLN 546.1 million and was lower by 49.5% y / y, mainly due to the gradual normalization of write-offs towards the levels observed before the outbreak of the pandemic.
Operating costs, including contributions and contributions to the Bank Guarantee Fund, in the three quarters of 2021 amounted to PLN 3,141.8 million and were higher by PLN 167.7 million, i.e. 5.6% y / y, mainly due to integration costs resulting from the takeover of a separate part of Idea Bank, the reconstruction of variable salary costs and the growing depreciation, which is related to investments in the transformation of the bank. Cost dynamics continued in line with the assumptions of the strategy, the report also said.
Source: Bank Pekao and ISBnews
