BPH-PBK targets EU accession advisory business

By Timothy Sifert

Domestic financial group BPH-PBK plans to target more European Union-related advisory business as the country comes closer to accession, Józef Wancer, the company's president, told the Business Journal.

The celebrated "Yes" vote in the referendum triggered the country's third-ranking bank to more concertedly pursue opportunities in which it would advise local corporations on the best ways to access EU funds, and how to successfully function in a new and more active market. Wancer said it is too early to tell how much of the bank's overall business this strategy would comprise in the future, but noted it would augment its existing strategy, which includes targeting retail and corporate clients.

"We are going to focus more on advisory work and advising companies on how to obtain funds from the EU," Wancer said. "What to do to get them, where to go and so on and so on."

He explained that BPH-PBK has already signed on clients for advisory work in this area, but added that its client roster should increase because companies want to ensure they reap every złoty possible under the accession agreement.

In addition to the company's existing strategy, targeting EU-related business is a necessary tactic to make up for revenues lost because of the country's decreasing interest rates.

"This can be a good source of additional profit on the back of (BPH-PBK's) existing strategy," said Artur Szeski, analyst at CDM Pekao. "Every bank would like to get its foot in this door."

BPH-PBK is already in line to have a robust year, Szeski said, whether or not EU membership rakes in additional fees. He expects the bank to record €585 million (zł. 2.6 billion) in banking revenues this year, compared to €608 million

(zł. 2.7 billion) last year. Szeski blames the negative difference on declining interest rates.

"Banks have had to get by on thinner and thinner margins," he noted.

Szeski praised BPH-PBK for its cost-cutting measures thus far, which he said would lower the bank's overall expenses by €11.3 million (zł. 50 million) this year.

Wancer noted the bank also expects to pursue more business with multinational companies wanting to procure financial rewards from an open border and reduced business restrictions between Poland and current member states.

"We are servicing multinational companies, those that are based outside and inside Poland," he said.

Following the referendum, corporations outside of the country have become more aware of business opportunities here. The imminent EU accession promotes the country as a safer haven and less precarious destination than before, Wancer added.

BPH-PBK also expects to soon see material improvements in the economy.

"We are expecting the economy to pick up," Wancer said. In that vein, the banks would also be able to squeeze more cash out of their more traditional revenue streams.

Wancer also added that the recent news that HVB, which owns nearly 19 percent of BPH-PBK, would sell its entire stake to Bank Austria Creditanstalt - already the owner of 52.2 percent of the company - would not have an effect on the plans executives are implementing.

He declined to discuss further any other possibilities for the stock transaction, which has been valued at as much as €440 million (zł.1.9 billion).