Idea Bank’s management calms investors after recent stock plunges

The management of WSE-listed Idea Bank issued a statement in which it reiterated that the lender is in stable condition and recent stock declines have “no fundamental grounds.” “There are no fundamental grounds justifying the recent stock price fluctuations. The bank's situation is stable,” the bank wrote. The bank added that despite recent drops were not accompanied by increased trading volumes. Idea Bank stock lost nearly 60 percent of its value since the beginning of the year, including 7.7 percent drop in the last three days. Analysts link the last days' declines with the troubled WSE-listed debt collector GetBack. Idea Bank and its subsidiary Lion’s Bank sold a significant number of GetBack’s bonds to its clients. Financial Supervision Authority KNF is currently investigating whether investors were properly informed of risks involved in purchasing corporate bonds. Idea Bank was also a former owner of GetBack, but sold the company in 2016. The value of outstanding bonds of debt collecting firm GetBack stood at PLN 2.6 billion at end-March.