Pekao Q4 profit soars

WSE-listed Bank Pekao, posted PLN 1.05 billion attributable net profit in Q4 2017, up by an impressive 113 percent y/y, and above the consensus expectations for PLN 964 million. Revenue from interests increased by 7 percent y/y to PLN 1.19 billion, while earnings from fees and commissions, grew by 0.8 percent y/y to PLN 617.2 million. For 2017, the bank had PLN 2.47 billion net profit, up from PLN 2.27 billion in 2016. The 2017 results were boosted by a one-off gain on asset manager Pioneer unit share purchase. “Supported by the strong macro backdrop, Pekao achieved a net profit of nearly PLN 2.5 billion, with a historical record profit in the fourth quarter at PLN 1.05 billion. In retail banking, we achieved a record-breaking increase in sales of key mortgage and cash loan products (23.1 percent y/y growth), strengthening our market position in those offerings. The bank's focus on cross-sell and acquisition of new customers combined with the high sales dynamics allowed us to rebuild net commission income, which in the fourth quarter accelerated by 6.4  percent q/q. In spite of continued low rates environment, we generated the highest net interest income in four years at PLN 4.5 billion,” Pekao CEO Michał Krupiński said. Bank’s assets amounted to PLN 185.47 billion at end-2017, compared to PLN 174.21 billion at end-2016.