The giant grows

Poland's largest bank, UniCredit Group-controlled Pekao, reported a Q3 net profit of zł.841 million and net interest income of zł.1.13 billion, amounting to 51.8 and 43 percent y/y growth, respectively.

Both the net profit and net interest income results met the average market forecasts of zł.840 million and zł.1.16 billion, respectively. The results also include data from a part of BPH bank, acquired by Pekao near the end of 2007. The Q1-Q3 consolidated net profit reached zł.2.8 billion, a y/y growth of 43 percent.

"Thanks to a conservative approach to risk management in the past, we can meet our key strategic goals specified in our three-year plan," said Pekao's president, Jan Krzysztof Bielecki.

The value of individual deposits grew 8.1 percent in the Q1-Q3 period to reach zł.39.39 billion, while corporate deposits fell by 16.8 percent to zł.41.63 billion.

The bank also saw a 4.8 percent year-to-date increase in loans, which reached zł.77.4 million by the end of September. Individual and corporate loans saw growth of two and 6.2 percent, respectively.

Pekao may limit its dividend policy to concentrate on building its capital group, although no final decision has yet been taken in that matter, Bielecki added.

"A solid capital base is a necessity in times of market turbulence," he noted.

Pekao reiterated its forecast of a 10-percent increase in revenues for 2008, although this result is dependent upon the market situation.

"The year-on-year increase of revenues should be a two-digit percentage figure. Of course, the market needs to help us in that," said Luigi Lovaglio, first vice president of the management board of the bank.