Idea Bank and Getin Noble released their results for the third quarter. The banks of Leszek Czarnecki in loss

It should be recalled that the results relate to the period prior to the outbreak of the KNF scandal.

In the third quarter, Idea Bank recorded a net loss of PLN 32.64 million. This is a sharp deterioration of the results because during the same period last year, it recorded a profit of PLN 97.43 million. According to the comments of the bank, it seems that this deterioration should be temporary.

Idea Bank explains the deterioration of the results

"It is linked to, among other things, a change in the scale and structure of sales, both for credit products and investment products.. This is reflected in the current lower amount of commission income, but in the future, their greater repeatability and lower amplitude of fluctuations. This very important and positive change in the business model will be temporarily tied to net costs.because the decrease in commission income is not offset in the initial phase by a reduction in commission costs. Current credit sales are dominated by proprietary products with relatively high margins and an acceptable cost of risk. New sales activities supported by new, recently introduced behavioral model that allows for better risk control. At the same time, the bank attaches great importance to cost control, which, in terms of y / y and T3 / T2, recorded a small percentage, 2%. increase "- says Idea Bank in a statement.

Net interest income amounted to PLN 161.58 million compared to PLN 165.74 million a year earlier. Net fees and commissions amounted to PLN 2,000 PLN compared to PLN 88.63 million a year earlier. The total assets of the bank amounted to 23.73 billion zlotys at the end of the third quarter of 2018, against 23.83 billion zlotys at the end of 2017. In the three quarters of 2018, Idea Bank recorded a net loss of PLN 412 million compared to PLN 194.83 million a year earlier.

Here it is also interesting to note that The third quarter, although much weaker than a year earlier, was significantly better than the second quarter of this year, when Idea Bank recorded a net loss of PLN 404.62 million.

Idea Bank says it will be better

"As part of the measures taken to strengthen capital ratios, the Bank has begun the process of optimizing the balance sheet total, which will be continued over the coming quarters." These measures, combined with the increase expected capital, should help strengthen the capital position of the bank., which – apart from changing the business model – is the current priority of the board of directors of the bank ", continues. Idea Bank also said that it was pursuing its analysis of the potential merger with Getin Noble Bank.

The KNF case in the comment of Idea Bank's manager

Mr. Pruski, Acting President of Idea Bank, spoke about the current situation of the media.

"The public debate we are facing since November 13 has no connection with the current activities of Idea Bank. Nevertheless, the obvious media buzz – understood in the context of the events that triggered it – touched the bank, its image and its brand with ricochet. I would like to assure our customers and our shareholders that we have taken all necessary measures to protect Idea Bank from the effects of the crisis on the Polish financial market and that all transactions with customers have been carried out without distortion ", stressed Pruski., Quoted in the message.

At the beginning of the stock market listing on the Warsaw Stock Exchange, Idea Bank shares lost more than 3%.

Idea Bank Quotes Source: stooq.pl

Getin Noble also had a loss, but the results are still the best of 2016.

In turn, Getin Noble Bank recorded a net loss of 14 million PLN in the third quarterbut it was smaller than expected by analysts. It's also a clear improvement in the results compared to last year, when the bank recorded a loss of 72.14 million zlotys.

"The past quarter has been a period of further improvement in the revenue situation, the stabilization of the cost of risk and continued operations in the implementation of the bank's capital strategy. In accordance with the previous declarations, the main shareholder has added 390 million zlotys to the bank since the beginning of the year, which, together with the reduction of the minimum capital requirements, has reduced the number of zlotys. 39, capital gap of nearly 500 million zlotys. In the third quarter of this consolidated year net profit reached PLN 14 million, which represents the best level since the implementation of the fixed improvement plan in 2016 " – we read in the message.

Net interest income amounted to PLN 304.68 million, compared to PLN 324.04 million a year earlier. Net fee and commission income amounted to PLN 34.07 million compared to PLN 42.07 million a year earlier. The bank's assets amounted to PLN 54.99 billion at the end of the third quarter of 2018, compared with PLN 59.82 billion at the end of the third quarter of 2017. The loss recorded since the end of the third quarter of beginning of the year amounted to PLN 177.79 million, compared with a loss of PLN 186.26 million. one year earlier.

"A significant reduction in the capital gap of the current year, in line with the strategy implemented, is a positive signal for the market and a confirmation of the declaration of the main shareholder. I believe that, despite the hype we have recently witnessed, the bank will make a determined effort to achieve the stated strategic objectives."- added the president.

Getin Noble: in the third quarter, more loans and more funds on the accounts

"The bank systematically increases the efficiency and revenue opportunities of the main business sectors. In 12 months, the Bank increased its sales of cash loans by 20%, which is the result of the dynamics observed for the entire market, "reads the statement.

The active development of the banking offer for companies, also stressed by the bank, also had a positive influence on the bank's results during the last quarter. In the third quarter of this year the value of loan sales in this segment exceeded 0.5 billion zlotys, peaking at almost 40%. quarterly increase.

"In the third quarter of this year, the bank also saw an increase in funds on current accounts and savings accounts." By the end of September this year, their share in total deposits was 34%, which means increase of the balance of PLN 1.4 billion in the last quarter. "- also written.

The shares of Getin Noble in the morning were up sharply, prices rose 5.5%.

Getin Noble Bank Quotes Source: stooq.pl