Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

PKO Posts Weakest Profit in Three Years as Loans Revenue Shrinks

Aug. 29 (Bloomberg) -- PKO Bank Polski SA, Poland’s largest lender, posted the lowest quarterly profit in three years as income from loans shrank.

Net income dropped 21 percent to 752.8 million zloty ($234 million) in the second quarter from a year earlier, the Warsaw-based bank said in a presentation on its website today. This compares with the 724.5 million zloty mean estimate of 13 analysts surveyed by Bloomberg. Net interest income, the difference between what PKO pays on deposits and charges for loans, fell 21 percent to 1.57 billion zloty.

State-controlled PKO has seen profit fall this year after the country’s record cuts in interest rates reduced income from loans. The National Bank of Poland has slashed borrowing costs by 225 basis points, or 2.25 percentage point, since November to 2.5 percent after the country’s inflation rate slumped amid an economic slowdown.

PKO’s fee income fell 1 percent to 772.4 million zloty in the second quarter, while bad-loan provisions declined to 418.9 million zloty from 573.8 million zloty a year earlier.

PKO shares fell 0.8 percent to 37.8 zloty at 9:20 a.m. in Warsaw, heading for the lowest close since Aug. 7.

To contact the reporter on this story: Marta Waldoch in Warsaw at mwaldoch@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.