Poland’s Getin Noble Bank SA plummeted to a record after the biggest opposition party detailed its tax plan for lenders if it wins power in elections due in October.
Getin Noble, controlled by billionaire Leszek Czarnecki, dropped 9.5 percent to 1.14 zloty on Tuesday, the lowest close since its 2012 Warsaw listing. Poland’s benchmark WIG20 gauge declined 2.4 percent to the lowest level in almost two years on a bad day for emerging-market stocks.
The Law & Justice party, which opinion polls show will win power in the election, seeks to raise about 5 billion zloty ($1.3 billion) from a 0.39 percent-tax on bank assets, Beata Szydlo, the group’s candidate for prime minister, said on Tuesday. Getin Noble, as well as Bank BPH SA, are “most exposed” because of their lower return-on-assets, or ROA, according to Piotr Palenik, an analyst at ING Bank Slaski SA.
If introduced as planned, the new tax would “consume Getin Noble’s full estimated profit next year,” Palenik said by phone on Tuesday. He forecast the bank to post a 308 million-zloty profit in 2016, compared with 360 million zloty last year.
Getin Noble’s ROA stood at 0.54 percent last year, while BPH was at 0.35 percent, compared with 1.1 average for Polish lenders, according to data compiled by Bloomberg. BPH shares declined 3.6 percent to 39.50, the lowest since September.
Palenik said Getin Noble’s stock was additionally hit by the strengthening Swiss franc, because the lender has a large chunk of its mortgages denominated in the currency. The zloty slumped 0.6 percent to a five-month low of 4.0572 per franc.