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Polish bank BZ WBK up earnings by 21% in 2013, pledges further improvement

February 2, 2014

Bank Zachodni WBK - controlled by Spain's Banco Santander - posted consolidated net profit attributable to owners of the mother company of PLN 1.98bn ( EUR 0.47bn ) in 2013, up by 21.3% y/y. Earlier, it said that the growth would be in single digits. Furthermore, the lender's president Mateusz Morawiecki said that this year, the bank would like to improve the comparable result (i.e. excluding costs of taking over Santander Consumer Bank ) further, beating PLN 2.0bn. However, excluding costs of integration with Kredyt Bank and of bancassurance transaction, the 2013 earnings dropped by 24.9% y/y to PLN 1.89bn. In Q4 alone, the attributable net profit was PLN 651. 9mn vs. profit of PLN 404.5mn a year before (while market consensus was PLN 660mn). Morawiecki also upheld the lender's plan to earmark 50% of annual profits for dividends. The bank is 70%-held by Banco Santander S.A. At the end of 2013, BZ WBK's loans and advances to customers totalled PLN 68.13bn vs. PLN 39.87bn a year earlier (i.e. without Kredyt Bank ). At that time, deposits from customers were PLN 78.55bn vs. PLN 47.08bn, respectively. Now, Morawiecki announced the plan to increase retail sales (excluding mortgage loans) as well as corporate loans (barring loans in the global banking) by 10% this year and in the global banking segment - by 30%. At the end of last year, BZ WBK was the third biggest bank in Poland in terms of assets. Its market share in total loans rose to 7.36% from 4.29% a year earlier, while the share of the deposit market grew to 8.39% from 5.25%, respectively.

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Source: IntelliNews - Weekly Reports

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