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Bank Handlowy SABank Handlowy expects stable interest margin, plans to secure subordinated loan
Bank Handlowy, the Warsaw-listed unit of Citigroup, anticipates maintaining its net interest margin at a stable level in the coming quarters and plans to secure a subordinated loan by the end of the year for capital reasons, according to deputy CEO Patrycjusz Wojcik.
"We are in the process of finalizing a subordinated loan, which we intend to draw before the end of the year, considering the growth of our assets, as well as changes, expected from CRR3 and the increased countercyclical buffer next year," Wojcik told a conference.
"This will be a sufficient amount to ensure our capital position is safe," he added.
Wojcik noted that the impact of CRR3 on the bank in 2025 is not expected to be material. The bank's interest margin rose to 4.89 percent in the third quarter from 4.7 percent in the second quarter.
"I cannot declare that the upward trend will continue, but we will do everything to keep the level stable. Given our plans for growth in customer assets, I believe this is a realistic assumption for at least the next few quarters," he said.
He also mentioned that falling interest rates will naturally affect the bank's interest margin, estimating that the bank's sensitivity to a 25 basis point decrease in rates would result in an annual impact of approximately PLN 50 million (EUR 11.5 mln).
seb/ nl/ han/
