Bank Handlowy expects revenues to exceed PLN 1 bln in coming quarters

"Our prediction is that revenues in the coming quarters will stay above PLN 1 billion. Of course, we also expect the impact of falling interest rates, which will be visible no earlier than the second quarter of 2025," deputy CEO Patrycjusz Wojcik told a conference.

The bank reported that in th third quarter of 2024, its revenues once again exceeded PLN 1 billion (EUR 229.5 mln), with PLN 767 million (EUR 176.02) coming from institutional banking (a 5 percent decrease quarter-on-quarter) and PLN 322 million (EUR 73.9 mln) from retail banking (a 9 percent increase quarter on quarter).

The reserve balance in the third quarter was positive at PLN 0.2 million (EUR 45.9 mln).

"Considering the growing loan portfolio, it is evident that we are expanding in well-selected customer segments," Wojcik added.

Citi noted that the reduction in provisions was related to the retail banking segment, improving by PLN 7.7 million (EUR 1.8 mln) year on year due to the complete reversal of a management provision established during the COVID-19 pandemic, amounting to PLN 17 million (EUR 3.9 mln).

In institutional banking, Citi Handlowy's loan balance increased by 8 percent year on year. The strategic segment of small and medium enterprises (SMEs) was a key growth driver, growing by 13 percent.

The large enterprises segment recorded an 11 percent increase year on year. Throughout the third quarter the bank provided over PLN 1.3 billion (EUR 298.4 mln) in new and increased financing to its corporate clients.

"Our loans are growing, particularly for medium and large enterprises. This is a positive signal; demand for loans from institutional clients is slowly reviving, and we expect this trend to continue in the coming quarters," CEO Elzbieta Czetwertynska stated.

In institutional banking, loan growth was reported at 4 percent quarter on quarter.

seb/ nl/ han/