Profil:
Bank Handlowy SABank Handlowy targets ROE above 15 pct in 2025-27 strategy
The supervisory board of Bank Handlowy, the Warsaw-listed unit of Citigroup, has approved the group's strategy for 2025-2027, which assumes, among other things, a return on equity above 15 percent throughout the strategy period and maintaining cost discipline (C/I ratio) of 45 percent, the bank said in a market filing. The lender wants to continue paying a dividend of minimum 75 percent of net profit, subject to regulatory approval.
The strategy also calls for growth in institutional client assets of 7 percent per year on average over a three-year period.
"In view of the ongoing process of exiting the retail banking segment and the lack of final decisions on the matter at the date of adoption of the strategy, it assumes that the bank will continue to operate on the basis of two business segments - institutional banking and retail banking," Bank Handlowy said in the market filing.
As stated, business development will be carried out based on the competitive advantages of institutional banking, including the use of a global network.
"The bank is setting its sights on dynamic growth in the corporate banking segment by, among other things, developing its offering for customers with cross-border operations," the lender said.
"In addition, the bank will develop initiatives in line with the country's strategic priorities of energy transition and the increasing defence investments resulting from the geopolitical situation. The bank will support companies in moving towards a more sustainable business model and participate in investment banking client transactions," it added.
Bank Handlowy reported that acquiring new clients will also be an important part of the new strategy.
"Acquisition of new clients, particularly in the multinational and corporate banking segments, will also be an important element. Invariably, the bank wants to maintain its leadership position in the global corporate segment," it said.
The lender assured that in the retail banking segment, it will continue to offer the best service and products to customers. It wants to focus on maintaining the value and profitability of this segment.
As part of the implementation of its sustainability activities, the bank is to focus on supporting its customers in their sustainable transformation (including by providing PLN 2 billion or EUR 468.4 mln of financing classified as sustainable), improving its ESG risk management processes and continuing the transformation of its own operations.
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