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Bank Pekao SABank Pekao expects slight increase in cost of risk, counts on fall in NPL in Q4 2024
Listed lender Pekao expects a slight increase in the cost of risk in the coming quarters. The deterioration in the non-performing loans ratio to over 5 percent in the third quarter was due to the recognition of default for several corporate clients, but the bank hopes the ratio will decline in the fourth quarter, Pekao's deputy CEO Marcin Gadomski overseeing the risk management division told a conference.
"The loan portfolio is behaving stably, it is in line with what we have seen in recent times. We are seeing some symptoms that some customers are encountering some problems in repaying their loans, for the time being this is not systemic," Gadomski said.
The deputy CEO reported that the bank had reclassified some 'significant' customers to so-called basket 3 in the third quarter and the NPL ratio had risen to above 5 percent.
"In the fourth quarter, we will take measures that will cause this ratio to decrease again," Gadomski said.
"The next quarters may be a period of increased cost of risk, we assume a slight increase. We do not rule out in the perspective of a certain quarter that we would slightly exceed the level of 50-60 basis points, while in the average perspective I assume that we will all the time act within the levels specified in our strategy," he added.
Pekao's cost of risk in the third quarter of 2024 fell to 43 basis points from 51 basis points in the previous quarter. The strategic target at the end of the strategy period in 2024 is a range of 50-60 basis points.
seb/ ao/