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ING Bank Śląski SAING BSK bank raises write-offs for loan provisions due to worse situation of some companies
Listed lender ING BSK has increased the write-offs on loan provisions in the corporate segment due to the observed worse situation in some companies, the bank's CEO Brunon Bartkiewicz told a conference.
The CEO reported that the third quarter was another one in which the bank waited for a stronger economic rebound and increased investment levels. In his view, the prolonged period of lower economic activity has resulted in some problems being exposed at some companies.
"With the prolonged state of stagnation, the risks to our corporate clients are starting to show up in a rash manner. We are seeing some disruption at the individual entity level," Bartkiewicz said.
"(...) with the persistence of this situation, certain uncertainties, we see these disorders, and observing this, we create reserves. We do not predict a serious collapse, while we regulate conservatively and a little bit in advance," he added.
ING BSK's write-downs totalled PLN 348.2 million (EUR 79.9 mln) in the third quarter, 23 percent higher than analysts' expectations. Write-offs rose by 130 percent year on year and 19 percent quarter on quarter.
The quarterly cost-of-risk margin rose to 0.85 percent from 0.78 percent in the second quarter of 2024. In the corporate banking segment, it rose to 1.8 percent from 1.1 percent. In the retail segment, the bank reversed net provisions and sold a portfolio of NPLs.
seb/ nl/ ao/
