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ING Bank Śląski SAING BSK plans around 19 pct ROE, wants to allocate up to 75 pct of net profit to dividends
Listed lender ING BSK plans to achieve ROE of approx. 19 percent, a C/I ratio of approx. 37 percent and to allocate up to 75 percent of net profit to dividends, the bank announced in its strategy, presenting its long-term financial ambitions. By 2035, the bank wants to at least double its loan portfolio and deposit base.
The bank said that the main pillars of its strategy are the intensive development of its offering in the areas of investment, savings, pension, private banking and loans.
"In preparing the new strategy, we took into account the most important changes taking place in Poland and around the world: demographic processes, falling fertility rates, ageing populations, as well as new lifestyles and expectations of future generations. We paid attention to how technologies, especially artificial intelligence, are transforming the way financial services are used," said Michal Boleslawski, the bank's CEO, quoted in a press release.
"At the same time, we see a great opportunity for the Polish economy: infrastructure investments, energy transformation, capital inflows to Poland and investments by Polish companies abroad," he added.
He underlined that the bank's strategy reflects the current global changes.
"Our strategy is one of continuity, but at the same time it reflects the changes in the world, which are happening faster than ever before. We want to offer the highest quality services with the best digital solutions, mobile applications and AI-based technologies, while supporting our customers in their development, investments and everyday financial decisions. For companies, we will be a partner in projects shaping the future of the Polish economy," he added.
The ‘ING. In the rhythm of life’ strategy aims to strengthen the bank's market position in key areas, with ING setting its sights on 2035 for its business ambitions.
"By that time, we want to have over 7.5 million customers and we intend to significantly strengthen our position in the area of investment, pension and savings products," said Michal Boleslawski.
"We are planning intensive growth in our mortgage, consumer and corporate loan portfolios, while also striving to expand our market share in the leasing and factoring sector," he added.
The bank intends to achieve approximately a 2.5-fold increase in the volume of mortgage loans from PLN 61 billion (EUR 14.4 bln) in 2024. It also expects its market share in consumer loans to grow to over 8 percent from less than 5 percent in 2024.
ING wants to achieve more than a twofold increase in the value of corporate loans from PLN 96 billion (EUR 22.7 bln) in 2024. In corporate leasing, it expects its market share to grow to 5 percent from 1 percent in 2024.
The bank wants to achieve more than a twofold increase in retail deposits from PLN 126 billion (EUR 29.8 bln) in 2024 and approximately a twofold increase in corporate deposits compared to PLN 92 billion (EUR 21.7 bln) in 2024.
ING BSK in the retail segment in investment and pension products assumes an increase to over 12 percent market share from 6 percent in 2024 and an increase in the number of customers with investments to 1 million from 334,000 in 2024.
The bank plans to reach over 7.5 million customers compared to 5.1 million in 2024, including an increase in the number of individual customers to over 6.6 million from 4.6 million in 2024, the number of Private Banking customers to reach over 50,000 compared to 15,000 in 2024, and the number of corporate customers is expected to increase to over 800,000 from 573,000 in 2024.
The bank plans to introduce innovative additional services, including a subscription model.
ING wants to strengthen its leading position in NPS (Net Promoter Score) for retail and corporate customers, assuming a 95 percent level of process automation (80 percent currently), along with a 99 percent level of quality and timeliness in the handling of key operational processes.
The C/I ratio plan does not take into account the bank tax, and the assumed ROE is adjusted for MCFH.
"At the same time, the bank notes that in the last decade it has maintained an average cost of risk below 0.6 percent, which corresponds to the value considered to be the seasoned cost of risk," the strategy states.
In its updated dividend policy, the bank assumes stable dividend payments in the foreseeable future of up to 75 percent of the bank's annual net profit, while maintaining the principle of prudent management, taking into account development plans and related capital needs, as well as all regulatory requirements.
seb/ han/
