PKO BP lender's shares worth PLN 100 bln for first time in history, CEO points to reasons

During Tuesday's session, PKO BP's share price exceeded the level of PLN 80 (EUR 19.15) per share, and thus its total capitalisation exceeded PLN 100 billion (EUR 23.94 bln). The maximum price paid for one share so far has been PLN 81.08 (EUR 19.41). At around 12.30 pm local time, the bank's share price was at PLN 79.76 (EUR 19.09), with a turnover of more than PLN 100 million (EUR 23.94 mln).

"We are happy, this is a historical record. We had such plans to raise the valuation to PLN 100 billion, but I don't think anyone expected it to happen so quickly," CEO Midera said behind the scenes at the CEE Capital Markets conference organised by PKO BP in London.

"What we are most pleased about is that many analysts are raising our target prices in their recommendations," he added.

PKO BP's CEO pointed out that over the past year, the lender's capitalisation has increased from PLN 45 billion (EUR 10.77 bln) to PLN 100 billion (EUR 23.94 bln).

"On the one hand, we are growing volumes faster than the market, this can be clearly seen from the last results in 2024, we also see it now from the first quarter readings. We are growing faster than the market in key business lines, in corporate and retail financing, but we also have faster than market growth rates in interest and commission income," Midera said, when asked about the reasons for this increase in valuation.

"Our main objectives are defined in the strategy: strengthening our market position and organic growth, this is what we are focusing on, and we want to increase our market share both in retail and in the corporate part. We have this very precisely defined in the individual business lines, we show it, for example, in the corporate area, where we intend to increase our share from 16 to 18 percent," he added.

According to the CEO, achieving the financial targets set out in the strategy will support the stock market valuation. In this context, he mentions ROE above 19 percent, cost/income ratio around 30 percent, the ability to pay dividends in the band of 50-75 percent of profit, and credit risk under control.

"I think the market has already discounted interest rate cuts in our valuation and in the increase in that valuation. We are prepared for rate cuts," Midera assessed.

"The increase in volumes, in customer activity, the double-digit, highest in the market, increase in commission income are all preparing the bank to operate in a completely different world of reduced interest rates," he added.

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