Profil:
PKO BP SAPKO BP still sees its interest margin remaining stable, despite faster decline in interest rates
Poland's largest lender by assets PKO BP expects market interest rates to fall faster than the bank had previously assumed, but maintains that the bank's interest margin should remain stable, deputy CEO Krzysztof Dresler told a conference following the release of bank's financial report.
"As far as interest income is concerned, the second quarter is the first quarter in the new environment in which the revaluation of interest-bearing assets and liabilities is visible, and we are seeing a certain decline in the interest margin for the second quarter," Dresler told the conference.
"We estimate that we will be able to cushion the impact of the interest rate cut to some extent (...) We are not changing our view that interest margin stability should prevail, even though our current view on interest rates is slightly different from what we thought earlier," he added.
Net interest income in the second quarter amounted to PLN 6.153 billion (EUR 1.4 bln), up 21.7 percent year on year and 2.9 percent quarter on quarter.
The bank reported that despite a decline in the interest margin in the second quarter to 4.91 percent from 4.95 percent in the first quarter, it generated higher interest income, which was possible thanks to a double-digit increase in financing volumes and customer savings.
PKO BP estimates that the reference rate will fall to 4.75 percent in 2025 and to 4 percent in 2026.
Dresler announced that the bank may carry out another issue under the MREL requirement by the end of the year.
seb/ nl/ ao/
