Yahoo Finance

• Revenue: Above PLN1 billion in the third quarter.

• Net Profit: PLN545 million, highest level in the last 4 quarters.

• Lending Growth: Up 7% year-over-year.

• Deposit Volume: Up 2% for the total bank.

• Total Capital Ratio: 22.8%, well above regulatory thresholds.

• Institutional Banking Revenue: Decreased by 5% quarter-over-quarter.

• Client Revenue in Institutional Banking: Increased by 6% quarter-over-quarter.

• Trade Financing Assets: Grew by 18% quarter-over-quarter.

• Consumer Bank Top Line: Up 9% quarter-over-quarter.

• Cash Loan Portfolio: Up 2% quarter-over-quarter.

• Wealth Management Clients: Up 2% quarter-over-quarter.

• New Lending Volumes: Over PLN1.3 billion granted or increased.

• FX Volumes: Up 13% year-over-year.

• Net Interest Income (NII): PLN819 million, highest in the last 4 quarters.

• Net Interest Margin (NIM): Up 19 basis points quarter-over-quarter.

• Net Fee and Commission Income: Down by PLN7 million, 5% quarter-over-quarter.

• Expenses: Lowest in the last 4 quarters, PLN347 million, down 2% quarter-over-quarter.

• Cost of Risk: Low cost of credit, with a release of PLN70 million covered provision.

• Return on Equity (ROE): 22%.

• Return on Assets (ROA): 2.3%.

• Warning! GuruFocus has detected 3 Warning Sign with FRA:6HW.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bank Handlowy w Warszawie SA (FRA:6HW) reported a solid quarter with revenue exceeding PLN1 billion and a net profit of PLN545 million, marking the highest level in the last four quarters.

• The lending portfolio increased by 7% year-over-year, driven primarily by institutional clients, and the deposit volume rose by 2%.

• The bank's total capital ratio stood at 22.8%, well above regulatory thresholds, indicating a strong capital position.

• The Consumer Bank segment saw a 9% quarter-on-quarter increase in top-line growth, particularly in Wealth Management, which also experienced a 2% increase in clients.

• The bank maintained strong cost discipline, achieving the lowest expense figure in the last four quarters, with a cost-income ratio of 32%.

Negative Points

• The Institutional Banking segment experienced a 5% decrease in revenue quarter-over-quarter, primarily due to lower trading results.

• The Consumer Bank's FX volumes saw a slight decrease, attributed to small ticket transactions and a lack of retail investment activity.

• Net fee and commission income decreased by 5% quarter-over-quarter, influenced by seasonality and the absence of one-off events.

• The treasury segment reported a 6% decrease in net interest income quarter-over-quarter, impacted by a lower balance sheet due to dividend payouts.

• There was a slight decrease in domestic transaction value on cards, down by 2%, although cross-border transaction value increased.