March 26, 2020 / 7:56 AM / 9 days ago

BRIEF-Bank Pekao Says Rate Cuts Will Hit Net Result By About 200-250 Mln Zlotys

March 26 (Reuters) - Bank Pekao SA:

* SAID ON WEDNESDAY DECISIONS BY CENTRAL BANKS TO LOWER INTEREST RATES, PARTICULARLY BY POLAND’S MONETARY POLICY COUNCIL (RPP), WILL LOWER GROUP’S NET RESULT IN 2020 BY ABOUT 200-250 MILLION ZLOTYS

* IMPACT ON NET RESULT IS DUE TO LOWERING OF INTEREST MARGIN BY 15 BASE POINTS AND WILL MATERIALISE GRADUALLY IN FOLLOWING QUARTERS

* ASSUMES THAT DUE TO CORONAVIRUS EPIDEMIC BUSINESS ACTIVITY IN POLAND AND ABROAD MAY BE REDUCED, CONTRIBUTING TO LOWERING OF ACTIVITIES OF PRIVATE AND CORPORATE CLIENTS INCLUDING OF THOSE ACTIVE IN INTERNATIONAL MARKETS

* LOWER ACTIVITY WOULD CONTRIBUTE TO LOWER FINANCIAL PRODUCT SALES DYNAMICS FOR THE BANK AND GROUP

* EXPECTS DETERIORATION IN FINANCIAL STANDING AND LIQUIDITY OF PART OF CLIENTS AND RESULTING RISK COST GROWTH FOR GROUP

* NEGATIVE FACTORS WILL LOWER NET RESULT AND RELATED FINANCIAL INDICATORS

* IS CURRENTLY NOT RECORDING IMPACT OF CORONAVIRUS EPIDEMIC ON FINANCIAL LIQUIDITY AND ADEQUACY

* THE BANK AND GROUP ARE MAINTAINING FULL OPERATIONAL CONTINUITY

* THE BANK IS IN A GOOD CAPITAL AND LIQUIDITY POSITION AT BOTH STANDALONE AND CONSOLIDATED LEVEL, FAR EXCEEDING MINIMUM REGULATORY LEVELS

* SEES POSITIVE IMPACT FOR BANK AND SECTOR FROM POLAND’S CENTRAL BANK’S (NBP) PACKAGE AIMED AT MAITAINING LIQUIDITY OF FINANCIAL MARKETS AND BANKS

* MINIMUM CAPITAL REQUIREMENTS FOR BANK AND GROUP HAVE BEEN LOWERED BY 2.9 P.P. FOLLOWING POLAND’S FINANCE MINISTER TO RELEASE SYSTEMIC RISK BUFFER

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Further company coverage: (Gdansk Newsroom)

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