4Q16 – small beat on lower provision charges; key revenue lines uninspiring
Pekao has posted net profit of PLN 495m for 4Q16 (-5% qoq, +13% yoy), 2% above our expectations and 3% above the market consensus. The beat vs. our forecasts came from: i) lower provision charges than we had expected (-21% qoq, -12% yoy); ii) a higher F&C result (+2% qoq, -1% yoy); and iii) slightly higher NII (flat qoq, +5% yoy). Overall, we read the results as neutral. We appreciate the lower provision charges, but the core revenues are uninspiring, especially when we look at the results reported by the other Polish banks so far. The NII remained flat, while the improvement in the F&C result was insignificant on a quarterly basis. On the other hand, banks such ING and MBK delivered impressive growth in fees and commissions in 4Q16, and stronger NII growth (BZW in particular).
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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