March 23, 2020 / 8:18 AM / in 2 months

BRIEF-PKO BP Sees 75-100 Mln Zloty Quarterly Hit On Net Result After Rates Cut

March 23 (Reuters) - Powszechna Kasa Oszczednosci Bank Polski SA:

* SAID ON FRIDAY DUE TO NEGATIVE IMPACT OF CORONAVIRUS ON BUSINESS ACTIVITY BANK EXPECTS REDUCED CUSTOMER ACTIVITY, DETERIORATION IN THEIR FINANCIAL STANDING AND LOWER SALES OF FINANCIAL PRODUCTS

* DECISION BY MONETARY POLICY COUNCIL (RPP) TO LOWER INTEREST RATES AND CHANGE MINIMUM RESERVE REQUIREMENT TO NEGATIVELY IMPACT GROUP’S NET RESULT AT LEVEL OF 75 - 100 MILLION ZLOTYS QUARTERLY, MATERIALISE GRADUALLY IN FOLLOWING QUARTERS

* DECISION BY MINISTRY OF FINANCE TO RESET SYSTEMIC RISK BUFFER RESULTS IN 2.9 P.P. REDUCTION OF CAPITAL REQUIREMENTS AT CONSOLIDATED LEVEL

* WEAKENING OF ZLOTY MAY NEGATIVELY AFFECT COST OF LEGAL RISK OF CURRENCY HOUSING LOANS, SCALE OF IMPACT IS CURRENTLY DIFFICULT TO ESTIMATE RELIABLY

* BANK IS MAINTAINING OPERATIONAL CONTINUITY INCLUDING CUSTOMER SERVICE AT ITS BRANCH NETWORK AND REMOTE CHANNELS

* GROUP IS MAINTAINING GOOD LIQUIDITY AND CAPITAL SITUATION

* IS SEEING INCREASED USE OF REMOTE CHANNELS BY CUSTOMERS

* SEES ACTIONS TAKEN BY NATIONAL BANK OF POLAND (NBP) REGARDING PURCHASING TREASURY BONDS, PROMISSORY NOTE LOAN AND REPO OPERATIONS WILL ADDITIONALLY STRENGTHEN GROUP’S LIQUIDITY

* GROUP IS OFFERING SUSPENSION FOR DEBT SERVICE FOR 3-6 MONTHS TO SOME CLIENTS

* EXPECTS INCREASED RISK COSTS, THE SCALE OF WHICH IS CURRENTLY DIFFICULT TO ESTIMATE RELIABLY

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Further company coverage: (Gdansk Newsroom)

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