Bank Handlowy w Warszawie S A : Good performance of Citi Handlowy in Q2 2022

30th August 2022
Good performance of Citi Handlowy in Q2 2022

In Q2, net income of Citi Handlowy amounted to PLN 500 million. As compared to the prior year, the bank reported higher revenue and an increase in client assets in institutional banking, in particular in the Commercial Bank and global clients segments. The number of Citi Private Clients reached a record-high. At the bank level, the volume of loans increased by 7% YoY, and deposits grew by 6%.

"Our earnings reflect growth in strategic areas of our business. This is particularly visible in the increase in assets of our commercial bank and in high FX volumes. We actively support green transformation of our clients, which is reflected in the closed transactions. This was also a very good quarter for Citi Handlowy Private Clients segment," said Chief Executive Officer Elżbieta Czetwertyńska. "The following months will not be easy for our clients or for the economy. We will work closely with our clients to help them navigate this difficult time."

Revenues amounted to PLN 1 billion (+141% YoY). The bank achieved a high growth dynamic in FX volumes (+12% YoY), and ROE of 14.8%, more than twice the number recorded at the end of June 2021. Client assets in institutional banking increased by 15% YoY. Especially strong increases (+38% YoY) were recorded in the Commercial Bank segment (companies with turnover from PLN 15 million to PLN 2 billion).

"Strong trends visible this quarter include increased client activity, a strong interest income, very good quality loan portfolio and high cost discipline despite growing inflation. A high return on equity of 14.8%, which results from a solid net profit and a stable capital base, as well as the total capital ratio much above the regulatory requirements are, without a doubt, a crucial factor for investors and for the bank's strategy," said Chief Financial Officer Natalia Bożek.

Citi Handlowy once again supported the dynamic development plans of Netguru, a Polish tech company. This time the bank helped in the takeover of mohi.to, a company which specializes in providing e-commerce solutions. The bank previously supported the company's investment in a US firm, Pilot 44. Citi Handlowy was also the bank providing funding in a deal to buy the shares in Rotometal, one of the largest manufacturers of magnetic and printing cylinders in Europe.

The bank is actively implementing its strategy of supporting customers in transforming their business models towards more sustainable ones, and the incorporation of environmental and social factors in the decision-making process. Cooperation with Żabka follows this strategy - the two companies signed a financing agreement linked to Żabka's ESG goals: reduction of greenhouse gas emissions and increased sales of healthy foods. Citi Handlowy is planning to grant PLN 1 billion in "green financing" to its clients over the next 3 years, and has already achieved a quarter of this goal.

In Consumer Bank, the second quarter was the best period ever- the number of Citigold Private Clients reached a historical high. The bank almost doubled its portfolio of CitiKonto clients, and the credit card of Citi Handlowy "Citibank-BP Motokarta" was recognized, for the 7th consecutive time, as the best product in the market in its category.

Financial highlights for Q2 (YoY):

• Net profit of PLN 500 million (versus PLN 73 million in 2Q 2021)
• ROE of 14.8% (vs. 7.2% in Q2 2021)
• Loan to deposit ratio of 48%
• Total capital ratio (TCR) of 17.7%

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