A very good quarter: PLN 171 million of pre-tax profit, income up by 11.2% QoQ. 103.5 thousand new retail and almost 250 new corporate clients put their confidence in BRE Bank. Growth in the loan portfolio.
As planned, in Q2, the Bank raised almost PLN 2 billion in a shares issue with pre-emptive rights. This helped to strengthen BRE's position as the third largest bank in Poland. Following the first six months of 2010, the pro forma capital adequacy ratio (including rights issue proceeds) accounted for 15.45%.
It was yet another quarter when BRE Bank proved to be a very effective institution. The cost-to-income ratio is down to 51.2%, which places us among the market leaders, explains Wiesław Thor. This was mainly due to a 11.2% QoQ rise in income reported in Q2. Net interest income improved by 11.7% QoQ and reached PLN 436.3 million, while net fees and commission remained almost unchanged at the high level of PLN 172.4 million. Costs increased by 10.6% driven by business growth.
The total gross loans grew by 9.2% in Q2 in comparison to Q1. In retail banking a new loan sales surged by 84% as far as mortgage loans are concerned and by 46% in the case of non-mortgage loans, stresses Wiesław Thor. In turn, the deposit base fell slightly by 1%.
In Q2, we continued to implement the new strategy introduced to investors on 1 March 2010. Back then, we announced a focus on entering the public sector withfinancing of local governments and during the last few months our market shares in this segment rose to 1.2% in loans and 2.1% in deposits, says Wiesław Thor.
Best corporate banking
The Bank's offer has been appreciated by experts: BRE won in as many as four categories of the "World Best Internet Banks 2010" contest organised by the Global Finance magazine, including the most important corporate banking category: Best Corporate/Institutional Internet Bank.