1st Aug 2008 08:06
UNOFFICIAL TRANSLATION
(August 1, 2008)
Report 69/2008: Forecast of Bank Pekao S.A.'s financial results in years 2008-2010
Management Board of Bank Polska Kasa Opieki S.A. ("Bank") hereby informs that in accordance with the Strategic Plan for years 2008-2010, the Bank plans to achieve following targets on the end of year 2010:
Return on equity (ROE) on the level above 25%,
Cost income ratio on the level below 40%,
Cost of risk ratio - ca. 0,5%,
CAGR of revenues in years 2007-2010 - ca. 10%,
Value of EVA (Economic Value Added) in year 2010 at level ca. 4 bln, CAGR of EVA in years 2007-2010 - ca. 14%,
CAGR of RWA (Risk-Weighted Assets) in years 2007-2010 - ca 9%.
This forecast is based on expected results of further improvement of profitability, efficiency and improved quality of customer's services. Forecast assumes following macroeconomic scenario:
- economic growth rate not lower than 4.7% in year 2010,
- inflation rate reduction up to 2.3% in year 2010,
- WIBOR 4.9% in year 2010,
which will positively influence expected compound annual growth rate in years 2007-2010 of selected basic aggregate items of banking sector in Poland, like:
- total savings 8.1%,
- deposits 7.2%,
- mutual funds 11.2%,
- total loans 12.9%.
The above mentioned data included in the forecast will be verified annually, and it will be published simultaneously with the release of 4th quarter financial results of every consecutive financial year. The basic criterion of the forecast execution assessment will be evaluation of principal financial targets fulfilment, which have been described in the Strategic Plan for years 2008-2010.
Legal basis: Section 5, Subsection 1, Clause 25 of the Ordinance of the Minister of Finance on Current and Periodical Information Submitted by the Issuers of Securities of 19 October 2005.
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