Idea Bank adopts a new business model

  • In 3Q 2018, Idea Bank reported a consolidated loss of PLN 32.6 million. This is related, among other things, to a change in the scale and structure of sales of both credit and investment products. This was reflected in lower current commission income, but greater future repeatability and lower fluctuation amplitude. This very important and positive change of business model is related temporarily to net costs, as a fall in commission income is not compensated by a reduction in commission costs in the initial phase. Current credit facility sales are dominated by our own products, with relatively high margins and an acceptable cost risk. The new sales activities are supported by a new behavioural model recently introduced, which enables better risk control. The Bank is also paying great attention to controlling costs, which rose slightly by 2% on a y/y and Q3/Q2 basis.
  • Within the measures taken to strengthen capital ratios, the Bank started a process to optimise the balance sheet total, which will continue into subsequent quarters. These measures, combined with a planned increase in equity, should help strengthen the Bank’s capital position, which – in addition to the change of business model – is the current priority of the Bank’s Management Board.
  • Idea Bank is continuing its analysis of a potential merger with Getin Noble Bank.
  • As regards the current media situation, Jerzy Pruski, acting president of the Idea Bank Management Board, said:

    “The public debate with which we have been dealing since 13 November has no connection whatsoever with Idea Bank’s current activities. Despite this, the media hype – understandable in the context of the events that initiated it – has hit our Bank, and its image and brand. I wish to assure our clients and shareholders that we have taken all the required steps to protect Idea Bank against the effects of the turmoil on the Polish financial market and that all client transactions have been and are carried out without any disruption.”