1 Jun 2020 07:00
UNOFFICIAL TRANSLATION
29.05.2020 - Report 36/2020: The update with regards to impact of the coronavirus COVID-19 epidemic on financial results of Bank Polska Kasa Opieki S.A. and its capital group
In reference to the current report No. 9/2020 dated 25 March 2020 and to the current report No. 22/2020 dated 30 April 2020, Bank Polska Kasa Opieki Spółka Akcyjna (the "Bank") hereby provides an update with regards to impact of the coronavirus COVID-19 epidemic on financial results of the Bank and its capital group (the "Group").
As referenced in the abovementioned current reports, one of the factors that will have a significant impact on the financial results of the Bank and the Group in 2020 have been recent decisions of central banks to reduce interest rates. In particular, the significant impact carry decisions of the Monetary Policy Council in Poland to reduce the reference rate on 17 March 2020, 8 April 2020 and 28 May 2020 (by 140 basis points combined to the level of 0.1%). These three decisions to reduce interest rates will jointly lower the net financial result of the Group in 2020 by about PLN 650-700 million as a result of lowering the interest margin by about 45 basis points. The precise impact of the abovementioned decisions on the financial results will depend on the shape of yield curve as well as on the implementation of business plan assumed by the Group
The Bank indicates that the above assessment of the impact of the COVID-19 coronavirus epidemic on financial results of the Bank and the Group has been based on the best knowledge of the Bank as at the date of publication of this current report. The Bank will present updated information on the impact of the coronavirus COVID-19 epidemic on the financial results of the Bank and Group in the interim report for the second quarter of 2020.
Legal basis:
Article 17 (1) MAR - inside information