This rating is mainly formulated due to Bank Pekao’s acquisition of the certain liabilities and assets of Idea Bank S.A, which had a minimal effect on the institution’s credit profile. The Bank’s Baseline Credit Assessment was also downgraded while the Adjusted Baseline Credit Assessment from “baa1” to “baa2” and the Bank’s Counterparty Risk Assessment was downgraded from “A1(cr)” to “A2(cr)”. The bank is required to maintain the “P-1” short-term deposit rating and “A2” on the long-term one, as well as a stable outlook on the long-term deposits (Bank Pekao, 2022). With the pandemic, there has been a high level of uncertainty which has very little effect on the bank’s overall risk as it has strategically implemented the digitalization process. Viability Rating was affirmed at ‘bbb+’which is highly attributed to downside risk, contributing to the institution’s overall credit profile (Bank Pekao, n.d.). Most big banks have a low-efficiency ratio because they generate more non-interest income.Īs of September 2021, Bank Pekao S.A. uses this to analyze how well its operations costs generate revenue. Efficiency Ratios indicate the bank’s internal resources performance. Therefore, Bank Pekao S.A., on the CAMELS rating analysis, can be scaled at two, which means that it is financially sound and has moderate weaknesses. Whereas some of its weaknesses include the state being biased, whereby it supported ING Bank Slaski, Bank Pekao’s competitor, by offering it pension assets (Kozar, Ł.J., 2022, p.338). Another Strength the bank has majored in is its diversification of currencies, whereby the foreign transfers can be executed in twenty different currencies, thus increasing market scope. This indicates that the bank is not sensitive to market risks (Global Data, 2022). With Bank Pekao’s strategic plan to offer cross-border solutions to its clients, it has set up International Clients Office that helps provide these services, acting as one of its strengths in delivering liquid capital to meet the present and future cash flow. Compared to its peers in Poland, Bank Pekao is uniquely placed as it launched a brokerage house and made practical biometrics technology in the banking industry, contributing heavily to the bank’s assets quality and investment policies. This has increased the bank’s capital adequacy by continually meeting the minimum capital reserve amount. Bank Pekao SA has always stood as a pioneer in modern banking as it was the first bank to launch ATM banking systems, therefore, being the first bank to issue credit cards to its customers in Poland (Global Data, 2022). The management’s capability has been demonstrated by the bank’s ability to the management team to identify financial stress since 1929. Through the bank’s help, its customers have had access to foreign currency accounts since 1971, indicating earnings stability and return on assets. As mentioned earlier, the bank’s principal purpose after being started was to provide financial support to emigrants (Bank Pekao, n.d.). Performance AnalysisĪ Uniform Financial Institution Rating system, also known as CAMEL (Capital Adequacy, Assets, Management, Earnings, Liquidity, Sensitivity) rating system, is one of the best tools to identify the financial strengths and weaknesses of a bank (Gołosz, 2022). In Appendix A, table 1 shows the products and services table 2 Personal Banking and Business Banking Products table 3 Peer analysis table 4 Competitor Comparison. The process of acquiring Bank Pekao S.A shares was completed on 7th June 2017 by Owszechny Zaklad and the Polish Development Fund. include mBank SA, Bank Millenium SA, ING Bank Slaski SA, and PKO Bank Polski. The bank offers various services, including account banking services, insurance, mortgage, card, and services to businesses and investors (Bank Pekao, n.d.). is still ranked second among national banks. In other countries, such as Brazil, the war outbreak brought a halt to further development (Global Data, 2022). From 1929 to 1939, Bank Pekao established various offices in countries such as Palestine, the United States of America, Argentina, and Germany to launch branches. was established in Poland, and its headquarters is located in Poland’s capital Warsaw (Bank Pekao, 2022). Powszechna Kasa Oszczędności Bank Polski S.A.Īll corporate names ended with "Oddział w Polsce".Ĭhina Construction Bank (Europe) S.A.On 17th March 1929, Bank Pekao S. This is a list of banks operating in Poland, based on supervisory by Polish Financial Supervision Authority (Komisja Nadzoru Finansowego) and/or member of Polish Bank Association (Związek Banków Polskich) Development bank Ĭommercial and retail banks Full name
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