In recent days he fell pale bankers fear came because of the Sejm changed at the last minute at the request of Democratic Left Alliance deputy Assistance Act for frankowiczów. It shows that banks should pay 90 per cent. loss of customers resulting from the rise in the franc. Polish Banks Association announced that his bosses want to meet with representatives of all parliamentary clubs and present risks resulting from load banks such costs.
The Financial Supervision Commission, the study prepared for the Senate bill estimates the cost of antyfrankowej for banks to 22 billion zł. Part of these costs will fall upon all taxpayers – without profit because the banks do not pay income tax. A year indulge in this way to the budget of 4 billion zł.
And what about the disclosure of the charges on Thursday appealed to his colleagues, bankers Slawomir Sikora, CEO of Citi Handlowy. In his opinion, the calculations show when it comes to the contribution of individual banks in the public finances (paid CIT, VAT, PIT or tax on dividends paid to shareholders), could help decision-makers and citizens to understand that the money is on the table and how much the state budget has to lose, if bankers screw screw it too.
President Sikora started from their bank and revealed that last year, Citi has paid to the state coffers 200 million zł income tax (within the last seven years – 1.4 billion zł) . But really contributed to the common treasury twice more, because apart from CIT also paid 51 million zł VAT zł 99 million personal income tax (on wages of employees) and 42 million zł tax on dividends. In total – 392 million zł.
– Presenting these numbers, we want to support substantively the ongoing debate about the current state and future of the economy, including banking, as well as bankers. I have a feeling that this may be an important voice in the ongoing debate today on the future of banks and their liabilities. We need specifics – numbers that are listed in a transparent manner would give scale sector involvement in the development of Polish – said Sikora.
Citi is growing, but less earns
Citi also published on Thursday results for the first half. Although earnings on interest (497 million zł) turned out to be almost a fifth lower than last year, while earnings on commissions fell by 4 per cent., The earnings from trading activities and reducing operating costs enough to Citi showed zł 367 million in pure earnings the first half. It is true that almost a third less than last year, but the bank managed by Slawomir Sikora still manages to maintain higher than the market average return on equity (ROE) – 12.4 percent. – And a very good quality of the loan portfolio – 4.7 percent. (Absolute lead throughout the banking industry).
Citi, even though the company for several years, the strategy of focusing exclusively on servicing premium customers in large cities (which, inevitably, caused a decrease in the number of customers), within the loan portfolio increased both corporate clients (in this increase was minimal, to 11.5 billion zł) and individual (from 5.6 to 6 billion zł). This increases less than the market average, but the bank indexing crossover when it comes to strategy implemented, could expect much trouble. When it comes to deposits, the results are inconclusive, because declining value of money deposited by customers on term deposits, but at least rising sludge on current accounts.
Citi has a very interesting structure of commission income – up to half the money earned from commissions on investment products and insurance (supports wealthy clients, who helps invest money in the market), and another 40 percent. – With credit cards (once Citi was the “plastic” hegemon, and even today his cards represent for many customers synonym of prestige). In the latter area, however, it can be seen revenues slump by as much as one-quarter – is of course due to the Act on the reduction of interchange fees.
Black clouds over banks
President Sikora also calculated a cost approaching clouds over the banking sector in the coming years. In his opinion, the annual low interest rates will “cost” banks in the form of a smaller percentage of approx. 3 billion zł, the possible introduction Assistance Act frankowiczom – 22 billion zł (here just Citi would not be affected because they never gave the foreign currency loans to individuals ) bank tax – 6 billion zł and higher contributions to the Bank Guarantee Fund – 12 billion zł on a scale of two years. In total, the bankers have to reckon with the need to be delivered within the next two years … 46 billion zł.
– Before the banking sector faces further challenges. I have a feeling that their impact on Citi will be relatively lower than in the entire sector, among others, thanks to a strategic decision that we made several years ago not to get involved in the mortgage loan market. Plan to increase bank levy or contemplated changes in the BFG at this moment are born small risk when it comes to our business, compared to their impact on the entire banking sector – reassured shareholders of the bank president Sikora.
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