Semi-Annual Report of PKO BP (Poland)

     PKO BP is Poland's largest bank. 

    The net profit of the PKO BP group in the second quarter of 2018 increased to PLN 933 million from PLN 857 million a year earlier - the bank reported in a semi-annual report. The bank's profit was in line with market expectations.

    Net profit in the second quarter increased by 9 percent year-over-year and 23 percent qoq.

    In the first half of 2018, the net profit amounted to PLN 1690 million, ie it increased 22.3%. yoy. Net ROE is 9.5 percent.

    The bank's net interest income in the second quarter amounted to PLN 2291 million and was in line with analysts' expectations. The interest income increased by 8 percent yoy and 3 percent qoq.

    The total capital ratio of the PKO BP group is 17,4%, and Tier 1 capital ratio is 16.12%.

Order the full comment on the PKO BP report by clicking here ----> *X* 

PKO BP provides services to individual and business clients. The core business activity of PKO Bank Polski is retail banking.

Malaysia: Possible increase in deficit

     The Ministry of Finance of Malaysia wants to reduce GST to zero percent and re-introduce turnover tax to compensate for any revenue shortages. Rising oil prices - positive for net energy exporters, such as Malaysia - will also support revenues, officials said.

     But some analysts are not convinced.
     Combined with the fuel surcharges - promises made by the current administration - as well as high country foreign debt and low reserves, sales tax is not very comforting.
     We could look at Malaysia's fiscal deficit next year go as high as up to 4.3 percent of GDP, what would be a big increase from 2017  level at 3.0 percent.
     The degree of fiscal deterioration after the election is the main risk factor for foreign investment. And although it is still too early to draw any conclusions, it is in the hands of the government to take appropriate action for investors and rating agencies. 
    If GST was abolished "without adjustment measures", it would be negative for the country's credit, according to Moody's Investor Services.