Banking sector on WSE

Banks in PZU Group

Due to PZU’s strong involvement in the banking sector (see more), the situation of banks on WSE turned into a material factor which may determine the assessment of PZU on the stock exchange.

Banks on WSE in 2016

*Theoretical value of pre-emptive rights

WIG Banks¹

WIG Banks rose at the end of 2016 by 2.9% year-on-year. The total weight of Pekao and Alior Bank in the portfolio of said index reached approximately 32.0%.

In 2016, low interest rates, bank tax, mortgage credit requirements, and geopolitical risk caused the ratings of banks to stay under the pressure of the demand segment of the market. Regardless, the WIG Banks rose at the end of 2016 by 2.9% year-on-year (the total weight of Pekao and Alior Bank in the portfolio of said index reached approximately 32.0%).

In 2016, the assessment of Bank Pekao had a negative effect on WIG Banks. At the last session of 2016, the price of the Bank shares was PLN 125.8, down by 12.3% year-on-year. However, from the perspective of the concluded agreement, assuming the price of PLN 123, which will be paid by PZU to UniCredit for Pekao shares (see more), the assessment of the negotiated package (20% in the Bank’s capital) rose by 2.3% (i.e. PLN 147.0 million) at the end of 2016.

Analyses of Alior Bank share prices in 2016 should recognize the issue of shares (for the purposes of purchasing the basic activity of Bank BPH). From the technical point of view, the transaction had a direct impact on the quotation of shares on WSE, i.e. the „Theoretical Value of Pre-Emptive Right²” in the amount of PLN 12.4 per share was cut from the shares of Alior Bank on 19 May 2016. After the adjustment of the historical price with the cut value, the annual rate of return on Alior Bank shares was -0.1%.

1 Total return index (during its calculation both the prices of shares included in the index and the income from dividend and pre-emptive right is taken into account)
2 https://www.gpw.pl/prawa_poboru_instrumenty