Bank on the WSE

As at 31 December 2020, there were two shareholders with at least 5% of the total number of votes at the General Shareholders’ Meeting: BNP Paribas and BNP Paribas Fortis SA/NV, jointly holding 88.76% of votes. The remaining part of the Bank’s shares (11.24%) is in free float.

In 2020, there were no changes in the Bank’s shareholder structure.

The Bank’s shares have been listed on the Warsaw Stock Exchange since 27 May 2011 (IPO of Bank Gospodarki Żywnościowej S.A.).

The Bank’s shares to which ISIN code PLBGZ0000010 has been assigned are listed on the Main Market of Warsaw Stock Exchange (WSE) under the abbreviated name of BNPPPL, marked BNP.

Since 23 September 2019, the shares are included in mWIG40 and mWIG40TR indices and since 21 September 2020 in WIG-ESG index.

As declared by BNP Paribas SA – the main Bank’s shareholder – to the Polish Financial Supervision Authority on 14 September 2018, the number of the Bank’s shares that are in free float should have been increased to at least 25% plus one share by the end of 2023, at the latest.

Key shareholder of the Bank is leading international banking group BNP Paribas, which operates in the following key areas:

The BNP Paribas Group supports its Clients (retail Customers, local authorities, entrepreneurs, SME, corporate Customers and institutions) in the implementation of various projects, offering a broad range of financial, investment and savings products along with insurance.

BNP Paribas Group operates on four European domestic markets (Belgium, France, Italy, and Luxembourg) and is a leader regarding consumer loans (BNP Paribas Personal Finance). The BNP Paribas Group develops its model of integrated retail banking in Mediterranean countries, Turkey, Eastern Europe and through a well-developed branch network in western United States. In Corporate and Institutional Banking and International Financial Services, BNP Paribas is also among European leaders, holds a strong position in the Americas and has seen a fast growth in the Asia-Pacific region.

During the session on 30 December 2020, the share closing price amounted to PLN 63.60 and was 6.47% lower than on 30 December 2019. In the same period, the WIG Banks index fell by 29.59%. The main reason was the development of the coronavirus pandemic, freezing the economy and concerns about the necessity of making reserves and deterioration of Banks’ results related to it. A significant decrease of share prices occurred in mid-March 2020 (on 10 March 2020 the share price was PLN 60.40, on 20 March 2020 it was PLN 48.00). The second and third quarter did not bring any improvement and an annual minimum was observed on 30 October (PLN 33.10), following an increase in the number of coronavirus cases and the uncertainty regarding the scale and duration of introduced sanitary restrictions. A durable reverse of the trend came in November and lasted until the end of the year. It almost allowed the Bank to recover from the losses, unlike the industry index, which closed the year at nearly a third lower than at the end of last year.

A relatively better development of the Bank’s share price was positively influenced by a consistent implementation of the strategy and visible in 2020 increase of financial results, made possible by a successful integration with Core Business of Raiffeisen Bank Polska S.A. and adjustment measures aimed at neutralizing the negative impact of the coronavirus pandemic on the Bank’s results.

While in the first quarter of 2020 an average daily share price remained on a relatively high level (PLN 66.24), the second quarter brought a noticeable decrease of an average share price (to PLN 49.87) and in the third quarter that decrease deepened (PLN 46.13). October was the worst month with an average price of PLN 38.12. An increase of share price in November and October allowed a slight increase of quarterly average to PLN 46.49.

Average daily volumes of trading in the first, second and third quarter of 2020 reamined at a relatively low level (2,258.25 shares, 2,079.48 shares and 2,473.15 shares respectively). Combined with a noticeable decrease of an average share price in the second quarter of 2020, it was also reflected in changes of an average daily value of trading, which in the first three quarters of 2020 amounted to, respectively: PLN 145.09 thousand, PLN 104.98 thousand and 109.46 thousand. During the session on 18 September 2020 an annual maximum of trading volume (84,909 shares) and value of trading (PLN 3,582.45 thousand) were observed. A reverse of the negative trend recorded in the fourth quarter of 2020 brought a rebound of an average daily volume of trading to 5,784.13 shares and an average daile value of trading to PLN 261.45 thousand.

Despite share prices’ slump, reflected in the decrease of the Bank’s average daily share price from PLN 58.90 in 2019 to PLN 52.23 in 2020; there was a noticeable growth of investors’ interest, which translated into the growth of an average daily volume of trading by 70.07% and an average daily value of trading of the Bank’s shares by 31.86% (from 1,860.55 shares and PLN 118.26 thousand in 2019 to 3,164.17 shares and PLN 155.94 thousand in 2020 respectively).

On 5 May 2020 Moody’s Investors Service Ltd. (“the Agency”) made an updated assessment of the Bank as a result of which it maintained the long-term deposit rating of the Bank at Baa1 while changing the outlook from positive to stable. This change is due to the appearance of the COVID-19 epidemic risks. The short-term deposit rating was maintained at Prime-2.

Due to the systematic improvement of the Bank’s financial the basic BCA (Baseline Credit Assessment) was maintained at ba1 level. The Adjusted Baseline Credit Assessment and Counterparty Risk Assessments were maintained at their current levels (baa3 and A3(cr)/Prime-2(cr) respectively).

A positive assessment of the Bank’s financial standing results from:

• improving profitability and operations efficiency,
• moderate level of credit risk and strengthening of the equity situation,
• financing assets with funds from the outside of the interbank market,
• high level of liquid assets,
• optimization of funding costs.

The Bank’s rating was maintained following the Agency’s analysis in the fourth quarter of 2020. The credit opinion report and rating was published by the Agency on 15 December 2020.

The macroeconomic situation in Poland, despite the COVID-19 pandemic, has a positive impact on maintaining Bank’s assessment.

BNP Paribas Bank Polska S.A. pursues a transparent information policy to ensure high communication standards taking into account information needs of capital market participants.

When providing information, the Bank, as a public company and a supervised institution, follows the corporate governance rules, in compliance with the binding provisions of law, and provides capital market participants with equal access to information about the current activity of the company, its activities or its financial results, fulfilling information obligations in a manner that enables a reliable valuation of the Bank’s shares.

A dedicated organisational unit in the Bank – the Investor Relations Bureau – is responsible for relations with shareholders, investors and other capital market participants. Relevant information for investors, Bank shareholders and analysts is available on a dedicated Investor Relations website https://www.bnpparibas.pl/investor-relations.

In 2020, the Bank published a digital version of its annual report for 2019 for the first time. The report under the motto “Bank of Green Changes” is available on the website: http://raportroczny.bnpparibas.pl/2019/en/

In 2020, recommendations for BNP Paribas Bank Polska shares were issued by 8 domestic financial institutions. At the end of 2020, the Bank had 8 recommendations, of which 4 “Buy”, 1 “Accumulate” and 3 “Hold”. The median of target prices from the recommendations amounted to PLN 63.2, i.e. it was lower than the share price as at 30 December 2020 (PLN 63.6) by 0.6%.