WSE:BHW

Stock Analysis Report

Bank Handlowy w Warszawie

Executive Summary

Bank Handlowy w Warszawie S.A. provides a range of banking services for individual and corporate clients in Poland and internationally.

Snowflake

Fundamentals

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Bank Handlowy w Warszawie's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.0%

WSE:BHW

-1.9%

PL Banks

-2.6%

PL Market


1 Year Return

-29.0%

WSE:BHW

-9.4%

PL Banks

-8.1%

PL Market

BHW underperformed the Banks industry which returned -9.4% over the past year.

BHW underperformed the Market in Poland which returned -8.2% over the past year.


Share holder returns

BHWIndustryMarket
7 Day-1.0%-1.9%-2.6%
30 Day-5.6%-11.2%-9.3%
90 Day-3.8%-7.0%-5.3%
1 Year-23.9%-29.0%-6.3%-9.4%-5.3%-8.1%
3 Year-13.6%-28.5%12.7%4.3%7.8%-0.1%
5 Year-38.6%-56.0%-13.8%-24.6%-1.8%-14.4%

Price Volatility Vs. Market

How volatile is Bank Handlowy w Warszawie's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bank Handlowy w Warszawie undervalued based on future cash flows and its price relative to the stock market?

11.97x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Bank Handlowy w Warszawie's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Bank Handlowy w Warszawie's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Bank Handlowy w Warszawie is overvalued based on earnings compared to the PL Banks industry average.

Bank Handlowy w Warszawie is overvalued based on earnings compared to the Poland market.


Price Based on Expected Growth

Bank Handlowy w Warszawie is poor value based on expected growth next year.


Price Based on Value of Assets

Bank Handlowy w Warszawie is overvalued based on assets compared to the PL Banks industry average.


Next Steps

Future Growth

How is Bank Handlowy w Warszawie expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bank Handlowy w Warszawie's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

Bank Handlowy w Warszawie's earnings are expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).

Bank Handlowy w Warszawie's revenue growth is positive but not above the Poland market average.

Bank Handlowy w Warszawie's earnings growth is positive but not above the Poland market average.

Bank Handlowy w Warszawie's earnings growth is expected to exceed the low risk savings rate of 2.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Bank Handlowy w Warszawie is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Bank Handlowy w Warszawie performed over the past 5 years?

-10.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bank Handlowy w Warszawie's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Bank Handlowy w Warszawie's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Bank Handlowy w Warszawie's 1-year earnings growth is negative, it can't be compared to the PL Banks industry average.


Return on Equity

Bank Handlowy w Warszawie has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Bank Handlowy w Warszawie used its assets more efficiently than the PL Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Bank Handlowy w Warszawie improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Bank Handlowy w Warszawie's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Bank Handlowy w Warszawie has an acceptable proportion of non-loan assets held.

Bank Handlowy w Warszawie has a low allowance for bad loans.

Bank Handlowy w Warszawie's liabilities are made up of primarily low risk sources of funding.

Bank Handlowy w Warszawie's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Bank Handlowy w Warszawie are broadly funded by customer deposits.

Bank Handlowy w Warszawie has a high level of bad loans (greater than 2%).


Next Steps

Dividend

What is Bank Handlowy w Warszawie's current dividend yield, its reliability and sustainability?

7.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Bank Handlowy w Warszawie's pays a higher dividend yield than the bottom 25% of dividend payers in Poland (2.91%).

Bank Handlowy w Warszawie's dividend is above the markets top 25% of dividend payers in Poland (7.33%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

What is the CEO of Bank Handlowy w Warszawie's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Slawomir Sikora (57yo)

zł3,394,000

Compensation

Mr. Slawomir S. Sikora has been Chief Executive Officer of Citibank Handlowy of Citigroup Inc. since March 1, 2005 and serves as its President & Citi Country Officer of Citi Handlowy. Mr. Sikora is respons ...


CEO Compensation Analysis

Slawomir's remuneration is higher than average for companies of similar size in Poland.

Slawomir's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

3.8yrs

Average Tenure

The tenure for the Bank Handlowy w Warszawie management team is about average.


Board Age and Tenure

5.1yrs

Average Tenure

69yo

Average Age

The tenure for the Bank Handlowy w Warszawie board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Slawomir Sikora (57yo)

    President of Management Board & COO

    • Compensation: PLN3.39m
  • David Mouille

    Vice President of Management Board

    • Tenure: 4.0yrs
    • Compensation: PLN2.73m
  • Barbara Sobala

    Vice President of Management Board

    • Tenure: 5.8yrs
    • Compensation: PLN1.06m
  • Maciej Kropidlowski

    Vice President of Management Board

    • Tenure: 5.4yrs
    • Compensation: PLN2.13m
  • Katarzyna Majewska

    Member of Management Board

    • Tenure: 3.6yrs
    • Compensation: PLN1.05m
  • Katarzyna Otko-Dabrowska

    Investor Relations Director

  • Natalia Bozek

    Vice President of Management Board

    • Tenure: 1.4yrs
    • Compensation: PLN2.79m
  • James Foley

    Member of Management Board

    • Tenure: 0.5yrs

Board Members

  • Frank Mannion

    Deputy Chairman of the Supervisory Board

    • Tenure: 2.6yrs
  • Igor Chalupec (53yo)

    Supervisory Board Member

    • Tenure: 10.2yrs
  • Stephen Volk (82yo)

    Supervisory Board Member

    • Tenure: 9.8yrs
  • Miroslaw Gryszka

    Supervisory Board Member

    • Tenure: 0.1yrs
  • Selva Selvakesari

    Supervisory Board Member

    • Tenure: 3.2yrs
  • Anna Rulkiewicz

    Supervisory Board Member

    • Tenure: 0.2yrs
  • Andrzej Olechowski (72yo)

    Supervisory Board Chairman

    • Tenure: 7.1yrs
  • Shirish Apte (66yo)

    Supervisory Board Member

    • Tenure: 16.2yrs
  • Jenny Grey

    Supervisory Board Member

    • Tenure: 3.2yrs
  • Stanislaw Soltysinski

    Supervisory Board Member

    • Tenure: 22.4yrs

Company Information

Bank Handlowy w Warszawie S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bank Handlowy w Warszawie S.A.
  • Ticker: BHW
  • Exchange: WSE
  • Founded: 1870
  • Industry: diversified banks
  • Sector: banks
  • Market Cap: zł6.611b
  • Shares outstanding: 130.66m
  • Website: Click here

Number of Employees


Location

  • Bank Handlowy w Warszawie S.A.
  • ul. Senatorska 16
  • Warsaw
  • 00-923
  • Poland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BHWWSE (Warsaw Stock Exchange)YesCommon Bearer SharesPLPLNJul 1997
0DOSLSE (London Stock Exchange)YesCommon Bearer SharesGBPLNJul 1997

Biography

Bank Handlowy w Warszawie S.A. provides a range of banking services for individual and corporate clients in Poland and internationally. The company operates through two segments, Institutional Bank and Con ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 20:43
End of Day Share Price2019/08/16 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.