By Mateusz Rabiega
GDANSK (Reuters) -PZU could significantly exceed its 2024 revenue goal of 28 billion zlotys ($7.11 billion), CFO Tomasz Kulik said on Thursday after Poland's biggest insurer beat forecasts with record annual profit.
The insurer profited in 2023 from a threefold rise in earnings from banking activity that added nearly two billion zlotys to last year's results. The boost was supported by high interest rates that led to record profits for Alior Bank and doubled fourth-quarter profit for Pekao, lenders in which PZU holds stakes.
Kulik said there were still uncertainties concerning interest rate cuts and new costs associated with a mortgage moratoria scheme, which could diminish this year's contribution from its banking business.
PZU reported profit of 5.77 billion zlotys ($1.46 billion), beating an analysts' forecast of 4.67 billion zlotys in a company-compiled consensus. The annual gross insurance revenue grew 8.6% to 26.87 billion zlotys, boosted by growth in insurance, and banking segments.
"We see the possibility to significantly exceed the 28 billion zloty goal (in 2024), which would allow us to maintain the profitability in insurance business," Kulik said on an earnings call.
The company's shares were among the top performers on the European STOXX 600 index, up 4.3% at 1232 GMT.
The annual results mean PZU may increase its dividend payout, analysts said.
Lukasz Janczak from Erste Group, said the insurer is likely to keep about 20% of full-year profit, resulting in a dividend of 4.68 zlotys per share. Trigon's Maciej Marcinowski said he expects a final dividend of around 4 zlotys.
Acting CEO Anita Elzanowska said PZU's standalone profit - a key determinant for dividends - rose to almost four billion zlotys from 1.6 billion.
The company's dividend policy allows for 50%-100% of consolidated yearly profit to be allocated as a payout. However, the dividend payout from last year's profit will be decided by management board in new composition, said Kulik.
PZU is still searching for a permanent chief executive officer.
($1 = 3.9388 zlotys)