Characteristics of the PKO Bank Polski SA Group activity

The PKO Bank Polski SA Group (the Bank’s Group, the Group) is among the largest financial institutions in Poland and is one of the largest financial groups in Central - Eastern Europe. PKO Bank Polski SA (the Bank), the parent company of the Group, is the largest commercial bank in Poland and a leading bank on the Polish market in terms of scale of operations, equity, loans, deposits, number of customers and the size of the distribution network.

PKO Bank Polski SA is a universal deposit-loan commercial bank offering services to both residents and non-residents retail, corporate and other customers. PKO Bank Polski SA is licensed to hold foreign exchange and currencies and sell/buy them, as well as to perform a full range of foreign exchange services, to open and hold bank accounts abroad and to deposit foreign exchange in these accounts. The Bank stands out on the Polish banking market with high financial results, which ensure stable and safe development of the Bank. PKO Bank Polski SA keeps a leading share in the Polish banking market at the level of 17.3% (deposits) and 17.8% (loans). The Bank is a leader in the Polish market in terms of the number of current accounts, payment cards and the value of mortgage loans.

Apart from the strictly banking and brokerage activities, the PKO Bank Polski SA Group offers a range of specialized services relating to leasing, factoring, investment funds, pension funds and insurance and transfer agent, outsourcing of IT professional, support services in the field of conducting business by other entities, it conducts real estate development and management activities, as well as through its subsidiaries in Ukraine, the Group conducts banking and provides financial services and debt collection.

The Group operates in the Republic of Poland and through its subsidiaries: KREDOBANK SA, ‘Inter-Risk Ukraina’ Sp. z d.o. (Additional Liability Company), Finansowa Kompania ‘Prywatne Inwestycje’ Sp. z o.o., Finansowa Kompania ‘Idea Kapitał’ Sp. z o.o in Ukraine as well as through its subsidiaries PKO Finance AB and PKO Leasing Sverige AB in Sweden and in Germany by a branch of corporate PKO Bank Polski SA (PKO Bank Polski Niederlassung Deutschland) launched in 2015.

During the whole period of activity, the Bank had been consistently developing the prestige of its brand and providing services to many generations of Poles. The long tradition and customers’ confidence are the important elements of identification of the PKO Bank Polski SA Group, that’s why consistent measures are taken in order to reinforce its perception as a group of institutions:

  • secure, strong and competitive,
  • modern and innovative, customer-friendly and efficiently managed,
  • socially responsible, concerned about the development of the cultural awareness of Poles.

Despite the keen market competition, the PKO Bank Polski SA Group effectively develops its operations not only in its traditional area of operations – serving retail customers. It has also become a leader for corporate customers and small and medium-sized enterprises – especially with regards to financing their operations, and for the market of financial services offered to municipalities, poviats, voivodeships and the public sector. It is also one of the foremost underwriters of municipal bonds.

High standards of customer service and effective procedures for assessing credit risk enabled the PKO Bank Polski SA Group in 2016 to increase gross loan portfolio by over 5% to PLN 200.6 billion and achieve a 22.8% market share in loans to individuals, whereas amounts due to customers as at the end of 2016 reached PLN 205.1 billion thanks to which the Group maintained its leading position in terms of the deposit market share, which amounted to 17.3%.

In 2016, the Group continued its activities concerning the improvement of efficiency of distribution network. As at the end of 2016 the largest network of PKO Bank Polski SA’s branches in Poland comprised 1 238 branches and 837 agencies. The Bank’s customers can use the systematically enriched electronic banking services offered under the iPKO brand and as a part of Inteligo account and introduced, new standard for mobile payments – IKO. Customers of PKO Bank Polski SA also have an increasing ATMs network at their disposal – as at the end of 2016, there were 3 206 ATMs.

PKO Bank Polski SA Group is one of the largest employers in Poland. As at the end of 2016, the Group employed more than 25 thousand full-time employees. The comprehensive training and education offer served the purpose of building a professional and loyal team of employees able to provide increasingly higher quality customer services and achieve outstanding results.

The Bank’s social responsibility is reflected in the operations of PKO Bank Polski SA’s Foundation which are performed for the benefit of the public to the widest possible extent.

The PKO Bank Polski SA Group in years 2012-2016

 20162015201420132012 restated*
Statement of financial position (in PLN million)     
Balance sheet total285 573266 940248 701199 231193 151
Total equity32 56930 26527 61625 15424 436
Loans and advances to customers200 607190 414179 497149 623143 483
Amounts due to customers205 066195 759174 387151 904146 194
Profit and loss account (in PLN million)     
Net profit2 8742 6103 2543 2303 739
Interest and similar income7 7557 0297 5236 7228 089
Fee and commission income2 6932 8512 9343 0062 917
Result on business activity11 79110 66511 14710 70711 622
Net impairment allowance and write-downs-1 623-1 476-1 899-2 038-2 325
Administrative expenses-5 590-6 036-5 245-4 623-4 683
Financial ratios     
ROA net1.1%1.0%1.4%1.6%2.0%
ROE net9.1%9.0%12.4%13.2%16.0%
C/I47.4%56.6%47.1%43.2%40.3%
Net interest margin3.2%3.0%3.6%3.7%4.7%
Share of impaired loans5.9%6.6%6.9%8.2%8.9%
Costs of risk-0.75%-0.72%-0.96%-1.31%-1.45%
Total capital ratio15.81%14.61%12.96%13.58%12.89%
Client base of the PKO Bank Polski SA (in thousands)9 1998 9828 8948 4518 173
Individuals (in thousands)8 7568 5388 4318 0247 761
SME (in thousands)429430449415401
Corporates (in thousands)1514141212
Operational data     
Branches of the PKO Bank Polski SA (number)1 2381 2781 3191 1861 198
Headcount (in FTEs)29 44129 22129 03227 38728 556
Current accounts in the PKO Bank Polski SA (in thousands)6 8506 6216 6606 3186 220
Stock of shares     
Market capitalization (in PLN million)35 17534 16344 70049 27546 125
Number of shares (in million)1 2501 2501 2501 2501 250
Share price (in PLN)28.1427.3335.7639.4236.90
Dividend per 1 share (in PLN) (paid in current year from the previous year's profit)00.0000.000.751.801.27