Development directions

Directions of development of the PKO Bank Polski SA Group

Directions of development of the PKO Bank Polski SA GroupThe development directions of PKO Bank Polski are set out in the Strategy for the years 2016-2020 ‘We support the development of Poland and the Poles’ (the Strategy), which was approved by the Supervisory Board on 3 November 2016.

Who we are – our mission

‘WE SUPPORT THE DEVELOPMENT OF POLAND AND THE POLES’

We have provided financial solutions to our customers for more than 100 years; therefore, we understand the needs of the Poles and Polish companies.

Consequently we change, we invest in development and we implement modern technologies responsibly to enable our customers to manage their finances anywhere, any time. We are proud of our history and our Polish roots.

We wish to continue to have a positive impact on Poland – its people, firms, culture and environment. As one of the largest banks in Central and Eastern Europe we care about the interests of our shareholders, customers, employees and local communities in a responsible manner.

Strategy of PKO Bank Polski SA for the years 2016 – 2020

The new strategy is an answer to the changing market environment and the need to adjust the organization to new challenges facing the banking sector and the Polish economy. The direction of the transformation of the Bank’s business model will remain closely connected with the growing digitization of social life and the strategy for economic development of Poland.

The strategy for the years 2016-2020 based on strong foundations developed in previous years. Thanks to the implementation of ‘Lider’ and ‘Codziennie Najlepszy’ strategies, PKO Bank Polski SA strengthened its position as the unquestionable banking market leader in Poland, consistently developed the range and quality of e-banking and mobile banking (IKO) services, improved the processes and organizational efficiency, and built competence that will allow it to leverage growth through acquisitions.

Strategic goals

By 2020, PKO Bank Polski SA intends to:

  • achieve a return on equity (ROE) of more than 10%,
  • reduce the cost to income (C/I) ratio to below 45%,
  • maintain the cost of risk within the range of 75-85 b.p.,
  • manage its capital adequacy in an efficient and reasonable manner, in order to maintain TCR and CET1 above the regulatory and supervisory requirements and, at the same time, allow the payment of dividend.

As the unquestionable banking market leader in Poland and the leader in all key market segments, the Bank shall address the following main strategic challenges by 2020:

  1. supporting the development of Polish business, particularly in the small- and medium-sized enterprises segment,
  2. increase of customer satisfaction,
  3. increase in the number of customers using digital solutions,
  4. process optimization– ‘faster, paperless’,
  5. to be the Best Employer,
  6. the development of innovation and search for the new sources of revenues,
  7. to become a leader in the field of cooperation in the area of cyber security.

Implementation of the strategy

Innovation and technology Modern organization Operational efficiency Distribution excellence Closeto thecustomer Businessmodelexpansion

Business model expansion

This strategic lever will be implemented through the active monitoring of the domestic market for potential acquisitions, extending the availability of the offer of Group companies, international development supporting the expansion of the Bank’s customers, alliances with strategic partners e.g. through loyalty platforms and cooperation with public institutions through e-State solutions. As part of its effort to become a leader in technological solutions, the Bank also plans to invest in selected new-technology companies.
The Bank will continue to combine creating value for the shareholders with social responsibility and sustainable development. In its daily work, it will integrate business goals with acting on behalf of all groups of stakeholders, at the same time pursuing social initiatives. The Bank’s values and transparent communication will be the key foundations of building a dialogue with customers, employees, shareholders and the community.

Close to the customer

PKO Bank Polski SA will focus on supporting the development of the Polish business, particularly in the segment of small and medium-sized enterprises, as well as on customer satisfaction understood as building lasting relations with the Bank. This will be achieved through a simple and transparent offer, high quality advice, flexible pricing solutions, intuitive and fast sales processes, and a reduction in the volume of paper documentation.

Distribution excellence

Distribution channels will be developed based on the diagnosed needs of the customer to form a holistic model of multi-channel service system. The Bank will aim at providing consistent customer experience in all channels. These aims will be executed through the continued process of modernization of the network of branches playing a key role in building relations with customer and the market position, as well as further development of remote contact channels and an increase in the number and activity of customer using digital solutions.

Operational efficency

The Strategy involves the further improvement of internal processes. Decisions will be made in a fast and efficient manner with the use of high quality data analytics, process automation and dematerialization, innovative identification and authorization methods and preventing bureaucracy.

Modern organization

A well-organized and motivated team will be the key to achieving strategic goals. The Strategy emphasizes the importance of creating a friendly, supportive and open working environment. It will be achieved through motivating leadership, modern knowledge management and promoting solutions that facilitate cooperation with the organization.

Innovation and technology

PKO Bank Polski SA will consistently invest in innovative solutions, actively create new market standards and innovative tools for customers and organizations, strengthen its role as a public trust institution and prevent cyber threats. The Bank will support the development of Polish innovators in the enterprise segment (micro, small, medium and corporate), take part in projects with perspectives and become involved in areas and sectors of the future.

Strategy implementation is supported by six sustainable development levers:

1.BEING CLOSE TO THE CUSTOMER

PKO Bank Polski SA will focus on supporting the development of the Polish business, particularly in the segment of small and medium-sized enterprises, as well as on customer satisfaction understood as building lasting relations with the Bank. This will be achieved through a simple and transparent offer, high quality advice, flexible pricing solutions, intuitive and fast sales processes, and a reduction in the volume of paper documentation.

2.DISTRIBUTION EXCELLENCE

Distribution channels will be developed based on the diagnosed needs of the customer to form a holistic model of multi-channel service system. The Bank will aim at providing consistent customer experience in all channels. These aims will be executed through the continued process of modernization of the network of branches playing a key role in building relations with customer and the market position, as well as further development of remote contact channels and an increase in the number and activity of customer using digital solutions.

3.OPERATIONAL EFFICIENCY

The Strategy involves the further improvement of internal processes. Decisions will be made in a fast and efficient manner with the use of high quality data analytics, process automation and dematerialization, innovative identification and authorization methods and preventing bureaucracy.

4.MODERN ORGANIZATION

A well-organized and motivated team will be the key to achieving strategic goals. The Strategy emphasizes the importance of creating a friendly, supportive and open working environment. It will be achieved through motivating leadership, modern knowledge management and promoting solutions that facilitate cooperation with the organization.

5.INNOVATION AND TECHNOLOGIES

PKO Bank Polski SA will consistently invest in innovative solutions, actively create new market standards and innovative tools for customers and organizations, strengthen its role as a public trust institution and prevent cyber threats. The Bank will support the development of Polish innovators in the enterprise segment (micro, small, medium and corporate), take part in projects with perspectives and become involved in areas and sectors of the future.

6.BUSINESS MODEL EXTENSION

This strategic lever will be implemented through the active monitoring of the domestic market for potential acquisitions, extending the availability of the offer of Group companies, international development supporting the expansion of the Bank’s customers, alliances with strategic partners e.g. through loyalty platforms and cooperation with public institutions through e-State solutions. As part of its effort to become a leader in technological solutions, the Bank also plans to invest in selected new-technology companies.

The Bank will continue to combine creating value for the shareholders with social responsibility and sustainable development. In its daily work, it will integrate business goals with acting on behalf of all groups of stakeholders, at the same time pursuing social initiatives. The Bank’s values and transparent communication will be the key foundations of building a dialogue with customers, employees, shareholders and the community.