PKO Bank Polski SA Group - Description of the organization

Entities included in the financial statement

As at 31 December 2015, the PKO Bank Polski SA Group consisted of the Bank, as the parent company and the 42 direct and indirect subsidiaries. In the consolidated financial statements PKO Bank Polski SA Group is presented as the parent company of the PKO Bank Polski SA Group and its subsidiaries as defined in IAS 27 ‘Consolidated and Separate Financial Statements’.

The PKO Bank Polski SA Group comprises the following direct subsidiaries:

PKO Bank Polski SA Group

Subsidiaries*

PKO Towarzystwo
Funduszy
Inwestycyjnych SA

PKO Towarzystwo
Funduszy
Inwestycyjnych SA

100%
Warsaw
Investment fund management

PKO BP BANKOWY PTE SA

PKO BP BANKOWY PTE SA

100%
Warsaw
Management of pension funds

PKO Leasing SA

PKO Leasing SA

100%
Łódź
Leasing activities

PKO BP Finat Sp. z o.o.

PKO BP Finat Sp. z o.o.

100%
Warsaw
Services, including transfer agent services amd outsourcing of IT specialist

PKO Życie Towarzystwo
Ubezpieczeń SA

PKO Życie Towarzystwo
Ubezpieczeń SA

100%
Warsaw
Life insurance

PKO Towarzystwo
Ubezpieczeń SA

PKO Towarzystwo
Ubezpieczeń SA

100%
Warsaw
Other non-life insurance operations

PKO Bank Hipoteczny SA

PKO Bank Hipoteczny SA

100%
Gdynia
Banking activities

PKO Finance AB

PKO Finance AB

100%
Stockholm, Sweden
Financial services

KREDOBANK SA

KREDOBANK SA

99.6293%
Lviv, Ukraine
Banking activities

“Inter-Risk Ukraina’ Spółka
z dodatkową
odpowiedzialnością

“Inter-Risk Ukraina’ Spółka
z dodatkową
odpowiedzialnością

100%
Kiev, Ukraine
Debt collection activities

Finansowa Kompania
“Prywatne Inwestycje’
Sp. z o.o.1

Finansowa Kompania
“Prywatne Inwestycje’
Sp. z o.o.1

95.4676%
Kiev, Ukraine
Financial services

Qualia Development Sp. z o.o.

Qualia Development Sp. z o.o.

100%
Warsaw
Property development

Merkury - fiz an2

Merkury - fiz an2

100%
Warsaw
Investment of accumulated funds from fund participants

NEPTUN - fizan2

NEPTUN - fizan2

100%
Warsaw
Investment of accumulated funds from fund participants

* recognized in the consolidated financial statements of the PKO Bank Polski SA Group under the acquisition method.
1) The second shareholder of the Company is ‘Inter-Risk Ukraina’ Spółka z dodatkową odpowiedzialnością (a company with additional liability).
2) PKO Bank Polski SA holds the Fund’s investment certificates; the Fund’s investment certificates held are presented as the share in equity.

The full description of the Group is included in the financial Statements of the PKO Bank Polski SA Group for the year ended 31 December 2016.

The PKO Bank Polski SA Group against its peer group 5)

The PKO Bank Polski SA Group has the highest net profit in its peer group

In 2016, the net profits of the PKO Bank Polski SA Group and its peer group were significantly affected by regulatory charges, including mainly the bank tax.

In spite of a significant improvement in interest income and net write-downs achieved under favourable economic conditions, the banks from the peer group did not manage to improve their net profits in relation to the previous year. 

Net profit





In 2016, the PKO Bank Polski SA Group generated the highest net profit among its peer bank groups. At the same time, it achieved a y/y increase.

Profitability of the PKO Bank Polski SA Group and its peer group affected by regulatory factors

Equity profitability

Assets profitability

The profitability ratios (ROE, ROA) of the peer group continued to decrease in 2016. It was mainly due to changes in the regulatory environment (including: bank tax and new supervisory recommendations), which affected both the level of equity and income and operating expenses of bank groups.

The profitability of the PKO Bank Polski SA Group improved in the same period.

Improvement in the cost efficiency of the PKO Bank Polski SA Group and its peer group, mainly due to a better result on business activities

Cost efficiency

Cost efficiency improved significantly in 2016 (after excluding the costs of bank tax), which was associated with:

  • a high base of reference from 2015, associated with additional payments to the Bank Guarantee Fund and Borrowers’ Support Fund;
  • a significant improvement in the result on business activities (mainly net interest income) compared with 2015;
  • cost discipline maintained by banks despite growing spending on digitization and cyber security.

The PKO Bank Polski SA Group improved its cost efficiency position in 2016, getting closer to its peer group.

Increase in the capital ratio of the PKO Bank Polski SA Group and its peer group due to growing regulatory and supervisory requirements

Total capital adequacy ratio

The capital adequacy of the banking sector increased in 2016. Among other things, it was due to growing minimum requirements defined by the PFSA.

The same trend affected the largest bank groups, including the PKO Bank Polski SA Group.

Actions taken by the PKO Bank Polski SA Group, including mainly the accumulation of profit, allowed the PKO Bank Polski SA Group to improve its capital position in relation to its peer group.

5) The peer group consists of the Capital Groups: Pekao SA, mBank SA, ING Bank Śląski SA, BZ WBK SA. The data for the calculation of ratios is from the annual consolidated report and quarter reports of the individual banks.

Key changes in the structure of the bank’s group in 2016

Acquisition of Raiffeisen-Leasing Polska SA by PKO Leasing SA

On 2 November 2016, PKO Bank Polski SA (as the guarantor), Raiffeisen Bank International AG (as the seller) and PKO Leasing SA (as the purchaser) signed an agreement on the sale of 100% of shares in Raiffeisen-Leasing Polska SA by Raiffeisen Bank International AG to PKO Leasing SA. The transaction was closed on 1 December 2016 after the conditions precedent had been met, including, among other things, gaining the required anti-monopoly consents in Poland and Ukraine.

As a result of the aforementioned transaction, PKO Leasing SA purchased 1 500 038 ordinary shares in Raiffeisen-Leasing Polska SA with a nominal value of PLN 100 each, representing 100% of the Company’s share capital and entitling to 100% of the voting rights at the General Meeting of the Company. The purchase price amounted to PLN 850 million. The purchase of the shares was financed entirely with a loan granted by PKO Bank Polski SA.

The business operations of the purchased company consist of conducting leasing activities and granting loans.

As part of the transaction, PKO Bank Polski SA replaced the financing granted to Raiffeisen-Leasing Polska SA and its subsidiaries by Raiffeisen Bank International AG or the entities in its Group, totalling PLN 2 412 million and PLN 255.6 million. The transaction was financed with PKO Bank Polski SA’s own funds.

In 2017, both companies, i.e. PKO Leasing SA and Raiffeisen-Leasing Polska SA, are planned to be merged, including the performance of a legal merger in April 2017.

Full information about this transaction and other changes in the structure of the Bank’s Group in the reporting period is included in the Financial Statements of PKO Bank Polski SA for the year ended 31 December 2016.