Activities of PKO Bank Polski SA Group

Activities of PKO Bank Polski SA – the parent company of the PKO Bank Polski SA Group1

The PKO Bank Polski SA Group conducts business activities as part of segments offering specific products and services addressed to specific groups of customers. The manner in which the business segments are divided ensures consistency with the sales management model and offers the customers a comprehensive product mix comprising both traditional banking products and more complex investment products. Currently, the Group conducts its business activities in the retail segment as well as in the corporate and investment segments.

Retail segment

The retail segment offers a full range of services for individuals as part of retail and private banking. Moreover, it comprises transactions conducted with legal persons, i.e. small and medium enterprises, developers, housing associations and property managers. The products and services offered to customers in this segment include, amongst others: current accounts, savings accounts, term deposits, private banking services, investment and insurance products, credit and debit cards, electronic banking services, consumer and housing loans, corporate loans, leases.

Number of CUSTOMERS: 9.2 mn

Loans volume: 146 bn

Deposits volume: 162 bn

Corporate and investment segment

The corporate and investment segment comprises transactions conducted with large corporate customers and financial institutions. This segment comprises the following products and services: running current accounts and term deposits, safekeeping of securities, currency products, derivative products, corporate loans as well as leasing and factoring. As part of this segment’s activities, PKO Bank Polski SA also concludes, on its own or in consortiums with other banks, agreements for financing large projects in the form of loans and issues of non-Treasury securities. Moreover, this segment comprises own activities, i.e. investing activities, brokerage activities, interbank transactions, as well as transactions in derivative instruments and debt securities.

Number of customers: 15 k

Loans volume: 52 bn

Deposits volume: 38 bn

[1] In this sub-chapter the Bank’s management information is presented; any differences in total balances, shares and growth rates result from rounding.

Market position of PKO Bank Polski SA Group

In 2016, the Bank maintained its leading position in terms of the share in the loan market and in the deposit market. Also in particular sectors of the financial services market the Group companies hold the lead and key positions.

Market share

 31.12.201631.12.201531.12.201431.12.201331.12.2012Change 2016/2015
Loans for:*17.8%17.9%17.9%16.1%16.1%-0.1 p.p.
private individuals, of which:22.8%22.9%22.9%19.1%19.0%-0.1 p.p.
housing25.7%25.5%25.8%20.6%20.0%0.2 p.p.
PLN28.6%28.7%29.6%28.4%28.6%-0.1 p.p.
foreign curency21.4%21.5%21.5%12.8%12.9%-0.1 p.p.
consumptional and other15.8%16.1%15.6%15.4%16.6%-0.3 p.p.
institutional entities12.9%13.0%13.1%13.1%13.2%-0.1 p.p.
Deposits for:17.3%17.9%17.3%16.3%16.8%-0.6 p.p.
private individuals, of which:20.7%20.7%21.7%21.7%21.8%0 p.p.
institutional entities12.4%14.0%11.5%9.4%10.2%-1.6 p.p.
Lease7.5%6.1%6.4%7.2%6.6%1.4 p.p.
TFI assets7.6%7.3%8.1%7.6%6.9%0.3 p.p.
Non-Treasury debt securities (indebtedness)29.1%28.8%31.5%20.1%23.4%0.3 p.p.
Brokerage activities      
trading in the secondary market9.4%9.1%10.5%9.5%9.1%0.3 p.p.

Source: NBP, GPW, Związek Polskiego Leasingu
* Data according to Webis, the National Bank of Poland's reporting system. Market shares were updated in 3Q 2016 as a results of a change in the presentation of market data for the period from September 2014 to September 2016. After the change, receivables from mortagage banks, which had previously been presented under "Other receivables" classified as consumer loans, are now presented under "Housing loans to housholds".

Activities of other entities of the PKO Bank Polski SA Group 

Among strict banking activity the PKO Bank Polski SA Group provides specialist financial services relating to leasing, factoring, investment funds, pension funds, insurance and debt collection services, transfer agent, IT specialist outsourcing and support in the conduct of business, as well as real estate development and management of real estate.

General information on the selected PKO Bank Polski SA Group entities

PKO Towarzystwo Funduszy Inwestycyjnych SA

Value of investment fund assets (in PLN billion)

In 2016 Company generated a net profit in amount of PLN 59.8 million (in 2015 net profit amounted to PLN 56.5 million).

The value of fund assets under management of the Company as the end of 2016 amounted to PLN 19.7 billion which represents an 6.8% increase in the value of assets compared to the end of 2015. The increase in the value of assets was mainly associated with the significant net profit from sales and the result from assets management.

PKO Towarzystwo Funduszy Inwestycyjnych SA ranks 3rd in terms of the net assets value with a 7.6% share in the investment funds market and the first place with a 14.4% share in managed assets of non dedicated funds*.
As of 31 December 2016, the Company was managing 42 investment funds and subfunds.

In 2016 the Company’s offer was expanded by two investment funds: PKO Absolutnej Stopy Zwrotu Europa Wschód - Zachód – a closed end investment fund, and Subfundusz PKO Medycyny i Demografii Globalny under the umbrella fund Fundusz PKO Parasolowy – open end fund.

In 2016 the Company performed 29 issues of investment certificates of closed end funds, under which it obtained assets with a total gross value of PLN 993.7 million.

In 2016 44 thousand customers acceded the Pension Programme ‘Pakiet Emerytalny PKO TFI’ which is 56% of all customers of the Programme in the Company’s offer since 2012. As at 31 December 2016 PKO Towarzystwo Funduszy Inwestycyjnych SA managed 23 Group Pension Funds. Additionally, in 2016 the Company participated in over a dozen tenders relating to Group Pension Programmes which will be resolved in 2017.

* Source: The Chamber of Fund and Asset Managers (Izba Zarządzających Funduszami i Aktywami).


Company in 2016 induced net profit amounting to PLN 5.2 million (vs PLN 7.9 million in 2015).

The net assets value of PKO BP Bankowy OFE (in PLN billion)*

Number of PKO BP Bankowy OFE's members (in thousand )*

Results of the Open Pension Fund (OFE)*:

As at the end of December 2016 the net asset value of PKO BP Bankowy OFE managed by PKO BP BANKOWY PTE SA amounted to PLN 7.0 billion, which is an increase of 10.6 % compared with the end of 2015. The increase in the net asset value was related mainly to the rate of return on Fund’s assets. As at the end of December 2016 PKO BP Bankowy OFE had over 937 thousand members. PKO BP Bankowy OFE ranks 8th on the pension fund market in terms of OFE net asset value and 9th in terms of the number of OFE members.

In 2016 the Polish Financial Supervision Authority announced the rates of return of OFE as at the end of March and September, for a period of 36 months. In accordance with the PFSA announcement PKO BP Bankowy OFE earned a rate of return of 9.074% from 29 March 2013 to 31 March 2016 compared with the weighted average rate of return for all funds of 6.344%, ranking first among the pension funds operating on the market. In the second listing which accounted for the period from 30 September 2013 to 30 September 2016 the Fund earned a rate of return of 3.073% with the weighted average for all funds at 0.133%, coming second in the ranking of open pension funds.

* Source:


On 1 December 2016 PKO Leasing SA acquired Raiffeisen-Leasing Polska SA. As a result of this transaction the PKO Leasing SA Group was expanded by the said company and the companies under the control of Raiffeisen-Leasing Polska SA, in accordance with IFRS, i.e. Raiffeisen-Leasing Real Estate Sp. z o.o., ‘Raiffeisen Insurance Agency’ Sp. z o.o., Raiffeisen-Leasing Service Sp. z o.o. and ROOF Poland Leasing 2014 DAC.
In 2016, the PKO Leasing SA Group (i.e. PKO Leasing SA and its subsidiaries) earned a net profit of PLN 15.7 million. This result also includes the financial result of the Raiffeisen-Leasing Polska SA Group earned in December 2016.

Value of assets under lease (in PLN billion)

Factoring turnover value of the subsidiary (in PLN billion)

Leasing activities:

At the end of 2016 the total carrying amount of the lease investments of the PKO Leasing SA Group entities amounted to PLN 11.4 billion, including of the Raiffeisen-Leasing Polska SA Group – PLN 5.3 billion.

In 2016 the PKO Leasing SA Group (net of the Raiffeisen-Leasing Polska SA Group companies) transferred leased assets totalling PLN 4.0 billion for use, i.e. 32% more than in 2015. This increase is the result of organic development and using the sales network of PKO Bank Polski SA.

In 2016 the Raiffeisen-Leasing Polska Group companies launched leased assets and loan agreements totalling PLN 3.7 billion for use, including in December 2016 – with a value of PLN 0.37 billion.

In terms of the value of assets leased the PKO Leasing SA Group (without Raiffeisen-Leasing Polska SA Group) at the end of June 2016 ranked 4th position with a leasing services market share of 6.9%, and the Raiffeisen-Leasing Polska SA Group ranked 6th position on the lease services market, with a 6.4% share in the market*, giving a total market leadership.

Factoring activity:

In 2016 the company has been providing domestic and export factoring services with both takeover of the risk and no risk taken, reverse factoring and factoring programme service for counterparties.

In 2016 the value of factoring turnover amounted to PLN 9.8 billion (in 2015 the value of factoring turnover amounted to PLN 6.3 billion); at the end of 2016 the number of customers amounted to 355.

PKO Faktoring SA as at 31 December 2016 ranked 9 place among factoring companies associated in the Polish Factors' Association with a market share of 6.2%.

* Source: Company’s calculations and Polish Leasing Association data

PKO Życie Towarzystwo Ubezpieczeń SA GROUP

In 2016, the PKO Życie Towarzystwo Ubezpieczeń SA Group (i.e. PKO Życie Towarzystwo Ubezpieczeń SA and its subsidiary, Ubezpieczeniowe Usługi Finansowe Sp. z o.o.) generated a net profit of PLN 7.2 million (in 2015, the Group closed the year with a net loss of PLN 9.9 million). The result of 2016 reflects the strategy of building a portfolio of insurance offered via the distribution network of PKO Bank Polski SA and cost synergies obtained in the area of insurance services provided by members of the Bank’s Group.

PKO Życie Towarzystwo Ubezpieczeń SA offers a wide range of insurance products: from protection products to investment products. The Company focuses on insuring the lives and health of its customers, it offers independent products and products linked to the banking products offered by PKO Bank Polski SA.

The value of gross assigned contributions from insurance contracts as at 31 December 2016 amounted to PLN 900.6 million.

PKO Towarzystwo Ubezpieczeń SA

PKO Towarzystwo Ubezpieczeń SA began their operating activity in January 2016 and closed its first year of operations with a loss of PLN 6.6 million.

The company offers group insurance against loss of income or hospital treatment following a misadventure for the customers of PKO Bank Polski SA, who are holders of credit and individual insurance: cash loan repayment insurance against loss of income or disability following a misadventure for PKO Bank Polski SA borrowers, mortgage payment insurance, mortgage loan insurance in case of loss of income, disability following an misadventure and hospital treatment for customers of PKO Bank Polski SA or PKO Bank Hipoteczny SA and property insurance for customers of PKO Bank Polski SA and PKO Bank Hipoteczny SA who have entered into credit agreements or have loans secured with a mortgage.

The value of gross written premiums from insurance contracts concluded by the company as at 31 December 2016 amounted to PLN 365.7 million.

PKO Bank Hipoteczny SA

PKO Bank Hipoteczny SA started its operational activity In April 2015. The principal purpose of the Bank is to issue covered bonds, which serve as the main source of long-term financing of mortgage loans. It specializes in granting mortgage housing loans to individual customers and purchases receivables in respect of such loans from PKO Bank Polski SA. It acquires loans for its portfolio based on strategic cooperation with PKO Bank Polski SA.

The gross loan portfolio (in PLN billion)

PKO Bank Hipoteczny SA in 2016 achieved net profit in the amount of PLN 13.2 million.

The total gross value of the PKO Bank Hipoteczny SA loans portfolio as at 31 December 2016 amounted to PLN 8.2 billion, including PLN 5.9 billion of mortgage housing loans purchased under the agreement concluded with PKO Bank Polski SA.

On 28 September 2016 Commission de Surveillance du Secteur Financier in Luxembourg approved the Base Prospectus of PKO Bank Hipoteczny SA relating to the programme for issuing mortgage bonds on the European market. Under the programme the Company may conduct issues of mortgage bonds in any currency. The total value of outstanding mortgage bonds issued under the programme cannot exceed EUR 4 billion. The programme stipulates that mortgage bonds issued under it may be quoted in parallel on exchanges in Luxembourg and Warsaw.

In 2016 the Company carried out two issues of covered bonds, including:

a) two issues denominated in PLN, targeting institutional investors with the total nominal value of PLN 1 billion maturing under the period of 5 years and one day from the issuance date. Interest rate based on variable yield equalled to respectively WIBOR 3M + 0.65 p.p. margin and WIBOR 3M + 0.59 p.p. margin; the bonds are admitted to trading on the Catalyst regulated over-the-counter market maintained by BondSpot SA and the parallel market of the Warsaw Stock Exchange in Warsaw,
b) one foreign issue denominated in EUR, targeting institutional investors with the total nominal value of EUR 500 million maturing under the period of 5 years and 8 months; the fixed interest rate during the term of issue amounts to 0.125%, and the yield at the pricing day was 0.178%; the mortgage bonds were purchased by investors at a price constituting 99.702% of their nominal value and are quoted in parallel on the exchanges in Luxembourg and in Warsaw.

The total value of mortgage bonds issued (at the nominal value) as at the end of 2016 amounted to PLN 3.24 billion.


PKO BP Finat Sp. z o.o. in 2016 generated net profit in the amount of PLN 45.7 million (in 2015 net profit of the Company was calculated at PLN 16.2 million).

The Company provides complex services for the financial sector firms – such as transfer agent services, bookkeeping for funds and companies. It specializes also in outsourcing of IT specialists, project teams and IT processes. In 2016 the Company started providing group insurance dedicated to products offered by PKO Bank Polski SA.

In February 2016 the Company has been accepted as one the supporting bodies for Chamber of Fund and Asset Management.

In April 2016 the Company successfully passed a supervision audit and kept the Certificate of Registration - Information Security Management System valid, in line with requirements of ISO/IEC 27001:2013.

In September 2016 the Company became a member of the Association of Business Service Leaders in Poland, ABSL, i.e. the organization which associates Shared Service Centers (SSC), Business Process Outsourcing (BPO), Information Technology Outsourcing (ITO), Research&Development (R&D) and companies supporting the development of the business services sector.

In 2016 the Company extended cooperation by five Investment Fund Companies in the area of valuation of open end and closed ended funds, transfer agent and supporting services for closed ended funds. In total, the Company acquired 81 closed ended and open end investment funds to service, signing new Agreements and acquiring an organized part of the enterprise dedicated to valuing investment funds.


In 2016 the KREDOBANK SA Group (i.e. KREDOBANK SA and its subsidiary Finansowa Kompania ‘Idea Kapitał’ Sp. z o.o.) generated net profit of UAH 224 million (PLN 34 million). In 2015 net profit of the KREDOBANK SA Group was UAH 110 million (PLN 19 million). Such results are the effect of KREDOBANK SA development in all business segments along with effective liquidity, margin and risk management.

The gross loan portfolio (in UAH million)

Loan portfolio of the KREDOBANK SA Group (gross) in 2016 increased by UAH 1 540 million, i.e. by 30.7% and at 31 December 2016 amounted to UAH 6 552 million (loan portfolio gross expressed in PLN at the end of 2016 was equal to PLN 1 010 million). Increase of the loan portfolio value in UAH was mainly a result of the increase of new loans sales.

The value of term deposits of the KREDOBANK SA Group of customers in 2016 increased by UAH 1 081 million, i.e. by 36.8 % and at 31 December 2016 amounted to UAH 4 020 million (term deposits expressed in PLN as of the end of 2016 amounted to PLN 620 million). Increase of the deposit value is the effect of credibility increase and the position of KREDOBANK SA on the Ukrainian banking market.

As at 31 December 2016 ranch office network of KREDOBANK SA comprised the Central Branch in Lviv and 111 subordinated branches in 22 out of 24 Ukrainian districts. In 2016 location of the 6 subordinated branch was changed, 5 new branches were opened and 4 branches were closed.

Qualia Development Sp. z o.o. Group

Sale of apartments - number of contracts signed

Qualia Development Sp. z o.o. Group (i.e. Qualia Development Sp. z o.o. and its subsidiaries) in 2016 generated net profit in the amount of PLN 30.8 million (the Group closed 2015 with net loss of PLN 22.4 million). The net profit for 2016 is primarily the effect of final completion of the project Royal Park in Warsaw and transferring the apartments to customers, hotel business and selling selected properties and companies.

In 2016 the Group was focused on:

  • completion of the final stage of the Royal Park investment implemented at part of the Nowy Wilanów project in Warsaw, obtaining perpetual usufruct and handover of units to customers,
  • completion of the fourth stage of the project Neptun Park in Gdańsk, 
  • selling premises in investment projects accomplished in Warsaw, Międzyzdroje, Sopot and Gdańsk,
  • running hospitality business on the basis of completed projects in Gdańsk and Międzyzdroje,
  • Continuing the process of selling selected real properties and companies in the Qualia Development Sp. z o.o. Group; real properties located in the area of Żwirki i Wigury Street and Racławicka Street in Warsaw, land properties and a development project in Jurata (transactions were completed in the 3rd quarter of 2016).