PKO Bank Polski’s profit is close to breaking the record

2021.05.28

Net profit of PKO Bank Polski Group in the first quarter of 2021 returned to the level before the pandemic. It reached PLN 1.2 billion and was 2.3 times higher than a year before.
The Group expanded the scale of its operation. Its assets grew by 5.4% y/y and reached PLN 384 billion.
The Bank continues its digital transformation and limits the impact of its operation on the natural environment.

The economic effects of the third wave of the COVID-19 pandemic were much less severe than the two prior ones. The relatively good economic situation, coupled with the Bank’s great resilience to the turmoil and a strict cost discipline translated to the increase in the Group’s profit in the first quarter of 2021 up to the levels before the pandemic. The Capital Group’s net profit reached PLN 1.2 billion and was 2.3 times higher than a year before. The Group has also expanded the scale of its operation. Its assets grew by 5.4% y/y and reached PLN 384 billion.

“The COVID-19 pandemic is affecting the condition of the Polish companies less, along with the results of PKO Bank Polski. The Company's profit in the 1st quarter of 2021 reached PLN 1.2 billion and was similar to the highest result in its entire 100-year history. In the course of the last 12 years, together with hundreds of managers and thousands of employees, we led the Bank from the paper era to the digital one and built a modern organisation. During this time, the Company’s assets increased from PLN 156 billion at the end of 2009 to PLN 384 billion nowadays. I am leaving it in a very good financial condition, ready for new business challenges.

said Zbigniew Jagiełło, President of the Management Board of PKO Bank Polski

Net profit has returned to pre-pandemic levels

The net profit of PKO Bank Polski Group in the first quarter of 2021 returned to the level before the pandemic. It reached PLN 1.2 billion and was 2.3 times higher than a year before. The Group’s assets in the first quarter of 2021 grew by 5.4% y/y to over PLN 384 billion; the clients’ savings grew at a two-digit rate up to PLN 371 billion, whereas the financing granted to the clients reached almost PLN 249 billion.

The Bank’s great resilience to the turmoil in the business environment and a strict cost discipline helped rebuild its net profit quickly. The cost of risk in the first quarter of 2021 dropped to 0.68 percent. The cost of the Group’s operation in the first quarter of 2021 were, in turn, 7.4% lower than a year before.

The Bank retains a strong capital and liquidity position. The total capital ratio of the Bank’s Group after the first quarter of 2021 was 18.1% and was high above the regulatory minimum. The Group’s excess capital is at PLN 13 billion.

Green light for settlements with FX Borrowers

On 23 April, the Bank's shareholders agreed to settlements with FX borrowers. The costs of this solution will be covered from a specially designated fund with the value of PLN 6.7 billion. PKO Bank Polski is currently piloting the solution. After completion, the solution will be launched on a full scale.

The Bank’s Supervisory Board has already accepted the terms of settlements. They foresee the treatment of loans granted in CHF in a manner as if they were loans in PLN with an interest rate based on the WIBOR 3M reference rate and repaid in Polish zlotys since the moment of granting them. The solution will allow for eliminating the legal risk of FX housing loans which will let the Bank focus on more rapid development of its business operation in the years to come. It is also beneficial for the Bank’s clients.

Support for Poland and Poles in Fighting the Pandemic

PKO Bank Polski supports Poland and Poles in fighting the pandemic. In 2020, it transferred approx. PLN 25.8 million to hospitals and sanitary services to fight the COVID-19 pandemic. The companies from the Capital Group also joined the aid. The National Cloud Operator has designed and launched the e-registration vaccination system and the system of medical video consultations offered by medical personnel without leaving home.

The Bank is actively helping salvage Polish companies and jobs created by them. Together with the KIR, it set up a system for applying for subsidies from the Financial Shield of the Polish Development Fund, which was subsequently made available to other market players. It also became the leader in the distribution of funds from the Financial Shield of the PDF both in terms of the value of the funds provided and the number of companies that received this aid. The Bank has also joined the distribution of aid granted by the BGK.

Climate Responsible Bank

The PKO Bank Polski Capital Group reduces the negative impact of its operational activities on the environment. In 2020, it reduced the CO2 emission generated by its operation, lowered consumption of energy by 7.55 and curbed its paper consumption by 26%. In February 2021, for the first time in its history, the Group received white certificates, whereas in the second quarter of 2021 it will assemble the first PV micro-installations on several selected buildings.

In 2020, the Bank started including ESG risks in the credit process for corporate clients and up-dated its credit policy for carbon-intensive sectors. It also implemented the Renewable Energy Sources Policy, as part of which it concludes new RES financing transactions. At the beginning of 2021, it became the first participant of PKO Renewable Energy, i.e. a closed-end investment fund set up by PKO TFI.

Artificial Intelligence Accelerates Building of Autonomous Bank

One of the major technological elements aiding in the digital transformation of PKO Bank Polski is artificial intelligence (AI), which assists robotisation and is used more and more extensively in the Bank's daily operations. The artificial intelligence is used, among others, by voice-bots supporting the operation of the Bank’s costumer service helpline and the IKO voice assistant that was launched exactly a year ago, in May 2020. Every third person calling the Bank’s costumer service helpline is already serviced by a voice-bot, and the total number of calls serviced by the Bank’s AI has exceeded 1 million.

The AI also assists in soft debt collection, verifies authenticity of IDs and analyses tens of thousands of opinions of the IKO app users every month. It is also used by the robo-adviser supporting the operation of the PKO Inwestomat. In the first quarter of 2021, 132 processes were covered by robotisation with the use of AI. The Bank's robots have performed 55.6 million tasks and operations.

Rising Significance of Remote Channels

The pandemic accelerated the transition of clients to the remote channels. Almost 3/4 of the clients use the Bank's services in this mode. The popularity of the mobile baking app IKO is still on the rise; the app has been activated over 5.5 million times. In the first quarter of 2021, the clients processed as many as 97 million transactions using the app - the highest number in history.

Use of the Bank’s services at home is supported by consistently developed additional services, such as the Automarket website launched in July 2020. Through it, customers can buy technically tested and guaranteed cars. By the end of the first quarter of 2021, the website was visited by 2.4 million users. 75% of cars sold via the website is financed with products of the PKO Group.

Reaching for the Cloud

PKO Bank Polski is using cloud solutions in an increasing degree. In 2020, the Bank moved 12,000 terminals operated by bank counsellors to the cloud and made the MS Team tool available to 13,000 employees. On the other hand, the Bank's clients can use the help of the Video-assistant which uses the cloud solutions. The Bank has also implemented the Good Morning HR platform, which operates in the SAP public cloud and services soft HR processes for over 26,000 of the Bank’s employees. The Bank has started the migration of the www.pkobp.pl and iPKO websites to the cloud, as well as re-platforming the card system. In the first quarter of 2021, Google Cloud, as part of the strategic cooperation with the National Cloud Operator, launched the Warsaw region of cloud services.

See Presentation of the results for the first quarter of 2021 - Click here

***

PKO Bank Polski is the undisputed leader of the Polish banking sector, and the value of its assets is PLN 384 billion. In the first quarter of 2021, it generated PLN 1.2 billion of net profit. It is the primary provider of financial services for all customer segments, achieving the highest shares in the savings market (18.3%), loans (17.6%), the mortgage loan market (19.7%) and the private investment fund market. (19.2%). Thanks to the development of digital tools, including the IKO application, which already has over 5.5 million active applications, PKO Bank Polski is the most mobile bank in Poland. The strong position of the Bank is strengthened by the companies of the Capital Group. Dom Maklerski PKO Banku Polskiego is a leader in terms of the number and value of IPO and SPO transactions on the capital market.

Szymon Pinderak

Press Center

prasa@pkobp.pl

+48 22 521 53 85

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