PKO Bank Polski is on the rise! Another record quarter.

2021.11.08

The net profit of PKO Bank Polski Capital Group after three quarters of 2021 approximated PLN 3.7 billion and is almost 82% higher than a year before.
The Group expanded the scale of its operation. In the third quarter of 2021, its assets exceeded the level of PLN 400 billion and grew up to PLN 403.5 billion.
The Company has retained its quarterly profitability measured with ROE on the level of 12.1%.
PKO Bank Polski is building long-term relations with clients based on omni-channel service model. The share of digital channels in the sale of consumer loans has already reached 76%, and IKO mobile app has been activated 6 million times.

The PKO Bank Polski Capital Group generated record profits. The quarterly net result approximated PLN 1.3 billion, almost 77% more compared to the result a year before. Dynamic growth in the client financing made the assets of the PKO BP Group exceed the level of PLN 400 billion. The Company has retained profitability measured with ROE on the level of 12.1% thanks to the increase in income from primary activity, maintaining cost control in the conditions of inflation pressure and quarterly cost of risk on a level foreseen in the Bank’s strategy. PKO Bank Polski is continuing digitization and building long-term relations with clients based on the omni-channel service model. The share of digital channels in the sale of consumer loans is 76%, while IKO mobile app has been activated 6 million times.

After the three quarters of 2021, the capital group of PKO Bank Polski worked out almost PLN 3.7 billion net profit, while its assets exceeded PLN 400 billion. This means that we have stable foundations and strong competitive edges. However, observing the dynamics of change in the external environment, we intend to intensify our activities aimed at the ever-growing development of the capital group, thus meeting the expectations of all stakeholders. PKO Bank Polski is the guarantor of financial stability for millions of Poles and one of the drivers of the national economy. Therefore, we are soon commencing work on the new strategy of PKO Bank Polski, which will take into account experiences caused by the global pandemic and new challenges that the financial market is facing,”

says Iwona Duda, Vice-President of the Management Board of PKO Bank Polski, managing the work of the Board.

Another Record Quarter

The profit accomplished by PKO Bank Polski is once again the highest in over 100 years of history of the Company. A solid increase in the result on core business contributed to its achievement: the result from fees and commission in the third quarter exceeded PLN 1.1 billion and was 7.8% higher than a quarter before and 14.8% higher than a year before, while the net interest result grew by 3.7% q/q to the level of PLN 2.5 billion. Operating expenses amounted to PLN 1.5 billion, while the quarterly cost to income ratio in the third quarter of 2021 reached 39%, which means that its level is much better than assumed in the Strategy for 2020-2022.

Assets Exceed PLN 400 Billion

The Group’s assets grew up to PLN 403.5 billion thanks to an increase of client financing, which amounted to PLN 237.1 billion and was higher by 3.0% than a quarter before. Particularly strong growth took place in the area of retail loans. The dynamic of the new sale of retail loans reached 8.3% q/q and 40% y/y. Savings of clients continued to grow. Their total at the end of the third quarter of 2021 reached PLN 392.4 billion and was higher by 2.5% than at the end of the second quarter of 2021. Increased scale of operation of PKO Bank Polski is accompanied by a prudent approach to risk management. The quarterly cost of risk was 59 b.p., the share of non-performing loans remained on the level of 4.5%, while the level of coverage of such loans with reserves grew to 86%.

High Profitability and Strong Capital Base

The excellent results translated into the Group’s high profitability. The ROE reached 12.1% and was almost twice as high as a year before. The Bank retains a very strong capital base, while the TCR is 18.97% and is higher by over 7 percentage points than the regulatory requirements. The Bank’s high equity power was confirmed by the results of European stress tests, announced in July, which showed once again that PKO Bank Polski is one of the most resistant banks in Europe as far as an economic turmoil is concerned.

The Bank’s high equity surplus estimated at PLN 16 billion, high profitability and the process of concluding settlements on foreign currency mortgage loans foster conditions that allow for expecting payment of dividend in the years to come,”

said Iwona Duda, Vice-President of the Management Board of PKO Bank Polski, managing the work of the Board.

Further Digitization of Client Relations

PKO Bank Polski is continuing digitization and building long-term relations with clients based on the omni-channel service model. The share of digital channels in the sale of consumer loans has already reached 76%. Simple and massive activities are performed more and more often by robots using the AI solutions. They make up 80% of first contact services with clients via the Bank's helpline. They process several thousands of calls monthly, which allowed to Company to reduce approx. 100 FTE. The artificial intelligence also supports the actions of PKO Inwestomat. The Bank sells a half of its investment funds with the use of it.

The IKO mobile app assists in building digital experience of clients; it has been activated more than 6 million times. The Bank processes over 100 million transactions quarterly with the use of the app. Recently, the clients who do not have an account in PKO Bank Polski also have received the possibility of using it. This solution is going to help encourage new groups of clients to use IKO and expand the scale of operation even further. Since September, the clients have also had access to the entire offer of investment funds offered by PKO TFI and the services of the Brokerage Office via the mobile app. The participants of the Employee Capital Plans and Employee Pension Plans operated by PKO TFI may check the balance of their funds via the app.

Settlement Process Gains Speed

On 4 October, PKO Bank Polski launched a program of settlements for borrowers in Swiss francs. Since then, the Bank’s clients have submitted over 12,000 applications for mediation. The process is running very smoothly and has already resulted in the first annexes to loan agreements. The proposal of settlements is a response to the expectations of clients whose situation aggravated as a result of growth of the CHF exchange rate. The solution assumes conversion of the loan currency to PLN, as if it was a PLN loan since the very beginning. The settlements allow the clients to get totally free from the foreign exchange risk. They are a quick, convenient and secure alternative, comparing to the long-lasting and costly court dispute. The entire process is handled in a remote mode, while the borrowers come to the Bank branch only once - at the moment of signing the settlement.

Sustainable Business Development

PKO Bank Polski not only wishes to generate the best results for its shareholders as it has been doing so far, but is also additionally looking for possibilities to develop in an even more sustainable manner. Therefore, it incorporated the ESG indices into its non-financial goals. In observance of the previously adopted policy assuming tightening of the financing for the carbon intensive technologies and no new engagement in the coal mining sector, the Bank became liable for complete elimination of exposure to the coal mining sector by 2030. The Company also declared that it would increase the scale of green financing by at least by 5% y/y. The indices also include the Bank’s liability for curbing the emission of greenhouse gases to 40,000 tons in 2025, i.e. by 60% as compared to 2019. One of the announced goals - incorporation of the ESG standards into the purchase policy - has already been implemented.

***

PKO Bank Polski is the indisputable leader at the Polish banking sector; the value of its assets amounts to PLN 403.5 billion. In the first three quarters of 2021, it generated almost PLN 3.7 billion of net profit. The Bank services 11 million retail clients. It is the basic supplier of financial services for all segments of clients, having highest shares in the market of savings (17.8%), credit (17.5%) and the market of investment funds of natural persons (19.7%). Thanks to the development of digital tools, including IKO, which has been activated 6 million of times, PKO Bank Polski has become the most mobile bank in Poland. The Company reinforces its foreign presence via corporate branches operating in Germany, Czech Republic and Slovakia and via KredoBank operating in Ukraine.

Financial results

PKO Bank Polski has reported another good quarter. The results are a solid basis for the implementation of the growth strategy ‘Number 1 and full stop’.

2024.11.07

• PKO Bank Polski, the largest bank in Poland, increased its total assets to PLN 512 billion (+8.2% year-on-year) and the number of customers to 12.1 million at the end of September 2024.

Financial results

Strong growth in retail business, investments in new products and taking advantage of favourable market conditions resulted in a consolidated profit of PLN 4,4 billion. PKO Bank Polski has reported very good results and summarised its activities in the first half of this year.

2024.08.22

· In the first half of 2024, the PKO Bank Polski Group capitalised on favourable market conditions, generating a ROE of 19,0 per cent and an interest margin of 4,48 per cent while maintaining cost efficiency. The C/I ratio improved further to 30,5 per cent.

Financial results

12 million clients and 2 billion zlotys of net profit. PKO Bank Polski announces its results for Q1 2024

2024.05.09

The net profit of the PKO Bank Polski Group in the first quarter of 2024 amounted to PLN 2 billion and, excluding the cost of legal risk of the Swiss franc mortgage loans, to PLN 3,3 billion. The Bank steadily increased the scale of its operations and increased income fr...