PKO Bank Polski applies to the Financial Supervision Authority (KNF) for a permit to set up a mortgage bank.
2014.02.13
Positive decision of the KNF will allow creating PKO Bank Hipoteczny, a new entity within PKO Capital Group, fully operative in late 2014 or early 2015.
PKO Bank Hipoteczny is going to deal with mortgage loans sale and post-sale servicing, based on an agency model operating within the retail network of PKO Bank Polski as well as through intermediaries or agents. The business model assumes close cooperation between both institutions through outsourcing of some functions.
According to preliminary assumptions, contribution of PKO Bank Hipoteczny in its new mortgage loan sales of the Group will not exceed 30%. A transfer of a part of current mortgage loans of the mother company to the new entity is also considered.
- Creating the new entity in PKO Group is not only an element of the bank’s strategy for 2013-15, which foresees putting its assets into order, the best use of synergies and creating of so-called product factories supported by the Bank’s operations, capital and distribution. It is also an important initiative to stabilize the banking sector thanks to reducing the liquidity gap; the initiative which may help to accelerate credit activity beneficial for the whole economy – Zbigniew Jagiełło, the CEO of PKO Bank Polski, said.
Issuing mortgage bonds addressed at institutional investors, mainly from Poland, will be the key source of financing for PKO Bank Hipoteczny. The first bond issue could take place in 2015.
- PKO Bank Hipoteczny will enhance the safety of the Capital Group, thanks to eliminating discrepancies in maturities between loans and deposits. It will also allow diversification of long-term financing thanks to lower issuance costs of mortgage bonds as compared to the costs of non-secured bonds – Rafał Kozłowski, the head of the PKO Bank Hipoteczny project, said.
