Segments of activity

As at the end of 2021:

• total financing for Retail segment Customers exceeded PLN 183 billion and increased during 2021 by more than PLN 6.5 billion (i.e. 3.7%). This was mainly due to the growth of the portfolio of mortgage banking loans (+ PLN 3.2 billion), and retail and private banking loans (PLN +1.9 billion). In 2021, financing of companies and enterprises also increased (+PLN 1.4 billion);
• retail savings amounted to nearly PLN 354 billion and went up by PLN 41.8 billion (i.e. 13.4%) in 2021. An increase in retail and private banking deposits (of PLN 18.0 billion), and Treasury savings bonds (of PLN 14.4 billion) were the main contributing factors.

* taking into account insurance product liabilities

The Bank’s Group reinforced its position as market leader in terms of the number of checking accounts maintained (ROR). This number amounted to almost 8.5 million and went up by nearly 234 thousand during the year. It covers all active accounts, which constitutes growth potential for further cooperation with Customers.

In 2021, the Bank’s Group sold more than 433 million Treasury savings bonds (i.e. nearly 53% more than in 2020), and the debt in respect of the Treasury savings bonds issued to the domestic market amounted (at nominal value) to more than PLN 54 billion and was 36% higher than at the end of 2020.

* number of all active accounts with a potential for growth of cooperation with the Customer

* nominal value of savings bonds; source: Brokerage Office of PKO Bank Polski S.A.

In 2021, the PKO Bank Polski S.A. Group:

• with regard to housing loans:
  • granted loans to individuals for a record total of nearly PLN 16.6 billion, which allowed it to maintain top position on the market with a share of 19.8% throughout 2021;
  • enabled financing of up to 90% of the real estate value;
  • extended the offer of a “green mortgage” by two further years; based on delivering an energy performance certificate to the Bank for the property constituting collateral for the loan Customers may be charged a lower margin;
  • extended the offer to support borrowers with CHF mortgage loans until 31 December 2021 to limit the negative effects following from the changes in the exchange rate of CHF;
  • and on 4 October 2021, the Bank launched a programme of amicable settlements for Swiss franc borrowers.
• with regard to consumer loans:
  • it noted an increase of almost 1/3 on sales of consumer loans, rebuilding its portfolio in this loan category after the drop in 2020;
  • it implemented on-line authorization methods for 3D Secure 2.1 card transactions,
  • it implemented issuing credit cards to the Bank’s Customers based on the information on assets in other banks;

* source: ZBP, sale of PKO Bank Polski S.A. and PKO Bank Hipoteczny S.A.

• with respect to supporting operations and financing of companies and enterprises:
  • implemented the option to remotely sign loan contracts secured with the BGK de minimis guarantees and annexes to these contracts;
  • made available BGK de minimis guaranteed in electronic form; all de minimis aid certificates are generated in the form of electronic documents and sent to the email address of the borrower;
  • made available current account overdrafts up to PLN 500,000 with individualized maximum reference ratio; the new solution introduces the option to hedge against interest rate increases;
• with respect to the transactions and savings offer:
  • implemented a new process for remote opening of a checking account (ROR) – the Customer concludes an online contract, and a courier arrives at the Customer’s premises with a document to be signed;
  • introduced the possibility of concluding an agreement for opening and maintaining an account in the Bank’s branches by signing on a touch screen;
  • introduced quick transfers (30-minute) from Poland to Ukraine to an account with KREDOBANK S.A. on condition that the transfer is made from an account with PKO Bank Polski S.A.; in December 2021 more than 1,700 transfers were made for a total of PLN 2.1 million;
• with respect to service standards:
  • implemented the voice of a bot on the PKO TFI S.A. helpline to service participants in products like IKE, IKZE under the distributed Pension Packages.

As at the end of 2021 total financing of Customers from the corporate segment, including loans, bonds issued and lease receivables amounted to PLN 74 billion and increased since the beginning of the year by nearly PLN 5.4 billion (i.e. 7.8%). The increase in factoring receivables exceeded 86% y/y in consequence of increasing sales of new factoring limits, as well as an increase in involvement under the contracts concluded with Customers, to the largest possible extent, in reverse factoring.

* the item does not include bonds from international financial organizations

The level of savings of Customers from the corporate segment as at 31 December 2021 amounted to PLN 63 billion and increased by nearly PLN 17.8 billion from the beginning of the year, mainly due to an increase in current and term deposits. At the same time, in 2021 the level of investments in bonds issued by the Bank’s Group companies increased by almost PLN 0.5 billion.

In 2021, the PKO Bank Polski S.A. Group:

• with respect to Customer service and transaction banking:
  • implemented servicing of the Social Insurance Institute with respect to the 300+ Programme and prepared a solution for servicing the 500+ benefits;
  • implemented a metal PKO VISA Business Credit Premium card, which is the most prestigious business payment card available in the Bank’s offer;
• with respect to financing and banking services for public entities, it concluded:
  • more than 130 agreements for comprehensive servicing of local governments’ budgets, including, among others, of Kraków, Wrocław, Poznań, Elbląg and the Mazovian and Świętokrzyskie Voivodeships;
  • 98 agreements for the issue of communal bonds totalling nearly PLN 2.1 billion;
• with respect to financing the corporate segment Customers in the form of banking syndicates and bond issue underwriter,

it concluded:

• • 32 syndicated loan contracts for a total of PLN 18.6 billion, EUR 2.3 billion and USD 2.5 billion, in which the Bank’s share totalled more than PLN 2.6 billion, EUR 0.4 billion and more than USD 0.4 billion;
  • six corporate bond issues totalling PLN 5.8 billion and USD 0.6 billion;
• with respect to brokerage activities (conducted by the Bank’s Brokerage Office):

it conducted:

• • as a joint manager, sales transactions of Allegro.eu. S.A., shares worth approx. PLN 4.6 billion (according to the accelerated bookbuilding ABB procedure) on the primary market.
  • as a joint bookbuilder and offering agent, the IPO of Pepco Group N.V., shares worth approx. PLN 3.7 billion;
  • as a joint bookbuilder and an investment company intermediating in the offer, the IPO of STS Holding S.A. shares worth approx. PLN 1.1 billion;
  • as the sole global coordinator and bookbuilder, a sale transaction according to the ABB procedure, of BNP Paribas Bank Polska S.A. shares worth approx. PLN 471 million;
  • as a global coordinator and joint bookbuilder and an intermediator in the offer in Poland, the IPO of shares of Shoper S.A. with its registered office in Kraków, with a value of approx. PLN 363 million;
  • as a joint bookbuilder, the IPO of Captor Therapeutics S.A. worth approx. PLN 184 million;

it serviced:

• • almost 141 thousand securities accounts and cash accounts, as well as more than 371 thousand registration accounts;
  • Additionally, 425 participation units in funds and subfunds managed by 11 Investment Fund Management Companies;
• in the corporate segment of foreign Customers:
  • it engaged in new relations with Polish and European financial institutions (investment funds, payment and credit institutions) with respect to operational and settlement services of operations in Poland;
  • it started transactional cooperation with new banks, including NH Bank from South Korea and OP Pankki from Finland, which are the leading banks in their countries; it also won the tender for servicing Nova Kreditna Banka in Slovenia – a new entity which was established after the largest banking merger on the market;
  • it signed clearing agreements relating to making payments in PLN in the territory of the UK, the USA and China;
  • it enhanced a Cash Pooling service offered to global banking groups under Loro accounts opened with PKO Bank Polski S.A.

PKO Leasing S.A. implemented the PKO Leasing Online process which is available in e-commerce stores and lease servicing process for traditional stores. Both offers are addressed to business-persons to finance such objects as RTV equipment and domestic appliances, photographic equipment, bicycles, workshop equipment, and catering equipment.

The PKO Leasing S.A. Group introduced a new product – leases of passenger cars accompanied by their servicing. Under the Prime Car Management S.A. (PCM) service, Prime Car Management S.A. ensures organizational and logistics support, as well as the availability of several thousand Authorized Service Stations, car garages and collaborators from the automotive industry.

PKO Leasing S.A. and the PCM Group signed an agreement with Bank Ochrony Środowiska S.A. under the government programme “Mój elektryk” (“My electric Car”). Business Customers will be able to obtain subsidies to leases of electric cars via PKO Leasing S.A. Customers may obtain additional finance to electric cars of up to PLN 27 thousand, and official contacts are exclusively with PKO Leasing S.A.

PKO Leasing S.A. enabled signing contracts using electronic signatures to its Customers. It signed an agreement with Krajowa Izba Rozliczeniowa S.A. for the use of the mSzafir service with Autenti sp. z o.o. for providing services using software servicing electronic/qualified signatures.