Development paths

Who we are – our mission:

“We support the development of Poland and the Poles”. For 100 years we have been delivering financial solutions to our Customers; therefore, we understand the needs of Poles and Polish firms. We are consistently changing, investing in development, and we responsibly implement modern technologies to enable easy finance management at any place or time. We are proud of our history and of our Polish roots. We wish to continue exerting a positive influence on Poland – its people, firms, culture and the environment. As one of the largest banks in Central and Eastern Europe we responsibly care for the interests of the shareholders, Customers, employees, and local communities.

Annual Report

Development strategy

The Strategy focuses on four pillars which PKO Bank Polski S.A. intends to develop and reinforce.

A digital banking model which uses advanced analytics to ensure personalized experience in Customers’ everyday life.

Using open banking possibilities, strategic partnerships and cloud solutions to propose innovative solutions to Customers.

Digitized processes with minimal manual service requirements, paperless. A fast and safe cloud-based Bank.

A motivated and committed team with competences adapted to the new business challenges, working smoothly, using state-of-the-art technologies.

Medium-term financial goals of the Bank defined in the Strategy for 2022 are as follows:

  • net profit over PLN 5 billion;
  • target ROE at the level of 12%;
  • C/I ratio at the level of approx. 41%;
  • cost of risk in the 0.60% – 0.75% bracket;
  • capability to pay out dividend.

The Strategy takes into account non-financial factors (ESG) relating to the environment, society and corporate governance.

PKO Bank of the Future:

  • is aware of the challenges resulting from climate change;
  • gradually eliminates actions that are harmful to the environment;
  • supports environmental education;
  • is driven by the principle of social responsibility;
  • takes into account the impact of its activities on society, Customers, suppliers, employees and shareholders;
  • improves its corporate governance;
  • ensures transparency of the principles of the Bank’s management.

Pursuit of the Strategy

The financial goals for 2022 defined in the Strategy were, in particular in 2020, under pressure from the COVID-19 pandemic and changes in the economic and regulatory environment, among other things, due to a drop in interest rates and the legal risk related to foreign currency mortgage loans, which had not been taken into account at the time of developing the Strategy.

The 2021 results indicate that the Bank has maintained the assumed profitability, high effectiveness of its operations and risk management, as well as strong capital position.

2019 2020 2021 2022 target Accomplishment degree
ROE 10.00% -6.0%
adjusted: 7.1%*
12.10% 12.00%
C/I 41.30% 40.90% 40.60% ~41%
Cost of credit risk 0.46% 0.78% 0.55% 0.60%-0.75%
Net result PLN 4.0 billion PLN -2.6 billion
adjusted: PLN 3.2 billion*
PLN 4.9 billion > PLN 5 billion realistic
Capital TCR: 19.9%             TCR: 18.2% TCR: 18.2% capability to pay out dividend realistic
TIER 1: 18.6% TIER 1: 17.0% TIER 1: 17.0%
* return on equity and net result adjusted for the recognized costs of the legal risk and other implications of the EGSM decision on entering into settlements with holders of foreign currency mortgage loans.

The COVID-19 pandemic intensified the Bank’s digital transformation process. There is an accelerated evolution of service models related to the integration of sales channels, so as to ensure Customers have access to the same products in digital channels as in the physical outlets. In the era of the pandemic, PKO Bank Polski S.A. focused on optimizing its internal processes and the resulting limitation of its operating expenses (digitization, automation and robotization). These are still very important factors: maintaining relations with Customers, high quality of service and innovations which the Bank implements to find new, non-interest sources of revenue. Such capabilities are enhanced by advanced data analytics and solutions relying on artificial intelligence and cloud technology.

As a result of changes in the market environment due to the pandemic, PKO Bank Polski S.A. designated, as part of its strategy, priority areas and actions for 2021.

A segmented approach to the service offer and model, personalized experiences of the Customer and building long-term relationships, further transforming the network into an advisory centre and digital education for the Customers.

Ensuring that Customers have an omnichannel access to banking products and services, increasing sales through remote channels, developing functions and innovations in IKO mobile banking, enhancing CRM and advisor tools, intensifying the use of advanced data analytics, the Road2Cloud Project and constructing a modern platform for electronic channels, including its high accessibility, scalability and security.

Accelerating the automation and robotization of processes, increasing the number of processes performed fully digitally, “slim” outlets and an effective service model, simple and convenient offer and communication with the Customers, increasing the use of AI in sales and service processes, and in the organization’s internal processes.

6.1 million
Active IKO users
4.5 million
Primary customers (increase y/y by 9%)

In June 2021, the Management Board and the Supervisory Board adopted indicators to be achieved in the ESG area and included them in the Bank’s Group’s non-financial goals for the following years.

PKO Bank Polski S.A. undertook to reduce greenhouse gas emissions, eliminate exposure to the coal mining sector, increase green financing, take into account the key ESG aspects in its procurement processes, maintain the high participation of women in executive positions, low churn and voluntary terminations, and performance of projects which support the employment of disabled persons.

Information about meeting the key non-financial indicators in 2021 is included in the statement on non-financial information in chapter ‎13.3 Key non-financial performance indicators.

The Bank will continue its work on subsequent ratios and non-financial goals connected with the ESG area, and challenges connected with sustainable development will be included more extensively in its next strategy.

PKO Bank Polski S.A. is the undisputed leader of the Polish banking sector and the most mobile bank in Poland, providing services to more than 6 million users via its IKO mobile application. The Bank builds its long-term relationship with its Customers and remains the bank of first choice for 4.5 million primary Customers (an increase of 9% y/y).

In accordance with the Strategy assumptions, PKO Bank Polski S.A. has been building competitive advantages using its technological potential, which considerably extends beyond the traditional financial area. It cooperates with the fintech market leaders and initiated the establishment of Operator Chmury Krajowej sp. z o.o., with which it builds strategic partnerships with worldwide technology leaders – Google and Microsoft.

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