Financial results


Best Results in Financial Sector and Support for Growth of Poland’s Economy

  • The PKO Bank Polski Group earned an after–tax profit of PLN 2.87bn in 2016, once again coming out on top of the Polish banking sector.
  • With the growth of business, the Group reinforced its position of the unchallenged leader of the Polish banking sector.
  • The Bank has been growing while at the same time supporting its customers and performing projects fitting in with the new economic strategy of Poland.

The after-tax profit reported by the PKO Bank Polski Group for 2016 amounted to PLN 2.87bn and was the highest in the Polish banking sector. The PKO Bank Polski Group accounted for 21 per cent of the total profit of the Polish financial sector for that period, which is much more than its share of the sector’s total assets (c. 17 per cent). The consolidated business result reached PLN 11.8bn, or 10.6 per cent more than the year before, which was due to an increase in the loan portfolio and the securities portfolio, higher interest margins and a considerable reduction in the funding costs.

- In 2016, PKO Bank Polski once again achieved the highest results in the financial sector, while at the same time seeing to the laying of safe foundations for further expansion. The growth of the business of the Bank and its affiliates from the Group enabled us to reinforce our position of undisputed leader of the Polish banking industry. We support the growth of Poland and the Poles - said Zbigniew Jagiełło, President of PKO Bank Polski.

Strengthened Position of Undisputed Leader of Banking Sector

The total consolidated assets of PKO Bank Polski grew 7 per cent in 2016 to PLN 285.6bn. The contributing factors included an increase in the loan portfolio, which grew 5.4 per cent over the year, exceeding PLN 200bn. Total deposits also grew rapidly, reaching PLN 205.1bn at the end of 2016 (4.8 per cent up). Owing to the high sales of new loans, particularly mortgages, the Bank consolidated its high share of the lending market at 17.8 per cent. The market share was stable in both the corporate market and the retail one. This was also the case of the deposit market, in which the Bank has remained the leader with a stable share of 17.3 per cent.

Further Consolidation of Capital Position and Improved Quality of Loan Portfolio

2016 saw a further improvement in the equity ratios, which were significantly above the regulatory requirements. The total capital ratio improved by 1.2 pps and amounted to 15.81 per cent whereas the Tier 1 ratio grew 1.25 pps to 14.51 per cent. The high safety of the Bank was also confirmed by the stress tests conducted in 2016 by the European Banking Authority. They demonstrated that PKO Bank Polski is among the safest banks in the whole EU.

The positive trend in the quality of the loan portfolio continued. The cost of risk during the past 12 months amounted to 75 bps. The proportion of impaired loans decreased at the group level to 5.9 per cent from 6.6. per cent in 2015, while the impaired loans to impairment allowance ratio remained high, at more than 65%.

Strategy for 2016-2020: “We Support the Growth of Poland and the Poles”

Last year was not only marked by improved business ratios. It was also when a new strategy defining the growth goals for the period until 2020 was formulated. The strategy motto “We Support the Growth of Poland and the Poles” is put into practice in day-to-day customer service as well as in implementing long-term projects fitting in with the economic growth strategy of Poland. The principal direction of the change in the business model is set by the digitisation of the social life and its consequences for the customers of the Bank as well as the whole Polish economy. The key directions of the new business strategy include capital investments in innovative solutions and setting new market standards, collaboration with public institutions as part of the eState solutions and prevention of cyber threats.

Most Digitised Bank

With the customer needs and expectations in focus, in 2016, PKO Bank Polski continued a dynamic development of digital products and channels, including its flagship IKO application, which has been activated by more than one million customers to date. Being the most digitised bank on the market, it also engaged itself in projects which considerably enhanced the scale of digitisation of public services. PKO Bank Polski enabled its customers to submit applications for allowances under the 500+ Programme via the iPKO electronic banking platform. Over 300,000 Polish families took advantage of this option in the early months of its availability, meaning every third family filing the application online did it via iPKO. In cooperation with the Social Security Institution, the Bank enabled access through the same channel to the PUE ZUS system an offered an option to set up a Trusted profile in a simple, quick and secure manner.

First Bank to Have Invested in Fintech Start-up

Appreciating the potential of the innovative solutions developed by Polish scientists and young entrepreneurs, the Bank closely cooperates with and supports the Polish start-up community. Last year, PKO Bank Polski got involved, among other things, in the Start-up Weekend Warsaw and the MIT Enterprise Forum Poland Acceleration Programme, which had a path for fintech start-ups called “Let’s Fintech with PKO Bank Polski!”. Another stage of development of the cooperation with this community was marked by the acquisition, in early 2017, of the digital company ZenCard, which offers a platform for creating loyalty programmes for retail chains, shops and service establishments. Becoming the first Polish financial institution to make a direct investment in a fintech solutions, PKO Bank Polski set the direction for the other institutions in the market.

Broader Growth Support for Polish Companies

The PKO Bank Polski Group strengthens the market positions of its subsidiaries also by mergers and acquisitions, while also taking care of their stable organic growth. In December 2016, PKO Leasing successfully completed the purchase of Raiffeisen Leasing Polska from its Austrian owner, thus becoming the leader of the leasing market in Poland, with a market share exceeding 13 per cent. The business models of the two companies, whose merger is scheduled for the second quarter of 2017, are mutually complementary. Thanks to this transaction, the Bank will strengthen its position in the Small and Medium-Sized Enterprises segment and will considerably increase the scale of financing for the Polish businesses.

PKO Bank Polski also supports the expansion of Polish companies abroad by offering them a broad range of international banking products and preparing the launch of further corporate branches abroad, after Frankfurt am Main. In 2016, the Bank was completing the formal and legal requirements for the opening of a branch in Prague, which is scheduled to open at the beginning of the second quarter of 2017.


PKO Bank Polski is the indisputable leader in the Polish banking sector. In 2016, according to the consolidated data, its net profit amounted to PLN 2.87 billion, whereas the balance sheet sum reached PLN 285.6 billion. The bank is the basic supplier of financial services for all client segments and has highest share in the deposit market (17.3%) and loans (17.8%), including mortgage loans; every third mortgage loan is granted by PKO Bank Polski and PKO Bank Hipoteczny. Having 7.9 million pay cards, the Bank is the largest issuer of debit and credit cards in Poland with a share in the market on the level of 22%. Thanks to the development of digital tools, including the IKO app, which was already activated over million times, PKO Bank Polski has become the most mobile bank in Poland. The Bank’s strong position is reinforced by companies from the Capital Group. Dom Maklerski (Brokerage House) of PKO Bank Polski is the leader with respect to the number and the value of IPO and SPO transactions at the capital market. After the take-over of Raiffeisen-Leasing Polska, the Capital Group became a leader at the lease market, with a share on the level of 13%. Efficient implementation of growth strategy made PKO Bank Polski the highest positioned domestic financial company in the Forbes Global 2000 ranking, including largest listed companies in the world. In 2016, The Banker monthly magazine that belongs to Financial Times, awarded PKO Bank Polski with the “Bank of the Year in Poland” prize for the third time.