2022 Annual Report

Summary of the year

2022 Annual Report

Impact of the war in Ukraine on the operations of the PKO Bank Polski S.A. Group

On 24 February 2022, the Russian Federation (Russia) invaded Ukraine. The war is a strong supply shock for the global (mainly European) economy due to a limited supply and growing prices of energy, agricultural and industrial resources and broken supply chains. This is accompanied by the increased volatility of financial markets and increased risk aversion. The Western world’s response to Russian aggression has been to impose economic sanctions and seek to sever ties with the Russian economy as much as possible. The countries of the region, including in particular Poland, have provided shelter to millions of Ukrainian refugees.

In 2022, PKO Bank Polski S.A., together with its Polish companies in the Bank’s Group, supported Ukraine and its citizens, especially refugees. It raised funds and organised outreach events and prepared a package of financial services. In cooperation with the National Bank of Poland (NBP) and the National Bank of Ukraine (NBU), it carried out the purchase of the hryvnia. The Bank monitored developments in international sanctions imposed on Russia and other countries on an ongoing basis.

Companies that are members of the PKO Bank Polski S.A. Group, including KREDOBANK S.A. with its registered office in Lviv, operate in Ukraine.

In view of the war in Ukraine, the PKO Bank Polski S.A. Group:

  • conducted an analysis of customers in terms of their exposure to the negative effects of armed conflict:
    • measured the loan portfolio in Ukraine taking into account the area in which the customers operate and, depending on the level of limitation of operations or destruction of assets, recognised appropriate allowances – according to KREDOBANK S.A.’s estimates as at the end of 2022, 16% of the company’s loan portfolio is located directly in or close to areas of hostilities, including less than 3% in areas of temporary occupation or active hostilities;
    • stimated the value of the portfolio of business loans and leasing transactions of PKO Bank Polski S.A. and its Polish subsidiaries that is exposed to risk – taking into account customers who generate a minimum of 5% of their turnover with counterparties from Ukraine, Russia and Belarus, this value amounts to PLN 3.8 billion,
  • recognized additional allowances for credit and leasing exposures in the total amount of PLN 303 million.

PKO Bank Polski S.A. formed a Support Group whose tasks include preventing disruption to the critical processes of the Bank, exchange of information within the Group and coordination of the aid provided. The Bank takes actions to mitigate the threats on an ongoing basis, in particular with respect to ensuring access to the Bank’s systems and cyber security.

The geopolitical situation has or may have an impact on the current and future income of customers and, therefore, on the demand for new services and products offered by the PKO Bank Polski S.A. Group and the ability to repay financial liabilities already contracted. It may also have an impact on the amount and terms of future issues of securities of the Bank’s Group.

System for the protection of commercial banks

In June 2022, PKO Bank Polski S.A. and 7 other banks established a system for the protection of commercial banks, referred to in Chapter 10a of the Banking Law. The aim of the protection system is to ensure the liquidity and solvency of its participants, as well as to support the resolution regime carried out by the Bank Guarantee Fund (BGF).

As part of the organization of the system:

  • The Participating Banks formed the company System Ochrony Banków Komercyjnych S.A. (SOBK) as the system’s management entity with a share capital of PLN 1 million;


  • SOBK established an assistance fund to provide funds for the financing of the protection system’s tasks. The fund is financed by contributions from participating banks.

In 2022, PKO Bank Polski S.A. contributed PLN 956 million to the assistance fund and subscribed for 21,113 shares in SOBK with a total nominal value of PLN 211 thousand, representing 21.1% of the company’s share capital.

On 30 September 2022, the BGF decided to initiate the resolution procedure with respect to Getin Noble Bank S.A. At the request of the BGF, PLN 3.47 billion from the assistance fund was earmarked to carry out the resolution procedure for this bank.

Credit holidays and contributions to the Borrowers’ Support Fund

As part of the implementation of the Act of 7 July 2022 on the crowdfunding of business ventures and on assistance for borrowers, the PKO Bank Polski S.A. Group:

  • introduced the so-called statutory credit holidays, i.e. the possibility of suspending, for the repayment periods indicated in the Act, one mortgage loan or advance in PLN, which were intended for satisfying their own housing needs;
    • the Bank’s Group adjusted the gross carrying amount of mortgage loans by deducting interest income of PLN 3.1 billion.
  • made contributions in the total amount of PLN 313.6 million to the Borrowers’ Support Fund,

By the end of 2022, 285.7 thousand customers of the Bank’s Group applied for a suspension of their mortgage loan or advance repayment, and the total number of suspended instalments amounted to more than 1.8 million.

Adoption of the new strategy

The Management Board of PKO Bank Polski S.A. adopted the Bank’s strategy for 2023–2025 “Ready for the challenges, focused on the future”, as authorised by the Supervisory Board of the Bank. The new strategy involves leveraging the Bank Group’s competitive advantages: the scale of operations, digital and technological advancement as well as security and stability. The Bank’s efforts will be focused on people – customers and employees, as well as innovation and technology. For the first time, apart from financial goals, it also presents business goals. The Bank’s strategy, based on seven strategic pillars, also implies a much stronger commitment by PKO Bank Polski S.A. to ESG (Environmental, social and governance) goals.

Determination of target MREL levels

The Bank Guarantee Fund has set the minimum requirement for own funds and eligible liabilities (MREL) for PKO Bank Polski S.A.

The BGF has set a target MREL requirement for the Bank based on consolidated data at 15.36% of the total „TREA” risk exposure and 5.91% of the total „TEM” exposure measure, which must be met by 31 December 2023.

Eurobond issue programme

PKO Bank Polski S.A. has established a new Eurobond issue programme (the Euro Medium Term Notes programme – „EMTN Programme”) of up to EUR 4 billion. The EMTN Programme provides for the issue of unsecured Eurobonds in any currency, including those in respect of which obligations may be classified as eligible liabilities or as the Bank’s own funds. Bonds issued under the EMTN Programme will be registered with the international central securities depository (ICSD) operated by Euroclear Bank SA/NV or Clearstream Banking société anonyme. The Bank may apply for admission of individual series of Eurobonds to trading on a regulated market operated by the Luxembourg Stock Exchange and the Warsaw Stock Exchange.

In December 2022:

  • the Moody’s Investors Service rating agency assigned a (P)Baa3 rating to the EMTN Programme, for the unsecured bonds designated as Senior Non Preferred;
  • the Prospectus for the EMTN Programme was approved by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg.

On 1 February 2023, as part of the inaugural issue, the Bank issued 3-year Senior Preferred Notes with a total value of EUR 750 million, with the option of early redemption two years after issue. The coupon of the issue is fixed, at 5.625%, payable annually until the early redemption date, and variable thereafter, with quarterly payments. The bonds were admitted to trading on a regulated market on the Luxembourg Stock Exchange. The rating agency Moody’s Investors Service has assigned a rating of A3 to the issued tranche of bonds.

Business development

In 2022, the Bank’s Group developed products and services, including those offered via remote channels:

  • it began to gradually make available to customers a service that is innovative on the Polish market, “PKO Pay Later”, which enables purchases to be made within a limit set by the Bank and the liability repaid after 30 days;
  • it launched the Poland ClimAccelerator programme, which aims to search for start-ups, scale-ups and innovative companies operating in the field of green technologies that will be feasible for implementation in the Bank’s Group companies;
  • has made available the PowerB@nk start-up service, which provides support to entrepreneurs starting economic activities;
  • it has substantially increased the share of fixed-rate loans in new mortgage sales.

The number of active IKO applications exceeded a record high of 7.2 million on the Polish banking market at the end of 2022.

PKO Bank Polski S.A., operating in an environment of persistently high inflation and high interest rates, increased the attractiveness of its deposit offering. Efforts in respect of the following offerings were of significant importance:

  • the deposit for new funds, for which the interest rate was raised several times and at the end of December reached a maximum of 7.5% for a period of three months and 6.5% for a period of 12 months,
  • the term deposit, which was reinstated in the Bank’s branches for 6 and 12 months; the interest rate for the entire offering was raised to 2-4% regardless of the offering channel,
  • a 3-month mobile deposit available through the IKO app, for which the interest rate and parameters were changed several times to 6% and a limit of PLN 50 thousand,
  • the progressive 18-month deposit, for which the interest rate varied in successive saving periods, every six months, and at the end of December 2022 stood at 3%, 6% and 9% for each.

Strong sales of deposits to individuals helped to rebuild the market share of term deposits, which stood at nearly 24.2% (+1.0% y/y) at the end of 2022.

Financial performance

The PKO Bank Polski S.A. Group’s financial performance delivered in 2022 was significantly affected by regulatory and legal factors, i.e. the recognition of the effects of the Act on crowdfunding for business ventures and borrower assistance (so-called statutory credit holidays), the cost of legal risk of mortgages in convertible currencies and high regulatory costs.

Basic financial data of the Bank’s Capital Group (PLN million)

2022 2021 Change (y/y)
Net profit/loss 3,333 4,874 -31.6%
Net interest income 11,813 9,882 +19.5%
Net fee and commission income 4,951 4,377 +13.1%
Result on business activities 17,317 15,145 +14.3%
Administrative expenses -7,850 -6,117 +28.3%
Tax on certain financial institutions -1,266 -1,079 +17.3%
Net write-downs and impairment -3,523 -1,467 1.4x
Total assets 430,683 418,086 +3.0%
Total equity 35,435 37,693 -6.0%
Net ROE 9.7% 12.1% -2.4 p.p.
Net ROTE 10.8% 13.2% -2.4 p.p.
Net ROA 0.8% 1.2% -0.4 p.p.
C/I (cost to income ratio) 45.3% 40.4% +4.9 p.p.
Interest margin1) 3.90% 2.70% +1.2 p.p.
Share of impaired exposures 3.80% 3.98% -0.18 p.p.
Cost of credit risk 0.53% 0.55% -0.02 p.p.
Total capital ratio 17.78% 18.73% -0.95 p.p.
Common equity Tier 1 (CET 1) 16.65% 17.53% -0.88 p.p.
1) The interest margin in 2022 was calculated excluding the impact of the recognition in the third quarter of 2022 of the effects of the Act on on crowdfunding for business ventures and assistance for borrowers (so-called statutory credit holidays) of PLN 3,111 million.

The decrease in the net result was due to:

  1. deterioration in net write-downs and impairment of PLN 2,056 million as a result of:
    • recognition in 2022 of the cost of legal risk related to mortgage loans in convertible currencies of PLN 1,914 million;
    • a deterioration of net write-downs and impairment (excluding the cost of legal risk) of PLN 142 million, due to recognition of additional allowances due to the war in Ukraine in the amount of PLN 303 million, with lower credit risk allowances at the Bank and the PKO Leasing S.A. Group;
  2. an increase in administrative expenses by PLN 1,733 million, including an increase in regulatory costs by PLN 1,247 million (as a result, among other factors, of the recognition of an expense relating to the contribution to the assistance fund to System Ochrony Banków Komercyjnych S.A. in the amount of PLN 956 million and the cost of contributions to the Borrowers’ Support Fund in the amount of PLN 314 million), employee benefits expenses by PLN 253 million and material costs by PLN 202 million;
  3. an improvement in the result on business activities of PLN 2,172 million which reached PLN 17,317 million, mainly due to:
    • an increase in net interest income by PLN 1,931 million, despite the recognition in the third quarter of 2022 of the effects of the statutory credit holidays in the amount of PLN 3,111 million, caused by an increase in interest income related mainly to increases in market interest rates, with a simultaneous increase in financing costs;
    • an increase in net fee and commission income by PLN 574 million, driven by higher results generated on lending, insurance, leasing, cards, brokerage and foreign exchange transactions;
    • a decrease in other profit/loss by PLN 333 million, including mainly a decrease in net foreign exchange gains (losses) (as a result of the recognition in 2021 of a foreign exchange gain of approximately PLN 328 million following the decision of the Extraordinary Shareholders’ Meeting of the Bank of 23 April 2021 to offer settlements to customers and a deterioration in the gain or loss on foreign exchange transactions), with an increase in other net operating income and expenses (as a result, among other factors, of an increase in income from other leasing activities and the recognition of an expense on the sale of CO2 emission allowances in 2021).
In 2022, there was an increase in the scale of operations of the Bank’s Group:

Total assets
(+ PLN 13 billion y/y)
Amounts due to customers
(+ PLN 17 billion y/y)
Financing granted to customers
(- PLN 1 billion y/y)
  •  total assets reached the level of approx. PLN 431 billion (PLN +13 billion y/y);
  • amounts due to customers increased to approx. PLN 340 billion (PLN +17 billion y/y), mainly as a result of an increase in both retail and private banking deposits;
  • financing granted to customers amounted to approximately PLN 246 billion (PLN -1 billion y/y), with the decrease in financing in the retail segment being offset by an increase in financing granted to corporate customers; financing granted to customers, excluding the impact of gross carrying value adjustments related to statutory credit holidays and the recognition of additional provisions for legal risk of foreign currency loans, would amount to more than PLN 251 billion (PLN +4 billion y/y) at the end of 2022;
  • liquid assets (i.e. amounts due from banks, cash, balances with the Central Bank and securities from the banking book) amounted to nearly PLN 153 billion (PLN +10 billion y/y).

Prizes and awards for the PKO Bank Polski SA Group

In 2022, the PKO Bank Polski S.A. Group received many prizes and awards, the most important of which are listed below.


PKO Bank Polski S.A. has been awarded the title of „Bank of the Year 2022 in Poland” by the prestigious monthly magazine “The Banker”. A panel of international experts recognized the Bank primarily for its digitalization, which is one of the main directions of its development.

The “Bank of the Year” competition is organized by The Banker monthly, published by the Financial Times since 1926. When selecting the best bank, the competition’s jury analyzes business performance, strategic initiatives and key technologies, also related to the specifics of operating in a particular country.


In the 17th edition of the IT@Bank ranking, PKO Bank Polski S.A. was awarded in the „Innovation Leader according to IT companies” category. The IT industry recognized the Bank for fostering innovation, implementing cutting-edge technologies and setting the course for the digital revolution in the financial and public sectors.

The IT@Bank ranking is an initiative of Miesięcznik Finansowy BANK. Its aim is to award the persons, technological solutions and firms associated with the financial sector that make it more innovative.


PKO Bank Polski S.A. został potrójnym zwycięzcą 15. edycji rankingu Top Marka. Zdobył nagrodę główną – statuetkę Marka Marek 15-lecia, nagrodę Marka Marek 2022 i zwyciężył w branżowym zestawieniu. PKO Bank Polski S.A. był liderem kategorii banki we wszystkich 15 edycjach rankingu. W 2022 roku zwyciężył również w generalnym zestawieniu 500 marek z 50 branż.

Top Marka to największe badanie medialne w Polsce realizowane przez magazyn „Press” oraz Press-Service Monitoring Mediów.


PKO Bank Polski S.A. has been awarded the statuette of Environmentally Responsible Company 2022. The bank was recognized for its activities in support of environmental protection, particularly green financing. PKO Bank Polski S.A. consistently supports the green transformation of the Polish energy system and is a proven partner in green investment lending.

The award was granted by the economic editors of the Fratria Media Group.


In the competition, PKO Bank Polski S.A’s Voicebots won in the category for solutions supporting Contact Center operations.

The jury appreciated the extensive use of artificial intelligence (AI) and advanced analytics, the dynamic development of the project and its scale. The technology supports all customers on the inbound helpline and performs some of the processes on the outbound helpline.

The Polish Contact Center Awards is the most important competition of the Polish contact center and customer service sector, organized by the Polish Marketing Association SMB. It aims to recognize the best specialists, solutions and companies in the area of remote customer communication.


The competition’s jury awarded PKO Bank Polski S.A. a special prize in recognition of its relief efforts for war-affected Ukrainians.

PKO Bank Polski S.A. was recognized for its systemic commitment to the hryvnia exchange program, and was the only commercial bank to join the hryvnia-to-Polish zloty exchange campaign in cooperation with the National Bank of Poland and the National Bank of Ukraine. Also highlighted was the multifaceted operational and charitable support the Bank provides to war refugees from Ukraine.

The Leaders of the Banking and Insurance World Awards recognize personalities contributing to the development of the banking and insurance sector and the most effective institutions in the financial industry.


Summing up the results of 2021, the WSE granted the Broker of the Year 2021 prize to the Bank’s Brokerage Office (Biuro Maklerskie PKO Banku Polskiego S.A.).

The Bank’s Brokerage Office received the WSE award for the fifth year in a row. At the gala, the Brokerage Office was also awarded in the „Main Market” category for the highest share in session and block trading in shares, and in the „Catalyst” category for the highest share in bond trading.


In the 11th edition of the competition, IKO – the mobile app of PKO Bank Polski S.A. – won the main prize by winning the most votes (more than 15 thousand) from Internet users, who appreciated it for, among other things, its innovation, user-friendly solutions and dynamic development.

IKO is the most popular mobile banking app in Poland and one of the best-rated banking apps in the world, with an average score of 4.8 in 2021 based on reviews from more than 770 thousand customers.

The Mobile Trends Awards is a prestigious industry award. It is granted to companies that make successful use of mobile technologies.


In the „Most Credible in the Polish Economy” competition held by the ISBNews news agency, PKO Bank Polski S.A. was awarded the title of „Most Credible Financial Institution.”

The purpose of the competition is to recognize companies that contribute to the economic success of Poland, trusted partners in business, operating their business in a transparent and honest manner in accordance with the principles of corporate social responsibility. The panel recognized the Bank for its record financial performance, business development, as well as the implementation of advanced technologies and the rollout of remote service channels.


PKO Bank Polski S.A. has been awarded the prestigious Top Employer title for another consecutive year. Certification by the Top Employers Institute – the world’s leading authority on the survey of working conditions – confirms the Bank’s position as one of the best employers in Poland. This is demonstrated, among other things, by the Bank’s focus on fostering a work environment based on an open and engaging culture, focusing on development, integration and attention to wellbeing.

The Top Employer Certificate confirms that PKO Bank Polski S.A. offers working conditions on par with the best employers in the market and puts employees first in its organization. The results of the survey show that the solutions implemented by the Bank in terms of employee support, benefits, care for health and their well-being rank it among the top. In addition, the overall certification score has also improved year on year.


PKO Bank Polski S.A. economists won the „Parkiet” forecast competition. As in the previous edition of the competition – they ranked 1st in the main ranking for macro and market indicators combined, and won the macroeconomic indicator forecast ranking. The winning team beat 24 teams from other banks.

Accurate assumptions about the strength of the labor market and the smooth unwinding of pandemic losses in the economy, amid the heightened volatility and uncertainty that marked 2021, proved to be the foundation for success.


KREDOBANK S.A. maintained its leading position in the bank deposit reliability ranking of the „Standard-Rating” rating agency and, despite, the ongoing war in Ukraine, once again confirmed its credibility.

The ranking analyzed data from three quarters of 2022, including the bank’s capital, loan portfolio quality, liquidity, profitability and scale of operations.


In the 1st edition of „Dziennik Gazeta Prawna’s” Insurance Stars ranking, PKO Towarzystwo Ubezpieczeń S.A. won in the capital category, for its large increase in own funds and distinction in terms of assets.


PKO Leasing S.A. and Masterlease were awarded by BOŚ Bank for their contribution to the development of the „My e-car” program. During the 8 months of 2022, PKO Leasing Group S.A. registered the largest number of zero-emission cars of all leasing and CFM companies in the Polish market.

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