Net interest income for 2022 amounted to PLN 11,224 million, i.e. PLN 2,513 million more than in the previous year. The y/y increase in the net income was mainly driven by an increase in income from financing granted to customers due to an increase in interest rates. This effect was partially offset by the recognition in the third quarter of 2022 of a non-recurring loss charged to interest income on statutory credit holidays that reduced income on home loans by PLN 2,443 million. Net interest income in 2022 was negatively affected by a decrease in hedge accounting income and an increase in interest expense on customer deposits, resulting mainly from increases in market rates for the PLN.
Interest income in 2022 reached PLN 18,524 million and was 102.1% higher than in 2021, largely as a result of:
- an increase in revenue from financing granted to customers by PLN 7,044 million y/y – mainly related to a 3.6 p.p. increase in the average interest rate on financing granted to customers. (excluding the impact of statutory credit holidays), with a change in the structure of the average volume of loan receivables (an increase in the share of business loans at the expense of other groups of loans, mainly foreign currency housing loans);
- higher income on securities (PLN +1,388 million y/y), mainly as a result of an increase in average interest rates resulting from rising market interest rates;
- lower hedge accounting income (PLN -411 million y/y), mainly as a result of the decline in average margins on IRS transactions following the interest rate hikes for PLN, which translated into negative results presented in interest expense.
Interest expenses stood at PLN 7,300 million, up PLN 6,847 million from 2021, mainly due to:
- increase in interest expense on deposits by PLN 3,486 million, mainly related to an increase in average interest rates on deposits associated with increases in PLN interest rates following the MPC’s decisions and changes in the term structure involving an increase in the share of term deposits bearing interest at higher rates;
- hedge accounting, which generated interest expense of PLN 3,142 million y/y, mainly as a result of a decline in average margins on IRS transactions following the interest rate hikes for PLN.
* The indicators in 2022 were calculated excluding the impact of the recognition in the third quarter of 2022 of the effects of the Act on crowdfunding for business ventures and assistance for borrowers (so-called statutory credit holidays) of PLN 2,443 million
The interest margin in 2022, excluding the impact of recognizing the effects of the statutory credit holidays in the third quarter of 2022, increased by 1.22 p.p. y/y to 3.82%.
The increase in the margin was driven by a higher return on assets, which was related to the increase in market rates in Poland, which translated to an increase in interest rates on assets to a greater extent than on liabilities. The return on assets was negatively affected by changes in the structure of interest-bearing assets (the share of receivables from banks, bearing interest at lower rates, increased at the expense of mainly the share of securities and the share of receivables from customers, bearing interest at the highest rates).
In 2022, the average interest rate on PKO Bank Polski S.A.’s loans was 7.6%, and the average interest rate on total deposits was 1.1%. In 2021, it was 3.5% and 0.1%, respectively.
Average interest rate of new term deposits in PLN (for individual clients and enterprises) in 2022 was equal to 4,8%.