With the end of 2022, PKO Bank Polski S.A. has completed the development work under the strategy for 2020-2022 „PKO Bank of the Future”. The bank would have achieved its targets were it not for the negative impact of non-recurring factors in 2022.
Summary of the strategy
2022 Annual Report
The bank has the capacity to generate strong results and an attractive return on capital. However, 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.
Strategic goals of PKO Bank Polski S.A. for 2022
| 2019 | 2020 | 2021 | 2022 target | Level of achievement | |
| ROE | 10,0% | -6,0% adjusted: 7.1%* |
12,1% | 12,0% | 9,7% adjusted: 22.6%** |
| C/I | 41.3% | 40.9% | 40.4% | ~41% | 45.3% adjusted: 33.8%*** |
| COST OF CREDIT RISK | 0.46% | 0.78% | 0.55% | 0.60%-0.75% | 0.53% |
| NET RESULT | PLN 4.0 billion | PLN -2.6 billion adjusted: PLN 3.2 billion* | PLN 4.9 billion | > PLN 5 billion | PLN 3.3 billion adjusted: PLN 8.2 billion** |
| CAPITAL | TCR: 19.9% | TCR: 18.2% | TCR: 18.7% | capability to pay out dividend | TCR: 17.8% |
| Tier 1: 18.6% | Tier 1: 17.0% | Tier 1: 17.5% | Tier 1: 16.7% |
* Return on equity and net result adjusted for the recognized costs of the legal risk and other implications of the Extraordinary General Shareholders' Meeting of the Bank decision on entering into settlements with holders of foreign currency mortgage loans.
** Return on capital and net result adjusted for the impact of: the statutory credit holidays, the legal risk costs of mortgage loans in convertible currencies, the contributions to the System for the Protection of Commercial Banks (System Ochrony Banków Komercyjnych) and the Borrowers’ Support Fund, and the provision recognized for the reimbursement of increased margins until the mortgage is established.
*** C/I ratio adjusted for the impact of: the statutory credit holidays, contributions to the System for the Protection of Commercial Banks and the Borrowers’ Support Fund, and the provision recognized for the reimbursement of increased margins until the mortgage is established.
** Return on capital and net result adjusted for the impact of: the statutory credit holidays, the legal risk costs of mortgage loans in convertible currencies, the contributions to the System for the Protection of Commercial Banks (System Ochrony Banków Komercyjnych) and the Borrowers’ Support Fund, and the provision recognized for the reimbursement of increased margins until the mortgage is established.
*** C/I ratio adjusted for the impact of: the statutory credit holidays, contributions to the System for the Protection of Commercial Banks and the Borrowers’ Support Fund, and the provision recognized for the reimbursement of increased margins until the mortgage is established.
In 2022, PKO Bank Polski S.A. continued the process of the Bank’s intensive digital transformation. Efforts in this area were a priority for the Bank in both customer service and internal processes. The COVID-19 pandemic accelerated the transition of customers to remote channels. To meet these expectations, the Bank has focused on developing remote channels, increasing the availability of products and services in the digital model while ensuring high customer satisfaction. The IKO mobile app is the most popular banking app in Poland with a wide range of features. The Bank was consistently building an ecosystem of non-banking services provided in remote channels, including in particular the IKO app, which was extended by new functionalities. The Bank continued the optimization of its internal processes, which included a reduction in the operating expenses (through digitization, automation and robotics), and external processes, by increasing the use of artificial intelligence and robo-advisors. The newly implemented solutions make it possible to establish deeper relations with customers and ensure positive customer experience in all channels. The possibilities in this respect are supported by the innovations implemented and advanced data analytics.
Taking into account the changes in the market environment caused by the pandemic, PKO Bank Polski S.A. established the following priority areas and actions (as part of the implemented strategy) and continued them in 2022: Focus on the Customer – segmental approach to the offer and service model, personalized customer experience and building long-term relations, continued transformation of the network into the consultation and digital education centre for customers; Digitization – 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. Autonomous Bank – 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.
PKO Bank Polski S.A. is the undisputed leader of the Polish banking sector in both the individual and corporate segments, providing services to more than 11 million customers. The Bank has been building a long-term relationship with its customers by remaining the bank of first choice for 4.8 million primary customers, a year-on-year increase of 7% and 31% over the strategy horizon. The Bank is also the most mobile bank in Poland, providing services to 7 million users through the IKO mobile app, which delivers the best customer service experience confirmed by an average customer rating of 4.8/5. PKO Bank Polski S.A. won the Finnoscore 2022 ranking and became the European digital banking leader.
7 million
IKO mobel app users
4,8/5
Average customer rating of IKO mobile app
PKO Bank Polski S.A., together with its Group companies, supports Poland’s energy transformation by complementing its green product offering. In addition, the Bank is reducing the negative impact of its operational activities on the environment. For detailed information on the Bank’s achievements in this area, see Chapter 13.7.6.
The implementation of the Strategy for 2020-2022 has enabled the Bank to achieve high stability and safety indicators. The Bank is one of the safest banks in Europe according to the EBA’s 2021 stress tests, ranking fifth, and has one of the highest ratios of coverage of impaired loans by allowances overall among Polish banks.