Strategic directions and business priorities

In 2021, we consistently carried out activities aimed at strengthening our position in the highest profitable segments, i.e. consumer finance, micro-enterprises, SMEs and MID enterprises.

The goal in the area of current accounts (CAs) acquisition of individual clients set out in the Strategy at the level of min. 400 thousand CAs annually was achieved. In 2021, 443 thousand CAs were opened (+34 thousands more than the year before). In 2021, we recorded a high dynamics of sales of mortgage loans (+29% y/y) and sales of cash loans by +40% as compared to 2020. The increase in sales of cash loans took place in particular in remote channels, the sales dynamics reached the level of +79% y/y. The growth dynamics in terms of credit sales for micro-enterprises reached +46% y/y. In line with the Strategy, the Bank leveraged business synergies with the PZU Group, developing its product offer (including standalone travel insurance) and digitizing subsequent processes, which resulted in an increase in gross written premium by +58% compared to 2020.

Thanks to effective business activities aimed at strengthening the existing and building new competitive advantages in the SME segment, there was a significant acceleration in acquisition in this group of clients – the assumed strategic aspiration at the level of min. 2,200 new clients annually the Bank achieved after 9 months of the year. The growth dynamics of acquisitions in the SME segment was +54% y/y, and in the second strategic segment – MID enterprises it was + 47% y/y. At the end of 2021, the value of the loan portfolio in the SME segment was higher by +31% y/y, while in the MID segment it was higher by +23% y/y. From the strategic perspective, an important parameter is also the generated income per customer. In 2021, thanks to effective sales activities and the increasing number of products per customer, we recorded an increase of revenue per customer in both of the above segments: +20% (SME) and +8% (MID) respectively, above the 2020 level.

One of the strategic directions defined in the „Efficiency” pillar is the acceleration of digitalization and migration of processes to remote channels, which includes not only retail banking customers, and the development of the Peopay mobile application (as mentioned in the „Customer” pillar section), but also digital services for corporate customers. We have consistently developed the self-service zone for corporate clients in the PekaoBiznes24 electronic banking, providing clients with new processes, including submitting applications in the field of credit card service, PFR financial shield, closing sub-accounts. In cooperation with Tpay, the Bank offered clients a new service supporting the dynamically developing e-commerce segment – a payment gateway for online payments. In the first half of 2021, we implemented a new biometric remote method (“on a selfie” ) of verifying the identity of representatives of a potential client. This method, using solutions known from the area of retail banking, enables clients from the SME and corporate segment to establish relationships completely remotely, regardless of their legal form. The solution is intended for companies registered in Poland, represented by people with Polish identity cards

The development of remote distribution channels was accompanied by improvement in the effectiveness of the Bank’s branch network. In 2021, the Bank reduced its branch network by 63 units.

Our priorities also include improving the efficiency of credit processes. We implement processes related to the optimization and increasing the use of analytical tools in credit processes in every customer segment. These activities will bring tangible results in the coming quarters.

In order to maintain a safe risk profile in the changing market environment, we have consistently kept the costs of risk below the target level assumed in the Strategy (i.e. 50-60 bps). Throughout 2021, the cost of risk amounted to 45 bps, stabilizing at the pre-COVID level. At the same time, a significant capital surplus above the regulatory minimum was maintained, i.e. the Tier 1 ratio reached 16,9%.

In June 2021, the Bank adopted and announced the ESG strategy for 2021-2024, defining the goals connected to caring for the natural environment, supporting the development of the economy and society, and the bank’s sustainable development. The effects of the first 6 months of its implementation were presented in the non-financial report for 2021. In particular, the Bank is even more involved in the energy and ecological transformation of Poland and environmental protection, including active participation in the development of renewable energy sources (RES) sector in Poland, offering and organizing the issue of sustainable development bonds (ESG).