Annual report 2021
Bank in 2021
In 2021, we generated the net profit of the Bank Pekao S.A. Group attributable to the Bank’s holders at the level of PLN 2,174.9 million i.e. at the level of the net profit generated in 2019, before the pandemic. Net profit was higher by PLN 1,073.2 million, i.e. 97.4% y/y than the netprofit achieved in 2020, mainly due to higher operating income and lower net allowances for expected credit losses, which are gradually normalizing towards the levels observed before the pandemic.
ROE IN 2021 AMOUNTED TO 8.7%,Y/Y.
Despite the COVID-19 pandemic, we increased the scale of our commercial activities, actively supporting clients’ financial liquidity and focusing on further digitizing and automating processes, and implementing advanced digital solutions. We focused our activities in the following key strategic areas (in accordance with the adopted Strategy for 2021-2024).
In 2021, we opened 443 thousand, new accounts (Konto Przekorzystne and Konta Świat Premium), which is an increse of +8.3% compared to 2020.
In the fourth quarter of 2021, we opened nearly 145 thousand new accounts.
Thanks to commercial activities, our balance sheet total increased by 7.4% y/y (to the level of PLN 250 billion) Loans and advances at nominal value were higher by 11.5% y/y and amounted to PLN 169 billion, mainly due to an increase in mortgage loans and the corporate segment, as well as due to the acquisition of Idea Bank assets. There was also a strong increase in volume in retail deposits, including the net assets of investment funds managed by Pekao S.A. by over 4.8%y/y.
The cost of risk has regained its pre-coronavirus pandemic level of 45 bps. We maintained the solid capital base (TCR amounted to 16.9% as at the end of December 2021) and the safe liquidity profile reflected by net loans to deposits ratio at 83.3%. This, together with high level of capital, enables for further solid and stable development of the Group’s activities.
In 2021, the operating costs including contributions and payments to the Bank Guarantee Fund amounted to PLN 4,028 million and were higher by PLN 197 million i.e 5.1% than in 2020, mainly due to the integration costs resulting from the acquisition of a separate part of Idea Bank, the rebuilding of variable salary costs and the growing depreciation, which is related to investments into the transformation of the Bank. The dynamics of costs was consistent with the assumptions of the Strategy.
We continued our activities undertaken in 2020 in connection with the COVID-19 pandemic, actively supporting clients in maintaining financial liquidity, accelerating the digitization of processes and actively encouraging clients to use remote channels in everyday banking.
We monitor the economic situation in the country and in the world on an ongoing basis. The various scenarios for the development of the epidemic and its impact on the economy are analyzed, as well as the best solutions that the Bank can adopt.
„Responsible Bank. Modern banking” is the new our strategy for the years 2021-2024, announced in March 2021. According to the strategic plan, we:
In the near future, we will update our financial targets announced in the Strategy 2021-2024 in connection with changes in the economic environment and an increase in interest rates.
