Bank Pekao S.A. on the Polish banking market

new functionalities of the PeoPay and Pekao24 applications:

• a new self-service „I forgot my Pin” process on the PeoPay login screen, thanks to which the customer can regain access to the application himself,
• the process of selling a housing account for children 13+ in the Parent Panel,
• ability to redirect the customer during service by an employee to the PeoPay application or Pekao24 website – to any screen in the application or in website, including sales processes,
• a new version of the currency exchange office,
• new features in transfers: execution of Sorbnet instant transfer, execution of split payment with a future date
• open and hidden split payment, transfer between the accounts of a natural person and those run as a sole proprietorship,

rozwój funkcjonalności dla firm w PeoPay i Pekao24: 

• ability to update company data from PeoPay and Pekao24,
• application for an auxiliary account in PLN and foreign currencies for clients who are sole proprietorships,
• launching the Merchant Portal for companies leasing terminals, which enables handling payments and settlements of payment transactions,
• notifications for corpora

safety-enhancing features:

• possibility of verifying the identity of a Bank employee in the PeoPay application and the Pekao24 website by the customer during a telephone conversation,
• device counter allowing to install PeoPay on a maximum of three devices,

process improvements in PeoPay and Pekao24:

• improvements in complaint processes,
• providing new landing pages for applications for co-financing for a nursery, family care capital and a trusted profile

PeoPay and Pekao24 personalization and ergonomics:

• ability to set application background and avatars in PeoPay,
• new card images,
• simplifying navigation in Pekao24 – creating a profile menu and switching the context between individual and company profiles.

In 2023, we achieved the best credit card sales result and recorded a +65% increase y/y. At the end of 2023, over 125 thousand people used the Żubr Credit Card customers. Numerous promotions encouraged the use of payment cards, including the Mastercard Bezcenne Chwile program, in which customers could gain additional points worth up to PLN 800 (in the spring edition) and PLN 600 (in the autumn edition), and the Holiday Lottery, in which holders of debit cards and Mastercard credit card users could win vouchers for a dream trip worth PLN 30 thousand every week, electric bikes and vouchers for purchases in a popular chain of sports stores. Nearly 100 thousand customers took part in the Lottery.

Also in 2023, we recorded an almost 6-fold increase in credit card sales to business customers, including: thanks to the implementation of a new card sales process and an attractive offer, including: MOTO Biznes cards with a promotional interest rate of 9.99% and reimbursement of expenses for payments at gas stations of up to PLN 600 per year.

In 2023, the value of cash loans granted measured by net volume increased to PLN 5.2 billion, i.e. by +16.4% compared to 2022. In terms of the volume of signed contracts, sales increased by +20.1% to PLN 5.7 billion and was higher than the growth dynamics in the banking sector of +13.7%.

In 2023, sales of cash loans in electronic channels reached a record result of PLN 3.8 billion and were higher by +31% y/y, while in the fourth quarter of 2023, 85% of cash loans were concluded in electronic channels. This was possible thanks to the development and increasing the availability of remote credit processes. For new customers who have not yet had any product in our Bank, we have made available on the Pex Prospekt website (pekao24.pl) the possibility of obtaining a loan online using remote selfie authorization or as part of open banking.

We supported loan sales with advertising campaigns „Weź wygodną pożyczkę gdzie chcesz i na co chcesz ” on TV, VOD, the Internet, social media and the Bank’s electronic channels.

In 2023, sales of Loans in the account increased by +31% compared to newly concluded contracts in 2022, thus reaching the number of 40.9 thousand concluded new contracts with customers.

We are the only one in Poland, in cooperation with Bank Gospodarstwa Krajowego, to grant a loan to finance tuition fees for paid medical studies. Students can benefit from interest subsidies, loan guarantees, and full or partial loan forgiveness. By the end of 2023, we have concluded nearly 3 thousand loan agreements and disbursed PLN 133 million of loan tranches.

In 2023, sales of housing loans amounted to PLN 10.4 billion and were at the record level seen in 2021.

In 2023, we strengthened our market position and took second place in the banking sector in terms of the sales volume of mortgage loans throughout the year, and in August, thanks to the very good start of the 2% Safe Loan offer, we achieved first place.

We were one of the first banks to introduce Safe Credit 2% as part of the government program „First Apartment”. The loan was very popular among customers, who deposited over 51 thousand number of applications which constitutes 50% of all applications obtained in the entire banking sector. The total volume of contracts signed at the end of 2023 was PLN 7.2 billion.

We have adapted and updated our mortgage loan offer on an ongoing basis to changing market conditions and needs. As part of the „Mieszkanie bez wkładu własnego” program with a guarantee from Bank Gospodarstwa Krajowego, we changed the conditions and enabled a wider group of customers to apply for financing and offered attractive price conditions.

At the beginning of October, the Bank’s offer also included a new offer of settlements for borrowers with active housing loans denominated in CHF, which are in the Bank’s portfolio almost entirely as a result of the merger of a separated part of Bank BPH SA in 2007. The program met with great interest, nearly 70% of customers who have responded to the Bank’s offer so far have accepted the settlement proposal.

In 2023, we transferred some mortgage loan receivables to Pekao Bank Hipoteczny. The total number of loans transferred so far is over 9.8 thousand worth PLN 1.9 billion.

In 2023, in the area of bancassurance, we implemented projects extending the availability of the offer to customers in various distribution channels and related to the process of easy renewal of motor insurance for the next period. Sales of motor insurance and life insurance are available in all channels. We provide credit card insurance to private segment customers.

In 2023, we collected +14.6% more premiums from the sale of protection insurance than in 2022. We recorded great dynamics in cash loan insurance, with 21.3% more premiums y/y and a 3-times increase in sales of travel insurance. The share of mortgage loans sold with insurance (for which insurance could be offered) remained at a stable high level of 92%, and in the case of cash loans it amounted to 40% (an increase y/y by 1.6 percentage points).

In the area of assurbanking, we have consistently worked on expanding the scale of operations by implementing the Bank’s product acquisition processes in subsequent PZU branches. In 2023, we acquired 10% more customers in the assurbanking area compared to 2022.

At the end of December 2023, the total value of deposits held by individual clients (including Private Banking clients) and business clients amounted to PLN 145.1 billion, an increase of PLN +3.3 billion (+2%) compared to the end of September 2023, and PLN +14.5 billion (+12%) compared to December 2022.

In 2023, promotions on savings accounts and Mój Skarb accounts were popular among new individual customers. The total balance of funds deposited in these accounts increased by PLN 2.4 billion (over +18%) during the year. Customers also set up a record number of over 250 thousand new savings accounts and Mój Skarb accounts. Customers expecting higher income from deposited funds and accepting the possibility of investing part of their savings in investment products chose the Investing Deposit, which automatically transfers funds from a term deposit to an investment fund selected by the customer. By the end of 2023, customers had invested over PLN 3 billion on this deposit.

We actively offered a new savings product, Konto Mieszkaniowe, which was implemented as part of the new government First Apartment Program. By the end of 2023, we opened over 2 thousand such accounts.

In 2023, we also started selling State Treasury Bonds in the Bank’s branches. Total sales in all channels amounted to close to PLN 9 billion.

In the area of investment products, we achieved the highest net sales in history of PLN 11.5 billion.

In the end of 2023, we introduced the following investment products to our offer for individual clients:

• Structured product with full capital protection on the redemption date in PLN: Capital Protection Certificate Linked to Shares of BMW AG and Volkswagen AG for 1 year and 3 months/1 year and 6 months in PLN,
• Structured product with full capital protection at maturity in EUR/USD: Two-Year Bond with 100% Worst Of Capital Protection Linked to shares of Carrefour SA and TotalEnergies SE in EUR/USD,
• Structured product with full capital protection on the redemption date in PLN: Capital Protection Certificate Linked to shares Walmart Inc. and Siemens AG for 1 year and 6 months in PLN,
• Two-year Certificate with 100% Capital Protection Only at Worst Of Maturity Linked to shares of NESTLE SA and HEINEKEN NV,
• Two-year Worst Of Certificate Linked to Shares of L’Oreal SA and Roche Holding AG with Capital Protection Only at Maturity in EUR/USD,
• Structured product with full capital protection on the redemption date in PLN: Capital Protection Certificate Linked to Advanced Micro Devices and Microsoft Corporation Shares for 2 years in PLN,
• Structured product with full capital protection on the redemption date: Two-Year Certificate with 100% Capital Protection Only at the Worst Of Maturity Date Related to LVMH MOET HENNESSY LOUIS VUITTON SE and CIE FINANCIERE RICHEMONT SA Shares in PLN,
• Structured product with full capital protection on the redemption date in PLN: Certificate with Capital Protection Linked to Alphabet Inc. Shares.
• Class A, Microsoft Corporation and Nvidia Corporation for 1 year and 3 months in PLN,
• Structured product with full capital protection on the redemption date in PLN: Annual Certificate with Capital Protection Linked to Shares of Samsung Electronics Co., Ltd., Apple Inc. and Nvidia Corporation in PLN,
• Structured product with full capital protection at maturity in USD: Two-Year Certificate with 100% Capital Protection Only at Worst Of Maturity Linked to Samsung Electronics Co Ltd and Alphabet Inc Class C Shares in USD,
• Structured product with full capital protection at maturity in EUR: Two-Year Certificate with 100% Capital Protection Only at Worst Of Maturity Linked to Shares of Tesla Inc and Toyota Motor Corp in EUR,
• Structured product with full capital protection on the redemption date: 15-month Share-Linked Certificate: Mercedes-Benz Group AG, Pfizer Inc and Ubisoft Entertainment SA with Capital Protection Only at Maturity in PLN,
• Structured product with full capital protection on the redemption date in PLN: Certificate with Capital Protection Linked to shares of McDonald’s Corporation and Nestlé S.A. for 2 years in PLN,
• Structured product with full capital protection on the redemption date in PLN/EUR: Capital Protection Certificate Linked to share Airbus SE and FedEx Corp., for 2 years,
• Structured product with full capital protection on the redemption date in USD/PLN: 2-year Certificate with Capital Protection on the Redemption Date Linked to shares MasterCard Inc. and Visa Inc., in USD.

We have prepared preferential price conditions for clients purchasing investment products via Internet applications and actively encouraged clients to use remote channels for their ongoing service.

In 2023, the dynamics of the loan portfolio volume was +3.6% y/y, which translated into an increase of +PLN 1.2 billion.

The increase in the value of the financing portfolio volume is visible both in the segments of bank loans, leasing and factoring. In 2023, the value of new loans sold (without renewals) in the SME segment reached PLN 6.9 billion, maintaining the high level from the previous quarters and 2022. In the MID segment, the value of new loans sold (excluding renewals) amounted to PLN 14.0 billion.

As part of cooperation with the Agency for Restructuring and Modernization of Agriculture, we have introduced two new loans to our offer: liquidity and purchase loans. They will allow for comprehensive support for farmers, including: on the use of subsidized interest on loans and securing the repayment of loans granted to finance part of the investment costs with a guarantee or surety (purchase loan) or counteracting the threat of loss of financial liquidity due to restrictions on the agricultural market caused by the aggression of the Russian Federation towards Ukraine (liquidity loan). The interest rate on these loans is 2% per annum.

We have maintained a high level of new customer acquisition, in the SME segment we acquired over 3 thousand customers and over 700 new customers in the MID segment.

In 2023, we launched an application thanks to which internal processes related to acquisition and product parameterization for new customers were automated.

In 2023, we developed the PekaoBiznes24 self-service zone, launched a fully automatic process of managing access to the card module, in which we made PIN distribution available to the user’s phone via SMS. We have modified the handling of the auto-withdrawal product and introduced additional options for managing ordered transfers in foreign exchange. We have also improved the management of personal data of electronic banking users, including granting authorizations to new electronic banking users.

is focused on the continuous development of modern digital tools that support the activities of analysts, relationship managers and clients. In business areas, we engage in projects related to a responsible approach to the way in which business activity is conducted. We are also developing international banking and supporting the foreign expansion of our clients.

While strengthening our effectiveness we focus on increasing the level of robotization and automation of internal processes as well as solutions available to clients. We are also continuously expanding the scope of self-service operations in digital channels and we are implementing more products available to corporate clients for online purchase.

We are invariably building a customer-centric culture and we want to be the first choice bank for our clients. Therefore, we try to quickly and accurately recognize their needs. We provide advise based on our knowledge of client’s profile, industry and segment. We try to increase the level of satisfaction of clients with their interaction with the Bank.

Supporting sustainable economic development, we engage in private as well as in government and EU programs for economic recovery and climate transformation. An important area of our activity is also the cooperation with public sector entities, where, in addition to green investments and infrastructural projects, we are involved in financing socially responsible projects which have a positive impact upon the living standard of Poles.

The fundamental of our business is responsible capital management. We do this relying on sector expertise, a flexible and specialized product offer, unique competences in structuring financing and extensive opportunities to operate on Polish and foreign financial markets. Such knowledge allows us to rationally and maturely select customers and the most appropriate products and transactions.

Cooperation with financial institutions and custody services

The Bank holds a leadership position in servicing domestic financial institutions, focusing on providing the highest quality services to insurance companies, investment funds, brokerage houses, financial sector infrastructure entities, cooperative banks as well as savings and credit unions. The range of services includes modern transactional banking products, clearing products, treasury products, custody services and services of depository bank, as well as the access to the comprehensive offer of the Pekao Group entities addressed to this segment of clients.

In 2023, jointly with Pekao Leasing Sp. z o. o., we obtained financing to support Polish micro, small and medium-sized enterprises, in which we acted as the arranger and underwriter of financing:

• EUR 150 million from the European Bank for Reconstruction and Development (EBOiR) to support Polish enterprises affected by the effects of the Russian invasion of Ukraine, whereas 60% of the loan will finance green investments including, among other things: improvement of energy, resource and water efficiency, renewable energy and waste minimization,
• EUR 100 million from the Council of Europe Development Bank – to finance the purchase of fixed assets and production equipment necessary for their core activities of enterprises,
• EUR 68 million from the European Investment Bank – under this agreement, at least 20% of the funds are to be allocated to investments supporting climate protection and sustainable development of environment,
• PLN 300 milion from Bank Gospodarstwa Krajowego for the purchase of vehicles, production lines, machines and equipment.

The Bank cooperates extensively with banks from all over the world. We have over 1.3 thousand exchanged swift keys, direct or indirect access to the most important settlement systems, nostro accounts and we run loro accounts for a very large group of foreign banks. The Bank has infrastructure ensuring efficient foreign settlements in the 19 most important currencies.

In 2023, we maintained our leadership position in trade finance among banks in Poland. We recorded an increase in the number of completed documentary transactions and guarantees. We were consistently developing financing programs for suppliers with which our key clients cooperate, especially from the clothing, footwear industry and FMCG retail chains.

The amount of newly granted guarantees and sureties rose by nearly 47% in 2023, whereas the exposure resulting from active transactions at the year-end was higher by 22% in comparison with 2022. The Bank financed invoices under the Open Financing Platform (OFP) in the total amount of nearly PLN 2.3 billion higher than in 2022. At the end of 2023, we launched the first version of a new back-office system that supports units handling bank guarantees

The Bank granted loans and prepared comprehensive offers for short and long-term financing and the offers for hedging risk of international transactions, supporting the expansion of Polish enterprises on both European markets and in developing countries. The Bank’s clients can take advantage of the package of the most beneficial financial solutions adjusted to the model of the conducted business activity.

In 2023, we signed an agreement with the National Chamber of Commerce aimed at supporting Polish entrepreneurs in activities related to the development of Polish exports and assistance in international economic expansion. We want to provide the entrepreneurs with access to the coordinated substantive care, expertise as well as financial and non-financial solutions supporting expansion into foreign markets, including African markets.

We offer our clients the services in the field of investment banking, structured finance and financing of commercial real estate projects, including financing of the construction of warehouses.

The key projects financed by the Bank in 2023 include:

• participation in a syndicated loan related to sustainable development goals for one of the largest groups operating in the media and telecommunications industry. The financing amounted to over PLN 10 billion,
• financing provided for modernisation and development of the fiber optic network. Syndicated loan in the amount of PLN 5.1 billion,
• syndicated loan in the amount of EUR 800 million granted to a leading international group from the catering industry,
• a loan in project finance formula for the total amount of PLN 2.64 billion granted by the consortium of banks for the construction of a gas and steam block,
• participation in a consortium of financial institutions and granting a loan for the total amount of PLN 2.5 billion related to sustainable development of the borrower,
• increasing the amount of financing up to PLN 1 billion for an entity from the automotive industry,
• increasing the amount of overdraft facility up to PLN 1 billion for one of the top companies from the energy industry,
• a syndicated loan for the amount of EUR 125 million granted for refinancing the investments for development of a shopping centre in Warsaw,
• a loan for building a logistic centre in eastern Poland. The financing amounted to EUR 43 million,
• a loan for the amount of EUR 25 million granted to a leading company operating in the food industry for modernisation of production plant,
• an investment loan in the amount of EUR 16 million for launching a factory in a company from paper industry, “green” financing,
• financing provided for the project of apartments for rent. The amount of financing was PLN 133 million. The Bank is consistent in supporting this segment of commercial real estate market,
• investment financing in the amount of PLN 95 million granted for building a wind farm. The project is being implemented with a leading company from the energy industry,
• working capital financing in the amount of PLN 80 million granted to an entity from the biofuels sector,
• increasing the line for guarantees from PLN 550 to 700 million for the key entity from the construction industry,
• participation in a syndicated loan to finance and refinance the expenditures related to the ongoing investment program of a client from the construction materials industry. The Bank’s participation is EUR 90 million. The Bank was the loan agent and security agent.

In 2023, the Bank participated in issuance of non-treasury debt securities (of corporate entities, banks and municipal units) for the total amount of more than PLN 51 billion, of which the following transactions deserve special attention:

• the issue of three series of MREL Bank’s own bonds: 2-year (2NC1) senior preferred securities for the amount of PLN 750 million, 4-year (4NC3) non-preferred senior securities for the amount of PLN 350 million and 3-year (3NC2) nonpreferred Bank’s own bonds for the amount of PLN 750 million, which the Bank carried out on its own,
• the issue of 4-year (4NC3) green senior non-preferred Eurobonds of the Bank for the amount of EUR 500 million. The Bank also acted as the co-bookrunner. The funds obtained from the bonds issue will be used for financing or refinancing of projects qualified in accordance with the Bank’s Sustainable Finance Framework,
• the issue of two series of sustainability-linked bonds for the total amount of PLN 3.49 billion for the biggest provider of integrated media and telecommunication services in Poland with maturity date in January 2030. The Bank was a coarranger and co-bookrunner. The bonds will finance the implementation of the development strategy of the issuer’s group, including the construction of assets producing clean energy and green hydrogen, and they are based on sustainable development goals,
• the issue of 7-year Eurobonds for a leading multi-energy company in Poland for the amount of EUR 500 million, where the Bank was a global coordinator for Poland and co-bookrunner
• the issue of three series of Eurobonds in the total amount of PLN 1.4 billion for an international financial institution, in which the Bank was the sole arranger, including the issue of Climate Awareness Bonds for the amount of PLN 400 million. The proceeds obtained from the issue are to be used for the issuer’s lending activity which significantly contributes to limiting climate change in terms of eliminating or reducing greenhouse gas emissions,
• the issue of 5-year Eurobonds for an international group from retail industry for the amount of EUR 375 million in which the Bank was the passive bookrunner,
• the issue of two series of bonds for a company owned by an international automotive concern for the total amount of PLN 1.24 billion, where the Bank was the sole arranger and dealer,
• the issue of two series of 6-year bonds for the leading company from the asset recovery industry for the total amount of PLN 570 million in which the Bank was the leader of the consortium,
• the issue of 3,5-year and 3-year green bonds of a company owned by an international development group for the total amount of PLN 520 million in which the Bank was a co-arranger and dealer. The proceeds from the issue will be allocated exclusively to environmentally friendly investments, including energy-neutral buildings and renewable energy sources, such as solar and wind farms implemented for these projects,
• the issue of short-term securities of a multilateral financial institution for the amount of PLN 500 million in which the Bank acted as the dealer,
• the issue of three series (3-year and two series of short-term) bonds of a leasing company belonging to an international financial group for the total amount of PLN 500 million. The Bank was the sole arranger and dealer,
• the issue of 3-year bonds for a company from the developer industry for the amount of PLN 220 million, in which the Bank was the co-arranger and dealer,
• the issue of 3,5-year bonds of a company being the largest IT distributor in Poland for the amount of PLN 80 million for which the Bank acted as the sole arranger and dealer,
• the issue of 3-year bonds for the top company from the Polish asset recovery sector for the total amount of PLN 70 million in which the Bank was the dealer of the consortium,
• the issue of 3-year ESG KPI Linked bonds for the amount of PLN 65 million for a company operating in the fuel industry in which the Bank was the sole arranger and dealer,
• the issue of 23 series of bonds of a leasing company from the Bank Pekao Capital Group, in EUR and PLN, for the total amount of PLN 9.4 million and the issue of 51 series of bonds of a factoring company from the Bank’s Capital Group, for the total amount being the equivalent in PLN and EUR of about PLN 24.2 billion. The Bank performed the role of a sole arranger and dealer in those transactions,
• the issue of 3 series of short-term bonds of a mortgage bank from the Bank Pekao Capital Group for the total amount of PLN 600 million in which the Bank acted as the sole arranger and dealer,
• the issue of 15 series of bonds of an enterprise involved in management of municipal waste and raw materials for the total amount of more than PLN 772 million,
• the issue of 109 series of bonds of 24 municipal units for the total amount of nearly PLN 1.8 billion.

One of the elements of our strategy is to finance public sector and municipal projects. We render our services and we provide financing to self-government units, municipal companies, institutions of higher education as well as entities established as part of public-private partnership. We are actively involved in activities related to building and developing Polish infrastructure, including the support for sustainable development of the economy and environmental protection.

We cooperate with 11 out of 12 Polish metropolises (92% market share) and we provide ongoing budget support for five of them. We cooperate with every fourth municipality in Poland (25% market share). We maintain business relationships with 92% of towns with county rights and we provide ongoing services to every fifth of them (21%). We also cooperate with every third county (37%) and with almost all provinces (94%). We are a major bank for state universities – 60 of them use our services.

In 2023, we joined an international consortium that will finance the construction of a tram line in Cracow in the public-private partnership formula. The European Investment Bank, the European Bank for Reconstruction and Development and the Polish Development Fund also participate in this financing. Our participation in financing exceeds PLN 0,5 billion and it is the largest project implemented in this formula in the area of public urban transport. The project is of strategic importance to the city of Cracow in terms of development of the fast and low-emission urban transport.

We provided ESG funding to support the development of local government units, e.g. for: the city of Łódź in the amount of PLN 499,6 million, Lublin in the amount of PLN 250 million, Toruń in the amount of PLN 140 million, Zabrze in the amount of PLN 50 million, Siemianowice Śląskie in the amount of PLN 28 million and Sanok in the amount of PLN 20 million.

As part of the public sector, we provided financing for municipal companies, including: for MPO Kraków (PLN 60 million) – working capital financing or Gdańskie Autobusy i Tramwaje (PLN 50 million).

We also provided financing to the Regional Hospital in Skierniewice in the amount of PLN 30 million, and as part of the consortium with BGK (Bank Pekao’s participation – PLN 115 million) for the Lower Silesian Center for Rehabilitation, Recreation and Sports and Wellness for Seniors and Disabled and Physically Active People Residents of the Copper Basin – a project with a total value of PLN 230 million.

In 2023, we won a competition for offers to service the Łódź Province and the Górnośląskie Przedsiębiorstwo Wodociągów SA.

Since 2023, we have the so-called a single European passport that allows you to provide cross-border banking services within the European Economic Area (EEA), without opening a branch. As a result, we will more actively support corporate clients operating outside Poland and acquire new clients in Europe.

The amount of newly granted guarantees and sureties rose by nearly 47% in 2023, whereas the exposure resulting from active transactions at the year-end was higher by 22% in comparison with 2022. The Bank financed invoices under the Open Financing Platform (OFP) in the total amount of nearly PLN 2.3 billion higher than in 2022.