Summary of Performance

The ROE ratio was at the level of 24.7%.

• The Group’s operating income in the 2023 amounted to PLN 14,733 million and was 38.2% higher than the income generated in the 2022, mainly due to interest income and trading result.
• The net interest income achieved in the 2023 amounted to PLN 11,923 million and was higher by PLN 3,680 million, i.e. 44.6% compared to the result achieved in the 2022. Net interest income in the 2022 included costs related to the modification of PLN mortgage loan agreements granted to consumers due to the suspension of their loan repayments in the amount of PLN 1,958 million.
• The Group’s net fee and commission income achieved in the 2023 amounted to PLN 2,786 million and was higher by PLN 76 million, i.e. 2.8% compared to the result achieved in the 2022, thanks to higher commissions from investment funds and brokerage activities, as a result of improved sentiment on capital markets and higher customer activity in the area of loans and card payments.
• The trading result achieved in 2023 amounted to PLN 507 million and was higher by PLN 320 million compared to the result achieved in 2022, due to a higher result on foreign exchange and a higher valuation of derivative instruments.
• Other net operating revenues and costs achieved in 2023 amounted to (minus) PLN 513 million and were higher by PLN 9 million compared to 2022.

Operating costs in the 2023 amounted to PLN 4,631 million and were higher by PLN 644 million, i.e. 16.2% compared to the 2022, mainly due to the inflation indexation of salaries and higher property maintenance costs, due to increases in energy prices and the minimum wage.

The result on allowances for expected credit losses in the 2023 amounted to PLN 559 million and was lower by PLN 1,457 million, i.e. 72.3% than in the 2022, mainly due to lower risk provisions regarding foreign currency mortgage loans in CHF and lower costs of risk.

Contributions to the Bank Guarantee Fund in 2023 amounted to PLN 190 million and were lower by PLN 77 million i.e. 28.8% than in the 2022.

The tax on certain financial institutions in the 2023 amounted to PLN 879 million and was higher by PLN 13 million, i.e. 1.5% than in the 2022 due to the increase in the Bank’s assets.

As at the end of December 2023, loans and advances at nominal value amounted to PLN 178,815 million and were higher by PLN 2,968 million, i.e. 1.7% than at the end of December 2022.

As at the end of December 2023 the volume of retail loans amounted to PLN 80,034 million and were higher by PLN 3,190 million, i.e. 4.2% than at the end of December 2022. Corporate loans including non-treasury debt securities at the end of December 2023 amounted to PLN 98,780 million and were lower by PLN 222 million, i.e. 0,2% compared to the end of December 2022.

As at the end of December 2023 amounts due to the Group’s customers and debt securities issued amounted to PLN 244,817 million and were higher by PLN 22,095 million, i.e. 9.9% than at the end of December 2022.

The value of net assets of investment funds managed by Pekao TFI S.A. amounted to PLN 24,228 million and was higher by PLN 5,056 million, i.e. 26.4% compared to the end of December 2022.

In 2023, the Bank’s Headquarters was moved to the Pekao Tower skyscraper in the Forest complex at 1 Żubra Street in Warsaw. In the new headquarters, we ensured a high standard of work, modern office and ICT solutions that were adapted to the hybrid work model and consistent with the latest trends supporting cooperation, communication and the implementation of projects using the Agile methodology.

Forest is a modern building that provides very good access to natural light, thanks to the use of an innovative, energy-saving façade, it helps reduce the carbon footprint and consumption of raw materials, including: enables reuse of rainwater. 200 trees and the same number of shrubs were planted in the open courtyard, recreational terraces and the roof of the building. I

In 2023, we started the Multi-BranchPolska project, the aim of which is to consolidate business and retail customer service units and support teams in one office space. We have launched 5 MultiBranch branches: in Gdańsk, Katowice, Kraków, Lublin and Łódź. The new head office in Pekao Tower was a model for the Multi-Branch-Polska project. MultiBranch units enable employees to use a modern and functional space that takes into account the highest standards of space arrangement, equipment, as well as solutions for hybrid work.