Strategy execution in 2024

new functionalities of PeoPay and P24 applications:

• Skarbonka account, which supports saving for a selected purpose,
• presentation of customer insurance: PZU travel insurance, property insurance for Mortgage Loan (PZU), life insurance for Mortgage Loan (PZU), Credit Card with Żubr,
• new discount programme “Okazje z Żubrem” with attractive promotions and discounts,
• Miles & More programme

PeoPay and P24 process improvements:

• addition of geolocation in the parking payment service,
• public transport tickets available before logging in,
• improvements in payments and transfers: BLIK transfer request in PeoPay, possibility to send transfer confirmation directly to the e-mail indicated by the customer, “Make another transfer” function, display of transfer cost information,
• new and more functional chat and the presentation of customer advisor data.

development of functionalities for companies in PeoPay and P24:

• making credit products available to the business customer,
• making it easier to open a business with an account from within PeoPay,
• bank statements in JPK format, for business customers.

options to increase security:

• PeoPay activation security – additional threat information content,
• two-factor logging into the Pekao24 service using the PeoPay app,
• the ability for clients to block the conclusion of credit agreements on the Pekao24 service and the PeoPay app and when entering into a relationship with the bank when opening an account,
• ‘Panic Button’ – one place to block channels and cards in a stressful situation,
• handling of PESEL number disclaimers in processes.

PeoPay Kids application development and Parent Panel:

• new seasons of educational games in the PeoPay KIDS app,
• expansion of the MC Debit FX card images available for teens 13+ to include the passion categories sports and music,
• expansion of the Parent Panel functions in terms of consents and declarations, changes to transaction limits, blocking access channels, changing card limits and managing access to teenager 13+ accounts.

Personalisation and ergonomics of PeoPay and Pekao24:

• Background personalisation options in PeoPay for sports-related passions and music personalisation and for private banking customers.

At the end of 2024, we achieved the aspiration assumed in the strategy regarding the number of active mobile customers in relation to the number of current accounts.

We increased sales of cash loans in remote channels by +27% y/y and the share of loans sold in electronic channels in 2024 was 85% compared to 83% in the previous year. The increase in customer activity in digital channels was also reflected in the results of the satisfaction measurement. PeoPay is one of the best-rated financial applications available in Google Play and AppStore. Bank Pekao is constantly developing a CRM system that, supported by a real-time data processing platform, advanced analytics and cloud solutions, provides customers with the most relevant offers and messages.

In 2024, we improved PekaoBiznes24. We provided clients with automatic downloads of JPKWB files, the ability to download electronic confirmations of balances at the end of the year, implemented information on a block due to the seizure of an account at the request of an enforcement body, presentation of the status of a foreign transfer in the SWIFT GPI format and expanded the functionality of currency transfers with online booking on weekends. We carried out a technological modernization of the system and implemented new security functionalities. In the second half of the year, we initiated the series of training courses in the form of webinars for our corporate clients on the security of navigating the network, which was very positively received by the participants. The number of corporate clients using direct integration of their F-K systems with the bank via the PekaoConnect service increased significantly.

The Bank continued the development of its offer and support for corporate clients by developing advanced digital tools. We are developing a modern currency exchange platform in Pekao24, PeoPay, PekaoBiznes24 and PeoBIZ, which provides customers with convenience and speed in making currency exchange transactions. The platform is intuitive and easy to use with a modern interface, design and customization capabilities.

In 2024, we simplified and shortened the transactional banking product documentation for corporate and enterprise customers and ensured a consistent and readable documentation layout, which translates into increased customer satisfaction and a shorter customer service process.

In response to the expectations of our customers, we have introduced cashless settlements in the following currencies: Mexican Peso (MXN) and Israeli New Shekel (ILS). The service is a full settlement service in the ILS and MXN currencies, which means the possibility of opening accounts in these currencies, ordering foreign transfers, intra-bank currency transfers and currency conversions from the PekaoBiznes24 system and other electronic banking systems. As one of the few banks in Poland, we also accept payments in both currencies in express mode. We therefore offer businesses the widest range of supported currencies and the best cut-off times on the market.

Moreover, we have expanded our presence in the local market. We have provided companies with new operational tools, e.g. the ability for companies and corporate clients to make cash deposits at post offices.

In 2024, we opened 572 thousand accounts for individual customers maintaining high acquisition results and consolidating the lead in net account growth in Poland with +338 thousand – this is an increase of 6% y/y compared to the record year of 2023. In 2024, the value of cash loans granted measured by net volume increased to PLN 6,3 billion, up to +22% compared to 2023.

In 2024, in the area of bancassurance, we intensified marketing and promotional activities aimed, among other things, at raising customer awareness of the insurance products available in the Bank’s offering and supporting sales of these products. We have achieved our strategic aspiration to double our gross written premium in 2024.

A significant impact on maintaining high sales of accounts in 2024 is the result of a very good offer of Konto Przekorzystne with gold card, high interest rate on Konto Oszczędnościowe and the promotion among parents of the establishment of the first account for a child as part of the campaigns such as the 800+ applications, Children’s Day, Back to School or the Christmas offer. The bank also conducted intensive online marketing activities to support acquisition and building the image of the bank for the young customers.

In 2024, we conducted two large marketing campaigns supporting the sale of the Konto Przekorzystne with a Konto Oszczędnościowe and the “Otwórz się na PeoPay” mobile application. Thanks to the conducted marketing activities, almost every third new account was set up in the online process (using the selfie verification method and AIS – identity verification by logging in to another bank). We also achieved very good acquisition results among young customers up to 26 years of age, effectively rejuvenating Pekao’s customer base. Our target was to acquire a total of over 600 thousand customers under 26 years of age in 2021-2024 – this goal was exceeded, as we acquired almost 650 thousand up to 26 years of age. In 2021-2024, we opened 736 thousand accounts for the Young, including 190 thousand accounts in 2024.

2024 is also the year of new services and products. At the beginning of the year, we introduced and communicated to our customers, #Zrzutki, that is, a request for a BLIK transfer.

In the first quarter of 2024, adult Pekao customers received a new product to help them save regularly for their chosen goals in the form of #Skarbonka available in the PeoPay app and on the Pekao24 website. In the third quarter, the “Skarbonka” for teenagers (13-17 years) was also implemented.

The Bank actively supports the passions of its customers – sport, music, gaming. In June, ahead of the heightened sports and festival excitement, we implemented 20 new card images and backgrounds to its offer in the PeoPay application.

In 2024, new sales of financing for business customers in total (loans, leasing and factoring) amounted to PLN 2.9 million and were higher by +24% y/y. The increase in new sales of bank loans in the business segment in the reporting period by +14% y/y to PLN 1,3 billion was supported by attractive terms of the new offer related to the possibility of repaying liabilities from another bank and the development of the offer of loans with pre-examined creditworthiness for customers who can easily and quickly use overdraft limits, loans or credit cards.

In 2024, the Bank achieved very good sales results of mortgage loans meeting its targets and achieving a record result in mortgage sales, higher than the previous record of 2023, despite the end of the acceptance of applications for “Bezpieczny Kredyt 2%” under the government program „Pierwsze Mieszkanie”, which were the driving force of sales in the second half of 2023.

Mortgage loan sales amounted to PLN 11.3 billion, increasing by 9% compared to 2023. The results achieved allowed the Bank to strengthen its market position and in 2024 the Bank took 3rd place in terms of sales of mortgage loans in the banking sector and, in accordance with the assumed goal in the Strategy 2021-2024, is in the TOP3 in the mortgage segment.

In 2024, net sales of investment products exceeded the level of +17 billion PLN with a dynamics of +52% y/y. A significant increase was also recorded in the sales of Private Banking accounts to the level of over 1.2 thousand, i.e. +55% more than in the previous year. Assets covered by the investment advisory service in the Bank reached the level of PLN 3.7 billion.

Thanks to effective business activities aimed at strengthening existing competitive advantages and creating new ones in the SME and MID segments, we have consistently strengthened the Bank’s position in this market. We offer our clients a wide, comprehensive range of products and services. such as bank loans, leasing, factoring, arranging issues of debt securities and other specialized forms of financing. We expand our offer with new product and functional solutions. In 2024, among others:

• new guarantee lines in cooperation with Bank Gospodarstwa Krajowego and European Investment Fund (Biznesmax Plus, Ekomax, Investmax) and tools supporting the acquisition of EU subsidies (EU subsidy search engine, compendium of knowledge about European funds, “Fundusze Europejskie z Żubrem” portal, the European Funds Forum),
• expansion of the credit offer available on the Bank’s website and online banking system PekaoBiznes24,

• introduction of the Union loan, ecological loan and loan for financing biogas plants.

We have maintained a high level of new customer acquisition, in the SME segment we acquired over 3 thousand customers and around 900 new customers in the MID segment.

In 2024, the value of new loans sold (excluding renewals) in the SME segment reached PLN 6.5 billion, maintaining the high level from the previous quarters and 2023. In the MID segment, the value of new loans sold amounted to PLN 13.6 billion.

In the corporate banking segment, we focus on growing individual business areas using modern tools that support the activities of advisors, product specialists and analysts. We have implemented and developed a modern and comprehensive system solution in the area of financial markets, supporting the front office, operations, risk, accounting and reporting areas – Murex system. It provides the ability to build automated and ergonomic business processes as well as operational and management processes and modern methods for measuring financial and counterparty risk, strengthening our position as an expert in Markets, Treasury and integrated risk management.

We have implemented a modern CRM One system, based on a public cloud computing model, providing support for advisors, product specialists and analysts in current sales and after-sales work. The system, in addition to direct sales and after-sales support, provides functionalities supporting process simplification, digitalization and process automation. CRM One presents information related to actions taken by business users, and also aggregates information from other systems, providing, among others, information on products used by the client, internal rating, information on financial data and transactionality. The new CRM One system is a strong support for the client centricity approach, including further improvement of customer service quality, building and strengthening long-term business relationships, which translates into both acquisition and x-sell.

By developing our long-term business relationships and building new ones, we engage in projects for corporate clients, the public sector, the commercial real estate sector and financial institutions, we develop transactional banking, treasury, investment banking, specialized financing and international banking, supporting our clients in their foreign expansion.

In 2024, we consistently strengthened our leading market position, as reflected in stable earnings results, market shares, unique product competencies and a number of industry awards.

The Bank continued strategy of robotization and automation of operational processes and also increased the efficiency of credit processes. In the fourth quarter of 2024, we made it possible for our customers to apply for a mortgage loan electronically, without having to come to a bank branch. A mortgage loan application at Bank Pekao can be submitted online via Pekao24 online banking and the PeoPay mobile application. Customers can conveniently apply for a loan from anywhere in the world, 24/7, with the assistance of a specialised helpline employee if necessary.

The development of remote distribution channels was accompanied by improvement in the effectiveness of the Bank’s branch network. In 2024, the Bank reduced its branch network by 17 units. At the end of the year, the branch network consisted of 478 own branches and 95 partner branches.

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 continued to develop

the self-service zone for corporate clients in the PekaoBiznes24 electronic banking, providing the ability to remotely establish relationships and service. We have developed the general availability functionality to offer customers the widest range of self-service and increase the quality of the banking services offered. In addition, as part of the development of the self-service zone in PekaoBiznes24, we have provided customers with a new process for applying for and purchasing closed cash services, and introduced improvements to the corporate card management process (e.g.: online presentation of card statuses, online management of card limits, automation of the card blocking process). We have made more improvements available in the general disposition, the opening of sub-accounts and in the “statement of company” application. We have enabled the most active clients to use the collective sending, cancelling and signing of multiple applications at the same time. We introduced a new version of the treasury product applications and also made a number of changes to the self-service area, enabling customers to reach the various self-service functionalities more quickly. We have also introduced a new certificate of account.

In 2024, we completed the migration of our corporate customers to a new mobile application called PeoBiz. Currently, the PeoBiz app is used by just under 20 thousand corporate customers. We’ve updated our mobile app several times this year to make it more attractive and easier for our customers to use. A simplified desktop, a new balance presentation, intuitive app navigation, new shortcuts, customer feedback and new functionality are just some of the improvements implemented for enterprise customers in 2024.

In the ESG Strategy for 2021-2024, we have defined our goals regarding caring for the natural environment and supporting sustainable socioeconomic development, among others, through active participation in the development of the domestic renewable energy sector and organizing the issuance of green bonds.

In November 2024, we published an externally certified environmental allocation and impact report, in which we described the investments for which we allocated funds raised from the issue of green bonds, along with their respective environmental indicators. We achieved full allocation of mobilized funds by financing projects in five categories: renewable energy and energy efficiency, sustainable construction, clean transport, pollution management and control. In addition, we are constantly expanding our offer for companies in the area of ​​​​supporting investments in green transformation – our proactive attitude was noticed and appreciated by the renowned Global Finance magazine: Bank Pekao S.A. was awarded the prestigious title „The Best Bank for Sustainable Finance in Central and Eastern Europe for 2024”.

In parallel to developing the ability to support our clients in meeting their financial needs related to the global transformation towards sustainable development, we constantly strive to maintain a safe risk profile and one of the lowest risk costs among the largest banks on the Polish market. For this purpose, we take actions to improve the infrastructure of risk models and the automation of credit assessment processes. As a result, in 2024, the Group’s risk costs amounted to 0.48%, while at the same time a high level of NPL coverage with write-offs. At the same time, we maintained a significant capital surplus above the regulatory minimum, which was reflected in the level of the Tier I ratio, which reached 16.1%.