Press release


Bank Pekao with record-breaking quarterly result after ownership change

Bank Pekao SA posted a record result for the fourth quarter 2017. This historic success in just a few months was possible thanks to the dynamic work of the new management board and focus on execution of the new  strategy. 2017 brought an improvement in all key financial indicators.

Consolidated net profit for 2017 amounted to PLN 2,475 million, which means an increase by +8.6% y/y with a record high net profit of PLN 1,054m in Q4. In 2017, the Bank improved its return on ROE to 11.0%, while maintaining a very high Tier 1 capital adequacy ratio of 16.1%. With a high level of the total capital adequacy ratio at the level of 17.1%, the Bank meets the dividend payment criteria at the level of 100% of the 2017 profit. In the retail segment, Bank Pekao recorded record sales of key retail loans at the level of PLN 18 billion, while at the same time recording stable growth in the corporate segment (+7.1%) based on an increase in investment activity in the economy.

Thanks to the new strategy, Bank Pekao SA entered a period of dynamic growth, which can be seen from the results achieved and especially from the high dynamics of the last quarter. Net profit for the fourth quarter of 2017 was the highest in the history of Pekao. All of the Bank's key business lines outperformed last year's results. We pursue dynamic growth and strengthen our market position in key retail banking segments, we are the leader of corporate and investment banking, our SME segment is also dynamically developing. We consistently implement our strategy by introducing a new product offer improving the quality of services and business efficiency. In 2018 we are preparing a number of business initiatives which, combined with consistent implementation of the strategy, will enable us to achieve double-digit profit dynamics in 2018.” - Michał Krupiński, CEO of Bank Pekao S.A said.

”In 2017, we showed an improvement in all key financial ratios. With a record net profit in the fourth quarter, we improved our annual earnings by almost 9% y/y. It is particularly important to accelerate the growth of basic income resulting from the positive dynamics of interest income and interest margin as well as the rebuilding of the fees and commissions income in the fourth quarter of the year. Improvement of profitability was achieved with conservative risk and cost management. We want to continue high dynamics of the fourth quarter in subsequent months, maintaining a strong capital position and high quality of assets.”Tomasz Kubiak, CFO of Bank Pekao SA said.

In 2017, Bank Pekao SA net profit was higher by +8.6% y/y at PLN 2,475 million. Net profit for the fourth quarter increased to PLN 1,054 million, which is the best result in Pekao history. Net profit in the fourth quarter of the year, purified from the revaluation effect of previously held shares in PPiM and Xelion amounted to PLN 640 million, showing a high growth rate of +29.4% y/y and +19.4% q/q.

After four quarters, the gross operating profit increased by +5.7% to PLN 4,087 million in comparable conditions, thanks to an increase in revenue by +3.9% y/y (showing a systematic improvement in revenue in quarterly terms). Operating income in 2017 amounted to PLN 7,350 million, growing by +3.9% y/y in comparable conditions. In quarter-over-quarter terms, basic income in the fourth quarter grew by +4.3%, which determined the annual operating income growth rate. This result is due to a strong and permanent improvement in interest income, which has reached the highest level in 4 years, and a significant reflection of the commission income.

Net interest income after 12 months increased by +4.8% y/y to PLN 4,593 million, thanks to a steady growth of volumes in key segments. Net interest margin in the fourth quarter was 2.80%, gradually increasing due to further rotation of the asset structure into products with higher profitability at stable cost of deposit base.

In 2017, fees and commissions income amounted to PLN 2,353 million. The fourth quarter showed a significant reversal of the downward trend thanks to +6.4% q/q increase. The Bank significantly improved its fees and commissions income from lending activity supported by commissions from investment activities, removing the pressure on other commissions related to migration of customers to mobile channels.

Key retail loans increased by +14.4% y/y to PLN 57,408 million with record sales. The Bank maintained a solid quarterly volume growth rate of approximately +3.3% q/q. Loans to enterprises increased by +7.1% y/y to PLN 59,315 million, with a noticeable acceleration by +2.2% q/q, reflecting an improvement in investment conditions in the economy.

In 2017, Pekao implemented a number of activities aimed at the sustainable improvement of its business performance, such as development of the product offer and marketing campaigns. Thanks to this, the sale of mortgage loans increased in annual terms by +33% and reached a record-breaking PLN 9,144 million, which translated into an increase in the market share of new sales by 3.4 pp to 21%. The Bank also recorded a dynamic increase in cash loans sales by +14% y/y to a record level of PLN 8,782 million.

The results of corporate banking and the SME segment showed very good volume dynamics. The volume of investment loans grew by 15.6% to PLN 15 818 million, demonstrating a significant acceleration in the second half of the year. The Bank also dynamically increased its sales of leasing and factoring products by +19.1% y/y, with a record-breaking growth rate +14.8% in Q4. The Bank maintained its leading position on the corporate and investment banking market by participating again in key transactions on the capital market in Poland, supported by numerous awards, among others with the title of “The Best Investment Bank in Poland 2018”.  

In 2017, the Bank maintained an increase in retail deposits by +7.6% y/y to PLN 76,107 million, while customers migrated from term deposits to current accounts. At the same time, there was a dynamic increase in investment fund assets by + 9.6% y / y supported by a significant acceleration of net sales of investment funds (especially in the fourth quarter). Corporate deposits grew by +9.1% y/y to PLN 73,319 million at the end of the year, with seasonal growth in Q4 at +15.8%.

In 2017, the operating expenses grew by +1.6% y/y, below the inflation level and amounted to PLN 3,263 million. The cost/income ratio was 44.4%, which means a further improvement in comparable conditions by -0.9 pp y/y.

Bank Pekao SA maintains the quality of its credit portfolio at a very high level. The ratio of non-performing loans decreased to 5.4%. Risk costs in 2017 fell by 1 bp to 44 bps, while the provisioning ratio reached 74.4%. The active risk management policy was supported by a transaction of sale of the NPL portfolio in Q4 2017.

The Bank meets all capital requirements. The Pekao Group's Tier 1 ratio of 16.1% is 1.3 pp above the level required to pay 100% of the dividend.

  • (1) RoE at the level of 9.2% excluding PLN 414 million profit on revaluation of previously owned shares of Pioneer and Xelion.



Bank Pekao S.A. was founded on March 17th, 1929 and nowadays is one of the largest financial institutions in Central and Eastern Europe. It is a Polish, international universal bank, the largest corporate bank, and the leader of the private banking market  in Poland. Pekao S.A. serves over 5 million customers, every second Polish company becomes  the bank’s client. Bank Pekao S.A. is one of the of the safest banks at the Pan-European level. Within the Pekao’s capital group there are several  companies which are national leaders in the area of brokerage, leasing, factoring and financial investments. With over 15 000 employees Pekao is one of the largest employers in Poland.

The history of Bank Pekao S.A. is the history of Polish banking system: it was the first bank in Poland that launched an ATM, issued the first credit card, opened a brokerage house, applied in practice biometrics in banking industry.

Since 1998 Pekao has been listed on Warsaw Stock Exchange in WIG20 index. It is one of the five largest companies on the Polish stock exchange.

Bank Pekao S.A. is a part of the PZU Group - the largest financial group in Central and Eastern Europe.

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