Press release


Financial Results of Bank Pekao S.A. for the first half of 2018. Consistent execution of the strategy in all segments translates into better results and dynamic growth

  • Consolidated net income of Bank Pekao S.A. for the first half of 2018 amounted to PLN 932,1 m, increase of +7.3%[1] y/ y and translates into  increase in RoE by  24bps y/ y to 8.2%
  • Operating income from commercial bank[2] grew in 1H’18 by 9% y/ y
  • Increase in net interest income in 1H’18 to PLN 2,441m, +8.4% y/ y coupled with an expansion of net interest margin by + 5bps y/ y to 2.82%
  • Growth in volumes of key loan products in retail banking to PLN 61,297m, + 14.1% y/y
  • Consistent increase in number of active mobile banking users to 1 126k, + 44% y/y
  • market-leading capital position reflected in capital adequacy ratio 'Total Capital' at 17.4% and the Tier 1 ratio 16.3%
  • The bank maintains leadership in risk management with a cost of risk ratio of 35bps in 1H'18
  • Supported by implemented of the Digital Transformation of Retail Banking, Pekao is accelerating actions aimed at higher operational efficiency in key segments

In line with the objectives of "Strategy 2020", we continue a dynamic change of  Bank Pekao S.A. into a better and more effective organization, what has been reflected in 2Q’18 and 1H’18results. In each quarter we launch new product initiatives  and further simplify and improve process supporting servicing of our client base.  The growth in customer base [in all segments] in the first half of the year is the best reflection of  trust that customers place in us. After the success of the "Konto Przekorzystne" account, we introduced the "Pakiet Świat Premium" (Premium World Package) account for affluent clients. In the last week on June we also launched  the "Konto Przekorzystne Biznes" business account for micro companies. The new offer of accounts allowed us to to open 200k of new accounts and secure PLN 1 billion in deposit. Apart from the changes in the offer, the bank is going through the process of operational transformation, which will improve the effectiveness and efficiency of operations. A good example of such solutions is a simplified and automated process of loans renewals for the SMEs sector linked with the current account. Whereas, a new company from the SME segment is waiting for a loan decision a maximum of 5 days. These activities generated an increase in the loan volumes of the SME segment by +9% and thus a growth in market share. We will continue this process of change - said Michał Krupiński, President of the Management Board of Bank Pekao S.A.

Consistent improvement of net income despite the one-off costs

Bank Pekao S.A. in the first half of 2018 reported increase of the consolidated net income 2.9% y/ y to PLN 932.1 million (7.3% y/y excluding one-off costs3).  Consistent execution of the strategy enabled to improve the operating profit by +6.6%. The dynamic improvement of the operating profit reflects an increase of operating income by +5.8% y/y. The bank showed an improvement in key indicators, i.e. interest margin by 5bps. up to 2.82% in ROE to 8.2% by +24 bp y/ y and improvement of Cost to Income ratio by 42bps to 45.1%( excluding one-off costs)[3].

- Quarter on quarter the bank improves its financial results. What is essential, aside from the strong growth dynamics, structure of our results is improving. Pekao is characterised by strong growth dynamics of income from the commercial activities, all business lines showed an improvement of profits and operating income. The bank maintained high, over 8%, dynamics of interest income. Price discipline and good sales results of higher margin retail products helped further lifting interest margin. We are pleased that the  dynamics in sales and profitability are improving while we maintain capital strength and a leading position in a risk management - said Tomasz Kubiak, Vice President of the Management Board supervising the Financial Division

Another record-breaking half year of retail banking

The high sale of the key loans. In the first half of 2018, the bank once again achieved a double-digit volume growth in key retail loans, for which volume grew by +14.1% to PLN 61.3 y/y bn while we maintained price discipline.  The bank achieved another record in sales of mortgage loans, selling nearly PLN 5.3 bn,. Dynamics of new loans remained at a two-digit level +10.2% in annual terms, which translated into market shares in new sales at ofover 20% and Pekao maintains the strong position of the second mortgage lender in Poland. The bank increased the penetration of insurance products linked to credit products improving its position in the bancassurance.  In June over 40% of clients decided to buy bank’s CPI insurance for mortgage loans compared to 9% in the same period last year.

The new offer of accounts appreciated by customers. June was the record-breaking month in terms of sales the account "Konto Przekorzystne", of which the bank opened over 32k. In the first half of 2018 the bank opened 152k new ROR accounts, i.e. 32% more vs. first half of 2017.  In the second half of the year a further increase in sales is expected due to attractive offer of savings accounts, a competitive offer for young customers, an offer targeted to citizens of Ukraine and an offer for affluent clients with the new package "Świat Premium" (the premium world). The positive trends were also noted in the area of investment products, where the net sales for the first half of the year was 2.7 times higher than in the corresponding period previous year.

The leader of the mobile banking. The second quarter of 2018 was the time of major positive changes in the PeoPay mobile application. Pekao’s mobile application has been powered  Blik codes and option of adding a virtual card to Apple Pay. The last solution is unique in the Polish market. PeoPay functionality has been also enhanced by a virtual currency exchange and the application itself is also now available in Ukrainian. The bank continued to grow number of active mobile banking users in the rate of +44% y/y. At the end of June Pekao had 1 126k active mobile banking users. Pekao can boast of the highest number of customers paying with the smartphones by using the proximity option, this number increased by +38% y/y/ to 336k.  The bank consistently increases penetration of loan products in the mobile banking. In the first half of 2018 the bank granted +50% more loans through an online"click" process. In the comparison with the first half of 2017, nearly every third loan was granted in this process.

Digital Transformation of Retail Banking - Flagship strategic initiative. The programme of digital transformation of retail banking launched 70 technologically advanced initiatives aimed at sales development and the position of the leader of a quality in remote channels, thanks to the implementation of the modern digital services and payment methods.

Noteworthy is the implemented front-end omnichannel for various channels, thanks to which, New ROR set-up processes will shorten to 10 minutes with a wide range of products (savings account, multi-currency card, currency account, PeoPay mobile banking application) in a fully digital process.      

 An inteligent growth in corporate banking

Pekao consistently implements the strategy for the corporate banking. Revenues from the commercial activities grew by [8.6%] y/ y with the selective credit deployment ( 3.3% y/y increase) in promising MID segment (increase by 11.1% y/y). Corporate banking continues execution of cross-selling strategy by increasing the number of products sold to its corporate customers, thanks to the extensive offer and strong clients relationships.  This yields a  dynamic growth in leasing and factoring by ca.18% y/ y, and once again supports our leading role in the most important transactions on the capital market in Poland.

 Further development of SME banking

Creation of a dedicated SME’s division brings tangible impacts on business results.  Revenues of this customers' segment increased by +14.1% y/ y to PLN 231 million. Sales of credit products increased by 17.4% y/y of which thanks to better banking of customer, the value of sales of leasing products increased by 48.6%.

Private Banking

 In the first half of 2018, Private Banking continued activities aimed at acquiring new customers and optimization of management assets. As a result of these activities, nearly 170 of new clients were serviced as part of Private Banking and the value of purchasing investment products reached about/around PLN 700 million.

[1] Dynamics calculated on pro-forma income for 2017, excluding the one-off cost of the pension programme in the amount of PLN 50 million.

[2] Commercial Bank Segments: Retail and Micro, SME, Corporate and Private Banking

[3] PLN 49.8m gross cost in 1H'18 voluntary pension programme



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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