Thanks to implementing the new management standards in the corporate sales network, the PKO Bank Polski SA Group has been constantly developing its cooperation with customers, extending its scope based on the wide range of products offered. Thanks to launching a modernized iPKO Biznes platform and implementing mobile solutions for business customers, the Bank’s Group considerably improved the attractiveness of the transactional offer, which translated into a considerable increase in the transaction volume and related balance sheet and income statement categories.
The Bank’s Group also developed its presence abroad and during the first half of 2017 opened a branch of the Bank in the Czech Republic. The presence abroad of the Bank’s Group enabled establishing and considerably enhancing relationships with customers who had voiced such expectations. This included leaders in the Polish petrochemical and gas industry.
As part of supporting the Polish export policy, the PKO Bank Polski SA Group successfully offered its customers the Export Support Platform which helps entrepreneurs establish commercial relationships on foreign markets. At the same time, it educates and supports them in the appropriate selection of financial instruments useful in international trade, which are to be found in the product offer of the Bank’s Group.
Customers of the segment
The Corporate and Investment Segment as at the end of December 2017 served nearly 15 thousand customers, including:
- 8.4 thousand corporate customers;
- 1.1 thousand strategic customers;
- more than 0.6 thousand foreign customers.
- more than 4.3 thousand local government units and central level government institutions, including budget-dependent entities and other related entities;
In 2017, the number of customers served in the segment increased by 0.3 thousand.
Structure of corporate and investment segment outcomes
In 2017, the Bank confirmed its position as an unquestioned leader in services to local government units, participating in local governments’ projects of a non-standard nature and winning tenders for the provision of services to the Pomorskie Voivodeship and the Górnośląsko-Zagłębiowska Metropolis.
Lending activity and structured financing
As at 31 December 2017, gross corporate loans amounted to PLN 44.6 billion and the balance increased by PLN 3.0 billion since the start of the year, and the total financing of corporate customers, including issued bonds and lease receivables, amounted to PLN 64.0 billion, which represents an increase in annual terms of nearly PLN 2.5 billion (i.e. 4.0%).
The PKO Bank Polski SA Group supports its customers in carrying out strategic investment projects through advice both in selecting the forms of financing and the flexible terms of financing and repayment. The Group collaborates closely with local government units and finances investment projects serving the local community.
Financing of corporate customers (in PLN billion)
PKO Bank Polski SA offers wide access to funds to its customers for financing complex investment projects, and the services of advisors focused on selecting the optimum financing and repayment terms.
As part of the product offer of the Bank’s Group, corporate customers may avail themselves of lease and factoring products and services. Practically all fixed assets are financed through leases, depending on customer needs. Apart from standard products, the offer comprises fleet leasing services and cooperation with suppliers.
Deposit activity and transaction banking
The level of corporate deposits as at the end of 2017 exceeded PLN 48.6 billion and increased by PLN 10.9 billion during the year, mainly due to an increase in the cash maintained on current accounts by customers.
The Bank extends its offer for corporate customers with complex organizational structures and offers them the use of various types of products and services facilitating settlements with Polish and foreign business partners, and develops dedicated products based on cash pooling solutions. Thanks to its presence in Germany and the Czech Republic the tool can be used to manage financial resources in cross-border transactions.
Corporate deposits (in PLN billion)
PKO Bank Polski SA continues to increase the quality of the services provided within the scope of transaction banking, which is visible, among other things, in the increased number of customers using iPKO biznes. As at the end of 2017, 11.4 thousand customers of the segment used electronic banking. As part of extending the offer concerning the electronic channels for corporate customers, in 2017, the Bank introduced a new version of the iPKO biznes electronic banking system.
New iPKO biznes is:
- a new homepage, the so-called “Kokpit” which provides users with fast and aggregated access to basic information on their accounts and services.
- personalization of the information displayed, summaries, listings, sorting, filters, import and export of data;
- intuitive navigation;
- advanced search engines with developed search criteria, presenting data in synthetic or analytical format;
- a system adapted to the needs of capital groups with a complex structure, including those having group entities in different countries;
- two language versions – Polish and English.
Number of customers with access to iPKO business (in thousands)
New iPKO biznes services:
- tax-related standing orders;
- standing orders executed through SORBNET;
- foreign transfers: SEPA;
- configuration of trusted counterparties in the system.
After transferring to the new version of iPKO biznes, users can install the mobile application iPKO biznes, which provides online access to the firm’s financial information, including:
- a view of the list of accounts, available balance and accounting balance;
- transactions to be signed and sent;
- transactions awaiting realization and rejected transactions;
- account history.
At present, the iPKO biznes application enables customers to monitor and manage their accounts, payment cards and loans and to place orders for all types of transfers.
Financial Institutions
PKO Bank Polski SA has a wide and efficient network of nostro accounts, more than 1400 established SWIFT relations with banks in various countries and markets. At the same time, the Bank maintains about 200 loro accounts for foreign banks, which are used for settling the transactions concluded by these banks both in Poland and in other countries.
The Bank actively cooperates with the market participants, supporting the activities of its customers on foreign markets and extends the range of currencies available to the Bank’s customers, for example, the New Zealand dollar (NZD) was introduced to the Bank’s offer.
The actions are focused on introducing optimal methods of performing international settlements, implementing new solutions in foreign banking and seeking out new attractive markets (for example, the Persian Gulf, South-Eastern Asia, South Africa).
International banking
The Bank’s Group actively participates in the development of the international expansion of its customers, offering them support on foreign markets. Initiatives are undertaken to facilitate financial services for Polish firms operating on international markets. One of these was opening corporate branches in the Federal Republic of Germany and in the Czech Republic. The branches’ offer includes a full range of services and products for corporate customers, comprising among other things:
- transaction banking (including the international cash pooling);
- electronic banking;
- treasury products;
- trade finance;
- corporate loans.
Launching the Bank’s foreign branches is an element of the Bank’s Group strategy for international expansion, which is based on following the customers and their needs. Based on strong relationships with the majority of the leading Polish capital groups, the Bank provides support for their activities and investments abroad, and effectively participates in the development of the international expansion of its customers.
In the case of enterprises conducting business activities in Ukraine, the banking services are offered through KREDOBANK SA which belongs to the PKO Bank Polski SA Group.
Moreover, the Bank ensures specialist support to foreign firms operating in Poland, among others, those from Scandinavian countries, South Korea and Ukraine. To serve this end, teams of experts have been appointed which are dedicated to serving firms from these countries, which helps build business relations. The broad range of products offered and the high class team of advisors make PKO Bank Polski SA increasingly appreciated by foreign customers.
Brokerage activities
Thanks to its activities on the WSE, Dom Maklerski PKO Banku Polskiego SA (the Brokerage House) is the unquestioned leader on the capital market in Poland. The high share in the transaction volume on the secondary market of shares and bonds is particularly worth emphasizing. In 2017, in the case of the share market it was 15% and in the case of the bond market it was 45%. In both these areas, the Brokerage House was ranked first in the ranking of brokerage houses as at the end of 2017.
As at the end of 2017, the Brokerage House maintained 139 thousand securities accounts and cash accounts and 188 thousand registration accounts. The Brokerage House comes fourth on the market out of 39 participants in terms of the number of securities accounts (according to data published by KDPW).
In 2017, the value of transactions executed on the primary market in which the Brokerage House participated was PLN 7.3 billion. In particular, it is worth noting that BH participated in the issues of the following companies: PLAY Communications SA, DINO POLSKA SA, Rafako SA, CCC SA, Famur SA, Elemental Holding SA. Moreover, the Brokerage House mediated in introducing the shares of Polimex Mostostal SA to public trading. The shares were issued as part of a non-public offering with a value of PLN 0.3 billion.
Share of DM PKO Bank Polski SA in trading on the secondary stock market
In the area of mergers and acquisitions, the Brokerage House finalized the purchase of Polish heating assets and the Rybnik power plant from the EDF concern by PGE S.A. The value of the transaction was PLN 4.3 billion.
In 2017, Dom Maklerski PKO Banku Polskiego SA was active on the bonds market. The value of all debt securities sold, in transactions in which BH participated was nearly PLN 1.0 billion. The transactions were related to debt securities of the following companies:
- Polski Koncern Naftowy ORLEN SA – bond issues with a total value of PLN 400 million in which the Brokerage House acted as the Lead Manager;
- Echo Investment SA – bond issues with a total value of PLN 300 million in which the Brokerage House acted as the Lead Manager;
- BEST SA – bond issues with a total value of PLN 205.8 million in which the Brokerage House acted as the Lead Manager;
- Giełda Papierów Wartościowych w Warszawie SA – bond issue with a total value of PLN 60 million in which the Brokerage House acted as member of the distribution consortium.
The Brokerage House also executed calls related to the sale of shares, purchase and redemption totalling PLN 2.3 billion – the largest transactions related to Synthos SA, Macrologic SA, VANTAGE DEVELOPMENT SA, BENEFIT SYSTEMS SA, MCI Capital SA.
Treasury products
PKO Bank Polski SA has a wide range of treasury products dedicated to individuals and institutional customers, such as negotiated deposits and spot and forward currency exchange products, foreign exchange, interest rate and product price hedges. The Bank may adapt the products offered to the individual needs of its customers and deliver them through any convenient distribution channel.
In 2017, as part of its customer-focused activity, the Bank conducted intensive works related to implementing the MIFID II Directive and finalized the project of online currency exchange eKANTOR.
Interbank market
The Bank is the Treasury Securities Dealer and Money Market Dealer. It also acts as the market maker on the domestic interest rate and foreign exchange market. The Bank was ranked fourth in the competition for the selection of Treasury Securities Dealer 2018.
The Bank has a significant portfolio of securities, which represents about 18% of its total assets. The portfolio is financed with funds not allocated in the lending activity and comprises mainly Treasury securities and NBP securities denominated in PLN. The functions of the securities portfolio are related to current liquidity management and the function of the investment portfolio.
Fiduciary services
The Bank maintains security accounts for customers and facilitates domestic and foreign market transactions, and acts as a depositee for pension and investment funds. As at the end of 2017, the value of the customers’ assets held on fiduciary accounts was more than PLN 111 billion and it was about 60% higher than the value achieved in the corresponding period of the prior year.
Export Support Platform
The Export Support Platform (available under www.wspieramyeksport.pl) is a comprehensive analytical tool implemented in 2017 for firms which plan foreign expansion containing up to date business data and analyses and a knowledge abstract on markets and industries. The Exporter’s Guide contains information on how to develop a firm’s strategy or properly utilize marketing for the firm’s promotion abroad. Entrepreneurs who are looking for detailed business information about new potential sales markets will find them in the section “Znajdź rynki” (“Find markets”). On filling in a short questionnaire, they will be able to find financial products offered by PKO Bank Polski SA that are best suited to the current needs of their firm.