The Group has an integrated model of development in which the Bank’s subsidiaries constitute product centres, enabling the extension of the offering of financial services offered to customers. Such a model enables the Group to provide other than strictly banking and brokerage activities, such as: lease services and factoring, investment funds, pension and insurance funds, as well as transfer agent services, IT professional outsourcing and support in doing business. The Group also conducts property development activities and manages property and, through its subsidiaries, it conducts banking activities and provides financial and debt recovery services in Ukraine.
Entities included in the financial statements
As at 31 December 2017, the PKO Bank Polski SA Group was composed of the Bank as the parent company and 42 direct or indirect subsidiaries1. The consolidated financial statements include PKO Bank Polski SA as the parent company of the PKO Bank Polski SA Group and its subsidiaries as defined in IAS 27, Consolidated and Separate Financial Statements.
1 The number of subsidiaries includes only first tier indirect subsidiaries.
Direct subsidiaries
The PKO Bank Polski SA Group comprises the following direct subsidiaries:
PKO Bank Polski SA Group
Subsidiaries*PKO Towarzystwo
Funduszy
Inwestycyjnych SA
PKO Towarzystwo
Funduszy
Inwestycyjnych SA
Investment fund management
PKO BP BANKOWY PTE SA
PKO BP BANKOWY PTE SA
Management of pension funds
PKO Leasing SA
PKO Leasing SA
Leasing activities
PKO BP Finat Sp. z o.o.
PKO BP Finat Sp. z o.o.
Services, including transfer agent services amd outsourcing of IT specialist
PKO Życie Towarzystwo
Ubezpieczeń SA
PKO Życie Towarzystwo
Ubezpieczeń SA
Life insurance
PKO Towarzystwo
Ubezpieczeń SA
PKO Towarzystwo
Ubezpieczeń SA
Other non-life insurance operations
PKO Bank Hipoteczny SA
PKO Bank Hipoteczny SA
Banking activities
PKO Finance AB
PKO Finance AB
Financial services
KREDOBANK SA
KREDOBANK SA
Banking activities
Finansowa Kompania
“Prywatne Inwestycje’
Sp. z o.o.1
Finansowa Kompania
“Prywatne Inwestycje’
Sp. z o.o.1
Financial services
Qualia Development Sp. z o.o.
Qualia Development Sp. z o.o.
Property development
ZenCard Sp. z o.o.2
ZenCard Sp. z o.o.2
Technological company handling IT and business support products and services
Merkury - fiz an3
Merkury - fiz an3
Investment of accumulated funds from fund participants
NEPTUN - fizan3
NEPTUN - fizan3
Investment of accumulated funds from fund participants
* recognized in the consolidated financial statements of the PKO Bank Polski SA Group under the acquisition accounting method.
1) The second shareholder of the Company is “Inter-Risk Ukraina” Spółka z dodatkową odpowiedzialnością (a company with additional liability).
2) PKO Bank Polski SA holds the Fund’s investment certificates; the Fund’s investment certificates held are presented as the share in equity.
A full description of the Bank’s Group is included in the Financial statements of the PKO Bank Polski SA Group for the financial year ended 31 December 2017.
| Name of the subsidiary | Core business |
|---|---|
| PKO Towarzystwo Funduszy Inwestycyjnych S.A. | The core business of the company is the creation, representation towards third parties and the management of open and closed investment funds and management of the clients’ portfolio which include one or more financial instruments. The company also offers specialized investment programs and conducts employee pension programs (PPE). |
| PKO Leasing SA | The Company, together with its subsidiaries – PKO Leasing Sverige AB and PKO Leasing Nieruchomości Sp. z o.o. provides lease services. The companies offer finance and operating leases: cars, vans, trucks, machinery and equipment, technological lines, medical equipment, real estate, IT hardware and software, ships, aircraft and railway equipment. The offer includes a fleet management service. Moreover, a subsidiary – PKO Leasing Finanse Sp. z o.o. is involved in storing, preparing and selling post-debt-collection and post-contract items and PKO Agencja Ubezpieczeniowa Sp. z o.o. provides specialist services within the scope of creating insurance products and programmes for the clients of financial institutions. This Group also includes a special purpose vehicle with its registered office in Ireland, established for the securitization of lease receivables. The PKO Leasing SA Group also includes PKO Faktoring SA, which provides services of domestic and export factoring with assuming the risk and without assuming the risk, reverse factoring and service of factoring program for the suppliers. |
| PKO Bank Hipoteczny SA | The company specializes in granting mortgage housing loans to individual clients and it also purchases receivables relating to such loans from PKO Bank Polski SA. The core purpose of the company is to issue mortgage bonds on the domestic and foreign markets which constitute the main source of long-term financing of loans secured with a mortgage. |
| PKO BP BANKOWY PTE SA | The company’s activities consist of creating and managing an open and voluntary pension fund and representing it in contacts with third parties. The company manages PKO BP Bankowy Otwarty Fundusze Emerytalny (OFE) and PKO Dobrowolny Fundusz Emerytalny (DFE), within which the Individual Retirement Account (Indywidualne Konto Emerytalne – IKE) and Individual Retirement Security Account (Indywidualne Konto Zabezpieczenia Emerytalnego – IKZE) are offered. |
| PKO BP Finat Sp. z o.o. | PKO BP Finat Sp. z o.o. provides comprehensive services to companies in the financial sector – including transfer agent, fund and company accounting. It also specializes in competency outsourcing of IT specialists, project teams and IT processes. On the basis of the authorization of the Polish Financial Supervision Authority, the Company also provides services as a national payment institution. Its clients are both companies of the Group, as well as companies outside the Group. In 2016, the Company began to handle group insurance dedicated to the products offered by the Bank. From December 2017, the PKO BP Finat Sp. z o.o. Group also comprises KBC Towarzystwo Funduszy Inwestycyjnych SA and Net Fund Administration Sp. z o.o. The core business of KBC Towarzystwo Funduszy Inwestycyjnych SA is the creation, representation towards third parties and the management of open and closed investment funds and the management of client portfolios which include one or more financial instruments.Net Fund Administration Sp. z o.o. provides transfer agent services and IT services. |
| PKO Życie Towarzystwo Ubezpieczeń SA | The company’s core business consists of insurance activities in respect of insurance sector I – life insurance. The scope of the company’s activities comprises policies in all groups specified in the PF SA licence (1, 2, 3, 4, 5 Section I). The Company offers a wide range of insurance products. It focuses on life and health insurance for its clients. It has both separate products and products supplementing the banking products offered by the Bank. |
| PKO Towarzystwo Ubezpieczeń SA | The company’s core business consists of insurance activities in respect of insurance sector II – other personal insurance and property insurance. The scope of the company’s activities comprises policies in all groups specified in the PF SA licence (1, 2, 7, 8, 9, 13, 14, 15, 16, 17, 18 Section II).PKO TU SA focuses on insuring against loss of income, private third party liability insurance and sickness insurance as well as real property insurance for loan recipients and clients who draw mortgage loans. The company offers a wide range of insurance products addressed to customers of PKO Bank Polski SA and other members of the Bank’s Group. |
| PKO Finance AB | The company conducts financial activities, mainly by seeking financing from international markets by issue of bonds and by lending the funds obtained to other members of the Bank’s Group, including PKO Bank Polski SA. |
| Qualia Development Sp. z o.o. | The core business of the members of the Qualia Development Sp. z o.o. Group is development activities, including in particular housing construction projects in all parts of Poland. Moreover, the Group is engaged in the hotel business, and intermediary activity in real estate turnover.In 2017, the Group continued activities related to the execution of current projects and selling selected property and companies. |
| KREDOBANK SA | KREDOBANK SA is a univer SAl bank, focused on the customer service of retail clients and small- and medium-sized enterprises running the business mainly in the western part of Ukraine and in Kiev. At the SAme time the Company strives to attract corporate customers with high creditworthiness. The company offers services including maintaining the bank accounts of individuals and businesses, collecting deposits, lending, issuing warranties and guarantees, checks and bills trading, operations on the currency market, as well as operations on the securities market. The core business of Finansowa Kompania “Idea Kapitał” Sp. z o.o. – a subsidiary of KREDOBANK SA – is providing various financial services, including factoring services consisting in the acquisition of rights to the assignment of monetary claims under loan agreements in accordance with Ukrainian law. |
| Finansowa Kompania “Prywatne Inwestycje” Sp. z o.o. | The core company’s business is providing various financial services, including factoring services consisting in the acquisition of rights to the assignment of monetary claims under loan agreements in accordance with Ukrainian law. |
| ZenCard Sp. z o.o. | The company conducts activities in respect of information technology and computer services; it specializes in creating solutions connected with using payment cards in discount and loyalty programmes.The Company built a platform for sellers to create discount and loyalty programmes, which at the SAme time allows for the virtualization of loyalty cards. This platform is integrated with a payment terminal and allows resignation from numerous separate loyalty cards or separate applications installed on mobile phones in return for a customer payment card which at the SAme time is a virtual loyalty card of each vendor. The company’s strategic partner is CEUP eService Sp. z o.o. – one of the largest settlement agents in Poland. |
| Merkury – FIZ AN | The fund’s activities comprise investing money raised by non-public offer to purchase investment certificates. The Fund is managed by PKO TFI SA. The fund conducts investment activities through subsidiaries whose business is buying and selling real estate on its own account and property management. |
| NEPTUN - FIZ AN | The fund’s activities comprise investing money raised by non-public offer to purchase investment certificates. The Fund is managed by PKO TFI SA. PKO Bank Polski SA sells to the Fund shares of companies whose business is not complementary to the offer of financial services offered by the Bank. |
The PKO Bank Polski SA Group consists of the following subsidiaries:
| No. | NAME OF ENTITY | REGISTERED OFFICE | % SHARE IN EQUITY | |
|---|---|---|---|---|
| DIRECT SUBSIDIARIES | 31.12.2017 | 31.12.2016 | ||
| 1 | PKO Towarzystwo Funduszy Inwestycyjnych SA | Warsaw | 100 | 100 |
| 2 | PKO BP BANKOWY PTE SA | Warsaw | 100 | 100 |
| 3 | PKO Leasing SA | Łódź | 100 | 100 |
| 4 | PKO BP Finat Sp. z o.o. | Warsaw | 100 | 100 |
| 5 | PKO Życie Towarzystwo Ubezpieczeń SA | Warsaw | 100 | 100 |
| 6 | PKO Towarzystwo Ubezpieczeń SA | Warsaw | 100 | 100 |
| 7 | PKO Bank Hipoteczny SA | Gdynia | 100 | 100 |
| 8 | PKO Finance AB | Stockholm, Sweden | 100 | 100 |
| 9 | KREDOBANK SA | Lviv, Ukraine | 99,6293 | 99,6293 |
| 10 | Finansowa Kompania „Prywatne Inwestycje” Sp. z o.o.1 | Kiev, Ukraine | 95,4676 | 95,4676 |
| 11 | Qualia Development Sp. z o.o. | Warsaw | 100 | 100 |
| 12 | ZenCard Sp. z o.o.2 | Warsaw | 100 | - |
| 13 | Merkury - fiz an3 | Warsaw | 100 | 100 |
| 14 | NEPTUN - fizan3 | Warsaw | 100 | 100 |
1 The second shareholder of the entity is “Inter-Risk Ukraina” Additional Liability Company.
2 The company was acquired on 26 January 2017.
3 PKO Bank Polski SA has investment certificates of the Fund; the share in the Fund’s investment certificates is presented in the item “Share in equity”.
Indirect subsidiaries
| No. | NAME OF ENTITY | REGISTERED OFFICE | % SHARE IN EQUITY * | |
|---|---|---|---|---|
| DIRECT SUBSIDIARIES | 31.12.2017 | 31.12.2016 | ||
| GRUPA PKO Leasing SA1 | ||||
| 1 | PKO Leasing Sverige AB | Stockholm, Sweden | 100 | 100 |
| 2 | PKO Faktoring SA | Warsaw | 100 | 100 |
| 3 | PKO Leasing Nieruchomości Sp. z o.o.2 | Warsaw | 100 | 100 |
| 4 | PKO Agencja Ubezpieczeniowa Sp. z o.o.3 | Warsaw | 100 | 100 |
| PKO Leasing Finanse Sp. z o.o.4 | Warsaw | 100 | 100 | |
| 5 | ROOF Poland Leasing 2014 DAC5 | Dublin, Irland | - | - |
| GRUPA PKO BP Finat Sp. z o.o. | ||||
| 6 | KBC Towarzystwo Funduszy Inwestycyjnych SA6 | Warsaw | 100 | - |
| Net Fund Administration Sp. z o.o. | Warsaw | 100 | - | |
| GRUPA PKO Życie Towarzystwo Ubezpieczeń SA | ||||
| 7 | Ubezpieczeniowe Usługi Finansowe Sp. z o.o. | Warsaw | 100 | 100 |
| GRUPA KREDOBANK SA | ||||
| 8 | Finansowa Kompania „Idea Kapitał” Sp. z o.o. | Lviv, Ukraine | 100 | 100 |
| GRUPA Qualia Development Sp. z o.o.7 | ||||
| 9 | Qualia Sp. z o.o. | Warsaw | 100 | 100 |
| 10 | Qualia 2 Sp. z o.o. | Warsaw | 100 | 100 |
| 11 | Qualia 3 Sp. z o.o. | Warsaw | 100 | 100 |
| 12 | Qualia 3 spółka z ograniczoną odpowiedzialnością – Neptun Park Sp. k. | Warsaw | 99,9975 | 99,9975 |
| 13 | Qualia 2 spółka z ograniczoną odpowiedzialnością – Nowy Wilanów Sp. k. | Warsaw | 99,9750 | 99,9750 |
| 14 | Qualia spółka z ograniczoną odpowiedzialnością – Zakopane Sp. k. | Warsaw | 99,9123 | 99,9123 |
| 15 | Qualia Hotel Management Sp. z o.o. | Warsaw | 100 | 100 |
| 16 | Qualia - Residence Sp. z o.o. | Warsaw | 100 | 100 |
| 17 | Sarnia Dolina Sp. z o.o. | Warsaw | 100 | 100 |
| 18 | FORT MOKOTÓW Sp. z o.o. w likwidacji | Warsaw | 51 | 51 |
| Giełda Nieruchomości Wartościowych Sp. z o.o.8 | Warsaw | - | 100 | |
| Qualia sp. z o.o. – Sopot Sp. k.8 | Warsaw | - | 99,9787 | |
| Qualia spółka z ograniczoną odpowiedzialnością – Projekt 1 Sp. k.9 | Warsaw | - | 50 | |
| Merkury - fiz an | ||||
| 19 | „Zarząd Majątkiem Górczewska” Sp. z o.o. | Warsaw | 100 | 100 |
| 20 | Molina Sp. z o.o. | Warsaw | 100 | 100 |
| 21 | Molina spółka z ograniczoną odpowiedzialnością 1 S.K.A. | Warsaw | 100 | 100 |
| 22 | Molina spółka z ograniczoną odpowiedzialnością 2 S.K.A. | Warsaw | 100 | 100 |
| 23 | Molina spółka z ograniczoną odpowiedzialnością 3 S.K.A. | Warsaw | 100 | 100 |
| 24 | Molina spółka z ograniczoną odpowiedzialnością 4 S.K.A. | Warsaw | 100 | 100 |
| 25 | Molina spółka z ograniczoną odpowiedzialnością 5 S.K.A. | Warsaw | 100 | 100 |
| 26 | Molina spółka z ograniczoną odpowiedzialnością 6 S.K.A. | Warsaw | 100 | 100 |
| NEPTUN - fizan | ||||
| 27 | Bankowe Towarzystwo Kapitałowe SA | Warsaw | 100 | 100 |
| „Inter-Risk Ukraina" Spółka z dodatkową odpowiedzialnością10 | Kiev, Ukraine | 99,90 | - | |
| 28 | „CENTRUM HAFFNERA" Sp. z o.o. | Sopot | 72,9766 | 72,9766 |
| „Sopot Zdrój" Sp. z o.o. | Sopot | 100 | 100 | |
| „Promenada Sopocka" Sp. z o.o. | Sopot | 100 | 100 |
* share in equity of the direct parent
1 On 28 April 2017 Raiffeisen-Leasing Polska SA (as the acquiree) was merged with PKO Leasing SA (as the acquirer); until 27 April 2017, Raiffeisen-Leasing Polska SA was a direct subsidiary of PKO Leasing SA.
2 Former name: Raiffeisen-Leasing Real Estate Sp. z o.o.; until 27 April 2017, the company was a direct subsidiary of Raiffeisen-Leasing Polska SA.
3 Former name: “Raiffeisen Insurance Agency” Sp. z o.o.; until 27 April 2017, the company was a direct subsidiary of Raiffeisen-Leasing Polska SA.
4 Former name: Raiffeisen-Leasing Service Sp. z o.o.
5 PKO Leasing SA (as the legal successor of Raiffeisen-Leasing Polska SA), in accordance with IFRS 10, exercises control over the company, although it has no interest in the company’s share capital.
6 The company was acquired on 12 December 2017.
7 In the limited partnerships of the Qualia Development Sp. z o.o. Group, Qualia Development Sp. z o.o. is the limited partner, and general partners are, respectively: Qualia Sp. z o.o., Qualia 2 Sp. z o.o. and Qualia 3 Sp. z o.o.; according to the Articles of the aforesaid partnerships, the limited partner participates in 99.9% in profits, losses and assets of the limited partnership in the case of its liquidation, and the general partner - in 0.1%.; in the statement the limited partner’s share in the capital is presented in the amount of contributions made.
8 On 13 October 2017, there was a merger of Qualia sp. z o.o. - Sopot Sp.k. and Giełda Nieruchomości Wartościowych Sp. z o.o. (as acquirees) with Qualia Sp. z o.o. (as acquirer).
9 In 2017, the partnership was dissolved without liquidation proceedings.
10 The second partner of the company is Finansowa Kompania “Prywatne Inwestycje” Sp. z o.o.; up until 27 April 2017, it was a direct subsidiary of PKO Bank Polski SA.