Consolidated statement of financial position

The main items of the statement of financial position

The statement of financial position of the PKO Bank Polski SA Group is mainly influenced by the statement of financial position of the parent entity. It determines both the size of total assets and the structure of assets and liabilities.The total assets of the PKO Bank Polski SA Group amounted to PLN 266.9 billion as at the end of 2015, which means an increase by 7.3% y/y.

Assets structure (PLN million)





Liabilities structure (PLN million)





The increase in total assets of the PKO Bank Polski SA Group was mainly due to an increase in the volume of loans and advances to customers by PLN 10 916.3 million y/y. The increase in total assets was financed mainly by an increase in amounts due to customers by PLN 21 371.7 million y/y.

Main items of the statement of financial position of the PKO Bank Polski SA Group (in PLN million)

  31.12.2015 31.12.2014 Change (mln PLN) Change (%)
Cash and balances with the central bank 13 743.9 11 738.4 2 005.5 17.1%
Amounts due from banks 4 553.0 2 486.7 2 066.3 83.1%
Loans and advances to customers 190 413.7 179 497.4 10 916.3 6.1%
Securities 44 457.1 40 160.2 4 297.0 10.7%
Other assets 13 772.2 14 818.0 -1 045.8 -7.1%
Total assets 266 939.9 248 700.6 18 239.3 7.3%
Amounts due to banks 18 293.0 19 398.9 -1 105.9 -5.7%
Amount due to costumers 195 758.5 174 386.8 21 371.7 12.3%
Debt securities in issueand subordinated liabilites 11 932.1 15 714.6 -3 782.5 -24.1%
Liabilities of insurance activities 2 400.5 2 679.7 -279.2 -10.4%
Other liabilities 8 290.9 8 905.0 -614.1 -6.9%
TOTAL LIABILITIES 236 675.0 221 085.0 15 590.0 7.1%
Total equity 30 264.9 27 615.6 2 649.4 9.6%
Total liabilities and equity 266 939.9 248 700.6 18 239.3 7.3%
Loans/Deposits 97.3% 102.9%   -5.7 p.p.
Loans/Stable sources of funding* 85.0% 86.4%   -1.4 p.p.
Interest bearing assets/Assets 89.7% 89.3%   0.4 p.p.
Interest paying liabilities/Liabilities 84.7% 84.2%   0.4 p.p.

* Stable sources of financing include amounts due to customers and external financing in the form of: issue of securities, subordinated liabilities and amounts due to financial institutions.

Loans and advances to customers

In the structure of the net loan portfolio by type, the main items were loans and advances to the non-financial sector (92.2% of the portfolio as at the end of 2015). Housing loans, volume of which increased by 5.1% y/y were the main item of loans and advances to the non-financial sector (57.3% of the portfolio as at the end of 2015). In 2015, an increase in consumer loans by PLN 1.6 billion was noted.

Loans and advances to customers of the PKO Bank Polski SA – structure by type (in PLN million)

  31.12.2015 31.12.2014 Change (mln PLN) Change (%)
Loans and advances to customers net 190 413.7 179 497.4 10 916.3 6.1%
Financial sector (without banks) 4 826.6 1 620.7 3 205.8 3x
Non-financials 175 619.1 167 792.0 7 827.1 4.7%
mortgages 100 668.6 95 798.0 4 870.6 5.1%
business loans 50 398.8 49 656.3 742.5 1.5%
consumer loans 21 959.8 20 321.7 1 638.1 8.1%
debt securities and repurchase agreements 2 591.9 2 016.0 575.9 28.6%
Budget sector 9 968.1 10 084.7 (117) -1.2%
business loans 7 275.4 7 265.0 10.4 0.1%
debt securities 2 692.7 2 819.7 (127) -4.5%

In term structure of loans and advances to customers dominate long-term loans (75.3% of the portfolio) which increased by 1.8% y/y compared to 2014 as a result of the growth of the housing loan portfolio. Short-term loans, with a share of 24.7% recorded a dynamic growth of 21.2% y/y.

Loans and advances to customers of the PKO Bank Polski SA Group – term structure (in PLN million)

  31.12.2015 31.12.2014 Change (mln PLN) Change (%)
Loans and advances to customers (gross) 198 700.9 187 519.9 11 181.1 6.0%
Short-term 49 020.4 40 440.6 8 579.8 21.2%
Long-term 149 680.5 147 079.3 2 601.3 1.8%
Write-downs - total (8 287.2) (8 022.5) (264.7) 3.3%
Total 190 413.7 179 497.4 10 916.3 6.1%

Securities

As at the end of 2015, the securities portfolio of the PKO Bank Polski SA Group amounted to PLN 44.4 billion and recorded an increase by PLN 4.3 billion compared with the end of 2014. In the structure of the portfolio by type, the main items were debt securities issued by central banks and issued by the State Treasury.

Securities portfolio of the PKO Bank Polski SA Group (in PLN million)

  31.12.2015 31.12.2014 Change (mln PLN) Change (%)
Financial instruments valued at fair value through profit or loss account 15 154.1 15 723.1 (569) -3.6%
Available-for-sale investment securities 28 309.5 22 279.2 6 030.3 27.1%
Financial assets held for trading 783.2 1 924.4 (1 141) -59.3%
Held-to-maturity securities 210.3 233.4 (23) -9.9%
Total 44 457.1 40 160.2 4 297.0 10.7%

Amounts due to customers

In the structure of amounts due to customers by types, the main items are amounts due to retail clients (69.2% of the portfolio as at the end of 2015), along with an increase in share of amounts due to corporate entities and liabilities of the budgetary unit.

Amounts due to customers of the PKO Bank Polski SA Group structure by type (in PLN million)

  31.12.2015 31.12.2014 Change (mln PLN) Change (%)
Client deposits 135 410.4 128 675.6 6 734.8 5.2%
Liabilities towards enterprises 51 213.7 40 932.9 10 280.9 25.1%
Liabilities towards budget entities 9 134.4 4 778.3 4 356.0 91.2%
Total liabilities towards customers 195 758.5 174 386.8 21 371.7 12.3%

In 2015, the term structure of amounts due to customers changed. The share of liabilities with maturity up to 1 month inclusive increased and represented 63.3% of all amounts due to customers as at 31 December 2015, the biggest increase was visible in the share of liabilities with maturities of over 1 to 3 months inclusive.

Amounts due to customers of the PKO Bank Polski SA Group – term structure (in PLN million)

  31.12.2015 31.12.2014 Change (mln PLN) Change (%)
Up to 1 month 126 532,3 109 773,3 16 759,0 15,3%
1 month - 3 months 21 867,5 12 560,3 9 307,2 74,1%
3 months - 1 year 34 840,3 35 033,6 (193) -0,6%
1 year - 5 years 10 564,6 16 953,6 (6 389) -37,7%
over 5 years 6 191,7 2 099,2 4 092,6 2.9x
Adjustment of the value and interest (4 238) (2 033) (2 205) 2.1x
Total liabilities due to customers 195 758,5 174 386,8 21 371,7 12,3%

External financing

The PKO Bank Polski SA Group is an active participant in the market of debt security issues, both local and international. These actions are intended to diversify the sources of financing of operations and to adapt them to regulatory requirements. As at the end of 2015 the main item in these sources of financing constituted loans received from monetary financial institutions, including above all credit line from Nordea Bank AB (publ), being a part of the transaction of acquisition of the Nordea Group’s assets by PKO Bank Polski SA (received for the purpose of financing the acquired portfolio of mortgage loans).

Next significant category of long-term financing was debt securities in issue. The decrease of these liabilities is the effect of the repayment of the bond issued in the amount of EUR 800 million in October 2015 and CHF 500 million in December 2015 within the EMTN programme.

The volume of subordinated liabilities, which include a subordinated loan in CHF of acquired Bank, remained stable.

Detailed information on the issues carried out by the PKO Bank Polski SA Group is described in note 35 of the Consolidated Financial Statements of the PKO Bank Polski SA Group for the year ended 31 December 2015.

External financing of the PKO Bank Polski SA Group (in PLN million)

  31.12.2015 31.12.2014 Change (mln PLN) Change (%)
Liabilities due to issuance of securities 9 433.0 13 300.6 (3 868) -29.1%
Subordinated liabilities 2 499.2 2 414.0 85.2 3.5%
Loans and borrowings received - monetary institutions* 16 418.1 17 643.6 (1 226) -6.9%
Loans and borrowings received - non-monetary institutions** 3 924.1 3 421.7 502.4 14.7%
Total 32 274.3 36 779.9 (4 506) -12.3%
* In the Statement of financial position of PKO Bank Polski SA Group carried in a position "liabilities due to banks".
** In the Statement of financial position of PKO Bank Polski SA Group carried in a position "liabilities due to clients".

Equity and capital adequacy ratio

Equity of the PKO Bank Polski SA Group increased by 9.6% per annum and accounted for 11.3% of total equity and liabilities as at the end of 2015. As at 31 December 2015 capital adequacy measures were calculated based on the CRR Regulation.

The total capital adequacy ratio of the PKO Bank Polski SA Group amounted to 14.61% as at the end of 2015, thereby was 1.6 p.p. higher than achieved as at the end of 2014. The improve of the rate is due to the increase in equity as a result of transferring a part of profit from 2014 and the lack of dividends payment, as well as actions carried out in order to reduce risk-weighted assets The most important source of conducted actions in order to optimize risk-weighted assets was to improve the quality of data (such as inclusion in the category of retail exposures all SME customers meeting the criteria of segmentation) and a review of off-balance liabilities, including verification of assigned risk weights of the product.      

Equity and total capital ratio of the PKO Bank Polski SA Group (in PLN million)

  31.12.2015 31.12.2014 Change (mln PLN) Change (%)
Equity, including: 30 264.9 27 615.6 2 649.4 9.6%
Share capital 1 250.0 1 250.0 0.0 0.0%
Supplementary capital 20 711.2 18 802.4 1 908.8 10.2%
The general banking risk fund 1 070.0 1 070.0 0.0 0.0%
Other reserve capital 3 536.4 3 474.1 62.3 1.8%
Financial assets available for sale 170.6 31.0 139.6 5.5x
Share in other comprehensive income of the associated entities (0.2) 1.0 (1.2) x
Cash flow hedging (57.7) 5.2 (62.9) x
Actuarial gains and losses (12.6) (9.0) (3.6) 39.9%
FX differences arising from translation of the result of foreign entities (216.5) (192.7) (23.8) 12.4%
Undistributed financial result 1 222.4 (60.7) 1 283.1 x
Current net profit 2 609.6 3 254.1 (644.6) -19.8%
Non-controlling interests (18.4) (10.0) (8.4) 83.4%
Own funds 27 091.4 24 743.2 2 348.3 9.5%
Capital adequacy ratio 14.61% 12.96%   1.64 p.p.

Increase of the average assets (by 12.7% y/y) and a significant strengthening of the capital base (increase in average equity of 9.7% y/y), with negative growth resulted in a deterioration of profitability: assets (ROA) and equity (ROE) respectively by 0.4 p.p. and 3.3 p.p. Deterioration of profitability reflects a trend in the market, lower scores are recorded in the entire banking sector.

ROE PKO Bank Polski SA Group/risk-free rate*

* risk-free rate is calculated as an average yearly return from 10-years State Treasury Bonds.