Basic information on the Group and the Bank
Consolidated financial statements of the Powszechna Kasa Oszczędności Bank Polski SA Group (‘the PKO Bank Polski SA Group’, ‘the Group’) have been prepared for the year ended 31 December 2015 and include comparative data for the year ended 31 December 2014. Financial data has been presented in Polish zloty (PLN), rounded to thousand zloty, unless indicated otherwise.
The parent company of the Group is Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna (‘PKO Bank Polski SA’ or ‘the Bank’).
The Bank was established in 1919 as Pocztowa Kasa Oszczędnościowa. In 1950 it started operating as the Powszechna Kasa Oszczędności State-owned bank. Pursuant to the Decree of the Council of Ministers dated 18 January 2000 (Journal of Laws of 2000 No. 5, item 55 with subsequent amendments) Powszechna Kasa Oszczędności (a State-owned bank) was transformed into a State-owned joint-stock company, Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna with its Head Office in Warsaw, Puławska 15, 02-515 Warsaw, Poland.
On 12 April 2000, Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna was registered and entered into the Register of Companies by the District Court for the capital city of Warsaw, Commercial Court XVI Registration Department. At present, the appropriate court is the District Court for the capital city of Warsaw, XIII Economic Department of the National Court Register. The Bank was registered under entry No. KRS 0000026438 and was granted a statistical REGON No. 016298263. The paid share capital amounts to PLN 1 250 000 000.
According to the Warsaw Stock Exchange Bulletin (Ceduła Giełdowa), the Bank is classified under the macro-sector ‘Finance’, sector ‘Banks’.
Business activities of the Group
PKO Bank Polski SA is a universal deposit-loan commercial bank offering services to both residents and non-residents retail, corporate and other clients. PKO Bank Polski SA is licensed to hold foreign exchange and currencies and sell/buy them, as well as to perform a full range of foreign exchange services, to open and hold bank accounts abroad and to deposit foreign exchange in these accounts.
Moreover, through its subsidiaries, the Group offers mortgage loans, provides financial services relating to leasing, factoring, investment funds, pension funds, insurance and services of transfer agent, outsourcing of IT specialists and support services in the field of running a business by other entities, it conducts real estate development activities and manages real estate, and also through its entities in Ukraine it conducts banking, provides financial and debt collection services.
The scope of activities of each of the Group entities is set out in the item ‘Structure of the PKO Bank Polski SA Group’.
The Group operates in the Republic of Poland and through its subsidiaries: KREDOBANK SA, ‘Inter-Risk Ukraina’ Additional Liability Company, Finansowa Kompania ‘Prywatne Inwestycje’ Sp. z o.o., Finansowa Kompania ‘Idea Kapitał’ Sp. z o.o in Ukraine as well as through its subsidiaries PKO Finance AB and PKO Leasing Sverige AB in Sweden.
Moreover, on 7 December 2015 branch of PKO Bank Polski SA in Germany (the Branch in Germany) commenced its operational activities. The strategy of the Branch consists in offering the key corporate clients and theirs subsidiaries with their registered offices in Germany banking services and products on the German market.
Structure of the PKO Bank Polski SA Group
The PKO Bank Polski SA Group consists of the following direct and indirect subsidiaries:
| NAME OF ENTITY | HEAD OFFICE | RANGE OF ACTIVITY | % SHARE IN EQUITY* | |
|---|---|---|---|---|
| 31.12.2015 | 31.12.2014 | |||
| PKO Towarzystwo Funduszy Inwestycyjnych SA | Warsaw | investment funds management | 100.00 | 100.00 |
| PKO BP BANKOWY PTE SA | Warsaw | pension funds management | 100.00 | 100.00 |
| PKO Leasing SA | Łódź | leasing services | 100.00 | 100.00 |
| PKO Bankowy Leasing Sp. z o.o. | Łódź | leasing services | 100.00 | 100.00 |
| PKO Leasing Sverige AB | Stockholm. Sweden | leasing services | 100.00 | 100.00 |
| PKO BP Faktoring SA1 | Warsaw | factoring services | 100.00 | - |
| PKO BP Finat Sp. z o.o. | Warsaw | services . including transfer agent services and outsourcing of IT specialists | 100.00 | 100.00 |
| PKO Życie Towarzystwo Ubezpieczeń SA | Warsaw | life insurances | 100.00 | 100.00 |
| Ubezpieczeniowe Usługi Finansowe Sp. z o.o. | Warsaw | services | 100.00 | 100.00 |
| PKO Towarzystwo Ubezpieczeń SA | Warsaw | other personal and property insurance | 100.00 | - |
| PKO Bank Hipoteczny SA | Gdynia | banking activities | 100.00 | 100.00 |
| PKO Finance AB | Stockholm. Sweden | financial services | 100.00 | 100.00 |
| KREDOBANK SA | Lviv. Ukraine | banking activities | 99.5655 | 99.5655 |
| LFinansowa Kompania „Idea Kapitał” Sp. z o.o. | Lviv. Ukraine | financial services | 100.00 | 100.00 |
| „Inter-Risk Ukraina” Spółka z dodatkową odpowiedzialnością | Kiev. Ukraine | debt collection services | 100.00 | 100.00 |
| Finansowa Kompania „Prywatne Inwestycje” Sp. z o.o.2 | Kiev. Ukraine | factoring services | 95.4676 | 95.4676 |
| Qualia Development Sp. z o.o.3 | Warsaw | real estate development | 100.00 | 100.00 |
| Qualia 3 Sp. z o.o. | Warsaw | general partner in limited partnerships of the Qualia 3 spółka z ograniczoną odpowiedzialnością - Neptun Park Sp.k. | 100.00 | - |
| Qualia 3 spółka z ograniczoną odpowiedzialnością - Neptun Park Sp.k.4 | Warsaw | real estate development | 99.9975 | 99.9975 |
| Qualia 2 Sp. z o.o. | Warsaw | general partner in limited partnerships of the Qualia 2 spółka z ograniczoną odpowiedzialnością - Nowy Wilanów Sp.k. | 100.00 | - |
| Qualia 2 spółka z ograniczoną odpowiedzialnością - Nowy Wilanów Sp.k.5 | Warsaw | real estate development | 99.9750 | 99.9750 |
| Qualia Sp. z o.o. | Warsaw | general partner in limited partnerships of other entities of the Qualia Development Group | 100.00 | 100.00 |
| Qualia sp. z o.o. - Sopot Sp. k. | Warsaw | real estate development | 99.9902 | 99.9811 |
| Qualia spółka z ograniczoną odpowiedzialnością - Jurata Sp. k. | Warsaw | real estate development | 99.9770 | 99.9770 |
| Qualia spółka z ograniczoną odpowiedzialnością - Zakopane Sp. k. | Warsaw | real estate development | 99.9123 | 99.9123 |
| Qualia spółka z ograniczoną odpowiedzialnością - Pomeranka Sp. k. | Warsaw | real estate development | 99.8951 | 99.8951 |
| Qualia spółka z ograniczoną odpowiedzialnością - Projekt 1 Sp. k. | Warsaw | real estate development | 50.00 | 50.00 |
| Qualia spółka z ograniczoną odpowiedzialnością - Władysławowo Sp.k. | Warsaw | real estate development | 50.00 | 50.00 |
| Qualia Hotel Management Sp. z o.o. | Warsaw | real estate development | 100.00 | 100.00 |
| Qualia - Residence Sp. z o.o. | Warsaw | real estate development | 100.00 | 100.00 |
| Qualia - Rezydencja Flotylla Sp. z o.o. | Warsaw | real estate development | 100.00 | 100.00 |
| Fort Mokotów Inwestycje Sp. z o.o. | Warsaw | real estate development | 100.00 | 100.00 |
| Sarnia Dolina Sp. z o.o. | Warsaw | real estate development | 100.00 | 100.00 |
| Giełda Nieruchomości Wartościowych Sp. z o.o. | Warsaw | intermediation in the sale of real estate | 100.00 | 100.00 |
| Fort Mokotów Sp. z o.o. w likwidacji | Warsaw | in liquidation | 51.00 | 51.00 |
| Merkury - fiz an6 | Warsaw | placement of funds collected from fund members | 100.00 | 100.00 |
| „Zarząd Majątkiem Górczewska” Sp. z o.o. | Warsaw | real estate management | 100.00 | 100.00 |
| Molina Sp. z o.o. | Warsaw | general partner in limited joint-stock partnership entities of the Fund | 100.00 | 100.00 |
| Molina spółka z ograniczoną odpowiedzialnością 1 S.K.A. | Warsaw | purchase and sale of real estate for own account. real estate management | 100.00 | 100.00 |
| Molina spółka z ograniczoną odpowiedzialnością 2 S.K.A. | Warsaw | purchase and sale of real estate for own account. real estate management | 100.00 | 100.00 |
| Molina spółka z ograniczoną odpowiedzialnością 3 S.K.A. | Warsaw | purchase and sale of real estate for own account. real estate management | 100.00 | 100.00 |
| Molina spółka z ograniczoną odpowiedzialnością 4 S.K.A. | Warsaw | purchase and sale of real estate for own account. real estate management | 100.00 | 100.00 |
| Molina spółka z ograniczoną odpowiedzialnością 5 S.K.A. | Warsaw | purchase and sale of real estate for own account. real estate management | 100.00 | 100.00 |
| Molina spółka z ograniczoną odpowiedzialnością 6 S.K.A. | Warsaw | purchase and sale of real estate for own account. real estate management | 100.00 | 100.00 |
| NEPTUN - fiz an6 | Warsaw | placement of funds collected from fund members | 100.00 | - |
| Bankowe Towarzystwo Kapitałowe SA7 | Warsaw | services | 100.00 | - |
| „CENTRUM HAFFNERA” Sp. z o.o.8 | Sopot | subsidiaries' real estate management | 72.9766 | - |
| „Sopot Zdrój” Sp. z o.o. | Sopot | real estate management | 100.00 | - |
| „Promenada Sopocka” Sp. z o.o. | Sopot | rental services and real estate management | 100.00 | - |
* Share in equity of direct parent entity
1) The Entity was a subsidiary of Bankowe Towarzystwo Kapitałowe SA at the end of 2014
2) The second shareholder of the Entity is ‘Inter-Risk Ukraina’ Additional Liability Company.
3) For limited partnership entities of Qualia Development Group the total contribution made by the limited partner - Qualia Development Sp. z o.o. is presented in the position ‘Share in equity’.
4) Formerly: Qualia spółka z ograniczoną odpowiedzialnością – Neptun Park Sp. k.
5) Formerly: Qualia spółka z ograniczoną odpowiedzialnością – Nowy Wilanów Sp. k.
6) PKO Bank Polski SA has investment certificates of the Fund; the share of possessed investment certificates of the Fund is presented in the position ‘Share in equity’
7) As at the end of 2014 The Entity was a subsidiary of PKO Bank Polski SA.
8) As at the end of 2014 the Entity was subsidiary of PKO Bank Polski SA, and its subsidiaries are indirect subsidiaries of PKO Bank Polski SA.
The core business of subsidiaries
| PKO Towarzystwo Funduszy Inwestycyjnych SA | The core business of PKO Towarzystwo Funduszy Inwestycyjnych SA is the creation, representation towards third parties and the management of open and closed investment funds and management of clients portfolio, which include one or more financial instruments. The company also offers specialized investment programs and conducts employee pension programs (PPE). |
| PKO BP BANKOWY PTE SA |
PKO BP BANKOWY PTE SA operates in the area of pension funds. Manages PKO BP Bankowy Otwarty Fundusz Emerytalny (OFE) and PKO Dobrowolny Fundusz Emerytalny (DFE), within which Individual Retirement Account and Individual Retirement Security Account is offered. |
| PKO Bank Hipoteczny SA |
PKO Bank Hipoteczny SA specializes in mortgage lending. Based on the strategic cooperation with PKO Bank Polski SA these loans are offered to retail clients in Poland’s largest network of branches, brokers and agents. Additionally PKO Bank Hipoteczny SA is an issuer of mortgage bonds, which are a major source of long-term financing granted by the Company loans secured by real estate. |
| PKO Leasing SA | The Company together with its subsidiaries, PKO Bankowy Leasing Sp. z o.o. and PKO Leasing Sverige AB provides leasing services. Companies offer financial and operating leasing: cars, trucks, machinery and equipment, real estate, IT hardware and software, ships, aircraft and railway equipment. The offer includes a fleet management service. The Group PKO Leasing SA also includes PKO BP Faktoring SA, which provides services to domestic and export factoring with assuming the risk and without assuming the risk, reverse factoring and service of reverse factoring program for the suppliers. |
| 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 companies 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 PKO Bank Polski SA, including PKO Towarzystwo Funduszy Inwestycyjnych SA, PKO BANKOWY PTE SA, PKO Życie Towrzystwo Ubezpieczeń SA and PKO Bank Hipoteczny SA, as well as companies outside the Group. |
| PKO Życie Towarzystwo Ubezpieczeń SA | The company offers a wide range of protection and savings-investments products in the area of life insurance. Insurance is tailored to the needs of customers, dedicated to both young people, families and people of mature age. The insurance covers life and health of insured. |
| PKO Towarzystwo Ubezpieczeń SA | The core business of the Company is an insurance activity within the scope of section II of insurance – other personal insurance and property insurance. The Company commenced operating activities in January 2016 by launching the first offer of life insurance for individual customers of PKO Bank Polski SA, who are holders of credit cards. |
| PKO Finance AB | The core business of the Company is the acquisition of the Bank’s financial resources from international markets through bond issues. |
| Qualia Development Sp. z o.o. | The core business of the Group companies Qualia Development SP. z o.o. is to carry out developer activity and in particular the implementation of construction projects connected with carrying buildings, construction of building installations and finishing construction works. Moreover, the Group is engaged in the hotel business and brokerage activity in real estate turnover. |
| KREDOBANK SA | KREDOBANK SA is a universal bank, focused on customer service and retail clients of small and medium-sized enterprises running the business mainly in the western part of Ukraine and in Kiev. At the same time Company strives to attract corporate customers with high creditworthiness. The company offers services including maintaining bank accounts of individuals and businesses, collecting deposits, lending, issuing warrantees 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, including factoring services consisting in, according to Ukrainian law, the acquisition of rights to the assignment of monetary claims under the loan agreements. The company together with the company “Inter-Risk Ukraina” Sp. with D.O. conducts debt collection of credit receivables purchased from KREDOBANK SA. |
| „Inter-Risk Ukraina” Spółka z dodatkową odpowiedzialnością | The company operates in the area of debt collection in Ukraine, ie. it carries out activities to recover the debts of other entities without acquiring them on their own account (negotiations with debtors, restructuring activities, litigation and enforcement proceedings and participation in the process of taking over assets in debt). Its customers are Finansowa Kompania “Prywatne Inwestycje” Sp z .o.o. and companies from KREDOBANK SA Group. The company also manages commercial real estate in Lviv, including the building of the KREDOBANK SA headquarter. |
| Finansowa Kompania „Prywatne Inwestycje” Sp. z o.o. | The Company’s business is to provide various financial services, including factoring services which according to Ukrainian law, consisting of the acquisition of rights to the assignment of monetary claims under the loan agreements. The company together with the company “Inter-Risk Ukraina” Sp. d.o. conducts debt collection of credit receivables purchased from KREDOBANK SA. |
| Merkury - fiz an | The core business of the Fund is to invest in the funds collected by non-public offering of investment certificates. The Fund is managed by PKO Towarzystwo Funduszy Inwestycyjnych SA. Fund conducts investment activities through subsidiaries which business is buying and selling real estate for its own account and property management. |
| NEPTUN - fizan | The core business of the Fund is to invest in the funds collected by non-public offering of investment certificates. The Fund is managed by PKO Towarzystwo Funduszy Inwestycyjnych SA. PKO Bank Polski SA sells shares (to the Fund) of companies which business is not complementary to the offer of financial services of the Bank. |
Additionally, the Bank holds the following associates and joint ventures included in the consolidated financial statements
| NAME OF ENTITY | HEAD OFFICE | RANGE OF ACTIVITY | % SHARE IN EQUITY* | |
| 31.12.2015 | 31.12.2014 | |||
| Joint ventures of PKO Bank Polski SA | ||||
| Centrum Elektronicznych Usług Płatniczych eService Sp. z o.o. |
Warsaw | activities supporting financial services, including servicing of transactions made by payment instruments | 34.00 | 34.00 |
| EVO Payments International Sp z.o.o. | Warsaw | activities supporting financial services | 100 | - |
| EVO Payments International s.r.o. | Prague, Czech Republic | activities supporting financial services | 100 | - |
| Joint ventures of NEPTUN - fizan | ||||
| „Centrum Obsługi Biznesu” Sp. z o.o. | Poznań | hotel management | 41.44 | - |
| Associates of PKO Bank Polski SA | ||||
| Bank Pocztowy SA | Bydgoszcz | banking activities | 25.0001 | 25.0001 |
| Centrum Operacyjne Sp. z o.o. | Bydgoszcz | activities supporting financial services | 100.00 | 100.00 |
| Spółka Dystrybucyjna Banku Pocztowego Sp. z o.o. | Warsaw | intermediary financial services | 100.00 | 100.00 |
| „Poznański Fundusz Poręczeń Kredytowych” Sp. z o.o. | Poznań | guarantees | 33.33 | 33.33 |
| FERRUM SA | Katowice | production of welded steel pipes, production of structural hollow section and delivering coating services | 20.97 | - |
| Zakład Konstrukcji Spawanych FERRUM SA | Katowice | production of steel structures and their component | 100.00 | - |
| FERRUM MARKETING Sp. z o.o. | Katowice | marketing services | 100.00 | - |
* Share in equity of direct parent entity.
1) The Entity was a joint venture of PKO Bank Polski SA at the end of 2014.
Information on changes in share capital of subsidiaries is included in the note 50 ‘Changes to the entities of the Group’.
Information on members of the Supervisory and Management Board of the Bank
As at 31 December 2015, the Bank's Supervisory Board consisted of:
- Jerzy Góra - Chairman of the Supervisory Board
- Mirosław Czekaj - Deputy-Chairman of the Supervisory Board
- Małgorzata Dec-Kruczkowska - Secretary of the Supervisory Board
- Zofia Dzik - Member of the Supervisory Board
- Krzysztof Kilian - Member of the Supervisory Board
- Piotr Marczak - Member of the Supervisory Board
- Elżbieta Mączyńska – Ziemacka - Member of the Supervisory Board
- Marek Mroczkowski - Member of the Supervisory Board
On 25 June 2015 the Ordinary General Shareholders’ Meeting of the Bank dismissed as of that day the member of the Supervisory Board of PKO Bank Polski SA - Mr Jarosław Klimont, appointed Mrs Małgorzata Dec-Kruczkowska, and Mr Krzysztof Kilian as members of the Supervisory Board of the Bank. Simultaneously Mr Tomasz Zganiacz resigned as of that day from his function as a member of the Supervisory Board. On 23 September 2015 Mrs Mirosława Boryczka resigned as of 30 September 2015 from her function as a member of the Supervisory Board.
On 25 February 2016 the Extraordinary General Shareholders’ Meeting of the Bank on the basis of Article 385 § 1 of the Commercial Companies Code dismissed from the Supervisory Board of the Bank: Mr Jerzy Góra, Mr Mirosław Czekaj, Mr Piotr Marczak, Mr Marek Mroczkowski, Mr Krzysztof Kilian and Mrs Zofia Dzik.
Moreover the Extraordinary General Shareholders’ Meeting of the Bank on the basis of Article 385 § 1 of the Commercial Companies Code appointed the Supervisory Board: Mr Mirosław Barszcz, Mr Adam Budnikowski, Mr Wojciech Jasiński, Mr Andrzej Kisielewicz, Mr Janusz Ostaszewski, Mr Piotr Sadownik and Mrs Agnieszka Winnik – Kalemba as Vice-President of the Supervisory Board.
The State Treasury, as the Entitled Shareholder on the basis of § 12 clause 1 of the Bank's Statue appointed Mr Piotr Sadownik as Chairman of the Supervisory Board of the Bank and Mrs Agnieszka Winnik – Kalemba as Deputy-Chairman of the Supervisory Board of the Bank.
As at 31 December 2015 the Bank's Management Board consisted of:
- Zbigniew Jagiełło - President of the Management Board
- Piotr Alicki - Vice-President of the Management Board
- Bartosz Drabikowski - Vice-President of the Management Board
- Piotr Mazur - Vice-President of the Management Board
- Jarosław Myjak - Vice-President of the Management Board
- Jacek Obłękowski - Vice-President of the Management Board
- Jakub Papierski - Vice-President of the Management Board
During the year ended 31 December 2015 no changes took place in the composition of the Bank’s Management Board.
Approval of financial statements
Consolidated financial statements, reviewed by the Bank’s Supervisory Board’s Audit Committee on 3 March 2016, have been approved for issuance by the Bank's Management Board on 1 March 2016 and will be accepted by the Supervisory Board of the Bank on 3 March 2016.