Operational segments
Information about operating segments has been prepared based on the reporting structure which is used by the Management Board of the Bank for evaluating the results and managing resources of operating segments. Group does not apply additional breakdown of activity by geographical areas because of the insignificant scale of operations performed outside the Poland, in result such complementary division is not presented.
The Group’s activity is pursued on the basis of diverse business lines, which offer specific products and services targeted at the market segments listed below:
Retail Customer Segment +
The Retail Customers Segment covers activity targeted at mass-market Customers, affluent Customers, small companies and individual entrepreneurs.
The activity of the above business lines is developed with use of the full offer of banking products and services as well as sales of specialised products offered by subsidiaries in the group. In the credit products area the key products are mortgage loans, retail credit products, credit card revolving credit as well leasing products for small companies. Meanwhile key Customers funds include: current and saving accounts, term deposits, mutual funds and structured products. Additionally the offer comprises insurance products, mainly linked with loans and credit cards, as well as specialised savings products. The product offer for affluent customers was enriched to include selected mutual funds of other financial intermediaries, foreign funds and structured bonds issued by the Bank.
Corporate Customer Segment +
The Corporate Customers Segment is based on activity targeted at Small and Medium sized Companies as well as Large Corporations. The offer is also addressed to Customers from the Public Sector.
Business in the Corporate Customers segment is pursued with use of a high quality offer of typical banking products (loans for day-to-day activity, investment loans, current accounts, term deposits) supplemented by a range of cash management products as well as treasury products (including derivatives) and leasing and factoring services.
Treasury, ALM (assets and liabilities management) and Other +
This segment covers the Group’s activity as regards investments by the Treasury Department, brokerage, inter-bank market transactions and taking positions in debt securities, which are not assigned to other segments.
This segment includes other assets and other liabilities, assets and liabilities connected with hedging derivatives, liabilities connected with external funding of the Group and deferred income tax assets not assigned to any of the segments.
Income tax and banking tax charges have been presented on Group level only.
For each segment the pre-tax profit is determined, comprising:
- Net interest income calculated on the basis of interest on external working assets and liabilities of the segment as well as allocated assets and liabilities generating internal interest income or cost. Internal income and costs are calculated based on market interest rates with internal valuation model applied;
- Net commission income;
- Other income from financial transactions and FX gains, such as: dividend income, result on investment and trading activity, FX gains/losses and result on other financial instruments;
- Other operating income and expenses;
- Costs on account of impairment of financial and non-financial assets;
- Segment share in operating costs, including personnel and administration costs;
- Segment share in depreciation costs.
The assets and liabilities of commercial segments are the operating assets and liabilities used by the segment in its operations, allocated on business grounds. The difference between operating assets and liabilities is covered by money market assets/liabilities and debt securities. The assets and liabilities of the Treasury, ALM & Other segment are money market assets/liabilities and debt securities not allocated to commercial segments.
In accordance with Recommendation P, the Group commencing from January 2016 allocates a liquidity premium to particular operating segments. Consequently data per segment for 2016 is not directly comparable with data for 2015 which do not contain information about the liquidity premium.
Income statement 1.01.2016 – 31.12.2016
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| In ‘000 PLN | Retail Banking | Corporate Banking | Treasury. ALM & Other | Total |
|---|---|---|---|---|
| Net interest income | 1 058 188 | 265 729 | 181 921 | 1 505 838 |
| Net interest income – excluding liquidity premium | 1 184 066 | 270 949 | 50 823 | 1 505 838 |
| Impact of liquidity premium | (125 878) | (5 220) | 131 098 | 0 |
| Net fee and commission income | 429 224 | 147 066 | 4 734 | 581 024 |
| Dividends. other income from financial operations and foreign exchange profit | 66 555 | 66 369 | 357 648 | 490 572 |
| Other operating income and cost | (24 778) | (12 121) | (68 320) | (105 219) |
| Operating income | 1 529 189 | 467 043 | 475 983 | 2 472 215 |
| Staff costs | (403 290) | (129 170) | (26 298) | (558 758) |
| Administrative costs | (386 738) | (85 508) | (26 462) | (498 708) |
| Depreciation and amortization | (45 415) | (8 435) | (1 004) | (54 854) |
| Operating expenses | (835 443) | (223 113) | (53 764) | (1 112 320) |
| Impairment losses on assets | (228 519) | 675 | (3 350) | (231 194) |
| Operating Profit | 465 227 | 244 605 | 418 869 | 1 128 701 |
| Share in net profit of associated companies | 0 | 0 | (1 376) | (1 376) |
| Banking tax | (174 069) | |||
| Profit / (loss) before income tax | 953 256 | |||
| Income taxes | (252 004) | |||
| Profit / (loss) after taxes | 701 252 |
Balance sheet items as at 31.12.2016
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| In ‘000 PLN | Retail Banking | Corporate Banking | Treasury. ALM & Other | Total |
|---|---|---|---|---|
| Loans and advances to customers | 34 432 196 | 12 587 847 | 0 | 47 020 043 |
| Liabilities to customers | 41 858 722 | 13 899 932 | 116 955 | 55 875 609 |
Income statement 1.01.2015 – 31.12.2015
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| In ‘000 PLN | Retail Banking | Corporate Banking | Treasury. ALM & Other | Total |
|---|---|---|---|---|
| Net interest income | 1 069 760 | 261 357 | 34 130 | 1 365 247 |
| Net fee and commission income | 448 547 | 139 435 | 8 191 | 596 173 |
| Dividends, other income from financial operations and foreign exchange profit | 64 145 | 63 394 | 91 968 | 219 507 |
| Other operating income and cost | (16 820) | (21 907) | (125 026) | (163 753) |
| Operating income | 1 565 632 | 442 279 | 9 263 | 2 017 174 |
| Staff costs | (398 749) | (121 690) | (26 466) | (546 905) |
| Administrative costs | (383 291) | (80 620) | (25 798) | (489 709) |
| Depreciation and amortization | (41 135) | (7 993) | (1 307) | (50 435) |
| Operating expenses | (823 175) | (210 303) | (53 571) | (1 087 049) |
| Impairment losses on assets | (197 982) | (41 845) | (1 406) | (241 233) |
| Operating Profit | 544 475 | 190 131 | (45 714) | 688 892 |
| Share in net profit of associated companies | 0 | 0 | (1 385) | (1 385) |
| Profit / (loss) before taxes | 544 475 | 190 131 | (47 099) | 687 507 |
| Income taxes | (140 982) | |||
| Profit / (loss) after taxes | 546 525 |
Balance sheet items as at 31.12.2015
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| In ‘000 PLN | Retail Banking | Corporate Banking | Treasury. ALM & Other | Total |
|---|---|---|---|---|
| Loans and advances to customers | 34 069 756 | 12 299 625 | 0 | 46 369 381 |
| Liabilities to customers | 37 804 872 | 14 907 750 | 97 767 | 52 810 389 |