2019 Financial
and Social Report

Summary of consolidated Group results in 2019

Solid operational profitability affected by Euro Bank acquisition and legal risk provisions

PLN 561 million

Net profit of 2019 at PLN 561 million, meaning 26% y/y decrease or 17% growth when adjusted for one-offs


PLN 205 million

of Euro Bank related integration costs and provisions

PLN 223 million

provisions for FX mortgage legal risk


Cost/income and adjusted cost/income at 47.4% (*)



ROE and adjusted ROE at 10.2% (*)

Income and costs influenced by the acquisition and merger of Euro Bank

27% y/y

Operating income

33% y/y

Net interest income

36% y/y

Operating costs (28% without integration costs)


PLN 66 million

Provision for cash loans fees returns after Court of Justice of EU ruling

High asset quality and liquidity kept



Impaired loans ratio


57 bp

Adjusted Cost of Risk**


Loans to Deposits ratio

Solid capital position and lower regulatory buffers



Group’s Total Capital Ratio (TCR)



CET1 ratio (incorporating 1H 2019 profit)

KNF reduced FX mortgage related Pillar 2 buffer to 4.9% and dividend related Stress Test buffer to 3%.

Retail business


2.6 million

active clients (+40% y/y) with +494k from Euro Bank acquisition and +240k achieved organically


y/y growth of deposits (+10% without Euro Bank)



y/y growth of loans (+9% without Euro Bank)


Over PLN 4 billion

sale of cash loans and mortgages each with high y/y growth of +28% and +26% respectively


89 thousand

total number of active micro business clients at year end

Cash loans sale in 4Q 2019 affected by Euro Bank migration, adjusted risk appetite and price.
Doubling pace of new microbusiness accounts acquisition (26% opened on-line).

Companies business

+19% y/y

Current accounts volumes

+7% y/y

Growth of loans to companies; + PLN 1.2 billion y/y

6.5% y/y

annual growth in factoring sales

Growing number

and volume of transactions in corporate business

Quality and Innovations

The highest

NPS ratio*** (52) among banks in Poland

The Best

Web Site Design in Central and Eastern Europe according to the Global Finance magazine

1.5 million

apps downloads by goodie – Bank’s smartshopping platform

(*) without one-offs (pre-tax): 1. integration costs (PLN 116 million) and extra risk provisions (PLN 89 million) for merged Euro Bank, 2. PLN 27 million release of tax asset provision (1Q 2019), 3. PLN 45 million of positive revaluation of shares in PSP (3Q 2019), 4. PLN 223 million provisions for FX mortgage legal risk (4Q 2019).
(**) total net provisions (including FV adjustment and modification effect) to average net loans, without extra IFRS9 provisions on Euro Bank acquired portfolio and without provisions on FX mortgage legal risk
(***) based on ARC Opinia i Rynek survey

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