Financial and
ESG report 2020

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:

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.

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.

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.

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;
  • Operating profit calculated as a measure of segment profit differs from the IFRS financial result before tax due to: share in net profits of associates, charge of bank tax and cost of provisions for legal risk resulted from FX mortgage loans. These items and the income tax burden were presented only at the Group level.

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.

Income statement 1.01.2020 – 31.12.2020

In ‘000 PLN Retail Banking Corporate Banking Treasury. ALM & Other Total
Net interest income 1 635 373 305 674 607 553 2 548 600
Net fee and commission income, including: 587 908 154 232 3 916 746 056
Fee and commission income 762 957 163 077 21 380 947 414
Fee and commission expenses (175 049) (8 845) (17 464) (201 358)
Dividends, other income from financial operations and foreign exchange profit 50 963 68 154 170 801 289 918
Result on non-trading financial assets mandatorily at fair value through profit or loss (42 920) 0 81 496 38 576
Other operating income and cost (16 246) (8 064) (63 984) (88 294)
Operating income 2 215 078 519 996 799 782 3 534 856
Staff costs (685 841) (142 216) (28 273) (856 330)
Administrative costs (534 563) (64 414) (87 072) (686 049)
Depreciation and amortization (190 088) (17 242) (3 081) (210 411)
Operating expenses (1 410 492) (223 872) (118 426) (1 752 790)
Impairment losses on assets (432 044) (124 912) (7 846) (564 802)
Results on modification (15 487) 1 922 0 (13 565)
Operating Profit 357 055 173 134 673 510 1 203 699
Share in net profit of associated companies 0
Provisions for legal risk connected with FX mortgage loans (713 617)
Banking tax (279 147)
Profit / (loss) before income tax 210 935
Income taxes (188 118)
Profit / (loss) after taxes 22 817

Balance sheet items as at 31.12.2020

In ‘000 PLN Retail Banking Corporate Banking Treasury. ALM & Other Total
Loans and advances to customers 57 819 969 16 268 373 0 74 088 342
Liabilities to customers 65 413 189 15 919 233 178 118 81 510 540

Income statement 1.01.2019 – 31.12.2019

In ‘000 PLN Retail Banking Corporate Banking Treasury. ALM & Other Total
Net interest income 1 836 855 322 981 277 083 2 436 919
Net fee and commission income, including: 545 134 152 924 1 095 699 153
Fee and commission income 724 985 162 878 12 024 899 887
Fee and commission expenses (179 851) (9 954) (10 929) (200 734)
Dividends, other income from financial operations and foreign exchange profit 102 500 67 492 82 762 252 754
Result on non-trading financial assets mandatorily at fair value through profit or loss (23 401) 0 89 104 65 703
Other operating income and cost (34 028) (12 455) 40 076 (6 407)
Operating income 2 427 060 530 942 490 120 3 448 122
Staff costs (661 851) (145 036) (29 502) (836 389)
Administrative costs (555 155) (56 419) (97 220) (708 794)
Depreciation and amortization (162 179) (15 838) (2 855) (180 872)
Operating expenses (1 379 185) (217 293) (129 577) (1 726 055)
Impairment losses on assets (318 881) (83 877) (1 178) (403 936)
Results on modification (12 188) 525 0 (11 663)
Operating Profit 716 806 230 297 359 365 1 306 468
Share in net profit of associated companies 0
Provisions for legal risk connected with FX mortgage loans (223 134)
Banking tax (247 991)
Profit / (loss) before income tax 835 343
Income taxes (274 611)
Profit / (loss) after taxes 560 732

Balance sheet items as at 31.12.2019

In ‘000 PLN Retail Banking Corporate Banking Treasury. ALM & Other Total
Loans and advances to customers 53 391 200 16 224 190 0 69 615 390
Liabilities to customers 63 811 244 17 506 007 137 514 81 454 765

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