PKO Bank Hipoteczny achieved a leading position in the Polish mortgage banks market by total assets and volume of mortgage loans. The Bank is also the largest regular issuer of covered bonds in Poland, operating on both Polish and foreign markets. The outstanding mortgage covered bonds issued by the Bank exceeds the half of the total market volume.
Total assets of PKO Bank Hipoteczny as at 30 June 2017 stood at PLN 12,134.5 million, up by 41% compared to the end of 2016. Mortgage loans were the key item on the assets side of the Bank’s balance sheet. Their value, taking into account impairment write-downs as at 30 June 2017, was PLN 11,538.6 million, of which new loans amounted to PLN 3,682.6 million, whereas loans purchased from PKO Bank Polski amounted to 7,856.0 million.
On the liabilities side, the share of covered bonds rose significantly and reached 50% of total assets at the end of June 2017. In H1 2017, PKO Bank Hipoteczny carried out:
- an issue of EUR-denominated covered bonds, by way of a private placement, worth EUR 25 million,
- a benchmark issue of EUR-denominated covered bonds, worth EUR 500 million,
- a benchmark issue of PLN-denominated covered bonds with floating rate, worth PLN 500 million,
- an issue of PLN-denominated covered bonds with fixed rate, worth PLN 265 million.
That brought the balance sheet value of covered bonds at the end of June 2017 to PLN 6,116.8 million.
PKO Bank Hipoteczny ended H1 2017 with a profit of PLN 25.1 million, an increase of PLN 24.9 million year on year. The most significant driver of the positive financial result was the improvement in net interest income as a result of the significant expansion in the scale of the Bank’s operations, coupled with limited growth in the cost base.
PKO Bank Hipoteczny began operating in April 2015. The Bank specialises in zloty-denominated housing loans and its main purpose is to secure long-term financing by issuing covered bonds. PKO Bank Hipoteczny is 100% owned by PKO Bank Polski.