- In 2021, PKO Bank Hipoteczny’s profit before tax amounted to PLN 141.7 and its net profit reached PLN 94.9 million.
- As at the end of December 2021, the bank continued to be the leader of the Polish mortgage bank market in terms of the balance of mortgage covered bonds in trading, with mortgage covered bond of PLN 13.1 billion.
- The loan portfolio of PKO Bank Hipoteczny exceeded PLN 22.8 billion as at the end of December 2021 and maintained a very high quality in terms of the credit risk.
2021 was yet another year of stable financial results in PKO Bank Hipoteczny’s operations. Profit before tax amounted to PLN 141.7 million, i.e. was PLN 14.9 million higher than in the prior year, while the net profit for 2021 amounted to PLN 94.9, which represents an increase of PLN 13.3 million compared with the prior year.
Net interest income amounted to PLN 304.1 million in that period, which represents a decrease of almost 8% resulting mainly from amortization of the loan portfolio. Net allowances for expected credit losses amounted to as little as PLN 3.2 million compared with PLN 35.7 million in the prior year, which was mainly due to improving forecasts of the key macroeconomic indicators.
Despite having to incur costs of regulatory charges of PLN 24.8 million and costs of tax on certain financial institutions of PLN 83.8 million, the Bank’s profitability has remained stable.
“In the past year, PKO Bank Hipoteczny generated satisfactory financial results. We have maintained a high profitability of the mortgage loan portfolio while keeping the cost of the risk at a very low level. At the same time, we continuously strive to improve our operating effectiveness and to streamline the processes executed in the bank. In tandem with PKO Bank Polski, we also implement solutions which support our customers, including those relating to further development of remote service processes”, said Daniel Goska, President of the Management Board of PKO Bank Hipoteczny.
As at the end of 2021, total assets amounted to PLN 25.6 billion with PLN 22.8 billion worth of residential mortgage loans as the key item of assets. PKO Bank Hipoteczny acquires loans for its portfolio through strategic cooperation with PKO Bank Polski, including through selling residential loans in the largest network of branches, intermediaries and agents in Poland, and by purchasing receivables portfolios from PKO Bank Polski. In 2021, PKO Bank Hipoteczny granted mortgage loans amounting to PLN 364 million and purchased receivables from PKO Bank Polski of PLN 158 million.
As at the end of 2021, the balance of unsecured bonds amounted to PLN 3.7 billion. The balance of mortgage covered bonds issued by the bank which remained in trading as at the end of December 2021 was PLN 13.1 billion. It accounted for approximately 57 per cent of the total amount of mortgage covered bonds issued by Polish banks. This positions PKO Bank Hipoteczny as the largest issuer of mortgage covered bonds in Poland.
Towards the end of the first half of 2021, the bank introduced to its offer the possibility of changing the interest rate on mortgage loans from variable to fixed for the entire loan portfolio over a period of 5 years, in line with Recommendation S of the Polish Financial Supervision Authority.
“It is a strategic objective of our bank to ensure that the PKO Bank Polski Group is ready to issue mortgage covered bonds, including green bonds. By being able to issue green mortgage covered bonds, we are in tune with global ESG trends and reaffirm the importance of sustainable development in our bank's operations.In 2021, as the first bank from Poland, we joined the international Energy Efficient Mortgage Label initiative. This is another of our initiatives to support the EU Green Deal, climate neutrality and the alignment of our loan product portfolio with regulatory changes such as the new EU Taxonomy”, emphasized Goska.
Mortgage covered bonds are a type of bond which are secured with mortgage loan receivables. PKO Bank Hipoteczny’s mortgage bonds are issued on the basis of solely residential mortgage loans in Polish zlotys which are granted based on conservative criteria in terms of both the assessment of creditworthiness and the valuation of the underlying real properties. The high security of PKO Bank Hipoteczny's mortgage bonds is reflected in the Aa1 rating assigned by Moody’s Investors Service in December 2020. It is the highest possible rating for Polish debt securities.
Contact for the media
Anna Słupczyńska
Communication and IR Expert
e-mail: anna.slupczynska@pkobh.pl
mobile phone +48 721 200 079