- Following dynamic growth PKO Bank Hipoteczny achieved positive net financial result already in the second year of its operational activity.
- The Bank’s total assets accounted for 8.6 billion zloty which indicates over tenfold growth towards the end of 2015.
- The Bank was the most active Polish issuer of covered bonds in 2016.
Due to beneficial cooperation with PKO Bank Polski Group in granting new residential mortgage loans as well as acquiring such loans from PKO Bank Polski, the value of Bank’s credit portfolio exceeded 8 billion zloty.
Such a dynamic growth of PKO Bank Hipoteczny allowed to achieve positive net financial result already in the second year of its operational activity.
Rafał Kozłowski, CEO of PKO Bank Hipoteczny, said: The year 2016 was for us the time of particularly intensive development and many challenges. I would like to thank investors for the confidence placed in PKO Bank Hipoteczny, and all employees of the Bank and the PKO Bank Polski Group for their commitment, professionalism and effectiveness.
In 2016 PKO Bank Hipoteczny succeeded in achieving its strategic goals. The Bank was the most active Polish issuer of covered bonds. It conducted two benchmark Polish zloty-denominated covered bonds issues with a total value of 1 billion zloty, as well as Poland’s first ever benchmark issue of Euro-denominated covered bonds with a value of 500 million euro. Therefore the value of covered bonds on the Bank’s balance sheet at the end of 2016 stood at PLN 3.2 billion.
The covered bonds issued by PKO Bank Hipoteczny are purely backed by Polish zloty-denominated residential mortgage loans, which meet conservative lending criteria, both in terms of assessment of the borrower creditworthiness and in the valuation of the property that secures as a collateral.
Following PKO Bank Polski, we developed the strategy for 2017-2020. Rafał Kozłowski, CEO of PKO Bank Hipoteczny, said: According to the strategy we responsibly promote the interests of the Bank’s stakeholders. We deliver mortgage loan products adapted to clients’ needs and long-term covered bonds with the high level of safety.
Selected financial data derived from the financial statements PKO Bank Hipoteczny SA
bn PLN | 2016 | 2015 | change |
Net profit/ (loss) | 13.2 | (12.6) | 25.8 |
Result on business activity | 59.2 | 4.9 | 54.3 |
General administrative expenses | (39.3) | (20.2) | (19.1) |
Tax on financial institutions | (4.3) | - | (4.3) |
Impairment allowance and write-downs | (1.6) | (0.2) | (1.4) |
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Total assets (bn PLN) | 8,610.4 | 791.5 | 7,818.9 |
Loans and advances to customers, gross | 8,249.7 | 722.8 | 7526.9 |
Mortgage covered bonds issued | 3,232.1 | 29.9 | 3202.2 |
Capital adequacy ratio | 17.1% | 47.8% |
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PKO Bank Hipoteczny is 100% owned by PKO Bank Polski, Poland’s largest bank, and specialises in zloty-denominated housing loans. PKO Bank Hipoteczny’s main purpose is to secure long-term financing by issuing covered bonds. In August 2014, PKO Bank Polski received approval from Poland’s Financial Supervision Authority to set up a mortgage bank, which began operating in April 2015.