PKO
Bank
Hipoteczny
Spółka
Akcyjna
with
the
registered
office
in
Warsaw,
ul.
Puławska
15,
02-515
Warsaw,
registered
in
the
Capital
City
of
Warsaw
District
Court
in
Warsaw,
13th
Commercial
Division
of
the
National
Court
Register
under
KRS
number
0000528469;
Tax Identification Number (NIP): 204-000-45-48; REGON: 222181030; share capital (paid up): PLN 1,611,300,000
Ladies and Gentlemen,
On
behalf
of
myself
and
the
entire
Management
Board
of
PKO
Bank
Hipoteczny
SA,
I
would
like
to
present
the annual report containing the financial results for the financial year ended 31 December 2023.
I
am
pleased
to
inform
you
that
2023
was
an
exceptional
year
for
us,
as
confirmed
by
our
results.
We
recorded the highest net profit in the history of the Bank’s operations of PLN 165.8 million.
Thanks
to
the
commitment
of
the
entire
team,
the
sales
of
mortgage
loans
increased
by
233%
compared
with
2022
and
reached
PLN 785
million.
PKO
Bank
Hipoteczny
SA
is
the
undisputed
leader
among
mortgage
banks
in
Poland
in
terms
of
total
assets,
the
balance
of
loans
and
the
total
amount
of
mortgage
covered
bonds
issued.
As
at
the
end
of
2023,
the
Bank’s
total
assets
exceeded
PLN 18.9 billion,
of
which
PLN
17.9 billion
represented
a
high
quality
portfolio
of
residential
mortgage
loans.
The
balance
of
outstanding
mortgage
covered
bonds
reached
PLN 10.4
billion,
which
accounts
for
more
than
56%
of
the
total outstanding mortgage covered bonds issued by mortgage banks operating in Poland.
2023
was
also
the
year
in
which
PKO
Bank
Hipoteczny
SA
started
pursuing
a
new
strategy
for
the
years
2023–2025.
In
the
new
strategy,
we
identified
five
challenging
strategic
goals
which
we
are
gradually
implementing.
The
Bank’s
activities
are
focused
on
creating
value
and
supporting
the
achievement
of
goals
by our stakeholders: investors, customers and PKO Bank Polski SA as our sole shareholder.
To
meet
the
needs
of
the
PKO
Bank
Polski
SA
Group,
we
raise
funds
by
issuing
mortgage
covered
bonds
and
we
use
these
funds
to
refinance
residential
loans.
In
2023,
we
conducted
three
issues
on
the
Polish
market
with
the
total
nominal
value
of
PLN 1,750
million.
Our
activities
continue
to
contribute
to
the
development of the mortgage covered bond market in Poland.
In
line
with
our
strategy,
we
maintain
a
safe
level
of
risk
in
the
Bank’s
operations.
Both
capital
and
liquidity
ratios
are
at
safe
levels,
significantly
above
the
regulatory
requirements.
This,
combined
with
a
high
level
of
collateralization
of
the
mortgage
covered
bonds
issued,
enabled
us
to
maintain
their
rating
at
the
level
of
Aa1, which is the highest possible rating for Polish securities.
In
2023,
as
part
of
our
strategy,
we
integrated
the
management
and
business
objectives
with
sustainable
development
goals.
We
are
creating
a
centre
of
excellence
in
the
area
of
ESG
and
we
are
educating
our
customers
by
regularly
publishing
articles
relating
to
the
real
estate
market
and
issues
specific
to
mortgage
loans,
including
the
advantages
of
buying
energy
efficient
real
estate.
Having
in
mind
environmental
issues,
we
introduced
to
our
offer
a
mortgage
loan
with
a
reduced
target
margin
for
customers
who
submit
an
energy
efficiency
certificate
which
meets
the
criteria
specified
by
the
Bank.
We
are
committed
to
building
the potential for issuing green mortgage covered bonds based on the Green Covered Bond Framework.
The
area
of
process
digitization
and
streamlining
is
a
very
important
element
of
our
strategy.
We
participate
in
a
project
aimed
at
making
the
lending
process
fully
digital,
and
we
regularly
implement
improvements
and
automate
tasks
executed
as
part
of
our
internal
processes.
This
includes,
among
other
things,
building
a state-of-the-art reporting platform.
We
cooperate
with
other
mortgage
banks
and
initiate
regulatory
changes
that
are
important
for
the
whole
sector.
We
are
currently
involved
in
drafting
a
uniform
template
of
a
residential
loan
agreement.
The
strategic
objective
of
the
project
is
to
develop
model
clauses
included
in
mortgage
loan
agreements
to
improve
their
clarity
and
reduce
the
risks
associated
with
mortgage
products.
We
also
participated
in
the
work
of
interdisciplinary
groups
preparing
proposals
for
legislative
changes
to
develop
the
mortgage
covered
bond
market
in
Poland
and
increase
the
long-term
funding
ratio.
Our
proposals
are
intended
to
improve
the
liquidity
of
the
mortgage
covered
bond
market
in
Poland
and
to
expand
the
group
of
investors
interested in such debt instruments.