Consolidated statement of financial position

The main items of the statement of financial position

The statement of financial position of the PKO Bank Polski SA Group is mainly influenced by the statement of financial position of the parent entity. It determines both the size of total assets and the structure of assets and liabilities.

The total assets of the PKO Bank Polski SA Group amounted to PLN 248.7 billion as at the end of 2014, which means an increase by 24.8% y/y. The growth was mainly determined by the acquisition of assets from the Nordea Group.

The structure of assets (in PLN million)





The structure of liabilities and equity (in PLN million)




The increase in total assets of the PKO Bank Polski SA Group was mainly due to an increase in the volume of loans and advances to customers by PLN 29 874.1 million y/y, of which 77.2% of the increase were acquired assets. The increase in total assets was financed mainly by an increase in amounts due to customers by PLN 22 482.6 million, of which 18.6% was achieved through the merger.

Main items of the statement of financial position of the PKO Bank Polski SA Group (in PLN million)

31.12.2014Structure
2014
31.12.2013Structure
2013
Change
2014/2013
Cash and balances with the central bank 11,738.4 4.7% 7,246.1 3.6% 62.0%
Amounts due from banks 2,486.7 1.0% 1,893.4 1.0% 31.3%
Loans and advances to customers 179,497.4 72.2% 149,623.3 75.1% 20.0%
Securities 40,160.2 16.1% 29,795.7 15.0% 34.8%
Other assets 14,818.0 6.0% 10,672.6 5.4% 38.8%
Total assets 248,700.6 100.0% 199,231.1 100.0% 24.8%
Amounts due to banks 19,398.9 7.8% 3,751.4 1.9% 5.2x
Amounts due to customers 174,386.8 70.1% 151,904.2 76.2% 14.8%
Debt securities in issue and subordinated liabilities 15,714.6 6.3% 12,167.3 6.1% 29.2%
Liabilities of insurance activities 2,679.7 1.1% 0.0 0.0% x
Other liabilities 8,905.0 3.6% 6,253.9 3.1% 42.4%
Total liabilities 221,085.0 88.9% 174,076.8 87.4% 27.0%
Total equity 27,615.6 11.1% 25,154.3 12.6% 9.8%
Total liabilities and equity 248,700.6 100.0% 199,231.1 100.0% 24.8%
Loans/Deposits (amounts due to customers) 102.9% x 98.5% x 4.4,pp.
Loans/stable sources of funding* 86.4% x 89.8% x -3.4,pp.
Interest bearing assets/Assets 89.3% x 91.0% x -1.7,pp.
Interest paying liabilities/Liabilities 84.2% x 84.2% x 0,pp.

*Stable sources of financing include amounts due to customers and external financing in the form of: issue of securities, subordinated liabilities and amounts due to financial institutions.

In 2014, the following efficiency ratios deteriorated: the return on assets (ROA) and the return on equity (ROE), by 0.2 pp. and 0.8 pp. respectively. The decrease was due to a dynamic of the net profit at the level of 0.8% y/y, combined with an increase in average assets by 15.1% y/y and an increase of average equity by 7.7% y/y.

Loans and advances to customers

In the structure of the net loan portfolio by type, the main items were loans and advances to the non-financial sector (93.5% of the portfolio as at the end of 2014) whose share increased by 0.2 pp. y/y. Housing loans, volume of which increased by +27.9% y/y were the main item of loans and advances to the non-financial sector (53.4% of the portfolio as at the end of 2014).

Loans and advances to customers of the PKO Bank Polski SA Group – structure by type (in PLN million)

31.12.2014Structure
2014
31.12.2013Structure
2013
Change
2014/2013
Loans and advances to the Bank’s customers net 179,497.4 100.0% 149,623.3 100.0% 20.0%
Financial sector (other than banks) 1,620.7 0.9% 2,981.2 2.0% -45.6%
Non-financial sector 167,792.0 93.5% 139,434.1 93.2% 20.3%
housing loans 95,798.0 53.4% 74,900.2 50.1% 27.9%
corporate loans 49,656.3 27.7% 44,508.3 29.7% 11.6%
consumer loans 20,321.7 11.3% 19,213.9 12.8% 5.8%
debt securities and receivables due from repurchase agreements 2,016.0 1.1% 811.8 0.5% 2.5x
Public sector 10,084.7 5.6% 7,207.9 4.8% 39.9%
corporate loans 7,265.0 4.0% 6,230.8 4.2% 16.6%
debt securities 2,819.7 1.6% 977.2 0.7% 2.9x

In term structure of loans and advances to customers dominate long-term loans (78.4% of the portfolio) which increased by 27.9% y/y compared to 2013 as a result of the growth of the housing loan portfolio.

Loans and advances to customers of the PKO Bank Polski SA Group – term structure (in PLN million)

31.12.2014Structure
2014
31.12.2013Structure
2013
Change
2014/2013
Loans and advances to the Bank’s customers (gross) 187,519.9 100.0% 156,274.0 100.0% 20.0%
Short-term 40,440.6 21.6% 41,294.3 26.4% -2.1%
Long-term 147,079.3 78.4% 114,979.7 73.6% 27.9%
Allowances - total (8,022.5) x (6,650.8) x 20.6%
Total 179,497.4 x 149,623.3 x 20.0%

Securities

As at the end of 2014, the securities portfolio of the PKO Bank Polski SA Group amounted to PLN 40.2 billion and recorded an increase by PLN 10.4 billion compared with the end of 2013. In the structure of the portfolio by type, the main items were debt securities issued by central banks and issued by the State Treasury.

Securities portfolio of the PKO Bank Polski SA Group (in PLN million)

31.12.2014Structure
2014
31.12.2013Structure
2013
Change
2014/2013
Financial instruments measured at fair value through profit and loss 15,723.1 39.2% 15,204.8 51.0% 3.4%
Investment securities available for sale 22,279.2 55.5% 14,073.1 47.2% 58.3%
Trading assets 1,924.4 4.8% 479.9 1.6% 4x
Securities held to maturity 233.4 0.6% 38.0 0.1% 6.1x
Total 40,160.2 x 29,795.7 x 34.8%

Amounts due to customers

In the structure of amounts due to customers by types, the main items are amounts due to retail clients (73.8% of the portfolio as at the end of 2014), the share of which decreased by 2.9 pp. y/y, along with an increase in share of amounts due to corporate entities by 2.4 pp. (y/y) (mainly in respect of current deposits).

Amounts due to customers of the PKO Bank Polski SA Group – structure by type (in PLN million)

31.12.2014Structure
2014
31.12.2013Structure
2013
Change
2014/2013
Amounts due to retail clients 128,675.6 73.8% 116,464.1 76.7% 10.5%
Amounts due to corporate entities 40,932.9 23.5% 31,966.6 21.0% 28.0%
Amounts due to public entities 4,778.3 2.7% 3,473.5 2.3% 37.6%
Total amounts due to customers 174,386.8 100.0% 151,904.2 100.0% 14.8%

In 2014, the term structure of amounts due to customers changed. The share of liabilities with maturity up to 1 month inclusive increased and represented 62.2% of all amounts due to customers as at 31 December 2014, at the same time, there was an increase in the share of liabilities with maturities of over 3 months and up to 5 years inclusive.

Amounts due to customers of the PKO Bank Polski SA Group – term structure (in PLN million)

31.12.2014Structure
2014
31.12.2013Structure
2013
Change
2014/2013
Up to 1 month inclusive 109,773.3 62.2% 94,883.2 61.6% 15.7%
Over 1 month up to 3 months inclusive 12,560.3 7.1% 16,098.6 10.5% -22.0%
Over 3 months up to 1 year inclusive 35,033.6 19.9% 26,107.0 16.9% 34.2%
Over 1 year up to 5 years inclusive 16,953.6 9.6% 14,389.8 9.3% 17.8%
Over 5 years 2,099.2 1.2% 2,550.7 1.7% -17.7%
Value adjustments and interest -2,033 x (2,125.0) x -4.3%
Total amounts due to customers 174,386.8 x 151,904.2 x 14.8%

External financing

The PKO Bank Polski SA Group is an active participant in the market of debt security issues, both local and international. These actions are intended to diversify the sources of financing of operations and to adapt them to regulatory requirements. As at the end of 2014 the main item in these sources of financing constituted loans received from monetary financial institutions, including above all credit line from Nordea Bank AB (publ), being a part of the transaction of acquisition of the Nordea Group’s assets by PKO Bank Polski SA (received for the purpose of financing the acquired portfolio of mortgage loans). 

Next significant category of long-term financing was debt securities in issue. The growth of these liabilities is the effect of bonds issued in the amount of EUR 500 million within the EMTN programme carried out in January 2014. 

Obtained funds were used for the diversification of sources of financing and securing further development of lending activity.

The increase in subordinated liabilities results from the acquisition of subordinated loan in CHF of Nordea Bank Polska SA.

Detailed information on the issues carried out by the PKO Bank Polski SA Group is described in note 35 of the Consolidated Financial Statements of the PKO Bank Polski SA Group for the year ended 31 December 2014.

External financing of the PKO Bank Polski SA Group (in PLN million)

31.12.2014Structure
2014
31.12.2013Structure
2013
Change
2014/2013
Debt securities in issue 13,300.6 36.2% 10,546.4 59.8% 26.1%
Subordinated liabilities 2,414.0 6.6% 1,620.9 9.2% 48.9%
Loans and advances received – monetary institutions* 17,643.6 48.0% 2,606.5 14.8% 6.8x
Loans and advances received – non-monetary institutions** 3,421.7 9.3% 2,863.7 16.2% 19.5%
Total 36,779.9 x 17,637.4 x 2.1x

* The item is recognised in ‘amounts due to banks’ in the statement of financial position of the PKO Bank Polski SA Group.
** The item is recognised in ‘amounts due to customers’ in the statement of financial position of the PKO Bank Polski SA Group.

Equity and capital adequacy ratio

Equity of the PKO Bank Polski SA Group increased by 9.8% per annum and accounted for 11.1% of total equity and liabilities as at the end of 2014. 

As at 31 December 2014 capital adequacy measures were calculated based on the CRR Regulation, including planned to be implemented national options known to the Group.

The capital adequacy ratio of the PKO Bank Polski SA Group amounted to 13.0% as at the end of 2014, thereby was 0.6 pp. lower than achieved as at the end of 2013.

Capital adequacy measured with the capital adequacy ratio remained at a safe level.

Equity and capital adequacy ratio of the PKO Bank Polski SA Group (in PLN million)

31.12.2014Structure
2014
31.12.2013Structure
2013
Change
2014/2013
Equity, of which: 27,615.6 100.0% 25,154.3 100.0% 9.8%
Share capital 1,250.0 4.5% 1,250.0 5.0% 0.0%
Reserve capital 18,802.4 68.1% 16,760.7 66.6% 12.2%
General banking risk fund 1,070.0 3.9% 1,070.0 4.3% 0.0%
Other reserves 3,474.1 12.6% 3,469.1 13.8% 0.1%
Financial assets available for sale 31.0 0.1% (57.8) -0.2% x
Share in other comprehensive income of an associate 1.0 0.0% (0.1) 0.0% x
Cash flow hedges 5.2 0.0% (125.6) -0.5% x
Actuarial gains and losses (9.0) 0.0% (7.7) 0.0% 16.9%
Currency translation differences from foreign operations (192.7) -0.7% (129.4) -0.5% 48.9%
Undistributed profits (60.7) -0.2% (306.2) -1.2% -80.2%
Net profit for the period 3,254.1 11.8% 3,229.8 12.8% 0.8%
Non-controlling interest (10.0) 0.0% 1.5 0.0% x
Own funds 24,743.2 x 21,305.1 x 16.1%16.1%
Capital adequacy ratio 12.96% x 13.58% x -0.62,pp.

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