Consolidated statement of financial position

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 199.2 billion as at the end of 2013, which means an increase by 3.1% y/y. As a result, the PKO Bank Polski SA Group strengthened the position of the largest institution in the Polish banking sector.

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 4.3% y/y and the volume of securities by 18.4% y/y. The increase in total assets was financed mainly by an increase in amounts due to customers (+3.9% y/y).

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

 31.12.2013Structure
2013
31.12.2012 restatedStructure
2012
Change
2013/2012
Cash and balances with the Central Bank7,246.13.6%10,289.55.3%(29.6%)
Amounts due from banks1,893.41.0%3,392.51.8%(44.2%)
Loans and advances to customers149,623.375.1%143,483.174.3%4.3%
Securities29,795.715.0%25,159.413.0%18.4%
Other assets10,672.65.4%10,826.35.6%(1.4%)
Total assets199,231.1100.0%193,150.7100.0%3.1%
Amounts due to banks3,751.41.9%3,737.11.9%0.4%
Amounts due to customers151,904.276.2%146,193.675.7%3.9%
Debt securities in issue and subordinated liabilities12,167.36.1%11,902.06.2%2.2%
Other liabilities6,253.93.1%6,881.63.6%(9.1%)
Total liabilities174,076.887.4%168,714.387.3%3.2%
Total equity25,154.312.6%24,436.412.7%2.9%
Total liabilities and equity199,231.1100.0%193,150.7100.0%3.1%
Loans/Deposits (amounts due to customers)98.5%x98.1%x0.4 p.p.
Loans/Stable sources of funding*89.8%x89.3%x0.4 p.p.
Interest bearing assets/Assets91.0%x89.1%x1.9 p.p.
Interest paying liabilities/Liabilities84.2%x83.8%x0.4 p.p.

* 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 2013, the following efficiency ratios deteriorated: the return on assets (ROA) and the return on equity (ROE), by 0.4 pp. and 2.8 pp. respectively. The decrease was due to a negative dynamic of the net profit (-13.6% y/y) combined with an increase in average assets of 3.4% y/y and an increase of average equity by 5.0% 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 (93.3% of the portfolio as at the end of 2013) whose share dropped by 0.9 pp. y/y in favour of loans and advances to the financial sector which share increased by 1.5 pp. y/y. Housing loans (+6.4% y/y) were the main item of loans and advances to the non-financial sector (50.1% of the portfolio as at the end of 2013).

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

 31.12.2013Structure
2013
31.12.2012
restated
Structure
2012
Change
2013/2012
Loans and advances to the Bank’s
customers net
149,623.3100.0%143,483.1100.0%4.3%
Financial sector (without banks)2,981.22.0%720.90.5%4.1x
Non-financial sector139,539.893.3%135,097.594.2%3.3%
housing loans74,900.250.1%70,419.149.1%6.4%
corporate loans44,508.329.7%43,441.330.3%2.5%
consumer loans19,213.912.8%20,335.914.2%(5.5%)
debt securities and receivables due from
repurchase agreement
917.40.6%901.30.6%1.8%
Public sector7,102.34.7%7,664.65.3%(7.3%)
corporate loans6,125.14.1%6,492.04.5%(5.7%)
debt securities977.20.7%1,172.70.8%(16.7%)

In 2013, the term structure of the gross loan portfolio did not changed significantly compared to 2012, long-term deposits still comprise more than 73% of the portfolio.

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

 31.12.2013Structure
2013
31.12.2012 restatedStructure
2012
Change
2013/2012
Loans and advances to the Bank’s customers (gross)156,274.0100.0%150,259.3100.0%4.0%
Short-term41,294.326.4%39,611.426.4%4.2%
Long-term114,979.773.6%110,647.973.6%3.9%
Allowances - total(6,650.8)x(6,776.3)x(1.9%)
Total149,623.3x143,483.1x4.3%

Securities

As at the end of 2013, the securities portfolio of the PKO Bank Polski SA Group amounted to PLN 29.8 billion and recorded an increase of PLN 4.6 billion compared with the end of 2012. In the structure of the portfolio by type, the main items were debt securities issued by central banks, NBP money market bills and bills issued by the State Treasury.

The PKO Bank Polski SA Group’s securities portfolio (in PLN million)

 31.12.2013Structure
2013
31.12.2012Structure
2012
Change
2013/2012
Financial instruments designated at fair value through profit and loss15,204.851.0%12,629.750.2%20.4%
Investment securities available for sale14,073.147.2%12,205.148.5%15.3%
Trading assets479.91.6%277.61.1%72.9%
Securities held to maturity38.00.1%47.00.2%(19.1%)
Total29,795.7x25,159.4x18.4%

Amounts due to customers

In the structure of amounts due to customers by types, the main items are amounts due to retail clients (76.7% of the portfolio as at the end of 2013), the share of which increased by 0.8 pp. y/y mainly due to an increase in the share of current deposits of retail clients (+2.5 pp. y/y), along with a decrease in share of amounts due to corporate entities (y/y) by PLN 0.8 pp (mainly term deposit).

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

 31.12.2013Structure
2013
31.12.2012Structure
2012
Change
2013/2012
Amounts due to retail clients116,464.176.7%110,866.475.8%5.0%
Amounts due to corporate entities31,966.621.0%31,868.321.8%0.3%
Amounts due to State budget entities3,473.52.3%3,458.92.4%0.4%
Total amounts due to customers151,904.2100.0%146,193.6100.0%3.9%

In 2013, the term structure of amounts due to customers changed. The share of liabilities with maturity to 1 month inclusive and over 1 month to one year inclusive increased by 2.3 pp. y/y and represented 61.6% of all amounts due to customers as at 31.12.2013, which was the effect of an increase in funds accumulated on current and savings accounts. At the same time, there was a drop in the share of liabilities with maturity of over 3 months and up to 1 year inclusive, partially offset by an increase in the share of deposits with longer maturities (over 1 year up to 5 years inclusive).

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

 31.12.2013Structure
2013
31.12.2012Structure
2012
Change
2013/2012
Up to 1 month inclusive94,883.261.6%87,314.659.3%8.7%
Over 1 month up to 3 months inclusive16,098.610.5%16,314.411.1%(1.3%)
Over 3 months up to 1 year inclusive26,107.016.9%41,024.827.9%(36.4%)
Over 1 year up to 5 years inclusive14,389.89.3%1,121.10.8%12.8x
Over 5 years2,550.71.7%1,467.71.0%73.8%
Value adjustments and interest(2,125.0)x(1,049.0)x2x
Total amounts due to customers151,904.2x146,193.6x3.9%

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 future regulatory requirements. At the end of 2013 debt securities in issue and subordinated liabilities represented 6.1% of the liabilities and equity (+PLN 0.3 billion). The change in the level of liabilities in respect of the issue compared to 2012 was primarily a result of the increase in liabilities in respect of the securities issue on the domestic market performed by PKO Bank Polski SA and the PKO Leasing SA Group. At the same time, Bank’s liabilities due to loans and advances received from non-monetary financial institutions increased in 2013 – mainly the result of payment of the funds of credit facilities from Council of Europe Development Bank (‘CEB’) and from the European Investment Bank (‘EIB’).

Detailed information on the issues carried out by the PKO Bank Polski SA Group is described in Note 33 of the Consolidated Financial Statements of the PKO Bank Polski SA Group for the year 2013.

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

 31.12.2013Structure
2013
31.12.2012Structure
2012
Change
2013/2012
Debt securities in issue10,546.459.8%10,270.864.2%2.7%
Subordinated liabilities1,620.99.2%1,631.310.2%(0.6%)
Loans and advances received – monetary institutions*2,606.514.8%2,542.415.9%2.5%
Loans and advances received – non-monetary institutions**2,863.716.2%1,557.79.7%83.8%
Total17,637.4x16,002.1x10.2%

* The item ‘Loans and advances received – monetary institutions’ is recognised in ‘amounts due to banks’ in the statement of financial position of the PKO Bank Polski SA Group.

** The item ‘Loans and advances received – non-monetary institutions’ 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 increased by 2.9% p.a. and as at the end of 2013 accounted for 12.6% of total liabilities and equity of the PKO Bank Polski SA Group.

The capital adequacy ratio of the PKO Bank Polski SA Group amounted to 13.58% as at the end of 2013 and was at a higher level of 0.7 pp. compared with the end of 2012. Capital adequacy measured with the capital adequacy ratio remained at a safe level with the payment of dividend from net profit for 2012 of 61.12% and an increase of the loan portfolio.

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

 31.12.2013Structure
2013
31.12.2012 restatedStructure
2012
Change
2013/2012
Equity, of which:25,154.3100.0%24,436.4100.0%2.9%
Share capital1,250.05.0%1,250.05.1%0.0%
Reserve capital16,760.766.6%15,364.762.9%9.1%
General banking risk fund1,070.04.3%1,070.04.4%0.0%
POther reserves3,469.113.8%3,438.014.1%0.9%
Financial assets available for sale(57.8)-0.2%7.10.0%x
Share in other comprehensive income of an associate(0.1)0.0%1.30.0%x
Cash flow hedges(125.6)(0.5%)51.90.2%x
Actuarial gains and losses(7.7)0.0%52.00.2%x
Currency translation differences from foreign operations(129.4)(0.5%)(120.3)(0.5%)7.6%
Unappropriated profits(306.2)(1.2%)(416.6)(1.7%)(26.5%)
Net profit for the period3,229.812.8%3,738.615.3%(13.6%)
Non-controlling interest1.50.0%(0.3)0.0%x
Own funds21,305.1x20,177.8x5.6%
Capital adequacy ratio13.58%x12.89%x0.69 p.p.