Factors influencing results of the PKO Bank Polski SA Group

Actions undertaken by the PKO Bank Polski SA Group in 2013 allowed generating the net profit amounting to PLN 3 229.8 million.

In 2013 the low economic growth rate and historically low basic interest rates influenced financial results of banking sector in Poland. The net financial result of banking sector was lower than the year before, and its decline was primarily driven by lower result on banking activities, including net interest income. Lower net impairment allowance and maintaining the control of administrative expenses positively influenced the sector financial results in 2013. The operating efficiency of the banking sector measured by the C/I index slightly deteriorated. Banking market was still characterised by low lending activity and a relatively stable growth rate of deposits.

Actions undertaken by the PKO Bank Polski SA Group in 2013 allowed generating the net profit amounting to PLN 3 229.8 million. The profitability of the PKO Bank Polski SA Group shaped up on high level – as at the end of 2013, the ROE ratio amounted to 13.1%. An increase of amounts due to customers (+3.9% y/y) and the high level of equity of the PKO Bank Polski SA Group covered the increasing capital needs, arising from the growth of the loan activity, and enabled the further stable growth of business activities. As at the end of 2013, the capital adequacy ratio amounted to 13.58%, while its minimum level, determined by the Banking Law, amounted to 8%.