Corporate segment

In 2013, PKO Bank Polski SA enhanced the image of a partner of Polish entrepreneurship by financing both the firms’ current operations (via working capital loans) and their future projects (via investment loans). The focus was mainly on building long-term relationships with the customers by supporting their current operations and offering a broad range of loans and other products.

At the same time, the Bank actively supported the implementation of investment and optimisation projects in the local government sector. In 2013, Szczecin joined the group of the local government authorities served by PKO Bank Polski SA. The Bank also won a tender for providing services to manage the budget of the Office of the Marshal for the Mazovian Voivodeship, which means the continuation of long-term cooperation.

The Bank analysed market expectations systematically and, in order to meet customer expectations, tailored its current product and service offer so as to cope with increasing competitive pressure. As a result, a broad range of transaction products and products mitigating financial risks (liquidity, settlement, interest rate, currency, and commodity price risks) were being developed consistently, and financing structure needs were addressed in a flexible manner.

As part of technological innovation, solutions were made available to corporate market customers for the automatic integration of their financial and accounting systems with the bank cash management system as regards sealed cash collection.

In 2013, the corporate sales network was reorganised and new working standards for consultants and specialists were implemented in order to improve customer service and to offer clients more satisfaction from cooperating with the Bank.

Lending activity and structured financing

In 2013, the volume of gross loans granted to corporate customers remained at a stable level of approx. PLN 39 billion, and the total amount of financing provided to corporate customers, including bonds issued, exceeded PLN 45 billion.

Financing of the corporate segment clients

The highest loan transactions concluded by the Bank in 2013 included financing in the form of investment and working capital loans granted to entities from the financial, fuel, chemical, and telecommunications sectors and public finance sector entities. The unit values of the highest transactions were between PLN 600 million to PLN 1 200 million. Moreover, the Bank granted significant loans (with unit values of more than PLN 200 million) to enterprises from the power, pharmaceutical and mining sectors and local government authorities.

Products associated with the financing of large investment projects such as loans or issues of non-Treasury securities are a standard element of PKO Bank Polski SA’s offer addressed to corporate customers. The Bank is the market leader in organizing municipal bond issues – as at the end of 2013, the Bank’s share in this market amounted to 28%¹. The Bank also had a strong position in respect of corporate bond issues – the Bank’s share was nearly 14%².

In 2013, PKO Bank Polski SA signed ten loan agreements in the form of a bank consortium totalling PLN 13.6 billion, of which the Bank’s share amounted to nearly PLN 3 billion, and two bilateral loan agreements totalling PLN 1.5 billion. Additionally, the Bank participated in granting a guarantee line in the form of a consortium where the value of the agreement amounted to EUR 96 million (the Bank’s share amounted to EUR 28 million) and concluded three agreements for granting a bank guarantee to an entity directly related to the Bank and operating in the banking sector, totalling PLN 2.41 million (these transactions were concluded on an arm’s length basis).

In the area of organizing issues, the Bank concluded 113 municipal bond issue agreements totalling PLN 0.8 billion and five corporate bond issue agreements, including two in the form of a bank consortium with a guarantee to close the issue, in the amount of PLN 1.9 billion (the Bank’s share amounted to PLN 0.26 billion) and three corporate bond issue agreements without the guarantee to close the issue, totalling PLN 1.6 billion.

Deposit activities and transaction banking

As at the end of 2013, the volume of deposits in the corporate segment amounted to PLN 21.3 billion and was PLN 2.6 billion lower than in the previous year. This was the result of the Bank’s consistent liquidity policy regarding negotiated term deposits and obtaining long-term financing from the wholesale market. At the same time, by expanding its offer of transaction products the Bank systematically increased its current deposit base.

Deposits of the corporate segment clients

PKO Bank Polski SA continues to improve the quality of the services provided in respect of transaction banking. In 2013, the Bank introduced new services addressed to entities with a complex organisational structure (e.g. groups of companies), enabling its customers to use various kinds of products and services which make it easier to settle transactions with foreign partners. In implementing a number of system improvements, the Bank launched the first payment machines with the possibility of making payments using payment cards, which is unique on the market. PKO Bank Polski SA as the first bank on the market, have given its customers the possibility of integrating the financial and accounting system with the bank cash management system (PKO Cash), which makes it much easier to transfer cash to the Bank and offers quick access to the funds. This is a modern solution for cash deposits, intended especially for large retail networks which, due to the nature of their operations, transfer large amounts of cash on a regular basis. In 2013, while implementing new solutions for the provision of mass disbursement services, the Bank enabled its corporate customers to make such disbursements in its agencies.

At the same time, the leading product of the corporate banking segment of PKO Bank Polski SA is the electronic banking system – iPKO Biznes. In 2013, the iPKO Biznes application was expanded to include new functionalities which make it more convenient to use, including, amongst others, the expansion of the possibilities to service the order authorisation process. At present, the iPKO Biznes application allows customers to monitor and manage accounts, payment cards and loans, and to place orders for all types of transfers.

[1]Based on a report by Rating&Rynek Fich Polska organisers of municipal bond issues (with maturities over 365 days).
[2]Based on a report by Rating&Rynek Fich Polska organisers of municipal bond issues (with maturities over 365 days).