PKO Bank Hipoteczny Spółka Akcyjna z siedzibą w Warszawie przy ul. Puławskiej 15, 02-515 Warszawa, zarejestrowana w Sądzie Rejonowym dla miasta stołecznego Warszawy w Warszawie, XIII Wydział Gospodarczy Krajowego Rejestru Sądowego pod nr KRS 0000528469; NIP: 204-000-45-48; REGON: 222181030; kapitał zakładowy (kapitał wpłacony) 1 611 300 000 PLN
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 S.A., I would like to present the annual report containing the financial results for 2022.
I am pleased to confirm that the Bank’s position is stable and the quality of its assets remains very high. Both capital and liquidity ratios are at safe levels, significantly above the regulatory requirements. With a low cost of risk (0.03% as at 31 December 2022) and a high level of security of mortgage covered bonds issued, we are trusted by investors. The safety of our mortgage covered bonds is confirmed by the Aa1 rating granted by Moody’s Investors Service Ltd. This is the highest possible rating for Polish mortgage covered bond programmes.
As at 31 December 2022 the Bank’s total assets amounted to PLN 20.7 billion, of which nearly 90 percent comprised the highest quality residential loan portfolio. In turn, the total value of the Bank’s outstanding mortgage covered bonds was PLN 12.1 billion at the end of December, giving the Bank the leading position on the Polish market (57.3 percent of all mortgage covered bonds on the market).
In 2022, PKO Bank Hipoteczny S.A. issued series 8 green mortgage covered bonds in EUR with a nominal value of EUR 500 million. This was the first such issue in the CEE region. It makes us a part of a global trend and confirms the importance of sustainable development in the Bank’s operations.
The year 2022 brought many challenges. As a bank, we had to continuously adapt to dynamic market conditions and the changing regulatory environment.
We closed the first six months of the year with a net profit of PLN 50.8 million. At the same time, due to the entry into force of a law supporting borrowers, i.e. the so-called “loan repayment holidays”, we adjusted the gross carrying amount of mortgage loans by PLN 667.8 million by reducing interest income, as a result of which we recognized a loss for the year. The loss incurred is a result of events which are beyond the Bank’s control and does not affect our growth opportunities.
In 2022, we continued our close cooperation with the PKO Bank Polski Group. We implemented solutions supporting our customers, which focused, for example, on the development of remote processes. The Bank provided borrowers with a new functionality allowing them to complete a mortgage loan application through iPKO and offered the possibility of placing selected orders as part of the post-sales support through the platform.
In 2022, the “loan repayment holidays” had the biggest impact on the sector. In 2023, the WIBOR benchmark reform and demanding macroeconomic conditions will pose an additional challenge. Regardless of external factors, we are well prepared to meet the objectives of the new strategy for the years 2023– 2025 and our sources of financing are stable and diversified.
I wish to thank the employees of PKO Bank Hipoteczny for their involvement and professionalism, the representatives of PKO Bank Polski for their helpful cooperation, and the investors for their trust. I invite you to read the annual report. I hope that it will be a source of valuable information on our Bank’s operations.
Yours faithfully
Katarzyna Kurkowska-Szczechowicz