This document is not an official version of Report on the activities of Bank Pekao S.A. Group for the year 2024. In case of any doubt or discrepancy, the official version of Report on the activities of Bank Pekao S.A. Group for the year 2024 prepared in accordance with the requirements of the ESEF and available on the Bank's website shall prevail.
This document is a free translation of the Polish original. Terminology current in Anglo-Saxon countries has been used where practicable for the purposes of this translation in order to aid understanding. The binding Polish original should be referred to in matters of interpretation.
Report on the activities of Bank Pekao S.A. Group for the year 2 0 2 4 (prepared jointly with the Report on the activities of Bank Pekao S.A.)
Warsaw, February 2025
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
1. Highlights of Bank Pekao S.A. Group .................................................................................................................................................................... 5
2. Highlights of Bank Pekao S.A. ............................................................................................................................................................................... 6
3. Summary of Performance ....................................................................................................................................................................................... 7
4. External Activity Conditions ................................................................................................................................................................................. 10
5. Important Events and Achievements ................................................................................................................................................................... 15
5.1 Changes in the Group’s structure ........................................................................................................................................................................ 15
5.2 Changes in the Statutory Bodies of the Bank ...................................................................................................................................................... 15
5.3 Organizational changes ....................................................................................................................................................................................... 16
5.4 Awards and distinctions ....................................................................................................................................................................................... 17
6. Information for the Investors ................................................................................................................................................................................ 21
6.1 The Bank’s share capital and share ownership structure .................................................................................................................................... 21
6.2 Performance of market valuation of Bank Pekao S.A.’s stock ............................................................................................................................. 22
6.3 Dividend payment history .................................................................................................................................................................................... 23
6.4 Investor Relations ................................................................................................................................................................................................ 23
6.5 Financial credibility ratings ................................................................................................................................................................................... 24
6.6 Disclosure to the extent specified by the Principle Adverse Impacts under the SFDR Regulation for Pekao Group as an investee .................. 26
7. Activity of Bank Pekao S.A. Group ...................................................................................................................................................................... 30
7.1 Important factors influencing the Group’s activities and results ........................................................................................................................... 30
7.2 Major sources of risk and threats ......................................................................................................................................................................... 31
7.3 Capital adequacy ................................................................................................................................................................................................. 34
7.4 Bank Pekao S.A. on the Polish banking market .................................................................................................................................................. 36
7.4.1 Retail banking and private banking ................................................................................................................................................... 37
7.4.2 Enterprise banking ............................................................................................................................................................................ 43
7.4.3 Corporate and investment banking ................................................................................................................................................... 45
7.5 Major areas of activities of the Group’s subsidiaries ........................................................................................................................................... 49
7.5.1 Banking activity ................................................................................................................................................................................. 49
7.5.2 Assets management ......................................................................................................................................................................... 49
7.5.3 Leasing activity ................................................................................................................................................................................. 49
7.5.4 Factoring activity ............................................................................................................................................................................... 50
7.5.5 Transactional advisory ...................................................................................................................................................................... 50
7.5.6 Other financial services ..................................................................................................................................................................... 50
7.6 Investing in human capital ................................................................................................................................................................................... 51
7.7 Sponsorship and charity policy ............................................................................................................................................................................ 57
8. Statement of Financial Position and Financial Results ..................................................................................................................................... 59
8.1 The consolidated income statement – presentation form .................................................................................................................................... 59
8.2 Structure of the consolidated statement of financial position – short form .......................................................................................................... 63
8.2.1 Assets ............................................................................................................................................................................................... 64
8.2.2 Liabilities ........................................................................................................................................................................................... 65
9. Separate Statement of Financial Position and Financial Results ..................................................................................................................... 68
9.1 The Separate income statement – presentation form .......................................................................................................................................... 68
9.2 Structure of the separate statement of financial position – short form ................................................................................................................. 71
9.2.1 Assets ............................................................................................................................................................................................... 71
9.2.2 Liabilities ........................................................................................................................................................................................... 73
9.3 The structure of the net profit ............................................................................................................................................................................... 75
9.4 Off–balance sheet items ...................................................................................................................................................................................... 76
10. Other Information .................................................................................................................................................................................................. 77
11. Prospects for Development .................................................................................................................................................................................. 84
11.1 Factors which will affect the results of the Group ................................................................................................................................................ 84
11.2 Strategic directions and business priorities ......................................................................................................................................................... 85
12. Statement of Bank Polska Kasa Opieki Spółka Akcyjna on compliance with corporate governance principles in 2024 ........................... 91
13. Statement on sustainability of the Bank Polska Kasa Opieki Spółka Akcyjna .............................................................................................. 125
13.1 General Information ........................................................................................................................................................................................... 125
13.1.1 Principles for Preparing the Sustainability Statement [BP-1] [BP-2] ............................................................................................... 125
13.1.2 Corporate Governance ................................................................................................................................................................... 126
13.1.2.1 Role of Administrative, Management, and Supervisory Bodies [GOV-1] ....................................................................................... 126
13.1.2.2 Information Provided to Administrative, Management, and Supervisory Bodies and Their Engagement in Sustainability Matters [GOV-2] .......................................................................................................................................................................................... 128
13.1.2.3 Incorporating Sustainability Performance into Incentive Systems [GOV-3] ................................................................................... 131
13.1.2.4 Due Diligence Statement [GOV-4] ................................................................................................................................................. 131
13.1.2.5 Risk Management and Internal Controls in Sustainability Reporting [GOV-5] ............................................................................... 132
13.1.3 Strategy ........................................................................................................................................................................................... 132
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Bank Pekao S.A.
13.1.3.1 Strategy, Business Model, and Value Chain [SBM-1] .................................................................................................................... 132
13.1.3.2 Stakeholder Interests and Opinions [SBM-2] ................................................................................................................................. 134
13.1.3.3 Material Impacts, Risks, and Opportunities and Their Interrelation with Strategy and Business Model [SBM-3] ......................... 136
13.1.3.4 Management of Impacts, Risks, and Opportunities ........................................................................................................................ 147
13.1.3.4.1 Description of the Process for Identifying and Assessing Material Impacts, Risks, and Opportunities [IRO-1] ............................. 147
13.1.3.5 Disclosure Requirements under ESRS Covered by the Entity’s Sustainability Statement [IRO-2] ................................................ 149
13.2 Environmental Information ................................................................................................................................................................................. 157
13.2.1 Climate Change [ESRS E1] ............................................................................................................................................................ 157
13.2.1.1 Transition Plan for Climate Change Mitigation [E1-1] .................................................................................................................... 157
13.2.1.2 Management of Impacts, Risks, and Opportunities ........................................................................................................................ 158
13.2.1.2.1 Policies Related to Climate Change Mitigation and Adaptation [E1-2] ........................................................................................... 158
13.2.1.2.2 Actions and Resources Related to Climate Policy [E1-3] ............................................................................................................... 161
13.2.1.3 Metrics and Targets ........................................................................................................................................................................ 164
13.2.1.3.1 Climate Change Mitigation and Adaptation Targets [E1-4] ............................................................................................................ 164
13.2.1.3.2 Monitoring the Results of Actions Derived from the Climate Policy ............................................................................................... 164
13.2.1.4 Gross Greenhouse Gas Emissions for Scopes 1, 2, and 3 and Total Greenhouse Gas Emissions [E1-6] ................................... 166
13.2.1.5 Greenhouse Gas Removal Projects and Greenhouse Gas Emission Reduction Projects Financed through Carbon Emission Units [E1-7] .............................................................................................................................................................................................. 170
13.2.1.6 Establishment of internal carbon emission pricing [E1-8] ............................................................................................................... 170
13.2.1.7 Expected Financial Impacts of Significant Physical and Transition Risks and Potential Climate-Related Opportunities [E1-9] .... 170
13.2.2 EU Taxonomy ................................................................................................................................................................................. 171
13.3 Social Aspects ................................................................................................................................................................................................... 261
13.3.1 Own Workforce [ESRS S1] ............................................................................................................................................................. 261
13.3.1.1 Management of Impacts, Risks, and Opportunities ........................................................................................................................ 261
13.3.1.1.1 Policies Related to Own Workforce [S1-1] ..................................................................................................................................... 261
13.3.1.1.2 Procedures for Cooperation with Employees and Employee Representatives on Impact Issue [S1-2] ......................................... 268
13.3.1.1.3 Processes for Addressing Negative Impacts and Employee Reporting Channels [S1-3] .............................................................. 269
13.3.1.1.4 Managing Material Impacts on Employees, Addressing Key Risks, and Leveraging Opportunities [S1-4] .................................... 269
13.3.1.2 Metrics and Targets ........................................................................................................................................................................ 272
13.3.1.2.1 Goals for Managing Material Negative Impacts, Increasing Positive Impacts, and Managing Material Risks and Opportunities [S1- 5] .................................................................................................................................................................................................... 272
13.3.1.2.2 Characteristics o the Entity’s Employees [S1-6] ............................................................................................................................. 272
13.3.1.2.3 Characteristics of Non-Employee Workers Classified as the Entity’s Own Workforce [S1-7] ........................................................ 273
13.3.1.2.4 Scope of Collective Bargaining and Social Dialogue [S1-8] ........................................................................................................... 273
13.3.1.2.5 Diversity Metrics [S1-9] .................................................................................................................................................................. 274
13.3.1.2.6 Adequate Pay [S1-10] .................................................................................................................................................................... 274
13.3.1.2.7 Social Protection [S1-11] ................................................................................................................................................................ 274
13.3.1.2.8 Training and Skills Development Metrics [S1-13] ........................................................................................................................... 274
13.3.1.2.9 Occupational Health and Safety Metrics [S1-14] ............................................................................................................................ 275
13.3.1.2.10 Work-Life Balance Metrics [S1-15] ................................................................................................................................................. 275
13.3.1.2.11 Remuneration Metrics (Pay Gap and Total Remuneration) [S1-16] ............................................................................................... 275
13.3.1.2.12 Incidents, Complaints, And Material Impacts On Human Rights Compliance [S1-17] ................................................................... 276
13.3.2 Consumers and End-Users [ESRS S4] .......................................................................................................................................... 277
13.3.2.1 Management of Impacts, Risks, and Opportunities ........................................................................................................................ 277
13.3.2.1.1 Policies Related to Consumers and End-Users [S4-1] ................................................................................................................... 277
13.3.2.1.2 Processes for Engagement with Consumers and End-Users Regarding Impacts [S4-2] .............................................................. 282
13.3.2.1.3 Processes for Addressing Negative Impacts and Consumer and End-User Complaint Channels [S4 -3] .................................... 285
13.3.2.1.4 Actions Taken Regarding Material Impacts on Consumers and End-Users and Approaches to Managing Material Risks and Leveraging Material Opportunities Related to Consumers and End-Users, as well as the Effectiveness of Such Actions [S4-4] . 286
13.3.2.2 Metrics and Targets ........................................................................................................................................................................ 287
13.3.2.2.1 Goals for Managing Material Negative Impacts, Increasing Positive Impacts, and Managing Material Risks and Opportunities [S4- 5] .................................................................................................................................................................................................... 287
13.4 Corporate Governance Information ................................................................................................................................................................... 289
13.4.1 Business Conduct [ESRS G1] ........................................................................................................................................................ 289
13.4.1.1 Corporate Governance ................................................................................................................................................................... 289
13.4.1.1.1 Role of Administrative, Supervisory, and Management Bodies [ESRS 2 – GOV-1] ...................................................................... 289
13.4.1.2 Management of Impacts, Risks, and Opportunities ........................................................................................................................ 289
13.4.1.2.1 Business Conduct Policies and Corporate Culture [G1-1] ............................................................................................................. 289
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Bank Pekao S.A.
13.4.1.2.2 Supplier Relationship Management [G1-2] .................................................................................................................................... 292
13.4.1.2.3 Preventing and Detecting Corruption and Bribery [G1-3] ............................................................................................................... 294
13.4.1.3 Metrics and Targets ........................................................................................................................................................................ 296
13.4.1.3.1 Corruption or Bribery Incidents [G1-4] ............................................................................................................................................ 296
13.4.1.3.2 Payment Practices [G1-6] .............................................................................................................................................................. 297
13.4.1.3.3 Tax Transparency .......................................................................................................................................................................... 297
13.4.1.3.4 Cybersecurity (and data security) ................................................................................................................................................... 298
13.5 Contact Information ........................................................................................................................................................................................... 298
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Bank Pekao S.A.
1. Highlights of Bank Pekao S.A. Group
2024
2023
RESTATED
2022
2021
2020
2019
INCOME STATEMENT – SELECTED ITEMS
(in PLN million)
Operating income
16,049
15,200
10,664
8,522
7,796
8,282
Operating costs
(5,244)
(4,631)
(3,987)
(3,739)
(3,451)
(3,537)
Profit before income tax
8,123
8,565
2,882
3,002
1,725
3,002
Net profit attributable to equity holders of the Bank
6,376
6,659
1,717
2,175
1,102
2,165
PROFITABILITY RATIOS
Return on average equity (ROE) – nominally
21.2%
25.0%
7.6%
8.7%
4.5%
9.5%
Return on assets (ROA)
2.0%
2.2%
0.6%
0.9%
0.5%
1.1%
Net interest margin
4.2%
4.2%
3.3%
2.4%
2.5%
2.9%
Cost / income (including to contributions to the BFG cost and fee paid for the Protection Schemes )
34.2%
31.7%
44.4%
47.3%
49.2%
48.2%
Costs of risk
0.48%
0.36%
1.12%
0.45%
0.99%
0.46%
STATEMENT OF FINANCIAL POSITION – SELECTED ITEMS
(in PLN million)
Total assets
334,242
305,789
281,139
250,567
233,217
203,323
Customers’ financing (*)
182,158
171,140
167,509
169,073
151,684
151,384
Amounts due to customers (**)
259,034
232,078
209,596
194,804
177,745
157,203
Debt securities issued and subordinated liabilities
18,949
12,739
13,126
8,117
8,905
9,072
Equity
31,914
30,428
22,774
23,863
25,495
23,398
STATEMENT OF FINANCIAL POSITION STRUCTURE RATIOS
Customers’ financing (*) / total assets
54.5%
56.0%
59.6%
67.5%
65.0%
74.5%
Securities / total assets
35.8%
32.7%
25.3%
22.9%
26.7%
17.8%
Deposits (***) / total assets
83.2%
80.1%
79.2%
81.0%
80.0%
81.8%
Customers’ financing (*) / deposits (***)
65.5%
69.9%
75.2%
83.3%
81.3%
91.0%
Equity / total assets
9.5%
10.0%
8.1%
9.5%
10.9%
11.5%
Total capital ratio (****)
16.1%
17.5%
17.8%
17.7%
19.2%
17.1%
EMPLOYEES AND NETWORK
Total number of employees
15,212
14,922
14,443
14,429
14,984
15,702
Number of outlets
573
574
597
650
713
805
Number of ATMs
1,314
1,306
1,328
1,475
1,592
1,648
(*) Including net investments in financial leases to customers, non-treasury debt securities and excluding reverse repo transactions.
(**) Excluding repo transactions and lease liabilities.
(***) Deposits include amounts due to customers, debt securities issued and subordinated liabilities.
(****) Data for 31 December, 2023 have been recalculated taking into account the retrospective recognition of part of the profit for 2023, in accordance with the EBA position expressed in Q&A 2018_3822 and Q&A 2018_4085.
(*****) From December 2024, a new a new method of reporting data on the number of employees has been adopted. The new methodology includes all people employed under an employment contract (active and inactive), excluding people employed for 0.1 full-time positions or less (so-called technical positions). In order to ensure comparability, data for the years 2023-2019 have also been changed.
Note: Due to changes in accounting principles made in 2024 described in Note No. 4 to the Consolidated Financial Statements of Bank Pekao S.A. Group for the year ended on 31 December 2024 and in order to ensure comparability, the data for 2023 have been corrected compared to those previously published.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
2. Highlights of Bank Pekao S.A.
2024
2023
RESTATED
2022
2021
2020
2019
INCOME STATEMENT – SELECTED ITEMS
(in PLN million)
Operating income
15,290
14,657
10,320
8,084
7,454
7,887
Operating costs
(4,794)
(4,230)
(3,658)
(3,438)
(3,169)
(3,204)
Profit before income tax
8,105
8,643
3,012
2,995
1,697
3,016
Net profit
6,425
6,799
1,898
2,237
1,126
2,247
PROFITABILITY RATIOS
Return on average equity (ROE) - nominally
21.7%
26.0%
8.7%
9.2%
4.8%
10.2%
Return on assets (ROA)
2.1%
2.4%
0.73%
0.9%
0.5%
1.2%
Net interest margin
4.2%
4.3%
3.3%
2.4%
2.5%
2.9%
Cost / income (including to contributions to the BFG cost and fee paid for the Protection Schemes )
32.9%
30.1%
42.7%
46.1%
47.6%
46.4%
Costs of risk
0.38%
0.32%
1.12%
0.41%
1.03%
0.43%
STATEMENT OF FINANCIAL POSITION – SELECTED ITEMS
(in PLN million )
Total assets
319,251
294,552
271,703
241,275
222,381
194,650
Customers’ financing (*)
165,435
157,406
155,477
157,783
139,926
142,146
Amounts due to customers (**)
259,523
232,307
209,803
195,064
178,276
157,750
Debt securities issued and subordinated liabilities
9,324
6,859
8,683
2,940
3,281
4,369
Equity
31,516
29,987
22,189
23,100
24,647
22,527
STATEMENT OF FINANCIAL POSITION STRUCTURE RATIOS
Customers’ financing (*) / total assets
51.8%
53.4%
57.2%
65.4%
62.9%
73.0%
Securities / total assets
37.9%
34.5%
26.8%
24.2%
28.2%
18.6%
Deposits (**) / total assets
84.2%
81.2%
80.4%
82.1%
81.6%
83.3%
Customers’ financing (*) / deposits (**)
61.5%
65.8%
71.2%
79.7%
77.1%
87.7%
Equity / total assets
9.9%
10.2%
8.2%
9.6%
11.1%
11.6%
Total capital ratio (****)
18.7%
20.1%
19.9%
19.6%
21.3%
18.7%
EMPLOYEES AND NETWORK
Total number of employees
12,626
12,470
12,234
12,400
12,866
13,808
Number of outlets
573
574
597
650
713
805
Number of ATMs
1,314
1,306
1,328
1,475
1,592
1,648
(*) Including non-treasury debt securities and excluding reverse repo transactions.
(**) Excluding repo transactions and lease liabilities.
(***) Deposits include amounts due to customers, debt securities issued and subordinated liabilities.
(****) Data for 31 December, 2023 have been recalculated taking into account the retrospective recognition of part of the profit for 2023, in accordance with the EBA position expressed in Q&A 2018_3822 and Q&A 2018_4085.
(*****) From December 2024, a new a new method of reporting data on the number of employees has been adopted. The new methodology includes all people employed under an employment contract (active and inactive), excluding people employed for 0.1 full-time positions or less (so-called technical positions). In order to ensure comparability, data for the years 2023-2019 have also been changed.
Note: Due to changes in accounting principles made in 2024 described in Note No. 4 to the Separate Financial Statements of Bank Pekao S.A. for the year ended on 31 December 2024 and in order to ensure comparability, the data for 2023 have been corrected compared to those previously published.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
3. Summary of Performance
Main P&L items
In 2024, we generated net profit of Bank Pekao S.A. Group attributable to the Bank's shareholders in the amount of PLN 6.376 million. This result was nominally lower by PLN 283 million than the result achieved in 2023, mainly due to higher costs of legal risk of foreign currency mortgage loans, higher operating costs and the recognition of costs related to the modification of PLN mortgage loan agreements granted to consumers due to their suspension of loan repayments (credit holidays).
Net profit excluding the cost of credit holidays and the costs of legal risk of foreign currency mortgage loans amounted to PLN 7,169 million and was 4.0% higher y/y.
The ROE ratio was at the level of 21.2%.
The Group's operating income in 2024 amounted to PLN 16,049 million and was 5.6% higher than the income achieved in the 2023, mainly due to net interest income, despite the recognition of credit holiday costs.
- Net interest income achieved in 2024 amounted to PLN 12,729 million and was higher by PLN 836 million, i.e. 7.0% compared to the result achieved in 2023, mainly due to higher volumes and a stable interest margin, despite the recognition of credit holiday costs in the amount of PLN 153 million.
- The net fee and commission income achieved in 2024 amounted to PLN 2,854 million and was higher by PLN 68 million, i.e. 2.4% compared to the result achieved in 2023, mainly due to higher commissions from investment funds (the effect of better gross sales and assets under management increased by 32.9% y/y).
- The trading result achieved in the 2024, amounted to PLN 444 million and was lower by PLN 63 million compared to the result achieved in the 2023 due to the lower valuation of derivative instruments.
Operating costs in the 2024 amounted to PLN 5,244 million and were higher by PLN 613 million, i.e. 13.2% compared to the 2023, mainly due to inflation indexation of salaries, the variable part of personnel costs related to the result and costs related to the voluntary redundancy program.
The Net allowances for expected credit losses in the amounted to PLN 883 million and was higher by PLN 257 million, i.e. 41.1% than in 2023. The Group's cost of risk in 2024 amounted to 0.48%, up 0.12 p.p. from the previous year, and are in line with the strategic assumptions and the adopted risk appetite.
Contributions to the Bank Guarantee Fund in 2024 amounted to PLN 239 million and were higher by PLN 49 million i.e. 25.8% than in 2023, due to the increase in the volume of guaranteed funds.
The tax on certain financial institutions in 2024 amounted to PLN 898 million and was higher by PLN 19 million, i.e. 2.2% than in 2023 due to the increase in the Bank's assets.
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Bank Pekao S.A.
Volumes
As at the end of December 2024 , loans and advances at nominal value amounted to PLN 186,507 million and were higher by PLN 10,157 million, i.e. 5.8% than at the end of December 2023 . As at the end of December 2024 the volume of retail l oans amounted to PLN 83,768 million and were higher by PLN 5,393 million, i.e. 6.9% than at the end of December 2023 . Corporate loans including non-treasury debt securities at the end of December 2024 amounted to PLN 102,739 million and were higher by PLN 4.764 million, i.e. 4.9% compared to the end of December 2023 .
As at the end of December 2024 amounts due to the Group’s Customers and Debt securities issued amounted to PLN 277,983 million and were higher by PLN 33,166 million, i.e. 13.5% than at the end of December 2023.
The value of net assets of investment funds managed by Pekao TFI S.A. amounted to PLN 32,189 million and was higher by PLN 7,961 million, i.e. 32.9% compared to the end of December 2023.
In 2024, we increased commercial activity, actively supported clients in maintaining financial liquidity, continued to digitize and automate processes, and implemented advanced digital solutions.
In 2024, we opened 572 thousand accounts for individual clients, maintaining high sales results compared to 2023. We also achieved good acquisition results among young clients up to 26 years of age, opening 190 thousand accounts for young people, which constitutes 33% of total accounts.
In 2024, the number of active mobile banking clients increased by 295 thousand to 3.4 million, exceeding the target assumed in the strategy at the end of 2024 (3.2 million). It was +9% higher than a year ago and +24% higher than two years ago.
We offered a rich deposit offer to individual clients, including: interest rate of 7.0% per annum on savings accounts, deposit with a fund of 6.5% per annum for a period of 6 months.
In 2024, we offered individual, business and SME customers who were affected by the flood or its direct consequences the “SOS Pakiet Pomocowy”, which allowed for the suspension of installment repayments for up to 3 months or the extension of the extension date.
Individual customers who have a housing loan and were affected by the flood or its direct consequences could take advantage of the statutory non-refundable financial support paid in installments under the Borrower Support Fund.
The Bank transferred PLN 1 million to the Great Orchestra of Christmas Charity Foundation, which acted as the national coordinator of aid activities for flood victims.
The Bank also supported employees who live or work in areas affected by the flood. We offered them assistance adequate to their needs, including psychological, financial and logistical support.
The Bank's employees also got involved in helping communities affected by the effects of the natural disaster in southern Poland by organizing many volunteering events.
We have extended a special offer for individual and corporate customers from Ukraine.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
We focused our activities in the following key strategic areas (in accordance with the adopted Strategy for 2021-2024).
Strategy and key financial indicators
„Responsible Bank. Modern banking ” is th strategy for the years 2021-2024, announced in March 2021.
According to the strategic plan:
• we are a universal bank, we want to be the bank of first choice for our clients,
• we develop a remote distribution and customer service model,
• we focus on cost and process efficiency,
• we are growing in the most profitable market segments.
Our ambition is a strong position among the most profitable and effective banks in Poland, including increasing the return on equity (ROE), reducing the cost-to-income ratio and increasing the number of active mobile banking customers.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
4. External Activity Conditions
Economic growth
The year 2024 was a period of economic recovery following stagnation the year before. According to Statistics Poland’s preliminary estimate, GDP growth amounted to 2.9% yoy. However, the pace of this recovery was historically slow and disappointing compared to forecasts. Despite a rapid increase in real household incomes, reaching 7% annually, private consumption grew relatively slowly (ca. 3% yoy). Investment growth came out at ca. 1% yoydue to the EU funding cycle.
In 2025, the Polish economy will gain slightly more momentum, with GDP growth at 4.0%. In our opinion, this will be a consequence of several factors. First, we will see a recovery in investment due to higher public sector spending and simultaneous stabilization of private investment. Second, the negative contribution of net exports will remain so, but on a significantly smaller scale due to the recovery of domestic demand in Poland's main trading partners. Third, the recovery in domestic consumption will slow down a bit.
Labour market
The unemployment rate amounted to 5.1% at the end of 2024, compared to 5.1% at the end of 2023. The stagnation of this indicator is a good illustration of the Polish labor market condition in 2024, which showed not only stagnant but also slightly recessionary trends. This was a direct result of the weakening consumer demand from a year ago, low foreign demand, but also rising employment costs. Despite the unfavorable environment, the unemployment rate in 2024 reached its historical minimum twice (4.9%). The lack of its significant increases is the result of the continuing tightness in the labor market and employers anticipating the upcoming economic recovery. As a result, average employment in the enterprise sector in terms of the number of full-time positions fell by 50 thousand, compared to a decrease in the number of employees by only 20 thousand – the discrepancy was due to avoiding layoffs and cutting hours instead.
The wage growth in the corporate sector began to slow down in 2024, but was still clearly above the levels observed before the inflation shock. On average, wages increased by 11.3% per year, compared to 11.9% in 2023. The growth was driven by the falling, although remaining above the NBP inflation target CPI inflation, and strong wage demands of employees. On the other hand, the worse condition of enterprises and lower labor demand began to translate into a lower, but still double-digit wage growth, especially in the second half of the year. The real wages growth reached its local peak in 2024 and amounted to 7.7% yoy.
In the first quarter of 2025, the unemployment rate will increase due to seasonal factors, but will start to fall again at the turn of the first two quarters, to reach its historical minimum in the second half of the year. At the end of 2024, the unemployment rate should fall to 4.8% from 5.1% a year earlier. In turn, wage growth will follow a downward trend, to eventually decrease by about 1 percentage point compared to the previous year. With inflation growing especially at the beginning of the year, real wages will slow down significantly and increase by only 4%. The nominal wages growth in the enterprise sector will decrease in 2024 to about 8.7%. In addition, we forecast an acceleration of the employment growth in the enterprise sector to 0.1% in 2025 from -0.4% in 2024.
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Bank Pekao S.A.
Inflation and monetary policy
At the turn of 2023 and 2024, a period of dynamic disinflation, driven by the waning of extraordinary external shocks (pandemic, supply, energy, war-related) and the subsequent decline from a high reference base, especially non-core inflation, came to an end. Consumer inflation (CPI) in March 2024 reached a lower-than-expected minimum of 2.0% yoy. Thus, inflation fell within the acceptable deviation range around the NBP target (2.5% +/- 1 p.p.), but this was only a temporary stay. The lower-than-expected inflation was primarily driven by food prices, which were significantly affected by the price war among major retailers when the VAT rate on basic food products (raised to 5%) returned in April. Contradistinctively, in the second half of the year, food prices were boosted by domestic supply problems with fruits and vegetables. By the end of the year, supply issues with other food products, also emerged, driving up their prices.
The inflation path throughout 2024 was strongly dependent on regulated factors. The earlier-mentioned return to a higher VAT rate on food increased consumer inflation from the second quarter by about 0.8 p.p., but due to the price war, the impact was spread over time. Meanwhile, the partial unfreezing of electricity and gas prices for households pushed inflation up by 1.4 p.p. from July.
Core inflation gradually decreased over the course of 2024, reaching its minimum in the third quarter slightly above 3.5% yoy. It then remained relatively stable near 4% until the end of the year. The problem was a persistently high inflation of services, resulting from a strong labour market and continued high wage growth. Labor costs make up a significantly larger portion of total operational costs in services and their pass-through to retail prices is slow and prolonged.
The year 2024 ended with consumer inflation slightly below 5% yoy, with an annual average of 3.6%.
At the beginning of 2025, we expect further acceleration of inflation, peaking around 5.5% yoy in March, due to the low base effect. In the second half of the year, base effects will bring inflation down below 4% yoy. According to official legislation, electricity prices for households will be frozen at least until September 2025. Assuming that after this period energy prices will be unfrozen, the tariff prices proposed by energy suppliers and approved by the Energy Regulatory Office (URE) are unlikely to deviate significantly from the current frozen prices, so we do not anticipate a sharp rise in inflation in the fourth quarter 2025. However, "sticky," persistent core inflation (particularly services inflation) will accompany us for much of the year. We do not expect a rapid return to the NBP's inflation target (understood as the range of acceptable deviations around 2.5%) – in our opinion, this will be possible no earlier than in the first half of 2026.
Despite the lack of changes in NBP interest rates in 2024 (the reference rate remains at 5.75%), Polish monetary policy was far from dull due to high volatility in the Monetary Policy Council's (RPP) stance regarding future monetary policy. In the first half of the year, the Council maintained a "hawkish" tone, and our baseline scenario was no interest rate changes at least until the end of 2025. However, from September, there was a clear shift toward a "dovish" stance, with the NBP President discussing the potential start of a rate-cut cycle as early as the second quarter 2025. He also outlined the conditions that would need to be met for this to happen: stable current inflation and a projected decline in inflation to the NBP's target. In the final months of 2024, President NBP returned to a “hawkish” position, justifying this shift with concerns about a possible inflation spike in the fourth quarter due to the unfreezing of energy prices. Without official legislation ensuring price stabilization after the freezing period (until September 2025), he may have a convenient reason not to vote for rate cuts. The majority of the Council members seem to support this stance. This would delay the start of the rate-cut cycle until at least the second half of 2025.
In the face of unfavourable macroeconomic factors (e.g. persistent core inflation, solid economic growth), at some point, the NBP’s projection will show inflation below the target within the forecast horizon. We assume that in July (with the new inflation projection), this will lead the Council to cut rates by a total of 100 bps by the end of 2025 (to 4.75%) and another 125 bps in 2026 (to 3.50%).
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Bank Pekao S.A.
Fiscal policy
Fiscal deficit amounted to PLN 211 billio It is an elevated figure by historical standards (25% of total expenditures, which amounted to 854 bn PLN), but not a surprise, since this was the number written into the amended 2024 budget. The details og the budget statement show that the Ministry of Finance has been accelerating VAT refunds in 2024 to boost last year’s deficit and increase fiscal space for 2025. VAT revenue we strong in 2024, having risen by 18% compared to 2023. CIT revenue disappointed, having declined by 11.3% yoy, mainly due to weaker corporate profitability. PIT revenue rose by 6.4% compared to 2023, considerably below wage growth (+14.3% yoy), but mainly due to local government finance reform which raised their PIT revenues at the expense of state budget. General government deficit amounted to 5.7% GDP.
A mild fiscal consolidation is planned for 2025 (the GG deficit is expected to fall to 5.5% of GDP) with a record budget deficit of PLN 288.8bn. Budget revenues will be depleted next year due to the reform of the financing of the regional authorities, while the expenditure side will be burdened by military spending and the repayment of BGK/PFR liabilities. In other words, the increase in the budget deficit will be derived from transfers within the general government sector, and will not be passed to consumers in the form of transfers. For this reason, the Polish economy will not experience a pro-inflationary fiscal impulse in 2025. Financing the deficit will involve a record level of net borrowing needs (PLN 366.7 billion), most of which will be met by the domestic banking sector. The share of foreign currency-denominated debt is expected to increase slightly, but will remain below 25 per cent of total state debt. Last year, banks' demand for treasuries was further supported by record levels of excess liquidity - in 2025, excess liquidity in the system will remain elevated, as late and not very deep interest rate cuts will not manage to significantly raise the loan-to-deposit (LtD) ratio.
Capital markets
While 2024 was again not the best year for bondholders, equity investors were able to enjoy gains. Almost all of world's major stock indexes continued their uptrends. In the end, the US S&P500 gained 23.3%, Japan's Nikkei225 19.2% Germany's DAX 18.9%, China's Shanghai Composite 12.7% and Britain's FTSE100 4.7%. France's CAC40 lost 2.2% due to rising political risks in the country. Bond yields, on the other hand, continued to rise moderately, primarily in the U.S. and primarily in the longer segments of the curve (China being the only major exception). Consequently, the ongoing global monetary easing cycle proceeded in a different way than usual and was associated with a rise in market rates - the case of the US is again symptomatic here - since the Fed began its cuts, yields on US Treasury securities have risen by about 100 bps. This behavior of bond markets is due to both the relatively good performance of the US economy, as well as the high persistence of inflation and non-economic factors, i.e. the reaction to the outcome of the US presidential election. At the same time, 2024 was definitely a year of geographic differentiation, related to the different outlook for inflation, economic growth and interest rates in major economies.
In 2024, all of Warsaw's major stock market indexes had relatively low (often negative) rates of return. The rate of return of the WIG broad market index was 1.4%, the WIG20 recorded a decline of 6.4%, while the mWIG40 index of medium-sized companies gained 5.8%, and the sWIG80 index, grouping companies with smaller capitalizations, recorded an increase of 3.0%. The downward trend in the number of listed companies continued in 2024, with eleven withdrawals and eight IPOs. Interest in the Warsaw Stock Exchange increased significantly, the value of turnover on the stock market in total amounted to PLN 331 billion (for comparison - in 2023 it was PLN 274 billion).
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Bank Pekao S.A.
Banking sector
According latest data from the Polish Financial Supervision Authority (KNF), the banking sector's net profit amounted to PLN 42.2 billion. Profit growth amounted to 50.9% yoy, while the full year 2023 showed an increase in profit of 159.4 per cent yoy. The good performance is linked to the stabilization of interest rates at an elevated level (5.75%), which enabled the sector to achieve high interest revenue. The continued high cost of money contributed to the high interest revenue (PLN 173.7 billion compared with PLN 166.5 billion last year); it is also worth noting the decrease in interest expenses despite the high rates (PLN 66.6 billion compared with PLN 71.0 billion last year). It should be noted that, compared to 2023, the banking sector's earnings were weighed down by higher costs and depreciation (PLN 56.4billion vs. PLN 50.9billion), as well as provisions and write-downs (PLN 18.8bilion vs. PLN 16.2 billion).
According to data from the KNF, the banking sector's assets in December 2024 amounted to PLN 3,335 billion, up by 10.8% yoy. According to NBP data, the following trends were noted in the main deposit categories:
Despite the still elevated nominal inflow of new household deposits into the banking system, real inflows have already returned to levels noted prior to the inflationary episode. This translates into a deceleration in household deposit volume dynamics, which returned to single-digit levels in 2H24 (9.6% yoy in December). In 2025, nominal deposit dynamics will slowly decelerate and consumers will return to historical consumption and savings patterns.The volume of corporate deposits is oscillating around zero (3.9% yoy in December), which, given the marked acceleration of working capital credit, may indicate a difficult liquidity situation for Polish companies, especially in view of the still high dynamics of the payroll fund.
The structure of deposits remains stable. In November 2024, private household deposits accounted for 87.9% of retail deposits. The share of long-term deposits remained high (30.1%) due to increased interest rates.
In terms of the main categories of receivables, the following trends were noted:
After first quarter of 2024, declines in the volume of household loans were eventually over. Growth in consumer loans was particularly strong (5.7% yoy in December); mortgages - despite the lack of a government borrower support programme - were not far behind (3.4% yoy). Overall retail credit volume growth in December was 2.7% yoy.
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Bank Pekao S.A.
Business credit dynamics turned positive in third quarte of 2024, with its growth rate showing 5.4% yoy in December. Both working capital loans and investment credit grew above the aggregate level (6.9% yoy and 5.8% yoy, respectively); the lower growth in total corporate credit volume was due to weakness in real estate lending.
Deposit growth in the banking sector continued to progress slightly faster than credit growth. This phenomenon resulted in the stabilisation of the loan-to-deposit (LtD) ratio at the historically low level of 65.9%. Continued excess liquidity is resulting in banks' increased appetite for investing in treasuries, as evidenced by the dynamic increase in the share of securities and equities in the sector's total assets (+14.9% yoy in November against an increase in the volume of loans of only 5.2% yoy in the corresponding period).
The quality of the sector's loan portfolio in 2024 remained at historically good levels (NPL ratio of 3.7% in December 2024 compared to 4.0% in December 2023) despite interest rates remaining at elevated levels.
The share of non-performing loans in the household (4.0%) and small business (6.9%) loan portfolios remained on a favourable downward trajectory. As far as households are concerned, the reason is mainly due to the strong labour market and the clear increase in Poles' incomes. A worrying signal came from the corporate sector, where the percentage of risky liabilities unexpectedly doubled (from 3.8% in August to 6.9% in November). The sources of this increase should be sought in the difficult situation of several corporations in the chemical and transport-related sectors, but also - potentially - in methodological changes introduced by some banks.
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Bank Pekao S.A.
5. Important Events and Achievements
5.1 Changes in the Group’s structure
The composition of Bank Pekao S.A. Group is presented in the Note 2 to the Consolidated Financial Statements of Bank Pekao S.A. Group for the year ended on 31 December 2024.
In the 2024, there were no changes in the Bank Pekao S.A. Group.
5.2 Changes in the Statutory Bodies of the Bank
Supervisory Board
The composition of the Supervisory Board of Bank Pekao S.A. has as follows:
AS AT THE DATE OF SUBMITTING
THE REPORT FOR 2024
31 DECEMBER, 2024
AS AT THE DATE OF SUBMITTING THE REPORT FOR THE THIRD QUARTER OF 2024
Artur Olech
Chairman of the Supervisory Board
Artur Olech
Chairman of the Supervisory Board
Artur Olech
Chairman of the Supervisory Board
Bartosz Grześkowiak
Deputy Chairman of the Supervisory Board
Bartosz Grześkowiak
Deputy Chairman of the Supervisory Board
Bartosz Grześkowiak
Deputy Chairman of the Supervisory Board
Artur Nowak-Far
Deputy Chairman of the Supervisory Board
Artur Nowak-Far
Deputy Chairman of the Supervisory Board
Artur Nowak-Far
Deputy Chairman of the Supervisory Board
Krzysztof Czeszejko-Sochacki
Member of the Supervisory Board
Krzysztof Czeszejko-Sochacki
Member of the Supervisory Board
Anna Wawrzyńczak-Palynyczak
Secretary of the Supervisory Board
Magdalena Joanna Dziewguć
Member of the Supervisory Board
Magdalena Joanna Dziewguć
Member of the Supervisory Board
Krzysztof Czeszejko-Sochacki
Member of the Supervisory Board
Radosław Niedzielski
Member of the Supervisory Board
Radosław Niedzielski
Member of the Supervisory Board
Radosław Niedzielski
Member of the Supervisory Board
Jacek Nieścior
Member of the Supervisory Board
Jacek Nieścior
Member of the Supervisory Board
Jacek Nieścior
Member of the Supervisory Board
Witold Walkowiak
Member of the Supervisory Board
Witold Walkowiak
Member of the Supervisory Board
Witold Walkowiak
Member of the Supervisory Board
On 6 February 2025 Mr. Artur Olech resigned from his position as Chairman of the Bank's Supervisory Board and from his membership of the Bank's Supervisory Board, effective at the end of 5 March 2025.The resignation does not contain information about its reasons.
Management Board of the Bank
The members of the Bank's Management Board are appointed by the Supervisory Board for a joint three-year term of office.
The Management Board of Bank Pekao S.A., as of the date of submission of the report for 2024, consists of six members.
The Management Board ensures that the management system at the Bank is transparent and effective and runs the Bank's affairs in compliance with applicable laws and Best Practices. The core values underlying the management of the Bank are professionalism, reliability and confidentiality.
The composition of the Management Board of Bank Pekao S.A. has as follows:
AS AT THE DATE OF SUBMITTING
THE REPORT FOR 2024
31 DECEMBER, 2024
AS AT THE DATE OF SUBMITTING THE REPORT FOR THE THIRD QUARTER OF 2024
Cezary Stypułkowski
President of the Bank’s Management Board,
Cezary Stypułkowski
President of the Bank’s Management Board
Cezary Stypułkowski
Vice President of the Bank’s Management Board,
Managing the work of the Bank’s Management Board
Marcin Gadomski
Vice President of the Bank’s Management Board
Marcin Gadomski
Vice President of the Bank’s Management Board
Marcin Gadomski
Vice President of the Bank’s Management Board
Robert Sochacki
Vice President of the Bank’s Management Board
Robert Sochacki
Vice President of the Bank’s Management Board
Robert Sochacki
Vice President of the Bank’s Management Board
Błażej Szczecki
Vice President of the Bank’s Management Board
Błażej Szczecki
Vice President of the Bank’s Management Board
Błażej Szczecki
Vice President of the Bank’s Management Board
Dagmara Wojnar
Vice President of the Bank’s Management Board
Dagmara Wojnar
Vice President of the Bank’s Management Board
Dagmara Wojnar
Vice President of the Bank’s Management Board
Marcin Zygmanowski
Vice President of the Bank’s Management Board
Marcin Zygmanowski
Vice President of the Bank’s Management Board
Marcin Zygmanowski
Vice President of the Bank’s Management Board
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Bank Pekao S.A.
As of 31 December, 2024 the split of competences between the Members of the Management Board of the Bank was as follows:
Cezary Stypułkowski President of the Bank’s Management Board, convenes and chairs the meetings of the Management Board of the Bank, presents the position of the Management Board of the Bank to the Bank’s bodies and in external relations, in particular to public authorities. The President of the Management Board coordinates the work of Members of the Management Board of the Bank, issues dispositions in accordance with the provisions laid down in internal regulations in force at the Bank.President of the Management Board of the Bank oversees the following areas of the Bank’s operations: internal audit, compliance risk, corporate communications, investor relations, security, legal risk, strategic projects, human resources management, and macroeconomic analysis and digital transformation.The President of the Management Board of the Bank is appointed as the Member of the Management Board responsible for implementing the obligations set forth in the Law on Prevention of Money Laundering and Financing of Terrorism.
Marcin Gadomski Vice President of the Bank’s Management Board, supervises the activities of the Risk Management Division, including ESG risk, and is responsible for supervising the risk management process of the bancassurance activities.
Błażej Szczecki Vice President of the Bank’s Management Board , supervises the Retail and Private Banking Division.
Robert Sochacki Vice President of the Bank’s Management Board , supervises the operations of the Corporate Banking, Markets and Investment Banking Division, the Business Banking Division and Centre - Pekao Brokerage House.
Dagmara Wojnar Vice President of the Bank’s Management Board, supervises the operations of the Financial Division and was appointed as a Member of the Management Board to whom infringements are reported and who is responsible for the on- going functioning of the Whistleblowing procedure.
Marcin Zygmanowski Vice President of the Bank’s Management Board, supervises the activities of the Technology and Operations Division and coordinates activities aimed at proper management of the risk related to the security of the ICT environment.
Detailed information on the Bank's Management Board and Supervisory Board can be found in Chapter 12.
5.3 Organizational changes
In 2024, we introduced several organizational changes in the Bank's Head Office.
Headquarters operational unit „Pekao Brokerage Office” was transformed into the basic organizational HQ unit "Center - Pekao Brokerage Office".
From the Private Banking and Investment Products Division, the activities carried out by the previous Private Banking Strategy and Development Department as well as Private Banking Department were transferred to Retail Banking Division, while the “Center - Pekao Brokerage Office” was incorporated into the structure of Corporate Banking and MIB Division. As a result, Private Banking and Investment Products Division was liquidated and name of Retail Banking Division was changed to Retail and Private Banking Division.
The name of the Investors Relations and ESG Department has been changed to Investors Relations Department due to the transfer of most tasks related to ESG issues to Financial Planning Department and ESG and Risk Development Strategy Department.
Strategy Division was transformed into Strategy and Corporate Affairs Division by incorporating the Investors Relations Department, Corporate Communications Department, Legal Department, Equity Investments Office from the Analytics and Digital Transformation Center and Shareholder Cooperation Office into its structure.
In Human Resources Division was established Development Management and Organizational Culture Department by placing in this unit tasks related to, among others, employee development and competences, recruitment, implementation of internship and apprenticeship programmes, building the Bank’s image as an employer and designing and implementing activities to support the Bank’s organisational culture.
In Risk Management Division, ESG and Risk Development Strategy Office was transformed into ESG and Risk Development Strategy Department, while Collateral Valuation and Analytics Office was transformed into Collateral Valuation and Analytics Department. In Commercial Banking Division, Credit Products and Processes Office was transformed into Credit Products and Processes Department.
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Bank Pekao S.A.
5.4 Awards and distinctions
The activities of Bank Pekao S.A. gained wide recognition by clients, industry specialists, the market and the media, as evidenced by numerous awards and distinctions granted by Polish and foreign institutions. Measures aimed at providing customers with the highest quality products and services, innovation of the proposed solutions have been appreciated. Bank Pekao S.A. received a number of awards and distinctions in 2024.
The most relevant honors are presented below.
Bank of The Year in Poland
For the second year in a row, we received the prestigious title of "Bank of The Year in Poland" awarded by The Banker, part of The Financial Times group. The international group of experts appreciated the bank's innovations in digital banking and implementations related to cybersecurity, as well as strategic initiatives and innovative products for business.
Top Employer
For the fourteenth time, we have received the Top Employer title, which strengthens our position as one of the best employers in the country. Thanks to excellent HR policy and constantly improved HR practices, we create an inspiring, friendly work environment for our employees and an attractive offer for candidates.
Wyróżnienie Friendly Workplace 2024
For the fifth time, we have received the Friendly Workplace distinction, awarded by the MarkaPracodawcy.pl portal. The competition promotes employers who implement the best standards in the area of organizational culture and focus on building good relations between employees.
Filary Cyberbezpieczeństwa w kategorii Firma roku
In the competition organized by the CyberDefence24 service and the Defence24 Group, we won in the Company of the Year category. The second edition of the "Cybersecurity Pillars" competition selected companies, institutions and people who particularly contribute to the development of the Polish cybersecurity industry. We were recognized for the cyberPEKAO educational program and activities aimed at building awareness of online security, in particular: how to use technology responsibly, how to protect your data and information and what are the consequences of losing them.
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Bank Pekao S.A.
AWARDS AND DISTINCTIONS FOR CORPORATE AND INVESTMENT BANKING
Global Finance magazine appreciated our activities and awarded the following prizes:
The Best Investment Bank in Poland for 2024
For the eighth time, we won the title of the best investment bank in Poland. This year, we were also recognized as the best investment bank in the CEE region.
„The Best Trade Finance Provider in Poland”
For the sixth time, we received the distinction. Our: knowledge of local economic conditions, customer needs and innovation in products and services were appreciated.
Treasury and Cash Management Provider and in the Payments category in CEE
For another year in a row, we won on the Polish market in the Treasury and Cash Management Provider category and were recognized as the best bank in the Payments category in CEE. Our strengths in the area of treasury services, cash management and payments were appreciated.
Best Sub-Custodian Bank
For the twelfth time, we have won the title of the best trust bank in Poland. Based on market research, opinions of experts and entities using trust services and data from banks, we assessed customer relations, quality of service, competitive prices, efficient handling of non-standard inquiries, technology used, operational activity in the settlement of securities transactions, as well as development plans and knowledge of local regulations and practices.
We also received six awards from Global Finance Magazine in the area of investment banking and sustainable finance.
The Best Bank for Sustainable Finance in CEE for 2024,
The Best Bank for Sustainable Finance in Poland for 2024,
The Best Bank for Green Bonds in Central and Eastern Europe for 2024,
The Best Bank for Transition/Sustainability Linked Bonds in Central and Eastern Europe for 2024,
The Best Investment Bank in CEE for 2024,
The Best Investment Bank in Poland for 2024,
Achievements in sustainable finance were recognized, such as financing initiatives aimed at mitigating the negative effects of climate change and supporting the construction of a more sustainable future.
Award of the National Depository for Securities
The Bank and the Pekao Brokerage House were honored with an award for their direct involvement in development projects implemented by the National Depository for Securities. The Bank was recognized for its involvement in its cooperation with the KDPW Group, especially for its cooperation on the regulated cash market, active support for investors, flexible approach to changing conditions, and high quality of customer service. The Pekao Brokerage House was also recognized for its contribution to the high level of maintaining securities records, taking into account the scale of its operations.
"Financing Provider of the Year, CEE" by Eurobuild magazine
We won the Eurobuild magazine's "Financing Provider of the Year, CEE" category, winning one of the most important and prestigious awards in the commercial real estate sector in Central and Eastern Europe. The winner in this category is selected based on the size, scope and type of financing transactions completed, as well as the company's reputation.
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Bank Pekao S.A.
Golden Emblem Highest Quality QI 2024
We received the Golden Emblem Quality International distinction for new documentation for corporate clients. The bank's significant changes in processes and procedures for products and services directed to corporate clients were appreciated.
Leader and Partner in the Management of Local Government Units' Finances
The Polish Bank Association has awarded us the Leader and Partner in the Management of Local Government Units' Finances award. The bank was recognized for its results on the banking and local government market and for positively building intersectoral dialogue and facilitating access to bank financing for local government units. The Polish Bank Association has also awarded us the Nicolaus Copernicus Medal - this is recognition for special merits in the construction and development of the banking and local government sectors.
Market Leader in Poland 2024 and Best Services in Poland 2024 awarded by Euromoney
For the third year in a row, we have been awarded for our trade finance services in a competition organized by the renowned, international magazine Euromoney. In the Best Trade Finance Survey 2024 ranking, Bank Pekao was recognized as the market leader in Poland, winning the title of Market Leader in Poland 2024 and overtaking the competition in the category of Best Services in Poland 2024.
Poland's Best Cash Management Bank
Poland's Best Bank for Cash Management Products Poland's
Best Cash Management Bank for Client Service.
Bank Pekao's transaction banking won the prestigious international ranking of Euromoney magazine. The first place confirms the bank's position as a leader on the Polish banking market and places the bank among the world's best institutions providing cash management services.
AWARDS AND DISTINCTIONS FOR RETAIL BANKING AND PRIVATE BANKING
"Institution of the Year"
In the 9th edition of the ranking, we were distinguished in seven categories. We took first places in two categories related to remote and mobile service, and in the next five the Bank was among the leaders
The Bank was also awarded in the following categories:
- the best service in the facility for positive experiences and understanding of customers during direct contacts. The titles of the Best Bank Branches in Poland were awarded to as many as 30 branches of the Bank,
- the best Private Banking - the high competences of advisors, the ability to present a wide range of solutions and the partnership approach during meetings were appreciated,
- the best bank for companies - the outstanding quality of customer service for customers interested in learning about the account offer and additional services for companies was appreciated,
- the best process of opening an account at a branch,
- the best remote account opening process - the efficient and friendly account opening process was appreciated both in the branch and in the selfie process.
After summarizing all 10 ranking categories, we were recognized as the second best bank in Poland.
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Bank Pekao S.A.
Golden Banker 2024 – 2nd place in four categories
In the Złoty Bankier 2024 ranking organized by Bankier.pl and Plus Biznesu, we won second place in the categories: personal account, child account, mortgage loan and payment card design. The products offered by the Bank were appreciated for their attractive offer and the aesthetic and educational values of the Mastercard PeoPay KIDS card.
AWARDS AND DISTINCTIONS FOR ENTERPRISE BANKING
Marka Godna Zaufania - the best loans for companies
For the second time in a row, we won in the category "Zastrzyk fiansowy” or the bank that offers the best loans for companies" in the “Marka Godna Zaufania” ranking organized by the MyCompany Polska magazine. During the survey, respondents could indicate only one brand in a given category that they trusted the most. The bank gained as much as 73% of votes.
The Best Digital Solutions for SMEs in the CEE region 2024
We won first place in the categories The Best Digital SME Lending and The Best Online Banking for SMEs in the ranking The Best Digital Solutions for SMEs in the CEE region 2024 organized by the SME Banking Club association.
AWARDS
AWARDS AND DISTINCTIONS FOR GROUP’S SUBSIDIARIES
„Perły Polskiego Leasingu”
Pekao Leasing has once again been awarded the title of „Perły Polskiego Leasingu” awarded by Gazeta Finansowa. The product offer tailored to the needs of customers and the ability to build long-term relationships with customers were appreciated.
„Turbiny Polskiej Gospodarki 2024”
Pekao Leasing received the prestigious distinction “Turbiny Polskiej Gospodarki 2024", awarded by Gazeta Finansowa. The innovative product "Registration for PLN 0", created to support the small and medium-sized enterprise sector, was distinguished.
Five Alfa awards for Pekao TFI
Pekao TFI won the Alfa 2023 main prize in the "Investment Fund Company" category and in the "Best PPK funds" category. Alfa 2023 awards also went to the following subfunds: Pekao Stabilnego Wzrostu, Pekao Obligacji – Dynamiczna Alokacja 2, Pekao Dłużny Active. In addition, Pekao TFI subfunds won Alfa 2023 awards: Pekao Dynamicznych Spółek, Pekao Obligacji – Dynamiczna Alokacja FIO , Pekao Obligacji Plus
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
6. Information for the Investors
6.1 The Bank’s share capital and share ownership structure
As at 31 December, 2024, the share capital of Bank Pekao S.A. amounted to PLN 262,470,034 and remained unchanged until the date of submitting the report. The Bank's share capital was divided into 262,470,034 shares in the following series:
- 137,650,000 Series A bearer shares with a par value of PLN 1.00 per share,
- 7,690,000 Series B bearer shares with a par value of PLN 1.00 per share,
- 10,630,632 Series C bearer shares with a par value of PLN 1.00 per share,
- 9,777,571 Series D bearer shares with a par value of PLN 1.00 per share,
- 373,644 Series E bearer shares with a par value of PLN 1.00 per share,
- 621,411 Series F bearer shares with a par value of PLN 1.00 per share,
- 603,377 Series G bearer shares with a par value of PLN 1.00 per share,
- 359,840 Series H bearer shares with a par value of PLN 1.00 per share,
- 94,763,559 Series I bearer shares with a par value of PLN 1.00 per share.
All the existing shares are ordinary bearer shares. There are no special preferences or limitations connected with the shares, or differences in the rights attached to them. The rights and obligations related to the shares are defined by the provisions of the Polish Commercial Companies Code and other applicable law.
Shareholders of Bank Pekao S.A., holding directly or indirectly, through subsidiaries, at least 5% of the total number of votes at the General Meeting of the Bank, are as follows:
NUMBER OF SHARES AND VOTES AT THE GENERAL MEETING
SHARE IN SHARE CAPITAL
AND TOTAL NUMBER OF VOTES AT THE GENERAL MEETING
NUMBER OF SHARES AND VOTES AT THE GENERAL MEETING
SHARE IN SHARE
CAPITAL
AND TOTAL NUMBER OF VOTES AT THE GENERAL MEETING
NUMBER OF SHARES AND VOTES AT THE GENERAL MEETING
SHARE IN SHARE CAPITAL
AND TOTAL NUMBER OF VOTES AT THE GENERAL MEETING
SHAREHOLDER’S NAME
AS AT THE DATE OF SUBMITTING
THE REPORT FOR
2024
31 DECEMBER 2024
AS AT THE DATE OF SUBMITTING
THE REPORT
FOR THE THIRD QUARTER
OF 2023
Powszechny Zakład Ubezpieczeń S.A.
52,494,007
20.00%
52,494,007
20.00%
52,494,007
20.00%
Polski Fundusz Rozwoju S.A.
33,596,166
12.80%
33,596,166
12.80%
33,596,166
12.80%
Nationale-Nederlanden Otwarty Fundusz Emerytalny
16,834,767
6.41%
16,834,767
6.41%
18,367,000
7.00%
Allianz Polska Otwarty Fundusz Emerytalny
14,140,661
5.39%
14,140,661
5.39%
14,000,000
5.33%
Other shareholders (below 5%)
145,404,433
55.40%
145,405,200
55.40%
144,012,861
54.87%
Total
262,470,034
100.00%
262,470,034
100.00%
262,470,034
100.00%
Until the date of submitting the report the Bank has not received any other notifications regarding changes in the ownership structure in accordance with par. 69 of the Act of July 29, 2005 on Public Offerings and Conditions Governing the Introduction of Financial Instruments to an Organized System of Trading, and on Public Companies.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Polish open-end pension funds (OFE) constitute the group of financial investors holding a significant equity interest in the Bank. Based on their publicly available financial reports, as of 31 December, 2024 OFE’s held in aggregate 19.24% of the Bank’s shares.
The Polish open-end pension funds’ holdings in Bank Pekao S.A.:
NUMBER OF SHARES
AND VOTES AT GENERAL MEETING
% OF SHARE CAPITAL
AND TOTAL VOTE AT GENERAL MEETING
NUMBER OF SHARES
AND VOTES AT GENERAL MEETING
% OF SHARE CAPITAL
AND TOTAL VOTE AT GENERAL MEETING
SHAREHOLDER
31 DECEMBER 2024
31 DECEMBER 2023
Nationale-Nederlanden OFE
16,834,767
6.41%
18,928,030
7.21%
Allianz Polska OFE
14,140,661
5.39%
15,500,051
5.91%
Generali OFE
7,299,199
2.78%
8,406,878
3.20%
Vienna OFE
4,898,495
1.87%
4,998,495
1.90%
PKO BP Bankowy OFE
3,237,007
1.23%
3,610,401
1.38%
Uniqa OFE
3,153,684
1.20%
3,153,684
1.20%
OFE Pocztylion
926,568
0.35%
926,568
0.35%
Total
50,490,381
19,24%
55,524,107
21.15%
Note : OFE Reports, annual structure of open-end pension funds assets.
6.2 Performance of market valuation of Bank Pekao S.A.’s stock
The shares of Bank Pekao S.A. have been listed on the Warsaw Stock Exchange since June 1998 and they are one of the most liquid equities in Poland and Central and Eastern Europe.
The Bank’s market capitalization as of 31 December, 2024 amounted to PLN 36.2 billion making the Bank one of the largest listed companies in Central and Eastern Europe. Given the high capitalization and liquidity the Bank’s shares are a part of many important stock indices maintained by domestic and foreign institutions including Polish blue chips index – WIG20 and WIG30, banking sector index WIG-Banks, STOXX Europe 600 Index, the index of the largest and most liquid securities in Europe, FTSE Developed Equity Index as well as MSCI Emerging Markets. The Bank's shares are also included in Bloomberg Gender Equality Index, bringing together a listed company actively working for gender equality at work.
With the average daily turnover volume at the level of 664 thousands of shares and the worth of trading at PLN 25.9 billion in 2024, the share of the Bank’s stock in trading on the WSE amounted to 7.8%.
Share price of Bank Pekao S.A. decreased by 9% y/y and reached PLN 137.90 as at the end of December 2024 compared to PLN 152.05 a year earlier. Total shareholder return for the Bank's shareholders (including dividend payment at PLN 19.20 per share) amounted to 3% and was lower than return for the WIG Banks index, which grew by 12% in 2024.
Share price performance of Polish banks in 2024 was influenced primarily by the sector's record results thanks to high interest rates remaining throughout the year.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Basic information about Bank Pekao S.A. shares
2024
2023
Share price at the end of the year (PLN)
137.90
152.05
Maximum share price (PLN)
191.50
154.00
Minimum share price (PLN)
131.15
73.54
Number of shares
262 470 034
262 470 034
Capitalization at the end of the year (PLN billion)
36.2
39.9
Average trading volume
664 303
736 579
Earnings per share (PLN) (*)
24.19
21.87
Book value per share (PLN) (**)
116.75
107.91
Dividend per share paid in a given year (PLN)
19.20
5.42
P/E (x) (***)
5.7
7.0
P/BV (x) (***)
1.18
1.41
Note: Data based on GPW statistics.
(*) Earnings per share calculated as the sum of quarterly earnings per share for four consecutive quarters, where the last quarter is the third quarter of a given year.
(**) Book value per share calculated on the basis of financial data for the third quarter of a given year.
(***) Indicators calculated in relation to the financial data after the third quarter of a given year.
6.3 Dividend payment history
In 2024, the Bank paid a record dividend of PLN 19.20 per share, which consisted of the payment of 50% of net profit for 2023 and the payment of undistributed net profit for 2019. Dividend yield was 10.1%. In the years 2009-2024, the Bank regularly paid dividends, except for the distribution of profit for 2019, when due to the COVID-19 pandemic, the Polish Financial Supervision Authority recommended the Bank not to pay dividends. The total value of dividends paid for the years 2009-2023 amounted to over PLN 28 billion, making the Bank one of the Polish companies with the highest level of dividends paid in recent years.
The dividend payments from 2009 to 2023 are presented below:
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Dividend for the year (in PLN million)
761
1,785
1,412
2,202
2,614
2,625
2,283
2,278
2,074
1,732
-
843
1,129
1,423
5,039
Dividend per 1 share (in PLN)
2.90
6.80
5.38
8.39
9.96
10.00
8.70
8.68
7.90
6.60
-
3.21
4.30
5.42
19.20
Note: Dividend presented in the year in which the profit intended for dividend payment was generated.
The final decision on the distribution of the profit for 2024 and its allocation to the payment of dividends will be made by the General Meeting of Shareholders.
6.4 Investor Relations
The Bank’s activity, in the investor relations area, is focused on providing transparent and active communication with the market through active co-operation with investors, analysts and rating agencies, as well as fulfilling disclosure requirements within the frameworks of applicable law regulations.
The Bank’s representatives regularly hold many meetings with investors from Poland and abroad, and take part in most of the regional and sector dedicated investors conferences. In total, in 2024, the bank participated in 14 investor conferences and roadshows meetings with institutional investors from key financial centers around the world. In 2024, the Bank's representatives held meetings with a total of 359 investors. Financial results of Bank Pekao S.A. Group are presented quarterly at conferences that are simultaneously transmitted via Internet.
The Bank’s financial results and its activity are regularly monitored by analysts representing Polish and foreign brokerage entities. In 2024, 16 analysts published reports and recommendations on the Bank.
Recommendation structure for Bank Pekao S.A. shares for 31 December 2024
Buy/Accumulate
8
Hold/Neutral
7
Reduce/Sell
1
The activity of the Bank’s investor relations is to enable to make a reliable evaluation of the Bank’s financial situation, its market position and business model effectiveness in the context of banking sector conditions and macroeconomic situation in the domestic economy as well as on international markets.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Relevant information for the investors about the Bank is available on the Bank’s website:
https://www.pekao.com.pl/en/investors-relations.html
The Bank publishes also on-line annual report available on the Bank’s website, where is also posted “Information Policy of Bank Polska Kasa Opieki Spółka Akcyjna regarding communication with investors, media and customers”.
Contact details for the Investor Relations Office
e-mail: bri@pekao.com.pl
tel.: +48 22 524 55 27
6.5 Financial credibility ratings
Bank Pekao S.A. financial credibility ratings
Bank Pekao S.A. co-operates with three leading credit rating agencies: Fitch Ratings (the Fitch), S&P Global Ratings (S&P), and Moody’s Investors Service. In the case of the first two agencies, the ratings are provided on a solicited basis under relevant agreements and with respect to Moody’s Investors Service the ratings are unsolicited and they are based on publicly available information and review meetings.
As of 31 December 2024, Bank Pekao S.A. had assigned following financial credibility ratings:
FITCH RATINGS
BANK PEKAO S.A.
POLAND
Long-Term Default rating (IDR)
BBB
A-
Short-Term Default Rating
F2
F1
Viability Rating
bbb
-
Government Support Rating
No support
-
Outlook
Stable
Stable
National Long-Term Rating
AA-(pol)
(stable outlook)
-
National Short-Term Rating
F1+(pol)
-
S&P GLOBAL RATINGS
BANK PEKAO S.A.
POLAND
Long-term rating in foreign currencies
A-
A-
Long-term rating in domestic currency
A-
A
Short-term rating in foreign currencies
A-2
A-2
Short-term rating in domestic currency
A-2
A-1
Stand-alone credit profile
bbb+
-
Outlook
Stable
Stable
Rating of Senior Preferred series SP2 bonds
A-
-
Rating of Senior Non-Preferred series ESN1 eurobonds
BBB
-
Rating of Senior Non-Preferred series ESN2 eurobonds
BBB
-
Rating of Senior Non-Preferred series SN3 bonds
BBB
-
S&P GLOBAL RATINGS (RESOLUTION COUNTERPARTY RATING)
BANK PEKAO S.A.
POLAND
Long - term RCR in foreign currencies
A
-
Short - term RCR in foreign currencies
A-1
-
Long - term RCR in domestic currency
A
-
Short - term RCR in domestic currency
A-1
-
MOODY’S INVESTORS SERVICE (UNSOLICITED RATING)
BANK PEKAO S.A.
POLAND
Long-term foreign-currency deposit rating
A2
A2
Short-term deposit rating
Prime-1
Prime-1
Baseline Credit Assessment
baa2
-
Long-term counterparty risk assessment
A2(cr)
-
Short-term counterparty risk assessment
Prime-1(cr)
-
Outlook
Stable
Stable
Long-term Counterparty Risk Rating (CRR)
A2
-
Short-term Counterparty Risk Rating (CRR)
Prime-1
-
The history of rating changes is available on the Bank's website: https://www.pekao.com.pl/en/investors-relations/bonds-and-
ratings/ratings.html
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Bank Pekao's position in ESG ratings and indices
The Bank's involvement in ESG activities is assessed by the market in international rankings and indices. The Bank's priority is to increase its position in the rankings regarding activities for the environment, society and corporate governance, resulting from the systematic undertaking and disclosure of activities in the ESG area. More information is available on the Bank's website: https://www.pekao.com.pl/esg/ .
Pekao Bank Hipoteczny S.A. financial credibility ratings
Pekao Bank Hipoteczny S.A. cooperates with the international rating agency Fitch Ratings.
Fitch emphasizes that the rating of Pekao Bank Hipoteczny S.A. is linked to the rating of Bank Pekao S.A., which holds 100% of the Bank's shares. According to Fitch, the rating of Pekao Bank Hipoteczny S.A. is influenced by the level of integration with the parent entity and the scale of operations and the Bank's capital.
At the end of December 2024, the long-term rating of Pekao Bank Hipoteczny S.A., assigned by the Fitch rating agency, was BBB with a "Stable" outlook. Covered bonds issued by Pekao Bank Hipoteczny S.A. had a "BBB+" rating. In the review of 22 January, 2025, Fitch maintained the ratings for Pekao Bank Hipoteczny S.A. at an unchanged level.
A high rating of the bonds means that Pekao Bank Hipoteczny S.A. has the ability to issue securities with a high level of security and obtain long-term funds for credit activities.
More information is available on the Pekao Bank Hipoteczny website: https://www.pekaobh.pl/relacje-inwestorskie/raporty-
ratingi.html
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
6.6 Disclosure to the extent specified by the Principle Adverse Impacts under the SFDR Regulation for Pekao Group as an investee
Statement concerning Principle Adverse Impacts of investment decisions on sustainable development factors
INDICATOR OF ADVERSE IMPACTS ON SUSTAINABILITY FACTORS
2024
Greenhouse gas emissions scope 1
8 704 t CO 2 e according to GHG Protocol methodology
Greenhouse gas emissions scope 2
24 498 t CO 2 e according to GHG Protocol methodology
Greenhouse gas emissions scope 3
14 657 189 t CO 2 e according to GHG Protocol methodology (subcategory 15)
Greenhouse gas emissions
Total greenhouse gas emissions
32 382 t CO 2 e (scope 1+2)
Exposure towards fossil fuel companies
Pekao Group companies do not operate in the fossil fuel sector and do not generate revenues from fossil fuel activities (as defined in Article 2, item 62 of Regulation (EU) 2018/1999 of the European Parliament and of the Council of December 11, 2018 on the Governance of the Energy Union and Climate Action).
Share of consumed and produced energy from non-renewable sources
Share of non-renewable energy consumed and produced in relation to renewable energy resources, expressed as a percentage of total energy resources
63%
Energy intensity per sector with significant climate impact
Energy consumption expressed in GWh
Pekao Group companies do not operate in sectors with a significant impact on the climate, i.e. those listed in Sections A through H in Appendix 1 to Regulation (EC) No. 1893/2006 of the European Parliament and of the Council of December 20, 2006 establishing the statistical classification of economic activities NACE Revision 2
Activities that adversely affect biodiversity-sensitive areas
Companies with facilities/operations in or near biodiversity-sensitive areas, where the activities of such companies have an adverse impact on such areas
Pekao Group companies do not conduct activities in or near biodiversity-sensitive areas that would adversely affect such areas (as defined by SFDR ‘biodiversity-sensitive areas: are Natura 2000 areas, UNESCO World Heritage Areas and so-called Key Biodiversity Areas, and others listed in Appendix D of Annex No. 2 to Commission Delegated Regulation (EU) 2021/2139 of June 4, 2021
Emissions of substances into the water
Tons of emissions of substances into the water
Pekao Group companies do not generate emissions of priority substances and certain other pollutants to water, as listed in Part A of Annex I to Directive 2008/105/EC of the European Parliament and of the Council of December 16, 2008 on environmental quality standards in the field of water policy.
Indicator of hazardous waste and radioactive waste
Tons of hazardous waste and radioactive waste
Pekao Group companies do not generate hazardous waste, i.e. waste that exhibits one or more of the hazardous properties listed in Annex III of Directive 2008/98/EC of the European Parliament and of the Council of November 19, 2008 on waste; and radioactive waste as defined in Article 3(7) of Council Directive 2011/70/Euroatom of July 19, 2011 establishing a Community framework for the responsible and safe management of spent nuclear fuel and radioactive waste.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
INDICATORS ON SOCIAL AND LABOR ISSUES, HUMAN RIGHTS ISSUES
AND ANTI-CORRUPTION AND ANTI-BRIBERY ISSUES
2024
Violations of initiative rules Global Compact and the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises
Currently, Pekao Group companies are working on a procedure introducing control processes and mechanisms to supervise compliance with the Global Compact Initiative principles. Work in this area is planned to be completed in 2025.
Lack of processes and controls to oversee compliance with the principles of the Global Compact and the OECD Guidelines for Multinational Enterprises
Currently, Pekao Group companies are working on a procedure introducing control processes and mechanisms to supervise compliance with the Global Compact Initiative principles. Work in this area is planned to be completed in 2025.
Unadjusted pay gap between men and women (data for Bank Pekao S.A.)
Gender wage gap, defined as the difference between men’s and women’s average gross hourly earnings, expressed as a percentage of men’s average gross hourly earnings
31,9%
Gender diversity of Management Board members
Average ratio of women to men on management boards of companies, expressed as a percentage of all management board members
17%
Exposure towards controversial weapons (anti-personnel mines, cluster munitions, chemical weapons and biological weapons)
Pekao Group companies are not involved in the production or sale of the controversial weapons mentioned in: (1) the Convention on the Prohibition of the Use, Stockpiling, Production and Transfer of Anti-Personnel Mines and on their Destruction of September 18, 1997; (2) the Convention on the Prohibition of Cluster Munitions, which entered into force on August 1, 2008; and (3) the Chemical Weapons Convention, which entered into force on April 29, 1997.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Additional climate and other environmental indicators
INDICATOR OF ADVERSE IMPACTS ON SUSTAINABILITY FACTORS
2024
Emissions of inorganic pollutants
Pekao Group companies do not emit inorganic pollutants in accordance with the definitions contained in Article 3(13) of Directive 2010/75/EU of the European Parliament and of the Council of November 24, 2010 on industrial emissions (integrated pollution prevention and control)
Emissions of air pollutants
Due to the nature of their operations, Pekao Group companies do not calculate emissions of anthropogenic air pollutants such as sulfur dioxide, nitrogen oxides, non-methane volatile organic compounds, ammonia and PM 2.5 fine particulate matter.
Emissions of ozone-depleting substances
Due to the nature of their operations, Pekao Group companies do not calculate the ozone-depleting emissions listed in the Montreal Protocol. Pekao Group companies have data on the consumption of refrigerants used in air-conditioning equipment, expressed in kilograms for the purpose of calculating GHG Protocol Scope 1 and 2 carbon dioxide emissions.
Investments in companies not implementing carbon reduction initiatives
Bank Pekao is implementing initiatives to reduce carbon emissions, as mentioned in the 13 2.1.1. section of this report.
Distribution of energy consumption by type of non-renewable energy sources
Consumption of fuel from coal and coal products: 0
Consumption of fuel derived from oil and petroleum products): 24 859 MWh
Consumption of fuel derived from natural gas: 11 496, 52 MWh
Consumption of fuel from other non-renewable sources: 0
Consumption of nuclear products: 0
Water reuse and recycling
Estimated water consumption: 109 394 cubic meters.
Pekao Group companies do not calculate the share of recycled and reused water.
Investments in companies without water policies
Pekao Group companies do not have water management policies.
Exposure towards areas of significant water scarcity
Pekao Group companies do not have facilities located in areas of significant water scarcity according to the Aqueduct Water Risk Atlas methodology, i.e. risk areas: “High” (3-4) and “Extremely High” (4- 5).
Investments in chemical manufacturing companies
The activities of Pekao Group companies are not covered by Chapter 20.2 in Appendix 1 to Regulation (EC) No. 1893/2006 of the European Parliament and of the Council of December 20, 2006 establishing the statistical classification of economic activities NACE Revision 2
Land degradation, desertification, soil sealing
Pekao Group companies are not engaged in activities that affect land degradation, desertification or soil sealing.
Investments in companies that do not use sustainable agricultural practices/sustainable land management practices
Pekao Group companies do not operate in the agricultural sector and do not manage land and are not obligated to use sustainable agricultural practices or strategies/practices or strategies for sustainable land management.
Investments in companies that do not follow sustainable marine and ocean practices
Pekao Group companies do not operate in the marine and ocean sector and are not obligated to follow sustainable marine and ocean practices.
Non-recycled waste indicator
Pekao Group companies do not calculate non-recycled waste.
Natural species and protected areas
Pekao Group companies do not carry out activities that affect endangered species included in the Red Book of Threatened Species (IUCN).
Pekao Group companies do not have a biodiversity conservation policy covering operational sites owned, leased or managed in or adjacent to a protected area or an area of high biodiversity outside protected areas.
Deforestation
Pekao Group companies do not have a policy to prevent deforestation.
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Bank Pekao S.A.
Additional indicators on social and labor issues, human rights issues, and anti-corruption and anti-bribery issues
INDICATOR OF ADVERSE IMPACTS ON
SUSTAINABILITY FACTORS
2024
Investments in companies that do not have
an occupational accident prevention policy
Bank Pekao Group companies have a Bank Pekao S.A. Group Policy on Occupational Health and Safety.
Accident incidence rate
1,55
Number of days lost due to injuries,
accidents, fatalities or illnesses
1596
No supplier code of conduct
Bank Pekao has the Code of Ethics for Suppliers of Bank Pekao S.A. (in the context of hazardous working conditions, precarious employment, child labor and forced labor).
Lack of a mechanism for handling
complaints regarding employee issues
The mechanism for handling complaints regarding employee issues is included in the Mobbing Prevention Policy of Bank Polska Kasa Opieki Spółka Akcyjna and relevant separate regulations developed by subsidiaries.
Inadequate protection of whistleblowers
No occurrence of such cases. Whistleblower protection issues are covered in Bank Pekao S.A.’s Whistleblowing Policy.
Instances of discrimination
Number of instances of discrimination: 0
Number of incidences of discrimination leading to sanctions: 0
Remuneration of the CEO
Value of the indicator for the Bank: 9,6%
The Bank has a regulation called Remuneration policy for members of the Supervisory Board and Management Board of Bank Polska Kasa Opieki Spółka Akcyjna.
No policy on respect for human rights
Pekao Group companies do not have a comprehensive policy on respect for human rights.
No due diligence process
Pekao Group companies do not conduct due diligence to identify, mitigate or eliminate adverse human rights impacts.
Lack of procedures and measures to
prevent human trafficking
Pekao Group companies do not have procedures and measures in place to prevent human trafficking.
Activities and suppliers at
significant risk of child labor incidents
Bank Pekao has internal policies in this area, including in particular the Bank’s Compliance Policy, the Pekao Group Code of Conduct, the Code of Ethics for Suppliers of Bank Pekao S.A. The HR Strategy Division carrie s out activities to ensure compliance with generally applicable laws.
Activities and suppliers at
significant risk of forced labor incidents
Bank Pekao has internal policies in this area, including in particular the Bank’s Compliance Policy, the Pekao Group Code of Conduct. The HR Strategy Division carries out activities to ensure compliance with generally applicable laws.
Number of identified cases of serious
human rights
issues and incidents
No cases of serious human rights issues or incidents have been identified in Pekao Group companies.
No policy against corruption and bribery
Bank Pekao Group companies are bound by the Bank Pekao Group’s Corruption Prevention Policy.
Cases of not taking sufficient action
on violations of anti-corruption and bribery standards
No cases of violations of anti-corruption and anti-bribery procedures and standards have been reported in Pekao Group companies.
Number of convictions and amount of fines
for violations of anti-corruption and anti-bribery laws
No convictions for violations of anti-corruption and anti-bribery laws were recorded at Pekao Group companies. The amount of fines for violations of anti-corruption and anti-bribery laws is PLN 0.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
7. Activity of Bank Pekao S.A. Group
7.1 Important factors influencing the Group’s activities and results
The activities of Bank Pekao in 2024 were mainly determined by the macroeconomic situation in the country and abroad. Despite the difficulties experienced by the economies of Poland's key trading partners, with particular emphasis on Germany, the Polish economy achieved a satisfactory GDP growth rate of +2.9%, compared to only 0.2% achieved in the previous year. Inflation remained at an elevated level, reaching +4.7% at the end of the year. In the eurozone and the USA, central banks began interest rate cuts, while the Monetary Policy Council did not decide to make such a move in 2024. The reference rate remained at 5.75% throughout the year.
The moderate pace of economic growth translated only to a limited extent into the demand for credit. The retail banking segment experienced a better economic situation, where both mortgage loans and cash loans recorded good dynamics. In case of mortgages, we were still dealing with the effect of the government program "Safe Credit 2%", the effects of which in the growth of the volume of loans were visible in the initial part of the year. Cash loans recorded good dynamics. The demand for loans in this segment was supported by the improving consumer situation, low unemployment and improving real wages. The situation was more difficult in the corporate loan segment, where the volume of loans increased slightly. Low demand for investment loans continued, due to stagnation in the largest European economies - the main recipients of Polish export products. Additionally, there were delays in the spending of EU funds, in particular from the National Reconstruction Plan.
Deposits in the banking sector grew at a faster than in 2024 than loans, contributing to a decline in the Loans/Deposits ratio in the sector to the lowest level in years. The environment of high interest rates encouraged bank customers to invest their savings in banks, but a large part of these funds went to current accounts. This allowed banks to reduce their funding costs. Despite interest rates being 100 basis points lower than in 2023, banks were able to improve their already high interest margins, and the sector’s net interest income grew at a double-digit rate.
Growing economic activity translated into an increase in the fee & commission income, which increased at a moderate pace last year. It is worth emphasizing the good result achieved in the area of investment funds and brokerage activities. A large inflow of funds to investment funds (especially to debt products) allowed the sector to record high dynamics of the commission income in this area.
Operating costs in the banking sector grew at a double-digit rate in 2024, due to high inflation and persistent wage pressure. Both salary costs and other operating costs increased. Banks tried to limit cost pressure by further reducing employment and the number of branches. Bank Pekao also continued the process of reducing the number of stationary branches in 2024.
Last year, the sector experienced an increase in regulatory costs compared to 2023. The government introduced a new credit holiday program for mortgage borrowers, but on a much smaller scale than in 2022-2023, by adding an income criterion. Additionally, contributions paid by banks to the Bank Guarantee Fund increased.
Risk costs in the banking sector remained relatively low in 2024. Asset quality remained good, especially in the retail segment, where the macroeconomic situation was favorable to customers. In the corporate sector, we observed an increase in risk costs due to individual credit exposures.
The problem of CHF mortgage loans continued to affect banks, which continued to create additional provisions for this reason. The case law on these loans remained unfavorable for the banking sector. The number of lawsuits from customers was growing, also in the case of loans that had already been repaid. Banks were more active in trying to reach out to customers with settlement proposals. Bank Pekao offered its clients the “Bezpieczna ugoda 2%” program, which was well-received by customers.
Despite rising operating costs and still significant reserves for CHF mortgage loans, the banking sector’s net profit turned out to be a record last year and increased by 52%. The key positive factor was the increase in net interest income, with a visible increase in credit volumes.
In 2024, banks continued processes related to operational and digital transformation, the importance of customer service in remote channels grew, and many banking processes were digitized. New technical solutions were introduced and the functionalities of banking applications were expanded. This was accompanied by a reduction in stationary branches.
Bank Pekao, due to MREL requirements, in 2024 issued Senior Preferred instruments (worth PLN 600 million) and Senior Non-Preferred (PLN 500 million on the Polish market and EUR 500 million on the European market).
In terms of capital requirements, in accordance with the law, Bank Pekao S.A. Group should maintain minimum levels of capital ratios at regulatory level of Pillar I resulting from the CRR Regulation, the Pillar II requirement under the Banking Law and the combined buffer requirement resulting from the Act on Macroprudential Supervision.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
7.2 Major sources of risk and threats
Effective risk management is a prerequisite for maintaining a high level of security of the funds entrusted to the Group, and for achieving a sustainable and balanced profit growth within the Group’s risk appetite.
The key risks material for the Group include credit risk, liquidity, market risks and operational risk. Moreover, the Group identifies the following risks as material in its business activity: business, reputation, compliance, excessive leverage, bancassurance and model risks. The Group also identifies ESG risk defined as risk of negative financial effects arising from impacts of environmental, social or governance factors.
The Group has adopted a comprehensive and consolidated approach to risk management. It extends to all units of the Bank and subsidiaries. Risks are monitored and managed taking into account business profitability and the capital required to cover the losses resulting from these risks.
The Management Board of the Bank is responsible for achieving the strategic risk management goals. The Management Board designs, implements and ensures the operation of the risk management system which covers all material risks. The Management Board develops the risk management strategy and defines the Group’s risk appetite. The Supervisory Board of the Bank, supported by the Risk Committee and Audit Committee, oversees whether the Group’s policy of taking various risks is compliant with the overall strategy and financial plan. The Supervisory Board of the Bank approves the risk management strategy and risk appetite of the Group and evaluates the adequacy and efficiency of the risk management system. The Credit Committee and Credit Risk Committee play an important role in the credit risk management, the Asset, Liability and Risk Committee and Liquidity and Market Risk Committee in market and liquidity risk management, the Operational Risk Committee and Bank Security Committee in the management of the operational risk and the Model Risk Committee in model risk management.
The rules of managing each of the risks are defined in the guidelines set up by the credit risk strategy and policy, financial risk strategy and investment and market risk policy and the operational risk management strategy and policy approved annually by the Management Board (policies) and by the Supervisory Board of the Bank (strategies) as well as in internal procedures.
Detailed reports on credit, liquidity, market, operational and model risks are presented to the Management Board and the Supervisory Board of the Bank on a regular basis.
The rules and instruments of managing each of the risks and information on the risk exposure are included in Note 45 to the Consolidated Financial Statements of Bank Pekao S.A. for the period ended on 31 December, 2024 and in the document “Information in respect to capital adequacy of Bank Pekao S.A Group as at 31 December 2024” published on the Bank’s website.
Operational risk
The objective of proper operational risk management is to maintain the operational risk the Group takes, on the level consistent with a specific risk appetite. Operational risk management is based on internal procedures that are consistent with the law requirements, resolutions, recommendations and guidelines of the supervisor and includes: identification, assessment, monitoring, preventing and reporting of operational risk.
The operational risk profile is determined mainly by two operational event categories, in which the highest exposure to operational risk is identified i.e. Clients, products and business practices and Execution, delivery and process management.
This is reflected in the table below, which presents the distribution of losses resulting from operational events by categories as defined by the Article 324 of Regulation (EU) No 575/2013 of the European Parliament and of the Council.
The Group executes mitigation actions for all of the operational event categories, with particular emphasis on categories of the highest relevance.
OPERATIONAL EVENTS BY CATEGORIES
2024
2023
Internal frauds
0.00%
0.15%
External frauds
3.22%
1.28%
Employment practices and workplace safety
0.14%
0.00%
Clients, products and business practices
95.65%
94.05%
Damages to physical assets
0.23%
0.28%
Business disruption and system failures
0.63%
0.03%
Execution, delivery and process management
0.13%
4.21%
Total
100.00%
100.00%
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Bank executes mitigation actions for all of the operational event categories, with particular emphasis on categories of the highest relevance.
OPERATIONAL EVENTS BY CATEGORIES
2024
2023
Internal frauds
0.00%
0.18%
External frauds
3.64%
0.66%
Employment practices and workplace safety
0.15%
0.00%
Clients, products and business practices
95.21%
93.71%
Damages to physical assets
0.26%
0.34%
Business disruption and system failures
0.71%
0.03%
Execution, delivery and process management
0.03%
5.08%
Total
100.00%
100.00%
Credit risk
Managing credit risk and maintaining it at a safe level is vital for the Bank’s financial performance. In order to minimize credit risk, special procedures have been established, pertaining in particular to the rules of assessing obligor and transaction risk, collateralization of loan and lease receivables, credit decision powers and concentration risk management.
Prudent credit risk management at Bank Pekao S.A. is based on the Credit Risk Strategy and Credit Risk Policy, which take into account, among the others, measures reducing the potential threats coming from macroeconomic factors related to the armed conflict in Ukraine and the related disturbances in the supply of raw materials and their impact on the quality of the loan portfolio. The same approach is applied in the Bank’s subsidiaries.
Lending activities are subject to limits following both from the external regulations (CRR) and the Bank’s internal standards, including limits concerning exposure concentration ratios for individual sectors of the economy, limit on the share of large exposures in the Bank’s loan portfolio, portfolio limits and limits of exposures to countries, foreign banks and domestic financial institutions.
The credit decision powers, lending restrictions as well as internal and external prudential standards, pertain to loans and guarantees as well as derivative transactions and debt instruments. The quality of the loan portfolio is also protected by periodic reviews and ongoing monitoring of the timely servicing of loans and the financial standing of customers.
The Bank has continued to work on further rationalization of the credit process with an aim to obtaining better efficiency and security, including in particular enhancement of the procedures and tools for risk measurement and monitoring.
Credit risk concentration limits
According to the applicable regulations the total exposure of the Bank to the risks associated with a client or a group of connected clients may not exceed 25% of a bank’s Tier 1 capital. In 2024, the limits of large exposures were not exceeded.
Sector concentration
In order to mitigate credit risk associated with excessive sector concentration the Bank sets up a system for shaping the sectoral structure of credit exposure. Every year within Credit Risk Policy the Bank defines sector limits for particular sectors of economy. These limits are subject to ongoing monitoring. The system applies to credit exposure in particular types of business activity according to the classification based on the Polish Classification of Economic Activities (Polska Klasyfikacja Działalności – PKD).
Concentration limits are set based on the Bank’s current credit exposure and risk assessment of each sector. Periodic monitoring of the Bank’s exposure allows for ongoing identification of the sectors in which the concentration of exposure may be too excessive. In such cases, an analysis of the economic situation of the sector is performed including both the current and forecast trends and an assessment of quality of the current exposure to that sector. These measures enable the Bank to formulate the activities to reduce sector concentration risk and ongoing adaptation of the Bank’s Credit Risk Policy to a changing environment.
The Group’s risk management process
The Bank supervises the risk related with subsidiaries. In particular an assessment on size and profile of risk related with their activities is performed. Risk management processes are consistent throughout the Group and adapted to the complexity of the risk profile of individual entities, in accordance with the principle of proportionality.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Compliance risk
Compliance risk is the risk resulting from breaching laws, internal regulations and market standards in the processes functioning within the Bank. Compliance risk can lead to criminal or administrative sanctions, material financial losses, diminished reputation, reduced brand value, reduced development potential and inability to perform contracts, as well as limitation or loss of the ability to conduct business activities.
There is a separate unit for compliance matters functioning within the Bank , the Compliance Department, organisationally and operationally independent and subordinated directly to the President of the Management Board. Compliance Department is the key element of ensuring compliance within the Bank.
The Bank ensures compliance through application of suitable control mechanisms and compliance risk management process coordinated by the Compliance Department. Within the control function, the Compliance Department designs and supervises the implementation of control mechanisms with the aim to ensure compliance with law, internal regulations and market standards. The Compliance Department autonomously applies some of such control mechanism and performs independent monitoring of their compliance by other organizational units of the Bank, as well as reports the results of this monitoring. The compliance risk management process includes the following stages: identification, assessment, control, monitoring and reporting of the compliance risk level.
Within the control function, the Compliance Department ensures compliance, in particular through:
- current vertical verification on a continuous basis within risk-based approach on selected processes operating at the Bank (ex-ante activities),
- vertical testing, including monitoring of adherence to selected on risk-based approach control mechanisms, performed in the case of completed activities within selected processes functioning at the Bank (ex-post activities),
within the scope specified in the Regulations of functioning of the Compliance Department at Bank Pekao S.A.
As part of compliance with laws, internal regulations and market standards each employee of the Bank is obliged to apply appropriate control mechanisms and to perform independent monitoring of adherence to control mechanisms , within the scope of duties assigned to him/her.
The assumptions of the compliance risk management process were defined in developed by the Management Board and approved by the Supervisory Board, the Compliance Policy of Bank Pekao S.A. and Regulations of functioning of the Compliance Department at Bank Pekao S.A. There are following key elements supporting compliance risk management process:
- supervision of the Supervisory Board and responsibility of the Management Board for the effective management of compliance risk and observance of the Compliance Policy of Bank Pekao S.A.,
- responsibility of the Bank’s employees for ensuring compliance within the scope of their duties,
- properly defined organizational structure, including appropriate location of the Compliance Department,
- internal regulations on compliance matters,
- training,
- constant cooperation between the Compliance Department, and the Internal Audit Department and other internal control system units.
The reports on performance of tasks by Compliance Department together with the level of assessed compliance risk are presented to the Management Board and Supervisory Board. The oversight of compliance risk related to the activities of subsidiaries is performed in the Bank.
Implementation and application of the compliance risk management standards are key factors in creating the enterprise value, reinforcing and protecting the Bank’s reputation, and winning public trust in the Bank’s activities and its standing.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
7.3 Capital adequacy
Bank Pekao S.A. Group
Capital ratios are the basic measure applied for the measurement of capital adequacy according to Regulation of the European Parliament and of the Council (EU) No 575/2013 of June 26, 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012, which entered into force since January 1, 2014 together with further amendments, as well as Commission Implementing Regulations or Delegated Regulations (EU) (CRR Regulation).
Capital ratios, capital requirements and own funds have been calculated in accordance with the above mentioned CRR Regulation using national options defined in article 171a of The Banking Act, Act of 5 August 2015 on macro-prudential supervision over financial system and crisis management in financial system (Act on macro-prudential supervision), as well as regulations of minister in charge of the finance institutions.
According to law, Bank Pekao S.A. Group and Bank Pekao S.A. are required to maintain minimal values of capital ratios resulting from Pillar I level (CRR Regulation), capital requirement of Pillar II resulting from The Banking Act and combined buffer requirement resulting from Act on macro-prudential supervision.
Minimal value of capital ratios on Pillar I level are:
- Total capital ratio (TCR) in amount of 8%,
- Tier I capital ratio (T1) in amount of 6%,
- Common Equity Tier I capital ratio (CET 1) in amount of 4.5%.
Combined buffer requirement as at 31 December 2024 consists of:
- Capital conservation buffer in amount of 2.50%,
- Countercyclical capital buffer in amount of 0.03% 1 for Bank Pekao S.A. Group and for Bank Pekao S.A.,
- Other systemically important institution buffer in amount of 1.00%,
- Systemic risk buffer in amount of 0.00% 2 .
On Pillar II, Bank Pekao S.A. and Bank Pekao S.A. Group have no additional capital requirement (P2R).
Together, Bank Pekao S.A. Group and Bank Pekao S.A. are obliged to maintain:
- Total capital ratio (TCR) in amount of 11.53%,
- Capital ratio Tier I (T1) in amount of 9.53%,
- Common Equity Tier (CET 1) in amount of 8.03%.
The capital ratios of Bank Pekao S.A. Group and Bank Pekao S.A. were significantly above the minimum required by the law.
1 Countercyclical capital buffer was calculated as of December 31, 2024 at the level 0,0326% for Bank Pekao S.A. and 0,0335% for Bank Pekao S.A. Group.
2 According to the Regulation of the Minister of Finance, the systemic risk buffer was abolished on March 19, 2020. The buffer value applicable until that date was 3% of the total risk exposure amount for all exposures located only in the territory of the Republic of Poland.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Bank Pekao S.A. Group
As of 31, December, 2024 Bank Pekao S.A. Group total capital ratio amounted to 16.1% and common equity Tier I ratio amounted to 14.9%.
The table below presents the basic information concerning Bank Pekao S.A. Group capital adequacy as of 31 December, 2024 and 31 December, 2023.
CAPITAL REQUIREMENT
( mln PLN)
31.12.2024
31.12.2023 ( *)
Credit Risk
11,166
10,336
Market Risk
93
109
Counterparty credit risk including CVA
150
154
Operational risk
2,049
1,678
Total capital requirement
13,458
12,277
OWN FUNDS (PLN mln)
Common Equity Tier I Capital
25,061
24,368
Tier II Capital
2,073
2,434
Own funds for total capital ratio
27,134
26,802
Common Equity Tier I Capital ratio (%)
14.9%
15,9%
Total capital ratio (%)
16.1%
17,5%
(*) Data for December 31, 2023 have been recalculated taking into account the retrospective recognition of part of the profit for 2023, in accordance with the EBA position expressed in Q&A 2018_3822 and Q&A 2018_4085.
Total Capital Ratio of Pekao S.A. Group as at the end of December 2024 was lower by 1.4 p.p. compared to the end of December 2023, mainly due increase of total capital requirement by 9.6%. Common equity Tier 1 Capital Ratio of Bank Pekao S.A. Group as at the end of December 2024 was lower by 1.0 p.p. compared to the end of December 2023.
Decrease of Tier II Capital at the end of December 2024 compared to the end of December 2023 results from amortization of subordinated bonds A series and B series (during final 5 years of maturity of the instrument).
Bank Pekao S.A.
As of 31 December, 2024 Bank total capital ratio amounted to 18.7% and common equity Tier I ratio amounted to 17.3%.
The table below presents the basic information concerning the Bank capital adequacy as of 31 December, 2024 and 31 December, 2023.
CAPITAL REQUIREMENT
( mln PLN)
31.12.2024
31.12.2023 ( *)
Credit Risk
9,692
8,976
Market Risk
93
103
Counterparty credit risk including CVA
150
154
Operational risk
1,887
1,539
Total capital requirement
11,822
10,772
OWN FUNDS (mln PLN)
Common Equity Tier I Capital
25,515
24,606
Tier II Capital
2,073
2,434
Own funds for total capital ratio
27,588
27,040
Common Equity Tier I Capital ratio (%)
17,3%
18,3%
Total capital ratio (%)
18,7%
20,1%
(*) Data for December 31, 2023 have been recalculated taking into account the retrospective recognition of part of the profit for 2023, in accordance with the EBA position expressed in Q&A 2018_3822 and Q&A 2018_4085.
Total Capital Ratio of the Bank as at the end of December 2024 was lower by 1.4 p.p. compared to the end of December 2023, mainly due increase of total capital requirement by 9.7%. Common equity Tier 1 Capital Ratio of Bank as at the end of December 2024 was lower by 1.0 p.p. compared to the end of December 2023.
Decrease of Tier II Capital at the end of December 2024 compared to the end of December 2023 results from amortization of subordinated bonds A series and B series (during final 5 years of maturity of the instrument).
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
7.4 Bank Pekao S.A. on the Polish banking market
Bank Pekao S.A. is a universal commercial bank offering all financial services available in Poland for individual and institutional clients. A wide range of products, innovative solutions and individual approach ensure comprehensive financial support for clients and an integrated customer service model is a guarantee of the highest quality of services and optimal adjustment to changing customer needs. Since 2017, Bank Pekao S.A. is part of the PZU S.A. capital group, the largest financial institution in Central and Eastern Europe.
A wide product offer, innovative solutions and individual approach provide comprehensive financial service to clients and the integrated customer service model provides the highest quality of services and their optimal adaptation to changing needs. The Bank has measurable advantages that allow it to compete effectively on the market and strengthen its market position in the strategic areas of the Bank's operations. The Bank offers competitive products and services on the Polish market, and high level of customer service and a well-developed distribution network.
BUSINESS MODEL
The Bank’s business model is based on customer segmentation with the following groups of customers:
• RETAIL BANKING AND PRIVATE BANKING – serving individual clients, including affluent private banking clients and micro enterprises. Private banking clients are offered investment advisory through private banking centers and remote channels, while all individual clients and micro-enterprises are served through a wide network of branches and partner outlets supported by market-leading remote service channels, including digital channels,
• ENTERPRISE BANKING – providing financial services to clients from small and medium-sized enterprises sector that are served by relationship managers with the support of product specialists. The service is carried out in specialized Business Customer Centers, Corporate Centeres and universal retail branches. Customers are offered with products and services tailored to their individual needs based on solutions proven in corporate banking and adapted to the needs of the enterprise segment,
• CORPORATE AND INVESTMENT BANKING – providing financial services to large enterprises (segmentation by revenues of companies), public sector entities, financial institutions and entities from the commercial real estate financing sector. Corporate and investment banking clients are served by relationship managers with the support of product specialists.
Distribution channels
The Bank offers to its clients a broad distribution network with ATMs and outlets conveniently located throughout Poland as well as a professional call center and a competitive online and mobile banking platform for individual, corporate and micro- enterprises.
31.12.2024
31.12.2023
Total number of outlets
573
574
own outlets
478
493
partner branches
95
81
Total number of own ATMs
1,314
1,306
The number of accounts
At the end of December 2024, the Bank maintained 8,705.7 thousand PLN denominated current accounts, 346.2 thousand mortgage loan accounts and 574.7 thousand “Pożyczka Ekspresowa” (Express Loan) accounts.
(in thousand)
31.12.2024
31.12.2023
Total number of PLN current accounts (*)
8,705.7
7,977.7
of which packages
6,013.0
5,665.4
Number of mortgage loans accounts (**)
346.2
366.3
of which PLN mortgage loans accounts
330.8
343.8
Number of Pożyczka Ekspresowa loan accounts (***)
574.7
583.8
(*) Number of accounts including accounts of prepaid cards.
(**) Retail customers accounts.
(***) Pożyczka Ekspresowa, Pożyczka Ekspresowa Biznes.
The data presented according to the business model based on the managerial model in which the main criterion for dividing the Group's reporting is the classification of the client depending on his profile and service model.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
7.4.1 Retail banking and private banking
Strategy - The „Customer” pillar
We are intensively developing digital channels as well as quick and convenient service processes. We seek to enable retail clients to handle almost any matter online. The digitization rate of nearly 100% is one of the key strategic aspirations.
The PeoPay mobile application becomes the main channel of contact with the client. We plan to make even greater use of advanced data analytics and modern sales support tools in order to personalize the offer. improve service quality and increase the tendency to recommend our services. The key measure of success that we strive for is a leap advance in customer satisfaction rankings.
Development of electronic and mobile banking
In the 2024, the number of active mobile banking customers increased by 295 thousand to 3.4 million, exceeding the target set in the strategy for the end of 2024 (3.2 million). It was +9% higher than a year ago and +24% higher than two years ago. The number of active mobile customers using the PeoPay application increased by 327 thousand to 3.2 million and was +11% higher than a year ago and +31% higher than two years ago.
(*) Unique user actively using electronic banking is a user who logged in to the system and the mobile service m.pekao24.pl. at least once during the last quarter (in case of using different mobile channels the client is counted only once).
(**) Unique user PeoPay application who logged in to the system PeoPay at least once during the last quarter.
In the 2024, the number of business customers actively using electronic banking increased by 7.0 thousand to 251 thousand. The number of active customers of mobile banking increased by 28 thousand to the level 172 thousand.
In 2024, we introduced the following in PeoPay and Pekao24 electronic banking:
New functionalities of PeoPay and Pekao24 applications:
- Skarbonka account, which supports saving for a selected purpose,
- presentation of customer insurance: PZU travel insurance, property insurance for Mortgage Loan (PZU), life insurance for Mortgage Loan (PZU), Credit Card with Żubr,
- new discount programme “Okazje z Żubrem” with attractive promotions and discounts,
- Miles & More programme registrations.
PeoPay and P24 process improvements:
- addition of geolocation in the parking payment service,
- public transport tickets available before logging in,
- improvements in payments and transfers: BLIK transfer request in PeoPay, possibility to send transfer confirmation directly to the e-mail indicated by the customer, “Make another transfer” function, display of transfer cost information,
- new and more functional chat and the presentation of customer advisor data,
Development of functionalities for companies in PeoPay and Pekao24:
- making credit products available to the business customer,
- making it easier to open a business with an account from within PeoPay,
- bank statements in JPK format, for business customers.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Options to increase security:
- PeoPay activation security - additional threat information content,
- two-factor logging into the Pekao24 service using the PeoPay app,
- the ability for clients to block the conclusion of credit agreements on the Pekao24 service and the PeoPay app and when entering into a relationship with the bank when opening an account,
- ‘Panic Button’ - one place to block channels and cards in a stressful situation,
- handling of PESEL number disclaimers in processes.
PeoPay Kids application development and Parent Panel:
- new seasons of educational games in the PeoPay KIDS app,
- expansion of the MC Debit FX card images available for teens 13+ to include the passion categories sports and music,
- expansion of the Parent Panel functions in terms of consents and declarations, changes to transaction limits, blocking access channels, changing card limits and managing access to teenager 13+ accounts.
Strategy - The „Growth” pillar
We strive for business growth in the most profitable market segments product groups and areas of untapped potential, which will result in improved profitability. i.e. consumer finance and in the micro-enterprises segment. We plan to acquire over 400 thousand individual customers every year and increase its market share in cash loans. Moreover we will seek to rejuvenate the demographic structure of the retail customer base. The goal is to acquire over 600 thousand customers under 26 years of age by 2024.
We also focus on digital growth in investment products . We are also strengthening business synergies with the PZU Group, which will result in an increase in sales of insurance products and a twofold increase in the gross written premium by 2024.
Number of clients and accounts
In 2024, we opened 572 thousand accounts for individual customers, maintaining high acquisition results and consolidating our position as the leader in the growth of the number of net accounts in Poland with a result of +338 thousand accounts, an increase of 6% compared to the record-breaking 2023.
Maintaining high sales of accounts in 2024 was influenced by the attractive offer of the “Konto Przekorzystne” with a gold card and a promotional, high interest rate on savings on the “Konto Oszczędnościowe” and the promotion among parents of opening the first account for a child as part of campaigns such as: promoting the submission of 800+ applications, Children's Day, "Back to school" or the Christmas offer.
In 2024, we conducted a marketing campaign on internet portals and in social media supporting the sale of the “Konto Przekorzystne” with a “Konto Oszczędnościowe and the PeoPay application "Open up to PeoPay". The campaign was supported by the promotion of accounts opened on a selfie with a bonus of PLN 200. Thanks to the marketing activities carried out, almost every third new account was created in the online process (using the selfie verification method and AIS - identity verification by logging in to another bank).
In 2024, we opened approximately 190 thousand accounts for young clients up to 26 years, which constituted 33% of total new account sales.
In 2024, we opened a record number of 36.5 thousand new Świat Premium accounts dedicated to affluent clients who deposit funds exceeding PLN 200 thousand in savings and investment products, i.e. an increase of +17% compared to 2023, of which as many as 22 thousand accounts were opened for completely new clients acquired from the market.
In 2024, we made available to clients in Pekao24 and the PeoPay application a new product "Skarbonka", which supports clients in regular saving for a selected and specified goal, time and amount necessary to achieve it, and a “Skarbonka” for teenagers (13-17 years old) was also implemented.
In 2024, we introduced #Zrzutki – a request for a BLIK transfer, which makes it easier and faster to settle accounts between friends. The money is immediately transferred to the account of the person who sends the request. Settlements can be made between customers of banks that share Zrzutka.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
We actively promoted the sale of cards and the PeoPay application for young customers with new images related to passion, sports and music, as well as gaming images, in 2024 we issued over 105 thousand such cards. In the Mastercard Bezcenne Chwile program, a special catalog of prizes and a promotion for signing up to the program with a card with a music, sports and gaming image was prepared, thanks to which realizing passions, goals and dreams with the Bank becomes easier.
In the Pekao24 service and the PeoPay application, as part of the "Okazje z Żubrem" loyalty program for new and existing customers of the Bank, actively using cards, we have prepared an extended package of benefits, within which customers gain access to opportunities in hundreds of popular online stores and in retail and service points.
We have extended the special offer for Ukrainian citizens until the end of 2025, under which maintaining the “Konto Przekorzystne”, using the account card and cash withdrawals from all ATMs in Poland, as well as outgoing and incoming transfers from banks in Ukraine are free of charge.
Payment cards
In 2024, we continued our activities supporting the sale of the “Karta Kredytowa z Żubrem”. We launched the campaign "„Zyskaj więcej niż się spodziewasz z Kartą Kredytową z Żubrem” promoting the unique benefits offered by the “Karta Kredytowa z Żubrem”. As part of the promotion, new customers who do not yet have a card at the Bank can benefit from an additional PLN 300 bonus to start with. At the end of 2024, over 200 thousand customers had already used the “Karta Kredytowa z Żubrem”. From the first half of 2024, new customers can receive the “Karta Kredytowa z Żubrem”by submitting an online application via PeoPay or Pekao24.
As part of the cooperation with LOT Polish Airlines and Miles & More, our customers can collect miles for transactions made with the “Karta Krdytowa z Żubrem”, and then exchange them, e.g. for airline tickets, air travel class upgrades, hotel reservations, car rentals and other prizes. To participate in the program, simply add the card to Miles & More in the PeoPay mobile application or Pekao24 online banking.
In 2024, we launched a unique promotion for the “Karta Krdytowa z Żubrem”, with the “Konto Świat Premium” called " Podróżuj z klasą - Promocja Miles & More w Świecie Premium Banku Pekao S.A.”. As part of this promotion, Premium customers can receive 10,000 miles in the Miles & More program, which can be exchanged, among others, for a round-trip flight to one of the cities in Europe. The promotion is addressed to new customers who did not have a Bank credit card on the day the promotion started.
The use of Mastercard Credit Cards was supported in the third quarter of 2024 by an additional promotion, in which customers could collect PLN 200 in points in the “Bezcenne Chwile” program after signing up to the program and meeting the transactional condition.
Business customers who have signed a MOTO Biznes credit card agreement until 30 September, 2024 can benefit from a promotional interest rate on the credit limit of 9.99% (compared to the standard 18.99%) and free transfers via PekaoBiznes24/Pekao24 dla Firm electronic banking from a credit card to a business account in the Bank until the end of March 2025.
At the end of the third quarter of 2024, we made the so-called Digital First service available for debit cards, thanks to which the customer can immediately add the card to their digital wallet in Google, Apple Pay or Garmin Pay after ordering it and start paying with it, without having to have a plastic card.
Lending products
In 2024, we achieved very good sales results for cash loans, in line with the assumed goals. The value of cash loans granted increased to PLN 6.3 billion, in terms of net volumes, i.e. by +22.4% compared to 2023. The gross value of signed agreements increased to PLN 7.3 billion by +29.0% y/y, achieving higher dynamics compared to the result of the entire banking sector. The sales results achieved allowed us to increase the value of the loan portfolio by +10% compared to December 2023.
Our activities were supported by an attractive product offer, development and promotion of remote sales processes and increasing the number of offers available "with a click", advertising campaigns conducted on the Internet and the Bank's internal channels and in the national media under the slogan „Weź wygodną pożyczkę gdzie chcesz i na co chcesz”.
Electronic sales of cash loans in 2024 reached a record result of PLN 4.8 billion, an increase of +26.6% compared to 2023. In 2024, we systematically increased the share of loans concluded in Pekao24 services, the PeoPay mobile application and via the Bank's online, obtaining in the fourth quarter of 2024, a result of 88% of agreements concluded in electronic processes - above the target assumed in the Bank's strategy for 2021-2024, while achieving a more than 4-fold increase in the volume of loans concluded via remote channels within the strategy horizon.
In the third quarter of 2024, we enabled customers who established relationships with the Bank using remote authorization to receive a cash loan completely remotely.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
By developing electronic sales processes, we also take care of the safety and comfort of our customers. We are introducing solutions that limit the scale of fraud in the field of "one-click" credit transactions, including, among others. through anti-fraud verifications, extending the order for the execution of the transaction so that the client can withdraw from the action taken, and also through the possibility of blocking the execution of credit processes in online and mobile banking by the client.
As the only Bank in Poland, we continue to provide loans to finance tuition fees for paid medical studies. At the beginning of each semester, students can apply for a loan to benefit from interest subsidies, a loan guarantee provided by BGK, as well as full or partial cancellation. To date, over 4.2 thousand customers have used this loan for a total amount of over PLN 900 million, of which we have already released almost PLN 300 million of semester loan tranches.
In 2024, we concluded an agreement with the Terg S.A. Capital Group (owner of the Media Expert brand chain of stores) regarding intermediation in offering installment loans in stationary and online stores.
Mortgage loans
In 2024, the Bank achieved very good sales results for mortgage loans, achieving the assumed goals and achieving a record result in mortgage sales, higher compared to the record-breaking 2023 so far, despite the end of accepting applications for the “Safe Credit 2%” under the government program "Pierwsze Mieszkanie", which were the driving force of sales in the second half of 2023.
In 2024, sales of mortgage loans amounted to PLN 11.3 billion, up by +8.7% compared to 2023. Sales of standard housing loans (excluding loans under the "Safe Credit 2%" program) increased nearly 2.5 times year-on-year.
The results achieved allowed the Bank to strengthen its market position and in 2024 the Bank took 3 rd place in terms of sales of mortgage loans in the banking sector and, in accordance with the assumed goal in the 2021 - 2024 strategy, it is in the TOP3 in the banking sector.
In 2024, we won 2 nd place in the mortgage loan category in the Złoty Bankier 2024 ranking organized by Bankier.pl and Puls Biznesu.
We have been constantly updating and adapting our mortgage loan offer to changing market conditions and needs, consistently maintaining it in the TOP3 offers on the market.
We have expanded the offer with preferential terms for loans above PLN 500 thousand and with the EKO Mortgage Loan, which supports ecological solutions.
We have improved the processes of granting and servicing loans by expanding the availability of remote instructions (eDyspozycja) and including the Family 800+ Program in the creditworthiness assessment. Customers can submit an application for a mortgage loan in electronic form Pekao24 online banking and in the PeoPay mobile application, and if necessary, use the help of a specialized contact center employee.
In May, we made it possible for borrowers to submit applications to suspend mortgage loan repayments under the so-called statutory credit holidays and we have implemented new solutions to support borrowers in financial difficulties in accordance with statutory changes.
Borrowers who were affected by the flood that occurred in 2024 or as a result of its direct consequences, we have offered an Assistance Package, which allows for the suspension of installment repayments for up to 3 months, as well as the possibility of submitting applications for support under the Borrower Support Fund (from the first day after the Flood Act comes into force).
The offer of settlements introduced by the Bank for borrowers with active housing loans denominated in CHF, which are almost entirely in the Bank's portfolio as a result of their acquisition as a result of the merger of part of Bank BPH SA in 2007, has met with great interest and acceptance on the part of customers. We have already prepared a settlement offer for over 84% of borrowers, of which we have already signed 7.4 thousand settlements.
We have transferred another part of mortgage loan receivables to Pekao Bank Hipoteczny. The total number of loans transferred so far is over 13.5 thousand with a value of over PLN 2.7 billion.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Business clients loans
In 2024, new sales of financing for business customers in total (loans, leasing and factoring) amounted to PLN 2,9 billion and were higher by +24% y/y. The growth in new sales of bank loans in the business segment was higher by +14% y/y to PLN 1,3 billion and was supported by attractive terms of the new offer related to the possibility of repaying liabilities from another bank, made available for the development of the offer of loans with pre-examined creditworthiness for existing customers, who can easily and quickly use the promised limits for a current account credit, loan or credit card. Changes in the security policy and simplification of the credit process, through the implementation of optimization and digitization works carried out in the business customer segment, translate into a simplified, fast credit process also available in remote channels.
Thanks to the improvement of the remote process, micro-entrepreneurs/sole proprietorships could apply for financing. Bank customers who had been running a sole proprietorship for at least two years could remotely apply for a credit or loan in electronic banking for an amount of up to PLN 1 million.
For existing customers of the Bank, the PreApproved offer was developed, enabling an easy and quick process to use the promised limits for a current account credit, loan or credit card.
Development in the area of insurance products
In 2024, in the bancassurance area, we conducted marketing and promotional activities that contributed to sales growth and high dynamics y/y.
The collected premium from protection insurance in 2024 was higher by +78% y/y, after taking into account investment products, the dynamics amounted to +67% y/y. The number of motor insurance policies sold in 2024 was almost 3 times higher than in 2023, and the number of travel policies was 79% higher y/y.
The share of the number of mortgage loans sold with insurance (for which insurance could be offered) remained at a stable high level of 96% in 2024, and in terms of the number of cash loans it was 37%.
In 2024, in the assurbanking area, we launched the sale of banking products in a new distribution channel - PZU Exclusive Agents.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Deposit, brokering activity and sale of investment products
At the end of 2024, the total value of deposits held by individual customers (including Private Banking customers) and business customers amounted to PLN 164.1 billion, an increase of +PLN 19.0 billion (+13.1%) compared to the end of 2023 and +PLN 4.0 billion, i.e. +2.5% compared to September 2024.
Thanks to attractive interest rates (7.0% for 5 months) on Savings Accounts and Premium Savings Accounts offered tonewcustomers, we opened over 359 thousand new savings accounts, which is an increase of +24% compared to 2023.
Mój Skarb savings accounts for children up to 18 years of age enjoyed great interest among individual customers, in 2024 we opened over 100 thousand new accounts, +8% more than in the previous year.
In 2024, the Bank expanded its offer of savings products with a new product called Skarbonki, on which customers can save via the PeoPay application or Pekao24 online banking for specific purposes, allocating funds to separate dedicated accounts. The Skarbonki are available both for independent opening and maintenance by children, as well as for customers over 18 years of age. At the end of December 2024, customers had almost 50 thousand open Skarbonki.
In 2024, we made available to customers aged 18 to 26 two cyclically offered promotional deposits "Lokatę dla młodych" and "Lokatę urodzinową". The deposits were supported by marketing activities strengthening the Bank's image.
In 2024, we offered individual customers attractively interest-bearing currency deposits in USD and EUR. In the case of investing high amounts of savings in the above currencies, customers had the opportunity to negotiate interest rates on these deposits.
At the end of December 2024, the Biuro Maklerskie Pekao maintained a total of over 202 thousand investment accounts and 120 thousand accounts related to the handling of retail treasury bonds, i.e. 20% more compared to the end of December 2023. The number of accounts with active access to services via remote channels was over 279.9 thousand, which is almost a 30% increase y/y.
Direct service was provided within a nationwide network of 372 brokerage offices in 339 locations. The value of assets of the Biuro Maklerskie Pekao as of December 31, 2024 amounted to PLN 61.3 billion compared to PLN 45.3 billion as of 31 December, 2023, the increase in the Brokerage House assets amounted to PLN 16 billion, i.e. 35% y/y.
To clients who accept investing part of their savings in investment products, we offered attractive solutions combining the advantages of both investment and deposit, Deposit with Fund and Investment Deposit. In 2024, we achieved the highest net sales of investment products in history, amounting to over PLN 17 billion, +52% more compared to 2023.
In the area of investment products in 2024, we introduced over 20 different offers of structured products with capital protection available in 3 currencies PLN, EUR and USD, in the case of which the final result depended either on the price of shares of selected, global companies or on the behavior of exchange rates. A very important element supporting the sale of investment products in 2024 was the continuation of the offer of preferential price conditions for customers purchasing such products, in particular via the PeoPay application or Pekao24 online banking.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
7.4.2 Enterprise banking
Enterprise Banking consists of two segments: Small and Medium Enterprises (SME) and Medium Enterprises (MID) segments.
In 2024 we focused on the automation and digitization of the credit process and the development of electronic banking functionalities enabling customer self-service.
Strategy - The „Customer” pillar
We put the customer and his needs at the center of our activities. intensively develop digital channels and fast and convenient service processes. To an even greater extent, we will use advanced data analytics and modern CRM tools to support sales, which will allow us to better adjust the offer improve the quality of service and increase the tendency to recommend our services.
Lending activities and customer financing
In 2024, the value of new loans sold (excluding renewals) in the SME segment reached PLN 6.6 billion, maintaining the high level from previous quarters and 2023. In the MID segment, the value of new loans sold amounted to PLN 13.3 billion.
In 2024, the most important activities in the credit offer in the area of corporate banking include:
- signing an agreement with BGK and launching three portfolio guarantee programs: Biznesmax plus, Ekomax and BGK Investmax. These programs are linked to BGK guarantees for corporate loans and include, among others: green financing, innovation and digital transformation sectors, and also include a component of interest and capital subsidies for companies,
- introduction of preferential loans from the Agricultural Restructuring and Modernisation Agency (ARiMR) for investments in agriculture and inland fisheries to the offer,
- signing an agreement with KUKE for a new guarantee programme enabling financing of investments in green transformation,
- providing clients with the possibility of applying for a pre-settlement limit, via an online platform, which allows entrepreneurs to conclude transactions hedging against the risk resulting from exchange rate fluctuations with a period of up to six months without the need to block funds, up to a total amount of commitment of PLN 300 thousand,
- providing clients with a platform dedicated to EU funds "Fundusze z Żubrem", which aims to support Polish entrepreneurs in obtaining European funds for the development of their business. On the portal, we have also placed a comprehensive guide to funds prepared by the Bank "Compendium of knowledge about European funds", which contains detailed information on financing programmes, application rules and key challenges that entrepreneurs may face,
Customer acquisition
In 2024, we maintained a high level of new customer acquisition: in the SME segment, we acquired over 3 thousand customers, and in the MID segment, approximately 900 new customers.
Self-Service Zone in PekaoBiznes24
We have provided our clients with a new process for applying and purchasing closed cash services, we have introduced improvements in the process of managing corporate cards, including online presentation of card statuses, online management of card limits, automation of the card blocking process. We have introduced further improvements in the general disposition, opening sub-accounts and in the "enterprise declaration" application.
We have enabled the most active clients to use the collective sending, cancellation and signing of many applications at the same time. We have introduced a new version of applications for treasury products, as well as a new certificate of maintaining an account.
In 2024, 84% of clients from the SME, MID and Corporate segments used the self-service zone in digital channels.
PekaoBiznes24
In 2024, in the PekaoBiznes24 system, we have made available to customers:
- the ability to automatically download electronic confirmations of balances at the end of the year in the JPK format,
- information on a block due to the seizure of an account at the request of an enforcement body,
- presentation of the status of a foreign transfer in the SWIFT GPI format,
- the ability to make currency transfers extended with an online accounting function on days off.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
In the second half of 2024, we conducted a series of meetings with clients in the form of webinars devoted to education in the area of cybersecurity.
The number of corporate clients using the direct integration of their financial and accounting systems with the Bank via the PekaoConnect service has increased significantly.
PeoBIZ
We have completed the migration of corporate clients to the new PeoBiz mobile application, which is currently used by approximately 20 thousand corporate clients of the Bank. We have introduced a number of changes in the new application to facilitate the use of the application. We have provided clients with, among others: a new presentation of the summary of account balances and detailed information about the balances on individual accounts, a change of the application mode setting to "light- dark", a change of the application language (Polish-English) and we have expanded the scope of functionality of transfers to the phone.
ESG
In the Corporate Banking Division, we have established an ESG support team that supports clients in the process of implementing the principles of sustainable development, energy transformation, and provides advice and consultation on the Bank's product offering.
In addition, we have made available on the Bank's website a free ESG Knowledge Compendium - a practical guide that explains key definitions and regulations in the field of ESG, presents the principles of implementing the ESG strategy, includes monitoring and reporting principles, financing methods and information on the scope of the Bank's support that can be obtained in connection with the ESG transformation.
In addition, we offer the Bank's corporate clients preferential terms of using the carbon footprint calculator. The solution will help adapt to new reporting obligations and business requirements in the ESG area.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
7.4.3 Corporate and investment banking
The Corporate Banking includes corporate segments and significant capital groups (the so-called large corporations), public sector clients, financial institutions as well as commercial real estate and specialized financing. The Pekao Group is a leader in these segments. It has a competitive advantage resulting from experience, unique staff, specialized knowledge and processes and the potential to co-finance large projects based on a very strong liquidity and capital position. The Bank provides both the comprehensive services of a universal bank and the services in such areas as leasing, factoring, investment advisory services, advisory in M&A as well as highly advanced treasury, capital market products and custody services. A wide range of products and services, innovative solutions, customised approach and the comprehensive financial services for the largest enterprises, institutions and public sector units are appreciated by clients and decide about the strength of corporate banking of Bank Pekao S.A.
CLIENTS
At the end of 2024 we served nearly 6.8 thousand clients. We cooperate with the largest corporations. We provide support in terms of substantive, operational and financial development of our clients both in everyday business as well as in large strategic projects.
Strategy
Since 2021, we have been implementing a strategy providing for effective volume growth. using competitive advantages such as: in-depth sector expertise, specialist financing knowledge as well as the growing digitalization of processes. According to this Strategy, we want to maintain our leadership position and a high market share in revenues.
Plans and ambitions of Corporate Banking rest on 4 pillars:
Growth:
• increase of x-sell.
• high market share in the segment of large corporations.
Effectiveness:
• digitalisation and automation of processes.
• promotion of self-service in digital channels.
Clients:
• specialist, customised service of complex transactions.
• support in financing public sector projects.
Responsibility:
• responsible capital management.
• support of sustainable economic development.
An integral part of our business strategy is the adopted ESG strategy. Pursuing this strategy we want to engage in financing sustainable projects. support the energy transformation of our clients and their transition to a low-carbon economy. We want to achieve these goals. among other things. by financing the development of renewable energy sources (RES), entities operating in the sectors of new technologies, as well as by actively participating in the government and EU programs aimed at reconstruction and climate transformation.
Our approach to growth is focused on the continuous development of modern digital tools to support the activities of analysts, relationship managers and clients. In business areas, we engage in projects related to a responsible approach to the way in which business activity is conducted. We also develop international banking and support the foreign expansion of our clients.
While strengthening our effectiveness we focus on increasing the level of robotization and automation of internal processes as well as solutions available to clients. We are also continuously expanding the scope of self-service operations in digital channels and we are implementing more products available to corporate clients for online purchase.
We are invariably building a customer-centric culture and we want to be the first choice bank for our clients. Therefore, we try to quickly and accurately recognize their needs. We provide advise based on our knowledge of client's profile, industry and segment. We try to increase the level of satisfaction of our clients with their interaction with the Bank.
Supporting sustainable economic development , we engage in private as well as in government and EU programs for economic recovery and climate transformation. An important area of our activity is also the cooperation with public sector entities, where, in addition to green investments and infrastructural projects, we are involved in financing socially responsible projects which have a positive impact upon the living standard of Poles.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
The fundamental of our business is responsible capital management. We do this relying on sector expertise, flexible and specialized product offer, unique competences in structured financing and extensive opportunities to operate on Polish and foreign financial markets. Such knowledge enables us to make rational and mature selection of clients and the most appropriate selection of products and transactions.
Cooperation with financial institutions and custody services
We hold a leadership position in serving domestic financial institutions, focusing on providing the highest quality services to insurance companies, investment funds, brokerage houses, financial sector infrastructure entities, cooperative banks as well as savings and credit unions. The range of services includes modern transactional banking products, clearing products, treasury products, custody services and services of a depository bank, as well as the access to the comprehensive offer of the Pekao Group entities addressed to this segment of clients.
In July and August 2024, we obtained financing for Pekao Leasing in the form of loans in the amount of EUR 250 million from the Council of Europe Development Bank and in the amount of EUR 150 million from the European Investment Bank. The proceeds from these loans will finance the investments and development of micro, small and medium-sized enterprises in Poland. A special support will be given to companies most vulnerable to the negative social and economic effects of the transformation: the companies from the regions exposed to risk resulting from high unemployment and the companies implementing green investments, including the ones that improve energy efficiency and the leasing of low-carbon means of transport. Bank Pekao acted as the arranger of the transaction and secured the financing from the Council of Europe Development Bank with a guarantee. The loan from the European Investment Bank was guaranteed by the PZU Group.
We are engaged in an extensive cooperation with banks from all over the world. With more than 1.3 thousand exchanged swift keys, direct or indirect access to major clearing systems, nostro accounts and maintaining loro accounts for a very large group of foreign banks – the Bank has the infrastructure to ensure efficient foreign settlements in 21 major currencies.
Transactional banking
In 2024, we introduced significant changes in the processes and procedures of products and services addressed to business clients (SME, MID and corporate clients) and we standardised their documentation. One of our key achievements in the area of relationships with business clients was the implementation of a simple and short bank account agreement with a modular structure (basic agreement). As a result, the client gains access to bank accounts and PekaoBiznes24 electronic banking as soon as the document is signed. Depending on the needs, the Entrepreneur can independently and quickly expand the range of services offered by applying for other functions in PekaoBiznes24. Such an agreement can be concluded both in a traditional paper form and electronically, using four different types of electronic signatures: qualified, trusted, personal e-card or e-banking user signatures.
In Pekao Biznes24, we enabled our clients to execute foreign currency transfers with online posting at weekends. The transfers entered and sent on Saturdays and Sundays between accounts held with Bank Pekao are posted in real time.
We have also made it possible to block debit and credit cards in real time.
In 2024, we introduced the possibility of opening accounts and performing non-cash and cash settlements in the Mexican peso (MXN) and Israeli shekel (ILS) currencies. We offer the attractive cut-off times for making payments in ILS and MXN, and we are one of the few banks in Poland which executes payments in these currencies in express mode.
In 2024, in the area of transactional banking:
- we recorded an increased number of domestic transfers by over +8% y/y (we maintain about 20% market share for domestic payments),
- we recorded an increased number of outgoing foreign transfers by +31% y/y and an increased number of incoming transfers by +8%.
Trade finance
In 2024, we consistently developed our range of trade finance products, which is confirmed by the rate of growth in this area. The amount of newly issued guarantees and sureties increased by 7% as compared to 2023 and the Bank's exposure in this respect, at the end of 2024, was by 11% higher than in the previous year. In the third quarter of 2024, the Bank provided its clients with a new tool for managing bank guarantee orders. The application, available through the Bank's online banking, will enhance the quality of the service provided and improve the experience of clients using this type of product. In 2024, t he Open Financing Platform (OFP), which supports products based on receivables purchase, allowed for financing more than 62 thousand invoices for the total amount of more than PLN 2.5 billion.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Cooperation with international clients
We support the expansion of Polish entrepreneurs on both European markets and in developing countries. We prepared comprehensive offers for short and long-term financing and the offers for hedging risk of international transactions. The Bank’s clients can take advantage of the package of the most beneficial financial solutions adjusted to the model of the conducted business activity.
We extended our offer for companies intending to finance their investments in green transformation. As a result of the signed agreement with the Export Credit Insurance Corporation (KUKE), the Bank's clients can benefit from a new guarantee program that will facilitate the financing of energy transition expenses and implementation of investment projects which will allow our economy to achieve climate neutrality.
In 2024, we concluded an agreement with the South Korea's largest bank: KB Kookmin Bank. As a result, a Korea Desk, dedicated to Korean clients, was established at the Bank, specialized in serving Korean companies operating in Poland and the ones intending to enter our market.
Investment finance, structured finance and commercial real estate
We offer our clients the services in the field of investment banking, structured finance and financing of commercial real estate projects, including financing of the construction of warehouses.
The key projects financed by the Bank in 2024 include:
- a syndicated loan in the amount of PLN 3,4 billion granted to the largest chemical concern in Poland. The Bank was the loan arranger,
- a syndicated loan in the amount of PLN 2,5 billion granted to a leading company from the pharmaceutical industry; the Bank was the loan arranger,
- a syndicated loan in the amount of PLN 1,8 billion granted to a leading company from the footwear industry. The Bank is the Security Agent,
- a syndicated loan granted to a leading retailer in Poland. The amount of the syndicated loan was PLN 1,3 billion. The Bank was the MLA,
- a syndicated loan for development of an enterprise from the paper industry. The syndicated loan amounted to EUR 270 million,
- an investment loan granted to a leading company from the energy industry for renewable energy sources. The amount of financing was PLN 1 billion. The Bank was the loan agent,
- an investment loan in the amount of PLN 741 million granted to a leading European producer of chargers for electric cars. The Bank was both the leader and agent of the consortium. At a later stage of this transaction, the Bank and the company will select the co-consortium partners,
- a working capital loan in the amount of PLN 500 million granted to a company operating in the leasing industry.
Issuance of debt securities
In 2024, the Bank participated in the issuance of non-treasury debt securities (of corporate entities, banks and municipal units) for the total amount of more than 52 billion zlotys, of which the following transactions deserve special attention:
- the issue of the Bank’s 6-year (6nc5) senior unsecured Eurobonds for the amount of EUR 500 million. The Bank acted as the Global Coordinator and Co-bookrunner,
- the issue of three series of Eurobonds (8- and 15-year) for the Polish Development Bank for the total amount of EUR 2,2 billion; the Bank acted as the co-arranger,
- the issue of 3-year and 6-year bonds for the total amount of 2 billion zlotys for one of the leading producers of electricity in Poland. The Bank acted as the arranger, dealer and coordinator of the issue. The bonds are linked to the sustainability indicators such as CO2 reductions and the increase of capacity in the installed renewable energy sources,
- the issue of 3-year bonds for the leasing company belonging to an international automotive concern for the amount of 1,5 billion zlotys; the Bank was the sole arranger and dealer,
- the issue of 7-year bonds for the amount of 1 billion zlotys for a leading producer of copper and silver; the Bank was the co-arranger and dealer,
- the issue of 5-year green bonds for the amount of 750 million zlotys for a company from the energy sector; the Bank was the co-arranger and dealer,
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
- the issue of 16 series of bonds denominated in PLN and EUR for Pekao Leasing for the total amount of PLN 8,35 billion and the issue of 36 series of bonds denominated in PLN and EUR for Pekao Faktoring for the total amount being equivalent of more than PLN 21,7 bilion. The Bank acted as the sole arranger and dealer in both transactions.
Comprehensive service of public sector finances
One of the elements of our strategy is to finance public sector and municipal projects. We are actively involved in activities related to building and developing Polish infrastructure, including the support for sustainable development of the economy and environmental protection. We render our services and we provide financing to self-government units, municipal companies, institutions of higher education as well as entities established as part of public-private partnership.
We cooperate with 11 out of 12 Polish metropolises (92% market share) and we provide ongoing budget support for five of them. We cooperate with every five municipality in Poland. We maintain business relationships with 75% of towns with county rights and we provide ongoing services to every fifth of them. We also cooperate with every fourth county (25%) and with more than a half of provinces (56%). We are a major bank for state universities – more than 50 of them use our services.
We are one of the two banks most frequently selected by local government units issuing bonds. In 2024, we provided financing in the form of bond issue for the city of Cracow in the amount of PLN 320 million, Lublin in the amount of PLN 220 million, Łódź in the PLN 274 million and Radom in the amount of PLN 80 million. We are the market leader in issuing bonds for municipal companies. An example of such financing is the agreement with the Wrocław Airport worth PLN 550 million.
In 2024, we also supported local government units by granting loans and credits to, among others: the City of Cracow in the amount of PLN 300 million, City of Łódź in the amount of PLN 200 million, City of Lublin in the amount of PLN 180 million, and City of Białystok in the amount of PLN 125 million..
The total financing provided by Bank Pekao to the public sector in 2024 amounted to PLN 3.7 billion.
We also granted an investment loan and took over the service and financing of the Gdańsk International Fair in a total amount of PLN 80 million.
Total financing provided by the Bank in 2024 for the public sector amounted to PLN 3.7 billion.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
7.5 Major areas of activities of the Group’s subsidiaries
7.5.1 Banking activity
Pekao Bank Hipoteczny S.A. – Pekao Bank Hipoteczny
Pekao Bank Hipoteczny (pekaobh.pl)
Pekao Bank Hipoteczny is a specialist bank, focusing on granting mortgage loans and servicing assets, using the issue of covered bonds to finance them. As part of the Group's cooperation, portfolios of mortgage loans and bonds of local government units (LGUs) are transferred to Pekao Bank Hipoteczny, which can serve as collateral for covered bonds issued by Pekao Bank Hipoteczny.
In 2024, Pekao Bank Hipoteczny continued transactions of acquiring and transferring mortgage receivables from Bank Pekao S.A. The transferred portfolio of mortgage receivables, for a total amount of PLN 869 million, included loans granted in PLN, which were intended to finance the housing needs of individuals. In 2024 was another year in which transfers of LGU bonds from Bank Pekao were also carried out. In accordance with the schedule of transfers of bonds of local government units in 2024, LGU bonds with a total value of PLN 153 million were acquired and transferred in 36 transactions.
The net value of the loan portfolio (including the local government bond portfolio) at the end of 2024 amounted to PLN 3,550 million. Loans granted to individual clients accounted for 74.2% of the portfolio, while loans granted to local government units and enterprises accounted for 17.7% and 8.1% of the loan portfolio, respectively.
In 2024, Pekao Bank Hipoteczny completed three issues of mortgage covered bonds and two issues of public covered bonds. The total value of liabilities under covered bonds as at 31 December, 2024 amounted to PLN 2,568 million. As part of the diversification of financing sources, Pekao Bank Hipoteczny issues bonds. The value of liabilities under issued bonds as at 31 December, 2024 amounted to PLN 573 million.
7.5.2 Assets management
Pekao Investment Management S.A.– Pekao IM
https://pekaotfi.pl/o-nas/pekao-investment-management
Pekao IM, in which the Bank holds 100% of shares, is the owner of Pekao Towarzystwo Funduszy Inwestycyjnych S.A. (Pekao TFI).
Pekao TFI is the longest-running investment fund company in Poland, offering clients modern financial products, providing the opportunity to invest on the Polish market and on global capital markets. Pekao TFI develops savings programs, including those offering the possibility of additional savings for retirement under the third voluntary pension pillar. Pekao TFI's offer also includes a portfolio management service and Employee Capital Plans (PPK). The company is in the PPK register, and its offer is also available through the portal: MojePPK.pl — oficjalny portal Pracowniczych Planów Kapitałowych PPK
As of 31 December, 2024, the net asset value of Pekao TFI investment funds (including PPK) amounted to PLN 32 billion and was higher by PLN 8 billion, i.e. 33% compared to the end of December 2023. The higher value of assets is influenced by the positive situation on the capital markets.
7.5.3 Leasing activity
Pekao Leasing Sp. z o.o. – Pekao Leasing
Pekao Leasing - Pekao Leasing Sp. z o.o
Pekao Leasing provides financial services supporting the sale and purchase of fixed assets, i.e. means of transport, machinery and equipment, as well as office properties - both through operational and financial leasing.
The company cooperates with Bank Pekao S.A. in the sale of leasing to clients who are also clients of the Bank. Pekao Leasing, under agreements with the European Investment Bank, the Council of Europe Development Bank or the European Bank for Reconstruction and Development, offers financing for small and medium-sized enterprises on preferential terms, including in particular for financing green assets or for supporting women's entrepreneurship. The company also cooperates with Bank Gospodarstwa Krajowego S.A. (BGK) offering financing for vehicles, machines and equipment with a BGK guarantee.
In 2024, Pekao Leasing concluded over 20 thousand new agreements. The value of assets leased by the Company was similar to the level from 2023 and amounted to PLN 7 billion, including: 54% were means of transport, 44% - machines and equipment, 1% - real estate, 1% - other.
As part of the diversification of financing sources, Pekao Leasing issues bonds. The value of liabilities arising from issued bonds as at 31 December 2024 amounted to PLN 7,491 million.
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Bank Pekao S.A.
7.5.4 Factoring activity
Pekao Faktoring Sp. z o.o. - Pekao Faktoring
Pekao Faktoring Sp. z o.o.
The company offers a full range of factoring services (including full and partial factoring), as well as services accompanying factoring, which include, among others, collecting information on the financial situation of debtors, collection, debt collection, accounting of settlements and ongoing monitoring of payment execution.
The company's offer is complemented by the settlement of mass transactions, financial advice and consulting in the selection of the method of financing the business, as well as granting credits and loans related to the factoring agreement.
Pekao Faktoring, in cooperation with the Bank, develops the range of services for clients and new sales channels for products and services. As part of this cooperation, a factoring service is offered to micro entrepreneurs - clients of the Bank, based on a fully automated decision-making process.
The company participates in the factoring limit repayment program with the support of Bank Gospodarstwa Krajowego S.A. (BGK) - using the guarantee of repayment of financing of partial and reverse factoring, granted under the public aid of the BGK Crisis Guarantee Fund. As part of the diversification of financing sources, Pekao Faktoring issues bonds. The value of liabilities from issued bonds as of 31 December, 2024 amounted to PLN 5,584 million.
Pekao Faktoring ranks 2nd on the Polish factoring market with almost 16.9% market share.
7.5.5 Transactional advisory
Pekao Investment Banking S.A. – Pekao IB
Pekao Investment Banking S.A. (pekaoib.pl)
Pekao IB provides highly specialized services for large and medium-sized enterprises and financial institutions. The scope of services provided by Pekao IB includes in particular brokerage services: accepting and transmitting orders to purchase or sell financial instruments, offering financial instruments, as well as consulting for enterprises in the field of capital structure, enterprise strategy or other issues related to such structure or strategy, as well as consulting and other services in the field of mergers, divisions and acquisitions of enterprises.
In 2024, Pekao IB acted as a co-leader of the book of demand in the transaction of the initial public offering on the Warsaw Stock Exchange, provided bond issue services for nine entities, and successfully closed two transactions of consulting in obtaining financing and a consulting project in connection with acquiring an investor. During this period, the Company began providing services in the field of sustainable development (ESG) consulting and conducted a number of transactions on the private and public capital market, as well as in the field of debt consulting with a plan to implement them in the coming period.
7.5.6 Other financial services
Centrum Kart S.A. - CK S.A.
Centrum Kart S.A. - O nas
Centrum Kart provides comprehensive services related to, among others, the management of payment card management systems, transaction authorization and card personalization, ensuring high quality of services with the growing complexity of business and technological environments and increasing transaction volume. The company mainly provides services for the Bank Pekao S.A. and, in cooperation with the Bank, implements projects aimed at expanding the Bank's product offer and transaction security.
In 2024, Centrum Kart carried out a number of projects implemented as part of cooperation with the Bank, including those aimed at introducing new card functionalities, modernizing ATMs - expanding the scope of services they support, or implementing support for additional functionalities for payment settlement. The company also began implementing new systems and processes in the area of card issuing and acceptance.
Krajowy Integrator Płatności S.A.– KIP
Szybkie przelewy i płatności online | Tpay
Bank Pekao S.A. owns shares constituting 38.33% of the shares of Krajowy Integrator Płatności S.A., the owner of the fast online payment system Tpay (formerly Transferuj.pl).
The company has the status of a national payment institution and is supervised by the Polish Financial Supervision Authority. KIP's activity consists in intermediating the transfer of payments between the payer and the recipient.
In 2024, the Company continued to increase the scale of its operations in the area of online and mobile payments. It sought new areas for the development of services, acquired new customers and developed cooperation with existing ones, also within the framework of a strategic partnership with Bank Pekao S.A. As a result of the cooperation, the Bank's customers receive access to modern and secure payment services, while the Company's customers can take advantage of an attractive and comprehensive offer of banking services.
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Bank Pekao S.A.
Pekao Direct Sp. z o.o. – Pekao Direct
Strona główna - Pekao Direct
Pekao Direct provides financial intermediation services and comprehensive services via alternative communication channels for non-banking sector clients.
The company provides services for Bank Pekao S.A., as the main client, in the scope of online banking, cards and product hotlines. Pekao Direct serves clients via alternative communication channels, including primarily telephone, e-mail and chat. The main communication channel is telephone calls, in 2024 Pekao Direct handled almost 17 million calls, which is 7.2% more than in 2023.
Pekao Direct participates in the process of setting up selfie accounts, in which it verified over 118 thousand accounts opened on selfie, i.e. 7.4% less than in 2023. In 2024, the company again recorded an increase in the handling of marketing campaigns and sales of banking products, including express loans and mortgage loans, constituting an increasingly important element of services provided to the Bank.
Pekao Financial Services Sp. o.o. – PFS
https://www.pekao-fs.com.pl
PFS provides transfer agent services, as part of outsourcing for financial institutions in the field of operational and technological solutions.
PFS specializes in servicing domestic and foreign investment funds, universal and employee pension funds, as well as entities offering insurance products. The fourteen clients served by the Company include companies with an established market position. PFS is the only company that serves OFE funds using the services of an external transfer agent.
PeUF Sp. z o. o. – PEUF
PeUF is a company 100% owned by Pekao Leasing Sp. z o.o. and operates as an insurance agent, providing insurance sales services.
serves Pekao Leasing in the scope of newly concluded insurance contracts and policies. PeUF's activities include agency services, concerning insurance services for newly concluded leasing transactions, as well as policy renewal services. In addition to agency services, the activities concern: policy monitoring, claims settlement services, as well as insurance terminations. In 2024, PeUF provided brokerage services for six insurance companies, and the value of commissions from sold policies amounted to over PLN 48 million and was 16% higher than in 2023.
7.6 Investing in human capital
Human Capital as a key asset
The principles of the Bank’s policy in the area of Human Resources (HR) development are set by its mission and values considered as the key for the Bank sustainable growth.
The Bank invests in training and professional development of employees, Significant area of the Bank’s HR policy is outstanding talents spotting within the organization and investing in development of their skills.
Our aspiration is to be the best choice not only for clients but also for employees, both future and current. Therefore, an important element of functioning is the organizational culture and the drive to create an aspirational and friendly work environment, in which everyone feels special.
Training and professional development
For many years we have been investing in the education and development of employees, offering very wide opportunities for development and improvement of competences, which affect the achievement of individual professional success of employees and the development of key competences.
We create learning opportunities and provide access to various forms of training for its employees. Educational activities focus on realization of in-class training programs, on-the-job learning, online training, coaching and Virtual Class system allowing for distance learning in form of Webinars.
In 2024, the main training priorities of the Bank were as follows:
- professional knowledge development of the Bank’s employees including a strong focus on the development of future competencies, especially in the scope of AI,
- leadership development - education for managers,
- implementation of cybersecurity trainings,
- realization of mandatory training programs required under internal and external regulations.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
In 2024 , we completed over 239 thousand of training hours (class room and virtual sessions), in which attended over 10,9 thousand of employees, his proves the effective implementation of products, methods, required regulations and customer care. O nline courses and trainings were completed at level over 395 thousand hours.
Expanding the specialist knowledge of the Bank's employees, including strong emphasis on the development of future competences
In 2024, the following training projects were implemented:
- “Copilot” – we inspire employees to use artificial intelligence in their daily work through adaptation activities as part of pilots and training for Ambassadors,
- "Academy of the Future" - we develop key competencies that are the basement of success in a modern work environment, including writing prompts,
- "Innovation Laboratory" - the aim of which is to actively build a culture of innovation in the Bank and support digital transformation,
- "Robotization Academy" - an original training program developed by our practitioners in cooperation with an external company. The program allows you to develop digital competences and use automation. Thanks to the acquired competences, you can independently build robots that will perform the most repetitive tasks,
- Agility Forge - a program thanks to which each employee has the opportunity to acquire specialist knowledge in the field of agile methodologies (Agile path), process optimization (Lean path) and process management (process development path).
- ESG Academy – a training program implemented in cooperation with an external partner, conducted in a basic scope for all Bank employees and in an extended scope for employees involved in ESG processes.
- Banking Sales School - a program implemented with the support of external partners aimed at supporting effective sales behavior, improving competences in the area of up-selling, reaching new customers, conducting meetings and coping with difficult situations.
- Individual training – over 800 people took advantage of specialist training provided by external educational companies.
Leadership development - education for managers
In 2024, we continued and developed training and development programs for managerial staff:
- Leadership Academy and Retail Manager Academy - we conducted a pilot of a new edition of the program intended for all managers in the Bank.
- Inspiring leadership – we conducted a pilot program for new managers in the Bank, the program aimed to equalize knowledge and introduce values that are applicable in the Bank.
- Leadership Network - a series of online meetings in which every manager in the Bank can participate. Invited guests are people from the business world with various experiences, trainers, academic lecturers.
Cybersecurity training
We continue training our employees in the scope of Cybersecurity, the aim of which is to provide knowledge about conscious and safe use of the Internet, both at work and in private life.
AI programs
As part of the “Copilot” pilot launched in Q3 2024, we conducted a series of training sessions dedicated to #AI Ambassadors, as well as other employees. In connection with the pilot, we established the AI Ambassador Program, the aim of which is to engage employees in the process of developing AI skills, exchanging knowledge and building competences in the use of AI. In cooperation with an external partner, we conducted a number of training sessions including: introductory training, functional training and thematic workshops in the following areas: project management and HR, analytical support and risk analysis, content generation and team cooperation, legal and regulatory and standards consistency, customer service support, acceptance testing and process correctness control.
Ambassadors had the opportunity to meet online with a trainer on a weekly basis to obtain ongoing support and update their knowledge on new features introduced in the Copilot tool.
We also engaged a significant number of employees who are not AI Ambassadors to learn about the possibilities of using Copilot in their daily work. Over 300 employees took part in trainings within dedicated areas: sales, finance, legal and HR. Over 500 people took part in all AI trainings.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
ESG programs
In June 2024, the ESG Academy Program was launched with an external partner. The event initiated a strategic training program. The project was addressed to all employee groups from management through risk and business representatives.
All Bank employees took part in the online training ESG – Key Aspects. Managers involved in ESG processes could take part in a training dedicated to them: “Sustainable development strategy in the financial sector”. Additionally, we prepared training for employees and ESG Ambassadors: “Design and development of sustainable banking products” and “Sustainable investments”. These trainings were completed by over 500 people.
ESG Ambassador Program
The ESG Ambassador Program was created for employees who want to deepen their knowledge of ESG and actively support the Bank's activities. It is attended by employees of the Headquarters and the Bank's Network. The main goal of the Program is to increase the level of employee involvement in the implementation of the sustainable development strategy and to build an ESG community and culture in the Bank. Ambassadors also participate in training as part of the ESG Academy program.
A channel on MS Teams was created especially for Ambassadors, where they can share their knowledge and experience, as well as inspire each other with posts and interesting facts about ESG. A press review is also provided, including substantive support - in the form of a review of news, trends, reports, key legislative changes and good practices. Participants of the program took part in the "Banking Bees in ESG" workshops, which allowed them, among other things, to learn about the role of bees and explore the secrets of their activities.
The ESG Academy and ESG Ambassador Program pages have been created on the bank’s intranet to promote ESG activities.
Realization of mandatory training programs required under internal and external regulations
In 2024, we carried out mandatory training, with particular emphasis on regulatory training in the areas of Bancassurance, MIFID 2 and the Mortgage Directive. Training related to regulatory areas constitutes 40% of training, which confirms the Bank's determination to train staff in line with the expectations of the market regulator and compliance with legal regulations.
The Bank also organizes a series of training courses in the field of occupational health and safety, First Aid and Recognition of the Authenticity of Money, as well as many other programs related to external regulations.
Development programs and initiatives
In 2024, we implemented development programs and initiatives for employees aimed at providing support in the development of interpersonal and managerial competences.
We implement the following development programs aimed at identifying, reviewing, verifying and developing current and future leaders.
- Succession Plans - a program that ensures continuity of employment in strategic positions, implementation of long-term projects and minimization of operational risk,
- Annual Employee Appraisal System – process of evaluation of the Bank’s employees which comprises appraisal of competencies, potential, personal development planning and business goals appraisal,
We provide employees with development initiatives aimed at supporting professional development, skills, knowledge and competences, as well as a number of initiatives strengthening employee engagement.
As part of our development activities in 2024, we carried out business training, development and integration workshops; we conducted employee potential research: Gallup tests, Insight Discovery Study, 360-degree Feedback Study; we conducted coaching processes for employees and teams.
We conducted the recruitment process and launched the development program Mission Development, in which participants discover and develop their competences and potential through practical work on real business challenges in cross- organizational teams. The program consists of two paths: project and development and is implemented in a hybrid formula.
We also implemented very popular online workshops: for managers – Managerial Shots. The program develops soft skills in the scope of management and leadership. In 2024, three editions of the program were held, during which we implemented 36 workshops, in which 3.5 thousand managers took part. The program covered, among others, the following topics: A leader close to people, Effective management of the work of virtual teams, Building authority based on trust and respect, How to support an employee when their tasks are not being performed.
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Bank Pekao S.A.
For Employees, we have launched a new online program – “Snacki Rozwojowe”. In 2024, three editions of the program took place, during which we carried out 28 workshops for over 9 thousand participants. The topics of the workshops include: teamwork, building mental resilience, and competences of the future.
Women's program "No sugar"
In 2024, we celebrated the third anniversary of the "No Sugar" Program, in which 660 women participated in-person.
As part of the Women's Program " No sugar ", we implement development and educational activities. The thematic offer of the program is constantly supplemented and updated and includes: development of professional, personal and parental competences implemented through training, workshops, webinars. As well as development programs (Conscious Leader, “Excelentni”), activities in the field of promotion and education on the subject of new technologies implemented through webinars, technical training and programs, e.g. "Closer to technology", "emPower Women".
We also supported international campaigns related to cancer prevention: Pink October, which was attended by 4 thousand participants, and Blue November, which was attended by 2,2 thousand participants.
In addition, the 2nd edition of the Development Program for Local Leaders has been launched, which aims to support leadership and design competences. Over 6.6 thousand participants took part in the activities.
Pro-Wellness activities
On the "Take your health by the horns!" website, we support and educate employees in 4 areas: healthy eating, physical activity, mental health and prevention.
In 2024, we have prepared a number of initiatives related to the health topic. The most important ones include:
 two subsequent editions of the “MiLOVE - activities with Żubr” campaign, in which we covered 446 thousand charity miles together, which contributed into support for the charitable cause in the amount of PLN 98.5 thousand.
 two campaigns "Christmas Steps with Żubr" and "Holiday Steps with Żubr", in which the steps taken by employees were converted into support for a charitable cause. The purpose for which the money is donated is chosen by the participants of the campaign. In total, we took over 533 million steps, which contributed into help for children in the amount of PLN 15,000.
 pilot project Active in the Regions, which enables the selection of physical activity tailored to local needs. We have provided all employees with the opportunity to participate in exercises carried out as part of the Active Break online, while in the Bank's Headquarters have launched yoga classes.
 a series of meetings called “Memory Academy”, the aim of which is to educate on improving concentration and efficient brain function, along with suggestions for concentration exercises.
 programmes on healthy eating, which promoted knowledge on introducing an appropriate and healthy diet, especially in the case of the most common lifestyle diseases.
 a series of meetings related to professional burnout and its prevention.
In cooperation with the Warsaw University, we have completed a project to examine the psychophysical condition of employees, the aim of which is to examine the level of psychophysical condition of employees and to develop methods that will be effective in reducing stress experienced at work and the possibility of using the advice of a psychologist present in the structures of the Bank and within our medical services provider.
Apprenticeship programs
Our important goal is to obtain a certain number of graduates of the best universities in Poland and abroad, offering them career development within the organization: the network of branches and units of the Head Office of the Bank.
We achieve these goals through:
 Summer Internship Program “Akademia Żubra” addressed to students and graduates of universities. The program is implemented for a period of 2 months - it is a good start for students who want to learn about the functioning of one of the Bank's business areas. Participants actively support Bank’s units and implement individual projects. During the Program, the intern can become familiar with work in Retail Banking branches, SME and Corporate Business Centers,
 “ Banking Champions” It is a program that allows interns to gain unique competences and practical experience in the area of finance and banking. Participants of the program have the opportunity to expand their skills in areas such as risk management, corporate and investment banking, data science, data analysis and big data, as well as new technologies and development,
 IT Banking Champions – offer of internships in the IT area. The program is addressed to students of IT universities in Poland who want to create innovative solutions in the banking sector. Participants have the opportunity to cooperate on projects of the most omnichannel bank in Poland.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Compensation policy
The compensation strategy was developed in line with the business standards and values underlying the Bank’s mission and reflected in the internal regulations as well as it constitutes the basis for enhancing and protecting the Bank's reputation and creating long term value for all the stakeholders. The key regulation in this area is the Remuneration Policy of Bank Polska Kasa Opieki Spółka Akcyjna , the last update of which was approved by the Supervisory Board of the Bank by resolution of December 16, 2022. This policy reflects the mission and values in the Bank's approach to remuneration systems, including:
- defines the compensation pillars, management of its structure, corporate and organizational processes,
- confirms the compliance requirements of the compensation systems with the generally binding law,
- defines the principles of market practice monitoring, and the approach to the matter of compensation systems which guarantees the sustainability of the Bank's functioning.
The remuneration structure ensures a direct link between remuneration and performance by guaranteeing financial stability and variable remuneration levels appropriate to the Bank's financial capacity, setting performance-based remuneration levels and developing incentive systems foreseeable the minimum levels of the Bank's performance below which the bonus is not paid. Variable remuneration covers all remuneration components, the granting of which depends on the results, and its payment is directly dependent on individual achievements and the results achieved by the Bank and adjusted to the risk.
Sustainable results contributing to the creation of long-term value for stakeholders relate to the actual results achieved and how they are achieved, with a view to measuring results consistent with shareholders' interests and profitability principles based on safe risk levels, sustainable risk management practices and a multi-dimensional performance analysis and quality of operation.
In order to ensure the competitiveness of the remuneration structures, as well as their transparency and an effective and fair remuneration system, the Bank monitors market trends in terms of forms of remuneration and the level of remuneration offered on the market. Decisions on the remuneration system at the Bank are made taking into account the available data on market trends in the area of fixed remuneration as well as incentive systems. Such data is obtained from consulting companies offering financial sector analyzes.. In 2024, the Bank conducted analyses of wage coherence between women and men in identical positions, in order to compensate for the pay gap existing at the Bank.
The Bank also has a Remuneration Policy for Members of Supervisory Board of the Bank and the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna, which sets out the framework principles and rules for determining, monitoring and controlling the remuneration rules and practices applied by the Bank in relation to the Members of its Supervisory Board and the Management Board of the Bank.
The Remuneration Policy for Members of the Supervisory Board of the Bank and the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna supports proper and effective risk management and does not encourage taking excessive risks exceeding the acceptable general risk level approved by the Bank's Supervisory Board; implementation of the Bank's management strategy and risk management strategy; mechanisms for managing conflicts of interest occurring in the Bank's operations and limiting them; as well as ensuring that remuneration and any related terms and conditions of employment that affect remuneration, including those relating to conditions for granting and payment of remuneration, are gender neutral, i.e. they are not differentiated on the basis of gender.
As part of the remuneration system, employees are offered non-wage benefits ensuring fair treatment and consistency of the remuneration system.
Each year, a report on the functioning of the Remuneration Policy at the Bank is prepared, which is then presented at the General Meeting of Shareholders in order to assess whether the functioning of the Remuneration Policy in force at the Bank, supports the development and security of the Bank's operations.
Information regarding remuneration value of each Member of the Management Board is presented in the point 10, the section of the Management Board and the Supervisory Board Remuneration.
The Subsidiaries of the Bank's Capital Group have remuneration policies adapted to the size and specificity of their activities and the remuneration principles.
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Bank Pekao S.A.
Incentive systems
In the Bank, there are three main incentive systems: an Executive Variable Compensation System, a System based on Management by Objectives (MBO), and a system based on provisions of Corporate Collective Labour Agreement, which is based on quarterly bonuses, bonus for retail sales forces and incentive reward.
The top management is covered by a variable remuneration system dedicated to people who have a significant impact on the Bank's risk profile. The aim of the System is to support the execution of the Bank’s operational strategy and to mitigate excessive risk conflicts of interest. Participant covered by the system may receive a variable compensation based on a bonus pool approach. The System provides a comprehensive performance measurement at individual level, level of his/her organizational unit and results of the entire Bank, as well as verification of the participant’s compliant behaviour with respect to law provisions, and standards adopted by the Bank and risk assessment. For reinforcement of care for long-term welfare of the Bank, under the system at least 50% of variable remuneration is provided in phantom shares based on the value of the Bank shares and at least 40% of the bonus is deferrable and paid after the end of the evaluation period it is payable for.
Annual goals set for the Bank's top management as part of the incentive system ensure consistency with the strategy of introducing sustainable development risks into the business in the investment decision-making process, and are consistent with the goals of the Bank's business strategy and risk strategy, including environmental, social and governance risks. (ESG risk), are consistent with the Bank's corporate culture and values, risk culture, including in relation to the long-term interests of the institution, as well as with the measures used to prevent conflicts of interest, and should not encourage excessive risk- taking.
The system of variable remuneration components is developed by Human Resources Division, with the involvement and participation of other organizational units of the Bank, including Legal Department, Compliance Department, Risk Management Division, Financial Division, and in consultation with Internal Audit Department. This is to ensure compliance with the regulations, the Bank's articles of association and the standards of ethical conduct or other standards of conduct applicable to the Bank, in such a way that legal, compliance and reputational risks mostly related to customer relations are properly controlled and managed.
Variable remuneration systems implemented in the Bank's subsidiaries have schemes similar to the Bank for the division of remuneration into cash and financial instruments, taking into account general provisions and guidelines of market regulators regarding the sectors in which the subsidiaries operate.
MBO system covers employees employed under the management contract and refers in particular to the sales positions and to the managerial positions, which play a significant role in achieving the Bank’s commercial goals. Under the MBO system, employees receive individual goals for realisation, which result from the financial plan adopted for a given year and the Bank's key goals. The amount of the annual bonus depends on the level of implementation of these goals, as well as the result achieved by the Bank. Sales functions employees, in each quarter, can receive an advance payment towards the annual bonus in achieving of the set goals.
The system based on the provisions of the Corporate Collective Labour Agreement (CCLA) applies to all employees who are covered by it. According to the provisions of CCLA the basis of the system is a quarterly bonus which is discretionary and depends on evaluation of employee’s performance, the level of commitment and the results achieved by the Bank in a given year, as well as the incentive bonus, which is granted for outstanding achievements in professional work. In 2024, guidelines for variable remuneration, i.e. the bonus for sales network employees covered by the CCLA. According to the guidelines, the employee bonus was awarded based on the employee's individual sales results, taking into account the qualitative component. Determining the final amount of variable remuneration of employees covered by the Guidelines depended on the results of assessing the compliance of the employee with achieving goals or tasks.
Selections and Suitability Assessment Policy
The Bank has a Policy of selecting candidates for the position of a member of the Management Board and the key function as well as assessing the suitability of proposed and appointed members of the Management Board, Supervisory Board and persons holding key functions at Bank Polska Kasa Opieki Spółka Akcyjna (Selection and suitability assessment policy) approved by the Bank's Supervisory Board on 30 December 2020. The aim of the Policy is to guarantee an optimal and uniform process of selecting candidates for the position of a member of the Management Board and the Key Function at the Bank, so as to ensure that tasks related to the implementation of the Bank's plans and business strategy are performed by persons who have the necessary knowledge, experience and skills, and who enjoy get a good reputation.
The subsidiaries have implemented the Suitability Assessment Policies in accordance with applicable law.
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Bank Pekao S.A.
Gender equality and Diversity policy
The Bank has a Gender equality and diversity policy with regard to members of the Supervisory Board, members of the Management Board and persons holding Key Functions at Bank Polska Kasa Opieki Spółka Akcyjna (Gender equality and diversity policy) introduced on December 18, 2020 by the Order of the President of the Management Board, which defines the strategy in the scope of managing diversity of the Bank's employees, including diversity with regard to the appointment of members of the Supervisory Board, members of the Management Board and persons performing Key Functions at the Bank. The gender equality and diversity policy define guidelines aimed at ensuring that the Bank's employees can manage their careers, achieve success and evaluate their work on the basis of individual achievements, regardless of gender.
The purpose of the Bank's diversity strategy referred to in the Gender Equality and Diversity Policy is to ensure high-quality performance of tasks by the Bank's employees, including the selection of competent persons to perform functions in the Supervisory Board, Management Board and Key Functions at the Bank, first of all applying objective substantive criteria and taking into account the benefits of diversity.
The gender equality and diversity policy, in accordance with the legislative process in force at the Bank, was adopted by the Bank's Management Board and approved by the Supervisory Board and in relation to Members of the Supervisory Board, by the General Meeting of Shareholders.
Gender equality enables the Bank's employees to manage their career, achieve success and evaluate their work on the basis of individual achievements, regardless of gender.
Relations with Trade Union Organizations and the Works` Council
In 2024 the cooperation between the Bank and Trade Unions in the range of consultation, negotiations and other agreements were led pursuant to the rules defined in the labour law, with respect for both sides’ interests and social dialog rules. In 2024, a total of 17 one- or two-day meetings were held with Trade Union Organizations and a total of 3 meetings with the Workers' Council.
During year 2024, there were four group disputes in the Bank, initiated in 2016, 2019, 2021 and in 2024. In terms of the 2016 group dispute, there is a signed protocol of divergence.
Bank, in the mutual relations with Trade Union organizations guided the principles of good will to achieve the best solutions in the range of collective labour law both for employees and for the Bank.
Workforce in number 3
At the end of December 2024, employment in the Group amounted to 15,101 full-time positions (in the Bank and the companies consolidated under full consolidation method) compared to 14,798 full-time positions at the end of 2023.
At the end of December 2024, the Bank's employment amounted to 12,602 full-time positions compared to 12,447 full-time positions at the end of 2023.
The average age of the employees was 46.2 years, 78.6% of the employees are university graduates ( 77.4% in 2023), women represent 67.8% of the total workforce.
7.7 Sponsorship and charity policy
Our sponsorship and charity activities are aimed at strengthening the Bank's image as an open and modern institution, closely aligned with our clients as well as the local community.
We support nationwide projects by sponsoring strategic events that have a significant impact on Polish culture, and are dedicated to local communities. We strive to improve the quality of life of the Polish society, as well as strengthen our long- term relationship with the society based on our deep understanding of their needs. We support initiatives based on long-term social commitment with selected organizations and institutions that operate in areas such as:
- sustainable economic development,
- promotion of national values and the Polish cultural identity,
- promotion of cultural activities and sport,
- aid for vulnerable children,
- environmental protection.
3 In the report for 2024, a method of reporting employment data was adopted, taking into account all persons employed under an employment contract (active and inactive), excluding persons employed for 0.1 full-time positions or less (so-called technical positions), replacing the previous reporting method.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Our charity activities are carried out mainly through the Bank Pekao S.A. Foundation, which was established in 1997. The scope of the Foundation's charitable and social activities is very wide. In 2024, the Foundation made 24 targeted donations. The areas covered by the supported projects were consistent with its statutory objectives and included, among others: charitable, cultural and educational activities, healthcare, physical activity and sport. The Foundation also supported initiatives to promote volunteering, as well as ecological and animal protection activities. In the wake of the natural disasters which struck southern Poland this year, the Foundation provided financial support for WOSP to purchase medical equipment for hospitals affected by the flood. There was also a fundraiser for the flood victims organized by the Bank’s employees.
In 2024, the Bank was involved in a number of projects organized throughout the country, which allowed to significantly maintain the continuity of long-term initiatives and provided great support to the community.
The Foundation also supports activities in the area of promoting and organizing employee volunteering. One of the forms of employee volunteering is the “Jesteśmy blisko” (We are close) grant competition addressed to employees who recognize and respond to the needs of local communities. In 2024, 140 local aid initiatives were carried out in 105 towns and cities. The beneficiaries of volunteering were children and adolescents, members of care homes and educational institutions, patients of medical facilities, participants on workshops and themed classes, members of sport clubs or music centers as well a shelter animals. Some of the projects carried out as part of the grant competition were directed to flood-affected areas as part of emergency aid.
The Bank’s management is also involved in volunteering activities. Information abut key initiatives is presented in summaries and reports on employee volunteering available on the Bank’s website.
Bank’s employees are successfully involved in a number of activities based on the idea of employee volunteering, like voluntary blood donations, first aid workshops to prepare volunteers to respond courageously in life or health-threatening situations and ecological workshops at the Bank’s urban apiary aimed at educating about the urban ecosystem.
For many years we have been consistently involved in the protection of the Polish bison, and we contribute to the protection of the world's largest free-living herd of bison living in the Białowieża Forest. We co-finance scientific and educational projects of such institutions as Białowieża National Park, the Foundation for the Development of the Warsaw Zoological Garden "Panda", the Agency for the Development and Promotion of the Pszczyna Land, or the Association of European Bison Lovers.
In 2024, the Bank has continued our partnership with the Polish Basketball Association (PZKosz) and the Polish Basketball League S.A. (PLK), as well as supporting the polish National Basketball Team and youth competitions. The brand of the Bank will be still featured on the official uniforms of the Polish representation.
As one of the leaders of the financial sectors in Poland, Bank is involved in key economic initiatives organized locally and abroad. The Bank’s involvement is based on both financial and strategic support. In 2024, we attended at the Impact’24 conference, the European Economic Congress and the Corporate and Investment Banking Congress. We were also involved in co-founding the 15th EPA Congress, as well as cooperation with the Chamber of Brokerage Houses and the Association of Polish Banks. Thew Bank’s area of interests also includes the subject of cyber-security, which has resulted in its support of such initiatives as Defense24 Days and Cyber24 Day.
In 2024, we continued to promote projects relating to Polish national traditions or cultural heritage. We cooperated with the Royal Castle in Warsaw, the Academy of Fine Arts in Warsaw, the Jan Matejko Academy of Fin Arts in Kraków and the Museum of the Monument of History “Frombork - Cathedral Complex”.
What’s more, we donated 20 pieces form the Bank’s collection to the National Museum in Poznań. The donated artworks included paintings by such household names as Jan Matejko, Stanisław Wyspiański, Wojciech Kossak, Julian Fałat, Józef Mehoffer and Zygmunt Waliszewski.
In cooperation with the Academy of Fine Arts in Warsaw several films about Polish artists and their life’s work were released: Franciszek Maśluszczak, Adam Myjak i Wojciech Kossak.
In September 2024, we took part in the Archive3 project, in which new technologies enabled professional scanning of several art pieces from the Bank’s collection (10 paintings by 7 artists). Subsequently, the works have become a part of the NFT collection (non-fungible tokens, stored in the blockchain network) and recorded on photosensitive film, which, appropriately secured, has been deposited at the World Arctic Archive. The guaranteed protection of such a deposit is a minimum of 1000 years.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
8. Statement of Financial Position and Financial Results
Consolidated income statement containing cumulated items for the period from 1 January to 31 December, 2024 and 2023 respectively is presented in the Consolidated Financial Statements of Bank Pekao S.A. Group for the year ended on 31 December 2024.
The Report on activities of Bank Pekao S.A. Group for the year 2024, includes statement of financial position in a short form and income statement in a presentation form as well as the key, selected items from these statements are discussed.
8.1 The consolidated income statement – presentation form
In 2024, we generated net profit of Bank Pekao S.A. Group attributable to the Bank's shareholders in the amount of PLN 6.376 million. This result was nominally lower by PLN 283 million than the result achieved in 2023, mainly due to higher costs of legal risk of foreign currency mortgage loans, higher operating costs and the recognition of costs related to the modification of PLN mortgage loan agreements granted to consumers due to their suspension of loan repayments (credit holidays).
Net profit excluding the cost of credit holidays and the costs of legal risk of foreign currency mortgage loans amounted to PLN 7,169 million and was 4.0% higher y/y.
(in PLN million)
2024
2023
CHANGE
Net interest income
12 729
11 893
7,0%
Net fee and commission income
2 854
2 786
2,4%
Dividend,income
30
30
0.0%
Trading result
444
507
(12.4%)
Net other operating income and expenses
(8)
(16)
(50.0%)
Net non-interest income
3,320
3,307
0.4%
Operating income
16,049
15,200
5.6%
Operating costs
(5,244)
(4,631)
13.2%
Gross operating profit
10,805
10,569
2.2%
Net allowances for expected credit losses
(883)
(626)
41.1%
Costs of legal risk of foreign currency mortgage loans
(669)
(315)
> 100%
Net operating profit
9,253
9,628
(3.9%)
Contributions to the Bank Guarantee Fund
(239)
(190)
25.8%
Tax on certain financial institutions
(898)
(879)
2.2%
Share in profit on assiosiates
7
6
16.7%
Profit before tax
8,123
8,565
(5.2%)
Income tax expense
(1,744)
(1,904)
(8.4%)
Net profit
6,379
6,661
(4.2%)
Attributable to equity holders of the Bank
6,376
6,659
(4.2%)
Attributable to non-controlling interest
3
2
50.0%
Operating income
The Group's operating income in 2024 amounted to PLN 16,049 million and was 5.6% higher than the income achieved in the 2023, mainly due to net interest income, despite the recognition of credit holiday costs.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Total net interest income
(in PLN million)
2024
2023
CHANGE
Interest income and similar to interest
18,810
18,055
4.2%
Interest expense
(6,081)
(6,162)
(1.3%)
Net interest income
12,729
11,893
7.0%
Net interest income achieved in 2024 amounted to PLN 12,729 million and was higher by PLN 836 million, i.e. 7.0% compared to the result achieved in 2023, mainly due to higher volumes and a stable interest margin, despite the recognition of credit holiday costs in the amount of PLN 153 million.
Interest income and similar to interest
Interest income and similar to interest in 2024 amounted to PLN 18,810 million and was higher by PLN 755 million y/y, thanks to higher volumes, despite lower interest rates and the recognition of credit holiday costs in the amount of PLN 153 million.
Interest expense
Interest expenses in 2024 amounted to PLN 6,081 million and were lower by PLN 81 million y/y, despite higher volumes of liabilities to customers and from the issue of debt securities.
Interest margin
The interest margin excluding the costs of recognizing credit holidays achieved in 2024 amounted to 4.21% and was 0.06 p.p. higher than the margin achieved in 2023.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Net non-interest income
(in PLN million)
2024
2023
CHANGE
Fee and commission income
3,731
3,590
3.9%
Fee and commission expense
(877)
(804)
9.1%
Net fee and commission income
2,854
2,786
2.4%
Dividend income
30
30
0.0%
Trading result
444
507
(12.4%)
Net other operating income and expense
(8)
(16)
(50.0%)
Net non-interest income
3,320
3,307
0.4%
The non-interest income achieved in 2024 amounted to PLN 3,320 million and was highrt by PLN 13 million, i.e. 0.4% compared to the result achieved in the previous year, thanks to higher fee and commission income.
The net fee and commission income achieved in 2024 amounted to PLN 2,854 million and was higher by PLN 68 million, i.e. 2.4% compared to the result achieved in 2023 , mainly due to higher commissions from investment funds (the effect of better gross sales and assets under management increased by 32.9% y/y).
The table below presents the Group’s net fee and commission income divided according to the main areas of the activity.
(in PLN million)
2024
2023
CHANGE
Net fee and commission income
2,854
2,786
2.4%
on loans
628
617
1.8%
on cards
308
361
(14.5%)
on mutual funds
479
350
36.9%
on brokerage activate
154
171
(9.8%)
on margins on foreign exchange transactions with clients
707
723
(2.2%)
other
577
564
2.2%
Operating costs
Operating costs in the 2024 amounted to PLN 5,244 million and were higher by PLN 613 million, i.e. 13.2% compared to the 2023, mainly due to inflation indexation of salaries, the variable part of personnel costs related to the result and costs related to the voluntary redundancy program.
(in PLN million)
2024
2023
CHANGE
Personnel expenses
(3,306)
(2,752)
20.1%
General administrative expenses and depreciation
(1,938)
(1,879)
3.1%
Operating costs
(5,244)
(4,631)
13.2%
The cost/income ratio in 2024 was 32.7% compared to 30.5% in the same period of 2023.
Contributions to the Bank Guarantee Fund
Contributions to the Bank Guarantee Fund in 2024 amounted to PLN 239 million and were higher by PLN 49 million i.e. 25.8% than in 2023, due to the increase in the volume of guaranteed funds.
Tax on certain financial institutions
The tax on certain financial institutions in 2024 amounted to PLN 898 million and was higher by PLN 19 million, i.e. 2.2% than in 2023 due to the increase in the Bank's assets.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Net allowances for expected credit losses
(in PLN million)
2024
2023
CHANGE
financial assets measured at amortized cost
(913)
(523)
74.4%
financial assets measured at fair value through other comprehensive income
8
13
(40.2%)
financial liabilities measured at amortized cost
22
(116)
x
Net allowances for expected credit losses
(883)
(626)
41.1%
Costs of legal risk of foreign currency mortgage loans
(669)
(315)
> 100%
The Net allowances for expected credit losses in the amounted to PLN 883 million and was higher by PLN 257 million, i.e. 41.1% than in 2023.
Costs of risk
The Group's cost of risk in 2024 amounted to 0.48%, up 0.12 p.p. from the previous year, and are in line with the strategic assumptions and the adopted risk appetite.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
8.2 Structure of the consolidated statement of financial position – short form
The balance sheet of Bank Pekao S.A. determines the amount of total assets in balance sheet and the structure of the assets and liabilities of the Group. As at the end of December 2024 , the total assets of Bank Pekao S.A. constitutes 95.5% of the total assets of the whole Group.
The table below presents the Group’s statement of financial position – short form.
31.12.2024
31.12.2023
ASSETS
PLN MILLION
STRUCTURE
PLN MILLION
STRUCTURE
CHANGE
Cash and cash equivalents (*)
14,269
4.3%
14,715
4.8%
(3.0%)
Loans and advances to banks (**)
172
0.1%
173
0.1%
(0.6%)
Loans and advances to customers (***)
182,158
54.5%
171,140
56.0%
6.4%
Reverse repo transactions
4,685
1.4%
1,703
0.6%
> 100%
Securities (****)
119,772
35.8%
99,962
32.7%
19.8%
Investments in associates
59
0.0%
54
0.0%
9.3%
Property, plant and equipment and intangible assets
4,573
1.4%
4,341
1.4%
5.3%
Other assets
8,554
2.6%
13,701
4.5%
(37.6%)
Total assets
334,242
100.0%
305,789
100.0%
9.3%
(*) Cash and cash equivalents include cash in hand, amounts due from the National Bank of Poland, as well as amounts due from banks with a maturity of up to 3 months.
(**) Including net investments in financial leases to banks.
(***) Including net investments in financial leases to customers and non-treasury debt securities .
(****) Including financial assets held for trading. other financial instruments at fair value through profit and loss and excluding non-treasury debt securities
31.12.2024
31.12.2023
EQUITY AND LIABILITIES
PLN MILLION
STRUCTURE
PLN MILLION
STRUCTURE
CHANGE
Amounts due to other banks
7,344
2.2%
7,597
2.5%
(3.3%)
Amounts due to customers
259,034
77.5%
232,078
75.9%
11.6%
Debt securities issued
16,167
4.8%
9,958
3.3%
62.4%
Subordinated liabilities
2,782
0.8%
2,781
0.9%
0.0%
Repo transactions
1,000
0.3%
1,649
0.5%
(39.4%)
Lease liabilities
707
0.2%
579
0.2%
22.1%
Other liabilities
15,294
4.6%
20,719
6.8%
(26.2%)
Total equity including
31,914
9.5%
30,428
10.0%
4.9%
non-controlling interests
13
0.0%
12
0.0%
8.3%
Total liabilities
334,242
100.0%
305,789
100.0%
9.3%
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
8.2.1 Assets
Changes in the structure of assets
Loans and advances to customers and securities represent items of the largest value under assets. As at the end of 2024, they accounted for 54.5% and 35.8% of the total assets respectively in comparison with 56.0% and 32.7% respectively as at the end of 2023.
Customers’ Financing
Customer structure of loans and advances
(in PLN million)
31.12.2024
31.12.2023
CHANGE
Loans and advances at nominal value (*)
186,507
176,350
5.8%
Loans and investments in financial leases
174,800
165,102
5.9%
Retail
83,768
78,375
6.9%
Corporate
91,032
86,727
5.0%
Non-treasury debt securities
11,707
11,248
4.1%
Other (**)
1,631
1,144
42.6%
Impairment allowances
(5,980)
(6,354)
(5.9%)
Total net receivables
182,158
171,140
6.4%
Reverse repo transactions
4,673
1,698
>100%
Total Customers’ financing (***)
191,180
178,048
7.4%
(*) Excluding reverse repo transactions.
(**) Including interest and receivables in transit.
(***) Total customers’ financing includes loans and advances at nominal value. securities issued by non-monetary entities and reverse repo transactions.
As at the end of December 2024 , loans and advances at nominal value amounted to PLN 186,507 million and were higher by PLN 10,157 million, i.e. 5.8% than at the end of December 2023 .
As at the end of December 2024 the volume of retail l oans amounted to PLN 83,768 million and were higher by PLN 5,393 million, i.e. 6.9% than at the end of December 2023 .
Corporate loans including non-treasury debt securities at the end of December 2024 amounted to PLN 102,739 million and were higher by PLN 4.764 million, i.e. 4.9% compared to the end of December 2023 .
Receivables and impairment losses (*)
(in PLN million)
31.12.2024
31.12.2023
CHANGE
Gross receivables
188,138
177,494
6.0%
Stage 1
160,546
151,877
5.7%
Stage 2
19,179
17,636
8.8%
Stage 3
8,413
7,981
5.4%
Impairment allowances
(5,980)
(6,354)
(5.9%)
Stage 1
(676)
(838)
(19.3%)
Stage 2
(864)
(871)
(0.8%)
Stage 3
(4,440)
(4,645)
(4.4%)
Total net receivables
182,158
171,140
6.4%
(*) Including net investments in financial leases to customers. non-treasury debt securities . interest and receivables in transit and excluding reverse repo transactions.
As at the end of December 2024 the ratio of impaired receivables (stage 3) to the gross receivables amounted to 4.5%.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Loans and advances to customers by currency (*)
31.12.2024
31.12.2023
PLN MILLION
STRUCTURE
PLN MILLION
STRUCTURE
CHANGE
Denominated in PLN
152,418
81.0%
143,203
80.7%
6.4%
Denominated in foreign currencies (**)
35,720
19.0%
34,291
19.3%
4.2%
Total
188,138
100.0%
177,494
100.0%
6.0%
Impairment allowances
(5,980)
x
(6,354)
x
(5.9%)
Total net
182,158
x
171,140
x
6.4%
(*) Including net investments in financial leases to customers. non-treasury debt securities . interest and receivables in transit and excluding reverse repo transactions.
(**) Including indexed loans.
The currency structure of loans and advances to customers is dominated by amounts expressed in the Polish złoty, as at the end of December 2024 their share was 81.0%. The largest portion of foreign currency loans and advances to customers were represented by those denominated in EUR ( 92.4%), CHF (0.9%) oraz USD (5.2%).
Loans and advances to customers by contractual maturities (*)
31.12.2024
31.12.2023
PLN MILLION
STRUCTURE
PLN MILLION
STRUCTURE
CHANGE
Current and up to 1 month
22,502
12.0%
19,739
11.1%
14.0%
1 to 3 months
7,385
3.9%
9,100
5.1%
(18.8%)
3 months to 1 year
19,328
10.3%
18,495
10.4%
4.5%
1 to 5 years
62,143
33.0%
58,028
32.7%
7.1%
Over 5 years
71,616
38.1%
66,967
37.7%
6.9%
Past due
3,533
1.9%
4,021
2.3%
(12.1%)
Other
1,631
0.9%
1,144
0.6%
42.6%
Total
188,138
100.0%
177,494
100.0%
6.0%
Impairment allowances
(5,980)
x
(6,354)
x
(5.9%)
Total net
182,158
x
171,140
x
6.4%
(*) Including net investments in financial leases to customers. non-treasury debt securities . interest and receivables in transit and excluding reverse repo transactions.
As at the end of December 2024 loans and advances with maturity over 5 years represents 38.1% of total loans and advances (mainly attributed to mortgage loans, investment loans and non-treasury debt securities).
Information on loan concentration is included in the Note no 22 to the Consolidated Financial Statements of Bank Pekao S.A. Group for the year ended on 31 December 2024.
8.2.2 Liabilities
Changes in the structure of liabilities
Amounts due to customers were the main item under the Group’s liabilities and equity. As at the end of 2024, amounts due to customers, debt securities issued and subordinated liabilities totaled PLN 277,983 million, and their share in the total assets was 83.2%, compared with 80.1% as at the end of 2023. The share of total shareholder’s equity in the total assets was 9.5% as at the end of 2024, compared with 10.0% as at the end of 2023.
External sources of financing
(in PLN million)
31.12.2024
31.12.2023
CHANGE
Amounts due to other banks
7,344
7,597
(3.3%)
Amounts due to customers
259,034
232,078
11.6%
Debt securities issued
16,167
9,958
62.4%
Subordinated liabilities
2,782
2,781
0.0%
Repo transactions
1,000
1,649
(39.4%)
Total external sources of financing
286,327
254,063
12.7%
The deposit base is widely diversified and is sourced from retail and corporate customers. In addition, the Group uses also funds borrowed on the interbank market. The Group is not dependent on any single customer nor group of customers.
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Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Amounts due to customers and debt securities issued
(in PLN million)
31.12.2024
31.12.2023
CHANGE
Corporate deposits
109,183
100,005
9.2%
Non-financial entities
79,810
76,394
4.5%
Non-banking financial entities
9,259
6,337
46.1%
Budget entities
20,114
17,274
16.4%
Retail deposits
148,844
130,964
13.7%
Other (*)
1,007
1,109
(9.2%)
Amounts due to customers (**)
259,034
232,078
11.6%
Debt securities issued of which
18,949
12,739
48.7%
Senior bonds
6,456
4,014
60.8%
Subordinated bonds
2,750
2,750
0.0%
Pekao Bank Hipoteczny S.A. covered bonds
1,428
1,042
37.0%
Pekao Bank Hipoteczny S.A. bonds
565
270
> 100%
Pekao Leasing Sp. z o.o. bonds
3,490
2,244
55.5%
Pekao Faktoring Sp. z o.o. bonds
4,119
2,286
80.2%
Interest
141
133
6.0%
Amounts due to customers and debt securities issued (**)
277,983
244,817
13.5%
Lease liabilities
707
579
22.2%
Repo transactions
1,000
1,649
(39.4%)
Amounts due to customers and debt securities issued total (***)
279,690
247,045
13.2%
Investment funds of Pekao TFI S.A. (ex. Pioneer Pekao TFI)
32,189
24,228
32.9%
Bond and money market funds
23,363
16,753
39.5%
Balanced funds
5,055
4,221
19.8%
Equity funds
2,131
2,102
1.4%
PPK
1,640
1,152
42.3%
including distributed through the Group’s network
28,308
20,921
35.3%
(*) Other item includes interest and funds in transit.
(**) Excluding repo transactions and lease liabilities.
(***) Including repo transactions and lease liabilities.
As at the end of December 2024 amounts due to the Group’s Customers and Debt securities issued amounted to PLN 277,983 million and were higher by PLN 33,166 million, i.e. 13.5% than at the end of December 2023.
The total volume of Retail deposits, Structured Certificates of Deposit and other amounted to PLN 149,710 million at the end of December 2024 an increase by PLN 17,798 million, i.e. 13.5% compared to the end of December 2023.
As at the end of December 2024 the total volume of Corporate deposits, Senior bonds, Subordinated bonds, Pekao Bank Hipoteczny S.A. covered bonds and bonds Pekao Leasing Sp. z o.o. bonds Pekao Faktoring Sp. z o.o. bonds interest and other amounted to PLN 128,273 million and were higher by PLN 15,368 million, i.e. 13.6% compared to the end of December 2023.
The value of net assets of investment funds managed by Pekao TFI S.A. amounted to PLN 32,189 million and was higher by PLN 7,961 million, i.e. 32.9% compared to the end of December 2023.
Amounts due to customers by currency (*)
31.12.2024
31.12.2023
PLN MILLION
STRUCTURE
PLN MILLION
STRUCTURE
CHANGE
Denominated in PLN
215,937
83.4%
190,457
82.1%
13.4%
Denominated in foreign currencies
43,097
16.6%
41,621
17.9%
3.5%
Total
259,034
100.0%
232,078
100.0%
11.6%
(*) Including interest and amounts due in transit and excluding repo transactions and lease liabilities.
The bulk of the amounts due to customers are denominated in the Polish currency and its share as at the end of December 2024 amounted to 83.4%. The majority of amounts due to customers denominated in foreign currencies were in EUR (64.6%) and USD (29.3%).
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Amounts due to customers by contractual maturities (*)
31.12.2024
31.12.2023
PLN MILLION
STRUCTURE
PLN MILLION
STRUCTURE
CHANGE
Current accounts and overnight deposits
186,918
72.4%
170,978
74.0%
9.3%
Term deposits
71,109
27.6%
59,991
26.0%
18.5%
Total deposits
258,027
100.0%
230,969
100.0%
11.7%
Interest accrued
638
x
633
x
0.8%
Funds in transit
369
x
476
x
(22.5%)
Total
259,034
x
232,078
x
11.6%
(*) Excluding repo transactions and lease liabilities.
Provisions, deferred tax assets and liabilities
(in PLN million
31.12.2024
31.12.2023
CHANGE
Total provisions
2,310
1,956
18.1%
provisions for off-balance sheet commitments
477
504
(5.2%)
provisions for liabilities to employees
313
293
6.6%
other provisions
1,520
1,159
31.1%
Deferred tax liabilities
18
21
(12.7%)
Deferred tax assets
1,343
1,102
21.8%
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Bank Pekao S.A.
9. Separate Statement of Financial Position and Financial Results
Separate income statement containing cumulated items for the period from 1 January to 31 December, 2024 and 2023 respectively is presented in the Separate Financial Statements of Bank Pekao S.A. for the period ended on 31 December 2024 .
Below presented statement of financial position in a short form and income statement in a presentation form as well as the key, selected items from these statements are discussed.
9.1 The Separate income statement – presentation form
In 2024, Net profit of the Bank Pekao S.A , we generated in the amount of PLN 6,425 million. This result is nominally lower by PLN 374 million than the result achieved in 2023, mainly due to higher costs of legal risk of foreign currency mortgage loans, higher operating costs and the recognition of costs related to the modification of PLN mortgage loan agreements granted to consumers due to their suspension of loan repayments (credit holidays).
Net profit excluding the cost of credit holidays and the costs of legal risk of foreign currency mortgage loans amounted to PLN 7,164 million and was 3.7% higher y/y.
(in PLN million)
2024
2023
CHANGE
Net interest income
12,351
11,559
6.9%
Net fee and commission income
2,298
2,346
(2.0%)
Dividend,income
231
268
(13.8%)
Trading result
426
502
(15.1%)
Net other operating income and expenses
(16)
(18)
(11.1%)
Net non-interest income
2,939
3,098
(5.1%)
Operating income
15,290
14,657
4.3%
Operating costs
(4,794)
(4,230)
13.3%
Gross operating profit
10,496
10,427
0.7%
Net allowances for expected credit losses
(638)
(524)
21.8%
Costs of legal risk of foreign currency mortgage loans
(618)
(193)
> 100%
Net operating profit
9,240
9,710
(4.8%)
Contributions to the Bank Guarantee Fund
(237)
(188)
26.1%
Tax on certain financial institutions
(898)
(879)
2.2%
Profit before tax
8,105
8,643
(6.2%)
Income tax expense
(1,680)
(1,844)
(8.9%)
Net profit
6,425
6,799
(5.5%)
Operating income
In 2024, the operating income amounted to PLN 15,290 million and was higher by 4.3% in comparison with 2023 , mainly due to net interest income despite the inclusion of credit holiday costs.
Total net interest income
(in PLN million)
2024
2023
CHANGE
Interest income and similar to interest
17,708
17,098
3.6%
Interest expense
(5,357)
(5,539)
(3.3%)
Net interest income
12,351
11,559
6.9%
Net interest income in 2024, amounted to PLN 12,351, million and was higher by PLN 792 million, i.e. 6.9% compared to the result achieved in 2023 mainly due to higher volumes and a stable interest margin, despite the recognition of credit holiday costs in the amount of PLN 150 million.
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Bank Pekao S.A.
Interest income and similar to interest
I n 2024 , the interest income and similar amounted to PLN 17,708 million and was higher by PLN 610 million y/y, thanks to higher volumes, despite lower interest rates and taking into account the costs of credit holidays in the amount of PLN 150 million.
Interest expense
In 2024, the interest expense amounted amounted to PLN 5,357 million and were higher by PLN 182 million y/y despite higher volumes of liabilities to customers and from the issuance of debt securities.
Net interest margin
The interest margin achieved in 2024 amounted to 4.28% and was higher by 0,05 p.p. than the margin achieved in the 2023, despite lower interest rates.
Net non-interest income
(in PLN million)
2024
2023
CHANGE
Fee and commission income
3,244
3,196
1.5%
Fee and commission expense
(946)
(850)
11.3%
Net fee and commission income
2,298
2,346
(2.0%)
Dividend income
231
268
(13.8%)
Trading result
426
502
(15.1%)
Net other operating income and expense
(16)
(18)
(11.1%)
Net non-interest income
2,939
3,098
(5.1%)
The non-interest income in 2024 amounted to PLN 2,939 million and was lower by PLN 159 million, i.e. 5.1% compared to the result achieved last year, due to the lower valuation of derivative instruments and lower net fee and commission income.
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Bank Pekao S.A.
The table below presents the Bank’s net fee and commission income divided according to the main areas of the activity.
(in PLN million)
2024
2023
CHANGE
Net fee and commission income
2,298
2,346
(2.0%)
on loans
523
510
2.4%
on cards
308
361
(14.5%)
on mutual funds
117
99
18.4%
on brokerage activate
141
145
(2.9%)
on margins on foreign exchange transactions with clients
707
723
(2.2%)
other
502
508
(1.2%)
Operating costs
In 2024, operating costs amounted to PLN 4,794 million and were higher by PLN 564 million, i.e. 13.3% compared to the 2023, mainly due to inflation indexation of salaries and the variable part of personnel costs related to the profit and the reserve created for the voluntary redundancy program.
(in PLN million)
2024
2023
CHANGE
Personnel expenses
(2,889)
(2,409)
19.9%
General administrative expenses and depreciation
(1,905)
(1,821)
4.6%
Operating costs
(4,794)
(4,230)
13.3%
The cost/income ratio in 2024 was 31.4% compared to 28.9% in 2023.
Contributions to the Bank Guarantee Fund
Bank Guarantee Fund fee in the 2024, amounted to PLN 237 million, and were higher by PLN 49 million, i.e. 26.1% in comparison with of 2023.
Tax on certain financial institutions
Tax on certain financial institutions in 2024 amounted to PLN 898 million and was higher by PLN 19 million, i.e. 2.2% compared to 2023 , due to an increase in Bank’s assets.
Net allowances for expected credit losses
(in PLN million)
2024
2023
CHANGE
financial assets measured at amortized cost
(686)
(417)
64.5%
financial assets measured at fair value through other comprehensive income
20
6
> 100%
financial liabilities measured at amortized cost
28
(113)
x
Net allowances for expected credit losses
(638)
(524)
21.8%
Costs of legal risk of foreign currency mortgage loans
(618)
(193)
> 100%
The ne allowances for expected credit losses in the 2024 amounted to PLN 638 million and was higher by PLN 114 million, i.e. 21.8% than in the 2023.
Costs of risk
The Bank’s cost of risk in 2024 amounted to 0.38%, which is 0.06 p.p. higher than the previous year and is in line with the strategic assumptions and the adopted risk appetite.
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Bank Pekao S.A.
9.2 Structure of the separate statement of financial position – short form
The table below presents the Bank’s statement of financial position – short form.
31.12.2024
31.12.2023
ASSETS
PLN MILLION
STRUCTURE
PLN MILLION
STRUCTURE
CHANGE
Cash and due from Central Bank (*)
14,245
4.5%
14,836
5.0%
(4.0%)
Loans and advances to banks
379
0.1%
426
0.1%
(11.0%)
Loans and advances to customers (**)
165,435
51.8%
157,406
53.4%
5.1%
Reverse repo transactions
4,685
1.5%
1,703
0.6%
> 100%
Securities (**)
121,133
37.9%
101,730
34.5%
19.1%
Investments in subsidiaries
1,922
0.6%
1,922
0.7%
0.0%
Investments in associates
42
0.0%
42
0.0%
x
Property. plant and equipment and intangible assets
3,575
1.1%
3,344
1.1%
6.9%
Other assets
7,834
2.5%
13,143
4.5%
(40.4%)
Total assets
319,251
100.0%
294,552
100.0%
8.4%
(*) Cash and cash equivalents include cash in hand, amounts due from the National Bank of Poland, as well as amounts due from banks with a maturity of up to 3 months.
(**) Including non-treasury debt securities .
(***) Including financial assets held for trading, other financial instruments at fair value through profit and loss and excluding non-treasury debt securities .
31.12.2024
31.12.2023
EQUITY AND LIABILITIES
PLN MILLION
STRUCTURE
PLN MILLION
STRUCTURE
CHANGE
Amounts due to other banks
2,300
0.7%
2,826
1.0%
(18.6%)
Amounts due to customers
259,523
81.3%
232,307
78.9%
11.7%
Debt securities issued
6,542
2.0%
4,078
1.4%
60.4%
Subordinated liabilities
2,782
0.9%
2,781
0.9%
0.0%
Repo transactions
1,000
0.3%
1,649
0.6%
(39.4%)
Lease liabilities
695
0.2%
585
0.2%
18.8%
Other liabilities
14,893
4.7%
20,339
6.9%
(26.8%)
Equity
31,516
9.9%
29,987
10.2%
5.1%
Total equity and liabilities
319,251
100.0%
294,552
100.0%
8.4%
9.2.1 Assets
Changes in the structure of assets
Loans and advances to customers and securities represent items of the largest value under assets. As at the end of 2024, they accounted for 51.8% and 37.9% of the total assets respectively in comparison with 53.4% and 34.5% respectively as at the end of 2023.
Customers’ Financing
Customer structure of loans and advances
(in PLN million)
31.12.2024
31.12.2023
CHANGE
Loans and advances at nominal value (*)
169,262
162,324
4.3%
Loans and investments in financial leases
153,251
145,107
5.6%
Retail
81,181
76,309
6.4%
Corporate
72,070
68,798
4.8%
Non-treasury debt securities
16,011
17,217
(7.0%)
Other (**)
1,541
1,028
49.9%
Impairment allowances
(5,368)
(5,946)
(9.7%)
Total net receivables
165,435
157,406
5.1%
Reverse repo transactions
4,674
1,698
> 100%
Total Customers’ financing (***)
173,936
164,022
6.0%
(*) Excluding reverse repo transactions.
(**) Including interest and receivables in transit.
(***) Total customers’ financing includes loans and advances at nominal value, securities issued by non-monetary entities and reverse repo transactions.
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As at the end of December 2024, loans and advances at nominal value amounted to PLN 169,262 million, an increase of PLN 6.938 million, i.e. 4.3% in comparison to the end of December 2023.
As at the end of December 2024 , the volume of retail loans amounted to PLN 81,181 million, an increase of PLN 4.872 million, i.e. 6.4% in comparison to the end of December 2023 .
As at the end of December 2024, corporate loans and non-treasury debt securities amounted to PLN 88,081 million, an decrease of PLN 2,066 million, i.e. 2.4% in comparison to the end of December 2023.
Receivables and impairment losses (*)
(in PLN million)
31.12.2024
31.12.2023
CHANGE
Gross receivables
170,803
163,352
4.6%
Stage 1
145,634
140,074
4.0%
Stage 2
18,645
16,506
13.0%
Stage 3
6,524
6,772
(3.7%)
Impairment allowances
(5,368)
(5,946)
(9.7%)
Stage 1
(651)
(816)
(20.2%)
Stage 2
(849)
(820)
3.5%
Stage 3
(3,868)
(4,310)
(10.3%)
Total net receivables
165,435
157,406
5.1%
(*) Including non-treasury debt securities , interest and receivables in transit and excluding reverse repo transactions.
As at the end of December 2024 the ratio of impaired receivables (stage 3) to the gross receivables amounted to 3.8%.
Loans and advances to customers by currency (*)
31.12.2024
31.12.2023
PLN MILLION
STRUCTURE
PLN MILLION
STRUCTURE
CHANGE
Denominated in PLN
140,149
82.1%
132,731
81.3%
5.6%
Denominated in foreign currencies (**)
30,654
17.9%
30,621
18.7%
0.1%
Total
170,803
100.0%
163,352
100.0%
4.6%
Impairment allowances
(5,368)
x
(5,946)
x
(9.7%)
Total net receivables
165,435
x
157,406
x
5.1%
(*) Including non-treasury debt securities , interest and receivables in transit and excluding reverse repo transactions.
(**) Including indexed loans.
The currency structure of loans and advances to customers is dominated by amounts expressed in the Polish złoty; as at the end of December 2024, their share was 82.1%. The largest portion of foreign currency loans and advances to customers were represented by those denominated in EUR (85.5%), CHF (6.1%) and USD (6.9%).
Loans and advances to customers by contractual maturities (*)
31.12.2024
31.12.2023
PLN MILLION
STRUCTURE
PLN MILLION
STRUCTURE
CHANGE
Current and up to 1 month
20,508
12.0%
17,761
10.9%
15.5%
1 to 3 months
5,624
3.3%
7,285
4.5%
(22.8%)
3 months to 1 year
16,519
9.7%
18,324
11.2%
(9.9%)
1 to 5 years
55,834
32.7%
51,497
31.5%
8.4%
Over 5 years
68,332
40.0%
64,011
39.2%
6.8%
Past due
2,446
1.4%
3,446
2.1%
(29.0%)
Other
1,541
0.9%
1,028
0.6%
49.9%
Total
170,803
100.0%
163,352
100.0%
4.6%
Impairment allowances
(5,368)
x
(5,946)
x
(9.7%)
Total net receivables
165,435
x
157,406
x
5.1%
(*) Including non-treasury debt securities , interest and receivables in transit and excluding reverse repo transactions.
As at the end of December 2024, loans and advances with maturity over 5 years represents 40.0% of total loans and advances (mainly attributed to mortgage loans, investment loans, and non-treasury debt securities).
Information on loan concentration is included in the Note 19 to the Separate Financial Statements of Bank Pekao S.A. for the year ended on 31 December 2024.
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9.2.2 Liabilities
Changes in the structure of liabilities
Amounts due to customers were the main item under the Bank’s liabilities and equity. As at the end of 2024, amounts due to customers, debt securities issued and subordinated liabilities totaled PLN 268,847 million, and their share in the total assets was 84.2%, compared with 81.2% as at the end of 2023. The share of total shareholder’s equity in the total assets was 9.9% as at the end of 2024, compared with 10.2% as at the end of 2023.
External sources of financing
(in PLN million)
31.12.2024
31.12.2023
CHANGE
Amounts due to other banks
2,300
2,825
(18.6%)
Amounts due to customers
259,523
232,307
11.7%
Debt securities issued
6,542
4,078
60.4%
Subordinated liabilities
2,782
2,781
0.0%
Repo transactions
1,000
1,649
(39.4%)
Total external sources of financing
272,147
243,640
11.7%
The deposit base is widely diversified and is sourced from retail and corporate customers. In addition, the Bank uses also funds borrowed on the interbank market. The Bank is not dependent on any single customer nor group of customers.
Amounts due to customers and debt securities issued
(in PLN million)
31.12.2024
31.12.2023
CHANGE
Corporate deposits
109,670
100,234
9.4%
Non-financial entities
79,708
76,375
4.4%
Non-banking financial entities
9,791
6,584
48.7%
Budget entities
20,171
17,275
16.8%
Retail deposits
148,844
130,964
13.7%
Other (*)
1,008
1,110
(9.2%)
Amounts due to customers (**)
259,523
232,307
11.7%
Debt securities issued of which
9,324
6,859
35.9%
Senior bonds
6,457
4,014
60.8%
Subordinated bonds
2,750
2,750
0.0%
Interest
118
96
22.8%
Amounts due to customers and debt securities issued (**)
268,846
239,166
12.4%
Repo transactions
1,000
1,649
(39.4%)
Lease liabilities
695
585
18.8%
Amounts due to customers and debt securities issued, total (***)
270,541
241,401
12.1%
Investment funds of Pekao TFI S.A. (ex. Pioneer Pekao TFI)
32,189
24,228
32.9%
including distributed through the Bank’s network
27,414
20,206
35.7%
(*) Other item includes interest and funds in transit.
(**) Excluding repo transactions and lease liabilities.
(***) Including repo transactions and lease liabilities.
As at the end of December 2024, amounts due to the Bank’s customers and debt securities issued amounted to PLN 268,846 million, an increase of PLN 29,680 million, i.e. 12.4% in comparison to the end of December 2023.
The total volume of retail deposits, and other amounted to PLN 149,709 million as at the end of December 2024, an increase of PLN 17,798 million, i.e. 13.5% in comparison to the end of December 2023.
The total volume of corporate deposits, subordinated bonds, senior bonds interest and other amounted to PLN 119,138 million as at the end December 2024 an increase of PLN 11,883 million, i.e. 11.1% as compared to the end of December 2023.
The value of net assets of investment funds managed by Pekao TFI S.A. amounted to PLN 32,189 million as at the end of December 2024, an increase of PLN 7,961 million, i.e. 32.9% in comparison to the end of December 2023.
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Amounts due to customers by currency (*)
31.12.2024
31.12.2023
PLN MILLION
STRUCTURE
PLN MILLION
STRUCTURE
CHANGE
Denominated in PLN
216,466
83.4%
190,713
82,1%
13.5%
Denominated in foreign currencies
43,057
16.6%
41,594
17,9%
3.5%
Total
259,523
100.0%
232,307
100,0%
11.7%
(*) Including interest and amounts due in transit and excluding repo transactions and lease liabilities.
The bulk of the amounts due to customers are denominated in the Polish currency and its share as at the end of December 2024 amounted to 83.4%. The majority of amounts due to customers denominated in foreign currencies were in EUR (64.6%) and USD (29.3%).
Amounts due to customers by contractual maturities (*)
31.12.2024
31.12.2023
PLN MILLION
STRUCTURE
PLN MILLION
STRUCTURE
CHANGE
Current accounts and overnight deposits
187,107
72.4%
171,009
74,0%
9.4%
Term deposits
71,408
27.6%
60,188
26,0%
18.6%
Total deposits
258,515
100.0%
231,197
100,0%
11.8%
Interest accrued
639
x
634
x
0.8%
Funds in transit
369
x
476
x
(22.4%)
Total
259,523
x
232,307
x
11.7%
(*) Excluding repo transactions and lease liabilities.
Provisions, deferred tax assets and liabilities
(in PLN million)
31.12.2024
31.12.2023
CHANGE
Total provisions
2,164
1,854
16.7%
provisions for off-balance sheet commitments
519
552
(6.0%)
provisions for liabilities to employees
306
287
6.8%
other provisions
1 338
1 015
31.8%
Deferred tax liabilities
-
-
x
Deferred tax assets
964
777
24.1%
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Bank Pekao S.A.
9.3 The structure of the net profit
(in PLN million)
2024
2023
CHANGE
Net profit of Bank Pekao S.A.
6,425
6,799
(5.5%)
Entities consolidated under full method
Pekao Investment Management S.A.
168
95
76.8%
Pekao Leasing Sp. z o.o.
108
96
12.5%
Centrum Kart S.A.
10
3
> 100%
Pekao Financial Services Sp. z o.o.
10
7
42.9%
PEUF Sp. z o.o.
9
8
12.5%
Pekao Bank Hipoteczny S.A.
5
(109)
x
Pekao Direct Sp. z o.o.
3
3
0.0%
Pekao Investment Banking S.A.
3
14
(78.6%)
Pekao Fundusz Kapitałowy Sp. z o.o. w likwidacji
2
2
0.0%
Pekao Property S.A. w likwidacji
1
1
0.0%
FPB "MEDIA" Sp. z o.o. w upadłości
-
-
-
Pekao Faktoring Sp. z o.o.
(129)
13
x
Entities valued under the equity method
Krajowy Integrator Płatności S.A.
7
6
16.7%
Exclusions and consolidation adjustments (*)
(246)
(279)
(11.8%)
Net profit of the Group attributable to equity holders of the Bank
6,376
6,659
(4.2%)
(*) include exclusions and adjustments resulting from intra-Group transactions and the portion of the subsidiary's net profit attributable to non-controlling interests.
Results of the Bank’s major related entities
Pekao Investment Management S.A. – Pekao IM
Pekao IM's consolidated net profit in 2024, amounted to PLN 168 million , compared to PLN 95 million achieved in 2023. The result was influenced by the favorable situation on the capital market, encouraging clients to invest in investment funds, which translated into an increase in the value of assets managed by Pekao TFI.
Pekao Leasing Sp. z o. o. – Pekao Leasing
In 2024, Pekao Leasing generated a net profit of PLN 108 million compere to PLN 96 million in 2023. The higher result was achieved with a 7.3% increase in the value of leased assets.
Centrum Kart S.A. – Centrum Kart
In 2024, Centrum Kart achieved a net profit of PLN 10 million , compared to PLN 3 million achieved in 2023. The result was achieved by a significant increase in revenues from services provided to Bank Pekao S.A. with an inflationary increase in costs.
PeUF Sp. z o. o. – PeUF
In 2024, PeUF achieved a net profit of PLN 9 million , and was at a similar level compared to the previous year.
Pekao Financial Services Sp. z o.o. – PFS
In 2024, PFS generated a net profit of PLN 10 million (including the Bank's share of PLN 7 million ), compared to a profit of PLN 7 million achieved in 2023. The net result was higher due to the increase in PFS revenues as a result of the positive situation on the capital market and the optimization of the level of operating costs.
Krajowy Integrator Płatności S.A. – KIP
In 2024, KIP generated a net profit of PLN 18 million (of which PLN 7 million was included in the Group's result), compared to PLN 16 million achieved in 2023. The increase in the result is the result of further dynamic development of KIP's activity, a larger customer base, also as a result of the strategic partnership with the Bank.
Pekao Bank Hipoteczny S.A. – Pekao Bank Hipoteczny
In 2024, Pekao Bank Hipoteczny achieved a net profit of PLN 5 million , compared to a loss of PLN -109 million in 2023. The result of the current period was influenced by lower than in 2023 costs of legal risk of foreign currency mortgage loans related to the portfolio of mortgage loans denominated in CHF and costs related to the modification of PLN mortgage loan agreements granted to consumers due to their suspension of loan repayments (credit holidays).
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Pekao Direct Sp. z o.o. – Pekao Direct
In 2024, Pekao Direct generated a net profit of PLN 3 million and was at a similar level compared to the previous year.
Pekao Investment Banking S.A. – Pekao IB
In 2024, Pekao IB achieved a net profit of PLN 3 million , compared to a profit of PLN 14 million in 2023. The result was mainly influenced by lower income from investment banking services, also with a smaller number of completed projects compared to the previous year.
Pekao Faktoring Sp. z o. o. – Pekao Faktoring
In 2024, Pekao Faktoring reported a net loss of PLN - 129 million compared to PLN 13 million in 2023. The result of the credit risk management system (including a one-time write-off). Pekao Faktoring ranks second in turnover on the Polish factoring market.
9.4 Off–balance sheet items
Bank Pekao S.A. Group - Statement of Off-balance sheet items
(in PLN million)
31.12.2024
31.12.2023
CHANGE
Contingent liabilities granted and received
108 023
97 732
10,5%
Liabilities granted:
72 994
65 854
10,8%
financial
62 149
55 137
12,7%
guarantees
10 845
10 718
1,2%
Liabilities received:
35 029
31 878
9,9%
financial
1 396
452
>100%
guarantees
33 633
31 426
7,0%
Derivative financial instruments
457 320
530 320
(13,8%)
interest rate transactions
363 619
431 205
(15,7%)
transactions in foreign currency and in gold
86 882
94 698
(8,3%)
transactions based on commodities and equity securities
6 819
4 416
54,4%
Total off-balance sheet items
565 342
628 052
(10,0%)
Information on off-balance-sheet items is included in the N otes 40 to the Consolidated Financial Statements of Bank Pekao S.A. Group for the year ended on 31 December 202 4.
Bank Pekao S.A. - Statement of Off-balance sheet items
(in PLN million)
31.12.2024
31.12.2023
CHANGE
Contingent liabilities granted and received
131 323
120 167
9,3%
Liabilities granted:
97 886
88 615
10,5%
financial
66 185
57 888
14,3%
guarantees
31 701
30 727
3,2%
Liabilities received:
33 437
31 552
6,0%
financial
541
126
329,7%
guarantees
32 896
31 426
4,7%
Derivative financial instruments
458 240
531 872
(13,8%)
interest rate transactions
364 404
431 703
(15,6%)
transactions in foreign currency and in gold
87 017
95 753
(9,1%)
transactions based on commodities and equity securities
6 819
4 416
54,4%
Total off-balance sheet items
589 563
652 039
(9,6%)
Information on off-balance-sheet items is included in the Notes 38 to the Separate Financial Statements of Bank Pekao S.A. for the year ended on 31 December 2024.
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Bank Pekao S.A.
10. Other Information
Information required pursuant to Art. 111a of the Banking Law
Bank Pekao S.A. is a universal commercial bank providing a full range of banking services to individual and institutional clients in Poland. Bank Pekao S.A. Group includes financial institutions operating in banking, asset management, pension funds, brokerage services, transactional advisory, leasing and factoring markets.
The Bank and all subsidiaries of the Bank, within a consolidated basis under article 4, section 1, point 48 of the Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms, run its activities on territory of Poland.
As at the end of December 2024, the number of full-time jobs in the Group was 15,101 compared to 14,798 as at the end of 2023. As at the end of December 2024, the number of full-time jobs in the Bank was 12,602 compared to 12,447 as at the end of 2023.
In 2024, the Group’s operating income amounted to PLN 16,049 million, and was higher by 5.6% in comparison 2023.
In 2024, the Bank’s operating income amounted to PLN 15,290 million, and was higher by 4.3% in comparison 2023.
Profit before tax of Bank Pekao S.A. Group in 2024 amounted to PLN 8,123 million and was lower by PLN 442 million, in comparison to 2023. Income tax expense in 2024 amounted to PLN 1,744 million vs. PLN 1,904 million in 2023 and was lower by 8.4%.
Profit before tax of Bank Pekao S.A. in 2024 amounted to PLN 8,105 million and was lower by PLN 538 million in comparison to 2023. Income tax expense in 2024 amounted to PLN 1,680 million vs. PLN 1,844 million in 2023 and was lower by 8.9%.
As at the end of December 2024, the return on assets (ROA) of the Group was 2.0% vs. 2.2% at the end of December 2023.
As at the end of December 2024, the return on assets (ROA) of the Bank was 2.1% vs. 2.4% at the end of December 2023.
In 2024, the Bank do not conclude any agreements according to article 141t, section 1 of the Banking Law Act.
Management Board position regarding the possibility of achieving previously published forecasts
The Bank has not published the forecast of the financial results for 2024.
Information on significant agreements
In 2024, there have been no other significant agreements concluded by the Bank, in particular the Bank has not concluded material agreements with Central Bank or the competent supervision authorities.
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Management Board remunerations
The amount of remunerations or benefits (in cash, payments in kind or in any form) paid or due to the Management Board Members in 2024.
( in PLN thousand )
NAME
PERIOD
BASE SALARY
VARIABLE REMUNERATION (*)
OTHER BENEFITS (**)
Leszek Skiba
01.01.2024 - 08.11.2024 (***)
497
1 368
1 060
Jarosław Fuchs
01.01.2024 - 08.11.2024 (***)
481
1 362
1 141
Marcin Gadomski
01.01.2024 - 31.12.2024
1 352
1 346
33
Jerzy Kwieciński
01.01.2024 - 08.11.2024 (***)
481
1 149
1 047
Paweł Strączyński
01.01.2024 - 08.11.2024 (***)
481
1 070
1 078
Błażej Szczecki
01.01.2024 - 31.12.2024
1 352
1 156
49
Wojciech Werochowski
01.01.2024 - 08.11.2024 (***)
481
1 156
1 049
Piotr Zborowski
01.01.2024 - 08.11.2024 (***)
481
1 030
1 069
Magdalena Zmitrowicz
01.01.2024 - 26.12.2024 (****)
999
1 494
857
Cezary Stypułkowski
05.10.2024 - 31.12.2024
334
-
5
Dagmara Wojnar
18.07.2024 - 31.12.2024
616
-
16
Marcin Zygmanowski
02.11.2024 - 31.12.2024
222
-
1
Robert Sochacki
09.05.2024 - 31.12.2024
875
-
10
Anna Wawrzyńczak-Palynyczak
09.05.2024 - 04.10.2024
552
-
1
(*) The variable remuneration includes cash bonuses paid in 2024 for the years 2020, 2021, 2023 and phantom shares and benefits for the years 2019- 2022 resulting from the Variable Remuneration System.
(**) Other benefits include: severance pay for termination of the Management Services Agreement, compensation for non-competition, housing allowance, insurance policies, medical care.
(***) Person dismissed from the position in the Bank's Management Board with effect from 08.05.2024
(****) Person dismissed from the position in the Bank's Management Board with effect from 26.09.2024
The part of variable remuneration in phantom shares due to the current Members of the Bank's Management Board and remaining in retention amounts to 9.1 thousand shares. The value of this part of the variable remuneration as at 31 December, 2023 is PLN 1,256 thousand PLN according to the Bank's share price on 30 December, 2024, which is PLN 137.9
Members of the Bank's Management Board did not receive any remuneration in any form in 2024, nor do they have any receivables from the Bank's subsidiaries and associates.
Former Members of the Bank's Management Board remuneration
The value of variable remuneration paid to former Members of the Bank's Management Board who ceased to perform their functions in the Bank's Management Board before 1 January 2024 amounted to PLN 6,685 thousand in 2024.
The part of the variable remuneration in phantom shares due to former Members of the Bank's Management Board who held the position of members of the Bank's Management Board before 1 January, 2024 or during 2024 and remaining in retention amount to phantom 43 thousand shares.The value of this part of the variable remuneration as at 31 December 2024 is PLN 5,964 thousand at the Bank Pekao share price as at 30 December 2024 amounting to PLN 137.9
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Supervisory Board remunerations
The amount of remunerations or benefits (in cash, payments in kind or in any form) paid or due to the Supervisory Board Members in 2024:
( in PLN thousand )
PERIOD
TOTAL
Sabina Bigos-Jaworowska
01.01.2024 - 17.04.2024
82
Stanisław Kaczoruk
01.01.2024 - 17.04.2024
83
Michał Kaszyński
01.01.2024 - 17.04.2024
82
Marian Majcher
01.01.2024 - 17.04.2024
82
Marcin Izdebski
01.01.2024 - 17.04.2024
82
Beata Kozłowska-Chyła (***)
01.01.2024 - 17.04.2024
42
Małgorzata Sadurska (***)
01.01.2024 - 17.04.2024
41
Krzysztof Czeszejko-Sochacki
18.04.2024 - 31.12.2024
196
Jacek Nieścior
18.04.2024 - 31.12.2024
196
Radosław Niedzielski
18.04.2024 - 31.12.2024
193
Artur Nowak-Far
18.04.2024 - 31.12.2024
196
Magdalena Dziewguć
28.11.2024 - 31.12.2024
25
Witold Walkowiak
06.09.2024 - 31.12.2024
88
Robert Sochacki (*)
18.04.2024 - 09.07.2024
16
Anna Wawrzyńczak-Palynyczak (**)
18.04.2024 - 18.12.2024
73
Bartosz Grześkowiak
18.04.2024 - 31.12.2024
-
Artur Olech
18.04.2024 - 31.12.2024
-
(*) In the period from 09/05/2024 to 09/07/2024 he was delegated to the Bank's Management Board.
(**) In the period from 09/05/2024 to 04/10/2024 he was delegated to the Bank's Management Board.
(***) The person received remuneration from 24/02/2024 to 17/04/2024
In 2024, the Supervisory Board Members did not receive nor are due any compensation from subsidiaries and associated entities of Bank Pekao S.A.
Shares in the Bank and related entities held by the Bank's Directors
According to information available to the Bank as at the date of submitting of Report on the activities of Bank Pekao S.A. Group for 2024 and as at the date of submitting of Report on the activities of Bank Pekao S.A. Group for the third quarter of 2024 the Members of the Bank’s management and supervisory bodies did not held shares of Bank Pekao S.A.
As at 31 December 31, 2024, Mr. Artur Nowak - Far, Vice-Chairman of the Bank's Supervisory Board, held 200 shares in PZU S.A. with a nominal value of PLN 9,200 and 20 shares in Alior Bank S.A. with a nominal value of PLN 1,740.
Compensation for the Non-Competition after the termination of the Management Services Agreement
The following Members of the Bank's Management Board: Mr. Cezary Stypułkowski - President of the Management, Mr. Marcin Gadomski - Vice President of the Management Board, Mr. Marcin Zygmanowski - Vice President of the Management Board, Mr. Robert Sochacki - Vice President of the Management Board, Mr. Błażej Szczecki - Vice President of the Management Board, Ms. Dagmara Wojnar - Vice President of the Management Board, in accordance with the provisions in the Management Services Agreement, are obliged to comply with the Competition Prohibition and not to conduct competitive activities during the term of the agreement and for the period specified in the agreement after its termination.
In 2024, compensation was paid under the Non-Competition Agreement after the termination of the Management Services Agreement to the following members of the Bank’s Management Board:
Mr. Leszek Skiba - President of the Management, Mr. Jarosław Fuchs - Vice President of the Management Board, Mr. Jerzy Kwieciński - Vice President of the Management Board, Mr. Paweł Strączyński - Vice President of the Management Board, Mr. Wojciech Werochowski - Vice President of the Management Board, Mr. Piotr Zborowski - Vice President of the Management Board, Ms. Magdalena Zmitrowicz - Vice President of the Management Board.
Liabilities due to pensions for former supervisors and managers
In 2024, there were no liabilities arising from pensions and benefits of a similar nature for former managing and supervising persons (the Bank's Management Board and the Supervisory Board).
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Agreements with companies entitled to auditing of financial reports
The Company auditing the financial statements of the Bank Pekao S.A. and Bank Pekao S.A. Group for the years 2024-2028 is PricewaterhouseCoopers Polska Spółka z ograniczoną odpowiedzialnością Audyt Sp.k. based on the agreement of 28 June 2024 (together with subsequent annexes).
The Company auditing the financial statements of the Bank Pekao S.A. and Bank Pekao S.A. Group for 2023 was KPMG Audyt sp. z o.o. Sp.k. based on the agreement of 24 July 2018 (together with subsequent annexes).
The remuneration of the audit firm and its related entities for completed and planned services for the Bank Pekao S.A. Capital Group is presented in the table below:
(in PLN thousand)
2024
2023
Fee for the audit of annual financial statements
3 495
3 385
Fee for other attestation services, including review of financial statements
2 143
2 448
The amounts above do not include value added tax (VAT).
The remuneration of the audit firm and its related entities for completed and planned services for Bank Pekao S.A. is presented in the table below:
(in PLN thousand)
2024
2023
Fee for the audit of annual financial statements
2 089
2 469
Fee for other attestation services, including review of financial statements
1 829
1 952
The amounts above do not include value added tax (VAT).
Average interest rates in Bank Pekao S.A. in 2024
The average nominal interest rates for the basic types of PLN deposits for non-financial sector residents:
PLN retail deposits
1.9 p.a.
PLN corporate clients deposits
2.2 p.a
The average nominal interest rates for the PLN loans for non-financial sector residents:
Total retail loans
8,4% p.a.
mortgage
7,5% p.a.
consumption
11,7% p.a.
other
11,2% p.a.
Corporate loans
7,6% p.a.
Number and value of titles of execution and value of collaterals
Bank Pekao S.A. has established specific policy with regard to collateral accepted to secure loans and guarantees. This policy is reflected under internal rules and regulations in the Bank. The type of collateral and its value are carefully analyzed and chosen regarding the particular risk of the secured transaction.
The Bank obeys the rule, according to which the value of collateral should relate directly to the value of secured liability, that is cash provided by the Bank to a client (capital or the amount of off-balance sheet commitments granted by the Bank) together with extraneous amounts due, for example, interest or commissions.
In order to hedge risk related to lending activities the Bank accepts legal collateral under the Civil Code, the law on bills of exchange or resulting from the habits adopted in domestic or foreign trade, i.e. bank guarantees, guarantee under the Civil Code, blank of promissory notes, aval, transfer of debts, mortgages, registered pledges, pledges, assignment as collateral, transfer of assets in bank account, blockade assets on client’s account.
For corporate clients, the total value of the collateral for impaired transactions as at 31 December, 2024 amounted to PLN 1,222 million. For retail clients, the total value of the collateral for impaired transactions as at 31 December, 2024 amounted to PLN 769 million.
Pending litigations
Information on significant legal proceedings pending before courts, arbitration bodies or public administration authorities in respect of liabilities and receivables of the Bank and its subsidiaries is included in Note 40 to the Consolidated Financial Statements of Bank Pekao S.A. Group for the year ended on 31 December 2024.
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Seasonality or cyclical nature of the Bank’s activity
The demand for the financial services offered by the Bank is stable with no material impact of seasonal changes. Due to the nature of the Bank’s activity, it is not subject to seasonal or cyclical changes. Activities of other companies of the Bank Pekao S.A. Capital Group also does not show significant seasonal or cyclical characteristics.
Related party transactions
In the 2024, the Bank and its subsidiaries have not concluded any significant transactions (single or aggregate) with related entities other than those executed on arm’s length.
In the 2024, the Bank and its subsidiaries did not provide any sureties in respect of loans or advances or did not provide any guarantees to an entity or a subsidiary of such entity, which the total value would be significant.
Detailed information on related party transactions is included in Note 44 to the Consolidated Financial Statements of Bank Pekao S.A. Group for the year ended on 31 December 2024.
Accounting principles adopted in the preparation of the report
Accounting principles adopted in the preparation of the report are described in Note 4 to the Consolidated Financial Statements of Bank Pekao S.A. Group for the year ended on 31 December 2024.
Issuance, redemption and repayment of debt securities
Senior bonds
On April 3, 2023, the Bank issued senior non-preferred bonds (“SNP bonds”) with a maturity of 3 years and the total nominal value amounted to PLN 0.75 billion. The SNP bonds have an option giving the Bank the right to early redemption of the bonds within 2 years from the date of issue, subject to the approval of the Bank Guarantee Fund. The SNP bonds will constitute eligible liabilities of the Bank within the meaning of Article 97a (1) pt. 2) of the Act on the Bank Guarantee Fund, Deposit Guarantee System and Forced Restructuring of 10 June 2016. The bonds were admitted to trading on the alternative trading system Catalyst operated by the Warsaw Stock Exchange S.A.
On July 28, 2023, the Bank issued senior non-preferred bonds with a maturity of 4 years and the total nominal value amounted to PLN 0.35 billion (“SNP bonds”). The SNP bonds have an option giving the Bank the right to early redemption of the bonds within 2 years from the date of issue, subject to the approval of the Bank Guarantee Fund. The SNP bonds will constitute eligible liabilities of the Bank within the meaning of Article 97a (1) pt. 2) of the Act on the Bank Guarantee Fund, Deposit Guarantee System and Forced Restructuring of 10 June 2016. The bonds were admitted to trading on the alternative trading system Catalyst operated by the Warsaw Stock Exchange S.A.
On November 23, 2023, the Bank issued senior non-preferred eurobonds (“SNP eurobonds”) with a maturity of 4 years and the total nominal value amounted to EUR 0.5 billion. The SNP bonds have an option giving the Bank the right to early redemption of the bonds within 4 years from the date of issue, subject to the approval of the Bank Guarantee Fund. The SNP eurobonds will constitute eligible liabilities of the Bank within the meaning of Article 97a (1) pt. 2) of the Act on the Bank Guarantee Fund, Deposit Guarantee System and Forced Restructuring of 10 June 2016. The SNP eurobonds were issued under the Euro Medium Term Note Programme ("EMTN Programme") and were admitted to trading on the regulated market of the Luxembourg Stock Exchange and the Warsaw Stock Exchange S.A.
On April 26, 2024, the Bank issued senior non-preferred bonds with a maturity of 5 years and the total nominal value amounted to PLN 0.5 billion. The SNP bonds have an option giving the Bank the right to early redemption of the bonds within 4 years or 4,5 years from the date of issue, subject to the approval of the Bank Guarantee Fund. The SNP bonds will constitute eligible liabilities of the Bank within the meaning of Article 97a (1) pt. 2) of the Act on the Bank Guarantee Fund, Deposit Guarantee System and Forced Restructuring of 10 June 2016. The bonds were admitted to trading on the alternative trading system Catalyst operated by the Warsaw Stock Exchange S.A.
On 18 June 2024 the Management Board of the Bank adopted a resolution to use the option of early redemption of senior preffered bonds issued by Bank on 28 July 2023 with a total nominal value of PLN 0.75 billion. The early redemption took place on 28 July 2024 and in accordance with the regulations of the Central Securities Depository of Poland (KDPW).
On July 30, 2024, the Bank issued senior preferred bonds (“SP bonds”) with a maturity of 2,5 years and the total nominal value amounted to PLN 0.6 billion. The SP bonds have an option giving the Bank the right to early redemption of the bonds within 1,5 or 2 years from the date of issue, subject to the approval of the Bank Guarantee Fund. The SP bonds will constitute eligible liabilities of the Bank within the meaning of Article 97a (1) pt. 2) of the Act on the Bank Guarantee Fund, Deposit Guarantee System and Forced Restructuring of 10 June 2016. The bonds were admitted to trading on the alternative trading system Catalyst operated by the Warsaw Stock Exchange S.A.
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On September 24, 2024, the Bank issued senior non-preferred eurobonds with a maturity of 6 years and the total nominal value amounted to EUR 0.5 billion. The SNP eurobonds have an option giving the Bank the right to early redemption of the bonds within 5 years from the date of issue, subject to the approval of the Bank Guarantee Fund. The SNP eurobonds will constitute eligible liabilities of the Bank within the meaning of Article 97a (1) pt. 2) of the Act on the Bank Guarantee Fund, Deposit Guarantee System and Forced Restructuring of 10 June 2016. The SNP eurobonds were issued under the Euro Medium Term Note Programme ("EMTN Programme") and were admitted to trading on the regulated market of the Luxembourg Stock Exchange and on the regulated market of the Warsaw Stock Exchange S.A.
Subordinated bonds
On 30 October 2017 the Bank issued 10 years subordinated bonds with a total nominal value of PLN 1.25 billion. The funds from the issue were designated – after receiving the approval of the Polish Financial Supervision Authority on 21 December 2017 – to increase the Bank's supplementary capital pursuant to art. 127 para. 2 point 2 of the Banking Law and art. 63 of Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms . The bonds were admitted to trading on the alternative trading system Catalyst operated by the Warsaw Stock Exchange S.A .
On 15 October 2018 the Bank issued 10 years subordinated bonds with a total nominal value of PLN 0.55 billion. The funds from the issue were designated – after receiving the approval of the Polish Financial Supervision Authority on 16 November 2018 – to increase the Bank's supplementary capital pursuant to art. 127 para. 2 point 2 of the Banking Law and art. 63 of Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms . The bonds were admitted to trading on the alternative trading system Catalyst operated by the Warsaw Stock Exchange S.A .
On 15 October 2018 the Bank issued 15 years subordinated bonds with a total nominal value of PLN 0.20 billion. The funds from the issue were designated – after receiving the approval of the Polish Financial Supervision Authority on 18 October 2018 – to increase the Bank's supplementary capital pursuant to art. 127 para. 2 point 2 of the Banking Law and art. 63 of Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms . The bonds were admitted to trading on the alternative trading system Catalyst operated by the Warsaw Stock Exchange S.A .
On 4 June 2019 the Bank issued 12 years subordinated bonds with a total nominal value of PLN 0.35 billion. The funds from the issue were designated – after receiving the approval of the Polish Financial Supervision Authority on 8 July 2019 – to increase the Bank's supplementary capital pursuant to art. 127 para. 2 point 2 of the Banking Law and art. 63 of Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms . The bonds were admitted to trading on the alternative trading system Catalyst operated by the Warsaw Stock Exchange S.A .
On 4 December 2019 the Bank issued 12 years subordinated bonds with a total nominal value of PLN 0.40 billion. The funds from the issue were designated – after receiving the approval of the Polish Financial Supervision Authority on 10 December 2019 – to increase the Bank's supplementary capital. pursuant to art. 127 para. 2 point 2 of the Banking Law and art. 63 of Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms . The bonds were admitted to trading on the alternative trading system Catalyst operated by the Warsaw Stock Exchange S.A .
On 3 August 2022 the Management Board of the Bank adopted a resolution not to use the option of early redemption of subordinated bond issued by Bank on 30 October 2017 with a total nominal value of PLN 1.25 billion.
On 29 August 2023 the Management Board of the Bank adopted a resolution not to use the option of early redemption of subordinated bond issued by Bank on 15 October 2018 with a total nominal value of PLN 0.55 billion.
Pekao Bank Hipoteczny S.A. covered bonds
The total value of the company’s liabilities due to covered bonds amounted to PLN 1,428 million (principal value) as at the end of December 2024. Liabilities from covered bonds with maturity, up to 3 months account for 1%, up to 6 months account for 9%, up to 1 year account for 4%, up to 3 years account for 18%, up to 5 years account for 30%, up to 10 years account for 16%, total nominal value.
Pekao Bank Hipoteczny S.A. bonds
The total value of the company’s liabilities under bonds amounted to PLN 565 million (principal value) as at the end of December 2024 with maturity, up to 3 months account for 57%, up to 6 months account for 43%, total nominal value.
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Pekao Leasing Sp. z o.o. bonds
The total value of the company’s liabilities under bonds amounted to PLN 3,490 million (principal value) as at the end of December 2024 with maturity date up to 3 months account for 25%, up to 6 months account for 27%, up to 1 year for 19%, up to 2 years for 29%.
Pekao Faktoring Sp. z o.o. bonds
The total value of the company’s liabilities under bonds with maturity date to 3 months amounted to PLN 4,119 million (principal value) as at the end of September 2024 .
Subsequent events
From 1 January 2025 the Group applies Regulation (EU) 2024/1623 of the European Parliament and of the Council of 31 May 2024 amending Regulation (EU) No 575/2013 as regards requirements on credit risk, credit valuation adjustment risk, operational risk, market risk and a minimum capital threshold (hereinafter referred to as ‘CRR3’).
CRR3 introduces a number of significant modifications to the methods of calculating and reporting capital requirements, and these changes cover most of the areas taken into account in capital adequacy (including credit risk and counterparty credit risk, market risk, operational risk, CVA, prudential consolidation), also affecting the area of large exposures/concentration limits.
CRR3 has impact the Group’s capital adequacy mainly due to the need to include in the calculation of risk-weighted assets contracts that have been offered by the Group but have not yet been accepted by the client, changes in the scope of exposures secured by real estate and the introduction of the so-called new standardized approach (SMA) in the scope of operational risk.
The table below presents the impact of the application of CRR3 on the Group's capital adequacy:
BALANCE AS AT 31.12.2024
IMPACT OF CRR3 APPLICATION
AS AT 01.01.2025
Total capital ratio (%)
16.1%
16.6%
CRR3 has impact the Bank’s capital adequacy mainly due to the need to include in the calculation of risk-weighted assets contracts that have been offered by the Bank but have not yet been accepted by the client, changes in the scope of exposures secured by real estate and the introduction of the so-called new standardized approach (SMA) in the scope of operational risk.
The table below presents the impact of the application of CRR3 on the Bank's capital adequacy:
BALANCE
AS AT 31.12.2024
IMPACT OF CRR3 APPLICATION
AS AT 01.01.2025
Total capital ratio (%)
18.7%
19.3%
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Bank Pekao S.A.
11. Prospects for Development
11.1 Factors which will affect the results of the Group
The activity of Bank Pekao S.A. and the Group’s companies is in majority conducted on the Polish territory, hence the Group’s performance will be mainly affected by economic situation in the country and international events that have influence on domestic economy.
Poland's economic growth accelerated to 2.9% y/y in 2024. We estimate that after slowing down in Q3 last year, Polish GDP grew by 3.2% y/y between October and December. 2024 was marked by solid consumption (which added 3.2 pp to the growth rate), both public and private. For 2025, we expect economic growth to accelerate by one-third, i.e. to 4.0% y/y. This will be made possible by the fact that investment (8.6% y/y) will join the economic growth engines alongside consumption (2.9% y/y). Consumption dynamics will remain close to last year's due to decelerating real wages, which will only partly be offset by a lower propensity of households to save. At the same time, the acceleration in investment will be linked to the absorption of European funds from the Next Generation EU (NGEU) and the new EU budget perspective - in other words, public investment will accelerate while private investment dynamics will stabilise. The contribution of net exports will remain negative (-0.4 p.p.), but will improve with respect to last year due to the strengthening domestic demand in the euro area (that, in part, being a consequence of the monetary easing by the ECB).
CPI inflation will remain elevated in the first half of the year (5.3% y/y on average), but by the end of the year it will have fallen towards the upper end of the NBP target range (3.7% y/y). Due to statistical base effects, the annual peak in inflation will be in March 2025 at 5.6% y/y. Core inflation will be stubbornly elevated (3.9% y/y on average), partly due to sticky service prices. The persistence of core inflation will be a factor hindering the return of inflation to the target, which should not occur before 2026.
The key macroeconomic factor affecting the banking sector's financial performance is monetary policy. In line with our projections, 2024 passed with the NBP reference rate anchored at 5.75%. In the autumn last year, signals began to emerge from the MPC that – given that the March 2025 projection would also show inflation converging to the target in 2026 - there might be some space for interest rate cuts after first quarter of 2025. However, the MPC is now communicating concerns about the impact of regulatory factors on the CPI path in Poland, which means that the prospect of a monetary policy easing (-100 bps) is shifting to the second half of the year. This means that at least half of this year will pass in an environment of increased nominal interest rates, while the real cost of money will remain positive all throughout the year.
Although the government's housing loan subsidy programme (the so-called #NaStart programme) did not come into force, the situation in the credit market was improving in 2024. In particular, growth in the volume of PLN-denominated mortgages accelerated from 3.9% y/y in January to 8.9% y/y in November, and sales of new home loans increased by more than 35% y/y.In the first months of 2025, a slight deceleration in the dynamics of the volume of these loans can be expected due to a slightly lower number of loan applications submitted at the end of last year, but in the perspective of the following months, stable increases in real household income and the expected cuts in interest rates by the MPC will translate into a return of elevated housing credit dynamics. Demand for housing loan sales will also be bolstered by those customers who had decided to delay their loan decision in 2024 in anticipation of the #NaStart programme. In contrast, the volume of consumer loans grew at a slower pace than mortgages - nominal growth in this category is still weaker than in the pre-COVID-19 pandemic period. This is probably due to the increased depreciation of this portfolio, as consumer credit sales grew by as much as 27% year- on-year.
This year will be a period of more intense competition for corporate clients in the banking sector in terms of investment credit. The average annual increase in the corporate sector's investment outlays will exceed PLN 60 billion by the 2030 horizon. Financing investment of this scale - partly in an environment of still elevated interest rates - will support banking sector profits via increased interest income. On the other hand, competition between banks will entail slightly lower mark-ups.
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11.2 Strategic directions and business priorities
„Responsible Bank. Modern banking" is the strategy of Bank Pekao S.A. for the years 2021-2024.
In accordance with the strategic plans:
• we wanted to remain a universal bank,
• we strived to be the bank of first choice for an increasing number of our clients,
• we developed a remote distribution and customer service model,
• we focused on cost and process efficiency,
• we focused on growth in the most profitable market segments.
Our ambition was to maintain a strong position among the most profitable and effective banks in Poland, and our main strategic goals were:
• significant increase in return on equity (ROE),
• reduction of the cost to income ratio (C / I),
• increase in the number of active mobile banking clients from 2 million in 2020 to 3.2 million in 2024,
• digitization rate at the target level of ~100% in 2024.
The strategy was based on four pillars: Customer, Growth, Efficiency and Responsibility.
The „Customer” pillar
We focused on the customer and their needs, intensively developing digital channels and fast and convenient service processes. We aimed to enable customers to handle every matter online. The digitization rate of almost 100% was our key aspiration that we set for ourselves in the horizon of the Strategy 2021-2024. The target and main channel of contact with the customer was to be the PeoPay mobile application. We intended to use advanced data analytics and modern tools supporting sales to the greatest extent possible in order to personalize the offer, improve the quality of service and increase the willingness to recommend our services. The key measure of success that we aimed at was a systematic advancement in customer satisfaction rankings.
The „Growth” pillar
We focused on business growth in the most profitable market segments, product groups and areas of untapped potential that will improve profitability, i.e. consumer finance, microenterprises, SMEs and MID enterprises.
In the 2021-2024 Strategy, our aspiration was to acquire over 400,000 individual customers per year and increase our share in the cash loan market. And one of the key goals was to rejuvenate the demographic structure by acquiring a total of over 600 thousand customers under 26 years of age within the strategy horizon.
We wanted to strengthen our market position and increase our market share in the small and medium-sized enterprise segment and in the microenterprise segment.
We planned to strengthen business synergies and cooperation with PZU, which was to result in an increase in sales of insurance products and gross written premium.
In line with the Strategy, we strengthened our presence on the e-commerce market by providing cash loans to customers shopping online, as well as solutions for e-shops and e-commerce platforms enabling installment sales.
The „Efficiency” pillar
We focused on technological transformation and improving the efficiency of operations, accelerating digitalization and migration of processes to remote channels and optimizing credit processes. An important element of the Strategy was the expansion of the self-service zone for customers in remote channels. Our goal for the end of 2024 was for 80% of customers from the SME, MID and Corporate segments to use the self-service zone in digital channels.
We invested in and developed the following IT areas:technology and innovation,
• modern architecture,
• rapid software development,
• infrastructure reliability,
• people and competences.
We strived to optimize key credit processes, which translated into shortening the waiting time for a credit decision.
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The „Responsibility” pillar
We supported economic development by actively engaging in government and EU economic recovery programs and climate transformation. Our commercial and operational activities were based even more on sustainable development factors.
We sought to maintain a safe risk profile and one of the lowest risk costs among the largest banks. To this end, we took steps to improve the risk model infrastructure and automate credit assessment processes
Strategy execution in 2024
In 2024, we continued to implement the Bank's Strategy for 2021-2024 in a volatile macroeconomic environment, which was also characterized by an improvement compared to 2023, especially in terms of GDP growth. Driven by domestic consumption, GDP increased by 2.9%. The Polish economy was limited last year by a decline in exports, mainly due to the weakening of the global economic situation, but also by a relatively low level of investment. The level of inflation in 2024 was characterized by clear volatility and finally reached 4.7% y/y in December. The Bank's Strategy for 2021-2024 was prepared in an environment of historically low interest rates. Meanwhile, factors such as a series of increases that took place in 2021-2022 and the persistently high interest rates until the end of 2024 (an increase in the reference rate from 0.1% at the beginning of 2021 to 6.75% at the end of 2022, and after a reduction in October 2023, maintaining the level of 5.75%) significantly affected the Bank's interest income in 2022, 2023 and 2024.
Key strategic goals
We close 2024 with a financial result of PLN 6.4 billion and the overarching strategic objectives set out in the Strategy to date realised: rebuilt profitability as measured by ROE, improved cost discipline in relation to revenue by lowering the C/I ratio, increased number of mobile banking customers and progress in the digital transformation process as measured by the digitalisation ratio. The number of active mobile banking users increased systematically. At the end of 2024, it reached 3,4 million, 9% higher than a year ago and 24% higher than two years ago. Meanwhile, the digitisation of services resulted in an increase in the total digitalisation ratio from ~50% at the start of the Strategy to 97% in 2024.
KEY STRATEGIC GOALS:
ACHIEVED
IN 2024
ACHIEVED
IN 2023
2024 GOAL
ROE (%)
21,2%
25,0%
~10%
C/I %,(including to contributions to the BFG cost)
34,2%
31,7%
42%
Number of mobile banking customers (in million)
3,4
3,1
3,2
Total digitalization ratio (%)
97%
84%
~100%
The „Customer” Pillar
In the strategic pillar ‘Customer’, we continued to work intensively on developing the functionality of digital service channels, with a particular focus on mobile banking for retail customers. In 2024, we have introduced a number of new developments in Pekao24 e-banking, PeoPay and PeoPay Kids. We implemented, among others:
new functionalities of PeoPay and P24 applications:
• Skarbonka account, which supports saving for a selected purpose,
• presentation of customer insurance: PZU travel insurance, property insurance for Mortgage Loan (PZU), life insurance for Mortgage Loan (PZU), Credit Card with Żubr,
• new discount programme “Okazje z Żubrem” with attractive promotions and discounts,
• Miles & More programme registrations.
PeoPay and P24 process improvements:
• addition of geolocation in the parking payment service,
• public transport tickets available before logging in,
• improvements in payments and transfers: BLIK transfer request in PeoPay, possibility to send transfer confirmation directly to the e-mail indicated by the customer, “Make another transfer” function, display of transfer cost information,
• new and more functional chat and the presentation of customer advisor data.
development of functionalities for companies in PeoPay and P24:
• making credit products available to the business customer,
• making it easier to open a business with an account from within PeoPay,
• bank statements in JPK format, for business customers.
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options to increase security:
• PeoPay activation security - additional threat information content,
• two-factor logging into the Pekao24 service using the PeoPay app,
• the ability for clients to block the conclusion of credit agreements on the Pekao24 service and the PeoPay app and when entering into a relationship with the bank when opening an account,
• ‘Panic Button’ - one place to block channels and cards in a stressful situation,
• handling of PESEL number disclaimers in processes.
PeoPay Kids application development and Parent Panel:
• new seasons of educational games in the PeoPay KIDS app,
• expansion of the MC Debit FX card images available for teens 13+ to include the passion categories sports and music,
• expansion of the Parent Panel functions in terms of consents and declarations, changes to transaction limits, blocking access channels, changing card limits and managing access to teenager 13+ accounts.
Personalisation and ergonomics of PeoPay and Pekao24:
• Background personalisation options in PeoPay for sports-related passions and music personalisation and for private banking customers.
At the end of 2024, we achieved the aspiration assumed in the strategy regarding the number of active mobile customers in relation to the number of current accounts.
We increased sales of cash loans in remote channels by +27% y/y and the share of loans sold in electronic channels in 2024 was 85% compared to 83% in the previous year. The increase in customer activity in digital channels was also reflected in the results of the satisfaction measurement. PeoPay is one of the best-rated financial applications available in Google Play and AppStore. Bank Pekao is constantly developing a CRM system that, supported by a real-time data processing platform, advanced analytics and cloud solutions, provides customers with the most relevant offers and messages.
In 2024, we improved PekaoBiznes24. We provided clients with automatic downloads of JPKWB files, the ability to download electronic confirmations of balances at the end of the year, implemented information on a block due to the seizure of an account at the request of an enforcement body, presentation of the status of a foreign transfer in the SWIFT GPI format and expanded the functionality of currency transfers with online booking on weekends. We carried out a technological modernization of the system and implemented new security functionalities. In the second half of the year, we initiated the series of training courses in the form of webinars for our corporate clients on the security of navigating the network, which was very positively received by the participants. The number of corporate clients using direct integration of their F-K systems with the bank via the PekaoConnect service increased significantly.
The Bank continued the development of its offer and support for corporate clients by developing advanced digital tools. We are developing a modern currency exchange platform in Pekao24, PeoPay, PekaoBiznes24 and PeoBIZ, which provides customers with convenience and speed in making currency exchange transactions. The platform is intuitive and easy to use with a modern interface, design and customization capabilities.
In 2024, we simplified and shortened the transactional banking product documentation for corporate and enterprise customers and ensured a consistent and readable documentation layout, which translates into increased customer satisfaction and a shorter customer service process.
In response to the expectations of our customers, we have introduced cashless settlements in the following currencies: Mexican Peso (MXN) and Israeli New Shekel (ILS). The service is a full settlement service in the ILS and MXN currencies, which means the possibility of opening accounts in these currencies, ordering foreign transfers, intra-bank currency transfers and currency conversions from the PekaoBiznes24 system and other electronic banking systems. As one of the few banks in Poland, we also accept payments in both currencies in express mode. We therefore offer businesses the widest range of supported currencies and the best cut-off times on the market.
Moreover, we have expanded our presence in the local market. We have provided companies with new operational tools, e.g. the ability for companies and corporate clients to make cash deposits at post offices.
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The „Growth” pillar
In 2024, we opened 572 thousand accounts for individual customers maintaining high acquisition results and consolidating the lead in net account growth in Poland with +338 thousand - this is an increase of 6% y/y compared to the record year of 2023. In 2024, the value of cash loans granted measured by net volume increased to PLN 6,3 billion, up to +22% compared to 2023.
In 2024, in the area of bancassurance, we intensified marketing and promotional activities aimed, among other things, at raising customer awareness of the insurance products available in the Bank's offering and supporting sales of these products. We have achieved our strategic aspiration to double our gross written premium in 2024.
A significant impact on maintaining high sales of accounts in 2024 is the result of a very good offer of Konto Przekorzystne with gold card, high interest rate on Konto Oszczędnościowe and the promotion among parents of the establishment of the first account for a child as part of the campaigns such as the 800+ applications, Children's Day, Back to School or the Christmas offer. The bank also conducted intensive online marketing activities to support acquisition and building the image of the bank for the young customers.
In 2024, we conducted two large marketing campaigns supporting the sale of the Konto Przekorzystne with a Konto Oszczędnościowe and the “Otwórz się na PeoPay” mobile application. Thanks to the conducted marketing activities, almost every third new account was set up in the online process (using the selfie verification method and AIS - identity verification by logging in to another bank). We also achieved very good acquisition results among young customers up to 26 years of age, effectively rejuvenating Pekao's customer base. Our target was to acquire a total of over 600 thousand customers under 26 years of age in 2021-2024 - this goal was exceeded, as we acquired almost 650 thousand up to 26 years of age. In 2021- 2024, we opened 736 thousand accounts for the Young, including 190 thousand accounts in 2024.
2024 is also the year of new services and products. At the beginning of the year, we introduced and communicated to our customers, #Zrzutki, that is, a request for a BLIK transfer.
In the first quarter of 2024, adult Pekao customers received a new product to help them save regularly for their chosen goals in the form of #Skarbonka available in the PeoPay app and on the Pekao24 website. In the third quarter, the “Skarbonka” for teenagers (13-17 years) was also implemented.
The Bank actively supports the passions of its customers - sport, music, gaming. In June, ahead of the heightened sports and festival excitement, we implemented 20 new card images and backgrounds to its offer in the PeoPay application.
In 2024, new sales of financing for business customers in total (loans, leasing and factoring) amounted to PLN 2.9 million and were higher by +24% y/y. The increase in new sales of bank loans in the business segment in the reporting period by +14% y/y to PLN 1,3 billion was supported by attractive terms of the new offer related to the possibility of repaying liabilities from another bank and the development of the offer of loans with pre-examined creditworthiness for customers who can easily and quickly use overdraft limits, loans or credit cards.
In 2024, the Bank achieved very good sales results of mortgage loans meeting its targets and achieving a record result in mortgage sales, higher than the previous record of 2023, despite the end of the acceptance of applications for “Bezpieczny Kredyt 2%” under the government program „Pierwsze Mieszkanie”, which were the driving force of sales in the second half of 2023.
Mortgage loan sales amounted to PLN 11.3 billion, increasing by 9% compared to 2023. The results achieved allowed the Bank to strengthen its market position and in 2024 the Bank took 3rd place in terms of sales of mortgage loans in the banking sector and, in accordance with the assumed goal in the Strategy 2021-2024, is in the TOP3 in the mortgage segment.
In 2024, net sales of investment products exceeded the level of +17 billion PLN with a dynamics of +52% y/y. A significant increase was also recorded in the sales of Private Banking accounts to the level of over 1.2 thousand, i.e. +55% more than in the previous year. Assets covered by the investment advisory service in the Bank reached the level of PLN 3.7 billion.
Thanks to effective business activities aimed at strengthening existing competitive advantages and creating new ones in the SME and MID segments, we have consistently strengthened the Bank's position in this market. We offer our clients a wide, comprehensive range of products and services. such as bank loans, leasing, factoring, arranging issues of debt securities and other specialized forms of financing. We expand our offer with new product and functional solutions. In 2024, among others:
• new guarantee lines in cooperation with Bank Gospodarstwa Krajowego and European Investment Fund (Biznesmax Plus, Ekomax, Investmax) and tools supporting the acquisition of EU subsidies (EU subsidy search engine, compendium of knowledge about European funds, “Fundusze Europejskie z Żubrem” portal, the European Funds Forum),
• expansion of the credit offer available on the Bank's website and online banking system PekaoBiznes24,
• introduction of the Union loan, ecological loan and loan for financing biogas plants.
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We have maintained a high level of new customer acquisition, in the SME segment we acquired over 3 thousand customers and around 900 new customers in the MID segment.
In 2024, the value of new loans sold (excluding renewals) in the SME segment reached PLN 6.5 billion, maintaining the high level from the previous quarters and 2023. In the MID segment, the value of new loans sold amounted to PLN 13.6 billion.
In the corporate banking segment, we focus on growing individual business areas using modern tools that support the activities of advisors, product specialists and analysts. We have implemented and developed a modern and comprehensive system solution in the area of financial markets, supporting the front office, operations, risk, accounting and reporting areas – Murex system. It provides the ability to build automated and ergonomic business processes as well as operational and management processes and modern methods for measuring financial and counterparty risk, strengthening our position as an expert in Markets, Treasury and integrated risk management.
We have implemented a modern CRM One system, based on a public cloud computing model, providing support for advisors, product specialists and analysts in current sales and after-sales work. The system, in addition to direct sales and after-sales support, provides functionalities supporting process simplification, digitalization and process automation. CRM One presents information related to actions taken by business users, and also aggregates information from other systems, providing, among others, information on products used by the client, internal rating, information on financial data and transactionality. The new CRM One system is a strong support for the client centricity approach, including further improvement of customer service quality, building and strengthening long-term business relationships, which translates into both acquisition and x-sell.
By developing our long-term business relationships and building new ones, we engage in projects for corporate clients, the public sector, the commercial real estate sector and financial institutions, we develop transactional banking, treasury, investment banking, specialized financing and international banking, supporting our clients in their foreign expansion.
In 2024, we consistently strengthened our leading market position, as reflected in stable earnings results, market shares, unique product competencies and a number of industry awards.
The „Efficiency” pillar
The Bank continued strategy of robotization and automation of operational processes and also increased the efficiency of credit processes. In the fourth quarter of 2024, we made it possible for our customers to apply for a mortgage loan electronically, without having to come to a bank branch. A mortgage loan application at Bank Pekao can be submitted online via Pekao24 online banking and the PeoPay mobile application. Customers can conveniently apply for a loan from anywhere in the world, 24/7, with the assistance of a specialised helpline employee if necessary.
The development of remote distribution channels was accompanied by improvement in the effectiveness of the Bank's branch network. In 2024, the Bank reduced its branch network by 17 units. At the end of the year, the branch network consisted of 478 own branches and 95 partner branches.
One of the strategic directions defined in the „Efficiency” pillar is the acceleration of digitalization and migration of processes to remote channels, which includes not only retail banking customers, and the development of the PeoPay mobile application (as mentioned in the „Customer” pillar section), but also digital services for corporate customers. We have continued to develop
the self-service zone for corporate clients in the PekaoBiznes24 electronic banking, providing the ability to remotely establish relationships and service. We have developed the general availability functionality to offer customers the widest range of self- service and increase the quality of the banking services offered. In addition, as part of the development of the self-service zone in PekaoBiznes24, we have provided customers with a new process for applying for and purchasing closed cash services, and introduced improvements to the corporate card management process (e.g.: online presentation of card statuses, online management of card limits, automation of the card blocking process). We have made more improvements available in the general disposition, the opening of sub-accounts and in the “statement of company” application. We have enabled the most active clients to use the collective sending, cancelling and signing of multiple applications at the same time. We introduced a new version of the treasury product applications and also made a number of changes to the self-service area, enabling customers to reach the various self-service functionalities more quickly. We have also introduced a new certificate of account.
In 2024, we completed the migration of our corporate customers to a new mobile application called PeoBiz. Currently, the PeoBiz app is used by just under 20 thousand corporate customers. We've updated our mobile app several times this year to make it more attractive and easier for our customers to use. A simplified desktop, a new balance presentation, intuitive app navigation, new shortcuts, customer feedback and new functionality are just some of the improvements implemented for enterprise customers in 2024.
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The „Responsibility” pillar
In the ESG Strategy for 2021-2024, we have defined our goals regarding caring for the natural environment and supporting sustainable socioeconomic development, among others, through active participation in the development of the domestic renewable energy sector and organizing the issuance of green bonds.
In November 2024, we published an externally certified environmental allocation and impact report, in which we described the investments for which we allocated funds raised from the issue of green bonds, along with their respective environmental indicators. We achieved full allocation of mobilized funds by financing projects in five categories: renewable energy and energy efficiency, sustainable construction, clean transport, pollution management and control. In addition, we are constantly expanding our offer for companies in the area of supporting investments in green transformation - our proactive attitude was noticed and appreciated by the renowned Global Finance magazine: Bank Pekao S.A. was awarded the prestigious title "The Best Bank for Sustainable Finance in Central and Eastern Europe for 2024".
In parallel to developing the ability to support our clients in meeting their financial needs related to the global transformation towards sustainable development, we constantly strive to maintain a safe risk profile and one of the lowest risk costs among the largest banks on the Polish market. For this purpose, we take actions to improve the infrastructure of risk models and the automation of credit assessment processes. As a result, in 2024, the Group's risk costs amounted to 0.48%, while at the same time a high level of NPL coverage with write-offs. At the same time, we maintained a significant capital surplus above the regulatory minimum, which was reflected in the level of the Tier I ratio, which reached 16.1%.
Business priorities for 2025
Prospects for economic development (including, among others, stabilization of the pace of economic growth and consumption dynamics, decisions on monetary policy, changes in investment dynamics) will affect the demand for banking products and possible changes in the cost of risk. We monitor the development of the situation in the Bank's environment on an ongoing basis, including the direct and indirect effects of the war in Ukraine and global economic changes, and we adapt our activities to the observed challenges.
In 2025, one of the Bank's most important priorities will be to continue to work on growth in key segments and products, as well as on improving operational efficiency. To this end, we will implement a number of strategic initiatives covering both digital and process transformation and activities focused on acquiring new customers and strengthening current relationships. The Bank will continue to develop its cooperation with the PZU Group in the area of insurance and investment products.
2024 was the last year of Strategy „Responsible Bank. Modern banking" for the years 2021-2024. The Bank has the full capacity and readiness to implement the new strategy, which is now in the final stages of preparation and will be published in the first half of 2025 year.
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12. Statement of Bank Polska Kasa Opieki Spółka Akcyjna on compliance with corporate governance principles in 2024
Pursuant to § 70.6.5(a) and (b) of the Regulation of the Minister of Finance dated 29 March 2018 on current and periodic information published by issuers of securities and conditions for recognising as equivalent information required by the laws of a non-Member State 4 (hereinafter “Regulation of the Minister of Finance dated 29 March 2018), Bank Polska Kasa Opieki Spółka Akcyjna (hereinafter “Bank”) declares that it is subject to the sets of corporate governance principles indicated below, among which are the principles adopted for application on a voluntary basis and corporate governance practices that go beyond the requirements under domestic law. 5
The corporate governance principles applied at the Bank, i.e. the system of regulations and procedures defining guidelines for the actions of the Bank’s bodies, including towards external entities interested in the Bank’s activities (stakeholders), derive from generally applicable laws, in particular the Commercial Companies Code and the Banking Law, as well as the regulations governing the functioning of the capital market, and from the principles included in the documents: “Best Practice of WSE Listed Companies 2021”, Corporate Governance Principles for Supervised Institutions issued by the Polish Financial Supervision Authority on 22 July 2014 and the “Code of Banking Ethics of the Polish Bank Association”.
Subject to the information indicated below, in 2024 the Bank applied the corporate governance principles contained in the “Best Practice for WSE Listed Companies 2021” 6 (hereinafter “Best Practice 2021”) adopted by the Supervisory Board of the Warsaw Stock Exchange by Resolution No. 13/1834/2021 dated 29 March 2021.
The Bank did not comply with specific principles: 2.1; 2.2; 2.4 of the “Best Practice 2021” regarding the diversity policy and transparency of voting of the management board and the supervisory board.
Pursuant to § 29.3 of the Warsaw Stock Exchange Rules, the Bank, by means of Report No. 1/2021 of 4 August 2021, published Information on compliance by the Bank with “Best Practice 2021”, where the Bank provided explanations for complying with the aforementioned specific principles.
The Bank did not comply with specific principles 2.1. and 2.2. of the “Best Practice 2021”, pursuant to which the condition for ensuring the gender diversity of corporate bodies is the share of the minority in a given body at the level not lower than 30%.
The Bank has in place a “Gender equality and diversity policy with regard to the Bank’s employees, including Members of the Supervisory Board, Members of the Management Board and key function holders at Bank Polska Kasa Opieki Spółka Akcyjna” (hereinafter: “Policy”) approved by the Supervisory Board, which lays down diversity goals and criteria, including to the extent specified in the Best Practice for WSE Listed Companies 2021. The Policy being implemented by the Bank was developed taking into consideration requirements arising from generally applicable provisions of law, aimed at entities from the Banking sector, and recommendations of authorities exercising control and supervision over that sector, especially recommendations included in the Joint Guidelines of the European Banking Authority and the European Securities and Markets Authority on the assessment of the suitability of members of the management body and key function holders, pursuant to which the expected minimum share of representatives of an underrepresented gender in statutory bodies of the Bank must be clarified at the level of the Policy implemented by the Bank and, as a general rule, must be specified jointly for the Supervisory Board of the Bank and the Management Board of the Bank, as has been applied in the aforesaid Policy implemented by the Bank. In addition, on 15 June 2022, the OGM further clarified the Bank’s aspiration to achieve a ratio of 30% as a target minimum ratio of representatives of each gender on the Supervisory Board, and the Bank will strive to achieve this ratio at the earliest possible date, but not before the expiry of the term of office of the Supervisory Board.
The Bank also did not comply with specific principle 2.4. of the “Best Practice 2021”, pursuant to which votes of the supervisory board and management board must be open, unless provisions of law stipulate otherwise. The Bank does not share the view of the Corporate Governance Committee of WSE that, as a general rule, all resolutions adopted by the Management Board of the Bank and the Supervisory Board must be adopted in a transparent way, i.e. after they have been duly discussed and all members of the body have expressed their opinions. Therefore, both the Regulations of the Supervisory Board and the Regulations of the Management Board of the Bank provide for voting by open ballot, as a general rule, but include exceptions that permit a vote by secret ballot in cases stipulated by law and in other expressly mentioned cases:
1. The Regulations of the Supervisory Board stipulate that the Chair must order a vote by secret ballot only in one case, i.e. at the request of at least one member of the Supervisory Board, as an exception from the rule of open votes (§ 11.8 of the Regulations). The other provisions of the Regulations referring to a vote by secret ballot have already been repealed or amended by the Supervisory Board,
4 Journal of Laws of 2018, item 757, as amended.
5 § 70, paragraph 6, item 5, letters a and b of the Regulation of the Minister of Finance dated 29 March 2018.
6 The document is publicly available on the website of the Warsaw Stock Exchange: https://www.gpw.pl/dobre-praktyki
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2. the Regulations of the Management Board of the Bank stipulate that resolutions are to be adopted by open ballot. As an exception to this rule, the Regulations state that only in situations defined by law or in other justified cases, the President of the Management Board may order a secret ballot (§ 8.2 of the Regulations).
Due to the special nature of the banking sector, it is the opinion of the Bank that it is not possible to enumerate in law all situations in which a secret ballot would be the optimal solution from the perspective of corporate governance of the Bank. Therefore, the Bank does not completely exclude the option to vote by secret ballot in cases other than stipulated by law. The Bank has limited the aforesaid option to cases mentioned above, considering this solution as an optimal compromise between full transparency of the decision-making process at the Bank and the need to ensure that members of the Management Board of the Bank and the Supervisory Board are able to adapt to special circumstances.
By virtue of Report No. 1/2022 of 15 June 2022, the Bank updated the information on the status of application of the “Best Practice 2021” in view of the resolutions 32 and 34 adopted by the Ordinary General Meeting of the Bank.
In 2024 the Bank also applied the Corporate Governance Principles for Supervised Institutions issued by the Polish Financial Supervision Authority on 22 July 2014 7 with the exception of:
1. Chapter 9 concerning asset management at the customer’s risk, as the Bank does not pursue activity to this extent,
2. § 49.4 and § 52.2 due to the fact that the Bank has an internal audit unit and a compliance unit within its organisational structure.
The Bank maintained partial compliance with the principle set out in § 21.2 of the Principles, which concerns the composition of the supervisory body, with regard to the Chairperson of the Supervisory Board. The Chairperson of the Supervisory Board was selected based on the criteria of knowledge, experience, including in managing a governing team and skills confirming competencies necessary to duly perform supervisory duties. Considering the above, the criterion of independence was waived.
In 2024, the Bank applied the corporate governance principles contained in the Code of Banking Ethics of the Polish Bank Association. 8
The Bank adheres to compliance of its activities with generally applicable laws, the Bank’s Articles of Association, the Bank’s internal regulations, market standards and ethical standards.
Acting in accordance with § 70.6(5)(c - m) of the aforementioned Regulation of the Minister of Finance of 29 March 2018, the Bank presents the following information:
1. Description of the main features of the Bank’s internal control and risk management systems in relation to the process of preparing financial statements and consolidated financial statements 9
The Management Board of the Bank is responsible for developing and implementing an independent, adequate and effective Internal Control System, one of the objectives of which is to ensure the reliability of financial reporting .
As part of the Internal Control System, the Bank distinguishes:
1) the control function,
2) an independent compliance unit, i.e. Compliance Department whose task is to identify, evaluate, control, and monitor compliance risk in the Bank’s activities with regard to law regulations, internal regulations, and market standards, and to present reports in this scope,
3) an independent internal audit unit, i.e. Internal Audit Department whose task is to examine and assess, in an independent and objective manner, the adequacy and effectiveness of the Risk Management System and the Internal Control System, excluding its own activities as part of these systems.
The Supervisory Board exercises supervision over the implementation of the Internal Control System that is adequate and effective. The Supervisory Board performs an annual evaluation of the adequacy and effectiveness of the internal control system, including an annual evaluation of the adequacy and effectiveness of the control function, the compliance function, and the internal audit function.
The internal control system in the preparation of financial statements is designed to ensure that all business transactions in a given period are fairly, completely and correctly recorded.
7 The document is publicly available on the website of the Polish Financial Supervision Authority: https://www.knf.gov.pl/dla_rynku/regulacje_i_praktyka/zasady_ladu_korporacyjnego
8 The document is publicly available on the website of the Polish Bank Association: https://zbp.pl/Dla-Bankow/Prawo-i-legislacja/Komisja-Etyki-Bankowej
9 § 70, paragraph 6, item 5, letter c of the Regulation of the Minister of Finance dated 29 March 2018.
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In order to carry out the reporting process, the Bank has developed accounting principles (policies) in accordance with the requirements of the International Financial Reporting Standards and other applicable regulations, a chart of accounts, detailed internal instructions that define the rules for recording individual types of business transactions, and reporting systems.
At the same time, the Bank performs ongoing monitoring of changes in external regulations and conducts an assessment each time of the possible impact of these changes on accounting principles (policies) and reporting processes.
Information systems ensure the acquisition of clear and centralised data, confirming the entries in the accounting ledgers, as well as ensuring the control of continuity of entries, the transfer of turnovers and balances and the preparation of financial statements.
The Bank has a formalised process for closing the ledgers and preparing financial statements, in particular, it is based on an established schedule that defines the activities and the units responsible for their execution.
The preparation of financial statements, periodic financial and supervisory reporting and the provision of management information are the responsibility of the Financial Division, supervised by the Vice President of the Management Board of the Bank, and the individuals involved have relevant knowledge and experience in the area.
2. Indication of shareholders holding directly or indirectly significant blocks of shares, together with an indication of the number of shares held by these entities, their percentage share in the share capital, the number of votes arising therefrom and their percentage share in the total number of votes at the general meeting 10
The main shareholders of the Bank since 7 June 2017 are:
1) Powszechny Zakład Ubezpieczeń S.A., holding 52,494,007 (fifty-two million, four hundred and ninety-four thousand and seven) shares in the Bank, representing approximately 20% of the Bank’s share capital and entitling it to exercise 52,494,007 (fifty-two million, four hundred and ninety-four thousand and seven) votes representing approximately 20% of the total number of votes, and
2) Polski Fundusz Rozwoju S.A. holding 33,596,166 (thirty-three million five hundred and ninety-six thousand one hundred and sixty-six) shares in the Bank, representing approximately 12.8% of the Bank’s share capital and entitling it to exercise 33,596,166 (thirty-three million five hundred and ninety-six thousand one hundred and sixty-six) votes representing approximately 12.8% of the total number of votes.
Shareholders of the Bank holding directly or indirectly through subsidiaries at least 5% of the total number of votes at the Bank’s General Meeting:
NUMBER OF SHARES AND VOTES AT THE GENERAL MEETING
PARTICIPATION IN THE SHARE CAPITAL AND THE TOTAL NUMBER OF VOTES AT THE GENERAL MEETING
NUMBER OF SHARES AND VOTES AT THE GENERAL MEETING
PARTICIPATION IN THE SHARE CAPITAL AND THE TOTAL
NUMBER OF VOTES AT THE GENERAL MEETING
SHAREHOLDER’S NAME
AS AT 31 DECEMBER 2024
AS AT 31 DECEMBER 2023
Powszechny Zakład Ubezpieczeń S.A.
52,494,007
20.00%
52,494,007
20.00%
Polski Fundusz Rozwoju S.A.
33,596,166
12.80%
33,596,166
12.80%
Nationale-Nederlanden Otwarty Fundusz Emerytalny
16,834,767
6.41%
16,800,000
6.40%
Allianz Polska Otwarty Fundusz Emerytalny
14,140,661
5.39%
15,500,051
5.91%
Pozostali akcjonariusze (poniżej 5%)
145,404,433
55.40%
144,079,810
54.89%
Razem
262,470,034
100.00%
262,470,034
100.00%
3. Indication of holders of any securities that carry special control rights, with a description of those rights 11
According to the Bank’s Articles of Association, all existing shares of the Bank are ordinary bearer shares. There is no differentiation of shares in terms of the rights associated with them. There are no special privileges or restrictions attached to existing shares. The rights and obligations attached to the Bank’s shares arise from generally applicable laws, and in particular from the provisions of the Commercial Companies Code.
Securities issued by the Bank do not give their holders special control rights.
10 § 70, paragraph 6, item 5, letter d of the Regulation of the Minister of Finance dated 29 March 2018.
11 § 70, paragraph 6, item 5, letter e of the Regulation of the Minister of Finance dated 29 March 2018.
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4. Indication of any restrictions on the exercise of voting rights, such as restrictions on the exercise of voting rights by holders of a certain portion or number of votes, time restrictions on the exercise of voting rights, or provisions under which equity rights related to securities are separated from the holding of securities 12
The Bank’s Articles of Association do not stipulate any restrictions on the exercise of voting rights on the Bank’s shares (generally applicable laws may, in certain circumstances, restrict the exercise of a shareholder’s voting rights).
5. Indication of any restrictions on the transfer of ownership of the Bank’s securities 13
The Bank’s Articles of Association do not contain any restrictions on the transfer of ownership of the Bank’s securities (commonly applicable laws may, under certain circumstances, impose restrictions on the transfer of ownership of the Bank’s securities).
6. Description of the rules for the appointment and dismissal of managers and their powers, in particular the right to decide on the issuance or repurchase of shares 14
Management Board of the Bank
According to the Articles of Association, the Management Board of the Bank consists of 5 to 9 members. Vice Presidents and Members of the Management Board of the Bank are appointed and dismissed by the Supervisory Board, taking into account the assessment of compliance with suitability requirements. Members of the Management Board of the Bank are appointed for a joint three-year term of office. Members of the Management Board are appointed based on a qualification procedure aiming to verify and assess the qualifications of the candidates and to appoint the best candidate.
The Management Board of the Bank consists of: President of the Management Board of the Bank, Vice Presidents of the Management Board of the Bank, Members of the Management Board of the Bank. Vice Presidents and Members of the Management Board of the Bank are appointed and dismissed upon request of the President. The appointment of the President of the Management Board of the Bank and the Member of the Management Board of the Bank overseeing the management of risks significant to the Bank’s operations, or the assignment of this function to an appointed Member of the Management Board of the Bank, is subject to the approval of the Polish Financial Supervision Authority. The approval is requested by the Supervisory Board.
At least half of the members of the Management Board of the Bank, including the President of the Management Board of the Bank, should have a good knowledge of the banking market in Poland by fulfilling the following criteria together:
1) have professional experience gained on the Polish market, as appropriate to the managerial function performed at the Bank,
2) have a permanent place of residence in Poland,
3) have a good command of Polish.
The Management Board of the Bank handles the affairs of and represents the Bank. It is the duty of each Member of the Management Board of the Bank to take actions that are in the interest of the Bank. Members of the Management Board of the Bank may not take such actions or decisions that would give rise to a conflict of interest, or that would be contrary to the interests of the Bank or incompatible with their official duties. A Member of the Management Board of the Bank is obliged to inform the Management Board if a situation arises where a conflict of interest could arise or has arisen and to refrain from taking part in discussions and from voting on a resolution on a matter in which a conflict of interest has arisen.
Members of the Management Board of the Bank are entitled to rights under generally applicable law.
The Bank’s Articles of Association do not provide that the Management Board of the Bank or individual Members have the right to decide on the issuance or repurchase of shares.
12 § 70, paragraph 6, item 5, letter f of the Regulation of the Minister of Finance dated 29 March 2018.
13 § 70, paragraph 6, item 5, letter g of the Regulation of the Minister of Finance dated 29 March 2018.
14 § 70, paragraph 6, item 5, letter h of the Regulation of the Minister of Finance dated 29 March 2018.
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7. Description of the rules for amending the Bank’s Articles of Association 15
An amendment to the Bank’s Articles of Association requires the adoption of a resolution by the Bank’s General Meeting and registration of the adopted amendment in the National Court Register. The Regulations of the Bank’s General Meetings 16 set out detailed rules for the conduct of meetings and the adoption of resolutions. Resolutions of the Bank’s General Meeting regarding amendments to the Bank’s Articles of Association are adopted by a three-fourths majority. In addition, in accordance with Article 34(2) of the Banking Law, an amendment to the Bank’s Articles of Association requires permission from the Polish Financial Supervision Authority.
8. The manner of operation of the general meeting and its basic powers, as well as a description of the rights of shareholders and the manner of exercising them, in particular the principles arising from the regulations of the general meeting, if such regulations have been adopted, unless the information in this regard is directly derived from the law 17
The Bank’s General Meeting operates on the basis of the Regulations of the Bank’s General Meetings introduced by Resolution No. 19 of 8 April 2003, as amended by Resolution No. 41 of 5 May 2009, Resolution No. 41 of 1 June 2012 and Resolution No. 42 of 16 June 2016. The Regulations of the Bank’s General Meetings set forth detailed rules for the conduct of meetings and adoption of resolutions. The Regulations of the Bank’s General Meetings are available on the Bank’s website. 18
The powers of the Bank’s General Meeting, apart from other matters listed in the law, in particular in the Commercial Companies Code and the Banking Law Act, in supervisory recommendations of the supervisory authorities, as well as in the Bank’s Articles of Association, include:
1) reviewing and approving the report on the Bank’s activities, as well as the financial statements for the previous financial year,
2) adopting a resolution on profit distribution or loss coverage,
3) reviewing and approving the report on the activities of the Supervisory Board,
4) discharging the members of the Supervisory Board of the Bank and Management Board for the performance of their duties,
5) reviewing and approving the report on the activities and financial statements of the Bank’s Capital Group,
6) determining the dividend date and dividend payment date,
7) disposing and leasing the business or its separable standalone part or establishing limited proprietary rights over the same,
8) amending the Bank’s Articles of Association or establishing their consolidated text,
9) increasing or decreasing the Bank’s share capital,
10) issuing convertible or pre-emptive bonds and issuing subscription warrants,
11) redeeming shares and determining the terms of this redemption,
12) merging, demerging or liquidating the Bank,
13) creating and abolishing special funds,
14) appointing and recalling Members of the Supervisory Board, taking into account the assessment of compliance with suitability requirements,
15) determining the principles of remuneration for Members of the Supervisory Board,
16) entering into an agreement with a subsidiary providing for the management of the subsidiary or the transfer of profits by such a company,
17) other matters lying within the scope of the Bank’s operations, brought to the attention of the Bank’s General Meeting.
The Bank’s General Meeting is convened by an announcement made on the Bank’s website and in the manner specified for the submission of current information in accordance with the regulations on public offering and the conditions for introducing financial instruments into the organised trading system and on public companies. The announcement is made at least twenty- six days before the date of the Bank’s General Meeting.
15 § 70, paragraph 6, item 5, letter i of the Regulation of the Minister of Finance dated 29 March 2018.
16 Introduced by Resolution of the General Meeting No. 19 of 8 April 2003, as amended
17 § 70, paragraph 6, item 5, letter j of the Regulation of the Minister of Finance dated 29 March 2018.
18 https://www.pekao.com.pl/o-banku/lad-korporacyjny.html
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The Bank’s Ordinary General Meeting should be held once a year, no later than six months after the end of each fiscal year. When setting the date of the Bank’s General Meeting, the Management Board of the Bank ensures that the widest possible range of shareholders has the opportunity to participate in the Bank’s General Meeting.
The Articles of Association allow participation in the General Meeting by means of electronic communication, if the Management Board of the Bank decides so. The Management Board of the Bank makes the decision referred to in the preceding sentence in the event that the Bank meets the technical conditions necessary for participation in the General Meeting by means of electronic communication including, in particular:
1) real-time transmission of the General Meeting,
2) real-time two-way communication, whereby shareholders can speak in the course of the General Meeting while in a place other than the venue of the General Meeting,
3) exercising in person or by proxy of the right to vote before or during the General Meeting.
Pursuant to the Bank’s Articles of Association, whenever a General Meeting is convened, the Management Board of the Bank determines whether it is possible to participate in the General Meeting by means of electronic communication, and what requirements and limitations on such participation are necessary to identify shareholders and ensure the security of electronic communication. The detailed terms and conditions of participation in the General Meeting by means of electronic communication are set out in the Regulations to be adopted by the General Meeting, the notice convening the General Meeting and the Regulations for participation in the General Meeting of the company under the name of Bank Polska Kasa Opieki Spółka Akcyjna with its registered office in Warsaw by means of electronic communication adopted by Resolution No. 94/21 of the Supervisory Board of the Bank of 5 May 2021 on the adoption of the Regulations for participation in the General Meeting of the Company by means of electronic communication.
The Supervisory Board of the Bank may convene an Ordinary General Meeting of the Bank if the Management Board of the Bank fails to convene it within the timeframe specified in the Articles of Association, and an Extraordinary General Meeting of the Bank if it deems it advisable to convene it.
The full documentation to be presented to the Bank’s General Meeting, including draft resolutions and information concerning the Bank’s General Meeting, is made available to persons entitled to attend the Bank’s General Meeting through the Bank’s website and at the place indicated in the notice convening the General Meeting, published in accordance with Article 402² of the Commercial Companies Code.
Copies of the report of the Management Board of the Bank on the Bank’s activities and the financial statements, together with a copy of the report of the Supervisory Board and the auditor’s opinion, are issued to the shareholders upon their request no later than 15 days before the Bank’s General Meeting.
The main rights of the Bank’s shareholders are as follows:
1) shareholders representing at least half of the share capital or at least half of the total votes in the company may convene an Extraordinary General Meeting of the Bank. Then the shareholders appoint the chairman of this Meeting,
2) shareholders representing at least 1/20 of the share capital may demand that certain matters be placed on the agenda of the Bank’s next General Meeting. A request to place certain matters on the agenda should include a justification or a draft resolution on the proposed agenda item and should be submitted to the Management Board of the Bank no later than twenty-one days before the scheduled date of the Bank’s General Meeting. This request can also be made electronically. The Management Board is obliged to promptly, but no later than eighteen days before the scheduled date of the Bank’s General Meeting, announce changes to the agenda, introduced at the request of shareholders. The announcement is made in the manner appropriate for the convening of the Bank’s General Meeting,
3) shareholders representing at least 1/20 of the Bank’s share capital may, prior to the date of the Bank’s General Meeting, submit to the Bank, in writing or by means of electronic communication, draft resolutions on matters placed on the agenda of the Bank’s General Meeting or matters to be placed on the agenda. The Bank immediately announces draft resolutions on the Bank’s website,
4) each shareholder may, during the Bank’s General Meeting, propose draft resolutions on the issues on the agenda,
5) shareholders may attend the Bank’s General Meeting in person or by proxy,
6) at the request of shareholders holding one-tenth of the share capital represented at this General Meeting of the Bank, the attendance list should be checked by a committee selected for this purpose, consisting of at least three persons. Applicants have the right to choose one member of this committee,
7) The Bank’s General Meeting may not pass a resolution to remove from the agenda or not to consider an issue, placed on the agenda at the request of shareholders, without their consent,
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8) interruptions ordered in the proceedings of the Bank’s General Meeting must not be aimed at hindering shareholders from exercising their rights,
9) each participant in the Bank’s General Meeting has the right to propose one or more candidates for Members of the Supervisory Board of the Bank,
10) at the request of shareholders representing at least one-fifth of the share capital, the election of the Supervisory Board should be carried out by voting in separate groups. A request in this regard should be submitted to the Management Board in writing in time to be placed on the agenda of the Bank’s General Meeting,
11) shareholders may review the minute book and request copies of resolutions certified by the Management Board,
12) it is the duty of the Chairman of the Bank’s General Meeting to ensure that the rights and interests of all shareholders are respected, and in particular to ensure that the rights of minority shareholders are respected,
13) those objecting to the resolution will be given an opportunity to briefly justify their objection.
All matters brought to the Bank’s General Meeting have the opinion of the Supervisory Board. Pursuant to § 9 of the Bank’s Articles of Association, all matters brought to the Bank’s General Meeting should be submitted to the Supervisory Board for consideration in advance.
The Bank’s General Meeting should be attended by Members of the Management Board of the Bank and Supervisory Board in a composition that makes it possible to provide substantive answers to questions asked at the Bank’s General Meeting. An auditor should be present at the Bank’s General Meeting, the subject of which are the financial affairs of the Bank, in particular at the Bank’s General Meeting.
The Management Board of the Bank, as the body providing legal services for the Bank’s General Meetings, makes every effort to ensure that resolutions are formulated in a clear and transparent manner.
The Regulations of the Bank’s General Meeting of Shareholders contain provisions (§ 13 par. 10-17) for the election of the Supervisory Board by voting in separate groups.
Any amendments to the Regulations of the Bank’s General Meeting take effect as of the next General Meeting of the Bank.
The duties and powers of the Chairman of the General Meeting include, in particular, ensuring that the General Meeting proceeds smoothly and in accordance with the agreed agenda, and that the rights and interests of all shareholders are respected, in particular preventing the abuse of rights by the participants of the General Meeting and ensuring that the rights of minority shareholders are respected.
Members of the Supervisory Board and the Management Board, as well as the Bank’s auditor, within the limits of their competence and to the extent necessary for the resolution of matters discussed by the meeting, provide the participants of the Bank’s General Meeting with explanations and information concerning the Bank.
Voting on matters of order during the Bank’s General Meeting may only concern matters relating to the conduct of the meeting. Resolutions that may affect the exercise of shareholders’ rights are not put to a vote under this procedure.
Removal from the agenda or abandonment of consideration of an item placed on the agenda at the request of shareholders requires the Bank’s General Meeting to adopt a resolution by a three-fourths majority, with the prior consent of all shareholders present who have submitted such a request.
9. Description of the operation of the Bank’s management, supervisory or administrative bodies and their committees, together with an indication of the composition of these bodies and changes in them during the last fiscal year 19
Management Board of the Bank
The Management Board of the Bank operates on the basis of the Bank’s Articles of Association and the Regulations of the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna adopted by Resolution No. 64/II/19 of 25 February 2019, as amended by Resolution No. 92/III/20 of 12 March 2020, Resolution No. 153/IV/20 of 17 April 2020, Resolution No. 328/VII/20 of 24 July 2020, Resolution No. 3/I/22 of 5 January 2022, Resolution No. 31/I/23 of 23 January 2023 and Resolution No. 267/VI/24 of 18 June 2024. The Regulations set forth, in particular, the matters that require collegial consideration by the Management Board of the Bank and the rules for holding meetings of the Management, including meetings of the Management Board by means of direct remote communication, and the rules for adopting resolutions in writing or by means of direct remote communication. The Regulations of the Management Board of the Bank are available on the Bank’s website 20 .
19 § 70, paragraph 6, item 5, letter k and l of the Regulation of the Minister of Finance dated 28 March 2018.
20 https://www.pekao.com.pl/o-banku/lad-korporacyjny.html
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The Management Board of the Bank is of the opinion that the Regulations of the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna as a regulation defining the functioning of the Management Board is adequate and in compliance with the law and the requirements of the supervisory authorities.
According to the Bank’s Articles of Association, the Management Board of the Bank handles the affairs of and represents the Bank. The scope of duties of the Management Board of the Bank includes matters not reserved for other statutory bodies of the Bank under legal regulations or the Articles of Association.
In accordance with the provisions of the Regulations of the Management Board of the Bank, the Management Board of the Bank prepares the Bank’s development strategy. In addition, the Management Board prepares long-term development programs for the Bank and annual financial plans for the Bank, which are reviewed by the Supervisory Board. The Management Board of the Bank ensures the transparency and effectiveness of the risk management system and conducts the Bank’s affairs in accordance with legal regulations and Best Practice. The basis for the Bank’s management is professionalism, credibility, while customer relations are characterised by reliability and honesty, and conduct in accordance with applicable laws, including those governing anti-money laundering and terrorist financing. The Management Board of the Bank determines the principles and manner of implementation of, among other things, (i) the investment policy, (ii) the asset and liability management policy, (iii) the credit policy, (iv) the Bank’s personnel, payroll and social policies, and (v) the interest rate policy.
The Management Board of the Bank, in pursuit of the principle of efficient and prudent management of the Bank, is responsible for initiating and implementing programs to increase the Bank’s value, return on investment for shareholders, and protect the long-term interests of employees. In making decisions, the Management Board of the Bank makes every effort to ensure to the fullest extent possible that the interests of the Bank’s shareholders, creditors, employees, and other entities and persons cooperating with the Bank in its business activities are fulfilled. In the opinion of the Supervisory Board of the Bank, the activities undertaken by the Management Board of the Bank to perform its duties in 2024 were effective.
Members of the Management Board of the Bank are appointed by the Supervisory Board for a joint term of three years. The Management Board ensures the transparency and effectiveness of the management system and conducts the Bank’s affairs in accordance with legal regulations and Best Practice.
From 1 January to 8 May 2024 , the composition of the Management Board of the Bank was as follows:
Leszek Skiba President of the Management Board of the Bank. Since 2015, he served as Undersecretary of State at the Ministry of Finance, where he was responsible for overseeing macroeconomic policy and tax legislation. He supported legislative work related to financial and capital markets. He also prepared the concept for reforming the budget system. From March 2019 to April 2020, he served as Chairman of the Board of the Bank Guarantee Fund.
From 2009 to 2015, he worked for the National Bank of Poland at the Economic Institute, where he participated in the work on a report indicating the consequences of Poland’ membership in the euro area and prepared analyses on the euro area economy.
Since 2009, he has been active in non-profit public activities as Chairman of the Board and expert of the Sobieski Institute. Leszek Skiba graduated from the Warsaw School of Economics with a degree in International Economic and Political Relations. He is the author of numerous publications in the field of his professional work and public activities.
Leszek Skiba meets the suitability requirements set forth in Article 22aa of the Banking Law.
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Magdalena Zmitrowicz Vice President of the Management Board of the Bank. In 2018, she joined Bank Pekao S.A. as Managing Director of the Corporate Banking Department and was appointed Vice President of the Management Board of the Bank on 1 December 2018. She began her career in 1999 at Bank Handlowy in Warsaw S.A. in the Retail Banking sector, then in the Corporate Banking Division performing managerial functions in the Bank’s regional structures, including Sales Director of the Northern Region and at the Public Sector Department as Director of the Public Sector Office for the Regions. During her twenty years in banking, she has gained extensive experience both in the bank’s broad operations, including sales, risk, operations or the foreign exchange market, and in various customer segments, i.e. retail customers, small, medium and large enterprises, institutional and public sector customers or multinational corporations. From 2016 to 2017, she managed the Corporate Banking Department within Citigroup’s CEEMEA Commercial Banking Group. She headed the Strategy Champions Group within Bank Handlowy in Warsaw.
Member of the Supervisory Board of Pekao Leasing Sp. z o.o. since January 2019. Vice Chairwoman of the Supervisory Board of Pekao Faktoring Sp. z o.o. since December 2018, and Chairwoman of the Supervisory Board of the Company since March 2021.
Graduate of the Faculty of Social Sciences at the University of Gdańsk, postgraduate studies at the Faculty of Management at the University of Gdańsk and postgraduate Executive MBA (EMBA) studies organised at the Faculty of Management at the University of Warsaw. She has completed numerous training courses at home and abroad, including credit risk management, financial analysis and sales, among others. She graduated from Citigroup’s Commercial Credit College in the US New York in 2013. She also completed the Global CEO Program at IESE Business School & Wharton School University of Pennsylvania.
Magdalena Zmitrowicz meets the suitability requirements set forth in Article 22aa of the Banking Law.
Marcin Gadomski Vice President of the Management Board of the Bank supervising the management of significant risks in the Bank’s operations.
He holds a Master’s degree from the Warsaw School of Economics, majoring in Finance and Banking, and completed his doctoral studies at the Warsaw School of Economics. He was also a fellow at the University of Kiel, Germany. He has passed a number of certification exams, including: Financial Risk Manager (FRM), Association of Chartered Certified Accountants (ACCA), Project Management Professional (PMP), Certified Banking and Credit Analyst (CBCA). He participated in the Leadership Development Program conducted by The John Maxwell Team, as well as the Deloitte Leadership Program. He also completed the Global CEO Program at IESE Business School & Wharton School University of Pennsylvania.
Marcin Gadomski began his professional career at the consulting firm Ernst & Young (now EY) in 2002, where he carried out projects in the areas of risk, finance and internal audit in financial institutions and non-financial companies. He then spent his career with Deloitte Advisory, first as a Senior Manager from 2008 to 2012, and as a Director from 2016 to 2018.
As part of Deloitte Advisory, he provided solutions to major financial institutions in Poland and abroad in the areas of credit policy, risk models, credit process improvement for retail and corporate clients, market and liquidity risk management, accounting principles and regulatory requirements, due diligence for acquisitions, among others.
From 2012 to 2016, he served as Director of Credit Risk for Retail Banking at Bank Millennium. He was responsible for credit policy and credit scoring models for such business lines as unsecured consumer loans, mortgages, and small business loans.
From August 2018 to November 2019, he served as a Member of the Management Board of Pekao Bank Hipoteczny S.A. From 29 November 2019 to 21 April 2020, he served as Vice President of the Management Board of Pekao Bank S.A., where he was responsible for the Risk Management Division, and later served as Director of Credit Risk.
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As of 1 July 2020, he was reappointed to the Management Board of Bank Pekao S.A., where he is responsible for the Risk Management Division. On 15 February 2021, he received approval from the Polish Financial Supervision Authority to serve as a Member of the Management Board supervising the management of significant risks in the Bank’s operations.
Marcin Gadomski additionally sits on supervisory boards as Chairman of Pekao Bank Hipoteczny S.A., Deputy Chairman of the Board at Pekao Leasing Sp. z o.o., Pekao Investment Banking S.A., and is additionally Deputy Chairman of the Supervisory Board of Biuro Informacji Kredytowej S.A. and Member of the Supervisory Board of System Ochrony Banków Komercyjnych S.A.
Marcin Gadomski meets the suitability requirements set forth in Article 22aa of the Banking Law.
Jarosław Fuchs Vice President of the Management Board of the Bank. He graduated with honours from the AGH University of Science and Technology in Cracow, Faculty of Management, majoring in Management and Marketing, and from the Cracow University of Economics, Faculty of Economics, majoring in Finance and Banking. He graduated from the Executive MBA postgraduate program (EMBA) organised by the Faculty of Management at the University of Warsaw.
He began his career in 1994 at Big Bank S.A. and at the AGH University of Science and Technology in Cracow, where he served as an assistant at the Faculty of Management. From 1996 to 1997, he worked at Raiffeisen Centrobank S.A. Cracow Branch - he was responsible for building relationships with corporate clients.
Beginning in September 1997, Jarosław Fuchs worked at Société Générale Warsaw Branch as a senior marketing specialist in the Commercial Office in Cracow. Since October 2000, he was employed at Fortis Bank Polska S.A., where he served as a Senior Client Advisor in the Service Centre for Medium and Large Enterprises.
In March 2003, Jarosław Fuchs joined Bank Millennium S.A. as a Senior Expert, and then as Director of the Małopolska Customer Cooperation Centre (Medium and Large Enterprises). In August 2004, he joined Bank BPH S.A. in Cracow.
He has been with Bank Pekao S.A. since December 2007, where he initially held managerial positions in corporate client relationship management. Since March 2011, Jarosław Fuchs was responsible for managing relationships with private banking clients and managing a team of private banking advisors as Director of the Regional Sales Office in Cracow. At the same time, since 2013, Jarosław Fuchs was also employed at the Central Brokerage House of Bank Pekao S.A. as Director in the Region in the Office of Strategic Clients, exercising responsibility for the distribution of investment products to strategic clients. Jarosław Fuchs serves as Chairman of the Supervisory Board of Pekao Investment Management S.A.
Marcin Gadomski meets the suitability requirements set forth in Article 22aa of the Banking Law.
Jerzy Kwieciński, Ph.D. Vice President of the Management Board of the Bank, Graduate of the Faculty of Materials Engineering at Warsaw University of Technology and Doctor of Technical Sciences. He also completed postgraduate studies for executives at the Warsaw School of Economics and the international Master of Business Administration (MBA) program from the University of Antwerp, the University of Staffordshire, the Free University of Brussels and the University of Warsaw. Jerzy Kwieciński also has experience in academia and research and development, which he gained at the Warsaw University of Technology and as a visiting professor at Brunel University of West London, among others.
He has more than 30 years of international experience in strategic planning, managing large organisations, programs and projects in the public, private, non-governmental and scientific research sectors, including the energy industry.
From 1993 to 2004, he was an employee of the European Commission, at the Representation Office in Poland - managing programs and projects financed by European Union funds and participating in work preparing Poland for membership in the European
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Union. From 2004 to 2005, he was President of Europejskie Centrum Przedsiębiorczości sp. z o.o.,
He served as Vice President of the Management Board from 2008 to 2015. In 2005, he took up the position of Undersecretary of State at the Ministry of Regional Development, where he was in charge of coordinating the country’s development and cohesion policy and, among other things, preparing the National Development Strategy 2007-2015 and the National Cohesion Strategy 2007-2013. From 2008 to 2015, he served as the President of the Management Board of JP Capital Group sp. z o.o., which specialises in preparing and implementing ventures and innovative projects, including founding and running startups. During this time, he also ran the European Entrepreneurship Centre Foundation.
In 2015, he was appointed Secretary of State at the Ministry of Development. He has been a member of the National Development Council since 2015. In November 2015, he was appointed first deputy of the Deputy Prime Minister at the Ministry of Development. Since January 2018, he held the office of Minister of Investment and Development and, since September 2019, simultaneously the office of Minister of Finance, which he held until 15 November 2019. He was in charge of, among other things, the preparation and implementation of the Strategy for Responsible Development and the implementation of the Cohesion Policy. He served as President of the Management Board of Polskie Górnictwo Naftowe i Gazownictwo S.A. (PGNiG) from January to October 2020 and served on the Supervisory Boards of TUW Polski Gaz, Europolgaz S.A. and was Chairman of the Board of Directors of PGNiG Upstream Norway.
Jerzy Kwieciński sits on supervisory boards as Chairman of the Supervisory Board of Pekao Investment Banking S.A. and Member of the Supervisory Board of Pekao Leasing Sp. z o.o.
Jerzy Kwieciński meets the suitability requirements set forth in Article 22aa of the Banking Law.
Paweł Strączyński Vice President of the Management Board of the Bank. Graduate of the Wrocław University of Economics, Faculty of National Economy, majoring in finance and banking, and Master of Business Administration - Executive MBA with a specialisation in business management.
He has extensive managerial experience. He served as President of the Management Board of Tauron Polska Energia S.A. and was a member of the Governing Board of the Polish Electricity Committee. Previously, he was Vice President for Finance at PGE Polska Grupa Energetyczna S.A. He also served on the management boards of, among others: Zespół Elektrociepłowni Wrocławskich KOGENERACJA S.A., ZOWER Sp. z o.o., PGNiG Termika Energetyka Przemysłowa S.A., Przedsiębiorstwo Energetyki Cieplnej S.A. in Jastrzębie-Zdrój and the Polska Grupa Biogazowa S.A.
Paweł Strączyński additionally serves as a Member of the Supervisory Board of Krajowa Izba Rozliczeniowa S.A., a Member of the Board of Directors of KGHM International LTD based in Canada, and a Member of the Team of Economic Advisors to the Ministry of State Assets.
Paweł Strączyński meets the suitability requirements set forth in Article 22aa of the Banking Law.
Błażej Szczecki, Ph.D. Vice President of the Management Board of the Bank. Since 2004, he has been professionally involved with the Pekao S.A. Capital Group. From 2018 to 2021, he served as the Management Board’s Proxy for Transformation, and later also as the Management Board’s Proxy for Strategy, responsible for, among other things, overseeing digital and operational transformation and leading the work on the Bank’s Strategy. From 2017 to 2018, he headed the Bank’s Transformation and Services Division, managing, among other things, IT Operations. From 2010 to 2017, as a Member of the Management Board of Pekao Leasing, he was responsible for IT, Operations, Insurance, Customer Service, among other things.
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From 2004 to 2010, he held management positions in the Corporate Banking Division, participated in the preparatory work for the merger of Bank Pekao and Bank BPH. Before joining Pekao, he worked at the McKinsey consulting firm in Frankfurt am Main, Germany, was a researcher at the Universities of Frankfurt/Oder and Giessen, Germany, and gained work experience at Dresdner Bank.
He has served as Chairman of the Supervisory Board of Centrum Kart S.A. since 2017. From 2017 to August 2020, he sat on the Supervisory Board of Pekao Financial Services Sp. z o.o., serving as Deputy Chairman and Secretary of the Supervisory Board. He was reappointed to the Supervisory Board of Sp. z o.o. in March 2021 and currently serves as Chairman of the company’s Supervisory Board.
He holds a doctorate in economics and is also a graduate of the Faculty of Economic Sciences at the European University Viadrina in Frankfurt/Oder. He has completed a number of domestic and international training courses and programs, including, Unifuture in cooperation with the Institute for Management Development (IMD) in Lausanne, Switzerland.
Błażej Szczecki meets the suitability requirements set forth in Article 22aa of the Banking Law.
Wojciech Werochowski Vice President of the Management Board of the Bank. Manager with 20 years of experience in banking, he has been with Bank Pekao S.A. for 4 years, with the Retail Banking Division. Since December 2017, he served as director of the Consumer Credit Products Department, where he managed consumer credit products and was responsible for sales levels, portfolio quality and product performance and development.
Prior to joining Bank Pekao S.A., he worked at PKO Bank Polski, Bank Citi Handlowy and Bank BPH, responsible for the development and management of credit products, including mortgages, and the CRM function. From 2000 to 2008, he was associated with General Electric Capital in Poland, with GE Money Bank. He has worked in positions related to product management, new business model development, strategic price and financial management, Lean Six Sigma programs.
He holds a university degree and an MBA from the University of Gdańsk, Copenhagen Business School, Universiteit Antwerpen. He has completed training through the GE Management Development Institute, including Six Sigma Black Belt and Advanced Manager Course.
Serves as Chairman of the Supervisory Board of Pekao Direct Sp. z o.o. Member of the Supervisory Board of Pekao Bank Hipoteczny S.A. since April 2022.
Wojciech Werochowski meets the suitability requirements set forth in Article 22aa of the Banking Law.
Piotr Zborowski Vice President of the Management Board of the Bank. Graduate of the University of Warmia and Mazury in Olsztyn, Faculty of Law and Administration, majoring in law. He completed his legal advisor’s apprenticeship at the District Chamber of Legal Advisors in Warsaw. He holds an Executive Master of Business Administration degree.
At Bank Pekao S.A., he served as director responsible for the area of corporate body services and corporate governance and support for the work of the Management Board and Supervisory Board. He was involved in the process of building and implementing the Bank’s strategy, as well as implementing a number of strategic projects and cooperating on behalf of the Bank with the PZU S.A. group.
Previously, he worked in government agencies, among others: Office of the Prime Minister and the Ministry of State Assets, as Deputy Director of the Office of the Minister. He held advisory positions at the Military Property Agency and was responsible for organisational and legal supervision at the Military Trading Company.
From September 2022, he was appointed as a Member of the Supervisory Board of Pekao Bank Hipoteczny S.A.
Piotr Zborowski meets the suitability requirements set forth in Article 22aa of the Banking Law.
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On 8 May 2024, the Supervisory Board of Bank Polska Kasa Opieki Spółka Akcyjna passed resolutions to dismiss the Management Board of the Bank at the end of the day: Mr Leszek Skiba, Mr Jarosław Fuchs, Mr Jerzy Kwieciński, Mr Wojciech Werochowski, Mr Paweł Strączyński, Mr Piotr Zborowski.
The Supervisory Board also passed a resolution on the open selection procedure for the position of President and the positions of Vice Presidents of the Management Board of the Bank.
On 8 May, the Supervisory Board delegated the following Members of the Supervisory Board for a period of up to three months:
1) Mr Robert Sochacki to temporarily perform the duties of Vice President of the Management Board from 9 May 2024, with simultaneous assignment to direct the work of the Management Board, and
2) Mrs Anna Wawrzyńczak - Palynyczak to temporarily perform the duties of Vice President of the Management Board from 9 May 2024.
In view of the above, as of 9 May, the composition of the Management Board of the Bank was as follows:
1) Mr Robert Sochacki - Member of the Supervisory Board delegated to act as Vice President of the Management Board of the Bank,
2) Mr Marcin Gadomski - Vice President of the Management Board of the Bank,
3) Mrs Anna Wawrzyńczak-Palynyczak - Member of the Supervisory Board delegated to act as Vice President of the Management Board of the Bank,
4) Mr Błażej Szczecki - Vice President of the Management Board of the Bank,
5) Mrs Magdalena Zmitrowicz - Vice President of the Management Board of the Bank.
On 9 July 2024, the Supervisory Board of the Bank, through an open qualification process and after an assessment of suitability, appointed the following:
1) as of 5 October 2024, to the Management Board of the Bank for the current joint term of office, Mr Cezary Stypułkowski (i) as President of the Bank’s Management Board, subject to and upon approval of the Polish Financial Supervision Authority, but not earlier than 5 October 2024, (ii) and in the event that the approval of the Polish Financial Supervision Authority is not obtained by 5 October 2024, as Vice President of the Management Board of the Bank, until the condition set forth above is fulfilled, entrusting Mr Cezary Stypułkowski for that period with the management of the work of the Management Board of the Bank,
2) as of 10 July 2024, Mr Robert Sochacki to the Management Board of the Bank for the current joint term of office as Vice President of the Management Board of the Bank,
3) as of 18 July 2024, Mrs Dagmara Wojnar to the Management Board of the Bank for the current joint term of office as Vice President of the Management Board of the Bank.
In accordance with the declarations submitted, none of the newly appointed Members of the Management Board of the Bank will, as of the date of taking office, engage in any activity that is competitive with the Bank, in particular, none will have the status of a partner in a civil partnership, partnership or capital company that is competitive with the Bank, nor will serve as a member of a body of another legal entity that is competitive with the Bank, nor will conduct their own business that is competitive with the Bank. None of the newly appointed Members of the Management Board of the Bank is listed in the Register of Insolvent Debtors, maintained pursuant to the Act of 20 August 1997 on the National Court Register.
In addition, until the appointment of Mr Cezary Stypułkowski to the Management Board of the Bank, the work of the Management Board was managed by Mr Robert Sochacki, Vice President of the Management Board.
In connection with his appointment to the Management Board of the Bank, Mr Robert Sochacki resigned from the Supervisory Board of the Bank effective 9 July 2024.
Accordingly, as of 18 July, the composition of the Management Board of the Bank was as follows:
1) Mr Robert Sochacki - Vice President of the Management Board of the Bank in charge of the Management Board,
2) Mr Marcin Gadomski - Vice President of the Management Board of the Bank,
3) Mrs Anna Wawrzyńczak-Palynyczak - Member of the Supervisory Board delegated to act as Vice President of the Management Board of the Bank,
4) Mr Błażej Szczecki - Vice President of the Management Board of the Bank,
5) Mrs Dagmara Wojnar - Vice President of the Management Board of the Bank,
6) Mrs Magdalena Zmitrowicz - Vice President of the Management Board of the Bank.
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On 9 August 2024, the Supervisory Board adopted a resolution to delegate a Member of the Supervisory Board of the Bank, Mrs Anna Wawrzyńczak-Palynyczak, to act as Vice President of the Management Board of the Bank for the period from 10 August 2024 to 10 September 2024, subject to the possibility of earlier termination of the delegation.
The aforementioned resolution came into effect upon adoption.
According to the statement submitted, Member of the Supervisory Board of the Bank, Mrs Anna Wawrzyńczak-Palynyczak, does not conduct any activity competitive to the Bank, does not participate in a competitive company as a partner in a civil partnership, partnership or a capital company, and does not participate in a competitive legal entity as a member of its body. According to the statement submitted, Member of the Supervisory Board, Mrs Anna Wawrzyńczak-Palynyczak, is not registered in the Register of Insolvent Debtors kept pursuant to the provisions of the Act of 20 August 1997 on the National Court Register.
On 10 September 2024, the Supervisory Board adopted a resolution to delegate a Member of the Supervisory Board of the Bank, Mrs Anna Wawrzyńczak-Palynyczak, to act as Vice President of the Management Board of the Bank for the period from 11 September 2024 to 4 October 2024, subject to the possibility of earlier termination of the delegation. The resolution came into effect upon adoption.
On 26 September 2024, the Supervisory Board of the Bank, as part of an open qualification procedure and after an assessment of suitability, appointed Mr Marcin Zygmanowski to the Management Board of the Bank for the current joint term of office, effective 2 November 2024, as Vice President of the Management Board of the Bank.
In accordance with the declaration submitted, Mr Marcin Zygmanowski will not, as of the date of taking office, engage in any activity that is competitive with the Bank, in particular, will not have the status of a partner in a civil partnership, partnership or capital company that is competitive with the Bank, nor will serve as a member of a body of another legal entity that is competitive with the Bank, nor will conduct own business that is competitive with the Bank. Mr Marcin Zygmanowski is not listed in the Register of Insolvent Debtors, maintained pursuant to the Act of 20 August 1997 on the National Court Register.
On 26 September 2024, the Supervisory Board of the Bank dismissed the Vice President of the Management Board of the Bank, Mrs Magdalena Zmitrowicz, from the Management Board of the Bank.
Accordingly, as of 26 September, the composition of the Management Board of the Bank was as follows:
1) Mr Robert Sochacki - Vice President of the Management Board of the Bank in charge of the Management Board,
2) Mr Marcin Gadomski - Vice President of the Management Board of the Bank,
3) Mrs Anna Wawrzyńczak-Palynyczak - Member of the Supervisory Board delegated to act as Vice President of the Management Board of the Bank,
4) Mr Błażej Szczecki - Vice President of the Management Board of the Bank,
5) Mrs Dagmara Wojnar - Vice President of the Management Board of the Bank.
On 5 October 2024, Mr Cezary Stypułkowski began to perform the role of Vice President of the Management Board of the Bank leading the work of the Management Board.
As of 5 October, the composition of the Management Board of the Bank was as follows:
1) Mr Cezary Stypułkowski - Vice President of the Management Board of the Bank in charge of the Management Board,
2) Mr Robert Sochacki - Vice President of the Management Board of the Bank,
3) Mr Marcin Gadomski - Vice President of the Management Board of the Bank,
4) Mr Błażej Szczecki - Vice President of the Management Board of the Bank,
5) rs Dagmara Wojnar - Vice President of the Management Board of the Bank.
As of 2 November, the composition of the Management Board of the Bank was as follows:
1) Mr Cezary Stypułkowski - Vice President of the Management Board of the Bank in charge of the Management Board.
2) Mr Robert Sochacki - Vice President of the Management Board of the Bank,
3) Mr Marcin Gadomski - Vice President of the Management Board of the Bank,
4) Mr Błażej Szczecki - Vice President of the Management Board of the Bank,
5) Mrs Dagmara Wojnar - Vice President of the Management Board of the Bank,
6) Mr Marcin Zygmanowski - Vice President of the Management Board of the Bank.
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On 8 November 2024, the Polish Financial Supervision Authority unanimously approved the appointment of Cezary Stypułkowski as President of the Management Board of the Bank.
The Supervisory Board of the Bank appointed Mr Cezary Stypułkowski as President of the Management Board of the Bank as of 5 October 2024, subject to and upon approval by the Polish Financial Supervision Authority. Until this approval was obtained, Mr Cezary Stypułkowski served as Vice President of the Management Board of the Bank in charge of the Management Board of the Bank. Receipt of the Polish Financial Supervision Authority’s approval means fulfllment of the condition from the resolution of the Supervisory Board of the Bank 9 July 2024, and thus Mr Cezary Stypułkowski assumes the position of the President of the Management Board of the Bank as soon as the Polish Financial Supervision Authority’s approval is obtained.
Cezary Stypułkowski President of the Management Board of the Bank.
From 2010 to 2024, President of mBank S.A. He serves as Deputy Chairman of the Council of the Polish Bank Association and chairs the Large Banks Section at the Polish Bank Association. He has served on MasterCard’s international board of advisors since 2022. In October 2024, he joined the Council of the Institute of International Finance (IIF) in Washington, D.C., the most important global organisation of the financial industry, bringing together nearly 500 major players from more than 60 countries. Since 2012, he has served as co-chairman of the Emerging Markets Advisory Council of the IIF.
From 2006 to 2010, he worked at J.P. Morgan in London, where he was managing director of J.P. Morgan’s investment bank for Central and Eastern Europe from 2007.
He served as the President of the Management Board of the PZU Group from 2003 to 2006, and headed the Management Board of Bank Handlowy S.A. in Warsaw from 1991 to 2003.
He was a member of the international advisory board of Deutsche Management Board of the Bank, J.P. Morgan’s European Council of Advisors, INSEAD’s international advisory board and a member of the Geneva Association.
He holds a doctorate in law from the University of Warsaw. In the late 1980s, as a Fulbright scholar, he studied at the Business School of Columbia University in New York.
Cezary Stypułkowski meets the suitability requirements set forth in Article 22aa of the Banking Law.
Dagmara Wojnar Vice President of the Management Board of the Bank. A graduate in banking from the Cracow University of Economics and a Multinational MBA from ESADE in Spain with qualifications as a chartered accountant and FCCA. She has completed a number of development programs at leading business universities (including INSEAD, London Business School).
She has more than 20 years of experience in the financial sector, including more than 10 years in bank financial management. She has worked for some of the largest banking institutions in Poland, executing significant transactions for the sector.
From 2022 to 2024, as an Associate Partner at KPMG, she was responsible for advisory services to chief financial officers. From 2010 to 2022, she managed the Controlling/MIS area at Santander Bank Poland, where she implemented a number of significant financial management projects. She has been a member of decision-making committees at the bank, as well as a member of supervisory boards. Between 2000 and 2010, while working at KPMG, she participated in projects for the financial sector on auditing financial statements, valuation to fair value of loan portfolios, due diligence and advising on M&A transactions.
Promoter of finance and business partnerships. Leader building loyal and committed teams.
Dagmara Wojnar meets the suitability requirements set forth in Article 22aa of the Banking Law.
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Marcin Gadomski Vice President of the Management Board of the Bank supervising the management of significant risks in the Bank’s operations.
He holds a Master’s degree from the Warsaw School of Economics, majoring in Finance and Banking, and completed his doctoral studies at the Warsaw School of Economics. He was also a fellow at the University of Kiel, Germany. He has passed a number of certification exams, including: Financial Risk Manager (FRM), Association of Chartered Certified Accountants (ACCA), Project Management Professional (PMP), Certified Banking and Credit Analyst (CBCA). He participated in the Leadership Development Program conducted by The John Maxwell Team, as well as the Deloitte Leadership Program.
Marcin Gadomski began his professional career at the consulting firm Ernst & Young (now EY) in 2002, where he carried out projects in the areas of risk, finance and internal audit in financial institutions and non-financial companies. He then spent his career with Deloitte Advisory, first as a Senior Manager from 2008 to 2012, and as a Director from 2016 to 2018. As part of Deloitte Advisory, he provided solutions to major financial institutions in Poland and abroad in the areas of credit policy, risk models, credit process improvement for retail and corporate clients, market and liquidity risk management, accounting principles and regulatory requirements, due diligence for acquisitions, among others.
From 2012 to 2016, he served as Director of Credit Risk for Retail Banking at Bank Millennium. He was responsible for credit policy and credit scoring models for such business lines as unsecured consumer loans, mortgages, and small business loans.
From August 2018 to November 2019, he served as a Member of the Management Board of Pekao Bank Hipoteczny S.A. From 29 November 2019 to 21 April 2020, he served as Vice President of the Management Board of Pekao Bank S.A., where he was responsible for the Risk Management Division, and later served as Director of Credit Risk. As of 1 July 2020, he was reappointed to the Management Board of Bank Pekao S.A., where he is responsible for the Risk Management Division. On 15 February 2021, he received approval from the Polish Financial Supervision Authority to serve as a Member of the Management Board supervising the management of significant risks in the Bank’s operations.
Marcin Gadomski additionally sits on supervisory boards as deputy chairman of the Board at Pekao Leasing Sp. z o.o., Pekao Investment Banking S.A. and as chairman of the Supervisory Board of Pekao Bank Hipoteczny S.A. In addition, he is a member of the Supervisory Board of Biuro Informacji Kredytowej S.A. and Member of the Supervisory Board of System Ochrony Banków Komercyjnych S.A.
Marcin Gadomski meets the suitability requirements set forth in Article 22aa of the Banking Law.
Robert Sochacki Vice President of the Management Board of the Bank. Graduate of Warsaw University of Technology and a Canadian Executive MBA. Certified Financial Analyst - CFA (Chartered Financial Analyst). He also graduated from the IESE Business School - Advanced Management Program.
He has been involved in the financial market for nearly 30 years.
From April 2015 to May 2024, CEO of President of the Management Board of Beta Securities Poland S.A. - a company that supports the development of ETFs in Poland. Previously, from July 2011 to April 2014, he was a Member of the Management Board of Opera TFI SA (where he was responsible for the private investment area - private equity) and Opera Dom Maklerski. From June 2007 to June 2011 - Vice President of the Management Board of Bank Gospodarstwa Krajowego (responsible for overseeing the areas of financial markets, investment project financing and sales). In addition, he worked at PKO Bank Polski S.A. as deputy director of the Treasury Department and at Credit Lyonnais Bank Poland, where he led the sales team in the Treasury Department.
He has many years of experience on the supervisory boards of capital companies. He served on the supervisory boards of: Agiofunds TFI SA (member of the Risk Committee), PEKAES SA (member of the Audit Committee), SEKO S.A. (member of the Audit Committee), Krajowy Fundusz Kapitałowy S.A., KUKE S.A.
He was a lecturer at the Warsaw Institute of Banking. He has completed numerous trainings and courses in banking, management and finance.
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Robert Sochacki meets the suitability requirements set forth in Article 22aa of the Banking Law.
Błażej Szczecki, Ph.D. Vice President of the Management Board of the Bank. Since 2004, he has been professionally involved with the Pekao S.A. Capital Group. From 2018 to 2021, he served as the Management Board’s Proxy for Transformation, and later also as the Management Board’s Proxy for Strategy, responsible for, among other things, overseeing digital and operational transformation and leading the work on the Bank’s Strategy. From 2017 to 2018, he headed the Bank’s Transformation and Services Division, managing, among other things, IT and Operations. From 2010 to 2017, as a Member of the Management Board of Pekao Leasing, he was responsible for IT, Operations, Insurance, Customer Service, among other things.
From 2004 to 2010, he held management positions in the Corporate Banking Division, participated in the preparatory work for the merger of Bank Pekao and Bank BPH. Before joining Pekao, he worked at the McKinsey consulting firm in Frankfurt am Main, Germany, was a researcher at the Universities of Frankfurt/Oder and Giessen, Germany, and gained work experience at Dresdner Bank.
He has served as Chairman of the Supervisory Board of Centrum Kart S.A. since 2017. From 2017 to August 2020, he sat on the Supervisory Board of Pekao Financial Services Sp. z o.o., serving as Deputy Chairman and Secretary of the Supervisory Board. He was reappointed to the Supervisory Board of Sp. z o.o. in March 2021 and currently serves as Chairman of the company’s Supervisory Board.
He holds a doctorate in economics and is also a graduate of the Faculty of Economic Sciences at the European University Viadrina in Frankfurt/Oder. He has completed a number of domestic and international training courses and programs, including, Unifuture in cooperation with the Institute for Management Development (IMD) in Lausanne, Switzerland.
Błażej Szczecki meets the suitability requirements set forth in Article 22aa of the Banking Law.
Marcin Zygmanowski Vice President of the Management Board of the Bank, For almost 30 years professionally associated with Accenture, where he served as Managing Director since 2005.
From 2005 to 2013, he led the information technology practice at Accenture in Poland.
From 2013 to 2015, he built a digital transformation practice for the banking sector in Poland, and from 2016 became the leader of the global practice with a specialisation in digital banking startups.
From 2017 to 2019, he led the program that created the new digital bank in France and was responsible for its maintenance, further development and business continuity until 2023. At the same time, he worked closely with leading banks in Poland, implementing projects in retail, corporate and investment banking.
He has led large, multi-year transformation programs at clients in Poland and around the world transforming local, regional and global organisations using established and emerging technologies.
He has extensive international experience: he has worked on major projects at financial institutions in the US, Canada, UK, France, Spain, Germany, Czech Republic, Lithuania, Hungary, Turkey, UAE, Malaysia, Singapore.
He graduated with honours from the Faculty of Electronics at Warsaw University of Technology and completed postgraduate studies in IT at the Swiss Federal Institute of Technology in Zurich. He has received a number of overseas trainings and programs on managing complex programs, building technology solutions, cyber security, cloud, blockchain, Gen AI, risk management.
Marcin Zygmanowski meets the suitability requirements set forth in Article 22aa of the Banking Law.
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Members of the Management Board of the Bank coordinate and supervise the activity of the Bank, pursuant to the delegation of competencies adopted by the Management Board of the Bank and approved by the Supervisory Board. As at 31 December 2024, the division of competencies between members of the Management Board of the Bank was as follows:
President of the Management Board of the Bank Cezary Stypułkowski convenes and chairs the meetings of the Management Board of the Bank, presents the position of the Management Board of the Bank to the Bank’s bodies and in external relations, in particular to public authorities.
The President of the Management Board of the Bank Cezary Stypułkowski coordinates the work of Members of the Management Board of the Bank, issues dispositions in accordance with the provisions laid down in internal regulations in force at the Bank.
President of the Management Board of the Bank oversees the following areas of the Bank’s operations: internal audit, compliance risk, corporate communications, investor relations, security, legal risk, strategic projects, human resources management, and macroeconomic analysis and digital transformation.
The President of the Management Board of the Bank is appointed as the Member of the Management Board responsible for implementing the obligations set forth in the Law on Prevention of Money Laundering and Financing of Terrorism.
Marcin Gadomski, Vice President of the Management Board of the Bank supervises the activities of the Risk Management Division, including ESG risk, and is responsible for overseeing the risk management process of the bancassurance business.
Dagmara Wojnar, Vice President of the Management Board of the Bank, supervises the operations of the Financial Division and was appointed as a Member of the Management Board to whom infringements are reported and who is responsible for the on-going functioning of the Whistleblowing procedure.
Robert Sochacki, Vice President of the Management Board of the Bank, supervises the operations of the Corporate Banking, Markets and Investment Banking Division, the Business Banking Division and Centre - Pekao Brokerage House.
Błażej Szczecki, Vice President of the Management Board, supervises the Retail and Private Banking Division
Marcin Zygmanowski, Vice President of the Management Board of the Bank, supervises the activities of the Technology and Operations Division and coordinates activities aimed at proper management of the risk related to the security of the ICT environment.
Supervisory Board
The Supervisory Board operates on the basis of the Regulations of the Supervisory Board of Bank Polska Kasa Opieki Spółka Akcyjna adopted by Resolution No. 10/15 of the Supervisory Board of 6 February 2015, subsequently amended by: Resolution No. 9/18 of 13 March 2018, Resolution No. 128/20 of 15 July 2020, Resolution No. 157/20 of 3 November 2020, Resolution No. 168/20 of 10 November 2020, Resolution No. 108/21 of 8 July 2021, Resolution No. 10/22 of 24 January 2022 and Resolution No. 116/23 of 18 October 2023.
The Regulations of the Supervisory Board are available on the Bank’s website. 21
The role of the Supervisory Board is to exercise general and continuous supervision over the Bank’s activities, also taking into account the Bank’s role as a parent company to its subsidiaries. In addition to its powers under the law, the Supervisory Board has the powers set forth in the Bank’s Articles of Association, where, in particular, the Supervisory Board considers all matters brought before the Bank’s General Meeting.
Members of the Supervisory Board are guided in their conduct by the interests of the Bank and take all measures to ensure the smooth functioning of the Supervisory Board. In addition, Members of the Supervisory Board of the Bank may not take such actions and decisions that would cause a conflict of interest or that would be contrary to the interests of the Bank. A Member of the Supervisory Board should inform the Supervisory Board of a conflict of interest or the possibility of a conflict of interest, and should refrain from speaking in the discussion and from voting on a resolution on a matter in which a conflict of interest has arisen.
In accordance with applicable law, the Supervisory Board prepares and submits to the Bank’s General Meeting an evaluation of the Management Board’s report on the Bank’s operations and the Bank Group’s operations for the past fiscal year, an evaluation of the Bank’s financial statements and the Bank Group’s consolidated financial statements for the past fiscal year, an evaluation of the Management Board’s proposals regarding profit distribution or loss coverage, as well as a report on the activities of the Supervisory Board of the Bank. These evaluations are made available to shareholders prior to the Bank’s General Meeting.
21 https://www.pekao.com.pl/o-banku/lad-korporacyjny.html
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The Supervisory Board has established problem committees to deal with specific areas of the Bank’s operations, which include: Audit Committee, Nomination and Remuneration Committee, and Risk Committee. The reports of committees established by the Supervisory Board are kept at the Bank’s Head Office. The annual reports of the committees are attached to the Supervisory Board’s report and published in the same manner as the report.
In 2024, the Supervisory Board held 15 meetings.
From 1 January to 17 April 2024, the composition of the Supervisory Board was as follows:
Beata Kozłowska-Chyła Chairwoman of the Supervisory Board. She holds the position of President of the Management Board of PZU S.A. She graduated from the Faculty of Law and Administration at the University of Warsaw. She received a doctoral degree in legal sciences.
She is a lecturer at the Faculty of Law and Administration of the University of Warsaw in the Department of Commercial Law. She practices the profession of legal counsel and is a recommended arbitrator in the Court of Arbitration at the National Chamber of Commerce in Warsaw.
She served as a Member of the Supervisory Board of PZU S.A., a Member of the Supervisory Board of TFI PZU S.A. and PTE PZU S.A., and was twice a Member of the Management B of PZU S.A. She also served on the Management Board of PZU Życie S.A. She also worked as deputy director of the Legal and Licensing Department at the Pension Funds Supervisory Authority and served as President of the Management Board of Polskie Wydawnictwo Ekonomiczne S.A.
Beata Kozłowska - Chyła is currently a Chairwoman of the Supervisory Board of PZU Życie S.A. She is also a member of the Audit Committee of the Polish Insurance Association and a member of the Council of the Insurance Guarantee Fund.
She is the author of dozens of scientific publications in the field of corporate law, securities law and insurance law, published in reputable Polish and foreign journals, as well as the author of popularisation articles.
Małgorzata Sadurska Deputy Chairwoman of the Supervisory Board. She has been a Member of the Management Board of PZU S.A. since 2017, and was a member of the Management Board of PZU Życie S.A. from 2017 to 2022, where she currently serves as a Director of the PZU Group.
Graduate of the Faculty of Law and Administration at Maria Curie-Skłodowska University in Lublin and postgraduate studies in Organisation and Management at the Lublin School of Business. She graduated with a Master of Business Administration from the Faculty of Management at Lublin University of Technology. The managerial studies program was conducted in cooperation with the University of Minnesota in Minneapolis, USA.
On the Management Board of PZU S.A., she is responsible for the Bank Cooperation Division and the Corporate Client Division. She is also a member of key committees functioning at PZU S.A. and PZU Życie S.A.
Until 2017 as head of the Office of the President of the Republic of Poland. She was a Member of the Polish Parliament from 2005 to 2015.
In 2007, she served as Chairwoman of the Supervisory Board of the Social Insurance Institution and as Secretary of State in the Prime Minister’s Office.
Currently Member of the Supervisory Board of Link4 TU S.A. and Chairwoman of the Supervisory Board of Towarzystwo Ubezpieczeń Wzajemnych PZUW, POLSKI GAZ Towarzystwo Ubezpieczeń Wzajemnych and POLSKI GAZ Towarzystwo Ubezpieczeń Wzajemnych na Życie. She is also a lecturer at the College of Business and Administration in Lublin.
Stanisław Ryszard Kaczoruk, Ph.D. Secretary of the Supervisory Board, Member of the following Supervisory Boards of companies listed on the WSE: MCI Capital Towarzystwo Funduszy Inwestycyjnych S.A. (2009-2011), Eficom-Sinersio S.A. (2015-2016), Alior Bank (2016- 2017), Bank Pekao S.A. (Deputy Chairman of the Supervisory Board, since 2017), Qumak S.A. (2017-2019), PKP PLK S.A. (since 2018).
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He has participated in projects related to the development of strategies for strategic companies, and has worked with leading consulting companies in the area of capital acquisitions and company restructuring (including PKP Energetyka, Elester PKP). He also collaborated on the organisation of KGHM’s TFI. Expert of the Ministry of Development on the use of EU subsidies. He was also an advisor to the company Critical Applications (VAT analyses) working for the Ministry of Finance. From 1998 to 2016, he worked in directorships and on the boards of capital companies operating in the IT, legal services, and consulting markets, while also conducting business activities in the fields of business model building, market analysis development, segmentation, analysis of organisational structures and processes, financial engineering, debt collection, and corporate restructuring and strategy building.
He carried out conceptual, coordination and promotional and educational activities in the field of cybersecurity in Poland. He has extensive practical and managerial knowledge and experience. From 1978 to 1992, he was active in teaching and research at universities in Wrocław and Szczecin.
From 1991 to 1993, head of the IT department at KGHM-Metraco sp. z o.o., in 1993 head of the IT department of the Office of the Management Board of KGHM S.A., in 1994 commercial-regional director at InterAms sp. z o.o.; 1994-95 commercial director at NetCom Ltd; 1995-97 managing director at Kaczmarski Burgel Inkasso sp. z o.o.; 1997- 2002 commercial director at Winuel S.A. (EMAX); 2002-2005 worked with ComputerLand S.A. and 2005-2006 with SPIN S.A. in defining and implementing product development strategies, market research, customer acquisition, among others; 2004-2012 Member of the Management Board of Value BasedAdvisors sp. z o.o., since 1999 president and co- owner of International Court of Arbitration sp. z o.o. (2013-2018 President of the International Court of Arbitration S.A.); 2015-2016 proxy at Eficom-Sinersio S.A. Mathematician. Graduate of the Faculty of Mathematics, Physics and Chemistry at the University of Wrocław. From 1979 to 1991, research and teaching work at universities.
He received a doctorate in technical sciences in 1986, additionally completed in 1986 postgraduate pedagogical studies, IFG training, in 1993 Postgraduate Polish-American Study of Social Communication, Wrocław University of Technology & Univ. of Connecticut, USA; dozens of training courses in marketing and management, economics, finance, computer science, NLP, occupational health and safety. Participation in many scientific and research works, cooperation with several universities and scientific centres in Poland (including since 2016 - CEZAMAT - member of the Program Council), more than a dozen publications in the field of theoretical analyses and applications of mathematics (including mathematical statistics) and computer science, among others in economics and environmental protection, published in numerous Polish and foreign scientific journals. He has been awarded the Bronze Cross of Merit (2005), the Knight’s Cross of the Order of Polonia Restituta (2012), as well as numerous honours and awards from social organisations and associations.
Marcin Izdebski Member of the Supervisory Board. Graduate of the Warsaw University of Technology and the Warsaw School of Economics. He gained professional practice in the private sector, NGOs and government administration, with which he has been continuously involved since 2016. During this time, he was responsible for overseeing state-owned companies. He was responsible for carrying out capital transactions involving acquisitions, mergers, spin-offs of assets or companies. He has experience in the supervisory bodies of capital companies, among others, PKO Bank Polski S.A. He currently serves as Director of the Department of Fuel and Energy Companies at the Ministry of State Assets. From 2017 to 2022, he served as Chairman of the Supervisory Board of Polska Grupa Lotnicza S.A. and as a Member of the Supervisory Board of Polski Holding Hotelowy Sp. z o.o., Polska Wytwórnia Papierów Wartościowych S.A., PKO Bank Polski S.A., and is currently a Member of the Supervisory Board at System Gazociągów Tranzytowych EuropolGaz S.A.
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Sabina Bigos-Jaworowska Member of the Supervisory Board. Graduate of the Academy of Economics in Katowice, Faculty of Economics. She completed the Postgraduate Program in Healthcare Management at the same university. She holds a diploma from the Minister of the Treasury authorising her to sit on the supervisory boards of state-owned companies. She has been involved in the Healthcare sector since 1994, in 2000 she became Director of the Healthcare Complex in Oświęcim, and since 2019 she has been Director of the Bielsko- Biała Regional Hospital. In 2016, she served as a Member of the Supervisory Board of PL 2012+, the operator of the National Stadium in Warsaw. In April 2017, she was reappointed for another term as Vice Chairwoman.
In addition, she serves as Vice President of the Association of Hospitals of Lesser Poland, Member of the Management Board of the National Association of Employers of County Hospitals, Employer Representative of the Convention of the State Higher Vocational School in Oświęcim and Member of the Council for Healthcare under the National Development Council to the President of the Republic of Poland.
Michał Kaszyński Member of the Supervisory Board. Graduate of the Faculty of Law at Jagiellonian University in Cracow and Postgraduate Studies in Personnel Management at the AGH University of Science and Technology in Cracow. In 1992, he completed an internship under the Tempus program at the Instituto Formazione Operatori Aziendali in Italy in management and marketing. He completed his legal advisor’s apprenticeship in 2005 and is registered on the list of legal advisors at the District Chamber of Legal Advisors in Katowice. From 1988 to 2011 he was associated with SAOL Dystrybucja, an alcoholic beverage distribution company, which was part of the CEDC S.A. group from 2004.
At the company, he respectively served as Director of Human Resources and later as Director of Administrative, Legal and HR. Since 2005, he has been running his own business within the framework of which he provides legal assistance to entrepreneurs and local government units in the fields of investment, production, management of housing resources, sales and medical activities. He served on the Supervisory Boards of: Miejski Zakład Energetyki Cieplnej, Firma Handlowa SAOL, Przedsiębiorstwo Handlu Spożywczego, KBO Oświęcim, Gliwickie Zakłady Usług Górniczych and Krynica Uzdrowisko-Żegiestów Spółka Akcyjna.
Marian Majcher Member of the Supervisory Board. Graduate of the University of Silesia in Katowice at the Faculty of Social Sciences and Postgraduate Studies in Enterprise Management at the Institute of Organisation and Management in Industry based in Warsaw. He began his career as a researcher at the University of Silesia in Katowice. In 1990-1999, he devoted himself to building free media in Poland as co-owner of the press publishing houses “Słowo” in Chorzów and “Wolne Słowo” in Katowice. He began his career in industry in 1999, being associated until 2016 with the CTL Maczki-Bór S.A. Group and its extensive operations in the Upper Silesian Industrial District. He held the positions of Managing Director and Vice President of the Management Board of CTL, playing a key role in the privatisation of this company (the then Maczki-Bór Sand Mine) and its incorporation into the CTL Logistics Group - one of Europe’s largest independent and private rail carriers. From May 2010 to May 2016, he held the position of President of the Management Board of CTL Maczki - Bór S.A. Since 2003 he has held the position of President of the Management Board of CTL Haldex S.A., a company engaged in the technological recovery of hard coal from waste rock. At the same time, it is one of the largest completed and pro-environmental development projects of the CTL Maczki-Bór Group in cooperation with Haldex S.A. He is a certified member of Supervisory Boards in state-owned companies.
He enhanced his banking knowledge at workshops organised by the Boston Consulting Group on market analysis, risk management and the economic environment. He is also a specialist in obtaining financing for the modernisation and restructuring of enterprises and negotiating. He served on the Supervisory Boards of, among others: Regional Development Agency in Żory (Deputy Chairman of the Supervisory Board), Wojewódzkie Przedsiębiorstwo Energetyki Cieplnej [Provincial Heating Power Company] in Legnica (Member of the Supervisory Board), Tauron Czech Energy s.r.o. in Ostrava, Maczki-Bór Sand Mine Sp. z o.o. (Chairman of the Supervisory Board), Centralny Ośrodek Informatyki Górnictwa S.A. in Katowice (Member of the Supervisory Board), EIB S.A. in Toruń (Member of the Supervisory Board), MB EKO S.A. in Sosnowiec, Metanel S.A. in Warsaw, and Centrala Zaopatrzenia Hutnictwa S.A. in Katowice.
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Since 2017, he has served as a Member of the Supervisory Board of Bank Pekao S.A., including as a member of the Risk Committee of the Supervisory Board. Winner of numerous management awards including: (i) “Success in Silesia. People and Companies” in the category of Manager in Silesia 2012 awarded by the Silesian Association of Managers in Katowice, (ii) “Business Gazelle” for the achieved development and growth of the company awarded by Puls Biznesu, (iii) “Well seen Company” awarded by Business Centre Club.
Awarded the Medal of Merit for the Katowice Province (1999) and the Distinguished Cultural Activist badge (1999). In 2010, President of the Republic of Poland Lech Kaczynski honoured Mr Marian Majcher with the Knight’s Cross of the Order of Polonia Restituta for shaping the free media in the 1980s.
Four members of the Supervisory Board, i.e.: Sabina Bigos-Jaworowska, Stanisław Ryszard Kaczoruk, Michał Kaszyński, and Marian Majcher meet the independence criteria set out in the Act of 11 May 2017 on Statutory Auditors, Audit Firms and Public Oversight, as well as there are no actual and material ties to a shareholder holding at least 5% of the total number of votes in the company.
On 17 April 2024, the Bank’s Annual General Meeting, taking into account the assessment of the fulfllment of suitability requirements, appointed the Members of the Supervisory Board of the Bank for a new joint term of office of three years, beginning on 18 April 2024.
The following persons were appointed to the Supervisory Board of the Bank:
1) Mr Krzysztof Czeszejko-Sochacki - Member of the Supervisory Board,
2) Mr Bartosz Grześkowiak - Member of the Supervisory Board,
3) Mr Radosław Niedzielski - Member of the Supervisory Board,
4) Mr Jacek Nieścior - Member of the Supervisory Board,
5) Mr Artur Nowak-Far - Member of the Supervisory Board,
6) Mr Artur Olech - Member of the Supervisory Board,
7) Mr Robert Sochacki - Member of the Supervisory Board,
8) Mrs Anna Wawrzyńczak-Palynyczak - Member of the Supervisory Board.
According to the statements submitted, none of the Members of the Supervisory Board of the Bank is engaged in activities that are competitive with the Bank, does not participate in a competitive company as a partner in a civil partnership, partnership or capital company, does not participate in a competitive legal entity as a member of its body. According to the statements submitted, none of the Members of the Supervisory Board of the Bank is listed in the Register of Insolvent Debtors, maintained pursuant to the Act of 20 August 1997 on the National Court Register.
On 22 April 2024, the Supervisory Board of the Bank elected Mr Artur Olech as Chairman of the Supervisory Board of the Bank, as well as Mr Bartosz Grześkowiak and Mr Artur Nowak-Far as Deputy Chairmen of the Supervisory Board of the Bank.
In addition, on 22 April 2024, the Supervisory Board of the Bank elected Mrs Anna Wawrzyńczak-Palynyczak as Secretary.
On 9 July 2024, the Supervisory Board of the Bank, through an open qualification process and after an assessment of suitability, appointed the following as of 10 July 2024, Mr Robert Sochacki to the Management Board of the Bank for the current joint term of office as Vice President of the Management Board of the Bank. In connection with his appointment to the Management Board of the Bank, Mr Robert Sochacki resigned from the Supervisory Board of the Bank effective 9 July 2024.
On 6 September 2024, the Bank’s Extraordinary General Meeting, taking into account the assessment of the fulfllment of suitability requirements, appointed Mr Witold Walkowiak to the Supervisory Board of the Bank for a joint term of office of three years, which began on 18 April 2024.
According to the statement submitted, Mr Witold Walkowiak does not conduct any activity competitive to the Bank, does not participate in a competitive company as a partner in a civil partnership, partnership or a capital company, and does not participate in a competitive legal entity as a member of its body. According to the statement submitted, Mr Witold Walkowiak is not registered in the Register of Insolvent Debtors kept pursuant to the provisions of the Act of 20 August 1997 on the National Court Register.
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On 28 November 2024, the Bank’s Extraordinary General Meeting, taking into account the assessment of the fulfllment of suitability requirements, appointed Mrs Magdalena Joanna Dziewguć to the Supervisory Board of the Bank for a joint term of office of three years, which began on 18 April 2024.
According to the statement submitted, Mrs Magdalena Joanna Dziewguć does not conduct any activity competitive to the Bank, does not participate in a competitive company as a partner in a civil partnership, partnership or a capital company, and does not participate in a competitive legal entity as a member of its body. According to the statement submitted, Mrs Magdalena Joanna Dziewguć is not registered in the Register of Insolvent Debtors kept pursuant to the provisions of the Act of 20 August 1997 on the National Court Register.
On 18 December 2024, Mrs Anna Wawrzyńczak-Palynyczak resigned from membership in the Supervisory Board of the Bank, effective as of 18 December 2024.
Accordingly, the composition of the Supervisory Board is as follows:
1) Mr Artur Olech - Chairman of the Supervisory Board,
2) Mr Bartosz Grześkowiak - Deputy Chairman of the Supervisory Board,
3) Mr Artur Nowak-Far - Deputy Chairman of the Supervisory Board,
4) Mr Jacek Nieścior - Member of the Supervisory Board,
5) Mr Krzysztof Czeszejko-Sochacki - Member of the Supervisory Board,
6) Mr Radosław Niedzielski - Member of the Supervisory Board,
7) Mr Witold Walkowiak - Member of the Supervisory Board,
8) Mrs Magdalena Dziewguć - Member of the Supervisory Board.
Six Members of the Supervisory Board, i.e.: Artur Nowak-Far, Krzysztof Czeszejko-Sochacki, Radosław Niedzielski, Jacek Nieścior, Witold Walkowiak, Magdalena Joanna Dziewguć meet the independence criteria set out in the Act of 11 May 2017 on Statutory Auditors, Audit Firms and Public Oversight, as well as there are no actual and material ties to a shareholder holding at least 5% of the total number of votes in the company.
Artur Olech Chairman of the Supervisory Board. Manager with more than 30 years experience in the financial and insurance industry. He has served as Chairman of the Management Board of PZU S.A. since 12 April 2024.
Graduate of the Faculty of Law and Administration at the University of Warsaw and the Faculty of Finance and Banking at the Warsaw School of Economics. He also completed his studies at Wirtschaftsuniversität Wien. He has participated in numerous top management training courses, including Harvard Business School, Kellogg School of Management and Chicago GSB (Booth School of Business).
Co-founder of fintechs. An expert in business process management. Long-time President of the Management Board of financial institutions. As of May 2020, he co-founded Trasti, an insurtech and digital insurer created in joint venture with Triglav DD and Swiss Re, where he also served as the President of the Management Board. Associated with the insurance market, among others, in both the private and public domains.
In 2014, he was invited by the Management Board of Poczta Polska S.A. [Polish Post] Group to work with it to create and lead Postal Insurance using his experience and expertise. Within just four months of its establishment and licensing, the life company Pocztowe Towarzystwo Ubezpieczeń na Życie S.A. began operations. At the same time, his team reorganised the operations of the property company, Pocztowe Towarzystwo Ubezpieczeń Wzajemnych [Postal Mutual Insurance Company], changing its structure and modernising it toward a multi-brand business model.
He has been with the Generali Group for many years, passing through all career levels and different areas of responsibility, starting from the position of manager, through Department Director, Member of the Management Board, Vice President, until he was offered the position of Group President in Poland in 2010. During this period, he underwent numerous specialised training courses and was the first Pole to attend the Value of Knowledge top management program within the international structures of the Generali Group. During his presidency in Poland, Generali’s Polish companies were twice, in 2012 and 2013, awarded in the group for financial performance and business value growth.
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From 2010 to 2014, he headed the multinational, multicultural and diversified Generali Group Management Board in Poland.
He has served on several supervisory boards in Polish financial institutions and pension funds, serving as an independent member in public sector and listed companies. From 2017 to 2018, he served as a Member of the Supervisory Board at Mabion S.A., an innovative drug manufacturer. In 2016, he joined the Supervisory Board of Ciech S.A. (now Qemetica), where he still serves as Chairman of the Audit Committee.
In March 2023, he was invited to join the Program Council of EKF Insurance, a conference organised as part of the prestigious European Financial Congress. He serves as a member of the chapter of Leaders of the Banking and Insurance World, which awards annual prizes to the best banks and insurance companies. Member of the Audit Committee of the Polish Insurance Association since May 2024. Member of the Council of the Insurance Guarantee Fund since June 2024.
Bartosz Grześkowiak Deputy Chairman of the Supervisory Board. Manager involved in the insurance industry for more than 20 years. Member of the Management Board of PZU S.A. since 12 April 2024.
Graduate of the University of Life Sciences in Poznań. In 2003, he completed a one-year post-graduate course in equity investments at the Poznań School of Banking at the Faculty of Finance and Banking. He also completed the AMP Advanced Management Program approved by IESE University of Navarra. He passed a brokerage exam.
Since the beginning of his career, he has been involved in the insurance market in the corporate insurance segment - from 2005, he held managerial positions at UNIQA Towarzystwo Ubezpieczeń S.A. for several years, eventually taking the position of Director of the Sales Department (Broker Channel) in 2008. Since 2011, he held the position of managing director at Towarzystwo Ubezpieczeń i Reasekuracji WARTA S.A., where he was responsible for managing the Corporate Insurance Department and took an active part in building and implementing the company’s strategy. In 2018, he joined the MAK Group as vice president of the companies: MAK Insurance and STBU Insurance Brokers. He then took on the role of the President of the Management Board of MAK International Sp. z o.o. in May 2019 and became Vice President of the Management Board of reinsurance broker MAK Re in November 2020.
He has been Chairman of the Supervisory Board of TUW PZUW since April 2024, and has served on the Audit Committee of the Polish Insurance Association since May 2024.
Artur Nowak-Far Deputy Chairman of the Supervisory Board, Full Professor of Law, Doctor of Economic Sciences, researcher at the Warsaw School of Economics. Recognised expert in financial law, including European Union financial law. From 2013 to 2015, Undersecretary of State at the Ministry of Foreign Affairs, responsible for, among other things, the control of legislation in compliance with EU law. From 2007 to 2013, member of the College of the Supreme Audit Institution. Editor and author of articles and books, especially on financial and EU law, including “Law and Economics of the European Union Internal Market” (Pub. Poltext, Warsaw 2013), “European Union Law. Languages, structures, action in Practice” (C.H. Beck, Warsaw 2021), “European Economic and Monetary Union: A Legal Perspective on the EU Economic Governance Model Development” (Study, Rome 2022), “Banking Law. Commentary” edited by Agnieszka Mikos-Sitek and Piotr Zapadka (Wolters Kluwer, Warsaw 2023).
He is an independent Member of the Supervisory Board.
Jacek Nieścior Member of the Supervisory Board. He graduated in 1991 from the Faculty of Law at the University of Gdańsk. After graduation, he served his legal training at the Regional Chamber of Legal Advisors in Olsztyn - he has been registered as a legal advisor since 1994. He has worked in managerial positions at, among others, the Supreme Chamber of Control, the Warsaw City Hall, the Voivodeship Office in Warsaw and the Marshal’s Office of the Mazovian Voivodeship. He served on the Supervisory Boards of Grodziskie Zakłady Farmaceutyczne POLFA Sp. z o.o. z/s in Grodzisk Mazowiecki, DIPSERVICE w Warszawie S.A., Stołeczne Przedsiębiorstwo Handlu Wewnętrznego Sp. z o.o., Huta Lucchini Warszawa Sp. z o.o., Pekao Investment Management S.A. and Grupa AZOTY Zakłady Azotowe “Puławy” S.A. as Chairman of the Supervisory Board. Since 1998, he has
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continuously practiced the profession of legal advisor currently in running his law office, which provides legal assistance to local government units and entrepreneurs.
He is an independent Member of the Supervisory Board.
Krzysztof Czeszejko-Sochacki Member of the Supervisory Board. Graduate of the Faculty of Law and Administration at the University of Warsaw. After passing the judge’s (1980) and lawyer’s (1983) examinations, he practices the profession of a lawyer, first in the attorney team, and since 1992 in his own law firm in Warsaw - Kancelaria Adwokacka Adwokat Krzysztof Czeszejko- Sochacki, specialising in a wide range of civil law, business law, banking law, real estate and construction investments, intellectual and industrial property, copyright law, family law, energy law and constitutional law, as well as providing comprehensive legal assistance in judicial, administrative and judicial-administrative proceedings and alternative methods of dispute resolution (mediation, arbitration).
Mediator and arbitrator of the Arbitration Court at the Polish Chamber of Commerce in Warsaw (1999-2005 vice president), the Arbitration Court at SIDiR in Warsaw, the Arbitration Court of Western Pomerania at the Northern Chamber of Commerce in Szczecin and the Arbitration Court at the Polish-German Chamber of Industry and Commerce in Warsaw. Mediator at the International Mediation Centre in Poland, the Mediation Centre at the National Chamber of Commerce and the Economic Mediation Centre at the Gas Chamber of Commerce. Member of the Council of the Warsaw Chamber of Commerce, Deputy Chairman of the Supervisory Board of MUZA S.A., the Polish-French Chamber of Commerce (CCIFP), the Polish National Committee of the International Chamber of Commerce (ICC Poland), Management Board of the Warsaw Friends Association, KW of the General Council of the Association, “Ordynacka”. Honorary member of the Association of International Private Law in Lugano, Switzerland.
Head of the Chancellery of the Sejm from 2001 to 2004. Former President of the Management Board of Investgas S.A. in Warsaw, Mazur Trading Environment Sp. z o.o. in Warsaw and the Foundation for Supporting Economic Initiatives. Former member of the Supervisory Board of Polskie Radio S.A. and the Management Board of the Polish Olympic Foundation in Warsaw, Editorial Committee of the bimonthly magazine “Sejmowy Przegląd” (2004-2006), in 2017-2021 member of the Legislative Commission of the Supreme Bar Council, Council of Bank Inicjatyw Gospodarczych S.A. (1989 – 1991). Former secretary of the Supervisory Board of Polskie Radio S.A., Supervisory Board of Powszechne Towarzystwo Emerytalne H-M-C S.A., chairman of the Supervisory Board of PERN “Przyjaźń” S.A. in Płock, deputy chairman of the Mazovian Regional Health Fund in Warsaw (1999 - 2001). Former president of the National Council of the Society for the Support of Economic Initiatives (1996-2005), vice president of the National Chamber of Commerce in Warsaw (1997-2004) and Vice President of the Management Board of the Polish Fencing Club (2003-2023). In 1998-2002, a councillor of the Mazovian Voivodeship of the first term, member of the Presidium of the Mazovian Voivodeship Assembly - Chairman of the Commission, former judge of the State Tribunal (1993-1997), the Court of the Chamber of Brokerage Houses in Warsaw (1997 - 2001).
Awarded, among other things: With the Officer’s Cross of the Order of Polonia Restituta, with the Cross of the White Star of the Second Class for Merits to the State and the Estonian Nation, with the Honorary Gold Badge of the National Chamber of Commerce, with the Gold Medal of the Academy of Polish Success, with the Gold Badge of the ZSP, with the medal “For Merits to the Student Movement”, “Benevolenti” title for supporting pro-social initiatives of the Pro Seniore Foundation and charitable activities for the benefit of senior doctors, “Meritorious Activist of the Cooperative Movement” badge, “For Merit to Warsaw” honorary badge.
He is an independent Member of the Supervisory Board.
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Bank Pekao S.A.
Radosław Niedzielski Member of the Supervisory Board. Manager with experience in the public sector. Graduate of the Jagiellonian University and the National School of Public Administration. He gained and perfected his professional experience at the Ministry of the Treasury, the Chancellery of the Prime Minister, Agencja Rozwoju Przemysłu S.A. or Bank Gospodarstwa Krajowego, among others. Responsible for exercising the right from stocks and shares in a total of more than 150 state-owned companies. He led investment projects involving direct capital entry by the State Treasury or a state legal entity.
Expert in the field of restructuring, including with the use of state aid. Co-author of the rescue and restructuring aid program for entrepreneurs notified to the European Commission, which he operationalised 5 years later into a national law.
He is currently Vice President of the Management Board at Agencja Rozwoju Przemysłu S.A., where he is responsible for finance and supervision of the Group.
He is an independent Member of the Supervisory Board.
Witold Walkowiak Member of the Supervisory Board. He has more than 25 years of experience in the financial sector at home and abroad. He began his career in banking at Bank Handlowy in Warsaw S.A., where he held positions from deputy department director to Vice President of the Management Board. He was Vice President of the Management Board at Bank Przemysłowo-Handlowy S.A. He also gained extensive experience in insurance institutions. He served as a Member of the Management Board of PZU S.A. He was associated with the Dutch insurance group Achmea, where he worked as CFO of the European Department and served as a member of the boards of directors and chairman of audit committees at Friends First in Dublin and Interamerican in Athens. He was Vice President of the Management Board of insurance companies in the Warta Group for nearly 10 years.
His primary areas of expertise and responsibility as they related to his duties in the financial sector included financial accounting and reporting, financial planning and controlling, risk management and asset management.
He was a Member of the Management Board of the Polish Bank Association and the Polish Insurance Association.
He is currently a lecturer at the Vistula Academy of Finance and Business.
He is a graduate of the Warsaw School of Economics and holds a Ph.D. in economics. He was a British Council Fellow at Cambridge University and a Fulbright Fellow at the Brookings Institution in Washington, DC.
He is an independent Member of the Supervisory Board.
Magdalena Joanna Dziewguć Member of the Supervisory Board. Magdalena Joanna Dziewguć is a manager with more than 20 years of experience in the new technology sector, specialising in digital transformation and innovation. Holds a Master’s degree in law and has completed numerous postgraduate studies, including an Executive MBA at the Warsaw School of Economics and programs at Harvard Business School. Holds the prestigious Corporate Board Director diploma issued by this university.
Co-founder of Digital University and the LiderSHE Association, which promotes women in the public sphere. Has extensive experience working on the supervisory boards of both state-owned and European-listed companies. She serves as a Member of the Supervisory Board of InPost, and in the past was a member of the boards of PGE Dystrybucja, BNP Paribas Bank Poland and Wrocław University of Technology, among others.
Her career includes key roles at Google, Exatel, Polkomtel and Orange. At Google Cloud, she is responsible for developing operations in Central and Eastern Europe, including the launch of the first public cloud technology region in Eastern Europe.
Recognised as one of the most influential women in the technology industry in Poland, she has received a number of awards, including Executive Club CEO of the Year. Finalist in the ranking of Warsaw Woman of the Year 2022.
On a daily basis, she is a mother of three, working for the professional activation of women and their greater participation in the economy and public authorities.
She is an independent Member of the Supervisory Board.
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Bank Pekao S.A.
Audit Committee
In 2024, the Audit Committee operated on the basis of the Regulations of the Supervisory Board adopted by resolution of the Supervisory Board of the Bank No. 116/23 dated 18 October 2023 and the Regulations of the Audit Committee of the Supervisory Board of Bank Polska Kasa Opieki Spółka Akcyjna adopted by resolution of the Supervisory Board of the Bank No. 118/23 dated 18 October 2023.
The purpose of the Audit Committee is to assist the Supervisory Board of the Bank in fulfilling its responsibilities with respect to primarily:
1) monitoring the financial reporting process,
2) monitoring the effectiveness of internal control systems as well as risk management and internal audit systems, including in the field of financial reporting,
3) monitoring the performance of financial audit activities, including but not limited to the audit carried out by the audit firm, taking into account requests and findings of the Polish Audit Supervision Agency resulting from the audit carried out at the audit firm,
4) controlling and monitoring the independence of the statutory auditor and the audit firm, in particular when services other than audit are provided for the Bank by the audit firm,
5) informing the Supervisory Board of the Bank about the results of the audit and explaining how the audit has contributed to the reliability of financial reporting, as well as what was the role of the Audit Committee in the audit process,
6) assessing the independence of the statutory auditor and expressing consent to the provision of permitted non-audit services,
7) developing a policy for selecting an audit firm to carry out the audit,
8) developing a policy for the provision of permitted non-audit services by the audit firm that performs the audit, affiliates of the audit firm, and a member of the audit firm’s network,
9) determining the procedure for selecting an audit firm to conduct an audit of the financial statements,
10) submitting recommendations to the Supervisory Board of the Bank on the selection of an audit firm to audit the financial statements,
11) submitting recommendations to the Supervisory Board of the Bank to ensure the integrity of the financial reporting process,
12) issuing opinions on the audit plan presented by the Internal Audit for a given financial year as well as presenting recommendations to the Supervisory Board regarding approval thereof;
13) examining, at least once a year, the process of preparing annual and interim financial statements in reliance on reports provided by the appropriate organisational unit of the Bank’s head office;
14) assessing significant (i.e. those affecting the Bank’s operations, the Bank’s financial statements, the Bank’s reputation and compliance with the law) conclusions resulting from the operations of the Bank’s Internal Audit or from other inspections and proceedings conducted by external entities, in particular from control reports of the Polish Financial Supervision Authority;
15) supervising remedial measures in relation to identified irregularities;
16) meeting, at least once a year, with the statutory auditor to analyse the annual audit report;
17) submitting, at least once a year, reports on its activities to the Supervisory Board and, at least once a quarter of the financial year, information on the supervisory activities undertaken and results thereof;
18) maintaining effective working relationships with the Supervisory Board, Management Board, Internal and External Auditors; and
19) analysing and informing about transactions concluded between affiliated entities as well as in the event of direct or indirect conflict of interest.
The Audit Committee is made up of 3 (three) to 5 (five) Members selected from among the Members of the Supervisory Board. At least one Audit Committee Member has knowledge and skills in the area of accounting or auditing the financial statements.
Most members of the Audit Committee, including its Chairperson, are independent of the Bank within the meaning of Article 129(3) of the Act on Statutory Auditors, Audit Firms and Public Supervision dated 11 May 2017 (“Act”).
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Bank Pekao S.A.
Members of the Audit Committee have the necessary skills to adequately perform the assigned function, including relevant education and work experience. The qualifications of the Members of the Supervisory Board, including the education and experience of the Members of the Audit Committee, along with an indication of how they were acquired, are presented on the Bank’s website. 22
Meetings of the Audit Committee are held depending on current needs, but in no case less frequently than four times per year, at dates that are crucial for the Bank’s quarterly reporting cycle and that stem from the analysis of the annual audit plan submitted by the Head of the Internal Audit Department.
In 2024, the Audit Committee held 12 meetings.
From 1 January 2024 to 17 April 2024, the composition of the Audit Committee was as follows:
1) Marcin Izdebski - Secretary of the Committee,
2) Sabina Bigos-Jaworowska - Member of the Committee (independent member),
3) Michał Kaszyński - Member of the Committee (independent member)
On 17 April 2024, the Bank’s Annual General Meeting, taking into account the assessment of the fulfllment of suitability requirements, appointed the Members of the Supervisory Board for a new joint term of office of three years, beginning on 18 April 2024.
On 22 April 2024, the Supervisory Board of the Bank appointed the members of the Audit Committee of the Supervisory Board of the Bank in the person of:
1) Mr Jacek Nieścior,
2) Mr Robert Sochacki,
3) Mr Artur Nowak-Far,
4) Mrs Anna Wawrzyńczak-Palynyczak,
5) Mr Radosław Niedzielski.
On 22 April 2024, the Supervisory Board of the Bank elected, taking into account its assessment of individual suitability, Mr Jacek Nieścior as Chairman of the Audit Committee of the Supervisory Board of the Bank for the period until the end of the current term of office of the Supervisory Board of the Bank.
On 8 May 2024, the Supervisory Board delegated a Member of the Supervisory Board of the Bank, Mr Robert Sochacki, to act as Vice President of the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna in charge of the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna, and a Member of the Supervisory Board of the Bank, Mrs Anna Wawrzyńczak- Palynyczak, to act as Vice President of the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna.
Accordingly, during the reporting period, i.e. as of 1 July 2024, the Audit Committee was comprised of the following members:
1) Mr Jacek Nieścior - Chairman of the Committee,
2) Mr Radosław Niedzielski - Member of the Committee,
3) Mr Artur Nowak-Far - Member of the Committee.
On 9 July 2024, the Supervisory Board of the Bank, through an open qualification process and after an assessment of suitability, appointed the following as of 10 July 2024, Mr Robert Sochacki to the Management Board of the Bank for the current joint term of office as Vice President of the Management Board of the Bank. In connection with his appointment to the Management Board of the Bank, Mr Robert Sochacki resigned from the Supervisory Board of the Bank effective 9 July 2024.
On 6 September 2024, the Bank’s Extraordinary General Meeting, taking into account the assessment of the fulfllment of suitability requirements, appointed Mr Witold Walkowiak to the Supervisory Board of the Bank for a joint term of office of three years, which began on 18 April 2024.
On 20 September 2024, the Supervisory Board of the Bank appointed Mr Krzysztof Czeszejko-Sochacki to the Audit Committee of the Supervisory Board of the Bank, taking into account the assessment of individual suitability.
On 20 September 2024, the Supervisory Board of the Bank appointed Mr Witold Walkowiak to the Audit Committee of the Supervisory Board of the Bank, taking into account the assessment of individual suitability.
22 https://www.pekao.com.pl/o-banku/wladze-banku.html
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Bank Pekao S.A.
On 18 December 2024, Mrs Anna Wawrzyńczak-Palynyczak resigned from membership in the Supervisory Board of the Bank, effective as of 18 December 2024.
Accordingly, the composition of the Audit Committee of the Supervisory Board of the Bank was as follows:
1) Mr Jacek Nieścior - Chairman of the Committee,
2) Mr Krzysztof Czeszejko-Sochacki - Member of the Committee,
3) Mr Artur Nowak-Far - Member of the Committee,
4) Mr Radosław Niedzielski - Member of the Committee,
5) Mr Witold Walkowiak - Member of the Committee.
Mr Jacek Nieścior, Mr Krzysztof Czeszejko-Sochacki, Mr Artur Nowak-Far, Mr Radosław Niedzielski and Mr Witold Walkowiak meet the criteria for independence.
The Bank, as a public interest entity based on resolutions of the Supervisory Board of the Bank, has implemented the policies and procedures specified in Article 130 (1) (5-7) of the Act, i.e.:
1) “Policy on the selection of an audit firm to conduct the statutory audit of the financial statements of Bank Pekao S.A. and the rules of cooperation with the audit firm, the statutory auditor and the supervisory authority” (hereinafter referred to as “Selection policy”),
2) “Procedure for the selection of an audit firm to conduct the statutory audit of the financial statements of Bank Pekao S.A.” (hereinafter referred to as “Selection procedure”),
3) “Policy for the provision of permitted non-audit services by the audit firm that performs the audit, affiliates of the audit firm, and a member of the audit firm’s network” (hereinafter referred to as “Service provision policy”).
The Selection policy sets forth the following rules for mandatory rotation and grace period of the audit firm and key certified auditor:
1) The maximum uninterrupted duration of statutory audit assignments performed by the same audit firm or an audit firm affiliated with that audit firm or any member of the network operating in European Union countries to which those audit firms belong cannot exceed 10 years and 5 years for the key certified auditor, respectively.
2) The first audit contract is concluded with the audit firm for a period of not less than 2 years, with the possibility of renewal for a further period of at least two years.
3) After the expiration of the maximum assignment periods, the Bank may not outsource a statutory audit to an audit firm or any entity from its network operating within the European Union for a further 4 years, and in the case of the key certified auditor, after at least 3 years from the completion of the last statutory audit,
4) A key certified auditor may not conduct a statutory audit of financial statements for more than 5 years.
In accordance with the Selection procedure, the purchasing procedure to select an audit firm is conducted in the form of a tender. Following the Selection procedure organised by the Bank, the Audit Committee submits a recommendation to the Supervisory Board on the selection of the audit firm. This recommendation, unless it concerns the renewal of an audit assignment, includes no less than two options for the selection of an audit firm, along with a justification and an indication of a reasonable preference for one of them. On the other hand, if the contract with the audit firm is renewed, the Audit Committee recommends that the Supervisory Board select the existing audit firm. The Supervisory Board, after reviewing the recommendation and (in the case of non-renewal of the assignment) the preference of the Audit Committee, selects the audit firm, specifying the years for which the Bank’s financial statements and the consolidated financial statements of the Bank Group will be subject to statutory audit by the selected audit firm.
Prior to the amendment of the Selection procedure in 2023, in the event of renewal of the audit firm’s contract, the Audit Committee recommended that the Supervisory Board submit a proposal to the General Meeting for the selection of the existing audit firm. The Supervisory Board, after reviewing the recommendation and (in the case of non-renewal of the assignment) the preference of the Audit Committee, presented a proposal to the General Meeting on the appointment of an audit firm. The audit firm was selected by the General Meeting, specifying the years for which the Bank’s financial statements and the consolidated financial statements of the Bank Group were subject to statutory audit by the selected audit firm.
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Bank Pekao S.A.
On 7 November 2023 the Supervisory Board of the Bank adopted a resolution on the selection of PricewaterhouseCoopers Polska Spółka z ograniczoną odpowiedzialnością Audyt Sp.k. to audit the Bank’s financial statements and the consolidated financial statements of the Bank Group covering the five financial years from 2024 to 2028, subject to an option to extend the contract for two further financial years 2029 and 2030.
The Service provision policy specifies that the provision of permitted non-audit services by the audit firm performing the audit, affiliates of the audit firm, and a member of the audit firm’s network to the Bank requires the approval of the Audit Committee. In addition, the Audit Committee approves the provision of permitted non-audit services to the Bank’s subsidiaries based on the company’s request. A necessary element of such a request is the approval of the audit committee of the requesting subsidiary of the Bank. Bank Group entities are also required to obtain approval from the Audit Committee of the parent company (PZU S.A.) for the purchase of a permitted non-audit service. In 2024, the audit firm PricewaterhouseCoopers Polska Spółka z ograniczoną odpowiedzialnością Audyt Sp.k. provided permitted non-audit services to Bank and its subsidiaries. Prior to entering into a contract for permitted non-audit services, the Audit Committee, the Audit Committee of the public interest subsidiary, and the Audit Committee of the parent of the Bank have assessed the independence of the audit firm and agreed to the provision of these services.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee operates on the basis of the Regulations of the Supervisory Board adopted by resolution of the Supervisory Board of the Bank No. 116/23 dated 18 October 2023 and the Regulations of the Nomination and Remuneration Committee of the Supervisory Board of Bank Polska Kasa Opieki Spółka Akcyjna adopted by resolution of the Supervisory Board of the Bank No. 117/23 dated 18 October 2023.
The purpose of the Nomination and Remuneration Committee is to support the Supervisory Board in performance of its tasks related, for instance, to shaping the composition of the Management Board of the Bank and supervising the policy of the Management Board of the Bank in relation to the selection and appointment of persons holding managerial positions at the Bank. The Committee, in its activity, aims at prudent and stable management of risk, capital and liquidity as well as at special care for the long-term interests of the Bank and of its shareholders.
The tasks of the Nomination and Remuneration Committee include, but are not limited to:
1) adopting a policy of diversity in the composition of the Management Board of the Bank and Supervisory Board, taking into account a wide set of features and competences required for persons performing the function of Management Board members;
2) recommending candidates for the Management Board of the Bank, taking into account the necessary knowledge, competence and experience of the Management Board as a whole, necessary to manage the Bank, and taking into account the diversity in the composition of the Management Board of the Bank,
3) specifying the scope of duties of the candidate for the Management Board of the Bank, as well as the requirements in terms of knowledge and competence as well as the expected commitment in terms of time devoted, necessary to perform the function,
4) determining the target value of representation of under-represented gender in the Management Board of the Bank and Supervisory Board and developing a diversity policy in the composition of the Management Board of the Bank and Supervisory Board aimed at achieving this target value,
5) periodically assessing, at least once a year, the structure, size, composition and effectiveness of the Management Board of the Bank as well as recommending changes in this regard to the Supervisory Board,
6) periodically assessing, at least once a year, the knowledge, competences and experience of the Management Board of the Bank as a whole and individual Members of the Management Board of the Bank as well as informing the Management Board of the Bank about the results of this assessment,
7) periodically reviewing the policy of the Management Board of the Bank regarding the selection and appointment of persons holding managerial positions at the Bank as well as presenting recommendations in this regard to the Management Board of the Bank,
8) submitting recommendations to the Supervisory Board regarding: a) assessment of the individual suitability of candidates for members of the Management Board of the Bank and members of the Supervisory Board at the stage of appointment to these bodies and members of these bodies in the course of performing their duties in the situations specified in the “Policy of Assessing the Suitability of the Proposed and Appointed Members of the Management Board, Supervisory Board and Key Function Holders at Bank Polska Kasa Opieki Spółka Akcyjna”, b) assessment of the collective suitability of the Management Board of the Bank and Supervisory Board in order to ensure an appropriate level of collective management or supervision of the Bank, c) succession plans for members of the Management Board of the Bank to ensure continuity of management.
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In 2024, the Nomination and Remuneration Committee held 14 meetings.
From 1 January to 17 April 2024, the composition of the Nomination and Remuneration Committee was as follows:
1) Beata Kozłowska-Chyła - Chairwoman of the Committee,
2) Małgorzata Sadurska - Secretary of the Committee,
3) Sabina Bigos-Jaworowska - Member of the Committee,
4) Marian Majcher - Member of the Committee,
5) Stanisław Ryszard Kaczoruk - Member of the Committee,
6) Michał Kaszyński - Member of the Committee
On 17 April 2024, the Bank’s Annual General Meeting, taking into account the assessment of the fulfllment of suitability requirements, appointed the Members of the Supervisory Board of the Bank for a new joint term of office of three years, beginning on 18 April 2024.
On 22 April 2024, the Supervisory Board of the Bank appointed the members of the Nomination and Remuneration Committee of the Supervisory Board of Bank Polska Kasa Opieki Spółka Akcyjna:
1) Mr Bartosz Grześkowiak,
2) Mr Jacek Nieścior,
3) Mr Robert Sochacki,
4) Mr Artur Nowak-Far,
5) Mr Artur Olech.
On 24 April 2024, the Nomination and Remuneration Committee elected Mr Artur Nowak-Far as Chairman of the Committee, taking into account his assessment of individual suitability.
On 24 April 2024, the Nomination and Remuneration Committee elected Mr Bartosz Grześkowiak as Secretary of the Committee, taking into account his assessment of individual suitability.
On 8 May 2024, the Supervisory Board of the Bank delegated a Member of the Supervisory Board of the Bank, Mr Robert Sochacki, to act as Vice President of the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna in charge of the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna.
Accordingly, during the reporting period, i.e. as of 1 July 2024, the Nomination and Remuneration Committee comprised the following members:
1) Mr Artur Nowak-Far - Chairman of the Committee,
2) Mr Bartosz Grześkowiak - Secretary of the Committee,
3) Mr Artur Olech - Member of the Committee,
4) Mr Jacek Nieścior - Member of the Committee.
On 9 July 2024, the Supervisory Board of the Bank, through an open qualification process and after an assessment of suitability, appointed the following as of 10 July 2024, Mr Robert Sochacki to the Management Board of the Bank for the current joint term of office as Vice President of the Management Board of the Bank. In connectionwith his appointment to the Management Board of the Bank, Mr Robert Sochacki resigned from the Supervisory Board of the Bank effective 9 July 2024.
On 6 September 2024, the Bank’s Extraordinary General Meeting, taking into account the assessment of the fulfllment of suitability requirements, appointed Mr Witold Walkowiak to the Supervisory Board of the Bank for a joint term of office of three years, which began on 18 April 2024.
On 20 September 2024, the Supervisory Board of the Bank appointed Mr Witold Walkowiak to the Nomination and Remuneration Committee, taking into account the assessment of individual suitability.
On 28 November 2024, the Bank’s Extraordinary General Meeting, taking into account the assessment of the fulfllment of suitability requirements, appointed Mrs Magdalena Joanna Dziewguć to the Supervisory Board of the Bank for a joint term of office of three years, which began on 18 April 2024.
On 11 December 2024, the Supervisory Board of the Bank appointed Mrs Magdalena Joanna Dziewguć to the Nomination and Remuneration Committee, taking into account the assessment of individual suitability.
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Accordingly, the composition of the Nomination and Remuneration Committee was as follows:
1) Mr Artur Nowak-Far - Chairman of the Committee,
2) Mr Bartosz Grześkowiak - Secretary of the Committee,
3) Mr Artur Olech - Member of the Committee,
4) Mr Jacek Nieścior - Member of the Committee,
5) Mr Witold Walkowiak - Member of the Committee.
6) Mrs Magdalena Joanna Dziewguć - Member of the Committee
Mr A. Nowak-Far, Mr J. Nieścior, Mr W. Walkowiak and Mrs M. J. Dziewguć meet the criteria for independence.
Risk Committee
The Risk Committee operates on the basis of the Regulations of the Supervisory Board adopted by resolution of the Supervisory Board of the Bank No. 116/23 dated 18 October 2023 and the Regulations of the Risk Committee of the Supervisory Board of Bank Polska Kasa Opieki Spółka Akcyjna adopted by resolution of the Supervisory Board of the Bank No. 119/23 dated 18 October 2023.
It is the mission of the Committee to support the Supervisory Board in the performance of its duties relating to exercising supervision over the risk management system and to assessing adequacy and effectiveness of that system. The Committee, in its activity, aims at prudent and stable management of risk, capital and liquidity as well as at special care for the long-term interests of the Bank and of its shareholders.
The tasks of the Risk Committee include, among other things, expressing opinions within the scope of:
1) overall current and future readiness of the Bank to take risks, expressed as risk appetite,
2) strategy for managing risk in the Bank’s activity, developed by the Management Board of the Bank, including policies on credit, financial and operational risks,
3) reports concerning risk profile and realisation of the risk management strategy, submitted by the Management Board of the Bank.
In addition, the Risk Committee assists the Supervisory Board in overseeing the implementation of risk management strategies in the Bank’s operations and verifies that the overall pricing of liabilities and assets offered to customers fully takes into account the Bank’s business strategies and risks.
In 2024, the Risk Committee held 13 meetings.
From 1 January to 17 April 2024, the composition of the Risk Committee was as follows:
1) Mr Stanisław Ryszard Kaczoruk - Chairman of the Committee,
2) Mr Marcin Izdebski - Secretary of the Committee,
3) Mr Michał Kaszyński - Member of the Committee,
4) Mr Marian Majcher - Member of the Committee,
5) Mrs Małgorzata Sadurska - Member of the Committee
On 17 April 2024, the Bank’s Annual General Meeting, taking into account the assessment of the fulfllment of suitability requirements, appointed the Members of the Supervisory Board of the Bank for a new joint term of office of three years, beginning on 18 April 2024.
On 22 April 2024, the Supervisory Board of the Bank appointed the members of the Risk Committee of the Supervisory Board of Bank Polska Kasa Opieki Spółka Akcyjna:
1) Mr Krzysztof Czeszejko-Sochacki,
2) Mr Radosław Niedzielski,
3) Mr Jacek Nieścior,
4) Mr Robert Sochacki
On 29 April 2024, the Risk Committee elected Mr Krzysztof Czeszejko-Sochacki as Chairman of the Committee, taking into account his assessment of individual suitability.
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Bank Pekao S.A.
On 8 May 2024, the Supervisory Board delegated a Member of the Supervisory Board of the Bank, Mr Robert Sochacki, to act as Vice President of the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna in charge of the Management Board of Bank Polska Kasa Opieki Spółka Akcyjna.
Accordingly, during the reporting period, i.e. as of 1 July 2024, the Risk Committee was as follows:
1) Mr Krzysztof Czeszejko-Sochacki - Chairman of the Committee,
2) Mr Robert Niedzielski - Member of the Committee,
3) Mr Jacek Nieścior - Member of the Committee.
On 9 July 2024, the Supervisory Board of the Bank, through an open qualification process and after an assessment of suitability, appointed the following as of 10 July 2024, Mr Robert Sochacki to the Management Board of the Bank for the current joint term of office as Vice President of the Management Board of the Bank. In connection with his appointment to the Management Board of the Bank, Mr Robert Sochacki resigned from the Supervisory Board of the Bank effective 9 July 2024.
On 6 September 2024, the Bank’s Extraordinary General Meeting, taking into account the assessment of the fulfllment of suitability requirements, appointed Mr Witold Walkowiak to the Supervisory Board of the Bank for a joint term of office of three years, which began on 18 April 2024.
On 20 September 2024, the Supervisory Board of the Bank appointed Mr Witold Walkowiak to the Risk Committee, taking into account the assessment of individual suitability.
On 23 September 2024, the Risk Committee elected Mr Witold Walkowiak as Secretary of the Committee, taking into account his assessment of individual suitability.
On 28 November 2024, the Bank’s Extraordinary General Meeting, taking into account the assessment of the fulfllment of suitability requirements, appointed Mrs Magdalena Joanna Dziewguć to the Supervisory Board of the Bank for a joint term of office of three years, which began on 18 April 2024.
On 11 December 2024, the Supervisory Board of the Bank appointed Mrs Magdalena Joanna Dziewguć to the Risk Committee, taking into account the assessment of individual suitability.
Accordingly, the composition of the Risk Committee was as follows:
1) Mr Krzysztof Czeszejko-Sochacki - Chairman of the Committee,
2) Mr Witold Walkowiak - Secretary of the Committee,
3) Mr Radosław Niedzielski - Member of the Committee,
4) Mr Jacek Nieścior - Member of the Committee,
5) Mrs Magdalena Joanna Dziewguć - Member of the Committee.
Mr K. Czeszejko-Sochacki, Mr R. Niedzielski, Mr J. Nieścior, Mr W. Walkowiak and Mrs M. J. Dziewguć meet the criteria for independence.
10. Description of the diversity policy applied to the Bank’s administrative, management and supervisory bodies with particular reference to age, gender or education and work experience, the objectives of the diversity policy, how it was implemented and its effects during the reporting period in question 23
On 3 November 2020, the Management Board of the Bank adopted by resolution and on 4 November 2020, the Supervisory Board of the Bank approved by resolution the “Gender equality and diversity policy with regard to the Bank’s employees, including Members of the Supervisory Board, Members of the Management Board, and Key Function Holders at Bank Polska Kasa Opieki Spółka Akcyjna” (hereinafter referred to as “Policy”). By way of Resolution No. 34, the Annual General Meeting of the Bank adopted on 15 June 2022 the Policy insofar as it relates to members of the Supervisory Board of Bank Polska Kasa Opieki Spółka Akcyjna, with the exception of § 8 of the Policy. The resolution of the Annual General Meeting referred to above in § 2 states that: “In order to ensure sufficient gender diversity in the Supervisory Board, the Bank will strive to achieve the 30% ratio as the target minimum value of participation of representatives of each of the two sexes in the Supervisory Board. The Bank shall each time strive to achieve this indicator at the earliest possible date, but not earlier than the end of the term of office of the Supervisory Board”.
23 § 70, paragraph 6, item 5, letter m of the Regulation of the Minister of Finance dated 29 March 2018.
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The Policy defines the Bank’s strategy for managing diversity of the Bank’s employees, including diversification in relation to the selection of Members of the Supervisory Board, Members of the Management Board and Key Function Holders at the Bank, as well the guidelines aimed at ensuring that the Bank’s employees are able to manage their career, achieve success, and assess their work on the basis of individual achievements, regardless of gender.
The aim of the Bank’s Diversity Strategy is to ensure high quality performance of tasks by the Bank’s employees, including the selection of competent persons to perform functions on the Supervisory Board, Management Board and Key Functions at the Bank, applying first of all objective substantive criteria and taking into account the benefits arising from Diversity.
The Bank’s Diversity Strategy covers and exploits differences which, in addition to knowledge, skills, and professional experience, result from the field of education, geographical origin, gender, and age in order to achieve the best results. Diversity Strategy in regard to the selection of Members of the Supervisory Board/Management Board/people performing Key Functions at the Bank is implemented in the selection, suitability assessment and succession processes.
The current share of women in management positions at the Bank is > 55.2%, and in senior management positions > 35.8%.
The application of the diversity policy applies to decision-making processes in the areas of: external selection, internal appointments, succession planning, taking into account equal treatment provisions in the establishment of the employment relationship that take into account the principle of gender equality.
Given the regulations adopted in this regard and the importance that the Management Board of the Bank places on the values outlined in the Policy, it is under constant review.
In 2021 - 2024, the proportion of women and men on the Management Board of the Bank was as follows:
31.12.2021
31.12.2022
31.12.2023
31.12.2024
No. of persons
%
No. of persons
%
No. of persons
%
No. of persons
%
Women
1
11%
1
11%
1
11%
1
16.7%
Men
8
89%
8
89%
8
89%
5
83.3%
Total
9
100%
9
100%
9
100%
6
100%
In 2021 - 2024, the proportion of women and men on the Supervisory Board of the Bank was as follows:
31.12.2021
31.12.2022
31.12.2023
31.12.2024
No. of persons
%
No. of persons
%
No. of persons
%
No. of persons
%
Women
5
55.5%
5
55.5%
5
55.5%
1
12.5%
Men
4
44.5%
4
44.5%
4
44.5%
7
87.5%
Total
9
100%
9
100%
9
100%
8
100%
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13. Statement on sustainability of the Bank Polska Kasa Opieki Spółka Akcyjna
13.1 General Information
13.1.1 Principles for Preparing the Sustainability Statement [BP-1] [BP-2]
The consolidated sustainability statement of Bank Pekao S.A. Capital Group (hereinafter: “Pekao Group”) has been prepared in accordance with the Accounting Act of 29 September 1994, as well as the provisions of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on establishing a framework to facilitate sustainable investment. It also complies with the European Sustainability Reporting Standards (ESRS), introduced by Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023, supplementing Directive 2013/34/EU of the European Parliament and of the Council regarding sustainability reporting standards.
Pekao Group reports non-financial data on an annual basis. This statement covers sustainability information related to the Capital Group for the period from 1 January 2024 to 31 December 2024. The data has been fully consolidated, and the consolidation scope aligns with the financial statements.
The Capital Group consists of: Bank Pekao Kasa Opieki Spółka Akcyjna (hereinafter: “Bank Pekao”) as the parent entity, along with its subsidiaries and indirect subsidiaries, which operate in the banking, asset management, brokerage services, transaction advisory, leasing, and factoring markets. Additionally, Bank Pekao holds shares and equity interests in associated entities, as well as minority investments.
In 2024, Pekao Group comprised Bank Pekao and the following subsidiaries and indirect subsidiaries:
COMPANY NAME
REGISTERED OFFICE
BUSINESS ACTIVITY
Pekao Bank Hipoteczny S.A.
Warsaw
Banking
Centrum Kart S.A.
Warsaw
Financial auxiliary service
Pekao Direct Sp. z o.o.
Kraków
Call-centre services
Pekao Faktoring Sp. z o.o.
Lublin
Factoring services
Pekao Financial Services Sp. z o.o.
Warsaw
Transfer agent services
Pekao Investment Banking S.A.
Warsaw
Brokerage services
Pekao Investment Management S.A., including:
Warsaw
Holding
Pekao TFI S.A.
Warsaw
Asset management
Pekao Leasing Sp. z o.o., including:
Warsaw
Leasing services
PEUF Sp. z o.o.
Warsaw
Insurance services
Pekao Fundusz Kapitałowy Sp. z o.o. (in liquidation)
Warsaw
No operational activity
Pekao Property S.A. (in liquidation), including:
Warsaw
No operational activity
PB Media Sp. z o.o. (in bankruptcy)
Warsaw
No operational activity
The statement applies to the entire value chain, both upstream and downstream, within Pekao Group. Pekao Group has not exercised the right to omit specific information related to intellectual property, know-how, or innovation results. Furthermore, it has not deviated from the medium- and long-term time perspectives defined in ESRS. The metrics presented in the report do not include data concerning the value chain estimates derived from indirect sources.
The double materiality analysis process and the Statement contain forward-looking information. As such, assumptions and judgments were applied, including forecasts and projections regarding, among other factors, climate risks, transition risks, and opportunities. Forward-looking information reflects the Group's current expectations and may be subject to uncertainty and changes, particularly due to economic conditions, regulatory changes, market shifts, or climate-related developments.
For the first time, the 2024 statement has been prepared in line with the European Sustainability Reporting Standards (EU ESRS). In previous years, Pekao Group published a non-financial report based on GRI Standards (GRI 1: Foundation 2021).
External Verification
This Sustainability Statement of Pekao Group has undergone limited assurance attestation, in compliance with applicable requirements. The assurance was conducted by the audit firm PricewaterhouseCoopers Polska Spółka z ograniczoną odpowiedzialnością Audyt Spółka komandytowa, in accordance with the National Assurance Standard 3002 for assurance engagements other than audits or reviews of historical financial information and the National Standard on Assurance Services Other than Audits and Reviews 3000 (Z) as read in the International Standard on Assurance Services 3000 (revised) “Assurance Services Other than Audits and Reviews of Historical Financial Information”.
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13.1.2 Corporate Governance
Bank Pekao S.A. is one of the largest financial institutions in Central and Eastern Europe and the second-largest universal bank in Poland, with total assets exceeding PLN 319 billion.
Bank Pekao operates as a joint-stock company, conducting its business in compliance with applicable legal regulations, particularly the Banking Law Act, the Commercial Companies Code, and the Statute of Bank Pekao (hereinafter: “Bank Pekao Statute”). The consolidated version of the Statute of Bank Pekao is available at: https://www.pekao.com.pl/o-banku/lad- korporacyjny.html. Bank Pekao operates within the territory of the Republic of Poland, with its head office located in Warsaw, at ul. Żubra 1 (postal code: 01-066).
The Polish Financial Supervision Authority (KNF – Komisja Nadzoru Finansowego) oversees the bank’s activities. Since 1998, Bank Pekao has been listed on the Warsaw Stock Exchange, and since 2017, it has been part of PZU S.A. Capital Group (hereinafter: “PZU Group”).
13.1.2.1 Role of Administrative, Management, and Supervisory Bodies [GOV-1]
Both Bank Pekao and its Group entities have an organisational structure tailored to their size and business profile. The competencies of corporate bodies are defined by legal regulations, in particular: the Commercial Companies Code , the Banking Law Act , supervisory recommendations from regulatory authorities , the Statute of Bank Pekao , the articles of association and internal regulations of the Group entities.
General Meeting of Shareholders
The General Meeting of Shareholders (hereinafter: “GMS”) is the highest governing body of Bank Pekao. It operates under the Commercial Companies Code and the Statute of Bank Pekao . The competencies of the GMS are defined by legal regulations, particularly the Commercial Companies Code , the Banking Law Act , supervisory recommendations, and the Statute of Bank Pekao . Resolutions are adopted by absolute majority, unless otherwise specified by the Commercial Companies Code or the Statute of Bank Pekao .
Supervisory Board
The Supervisory Board is responsible for the ongoing oversight of Bank Pekao’s activities. It consists of seven to nine members, appointed by the GMS for a joint three-year term. As of 31 December 2024, the Supervisory Board comprised eight members, including seven men (87.5%) and one woman (12.5%). 75% of the members were independent. None of the Supervisory Board members belonged to underrepresented social groups. The Chairman of the Supervisory Board was not a member of the executive management.
The organisation and operation of the Bank’s Supervisory Board are defined by the Rules of Procedure the Supervisory Board of the Bank S.A.
The composition of the Bank’s Supervisory Board was as follows:
AS AT THE DATE OF SUBMISSION
OF THE 2024 REPORT
31.12.2024
Artur Olech
Chairman of the Supervisory Board
Artur Olech
Chairman of the Supervisory Board
Bartosz Grześkowiak
Deputy Chairman of the Supervisory Board
Bartosz Grześkowiak
Deputy Chairman of the Supervisory Board
Artur Nowak-Far
Deputy Chairman of the Supervisory Board
Artur Nowak-Far
Deputy Chairman of the Supervisory Board
Krzysztof Czeszejko-Sochacki
Member of the Supervisory Board
Krzysztof Czeszejko-Sochacki
Member of the Supervisory Board
Magdalena Joanna Dziewguć
Member of the Supervisory Board
Magdalena Joanna Dziewguć
Member of the Supervisory Board
Radosław Niedzielski
Member of the Supervisory Board
Radosław Niedzielski
Member of the Supervisory Board
Jacek Nieścior
Member of the Supervisory Board
Jacek Nieścior
Member of the Supervisory Board
Witold Walkowiak
Member of the Supervisory Board
Witold Walkowiak
Member of the Supervisory Board
The Bank’s Supervisory Board performs its duties collectively; however, for the execution of specific tasks or to streamline its work, it may appoint committees and teams from among its members. Further details on the committees of the Supervisory Board can be found in section 13.1.2.2.
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In connection with the implementation of the CSRD Directive in the 2024 reporting year, the Supervisory Board has not yet fully identified the necessary competencies regarding the management of impacts, risks, and opportunities (IRO). Within the Supervisory Board, there is an Audit Committee, which addresses issues related to sustainable development and has access to knowledge in this area. However, considering that sustainable development is a rapidly evolving field requiring the continuous expansion of knowledge and skills, we plan to undertake actions in the near future to support the further development of the Supervisory Board members’ competencies. This will enable effective management of these issues in the future.
Management Board of the Bank
The Bank’s Management Board manages the Bank’s affairs and represents it. All matters not reserved for the competence of other bodies by law or the Statute of the Bank fall within the scope of the Management Board’s activities.
The Bank’s Management Board consists of between five and nine members, appointed for a joint term lasting three full financial years. In 2024, the Management Board operated with nine members, and changes in the Bank’s management were carried out in accordance with the provisions of the Banking Law Act of 29 August 1997 and the Statute of the Bank .
As of 31 December 2024, the Bank’s Management Board consisted of six members, including five men (83.3%) and one woman (16.7%), resulting in a gender ratio of 1:5. The Management Board of Bank Pekao S.A. did not include a representative of employees or other individuals providing work.
None of the persons appointed to the Bank’s Management Board, in accordance with their submitted statements, conduct competitive activities against the Bank, participate in a competing company as a partner in a civil partnership, general partnership, limited partnership, or capital company, nor are they members of a competing legal entity’s governing body. Moreover, none of the appointed persons are listed in the Register of Insolvent Debtors maintained under the Act of 20 August 1997 on the National Court Register.
The Bank’s Supervisory Board, following conducted assessments, confirmed that all members of the Management Board, as well as the Management Board as a whole, meet the requirements set out in Article 22aa of the Banking Law Act of 29 August 1997 and the suitability requirements specified in the Policy for the Selection and Suitability Assessment of Candidates for the Management Board and Key Function Holders as well as the suitability assessment of proposed and appointed members of the Management Board, the Supervisory Board, and key function holders at Bank Polska S.A.
More information regarding the Bank’s organisational and governance structure can be found in sub-section 5.2.
Suitability Assessment
The Bank adheres to the Policy for the Selection and Suitability Assessment of Candidates for the Management Board, Supervisory Board and Key Function Holders , approved by the Supervisory Board on 30 December 2020 (hereinafter: “Selection and Suitability Assessment Policy ”). Its purpose is to ensure an optimal and uniform process for selecting candidates for Management Board and Key Function positions so that tasks related to the implementation of the Bank’s business plans and strategies are performed by individuals possessing the necessary knowledge, experience, and skills, while also maintaining a good reputation.
The Selection and Suitability Assessment Policy also defines the criteria for assessing the individual and collective suitability of candidates and members of the Bank’s Management Board, the Supervisory Board, and key function holders both at the appointment stage and throughout their tenure. It also outlines the events triggering a suitability assessment, the process for conducting such assessments – including roles and responsibilities – and the consequences of the assessment, including corrective measures necessary to ensure compliance with suitability requirements.
In 2024, initial and subsequent individual suitability assessments were conducted, as well as collective suitability assessments of the Supervisory Board and Management Board members. Additionally, suitability assessments were conducted following changes in the roles held by the Bank’s governing body members.
Subsidiaries have implemented Suitability Assessment Policies in accordance with applicable legal regulations.
Responsibility for Sustainable Development
The Bank’s Management Board, in its daily communication with employees, emphasises the importance of ESG factors in building a sustainable organisation that:
• Maintains high corporate governance standards;
• Adopts an ethical approach to business;
• Undertakes initiatives for society and the environment;
• Supports the development of human capital.
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Transparency in ESG policies and sustainability reporting remains a priority for us. Therefore, sustainability is an area of ongoing focus for the management team, including the Board and senior management of the Bank Pekao S.A. The Board of the Bank possesses the requisite expertise in sustainability and plays a pivotal supervisory role, performing several critical tasks, including:
• Approval of ESG reports: The Board holds primary responsibility for the preparation and approval of sustainability reports, ensuring that the data within these documents is accurate, reliable, and compliant with applicable regulations. The Board is accountable for the completeness and correctness of these reports;
• Responsibility for risk management: The Board is responsible for managing risks, including financial risks and those associated with sustainability reporting;
• Legal compliance: The Board ensures compliance with legal requirements related to sustainability;
• Management of the sustainability reporting process: The Board is responsible for the strategy and process of sustainability reporting within the organization, including the implementation of relevant procedures and methodologies to ensure compliance with ESG reporting requirements and transparency in this area.
The ESG Council, established by a resolution of the Management Board in 2020, acts as an advisory body coordinating ESG- related matters, including sustainability reporting. Its main tasks include:
• Supporting decision-making processes concerning ESG issues;
• Identifying strategic directions and the Bank’s engagement in corporate social responsibility and sustainable development projects;
• Providing guidance on the development of sustainable banking products and services;
• Reviewing the engagement of the Bank’s subsidiaries in ESG-related projects while considering their specific business activities and autonomy.
In 2024, the ESG Council did not address material impacts, risks, and opportunities. However, in December 2024, in response to the need for better management of these issues, the Council’s competencies were expanded to include monitoring the management of impacts, risks, and opportunities associated with the Bank’s operations and approving the results of the double materiality analysis. Sustainable development objectives are monitored by the directors of units accountable for their implementation.
The ESG Council comprises four Management Board members:
• Marcin Gadomski – Vice President of the Management Board overseeing the Risk Management Division, including ESG risk, responsible for supervising the bancassurance risk management process. Chairman of the ESG Council;
• Dagmara Wojnar – Vice President of the Management Board supervising the Finance Division, responsible for overseeing the Whistleblowing Procedure. Deputy Chairwoman of the ESG Council;
• Robert Sochacki – Vice President of the Management Board supervising the Corporate Banking, Markets, and Investment Banking Division, the Business Banking Division, and the Pekao Brokerage House. Member of the ESG Council;
• Błażej Szczecki – Vice President of the Management Board supervising the the Retail and Private Banking Division. Member of the ESG Council.
Additionally, the ESG Council includes representatives from key Bank entities responsible for ESG-related matters (both business and support functions).
The Council meets at least once per quarter.
13.1.2.2 Information Provided to Administrative, Management, and Supervisory Bodies and Their Engagement in Sustainability Matters [GOV-2]
In 2024, we conducted our first double materiality assessment, enabling us to identify key impacts, risks, and opportunities arising from our business activities. This analysis expanded our perspective on these areas, considering both impacts and risks as well as potential opportunities that may drive our further development.
As we have identified new areas of impact and opportunity, we are currently working on developing management mechanisms, systematic monitoring of results, and evaluating the effectiveness of policies, actions, indicators, and sustainability goals. This will allow us to effectively implement and oversee initiatives supporting the realisation of identified impacts and opportunities in the future.
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In 2024, the Board did not receive regular reports on matters related to significant impacts, risks, and opportunities (IRO). Nevertheless, selected elements of IRO, such as:
• Organizing financing for new sustainable projects,
• Supporting the energy transition of our clients and the shift to a low-emission economy,
• Implementing various actions aimed at achieving climate neutrality,
• Fostering employee development with respect for diversity and creating an attractive workplace, which will remain the foundation of our actions,
• Reducing the gender pay gap,
• Raising societal awareness and environmental consciousness,
• Developing the Bank while maintaining high standards of corporate governance and ethical business practices,
were monitored by the Board as part of the Bank’s Strategy.
Regarding risk management, in line with internal regulations and established reporting processes, the following information is reported to the Bank’s Management Board on a quarterly basis:
• Utilisation of the strategic limit for ESG risk at the Bank and Group level;
• Progress on Bank’s ESG Strategy KPIs.
Annually, the Management Board receives a self-assessment report on compliance with applicable ESG requirements. Certain areas of IRO are also considered in the oversight of Bank’s Strategy, decision-making related to risk management processes, as well as decision concerning key transactions, such as establishing terms/limits for financing projects that have a positive environmental impact.
In accordance with internal regulations and reporting procedures, the ESG Council is informed quarterly on the following matters:
• Key ESG risk indicators at the Bank level;
• Accuracy of asset classification for selected Bank’s ESG Strategy KPI calculations;
• Progress on Bank’s ESG Strategy objectives, initiatives, and KPIs;
• Monitoring of compliance with regulatory requirements.
The impact of climate change mitigation and adaptation has been analysed by the ESG Council in terms of risk factors and market opportunities for the Bank
In 2024, key risk-related topics addressed by the Council included:
• Monitoring results of strategic ESG risk indicators within the Bank’s ESG risk management system, particularly regarding transition risk associated with Scope 3, Category 15 greenhouse gas emissions (Investments);
• Evaluation of ESG Strategy KPI achievements.
Additionally, the ESG Council assessed strategic directions and the potential for realising opportunities in selected areas of sustainable development, including:
• Development of products and services supporting customers in their sustainability transformation;
• Building the Bank’s reputation as a responsible institution supporting customers’ transition;
• Establishing cooperation with development banks and investors;
• Collaborating with industry organisations engaged in sustainability;
• Managing the Bank’s internal processes effectively.
The Supervisory Board reviews the Financial Statements of the Capital Group, including the Management Report, which incorporates the Sustainability Statement. It appoints the Audit Committee, the Nominations and Remuneration Committee, and the Risk Committee, all of which monitor specific areas of the Bank’s activities.
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The objective of the Audit Committee of the Supervisory Board is to support the Supervisory Board in fulfilling its responsibilities concerning sustainable development by:
• Monitoring the financial reporting process and sustainable development reporting, ensuring compliance with applicable laws and internal regulations governing the Bank’s operations;
• Monitoring the effectiveness of internal control systems as well as risk management and internal audit systems, including in the field of financial reporting;
• Supervising the financial audit process, including the review and assurance of sustainability reports conducted by the audit firm, taking into account any findings and recommendations issued by the Agency following inspections at the audit firm;
• Overseeing and monitoring the independence of the statutory auditor and the audit firm, particularly when the audit firm provides non-audit services to the public interest entity, beyond the statutory audit and assurance of sustainability reporting;
• Informing the Supervisory Board of the results of the audit or assurance of sustainability reporting and explaining how the process contributed to the reliability of financial reporting, sustainability reporting, or the consolidated sustainability reporting of the public interest entity, as well as clarifying the Audit Committee’s role in the review and assurance process;
• Performing other tasks as required by law.
The Nomination and Remuneration Committee of the Supervisory Board assists the Supervisory Board by:
• Submitting proposals regarding the terms of agreements governing the employment or other legal relationships between Management Board members and the Bank, including remuneration of the Management Board members, as well as approving the policy for variable remuneration components for senior executives in the Bank in line with separate regulations;
• Presenting proposals to the General Meeting concerning the remuneration of the Supervisory Board members;
• Preparing recommendations on meeting suitability requirements for the appointment of the Bank’s Management Board and Supervisory Board members in accordance with applicable regulations;
• Compiling reports for the General Meeting on the evaluation of the remuneration policy’s effectiveness within the Bank.
The Risk Committee is responsible, in particular, for:
• Evaluating the Bank’s overall current and future risk appetite.
• Assessing the risk management strategy developed by the Management Board, including policies related to credit, financial, and operational risks.
• Supporting the Supervisory Board in overseeing the implementation of the Bank’s risk management strategy by senior management and verifying whether the pricing of liabilities and assets offered to customers appropriately reflects the Bank’s business strategy and risk exposure. In cases where pricing does not adequately reflect the risk profile, recommending adjustments to the Management Board to ensure alignment with risk types and exposure;
• Presenting the Management Board of the Bank with proposals aiming to ensure that the prices of assets and liabilities are adequate to these risks.
The Management Board member responsible for risk management, as well as other individuals accountable for risk management at the Bank, may communicate directly with the Risk Committee or its individual members to discuss key issues, including potential inconsistencies with the Bank’s management strategy, risk management strategy, approved risk appetite, and other policies adopted by the Management Board.
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13.1.2.3 Incorporating Sustainability Performance into Incentive Systems [GOV-3]
The remuneration strategy, developed in line with the Bank’s operational standards, is reflected in internal regulations. It serves as a crucial mechanism for maintaining the Bank’s reputation and generating long-term value for all stakeholders.
The Remuneration Policy for Members of the Supervisory Board and Management Board of Bank Polska Kasa Opieki Spółka Akcyjna (hereinafter: “ Remuneration Policy ”) sets out the framework for determining, monitoring, and controlling the Bank’s remuneration principles and practices applicable to the members of its Supervisory Board and Management Board. The Remuneration Policy is drafted by the Bank’s Management Board, reviewed by the Nomination and Remuneration Committee and the Risk Committee, and subsequently approved by the Supervisory Board before being adopted by a resolution of the General Meeting.
The Nomination and Remuneration Committee is responsible for reviewing and monitoring the Remuneration Policy while supporting other Bank bodies in shaping and implementing it. Meanwhile, the Risk Committee assesses whether the incentive system described in the Remuneration Policy, as well as the Bank’s overall remuneration practices, adequately consider risk, capital, and liquidity management, as well as the likelihood and time horizon of generating profits. The General Meeting adopts a resolution on the Remuneration Policy at least every four years, with any significant amendments requiring a new resolution.
The Remuneration Policy aims to:
● Promote sound and effective risk management;
● Discourage excessive risk-taking beyond the risk appetite approved by the Supervisory Board;
● Support the Bank’s management strategy and risk management strategy;
● Address and mitigate conflicts of interest in the Bank’s operations;
● Ensure that remuneration and related employment conditions, including compensation criteria and payout conditions, are gender-neutral, i.e., not differentiated based on gender.
The Remuneration Policy specifies that defined criteria (indicators) should align with the Bank’s long-term strategy, considering social interests, environmental commitments, and measures aimed at preventing and mitigating the negative social impacts of the Bank’s operations. It also incorporates sustainability-related risks into the investment decision-making process. As part of the Variable Remuneration System for Management Board Members, a management target has been established to enhance the Bank’s transformation towards sustainable social development, ensuring proper integration of environmental, social, and corporate governance (ESG) factors. The individual variable remuneration awarded annually depends, among other factors, on the assessment of a Management Board Member’s performance in relation to: Employee engagement indicators, volunteering initiatives, financing sustainable projects, advancements in digitalisation and mobile banking. In 2024, these objectives were not linked to specifically defined material impacts, risks, and opportunities. Furthermore, climate-related aspects, including greenhouse gas reduction targets, were not incorporated into the variable remuneration framework.
Remuneration Principles
Supervisory Board members are entitled to a fixed monthly remuneration and do not receive additional variable remuneration. The total remuneration of a Management Board Member consists of a fixed part constituting the basic monthly remuneration and a variable part, representing supplementary remuneration for the fiscal year. The variable remuneration for a Management Board member is contingent on achieving predefined management targets (such as increasing the Bank’s value and improving financial and economic indicators). It cannot exceed 100% of the fixed remuneration received by the Management Board member in the previous fiscal year for which the variable remuneration is being calculated.
13.1.2.4 Due Diligence Statement [GOV-4]
Table 1: Due Diligence Elements
KEY ELEMENTS OF THE DUE DILIGENCE PROCESS
REFERENCES IN THE SUSTAINABILITY STATEMENT
a) Integration of due diligence into governance, strategy, and business model
GOV-2 (pg. 128), GOV-3 (pg. 131), SBM-3 (pg. 136)
b) Engagement with stakeholders affected by the entity at all key stages of the due diligence process
GOV-2 (pg. 128), SBM-2 (pg. 134), IRO-1 (pg. 147), MDR -P (pg. 158, 275 259), S1-2 (pg. 266), S4-2 (pg. 280), G1 -1 (pg. 287), G1-3 (pg. 292)
c) Identification and assessment of adverse impacts
IRO-1 (pg. 147), SBM-3 (pg. 136 )
d) Actions taken to mitigate identified adverse impacts
MDR – A (pg.157, 284), S1-3 (pg. 267), S4-3 (pg. 283), G1-1 (pg.287)
e) Monitoring the effectiveness of these efforts and reporting relevant information
MDR-T (pg. 164, 285), MDR-M (pg. 272, 273, 274), S1-17 (pg. 274), S4-4 (pg. 284), G1-3 (pg. 292)
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13.1.2.5 Risk Management and Internal Controls in Sustainability Reporting [GOV-5]
As part of our sustainability reporting management, we have established internal assessment and control mechanisms designed to ensure high quality and compliance of reporting processes with applicable standards and best market practices. Sustainability reports are submitted for approval by the Bank’s Management Board and approved by the Bank’s Supervisory Board.
Additionally, to ensure adequate oversight, the internal audit function conducts an annual in-depth review of the reporting process, covering data verification, compliance with adopted guidelines, and the effectiveness of implemented procedures.
13.1.3 Strategy
13.1.3.1 Strategy, Business Model, and Value Chain [SBM-1]
At Bank Pekao, we conduct operations in both Polish zloty and foreign currencies, actively participating in domestic and international financial markets. We offer a comprehensive range of banking services for both individual and institutional customers. Our operations span corporate banking, private banking, asset management, and brokerage services. This diverse business profile is underpinned by a strong capital and liquidity position, while maintaining the highest risk management standards.
T hrough a broad product offering, innovative solutions, and a customer-centric approach, we provide comprehensive financial services. Our integrated service model ensures that we deliver top-tier services to our customers, enabling optimal adaptation to evolving needs. We systematically strengthen the Bank’s market position across strategic business areas. A detailed catalogue of activities conducted in both domestic and international markets is outlined in Paragraph 6 of the Statute of Bank Pekao.
In 2024, the timeline of the current strategy for Bank Pekao concluded, and we are currently developing a new business strategy to define the Bank’s key development directions for the coming years. Over the past year, we have continued to implement the existing business strategy Responsible Bank. Modern Banking for 2021-2024, delivering on plans and achieving a set of strategic objectives built upon four pillars: Customer, Growth, Efficiency, and Responsibility
Our approach to sustainability is reflected in the ESG Strategy: Responsible Bank Supporting Sustainable Development (hereinafter: “ESG Strategy”), which was adopted by the Management Board and reviewed by the Supervisory Board on 25 June 2021. This document aligns with the Bank Pekao Business Strategy 2021-2024 and serves as an extension of its fourth pillar: Responsibility.
Within the ESG Strategy 2021-2024, we have defined the Bank’s sustainability objectives and ambitions in relation to environmental, social, and corporate governance (ESG) issues, structured across three pillars:
● First Pillar: “Environment” – focuses on increasing financing for sustainable projects, supporting the energy transition, and shifting towards a low-carbon economy, with the goal of achieving our own carbon neutrality by 2030 . Additionally, we strive to actively participate in governmental and EU recovery and climate transition programmes.
● Second Pillar: “Social Responsibility” – emphasises strengthening actions for the sustainable development of society, the economy, and general welfare. We engage in various social initiatives aimed at providing assistance, promoting equal opportunities, and preventing exclusion, including awareness campaigns, educational initiatives, and collaboration with social organisations. We also support environmental awareness through partnerships and digital tools for our customers. As a Bank, we participate in programmes supporting the growth and innovation of Polish enterprises, collaborating with technology firms and developing electronic and mobile payment channels.
● Third Pillar: “Corporate Governance” – concerns ethical business practices incorporating ESG considerations. A key strategic direction is to promote development, diversity, and equality to ensure an inclusive organisation. We also prioritise transparency in policy-making, internal regulations, and high corporate governance standards. Our aim is to make the Bank an attractive workplace, which we support through training programmes, development initiatives, open communication, and ongoing dialogue.
Since the ESG Strategy was implemented in 2021, its pillars are not directly linked to the identified impacts, risks, and opportunities within the double materiality analysis.
Business Model
The Bank’s business model is structured around customer segmentation, encompassing the following areas:
● Retail and Private Banking – serves individual customers, including high-net-worth individuals in private banking, as well as micro-enterprises. Private banking customers receive investment advisory services through private banking centres and remote channels, while all individual customers and micro-enterprises are supported via branch networks and partner outlets, supplemented by remote service channels, including digital platforms.
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● Corporate Banking – provides financial services to small and medium-sized enterprises (SMEs), served by relationship managers with the support of product specialists. Services are delivered through Business Customer Centres, Corporate Centres, and universal retail branches. SME customers benefit from tailored products and services adapted from corporate banking solutions.
● Corporate and Investment Banking – offers financial services to large corporate customers, public sector entities, financial institutions, and commercial real estate financing customers. Corporate and investment banking customers are served by relationship managers supported by product specialists.
Value Chain
Bank Pekao’s operations fall within a single sector: Banking, as part of the broader financial institutions macro-sector. Based on this classification, we have conducted a value chain mapping analysis, considering the following elements:
● Value chain element
● Type of value chain element
● Implementing element
● Identification of three key entities or categories for each element
● Geographical location of key entities
● Identification of ESG topics relevant to each value chain element.
Subsequently, based on expert analysis, we developed the Group’s value chain, taking into account the complexity of internal processes, regulatory and technological requirements, the diversity of services, and customer segments.
Figure 1 Pekao S.A. Capital Group’s Value Chain.
According to the obtained results, our value chain consists of:
● UPSTREAM of the value chain, which includes key elements of financial infrastructure, such as:
- payment systems, clearing houses, and deposit systems;
- cooperation with international payment card networks (Visa, Mastercard), technology and infrastructure providers, utility service providers, as well as telecommunications companies.
Within Upstream, we ensure operational continuity, reliability, and availability of provided services, as well as modern, user- friendly solutions.
● ORGANISATION (ENTITY’S OPERATIONS IN THE SECTOR) constitutes the banking service system, which includes:
- retail banking;
- business banking;
- corporate banking;
- capital markets; and
- investment banking.
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Our activities at this level are based on strong foundations, such as risk management, finance, human resources, and strategy. Within ORGANISATION, we strive to ensure continuous development of technology and operations, as well as employee competencies and the building of organisational culture.
● DOWNSTREAM of the value chain is focused on serving various customer groups:
- Individual customers benefit from personal banking services, loans, and savings accounts;
- Public sector customers, including governments and local authorities, receive support in public finance management and bond issuance;
- Corporate customers and businesses have access to commercial loans, treasury services, and transaction handling, among others.
DOWNSTREAM also includes financial counterparties, such as other banks and supranational institutions. Activities within this segment are supported by advanced digital platforms, a professional distribution network, and marketing channels.
13.1.3.2 Stakeholder Interests and Opinions [SBM-2]
We place great importance on managing relationships with stakeholders, taking their needs into account, and ensuring equal access to information. The manner in which we conduct communication with the external environment is governed, among others, by the Bank Pekao Information Policy Principles regarding interactions with investors, securities market analysts, media, and customers , available on our website ( Bank’s Information Policy Principles ).
The key stakeholder groups of the Group were identified during a materiality assessment conducted in 2024. Based on the results of the sectoral classification, a tool for mapping the value chain of Pekao Group was developed, covering activities in the credit institutions sector. As a result, we defined a list of stakeholders, which was subsequently assessed within the Group by eighteen business units as part of the Pekao S.A. Group Stakeholder Map development. The collected data was integrated and analysed to determine the key stakeholder groups. The visualised results in the form of the Stakeholder Map are presented below.
Figure 1: Pekao S.A. Capital Group Stakeholder Map
In line with the guidelines of the Corporate Sustainability Reporting Directive (CSRD), a double materiality analysis was conducted to gain insight from the Pekao Group stakeholders on how they perceive the Group’s impact on various ESRS sub- topics within ESG. The dialogue was carried out through a survey, which also allowed participants to raise additional concerns and topics in open-ended questions. The survey included a total of 42 questions: general (1), environmental (18), social (14), and governance-related (5), as well as an open-ended question. Respondents were categorised into two groups: Internal Stakeholders, including Employees and Subsidiaries (78%), and External Stakeholders (22%). The survey did not include non- employee participants, considered as the Bank’s own human resources. Participants were asked to identify and assess the impacts related to ESG areas and determine whether they were positive or negative. On average, stakeholders identified the strongest positive impact in the social area and the strongest negative impact in the area of corporate governance. The results of stakeholder opinions were presented in an aggregated form as part of the summary of the double materiality analysis to the Steering Committee and the ESG Council.
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In relations with key stakeholders of the Group (as mentioned above), the Bank consistently maintains open communication and takes actions aimed at achieving a positive impact while striving to minimize any negative effects the Group may have on these entities.
Table 2: Relation with key stakeholders
STAKEHOLDER GROUPS
COMMUNICATION TOOL
TOPICS ADDRESSED
BANK'S ACTIONS
Shareholders, including the strategic owner (1)
General Shareholders' Meeting
Conferences and meetings
Stock exchange and press releases
Financial reports, data summaries, and performance presentations
Bank's website and online communication channels
Meetings with rating agencies
Ongoing cooperation with the Investor Relations Department (institutional and individual investors, financial analysts, and capital market organizations)
ESG online report
Branches, online and mobile banking
● Strategy implementation, value creation, organizational changes
● Macroeconomic and market forecasts
● Profit distribution to shareholders
● Operational transparency, easy and quick access to Bank information, adherence to external regulations and market standards.
Customers and recipients (4)
Bank's website and online communication channels
Online banking platform and mobile banking
Customer hotline
Complaints
Satisfaction surveys for products and services and service quality
Advertising campaigns and marketing activities
Product offers, Mailings
Participation in fairs
Internal communication
● High-quality products and services offered, consumer fair practices
● Security of entrusted funds
● Ease of communication with the Bank
● Offering competitive, high- quality products and services tailored to customer needs
● Adherence to procedures ensuring fair and secure management of customer funds
● Providing multiple access channels; creating transparent offer and contract conditions, collecting customer expectations and feedback
● Co-creating and adhering to good advertising practices and financial services standards.
Employees and employee organizations and trade unions (3)
Intranet, chats, discussion forums
Meetings involving the Management Board
Employee volunteerism
Webinars
Employee performance evaluations
Internal publications
Topic surveys, evaluation surveys, employee opinion surveys
Whistleblowing reporting system
Meetings with employer representatives, negotiations, consultations
Supplier meetings, negotiations
● Job stability and career development opportunities
● Attractive remuneration system
● Bank's strategy and key goals
● Transparent organizational structure
● Work-life balance
● Collective Labor Agreement provisions
● Employee matters
● Detailed information about social partners is available on individual intranet pages.
● Trade Unions
● Employee Council
● Social Labor Inspection
● Listening to employees' feedback (chats, satisfaction surveys)
● Ensuring employee development (promotions, training)
● Clear, measurable goals to be achieved and monitored
● Adequate salary and benefits policy
● Meetings with employees and ongoing communication
● Providing a friendly workplace: including the introduction of remote work opportunities, as well as health and preventive activities
● Dialogue with all trade unions operating in the Bank, based on respect for the legitimate interests of the parties.
Regulatory Environment and Supervisory Organizations (10)
Email
Reports, statements
Business and trading platform
● Adherence to requirements and regulations
● Supporting the creation of new market rules, including best practices.
● Adherence to regulations, ongoing cooperation with regulators
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STAKEHOLDER GROUPS
COMMUNICATION TOOL
TOPICS ADDRESSED
BANK'S ACTIONS
Central banks, financial institutions (9)
Email
Reports, statements
Conferences and meetings
● ESG projects
● Dialogue and cooperation
● Experience exchange
● Shaping good market practices
Pekao Group Entities (2)
Phone, email
Meetings
● Implementation of policies and procedures at the Group level
● Cooperation in experience exchange and implementing good practices
Suppliers and business partners (5)
Procurement platform, phone, email
Ongoing cooperation and contract fulfillment
Charitable and sponsorship activities, climate-related actions
● Transparent supplier selection and cooperation principles
● Adherence to transparent supplier selection procedures;
● Timely fulfillment of contract provisions, promoting good purchasing practices
Industry organizations and competitors (6)
Communication on the Bank's website and online communication channels
Fairs, conferences, industry meetings
● Non-financial reports
● Results, strategy and goals implementation
● Ongoing initiatives and projects
● Monitoring market changes to develop best practices
● Trend analysis
Natural Environment (16)
Employee volunteerism
Press conferences
● Social and environmental projects
● Reducing negative environmental impact, environmental education for customers and employees
● Encouraging employees to participate in environmental initiatives
● Reducing negative environmental impact
New Business and ESG Strategy
Changes in the regulatory environment regarding sustainability, implementation of supervisory institutions’ recommendations, observation of market practices, and growing stakeholder expectations (including investors and customers) require us to systematically increase our engagement in ESG matters. This includes adjusting internal procedures and incorporating ESG considerations into product, credit, and investment processes. Integrating these topics as an essential part of strategic actions and objectives for the coming years will be a crucial component of the new Business and ESG Strategy of Bank Pekao, which will be published in 2025. The new strategy will reflect the Bank’s development aspirations, considering the current position based on the Baseline Analysis, macroeconomic scenario, and banking sector scenario. Various Bank units, including the Management Board, are involved in the work. The strategy formulation stages include the assessment of the proposed assumptions by the Bank’s Management Board and the Supervisory Board, followed by approval from these bodies. Our goal is to prepare an aspirational strategy that will foster excellent relationships with all stakeholders.
13.1.3.3 Material Impacts, Risks, and Opportunities and Their Interrelation with Strategy and Business Model [SBM-3]
As a result of the double materiality analysis, we identified 26 topics aligned with ESRS and four additional topics (not covered under ESRS) that Pekao Group significantly impacts (impact materiality) or that significantly affect the Group’s operations (financial materiality). More details about the process can be found in subsection 13.1.3.4.1.
In assessing impacts, we considered:
● type of impact (positive/negative);
● place of impact occurrence (value chain – mainly through the credit portfolio/organisation);
● time of impact occurrence – actual (currently occurring) / potential (possible future occurrence);
● three time horizons covering periods:
- short-term (1 year),
- medium-term (1 to 5 years),
- long-term (over 5 years).
We conducted the financial materiality analysis regarding opportunities and risks related to the business model, value chain, strategy, and decision-making process in:
● three time horizons covering periods:
- short-term (1 year) ,
- medium-term (1 to 5 years),
- long-term (over 5 years);
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● divided by place of impact occurrence (value chain – mainly through the credit portfolio/organisation).
The analysis also examined potential financial consequences related to the materialisation of risks concerning the Group’s financial position. In the current reporting year, we identified an increased risk associated with the imposition of fines by the UOKiK resulting from practices employed by Bank Pekao S.A. related to enhanced consumer protection. In the medium-term horizon, we do not foresee any indications of events that could lead to significant financial consequences for the Bank or its ability to generate cash flows. We identified one potential risk related to tax transparency, namely increased credit risk arising from financing companies that do not adhere to international transparency standards.
Based on the results obtained, we do not identify any material risks to the Bank's business model, strategy or value chain. We also do not expect the related financial effects in the current reporting year or the materialization of risks that could result in a material adjustment of the carrying amounts of assets and liabilities in the next year. With regard to medium and long periods, we also do not see any indications indicating the possibility of events materializing. As part of conducted analysis, we did not assess the resilience of the strategy and business model in the context of climate change. The analysis of climate risks conducted does not indicate threats to resilience.
A detailed list of impacts, risks, and opportunities is presented in the table below.
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Table 3: Material ESG Issues
IMPACT MATERIALITY
FINANCIAL MATERIALITY
ESG TOPICS
IDENTIFIED ISSUES
IN MATERIALITY ASSESSMENT
TYPE
PLACE
CATEGORY
OUTLOOK
TYPE
PLACE
OUTLOOK
Adaptation to Climate Change
Positive Impact: We support climate adaptation initiatives primarily through financing infrastructure projects designed to withstand extreme weather events and other effects of climate change.
DOWNSTREAM
Actual and Potential
Medium-term
Opportunity: Increased revenues related to offering financial products or financing projects aimed at climate adaptation.
DOWNSTREAM
Long-term
Positive Impact : We engage in financing projects that directly contribute to mitigating climate change (e.g., investments in renewable energy sources).
DOWNSTREAM
Actual
Opportunity: Increased revenues
associated with offering financial products or financing projects aimed at mitigating climate change, such as investments in renewable energy and energy efficiency.
DOWNSTREAM
Medium-term
Long-term
Climate Change Mitigation
Negative Impact: In relation to our credit portfolio. We maintain exposure to high- emission sectors, including real estate and energy production.
ORGANISATION
DOWNSTREAM
Actual
E1: CLIMATE CHANGE
Sustainable finance
(additional issue)
Positive Impact: We engage in numerous projects aimed at improving corporate customers’ energy efficiency, implementing ecological initiatives, financing renewable energy sources, and supporting social projects. We have published a Sustainable Finance Framework defining the eligibility of investments financed from proceeds of EMTN bonds issued by the Bank.
DOWNSTREAM
Actual
S1: OWN WORKFORCE
Secure Employment Conditions
Positive Impact : We have a positive impact on employment security. The majority of our employees are employed under employment
ORGANISATION
Actual
No material opportunities
or risks identified.
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IMPACT MATERIALITY
FINANCIAL MATERIALITY
ESG TOPICS
IDENTIFIED ISSUES
IN MATERIALITY ASSESSMENT
TYPE
PLACE
CATEGORY
OUTLOOK
TYPE
PLACE
OUTLOOK
contracts. However, in response to market needs and evolving expectations regarding employment flexibility, we also offer various types of contracts, including fixed-term and permanent employment contracts, civil law contracts (contract for specific work and contract of mandate), as well as consultant agreements under body leasing arrangements.
Negative Impact: The automation and implementation AI-based solutions may present a risk of job stability.
ORGANISATION
Potential
Medium-term
Employee Working Hours
Positive Impact: We regulate employees’ working hours through appropriate systems; we apply work time recording principles and monthly work schedules within settlement periods. We have signed an “Agreement on Remote Work Principles” with Trade Unions.
ORGANISATION
Actual
No material opportunities
or risks identified.
Fair Employee Remuneration
Positive Impact: We ensure fair remuneration for employees, considering both legal requirements and market conditions. We implement incentive systems that support the Bank’s strategy execution.
ORGANISATION
Actual
No material opportunities or risks identified.
Social Dialogue with Employees
Positive Impact: We engage in dialogue with employees through internal communication channels such as intranet, chats, and regular meetings with the Management Board. We maintain dialogue with all
ORGANISATION
Actual
No material opportunities or risks identified.
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IMPACT MATERIALITY
FINANCIAL MATERIALITY
ESG TOPICS
IDENTIFIED ISSUES
IN MATERIALITY ASSESSMENT
TYPE
PLACE
CATEGORY
OUTLOOK
TYPE
PLACE
OUTLOOK
trade union organisations operating within the Bank.
Freedom of Association, Works Councils, and Employees’ Right to Information, Consultation, and Participation
Positive Impact: Trade union organisations operate within the Bank. We maintain dialogue with all trade union organisations and provide them with dedicated intranet pages for communication with employees.
ORGANISATION
Actual
No material opportunities or risks identified.
Collective Bargaining, Including Percentage of Employees Covered by Collective Agreements
Positive Impact: Over 70% of employees are covered by a collective agreement.
ORGANISATION
Actual
No material opportunities
or risks identified.
Work-Life Balance
Positive Impact: We offer flexible working models and participate in health campaigns related to mental health and physical activity.
ORGANISATION
Actual
No material opportunities
or risks identified.
Occupational Health and Safety
Positive Impact: We undertake health and safety initiatives, including training, employee health surveys, and information campaigns.
ORGANISATION
Actual
No material opportunities
or risks identified.
Positive Impact : We have implemented an equality and diversity policy aimed at ensuring gender equality and preventing workplace discrimination. We consider gender balance in management and succession planning.
ORGANISATION
Potential
Medium-term
No material opportunities
or risks identified.
Gender Equality and Equal Pay for Work of Equal Value
Negative Impact: There is a gender pay gap in the Bank. As part of the ESG Strategy 2021-2024, the Bank is taking measures to reduce this disparity.
ORGANISATION
Actual
Employee Training and Skills Development
Positive Impact: We offer our employees access to a variety of training formats, including webinars, mentoring,
ORGANISATION
Actual
No material opportunities
or risks identified.
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IMPACT MATERIALITY
FINANCIAL MATERIALITY
ESG TOPICS
IDENTIFIED ISSUES
IN MATERIALITY ASSESSMENT
TYPE
PLACE
CATEGORY
OUTLOOK
TYPE
PLACE
OUTLOOK
coaching, and e-learning courses.
Measures to Prevent Workplace Violence and Harassment
Positive Impact: We have implemented the “ Procedure for Counteracting Mobbing, Discrimination, Harassment, or Other Undesirable Behaviour at Bank Polska Kasa Opieki Spółka Akcyjna” , which serves as a mechanism for handling employee complaints, including issues related to workplace violence and harassment. We provide communication channels that allow employees to report unethical practices, such as harassment and violence.
ORGANISATION
Actual
No material opportunities
or risks identified.
Workplace Diversity
Positive Impact: Our recruitment processes are based solely on assessing the experience and competencies of candidates and their alignment with the job requirements.
We implement initiatives that support diversity for all employees and provide managerial training on diversity management.
ORGANISATION
Actual
No material opportunities
or risks identified.
Employee Privacy
Positive Impact: We adhere to personal data protection principles through technical and organisational measures that ensure secure data processing. We take appropriate actions to secure sensitive information, ensuring full compliance with GDPR. We invest in data protection technologies, as well as the development and implementation of procedures
ORGANISATION
Actual
No material opportunities
or risks identified.
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IMPACT MATERIALITY
FINANCIAL MATERIALITY
ESG TOPICS
IDENTIFIED ISSUES
IN MATERIALITY ASSESSMENT
TYPE
PLACE
CATEGORY
OUTLOOK
TYPE
PLACE
OUTLOOK
and training programs, aimed not only at securing employee privacy but also at building trust and promoting a positive organizational culture.
Consumers and End Users Privacy
Positive Impact : We are implementing measures aimed at safeguarding consumers through the introduction of technological, systemic and organizational solutions. These include, in particular, educational campaigns that raise awareness about potential threats, frauds prevention methods, and ways to mitigate risks, as well as new transitions monitoring functionalities and updates to banking systems.
ORGANISATION
Actual
No material opportunities
or risks identified.
Access to High-Quality Information
Positive Impact: We maintain active and effective communication with all stakeholders through various channels. We prioritise transparency in sales processes and the provision of accurate product information.
ORGANISATION
Actual
No material opportunities
or risks identified.
Positive Impact: We implement numerous measures to protect customer data and financial assets.
ORGANISATION
Actual
No material opportunities
or risks identified.
S4: CONSUMERS AND END USERS
Personal Safety of Consumers and/or End Users
Negative Impact: Due to the nature of our activities, we influence consumers’ financial security. Failure to comply with internal procedures may expose customers to financial loss and/or deterioration of their financial situation and that of their families.
DOWNSTREAM
Potential
Medium-term
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IMPACT MATERIALITY
FINANCIAL MATERIALITY
ESG TOPICS
IDENTIFIED ISSUES
IN MATERIALITY ASSESSMENT
TYPE
PLACE
CATEGORY
OUTLOOK
TYPE
PLACE
OUTLOOK
Non-discrimination
Positive Impact: The Group takes the obligation of non- discrimination towards consumers very seriously and assesses its impact in this regard as unequivocally positive. This is reflected in a survey conducted among key external stakeholders, in which as many as 30% of respondents indicated a very positive impact (4 or 5 on a 5- point scale), while only 6% of respondents reported a negative impact on a similar scale. The Pekao24 online service provides the option of consulting with an advisor in sign language for the hearing impaired.
ORGANISATION
Actual
No material opportunities
or risks identified.
Access to Products and Services
Positive Impact: We offer a wide range of financial services, including modern transaction banking products, settlement and treasury products, custodian services, and depositary banking. We support Polish micro, small, and medium-sized enterprises. Additionally, we provide an application that facilitates the acquisition and parametrisation of products for new customers.
ORGANISATION
Actual
Risk : The heightened risk associated with potential fines by UOKIK as a result of practices employed by Bank Pekao, including issues related to sanctions on free credit and unauthorized transactions, has been identified. Due to the increasing activity of clients and consumer protection efforts by the regulator, which has initiated proceedings against the bank, there is a probability of risk materializing in 2025.
DOWNSTREAM
Short-term
Responsible Marketing Practices
Positive Impact: Every employee of the Bank serves as an ambassador for the products and services offered by Pekao Group. Our marketing and advertising activities are conducted in accordance with the New
ORGANISATION
Actual
No material opportunities
or risks identified.
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IMPACT MATERIALITY
FINANCIAL MATERIALITY
ESG TOPICS
IDENTIFIED ISSUES
IN MATERIALITY ASSESSMENT
TYPE
PLACE
CATEGORY
OUTLOOK
TYPE
PLACE
OUTLOOK
Product Introduction Policy and the Marketing Communication Creation Principles, in line with the Corporate Governance Principles for Supervised Institutions issued by the Polish Financial Supervision Authority (KNF) .
Financial Education
(additional issue)
Positive Impact: We conduct educational programmes, workshops, and information campaigns for a broad audience on the use of banking products, investment strategies, household budget management, and saving.
ORGANISATION
Actual
No material opportunities
or risks identified.
Corporate Culture
Positive Impact: We foster an organisational culture based on mutual respect, openness to dialogue, and collective pursuit of organisational goals. The fundamental values and principles underlying our corporate culture are outlined in our internal documents. We conduct educational and awareness initiatives for employees and monitor their implementation through employee opinion surveys and engagement tracking.
ORGANISATION
Actual
No material opportunities
or risks identified.
G1: BUSINESS CONDUCT
Whistleblower Protection
Positive Impact: We have implemented the Bank Pekao S.A. Whistleblowing Procedure, which sets out the principles and procedures for reporting irregularities and ensures protection for individuals reporting potential misconduct.
ORGANISATION
Actual
No material opportunities
or risks identified.
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IMPACT MATERIALITY
FINANCIAL MATERIALITY
ESG TOPICS
IDENTIFIED ISSUES
IN MATERIALITY ASSESSMENT
TYPE
PLACE
CATEGORY
OUTLOOK
TYPE
PLACE
OUTLOOK
Supplier Relationship Management, Including Payment Practices
Positive Impact: We enforce the Bank Pekao S.A. Supplier Code of Conduct, outlining expectations regarding environmental protection, social factors, and corporate governance standards. The Code is used in procurement processes, and each supplier is required to declare compliance and the completion of the ESG Form regarding the verification of its activities in terms of considering ESG factors. We verify outsourcing agreements in accordance with banking law and EBA guidelines.
ORGANISATION
Actual
No material opportunities
or risks identified.
Corruption Prevention and Detection, Including Training
Positive Impact: We maintain and regularly communicate the Anti- Corruption Policy. Every employee is required to complete anti-corruption training and pass an assessment test.
ORGANISATION
Actual
No material opportunities
or risks identified.
Corruption and Bribery Incidents
Positive Impact: We monitor compliance with internal anti- corruption regulations, implement preventive measures, and have established procedures for handling such incidents.
ORGANISATION
Actual
No material opportunities
or risks identified.
Tax Transparency
(additional issue)
Positive Impact: We collaborate with tax authorities in exchanging information and complying with international tax information exchange regulations (CRS, FATCA).
ORGANISATION
Actual
Risk:
Increased credit risk due to financing enterprises that do not adhere to international tax transparency standards.
DOWNSTREAM
Long-term
Cybersecurity and Data Protection
(additional issue)
Positive Impact: The bank, ensuring a high level of data and system protection, contributes to the stability of
ORGANISATION
Actual
No material opportunities
or risks identified.
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IMPACT MATERIALITY
FINANCIAL MATERIALITY
ESG TOPICS
IDENTIFIED ISSUES
IN MATERIALITY ASSESSMENT
TYPE
PLACE
CATEGORY
OUTLOOK
TYPE
PLACE
OUTLOOK
the banking sector and the privacy protection of its clients. Investing in modern technologies, conducting audits, and applying best market practices not only minimizes threats to the bank and its stakeholders but also supports trust in the financial sector as a whole. The bank conducts continuous cybersecurity risk analysis, and the risks identified during this process are appropriately mitigated.
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13.1.3.4 Management of Impacts, Risks, and Opportunities
13.1.3.4.1 Description of the Process for Identifying and Assessing Material Impacts, Risks, and Opportunities [IRO-1]
As part of the preparation for this Report, we conducted for the first time a double materiality assessment to identify key stakeholder groups relevant to Bank Pekao S.A. and the entire Capital Group, as well as material impacts, risks, and opportunities related to sustainability issues. The results of the assessment form the basis for actions taken and the definition of Bank Pekao S.A.’s strategic goals for the future.
As part of the preparation for this Report, we conducted for the first time a double materiality assessment to identify key stakeholder groups relevant to Bank Pekao S.A. and the entire Capital Group, as well as material impacts, risks, and opportunities related to sustainability issues. The results of the assessment form the basis for actions taken and the definition of Bank Pekao S.A.’s strategic goals for the future.
The process was carried out by a project team representing key units of the Bank, under the supervision of the Steering Committee, which included Directors of the Bank’s Departments and representatives of the Management Board. The Steering Committee monitored the progress of work and its compliance with the adopted methodology during regular meetings. The results were discussed and approved by the Steering Committee.
The assessment was conducted in accordance with the requirements of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), incorporating two perspectives: impact materiality and financial materiality – examining both the impact of the Capital Group on sustainability issues and how these issues may affect our financial performance in the future.
To ensure consistency with the Bank’s risk management approach and enable full integration of ESG risks and opportunities into the existing risk management framework in future years, the risk management unit actively participated in the process. This unit was involved in the identification and assessment of risks and opportunities, including the determination of materiality thresholds for ESG-related risks and opportunities.
The assessment was structured into four phases:
• Identification of key business sectors and value chain mapping;
• Analysis of existing data, including market context (benchmarking) and stakeholder dialogue for impact materiality assessment;
• Financial materiality assessment of risks and opportunities;
• Matrix analysis of results and the development of a list of ESG topics material to Pekao S.A. Group.
The double materiality assessment was conducted in 2024 using various research tools and involving:
• Experts from Bank Pekao S.A., responsible for assessing the impact and financial materiality of the Organisation;
• Key internal and external stakeholders who participated in a survey on sustainability issues;
• Selected members of Bank Pekao’s management staff, who were interviewed in a structured format;
• Comparative analysis of reference entities, ESG ratings, and industry reports.
The methodology for sector identification was based on the most recent Polish version of ESRS 1 and 2 (published on 19 April 2024) and the publicly available EFRAG sector classification. The threshold for identifying sectors was set at >10% of revenue in the last fiscal year. The sectoral survey was designed based on EFRAG recommendations (Exposure Draft European Sustainability Reporting Standard SEC1 – Sector classification and General approach to sector-specific ESRS), aligned with Taxonomy regulations.
The key stakeholders of Bank Pekao S.A. were identified through a questionnaire-based assessment of 16 stakeholder groups, where two parameters were evaluated:
• The impact of Pekao S.A. Group on the given stakeholder group;
• The stakeholder group’s interest in the Pekao S.A. Group.
As a result of the analysis and stakeholder mapping, we identified nine key stakeholder groups.
The impact materiality assessment was conducted in stages, beginning with an analysis of reference entities, ESG ratings, and industry reports, as well as interviews with key internal stakeholders. The assessment methodology involved a comprehensive examination of the Group’s impact on its environment, including:
• Timing of impact occurrence;
• Scale of the impact;
• Probability of the impact;
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• Extent of the impact;
• Reversibility of the impact.
To ensure a neutral approach, a variety of data sources were utilised, including:
• Interviews with internal stakeholders;
• Benchmarking analysis, including:
- Benchmarking of reference entities;
- Benchmarking of industry reports;
- Benchmarking of ESG ratings;
• An anonymous survey among stakeholders (internal and external).
The final impact assessment was conducted using an MS Excel-based tool, in accordance with ESRS requirements. The results from the above analyses provided an initial indication of potentially material topics. All ESRS thematic areas were assessed, with the assumption that for those topics confirmed as material in the preliminary analyses, the Group’s impact on stakeholders could be deemed non-material. For actual negative impacts, materiality was determined based on severity (scale, extent, duration), while for potential negative impacts, severity and probability were considered. Positive impacts were assessed based on scale and extent (for actual impacts) and scale, extent, and probability (for potential impacts). Each category of impact assessment was assigned a 1 to 5 scale, where 1 represents the lowest value and 5 the highest. A topic was deemed material if it scored more than half of the total possible points and was validated in preliminary analyses. Topics that met the minimum required score but were not identified as material in the preliminary analysis were reassessed by the project team.
The financial materiality assessment was based on the previous phases, leading to the identification of 151 financial risks and opportunities related to all ESRS topics. Each was assessed in terms of probability and financial impact across three time horizons: current reporting year, up to five years, and beyond five years. Following the assessment, we identified a list of the most material risks and opportunities, which, after being mapped to the corresponding ESRS topics, formed a list of potentially material financial topics. A topic was deemed potentially material if an associated risk or opportunity was material in at least one time horizon. The final list was subject to review by Bank experts. Topics to which risks/opportunities were assigned with a total score greater than 8 on a five-point scale for probability and financial impact (e.g., probability 5, financial impact 3) in any of the analysed time perspectives were included in the list of financially material topics. Based on the conducted analyses, we identified four financially material topics in line with ESRS, along with one additional topic.
Additionally, we thoroughly examined climate-related topics, recognising E1 (Climate Change) as a material topic we have examined physical risks and transition risks:
• Physical risks: with respect to physical risks, the identification and assessment of risks carried out as part of the financial materiality analysis was based, in accordance with the requirements of Article 20.b) i., AR 11, on a climate scenario assuming high emissions (SSP5-8.5). Using the transitional provisions (Table in Appendix C), the assessment of climate- related financial impacts (requirement E1-9) has been based on qualitative methods in order to enable a consistent methodology for all risks and opportunities (with the assessment of most of the physical risks indicated for assessment in AR 11 already based on quantitative methods, and the results of the analyses are published in the following reports: " Information on the capital adequacy of the Bank Pekao S.A. Group" – it includes, m.in, the size of exposure and impairment by type of threat and sector). As a result of the qualitative approach to the requirement E1-9, the conclusions for the resistance analysis are also qualitative (to be supplemented with reference to AR 7 c).
• Transition risks: the identification and assessment of transition risks takes into account elements that are broadly consistent with the SSP1-1.9 scenario, in line with the Paris Agreement, assuming climate neutrality by 2050 (Article 20 c) and AR 12 c)), such as e.g. continuation of political and legal trends within EU regulations, reputation pressure on the implementation of changes. As in the case of physical risks, the Group is currently conducting quantitative analyses for transition risks, publishing data on e.g. credit quality of exposures by sector, issuance and residual maturity, and risk related to the value of real estate with different levels of energy efficiency in relation to loan collateral. In addition, as the Bank is currently working on a transformation plan, we assume that the risks and opportunities for the Paris-compliant scenario will be deepened for the purposes of this plan (the need to determine, for example, emission reduction targets and methods, which may give rise to additional risks of transition).
Regarding other environmental topics:
• E2 (Pollution) – Assessed the Bank’s own operations and product portfolio. No consultations with affected communities were conducted, as the Pekao Group’s operations and value chain do not impact the local environment;
• E3 (Water and Marine Resources) – Assessed the operational impact on water consumption, particularly in central offices and branches. The Bank’s portfolio, including credit exposures, was also analysed. No material impact was identified; therefore, we did not engage in dialogue with the local community;
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• E4 (Biodiversity and Ecosystems) – Examined the impact on biodiversity and ecosystems within our own locations, from the perspective of the portfolio, and within the higher and lower tiers of the value chain. We identified and assessed the related risks. However, we did not identify or assess transition risks and opportunities, nor physical risks and opportunities related to biodiversity and ecosystems. We did not consider systemic risk or assess ecosystem services. Given the nature of the Bank’s services, we do not affect biodiversity and ecosystems; thus, we did not conduct local consultations.
• E5 (Circular Economy) – Examined the process of identifying material impacts, risks, and opportunities related to resource use and the circular economy within our own operations and portfolio. We did not identify any material impact within the organisation or the value chain, and we did not conduct consultations on this matter.
To summarise, as a result of the study, we identified:
• The inclusion of Pekao S.A. Capital Group within a single sector: Credit Institutions within the Financial Institutions macro- sector;
• 9 key stakeholder groups;
• 26 topics aligned with ESRS, with 26 material sub-topics for Pekao Group, most of which (19) fall under the social pillar, focusing on aspects related to our own workforce (13) and consumers and end users (6). Within the environmental pillar, two topics are material for Pekao Group: climate change adaptation and climate change mitigation. The corporate governance pillar includes five material topics related to organisational culture, whistleblower protection, supplier relationship management, and anti-corruption measures, including corruption and bribery incidents;
• 4 additional topics material to Pekao S.A. Capital Group, beyond the ESRS list.
The results of the double materiality analysis were approved by the ESG Council.
13.1.3.5 Disclosure Requirements under ESRS Covered by the Entity’s Sustainability Statement [IRO-2]
Disclosure Requirements under ESRS Covered by the Entity’s Sustainability Statement.
Table 4: ESRS Compliance Table
DISCLOSURE
LOCATION IN THE REPORT
(SECTION NUMBER)
OMISSIONS AND EXPLANATIONS
BP-1 General basis for preparing sustainability statements
13.1.1
BP-2 Disclosures related to specific circumstances
13.1.1
GOV-1 Roles and responsibilities of administrative, management, and supervisory bodies of the company
13.1.2.1
GOV-2 Informing administrative, management, and supervisory bodies about sustainability issues
13.1.2.2
GOV-3 Integration of sustainability-related results in incentive systems
13.1.2.3
GOV-4 Due diligence statement
13.1.2.4
GOV-5 Risk management and internal controls in sustainability reporting
13.1.2.5
SBM-1 Market position, strategy, business model, and value chain
13.1.3.1
SBM-2 Views, interests, and expectations of stakeholders
13.1.3.2
SBM-3 Interaction of influences, strategy, and business model of the company
13.1.3.3
IRO-1 Description of processes for identifying and assessing material impacts, risks, and opportunities
13.1.3.4.1
ESRS 2
IRO-2 Disclosure requirements under ESRS covered by the entity’s sustainability statement
13.1.3.5
CLIMATE CHANGE
GOV-3 Integration of sustainability-related results in incentive systems
13.1.2.3
SBM-3 Interaction of influences, strategy, and business model of the company
13.1.3.3
IRO-1 Description of processes for identifying and assessing material impacts, risks, and opportunities
13.1.3.4.1
E1-1 Transition plan for climate change mitigation
13.2.1.1
E1-2 Policies related to climate change mitigation and adaptation
13.2.1.2.1
E1-3 Actions and resources related to climate policy
13.2.1.2.2
E1-4 Climate change mitigation and adaptation targets
13.2.1.3.1
E1-5 Energy consumption and energy mix
13.2.1.3.2
E1-6 Gross greenhouse gas emissions for Scopes 1, 2, and 3 and total greenhouse gas emissions
13.2.1.4
E1-7 Greenhouse gas removal and emission reduction projects financed through carbon emission units
13.2.1.5
N/A
ESRS E1
E1-8 Internal carbon pricing
13.2.1.6
N/A
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DISCLOSURE
LOCATION IN THE REPORT
(SECTION NUMBER)
OMISSIONS AND EXPLANATIONS
E1-9 Anticipated financial impacts of material physical risks, transition risks, and potential climate-related opportunities
13.2.1.7
N/A
POLLUTION
IRO-1 Description of processes for identifying and assessing material impacts, risks, and opportunities
13.1.3.4.1
E2-1 Policies related to pollution
N/A
E2-2 Actions and resources related to pollution
N/A
E2-3 Pollution-related targets
N/A
E2-4 Air, water, and soil pollution
N/A
E2-5 Potentially hazardous substances and substances of very high concern
N/A
ESRS E2
E2-6 Anticipated financial impacts of risks and opportunities related to pollution
N/A
WATER AND MARINE RESOURCES
IRO-1 Description of processes for identifying and assessing material impacts, risks, and opportunities related to pollution
13.1.3.4.1
N/A
E3-1 Policies related to water and marine resources
E3-2 Actions and resources related to water and marine resources
N/A
E3-3 Targets related to water and marine resources
N/A
E3-4 Water consumption
N/A
E3-5 Anticipated financial impacts of influences, risks, and opportunities related to water and marine resources
N/A
IRO-1 Description of processes for identifying and assessing material impacts, risks, and opportunities related to water and marine resources
ESRS E3
AR 7 Material impacts, risks, and opportunities and their interconnections with strategy and business model
BIODIVERSITY AND ECOSYSTEMS
IRO-1 Description of processes for identifying and assessing material impacts, risks, dependencies, and opportunities related to biodiversity and ecosystems
13.1.3.4.1
N/A
E4-1 Biodiversity and ecosystem transformation plan and inclusion of biodiversity and ecosystems in strategy and business model
E4-2 Policies related to biodiversity and ecosystems
N/A
E4-3 Actions and resources related to biodiversity and ecosystems
N/A
E4-4 Targets related to biodiversity and ecosystems
N/A
E4-5 Impact metrics related to biodiversity and ecosystem change
N/A
ESRS E4
E4-6 Anticipated financial impacts of risks and opportunities related to biodiversity and ecosystems
N/A
RESOURCE USE AND CIRCULAR ECONOMY
IRO-1 Description of processes for identifying and assessing material impacts, risks, and opportunities related to resource use and circular economy
13.1.3.4.1
N/A
E5-1 Policies related to resource use and circular economy
E5-2 Actions and resources related to resource use and circular economy
N/A
E5-3 Targets related to resource use and circular economy
N/A
E5-4 Resource inflows
N/A
E5-5 Resource outflows
N/A
ESRS E5
E5-6 Anticipated financial impacts of risks and opportunities related to resource use and circular economy
N/A
OWN WORKFORCE
SBM-2 Views, interests, and expectations of stakeholders
13.1.3.2
SBM-3 Interaction of influences, strategy, and business model of the company
13.1.3.3
S1-1 Policies related to own workforce
13.3.1.1.1
S1-2 Procedures for engagement with own employees and employee representatives regarding impacts
13.3.1.1.2
S1-3 Processes for mitigating negative impacts and employee grievance mechanisms
13.3.1.1.3
ESRS S1
S1-4 Actions taken regarding material impacts on own employees and approaches to managing material risks and leveraging material opportunities related to own workforce, as well as the effectiveness of such actions
13.3.1.1.4
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DISCLOSURE
LOCATION IN THE REPORT
(SECTION NUMBER)
OMISSIONS AND EXPLANATIONS
S1-5 Targets related to managing material negative impacts, enhancing positive impacts, and managing material risks and opportunities
13.3.1.2.1
S1-6 Characteristics of the entity’s employees
13.3.1.2.2
S1-7 Characteristics of non-employee workers classified as part of the entity’s own workforce
13.3.1.2.3
S1-8 Scope of collective bargaining and social dialogue
13.3.1.2.4
S1-9 Diversity indicators
13.3.1.2.5
S1-10 Fair remuneration
13.3.1.2.6
S1-11 Social protection
13.3.1.2.7
S1-12 Persons with disabilities
N/A
S1-13 Training and skills development indicators
13.3.1.2.8
S1-14 Occupational health and safety indicators
13.3.1.2.9
S1-15 Work-life balance indicators
13.3.1.2.10
S1-16 Remuneration indicators (gender pay gap and total remuneration)
13.3.1.2.11
S1-17 Incidents, complaints, and material impacts on human rights compliance
13.3.1.2.12
WORKERS IN THE VALUE CHAIN
SBM-2 Views, interests, and expectations of stakeholders
N/A
SBM-3 Interaction of influences, strategy, and business model of the company
N/A
S2-1 Policies related to employees in the value chain
N/A
S2-2 Processes for engagement with employees in the value chain regarding impacts
N/A
S2-3 Processes for mitigating negative impacts and grievance mechanisms for employees in the value chain
N/A
S2-4 Actions taken regarding material impacts on employees in the value chain and approaches to managing material risks and leveraging material opportunities related to employees in the value chain, as well as the effectiveness of such actions
N/A
ESRS S2
S2-5 Targets related to managing material negative impacts, enhancing positive impacts, and managing material risks and opportunities
N/A
AFFECTED COMMUNITIES
SBM-2 Views, interests, and expectations of stakeholders
N/A
SBM-3 Interaction of influences, strategy, and business model of the company
N/A
S3-1 Policies related to affected communities
N/A
S3-2 Processes for engagement with affected communities regarding impacts
N/A
S3-3 Processes for mitigating negative impacts and grievance mechanisms for affected communities
N/A
S3-4 Actions taken regarding material impacts on affected communities and approaches to managing material risks and leveraging material opportunities related to these communities, as well as the effectiveness of such actions
N/A
ESRS S3
S3-5 Targets related to managing material negative impacts, enhancing positive impacts, and managing material risks and opportunities
N/A
CONSUMERS AND END-USERS
SBM-2 Views, interests, and expectations of stakeholders
13.1.3.2
N/A
SBM-3 Interaction of influences, strategy, and business model of the company
13.1.3.3
S4-1 Policies related to consumers and end-users
13.3.2.1.1
S4-2 Processes for engagement with consumers and end-users regarding impacts
13.3.2.1.2
N/A
S4-3 Processes for mitigating negative impacts and grievance mechanisms for consumers and end-users
13.3.2.1.3
N/A
S4-4 Actions taken regarding material impacts on consumers and end- users and approaches to managing material risks and leveraging material opportunities related to consumers and end-users, as well as the effectiveness of such actions
13.3.2.1.4
N/A
ESRS S4
S4-5 Targets related to managing material negative impacts, enhancing positive impacts, and managing material risks and opportunities
13.3.2.2.1
N/A
BUSINESS CONDUCT
ESRS G1
GOV-1 Roles and responsibilities of administrative, management, and supervisory bodies of the company
13.1.2.1
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[IRO-2]
Table 5: List of Data Points Contained in Cross-Cutting and Thematic Standards Derived from Other EU Regulations
DISCLOSURE
LOCATION IN THE REPORT
(SECTION NUMBER)
OMISSIONS AND EXPLANATIONS
IRO-1 Description of processes for identifying and assessing material impacts, risks, dependencies, and opportunities related to biodiversity and ecosystems
13.1.3.4.1
G1-1 Corporate culture and business conduct policies
13.4.1.2.1
G1-2 Management of relationships with suppliers
13.4.1.2.2
G1-3 Prevention, detection, and mitigation of corruption and bribery
13.4.1.2.3
G1-4 Confirmed incidents of corruption or bribery
13.4.1.3.1
G1-5 Political influence and lobbying activities
N/A
G1-6 Payment practices
13.4.1.3.2
ADDITIONAL ISSUES
Financial education
13.3.2.1.1
Cybersecurity and data security
13.4.1.3.4
Tax transparency
13.4.1.3.3
Sustainable finance
13.2.1.2.1
DISCLOSURE REQUIREMENT
AND ASSOCIATED DATA POINT
REFERENCE TO THE REGULATION ON SUSTAINABILITY- RELATED DISCLOSURES IN THE FINANCIAL SERVICES SECTOR (SECTION NO.)
REFERENCE TO THE THIRD PILLAR (2)
REFERENCE TO THE BENCHMARK REGULATION (3)
REFERENCE TO THE EUROPEAN CLIMATE LAW (4)
CHAPTER NUMBER
ESRS 2 GOV-1
Gender diversity of the Management Board members (point 21(d))
13.1.2.1
Annex II to Commission Delegated Regulation (EU) 2020/1816 (5)
13.1.2.1
ESRS 2 GOV-1
Percentage of independent Management Board members (point 21(e))
13.1.2.1
Annex II to Commission Delegated Regulation (EU) 2020/1816
13.1.2.1
ESRS 2 GOV-4
Due diligence statement (point 30)
13.1.2.4
13.1.2.4
ESRS 2 SBM-1
Participation in fossil fuel-related activities (point 40(d)(i))
13.1.3.1
ESRS 2 SBM-1
Participation in chemical production activities (point 40(d)(ii))
N/A
ESRS 2 SBM-1
Participation in controversial weapons-related activities (point 40(d)(iii))
N/A
ESRS 2 SBM-1
Participation in tobacco cultivation and production activities (point 40(d)(iv))
N/A
ESRS E1-1
Transition plan to achieve climate neutrality by 2050 (point 14)
13.2.1.1
Article 2(1) of Regulation (EU) 2021/1119
13.2.1.1
E SRS E1-1
Entities excluded from the scope of Paris Agreement-aligned benchmarks (point 16(g))
13.2.1.1
Article 449a of Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 1: Banking portfolio – Climate change transition risk: credit quality of
Article 12(1)(d)- (g) and 12(2) of Delegated Regulation (EU) 2020/1818
13.2.1.1
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DISCLOSURE REQUIREMENT
AND ASSOCIATED DATA POINT
REFERENCE TO THE REGULATION ON SUSTAINABILITY- RELATED DISCLOSURES IN THE FINANCIAL SERVICES SECTOR (SECTION NO.)
REFERENCE TO THE THIRD PILLAR (2)
REFERENCE TO THE BENCHMARK REGULATION (3)
REFERENCE TO THE EUROPEAN CLIMATE LAW (4)
CHAPTER NUMBER
exposures by sector, issue and residual maturity
ESRS E1-4
Greenhouse gas emission reduction targets (point 34)
13.2.1.4
Article 449a of Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 3: Banking portfolio – Transition risks associated with climate change: measures of adaptation
Article 6 of Delegated Regulation (EU) 2020/1818
13.2.1.4
ESRS E1-5
Energy consumption from fossil sources disaggregated by source (applies only to sectors with significant climate impact), point 38
13.2.1.3.1
13.2.1.3.1
ESRS E1-5
Energy consumption and energy mix, point 37
13.2.1.3.1
13.2.1.3.1
ESRS E1-5
Energy intensity associated with activities in sectors with significant climate impact, points 40–43
13.2.1.3.1
13.2.1.3.1
ESRS E1-6
Gross greenhouse gas emissions for Scopes 1, 2, and 3 and total greenhouse gas emissions, point 44
13.2.1.4
Article 449a of Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 1: Banking portfolio – Climate change transition risk: credit quality of exposures by sector, issue and residual maturity
Article 5(1), Article 6, and Article 8(1) of Delegated Regulation (EU) 2020/1818
13.2.1.4
ESRS E1-6
Gross greenhouse gas emission intensity, points 53–55
Article 449a of Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 3: Banking portfolio – Transition risks associated with climate change: measures of adaptation
Article 8(1) of Delegated Regulation (EU) 2020/1818
ESRS E1-7
Greenhouse gas removals and carbon emission units, point 56
13.2.1.4
Article 2(1) of Regulation (EU) 2021/1119
13.2.1.4
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DISCLOSURE REQUIREMENT
AND ASSOCIATED DATA POINT
REFERENCE TO THE REGULATION ON SUSTAINABILITY- RELATED DISCLOSURES IN THE FINANCIAL SERVICES SECTOR (SECTION NO.)
REFERENCE TO THE THIRD PILLAR (2)
REFERENCE TO THE BENCHMARK REGULATION (3)
REFERENCE TO THE EUROPEAN CLIMATE LAW (4)
CHAPTER NUMBER
ESRS E1-9
Portfolio reference exposure to physical climate risk, point 66
13.2.1.7
Annex II to Delegated Regulation (EU) 2020/1818, Annex II to Delegated Regulation (EU) 2020/1816
13.2.1.7
ESRS E1-9
Disaggregation of monetary amounts by acute and chronic physical risk, point 66(a)
ESRS E1-9
Location of significant asset components subject to substantial physical risk, point 66(c)
13.2.1.7
Article 449a of Regulation (EU) No 575/2013; points 46 and 47 of Commission Implementing Regulation (EU) 2022/2453; Template 5: Banking portfolio – physical risk related to climate change: exposures subject to physical risk
13.2.1.7
ESRS E1-9
Breakdown of book value of real estate by energy efficiency classes, point 67(c)
13.2.1.7
Article 449a of Regulation (EU) No 575/2013; point 34 of Commission Implementing Regulation (EU) 2022/2453; Template 2: Banking portfolio – Transition risk related to climate change: real estate- backed loans – energy efficiency of collateral
13.2.1.7
ESRS E1-9
Degree of portfolio exposure to climate-related opportunities, point 69
13.2.1.7
Annex II to Delegated Regulation (EU) 2020/1818
13.2.1.7
ESRS E2-4
Quantity of each pollutant listed in Annex II to the Regulation on the European Pollutant Release and Transfer Register (E-PRTR) emitted into air, water, and soil, point 28
N/A
ESRS E3-1
Water and marine resources, point 9
N/A
ESRS E3-1
Specific policy, point 13
N/A
ESRS E3-1
Sustainable practices in the field of seas and oceans, point 14
N/A
ESRS E3-4
Total volume of water recycled and reused, point 28(c)
N/A
ESRS E3-4
N/A
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DISCLOSURE REQUIREMENT
AND ASSOCIATED DATA POINT
REFERENCE TO THE REGULATION ON SUSTAINABILITY- RELATED DISCLOSURES IN THE FINANCIAL SERVICES SECTOR (SECTION NO.)
REFERENCE TO THE THIRD PILLAR (2)
REFERENCE TO THE BENCHMARK REGULATION (3)
REFERENCE TO THE EUROPEAN CLIMATE LAW (4)
CHAPTER NUMBER
Total water consumption in m³ per net revenue from own operations, point 29
ESRS 2 IRO1-E4 point 16(a)(i)
N/A
ESRS 2 IRO1-E4 point 16(b)
N/A
ESRS 2 IRO1-E4 point 16(c)
N/A
ESRS E4-2
Sustainable land/agriculture practices or policies, point 24(b)
N/A
ESRS E4-2
Sustainable ocean/marine practices or policies, point 24(c)
N/A
ESRS E4-2
Policies for deforestation prevention, point 24(d)
N/A
ESRS E5-5
Non-recycled waste, point 37(d)
N/A
ESRS E5-5
Hazardous and radioactive waste, point 3
N/A
ESRS 2 SBM-3-S1
Risk of forced labour cases, point 14(f)
13.3.3
13.1.3.3
ESRS 2 SBM-3-S1
Risk of child labour cases, point 14(g)
13.3.3
13.1.3.3
ESRS S1-1
Commitments regarding policies on human rights respect, point 20
13.3.1.1.1
13.3.1.1.1
ESRS S1-1
Due diligence strategies concerning issues covered by core International Labour Organization Conventions No. 1–8, point 21
13.3.1.1.1
13.3.1.1.1
ESRS S1-1
Procedures and measures for preventing human trafficking, point 22
13.3.1.1.1
Annex II to Commission Delegated Regulation (EU) 2020/1816
13.3.1.1.1
ESRS S1-1
Policy or management system for accident prevention at work, point 23
13.3.1.1.1
13.3.1.1.1
ESRS S1-3
Complaint-handling mechanisms, point 32(c)
13.3.1.1.3
13.3.1.1.3
ESRS S1-14
Number of work-related deaths and the number and rate of work-related accidents, point 88(b)-(c)
13.2.1.2.9
13.2.1.2.9
ESRS S1-14
Number of days lost due to injuries, accidents, fatalities, or illnesses,
point 88(e)
13.2.1.2.9
Annex II to Commission Delegated Regulation (EU) 2020/1816
13.2.1.2.9
ESRS S1-16
Unadjusted gender pay gap, point 97(a)
13.2.1.2.11
13.3.1.2.11
ESRS S1-16
Excessive CEO pay level, point 97(b)
13.2.1.2.11
Annex II to Commission Delegated Regulation (EU) 2020/1816
13.2.1.2.11
ESRS S1-17
Cases of discrimination, point 103(a)
13.2.1.2.12
13.2.1.2.12
ESRS S1-17
Non-compliance with UN Guiding Principles on Business and Human Rights and OECD Guidelines,
point 104(a)
13.2.1.2.12
Annex II to Delegated Regulation (EU) 2020/1816, Article 12(1) of Delegated
13.2.1.2.12
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DISCLOSURE REQUIREMENT
AND ASSOCIATED DATA POINT
REFERENCE TO THE REGULATION ON SUSTAINABILITY- RELATED DISCLOSURES IN THE FINANCIAL SERVICES SECTOR (SECTION NO.)
REFERENCE TO THE THIRD PILLAR (2)
REFERENCE TO THE BENCHMARK REGULATION (3)
REFERENCE TO THE EUROPEAN CLIMATE LAW (4)
CHAPTER NUMBER
Regulation (EU) 2020/1818
ESRS 2 SBM-3-S2
Significant risk of child labour or forced labour in the value chain, point 11(b)
N/A
ESRS S2-1
Commitments regarding policies on human rights respect, point 17
N/A
ESRS S2-1
Policies related to employees in the value chain, point 18
N/A
ESRS S2-1
Non-compliance with UN Guiding Principles on Business and Human Rights and OECD Guidelines, point 19
N/A
ESRS S2-1
Due diligence strategies concerning issues covered by core International Labour Organization Conventions No. 1–8, point 19
N/A
ESRS S2-4
Human rights-related issues and incidents related to the upstream and downstream value chain, point 36
N/A
ESRS S3-1
Commitments regarding policies on human rights respect, point 16
N/A
ESRS S3-1
Non-compliance with UN Guiding Principles on Business and Human Rights, ILO standards, or OECD Guidelines, point 17
N/A
ESRS S3-4
Human rights-related issues and incidents, point 36
N/A
ESRS S4-1
Policy concerning consumers and end-users, point 1
Annex II to Delegated Regulation (EU) 2020/1816, Article 12(1) of Delegated Regulation (EU) 2020/1818
ESRS S4-1
Non-compliance with UN Guiding Principles on Business and Human Rights and OECD Guidelines, point 17
13.3.1.1
13.3.1.1
ESRS S4-4
Human rights-related issues and incidents, point 35
13.3.2.1.4
13.3.2.1.4
ESRS G1-1
United Nations Convention against Corruption, point 10(b)
13.4.1.1.1
13.4.1.1.1
SRS G1-1
Whistleblower protection, point 10(d)
13.4.1.1.1
13.4.1.1.1
ESRS G1-4
Fines for breaches of anti-corruption and anti- bribery regulations, point 24(a)
13.4.1.3.1
13.4.1.3.1
ESRS G1-4
Standards on anti-corruption and anti-bribery, point 24(b)
13.4.1.3.1
Annex II to Commission Delegated Regulation (EU) 2020/1816
13.4.1.3.1
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13.2 Environmental Information
13.2.1 Climate Change [ESRS E1]
13.2.1.1 Transition Plan for Climate Change Mitigation [E1-1]
As of the reporting date, 31 December 2024, we did not have a transition plan for climate change mitigation. In 2024, we initiated analytical work related to the calculation and assessment of the materiality of financed emissions (particularly in relation to the portfolio of credit and investment exposures, i.e., Category 15 of Scope 3). Based on the outcomes of these efforts, we will formalise, within the next two years, a transition plan that complies with regulatory requirements.
In 2024, we conducted analytical work on the calculation and assessment of the materiality of financed emissions (particularly in relation to the portfolio of credit and investment exposures, i.e., Category 15 of Scope 3). Based on the results of this work, by the end of 2024, we adopted the Decarbonisation Guidelines for the Pekao Group’s Credit Portfolio . These guidelines define the key substantive assumptions and directions for further decarbonisation actions, which will be utilised in the process of developing the business model transformation plan.
In the ongoing work on the transformation plan for climate change mitigation and the Decarbonisation Guidelines for the Pekao Group’s Credit Portfolio set at the end of 2024, we are focusing on the International Energy Agency’s (IEA) Net Zero Emissions (NZE) scenario. This scenario aligns with limiting global warming to no more than 1.5°C above pre-industrial levels by 2100. Under our adopted scenario, global greenhouse gas emissions are expected to decrease by 38% by 2030 and by 100% by 2050, relative to the 2020 baseline year.
Using the carbon footprint calculation methodology for financed emissions in both absolute terms and economic intensity (Category 15, Scope 3) developed by the Partnership for Carbon Accounting Financials (hereinafter: “PCAF”) and available data sources, the Bank calculated the carbon footprint of its credit and investment portfolio (as of 31 December 2023, the balance sheet exposure value amounted to EUR 34,014 million) at 5.4 mtCO2e (including Scope 1 and Scope 2 of financed entities).
The following asset categories were included:
● Listed shares and corporate bonds;
● Corporate loans and unlisted company shares;
● Project finance;
● Commercial real estate;
● Mortgage loans;
● Vehicle loans.
Within this portfolio structure, corporate loans, unlisted company shares, and project finance collectively accounted for 60% of the Bank’s financed emissions in Category 15, Scope 3. From the perspective of decarbonisation potential and contribution to financed emissions, we identified the portfolios financing electricity generation and iron and steel production as the most material within the above structure.
The results of this analysis will serve as the foundation for setting quantitative decarbonisation targets for 2030 and 2050 as part of the comprehensive decarbonisation plan covering the entire credit and investment portfolio of the Bank. We will utilise the best available data (including transitioning to an emissions intensity measure based on production intensity, in line with decarbonisation scenario requirements) and modelling solutions that ensure the decarbonisation process adheres to the 1.5°C warming limit, as stipulated by the Paris Agreement and updated international commitments. In the coming years, we will also establish credible decarbonisation targets for additional sectors identified as material in terms of emissions reduction potential and strengthening market position. The transformation plan will be subject to periodic updates to ensure consistency and adequacy in the context developments.
The most significant activities supporting sustainable development and, primarily, climate change mitigation that we undertake as a Bank include the continuous implementation of eco-friendly solutions in our own operations and engagement in financing Poland’s energy transition, alongside tailored product offerings to meet the dynamically evolving market demand. We are introducing dedicated solutions for corporate customers, businesses, and retail customers). The Bank perceives relatively the highest leverage potential in relation to strategic customers, whose total share in a given sector’s exposure exceeds 65%.
Despite the current absence of quantitative decarbonisation targets based on scientific evidence, we identify these actions and initiatives as the primary decarbonisation levers for the credit and investment portfolio. This is reflected in the quantitative key
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performance indicators adopted in the ESG Strategy (detailed in section 13.2.1.3.1 of this Report). At the same time, during the reporting period, the Bank, due to the lack of established decarbonisation targets, did not correlate the impact of undertaken actions with potential achieved emission reductions in the financing portfolio and own operations.
In the coming years, to achieve the objectives set within the transformation plan, we will develop a selective growth strategy, increasing financing for sectors involved in new low-emission investments while simultaneously limiting exposure to high- emission entities. Specific solutions, including our role in the cooperation model, will be determined by the transformation maturity of our customers and their needs.
Where applicable, we will also analyse locked-in emissions that may negatively impact the feasibility of achieving set targets, both in our own operations and in managing the credit and investment exposure portfolio.
Our transformation plan will be incorporated into the overall development strategy and financial plans, with progress being subject to periodic regulatory disclosures. Given the nature of our operations, we are not excluded from the EU climate benchmarks aligned with the Paris Agreement. The decarbonisation guidelines forming the basis for the transition plan of Bank Pekao S.A. were approved by the ESG Council, which serves as an advisory and supervisory body for implementing strategic ESG assumptions.
13.2.1.2 Management of Impacts, Risks, and Opportunities
13.2.1.2.1 Policies Related to Climate Change Mitigation and Adaptation [E1-2]
At our Bank, climate aspects are integrated into the internal regulatory framework and implemented across various operational areas as sustainable development factors. Consequently, most internal regulations address not only climate change-related aspects but also broader environmental, social, and corporate governance matters. The internal regulations outlined below address climate change mitigation and adaptation aspects identified through the IRO process, both concerning our own operations and the management of the credit and investment exposure portfolio.
As of the end of 2024, we did not have a single document serving as a climate policy that shapes the Bank’s approach to climate change mitigation, adaptation, and the utilisation of market opportunities arising from the transition to a sustainable economy. Qualitative and quantitative goals, as well as the pathways for their implementation – along with procedures for monitoring and managing climate risks and opportunities – are dispersed across internal documents of varying levels of authority, from the Bank’s ESG Strategy to implementing regulations such as the Supplier Code of Ethics or internal guidelines on transaction identification and monitoring.
In the process of shaping selected internal regulations, we take into account external standards and market norms, particularly best market practices and codes of sustainable development values. In cases where such norms have been applied, this has been indicated in the description of the regulations.
We have identified the key internal and external stakeholder groups that exert the greatest influence on the functioning of the unit. Among our internal stakeholders, the most important to us are employees and employee and trade union organisations; in the case of external stakeholders, these include shareholders, customers, broadly understood regulatory and supervisory authorities of the banking sector, as well as our suppliers and business partners. We do not conduct thematic consultations for the purpose of setting objectives and directions of regulations forming internal rules that constitute our climate policy; however, we remain in constant dialogue with internal and external stakeholders through channels appropriate to each group (e.g. General Meeting of Shareholders, financial results conferences, participation in industry associations, internal communication). Each time, the process of developing relevant regulations involves operational units appropriately selected in terms of their competencies.
All of the regulations listed below are internal in nature and thus take into account the interests and demands of key stakeholders in this context (e.g. employees and employee organisations). At the same time, they are not, as a rule, subject to discussion with external stakeholders and are not made available to the public in their full form and content. The most important content of selected documents (e.g. Supplier Code of Ethics or ESG Strategy ) is published on the dedicated websites of the Bank.
Withing the timeframe of the future strategy , we plan to develop a regulatory document that will systematically coordinate aspects related to managing the impacts, risks, and opportunities arising from climate change across all areas of the Bank’s operations.
Our primary document supporting the identification of opportunities related to climate change mitigation and adaptation, as well as outlining possibilities for reducing our negative impact on the climate, is the ESG Strategy for 2021-2024. This document was developed prior to the introduction of European sustainability reporting standards; therefore, the structure of the goals,
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directions of action, and development plans presented in it does not always fully correspond with the regulatory requirements specifying the characteristics of these elements.
The ESG Strategy sets out our course of action both in the area of our own operations and in relation to lending and investment activities. The final wording of the Strategy is the result of dialogue between the Bank’s internal stakeholders. The ESG Strategy has been reviewed by the ESG Council, adopted by the Management Board, and presented to the Supervisory Board. It has also been made available to our stakeholders on the Bank’s website. The implementation of the Strategy is monitored by the ESG Council, which includes members of the Bank’s Management Board and designated operational units.
The achievement of key objectives defined in the ESG Strategy is communicated to stakeholders in annual non-financial reports.
In the area of our own operations, the Strategy identifies the most important areas of action supporting our efforts to reduce our negative impact on the climate and, where possible, to remedy the negative climate effects resulting from our activities. In the context of our commitment to mitigating climate change and preventing further changes, our priority is to introduce processes for calculating and monitoring our carbon footprint in Scope 1 and Scope 2, as well as in the supply chain (Scope 3). To achieve this, we implement eco-friendly improvements at the Bank’s locations to optimise their functioning and reduce the volume of materials consumed.
In the area of lending and investment activities, we see the greatest opportunities for reducing our negative impact on the climate in the gradual transformation of our credit portfolio towards reducing our exposure to high-emission activities (e.g. limiting the financing of new hard coal and lignite mining projects and coal-fired power generation projects) and increasing our involvement in financing low-emission (green) projects that support the transformation of the Polish energy sector (including support for regions most exposed to economic transformation risks related to the decarbonisation of the Polish economy). To identify the effects of our actions and their impact on the scale of emissions financed by us, we also commenced the calculation of the carbon footprint of our credit and investment portfolio in 2024 (Scope 3, category 15).
We are also leveraging our business opportunities related to climate change mitigation and adaptation by supporting customers in both the retail and corporate banking segments through the development of financial solutions dedicated to sectors such as renewable energy (including wind farms, biogas plants, and photovoltaics), new low-emission technologies, low-emission transport, and green construction. An important area where we see opportunities to capitalise business potential related to climate change mitigation and the development of climate adaptation solutions is our participation in government and EU climate recovery and transformation programmes.
Own Operations and Supply Chain
The climate policy regarding our own operations and supply chain, in addition to the directions indicated by the ESG Strategy , is described in the following documents:
• The Policy on Energy Consumption Optimisation at Bank Polska Kasa Opieki Spółka Akcyjna, relating to climate change mitigation within the daily operations of the Bank’s employees,
• The Procurement Policy at Bank Polska Kasa Opieki Spółka Akcyjna , integrating ESG factors into the procurement process,
• The Supplier Code of Ethics at Bank Pekao S.A. , which addresses suppliers’ own practices related to climate change mitigation.
We currently do not have regulations implementing strategic decarbonisation targets established for our own emissions (Scope 1 and Scope 2). However, as we adopt specific decarbonisation goals for the Bank and introduce a business model transformation plan, we will establish appropriate dedicated regulations and guidelines to support the management of greenhouse gas emissions. Nonetheless, the Bank currently has guidelines that indirectly support efforts to reduce our negative climate impact in the area of our own operations (e.g. energy consumption management) and selected aspects of the supply chain ( Supplier Code of Ethics ).
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Energy Consumption Management
The Bank has implemented the Policy on Energy Consumption Optimisation at Bank Polska Kasa Opieki Spółka Akcyjna , adopted by the Management Board in 2019, which defines principles and rules related to energy consumption within activities aimed at minimising the negative climate effects resulting from the use of real estate and equipment (e.g. guidelines for better property management and utilisation help us reduce greenhouse gas emissions within our own operations). The Real Estate Department is responsible for overseeing the Policy on Energy Consumption Optimisation at Bank Polska Kasa Opieki Spółka Akcyjna. The regulations included in this policy apply to all Bank employees and their practices in the daily use of real estate and resources, particularly to the Bank units responsible for managing and maintaining owned and leased properties, as well as units involved in the procurement of equipment used in the Bank’s operations.
Supplier Code of Ethics and Procurement Policy
Incorporating climate change mitigation and adaptation considerations into the processes of establishing and conducting cooperation with external entities (including suppliers) is one of our strategic objectives. The documents regulating this cooperation are the internal Procurement Policy at Bank Polska Kasa Opieki Spółka Akcyjna (hereinafter: “ Procurement Policy ”), adopted in 2024, and the Supplier Code of Ethics at Bank Pekao S.A. (hereinafter: “ Code of Ethics ”). The Procurement Department is responsible for overseeing the Bank’s Procurement Policy , and its provisions define the roles of both this Department and other participants in the Bank’s procurement process, as well as the role of the Code . The Code of Ethics supplements the Bank’s internal regulations and includes provisions promoting climate change mitigation as well as compliance with social and corporate governance factors. In accordance with the provisions of the Code of Ethics , each supplier is required to submit a statement confirming their awareness of and compliance with its provisions.
More information on both documents can be found in section 13.4.1.2.2. Supplier Relationship Management of this Report.
Climate Risk and ESG Management in the Credit and Investment Portfolio
With regard to managing sustainability risk in the credit and investment portfolio, we have implemented a range of internal regulations and guidelines that support the execution of our strategic objectives while ensuring compliance with regulatory requirements.
Credit Risk Strategy and Policy
In our credit and investment operations, the Bank’s ESG Strategy sets the framework for managing business opportunities linked to climate adaptation, climate change mitigation, and reducing our environmental impact. These principles are embedded in our lending processes through a series of internal policies, the most significant of which are the Credit Risk Strategy (approved by the Bank’s Supervisory Board) and the Credit Risk Policy (approved by the Bank’s Management Board). The level of integration depends on the customer segment and the nature of the transaction.
These policies aim to:
● Ensure effective credit risk management across the Bank and the Capital Group;
● Define our risk appetite, including ESG-related risks in our lending portfolio;
● Integrate ESG risk, particularly climate risk, into our credit process.
The Credit Risk Policy complements the Credit Risk Strategy, focusing on principles and guidelines concerning credit risk, including ESG factors. These regulations apply across all units involved in customer acquisition, transaction assessment, risk management, and portfolio oversight. The Integrated Risk Management Department is responsible for overseeing these policies within the Bank.
Both the Credit Risk Strategy and the Credit Risk Policy support the reduction of our negative impact on climate change by shaping the balance sheet structure towards low-emission exposures. As a rule, we do not undertake new financing and limit financing for existing customers operating in high-emission sectors, such as electricity and heat generation using hard coal and lignite, ancillary services supporting coal mining and extraction, and the production of machinery and installations for the coal mining industry. Exceptions are made for transformational projects in the Polish energy sector.
The Credit Risk Policy is accompanied by a range of detailed supporting regulations dedicated to identifying and assessing risks in the sustainable development area, particularly climate risk, in relation to strategic and corporate customers, small and medium-sized enterprises, business customers, and local government financing. These regulations enable us to:
● Redirect financial flows towards strategically prioritised areas while maintaining risk appetite;
● Identify high- and medium-emission portfolios and exposures, allowing us to assess the potential for managing the portfolio’s carbon footprint to reduce our climate impact.
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Additionally, these detailed regulations serve an informational and educational role, outlining key aspects of ESG risk, including climate risk (transition risk and physical risk) and environmental risk, while defining concepts such as green (sustainable) financing and brown (high-emission) financing. Stakeholders involved in the credit process contribute to the establishment and implementation of credit regulations. Selected aspects of the Bank’s ESG risk appetite are made available to external stakeholders.
From 2024 onwards, ESG risk management processes within the exposure portfolio are governed by a procedure approved by the Vice President overseeing the Risk Management Division, with ownership assigned to the Risk Strategy and Development and ESG Department. This regulation, incorporating the requirements of the Polish Financial Supervision Authority (KNF) , the European Banking Authority, and best market practices relevant to the banking sector’s sustainable development, sets out actions for identifying ESG risks, along with methodologies and tools for measurement and control. Specifically, the procedure governs the operation of the strategic limit on green financing for Bank Pekao and the Pekao Group, defined as the percentage share of green financing within the overall financing portfolio. The purpose of this indicator is to support decision-making processes related to business opportunities associated with climate change mitigation and adaptation. The regulation also introduces internal indicators to monitor exposure to high-emission financing (in fossil fuel sectors and fossil-fuel-based energy production) and greenhouse gas emission intensity in corporate financing. These indicators are used to manage and reduce our negative climate impact at the portfolio level. Responsibility for implementing and modifying this regulation is assigned to the Risk Area, as outlined in the Bank’s internal regulations. Additionally, the regulation specifies the scope and manner in which Pekao Capital Group companies report ESG risk information and data to the Bank.
Sustainable Finance Framework Pekao S.A.
In the area of products and customer collaboration, it is essential to address market needs and leverage related opportunities. Since 2023, the Sustainable Finance Framework Pekao S.A. (hereinafter: “ Framework ”) has governed the Bank’s investment policy in corporate and investment banking. The Framework establishes not only the issuance framework for the Bank’s sustainable bonds, but also specifies conditions that must be met for an investment transaction with a customer to be considered sustainable in environmental or social terms.
The issuance framework, positively reviewed by an independent second-party opinion (SPO) from Sustainalytics, is available to all Bank stakeholders on the Bank’s website. Responsibility for managing processes regulated by the Framework is assigned to the areas of Corporate Banking, Markets and Investment Banking, Business Banking Division, and Pekao Brokerage House ( Biuro Maklerskie Pekao) , as per the Bank’s internal regulations.
The Framework defines the eligibility of investments financed by proceeds from EMTN bonds issued by the Bank. The document outlines the process for project selection, proceeds management, allocation of funds, and impact reporting. The classification criteria for eligible climate change mitigation projects are based on selected technical criteria from the EU Taxonomy (in line with Annex 1 to Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021). The Framework aligns with leading international market best practices, including:
• Green Bond Principles (June 2021, updated in June 2022);
• Social Bond Principles (June 2023);
• Sustainability Bond Guidelines (June 2021), published by the International Capital Market Association;
• Green Loan Principles (February 2023);
• Social Loan Principles (February 2023), published by the Loan Market Association on 17 October 2023.
Offering green products
The modus operandi associated with either offering green products or supporting sustainable financing depends on the type of product offered:
● In the case of residential customers and consumer loans, the offering is regulated by the Energy Efficiency Law of May 20, 2016, which introduces a national target of 5580,000 toe of final energy savings to be achieved by the end of 2030, which is implemented from January 1, 2021 to December 31, 2030. The 2030 target will be implemented, among other things, through a system of energy efficiency certificates;
● For businesses, we use the European Funds for a Modern Economy Program operating under the Bank of National Economy (BGK) Act of March 14, 2003;
● Financing for corporate clients is governed by, among other things, the Sustainable Finance Framework, which was prepared in accordance with applicable international standards published by ICMA and LMA (as described above).
13.2.1.2.2 Actions and Resources Related to Climate Policy [E1-3]
Both the strategic objectives and the related actions were established prior to the introduction of regulatory requirements under the European Sustainability Reporting Standards. As a result, the objectives and actions presented by us do not fully
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correspond to the regulatory requirements of ESRS E1. The implementation of the objectives and operational directions set out in the regulations shaping the Bank’s climate policy required us to undertake a range of initiatives regarding the Bank’s operations. Due to the nature of our business, our ability to implement measures aimed at mitigating and adapting to climate change is not dependent on the availability and distribution of resources. In 2024, we undertook a series of actions in the areas of our own operations, financing portfolio, credit and investment activities related to the management of sustainable development risks and opportunities in the context of climate change mitigation and adaptation. At the same time, due to the lack of defined decarbonisation targets for our own operations, we did not translate the actions carried out during the ESG Strategy period into expected and achieved reductions in greenhouse gas emissions.
We did not identify any incidents in which the Bank’s operational activities or customer financing resulted in significant harm to third parties. Consequently, no remedial or compensatory actions were undertaken.
Own Operations
Due to our nature as a financial institution, the Bank’s capital expenditures (CAPEX) and operating expenses (OPEX), in accordance with the provisions of Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021, are not subject to assessment in terms of eligibility or compliance with the sustainability criteria of the EU Taxonomy (including the application of nature-based solutions, engineering, or dedicated technological solutions). The expenditures and investments incurred in relation to our own operations during the period covered by the ESG Strategy are also financially insignificant from the perspective of the unit’s operations. We apply a prudent approach to avoid misclassification risks, greenwashing, and the inability to directly link expenditures to the implementation of climate policy objectives and directions. Consequently, we do not identify any significant activities in the area of own operations. If we can reliably identify relevant actions and related expenditures, we will disclose the appropriate amounts in subsequent years
In 2024, we maintained strategic initiatives aligned with the Bank’s long-term objectives of reducing negative climate impact and supporting adaptation processes in our locations. The most notable initiatives included:
• Gradual replacement of older lighting systems with energy-efficient LED lighting;
• Energy consumption optimisation (reducing contracted power levels);
• Replacement of uninterruptible power supplies (UPS) with new, more efficient models;
• Decommissioning of unnecessary emergency power connections;
• Installation of energy-efficient air conditioning systems;
• Analyses for the installation of reactive power compensation devices (to eliminate unnecessary energy expenditures);
• Switching electronic devices to standby mode in the evening hours;
• Installation of water pressure reducers or aerators and replacement of household appliances with new, energy-efficient models.
In 2024, we signed a one-year contract for the purchase of electricity, alongside the purchase of guarantees of origin for the entire contracted volume from renewable energy sources. We also received Certificate RGP_ENERGAOB_2024-12-02_10645 for the entire year of 2024, confirming the introduction of 28,000 MWh of electricity generated from wind sources into the grid.
We continue to enhance communication processes by implementing digital solutions where possible (e.g., introducing electronic handover protocols) and aligning with our strategic objectives. In 2024, we also replaced part of our fleet with low- emission (EURO 6) and hybrid vehicles and placed additional orders for delivery in 2025.
Credit and Investment Activities
Given our role as a financial institution, the most significant contributions to sustainable development, particularly climate change mitigation and adaptation, involve allocating substantial financial resources to support Poland’s energy transition and adapting our product offering to evolving market demand. This includes financing investment goals and providing sustainability- linked financing. To this end, we are implementing tailored solutions for corporate, business, and retail customers. The initiatives reported as of the end of 2024 were defined before the European Sustainability Reporting Standards became mandatory and before the Bank calculated financed emissions under Scope 3, Category 15. As a result, we do not relate the amounts of financing granted to potential reductions in financed emissions. Despite the absence of quantified decarbonisation targets for the credit and investment portfolio, we see these actions as key drivers of credit and investment portfolio decarbonisation. Key information about the financial products and solutions offered is available to external stakeholders on the Bank’s website. Due to the lack of established decarbonisation targets, the Bank has not linked the impact of activities undertaken in 2024 to potential achieved emissions reductions in the financing portfolio.
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Sustainable Financing for Corporate, Investment, and Business Banking Customers
In 2024, we continued to implement our strategic objectives. The most significant actions increasing the Bank’s involvement in sustainable development financing, including addressing material climate change mitigation and adaptation issues and responding to the evolving market, included:
• Green financing – approximately PLN 13.738 billion;
• New sustainable financing – PLN 12.697 billion;
• Customer bond issuance financing – PLN 20.92 billion;
• EU Taxonomy-aligned financing: gross carrying amount exposure aligned with the EU Taxonomy under CAPEX KPI (PLN 3.173 billion) and TURNOVER KPI (PLN 2.092 billion);
• Other initiatives:
- introduction of a corporate banking customer carbon footprint calculator;
- In the area of business loans, in 2024, guarantee limits from portfolio agreements with BGK in the amount of Biznesmax plus: working capital loans - limit: PLN 136,000,000 and investment loans - PLN 204,000,000; Ekomax - limit: PLN 250,000,000.
In November 2024, we prepared the first allocation report for funds raised through the 2023 issuance of EMTN bonds with a total nominal value of EUR 500 million, aligned with the Sustainable Finance Framework adopted in 2023. In November 2024, we prepared the first report on the allocation of funds raised under the EMTN bond series issued in 2023 for a total nominal amount of €500 million consistent with the 2023 Sustainable Finance Framework. We also achieved the target set by the Sustainable Finance Framework - as of October 15, 2024, the total value of the Qualified Financing Portfolio included 33 projects for a total amount of EUR 526,837,201 under the green Eurobond issue. This value exceeded the issued amount (EUR 500 million), which means that the full allocation was realized within a year from the date of the green bond issue (XS2724428193).
Retail customer financing
In the retail customer segment, we are implementing the ESG Strategy by introducing products dedicated to environmental goals that meet the needs of the financing market for individuals. The Bank is maximizing its business opportunities in this area by continuing to offer:
• Express Loan for EKO purposes up to PLN 100,000 - a PLN 281 million 24 - cash loan with 0% commission and reduced margin/interest rate, when the customer allocates it for EKO purposes related to the purchase / installation of: among others. renewable energy sources: solar collectors, photovoltaic panels / cells including energy storage, central heating boilers (excluding coal and eco-pea boilers), heat pumps and with the use of geothermal heating, vehicles with electric or hybrid propulsion, domestic bio-purification plants, ventilation with heat recovery, domestic water treatment plants from own intakes or rainwater recovery system.
• EKODOM residential loan - PLN 204 million 25 , a loan offer with a reduced margin if the customer invests in energy- saving installations such as solar panels, photovoltaic panels/fires, including energy storage, heat pumps or central heating boilers with geothermal heating as part of the property being financed.
As of November 1, 2024, we have implemented a new process that allows us to evaluate energy performance criteria as early as when a customer applies for a mortgage. If the EP indicator criteria required by the Bank are met, the customer also benefits from a lower margin. The Bank aggregates data on delivered Energy Performance Certificates for statistical purposes.
24 Gross carrying amount of loans as of 31.12.2024
25 Gross carrying amount of loans as of 31.12.2024
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13.2.1.3 Metrics and Targets
13.2.1.3.1 Climate Change Mitigation and Adaptation Targets [E1-4]
13.2.1.3.2 Monitoring the Results of Actions Derived from the Climate Policy
The results of implementing the Bank’s climate policy objectives and directions set out in the ESG Strategy are subject to quarterly internal supervision, in accordance with the provisions of the internal regulations governing the processes of developing and monitoring the ESG Strategy . For the timeframe of the ESG Strategy (2021-2024) we did not set reduction targets aligned with the requirements set forth in ESRS E1. The targets outlined in the ESG Strategy are linked to performance metrics used to assess the effectiveness and efficiency of undertaken actions (a detailed description is provided in Table 6 below), expressed in the appropriate unit depending on the assigned target (these targets refer to financial quotas, not carbon dioxide equivalent as they were not intended as financed emission cutting targets) . The metrics reported below were methodically designed and implemented prior to the introduction of the requirements stemming from the European Sustainability Reporting Standards. Where possible, we have directly referenced the relevant ESRS E1-4 requirements concerning the reporting of metrics related to our undertaken actions. The specified targets and metrics relate, at the level of the credit and investment portfolio, to reducing the Bank’s exposure to transition risk associated with maintaining exposure to high-emission sectors, as well as to seizing business opportunities linked to climate change mitigation and adaptation. Regarding the Bank’s own operations, we have introduced a long-term reduction target extending beyond the scope of the Strategy. We have not assigned climate neutrality at the organizational level or reduction targets. This represents, from the perspective of the ESG Strategy, our ambition and aspiration.
Even though the presented targets and metrics do not fully align with the regulatory requirements of ESRS E1 (as mentioned before, they were set before the said regulatory requirements entered into force), they translate into significant outcomes as regards our ambitions to capitalize on climate change opportunities and mitigate climate risks.
The definitions forming the basis of the strategic targets and metrics related to the credit and investment portfolio are built on expert knowledge, best market practices, and evidence-based substantive standards, including alignment with the EU Taxonomy (activities with a positive impact on the environment and society), the International Capital Market Association (Green Bond Principles and Sustainability-Linked Bond Principles), the Loan Market Association (for green loans and Sustainability-Linked Loan Principles), the European Green Bond Standard (EU GBS) in accordance with Regulation 2023/2631, and the Climate Bonds Initiative. The assumptions, methodology, and performance metrics for the ESG Strategy have also been developed based on a critical analysis of the actions of our peer group; however, the outputs of these efforts were not subject to evaluation by an external body validating them.
As noted in the introduction to this subsection, the target related to reducing greenhouse gas emissions from own operations and the supply chain (beyond the credit and investment portfolio, i.e., Category 15 of Scope 3) has been set beyond the horizon of the ESG Strategy and refers to 2030. Thus, it aligns with the provisions of the Paris Agreement and the European Green Deal, aiming for climate neutrality of the EU economy by 2050.
As part of the ESG Strategy implementation, we have set a number of measurable quantitative and directional targets (see Table 9 below). The reference values of indicators used to assess the effectiveness of undertaken actions have been established, where applicable, for the baseline year designated for the ESG Strategy covering 2021-24, which was set as 2020. Throughout the four-year implementation period of the ESG Strategy , we have not set intermediate targets or milestones, neither for targets related to reducing greenhouse gas emissions from own operations nor for actions concerning the credit and investment portfolio. During the ESG Strategy’s duration, we have not modified the performance metrics.
We have not established targets directly related to environmental issues; however, the green financing eligibility criteria defined within the ESG Strategy are based on the environmental objectives presented in the EU Taxonomy. The Bank has also not involved external stakeholders in the target-setting processes for the ESG Strategy .
The quantitative targets related to financing the credit and investment portfolio set for 2021-24 have been achieved, in all cases significantly exceeding the minimum thresholds indicated as cumulative targets for 2024. A synthetic summary of the results, including progress in reducing greenhouse gas emissions from own operations, is presented in the table below.
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Table 6: Achievement of Quantitative Targets Related to Financing the Credit and Investment Portfolio 2021-2024
TARGET
METRIC DESCRIPTION
CUMULATIVE TARGET
BASELINE YEAR LEVEL (2020)
2024
Amount of new sustainable projects
Balance sheet commitment amount in PLN for new sustainable projects
> PLN 8 billion
N/A
PLN 12.697 billion
Increase in the share of green financing in the Bank’s portfolio
Share of green financing in total carrying amount of the credit and investment portfolio
> 4%
3.2%
7.90%
Reduction of high-emission financing in the Bank’s portfolio
Share of high-emission financing [1] in total carrying amount of the credit and investment portfolio
<1%
1.3%
0.69%
Reduction of own emissions (Scope 1 and 2) by 2024
Absolute emissions in Scope 1 and 2
Climate neutrality by 2030
69,790.9 tCO2e
30 973 tCO2e
We also supported our clients in their ESG bonds issuance. As set out in our ESG Strategy, we intended to mobilise over PLN 22 billion in this manner and achieved, as of end of 2024, PLN 20.92 billion.
The methodology for the above disclosures is based on the following assumptions:
• Financing of sustainable projects refers to the execution of financing in the form of green or social loans based on agreements concluded during the ESG Strategy period (cumulative indicator);
• Support for customer ESG bond issuance pertains to financed green bonds, social bonds, or KPI-linked bonds based on agreements concluded during the ESG Strategy period (cumulative indicator);
• The share of green financing represents the proportion of green loans and acquired green bond issuances as of 31 December 2024 within the Bank’s gross financing.
• The share of high-emission financing represents the proportion of high-emission financings (loans or acquired bond issuances) as of 31 December 2024 within the Bank’s gross financing.
We have not set climate targets related to the decarbonisation of our credit and investment portfolio. However, we have implemented a strategic directional goal associated with calculating portfolio-financed emissions within Scope 3 (Category 15) in 2024. In subsequent years, these calculations will serve as the foundation for defining appropriate methodological frameworks and a timeline for the reduction of financed emissions, ultimately achieving net-zero financed emissions by 2050, in line with the Paris Agreement and the pathway to limiting global temperature rise to a maximum of 1.5˚C above pre-industrial levels. In 2024, we adopted strategic decarbonisation directions for the energy generation and iron and steel sectors, which will form the basis for further actions within the framework of the transformation plan under regulatory requirements. A more detailed elaboration of this issue is provided in section 13.2.1.1. of this Report.
Disclosure Requirement [E1-5] – Energy Consumption and Energy Mix
The objective of the disclosure requirement is to provide insight into the Bank’s total energy consumption in absolute terms, to enhance our energy efficiency, to assess our exposure to coal, oil, and gas-related activities, and to determine the share of renewable energy in our overall energy mix.
When preparing the energy consumption information required by regulations, we report only the energy consumption from processes that we operate or manage as a Group. In the calculations presented below, we applied the same control boundary used for greenhouse gas emissions calculations within the Group. Our presented figures exclude raw materials and fuels that are not combusted for energy production – given our business profile as a financial institution, we do not conduct such operations. We also do not use fuel as a raw material.
The quantitative information provided in Table 10 below regarding energy consumption is expressed in megawatt-hours. Where the original information was provided in a different unit, we have converted it to megawatt-hours using the appropriate conversion factors. The data we present refers solely to final energy consumption (actual energy used by the Group). We generate renewable energy for our own needs, and to avoid double counting, we report this energy only within fuel consumption. We do not apply energy consumption offsetting methods, and the energy we generate is not sold to third parties. We also do not include energy acquired within the Group in the category of “purchased or acquired energy”.
Due to the nature of Pekao Group’s business activities, we do not account for steam, heat, or cooling (considered as “waste energy”) from third-party industrial processes. Similarly, we do not account for renewable or non-renewable hydrogen. For the purpose of calculating Scope 2 greenhouse gas emissions, we have classified electricity, steam, heat, or cooling as originating from renewable and non-renewable sources in accordance with a prudential approach. In other words, we have considered energy to be sourced from renewables only when its origin was explicitly stated in contractual agreements with our suppliers (details regarding the one-year contract and guarantees of origin are described in Section 13.2.1.4.).
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Table 7: Energy Consumption and Energy Mix
ENERGY CONSUMPTION AND ENERGY MIX
2023
2024
1) Total fossil fuel energy consumption (MWh) (sum of rows 1–5)
86,112.77
69,165.09
Share of fossil sources in total energy consumption (%)
72%
71%
2) Nuclear energy consumption (MWh)
0
0
Share of nuclear energy in total energy consumption (%)
0
0
3) Fuel consumption from renewable sources, including biomass (industrial and municipal biological waste, biogas, renewable hydrogen, etc.) (MWh)
0
0
4) Purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)
33,214.64
28,352.02
5) Self-generated renewable energy without fuel consumption (MWh)
0
53.7
6) Total renewable and low-emission energy consumption (MWh) (sum of rows 8–10)
33,214.64
28,405.72
Share of renewable sources in total energy consumption (%)
28%
29%
Total energy consumption (MWh) (sum of rows 6, 7, and 11)
119,327.41
97,570.82
We do not operate in a sector with significant climate impact; therefore, we do not present the structure of energy consumption by type of fossil fuel.
As Pekao Group does not operate in sectors with a significant climate impact, we do not present in this report energy intensity information calculated based on net revenue.
13.2.1.4 Gross Greenhouse Gas Emissions for Scopes 1, 2, and 3 and Total Greenhouse Gas Emissions [E1-6]
To calculate greenhouse gas emissions under Scopes 1 and 2, we applied the methodology outlined in the GHG Protocol Corporate Standard. Due to the nature of our business activities, we do not fall under the European Union Emissions Trading System. The scope of the calculation covered Pekao Group. The calculations were based on internally collected data on the volumes of raw materials consumed (e.g., electricity, petrol, mileage) as well as information published by the National Centre for Emissions Management ( KOBIZE) , the Energy Regulatory Office (URE) , the Department for Environment, Food and Rural Affairs UK (DEFRA), and electricity suppliers. We do not identify biogenic emissions in any category. Greenhouse gas emissions are consistently expressed in tonnes of carbon dioxide equivalent. No external calculation tools were used in the estimation.
As of the reporting date, we had no information regarding circumstances that would significantly impact greenhouse gas emissions.
Pekao Group makes use of guarantees of origin for electricity from renewable sources and engages in Power Purchase Agreements (PPA). The electricity procured under these agreements accounts for 29% of the Group’s total electricity consumption.
The GHG balance for Scope 3, prepared in accordance with the GHG Protocol Corporate Accounting and Reporting Standard, includes only Category 15 in 2024. Categories 1–14 were excluded from the Scope 3 balance in 2024. An assessment for 2023/24 to determine the materiality of emissions from these categories showed that only Category 2 (Capital Goods), Category 3 (Fuel- and Energy-Related Activities [location-based]), and Category 7 (Employee Commuting) exceeded 0.1% of the emissions calculated for Category 15. Nonetheless, as part of our GHG inventory process within the supply chain, we have identified categories that are relevant for estimation and reporting from the perspective of a financial institution’s business profile (in addition to Category 15), namely:
• Purchased Goods (Category 1),
• Capital Goods (Category 2),
• Fuel- and Energy-Related Activities (Category 3),
• Business Travel (Category 6),
• Employee Commuting (Category 7),
• Upstream Leased Assets (Category 8),
• Downstream Leased Assets (Category 13), and
• Franchises (Category 14).
These will be included in the Scope 3 category balance in subsequent years. The remaining Scope 3 categories were deemed irrelevant due to the nature of the Bank’s operations or the unavailability of reliable data for precise calculations. This approach aligns with domestic market practices. In the current reporting year, we do not identify any biogenic emissions resulting from biomass combustion or biodegradation in any emissions category within our value chain.
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The calculated GHG emissions are consistently expressed in tonnes of carbon dioxide equivalent. The scope of calculations for Category 15 covered the exposures of the Bank and its subsidiaries: Pekao Bank Hipoteczny, Pekao Leasing, and Pekao Faktoring. As a result, all entities under the Group’s operational control that provide financing and hold investments in debt and equity instruments were included. The calculation also included the finance lease portfolio. The calculation did not include assets in the value chain, primarily assets and investments managed by the Group and not recognized on the Group's balance sheet, such as assets of investment funds managed by the Group, were not included.
We identified three asset classes in the financial statement that are considered to calculate the financed emissions (financial assets other than held for sale at fair value through profit or loss, financial assets at fair value through other comprehensive income and financial assets valued at amortised cost). Pekao does not calculate average data quality per asset class in the financial statement, however, the Group calculates average data quality per asset classes as defined by PCAF. The averages are as follows:
• Business loans - 4.64
• Equity and bonds - 4.02
• Project finance - 4.77
• Commercial Real Estate - 3.83
• Retail Real Estate - 4.0
• Motor vehicle loans - 3.96
For the purposes of financed emissions calculation for the sovereign debt portfolio we used data sources recommended by PCAF, such as the World Bank and databases managed by the United Climate Change.
We covered 77.82% of the Group on-balance financial assets.
The calculations were conducted within the following asset classes, as defined by the Global GHG Accounting and Reporting Standard for the Financial Industry, developed by the PCAF, of which we have been a member since July 2024. The calculation covered all asset classes defined by this standard that exist within the Group:
• Corporate Financing Portfolio, including general-purpose exposures (business loans and unlisted equity) and project finance exposures;
• Motor Vehicle Loan Portfolio, which in the Group encompasses both credit exposures and all leasing exposures 26 ;
• Mortgage-Backed Loan Portfolio, including retail mortgages and commercial real estate loans;
• Listed Equity and Corporate Bonds Portfolio;
• Sovereign Debt Financing Portfolio.
The calculations for each asset class were carried out in accordance with the Global GHG Accounting and Reporting Standard for the Financial Industry, developed by the PCAF.
For the purpose of financed emissions calculations, the Group relied on both internal and external data sources. The scope of data obtained from external sources included:
• Data from the Central Register of Energy Performance of Buildings, maintained by the Ministry of Development and Technology;
• Average emission factors from the European building emissions database maintained by the PCAF, used for calculating financed emissions related to mortgage loans;
• Reported emissions (emission data collected directly from borrowers or companies in which investments were made);
• Average emission factors from the European asset emissions database maintained by the PCAF;
• Financial and corporate emissions data reported by customers, obtained from Bloomberg and Refinitiv Eikon.
The percentage of financed GHG emissions in the Group’s portfolio, calculated based on primary data (energy performance certificates and corporate reporting), amounted to 40% in 2024 27 .
Other Scope 3 categories identified as materially relevant will be disclosed in subsequent years.
26 Currently, there are no clear criteria and guidelines for classifying leases under Category 3 of the GHG emissions calculation. Considering market practice, we consider leasing as eligible for category 15 under scope 3.
27 The calculations do not include the motor vehicles financing portfolio (data not available).
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Table 8: Greenhouse gas emissions by Scope 1, 2 and 3 in Pekao Group
PEKAO GROUP
RETROSPECTIVE DATA
INTERMEDIATE OBJECTIVES AND YEARS COVERED BY THE OBJECTIVE
2022
2023
2024
% 2024 /2023
2025
2030
2050
ANNUAL TARGET IN % / BASE YEAR
SCOPE 1 GREENHOUSE GAS EMISSIONS
Gross Scope 1 GHG emissions in metric tons of CO2 equivalent
8104
8121
8704
107%
-
-
-
-
Percentage of Scope 1 GHG emissions from regulated emissions trading systems (%)
0
0
0
0
-
-
-
-
SCOPE 2 GREENHOUSE GAS EMISSIONS
Gross Scope 2 GHG emissions in metric tons of CO2 equivalent (location based)
64153
33529
24498
73%
-
-
-
-
Gross Scope 2 greenhouse gas emissions in metric tons of CO2 equivalent (market based)
57312
No calculation
24604
-
-
-
-
-
SIGNIFICANT SCOPE 3 GREENHOUSE GAS EMISSIONS
Total gross indirect (Scope 3) greenhouse gas emissions in metric tons CO2 equivalent
14 657 189
-
-
-
-
15) Inwestycje Investments
14 657 189
-
-
-
-
TOTAL GREENHOUSE GAS EMISSIONS
Total emissions in metric tons of CO2 equivalent (location-based)
72257
41650
32382
78%
-
-
-
-
Total emissions in metric tons of CO2 equivalent (market-based)
65416
No calculation
32513
-
-
-
-
-
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Table 9: Greenhouse gas emissions by Scope 1, 2 and 3 in Bank Pekao and its subsidiaries:
BANK
COMPANIES TOTAL
RETROSPECTIVE DATA
INTERMEDIATE OBJECTIVES AND YEARS COVERED BY THE OBJECTIVE
RETROSPECTIVE DATA
INTERMEDIATE OBJECTIVES AND YEARS COVERED BY THE OBJECTIVE
2022
2023
2024
% 2024 /2023
2025
2030
2050
ANNUAL TARGET IN % / BASE YEAR
2022
2023
2024
% 2024 /2023
2025
2030
2050
ANNUAL TARGET IN % / BASE YEAR
SCOPE 1 GREENHOUSE GAS EMISSIONS
Gross Scope 1 GHG emissions in metric tons of CO2 equivalent
7380
7180
7667
107%
-
-
-
-
724
941
1037
110%
-
-
-
-
Percentage of Scope 1 GHG emissions from regulated emissions trading systems (%)
0
0
0
0
-
-
-
-
0
0
0
0
-
-
-
-
SCOPE 2 GREENHOUSE GAS EMISSIONS
Gross Scope 2 GHG emissions in metric tons of CO2 equivalent (location based)
62634
32236
23306
72%
-
-
-
-
1520
1293
1193
92%
-
-
-
-
Gross Scope 2 greenhouse gas emissions in metric tons of CO2 equivalent (market based)
55681
-
23269
No calculation
-
-
-
-
1631
No calculation
1335
-
-
-
-
-
SIGNIFICANT SCOPE 3 GREENHOUSE GAS EMISSIONS
Total gross indirect (Scope 3) greenhouse gas emissions in metric tons CO2 equivalent
11 809 197
-
-
-
-
2 847 993
-
-
-
-
15) Investments
11 809 197
-
-
-
-
2 847 993
-
-
-
-
TOTAL GREENHOUSE GAS EMISSIONS
Total emissions in metric tons of CO2 equivalent (location-based)
70014
39416
30152
76%
-
-
-
-
2244
2234
2230
100%
-
-
-
-
Total emissions in metric tons of CO2 equivalent (market-based)
63061
-
30141
No calculation
-
-
-
-
2355
No calculation
2372
-
-
-
-
-
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Table 10: Greenhouse gas emission intensity to revenue ratio
GREENHOUSE GAS EMISSION INTENSITY RELATIVE TO REVENUE
2023
2024
Total greenhouse gas emissions (location-based method) per net revenue (t CO2 equivalent / monetary unit)
0,00019%
0,00014%
Total greenhouse gas emissions (market-based method) per net revenue (t CO2 equivalent / monetary unit)
In 2023, we did not calculate emissions using the market-based method
0,00014%
As net income we define income from: Interest, commissions and dividends (values are in accordance with the Bank's 2024 Financial Statements).
13.2.1.5 Greenhouse Gas Removal Projects and Greenhouse Gas Emission Reduction Projects Financed through Carbon Emission Units [E1-7]
The purpose of disclosing information on greenhouse gas removal and emission reduction projects financed through carbon emission units is to provide insight into the unit’s actions aimed at permanently removing or actively supporting the removal of greenhouse gases from the atmosphere, potentially with a view to achieving emission neutrality targets. The scope of these disclosures is not applicable to the Bank’s activities, as neither the Bank nor the Pekao Group undertakes such projects within their own operations. Even if the Bank holds capital involvement in the implementation of such projects within its value chain, due to the lack of control over these projects, it does not meet the requirements for actively supporting the aforementioned activities.
13.2.1.6 Establishment of internal carbon emission pricing [E1-8]
The subject of disclosure is information on whether the Pekao Group uses systems for establishing internal carbon dioxide emission prices, and if so, how they assist in decision-making and encourage the implementation of climate-related policies and goals. Due to the fact that both the Pekao Group and the Bank do not engage in carbon dioxide emission trading, the scope of disclosure does not pertain to our activities.
13.2.1.7 Expected Financial Impacts of Significant Physical and Transition Risks and Potential Climate-Related Opportunities [E1-9]
Pursuant to Annex C to Commission Delegated Regulation (EU) 2023/2772 of 31 July 2023, units preparing their reports in accordance with ESRS requirements for the first time have the option to omit the information included in E1-9. We are exercising this option in the current report.
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13.2.2 EU Taxonomy
Regulation (EU) 2020/852, known as the EU Taxonomy, was developed by the European Commission as part of the European Green Deal. It serves as a key framework for classifying and defining environmentally sustainable investments, supporting the achievement of the EU’s climate and energy targets for 2030.
Under the Taxonomy, environmentally sustainable investments must:
• Make a substantial contribution to at least one of the six environmental objectives,
• Do no significant harm (DNSH) to any of the other objectives,
• Comply with minimum social safeguards.
The criteria for substantial contribution and DNSH have been defined for the following six environmental objectives:
• Climate Change Mitigation (CCM),
• Climate Change Adaptation (CCA),
• Sustainable Use and Protection of Water and Marine Resources (WMR),
• Transition to a Circular Economy (CE),
• Pollution Prevention and Control (PPC),
• Protection and Restoration of Biodiversity and Ecosystems (BIO),
Sustainable development and responsible banking are core strategic goals for Bank Pekao. These priorities were outlined in the Bank Pekao Business Strategy (2021-2024) and further refined in the Bank Pekao ESG Strategy (2021-2024) (hereinafter: ESG Strategy), which identifies the following key environmental objectives:
• Financing sustainable projects,
• Supporting customers in the energy transition and the shift to a low-carbon economy,
• Striving for climate neutrality in its own operations while reducing emissions from its business activities and supply chain
Disclosures on Key Performance Indicators
Pursuant to Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, amending Regulation (EU) 2019/2088 (hereinafter: “Taxonomy” or “EU Taxonomy”), and its implementing acts:
• Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by specifying the content and presentation of information on environmentally sustainable economic activities to be disclosed by undertakings subject to Article 19a or 29a of Directive 2013/34/EU and defining the methodology for compliance with this disclosure obligation (Regulation 2021/2178), as amended by Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023, 28
• Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or adaptation, as well as specifying whether that economic activity does not cause significant harm to any of the other environmental objectives, as amended by Commission Delegated Regulation (EU) 2023/2485 of 27 June 2023 29 .
In its disclosures for 2024, Pekao S.A. Group (“Group”), as a capital group with a credit institution as its parent entity, is required to disclose key performance indicators (KPIs) related to compliance with the Taxonomy concerning two climate objectives:
• CCM (climate change mitigation),
• CCA (climate change adaptation).
28 Commission Delegated Regulation (EU) 2023/2486 of 27 June 2023 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing technical qualification criteria to determine the conditions under which an economic activity qualifies as making a significant contribution to the sustainable use and conservation of water and marine resources, to the transition towards a closed loop economy, to the prevention and control of pollution, or to the protection and restoration of biodiversity and ecosystems, and determining whether that economic activity does not cause serious harm to any other environmental objective, and amending Commission Delegated Regulation (EU) 2021/2178 as regards the public disclosure of specific information in relation to those economic activities.
29 Commission Delegated Regulation (EU) 2023/2485 of 27 June 2023 amending Delegated Regulation (EU) 2021/2139 establishing additional technical screening criteria to determine the conditions under which certain economic activities qualify as contributing significantly to climate change mitigation or climate change adaptation, and to determine whether those activities do not cause significant harm to any other environmental objective.
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Contextual Information on Quantitative Indicators, Including the Scope of Assets and Activities Covered by Key Performance Indicators, Data Sources, and Limitations
Green Asset Ratio
The Green Asset Ratio (GAR) represents the proportion of assets associated with economic activities aligned with the Taxonomy relative to total covered assets. In accordance with Regulation 2021/2178, the numerator of the Green Asset Ratio includes:
• Credit/loan, debt instrument, or equity exposures to financial institutions subject to non-financial reporting obligations under the Non-Financial Reporting Directive;
• Credit/loan, debt instrument, or equity exposures to non-financial corporations subject to non-financial reporting obligations under the Non-Financial Reporting Directive;
• Exposures to households, including:
‒ Mortgage-backed loans for residential real estate;
‒ Loans for building renovations;
‒ Motor vehicles loans.
• Financing of local government authorities.
Pursuant to Regulation 2021/2178, the following are excluded from the numerator and included in the denominator of the Green Asset Ratio:
• Exposures to non-financial corporations not subject to Directive 2014/95/EU 30 of the European Parliament and the Council (hereinafter: “NFRD Directive”, “NFRD”), including SMEs – all entities financed by the Group or whose instruments the Group holds that are not subject to the NFRD and conduct non-financial activities;
• Exposures to non-financial corporations not subject to the NFRD, outside the EU;
• Gross carrying amount of:
‒ derivative instruments,
‒ interbank demand loans;
• Cash and cash-related assets;
• Other assets (goodwill, commodities, etc.).
The following are not included in the calculation of the Green Asset Ratio (i.e., in either the numerator or denominator of the ratio):
• Exposures to central governments and supranational issuers;
• Exposures to central banks;
• Trading portfolio.
In accordance with Regulation 2021/2178, financial corporations use the latest data and key performance indicators of their counterparties to calculate their own key performance indicators. To comply with this requirement, based on the 2023 non- financial reports of customers classified as non-financial corporations, the Group has verified whether counterparties have modified their calculations since the last reporting period and whether they have provided comparative data. Given that the reformulated performance indicators identified by the Group from counterparty corporations do not materially affect the value of the key performance indicators published in the 2023 taxonomy disclosure, the reformulated data has not been presented. Consequently, the value of assets used for the calculation of the Green Asset Ratio as of 31 December 2023 in Formula 1 remains identical to their value in the 2023 taxonomy disclosure.
Key Performance Indicators for Off-Balance Sheet Exposures
Key performance indicators for off-balance sheet positions serve as supplementary metrics that illustrate the extent to which the Group’s off-balance sheet positions, such as:
• Financial guarantees securing loans, advances, and debt securities issued to enterprises subject to the NFRD,
• Managed assets (equity and debt instruments) of enterprises subject to the NFRD,
comply with the taxonomy framework.
Green Asset Ratio for Financial Guarantees – this metric represents the percentage share of financial guarantees supporting loans, advances, and debt securities that finance business activities aligned with the taxonomy, in relation to the total financial guarantees supporting loans, advances, and debt securities issued to enterprises.
30 Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards the disclosure of non-financial and diversity information by certain large units.
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Green Asset Ratio for Managed Assets – this metric reflects the percentage of managed assets (equity and debt instruments) originating from enterprises that finance business activities aligned with the taxonomy, in relation to total managed assets (equity instruments, debt instruments, and other assets).
Financing of Entities Subject to Non-Financial Reporting Obligations under the Non-Financial Reporting Directive
To support disclosures on key performance indicators, the Bank and its subsidiaries have analysed their exposure to financial institutions and non-financial corporations to identify customers required to report non-financial information under the Non- Financial Reporting Directive (NFRD). As part of this process, the Bank calculated the gross carrying amount of loans, advances, debt securities, and equity instruments in the banking portfolio for each identified entity as of 31 December 2024.
For general-purpose financing, the Group determined the gross carrying amount of Taxonomy-eligible and Taxonomy-aligned exposures for customers subject to NFRD reporting, based on the key performance indicators published by these customers in their 2023 Taxonomy disclosures. The Group did not assess the exposures toward companies which were not subject to Article 19a or 29a of the Non-Financial Reporting Directive but remain subsidiaries of a mother company which is subject to the said directive.
In the case of exposures toward undertakings dependent on a parent entity falling within the scope of Article 19a of the Non- Financial Reporting Directive but exempted from sustainability reporting at an individual level, the key performance indicator of that undertaking disclosed by its parent undertaking was applied. Given limited access to relevant data and supporting documentation, the Group did not classify these financings as Taxonomy-aligned. Instead, they have been disclosed solely as Taxonomy-eligible exposures. Where sufficient data was unavailable to reliably assess compliance with the technical screening criteria, the Group only assessed the Taxonomy eligibility of the exposure.
For the Minimum Safeguards assessment, the Group relied on information disclosed by its customers in their Taxonomy disclosures.
The Group is working on integrating enhanced data collection processes into its credit assessment processes, ensuring that in future periods, eligibility and alignment with the EU Taxonomy can be assessed at the financing approval stage.
Household Financing
To calculate the Green Asset Ratio, the Group classified its residential mortgage portfolio (secured by residential properties and granted to households) as Taxonomy-eligible. It then assessed Taxonomy alignment by verifying compliance with the criteria outlined in section 7.7 (Acquisition and Ownership of Buildings) of the technical screening criteria for climate change mitigation, as set out in Annex I to Regulation 2021/2139.
This assessment was conducted in line with requirements set forth in sections 1.2.1.3 of Annex V to Commission delegated regulation (EU) 2021/2178 regarding retail clients. The assessment covered compliance with: substantial contribution criteria for climate change mitigation, and Do No Significant Harm (DNSH) criteria, however, it did not cover – as set forth in the afore- mentioned sections – minimum safeguards..
The Group disclosures regarding retail clients include mortgage-backed loans for residential real estate; loans financing purchase of goods and services e.g. electric vehicles or photovoltaic panels are not considered. Therefore, the Group did not obtain relevant documents confirming that producers of goods and services purchased by the Group’s retail clients adhere to specific technical qualification criteria and minimum safeguards.
For residential properties built before 31 December 2020, the Group examined whether the property fell within the top 15% most energy-efficient buildings in the country or region, based on primary energy demand (PED). This was assessed using a communication from the Ministry of Development and Technology 31 , which defines eligible buildings as those with primary energy demand below the thresholds outlined in Table 1 32 of its communication. To determine primary energy demand, the Group used: Energy Performance Certificates, and data from the Central Register of Building Energy Performance, maintained by the Minister of Development and Technology.
For properties built after 31 December 2020, the Group assessed whether the building’s primary energy demand was at least 10% lower than the threshold set for nearly zero-energy buildings in accordance with the Regulation of the Minister of Infrastructure (12 April 2002) on building technical requirements and their locations. This regulation sets maximum primary energy demand limits separately for multi-family and single-family buildings, as well as specific energy use thresholds for heating, ventilation, domestic hot water, and cooling. Given this, the Group’s assessment was based on partial energy demand values stated in the Energy Performance Certificate. Exposures from agreements for which the Group did not hold certificates were disclosed as Taxonomy-eligible but not Taxonomy-aligned.
31 https://www.gov.pl/web/rozwoj-technologia/Taksonomia-zrownowazonego-finansowania-inwestycji-budynki
32 Communication from the Ministry of Development and Technology: Table 1 Energy demand values corresponding to the 15% most energy-efficient buildings.
174
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Bank Pekao S.A.
For properties classified as meeting the substantial contribution criteria, the Group conducted an additional DNSH assessment, evaluating exposure to physical risks such as floods and landslides. This assessment followed an internally developed methodology, considering factors such as: property location, year of construction, floor level, and building type. Properties were deemed DNSH-compliant if the analysis found no significant exposure to physical risks or if the risk level was deemed low based on the adopted methodology. As of 31 December 2024, the Group did not identify any financing in its credit portfolio granted to households for building renovation or the purchase of motor vehicles.
Financing of Local Government Units
To support key performance indicator disclosures, the Group conducted a review of its exposure to local government units, identifying use-of-proceeds financing that contributes to the Green Asset Ratio.
Based on the purpose of financing, the Group identified Taxonomy-eligible loans for local governments and conducted an additional Taxonomy alignment assessment. This assessment considered compliance with substantial contribution criteria, and Do No Significant Harm (DNSH) criteria.
To ensure consistent and accurate evaluations, the Group developed internal assessment guidelines covering the most common types of financing provided to local government entities. Due to limited access to supporting data and documentation, the Group did not classify these financings as Taxonomy-aligned but instead disclosed them as Taxonomy-eligible exposures.
The Group is continuing its efforts to enhance credit processes, which will enable the collection of comprehensive data at the financing approval stage to better assess Taxonomy eligibility and alignment in the future.
As of 31 December 2024, the Group did not identify any financing in its credit portfolio related to public housing projects for local government entities.
Following Commission Notice C/2024/6691 33 , the Group has changed its approach to the presentation of exposures to local governments for which the purpose of the proceeds is unknown. Such financing has been excluded from the numerator of key performance indicators and unlike the approach used in the Group's disclosure for 2023, it has been included in the denominator of key performance indicators denominator of key performance indicators.
Key Performance Indicator Disclosures in Line with Annex VI to Regulation 2021/2178
Below, the Group presents its key performance indicator disclosures in accordance with the mandatory disclosure framework for 2024, as outlined in Templates 1-5 of Annex VI to Regulation 2021/2178. Following section 1.1.1 of Annex V to Regulation 2021/2178, the disclosures are provided on a consolidated basis, reflecting the prudential consolidation scope of the Group. The total assets value reported in the disclosures is equal to the gross carrying amount of total assets as of 31 December 2024.
33 Commission Notice on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of the EU Taxonomy Regulation on the reporting of Taxonomy-eligible and Taxonomy-aligned economic activities and assets (third Commission Notice)
175
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Disclosures Based on the Counterparty’s Key Performance Indicator for Turnover (KPI Turnover)
Template 0: Summary of Key Performance Indicators to Be Disclosed by Credit Institutions in Accordance with Article 8 of the Taxonomy Regulation [EUR million]
Total environmentally sustainable assets
Key Performance Indicator KPI - Turnover
Key Performance Indicator KPI - Capex
% coverage (over total assets)***
% of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of Annex V)
% of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4 of Annex V)
Main KPI
Green asset ratio (GAR) stock
2 092
0,88%
1,34%
69,62%
40,09%
30,38%
Total environmentally sustainable activities
Key Performance Indicator KPI - Turnover
Key Performance Indicator KPI - Capex
% coverage (over total assets)
% of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of Annex V)
% of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4 of Annex V)
Additional KPIs
GAR (flow)
609
0,74%
1,51%
83,02%
55,54%
16,98%
Financial guarantees
48
0,15%
0,75%
Assets under management
114
2,77%
15,97%
176
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 1: Assets for Green Asset Ratio Calculation Part 1 [PLN million]
a
b
c
d
e
f
g
h
i
j
k
l
m
n
31.12.2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy- aligned)
Of which environmentally sustainable (Taxonomy-aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
100 499
63 935
2 052
0
2
390
60
41
0
28
0
0
0
0
2
Financial undertakings
1 111
157
4
0
2
1
1
0
0
0
0
0
0
0
3
Credit institutions
1 110
157
4
0
2
1
1
0
0
0
0
0
0
0
4
Loans and advances
1 110
157
4
0
2
1
1
0
0
0
0
0
0
0
5
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6
Equity instruments
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8
of which investment firms
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
0
0
0
0
0
13
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
0
0
14
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15
Equity instruments
0
0
0
0
0
0
0
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
0
0
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
0
0
0
0
0
0
20
Non-financial undertakings
8 817
1 459
519
0
0
388
59
41
0
27
0
0
0
0
21
Loans and advances
7 429
1 059
325
0
0
224
29
12
0
12
0
0
0
0
22
Debt securities, including UoP
1 365
386
187
0
0
161
30
28
0
15
0
0
0
0
23
Equity instruments
23
14
7
0
0
3
0
0
0
0
0
0
0
0
24
Households
88 912
61 233
1 528
0
0
0
0
0
0
0
0
0
0
0
25
of which loans collateralised by residential immovable property
61 236
61 233
1 528
0
0
0
0
0
0
0
0
0
0
0
177
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
b
c
d
e
f
g
h
i
j
k
l
m
n
31.12.2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy- aligned)
Of which environmentally sustainable (Taxonomy-aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
26
of which building renovation loans
0
0
0
0
0
0
0
0
0
0
0
0
0
0
27
of which motor vehicle loans
0
0
0
0
0
0
0
0
0
0
0
0
0
0
28
Local governments financing
1 659
1 087
0
0
0
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30
Other local government financing
1 659
1 087
0
0
0
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and commercial immovable properties
0
0
0
0
0
0
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
136 456
33
Financial and Non-financial undertakings
87 797
34
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
86 675
35
Loans and advances
77 835
36
of which loans collateralised by commercial immovable property
22 019
37
of which building renovation loans
0
38
Debt securities
8 407
39
Equity instruments
434
40
Non-EU country counterparties not subject to NFRD disclosure obligations
1 122
41
Loans and advances
741
42
Debt securities
109
43
Equity instruments
272
44
Derivatives
448
45
On demand interbank loans
493
46
Cash and cash-related assets
4 461
178
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
b
c
d
e
f
g
h
i
j
k
l
m
n
31.12.2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy- aligned)
Of which environmentally sustainable (Taxonomy-aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
47
Other categories of assets (e.g. Goodwill, commodities etc.)
43 257
48
Total GAR assets
236 955
63 935
2 052
0
2
390
60
41
0
28
0
0
0
0
49
Assets not covered for GAR calculation
103 416
50
Central governments and Supranational issuers
64 146
51
Central banks exposure
33 632
52
Trading book
5 639
53
Total assets
340 371
63 935
2 052
0
2
390
60
41
0
28
0
0
0
0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
31 701
49
48
0
0
41
0
0
0
0
0
0
0
0
55
Assets under management
4 114
358
70
0
0
45
272
44
0
4
0
0
0
0
56
Of which debt securities
2 202
60
2
0
0
0
61
0
0
0
0
0
0
0
57
Of which equity instruments
1 912
297
68
0
0
45
210
44
0
4
0
0
0
0
179
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 1: Assets for Green Asset Ratio Calculation Part 2 [PLN million]
a
g
h
i
j
k
l
m
n
31.12.2024
Circular economy (CE)
Pollution (PPC)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy- aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
100 499
15
0
0
0
0
0
0
0
2
Financial undertakings
1 111
0
0
0
0
0
0
0
0
3
Credit institutions
1 110
0
0
0
0
0
0
0
0
4
Loans and advances
1 110
0
0
0
0
0
0
0
0
5
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
6
Equity instruments
0
0
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
0
0
0
0
0
8
of which investment firms
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
13
Loans and advances
0
0
0
0
0
0
0
0
0
14
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
15
Equity instruments
0
0
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
0
20
Non-financial undertakings
8 817
15
0
0
0
0
0
0
0
21
Loans and advances
7 429
15
0
0
0
0
0
0
0
22
Debt securities, including UoP
1 365
0
0
0
0
0
0
0
0
23
Equity instruments
23
0
0
0
0
0
0
0
0
24
Households
88 912
0
0
0
0
0
0
0
0
25
of which loans collateralised by residential immovable property
61 236
0
0
0
0
0
0
0
0
26
of which building renovation loans
0
0
0
0
0
0
0
0
0
180
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
g
h
i
j
k
l
m
n
31.12.2024
Circular economy (CE)
Pollution (PPC)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy- aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
27
of which motor vehicle loans
0
0
0
0
0
0
0
0
0
28
Local governments financing
1 659
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
30
Other local government financing
1 659
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and commercial immovable properties
0
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
136 456
33
Financial and Non-financial undertakings
87 797
34
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
86 675
35
Loans and advances
77 835
36
of which loans collateralised by commercial immovable property
22 019
37
of which building renovation loans
0
38
Debt securities
8 407
39
Equity instruments
434
40
Non-EU country counterparties not subject to NFRD disclosure obligations
1 122
41
Loans and advances
741
42
Debt securities
109
43
Equity instruments
272
44
Derivatives
448
45
On demand interbank loans
493
46
Cash and cash-related assets
4 461
47
Other categories of assets (e.g. Goodwill, commodities etc.)
43 257
181
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
g
h
i
j
k
l
m
n
31.12.2024
Circular economy (CE)
Pollution (PPC)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy- aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
48
Total GAR assets
236 955
15
0
0
0
0
0
0
0
49
Assets not covered for GAR calculation
103 416
50
Central governments and Supranational issuers
64 146
51
Central banks exposure
33 632
52
Trading book
5 639
53
Total assets
340 371
0
0
0
0
0
0
0
0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
31 701
0
0
0
0
0
0
0
0
55
Assets under management
4 114
52
0
0
0
0
0
0
0
56
Of which debt securities
2 202
40
0
0
0
0
0
0
0
57
Of which equity instruments
1 912
12
0
0
0
0
0
0
0
182
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 1: Assets for Green Asset Ratio Calculation Part 3 [PLN million]
a
w
x
z
aa
ab
ac
ad
ae
af
31.12.2024
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy- aligned)
Of which environmentally sustainable (Taxonomy-aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
100 499
1
0
0
0
64 011
2 092
0
2
417
2
Financial undertakings
1 111
0
0
0
0
157
4
0
2
2
3
Credit institutions
1 110
0
0
0
0
157
4
0
2
2
4
Loans and advances
1 110
0
0
0
0
157
4
0
2
2
5
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
6
Equity instruments
0
0
0
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
0
0
0
0
0
0
8
of which investment firms
0
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
0
13
Loans and advances
0
0
0
0
0
0
0
0
0
0
14
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
15
Equity instruments
0
0
0
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
0
0
20
Non-financial undertakings
8 817
1
0
0
0
1 534
560
0
0
415
21
Loans and advances
7 429
0
0
0
0
1 104
338
0
0
236
22
Debt securities, including UoP
1 365
0
0
0
0
416
215
0
0
176
23
Equity instruments
23
0
0
0
0
15
7
0
0
3
24
Households
88 912
0
0
0
0
61 233
1 528
0
0
0
25
of which loans collateralised by residential immovable property
61 236
0
0
0
0
61 233
1 528
0
0
0
26
of which building renovation loans
0
0
0
0
0
0
0
0
0
0
183
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
w
x
z
aa
ab
ac
ad
ae
af
31.12.2024
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy- aligned)
Of which environmentally sustainable (Taxonomy-aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
27
of which motor vehicle loans
0
0
0
0
0
0
0
0
0
0
28
Local governments financing
1 659
0
0
0
0
1 087
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
0
30
Other local government financing
1 659
0
0
0
0
1 087
0
0
0
0
31
Collateral obtained by taking possession: residential and commercial immovable properties
0
0
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
136 456
33
Financial and Non-financial undertakings
87 797
34
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
86 675
35
Loans and advances
77 835
36
of which loans collateralised by commercial immovable property
22 019
37
of which building renovation loans
0
38
Debt securities
8 407
39
Equity instruments
434
40
Non-EU country counterparties not subject to NFRD disclosure obligations
1 122
41
Loans and advances
741
42
Debt securities
109
43
Equity instruments
272
44
Derivatives
448
45
On demand interbank loans
493
46
Cash and cash-related assets
4 461
184
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
w
x
z
aa
ab
ac
ad
ae
af
31.12.2024
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy- aligned)
Of which environmentally sustainable (Taxonomy-aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
47
Other categories of assets (e.g. Goodwill, commodities etc.)
43 257
48
Total GAR assets
236 955
1
0
0
0
64 011
2 092
0
2
417
49
Assets not covered for GAR calculation
103 416
50
Central governments and Supranational issuers
64 146
51
Central banks exposure
33 632
52
Trading book
5 639
53
Total assets
340 371
0
0
0
0
64 011
2 092
0
2
417
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
31 701
0
0
0
0
49
48
0
0
41
55
Assets under management
4 114
0
0
0
0
682
114
0
40
49
56
Of which debt securities
2 202
0
0
0
0
162
2
0
0
0
57
Of which equity instruments
1 912
0
0
0
0
520
112
0
40
49
185
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 1: Assets for Green Asset Ratio Calculation Part 4 [PLN million]
ag
ah
ai
aj
ak
al.
am
an
ao
ap
aq
ar
as
at
au
31.12.2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy- eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
96 194
60 480
1 007
0
11
196
2 469
23
0
22
60 480
1 030
0
12
219
2
Financial undertakings
949
147
0
0
0
0
147
0
0
0
147
0
0
0
0
3
Credit institutions
949
147
0
0
0
0
147
0
0
0
147
0
0
0
0
4
Loans and advances
949
147
0
0
0
0
147
0
0
0
147
0
0
0
0
5
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6
Equity instruments
0
0
0
0
0
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8
of which investment firms
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
13
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
14
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15
Equity instruments
0
0
0
0
0
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
0
0
0
0
20
Non-financial undertakings
9 064
1 225
350
0
11
196
1 225
23
0
22
1 225
373
0
12
219
21
Loans and advances
7 582
1 067
230
0
11
112
1 067
22
0
22
1 067
251
0
11
134
22
Debt securities, including UoP
1 473
153
120
0
0
83
153
0
0
0
153
120
0
0
83
23
Equity instruments
9
6
1
0
1
6
1
1
6
2
1
1
24
Households
84 634
58 011
657
0
0
0
0
0
0
0
58 011
657
0
0
0
25
of which loans collateralised by residential immovable property
58 015
58 011
657
0
0
0
0
0
0
0
58 011
657
0
0
0
26
of which building renovation loans
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
27
of which motor vehicle loans
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
186
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
ag
ah
ai
aj
ak
al.
am
an
ao
ap
aq
ar
as
at
au
31.12.2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy- eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
28
Local governments financing
1 547
1 097
0
0
0
0
1 097
0
0
0
1 097
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30
Other local government financing
1 547
1 097
0
0
0
0
1 097
0
0
0
1 097
0
0
0
0
31
Collateral obtained by taking possession: residential and commercial immovable properties
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
33
Financial and Non-financial undertakings
34
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
35
Loans and advances
36
of which loans collateralised by commercial immovable property
37
of which building renovation loans
38
Debt securities
39
Equity instruments
40
Non-EU country counterparties not subject to NFRD disclosure obligations
41
Loans and advances
42
Debt securities
43
Equity instruments
44
Derivatives
45
On demand interbank loans
46
Cash and cash-related assets
47
Other categories of assets (e.g. Goodwill, commodities etc.)
187
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
ag
ah
ai
aj
ak
al.
am
an
ao
ap
aq
ar
as
at
au
31.12.2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy- eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
48
Total GAR assets
217 274
60 480
1 007
0
11
196
2 469
23
0
22
60 480
1 030
0
12
219
49
Assets not covered for GAR calculation
50
Central governments and Supranational issuers
51
Central banks exposure
52
Trading book
53
Total assets
313 976
60 480
1 007
0
11
196
2 469
23
0
22
60 480
1 030
0
12
219
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
30 727
0
0
0
0
0
0
0
0
0
0
0
0
0
0
55
Assets under management
1 699
166
48
0
0
25
142
5
0
0
308
54
0
5
25
56
Of which debt securities
8
0
0
0
0
0
0
0
0
0
0
0
0
0
0
57
Of which equity instruments
1 691
166
48
0
0
25
142
5
0
0
169
0
0
1
25
188
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 2: Sectoral Information on the Green Asset Ratio Part 1 [PLN million]
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Circular economy (CE)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Breakdown by sector - NACE 4 digits level (code and label)
Mn PLN
Of which environmentally sustainable (CCM)
Mn PLN
Of which environmentally sustainable (CCM)
Mn PLN
Of which environmentally sustainable (CCA)
Mn PLN
Of which environmentally sustainable (CCA)
Mn PLN
Of which environmentally sustainable (WMR)
Mn PLN
Of which environmentally sustainable (WMR)
Mn PLN
Of which environmentally sustainable (CE)
Mn PLN
Of which environmentally sustainable (CE)
1
B05.10
270
0
270
0
270
0
270
0
2
B07.29
1 720
15
1 720
0
1 720
0
1 720
0
3
C10.11
68
0
68
0
68
0
68
0
4
C10.13
17
0
17
0
17
0
17
0
5
C11.05
0
0
0
0
0
0
0
0
6
C15.20
0
0
0
0
0
0
0
0
7
C16.10
13
0
13
0
13
0
13
0
8
C17.12
20
0
20
0
20
0
20
0
9
C19.20
695
13
695
0
695
0
695
0
10
C20.15
481
2
481
0
481
0
481
0
11
C20.16
0
0
0
0
0
0
0
0
12
C20.30
35
0
35
0
35
0
35
0
13
C20.42
0
0
0
0
0
0
0
0
14
C22.11
4
0
4
0
4
0
4
0
15
C23.20
18
0
18
0
18
0
18
0
16
C24.42
115
35
115
0
115
0
115
0
17
C25.93
42
0
42
0
42
0
42
0
18
C27.12
5
1
5
0
5
0
5
0
19
C28.41
0
0
0
0
0
0
0
0
20
C28.92
180
46
180
0
180
0
180
0
21
C29.20
0
0
0
0
0
0
0
0
22
C33.20
9
0
9
0
9
0
9
0
23
D35.11
816
114
816
0
816
0
816
0
24
D35.14
1 209
43
1 209
0
1 209
0
1 209
0
25
D35.30
0
0
0
0
0
0
0
0
189
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Circular economy (CE)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Breakdown by sector - NACE 4 digits level (code and label)
Mn PLN
Of which environmentally sustainable (CCM)
Mn PLN
Of which environmentally sustainable (CCM)
Mn PLN
Of which environmentally sustainable (CCA)
Mn PLN
Of which environmentally sustainable (CCA)
Mn PLN
Of which environmentally sustainable (WMR)
Mn PLN
Of which environmentally sustainable (WMR)
Mn PLN
Of which environmentally sustainable (CE)
Mn PLN
Of which environmentally sustainable (CE)
26
F41.10
22
5
22
0
22
0
22
0
27
F41.20
20
1
20
0
20
0
20
0
28
F42.11
4
0
4
0
4
0
4
0
29
F42.12
8
0
8
0
8
0
8
0
30
F43.39
16
1
16
0
16
0
16
0
31
F43.99
0
0
0
0
0
0
0
0
32
G45.31
612
0
612
0
612
0
612
0
33
G46.32
2
0
2
0
2
0
2
0
34
G46.46
296
0
296
0
296
0
296
0
35
G46.72
3
0
3
0
3
0
3
0
36
G46.90
191
0
191
0
191
0
191
0
37
G47.11
190
0
190
0
190
0
190
0
38
G47.41
5
0
5
0
5
0
5
0
39
G47.71
271
0
271
0
271
0
271
0
40
G47.72
1
0
1
0
1
0
1
0
41
G47.91
1
0
1
0
1
0
1
0
42
H49.20
242
61
242
0
242
0
242
0
43
H53.20
76
28
76
0
76
0
76
0
44
I56.10
320
0
320
0
320
0
320
0
45
J61.10
0
0
0
0
0
0
0
0
46
J61.30
208
7
208
27
208
0
208
0
47
J62.01
1
0
1
0
1
0
1
0
48
J63.12
3
0
3
0
3
0
3
0
49
K64.20
392
142
392
13
392
0
392
0
50
M70.10
68
4
68
0
68
0
68
0
51
M72.11
109
0
109
0
109
0
109
0
190
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Circular economy (CE)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Breakdown by sector - NACE 4 digits level (code and label)
Mn PLN
Of which environmentally sustainable (CCM)
Mn PLN
Of which environmentally sustainable (CCM)
Mn PLN
Of which environmentally sustainable (CCA)
Mn PLN
Of which environmentally sustainable (CCA)
Mn PLN
Of which environmentally sustainable (WMR)
Mn PLN
Of which environmentally sustainable (WMR)
Mn PLN
Of which environmentally sustainable (CE)
Mn PLN
Of which environmentally sustainable (CE)
52
N77.40
0
0
0
0
0
0
0
0
53
N82.91
16
0
16
0
16
0
16
0
54
Q86.22
17
0
17
0
17
0
17
0
55
S96.09
0
0
0
0
0
0
0
0
191
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 2: Sectoral Information on the Green Asset Ratio Part 2 [PLN million]
q
r
s
t
u
v
w
x
y
z
aa
ab
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Breakdown by sector - NACE 4 digits level (code and label)
Mn PLN
Of which environmentally sustainable (PPC)
Mn PLN
Of which environmentally sustainable (PPC)
Mn PLN
Of which environmentally sustainable (BIO)
Mn PLN
Of which environmentally sustainable (BIO)
Mn PLN
Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO)
Mn PLN
Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO)
1
B05.10
270
0
270
0
270
0
2
B07.29
1 720
0
1 720
0
1 720
15
3
C10.11
68
0
68
0
68
0
4
C10.13
17
0
17
0
17
0
5
C11.05
0
0
0
0
0
0
6
C15.20
0
0
0
0
0
0
7
C16.10
13
0
13
0
13
0
8
C17.12
20
0
20
0
20
0
9
C19.20
695
0
695
0
695
13
10
C20.15
481
0
481
0
481
2
11
C20.16
0
0
0
0
0
0
12
C20.30
35
0
35
0
35
0
13
C20.42
0
0
0
0
0
0
14
C22.11
4
0
4
0
4
0
15
C23.20
18
0
18
0
18
0
16
C24.42
115
0
115
0
115
35
17
C25.93
42
0
42
0
42
0
18
C27.12
5
0
5
0
5
1
19
C28.41
0
0
0
0
0
0
20
C28.92
180
0
180
0
180
46
21
C29.20
0
0
0
0
0
0
22
C33.20
9
0
9
0
9
0
23
D35.11
816
0
816
0
816
114
24
D35.14
1 209
0
1 209
0
1 209
43
25
D35.30
0
0
0
0
0
0
26
F41.10
22
0
22
0
22
5
192
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
q
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u
v
w
x
y
z
aa
ab
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Breakdown by sector - NACE 4 digits level (code and label)
Mn PLN
Of which environmentally sustainable (PPC)
Mn PLN
Of which environmentally sustainable (PPC)
Mn PLN
Of which environmentally sustainable (BIO)
Mn PLN
Of which environmentally sustainable (BIO)
Mn PLN
Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO)
Mn PLN
Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO)
27
F41.20
20
0
20
0
20
1
28
F42.11
4
0
4
0
4
0
29
F42.12
8
0
8
0
8
0
30
F43.39
16
0
16
0
16
1
31
F43.99
0
0
0
0
0
0
32
G45.31
612
0
612
0
612
0
33
G46.32
2
0
2
0
2
0
34
G46.46
296
0
296
0
296
0
35
G46.72
3
0
3
0
3
0
36
G46.90
191
0
191
0
191
0
37
G47.11
190
0
190
0
190
0
38
G47.41
5
0
5
0
5
0
39
G47.71
271
0
271
0
271
0
40
G47.72
1
0
1
0
1
0
41
G47.91
1
0
1
0
1
0
42
H49.20
242
0
242
0
242
61
43
H53.20
76
0
76
0
76
28
44
I56.10
320
0
320
0
320
0
45
J61.10
0
0
0
0
0
0
46
J61.30
208
0
208
0
208
34
47
J62.01
1
0
1
0
1
0
48
J63.12
3
0
3
0
3
0
49
K64.20
392
0
392
0
392
155
50
M70.10
68
0
68
0
68
4
51
M72.11
109
0
109
0
109
0
52
N77.40
0
0
0
0
0
0
53
N82.91
16
0
16
0
16
0
193
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
q
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v
w
x
y
z
aa
ab
Pollution (PPC)
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
Non-Financial corporates (Subject to NFRD)
SMEs and other NFC not subject
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
[Gross] carrying amount
Breakdown by sector - NACE 4 digits level (code and label)
Mn PLN
Of which environmentally sustainable (PPC)
Mn PLN
Of which environmentally sustainable (PPC)
Mn PLN
Of which environmentally sustainable (BIO)
Mn PLN
Of which environmentally sustainable (BIO)
Mn PLN
Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO)
Mn PLN
Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO)
54
Q86.22
17
0
17
0
17
0
55
S96.09
0
0
0
0
0
0
194
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 3: Key Performance Indicator for the Green Asset Ratio in Relation to Stock Part 1 [%]
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to total covered assets in the denominator)
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
26,98%
0,87%
0,00%
0,00%
0,16%
0,03%
0,02%
0,00%
0,01%
0,00%
0,00%
0,00%
0,00%
2
Financial undertakings
0,07%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
3
Credit institutions
0,07%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
4
Loans and advances
0,07%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
5
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
6
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
7
Other financial corporations
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
8
of which investment firms
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
9
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
10
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
11
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
12
of which management companies
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
13
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
14
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
15
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
16
of which insurance undertakings
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
17
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
18
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
19
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
20
Non-financial undertakings
0,62%
0,22%
0,00%
0,00%
0,16%
0,02%
0,02%
0,00%
0,01%
0,00%
0,00%
0,00%
0,00%
21
Loans and advances
0,45%
0,14%
0,00%
0,00%
0,09%
0,01%
0,01%
0,00%
0,01%
0,00%
0,00%
0,00%
0,00%
22
Debt securities, including UoP
0,16%
0,08%
0,00%
0,00%
0,07%
0,01%
0,01%
0,00%
0,01%
0,00%
0,00%
0,00%
0,00%
195
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to total covered assets in the denominator)
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
23
Equity instruments
0,01%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
24
Households
25,84%
0,64%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
25
of which loans collateralised by residential immovable property
25,84%
0,64%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
26
of which building renovation loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
27
of which motor vehicle loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
28
Local governments financing
0,46%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
29
Housing financing
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
30
Other local government financing
0,46%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
31
Collateral obtained by taking possession: residential and commercial immovable properties
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
32
Total GAR assets
26,98%
0,87%
0,00%
0,00%
0,16%
0,03%
0,02%
0,00%
0,01%
0,00%
0,00%
0,00%
0,00%
196
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 3: Key Performance Indicator for the Green Asset Ratio in Relation to Stock Part 2 [%]
n
o
p
q
r
s
t
u
31.12.2024
Circular economy (CE)
Pollution (PPC)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to total covered assets in the denominator)
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
0,01%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
2
Financial undertakings
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
3
Credit institutions
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
4
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
5
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
6
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
7
Other financial corporations
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
8
of which investment firms
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
9
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
10
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
11
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
12
of which management companies
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
13
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
14
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
15
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
16
of which insurance undertakings
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
17
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
18
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
19
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
20
Non-financial undertakings
0,01%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
21
Loans and advances
0,01%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
22
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
197
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
n
o
p
q
r
s
t
u
31.12.2024
Circular economy (CE)
Pollution (PPC)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to total covered assets in the denominator)
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
23
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
24
Households
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
25
of which loans collateralised by residential immovable property
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
26
of which building renovation loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
27
of which motor vehicle loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
28
Local governments financing
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
29
Housing financing
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
30
Other local government financing
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
31
Collateral obtained by taking possession: residential and commercial immovable properties
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
32
Total GAR assets
0,01%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
198
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 3: Key Performance Indicator for the Green Asset Ratio in Relation to Stock Part 3 [%]
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2024
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to total covered assets in the denominator)
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
Proportion of total assets covered
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
0,00%
0,00%
0,00%
0,00%
27,01%
0,88%
0,00%
0,00%
0,18%
29,53%
2
Financial undertakings
0,00%
0,00%
0,00%
0,00%
0,07%
0,00%
0,00%
0,00%
0,00%
0,33%
3
Credit institutions
0,00%
0,00%
0,00%
0,00%
0,07%
0,00%
0,00%
0,00%
0,00%
0,33%
4
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,07%
0,00%
0,00%
0,00%
0,00%
0,33%
5
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
6
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
7
Other financial corporations
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
8
of which investment firms
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
9
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
10
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
11
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
12
of which management companies
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
13
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
14
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
15
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
16
of which insurance undertakings
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
17
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
18
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
19
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
20
Non-financial undertakings
0,00%
0,00%
0,00%
0,00%
0,65%
0,24%
0,00%
0,00%
0,18%
2,59%
21
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,47%
0,14%
0,00%
0,00%
0,10%
2,18%
22
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,18%
0,09%
0,00%
0,00%
0,07%
0,40%
199
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
v
w
x
z
aa
ab
ac
ad
ae
af
31.12.2024
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to total covered assets in the denominator)
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
Proportion of total assets covered
23
Equity instruments
0,00%
0,00%
0,00%
0,01%
0,00%
0,00%
0,00%
0,01%
24
Households
0,00%
0,00%
0,00%
0,00%
25,84%
0,64%
0,00%
0,00%
0,00%
26,12%
25
of which loans collateralised by residential immovable property
0,00%
0,00%
0,00%
0,00%
25,84%
0,64%
0,00%
0,00%
0,00%
17,99%
26
of which building renovation loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
27
of which motor vehicle loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
28
Local governments financing
0,00%
0,00%
0,00%
0,00%
0,46%
0,00%
0,00%
0,00%
0,00%
0,49%
29
Housing financing
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
30
Other local government financing
0,00%
0,00%
0,00%
0,00%
0,46%
0,00%
0,00%
0,00%
0,00%
0,49%
31
Collateral obtained by taking possession: residential and commercial immovable properties
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
32
Total GAR assets
0,00%
0,00%
0,00%
0,00%
27,01%
0,88%
0,00%
0,00%
0,18%
69,62%
200
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 3: Key Performance Indicator for the Green Asset Ratio in Relation to Stock Part 4 [%]
ag
ah
ai
aj
ak
al.
am
an
ao
j
k
l
m
n
o
31.12.2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to total covered assets in the denominator)
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
Proportion of total assets covered
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
28,37%
0,46%
0,00%
0,01%
0,09%
1,13%
0,01%
0,00%
0,01%
28,37%
0,47%
0,00%
0,01%
0,10%
31,00%
2
Financial undertakings
0,07%
0,00%
0,00%
0,00%
0,00%
0,07%
0,00%
0,00%
0,00%
0,07%
0,00%
0,00%
0,00%
0,00%
0,30%
3
Credit institutions
0,07%
0,00%
0,00%
0,00%
0,00%
0,07%
0,00%
0,00%
0,00%
0,07%
0,00%
0,00%
0,00%
0,00%
0,30%
4
Loans and advances
0,07%
0,00%
0,00%
0,00%
0,00%
0,07%
0,00%
0,00%
0,00%
0,07%
0,00%
0,00%
0,00%
0,00%
0,30%
5
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
6
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
7
Other financial corporations
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
8
of which investment firms
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
9
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
10
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
11
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
12
of which management companies
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
13
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
14
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
15
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
16
of which insurance undertakings
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
17
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
18
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
19
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
20
Non-financial undertakings
0,56%
0,16%
0,00%
0,01%
0,09%
0,56%
0,01%
0,00%
0,01%
0,56%
0,17%
0,00%
0,01%
0,10%
2,87%
21
Loans and advances
0,49%
0,10%
0,00%
0,00%
0,05%
0,49%
0,01%
0,00%
0,01%
0,49%
0,11%
0,00%
0,00%
0,06%
2,40%
201
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
ag
ah
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am
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k
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m
n
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31.12.2023
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
TOTAL (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to total covered assets in the denominator)
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
Proportion of total assets covered
22
Debt securities, including UoP
0,07%
0,05%
0,00%
0,00%
0,04%
0,07%
0,00%
0,00%
0,00%
0,07%
0,05%
0,00%
0,00%
0,04%
0,47%
23
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
24
Households
27,24%
0,30%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
27,24%
0,30%
0,00%
0,00%
0,00%
27,34%
25
of which loans collateralised by residential immovable property
27,24%
0,30%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
27,24%
0,30%
0,00%
0,00%
0,00%
18,90%
26
of which building renovation loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
27
of which motor vehicle loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
28
Local governments financing
0,50%
0,00%
0,00%
0,00%
0,00%
0,50%
0,00%
0,00%
0,00%
0,50%
0,00%
0,00%
0,00%
0,00%
0,49%
29
Housing financing
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
30
Other local government financing
0,50%
0,00%
0,00%
0,00%
0,00%
0,50%
0,00%
0,00%
0,00%
0,50%
0,00%
0,00%
0,00%
0,00%
0,49%
31
Collateral obtained by taking possession: residential and commercial immovable properties
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
32
Total GAR assets
28,37%
0,46%
0,00%
0,01%
0,09%
1,13%
0,01%
0,00%
0,01%
28,37%
0,47%
0,00%
0,01%
0,10%
69,36%
202
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 4: Key Performance Indicator for the Green Asset Ratio in Relation to Flow Part 1 [%]
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to flow of total eligible assets)
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
10,00%
0,72%
0,00%
0,00%
0,21%
0,03%
0,02%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
2
Financial undertakings
0,19%
0,01%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
3
Credit institutions
0,19%
0,01%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
4
Loans and advances
0,19%
0,01%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
5
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
6
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
7
Other financial corporations
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
8
of which investment firms
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
9
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
10
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
11
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
12
of which management companies
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
13
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
14
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
15
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
16
of which insurance undertakings
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
17
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
18
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
19
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
20
Non-financial undertakings
0,50%
0,26%
0,00%
0,00%
0,21%
0,03%
0,02%
0,00%
0,00%
0,00%
0,00%
0,00%
21
Loans and advances
0,41%
0,24%
0,00%
0,00%
0,21%
0,01%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
203
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to flow of total eligible assets)
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
22
Debt securities, including UoP
0,07%
0,01%
0,00%
0,00%
0,00%
0,02%
0,02%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
23
Equity instruments
0,02%
0,01%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
24
Households
8,92%
0,46%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
25
of which loans collateralised by residential immovable property
8,30%
0,46%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
26
of which building renovation loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
27
of which motor vehicle loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
28
Local governments financing
0,38%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
29
Housing financing
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
30
Other local government financing
0,38%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
31
Collateral obtained by taking possession: residential and commercial immovable properties
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
32
Total GAR assets
10,00%
0,72%
0,00%
0,00%
0,21%
0,03%
0,02%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
204
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 4: Key Performance Indicator for the Green Asset Ratio in Relation to Flow Part 2 [%]
n
o
p
q
r
s
t
u
31.12.2024
Circular economy (CE)
Pollution (PPC)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to flow of total eligible assets)
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
0,02%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
2
Financial undertakings
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
3
Credit institutions
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
4
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
5
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
6
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
7
Other financial corporations
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
8
of which investment firms
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
9
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
10
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
11
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
12
of which management companies
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
13
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
14
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
15
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
16
of which insurance undertakings
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
17
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
18
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
19
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
20
Non-financial undertakings
0,02%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
21
Loans and advances
0,02%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
205
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
n
o
p
q
r
s
t
u
31.12.2024
Circular economy (CE)
Pollution (PPC)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to flow of total eligible assets)
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
22
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
23
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
24
Households
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
25
of which loans collateralised by residential immovable property
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
26
of which building renovation loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
27
of which motor vehicle loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
28
Local governments financing
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
29
Housing financing
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
30
Other local government financing
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
31
Collateral obtained by taking possession: residential and commercial immovable properties
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
32
Total GAR assets
0,02%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
206
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 4: Key Performance Indicator for the Green Asset Ratio in Relation to Flow Part 3[%]
v
w
x
y
z
aa
ab
ac
ad
ae
31.12.2024
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WMR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to flow of total eligible assets)
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
Proportion of total new assets covered
GAR - Covered assets in both numerator and denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
0,00%
0,00%
0,00%
0,00%
10,04%
0,74%
0,00%
0,00%
0,21%
27,49%
2
Financial undertakings
0,00%
0,00%
0,00%
0,00%
0,19%
0,01%
0,00%
0,00%
0,00%
0,75%
3
Credit institutions
0,00%
0,00%
0,00%
0,00%
0,19%
0,01%
0,00%
0,00%
0,00%
0,75%
4
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,19%
0,01%
0,00%
0,00%
0,00%
0,75%
5
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
6
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
7
Other financial corporations
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
8
of which investment firms
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
9
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
10
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
11
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
12
of which management companies
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
13
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
14
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
15
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
16
of which insurance undertakings
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
17
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
18
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
19
Equity instruments
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
20
Non-financial undertakings
0,00%
0,00%
0,00%
0,00%
0,55%
0,27%
0,00%
0,00%
0,21%
3,81%
21
Loans and advances
0,00%
0,00%
0,00%
0,00%
0,44%
0,24%
0,00%
0,00%
0,21%
3,16%
207
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
v
w
x
y
z
aa
ab
ac
ad
ae
31.12.2024
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WMR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to flow of total eligible assets)
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
Proportion of total new assets covered
22
Debt securities, including UoP
0,00%
0,00%
0,00%
0,00%
0,09%
0,02%
0,00%
0,00%
0,00%
0,63%
23
Equity instruments
0,00%
0,00%
0,00%
0,02%
0,01%
0,00%
0,00%
0,02%
24
Households
0,00%
0,00%
0,00%
0,00%
8,92%
0,46%
0,00%
0,00%
0,00%
22,29%
25
of which loans collateralised by residential immovable property
0,00%
0,00%
0,00%
0,00%
8,30%
0,46%
0,00%
0,00%
0,00%
6,89%
26
of which building renovation loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
27
of which motor vehicle loans
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
28
Local governments financing
0,00%
0,00%
0,00%
0,00%
0,38%
0,00%
0,00%
0,00%
0,00%
0,63%
29
Housing financing
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
30
Other local government financing
0,00%
0,00%
0,00%
0,00%
0,38%
0,00%
0,00%
0,00%
0,00%
0,63%
31
Collateral obtained by taking possession: residential and commercial immovable properties
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
32
Total GAR assets
0,00%
0,00%
0,00%
0,00%
10,04%
0,74%
0,00%
0,00%
0,21%
83,02%
208
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 5: Key Performance Indicator for Off-Balance Sheet Exposures in Relation to Stock Part 1 [%]
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)
% (compared to total eligible off-balance sheet assets)
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
1
Financial guarantees (FinGuar KPI)
0,16%
0,15%
0,00%
0,00%
0,13%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
2
Assets under management (AuM KPI)
8,69%
1,71%
0,00%
0,00%
1,10%
6,61%
1,07%
0,00%
0,09%
0,01%
0,00%
0,00%
0,00%
Template 5: Key Performance Indicator for Off-Balance Sheet Exposures in Relation to Stock Part 2 [%]
n
o
p
q
r
s
t
u
31.12.2024
Circular economy (CE)
Pollution (PPC)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)
% (compared to total eligible off-balance sheet assets)
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
1
Financial guarantees (FinGuar KPI)
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
2
Assets under management (AuM KPI)
1,26%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
209
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 5: Key Performance Indicator for Off-Balance Sheet Exposures in Relation to Stock Part 2 [%]
v
w
x
z
aa
ab
ac
ad
ae
31.12.2024
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WMR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to total eligible off-balance sheet assets)
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
1
Financial guarantees (FinGuar KPI)
0,00%
0,00%
0,00%
0,00%
0,16%
0,15%
0,00%
0,00%
0,13%
2
Assets under management (AuM KPI)
0,01%
0,00%
0,00%
0,00%
16,57%
2,77%
0,00%
0,98%
1,19%
Template 5: Key Performance Indicator for Off-Balance Sheet Exposures in Relation to Flow Part 1 [%]
a
b
c
d
e
f
g
h
i
j
k
l
m
31.12.2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy- aligned)
% (compared to total eligible off-balance sheet assets)
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
1
Financial guarantees (FinGuar KPI)
0,27%
0,27%
0,00%
0,00%
0,23%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
2
Assets under management (AuM KPI)
18,17%
6,05%
0,00%
0,00%
3,35%
16,48%
3,66%
0,00%
0,03%
0,00%
0,00%
0,00%
0,00%
210
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 5: Key Performance Indicator for Off-Balance Sheet Exposures in Relation to Flow Part 2 [%]
n
o
p
q
r
s
t
u
31.12.2024
Circular economy (CE)
Pollution (PPC)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to total eligible off-balance sheet assets)
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
1
Financial guarantees (FinGuar KPI)
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
2
Assets under management (AuM KPI)
0,17%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
0,00%
Template 5: Key Performance Indicator for Off-Balance Sheet Exposures in Relation to Flow Part 3 [%]
v
w
x
z
aa
ab
ac
ad
ae
31.12.2024
Biodiversity and Ecosystems (BIO)
TOTAL (CCM + CCA + WMR + CE + PPC + BIO)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned)
% (compared to total eligible off-balance sheet assets)
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which transitional
Of which enabling
1
Financial guarantees (FinGuar KPI)
0,00%
0,00%
0,00%
0,00%
0,27%
0,27%
0,00%
0,00%
0,23%
2
Assets under management (AuM KPI)
0,04%
0,00%
0,00%
0,00%
34,86%
9,71%
0,00%
3,63%
3,38%
211
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Disclosures Based on Counterparty Key Performance Indicator in Relation to Capital Expenditures (KPI Capex)
Template 0: Summary of Key Performance Indicators to Be Disclosed by Credit Institutions in Accordance with Article 8 of the Taxonomy Regulation [PLN million]
Total environmentally sustainable assets
Key Performance Indicator KPI - Turnover
Key Performance Indicator KPI - Capex
% coverage (over total assets)***
% of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of Annex V)
% of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4 of Annex V)
Main KPI
Green asset ratio (GAR) stock
3 173
0,88%
1,34%
69,62%
40,09%
30,38%
Total environmentally sustainable activities
Key Performance Indicator KPI - Turnover
Key Performance Indicator KPI - Capex
% coverage (over total assets)
% of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of Annex V)
% of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4 of Annex V)
Additional KPIs
GAR (flow)
1 250
0,74%
1,51%
83,02%
55,54%
16,98%
Financial guarantees
239
0,15%
0,75%
Assets under management
648
2,77%
15,97%
212
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 1: Assets for Green Asset Ratio Calculation Part 1 [PLN million]
a
b
c
d
e
f
g
h
i
j
j
k
l
m
31.12.2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-aligned)
mln PLN
Całkowita wartość bilansowa [brutto]
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
100 499
65 778
3 147
0
76
1 116
109
26
0
4
2
0
0
0
2
Financial undertakings
1 111
157
8
0
4
2
0
0
0
0
0
0
0
0
3
Credit institutions
1 110
157
8
0
4
2
0
0
0
0
0
0
0
0
4
Loans and advances
1 110
157
8
0
4
2
0
0
0
0
0
0
0
0
5
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6
Equity instruments
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8
of which investment firms
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
0
0
0
0
0
13
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
0
0
14
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15
Equity instruments
0
0
0
0
0
0
0
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
0
0
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
0
0
0
0
0
0
20
Non-financial undertakings
8 817
3 300
1 610
0
73
1 113
109
26
0
3
2
0
0
0
21
Loans and advances
7 429
2 429
1 159
0
70
741
90
9
0
2
2
0
0
0
22
Debt securities, including UoP
1 365
861
442
0
3
367
17
16
0
2
0
0
0
0
23
Equity instruments
23
10
9
0
0
5
2
1
0
0
0
0
0
0
24
Households
88 912
61 233
1 528
0
0
0
0
0
0
0
0
0
0
0
25
of which loans collateralised by residential immovable property
61 236
61 233
1 528
0
0
0
0
0
0
0
0
0
0
0
26
of which building renovation loans
0
0
0
0
0
0
0
0
0
0
0
0
0
0
27
of which motor vehicle loans
0
0
0
0
0
0
0
0
0
0
0
0
0
0
213
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
b
c
d
e
f
g
h
i
j
j
k
l
m
31.12.2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-aligned)
mln PLN
Całkowita wartość bilansowa [brutto]
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
28
Local governments financing
1 659
1 087
0
0
0
0
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30
Other local government financing
1 659
1 087
0
0
0
0
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and commercial immovable properties
0
0
0
0
0
0
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
136 456
33
Financial and Non-financial undertakings
87 797
34
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
86 675
35
Loans and advances
77 835
36
of which loans collateralised by commercial immovable property
22 019
37
of which building renovation loans
0
38
Debt securities
8 407
39
Equity instruments
434
40
Non-EU country counterparties not subject to NFRD disclosure obligations
1 122
41
Loans and advances
741
42
Debt securities
109
43
Equity instruments
272
44
Derivatives
448
45
On demand interbank loans
493
46
Cash and cash-related assets
4 461
47
Other categories of assets (e.g. Goodwill, commodities etc.)
43 257
214
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
b
c
d
e
f
g
h
i
j
j
k
l
m
31.12.2024
Climate Change Mitigation (CCM)
Climate Change Adaptation (CCA)
Water and marine resources (WMR)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-aligned)
Of which environmentally sustainable (Taxonomy-aligned)
mln PLN
Całkowita wartość bilansowa [brutto]
Of which Use of Proceeds
Of which transitional
Of which enabling
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
48
Total GAR assets
236 955
65 778
3 147
0
76
1 116
109
26
0
4
2
0
0
0
49
Assets not covered for GAR calculation
103 416
50
Central governments and Supranational issuers
64 146
51
Central banks exposure
33 632
52
Trading book
5 639
53
Total assets
340 371
65 778
3 147
0
76
1 116
109
26
0
4
2
0
0
0
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54
Financial guarantees
31 701
242
239
0
0
194
0
0
0
0
0
0
0
0
55
Assets under management
4 060
1 529
582
0
97
377
807
66
0
3
3
0
0
0
56
Of which debt securities
1 424
999
397
0
64
276
452
1
0
0
3
0
0
0
57
Of which equity instruments
2 636
530
185
0
33
101
355
65
0
3
0
0
0
0
215
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
Template 1: Assets for Green Asset Ratio Calculation Part 2 [PLN million]
a
o
p
q
r
s
t
u
v
31.12.2024
Circular economy (CE)
Pollution (PPC)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy- aligned)
Of which environmentally sustainable (Taxonomy- aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
GAR - Covered assets in both numerator and
denominator
1
Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation
100 499
18
0
0
0
1
0
0
0
2
Financial undertakings
1 111
0
0
0
0
0
0
0
0
3
Credit institutions
1 110
0
0
0
0
0
0
0
0
4
Loans and advances
1 110
0
0
0
0
0
0
0
0
5
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
6
Equity instruments
0
0
0
0
0
0
0
0
0
7
Other financial corporations
0
0
0
0
0
0
0
0
0
8
of which investment firms
0
0
0
0
0
0
0
0
0
9
Loans and advances
0
0
0
0
0
0
0
0
0
10
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
11
Equity instruments
0
0
0
0
0
0
0
0
0
12
of which management companies
0
0
0
0
0
0
0
0
0
13
Loans and advances
0
0
0
0
0
0
0
0
0
14
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
15
Equity instruments
0
0
0
0
0
0
0
0
0
16
of which insurance undertakings
0
0
0
0
0
0
0
0
0
17
Loans and advances
0
0
0
0
0
0
0
0
0
18
Debt securities, including UoP
0
0
0
0
0
0
0
0
0
19
Equity instruments
0
0
0
0
0
0
0
0
0
20
Non-financial undertakings
8 817
18
0
0
0
1
0
0
0
21
Loans and advances
7 429
17
0
0
0
1
0
0
0
22
Debt securities, including UoP
1 365
0
0
0
0
0
0
0
0
23
Equity instruments
23
0
0
0
0
0
0
0
0
24
Households
88 912
0
0
0
0
0
0
0
0
25
of which loans collateralised by residential immovable property
61 236
0
0
0
0
0
0
0
0
26
of which building renovation loans
0
0
0
0
0
0
0
0
0
216
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
o
p
q
r
s
t
u
v
31.12.2024
Circular economy (CE)
Pollution (PPC)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which towards taxonomy relevant sectors (Taxonomy-eligible)
Of which environmentally sustainable (Taxonomy- aligned)
Of which environmentally sustainable (Taxonomy- aligned)
mln PLN
Total (gross) carrying amount
Of which Use of Proceeds
Of which enabling
Of which Use of Proceeds
Of which enabling
27
of which motor vehicle loans
0
0
0
0
0
0
0
0
0
28
Local governments financing
1 659
0
0
0
0
0
0
0
0
29
Housing financing
0
0
0
0
0
0
0
0
0
30
Other local government financing
1 659
0
0
0
0
0
0
0
0
31
Collateral obtained by taking possession: residential and commercial immovable properties
0
0
0
0
0
0
0
0
0
32
Assets excluded from the numerator for GAR calculation
(covered in the denominator)
136 456
33
Financial and Non-financial undertakings
87 797
34
SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
86 675
35
Loans and advances
77 835
36
of which loans collateralised by commercial immovable property
22 019
37
of which building renovation loans
0
38
Debt securities
8 407
39
Equity instruments
434
40
Non-EU country counterparties not subject to NFRD disclosure obligations
1 122
41
Loans and advances
741
42
Debt securities
109
43
Equity instruments
272
44
Derivatives
448
45
On demand interbank loans
493
46
Cash and cash-related assets
4 461
217
Report on the activities of Bank Pekao S.A. Group for the year 2024 rok
Bank Pekao S.A.
a
o
p
q