Ladies and gentlemen,
The
past
year
was
marked
by
a
gradual
recovery
of
economic
activity
and
improvement
in
customer
sentiment,
which
was
reflected
in
a
strong
improvement
in
Bank
Pekao's
profitability.
The
economic
recovery,
tight
labour
market
and
tensions
in
the
commodity
and
energy
markets
prompted
the
Monetary
Policy
Council
to
start
a
cycle
of
interest
rate
increases.
It
was
a
favourable environment for a bank which was put to good use.
2021
is
the
starting
year
of
two
Pekao
Group
strategies
until
2024
-
financial
strategy
and
sustainable
development.
The
project
that
involved
a
large
part
of
the
staff
was
also
the
integration
of
the
acquired
assets
of
ex-Idea
Bank,
a
transaction
made
out
of
concern
for
the
security
of
the
Polish
financial
sector.
However,
this
did
not
change
the
Bank's
operating
philosophy,
i.e.
striving
to
improve
profitability,
increase
operational
efficiency
and
even
greater
emphasis
on
the
safety
of
employees
and
customers.
The
bank
showed
a
significant
increase
in
the
scale
of
operations,
while
ensuring
that
it
was
focused
on
the
segments
most
resistant
to
the
changes
in
the
economic
cycle.
We
have
intensified
cost-effectiveness
to
support
profitability.
Traditionally,
Bank
Pekao
has
remained
a
leader
among
large
Polish
banks
in
the
field
of
credit
and
legal
risk
management.
Referring
to
its
strategic
ambitions,
the
Bank
has
implemented
a
number
of
innovative
solutions,
thanks
to
which
it
strengthened
its
position
as
one
of
the
leaders
in
the
digital
transformation
of
the
sector.
In
the
era
of
the
pandemic
and
digital
revolution,
the
solutions
introduced
by
the
Bank
have
a
real
impact
on
business
development
by
continuing
the
record-breaking
pace
of
customer acquisition, as well as a rapid increase in customer activity in remote channels.
Further
tightening
of
cooperation
between
Bank
Pekao
and
the
remaining
PZU
Group
companies
allowed
for
the
realization
of
tangible
benefits
in
key
strategic
areas:
bancassurance
and
assurbanking.
At
the
same
time,
we
see
great
potential
in
the
development
of
the
product
offer
and
the
use
of
distribution
channels
as
well
as
expanding
the
customer
base.
In
the
face
of
the
digital
transformation
of
the
financial
sector,
we
are
also
constantly
striving
to
identify
and
implement
operational
synergies.
Cooperation
and
possible
synergies
in
the
field
of
sustainable
development
and
banking
and
insurance
solutions
for
clients
of
the entire Group in the field of ESG are becoming particularly important.
From
a
financial
sector
perspective,
2021
was
a
year
of
recovery,
testing
the
diversification
of
business
models,
the
degree
of
digitization
and
the
balance
sheet
strength
of
banks.
Despite
the
gradual
recovery
of
the
banking
sector's
results,
it
was
still
struggling
with
open
risks,
such
as
foreign
currency
housing
loans.
Due
to
the
negligible
balance
sheet
exposure
of
Pekao,
also
the
scale
of
provisions
for
the
CHF
portfolio
was
smaller
compared
to
its
key
competitors,
and
at
the
same
time
the
level
of
provisions
created
by
the
Bank
allowed
to
significantly
reduce
the
cost
of
legal
risk
in
the
future,
regardless
of
the
scenarios
of
further
development
of
this
issue
in
the
sector.
The
bank
maintained
a
conservative
approach
to
risk
management
in
the
face
of
persistent
high
uncertainty
in
the
functioning
of
the
economy.
At
the
same
time,
the
Bank
undertook
a
number
of
operational
activities
allowing
to
limit
the
negative
effects
of
the
difficult
environment
on
financial
results
thanks
to
high
operational
efficiency
and
additional
strategic
activities
optimizing
the
cost
base.
The
pandemic
highlighted
the
tangible
value
of
the
implemented
digital
transformation.
Thanks
to
its
effects,
the
Bank
was
able
to
quickly
adapt
to
operating
remotely
and
also
remain
close
to
customers
thanks
to
remote
distribution
channels.
I
am
convinced
that
the
operating
environment
in
a
pandemic
situation
will
be
an
impulse
for
further
changes
in
the
banking
sector,
not
only
in
Poland,
but
all
over
the
world,
and
the use of this potential will be the key to success in a competitive financial services environment.
Together
with
the
Supervisory
Board,
we
attach
great
importance
to
the
sustainable
development
and
responsible
activities
of
Bank
Pekao
supporting
the
implementation
of
its
business
goals
and
the
positive
and
stabilizing
effect
that
the
Bank,
thanks
to
its
scale,
can
have
on
the
environment
in
which
it
operates.
I
would
also
like
to
emphasize
the
consistent
development
based
on
ESG
factors
(Environment,
Social
Responsibility
and
Corporate
Governance),
strongly
in
line
with
the
responsible
business
strategy
of
the
entire
PZU
Group,
which,
as
the
largest
financial
institution
in
Poland
and
the
entire
region
of
the
Central
and
Eastern
Europe,
can
actively
support
the
energy
transformation
Polish
economy.
As
the
Supervisory
Board,
we
will
support
Bank
Pekao
in
further
enhancement
of
competences
in
the
ESG
area
and
even
stronger
emphasis
on
the
sustainable
development policy in both commercial and operational activities in the new strategy of the Bank.
In
conclusion,
on
behalf
of
ourselves
and
the
Supervisory
Board,
we
are
convinced
that
Bank
Pekao
will
continue
to
strengthen
its
leading
position
in
the
banking
industry
in
Poland.
I
am
also
sure
that
with
all
stakeholders
in
mind,
the
Bank
will
continue
to
care
for
the
sustainable
growth
of
the
company's
value.
I
trust
that
the
bank's
shareholders
welcomed
not
only
the
doubling
of
profit
last
year,
but
also
the
return
to
the
stable
dividend
policy,
which
is
proof
of
Pekao's
capital
strength
also
in
the
perception of regulators.
This
year,
the
external
conditions
seem
to
be
good
for
Bank
Pekao
-
the
environment
of
rising
interest
rates
and
good
dynamics
of
customer
volumes
indicate
a
continuation
of
the
positive
trends.
However,
the
environment
is
not
without
geopolitical
risks,
increased
inflation
and
-
decreasing
though
present
-
uncertainty
related
to
the
coronavirus
epidemic.
Bank
Pekao
has
already
started
its
involvement
in
helping
victims
of
the
war
in
Ukraine,
and
our
first
activities
are
humanitarian
aid,
including
for