1.5 The PKO Bank Polski SA Group against its peer group
Improvement of economic growth rate and record low interest rates in 2014 were reflected in the increase in financial results of banks. In 2014, the PKO Bank Polski SA Group achieved high financial results, continuing the trend from previous periods.
In 2014, Polish banking sector maintained strict cost control over administrative expenses. In 2014, despite the additional costs related to the integration of new companies the PKO Bank Polski SA Group maintained the relation of costs to income at a low level – lower than the value realised by the peer group.
In 2014, financial results of the banking sector were influenced by low interest rates, higher credit risk costs, accompanied by positive influence of cost discipline.
At the same time, the policy of the PKO Bank Polski SA Group contributed to maintain a high return on assets.
The macroeconomic situation in 2014 contributed to increase in financial results, along with strengthening banks’ capital base, which led to the stabilisation of the annualised return rates on equity. In 2014, the PKO Bank Polski SA Group maintained high profitability.
Capital adeguacy ratio
The capital situation of the banking sector in 2014 remained stable and as a result, capital adequacy ratio remained on a high level in the whole sector.
As at 31 December 2014 capital adequacy ratio was calculated based on the provisions of the CRR Regulation. In 2014 the PKO Bank Polski SA Group increased a capital base by way of the accumulation of a part of profit of PKO Bank Polski SA for 2013 and including a part of profit achieved by the Bank in the first half of 2014 to own funds.
Undertaken actions allowed to strengthen a capital position of the PKO Bank Polski SA Group compared to its peer group.
 Peer group includes the following Groups: Pekao SA, mBank SA (BRE Bank SA), ING Bank Śląski SA, BZ WBK SA. Ratio calculations are based on the data available in consolidated annual and quarterly reports of the particular banks. All data is weighted by total assets.