Retail segment

In 2014, activities undertaken by the Bank within the retail segment were focused on increasing attractiveness and competitiveness of produtcs offered, with flexible reaction to changing market conditions. In the retail segment PKO Bank Polski SA continued sustained development, focused on recognising and satisfying needs of customers with whom it wants to build strong, long-term relationships. Actions aimed to improvement of the customer service quality i.a. through the development of employees competencies (product trainings) and actions leading to increase innovation in the new financial solutions, not only concerning products, but distribution channels as well, particularly in electronic banking and mobile payments were taken.

The loan offer in the retail segment

The PKO Bank Polski SA’s offer includes a wide range of loan products. Retail, private and mortgage banking customers can take advantage of financing available under the consumer loans in the form of cash loan, Aurum and Platinium loan, mortgage loan, revolving loans and credit cards as well as financing available under housing loans. The loan offer in the form of investment and investor loans is available for Small and medium enterprises.
As at the end of 2014, gross loans to the retail segment of PKO Bank Polski SA amounted to PLN 133.6 billion and have increased by PLN 22.8 billion (i.e. by 20.5%) since the beginning of the year. This was mainly due to an increase in the portfolio of mortgage banking loans (+31.7% since the beginning of the year) the level of which was influenced by i.a. the legal merger and the acquisition of housing loans portfolio in the amount of approx. PLN 15.7 billion.

Retail segment loans structure as at 31.12.2014

Loans in the retail segment (in PLN million)

Mortgage banking loans

In 2014, the Bank maintained a strong position on the housing loans market. According to the data presented by the Polish Bank Association (‘PBA’), PKO Bank Polski SA ranked first on the market with its 30.7% share in sale of housing loans for individuals.

In the discussed period PKO Bank Polski SA granted housing loans with the financial support of Bank Gospodarstwa Krajowego in the programme ‘Mieszkanie dla Młodych’. The programme consists of co-financing from State budget’s funds to own contribution and awarding additional financial support in the form of repayment of a part of the loan. In 2014 PKO Bank Polski SA granted 4 976 loans for a total amount of PLN 882.5 million within the programme ‘Mieszkanie dla Młodych’. In last year a special offer for customers being members of specific professions and for the customers of the industry fairs was still maintained. Special offers for customers buying real estate by selected developers and an offer for the holders of ‘Karta Dużej Rodziny’ were also introduced.

The Bank's share in the new sale of housing loans for retail clients*

Retail and private banking loans

The PKO Bank Polski SA’s offer includes a wide range of loan products. Retail customers can take advantage of both the standard Cash Loan, as well as the current financing available under the revolving loans and credit cards. A special offer of the Aurum and Platinium loans with available high amounts of loans and competitive pricing parameters, is available for the affluent clients.

In 2014, PKO Bank Polski SA continued the action of promoting sales of consumer loans. As part of the initiatives supporting the sales of such products, the Bank carried out promotional activities, mainly focused on the cash loan and the Aurum/Platinium loan.

In 2014, the Bank conducted four marketing campaigns to promote the sales of cash loans under the following slogans: ‘Mini Ratka z wypiekami na 5’, ‘Mini Ratka w mgnieniu oka’, ‘Wzruszająco przystępna Mini Ratka’, and ‘Bądź dobrej myśli na święta z Mini Ratką’. The main product benefits of these campaigns were attractive price terms and easy access.

In focusing its measures on increasing the availability of the loan offer to retail customers, PKO Bank Polski SA introduced a number of simplifications comprising, i.a.:

• eliminating the requirement for the co-spouse to give his/her consent and to enter into the agreement for cash advances or loans of up to PLN 30 thousand inclusive,
• increasing the amount available based on a salary certificate for customers who do not have a current account or who have had a current account for less than 6 months,
• implementing special terms and conditions for granting loans based on PIT returns, consisting of the possibility to document one’s income in a simplified manner,
• enabling customers who have access to the iPKO service to raise a cash loan based on a loan request filed through a remote channel and to confirm the agreement with an authorisation code,
• enabling customers who do not have a current account with PKO Bank Polski SA or who do not have access to the iPKO service to file a complete request for a cash loan via the website.

Loans for small and medium enterprises

PKO Bank Polski SA consistently supports Polish entrepreneurship. It enables small and medium enterprises to finance both current and investment needs through an extensive and flexible lending offer. Due to the agreement signed between PKO Bank Polski SA and Bank Gospodarstwa Krajowego for a portfolio de minimis guarantee line ‘Portfolio de Minimis Guarantee Facility’, under the government programme of support for small and medium enterprises, the entrepreneurs gain support in the form of BGK guarantee – de minimis, aimed at increasing the availability of lending facilities and launching additional funds for companies’ on-going activities. In 2014, approximately 19 thousand customers benefited from access to easier financing. The value of loans granted amounted to PLN 4.4 billion. As at the end of 2014 almost 30 thousand customers had already benefited from ‘Portfolio de Minimis Guarantee Facility’ programme and the value of granted loans amounted to PLN 6.8 billion. PKO Bank Polski SA was the biggest lender among twenty one banks granting loans with de minimis guarantees and held 26.9% of the market share (according to data provided by the Warranties and Guarantees Centre of Bank Gospodarstwa Krajowego as at 31 December 2014).

Due to the great interest in ‘Portfolio de Minimis Guarantee Facility’ from customers in 2014 PKO Bank Polski SA signed annexes to the agreement with BGK associated with prolongation of provision of guarantees, with the increase in the guarantee limit granted. In accordance with the last agreement the programme of guarantee de minimis remains effective till the end 2016 and guarantee limit was increased to PLN 2.5 billion.

In the fourth quarter of 2014 a loan for SMEs was introduced to the Bank’s offer for customers of small and medium enterprises sector. The loan is granted only in PLN for the period to 60 months up to maximum amount of PLN 500 thousand and can be used for any purpose related to conducted business activities. The customers with a total credit exposure up to PLN 3 million can avail themselves of the offer. Additionally, PKO EURO BIZNES credit card was introduced to the Bank’s offer for the customers of housing market sector.

The deposit and investment offer

In 2014, PKO Bank Polski SA continued activities aimed at offering more attractive deposits for retail clients, taking into account current market conditions and competitive position.

As at 31 December 2014, deposits of the retail segment of PKO Bank Polski SA amounted to PLN 139.1 billion and since the beginning of the year their volume increased by PLN 13.7 billion (i.e. by 11.0%). The increase in the retail and private banking deposit level mainly contributed to this, due to the increase in both the volume of current deposits and volume of term deposits. As a result of a legal merger with PKO Bank Polski SA and Nordea Bank Polska SA As at 31 December 2014, deposits of the retail segment of PKO Bank Polski SA amounted to PLN 139.1 billion and since the beginning of the year their volume increased by PLN 13.7 billion (i.e. by 11.0%). The increase in the retail and private banking deposit level mainly contributed to this, due to the increase in both the volume of current deposits and volume of term deposits. As a result of a legal merger with PKO Bank Polski SA and Nordea Bank Polska SA retail segment deposits portfolio in the amount of approx. PLN 5.3 billion was acquired.

Deposits in the retail segment

Current and savings accounts

PKO Bank Polski SA remains market leader in terms of the number of current accounts maintained, which amounted to 6.7 million as at the end of 2014 (including 0.3 million accounts acquired as a result of the merger). The increase in the number of accounts resulted from the diversified offer in terms of customer preferences as part of which i.a. the following products can be distinguished: PKO Konto bez Granic, SUPERKONTO Oszczędne, PKO Konto za Zero, PKO Konto dla Młodych, PKO Konto Pogodne, PKO Konto Pierwsze and PKO Junior.

The changes in the offer in respect of current accounts introduced in 2014 include:

• a new offer PKO Konto za Zero, giving exemption from charges for keeping an account in case of having a debit card to the account and from fees on debit card, if a given amount of non-cash transactions was realised, as well as including a unique within the market Acceptable Debit Balance, which is characterised by non-interest bearing balance up to the limit granted,
• introducing ‘Nowe Konto Osobiste PKO Konto dla Młodych’ to the offer. This account is intended for students and university graduates aged 18 to 26 and comes with a wide range of additional benefits, i.a. a modern embossed debit card with a contactless payment function, attractive interest rates on the saving account, a new service called ‘Autooszczędzanie’ (Autosaving), a simplified procedure for the sale of student credit card and preferential terms for revolving loans,
• customers in the age of 13-18 were offered a free debit card to free of charge ‘PKO Konto Pierwsze’ account, which allows to withdraw cash from all ATMs without any charges in Poland and worldwide.

Number of current accounts (in thousand of units)

In 2014 PKO Bank Polski SA joined the initiative ‘Karta Dużej Rodziny’. Due to that, since 1 September 2014 owners of the ‘Karta Dużej Rodziny’ may enjoy free PKO Konto za Zero account and a debit card free of charge.

The offer is supplemented by savings accounts giving clients the ability to combine the interest dependent on the level of invested funds with the possibility of its flexible management. Since 31 September 2014 the availability of saving account payable on demand was expanded by currencies: Swedish crown, Norwegian crown and Danish crown.

In 2014 PKO Bank Polski SA introduced a special offer for individual farmers including account, settlements and lending. The individual farmers, who opened a current account within Biznes Rozwój package benefited from reduced charge for keeping an account and free of charge sealed cash collection. Customers without any additional charges can i.a. benefit from the availability to use the account in iPKO electronic banking, Internet transfers to the Social Insurance Institution (ZUS), Tax Office (US), free access to cash deposit machines and to the platform for keeping of accounts (free over the period of 6 months).

Banking services for children under the age of 13

PKO Bank Polski SA has been involved in projects aimed at the financial education of the youngest for years. In 2014, active measures were taken to develop the PKO Junior service for children. New functionalities were implemented, which comprised, i.a.:

• adding two new lines of badges for children and ‘Good Deeds’ by which children may support various charity campaigns organised by the PKO Bank Polski SA’s Foundation,
• the money box can be broken, with the funds being automatically transferred,
• introducing the option ‘Pinning posts on social services’ to be activated by the parent, thanks to which the child has the possibility of adding posts on selected social portals about, i.a. winning a new badge, collecting a full amount in his/her money box or meeting a challenge,
• in the Parent Application, the possibilities to make family transfers, delete pocket money without having to provide an authorisation code, expand the details of challenges, and unblock access to the child’s service by the parent were added,
• the option for the parent to grant the child access to information about the cards assigned to it, which gives the child the possibility of viewing the transactions conducted using a card and to better manage its funds.

In 2014, an offer of prepaid cards dedicated to parents and children under the age of 13 was comprehensively implemented. For the needs of this product, a new process was implemented, which makes it possible to manage cards in the iPKO service from the Parent Application level. The PKO Junior prepaid cards linked to the PKO Junior offer were prepared in three versions:

• PKO Junior card (a contact-proximity card) for making payments all over the world at points of sale accepting VISA card payments, on the Internet, and for cash withdrawals from ATMs,
• PKO Junior proximity label – a label with an accompanying card for making online payments,
• Śmigacz PKO Junior – a SIM card offered together with gadgets for making proximity payments and conducting online transactions.

In the course of 2014, the offer of prepaid PKO Junior cards was expanded to include PKO Junior MasterCard with the images of popular cartoon characters.
In 2014, the students of the first post-primary schools used the PKO Bank Polski SA school card. The school card is an innovative solution on the Polish market, combining two useful properties: security and education. The school card is a prepaid payment card which is also an entrance card for the school building. It enables the child to use its money in a convenient way without having to give it cash and to remain safe on its school premises. The implemented product skilfully combines modern technologies, elements of financial education, and cooperation with social partners.

In 2014, the First Savings Account for the Bank’s youngest customers was added to its offer. This account is the first and only savings account in the Bank’s offer, using the mechanism of calculating an extra bonus to the interest rate on the funds in the account, in return for regular payments made by the customer.

Term deposits and regular saving products

As at 31 December 2014, the value of retail market deposits amounted to PLN 139.1 billion y/y, in which retail and private banking deposits prevailed. The retail segment customers invested their funds mainly in term deposits. The share of term deposits in the segment’s deposits amounted to 44.6% as at the end of 2014.

The Bank offered its customers, i.a. deposits with progressive and standard interest rates, housing savings books and structured deposits. For retail and private banking customers the following were available in the Bank’s offer: an even and an odd deposit, a 3M deposit, a 6M deposit, a 3+9+12 deposit, a 15M deposit, a 24M deposit, a 3+3 deposit account, 36 month Saving Housing Book, whereas for small and medium enterprises sector the Bank offered the 12M dynamic deposit with a progressive rate of interest.

In the second half of 2014 the Bank introduced a complex offer in respect of regular long-term saving for individual and retirement purposes through a number of dedicated term deposit accounts i.a.: ‘Kapitał na Emeryturę’, ‘Kapitał na Emeryturę z funduszem PKO Zabezpieczenia Emerytalnego’, ‘Kapitał na Marzenia’ and ‘Kapitał na Marzenia z Portfelem Inwestycyjnym’. Within the determined saving purpose, the customer has the possibility to choose a product based on three product categories: deposit (100%), deposit-investment (50%/50%) and investment (100%). Each product category consists of several saving programmes, which are characterised by defined monthly amount of contributions. Introduction of distinction in respect of a purpose, a contract period, a category and a declared payment allows customers to adjust a saving programme to its needs, risk tolerance and financial capabilities.

Structured instruments sold in the form of structured deposits or Bank Securities are an element of the Bank’s standard offer dedicated to retail customers. In the period under discussion, the Bank conducted 17 subscriptions for 10 structured deposits based on, i.a. a basket of company shares, currency exchange rates, and stock exchange indices. Having such products in its sales offer allows the Bank to offer attractive products to its customers and helps to improve PKO Bank Polski SA’s image as an institution offering innovative investment instruments. The appeal of these products is demonstrated by the results: a structured deposit based on the price of palladium, which PKO Bank Polski SA offered to its customers in 2012, generated a 37.39% profit for the investors for the entire investment period, which is nearly 15% a year.

As part of the deposit offer for small and medium enterprises, in 2014 cooperatives, property managers and homeowner associations were offered for the first time the possibility of participating in the next edition of ‘Business Deposit’ (‘Biznes Lokata’) – a term deposit with progressive interest rates and 3, 6 and 12-month tenors.

Retail segment deposit structure as at 31.12.2014

Gold bars

The Private Banking Offices and all of the Bank’s branches offer their Clients the possibility of purchasing investment gold bars, both with low and high basis weight. In particular, it is possible to purchase bars such as: 1g, 5g, 10g, 20g, 31g, 50g, 100g, 250g, 500g, 1 000g.
A unique solution on the market is the possibility of collecting bars at a PKO Bank Polski SA branch or the warehouse of the Mint of Poland. On individual Client request, bars may be sent by courier to any address.

Investment funds and investment and insurance products

In 2014, PKO Bank Polski SA was systematically developing its investment fund offer. Apart from modifying the PKO Towarzystwo Funduszy Inwestycyjnych SA’s offer (i.a. the subfunds set apart within the PKO Światowy Fundusz Walutowy were merged – the PKO Ochrony Kapitału 100 subfund with the PKO Papierów Dłużnych USD subfund). The Bank also performed new issues for closed-end investment funds, which gave its customers access to various investment strategies.
In 2014, in cooperation with PKO Życie Towarzystwo Ubezpieczeń SA, a new product line of Life Insurance with Capital Insurance Funds for retail and private banking clients was included in the Bank’s offer. The product is available in two versions: a basic one, based on three investment strategies designed by PKO Towarzystwo Funduszy Inwestycyjnych SA, and an expanded one, additionally based on selected PKO Towarzystwo Funduszy Inwestycyjnych SA funds and its partners’ funds.

Sales of State Treasury bonds

PKO Bank Polski SA is the only bank to sell and service retail bonds issued by the State Treasury, under an agreement concluded with the Minister of Finance. Treasury bonds are sold through the expansive sales network of PKO Bank Polski SA, which is a great convenience for all persons who wish to invest in bonds. In 2014, over 27 million bonds were sold, including nearly 8 million of highly popular short-term bonds (KOS).

Other products and services in the retail segment

Banking cards

As at the end of 2014 a number of credit cards of PKO Bank Polski SA increased to the level of 7.5 million units (including 0.3 million cards acquired as a result of the merger).

In 2014, a new MasterCard Debit card for Nowe Konto dla Młodych and new Visa Aurum and Visa Platinum embossed cards for Personal Banking customers were implemented to the Bank’s offer. The Bank also revitalised credit cards of PKO Bank Polski SA with the loyalty programme VITAY. Four PKO VITAY credit cards in the Bank’s offer were replaced with a Partner Credit Card PKO VITAY with a VISA logo.

A new payment product ‘Karta debetowa dla użytkownika’ was introduced into the Bank’s offer in July 2014, giving the possibility to issue a debit card for the account’s proxy, as well as for owner-designated third parties not connected with the account by any kind of relationship.

In 2014, the Bank conducted the advertising campaign of Przejrzysta Karta Kredytowa PKO Visa. Under the campaign, the number of product’s advantages was presented, such as the possibility to control expenses via SMS package. With the free SMS service, the customer regularly receives information about the date of card repayments and about upcoming date of charging an annual fee.

In the period under discussion, PKO Bank Polski SA introduced a number of innovative process solutions, which has facilitated managing and using cards by customers. A functionality that enables i.a. to overlook card transactions via Card Information Center (that allows customers to have immediate access to information concerning card transactions) and to transfer the credit card overpayment on another card or any account by using telephone service, was made available. Introducing the possibility to disable the proximity function of MasterCard cards immediately after entering data into the system and managing daily limit Internet transactions via electronic access channels were an important convenience for customers.

The actions aimed to increasing a number of card transactions were also taken. For this purpose the communication to customers with information on rebates and bonuses in the selected shops were prepared. The Bank also encouraged customers without debit cards to their ordering through the presentation of benefits from holding and using of cards.

Number of banking cards (in thousand of units)

Insurance products for retail and private banking clients as well as small and medium enterprises

In increasing the appeal of its banking products by allowing the possibility to use additional services, tailored to the needs and expectations of its customers, the Bank offers insurance products for retail and private banking clients as well as the segment of small and medium enterprises, linked to banking products such as:

• current accounts (ROR) (i.a. life and accident insurance, property insurance, civil liability insurance, assistance insurance, travel insurance, Bill Protector),
• banking cards (i.a. security insurance package for credit, charge and debit cards, travel insurance),
• consumer, mortgage and corporate loans (life and loss of job insurance, low own contribution insurance, bridging insurance, property insurance, assistance insurance).

In 2014, insurance associated with a new credit card, PKO VITAY, and life insurance for PKO Bank Polski SA customers who have concluded agreements for loans or advances secured with mortgage or are holders of credit cards or current accounts (ROR) maintained by PKO Bank Polski SA were added to the Bank’s offer. These insurance products were designed in cooperation with PKO Życie Towarzystwo Ubezpieczeń SA.

The Bank also included Insurance for Cash Loans and Insurance for Inteligo Loans in its offer. These products constitute insurance packages consisting of life insurance designed in cooperation with PKO Życie Towarzystwo Ubezpieczeń SA and loss of job insurance.

Mobile banking IKO

In 2014, a year passed since the introduction of IKO mobile payments. At present, IKO is the most popular and most developed mobile payment system in Poland.

The IKO application is now used by more than 228 thousand users, and the acceptance network covers over 70 thousand eService payment terminals and 10 thousand online stores. At present, IKO users have access to more than 6 thousand ATMs.

In the analysed period, a new version of the IKO application was made available to PKO Bank Polski SA customers. Upgrading the software made the application operate more quickly and brought a number of improvements in the area of security, i.a. due to modifications to the application registration process.

The changes and new functionalities introduced to the IKO application in 2014 comprised, i.a.:

• access to ATMs in the Euronet network free of charge,
• making available an engine to search for online stores in which IKO payments can be made,
• possibility to register companies accepting transfers to telephone numbers with the IKO acceptance network map on one’s own,
• possibility to make payments using IKO in PKO Bank Polski SA paying machines,
• introducing a ‘fast payment mode’ (presentation of IKO authorisation codes without having to log into the application), the possibility to repeat a transfer and make a return transfer to the sender,
• implementing the Autosaving service which consists of linking transactions conducted via IKO to saving funds in a specified customer account.

Parallel to this, the IKO Wallet (‘Portmonetka IKO’) was modified in such a way that Wallet users may purchase a part of funds in ATMs, close the Wallet when the balance is higher than nil, or purchase funds in excess of the purchase limit.

In 2014, the Bank’s infrastructure was adapted to processing mobile payment transactions using Polski Standard Płatności Sp.z o.o. Thanks to this, when Polski Standard Płatności Sp. z o.o. becomes operational and the decision about the start of the new transaction processing model is made, it will be possible to process IKO mobile transactions without unnecessary delay.

Electronic banking

Retail segment customers have access to electronic banking as part of the iPKO, iPKONET and iPKO Biznes services. In the period under discussion, a new functionality was introduced to the iPKO transaction service, which makes it possible to file a request for a debit card to an account. In addition, the Bank enabled all holders of PLN accounts to order proximity gadgets via iPKO. The Bank also implemented a CardMoney service in iPKO – a fast transfer between accounts, where, instead of the recipient’s account number, a debit card number is given. The range of functionalities for credit cards was also expanded by introducing the possibility to manage the automatic pay-off of credit card balances and change the settlement cycle. In credit card details, a functionality was added, consisting of presenting information about the number of card transactions and the annual fee for the card.

In order to increase the level of security of online transactions conducted using MasterCard credit cards, in 2014 the Bank introduced an additional safety feature for such transactions. At present, accepting payments requires logging into iPKO and confirming the order with an authorisation code.

At the end of 2014, PKO Bank Polski SA gave its customers access to new versions of the iPKO online service and the iPKO Dealer platform. The new iPKO has new, fresh artwork in line with that of the information service of PKO Bank Polski SA, as well as new functionalities and elements which customers can manage on their own. iPKO Dealer is a professional, online foreign exchange platform addressed to the Bank’s customers who make settlements in foreign currencies. It allows them to conclude foreign exchange transactions, manage exchange risk, and invest surplus funds on their own.

Number of customers with iPKO access (in thousand of units)

Private banking

In 2014, the Private Banking Centre continued the dynamic development of the network dedicated to serving the Bank’s wealthiest clients. Banking Offices were opened in Łódź (October 2014) and Szczecin (November 2014). At present, clients are served in eight Offices located all over Poland. The clients are served by 60 Private Banking Consultants who guarantee discretion, professionalism, availability, and an individual approach to their clients’ needs and expectations.
As part of the offer, the Bank’s wealthiest clients may count on, i.a. financial consulting services provided by a professional team of consultants, being served in private banking offices which guarantee a discrete atmosphere and prestige, and a special product offer.

PKO Bank Polski SA prepared an extensive deposit offer for its private banking clients, which makes it possible to place deposits for various terms, including foreign currency deposits. The proposed forms of saving also include products which allow access to funds during the investment period. Clients may take advantage of individually negotiated interest rates. As part of products for its wealthiest clients, the Bank offers, i.a. an asset management service provided by PKO Towarzystwo Funduszy Inwestycyjnych SA. The asset management service is dedicated to clients who seek individual solutions and wish to entrust all or part of their funds with licensed investment advisors.

In order to ensure top quality services, the Bank introduced a three-stage training and certification path for consultants serving the wealthiest clients. A specialised team of consultants, in active cooperation with clients, monitors their assets, provides economic knowledge, and signals market events which may affect the rate of return on client investments. In addition, in each office there is a possibility to contact a broker who coordinates the cooperation of the Private Banking Centre with the Brokerage House of PKO Bank Polski SA.

Distribution network

As at the end of 2014, the retail network of PKO Bank Polski SA consisted of 1 261 branches and 8 retail banking offices. Compared with the end of 2013 the total number of retail branches increased by 131. The incorporation of 133 branches of Nordea Bank Polska SA into the structure of PKO Bank Polski SA within the legal merger conducted in October 2014 influenced the number of branches.

Branch network and agencies

Improving customer service conditions in the network is one of the tasks supporting a strategic programme titled ‘Enhancing the effectiveness of distribution of the network of branches and agencies’. In the period under discussion, these measures focused on modernising branches, moving the branches to new, attractive locations, and creating new branches. They were aimed at increasing market competitiveness, improving customer service conditions, and optimising the space occupied by the branches. These measures support the effective acquisition of customers and guarantee that the customers are served in comfortable and identical conditions, regardless of the place of service. In 2014, 67 branches were modernised, including relocating 33 branches and modernising another 27. In the year under discussion, a project titled ‘Low-cost modernisations’ was launched, which was aimed at adapting the branches to the applicable standards in terms of the equipment and liquidating checkout counters at branches which did not require complete redecoration. The project covered 52 branches, including 49 branches modernised by the end of 2014. As a result of the above actions, in 2014 a total of 116 branches were renewed and modernised.

The large branches were optimised by reallocating them and dividing into smaller locations, which made it possible to reach a greater number of customers. These measures have resulted in an evenly spread network of small and medium branches, a structure tailored to the potential of a given micromarket with optimisation of space.

A network of agencies constitutes an important supplement to the network of the branches and ATMs. As at 31 December 2014, the Bank cooperated with 1 001 agencies compared with 1 074 agencies as at 31 December 2013. The drop in the number of agencies was the effect of planned measures aimed at increasing the effectiveness of the network, increasing sales and increasing the importance of the agency network as a channel for distributing the Bank’s products and services.

In 2014, the number of the Bank’s own ATMs increased by 73 compared with 31 December 2013 and reached 3 065 as at the end of December 2014. By 31 December 2014, there were 485 ATMs with a cash deposit module. The share of the number of deposit transactions using cash deposit machines in the total number of deposit transactions conducted at branches equipped with cash deposit machines amounted to 36.0% as at the end of the fourth quarter of 2014 and increased by 16.6% compared with the corresponding period of 2013. Moreover, the first cash recyclers – self-service devices equipped with ATM functionalities and a cash deposit module, with a closed cash cycle – were launched. PKO Bank Polski SA was the first commercial bank to adopt this solution which, by ensuring that the same cash is used over and over inside the machine, reduces the machine’s maintenance costs.

As at the end of 2014, the Bank had 325 cash drops, including 187 devices of a new type which make it possible to post on-line payments to the account holder’s account.

Operational data in retail segment

The Virtual Branch

In 2014 PKO Bank Polski SA launched the Virtual Branch, which purpose is to above all provide the possibility of sale products and operational service without the necessity to visit the branch, along with keeping the highest Customer service quality.

Customers can file applications for mortgage loan within the programme ‘Mieszkanie dla Młodych’, working capital loan for SME, investment loan for SME, credit card as well as applications to amend a revolving credit limit and the limit on the credit card via the Virtual Branch.

Moreover, within the project of sale process virtualisation buying a business package via Internet was made available for civil law companies and individuals conducting a business activity, which resulted in reducing the time of opening a company account.

Payments of the funds of Bank Guarantee Fund to SKOK Wspólnota and SKOK Wołomin customers

In 2014 in branches of PKO Bank Polski SA payments of funds of Bank Guarantee Fund were made to the customers of SKOK Wspólnota and SKOK Wołomin. The payments were realised by 21 600 customers of SKOK Wspólnota among 74 035 authorised persons, who took funds for a total amount of PLN 766 million (out of PLN 815 million) and 16 thousand customers of SKOK Wołomin among 45 428 authorised persons, who took funds for a total amount of PLN 1.9 billion (out of PLN 2 250 million).