-A A+
PL

Group on WSE

Reduced earnings outlook as a result of the pandemic caused decline in share price quotations of commercial banks in 2020. Investors expected an increased cost of risk and a decline in interest margins. The increase in costs of legal risk of foreign currency mortgage loans and the PFSA's recommendation on suspending dividend payments to shareholders were additional factors that contributed to declining quotations.
logo
PKO Annual
Report Online
2020

Share capital and shareholder structure

All the shares of PKO Bank Polski carry the same rights and obligations. No shares are preference shares, in particular with respect to voting rights (1 share gives 1 vote) or dividend. The Articles of Association of PKO Bank Polski limit the voting rights of shareholders holding more than 10% of the total number of votes at the General Shareholders’ Meeting, and prohibit those shareholders from exercising more than 10% of the total number of votes at the General Shareholders’ Meeting. The above restriction does not apply to:

  • those shareholders who on the date of passing the resolution of the General Shareholders’ Meeting introducing the limitation of the voting rights had rights from the shares representing more than 10% of the total number of votes in PKO Bank Polski (i.e. the State Treasury and BGK),
  • shareholders who have rights from A-series registered shares (the State Treasury),
  • shareholders acting jointly with the shareholders referred to in the second bullet point, based on agreements concluded concerning the joint execution of voting rights on shares.

The limitations to the voting rights of the shareholders expire from the moment when the share of the State Treasury in the bank’s share capital drops below 5%.

In accordance with:

  • § 6 (2) of the PKO Bank Polski’s Articles of Association, the conversion of A-series registered shares into bearer shares and the transfer of these shares requires the approval of the Council of Ministers in the form of a resolution. Conversion into bearer shares or transfer of A-series registered shares, after obtaining such approval, results in the expiry of restrictions in respect of shares subject to conversion into bearer shares or transfer, to the extent to which this approval was given,
  • Article 13 (1) (26) of the Act of 16 December 2016 on the principles for public property management (apart from the statutory exceptions), the shares of PKO Bank Polski held by the State Treasury or rights from these shares cannot be sold,
  • Article 77 of Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms, amending Regulation (EU) No. 648/2012, any reduction, redemption or repurchase of Common Equity Tier 1 instruments issued by the bank is only possible with the prior permission of the PFSA.

Structure of the share capital of PKO Bank Polski at the end of 2020:

Series Type of shares Number of shares Nominal value
of one share		 Nominal series value
(PLN)
A Series ordinary registered shares 312 500 000 PLN 1 312 500 000
A Series ordinary bearer shares 197 500 000 PLN 1 197 500 000
B Series ordinary bearer shares 105 000 000 PLN 1 105 000 000
C Series ordinary bearer shares 385 000 000 PLN 1 385 000 000
D Series ordinary bearer shares 250 000 000 PLN 1 250 000 000
1 250 000 000 1 250 000 000

 

On 31 December 2020, the share capital of PKO Bank Polski amounted to PLN 1 250 000 000 and comprised 1 250 000 000 shares with a par value of PLN 1 each. The shares are fully paid. The share capital of the bank remained unchanged compared with its status as at the end of 2019. The issued shares of the bank are not preference shares.

Shareholder structure of PKO Bank Polski:

As at 31.12.2020 As at 31.12.2019 Change in the share in number of votes at GM
Number of shares Share in number of votes at GM
and in share capital		 Number of shares Share in number of votes at GM
and in share capital
State Treasury 367 918 980 29.43% 367 918 980 29.43% –
Nationale-Nederlanden Open Pension Fund1) 107 198 023 8.58% 94 500 000 7.56% 1.02 p.p.
Aviva Open Pension Fund1) 93 610 319 7.49% 88 010 319 7.04% 0.45 p.p.
Other shareholders2) 681 272 678 54.50% 699 570 701 55.97% -1.47 p.p.
Total 1 250 000 000 100.00% 250 000 000 100.00% –
1) Calculations according to annual information published by PTE about the year-end structure of fund assets, and quotations from the official securities exchange list.
2) Includes BGK that held 24 487 297 shares as of 31.12.2020 and 31.12.2019, constituting a 1.96% share of the votes at the General Shareholders’ Meeting.

 

At the end of 2020, there were three shareholders that directly or indirectly held significant blocks of shares (at least 5%): the State Treasury, Nationale-Nederlanden Open Pension Fund, and Aviva Open Pension Fund. The bank is not aware of any agreements concluded in 2020 that would cause future changes in the proportions of the shares held by the current shareholders or bond holders.

Quotations of shares and capitalization

In 2020, the price of shares of PKO Bank Polski was PLN 28.72 (-17 y/y). The indices WIG20 and WIG Banks dropped by 8% and 30% respectively. The main decline in the quotations took place in March 2020. The reason for the repricing of the bank’s shares was the reduced earnings outlook as a result of the pandemic. As a result, investors expected an increased cost of risk and a decline in interest margins. The increase in costs of legal risk of foreign currency mortgage loans and the recommendation of the PFSA on suspending dividend payments to shareholders were additional factors contributing to the decline in quotations.

The emergence of positive information on COVID-19 vaccines improved the bank’s valuation towards the end of the year by accelerating expectations for a strong economic rebound in Poland and worldwide. The PFSA’s proposal in December 2020 to resolve the issue of foreign currency mortgage loans through voluntary settlements with customers also had a positive impact on the price of shares. PKO Bank Polski was the second-largest company listed on the Warsaw Stock Exchange, valued by investors at over PLN 36 billion at the end of 2020.

Ratings

Ratings of PKO Bank Polski on 31 December 2020 (paid rating):

Moody’s Investors Service
Long-term deposit rating A2 with stable outlook
Short-term deposit rating P-1
Senior unsecured debt rating A3 with stable outlook
MTN Programme rating (P)A3
Other short-term liabilities of the Programme (P)P-2
Counterparty risk assessment – long-term A2
Counterparty risk assessment – short-term P-1
Opinion on counterparty risk (CR) – long-term A2(cr)
Opinion on counterparty risk (CR) – short-term P-1(cr)

Ratings of PKO Bank Hipoteczny on 31 December 2020 (paid rating):

Moody’s Investors Service
Long-term issuer rating Baa1 with stable outlook
Short-term issuer rating P-2
Counterparty risk assessment – long-term A3
Counterparty risk assessment – short-term P-2
Opinion on counterparty risk (CR) – long-term A3(cr)
Opinion on counterparty risk (CR) – short-term P-2(cr)
Rating for PLN mortgage bonds issued Aa1
Rating for EUR mortgage bonds issued Aa1
The ratings for PLN- and EUR-denominated mortgage bonds were upgraded in December 2020.

Ratings of bonds of Polish Lease Prime 1 DAC on 31 December 2020 (paid rating):

Ratings of A-series bonds
Scope Agency AAA
ARC Agency AA-
Ratings of B-series bonds
Scope Agency BB-
ARC Agency BB+
The ratings were assigned in September 2019 and confirmed in September 2020.

Ratings of KREDOBANK on 31 December 2020:

“Expert-Rating” Rating Agency (paid rating)
Credit rating on national scale uaAAA with stable outlook
Rating on national scale for A- and B-series bonds issued uaAAA with stable outlook
“Standard-Rating” Rating Agency (paid rating)
Credit rating on national scale – long-term uaAAA with stable outlook
Credit rating on national scale – short-term uaK1 with stable outlook
Deposit rating on national scale ua1 with stable outlook
Rating on national scale for A- and B-series bonds issued uaAAA with stable outlook
The ratings were assigned in 2016-2017 and confirmed in November 2020. The long-term credit rating of KREDOBANK on a country-wide scale reflects the investment level, and thus meets Ukrainian statutory requirements regarding investing funds from insurance reserves by insurers and investing pension fund assets.

ESG ratings of PKO Bank Polski on 31 December 2020:

FTSE Russell 3.1
MSCI BBB
Sustainalytics 25.7 (medium)
Vigeo Eiris 29

 

Investor relations

PKO Bank Polski maintains a regular contact with investors and financial market analysts. As part of their relationship with the market, the bank’s representatives answer questions of interest to investors and analysts on a wide range of the bank’s operations, financial results and the situation of the banking sector. Moreover, the bank enables contact in various forms preferred by investors and analysts. Due to the COVID-19 pandemic, from mid-March 2020, all contacts with investors and analysts were carried out remotely.

Scope of investor relation activities in 2020:

  • strengthening the positive image of PKO Bank Polski as a reliable and transparent company among existing and potential investors, financial market analysts and rating agencies,
  • providing information on the bank’s financial results and activities, including changes in the market environment, in order to allow a reliable assessment of the bank’s current situation and perspectives, as well as the correct valuation of its shares,
  • providing information on non-financial areas of the bank’s operations, especially ESG reporting and planned new initiatives that complement conventional financial analysis when making investment decisions,
  • fulfilling the information duties by the bank as an issuer of securities, as required by law,
  • organizing the General Shareholders’ Meetings and providing information to the bank’s shareholders,
  • ensuring the bank’s cooperation with responsible governmental bodies, organizations and capital market institutions in connection with the bank’s presence on the public securities market.

Visit: Investor Relations at PKO Bank Polski

In 2020, a total of 340 investor meetings were held:

 

Financial results of the bank and the group were presented after each quarter by the management board of the bank at meetings and videoconferences with investors and analysts of the capital market and debt instruments. They were held at the bank’s headquarters as well as during teleconferences and videoconferences, each time attended by a total of about 60 analysts and investor representatives. Additionally, members of the bank’s Management Board answered investors' questions during investor conferences organized remotely with investors from all over the world. In 2020, 228 such meetings were held in total during 26 conferences with investors.

Group in 2020 Bank’s financial position
Group in 2020 Capital adequacy

Search results: