Letter from the Chairman of the Management Board

The year 2014 was another important period for development and value increase of Bank Pocztowy. Most importantly, in 2014 the Bank Pocztowy Capital Group hit a record in terms of financial performance. The net profit amounted to PLN 43.6 million, being 21% higher than in the prior year.

This is the best performance in the 25-year history of Bank Pocztowy. Comprehensive income reached PLN 332 million, being 13% higher than in 2013, despite low interest rates that negatively affected Bank’s key income source, i.e. net interest income.

On the other hand, cost management was efficient enough to reduce the cost/income ratio to 65.3%, i.e. to the level 6.6. p.p. lower than in the prior year.

An increase in the scale of Group’s operations was among key factors contributing to the improved performance. Clients considered our credit offer attractive, and at the end of 2014, Bank’s gross credit receivables increased to PLN 5.3 billion. At the end of December 2014, the value of clients’ deposits in Bank Pocztowy reached PLN 6.5 billion, i.e. 4.2% more than in the prior year. Stable retail deposits accounted for a major portion of the balance. At the same time, Bank’s clients opened 240,000 new current accounts.

Substantial changes have been introduced to our product offer and organizational structure. I would like to draw your attention to new products, to include a bank account with indefinite zero maintenance payment guarantee, the first one in Poland, loyalty programs for Konto Nestor or a new group of investment funds. The changes in our offer have been appreciated both by the market and clients, as proven by a number of awards granted to our products, in particular personal accounts and cash loans.

In 2014, we determined directions for the Bank Pocztowy Capital Group to be followed in the coming years, and adopted “Activation, profitability, education" strategy. For years, Bank Pocztowy has followed the mission described as simple and easily accessible banking, reflected in transparent communication and risky credit products denominated in foreign currencies being absent from its offer as a result of in-depth analysis of our clients’ needs and profiles.

Having adopted the strategy, we have also decided to refresh the logo of Bank Pocztowy. Now it is consistent with the logo of Poczta Polska and indicates our membership in the Poczta Polska Capital Group.

Bank Pocztowy has followed fair and transparent information policy including capital market players. We want to provide our stakeholders with reliable information that explains our financial standing, resources and future plans in a comprehensive manner, as confirmed by the first award in Best Annual Report contest for 2013. This is the second consecutive year when our Management Board’s Report on the Activities of the Bank was considered the best among Banks and Financial Institutions.

Our reliability and good reputation, appreciated also by investors and supported by promising growth perspectives, contributed to our successful issues of ordinary bonds of PLN 210 million and short-term bonds of PLN 120 million.

During the entire 2014, Management Board of the Bank was supported by the Supervisory Board, whose members were ready to cooperate and share their experience. I would like to express my gratitude to them. Further, I want to thank our Employees, whose professional approach and hard work have been reflected in our superb performance.

Now we are entering a new challenging year with stretch business goals determined. We plan to open 300,000 Pocztowe Konto ZawszeDarmowe and Nestor accounts. This will place us among top market players in terms of winning new clients. We plan rapid progress of cash lending campaign and conclusion of loan agreements for the total of PLN 1 billion. Further, we will introduce our own offer of investment funds, which will make our savings investment offer even more attractive for clients.

I strongly believe that we will succeed with implementation of these plans and in a year, I will be able to tell you that we have made another important step in implementing the long-term development strategy of Bank Pocztowy, bringing benefits to our stakeholders.

 

Yours faithfully,

Szymon Midera
Deputy Chairman of the Management Board
acting Chairman of the Management Board