Risk management

Credit policy

Retail clients

The amendments to the Group’s credit policy were related to changes in the Group’s credit portfolio and those observed in the banking market. The measures were taken to adjust the credit policy to the current client profile and the risk level of the client and optimize the loan granting process.

Moreover, the existing client classification to risk classes based on their employer (reduced risk employers or other employers) was no longer applied. The definitions of the existing and new client have been implemented with the new scoring model and amended credit policy. Appropriate parameters have been established for cash loans depending on client risk class.

The amended credit policy introduced different collateral requirements for credit exposures and credit approval processes for different amounts and for new and existing clients.

With the view to diversifying the Group's credit portfolio the Bank launched a low-amount product Pożyczka na Poczcie (Loan at the post office) in the maximum amount of PLN 3 thousand, the maximum amount based on a declaration of PLN 1 thousand and the maximum tenor of 12 months.

Debt collection

The Group sold one package of credit receivables. The agreement on the sale of credit receivables was concluded on 17 September 2015 with a securitization fund, which offered the best price in the tendering process. A package sold included 1,480 credit exposures with the nominal value of the principal of PLN 11.8 million and interest with other expenses amounting to PLN 7.5 million, whose substantial portion had been impaired (PLN 10.3 million). The gross profit on the sale of the package of exposures was PLN 987.2 thousand and was recognized under “Other operating revenue” in the income statement part of the financial statements.