ING Bank Śląski | Annual Report 2014

ING BANK ŚLĄSKI

ING BANK ŚLĄSKIAnnual Report 2014

Our achievements

1. Increase in number of clients

In 2014, ING Bank Śląski S.A. accelerated the growth rate of the number of clients serviced by the Bank. Throughout the year, the Bank’s client base went up by 191 thousand entities versus 164 thousand the year before. As at the end of December 2014, the number of Bank clients amounted to 3,765 thousand and it was broken down into the following segments: 

  • 3,728 thousand retail clients, including: 
    • 3,451 thousand individual clients (up by 162 thousand clients throughout the year), 
    • 277 thousand entrepreneurs
  • 37 thousand corporate clients (mid-sized and mid-corporates and capital groups) 

The constantly growing number of ING Bank Śląski S.A. clients (both individuals and businesses) is the result of the activities pursued by the Bank to reinforce long-term relationships with clients. These relationships are based on the trusted brand of the Bank, transparent product offer tailored to the ever-changing preferences of clients and a continuously developed modern distribution and customer service system.

2. Better position on credit market

As at the end of December 2014, total net loans and other receivables to customers of the ING Bank Śląski S.A. Capital Group amounted to PLN 57,130.9 million, up by PLN 8,578.8 million (or by 17.7%) from the end of 2013.21 

The Capital Group was estimated to have a 5.7%-share in the total amount of loans extended to clients as part of the commercial banks sector22 (up by 0.5 p.p. from the end of 2013).

The improvement in the position of the Bank Capital Group on the credit market was due to:

  • Dynamic growth of credit receivables from households. In December 2014, credit receivables from households totalled PLN 22,318.5 million, up by PLN 3,798.1 million (or by 20.5%) from the end of 2013. In 2014, it was still the PLN mortgage loan that was the dominant product in the retail segment decisive for the growth of credit receivables. As at the end of December 2014, the PLN mortgage loans amounted to PLN 14.841.9 million (up by 21.2% when compared with the 2013 yearend); however, the relevance of cash loans is growing, as they went up by 24.7% throughout the year, and their volume amounted to PLN 3,766.6 million. 
  • A dynamic increase in corporate (institutional23) clients exposure – the Group’s respective credit receivables amounted to PLN 34,812.4 million as at the end of December 2014, up by 15.9% from the end of 2013.

21  This amount covers net loans and other receivables, except for Eurobonds and receivables from customers under repo transactions.
22  The banking sector meaning the commercial banks sector in line with data published by NBP in the Assets and liabilities of banks file
23  In total for the business entities, non-monetary financial institutions, central and local government agencies.

Loans and other receivables to customers of ING Bank Śląski S.A. Capital Group
​(PLN million)
  31.12.2014 31.12.2013 31.12.2012 31.12.2011 31.12.2010 31.12.2009 31.12.2008 31.12.2007
                 
Credit receivables from households, including: 22,318.5 18,520.4 16,551.9 14,938.3 12,311.4 9,566.5 7,260.8 4,712.4
Loans and advances 21,844.7 18,348.0 16,444.3 14,921.4 12,304.8 9,562.2 7,256.5 4,706.6
Leasing receivables 423.3 140.0 87.6 0.0 0.0 0.0 0.0 0.0
Factoring receivables 50.5 32.4 20.0 16.9 6.6 4.3 4.3 5.8
Credit receivables from institutional clients24, including: 34,812.4 30,031.7 28,653.7 23,518.8 18,929.1 17,137.7 16,669.9 11,666.7
Loans and advances 25,267.2 21,859.5 21,166.6 21,076.6 17,492.8 16,110.0 15,742.8 11,398.9
  - Business entities 20,830.5 17,775.1 16,543.8 14,986.0 12,095.1 11,266.3 11,866.7 8,505.8
  - Financial entities (other than banks) 1,777.5 1,457.1 1,533.2 2,821.5 2,583.1 2,543.8 2,923.1 2,226.8
  - Entities of the sector of central and local government agencies 2,659.2 2,627.3 3,089.6 3,269.1 2,814.6 2,299.9 953.0 666.3
Debt securities25 2,766.1 2,175.7 2,107.6 2,086.8 1,177.7 643.4 640.5 0.0
Leasing receivables 3,912.3 3,450.8 3,076.9 0.0 0.0 0.0 0.0 0.0
Factoring receivables 2,766.0 2,421.4 2,182.7 255.5 116.1 168.8 160.3 122.8
Other receivables 100.8 124.3 119.9 99.9 142.5 215.5 126.3 145.0
Total net credit receivables 57,130.9 48,552.1 45,205.6 38,457.1 31,240.5 26,704.2 23,930.7 16,379.1
  - Eurobonds 3,923.9 3,685.8 3,779.7 3,872.6 3,268.5 3,261.9 1,654.0 0.0
Total net loans and other receivables to customers 61,054.8 52,237.9 48,985.3 42,329.7 34,509.0 29 966,1 25 584,7 16,379.1

24  Excluding receivables from customers under repo transactions.​
25  Eurobonds excluded.

3. Strengthening position on deposits market

The deposit base held by ING Bank Śląski S.A. is one of the largest in the Polish banking sector, which ensures high liquidity of the balance sheet and comfort as regards shaping the lending policy. Actions undertaken in 2014 led to further expanding the deposit base mainly as regards stable funds. It meant that the Bank actively acquired funds mainly from retail clients, but also from small and medium enterprises.

As at the end of December 2014, total funds accumulated in the accounts of the ING Bank Śląski S.A. Capital Group amounted to PLN 75,658.9 million26 as compared with PLN 67,547.9 million as at the end of 2013 (up by 12.1%).

As at the end of 2014, the Bank held 8.0% of the total value of funds deposited in the commercial banks sector27 as compared with 7.8% as at the end of 2013, which indicates that the Bank was the fourth largest deposit bank in Poland.

Throughout 2014, total funds deposited in household accounts went up by PLN 6,649.9 million, or by 15.2% and as at the end of December amounted to PLN 50,278.8 million.

The liabilities to institutional clients also went up; in December 2014, they totalled PLN 25,380.1 million versus PLN 23,919.0 million as at the end of 2013 (increase of 6.1%). Throughout 2014, there was an increase in the value of funds deposited by mid-sized and mid-corporate companies (up by 16.1%), while the value of funds deposited by the biggest corporates remained at a similar level (down by 0.8%).

26  The amount includes the deposits and other liabilities except for liabilities to customers under repo transactions.​
27  The banking sector meaning the commercial banks sector in line with data published by NBP in the file Assets and liabilities of banks.

Liabilities to customers of ING Bank Śląski S.A. Capital Group
​(PLN million)
  31.12.2014 31.12.2013 31.12.2012 31.12.2011 31.12.2010 31.12.2009 31.12.2008 31.12.2007
                 
Liabilities to households, including: 50,278.8 43,628.9 37,683.7 33,481.8 30,167.2 30,103.9 28,011.3 25,639.5
Term deposits 50,217.1 43,563.8 37,627.7 33,434.7 30,117.7 30,039.7 27,945.7 25,392.6
Other liabilities 61.7 65.1 56.0 47.1 49.5 64.2 65.6 246.9
Liabilities to institutional clients28, including: 25,380.1 23,919.0 20,214.7 19,378.8 17,281.0 17,215.2 18,898.6 18,007.0
Term deposits 24,188.6 22,980.2 19,206.9 18,944.4 16,767.2 16,722.3 18,372.0 17,559.9
  - Business entities 20,177.3 17,746.3 13,739.9 13,887.3 12,483.6 11,861.7 11,173.5 12,760.8
  - Financial entities (other than banks) 2,142.8 3,143.1 3,368.0 2,954.5 2,588.6 3,352.4 4,312.3 2,226.7
  - Entities of the sector of central and local government agencies 1,868.5 2,090.8 2,099.0 2,102.6 1,695.0 1,508.2 2,886.2 2,572.4
Other liabilities 1,191.5 938.8 1,007.8 434.4 513.8 492.9 526.6 447.1
Total liabilities to customers 75,658.9 67,547.9 57,898.4 52,860.6 47,448.2 47,319.1 46,909.9 43,646.5

28  Excluding liabilities to customers under repo transactions.

4. Best net financial result in Group track record

In 2014, the net profit of the ING Bank Śląski S.A. Capital Group totalled PLN 1,040.7 million, up by 8.2% from a year earlier. It was the best net financial result in the Group track record.

As at the end of December 2014, Return on Assets (ROA) was 1.1% (down by 0.1 p.p. versus 2013), while Return on Equity (ROE) settled at 11.1% (versus 11.6% a year earlier). At the same time, cost effectiveness of the Group improved – the cost/income ratio (C/I) was 54.4%, down by 1.7 p.p. than a year before.

The individual components of the result were described in Chapter Financial Standing of ING Bank Śląski S.A. Capital Group in 2014.

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