ING Bank Śląski | Annual Report 2014


ING BANK ŚLĄSKIAnnual Report 2014

Operations of ING Bank Śląski S.A.

1. Retail banking

The aim of ING Bank Śląski S.A. is to maintain a strong position in the retail banking market. The key thing to accomplish this aim is an extensive and clear product offer with fair value for money, wide and innovative multichannel distribution network. Moreover, constant simplification and automation of processes as well as increasing the importance of internet and mobile banking play a vital role here.

In 2014 the main actions made to accomplish the strategic priorities were:

  • fully leveraging on distribution capabilities,
  • extending the functionalities of remote channels,
  • implementing new payment solutions,
  • providing customer with convenient on-line processes,
  • moving branches to an advisory role.

Such a strategy brought better sales results and higher deposit and lending balances. It was also reflected in cross-sell of additional products and also ensured better and more diversified income. Further, enhanced efficiency of face channels, the growing role of remote channels and operations automation led to cost effectiveness improvement.

Changes to product offer and customer service rules
Savings, investments, accounts

In March 2014, a PLN Individual Pension Security Account (IPSA) – a long-term savings product – was added to the Bank’s product offer. Within specified limits, amounts earned on the interest on the funds accumulated in an Individual Pension Security Account are exempt from tax on capital gains. 

With a view to upholding the attractiveness of its core deposit product, the Open Savings Account, in 2014 the Bank continued offering periodical, special terms and conditions for new funds under the special offer, i.e. Bonus for Start and Bonus Open Savings Account in successive rounds. They consisted in offering periodically higher interest to new clients or on new funds.

As regards investment products, to facilitate for clients management of their resources, the features of simplified navigation and mutual funds service in the ING BankOnLine system were implemented. The Bank also promoted investment in mutual funds, among other ways, by a special temporary offer that consisted in charging a zero distribution fee when Bank clients purchased participation units of all funds present in the Bank offer. 

Moreover, three new subfunds available under Altus Fundusz Inwestycyjny Otwarty Parasolowy (open-end umbrella fund) managed by Altus TFI S.A. were added to the offer dedicated to Personal Banking, Private Banking and Wealth Management clients. In turn, individual clients were offered new open-end mutual funds managed by Towarzystwo Funduszy Inwestycyjnych PZU S.A. – PZU Parasol FIO (open-end umbrella fund) and PZU Globalnych Możliwości SFIO (specialist open-end umbrella fund).

As of October 2014, clients may use the ING Securities brokerage account via internet banking. The Bank fully integrated the brokerage account with the current account online. It is a modern, intuitive and simple solution. In the internet banking system of ING Bank Śląski S.A., the Makler (Broker) module is now available 24/7 with all its functionalities.

In 2014, the Bank also held 40 subscriptions for the Investment Term Deposit structured product for the total amount of approx. PLN 800 million.

The Bank also standardised the offer of current accounts for Entrepreneurs by introducing a Direct Account for Businesses. This account replaced the previous four different accounts, offered to clients based on the legal form of their business (sole trader, civil law partnership, registered partnership or professional partnership with simplified accounting).

Lending products

In 2014, also the lending offer of the Bank was strongly developed as part of pursuing the strategy of constant growth of lending products exposure. It was supported with loan media campaign “Either we realise or we drift. Take out a loan and come out on top!” ran in May and June 2014, targeting individual clients and entrepreneurs. 

Fast track for cash loans available in the internet banking system was also introduced (preapproved offer). The offer is developed for a selected group of clients and it is presented once such client has logged into the ING BankOnLine system. The entire process is completed via ING BankOnLine in several brief steps. Analogical offer is also available in mobile banking. Furthermore, individual clients were offered more options  to apply for lending products under the short-track procedure.. 

The Bank also introduced new lending products for the entrepreneurs segment, namely: Credit Line for START and PREMIUM Offer. The Credit Line for START supports the process of opening company accounts at ING Bank Śląski S.A. while the PREMIUM Offer features higher unsecured cash loan amounts. The product supports the relationships with prestigious clients.

Moreover, in June 2014, as part of the offer tailoring to entrepreneurs’ needs, a new product – ING Auto – was launched in ING BankOnLine in cooperation with ING Lease. Subsequently, in September 2014, the ING Professional programme was activated consisting in the lease of medical, IT/office equipment, passenger cars and heavy goods vehicles up to 3.5 tonnes for Professionals.

The Bank also continued offering attractive pricing conditions in the mortgage loan offer. In June 2014, the Live without Compromise special offer of mortgage loans for young people was introduced. As part of this offer clients take advantage of attractive pricing conditions – 0% commission for loan provision and a fixed margin of 1.65 p.p. In order to use the promotion a client has to hold or open a personal account with regular monthly inflows and buy a whole life insurance. The offer targets individual clients applying for at least PLN 100 thousand who will submit a mortgage loan application either on their own or with another person. Moreover, at least one of the borrowers must be no more than 35 years old (per year of birth) as at the application submission date. 

Moreover, in December 2014 there was a New Year’s Mortgage Loan Sale campaign. It consisted in selling mortgage loans with parameters similar to those under the Live without Compromise offer, without the client’s age restriction. The campaign was highly popular among clients.

Insurance products

The Bank’s aim is to provide clients with as wide as possible offer of financial products, including insurance products if complementary to the offer of clean banking products. Clients may purchase insurance with the Silver or Gold “Safe Cash Loan”. In H2 2014, the More for Less campaign was launched where insurance fees were reduced for higher-amount cash loans. 

The Bank also made the offer of insurance linked to personal accounts more attractive (liability insurance in private life, accident insurance) and of the insurance not linked to bank products (option for clients to buy travel insurance). 

Moreover, the Bank started preparations for implementing Recommendation U of the Polish Financial Supervision Authority by holding a cycle of training courses for employees, making it possible to obtain a license to offer individual insurance.


As at 31 December 2014, funds30 entrusted to ING Bank Śląski S.A. by retail clients totalled PLN 57,309.3 million, compared with PLN 50,222.7 million in December 2013 (up by 14.1%). Banking deposits constituted their main part.

In 2014, the Bank continued to build solid foundations for further growth, i.e. acquire stable deposits, especially of retail clients. As at the end of December 2014, retail deposits settled at PLN 50,140.9 million, or went up by 13.7% from the 2013 yearend. The result was reflected in an 8.4% share of the Bank in the household deposit market (versus 8.1% share as at the end of 2013).

The Open Savings Account is the main product where the retail clients deposit their funds. Over 2014, the value of funds accumulated in the Open Savings Account went up by 12.7% and totalled PLN 38,482.9 million. The amount of savings invested in mutual funds and off-balance sheet structured products also went up dynamically (by 17.3% from the 2013 yearend).

Throughout 2014, the array of settlement services rendered by the Bank to its retail clients grew significantly. As at the end of December 2014, ING Bank Śląski S.A. maintained 2,547 thousand personal accounts of retail clients (2,265 thousand individual clients and 282 thousand entrepreneurs) versus 2,361 thousand as at the end of 2013 (2,106 thousand individual clients and 255 thousand entrepreneurs). That means that throughout 2014, the Bank acquired in net terms 186 thousand personal accounts of retail clients. As a result of a higher number of personal accounts opened, the volume of funds deposited in these accounts grew significantly. In December 2014, PLN 7,792.1 million of funds were deposited therein, up by 19.9% from the end of 2013.

This was accompanied by the trend to change the structure of current accounts. Sales of the accounts, mostly Direct Accounts, together with the conversion by some clients from traditional personal accounts to internet accounts, made the number of Direct Accounts go up to 1,870 thousand in December 2014 (including 1,632 thousand accounts of individual clients and 238 thousand entrepreneurs’ accounts) from 1,614 thousand in December 2013 (1,412 thousand and 202 thousand, respectively). Thus, the share of Direct Accounts in the total number of retail personal accounts went up from 68.3% in December 2013 to 73.4% in December 2014.


As at the end of 2014, retail credit receivables totalled PLN 21,843.7 million. In 2014, the Bank’s credit exposure towards retail clients went up by PLN 3,428.1 million, or 18.6%. The Bank increased its share in the household credit receivables market to 3.8% (versus 3.4% in December 2013).

Mortgage loans prevailed in the Bank’s retail credit portfolio. As at the end of December 2014, total Bank’s receivables under mortgage loans were PLN 16,167.5 million compared with PLN 13,614.9 million as at the 2013 yearend (up by PLN 2,552.5 million, or 18.7%). 

According to the data published by the Polish Bank Association, in 2014 ING Bank Śląski S.A. was third on the market with a 11.2% share in the sales of housing loans for private individuals.

Furthermore, in 2014 the weight of unsecured cash loans became even more relevant in the Bank’s portfolio .. Through their intensified sales and active promotion in 2014, the cash loans extended totalled over PLN 2.7 billion, up by 32% when compared with the same period in the previous year. In December 2014, the value of loans and cash loans in the Bank portfolio was PLN 3,766.6 million and grew by 24.7% as compared with the 2013 yearend.

The value of retail leasing and factoring receivables has been also growing gradually – as at the end of 2014 it settled at PLN 225.1 million and it was 56.3% higher than as at the end of the previous year.

Bank cards

For many years now, ING Bank Śląski S.A. has been one of the main payment card issuers in Poland, the same goes for contactless cards. We were the first bank in Poland and one of the first banks in the world to introduce withdrawals from ATM with the use of contactless card. By the end of 2014, there were over 400 machines with this functionality and approx. 416 had the cash recycling service.

In H1 2014, one of the most important changes in the payment area was commercial implementation of ING by Visa digital wallet. This new method provides for making fast, easy and convenient card payments on the internet. 

In December 2014, the Bank offered a Visa NFC payment card. It is installed on SIM card in a mobile phone and allows contactless payments in shops and cash withdrawal in ING NFC-enabled ATMs. At the end of the year also a pilot programme of a new type of payments was introduced – BLIK – Polish Payment Standard. It is a convenient way of effecting payments, withdrawing cash from ATM and making internet payments via mobile phone. 

By the end of December 2014, ING Bank Śląski S.A. issued nearly 2.7 million payment cards to its retail clients, where 2.1 million accounted for contactless cards (Zbliżak paypass sticker included). To compare, in December 2013 Bank retail  clients held 1.9 million cards of this type.

29  Due to availability of more detailed product-related information, the description is made based on the data from the management information system.
30  Total value of deposits, structured products and mutual funds distributed by the Bank.
31  Due to availability of more detailed product-related information, the description is made based on the data from the management information system

2. Corporate Banking

Number of clients

In December 2014, 36.6 thousand corporate clients used the services of ING Bank Śląski S.A., including:

  • 32.3 thousand mid-sized companies,
  • 3.5 thousand mid-corporates, and
  • 804 strategic clients (capital groups).

Throughout 2014, the Bank’s corporate clients portfolio went up by 4.2 thousand entities.

Product offer and modifications introduced

When corporate clients choose their bank, they take into account not only reputation of a stable and trustworthy institution but also high quality of the offer. Service quality and customer satisfaction have been the Bank’s priority for years now. Customer satisfaction surveys are regularly held and their results confirm the right direction in which the Bank’s products and services evolve. Constant enhancements to the offer, process streamlining and distribution channels’ improvement are an inherent part of the Bank’s operations. 

The Bank continued to increase the number of available fee collection machines. These include special automatic tills thanks to which clients can pay some of administration fees conveniently, efficiently and quickly. ING Bank Śląski S.A. has the biggest network of such devices in Poland – by the end of 2014 there were already 14 fee collection machines. Moreover, the Bank offer its clients 108 electronic depositories. More and more clients also use the new cash solution – light depository. The device is installed in the client’s premises which makes transactions more convenient and safe. The deposits can be made 24/7 and are booked into the selected accounts as soon as they are deposited (on-line mode).

The service of remote account management called SMART was also made available. It lets clients manage their accounts open at other banks thanks to presentation of these accounts’ statements in the ING BusinessOnLine system. This solution significantly facilitates corporate clients to manage their funds deposited in many accounts, with many banks. 

The Bank actively supports its clients in their business transactions by offering them an easy and modern access to trade finance products. The clients enjoy fast access to those products via internet channel. In December 2014, over 97% of documentary credit applications were filed via ING BusinessOnLine system. For guarantees the index was 86%, while for applications for receivables purchase – 91%. At the same time the Bank recorded increased demand for trade finance products. In 2014, when compared to 2013, there were 15% more import documentary credits and 22% more guarantees issued and 50% more receivables were purchased. 

Moreover, in 2014 ING Bank Śląski S.A. continued to automate its lending processes. These actions bring notable benefits visible in the systematic increase in the share of electronic applications filed through the ING Direct Business Credit and ING BusinessOnLine in the total number of credit applications filed by companies. As at the end of 2014, the share totalled 83%.

At the beginning of the year the Bank introduced a new ING Monitoring credit application making it possible for the clients to monitor and repay on an ongoing basis liabilities towards the bank under active credit facility agreements via ING BusinessOnLine. As at the end of the year already 78% of clients could use the new solution. 

The ING Credit Management System (ING CMS) was also enhanced. In 2014, the new process for electronic conclusion of credit facility agreements was implemented in the Fast Track and Normal Track processes.In the ING CMS system, Bank representatives may put their electronic signatures. For this purpose, representatives of the client use the new functionality of the ING BusinessOnLine system. 

The ING BusinessOnLine system was enriched with new functionalities; among other solutions, the clients were offered electronic archives with scanned images of credit facility agreements concluded in the paper form and of other documents.

De minimis guarantees as part of the De Minimis Portfolio Guarantee Line as a form of support for SMEs and sureties as part of the Portfolio Surety Line, introduced at the Bank on 15 March 2013 under the agreement with Bank Gospodarstwa Krajowego (BGK), are still popular among clients, despite a commission for guarantee for BGK introduced at the beginning of the year. ING Bank Śląski S.A. maintains its fourth position on the guarantee market with a 9% share of the issued guarantees’ amounts. As at the end of December 2014, the Bank granted 1,301 guarantees for the amount of PLN 823 million and loans for the amount of PLN 1,566 million.

Deposits and settlements32

As at the yearend, the funds of the Bank corporate clients accumulated in those accounts totalled PLN 25,230.2 million, up by 7.9% from a year ago. Thus, the Bank had a 7.4% share in the institutional clients’ deposits market (the same as at the end of 2013).

Throughout 2014, the value of funds deposited by clients from the sub-segment of mid-corporate and mid-sized companies increased by 16.1%, whereas the value of funds deposited by the biggest corporate clients went down slightly by 0.8%.

The volume of funds in current accounts went up by 10.5%, mainly owing to the deposits of the biggest corporates, which grew by 29.0%. The value of funds in current accounts of mid-sized and mid-corporate companies did not change as compared to 2013 yearend.


As at the end of 2014, ING Bank Śląski S.A. maintained 109 thousand corporate (PLN and FX) current accounts, up by 11.3% from December 2013. The vast majority of clients with current accounts at ING Bank Śląski S.A. use the ING BusinessOnLine internet banking system to interact with the Bank. In December 2014, the system was used by 39 thousand companies (versus 35 thousand in December 2013).



Throughout 2014, corporate client funding by the ING Bank Śląski S.A. Group grew by PLN 4,625.5 million (up by 14.4%). The Bank is estimated to have held 9.0% of the institutional credit market share in December 2014. 

In the corporate segment, the volume of loans granted to the biggest companies, i.e. from the strategic client subsegment, was growing fast – increase of 15.6%, whereas funding for clients from the mid-sized and mid-corporate subsegment grew by 13.6%.

In 2014, the Bank won 97 tenders for funding local government units, worth approximately PLN 900 million. This result enabled the Bank to maintain its 7.5% share in financing local government institutions as at the end of December 2014.

32 Due to availability of more detailed product- and client-related information, the description is made based on the data from the management information system.
33 Due to availability of more detailed product- and client-related information, the description is made based on the data from the management information system.


3. Money markets and capital markets

The operations of ING Bank Śląski S.A. in the area of financial markets in 2014 covered adaptation to the changes in the market and in the regulatory environment, process optimisation and organisational changes.

In 2014, the Bank continued intense works on launching the option to clear transactions through Central Clearing Counterparty. These works are a step towards meeting by the Bank the requirements provided for in the Regulation of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories (EMIR for short). As part of those works, the Bank completed the tasks aimed at preparing its activity to satisfy the subsequent requirements set out in the EMIR regulations, taking effect as of 11 August 2014, (covering: reporting on transaction valuation and collateral to trade repositories). The Bank continued preparations to fulfil the requirements of clearing specified transactions through the Clearing House (the effective date of the clearing obligation in the EU is scheduled for Q1 2015).

The fact that in 2014 ING Bank Śląski S.A. signed a cooperation agreement with the London Clearing House (LCH) being the leader on the world markets and that it is the only Polish member bank is worth highlighting. Owing to the LCH membership, it is possible to settle derivative transactions directly.

While expanding the Bank’s offer in electronic distribution and service channels, in 2014 the FX Trader platform in the ING BusinessOnLine system was enlarged with new features. New functionalities were made available so as to face up to clients’ expectations and the offer of competitors. They are also another step towards our goal of being “the best internet bank on the market”.

The most important changes include:

  • introduction of the option of partial rollback for FX Forward and NDF,
  • provision of an ongoing preview of the offered rate at the FX Trader platform,
  • introduction of the FX Alert service (text message/e-mail) with the option to set the alert regarding appearance of an expected FX rate on the FX Trader platform, and
  • addition of a tool allowing clients to independently perform an informative valuation of plain vanilla options and simple option strategies online (European options/ American options and Risk reversal/ Participating Forward strategies). The functionality also supports printout of the valuation made with its basic parameters, priced instrument payment profile and its brief description.

In 2014, the volume of transactions effected using the settlement limit on the FX Trader platform in ING BusinessOnLine went up, which confirms growing interest of corporate clients in electronic distribution channels for financial markets products.

As part of extending the offer with new currencies, at the beginning of February 2014, the Bank offered to corporate clients the option of concluding FX Spots, FX Forwards and negotiable deposits in CNY. The following currency pairs are available for FX transactions: CNY/PLN, EUR/CNY and USD/CNY. Clients may set up a CNY clearing account at the Bank, and later order and receive FX transfers and make Trade Finance payments. Clients may also order CNY transfers without having an account in that currency.

Additionally, in 2014 the Bank extended its offer for corporate clients with a new product – Business Structured Deposit. It combines the features of a traditional deposit and an investment product in the FX market. It is an alternative for negotiable deposits with the option to obtain higher interest. The product is addressed to clients with financial surpluses and specific expectations as regards FX rates during the deposit term. The return of all the capital entrusted is guaranteed at the maturity date, while the interest is paid according to the payment formula as agreed on with the client. 

Throughout 2014, ING Bank Śląski S.A. retained its strong market position in the issue arrangement and service for non-government debt securities for corporate entities. The Bank, among other things:

  • Co-arranged the bond issue programme for Enea S.A. company, for the amount of PLN 5 billion (the Bank acted as: Issue Arranger, Payment Agent, Depositary, Dealer and Calculation Agent),
  • Being a consortium leader, in cooperation with two banks, the Bank arranged the issue programme of corporate bonds of Zarządca Rozliczeń S.A. for PLN 1.65 billion. In this programme, the Bank acted as: Issue Arranger, Issue Agent, Payment Agent, Depositary and Underwriter,
  • Co-arranged the bond issue programme for Jastrzębska Spółka Węglowa S.A. for the amount of PLN 1.2 billion (the Bank acted as: Issue Arranger, Sub-Paying Agent, Sub-Depositary, Security Agent and Underwriter),
  • Arranged the issue programme for short-term Eurocash S.A. bonds for the amount of PLN 500 million, which three other banks joined. In this programme, the Bank acted as: Issue Arranger, Issue Agent, Payment Agent, Depositary and Dealer,
  • Arranged the bond issue programme for ABC Data S.A. for the amount of PLN 100 million (the Bank acted as: Issue Arranger, Payment Agent, Depositary and Dealer), and
  • Arranged independently 10 municipal bonds issue programmes for the total amount of PLN 232 million.

As part of the programmes under way, in November 2014, ING Bank Śląski S.A. arranged the 5Y bond issue programme for TAURON Polska Energia S.A. amounting to PLN 1.75 billion. It was the biggest corporate bonds issue in 2014 and the second biggest in the history of the domestic debt securities market – the investors’ demand exceeded the total of PLN 2 billion. ING Bank Śląski S.A. was the leader of the consortium offering securities.

As at 31 December 2014, ING Bank Śląski S.A. serviced securities trading of 97 issuers being corporates, banks and municipalities. The face value of debt securities of corporate issuers (banks and local government units excluded) issued through the agency of the Bank totalled PLN 10.4 billion, including PLN 6.7 billion due to short-term securities issue. This enabled the Bank to win the third place on the corporate debt securities market in December 2014 (with the share of 14.5%) and the first place on the short-term securities market (with the share of 35.2%).

In recognition of the trading on the corporate bonds market, ING Bank Śląski S.A. was honoured as a leader of the Treasury BondSpot Poland market and was awarded two prizes during the Warsaw Stock Exchange gala event summing up the 2014 trading year:   

  • for the biggest turnover on the cash market, and
  • for the biggest turnover on the market of conditional trades. 

Moreover, in 2014 ING Bank Śląski S.A. was ranked fifth (among 17 banks applying for the function) and was granted the 2015 Money Market Dealer status in the ranking by the National Bank of Poland assessing the banks’ activity in the money and FX markets. The Ministry of Finance also granted the Bank the 2015 Dealer of Treasury Securities status. ING Bank Śląski was ranked third among 16 aspiring banks.

As regards sales of structured products on the Polish market, the Bank kept its strong position and received an honourable mention in the Structured Retail Products sectorial ranking, winning the fourth place in the Best Selling Products category for the Investment Term Deposit Secure Interest 18 product and eight place in the Investment Term Deposit Secure Interest 21 product. In 2014, the market share in structured products sale was 10%, which stands for the third place.


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