MANAGEMENT
BOARD REPORT
(including the Report of the Management Board
on the activities of BNP Paribas Bank Polska S.A.
in 2022)
ON THE ACTIVITIES OF
BNP PARIBAS BANK POLSKA S.A.
CAPITAL GROUP IN 2022
Introduction
About us
Environment
Strategy and
prospects
GObeyond Strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 2
Contents
Introduction 3
Letter from the Chairwoman of the Supervisory Board 4
Letter from the President of the Management Board 5
Key financial data 2018-2022 6
About us 7
The Group and the Bank 8
BNP Paribas Group worldwide 9
The Bank on the Warsaw Stock Exchange 10
Key events in 2022 13
The Bank in its environment 20
External environment 21
Stakeholder relations 27
Strategy and prospects 30
Business model and value creation for stakeholders 31
GObeyond 2022-2025 business strategy 33
ESG Management 35
Outlook 2023+ 39
Prospects 41
Strategy execution 43
Pillar UP 44
Description of segments 45
Distribution channels 52
Operations and business support 53
Entities of the BNP Paribas Bank Polska S.A. Group 54
Pillar POSITIVE 57
Sustainable financing 58
Taxonomic disclosures 67
Positive banking 69
Social involvement 75
The Bank of Green Changes 81
Pillar STRONGER 87
Digitisation and innovation - IT strategy 87
Supporting innovation 91
Cybersecurity 92
Pillar TOGETHER 93
Good place to work 93
Wellbeing and employee health 102
Employees development 103
A diverse and inclusive workplace 105
Financial results 109
Group’s financial results 110
Business segment performance 130
Bank's financial results 134
Risks and opportunities 147
Risk management system 148
Principal types of risk 150
ESG risk management 164
Climate-related risks and opportunities 168
Values and principles 173
Ethics in internal and external relations 174
Mechanisms for reporting irregularities 175
Counteracting corruption and conflicts of interest 176
Sustainable supply chains 177
Human rights 178
Litigation and claims 179
Compliance with laws and regulations 184
Corporate governance 186
Compliance with corporate governance principles in 2022 187
Shares and shareholders 189
Statutory bodies of the Bank 190
Remuneration of the Management Board and Supervisory Board 204
Diversity policy 206
System of control and risk management in the process of financial statements
preparation 207
Information on certified auditor 208
About the Report 209
Scope of non-financial reporting 210
GRI Table 212
EU Taxonomy 214
TCFD recommendation 214
SFDR indicators (Sustainable Finance Disclosure Regulation) 214
Additional information 215
Post-balance sheet events 216
Statements of the Management Board of BNP Paribas Bank Polska S.A. 217
SIGNATURES OF MANAGEMENT BOARD MEMBERS OF BNP PARIBAS BANK
POLSKA S.A. 218
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 3
Rafał Piotrowski, Lead Architect
Introduction
Letter from the Chairwoman of the Supervisory Board 4
Letter from the President of the Management Board 5
Key financial data 2018-2022 6
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 4
Letter from the Chairwoman of the Supervisory Board
[2-22]
Dear All,
Behind us is a year that brought challenge after challenge. The war beyond our
eastern border has caused a huge humanitarian crisis and intensified the energy
and economic crisis triggered earlier by the pandemic. In this difficult
environment, marked by so many risk factors, it is essential to act prudently and
responsibly. We have seen how important it is to be able to quickly respond to
unforeseen market and sectoral challenges. Under the conditions of rapidly
rising inflation, additional challenges appeared, such as those related to the
introduction of credit holidays and reform of the WIBOR benchmark. Both the
management board and the employees of BNP Paribas Bank Polska showed that
they are able to meet these challenges, displaying great commitment and
flexibility in action, for which I would like to offer my sincere thanks on behalf of
the supervisory board.
In this difficult environment, BNP Paribas Bank Polska managed to achieve
growth in its business, generating very good results, particularly in the areas of
Corporate Banking and Wealth Management. Last year the bank’s operations
were recognized by independent groups of experts in a record-setting number of
competitions. Particularly noteworthy are first place in the Newsweek’s Friendly
Bank ranking in the Traditional Banking category, second place in the Business-
Friendly Bank ranking by Forbes, the prize for the best bank in the Private
Banking area in the Global Private Banking Innovation Awards, and the best ESG
risk rating among banks in Poland by the Sustainalytics agency.
The war launched by Russia in Ukraine reminded the whole world, and
particularly Europe, how vital the issues of energy diversification and security
are. The new REPowerEU programme was adopted, while dynamic changes in
ESG regulations are underway. Today, sustainability is a necessity, and an
integral element of building the value of companies. BNP Paribas Bank Polska is
among the firms for whom this is obvious. The GObeyond strategy for 2022-
2025, announced last year, confirms that social, environmental and governance
issues are closely tied to the bank’s identity and its business aims. Along with its
growing engagement, the bank is deepening its competencies as a trusted
companion providing clients the products, tools and knowledge they need,
supporting them in their transformation and together building a more
sustainable economy. The Sustainability Area, the only one of its kind on the
market, has operated at the bank for over a year, and over 150 staff have
completed the comprehensive educational programme the ESG Academy, gaining
the skills they need to implement principles of sustainable growth in their
operating areas within the bank. The volume of sustainable financing has
reached PLN 6.5 billion. The bank has expanded its offer to include further
products enabling financing to be tied to progress in ESG – alongside
Sustainability-Linked Loans and “green bonds,” we have begun offering ESG
rating-linked loans and established a partnership with the global ratings firm
EcoVadis.
Despite the difficult circumstances, the bank is consistently implementing its
internal transformation, including new technologies, streamlining of processes,
and broader application of the Agile methodology. In line with the GObeyond
strategy, the bank has undertaken a fundamental change in technology to
facilitate scaling of the business and reaching beyond the framework of
traditional banking services. The bank is not afraid of demanding changes – it is
improving and betting on the skills of the future, so that it can even more
precisely and quickly rise to the dynamics of the market environment and the
needs of clients, while constantly ensuring cybersecurity. This was confirmed by
awards last year: BNP Paribas Bank Polska won third place in the ranking of
Safest Banks in Central & Eastern Europe by Global Finance, and Magdalena
Nowicka, vice president responsible for the New Technologies and Cybersecurity
Area, was named a Digital Shaper in the category “digital transformation,” in
recognition of her active promotion of digital thinking in the organization,
implementation of state-of-the-art solutions, increasing security, and promoting
a greater presence of women in IT.
BNP Paribas Bank Polska is consistently engaged in significant social issues. An
example is the widely praised educational campaign carried out last year
together with Polish Red Cross – “First Aid for Humanity”, combining training in
both first aid and tolerance. The bank regularly supported those in need through
its own foundation, whose operations include both educational programmes and
coordination of the social engagement of employees of the bank and other BNP
Paribas companies in Poland. Last year, apart from continuing all of its existing
projects, significant assistance was organized for refugees from Ukraine. The
bank adjusted its product line accordingly, and also secured lodging and
assistance for colleagues from Ukrsibbank, a member of the BNP Paribas Group.
Thanks to creation of a special solidarity fund, over PLN 3 million was delivered
to experienced NGOs, including the Ocalenie Foundation, with which the bank
has partnered. Employees of the bank have also engaged in volunteer work for
persons fleeing the war. I am heartened to witness the attitude of solidarity on
the part of the bank as an institution and its employees. It shows that in both
business and social responsibility, the bank can rise to the current challenges
and truly be “The bank for a changing world.”
Lucyna Stańczak-Wuczyńska
Chairwoman of the Supervisory Board of BNP Paribas Bank Polska
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Values and
principles
Corporate
governance
About the
Report
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 5
Letter from the President of the Management Board
[2-22]
Dear Shareholders, Customers and Employees of BNP Paribas Bank Polska Capital Group,
The unpredictable environment and conditions in which we function as an
organization and as individuals have accompanied us without a break for the
past three years, since the start of the pandemic. In 2022, this unpredictability
took on a new context. The earlier geopolitical uncertainty turned into the war
that continues beyond our eastern border, directly or indirectly impacting
virtually every aspect of our life and work.
Under the conditions of instability, uncertainty about how the conflict will
evolve, and the shaken economy, we as an industry must unfortunately also
struggle with challenges unique to Poland. In 2022, banks’ results were dragged
down due to unprecedented decisions taken without the involvement of the
banking sector, often dictated by a short-term perspective, with dangerous
consequences for the economy in the medium to long range. Those taking
decisions imposing further financial burdens on banks seem to forget that
whether we will be in a position to finance the economy, survive the tough times
and return to the path of growth depends on the banks’ supply of capital and the
stability of the overall banking sector.
Despite such a difficult environment, we have achieved results confirming that
we chose the right growth strategy. Loan volumes grew 4% y/y, and deposits 18%
y/y. Total assets at the end of the year exceeded PLN 151 billion. In 2022, the net
banking income was PLN 5,352 million and net profit PLN 441 million. The
results were weighed down by PLN 895 million for credit holidays and a cost of
PLN 740 million for provisions against the legal risk of the CHF portfolio.
Excluding those elements, the results would be the best in the bank’s history.
The financial results do not fully convey the process of the qualitative changes
the bank is undergoing. We have consistently realized the initiatives and aims
set forth in the GObeyond strategy announced at the beginning of 2022. They are
centred on the Customer and the Customer’s needs. Our efforts in this respect
are appreciated. The Polish editions of Newsweek and Forbes, organizers of the
most prestigious rankings of the country’s banking sector, recognized BNP
Paribas Bank Polska in the Traditional Banking category of the Newsweek’s
Friendly Bank ranking and in the Business-Friendly Bank ranking by Forbes. The
development of digital competencies, a priority of our strategy, has supported
the growth in the number of customers using remote channels (+7% y/y, to 1.6
million at the end of 2022) and the number of transactions.
For us, 2022 was also the first year of functioning of the Sustainability Area,
which was established as a consequence of the bank’s focus on ESG aspects and
engagement in the mission of sustainable growth. The volume of sustainable
finance reached a record PLN 6.5 billion as at the end of the year. This is the
effect of steady growth in the offer of products and services friendly to the
environment and society, including innovative SLL financing (sustainability-
linked loans). Our commitment in the area of ESG was confirmed by the ESG Risk
Rating of 10.9 awarded to us in September by Sustainalytics — the best result
among Polish banks rated so far by that agency.
The Polish economy and banking sector are at a difficult moment. 2023 will be
marked by a slowdown in economic growth. Although a recession is not the most
likely scenario, it remains possible, and we cannot expect a revival until the next
year, 2024. One of the key factors influencing this is obviously the war in Ukraine
and the macroeconomic instability it provokes. This is beyond our control. I
would nonetheless like to believe that in such turbulent times, both the Polish
economy and the banking sector will not have to deal with avoidable challenges.
The banks are ready to support customers and the economy, and in the future to
participate in the activities of Polish firms rebuilding Ukraine. But for that to
happen, we must be given a chance to strengthen the capital base, to operate in
predictable regulatory conditions, without unexpected additional burdens. I hope
that is possible this year.
Przemek Gdański
President of the Management Board, BNP Paribas Bank Polska
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Values and
principles
Corporate
governance
About the
Report
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 6
Key financial data 2018-2022
2022
2021
2020
2019
2018
Statement of financial position (PLN million)
Total assets
151,517
131,777
119,577
109,954
109,023
Loans and advances to Customers *
90,040
86,299
75,637
73,811
73,414
Total equity
11,262
11,362
12,031
11,159
10,560
Amounts due to Customers
120,021
101,093
90,051
86,135
87,192
Statement of profit or loss (PLN million)
Net profit
441
176
733
615
360
Normalized net profit **
1,166
176
721
950
576
Net interest income
3,493
3,141
3,060
3,169
2,107
Net fee and commission income
1,137
1,049
916
820
567
Net income on banking activity
4,809
4,705
4,550
3,289
Result on provisions for legal risk related to
foreign currency loans
(740)
(1,045)
(168)
(32)
-
Net result on impairment losses on financial
assets and provisions for contingent
liabilities
(275)
(266)
(601)
(442)
(558)
General administrative expenses,
depreciation and amortization
(3,038)
(2,544)
(2,506)
(2,922)
(2,049)
Financial ratios (%)
Net ROE
3.9%
1.5%
6.3%
5.7%
4.8%
Net ROA
0.3%
0.1%
0.6%
0.6%
0.5%
Cost / Income (C/I)
56.8%
52.9%
53.3%
64.2%
62.3%
2022
2021
2020
2019
2018
Normalized net ROE **
10.2%
1.5%
6.2%
8.9%
6.5%
Normalized net ROA **
0.8%
0.1%
0.6%
0.9%
0.6%
Normalized Cost / Income (C/I) without BFG
and IPS **
42.9%
49.9%
49.0%
51.7%
51.1%
Net interest margin
2.46%
2.51%
2.63%
2.92%
2.65%
Share of impaired receivables
(NPL ratio) ***
3.3%
3.6%
5.4%
5.7%
5.6%
Cost of risk
(0.30%)
(0.32%)
(0.78%)
(0.59%)
(0.96%)
Total capital ratio
15.55%
16.91%
18.65%
15.05%
14.63%
Tier I capital ratio
11.27%
12.33%
13.55%
12.80%
12.38%
Information on shares
Stock market capitalization (PLN million)
8,265
13,454
9,376
10,024
7,150
Number of shares (million)
148
148
147
147
147
Year-end share price (PLN)
56
91
64
68
49
Business information (thousand)
Number of Bank Clients, including:
4,186
4,117
3,938
3,887
3,783
Individual Customers
3,874
3,810
3,639
3,601
3,493
Corporate Customers
312
307
299
286
290
* Net values, including loans measured at amortized cost and at fair value.
** Normalized values calculated excluding loan holidays, integration costs incurred in connection with the implementation of the merger processes in 2016-2020. From 2020 onwards, provisions for
proceedings relating to CHF housing loans are presented as a separate line apart from income, this change has also been included for 2019.
*** Applies to portfolio measured at amortised cost.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 7
Katarzyna Legut-Wturska, Business Banking Manager
About us
The Group and the Bank 8
BNP Paribas Group worldwide 9
The Bank on the Warsaw Stock Exchange 10
Key events in 2022 13
Introduction
About us
Environment
GObeyond strategy
execution
Risks and
opportunities
Values and
principles
About the
Report
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 8
The Group and the Bank
[2-1] [2-6]
BNP Paribas Bank Polska S.A. (hereinafter: the Bank) is a universal bank.
Individual Customers are offered a selection of savings and investment products as well as a wide range of loans, including
housing and consumer loans. Our comprehensive offer addressed to private banking Customers is aimed at the protection,
optimisation and multiplication of assets. The Bank's Customers can also take advantage of investment advisory services.
We provide micro, small and medium-sized enterprises as well as corporations with local and international financing
solutions. Our services are also addressed to enterprises from the agri-food sector. We specialise in financing agriculture,
the food economy and regional infrastructure.
We have been active in the Polish market for over a hundred years. Our ties with the global BNP Paribas financial Group
enable us to apply the best international practices. Thus, we can meet the needs of the local market and the expectations
of the Bank's Customers. We provide our services all over the country through a network of Bank branches, partner
branches, as well as online and mobile banking. We also cooperate with partner stores and selected car dealers.
As the Bank of Green Changes, we support our Customers’ transition to a low-carbon economy and inspire them to make
responsible financial decisions. We consistently pursue a strategy of financing investments with a positive social, economic
and environmental impact.
The Bank and its subsidiaries form the BNP Paribas Bank Polska S.A. Capital Group (hereinafter: the Group), which ranks
sixth as regards balance sheet total in the domestic banking sector. Employment in the Group expressed in FTEs is 8.5
thousand.
The Bank is part of the international BNP Paribas Banking Group (hereinafter: BNP Paribas Group).
The shares of BNP Paribas Bank Polska S.A. are listed on the Warsaw Stock Exchange.
The Bank's head office is located in Warsaw, at 2 Kasprzaka Street.
Market shares
Table 1. Market shares of BNP Paribas Bank Polska
31.12.2022
31.12.2021
Loans to non-bank Customers
6.1%
6.0%
Loans to individual Customers
5.6%
5.4%
Non-financial business entities
9.2%
9.1%
Deposits from non-bank Customers
6.2%
5.6%
Individual Customer deposits
4.8%
4.7%
Non-financial business entities
10.3%
9.1%
In the “Loans to non-bank Customers” category, the Bank's share in the sector was 6.1% at the end of 2022, compared to
6.0% at the end of 2021. This increase was mainly due to strong growth in the Bank's share of loans to enterprises (with
high double-digit growth in their volume at the Bank), accompanied by high growth in the share of PLN residential loans to
individuals (associated with both their slow-growing volume at the Bank and declining volume in the sector), and solid
growth in the share of the less volume-significant consumer loans segment (largely associated with their declining volume
in the sector and modest growth at the Bank).
The Bank's share of non-bank Customer deposits recorded an increase to 6.2% from 5.6% at the end of 2021. This occurred
mainly as a result of dynamic growth in the share of term deposits of private individuals, supported by strong growth in the
share of corporate deposits.
Group structure and subsidiaries subject to consolidation
BNP Paribas Bank Polska S.A. (hereinafter: the Bank) is the parent company of the BNP Paribas Bank Polska S.A. Capital
Group (hereinafter: the Group) operating in Poland. Subsidiaries that constituted a part of the Group as of the end of
December 2022 (fully consolidated) are listed below. The Bank's share in the equity of individual subsidiaries is provided in
percentage values:
Introduction
About us
Environment
GObeyond strategy
execution
Risks and
opportunities
Values and
principles
About the
Report
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 9
Structure of the BNP Paribas Bank Polska Group
* BGZ Poland ABS1 DAC („SPV”) - An SPV company with which the Bank performed a securitisation of a part of the loan portfolio. The Group has no equity contribution in this entity.
The company is controlled by Bank BNP Paribas S.A. due to the fulfilment of the control conditions only within the understanding of IFRS 10
Group structure changes in 2022:
On 28 January 2022, the Extraordinary Shareholders’ Meeting of BFN ACTUS Sp. z o.o. adopted a resolution to dissolve the
company by way of liquidation. As of 1 February 2022, the company changed its name to Bankowy Fundusz
Nieruchomościowy Actus Sp. z o.o. in liquidation.
On 1 March 2022, the Extraordinary Shareholders’ Meeting of BNP Paribas Solutions Sp. z o.o. adopted a resolution to
start the liquidation process of the Company. The name of the company was changed to BNP Paribas Solutions Sp. z o.o.
in liquidation. On 14 November 2022, the company was removed from the National Court Register. On 24 November 2022,
the removal of BNP Paribas Solutions Sp. z o.o. from the National Court Register became effective, ending the liquidation
process.
Apart from the Group's subsidiaries, at the end of December 2022, the Bank had equity investments in infrastructure
companies, including Biuro Informacji Kredytowej S.A., Krajowa Izba Rozliczeniowa S.A., VISA Inc., Mastercard Inc. and
SWIFT. We also held minority, non-controlling shares, stocks or bonds convertible into stocks in several medium-sized
Polish enterprises. The value of these shares and minority interests is not significant given the scale of operations and
financial results of the Bank and the Group. These investments are financed from own funds.
All transactions between the Bank and related parties resulted from current operating activities and included primarily
loans, deposits, and derivatives transactions, as well as income and expenses from advisory services and financial
intermediation. Detailed information on transactions with related parties can be found in Note 52 to the Consolidated
Financial Statements of the BNP Paribas S.A. Capital Group. Bank Polska S.A. for the 12-month period ended 31 December
2022.
BNP Paribas Group worldwide
The Bank's strategic shareholder is the leading international banking Group, BNP Paribas, which operates in three key
areas:
Commercial, Personal Banking & Services - services provided by the sales network and specialised business units,
Investment & Protection Services - savings, investment and insurance services,
Corporate & Institutional Banking - services for corporate and institutional Customers.
The BNP Paribas Group supports its individual Customers, entrepreneurs, local government units, small and medium-sized
enterprises, corporations and institutions in the implementation of projects by offering them a range of financial,
investment, savings and insurance products.
The BNP Paribas Group operates in 65 countries and employs almost 190,000 people, including 148,000 in Europe.
In 2022, the Group began implementing the GTS strategic plan for 2022-2025. The strategy is built on three pillars: growth,
technology and sustainability.
Aims of the BNP Paribas Group’s GTS strategy:
GROWTH – further development of profitable business operations based on the leading position of the BNP Paribas Group
in Europe,
TECHNOLOGY – technology supporting Customer experience and operational efficiency,
SUSTAINABILITY – focusing the Group’s business activities on supporting the financing of sustainable development.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 10
The Bank on the Warsaw Stock Exchange
Shareholder structure
On 31 December 2022, two of the Bank’s shareholders held at least 5% of the total number of votes at the General Meeting:
BNP Paribas and BNP Paribas Fortis SA/NV. In total, they held 87.40% of the votes. The remainder of the Bank's shares, i.e.
12.60%, was in free float.
Changes to the Bank's shareholder structure in 2022 are described in the “Shares and shareholders” section.
The Bank's shares are listed on the Main Market of the Warsaw Stock Exchange since 27 May 2011 (the debut of Bank
Gospodarki Żywnościowej S.A.).
Chart 1. Shareholder structure as of 31 December 2022
Total number of shares – 147,593,150
Stock quotes
The year 2022 brought a trend reversal and a downturn on the WSE. The outbreak of war in Ukraine, the deterioration of
the macroeconomic situation and economic growth outlook contributed to declines in share prices and major stock indices.
At the session on 30 December 2022, the closing price of the Bank's shares was PLN 56.00, down 38.60% compared to 30
December 2021 (PLN 91.20). During the same period, the value of the WIG-Banks index fell by 27.64%.
The first quarter of 2022 was characterised by increased price volatility, influenced by concerns over the approach to
tackling the COVID-19 pandemic, including the introduction of lockdowns and the beginning of negative macroeconomic
developments. After the initial increases seen in January (annual maximum for the Bank's share price on 12 January 2022:
PLN 97.00), the turning point was the outbreak of war in Ukraine resulting in the introduction of sanctions against Russia,
the emergence of further disruptions to global supply chains and fuel and energy prices. The stock market downturn
contributed to a 23.25% drop in the Bank's share price (to PLN 70.00) in the first quarter. The value of the WIG-Banks index
fell by 11.54% in the first quarter.
The second quarter of 2022 has already seen a clear downward trend in bank shares caused, among other things, by a
significant deterioration in macroeconomic data, including a major increase in inflation, an outflow of foreign capital as a
result of the growth of geopolitical risk in the region, and banks incurring the costs of setting up the Commercial Bank
Protection Scheme as well as the announcement of an initiative allowing Customers to suspend the performance of their
mortgage contracts (credit moratoria), translating into high costs and an expected deterioration in the performance of the
banking sector. As a result, the Bank's share price fell by 20.57% to PLN 55.60 in the second quarter of 2022 (with the WIG-
Banks index falling by 28.62%).
The decline in prices continued in the third quarter of 2022 (a 16.22% fall in the value of the WIG-Banks index). The
continuation of the poor sentiment towards bank shares was related, among other things, to the quantification of the
burden on earnings from the negative impact of the credit moratoria introduced by law. The Bank's share price fell by
6.83% to PLN 51.80 in the third quarter of 2022. On 16 and 19 September 2022, the annual minimum of the Bank's share
price was recorded, at PLN 46.70.
Chart 2. Quotations and trading value of the Bank's shares from 30.12.2021 to 30.12.2022
BNP Paribas
63.35%
BNP Paribas
Fortis
24.05%
Other
12.60%
free float
12.60%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
30
35
40
45
50
55
60
65
70
75
80
85
90
95
100
Turnover (PLN ths)
Share price (PLN)
Turnover
Closing price
ISIN code
WSE Ticker
abbreviation
Index membership
PLBGZ0000010
BNPPPL
BNP
mWIG80 i mWIG80TR
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 11
The reversal of the downward trend did not occur until the fourth quarter of 2022. The WIG-Banks Index reached its annual
minimum at the beginning of the quarter (10 October 2022) and its value increased by 36.8 per cent in the quarter. Most of
the known negative factors were discounted and factored into the banks' prices in the third quarter of 2022, opening up the
possibility of a change in the trend.
The average daily price of the Bank's shares in the following quarters was: Q1 2022: PLN 81.15 and Q2 2022: PLN 63.22, Q3
2022: PLN 53.34, Q4 2022: PLN 53.97.
2022 brought a decline in investor activity as the stock market deteriorated. The average daily trading volume was 9,496.20
shares in Q1 2022, 3,174.47 shares in Q2 2022, 10,307.65 shares in Q3 2022 and 3,345.84 shares in Q4 2022. Overall, the
average trading volume in 2022 was 21.95% lower than 2021 (6,518.24 versus 8,351.63).
Together with the decrease in the share price, this was reflected in changes in the average daily trading value, which in the
quarters under review amounted to, respectively: PLN 769.71 thousand, PLN 199.70 thousand, PLN 545.47 thousand and
PLN 181.01 thousand. On the session of 3 August 2022, the annual maximum trading volume was recorded: 105,494 shares,
and on the session of 4 January 2022 the annual maximum trading value was recorded: PLN 7,582.00 thousand.
Chart 3. Change in share price of the Bank vs. WIG-Banks from 30.12.2021 to 30.12.2022 (30.12.2021 = 100%)
Table 2. Key information on BNP Paribas Bank Polska S.A. shares
2022
2020
2019
change
2022/2021
Share price at the end of the year (PLN)
56.00
91.20
63.60
(38.6%)
Average share price (PLN)
62.92
74.18
52.23
(15.2%)
Maximum share price (PLN)
97.00
100.50
78.60
(3.5%)
Minimum share price (PLN)
46.70
58,00
33.10
(19.5%)
WIG-Banks value at year-end (points)
6,251.97
8,640.27
4,765,33
(27.6%)
Number of shares at year end (units)
147,593,150
147,518,782
147,418,918
74,368 / 0.1%
Capitalisation at year-end (PLN
thousand)
8,265,216
13,453,713
9,375,843
(38.6%)
Average trading volume per session
(units)
6,518.24
8,351.63
3,164.17
(22.0%)
Average value of trading per session
(PLN thousand)
420.87
652.14
155.94
(35.5%)
Earnings per share (PLN)*
2.99
1.20
4.97
1.79
P/E* ratio
18.72
76.31
12.79
(57.59)
Book value per share (PLN)*
76.31
77.02
81.61
(0.71)
P/BV* ratio
0.73
1.18
0.78
(0.45)
* calculation on a consolidated basis
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
BNP PBP
WIG-Banks
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Ratings
In 2022, the Bank was rated by the Fitch Ratings agency (ordered by the Bank). A history of the agency’s ratings can be
found on the Bank's website: https://www.bnpparibas.pl/en/investor-relations/about-the-bank/ratings.
At the end of 2022, the Bank had the following ratings (confirmed in the Fitch Ratings statement of 16 December 2022):
Fitch Ratings
rating
Long-Term Issuer Default Rating (LT IDR)
A+" with a stable outlook
Short-Term Issuer Default Rating (ST IDR)
“F1"
National Long-Term Rating (Natl LT)
"AAA(pol)" with a stable outlook
National Short-Term Rating (Natl ST)
"F1+(pol)"
Viability Rating (VR)
“bbb-“
Shareholder Support Rating (SSR)
“a+”
The Bank's IDR and SSR ratings reflect Fitch Ratings' belief in a possible support from the Bank’s parent entity, BNP Paribas
SA (hereinafter: BNPP, A+ IDR, stable outlook). According to Fitch Ratings, the Bank's VR of "bbb-" reflects the Bank's
moderate franchise in the competitive Polish banking market as well as a traditional, well-balanced business model.
In August 2022, Fitch Ratings placed the Bank's Viability Rating on a watch list with a negative indication (Rating Watch
Negative). The placement of the Bank's VR on the watch list with negative indication was due to a deterioration in the
assessment of the operating environment in Poland (from 'bbb+' to 'bbb'), mainly as a result of the introduced credit
holidays for mortgages granted in PLN, the level of state interference in the banking sector's activities and the expected
economic slowdown. In December 2022, the Bank's Viability Rating was removed from the Watch List with a negative
indication (Rating Watch Negative) and the remaining ratings were confirmed at unchanged levels.
In September 2022, the rating agency Sustainalytics assigned the Bank an ESG Risk Rating of 10.9, indicating a low risk of a
material negative impact of factors related to the management of environmental and social impacts on the business ("Low
Risk"). The rating is the best score among Polish banks reviewed so far.
In 2022, Moody's Investors Service Agency assigned a rating to the Bank based on publicly available public information, i.e.
not solicited by the Bank. The Bank's ratings from Moody's Investors Service are available at: www.moodys.com.
Investor Relations
The Bank follows a transparent information policy to guarantee the highest standards of communication, taking into
account the information needs of capital market participants.
The Bank, as a public company and a supervised institution, provides information according to the principles of corporate
governance, in compliance with applicable laws. It grants capital market participants equal access to information on the
company's current operations, actions and financial results, fulfilling its obligation to inform in a way that opens the door
to reliable valuations of the Bank's shares.
Relations with shareholders, investors and other participants of the capital market are managed by a dedicated
organisational unit at the Bank: the Investor Relations Office. Important information for investors, the Bank's shareholders
and analysts is available on the Investor Relations website https://www.bnpparibas.pl/en/investor-relations.
In 2022, the Bank published a digital version of its annual report for the third time. The report for 2021 is available at:
https://raportroczny.bnpparibas.pl/en/.
At the end of January 2023, the Bank had 8 recommendations from financial institutions, of which 1 "Buy" and 7 "Hold". The
median target price from the recommendations was PLN 60.8 and the average target price was PLN 61.0, which was 8.5%
and 8.8% higher than the share price at 31 December 2022 (PLN 56.0), respectively.
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 13
Key events in 2022
The war in Ukraine - the Bank's quick and comprehensive response to the crisis situation
Simplified onboarding process with a dedicated service offer for Ukrainian citizens (Account for Now, website and online
banking in Ukrainian)
Social activities undertaken by the Bank and employees - providing accommodation, involvement of employees in
volunteering, fundraising among employees to purchase items needed by refugees, psychological support
Realisation of employee projects within the framework of the Volunteering#TogetherforUkraine initiative
Thematic webinars for employees as part of the wellbeing programme "GOOD" e.g. how to talk to children about war
Establishing, together with the BNP Paribas Foundation, a Solidarity Fund to support the families of Ukrainian employees
of BNP Paribas and Ukrsibbank
Financial support provided by the BNP Paribas Group to help refugees from Ukraine and social organisations working for
their integration in Poland
The impact of the war in Ukraine on the Bank's risk management is described in the Risks and opportunities section. The
impact of the war on the external environment in 2022 in particular on the economy, is described in the Macroeconomic
Situation section.
The potential impact of the war on the external environment, the economy and, subsequently, the Bank's and the Group's
operations and performance in future periods is described in the Outlook 2023+ section.
118.8 thousand
personal accounts opened for
Ukrainian citizens in 2022
114.7 thousand
number of Clients from Ukraine
acquired in 2022
305.7 thousand
personal accounts for Ukrainian
at the end of 2022
437.4 thousand
number of Clients from Ukraine
at the end of 2022
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Major corporate events
January 2022
4.01. - Extraordinary General Shareholders Meeting: adoption of resolutions,
inter alia, on:
- adoption for application by the Bank of the rules contained in "Code of Best
Practice for WSE Listed Companies 2021”
- adoption of the Policy for appointing and dismissing members of the Bank's
Supervisory Board and the Policy for assessing the adequacy of the Bank's
Supervisory Board members
- amendments to the Bank's Statutes and adoption of the Regulations of the
General Meeting.
18.01. - Ratings of the Bank assignment by Fitch Ratings
- Long-Term Issuer Default Rating (IDR) at “A+” with a stable outlook
- Viability Rating (VR) at “bbb-“
- Shareholder Support Rating (SSR) at “a+"
28.01. - The Extraordinary Shareholders' Meeting of BFN ACTUS Sp. z o.o.
adopted a resolution to dissolve the company by way of liquidation. As of 1
February 2022, the company changed its name to Bankowy Fundusz
Nieruchomościowy Actus Sp. z o.o. in liquidation.
February 2022
11.02. - The Polish Financial Supervision Authority (PFSA) imposed the capital
add-on recommended under Pillar II (P2G): The PFSA recommended that the
Bank should maintain own funds on an individual and consolidated basis to
cover the capital add-on (P2G) at 0.61 p.p. to absorb potential losses under
stress conditions.
March 2022
1.03. - Entry into the National Court Register of a part of the amendments to
the Statute of BNP Paribas Bank Polska S.A. adopted by the Extraordinary
General Meeting of the Bank on 4 January 2022.
21.03. - Strategy of BNP Paribas Bank Polska S.A. for the years 2022-2025.
The Bank's Management Board announced the main goals of the 2022-25
development strategy for the Bank and the BNP Paribas Bank Polska S.A.
Capital Group adopted by the Bank's Supervisory Board on 21 March 2022.
Key financial targets 2025:
- return on equity (ROE) ratio: ~12%
- cost/income ratio: max. 48%
- share of sustainable financing: 10%
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April 2022
4.04. - Issue of M series shares under the conditional share capital increase and
change in the value of the share capital of BNP Paribas Bank Polska S.A.
In accordance with the statements of the National Securities Depository (No.
513/2021 of 31 March 2021 and No. 311/2022 of 31 March 2022) and a
resolution of the Management Board of the Warsaw Stock Exchange (No.
348/2021 of 31 March 2021), on 4 April 2022, on the basis of the settlement
orders referred to in § 6 of the Detailed Rules for the National Securities
Depository, 74,368 M series ordinary bearer shares of the Bank were registered
in the NSD and admitted to trading by the WSE with a nominal value of PLN 1
each. Furthermore, series M shares were recorded on the eligible persons'
securities accounts.
Series M shares were subscribed for in exercise of the rights from previously
subscribed A2 series registered subscription warrants, each of whom entitled to
subscribe for one series M share.
At the same time, the Bank's share capital was increased from PLN 147,518,782
to PLN 147,593,150, which is divided into 147,593,150 shares with a nominal
value of PLN 1 each.
14.04 - Determination of the amount of annual contribution to the Banks' forced
restructuring fund for the year 2021 by the Bank Guarantee Fund (BGF) for BNP
Paribas Bank Polska S.A. in the amount of PLN 125,919 thousand.
May 2022
19.05. - Registration in the National Court Register of a part of the amendments
to the Articles of Association of BNP Paribas Bank Polska S.A., adopted by the
Bank's Extraordinary General Meeting on 17 June 2021.
23.05. - Decisions of the Polish Financial Supervision Authority to approve the
inclusion of net profit for 2021 in Tier 1 capital at separate (PLN 184,526
thousand) and consolidated (PLN 176,298 thousand) levels.
June 2022
3.06. - Determination of a minimum level of own funds and eligible liabilities
(MREL) by the BGF for the Bank on an individual level:
- 15.99% of the total risk exposure amount (TREA) and
- 5.91% of the total exposure measure (TEM).
This requirement should be met by 31 December 2023.
MREL interim targets: in relation to TREA the targets are: 11.99% as of the
date of receipt of the BGF letter and 13.99% at the end of 2022, while in
relation to TEM: 3.00% as of the date of receipt of the BGF letter and 4.46% at
the end of 2022.
7.06. - Consent to participate in the establishment of the Commercial Bank
Protection Scheme (IPS), referred to in Article 4(1)(9a) of the Act of 29 August
1997 – Banking Law
27.06. - General Shareholder’s Meeting
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July 2022
15.07. - Adoption of the Act on Crowdfunding for Business Ventures and
Assistance to Borrowers. This Act allowed persons repaying mortgage loans in
PLN to suspend the repayment of loan instalments and interest for a period of
four months in the current and following year (two months in Q3 and Q4 of 2022;
one month in each quarter of 2023).
PLN 895 million of credit holiday costs have been recognised by the Bank in 2022
net interest income.
29.07 - Registration in the National Court Register of amendments to the Articles
of Association of BNP Paribas Bank Polska S.A. regarding the increase in the
Bank's share capital to PLN 147,593,150 as a result of the acquisition of series M
shares by authorised persons.
August 2022
5.08. - Rating by Fitch Ratings: The rating agency Fitch Ratings placed the
Viability Rating (VR) of the Bank (“bbb-”) on Rating Watch Negative.
The Bank’s other ratings were unaffected by this action.
September 2022
9.09 - Registration in the National Court Register of amendments to the
Articles of Association of BNP Paribas Bank Polska S.A. adopted at the
General Shareholders Meeting of the Bank on 27 June 2022, regarding the
conditional increase of the Bank's share capital by issuing no more than
1,200,000 series N ordinary bearer shares.
14.09 - ESG rating by Morningstar Sustainalytics. BNP Paribas Bank Polska
S.A. has received a Sustainalytics’ ESG Risk Rating of 10.9, indicating a low
risk of material adverse impact of factors related to the management of
environmental and social impacts on the business ("Low Risk"). This rating
is the best score among Polish banks examined so far.
November 2022
24.11. - effective removal of BNP Paribas Solutions Sp. z o.o. from the National
Court Register completing the liquidation process
On 1.03, the Extraordinary Meeting of Shareholders of BNP Paribas Solutions Sp.
z o.o. adopted a resolution to open liquidation of the company. On 14 November
2022, the company was removed from the NCR register.
December 2022
16.12. - Rating by Fitch Ratings: the agency affirmed the Bank's Long-Term
Issuer Default Rating (IDR) at "A+", with a stable outlook and Shareholder
Support Rating (SSR) at "a+". The Viability Rating (VR) was affirmed at "bbb-"
and removed from Rating Watch Negative.
27.12. - The PFSA imposed the capital add-on recommended under Pillar II
(P2G): The PFSA recommended that the Bank should maintain own funds to
cover the capital add-on (P2G) – in the amount of 0.77 p.p. at the consolidated
level and 0.80 p.p. at the individual level – so as to absorb potential losses
resulting from the occurrence of stress conditions.
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Awards and distinctions
In 2022, the Bank and the BNP Paribas Foundation received numerous awards for their activity in the area of corporate
social responsibility and sustainable development. We are honoured and committed to further actions for the betterment
of the world around us.
January 2022
On January 20, the Bank was awarded the title of Top Employer Polska and the
Top Employer Europe certificate for the best standards in the area of human
resources management.
February 2022
The BNP Paribas Foundation was recognised by the Active Against Depression
Association for its support in reaching out to people experiencing mental
difficulties. The Foundation’s one-year partnership with the Association
(conducted within the "I support all year long“ programme) made it possible to
reach people experiencing emotional difficulties during the pandemic and offer
them psychological help.
March 2022
The Bank received the Ethical Company 2021 title in the Large Company
category for its efforts to build and strengthen an organisational culture based
on ethics and the principles of corporate social responsibility, thus standing out
amongst Polish enterprises.
The Bank was recognised in the seventh edition of the Institution of the Year
competition: it placed 5th in the annual ranking. The experts of the
MojeBankowanie.pl portal awarded the Bank in 4 categories: the best remote
service, the best service in a branch, the best bank for companies, and the best
remote account opening process. As many as 21 Bank branches were awarded
the title of the best bank branch in Poland.
April 2022
The campaign of the Bank and the Polish Red Cross "First Aid for Humanity"
received the "Ad of the day” title from the Campaign Live portal.
Przemek Gdański, the Bank’s president, took second place in the Banker of the
Year 2022 ranking of the Forbes biweekly.
May 2022
For the fourth time in a row, the Bank was listed among standout employers
as regards maturity in managing diversity and building an inclusive work
environment. In 2022, the list included 38 organisations that successfully
passed the Diversity IN Check survey conducted by the Responsible Business
Forum. For the first time, the organisers indicated the leaders: six companies
that achieved the highest score (above 80%). The Bank was among them.
The 20th jubilee edition of the “Responsible Business in Poland. Good
Practices” Report (prepared by the Responsible Business Forum) was
presented during the CSR Fair. Nine out of ten good practices submitted for
publication by the Bank were distinguished. Among these were: the creation
of a Sustainability Community at the Bank, an innovative loan linked to
sustainability goals (Sustainability Linked Loan), the Simple Language
programme, initiatives for diversity, social integration, accessibility and the
empowerment of women, the "Class" scholarship programme, the "I support
all year long" and the "AgroEmisja" greenhouse gas calculator.
The Bank received POLITYKA's Golden Leaf of CSR – the highest distinction
awarded by the editors of Polityka Weekly. For the eighth time in a row, the
Bank was recognised as a company maintaining the highest social
responsibility and sustainable development standards. We also won an
award in a new category, related to climate transformation: POLITYKA's
Green Leaf. In this year's edition, the Bank's sustainable products and
services were among the distinguished best practices related to the
implementation of the Sustainable Development Goals.
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June 2022
The Bank won second prize in the "Social media" category and a distinction in
the "Safe bank – best practices" category in the "Złoty Bankier 2022" ranking. It
is the largest review of the Polish banking sector, organised by Bankier.pl and
"Puls Biznesu".
The Bank took the podium three times in the Banking Stars 2022 ranking,
organised by Dziennik Gazeta Prawna and PwC consulting company. An
independent judging panel awarded the Bank third place in the growth, stability
and ESG categories.
Magdalena Nowicka, Vice-President of the Bank’s Management Board
responsible for New Technologies and Cybersecurity, was listed in the Digital
Shaper 2021, in the digital transformation category.
The Bank received an award in the "banking" category in the 20th edition of the
TechnoBiznes 2022 competition of the "Gazeta Bankowa" monthly for the
implementation of the Secfense technology.
The Bank was recognised in the 6th edition of "Employer of Tomorrow”, a
competition organised by the Polish Agency for Enterprise Development. The
Sectoral Competence Council of the competition awarded the Bank first place in
the Finance Sector category.
The “First Aid for Humanity” campaign created for the Bank and the Polish Red
Cross by VMLY&R Poland won two Bronze Lions – in the Design and Outdoor
categories – at this year's Cannes Lions advertising festival.
June 2022
The Bank was recognised for campaigns addressed to employees in the
Employer Branding Excellence Awards competition. We received the main prize
in the Internal Campaign category and a distinction in the Employer Branding
Innovation category for the “Mogę” (I Can) - communication of a new
organisational culture at the Bank” campaign. It promoted key values among
employees, including courage, cooperation, simplicity, transparency and
empowerment.
The Bank was the only one (out of several dozen participants) to receive a
maximum score in Cashless.pl'. Ranking of financial institutions supporting the
professional and social equality of the LGBT+ community.
In the ARC Market and Opinion survey, the Bank's Press Office was among the
top three in Poland. Honesty, responsiveness and availability are the most
important features of a press office according to financial journalists.
On 30 June, the Bank was placed at the forefront of the Ranking of Responsible
Companies for the fourth time in a row. It took second place in the general
classification and in the banking, finance and insurance category.
September 2022
The Environmental Finance magazine awarded BNP Paribas in the "Best
progress towards achieving zero emissions in the EMEA region” category. The
award shows appreciation for the Group companies’ efforts to support Clients
in their transition towards climate neutrality.
The Bank took third place in the 2022 Safest Banks in Central and Eastern
Europe ranking – a part of the 31st annual Ranking of the World's Safest
Banks conducted by Global Finance.
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October 2022
The Bank received an award in the LGBT+ Diamonds Awards 2022, in the
Employer of the Year Supporting LGBT+ category. The competition distinguishes
people and organisations who act and introduce substantial change to support
LGBT+ employees.
In the 21st edition of the Friendly Bank Ranking organised by Newsweek, the
Bank took first place in the Traditional Banking category for focusing on
Customers who value direct contact with an advisor and appreciate good service
in branches. The Bank was also named a "Company-Friendly Bank” and came
2nd in the 9th edition of Forbes’ rating.
The Group’s annual report received the main prize in the "Banks and financial
institutions" category of the 17th "Best Annual Report" competition organised by
the Institute of Accounting and Taxes. The Bank was among the winners for the
fourth time in a row. This year, the digital Integrated Report also received a
distinction.
RegAgri Explorer, a professional tool for estimating the long-term level of CO
2
absorption by the soil – provided by the Bank on the agronomist.pl portal – was
named the Innovative Agricultural Product of 2022 in the category “Programmes,
tools (including financial) and devices supporting farming or animal husbandry”
by the "Farmer" portal.
The Bank received the Izydor 2022 award for the most farmer-friendly company
in the category "Finance and insurance".
The Bank won the Red Hat Digital Leaders 2022 award for the Central Europe
region. The organisers expressed their appreciation for the GOonline platform,
which brought together over 80 microservices and integrated over 35 bank
systems within the agile methodology.
November 2022
The BNP Paribas Foundation was among the winners of the "DNA Award –
helping is in our genes" in the "Help for Ukraine" category. The competition was
organised by the Clean Air Foundation and the Positive Ideas Foundation.
The Bank’s campaign "Where are our female school patrons?" received 2nd
prize in the Equality category of the Effie Awards 2022 competition.
The Bank was a finalist in the 7th edition of the Festival of Responsible Films
"17 Goals”. It won in the “Enterprises, including corporate foundations”
category. The "Golden Shield" award was shared by two films:
#wspieramyfeminatywy and First Aid for Humanity.
The Bank was among the winners of the 16th Sustainable Development Reports
competition organised by the Responsible Business Forum and Deloitte. The
Bank's integrated report received a special award from the Warsaw Stock
Exchange, i.a. for meeting the highest standards in non-financial reporting.
December 2022
The first edition of the Diversity Card Awards recognised employers who
support diversity, equality and inclusion. The Bank won first place in the DEI
in business category (partnership subcategory) for activating people with
disabilities.
The Bank was recognised twice in the "ESG Leader" competition. We received
the Golden Award in the "Strategy" category for the 2022-2025 GObeyond
strategy, which integrates business goals with aspects of sustainability. In the
"Educational Program" category, the BNP Paribas Foundation received a
distinction for the "Class" scholarship program, which supports talented
primary schools graduates from smaller towns and has been active for nearly
20 years.
The "First Aid for Humanity" campaign, a cooperation between the Bank and
the Polish Red Cross won 1st prize in the MIXX FOR GOOD PURPOSE category
of the IAB MIXX Awards. The competition recognises the most inspiring,
creative and effective applications of the digital environment, and thus
strengthens the value of brands, companies and organisations, while also
showing possible paths to further changes.
In the "ESG Innovator 2022" competition, organised by the Polish ESG
Association, the Bank received the title of "ESG Visionary 2022" for "dispelling
ESG’s bad press, disseminating the idea of sustainability, assuming the role of
an educator, implementing innovation”.
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Krzysztof Żukowski, Head of CF Sales Network Department
The Bank in its environment
External environment 21
Stakeholder relations 27
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External environment
Macroeconomic situation
GDP
Last year, the Polish economy grew by almost 5%. In the fourth quarter alone, however, the annual GDP growth rate
decreased from 3.6% to 2.0%. On a quarterly basis, seasonally adjusted GDP fell by 2.4%. Although Poland avoided a
technical recession (two consecutive quarters of GDP decline in q/q terms), since April the activity of the economy clearly
slowed down. Detailed data on national accounts for the last months of 2022 will be published by the Central Statistical
Office at a later date, but it can be assumed that the very large decline in GDP q/q in the fourth quarter resulted from a
significant reduction in the level of inventories by companies. This may be evidenced by, for example, a decrease in the
volume of working capital loans for non-financial enterprises by almost PLN 16 billion. The dynamics of final demand, i.e.
consumption, investments and exports, also weakened in the last months of 2022, as indicated by data from industry,
construction and trade. The relatively weak economic situation at the beginning of the year and unfavourable base effects
will have a negative impact on the average annual GDP growth rate in the current year. According to our forecast, GDP
will increase by only 0.5% in 2023. The weaker than last year's data will be driven primarily by domestic demand,
dampened by rapid price growth and high nominal interest rates.
Chart 4. GDP growth
Business activity
In the fourth quarter of 2022, economic activity in Poland clearly weakened. Industrial production increased by 4% y/y
against 9.3% y/y in the third quarter. The factor supporting the increase in industrial production in Poland was primarily
the execution of outstanding orders, while new orders were significantly decreasing. Further deceleration in activity was
equally clear in the case of construction and assembly production, whose growth rate decreased to 2.4% y/y in Q4 from
3.4% in July-September. The slowdown in this area was greatly influenced by interest rate rises, which significantly
reduced the demand for housing loans from the middle of last year. Consumer spending on goods also declined. Retail
sales in real terms increased by only 0.8% y/y in the last months of 2022, compared to 3.4% y/y in Q3. Growing inflation
exceeding the rate of wage growth significantly reduced the purchasing power of households, suppressing consumer
demand at the end of last year.
Inflation
In 2022, CPI inflation increased very rapidly, moving significantly away from the NBP's inflation target (2.5% +/- 1 p.p.). In
Q4, CPI inflation accelerated to 17.3% y/y, compared with 7.7% in Q4 2021. The dynamic inflation acceleration in Poland in
2022 was largely due to the situation on global commodity markets. The increase in gas and oil prices in previous quarters
translates into higher fuel and energy prices. In addition, disruptions in supply chains continue, which, combined with the
aforementioned increases in commodity prices, translated into higher production costs and also contributed to the
acceleration of CPI inflation in Poland. In addition to external factors, internal factors also had a major impact on the
acceleration of inflation. According to the NBP, baseline inflation increased by more than 11% y/y in the fourth quarter. The
domestic factor that largely drove price growth was the historically high salary dynamics in the corporate sector. Salary
demands increased costs in companies, which were then passed on to consumers, driving up prices in Poland. Only in the
last months of 2022 has the dynamics of CPI inflation slowed down, although we believe that the peak of inflation is still
ahead of us. The inflation path in the following months will be shaped by global factors (commodity prices), domestic
salary and demand pressures, decisions on regulated prices (energy and gas) and indirect taxes (change in the anti-
inflationary shield).
5.3%
5.5%
5.5%
5.1%
5.2%
5.2%
4.2%
3.4%
2.6%
-7.8%
-1.0%
-1.8%
0.2%
12.2%
6.5%
7,3%
8.6%
5.8%
3.6%
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
I II III IV I II III IV I II III IV I II III IV I II III
2018 2019 2020 2021 2022
Individual consumption Public consumption
Accumulation Net export
GDP
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Chart 5. Registered unemployment rate
Monetary policy
Since October, the Monetary Policy Council (hereinafter: MPC) has kept the NBP interest rates unchanged, including the
reference rate of 6.75%. The Council estimates that the expected global economic slowdown, together with monetary
policy tightening by major central banks, will hajave a dampening effect on global inflation and commodity prices. In such
conditions, the significant tightening of monetary policy by the MPC will contribute to lowering inflation in Poland towards
the NBP's inflation target. According to the NBP President, the MPC has not completed the policy tightening cycle, but has
suspended it until the central bank's new macroeconomic forecast is presented in the March Inflation Report.
Chart 6. Inflation and interest rate
Bond market
In 2022, yields on 10-year Polish government bonds increased from 4% to around 7% by the end of last year. The decline
in the prices of Polish debt securities was dictated primarily by the MPC's continued cycle of interest rate increases. In
addition, Polish bond prices were negatively affected by the war in Ukraine and the lack of progress in negotiations with
EU institutions on the disbursement of funds from the National Reconstruction Plan (NRP). Yields on Polish government
bonds are also influenced by the situation on the base markets (the United States and the euro zone) and domestic
inflation as well as public debt. At the beginning of the fourth quarter, the risk premium for long-term Polish bonds
(measured by the spread over 10-year German bonds) reached 625 bps, compared with around 400 bps at the beginning
of the year. The situation only improved towards the end of the year, when the spread between Polish and German
government bonds fell to 420-430 bps.
6.8%
6.3%
5.8%
5.7%
6.1%
5.9%
5.6%
5.3%
5.0%
5.5%
5.8%
6.1%
6.8%
6.9%
6.4%
5.9%
5.9%
5.2%
5.1%
5.2%
4.5%
5.5%
6.5%
7.5%
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 1112 1 2 3 4 5 6 7 8 9 101112
2018 2019 2020 2021 2022
1.50%
1.50%
0.10%
0.10%
0.50%
1.25%
1.75%
2.75%
3.50%
5.25%
6.50%
6.75%
Reference rate, 6.75%
1.75%
1.75%
0.11%
0.11%
0.51%
1.80%
2.80%
4.55%
6.05%
6.55%
6.80%
Rediscount rate, 6.80%
2.50%
2.50%
1.00%
0.50% 0.50%
7.25%
Lombard rate, 7.25%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
2018 2019 2020 2021 2022
Inflation rate Reference rate
Rediscount rate Lombard rate
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Currency market
Chart 7. PLN exchange (monthly average)
In Q4 2022, the PLN clearly strengthened in relation to the major currencies. The EUR/PLN exchange rate decreased from
the level of 4.90 to around 4.70. In relation to the Swiss franc, the zloty's exchange rate fell from around 5.00 to around
4.70. The zloty strengthened to the greatest extent in relation to the dollar. The USD/PLN exchange rate fell to around
4.40 at the end of the year from a peak of 5.00 at the beginning of October. The appreciation of the PLN was the result of
an increase in risk appetite in the market due to the stabilisation of commodity prices. Moreover, the rise in EUR/USD also
contributed to the appreciation of the zloty. Further appreciation of the zloty may be limited by domestic factors such as
the suspension in the interest rate rise cycle, high core inflation and the lack of NRP funds.
Performance of the banking sector
Main categories of the banking sector profit and loss account
In 2022, according to preliminary data from the Polish Financial Supervision Authority (PFSA), the net profit of the banking
sector in Poland amounted to PLN 12.5 billion and was more than double the than the result achieved in the same period
last year (by PLN 1.65 billion, i.e. by 7.9%). The increase in net profit was mainly due to a significant increase in net
interest income and an increase in net fee and commission income, and occurred despite higher operating costs and the
recognition by banks of the negative impact of the credit moratoria (a programme allowing borrowers to suspend
repayments of selected 8 instalments of PLN housing loans, of which 4 instalments in 2022 and 4 instalments in 2023, but
the initial effect was recognised in full in 2022) booked partly in net interest income and mostly in modification income
(other result).
Net interest income amounted to PLN 76.0 billion and increased y/y by PLN 29.4 billion or 63.1%, mainly as a result of
interest rate rises (started in October 2021 and completed in September 2022, resulting in an increase in the NBP
reference rate from 0.10% to 6.75%). The effect was partly neutralised by the recognition by some banks of the impact of
the aforementioned moratorium. Net fee and commission income amounted to PLN 18.5 billion, up by PLN 1.43 billion or
7.6% y/y.
The increase in banks' operating expenses (including depreciation and amortisation and bank tax) by PLN 9.7 billion, or
24.2% y/y, was mainly due to an increase in existing regulatory costs as well as the appearance of a new contribution. The
sector as a whole was burdened by an additional contribution to the Borrowers' Support Fund (PLN 1.4 billion) and a
higher contribution to the Forced Restructuring Fund (which amounted to PLN 1.7 billion in 2022, compared with PLN 1.2
billion in 2021) as part of contributions to the Bank Guarantee Fund. However, the biggest additional burden on some
commercial banks has become the contribution to the established Commercial Bank Protection System. It amounted to
PLN 3.5 billion and was paid by the 8 largest commercial banks that are participants. Increases in salaries and other non-
regulatory general management costs caused by high inflation and rising energy prices also contributed to the increase in
operating costs.
The decrease in other income was mainly due to a decrease in modification income as a result of banks booking the
impact of the credit moratoria.
Other revenues fell y/y by PLN 4.8 billion due to the increasing legal risk of the foreign currency housing loan portfolio as a
result of a growing number of lawsuits and the continuation of a line of judgments unfavourable to lenders.
The burden on the result caused by impairment losses and provisions was at the same level as in 2021 and amounted to
PLN 15.5 billion. Net impairment losses increased by PLN 1.8 billion, or 25.1%, as a result of the deteriorating
macroeconomic situation caused, inter alia, by the war in Ukraine, while provisions decreased by PLN 1.8 billion, or 21.3%.
3.63
3.71
3.75
3.77
3.80
3.77
3.91
3.89
3.84
4.03
4.15
3.72
3.86
3.80
3.72
3.87
3.74
4.01
4.40
4.42
4.19
4.31
4.30
4.29
4.29
4.35
4.30
4.27
4.44
4.44
4.45
4.49
4.60
4.50
4.74
4.77
4.68
3.61
3.53
3.72
3.81
3.80
3.80
3.99
3.95
4.20
4.15
4.09
4.23
4.14
4.16
4.13
4.12
4.43
4.35
4.92
4.74
3.0
3.2
3.4
3.6
3.8
4.0
4.2
4.4
4.6
4.8
5.0
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
2018 2019 2020 2021 2022
USD/PLN EUR/PLN CHF/PLN
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Chart 8. Selected items of the profit and loss account of the banking sector (PLN billion)
Main categories of the balance sheet of the banking sector
The level of loans to non-bank Customers at the end of 2022 amounted to PLN 1,412 billion. The increase of PLN 33.1
billion, or 2.4% y/y, was lower than at the end of 2021. (PLN 66.3 billion, or 5.1% y/y). The main driver of the growth was
loans to corporates, which recorded a growth rate of 9.7% y/y against 4.3% y/y in the previous year. The decline in the
dynamics of total loans at the end of 2022 compared with the dynamics at the end of 2021 was determined by the
decrease in the volume of PLN mortgage loans for individuals (with high growth in 2021), accompanied by less significant
volume decreases in consumer loans and loans to individual entrepreneurs.
Chart 9. Loans to non-financial sector Customer (y/y dynamic)
Source: NBP
Loans to non-financial business entities at the end of 2022 increased by 5.2% y/y (2.8% at the end of 2021), mainly as a
result of the aforementioned dynamic growth in corporate loans (up 9.7% y/y) and despite a further decrease in loans to
individual entrepreneurs (to 10.0% against a 1.9% y/y decrease at the end of 2021) and individual farmers (to 10.8%
against a 2.0% y/y decrease at the end of 2021).
The acceleration in growth of corporate loans was mainly due to the strong increase in investment loans (7.5% y/y against
a 2.1% y/y decrease at the end of 2021). Current loans continued to grow at a double-digit rate, however slower than at
the end of 2021 (13.3% vs. 14.2%). According to the NBP, the persistently high growth rate of corporate loans is a result of
the low reference base - these only exceeded their nominal pre-pandemic value in H1 2022. The high cost of credit and
uncertainty about the future economic situation (caused mainly by the war in Ukraine), as well as the unstable legal
environment, had a negative impact on investment loans of entrepreneurs and individual farmers. At the end of 2022, they
recorded an annual decrease of respectively 22.8% (-4.9% at the end of 2021) as well as 11.8% (-1.7% at the end of 2021).
-10%
-5%
0%
5%
10%
I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV
2016 2017 2018 2019 2020 2021 2022
Individual clients Non-financial business entities
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Chart 10. Loans to individuals (y/y dynamics)
Source: NBP
Loans to individual Clients decreased by 3.0% y/y against an increase of 5.8% at the end of 2021, driven by a decline in PLN
mortgage loans by PLN 6.3 billion or 1.6% y/y (against an increase of PLN 44.8 billion or 12.5% at the end of 2021). This
was accompanied by a decrease in consumer loans by PLN 5.8 billion or 2.8% y/y (against an increase of 2.1% y/y at the
end of 2021) and foreign-currency mortgage loans by PLN 9.1 billion or 8.2% y/y (-7.9% y/y at the end of 2021) in an
environment of depreciation of the PLN against CHF.
The decrease in the dynamics of PLN mortgage loans occurred, on the one hand, as a consequence of a deep decline in
demand caused, among other things, by: high and rising interest rates until September 2022; changes in household
consumption; the deterioration of the economic situation of households, accompanied by changes in their spending
structure, mainly related to high inflation; and the tightening by banks of the conditions and criteria for granting these
loans as a result of PFSA guidelines limiting the credit creditworthiness of potential borrowers. According to the Credit
Information Bureau (BIK), 63% less potential borrowers applied for a mortgage in December 2022 than in December 2021.
On the other hand, the decrease in the value of the mortgage portfolio was equally strongly influenced by early
repayments or full repayments, primarily linked to the aforementioned high interest rates, and supported by funds
released after the introduction of credit moratoria. According to BIK, the value of early repayments in 2022 was almost
twice as high as in 2021 and amounted to PLN 52.4 billion.
The decrease in consumer loans was mainly due to an increase in loan interest rates as a result of the rise in economic
interest rates and the worsening situation of households caused by the increase in prices of goods and services resulting
in a decrease in demand for consumer goods. According to the BIK, this occurred against the backdrop of a faster increase
in the number of loans granted up to PLN 5,000 than over PLN 50,000 meaning that loans were mainly taken out for
primary needs products.
Chart 11. Deposits from Customers of non-financial sector (y/y dynamics)
Source: NBP
At the end of 2022, non-bank Customer deposits grew by 5.7% y/y, compared with an increase of 10.9% at the end of 2021.
Both the dynamics of deposits from private individuals (to 4.4% y/y against 6.1% y/y at the end of 2021) and the dynamics
of deposits from non-financial businesses (to 8.0% y/y against 10.3% y/y at the end of 2021) slowed down.
The slower growth rate of retail deposits may have been the result of higher inflation, increasing the scale of basic
consumer spending and, consequently, lower Customer savings. High inflation and higher interest rates resulting in higher
interest rates on bank deposits changed the structure of deposits and translated into a dynamic increase in term deposits
(up 95.1% y/y at the end of 2022 against a decrease of 21.6% y/y at the end of 2021) with a decrease in current deposits
(up 14.5% y/y at the end of 2022 against an increase of 14.6% y/y at the end of 2021). Factors slowing deposit dynamics
were, in particular, the increased demand for so-called savings bonds related mainly to the new offer of 1-year floating
rate bonds (average monthly sales of savings bonds amounted to PLN 4.8 billion in 2022 against PLN 3.6 billion in 2021)
and increased share of real estate purchases from own funds. A factor supporting the dynamics of deposits was probably
the net balance of deposits and redemptions of investment funds (excluding PPK funds), which amounted to negative PLN
27.6 billion against a net balance of PLN 6.2 billion in 2021. - the decrease was mainly recorded by debt funds as a result
of interest rate rises and significant repricing of market debt instruments.
The slowdown in the growth rate of non-financial businesses' deposits was mainly due to a decrease in current deposits (-
4.9% y/y against an increase of 9.9% y/y at the end of 2021). At the same time, non-financial business entities' time
deposits increased by 84.8% y/y (against an increase of 12.4% in 2021) - driven by an increase in interest rates on term
deposits.
-20%
-15%
-10%
-5%
0%
5%
10%
I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV
2016 2017 2018 2019 2020 2021 2022
Consumer loans PLN mortgage FX mortgage
I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV
2016 2017 2018 2019 2020 2021 2022
Individual clients Non-financial business entities
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Chart 12. Deposits from individual Customers (y/y dynamics)
Source: NBP
Stock market and investment situation
In 2022, the WIG stock index, which represents all listed companies on the Warsaw Stock Exchange (WSE), was in a
negative trend recording its lowest level since the end of 2020. The first three months of 2022 were a period of increased
volatility, which translated into several per cent changes in the index in the range of 55,000-73,000 points. In contrast, the
period from April to October was a clear downward trend, which translated into the quotation reaching a local minimum
in the approximate area of 45,000 points. The negative trend was reversed in the second half of October and the
increasing movement continued until the end of the year. Finally, the WIG index ended the year with a negative return of
17.1% compared to levels at the end of 2021. The 2022 period saw a diversification of returns among company segments,
although not at the same scale as in previous periods. In the period from 31 December 2021 to 31 December 2022 WIG20
and mWIG40 recorded negative returns that exceeded 20.0%. The relatively best performance was registered by the
smallest companies segment, whose index also reported a loss, but it did not exceed 13.0%.
The indexes of the Warsaw Stock Exchange were in line with the foreign equity markets. For example, the US S&P500
index recorded a negative return of 19.4% during the 12 months of 2022, the French CAC40 lost 9.5%, while the German
DAX was down by 12.3%.
Table 3. The value of the main indices on the WSE
Index
31.12.2022
31.12.2021
31.12.2020
change
2022 vs 2021
change
2021 vs 2020
WIG
57,463
69,296
57,026
(17.1%)
21.5%
WIG20
1,792
2,267
1,984
(20.9%)
14.3%
mWIG40
4,154
5,292
3,977
(21.5%)
33.1%
sWIG80
17,496
20,056
16,096
(12.8%)
24.6%
Source: Bloomberg
The following factors, among others, impacted the 2022 outlook for the Warsaw Stock Exchange: (i) concerns about the
impact of further waves of disease in the context of the COVID-19 pandemic on the global economy; (ii) concerns about
policymakers' approach to handling the pandemic, including the introduction of extensive lockdowns; (iii) the outbreak of
war in Ukraine and the sanctions imposed on Russia, which translated into further disruption of global supply chains; (iv)
an apparent deterioration in macroeconomic data, including in particular PMI leading indices, which translated into
negative revisions to economic growth; (v) an increase in geopolitical risks in the CEE region and thus an outflow of foreign
capital; (vi) uncertainty about the approach of central banks in an environment of accelerating inflation and an expected
economic slowdown; (vii) restrictive monetary policy of the Monetary Policy Council, headed by a cyclical and dynamic
scale of interest rate increases, which translated into capital outflow from the debt market, but also into an increase in
interest rates on term deposits; (viii) expansionary fiscal policy pursued locally and supported by unexpected initiatives of
the government authorities (e.g. anti-inflationary shields, credit moratoria, plans of the so-called extraordinary profits
taxation); (ix) perception of Poland and the WSE on global markets, burdened inter alia by uncertainty about the inflow of
funds from the National Recovery Plan (NRP); (x) volatility of the PLN.
The year 2022 brought a clear upward trend in the yields of Polish government bonds. Ultimately, yields on Polish 10-year
treasury bonds were around 6.85% at the end of the year, when at the beginning of January it was around 3.7%. It is worth
to mention that in October the aforementioned yields exceeded the level of 9.0%. The above was in line with global trends
and was a consequence of rising inflation and expectations of monetary tightening by major central banks. For almost the
entire 2022 Monetary Policy Council maintained its tightening rhetoric by systematically raising interest rates. At the end
of the reported period, the reference rate stood at 6.75%, which was the result of eight consecutive increases from 1.75% in
December 2021.
-50%
-10%
30%
70%
I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV
2016 2017 2018 2019 2020 2021 2022
Current deposits Term deposits
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Table 4. Number of companies, capitalisation and turnover on WSE
31.12.2022
31.12.2021
31.12.2020
change
2022 vs 2021
change
2021 vs 2020
Number of companies
416
430
433
(3.3%)
(0.7%)
Capitalization of domestic
companies (PLN million)
574,669
701,152
538,752
(18.0%)
30.1%
Value of trading in shares
(PLN million)
293,111
330,995
311,124
(11.4%)
6.4%
Futures contracts trading
volume (thousand)
15,280
11,707
11,115
(30.5%)
5.3%
Source: WSE
In 2022, 8 new companies appeared on the WSE's main market, all as a result of the transfer of listings from NewConnect,
and 22 entities left the trading floor. On the NewConnect organised market, 16 issuers debuted on the market last year,
while 17 entities were delisted at the same time. On the Catalyst bond market, meanwhile, a total of 545 bond series were
listed and the value of issues exceeded PLN 1,150 billion.
Stakeholder relations
[2-29]
The Bank's stakeholders are all of those whom we influence and who interact with our organisation. We are focused on an
ongoing, open dialogue and provide our stakeholders with accurate information about our objectives and decisions, also
taking into account their opinions and expectations. We use multiple channels of communication.
Stakeholder group
Main forms of engagement
Selected examples of engagement
Clients
(Individual Clients, Clients in the
Food & Agro sector, small
businesses and associations,
housing associations, corporate
Clients and SMEs)
Face-to-face meetings and telephone/online
discussions, Contact Center helpline
Analysis of Customers’ opinions on offered
services and their quality
Opinion surveys
Websites (chat, video chat, contact form,
online banking)
Social media profiles: Facebook, Instagram
and LinkedIn
Agronomist.pl platform
Customer Journey surveys that allow us to
react on an ongoing basis to Customer
needs and requests
Client days
The campaign "And what have you done for
your Client?"
"Who listens does not misunderstand"
campaign
Food & Agro Conference
Stakeholder group
Main forms of engagement
Selected examples of engagement
Employees and associates
Periodic employee satisfaction surveys
(quarterly)
Internal communication tools
Face-to-face meetings and conversations
Stakeholder opinion surveys conducted as a
part of preparation for non-financial data
reporting
Echonet –internal information portal
Newsletter Hello
Bonjour magazine (internal monthly online
magazine)
Meetings with Board members for all
employees
Subsidiaries of the BNP Paribas
Bank Polska S.A. Group
Ongoing internal communication between
the subsidiaries of the BNP Paribas Bank
Polska S.A. Group.
Management Board Report on the activities
of the BNP Paribas Bank Polska Group.
Entities included in the BNP
Paribas Group in Poland and
abroad
Ongoing internal communication within the
BNP Paribas Group in Poland and abroad
Annual Integrated Report
Market environment
(business partners, suppliers,
consumer and industry
organisations, competition,
administration, nationwide
media)
Ongoing contact with business partners and
suppliers
Stakeholder opinion surveys conducted as a
part of the Preparation for non-financial
data reporting
Ongoing responses to press enquiries (public
relations)
CSR declaration for suppliers - a document
describing the principles of cooperation with
suppliers
Declaration of Responsible Selling - we are
a signatory, we implement the principles of
responsible selling
Office Hours
Supervisory authorities
(Polish Financial Supervision
Authority, National Bank of
Poland)
Information materials and reports for
supervisory authorities
Management Board Report on the activities
of the BNP Paribas Bank Polska Group.
Capital market
(institutional and individual
investors, Warsaw Stock
Exchange, rating agencies,
analysts)
Information materials and reports for the
investors
Ongoing contact with representatives of
capital market institutions
Annual Integrated Report
Local communities
(social partners, local
government administration,
institutions supporting cultural,
Ongoing contact with social partners within
conducted projects
Stakeholder opinion surveys as part of
preparation for non-financial data reporting
The campaign "Where are our Patronesses?"
Noble Gift (Szlachetna Paczka)
Mission Education
Mission Independence
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Stakeholder group
Main forms of engagement
Selected examples of engagement
educational and sport events,
universities, schools, local
residents, local media, NGOs)
Websites (chat, video chat, contact form,
online banking)
Social media profiles: Facebook, Instagram
and LinkedIn
Webinars, podcasts on Spotify platform
Natural environment
(regulatory organisations and
environmental NGOs)
Ongoing contact with social partners within
delivered project
Stakeholder opinion surveys as part of
preparation for non-financial data reporting
Social media profiles: Facebook, Instagram
and LinkedIn
Participation in professional conferences
Partnerships for the implementation of the
SDGs
Climate Positive Programme in cooperation
with the UN Global Compact
Climate Leadership Programme in
partnership with UNEP/GRID-Warsaw
Open Eyes Economy Summit
European Forum for New Ideas in Sopot
Partnership with Forest Forever Foundation
(Fundacja Las na Zawsze)
Stakeholders panel
In 2022, we invited representatives of key stakeholder groups to a dialogue session. The online meeting was held in
accordance with the AA1000 SES stakeholder engagement standard. The standard provides specific guidance to help plan
and conduct stakeholder dialogue.
The purpose of the stakeholder dialogue was to listen to the opinions, needs and expectations of key stakeholders
regarding the implementation of the Bank's business strategy activities, including sustainability aspects. Participants at
the meeting were also given the opportunity to identify other topics that are relevant to them. Any issues identified during
the panel were taken into account as stakeholder expectations, ideas for consideration, and topics for inclusion in the
report.
The meeting was attended by 18 participants, including representatives of companies (SME and Corporate Clients) and
organisations such as the UNEP/GRID-Warsaw Centre, the European Bank for Reconstruction and Development, the
Responsible Business Forum, the Integration Foundation, the Ocalenie Foundation, the Warsaw Stock Exchange, the ANG
SA Group, the Polish Institute for Human and Business Rights, the Association of Listed Companies, the UN Global
Compact, the Polish Bank Association.
Key findings from the panel on stakeholder expectations in the ESG area:
Education, building sustainability awareness and regulatory support,
Partnership working, understanding the situation and needs of stakeholders,
Setting market standards,
A sense of responsibility for created consumer behaviours,
Concern for human rights and the environment throughout the value chain.
Partnerships
[2-28]
At the Bank, we consider cross-sector partnerships to be the best way to implement responsible change and promote best
practices in business, especially in terms of achieving the UN Sustainable Development Goals, accessibility of products,
services and facilities or responsible sales. We work with more than 40 organisations and associations, a full list of which
can be found at: https://www.bnpparibas.pl/csr/partnerstwa.
Strategic partnerships
The key partnerships from a sustainability and community engagement perspective are:
Partnership for the Implementation of the UN Sustainable Development Goals in Poland - an initiative of the Ministry of
Development and Technology, the national coordinator of SDGs implementation in Poland,
Responsible Business Forum (Partnership Programme, Diversity Charter, Chapter Zero Poland),
Nations Global Compact (Climate Positive, Business and Human Rights),
UNEP/GRID-Warsaw (Partnership for the Implementation of the Environmentally Sustainable Development Goals -
Together for the Environment, Climate Leadership),
Polish Bank Association (e.g. Working Group on Sustainable Finance),
Lewiatan Confederation (e.g. Green Transformation Council),
Polish Association of Sustainable Agriculture "ASAP",
Pro Bono Leaders Coalition,
Spring Association - the Noble Gift action,
Integration Foundation.
Climate partnerships
Chapter Zero Poland is part of the Climate Governance Initiative. It is a competence development programme for
supervisory and management bodies of companies created by the World Economic Forum. The aim is to raise awareness
of the consequences of climate change for companies and the impact of business on the climate. Chapter Zero Poland
was launched in May 2021 on the initiative of the Responsible Business Forum in professional partnership with Deloitte
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 29
Poland. Subsequently, the Bank joined the initiative - in a mentoring role. As of December 2021, the UNEP/GRID-Warsaw
is the expert partner organisation of the initiative. The media partner of Chapter Zero Poland is the daily newspaper
Rzeczpospolita. As part of developing the initiative, a programme council has been established, chaired by Lucyna
Stańczak-Wuczyńska - Chairwoman of the Bank's Supervisory Board.
In partnership with the UN Global Compact Network Poland, the Bank participates in the Climate Positive programme to
support activities that promote green attitudes. Przemysław Gdański, the Bank's President, is a member of the UNGC
Programme Council. He also contributes to the annual Yearbook publication, which showcases the Bank's activities and
urges consumers, companies and institutions to get involved in initiatives under the 13th Sustainable Development Goal
- climate action.
In 2020 the Bank joined the international industry consortium Cool Farm Alliance (CFA), which brings together
stakeholders working to advance sustainable agriculture. Our Bank is the first financial institution to join the 60
companies within the CFA. Thanks to our membership in the CFA, the Bank's Food & Agro Customers can use the
innovative Cool Farm Tool via the Agronomist.co.uk portal, which we run from 2021. This is an online calculator for
calculating greenhouse gas emissions associated with agricultural production, assessing farm biodiversity or crop
irrigation requirements.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 30
Marzena Czarny, Team Manager
Strategy and prospects
Business model and value creation for stakeholders 31
GObeyond 2022-2025 business strategy 33
ESG Management 35
Outlook 2023+ 39
Prospects 41
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 31
Business model and value creation for stakeholders
The business activity of the BNP Paribas Bank Polska Group is based on operating segments (the business line's share of
the Group's banking profit, NBI, for the 12 months of 2022 is given in %):
Retail and Business Banking - provides services to individual Customers - including private banking Customers (Wealth
Management) and business Customers - including microenterprises. The highest share of the NBI - 41.0%,
Corporate Banking - offers a wide variety of financial services to big and medium-sized enterprises, local government
entities and entities that are part of international capital groups. The share in NBI - 30.7%,
Small and Medium Enterprise Banking - provides services to Agro and non-Agro Customers. The share in NBI - 10.7%,
Corporate and Institutional Banking (CIB) - supports sales of the Group's products to Polish companies and provides
services to strategic Customers. The share in NBI - 7.4%,
Other banking activities are carried out within the Asset and Liability Management Division and the Corporate Center.
The share in NBI - 10.2%.
Foundations of operations
Completeness of the offer
We offer Customers a variety of financial products and services provided by the Bank and Group companies. We are close
to our Customers. We provide services in a network of bank Clients’ Centers, and we are constantly developing and
adapting our branches to their needs. Our loan products are also available at partner stores and selected car dealer
networks. To meet the technological challenges, we are constantly developing our products and digital service channels:
mobile and online banking, new forms of communication.
Offer availability
We seek to provide equal access to banking for each Customer, therefore we are improving our products and introducing
accessible infrastructure at our branches to provide access to banking for people with disabilities, seniors and those from
vulnerable groups.
Responsible Risk Management
We aim to provide the highest quality services to our Customers. Prudent market management and a culture of
Compliance are the pillars of our business operations. We have implemented and follow procedures to manage risk. One of
the key elements of this system is the management of ESG risks, including climate risk.
Supporting a Customer in a sustainable transformation
Long-term support for the sustainable development of the economy and building lasting relationships with Customers and
other stakeholders of the Bank are key components of our responsibility. We offer products and services tailored to the
changing needs of our Customers, while responding to global challenges and local market conditions.
Key resources
Financial capital - we use the funds raised from Customers and shareholders and the profits we generate to offer
responsible financial products and services.
Human and intellectual capital - through the knowledge and competence of our employees, we create innovative
products and services to meet the needs of our Customers.
Operating capital - we work agilely and continuously to develop and improve the quality and availability of our services
through traditional and digital contact channels.
Social capital - as a public trust institution, we initiate actions for positive changes in our environment.
Environmental capital - we care about the environment and offer solutions to support sustainable economy.
The Bank’s mission
We bring positive banking into our Customers' lives, meeting their financial needs and making it easier for them to achieve
their goals. In a simple, thoughtful and secure way. Caring for society and the environment.
We live in a changing world. Therefore it is especially important for us to secure financial needs and
introduce innovations. We support Customers in their sustainable development. We care about the
professional development and engagement of our employees. We generate increased shareholder
value and benefits for the economy, environment and local communities.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 32
IN A CHANGING WORLD WE SUPPORT OUR CUSTOMERS IN THEIR SUSTAINABLE DEVELOPMENT
The local Bank with global reach
Sustainable finance and positive banking
KEY RESOURCES
STRATEGY AND BUSINESS MODEL
EFFECTS FOR STAKEHOLDERS
SELECTED 2022 RESULTS
CONTRIBUTION
TO SDGs
#TOGETHER
#POSITIVE
#STRONGER
#UP
CLIMATE
CHANGE
REGULATORY
AND ECONOMIC
ENVIRNOMENT
DIGITIZATION
SOCIAL
CHANGES
FINANCIAL CAPITAL
HUMAN AND INTELLECTUAL
CAPITAL
OPERATING CAPITAL
SOCIAL CAPITAL
ENVIROMENTAL
CAPITAL
RETAIL
AND
BUSINESS
BANKING
41.0%
CORPORATE
BANKING
30.7%
SME
BANKING
10,7%
CIB BANKING 7.4%
OTHER
OPERATIONS
10,2%
We aim to continuously increase value for shareholders
while respecting the principles of sustainable development.
We support Clients in green transformation and contribute to
the pace of its achievement.
We are creating a responsible workplace with broad
opportunities for growth and community involvement.
We provide financial services of the highest quality and offer
Customers a professional service, based on our stable
relationships.
We are involved in social activities responding to the
challenges of our environment to build civil society together.
We support equalization of opportunities and act against
social exclusion.
We offer environmentally friendly products and services
aiming to protect the environment and climate. We
promote responsible attitudes and act to raise awareness of
climate change.
-
Return on Equity (ROE): 3.9%
- Share of sustainable financing: 7.1%
- Reduce the salary gap between women and men:
6.5%
- Participation of women in the Bank's
Management Board: 22%
- NPS - Retail Banking and Personal Finance: 7
th
place
- % of key processes available through remote
channels (for the individual Customer):66%
-
Clients’ Centers certified as "Barrier-free
facility": 25%
- Community involvement (annual average per
employee):3h51’
-
Reduction of CO2 emissions from operations: -
43%
- Reduction of energy consumption: -27%
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 33
GObeyond 2022-2025 business strategy
[2-12]
The main objective of GObeyond's new strategy for 2022-25, adopted by the Bank's Management Board and the
Supervisory Board in March 2022, is to continue the dynamic growth of the Bank, which will be an institution that operates
efficiently, with engaged employees and satisfied Customers, while being a leader in the area of sustainability. GObeyond's
strategy, after multistage building of scale through acquisitions in previous years, focuses on organic growth with a
responsible approach to risk management.
Although the volatile environment may affect the Group's financial performance in the future, our ambition is to achieve
the following targets by 2025:
The strategic directions included in GObeyond's new strategy are based on solid foundations and the Bank's sustainable
and diversified business model. The directions set are valid despite the volatile environment we currently face. The new
strategy was developed internally, by a broad group of Bank employees representing all key areas, and by representatives
of the subsidiaries.
GObeyond's strategy is based on 4 pillars:
PILLAR UP
GObeyond's strategy is a growth strategy. Our aim is to increase the number of Clients served, strengthen our market
position and increase revenues. The bank sees potential for growth in all Customer segments.
Retail Banking and Personal Finance
Achieving high Customer satisfaction, which translates into an increase in the number of active Customers (by 0.5 million
to 4.5 million). This will be achieved through innovative products (including those that go beyond banking), personalised
communication and broad accessibility to the bank's products through remote channels.
SME, Corporate and CIB Banking
Seeking to strengthen its position among international Clients and large local corporations, (including supporting their
international expansion). The bank wants to increase its active Customer base, served using digital solutions. A key
objective is to deeply optimise and shorten the credit process.
PILLAR POSITIVE
The bank aims to be a leader in sustainable finance by developing a range of dedicated products and services for all
business lines. It will consistently aim to its own climate neutrality and support its Customers in doing so. Responsibility,
accessibility, transparency and ethics will dominate the relationship with Customers. Activities for the benefit of local
communities and involvement in education and public debate, will support the building of the Bank's brand.
PILLAR STRONGER
Improvement of internal processes, transformation of the IT area using the latest technologies and acceleration of new
solutions implementation. The planned investments in this area will reach a total of PLN 1.5 billion. The objective is to
quickly and cost-effectively scalability as the basis of a modern digital bank. Supporting business development by
advanced analytical tools. Maintaining a secure and optimal capital and liquidity position. Initiate dividend payments
during the current strategy.
PILLAR TOGETHER
A committed and satisfied workforce guarantees a high level of Customer satisfaction. A new organisational culture that
supports employee development, proactivity and creativity, and encourages brave decisions. Starting to operate under the
Agile@Scale working model from 2022. Ensuring work-life balance and paying attention to employees' mental health.
Supporting the development of women and promoting diversity.
Implementation of the Strategy in 2022
In March 2022, the Bank announced a new GObeyond strategy (for 2022-25). Its presentation came shortly after the
outbreak of war in Ukraine, which again, after two years of COVID-19 pandemic, tested the Bank's ability to quickly change
plans and adapt to the new situation. From the beginning of the conflict, the Bank and its employees were involved in
helping those seeking refuge in Poland. The support provided was financial, material, and was also in the form of
providing accommodation. More than a thousand people found shelter in locations provided by the Bank. The Bank
immediately, just 4 days after the outbreak of war, adapted its offer and processes to the needs of refugees. Although the
strategy was created in radically different circumstances, the Bank considered that its provisions remain valid. The
strength of the plan for the upcoming years is the way it was created. More than 200 key individuals from the organisation
were involved, whose visions for development were deeply confronted and compiled into coherent directions that respond
to the needs of the Bank and its Customers. The result of this approach has been a smooth transition to the
implementation of the plans, where some of these materialised even before the official announcement of the new strategy.
An example of such activity is the transition of 1,300 employees to work within Agile@Scale since 1 January 2022. The aim
of the new work organisation is to accelerate the Bank's transformation while improving cost efficiency and higher
Return on equity (ROE): ~12%
Cost/income ratio: max. 48%
Share of sustainable financing: 10%
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 34
employee satisfaction. The trajectory of the latter exceeded expectations. Employee satisfaction, as measured by the eNPS
index, increased from -9 points in 2021 to +18 points in 2022.
Bank developed its offer of products and services, focusing, among other things, on fixed-rate loan products. For retail
Customers, the first mortgage loan offer on the market with a fixed interest rate period of 10 years was introduced. Fixed-
rate loans were also offered to micro-businesses (cash loan) and farmers (working capital loan). Particularly a number of
new facilities have been introduced for those running small enterprises. This was a range of functionalities in digital
channels, including an accounting service.
The Bank was continuing its commitment to sustainable transformation by finalising three major Sustainability-Linked
Loan operations. In December, the Bank launched a brand new corporate product, which is financing based on the
borrower's ESG rating, that enables a company, to obtain more favourable financing terms by improving its standards for
managing sustainability issues. The Bank's long-standing focus on sustainability, was reflected in the achievement of the
best ESG rating of 10.9 (very low risk) among Polish banks by Sustainalytics.
In the area of technology, the Bank has introduced significant improvements. The hotline has been enhanced with a
voicebot function, while the chatbot operating within online banking has achieved very high E2E service rates. The Bank is
also continually strengthening the security of Customers providing for instance the possibility of behavioural analysis in
remote channels to support the detection of possible account hacking. The bank also protects Customers against phishing
by verifying the identity of the bank employee and the Customer during a phone call, using push notifications in the mobile
app. This solution received an award from Gazeta Bankowa as part of the TechnoBusiness 2022 competitions. In terms of
the individual Customer, the percentage of processes that can be performed fully remotely has clearly increased. This
indicator has increased from 55% to 66% over the three quarters of the strategy and is on track to reach the target of 90%
in 2025.
The year 2022 was also associated with negative market and regulatory issues affecting the Bank and the sector as a
whole. Opportunities to improve profitability through interest rate increases did not materialise, as a result of the
introduction of suspension of performance of mortgage contracts. In addition, global risk aversion caused a significant
repricing of government bonds, which the sector affected in the decline of its portfolio holdings. This took place against a
backdrop of still growing provisions for foreign currency loans and sustained long-term charges such as the bank tax. At
the moment, the banking sector is struggling to generate profits, even at a level that allows it to maintain its capital base.
In the shorter term, this will be difficult or impossible to continue to finance the economy at the required level. In the
longer term, this could threaten the stability of the sector as a whole.
Execution of strategic financial targets in 2022
Ratio
2025 strategic target 2025
2022 execution
Return on equity ratio (ROE)
~12%
3.9%
Cost/income ratio (C/I)
max 48%
56.8%
Share of sustainable financing
10%
7.1%
Activities under the strategy's objectives in 2022
PILLAR
KEY ACHIEVEMENTS 2022
#UP
Offering high quality banking products as well as
and non-banking products and services as the key
to growing the Customer base in an omnichannel
world. Creating an excellent Customer experience
by designing customised pathways
Introduction of fixed-rate loans for micro businesses (cash loan) and farmers
(working capital loan). Poland's first mortgage with a 10-year fixed rate.
New innovative products: financing of early-stage technology companies
('scale ups') with a loan from PLN 500,000 to PLN 2 million, micro-factoring
in cooperation with Fandla.
Immediate (4 days after the outbreak of war) adaptation of the offer and
account opening process to the needs of the Ukrainian people.
GOdealer - the new mobile application for currency exchange. Fast currency
transactions via phone for all Customers - from individuals to the largest
companies.
The first place in the Traditional Banking category in the Newsweek's
Friendly Bank ranking and the second place in the Forbes magazine's
Company Friendly Bank ranking.
#POSITIVE
Responsible and reliable financial partner
supporting the positive and sustainable
development of Customers, business and society.
A guide for Clients in a world of digital and
sustainable transformation.
Three significant Sustainability-Linked Loan transactions, i.e. general
purpose financing, linked to improved sustainability (ESG) indicators:
Wirtualna Polska Holding, Velvet Care, Fabryka Farb i Lakierów Śnieżka.
ESG Rating-Linked Loan - a new type of financing linked to an improved ESG
rating score and the establishment of a partnership with the rating agency
EcoVadis.
contracts to support energy efficiency projects in cooperation with the EIB.
The best ESG Sustainalytics rating score among Polish banks.
Strengthening employee engagement: launch of online platform to manage
employee volunteering, 202 parcels through Noble Gift, 3 hours 51 minutes -
employee social engagement (annual average per employee).
103 branches with the "Barrier-free facility" certificate.
#STRONGER
The global strength of the BNP
Paribas Group and the dynamic technological
development combined with the optimisation of
E2E processes as the basis for organic growth and
high Customer satisfaction.
Optimisation of the complaint process. Decrease in the number of complaints
by 6% y/y and improved evaluation of the process by Customers.
Protecting Customers from frauds: the first in Poland verification of the
identity of a Bank employee and a Customer during a phone call, using push
notifications in a mobile app. Implementing behavioural analytics at
GOonline.
Convenient transaction solutions: further development of BLIK functionalities
(instalment and credit card repayment, mobile transfer), aggregator of
accounts from other banks (open banking).
Modern methods of Customer service (implementation of a voicebot on the
Bank's call centre, increasing use of chatbot on GOonline).
Convenient functionalities for micro-entrepreneurs: a advanced
GOksięgowość (GOaccounting) system, a payment terminal on the phone
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 35
PILLAR
KEY ACHIEVEMENTS 2022
(SoftPOS), completely remote opening of a company account using
biometrics and electronic signature.
Digital Fraud Innovation Lab: working with external companies to more
effectively combat cyber risks.
#TOGETHER
People first: we focus on people. Committed and
satisfied employees guarantee a high level of
Customer satisfaction.
Agile@Scale and a new organisational culture the
as a foundation for a diverse and inclusive
working environment based on trust, courage and
creativity.
A year of operation in the new Agile@Scale style. Tribe objectives integrated
with strategy directions.
Improvement in employee satisfaction measured by the eNPS – index up by
27 points in one year.
Bank and employees’ involvement in initiatives supporting refugees (more
than 1,400 employees involved in volunteering for Ukraine).
Developing the competences of the future: 'UniversITy' training in the area of
New Technologies and Cyber Security.
Supporting employee networks: "Women changing BNP Paribas" (3 years of
activity), "BNP Paribas Pride Poland", "Dad, you've got it made", "Agave Age".
- Network created by female employees and 50+ employees.
ESG Management
[2-12] [2-13] [2-14] [2-17]
Supervision of environmental, social and governance - ESG (E - environmental, S - social, G - governance) issues,
including the implementation of the CSR and sustainability strategic objectives, is provided by the Board of Management
headed by the CEO. The Board of Management approves the direction and scope of activities, and gives its opinion and
oversight on the integration of sustainability activities. As part of its oversight and management of ESG issues, the Board
takes into account the voices and opinions of stakeholders resulting from reports received, client and employee surveys
and information from ongoing partnerships with NGOs. Reports and research are presented, among others, at Board
meetings. The members of the Board of Management are responsible for meeting the annual ESG targets. Particular
priority is given to targets related to the development of sustainable product offerings. Ambitions for their sales are
embedded in the objectives of the entire senior management team and, in the case of individual business lines, cascaded
successively to the sales teams.
Since January 2022, sustainability responsibilities previously divided between the various units of our Bank have been
carried out by the Sustainability Area, acting as the coordinator of ESG activities in the organisation. The Executive Director
of the Area (with the rank of a Board Member), reports directly to the CEO. In addition, the Executive Director also heads
the informal structure of the Sustainability Community, acting as Chief Sustainability Officer.
The tasks of the Sustainability Area are as follows:
coordination of strategic ESG activities, CSR activities and sustainability,
planning and managing the Bank's budget for the implementation of ESG, CSR and sustainability initiatives,
initiating sustainable products and services with a positive impact, focusing in particular on supporting the energy
transition (including RES),
cooperation with financial institutions and organisations, rating agencies, Customers and other external stakeholders,
cooperation with other units and organisational departments as well as the Bank's internal stakeholders,
monitoring ESG risk of the Bank's Customers and transactions as well as coordinating Corporate Social Responsibility
Policies and analyses, particularly in sustainability-sensitive sectors,
initiating, implementing and reporting on sustainability initiatives, projects and programmes,
building the Bank's position as a leader of sustainable development, including sustainable finance.
The Sustainability Area is composed of three units. The Energy Transition Facilitation Department is responsible for
cooperating with financial institutions and organisations with the aim to support the energy transformation. The tasks of
the CSR and Sustainable Finance Department include coordinating the implementation of sustainability and ESG
strategies, cooperation with stakeholders and rating agencies, monitoring ESG risk of Customers and transactions, and
coordinating CSR policies and analyses, especially in vulnerable sectors. The Sustainability Strategy Implementation
Support Team works together with the Bank's internal stakeholders in terms of sustainability tasks and is responsible for
budgeting and reporting processes and oversight of strategic initiatives.
Our Bank's sustainability efforts are supported by the Sustainability Community. It is an informal structure formed by:
the Sustainability Council, which consists of 22 representatives of the Bank's key areas and business lines. The
Sustainability Council is headed by the Chief Sustainability Officer, the Executive Director of the Sustainability Area,
Sustainability Officers, more than 150 people selected through an internal recruitment process, who have taken on the
role of supporting the implementation of ESG initiatives within the organisation in addition to their day-to-day duties,
units of the Sustainability Area.
The role of the interdisciplinary and intersectional Sustainability Council is to combine various competences and
undertakings alongside the structures already in place. The Council is responsible for ensuring that the strategic objectives
related to the implementation of the UN Sustainable Development Goals (SDGs) are understood and shared within all
areas of the Bank's business and among Customers. The Board's responsibilities include defining and monitoring strategic
ESG activities, overseeing the development of sustainable products and services and linking initiatives across the different
business areas. The Council is also responsible for approving relevant reporting subjects. The Council members meet on a
monthly basis to review activities related to ESG aspects.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 36
Sustainability Officers coordinate and implement activities on sustainability and ESG aspects and work closely with the
Sustainability Council and Management Board.
ESG Academy by BNP Paribas Bank Polska
In 2022, members of the Sustainability Community had the opportunity to participate in a seven-month educational
programme - ESG Academy by BNP Paribas Bank Polska. The programme strengthened sustainability knowledge and skills
to work effectively towards the GObeyond 2022-2025 strategy.
ESG Academy by BNP Paribas Bank Polska objectives:
AWARENESS - building awareness of trends – ongoing social, economic and environmental changes,
KNOWLEDGE - providing knowledge of the basic concepts, regulations, standards for sustainable development activities,
SKILLS - providing skills to implement new ESG initiatives,
ATTITUDES - stimulating discussion, promoting ESG and involving in the Bank's and Customers' sustainability efforts.
The programme was prepared in partnership with the SAPERE consulting company. Highly valued experts representing the
Bank's partner organisations, including UN Global Compact Network Poland, UNEP/GRID-Warsaw, the Responsible
Business Forum, as well as the Warsaw Stock Exchange and Abris Capitals, were invited to participate in the preparation of
the content materials. More than 150 people have completed the programme.
ESG policies and procedures
[2-23] [2-24]
The main policies, procedures and other documents governing due diligence issues related to ESG aspects at Group and
Bank level. All policies are approved by the Management Board by means of an appropriate resolution. Policies and
procedures of an internal and confidential nature are available to employees through the Intralex system. Policies and
procedures of an open nature are available to external stakeholders through the Bank's website.
Each policy and procedure has an assigned regulatory owner, who is responsible for the implementation of the
commitments, the integration of the commitments into the Bank's business strategy, in the business relationship, and the
provision of the necessary training in this area.
The implementation of the individual policies is described in the chapters covering each area.
Area
Documents implemented (as at 31.12.2022)
Social issues
At the BNP Paribas Bank Polska Group level:
BNP Paribas Group Code of Conduct (https://www.bnpparibas.pl/csr/strategia-csr/lad-korporacyjny)
BNP Paribas Group Corporate Responsibility Principles (https://www.bnpparibas.pl/csr/strategia-csr)
BNP Paribas Foundation Statutes (https://www.bnpparibas.pl/fundacja)
At BNP Paribas Bank Polska S.A. level:
CSR Policy - Corporate Social Responsibility Corporate Social Responsibility Policy at BNP Paribas Bank
Polska S.A.
Rules of Procedure for Employee Volunteering BNP Paribas Bank Polska S.A. Employee Volunteerism
Regulations, regarding the rules of involvement of the Bank's employees in employee volunteerism
Local Grants Programme Regulations
Donation Budget Regulations of BNP Paribas Bank Polska S.A.
Donations, Partnerships and Sponsorships Policy
Principles of ESG risk management at BNP Paribas Bank Polska S.A.
Employee issues
At the BNP Paribas Bank Polska Group level:
BNP Paribas Group Code of Conduct (https://www.bnpparibas.pl/csr/strategia-csr/lad-korporacyjny)
BNP Paribas Group Corporate Responsibility Principles (https://www.bnpparibas.pl/csr/strategia-csr)
Policy on reporting violations of the law and the Bank's ethical procedures and standards, including
anonymous reporting (WHISTLE-BLOWING)
At BNP Paribas Bank Polska S.A. level:
CSR Policy - Corporate Social Responsibility Corporate Social Responsibility Policy at BNP Paribas Bank
Polska S.A.
Diversity management policy at BNP Paribas Bank Polska S.A.
Remuneration Policy for Employees of BNP Paribas Bank Polska S.A
Policy for dealing with violations of respect for others at BNP Paribas Bank Polska S.A.
Employment regulations at BNP Paribas Bank Polska S.A.
Employee recruitment principles at BNP Paribas Bank Polska S.A.
Regulation of allocation and payment of variabale remuneration components to persons having
material impact on the risk profile other than members of the management board of BNP Paribas
Bank Polska S.A.
Rules of Procedure of the Disciplinary Committee of BNP Paribas Bank Polska S.A.
Policy of Planning Succession at BNP Paribas Bank Polska S.A.
Policy for identifying key functions and for appointing and dismissing persons holding these functions
at BNP Paribas Bank Polska S.A.
Rules of procedure for organisational changes at BNP Paribas Bank Polska S.A.
Rules of conduct in the processes of employing, resigning and terminating contracts with employees of
BNP Paribas Bank Polska S.A. with employees of BNP Paribas Bank Polska S.A.
Policy on the assessment of suitability of members of the Management Board and key function holders
at BNP Paribas Bank Polska S.A.
Environmental issues
At the BNP Paribas Bank Polska Group level:
BNP Paribas Group Code of Conduct (https://www.bnpparibas.pl/csr/strategia-csr/lad-korporacyjny)
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Area
Documents implemented (as at 31.12.2022)
BNP Paribas Group Corporate Responsibility Principles (https://www.bnpparibas.pl/csr/strategia-csr)
Financing and investment policies (https://group.bnpparibas/en/our-
commitments/transitions/financing-and-investment-policies)
At BNP Paribas Bank Polska S.A. level:
CSR Policy - Corporate Social Responsibility Corporate Social Responsibility Policy at BNP Paribas Bank
Polska S.A.
Principles of ESG risk management at BNP Paribas Bank Polska SA.
Respect for human
rights
At the BNP Paribas Bank Polska Group level:
BNP Paribas Group Code of Conduct (https://www.bnpparibas.pl/csr/strategia-csr/lad-korporacyjny)
BNP Paribas Group Corporate Responsibility Principles (https://www.bnpparibas.pl/csr/strategia-csr)
BNP Paribas Declaration on Human Rights (https://www.bnpparibas.pl/_fileserver/item/1530015)
Policy on reporting violations of the law and the Bank's ethical procedures and standards, including
anonymous reporting (WHISTLE-BLOWING)
At BNP Paribas Bank Polska S.A. level:
CSR Policy - Corporate Social Responsibility Corporate Social Responsibility Policy at BNP Paribas Bank
Polska S.A.
Diversity management policy at BNP Paribas Bank Polska S.A.
Policy for dealing with violations of respect for others at BNP Paribas Bank Polska S.A.
Principles of ESG risk management at BNP Paribas Bank Polska SA.
Anti-Corruption and
Anti-Fraud
At the BNP Paribas Bank Polska Group level:
BNP Paribas Group Code of Conduct (https://www.bnpparibas.pl/csr/strategia-csr/lad-korporacyjny)
BNP Paribas Group Corporate Responsibility Principles (https://www.bnpparibas.pl/csr/strategia-csr)
Policy on reporting violations of the law and the Bank's ethical procedures and standards, including
anonymous reporting (WHISTLE-BLOWING)
Anti-Corruption policy at BNP Paribas Bank Polska S.A.
At BNP Paribas Bank Polska S.A. level:
CSR Policy - Corporate Social Responsibility Corporate Social Responsibility Policy at BNP Paribas Bank
Polska S.A.
Instruction on the procedure for handling employee complaints and requests.
Gift Policy at BNP Paribas Bank Polska S.A.
Regulations on management of conflicts of interest at BNP Paribas Bank Polska S.A.
(https://www.bnpparibas.pl/csr/strategia-csr/lad-korporacyjny)
Regulations on protection of confidential information flow at BNP Paribas Bank Polska S.A.
Regulations governing investments by supervised persons and transactions by managers
Regulation of allocation and payment of variabale remuneration components To persons having
material impact on the risk profile other than members of the management board of BNP Paribas
Bank Polska S.A.
UN Sustainable Development Goals
The Bank is continuously committed to the implementation and promotion of the 17 UN Sustainable Development Goals.
They form an important part of the Value Creation Model and set the direction for our activities
UN Sustainable Development Goals
Examples of Bank activities
Goal 1: To eliminate poverty in all its
forms worldwide
Noble Gift
Local Grants Programme
Goal 2: To eliminate hunger, achieve
food security and improved nutrition
and to promote sustainable
agriculture
Community projects under the Community Grants Programme and the Competition for
Voluntary Projects
Goal 3: Ensure a healthy life for all at
all ages and promote well-being
No funding for the tobacco sector - CSR policy
Funding of strategic solutions and Clients in the field of health protection and
promotion
BEneFIT wellbeing programme
Programme Good
Good Kilometres Action
Goal 4: Provide quality education for
all and promote lifelong learning
Scholarship programme "Class"
Programme "BAKCYL - Bankers for Youth Financial Education"
Mission Education
Bank's Local Ambassadors Programme
BNP Paribas Foundation's partnership programme with the Ocalenie Foundation -
"Wiedza do potęgi”
Goal 5: Achieve gender equality and
empower women and girls
BNP Paribas Women of Change Programme
Partnership with the Share The Care Foundation
The Bank has taken a strategic decision reflected in its Diversity Policy that by 2025 it
will ensure that 30% of the Management Board and Supervisory Board are female,
separately in each body
Partnership with the Cosmos for Girls Foundation
Goal 6: Ensure access to water and
sanitation for all through sustainable
water resource management
Water footprint calculator for agricultural producers on Agronomist.pl
Promotion of eco-attitudes (e.g. through annual cooperation with the BNP Paribas
Green Film Festival - an international environmental film festival, intended to educate
and promote pro-environmental attitudes through film as well as discussions, panels
and other accompanying events)
Goal 7: Ensure affordable access to
sources of stable, sustainable and
modern energy for all
Financing renewable energy sources (RES)
100% of the energy purchased by the Bank comes from renewable energy sources
Bank's participation in the Clean Air Programme
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UN Sustainable Development Goals
Examples of Bank activities
Goal 8: Promote stable, sustainable
and inclusive economic growth, full
and productive employment and
decent work for all people
Financing the development of the Polish economy
Active participation in industry events and partnerships in support of economic
development (e.g. Lewiatan Confederation, ZBP)
In the Bank's supplier selection process, signing the CSR Declaration accounts for 10%
of the overall supplier assessment
Goal 9: Build stable infrastructure,
promote sustainable industrialisation
and encourage innovation
Supporting the development of strategic Clients e.g. through the Foreign Trade
Programme
Office Hours - meetings between Bank experts and representatives of start-ups in
search of innovative ideas and solutions
Technology credit
Goal 10: Reduce inequalities within
and between countries
Availability of products and services
Diversity - the management of this area is regulated among others in the Diversity
Management Policy at BNP Paribas Bank Polska S.A.
Goal 11: Make cities and human
settlements safe, stable, sustainable
and inclusive
Sustainable product and service offer
Goal 12: Ensure sustainable
consumption and production models
Supporting sustainable development in the Food & Agro sector
100% of the energy purchased by the Bank comes from renewable energy sources
Bank experts share their experience and good practices in CSR and sustainability at
industry events and conferences
Goal 13: Take immediate action to
combat climate change and its
impacts
Carbon sector exit process
Bank for Green Change programme
Green products and services as well as financing programmes
Actions for electromobility
Goal 14: Protect and sustainably use
the oceans, seas and marine
resources
CSR policies
The issuance of the structured certificates "Good Investment III" supports the campaign
to build the International Polar Station in the Arctic Ocean, implemented by the Tara
Ocean Foundation, which is intended to provide scientific teams from around the world
with the opportunity to conduct research aimed at taking action to protect ocean
waters
Goal 15: Protect, restore and promote
sustainable use of land ecosystems,
sustainably forest management,
combat desertification, stop and
reverse land degradation and prevent
biodiversity loss
CSR policies - forestry sector
Tree planting
Paperless programme - initiatives to reduce paper use
UN Sustainable Development Goals
Examples of Bank activities
Goal 16: Promote peaceful and
inclusive societies, ensure access to
justice for all, and build effective and
responsible, inclusive institutions at
all levels
CSR policy - defence and security sector
Partnership in the competition: Ethics in Finance
Declaration of Responsible Sales
Goal 17: Strengthen the means of
implementation and activate the
Global Partnership for Sustainable
Development
Cross-sectoral strategic partnerships
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Outlook 2023+
The most important external factors that, according to the Bank, may affect the
Group's performance in future periods include:
The war in Ukraine. According to estimates by the Kyiv School of Economics,
the damage to infrastructure and buildings in Ukraine as a result of nearly a
year of Russian military aggression has exceeded $120 billion. At the same
time, the Ukrainian economy has fallen into a deep recession, with estimates
of GDP declining by one-third in the volume of goods and services produced.
The impact of the war on the economies is also being felt in neighbouring
countries, including Poland. For example, the increase in energy prices
associated with the departure of European countries from imports of energy
resources from Russia was one of the significant reasons for the sharp
acceleration of inflation in Poland last year. The total impact of the war is
still difficult to estimate and will depend on when it ends, the political
resolution of the war, as well as what further sanctions will be imposed on
Russia as well as Russia's response to them.
Global economic slowdown. According to the International Monetary Fund
(IMF), global economic growth slowed to 3.2% in 2022 from 6.1% the previous
year. In 2023 The IMF expects GDP growth to be slowing further to 2.7%. As
the IMF points out, this is the weakest growth profile since 2001, with the
exception of the global financial crisis and the acute stage of the COVID-19
pandemic. According to the IMF, an increasing number of economies are in a
growth slowdown or even recession. In the line of shrinking economic activity,
CPI inflation should also decelerate. The IMF expects inflation to slow to 6.5%
this year from a peak of 8.8% in 2022. In the EUR area, detailed forecasts
predict that GDP growth will slow to 0.5% in 2023 and accelerate to 1.5% the
following year. This is a revision of -1.8 and +0.2 p.p. respectively compared
to the forecasts made in April. The decline in activity in Western European
countries will also affect economic growth in Poland. The International
Monetary Fund lowered the outlook for GDP growth in Poland to 0.5% in 2023
and to 3.1% in 2024, against 2.9% and 3.3% assumed in the April report.
Similar forecasts were published in May by the European Commission (EC).
According to its estimates, GDP dynamics in the EUR area will reach 0.3% in
2023 and accelerate to 1.5% in the following year. In the case of Poland, the
forecasts of both institutions also coincide. According to the EC's forecasts,
economic activity in Poland will grow by 0.7% this year and 2.6% the following
year. Both the IMF and the European Commission point out that the forecasts
are subject to an extremely high level of uncertainty. The future health of the
global economy will depend on the correct calibration of monetary policy, the
further course of the war in Ukraine and the possibility of further pandemic-
related disruptions on the global supply in for example China.
Monetary policy conducted by major central banks. In addition to the
geopolitical situation, central bank policy will be a major factor influencing
the pace of the global recovery. Since the beginning of 2022, a clear shift
towards a tightening of monetary policy conditions among the major central
banks has been apparent. Last December, the US Federal Reserve (Fed) raised
the key interest rate again, to a range of 4.25-4.50%. In addition, the Fed
presented determination in its fight against inflation despite the risk of an
economic slowdown in the US. The hawkish stand was also maintained by the
European Central Bank (ECB). On 1 July 2022, the Asset Purchase Programme
(APP) came to an end. In December 2022 ECB Governing Council, raised the
deposit rate by 50 bps, to 2.00%. According to ECB communications, further
interest rate developments by the Governing Council will depend on incoming
data and will be directed towards bringing inflation down to the 2% target in
the medium term.
National Polish Bank activities. Since October 2022 the Monetary Policy
Council (MPC) has kept the NBP interest rates unchanged, including the
reference rate of 6.75%. The Council assesses that the expected downturn in
the global economy together with the tightening of monetary policy by major
central banks will have a dampening effect on global inflation and commodity
prices. In such conditions, the significant monetary tightening by the MPC to
date will be conducive to lowering inflation in Poland towards the NBP's
inflation target. According to NBP President Adam Glapinski, the MPC has not
yet completed the policy tightening cycle, but has put it on hold until the
central bank's new macroeconomic forecast is presented in its March
Inflation Report.
Maintaining the exchange rate of the zloty against key currencies. The zloty
strengthened in the fourth quarter. Since the beginning of October, the
EUR/PLN exchange rate has fallen from 4.85 to 4.70 at the end of the year.
The decline in EUR/PLN was the result of an increase in risk appetite, caused
among other things by the stabilisation of commodity prices. Moreover, the
rise in EUR/USD also supported the appreciation of the zloty. Domestic
factors, such as the pause in the interest rate increases cycle, rising core
inflation and little progress in negotiations with EU institutions on the release
of NRP funds, prevented a more significant strengthening of the zloty.
Economic developments in Poland. In the third quarter, annual GDP growth
slowed from 5.8% to 3.6%. On a quarterly basis, the economy grew by 1%,
avoiding a technical recession. As expected, GDP growth was driven primarily
by an increase in inventories, which added more than 2 p.p., to total GDP
growth. The detailed analysis also revealed disappointing consumption,
whose y/y growth slowed to just 0.9% from 6.4% in the summer. The weak
data most likely reflected the negative impact of high inflation and interest
rates on household spending. Meanwhile, net exports recorded a surplus and
made a positive contribution to annual GDP growth by adding 0.6 pps.
According to the NBP forecasts, annual GDP growth will gradually slow down
to 1.9% in Q4. The year 2022 will close with economic growth at 4.6%, slowing
to 0.7% the following year. In the current year, economic growth will continue
to be negatively impacted by the macroeconomic effects of the war in
Ukraine, in particular the effects of the second round of significant increases
in energy prices. According to the NBP, in the longer horizon, domestic
economic activity will be increasingly adversely affected by the expected
slowdown in GDP growth in the main developed economies, the tightening of
global monetary conditions and a significant decline in the inflow of European
funds after the end of the spending of funds from the 2014-2020 EU
perspective.
Situation on the domestic labour market. The situation on the Polish labour
market is positive. At the end of the year, the number of vacancies increased
and the unemployment rate remains around 5.0%. Nominal salary dynamics
remain at a high, double-digit level. In Q4 2022, salary growth in the
corporate sector averaged around 13% y/y. This year, salary dynamic in the
business sector is likely to remain strong due to two increases in the
minimum salary by a total of nearly 20%. The Inflation Report published in
July shows that average salary growth across the economy will reach 11.9%
this year. In the following years, growth will slow down to 7.6% in 2024 and
to 5.9% in 2025. The dynamic growth in remuneration is due, among other
things, to the continued positive situation on the Polish labour market and
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high CPI inflation, which increases employees' earnings demands. On the
other hand, salary pressures may be partly mitigated by increasing labour
supply.
Dynamic rise in inflation. The year 2022 ended with very high inflation. In the
fourth quarter, the price level in Poland increased by almost 17% on an
annual basis. The dynamic acceleration of inflation in Poland was largely due
to the situation on global commodity markets. In the current year, inflation is
likely to peak in the first quarter and begin to gradually decline in the
following quarters. According to the Inflation Report, inflation will average
13.1% this year and slow down to 5.9% in the following year. A return of
inflation to the NBP's inflation target range (1.5-3.5%) will not be possible
until the end of 2025. High inflation and an improving labour market may
translate into higher costs for the Bank.
Increasing unsustainability of public finances. After a decline in the general
government (GG) deficit in 2021 to around 1.8% of GDP, in 2022 the European
Commission expects the sector's expenditure to exceed revenues by nearly
150 billion (4.8% of GDP). In the following years, the European Commission
forecasts the deficit to increase to 5.5% of GDP in 2023 and 5.2% of GDP in
2024. The deterioration of public finances will be influenced by further
support measures to mitigate the impact of high energy prices in 2023. For
example, electricity prices have been frozen for households within certain
consumption limits and capped for utilities and small and medium-sized
enterprises. Spending on refugees from war-stricken Ukraine is to continue.
The government has also launched a major multi-year defence investment
programme, increasing budget spending in this area to 3% of GDP per year.
Sentiment in major financial markets. The main factors that will influence
market sentiment in 2023 will be the monetary policy developments of the
major central banks. The ongoing interest rate increase cycle in the United
States is significantly dampening risk appetite in the equity market. A possible
softening of the position and the announcement of interest rate cuts may
stimulate risk appetite, also positively affecting CEE markets, including the
zloty. Locally, the focus of the markets will also remain on the war in Ukraine
and its possible escalation. It is particularly important in the context of the
exchange rate of the Polish currency. In the event of increased risk aversion,
the zloty, like other emerging market currencies, loses value. A fall in the
value of the Polish currency on the foreign exchange market may further
intensify upward pressure on prices in Poland and prompt the Monetary
Policy Council to resume the interest rate hike cycle.
Quality of the loan portfolio. Regularly recurring concerns about the quality of
the loan portfolio have so far not materialised. On the contrary, indicators in
all major product categories have even reached new minima. A great deal of
uncertainty continues as to how basic utility or energy charges will increase
in the coming months. In a particularly difficult situation are business owners
who are not protected by appropriate tariffs, causing their bills to rise several
times. In such a situation, it is precisely among businesses, and more
accurately in the SME sector, that the first signs of portfolio deterioration
may be emerging. A potential signal of this could be the October NBP data,
which, despite a general downward revision (restructuring of a large bank in
the sector), indicated a deterioration of the NPL ratio for the SME category by
0.3 p.p. compared to September 2022 (to 9.9%). However, the data for
December did not confirm the reversal of the trend, returning to near
historical lows. Other segments also recorded a slight improvement or
maintained the record lows of November.
Replacement of the WIBOR index. Contrary to original announcements, the
implementation of the new index was not fully in place from 2023. It was
decided to follow a gradual process, spread out until 2025.The new WIRON
index was based on short-term ("overnight") transactions. From December
2022, it may be used under new financial instruments. According to the
roadmap of the National Working Group on Reference Rate Reform (NGR),
WIRON-based consumer products will be available from 2024, while the
conversion of old WIBOR-based contracts is planned for 2025 and will include
a corrective spread. In light of the many other difficulties and burdens, this
change in its current form can be described as almost neutral for the banking
sector. According to year-end quotes, WIRON is 0.9 p.p. lower than the
previous indicator. Due to the characteristics of their calculation, this
difference will decrease even further during a period of stabilisation or falling
interest rates.
Capital position. In the last 2 months of the year, the capital position of the
banking sector improved significantly. The value of equity amounted to PLN
204 billion, compared with PLN 191 billion in October (according to PFSA
data). The main reason for this change is the significant fall in the yields of
government bonds on the markets (increase in valuation), which in turn
translates into an update of their value in banks' portfolios. Despite that, the
sector's total equity in November was still PLN 24 billion, or 10%, below its
peak two years ago. At the same time, the sector has struggled for years to
generate profits that would close the gap and allow it to grow further. The
net result after December at PLN 12.5 billion with such a significant increase
in interest rates should be assessed as weak. Admittedly, it is definitely
higher than that for 2020 and 2021, but this pandemic period may not be
considered an appropriate benchmark. It is more relevant to compare the
result with the 2016-2019 period, when the net result oscillated between PLN
13.0-13.9 billion. The poor results are the result of continuously increasing
regulatory burdens. In addition to cyclical charges such as the bank tax or
contributions to the Bank Guarantee Fund, additional charges are emerging.
In 2022, these included not only credit moratoria (PLN 12.4 billion incurred
only by the largest listed banks) and increased fees for the Borrower Support
Fund. This also includes a contribution to the Commercial Bank Protection
Scheme, which allowed one of the large banks to restructure in an organised
manner. The burden of claims from Customers with foreign currency loans
also continues to grow. Attempts to undermine the legitimacy of WIBOR-
based loans should also be assessed as highly threatening. In a scenario
similar to foreign currency lending, the consequences for the entire economy
would be extremely serious.
Foreign currency mortgage loans. Information on the impact and current
situation regarding CHF loans is described in Note 54 Litigation of the
Consolidated Financial Statements.
Challenges of sustainable development
The world is changing dynamically and faces many challenges, including those
related to sustainable development. Every year, the World Economic Forum
publishes The Global Risk Report. At the beginning of 2023, the organisation
identified the top 10 risks for the next 2 and 10 years.
Risks for the next 2 years:
1. Cost of living crisis
2. Natural disasters and extreme weather conditions
3. Geopolitical tensions
4. Failure to mitigate climate change
5. Violation of social cohesion and polarisation of society
6. Large-scale environmental damage
7. Failure to adapt to climate change
8. Widespread cybercrime and insufficient cybersecurity
9. Crisis of natural resources
10. Large-scale forced migration
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Risks for the next 10 years:
1. Failures in climate change mitigation
2. Climate change adaptation failures
3. Natural disasters and extreme weather conditions
4. Loss of biodiversity
5. Large-scale forced migration
6. Crisis of natural resources
7. Violation of social cohesion and polarisation of society
8. Widespread cybercrime and cyber insecurity
9. Geopolitical tensions
10. Large-scale environmental damage
In both a 2- and 10-year perspective, the greatest risks are those related to the
climate crisis and those affecting society.
However, research by, among others, the 2022 Edelman Trust Barometer
indicates that 52% of respondents believe that businesses are not contributing
enough to climate protection and 49% believe that business does not
sufficiently support equality of economic opportunities.
Therefore, it is important for governments, but also businesses, to be jointly
active in order to prevent threats and seek more sustainable global
development. At the same time, a number of legislative measures involving the
European Union, in addition to supporting sustainable development activities,
are becoming a challenge for their implementation and fulfilment.
2030 Agenda
The challenges of sustainable development have been recognised for many
years. That is why, in 2015, the 193 member states of the United Nations (UN)
adopted the 2030 Agenda. It defines the 17 Sustainable Development Goals
(SDGs) and assigns targets for each of them. These goals are designed to
ensure a dignified life, peace and economic development in the world, taking
into account environmental protection and the fight against climate change.
Paris Agreement
The discussion on fighting climate change has been going on for many years,
but it was not until the so-called Paris Agreement that ground-breaking key
agreements on targets to stop the rise in global temperature were made. At the
21st United Nations Climate Change Conference (COP21), targets related to the
following were set: limiting global warming below 2 degrees Celsius and
ultimately to 1.5 degrees Celsius relative to the pre-industrial era; adaptation
and climate change mitigation; and considering the compatibility of financial
sector action with climate goals.
European Green Deal
In order to comply, among other things, with the Paris Agreement, the
European Union has decided to aim for carbon neutrality by 2050. On 11
December 2019, the European Green Deal was announced, which is a roadmap
for a sustainable EU economy. The aim is to create a modern, resource-efficient
and competitive economy that will be carbon neutral in 2050 as well as to
separate economic growth from resource consumption and to ensure that no
individual or region is left behind.
An important part of the implementation of the European Green Deal is the Fit
for 55 package. This package is intended to revise and update EU legislation
and introduce new initiatives to bring EU policy in line with the climate targets
agreed by the Council and the European Parliament. The changes are intended
to help achieve an EU emissions reduction of at least 55% by 2030. The
proposals in the package are intended to be a consistent and balanced
framework for achieving the EU's climate goals.
In March 2018 the European Commission announced the EC Action Plan on
financing sustainable growth. The plan's objectives include redirecting capital
flows towards sustainable investments, managing financial risks resulting from
climate change or social issues, and supporting transparency and sustainability
in financial and economic activities.
Taxonomy
On 18 June 2020, the European Parliament and the European Council adopted a
regulation on the creation of the world's first classification system - the 'Green
List' for sustainable economic activities. The Taxonomy Regulation outlines a
general framework that will allow for the gradual development of an EU-wide
classification system for environmentally sustainable economic activities.
CSRD
On 10 November 2022, the European Commission adopted the draft Corporate
Sustainability Reporting Directive (CSRD). The European Commission's draft
amends the Non-Financial Reporting Directive (NFRD) from 2014 and is
expected to strengthen companies' obligations in this area. The new directive
aims to ensure that data disclosed by entities is comparable and reliable,
through the application of uniform European standards for reporting
sustainability information and mandatory verification of such data.
Prospects
Uncertainty has been the word that best describes the current reality for
several years now. Years of low or zero interest rates were followed by a period
of monetary tightening. The banking sector therefore hoped for a recovery in
profitability, while on the other hand fearing for the quality of loan portfolios.
Neither of these forecasts materialised as a result of the credit moratoria
introduced by law, which neutralised both trends, at least temporarily. The
banking sector enters another year severely weakened. The capital base has
been clearly diminished and further losses are very likely. The issue of foreign
currency loans still appears to be developing. The sector is currently awaiting
another judgment of the Court of Justice of the European Union, this time on
the legitimacy of remuneration to the bank, for the use of capital by the
Customer. An unfavourable outcome in this area could seriously threaten the
stability of the sector. Another uncertainty, extending beyond 2023, is the first
attempts to challenge WIBOR-based contracts, the number of which is several
times greater in relation to foreign currency loans.
In such circumstances, efficient capital management becomes a priority. Funds
should be allocated in segments that offer the best balance between returns
and security (credit and legal). The Bank plans to continue to remain a fully
universal institution. Instead, more emphasis will be placed on Customer
activity and depth of relationships. On a segmental basis, the Bank will strongly
focus on the affluent Customer segment, as well as private banking (where it
already holds a leading position). The Bank aims to increase the pace of
expansion in the corporate segment by raising its share of the total own
business mix. In addition, taking advantage of its leading position in the
agricultural market, the Bank will focus on offering its services in the
agricultural product processing industry.
At the same time, the Bank will focus on internal operational efficiency. Due to
limited revenue growth opportunities, the cost side will require extraordinary
attention. This will be a complex challenge, due to salary pressures resulting
from inflation. It should be noted that the latter is particularly strong in the
areas of new technologies, where the Bank sees the greatest potential for
growth. The optimisation and digitalisation of processes will also continue,
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which is intended to work in two ways. It will reduce costs, but also improve
Customer service, which will have a positive impact on Customer satisfaction.
The bank has remained committed to social and environmental issues for
years. These are increasingly getting into the heart of financial business. These
are happening as a result of new regulations, but also a change in public
attitudes. Anticipating such a direction, the Bank is strongly focusing on
development in this area, which it considers strategically important. New
products are introduced, new partnerships are established and work continues
to reduce the company's own carbon footprint. At the same time, an
intensification of ESG-based activities among market competitors is noticeable.
The Bank's aim is to remain in the lead and continue to set new standards in
this area, which will require even more dynamic action.
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 43
Tomasz Sepołowicz, IT Chapter Leader
Strategy execution
Pillar UP 44
Description of segments 45
Distribution channels 52
Operations and business support 53
Entities of the BNP Paribas Bank Polska S.A. Group 54
Pillar POSITIVE 57
Sustainable financing 58
Taxonomic disclosures 67
Positive banking 69
Social involvement 75
The Bank of Green Changes 81
Pillar STRONGER 87
Digitisation and innovation - IT strategy 87
Supporting innovation 91
Cybersecurity 92
Pillar TOGETHER 93
Good place to work 93
Wellbeing and employee health 102
Employees development 103
A diverse and inclusive workplace 105
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 44
Pillar UP
Pillar description
The GObeyond strategy is a growth strategy. Our goal is to increase the number of Customers served, strengthen our
market position and increase revenues. The Bank sees potential for development in all Customer segments.
Retail Banking and Personal Finance
The priority of retail banking and PF is to achieve high Customer satisfaction (NPS Top 3 on the market), which will result
in an increased number of the Bank's active Customers (by 0.5 million to 4.5 million) and strengthen their relationship with
the Bank. In response to Customer and employee feedback, the Bank will implement innovative products and services,
many in cooperation with internal (companies from the BNP Paribas Group) and external partners. We also plan even more
extensive employment of personalised communication based on advanced CRM and data analytics. Further digitisation of
Customer processes is to be implemented simultaneously with the remote availability of the Bank's experts within the
newly created omnichannel sales and Customer service model (over 90% of key processes for individual Customers are to
be available in remote channels; sales via digital channels are to exceed 50%). The Bank will also offer services that go
beyond traditional banking by using open banking solutions, contextual financing in e-commerce and offering products and
services related to the Sustainable Development Goals. Finally, the Bank plans active but sustainable development in the
main retail areas, i.e. achieving a 7% share in the market of new sales of accounts, cash loans and mortgage loans.
SME, Corporate and CIB Banking
The Bank wants to be the 1st choice for international Customers (an increase in the number of active Customers by over
22% compared to 2021) by leveraging the leading position of the BNP Paribas Group in Europe, its worldwide presence and
global solutions, products and expertise. We also strive to be the first choice Bank for large corporations by offering tailor-
made solutions and an excellent service model. The Bank will provide services to Polish corporations and SMEs using
remote and digital solutions while supporting the international expansion of our Customers with experience gained in 65
countries. We wish to increase the base of active SME and corporate banking Customers by over 18% compared to 2021. We
also strive for operational excellence in order to build positive Customer experiences. One of the key goals in this area is
the optimisation and shortening of the credit process. The Bank will also utilise its market leader position in the
agricultural segment and its unique competencies to strengthen its market position among food processors.
Strategic commitments and their implementation
Indicator
2025 strategic goal
2022 execution
NPS - Retail Banking and Personal Finance
TOP 3
7th place (group study)
% of key processes for individual Customers available
via remote channels
90%
66%
Number of active Customers (individual Customers and
micro-enterprises)
4.5 million
4.0 million
Sales via digital channels (individual Customers)
>50%
25.5%
Market shares in new sales (ROR accounts, cash loans,
mortgage loans)
7%
current accounts: 5.5%
(average after 3 quarters)
cash loans: 5.1%
mortgage loans: 7.1%
Number of active micro-enterprises
340 thousand
272 thousand
Number of micro companies active in digital channels
230 thousand
165 thousand
Maintaining the leading position in the agro segment
(share in the loan market)
>25%
26.4%
Increase in the number of active food processors
[vs 2021]
+30%
+17%
Increase in the number of active food processors
[vs 2021]
>18%
+5%
Increase in the number of active international
Customers [vs 2021]
>22%
+9%
Number of Customers active in digital channels
(corporate and SME banking)
37 thousand
30.1 thousand (GOonline Biznes)
Increase in loan volumes (corporate and SME banking
2025-2021)
+6%
annual average
+11%
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 45
Description of segments
Retail and Business Banking, Personal Finance
Characteristics of the area
The Retail and Business Banking area provides services to individual Customers, private banking services and services to
business Customers (micro-enterprises). The Bank provides services to the following Customer segments:
Retail Customers:
Mass Clients,
Premium Banking Customers, i.e. depositing assets in the Bank or through the Bank in the amount of at least PLN 100
thousand or having monthly inflows of at least PLN 10 thousand;
Private Banking Customers (Wealth Management), i.e. those who invest assets of at least PLN 1 million through the Bank.
Within the segment, there is a separate sub-segment called "Family Fortunes", i.e. Customers who invest assets of at
least PLN 10 million through the Bank.
Business Customers:
non-Agro, without full financial reporting (in accordance with the Accounting Act), with annual net revenues for the
previous financial year below EUR 2 million,
non-Agro, preparing full financial reporting, whose net sales revenue for the previous financial year was below PLN 4
million and whose credit exposure did not exceed PLN 1.2 million,
Agro, without full financial reporting, with annual net revenues for the previous financial year below EUR 2 million,
conducting activities classified according to selected PKD 2007 codes,
professionals: entrepreneurs without full financial reporting (in accordance with the Accounting Act) who practice
professions defined in a separate, internal document,
individual farmers with credit exposure below PLN 3 million,
individual farmers whose credit exposure is in the range between PLN 3 million and PLN 4 million, when the collateral on
arable lands covers at least 50% of credit exposure,
non-profit organisations (e.g. foundations, associations, trade unions, etc.),
cooperatives, housing associations, and property managers.
Private Banking – BNP Paribas Wealth Management offers an individual approach to every Customer and, additionally, a
holistic and relational approach, the so-called "family approach", including close family members or assets held in private
companies and other investment vehicles. BNP Paribas Wealth Management benefits from 40 years of experience in serving
affluent Customers, its established market position and the best practices of the BNP Paribas Group – the number 1 Wealth
Management company in the Eurozone. BNP Paribas Wealth Management Customers are guaranteed the services of an
experienced and qualified team – all advisors have EFPA certification of EFA and the highest level – EFP. The EFPA
certificate is a requirement for all Wealth Management Advisors. Additionally, our Wealth Management Advisors are the
first on the Polish market to have obtained the EFPA ESG certification in the field of sustainable development.
Personal Finance Banking is responsible for the product offer and management of consumer loans distributed through the
network of Retail and Business Banking branches and external distribution channels. This area provides the following
product groups: cash loans, credit cards, instalment loans, car loans, leasing (operating and financial), lease financing
(offered mainly in cooperation with BNP Paribas Leasing Services Sp. z o.o.) and long-term vehicle rental (in cooperation
with Arval Service Lease Polska Sp. z o.o.).
Implementation of key strategic initiatives in 2022
INITIATIVE
BNP Paribas – my main Bank
INITIATIVE
DESCRIPTION
More appealing products, implementation of an omnichannel environment and changes in the approach
to building lasting relationships. Optimisation of the digital UX, greater personalisation of Customer
experience and synchronisation of the use of data sources. Increasing awareness of the BNP Paribas
brand among Customers
ACHIEVEMENTS
building brand awareness by implementing the onboarding process for Customers who purchase s
instalment loans, car loans, credit cards or set up Premium bank accounts
second place in the NPS growth dynamics of the Retail Benchmark survey
the highest increase in NPS (by 27 points) compared to the brands observed among Micro Customers in
the Benchmark Pro study
open banking - Customers can view all their funds in a single online space, regardless which bank they
have an account in
implementation of a simple process for transferring accounts from other banks (carried out entirely by
the Bank) and for the transfer of an employee's remuneration to a BNP Paribas account
providing amenities for refugees from Ukraine: access to the "Account for Now", Ukrainian language
website, chat and online banking, dedicated onboarding process (including educational activities)
consolidation of the liabilities of a co-borrower (possibility of consolidating the liabilities of both the
first and second applicant)
introduction of a mortgage loan with interest rate fixed for 10 years
support in everyday banking:
- education in the areas of: mobile payments, investment and savings products, safe banking
- enabling the remote opening of accounts by Micro Customers through video-verification (for sole
proprietorships and Premium Customers)
- positioning the BNP Paribas debit card as the card of first choice for current payments
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 46
INITIATIVE
BNP Paribas – my main Bank
- instructional videos (user manual) about: confirming online payments with the 3D Secure service,
enabling mobile authorisation and adding a card to swatch pay
- systematic optimisation of online card payments with 3DSecure, which improves the Customer
experience
providing self-service processes; key implementations in 2022 include:
- IKE / IKZE products available in online banking
- activation of the mobile application with the PESEL or passport number
- tax transfer to the revenue service and foreign transfer
- early repayment order
- BLIK on the phone, 24/7 transfers, repayment of instalments and credit card
- international transfers and charity transfers
- account balance shown in online banking after transactions (also on holidays/weekends)
KEY FIGURES
increase in the number of Customers for whom BNP Paribas Bank Polska S.A. is the bank of first choice
from 0.72 million at the end of 2021 to 0.78 million at the end of 2022.
"Account for Now" – 88 thousand new Customers and PLN 611 million of new funds on accounts
1.1 million active mobile users, i.e. +20% y/y
INITIATIVE
Development of digital and omnichannel sales
INITIATIVE
DESCRIPTION
Sale of all consumer loans and mortgages in digital channels or in the omnichannel model. Widespread
use of "pre-approved" offers and open banking solutions. Increased sales based on data analytics, AI and
personalisation. Expansion of the product offer available in digital channels.
ACHIEVEMENTS
extended access to fast, simple and convenient applications for "pre-approved" offers available in an
internal and external database
expanding the credit card offer available in electronic credit card application processes; Mastercard
Gold and Mastercard World Elite cards were added to the previously available Mastercard Standard
card
the possibility of spreading the cost of selected transactions into convenient credit card repayment
instalments, accompanied by promotional terms for transactions with selected Bank Partners
facilitated access to the cash loan offer
feature allowing the submission of applications for car loans directly from the websites of selected car
manufacturers.
implementation of "My Electric" financing – government subsidy for electric vehicles: cars and vans up
to 3.5t and motorcycles – systemic solutions for leasing and rental (car loan implemented in 2021)
KEY FIGURES
PLN 402 million – sales of cash loans in remote channels in 2022
over 60 thousand credit card transactions, spread over instalment plans – increase by 238% y/y
shortened time from application submission to disbursement of funds for a cash loan by 31% y/y
INITIATIVE
Convenient platform for entrepreneurs using API solutions
INITIATIVE
DESCRIPTION
The Bank as a modern platform using API to offer the products and services of external partners. Support
for the creation of sustainable, safe and innovative services tailored to the needs of Customers. The API
as a means of offering contextual services at selected Customer touchpoints outside the banking
ecosystem
ACHIEVEMENTS
GOksięgowość (GOaccounting) – modern online accounting services for Customers running their own
business. The Customer can choose a single module or comprehensive accounting. The service is
available entirely online, 24/7. Registration and contract signing do not require an office visit.
GOdealer – a modern platform for currency exchange enabling, i.a., concluding FX transactions by
phone 24/7 (throughout the year), real-time tracking of exchange rates, instant transactions, placing
orders pending up to 60 days for over 80 currency pairs, etc.
SoftPOS – a payment terminal in the Customer's phone or tablet (mainly for micro-entrepreneurs,
those operating outdoors, e.g. taxi drivers, couriers), which accepts contactless payments (available
from September 2022).
BUSINESS UP! – cooperation with the Polish Entrepreneurship Foundation, which prepared a free
training programme for the Bank's Customers devoted, i.a., to tax changes resulting from the Polish
Deal and the impact of these changes on business, opportunities for online business development,
security in cyberspace, legal aspects (including tax issues), etc.
in cooperation with Arval, we offer:
- long-term rental, tailor-made to the needs of Customers owing to an AI model that predicts potential
interest in renting based on analyses of previous Customer behaviour
- a comparison website that clearly and transparently shows the differences and benefits of individual
services, including: leasing, rental, car loan
- offers in social media: Facebook, LinkedIn and Instagram
- digital rental application process (GOonline, GOmobile)
in cooperation with BNP Paribas Leasing Solutions, we offer:
- a special offer during the Agro Offensive (enabling cooperation with Agricultural Chambers,
Agricultural Property Agencies, ARiMR), Biznes Offensive (Craft Support Centres, Marshal Offices,
Entrepreneurship Days) and a special autumn leasing offer – one face of BNP and BNPPL for micro-
entrepreneurs
- new green financing offer for heat pumps
KEY FIGURES
GOksięgowość (GOaccounting): over 5,000 platform users
GOdealer: 1.4 thousand Micro Customers, 8.6 thousand transactions via the mobile channel, total
transaction volume of over PLN 390 million
SoftPOS – new sales increase by 40% (from implementation in September 2022)
BUSINESS UP!: over 1.4 thousand participants in summer and autumn courses
an 80% increase in the number of Customers interested in the green car offer implemented in
cooperation with Arval
Leasing Micro: PLN 322.5 million of financed contracts
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 47
INITIATIVE
New distribution model – the establishment of omnichannel Customer service
INITIATIVE
DESCRIPTION
Transformation of the distribution model – a key element in building an omnichannel Customer service
model. Integration of front-end systems with one Customer view. Relationship management supported by
personalised communication based on CRM. New system of autonomous, self-organising Customer
service teams.
ACHIEVEMENTS
implementation (as the first bank in Poland) of call centre consultant and Customer verification in
mobile banking during telephone conversations (safety and savings of approx. 1-1.5 minutes per
conversation)
- possibility of arranging meetings with Virtual Branch advisors on the Bank's website and
streamlining the process of arranging meetings in the Bank's branches (notifications, possibility of
cancellation, etc.)
popularisation of BlikP2P (i.e. transfer to phone) increasing transactionality and Customer engagement
in the mobile channel
wider use of a voicebot for Customer NPS surveys (over 5,000 surveys per month at a cost 80% lower
than before), in telephone sales processes, and in debt collection processes (over 2,000 repayment
declarations automatically accepted by the bot per month)
implementation of several paperless initiatives in the sales network, including: Autenti signature for
corporate Customers (own payment, third party payment, withdrawal) and for third party payments for
retail Customers, electronic reports confirming cash transfers, commissions for instalment loans
charged jointly with instalments etc.
KEY FIGURES
1.1 million active mobile users +20% y/y
increase in the number of logins to mobile banking +19% y/y
increase in the number of GOmobile transactions +49% y/y
increase in the number of BLIK payments +65% y/y
increase in mobile payments for tickets and parking +83% y/y
about 300,000 users of the newly implemented BlikP2P service
Brokerage House of BNP Paribas Bank Polska S.A.
The Brokerage House of BNP Paribas Bank Polska S.A. (hereinafter: Brokerage House) focuses on providing services to retail
Customers. The range of services provided is complementary to the Bank's offer of investment products. The Brokerage
House also provides its services to selected institutional Customers, including Open Pension Funds, TFIs and other entities
managing entrusted assets. Additional activities of the Brokerage House include portfolio management and investment
advisory services for the Premium Banking and Wealth Management segments.
The range of products offered by the Brokerage includes a wide selection of investment funds managed by well-known
Polish and foreign Investment Fund Companies.
Key figures for the Brokerage House in 2022:
sales of over 694 funds managed by 24 companies,
PLN 3.4 billion – the value of Customer assets in investment funds distributed through the Brokerage House at the end of
2022,
PLN 1,161 billion – the value of investment certificates issued in 2022 for Customers of the Brokerage House in
cooperation with the BNP Paribas Group (increase by 6% y/y),
PLN 107.8 million – total revenue from brokerage services and investment products distribution (increase by 12% y/y),
decrease in commission revenues from stock exchange transactions of Brokerage House Customers by 32% y/y,
decrease in assets in portfolio management service for Wealth Management Customers by 19% y/y,
the results on investment advisory services and portfolio management services grew significantly above their
benchmarks.
Table 5. Share of the Bank's Brokerage House in turnover on the WSE
31.12.2022
31.12.2021
volume
share
volume
share
Equities
PLN million
3,015.65
0.51%
4,381.73
0.66%
Bonds
PLN million
213.99
1.81%
231.03
5.51%
Contracts
pcs.
235,546
0.77%
138,892
0.59%
Investment certificates
PLN million
0.96
1.04%
1.69
1.78%
Options
pcs.
37,430
5.96%
30,659
5.51%
Structured products
PLN million
253.48
3.90%
445.30
7.16%
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 48
Corporate and Small and Medium Enterprise Banking
Characteristics of the area
Corporate Banking offers a wide variety of financial services to large and medium-sized enterprises as well as to local
government entities with an annual turnover equal to or exceeding PLN 60 million, or in the case of whom the Bank’s
exposure is equal to or greater than PLN 18 million, as well as to entities operating as part of multinational capital groups.
Corporate Banking Customers are classified into 4 key groups:
Polish corporations with an annual income greater than PLN 60 million or with a credit exposure greater than or equal to
PLN 18 million (or PLN 40 million for business entities related to agricultural production),
international Customers (companies operating in international capital groups),
the largest Polish corporations with net sales revenues above PLN 600 million,
public sector and financial institutions.
Additionally, an Agro sub-segment and a Non-agro sub-segment function within the aforesaid groups.
The Small and Medium Enterprise (SME) Banking area provided services to three main Customer sub-segments:
Agro Customers with full financial reporting and net sales revenues from PLN 4 million to PLN 60 million for the last
financial year and the Bank’s credit exposure not exceeding PLN 18 million. This sub-segment also includes agricultural
producer groups (where the Bank’s credit exposure does not exceed PLN 40 million) and field organisational units of the
State Forest Enterprise, i.e. regional directorates, forest inspectorates etc., regardless of the scale of their turnover and
credit exposure;
Non-Agro Customers – a sub-segment that includes entities with full financial reporting, net sales revenues for the last
financial year from PLN 4 million to PLN 60 million and credit exposure not exceeding PLN 18 million, as well as public
finance entities with a budget of up to PLN 100 million. This sub-segment also includes churches and other religious
organisations and their subsidiaries.
Farmers (i.e. business entities conducting agricultural production activities) with full financial reporting, net revenue for
the previous financial year between PLN 0 and PLN 60 million and credit exposure not exceeding PLN 40 million, as well
as individual farmers if their credit exposure is between PLN 4 and 40 million or between PLN 3 and 4 million if the
collateral on agricultural land covers less than 50% of credit exposure.
Implementation of key strategic initiatives in 2022
Corporate Banking
INITIATIVE
A new approach to the Customer, taking advantage of the strength and potential of the Group
INITIATIVE
DESCRIPTION
A leader in the sector of international Customers and in terms of cooperation with the largest Polish
corporations. A unique approach based on the strong position of the BNP Paribas Group, especially in
terms of global relations and the product platform.
ACHIEVEMENTS
implementation of a new organisational structure through the creation of the Strategic Customer
Division (including international Customers and the largest Polish corporations) and the Corporate
Customer Division, which support further concentration and cross-sell in these Customer segments
strengthening the Bank's position on the International Customer market (first place in terms of the
number of relations)
increase in the share of revenues from cooperation with international Customers in total revenues
implementation of dedicated after-sales service for Strategic Customers
improving the process of communication with international Customers via the Business Service Centre
developing processes of cooperation with Customers in the field of financing projects and ventures
related to sustainability – granting Sustainability Linked Loans
KEY FIGURES
increase in the number of active international Customers: +267 Customers in 2022, i.e. +9% y/y,
increase in net credit volumes by 16% y/y
dynamic increase in deposit volumes by 34% y/y
PLN 3.4 billion – total value of the sustainable finance portfolio at the end of 2022.
INITIATIVE
New Customer service model
INITIATIVE
DESCRIPTION
Transformation of the sales area by providing Customers with the widest range of self-service solutions
as well as centralised and dedicated after-sales service.
ACHIEVEMENTS
y/y increase in the gross result of the Corporate Banking area owing to the dynamic growth of income,
good quality of the loan portfolio and low cost of risk
adapting the Customer service model to the new sales system
improvement of the call-back process – automatic call-back to Customers functionality
a new model of handling the KYC process
KEY FIGURES
acquisition of over 1.0 thousand new Customers in 2022, i.e. +16% y/y
increase in the number of active Customers by 10% y/y
increase in the use of the Business Service Center: 86% of Customers provided with Customer service
compared to 78% at the end of 2021
maintaining a very good average waiting time for connections with Customer service consultants: 97.4%
of calls answered within 10 seconds.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 49
Small and Medium Enterprise (SME) Banking
INITIATIVE
New Customer service model
INITIATIVE
DESCRIPTION
Transformation of the sales area by providing Customers with the widest range of self-service solutions
as well as centralised and dedicated after-sales service
ACHIEVEMENTS
y/y increase in the gross result of the SME Banking area owing to the dynamic growth of income, good
quality of the loan portfolio and low cost of risk
a new model of handling the KYC process
implementation of a new Customer service model – Remote Advisor Team dedicated to Customers who
prefer active remote contact with the Bank
INITIATIVE
New Customer service model
extension of the Customer portfolio model as part of Customer service – introduction of a dedicated
Account Manager for a selected group of Customers
KEY FIGURES
acquisition of 1.9 thousand new SME Customers in 2022, an increase of 13% y/y
increase in the number of active Customers by 600 in 2022
increase in the use of the Business Service Zone: 84% of SME Customers provided with Customer service
compared to 73% at the end of 2021
maintaining a very good average waiting time for connections with Customer service consultants: 81%
of calls answered within 20 seconds
Other activities of business lines
INITIATIVE
ACHIEVEMENTS
INNOVATIVE PRODUCTS AND SERVICES
KEY FIGURES
CASH MANAGEMENT /
E-BANKING
continued development of GOonline Business internet
banking
increased use of GOmobile Business mobile banking
new versions of several modules: Bills, Self-Service Zone, Loans, Collection, Authorisations,
Cash and Deposits
pilot launch of the new module "Payments, Statements and Counterparties" for selected
Customers
implementation of a mobile token for authorising payments in GOonline Business
increase in the number of digital Customers by 700 y/y
8.3 thousand active users, i.e. +19% y/y
CASH MANAGEMENT /
CUSTOMER LIFECYCLE
significant increase in the automation of onboarding
and post-sales processes
implementation of video verification for onboarding and after-sales processes
fully automatic process of opening auxiliary accounts in GOonline Business
significant increase in the use of Autenti electronic signatures (the process is available for
over 100 types of contracts and instructions)
enabling Customers to submit instructions signed with a Trusted Signature (ePUAP)
implementation of the digital KYC review process (KYC eApplication)
increase in the number of orders in the Self-Service GOonline Business module
to over 27,000 in Q4 2022, i.e. by over 30% y/y
3.1 thousand accounts opened automatically in GOonline Business
86% of new relationships opened via digital onboarding eForm
FINANCING BUSINESS
CUSTOMERS
implementation of credit process improvements for
SME segment Customers leading to shortened credit
application processing time (TTY)
preparation of new paths for the credit process in the
SME segment as a basis for further automation and
digitisation
development of a prototype decision-making engine (a set of credit decision-making rules)
and its pilot application for credit decision-making in SMEs
extending the credit eApplication to include factoring transactions for SME segment
Customers
extension of the eVerification module (verification of external and internal databases in the
credit process)
improved relationship management within groups of related entities in order to improve
credit risk assessment
development of standard credit structures enabling quick automatic credit decisions
276 SME credit decisions based on the decision engine prototype (Median TTY =
1.3 days)
increase in credit exposure for SME Customers by 4% y/y
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 50
Food & Agro
Characteristics of the area
BNP Paribas Bank Polska S.A. (hereinafter: the Bank) provides a comprehensive offer for the food and agro segment,
including accounts, deposits, loans and farmers’ insurance (both voluntary and mandatory).
Micro and SME Customers
The Bank's credit offer includes the following loans:
working capital: overdraft collateralised with a mortgage (Agro Ekspres), loan with a BGK guarantee and interest
subsidies,
Farm financing investment loans for farmers and Agro companies – Agro Progres,
preferential loans with interest subsidy or partial repayment of capital (thanks to an agreement with the Agency for
Restructuring and Modernisation of Agriculture).
Apart from its own offer, the Bank provides additional services addressed to farmers developed in cooperation with third
parties, such as Generali Agro insurance. It also conducts sales campaigns such as "Agro autumn 2022" (for farmers and
processors) and “With us, you won’t overpay for your loan" (for Micro Customers).
Corporate Customers
The Bank's offer for Corporate Banking Customers focuses on:
business development through the use of unique knowledge and precise understanding of the sector's entire value chain
(farmer, processor, distributor, consumer) as well as its ecosystem (macro environment, policy, technology, international
trade, suppliers, recipients), including the development of cross-segment financing (value chain financing),
preparation of sectoral analyses including changes in industry trends,
initiating cooperation with the BNP Paribas Group with regard to Food & Agro Customers,
sectoral recommendations for significant credit transactions (positioning of the company in the industry and peer group),
running and developing the Agronomist platform, which provides reliable knowledge and useful tools for the digital and
sustainable transformation of the agri-food sector.
Implementation of key strategic initiatives in 2022
INITIATIVE
Agronomist – an innovative way of building relationships and sharing knowledge
INITIATIVE
DESCRIPTION
Creating a portal for farmers and entrepreneurs from the Food & Agro (F&A) industry who want to
develop in line with market trends. Providing knowledge and tools to support both the transformation
towards sustainable agriculture and the digital transformation. The content of the portal covers the
entire F&A value chain with a special focus on local communities.
ACHIEVEMENTS
Providing new, unique tools and functionalities that respond to the needs of entities operating in the agri-
food sector:
RegAgri Explorer – the first tool in Europe showing the potential of agricultural soil to store carbon
dioxide from the atmosphere by 2050, if various regenerative agriculture practices are applied. The
Bank is the first financial institution to support the attainment of sustainable development goals by
providing a free tool aiding farmers and agricultural producers in the transformation towards carbon
agriculture. The tool received the Innovative Agricultural Product 2022 award
Water footprint calculator – the first Polish language calculator that allows one to calculate the water
footprint from agricultural production along with water balance and irrigation efficiency. The calculator
is a new functionality of the Agroemisja tool, which helps to calculate the emissivity of production
Your weather – the weather module received new functionalities useful for agricultural producers: soil
temperature and humidity, as well as evaporation (with an accuracy of 1.5 km)
campaign on regenerative agriculture, i.e. an agricultural production model that increases, i.a., soil
vitality, improving the quantity and quality of crops, while saving expenses on fertilisers and plant
protection products. The Bank is among the leaders of this transformation
educational materials – inspiring video recordings with the Bank's Customers (available on the
Agronomist platform) presenting their achievements in the field of the digital and sustainable
transformations
KEY FIGURES
over 135 thousand users
more than 50% women users
over 659 thousand visits in 2022
INITIATIVE
Knowing the Customer as the basis for building profitable relationships and increasing
Customer satisfaction
INITIATIVE
DESCRIPTION
Further expansion in the food production value chain based on industry know-how. Tailored service
model for current and future key Clients from the F&A industry. Improvements in the credit process.
ACHIEVEMENTS
implementation of a new corporate Customer service model
in-depth analyses of markets and selected sub-sectors of the agri-food industry
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 51
INITIATIVE
Knowing the Customer as the basis for building profitable relationships and increasing
Customer satisfaction
intensive analytical activities and knowledge-sharing in relation to the market implications of Russia's
war against Ukraine
active participation in numerous economic and industry events. Close cooperation with a number of
organisations from the agri-food sector. Inspiring interviews with leaders of the food sector in Poland
as part of the "Food Cabinet" series.
development and implementation of business analytics tools ensuring quick and effective monitoring of
the agri-food segment Customer portfolio
KEY FIGURES
increase in the volume of loans in the Corporate Banking Segment by 20% y/y
PLN 3,997 million of new financing for Food & Agro corporate Customers – increase by 45% y/y
increase in the number of active food processors by 17% y/y
Corporate and Institutional Banking
Characteristics of the area
Corporate and Institutional Banking (CIB) provides a wide range of products addressed to both the largest Polish
enterprises and medium-sized companies. Through the Custody Services Department, the offer is also addressed to
insurance companies as well as pension and investment funds.
CIB delivers the BNP Paribas Group’s comprehensive financial and risk management solutions to its Customers in Poland,
including:
advisory services related to mergers, acquisitions and restructuring,
advisory services related to transactions on capital markets,
arranging transactions on currency and money markets,
financing the current operations of enterprises,
financing of acquisitions and investment projects,
management of cash flows, financial liquidity and optimisation of working capital,
sale of financial market products, hedging currency, interest rate and commodity price risks,
arranging the issue of debt securities.
In addition, we perform tasks in the field of market risk management in the trading book, price quotations of currency
market instruments and interest rate instruments (including transactions on the derivatives market), as well as
determining the Bank's exchange rates and structuring and managing risk related to the Bank's structured products.
Implementation of key strategic initiatives in 2022
INITIATIVE
A new approach to the Customer, taking advantage of the strength and potential of the Group
INITIATIVE
DESCRIPTION
A leader in the sector of international Customers and in terms of cooperation with the largest Polish
corporations. A unique approach based on the strong position of the BNP Paribas Group, especially in
terms of global relations and the product platform
ACHIEVEMENTS
increase in international Customer business dynamics as a consequence of changing the organisational
structure and appointing dedicated dealers and product specialists
KEY FIGURES
increase in cross-sell both as regards FX flow products (+31% y/y) and derivatives (+34% y/y)
INITIATIVE
New Customer service model
INITIATIVE
DESCRIPTION
Transformation of the sales area by providing Customers with the widest range of self-service solutions
as well as centralised and dedicated after-sales service
ACHIEVEMENTS
implementation of the mobile version of the FX Pl@net website: GOdealer – another element of building
digital access to the Bank's products
KEY FIGURES
increase in the volume of corporate Customers transactions in the FX Pl@net application (+33% y/y)
increase in the number of active Clients (+15% y/y) and transactions in the FX Pl@net application (+11%
y/y)
Other banking activity
Other banking activity of BNP Paribas Bank Polska S.A. (hereinafter: the Bank) is mainly operated by the Asset and Liability
Management Division (hereinafter: ALM Treasury). ALM Treasury’s task is to ensure an appropriate and stable level of
funding to guarantee the security of the Bank’s activities and compliance with standards defined in the applicable laws, as
well as to reduce the sensitivity of the Bank’s net interest income to changes in market interest rates.
The ALM Treasury Division combines the features of a business line with those of a competency centre responsible for the
management of:
interest rate risk,
current and structural liquidity of the Bank,
structural currency risk,
internal transfer prices for all deposit and credit products offered by the Bank (including their determination).
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 52
Tasks carried out by the ALM Treasury Division cover both the prudential aspect (compliance with external regulations and
internal orders) and the optimisation aspect (management of the cost of funding and generation of the result from the
management of the Bank’s balance sheet items).
One of the key risk management mechanisms in place at the Bank is a systemic transfer of structural risks from all
business lines to the ALM line. Structural risks include: currency risk, liquidity, banking book interest rate. The ALM Line
manages those risks centrally. Risk is transferred mainly through the transfer pricing system, which reflects the business
financing strategy adopted by the Bank.
The key obligations entrusted to ALM Treasury are ensuring a balanced liquidity position while maintaining optimised costs
of the Bank’s operations and an appropriate structure of assets and liabilities, including sensitivity to interest rate changes.
Other tasks of ALM Treasury include:
management of an internal transfer pricing system,
balance sheet analysis,
modelling and measuring liquidity and interest rate risk for the Banking Book,
managing issues of debts securities,
arranging long-term credit facilities,
obtaining new sources of financing,
cooperation with business lines supporting sustainable development,
coordinating the securitisation of the non-banking Customer portfolio,
organising the activities of the Assets and Liabilities Committee (ALCO).
During the COVID-19 pandemic and after the outbreak of the war in Ukraine, the Bank adjusted internal product behaviour
models affecting the Bank's interest rate and liquidity risk profiles on an ongoing basis. ALM Treasury cooperates with the
business lines through regular meetings and consultations to optimise the Bank's product structure and maintain the
Bank's profitability at the maximum possible level in the current macroeconomic conditions.
Cooperation with financial institutions
As at 31 December 2022, the Bank was a correspondent bank of ca. 1,000 other banks and held 52 NOSTRO accounts for 25
major currencies in other banks.
The Bank maintains 33 LORO accounts denominated exclusively in PLN for foreign banks belonging to the BNP Paribas
Group. LORO accounts maintained in the Bank’s books constitute an external source of sourcing cost-free working capital
for the Bank’s operations. Such accounts are used mainly for purposes of Customer and bank-to-bank transfers.
In 2022, the Bank continued its cooperation with other domestic and international financial brokers and banks, which
enabled the conclusion of a wide range of treasury and deposit transactions. A number of contracts were concluded with
new and existing contractors from these segments and steps were taken to sign new contracts, in line with ISDA and Polish
Bank Association recommendations.
Based on designated selection criteria, in November 2022, the National Bank of Poland extended the term of the
"Agreement on performing the function of a Money Market Dealer" concluded on 14 December 2020 (the renewed
Agreement is valid from 1 January 2023 to 31 December 2023).
Distribution channels
Branches
From 1 April 2022, the Bank's branches changed their name to Customer Centres. They operate within 153 Advisory
Centres, divided into 5 macro-regions (North, West, Center, East and South). The simplification of the structure and the new
work organisation model in the retail network will result in even faster responses to the needs of Customers in the
changing environment.
As at 31 December 2022, the Bank had 410 Clients’ Centers (including 14 partner outlets). The branch network was
supplemented by 15 Wealth Management Centres.
As part of the network optimisation project, 285 branches were closed between 31 October 2018 and 31 December 2022 (17
branches were closed in 2022, including 1 partner branch).
In 202 Centres (including 3 partner outlets) cash services were provided exclusively through self-service devices.
As at 31 December 2021, the Bank had 103 centres with the “Barrier-free facility" certificates, issued by the Integration
Foundation for good service practices for people with disabilities.
All the Bank's branches have been awarded the OK SENIOR® Certificate, which confirms that senior Customers (60+) are
served in a safe, transparent and accessible manner.
Since January 2022, the Corporate Banking sales network consists of two divisions:
The Strategic Clients Division, organised within the structure of the Bank's headquarters, is responsible for relations with
international Customers, the largest Polish corporations as well as financial institutions and selected public sector
entities,
The Commercial Clients Division consists of three Corporate Banking Regions: Central, Southern and Western, with a total
of 14 Corporate Banking Business Centres located in the largest business centres of Poland, thus ensuring a wide
geographical and sectoral coverage. The Division is responsible for relations with Customers whose net sales revenues
range between PLN 60 and 600 million.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 53
A dedicated Corporate Customer Service Centre provides after-sales service for Corporate Banking Customers. Access to
products and services is offered via modern online and mobile banking systems.
From January 2022, the SME Banking sales network consists of three SME Banking Regions: Central, Southern and Western,
with a total of 34 specialised SME Business Centres located in cities with the greatest potential.
The Bank's SME Customer service model is relational. At its centre are the individual services of an Advisor, who is
responsible for the entire relationship between the Customer and the Bank. As part of the Bank's wide range of products
and services addressed to small and medium-sized enterprises – and to fully meet Customers' needs – teams of specialists
are dedicated to helping SME Customers, offering a high standard of sales services and product consulting, based on
knowledge and experience in the field of cash management, treasury, leasing, factoring as well as trade servicing and
financing.
SME Customers can manage their accounts via online and mobile banking channels offered by the Bank. In everyday
contact with the Bank, Customers can also count on support provided by the Business Service Zone, i.e. a dedicated
telephone Customer Service Centre.
Cooperation with intermediaries
At the end of December 2022, the Bank's Retail and Business Banking Division cooperated in the acquisition of banking
products:
based on outsourcing agreements – with 11 external outsourcing intermediaries, 6 outsourcing intermediaries operating
exclusively for the Bank and 13 franchise partners,
based on marketing agreements – with 223 contractors.
in the area of Personal Finance Banking – with 13 nationwide intermediaries and with 2 online intermediaries – based on
outsourcing agreements regarding the acquisition of the cash loan product.
ATM and cash deposit network
As at 31 December 2022, the Bank's branches contained:
537 dual-function devices processing contactless deposits and withdrawals with Bank cards and BLIK, as well as cash
withdrawals using Google Pay and Apple Pay, and
30 ATMs supporting only standard withdrawals and transactions made available by the VISA and Mastercard systems.
In addition, two dual-function devices and two ATMs operated outside the Bank's centres.
Operations and business support
Implementation of key strategic initiatives in 2022
INITIATIVE
Process excellence
INITIATIVE
DESCRIPTION
Optimisation, automation and digitisation of all key processes to improve Customer service quality and
cost-effectiveness. Developing the mining process to support process owners in process management.
Promoting the Lean culture and continuous process improvement by creating a dedicated Lean training
programme and community.
ACHIEVEMENTS
efficiency and quality - improving the documentation of mortgage loans and Micro loans
new model of operations: panels with experts from the Operations Division – a project based on three
pillars (optimisation, partnership and effectiveness) aimed at improving the quality of Customer service
(Customer-centricity)
EvaChatbot – easier and faster Customer service. Implementation of new topics on handling after-sales
orders Addition of a "Customer Service" mode for Advisors.
Robotic Process Automation – robotisation of processes across the Bank to increase efficiency:
in the KYC process,
in the area of servicing credit holidays and annexing mortgage loans due to the change of a variable
rate to a fixed rate,
Trade Finance processes,
implementation of a new system for handling incoming correspondence
KEY FIGURES
increase in the quality indicator of mortgage loans and Micro loans by +10% and +20%, respectively
decrease in the number of FTEs related to improving efficiency
reduction of processing time and improvement of efficiency in automated processes by at least 40% y/y
186 active robots
automatic processing and control in KYC processes at level 37
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 54
Entities of the BNP Paribas Bank Polska S.A. Group
BNP Paribas Towarzystwo Funduszy Inwestycyjnych S.A.
BNP Paribas Towarzystwo Funduszy Inwestycyjnych S.A. (hereinafter: BNPP TFI or the Company) has been carrying out
business in the financial services industry since 1992. Before that date, it was active on the Polish capital market as a
brokerage house.
BNPP TFI operates based on the authorisation of the Polish Financial Supervision Authority regarding investment fund
establishment and management, as well as intermediation in the sale and redemption of units and shares in foreign funds.
In 2022, the following significant events occurred in relation to the Company’s operation:
A fund managed by the Company – BNP Paribas Obligacji – received a distinction awarded by the "Analizy Online"
industry portal in the category of Polish long-term debt securities,
transformation of the BNPP Debt Securities Subfund into the BNPP Short-term Debt Securities Subfund – offering
Customers a strategy delivering higher current yield with limited volatility of fund units,
from June 1, the offer includes 6 new sub-funds (in cooperation with BNP Paribas Asset Management) investing in global
markets, whose investment policy is based on ESG principles.
As at 31 December 2022, the Company managed the following funds with a total value of PLN 2,503.7 million:
BNP Paribas FIO – started its operations in March 2016. It comprises 7 sub-funds with a diversified investment policy,
enabling Customers to invest in various classes of assets on the local and global market. BGŻ BNP Paribas FIO also offers
an Individual Retirement Account: BNP Paribas – IKE and an Individual Pension Insurance Account: BNP Paribas – IKZE. As
at the end of December 2022, assets under management amounted to PLN 1,308.8 million,
BNP Paribas Parasol SFIO – was taken over by the company from Ipopema TFI in January 2016, once a relevant
authorisation had been granted by the Office of Competition and Consumer Protection. At the end of May 2022, 6 new
master-feeder sub-funds were launched within the fund and it now comprises nine sub-funds. As at the end of December
2022, the worth of assets under management was PLN 327.1 million,
BNPP FIO – created in 2005. It comprises three sub-funds investing mainly in the Polish market. As at the end of
December 2022, the worth of assets under management was PLN 641.2 million,
BNP Paribas Premium SFIO – created in July 2014, with four separate sub-funds (one of them, BNP Paribas Active, is being
liquidated). Fund management was acquired as a result of the merger with Riviera TFI. The value of assets at the end of
December 2022 was PLN 53.5 million,
FWR Selektywny FIZ – created in May 2014, fund management was acquired as a result of the merger with Riviera TFI.
The value of the fund’s assets at the end of December 2022 was PLN 2.6 million. The fund under liquidation.
BNP Paribas PPK SFIO – created to offer Employee Capital Plans to Customers. It comprises nine sub-funds (defined date
funds). The value of the fund's assets at the end of December 2022 amounted to PLN 170.5 million.
BNPP TFI has partnered with the Bank to distribute units in the funds that it offers under an agreement concluded with the
Brokerage Office of the Bank.
In 2022, the Company recorded net outflows of PLN 1,901.3 million.
Table 6. Basic financial data of BNP Paribas TFI S.A.
thousand PLN
31.12.2022
31.12.2021
31.12.2020
Balance sheet total
37,224
41,206
36,748
Long-term investments
450
4,859
44
Equity, including:
31,307
33,909
30,087
net financial result
(2,730)
4,660
1,086
The share capital of BNPP TFI amounts to PLN 16,692.9 thousand and is divided into 695,538 shares with the nominal value
of PLN 24.00 each. As at 31 December 2022, its equity amounted to PLN 31.3 million and was sufficient to ensure the
security of the entity's current operations.
In 2022, the Company's net financial result was negative and amounted to PLN 2.7 million (compared to PLN 4.7 million in
2021).
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 55
BNP Paribas Leasing Services Spółka z o.o.
BNP Paribas Leasing Services Sp. z o.o. (hereinafter: the Company) cooperates with the Bank to offer a wide range of leasing
products to Customers from the Micro, Personal Finance, SME and corporate segments. Since 2018, based on a decision of
the Bank’s Management Board, the Company has taken over the role of the sole entity in the Bank’s Capital Group that
provides leasing services for Customers of the above segments, dynamically increasing the scale of operations every year.
Table 7. Basic financial data of BNP Paribas Leasing Services Spółka z o.o.
thousand PLN
31.12.2022
31.12.2021
31.12.2020
Balance sheet total
6,088,244
5,544,614
4,028,835
Long-term investments*
5,745,766
4,755,620
3,610,100
Equity, including:
58,466
10,763
1,459
net financial result
47,703
9,304
4,211
* receivables due to granted financing
2022 was a time of sales challenges for the Company. There was a noticeable decline in Personal Finance sales due to the
unavailability of assets in the automotive industry. The long waiting time for car deliveries meant that demand consistently
exceeded supply and sales results in the sector were well below expectations. During this period, the Company consistently
implemented the planned financing levels in the corporate Customer segment.
The Russian invasion of Ukraine, which began in February, significantly impacted the Company's operations. The
commercial situation exacerbated issues with the availability of financed assets, and the rising inflation – accompanied by
a series of interest rate increases – resulted in s significantly reduced level of new financing provided. The market's
uncertainty limited the demand for financing, and the price (driven by interest rates) limited the possibilities of some
Customer groups.
Despite the difficult circumstances, at the end of 2022, the portfolio of financed assets reached a record level of PLN 5.7
billion (an increase of 21% compared to the end of 2021). This was possible due to the very good condition of the corporate
Customers sector and a slight rebound in the automotive sector at the end of the year.
In 2022, the Company concluded 16.9 thousand new contracts for PLN 3,219 million (volume decrease by 7% y/y).
At the same time, the increase in administrative costs recorded by the Company amounted to 32%. The causes included
significant inflation affecting employee costs and external suppliers, as well as infrastructure investments aimed at
improving operational efficiency in the future. The credit profile of the portfolio remains stable, generating a burden on the
financial result that is fully in line with the expectations and the adopted business model. In 2022, the loan portfolio quality
did not deteriorate despite high interest rates and the Customers' reduced ability to settle liabilities.
In 2022, the Company recorded a net profit of PLN 47,703 thousand, thus significantly increasing the equity balance.
BNP Paribas Group Service Center S.A.
The scope of the business activity of BNP Paribas Group Service Center S.A. includes:
providing IT services in the field of application development as well as the development of banking and financial systems
of the BNP Paribas Group,
providing electronic equipment rental services to individual Customers,
comprehensive management of loyalty programmes for parties connected with the Bank and for the Bank's Customers,
providing marketing services for employees of the Bank's partners, as well as the Bank's Customers and employees,
development of scoring models as well as their verification and monitoring for entities of the BNP Paribas Group,
auxiliary services to insurance brokerage, consisting of administration and performance of group insurance contracts
concluded by the Bank,
providing agency services for insurance services.
Table 8. Basic financial data of BNP Paribas Group Service Center S.A.
thousand PLN
31.12.2022
31.12.2021
31.12.2020
Balance sheet total
59,990
48,338
42,246
Long-term investments
39,302
40,328
34,364
Equity, including:
45,279
39,443
34,411
net financial result
5,835
5,032
8,515
* unaudited data
Bankowy Fundusz Nieruchomościowy Actus Spółka z o.o. in liquidation
Bankowy Fundusz Nieruchomościowy Actus Sp. z o.o. (hereinafter: the Company) was established in 1999 to carry out the
following tasks:
purchase and sale of real estate as well as limited property rights,
construction projects on own and third-party real estate,
lease and rental of real estate as well as lease of space.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 56
On 28 January 2022, at an Extraordinary General Meeting of the Company's Shareholders, a resolution was adopted to
dissolve the Company by liquidation. On 1 February 2022, the Company changed its name to Bankowy Fundusz
Nieruchomościowy Actus Sp. z o.o. in liquidation.
Currently, the Company does not conduct business activity.
Table 9. Basic financial data of BFN Actus Spółka z o.o. in liquidation
thousand PLN
31.12.2022
31.12.2021
31.12.2020
Balance sheet total
8,962
24,726
42,587
Long-term investments
0
0
0
Equity, including:
8,956
24,703
42,426
net financial result
(447)
(1,749)
(5,812)
* unaudited data
Campus Leszno Spółka z o.o.
Campus Leszno Sp. z o.o. (hereinafter: the Company) was established on 28 June 2018 by a company agreement in the form
of a notarial deed and entered into the Register of Entrepreneurs of the National Court Register.
The Company was separated from the Bank’s structures, where it formerly functioned as the Training and Conference
Center (CSK Leszno). The Company’s activity still focuses on providing training and recreational services as well as
providing a training, hotel and catering base. The Company’s operations include entertainment and recreational activities,
activities related to the organisation of fairs, exhibitions and congresses, as well as other business services. The company
also cooperates locally with the Leszno borough.
The Company continuously adapts the facility to external conditions, focusing primarily on the offer for individual
Customers, providing accommodation services, running an open-air restaurant, recreational activities, family events and –
on a much smaller scale –wedding receptions and small holiday groups. The offer is also available on the booking.pl portal.
From the end of February to May 2022, many families from Ukraine (over 160 people; mainly Ukrsibbank employees) found
shelter in the facility.
BGZ Poland ABS1 Designated Activity Company
BGZ Poland ABS1 Designated Activity Company (hereinafter: SPV, the Company) is based in Ireland, 3rd Floor Kilmore
House, Park Lane, Spencer Dock, Dublin. It is a special-purpose vehicle with which the Bank carried out a securitisation
transaction for a part of the loan portfolio in December 2017. The Group has no equity involvement in the Company, nor is
it affiliated with it organisationally. The scope of the Company's activities is limited in accordance with art. 92a sec. 4 of the
Banking Law. The sole activity of SPV is the acquisition of receivables and the issue of securities.
Pursuant to agreements concluded on 11 December 2017 (as amended), the Bank transferred receivables from the portfolio
of loans, cash advances and car loans granted in the Polish currency to SPV. Subsequently, SPV issued securities and took a
loan secured with the above-mentioned receivables. From January 2020 the transaction is subject to depreciation.
SPV is subject to consolidation for the purposes of preparing the consolidated financial statement of the BNP Paribas Bank
Polska S.A. Capital Group.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 57
Pillar POSITIVE
Pillar description
The Bank wishes to be a leader in sustainable finance and is, therefore, developing dedicated products and services for all
business lines. Their dynamic sale will enable an increase in the share of sustainable financing from 4.5% at the end of
2021 to 10.0% in 2025. The Bank will implement the highest standards of ESG risk management and consistently improve
the loan portfolio's ESG risk profile. In addition, the Bank will continuously assess and reduce its portfolio's carbon
footprint by supporting the Customers' transformation. The Bank also aims to reduce its consumption of resources and
implement responsible purchasing practices. By 2025, the Bank plans to reduce CO
2
emissions from operations by 55% (vs
2019) and paper consumption by 80% (vs 2019).
Responsibility, availability, transparency and ethics will prevail in Customer relations. The overarching goal is for
Customers to consciously buy what they need without the surprises of hidden provisions. Our branches will continue to be
upgraded to meet the needs of the elderly and disabled. We believe that 50% of our branches will be eligible for the
“Barrier-free facility" certificate. The Bank does not plan to introduce solutions that would force Customers to stop visiting
branches. However, we will actively support our Customers' digital transformation.
Our commitment to local communities will continue through the development of employee volunteering and further
support for the activities of the BNP Paribas Foundation. The Bank will initiate public debate, conduct educational
campaigns and start partnerships within and outside the sector to build a brand associated with care for the environment
and important social issues.
Strategic commitments and their implementation
Indicator
2025 strategic goal
2022 execution
Share of sustainable finance [vs 2021: 4.5%]
10%
7.1%
Total value of green and sustainable bonds of the
Bank's Customers [vs 2021: 0]
PLN 1,400 million
0
Share of sustainable assets in management
[vs 2021: 5%]
30%
19%
Social involvement of employees
(annual average per employee)
4 hours
3 hours 51 minutes
Clients’ Centers with the “Barrier-free facility"
certificate [vs 2021: 18%]
50%
25%
Reduction of CO
2
emissions caused by operations
[vs 2019]
55%
43%
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 58
Sustainable financing
[2-24] [203-1] [3-3] [Offering products and services that respond to social and/or environmental challenges]
The Bank aims to offer responsible and sustainable products with a positive impact on the environment. We make sure
that our products are available to those at risk of exclusion. Our offer of products and services is also intended to support
the development of entrepreneurship and social innovations. We want to contribute to the energy transformation and
popularise solutions that protect the natural environment. In 2022, we focused on developing new products and
conducting extensive training for Clients Advisors.
The value of sustainable financing as at 31.12.2022 was PLN 6.5 billion, representing 7.1% of total financing.
Table 10. Value of sustainable financing by category (as at 31.12.2022)
Category
Value (PLN million)
Value of sustainable financing granted in 2022, including:
6,500
with a positive environmental impact
5,816
with a positive social impact
341
Sustainability Linked Loan
343
Financing with a positive environmental impact
Renewable energy
1,440
ecological construction and thermal modernisation of buildings
3,657
improving the energy efficiency of production processes
154
green transport
394
circular economy
24
natural resources
148
Financing with a positive social impact
healthcare
306
education
30
basic infrastructure (e.g. water supply, sewage system)
4
Sustainable financing provided by the Bank in 2019-2022
Category
Value (PLN billion)
Value of financing supporting the UN Sustainable
Development Goals (environmental and social goals)
8.8
In 2022. The Bank provided financing for sustainable: social and environmental objectives worth PLN 2,723 million.
The development of sustainable products is carried out under the "Positive" pillar, as part of the 2022-2025 GObeyond
strategy. The expansion of the sustainable product range and ambitious sales aims are not only a part of the strategy at
Bank level but are also among the goals for the entire senior management and – in the case of business lines – are
assigned to individual sales teams.
To provide top service quality in sustainable finance, in 2022 we organised a series of training and consulting sessions for
Customer Advisors serving Corporate Customers and SMEs. At these events, green and sustainable products, their
applications and examples of transactions were presented. In order to show these products in the context of ESG
challenges, the training aimed to expand knowledge in areas such as climate change, environmental protection, and social
and regulatory challenges. Specific examples of challenges for Polish enterprises were also presented. The newly gained
knowledge was put to use during the "Sustainable Products for SME/Corporate Customers" test conducted on an internal
training platform. The training programme was attended by 144 Corporate Banking Customer Advisors and 228 SME
Advisors.
To provide favourable financial terms for sustainable products, in 2020 the Bank introduced a formal catalogue of products
and types of investments with a positive impact. The listed products are eligible for preferential internal transfer prices,
which significantly strengthens the competitiveness of our offer.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 59
Catalogue of sustainable products and services
Segment
Products with a positive
environmental impact – intended for
green investments and projects
Products with a positive
social impact
Products linked to an entity's
ESG rating/performance
Corporate Customers
Green Loan
Green Bond
EBI credit line Leasing
Tech Loan
Investment loan with Biznesmax
guarantee
ECO-COMPANY with Profit
programme
Green Energy investment loan
Social Loan
Social Bond
Sustainability-Linked Loan
ESG Rating-Linked Loan
Sustainability-Linked Bond
Sustainability-Linked
Factoring
Sustainability-Linked
Hedging
SME Customers
Investment loan with Biznesmax
guarantee
UNIA+ investment loan
Tech Loan
ECO-COMPANY with Profit
programme
EBI credit line Leasing
Green Energy investment loan
Food & Agro Customers
Agro Progress
Investment loan
UNIA+ investment loan
Green Energy investment loan
Insurance of renewable energy
sources (as part of the Generali
Gospodarstwo Rolne product)
Micro farmers
Agro Progress
UNIA+ investment loan
Agro Rzeczówka Light loan
Agro Lider
Segment
Products with a positive
environmental impact – intended for
green investments and projects
Products with a positive
social impact
Products linked to an entity's
ESG rating/performance
Insurance of renewable energy
sources (as part of the Generali
Gospodarstwo Rolne product)
"Green Offer" leasing and
leasing loan for photovoltaics
and heat pumps
Leasing and Auto Plan with Arval
for electric cars + the possibility
of using the "My electric"
programme in both cases
Housing communities and
associations
ECO-COMMUNITY with profit
programme
Investment loan with a BGK
bonus
Account Open to Non-
Profit Business
Offer for Social
Economy Enterprises
Micro enterprises
UNIA+ investment loan
"Green Offer" leasing and
leasing loan for photovoltaics
and heat pumps
Leasing and Auto Plan with Arval
for electric cars + the possibility
of using the "My electric"
programme in both cases
Individual Customers
Instalment loan for green energy
sources
Loan for green changes
Green Mortgage
Loan with a subsidy from the
"Clean Air” programme
Long-term rental of equipment
financed by an instalment loan
Independence
Account and Mission
Independence
Offer for citizens of
Ukraine
Sustainable investment
products (based on ESG
criteria)
Introduction
About us
Environment
Strategy and
prospects
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execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 60
Sustainable development financing
Sustainability-Linked Loan (SLL)
The Sustainability-Linked Loan (SLL) is general purposes financing wherein the
loan margin is dependent on the implementation of an enterprise's ESG
objectives. Sustainability-Linked financing is provided in accordance with the
LMA Sustainability-Linked Loan Principles. These guidelines specify, among
others, that the developed indicators should relate to significant areas of the
company's impact on the environment. Simultaneously, these indicators should
be verifiable and comparable. They may show, for example, the reduction of
greenhouse gas emissions or other pollutants, the certification of raw
materials, the reduction of accidents in the workplace or the fight against social
inequalities.
In 2022, the Bank participated in three Sustainability-Linked Loan (SLL)
transactions:
In March 2022, the Bank, Wirtualna Polska Holding S.A. and consortium
members added relevant key performance indicators regarding the
environment, society and corporate governance to an existing loan
agreement. The existing financing in the amount of PLN 978 million was
transformed into SLL with a loan margin dependent on the company's
progress in increasing the share of RES, the scale of educational activities
focused on ecology and climate, and the percentage of women in the
managerial staff.
In April 2022, the Bank was a sustainability coordinator in an SLL worth EUR
21.5 million for VelvetCare, the market leader in the production of tissues,
paper towels and toilet paper. The goals that the loan margin is partly
dependent on relate to reducing water consumption, reducing packaging
weight, the certification of raw materials (FSC and PEFC) and occupational
safety.
In December 2022, the Bank also assumed the role of sustainability
coordinator in an SLL for FFiL Śnieżka SA and Śnieżka TOC Sp. z o. o., for a
total amount of PLN 120 million. Śnieżka is a leader in the production of
paints and varnishes in Poland and the region. The ESG objectives concern
the measurement and reduction of greenhouse gas emissions, an increase in
the share of RES and increased sales of products with ecological and
allergological certification. The company is also expected to obtain an ESG
rating and systematically improve it.
Furthermore, in 2022, the Bank participated in ESG-linked syndicated
financing for Baltic Hub Sp. z o. o. and Baltic Hub Container Terminal Sp. z
o.o. (previously: DCT Gdańsk Sp. z o.o.) amounting to EUR 863.5 million (the
Bank’s share: EUR 85 million). The correlated objectives concerned the
reduction of C0
2
emissions and the improvement of occupational safety.
ESG Rating-Linked Loan
In 2022, the Bank introduced the ESG Rating-Linked Loan to its offer of
sustainable corporate products. It is a special-purpose or investment loan of up
to EUR 20 million for SME and Corporate Clients. The margin is dependent on
the improvement of the ESG rating. If the borrower meets the agreed ESG
rating improvement criteria in a given year, the margin reduction mechanism is
applied.
The new financing formula is facilitated by cooperation with EcoVadis
established in September 2022. EcoVadis is a global agency performing ESG
ratings. It already provides services to several hundred companies in Poland
and nearly 100,000 around the world. The partnership was established both at
the Group and local levels and is the first initiative of its kind in the Polish
financial sector. The Bank promotes ESG Rating-Linked Loans based on
EcoVadis ratings but also accepts ESG ratings of other recognised agencies on
the market. Apart from contributing to sustainable financing, an ESG rating can
help a company systematise and improve operations quality in the
environmental and social areas, provide valuable comparisons with other
industry players and build a company's presence in global supply chains.
Green Loan/Social Loan
Green Loan and Social Loan provide funds for investments with a positive
environmental (green) or social impact, as well as investments that
significantly reduce the negative impact in these areas.
Green Loan – may combine several "green" goals, e.g. an energy efficiency
project, creating renewable energy installations and the construction of a
building with an environmental certificate. The investments must be
described within the Green Loan Framework based on LMA Green Loan
Principles and approved by an external entity ("Second Party Opinion").
Social Loan – can combine several social goals, e.g. the construction of
municipal buildings and extending the water supply network to places
without access to running water. The investments must be described within
the Social Loan Framework based on LMA Social Loan Principles and
approved by an external entity ("Second Party Opinion").
Green Bond/Social Bond
Funds stemming from the bonds are intended for investments with a positive
environmental (green) or social impact, as well as investments that
significantly reduce the negative impact in these areas.
Green Bond – may combine several "green" goals, e.g. investments in RES and
low-emission technologies. The financed investments must be described
within the Green Bond Framework based on the ICMA Green Bond Principles.
Social Bond – can combine several socially important goals, e.g. the
construction of municipal housing and water supply networks for areas with
limited access to water. The investments must be described within the Social
Bond Framework based on the ICMA Social Bond Principles.
Green Financing Framework in the development industry
In 2022, the Bank supported DL Invest Group (a private capital group, developer
and manager of office buildings, logistics centres and retail parks) in creating
the Green Financing Framework. In particular, the Bank supported the
Customer in the selection of Green Project criteria and in ensuring compliance
with market standards of selection and evaluation, as well as funds
management and reporting. Further support included coordinating cooperation
with the Second Party Opinion provider: Sustainalytics Agency.
Investments in renewable energy sources
Since 2008, we have been financing projects related to renewable energy
sources (RES), including wind farms, agricultural biogas plants, small
hydropower plants and photovoltaic installations. In 2018, the Bank
significantly expanded its expert base and at the beginning of 2020, we hired
engineers and experts in the field of energy efficiency to support our Customers'
energy transformation.
In 2022, the Bank was a co-organizer, lender and hedger in financing a portfolio
of 140 photovoltaic farm projects with a total capacity of 134MWp within 32
special purpose vehicles. The total loan value was PLN 428 million, of which
PLN 85.6 million was provided by the Bank.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 61
The bank also supported a 35 MWp photovoltaic farm project implemented by
Kajima Europe and Griffin Capital Partners as part of the PAD RES investment
platform. The project won a RES auction in 2021. Its commercialisation strategy
entails the sale of energy based on a 6-year PPA agreement with Statkraft. The
Bank provided comprehensive assistance as the primary loan arranger, original
lender and hedging transaction party. It also assumed the role of a loan agent,
collateral agent, the bank maintaining the account and the issuing bank.
Sustainable real estate investments
LIXA C – in 2022, the Bank granted a loan of EUR 48.3 million for the
construction of the LIXA C office building to a company from the Yareal group.
LIXA C is part of an office complex under construction. It consists of four
buildings, which jointly provide over 70,000 m2 of class A office space, located
in Warsaw's Wola district. The building has a BREEAM International New
Construction certificate (Excellent rating), which confirms the positive impact
of solutions implemented in Yareal investments. These solutions include
energy-saving systems that reduce operating costs, solar power plants, the
use of recycled materials and low-emission concrete. All decrease both
maintenance costs and the investments' negative impact on the environment.
Part of the Lixa complex is covered by greenery designed by professional
ecologists. Integration-friendly solutions, such as community gardens, are
also present. The building is easily accessible by public transport due to the
proximity of the city's main thoroughfares, tram stops, the metro and a
railway station.
Logic Park Radomsko – The Bank financed the acquisition of LOOGIC Park
Radomsko by Elite Capital Partners. The transaction amounted to EUR 14.5
million. LOOGIC Park Radomsko is a 54,000 m2 modern warehouse facility
certified by BREEAM (Excellent rating). The project employs technical
solutions that enhance energy efficiency and increase the comfort of use.
Panattoni Park Central Silesia III – in 2022, the Bank granted a loan of EUR 34
million to finance the Panattoni Park Central Silesia III project developed by
Panattoni. The project entailed the construction of a logistics centre with a
total area of approximately 72,000 m
2
. The complex consists of 2 buildings
containing several sustainable solutions such as recuperation, photovoltaics
and charging stations for electric cars. The employed technologies will reduce
CO
2
emissions by approx. 94,500 kg CO
2
/year. In addition, a modern canteen,
an outdoor garden and a floodlit shelter for bicycles and motorbikes have
been built for staff. The facility has received the BREEAM certificate ("Very
Good" rating).
Panattoni Park Bydgoszcz IV, owned by Accolade, an international investor in
storage infrastructure – in 2022, the Bank granted a loan of EUR 54 million to
finance the Panattoni Park Bydgoszcz IV project. The complex will ultimately
consist of three buildings with a total area of over 110,000 m
2
. The first,
62,000 m
2
facility is ready. Two more will be finished in 2023. The warehouse
park is located in close proximity to the S5 and S10 roads, which connect the
Tri-City with Poznań and the Szczecin-Świnoujście seaport complex with
Warsaw. The building constructed in the first stage is equipped with
numerous ecological solutions, such as LED lighting, a parking lot with
charging stations for electric cars and external electric sun protection
controlled by weather automation. Ultimately, there are plans to build a
photovoltaic farm to gain greater energy independence. The facility will be
BREEAM certified with an Excellent rating.
Supporting our Customers’ energy transformation
Our key environmental commitment is to support our Customers' energy
transition. The Bank is constantly developing its offer of products and services
that help Customers transition to a low-emission economy and develop
sustainable and ecological investments.
ELENA (European Local Energy Assistance)
2022 saw the continuation of cooperation with the European Investment Bank
(EIB) in the field of ELENA Programmes supporting the improvement of energy
efficiency for:
Housing communities in multi-family buildings – ELENA EEFFRB,
SMEs (small and medium-sized enterprises) and MidCAP (companies
employing more than 250 and less than 3,000 people) – ELENA EEFFCB.
Programme beneficiaries receive co-financing amounting to 90% of technical
documentation costs, which may include one or several of the following
documents:
initial, simplified technical assessment report (we are the only bank on the
Polish market to offer the document),
basic or extended energy audit.
As well as a number of technical evaluations:
basic energy evaluation,
energy evaluation of RES integrated with the building,
heat pump evaluation,
refrigeration evaluation,
micro-cogeneration evaluation,
evaluation of roof load capacity for PV installations.
Nearly 800 Housing Communities benefited from the programme.
The ELENA programme for companies is also gaining popularity and reaching a
wider circle of Customers. In 2022, the Bank organised a series of "Business
Breakfasts" – meetings for Customers intended to present threats, but also
show solutions for dealing with drastically increasing energy prices. At the
meetings, we also explained how the Bank can help entrepreneurs with the
technical aspects of energy transformation (using the ELENA programme) and
with financing.
In the near future, the Bank plans to launch the "Ecological Loan" in
cooperation with BGK. Enterprises will be able to obtain financing and co-
financing for investments increasing energy efficiency. Companies interested in
using the instrument will have access to technical support in preparing their
projects for implementation. The support will be provided by the ELENA
initiative.
PF4EE (Private Finance for Energy Efficiency)
2022 saw the continuation and extension of cooperation with the European
Investment Bank (EIB) under the PF4EE programme (Private Finance for Energy
Efficiency).
Under the agreement, the EIB reinsures a portfolio of loans granted by the Bank
to improve energy efficiency. The beneficiaries of the PF4EE programme are
housing communities and individual Customers who finance thermo-
modernisation projects and RES micro-installations. Owing to EIB support, they
benefit from higher maximum loan amounts, extended financing periods and
lower interest rates.
In just two years, the Bank granted loans worth PLN 750 million, thus fulfilling
its obligation and exhausting the agreement-specified limit for the coverage of
loans with an EIB guarantee. Therefore, in 2022, another agreement for the
PF4EE guarantee instrument was concluded, enabling a guarantee for further
loans in the amount of PLN 550 million.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 62
Since the beginning of cooperation with the EIB within the PF4EE programme,
the Bank has granted over 30 thousand loans for individuals and housing
communities for nearly PLN 1 billion. In 2022, 5.5 thousand loans were granted
for PLN 213 million.
The aims of the PF4EE programme include:
increasing the financing of renewable energy sources and energy efficiency,
facilitating financing access for the market,
risk reduction on the part of financial institutions.
In 2023, we plan to focus on supporting the sale of loans with an EIB guarantee,
thus further promoting and supporting energy efficiency in Poland.
Cooperation with the EIB is the Bank's response to the challenges caused by the
current energy crisis and the ensuing urgent need to improve energy efficiency
and reduce greenhouse emissions.
Loan with a subsidy from the "Clean Air" priority programme
2022 saw the stabilisation and systematic sales increase of the "Clean Air"
loan, which was introduced in September 2021.
The "Clean Air" programme is the largest and most important project in Poland,
which effectively improves air quality and reduces greenhouse gas emissions.
Co-financing for the replacement of heat sources and thermal modernisation is
provided for owners and co-owners of single-family houses and residential
premises in single-family buildings with a separate land and mortgage register
entry.
"Clean Air" loans have a free guarantee of Bank Gospodarstwa Krajowego (BGK),
thus Customers can take advantage of higher loan limits, extended financing
periods and lower interest rates.
The Bank supported the idea of including the banking sector in the
implementation of the "Clean Air" programme. Launching the distribution of the
"Clean Air" programme in bank branches was possible, i.a., thanks to our efforts
in working groups at the Polish Bank Association and talks with the National
Fund for Environmental Protection and Water Management, Bank
Gospodarstwa Krajowego and the World Bank.
The loan with the "Clean Air" priority programme subsidy was created in
cooperation with the National Fund for Environmental Protection and Water
Management, 16 Voivodship Funds for Environmental Protection and Water
Management and Bank Gospodarstwa Krajowego. Cooperation at the interbank
level was carried out through the Polish Bank Association, and (at the IT level)
via the National Clearing House.
In 2022, the Bank granted 1,234 "Clean Air" loans worth PLN 44.4 million.
In 2022, changes to the "Clean Air" programme were announced, including
increased subsidies and increased support for thermal modernisation projects.
These changes will come into force at the beginning of 2023 and entail the
banks' increased commitment. The Bank is ready for the launch of the
programme's 2023 edition. We anticipate that the changes will raise the
programme's appeal and increase the sale of loans for thermo-modernisation.
Cooperation with financial institutions
On 7 December 2021, the Bank signed an agreement with the European Bank
for Reconstruction and Development (EBRD) in London. The EBRD provided the
Bank with financing in the amount of PLN 450 million to improve the energy
efficiency of residential buildings in Poland within the PolREFF Programme. In
addition, the Bank committed to providing PLN 225 million to further support
the implementation of this programme. Funds from the PolREFF Programme
will cover loans addressed to individuals for projects such as the modernisation
of heat sources, thermal modernisation of the building envelope, the
introduction of photovoltaic installations and several other improvements to
their homes' energy efficiency. This initiative aims to help combat the problem
of high energy intensity and carbon dioxide emissions in the Polish residential
construction sector.
Furthermore, the Bank obtained technical support under the agreement.
Cooperation with the EBRD within the PolREFF programme
In August 2022, the Bank extended its offer by introducing the PolREFF
initiative, i.e. the Polish Programme for Financing Energy Efficiency in
Residential Buildings.
As part of the PolReFF initiative, the Bank offers various tools supporting
thermo-modernisation investments. Customers can, for example, use a special
calculator that allows them to determine the energy savings (occurring
alongside environmental effects) resulting from a thermo-modernisation
project. We also provide a Virtual Technology Advisor – an interactive list of
energy-saving devices and materials in the form of an online search engine.
Customers can check which products will be the most profitable for them and
will meet their energy-saving requirements.
Multiple Beneficiary Intermediated Loan (MBIL)
On 12August 2022, the Bank concluded an agreement with the European
Investment Bank (EIB) for up to EUR 100 million intended to support energy
efficiency projects in Poland. The funds are used to finance the loans for
individual Customers and housing communities with a PF4EE guarantee:
supporting the installation of photovoltaics and heat pumps for individuals and
thermal modernisation for housing communities.
Owing to the financing agreement and the PF4EE guarantee, Customers can
obtain a reduction in the cost of financing (lower credit margins).
Climate Action Support Facility (CASF) Green Gateway Support
In a package of agreements, the Bank concluded an agreement with the EIB for
technical advice – offered to financial institutions to strengthen their internal
capacity for financing investments related to climate protection and energy
transformation. This technical support will be used by the Bank primarily for
the development and creation of new green products and services, the
improvement of internal processes related to financing the energy
transformation, and expanding the knowledge and competencies of employees.
It will also be utilised in the area of reporting.
Plans for 2023
InvestEU
The InvestEU programme was launched in 2022. It creates a guarantee
mechanism for financial institutions with a budget of EUR 32.5 billion (EUR 26.2
billion from the EU budget). The mechanism is designed to provide funding
guarantees for investment projects, as well as to enable debt financing and
allocate around EUR 372 billion of public and private funds for the support of
sustainable investments, innovation and job creation across Europe. It is also
meant to promote recovery and green growth economy, employment and well-
being. In the near future, the Bank intends to closely cooperate with the
relevant financial institutions in the implementation of the above-mentioned
guarantee mechanisms onto the market.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 63
ESCO
Along with several business and public partners, the Bank participates in the
creation of a thermal modernisation programme for public utility buildings
belonging to local government units. A particularly interesting solution is an
agreement concluded by boroughs with the Energy Service Company (ESCO),
which ensures the achievement of ecological goals and investment financing.
The project reduces energy consumption and costs. The savings can, therefore,
serve to repay the investment without increasing the borough's budget deficit.
The Bank intends to use its experience in designing financial solutions to
actively support the development of a financing model combining subsidies
from public funds and EU funds with commercial financing.
Educational and support activities for Corporate Clients and SMEs
Educational initiatives addressed to corporate Clients and SMEs were mainly
focused on information and training meetings devoted to the following topics:
improving energy efficiency in companies, increasing awareness of
sustainability and the possibilities of support offered by the Bank. The following
meetings were organised in 2022:
"Improvement of energy efficiency in your company" – training course for
producers from the SME sector, including the Agro segment. The course was
organised by the National Energy Conservation Agency and a stationary, one-
day formula was adopted. Course participants received certificates and could
obtain a free energy audit. The main topics of the meeting included: ways to
increase energy efficiency in small and medium-sized enterprises in Poland,
the monetisation of this process and logistics improvements.
"Sustainability MeetUP!" – a meeting organised for several dozen of the
Bank's corporate Clients, aimed at exchanging experiences and knowledge, as
well as discussing trends and current regulations in the field of sustainable
development. The keynotes were devoted to long-term electricity purchase
contracts (cPPA), new EU regulations and ESG requirements, EU Taxonomy
and EcoVadis ESG Rating. A discussion panel with the participation of
Customers was also held to discuss the challenges of sustainable
transformation and responsibility in the supply chain.
"Energy efficiency of companies and exports support" – during a dinner with
invited Customers, we talked about the most important trends and issues
related to the transformation and energy efficiency as well as exports support
in companies.
"Energy transformation in companies" is the first series of 9 business-
breakfast meetings held around the country, to which we invited our
Customers. Our Bank's experts discussed several important issues related to
the energy transformation. We talked about the important role of Polish
companies in this process, ways of supporting them, EU funds and ways to
achieve energy efficiency. We presented a case study on the profitability of
transformation, and with the aid of representatives from Bureau Veritas, we
answered the Customers' questions.
In cooperation with our Customer, Agrosimex, the Bank organised a business
dinner under the slogan "How to keep up with changes in the company in an
era of rising energy prices?". During the event, we talked about ways of
starting and carrying out a company's energy transformation and discussed
where to look for support and sources of financing. We also presented
examples of such investments in companies.
As regards the field of Corporate and SME Banking, in 2022 the Bank organised
online meetings and webinars devoted e.g. to the current market situation and
the presentation of selected elements of the product offer.
Educational and support activities for Customers from the Food &
Agro sector
The BNP Paribas Group possesses extensive international experience in
servicing the Food & Agro sector, e.g. as a European leader in financing the
leasing of agricultural machinery. Locally, in Poland, it is also a leader in
financing this sector. We strive to popularise responsible approaches to food
production and help implement appropriate tools.
Educational and information activities:
Agro Academy 2022 "The price of tomorrow". The leitmotif of the meeting was
a reflection on the future of the Agro market in the context of the current
geopolitical situation and other existing challenges. The invited experts
discussed the labour market, climate, the implementation of innovations,
insurance and the Polish Deal. The meetings were chaired by Maria Sikorska
– a TV journalist and author of agricultural programmes.
Webinar "Organic farming – an opportunity for competitiveness and consumer
health" in cooperation with Polskie Wydawnictwo Rolnicze.
Webinar "Sustainable food production – an opportunity for the climate.
Financing, certification, best practices.” - in association with the Polish
Agricultural Publishers and the Polish Agriculture Association.
17th edition of the Food & Agro Conference
The Bank is the initiator and organiser of the Food & Agro Conference
(previously: "Agro Conference"). The meeting is an important platform for the
exchange of views and an opportunity for substantive discussion between
producers, processors, suppliers and distributors operating in the value chain of
food production.
This year's 17th edition of the Food & Agro Conference gathered several
hundred representatives of the largest and most promising entities in the food
production value chain and its surroundings, including many Bank Customers.
The meeting took place in exceptional market circumstances: the food price
growth dynamics unprecedented in the 21st century as well as the energy and
economic crises prompted participants to question existing axioms and
consider the possible shape of the future socio-economic order. The motto of
the conference, "Equilibrium Shock", referred to the shock caused by the war in
Ukraine and its consequences for the world.
Agronomist.pl platform
The Agronomist.pl platform is an innovative way to build relationships and
share knowledge. It is a solution dedicated to agricultural producers and
entrepreneurs from the Food & Agro industry who want to develop in
accordance with market trends, especially with the standards of sustainable
production. It provides knowledge and tools supporting both the transformation
towards sustainable agriculture and the digital transformation. The portal's
content encompasses the entire F&A value chain, with a special focus on local
communities.
In 2022, new, unique tools and functionalities were introduced to the platform.
They respond to the needs of entities operating in the agri-food sector:
RegAgri Explorer – the first tool in Europe showing the potential of
agricultural soil to store carbon dioxide from the atmosphere, given the
implementation of various regenerative agriculture practices in the
perspective of 2050. The Bank is the first financial institution to implement
the Sustainable Development Goals by providing a free tool for farmers and
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 64
agricultural producers to support the transformation towards carbon farming.
The tool received the Innovative Agricultural Product 2022 award.
Water footprint calculator – the first Polish language calculator that allows
you to assess the water footprint of agricultural production along with the
water balance and irrigation efficiency. The calculator is a new feature of the
Agroemisja tool, which calculates the emissivity of production.
Your weather – the weather module received new functionalities useful for
agricultural producers: soil temperature and humidity as well as evaporation
with an accuracy of 1.5 km.
Research and campaign on regenerative agriculture – conducted among
Polish agricultural producers to spread knowledge about regenerative
practices and their benefits, as well as knowledge about carbon credits
generated from agricultural production. An accompanying educational
campaign shows the benefits of transitioning to this production model.
Educational videos – inspirational video recordings (available on the
Agronomist.pl platform) wherein the Bank's Customers present their
achievements in the fields of the digital and sustainable transformations.
In 2022, the platform was visited by over 135,000 users.
Food & Agro sector partnerships
The Bank participated in the RES Council of the Lewiatan Confederation and
Working Groups established by the Ministry of Climate and Environment
(following industry agreements) which contributed to the creation of
legislation related to sustainability and energy transformation.
Continuing last year's fruitful partnerships, we have cooperated with the
Polish Association of Sustainable Agriculture "ASAP" and associated
companies.
The Bank participated in creating an e-learning course devoted to sustainable
farm management on the ASAP Academy platform.
4th edition of the AgroAbsolwent competition for the best dissertation on
modern agriculture and agri-food processing.
In this year's edition, another record was set in the number of participants: 58
dissertations were submitted. The jury was composed of the Bank's
representatives and Competition Partners: the Association of Sustainable
Agriculture "ASAP" and its Members: Żywiec Group, ProCam Polska Sp. z o.o.,
Timac Agro Polska Sp. z o. o. and Farm Frites Poland S.A. Four winners were
selected (the third place was awarded ex aequo to two dissertations) to receive
financial prizes. In addition, special prizes were awarded by Competition
Partners, including internships, as well as factory and farm visits. The main-
prize winners will also receive additional gifts and articles about their
dissertations will be published by Media Partners: AgroNews – NetWord3
publishing house, Agencja Promocji Rolnictwa i Agrobiznesu "APRA" sp. z o.o.,
Polskie Wydawnictwo Rolnicze.
For further details, visit: www.bnpparibas.pl/agroabsolwent
Products with a positive social impact for Retail and Business
Banking Customers
Little Mr/Ms Independent Account
In 2020, we launched an offer addressed to parents and children: the Little
Mr/Ms Independence Account. The offer is accompanied by an educational
campaign entitled “Mission: Independence", which supports parents in building
their children’s financial awareness.
At the end of 2022 the Bank operated more than 52 thousand Little Mr/Ms
Independent Account – dedicated to Customers below 18.
Offer for citizens of Ukraine
We provide Ukrainian citizens living in Poland with amenities that facilitate the
use of banking products.
At our Bank, citizens of Ukraine can easily open the "Account Open to You". It
was created for Customers who value transparent and straightforward
solutions in banking. The Bank has also prepared a website and advertising
materials in Ukrainian. Customers can choose Ukrainian on our hotline.
In response to the invasion of Ukraine by the Russian Federation, in 2022, we
have created a number of additional amenities for Ukrainian citizens:
we have implemented a simplified process of establishing relationships that
does not require e.g. demonstrating relations with Poland,
we have created a dedicated account, the "Account for Now", for people who
do not possess sufficient documentation to open a standard account,
we have provided all documents in Ukrainian,
we have launched dedicated onboarding in Ukrainian,
we have provided support through the publication (in Ukrainian ) and
distribution of information on current administrative regulations (e.g. PESEL
for UA) and social rights (i.e. 500+) for migrants who arrived in Poland after
24 February 2022,
We have launched several promotions, e.g. for transfers to Ukraine.
In 2022, we opened 118,838 personal accounts for citizens of Ukraine, and
there are currently a total of 305,513 such accounts at the Bank.
Account Open to Non-Profit Business
The Bank offers an account for non-profit activities, i.e. for social or
professional organisations whose basic services are free of charge. The offer is
addressed to housing associations, cooperatives, foundations, and associations.
Based on one agreement with the Bank, an organisation may receive:
a current settlement account in PLN,
an investment account,
term deposit accounts,
access to mobile and internet banking systems,
the comprehensive services of a bank advisor and
preferential terms of additional services.
The number of Non-Profit Accounts (Non-Profit Package) in 2022 was 30,980
(2021 - 25,411).
Offer for social economy enterprises
The Bank provides services to social economy enterprises. Thus, we support
entities that generate profit, but at the same time fulfil social and
environmental goals and reinvest profits in the implementation of their social
mission.
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About us
Environment
Strategy and
prospects
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execution
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opportunities
Corporate
governance
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 65
Investing based on ESG criteria
The Brokerage House provides Clients with funds managed by BNP Paribas TFI
S.A., including (since June 2022) six sustainable funds according to the SFDR
classification (Article 8 or Article 9). Four of these funds promote environmental
or social goals (Article 8 of the SFDR) and two aim at sustainable investments
(Article 9 of the SFRD). They include equity, bond and convertible bond funds
with foreign allocations, investing most of their assets in sustainable funds
managed by BNP Paribas Asset Management.
The Brokerage House also offers the sale of participation units in funds run by
various TFIs. 185 of these funds are marked as sustainable (Article 8 and Article
9 of the SFDR), including two locally allocated sustainable funds marked in
accordance with Article 8 of the SFDR.
Customers using investment advisory services in the field of exchange-traded
instruments are presented with portfolios containing at least 20% of
sustainable instruments. This applies both to local and foreign currency
portfolios with various risk profiles.
Investment products supporting social and environmental goals
Furthermore, we offer structured products, a part of which is allocated to social
or environmental goals. Companies whose shares are the underlying asset for
these products are thoroughly analysed in terms of environmental, social and
corporate governance factors.
In 2022, the offer included products whose sales supported the following goals:
aid for residents and refugees from Ukraine through support for 3
organisations: Doctors Without Borders, Red Cross and Care; the total value of
the support exceeded PLN 318 million,
construction of a polar research facility in cooperation with the TaraOcean
Foundation – supported in 2022 with over PLN 186 million.
planting trees all over Poland (e.g. in areas devastated by a tornado in
Pomerania) in cooperation with ReforestAction; we contributed to the planting
of over 128,000 trees.
ESG sub-funds
With the launch of the 6 new ESG sub-funds, BNP Paribas TFI S.A., as a
financial market participant, made a series of disclosures to end-investors in
2022, in line with EU regulations, on the introduction of sustainability risks into
the business, on the consideration of adverse sustainability impacts, on
sustainable investment objectives or on the promotion of the environmental
and social aspect in the investment decision-making process. As of 30
December 2022, the aforementioned disclosures have been expanded with new
guidance in line with regulatory technical standards so that end investors can
make informed decisions based on reliable data.
Available ESG sub-funds offered by BNP Paribas TFI S.A.:
BNP Paribas Europejskich Obligacji Zamiennych,
BNP Paribas Obligacji Zrównoważony Rozwój,
BNP Paribas Akcji Wzrostowych USA,
BNP Paribas Akcji Azjatyckie Tygrysy,
BNP Paribas Akcji Zielony Ład,
BNP Paribas Akcji AQUA.
BNP Paribas TFI S.A. plans to expand its sub-fund offering in 2023 with further
ESG strategies. Already in the first quarter, an ESG sub-fund will be made
available that invests its assets in other debt investment funds that take into
account sustainability factors in line with EU regulations.
Regulatory adjustments and training for advisers
In 2022, the Bank adapted to new sustainable investment regulations.
Subsequent regulatory changes required technical and organisational
adjustments to examine the preferences of the Brokerage House Customers as
regards the inclusion of sustainability factors in specific investment products
and services. Over a dozen training sessions for Customer Advisors were
conducted, discussing the basics of sustainable investments, BNP Paribas
policies and regulations in this area, as well as the introduced adjustments and
new product offer. Customers were informed about the need to define their
preferences as regards sustainable investments through various channels: by
e-mail, in mobile apps, on websites, and at Customer centres.
Personal Finance – sustainable offer for individual Customers
Offer
Implementation in 2022
Instalment loan for ecological
energy sources
The Bank continued its cooperation with leading
retail chains and local partners by offering an
instalment loan dedicated to the energy
transformation.
The Bank financed nearly 6.5 thousand projects,
primarily related to the purchase and installation
of photovoltaics and heat pumps.
The value of financed Customer investments
(including the assembly of installations) exceeded
PLN 200 million.
Loan for green changes
The cash loan for green changes was available at
the Bank's retail outlets and was very popular
among Customers.
The Bank granted nearly 18.5 thousand loans for
green changes on preferential terms.
The value of the loans exceeded PLN 500 million.
Green Mortgage
The Bank continued to grant mortgages for
energy-saving real estate. In 2022, it granted over
PLN 200 million worth of such loans. Since June,
green mortgages are the only type of mortgage
loan granted to new Customers. In the fourth
quarter, the Bank enabled holders of existing
loans to change the classification to "green". If the
Customer provides an energy efficiency certificate,
he/she will be able to obtain a margin reduction.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 66
Offer
Implementation in 2022
Long-term rental of equipment
financed by an instalment loan
Expanding long-term rental services, the Bank
and its subsidiary BNP Paribas GSC, provided the
offer in three retail chains: Media Markt, Max
Electro, Xkom. An educational campaign across
multiple channels (television, internet, POS)
promoting the use rather than ownership of
telephones (in the spirit of the circular economy)
was organised in cooperation with Media Markt.
Over 1,000 devices were rented.
Financing low-emission vehicles
In cooperation with new and used car dealerships,
the Bank financed nearly 250 low-emission
vehicles (electric and hybrid) with loans
exceeding PLN 25 million.
The Bank promoted the "My electric" programme
by offering leasing products, thus helping
Customers to obtain subsidies for low-emission
vehicles.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 67
Taxonomic disclosures
Recent developments in climate change and the international response to these challenges, i.e. the Paris Agreement, the
2030 Agenda or the European Green Deal, have given a higher priority to action on sustainable development. However,
implementing the provisions of the above documents is beyond the financial capacity of the public sector, so it is
necessary to involve private capital and channel it towards a sustainable economy. The EU Taxonomy is intended to be a
tool to support the right investment decisions and at the same time promote sustainable development.
The taxonomy is a key instrument for assessing the environmental sustainability of business activities. It provides a
standard definition of environmentally sustainable activities, in order to better monitor, report and make better decisions
about their commitments.
In line with the general trend towards greater disclosure of climate-related financial risks, BNP Paribas Bank Polska S.A.
supports efforts to increase transparency in disclosures towards a more sustainable financial institutions framework and
standards.
Based on the requirements of Article 8 of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18
June 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU)
2019/2088 ("Taxonomy"), the Bank is required to publish information on how and to what extent its activities are related
to business activities that qualify as environmentally sustainable under Articles 3 and 9 of this Regulation.
Article 10 of Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 2020/852 of
the European Parliament and of the Council by specifying the content and presentation of information to be disclosed by
undertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic
activities, and specifying the methodology to comply with that disclosure obligation ("Delegated Regulation 2021/2178")
creates a special provision introducing simplified disclosure rules during a transitional period. For financial companies, the
special reporting rules are set for the period from 1 January 2022 to 31 December 2023. The transitional period is intended
to prepare for future reporting of key performance indicators
Table 11. In accordance with Article 10(2) of Commission Delegated Regulation (EU) 2021/2178, the Bank discloses the
following quantitative indicators:
Disclosures according to the EU Taxonomy (31.12.2022)
%
% (including voluntary
estimates)
Percentage of total assets of exposures to business:
27.90
28.10
not eligible for the systematics (by turnover/investments)*
8.8 / 8.59
8.88 / 8.67
eligible for systematics (by turnover/investments)*
19.1 / 19.31
19.22 / 19.43
Percentage of total assets of exposures referred to in Article 7(1)
and (2):
21.79
21.79
Disclosures according to the EU Taxonomy (31.12.2022)
%
% (including voluntary
estimates)
exposures to central governments, central banks and
supranational issuers
19.64
19.64
derivatives
2.15
2.15
Percentage of total assets of exposures referred to in Article 7(3)
- exposures to corporates not required to publish non-financial
information
42.55
42.55
Percentage of trading books and interbank loans on demand in
total assets
2.13
2.13
* exposures were expressed on the basis of key performance indicators in two approaches, i.e. either by turnover or by
capital expenditure
With reference to the scope of information disclosed during the transition period, in addition to the quantitative indicators,
the Bank is required to publish the following qualitative information as referred to in Annex XI of Delegated Regulation
2021/2178.
Background information on quantitative indicators, including the range of assets and activities covered by key
performance indicators, information on data sources and limitations
As a first step, for the purpose of fulfilling the obligation under Article 8 of the Taxonomy, the Bank determined the
approach to the different categories of exposures.
With regard to the portfolio of exposures to retail Customers, the determination of eligibility for the Taxonomy was based
on product classification.
With regard to the portfolio of exposures to corporates, the Bank identified Clients that are subject to the obligation to
publish non-financial information under Article 19a or 29a of Directive 2013/34/EU. The proper identification of these
entities determined the way in which the scope of assets taken into account in the calculation of the quantitative
indicators was determined. In accordance with Article 7(3) of Delegated Regulation 2021/2178, exposures to companies
not subject to mandatory non-financial statements are excluded from the numerator of future calculated key performance
indicators. In view of the above, the Bank applied a similar approach in 2022 for the calculation of quantitative indicators,
i.e. based on exposures to companies subject to non-financial reporting. At the same time, it should be noted that a
uniform list of entities obliged to prepare non-financial statements (by an authorised public authority) was not developed,
which significantly complicated the fulfilment of the reporting obligations under the
Taxonomy. Therefore, the Bank was obliged to determine independently, based on expert knowledge and available market
data, the group of Customers that are subject to the obligation to prepare non-financial statements.
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 68
The actions taken by the Bank were implemented in accordance with due diligence
In the next step, the asset data were reconciled to the data presented in the FINREP consolidated report. The exposures
included all Client receivables, including those arising from leasing and factoring, as well as derivatives and securities.
Ratios were calculated on the basis of the gross carrying value, which were related to the Bank's total assets.
Subsequently, for the purpose of assessing the eligibility of economic activities as environmentally sustainable (in line
with the Taxonomy), the Bank analysed the types of activities identified in Commission Delegated Regulation (EU)
2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by
establishing technical eligibility criteria to determine the conditions under which an economic activity qualifies as making
a significant contribution to climate change mitigation or adaptation, as well as determining whether that economic
activity does not cause significant harm to any of the other environmental objectives.
In the absence of the entry into force of the technical eligibility criteria for the remaining four environmental objectives of
the Taxonomy, the Bank only assessed the eligibility of exposures against the climate change mitigation and adaptation
objectives.
In terms of the portfolio of retail exposures, products with characteristics that reflect any of the activities included in the
above Delegated Regulation were considered eligible for the Taxonomy. Loans secured by residential real estate, loans for
the renovation of buildings, loans for photovoltaic installations and loans for the purchase of means of transport other
than motor vehicles were classified in this group. The remaining retail loans were considered not eligible for the
Taxonomy.
For corporate exposures, the information disclosed by them within their non-financial reports (available as at 31
December 2022) was used. The eligibility of exposures was presented in two approaches, i.e. based on both key
performance indicators on turnover as well as on key performance indicators on capital expenditure.
In addition, for companies that did not make their non-financial reports available, the Bank's eligibility analysis with the
Taxonomy used information on business activities linked to PKD codes (according to the Statistical Classification of
Economic Activities), using information that it already has in its resources.
Explanations of the nature and objectives of the business activities aligned with the Systematics and the development
over time of the business activities aligned with the Systematics, starting from the second year after implementation,
distinguishing between business-related elements and methodological or data-related elements
A key dimension of the Bank's responsibility is to support the sustainable development of the economy over the long term
and to build lasting relationships with Customers and other Bank stakeholders. We offer products and services tailored to
the changing needs of our Customers, while responding to global challenges and local market conditions. In order to
improve monitoring, reporting and decision-making on sustainability commitments, the Bank uses the Taxonomy. It
provides us with a tool to support the systematisation of the Bank's environmentally sustainable business activities.
Description of compliance with Regulation (EU) 2020/852 in the financial company's business strategy, product design
processes and cooperation with Customers and counterparties
We conduct ongoing monitoring of CSR/ESG risks in the companies we finance. We precede every financing decision with
an ESG analysis. We check how a company we finance affects the environment, society and corporate governance. We pay
particular attention to the financing of sectors that are recognised as sensitive in terms of ESG factors. In each of the
sectors identified by the Bank as particularly sensitive in terms of sustainability, CSR Policies and Principles are
implemented, defining the requirements for Clients operating in them. In relation to the sectors that are most harmful in
terms of sustainability, the Bank makes strategic decisions to stop serving Clients belonging to them.
In 2021 in response to the requirements of the EBA/GL/2020/06 Guideline of 29 May 2020 on originating and credit
monitoring, the Bank has developed ESG assessment questionnaires that have been implemented in the lending process.
The purpose of the assessment is to identify any risks related to ESG factors affecting the financial position of the Clients,
as well as the impact of Customers' business activities on ESG factors (dual materiality principle). Principles for ESG risk
management at BNP Paribas Bank Polska S.A. have also been developed. In addition, the BNP Paribas Group applies the
Equator Principles (EP) to identify, assess and manage the risks associated with the financing of a given project and its
environmental and social impact. The principles provide minimum standards for conducting due diligence on projects.
Additional or complementary information on the strategy of the financial company and the importance of systematic
business financing in the overall activity of companies.
The main objective of GObeyond's new strategy for 2022-25, adopted by the Bank's Management Board and the
Supervisory Board in March 2022, is to continue the dynamic growth of the Bank, which will be an institution that operates
efficiently, with engaged employees and satisfied Clients, while being a leader in the area of sustainability. The Bank aims
to be a leader in sustainable finance by developing a range of dedicated products and services for all business lines. It will
consistently aim to its own climate neutrality and support its Clients in doing so.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 69
Positive banking
Customer relations
We build lasting relationships with our internal and external Customers. We
are sensitive to their needs. Our motto is: "We listen, we understand, we act".
We listen to the voice of Customers
We conduct NPS (Net Promoter Score) research on the #KLIENT platform and
Mystery Customer research.
We gain knowledge directly from Customers who contact us via the hotline,
chat and e-mail.
We verify the topics of conversations with the Contact Centre thanks to our
speech analysis system.
We value the opinions of our employees and we use their knowledge.
We ask why Customers resign from our services.
The #KLIENT platform is a source of knowledge about the results of research
and Customer feedback. The data is automatically updated as Customers
complete subsequent surveys. The tool is currently used by over 4 thousand
employees of the Bank and partner companies.
In 2022, we launched Customer Journey research, which allows us to respond
to Customer needs on an ongoing basis. We were looking for new research
methods and tested qualitative research, a VoiceBot and online surveys. Some
of the newly found solutions will be used in the following year as a permanent
element of research.
We approach research in a multifaceted fashion. We analyse opinions
expressed in internal and external research and observe market trends (not
limited to the field of banking).
Within the Bank, we share results and reports from individual surveys on an
ongoing basis. We combine them with operational and complaint data. Thus,
we create detailed recommendations for specific business lines.
Our joint actions produce results:
1st place in the Traditional Banking category ("Kowalski") in Newsweek's
Friendly Bank ranking (+3 places compared to 2021),
2nd place in the Company-Friendly Bank ranking of the Forbes Polska
magazine (+4 places compared to 2021),
6th place in the Digital category in Newsweek's Friendly Bank ranking (+3
places compared to 2021)
These awards show that we are close to our Customers – individual and
corporate – and that we guide them towards the right financial decisions. We
are constantly improving our competencies and setting the bar ever higher to
make the world a friendlier place. We are starting this mission by changing
ourselves.
We are glad that our actions are noticed and appreciated.
We understand our Customers
In 2022, we continued to implement a strategy that we adopted in 2020: the
Customer is placed at the centre of our attention.
One of the strategy's elements is the Customer Excellence Board (CEB), i.e.
meetings devoted to discussing the key needs of our Customers, analysing the
main reasons for complaints and determining actions. The meetings are
attended by representatives of many departments: Tribe Leaders (in
accordance with the Agile methodology), Product Owners, representatives of
sales and service channels as well as compliance, risk, operations and IT
monitoring.
In 2022, the CEB met six times. We talked about the qualitative and operational
results that indicate Customer satisfaction. The talks produced over 60
dependencies addressed to Tribe, Expert Centres and other operational units.
In 2022, we decided to establish a CEB platform for the SME and Corporate
Banking segments.
We also organise Customer Room workshops aimed at optimising and
improving the efficiency of key processes. To understand our Customers better,
we analyse their stories and map emotions. The emotions of employees who
support a given process are also considered. Such an approach allows us to
pinpoint the direct causes of problems. The workshops are attended by
representatives of units involved in a given process. Specialists in particular
areas can analyse issues from different perspectives (employee and Customer).
Step by step, they work out long- and short-term solutions.
In 2022, based on the defined areas for improvement, we developed and
implemented a number of changes. Some are listed below:
Challenge
Solution
Taking care of the internal
Customer
We value employee input and take into account the
perspective of those directly serving Customers to
improve our systems, processes and products.
Customers treat the Bank
holistically
Convergent approach to Customers and their needs
– micro Customers can use the GO-booking app,
the telephone terminal, car rental, and can attend
webinars.
Changing Customer lifestyles
We are expanding the scope of our services in
remote channels, for example through the Online
Expert Centre. Customers can also connect with us
after the closing hours of the Customer centres.
We are extending the functionality of the chat by
adding new topics, including debt collection. With
the convenience of use in mind, we have added the
chat directly to the mobile application.
We constantly provide training for our employees. We have introduced
Customer Experience training on the internal My Development platform. We
also conduct training for new employees and managers.
Our goal of being a Customer-centric organisation is supported by the Advocacy
Programme implemented within the BNP Paribas Group.
The Advocacy Programme focuses on many aspects of Customer-centricity. It
builds employee awareness as to the importance of focusing on the Customer
and promotes commitment among managers. It encourages the use of
knowledge about Customers and employees to improve the Customer
experience and verify whether the chosen actions have produced the expected
results.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 70
Responding to Customer needs
We improve our processes and implement new solutions. In 2022, we identified
over a dozen initiatives and changes based on Customer feedback. We involved
all the Bank's employees in their implementation, which included the following
steps:
In GOonline for individual Customers, we have implemented a display of the
total amount due for the repayment of a cash loan. This resulted in a
decrease in the number of Helpline calls on this topic and a decrease in
incorrect repayments.
We have provided debt collection service via chat in GOonline. Customers
with access to GOonline internet banking can chat about their arrears with an
employee of the Debt Collection and Restructuring Department.
We have introduced the possibility of confirming an employee's or Customer's
identity during a telephone conversation in the GOmobile application (using
push authorisation).
We have added a new functionality in GOonline: displaying the balance after a
transaction in account history.
We have introduced portfolioing in Customer Service (Business Service Zone)
so that SME Customers also have a dedicated consultant on the hotline. It is a
response to Customer needs – increasing the comfort of service, providing
faster access and assistance.
We changed the wording of the terms and conditions for mortgage loan
agreements in parts which may not have been easily understandable.
We have added another option to personalise GOmobile – the possibility to
turn on dark mode in the application.
We have added a mobile card to the online application form for opening the
Account Open to You (Video Verification process).
We have introduced changes in the processing of individual Customer credit
card closure applications. If the balance is different from 0, a day after the
notice period ends, the Customer receives a confirmation of the termination of
the credit card agreement (via text message) with a request to settle the
underpayment or indicate the account for overpayment transfer. In addition,
information about the closure was placed on the SOF (a document sent to the
Customer within 14 days of finalising the card termination process).
We have changed the layout of the credit card statement for individual
Customers. The new version is more legible and makes it easier for Customers
to manage their credit card debt on their own. We based the new layout, i.a.,
on a survey conducted among our Customers with credit cards.
Whether Customers visit the Bank's Customer centre or contact us via remote
channels, we wish to ensure an equally high level of service. We implement
further innovative solutions:
A chatbot that handles inquiries about products, whose knowledge is
constantly updated.
The Virtual Online Advisor supports mortgage Customers and Micro segment
Customers. The Customer can conveniently arrange a visit to the Customer
centre as well as a consultation with the Virtual Online Advisor.
Another form of meeting Customer needs is care for the quality of
communication sent from the Bank. We simplify messages according to plain
language rules and state them in a way that is clear and easily understandable
for the Customer.
Handling and considering complaints
The process is one of the main sources of Customer feedback. The signals we
receive help us develop and meet the expectations and needs of our Customers.
The process owner is the Managing Director of the Transformation and
Experience Development Division.
In 2022, we took over the handling of complaints regarding products and
services provided by the Brokerage House. Currently, we receive signals from
Customers regarding almost all products and offers provided by the Bank.
Thus, we implement the two main pillars of the complaint process: qualitative
and operational. As a result of our endeavours, in 2022 we received over 11%
fewer complaints than in 2021. This also translates into a positive assessment
of the complaint process provided by our Customers in cyclical NPS surveys. At
the end of 2022, the result was 5.3.
Customer Ombudsman
Complaints are not the only type of Customer feedback we respond to. The joint
path of the Customer and the Bank sometimes leads to non-standard cases
that require an individual approach. Such issues are handled by the Customer
Ombudsman Team, a unit which considers the cases of Customers who did not
agree with the results of the complaint process. The Customer Ombudsman
Team also verifies complaints addressed to the Bank's Management Board, the
Supervisory Board and the Bank's Spokesperson. It supports communication
with Customers who raise problematic and important issues on social media.
In 2022, we have modified the organisational structure. As a result,
three specialist complaint teams dealing with different types of
complaints and the Customer Ombudsman Team were allocated into
the Customer Dialogue Office area. Thus, all units responsible for
handling the complaints process jointly diagnose problems reported
by Customers, act to eliminate them in the future, and adapt more
effectively to the requirements set by regulators. This also allows us to
respond to our Customers quickly.
13
calendar days – average time for
handling complaints in 2022
11%
fewer complaints in 2022
compared to 2021
2,900
cases were submitted to the
Customer Ombudsman in 2022
(including 403 addressed directly
to the Bank's Management Board
and Supervisory Board)
83%
of appeals to the Ombudsman in
2022 were submitted by individual
Customers (17% by companies)
12%
fewer cases compared to 2021
14.5%
of cases (the largest percentage)
settled by the Ombudsman in 2022
concerned mortgage loans
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 71
Complaint handling
Complaint handling and response standards are additionally specified in the
"Complaints Policy". It defines the duties at each stage of the process and
indicates the division of roles, tasks and responsibilities of specific units. It also
describes the possible forms of submitting complaints.
Customers can submit complaints:
via the online banking system (chat),
via the online form on the Bank's website,
by phone,
in writing,
in person – at any Customer centre.
Our aim is not just to indicate areas in need of improvement to the owners of
specific products and processes. We want the complaint process to be
transparent and intuitive for everyone. Therefore, in 2022, we introduced the
new GObetter complaint system to our employees. It is already used by:
complaint area employees who handle and settle Customer complaints,
employees from the Contact Center, Electronic Channels Service Department,
Debt Collection Department and Customer Centres. They can register
Customer cases, verify other Customer complaints and use a fully automated
Commercial Gesture system,
employees from the after-sales service and business areas, who can use
GObetter to answer inquiries about ongoing complaint cases.
We are working on providing our employees and Customers with further
functionalities of the GObetter system. The most important features that are
already available include:
Omnichannel – all Customer complaints, regardless of the contact channel,
are registered within a single system.
Trade Gesture – using the Trade Gesture is even simpler. The Customer
receives a quick refund of erroneously collected funds.
User-friendly – the application is simple and intuitive. Filing a complaint
takes less time. The application provides suggestions about the next steps.
Complaint status – GObetter provides information about the current status of
the complaint. It is convenient not only for the Customer but also for the
employee.
Plain Language – all messages to Customers and complaint responses have
been prepared in accordance with plain language principles.
Functionality – much easier reporting. A single database contains all the
information needed to analyse and introduce changes.
Increased process automation – particularly important in handling
transaction fraud complaints. The automation significantly accelerates case
verification and responses to Customers.
One of the advantages of the GObetter system is the increased automation of
the Trade Gesture. It enables employees in the first line of contact to use this
solution even more easily. It facilitates the handling of cases related to fees
and commissions already at the stage of conversations with Customers. In
addition, once a refund is posted, the Customer receives a confirmation of the
positive response to their complaint via the selected form of electronic contact.
Thus, we build lasting relationships with our Customers and a positive image of
the Bank. As a result, in 2022, Customers benefited from the Trade Gesture 15%
more often than in 2021.
The GObetter system also allowed us to improve and partially automate the
process of handling fraud transaction complaints. These cases, when properly
registered by a front-line employee, automatically generate tasks for the Bank's
internal units responsible for providing information to complaint employees. As
a result, we can respond to the Customer more effectively and faster. It also
means that we are meeting the regulator's expectations and abiding by the law
in the handling of these cases.
In addition to providing and developing the new GObetter system, we also care
about cooperation with units that support front channels. Therefore, in 2022,
we organised a course for Quality Managers in Customer centres devoted to
complaints and ways of handling them. During the meetings, we explained the
risks associated with handling complaints, but we also presented the benefits
of obtaining Customer feedback through this channel. Furthermore, we
presented the GObetter system and the features available to employees when
processing complaints. We intend to continue the course in 2023.
Transparency and dialogue with Customers
[3-3] [Simple and transparent communication]
We systematically simplify the language used to communicate with our
Customers. Since 2019, we have gradually been adjusting our documents,
letters, communications and promotional materials in accordance with the
plain language standards.
In 2022, we continued our cooperation with an expert – a linguist and an
experienced plain language trainer. As part of the cooperation, we regularly
simplify communications and teach our employees about the rules of plain
Polish.
We use plain language in communication with all Customer segments: from
individual Customers, through micro-enterprises, to the corporate segment.
In 2022, we conducted advanced, multi-stage training for 15 plain language
consultants at the Bank, which ended with an exam. Thus, in the last two years,
65 employees of the Bank have become plain language consultants. We
systematically update and supplement our consultants' knowledge during
monthly workshops and lectures conducted by an expert.
In 2022, we also launched training on the basic principles of plain language for
all employees of the Bank on the e-learning platform. By the end of December,
42 people took part.
On the intranet, we provide employees with training materials that explain the
rules for writing various forms of messages, e.g. text messages or e-mails. We
update and expand the database of these documents on an ongoing basis.
We simplify legal texts – contracts and regulations for highest volume
products, i.e. loans and credits, as well as formal documents related to
investment products for both individual Customers and enterprises.
Examples of content we simplified in 2022 include:
Regulations of FX Electronic Access Channels, Regulations of Dual Currency
Deposits and other documents – certificates, powers of attorney, etc. for the
Financial Markets Division,
after-sales forms for mortgage loans,
subscription terms for structured deposits,
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 72
Cash Loan Agreement concluded in remote channels.
Accessibility
[203-1]
We want to create an ecosystem of solutions that provide each of our
Customers equal access to banking and the highest comfort and simplicity of
use. We develop offline and online channels, improve procedures and facilitate
access to banking for our Customers. We operate in accordance with the 2022-
2025 GObeyond strategy, which states that accessibility is one of our key
commitments in the POSITIVE pillar. We place particular emphasis on
facilitating the use of banking services by people from groups at risk of social
exclusion. The disabled and elderly will find products and services tailored to
their needs both in-person and online. We regularly analyse all access
channels to ensure functionality and user-friendliness following the best Web
Content Accessibility Guidelines (WCAG 2.0).
From a formal perspective, issues of accessibility at our Bank are regulated in
the "Principles of providing bank documents in a form accessible to special-
needs Customers”. As a Bank, we also meet the requirements of the Act on
ensuring accessibility to people with special needs.
How we increased availability in 2022:
we trained more employees on how to serve Customers with disabilities,
more Customer centres received the “Barrier-free facility" certificates,
we increased the number of ATMs accessible to persons with disabilities,
we installed further induction loops for people with hearing impairment,
we increased the availability of the website and the GOmobile and GOonline
applications,
we made efforts to adapt our offer and services to the needs of the elderly.
Accessibility for people with special needs
The assistance of a Polish Sign Language interpreter is available in each
Customer Centre. Induction loops, i.e. hearing aid systems, operate in 195
Customer centres, enabling the hearing-impaired to receive clear sound
through a telecoil (present in almost every hearing aid). Customers can also
order visual recordings of document content in Polish Sign Language. Each
branch is equipped with a magnifying glass and a frame that facilitates signing
for people with visual disabilities. We also provide contract templates in the
form of audio recordings, enlarged printouts and translations into Braille.
At the end of 2022, 103 of our Customer centres possessed “Barrier-free
facility" certificates issued by the Integration Foundation. It is the best result
among Polish banks. The certificate confirms that a building is equipped with
amenities, e.g. for people with mobility, sight and hearing disabilities, as well
as for the elderly and those caring for small children. In practice, this means
that our Customers can freely move around the Bank's branches and use the
implemented amenities.
Our strategic goal is that at least 50% of our Clients’ Centers be eligible for the
“Barrier-free facility" certificate by 2025.
All our branches have also received the OK Senior certificate awarded by the
National Institute of Silver Economy. We were the first and remain the only
Polish bank to receive them. The certificate attests that we offer senior-friendly
solutions and services for the elderly that are safe, accessible, understandable
and reliable.
In 2022, the Foundation of the National Institute of Silver Economy provided
senior-support organisations with free OK SENIOR Passports for the 3rd time.
The booklet contains key information for seniors, which can be used at the
doctor's, in the pharmacy, and in everyday life. Our Bank was one of the
partners of the initiative.
How we ensure our banking offers accessibility to the deaf and hard of hearing:
online support of sign language interpreters,
online form to book visits in sign language,
Polish Sign Language translator available on the hotline,
visual recordings of document content in Polish Sign Language,
induction loops in branches.
How we make our banking offer accessible to the blind and visually impaired:
document templates in the form of audio recordings, enlarged printouts and
translations into Braille.
magnifying glasses,
frames facilitating signing,
ATMs adapted to the needs of the visually impaired,
placing decorative foil on glass panes in branches.
Cooperation with partner organisations helps us ensure the availability of our
products, services and branches.
Partnership
Description
Accessibility
Plus
The Bank is a signatory of the “Partnership for Accessibility”
programme developed by the Ministry of Investment and
Economic Development, as part of the Accessibility Plus
initiative. Our goal is to adapt our products and services to the
needs of people with disabilities, as well as to the needs of the
elderly and those at risk of exclusion.
Integration
Foundation
The Bank is a long-term partner of the Integration Foundation.
The Foundation supports us with regard to increasing the
availability and user-friendliness of our services. As part of the
cooperation, the Bank transforms, audits and certifies branches
to ensure their accessibility for people with disabilities. Digital
channels are adapted to the current standards. Furthermore, we
promote accessibility and inclusiveness in business.
103
Clients’ Centers with “Barrier-free
facility" certificate at the end of
2022, which constitutes 25% of all
branches
195
Clinets’ Centers are equipped with
induction loops
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 73
Partnership
Description
Accessible ATM
We are a partner of the Accessible ATM project, which provides,
i.a., a freely accessible online platform with a database of ATMs
adapted to the needs of the disabled. The project is being
implemented by the Polish Bank Association in cooperation with
Polish banks and the “Widzialni” Foundation, with the support
and under the patronage of the National Bank of Poland and the
Ministry of Entrepreneurship and Technology.
National Institute
of Silver Economy
As part of the cooperation, representatives of the Institute
conduct mentoring workshops for the Bank's employees on how
to effectively support seniors.
Migam „RKPK”
Sp. z o.o. S.K.A.
As part of the cooperation, the Migam company supports the
Bank in increasing the availability and user-friendliness of
services for people with hearing disabilities. Customers can use
the services of a sign language interpreter, e.g., when opening an
account
DeafRespect
Foundation
The Deaf Respect Foundation supported the launch of sign
language interpreting services at the Bank and carried out a
service quality audit of the “Migam” technology.
Social and environmental topics in marketing communication
Little Mr/Ms Independent Account and “Mission: Independence”
In 2020, we launched an offer addressed to parents and children: the “Little
Mr/Ms Independence Account”. The launch was accompanied by an educational
campaign entitled “Mission: Independence", which supported parents in
building their children’s financial awareness.
In 2021, we added the Parent Zone to the misjasamodzielnosc.pl platform. The
new content is addressed to those who wish to teach their children about
finance and are looking for helpful tools.
Information about the "Little Mr/Ms Independence Account" is available at:
https://www.bnpparibas.pl/klienci-indywidualni/konta/konto-karty-
samodzielniaka.
Information about “Mission: Independence" can be found at:
https://www.bnpparibas.pl/misjasamodzielnosc/
Mission: Education
In 2020, we started the implementation of an interdisciplinary project, Mission:
Education. It aims to improve public knowledge concerning finance, ecology,
security, entrepreneurship and psychology. Beneficiaries of the programme gain
new skills, discover their own potential, and broaden their horizons.
In 2022 we continued activities within the project through:
Financial education classes for senior citizens, primary school pupils and high
school students conducted by our employees based on their original ideas
and materials.
The addition of a Parent Zone to the "Mission: Independence" website. We
created a knowledge database for parents who want to teach their children
financial independence. It contains a guide entitled "How to discuss pocket
money with a child?", as well as answers to the most pressing questions
about pocket money and tips from experts in various fields: psychology,
economy, social work, sociology. Articles, podcasts and other financial
learning tools for parents are also provided.
Cooperation with the Kosmos dla Dziewczynek Foundation. We conducted a
workshop entitled "SUPERHEROINES in the classroom" for primary school
students. SUPERHEROINES are workshops for children aged 8-12, which can
be conducted by primary school teachers and other educators. The classes
introduce the children to 24 inspiring women associated with the history of
Poland. They represent various professions, values and talents, such as
courage, charity, enthusiasm, visionary approaches, diligence, patience, and
eagerness to act. Thus, children get the opportunity to consider their own
values and find values common to the whole class or group. As a result, they
choose a class superheroine to inspire them throughout the year. Owing to
the interesting scenario and the use of various forms of communication
(animation, podcasts, SUPERHEROINE cards), the workshops are engaging and
attractive.
Cooperation with Digital University on the BE.ECO project. The project is
carried out in schools, its aim is to create a community centred around
ecology. A Zone for teachers, students and their parents was created on a
dedicated website. It is a space for everyone who wants to lead an eco-life. As
part of the project, a series of free workshops for primary school teachers was
organised. The meetings, supervised by experts, will supplement and enrich
the educators' knowledge about ecological challenges and teach them to use
specific tools and materials. After the workshop, teachers can use ready-
made lesson plans for children, and thus contribute to building social
awareness among the young generation.
The ABC of Economics is a project of the Czepczyński Family Foundation for
schools, aimed at popularising the economic education of preschoolers (5-6-
year-olds) and primary school pupils (grades 1-3). It provides educational
packages to 40 local kindergartens and schools indicated by the Bank's Local
Ambassadors.
Mission: Pocket Money – a socio-educational project
The Bank conducted a study of parents and children's behaviour in the context
of financial education and identified socially important topics. Based on the
needs of parents, the Bank created educational materials on "pocket money"
addressed to parents and children.
The Bank invited six experts to cooperate: Natalia Tur – family sociologist,
Tatiana Mindewicz-Puacz – psychotherapist, Monika Sajkowska – president of
the board of the Empowering Children Foundation, Maciej Samcik – financial
journalist, Aleksander Naganowski – director of digital solutions development
at the Polish Mastercard Europe branch, Grzegorz Markowski – journalist,
partner at CPC Brand Consultants. The team of experts developed a "Parent's
Pocket Guide", wherein they suggest how to talk to children about pocket
money. The Bank has also introduced a dedicated subpage to the
misjasamodzialnosc.pl – "Mission: Pocket Money 2022". In addition to the
guide, it contains answers to parents' most pressing questions about pocket
money and tips from experts (rooted in scientific research) to help them make
rational decisions regarding children's finances. It also provides articles,
podcasts and other tools for learning about finances.
The campaign was accompanied by the "Mission: Pocket Money" educational
programme carried out in primary schools between March and May 2022.
Using educational materials provided by the programme, teachers conducted
financial education lessons in grades 3-4. Children could also take part in a
contest with prizes prepared by the Bank. The programme was attended by 935
school groups, and over 28,000 children participated.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 74
Our initiatives within the "Mission: Education" project were recognised and
awarded in 2022 by the juries of the "Złote Spinacze", Golden Arrow, and Effie
Awards competitions.
“First Aid for Humanity” campaign
In cooperation with the Polish Red Cross, the Bank conducted a social
experiment supporting unique first-aid training, which was also a tolerance
lesson. Participants tested their skills on phantoms characterised as a
homeless person, a Muslim refugee and a genderqueer person. The surprising
situation allowed them to confront their own beliefs, barriers and stereotypes.
At the end of the training, the participants met the people who were the
inspiration for the stories of the resuscitated.
A film about the event was created in cooperation with the VMLY&R agency.
The recording of the experiment is regularly utilised by the Polish Red Cross
during first aid training. In the next stage, it will be shown in schools
cooperating with the organisation and can also be used e.g. during events
related to first aid and summer campaigns of the Polish Red Cross.
Research confirms that the campaign influenced the behaviour of recipients:
32% of participants declared an increased willingness to provide first aid,
regardless of the victim's dissimilarity, after watching the main film (Source:
Biostat qualitative study, n=501 people). More information on the subject can
be found at: https://pierwszapomocludzkosci.pl/
Feminatives in everyday language
The Bank commissioned the Difference research agency to conduct a study
among representative groups of children and adults. The key stage was a
pioneering study of children. It involved 248 students who were asked to
spontaneously draw representatives of two professions defined in the
masculine and neutral version (e.g. scientist [masc. in Polish] vs person
conducting scientific experiments). The next stage of the study was a discussion
with children about the drawn characters – their characteristics and behaviour.
In addition, an online study (CAWI) was conducted on a group of 400 adults. It
checked whether our reactions and evaluations of professionalism are
dependent on a person's profession being defined by a masculine, feminine or
neuter noun. This provided insight into the hidden (latent) associations,
barriers and stereotypes attributed to women and men in various professions.
As part of the campaign, the Bank created a dictionary of female names of
professions. More information can be found at:
https://www.bnpparibas.pl/wystarczyslowo#!feminatywy
Where are our Patronesses
In the second edition of the competition, the Bank encouraged educational
institutions to involve students, parents and teachers in the search for
candidates who represent values they identify with, and then choose a
Patroness, e.g. through consultations or voting. To apply for a Bank grant worth
PLN 15,000, a school representative had to submit a competition application
stating how the school would like to honour the Patroness and popularise her
achievements in the school community. More details can be found at:
https://www.bnpparibas.pl/patronki
Agro on heels
Agro on heels is a project for women living and working in rural areas, who are
increasingly involved in making decisions about the direction of their
enterprises' development.
The first large-scale edition of the project took place in 2016.
The Agro on heels meetings are an opportunity for women farmers to visit
places offering art and development. These include theatres and
philharmonics, where specially organised performances and concerts are
shown. The project allows participants to meet other women who lead similar
lifestyles and exchange experiences.
We organise events in cooperation with local media, and local Agro-sector
institutions – Chambers of Agriculture and local authorities.
In 2022, the event was held at the Podlasie Opera and Philharmonic in
Białystok. Over 800 women attended.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 75
Social involvement
[3-3] [Charity and philanthropy (including BNP Paribas Foundation projects)]
For many years, we have been systematically involved in the life of local
communities. In accordance with the POSITIVE pillar of the 2022-2025 GObeyond
Strategy, we strive to ensure that all the Bank's activities have a positive impact,
i.a. social and environmental. We want the Bank to be an agent of positive
change and a good neighbour, mindful of local needs. We focus on counteracting
social exclusion, supporting diversity and financial education. Our impact on
society is strengthened by the BNP Paribas Foundation, its educational
programmes and environmental philanthropy. We also inspire and facilitate
employee volunteering.
Our plans and activities:
strengthening the social commitment of employees through volunteering and
individual philanthropy as well as initiatives in the field of financial education,
development of tools supporting social involvement, e.g. a volunteering
platform,
strengthening cooperation with non-governmental and expert organisations
combating climate change and social exclusion, as well as supporting diversity,
continuation and strengthening of the Foundation's scholarship programmes,
e.g. "Class", "Knowledge to the Power".
BNP Paribas Foundation
The BNP Paribas Foundation has been running scholarship programmes since
2006, it also coordinates employee volunteering and cooperates with social
organisations, supporting them with expertise and financing. The Chairman of
the BNP Paribas Foundation Council is the President of the Management Board
of the Bank. The foundation's Council includes representatives of the areas in the
Bank that are key to the Foundation's activities.
The Foundation's mission is "to boldly change the world into one with less
inequality and greater confidence in the future of our planet."
The Foundation conducts:
educational programmes that use scholarships and development initiatives to
provide equal educational opportunities and inspire children and youth,
environmental philanthropy programs – protection of ecosystems and
implementation of initiatives focused on care for the natural environment,
activities promoting social commitment – employee volunteering and
individual philanthropy of the Bank's employees.
Activities of the BNP Paribas Foundation
Initiatives addressed to
employees
Employee volunteer programme
Individual philanthropy programme "I support all
year long”
"Competition for Volunteer Projects"
The Noble Gift charity event
"Krwinka" blood donation campaign
"Good Kilometres" campaign
"Two hours for Earth"
Initiatives addressed to
external stakeholders
"Class" scholarship and development programme
"Agrotalents" scholarship programme
"Dream up" educational programme
Tutor-scholarship programme "Knowledge to the
Power" in cooperation with the Ocalenie
Foundation
"Meetings with Music" programme in cooperation
with the National Philharmonic
"Bankers for the Financial Education of Youth"
(BAKCYL) programme
Initiatives supporting
refugees
#TogetherforUkraine volunteering programme
Solidarity Package
Grassroots volunteer initiatives
Programmes and partnerships
Employee volunteering
The Bank's "You can count on me" employee volunteering programme has been
running since 2011. Our employees, supported by the BNP Paribas Foundation,
can adjust the form of involvement to their needs and capabilities. We support
the implementation of internal initiatives, team volunteering and participation in
social campaigns coordinated by the Foundation and NGOs. To encourage
employee involvement, our Foundation provides a special volunteering platform
facilitating the creation of new volunteering campaigns and joining existing ones.
Each person employed at the Bank can devote 16 fully paid hours per year to
volunteering. Simultaneously, the social initiatives of employees are part of an
international programme of the BNP Paribas Group, #1MillionHours2Help,
coordinated in Poland by the BNP Paribas Foundation.
In 2022, the BNP Paribas Foundation became a research partner of the Academy
for the Development of Philanthropy in Poland "Employee Volunteering of the
Future".
Individual philanthropy programme „I support all year long”
The "I support all year long" programme has been active at the Bank since 2017
and all employees can participate. It is a simple tool for voluntary salary
deductions. Regular payments help NGOs plan their activities in the long term. In
2022, employees decided to support the Empowering Children Foundation and
the Mudita Association. 345 employees participated in the programme. Within 5
years, we collected a total of PLN 360,000.
Competition for Volunteer Projects
In the last 10 years, the annual Competition for Volunteer Projects has become a
fixture of our volunteer scheme. Employees from all over Poland can submit
initiatives which respond to the immediate needs of their local communities. The
winning entries are granted up to PLN 4,000. The projects are carried out in
collaboration with local social organisations and the employees involved receive
additional subject-matter support from the BNP Paribas Foundation.
Competition for Volunteer Projects in 2022:
63 projects completed,
254 employees involved,
assistance for 5,733 people,
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 76
2,032 hours of involvement,
over PLN 230,000 allocated by the BNP Paribas Foundation for the
implementation of projects.
Noble Gift
Since 2018, the Bank has been a strategic partner of the Noble Gift campaign.
During this time, we have donated nearly PLN 5 million. Our Foundation runs the
largest organised employee volunteering campaign for the beneficiaries of the
Noble Gift. In 2022, nearly 30 of our social and business partners joined the
initiative. We have also enabled Customer involvement in the charity event. The
Bank's website contains a quick payment option, with transfers going directly to
the account of the organiser, i.e. the WIOSNA Association. In addition, from 17
November to 26 December 2022, we doubled each payment. In total, (together
with our Customers) we donated PLN 875,644 to the Noble Gift.
Noble Gift in 2022:
Since 2018, the Bank has been a strategic partner of the Noble Gift campaign.
During this time, we have donated nearly PLN 5 million. Our Foundation runs the
largest organised employee volunteering campaign for the beneficiaries of the
Noble Gift. In 2022, nearly 30 of our social and business partners joined the
initiative. We have also enabled Customer involvement in the charity event. The
Bank's website contains a quick payment option, with transfers going directly to
the account of the organiser, i.e. the WIOSNA Association. In addition, from 17
November to 26 December 2022, we doubled each payment. In total, (together
with our Customers) we donated PLN 875,643.96 to the Noble Gift.
Noble Gift in 2022:
140 Bank employees and companies of the BNP Paribas Group became Noble
Gift leaders (including 104 people from the Bank),
165 families in need received packages prepared by our volunteers,
3,028 volunteers from the Bank and BNP Paribas Group companies (including
2,286 from the Bank),
PLN 1,000 of support for each package from the BNP Paribas Foundation,
27 social and business partners joined the initiative,
A total of 205 families received support from Noble Gift.
Good Kilometres
Every year, the BNP Paribas Foundation organises the Good Kilometres
campaign, which allows employees to combine physical activity with social
commitment. For a month, we count the kilometres covered by employees on
bikes, running or practising other long-distance sports. Each kilometre is
converted into financial support and transferred to a social organisation,
selected in an employee vote.
Good Kilometres in 2022:
75,474 kilometres covered,
PLN 25 thousand donated to the Empowering Children Foundation,
413 engaged employees,
8,940 sports activities, e.g. cycling, roller-skating, running, walking the dog,
walking, plogging (jogging combined with garbage collection).
Two hours for Earth
In April 2022, we joined the International Earth Day celebrations. A grassroots
employee initiative supported by the BNP Paribas Foundation resulted in the
organisation of the “Two Hours for Earth” campaign. Our volunteers, joined by
relatives and co-workers, could devote two hours to cleaning green areas
together. 272 employees from all over Poland took part in the event.
The Foundation’s educational initiatives
“Class” development and scholarship programme
"Class" is a scholarship programme of the BNP Paribas Bank initiated in 2003
and functioning under the auspices of the BNP Paribas Foundation since 2006. As
such, it is one of the longest-running scholarship schemes in Poland. Its goal is
to help primary school graduates from poor families who live in rural areas and
small towns. Scholarship holders can attend top high schools in five Polish
college towns. They receive full financial support for the duration of their high
school education and a scholarship for the 1st year at university. The holders
can also receive financial support for their social involvement and attend holiday
and team-building trips. Over 20 years, we have allocated over PLN 26.7 million
for the implementation of the programme.
In 2022, the programme received the honorary patronage of the Minister of
Education and Science. We also received an award in the "ESG Educational
Programme" category in the "ESG Leaders" competition.
„Class” in 2022:
support for 873 graduates from 525 towns since 2003,
95 scholarships in the 2022/2023 school year.
“Agrotalents”
Agrotalents is a comprehensive programme for the development of young talents
– a system of scholarships for ambitious youth who see their future in
agriculture. Established in 2012, it is the result of cooperation between the BNP
Paribas Foundation, educational institutions and agricultural experts. Agrotalents
include:
A scholarship programme for the winners of the Agricultural Knowledge and
Skills Competition organised by the top 8 agricultural universities in Poland.
The programme's partner is the Warsaw University of Life Sciences. The BNP
Paribas Foundation funds 40 scholarships every year. In 2022, 16 students and
22 pupils won the Competition. So far, a total of 365 winners have received the
scholarship.
The Bridge Scholarship Programme of the Educational Enterprise Foundation is
addressed to the most talented students of agriculture after their 3rd or 4th
year at university. In 2022, the BNP Paribas Foundation provided 12
3,028
volunteers from the Bank and
group companies were involved in
the Noble Gift
345
employees took part in the
individual philanthropy programme
"I support all year long"
30,313
hours devoted to social initiatives
9,678
hours devoted to local
communities by the Bank's Local
Ambassadors
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 77
scholarships worth a total of PLN 73,500. So far, 115 students have
participated in the programme.
Cooperation with the Warsaw University of Life Sciences in the field of
education as well as the exchange of knowledge and experiences.
In total, 480 people were supported by the Agrotalents programme.
"Knowledge to the Power" tutor and scholarship programme
Since 2016 we have been cooperating with the Ocalenie Foundation to help
refugee youth, e.g. from Syria, Iraq, Ukraine and Chechnya. In 2018, we launched
a joint scholarship and tutor programme "Knowledge to the Power", which helps
them adjust to the Polish education system. Participants of the programme
receive the support and guidance of tutor-volunteers, take part in workshops,
and participate in joint educational and cultural outings and summer camps. The
organisers are in constant contact with the children's families and offer them
the necessary support.
Since 2019, the "Knowledge to the Power" programme is being implemented as
part of the BNP Paribas Group's European initiative for the integration of young
refugees. Since 2021, the BNP Paribas Foundation has been a strategic partner of
the Ocalenie Foundation.
“Dream Up”
Dream Up is an international program of the BNP Paribas Group and is currently
active in 29 countries. It was initiated and is financed by the BNP Paribas
Fondation in Paris. In Poland, the BNP Paribas Foundation organises professional
music classes for children and youth from social institutions in cooperation with
the Community of Sounds Foundation. In September 2021, the third edition of
the programme was launched.
”Dream up” in 2022:
over 40 participants from Warsaw community centres,
2 concerts – end of the school year and Christmas carolling.
"Meetings with music"
Since 2003, the BNP Paribas Foundation has been cooperating with the National
Philharmonic, and since 2011 we have been a partner of the "Meetings with
Music" – a series of concerts performed by philharmonic musicians for students
from small Polish towns.
“Meetings with Music” in 2022:
1,928 educational concerts were held,
336,770 students took part in "Meetings with Music".
Bankers for the Financial Education of Youth (BAKCYL)
Bankers for Financial Education of Youth (BAKCYL) is a sectoral educational
programme managed by the Warsaw Institute of Banking. Volunteers – partner
bank employees – share their practical knowledge and skills regarding financial
services with school youth. The Bank has been a partner of the initiative since
2013, and our activities are coordinated by the BNP Paribas Foundation. In 2022,
the Bank's employees conducted classes in primary and secondary schools:
"Your money", "From saving to investing", "Security in Cyberspace", "Financial
market - trust in business", "My finances - I think entrepreneurship" and "Wise
investing”.
During the 6th Congress of Financial Education and Entrepreneurship, we
received a distinction for the number of lessons conducted by Bank volunteers in
2021.
BAKCYL in 2022:
108 volunteers trained,
82 lessons (almost 1.6 thousand since 2013),
almost 35 thousand students took part in meetings with our employees since
2013.
The Foundation's environmental philanthropy
At the BNP Paribas Foundation, we want our programmes and initiatives to be
implemented in a sustainable manner and with respect for the natural
environment. We act for the climate by protecting and restoring key ecosystems
and providing ecological education. In 2022 we were a partner in two initiatives:
Regeneration in partnership with the UNEP/GRID-Warsaw Center – protection
of meadow ecosystems on the Bay of Puck, with particular emphasis on
pollinating insects. The programme contributes to the preservation of molinia
meadows, areas with high biodiversity and habitats, e.g. of the protected large
heath butterfly.
#BeeYope in partnership with YOPE and the Meadow Foundation – an
educational campaign for primary school students about the role of wild bees
and other pollinators in the ecosystem. Together, we have created educational
packages, which will help up to 20,000 children learn about the role of bees
and sow 20,000 m2 of meadows. The packages are also available online.
Support for refugees – war in Ukraine
Once the Russian invasion of Ukraine began, we immediately started support
initiatives at the Bank and the BNP Paribas Foundation:
we simplified the procedures for opening the "Account for Now" in the Bank's
branches for citizens of Ukraine,
we provided Ukrainian citizens with free cash withdrawals from all ATMs in
the country and free deposits and withdrawals at branches,
we refund commissions for transfers to Ukrainian accounts,
we launched a dedicated helpline in Ukrainian,
we introduced Ukrainian-language advisers at branches, available by
appointment,
we organised a Polish language course for Customers from Ukraine.
To support refugees employed in Ukrsibbank and employees of Bank BNP Paribas
from Ukraine, the Bank's centre in Leszno and 10 other facilities in Poland were
adapted as accommodations. The first refugees reached them in February. In
total, over a thousand people received shelter. We also launched a 24/7 helpline
for employees from Ukraine, operated by Ukrainian volunteers from the Bank.
Each caller received information about the possibilities of transport from the
Polish-Ukrainian border and the availability of accommodation. All Ukrainian
Bank employees received an additional three days of leave and financial support
to help their relatives in the war-torn country.
Our Bank was also directly involved in helping those in need. As the only
financial institution, we cooperated with the Diia.Business Advisory Center for
Ukrainians, which was launched by the Ministry of Digital Transformation of
Ukraine, the Polish Ministry of Development and Technology, the Polish
Investment and Trade Agency and the Office of the Government Plenipotentiary
for Cybersecurity in cooperation with Mastercard. Diia.Business is a national
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project promoting entrepreneurship and export, initiated by the Ministry of
Digital Transformation of Ukraine.
We have introduced quick transfers to the solidarity fund and easy transfers
from the “I Have a Bonus" programme to facilitate our Customers' support for
refugees. The Bank was also a partner of the UA SOS application, which connects
people in need of support with those offering help.
The BNP Paribas Foundation was also involved in support initiatives. It provided
PLN 2 million of financial assistance to the Ocalenie Foundation and the Polish
Migration Forum. The Foundation also established a special solidarity fund for
refugees from Ukraine, which raised PLN 500 thousand. Owing to the support of
the BNP Paribas Group, this amount was doubled, and another PLN 1 million
was provided to social organisations involved in long-term aid from the first
days of the war: the Homo Faber Association, the Saint Nicholas Foundation, the
ANG Nienieodpowiedzialni Foundation, the Polish Center for International Aid
and the Splot Społeczny Foundation, which runs the Terminal of Culture
Integration Center in Gocław. Two more organisations received financial support
of PLN 100 thousand (each) at the end of 2022: the Brda Foundation for the
"Window" project (sending windows to rebuild houses in Ukraine), and the
Association for the Earth, which works with and for refugees residing in the
Lublin region.
From March to December 2022, Bank employees devoted over 5,000 hours to
volunteer initiatives in support of Ukraine. They took part in the
#RazemdlaUkrainy campaign coordinated by the BNP Paribas Foundation, which
supported 37 aid projects with subsidies of up to PLN 4 thousand. Bank
volunteers also joined the Solidarity Gift, a special edition of the Noble Gift. 31
leaders and their teams from various Bank areas, as well as companies and
subsidiaries of the BNP Paribas Group in Poland, joined the campaign, as did
volunteers from the "Class" Alumni Association (a scholarship and development
programme of the BNP Paribas Foundation). They prepared over 30 packages for
families in need.
We received the "DNA Award - because helping is in our genes" for
support related to the war in Ukraine from the Clean Air
Foundation and the Positive Ideas Foundation.
Initiatives for local communities
The Bank’s Local Ambassadors
The Bank's Local Ambassadors (#BLA) programme provides our employees with a
platform for involvement in activities which benefit local communities. The Bank
provides subject-matter and organisational support for these initiatives. In 2022,
the Bank's Local Ambassadors programme was implemented in cooperation with
two partners: the National Institute of Silver Economy and the Exempt from
Theory Foundation. As part of our cooperation with the Institute, we became a
strategic partner of the 6th Congress of Silver Economy. For the second time –
as the only financial institution in Poland – we received the OK Senior certificate.
For the eighth time, the Bank's Local Ambassadors served as mentors of social
projects implemented by the young participants of the Exempt from Theory
Contest.
#BLA in 2022:
132 Local Ambassadors of the Bank,
9,678 hours devoted to supporting local communities.
The Local Grants Programme
The Local Grants Programme is one of our most important initiatives, which
allows us to support local communities and non-governmental organisations.
Each year, our branch managers, their teams and the Bank’s Local Ambassadors
submit NGOs to the programme. We support especially initiatives that:
minimise social exclusion, especially among children, the elderly and people
with disabilities,
are aimed at supporting and integrating refugees,
help protect the environment and promote eco-attitudes,
promote entrepreneurship and strengthen the role of women,
help in the promotion of disease prevention.
Thus far, during the 12 editions of the Local Grants Programme, the Bank has
awarded 880 grants worth over PLN 2.9 million.
The Local Grants Programme in 2022:
60 grants for local social organisations,
grants worth PLN 300 thousand.
Donations and sponsorships
Donations
The main goal of financial donations is to support and develop civic activities, to
enhance the life quality of local communities, to support the social involvement
of the Bank's employees, and to promote healthy lifestyles and environmental
protection. All financial donations to non-governmental organisations and
institutions serve to increase the effectiveness of its socially-beneficial activities.
Table 12. The Bank’s financial donations to NGOs in 2022
Category
Amount (in PLN thousand)
BNP Paribas Foundation
3,000
Beneficiaries of the Local Grants
Programme
300
Organisations supporting social inclusion
and diversity
1,233
Organisations supporting education and
culture
727
Trade Unions
60
Strategic Partnership with the Noble Gift*
400
Health-promoting organisations
150
Organisations promoting environmental
protection
55
Organisations supporting refugees fleeing
Ukraine after Russia's invasion*
580
Total
6,505
* The table presents the value of donations. Both as regards the partnership with Noble Gift and support for refugees from Ukraine,
the Bank's financial and non-financial involvement is much broader and has been described in the Report.
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Sponsorships
The sponsorship policy’s primary goal is to build the brand and enhance its
recognition. Through sponsorship initiatives, we establish a positive image of the
Bank. Our sponsorship goals are a part of the global sponsorship strategy of the
BNP Paribas Group. It aims to support the development of tennis and culture
(especially cinema). The Bank’s logo is present at Polish tennis events, film
festivals, cultural and economic and technological events.
Table 13. Sponsorship expenses in 2022
Category
Amount, PLN thousand
Film events
1,713
Tennis events
2,546
Other sponsorship activities
3,808
Total
8,067
We are the strategic partner of the Warsaw Garden of the Righteous. The Italian
GARIWO Foundation inspired the creation of this garden during the first
European Day of the Righteous. On 6 March 2013, the Committee of the Garden
accepted the proposal of the Warsaw Wola District and established the Garden
in Jan Jura-Gorzechowski Square. Each year, we plant new trees in memory of
those who saved lives and protected human dignity. Thus, we commemorate
those who stood up to the Nazi and communist regimes of the 19th and 20th
centuries, and who opposed the genocides, mass murders and crimes against
humanity.
Film events
Cinematography is one of the key pillars of the sponsorship strategy of the BNP
Paribas Group. Our motto is #WeLoveCinema. In 2022, we were involved in
several initiatives, including:
BNP Paribas Summer Cinema Sopot–Zakopane – the longest summer film
festival in Poland. Film screenings took place every day after sunset and
admissions were free. Each day of the week had a different theme. We
sponsored Mondays, Tuesdays and Sundays. The films presented on these days
referred, among others, to the UN Sustainable Development Goals:
- Monday theme: "We Are Tennis". We presented films about tennis,
combining our passion for sport and cinema,
- Tuesday theme: "The world needs you." We presented films that drew
attention to the 13th Sustainable Development Goal, i.e. "Climate Action"
and to the 10th Sustainable Development Goal, i.e. "Fewer Inequalities",
- Sunday theme: "Woman and the camera". On Sundays, we showed the most
interesting films created by women. Thus, we implemented the 5th
Sustainable Development Goal, i.e. "Gender Equality",
BNP Paribas Green Film Festival – a unique international festival of ecological
films. We were the title sponsor of the festival's 5th edition. The organisers
gathered the best productions from around the world to teach about ecology
and promote eco attitudes. The screenings were followed by discussions and
other accompanying events.
Festival of UnUsual Film-Meetings – we were the main partner of the event.
BNP Paribas "Two Shores" – Art and Film Festival – is addressed to
connoisseurs of cinema and other arts. The festival provides an opportunity to
meet artists, stars and debutants. For the second year in a row, we were the
title partner of the event.
International Festival of Independent Cinema Mastercard OFF CAMERA – the
largest festival of independent cinema in Central Europe. For the fourth time,
we were the strategic partner of the event.
Wajda Anew – a Suwałki film festival, sponsored by the Bank. Participants
could admire an exhibition of Andrzej Pągowski’s posters. The author created
new posters for all 60 films by Andrzej Wajda. The exhibition visited Gdynia,
Łódź and Inowrocław. In 2023, we will exhibit the works of Andrzej Pągowski in
many Polish and European cities.
BNP Paribas Academic Night Cinema – we were the main partner of the event.
The 7th edition was the largest cultural project at the Wrocław University of
Economics, carried out jointly with the Nowe Horyzonty Cinema.
Cooperation with Cinema City – the largest multiplex network in Poland, with
whom we have been cooperating since 2019. Currently, we are a partner of all
IMAX cinemas in Poland and eight cinema screens in the largest Polish cities.
We are also a partner of a film screening series for women – "Ladies Nights".
The project takes place in 19 Cinema City theatres around the country.
Tennis events
We are part of the BNP Paribas Group, the largest tennis sponsor in the world.
Tennis, next to cinematography, is the second most important pillar of the
Group's sponsorship strategy. We are guided by the slogan #WeAreTennis. In
2022, we sponsored the following tennis tournaments in Poland:
BNP Paribas Poland Open – the largest tennis tournament in Poland. We were
the title sponsor of the event. The second edition of the WTA 250 tennis
tournament took place on the courts of Legia Tenis & Golf in Warsaw. It was
attended by the best players of the World Women's Tennis Association ranking,
headed by Iga Świątek.
BNP Paribas Business Cup 2022 – a series of tournaments for managers and
business owners. For the third time, we were the title partner of the event. The
tournament takes place in Warsaw, Poznań, Katowice and Gdynia.
15th Beskid Cup – Polish Artists' Tennis Tournament for the Bank Cup. It took
place in Jaworze near Bielsko-Biała, on the courts of the SPA Hotel Jawor.
In June 2022, we also organised a series of tennis events for children – Tennis
Children's Day. The events took place in Warsaw and Częstochowa. We invited
children of our Premium Banking and Business Banking Customers to all-day
activities promoting tennis.
BNP Paribas Young Talents
In 2022, we launched a new scholarship programme for young tennis players in
Poland - BNP Paribas Young Talents.
Teenage tennis players in Poland could receive a scholarship from the Bank. The
first edition of this new scholarship and development programme started on 1
July 2022 and lasted until the end of December. The initiative was announced on
28 May, during the Roland Garros tournament in Paris, where the first
beneficiaries were presented. Thus, Poland has joined countries where the BNP
Paribas Group has been running similar scholarship programmes for many
years, under the slogan "Young Talents Team".
The Bank provides its scholarship holders with monthly financial support for the
development of a professional career, as well as training, i.a. in public speaking,
career planning, social media management, and cooperation with sponsors.
Young tennis players can also gain the opportunity to participate in BNP Paribas
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tournaments, e.g. on a wild card basis, as a sparring partner or participant in
group training. The BNP Paribas Poland Open in July was such an opportunity.
The expert partner of the initiative is the Mariusz Fyrstenberg Tennis
Foundation.
Cultural, economic and technological events
In 2022 we were the partner of many international business and technology
events. Our representatives gave keynotes at conferences to share their
knowledge, and good practices in management, finance, agribusiness, energy
transformation and sustainable development. Some of the events are listed
below:
European Economic Congress in Katowice. 15,000 people attended the
congress, including 9,000 in-person and 6 thousand online. Over 550 media
representatives participated. 150 sessions were held with 1,000 panellists. We
were the main partner of the event.
European Forum for New Ideas in Sopot – one of the largest conferences in
Central and Eastern Europe. The main topic of the meeting was the future of
Poland, Europe and the world in times of great uncertainty. In 2022, we were
the main partner of the event.
European Financial Congress in Sopot. In 2022, discussions focused on the role
and condition of the sector in times of uncertainty and responsible finance
during the crisis. Topics related to the risk of war, the consequences of
sanctions and the need to rebuild Ukraine's war-ruined economy emerged in
sessions devoted to issues such as cybersecurity and technological
development in finance as well as panels devoted to ESG issues and
challenges related to rising inflation.
Impact CEE in Poznań – is the most prestigious economic and technological
event in Central and Eastern Europe, attended by top managers from the
largest global companies, political decision-makers, regulators, top scientists
and world-class experts. We were the strategic partner of the event. Bank
representatives took part in 8 discussion panels.
Infoshare in Gdańsk – is the largest technology conference in Central and
Eastern Europe. The bank was a platinum partner of the conference.
Open Eyes Economy Summit - International Congress of Value Economics in
Krakow. The event is dedicated to an economy based on social values. In 2022,
we were the strategic partner of the event, and the expert partner of the
"Green Deal – energy, food, health" path.
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The Bank of Green Changes
[3-3] [Reducing the negative impact of operations on the natural environment]
Responsibility towards the natural environment is one of the Bank's commitments under the POSITIVE pillar of the
GObeyond Strategy. For many years, we have been involved in counteracting climate change and minimising its effects. The
Bank of Green Changes programme aggregates all of the organisation's initiatives for the natural environment.
The Bank of Green Changes programme consists of:
constantly developing the offer of products and services that help our Customers transition to a low-carbon economy and
green investments (described in the "Sustainable Finance” chapter),
qualitative changes in the functioning of the organisation (so-called eco-improvements) minimising the negative impact
of operations on the natural environment,
educational activities addressed to employees of all Bank areas and external stakeholders and establishing partnerships
as well as supporting pro-environmental initiatives.
Our priorities in minimising the negative impact of our operations on the natural environment are: reducing CO
2
emissions,
implementing eco-improvements in the workplace, using energy from renewable energy sources and developing the Bank's
eco-fleet.
Carbon footprint reduction
[305-5]
The financial sector is extremely important for financing the economy. Thus, it has an impact on the real economy's carbon
intensity. With environmental impact in mind, the Bank has introduced a number of sectoral CSR policies and regulations
regarding, i.a., mining, coal energy, the fuel sector (with regard to unconventional oil and gas resources), and the agri-food
sector. All are aimed at reducing the emissions of the Bank's portfolio and the impact of investments on climate (e.g. by
refusing to finance coal mining and steam coal combustion). Further details can be found in the "ESG risk management"
chapter.
Operational steps taken by the Bank to reduce greenhouse gas emissions:
Purchase of energy from renewable sources – in 2020, the Bank signed an agreement with Respect Energy for the
purchase of energy. 100% of electricity purchased directly by the Bank stems from renewable sources.
Minimisation of energy consumption – in addition to the use of renewable energy sources, we implement energy-saving
solutions. We replace lighting with LEDs and install flow (instead of capacitive) water heaters, motion sensors, and heat
recovery systems. We optimise activities in terms of the HVAC system (heating, ventilation, air conditioning).
Photovoltaic installations at Customer centres – we assemble photovoltaic installations on buildings owned by the Bank.
Fleet electrification – we replace cars in the bank fleet with hybrid or electric vehicles. Our goal, stated in the GObeyond
strategy for 2025, is for all our cars to have a hybrid or electric drive..
Reducing business travel – we analyse data on business travel year-on-year and strive to operate more efficiently, thus
reducing the number of business trips.
Bicycle infrastructure – we encourage employees to cycle to work. In the Bank's head offices, we have provided locker
rooms with showers and car parks adapted to the needs of cyclists.
In 2022, in selected Customer Centres:
we installed 10 more photovoltaic installations,
we installed six heat pumps,
fluorescent lighting was replaced with LED lamps in 180 branches,
in the Warsaw Customer Center, we implemented the miniBMS system, which provides intelligent management of
heating, ventilation and air conditioning.
[305-1] [305-2]
Table 14. Group greenhouse gas emissions from operations (market-based)
source of GHG emissions
emissions (tonnes of CO
2
e)
2019
2020
2021
2022
Scope 1
6,094
5,249
5,289
6,518
Petrol
3,389
2,914
2,964
3,457
Natural gas
1,206
979
1,126
2,156*
Diesel
1,438
1,254
998
898
Heating oil
61
52
35
7
Refrigerants
-
50
166
0
Scope 2
13,158
3,614
5,172
4,250
Thermal energy
5,206
3,614
5,172
4,250
Electricity
7,952
-
-
-
Business trips**
897
486
331
771
Train
237
90
14
68
Private cars
189
245
279
179
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source of GHG emissions
emissions (tonnes of CO
2
e)
2019
2020
2021
2022
Plain
471
151
38
524
Scope 1+2
19,252
8,863
10,461
10,768
Scope 1+2+business trips
20,149
9,349
10,792
11,539
* A significant increase in the Group's natural gas consumption is due to gas heating at Campus Leszno. After the outbreak
of the war in Ukraine, from the end of February to May 2022, many Ukrainian families (mainly employees of Ukrsibbank)
found shelter in Campus Leszno: a total of over 160 people. This significantly increased the needs of the facility. Despite
higher consumption, the reduction target for 2022 was achieved.
** In 2022, we observed a significant increase in business travel. The end of the pandemic offered an opportunity for
employees from all areas of the Bank and the Group to hold a number of meetings to integrate and work closer together
after a long period of working mainly remotely. In 2023, we are planning initiatives to raise employees' awareness of the
environmental impact of business travel (especially by air) and to encourage a reduction in business travel.
Implementation of the GObeyond strategic goal (2022-2025)
2025 goal
Base year 2019
2022
2022 vs 2019
Reduction of CO
2
emissions
from operating activities - 55%
20,149
11,539
-43%
Table 15. The Bank's greenhouse gas emissions from operations (market-based)
source of GHG emissions
emissions (tonnes of CO
2
e)
2019
2020
2021
2022
Scope 1
6,094
5,249
5,289
4,900
Petrol
3,389
2,914
2,964
3,165
Natural gas
1,206
979
1,126
964
Diesel
1,438
1,254
998
764
Heating oil
61
52
35
7
Refrigerants
-
50
166
-
Scope 2
12,890
3,581
5,113
4,142
Thermal energy
5,160
3,581
5,113
4,142
source of GHG emissions
emissions (tonnes of CO
2
e)
2019
2020
2021
2022
Electricity
7,730
-
-
-
Business trips**
897
486
329
738
Train
237
90
14
68
Private cars
189
245
279
178
Plain
471
151
36
492
Scope 1+2
18,984
8,830
10,402
9,042
Scope 1+2+business trips
19,881
9,316
10,731
9,780
Method of presenting indicators:
The Bank has adopted reporting periods consistent with those applied by the BNP Paribas Group. Data showing energy consumption, emissions and business trips cover the period from 1 November to 31
October of a given year (in this Report it is the period from 1 November 2021 to 31 October 2022).
Conversion of fuel consumption into energy expressed in GJ was conducted with the employment of heating values published in the KOBIZE document "Heating Values and CO2 Emission Factors in 2016 for
reporting under the Emission Trading Scheme for 2020” and the analogous document for reporting emissions for 2022.
Data regarding business trips are obtained from the internal records of the Bank.
Emissions calculations were prepared in accordance with the following standards: The Greenhouse Gas Protocol A Corporate Accounting and Reporting Standard Revised Edition, GHG Protocol Scope 2
Guidance, and Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
The greenhouse gases identified and included in the calculations were CO2, CH4 and N2O, which were expressed as CO2 equivalents. No biogenic CO2 emissions were identified.
The reference point for reduction targets are the 2019 emissions, which was the first year when the new approach to calculating GHG emissions was adopted.
The sources of emission factors were publications of KOBIZE (National Balancing and Emission Management Centre), the Energy Regulatory Office and the DEFRA (Department for Environment, Food and
Rural Affairs, UK Government) database.
The 'refrigerants' category includes R410A and R32 in 2020 and R410A and R422D in 2021 as reported to the CRO (Central Register of Operators) and converted according to GWP (Global Warming
Potential).
As a criterion for the consolidation of emission volumes for the Capital Group, a financial control criterion was adopted, which means that 100% of the company's emissions were attributed to the Group
In 2021, emissions from fuel combustion by the fleet and subsidiaries' business trips were included for the first time. This change has no significant bearing on the result.
Emissions caused by electricity production were calculated using the market-based method. For the energy mix, an average indicator for Poland was used due to the lack of information about individual
energy suppliers at particular locations; for energy from renewable sources with guarantees of origin, an indicator of 0 kg CO2E/kWh was used.
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Sustainable IT initiatives
One of the key objectives of GObeyond Bank's business strategy is to reduce CO
2
emissions from operations. We also take
into account the reduction of the CO
2
footprint associated with digital channels, marketing activities, communications and
IT processes.
Table 16. Energy and fuel-related emissions not included in Scope 1 and 2 (upstream)
2022
Emissions resulting from the use of the Data Centre
(tonnes of CO
2
)
948
Method of presenting indicators:
The value represents the emissions resulting from the production of the electricity used.
The energy consumption information is derived from the submitted invoice data from the supplier under the "IT Equipment Co-location Service Agreement".
The emission factor published by the energy vendor was used in the calculation. Due to the lack of publication of the current emission factor for 2022 (the factor will be published at the end of March
2023), the 2021 emission factor has been used for the calculation.
Electricity covered by RES Guarantees of Origin, according to the standard, is zero-emission.
The calculation excludes WTT emissions, i.e. emissions related to the production of energy lost during transmission and resulting from the production of fuels used to generate electricity
The GO Cloud initiative, as part of the IT@Scale strategy, has environmental objectives in addition to the Bank's
technological transformation:
moving part of our IT ecosystem to the cloud and partnering with suppliers that have zero carbon footprint data centres
(certified by renewable energy certificates) will allow us to reduce our carbon footprint in the energy supply chain for
hardware by 20%,
upgrading, consolidating and virtualising equipment in the Data Centre (which in 2022 translated into 25% energy
savings),
Shifting our equipment management to a circular economy approach. We want to track the life cycle of our equipment to
reduce the amount of waste generated during the equipment life cycle (e.g. reuse of IT equipment). In 2022, employees
bought back more than 600 pieces of IT equipment (mobile phones, laptops, PCs, monitors) as part of the implemented
policy. We also donated more than 200 pieces of IT equipment (monitors, PCs, laptops, printers) to public benefit units,
Definition of environmental criteria for IT purchases - in the tendering procedures for New Technologies and IT Support,
energy consumption criteria were introduced into the qualitative elements of the evaluation, e.g. in the procedure for disk
arrays, the weight of the indicator in the area of energy demand (power and cooling) was 10%,
IT, equipment that is unusable is transferred to a specialised company for disposal. In 2022, we handed over 6,500 pieces
of IT equipment to Elektrozlom.pl,
use of certified and recycled paper for the Bank's printing equipment and mass mailings
Car fleet
We increased the number of ecologically powered cars by another 200. Currently, our eco-fleet consists of 606 cars,
including 592 hybrid cars and 10 fully electric cars.
Table 17. The Bank's car fleet
Number of cars
Percentage
Petrol
620
45%
Diesel
160
11%
Electric
10
1%
Hybrid
596
43%
Total
1,386
100%
Electric cars will be increasingly popular – both at the Bank and among our Customers. Therefore, our head offices in
Warsaw, Krakow and Ruda Śląska are equipped with electric chargers. In total, we have 12 chargers capable of charging 22
cars at the same time. In 2023, we want to install 9 more stations with 16 charging points.
In 2022, we adopted the Fleet Electrification Policy, according to which the Bank's entire car fleet will be replaced with
electric or hybrid cars. We also conducted the first Electric Safe Driving Academy in the history of our Bank. Guided by
experienced instructors, our employees could learn how to safely drive electric cars. The Bank also received the "Company
most involved in driver education" award from the Polish Vehicle Rental and Leasing Association.
Other initiatives for electro-mobility:
We celebrate Car-Free Day, which is an opportunity to promote ecological means of transport.
We promote the carsharing service as an equivalent of a company car for employees.
We implement the Bicycle to Work campaign, which provides employees with guarded bicycle parking lots and showers at
the Bank's head offices. We have also provided our employees and Customers with access to bicycle racks in front of most
branches.
Energy
[302-4]
Selected Bank initiatives related to reducing the consumption of energy and natural resources (water, gas):
LED lighting in outdoor signage,
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opportunities
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replacement of lighting with LED lamps in 90% of Customer centres,
successive replacement of capacitive water heaters in facilities without access to hot water from the water supply
network,
photovoltaic installations in 10 facilities,
a pilot eco-branch (EKO-BRANCH initiative) with an HVAC management system and eco-lighting,
pilot miniBMS installations to manage HVAC and lighting installations in branches,
optimisation of BMS settings in central locations.
[302-1]
Table 18. Energy consumption (own production or purchased) in the Group
Group
2019
2020
2021
2022
Energy type
MWh
GJ
MWh
GJ
MWh
GJ
MWh
GJ
Purchased thermal energy,
including:
-
54,025
37,509
-
53,594
-
44,201
Heat from RES
-
75
62
-
2,108
-
2546
Purchased electricity, including:
27,601
99,364
22,878
82,362
21,672
78,020
19,052
68,587
Electricity from RES
with guarantees of
origin
16,620
59,832
22,878
82,362
21,672
78,020
19,052
68,587
under contract with Respect
Energy (from 2021)
13,242
47,671
15,046
54,166
other guarantees of origin
8,429
30,344
4,006
14,422
Total
-
153,389
-
119,871
-
131,614
-
112,788
Non-renewable sources
93,482
37,447
51,486
51,655
Renewable sources
59,907
82,424
80,128
71,133
Implementation of the GObeyond strategic goal (2022-2025)
2025 goal
Base year 2019
2022
2022 vs 2019
Reduction of electricity
consumption - 35%
153,389
112,788
-27%
Table 19. Energy consumption (own production or purchased) at the Bank
Group
2019
2020
2021
2022
Energy type
MWh
GJ
MWh
GJ
MWh
GJ
MWh
GJ
Purchased thermal energy,
including:
-
53,547
-
37,170
-
52,982
-
43,143
Heat from RES
-
75
-
62
-
2,005
-
2,546
Purchased electricity, including:
27,295
98,262
22,651
81,543
21,385
76,985
18,562
66,823
Electricity from RES with
guarantees of origin
16,620
59,832
22,651
81,543
21,385
76,985
18,562
66,823
under contract with Respect
Energy (from 2021)
13,064
47,030
14,881
53,572
other guarantees of origin
8,320
29,952
3,681
13,251
Total
-
151,809
118,713
129,967
-
109,966
Non-renewable sources
91,902
37,108
50,977
40,597
Renewable sources
59,907
81,605
78,990
69,369
Method of presenting indicators:
The environmental data for the Bank and the Group are similar because the activities of subsidiaries are carried out in facilities rented by the Bank (except Campus Leszno Sp. z o.o.),
Consumption data are obtained based on invoices from suppliers of individual utilities. In the absence of source data, they are estimated based on analogous locations where source data is available.
The Bank has adopted reporting periods consistent with those applied by the BNP Paribas Group. Data on energy consumption and emissions cover the period from 1 November to 31 October of a given
year (in this Report it is the period from 1 November 2021 to 31 October 2022).
Conversion of fuel consumption into energy expressed in GJ was conducted with the employment of heating values published in the KOBIZE document "Heating Values and CO2 Emission Factors in 2016 for
reporting under the Emission Trading Scheme for 2020" and the analogous document for reporting emissions for 2022.
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opportunities
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Fuel consumption in the Group in 2022
The increase in the Group's fuel consumption in 2022 is a result of an increase in business travel and the need for
increased gas use at the subsidiary Campus Leszno (accommodation for refugees from Ukraine). A relevant explanation is
provided in the chapter 'Reducing carbon footprint'.
Fuel type
2021
2022
consumption
[GJ]
consumption
[GJ]
Petrol
1,278,866 litres
42,774
1,491,606 litres
49,889
Natural gas
556,619 m
3
20,339
1,066,521 m3
38,992
Diesel
372,711 litres
13,462
335,429 litres
12,116
Heating oil
12,934 litres
446
2,000 litres
69
Total
-
77,021
-
101,066
Method of presenting indicators:
The consumption of fuels in the Bank and the Group is identical because the activities of subsidiaries are carried out in facilities belonging to the Bank (except Campus Leszno Sp. z o.o.),
Consumption data are obtained based on invoices from suppliers of individual utilities. In the absence of source data, they are estimated based on analogous locations where source data is available.
The Bank has adopted reporting periods consistent with those applied by the BNP Paribas Group. Data on energy consumption and emissions cover the period from 1 November to 31 October of a given
year (in this Report it is the period from 1 November 2021 to 31 October 2022).
Conversion of fuel consumption into energy expressed in GJ was conducted with the employment of heating values published in the KOBIZE document "Heating Values and CO
2
Emission Factors in 2016 for
reporting under the Emission Trading Scheme for 2020" and the analogous document for reporting emissions for 2022.
Table 20. Total energy consumption at the Group
[GJ]
Energy consumption (own production or purchased)
112,788
Fuel consumption
101,066
Total, including
213,854
Non-renewable sources
142,721
Renewable sources
71,133
Water
[303-3]
Water used in the Bank comes from water supply networks and is discharged into sewage systems after use. Our needs are
limited to household purposes (food and hygiene), so the scale of consumption does not generate a significant negative
environmental impact. Nevertheless, for a number of years, we have consistently been implementing solutions that reduce
water consumption. We have installed e.g. aerators in water taps, as well as motion sensors and electronic washing
programmes that significantly reduce water consumption in the Bank. The increased popularity of remote and hybrid work
has also affected the reduction of water consumption.
In 2022, we changed the approach to cleaning company cars by implementing an innovative programme of hand car-wash
services. Already during the test phase, it saved 253,000 litres of water and reduced CO
2
emissions by up to 2.9 tons.
Table 21. Water consumption in the Group
Group
2019
2020
2021
2022
Water consumption (m
3
)
81,222
59,754
49,353
47,523
Table 22. Water consumption at the Bank
Bank
2019
2020
2021
2022
Water consumption (m
3
)
79,015
57,642
47,260
44,751
Method of presenting indicators:
The Bank has adopted reporting periods consistent with those applied by the BNP Paribas Group. Data on energy consumption and emissions cover the period from 1 November to 31 October of a given
year (in this Report it is the period from 1 November 2021 to 31 October 2022).
Materials and waste
Minimising plastic consumption
Chosen Bank initiatives to reduce plastic consumption:
In 2019, we decided not to order disposable plastic accessories or plastic water bottles.
We use water dispensers, carafes and glasses.
In canteens, we promote the use of private containers and use biodegradable or compostable cutlery and packaging.
We minimise plastic packaging in vending machines at our branches.
We have significantly reduced the production of marketing gadgets. We use the available resources. Whenever we decide
to produce new marketing gadgets, we cooperate with suppliers to create useful items rather than mere brand carriers.
We reuse old promotional materials – e.g. roll-ups are recycled into bags, placards and other accessories.
We use ecological foil for advertisements in the windows of our branches – it is PVC-free and does not contain chemicals
harmful to the environment. Old foil is recycled.
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Minimising paper consumption
Chosen Bank initiatives to reduce paper consumption:
We cooperate with suppliers to ensure that all mass correspondence to our Customers as well as marketing materials are
printed on certified, recycled paper.
At the Bank's headquarters, we use eco-friendly paper with a reduced grammage.
We limit the printing of electronic correspondence and encourage Customers to use digital documents (e-
correspondence).
Every year we digitise more and more processes.
We use the Autenti platform for electronic contract signing and digital document circulation.
By using the Autenti platform, we signed 643,000 documents electronically (paperless) in 2022 (5% more than last year),
which is approximately 1.4 million sheets of paper saved.
Table 23. Purchase of paper in the Group and the Bank in 2022
Group
Bank
Paper purchase (in tonnes)
247.62
238.02
share of certified and recycled paper
96.5%
96.6%
Table 24. Purchase of paper at the Bank in 2019-2022 (in tonnes)
2019
2020
2021
2022
2022 vs 2019
Paper used for internal
operations
233.44
178.85
126.44
122.42
-48%
Paper used for marketing
purposes
107.79
52.74
60.67
42.49
-61%
mass correspondence
70.50
128.16
114.42
70.50
0%
Other
27.58
9.56
1.96
2.61
-91%
Paper purchase (in tonnes)
439.31
369.30
303.49
238.02
-46%
Waste segregation
In 2021, waste was segregated in 42% of the Bank's locations, in 2022 this ratio increased to 85%. Waste is sorted in all of
the Bank's Head Offices and 359 Customer and business centres.
Waste segregation initiatives:
Coffee grounds recycling - as of 1 August 2022, we have started a pilot collaboration with EcoBean, a startup that recycles
coffee grounds into reusable products: straws, cups or pots. The pilot involves collecting coffee grounds from coffee
machines at the Bank's headquarters at 2 Kasprzaka Street in Warsaw,
automatic segregation at the Bank's headquarters - the Bin-e is an intelligent waste container that automatically
recognises, segregates and compresses waste
segregation of electro-waste - containers in the Bank's head offices for batteries, light bulbs, caps, small electrical
appliances,
handing over 1,800 pieces of office furniture in partnership with charitable institutions.
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prospects
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execution
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opportunities
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 87
Pillar STRONGER
Pillar description
Dynamic and, primarily, effective growth will not be achieved without the improvement of internal processes and large-
scale transformation of the IT area, using modern IT technologies such as cloud computing and open banking. The Bank
plans to invest a total of around PLN 1.5 billion in technological improvements to support business growth and double the
pace of implementation of new solutions. A fundamental change in the technologies used by the Bank will enable the
scaling of the business, as fast and cost-effective scalability is the foundation of a modern digital bank and enables it to go
beyond traditional banking services.
The Bank will introduce a new operating model focused on quality and optimise all 38 key end-to-end processes. As at the
time of publication of the strategy, the optimisation of nine of these has already begun. This will make use of process
mining tools, robotic process automation (RPA) and artificial intelligence.
The Bank will also increase the use of the potential of its data. Advanced analytical tools using modern technologies such
as cloud computing, big data and artificial intelligence in decision-making processes will support business development,
increase the quality of service and the efficiency of operations.
The basic assumption of the strategy is to maintain a safe and optimal capital and liquidity position and to meet minimum
regulatory requirements. The Bank's intention is to start paying dividends during the current strategy, with the payout level
reaching 50% of net profit in 2025.
Strategic commitments and their implementation
Indicator
2025 strategic goal 2025
2022 execution
Total investment in technology by 2025
PLN 1.5 billion
PLN 350 million
Optimisation of all key end-to-end processes
38 processes
19
Increase in efficiency of operations [vs 2021]
>10% per year
+23%
Number of use cases using artificial intelligence or
advanced data analytics
>200
58
Digitisation and innovation - IT strategy
Implementation of the IT Strategy
In 2022, the Bank launched its GO Beyond strategy with the goal of becoming the digital bank of the future; it launched
extensive activities in the technology area, formulating them into strategic actions called IT@Scale.
These activities have been grouped into eleven initiatives, the leading one being the GO Core initiative modernising the
central system environment, which is the hub of the enterprise architecture, providing services to the entire bank in a 24/7
working model. A comprehensive approach has been applied, taking into account the fact that the environment consists of
many integrated elements. Hence, as part of the GO Core initiative, not only was the modernisation of the central system
initiated, but also the target architecture of the payment system, the target architecture of the Customer data platform and
the delivery of the PoC (Proof of Concept - pilot solution) of the product platform - the repository of all active individual
and corporate Customer loans.
The IT@Scale strategy addresses both strictly infrastructural and process areas, as well as issues related to the
development of employee competencies and the acquisition of IT experts from the demanding external market. All activities
are subordinated to the idea of partnership between IT and business units in the model of agile activities, addressing
flexible product development and modern, multi-channel Customer service.
Implementation of IT@ Scale strategy in 2022
INITIATIVE
Deep transformation of the core banking ecosystem (GOcore)
INITIATIVE
DESCRIPTION
The transformation of the core banking ecosystem is a comprehensive redesign of the Bank's application
architecture in terms of the central system and the directly related systems. The aim of the
transformation is to reduce time-to-market, increase the efficiency of IT solutions and reduce operational
risk by:
implementing IT platforms - scalable and re-usable across business domains (in terms of payments,
products and Customer data)
reducing business logic and dependencies between the central system and other IT systems
ACHIEVEMENTS
development of a target architecture for the payment and Customer data platform, together with the
design of an MVP - the first functional scope to be implemented in the following year
introduction of a number of improvements and optimisations to the core system's operations, including,
among others, a new front-end for users automating operations, enabling the offering of instant
transfers and BLIK P2P operations, and making branch opening hours independent of core system
processing
KEY FIGURES
30% reduction in day and month processing in the central system automatic processing and control in
KYC processes at level 37
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opportunities
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INITIATIVE
Increasing the maturity of management processes and IT services (Hyperautomation)
INITIATIVE
DESCRIPTION
Increasing the maturity of management processes and IT services, through optimisation, standardisation
and automation
ACHIEVEMENTS
standardisation and automation of incident and problem management processes using the advanced
Service Now tool
extending system availability management processes to ensure fault-free operation, based on the top-
of-the-line Dynatrace solution
automation of regression testing for mobile and online banking
INITIATIVE
Data platform development (GOdata)
INITIATIVE
DESCRIPTION
Enhancing and implementing data solutions to create a scalable and secure cloud-ready platform,
providing consistent and integrated data and providing analytical capabilities available to the whole
Bank
ACHIEVEMENTS
construction of a Disaster Recovery solution guaranteeing the protection of central system data in case
of failure. The solution relies on a new generation database platform - Oracle Exadata
INITIATIVE
Building digital competences (Engineering Culture)
INITIATIVE
DESCRIPTION
Building the Bank's digital competencies through innovative reskilling and upskilling programmes and
promoting awareness of new trends and technologies
ACHIEVEMENTS
conducting an innovative "I can do IT" reskilling programme dedicated to employees aged 50+, enabling
them to start a new career path in new technologies, in the role of manual tester.
building an upskilling programme on new technologies - UniversITy, with in-house IT experts as
trainers.
organising two technology events for the Bank's employees - "GOtech Week", during which the most
relevant trends in the new technology market are discussed
extensive presence of the Bank at the most important technological events on the Polish and European
market - Code Europe, Confidence, InfoShare, Confitura, The Hack Summit
KEY NUMBERS
approx. 20% of the Bank's employees built digital competences in the first two editions of the UniversITy
Programme
100% of participants in the IT can do IT programme have obtained the international certificate
confirming tester competences - ISTQB
INITIATIVE
Cloud transformation (GoCloud)
INITIATIVE
DESCRIPTION
Building and consistently implementing a hybrid-multicloud environment based on leveraging the
benefits of the private and public cloud to ensure scalability of IT services and access to the latest tools
and technologies
ACHIEVEMENTS
developing the foundations for public cloud adoption, by building a Google Cloud Landing Zone
configuration
development of private cloud solutions (including Service Now)
Online and mobile banking
In 2022, the Bank continued the intensive development of remote channels, implementing a number of functionalities
aimed at strengthening its competitive position, reducing the cost of providing services and increasing the quality of
Customer service while ensuring the highest security standards.
In addition, in view of the dynamic political and economic situation, the Bank's activities in the area of online and mobile
banking also focused on maximising the support of Customers in remote access to banking services and products.
The Bank has consistently introduced further self-service processes to its e-banking offerings, so that Customers can meet
their most important needs on a daily basis without having to visit a branch - from applying for additional products to
after-sales service - from any device and at their convenience.
Key changes in systems and offerings for retail Customers in 2022
Payments
Extension of Express Elixir transfers to 24/7 service
BLIK mobile money transfer
Foreign transfer in GOmobile
Tax transfer in GOmobile
Charity transfer (help Ukraine, Noble Gift)
Loans and cards
Presentation of information on loans at the end of the repayment period
Possibility of terminating a credit card
Repayment of the card and instalments using BLIK
Implementation of credit holiday service
Complete repayment and overpayment of cash and instalment loans in GOmobile
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opportunities
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information
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Key changes in systems and offerings for retail Customers in 2022
Investments and savings
New layout of the "investments" tab, which will make it easier for Customers to handle investments
Deposit for new funds
Retention deposit
Polish Development Fund Financial Shield
Enabling a subsidy-related applications under Shield 2.0. for Micro Customers in GOonline
Customer details / Customer
UX changes for GOmobile application activation
Darkmode for GOmobile application
Identity verification during a Call Centre call via GOmobile
Application 400+ - family care capital
Adaptation of 500+/300+ applications to new requirements (also for Ukrainian Customers)
Integration with beWealth application for Wealth Management Clients
Password reset for non-residents
Balance after transfer in transaction history
Accounts and cards
Account aggregator - providing the ability to view balance and transaction history from accounts at other banks
Promotion "mamBilet" and streamlining of account opening under the promotion via GOmobile
Account for Ukrainian citizens
Virtual card in the account opening process for new Customers
Security
Behavioural analysis - additional advanced anti-fraud security analysing how the Customer behaves on GOonline, which notifies
IT Security in case of deviation
Implementation and promotion of a mobile token
Trusteer - promotion of plug-in installation
Messages from niebiezpiecznik.pl
The basis for building development plans in the area of online and mobile banking is the Customers' voice. Regular
feedback, e.g. through a Customer satisfaction survey, makes it possible to more efficiently identify the advantages and
disadvantages of the services offered and to better understand individual Customer needs.
Customer security is a fundamental element of the Bank's e-banking development strategy, which is why the GOonline
system has been enhanced with additional mechanisms to prevent the possible consequences of unauthorised access and
campaigns promoting modern authorisation methods and responsible use of remote channels.
Table 25. Retail Customers' data
specification
system name
31.12.2022
31.12.2021
Number of Customers/users using online banking
GOonline
743,151
790,012
Average number of transactions per month in the
Internet channel
GOonline
3,123,013
3,378,491
Number of Customers / users using the mobile
application (GOmobile)
GOmobile
1,094,963
911,142
Number of Customers / users using mobile
banking (mobile device)
GOmobile + GOonline
1,232,702
1,078,048
Number of Customers / users using only the
mobile application (GOmobile)
GOmobile
742,348
591,801
Number of Customers/users using only mobile
banking (mobile device)
GOmobile + GOonline
861,686
708,876
Key changes in systems and offerings for business Customers in 2022
January 2022 - transfer of the Applications module from the old version of the system (BiznesPl@net) to the new version of
GOonline Business Applications and instructions
April 2022 - closing the "old" Applications module in BiznesPl@net and making the new cash handling applications available
October 2022 - pilot launch of new modules Payments/Contractors and Statements in GOonline Business
December 2022 - adjusting the system to make the new Deposits module available to all GOonline Biznes Customers in January
2023
Table 26. Corporate and SME Customer data
specification
system name
31.12.2022
31.12.2021
Number of Customers actively logging on
GOonline Biznes
142,637
145,194
Average number of transactions per month
GOonline Biznes
6,405,991
5,999,966
Number of Customers/mobile application users
GOmobile Biznes
23,086
17,034
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Strategy and
prospects
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execution
Risks and
opportunities
Corporate
governance
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 90
Bank cards
In terms of issuing and processing payment cards, BNP Paribas Bank Polska S.A. cooperates with Mastercard and Visa. The
card portfolio includes debit cards, credit cards and deferred payment cards.
As at 31 December 2022, the number of cards issued amounted to 2,561,500, which was 13,900 more than in the same
period last year. The recorded increase in debit cards is mainly due to the Bank's very popular offer:
My Premium Account opening with a dedicated My Premium Card or Multivalue Card,
Konto Otwarte na Ciebie (Account Open for You) with the possibility of issuing 4 cards (Karta Otwarta na Dzisiaj (Open
Card for Today), Karta Otwarta na eŚwiat (Open Card for the World) and Multi-Currency Card,
Family Banking offer - Karta do Dorosłości (Adult Card) issued to persons aged 13-18, Karta Samodzielniaka (Self-
dependent Card) and Microcard Samodzielniaka (Micro self-dependent Card) issued to children aged 7-13.
Within My Premium Account and Open Account for You, in addition to the physical version of the card, a mobile card can
also be obtained. In addition, a very large group of Ukrainian Customers took advantage of the Bank's offer in 2022.
Table 27. Number of bank cards issued by the Bank
thousands of pieces
31.12.2022
31.12.2021
change y/y
thousands of pieces
%
Retail Customers' debit cards
1,654.3
1,538.2
116.1
7.5%
Retail Customers' credit cards
691.8
800.2
(108.4)
(13.5%)
Business debit cards
202.6
196.0
6.6
3.4%
Deferred payment business cards
8.0
7.7
0.3
3.9%
Business credit cards
4.8
5.5
(0.7)
(12.7%)
Total
2,561.5
2,547.6
13.9
0.5%
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Strategy and
prospects
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execution
Risks and
opportunities
Corporate
governance
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 91
Supporting innovation
[3-3] [Digitisation of banking services and products], [Offering innovative banking services and products]
An Open Innovations Bureau operates in the Bank. It supports product development and increasing innovation and
technological sophistication.
The team's main tasks are:
support the Bank's units in sourcing and testing innovative solutions from startups and scaleups,
assessing the potential and feasibility of implementing the innovations presented,
identifying new business models,
educating and inspiring Bank units on innovative solutions,
implementing and banking for innovative companies.
The Open Innovations Bureau collaborates with all the Bank's units and with the New Technology and Cyber Security Area.
Together, they develop new products and promote the spirit of innovation. The team looks for interesting solutions, follows
market trends and then proposes interesting processes and products to the Bank.
To ensure that new products and services respond to the challenges of environmental and social sustainability - the Open
Innovations Bureau works closely with the Sustainability Area and the Sustainability Community.
The Bureau’s team has developed an Office Hours process for the Bank (a proprietary process for sourcing and adapting
innovations), which from 2019, significantly simplifies internal procedures and increases the Bank's chances of sourcing
cutting-edge technological solutions. The Bank is constantly evolving to establish business relationships with innovative
young companies.
More information can be found at: https://www.bnpparibas.pl/innowacje/wdrazamy.
The 2022 subsequent editions of Office Hours (more than 20 are behind us now) have taken place. As part of the latest
edition of Office Hours (OH), the Bank looked for solutions to support our corporate Clients in calculating (scope 1 and 2,
eventually also scope 3) and reducing their carbon footprint. During the OH, experts from the Bank looked at thirty
innovative solutions from Poland and abroad, at different stages of development. The best performer at the first stage of
the discussions was Polish startup Envirly, whose solution will be tested on a selected group of the Bank's Customers in
early 2023.
Startup developments with positive impact in 2022
Collaboration with Bine-e start-up
Implementation of a smart waste bin from Bin-e at the Bank's Head Office at Kasparza Street no. 2 in Warsaw. Bin-e's
solution is an AI-based smart waste bin for public places to simplify recycling. It automatically sorts and compresses waste,
monitors fill levels and processes data for convenient waste management. More information can be found at:
https://www.bine.world/
Collaboration with EcoBean start-up
As of 1 August 2022, we have started a pilot collaboration with EcoBean, a startup that recycles coffee grounds into
reusable products: straws, cups or pots. The pilot includes the collection of coffee grounds from coffee machines at the
Bank's headquarters at Kasprzaka Street no.2 in Warsaw. More information can be found at: https://ecobean.pl/
Initiatives to promote innovation
Positive Impact Ecosystem
The Bank has been co-developing the "Positive Impact Ecosystem" project with the Kozminski Business Hub for years. In
2022, the Kozminski Business Hub published another report "Positive Impact Startups. Radical Social Innovation", of which
we again became a partner.
The project identified 21 of the most innovative startups working towards the UN Sustainable Development Goals. These
are companies and organisations that respond to social and environmental challenges and provide a high level of
organisational integrity and efficiency. More information can be found at: https://kozminskihub.com/raport-startupy-
pozytywnego-wplywu/
Workshops on innovative business models
As part of its activities to promote innovation, the Open Innovations Bureau's team also organised three workshops on
innovative business models for selected risk teams. More than 40 people took part in the trainings. These trainings were
conducted by Agnieszka Lewandowska, a recognised trainer and consultant in Lean Startup and Business Model Canvas
methods. Thanks to these meetings, it was possible to develop knowledge in the field of business models among people in
contact with startups, which will allow them to gain a deeper understanding of the differences between standard
companies and startups.
Partnerships
In 2022, the Open Innovations Bureau intensively established new partnerships and continued previously started
collaborations, making the Bank one of the most recognised financial institutions in the startup ecosystem, which
translates into attracting potential prospects among technology companies.
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prospects
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execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 92
Partnership
Description
Startup Poland
The Bank became the main partner of the Polish Startups 2022 report - the most
prestigious report examining the standards of startups in Poland. Thanks to this
partnership, specialists from the Open Innovation Bureau took part in a number of
supporting activities.
Fintech Poland
In 2022, we joined the Think Tank Fintech Poland partners, dedicated to spreading
knowledge about fintech in Poland, which also undertakes a number of networking and
development initiatives for the industry.
Deep Tech
Summit
Conference organised for the first time in 2022, of which we were the main partner. The
conference is the first one that focused on the topic of high-tech growth companies. The
conference attracted more than 300 people, including academics, entrepreneurs and
investors.
infoShare
The largest technology and business conference in Central Europe. The Bank once again
joined the ranks of the most important partners of this conference. Our representatives led
three speeches and were on the jury of the startup competition, where the main prize was
EUR 25,000. The conference was attended by more than 6,000 people.
New financial services
In 2022 the Open Innovations Bureau also launched a financial service aimed at innovative technology companies. By
developing a specialised credit policy, it was possible to offer different types of financing to young, fast-growing technology
companies. Despite the short time the product has been offered, more than a dozen loan agreements have been signed and
dozens of new accounts have been opened, with a list of potential Customers including more than 100 companies.
As part of the development of banking services for innovative companies, we focus on building long-term relationships -
both with innovative companies and their investors.
Cybersecurity
The Bank continued its activities aimed at increasing the level of cybersecurity and building awareness of cyber threats and
solutions among employees and Customers. Among the activities carried out were webinars and e-learning training for
employees and awareness campaigns for Customers implemented through the Bank's website and as social media.
Following the outbreak of war in Ukraine, the Bank implemented additional cyber security solutions and increased
monitoring of ICT infrastructure.
Implementation of the Strategy in 2022
INITIATIVE
Secure Tomorrow
INITIATIVE
DESCRIPTION
Strengthening the cyber security
ACHIEVEMENTS
construction of CyberBunker - a solution to protect critical applications from cyber-attacks by
creating isolated copies of data
launch of a Security Operations Center monitoring the Bank's cyber security 24/7
securing digital channels (GOonline, GOmobile) against volumetric attacks
increasing the security of the software development process - using dedicated application security
tools
automation of security tests of IT infrastructure - acceleration of identification and reaction to
threats in the area of known security vulnerabilities
increasing the security level of the central system through the introduction of a system of
automatic security audits of the configuration and monitoring of rights changes
KEY NUMBERS
achieving Moody's "BitSight" security rating of 810
Our work on cyber security has been recognised by external bodies, as evidenced by the awards and certifications we have
received:
distinction for BNP Paribas Bank Polska within the 13th edition of the Golden Banker ranking for good practices regarding
the security of electronic banking systems;
distinction within the 20th edition of the Gazeta Bankowa Monthly's Technology Competition Leader of the Year 2021 in
the Banking category for the implementation of 2FA by Secfense - the Shortest Path to Zero Trust Security;
recertification of the ISO27001 standard and receipt of ISO22301 (Business Continuity Management) certification;
positive assessments from audits by the FSA and the BNP Group internal audit.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 93
Pillar TOGETHER
Pillar description
The bank is convinced that an engaged and satisfied employee guarantees a high level of Customer satisfaction. Therefore,
it will be crucial to provide an environment that supports the development of employees, their activity and creativity, but
also accepts mistakes resulting from testing bold, non-standard solutions. To this end, since the middle of last year, the
Bank has been promoting values (Transparency, Simplicity, Courage, Collaboration, Empowerment) among its employees,
the application of which in our daily work will enable us to respond dynamically to changing market conditions and
contribute to the effective realisation of our strategic ambitions.
To ensure a more flexible operation and better alignment of products and services with Customers' expectations, the Bank
started operating under a new working model, known as Agile@Scale, from the beginning of 2022. This is a modern, agile
way of operating with a high level of employee autonomy and decision-making. The number of permanent employees
working in this format will be maintained above 1,300.
Strategic commitments and their implementation
Indicator
2025 strategic goal
execution 2022
Participation of women on the Bank's Management
Board [vs 2021: 22%]
30%
22%
Reducing the pay gap between women and men [vs
2021: 7.3%]
<4,0%
6.5%
eNPS - Net Promoter Score of employees [vs 2021:
-9]
20
18
People working within Agile@Scale
>1 300
~1,400
Good place to work
[3-3] [A friendly workplace, responsible employment management]
Agile@Scale – new operational model
In July 2020, the Bank's Management Board decided to launch an Agile@Scale transformation, which is operational from 1
January 2022. The Agile@Scale transformation covers the part of the organisation responsible for product development
and implementation (business, IT, support roles). The bank is now organised around products responsible for end-to-end
IT processes and systems.
The new Agile@Scale operating model was implemented in January 2022 and approximately 1,300 people were covered.
The implementation of Agile@Scale required a transformation of the organisational structure resulting in the creation of
new units of 16 Tribes, five IT areas, 54 Products and 56 Chapters. In 2022, we have started to test a model that goes
beyond agile in Retail distribution network and in HQ. The pilot involves around 100 FTEs and will be continued in 2023.
By implementing the Agile approach, the Bank aims to achieve the following objectives:
FASTER - by responding more quickly to changing Customer needs and market conditions, as measured by the change in
the Time to Market index, which shows how quickly we are able to implement new solutions
BETTER - by providing innovative, high-quality products and services based on Customer needs, as measured by the
change in the NPS indicator, which shows how Customers recommend the bank:
- Retail and Business Banking and Personal Finance (Group benchmark) from 9th (2021 base) to 7th place in the market
in 2022,
- Small and Medium Business Banking (Group benchmark) from 7th (2021 base) to 6th in the market in 2022,
- Corporate Banking (local bank survey) from 23.1 (2021 base) to 27.0 in 2022.
HAPPIER - by engaging employees, improving their competences and attracting and retaining talent. The Pulse Check
employee survey shows significant improvements at bank level for almost all metrics, and Agile@Scale contributes to
this. In particular, the eNPS has improved from -9 to 18; the engagement rate from 63 to 77%.
GObeyond's strategy for 2022-2025 is implemented in the Agile@Scale operating model using new methods for setting and
tracking OKR (Objectives and Key Results) targets. Cross-cutting initiatives are coordinated by Tribes in strategic areas. For
example, the Bank is developing its ecosystem (Open Banking Tribe, fast buying process, specific banking offering) to
become the main bank of innovative companies in Poland.
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About us
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execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 94
In 2022, the main focus was the maturity of the Agile@Scale target operating model. Stakeholder feedback was
continuously collected and maturity assessments were conducted at the level of each Tribe unit. Several obstacles were
identified as a result of these assessments. In 2023, we plan to focus on eliminating the top ten obstacles and extension of
Agile@Scale to IT operations for IT.
Employees relations
We want to build an organisation that is an exceptional place to work, one that provides a high standard of leadership and
where employees are aligned around the organisation's core competencies and values. While attracting the best
candidates from the market, we also nurture motivation and performance among existing employees. We develop
leadership and future competences among our employees, enabling them to find their way and continuously develop in
digital and changing times.
The most important documents formally defining the Bank's personnel policy are:
Company Collective Labour Agreement for Employees of BNP Paribas Bank Polska S.A. (in 2022, 99% of employees were
covered by it),
Employee remuneration policy of BNP Paribas Bank Polska S.A.,
Regulations of work at BNP Paribas Bank Polska S.A.,
Remuneration Policy for persons with significant influence on the risk profile of BNP Paribas Bank Polska S.A.
[402-1]
Projects and initiatives implemented in the area of human resources management are monitored through cyclical reviews
with the area's management team, all projects having their indicators monitored. In addition, key projects in the area of
human resources management are presented and discussed by our Bank's Board of Directors on an ongoing basis. We also
employees for feedback on these activities through company-wide surveys and polls. The Bank's employees are informed a
minimum of two weeks in advance of major operational changes that could have a significant impact on them.
To adapt the Bank's business model to the changing business environment, a programme of group redundancies for 2021-
2023 was announced in December 2020 in consultation with the Trade Unions. In addition, in order to mitigate the social
impact of the group redundancies, the Bank agreed with the Trade Unions to pay additional compensation and other
elements of social protection, in addition to the statutory severance payments due to the redundant employees and
launched a Voluntary Redundancy Programme. In 2022, the Group Redundancy Programme and the Voluntary Redundancy
Programme continued.
[2-30]
99% of employees in the Capital Group and the Bank are covered by collective agreements. The application of the
collective agreement was excluded entirely with regard to: employees who are members of the Bank's Management Board,
the Chief Accountant and employees delegated to work abroad, persons taking up employment at the Bank on the basis of
secondments from other BNP Paribas Group entities and employees under management contracts. The working and
employment conditions of these employees are not determined on the basis of other collective agreements. These are
determined by individual agreements.
[2-7]
Method of presentation of indicators: The category "Managerial positions" includes the Bank's Board of Directors, key managers, i.e. MRTs (Material Risk Taker) - people who have a significant impact on
the Bank's risk profile and all other supervisors
Table 28. Number of employees in the Group and the Bank in 2022 (according to employment status as at 31.12.2022)
Capital Group
Bank
Women
5,687
66%
5,578
66%
Men
2,898
34%
2,814
34%
Total
8,585
8,392
8,392
individuals employed by the Bank
53.35%
women at management level in the
Bank
8,585
individuals employed by the Group
53.22%
women at management level
in the Group
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opportunities
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 95
Table 29. Employment structure of the Bank and the Group in 2022 (as at 31.12.2022) compared to 2021. (as at 31.12.2021)
Employment
FTEs number
Active FTEs number
Employees number
Active employees number
2021
2022
2021
2022
2021
2022
2021
2022
Grupa Kapitałowa BNP Paribas Bank Polska S.A. – total
8,667
8,488
7,983
7,975
9,035
8,585
8,088
8,059
BNP Paribas Bank Polska S.A. total, including:
8,504
8,349
7,833
7,839
8,809
8,392
7,880
7,873
Head Office
4,669
4,800
4,397
4,578
4,884
4,836
4,429
4,611
Branches
3,704
3,413
3,309
3,127
3,793
3,420
3,324
3,129
Mobile Advisors
80
94
77
92
80
94
77
92
Brokerage Office
46
37
45
36
47
37
45
36
Trade Unions
5
5
5
5
5
5
5
5
Bankowy Fundusz Nieruchomościowy Actus Sp. z o.o.
0
0
0
0
0
0
0
0
BNP Paribas Towarzystwo Funduszy Inwestycyjnych S.A.
36
38
35
38
37
40
36
39
BNP Paribas Leasing Services Sp. z o.o.
7
8
7
8
24
25
24
25
BNP Paribas Group Service Center S.A.
76
89
69
86
117
124
105
118
Campus Leszno Sp. z o.o.
8
4
7
4
8
4
7
4
BNP Paribas Solutions Sp. z o.o.
36
0
32
0
40
0
36
0
BGZ POLAND ABS1 DAC
0
0
0
0
0
0
0
0
Method of indicators presentation: Data expressed in FTEs have been rounded to the nearest whole unit
Central employees include all employees in the support areas, Trade Unions and the Brokerage Office.
Branch employees include all employees working in the sales network, consisting of: Retail and Business Banking Regions, Corporate and SME Banking Sales Network Division, Consumer Finance Sales Division and Mobile Advisors.
Excluding technical FTEs, in order to avoid double reporting of employees working in companies and technical FTEs in the Bank or vice versa.
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Table 30. Employment structure of the Bank and the Group by region (as at 31.12.2022)
Employees number
Active employees number
FTEs
Active FTEs
Region
Capital Group
Bank
Capital Group
Bank
Capital Group
Bank
Capital Group
Bank
dolnośląskie
318
318
299
299
316
316
298
298
women
232
232
213
213
230
230
212
212
men
86
86
86
86
86
86
86
86
kujawsko-pomorskie
217
217
206
206
217
217
206
206
women
167
167
156
156
167
167
156
156
men
50
50
50
50
50
50
50
50
lubelskie
239
239
217
217
237
237
217
217
Women
180
180
160
160
178
178
160
160
Men
59
59
57
57
59
59
57
57
lubuskie
98
98
89
89
98
98
89
89
women
80
80
72
72
80
80
72
72
men
18
18
17
17
18
18
17
17
łódzkie
228
228
215
215
227
227
215
215
women
162
162
149
149
161
161
149
149
men
66
66
66
66
66
66
66
66
małopolskie
952
951
903
903
950
949
901
901
women
484
483
436
436
483
482
435.2
435
men
468
468
467
467
467
467
465.8
466
mazowieckie
3,824
3,657
3,632
3,468
3,759
3,627
3,573
3,441
women
2,322
2,236
2,146
2,063
2,283
2,221
2,113
2,051
men
1,502
1,421
1,486
1,405
1,476
1,406
1,460
1,390
opolskie
76
74
67
66
75
74
67
66
women
62
60
54
53
61
60
54
53
men
14
14
13
13
14
14
13
13
podkarpackie
166
166
155
155
166
166
155
155
women
134
134
123
123
134
134
123
123
men
32
32
32
32
32
32
32
32
podlaskie
110
110
102
102
110
110
102
102
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Employees number
Active employees number
FTEs
Active FTEs
women
89
89
81
81
89
89
81
81
men
21
21
21
21
21
21
21
21
pomorskie
320
320
293
293
319
319
292
292
women
217
217
190
190
216
216
189
189
men
103
103
103
103
103
103
103
103
śląskie
1,131
1,111
1,043
1,024
1,110
1,109
1,024
1,023
women
872
854
785
768
853
852
768
767
men
259
257
258
256
257
257
256
256
świętokrzyskie
82
81
73
73
82
81
73
73
women
66
65
57
57
66
65
57
57
men
16
16
16
16
16
16
16
16
warmińsko-mazurskie
189
189
178
178
189
189
178
178
women
155
155
144
144
155
155
144
144
men
34
34
34
34
34
34
34
34
wielkopolskie
461
460
425
424
458
457
423
422
women
323
323
287
287
320
320
285
285
men
138
137
138
137
138
137
138
137
zachodniopomorskie
174
173
162
161
174
173
162
161
women
142
141
130
129
142
141
130
129
men
32
32
32
32
32
32
32
32
Method of indicators presentation: Data expressed in FTEs have been rounded to the nearest whole unit
Excluding technical FTEs, in order to avoid double reporting of employees working in companies and technical FTEs in the Bank or vice versa.
Introduction
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Environment
Strategy and
prospects
GObeyond strategy
execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 98
Table 31. Employment by the form of employment - permanent contract in 2022 (as at 31.12.2022)
Employed for an indefinite period
Capital Group
Bank
Total number of employees
7,129
6 960
women
4,763
4 663
men
2,366
2 297
Total number of active employees
6,636
6 474
women
4,286
4 193
men
2,350
2 281
Total FTEs number
7,041
6 922
women
4,700
4 639
men
2,341
2 283
Total active FTEs number
6,560
6 445
women
4,235
4 178
men
2,325
2 267
Method of indicators presentation: Data expressed in FTEs have been rounded to the nearest whole unit
Excluding technical FTEs, in order to avoid double reporting of employees working in companies and technical FTEs in the Bank or vice versa.
Table 32. Employment by the form of employment in 2022 - fixed-term contract (as at 31.12.2022)
Employed on a temporary basis
Capital Group
Bank
Total number of employees
1,456
1,432
women
924
915
men
532
517
Total number of active employees
1,423
1,399
women
897
888
men
526
511
Total FTEs number
1,447
1,426
women
919
911
men
528
515
Total active FTEs number
1,414
1,393
women
892
884
men
522
509
Method of indicators presentation: Data expressed in FTEs have been rounded to the nearest whole unit
Excluding technical FTEs, in order to avoid double reporting of employees working in companies and technical FTEs in the Bank or vice versa.
Table 33. Employment by the form of employment in 2022 (as at 31.12.2022)
Type of employment
Capital Group
Bank
full-time contract
Total number of employees
8,406
8,282
women
5,562
5,502
men
2,844
2,780
Total number of active employees
7,894
7,773
women
5,072
5,015
men
2,822
2,758
Total FTEs number
8,406
8,282
women
5,562
5,502
men
2,844
2,780
Total active FTEs number
7,894
7,773
women
5,072
5,015
men
2,822
2,758
part-time contract
Total number of employees
179
110
women
125
76
men
54
34
Total number of active employees
165
100
women
111
66
men
54
34
Total FTEs number
82
67
women
57
49
men
25
18
Total active FTEs number
80
65
women
55
47
men
25
18
Method of indicators presentation: Data expressed in FTEs have been rounded to the nearest whole unit
Excluding technical FTEs, in order to avoid double reporting of employees working in companies and technical FTEs in the Bank or vice versa.
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execution
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 99
[2-8]
Table 34. Number of co-workers in the Group and in the Bank in 2022 (according to employment status as at 31.12.2022)
Total number of co-workers who are not employees and whose work is controlled by the organisation. Characteristics of
works performed: registration of contracts for the sale of financial products, sale of insurance, completion of
documentation provided by the prospect, verification of documents, etc. office work.
Co-workers
Capital Group
Bank
Contract of mandate
194
169
women
106
95
men
88
74
Contract for specific work
4
2
women
2
2
men
2
0
Internship contract
10
10
women
7
7
men
3
3
Self-employment
217
160
women
72
63
men
145
97
Total
425
341
[401-1]
Table 35. Data illustrating employment turnover in the Group and the Bank in 2022
Capital Group
Bank
Women
Men
Total
%
Women
Men
Total
%
Number of new
employees
948
633
1,581
18.4%
927
608
1,535
18.3%
Number of
employees who left
the organisation
1,114
617
1,731
20.2%
1,094
603
1,697
20.2%
Method of indicators presentation:
The number of people who terminated their employment at the Bank in 2022 (employed under an employment contract) takes into account departures on the initiative of the employee and the employer.
In 2022 the calculation of the turnover rate at the Bank takes into account: in the numerator: persons who terminated their employment at the Bank between 01.01.2022 and 31.12.2022, excluding
technical FTEs,
in the denominator: the number of employees at the Bank - as at 31.12.2022, excluding technical FTEs and inactive employees. The indicator refers to the median annual employment of all employees
excluding technical FTEs
Table 36. Data illustrating turnover in the Bank's employment between 2019 and 2022
2019
2020
2021
2022
Turnover ratio
26.2%
22.9%
19%
20.2%
Method of presentation of indicators:
The number of people who terminated their employment with the Bank in 2022 (employed under an employment contract) takes into account terminations at the initiative of the employee and the
employer.
In the calculation of the turnover rate at the Bank in 2022, the following was taken into account: in the numerator: persons who terminated their employment at the Bank between 01.01.2022 and
31.12.2022, excluding technical posts, in the denominator: the number of persons employed at the Bank - as at 31.12.2022, excluding technical posts and inactive persons
Table 37. Total number of new employees hired in the organisation during the reporting period by age and province
New employees by
Capital Group
Bank
Women
Men
Women
Men
Age
below 30 years old
312
222
301
222
between 30 and 50 years old
598
369
588
349
above 50 years old
38
42
38
37
Region
dolnoślaskie
66
27
66
27
Kujawsko-pomorskie
47
14
47
14
lubelskie
24
9
24
9
lubuskie
12
5
12
5
łódzkie
24
14
24
14
małopolskie
76
86
76
86
mazowieckie
376
329
356
326
opolskie
18
27
18
5
podkarpackie
10
4
10
4
podlaskie
17
3
17
3
pomorskie
61
26
61
26
śląskie
93
37
92
37
świętokrzyskie
16
7
16
7
warmińsko-mazurskie
20
8
20
8
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 100
New employees by
Capital Group
Bank
wielkopolskie
57
23
57
23
zachodniopomorskie
31
14
31
14
Method of indicators presentation:
In 2022, the number of new employees hired in the Bank (employed under a contract of employment).
Table 38. Total number of employees who left the organisation during the reporting period, by age and provinces
Employees who left the organisation
by
Capital Group
Bank
Women
Men
Women
Men
Age
below 30 years old
244
187
242
181
between 30 and 50 years old
814
389
798
381
above 50 years old
56
41
54
41
Region
dolnoślaskie
65
30
65
30
Kujawsko-pomorskie
58
19
58
19
lubelskie
40
14
40
14
lubuskie
20
7
20
7
Employees who left the organisation
by
Capital Group
Bank
łódzkie
38
12
38
12
małopolskie
93
63
92
63
mazowieckie
388
281
370
267
opolskie
22
6
22
6
podkarpackie
20
7
20
7
podlaskie
24
5
24
5
pomorskie
53
42
53
42
śląskie
116
62
115
62
świętokrzyskie
20
6
20
6
warmińsko-mazurskie
34
8
34
8
wielkopolskie
76
43
76
43
zachodniopomorskie
47
12
47
12
Method of indicators presentation:
In 2022, the number of people leaving the Bank (employed under a contract of employment) takes into account departures at the initiative of the employee and the employer.
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 101
Dialogue with employees
We maintain an open, honest, ethical and respectful dialogue with employees.
We ensure that information flows quickly and encourage dialogue. We also use
internal communication to promote and reinforce the values that guide us on a
daily basis. The Bank's high standards for communication with employees are
set out, among others, in the BNP Paribas Group Code of Conduct and the
GObeyond Strategy 2022-2025.
The priorities of the Bank's internal communications are:
simple and understandable messages,
transparent communication, especially on difficult subjects,
the principle: "employees are the first to know",
ethical behaviour and consistency with the Bank's values,
employee development and involvement.
For the convenience of employees and the effectiveness of communication
activities, we have implemented several communication channels at the Bank.
One of the most important sources is Echonet, the Bank's intranet, which
contains a wealth of useful, continuously updated information. Employees also
receive regular mailings, the weekly Hello newsletter and surveys. We also
conduct webinars and podcasts.
Channels of communication with employees are: Echonet - the Bank's intranet,
mailings, Hello newsletter - once a week, wallpapers, screensavers, pop-ups,
videos, podcasts, surveys, polls, opinion surveys, quizzes and competitions,
webinars, employee meetings with the Management Board, Town hall (also
online), screens in head offices, Bonjour magazine (monthly online magazine ),
offline activities (e.g. dedicated content in the head office and Customer centres,
mural in the head office at 2 Kasprzaka Street in Warsaw).
Employee satisfaction survey
At the Bank, we want to know exactly what employees think about working in
our organisation. We want to respond quickly and efficiently to the needs and
possible challenges raised by employees, which is why we conduct a Pulse Check
survey regularly, three times a year. The results go to managers, HR Business
Partners and the Board of Directors. In 2022, the highest rated aspect was the
autonomy and support provided by managers (with an average of over 90%
positive ratings). Attendance in the last survey in 2022 was 83%.
eNPS Pulse Check indicator
eNPS
2019
2022
Purpose 2025
Question: how much do we
recommend BNP Paribas Bank as an
employer to our friends and family?
-9
18
20
We calculate the eNPS indicator based on the answer to the question "How likely
is it that you would recommend the BNP Paribas Bank Polska S.A. as an
employer to your friends and family?". Each employee responds using an "11-
point" scale from 0 to 10. During answering, it is important to keep in mind how
individual choices are interpreted:
choice of ratings from 0 to 6 - means "I am not satisfied with the pro-employee
activities offered by the Bank" (critic group),
choice of ratings 7 or 8 - means "I do not have an opinion on this subject and I
find the Bank's pro-employee activities neutral" (indifferent group),
selection of ratings 9 or 10 - means "I have a positive opinion of the activities
implemented for employees at the Bank (promoter group).
Based on these results, the eNPS index is calculated according to the formula:
eNPS = % promoters - % critic group.
Our Bank's plans for the upcoming years include simplifying the process of
collecting employee voices through surveys and analysis conducted in the
organisation. This process will be taken care of by the Employee Voice Team, a
cross-functional unit that brings together participants and competences from
different areas. Its role is to listen to, aggregate and learn from employee
feedback.
Employee salaries
We implement a rational, sustainable and manageable remuneration policy at
the Bank, which is in line with our strategy, accepted level of risk and standards
and core values. The policy is based on clear principles and addresses good
market practices in terms of remuneration. From the formal point of view, the
rules related to remuneration are set by the "Company Collective Labour
Agreement" and the "BNP Paribas Bank Polska S.A. Employee Remuneration
Policy". In addition, the Bank also has a remuneration policy for individuals who
have a material impact on the Bank's risk profile.
The employee bonus system is based on the Management by Objectives (MbO)
formula. In practice, this means that an employee's individual bonuses are linked
to the level of achievement of objectives - both quantitative and qualitative. The
combination of individual and team objectives illustrates the level of expected
performance, taking into account the Bank's risk profile and attention to
activities in line with the interests of the Customer.
The Remuneration Committee and the Nomination Committee support the
Supervisory Board in its supervisory duties in human resources management.
They monitor and supervise the most important processes - succession plans,
professional development of employees, remuneration policy. The committees
prepare opinions and recommendations for the Supervisory Board, which include
the evaluation of candidates for the Management Board and candidates for the
Supervisory Board, the terms and conditions of employment of Management
Board members, including the amount of agreed and awarded variable
remuneration. The Bank implements a compensation review process
(Compensation Review Process) on an annual basis - one of the important
criteria considered in this process is reduction of the pay gap, for which
dedicated funds are allocated.
At the end of 2022, the pay gap, as expressed in the Gender Pay Gap indicator,
was 6.51%. This means that men's salaries were 6.51% higher than those of
women in comparable positions. The indicator is a weighted average of the size
of the different employee groups. Compared to 2021, the ratio has decreased by
0.81 p.p. The Bank's strategic objective under the GObeyond strategy for 2022-
2025 is to reduce the wage gap to below 4%.
Gender Pay Gap Indicator
2020
2021
2022
2025
objective
GPG
8.26%
7.32%
6.51%
<4%
We calculate the Gender Gap Pay indicator for homogeneous employee groups to
ensure transparency and consistency of data. We divided employees into groups
by area of employment and classification level - this allows us to compare the
salaries of women and men who perform similar work. We included in the
calculation of the indicator all active employees with more than one year of
service with the Bank and who remained employed at the end of December 2022.
In the analysis, we took into account total salaries in comparable positions. We
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 102
also recorded the differences that result from variable remuneration and other
processes.
Table 39. Ratio of men and women base salary by employee category
Ratio of base salary of women and men
2022
Management Board
1.17
key managers
1.25
managers
1.24
other employees
1.35
The indicators as required by the GRI standard are calculated on the basis of
heterogeneous groups, i.e. the groups include employees at different job levels,
with different job valuations and corresponding salary valuations. Therefore, the
indicator is overestimated.
[2-21]
Table 40. Total annual remuneration ratio
Remuneration index
Bank
the ratio of the total annual remuneration for the highest paid
person in the organisation to the total annual median
remuneration for all employees (excluding the highest paid
person)
40.18
the ratio of the percentage increase in total annual
remuneration for the best-paid person in the organisation to the
median of percentage increase in total annual remuneration for
all employees (excluding the best-paid person)
1.95
In order to make total remuneration consistent, the population for above
indicators includes active employees with a minimum of one year's experience in
the organisation excluding expatriates posted to work in Poland and technical
FTEs.
Wellbeing and employee health
The Bank's employees are offered attractive benefits and participation in
initiatives to look after their health, develop their sport skills and pursue their
passions. The benefits on offer have been designed so that relatives of
employees can also benefit from them. The benefits offered at the Bank are
grouped into four pillars, and their large number and wide range allow us to
tailor benefits to the individual needs of each person.
[401-2]
Benefit offer for Bank employees (full-time employees, if not indicated
differently)
Pillar: Security
Employee Capital Plans.
Life and accident insurance for employees and their family members (also for
part-time and temporary employees).
Additional insurance for school-age children.
Travel insurance.
Pillar: Health
Lux-Med healthcare programme for employees and their relatives (also for
part-time and temporary employees).
MultiSport Plus cards (Employee, Accompanying Person, Kids, Kids Aqua,
Student, Senior).
The Worksmile app, which brings employees together around their passions
and sporting activities. The app supports the GOOD programme and allows us
to stay in touch while working remotely (also for part-time and temporary
employees)
Health days for all Bank employees, during which we promote healthy
lifestyles - exercise and healthy eating (webinars on healthy eating, stationary
events: body composition analysis, relaxation sessions and office exercises).
Influenza vaccinations.
Pillar: work-life balance
Action Two Hours for Humanity.
Action Two Hours for Health.
MyBenefit Cafeteria System (points top-ups for employees and their children).
Holiday subsidies for employees and their children.
Financial assistance from the Company Social Benefits Fund (also for part-time
and temporary employees).
Actions and activities within the framework of the Bank Close Relatives
programme (pl. Bank Bliski Bliskim - e.g. parental week.
Pillar: Friendly work environment
Wellbeing programme GOOD (also for part-time and temporary employees).
Flexible working hours.
Additional holiday days (additional occasional leave, additional holiday day for
taking all current leave in a calendar year, leave for volunteering).
Promotion of parental holidays.
Personalised "Szumiś" teddy bears for new-born children of employees.
Mortgage loans from the Company Social Benefits Fund.
Offer of discounts and banking products for Bank employees.
The Bank's flagship wellbeing programme is the "Good" programme, which aims
to improve awareness of caring for a good quality of life and taking care of
oneself, strengthening psycho-physical health, reducing stress, quieting the
mind, working with one's emotions taking care of immune system and eating
healthy. Employees receive a schedule of meetings every Monday and activities,
which include health and stress webinars, psychological support, meetings with
nutritionists, as well as talks with a mental coach and massages.
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 103
[403-6]
As part of the Lux Med healthcare programme, we pay for employees (employed
for at least 0.3 FTE) a healthcare package including, among others,
immunizations, occupational medicine examinations, consultations of specialist
doctors, laboratory examinations and ambulatory procedures, diagnostic
examinations, dental prophylaxis, emergency dental care, rehabilitation,
examination package without referral. In addition, under the contract with Lux
Med, employees can choose from several packages with a broader range of
available services.
Health and safety at work
[403-1] [403-2] [403-3] [403-4] [403-5] [403-6] [403-7] [403-9]
Working at the Bank is a safe job. Health and safety issues are implemented in
compliance with all applicable legislation and additional internal regulations
developed by our experts. Reporting directly to a member of the Management
Board, the Operations and Business Support Health and Safety Team is
responsible for occupational safety, and in addition the Bank also has a Health
and Safety Committee, which acts as an advisory body. The Commission is made
up of representatives of the Bank, the doctor who provides preventive health
care for employees and employee representatives. The Chairman of the Health
and Safety Committee is the Director of the Property and Administration
Department, and the Vice-Chairman is the Company Social Labour Inspector.
Every Bank employee undertakes mandatory initial health and safety training.
Knowledge about safety at work is regularly updated during periodic trainings.
Health and safety specialists remind employees of the most common
circumstances and causes of occupational accidents and illnesses, emphasise
the importance of preventive health care, and educate on procedures to be
followed in the event of an accident or emergency, such as a fire or emergency.
There are also 15 defibrillators available at the Bank and more than 500
employees have been trained in first aid. Each of the Bank's employees has also
been informed of the methods to report their health and safety concerns to a
dedicated email box or in person during inspections of working conditions or
training sessions conducted by the Health and Safety Team staff.
The Bank conducts occupational risk assessments based on the "Procedure for
drawing up a risk assessment" and, where risks are identified, the Health and
Safety Team verifies that the risk of unwanted events can be minimised and
makes adjustments to achieve this. In extreme cases, employees may not
perform their duties. The Bank ensures that workplaces are comfortable and
ergonomic. Where necessary, workstations are equipped with orthopaedic chairs,
vertical computer mice and sensorimotor pillows for people with chronic muscle
and tendon disorders. We have also prepared trainings for employees on how to
organise an ergonomic workstation at home. People with disabilities working at
the Bank are offered help to adapt their workstation to their needs and to equip
them with the equipment necessary for their work. The Bank also reimburses the
purchase of glasses.
In 2022, we conducted two campaigns to raise awareness and popularise the
issues of safety, health and ergonomics at work. Among other things, we
organised a competition in which one could win prizes to improve safety and
health in the working environment.
All accidents at work are recorded in the accident register and in the RiskCare
system. After each incident, an accident report is prepared with conclusions and
preventive recommendations. In addition, once a year the Health and Safety
Committee comprehensively analyses the accident rate at the Bank. In 2022, the
largest number of accidents at the Bank occurred in the office area - these were
slips, stumbles and associated collapses. We also recorded several traffic
collisions and accidents during remote working. There were no fatalities or
serious injuries.
Table 41. Accidents at the Bank in 2022
Women
Men
Total
Branches
12
2
14
Head offices
4
5
9
Total
16
7
23
Table 42. Accidents at the Bank between 2019 and 2022
2019
2020
2021
2022
Number of accidents
52
26
21
23
Employees development
[404-2] [3-3] [Education and employee development]
We want every person employed at the Bank to know and feel that they are
working in an organisation that develops professional competence. In addition to
job-related mandatory training, which we primarily deliver remotely, we offer a
broad package of individual trainings and the possibility of subsidising language
learning or studies. We make around 60% of the Bank's annual training budget
available to the individual business areas. We believe that decentralisation
results in better decisions on the choice of topics for trainees and participants.
The training team is divided - in line with the Agile methodology - into
development and operations. This speeds up and improves the introduction of
new developments and the maintenance of an optimal training and development
offer.
In 2022:
630 people attended individual training sessions,
325 group sessions,
82 coaching sessions for 21 people,
218 people individually studied a foreign language,
67 people received study funding,
124,966 e-learning courses delivered.
These are supplemented by a Central Development Offer, implemented with
internal and external specialists, focused on the key competences of the future -
social, technical and cognitive. In 2022, we invited employees to 117 training
sessions, 23 workshops and 25 webinars. 1,204 people took part in these training
sessions.
We develop competences of our employees from the day one.
Newly recruited employees receive basic general training - "Nice
to see you" - as well as initial training in the product range and
the use of operating systems.
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 104
The Bank's top training initiatives in 2022 were:
'Value Meetings', a workshop to support the implementation of Organisational
Culture,
The #MamToDamTo programme, which, among other things, allows for the
development of skills in MS Office tools and the use of banking applications.
Training also provided knowledge in the areas of Agile and Lean management.
In the #MamToDamTo programme, we provide employees with the opportunity
to share knowledge and support each other's development. In 2022 more than
1,600 participants participated in 175 training courses on 32 topics.
UniversITy - IT training with more than 1,600 participants in 2022,
To be Proud - a leadership development programme in the retail network,
Women Up development programme, Future UP mentoring programme,
ESG Academy - over 150 people trained as promoters on ESG topics,
Leader Development Academy (New Born Leaders) - training for people with
less than one year of managerial experience. The Academy shapes the
leadership attitude desired in the Bank, develops leadership competencies and
supports the building of an organisational culture and attitudes in line with our
values
In 2022, our employees occupied 22,841 places in training groups as part of
various development activities. 907 people took part in various individual
activities. It can be stated that each of our employees participated on average in
three development activities in 2022.
At the Bank, we have also developed separate programmes for our talents.
Leaders for Tomorrow is implemented together with the BNP Paribas Group, and
the programme is attended by 80 people for whom special events, training and
projects are organised to develop their specific competencies.
We are open as well to people who are just considering their career direction.
Our Summer Internship Programme at the Bank is addressed to students in at
least their second year of university. We want to break down the stereotypes
associated with working in the banking industry and show what an exciting place
to work can be in a modern, contemporary bank. During the internship, trainees
gain knowledge of banking, Customer service, new technologies and marketing.
Students are invited to participate - remotely, on-site or hybrid - in engaging
tasks and projects. For older students - 3rd and 4th year and graduates - we
have prepared internship programmes. Their aim is to prepare interns to join our
organisation.
For employees who are parting ways with the Bank, we offer programmes to
support them in finding their way in the labour market: an outplacement
programme for employees offering support in finding a job, defining a
professional profile, assistance in preparing a CV, preparing for a job interview.
Retirement assistance programmes were not implemented in 2022.
[404-1]
Table 43. Average number of training hours
2021
2022
Average number of training hours
received by employees
24.32
28.99
by gender
women
24.57
30.27
men
23.82
26.52
by employment category
Management Board
25.71
18.51
key managers
-*
27.06
managers
36.53
27.76
other employees
22.52
29.16
*in 2021, the average number of training hours by category did not have a recognition for 'key managers'.
Table 44. Average number of training hours between 2019 and 2022
2019
2020
2021
2022
Average number of
training hours per
employee
25.51
18.4
24.32
28.99
[404-3]
Table 45. Percentage of employees in the Bank receiving regular performance
assessments and career development reviews
2022
2021
Percentage of employees
in the Bank receiving
regular performance
assessments and career
development reviews
82.06%
89.34%
by gender
women
79.51%
86.37%
men
87.02%
95.24%
by employment category
Management Board
100.00%
100.00%
key managers
87.80%
95,29%
managers
82.01%
92.42%
other employees
81.99%
88.76%
Employee evaluation covers employees (employed for more than 4 months)
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 105
A diverse and inclusive workplace
At the Bank, we create a diverse community for a wide range of talents. The inclusive organisational culture, which has
been built consistently over the years, increases creativity, drives innovation, opens up to new ideas, markets, Customers,
builds business advantage, and consequently contributes to the development of employees and the success of the entire
organisation. Everyday cooperation is based on trust and respect - we want everyone at our Bank to be able to express
themselves, realise their career aspirations and passions, feel valued and have a sense of impact.
Diversity management policy
[406-1]
Since 2016, a "Diversity Management Policy" has been in force for everyone at our Bank, which allows us to promote a
working environment focused on respecting and making the most of the potential contained in the differences between
employees. According to the Policy, diversity is respected at the Bank in every aspect of workplace management. These
principles are strictly respected in recruitment, career development and training. We also do not tolerate any direct or
indirect discrimination in employment at the Bank.
An employee, either male or female, who has experienced disrespect towards him/herself or others should contact his/her
supervisor or HR Business Partner in the first instance on this matter. If, for various reasons, this is not possible, he or she
may also use other channels (as described in the Policy for dealing with breaches regarding respect for others at BNP
Paribas Bank Polska S.A.):
mailing box: sprawypracownicze@bnpparibas.pl,
anonymous reporting (whistleblowing).
All reports are considered by the Employee Relations Team, while cases involving behaviour that may indicate the presence
of bullying, discrimination, harassment or sexual harassment - are referred to the Employee Standards of Conduct
Committee for consideration.
In 2022, employees submitted a total of 24 cases. They mainly reported behaviours concerned issues in relationships with a
supervisor or between colleagues, including:
suspected mobbing - 5,
potential gender discrimination - 4,
other inappropriate behaviour - 15.
We analysed all reported cases due respect, honestly, fairly and with complete discretion. In line with the above principles,
these matters have not been publicly announced at the Bank and only those directly involved in their investigation had
access to them. Due to the level of seriousness of the allegations made, the Bank's Employee Standards of Conduct
Committee was set up once during the period described. As a result of the Committee's work, the report of bullying was not
confirmed. Following investigations into reports of discrimination, none of the allegations made in the reports were
confirmed. In all cases, the offenders of inappropriate behaviour suffered consequences appropriate to the misconduct, and
the affected employees received the necessary support.
Diversity & Inclusion (D&I) management is part of GObeyond's business strategy for 2022-2025. In the TOGETHER pillar, we
focus on a culture of courage, agility and diversity as a basis for supporting efficiency and creativity.
Our commitments to a diverse and inclusive workplace (D&I):
at least 30% female representation in management positions by 2025.
the Pay Gap - we have reduced the Gender Pay Gap indicator by 0.81p in 2022. The Bank's strategic goal is to reduce the
pay gap to below 4%.
Increase employment of people with disabilities.
Monitoring of indicators relevant to D&I management, including for example female vs male participation in specific
initiatives, parental leave take-up, retention rate by gender.
BNP Paribas Group's cyclical survey on the Code of Conduct and diversity and inclusiveness.
Supporting bottom-up employee initiatives for groups at risk of exclusion.
Supporting diversity is one of the commitments in the BNP Paribas Group's global Strategy. The Group's Management
Board is also involved, with measurable targets cascaded to individual countries. With the help of the Group leaders and
Diversity Officers, countries implement their local challenges while respecting local circumstances and supporting the
potential of bottom-up employee initiatives.
80
age of the oldest employee
18
age of the youngest employee
40
average age of employees
39
the longest time of work
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opportunities
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 106
[405-1]
Table 46. Group and Bank employment structure in 2022 by gender - number of active employees (as at 31.12.2022)
Capital Group
Bank
Employment structure
Women
Men
Total
Women
Men
Total
Management Board
3
14
17
2
7
9
key managers
47
72
119
47
72
119
managers
479
379
858
461
367
828
other employees
4,654
2,411
7,065
4,571
2,346
6,917
Total
5,183
2,876
8,059
5,081
2,792
7,873
Table 47. Group and Bank employment structure in 2022 by gender - percentage of active employees (as at 31.12.2022)
Capital Group
Bank
Employment structure
Women
Men
Total
Women
Men
Total
Management Board
18%
82%
100%
22%
78%
100%
key managers
39%
61%
100%
39%
61%
100%
managers
56%
44%
100%
56%
44%
100%
other employees
66%
34%
100%
66%
34%
100%
Table 48. Group and Bank employment structure in 2022 by age - number of active employees (as at 31.12.2022)
Capital Group
Bank
Employment structure
<30 years
old
30-50
years old
>50 years
old
Total
<30 years
old
30-50
years old
>50 years
old
Total
Management Board
0
7
10
17
0
3
6
9
key managers
0
88
31
119
0
88
31
119
managers
19
706
133
858
18
681
129
828
other employees
1,030
5,135
900
7,065
985
5042
890
6,917
Total
1,049
5,936
1,074
8,059
1,003
5,814
1 056
7,873
Table 49. Group and Bank employment structure in 2022 by age - percentage of active employees (as at 31.12.2022)
Capital Group
Bank
Employment structure
<30 years
old
30-50
years old
>50 years
old
Total
<30 years
old
30-50
years old
>50 years
old
Total
Management Board
0%
41%
59%
100%
0%
33%
67%
100%
key managers
0%
74%
26%
100%
0%
74%
26%
100%
managers
2%
82%
16%
100%
2%
83%
15%
100%
other employees
14%
73%
13%
100%
14%
74%
12%
100%
Method of presentation of indicators: In the 'Key Managers' category, MRTs (Material Risk Taker) - individuals who have a significant impact on the Bank's risk profile without the Management Board - are
included. Other supervisors were included in the 'Managers' category. The percentage relationship refers to the number of active employees in the Group or the Bank.
The simplification of the structure and the new network working model, as well as the transition to the new Agile@Scale operating model, has resulted in a change in the proportion of women in managerial
positions.
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 107
Bank activities promoting diversity
[2-23]
Since 2016, we have signed and respected the Diversity Charter, an international initiative under the auspices of the
European Commission, which commits to prohibiting discrimination and promoting diversity. We have also signed the
"BNP Paribas Agreement on Fundamental Rights and Global Social Solutions together with the ILO (International Labour
Organisation) Global Business and Disability Network Charter". The document obligates us to respect human rights in our
business activities and promote diversity, gender equity and protect health and quality of life at work. Overseeing and
coordinating the respect for diversity are tasks of the two individuals appointed to special diversity positions in our Bank -
Diversity Officers.
Diversity activities are subject to external assessment. In 2022, we were among the leaders in diversity management for
the fourth successful year in a row in the Diversity In Check survey organised by the Responsible Business Forum. With a
score above 80%, which only 6 organisations achieved.
We demonstrate respect for diversity and an inclusive organisational culture at all times - not only towards those already
employed, but also towards those who apply for a job at our Bank. We prepare recruitment offers ensuring that no
candidates are excluded and that equal opportunities are ensured. In line with the "Principles of Employee Recruitment at
BNP Paribas Bank", we educate and train the Recruitment Team on how to conduct inclusion interviews respecting
diversity. New employees follow a specific D&I training as part of the onboarding process, where we provide knowledge
about the D&I Strategy, the principles of mutual respect and the employee initiatives for groups at risk of exclusion
supported by the Bank.
Initiatives promoting equal opportunities for women and men:
The Decalogue of Equal Treatment - a set of principles against discrimination, micro-discrimination and exclusion in the
workplace created by the BNP Paribas Women of Change employee network on the basis of a survey exploring
perceptions of equal treatment. The project is widely communicated and the basis of the 'Spot the Difference, Don't
Discriminate' campaign are animations showing specific behaviours and attitudes that are inappropriate and those that
build respectful relationships in the workplace. The campaign won the top prize in the open category at the Golden
Arrow awards, as well as an accolade at the Employer Branding Excellence Awards,
Just a word" marketing campaign, promoting feminatives, the use of which helps to combat stereotypes and promotes
equal opportunities between genders,
preparation of a Feminitivas Dictionary - an online guide where, after entering the masculine name of an occupation, one
can look up the feminine name and a commentary if the feminative in question has several variants or is not commonly
used,
partnership with the Share the Care Foundation and authorship of the guide for employers “50/50 it pays off for
everyone. The role of employers in encouraging men to take parental leave”, as well as the publication “The 100 pro guy”
promoting a new dimension of fatherhood, partnership, parental equality
reducing the gender pay gap and communicating it transparently in non-financial reports. Equal opportunities for
promotion and participation in talent programmes and set specific targets for equal participation of women at all levels
of the organisation's positions,
partnership with the Women in IT Day initiative - a free online event for women who want to start or develop their
career in IT,
partnership with the #KnowledgeNotHasGender (pl: #WiedzaNieMaPłci) campaign, which aims to demonstrate the
importance of empowering women in public debate and reducing the disparity in the presence of female experts in the
media.
Initiatives for parents:
A cyclical event called Parents' Week, during which, among other things, we invite employees' children to the Bank, show
where and how their parents work and provide knowledge to improve parenting skills; this year, we talked about, among
other things, non-violent communication, parental wellbeing but also cyber security and digital hygiene
Participation in a Share the Care Foundation debate on engaged fatherhood and transforming approaches to being a
father,
Thematic webinars during the Diversity Days on the entitlements of both parents and the planned legal changes related
to the WLB directive, as well as the business competences that fathers can develop when caring for and creating a bond
with their children
As part of the Health Starts in the Head series, webinars on depression in children, women and men, children's fears,
difficult situations: how to talk to children about war
Table 50. Parental leave at the Bank
2022
Women
Men
Total
Number of employees who have
taken parental holiday
409
6
415
The data refers to maternity, paternity and parental leave.
Initiatives promoting equal opportunities for people with disabilities:
Starting e-learning for managers and employees with disabilities,
supporting people with disabilities in obtaining a disability certificate,
awareness campaign on neurodiversity,
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cooperation with the AsperIT Foundation - awareness campaign, webinars and audit of the organisation's readiness to
work with neuroatypical people,
competition for male and female employees to create a slogan, poster, story about the inclusion of people with
disabilities,
a series of films-interviews "People with experience" presenting interviews with male and female employees who face
the challenge of disability and want to share this experience with the banking community.
organisation of the webinar "I CAN too" with Agata Roczniak, inspirer, educator and CEO of the Diversum Foundation,
a one-off additional benefit of PLN 1,000 for people with disabilities working at the Bank.
Activities were recognised in the Diversity Charter Award 2022. In the category DEI in Business - we won 1st place in the
partnership subcategory for the project "Activating people with disabilities".
Table 51. Number of employees with a recognised disability employed by the Bank by gender
2021
2022
Women
in head offices
23
29
in branches
30
44
Men
in head offices
17
29
in branches
5
9
Total
75
111
Table 52. Share of employees with a recognised disability employed by the Bank between 2019 and 2022
2019
2020
2021
2022
Number of persons employed at the
Bank with a recognised disability
59
60
75
111
Rate of staff with a recognised
disability employed by the Bank
0.60%
0.65%
0.85%
1.29%
The total number of employees (8604) for the calculation of the indicator also includes technical FTEs
Initiatives supporting LGBT+ community:
the Bank's participation in the Equality Parade in Warsaw, the Bank's stand in the Equality Town,
webinar for employees with journalist Piotr Jacoń, who talked about the challenges faced by parents of non-
heteronormative people, sharing his experience as a father of a transgender daughter,
webinar with psychologist, Bank employee and representative of the LGBT+ community "How to speak and write about
non-binary people. On gender-neutral pronouns',
joining the "Business does not exclude - You can be yourself here" campaign (Love Does Not Exclude Association
initiative)
"Bench of Dialogue" - setting up a rainbow bench on the patio of the Bank's headquarters in Warsaw and inviting
employees to discuss difficult topics in a spirit of dialogue and respect.
These activities have been recognised. In 2022, we were ranked first in the Cashless for Equality (2021 - 4th place) ranking
of financial institutions that care about LGBT+ professional and social equality, and in the Diamonds Awards 2022 - BNP
Paribas was the LGBT+-supportive employer of the year.
Initiatives promoting diversity and inclusivity in the workplace in 2022.
support - also financial - activities of workers' networks as partners who are particularly responsive to the needs of
equal opportunities for those social groups that are at risk of exclusion, e.g. women, fathers or the LGBT+ community,
selected employee networks in the Bank:
- women's network "Women Changing BNP Paribas", which runs, among other things, the original Women Up
development programme, the Wo mentoring programme and Future Up mentoring,
- fathers' network "Dad, you've got it like in the bank", which promotes a partnership family model,
- the BNP Paribas PRIDE Poland network supporting the LGBT+ community.
annual Diversity Days. In 2022, we invited employees to a series of meetings, webinars and workshops on topics such as
community, dialogue, employee networks and the benefits of working with neurodiverse people. External and internal
experts also introduced best practices for conducting intergenerational dialogue and combining business competence
development with childcare,
dialogue with groups at risk of exclusion, exploring their needs, their sense of inclusion in the Bank, designing
appropriate actions. For example, anonymous surveys on the situation of lGBT+ people or 50+ people initiated by LGBT+
networks and employee initiatives or Agave Age,
cooperation in the creation of a guide for companies developing on the basis of diversity and inclusion ideas - "Diversity
and inclusive culture step by step" prepared by the Polish Institute for Human Rights and Business (in 2022 the guide
will be available in English and Russian),
First Aid for Humanity campaign in partnership with the Polish Red Cross - learning first aid in combination with a
tolerance lesson.
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 109
Anna Kania, TOM Manager
Financial results
Group’s financial results 110
Business segment performance 130
Bank's financial results 134
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Group’s financial results
Consolidated statement of profit and loss
The Group's result on banking activity in the analysed period amounted to PLN 5,351,946 thousand and was higher y/y by
PLN 542,689 thousand, i.e. 11.3%.
The most important events affecting the level of the result from banking activities in 2022 and its comparability with the
last year were changes in the macroeconomic situation, including, above all, the strongest increase in inflation in decades,
which became apparent already in the fourth quarter of 2021 and accelerated significantly with the outbreak of the war in
Ukraine. They were accompanied by changes in economic and monetary policy, which changed the conditions for banking
operations. The Group's financial performance was most affected by:
the monetary policy tightening cycle by the Monetary Policy Council (MPC). From the 6th of October 2021 to the end of
September 2022, the MPC increased interest rates eleven times by a total of 665 bps to the level of 6.75% for the
reference rate. Since October 2022, the MPC has kept NBP interest rates unchanged. According to a statement made by
the NBP President, the MPC has not yet completed the policy tightening cycle, but has suspended it until the central
bank's new macroeconomic forecast is presented in the March Inflation Report. The increases and expectations of their
scale have pushed up market interest rates and contributed to the Group's interest income in 2022,
a lower result on hedge accounting linked to the pace and direction of changes in interest rates compared to 2021.The
change in fair value of hedging transactions is recognized in the result on hedge accounting, which was lower in 2022 by
PLN 37,102 thousand y/y, interest income from IRS transactions (including on cash flow value hedge derivatives) is
included in net interest income and was lower by PLN 769,861 thousand y/y in 2022
on 14 July 2022, the Act on Crowdfunding for Business Ventures and Assistance for Borrowers was enacted. Under the
Act, a borrower is able to request a suspension of performance of mortgage contracts (moratorium) granted in PLN from
1 August 2022 to 31 December 2023, i.e. a total of 8 instalments, at no cost. Based on data on the use of the
aforementioned opportunity by Customers, the Bank recognised an amount of PLN 965 million of negative impact on the
Bank's result, in the net interest income of the third quarter of 2022 and its adjustment affecting the improvement of the
net interest income in the fourth quarter of 2022 in the amount of PLN 70 million,
declining in 2022 - with the deterioration of the macroeconomic situation - individual Customer demand for credit
products associated with a significant decline in consumption dynamics, reflecting the negative impact of high inflation
and interest rates on the level and structure of spending and the deterioration of the economic situation of households.
This was most evident in the case of the PLN mortgage market, where a decline in Customer demand and
creditworthiness led to a significant reduction in sales and, consequently, to a nominal decline in the value of the
portfolio of these loans on a sector-wide scale. The aforementioned factors also influenced the decline in sales of
consumer loans compared to 2021, slowing down the growth rate of bank commission and fee income.
the end of sanitary restrictions related to the COVID-19 pandemic in 2022, together with the acceleration of inflation,
influencing increasing levels of business Customer activity in 2022. This was reflected in an increase in demand from
corporate Customers and SMEs for investment credit and an increase in the scale of operations, which had a positive
impact on the result from trading activities in the part of transactions with Customers. In contrast, the high cost of
credit, uncertainty about the future economic climate (caused mainly by the war in Ukraine) and the unstable legal
environment have had a negative impact on investment loans of entrepreneurs and individual farmers.
Elements of the regulatory environment that negatively affected the 2022 results compared to 2021 include:
significant increase in BFG contributions and costs related to contributions to the assistance fund under the Commercial
Bank Protection System S.A. (IPS). The sum of costs incurred on the aforementioned items was by PLN 215,519 thousand
(i.e. 150.3%) higher in 2022 compared to 2021 (PLN 358,871 thousand vs. PLN 143,352 thousand).
incurring costs in 2022 related to payments to the Borrowers' Support Fund of PLN 75,350 thousand compared to the
release of a provision of PLN 1,043 thousand in 2021
In total, general administrative expenses and depreciation incurred in 2022 were by PLN 494,927 thousand higher than in
2021. In addition to the increase in regulatory costs described above, this was also due to inflationary pressures
translating into an increase in personnel and administrative costs.
The factor significantly affecting the level of the Group's net result in 2022 and its comparability with 2021 continues to be
the costs for legal risk provisions related to foreign currency loans. In 2022, these were charged to the Group's results by
PLN 740,000 thousand compared to PLN 1,045,304 thousand in 2021 (a decrease in costs of PLN 305,304 million y/y).
The cost of risk remained at a level similar to the previous year (the negative result of impairment losses on financial
assets and provisions for contingent liabilities increased by PLN 8,825 thousand y/y). The positive impact of sales of
receivables made in 2022 was lower by PLN 50,876 thousand (amounting to +PLN 34,044 thousand compared to +PLN
84,920 thousand in 2021).
BNP Paribas Bank Polska Group generated a net profit of PLN 441,497 thousand in 2022, by PLN 265,199 thousand
(i.e. by 150.4%) higher than that achieved in 2021. It is estimated that, excluding the negative impact of credit
moratoria, the Group's net profit in 2022 would amount to PLN 1,166,447 thousand and would be PLN 990,149
thousand (i.e. 561.6%) higher than that generated in 2021 (PLN 176,298 thousand on a comparable basis).
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Table 53. Statement of profit or loss
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand PLN
%
Net interest income
3,493,005
3,140,942
352,063
11.2%
Net fee and commission income
1,136,915
1,048,986
87,929
8.4%
Dividend income
10,817
8,550
2,267
26.5%
Net trading income
754,701
633,493
121,208
19.1%
Net investment income
29,227
(5,133)
34,360
-
Result on fair value hedge accounting
13,267
50,369
(37,102)
(73.7%)
Result on derecognition of financial assets/liabilities
measured at amortised cost due to material
modification
(2,159)
-
(2,159)
-
Other operating income and expenses
(83,827)
(67,950)
(15,877)
23.4%
Net income on banking activity
5,351,946
4,809,257
542,689
11.3%
Net impairment allowance on financial assets and
provisions for contingent liabilities
(275,010)
(266,185)
(8,825)
3.3%
Result on provisions for court proceedings related to
mortgage loans in CHF
(740,000)
(1,045,304)
305,304
(29.2%)
General administrative expenses
(2,626,707)
(2,143,976)
(482,731)
22.5%
Depreciation and amortization
(411,749)
(399,553)
(12,196)
3.1%
Operating result
1,298,480
954,239
344,241
36.1%
Tax on financial institutions
(426,553)
(338,110)
(88,443)
26.2%
Gross profit
871,927
616,129
255,798
41.5%
Income tax
(430,430)
(439,831)
9,401
(2.1%)
Net profit
441,497
176,298
265,199
150.4%
Net profit excluding the impact of credit moratoria
1,166,447
176,298
990,149
561.6%
Note: Due to rounding, individual values in the tables and graphs of this Report may not add up.
Chart 13. Structure of net income on banking activity in PLN million
* The ‘Other’ category includes the result on investment activities, result on hedge accounting, dividends income, result on derecognition of assets/liabilities and other operating income and expenses
Chart 14. Net income on banking activity by segments
The changes in the structure of the banking result by segment presented in the charts above are, among other things, the
result of the charge to the Retail and Business Banking Divisions for credit moratoria and the improvement in net interest
income and trading activities achieved by the Corporate Banking, SME and CIB.
3,140.9
3,493.0
1,049.0
1,136.9
633.5
754.7
-14.2
-32.7
4,809.3
5,351.9
12M 2021 12M 2022
Other*
Net trading income
Net fee and commission income
Net interest income
+11.3%
+130.7%
+11.2%
+8.4%
+19.1%
CIB Banking
6%
Other
banking
activity
11%
Corporate
Banking
24%
SME Banking
9%
Retail and
Business
Banking
50%
12M 2021
PLN
4,809
million
CIB Banking
7%
Other
banking
activity
10%
Corporate
Banking
31%
SME Banking
11%
Retail and
Business
Banking
41%
12M 2022
PLN
5,352
million
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Net interest income
Net interest income, which is the Group's main source of revenue, amounted to PLN 3,493,005 thousand in 2022 and was
higher y/y by PLN 352,063 thousand, or 11.2%. In 2022, compared to 2021, interest income was higher by PLN 3,061,591
thousand, or 89.5%, while interest expenses increased by PLN 2.709.528 thousand, or 968.1%.
A significant external factor influencing the increase in interest income and expenses in 2022 compared to 2021 was the
policy of the National Bank of Poland regarding the level of basic interest rates. In an effort to counteract rising inflation,
the Monetary Policy Council continued the cycle of monetary tightening in Poland, which began in October 2021. By the
end of the third quarter of 2022, the MPC had made eleven interest rate increases with a total of 655 bps (to the level of
6.75% for the reference rate). At its meeting in early October 2022, the MPC did not change interest rates for the first time.
According to the NBP president's statement, the MPC has not yet completed the policy tightening cycle, but has suspended
it until the central bank's new macroeconomic forecast is presented in the March Inflation Report. An estimate of the
sensitivity of the Group's interest income to changes in interest rates is presented in Note 55.5 of the Consolidated
Financial Statements.
Table 54. Net interest income
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
Change y/y
thousand PLN
%
Loans and advances to banks
340,896
9,147
331,749
3,626.9%
Loans and advances to Clients measured at amortized
cost
4,920,973
2,411,404
2,509,569
104.1%
Loans and advances to Clients measured at fair value
through profit or loss
88,692
9,969
78,723
789.7%
Debt instruments measured at amortized cost
599,413
591,247
8,166
1.4%
Debt instruments measured at fair value through
profit or loss
8,121
4,640
3,481
75.0%
Debt instruments measured at fair value through
other comprehensive income
324,117
190,653
133,464
70.0%
Derivative instruments in fair value hedge accounting
188,498
195,568
(7,070)
(3.6%)
Derivative instruments in cash flow hedge accounting
11,628
7,912
3,716
47.0%
Buy-sell-back securities
67
274
(207)
(75.5%)
Interest income, total
6,482,405
3,420,814
3,061,591
89.5%
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand PLN
%
Amounts due to banks
(506,952)
(126,757)
(380,195)
299.9%
Debt securities issued
(19,873)
(27,797)
7,924
(28.5%)
Amounts due to Customers
(1,586,802)
(59,828)
(1,526,974)
2,552.3%
Lease liabilities
(15,288)
(4,551)
(10,737)
235.9%
Derivative instruments in fair value hedge accounting
(790,845)
(53,031)
(737,814)
1,391.3%
Derivative instruments in cash flow hedge accounting
(30,960)
(2,267)
(28,693)
1,265.7%
Sell-buy-back securities
(38,592)
(1,056)
(37,536)
3,554.5%
Other related to financial assets
(88)
(4,585)
4,497
(98.1%)
Interest expenses, total
(2,989,400)
(279,872)
(2,709,528)
968.1%
Net interest income
3,493,005
3,140,942
352,063
11.2%
Described above, the increase in interest rates had a positive impact on the profitability of loan products in 2022. The
significant increase in the average gross loan portfolio was also a factor positively contributing to the growth in interest
income.
The level of interest income generated in 2022 on loans and advances to individual Customers measured at amortised cost
was significantly burdened by the need to recognise in the income statement the negative impact on the Group's result
associated with the enactment on 14 July 2022 of the Act on Crowdfunding for Business Ventures and Assistance for
Borrowers, which provided borrowers with a possibility to request a suspension of performance of mortgage contracts
(moratorium) granted in PLN from 1 August 2022 to 31 December 2023, i.e. a total of 8 instalments, at no cost.
Under IFRS 9, banks must recognise in the income statement the difference in the present value of the estimated cash
flows arising from the loan agreements after taking into account the suspension of instalment payments and the gross
present value of the loan portfolio. Based on the observed and forecast number of suspension requests, the Group
recognised an amount of PLN -965 million in net interest income in the third quarter of 2022 and a positive adjustment of
this impact of PLN +70 million in the fourth quarter of 2022, in the interest income item "Loans and advances to
Customers measured at amortised cost - individual Customers" (see also Note 3j Estimated Values - Consolidated
Financial Statements).
In addition, following the entry into force of the Act of 5 August 2022 amending the Mortgage Credit Act and the
Supervision of Mortgage Credit Intermediaries and Agents and certain other acts, the Group recognised in 2022 (third
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quarter) an amount of PLN 29,029 thousand in costs of the provision related to the need to reimburse Customers for
additional fees incurred until the mortgages were established.
As a result of the factors described above, the sum of interest income on loans and advances to Customers measured at
amortised cost and at fair value through profit or loss was 5.009.665 thousand in 2022 and was higher by PLN 2,588,292
thousand, or 106.9%, than the revenue generated in 2021.
Factors that positively influenced the level of interest income in 2021 also included the increase in the scale of operations
and the resulting increase in the average value of the securities portfolio (interest income on debt instruments measured
at amortised cost and at fair value increased over the period under review by a total of 145.111 thousand, i.e. by 18.4%).
Due to the aforementioned increase in market interest rates in 2022, the cost of acquiring deposits increased significantly
and remained close to zero until the end of the third quarter of 2021. This process has been slower than the increase in
loan yields due, among other things, to the significant share of current deposits in the total deposits acquired from
Customers (at the end of the fourth quarter of 2022, it amounted to 67.8%, compared to 87.5% at the end of the fourth
quarter of 2021), which is particularly relevant for deposits held in current accounts of individual Customers.
The cost of interest on liabilities to Customers amounted to PLN 1,586,802 thousand in 2022 and was higher by PLN
1,526,974 thousand, or 2.552.3%, than the cost incurred in 2021.
The level of interest income is affected by the Group's use of fair value hedge accounting and (to a much lesser extent)
cash flow hedge accounting. The change in the fair value measurement of hedging transactions is recognised in the result
on hedge accounting. Interest on IRS transactions and hedged items is recognised in net interest income. Net interest
income on hedging relationships (sum of interest income and interest expense from derivatives under fair value and cash
flow hedge accounting) in 2022 was negative at PLN 621,679 thousand compared to a positive impact of PLN 148,182
thousand in 2021 (a decrease of PLN 769,861 thousand y/y).
Excluding the costs associated with the credit moratoria, the net interest income generated in 2022 would amount to PLN
4,388,005 thousand, up by PLN 1,247,063 thousand, or 39.7% y/y.
Net fee and commission income
The Group's net fee and commission income in 2022 amounted to PLN 1,136,915 thousand and was by PLN 87,929
thousand (or 8.4%) higher than that achieved in 2021. This increase was possible primarily due to the adjustment
measures taken by the Group in the area of pricing policy, higher transaction activity of Clients (payments and cards) and
the continued - in particular in the first and second quarter of 2022 - high level of sales of products and services for
individual Customers and a significantly higher demand from corporates for credit (including ongoing financing) compared
to 2021.
Fee and commission income amounted to PLN 1,405,358 thousand and was higher by PLN 120,813 thousand (i.e. 9.4%)
compared to 2021, while commission expenses amounted to PLN 268,443 thousand and were higher by PLN 32,884
thousand (i.e. 14.0%) y/y. The increase in fee and commission income occurred in all major categories except asset
management and brokerage operations as well as bank account services, including:
debit and credit card services by PLN 79,584 thousand, or 32.3% (among other things, as a result of changes in pricing
policies and a continued growth of card transactions). Revenues from the currency conversion of card transactions,
revenues related to the maintenance and use of debit cards (including fees for card cash transactions), from cooperation
with Euronet and from interchange fees increased,
intermediation in the sale of insurance products by PLN 33,328 thousand, i.e. by 27.7% (due to, among other things,
higher revenues from insurance of mortgage loans, cash loans, from the cooperation with Cardif and from Customer
insurance and Agro Credit),
execution of transfers and electronic banking service by PLN 14,606 thousand, i.e. by 17.5% (as a result of higher
revenues from commissions on domestic and foreign transfers resulting from, among other things, a significant increase
in the volume of payments made by businesses).
lending and leasing activities by PLN 11,247 thousand, i.e. by 3.6% (among other things, due to higher revenues for used
or unused liabilities),
cash handling by PLN 9,437 thousand, i.e. by 28.7% (among other things, higher revenues from cash transactions).
Revenues from asset management and brokerage operations were lower by PLN 33,778 thousand (i.e. 22.0%) primarily due
to lower revenues for the sale of investment fund units and brokerage commissions due to the continued deterioration of
the economy in 2022 (declines in bond and equity prices, rising inflation, continued interest rate rises, concerns about
recession).
At the same time, revenues from account servicing were lower by PLN 6,586 thousand, i.e. by 2.6% (mainly as a result of
lower revenues from fees for high balances on corporate accounts, while revenues related to bailiff seizures, use of
internet banking and mobile payments increased).
The increase in fee and commission expenses was mainly due to higher costs of:
payment and credit card servicing by PLN 14,869 thousand, i.e. by 14.5% (as a result of higher costs of commissions paid
to organizations and entities handling card transactions),
other commissions by PLN 8,637 thousand, i.e. by 18.8% (inter alia as a result of higher provisions for unpaid
commissions),
cash handling by PLN 6,741 thousand, i.e. by 37.6% (i.a. due to higher costs of cash escort),
execution of transfers and electronic banking service by PLN 5,191 thousand, i.e. by 193.5% (as a result of higher costs of
GOonline Business).
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Table 55. Net fee and commission income
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Fee and commission income
lending and leasing activity
323,037
311,790
11,247
3.6%
accounts servicing
247,832
254,418
(6,586)
(2.6%)
cash service
42,312
32,875
9,437
28.7%
cash transfers and e-banking
98,151
83,545
14,606
17.5%
guarantees and documentary operations
54,530
50,555
3,975
7.9%
asset management and brokerage services
120,056
153,834
(33,778)
(22.0%)
payment and credit cards servicing
325,966
246,382
79,584
32.3%
intermediation in the sale of insurance products
153,471
120,143
33,328
27.7%
intermediation in the sale of Bank’s products and
acquisition of Customers
17,374
11,687
5,687
48.7%
other commissions
22,629
19,316
3,313
17.2%
Fee and commission income, total
1,405,358
1,284,545
120,813
9.4%
Fee and commission expenses, total
lending and leasing activity
(1,388)
(408)
(980)
240.2%
accounts servicing
(10,291)
(9,821)
(470)
4.8%
cash service
(24,676)
(17,935)
(6,741)
37.6%
cash transfers and e-banking
(7,873)
(2,682)
(5,191)
193.5%
asset management and brokerage services
(4,929)
(6,622)
1,693
(25.6%)
payment and credit cards
(117,284)
(102,415)
(14,869)
14.5%
intermediation in the sale of insurance products
(22,582)
(19,271)
(3,311)
17.2%
intermediation in the sale of Bank’s products and
acquisition of Customers
(24,719)
(30,341)
5,622
(18.5%)
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
other commissions
(54,701)
(46,064)
(8,637)
18.8%
Fee and commission expenses, total
(268,443)
(235,559)
(32,884)
14.0%
Net fee and commission income
1,136,915
1,048,986
87,929
8.4%
Dividend income
Dividend income in 2022 amounted to PLN 10,817 thousand and resulted from the 2021 profits of companies, in which the
Bank held minority shares, i.e. among others Biuro Informacji Kredytowej S.A. (PLN 3,726 thousand), Krajowa Izba
Rozliczeniowa S.A. (PLN 1,543 thousand), VISA (PLN 397 thousand).
Dividend income in 2021 amounted to PLN 8,550 thousand and resulted from the 2020 profits of companies, in which the
Bank held minority shares, i.e. Biuro Informacji Kredytowej S.A. (PLN 3,722 thousand), Krajowa Izba Rozliczeniowa S.A. (PLN
1,477 thousand), VISA (PLN 458 thousand).
Net trading income and net investment income
Net trading income in 2022 amounted to PLN 754,701 thousand, and was higher by PLN 121,208 thousand, or 19.1%
compared to 2021. The level and volatility of this result are mainly shaped by the result from foreign exchange and
derivative transactions with Clients, the result on transactions entered into by CIB and the Asset and Liability Management
Division and the valuation of equity instruments.
The increase in the result from trading activities was the result of an improvement in the margin realised on foreign
exchange and derivative transactions with Customers, made possible by an increase in cross-selling and Customer up-
selling, as well as higher business activity compared to 2021. This result amounted to 758,119 thousand in 2022 and was
by 183,023 thousand (i.e. 31.8%) higher than that obtained in 2021.
The level of net trading income in 2022 compared to 2021 was negatively affected by, among other things, a deterioration
in the result on FX swaps entered into within the Asset and Liability Management Division and the valuation of equity
instruments. The result on equity instruments at fair value through profit or loss in 2022 was a positive PLN 11,559
thousand, vs: PLN 22,454 thousand in 2021. The deterioration was mainly due to lower valuations of BIK, KIR, VISA and
Mastercard.
The above negative factors were partially neutralised by a PLN 17,705 thousand improvement in the negative valuation of
fair value hedging transactions on the loan portfolio measured at fair value (PLN -36,738 thousand in 2022 compared to
PLN -54,443 thousand in 2021).
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The net investment income in 2022 amounted to PLN 29,227 thousand and was higher by PLN 34,360 thousand compared
to the negative result: PLN -5,133 thousand realised in 2021.
The increase in the result on investing activities in 2022 was mainly related to a PLN 26,951 thousand improvement in the
result on the valuation of the portfolio of loans and advances to Customers measured at fair value through profit or loss,
which amounted to PLN 24,094 thousand, compared to PLN -2,857 thousand in 2021.
Other operating income
Other operating income in 2022 amounted to PLN 203,874 thousand and was lower by PLN 25,821 thousand, or 11.2%,
compared to 2021.
The level of other operating income was influenced mainly by the following:
lower by PLN 33,800 thousand (i.e. by 65.2%) revenues from the sale or liquidation of fixed assets, intangible assets. The
level of these revenues in 2021 was mainly due to the recognition under this item of revenues from the sale of several
branches of the Bank, mostly finalised in Q2,2021 (costs related to these transactions are included in the item Costs of
sale or liquidation of fixed assets in Other operating expenses),
lower by PLN 13,577 thousand (i.e. by 93.1%) profit from sales of goods and services,
lower by PLN 4,895 thousand (i.e. by 19.1%) revenues from recovery of collection costs
higher by PLN 13,710 thousand (i.e. 31.9%) income from the release of provisions for litigation and other liabilities
resulting, inter alia, from the termination in Q1,2022 of former cases concerning 3 corporate Clients. The related
increase in other operating expenses can be seen in Other operating expenses (in Other operating expenses),
higher by PLN 9,045 thousand (i.e. 20.8%) revenue from leasing activities.
Table 56. Other operating income
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
Change y/y
thousand PLN
%
Sale or liquidation of property, plant and equipment and
intangible assets
18,002
51,802
(33,800)
(65.2%)
Release of impairment allowances for other receivables
9,782
9,662
120
1.2%
Sale of goods and services
999
14,576
(13,577)
(93.1%)
Release of provisions for litigation and claims and other
liabilities
56,753
43,043
13,710
31.9%
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
Change y/y
thousand PLN
%
Recovery of debt collection costs
20,700
25,595
(4,895)
(19.1%)
Recovered indemnities
662
465
197
42.4%
Leasing operations
52,450
43,405
9,045
20.8%
Other operating income
44,526
41,147
3,379
8.2%
Other operating income, total
203,874
229,695
(25,821)
(11.2%)
Other operating expenses
Other operating costs in 2022 amounted to PLN 287,701 thousand and was lower by PLN 9,944 thousand (i.e. 3.3%)
compared to 2021.
The level of other operating expenses was influenced mainly by the following:
lower by PLN 30,532 thousand (i.e. by 58.2%) costs of sale or liquidation of fixed assets, intangible assets. The level of
these costs in 2021 was mainly due to the inclusion within this item of costs related to the sale of the Bank's branches
(income related to these transactions is included in Income from sale or liquidation of fixed assets, intangible assets in
Other operating income),
lower costs related to recovery of debt collection by PLN 6,831 thousand (i.e. by 14.7%),
lower by PLN 4,482 thousand (i.e. by 7.1%) the costs of creating provisions for litigation and other liabilities,
higher by PLN 27,627 thousand (i.e. by 33.8%) other operating expenses (resulting, inter alia, from the establishment of
provisions for remuneration to intermediaries for the sale of products of BNP Paribas Leasing Services Sp. z o.o. and
Arval Service Lease Polska Sp. z o.o. and from the termination in Q1 2022 of old cases concerning 3 corporate Customers,
the related increase in other operating income is visible in the item Release of provisions for litigation and other
liabilities in Other operating income),
higher costs of leasing operations by PLN 9,261 thousand (i.e. by 39.5%).
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Table 57. Other operating expenses
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
Change y/y
thousand PLN
%
Loss on sale or liquidation of property, plant and
equipment and intangible assets
(21,953)
(52,485)
30,532
(58.2%)
Created impairment allowances for other receivables
(13,328)
(13,515)
187
(1.4%)
Provisions for litigation and claims and other liabilities
(58,520)
(63,002)
4,482
(7.1%)
Debt collection
(39,739)
(46,570)
6,831
(14.7%)
Donations made
(6,661)
(5,983)
(678)
11.3%
Costs of leasing operations
(32,733)
(23,472)
(9,261)
39.5%
Costs of compensations, penalties and fines
(5,356)
(10,834)
5,478
(50.6%)
Other operating expenses
(109,411)
(81,784)
(27,627)
33.8%
Other operating expenses, total
(287,701)
(297,645)
9,944
(3.3%)
Net impairment allowance on financial assets and provisions for contingent liabilities
The result of impairment losses on financial assets and provisions for contingent liabilities in 2022 was negative and
amounted to PLN 275,010. Its impact on the Group’s result was higher by PLN 8,825 thousand, i.e. by 3.3% compared to
2021.
Considering the main operating segments
1
:
Retail and Business Banking segment recorded an increase (deterioration) in the negative result by PLN 190,698
thousand,
SME Banking – positive result and increase of result by PLN 91,282 thousand,
Corporate Banking (including CIB) – positive result and increase of result by PLN 88,098 thousand,
Other banking activities recorded positive result and improvement of result by PLN 2,495 thousand.
In 2022, the materialisation of the cost of risk remained low, influenced by the good quality of loan servicing and the
associated level of Phase 3 entries. At the same time, the result from impairment of financial assets and provisions for
contingent liabilities was significantly affected by the release of provisions for unrealised credit losses related to the
1
data based on the segmentation Note 54 included in the Consolidated report of BNP Paribas Bank Polska S.A. Capital Group as at 31 December 2022
coronavirus pandemic and the creation of provisions related to the expectation of the impact of the current
macroeconomic and geopolitical situation on the quality of the loan portfolio in the future.
In 2022, provisions for unrealised credit losses related to the potential negative impact of COVID were released. Due to the
stabilisation of the pandemic situation and the expected limited impact of COVID in subsequent periods, the Group
released provisions of PLN 200,130 thousand on this account
At the same time, the Group created additional provisions for unrealised losses for the impact of economic forecasts in the
amount of PLN 207,844 thousand (of which: provisions related to the update of forecasts of macroeconomic variables
included in the used IFRS9 model in the amount of PLN 65,374 thousand, and additional provisions related to risk factors
not directly included in the macroeconomic model in the amount of PLN 142,470 thousand.
The total impact of provisions made for unrealised credit losses on the result on impairment of financial assets and
provisions for contingent liabilities was negative and amounted to PLN 7,714 thousand.
In addition, the cost of risk in 2022 was influenced by:
the release of the provisions created in 2021, amounting to PLN 65,170 thousand, due to the reversal of changes in
legislation, which had the effect of lowering the expected recovery levels on the portfolio of loans to farmers
(significantly affecting the result in the institutional loans segment),
increasing the provision related to Customers with the highest exposure to turbulence in the economic environment by
PLN 9,700 thousand. The Group released provisions created due to the negative impact of energy prices in 2021 in the
amount of PLN 15,300 thousand reflecting this risk directly in the assessment of individual CTB/SME Clients. At the same
time, PLN 25,000 thousand provision for Customers most exposed to turbulence in the economic environment was
created.,
adjusting the PD/LGD parameters for exposures transferred to Phase 2 as part of the identification of vulnerable
Customers in the portfolio of loans secured by real estate in PLN. This change resulted in the creation of provisions in
the amount of PLN 76,901 thousand.
introducing significant changes in the approach used to classification, estimation of write-downs as well as in the IFRS9
parameter models resulting in the creation of provisions in the amount of PLN 26,207 thousand, including:
- identification of exposures particularly exposed to turbulence in the economic environment (due to the ongoing war in
Ukraine, economic sanctions against Russia and Belarus, and the current economic situation). These exposures were
reclassified to Phase 2, as a result of which the Group recognized PLN 48,255 thousand additional provisions,
- implementation of a rationale for identifying a significant increase in credit risk (Phase 2) based on an assessment of
the relative change in the PD lifetime parameter,
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- adaptation of the form of the LGD model to the shape of the recovery process and inclusion of additional dimensions
differentiating the LGD level for Phase 1 and Phase 2 exposures,
- implementation of an updated form of the CCF model,
- implementation of a new Default Rate macroeconomic model for companies using full accounting,
- implementation of the LGD model for leasing exposures replacing the expert parameters previously used for this
segment,
- implementation of additional PD parameter grouping based on rating for leasing exposures.
positive impact from the sale of debt portfolios in the amount of PLN 34,044 thousand.
In 2022, the Group concluded agreements for the sale of the loan portfolio from the retail, SME and corporate portfolios.
The gross carrying amount of the sold portfolio measured at amortised cost was PLN 387,666 thousand, the amount of
impairment losses created was PLN 313,497 thousand. The contractual price for the sale of these portfolios was set at PLN
108,213 thousand. The net impact on the Bank's result from the sale of the portfolios amounted to PLN 34,044 thousand.
In 2021, the Group entered into agreements for the sale of a portfolio of loans from the retail, SME and corporate
portfolios. The gross carrying amount of the sold portfolio measured at amortised cost was PLN 711,954 thousand, the
amount of impairment losses created was PLN 638,727 thousand. The contractual price for the sale of these portfolios was
set at PLN 158,147 thousand. The net impact on the Group's result from the sale of the portfolios amounted to PLN 84,920
thousand.
The cost of credit risk, expressed as the ratio of net impairment losses to the average gross loans and advances to
Customers measured at amortized cost (calculated on the basis of balances at the end of the quarters) amounted to 0.30%
in 2022 and was by 2 bps lower than in 2021 (0.32%). It is estimated that excluding the impact of debt sales, the cost of
risk would have been 0.33% in 2022 and 0.43% in 2021.
General administrative expenses, depreciation and amortization
General administrative expenses (including depreciation and amortization) of the Group amounted to PLN 3,038,456
thousand and were higher by PLN 494,927 thousand, or 19.5%, compared to 2021.
The largest y/y increase in costs by type by PLN 206,531 thousand was in contributions to the Commercial Banks
Protection Scheme (System Ochrony Banków Komercyjnych S.A., SOBK or IPS) – a company established in June 2022, of
which the Bank is a shareholder. A Support Fund has been established within the company to finance the tasks of the
system.
At the beginning of 2022, the BFG Council set the amount of contributions to the BFG for the banking sector at PLN 1,693
million for the banks' forced restructuring fund against PLN 1,230 million in 2021 and PLN 2,008 million for the banks'
guarantee fund against PLN 1,000 million in 2021. In October 2022. The BFG Council reduced the amount of contributions
to the guarantee fund to PLN 502 million. As a result, total contributions for the banking sector in 2022 are 1.6% lower
compared to the previous year.
Table 58. General administrative expenses, depreciation and amortization
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
Change y/y
thousand
PLN
%
Personnel expenses
(1,261,353)
(1,183,578)
(77,775)
6.6%
Marketing expenses
(84,532)
(102,155)
17,623
(17.3%)
IT and telecom expenses
(267,868)
(220,753)
(47,115)
21.3%
Short-term lease and operating costs
(68,348)
(63,944)
(4,404)
6.9%
Other non-personnel expenses
(528,397)
(384,354)
(144,043)
37.5%
Business travels
(14,300)
(6,773)
(7,527)
111.1%
ATM and cash handling expenses
(26,045)
(22,746)
(3,299)
14.5%
Outsourcing costs related to leasing operations
(2,623)
(2,915)
292
(10.0%)
Contributions to Bank Guarantee Fund
(152,340)
(143,352)
(8,988)
6.3%
Fees for the Commercial Banks Protection Scheme
(206,531)
-
(206,531)
-
Polish Financial Supervision Authority fee
(14,370)
(13,406)
(964)
7.2%
General administrative expenses, total
(2,626,707)
(2,143,976)
(482,731)
22.5%
Depreciation and amortization
(411,749)
(399,553)
(12,196)
3.1%
Total expenses
(3,038,456)
(2,543,529)
(494,927)
19.5%
Costs of fees for the BFG, charged to the Bank in 2022, amounted to PLN 152,340 thousand and were higher by PLN 8,988
thousand compared to the previous year, included:
annual contribution to the banks' forced restructuring fund - PLN 125,919 thousand (in 2021 - PLN 90,147 thousand);
these contributions are paid in the first quarter of the year,
contribution to the banks' guarantee fund - PLN 26,421 thousand (in 2021 - PLN 53,205 thousand); in Q2 2022, the BFG
decided to suspend the collection of this contribution.
An increase in the level of costs y/y was also recorded in the following categories:
other material costs - an increase of PLN 144,043 thousand, of which:
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- fee for the Borrowers' Support Fund (BSF) increased y/y by PLN 76,394 thousand, as a result of the BSF Board setting
an additional amount for 2022 of PLN 1,400 million,
- advisory services provided by the Group increased by PLN 45,834 thousand (PLN 54,319 thousand in 2022, PLN 8,485
thousand in 2021),
- material costs incurred by the leasing company higher by PLN 17,062 thousand due to the increase in the scale of
operations,
- costs of meetings (working, integration) and briefings increased by PLN 11,064 thousand. In 2021, their scale was
limited due to the COVID-19 pandemic (meetings were mainly held online);
personnel costs - an increase of PLN 77,775 thousand, i.e. by 6.6% - the increase in salary costs by PLN 60,594 thousand
is mainly due to an increase in basic salaries from March 2022, the implementation of salary regulations related to the
salary gap (Gender Pay Gap) and retention raises for key employees in the fourth quarter of 2022, while reducing the
Bank's bonus costs (by PLN 18,783 thousand). The aforementioned measures increased the cost of salary surcharges by
PLN 14,894 thousand,
IT and telecommunications costs - an increase of PLN 47,115 thousand (by 21.3%) as a result of an increase in the cost
of software maintenance contracts, higher maintenance costs for the main banking and BNP group systems and an
increase in cyber security costs due to the war in Ukraine,
travel costs - an increase of PLN 7,527 thousand, as a result of a larger scale of working meetings (including team-
building meetings), briefings and onsite training compared to 2021.
Table 59. Employee benefit costs
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
Change y/y
thousand
PLN
%
Salary costs
(1,005,932)
(945,338)
(60,594)
6.4%
Salary surcharges
(181,716)
(166,822)
(14,894)
8.9%
Employee benefits
(46,325)
(47,380)
1,055
(2.2%)
Costs of provision for restructuring
(775)
(1,091)
316
(29.0%)
Costs of provision for future liabilities due to unused leave
and retirement benefits
(9,885)
(8,755)
(1,130)
12.9%
Charges to the Company Social Benefits Fund
(14,225)
(13,372)
(853)
6.4%
Other
(2,495)
(820)
(1,675)
204.3%
Total employee benefits costs
(1,261,353)
(1,183,578)
(77,775)
6.6%
A decrease of PLN 17,623 thousand y/y was recorded in marketing costs, which is mainly due to a reduction in costs for
promotion and media advertising.
Depreciation and amortization expenses in 2022 amounted to PLN 411,749 thousand and were higher by PLN 12,196
thousand (i.e. by 3.1%) compared to 2021. The increase was mainly due to the Bank's further transformation and
digitalization, as well as capital expenditures incurred for this purpose. Depreciation and amortisation costs at Group
companies remained at a comparable level y/y.
The Bank's capital expenditure in 2022 amounted to PLN 367,685 thousand and was higher by PLN 44,768 thousand, or
13.9%, compared with the same period last year. The volume of capital expenditure is adjusted to the Bank's current needs
and capabilities. All projects are analysed from the point of view of rationality and impact on the financial and business
situation of the Bank and the Group.
Statement of comprehensive income
The Group's total income in 2022 was negative at PLN -112,667 thousand, compared to negative PLN -675,157 thousand
in 2021. (an improvement of PLN 562,490 thousand).
This was a result of a PLN 370,377 thousand improvement in the valuation of financial assets measured by other
comprehensive income (negative impact of PLN -599,039 thousand in 2022 vs. PLN -969,416 thousand in 2021. This
improvement is related to the suspension of the monetary tightening cycle by the Monetary Policy Council.
The second element that improved the Group's total income was the net financial result, which at the end of 2022 was
higher by PLN 265,199 thousand (i.e. 150.4%) compared to the end of 2021.
Table 60. Statement of comprehensive income
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Net profit
441,497
176,298
265,199
150.4%
Other comprehensive income
Items that will be reclassified subsequently to profit or
loss upon fulfilment of certain conditions
(553,251)
(854,322)
301,071
(35.2%)
Mark-to-market of assets measured at fair value
through other comprehensive income
(599,039)
(969,416)
370,377
(38.2%)
Deferred tax
113,817
184,189
(70,372)
(38.2%)
Valuation of derivatives in cash flow hedge accounting,
gross
(83,987)
(85,303)
1,316
(1.5%)
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thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Deferred tax on valuation of gross cash flow hedging
derivatives
15,958
16,208
(250)
(1.5%)
Items that will not be reclassified subsequently to profit
or loss
(913)
2,867
(3,780)
-
Actuary valuation of employee benefits
(1,129)
3,540
(4,669)
-
Deferred tax on gross actuarial valuation of employee
benefits
216
(673)
889
-
Other comprehensive income (net of tax)
(554,164)
(851,455)
297,291
(34.9%)
Total comprehensive income
(112,667)
(675,157)
562,490
(83.3%)
Statement of financial position
Assets
The Group's total assets as of the end of 2022 amounted to PLN 151,517,069 thousand, and was higher by PLN 19,739,588
thousand, or 15.0%, compared to the end of 2021.
The most important change in the Group's asset structure compared to the end of 2021 was a decrease in the share of the
loan portfolio by 6.1 p.p. (the sum of portfolios measured at amortized cost and at fair value) with a 5.8 p.p. increase in
receivables from banks and a 1.5 p.p. increase in shares of the securities portfolio.
The Group's asset structure was dominated by loans and advances to Customers (the sum of portfolios measured at
amortized cost and measured at fair value), which accounted for 59.4% of total assets at the end of 2022, compared to
65.5% at the end of 2021. The increase in the volume of net loans and advances amounted to PLN 3,740,134 thousand (i.e.
by 4.3%), and concerned both the Institutional Clients portfolio (+8.2%). The retail Clients' portfolio decreased by 0.6%
compared to the end of 2021 (including mortgage loans decrease by 1.0%).
The second largest asset item was securities, which accounted for 26.3% of total assets at the end of 2022 (at the end of
2021: 24.9%). As of 31 December 2022, the value of securities increased by PLN 7,109,944 thousand (i.e. by 21.7%)
compared to the end of 2021. The growth in the portfolio mainly concerned securities measured at fair value through
other comprehensive income (bonds issued by the National Bank of Poland).
The share of receivables from banks (the third largest asset item) amounted to 7.8% (at the end of 2021: 2.0%). Their value
increased by PLN 9,185,039 thousand, or 351.2%. The share of the cash and balances position in the Central Bank
decreased from 3.5% to 1.8% (in value by PLN 1,913,170 thousand, i.e. by 41.3%).
Table 61. Assets
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Cash and balances at Central Bank
2,718,307
4,631,477
(1,913,170)
(41.3%)
Amounts due from banks
11,800,189
2,615,150
9,185,039
351.2%
Derivative financial instruments
3,224,272
1,901,919
1,322,353
69.5%
Fair value adjustment of hedged and hedging items
33,025
65,465
(32,440)
(49.6%)
Loans and advances to Customers measured at amortised
cost
89,090,317
85,080,454
4,009,863
4.7%
Loans and advances to Customers measured at fair value
through profit or loss
949,298
1,219,027
(269,729)
(22.1%)
Debt securities measured at amortised cost
22,167,261
23,268,041
(1,100,780)
(4.7%)
Financial instruments measured at fair value through
profit or loss
316,593
347,309
(30,716)
(8.8%)
Debt securities measured at fair value through other
comprehensive income
17,384,793
9,143,353
8,241,440
90.1%
Intangible assets
821,106
728,475
92,631
12.7%
Property, plant and equipment
1,069,429
1,243,523
(174,094)
(14.0%)
Deferred tax assets
966,436
876,599
89,837
10.2%
Current tax assets
14,107
94
14,013
14 907.4%
Other assets
961,936
656,595
305,341
46.5%
Total assets
151,517,069
131,777,481
19,739,588
15.0%
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Loan portfolio
Structure of loan portfolio
At the end of 2022, gross loans and advances to Customers (the sum of portfolios measured at amortized cost and
measured at fair value) amounted to PLN 93,119,971 thousand and increased by PLN 3,733,602 thousand, or 4.2%,
compared to the end of 2021.
The gross portfolio of loans and advances measured at amortized cost in the analysed period amounted to PLN 92,096,240
thousand and increased by PLN 4,053,273 thousand, or 4.6%, compared to the end of 2021.
Table 62. Structure of loan portfolio measured at amortised cost
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
Change y/y
thousand
PLN
%
Business entities with the exception of farmers
39,978,061
35,599,112
4,378,949
12.3%
Farmers
6,835,131
7,755,784
(920,653)
(11.9%)
Retail Customers
38,843,860
38,817,716
26,144
0.1%
- mortgage loans
26,651,564
26,710,997
(59,433)
(0,2%)
in PLN
22,526,701
22,141,389
285,312
1,7%
in foreign currencies
4,124,863
4,569,608
(444,745)
(9,7%)
- cash loans
8,052,253
7,701,994
350,259
4,5%
- other retail loans
4,140,043
4,404,725
(264,682)
(6,0%)
Lease receivables
5,527,297
4,989,351
549,025
10,8%
Public sector
58,956
84,487
(25 531)
(30,2%)
Other financial entities
852,935
796,517
45,339
7,1%
Loans and advances, gross
92,096,240
88,042,967
4,053,273
4.6%
The gross value of portfolio of loans and advances to business entities (excluding farmers) amounted to PLN 39,978,061
thousand (an increase by PLN 4,378,949 thousand, or 12.3%, compared to the end of 2021). Their share in the analysed
loan portfolio at the end of 2022 was 43.4% (+3.0 p.p. compared to the end of 2021). Almost half of this portfolio (46.0%)
are current loans (-3.2 p.p compared to 2021).
Chart 15. Gross loans and advances measured at amortised cost – structure by entity type
Gross loans and advances to retail Customers amounted to PLN 38,843,860 thousand at the end of 2022 (an increase by
PLN 26,144 thousand, or 0.1%, compared to the end of 2021). Their share in the loan portfolio measured at amortized cost
in the analysed period was 42.9% (i.e. -1.9 p.p. compared to the end of 2021). More than two-thirds (68.6%) of the credit
exposure of retail Customers are mortgage loans, which amounted to PLN 26,651,564 thousand at the end of 2022. In the
structure of mortgage loans, 84.5% are loans granted in PLN, while 15.5% are loans granted in CHF (compared to the end
of last year, the share of CHF fell by 1.6 p.p.).
The volume of loans granted to individual farmers at the end of 2022 amounted to PLN 6,835,131 thousand, registering a
11.9% decrease compared to December 2021.
Lease receivables volume amounted to PLN 5,538,376 thousand (an increase of 11.0% compared to the end of 2021). Their
share in the loan portfolio measured at amortized cost amounted to 6.0% (compared 5.7% at the end of 2021).
The volume of loans granted to non-bank financial entities and budget sector institutions amounted to a total of PLN
900,812 thousand, registering a 2.2% decrease compared to December 2021.
Business
entities with
the exception
of farmers,
40.4%
Retail
customers,
44.1%
Farmers,
8.8%
Lease
receivables,
5.7%
Public
sector, 0.1%
Non-
banking
financial
entities,
0.9%
12M 2021
PLN 88,043
million
Business
entities with
the exception
of farmers,
43.4%
Retail
customers,
42.2%
Farmers,
7.4%
Lease
receivables,
6.0%
Public
sector, 0.1%
Non-
banking
financial
entities,
0.9%
12M 2022
PLN 92,096
million
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Quality of loan portfolio
The ratio of impaired exposures to gross loans and advances to Customers and measured at amortised cost amounted to
3.3 % at the end of 2022, a decrease compared to the end of 2021 by 0.3 p.p. Impairment coverage of impaired exposures
was 59.6% at the end of 2022 and increased by 2.2 p.p. compared to 2021.
Table 63. Write-off coverage of the loan portfolio measured at amortised cost
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Total gross loans and advances to Customers
92,096,240
88,042,967
4,053,273
4.6%
Impairment allowances
(3,005,923)
(2,962,513)
(43,410)
1.5%
Total net loans and advances to Customers
89,090,317
85,080,454
4,009,863
4.7%
Exposures without impairment triggers
Gross balance sheet exposure
89,074,361
84,836,248
4,238,113
5.0%
Allowance
(1,204,666)
(1,123,186)
(81,480)
7.3%
Net balance sheet exposure
87,869,695
83,713,062
4,156,633
5.0%
Impaired exposures (stage 3)
Gross balance sheet exposure
3,021,879
3,206,719
(184,840)
(5.8%)
Impairment allowance
(1,801,257)
(1,839,327)
38,070
(2.1%)
Net balance sheet exposure
1,220,622
1,367,392
(146,770)
(10.7%)
Ratios
31.12.2022
31.12.2021
change
Share of impaired exposures in gross portfolio
3.3%
3.6%
(0.3 p.p.)
Coverage with impairment allowances
(59.6%)
(57.4%)
2.2 p.p.
Table 64. Quality of the loan portfolio measured at amortised cost
At the end of 2022, the value of collateral held for Customers' loans amounted to PLN 1,953,998 thousand. Details of
collateral are included in Note 55.2 of the Consolidated Financial Statements for the year ended 31 December 2022.
thousand PLN
31.12.2022
31.12.2021
Total gross
of which:
impaired
% share
Total gross
of which:
impaired
% share
Institutional loans, excluding farmers
40,889,952
1,293,814
3.2%
36,480,116
1,240,992
3.4%
Farmers
6,835,131
578,257
8.5%
7,755,784
633,557
8.2%
Retail Customers
38,843,860
997,425
2.6%
38,817,716
1,127,343
2.9%
- mortgages
26,651,564
481,414
1.8%
26,710,997
522,335
2.0%
in PLN
22,526,701
173,069
0.8%
22,141,389
167,127
0.8%
in other currencies
4,124,863
308,345
7.5%
4,569,608
355,208
7.8%
- cash loans
8,052,253
408,864
5.1%
7,701,994
489,948
6.4%
- other retail loans
4,140,043
107,147
2.6%
4,404,725
115,060
2.6%
Lease receivables
5,527,297
152,383
2.8%
4,989,351
204,827
4.1%
Gross loans and advances
92,096,240
3,021,879
3.3%
88,042,967
3,206,719
3.6%
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Securitization of loan portfolio
In December 2017, the Group completed a transaction to securitize a portfolio of cash and auto loans using a subsidiary
BGZ Poland ABS1 DAC (SPV). The concluded transaction is a traditional securitization involving the transfer of ownership
of the securitized receivables to BGZ Poland ABS1 DAC (SPV), based in Ireland. The revolving period was 24 months and
ended in December 2019. The transaction is subject to amortization from January 2020.
As a result of the securitization, the Group obtained financing for its operations in exchange for the surrender of rights to
future flows arising from the securitized loan portfolio with a value as of 22/11/2017 (cut-off) of PLN 2,300,471 thousand.
The maximum date for full redemption of the bonds and repayment of the loan is 27.04.2032.
The SPV issued bonds on the basis of the securitized assets with a total value of PLN 2,180,850 thousand and received a
loan in the amount of PLN 119,621 thousand, which were secured by a registered pledge on the rights to cash flows from
the securitized assets. At the end of 2022, the value of the bonds and the loan was approximately PLN 384,417 thousand.
The main benefit of the transaction is the positive impact on capital adequacy ratios and the improvement of liquidity and
diversification of financing sources.
In light of the provisions of IFRS 9, the contractual terms of the securitization do not meet the prerequisites for removing
the securitized assets from the financial statements. Accordingly, the Group recognizes the securitized assets under Loans
and advances to Customers as of 31 December 2022 at a gross value of PLN 409,057 thousand.
The Group acts as servicer in the transaction.
Liabilities and equity
As at the end of 2022, the Group's total liabilities amounted to PLN 140,254,848 thousand and were by PLN 19,838,998
thousand, or 16.5%, higher than at the end of 2021. The share of liabilities in the Group's total liabilities and equity was
92.6% in the period under review (+1.2 p.p. compared to the end of 2021).
The structure of liabilities is dominated by amounts due to Customers. Their share as of the end of 2022 amounted to
85.6% and increased by 1.6 p.p. compared to the end of 2021. In value terms, the volume of these liabilities increased by
PLN 18,928,102 thousand, i.e. by 18.7% compared to December 2021, and amounted to PLN 120,021,043 thousand.
A decrease in the share of total liabilities by 1.6 p.p. to 5.1% was recorded by amounts due to banks. Their value amounted
to PLN 7,158,024 thousand and was lower compared to the end of 2021 by PLN 854,220 thousand (i.e. by 10.7%).
The Group's equity as of the end of 2022 amounted to PLN 11,262,221 thousand and decreased compared to the end of
December 2021 by 0.9% i.e. by PLN 99,410 thousand. The share of total shareholders' equity in the Group's total liabilities
and equity amounted to 7.4% (compared to 8.6% at the end of 2021).
Table 65. Liabilities and equity
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
Change y/y
thousand
PLN
%
Amounts due to Central Bank
8,713
-
8,713
-
Amounts due to banks
7,158,024
8,012,244
(854,220)
(10.7%)
Derivative financial instruments
3,147,855
1,918,032
1,229,823
64.1%
Fair value adjustment of hedging instruments and hedged
items
(451,646)
44,107
(495,753)
-
Amounts due to Customers
120,021,043
101,092,941
18,928,102
18.7%
Securities issued
364,633
722,628
(357,995)
(49.5%)
Subordinated liabilities
4,416,887
4,334,572
82,315
1.9%
Lease liabilities
718,892
860,004
(141,112)
(16.4%)
Other liabilities
2,423,182
1,556,289
866,893
55.7%
Current income tax liabilities
223,527
175,681
47,846
27.2%
Provisions
2,223,738
1,699,352
524,386
30.9%
Total liabilities
140,254,848
120,415,850
19,838,998
16.5%
Share capital
147,593
147,519
74
0.1%
Supplementary capital
9,110,976
9,110,976
-
-
Other reserve capital
3,142,098
2,946,115
195,983
6.7%
Revaluation reserve
(1,149,786)
(595,622)
(554,164)
93.0%
Retained earnings
11,340
(247,357)
258,697
-
- previous years’ results
(430,157)
(423,655)
(6,502)
1.5%
- net profit for the period
441,497
176,298
265,199
150.4%
Total equity
11,262,221
11,361,631
(99,410)
(0.9%)
Total liabilities and equity
151,517,069
131,777,481
19,739,588
15.0%
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Amounts due to Customers
At the end of December 2022, amounts due to Customers amounted to PLN 120,021,043 thousand and were higher by PLN
18,928,102 thousand or 18.7% compared to the end of 2021.
In terms of entities, the increase mainly concerned amounts due to business entities (balance as at 31.12.2022: PLN
66,040,455 thousand), the volume of which increased by PLN 12,622,040 thousand, i.e. by 23.6% compared to the balance
as at the end of 2021, mainly as a result of an increase in term deposits (by PLN 10,700,641 thousand). The share of this
segment in the structure of total amounts due to Customers increased to 55.0% compared to 52.8% at the end of 2021.
An increase in deposit volumes was also recorded in the group of individual Customers. Their balance as at the end of
December 2022 amounted to PLN 49,020,456 thousand and was by PLN 4,248,486 thousand (or 9.5%) higher than at the
end of the previous year. At the same time, the share of individual Clients' deposits in the total liabilities to Clients
decreased to 40.8% from 44.3% at the end of 2021.
The volume of liabilities to institutions of the budget sector also increased to PLN 2,581,919 thousand, a change of 62.7%
compared to the end of 2021.
Deposits from non-bank financial entities increased by PLN 1,062,492 thousand, or 80.8%, compared to the end of last year
and amounted to PLN 2,378,213 thousand at the end of 2022.
Chart 16. Amounts due to Customers – structure by entity type
Table 66. Amounts due to Customers by products
31.12.2022
31.12.2021
thousand PLN
% share
thousand
PLN
% share
Current accounts
81,049,341
67.5%
88,332,287
87.4%
Term deposits
37,208,104
31.0%
11,398,894
11.3%
Loans and advances received
491,823
0.4%
101,666
0.1%
Other liabilities
1,271,775
1.1%
1,260,094
1.2%
Total amounts due to Customers, including:
120,021,043
100.0%
101,092,941
100.0%
deposits
119,529,220
99.6%
100,991,275
99.9%
The share of current accounts in the structure of amounts due to Customers at the end of December 2022 amounted to
67.5%, registering a decrease of 19.8 p.p. compared to the end of 2021. Funds deposited in current accounts amounted to
PLN 81,049,341 thousand and decreased by PLN 7,282,946 thousand, or 8.2%. The decrease was mainly due to decreases
in liabilities to retail Customers (by PLN 9,248,287 thousand, i.e. by 24.1%) partially offset by a slight increase in amounts
owed to corporates (by PLN 1,925,739 thousand, i.e. by 4.1%).
The share of term deposits in the structure of amounts due to Customers in the analysed period amounted to 31.0% and
increased by 19.7 p.p. compared to the end of 2021. In value terms, term deposits increased by PLN 25,809,210 thousand
to PLN 37,208,104 thousand, an increase of 226.4% compared to December 2021. The increase in the share of term
deposits is the result of a significant rise in the level of interest rates.
The share of other liabilities and loans and advances received in total in the structure of liabilities to Customers amounted
to 1.5%, increasing by 0.1 p.p. compared to the end of 2021. Their total volume amounted to PLN 1,763,598 thousand.
Non-banking
financial
entities; 1.3%
Retail
customers;
44.3%
Business
entities;
52.8%
Budget sector
institutions;
1.6%
12M 2021
PLN 101,093
million
Non-banking
financial
entities; 2.0%
Retail
customers;
40.8%
Business
entities;
55.0%
Budget
sector
institutions;
2.2%
12M 2022
PLN
120,021
million
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The geographical structure of liabilities to the Bank's Customers at the end of 2022 by major region, in management
terms, is presented below.
Segment/region
31.12.2022
Retail and Business Banking
50.0%
Centre
13.2%
North
7.9%
South
10.7%
East
9.3%
West
8.9%
Corporate Banking and SME
48.4%
Central
7.2%
Southern
33.0%
Western
8.3%
Others
1.6%
Equity
As at 31 December 2022, the Group's equity amounted to PLN 11,262,221 thousand and was by PLN 99,410 thousand, i.e.
0.9% lower than at the end of 2021.
Pursuant to Resolution No. 6 of the Bank's Annual General Meeting on 27 of June 2022, the Bank's profit after tax (net
profit) for the completed financial year 2021 in the amount of PLN 184,526.041 was fully transferred to reserve capital.
Contingent liabilities
The table below presents the value of the items of liabilities given and received.
Table 67. Contingent liabilities
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
Change y/y
thousand
PLN
%
Contingent liabilities granted
42,977,848
43,750,937
(773,089)
(1.8%)
funding liabilities
30,486,679
33,487,647
(3,000,968)
(9.0%)
guarantee liabilities
12,491,169
10,263,290
2,227,879
21.7%
Contingent liabilities received
58,068,966
36,321,578
21,747,388
59.9%
liabilities of a financial nature
14,511,914
13,592,590
919,324
6.8%
liabilities of a guarantee nature
43,557,052
22,728,988
20,828,064
91.6%
The amount of long-term liabilities granted as at 31.12.2022 amounts to PLN 18,279,953 thousand (31.12.2021 amounted
to PLN 18,813,999 thousand), while long-term liabilities received as at 31.12.2022 amounted to PLN 49,935,837 thousand
(31.12.2021 amounted to PLN 24,046,996 thousand).
Own funds and capital ratios
The calculation of the capital adequacy of the Group as at 31 December 2022 has been performed applying the provisions
of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013. (CRR) on prudential
requirements for credit institutions and investment firms, as amended by Regulation (EU) 2019/876 of the European
Parliament and of the Council of 20 May 2019 (CRR2) in relation to leverage ratio, net stable funding ratio, own funds and
minimum eligible liabilities requirements, counterparty credit risk, market risk, exposures to central counterparties,
exposures to collective investment undertakings, large exposures, reporting and disclosure requirements.
On the 12th of December 2017, the European Parliament and the Council of the EU adopted Regulation No 2017/2395
amending Regulation (EU) No 575/2013 as regards transitional arrangements for mitigating the impact of the introduction
of IFRS 9 on own funds and for treating as large exposures certain exposures to public sector entities denominated in the
domestic currency of any Member State. The regulation was effective from 1 January 2018. The Group applied the
transitional provisions provided by the regulation, with the result that the full impact of the implementation of IFRS 9 was
not considered for the purposes of assessing the Group's capital adequacy.
On 27 June 2020, Regulation (EU) 2020/873 of the European Parliament and of the Council of 24 June 2020, amending
Regulations (EU) No 272/2013 and (EU) 2019/876 as regards certain adjustments in response to the COVID-19 pandemic,
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entered into force, allowing, inter alia, a reduction in risk weights for a portion of SME loans, a temporary partial exclusion
from the calculation of Common Equity Tier 1 items of the amount of unrealised gains and losses measured at fair value
through other comprehensive income in relation to the COVID-19 pandemic.
As of 31 December 2022, the adjustment related to the temporary partial exclusion from the calculation of Common Equity
Tier 1 capital items of the amount of unrealized gains and losses measured at fair value through other comprehensive
income in connection with the COVID-19 pandemic was PLN 373,716 thousand.
On 23 December 2020, Commission Delegated Regulation (EU) 2020/2176 of 12 November 2020, amending Delegated
Regulations (EU) No 241/2014 with regard to the deduction of software assets from Common Equity Tier 1 items, entered
into force
As at 31 December 2022, the adjustment in Common Equity Tier 1 capital related to other intangible assets amounted to
PLN 388,016 thousand.
Pursuant to the Resolution of the Annual General Meeting of the Bank dated 27 June 2022, the entire profit of the Bank for
2021, in the amount of PLN 184,526 thousand, was allocated to reserve capital.
The Group's total capital ratio at 31 December 2022 was 15.55%, a decrease of 1.36 p.p. compared to December 2021. The
Group's consolidated Common Equity Tier 1 (CET I) capital ratio and consolidated Tier 1 (Tier 1) capital ratio at 31
December 2022 were identical at 11.28% (decrease by.1.05 p.p. compared to the year-end 2021).
The decrease in capital adequacy ratios was mainly due to a deterioration in the result of unrealised gains and losses
measured at fair value through other comprehensive income, while the amount of risk-weighted exposure increased.
Total own funds at 31 December 2022 decreased by PLN 660,565 thousand compared to 31 December 2021.
Total risk exposure as at 31 December 2022 amounted to PLN 95,456,297 thousand and increased by PLN 3,805,201
thousand compared to 31 December 2021.
Table 68. Own funds and capital ratios of the Group
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
Change y/y
thousand
PLN
%
Tier I capital
– share capital
147,593
147,519
74
0.1%
– supplementary capital
7,259,316
7,259,316
0
0.0%
– reserve capital
4,308,272
4,120,622
187,650
4.6%
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
Change y/y
thousand
PLN
%
– funds for general banking risk
629,987
627,154
2,833
0.5%
– intangible assets
(439,502)
(378,273)
(61,229)
(16.2%)
– other components of equity included in Tier I capital
(1,142,526)
(472,551)
(669,975)
(141.8%)
Total Tier I capital
10,763,140
11,303,787
(540,647)
(4.8%)
Tier 2 capital
– subordinated liabilities classified as Tier II capital
4,078,993
4,198,911
(119,918)
(2.9%)
Total own funds
14,842,133
15,502,698
(660,565)
(4.3%)
Risk exposure due to:
– credit risk
85,338,706
81,887,761
3,416,945
4.2%
– market risk
1,307,210
1,345,487
(38,227)
(2.8%)
– operational risk
8,787,516
8,387,983
399,533
4.8%
– CVA adjustment
56,865
29,865
27,000
90.4%
Total risk exposure
95,456,297
91,651,096
3,805,201
4.2%
Group’s ratios
31.12.2022
31.12.2021
change
Total Capital Ratio (TCR)
15.55%
16.91%
(1.36 p.p.)
Tier I Capital Ratio
11.28%
12.33%
(1.05 p.p.)
Pursuant to the Act of 5 August 2015 on macroprudential supervision over the financial system and crisis management in
the financial sector (Journal of Laws 2015, item 1513, as amended), a capital conservation buffer of 2.5% was introduced
starting from 1 January 2019.
The Polish Financial Supervision Authority in a communication dated 8 November 2021, announced that, based on the
provisions of the Act of 5 August 2015 on macroprudential supervision of the financial system and crisis management in
the financial system and after taking into account the opinion of the Financial Stability Committee, confirmed the
identification of ten banks as other systemically important institutions (O-SIIs).
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As a result of the review, the Authority concluded that there were no grounds for revoking or amending the decision of 4
October 2016, as amended by the Commission's decision of 19 December 2017, to impose on the Bank (on a consolidated
and individual basis) an Other Systemically Important Institution buffer equivalent to 0.25% of the total risk exposure
amount calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013.
The Polish Financial Supervisory Authority, in a letter dated 23 December 2022, recommended limiting the risks inherent
in the Bank's activities by having the Bank, maintain own funds to cover an additional capital charge to absorb potential
losses arising from stress events, of 0.80 p.p. at the individual level and 0.77 p.p. at the consolidated level above the total
capital ratio referred to in Article 92(1)(c) of Regulation (EU) No 575/2013, plus the additional own funds requirement
referred to in Article 138(2)(2) of the Banking Act and the combined buffer requirement referred to in Article 55(4) of the
Macroprudential Supervision Act. The additional surcharge should consist entirely of Common Equity Tier 1 capital.
As a result of the changes described above, the minimum levels of solvency ratios under the law and administrative
decisions issued by the PFSA as at the reporting date of 31 December 2022 on a consolidated basis are as follows:
Minimum levels of capital adequacy ratios of the Bank and Capital Group
31.12.2022
Common Equity Tier I (CET I) capital ratio
8.02%
Tier I capital ratio
9.52%
Total capital ratio (TCR)
11.52%
Minimum requirement for own funds and eligible liabilities (MREL)
On 3 June 2022, the Bank received a letter from the Bank Guarantee Fund (‘BFG’) regarding the joint decision of the
resolution authorities, i.e. the Single Resolution Board (SRB), the Central Bank of Hungary, Finanstilsynet, the Bank of
England and the BFG, on the minimum level of own funds and eligible liabilities (‘MREL’).
The joint decision indicates that the group forced restructuring plan provides for a single point of entry (SPE) strategy for
the forced restructuring. The Group's preferred tool for forced restructuring is the open bank bail-in.
The MREL requirement set by the Fund, in consultation with the SRB, for BNP Paribas Bank Polska S.A. is:
15.99% of TREA, the total risk exposure amount (TREA) calculated in accordance with Article 92(3) and (4) of Regulation
(EU) No 575/2013 (hereinafter: MREL-TREA) and
5.91% the total exposure measure (TEM) calculated in accordance with Articles 429 and 429a of Regulation (EU) No
575/2013 (hereinafter MREL-TEM)
at the individual level the Bank is required to meet the MREL requirement by 31 December 2023.
At the same time, the Fund, in consultation with the SRB, has set interim targets for the Bank to meet by the end of each
calendar year during the period of reaching the target MREL level:
in relation to ТREA: 11.99% at the end of 2021 and 13.99% at the end of 2022,
in relation to TEM are: 3.00% at the time of communicating to the Bank the agreement and joint decision on MREL and
4.46% at the end of 2022.
On 22 September 2022, the Fund announced an update to the Methodology for the determination of MREL and, in
particular, an update to the pathway to the target minimum level of own funds and eligible liabilities expressed as a
percentage of total risk exposure (MREL-TREA). The Fund has adopted new assumptions for the determination of the
interim MREL-TREA requirement for entities for which the use of a forced restructuring facility is assumed in forced
restructuring plans or group forced restructuring plans ("plans"). For the current planning cycle, the Fund will determine
the interim MREL-TREA requirement that entities should meet by 31 December 2022, based on the same formula as for
the interim MREL-TREA requirement that entities are required to meet from 1 January 2022.
The Fund has stated that it will apply the revised rules for the determination of the interim MREL requirement in
accordance with the schedule for the adoption of the reviews and updates of the forced restructuring plans and group
forced restructuring plans. In the case of domestic subsidiary entities in cross-border groups, for which the adoption of
plans and the setting of minimum levels of own funds and eligible liabilities are made by way of a joint decision, it may be
the case that the adoption of joint decisions taking into account the revised path to the MREL-TREA target will occur after
1 January 2023.
In such cases, until new joint decisions incorporating updated interim MREL-TREA requirements are adopted, the Fund will
take into account the fact of pending changes to the interim MREL-TREA level when monitoring compliance with the
interim MREL-TREA requirement.
In light of the above, the Bank has assumed that the MREL requirement in relation to TREA will be 11.99% at the end of
2022 until a new joint decision of the resolution authorities, i.e. the Single Resolution Board (SRB), the Central Bank of
Hungary, Finanstilsynet, the Bank of England and the BGF, on the minimum level of own funds and eligible liabilities
("MREL") is obtained.
The entire MREL requirement should be met in the form of own funds and liabilities meeting the criteria set out in Article
98 of the BGF Act, which transposes Article 45f(2) of BRRD2. According to the Decision, the part of MREL corresponding to
the recapitalisation amount (CAR) will be met in the form of AT1, T2 instruments and other subordinated eligible liabilities
acquired directly or indirectly by the parent undertaking. The Bank meets the defined requirements of MREL-TREA and
MREL-TEM as at 31 December 2022.
Financial ratios
The Group's return on equity (ROE), calculated on a reported basis, was 3.9% in 2022 and was 2.5 p.p. higher than at the
end of 2021. Return on assets (ROA) calculated in a similar manner was 0.3% and increased by 0.2 p.p. compared to 2021.
The levels of the return ratios are significantly distorted by the occurrence in 2022 of the negative impact of the credit
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moratoria (see the Group Financial Performance section) and the recognition, especially in 2022 and 2021, of significant
costs for provisions for risks related to foreign currency mortgage loan litigation. The Group's return on equity (ROE)
calculated excluding the impact of credit moratoria would be 10.2% in 2022, 8.7 p.p. higher than the similarly calculated
ratio for 2021 (1.5%). In the case of return on assets (ROA), the ratio would be 0.8%, i.e. 0.7 p.p. higher than in 2021.
The Cost/Income ratio calculated on the basis of reported volumes was 56.8% (3.9 p.p. higher compared to 2021)- as a
result of recognising the impact of credit moratoria in net interest income and higher costs of the BFG and IPS. The ratio
calculated without the impact of BFG, IPS and credit moratoria would have been 42.9%, 7.0 p.p. lower than in 2021.
Net interest margin calculated in relation to average assets amounted to 2.5% and was similar to the level calculated for
2021. The positive impact of the increase in NBP interest rates in 2022 (reference rate higher by 500 b.p. y/y) was
neutralised by the recognition of the PLN 895 million negative impact of credit moratoria.
Changes in the values of the ratios representing the ratio of net and gross loans to deposits and funding sources reflect
the good liquidity situation observed in 2022 and 2021.
Table 69. Financial ratios
31.12.2022
31.12.2021
31.12.2020
Change
2022/2021
Return on capital
3.9%
1.5%
6.3%
+2.5 p.p.
Return on equity normalised
10.2%
1.5%
6.2%
+8.7 p.p.
Return on assets
0.3%
0.1%
0.6%
+0.2 p.p.
Return on assets normalised
0.8%
0.1%
0.6%
+0.7 p.p.
Net interest margin
2.5%
2.5%
2.6%
0.0 p.p.
Cost/income
56.8%
52.9%
53.3%
+3.9 p.p.
Cost/income excluding BGF, IPS, costs of integration, credit
moratoria
42.9%
49.9%
49.0%
(7.0 p.p.)
Cost of risk
(0.30%)
(0.32%)
(0.78%)
+0.03 p.p.
Normalised cost of risk
(0.33%)
(0.43%)
(0.83%)
+0.10 p.p.
Net lending/deposits
75.3%
85.5%
84.0%
(10.2 p.p.)
Gross loans/total funding sources
71.3%
80.2%
79.2%
(8.9 p.p.)
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Alternative Performance Measures
Presented ratios and categories belong to a group of standard and commonly used in financial analysis. These allow for the assessment and comparison of the Group's profitability and financial position. The presentation of the level of net profit and
ratios in normalised terms, i.e. calculated excluding the impact of abnormal events, is aimed at providing additional information to allow a more adequate assessment of changes in the long term and to assess the impact of various factors on the
Group's results and financial position.
Table 70. Alternative Performance Measures
thousand PLN / %
31.12.2022
31.12.2021
31.12.2020
Definitions and assumptions
Net profit
441,497
176,298
733,095
Profit and loss account category from the Consolidated Financial Statements of the BNP Paribas Bank Polska S.A. Group for the relevant years.
Total average equity
11,184,493
11,968,583
11,570,631
Average calculated on the basis of balances at the end of the last 5 quarters (statement of financial position category from the Consolidated Financial Statements of the
BNP Paribas Bank Polska Group).
Return on capital
3.9%
1.5%
6.3%
Ratio of net profit to average total equity
Normalised net profit
1,166,447
176,298
720,673
Consolidated income statement category adjusted for the negative impact of credit moratoria (2022: PLN -895,000 thousand, see chapter Consolidated income statement),
and the impact of integration costs understood as additional costs related to bank merger processes (2022 and 2021 no impact; 2020: positive value PLN 15,336
thousand). Impact of credit moratoria and integration costs on net profit estimated using an income tax rate of 19%.
Total average equity normalised
11,485,813
11,966,099
11,634,975
Average total equity adjusted in the same way as normalised net profit, with adjustments made for each quarter
Normalised return on equity
10.2%
1.5%
6.2%
Ratio of normalised net profit to average total normalised equity
Total average assets
142,002,171
125,017,783
116,371,353
Average calculated on the basis of balances at the end of the last 5 quarters (statement of financial position category from the Consolidated Financial Statements of the
BNP Paribas Bank Polska Group).
Return on assets
0.3%
0.1%
0.6%
Ratio of net profit to average total assets
Total average assets normalised
142,303,491
125,015,299
116,435,698
Average total assets adjusted in the same way as normalised net profit, with adjustments made for each quarter
Return on assets normalised
0.8%
0.1%
0.6%
Ratio of normalised net profit to average total normalised assets
Net interest income
3,493,005
3,140,942
3,060,070
Profit and loss account category from the Consolidated Financial Statements of the BNP Paribas Bank Polska S.A. Group for the relevant years.
Net interest margin
2.5%
2.5%
2.6%
Ratio of net interest income to total average assets
Costs
3,038,456
2,543,529
2,505,563
Sum of general administrative expenses and Depreciation and Amortisation (income statement categories from the Consolidated Financial Statements of the BNP Paribas
Bank Polska Group).
Net income on banking activities (income)
5,351,946
4,809,257
4,704,694
The sum of net interest income, net fee and commission income, dividend income, net trading income, net investment income, net hedge accounting income, net
discontinued assets/liabilities and other operating income and expenses (profit and loss account categories from the Consolidated Financial Statements of the BNP
Paribas Bank Polska Group).
Costs/Income
56.8%
52.9%
53.3%
Cost-income ratio
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thousand PLN / %
31.12.2022
31.12.2021
31.12.2020
Definitions and assumptions
Costs/income excluding BFG, IPS, integration
costs and impact of credit moratoria
42.9%
49.9%
49.0%
Costs were reduced by the Group's cost of fees to the Bank Guarantee Fund and the IPS - Commercial Bank Protection Scheme (categories of Notes Administrative
expenses of the Consolidated Financial Statements of the BNP Paribas Bank Polska S.A. Group, in 2022: PLN 358,871 thousand, in 2021: PLN 143,352 thousand, in 2020:
PLN 213,185 thousand) and the impact of integration costs understood as additional costs related to bank merger processes (2022 and 2021: no integration costs, 2020:
positive value of PLN 10,295 thousand). Revenue was adjusted by the amount of PLN 895,000 thousand of the negative impact of credit moratoria (see chapter
Consolidated income statement) and in 2020 the positive impact of integration costs recorded under revenue (other operating expenses), positive value PLN 5,042
thousand.
Result of impairment losses on financial
assets and provisions for liabilities
275,010
266,185
601,499
Category of Income Statement from the Consolidated Financial Statements of the BNP Paribas Bank Polska S.A. Group for the relevant years.
Average gross loans and advances to
Customers, measured at amortised cost
92,070,624
82,184,314
77,306,157
Average calculated on the basis of balances at the end of the last 5 quarters (category from the Note Loans and advances to Customers measured at amortised cost from
the Consolidated Financial Statements of the BNP Paribas Bank Polska Group).
Cost of risk
(0.30%)
(0.32%)
(0.78%)
Ratio of the result of impairment losses on financial assets and provisions for contingent liabilities to the average gross loans and advances to Customers, measured at
amortised cost.
Result of impairment losses on financial
assets and provisions for liabilities
normalised
(240,966)
(181,265)
(559,131)
Result of impairment losses on financial assets and provisions for liabilities adjusted for the impact of the sale of non-performing loan portfolios (2022 PLN +34,044
thousand, 2021 PLN +84,920 thousand, 2020. PLN +42,368 thousand).
Normalised cost of risk
(0.33%)
(0.43%)
(0.83%)
Ratio of the result of impairment losses on financial assets and provisions for contingent liabilities, normalised, to the average gross loans and advances to Customers,
measured at amortised cost.
Net loans
90,039,615
86,299,481
75,637,117
The sum of the categories of net loans and advances to Customers measured at amortised cost and net loans and advances to Customers measured at fair value through
profit or loss - categories from the notes to the Consolidated Financial Statements of the BNP Paribas Bank Polska Group. Balances at the end of periods.
Deposits
119,529,220
100,991,275
90,051,004
Difference between the Liabilities to Customers category and the Loans and advances to non-bank financial entities category - from the Note Liabilities to Customers from
the Consolidated Financial Statements of the BNP Paribas Bank Polska S.A. Group. Balances at the end of periods.
Net loans/deposits
75.3%
85.5%
84.0%
Net loans to deposits ratio.
Impaired loans and advances (Phase 3)
3,021,879
3,206,719
4,149,251
Category from the Note Loans and advances to Customers measured at amortised cost from the Consolidated Financial Statements of the BNP Paribas Bank Polska S.A.
Group.
Gross loans and advances to Customers
measured at amortised cost
92,096,240
88,042,967
77,284,074
Category from the Note Loans and advances to Customers measured at amortised cost from the Consolidated Financial Statements of the BNP Paribas Bank Polska S.A.
Group.
Share of impaired receivables (NPL ratio)
3.3%
3.6%
5.4%
Ratio of impaired loans and advances (Phase 3) to gross loans and advances to Customers measured at amortised cost, at period end.
Impairment allowance (Phase 3 receivables)
1,801,257
1,839,327
2,086,939
Category from the Note Loans and advances to Customers measured at amortised cost from the Consolidated Financial Statements of the BNP Paribas Bank Polska S.A.
Group.
Impairment coverage of receivables (Phase 3)
59.6%
57.4%
50.3%
Ratio of Impairment allowance (Phase 3 receivables) to Impaired loans and advances (Phase 3).
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Business segment performance
Retail and Business Banking
Commercial volumes
As at 31 December 2022, Retail and Business Banking Clients' deposits on a consolidated level amounted to PLN 60,980,770
thousand and were by PLN 4,666,983 thousand higher (or 8.3%) than at the end of 2021. Both funds in savings and current
accounts decreased by PLN 7,674,572 thousand (or 39.8%) and PLN 1,441,676 thousand (or 4.6%) respectively. Term
deposits increased by PLN 13,927,228 thousand or 259.7% compared to the end of 2021.
The percentage structure of the main product categories changed: the share of term deposits increased significantly (by
22.1 p.p. to the level of 31.6%) with a parallel decrease in the share of savings accounts (by 15.2 p.p. to the level of 19.1%),
of current accounts (by 6.6 p.p. to 48.7%) and overnight deposits (by 0.3 p.p to the level of 0.6%).
The reversal of the trend of increasing shares of current deposits and savings accounts observed in 2021 was a
consequence of the significant increase in NBP interest rates initiated in the fourth quarter of 2021.
The net loan portfolio of the Retail and Business Banking segment on a consolidated basis as at 31 December 2022
amounted to PLN 48,007,542 thousand, a decrease by 4.0% (i.e. by PLN 1,987,135 thousand) compared to the end of 2021.
In value terms, the largest increase was in investment loans and overdrafts (by PLN 801,514 thousand, or 12.5%, and by
PLN 520,293 thousand, or 18.5%, respectively).
The decrease in net mortgage loans was significantly impacted by the recognition in the second half of 2022 of the negative
impact of the Act on Crowdfunding for Business Ventures and Assistance to Borrowers adopted on 14 July 2022, which
allows borrowers to apply to suspend, at no cost, the repayment of 8 instalments of a PLN mortgage loan from 1 August
2022 to 31 December 2023 (credit moratoria) in the amount of PLN 895,000 thousand. The value of the portfolio was also
negatively affected by a reduction in demand and a significant decrease in sales of mortgage loans as a consequence of an
increase in interest rates and a reduction in Customers' creditworthiness.
The gross volume of FX mortgage loans (withdrawn from the offer in 2008-2009) in the analysed period amounted to PLN
4,124,863 thousand (PLN 4,569,608 thousand at the end of 2021). Loans granted in CHF accounted for 99.2% of this
portfolio. The recorded decrease of the portfolio value resulted from repayments and strengthening of PLN versus CHF (the
exchange rate increased from 4.4484 at the end of 2021 to 4.7679 at the end of 2022). The value of the portfolio
denominated in CHF decreased by 15.7% compared to the end of 2021.
2
Deposit and loan volumes of selected segments have been presented on the basis of data from management information systems, due to the availability of more
detailed product information. For comparability, data as at 31.12.2021 have been presented in accordance with the segmentation applicable in 2022. Deposit volumes
Table 71. Deposits and Loans in Retail and Business Banking
2
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Current accounts
29,722,893
31,164,569
(1,441,676)
(4.6%)
Savings accounts
11,624,591
19,299,163
(7,674,572)
(39.8%)
Term deposits
19,290,565
5,363,338
13,927,228
259.7%
Overnight deposits 
342,721
486,718
(143,997)
(29.6%)
Accounts and Deposits
60,980,770
56,313,787
4,666,983
8.3%
Consumer loans 
10,655,295
10,447,106
208,190
2.0%
Investment loans 
5,603,375
6,404,889
(801,514)
(12.5%)
Overdrafts 
2,297,446
2,817,738
(520,293)
(18.5%)
Mortgage loans
26,177,793
26,555,347
(377,554)
(1.4%)
Lease receivables
2,368,130
2,724,712
(356,582)
(13.1%)
Credit cards 
900,431
1,036,825
(136,394)
(13.2%)
Other loans
5,072
8,060
(2,988)
37.1%)
Net loans and advances
48,007,542
49,994,677
(1,987,135)
(4.0%)
Gross profit
In 2022, the Retail and Business Banking segment had a negative gross result of PLN -1,115,657 thousand (compared to a
loss of PLN 699,274 thousand in 2021) mainly due to the negative impact of credit holidays on the result on banking
activities (decrease in net interest income by PLN 895,000 thousand) and an increase in operating and depreciation costs
by PLN 196,11o thousand, i.e. 17.2%, which was caused by primarily by higher fees for the BFG and the newly established
System for the Protection of Commercial Banks S.A. (IPS).
do not include balances of certain credit institutions, which are treated as interbank deposits in management reporting but are included in Customer deposits in
financial reporting; in addition, balances do not include accrued interest not matured.
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In 2022, there was an improvement in net fee and commission income by PLN 32,904 thousand, i.e. by 5.9%, and in the
result on trading and other activities by PLN 9,037 thousand, i.e. by 11.2%. Net interest income amounted to PLN 1,509,469
thousand and was lower by PLN 237,830 thousand, i.e. by 13.6%. These changes contributed to the result on banking
activities being lower by PLN 195,889 thousand, i.e. by 8.2%. This result accounted for 41.0% of the Group's result on
banking activities in the analysed period. The Personal Finance area generated 37.1% of the result on banking activities of
the Retail and Business Banking segment.
In 2022, the Retail Banking segment recorded an increase in the number of Customers of 70.3 thousand, i.e. by 1.7% y/y.
Table 72. Gross profit of Retail and Business Banking segment
3
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Interest income
1,509,469
1,747,299
(237,830)
(13.6%)
Fee and commission income
592,600
559,696
32,904
5.9%
Trading and other income
90,004
80,967
9,037
11.2%
Income on banking activity
2,192,072
2,387,962
(195,889)
(8.2%)
Result on impairment allowances
(339,039)
(148,341)
(190,698)
128.6%
Provisions for legal risk of CHF portfolio
(740,000)
(1,045,304)
305,304
(29.2%)
Operating expenses and depreciation 
(1,337,164)
(1,141,054)
(196,110)
17.2%
Allocation of costs
(672,880)
(580,917)
(91,963)
15.8%
Operating profit
(897,010)
(527,655)
(369,355)
70.0%
Tax on financial institutions
(218,647)
(171,619)
(47,028)
27.4%
Gross result of the segment 
(1,115,657)
(699,274)
(416,384)
59.5%
Bank guarantees
In 2022, the Bank issued 17 bank guarantees for Business Banking Area Customers for a total of PLN 2.4 million.
3
Data based on the segmentation note included in the Consolidated Semi-Annual Report of the BNP Paribas Bank Polska S.A. Group for the 12 months ended 31
December 2022.
Banking of Corporate Banking and Small and Medium Enterprise Banking
Commercial volumes
Corporate Banking
As at 31 December 2022, deposits from Corporate Banking Customers amounted to PLN 42,298,701 thousand and were PLN
10,693,076 thousand or 33.8% higher than at the end of 2021. The share of time deposits increased significantly in the
portfolio structure (from 11.7% at the end of 2021 to 28.0% at the end of 2022), while the share of current accounts
decreased (from 86.3% at the end of 2021 to 69.2% at the end of 2022).
The net loan portfolio of the Corporate Banking segment on a consolidated basis at the end of 2022 amounted to PLN
28,631,115 thousand, up by 15.8% over the balance at the end of 2021. The increase related to both investment loans and
overdrafts.
Table 73. Deposits and loans – Corporate Banking
4
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Current accounts
29,267,421
27,275,911
1,991,510
7.3%
Saving accounts
10,364
14,555
(4,191)
(28.8%)
Term deposits
11,846,360
3,692,096
8,154,264
220.9%
Overnight deposits
1,174,557
623,063
551,494
88.5%
Accounts and deposits
42,298,701
31,605,625
10,693,076
33.8%
Investment loans
17,761,536
14,907,929
2,853,607
19.1%
Overdrafts
8,496,900
7,698,750
798,150
10.4%
Lease receivables
2,333,453
2,071,598
261,856
12.6%
Factoring
35,880
38,796
(2,915)
(7,5%)
Other loans
3,346
1,677
1,669
99.5%
Net loans and advances
28,631,115
24,718,749
3,912,367
15.8%
4
Deposit and loan volumes of selected segments have been presented on the basis of data from management information systems, due to the availability of more
detailed product information. For comparability, data as at 31.12.2021 have been presented in accordance with the segmentation in force in 2022. Deposit volumes do
not include balances of certain credit institutions, which are treated as interbank deposits in management reporting, while in financial reporting they are included in
Customer deposits; in addition, balances do not include accrued interest not matured.
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Small and Medium Enterprises
As at 31 December 2022, deposits of Small and Medium Enterprises Banking Customers on a consolidated basis amounted
to PLN 15,784,738 thousand and were by PLN 2,826,988 thousand, or 21.8%, higher than at the end of 2021. The largest
increase in value concerned time deposits (by PLN 2,255,023 thousand, or 367.3%), with a slight increase in current
accounts by PLN 589,865 thousand, or 4.8%, compared with the end of 2021. Current accounts accounted for 81.3% of
deposits of SME Banking Customers and their share decreased from 94.5% at the end of 2021, while the share of time
deposits increased from 4.7% at the end of 2021 to 18.2% at the end of 2022.
The SME Banking segment's net loan portfolio on a consolidated basis amounted to PLN 7,213,992 thousand as at 31
December 2022 and was almost unchanged compared with the balance at the end of 2021 (higher by PLN 14,288
thousand). The largest decrease in value was in investment loans, with a simultaneous increase in overdrafts and leasing.
Table 74. Deposits and Loans to Small and Medium Enterprises
5
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Current accounts
12,834,446
12,244,581
589,865
4.8%
Savings accounts
59,465
58,651
814
1.4%
Term deposits 
2,869,033
614,011
2,255,023
367.3%
Overnight deposits
21,793
40,507
(18,714)
(46.2%)
Accounts and deposits
15,784,738
12,957,750
2,826,988
21.8%
Investment loans
4,004,295
4,473,400
(469,105)
(10.5%)
Overdraft
2,366,069
2,030,584
335,484
16.5%
Lease receivables 
840,793
693,373
147,420
21.3%
Factoring
337
512
(175)
(34.2%)
Other loans
2,499
1,836
663
36.1%
Loans and credits (net) 
7,213,992
7,199,705
14,288
0.2%
5
Deposit and loan volumes of selected segments have been presented on the basis of data from management information systems, due to the availability of more
detailed product information. For comparability, data as at 31.12.2021 have been presented in accordance with the segmentation in force in 2022. Deposit volumes do
not include balances of certain credit institutions, which are treated as interbank deposits in management reporting, while in financial reporting they are included in
Customer deposits; in addition, balances do not include accrued interest not matured.
Gross profit
Corporate Banking
The Corporate Banking segment in 2022 generated a gross profit amounting to PLN 1,000,670 thousand (against PLN
605,096 thousand in 2021, an increase of 65.4%). The increase in gross profit was the result of growing business volumes,
higher interest rates and higher Customer activity, which contributed, among other things, to an increase in trading profit.
Gross profit was positively impacted by an improvement in the result of impairment losses (resulting, among other things,
from the release of the COVID provision due to the stable pandemic situation).
The result from Corporate Banking activities amounted to PLN 1,642,319 thousand and was higher by PLN 487,357
thousand, or 42.2%, in comparison with 2021, mainly as a result of an increase in net interest income by PLN 356 864
thousand, i.e. by 64.0% y/y, as well as in the result of trade and other activities by PLN 90 566 thousand, i.e. by 32.6% y/y).
This result represents 30.7% of the Group's banking profit during analysed period.
Table 75. Gross profit of Corporate Banking segment
6
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
Change y/y
thousand
PLN
%
Interest income
914,890
558,026
356,864
64.0%
Fee and commission income
359,117
319,190
39,927
12.5%
Trading and other income
368,312
277,746
90,566
32.6%
Income on banking activity
1,642,319
1,154,962
487,357
42.2%
Impairment losses
30,540
(78,985)
109,525
-
Operating expenses and depreciation
(392,321)
(268,202)
(124,119)
46.3%
Expense allocation
(176,004)
(119,088)
(56,916)
47.8%
Operating result
1,104,535
688,687
415,848
60.4%
Tax on financial institutions
(103,864)
(83,591)
(20,274)
24.3%
Gross profit of the segment
1,000,670
605,096
395,574
65.4%
6
Data based on the segmentation note included in the Consolidated Semi-Annual Report of the BNP Paribas Bank Polska S.A. Group for the 12 months ended 31
December 2022.
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Banking of Small and Medium Enterprises
The Small and Medium Enterprises Banking segment generated a gross profit of PLN 257,357 thousand in 2022 (compared
to PLN 79,190 thousand in 2021, an increase of 225.0% y/y).
There was an improvement in all components of the result on banking activities (net interest income by PLN 97,823
thousand, i.e. by 40.5% y/y, net fee and commission income by PLN 9,878 thousand, i.e. by 7.7% y/y and net trading and
other activities by PLN 18,848 thousand, i.e. by 24.1% y/y), as well as lower cost of risk (resulting, among others, from the
release of the COVID provision in connection with a stable pandemic situation) than last year, partially offset by an increase
in operating expenses and depreciation and amortisation (by PLN 21,894 thousand, i.e. by 17.3% y/y).
The result on banking activities of Small and Medium Enterprises Banking in 2022 amounted to PLN 575,249 thousand and
was 28.2% higher compared to 2021. This was the result of an increase in all components of the profit, which accounted for
10.7% of the Group's banking result during the analysed period.
Table 76. Gross profit of the SME Banking segment
7
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Interest income
339,434
241,610
97,823
40.5%
Fee and commission income
138,726
128,848
9,878
7.7%
Trading and other income
97,089
78,241
18,848
24.1%
Income on banking activity
575,249
448,699
126,550
28.2%
Impairment losses
51,037
(40,245)
91,282
-
Operating expenses and depreciation
(148,789)
(126,895)
(21,894)
17.3%
Expense allocation
(188,654)
(175,598)
(13,056)
7.4%
Operating result
288,844
105,961
182,883
172.6%
Tax on financial institutions
(31,487)
(26,771)
(4,716)
17.6%
Gross profit of the segment
257,357
79,190
178,167
225.0%
7
Data based on the segmentation note included in the Consolidated Semi-Annual Report of the BNP Paribas Bank Polska S.A. Group for the 12 months ended 31
December 2022.
Bank guarantees
In terms of guarantees and letters of credit, the Bank offers a fast and comprehensive service based on dedicated IT
solutions.
In 2022 the Bank:
for Customers of the Corporate Banking Area: issued 5,297 bank guarantees for a total of PLN 3 billion, opened 935 import
letters of credit for a total of PLN 972.6 million and handled 342 export letters of credit for a total of PLN 716.3 million
issued by third-party banks in favour of these Clients;
for Customers of the SME Banking Area: issued 719 bank guarantees for a total amount of PLN 213.6 million, opened 72
import letters of credit for a total amount of PLN 37.9 million and handled 79 export letters of credit for a total amount of
PLN 31.2 million issued by third-party banks in favour of these Customers.
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Bank's financial results
Stand-alone statement of profit and loss
Results on banking activity in the analysed period amounted to PLN 5,173,434 thousand and was higher y/y by PLN
488,080 thousand, i.e. 10.4%.
The most important events affecting the level of the result from banking activities in 2022 and its comparability with the
previous year were changes in the macroeconomic situation including, above all, the biggest increase in inflation in
decades, which became apparent already in the fourth quarter of 2021 and accelerated significantly with the outbreak of
war in Ukraine. They were accompanied by changes in economic and monetary policy, which changed the conditions for
banking operations. The Banks's financial performance was most affected by:
the monetary policy tightening cycle by the Monetary Policy Council (MPC). From the 6th of October 2022 to the end of
September 2022, the MPC increased interest rates eleven times by a total of 665 bps to the level of 6.75% for the
reference rate. Since October 2022, the Monetary Policy Council (hereinafter: MPC) has kept NBP interest rates
unchanged. According to a statement made by the NBP President, the MPC has not yet completed the policy tightening
cycle, but has suspended it until the central bank's new macroeconomic forecast is presented in the March Inflation
Report. The increases and expectations of their scale have pushed up market interest rates and contributed to the
Group's interest income in 2022,
a lower result on hedge accounting compared to 2021 related to the pace and direction of changes in interest rates. The
change in the fair value of hedging transactions is recognised in the result on hedge accounting, which was in 2022
lower by PLN 37,102 thousand y/y, the interest result from IRS transactions (including also cash flow value hedge
derivatives) is recognised in the interest result and was in 2022 lower by PLN 769,861 thousand y/y,
on 14 July 2022, the Act on Crowdfunding for Business Ventures and Assistance for Borrowers was enacted. Under the
Act, a borrower is able to request a suspension of performance of mortgage contracts (moratorium) granted in PLN from
1 August 2022 to 31 December 2023, i.e. a total of 8 instalments, at no cost. Based on data on the use of the
aforementioned opportunity by Customers, the Bank recognised an amount of PLN 965 million of negative impact on the
Bank's result, in the net interest income of the third quarter of 2022 and its adjustment affecting the improvement of
the net interest income in the fourth quarter of 2022 in the amount of PLN 70 million,
decreasing in 2022 - with the deterioration of the macroeconomic situation - the demand of individual Customers for
credit products related to a significant decrease in the dynamics of consumption, reflecting the negative impact of high
inflation and interest rates on the level and structure of spending and the deterioration of the economic situation of
households. This phenomenon was most evident in the case of the PLN mortgage loan market, where the decrease in
Customer demand and credit capacity led to a significant reduction in sales and, consequently, to a nominal decrease in
the value of the portfolio of these loans on a sector-wide scale. The aforementioned factors also influenced the
decrease in sales of consumer loans compared to 2021, slowing down the rate of growth in bank commission and fee
income,
the end of sanitary restrictions related to the COVID-19 pandemic in 2022, together with the acceleration of inflation,
influencing increasing levels of business Customer activity in 2022. This was reflected in an increase in demand from
corporate Customers and SMEs for investment credit and an increase in the scale of operations, which had a positive
impact on the result from trading activities in the part of transactions with Customers. In contrast, the high cost of
credit, uncertainty about the future economic climate (caused mainly by the war in Ukraine) and the unstable legal
environment have had a negative impact on investment loans of entrepreneurs and individual farmers.
Elements of the regulatory environment that negatively affected the results of 2022 compared to 2021 include:
significant increase in BFG contributions and costs related to contributions to the assistance fund under the Commercial
Bank Protection System S.A. (IPS). The sum of costs incurred on the aforementioned titles was by PLN 215,519 thousand
in 2022, i.e. 150.3% higher than in 2021. (PLN 358,871 thousand vs. PLN 143,352 thousand),
incurring costs related to payments to the Borrowers' Support Fund of PLN 75,350 thousand in 2022 compared to the
release of a provision of PLN 1,043 thousand in 2021.
In total, administrative costs and amortisation expenses incurred in 2022 were PLN 492,915 thousand higher compared to
2021. In addition to the increase in regulatory costs described above, this was also due to inflationary pressures
translating into an increase in staff and administrative costs.
The factor significantly affecting the level of the Bank's net result in 2022, and its comparability with 2021, remains the
costs from provisions for legal risk related to foreign currency loans. In 2022, these were charged to Bank's results with
an amount of PLN 740,000 thousand compared to PLN 1,045,304 thousand in 2021 (a decrease in costs of PLN 305,304
thousand y/y).
The cost of credit risk increased in comparison with 2021 (the negative result of impairment losses on financial assets
and provisions for contingent liabilities was higher by PLN 45,754 thousand y/y). The positive impact of sales of
receivables made in 2022 was lower by PLN 50,876 thousand (amounting to +PLN 34,044 thousand compared to +PLN
84,920 thousand in 2021).
BNP Paribas Bank Polska S.A. generated a net profit of PLN 370,892 thousand in 2022, by PLN 186,366 thousand
(i.e. by 101.0%) higher than that achieved in 2021. It is estimated that, excluding the negative impact of loan
moratoria, the Bank's net profit in 2022 would amount to PLN 1,095,842 thousand, higher by PLN 911,316
thousand (i.e. by 493.9%) than that generated in 2021 (PLN 184,526 thousand on a comparable basis).
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Table 77. Statement of profit or loss
in PLN’000
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand PLN
%
Net interest income
3,397,742
3,067,580
330,162
10.8%
Net fee and commission income
1,079,235
1,002,050
77,185
7.7%
Dividend income
10,817
9,528
1,289
13.5%
Net trading income
754,384
633,658
120,726
19.1%
Net investment income
9,612
(8,741)
18,353
-
Result on fair value hedge accounting
13,267
50,369
(37,102)
(73.7%)
Result on derecognition of financial assets/liabilities
measured at amortised cost due to material
modification
(2,159)
-
(2,159)
-
Other operating income and expenses
(89,464)
(69,090)
(20,374)
29.5%
Net income on banking activity
5,173,434
4,685,354
488,080
10.4%
Net impairment allowance on financial assets and
provisions for contingent liabilities
(282,717)
(236,963)
(45,754)
19.3%
Result on provisions for court proceedings
related to foreign currency mortgage loans
(740,000)
(1,045,304)
305,304
(29.2%)
General administrative expenses
(2,524,065)
(2,044,754)
(479,311)
23.4%
Depreciation and amortization
(411,923)
(398,319)
(13,604)
3.4%
Operating result
1,214,729
960,014
254,715
26.5%
Tax on financial institutions
(426,553)
(338,110)
(88,443)
26.2%
Profit (loss) before income tax
788,176
621,904
166,272
26.7%
Income tax expense
(417,284)
(437,378)
20,094
(4.6%)
Net profit (loss)
370,892
184,526
186,366
101.0%
Net profit (loss) excluding impact credit moratoria
1,095,842
184,526
911,316
493.9%
Note: As the figures have been rounded up, the totals in the tables and charts of this Report may not add up
Net interest income
Net interest income, which is the Bank's main source of revenue, amounted to PLN 3,397,742 thousand in 2022 and was
higher y/y by PLN 330,162 thousand, i.e. by 10.8%. In 2022, compared to 2021, interest income was higher by PLN
2,842,477 thousand, i.e. by 86.0%, while interest expense increased by PLN 2,512,315 thousand, i.e. by 1,057.3%.
Table 78. Net interest income
thousand PLN
12 months ended
31.12.2022
12 months ended
31.12.2021
change y/y
thousand
PLN
%
Amounts due from banks
336,939
9,108
327,831
3,599.4%
Loans and advances to Clients measured at
amortized cost
4,590,739
2,295,847
2,294,892
100.0%
Loans and advances to Clients measured at fair
value through profit or loss
88,692
9,969
78,723
789.7%
Debt instruments measured at amortized cost
599,413
591,247
8,166
1.4%
Debt instruments measured at fair value through
profit or loss
7,569
4,607
2,962
64.3%
Debt instruments are measured at fair value
through other comprehensive income
324,117
190,653
133,464
70.0%
Derivative instruments in fair value hedge
accounting
188,498
195,568
(7,070)
(3.6%)
Derivative instruments in cash flow hedge
accounting
11,628
7,912
3,716
47.0%
Buy-sell-back securities
67
274
(207)
(75.5%)
Total interest income
6,147,662
3,305,185
2,842,477
86.0%
Amounts due to banks
(264,708)
(81,241)
(183,467)
225.8%
Debt securities issued
-
-
-
-
Amounts due to Customers
(1,609,451)
(90,880)
(1,518,571)
1,671.0%
Lease liabilities
(15,276)
(4,545)
(10,731)
236.1%
Derivative instruments in fair value hedge
accounting
(790,845)
(53,031)
(737,814)
1,391.3%
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 136
thousand PLN
12 months ended
31.12.2022
12 months ended
31.12.2021
change y/y
thousand
PLN
%
Derivative instruments in cash flow hedge
accounting
(30,960)
(2,267)
(28,693)
1,265.7%
Sell-buy-back securities
(38,592)
(1,056)
(37,536)
3,554.5%
Other related to financial assets
(88)
(4,585)
4,497
(98.1%)
Total interest expenses
(2,749,920)
(237,605)
(2,512,315)
1,057.3%
Net interest income
3,397,742
3,067,580
330,162
10.8%
Net fee and commission income
In 2022, the Bank's net fee and commission income amounted to PLN 1,079,235 thousand and was by PLN 77,185
thousand (i.e. by 7.7%) higher than that obtained in 2021. This increase was possible mainly due to the adjustment
measures taken by the Bank in the area of pricing policy, the higher transaction activity of Customers (payments and
cards), the persistent - especially in the first and second quarters of 2022 - high level of sales of products and services to
individual Customers and a significantly higher demand for credit (including current financing) from businesses compared
with 2021.
Table 79. Net fee and commission income
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Fee and commission income
lending and leasing activities
302,464
295,995
6,469
2.2%
accounts servicing
247,920
254,632
(6,712)
(2.6%)
cash service
42,312
32,875
9,437
28.7%
cash transfers and e-banking
98,151
84,288
13,863
16.4%
guarantees and documentary operations
54,530
50,555
3,975
7.9%
asset management and brokerage services
107,667
130,997
(23,330)
(17.8%)
payment and credit cards servicing
325,966
246,382
79,584
32.3%
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
intermediation in the sale of insurance products
134,278
113,322
20,956
18.5%
intermediation in the sale of Bank’s products and
acquisition of Customers
17,374
16,984
390
2.3%
other commissions
22,629
19,316
3,313
17.2%
Fee and commission income, total
1,353,291
1,245,346
107,945
8.7%
Fee and commission expenses
lending and leasing activity
(517)
(363)
(154)
42.4%
accounts servicing
(10,293)
(9,795)
(498)
5.1%
cash service
(24,676)
(17,935)
(6,741)
37.6%
cash transfers and e-banking
(7,873)
(2,699)
(5,174)
191.7%
guarantees and documentary operations
(4,700)
(5,673)
973
(17.2%)
asset management and brokerage services
(123,995)
(111,155)
(12,840)
11.6%
payment and credit cards
(22,582)
(19,271)
(3,311)
17.2%
intermediation in the sale of insurance products
(24,719)
(30,341)
5,622
(18.5%)
other commissions
(54,701)
(46,064)
(8,637)
18.8%
Fee and commission expenses, total
(274,056)
(243,296)
(30,760)
12.6%
Net fee and commission income
1,079,235
1,002,050
77,185
7.7%
Dividend income
In 2022, dividend income amounted in total to PLN 10,817 thousand and came primarily from the profits of companies for
2021 in which the Group held a minority interest, i.e.: among others, Biuro Informacji Kredytowej S.A. (PLN 3,726
thousand), Krajowa Izba Rozliczeniowa S.A. (PLN 1,542,812 thousand), VISA (PLN 397 thousand).
In 2021, dividend income totalled PLN 9,528 thousand and came from the profits of companies for 2020 in which the Bank
held a minority interest, i.e.: among others, Biuro Informacji Kredytowej S.A. (PLN 3,722 thousand), Krajowa Izba
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Rozliczeniowa S.A. (PLN 1,477 thousand), BNP Paribas Towarzystwo Funduszy Inwestycyjnych S.A. (PLN 978 thousand),
VISA (PLN 458 thousand).
Net trading income and net investment income
In 2022, the net trading income amounted to PLN 754,384 thousand and was higher by PLN 120,726 thousand, i.e. by
19.1%, compared to that obtained in 2021. The level and volatility of this result are mainly shaped by the result on
foreign exchange and derivative transactions with Customers, the result on transactions concluded by CIB and the Asset
and Liability Management Division and the valuation of equity instruments.
In 2021, the net investment income amounted to PLN 9,612 thousand and was higher by PLN 18,353 thousand compared
to a negative result: PLN -8,741 thousand realised in 2021.
Other operating income
In 2022, other operating income amounted to PLN 160,392 thousand, and was lower by PLN 36,553 thousand, or 18.6%,
compared with 2021.
Table 80. Other operating income
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Sale or liquidation of property, plant and equipment and
intangible assets
17,942
51,799
(33,857)
(65.4%)
Release of impairment allowances for other receivables
9,507
9,604
(97)
(1.0%)
Sale of goods and services
-
-
-
-
Release of provisions for litigation and claims and other
liabilities
56,718
42,962
13,756
32.0%
Recovery of debt collection costs
18,666
23,923
(5,257)
(22.0%)
Recovered indemnities
650
465
185
39.8%
Leasing operations
26,570
19,048
7,522
39.5%
Other operating income
30,339
49,144
(18,805)
(38.3%)
Other operating income, total
160,392
196,945
(36,553)
(18.6%)
8
data based on note 54 Segment information of the Consolidated Financial Statements of the BNP Paribas Bank Polska S.A. Group for the 12-month period ended 31
December 2022.
Other operating expenses
In 2022, other operating costs amounted to PLN 249,856 thousand, down by PLN 16,179 thousand (by 6.1%) compared
with 2021.
Table 81. Other operating expenses
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Loss on sale or liquidation of property, plant and
equipment and intangible assets
(21,826)
(52,477)
30,651
(58.4%)
Created impairment allowances for other receivables
(13,120)
(13,510)
390
(2.9%)
Provisions for litigation and claims and other liabilities
(58,520)
(62,998)
4,478
(7.1%)
Debt collection
(37,701)
(44,899)
7,198
(16.0%)
Donations made
(6,447)
(5,973)
(474)
7.9%
Costs of leasing operations
(24,889)
(17,347)
(7,542)
43.5%
Costs of compensations, penalties and fines
(5,322)
(10,819)
5,497
(50.8%)
Other operating expenses
(82,031)
(58,012)
(24,019)
41.4%
Other operating expenses, total
(249,856)
(266,035)
16,179
(6.1%)
Net impairment allowance on financial assets and provisions for contingent liabilities
In 2022, the result of impairment losses on financial assets and provisions for contingent liabilities was negative and
amounted to PLN 282,717 thousand. Its impact on the Bank's results was higher by PLN 45,754 thousand, i.e. by 19.3%
compared with 2021.
Regarding the main operating segments
8
:
the Retail and Business Banking segment recorded a deterioration in the negative result by PLN 233,360 thousand,
SME Banking segment a positive result and an improvement of the result by PLN 86,275 thousand,
Corporate Banking segment (including CIB) a positive result and improvement of the result by PLN 98,307 thousand,
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the Other Banking Activities segment a positive result and an improvement of the result by PLN 3,023 thousand.
In 2022, the materialisation of the cost of risk remained at a low level, influenced by the good quality of loan servicing
and the associated level of Phase 3 entries. At the same time, the result from impairment of financial assets and
provisions for contingent liabilities was significantly affected by the release of provisions for unrealised credit losses
related to the coronavirus pandemic and the creation of provisions related to the expectation of the impact of the current
macroeconomic and geopolitical situation on the quality of the loan portfolio in the future.
In 2022, provisions for unrealised credit losses related to the potential negative impact of COVID were released. Due to
the stabilisation of the pandemic situation and the expected limited impact of COVID in subsequent periods, the bank
released provisions of PLN 200,130 thousand.
At the same time, the Bank created additional provisions for unrealised losses for the impact of economic forecasts in the
amount of PLN 200,396 thousand (of which: provisions related to the update of forecasts of macroeconomic variables
included in the used IFRS9 model in the amount of PLN 57,926 thousand, and additional provisions related to risk factors
not directly included in the macroeconomic model in the amount of PLN 142,470 thousand.
The total impact of provisions for unrealised credit losses on the result of impairment of financial assets and provisions
for contingent liabilities was negative and amounted to PLN 267 thousand.
In addition, the cost of risk in 2022 was influenced by:
the release of the provisions created in 2021, amounting to PLN 65,170 thousand, due to the reversal of changes in
legislation, which had the effect of lowering the expected recovery levels on the portfolio of loans to farmers
(significantly affecting the result in the institutional loans segment),
increasing the provision related to Customers with the highest exposure to turbulence in the economic environment by
PLN 9,700 thousand. The Bank released provisions created due to the negative impact of energy prices in 2021 in the
amount of PLN 15,300 thousand reflecting this risk directly in the assessment of individual CTB/SME Clients. At the
same time, PLN 25,000 thousand provision for Customers most exposed to turbulence in the economic environment was
created,
adjusting the PD/LGD parameters for exposures transferred to Phase 2 as part of the identification of vulnerable
Customers in the portfolio of loans secured by real estate in PLN. This change resulted in the creation of provisions in
the amount of PLN 76,901 thousand,
introducing significant changes in the approach used to classification, estimation of write-downs as well as in the IFRS9
parameter models resulting in the creation of provisions in the amount of PLN 53,233 thousand, including:
- identification of exposures particularly exposed to turbulence in the economic environment (due to the ongoing war in
Ukraine, economic sanctions against Russia and Belarus, and the current economic situation). These exposures were
reclassified to Phase 2, as a result of which the Group recognized PLN 48,255 thousand additional provisions,
- implementation of a rationale for identifying a significant increase in credit risk (Phase 2) based on an assessment of
the relative change in the PD lifetime parameter,
- adaptation of the form of the LGD model to the shape of the recovery process and inclusion of additional dimensions
differentiating the LGD level for Phase 1 and Phase 2 exposures,
- implementation of an updated form of the CCF model,
- implementation of a new Default Rate macroeconomic model for companies using full accounting,
positive impact from the sale of debt portfolios in the amount of PLN 34,044 thousand.
In 2022, the Bank concluded agreements for the sale of the loan portfolio from the retail, SME and corporate portfolios.
The gross carrying amount of the sold portfolio measured at amortised cost was PLN 387,666 thousand, the amount of
impairment losses created was PLN 313,497 thousand. The contractual price for the sale of these portfolios was set at
PLN 108,213 thousand. The net impact on the Bank's result from the sale of the portfolios amounted to PLN 34,044
thousand.
In 2021, the Bank entered into agreements for the sale of a portfolio of loans from the retail, SME and corporate
portfolios. The gross carrying amount of the sold portfolio measured at amortised cost was PLN 711,954 thousand, the
amount of impairment losses created was PLN 638,727 thousand. The contractual price for the sale of these portfolios
was set at PLN 158,147 thousand. The net impact on the Group's result from the sale of the portfolios amounted to PLN
84,920 thousand.
The cost of credit risk, expressed as the ratio of the allowance result to the average gross loans and advances to
Customers measured at amortised cost (calculated on the basis of balances at the end of the quarters), amounted to
0.33% in 2022, 3 bps higher than in 2021 (0.30%). Excluding the impact of the sale of receivables, it is estimated that the
cost of risk would be 0.37% in 2022 and 0.41% in 2021.
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General administrative expenses, depreciation and amortization
In 2022, the Bank's general administrative expenses (including depreciation and amortisation) amounted to PLN
2,935,988 thousand and were higher by PLN 492,915 thousand, or 20.2%, compared with the previous year.
Table 82. General administrative expenses, depreciation and amortization
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Personnel expenses
(1,241,494)
(1,153,529)
(87,965)
7.6%
Marketing
(83,884)
(101,580)
17,696
(17.4%)
IT and telecom expenses
(264,575)
(212,089)
(52,486)
24.7%
Short-term lease and operating costs
(68,117)
(63,867)
(4,250)
6.7%
Other non-personnel expenses
(450,410)
(324,815)
(125,595)
38.7%
Business travels
(14,173)
(6,723)
(7,450)
110.8%
ATM and cash handling expenses
(26,045)
(22,746)
(3,299)
14.5%
Outsourcing costs related to leasing operations
(2,623)
(2,915)
292
(10.0%)
Contributions to Bank Guarantee Fund
(152,340)
(143,352)
(8,988)
6.3%
Contributions to the Commercial Banks Protection
Scheme
(206,531)
0
(206,531)
x
Fee for supervision costs (FSA)
(13,873)
(13,138)
(735)
5.6%
General administrative expenses, total
(2,524,065)
(2,044,754)
(479,311)
23.4%
Depreciation and amortization
(411,923)
(398,319)
(13,604)
3.4%
Total expenses
(2,935,988)
(2,443,073)
(492,915)
20.2%
Table 83. Employee benefit costs
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Salary costs
(993,235)
(923,546)
(69,689)
7.5%
Salary surcharges
(178,334)
(163,211)
(15,123)
9.3%
Employee benefits
(44,966)
(44,770)
(196)
0.4%
Costs of provision for restructuration
(775)
(341)
(434)
127.3%
Costs of provision for future liabilities due to unused
holidays and retirement severance payments
(9,095)
(7,749)
(1,346)
17.4%
Write-offs to the Company Social Benefits Fund
(14,025)
(13,191)
(834)
6.3%
Other
(1,064)
(721)
(343)
47.6%
Employee benefits costs, total
(1,241,494)
(1,153,529)
(87,965)
7.6%
In 2022, the Bank's depreciation and amortisation expenses amounted to PLN 411,923 thousand and were higher
compared to 2021 by PLN 13,604 thousand (i.e. by 3.4%). This increase was mainly caused by the continued
transformation and digitalisation of the Bank and the capital expenditure incurred for this purpose.
In 2022, the Bank's capital investments amounted to PLN 367,685 thousand and were higher by PLN 44,768 thousand, or
13.9%, compared with the same period last year. The volume of capital investments is adapted to the Bank's current
needs and capabilities. All projects are analysed from the point of view of rationality and impact on the financial and
business situation of the Bank and the Group.
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Statement of comprehensive income
In 2022, the Bank's comprehensive income was negative at PLN -183,401 thousand, compared to a negative value of PLN
-667,068 thousand in 2021 (an improvement of PLN 483,667 thousand; i.e. by 72.5%).
This was the result of a PLN 370,377 thousand improvement in the valuation of financial assets measured by other
comprehensive income (negative impact of PLN -599,039 thousand in 2022 vs. PLN -969,416 thousand in 2021). This
improvement is related to the suspension of the monetary tightening cycle by the Monetary Policy Council.
The second component that improved the Bank's comprehensive income was the net financial result, which at the end of
2022 was higher by PLN 186,366 thousand (or 101.0%) compared to the end of 2021.
Table 84. Statement of comprehensive income
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Net income
370,892
184,526
186,366
101.0%
Other comprehensive income
Items that will be reclassified subsequently to profit or
loss upon fulfilment of certain conditions
(553,251)
(854,322)
301,071
(35.2%)
Valuation of financial assets at gross other
comprehensive income
(599,039)
(969,416)
370,377
(38.2%)
Deferred tax on valuation of financial assets measured
through other gross comprehensive income
113,817
184,189
(70,372)
(38.2%)
Valuation of gross cash flow hedging derivatives
(83,987)
(85,303)
1,316
(1.5%)
Deferred tax on valuation of gross cash flow hedging
derivatives
15,958
16,208
(250)
(1.5%)
Items that cannot be reclassified into profit or loss
(1,042)
2,728
(3,770)
-
Gross actuarial valuation of employee benefits
(1,287)
3,368
(4,655)
-
Gross deferred tax on actuarial valuation of employee
benefits
245
(640)
885
-
Other comprehensive income (net)
(554,293)
(851,594)
297,301
(34.9%)
Total comprehensive income
(183,401)
(667,068)
483,667
(72.5%)
Statement of financial position
Assets
The Group's total assets as of the end of 2022 amounted to PLN 146,108,498 thousand, an increase by PLN 19,747,238
thousand, or 15.6%, compared to the end of 2021.
Table 85. Assets
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Cash and balances at Central Bank
2,718,242
4,631,410
(1,913,168)
(41.3%)
Amounts due from banks
11,709,582
2,254,621
9,454,961
419.4%
Derivative financial instruments
3,224,272
1,901,919
1,322,353
69.5%
Fair value adjustment of hedged item
33,025
65,465
(32,440)
(49.6%)
Loans and advances to Customers measured at
amortised cost
83,893,270
80,124,751
3,768,519
4.7%
Loans and advances to Customers measured at fair value
through profit or loss
949,298
1,219,027
(269,729)
(22.1%)
Debt securities measured at amortised cost
22,167,261
23,268,041
(1,100,780)
(4.7%)
Financial instruments measured at fair value through
profit or loss
311,236
320,216
(8,980)
(2.8%)
Debt securities measured at fair value through other
comprehensive income
17,384,793
9,143,353
8,241,440
90.1%
Investments in subsidiaries
93,119
122,033
(28,914)
(23.7%)
Intangible assets
825,196
744,169
81,027
10.9%
Property, plant and equipment
1,059,703
1,233,221
(173,518)
(14.1%)
Deferred tax assets
822,122
719,650
102,472
14.2%
Current tax assets
-
-
-
-
Other assets
917,379
613,384
303,995
49.6%
Total assets
146,108,498
126,361,260
19,747,238
15.6%
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Loan portfolio
Structure of loan portfolio
At the end of 2022, gross loans and advances to Customers (the sum of portfolios measured at amortized cost and
measured at fair value) amounted to PLN 87,741,368 thousand and increased by PLN 3,553,972 thousand, or 4.2%,
compared to the end of 2021.
Table 86. Structure of loan portfolio measured at amortised cost
thousand PLN
31.12.2022
31.12.2021
Total gross
share %
Total gross
share %
Business entities with the exception of farmers
39,263,132
45.2%
34,893,415
42.1%
Farmers
6,835,131
7.9%
7,755,784
9.3%
Retail Customers
38,843,860
44.8%
38,817,716
46.8%
- mortgage loans
26,651,564
30.7%
26,710,997
32.2%
in PLN
22,526,701
26.0%
22,141,389
26.7%
in foreign currencies
4,124,863
4.8%
4,569,608
5.5%
- cash loans
8,052,253
9.3%
7,701,994
9.3%
- other retail loans
4,140,043
4.8%
4,404,725
5.3%
Lease receivables
400,416
0.5%
620,444
0.7%
Budget sector
58,956
0.1%
84,487
0.1%
Other financial entities
1,390,575
1.6%
796,523
1.0%
Loans and advances, gross
86,792,070
100.0%
82,968,369
100.0%
Quality of loan portfolio
The ratio of impaired exposures to gross loans and advances to Customers and measured at amortised cost stood at 3.3%
at the end of 2022, a decrease compared to the end of 2021 by 0.4 p.p. Impairment coverage of impaired exposures was
60.2% at the end of 2022 and increased by 2.9 p.p. compared to 2021.
Table 87. Write-down coverage of loan portfolio measured at amortised cost
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Total gross loans and advances to Customers
86,792,070
82,968,369
3,823,701
4.6%
Impairment allowances
(2,898,800)
(2,843,618)
(55,182)
1.9%
Total net loans and advances to Customers
83,893,270
80,124,751
3,768,519
4.7%
Exposures without impairment triggers
Gross balance sheet exposure
83,891,030
79,862,932
4,028,098
5.0%
Allowance
(1,150,978)
(1,062,301)
(88,677)
8.3%
Net balance sheet exposure
82,740,052
78,800,631
3,939,421
5.0%
Impaired exposures (stage 3)
Gross balance sheet exposure
2,901,040
3,105,437
(204,397)
(6.6%)
Impairment allowance
(1,747,822)
(1,781,317)
33,495
(1.9%)
Net balance sheet exposure
1,153,218
1,324,120
(170,902)
(12.9%)
Indicator
31.12.2022
31.12.2021
change
Share of impaired exposures in the gross portfolio
3.3%
3.7%
0.4 p.p.
Allowance coverage of impaired exposures
60.2%
57.4%
2.9 p.p.
Table 88. Quality of loan portfolio measured at amortised cost
thousand PLN
31.12.2022
31.12.2021
Total gross
of which:
impairment
share %
Total gross
of which:
impairment
share %
Business entities with the
exception of farmers
40,712,663
1,260,105
3.1%
35,774,425
1,207,284
3.4%
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thousand PLN
31.12.2022
31.12.2021
Total gross
of which:
impairment
share %
Total gross
of which:
impairment
share %
Farmers
6,835,131
578,257
8.5%
7,755,784
633,557
8.2%
Retail Customers
38,843,860
997,425
2.6%
38,817,716
1,127,343
2.9%
- mortgage loans
26,651,564
481,414
1.8%
26,710,997
522,335
2.0%
in PLN
22,526,701
173,069
0.8%
22,141,389
167,127
0.8%
in foreign currencies
4,124,863
308,345
7.5%
4,569,608
355,208
7.8%
- cash loans
8,052,253
408,864
5.1%
7,701,994
489,948
6.4%
- other retail loans
4,140,043
107,147
2.6%
4,404,725
115,060
2.6%
Lease receivables
400,416
65,253
16.3%
620,444
137,253
22.1%
Loans and advances, gross
86,792,070
2,901,040
3.3%
82,968,369
3,105,437
3.7%
The value of collateral held for Customer loans at the end of 2022 amounted to PLN 1,953,998 thousand. Detailed
information on collateral held is included in Note 55.2. of the Separate Financial Statements for the year ended 31
December 2022.
Liabilities and equity
As at 31 December 2022, the Bank's total liabilities amounted to PLN 134,893,224 thousand and were PLN 19,924,607
thousand or 17.3% higher than at the end of 2021. The share of liabilities in the Bank's total liabilities and equity was
92.3% in the period under review (+1.3 p.p. compared with the end of 2021).
Table 89. Liabilities and equity
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Amounts due to Central Bank
8,713
-
8,713
-
Amounts due to banks
1,805,219
2,621,155
(815,936)
(31.1%)
Derivative financial instruments
3,147,855
1,918,032
1,229,823
64.1%
thousand PLN
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Fair value adjustment of hedging instruments and
hedged items
(451,646)
44,107
(495,753)
-
Amounts due to Customers
120,429,051
101,823,600
18,605,451
18.3%
Securities issued
-
-
-
-
Subordinated liabilities
4,416,887
4,334,572
82,315
1.9%
Lease liabilities
718,724
860,009
(141,285)
(16.4%)
Other liabilities
2,371,804
1,504,486
867,318
57.6%
Current income tax liabilities
223,326
164,660
58,666
35.6%
Provisions
2,223,291
1,697,996
525,295
30.9%
Total liabilities
134,893,224
114,968,617
19,924,607
17.3%
Share capital
147,593
147,519
74
0.1%
Supplementary capital
9,110,976
9,110,976
0
0.0%
Other reserve capital
3,136,599
2,946,115
190,484
6.5%
Revaluation reserve
(1,150,000)
(595,707)
(554,293)
93.0%
Retained earnings
(29,894)
(216,260)
186,366
(86.2%)
- previous years’ results
(400,786)
(400,786)
0
0.0%
- net profit for the period
370,892
184,526
186,366
101.0%
Total equity
11,215,274
11,392,643
(177,369)
(1.6%)
Total liabilities and equity
146,108,498
126,361,260
19,747,238
15.6%
As at 31 December 2022, shareholders' equity amounted to PLN 11,215,274 thousand and decreased by 1.6%, i.e. by PLN
177,369 thousand, compared with 31 December 2021. The share of total equity in the Bank's total liabilities and equity
was 7.7% at the end of 2022 (compared with 9.0% at the end of last year).
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Amounts due to Customers
At the end of 2022, liabilities to Customers amounted to PLN 120,429,051 thousand and were higher by PLN 18,605,451
thousand, or 18.3%, compared to the end of 2021.
Table 90. Amounts due to Customers by products
31.12.2022
31.12.2021
thousand PLN
share %
thousand PLN
share %
Current accounts
81,196,391
67.4%
88,434,911
86.9%
Term deposits
37,208,104
30.9%
11,398,894
11.2%
Loans and advances received
491,823
0.4%
101,666
0.1%
Settlements of securitization transaction
384,659
0.3%
762,318
0.7%
Other liabilities
1,148,074
1.0%
1,125,811
1.1%
Total amounts due to Customers, including:
120,429,051
100.0%
101,823,600
100.0%
deposits
119,937,228
99.6%
101,721,934
99.9%
Equity
As at the end of 2022, the Bank's equity amounted to PLN 11,215,274 thousand, which was PLN 177,369 thousand, or
1.6%, less than at the end of 2021.
According to Resolution No. 6 of the Bank's Ordinary General Meeting of 27 June 2022, the Bank's profit after tax (net
financial result) for the completed financial year 2021, amounting to PLN 184,526,041, was fully transferred to reserve
capital.
In addition, the increase in equity was influenced by the change in the revaluation reserve (a decrease of PLN 554,293
thousand compared to the end of 2021). The share capital balance also increased in 2022 as a result of the issue of series
M shares (increase of PLN 74 thousand).
Own funds and capital ratios
The calculation of the capital adequacy of the Bank and the Group as at 31 December 2022 has been performed applying
the provisions of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013. (CRR) on
prudential requirements for credit institutions and investment firms, as amended by Regulation (EU) 2019/876 of the
European Parliament and of the Council of 20 May 2019.(CRR2) in relation to leverage ratio, net stable funding ratio, own
funds and minimum eligible liabilities requirements, counterparty credit risk, market risk, exposures to central
counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements.
On 12 December 2017, the European Parliament and the Council of the EU adopted Regulation No 2017/2395 amending
Regulation (EU) No 575/2013 as regards transitional arrangements for mitigating the impact of the introduction of IFRS 9
on own funds and for treating as large exposures certain exposures to public sector entities denominated in the domestic
currency of any Member State. The regulation was in force from 1 January 2018. The Bank applied the transitional
provisions provided by the regulation, which means that the full impact of the implementation of IFRS 9 was not taken
into account for the purposes of assessing the Bank's capital adequacy.
On 27 June 2020, Regulation (EU) 2020/873 of the European Parliament and of the Council of 24 June 2020, amending
Regulations (EU) No 272/2013 and (EU) 2019/876 as regards certain adjustments in response to the COVID-19 pandemic,
entered into force, allowing, inter alia, a reduction in risk weights for a portion of SME loans, a temporary partial
exclusion from the calculation of Common Equity Tier 1 items of the amount of unrealised gains and losses measured at
fair value through other comprehensive income in relation to the COVID-19 pandemic.
As of 31 December 2022, the adjustment related to the temporary partial exclusion from the calculation of Common
Equity Tier 1 capital items of the amount of unrealized gains and losses measured at fair value through other
comprehensive income in connection with the COVID-19 pandemic was PLN 373,716 thousand.
On 23 December 2020, Commission Delegated Regulation (EU) 2020/2176 of 12 November 2020, amending Delegated
Regulations (EU) No 241/2014 with regard to the deduction of software assets from Common Equity Tier 1 items, entered
into force.
As at 31 December 2022, the adjustment in Common Equity Tier 1 capital related to other intangible assets amounted to
PLN 388,016 thousand.
Pursuant to the Resolution of the Annual General Meeting of the Bank dated 27 June 2022, the entire profit of the Bank for
2021, in the amount of PLN 184,526 thousand, was allocated to reserve capital.
The Bank's total capital ratio at 31 December 2022 was 16.25%, a decrease of 1.52 p.p. compared to December 2021. The
Bank's Common Equity Tier 1 (CET I) capital ratio and Tier 1 (Tier 1) capital ratio at 31 December 2022 were identical at
11.80% (decrease by.1.16 p.p. compared to the year-end 2021). The decrease in capital adequacy ratios was mainly due to
a deterioration in the result of unrealised gains and losses measured at fair value through other comprehensive income,
while the amount of risk-weighted exposure increased.
Total own funds at 31 December 2022 decreased by PLN 653,928 thousand compared to 31 December 2021.
Total risk exposure as at 31 December 2022 amounted to PLN 91,512,357 thousand and increased by PLN 4,101,919
thousand compared to 31 December 2021.
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Table 91. Own funds and capital ratios of the Bank
in PLN thousand
12 months
ended
31.12.2022
12 months
ended
31.12.2021
change y/y
thousand
PLN
%
Tier I capital
– share capital
147,593
147,519
74
0.1%
– supplementary capital
7,259,316
7,259,316
0
0.0%
– reserve capital
4,311,106
4,120,622
190,484
4.6%
– funds for general banking risk
627,154
627,154
0
0.0%
– intangible assets
(437 180)
(376 874)
(60 306)
16.0%
– other components of equity included in Tier I capital
(1,112 036)
(447 774)
(664 262)
148.3%
Total Tier I capital
10,795,953
11,329,963
(534 010)
(4.7%)
Tier 2 capital
– subordinated liabilities classified as Tier II capital
4,078,993
4,198,911
(119 918)
(2.9%)
Total own funds
14,874,946
15,528,874
(653 928)
(4.2%)
Risk exposure due to:
– credit risk
81,597,974
77,832,976
3,764,998
4.8%
– market risk
1,307,210
1,345,487
(38 277)
(2.8%)
– operational risk
8,550,308
8,202,110
348,198
4.2%
– CVA adjustment
56,865
29,865
27,000
90.4%
Total risk exposure
91,512,357
87,410,438
4,101,919
4.7%
The Bank’s capital ratio
31.12.2022
31.12.2021
change
Total Capital Ratio (TCR)
16.25%
17.77%
(1.52 p.p.)
Tier I Capital Ratio
11.80%
12.96%
(1.16 p.p.)
Pursuant to the Act of 5 August 2015 on macroprudential supervision over the financial system and crisis management in
the financial sector (Journal of Laws 2015, item 1513, as amended), a capital conservation buffer of 2.5% was introduced
starting from 1 January 2019.
The Polish Financial Supervision Authority in a communication dated 8 November 2021, announced that, based on the
provisions of the Act of 5 August 2015 on macroprudential supervision of the financial system and crisis management in
the financial system and after taking into account the opinion of the Financial Stability Committee, confirmed the
identification of ten banks as other systemically important institutions (O-SIIs).
As a result of the review, the Authority concluded that there were no grounds for revoking or amending the decision of 4
October 2016, as amended by the Commission's decision of 19 December 2017, to impose on the Bank (on a consolidated
and individual basis) an Other Systemically Important Institution buffer equivalent to 0.25% of the total risk exposure
amount calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013.
The Polish Financial Supervision Authority, by letter dated 23 December 2022, recommended mitigating the risks
occurring in the Bank's operations by maintaining own funds to cover an additional capital charge to absorb potential
losses arising from stress events, of 0.80 p.p. at the individual level and 0.77 p.p. at the consolidated level over the total
capital ratio referred in Article 92(1)(c) of Regulation (EU) No 575/2013, plus the additional own funds requirement
referred in Article 138(2)(2) of the Banking Act and the combined buffer requirement referred in Article 55(4) of the
Macroprudential Supervision Act. The additional surcharge should consist entirely of Common Equity Tier 1 capital.
As a result of the changes described above, the minimum levels of solvency ratios under the law and administrative
decisions issued by the PFSA as at the reporting date of 30 June 2022 on a consolidated basis are as follows:
Minimum levels of capital adequacy ratios of the Bank
31.12.2022
Common Equity Tier I (CET I) capital ratio
8.05%
Tier I capital ratio
9.55%
Total capital ratio
11.55%
Minimum requirement for own funds and eligible liabilities (MREL)
On 3 June 2022, the Bank received a letter from the Bank Guarantee Fund ("BFG") regarding the joint decision of the
resolution authorities, i.e. the Single Resolution Board ("SRB"), the Central Bank of Hungary, Finanstilsynet, the Bank of
England and the BFG, on the minimum level of own funds and eligible liabilities ("MREL").
The joint decision indicates that a group compulsory restructuring plan provided for a single point of entry (SPE)
compulsory restructuring strategy. The preferred tool for the Bank's compulsory restructuring is the open bank bail-in
tool.
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The MREL requirement set by the Fund, in consultation with the SRB, for BNP Paribas Bank Polska S.A. is:
15.99% of TREA, the total risk exposure amount (TREA) calculated in accordance with Article 92(3) and (4) of Regulation
(EU) No 575/2013 (hereinafter: MREL-TREA) and
5.91% of TEM, the total exposure measure (TEM) calculated in accordance with Article 429 and Article 429a of
Regulation (EU) No 575/2013 (hereinafter: MREL-TEM).
At the individual level the Bank is required to meet the MREL requirement by 31 December 2023.
At the same time, the Fund, in consultation with the SRB, on 3 June 2022 defined interim targets for the Bank to meet by
the end of each calendar year during the period of reaching the MREL target:
in relation to TREA are: 11.99% at the time of communicating to the Bank the agreement and joint decision on MREL and
13.99% at the end of 2022,
in relation to TEM are: 3.00 per cent at the time of communicating to the Bank the agreement and joint decision on
MREL and 4.46 per cent at the end of 2022.
On 22 September 2022, the Fund announced an update to the MREL Determination Methodology and, in particular, an
update to the pathway to the target minimum level of own funds and eligible liabilities expressed as a percentage of total
risk exposure (MREL-TREA). The Fund has adopted new assumptions for the determination of the interim MREL-TREA
requirement for entities for which the use of a mandatory restructuring facility is assumed in the compulsory
restructuring plans or group compulsory restructuring plans ("plans"). In the current planning cycle, the Fund will
determine the interim MREL-TREA requirement that entities should achieve by 31 December 2022, based on the same
formula as for the interim MREL-TREA requirement that entities are required to comply with from 1 January this year.
The Fund informed that it will apply the revised rules for setting the interim MREL requirement in accordance with the
timetable for the adoption of reviews and updates of the compulsory restructuring plans and group compulsory
restructuring plans. For domestic entities that are subsidiaries in cross-border groups for which the adoption of plans and
the setting of minimum levels of own funds and eligible liabilities are made by joint decision, it may be the case that the
adoption of joint decisions incorporating the revised path to the MREL-TREA target level will occur after 1 January 2023.
In such cases, pending the adoption of new joint decisions addressing the updated MREL-TREA interim requirements, the
Fund will take into account the fact of pending changes to the MREL-TREA interim level when monitoring compliance
with the MREL-TREA interim requirement.
In the context of the above, the Bank has assumed that the MREL requirement in relation to TREA will be 11.99% at the
end of 2022, pending a new joint decision of the resolution authorities, i.e. the Single Resolution Board (SRB), the Central
Bank of Hungary, Finanstilsynet, the Bank of England and the BGF, on the minimum level of own funds and eligible
liabilities ("MREL").
The entire MREL requirement should be met in the form of own funds and liabilities meeting the criteria set out in Article
98 of the BGF Act, which transposes Article 45f(2) of BRRD2. According to the Decision, the part of MREL corresponding to
the recapitalisation amount (CAR) will be met in the form of AT1, T2 instruments and other subordinated eligible
liabilities acquired directly or indirectly by the holding company.
The Bank complies with the defined MREL requirements as at 31 December 2022.
MREL ratio
implementation
TREA
17.09%
TEM
9.82%
Financial ratios
In 2022, the Bank's return on equity (ROE), calculated on a reported basis was 3.3% and was 1.8 p.p. higher than in 2021.
Return on assets (ROA), calculated in a similar manner, was 0.3% and increased by 0.1 p.p. compared to 2021. The levels
of the return ratios are largely distorted by the occurrence in 2022 of the negative impact of the credit moratoria (see the
Bank's Financial Performance chapter) and the recognition, especially in 2022 and 2021, of significant risk provisioning
costs related to litigation relating to foreign currency mortgage loans.
The cost/income ratio calculated on the basis of reported volumes amounted to 56.8% (a level 4.6 p.p. higher compared to
2021. - mainly as a result of the recognition of the impact of credit moratoria in net interest income and higher BFG and
IPS costs). The ratio calculated without the impact of BFG, IPS and credit moratoria would have been 42.5%, i.e. 6.6 p.p.
lower than in 2021.
Net interest margin calculated in relation to average assets amounted to 2.5% and was similar to the level calculated for
2021. The positive impact of the increase in NBP interest rates in 2022 (reference rate higher by 500 bps y/y) was
neutralised by the recognition of the PLN 895 million negative impact of credit moratoria.
Minor changes in ratios representing the ratio of net and gross loans to deposits and funding sources reflect the good
liquidity position observed in 2022 and 2021.
Table 92. Financial ratios
31.12.2022
31.12.2021
31.12.2020
change
2022/2021
Return on equity
(1)
3.3%
1.5%
6.3%
+1.8 p.p.
Return on assets
(2)
0.3%
0.2%
0.6%
+0.1 p.p.
Net interest margin
(3)
2.5%
2.5%
2.7%
0.0 p.p.
Cost/Income
(4)
56.8%
52.1%
52.6%
+4.6 p.p.
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31.12.2022
31.12.2021
31.12.2020
change
2022/2021
Costs/income without BFG, IPS and credit moratoria
42.5%
49.1%
48.2%
(6.6 p.p.)
Cost of risk
(5)
(0.33%)
(0.30%)
(0.79%)
(0.03 p.p.)
Cost of risk without impact of sale of receivables*
(0.37%)
(0.41%)
(0.85%)
+0.04 p.p.
Net loans/deposits
(6)
70.7%
80.0%
78.7%
(9.3 p.p.)
(1) Net profit in relation to average equity, calculated based on quarter-end balances.
(2) Net profit in relation to average assets, calculated based on quarter-end balances.
(3) Net interest income in relation to average assets, calculated based on quarter-end balances. Annualization of net interest income taking into account the actual number of days.
(4) Total general administrative expenses, amortization and depreciation in relation to total net banking income, calculated as the total of net interest income, net fee and commission income, dividend
income, net trading income, net investment income, result on hedge accounting and other operating income and expenses.
(5) Net impairment allowances on loans and advances and provisions for contingent liabilities in relation to the average balance of net loans and advances to Customers measured at amortised cost,
calculated based on quarter-end balances. Annualization of the result from write-offs taking into account the actual number of days.
(6) Ratio of loans and advances to Customers (net) to Customer deposits. Balance at the end of the period.
* Calculation made excluding the impact of the sale of non-performing loan portfolios (PLN +34,044 thousand in 2022, PLN +84,920
thousand in 2021, PLN +42,368 thousand in 2020).
Average interest rates applied by the Bank
Table 93. Average interest rates applied by the Bank*
Product
PLN
EUR
2022
2021
2022
2021
Deposits (below categories)
1.67%
0.04%
Households and non-commercial institutions
1.52%
0.04%
Non-financial enterprises
1.88%
0.04%
Loans (below categories)
6.79%
3.17%
1.57%
1.24%
Households and non-commercial institutions
6.71%
3.64%
2.52%
2.04%
Non-financial enterprises
6,94%
2.09%
1.56%
1.23%
* based on the Bank's mandatory reporting to the NBP Statistics Department
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Paulina Angel, Project Manager
Risks and opportunities
Risk management system 148
Principal types of risk 150
ESG risk management 164
Climate-related risks and opportunities 168
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Risk management system
The risk management system is an integrated set of rules, mechanisms and tools (including, inter alia, policies and
procedures) relating to risk processes. Risk management is part of the Bank's overall management system. In addition to
regulatory requirements, the Bank takes into account the special nature, scale and complexity of its business operations
and the associated risks. The main objectives of the risk management system are:
ensure early identification and appropriate management of all significant risks associated with the business,
supporting the implementation of the business strategy by effectively controlling the level of risk and maintaining it
within the adopted risk appetite,
a representation of the Bank's risk attitude and risk culture,
measuring or estimating and monitoring risks, including hedging potential losses through appropriate controls,
limiting risks by defining a system of limits and rules for dealing with exceedances,
definition of an organizational structure adapted to the size and profile of the risks incurred.
The risk management system functioning in the Bank is organized based on a scheme of three independent lines of defense,
used to define roles and responsibilities to achieve effective supervision and organization of risk management in the Bank:
the first line of defense consists of business units that are responsible for managing risks in the Bank's operations,
including compliance with control mechanisms,
the second line of defense is constituted by the organizational units of the Risk Area, the Security and Business Continuity
Management Division and the Compliance Monitoring Division, which are responsible for managing individual risks,
including measuring, monitoring, controlling and reporting risks, independently of the first line,
the third line of defense involves the activities of the Internal Audit Division, which performs independent assessments of
risk management activities carried out by both the first and second lines of defense.
The chief role in the Bank's risk management system is played by the Bank's Management Board, which determines the
Bank's risk management strategy, risk appetite and adopts risk management policies, as well as sets limits for significant
risks and risk control procedures. The risk management principles have their source in the document Risk Management
Strategy at BNP Paribas Bank Polska S.A. defined by the Bank's Management Board and approved by the Supervisory Board.
The organization of the Bank's risk management system primarily takes into account the role of the Supervisory Board, the
Bank's Management Board, dedicated committees (Audit Committee and Risk Committee at the Supervisory Board level,
Asset and Liability Committee (ALCO), Risk Management Committee, Retail Banking Risk Committee, Personal Finance Risk
Committee, Credit Committee, Problem Loan Committee, Products, Services, Transactions and Activities Acceptance
Committee and Internal Control Coordination Committee), Risk Area, Compliance Monitoring Division and Security and
Business Continuity Management Division.
Assessment of internal capital adequacy
The purpose of the process of assessing the adequacy of internal capital is to monitor and control the level of the Bank's
internal capital. The implementation of the ICAAP process is dictated by the aspiration to maintain the Bank's stable
financial position, guaranteeing the Bank's operation even if unexpected losses are incurred. The Bank has an obligation to
ensure that the risk management process is in line with the Bank's risk profile, and to mitigate excessive risks in the Bank's
operations. Details of the process are defined in the Policy on Internal Capital Estimation at BNP Paribas Bank Polska S.A.
The Bank has developed comprehensive principles for identifying and assessing risks as part of its response to the
requirements of the supervisory review and assessment process. The principles are designed to identify and assess all risks
to which the Bank is or may be exposed, taking into account regulatory requirements, best practices and the use of the
Bank's proven existing risk management processes. The Bank takes into account the specific nature, scale and complexity of
its business activities and the associated risks, ensuring that all significant risks in the Bank's operations are measured and
mitigated. The Bank seeks to identify and assess risks arising from the internal and external environment that could have a
significant impact on the Bank's financial stability.
Identification of potentially material risks involves isolating threats and potential risks that may occur in the future with a
reasonable degree of probability.
The risk management process is designed to:
protect the Bank from the materialization of risk,
ensure an adequate assessment of the capital requirements necessary for the identified risks.
The risk identification process is carried out at the Bank annually.
Assessment of the level of materiality of the risks identified in the identification process includes:
defining materiality of risks,
defining factors that determine the materiality of risks,
conducting an assessment of the materiality of risks,
preparation of an assessment report.
The process of assessing the materiality of risks is carried out at the Bank annually.
The Bank identifies the following types of risks:
permanently significant - inherent in the profile of the business (does not require periodic materiality assessment),
significant:
- risks in relation to which the Bank has historically incurred costs related to their implementation,
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- risk exposure, the severity of losses, and the lack of adequate risk mitigation processes and procedures expose the Bank
to unexpected financial losses (risks for which the materiality rating is least at the average level),
insignificant - risks for which the assessment of materiality is at a low level.
As a result of the risk identification and materiality assessment process conducted in 2022, the structure of the identified
risks is as follows:
Internal capital reporting is focused on presenting the results of monitoring the level of internal capital and the main
factors determining its level. The Bank reports capital on a monthly basis on both a stand-alone and consolidated basis.
Reports are presented at the Risk Management Committee meeting on a monthly basis and on a quarterly basis to the
Bank's Management Board and Supervisory Board.
A review of the capital adequacy process is conducted once a year, and the review report is submitted to the Management
Board and the Supervisory Board. In addition, internal audit regularly conducts an independent review of the ICAAP process.
The Bank uses two approaches to measure risk: quantitative and qualitative. The use of a particular approach is linked to
the characteristics of the risk.
Risk measurement methods:
quantitative methods - are used in cases where the Bank has information on risk realisation and is able to measure a
quantitative characteristic,
qualitative methods - used when the Bank has no information collected on the historical realisation of risk or the effect of
volatility of a risk measure is determined by many risk factors, among which the Bank is not able to distinguish the effect
related to the source of the assessed risk. The Bank considers the risk as difficult to measure and performs the
assessment using the qualitative method, presenting the qualitative characteristics of the risk realization.
Chart 17. The structure of internal capital in the BNP Paribas Bank Polska S.A. Group as at 31 December 2022
Credit risk; 76.54%
Interest risk rate in the banking book;
5.99%
Market risk; 0.63%
Operational risk;
7.93%
Business risk; 7.18%
Model risk; 0.47%
Insolvency risk
(including the risk of
excessive leverage);
0.18%
ESG risk; 1.09%
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Risk appetite
For the material risks identified, the Bank defines the risk appetite. By determining the level of risk appetite, the Bank sets
its risk profile and the attitude adopted towards risk. The risk appetite determines the maximum level of risk that the Bank
is prepared to accept in pursuit of the business strategy and financial plan.
The risk appetite, within the limits set by the risk tolerance, determines how the Bank uses its risk-taking capacity by
determining, for each risk type, the degree of risk exposure that a particular area can take. The Bank specifies the level of
risk appetite in the form of risk measures that reflect the Bank's current and future risk appetite. All methods and
procedures are periodically reviewed for adequacy and reliability. The level of risk appetite is determined by the Bank's
Management Board and requires the approval of the Supervisory Board.
addition, the Bank monitors individual risks using a formal system of limits, which is established in such a way that:
the Bank complied with supervisory standards,
the desired risk profile defined in the Bank's business strategy and risk management strategy is maintained,
limits did not exceed the risk level acceptable to the BNP Paribas Group.
If limits are exceeded, corrective actions are taken to reduce the value of the risk in accordance with the procedures in
place at the Bank. The information system used in risk management ensures collection of data on operations and
transactions and their impact on the Bank's risk profile. The Bank has risk control and risk management policies governing
the handling of crisis events.
Stress tests
Pursuant to the Methodology of the stress testing programme at BNP Paribas Bank Polska S.A. The Bank conducts, among
others, the following types of bottom-up tests:
stress tests based on the recommendations of the Polish Financial Supervision Authority,
business model stress tests,
, internal capital stress tests,
recovery plan stress tests.
Stress tests are an important tool in the risk management process. They allow the risk measurement to be extended to
include sensitivity to abnormal changes in market parameters, which are significantly different from those observed in
periods of normal functioning of the financial markets. The objective of the stress testing programme is to assess the
potential risks to which the Bank is exposed under hypothetical market conditions. The macroeconomic assumptions are
developed by the Bank's Chief Economist. The stress testing programme fulfils the requirements of Guideline
EBA/GL/2018/04 of 19 July 2018 on stress testing.
The stress testing programme covers:
sensitivity analysis
scenario analysis,
reverse stress testing.
The Bank conducts tests with reference to the level of risk appetite expressed in terms of risk appetite measures and
capital targets specified in the Capital Management Policy at BNP Paribas Bank Polska S.A. Through stress testing, the Bank
assesses the reliability of its financial plan and capital plan under stress conditions to ensure that the Bank meets the
capital requirements applicable to it. The Bank's Management Board approves the stress testing programme and
supervises its implementation and results.
Principal types of risk
Credit risk
Credit risk is the risk of the Bank incurring a loss on account of a failure to meet its obligations by the deadline specified in
the agreement as a result of deterioration or loss of creditworthiness by the Customer.
The Bank’s credit risk management system has been defined in the Credit Policy of BNP Paribas Bank Polska S.A. adopted
by the Management Board. Detailed financing principles and criteria applicable to the product offering of each business
line, types of available loans, objectives, financing terms and limits have been defined in the credit policies of each business
line. It is the Bank’s intention, in accordance with the criteria established in the credit policy, to cooperate with Customers
of a good reputation and a sound economic and financial condition.
Credit policies also set out detailed rules for identifying, measuring and accepting risk, securing loan repayment and
monitoring Customers during the life of the loan agreement.
The organisation of the credit risk management process aligned with the business line structure in the Bank. A central role
in the credit risk management system is performed by the Risk Area, which is an organisationally separate unit managed by
a Member of the Management Board acting in the capacity of the Chief Risk Officer. Credit risk management activities are
supported by the Risk Management Committee as well as the Retail Banking/Personal Finance Risk Committees
The credit risk of the Customers is assessed using rating and scoring classification systems and the risk classification
standards defined in IFRS.
Credit decisions are made in accordance with the decision-making model approved by the Management Board of the Bank
and aligned with the standards imposed by the BNP Paribas Group. The decision-making model takes into account the
structure of the business lines, determines the number of decision levels, the scope of their competence as well as the
principles, criteria and conditions to be satisfied in the credit decision-making process. The value thresholds for the
decision-making competence depend on such criteria as the Customer segment, risk profile and the borrowing period. At
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each competence level, credit decisions are taken by two employees (four-eye principle), namely a representative of the
business line and a representative of the organisational unit responsible for Customer and transaction risk assessment
performed independently of the business line. For Customers whose credit risk assessment is performed in accordance with
simplified risk assessment principles or models, including scoring models approved by the Risk Management Committee or
the Retail Banking/Personal Finance Risk Committees, credit decisions may be taken by one representative of the business
line.
The Bank applies the following credit risk management principles:
each credit transaction requires comprehensive credit risk assessment expressed in internal rating or scoring,
thorough and diligent financial analysis serves as the basis for regarding the Customer’s financial information and
collateral-related data as reliable; prudential analyses performed by the Bank always take into account a necessary
margin of safety
as a rule, the basis for Client’s financing is its ability to generate cash flows that ensure repayment the liabilities to the
Bank,
the credit risk assessment is additionally verified by credit risk assessment officers, independent of the business staff,
the pricing terms of a credit transaction must cover the risk of such a transaction,
credit risk is diversified in terms of geographical regions, industries, products and Customers,
credit decisions may only be taken by authorised employees,
a Customer and transactions made with the Customer are monitored transparently from the perspective of the Customer,
in a manner that strengthens the relationship between the Bank and the Customer.
Credit risk management in the Bank’s subsidiaries
The principles of the Bank's supervision over the credit risk generated by the activity of subsidiaries is specified in the
Credit Policy of BNP Paribas Bank Polska S.A.
The Bank recommends, reviews and accepts policies, principles and methodologies applied by its subsidiaries in terms of
credit risk management.
In the Bank and its subsidiaries, parallel credit risk management methods are applied, including:
a rating system for Corporate Banking Customers and Small and Medium Enterprises Banking,
risk classification system according to IFRS standards,
assessment of the creditworthiness of the common Clients of Bank and subsidiaries,
a model of making credit decisions,
the Bank's internal limits system for concentration risk, including limits on the subsidiaries’ portfolios of receivables.
Measurement of impairment of financial assets
The principles of measuring impairment are described in the Impairment of financial assets section within the Financial
Statements.
In 2022, as part of the adjustment of the level of write-downs to expectations of the future macroeconomic situation, the
level of provisions increased by PLN 207,844 thousand, which included:
provisions created with regard to updated projections of macroeconomic variables included in the applied IFRS9 model in
the amount of PLN 65,374 thousand and
additional provisions for risk factors not directly included in the macroeconomic model in the amount of PLN 142,470
thousand (taking into account the provisions in the amount of PLN 9,000 thousand in 2021, the balance of these
provisions as of 31 December 2022 amounted to PLN 151,470 thousand).
In addition, the level of write-downs in 2022 was affected by the following movements on provisions through Post Model
Adjustments:
fully released provision related to the negative effects of COVID (in the amount of PLN 200,130 thousand),
release of provisions in the amount of PLN 65,170 thousand with reference to the reversal of legislative changes that had
a downward effect on expected recovery levels on the farmer loan portfolio (significantly affecting the result in the
institutional loan segment),
increase in provisions related to Customers with the highest exposure to turbulence in the economic environment in the
amount of PLN 9,700 thousand. The Group released provisions created due to the negative impact of energy prices in
2021 in the amount of PLN 15,300 thousand reflecting this risk directly in the assessment of individual CTB/SME Clients.
At the same time, PLN 25,000 thousand provision for Customers most exposed to turbulence in the economic environment
was created,
creation of provision in the amount of PLN 24,200 thousand through Post Model Adjustments for planned changes in
terms of LGD model (which is a result of the update of the level of these provisions). Taking into account the creation of
provisions, as of 31 December 2022, the balance of these provisions amounted to PLN 53,700 thousand, compared to PLN
29,500 thousand as of 31 December 2021,
with regard to the portfolio of loans secured on real estate in PLN, the Bank adjusted the PD/LGD parameters for
exposures transferred to Phase 2 as part of the identification of vulnerable Clients. This change resulted in the creation of
provisions in the amount of PLN 76,901 thousand.
Taking into account the elements described above - the Group released PLN 12,029 thousand in additional provisions (in
the form of Post Model Adjustments). The balance of these additional provisions as of 31 December 2022 amounted to PLN
307,071 thousand, while the balance as of 31 December 2021 amounted to PLN 319,100 thousand.
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Due to the ongoing war in Ukraine and sanctions imposed on Russia and Belarus, the Bank analysed the credit exposures
directly related to these countries and based on this, has not identify any significant exposures both in the portfolio of
institutional Clients and individual Clients. At the same time, the Bank monitors the situation of Clients on an ongoing basis
with taking into account the collateralisation of the loan portfolio by adequately reflecting the level of risk on these Clients
in the amount of allowances. The Group has identified institutional Customers who are vulnerable to the effects of the
situation in Ukraine, including, in particular, Customers whose business is linked to the economies of the above countries
and whose business is vulnerable to the embargo on Russian gas. As of 31 December 2022, these Customers accounted for
PLN 931,000 thousand of exposure and were classified in Stage 2, as Customers for whom there was a significant increase
in credit risk. In connection with the recognition of an allowance for expected credit losses for these Customers over the
entire remaining expected life, the level of the allowance for these Customers increased by PLN 21,904 thousand.
Restructuring and debt collection
In 2022, a total of PLN 762.5 million in receivables were collected, of which:
PLN 401.7 million - as a result of portfolio restructuring (corporate entities PLN 259.6 million, SME PLN 140.4 million,
microenterprises PLN 0.4 million, individual Customers PLN 1.3 million),
PLN 251.1 million - as a result of debt collection activities (corporate entities PLN 24.1 million, SME PLN 39.8 million,
microenterprises PLN 80.3 million, individual Customers PLN 83.3 million, mortgages PLN 23.6 million),
PLN 109.7 million - as a result of impaired portfolio sales.
Quality of the Bank's loan portfolio
Structure of loans by stages
The share of receivables classified to Stage 3 in 2022 was significantly better than in previous years. The share of loans at
amortised cost classified to Stage 3 in the Group decreased from 3.6% at the end of 2021 to 3.3% at the end of 2022.
Despite the negative macroeconomic factors, the Group maintained its NPL ratio at a stable level. This was possible with
measures taken at various stages of servicing non-performing loans in the process of active NPL portfolio management, in
particular, effective monitoring of Customers being potentially at risk of entering Stage 3 and high efficiency of debt
collection activities.
Chart 18. NPL ratio - share of receivables measured at amortised cost, classified as Stage 3
At the end of 2022, the provision coverage of the portfolio classified as Stage 3 was 59.6%, which is an increase over the
coverage level at the end of 2021. It is the result of the creation of allowances for exposures in default status due to
changes in expected recovery levels and the aging effect of the Stage 3 portfolio. The decrease in the coverage level in the
fourth quarter of 2022 was influenced mainly by the NPL sales executed during the period, which were covered by a
provision significantly above average.
Chart 19. Provision coverage for the portfolio classified as Stage 3
Detailed information on the quality of the portfolio is presented in the financial performance section of the loan portfolio.
3.3%
3.3%
3.2%
3.4%
3.6%
4.4%
4.8%
5.3%
Q4 22Q3 22Q2 22Q1 22Q4 21Q3 21Q2 21Q1 21
58.2%
61.3%
61.0%
57.1%
58.5%
57.1%
50.0%
50.1%
59.6%
61.4%
60.8%
57.6%
57.4%
55.3%
49.5%
50.0%
62.5%
61.8%
60.3%
58.6%
55.2%
51.8%
48.7%
49.9%
Q4 22Q3 22Q2 22Q1 22Q4 21Q3 21Q2 21Q1 21
Institutional loans
Gross loans total
Individual loans
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The Group also actively monitors the structure of the credit portfolio, including in particular the industry structure. Details
are described in the Concentration risk section.
Concentration risk
Concentration risk is an inherent risk taken by the Bank within the framework of its statutory activity and is subject to a
specific management process and rules.
Management Board assesses the adopted concentration risk management policy in terms of the way it is applied, in
particular as regards its effectiveness and adequacy of rules implementation in the context of current and planned
activities and taking into account the risk management strategy. In the event of significant changes in the Bank's operating
environment or risk management strategy, the review of the adequacy of the concentration risk management process is
carried out immediately after the occurrence of such circumstances.
Mechanisms for identifying and measuring concentration risk and concentration limits, including limits on large exposures,
are used to limit concentration risk. Such mechanisms enable the Bank to monitor and maintain diversification of loan
portfolio at levels consistent with the Bank's strategy and risk appetite. The Bank's limit system also takes into account
external macroeconomic and sectoral conditions and prospects.
As at the end of 2022: the limits on a consolidated and stand-alone basis set out in Article 395 of the EU Regulation No.
575/2013 were exceeded with regard to BNP Paribas S.A. Group entities. In accordance with the applicable regulations, the
Bank reported the above-mentioned exceedances to the supervisory authorities and took measures to eliminate similar
exceedances in the future.
With regard to the exposure limit to entities outside the BNP Paribas S.A. Group, the limits were not exceeded, with the
largest exposure representing 11.43% of Tier 1 capital on a stand-alone basis and 11.46% of Tier 1 capital on a consolidated
basis.
Internal limits for credit concentration risk are set for, among others:
selected economic sectors/ industries,
exposures denominated in foreign currency,
Customer segment (the Bank’s internal segmentation),
loans secured by a given type of collateral,
geographical regions,
he average probability of default
exposures with a specific rating (the Bank's internal rating scale),
exposures with a specific debt-to-income ratio,
exposures with a specific loan-to-value ratio.
Actions reducing the Bank's exposure to concentration risk may include systemic actions and case-by-case actions related
to a single / specific decision or transaction. Systemic actions limiting the concentration risk include:
limiting the scope of lending to specific types of Customers by modifying the credit policy,
reducing the concentration risk limits,
diversification of asset types at the level of the Bank's statement of financial position,
changing the business strategy to prevent excessive concentration
diversification in the types of collateral received.
The Bank's mitigating actions of a single / specific decision and transaction nature include:
limiting new transactions with a given Customer or group of connected Clients,
sale of selected assets / loan portfolios,
securitisation of assets,
establishment of new collateral for existing or new credit exposures.
The analysis of industry concentration performed by the Bank covers all the Bank's credit exposures to institutional
Customers.
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Chart 20. Share of industry in the institutional Clients' loan portfolio (industries above 5%)
The analysis of industry concentration performed by the Bank covers all the Bank's credit exposures to institutional
Customers.
Chart 21. Share of impaired loans (greater than 5%) in the portfolio of the industry
The BNP Group has the highest share in the “Industrial processing”, where the share of non-performing loans is less than
5%, similar to the previous year. On the other hand, the industry with the highest share of non-performing loans is
"Accommodation and food services," and accounts for only 1% in Institutional Clients' balance sheet exposure.
Detailed information on industry exposure can be found in Note 55.2 of the Consolidated Financial Statements of the BNP
Paribas Bank Polska Group for the year ended 31 December 2022.
As a result of the ongoing war in Ukraine and the economic sanctions imposed against Russia and Belarus, the Bank
analysed credit exposures directly related to these countries and based on this, did not identify significant exposures in
both the institutional and individual Customer portfolios.
24%
22%
15%
11%
5%
6%
2%
23%
18%
15%
11%
6%
6%
5%
0% 5% 10% 15% 20% 25% 30%
Industrial processing
Agriculture, forestry, hunting
Wholesale and retail trading
Real estate services
Construction
Professional, scientific and technical activities
Information and communication
31.12.2021 31.12.2022
19%
18%
10%
7%
7%
21%
9%
9%
8%
6%
0% 5% 10% 15% 20% 25%
Accommodation and food services
Culture, entertainment and recreation
Education
Agriculture, forestry, hunting
Construction
31.12.2021 31.12.2022
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Counterparty risk
Counterparty risk is the credit risk concerning the counterparty, with whom the transactions are concluded, and in case of
which the amount of liability may change in time depending on market parameters. Thus, counterparty risk is related to
transactions involving instruments the value of which may change in time depending on such factors as interest rates or
foreign exchange rates. The varying exposure may affect the Customer’s solvency and is of crucial importance to the
Customer’s ability to settle liabilities when the transaction matures. The exposure is determined by the Bank on the basis of
the current contract valuation as well as the potential future changes in the exposure, depending on the transaction type,
Customer type and settlement dates.
As at the end of December 2022, the counterparty risk was calculated for the following types of transactions: foreign
exchange transactions, interest rate swap transactions, FX options, interest rate options and commodity derivatives.
Counterparty credit risk for transactions which generate counterparty risk is assessed using the same methodology as the
one applied to loans. This means that in the credit process these transactions are subject to limits, the value of which
results directly from the assessment of Customer creditworthiness performed in the same way as in the process of credit
product offering. However, the assessment also takes into account the specific nature of transactions, in particular their
varying value in time or direct dependence on market parameters.
The principles applicable to foreign exchange transactions, derivative transactions as well as credit limit granting, use and
monitoring for transactions subject to counterparty risk limits have been regulated in dedicated procedures In accordance
with its policy, the Bank enters into all transactions on the basis of individually allocated limits and is guided by its
knowledge of the Client's. The Bank has defined groups of products offered to Customers depending on their knowledge,
experience and risk tolerance. The Bank has transparent principles for collateralising the counterparty risk exposures.
As a result of the COVID-19 pandemic, as well as the war in Ukraine and the economic sanctions imposed against Russia
and Belarus, the Bank observes increased volatility in market risk parameters, which is reflected in fluctuations in
counterparty risk exposure. The Bank assesses counterparty risk on an ongoing basis by conducting reviews of the portfolio
of Clients on which this risk exists. The Bank maintains the application of its basic principle of "Know Your Customer." In
connection with non-standard situations, some Customers may be asked for additional information related to changes in
their business conditions. The Bank also takes into account the higher volatility of the aforementioned parameters in its risk
assessment when entering into new transactions.
Market risk (including: interest rate risk in the trading book and currency risk)
The market risk management process at BNP Paribas is divided into interest rate risk management in the trading book and
currency risk management. The process is centralized, which means that all transactions that expose the Bank to the
aforementioned risks are transferred to the Financial Markets Division, which is responsible for operational risk
management within the limits granted. The unit responsible for measuring and monitoring the level of market risk is the
Market and Counterparty Risk Division, which is organizationally separated up to the level of the Bank's Management Board
from the units performing activities that expose the Bank to risk. The key participants in the market risk management
process are the Risk Management Committee, the Management Board and the Supervisory Board, which, within the scope
of the authority and responsibility defined in the written regulations, decide on and allocate the amounts of market risk
limits, the level of risk appetite, and monitor the level of their utilisation and the compliance of the business with the
adopted strategy.
In measuring market risk, the Bank uses, among other things, the Value at Risk (VaR) method. VaR is the change in the
market value of an asset or a portfolio of assets under certain assumptions about market parameters, over a fixed period of
time and with a given probability. It is assumed that VaR for the purpose of currency risk monitoring is determined with a
99% confidence level over a one-day time horizon. The VaR methodology is subject to at least an annual review of the
quality of implemented models, inter alia by performing a test comparing forecasted values and values determined on the
basis of actual changes in risk factors, on the assumption that the open position remains unchanged (historical verification
or back-testing).
In addition to VaR, the Bank used a number of other measures in its market risk management process, such as open
position limits for a given risk factor, loss limits, analysis of stress test results, or gamma and vega limits for option
instruments.
The global crisis triggered by COVID-19 together with the war in Ukraine and related uncertainties in the financial
instruments market forced a reduction in open market risk positions. However, these occurrences have not adversely
affected the realization of the budgeted target.
Interest rate risk in the trading book is the risk of adverse changes in the Bank’s financial result or equity, driven by any of
the following factors:
differences in the repricing dates of the Bank’s assets and the liabilities used for purposes of their financing (mismatch
risk),
difference in reference rates used for purposes of determining the interest rate for items with the same repricing dates
(basis risk),
changes in market interest rates which affect the fair value of the Bank’s open positions (interest rate volatility risk).
The interest rate risk in the trading book is classified as material, while the economic capital allocated to this risk
represents less than 1% of the Bank's total economic capital.
Exposures to interest rate risk were the main source of risk in the trading book. The Bank assesses the level of this risk as
moderate. In addition to instruments of a linear risk nature, the Bank maintained a small open position in interest rate
options to ensure that Customer transactions could be serviced at more favourable pricing conditions.
The table below presents the level of interest rate risk in the trading book in terms of value at risk with a 99% confidence
level over a one-day time horizon, allowing the Bank's result to be estimated in terms of its sensitivity to changes in
market interest rates, including in particular potential losses.
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Table 94. The level of interest rate risk in the trading book in terms of value at risk with a 99% confidence level over a
one-day time horizon.
IR VaR (in thousand PLN)
2022
2021
Average
1,752
1,266
Maximum
5,954
3,065
Minimum
668
556
Currency risk is the risk of adverse changes in the Bank’s financial result, driven by changes in market foreign exchange
rates.
The Bank engages in activities resulting in the creation of foreign currency positions sensitive to exchange rate fluctuations.
At the same time, it strives to limit its exposure to foreign currency risk related to offering its Customers products in foreign
currencies. The Bank undertakes limited activity on the foreign exchange market in order to generate financial results from
short-term arbitrage positions. In addition to instruments of a linear risk nature, the Bank maintained a small open position
in foreign exchange options to ensure that Customer transactions could be serviced at more favourable pricing conditions.
Currency risk has been classified as material, while the economic capital allocated to this type of risk represents less than
1% of the Bank's total economic capital.
The table below presents the level of currency risk in terms of value at risk with a 99% confidence level over a one-day
time horizon, allowing the Bank to estimate the sensitivity of the Bank's result to changes in market interest rates,
including in particular potential losses.
Table 95. The level of currency risk in terms of value at risk with a 99% confidence level over a one-day time horizon
FX VaR (in thousand PLN)
2022
2021
Average
596
354
Maximum
2,739
1,725
Minimum
58
71
Interest rate risk in the banking portfolio
The Group's core business activities - lending and taking deposits from Customers - result in open interest rate risk
positions that are transferred from business lines to portfolios managed by the Asset and Liability Management Division by
means of a transfer pricing system.
The structural elements (the stable, not sensitive to interest rate, part of the current accounts and capital) are hedged with
longer maturity transactions. On the remaining portfolio, the Group's intention is to close interest rate risk.
When determining the interest rate risk profile, the Group takes into account not only contractual parameters, but also the
actual characteristics of the products resulting from Customer behaviour and built-in options, applying models e.g. for
current accounts, savings accounts, fixed rate loans, credit cards.
Modelling the behaviour of products divided into business lines allows to select their stable and unstable part, reacting in
different ways to changes in interest rates.
The following basic types of interest rate risk analyses (for the overall portfolio and divided by currencies) are defined in
the policy on interest rate risk adopted by the Group:
a mismatch between the repricing dates of assets and liabilities ("gapping"), for the banking book,
sensitivity of interest income to defined – expected and stressed – scenarios for shifting interest rate curves, assuming
various interest rate curve scenario (EaR),
the amount of interest income under defined scenarios for the change of interest rate curves (NII),
sensitivity due to different reference rates (basic risk),
average investment horizon of capital and non-interest bearing current accounts (structural elements),
sensitivity of fair value to a parallel shift of interest rate curves by 1 basis point, and to a shift of interest rate curves by 1
basis point at a selected nodal point of the curve,
sensitivity of fair value measured as the nominal value of the annual transaction (item) with identical sensitivity (OYE),
change in fair value of capital with defined scenarios for changing interest rate curves.
The aforementioned analyses are the essential component of the system used for mitigating the interest rate risk in the
banking book. The analyses are performed for the relevant portfolios on a daily, monthly or quarterly basis. Additionally,
the Bank conducts sensitivity analyses for its banking book, where the changes in interest rates are more considerable than
those typically observed (stress tests).
The table below presents the interest rate gap for the banking portfolio as at 31 December 2022. The gap presents the net
amounts of revalued items by product in each time interval. Utilisation of set limits is below the maximum values.
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Table 96. Interest rate gap
In thousand PLN
to 1 month
1-3 months
3-12 months
1-5 years
over 5 years
total
Cash and balances at the Central
Bank
2,718,242
-
-
-
-
2,718,242
Amounts due from banks
11,572,083
60,000
77,500
-
-
11,709,583
Loans to Customers
31,736,714
29,231,501
17,966,783
9,755,175
1 313,848
90,004,021
Securities:
10,046,000
190,700
3,105,909
13,322,460
13,722,315
40,387,384
Other assets
1,871,428
209,155
232,439
1,286,825
592,228
4,192,076
Total assets
57,944,467
29,691,357
21,382,631
24,364,460
15,628,390
149,011,305
Amounts due to banks
(7,358,940)
(3,862,460)
(530,541)
(311,334)
(13,920)
(12,077,196)
Amounts due to Customers
(47,627,284)
(13,265,387)
(23,941,192)
(22,274,193)
(11,854,695)
(118,962,751)
Other borrowed funds
(307,534)
(76,883)
-
-
-
(384,417)
Capital
748,669
(288,288)
(1,297,295)
(6,918,907)
(3,459,453)
(11,215,274)
Other liabilities
(6,008,401)
(107,127)
(3,890)
(10,195)
(630)
(6,130,244)
Total liabilities:
(60,553,490)
(17,600,145)
(25,772,919)
(29,514,629)
(15,328,699)
(148,769,882)
Off-balance sheet net liabilities
(3,294,687)
(6,851,631)
1,197,001
5,138,881
3,807,269
(3,167)
Interest rate gap
(5,903,710)
5,239,580
(3,193,287)
(11,288)
4,106,961
238,256
The average length of capital investment and non-interest bearing current accounts as at 31 December 2022 was 4.1 years.
The sensitivity of interest income when interest rate curves shift as at 31 December 2022 largely depends on changes in
the balance sheet structure and the impact of subsequent increases on product interest rates.
Table 97 presents sensitivity of interest income as at 31.12.2022 with immediate shift of interest rates in all currencies by
100 basis points, assuming shifts between non-interest-bearing current accounts and interest-bearing deposits resulting
from high levels of interest rates in PLN. A significant factor that increases the sensitivity of interest income is the
assumption of hedging/investment (in terms of interest rate risk) of a portion of non-interest-bearing current accounts with
short-term (O/N/1M) interest rates. This assumption is based on the continuing uncertainty about the behaviour of these
Customer funds in a high interest rate environment.
Table 97. Sensitivity of interest income as at 31.12.2022
Shift in interest rate (in PLN million)
+100 p.b.
-100 p.b.
PLN
155
(88)
All currencies - total
261
(194)
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The supervisory test of the Group's equity economic sensitivity (change in the fair value of the Group's assets and liabilities,
excluding own funds, under the assumed changes in interest rate curves) is presented in the table below in terms of
amounts and percentages:
Table 98. Supervisory test of the Group’s equity economic sensitivity
Scenario
PLN million
% of own funds
+200 bps
(412)
(2.77%)
-200 bps
(381)
(2.56%)
The economic sensitivity of capital is at a low level at the end of December 2022.
As at 31 December 2022, the Group applies hedge accounting:
macro fair value hedge - the hedged risk is interest rate risk, and in particular changes in the fair value of fixed-rate
liabilities caused by changes in a specified reference rate. The hedged items are current accounts with fixed interest rates
in PLN, EUR and USD. The hedging instruments are plain vanilla interest rate swaps (IRS) in PLN, EUR and USD under
which the Bank receives a fixed interest rate and pays a variable rate based on WIBOR 6M, WIBOR 3M, EURIBOR 6M,
EURIBOR 3M, EURIBOR 1M, USD LIBOR 6M, USD LIBOR 3M, USD SFROIS.
macro fair value hedge - the hedged risk is interest rate risk, and in particular changes in the fair value of fixed-rate
receivables due to changes in market rates. The hedged item is a portfolio of fixed rate loans in PLN currency. The
hedging instruments are plain vanilla interest rate swaps (IRS) in PLN, under which the Bank pays a fixed interest rate
and receives a variable rate based on WIBOR 6M
cash-flow hedge – the hedged risk is interest rate risk and, in particular, changes in the cash flows of the hedged item
resulting from changes in a specified reference rate. The hedged items are: WZ1131 floating coupon bonds. The hedging
instruments are plain vanilla interest rate swaps (IRS) in PLN, under which the Bank receives a fixed interest rate and
pays a variable rate based on WIBOR 6M.
Given the significant flows between non-interest current accounts and savings accounts and term deposits, as well as high
production of temporarily fixed-rate mortgages in the first half of 2022, some of the macro fair value hedge were
terminated to maintain the assumed level of interest rate risk.
The war in Ukraine has generally not affected the management of interest rate risk in the banking portfolio.
Liquidity risk
Liquidity risk is defined as the risk of the Bank losing the ability to meet its financial obligations, where liquidity is defined
as the ability to:
finance assets and meet the Bank’s obligations on a timely basis in the course of its daily operations or in other
conditions, without the necessity to incur loss, whereas, as maintenance of liquidity is the Bank’s top priority -
optimization of liquidity costs is considered in the last place,
obtaining alternative and supplementary funding to those held at present if they are withdrawn early and/or not
renewed, so as to meet the current or potential demand for funds from the current depositors, to cover lending and other
potential liabilities related to, inter alia, the settlement of derivative transactions or collateral established by the Bank
generate a positive balance of cash flows over a specified time horizon, regardless of macroeconomic developments,
achievement of business plans and changes in the regulatory environment.
The Bank operates in a free-market environment and is a financial markets participant, specifically in the retail, corporate
and interbank markets, which offers a wide range of opportunities to control the liquidity level, but, at the same time,
makes the Bank sensitive to crises in each of these environments. There is an automated risk monitoring system in the
Bank which enables the Bank to obtain information on the current level of future liquidity risk on a daily basis and online
information on the level of the intraday liquidity risk.
The following types of liquidity are distinguished by the Bank:
immediate liquidity (intraday) – during the present day,
future liquidity – beyond the present day, additionally divided into:
- current liquidity – within 7 days,
- short-term liquidity – more than 7 days to 1 month,
- medium- and long-term liquidity – over 1 month.
The Bank defines liquidity risk as the risk of losing its ability to:
meet its payment obligations on a timely basis,
obtain alternative and supplementary funding to those currently held,
generating a positive balance of cash flows within a defined time horizon.
The Bank’s policy on liquidity risk management focuses on:
sustainable, organic growth of the balance sheet (an increase in the value of assets has to be linked with a corresponding
rise in the level of financing with the use of stable equity and liabilities) as well as off-balance sheet transactions and
liabilities;
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limitation of the Bank’s dependence on changes in external conditions and ensuring that in a local or global crisis or a
crisis directly affecting the Bank, the Bank will be able to quickly meet its obligations without reducing the range of its
services or initiating changes in its core business profile. In the event of a crisis situation occurring in the longer term, the
Bank’s policy focuses on maintenance of liquidity with possible changes in growth directions and introduction of costly
business profile change processes;
active limitation of the probability of adverse events which may affect the Bank’s liquidity. In particular, this concerns
events which may affect reputation risk. In such case, the Bank will undertake actions aimed at restoring confidence of
both Customers and financial institutions as soon as possible;
ensuring high quality of liquidity management standards. Actions aimed at improving the quality of liquidity management
at the Bank are its top priority.
Customers’ deposits supplemented by medium- and long-term lines of credit and equity are the major sources of funding
used by the Bank. Medium- and long-term lines of credit, including subordinated loans and the funds obtained in the
process of loan portfolio securitization, are provided mainly by the BNP Paribas Group, but also by the European Bank for
Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the Council of Europe Development Bank
(CEB) Bank and other financial institutions. The policy adopted by the Bank allows the use of other funding sources, such as:
issuing own debt securities or entering into structured transactions.
At the end of December 2022, the Bank financed a portfolio of mortgage loans in CHF with funds in EUR and USD by
concluding medium- and long-term FX swap transactions.
Loan financing structure
The Group limits the risk of financing, which is associated with the risk of having insufficient stable sources of financing in
the medium- and long-term and with the necessity to incur an unacceptable level of losses.
The Bank’s loans are financed mainly with the use of Customers’ current and term deposits with the intention to maintain a
stable relationship between these items and the funds deposited in the accounts of non-banking institutions, which is
presented in the table below:
Table 99. Structure of Group’s loan portfolio financing
In PLN million
31.12.2022
Net loans
89,639
Total sources of funding
132,946
Customer deposits, including:
120,429
- retail Customers
49,020
- corporate
65,922
- non-banking financial institutions
2,904
In PLN million
31.12.2022
- public sector institutions
2,582
Liabilities to banks
12,517
Debt securities issued
-
As at the end of December 2022, compared to December 2021, the amount of wholesale funding received from the BNP
Paribas Group remained at the same level. The Bank has obtained new financing in the amount of PLN 450 million from the
EBRD under MREL to be used for green investments. The Bank finances its foreign currency loans with deposits accepted
from Customers using, if necessary, foreign exchange transactions. In case of a necessity, the Bank may use funds from
medium and long-term loans from the BNP Paribas Group, which provides stable financing to cover currency shortages in
EUR, USD or CHF.
As at 31 December 2022, the structure of open long-term lines of credit in Group BNP Polska was as follows:
Table 100. Structure of loans from the BNP Paribas Group
in PLN million
31.12.2022
CHF
150
EUR
583
PLN
6,259
Table 101. Structure of loans from the EBRD, EIB and CEB
in PLN million
31.12.2022
PLN
877
EUR
82
The net liquidity coverage ratio (LCR) for the Group amounted to 169.8% at the end of December 2022, an increase of 24.1
p.p. compared to the end of 2021. (145,7%). The increase in the LCR measure is mainly due to an increase in Customer
deposits with a decrease in loans.
The Net Stable Funding Ratio (NSFR) for the Bank at the end of December 2022 reached 131.7% and for the Group - 130.5%,
a decrease from the end of 2021 by 1.6 p.p. and 0.7 p.p., respectively. The minor decrease is a result of a change in
structure of funds from Customers changes after the interest rate increases - more liabilities are accumulated in the form
of time deposits, instead of deposits in current and savings accounts. Fluctuations in the ratio in 2022 were not significant
and the ratio gradually decreases to the current level.
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In addition, in the process of securitisation of the loan portfolio in 2017, the Bank received financing, the value of which is
amortised over time and at the end of December 2022 it amounted to PLN 384.4 million.
The outbreak of the war in Ukraine did not affect the Bank's overall liquidity situation and was reflected only during the
first month of the conflict in increased demand for cash, both at branches and ATMs, not only of the Bank, but of the entire
Euronet network. The significant increase in NBP interest rates during the year was reflected in lower sales of loans to
individual Customers, especially in the area of mortgages. Inflationary concerns, wage pressures, as well as significant
increases in energy prices are also slowing loan production in the corporate segment.
Operational risk
The Bank defines operational risk in accordance with the requirements of the Polish Financial Supervision Authority
included in Recommendation M as the possibility of incurring a loss through the fault of inappropriate or unreliable
internal processes, people, technical systems or as a result of external factors. It incorporates legal risk, but does not
include strategic risk. The Bank also recognizes as operational risk events and losses the consequences of materialization of
compliance risk. Operational risk is inherent in any type of banking operations. The Bank identifies operational risk as
permanently significant.
Objectives of operational risk management
The Bank’s operational risk management objectives include, in particular, compliance with high operational risk
management standards that guarantee security of Customer deposits, the Bank’s equity, stability of its financial result as
well as maintenance of the operational risk level within the range of the operational risk appetite and tolerance defined by
the Bank. The main measure used to measure risk within the adopted appetite for operational risk is the ratio of operational
losses recorded by the Bank over the adopted time period. While developing the operational risk management system, the
Bank complies with the applicable legal requirements, in particular the recommendations and resolutions of the national
financial supervision authorities and the standards adopted by the BNP Paribas Group.
Operational risk management strategy and policy
The operational risk management strategy is described in the “Operational risk management and internal control strategy
of BNP Paribas Bank Polska S.A.”, approved by the Management Board of the Bank and accepted by the Supervisory Board.
The strategy is reviewed at least once a year, and the Management Board reports the results of the review to the
Supervisory Board. Changes to the Strategy require the approval of the Supervisory Board, which assesses the
implementation of the Strategy and compliance with it at least once a year.
The priority of the strategy is to ensure that the Bank achieves its business objectives in a safe manner, accepting the level
of risk only within the accepted risk appetite, eliminating unacceptable events, reducing the possibility of unexpected
events with severe consequences for the Bank, and proactively responding and reacting to identified events that may cause
such consequences. Achieving the above priority also includes supporting an appropriate operational risk management
culture within the Bank. The goals of the strategy, which the Bank achieved in 2022 covered the implementation of
measures to reduce the risk of fraud, including phishing, as well as the mitigation of the materialization of other risks and
the optimization of the internal control environment.
The Management Board of the Bank regularly receives information concerning the scale and types of operational risk to
which the Bank is exposed, its effects and management methods. In particular, both the Bank's Management Board and the
Supervisory Board are regularly provided with information about the development of the operational risk appetite measures
specified in the Operational Risk Management Strategy.
The operational risk management strategy also covers the Bank's subsidiaries. In accordance with supervisory regulations,
the Bank has oversight of operational risks related to the activities of its subsidiaries. Operational risk management in
subsidiaries is carried out within dedicated units/persons appointed for this purpose. The manner and methods of
operational risk management in subsidiaries are organized adequately to the scope of the entity's activities and its business
profile, in accordance with the Bank's rules.
The organizational framework and standards for operational risk management are defined by the “The Operational Risk
Policy of BNP Paribas Bank Polska S.A.”, adopted by the Bank's Risk Management Committee. In accordance with the “The
Operational Risk Policy of BNP Paribas Bank Polska S.A.”, the Bank’s operational risk management processes include:
the identification and assessment of operational risks through the collection of information on operational events, the
assessment of risks in processes and products, and determination of key risk indicators,
setting the operational risk appetite and limits at the level of the entire Bank and individual business areas, the
operational risk analysis and its monitoring and ongoing control,
counteracting increased levels of the operational risk, including risk transfer.
Organization of operational risk management
The Bank maintains and develops an operational risk management system that comprehensively integrates the
management of individual types of operational risk in all areas of the Bank's operations. The objective of the operational
risk management system is to ensure the safety of the Bank's operations by implementing effective mechanisms for
identification, assessment and quantification, monitoring, control, reporting and taking actions aimed at reducing
operational risk. Such measures take into account the structures, processes, resources and scopes of responsibilities for the
aforementioned processes at various organisational levels at the Bank.
The Bank precisely defines the roles and responsibilities in the operational risk management process, considering its
organisational structure. The operational risk management process is implemented through three lines of defense. The first
line of defense consists of risk management in the operational activities of the Bank. The second line of defense includes, in
particular, risk management by employees of specially appointed organisational units, independent of the risk management
of the first line of defense, and the activities of the compliance function. The third line of defense involves the activities of
the internal audit department.
As part of the second line of defense, comprehensive supervision of the organization of operational risk management
standards and methods is exercised by the Operational Risk, Internal Control and Anti-Fraud Division operating within the
Risk area. The Division's responsibilities include operational risk management issues, protecting Bank from fraud, and
supervision of internal control, including control of personal data protection processes.
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The definition and implementation of the Bank's insurance strategy, as a method of risk mitigation, is the responsibility of
the Real Estate and Administration Department. On the other hand, business continuity management, including issues
related to business continuity plans to ensure continuous and uninterrupted operation of the Bank and contingency plans to
ensure the Bank's ability to conduct its day-to-day operations, is the responsibility of the Security and Business Continuity
Management Division.
As part of the legal risk management process, the Legal Division monitors, identifies and performs analyses of changes to
universally binding law and their effect on the Bank’s operations, in addition to court and administrative proceedings which
affect the Bank. The Compliance Department is responsible for day-to-day compliance risk analysis as well as development
of appropriate risk control techniques and their improvement.
Other important areas of operational risk management include:
human resources management (HR risk),
outsourcing risk,
model risk management,
IT systems risk management (ICT risk),
management of conduct risk,
for which risk management policies and procedures, are defined - in accordance with the scope of competence - by
designated organizational units of the Bank.
The Bank periodically monitors the efficiency of the implemented operational risk management system and its
appropriateness for its current risk profile. The organisation of the operational risk management system is reviewed as part
of periodic control exercised by the Internal Audit Division, which is not directly involved in the operational risk
management process but provides professional and independent opinions supporting achievement of the Bank’s objectives.
The Supervisory Board oversees the control of the operational risk management system and assesses its adequacy and
effectiveness.
Risk identification and assessment tools
The Bank places a strong focus on identification and assessment of the factors that trigger its present exposure to
operational risk in relation to banking products. It is the Bank’s objective to reduce the operational risk level through
improvement of its internal processes as well as mitigating the risk inherent in the process of launching new products and
services and outsourcing operations to third parties.
In accordance with the “The Operational Risk Policy of BNP Paribas Bank Polska S.A.”, operational risk analysis is aimed at
acquiring an understanding of the interdependence between the risk generating factors and operational event types, and it
is performed primarily with the objective to define the operational risk profile.
The Bank manages operational risk using the following tools, among others:
TOOLS USED
THE MAIN PURPOSE OF THE TOOL
RECORD OF OPERATIONAL
RISK EVENTS
Effectively analysing and monitoring operational risks
Responding to disclosed operational risk vulnerabilities
OPERATIONAL RISK AND
CONTROL SELF-
ASSESSMENT (RCSA)
Building operational risk awareness
Identification of operational risks, identification of threats and identification of their sources,
as well as determination of the size and potential consequences of threats
Evaluation of control mechanisms and mitigation of identified risk
Improvement of processes and reducing identified operational risks
Ensuring adequate risk control in processes exposed to operational risk
SCENARIO ANALYSIS OF
OPERATIONAL RISK (SA)
Identification of events characterized by low frequency but high severity
Assessing the impact of possible extreme events on the Bank's operations by estimating the
probability of occurrence and anticipated severity of the scenarios considered
Raising awareness of the Bank by providing information on possible operational risk scenarios
Support the development of action plans for identified risks
KEY RISK INDICATORS
(KRI)
Ongoing monitoring and reporting of operational risk exposures
Providing warning signals on the operation and operational risk exposure of the Bank's
processes and business areas
Monitoring changes in risk levels
RISK ASSESSMENT OF
IMPLEMENTED PROJECTS
Identification and assessment of operational risks associated with the Bank's ongoing projects,
including: products being implemented or modified
Independent verification and check by the second line of defense of the correctness of risk
identification and mitigation by the first line of defense units
Recommendation of risk mitigation measures
IDENTIFICATION OF
OPERATIONAL RISKS FOR
CONTRACTS WITH
EXTERNAL SUPPLIERS
(OUTSOURCING)
Ensuring proper identification and assessment, control and monitoring and mitigation of
operational risks
Ensuring that regulatory requirements for the Bank's outsourcing process are met
OPERATIONAL RISK
REPORTING
Providing current and periodic operational risk information adapted to management purposes.
Providing current and periodic operational risk information adapted to management purposes:
to the Bank's Management Board, Committees responsible for risk management, the
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TOOLS USED
THE MAIN PURPOSE OF THE TOOL
Supervisory Board and other members of the Bank's management, according to their
responsibilities
Enabling assessment of the Bank's exposure to operational risk and evaluation of the
effectiveness of operational risk management
Disclosure of operational risk information in accordance with Directive 2013/36/EU of the
European Parliament and of the Council of 26 June 2013 on the conditions for the
authorisation and prudential supervision of credit institutions and investment firms, amending
Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC, as amended. (CRD
IV Directive) and the standards required by the institutions supervising the Bank's activities.
The operational risk profile constitutes the assessment of materiality of the risk, which is understood as the scale and
structure of the operational risk exposure, defining the degree of exposure to the operational risk (operational losses),
within the structural dimensions selected by the Bank and the defined scale. Periodic assessment and review of the Bank's
operational risk profile is based on an analysis of the Bank's current risk parameters, changes and risks occurring in the
Bank's environment, implementation of the business strategy, as well as the adequacy of the organisational structure and
the effectiveness of the risk management and internal control system.
In accordance with the applicable regulations, the Bank determines regulatory capital to cover the operational risk. The
Bank uses the standardised approach (STA) for calculation of the capital requirement. Subsidiaries of the Bank, on a
consolidated basis, determine the capital requirements according to the basic indicator approach (BIA).
Control and monitoring of operational risk
The purpose of internal control is effective risk control, including risk prevention or early detection. The role of the internal
control system is to achieve general and specific objectives of the internal control system, which should be considered at
the design stage of control mechanisms. The principles of the internal control system are described in the "Policy on
internal control at BNP Paribas Bank Polska S.A.", approved by the Bank's Management Board. This document describes the
main principles, organisational framework and standards for the functioning of the control environment in the Bank,
complying with the PFSA’s requirements provided in Recommendation H. Detailed internal regulations concerning specific
areas of the Bank's activity are adapted to the specifics of the Bank's operations. The appropriate organisational units of the
Bank, in accordance with the scope of the tasks assigned to them, are responsible for developing detailed regulations
relating to the area of internal control.
The internal control system in the Bank is based on the 3 lines of defense model.
The Bank ensures the exercise of internal control through independent monitoring of compliance with controls, including
ongoing verification and testing.
Operational risk mitigation
In 2022 the Bank applied and maintained a number of measures to mitigate operational risk, strengthening control
mechanisms and processes over this type of risk. In particular, processes and tools for preventing and combating fraud
against the Bank were strengthened, including, among others, combating credit fraud and phishing. In addition, a program
to mitigate fraud risk was implemented at the Bank. The Bank monitored its exposure to legal risk on an ongoing basis,
including risks arising from pending litigation concerning CHF-denominated loans, in order to respond adequately to
changes in the level of risk. With reference to the outbreak of war in Ukraine, the Bank monitored potential risks to the
Bank on an ongoing basis, including those relating to security and ensuring business continuity.
The Bank's Management Board and the Risk Committee of the Supervisory Board are informed periodically, in particular
about the effectiveness of the solutions implemented by the Bank.
Risks resulting from the impact of the pandemic
In terms of operational risk management, the Bank monitors the risks associated with the existing COVID-19 epidemic
emergency, being prepared to take appropriate preventive measures for ensuring the safety of both the Bank's employees
and Customers, as well as ensuring the uninterrupted implementation of processes related to its operations.
Risks resulting from the war in Ukraine
In terms of operational risk management, the Bank continuously analyses the risks associated with the consequences of
military actions in Ukraine (including, in particular, cyber or physical attacks targeting payment or banking infrastructure
that may result in disruptions to business continuity), and takes appropriate measures to ensure the security of both the
Bank's employees and Customers and to ensure the uninterrupted execution of processes related to its operations.
Compliance risk
The Bank defines compliance risk as the risk of negative consequences, including legal and regulatory sanctions, financial
penalties and loss of reputation, due to the Bank's failure to comply with laws, regulatory standards and recommendations,
ethical and market standards as well as internal regulations applicable to the Bank.
Compliance assurance system
The compliance assurance system consists of organizational arrangements, processes and control mechanisms aimed at
ensuring the Bank's compliance with laws, internal regulations and market standards. The system operates as part of the
internal control system and is implemented along three lines of defense:
the first line of defense includes all organizational units responsible for the operational functioning of the Bank. These
units are required to comply with internal regulations, apply the control mechanisms and compliance risk control
mechanisms established at the Bank, as well as to ensure independent horizontal monitoring of compliance with control
mechanisms aimed at ensuring compliance,
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the second line of defense consists of compliance risk management by independent organizational units set up for this
purpose - the Compliance Monitoring Division responsible for the implementation of the compliance risk management
process and other organizational units of the Bank responsible for ensuring compliance in their areas of competence (e.g.
risk monitoring units, legal unit),
the third line of defense involves the activities of internal audit, which is responsible for testing the adequacy and
effectiveness of the internal control system.
The Compliance Monitoring Division assists, with respect to compliance risk, the Management Board in introducing and
ensuring the operation of an adequate and effective internal control system and the Supervisory Board in supervising its
implementation.
The role of the compliance function
In the Bank, as part of the second line of defense of the internal control system, there is a separate, independent
compliance unit - the Compliance Monitoring Division. The activities of this unit are aimed at implementing the process of
compliance risk management, i.e. introducing solutions to identify, assess, control and monitor this risk. This unit is also
responsible for submitting reports in this regard to the Bank's Management Board and the Supervisory Board.
As part of the compliance assurance system, the activities of the Compliance Monitoring Division also include: designing
and implementing internal regulations, advising, conducting investigations, creating compliance risk control mechanisms,
current vertical verifications and vertical and horizontal testing of the effectiveness of control mechanisms to ensure
compliance of the Bank's operations with laws, internal regulations and market standards, including their compliance with
the first line of defense of the Bank's internal control system, with particular attention to the following areas:
anti-money laundering and counter-terrorist financing,
compliance with embargoes and international sanctions,
protection of Customer interests,
professional ethics and anti-corruption,
performance on financial markets,
preventing market manipulation and insider trading
management of conflicts of interest
compliance by the Bank and its Clients with regulations on tax avoidance and those relating to financial markets, with a
transnational scope.
Appropriate mechanisms have been introduces at the Bank to ensure the independence of the Compliance Monitoring
Division and to provide it with a possibility to perform its assigned functions. As part of the Bank's organizational structure,
the Managing Director of the Compliance Monitoring Division reports directly to the President of the Management Board,
and the rules and regulations of the Compliance Monitoring Division and the necessary mechanisms to ensure its
independence are approved by the Supervisory Board. In addition, the Bank has a dedicated procedure for the appointment
and dismissal of the head of the Compliance Monitoring Division, and the necessary mechanisms are in place to protect the
employees of the Compliance Monitoring Division from unjustified termination of their employment contracts.
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ESG risk management
ESG risk management policies and procedures
At the Bank, we defined the concept of materiality of risks and the factors determining them. To check whether the risks
identified by the Bank are material, we implement a materiality assessment process common to all risks. The result of the
analyses is a list of material risks. From 2020 ESG risks are recognised as material - so it became necessary to include the
impact of environmental, social policy and corporate governance factors in the traditional risk management model. ESG
risks are included in the Risk Management Strategy and Risk Appetite. The ESG Risk Management Principles and the
principles for measuring ESG risk in the Bank's Internal Capital Assessment Process (ICAAP) have also been developed.
BNP Paribas Bank Polska S.A.'s capital plan for 2022-2025 was supplemented with limits for ESG risk determined based on
the risk measurement performed.
In analysing ESG risks, we consider factors that may have a - positive or negative - impact on the financial performance,
the solvency of Clients or the value of the business. In accordance with the principle of double materiality, we also analyse
the effect of the Client's activities on ESG factors.
Factors considered in the ESG risk analysis:
Environmental factors:
greenhouse gas emissions,
energy consumption and efficiency,
water, air and soil pollution,
efficient management of water usage (risk of freshwater scarcity),
soil degradation,
deforestation,
natural resource consumption,
waste management,
biodiversity and ecosystem protection,
risk of no energy transition,
developing low-carbon and other environmental technologies (transition risk)),
regulatory constraints, including additional taxes and charges e.g. carbon tax (transition risk),
physical risks associated with climate change (extreme weather events and gradually worsening climatic conditions),
including the effects of natural disasters, which may affect, e.g., the value of assets,
changes in consumer sentiment and preferences related to increasing awareness of environmental risks,
risk of financial liability for the negative impact of operations (compensation, fines).
Social factors:
integration of various social groups,
promoting social cohesion,
respect for diversity,
whistle-blower protection,
investments in human capital and communities,
anti-discrimination on all bases,
tackling inequalities and promoting equality of opportunity,
safe and healthy working environment,
health and safety of Customers, local communities, surroundings,
Customer privacy protection,
training and development,
non-respect of human rights (forced labour, child labour, modern slavery),
non-respect of workers' rights: right to organise, right to strike, right to collective bargaining, ethical standards of
employment,
risk of lack of threat prevention against terrorism and cybercrime,
contagious diseases (affecting humans or animals),
risk of financial liability for the negative impact of the business (compensations, fines).
Corporate governance factors:
unethical and fraudulent business practices,
non-compliance with corporate governance standards (code of ethics, grievance and whistleblowing mechanisms,
transparency of information),
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gender diversity in corporate bodies,
internal audit,
independence of the board,
executive remuneration,
fraud and corrupt practices,
shareholders' rights,
stakeholder engagement,
deficient ESG risk control systems,
requirements in the supply chain,
compliance with non-financial sector regulations,
risk of financial liability for the negative impact of the business (compensations, fines).
At the Bank we recognise as important the regulatory risk as well, i.e. changes in the law related to the areas covered by
the ESG strategy. In order to properly manage and control this risk, we monitor the work of supervisory authorities and
legislative proposals concerning the financial sector. We recognise that changes in the ESG area will have a real impact on
the operation of our organization.
ESG analysis in the credit process
All credit process participants on the Bank's side assess ESG risks, including the CIB and Corporate Client Risk Division as a
second line of ESG risk control. The process has been systematised and made more detailed through the implementation
of the EBA/GL/2020/06 Guidelines on loan origination and monitoring.
Since 30 June 2021, for all new financing and additional increases in financing, ESG risk assessment has been included in
the credit risk assessment process for Corporate Clients and SMEs.
Since 1 September 2021, ESG risk assessment has also been included for Micro Clients. The ESG assessment carried out
on the basis of information obtained from Clients is taken into account in the credit analysis. If a high level of ESG risk is
identified, it is possible to downgrade the Client's rating.
In 2022 Bank conducted 29,553 ESG risk assessments in the credit processes.
The BNP Paribas Group applies the Equator Principles (EP) to identify, assess and manage the risks associated with
financing a project and its environmental and social impacts. The principles provide minimum standards for conducting
due diligence on projects.
At the Bank, we also comply with the BNP Paribas Group policies:
Policy on Ocean Protection, which establishes funding criteria for activities deemed risky to the environment and ocean
biodiversity.
The Human Rights Policy, which sets out the BNP Paribas Group's ethical standards and ensures respect for human
rights in all its activities.
ESG criteria in the Client’s assessment
[2-23] [3-3] [Reducing carbon footprint of the loan portfolio] [3-3] [Monitoring and management of ESG risks:
environmental, social and corporate governance risks in the Bank's and Clients' operations]
BNP Paribas Group policies identify nine sectors that are highly sensitive in terms of ESG risks. These sectors are: coal-
based power generation, mining, fuel in unconventional oil and gas resources, nuclear, forestry - wood pulp, forestry -
palm oil, tobacco, agri-food, defence and safety.
In 2022, Bank conducted 207 CSR analyses in sectors that are highly sensitive in terms of sustainability.
All entities operating in these sectors that seek to become our Clients or obtain financing are required to comply with the
requirements described in our sector policies and CSR principles. At the same time, Bank has taken the strategic decision
to end its service to the most harmful sectors in terms of sustainability.
since 2018
we are in the process of executing
an exit from tobacco financing. No
new Clients from this sector will
receive financing from the Bank
since 2020
Bank has discontinued its financing
of the fur farming sector.
in 2020
The Group has strengthened its
policy towards Clients whose
operations involve energy coal
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 166
BNP Paribas Group sector policies
Coal-based power generation
sector
The Bank will not commence working with any new Client that generates more
than 25% of its revenue from coal-based power generation and coal-based
activities.
The Bank will only engage with coal-based power companies that have a coal
exit strategy by 2030 for both coal-based power plants owned and operated by
the company.
The Bank will not provide financial products or services to new coal-based power
projects, regardless of their location, or to retrofit existing Coal-based Power
Plants/Electricity Plants to extend their useful life or increase their capacity.
Mining sector
The Bank will not provide any financial products or services to infrastructure
companies significantly involved in the energy coal industry.
The Bank will not provide any financial products or services to entities that are
part of mining groups that produce more than 10 million tonnes of energy coal
per year or generate more than 20% of their revenue from energy coal.
Bank will not provide any financial products or services to companies involved in
energy coal mining.
Fuel in unconventional oil and
gas resources sector
Bank will not be offering financial products and services to companies involved
in unconventional oil and gas resources.
The Bank will not finance exploratory and production projects for unconventional
oil and gas resources.
The Bank will not finance entities that engage in activities related to
unconventional oil and gas resources - i.e. trading, transporting or transmitting
those resources.
Nuclear sector
The Bank, as a financial institution, can offer its products and financial services
to government entities supporting companies developing non-military nuclear
energy. Bank believes that it is essential for countries planning to develop
nuclear power or new power plants, as well as for the international community,
not only to act in accordance with the requirements of safety, population
protection, but also to protect the environment for future generations.
Through the implementation of its CSR Policy, Bank would seek to ensure that
the projects it might finance comply with the principles of monitoring as well as
mitigating the social and environmental impacts of the nuclear energy sector.
Forestry – wood pulp
The Bank noted that due to the wood pulp production process, heavy industry
activity has a major impact on the environment, polluting water, land and air,
but also on the health and safety of pulp mill workers and surrounding
communities.
Bank wants to support responsible producers with sustainable development
practices in the wood pulp sector.
Forestry – palm oil
Bank refrains from financing or investing in companies whose activities actively
contribute to deforestation or which violate the rights of local communities.
Bank seeks to support responsible producers with sustainable development
practices in the palm oil production sector.
Tobacco sector
Following the BNP Paribas Group's decision in 2017 to cease its financing and
investment activities in relation to tobacco producers and planters and
wholesalers whose main business is related to tobacco, the Bank is
implementing an exit process from financing this sector.
Introduction
About us
Environment
Strategy and
prospects
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execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 167
Agri-food sector
The Bank offers a wide range of financial products and services to the agri-food
sector along the entire value chain. Bank's partners are characterised by a high
level of responsibility, which is reflected in a commitment to provide people with
healthy and safe products in a way that does not endanger the food supply for
future generations. The sector policy reflects the Bank's commitment to
supporting sustainable development.
Since 2021, the Group operates with new criteria for companies involved in soy
and beef activities in the Brazilian Amazon and Cerrado. The Bank will only offer
financial products or services to companies that have adopted a zero-
deforestation strategy in their production and supply chains by no later than
2025.
In the specific case of Amazon, the Bank will not finance Clients producing or
buying beef and soya from areas grubbed up or converted after 2008, in the case
of Cerrado, in areas grubbed up or converted after 1 January 2020, according to
global standards.
For all Clients, the Bank will require full traceability of beef and soy supply
chains (direct and indirect) by 2025.
The Group invites Clients to commit to a transition to systems including cage-
free infrastructure for broilers and laying hens by 2025 and to implement the
FARMS Initiative's Responsible Minimum Standards by encouraging all chicken
breeding companies (broilers and laying hens) to adhere to a maximum stocking
density of 30 kg/m2.
Defence and safety sector
The Bank has included in the CSR Policy provisions on defence and security
equipment, which relate generally to weapons (including controversial weapons),
military equipment, dual-use goods, for internal repression, and for internal
security bodies and the police.
The Bank has committed itself to the application by all areas, units and
organisational units of a specific set of principles and guidelines, included in the
Defence and Security Sector Policy.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 168
Climate-related risks and opportunities
[3-3] [BNP Paribas Bank's strategic commitments and their implementation in
the field of climate change mitigation]
Managing climate risk is one of the main challenges facing the financial sector.
The Task Force on Climate-related Financial Disclosures (TCFD) set up by the
Financial Stability Board (FSB) published guidance in 2017 for companies
showing how they should report the environmental impact of their operations
and how they should understand the risks and opportunities associated with
climate change. The Bank discloses climate information in line with the TCFD
recommendations. The guidance is organised around four thematic areas:
governance, strategy, risk management and metrics and targets.
Methodologies for presenting indicators: The Bank assumes that the short-term
perspective is up to 1 year, the medium-term perspective is 1 - 5 years and the
long-term perspective is more than 5 years.
Governance
1.a. Overview of management's oversight of climate-related risks and
opportunities
A series of analyses are conducted at the Bank to mitigate climate-related risks,
based on the analysis of portfolio data. Besides the reports prepared for the
day-to-day purposes of the Bank's management, risk monitoring is carried out
through a formal system of limits and reports, implemented as part of the risk
management system. The ESG Risk Management Principles at BNP Paribas
Bank Polska S.A. set out the principles for monitoring and reporting risks,
including climate risk. At the same time, work is in progress on the calculation
of emissions in the Bank's portfolio of assets (scope 3, category 15), which will
allow a more complete assessment of the portfolio in terms of emissivity and
the adjustment of the business strategy in this area.
Information on the climate risk level within ESG risk, is reported on a quarterly
basis to the Risk Management Committee, the Bank's Management Board and
the Supervisory Board. The reporting of climate risk focuses on the presentation
of the results of the assessments given in the credit process, based on
information from ESG questionnaires. In addition, information is presented on
the results of the internal capital measurement for ESG risk compared to the
set limits in the capital plan. On a quarterly basis, information on the level of
risk appetite in the ESG area is also provided. The Bank's Management Board
determines, and the Supervisory Board approves, the level of ESG risk appetite,
as well as the principles for measuring ESG risk, including climate risk, in the
ICAAP process.
The appetite level set is subject to an annual review, the results of which are
discussed at a meeting of the Management Board and Supervisory Board.
In respect of strategic monitoring, the key targets included in the strategy
document are presented to the Board of Directors on a quarterly basis (and in a
broader annual form). Climate-related indicators are also incorporated,
including, inter alia, the level of CO
2
emissions or the value of sustainable
financing. In addition, each member of the Executive Board includes
sustainability and climate-related indicators in their annual targets. These
include, among others, a target that takes into account the level of sustainable
assets, which is a key element of the POSITIVE pillar in the Bank's GObeyond
Strategy 2022-2025.
1.b. Management's role in assessing and managing climate-related risks
and opportunities
In 2022, the Sustainability Area was established at the Bank, with the Chief
Sustainability Officer (CSO) as Executive Director. The CSO acts as the main
coordinator of sustainability issues within the organisation, leads the
Sustainability Council and reports on climate issues directly to the CEO, who
oversees the implementation of the strategic integration of climate aspects into
the organisation's operations.
The Sustainability Area includes the Energy Transformation Department, the
CSR and Sustainable Finance Department and the Sustainability Initiatives and
Reporting Team. Thus, there is a clear management structure in the Bank for
aspects of sustainability and, in particular, climate.
The Energy Transition Facilitation Department is responsible for, i.a.
cooperating (also in the field) with the Bank's Clients in the SME and MidCap
sectors by proposing financial solutions tailored to the challenges of
transforming the economy towards low- and zero-carbon, as well as working
on financial solutions aimed at other segments (e.g. a loan with a subsidy
under the “Clean Air” Programme).
The CSR and Sustainable Finance Department is responsible for the Bank's
ESG governance, educational activities, partnerships and cooperation with
Clients in the area of sustainable financial solutions such as Sustainability-
Linked Loan, ESG Rating-Linked Loan or Green Loan.
The Sustainability Strategy Implementation Support Team is responsible for
monitoring sustainability (and specifically climate change mitigation)
initiatives and financing in the Bank.
In parallel, the Sustainability Area works closely with other areas and units on
improving the Bank's sustainability offering and operations. Examples of
cooperation and responsibilities in other units of the Bank include, among
others: Risk and Reporting Processes Department (e.g. EU Taxonomy, EBA
guidelines, GHG Emissions in scope 3); Public Sector and Institutions Office
(cooperation with local authorities and local authorities subsidiaries on
sustainability), Procurement Department (environmental and social criteria in
supplier assessment) or business lines (e.g. training and cooperation with
Clients on implementing sustainable financial solutions).
Strategy
2.a. Description of the climate-related risks and opportunities that the
organisation has identified in the short, medium and long term
The Bank analyses the possible impact of trends related to climate change by
identifying opportunities and threats to its business and growth prospects. Due
to the nature of the business of financial institutions, most opportunities and
risks are indirect in nature, being strongly linked to Clients' successes and
challenges. Possible inadequacies in adapting to climate-related changes and
the consequent losses on the part of the Client may translate, among other
things, into the quality of the repayment of the financing provided. By contrast,
Client activity that takes into account new opportunities and minimises losses
allows banks to strengthen the quality of the portfolio and be the beneficiary of
a long-term relationship with the Client.
The direct opportunity is an emerging market niche in which banks can build
their position and success as institutions supporting the transition towards a
sustainable economy. This field is not limited to financing renewables. It is
entirely new business models, e.g. supporting low-carbon housing (through
Green Mortgages), energy efficiency or the circular economy. An example of
such activities is the long-term rental of electronic devices, with a pre-planned
overall (and extended) product life cycle. Further examples are financial
products linked to sustainability factors such as Sustainability-Linked Loan or
ESG Rating-Linked Loan. These solutions allow a partial link to be made
between the margin of the loan and the Client's progress in achieving (pre-
defined) sustainability goals. The solution thus creates an additional incentive
to take action in this area. In most cases, climate change mitigation is the most
important indirect or direct measured objective in these products.
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 169
Climate change risks affecting the Bank's business model, strategy and
financial plan can materialise through three main channels:
1. Physical risks associated with environmental degradation, e.g. air, water
and land pollution, deforestation (these events may lead to e.g.
infrastructure damage, crop damage, reduced productivity or indirectly lead
to consequences such as disruption of the supply chain), and climate
change, including the occurrence of:
a. extreme weather events e.g. storms, floods, fires, heat waves, which can
damage production facilities and disrupt supply chains,
b. long-term climate change, which may lead to, inter alia, increased
temperatures, changing rainfall patterns, rising sea levels, reduced water
availability, loss of biodiversity and changes in soil productivity.
2. Transition (transformation) risks arising from the need to adapt the
economy to gradual climate-related changes, in particular to the use of
low-carbon and more environmentally sustainable solutions. These risks
may materialise, i.a. through:
a. regulatory risk (changes in climate and environmental policies, e.g. as a
result of energy efficiency requirements, carbon pricing mechanisms that
increase the price of fossil fuels or policies that encourage sustainable
use of environmental resources),
b. technological risks (a technology with a less damaging impact on the
climate or the environment replaces a more damaging technology,
rendering it obsolete), which can be associated with missed investments
in new technologies,
c. changes in market sentiment and social norms (changing consumer and
investor choices, difficulties in maintaining relationships with Customers,
employees, business partners and investors, due to the company's
reputation for negative climate and environmental impacts).
3. Liability and reputational risks arising from the Bank's exposure to
counterparties that could potentially be held liable for negative
environmental, social and corporate governance impacts of their activities
(e.g. compensation for losses).
It should also be noted that the targeted energy transition plan for Europe is
primarily a massive investment, requiring significant amounts of capital. The
main provider of this capital will be the banks, which from the perspective of a
financial institution is an opportunity for dynamic and sustainable growth. At
the same time, the outbreak of a full-scale war in Ukraine was a shock on a
social, but also on an economic level, resulting in an unprecedented rise in
commodity prices and uncertainty about their supply. The foundations of what
we consider to be secure, stable, proven have been compromised. The image of
coal, oil and gas as stable, accessible and relatively cheap means of energy has
been seriously undermined. These developments do, however, open up the
opportunity for a more rapid energy transition, as sketched out, for example, in
the EU's REPower package. Energy from wind or solar does not have to be
supplied from another country, which in the current situation is perceived by
the public as a significant benefit and may encourage investment in this area.
At the same time, the current situation illustrates a risk that is often
overlooked. The risk of unexpected, improbable but disruptive events. It also
shows that it is time to take decisive action towards the energy transition.
2.b. Description of the impact of climate-related risks and opportunities on
the organization’s businesses, strategy, and financial planning
Sustainability commitments are an integral part of GObeyond's strategy,
forming one of its four pillars - POSITIVE. Within its framework, the Bank is
committed to developing sustainable, including green products. The scale of
their sales will achieve a share of min. 10% of sustainable assets in the Bank's
portfolio by 2025. This is one of the three most important strategic indicators
alongside return on capital and the cost/income ratio. As a result, it will also
allow for the reduction of ESG risks within the financed portfolio and the
reduction of greenhouse gas emissions.
To mitigate the negative impact of ESG risks, the Bank, through its lending
policy, supports activities related to reducing energy intensity, thermo-
modernisation of buildings, increasing the efficient in the use of other key
resources such as water. The Bank acts proactively in this area, seeking out and
supporting innovative companies whose products can generate a positive
impact. Support is not limited to providing funding to such institutions. The
bank offers professional support, helps to connect with business partners and
also has the opportunity to invest directly in an innovative company. Financing
in the sustainable and green economy sector is further supported by the
introduction in 2020 of a formal catalogue of products and investment types
with positive impact entitling them to apply preferential internal transfer
pricing, allowing for a significant strengthening of the competitiveness of
sustainable offerings.
In parallel, we recognise the value and opportunities in cooperation with the
public sector and development banks. Cooperation in this area allows us to
combine the experience of the public sector with the unique competences of the
banking sector, including our Bank. This allows us to contribute to scaling up
and leveraging public funds. Examples of such projects are: "Clean Air”
Programme allowing for the financing of thermal modernisation of homes; the
ELENA project allowing for the financing of energy audits among businesses, or
the loan with the BiznesMax guarantee for innovative (including green)
investments.
The Bank has also the unique ability to put the brakes on projects that
significantly increase the risk of climate-related changes and/or have a
significant exposure to the effects of climate change by limiting, or stopping
altogether, the financing of such initiatives, as specified, inter alia, in CSR sector
policies. An example of such a policy is i.a. the decision to completely cease
financing and cooperation with Clients involved in coal mining and combustion
by 2030 (for OECD countries).
The strategy focuses on opportunities and ensuring resilience against risks that
may have a financial impact, including an impact on strategic planning and risk
management, but also a non-financial impact. The proper management of
climate-related risks represents a strategic opportunity for the Bank. These
opportunities primarily relate to reducing the exposure of the Bank's assets to
climate change risks, including taking a long-term view related to mitigating
material risks before they start to have an adverse impact. In addition, the
Bank's activities contribute to the conservation of raw materials, including,
inter alia, the use of more efficient modes of transport and production and
distribution processes, recycling, the use of more efficient buildings or the
reduction of water consumption. By skilfully exploiting opportunities, business
models can be rebuilt and technologies upgraded, including the use of low-
carbon energy sources, the development of low-carbon goods and services, the
development of climate change adaptation solutions, the development of new
products or services through R&D and innovation.
Simultaneously, we are fully aware that in order to ensure the complete
implementation of a strategy that is completely consistent with sustainability,
it is necessary to set up teams in this area. At Bank level, the Sustainability
Area is managed by the Executive Director (with the rank of Board Member).
The area consists of three units: Energy Transformation Facilitation
Department, the CSR and Sustainable Finance Department and the
Sustainability Strategy Implementation Support Team.
Conscious of the banks' key role in financing the economy, the Bank is
continuously developing the awareness of its employees in the area of
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 170
sustainable development. In order to achieve this, intensive educational
activities are being undertaken in the area of sustainability, including climate
change. This involves a series of over a dozen training sessions for Customer
Advisors conducted in 2022 on sustainable financial products, in which
attention was also given to the threat of climate change itself and its impact on
business.
A unique initiative on the Polish market was the organisation of the ESG
Academy by BNP Paribas Bank Polska. This is a seven-month-long educational
programme completed by more than 150 Bank employees belonging to the
Sustainability Community. The programme was prepared in cooperation with
SAPERE, a consulting company that has been dealing with sustainable
development for years, and its content was additionally enriched with the
knowledge of external experts representing the bank's partner organisations,
including the UN Global Compact, UNEP/GRID-Warsaw, and the Responsible
Business Forum. The aim of the ESG Academy was to enhance employees'
knowledge, awareness and skills in the area of ESG.
2.c. Description of the resilience of the organization’s strategy, taking into
consideration different climate-related scenarios (including a 2°C or lower
scenario)
In the short to medium term, the impact of activities supporting climate
protection on financial performance will remain neutral. The scale of financing
for new investments will cover the gap associated with the discontinuation of
support for certain industries. The interest rates on such contracts are often
preferential and can have a negative impact on the interest margin. On the
other hand, it should be noted that we are often dealing with agreements
enriched with additional guarantees from external institutions. This has a
positive effect on the level of risk and RWA (Risk Weighted Assets) and thus
translates into lower capital intensity. As a result, the return on capital remains
favourable and the shareholder will not experience a negative change.
In the long term, the advantages of sustainable financing should clearly prevail,
due to the lower cost of risk compared to the most exposed industries.
Furthermore, the Bank's commitment to promoting climate transformation and
associating the Bank's brand with this area should also have a positive impact
on building long-term relationships with Clients, who are becoming
increasingly appreciative of the need for this type of change. Such a strategy
should also have a positive impact on the recruitment of young people who are
most committed to tackling climate change, supporting the need to build a
stable base of loyal Customers.
Risks
3.a. Description of processes for identifying and assessing climate-related
risk
In 2021, in line with the requirements of the EBA Guideline/GL/2020/06 of 29
May 2020 on loan origination and monitoring, the Bank has developed ESG
assessment questionnaires that have been implemented in the credit process.
As such, the Bank verifies that Clients are aware of the risks associated with the
materialisation of ESG risks and take measures to protect themselves against
them. The assessment aims, i.a., to identify the negative impact of physical and
transition risks on the Clients' business. In addition, as part of the ESG
assessment, the Bank verifies whether Borrowers have implemented/are
planning to implement solutions to protect their business from the negative
effects of climate change, including:
use of electricity from renewable energy sources,
implementation of the greenhouse gas reduction plan,
implementation of a plan to reduce water and electricity consumption or to
diversify towards renewable energy,
taking action to reduce the impact of climate change on its activities.
The Bank's approach to ESG risk analysis focuses on assessing two
perspectives:
the effects of economic activities on the environment,
the effects of the environment on business.
These two perspectives showing the impact of economic activity on the
environment and the environment on economic activity are referred to as
“double materiality”. It is considered that they are correlated, as reducing the
negative effects of economic activity on the environment in the long term
should result in reducing the negative effects of the environment on economic
activity.
3.b. Description of processes for managing climate-related risks
As stated in the Risk Management Strategy of BNP Paribas Bank Polska S.A.,
ESG risk refers to the risk of loss resulting from current or future adverse
effects of environmental, social or governance factors on the Bank's
counterparties or invested assets, which includes, i.a., environmental risk - the
risk arising from the Bank's exposures to counterparties potentially adversely
affected by environmental factors, including those arising from climate-related
changes and factors related to environmental degradation.
The process of managing climate-related risks is defined by the Bank in the
Principles of ESG Risk Management at BNP Paribas Bank Polska S.A.. The
Principles are a synthesis of the actions taken by the Bank in the area of ESG
management, in the context of their impact on the Bank's credit risk and
internal capital. By determining the risk appetite, the Bank limits its exposures
to Customers with high ESG risk. The designated risk appetite aims to
determine the level of risk that the Bank is prepared to accept in pursuit of its
strategic objectives and financial plans. The ESG risk level should be rated as
low..
To manage climate change risks, the Bank has incorporated into its loan
origination and monitoring process an assessment of the impact of long-term
climate-related changes and extreme weather events on borrowers' activities,
in line with a classification system that establishes a breakdown into:
1. Long-term climate-related changes:
a. effect of higher temperatures (air, fresh water, sea water),
b. effect of thermal shocks,
c. effect of changing wind patterns,
d. effect of changing precipitation patterns and types (rain, hail, snow),
e. effect of sea level rise,
f. effect of water stress (limited access to fresh water),
g. effect of soil and coastal erosion,
h. effect of soil degradation.
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 171
2. Extreme weather events:
a. effect of heat waves,
b. effect of cold waves,
c. effect of fires,
d. effect of storms, tornadoes, etc.,
e. effect of droughts,
f. effect of heavy precipitation (rain, hail, snow, ice),
g. effect of floods,
h. effect of landslides.
The division into the risks above was implemented on 30 June 2021, with the
entry into force of the EBA Guideline EBA/GL/2020/06 of 29 May 2020 on Loan
Origination and Monitoring. In determining the risk types, the Bank followed
the guidelines set out in the EBA Report on the Management and Supervision of
ESG Risks for Credit Institutions and Investment Firms (EBA/REP/2021/18), as
well as the risk types indicated in Commission Implementing Regulation (EU)
2022/2453 of 30 November 2022 on the disclosure of environmental, social and
corporate governance risks.
The risk assessment also examines the sensitivity of the Bank's Clients to
transition risks (transition to a climate-neutral economy).
The Bank is particularly attentive to financing sectors deemed sensitive in
terms of ESG risks (including climate risk) and is limiting its participation in
industries widely regarded as particularly damaging and unsustainable.
The Bank, pursuant to the BNP Paribas Group CSR Policies, identifies nine
sectors that are particularly sensitive in terms of ESG risks. These sectors are:
coal-based power generation, mining, , nuclear, defence and safety, forestry
(wood pulp, palm oil), agri-food, fuel in unconventional oil and gas resources
and tobacco.
In each of these sectors, the Bank applies CSR Policies and principles to
Customers operating in them. All current and potential Clients of the Bank
operating in in these sectors are informed about the CSR Policies. In order to
become a Client of the Bank or obtain financing, an entity must comply with a
number of requirements regulated by the Policy for the sector in question. With
regard to sectors that are particularly harmful in terms of sustainable
development, the Bank takes strategic decisions to exit from serving Clients
belonging to them.
From 2019, the CIB and Corporate Client Risk Division operates a so-called
second line of CSR control, which integrates the assessment of the occurrence
of ESG risks in existing and potential Clients into the overall analysis of risks in
the Client's business.
3.c. Description of how processes for identifying, assessing, and managing
climate-related risks are integrated into the organization’s overall risk
management
As a consequence of the identification of ESG risks (which includes climate
risks) as material for the Bank in 2020, it became necessary to include the
impact of environmental factors, among others, in the traditional risk
management model.
On the basis of the above, ESG risks were included in the Risk Management
Strategy and Risk Appetite. In order to mitigate and control the risks, the
principles for measuring ESG risks (which include climate risks) in the Bank's
Internal Capital Assessment Process (ICAAP) have also been developed. The
Bank's Capital Plan for 2023-2025 was supplemented with limits for ESG risks
set based on the risk measurement and materiality assessment performed.
The Bank seeks to explore the interdependencies between the different risk
categories, which includes ESG risk (which includes climate risks). In this
context, ESG risks are analysed in relation to business, reputational and credit
risks. In order to ensure the highest standards in the process of identifying,
assessing and managing climate-related risks, the Bank takes into account all
existing and emerging regulatory requirements in this area.
Metrics and targets
4.a. Metrics used by the organization to assess climate-related risks and
opportunities in line with its strategy and risk management process
The Department of Economic and Sectoral Analysis takes into account the ESG
risks of specific industries (and the value chains of these industries) both in
assessing their risks and the potential demand for green investments by
entities in these industries.
Entities in industries most heavily exposed to climate change and/or most
affected by climate-related changes should be most concerned with
investments that mitigate these risks in the short, medium and long term. Such
investments, may require significant funding from external sources such as a
bank loan. The Bank identifies nine sectors that are particularly sensitive in
terms of ESG risks. In each of these sectors, the Bank implements CSR Policies
and Principles towards Customers operating in them. In order to become a
Client of the Bank or obtain financing, an entity must comply with a number of
requirements regulated by the CSR Policy for the sector in question. Besides the
periodic analysis of risks in sensitive sectors, the EBA/GL/2020/06 Guidance on
loan origination and monitoring was implemented in 2021, which requires
banks to integrate an analysis of ESG factors into the credit process.
Consequently, from 30 June 2021, an ESG risk analysis is performed for each
new financing or increase in financing.
4.b. Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG)
emissions, and the related risks
Table 102. Group greenhouse gas emissions from operations
GHG emission source
2021
2022
Scope 1
Petrol
2,964
3,457
CNG
1,126
2,156*
Diesel
998
898
Heating oil
35
7
Refrigerants
166
-
Scope 2
Heat energy
5,172
4,250
Electricity
-
-
Business travel**
Train
14
68
Private vehicle
279
179
Airplane
38
524
Scope 1+2+business travel
market-based
10,792
11,539
*The significant increase in the Group's use of gas is due to the fact that the Leszno Campus is heated using gas. Following the
war in Ukraine, a large number of families from Ukraine (mainly Ukrsibbank employees) found shelter at the Leszno Campus from
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 172
the end of February to May 2022; a total of more than 160 people, which significantly increased the needs of the facility. Despite
the higher consumption, the reduction target for 2022 was achieved.
**In 2022, there has been a significant increase in business travel. The end of the pandemic provided an opportunity for
employees from all areas of the Bank and the Group to have a number of meetings to integrate and work more closely together
after a long period of working mainly remotely. In 2023, we are planning initiatives to raise employees' awareness of the
environmental impact of business travel (especially by air) and to encourage a reduction in delegation.
Regarding scope 1 and 2 and business travel, the Bank has set a target of
reducing greenhouse gas emissions by 55% by 2025.
Table 103. Achieving the GObeyond strategic objective (2022-2025)
Target 2025
Baseline year 2019
2022
2022 vs 2019
Reduction of CO
2
emissions from
operations - 55%
20,149
11,539
(43%)
From a Bank business perspective, Scope 3 emissions are the most relevant, in
particular those arising from Category 15 of the GHG Protocol. These include
indirect emissions of the loan portfolio over which the Bank has no direct
control.
Conscious of the role that the Bank can fulfil in the decarbonisation of the
economy, work has begun on measuring the carbon performance of the Bank's
loan portfolio. The calculations are based on the PCAF methodology. Currently,
the main activities are focused on improving the quality of the data used for the
measurement, so that the final results are as informative as possible. The
process, for the sake of consistency of information, is coordinated with
activities at BNP Paribas Group level.
The results generated will ultimately be incorporated into the Bank's already
existing processes for managing the climate risk of the loan portfolio (including
stress testing), and will also form the basis for setting goals for the
decarbonisation of the loan portfolio and the subsequent business strategy.
4.c. Description of the targets used by the organization to manage climate-
related risks and opportunities and performance against targets
The Bank monitors a range of strategic KPIs as part of the implementation of its
strategy, the performance of which is presented to the Executive Board and the
Supervisory Board on a quarterly basis. These include KPIs attributed to
climate-related risks, including targets for reducing the Bank's CO
2
emissions
and the level of sustainable assets.
Striving for a positive environmental impact is one of BNP Paribas Group's
objectives. BNP Paribas Group's strategy - GTS 2025: Growth, Technology,
Sustainability recognises the sustainability aspect as one of its three pillars.
The 2022-2025 targets at Group level include the development of financed
emissions trajectories consistent with the Net-Zero Banking Alliance (NZBA)
and work on presenting the Group's current exposure in the area of financed
greenhouse gas emissions (Scope 3, Category 15).
Sustainability activities are an intrinsic part of GObeyond Bank's 2022-2025
strategy, which includes commitments to develop sustainable products, their
sales volumes, as well as to reduce greenhouse gas emissions (in scope 1 and 2).
The Bank is accelerating the financing of any activities that promote the
decarbonisation of the economy, by setting ambitious - and regularly exceeded
- targets for renewable energy financing and actively investing in green
technologies. In 2022, sustainable financing provided by the Bank amounted to
PLN 2.7 billion. Including PLN 2.2 billion of financing for environmental
objectives ('green' financing).
The BNP Paribas Group is also one of the leading financial institutions in
issuing green bonds and sustainability bonds on the global market, as well as
working capital loans with interest rates linked to the achievement of
sustainability goals (Sustainability Linked Loans).
As a member of the Net-Zero Banking Alliance (NZBA), we are
committed to:
adaptation of the level of greenhouse gas emissions generated by
own-account lending and investment activities to the pathway
necessary to achieve climate neutrality in 2050 (temperature
increase limited to 1.5° C),
acting on credible transition scenarios published by recognized
institutions (IPCC, IEA),
focusing on the sectors that emit the most greenhouse gases and
having a central role to play in the transition towards a CO
2
-
neutral economy,
setting interim targets no later than 2030,
publishing information on progress and action plans on an
annual basis.
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 173
Wojciech Rudziński, Head of Sales Management Office Bankingi MŚP i
Korporacyjnej
Values and principles
Ethics in internal and external relations 174
Mechanisms for reporting irregularities 175
Counteracting corruption and conflicts of interest 176
Sustainable supply chains 177
Human rights 178
Litigation and claims 179
Compliance with laws and regulations 184
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Financial
results
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opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 174
Ethics in internal and external relations
[2-15] [2-16] [2-24] [3-3] [Ethics in internal and external relations] [3-3]
[Responsible sales of products and services, as well as self-regulation in this
area]
The Group's norms of behaviour and ethical standards are set out in the Code
of Conduct of the BNP Paribas Group. The document is an expression of our
commitment to being a respected European Bank with global reach. It contains
guidelines for all BNP Paribas Group employees
In accordance with the Code, employees must comply with laws and
regulations regarding, in particular:
protecting Customer interests,
counteracting money laundering and financing terrorism,
counteracting corruption,
avoiding and managing conflicts of interest,
preventing market abuse,
counteracting all forms of discrimination,
environmental protection and counteracting climate change,
responsible conduct in public life.
Every employee receives mandatory Code of Conduct training. Thus, employees
can acquaint themselves with the document and its priorities. Their awareness
of the expected attitudes is also increased through ongoing internal
communication.
In 2022, an Ethics and Standards of Conduct Director was appointed at the
Bank and an Ethics and Standards of Conduct Committee was established. It
aims to assess the key performance indicators (KPIs) related to compliance
with the Code of Conduct, as well as risks related to the standards of conduct
and the degree of project implementation in the field of ethics and standards of
conduct.
The Ethics and Standards of Conduct Committee is held quarterly and attended
by members of the Bank's management board. Once a year, a report is
submitted to the Bank's Supervisory Board. The KPIs and information on the
progress of project implementation are reported quarterly to the BNP Paribas
Group. During the Committee, members of the Management Board receive
reports on critical issues and the nature of the concerns. Concerns about
potential and actual negative impacts raised through complaint mechanisms
and other processes are described in the chapters dedicated to these aspects
(diversity policy, anti-corruption, legal compliance).
In 2022, every employee was obligated to complete at least two courses
devoted to the Code of Conduct and an additional two focused on Compliance.
Furthermore, the Bank carried out an information campaign addressed to all
employees about the importance of ethics and reporting channels in the event
of their violations. The Bank also appointed an Ethics Officer.
Each supplier of the Bank and Partner (Agent, Counterparty, Vendor) is required
to read the Code of Conduct of the BNP Paribas Group as part of the signing of
the contract.
Other documents that regulate ethical issues at the Group and Bank levels are
listed in the "Policies and procedures related to ESG" section.
Table 104. Number of employees who received trainings in 2022 on ethics in
external relations
Scope
Precise name of the training
Number of employees
Anti-Money
Laundering and
Counter-Terrorist
Anti-Money Laundering and
Terrorist Financing - Advanced
level
8,348
Scope
Precise name of the training
Number of employees
Financing training
for employees
Anti-Money Laundering and
Terrorist Financing - new
employees
Anti-Money Laundering and
Terrorist Financing - basics
Training on ethical conduct
Training on tax
schemes
Obligation to report information on
tax schemes
Tax scheme reporting (MDR)
8,076
Training on
compliance with
international
sanctions
Financial Sanctions and Embargoes
- Advanced Training
Financial Sanctions and Embargoes
- Newly hired employees
Practical case studies - Advanced
8,595
Initiatives for industry responsibility
We actively promote good practices in the Polish financial industry. In addition
to internal initiatives and the implementation of adequate policies, we raise
issues of responsibility – essential to us and our Customers – on industry fora.
Declaration of Responsible Sales
In Customer relations, we focus on ethics, empathy and an improved
understanding of our Customers’ needs. The Declaration of Responsible Sales is
devoted precisely to these issues. The document changes the approach to daily
relationships between Customers and financial institutions.
Our Bank was among the initiators of this self-regulatory project for the
financial sector. It aims to raise and disseminate ethical standards in Customer
relations, educate businesses and consumers, increase trust in the financial
industry and counteract unfair practices.
As a signatory of the Declaration of Responsible Sales, we are committed to
improving our processes and service models. We constantly undertake new
initiatives aimed at enhancing the Customer experience.
The Code of Conduct of the BNP Paribas Group defines the norms
of behavior, values and ethical standards applicable to all
employees of the BNP Paribas Group. The regulation focuses on
broadly understood ethics, including professional ethics, and
discusses issues such as avoiding conflicts of interest in activities
conducted outside the Group, rules of conduct regarding access to
confidential information, countermeasures against bribery and
corruption, and rules of financial security. The Code also discusses
the fair treatment of Customers and the protection of their
interests. It puts emphasis on transparency in communication.
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results
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 175
Key assumptions and initiatives within the project
Simplicity
Simple and transparent products
Customer education
Honesty
Fair prices
Partnership relations with Customers
Transparent product descriptions
Sensitivity
Products tailored to Customers ’needs
Equal treatment and support
Customer feedback
Simple complaint process
Customer feedback is the driving force for new
initiatives
Partnership with UN Global Compact Network Poland
We are actively involved in shaping and promoting good market practices. Our
experts take part in the Business and Human Rights programme coordinated by
UN Global Compact. They are involved in:
the Steering Committee,
the Whistleblower Protection Team,
the team for ethical and responsible communication standards.
Cooperation with the Banking Ethics Committee of the Polish Bank Association
The Bank's experts are involved in industry initiatives aimed at raising ethical
standards within the sector. They also actively participate in the Banking Ethics
Committee of the Polish Bank Association.
“Ethics in Finance” competition
As in previous years, in 2022, the Bank became one of the six sponsors in the
Polish edition of the Ethics in Finance Competition. The competition is
organised by the Banking Ethics Committee in cooperation with the Financial
Observatory in Geneva and is part of the global Ethics & Trust in Finance Prize
project. Its goal is to promote ethical attitudes in the world of finance and to
raise awareness regarding the importance of ethics in the financial sector
through the involvement of youth.
Mechanisms for reporting irregularities
[2-25] [2-26]
The Bank has adopted a zero-tolerance policy for any type of fraud or
attempted fraud by employees, Customers, counterparties and third parties.
The Anti-Fraud Policy provides details on the division and principles of
responsibility in this sphere.
The Bank has established units that provide advice on ethical and legal issues,
as well as on matters relating to the integrity of the organisation to all
employees. These units include, in particular, the Compliance Monitoring
Division and the Legal Division.
All employees are expected to familiarise themselves with international
standards and comply with relevant laws, rules and regulations in all areas, as
well as with professional standards that apply to their activities.
A key aspect of implementing the complaints and requests policy is the
Whistleblowing process: both an expression of the Bank's concern for our
employees ’well-being and a tool ensuring full compliance with existing laws. It
defines communication channels whereby potential violations can be reported
to members of the Management Board and other employees.
Irregularities should first be reported to a supervisor and/or to special units
using a dedicated address. The reports can be anonymous but may also contain
the whistleblower's personal details.
The Bank's utmost concern is to ensure the protection of persons who report
suspected breaches, therefore the Bank guarantees:
the possibility to report suspicions anonymously,
the absolute protection of the reporting and reported parties’ identities; their
details may not be disclosed to third parties unless there is a legal obligation
to do so,
an approach of the utmost seriousness, fairness and discretion to every
report,
the verification of reports by authorised personnel to resolve concerns fairly
and impartially.
Communication channels for reporting
Reports not directly concerning a Member of the Bank's Management Board:
by correspondence, addressed to the President of the Management Board of
the Bank, BNP Paribas Bank Polska S.A., ul. Kasprzaka 2, 01-211 Warsaw, with
the note: "President of the Management Board – Whistleblowing",
by e-mail: anonimowe.zgloszenia@bnpparibas.pl,
in person: at a meeting with the President of the Bank's Management Board.
Reports concerning at least one Member of the Bank’s Management Board:
by correspondence, addressed to the Supervisory Board, BNP Paribas Bank
Polska S.A., ul. Kasprzaka 2, 01-211 Warsaw, with the note: "The Supervisory
Board – Whistleblowing",
by e-mail: anonimowe.zgloszenia-rada@bnpparibas.pl.
Reports regarding sanctions and embargo incidents can be submitted via
standard communication channels, but may also be delivered using direct
communication with a dedicated Compliance unit (Group Financial Security US).
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 176
Counteracting corruption and conflicts of interest
[2-15], [2-24], [205-2], [205-3]
Corruption prevention is based on standards set out in the Anti-Corruption
Policy. The regulation contains guidelines on identifying and reducing the risk
of corruption. It defines the principles of conduct and scope of responsibility in
this area. Thanks to these guidelines, all events of a potentially corrupt nature
are monitored. 100% of the Bank's operations are analysed to exclude
corruption.
We have a zero-tolerance rule for all forms of corruption, including accepting,
offering, requesting, giving or agreeing to additional benefits, items or
advantages.
The Bank's anti-corruption system is based on:
internal regulations specifying corruption-prevention methods,
a process of reporting corruption incidents to the appropriate organisational
units of the Bank,
Corruption risk assessments
due diligence in establishing relationships with third parties,
operational control (especially as regards accounting) maintained as part of
the implemented internal control system,
employee training to increase awareness and show paths of action in
specific situations.
The Bank continuously evaluates its management and control system
(procedures, reporting, audits, training) for corruption prevention. Appropriate
internal regulations in this respect are implemented and updated on an
ongoing basis. Risk mapping and the analysis of corruption-related information
are centrally supervised. The Managing Director of the Compliance Division
appoints a Corruption Prevention Correspondent, whose tasks include
coordinating anti-corruption activities.
To counteract corruption, the Bank monitors, i.a., indicators related to reported
fraud cases, identified conflicts of interest, accepted/given gifts and invitations,
due diligence in establishing relations with
Customers/contractors/intermediaries, employee awareness levels.
Table 105. Confirmed cases of corruption and actions taken
Indicator
2022
Total number of confirmed cases of
corruption
1*
Type of corruption in confirmed cases
Passive corruption
Total number of confirmed cases that
caused employees to be fired or disciplined
for corruption
1
Total number of confirmed cases where a
contract with a business partner was
terminated or could not be renewed due to
corruption-related violations
0
Were there any public proceedings against
the organisation or its employees regarding
corruption in the current reporting period?
No
*A Client center’s employee demanded a bribe from a Customer in exchange for preferential pricing terms to a product. The Bank
informed the public prosecutor's office of the suspected offence and the employee's contract was terminated with immediate effect.
We expect our business partners (suppliers, contractors, partners cooperating
with the Bank and its Customers on the Bank's behalf) to act in accordance
with the principles set out in the Code of Conduct of the BNP Paribas Group,
especially in the Appendix dedicated to counteracting corruption. An anti-
corruption clause is an integral part of each agreement concluded by the Bank
with its business partners.
The applicable policies in the area of counteracting corruption are listed in the
“Policies and procedures related to ESG’ section.
Anti-corruption processes must be transparent and understandable for all
employees of the Bank. Therefore, we conduct relevant training, available to all
employees, and we provide additional information through internal
communication channels. A separate training course is addressed to employees
particularly exposed to the risk of corruption. It provides i.a., practical solutions
which help to counteract the risks. The Corruption Prevention Correspondent
organises additional training for individual units of the Bank.
In 2022, the Bank implemented an updated training programme devoted to the
Code of Conduct. One of its modules was devoted to counteracting corruption.
Additionally, we designed a dedicated intranet site, which describes the anti-
corruption system. IT solutions that will enhance the monitoring of key
corruption indicators are also being developed.
Table 106. Courses on anti-corruption policies and procedures for employees
and managers in 2022
Number and percentage of employees who completed anti-
corruption training in 2022
7,531
73.72%
Management
9
100.00%
Key managers
99
95.19%
Managers
805
78.08%
Other employees
6,618
72.96%
The statistics include the training "Conduct Journey-Season 2". Some employees who were hired at the Bank in the second half of
the year in the first instance were required to undergo ethical conduct training, incorporating material from the first two parts of
the training, also covering the aspect of anti-corruption
Number and percentage of employees to whom the Bank’s anti-
corruption policies and procedures were communicated in 2022
7,873
100%
Management
9
100%
Key managers
119
100%
Managers
828
100%
Other employees
6,917
100%
The calculation includes active employees in 2022.
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 177
Sustainable supply chains
[2-6] [204-1] [308-1] [414-1]
We are a large Bank and an attractive contractor for hundreds of enterprises.
We wish to use our influence to promote the principles that we follow in our
daily activities.
Our Supply Chain Commitments:
responsible choice of suppliers,
equal treatment of suppliers in financial matters,
promoting suppliers who support CSR initiatives.
There were no significant changes to the supply chain during the reported
period.
We work with a group of around 3,500 suppliers. Within the scope of activities
of the purchasing area, there are topics above PLN 10,000 and for outsourcing
EUR 1 - in total concerning around 2,800 suppliers. The number of key
suppliers includes 109 suppliers of a critical and significant nature and with the
highest turnover. The needs for the delivered product or service are agreed on
an ongoing basis with the business owners within the Bank, e.g. consultancy
support, translations, purchase of equipment or office supplies.
CSR Declaration
To continue our responsible purchasing policy and with suppliers in mind, the
Bank consistently uses the CSR Declaration - a document which constitutes a
decalogue of cooperation with suppliers. By signing the CSR Declaration,
suppliers confirm compliance with ethical principles, working conditions and
safety, regulations regarding the employment of minors, combating forced
labour, discrimination and environmental issues. Each new supplier is assessed
according to these criteria.
The CSR declaration for suppliers aims to promote social responsibility among
stakeholders and encourage responsible practices among suppliers.
The CSR declaration is compliant and consistent with the requirements of the
BNP Paribas Group. Thus, our local operations are completely in harmony with
the Sustainable Sourcing Charter.
Each supplier participating in the procedure is obliged to sign the CSR
Declaration. In 2022, 27 new suppliers signed the CSR Declaration, which is 23%
of all suppliers participating in tender inquiries. The Bank focused its
cooperation on existing suppliers with whom it has already signed CSR
Declarations. The signature of the same document is not required for each
tender procedure.
In 2022, we introduced the ESG/CSR Partner Declaration of responsible
cooperation. Every new Partner (agent, contractor, seller) must read it before
signing a contract. The Bank also expects its Partners to commit to observing
the principles of ethics, providing proper working conditions and meeting the
social and environmental criteria outlined in the CSR Declaration.
ESG questionnaire for suppliers
In 2022, the Bank set out to implement a new version of the ESG questionnaire
– a flexible document that can be adjusted to the size of the supplier and can
help to determine the risk levels of cooperation in the area of CSR.
Suppliers who participate in onboarding processes are verified in terms of ESG.
Their answers should confirm the existence of internal policies and strategies
in line with the Bank's expectations. The responses affect the supplier's
performance in the tender process, constituting between 0 and 10% in the final
evaluation. In addition, starting in 2023 we will be assessing the CSR risks of
cooperation with suppliers on a scale of 1 to 4. It will ensure the conscious
management of sustainable supply chains and enhance the Bank's and Group's
communication regarding environmental, social and management policy
aspects.
We specifically monitor environmental issues related to our supply chain. From
2022 onwards, when deciding to work with suppliers we take environmental
risks into account. When estimating its level, we check whether potential
suppliers have, among other things, an environmental and climate policy, and
in which areas it obliges them to measure and continuously improve their
environmental performance.
In November 2022, the Bank signed and implemented the industry standards of
the Marketing Communications Association, the Polish Association of Logistics
and Procurement Managers and the International Advertising Association. The
20+ years of the advertising sector's experiences show that in the long term,
standards help both individual companies and the industry to increase the
effectiveness of advertising and marketing resources, avoid wasting resources
and money and strengthen the role of marketing and communications in
business. Therefore, we want to promote these standards and practice them as
a Bank
10%
of the overall supplier assessment
was the signing of the CSR
Declaration and ESG Questionnaire
responses
85%
of the Bank's expenses on products
and services in 2022 were
purchases from local suppliers
We respect the efforts that our suppliers – including those who
were ultimately rejected – put into offer preparation. In 2022, we
implemented the so-called Rejection Fee for creative agencies.
Entities participating in tender procedures
that did not win, but prepared good, highly rated offers, are
reimbursed for the costs of offer preparation. We have taken such
a step as the first and (so far) the only Bank in Poland.
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execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 178
Human rights
[2-23] [3-3] [Respect for human rights in business]
Promoting diversity and counteracting discrimination is a key aspect of the
Bank's management model and the management principles of the BNP Paribas
group.
Our priority is to treat all employees and external partners fairly and to prevent
any type of discrimination, especially based on age, gender, ethnicity, religion,
nationality, political beliefs, sexual orientation, disability and other factors.
In 2012, the BNP Paribas Group signed the BNP Paribas Declaration on Human
Rights, thus ensuring respect for human rights within its areas of influence,
including employees, suppliers, Customers and local communities. The BNP
Paribas Group Code of Conduct stresses the importance of treating all
employees with respect. The Code describes employees ’expected behaviours
and attitudes inside and outside the organisation.
In addition, the BNP Paribas Group signed the BNP Paribas Agreement on
Fundamental Rights and Global Social Solutions as well as the ILO Global
Business and Disability Network Charter (International Labor Organisation).
Thus, the Group confirmed its compliance with international standards on
human rights and committed to their promotion, as well as expressed its
support for the UN Guidelines on Business and Human Rights.
The BNP Paribas Group observes several principles and standards that underlie
its business activities, including:
The 10 principles of UN Global Compact,
UN Sustainable Development Goals,
UN Guidelines on Business and Human Rights,
OECD Guidelines for Internationally recognised Business Enterprises,
Internationally recognised human rights standards as defined by the
International Bill of Human Rights,
Core labour standards defined by the International Labour Organisation,
BNP Paribas Group Code of Conduct,
BNP Paribas Human Rights Declaration,
CSR Declaration for BNP Paribas Suppliers.
Since 2016, the Bank has also been a signatory of the Diversity Charter, an
international initiative supported by the European Commission. It is devoted,
among other things, to non-discrimination in the workplace, and involving all
employees as well as business and social partners in anti-discrimination
initiatives.
The Bank's human rights management includes, among other things,
monitoring the report indicators of mobbing, discrimination, harassment and
violations of employee rights.
The Bank has a zero-tolerance policy with regard to mobbing. Mobbing
prevention is regulated by the Anti-Mobbing Policy implemented at the Bank. It
enables the employer to prevent the phenomenon and to react immediately if it
occurs. Employee reports on mobbing are investigated by the Anti-Mobbing
Commission.
The Bank has implemented Principles for dealing with reports of harassment
and sexual harassment in professional relations. These enable the safe
reporting of reasonable suspicions without fear of retaliation against the
reporting party. This document also regulates issues related to the protection
of human rights. It implements solutions adopted in the BNP Paribas Group
Policy Treatment of harassment notifications.
The Diversity Management Policy contains regulations for managing the risk of
discrimination. It aims to create and promote a diverse work environment that
uses the potential of all employees. The policy obliges all employees to comply
with the adopted principles in all HR management processes.
Human rights training
In 2020, the BNP Paribas Group developed an e-learning module entitled
"Understanding and implementing human rights in the company.” It is
mandatory for employees who are involved in identifying potential risks
regarding human rights violations, including those connected with areas such
as CSR, risk, purchases and sales management. The assignment and completion
of this training by employees from the aforementioned areas is monitored at a
global level. The training is also available to all interested employees. By the
end of December 2022, the training was assigned to 165 people and completed
by 133 people.
In 2021-22, the BNP Paribas Group prepared and implemented a series of
mandatory and dedicated e-learning courses for all employees on the
principles of the Code of Conduct. The implementation rate of these training
courses is close to 100%.
In addition, the Bank's Human Resources Management Department regularly
provides training on discrimination and mobbing. In 2020, two webinars were
organised and attended by nearly 900 employees. They were conducted by
Karolina Kędziora, a legal advisor and the president of the Polish Society of
Anti-discrimination. In 2021 the initiative was continued, and we organised a
webinar for managers. Almost 300 people took part in the event. Recordings of
the webinars are shared with employees in a dedicated section on the intranet
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Corporate
governance
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 179
Litigation and claims
Legal risk
As of 30 September 2022, there were no proceedings in the court, arbitration tribunal or state administration authorities
regarding liabilities or receivables of the Bank, the value of which would exceed 10% of the Bank's equity.
Court decision regarding calculation of the interchange fee
On 6 October 2015, the Court of Appeals issued a decision regarding calculation of the interchange fee by banks acting in
agreement. Thus, the decision of the 1st instance (Regional) Court of 2013 was changed by dismissing the banks’ appeals
in whole, while upholding the appeal brought by the Office of Competition and Consumer Protection (UOKiK), which had
questioned a considerable reduction in the fines by the 1st instance court. This denotes that the penalty imposed under
the first decision of the President of UOKiK of 29 December 2006 was upheld. It involved a fine levied on 20 banks,
including Bank BGŻ S.A. and Fortis Bank Polska S.A., for practices limiting competition by calculating interchange fees on
Visa and MasterCard transactions in Poland in agreement.
The total fine levied on Bank BGŻ BNP Paribas S.A. (presently BNP Paribas Bank Polska S.A.) amounted to PLN 12.54
million and included:
a fine for the practice of Bank Gospodarki Żywnościowej in the amount of PLN 9.65 million; and
a fine for the practice of Fortis Bank Polska S.A. (FBP) in the amount of PLN 2.89 million.
The penalty was paid by the Bank on 19 October 2015. The Bank prepared a last resort appeal against the aforesaid court
decision and brought it on 25 April 2016. On 25 October 2017, the Supreme Court overruled the judgment of the Court of
Appeal and remitted the case. Acquisition of the core business of RBPL did not change the situation of the Bank as RBPL
was not a party to this claim.
On 23 November 2020, the Court of Appeal quashed the judgment of the first instance court and remitted the case for re-
examination. In November 2022, the first hearing was held.
Corporate claims against the Bank (interchange fee)
As of 31 December 2022 the Bank received:
33 requests for settlement from companies (merchants), due to interchange fees paid in relation to the use of payment
cards, (two from companies which submitted their requests twice and, one from the company which submitted its
request three times and one from a company which submitted two requests for different payment methods). The total
amount of these claims was PLN 1,028.02 million, including PLN 1,018.05 million where the Bank had joint responsibility
with other banks;
4 requests for mediation before the PFSA. The requests were sent to the Bank by the same entrepreneurs who had
previously submitted requests for a settlement attempt. The total value of claims arising from the above applications
amounts to PLN 40.29 million, of which PLN 37.79 million relates to joint liability with other banks.
Litigation and claims of investment fund participants in connection with the performance of the function of investment
fund depositary.
As of 31 December 2022, the Bank had received a total of 72 individual lawsuits and one collective lawsuit by investment
fund participants, related to the performance of the function of investment fund depositary (including the performance of
this function by Raiffeisen Bank Polska S.A.). The total amount of claims covered by the above-mentioned lawsuits is PLN
144 million. The vast majority of the lawsuits were filed by participants of the Retail Parks Fund Fundusz Inwestycyjny
Zamknięty Aktywów Niepublicznych in Liquidation (hereinafter RPF Fund) and participants of the EPEF Fundusz
Inwestycyjny Zamknięty Aktywów Niepublicznych and EPEF2 Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych.
The collective lawsuit was filed on behalf of 397 participants of the RPF Fund, and concerns claims in the total amount of
PLN 96 220 800. The allegations raised by the plaintiffs in the lawsuits focus, in particular, on the improper performance
by Raiffeisen Bank Polska S.A., and then the Bank, of its obligations to ensure that the value of an investment fund's net
assets and the value of net assets per investment certificate are calculated in accordance with the law and the investment
fund's statute, and the obligation to verify the compliance of an investment fund's operations with the law governing
investment funds or with the statute. The Bank's position is that the claims of fund participants are unfounded. All legal
proceedings are pending before courts of first instance. No verdict has yet been issued in any of the cases.
Proceedings regarding recognizing a standard contract as prohibited
On 22 September 2020, the Bank received a decision of the President of the Office of Competition and Consumer Protection
(UOKiK) No. DZOIK 14/2020, in which the President of UOKiK:
found certain provisions of the standard contract (the so-called anti-spreading annex) concerning the principles of
determining currency exchange rates illegal and prohibited their application;
obligated the Bank to inform all Customers who are parties to the annex about the decision and its consequences and to
post information about the decision and its content on its website;
imposed a fine on the Bank in the amount of PLN 26,626 thousand payable to the Financial Education Fund.
The Bank appealed against the decision within the statutory deadline. The Bank has established a provision for the above
penalty in full amount. The first hearing was set for 29 June 2022. The court requested the Bank to submit additional
explanations and documents and adjourned the hearing until 21 September 2022, on which the court delivered his
judgment and annulled the decision of UOKiK. The President of UOKiK filed an appeal against the judgment.
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Proceedings on practices violating collective consumer interests - unauthorised transactions
On 8 July 2022, the UOKiK initiated proceedings related to the practices violating the collective interests of consumers. The
UOKiK alleges that the Bank, upon receipt of a consumer complaint regarding an unauthorised transaction, did not
automatically return funds to Customers within the D+1 deadline, but instead conducted a preliminary investigation
procedure to determine whether the incident could be classified as a security incident (fraud) or a transaction
accepted/conducted by the Customer. The second allegation of the UOKiK relates to the Bank providing inappropriate
information to Customers when rejecting complaints about the disputed transaction. When rejecting such complaints, the
Bank explains that, according to its systems, the transaction is considered authorised, and thus, if the Customer questions
this the situation should be considered as Customer negligence.
On 31 August 2022, the Bank replied to the UOKiK, using the following reasoning:
The Bank refunds the amounts of transactions that were unauthorised - the lack of authorisation is verified in the banking
systems due to the provisions of the agreement concluded with the Customer. The agreement specifies the procedure and
factors required to authenticate and accept transactions in accordance with European and Polish law.
The Bank disagrees with the UOKiK's position that the questioning of any transaction by a Customer automatically triggers
an obligation to return it. Such a position is contrary to Article 72 of the PSD. This obligation should arise and be reviewed
taking into account all provisions of the PSD, the Regulatory Technical Standards (RTS) and the Polish Payment Services
Act, not only in terms of authentication, but also in terms of liability for the transaction or fraud disclosed by the
Customer.
According to the Bank, the UOKiK's position is the result of incorrect implementation of the PSD into Polish law. According
to the PSD, the Bank should prove proper authentication, and not authorisation. Under Polish law, the Bank is obliged to
demonstrate that authorisation has been carried out by the Client.
When rejecting complaints, the Bank correctly informs Customers of the verification of the correct authentication of the
transaction, which at this stage constitutes proof that the Client has performed it. Accordingly, the Bank informs the
Customer that if the Customer still claims that such a transaction was not authorised, the transaction must be the result
of fault or negligence on the part of the Customer.
Proceedings for practices violating the collective interests of consumers - credit moratoria
On 5 September 2022, the Bank received the UOKiK's decision to initiate proceedings against practices that violate the
collective interests of consumers by limiting the possibility to apply for a mortgage loan withholding by limiting one
application to 2 months, whereas the Customer should be able to apply for all periods at the same time (up to 8 months).
The Bank disagreed with the allegations and has sent its reply to UOKiK, in which it pointed that all individual applications
applied by Customers (for any number of months) were accepted and processed. Thus, there was no violation of the
collective interests of consumers, as the Bank did not deprive Customers of their rights, but only failed to fully automate
the electronic application as of the effective date of the law. At the same time, the Bank informed UOKiK that it had
changed the questioned practice by launching a new application form in GOonline e-banking on 8 September 2022,
allowing Customers to apply for any/all periods simultaneously (up to 8 months).
On 17 January 2023, the Bank received the Decision of the UOKiK, in which:
- it recognized the questioned practice as violating the collective interests of consumers;
- the practice was found to be abandoned;
- it ordered publication of the decision;
- it imposed a penalty on the Bank in the amount of PLN 2,720,515.50 (reduced by 50%: 30% - for cessation of the practice,
20% as a result of initiating a meeting and expressing willingness to cooperate).
The Bank has appealed the decision to the SOKIK.
Litigation concerning CHF credit agreements in the banking sector
After the judgment of the Court of Justice of the European Union in the CHF-indexed mortgage case (C-260/18), the
number of lawsuits related to CHF mortgages against banks is gradually increasing. According to the Association of Polish
Banks (ZBP), the number of pending lawsuits related to CHF loan agreements at the end of October 2022 reached over 104
thousand compared to 77 thousand at the end of 2021. During the first nine months of 2022, over 27 thousand new claims
related to foreign currency loans were issued against the banks. This resulted in an increase in provisions for these
proceedings created by banks having CHF mortgage loan portfolios. The amount of these provisions created by listed
banks in 2021 amounted to approximately PLN 7.8 billion, and in the third quarter of 2022 to PLN 7.3 billion, contributing
to the total value of provisions created for this purpose in the amount of PLN 18.9 billion at the end of 2021 and PLN 27.2
billion at the end of the third quarter of 2022.
Proceedings instigated by the Bank’s Customers being parties to CHF denominated loan agreements
The gross balance sheet value of mortgage and housing loans granted to individual Customers in CHF as of 31 December
2022 amounted to PLN 4.09 billion, compared to PLN 4.53 billion at the end of 2021.
As of 31 December 2022 the Bank was the defendant in 3,470 (1,649 new cases in 2022) pending court proceedings
(including validly closed cases, Clients brought a total of 3,819 claims against the Bank), in which the Bank's Customers
demanded the annulment of mortgage loan agreements regarding foreign currency loans or loans denominated in CHF, or
declaration that the contract is permanently ineffective. The claims are based in particular on a contravention of Article 69
of the Banking Act or on the occurrence of abusive clauses which cause the contract cannot be remained in force (article
353
1
of the Civil Code). The Bank is not a party to any collective claim regarding these loans. The total value of claims
pursued in the currently pending cases as of 31 December 2022 was PLN 1,549.46 million (as of 31 December 2021 was
PLN 858.03 million), and in legally binding cases PLN 150.36 million (PLN 41.36 million as of 31 December 2021).
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Until 31.12.2022 the following judgments have been issued in 349 proceedings that have been legally concluded: 97
judgments in favour of the Bank, including 60 proceedings in case of which a court settlement agreement was concluded,
and in 252 cases the courts ruled against the Bank by declaring the loan agreement invalid or permanently ineffective).
The Bank creates provisions on an ongoing basis for pending litigation involving denominated or foreign currency loans,
taking into account the current status of judgments in cases against the Bank and the developing line of case law.
The total value of provisions created as at 31 December 2022 amounted to PLN 1,892.4 million (as at 31 December 2021 it
amounted to PLN 1,290.4 million), with an impact on the Bank's income statement of PLN 740 million in 2022 (in 2021, it
amounted to PLN 1.045.3 million).
The provision is created in accordance with IAS 37 ‘Provisions, contingent liabilities and contingent assets. Provision for
pending cases is calculated on an individual basis, while for future cases using the portfolio method. While calculating the
provision, the Bank takes into account, inter alia, the number of certificates downloaded by Clients for trial purposes, the
estimated probability of Clients filing cases, the estimated number of future claims, the number of claims filed, the
probability of losing the case, and the Bank's estimated loss in the event of an unfavourable judgment. In addition, the
Bank included in the provisioning model the estimated number of settlements to be signed with Customers. The amount of
the provision for the estimated settlements was PLN 397.7 million from the total balance of provisions.
It should be stressed that the Polish courts, despite contrary indications arising from CJEU rulings (C-19/20 and C-932/19),
in the vast majority rule that credit agreements are invalid or ineffective. A number of Supreme Court judgments have
been handed down in recent months (according to data at the end of December, there were 80 judgements, of which less
than half concerned denominated loans); more than half of these already have written justifications, including 15 cases
related to denominated loans.
The Bank estimates the probability of losing a case based on historical judgments, separately for the foreign currency and
denominated loan portfolios. Due to the observed volatility in case law, the Bank, when estimating the probability of an
adverse judgment, takes into account judgments made after 31 December 2020.
In estimating the loss in the event of a judgment declaring the loan invalid, the Bank assumes that the Customer is obliged
to return the principal paid without taking into account the remuneration for the use of the principal, the Bank is obliged
to return the sum of the principal and interest instalments paid by the Client together with the statutory interest for late
payment, in cases in progress and the Bank writes down the loan exposure.
The accounting effect of signing a settlement agreement with a Customer is the derecognition of a CHF loan, recognition of
a new loan in PLN and the recognition of a result from the derecognition as well as the use of a provision for legal risk of
CHF loans. In 2022, the Bank used PLN 150 million of the provision for legal risk of CHF loans in connection with the
concluded settlements.
The accounting effect of the final judgment declaring the loan agreement invalid is the derecognition of CHF loan exposure
as well as the utilization of the provision for legal risk of CHF loans. In 2022, the Bank used PLN 85 million of the provision
for legal risk of CHF loans in connection with the receipt of final judgments declaring loan agreements invalid.
Should the assumed average loss change by +/- 5%, with all other significant assumptions unchanged, the amount of the
provision would change by +/- PLN 78 million.
The Bank conducted a sensitivity analysis of the model used to estimate the number of lawsuits lost. A change in this
estimate would have the following impact on the estimated loss due to legal risk related to CHF loans.
parameter
scenario
Impact on Bank’s loss
due to legal risk
Percentage of lawsuits lost
+5 p.p.
+PLN 66 million
-5 p.p.
-PLN 80 million
The Bank conducted a sensitivity analysis of the model used to estimate the number of future lawsuits. A change in the
number of future lawsuits would have the following impact on the estimated loss due to legal risk related to CHF loans.
parameter
scenario
Impact on Bank’s loss
due to legal risk
Percentage of lawsuits lost
+20%
+PLN 91 million
-20%
-PLN 91 million
Additionally, if 1% of Customers with CHF loans filed a lawsuit against the Bank, the loss due to legal risk would increase
by approx. PLN 35 million.
When calculating the expected loss on legal risk related to CHF loans, the Bank takes into account the available historical
data, including the content of judgments in concluded cases. The Bank monitors the number of collected certificates and
the changing number of lawsuits in order to update the provision estimate accordingly.
The current line of jurisprudence in cases involving actions by borrowers is unfavourable to the banks, but it is important
to note a number of still unclarified legal issues relating to foreign currency-linked loans, in particular relating to the
effects of declaring a loan agreement invalid, including the banks' ability to demand remuneration for the use of capital.
The above issues are important for assessing the risks associated with the proceedings in question.
The Bank monitors the courts’ rulings on an ongoing basis and will adjust the level of reserves to the current case-law. At
the same time, the Bank is aware that the assumptions made are subject to a subjective assessment of the current
situation, which may change in the future. In determining the value of the provision, the Bank relies on all information
available at the date of signing the Financial Statements.
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Current case law of CJEU and of the Supreme Court on loans in CHF
There was one ruling before the CJEU in 2022 concerning the issues related to CHF loans. On 8 September 2022, the CJEU
handed down a judgment in three joined cases concerning indexed and denominated loans granted in Poland (C-80/21 to
C-82/21). The Court confirmed that:
a national court may not replace an abusive contract term (in order to avoid the invalidity of the contract) by an
interpretation of the parties' statement of intent or by a provision of national law of a dispositive nature.
it is possible to declare only part of a contract term abusive, provided that that abusive part can be severed in a way
which does not affect the substance of the rest of the contract term. If the deletion would amount to altering the content
of the term by changing its essence, this is prohibited. It is for the national court to examine in this respect.
the limitation period for a consumer's claims for reimbursement of sums unduly paid on the basis of an abusive
contractual term starts to run from the time when the consumer became aware, or should have become aware, of the
unfair nature of the contractual term. On the other hand, it is for the national court to determine that point in time,
taking into account the circumstances of the particular case.
Pending at the CJEU is the preliminary question in Case C-520/21 of Millennium Bank, which concerns whether, in the
event of the cancellation of a loan agreement, the parties have any claim for the use of the capital by the other party
(including the entrepreneur as well as the consumer). The question relates to any possible claim by both parties
(remuneration, compensation, reimbursement of expenses or valorisation of the benefit) when the court finds that the
contract has collapsed. The hearing was held on 12 October 2022. The hearing was attended by representatives of the
European Commission, the Polish government, the Financial Ombudsman, the Ombudsman, the Polish Financial
Supervision Authority (among others).
In December 2022, the CJEU received another preliminary question relating to the ability of a bank to assert claims for the
use of capital (the case was designated sig. C-756/22).
In an opinion issued in case C-520/21 on 16 February 2023, the Ombudsman General of the CJEU pointed out that Directive
93/13 does not specify what are the effects of declaring that a consumer contract becomes legally non-existent once
unfair terms are removed from it. These effects are determined by member states on the basis of their national law in a
manner consistent with the Union law.
With regard to the consumer's claims against the Bank, the Ombudsman General assumed that the provisions of Directive
93/13 do not preclude a judicial interpretation of national law, according to which, if a credit agreement concluded
between a consumer and a bank is declared invalid from the outset because it contains fraudulent contractual terms, the
consumer, in addition to a refund of the money paid under the agreement and the payment of statutory interest for late
payment from the time of the demand for payment, may, following such a declaration, also claim additional benefits from
the bank. It is for the national court to determine, in light of national law, whether consumers are entitled to assert such
claims and, if so, to rule on their merits.
With regard to the bank's ability to assert claims of a similar nature against consumers, the Ombudsman General
proposed that the Court should rule that the bank may not pursue claims against the consumer that go beyond the return
of the loan principal transferred and the payment of statutory interest for delay from the time of the request for payment.
According to the Ombudsman General, the proposed solutions are in line with the purpose of the directive, i.e. to grant
consumers a high level of protection.
The Ombudsman General's opinion does not prejudge the outcome and is not binding on the CJEU. The date of the CJEU's
judgment is unknown.
Due to the fact that the Ombudsman's opinion is not binding, it does not prejudge the outcome, leaves wide scope for
interpretation, the judgment of the CJEU is impossible to predict, as well as the application of this judgment by national
courts, the opinion cannot be the basis for changing the level of provisions for legal risk related to mortgage loans in CHF
in these report.
Assuming that the future ruling of the CJEU will be entirely consistent with the theses of the above-mentioned opinion of
the Ombudsman General and finds that banks do not have the right to remuneration for the use of capital, the Bank points
out that the remuneration for the use of capital for the Bank is not a parameter used in the current model of the Bank's
provisions and does not have a direct impact on the Bank's risk expressed by the level of provisions related to the effects
of cancellation of loan agreements. However, in the previous models, the Bank did not take into account the remuneration
for the client for the use by the Bank of the instalments repaid by him relating to loan, which was considered invalid.
Estimating the amount of potential costs related to this risk requires specifying the assumptions on the basis of
establishing a judicial interpretation, and then the line of jurisprudence, and will be possible at the earliest after the CJEU
has issued a ruling.
Currently, the theses of the resolution of the 7 judges of the Civil Chamber of the Supreme Court of 7 May 2021 in the case
ref. III CZP 6/21 (resolution having the force of legal principle) are taken into account in judicial decisions. . In the ruling
responding to a legal issue presented by the Financial Ombudsman, the Supreme Court indicated by reasoning the grounds
that:
(1) the borrower may agree to the continued validity of terms which may be unfair, in which case they take effect from
the date of conclusion of the contract,
(2) if the contract falls due to the unfair terms contained therein, each party has a claim for repayment of the
performance made by that party (the so-called two-condition theory),
(3) the limitation period for the Bank's claims for reimbursement of the principal begins to run only from the moment
when the agreement has become definitively ineffective (the basis for the performance has been lost),
(4) the agreement becomes permanently ineffective from the moment when the borrower, having been informed of all
the consequences of the failure of the agreement, including the possible specific negative consequences of such a failure,
makes a declaration to not keep the agreement in force. The borrower should be informed of the consequences of the
failure of the agreement by the court in the course of the proceedings.
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The meeting of the full bench of the Civil Chamber of the Supreme Court concerning the legal issues presented on 29
January 2021 by the First President of the Supreme Court in the case III CZP 11/21 (the current signature is III CZP 25/22)
was postponed without a date, following the Supreme Court's formulation of preliminary questions to the CJEU. The
preliminary questions are aimed to establish whether the Civil Chamber in its current composition can be regarded as an
independent court and thus whether it has the capacity to pass a resolution on the legal questions posed at all.
The First President of the Supreme Court requested a resolution of the Civil Chamber on the following issues:
1. If it is concluded that a provision in an index-linked or denominated loan agreement, which relates to the method of
determining the exchange rate of the foreign currency, constitutes an illicit contractual term and is not binding on the
consumer, may it be assumed that that provision is replaced by another method of determining the exchange rate of the
foreign currency which results from legal or customary rules?
If the answer to the above question is negative:
2. If it is not possible to establish a foreign currency exchange rate binding on the parties in a loan agreement indexed to
such a currency, can the agreement be binding on the parties in its remaining scope?
3. If it is not possible to establish a foreign currency exchange rate in a loan agreement denominated in a foreign currency,
can the parties remain bound by the agreement?
Irrespective of the answers to questions 1 to 3:
4. If a loan agreement is invalid or ineffective, and as a result of such agreement the Bank has disbursed to the borrower
the whole or part of the amount of the loan and the borrower has made repayments on the loan, do separate claims for
wrongful performance arise in favour of each of the parties, or does only one claim arise, equal to the difference in
performance, in favour of the party whose total performance was higher?
5. f a loan agreement is invalid or ineffective as a result of the unlawful nature of certain of its terms, does the limitation
period for the Bank's claim for repayment of the amount paid under the loan start to run from the moment at which those
sums were paid?
6. If, in the case of the invalidity or ineffectiveness of a loan agreement, either party has a claim for repayment of the
performance made under such agreement, may that party also claim remuneration for the use of its funds by the other
party?
If the CJEU confirms the ability of the Civil Chamber of the Supreme Court to rule and the Supreme Court passes a
resolution, the Bank will analyse the content of the resolution after its publication, including its impact on further case law
and the value of the parameters used to determine the value of legal risk provisions. At this moment it is not possible to
predict whether the resolution will be adopted and even more its impact on the provisions estimation.
On 28 April 2022, the Supreme Court (composed of 3 judges) adopted a resolution with a signature III CZP 40/22, according
to which: "Contrary to the nature of the legal relationship of a loan indexed to a foreign currency are provisions in which
the lender is authorised to unilaterally determine the exchange rate of the currency relevant for calculating the amount of
the borrower's obligation and for determining the amount of the loan instalments, if objective and verifiable criteria for
determining this rate do not arise from the content of the legal relationship. If the provisions meet the criteria for being
considered prohibited contractual provisions, they are not invalid, but are not binding on the consumer within the
meaning of Article 385(1) of the Civil Code." An analysis of the justification of the Supreme Court's resolution, indicates
that when there occur the prerequisites for the application of the provision of Article 385(1) and Article 353(1) of the Civil
Code, the court should apply the sanction of ineffectiveness of the contractual provision, without ruling it invalid on
general principles. Although the ruling was issued in a case concerning indexed credit, it can also be applied to
denominated and foreign currency loans.
On 20 May 2022, the Supreme Court issued its first ruling on a foreign currency loan granted by the Bank (II CSKP 713/22).
According to the Supreme Court, a foreign currency loan exists only if the agreement unambiguously establishes the
amount of the loan granted and actually disbursed to the borrower exclusively in a foreign currency and provides for
repayment of instalments exclusively in the currency of the loan granted. According to the Court, the parties entered into a
loan agreement denominated in CHF, and nothing in the agreement directly provided for the Client's claim for payment of
the amount of loan made available in CHF.
However, it should be noted that in another decision, the Supreme Court took a different stance (decision of 24 June 2022,
I CSK 2822/22), stating that the features of a foreign currency loan are the expression of the amount of the loan granted in
a foreign currency and the repayment of the loan instalments in that currency, while not indicating as a characteristic the
making of the loan payment in a foreign currency. The above shows that there is no clear position of the Supreme Court in
this regard.
As of the end of December 2022, 145 cassation appeals have been filed with the Supreme Court in cases of CHF loans
granted by the Bank, 11 appeals have been accepted by the Supreme Court for examination and are awaiting substantive
decision, as to 12 cassation appeals, the Supreme Court has issued a decision on refusal to accept for examination.
Individual settlements offered by the Bank
Since December 2021, the Bank is involved in individual negotiation processes with its Customers with whom the Bank is
in dispute or about whom there is a reasonable risk of entering into a dispute. The Bank took this parameter into account
when updating the amount of the provision.
As of 31 December 2022, the Bank has made individual settlement proposals to 6,541 Customers and 1,514 Customers
accepted the terms of the proposals presented. This resulted in 1,142 settlement agreements.
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Compliance with laws and regulations
[2-27] [417-2] [417-3] [418-1]
In 2022:
there were no pending court or administrative proceedings against the Bank or Group for violating the freedom of
competition or anti-monopoly regulations,
in terms of non-compliance with regulations and voluntary codes on labelling and information about products and
services, on 5 September 2022, the Bank received a decision from the OCCP (Office of Competition and Consumer
Protection) to initiate proceedings against practices that infringed the collective interests of consumers by restricting
Customers' ability to apply for a suspension of mortgage repayment by limiting in electronic banking one application to 2
months, whereas the Customer should have been able to apply in one form for a suspension of repayment for all periods
provided for in the Act. Despite the Bank raising weighty arguments in its favour, on 17 January 2023 the Bank received a
Decision of the OCCP, in which: the challenged practice was deemed to infringe collective consumer interests; the
practice was found to have been abandoned; the publication of the decision was ordered; a penalty of PLN 2,720,515.50
was imposed on the Bank (reduced by 50% (30% - for stopping the practice, 20% as a result of initiating a meeting and
expressing willingness to cooperate). The Bank does not agree with the decision issued by the OCCP and intends to
undertake appeal actions to challenge the above decision,
in terms of non-compliance with regulations, 6 penalties were imposed on one of the BNP Paribas Leasing Solutions
Group companies for breach of Article 140mb of the Road Traffic Act (notifications of disposal/acquisition of vehicles) for
a total amount of PLN 5,200,
in terms of data regarding the protection of personal data, the Group companies have not received substantiated
complaints regarding leaks, theft or loss of data,
there were no reports of non-compliance with regulations and/or voluntary codes concerning marketing communications
(including advertising, promotion and sponsorship),
there were no fines or non-financial sanctions for non-compliance with laws and/or regulations regarding environmental
protection.
New regulations for the banking sector with a significant influence on the Bank’s performance in 2022
Regulation
Effective date
Description
Act of 7 July 2022 on the
crowdfunding of business
ventures and on assistance for
borrowers
29 July 2022
In addition to regulating crowdfunding, the Act introduces a number of changes
affecting borrowers, as well as amendments to the Act on Trading in Financial
Instruments and the Commercial Companies Code.
The most significant changes from the Bank's point of view include:
Credit moratoria - i.e. the possibility to suspend - at the borrower's request -
the repayment of one mortgage taken out to meet his/her own housing needs,
for a total period of up to 8 months in 2022 and 2023. During the suspension
period, the borrower will only pay the insurance charges associated with this
contract;
changes in Borrower Support Fund - involving, on the one hand,
simplifications for Customers when submitting applications via the bank's ICT
system and, on the other hand, imposing an obligation on banks to make an
additional contribution to the Borrowers' Support Fund in the total amount of
PLN 1.4 billion;
introduction of a procedure for establishing substitutes for key benchmarks,
including in particular the WIBOR index, by means of a regulation of the
Minister of Finance, taking into account the recommendations of the Financial
Stability Committee and the opinion of the PFSA.
Act of 5 August 2022
amending the mortgage loan
act and on oversight over
mortgage loan intermediaries
and agents, and amending the
act on personal income tax,
corporate income tax and
certain other acts
17 September
2022
Pursuant to the amendment, banks will reimburse all additional costs incurred
by borrowers while waiting for a mortgage to be entered into the land and
mortgage register.
The regulations will apply:
to mortgage loan agreements concluded from the effective date of the Act,
to mortgage loan agreements concluded before the Act came into force, if the
mortgage securing the loan was not entered into the land and mortgage
register before the effective date of the Act.
In the case of contracts concluded before the effective date of the Act, the
reimbursement of the additional cost of the mortgage loan or credit towards the
repayment of the mortgage loan takes place within 60 days from the
registration of the mortgage.
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 185
Other regulatory changes affecting the banking sector coming into force in 2022
Regulation of the Prime Minister of 30 December 2021 on payments to cover the costs of bank supervision
Act of 27 January 2022 amending the Act - Code of Civil Procedure
Regulation of the Minister of Finance of 18 February 2022 on the transfer in the form of obligations to pay contributions
to the Bank Guarantee Fund by banks, branches of foreign banks, investment companies, cooperative savings and credit
associations and the National Association of Cooperative Savings and Credit
Regulation of the Minister of Health of 17 March 2022 on loans for medical studies
Regulation of the Minister of Finance of 18 March 2022 amending the Regulation on higher risk weights for exposures
secured by real estate mortgages
Act of 13 April 2022 on special solutions to prevent support for aggression against Ukraine and to protect national
security
Act of 5 August 2022 on the carbon allowance
Act of 6 October 2022 on amending laws to counter usury
Resolution No. 402/2022 of the Polish Financial Supervision Authority of 19 October 2022 on issuing Recommendation A
on banks' risk management related to derivatives activities
Act of 1 December 2022 amending the Act on the processing of complaints by financial market entities and the Financial
Ombudsman and certain other acts
Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational
resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014,
(EU) No 909/2014 and (EU) 2016/1011
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 186
Grażyna Juszczyk, Lead IT Analyst
Corporate governance
Statement of the Management Board of compliance with corporate governance principles
Compliance with corporate governance principles in 2022 187
Shares and shareholders 189
Statutory bodies of the Bank 190
Remuneration of the Management Board and Supervisory Board 204
Diversity policy 206
System of control and risk management in the process of financial statements
preparation 207
Information on certified auditor 208
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 187
Compliance with corporate governance principles in 2022
Legal and regulatory bases of corporate governance
The corporate governance in force at BNP Paribas Bank Polska S.A. results from
legal acts (in particular the Code of Commercial Companies, the Banking Law
and regulations governing the functioning of the capital market) and the
recommendations contained in the following documents: "Best Practice for WSE
Listed Companies", "Principles of Corporate Governance for Supervised
Institutions".
Pursuant to § 70 sec. 6 point 5) of the Regulation of the Minister of Finance of 29
March 2018 on current and periodic information published by issuers of
securities and conditions for recognizing as equivalent information required by
the laws of a non-member state (consolidated text: Journal of Laws of 2018, item
757), the Management Board of BNP Paribas Bank Polska S.A. presents the
following information regarding compliance with corporate governance
principles in 2022.
The binding set of corporate governance principles to which the
Bank was subject
Principles of corporate governance for supervised institutions
The Bank is subject to the "Principles of Corporate Governance for Supervised
Institutions" issued by the Polish Financial Supervision Authority on 22 July 2014.
This document defines the internal and external relations of supervised
institutions, including relations with shareholders and Clients, their organization,
the functioning of internal supervision and key internal systems and functions,
the functioning of statutory bodies and the principles of their cooperation. These
rules are available on the website of the Polish Financial Supervision Authority
at:
https://www.knf.gov.pl/dla_rynku/regulacje_i_praktyka/zasady_ladu_korporacyjn
ego.
The principles of corporate governance for supervised institutions were adopted
by the Bank's Management Board and the Supervisory Board in December 2014
and the General Meeting in February 2015.
The Bank's position on the application of Principles of Corporate Governance for
Supervised Institutions was updated in 2022 and expressed in the Resolution of
the Bank's Management Board of 17 February 2022, then confirmed by the
Supervisory Board on 2 March 2022 and adopted by the General Shareholders
Meeting on 22 June 2022. It is published on the Bank's website:
https://www.bnpparibas.pl/relacje-inwestorskie/lad-korporacyjny/zasady-ladu-
korporacyjnego-knf.
BNP Paribas Bank Polska S.A. declares that it has adopted and complies with all
the "Principles of Corporate Governance for Supervised Institutions" issued by
the Polish Financial Supervision Authority.
The Bank's annual statement on the compliance with Principles of Corporate
Governance for Supervised Institutions is also included in the Reports on the
activities of the Supervisory Board together with the assessments indicated in
principle 2.11 of the Best Practice for WSE Listed Companies 2021 and the
assessment of the Bank's Compliance with the Principles of Corporate
Governance for Supervised Institutions of 22 July 2014, issued by the Polish
Financial Supervision Authority.
Best Practice for WSE Listed Companies
As of 1 July 2021, new corporate governance rules came into force: "Best Practice
for WSE Listed Companies 2021" ("Best Practices", "DPSN 2021"), adopted by the
Exchange Supervisory Board by Resolution No. 13/1834/2021 of 29 March 2021,
replaced the set of "Best Practices of WSE Listed Companies 2016".
The content of the Best Practice for WSE Listed Companies 2021 is available on
the WSE website at the following link: https://www.gpw.pl/dobre-praktyki.
By Resolution 49/BZ/42/2021 of 30 July 2021, the Management Board of the Bank
adopted a set of principles entitled "Best Practice for WSE Listed Companies
2021". Subsequently, the Extraordinary General Meeting of the Bank adopted the
principles contained in the document "Best Practices of WSE Listed Companies
2021" by Resolution No. 3 of 4 January 2022.
Information on the application of the "Code of Best Practice for WSE Listed
Companies", including all EBI reports, is available on the Bank's Investor
Relations website (https://www.bnpparibas.pl/relacje-inwestorskie/lad-
korporacyjny/dobre-praktyki-spolek-notowanych-na-gpw).
The status of application of the "Best Practices of WSE Listed Companies 2021"
at the Bank is subject to constant verification. As at the date of publication of this
Report, the Bank applied all the rules set out in the Best Practice for WSE Listed
Companies 2021, with the exception of rule 2.1.
Principle 2.1.: "The company should have a diversity policy towards the
management board and the supervisory board, adopted by the supervisory
board or the general meeting, respectively. The diversity policy defines the
objectives and criteria of diversity in areas such as gender, field of education,
specialist knowledge, age and professional experience, as well as indicates the
date and method of monitoring the achievement of these goals. In terms of
gender diversity, the diversity of boards shall ensure that the minority share of
the board is not lower than 30%."
The Bank has a diversity policy, which formally forms part of the policy of
assessing the suitability of members of the Supervisory Board of BNP Paribas
Bank Polska S.A. and, in the case of members of the Management Board, is part
of the policy of assessing the suitability of members of the Management Board
and persons performing key functions in BNP Paribas Bank Polska S.A.
The use of criteria ensuring diversity in the Bank's bodies is a legally binding
requirement resulting from specific legal regulations and EBA (European Banking
Authority) Guidelines applicable to banks. The Bank is an entity regulated and
supervised by the Polish Financial Supervision Authority. The correctness and
quality of the application of the diversity policy is monitored, among others, as
part of the verification by the PFSA of individual and collective suitability
assessments. When selecting persons for the Company's governing bodies and
key functions, the Bank takes into account, amongst others the criteria of
reputation, honesty and ethics, devoting sufficient time, lack of conflict of
interest, independence of judgement and knowledge, skills and experience of
candidates.
In its suitability assessment policy, the Bank ensured the promotion of diversity
in the Management Board, the Supervisory Board and, in the case of the most
important functions, from the moment of constructing a diverse pool of
candidates, in order to reach a wide range of characteristics and competences of
Members of the Management Board and the Supervisory Board and to gain
different points of view and experience and to enable independent opinions and
reasonable decisions to be issued by the Company's governing bodies. Diversity
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 188
is ensured by the Bank through Inclusion in the processes of appointing and
assessing the suitability such criteria as: gender, education and professional
experience, specialist knowledge, age, geographical origin.
The Bank attaches great importance to the real implementation of diversity,
including ensuring the appropriate participation of women in the Bank's bodies.
The Bank has made a strategic decision, reflected in its diversity policy, that by
2025 it will ensure the share of 30% of women on the Bank's Management Board
and ensure that the share of women on the Supervisory Board will not be lower
than 30%.
At the end of 2022, the share of women in the Supervisory Board was 41.7% and
in the Bank's Management Board 22.2% respectively.
Compliance with the principle of diversity is monitored not only at the level of
the Bank's governing bodies, but also at the level of managerial positions. At the
end of 2022, the share of women in top management positions other than the
Management Board (Managing Director, Executive Director, Tribe Leader) was
37%.
Due to the fact that as of the date of publication of this report on the application
Best Practice of WSE, the share of women in the Bank's Management Board has
not reached the target level of 30%, the Bank prudently reports that it does not
apply the above principle.
In the case of several principles that concerned repetitive processes, and which,
according to the information presented for 2021, were not implemented earlier,
the Bank declares their application. The activities necessary to ensure
compliance were carried out in 2022. This applies in particular to the following
principles:
Principle 1.4.: "In order to ensure proper communication with stakeholders
within the scope of the adopted business strategy, the company publishes on
its website information on the principles of its strategy, measurable goals,
including in particular: long-term goals, planned activities and progress in
their implementation, determined by financial and non-financial measures.
Information on ESG strategies should amongst others:
Principle 1.4.2: "present the value of the equal pay index paid to its employees,
calculated as a percentage difference between the average monthly salary
(including bonuses, awards and other allowances) of women and men for the
last year, and provide information on the actions taken to eliminate possible
inequalities in this area, together with a presentation of the risks associated
with it and the time horizon in which equality is planned to be achieved".
By implementing best market practices in 2020, BNP Paribas Bank Polska S.A.
measured the wage gap for the first time. After analysing the results, systemic
and dedicated actions and recommendations were taken to reduce the level of
the pay gap, including the annual remuneration review process. The Equal
Remuneration Index is measured according to the Bank's internal methodology,
which takes into account total remuneration based on homogeneous groups of
employees (created taking into account the area of employment and grade).
The level of the ratio is provided in the annual report of the Bank's Group and
on the Bank's website describing the CSR and sustainable development
strategy. The Bank takes into account the assumed reduction of the GPGR index
in the Bank's strategy published in the first quarter of 2022.
Rule 2.11.: "In addition to the activities resulting from the law, once a year the
supervisory board prepares a report and presents it to the annual general
meeting for approval. The report referred to above shall include at least:
Rule 2.11.1.: "information on the composition of the board and its committees,
indicating which of the board members meet the independence criteria set out
in the Act of 11 May 2017 on statutory auditors, audit firms and public
supervision, and which of them do not have real and significant relations with
a shareholder holding at least 5% of the total number of votes in the company,
as well as information on the composition of the supervisory board in terms of
its diversity;"
Rule 2.11.4.: "assessment of the company's application of corporate governance
principles and the manner of fulfilling the disclosure obligations regarding
their application specified in the Exchange Rules and regulations on current
and periodic information published by issuers of securities, together with
information on the actions taken by the supervisory board to make this
assessment;"
Principle 2.11.5: "assessment of the justification of the expenditure referred to
in the Principle 1.5" (expenditure incurred on sponsorship and charity);
Principle 2.11.6.: "information on the degree of implementation of the diversity
policy in relation to the management board and supervisory board, including
the achievement of the objectives referred to in principle 2.1."
The above principles are applied and reflected in the Annual Report on the
activities of the Supervisory Board for 2021 and approved by the Ordinary
General Meeting of Shareholders in 2022.
After the adoption of DPSN 2021 by the EGM of BNP Paribas Bank Polska S.A. on
4 January 2022 (resolution no. 3), the Bank also reports compliance with the
following Principles, to which until 4 January 2022 for formal reasons (no
possibility of earlier adoption of DPSN 2021 for application by the AGM), the
Bank reported the lack of application:
Rule 4.8.: "Draft resolutions of the general meeting on matters introduced into
the agenda of the general meeting should be submitted by shareholders no
later than 3 days before the general meeting."
Rule 4.9.1.: "candidacies for board members should be submitted in time to
allow shareholders present at the general meeting to make decisions with due
consideration, but not later than 3 days before the general meeting;
Applications, together with a set of materials concerning them, should be
immediately published on the company's website;".
The Management Board of the Bank declares that in 2022 the Bank and its
bodies complied with the principles of corporate governance specified in the
"Best Practice for WSE Listed Companies" to the extent reported by the Bank. In
the period covered by this report, no cases of violation of the Corporate
Governance Principles reported by the Bank were found.
The Management Board of the Bank declares that in 2022 the Bank
and its bodies complied with the corporate governance principles set
out in the "Principles of corporate governance for supervised
institutions" and specified in the "Best Practices of WSE Listed
Companies" to the extent adopted and reported by the Bank.
In the period covered by this report, no cases of violation of the
Corporate Governance Principles reported by the Bank were found.
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 189
Shares and shareholders
Shareholder structure
The table below presents the Bank's shareholding structure as of 31 December
2022, specifying shareholders who held at least 5% of the total number of votes
at the General Meeting
Table 107. Shareholder structure
Shareholder
Number of
shares
% interest in
share capital
Number of
votes at the
General
Shareholders’
Meeting
% Share in the
number of
votes at the
General
Shareholders’
Meeting
BNP Paribas, in
total:
128,991,553
87.40%
128,991,553
87.40%
BNP Paribas
directly
93,501,327
63.35%
93,501,327
63.35%
BNP Paribas
Fortis SA/NV
directly
35,490,226
24.05%
35,490,226
24.05%
Other shareholders
18,601,597
12.60%
18,601,597
12.60%
Total
147,593,150
100.00%
147,593,150
100.00%
As of 4 April 2022, the Bank's share capital amounts to PLN 147,593 thousand.
The capital consists of 147,593,150 shares with a nominal value of PLN 1 each,
including
series A – 15,088,100 shares,
series B – 7,807,300 shares,
series C – 247,329 shares,
series D – 3,220,932 shares,
series E – 10,640,643 shares,
series F – 6,132,460 shares,
series G – 8,000,000 shares,
series H – 5,002,000 shares,
series I – 28,099,554 shares,
series J – 2,500,000 shares,
series K – 10,800,000 shares,
series L – 49,880,600 shares,
series M – 174,232 shares.
Four B series shares are preference shares. This privilege includes the right to
obtain payment of the full nominal amount per share in the event of liquidation
of the Bank after satisfaction of creditors, in the first place - before the payments
attributable to ordinary shares, which due to the exercise of the preference may
not cover the nominal sum of the shares.
The total number of votes resulting from all shares of the Bank is 147,593,150
votes. The number of votes resulting from series M shares allotted in 2022 is
74,368 votes, and the total number of votes resulting from the series M shares
allotted is 174,232 votes.
The value of conditional share capital increase after the issue of series M shares
is PLN 401,768
Changes in the shareholding structure in 2022
On 4 April 2022, the Bank's share capital was increased from PLN 147,518,782 to
PLN 147,593,150 as a result of taking up 74,368 series M shares in exercise of
rights attached to previously acquired registered A2 series subscription warrants.
BNP Paribas investor commitment on Bank's share liquidity
According to the commitment made by BNP Paribas SA – the main shareholder
of the Bank – to the Polish Financial Supervision Authority, submitted on 14
September 2018, the number of the Bank's shares in free float should be
increased to at least 25% plus one share by the end of 2023 at the latest.
Bank's shares owned by members of the Management Board and
members of the Supervisory Board
A summary of the Bank's shares and rights to shares by the members of the
Bank's Management Board and Supervisory Board as of the date of submitting
the report for Q3 2022 (10 November 2022) and the report for 2022 (1 March
2023) is presented below.
The ownership of the Bank's shares and rights to shares by individual members
of the Management Board has not changed since the date of publication of the
previous report, i.e. 10 November 2022.
Table 108. Number of shares/subscription warrants held by members of the
Bank’s Management Board
Bank’s Management
Board member
shares
1
10.11.2022
subscription
warrants
2
10.11.2022
shares
1
1.03.2023
subscription
warrants
2
1.03.2023
Przemysław Gdański
17,137
9,336
17,137
9,336
Jean-Charles Aranda
2,338
3,002
2,338
3,002
André Boulanger
3,129
7,081
3,129
7,081
Przemysław Furlepa
2,722
4,076
2,722
4,076
Wojciech Kembłowski
3,195
4,050
3,195
4,050
Kazimierz Łabno
1,862
2,285
1,862
2,285
Magdalena Nowicka
0
2,046
0
2,046
Volodymyr Radin
895
1,230
895
1,230
Agnieszka Wolska
0
614
0
614
1) series M shares subscribed on 4.04.2022 in the exercise of rights attached to A2 series warrants (subscription warrants of
registered A2 series subscription warrants took place on 25.03.2021; one warrant entitled to subscribe for one ordinary bearer series
M share of BNP Paribas Bank Polka S.A., at the issue price of PLN 1.00 per share); in the case of Mr. Przemysław Gdański, the number
of series M shares subscribed for in exercise of the rights arising from the A2 series warrants was 9,148, the number of series M
shares acquired in exercise of the rights arising from the A1 series warrants was 7,489, the number of shares purchased on the WSE
stock market was 500.
2) series A3 subscription warrants subscribed on 25/03/2022 - one A3 series warrant entitles to subscribe for one ordinary bearer
series M share of BNP Paribas Bank Polska S.A., at the issue price of PLN 1.00 per share
Members of the Bank's Supervisory Board did not declare their holding of
shares/rights to the Bank's shares as of 31 December 2022 and as of the date of
publication of this report, i.e. 1 March 2023, which has not changed since the
date of submitting the report for Q3 2022, i.e. 10 November 2022.
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Statutory bodies of the Bank
General Shareholders’ Meeting
[2-15]
Procedures of the General Shareholders’ Meeting and its key
powers
The procedures of the General Shareholders’ Meeting and its key powers are
specified in the generally applicable regulations of the Code of Commercial
Companies and the Banking Law, as well as the Bank's internal documents - the
Bank's Statute and the Regulations of the General Meeting of BNP Paribas Bank
Polska S.A., taking into account the "Best Practice for WSE Listed Companies" and
the "Principles of corporate governance for supervised institutions". The above
corporate documents are available on the Bank's website:
https://www.bnpparibas.pl/relacje-inwestorskie/lad-korporacyjny/dokumenty-
banku
General Meetings of Shareholders are held as ordinary and extraordinary. The
Annual General Meeting is held once a year, no later than within 6 months after
the end of each financial year. The Extraordinary General Meeting is convened, if
necessary, by the Management Board of the Bank on its own initiative or at the
request of the Supervisory Board, or at the request of a shareholder or
shareholders representing jointly at least 5% of the share capital.
The General Meeting makes decisions on matters which, in accordance with the
law and internal regulations of the Bank, are reserved to the competence of the
General Meeting. In particular, the subject of the General Meeting is:
consideration and approval of the Management Board's Report on the Bank's
activities and the financial statements for the previous financial year,
consideration and approval of the Management Board's report on the banking
activities of the Group and the consolidated financial statements of the
banking Group for the previous financial year,
adoption of a resolution on the distribution of profit or coverage of loss,
granting a vote of approval to the members of the Bank's governing bodies for
the performance of their duties,
amending the Bank's Statute,
appointment and dismissal of members of the Supervisory Board - one of the
criteria for assessing suitability is the verification of a possible conflict of
interest. The General Shareholders’ Meeting receives a report with a summary
of the assessment, which includes the necessary information on the results of
the suitability assessment, including information on conflicts of interest. The
document is available to the public,
determining the principles of remuneration and remuneration of members of
the Supervisory Board,
increasing or decreasing the Bank's share capital,
issuing convertible bonds and bonds with pre-emptive rights to subscribe for
the Bank's shares, as well as subscription warrants,
redemption of shares and determination of detailed conditions for such
redemption,
merger or liquidation of the Bank, selection of liquidators and manner of
liquidation.
The Company convenes the General Meeting by means of an announcement
published on the website of Bank https://www.bnpparibas.pl/relacje-
inwestorskie/walne-zgromadzenie - at least 26 days before the date of the
General Meeting. Together with the Announcement on convening the General
Meeting, draft resolutions (reviewed by the Supervisory Board), justifications for
resolutions and other materials submitted to the General Meeting are made
available on the Bank's website. The dates on which the above materials are
made public allow the participants of the General Meeting to familiarize
themselves with them in detail.
The Bank enables shareholders to participate in the General Meeting using
electronic means of communication, providing real-time two-way broadcast
(enabling shareholders to speak during the General Meeting) and exercising
their voting rights during the General Meeting in person or by proxy. Detailed
rules for participation in the General Meeting by means of electronic
communication are specified in the "Rules of Participation in the General
Meeting of BNP Paribas Bank Polska SA via Electronic Communication".
Voting takes place using an electronic system of casting and counting votes,
which ensures that votes are cast in the amount corresponding to the number of
shares held. Each share gives the right to one vote. In the case of secret voting,
the system ensures the confidentiality of information. The voting right shall be
exercised by the shareholders in person or by proxy.
The Bank also enables the participation of media representatives in the General
Meeting.
The proceedings of the General Meeting are broadcast in real time via the
Internet, and the recording of the broadcast is published on the Bank's website
in the tab dedicated to a given General Meeting. Information on the planned
transmission of the General Meeting is announced at the time of publication of
the Announcement on convening the General Meeting.
General Shareholders’ Meetings held in 2022 r.
4 January 2022 - the Extraordinary General Shareholders’ Meeting of the Bank
(hereinafter: EGM), which, apart from resolutions of an order nature, adopted:
the principles contained in the "Best Practice for WSE Listed Companies 2021"
to be applied by the Bank,
Policy of appointing and dismissing members of the Supervisory Board of BNP
Paribas Bank Polska S.A.,
updated Policy for the assessment of adequacy of members of the Supervisory
Board of BNP Paribas Bank Polska S.A.,
amendments to the Remuneration Policy for Members of the Supervisory Board
and the Policy for Remuneration of Persons Who Have a Significant Impact on
the Risk Profile (including Members of the Bank's Management Board),
amendments to the Banks Statute and the Regulations of the Bank's General
Meeting, adapting documents to the current provisions of the Banking Law and
the rules resulting from the "Best Practice for WSE Listed Companies 2021".
27 June 2022 - the Annual General Meeting of the Bank (hereinafter: AGM),
which, apart from resolutions of an order nature:
approved the statements and annual reports submitted by the Management
Board and the Supervisory Board, as required by law. Amongst others: Financial
statements, Report on the Bank's activities and ESG report presenting non-
financial information for 2021,
resolved to distribute the profit for 2021 (decided to transfer the entire net
profit of PLN 184.52 million to reserve capital),
granted a vote of approval to the members of the Management Board and the
Supervisory Board for the performance of their duties in 2021,
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adopted a periodic assessment of the individual and collective adequacy of the
members of the Supervisory Board and the assessment of the adequacy of the
Bank's internal regulations concerning the functioning of the Supervisory Board
and its effectiveness,
adopted an independent assessment of the application of the remuneration
policy at BNP Paribas Bank Polska S.A. in 2021 submitted by the Supervisory
Board and the report on the remuneration of members of the Supervisory
Board and members of the Management Board of BNP Paribas Bank Polska S.A.
in 2021,
adopted a resolution on determining the remuneration of members of the
Supervisory Board,
adopted resolutions on the continuation of the incentive program
(implemented in 2020), based on the Bank's own shares, to be granted to
persons having a significant impact on the Bank's risk profile as a component
of variable remuneration. As part of the continuation of the above-mentioned
incentive program, a new issue of series N shares was planned,
accepted information on the Bank's compliance with the "Principles of
Corporate Governance for Supervised Institutions" issued by the Polish
Financial Supervision Authority.
Essential rights of shareholders and the method of their execution
The rights of shareholders are defined in the Regulations of the Bank's General
result from the provisions of the Code of Commercial Companies. Here are the
most important rights of shareholders:
a shareholder has the right to participate in the profit shown in the financial
statements, audited by a certified auditor, which was allocated by the General
Meeting for distribution to shareholders,
a shareholder has the right to participate in the General Meeting and exercise
the right to vote in person or through proxies,
a shareholder may participate in the General Meeting using electronic means
of communication (may speak during the General Meeting and exercise the
right to vote during the General Meeting in person or by proxy). Detailed rules
for participation in the Bank's General Meeting by means of electronic
communication are set out in „ Rules of Participation in the General Meeting of
BNP Paribas Bank Polska S.A. via Electronic Communication”,
a shareholder or shareholders representing jointly at least 5% of the Bank's
share capital may request that an Extraordinary General Meeting be convened
as well as that specific matters be placed on the agenda of the General
Meeting,
shareholders representing at least half of the Bank's share capital or at least
half of the total number of votes in the Bank may convene an Extraordinary
General Meeting. The shareholders shall appoint the chairman of the meeting,
a shareholder has access to the list of shareholders. may view the list of
shareholders at the Bank's registered office, request a copy of the list or
request that the list of shareholders be sent to it by e-mail,
the shareholder has the right to receive copies of motions on matters included
in the agenda of the General Meeting within one week before the date of the
General Meeting and request that the Management Board of the Bank provide
information on matters included in the agenda of the General Meeting, subject
to exceptions specified the Code of Commercial Companies,
a shareholder has the right to view the books of minutes of the General
Meeting and request copies of resolutions certified by the Bank's Management
Board,
a shareholder has the right to request a secret voting,
a shareholder has the right to object to the adopted resolution and appeal
against resolutions of the General Meeting in cases and subject to exceptions
specified in the Code of Commercial Companies (action to repeal a resolution
or an action to declare a resolution invalid),
a shareholder has the right to ask questions and request the Management
Board to provide information on matters included in the agenda of the General
Meeting in the cases and subject to exceptions specified in the Code of
Commercial Companies.
Procedure for amending the Bank's Statute
Each amendment to the Bank's Statute requires a resolution of the General
Meeting and entry in the register of entrepreneurs of the National Court Register.
The amendment to the Statute also requires the permission of the Polish
Financial Supervision Authority, which is referred to in "Article 34 paragraph 2 of
the Act of 29 August 1997 – Banking Law (consolidated text: Journal of Laws of
2016, item 1988)". Motions of the Bank's Management Board regarding
amendments to the Bank's Statute, as well as other matters submitted by the
Bank's Management Board for consideration by the General Shareholders’
Meeting, should be previously reviewed by the Bank's Supervisory Board.
Regarding amendments to the Statute, including in particular changes to the
Bank's name, registered office, business profile (referred to in § 5 section 2 of the
Bank's Statute), increase or decrease of the Bank's share capital, issue of
convertible bonds and bonds with priority rights to acquire the Bank's shares, as
well as subscription warrants, as well as liquidation or dissolution of the Bank,
sale of all or part of a banking enterprise - resolutions of the General
Shareholders’ Meeting are adopted by a majority of 3/4 votes cast. A resolution
on the merger of the Bank with another bank or credit institution requires a
resolution of the General Shareholders’ Meeting adopted by a majority of 2/3 of
votes (§ 13 section 2 of the Bank's Statute).
In accordance with § 20 par. 1, point 1m) of the Bank's Statute, immediately
after the General Shareholders’ Meeting adopts resolutions introducing
amendments to the Bank's Statute, the Supervisory Board shall determine the
consolidated text of the Statute and shall be responsible for introducing other
editorial changes specified in resolutions of the General Meeting.
Amendments to the Bank's Statute in 2022
1. Pursuant to Resolution No. 7 of the Extraordinary General Meeting of 4
January 2022, the following changes were made to the Bank's Statute:
§ 6a The current text shall be marked as section 1 and a new section 2 shall
be added as follows:
"The Bank may provide to companies related to the Bank or the parent
company of the Bank services related to the use of the Bank's IT systems,
infrastructure and technologies, including data processing services, ICT
security services, information processing security services, maintenance
software and IT infrastructure services and consulting services in this
respect."
§ 20 section 1 point 1) (b) shall be replaced by the following:
"appointing and dismissing members of the Bank's Management Board and
approving the internal division of responsibilities among members of the
Management Board,"
§ 21 sec. 1 shall be replaced by the following:
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"The Bank's Board of Directors consists of four to nine members. The
members of the Management Board shall be appointed for a joint term of
three years."
§ 21 sec. 3 shall be replaced by the following:
"Members of the Management Board should have knowledge, skills and
experience appropriate to their functions and duties and provide assurance
that these duties are properly performed."
§ 26 sec. 1 and 2 shall be replaced by the following:
'1. Declarations of will on behalf of the Bank shall be made by:
1) two members of the Management Board acting jointly or one member of
the Management Board together with a proxy or proxy acting within the
limits of the granted power of attorney,
2) two proxies acting jointly,
3) proxies acting alone or jointly within the limits of the powers of attorney
granted.
2. A joint proxy shall be granted at the Bank, authorizing to act jointly with
another proxy or a member of the Management Board."
§ 33 sec. 1 point 5) shall be replaced by the following:
"Circular letters from executive directors, managing directors of the Bank and
other persons holding positions equivalent to managing directors,"
§ 33 sec. 1 point 9) shall be replaced by the following:
„Internal regulations of the areas (in the case of such a decision is made by
the President of the Management Board, if the area is managed by the
Executive Director) divisions/ other organizational forms equivalent to the
divisions/basic organizational units of the Bank's Head Office issued by
supervising members of the Management Board/executive directors."
§ 33 sec. 2 point 5) shall be replaced by the following:
"executive directors, managing directors and other persons holding positions
equivalent to the managing directors of the Bank and the director of the
Brokerage House – in relation to subordinate units, organizational units or
other organizational forms, including issuing specimen forms and forms and
official instructions,"
2. Pursuant to Resolution No. 39 of the Ordinary General Meeting of 27 June
2022, the Bank's Statute was amended as follows:
after § 29a of the Bank's Statute, a new § 29b shall be added as follows:
a. "1. Pursuant to "Resolution No. 39 of the Ordinary General Shareholders’
Meeting of the Bank of 27 June 2022 on the issue of subscription warrants,
conditional share capital increase through the issue of series N shares,
depriving the existing shareholders of the right to acquire subscription
warrants and the right to acquire series N shares, amending the Statute
and applying for admission of series N shares to trading on the regulated
market", the Bank's share capital was conditionally increased by no more
than PLN 1,200,000 (one million two hundred thousand) by way of issue of
no more than 1,200,000 (one million two hundred thousand) ordinary
bearer N series shares.
2. The persons entitled to obtain the N series shares are holders of subscription
warrants series B1, B2, B3, B4, B5, B6, B7, B8 issued by the Bank on the basis of
the Resolution referred to in clause 1 above. The rights to obtain N series shares
resulting from these warrants may be exercised on the following dates:
a) rights resulting from B1 Series Warrants – in the period from 31 March 2024
to 30 September 2024,
b) rights resulting from B2 Series Warrants – in the period from 31 March 2025
to 30 September 2025,
c) rights resulting from B3 Series Warrants – in the period from 31 March 2026
to 30 September 2026,
d) rights resulting from B4 Series Warrants – in the period from 31 March 2027
to 30 September 2027,
e) rights resulting from B5 Series Warrants – in the period from 31 March 2028
to 30 September 2028,
f) rights resulting from B6 Series Warrants – in the period from 31 March 2029
to 30 September 2029,
g) rights resulting from B7 Series Warrants – in the period from 31 March 2030
to 30 September 2030,
h) rights resulting from B8 series Warrants – in the period from 31 March 2031
to 30 September 2031."
Supervisory Board
[2-9]
Principles of operation of the Supervisory Board
The Supervisory Board of BNP Paribas Bank Polska S.A. operates on the basis of
the regulations of the Banking Law, the Code of Commercial Companies, the
Bank's Statute and the Rules of the Supervisory Board. The content of the Statute
and the Regulations can be found on the Bank's website:
https://www.bnpparibas.pl/relacje-inwestorskie/lad-korporacyjny/dokumenty-
banku.
The Supervisory Board is appointed by the General Shareholders’ Meeting for a
joint five-year term. The Supervisory Board consists of 12 members. At least half
of the members of the Supervisory Board have in-depth knowledge of the
banking market in Poland, i.e. they speak Polish and have relevant experience on
the Polish market. The mandates of members of the Supervisory Board expire
after the end of the term of office on the date of the General Meeting approving
the financial statements for the last full year of their function. The mandate of a
member of the Supervisory Board appointed before the end of a given term of
office of the Supervisory Board expires simultaneously with the expiry of the
mandates of the other members of the Supervisory Board. The mandate of a
member of the Supervisory Board also expires as a result of death, resignation or
dismissal.
The Supervisory Board exercises permanent supervision over the Bank's
operations in all aspects of its operations. In particular, it evaluates the
Management Board's Reports on the activities of the Bank and the Bank's Capital
Group as well as the Financial Statements of the Bank and the Bank's Capital
Group for the previous financial year. It checks whether they are consistent with
the books, documents and facts. It evaluates the Management Board's proposals
concerning the distribution of profit or coverage of loss. At the same time, it
supervises the implementation of the internal control system and assesses its
adequacy and effectiveness.
[2-14]
The Supervisory Board prepares and presents to the Annual General
Shareholders’ Meeting an annual report on its activities, including also a
summary of the activities of the Supervisory Board Committees. In addition, the
Supervisory Board presents to the General Meeting a report on the results of the
assessment of the audit of the financial statements (separate and consolidated,
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 193
including the Management Board's motion regarding the distribution of profit),
the Management Board's report on the activities of the Group and the
assessment of the ESG report presenting non-financial information. The
Supervisory Board, in addition to assessing the adequacy and effectiveness of the
internal control system, simultaneously evaluates the risk management system,
compliance assurance and the internal audit function. It also evaluates the
application of corporate governance principles, the functioning of the
remuneration policy and adequacy policy regarding the election of members of
the Management Board or the Supervisory Board and the rationality of the
sponsorship and charity policy.
Resolutions of the Supervisory Board are effectively adopted if all members of
the Supervisory Board have been notified of the meeting and at least half of the
members of the Supervisory Board, including its chairman or vice-chairman, are
present at the meeting. Resolutions of the Supervisory Board are adopted by a
simple majority of votes in an open vote. At the request of a member of the
Supervisory Board, the Chairman of the Supervisory Board shall be ordered by
secret voting. The Supervisory Board may also adopt resolutions in writing,
without convening a meeting or using means of direct remote communication, in
particular by the means of the telephone, audio-visual or electronic
communication.
The Bank's Statute (§ 16 sect. 4) stipulates that at least two members of the
Supervisory Board should meet the independence criteria. Independent members
of the Supervisory Board should not be related to the Bank, the Bank's
shareholders or employees in a way that could materially affect or give rise to a
reasonable suspicion that it affects the ability of an independent member of the
Supervisory Board to make impartial decisions.
As of 31 December 2022, five members of the Supervisory Board met these
criteria: Lucyna Stańczak-Wuczyńska, Jarosław Bauc, Małgorzata Chruściak,
Magdalena Dziewguć and Mariusz Warych.
Table 109. Composition of the Supervisory Board as of 31.12.2022 with information on the independence of members
Supervisory Board Committee
No
Name and Surname
Office held in the Supervisory Board
Audit Committee
Risk Committee
Remuneration Committee
Nominations Committee
1.
Lucyna Stańczak-Wuczyńska
Chairperson
Independent member
Member
Member
Member
Member
2.
Jean-Paul Sabet
Vice-Chairman
Chairperson
Chairperson
3.
Francois Benaroya
Vice-Chairman
Member
Chairperson
Member
Member
4.
Małgorzata Chruściak
Independent member
Member
5.
Géraldine Conti
Member
Member
Member
6.
Jarosław Bauc
Independent member
Member
7.
Stefaan Decraene
Member
8.
Magdalena Dziewguć
Independent member
9.
Vincent Metz
Member
10.
Piotr Mietkowski
Member
11.
Khatleen Pauwels
Member
12.
Mariusz Warych
Independent member
Chairperson
Member
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Changes in the composition of the Bank's Supervisory Board in the period 1
January – 31 December 2022:
On November 14, 2022, Mr. Stefaan Decraene resigned from the position of a
member of the Supervisory Board effective from December 31, 2022.
The Extraordinary General Meeting of the Bank on 17 January 2023 appointed Mr
Grégory Raison as a member of the Bank's Supervisory Board, effective 17
January 2023 until the end of the current five-year joint term of office of the
members of the Supervisory Board
[2-12]
In 2022, the members of the Bank's Supervisory Board devoted an appropriate
amount of time to perform their duties. The Bank's Supervisory Board held 19
meetings in 2022, including 14 conducted in written form. The Board adopted 75
resolutions. The attendance of the Board members in the meetings was 89%.
In 2022, the Supervisory Board fulfilled its duties resulting from the regulations
of law and the Bank's Statute. These obligations are specified in the "Framework
Work Plan of the Supervisory Board and Committees operating at the
Supervisory Board for 2022". Moreover, the Supervisory Board received current
information on the most important events and decisions of the Management
Board, thanks to which it had adequate knowledge of the Bank's position,
macroeconomic situation and market environment. This way, it was able to
assess how these factors influenced the achievement of the assumed results and
the Bank's development plans. In 2022, the Supervisory Board adopted amongst
others the Strategy of the Bank and the BNP Paribas Bank Polska S.A. Capital
Group for 2022-2025.
Table 110. Individual Board member activity in 2022
Lucyna
Stańczak-
Wuczyńska
Francois
Benaroya
Jean-Paul
Sabet
Jarosław
Bauc
Małgorzata
Chruściak
Géraldine
Conti
18/19
19/19
18/19
14/19
16/19
18/19
Stefaan
Decraene
Magdalena
Dziewguć
Vincent
Metz
Piotr
Mietkowski
Khatleen
Pauwels
Mariusz
Warych
15/19
10/19
19/19
17/19
18/19
19/19
* attendance at meetings / number of meetings
Members of the Supervisory Board
[2-11] [2-17]
In accordance with the Bank's Policy on assessing the adequacy of members of
the Supervisory Board of BNP Paribas Bank Polska S.A., developed on the basis of
the guidelines of the European Banking Authority of 21 March 2018. on the
assessment of suitability of members of the management body and persons
performing the most important functions (EBA/GL/2017/12) and the Methodology
of the Polish Financial Supervision Authority for assessing the suitability of
members of the bodies of supervised entities, (published on 27 January 2020) as
well as the Banking Law and other legal acts regulating the above-mentioned
issues, members of the Supervisory Board are subject to an individual
assessment of appropriateness (primary and periodic) and collective adequacy
assessment as The Supervisory Board as a whole.
Assessment of individual and collective adequacy is carried out at least once a
year and in situations indicated in the Bank's Policy, amongst others in the case
of nominating candidates for members of the Supervisory Board (before
appointing a given person to perform the function), in the event of a change in
the composition of the Supervisory Board or a significant change in the Bank's
business model. The Nominations Committee conducts an individual and
collective assessment of the adequacy of the Supervisory Board, and the results
of the appropriateness assessment are presented by the Supervisory Board to
the General Shareholders’ Meeting.
Members of the Supervisory Board have diverse expert knowledge, a high level
of qualifications, competences, and professional experience. They ensure an
appropriate level of collective supervision over all areas of the Bank's operations
and guarantee a broad and comprehensive representation of views on the
evaluation of the work of the Bank's Management Board and the functioning of
the Bank. The chair of the Supervisory Board is not a member of the
management team.
1. Lucyna Stańczak-Wuczyńska – Chairperson of the Supervisory Board
(independent member)
A graduate of Economics at the Warsaw School of Economics, Faculty of Finance
and Statistics and post-graduate Advanced European Studies at the College of
Europe in Bruges, Belgium. Since the beginning of her nearly 30- year
professional career, Ms Lucyna Stańczak-Wuczyńska has been involved in
banking. In 1992-1995 she worked at IBP Bank S.A. in corporate banking, then in
1995-1997 in Credit Lyonnais Bank Polska, in corporate finance. In 1997 she
became Vice President of the Structured Finance Department at ABN Amro Bank
Polska. Between 2000-2020 she has been associated with the European Bank for
Reconstruction and Development ("EBRD"), initially as a Senior Banker
responsible for investments in the energy and infrastructure sector, and since
2008 as EBRD Country Director in Poland. Since 2014, she has been Regional
Director of EU-Banks, Financial Institution, Central and Southern Europe region .
with a portfolio of equity and debt investments in banks and financial
institutions exceeding EUR 4 billion. In her professional career, Ms. Lucyna
Stańczak-Wuczyńska has held a number of corporate governance positions, has
been a member (or observer) of Supervisory Boards and a member of Audit and
Risk Committees at Polkomtel Sp. z o.o., Alior Bank S.A., Polskie Inwestycje
Rozwojowe, among others, currently at Erste Bank, Hungary and is a member of
the Advisory Board private equity funds. Since December 2020, she has been a
member, then Vice-Chairman and now Chairman of the Supervisory Board of
BNP Paribas Bank Polska S.A. For the past 2 years, Lucyna Stanczak-Wuczyńska
has also advised Private Equity, Actis, Global Emerging Market Fund and Pollen
Street Capital Fund in London. Last year she was appointed to the supervisory
board of Banca Transylvania, the largest bank in Romania in terms of assets.
Sustainability and Green Economy Transition topics have always been an
important area of interest in her professional work. She has been involved in
project finance related to renewable energy, energy efficiency, low carbon,
sustainable finance, green bond investing, SLB, and ESG topics in the area of
corporate governance and reporting.
Lucyna Stańczak-Wuczyńska is also the chairperson of the Chapter
Zero Poland Council (part of the Climate Governance Initiative). It
is a program for the development of competences of supervisory
and management bodies of companies. It was created by the
World Economic Forum. The aim of the Polish initiative is to raise
awareness of the consequences of climate change for companies
and the impact of business on the climate. Chapter Zero Poland
was launched in May 2021 by the Responsible Business Forum in
substantive partnership with Deloitte Polska.
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2. Jean-Paul Sabet – Vice-Chairman of the Supervisory Board
A graduate of the French business school Hautes Etudes Commerciale in
Paris. He started his career in Paribas Group companies, including the
Industrial Department at Paribas S.A. and the Private Equity Department. He
was a member of the boards of companies from the Paribas Group. From
1996 to 1998 he was Executive Director and Member of the Board of Directors
at Société Centrale d'Investissements. Then he was a member of the
Management Board of Klépierre S.A. (a company that specializes in
commercial real estate investments). From 2004 to 2006 he was a member of
the Executive Committee of BNP Paribas Group Retail Banking in France,
where he was responsible for finance and strategy. From 2006, he worked at
Banca Nazionale del Lavoro S.P.A. in Italy, where he supervised the
integration process of this company with the BNP Paribas Group, then in
2008-2009 he was the Chief Operating Officer (COO) in this company. Since
2010, he has worked in the International Retail Banking (hereinafter: IRB)
area, including retail banking of the BNP Paribas Group outside the euro area.
In the years 2013 - 2021 he was the deputy director of the IRB, exercising
control over the strategy and development of this segment. He supervised
amongst others retail banking in Central and Eastern Europe and Asia. In
addition, he is a member of the supervisory board of BMCI in Morocco (since
2017), a member of the supervisory board of L.D.C. S.A. in France (since 1988),
a member of the Supervisory Board of TEB Holding A.S. in Turkey (since 2010).
He was Chairman of the Supervisory Board of BNP Paribas Bank Polska in
2013-2015. In the years 2014-2015 he was the Chairman of the Supervisory
Board of BNP Paribas Bank Polska S.A. (then: BGŻ S.A.), and then became its
vice-chairman.
3. Francois Benaroya – Vice-Chairman of the Supervisory Board
A graduate of the École Polytechnique and the École Nationale de la
Statistique et de l'Administration Economique in Paris. Additionally, he holds
a Master's degree in Economics from Tilburg University (the Netherlands). He
is also a graduate of the Kennedy School of Government at Harvard
University. He started his professional career in 1994 at the Ministry of
Finance in France as the Deputy Director of the Emerging Markets
Department. Then he was an economic advisor on Russia and the
Commonwealth of Independent States at the French Embassy in Moscow. In
the years 1999-2001 he was the director of the Department of International
Trade Analysis at the Ministry of Economy, Finance, and Industry in France.
Then he was Deputy Director of the Cabinet of the Minister for European
Affairs. He has been associated with the BNP Paribas Group since 2004, when
he took the position of Deputy Director for Corporate Banking Development. In
2007-2011 he worked for Ukrsibbank - a Ukrainian bank in the BNP Paribas
Group - as Deputy Director of the Retail Banking Division, and then the
Director of this Division and Vice-President of the Bank's Management Board.
Subsequently, he was the Director of Retail Banking of the BNP Paribas
Group's International Retail Banking business line. In 2014, he became the
Managing Director for the Integration of BNP Paribas Bank Polska and Bank
BGŻ. From April 2015, he was a Vice-President of the Management Board of
BNP Paribas Bank Polska S.A. Initially, he was responsible for the Integration
Area, and from September 2015 for the Retail and Business Banking Area.
Since September 2017, he has been a member of the IRB management at BNP
Paribas Group (current name: Europe Mediterranean - BNP Paribas), where
he is responsible for Central and Eastern Europe and Turkey. In addition, he is
the Chairman of the Supervisory Board of Ukrsibbank and a member of the
Supervisory Board of TEB AS. Since 2018, he has been a member of the
supervisory board of BNP Paribas Bank Polska S.A. and currently the vice-
chairman.
4. Jarosław Bauc – Independent Member of the Supervisory Board
A graduate of the University of Łódź and the University of Windsor in Ontario,
Canada. He completed internships at the London School of Economics and at
the Wirtschafts-Universitat Wien. In the years 1982-1991, as a doctor of
economic sciences, he was a researcher at the University of Łódź. In the years
1992-1997 he was an advisor and project manager at the Center for Social
and Economic Research (CASE). In 1995 he was a consultant to the National
Bank of Estonia. In 1996 he was an advisor to USAID at the Ministry of
Finance in Mongolia, in 1997 in Romania and in 2000 in Georgia. In the years
1998-2000 he was Secretary of State and First Deputy of the Polish Minister
of Finance. In the years 1998-2000 he was a member of the Monetary Policy
Council. In the years 2000-2001 he was the Minister of Finance of the
Republic of Poland. He was a member of management and supervisory boards
of many companies. In the years 2002-2003 he was the President of the
Management Board of Powszechne Towarzystwo Emerytalne Skarbiec-
Emeryta, in the years 2004-2005 – Skarbiec Investment Management, in the
years 2004-2005 – Skarbiec Asset Management Holding, in the years 2004-
2006 – Skarbiec Towarzystwo Funduszy Inwestycyjnych. In the years 2006-
2007 and 2008-2011 he was the President of the Management Board and CEO
of Polkomtel, then – a member of the Management Board of this company. In
2013, he was the Vice-President of the Management Board of HAWE. Then, in
the years 2013-2015, he was the Vice-President of the Management Board of
Polskie Górnictwo Naftowe i Gazownictwa SA. He has been associated with
the BNP Paribas Group since 2010. In September 2014, he was appointed to
the Supervisory Board of BNP Paribas Bank Polska S.A. (then: BGŻ S.A.). Until
December 2020, he was the Vice-Chairman of the Supervisory Board of BNP
Paribas Bank Polska S.A., currently he is a member of the Supervisory Board.
5. Małgorzata Chruściak – Member of the Supervisory Board
A graduate of the Faculty of Law and Administration at the University of Warsaw
and postgraduate studies in coaching and mentoring at SWPS University of
Social Sciences and Humanities and the Psychoeducation Laboratory. She is a
lawyer with over 20 years of experience in business support, which she gained
amongst others as a Partner and Head of the banking practice while working in
the largest international law firms in Warsaw: White & Case, CMS Cameron
McKenna and EY Law. Since 2017, she has been working at EY Law Polska,
specializing in banking and finance consulting as well as restructuring processes.
She is recognized as a leading expert in the field of law and recommended in the
most prestigious legal rankings: Chambers Europe, IFRL and Legal 500. She
cooperates with the European Financial Congress (EFC). She is a practicing coach
and business mentor and a Member of the European Mentoring and Coaching
Council and a member of the Association of Restructuring Practitioners. In 2020,
she founded her own company "Mentoring for lawyers" combining legal practice
and coaching / mentoring.
6. Géraldine Conti – Member of the Supervisory Board
Graduate of Sapienza University in Rome and postgraduate studies at Bocconi
University and London Business School. She was a participant of the Women on
Board training program at the European Business School. She started her
professional career in 1996-1997 at the Italian Association for International
Organizations working with the Organization for Security and Cooperation in
Europe (OSCE). From 1997 to 1998 she worked at the Italian Ministry of Foreign
Affairs in the area of project financing. From 1998 to 2000 she worked at Abbott -
Diagnostic Division as a Controlling Specialist responsible for Italy. From 2000 to
2009 she worked at Banca Nazionale del Lavoro, first as HR Business Partner in
the area of "e-services", Budget Manager and HR Manager for Talent
Development, then as Payroll and Benefits Specialist and Head of International
Mobility in the process of integration with BNP Paribas. Since November 2009
till November 2022, she was the Managing Director of the HR Compensation and
Finance System for the IRB Area. She was responsible for HR issues across the
US and the Asia Pacific Region of the IRB Area. Since November 2022, she has
been head of the HR area of Banca Nazionale del Lavoro - BNP Paribas.
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 196
7. Stefaan Decraene – Member of the Supervisory Board
Graduated in Applied Economics from the Catholic University of Leuven, Belgium.
He started his career in 1988 at Bacob Bank, then became Head of Investment
Banking at Artesia Banking Corporation in 1998, later being appointed CEO of
Artesia Securities. He was then involved in Wholesale Banking at Dexia Bank
Belgium, after which he served as CEO of Artesia Bank Netherlands, then from
2002 he was a member of the Executive Board of Dexia Bank Netherlands and
Dexia Bank Belgium. From 2006 to 2011, he held the position of President of the
Management Board of Dexia Bank Belgium, being also a member of the
Management Board of Dexia S.A. He has extensive knowledge in retail and
commercial banking as well as in the area of asset management, insurance and
investment services. He served as Chairman of the Belgian Federation of the
Financial Sector (Febelfin) from December 2008 to August 2011. Since September
2015, a member of the Supervisory Board of BNP Paribas Bank Polska S.A
8. Magdalena Dziewguć – Independent Member of the Supervisory Board
A graduate of the Faculty of Law and Administration at the Adam Mickiewicz
University in Poznań and the University of Minnesota / Warsaw School of
Economics. She also graduated from the European University of Law and
Administration in Warsaw and postgraduate studies at the University of Social
Sciences and Humanities (SWPS) and Harvard Business School. In the years
1997-1999 she worked in the Sales Department at Scala Polska, which is a
global leader in ERP software. Then she was responsible for business
development at Orange Polska. She worked in the Orange B2B Corporate Market
Office. In the years 2007-2012 she worked at Plus GSM as the Director of the
Strategic Customer Department, Director of the Business Sales Department,
Director of the Key Account Department, and then B2B Managing Director – she
was responsible for managing all B2B sales and sales support. In the years
2011-2012 she was an Investment Advisor at MCI Management (VC and Private
Equity). In the years 2012-2014 she was the Marketing Director and Vice-
President of the Management Board at Exatel. At that time, she was responsible
for sales, marketing, PR, product development and HR. Since September 2014,
she has been working at Google and is the Director of Google Cloud business
development in Central and Eastern Europe – Poland, the Czech Republic,
Slovakia, and Hungary. In 2012–2014, she was a Member of the Supervisory
Board of PGE Dystrybucja SA and Chairwoman of the supervisory board of the
Independent Interzonal Operator (NOM). In the years 2012-2018 she was the
Chairman of the Audit Committee of the LiderShe Association. In the years 2014-
2018 – a Member of the Supervisory Board of the Humanites Foundation. In the
years 2016-2019 – a Member of the SWPS Board of Trustees. Since June 2019,
she has been a member of the Supervisory Board of BNP Paribas Bank Polska S.A.
9. Vincent Metz – Member of the Supervisory Board
A graduate of economics at the University of Paris – École Politechnique and at
the École Normale Supérieure de Lyon He started his professional career in 1993
at Compagnie Bancaire, which changed its name to Paribas in 1997. At that time,
he was the Director of Financial Models in the Planning and Development
Department. Since 1999, he has been associated with the CETELEM Group, in
which he held many functions. He was Director of External Development,
Director of CRM and Global B2C Analysis in the Sales Department, Director of
Planning and Development in the Finance Department. In 2009, he became
Director of Product Marketing in the Sales and Marketing Department at BNP
Paribas Personal Finance. He continued his career in the structures of BNP
Paribas Personal Finance. He held, amongst others positions of Director of
Marketing Analysis and Control in the Sales and Marketing Department, Deputy
Director of the Key Partners Department, as well as Deputy CEO in the PF Inside
Area. He is currently the Managing Director of Latin America and PF Inside and a
member of the Executive Committee of BNP Paribas Personal Finance. He
supervises BNP Paribas Personal Finance in six countries. He is an expert in
managing development projects – external development, partner relations. He
specializes in financial services and has experience in sales and marketing,
including finance and risk
10. Piotr Mietkowski – Member of the Supervisory Board
Graduate in economics from Paris Dauphine University. He completed
postgraduate studies in "International Economic Relations" at the Institute of
Political Science in Paris. He started his professional career as an economist,
focusing on emerging markets and European issues. Afterwards he worked in the
Business Development Department of BNP Paribas and in Corporate Finance
Department where he was responsible for CEE region. Mr. Piotr Mietkowski is
currently the Managing Director of Investment Banking for Central and Eastern
Europe, CIS, Greece and Turkey at BNP Paribas Group and a member of the
Supervisory Board at BNP Paribas Bank Polska S.A. (since September 2015) and a
member of the Supervisory Board of Ukrsibbank in Ukraine.
11. Khatleen Pauwels - Member of the Supervisory Board
She received her degree in commercial engineering from the EHSAL Business
School in Brussels in 2000. She started her career at Siemens IT Services, where
she was responsible for creating an e-commerce portfolio. Then she continued
work at Siemens Business Services, where she was a project manager, sales
portfolio manager and director of Bidding and Tendering. She also managed the
IT team for Outsourcing and Pre-Sales. Since 2007, she has been working for
Fortis Bank. Then she worked for BNP Paribas Fortis where she held many
positions. Since 2010 she was the Head of IT Resource Management and
Strategic Sourcing Team. Since 2013, she led more than a dozen process
improvement initiatives in Distribution Channels and CRM before becoming
Director of Distribution Channels and CRM in the E2E Operations Area in 2015. In
2018, she assumed the leadership of the Operations Department which leads
Consumer and Business Customer Service. Since January 2020, she is Managing
Director of the E2E Operations Area (referred to as: Customer Service Center) and
member of the Executive Committee of BNP Paribas Fortis
12. Mariusz Warych – independent Member of the Supervisory Board
A graduate of economics at the Faculty of Economics and Foreign Trade at the
University of Łódź. He holds a degree in Finance and Accounting from the
Hogeschool van Utrecht in the Netherlands. In the years 1997-1998 he
participated in the Association of Chartered Certified Accountants (ACCA)
program. He is a certified internal auditor with Certified Internal Auditor (CIA)
credentials. In the years 1996-2002 he worked as an External Auditor at Ernst &
Young in New York, Toronto, Vancouver, London, and Warsaw. In the years 2003-
2004 he was the Financial Director at Citileasing Sp. z o.o. and Handlowy-
Leasing S.A., in the years 2004-2008 he was the Regional Coordinator for Central
Europe at KBC GROUP N.V. In the years 2008-2011 he was the Director of
Internal Audit for Central, Eastern Europe and Russia at AVIVA. In the years
2011-2012 he was the Director of Enterprise Risk Management at Deloitte
Advisory and a member of the Supervisory Board and Audit Committee at
Jastrzębska Spółka Węglowa S.A. He was a Financial Advisor at the Canadian
Polish Congress in Vancouver, where he also hosted programs on NOFA Polish
Radio. Since 2009, he has chaired the Club of Audit Heads in Poland. He is a
Member of the Supervisory Board and Chairman of the Audit Committee at
Selena FM S.A. He is a specialist in: management, supervision and assessment of
the effectiveness of business operations, identification and resolution of financial
and operational weaknesses, risk management related to the achievement of
business objectives, internal audit, business training and independent
membership in Supervisory Boards and Audit Committees. Since June 2013, he
has been a member of the Supervisory Board of BNP Paribas Bank Polska S.A.
Supervisory Board Committees
[2-9]
The Supervisory Board creates internal Committees, which consist of Members of
the Supervisory Board. The Committees perform consultative and advisory
functions for the Supervisory Board and are aimed at improving its work. To this
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end, the Committees prepare opinions, recommendations, and proposals for
decisions on the motions received by the Supervisory Board on yearly basis. The
scope and mode of operation of committees are determined by their regulations,
which the Supervisory Board introduces in the form of a resolution.
Committees of the Bank's Supervisory Board:
Audit Committee
Risk Committee
Remuneration Committee
Nominations Committee
The composition of the Committees is presented in Table 109 Composition of the
Supervisory Board and Supervisory Board Committees as of 31.12.2022 together
with information on the independence of members.
Composition of the Audit Committee
The Audit Committee supports the Supervisory Board in monitoring the reliability
of financial information, the effectiveness of the internal control system and
monitoring the performance of financial audit activities. It is responsible for
ensuring the effectiveness of the Bank's internal audit function, by supervising
the activities of the Internal Audit Division. It ensures the flow of information and
good cooperation between the External Auditor (Statutory Auditor), Internal Audit
and the Supervisory Board. The Audit Committee prepares annual reports on its
activities. It takes into account the risk assessment of the areas it supervises and
assesses the effects of its activities. In addition, the Audit Committee supervises
the activities of the Statutory Auditor and periodically evaluates his work. The
Audit Committee was established by the Supervisory Board in accordance with
the law concerning the appointment, composition and functioning of the Audit
Committee, as well as the independence of its members and their appropriate
knowledge and skills, knowledge of accounting principles and audit of financial
statements.
Composition of the Audit Committee
The Audit Committee is composed of four members, three of whom are
independent members of the Supervisory Board. They meet the independence
criteria referred to in the "Regulation of the Minister of Finance on the audit
committee" and § 16 section 4 of the Bank's Statute, as well as in the "Act on
Statutory Auditors, Audit Firms and Public Supervision".
Composition of the Audit Committee as of 31 December 2022:
Mariusz Warych – Chairman of the Committee (independent member)
Lucyna Stańczak-Wuczyńska – Member of the Committee (independent
member)
Jarosław Bauc – Member of the Committee (independent member)
Francois Benaroya – Member of the Committee
All members of the Audit Committee have adequate knowledge, competence, and
many years of experience in the field of finance and accounting:
Mariusz Warych – competence in accounting, auditing, and internal audit,
confirmed by a CIA diploma. Participant of the ACCA Coursework programme.
Many years of experience as an independent member of supervisory boards
and audit committees (JSW, Selena FM, Ukrsibbank Ukraine). External auditor
at Ernst & Young - auditing banks in Poland, UK, Canada, and USA. He assessed
the functioning of Audit Committees. Chairman of the Heads of Audit Club in
Poland. He gained his knowledge and skills as a Citi Group CFO in leasing
companies and as a KBC regional coordinator supervising KBC's operations in
Poland.
Lucyna Stańczak-Wuczyńska – economic education and experience in the field
of banking and finance gained during her 30-year work experience in the
banking sector, in commercial banking and EBRD. During her professional
career, Ms Lucyna Stańczak-Wuczyńska held a number of corporate
governance positions, was a member (or an observer) of supervisory boards
and a member of audit and risk committees (e.g. Alior Bank). She gained her
industry knowledge and skills through many years of managing (as Director of
EU Banks Team at EBRD in London) the portfolio (debt and equity) of a
significant group of banks in 12 countries of the European Union, in Central and
Southern Europe
Jarosław Bauc – holds a PhD in economics. He gained his experience serving on
the management and supervisory boards of a number of companies
(Powszechne Towarzystwo Emerytalne SkarbiecEmerytura, Skarbiec
Investment Management, Skarbiec Asset Management Holding and Skarbiec
Towarzystwo Funduszy Inwestycyjnych, Polkomtel, HAWE, PGNiG). He has a
comprehensive knowledge of finance and banking in Poland and abroad.
Francois Benaroya – with a degree in economics, he gained knowledge and
experience in banking during his long-term employment in the banking sector
on senior positions within the BNP Group. He was a member of the Board of
Executives of BNP Paribas Bank Polska S.A. responsible for Integration Area,
then for Retail and Business Banking. He serves on Supervisory Boards
(Ukrsibbank Ukraine, TEB AS) and in the IRB management of the BNP Paribas
Group (current name: Europe Mediterranean - BNP Paribas) where he is
responsible for CEE and Turkey.
Detailed information on the education and professional experience of the
Committee members is presented in the Supervisory Board section and on the
Bank's website https://www.bnpparibas.pl/o-banku/wladze-banku.
The meetings of the Audit Committee are also attended by the regular members
of the following meetings:
Chairman of the Board
Member of the Management Board who supervises the Finance Area,
Member of the Management Board who supervises the Risk Area,
Managing Director of the Internal Audit Division,
Managing Director of the Compliance Division.
Audit Committee Meetings
[2-14]
Meetings of the Audit Committee are held at least four times a year or more
frequently, depending on the needs arising from the tasks performed, including
each time before the publication of the Bank's financial results and reports.
In 2022, 11 meetings of the Audit Committee were held, including five written,
during which among others the following matters were discussed and approved:
financial statements for 2021,
the report on the activities of the Bank's Capital Group for 2021,
ESG report containing non-financial information for 2021,
quarterly and half-yearly reports on financial results in 2022,
information on the capital adequacy of the BNP Paribas Bank Polska S.A. Group,
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provision of additional services by an Audit Firm,
action plans of the Internal Audit Division and the Compliance Monitoring
Division,
annual and periodic reports on the activities of the Internal Audit and
Compliance Divisions,
an annual report on the assessment of the adequacy and effectiveness of the
Internal Control System,
periodic reports on the status of monitored post-audit recommendations and
the implementation of PFSA recommendations,
information on the Bank's compliance with the "Best Practice of WSE Listed
Companies 2021" and the process of financial information communication in
2021,
annual report on the activities of the Bank's Audit Committee for the
Supervisory Board.
In addition, the Committee periodically evaluated the performance of the
External Auditor. It discussed and verified the updated regulations in the area of
accounting, auditing and compliance and recommended to the Supervisory Board
to adopt them.
In 2022, all members of the Audit Committee actively participated in the
meetings of the Committee and showed high commitment to the proper
performance of their duties. The overall attendance of Committee members at
meetings was 98%. The number and duration of meetings, as well as access to
resources, were sufficient to enable the Audit Committee to fully discharge its
responsibilities.
Audit Committee oversight of selection of Audit Firm
The Audit Committee supervises the activities of the statutory auditor. It issues
recommendations for the Supervisory Board regarding the selection or
resignation from the services of an entity authorized to audit financial
statements, monitors compliance with the principle of independence and
objectivity of the statutory auditor and the principles of exchange of information.
In addition, the Committee shall periodically evaluate the performance of the
external auditor.
In September 2017, the Supervisory Board approved the following prepared by
the Audit Committee:
“Policy on the selection of the audit firm at BNP Paribas Bank Polska S.A.”
"Procedure for the selection of the audit firm at BNP Paribas Bank Polska S.A."
"Policy on the provision of permitted non-audit services by the audit firm, by
affiliates of the audit firm and members of the audit firm's network at BNP
Paribas Bank Polska S.A."
These documents set out such rules so that the selection of the audit firm is
carried out correctly and in accordance with applicable law. Below are the most
important rules:
the maintenance of the independence of the audit firm and the key statutory
auditor,
applying transparent and non-discriminatory evaluation criteria when
selecting an audit firm during the tender process,
ensuring that principles for the appropriate rotation of audit firms and the key
statutory auditor are followed, including cooling-off periods
The fundamental assumption of the Policy on rendering permissible non-audit
services by the audit firm, by entities related to the audit firm and members of
the audit firm's network at BNP Paribas Bank Polska S.A. is to analyse
compliance of the additional service with legal regulations as well as to control
and monitor independence of the key statutory auditor and the audit firm. The
policy allows for the provision of permitted services, to the extent not related to
the Bank's tax policy, following an independence analysis and authorization to
their provision.
The audit company Mazars Audyt Sp. z o.o. authorized to audit and review the
separate financial statements of BNP Paribas Bank Polska S.A. and the
consolidated financial statements of the BNP Paribas Bank Polska S.A. Capital
Group, together with reporting packages, has been providing services to the Bank
since 2020.
On 9 December 2021, the Supervisory Board, taking into account the
recommendation of the Audit Committee, decided to extend the contract with the
current audit company Mazars Audyt Sp. z o.o. for the years 2022-2023.
The recommendation of the Audit Committee concerning the selection of an
audit firm to audit financial statements was prepared following an organized
selection procedure that meets the criteria set out in the Selection Policy (§ 4)
and the Procedure for selecting an audit firm (§ 8).
When assessing the independence of the audit firm and granting consent to
provide the service, the Bank used the path of acceptance of the key statutory
auditor and audit firm to carry out the statutory audit of the financial statements
of the Bank and the Bank's Capital Group, specified in the Statutory Auditor
Selection Policy.
In 2022, the audit firm auditing the financial statements provided the Bank with
the following permitted non-audit services in the scope of reviewing the
financial reports of the Bank and the Bank's Capital Group as well as
consolidation packages:
"Assessment of the Remuneration Report of the Supervisory Board and the
Management Board for 2021" - The remuneration report is assessed by a
statutory auditor in accordance with Article 90g, point 10 of the Act of 29 July
2005 on Public Offering, Conditions Governing the Introduction of Financial
Instruments to Organised Trading, and Public Companies,
assurance service consisting of expressing an opinion on the compliance of the
consolidated financial statements for 2022 prepared in a uniform electronic
reporting format with the requirements set out in the ESEF Regulation",
attestation services for reports on Information on capital adequacy of the Bank's
Capital Group - Pillar 3.
Independent assurance service concerning a document containing information
on the capital adequacy of the Bank's Group, excluding attestations in the scope
of ESG risk disclosures (assessment of the report's compliance with the
requirements of Regulation (EC) No 575/2013 of the European Parliament and of
the Council of 26 June 2013 on prudential requirements for credit institutions
and investment firms (CRR).
Risk Committee
The Risk Committee’s responsibility is to support the Supervisory Board in its
fulfilment of supervisory duties in the risk management area, particularly
including: providing opinion on the Bank’s current and future ability to take risk,
providing opinion on the risk management strategy in the Bank’s operations
prepared by the Management Board and on information from the Management
Board concerning execution of this strategy, supporting the Supervisory Board in
supervision over implementation of risk management strategy in the Bank by
executive employees, verifying whether prices of liabilities and assets offered to
Clients reflect in full the business model of the Bank and its risk strategy, and
where these prices do not adequately reflect the risks in accordance with the
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model and strategy - presenting to the Management Board recommendations on
how to ensure the adequacy of prices of liabilities and assets with these risk
categories
Composition of the Risk Committee
The Committee is composed of at least three members of the Supervisory Board
Composition of the Risk Committee as of 31 December 2022
Francois Benaroya – Chairman of the Committee
Małgorzata Chruściak – Member of the Committee (independent member)
Lucyna Stańczak-Wuczyńska – Member of the Committee (independent
member)
Mariusz Warych – Member of the Committee (independent member)
Risk Committee Meetings
The Risk Committee shall meet at least four times a year. The dates of
meetings shall be fixed by the Chairman of the Committee. In 2022, the Risk
Committee held four meetings. During the meetings, the Risk Committee
discussed periodic reports on
credit risk,
market and liquidity risk,
operational risk and fraud prevention,
ALMT risk,
legal risk,
In addition, the Committee provided opinions and recommended resolutions to
the Supervisory Board, which included:
risk appetite at BNP Paribas Bank Polska S.A.,
update of the BNP Paribas Bank Polska S.A. Recovery Plan,
update of the Internal Capital Estimation Policy,
operational risk management and internal control strategy,
investment strategy,
risk management strategy,
Capital Plan of BNP Paribas Bank Polska S.A. for 2023-2025,
updating the Capital Management Policy and the Emergency Capital Plan,
methodology for the analysis of stress tests on the sensitivity of interest rate
positions, currency positions, liquidity, and capital.
In 2022. The Committee paid particular attention to the legal risks associated
with legal proceedings concerning foreign-currency/CHF-denominated loans, as
well as the risks associated with loan holidays.
The number of Committee members participating in individual meetings of the
Risk Committee allowed for the proper conduct of all meetings of the Committee
in 2022. The attendance of Committee members was at 100%
Remuneration Committee
The Remuneration Committee supports the Supervisory Board in the fulfilment of
its supervisory duties in the respect of human resource management by
monitoring and overseeing key processes, in particular: HR policy, professional
development of employees and remuneration policy. The competences of the
Committee include, among others: analysing the performance of the members of
the Management Board and proposing recommendations to the Supervisory
Board in this respect as well as recommending to the Supervisory Board key
performance indicators for the members of the Management Board, giving its
opinion and monitoring succession plans for key positions in the Bank,
monitoring the level and structure of remuneration for key positions in the Bank
and submitting to the Supervisory Board annual information on the employment
and remuneration structure in the Bank and an annual report on its activities.
Composition of the Remuneration Committee
The Committee is composed of at least three members of the Supervisory Board.
Composition of the Remuneration Committee as of 31 December 2022:
Jean-Paul Sabet – Chairman of the Committee
Géraldine Conti – Member of the Committee
Francois Benaroya – Member of the Committee
Lucyna Stańczak-Wuczyńska – Member of the Committee (independent
member)
The Chairwoman of the Supervisory Board, Ms. Lucyna Stańczak-Wuczyńska,
who is also a member of the Remuneration Committee and the Nominations
Committee, meets the independence criteria described in § 16 section 4 of the
Bank's Statute.
Remuneration Committee meetings
The Remuneration Committee meets at least twice a year or as often as
necessary for the effective accomplishment of the tasks and missions of the
Committee. The dates of meetings are be fixed by the Chairman of the
Committee. In 2022, the Remuneration Committee held seven meetings,
including three written. During its meetings, the Committee discussed:
annual objectives of the members of the Bank's Management Board and
achievement of these objectives,
remuneration principles and variable remuneration of members of the
Management Board and managers of the audit and compliance area,
report on employment and remuneration at the Bank in 2021,
evaluation of the Bank's application of the Remuneration Policy,
terms of issue of A series warrants,
terms of the incentive program for persons having a significant impact on the
Bank's risk profile based on N series shares,
issued an opinion on the remuneration report of Members of the Management
Board and Supervisory Board of BNP Paribas Bank Polska S.A. for 2021,
issued an opinion on the price conditions for credit products for certain
Members of the Management Board,
information on how to ensure that adequate HR resources are in place and
maintained in order to implement plans and face arising challenges - including
information on increased personnel costs, investments in diversity and
retention,
information on sales systems at the Bank in 2022.
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Nominations Committee
[2-10], [2-18]
The Nominations Committee supports the Supervisory Board in evaluating the
qualifications of candidates for members of the Bank's Management Board and
Supervisory Board. Together with the Supervisory Board, the Nominations
Committee determines the criteria to be used in the selection of the members of
the Management Board and the Supervisory Board. The criteria take into
account: knowledge, competence and expected commitment in terms of time
required to perform the function. In addition, the Committee determines the
responsibilities of a candidate for the Bank's Management Board. The
Nominations Committee periodically assesses, at least once a year, the
knowledge, competence, and experience of the Bank's Management Board as a
whole as well as individual members of the Management Board. It also
evaluates the structure, size, composition, and effectiveness of the activities of
the Bank's Management Board and then makes recommendations to the
Supervisory Board for any changes in this respect. In addition, the Nomination
Committee performs an individual assessment of the appropriateness (initial and
periodic) of the members of the Supervisory Board and the assessment of the
collective appropriateness of the Supervisory Board as a whole. The assessment
of individual and collective adequacy is carried out at least once a year and in
situations specified in the Bank's Policy of assessing the adequacy of members of
the Supervisory Board of BNP Paribas Bank Polska S.A., among others in the case
of nominating candidates for members of the Supervisory Board (before
appointing a given person to perform the function), in the event of a change in
the composition of the Supervisory Board or a significant change in the Bank's
business model.
The Nomination Committee evaluates and monitors the effectiveness of the
Bank's Suitability Assessment Policy with respect to members of the Supervisory
Board and the Suitability Assessment Policy with respect to Management Board
members and employees performing key functions in the Bank. As part of the
Policies, the adequacy of members of the Supervisory Board, members of the
Management Board and persons who perform key functions in the Bank is
checked. The Nomination Committee periodically reviews the policy and makes
recommendations on changes to the Supervisory Board. In addition, the
Nomination Committee oversees key processes such as succession plans and
employee professional development, presents to the Supervisory Board
recommendations concerning the process of nomination and succession of
persons in key positions and recommendations to reduce or increase the number
of members of the Bank's Management Board.
Compositions of the Nominations Committee
[2-18]
The Committee is composed of at least three members of the Supervisory Board.
The members of the Nominations Committee must have appropriate knowledge,
competence, and experience to properly assess the composition of the
Management and Supervisory Boards and the recommended candidates for the
Management and Supervisory Boards. As part of the suitability assessment,
which is performed on a cyclical basis once a year or in the event of other
circumstances resulting in the necessity to conduct an assessment, knowledge,
skills and professional experience (e.g. in ESG risk management) are assessed. A
detailed criteria matrix is attached as an appendix to the Suitability Assessment
Policy for the members of the Supervisory Board of BNP Paribas Bank Polska SA.
Composition of the Nominations Committee as of 31 December 2022:
Jean-Paul Sabet – Chairman of the Committee
Géraldine Conti – Member of the Committee
Francois Benaroya – Member of the Committee
Lucyna Stańczak-Wuczyńska – Member of the Committee (independent
member)
Nominations Committee Meetings
The Committee meets as often as necessary for the effective accomplishment of
the Committee's mission, but at least twice a year. The dates of meetings shall
be fixed by the Chairman of the Nominations Committee. In 2022, the
Nominations Committee held four meetings, including one written.
During its meetings, the Committee:
performed a periodic assessment of the individual and collective adequacy of
members of the Supervisory Board and members of the Bank's Management
Board. The Committee confirmed the positive assessment of the individual and
collective adequacy of the members of the Management Board and the
Supervisory Board,
discussed and recommended to the Supervisory Board to adopt the rules of
conduct in the process of making organizational changes, applying for
additional posts, and exceeding costs,
discussed the amendments to the Policy for assessing suitability of members of
the Supervisory Board of BNP Paribas Bank Polska S.A. and the Policy for
assessing suitability of members of the Management Board and persons
performing key functions in BNP Paribas Bank Polska S.A. The Committee
recommended to the Supervisory Board to adopt the above regulations,
discussed the proposal of successors for critical positions on the level of
Management Board Members and Executive Directors.
Management Board of the Bank
The Bank's Management Board is the management and executive body that
operates on the basis of applicable laws, the Bank's Statute and the Regulations
of the Management Board. As of 1 January 2020, the Bank's Management Board
consists of nine members and this is pursuant to the Bank's Statutes. The
members of the Management Board - president and vice-presidents - are
appointed by the Supervisory Board for a joint term of office which lasts three
years. The mandates of the members of the Management Board expire upon
expiry of their terms of office on the date of the General Meeting which approves
the financial statements for the last full financial year in which they performed
their functions. In addition, the Supervisory Board, acting on the basis of the
"Policy for appointing and dismissing members of the Management Board", may
at any time dismiss or suspend a member of the Management Board. The
President of the Management Board and at least one other member of the
Bank's Management Board must have the knowledge and experience to manage
the Bank in a stable and cautious manner. At least half of the members of the
Bank Management Board should have good knowledge of the banking market in
Poland, i.e., they should permanently reside in Poland, have a good command of
Polish and have gained the required experience on the Polish market.
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 201
Table 111. Composition of the Bank’s Management Board as of 31.12.2022 r.
And division of functional responsibilities of particular Board members
Name and Surname
Office held in
the
Management
Board of the
Bank
Supervised areas
Przemysław Gdański
President
Bank Management, Strategy and Agro Markets
Area, Human Resources Area, Transformation
Area, Sustainable Development Area
Jean-Charles Aranda
Vice-President
Finance Area
André Boulanger
Vice-President
CIB Banking Area
Przemysław Furlepa
Vice-President
Brokerage Office, Retail and Business Banking
Area
Wojciech Kembłowski
Vice-President
Risk Area
Kazimierz Łabno
Vice-President
Operations and Business Support area
Magdalena Nowicka
Vice-President
New Technologies and Cyber Security Area
Volodymyr Radin
Vice-President
Personal Finance (PF) Banking Area
Agnieszka Wolska
Vice-President
SME and Corporate Banking Area
The competences and professional experience of individual members of the
Bank's Management Board are presented on the Bank's website
https://www.bnpparibas.pl/o-banku/wladze-banku.
Top management makes every effort to expand its scope of competences in the
area of sustainable development, climate change and climate policy through
advanced, international trainings (e.g. Cambridge Institute for Sustainability
Leadership) and meetings with recognized experts and researchers. President of
the Management Board Przemysław Gdański completed specialist training in
Sustainability at IE Business School in Madrid in 2021.
In the period from 1 January to 31 December 2022, there were no changes in the
composition of the Bank's Management Board.
Members of the Bank’s Management Board
[2-17]
1. Przemysław Gdański – President of the Management Board
Przemysław Gdański graduated from the University of Gdansk (faculty:
International Trade) and completed a one-year program in international banking
and finance at the Loughborough University in the UK. He completed the
Advanced Management Program (AMP) at IESE Business School and a number of
professional and managerial development programmes at, a.o., Harvard Business
School, London Business School, University of California, Berkeley - Haas School
of Business, Ashridge - Hult International Business School and HEC. He has been
working in corporate banking for over 25 years. From 1993 to 1995 he worked for
IBP Bank SA (BRE Bank was one of its shareholders), then for ABN AMRO Bank in
Poland, Romania, and in the head office in Amsterdam. From 2002 to 2006, he
was Managing Director of Large Corporates Division in BPH Bank SA. From May
to November 2006 he was Chief Executive Officer and General Director of Calyon
Bank Polska and Calyon Branch in Poland. In November 2006, he took the
position of Vice-President of the Management Board of BPH Bank, responsible for
corporate banking and real estate financing. As a result of the merger of a part of
BPH Bank and Pekao SA, Mr Gdański was appointed as Vice-President of the
Management Board, responsible for Corporate Banking, Markets and Investment
Banking of Pekao SA. From 2008 to 2017, he was a member of the Board of
Directors and Vice-President of mBank, where he was responsible for the
Corporate and Investment Banking Division. Since November 2017, he has been
the CEO of BNP Paribas Bank Polska S.A and a Territory Head for BNP Paribas,
supervising BNP Paribas Group’s enterprises in Poland. For many years she has
been a patron of initiatives to promote diversity, gender equality and to support
activities and promote professional development of women
2. Jean-Charles Aranda – Vice-President of the Management Board
Jean Charles Aranda graduated with honors from the University of Bordeaux in
France, where he received an MA in Internal Audit and Management Controlling.
He is a chartered accountant. Jean-Charles Aranda started his career in 1998 at
the Paris office of KPMG, where he was the manager responsible for banking
financial audit. Between 2004 and 2009 he acted as Head of Mission at the BNP
Paribas Inspection Generale’s central accounting team. He was charged with,
among others, the creation of a new audit team dedicated to financial audits. In
2009 he was appointed CFO of BNP Paribas El Djazaïr in Algeria. In January 2013
he was promoted to the post of CEO of that bank. Between August 2016 and April
2017, he held the post of Managing Director of the Management Accounting and
Capital Management Line of BNP Paribas Bank Polska S.A. Since April 2017 he
has been a member of the Management Board, then Vice President of the
Management Board of BNP Paribas Bank Polska S.A., supervising the Finance
Area.
3. André Boulanger – Vice-President of the Management Board
He graduated with honors from the Université Libre de Bruxelles in Belgium. He
started his career in 1986 at Crédit Communal de Belgique (now Belfius Bank),
where he worked until 1989. He then became Director of the Brussels branch of
Banque Paribas Belgium and later Deputy Director of the Risk Department at
Banque Paribas Belgium. In the years 1994-1998 he was the vice-president of
Banque Paribas France, where he was responsible for commercial banking in
subsidiaries in Europe. In the years 1998-2000 he was the Managing Director of
the Corporate Banking Area at Banque Paribas Belgium. After the merger of BNP
and Paribas in 2000, he became Managing Director of the Corporate and
Investment Banking Area. Since 2002, he has continued his career at BNP Paribas
in France as Managing Director of the Acquisition Financing and Structured
Loans Area in the Continental Europe region. In 2005, he became Managing
Director of the Corporate Banking Area in Central and Eastern Europe at BNP
Paribas in France, and in 2007 Director of the General Corporate and Transaction
Banking Area. From 2010 to 2014, he became CEO and Chairman of the Board of
BNP Paribas in the Netherlands. In 2014, he became Managing Director of
Corporate Banking Operations in the Europe region, and in 2015 Managing
Director of the EMEA Operations Area. From 2017, he was the President of the
Management Board of BNP Paribas JSC and the General Director for the Russian
Federation. Since November 2018, he has been Vice-President of the
Management Board of BNP Paribas Bank Polska S.A. responsible for the CIB
Banking Area.
Top management makes every effort to expand its scope of
competences in the area of sustainable development, climate
change and climate policy through advanced, international
trainings (e.g. Cambridge Institute for Sustainability Leadership)
and meetings with recognized experts and researchers. President
of the Management Board Przemysław Gdański graduated in 2021
from IE Business School in Madrid in the field of Sustainability.
Introduction
About us
Environment
Strategy and
prospects
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execution
Financial
results
Risks and
opportunities
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governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 202
4. Przemysław Furlepa – Vice-President of the Management Board
A graduate of the Academy of Economics (now the University of Economics) in
Katowice. He completed post-graduate studies at the Gdansk Bank Academy,
Warsaw School of Economics and Jagiellonian University. He participated in
numerous national and international managerial courses and workshops. He
started his professional career with BPS Consultants Poland (now Nielsen
Marketing Research). Then in the years 1994-1996 he worked as the Analyses
Team Manager in the Wydawnictwo Papierów Wartościowych (securities
publishing house). From 1996 to 2002 he worked for ING Bank Śląski, where
initially he was employed in the Controlling Department and in the following
years he was the Head of the Small and Medium-sized Enterprises Department,
Corporate Customer Market Manager and Deputy Director of the Corporate
Customer Department. In the years 2002-2004 he was the Financial Director and
Board member in Alpinus SA (now HiMountain). In 2005 he started working for
ING Bank Śląski on the position of the Regional Retail Sales Director in Katowice
and then Gliwice. In the years 2007-2009, he was Retail Sales Department
Director and between 2010 and 2012, he was Sales and Quality Development
Department Director. In the subsequent four years, as the Executive Director of
Retail Banking he was responsible for the management of Customer relations,
segments and internet banking. From January to July 2017, he was Executive
Director of Retail Banking responsible for management of Digital Banking and
Entrepreneurs Segment. He was a member of international projects focused on
building added value for Customers through an omni-channel approach, increase
in quality of digital services offering and cooperation with fin-techs. Since
October 2017 he has been Vice President of the Management Board of Bank BNP
Paribas Bank Polska S.A., responsible for Retail and Business Banking Area
5. Wojciech Kembłowski – Vice-President of the Management Board
He is a graduate from the Warsaw School of Economics (Faculty of Finance and
Statistics). He completed several management courses organised by Harvard
Business School and Raiffeisen Bank International AG. At the beginning of his
professional career (1993-1997), he worked for CSBI S.A., a company of the
Sygnity S.A. group, where he held the position of head of Analysis in the Financial
Department. Then he worked for Raiffeisen Bank Polska S.A., first as a financial
analyst and an account manager (1997-2000), and then as a risk manager
(2000-2003). In the years 2003-2008, he was the Head of the Credit Risk
Management Department of Raiffeisen Bank Polska S.A. responsible for
corporate, SME and financial institutions. In the years 2008-2011, he held the
position of director and subsequently of managing director of the Risk Area of
Raiffeisen Bank Polska S.A. Since May 2011, he was working for BNP Paribas
Bank Polska S.A. as a member of the Management Board and the Chief Risk
Officer. Since May 2015 he has been a Vice President of the Management Board
of BNP Paribas Bank Polska S.A. supervising the Risk Area
6. Kazimierz Łabno – Vice-President of the Management Board
Kazimierz Łabno holds a degree in sociology from the Jagiellonian University in
Kraków and post-graduate degree in banking studies from the Cracow University
of Economics. He has nearly 30 years of professional experience in universal
banking projects as well as in the area of nearshoring and operations. He started
his banking career in 1990 at BPH Bank and worked there until 2010. He was
responsible for the project of merging Bank Przemysłowo-Handlowy with
Powszechny Bank Kredytowy. In 2005, he managed the BPH Bank’s demerger
process. In 2007, he became the vice-president of the management board
responsible for IT, operations, services and integration. In 2010, he left BPH Bank
to manage the Strategic Projects Department at Alior Bank. In 2012 he
interrupted his career in the banking sector and established a cardboard
packaging factory - TriPack Ltd. In 2013, for 8 months, he was the vice-president
of the management board of IT BPS company, part of Bank Polskiej
Spółdzielczości S.A. Group. Since November 2013, he had held the position of
operations director and transformation manager at Raiffeisen Bank Polska SA.
Since November 2018 he has been a Vice President of the Management Board of
BNP Paribas Bank Polska S.A. supervising the Operations & Business Support
Area.
7. Magdalena Nowicka – Vice-President of the Management Board
Magdalena Nowicka is a graduate of the Faculty of Mathematics at the Maria
Curie Skłodowska University in Lublin and holds an MBA degree from the
Warsaw University of Technology. She also completed a post-graduate course in
management and IT in business at the Warsaw School of Economics. She worked
for ING Group for 20 years. She began her career at ING Barings in 1997, then
she worked in the IT Division at ING Bank Śląski where she was holding the
position of Head of IT Support Department. From 2006 to 2016 she was CEO of
ING Group’s technological center rendering IT services, including cybersecurity
and cloud solutions for Clients located in more than 20 countries. In 2017 she
took the position of Head of IT Poland at Nordea. Among other projects, she
participated in building the Nordea Horizon Center – a modern IT monitoring
and operational center. As the Global Head of Technology Sourcing at Nordea,
she was also responsible for executing its strategy in terms of utilizing global IT
services centers. Since January 2021 she has been a Vice President of the
Management Board of BNP Paribas Bank Polska S.A. supervising the New
Technologies and Cybersecurity Area. Magdalena Nowicka is active in projects
supporting the development of women in the world of new technologies. She is a
mentor of the programme "Technology in a skirt".
8. Volodymyr Radin – Vice-President of the Management Board
Graduate of the Ukrainian Academy of Banking (National Bank of Ukraine). He
also completed a graduate course in marketing at the HEC in Paris and a course
on running Boards of directors at the Ukrainian Corporate Governance Academy.
He has over 15 years of banking experience. From 2002 to 2003 he worked for
Bank Aval (Raiffeisen Bank Aval) as the Head of the Consumer Finance unit.
From 2003 to 2007 he held the position of Head of Retail Business Line in
Universal Bank of Development and Partnership (Foxtrot Group), then, from
2007 to 2008, he was the Deputy Head of the Retail Business Line and Head of
Product Management in Kreditprombank. In 2008 he joined the BNP Paribas
Group as Head of Sales and Marketing and Deputy Head of Personal Finance
Business Line at Ukrsibbank (BNP Paribas Group). In 2014 he was nominated
Head of Personal Finance Business Line, member of the Management Board of
Ukrsibbank and later, Deputy CEO of the Bank. During his over 15-year career at
financial institutions, he participated in numerous projects consisting in the
creation, deep transformation or comprehensive modernization of retail banking
operations: consumer finance, credit cards, automotive financing, mortgage
loans, payment services, savings products, debt collection, contact centers.
Based on his solid financial background he has built strong competences in
various areas of the banking industry such as sales & marketing, financial
planning and budgeting, operational and credit risk management, commercial
analytics, Client satisfaction management, large scale operations covering call
centers, Customer service, telemarketing, underwriting and debt collections
activities. Since October 2019 he has been Vice President of the Management
Board of BNP Paribas Bank Polska S.A., supervising the Personal Finance Banking
Area.
9. Agnieszka Wolska – Vice-President of the Management Board
Agnieszka Wolska graduated in Finance and Banking from the Warsaw School of
Economics. During her career, she also participated in numerous courses in
finance, management and leadership. She has over 17 years of experience in
stock-listed international banks. She started her professional career in 2003 at
Bank BPH in the Structured Finance Department. In 2006, she took the position
of Deputy Head of the Structured Finance Department. She became the Deputy
Head of Corporate Solutions at Bank Pekao in 2007, and the Head of the TMT
Bureau at this bank in 2010. In 2014, she took the position of the Head of Large
Corporate Department at Santander Bank Polska, and in 2016 she was
nominated for the position of the managing director, Head of Corporate Banking
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
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governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 203
Area at this bank. In the same year, she joined the group of 10+ top-level
executives at Santander Bank Polska, forming executive management team of
Polish operations. In 2018, she was appointed managing director, Head of
Business and Corporate Banking Area at Santander Bank Polska. Since September
2021, she is Vice President of the Management Board of BNP Paribas Bank
Polska S.A. and oversees the SME and Corporate Banking Area.
Principles of functioning of the Management Board
The Management Board handles all matters of the Bank which are not reserved
by law and which do not fall within the competence of other bodies of the Bank.
A detailed description of the operation, including the scope of competence of the
Management Board, is set out in § 22(2) of the Bank's Statutes and in the
Regulations of the Bank's Management Board
A list of the most important matters handled by the Board:
1) Preparing a draft strategy for the development of the Bank and submitting it
to the Supervisory Board for approval.
2) Preparation of the financial plan and acceptance of the report on its
implementation.
3) Adoption of the report on the Bank's activities, the Bank's financial
statements and the report on the activities and consolidated financial
statements of the Capital Group.
4) Determination of the human resources policy, including in particular the
principles of remuneration, the structure and profile of employment, the
principles of the social policy.
5) Defines the Bank's product policy.
6) Determination of the organisational structure of the Bank.
7) Determination of the management areas supervised by the particular
members of the Management Board.
8) Establishment of a policy for identifying key functions and for appointing and
removing persons performing those functions,
9) Definition the principles of ethics defining norms and ethical standards of
conduct of members of the Bank's governing bodies and employees, as well
as other persons through whom the Bank conducts its activities,
10) Creation and cancellation of the Bank's committees and determination of
their competencies.
11) The establishment of commercial proxies,
12) Definition of the areas of management supervised by individual members of
the management board.
13) Establishment of the rules for the functioning of internal control and audit,
14) Establishment of the risk management strategy including policies and
procedures for risk identification, assessment, control, monitoring and risk
reporting,
15) Making decisions on the purchase or sale of real estate, a share in real
estate, or the right of perpetual usage, if their value is lower than PLN
10,000,000 (ten million) but higher than PLN 5,000,000 (five million);
however, it is stipulated that the resolution of the Management Board is not
required in the case where the purchase or sale of real estate, a share in real
estate, or the right of perpetual usufruct is related to the satisfaction of the
Bank's claims against its debtor securing the Bank's receivables or a lease
agreement in which the Bank acts as a financing party, including in
particular in the case of purchase in the performance of a lease agreement,
sale after the expiry of a lease term or during a lease term and sale after
termination of a lease agreement concerning a given real property, a share in
real property or the right of perpetual.
16) Deciding on contracting an obligation or disposing of a right the total value
of which in relation to one entity exceeds 5% of own funds.
.
The Management Board of the Bank manages the Bank's affairs and represents
the Bank externally. The Bank's Statute defines how the Management Board
represents the Bank. Pursuant to § 26 of the Bank's Statute, declarations of will
on behalf of the Bank may be submitted by:
two members of the Management Board who act jointly or one member of the
Management Board who acts jointly with a proxy or proxy acting within the
limits of the granted power of attorney,
two proxies acting jointly,
proxies acting alone or jointly within the limits of the powers of attorney
granted.
The Bank's Statute did not grant the Management Board any special rights to
issue or buy shares. However, on 31 January 2020, the Extraordinary General
Meeting of the Bank conditionally authorized the Management Board to acquire
the Bank's own shares from persons covered by the incentive program. The EGM
agreed that the Management Board should create a reserve capital, which it will
allocate entirely to the acquisition of own shares. The decision of the EGM came
into force after obtaining the consent of the PFSA for the above activities.
Decisions of the Management Board take the form of resolutions and are made
by an absolute majority of votes cast in the presence of at least half of the
members of the Management Board. Board meetings are usually held once a
week or more frequently if needed. Members of the Management Board may
gather for a meeting of the Management Board in one place or communicate
using means of direct remote communication.
Management Board meetings in 2022 were held in a hybrid model.: 67 meetings
of the Bank's Management Board were held, including 10 written. Members of
the Management Board adopted 126 resolutions.
Introduction
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Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
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Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 204
Remuneration of the Management Board and Supervisory Board
[2-19], [2-20]
According to the Remuneration Policy for Members of the Bank's Supervisory Board, only fixed remuneration applies to
members of the Supervisory Board and its amount is determined by the Bank's General Meeting. The General Stakeholders’
Meeting adopts the Remuneration Policy in place at the Bank and is responsible for determining the remuneration for
Supervisory Board members (the level of remuneration is approved by a resolution of the General Meeting). At the meeting
adopting the Remuneration Policy, shareholders may submit their comments and opinions for inclusion in the final
document. The Bank does not engage external remuneration consultants.
Pursuant to the Remuneration Policy for Persons with Material Impact on the Risk Profile of BNP Paribas Bank Polska S.A.:
the remuneration paid to persons with a material impact on the Bank's risk profile is adequate, i.e. reflects their
contribution to the achievement of the Bank's objectives, their effort and the best market practice for rewarding persons
in similar positions, as adopted on the Polish market, as well as takes into account the appropriate ratio of fixed
remuneration to variable remuneration.
in accordance with the Policy, it is possible to grant variable remuneration, occurring once for the recruitment of persons
to positions identified as having a material impact on the Bank's risk profile, where the Bank has a sound and solid capital
base, and is restricted to the first year of employment (so-called sign on bonus).
severance payments and benefits of a similar nature, to the extent that they are paid in accordance with applicable law
or result from a final court judgment or a settlement concluded before a court of law, are not subject to the deferral and
distribution rules for remuneration expressed in the form of shares in the Bank.
Taking into account the objective of the SFDR Regulation and considering the Bank's commitment to environmental issues,
as well as the Bank's efforts to implement the principles of social responsibility, including ensuring that the Bank's HR
policy is in line with the best practices in the market, the Bank intends to ensure that this Policy is consistent with the
strategy for integrating sustainability risks into the Bank's operations. Once the indicated strategy has been implemented
at the Bank, the variable remuneration rules for persons performing portfolio management or investment advisory
activities within the meaning of the SFDR will take into account the principle of not encouraging excessive risk-taking with
regard to sustainability risks and will be linked to risk-adjusted performance.
Under the current Labour Code, “a clawback mechanism” does not apply at the Bank.
The Annual General Meeting of Shareholders adopts both the Remuneration Policy for the members of the Supervisory
Board of BNP Paribas Bank Polska S.A. and the Remuneration Policy for persons with a material influence on the risk profile
of BNP Paribas Bank Polska S.A. (including members of the Bank's Management Board).
The Bank has a Remuneration Committee whose responsibilities include the following:
monitoring the level and structure of remuneration for persons employed as members of the Bank's Management Board,
determining the content of contracts for the performance of the functions of members of the Bank's Management Board,
submitting annual information to the Supervisory Board on the employment and remuneration structure at the Bank,
analysing the possibility of selecting external remuneration consultants whose duties may include providing advice and
support to the Supervisory Board.
Individual data on remuneration paid in during the year for individual Management Board Members are as follows:
Table 112. Remuneration paid to Management Board members in 2022
1
thousand PLN
Period of service
Basic
remuneratio
n
Variable
remuneration
paid during
the year
Phantom
shares
Issued
shares
2
Additional
benefits
Total
Name and Surname
from
to
Przemysław Gdański
01.01.2022
31.12.2022
2,408
1,204
114
541
164
4,431
Jean-Charles Aranda
01.01.2022
31.12.2022
1,076
370
51
141
282
1,920
André Boulanger
01.01.2022
31.12.2022
1,144
668
9
194
160
2,175
Przemysław Furlepa
01.01.2022
31.12.2022
1,215
447
50
164
246
2,122
Wojciech Kembłowski
01.01.2022
31.12.2022
1,185
448
107
193
125
2,058
Kazimierz Łabno
01.01.2022
31.12.2022
945
289
-
115
115
1,464
Magdalena Nowicka
01.01.2022
31.12.2022
1,050
150
-
-
92
1,292
Volodymyr Radin
01.01.2022
31.12.2022
755
178
-
57
788
1,778
Agnieszka Wolska
01.01.2022
31.12.2022
1,070
45
-
-
53
1,168
Total
10,848
3,799
331
1,405
2,025
18 408
1 remuneration paid to the Management Board Members for the period of performing duties in the Management Board
2 value of shares issued according to the valuation in the actuarial report
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results
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information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 205
Table 113. Remuneration paid to Management Board members in 2021
1
thousand PLN
Period of service
Basic
Remunerati
on
Variable
remuneration
paid during
the year
Phanto
m
shares
Issued
shares
2
Additional
benefits
Total
Name and Surname
from
to
Przemysław Gdański
01.01.2021
31.12.2021
2,132
886
81
345
147
3,591
Jean-Charles Aranda
01.01.2021
31.12.2021
985
294
36
171
260
1,746
André Boulanger
01.01.2021
31.12.2021
1,068
242
6
176
129
1,621
Przemysław Furlepa
01.01.2021
31.12.2021
1,080
286
36
206
214
1,822
Wojciech Kembłowski
01.01.2021
31.12.2021
1,045
392
76
236
107
1,856
Kazimierz Łabno
01.01.2021
31.12.2021
890
128
-
117
106
1,241
Magdalena Nowicka
01.01.2021
31.12.2021
960
-
-
-
83
1,043
Volodymyr Radin
01.01.2021
31.12.2021
682
88
-
28
647
1,445
Jerzy Śledziewski
3
01.01.2021
24.03.2021
852
336
61
234
4764
1,959
Agnieszka Wolska
01.09.2021
31.12.2021
340
-
-
-
80
420
Total
10,034
2,652
296
1,513
2,249
16,744
1 remuneration paid to the Management Board Members for the period of performing duties in the Management Board
2 value of shares issued according to the valuation in the actuarial report
3 the remuneration given until the date of termination of the employment relationship
4 includes severance pay already paid on termination of the employment contract and compensation for unused annual leave
Members of the Management Board concluded with BNP Paribas Bank Polska S.A. employment contract for an indefinite
period. Terms of contracts were prepared in accordance with the currently applicable laws and internal regulations.
Members of the Management Board signed non-competition agreements while working with BNP Paribas Bank Polska S.A.
Additionally, 2 members of the Management Board are bound by non-competition agreements for 9 months after
termination of work. Members of the Management Board of BNP Paribas Bank Polska S.A. do not receive remuneration for
acting as governing bodies of subsidiaries of the BNP Paribas Bank Polska S.A. Group.
According to individual employment contracts, Management Board members have the right to life insurance and a medical
care package as well as compensation bonuses. In addition, the additional benefits due to members of the Management
Board (based on individual employment contracts) include, among others:
housing allowance specified in the employment contract,
covering or reimbursement of costs incurred in connection with posting to work in Poland,
covering the costs of private travel to the posting country for a Member of the Management Board and members of the
family living in Poland (at a specific frequency),
covering the costs of attending children to schools in Poland,
one-time allowance related to a change of place of work.
BNP Paribas Bank Polska S.A. has no liabilities arising from pensions and benefits of a similar nature towards former
managers and supervisors.
Personal data on remuneration paid in a given year for individual members of the Supervisory Board are presented in the
tables below:
Table 114. Remuneration paid to Supervisory Board members in 2022
thousand PLN
Period of service
Remuneration
on account of the office
held
on the Supervisory
Board
1
On the account of office previously
held in the Management Board
Name and Surname
from
to
Variable
remuneration
Phantom
shares
Lucyna Stańczak-Wuczyńska
01.01.2022
31.12.2022
476
-
-
Jean-Paul Sabet
01.01.2022
31.12.2022
252
-
-
Francois Benaroya
01.01.2022
31.12.2022
-
-
36
Jarosław Bauc
01.01.2022
31.12.2022
209
-
-
Małgorzata Chruściak
01.01.2022
31.12.2022
209
-
-
Géraldine Conti
01.01.2022
31.12.2022
-
-
-
Stefaan Decraene
01.01.2022
31.12.2022
-
-
-
Magdalena Dziewguć
01.01.2022
31.12.2022
161
-
-
Vincent Metz
01.01.2022
31.12.2022
-
-
-
Piotr Mietkowski
01.01.2022
31.12.2022
-
-
-
Khatleen Pauwels
01.01.2022
31.12.2022
-
-
-
Mariusz Warych
01.01.2022
31.12.2022
322
-
-
Total
1,629
-
36
1 concerns only remuneration for work in the Supervisory Board
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Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 206
Table 115. Remuneration paid to Supervisory Board members in 2021
thousand PLN
Period of service
Remuneration on
account of the office
held on the supervisory
Board
1
On the account of office previously
held in the Management Board
Name and Surname
from
to
Variable
remuneration
Phantom
shares
Lucyna Stańczak-Wuczyńska
01.01.2021
31.12.2021
365
-
-
Józef Wancer
01.01.2021
30.06.2021
350
-
-
Jean-Paul Sabet
01.01.2021
31.12.2021
21
-
-
Francois Benaroya
01.01.2021
31.12.2021
-
34
26
Jarosław Bauc
01.01.2021
31.12.2021
190
-
-
Małgorzata Chruściak
01.07.2021
31.12.2021
73
-
-
Géraldine Conti
01.07.2021
31.12.2021
-
-
-
Stefaan Decraene
01.01.2021
31.12.2021
-
-
-
Magdalena Dziewguć
01.01.2021
31.12.2021
153
-
-
Sofia Merlo
01.01.2021
24.03.2021
-
-
-
Vincent Metz
01.01.2021
31.12.2021
-
-
-
Piotr Mietkowski
01.01.2021
31.12.2021
-
-
-
Khatleen Pauwels
01.07.2021
31.12.2021
-
-
-
Stéphane Vermeire
01.01.2021
31.05.2021
-
-
-
Mariusz Warych
01.01.2021
31.12.2021
305
-
-
Total
1,457
34
26
1 concerns only remuneration for work in the Supervisory Board
Information on the remuneration of the Management Board and the Supervisory Board members can be found also in note
52 Related party transactions in the Stand-alone Financial Statements of BNP Paribas Bank Polska S.A. for the year ended
31 December 2022.
On 24 August 2018, at the Extraordinary General Meeting, a resolution was adopted as a result of which a member of the
Supervisory Board who is simultaneously employed in any entity within the BNP Paribas SA Capital Group or in any
subsidiary of any entity being part of the BNP Paribas SA Capital Group, will not be entitled to remuneration for performing
the function of a member of the Supervisory Board of BNP Paribas Bank Polska S.A.
Diversity policy
[2-10]
Diversity policy for supervisory, management and administrative bodies
The Bank has a diversity policy in relation to members of the Supervisory Board, which is formally a part of the Policy for
assessing the suitability of members of the Supervisory Board of BNP Paribas Bank Polska S.A. and the diversity policy in
relation to members of the Management Board, which is formally a part of the Policy for assessing the suitability of
members of the Management Board and key function holders at BNP Paribas Bank Polska S.A.
Diversity policies with respect to members of the Management Board and the Supervisory Board are aimed at reaching a
wide range of competences when appointing members of the Supervisory Board and the Management Board, in order to
gain different points of view and experience and to enable independent opinions and reasonable decisions within the body,
thus ensuring high quality performance of tasks by management and supervisory bodies.
Members of the Management Board are appointed by the Supervisory Board in an open vote, taking into account the
provisions of the Bank's Statutes and taking into account the results of the suitability assessment carried out in accordance
with the Suitability Assessment Policy. The individual suitability assessment is conducted taking into account the following
criteria:
knowledge, skills and professional experience in the field:
- significant areas of the Bank's business and the main risks associated with that business, including ESG and ML/FT risks
that may arise from the Bank's activities or those of its Clients and counterparties,
- significant areas of sector/financial expertise, including financial and capital markets, solvency and models,
- management and strategic planning skills and experience,
- information technology and cyber security,
- local and regional markets,
- financial accounting and reporting,
- legal and regulatory environment,
- management of national groups and the risks associated with the structures of such groups;
- risk management, including ESG and ML/FT risks, as well as management of risks of non-compliance with universally
binding or internal laws and internal audit recommendations;
with regard to the guarantee of the proper performance of the function entrusted, taking into account, inter alia:
- reputation,
Introduction
About us
Environment
Strategy and
prospects
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execution
Financial
results
Risks and
opportunities
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governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 207
- financial standing,
- criminal record,
- ability to exercise independent judgement, including personal competence (behavioural requirements);
- the existence of possible conflicts of interest;
in terms of devoting sufficient time to the performance of the function entrusted, taking into account:
- the number of other activities or functions held at the same time,
- the actual participation of that person in the works of the Management Board
The Bank aims to ensure sufficient diversity in the composition of the Management Board in terms of the following criteria:
gender,
age,
geographical origin,
field of education, work experience and length of experience,
skills or expertise.
The Bank's target is to reach a share of underrepresented gender on the Management Board of at least 30% of the
composition by 2025.
In terms of substantive criteria, the diversity strategy ensures the selection of people with diverse knowledge, skills and
experience, adequate to the functions they perform and the duties entrusted to them, which complement each other at the
level of the entire Supervisory Board and the Management Board. These criteria are subject to verification in the suitability
assessment process described in the above-mentioned Suitability Assessment Policies. In addition, diversity includes and
uses differences to achieve the best results, which, in addition to knowledge, competences and professional experience,
result from gender, age and geographical origin.
The Bank attaches great importance to the real implementation of diversity, including ensuring the appropriate
participation of women in the Bank's bodies. The Bank has made a strategic decision to ensure the participation of 30% of
women on the Management Board by 2025 and to maintain the share of the underrepresented sex on the Supervisory
Board at the level of at least 30%.
The table below presents the current diversity in terms of gender, age and seniority in the Bank within the members of the
Supervisory Board, Management Board and persons holding key managerial positions.
Table 116. Diversity in terms of gender, age and seniority at the Bank*
Gender
Women
Men
Total
Supervisory Board
5
7
12
Management Board
2
7
9
Key Managers
47
72
119
Age
<30
30-60
>50
Total
Supervisory Board
0
3
9
12
Management Board
0
3
6
9
Key Managers
0
88
31
119
Years of experience at the Bank
<5
5-10
10-15
15-20
20-25
>25
Total
Supervisory Board
7
5
0
0
0
0
12
Management Board
4
4
1
0
0
0
9
Key Managers
21
17
26
31
17
7
119
Total
32
26
27
31
17
7
140
* the data was prepared based on the full employment status at the Bank, i.e. including employees on maternity and childcare leaves and longer sick leaves
System of control and risk management in the process of financial statements preparation
The Bank adopted an Accounting Policy consistent with the International Financial Reporting Standards approved by the
European Union and other specific internal acts regarding the recording of events and the processes for preparing
accounting and reporting data. The Financial Accounting Division and the Management Accounting and Investor Relations
Division, supervised by the Vice-President of the Management Board responsible for Finance are responsible for the
preparation of financial statements, periodic financial reporting and providing management information. The financial
statements are adopted by resolution and approved for publication by the Bank's Management Board.
The Bank's financial reporting process is based on accounting data, the preparation of which in source systems and in
reporting databases is subject to formal operational and acceptance procedures. The reporting data are subject to control
mechanisms, such as reconciliation of the reporting data with the accounting books, analytical data and relevant
documentation. The process of month-end closing and preparation of accounting and reporting data is carried out and
monitored on the basis of a schedule that defines the various stages of the process along with their owners, who are
responsible for the correct and timely completion of the various activities.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 208
As part of risk management in the process of preparing financial statements, the Bank monitors, on an ongoing basis,
changes in laws and regulations relating to financial reporting of banks and updates the accounting principles applied and
the scope and form of disclosures in the financial statements accordingly, as well as making the required changes to the IT
systems.
The Bank's consolidated financial statements are prepared on the basis of the Bank's separate data and information
received from its subsidiaries, in the form of consolidation packages. The Financial Accounting Division verifies the
information received and also maintains ongoing communication with the financial services of the subsidiaries to ensure
the best possible quality and consistency of the data received.
A key role in the process of evaluating the Bank's financial statements is played by the Audit Committee, which monitors
the financial reporting process and the independence of the auditor and the entity authorized to audit financial statements
and recommends to the Supervisory Board the approval or rejection of the annual financial statements. The annual
financial statements, following a positive recommendation from the Audit Committee and the Supervisory Board, are
presented to the General Meeting of Shareholders for approval.
Information on certified auditor
The Supervisory Board of BNP Paribas Bank Polska S.A. selects the entity authorized to audit the financial statements of
BNP Paribas Bank Polska S.A. and the BNP Paribas Bank Polska S.A. Group, in accordance with the provisions of the Bank's
Statute and on the recommendation of the Audit Committee.
On 12 December 2019, the Bank's Supervisory Board selected Mazars Audyt Sp. z o.o. as an audit company. On March 24,
2020 The Bank and Mazars Audyt Sp. z o.o. concluded an agreement for the period necessary to audit and review the Bank's
standalone financial statements and the Group's consolidated financial statements together with reporting packages for
2020-2021.
On 9 December 2021, the Bank's Supervisory Board selected the existing audit firm to audit and review the financial
statements of the Bank and the Group together with the reporting packages for 2022-2023.
On June 2, 2022 The Bank extended the agreement with Mazars Audyt Sp. z o.o. for the period necessary to review and
audit the financial statements for the years 2022-2023.
Mazars Audyt Sp. z o.o. with its registered office in Warsaw at 18 Piękna Street is entered on the list of audit firms under
number 186. The list is maintained by the National Council of Statutory Auditors.
Table 117. Auditor’s fee by service type
12 months ended 31.12.2022
12 months ended 31.12.2021
thousand PLN
(including VAT)
Bank
Subsidiaries
Total
Bank
Subsidiaries
Total
Statutory audit of financial statements
1,067
140
1,207
975
181
1,156
Other assurance services*
1,140
540
1,680
989
439
1,428
Total
2,207
680
2,887
1,964
620
2,584
* This category includes the remuneration of the statutory auditor who reviewed the interim financial statements, reviewed and audited the reporting packages for the purposes of consolidation of the
BNP Paribas Group. This category also includes: review and audit of funds managed by the TFI subsidiary
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 209
Imię Nazwisko Stanowisko
Robert Jaroszyński, Senior Office Space Management Specialist
About the Report
Scope of non-financial reporting 210
GRI Table 212
EU Taxonomy 214
TCFD Recommendation 214
SFDR indicators (Sustainable Finance Disclosure Regulation) 214
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 210
Scope of non-financial reporting
[2-2] [2-3] [2-4] [2-5]
BNP Paribas Bank Polska S.A. has been publishing annual reports since 2011
containing non-financial data on the management of ESG (E-environment, S-
social, G-governance), i.e. environmental, social and responsible business
practices and corporate governance.
Starting in 2019, the Bank publishes integrated annual reports. The Report of
the Management Board on the activities of the BNP Paribas Bank Polska S.A.
Capital Group in 2022 (covering the Report of the Management Board of BNP
Paribas Bank Polska S.A. in 2022) provides a comprehensive view of the business
integrating financial and business performance with environmental, social and
governance (ESG) impact aspects. The Report of the Management Board takes
into account market best practices and addresses national and international
guidelines relevant to the business for reporting non-financial information:
Global Reporting Initiative (GRI) 2021 - international non-financial reporting GRI
Standards. Standards, the ESG Reporting Guidelines prepared by the Warsaw
Stock Exchange (WSE) in cooperation with the European Bank for Reconstruction
and Development (EBRD), the International Integrated Reporting Council (IIRC)
Guidelines, the Task Force on Climate-related Financial Disclosures (TCFD)
Recommendations on Climate Risk Reporting and the EU Taxonomy Regulation.
For the purpose of complying with Article 49b(9) of the Accounting Act, the Bank
has separately prepared the Report on Non-Financial Information of the BNP
Paribas Bank Polska S.A. Group in 2022 (covering non-financial information of
BNP Paribas Bank Polska S.A. in 2022), which takes into account the non-
financial information required by the provisions of the Act.
BNP Paribas Bank Polska S.A. annual reports for previous years, including those
published since 2011 containing non-financial information, are available on the
Bank's website.
Data presented in this Report refer to the period from 1 January to 31 December
2022, unless otherwise stated in the Report. The report presents the activities
and financial and non-financial data of the BNP Paribas Bank Polska S.A. Group
comprising BNP Paribas Bank Polska S.A. as the parent company and the
companies comprising the BNP Paribas Bank Polska S.A. Group as at 31
December 2022. These are:
BNP Paribas Towarzystwo Funduszy Inwestycyjnych S.A.
BNP Paribas Leasing Services Sp. z o.o.
BNP Paribas Group Service Center S.A.
Bankowy Fundusz Nieruchomościowy Actus Sp. z o.o.
Campus Leszno Sp. z o.o.
BGZ Poland ABS1 Designated Activity Company.
There were no significant changes in the size or supply chain of the Bank during
the reporting period. In terms of structure, the subsidiary BNP Paribas Solutions
Sp. z o.o. was deleted from the KRS register in November 2022. The data
reported in previous years do not require adjustments.
The report was subjected to external verification, which covered selected
indicators listed in the GRI table and marked with „V". The verification was
carried out by Deloitte Audyt sp. z o.o. sp.k..
The services do not constitute auditing activities within the meaning of the Act
of 11 May 2017 on Statutory Auditors, Audit Firms and Public Supervision.
Deloitte Audyt Sp. z o.o. sp. k. is independent of the Bank.
The report on the performance of the independent assurance service is available
on the website of BNP Paribas Bank Polska S.A.
The report is issued on an annual basis. The previous integrated report was
published on 2 March 2022.
The reporting process
[3-1]
We have included in the Report the relevant information on the Bank's strategy,
management, performance and prospects. This information was presented
taking into account the economic, social and environmental context. In
accordance with the guidelines of the NFRD Directive and the ESG Reporting
Guidelines of the Stock Exchange and the European Bank for Reconstruction and
Development, we have applied a two-fold materiality perspective both in the
process of identifying material reporting topics and in the way they are
presented in the Report. In doing so, we have taken into account actual and
potential ESG risks and opportunities that could have a material impact on the
Bank's operations and financial performance, as well as the Bank's impact on
sustainability issues. In accordance with the GRI Standards the process of
identifying material reporting topics was carried out in three stages:
identification, prioritisation and validation.
Identification
At the identification stage, we identified key issues in the Bank's economic,
environmental and social responsibility. We also analysed opinions of the Bank's
stakeholders, guidelines for the financial sector, as well as trends in our
industry.
The following activities were carried out in preparation for the reporting
process:
benchmark of the most important ESG issues in reports and strategies of
Polish and foreign banks,
benchmark of ESG ratings and SASB guidelines on the most important ESG
issues for the financial sector,
Prioritisation
In order to prioritise key issues, we conducted a survey among the Bank's
internal stakeholders. The survey was completed by employees of the
companies and organisational units covered by the reporting. A dialogue session
with external stakeholders was also held.
Validation
The issues identified by the Bank and indicated in the survey were verified and
clarified by representatives of the Bank's management, including members of
the Sustainability Council. The validation of the reporting topics took place
during a strategy workshop as part of the work on the Report. In the course of
the review of the materiality of non-financial reporting topics, thirteen most
significant issues were identified, which we have indicated below
[3-2]
All reporting topics that were highlighted as material in the process of
determining the content of the Report were considered according to the
principle of double materiality. In describing the Bank's most material non-
financial reporting topics, we present the approach to managing these topics as
well as the corresponding indicators.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 211
The key topics list
E – environmental impact
Offering products and services that respond to social and/or environmental
challenges.
Reducing the negative environmental impact of operations.
Reducing the carbon footprint of the loan portfolio.
BNP Paribas Bank's strategic commitments and their implementation in the
fight against climate change.
S – social impact
Digitisation of banking services and products.
Education and development of employees.
Offering innovative banking services and products.
Simple and transparent communication.
Friendly workplace, responsible employment management.
Charitable and philanthropic activities (including BNP Paribas Foundation
projects).
G – corporate governance
Ethics in internal and external relations.
Respect for human rights in business.
Responsible selling and self-regulation of products and services.
Monitoring and management of ESG risks: environmental, social and corporate
governance risks in the Bank's and its Clients' operations.
The list of significant topics has only changed with regard to corporate
governance. In 2022, the impact of the Covid-19 pandemic on the Bank's
operations and performance has become less relevant, so this aspect is not on
the list. Additionally, due to the announcement of the new GObeyond strategy,
the topic of the previous Fast Forward Strategy, which was summarised in the
previous 2021 report, does not appear on the list. The other aspects are
unchanged compared to the previous year.
Contact
[2-3]
Thank you for reading our report. If you have any questions or suggestions
regarding the content we report, please do not hesitate to contact us:
relacjeinwestorskie@bnpparibas.pl or csr@bnpparibas.pl.
More information is available at: https://www.bnpparibas.pl/relacje-
inwestorskie and https://www.bnpparibas.pl/csr
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 212
GRI Table
GRI
standard
number
Topic
standard
GRI
version
Disclosure
number
Name of indicator
External
assurance
Page number
GRI 2
General
Disclosures
2021
2-1
Organizational details
V
8
GRI 2
General
Disclosures
2021
2-2
Entities included in the organization’s
sustainability reporting
V
210
GRI 2
General
Disclosures
2021
2-3
Reporting period, frequency and contact
point
V
210, 211
GRI 2
General
Disclosures
2021
2-4
Restatements of information
V
210
GRI 2
General
Disclosures
2021
2-5
External assurance
V
210
GRI 2
General
Disclosures
2021
2-6
Activities, value chain and other business
relationships
V
8, 177
GRI 2
General
Disclosures
2021
2-7
Employees
V
93
GRI 2
General
Disclosures
2021
2-8
Workers who are not employees
V
99
GRI 2
General
Disclosures
2021
2-9
Governance structure and composition
V
192. 196
GRI 2
General
Disclosures
2021
2-10
Nomination and selection of the highest
governance body
V
200, 206
GRI 2
General
Disclosures
2021
2-11
Chair of the highest governance body
V
194
GRI 2
General
Disclosures
2021
2-12
Role of the highest governance body in
overseeing the management of impacts
V
33, 35, 194
GRI 2
General
Disclosures
2021
2-13
Delegation of responsibility for managing
impacts
V
35
GRI 2
General
Disclosures
2021
2-14
Role of the highest governance body in
sustainability reporting
V
35, 192, 197
GRI 2
General
Disclosures
2021
2-15
Conflicts of interest
V
174, 176, 190
GRI
standard
number
Topic
standard
GRI
version
Disclosure
number
Name of indicator
External
assurance
Page number
GRI 2
General
Disclosures
2021
2-16
Communication of critical concerns
V
174
GRI 2
General
Disclosures
2021
2-17
Collective knowledge of the highest
governance body
V
35, 194, 201
GRI 2
General
Disclosures
2021
2-18
Evaluation of the performance of the
highest governance body
V
200
GRI 2
General
Disclosures
2021
2-19
Remuneration policies
V
204
GRI 2
General
Disclosures
2021
2-20
Process to determine remuneration
V
204
GRI 2
General
Disclosures
2021
2-21
Annual total compensation ratio
V
102
GRI 2
General
Disclosures
2021
2-22
Statement on sustainable development
strategy
V
4, 5
GRI 2
General
Disclosures
2021
2-23
Policy commitments
V
36, 107, 165, 178
GRI 2
General
Disclosures
2021
2-24
Embedding policy commitments
V
36, 58, 174, 176
GRI 2
General
Disclosures
2021
2-25
Processes to remediate negative impacts
V
175
GRI 2
General
Disclosures
2021
2-26
Mechanisms for seeking advice and
raising concerns
V
175
GRI 2
General
Disclosures
2021
2-27
Compliance with laws and regulations
V
184
GRI 2
General
Disclosures
2021
2-28
Membership associations
V
28
GRI 2
General
Disclosures
2021
2-29
Approach to stakeholder engagement
V
27
GRI 2
General
Disclosures
2021
2-30
Collective bargaining agreements
V
94
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 213
GRI
standard
number
Topic
standard
GRI
version
Disclosure
number
Name of indicator
External
assurance
Page number
GRI 3
Material
Topics
2021
3-1
Process to determine material topics
V
210
GRI 3
Material
Topics
2021
3-2
List of material topics
V
210
GRI 3
Material
Topics
2021
3-3
Management of material topics
V
58, 71, 75, 81, 91,
93, 103, 165, 168,
174, 178
GRI 203
Indirect
Economic
Impacts
2016
203-1
Infrastructure investments and services
supported
58, 72
GRI 204
Procurement
Practices
2016
204-1
Proportion of spending on local suppliers
177
GRI 205
Anti-
corruption
2016
205-2
Communication and training about anti-
corruption policies and procedures
V
176
GRI 205
Anti-
corruption
2016
205-3
Confirmed incidents of corruption and
actions taken
V
176
GRI 302
Energy
2016
302-1
Energy consumption within the
organization
V
84
GRI 302
Energy
2016
302-4
Reduction of energy consumption
83
GRI 303
Water
2016
303-3
Water withdrawal
85
GRI 305
Emissions
2016
305-1
Direct GHG emissions by weight Direct
(Scope 1) GHG emissions
V
81
GRI 305
Emissions
2016
305-2
Energy indirect (Scope 2) GHG emissions
by weight
V
81
GRI 305
Emissions
2016
305-5
Reduction of GHG emissions
81
GRI 308
Procurement
Practices
2016
308-1
New suppliers screened using
environmental criteria
177
GRI 401
Employment
2016
401-1
New employee hires and employee
turnover
V
99
GRI 402
Employment
2016
402-1
Benefits provided to full-time employees
that are not provided to temporary or
part-time employees
94
GRI
standard
number
Topic
standard
GRI
version
Disclosure
number
Name of indicator
External
assurance
Page number
GRI 401
Employment
2016
401-2
Occupational health and safety
management system
V
102
GRI 403
Occupational
Health and
Safety
2018
403-1
Hazard identification, risk assessment,
and a description of the processes in
case of incidents/accidents Hazard
identification, risk assessment, and
incident investigation
102
GRI 403
Occupational
Health and
Safety
2018
403-2
Occupational health services
V
102
GRI 403
Occupational
Health and
Safety
2018
403-3
Worker participation, consultation, and
communication on
occupational health and safety
102
GRI 403
Occupational
Health and
Safety
2018
403-4
Worker training on occupational health
and safety
102
GRI 403
Occupational
Health and
Safety
2018
403-5
Promotion of worker health
102
GRI 403
Occupational
Health and
Safety
2018
403-6
Prevention and mitigation of
occupational health and safety
impacts directly linked by business
relationships
V
102
GRI 403
Occupational
Health and
Safety
2018
403-7
Work-related injuries
102
GRI 404
Training and
Education
2016
404-1
Average hours of training per year per
employee by gender and employee
category Average hours of training per
year per employee
V
104
GRI 404
Training and
Education
2016
404-2
Programs for upgrading employee skills
and transition assistance programs
V
104
GRI 404
Training and
Education
2016
404-3
Percentage of employees receiving
regular performance and career
development reviews
V
104
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 214
GRI
standard
number
Topic
standard
GRI
version
Disclosure
number
Name of indicator
External
assurance
Page number
GRI 405
Diversity and
Equal
Opportunity
2016
405-1
Diversity of governance bodies and
employees
V
106
GRI 406
Non-
discrimination
2016
406-1
Total number of incidents of
discrimination and remediation actions
taken Incidents of discrimination and
corrective actions taken
V
105
GRI 414
Procurement
Practices
2016
414-1
Percentage of new suppliers who were
selected taking into account meeting the
criteria of hiring practices
177
GRI 417
Marketing
and Labelling
2016
417-2
Total number of incidents of non-
compliance with regulations and
voluntary codes concerning product and
service information and labelling by
results Incidents of non-compliance
concerning product and service
information and labeling
V
184
GRI 417
Marketing
and Labelling
2016
417-3
Total number of incidents of non-
compliance with regulations and
voluntary codes concerning marketing
communications, including advertising,
promotion, and sponsorship by results.
Incidents of non-compliance
concerning marketing communications
V
184
GRI 418
Customer
Privacy
2016
418-1
Total number of substantiated
complaints concerning breaches of
customer privacy and losses of customer
data
V
184
EU Taxonomy
Taxonomic disclosures
67-68
TCFD recommendation
Task Force on Climate-related Financial Disclosures
168-172
SFDR indicators (Sustainable Finance Disclosure Regulation)
Indicator
number
Name of indicator
Page number
Climate and other environment-related indicators
SFDR 1
GHG emissions
81-82
SFDR 2
Carbon footprint
81-82
SFDR 3
GHG intensity
81-82
SFDR 4
Exposure to companies active in the fossil fuel sector
165-167
SFDR 5
Share of non-renewable energy consumption and production
83-85
SFDR 6
Energy consumption intensity per high impact climate sector
83-85
SFDR 7
Activities negatively affecting biodiversity sensitive areas
In 2022, no such activities.
SFDR 8
Emissions to water
In 2022, no emitted pollutants to water.
SFDR 9
Hazardous waste ratio
No hazardous or radioactive waste in
2022.
Social and employee, respect for human rights, anti-corruption and anti-bribery indicators
SFDR 10
Violations of UN Global Compact principles and Organisation for
Economic Cooperation and Development (OECD) Guidelines for
Multinational Enterprises
No confirmed violations in 2022
SFDR 11
Processes and compliance mechanisms to monitor compliance with UN
Global Compact principles and OECD Guidelines for Multinational
Enterprises
174-175
SFDR 12
Unadjusted gender pay gap
101
SFDR 13
Board gender diversity
106
SFDR 14
Exposure to controversial weapons (antipersonnel mines, cluster
munitions, chemical weapons and biological weapons)
165-167
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 215
Imię Nazwisko Stanowisko
Przemysław Mroczek, Compliance Systems Analysis and Implementation Expert
Additional information
Post-balance sheet events 216
Statements of the Management Board of BNP Paribas Bank Polska S.A. 217
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 216
Post-balance sheet events
January 2023
17.01. - Extraordinary General Meeting of Shareholders - adoption of
resolutions on, among others:
- assessment the collective adequacy of the Bank's Supervisory Board in
connection with the change in the composition of the Supervisory Board,
- appointment of Mr Grégory Raison as a member of the Bank's Supervisory
Board with effect from 17 January 2023 until the end of the current five-year
joint term of office of the members of the Bank's Supervisory Board,
- amendments to the Bank's Statutes.
17.01. - the Bank received the Decision of UOKiK on the fine imposed on the
Bank in connection with practices infringing collective consumer interests in
the field of credit holidays, details are presented in Chapter Litigation and
claims.
February 2023
16.02. - the opinion of the Advocate General of the CJEU was issued on
whether, in the event of cancellation of the loan agreement, the parties are
entitled to any claim for the use of capital by the other party (entrepreneur
and consumer), details are presented in Chapter Litigation and claims.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 217
Statements of the Management Board of BNP Paribas Bank Polska S.A.
Accuracy and reliability of the statements presented
The Management Board of BNP Paribas Bank Polska S.A. hereby declares that to
the best of its knowledge:
Separate financial statements of BNP Paribas Bank Polska S.A. for the period of
12 months ended 31 December 2022 and Consolidated financial statements of
the Capital Group of BNP Paribas Bank Polska S.A. for the period of 12 months
ended 31 December 2022 and the comparative data was prepared in
accordance with the applicable accounting principles, and they reflect in a
true, reliable and clear way the financial position as well as the financial
result of the Bank and the Bank's Capital Group.
Management Board Report on the activities of the Capital Group of BNP
Paribas Bank Polska S.A. in 2022 including the Management Board Report on
the activities of BNP Paribas Bank Polska S.A. in 2022 contains a true picture of
the development and achievements and situation of the Bank’s Capital Group,
including a description of the basic risks and threats.
Information of the Management Board, prepared on the basis of a statement of
the Supervisory Board or a supervising person, on the selection of an audit firm
to audit the annual financial statements and the annual consolidated financial
statements in accordance with the provisions
The Management Board of BNP Paribas Bank Polska S.A. declares that Mazars
Audyt Spółka z ograniczoną odpowiedzialnością with its registered office in
Warsaw (’’Mazars’’) was selected by the Supervisory Board of the Bank in
accordance with the law, as an entity authorised to audit the Consolidated
financial statements of the Capital Group of BNP Paribas Bank Polska S.A. for
2022 and the Separate financial statement of BNP Paribas Bank Polska S.A. for
2022.
Mazars and the members of the audit team met the conditions for preparing an
impartial and independent audit report on the annual financial statements and
the audit report on the consolidated annual financial statements in accordance
with applicable regulations, professional standards and professional ethics.
The Management Board of BNP Paribas Bank Polska S.A. declares that the
binding law provisions related to the rotation of the audit firm and the key
statutory auditor and the mandatory grace periods have been respected and
that the company has in place the "Policy on the selection of the audit firm at
BNP Paribas Bank Polska S.A." and the "Audit firm selection procedure at BNP
Paribas Bank Polska S.A." and the "Policy on the provision of permitted non-
audit services by the audit firm, by affiliates of the audit firm and members of
the audit firm's network at BNP Paribas Bank Polska S.A.".
Position of the Bank’s Management Board on the possibility of meeting
previously published forecasts for a given year
The Bank did not publish financial forecasts for 2022.
Introduction
About us
Environment
Strategy and
prospects
GObeyond strategy
execution
Financial
results
Risks and
opportunities
Corporate
governance
Additional
information
Report of the Management Board on the activities of BNP Paribas Bank Polska S.A. Capital Group in 2022 218
SIGNATURES OF MANAGEMENT BOARD MEMBERS OF BNP PARIBAS BANK POLSKA S.A.
28.02.2023
Przemysław Gdański
President
of the Management Board
qualified electronic signature
28.02.2023
Jean-Charles Aranda
Vice-President
of the Management Board
qualified electronic signature
28.02.2023
André Boulanger
Vice-President
of the Management Board
qualified electronic signature
28.02.2023
Przemysław Furlepa
Vice-President
of the Management Board
qualified electronic signature
28.02.2023
Wojciech Kembłowski
Vice-President
of the Management Board
qualified electronic signature
28.02.2023
Kazimierz Łabno
Vice-President
of the Management Board
qualified electronic signature
28.02.2023
Magdalena Nowicka
Vice-President
of the Management Board
qualified electronic signature
28.02.2023
Volodymyr Radin
Vice-President
of the Management Board
qualified electronic signature
28.02.2023
Agnieszka Wolska
Vice-President
of the Management Board
qualified electronic signature