Integrated Report 2021

Strategy „Fast Forward”

The main assumption of the new Fast Forward strategy for 2018-2021, adopted by the Bank's Management Board and Supervisory Board in May 2018, was focus on the customer and digital transformation of products, services and processes aimed at accelerating development and increasing profitability.

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The financial strategic objectives that the Bank planned to achieve within the strategy horizon are: a growth rate of the result on banking activity higher than the market, ROE above 10% and C/I ratio at the level ca. 50%.

Business development is based on five key pillars: growth, simplicity, digitalisation, quality and enthusiasm.

The primary driver of development is retail banking. Within this area, the Bank has prepared a new offer for individual customers, together with the modernisation of digital tools (Internet and mobile banking). The selection of products and services will be constantly adjusted to promote a broader range of products to be contracted by the customers. The new acquisition will be supported by expanding cooperation with B2B customers. The Bank’s ambition is to become one of the leaders in corporate and SME banking, to become the first-choice bank for micro-enterprises and to strengthen its position among leaders in private banking.

On the customer side, the Bank will strive to simplify products and communication methods along with the improvement of processes, especially those related to the so-called customer journey. On the business organization side, the Bank will review its internal structures and optimize the sales network.

Achieving a high level of satisfaction and thus customer loyalty will be a priority. On a synthetic level, the Bank aims at doubling the NPS ratio in the horizon of the current strategy. The level of satisfaction is constantly monitored at various levels, enabling improvement of internal processes. Additional support will be provided by systemic promotion of quality parameters in areas related to customer service.

In order to achieve its strategic goals, the Bank will take care of high retention of the best employees and support cooperation and information exchange between business units. The priority will also be to run the business in a socially responsible manner, which is at the same time an element of the brand identity.

In order to enhance cost efficiency, the Bank introduces process automation by means of artificial intelligence. A great deal of effort is put into cyber security and modernisation of IT architecture. Customers will experience better integrated sales and service channels and will receive better-suited product and service proposals.

Realisation of strategic financial targets in 2021

rate of increase
in the net banking
faster than
the market
+2.2% y/y
  • The Group generated an increase in banking income compared to 2020 primarily due to higher commission income, interest income and fair value measurement on hedge accounting. The increase in these income items offset lower results from trading and investment activities.
  • The improvement in commission income was largely made possible by higher sales levels, primarily of products for retail customers.
  • The sector’s net revenues in 2021 recorded an increase of 10.0% y/y. Excluding other income, which was charged to legal risk provisions on CHF housing loans in 2020, the sector’s net income growth y/y would have been 3.6%.
ROE >10% 1.5% (9.9%*)
  • The Bank’s profitability was under pressure primarily due to the negative impact of risk provisions related to CHF housing loan litigation and the continuing negative impacts of the COVID-19 pandemic on the environment in the first half of 2021 (lower customer activity, near-zero interest rates, uncertain macroeconomic outlook).
  • ROE calculated excluding the impact of provisioning for CHF housing loan litigation risk would have been 9.9% (at the level close to the starategic target).
  • The index for the banking sector in 2021 was 4.1%.
C/I around 50% 52.9%
  • The Bank’s efficiency as measured by the cost/income ratio on the reported basis improved by 0.4 p.p. y/y (52.9% vs 53.3%). Excluding the impact of integration costs, the ratio would have improved by 0.6 p.p. This was possible thanks to both revenue growth and the maintenance of cost discipline.
  • The banking sector ratio (including bank tax) for 2021 was 58.8%.
* The value of the ratio calculated excluding the impact of provisioning for the risk of litigation related to CHF housing loans.

GROWTH resources (people, IT and capital) focus on the most profitable products and segments to increase acquisitions, sales and ultimately financial performance
  • Successful customer acquisition, personal account sales in 2021: 321.8 thousand (+25% y/y).
  • Growing retail loan sales in 2021:
    • mortgage loans PLN 6.6 billion (+18% y/y);
    • cash loans PLN 3.6 billion (+32% y/y).
  • PLN 3.9 billion of sustainable (mainly green) financing provided in 2021
  • Over 16 thousand photovoltaic installations financed for prosumers.
  • Participation in significant corporate client transactions:
    • syndicated financing: Ciech (PLN 2.1 billion), Press Glass, (PLN 1.1 billion), Polpharma (PLN 0.8 billion), Cargounit (PLN 0.6 billion), CLIP logistics (EUR 0.14 billion), Arctic Paper (PLN 0.3 billion), Resi4Rent (PLN 0.3 billion), Scanmed (PLN 0.2 billion), post-IPO financing for InPost (PLN 2.75 billion);
    • Bielenda Kosmetyki structured financing package (PLN 215 million);
    • exclusive provider of financing for the construction of a logistics park near Wrocław (EUR 70 million); financing of the acquisition of five logistics parks with a total area of 209,000 m2 by the investment company Polish Logistics LLP;
    • exclusive organiser and dealer of ATAL SA two-year bond issue worth PLN 120 million. Co-organiser and dealer of the record-breaking Ghelamco bond issue worth PLN 285 mln.
  • Significant green financing transactions: investments by Qair Polska (PLN 184 million), acquisition of a portfolio of 130 photovoltaic farms by Aberdeen Standard Investments; R.Power participation in a consortium financing the construction of 7 solar power plants (PLN 242 million); EIB and BNP Paribas Leasing Services agreement to support SME financing in Poland (EUR 200 million).
  • First Sustainability Linked Loan for Raben Group worth EUR 225 million.
  • The 100th structured certificate offered by the Bank Brokerage (first subscription X 2016).
  • Cooperation with reputable partners: DECATHLON, Media Saturn Holding.
  • Introduction of the possibility of long-term rental of consumer devices for individual customers. Pilot service made available in stationary iSpot stores.
  • Joining the Clean Air Programme 2021-22.
SIMPLICITY simplified product offering, especially in Retail Banking, and simplified and interactive communication with customers, simplified processes and focus on customer service, optimisation of traditional distribution channels and migration of customers to digital channels, simplification of the organisation to increase its efficiency
  • Development of the Autenti solution: 613 thousand documents electronically signed in 2021 (290 thousand in 2020).
  • Release of myID (mojeID) service provided by the Krajowa Izba Rozliczeniowa (KIR) – free creation of an Electronic Identity, allowing remote identification for official and commercial matters.
  • Free AgroEmissions calculator that allows agricultural producers and farmers to estimate greenhouse gas emissions from crop and dairy production.
  • „Local Flavours” („Lokalne Smaki”) promotional campaign launched by BNP Paribas Food & Agro with Allegro Lokalnie – a possibility to sell food products online without commissions for the Bank’s Customers.
  • Launch of NFC standard for SwatchPAY watch payments.
  • Chatbot Eva – development of a self-learning program to support processes inside the Bank.
QUALITY a significant improvement in the level of customer service quality and satisfaction by changing the organisation and streamlining service processes and focusing on the customer relationship, recognising and valuing the loyalty of existing customers and changing the meaning of and approach to measuring customer satisfaction
  • „Bank of the Year in Poland” award of The Banker monthly magazine owned by Financial Times Group. Financial results were evaluated, as well as strategic initiatives, technological development, products and services, and actions taken in the fight against pandemics.
  • 1st place for the third year in a row in the Ranking of Responsible Companies in the general classification and in the banking, financial and insurance sector category.
  • Best Private Bank in Poland title for BNP Paribas Wealth Management in the Global Private Banking Innovation Awards 2021.
  • Fastest Time to Value award for implementing the Nexus platform to support secure software development.
  • Improved service quality, decrease in the number of complaints.
  • Extension for next two years of OK SENIOR certification for branch network, confirming service according to highest safety and fraud protection standards and sale of reliable and understandable products.
  • Induction loops to assist the hearing impaired in 50 branches.
  • Guidance for employees on how to behave towards people with disabilities.
  • Increasing the number of branches with barrier-free facility certification to 77.
  • More than 600 calls to a sign language interpreter after more than a year of service implementation.
  • Travel insurance with the Mastercard World Elite card extended to COVID-19.
ENTHUSIASM increased employee engagement through participation in interesting projects and increased levels of collaboration, reinvigorating the organisational culture by rewarding performance, focusing on talent, attracting the best in the market and nurturing the best employees
  • 15 years of the BNP Paribas Foundation activity. Over 1,300 beneficiaries of scholarship programmes and nearly 100 thousand hours devoted to social activities by bank volunteers. As part of its activities in 2021, among others:
    • 9th edition of the competition for volunteering projects 56 projects submitted.
    • Strategic partner of the ‘Ocalenie’ Foundation.
    • Almost 72 thousand km completed by Bank employees as part of the „Good Kilometres” campaign organised by the Foundation.
  • Local Grants Program providing PLN 300 thousand to 60 local NGOs across Poland in 2021.
  • Chapter Zero Poland Partner of a programme for management bodies of companies, raising awareness of the consequences of climate change.
  • Next steps to reduce carbon footprint (-46% vs 2019).
  • BNP Paribas Poland Open. Title partner of the only WTA tennis tournament in Poland.
  • Mastercard OFF CAMERA. Strategic partner of the International Festival of Independent Cinema.
  • „Where are our Patrons?” initiative encouraging schools to adopt extraordinary women as school patrons.
  • Signing the #JamaisSansElle (Never Without Her) card pledging key managers not to attend public events of more than three people without a woman present.
  • „Diversity and inclusive culture step by step”. Preparation, together with partners from a dozen other non-banking companies, of a guide for companies developing on the basis of diversity and inclusion ideas.
  • Strategic partner of the 4th edition of the 'Jestem Liderką’ (“I am a Leader”) programme organised by Vital Voices Poland
  • The campaign „The world needs you” involving stakeholders in the implementation of the UN Sustainable Development Goals.
  • The #razemzmieniamy (#togetherwechange) campaign grants a total of PLN 50 thousand to artists and organisations implementing the Sustainable Development Goals.
  • The campaign „Every reason is good to help”, highlighting the Bank’s employees’ involvement in volunteering for the Noble Parcel.
  • Realization of the BeeOmonitoring project involving local monitoring of biodiversity and environmental pollution in agricultural and industrial areas using bees.
DIGITALISATION building a competitive advantage based on technology: digitisation to optimise costs by automating operations, digitisation to enable growth using a comprehensive, multi-channel sales and service model, and digitisation to support the identification of customer needs through the use of CRM and data analytics to improve offer tailoring and personalise customer communications through consistent online and mobile platforms
  • GOmobile: 911 thousand users, +36% y/y.
  • GOonline: 790 thousand users, +6% y/y.
  • GOonline and GOmobile (including users of both systems): 1.38 million, +19% y/y.
  • New functionalities in the mobile application: Credit card repayment from an account in another bank, convenient and fast opening of foreign currency and savings accounts, modification of standing orders and increasing the limit in Allegro purchases.
  • Implementation of GOonline Biznes in place of BiznesPl@net.
  • The first use of AIS (Account Information Service) within open banking, allowing to confirm the client’s income when applying for an instalment loan, together with automatic filling of the application.
  • Over 2.8 million sheets of paper saved through digitisation since 2018.

CSR and Sustainability Strategy

We believe that a holistic approach is a prerequisite for achieving results in the area of responsibility.

Therefore, we implement the BNP Paribas Bank Polska S.A. CSR (Corporate Social Responsibility) and Sustainability Strategy. Its four pillars are: 

  • financing the economy in an ethical manner,
  • responsible approach to the development of our employees,
  • being an agent of positive social change,
  • supporting energy transformation and counteracting climate change.

The CSR and Sustainability Strategy is consistent with the Strategy of the BNP Paribas Group. It is also a crucial part of the „Fast Forward” strategy.

The BNP Paribas Bank Polska S.A. CSR and Sustainability Strategy consists of 12 commitments under 4 pillars of responsibility: economic, workplace, social and environmental.

CSRandSustainabilityStrategyofBankBNPParibas CSRandSustainabilityStrategyofBankBNPParibas

Implementation of the strategy in 2021

  • TCFD

The course of events in 2021 has confirmed the oft-repeated thesis that, at present, only uncertainty remains certain. The sweeping waves of the coronavirus with its successive mutations still do not allow for a full return to normality. Disruptions of supply chains, global shortages of materials, and the energy crisis have further fuelled rising inflation. Its scale exceeded all previous forecasts and translated into a relatively strong increase in interest rates. In addition, banks were still struggling with the problem of CHF loans. The year 2021 did not bring the expected decisions in the Supreme Court, the scale of legal uncertainty increased, which made most banks decide to make significant provisions on this account. As a result, financial results were under pressure, sometimes marking the net result at negative levels.

Given the difficult environment, last year was a successful one for the Bank. We strengthened the foundations of organic growth, thanks to which the customer base exceeded 4 million. All key products sold well, with particular emphasis on mortgage loans. Loan balances grew in each quarter, both on the retail and corporate side. The Bank developed its digital capabilities, which was reflected in the growing number of customers using remote channels. Already at this stage, the mobile channel shows the greatest potential for further growth.

The Bank is increasingly supporting initiatives in the ESG area. This is reflected in the change in internal structures, which were directed towards the development of this area and provided the framework for defining plans for the coming years. Importantly, the Bank has not limited itself to classic sustainable products based on customer financing. Equally important is the cooperation with promising startups through which the Bank offers advice on green transformation. An example of this is the implementation of the online calculator AgroEmisja allowing the Bank to monitor its own greenhouse gas emissions.

2021 is the final year of the Fast Forward strategy horizon for 2018-21, during this time the Bank successfully completed its merger with the separated part of Raiffeisen Bank Polska, rebranded and began to systematically build a new brand identity. Thanks to the scale built, greater diversification of activities, it was able to enter the path of organic growth, improve profitability and efficiency. Individual and corporate customers can also benefit from modern transaction systems. All this has been achieved with a focus on ethics towards customers and on employee safety. Nevertheless, the Bank sees elements that still require attention. Due to lower interest rates than originally assumed, the pandemic and the higher cost burden of provisions for legal risks related to the CHF loan portfolio, profitability as measured by ROE and the cost-to-income ratio were below strategic targets. The lower cost efficiency is partly due to the complexity of systems and processes, in the modernisation and optimisation of which the Bank plans to continue to invest. Furthermore, the focus will remain on further improving customer satisfaction, which will strengthen organic growth opportunities in the next strategic horizon.

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