Integrated Report 2021

Small and Medium Enterprise Banking


The Small and Medium Enterprise (SME) Banking area provided services to three main customer sub-segments in 2021: 

with a complete financial reporting system, with net sales revenues from PLN 4 million to PLN 60 million for the last financial year and the Bank’s credit exposure to the customer not exceeding PLN 18 million. This sub-segment includes also groups of agricultural producers (where the Bank’s credit exposure does not exceed PLN 40 million) and field organizational units of the State Forest Enterprise (Państwowe Gospodarstwo Leśne Lasy Państwowe), i.e. regional directorates, forest inspectorates etc., regardless of the scale of their turnover and credit exposure;

a sub-segment that includes entities that maintain full financial reporting, with net sales revenues for the last financial year from PLN 4 million to PLN 60 million and the Bank’s credit exposure to a customer not exceeding PLN 18 million, as well as public finance entities with a budget of up to PLN 100 million. This sub-segment of clients includes also churches and other religious organizations and their subsidiaries.

(i.e. business entities conducting agricultural production activities) with full financial reporting, with 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 and betweenPLN 3 and 4 million if the collateral on agricultural land covers less than 50% of credit exposure.

Distribution channels

The SME Banking Area sales network as of 2021 included 6 SME Banking Regions grouping 45 SME Business Centers located in 34 local markets with the greatest potential.

In Q4 2021, the Bank conducted a strategic review of the organisational structure in the SME Banking Area. As a result, from 1 January 2022, the territorial extents of regions were changed and the previous 6 SME Banking Regions were consolidated to 3 Regions. This change was intended to align the regional sales network in the SME Banking Area with the organisational changes taking place in the Corporate Banking Area and consequently better capture of the synergies between SME Clients and Medium-sized Corporate Clients (MID CAP).

The Bank’s model of servicing SME clients is a model based on relationship. Its essence is the individual service of the advisor, who is responsible for the entire relationship of the client with the bank. In addition, to fully meet the needs of customers, teams of specialists are dedicated to provide services to SME companies, offering a high standard of sales service and product consultancy, based on knowledge and experience in the field of cash management, treasury, leasing, factoring and trade financing.

SME customers can benefit from ongoing operational support through the retail branch network, online and mobile banking channels offered by the Bank, as well as rely on telephone operational and information support from a dedicated Business Service Area.

Main achievements in 2021

  • Profit from banking activities up +1.3% y/y despite dynamic changes in the environment and persistent COVID-19 pandemic
  • Increase of income from financial markets transactions (+12.3% y/y)
  • Increase of leasing revenues (+22.1% y/y)
  • Increase of new loans volumes of Agro segment clients – over PLN 1.1 bn of new Agro loans sales, best result in 5 years
  • Increase of net fee and commission income (+15,2% y/y)
  • Reversal of negative trend in assets, increase of net value of credit and loan portfolio in the SME segment (+2.9% y/y)
  • Continuation of business and operational activities with wide use of secure formula of remote work, internet and mobile banking channels and remote customer service tools
  • Transparent offer of product packages for SME customers
  • Promoting the use of e-signatures for internal processes as well as in interactions with clients
  • Improving customer satisfaction and the Bank’s rating measured by the Net Promoter Score NPS (+26 r/r)
  • Separation of team in the Business Service Area dedicated to key SME customers and implementation of personalisation service (assignment of an employee to a customers’ portfolio)
  • Further improvement of SME customer service processes in the Business Service Zone – a dedicated customer support and after-sales service center:
    • First Contact Resolution (FCR) indicator was implemented for e-mail orders and phone calls
    • a notification mechanism was introduced, informing the customer about the execution time of handled orders
    • Key processes automation
  • Procedures and processes that allow for effective remote customer service in the light of the ongoing COVID-19 pandemic and restrictions on personal contact
  • Further development of the GOonline Business system, in particular:
    • new Export and Import Receipts modules available to customers
    • extension of the Loans module ( in the area of printing schedules and presentation of PFR subsidies)
    • providing access to Accounts module – for example list of accounts, account history, account management (naming, sorting, etc.)
    • new log-in page was made available to customers
    • unification of channel names across the GOBiznes ecosystem for corporate clients: GOconnect Biznes – H2H solutions, GOmobile Biznes – mobile banking
    • development of the self-service module for customers in GOonline Biznes: adding new types of dispositions and processes automation on the Bank side, e.g. fully digital immediate process of opening auxiliary accounts
  • Implementation of fully digital and automated request processes, servicing of redemptions of financial subsidies granted to clients due to the PFR 1.0 and 2.0 Financial Shield Programs
  • Extending digital client onboarding without the need for paper documentation to non-resident accounts.
  • Provide Clients with an eRecertification Application that transfers the KYC periodic recertification process into the digital world

Product offer

The Bank offers a wide range of products addressed to Small and Medium-sized Enterprises, characterized by high flexibility, which allows the Bank to adjust many parameters to individual customer needs.

The Bank’s offer dedicated to the SME segment includes products such as: transaction products within the account or package already owned, Internet and mobile banking: BiznesPl@net, GOmobile Biznes, FX Pl@net, BNP Paribas Connect Host to Host – integration of the financial and accounting system with the Internet banking system, deposit products, loan products, trade finance products, financial market transactions, factoring services offered in cooperation with BNP Paribas Faktoring Sp. z o.o., leasing services offered in cooperation with BNP Paribas Leasing Services Sp. z o.o.

Business line development in 2021

In 2021, the criteria for segmentation of customers into the SME line were changed, which from the beginning of this year included customers with net sales revenues for the last year in the range between PLN 4 and 60 million (previously: PLN 4-40 million).

The activities of the SME area in 2021 focused mainly on sales activity by:

  • increasing the customer base,
  • reversing the negative trend of loan volumes, which were decreased due to the COVID-19 pandemic and the launch of the state support addressed to companies as government aid programmes in 2020,
  • increasing the level of customer and cross-sell transactions mainly in the area of cash management and foreign exchange transactions.

Despite the restrictions related to the ongoing COVID-19 pandemic and the lower demand of credit by SME companies, especially in the first half of the year, the SME Banking area increased the sales volume of new credit limits. In 2021, sales of new credit limits increased by 27% y/y. It is worth noting that approximately 47% of new credit volumes were directed to customers of the AGRO sub-segment, which was the highest result of credit sales in this sub-segment over the last 5 years.

In 2021, the Bank’s result was also positively influenced by other activities undertaken in the SME area:

As part of these activities, the Bank conducted, for example, new clients acquisition by offering the Profit Box Plus product package together with a special promotion for H2H GOconnect Biznes solutions and the e-signature. These activities were supported by a special campaign „we plant trees for every open account”. Because of the changes in the law effective from 1 January 2022, the Bank also promoted the offer of payment terminals for SME customers. All these activities on an annual scale enabled cross-sell of cash management products to 1.9 thousand SME Customers, with whom almost 2.4 thousand new product agreements were concluded,

As a result of actions undertaken by the Bank, there was an increase in the number of customers using products related to the area of financial markets.

In 2021, the Bank continued its efforts to support its SME Customers under the government aid programs:

The Bank has given customers a fully digital opportunity to request and receive subventions,

The Bank has launched an online process of accounting and remission of received subventions.

In 2021, in addition to the above activities, the Bank carried out work related to the further development of processes digitalisation and optimization, including in particular credit and post-sales processes.

Bank guarantees and letters of credit

With respect to guarantees and letters of credit the Bank offers effective and comprehensive services based on dedicated IT solutions.

In 2021, the Bank on the instructions of clients of the SME Banking Area:

  • issued 634 bank guarantees for the total amount of PLN 173.4 million,
  • opened 133 import letters of credit for the total amount of PLN 38.3 million and handled 82 export letters of credit for the total amount of PLN 22.4 million issued by third-party banks in favor of these Customers.

Commercial volumes

As of 31 December 2021, deposits of Small and Medium Enterprise Banking customers on a consolidated basis amounted to PLN 12,966,188 thousand and were PLN 444,358 thousand or 3.5% higher than at the end of 2020. The structure of the portfolio did not change significantly compared to the end of 2020 (increase in the share of current accounts by 0.3 p.p., to 94.5%, with a simultaneous decrease in the share of term deposits by 0.3 p.p., to 0.4% and overnight deposits decreased by 0.1 p.p. to 0.3%).

As at 31 December 2021, the value of the SME Banking segment’s net credit and loan portfolio on a consolidated basis amounted to PLN 7,262,029 thousand (an increase of PLN 207,429 thousand, or 2.9%, than at the end of 2020). The largest increase in value concerned overdrafts and leasing.

Deposits and Loans to Small and Medium Enterprises*

PLN ‘000 31.12.2021 31.12.2020 change y/y
PLN ‘000
change y/y
Current accounts 12,254,801 11,795,792 459,010 3.9%
Savings accounts 56,834 89,973 (33,139) (36.8%)
Term deposits 614,046 587,276 26,770 4.6%
Overnight deposits 40,507 48,790 (8,283) (17.0%)
Accounts and deposits 12,966,188 12,521,830 444,358 3.5%
Investment loans 4,510,564 4,670,893 (160,329) (3.4%)
Overdraft facilities 2,055,745 1,772,700 283,045 16.0%
Lease receivables 693,373 608,857 84,515 13.9%
Factoring 512 841 (329) (39.1%)
Other loans 1,836 1,309 527 40.3%
Loans and credits (net) 7,262,029 7,054,600 207,429 2.9%
* The value of deposits and loans in selected segments is based on data from the management information systems as they provide more detailed product information. For the sake of comparability, the data as at 31 December 2020 were presented in accordance with the segmentation for 2021. The value of deposits excludes balances of some credit institutions which are considered interbank deposits in management reporting, whereas in financial reporting they are recognized as Customer deposits. In addition, the balances exclude accrued interest before maturity.

Gross profit of the SME Banking segment

The SME Banking segment generated a gross profit of PLN 80,582 thousand in 2021 (compared to PLN 106,012 thousand in the first half of 2020, an decrease of 24% y/y).

The decrease in the result was due to, in particular, higher risk costs and allocation costs than in 2020.

The result on banking activities of Small and Medium Enterprises Banking in 2021 amounted to PLN 449,798 thousand and was 1.3% higher compared to 2020. This was the result of an improvement in net fee income and trading profit possible due to, for example, changes in pricing policy and higher customer activity, especially in the second half of 2021. Result on banking activity of the SME segment accounted for 9.4% of the Group’s banking activity in the analyzed period.

Gross profit of the SME Banking segment*

PLN ‘000 12 months ended
12 months ended
change y/y
PLN ‘000
change y/y
Net interest income 241,560 264,110 (22,550) (8.5%)
Net commission income 129,558 112,460 17,098 15.2%
Net trading income and other operations 78,679 67,515 11,165 16.5%
Result on banking activity 449,798 444,085 5,713 1.3%
Result on impairment allowances (40,255) (15,875) (24,380) 153.6%
Operating expenses and depreciation (126,592) (136,130) 9,538 (7.0%)
Allocation of costs (175,598) (150,494) (25,104) 16.7%
Result on operating activities 107,352 141,586 (34,233) (24.2%)
Tax on financial institutions (26,771) (35,574) 8,803 (24.7%)
Gross segment result 80,582 106,012 (25,430) (24.0%)
* Information based on the segmentation note included in the Consolidated report of BNP Paribas Bank Polska S.A. Capital Group for the period ended 31 December 2021.

Search results