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- strategy (insurance, health, investments, finances);
- sustainable development (sales, employees, social responsibility, natural environment and ethics).
The above-mentioned areas were additionally supplemented with related GRI indicators, within each selected issue.
In the CHAPTER
GRI
- 102-7 Scale of the reporting organization
- 103-2 Approach to management and its elements
- 103-3 Evaluation of the approach to management
- 201-1 Direct economic value generated and distributed
- 102-13 Membership in associations and organizations
- 102-40 List of stakeholder groups engaged by the reporting organization
- 102-42 Basis for identification and selection of stakeholders engaged by the organization
- 102-43 Approach do engaging stakeholders, including the frequency of engagement by stakeholder type and group
- 102-44 Key issues and concerns raised by stakeholders and the organization’s response, also by reporting them
In the CHAPTER
GRI
- 102-8 Data pertaining to employees and other persons working for the organization
- 103-2 Approach to management and its elements
- 103-3 Evaluation of the approach to management
- 404-1 Average number of hours of training per year per employee
- 404-2 Managerial skill development and continuing education programs supporting continuity of employment of employees and facilitating the retirement process
- 404-3 Percentage of employees subject to regular assessments of work quality and professional development reviews, by gender and employment category
- G4-FS16 Initiatives to enhance financial literacy by type of beneficiary
In the CHAPTER
In the CHAPTER
GRI
- 103-3 Evaluation of the approach to management
- 307-1 Cash value of penalties and total number of non-financial sanctions for non-compliance with the law and/or regulations on environmental protection
- 301-1 Raw materials/materials used by weight and volume
- 302-1 Energy consumption by the organization, taking into account the types of raw materials
- 302-4 Reduction of consumption of energy
In the CHAPTER
GRI
- 102-9 Description of the supply chain
- 102-11 Explanation of whether and how the precautionary principle is addressed by the organization
- 102-15 Description of key impacts, opportunities and risks
- 102-16 Organization’s values, code of ethics, principles and norms of behavior
- 102-17 Internal and external mechanisms making it possible to obtain advice regarding the behaviors in ethical and legal issues and issues associated with the organization’s integrity
- 103-2 Approach to management and its elements
- 103-3 Evaluation of the approach to management
- 102-5 Organization’s form of ownership and legal form
- 102-18 Organization’s supervisory structure along with the commissions that report to the highest supervisory body
- 205-1 Actions assessed in terms of threats associated with corruption
- 205-2 Communication and training on anti-corruption policies and procedures in the organization
- 206-1 Legal steps taken against the organization for cases of violating the principles of free competition and monopolistic practices
- 405-1 Composition of supervisory bodies and employees broken down into employee groups by gender, age and other diversity factors
- 406-1 Total number of discrimination cases and corrective measures taken in this regard
- 419-1 Non-compliance with the law and socio- economic regulations
In the CHAPTER
GRI
- 103-2 Approach to management and its elements
- G4-FS13 Access points to sparsely populated areas that are less economically developed
- G4-FS14 Initiatives undertaken to improve access to financial services for disfavored persons
- G4-FS15 Policies for the fair design and sale of financial products and services
- 417-1 Internal requirements concerning the labeling of products and services and information regarding them
- 417-2 Incidents of non-compliance with regulations and voluntary codes concerning the labeling of products and services and information regarding them
- 417-3 Incidents of non-compliance with regulations and voluntary codes concerning marketing communications
Read more:
- Client at the center of attention
- Innovations
- Responsible sales
- Insurance
- Banking and strategic partnerships
- Working conditions
- Employee development
- Knowledge sharing
- Enhancing safety
- Health
- Improvement of living conditions in local communities
- Our impact on the natural environment
- Practical challenges in managing direct impact
- Products and adaptation to climate change
Business model
Employee
CSR
Environment
- Ethical foundations of business operations
- Preventing corruption and conflict of interests
- Diversity and respecting human rights
- Whistleblowing system
- Transaction security
- Risk management, taking into account non-financial risk
- Risk appetite
- PZU Group’s risk profile
- Reinsurance operations
- Polish and Baltic States insurance sector compared to Europe
- Regulations pertaining to the insurance market and the financial markets in Poland
- Non-life insurance (PZU, LINK4 and TUW PZUW)
- Life insurance (PZU Życie)
- International operations
- Contribution made by the market segments to the consolidated result
Risk and ethics
Market
Business
Financial results
Read more:
- Client at the center of attention
- Employee development
- Health
- Cultural patronage
- Practical challenges in managing direct impact
- Ethical foundations of business operations
- Diversity and respecting human rights
- Whistleblowing system
- Transaction security
- Risk appetite
- PZU Group’s risk profile
- Risk vulnerability
- Capital management
Business model
Employee
CSR
Environment
Risk and ethics
Read more:
- New approach to sales
- Working conditions
- Employee development
- Diversity and respecting human rights
Business model
Employee
Risk and ethics
Read more:
- Client at the center of attention
- Medical services (Health)
- Working conditions
- Enhancing safety
- Health
Business model
Employee
CSR
- Our impact on the natural environment
- Practical challenges in managing direct impact
- Diversity and respecting human rights
- Medical services (Health)
Environment
Risk and ethics
Business
Banking sector on the Warsaw Stock Exchange
Context in the banking sector
In 2018, the WIG-Banks3 index sank 12.1% y/y, or 2.6 p.p. more than the WIG index. The deteriorating sentiment towards banks (in 2017, WIG-Banks increased 35.4% y/y, beating WIG by 12 p.p.) is a result of the market’s response to the passive “wait and see” attitude adopted by the Monetary Policy Board towards interest rate hikes. The rationale behind this behavior of the Monetary Policy Board was the low inflation rate (below the NBP target of 2.5%) and the inflation structure, not driven by growth in demand on the goods and services market but stimulated predominantly by energy prices. The decline in the valuation of banking assets in Poland was also a result of the deteriorating global sentiments: the STOXX Banks index (adjusted for dividends, EUR) decreased in 2018 by over 30%.4
Despite the diminishing valuations of banks listed on the stock exchange, the overall condition of the banking sector remained good. Banks recorded increases in lending activity and net interest income, driven to a large extent by the high rate of economic growth and wages in Poland and the falling rate of unemployment. On the other hand, greater regulatory pressure resulted in a lower result on fees and commissions. This notwithstanding, already in November 2018 the profits generated by the banking sector surpassed those achieved in the whole of 2017.
The bank valuations were also affected by local factors related to the situation involving Getin Bank and Idea Bank. Due to their financial problems and a rapid outflow of deposits (especially in the case of Getin Bank), concerns emerged about possible corrective measures and potential involvement of other capital-rich Polish banks. It also caused concerns about a greater-than-expected increase in contributions to the Bank Guarantee Fund (BFG), which according to analysts would have to swell from approx. PLN 2 billion to PLN 3 billion per annum in order for the Fund to reach the target levels of cash until 2030 despite potential additional costs. The risk related to the conversion of loans denominated in Swiss francs continued to exist.
In 2018, the share prices of the banks controlled by PZU, i.e. Pekao (a member of the PZU Group since 7 June 2017) and Alior Bank (a member of the PZU Group since 18 December 2015), went down 9.7% (taking account of the dividend) and 33.1%, respectively. The relatively poorer performance of Alior Bank compared to the WIG-Banks index resulted to a certain extent from investors’ concerns about the execution of Alior Bank’s ambitious strategy in the context of profound changes in its management and speculations about the bank’s possible continued participation in the consolidation of the banking sector in Poland.
In 2018, Pekao distributed a dividend of PLN 7.9 per share (100% of profit), which implied a 6.1% dividend yield (calculated based on the share price at yearend 2017). The dividend yield for the WIG-Banks index was 3.4%.
WSE-listed banks in 2018
Source: www.gpwinfostrefa.pl
3 It is an income-based index and thus, when it is calculated, it accounts for both the prices of underlying shares and income from dividends and pre-emptive rights.
4 https://www.stoxx.com/index-details?symbol=SX7E
