Operating income

Add to my report
Previous chapter | Next chapter

In 2014, the Group's operating income amounted to PLN 7,345.7 million, a decrease of PLN 147.9 million, i.e. 2.0% in comparison with 2013 mainly due to decrease in net non-interest income partially compensated by higher net interest income achieved despite significant pressure of lower interest rates.

Total net interest income, dividend income and income from equity investments (in PLN million)

 

2014

2013
(excluding PJSC UniCredit Bank)

2013

Change
(excluding PJSC UniCredit Bank)

Interest income

6,225.3

6,680.9

6,774.3

(6.8%)

Interest expense

(1,764.0)

(2,237.0)

(2,268.7)

(21.1%)

Net interest income

4,461.3

4,443.9

4,505.6

0.4%

Dividend income

8.3

6.7

6.7

23.9%

Income from equity investments

63.2

59.4

59.4

6.4%

Total net interest income, dividend income and income from equity investments

4,532.8

4,510.0

4,571.7

0.5%

Total net interest income, dividend income and income from equity investments in 2014 amounted to PLN 4,532.8 million and was higher by PLN 22.8 million, i.e. 0.5% compared to the previous year thanks to higher volumes fully compensating negative impact of lower interest rates including reduction of the NBP Lombard rate determining the maximum interest rate applicable to loans. In 2014, average WIBOR 3M rate stood at the level of 2.51%, and was lower by 52 b.p. than in 2013, while the NBP Lombard rate went from 4.0% at the end of 2013 to 3.0% at the end of 2014.

Net non-interest income (in PLN million)

 

2014

2013
(excluding PJSC UniCredit Bank)

2013

Change
(excluding PJSC UniCredit Bank)

Fee and commission income

2,536.2

2,635.9

2,655.1

(3.8%)

Fee and commission expense

(492.5)

(504.2)

(512.3)

(2.3%)

Net fee and commission income

2,043.7

2,131.7

2,142.8

(4.1%)

Trading result

679.5

755.2

752.8

(10.0%)

of which gains on disposal of AFS assets

253.5

308.4

308.4

(17.8%)

Net other operating income and expense

89.7

96.7

98.0

(7.2%)

Net non-interest income

2,812.9

2,983.6

2,993.6

(5.7%)

The Group's net non-interest income in 2014 amounted to PLN 2,812.9 million, a decrease of PLN 170.7 million, i.e. 5.7% in comparison with 2013 mainly due to lower net fee and commission income (affected by lower interchange rates decreasing card related fees, unfavorable market conditions influencing mutual funds and brokerage fees as well as OFE reform and migration to the Internet channels) and lower trading result, in particular lower gains on disposal of available for sale financial assets.

 

The table below presents the Group's net fee and commission income divided according to the main areas of the activity.
 

(in PLN million)

 

2014

2013
(excluding PJSC UniCredit Bank)

2013

Change
(excluding PJSC UniCredit Bank)

Net fee and commission income

2,043.7

2,131.7

2,142.8

(4.1%)

on loans

446.4

431.8

431.8

3.4%

on cards

403.6

455.6

453.5

(11.4%)

capital market related

363.0

391.0

391.0

(7.2%)

other

830.7

853.3

866.5

(2.6%)

The Group's net fee and commission income in 2014 amounted to PLN 2,043.7 million and was lower by PLN 88.0 million, i.e. 4.1% in comparison with 2013, mainly due to lower cards related fee affected by interchange fee rate reduction in July 2014 and lower capital market related fee.