Corporate customers

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Bank Pekao S.A. maintains leading position on the market of corporate clients financial servicing and has one of the widest product offers on the market. The Bank's offer is constantly adjusted to the needs of clients and changing market conditions.

In 2014, the Bank's activities in the area of corporate clients focused on strengthening the customer base and enhancing of the product offer.

 

Transactional services

The Bank holds its leading market position in a comprehensive offer of services and products for the clients of transactional services and awards granted by independent assessment institutions confirm the high quality of services.

In order to meet clients expectations and to promote products increasing the level of security of commercial transactions, the Bank introduced new and standardized model contracts for escrow and trust accounts. These types of accounts are used to conduct cash settlements under the wide range of commercial and investment contracts. The Bank as an independent party, ensures proper disbursement of funds collected on escrow or trust accounts, protecting interest of transaction parties in accordance with the terms of the agreement. By introducing new documentation it was also provided a high flexibility as regard to possibility of customizing contract, i.e. adjusting the conditions to the type of contract and client expectations.

Within the scope of implementation of a New Settlement Model by Izba Rozliczeniowa Giełd Towarowych (the Commodity Clearing House), Bank Pekao S.A. since the third quarter of 2014 acts as a House Members' Payer Bank and is one of eight banks participating in settlements of transactions of purchase/sale of energy on the Polish Power Exchange. Co-operation with the Commodity Clearing House enables the Bank to acquire new volumes of transactions in settlements conducted under the New Settlement Model both from existing and prospective clients – members of the Commodity Clearing House.

In 2014, the Bank introduced special visualization AGRO cards for MasterCard Corporate Prepaid Pekao, which increases the awareness of the Bank's brand in the agricultural sector. In 2014, the Bank recorded increase in the number of issued prepaid cards by 118% in comparison with 2013.

Corporate customers of the Bank use the widest range of foreign currencies offer on the market for payments execution which allows to reduce the number of currency conversions, to shorten time of settlements and to streamline the process of liquidity management.

 

Custodial services

In the area of custodial services the Bank's clients are domestic and foreign financial institutions, banks providing custodial and investing services, insurance companies, investment and pension funds as well as non-financial institutions.

The Bank provides services including, among others, the settlement of transactions on domestic and foreign markets, the custody of client assets, the management of securities, servicing dividend and interest payments. The Bank acts also as a depository for investment funds and pension funds.

In 2014, the Bank acquired new customers from investment funds and insurance segments and the value of client assets increased thanks to acquisition of one of the largest global custodian banks. The Bank maintained its leader position servicing more than 50% programs related to depository receipts.

 

Trade finance

In 2014, in the area of trade finance, Bank Pekao S.A. recorded a significant increase in turnover. Turnover volumes within the service eFinancing increased in 2014 by 23% in comparison to 2013 and the market share of the Bank accounted for 25%.

Trade finance products offered by the Bank are also available in electronic banking system PekaoBiznes24. In 2014, there was the integration of the Bank's operational systems with EDI platform allowing customers debts financing on the basis of e-invoices. The EDI platform is available for both, eFinancing and Kredyt Zaliczka services.

The next innovation of the Bank within the scope of trade finance was implementation of new models of chain supply with entire control of debtors over invoices. The Bank became a supporting partner for customers' counterparties.

The Bank's activity within the framework of guaranties issued and improvement of the situation on construction services market contributed to an increase in turnover of guarantee portfolio issued on behalf of corporates and SME customers by 72.5% in 2014. The increase in turnover was additionally supported by introduction into the offer guarantees that secure VAT refund, the execution of license on fuel trade and tax refund associated with sensitive goods as well as tenement guarantees.

In 2014, volume of import L/Cs issued in the Bank increased by 50.8% in comparison to 2013 thanks to increasing activity of the key Bank's customers from retail sector and thanks to document instruments that securing import of raw materials and chemicals products.

 

PekaoBiznes24

The electronic banking system PekaoBiznes24 that offers a wide range of services, the highest standards of security and flexibility in management of user access is dedicated to large companies, corporations and local government units. As at the end of 2014, over 14.3 thousand customers used the PekaoBiznes24 system.

The PekaoBiznes24 offers its corporate customers:

  • convenient online access to a wide and modern products offer, including transactional banking and trade finance products, foreign exchange currency platform, deposits placement and lease transactions service,
  • speed and efficiency of transactions processing,
  • various types of reports adjusted to client's individual needs,
  • the highest security standard thanks to application of latest methods of system securing, including biometric security measures,
  • a user-friendly and intuitive system navigation,
  • open architecture allowing for integration with ERP, financial and accounting systems.

Within the framework of continuous development of internet banking system PekaoBiznes24, in 2014, the customers were offered, among others:

  • new fully electronic applications to access the PekaoBiznes24 system available 24 hours and 7 days a week that allow the customers to define the range of users rights in the system for their employees,
  • new interactive PDF forms for access configuration in the PekaoBiznes24, which replaced many separate documents,
  • possibility to adjust desktop to individual requirements of user (concept one – click).

As at the end of 2014, 2 thousand of customers used electronic applications and 97% applications was processed automatically.

In 2014, the number of incoming payments and the number and volume of SEPA transfers increased by 30%, 57% and 42% respectively as compared to 2013 which confirms the popularity of this form of settlements and the attractiveness of the Bank's offer in respect of efficient settlements, convenient cut-off times and the functionality of electronic banking system.

In 2014, the Bank recorded also an increase in the number and volume of external domestic payments by 14% and 10% respectively as compared to 2013. At the same time, the market recorded ca. 5% increase in the number and volume of external domestic payments.

 

Investment banking, structured financing and commercial real estate

The year 2014 was the record-high for the Bank in terms of the number and volume of commercial real estate structured financing. Dynamic of volume of new loan agreements amounted to 44% in comparison to 2013. The Bank participated in transactions from all market sectors i.e. real estate, energy, media, fuel, mining. The Bank granted loans for development and expansion of corporates, new construction facilities and refinanced the loans granted by other lenders.

The Bank introduced to its offer escrow accounts for developers in housing sector. Part of commercial real estate financing was realized in a strategic partnership with Pekao Bank Hipoteczny. The Bank ensures customer relationship conducting and structuration of transaction while Pekao Bank Hipoteczny ensures favourable refinancing in a form of issuance of covered bonds.

Within the framework of syndicated financing, the Bank acted as leading arranger in several transactions completed in 2014.

In 2014, the Bank participated in financing, among others, the following projects:

  • extraction in the Baltic Sea, the total amount of financing amounted to PLN 1 billion and the Bank's share amounted to PLN 333 million,
  • participation in loan granted to a leading Polish company operating in the mining industry, the total amount of financing amounted to USD 2.5 billion and the Bank's share amounted to USD 200 million,
  • participation in syndicated loan granted to one of the leaders on media market, the total amount of financing amounted to PLN 3 billion and the Bank's share amounted to PLN 200 million,
  • construction of container terminal, the total amount of financing amounted to EUR 290 million and the Bank's share amounted to EUR 49.9 million,
  • construction of shopping center in Kraków, the total amount of financing and the Bank's share amounted to PLN 304 million,
  • construction of shopping center in Gdańsk, the total amount of financing amounted to EUR 139 million and the Bank's share amounted to EUR 104 million.

 

Financial markets and commercial debt instruments of the capital market

In 2014, the Bank's offer was extended with products hedging the risk of changes in commodity prices, dedicated to commercial companies involved in trade of commodities as well as corporates using commodities in a production cycle or the services rendered by them are associated with global commodity market. The customers were offered with plain vanilla and Asian commodity options for 23 base indices.

In the Treasury area, optimization of corporate sales force was conducted that allows to increase operating efficiency and enables to offer Treasury products to potential client.

In 2014, development of electronic channels of distribution was continued through functionality extension of AutoDealing platform by FX Forward and FX Swap transactions and access to those channels was consistently promoted to customers interested in foreign exchange and on-line deposit of financial surplus.      

In the area of organization and servicing of commercial debt securities issuance, as at December 31, 2014, Bank Pekao S.A. took the first place with market share of over 21% (based on the Rating & Market Bulletin published by Fitch Poland).

As at the end of 2014, the market position of the Bank in each category was as follows:

  • 2nd place on corporate bonds market and corporate revenue bonds market (with maturities over 365 days) with a share of over 25%,
  • 2nd place in the segment of short-term debt securities with over 18% market share,
  • 2nd place on municipal bonds market (with maturities over 365 days) with a share of over 27%.

In the area of commercial debt, the Bank placed middle-term bonds for the total amount of ca. PLN 2.2 billion, of which a particular attention deserve the following transactions:

  • the issue of 5-year bonds for the total amount of PLN 1.75 billion for a company in energy sector. The Bank acted as agent and dealer. It was the largest debt securities issue conducted in 2014 on the Polish market,
  • the issue of 2 series of retail bonds for the total amount of PLN 300 million conducted in a public offer for a fuel sector company and offered to the Polish individual investors. The Bank acted as a global coordinator. Entities from Bank Pekao S.A. Group and UniCredit CAIB Poland S.A. participated in the issuance.

 

Comprehensive services for the public finance sector

The Bank consequently strengthens its leading position in public sector financing and the current financing of the local governments in Poland. The total volume of new transactions of public sector financed by Bank Pekao S.A. in 2014 amounted to over PLN 2.6 billion.

In 2014, the Bank completed transactions of financing projects associated with public utility for the amount of nearly PLN 1.1 billion and financed investments for the total amount of PLN 1.5 billion for budgets of the Polish largest cities, voivodeships and their subordinated units. The Bank financed the following projects:

  • purchase, repair and modernization of tram fleet of local railway in Mazowsze,
  • construction of psychiatric hospital in Drewnica,
  • construction of modern stadium in Zabrze,
  • modernization of university hostels of in Kraków in the form of public-private partnership,
  • expansion and modernization of the Regional Airport in warmińsko-mazurskie voivodeship,
  • broadband Internet development in kujawsko-pomorskie voivodeship,
  • revitalization of Olympic Stadium in Wrocław.

 

Co-operation with international and domestic financial institutions

The Bank maintains correspondent relations with 2.3 thousand foreign and domestic banks (by number of swift keys).

At the end of 2014, the Bank maintained 75 nostro accounts in 29 countries and 55 banks. The Bank kept 304 loro accounts and current accounts for foreign and domestic financial entities, including 223 loro accounts for 210 foreign customers (banks and other financial institutions) in 48 countries and 42 current accounts for 39 foreign financial institutions.

The Bank intermediates in execution of transactions for customers of other domestic banks, keeping 39 loro accounts for 13 Polish banks and maintaining 7 nostro foreign currency accounts in 2 Polish banks used for the ZUS pension benefits as well as clearing and custodial services. The Bank renders also services for the Polish banks and branches of foreign banks in Poland related to purchase and sale of foreign and domestic currencies.

The Bank achieved a high level of STP rate (straight through processing) of processing customers and interbank transactions which resulted in receiving awards from nostro correspondents.

 

Co-operation with international clients

In 2014, the Bank participated in "The internationalization of group customers" project realized in UniCredit Group, which supports development of international clients co-operation and service of international business in Europe.

Within the scope of this project, the Bank selected 1.2 thousand of existing group customers and intensified sales activities towards these customers in order to significant extension of co-operation. Similar activities of the Bank were also addressed to potential clients which translated into acquisition of new international corporate customers.