2024
Management Board’s
Report on the activities
of the BNP Paribas
Bank Polska S.A. Group
including Management Board’s Report on the activities of BNP
Paribas Bank Polska S.A. in 2024 and the Sustainability Statement of
BNP Paribas Bank Polska S.A. Group in 2024
This document is a translation from the original Polish version. In case of any discrepancies between the Polish and English versions, the Polish version shall prevail.
Environment
Strategy and prospects
GObeyond strategy
Implementation
Financial results
Risks and
opportunites
Sustainability
Statement
Corporate
governance
Additional
information
Management Board’s Report on the activities of the BNP Paribas Bank Polska S.A. Group in 2024
2
Table of contents
Letter from the Chairwoman of the Supervisory Board 3
Letter from the President of the Management Board 4
Key data 2020-2024 5
About us 6
The Group and the Bank characteristics 7
BNP Paribas Group worldwide 9
The Bank on the Warsaw Stock Exchange 9
Key events in 2024 12
The Bank in its environment 17
Macroeconomic situation 18
Performance of the banking sector 20
Stock market and investment situation 23
Strategy and prospects 25
Business strategy GObeyond 2022-2025 26
Outlook 2025+ 29
Perspectives 31
Implementation of strategy 32
Pillar UP 33
Segment description 34
Distribution channels 44
Operations and business support area 46
Entities of BNP Paribas Bank Polska S.A. Group 46
Pillar POSITIVE 49
Sustainable financing 49
Positive banking 55
Community involvement 56
Pillar STRONGER 64
Digitalisation and innovation IT strategy 64
Support for innovation 68
Cybersecurity 70
Pillar TOGETHER 71
Good workplace 71
Employees’ salaries 73
Diverse and inclusive workplace 73
Financial performance 75
Group financial results 76
Business segment performance 96
Bank's financial results 100
Risk and opportunities 111
Risk management system 112
Principal types of risk 115
Sustainability Statement 131
General Disclosures (ESRS 2) 132
Climate change (ESRS E1) 155
Own workforce (ESRS S1) 259
Consumers and end-users (ESRS S4) 279
Business conduct (ESRS G1) 291
Additional information on the entity 298
Corporate governance 304
Application of corporate governance principles in 2024 305
Shares and shareholders 311
Statutory bodies of the Bank 312
Remuneration of the Management Board and Supervisory Board 328
Diversity policy 330
Internal control system (including control and risk management system for the
preparation of financial reports) 331
Information about the auditor 333
Additional information 334
Compliance with laws and regulations 335
Post-balance sheet events 343
Statements of the Management Board of BNP Paribas Bank Polska S.A. 344
SIGNATURES OF THE MEMBERS OF THE MANAGEMENT BOARD OF BNP
PARIBAS BANK POLSKA S.A. 345
Environment
Strategy and prospects
GObeyond strategy
Implementation
Financial results
Risks and
opportunites
Sustainability
Statement
Corporate
governance
Additional
information
Management Board’s Report on the activities of the BNP Paribas Bank Polska S.A. Group in 2024.
3
Letter from the Chairwoman of the Supervisory Board
Dear All,
2024 was a year abounding in changes on the global geopolitical stage. One of
the most prominent among them was the re-election of Donald Trump as
President of the United States. The consequences of his electoral victory will be
far-reaching for international economies in the years to come, and may even
significantly reshape the world as we know it.
Donald Trump’s return to the White House concurs with a number of other
challenges and risk factors, such as the escalation of the conflict in the Middle
East and the ongoing war in Ukraine which broke out three years ago. The latter
poses particular threats to the stability and security of our continent. On the one
hand, it compels European countries to ramp up their defense spending. On the
other, it spurs the European Union’s integration in areas such as energy
generation and distribution, digital security, innovation of the European economy
and migrations.
Against the backdrop of global turmoil, the Polish economy looks solid. 2024
brought an increase in domestic demand and an acceleration in GDP growth,
putting Poland among the fastest-growing countries in the European Union.
Inflation is slowing down, the Polish zloty remains stable, and the unlocking
of funds under the National Reconstruction Plan should boost both public and
private investment. Unemployment remains low, which, combined with
increasing wages, will continue to drive up consumption volumes.
In 2024, we recorded record-high performance as measured by net banking
income (PLN 7.8 bn) and net profit (PLN 2.4 bn). We generated a return on
capital of 16.9%. The bank’s balance sheet remains very stable, with good quality
of the loan portfolio, secure liquidity position and capital buffers (despite the
burden of CHF loan-related law risk provisions on our bottom line). What we
consider extremely important is that owing to the organic growth of the bank’s
capital in 2024, we were able to pay dividends to our shareholders. I believe this
change is permanent.
In 2024, we rapidly developed our product offering, especially in the area of
digital solutions. Today, the banking sector is under constant competitive
pressure from high-tech companies, fintechs and e-commerce businesses. The
next industrial revolution related to Artificial Intelligence and GenAI has already
arrived. It affects nearly all areas of the economy. In banking, digital transition
predominantly serves as a driver of improvements in operational efficiency, data
management, security and, above all, customer offerings. We want to be at the
focal point of these changes. This year, BNP Paribas Bank offered customers
behavioral protection and was the first in the market to deploy BaseModel.ai,
a solution that enables the use of artificial intelligence in the development of
state-of-the-art banking services. This is just one example of the banking
sector’s response to technological transition.
We saw clear confirmation in 2024 that by following this path, we attain our
goals. BNP Paribas Bank is a leader in the areas we have picked as our priorities
for this year. This is confirmed by the awards and recognition we obtained from
international organizations.
We remain committed to the pursuit of sustainability. We support retail
customers and businesses of all sizes. Sustainability is also about solutions for
customers consulting, measuring carbon footprint, supporting energy
efficiency, propping up regenerative agriculture and encouraging green capital
investments. The goal is to improve the competitiveness of Polish companies
while taking responsibility for the natural environment.
The bank’s priority remains to keep raising the bar for customer experience – in
sales channels, mobile banking, diversity of product offerings, attractive terms
and conditions, operational efficiency and security. This year, BNP Paribas Bank
became a laureate of the Polish Contact Center Awards. The jury recognized our
use of Verint Automated Quality Management (AQM).
A year of hard work is behind us. I wish to thank the Management Board and all
the bank’s employees for their contribution to our outstanding performance. We
have demonstrated that it is possible to combine social responsibility with
business efficiency we build our success by putting people in the center of our
attention. We have once again been awarded the title of Top Employer, we
support the development of talent, we invest in digital competencies, we bridge
divides, including those based on gender differences (we have met the targets
set by the EU Women on Boards Directive well ahead of time). Last but not least,
we are committed to volunteerism initiatives and helping those most in need.
These are the solid foundations on which we will continue to develop a
flourishing and resilient organization in 2025.
Despite the uncertainties, I look to 2025 with optimism. Europe is undertaking
a series of reforms. The EU Compass to regain competitiveness is a priority for
Europe, expected to bring many positive changes to business. The Polish
economy has a growth outlook ahead of it a long-awaited reduction in inflation
and, as a consequence, a decrease in interest rates, stronger investment and,
hopefully, a stable regulatory environment.
In such circumstances, I believe that BNP Paribas Bank will grow organically
while solidifying its market position. This will be a time of building shareholder
value for the bank, continuing the path of digital transition and greater
operational efficiency, emphasis on customer experience and social
responsibility. It will also be a period of preparation for the new strategy for
2026-2030. There is no doubt in my mind that with the people who make up BNP
Paribas Bank, we are in for another successful year.
Lucyna Stańczak-Wuczyńska
Chairwoman of the Supervisory Board of BNP Paribas Bank Polska