economic
situation
in
its
lending
policy
and
applied
more
restrictive
procedures
towards
sectors
characterised
by
increased
risk.
The
Bank’s
lending
portfolio
was
diversified
with
a significant
share
of
high-quality
loans
granted
to
business
entities.
Within
the
Bank
Group,
credit
receivables
in
Stage
3
represented
3.3%
of
the
total
gross
exposure
(measured
at
amortised
cost),
which
is
significantly
less
than the average for the entire banking sector (6.5%);
•
had
systems
and
procedures
in
the
market
risk
management
area
(for
interest
rate
or
currency
risk,
among
others)
that
meet
the
top
market
standards.
Throughout
2020,
individual
market
risk
categories
were
managed
actively
so
that
their
levels
were
within
the
limits
effective
at
the
Bank.
The
balance sheet structure of the Bank is balanced from the currency perspective; its distinctive feature
is the low share of FX receivables in the total mortgage receivables, among other things;
•
maintained
good
liquidity.
As
at
2020
yearend,
the
LtD
ratio
settled
at
82.6%.
The
sound
liquidity
position
of
the
Group
is
attributable
to
one
of
the
largest
among
Polish
banks
(and
still
growing)
stable
household deposits base;
•
had
an
adequate
level
of
own
funds
meeting
supervisory
requirements.
In
December
2020,
the
total
capital ratio of the ING Bank Śląski S.A. Group was 18.72%, while the Tier 1 ratio stood at 16.09%.
Furthermore,
the
internal
control
system
used
by
the
Bank
is
effective
enough
to
secure
the
Bank
against
unexpected
developments
in
terms
of
the
financing
granted,
non-financial
risk,
market
risk,
liquidity
or
capital adequacy.
Despite
an
expected
dynamic
rebound
in
the
pace
of
economic
growth
and
increasing
COVID-19
vaccination
rates,
2021
is
still
greatly
affected
by
pandemic
developments
in
Poland
and
worldwide.
This
is
why,
the
Supervisory
Board
is
of
the
opinion
that
the
Bank
should
continue
to
focus
on
the
actions
enhancing
its
own
security,
security
of
its
employees
and
customers
as
well
as
actions
ensuring
availability and competitiveness of products and customer experience, such as:
•
adequate
capital
management
in
order
to
ensure
safe
lending
growth
as
well
as
fulfilment
of
all
present and future regulatory requirements;
•
further
development
of
the
product
offer
and
electronic
distribution
channels.
In
the
time
of
ongoing
pandemic
and
stiff
competition,
it
is
possible
to
increase
revenues
by
expanding
the
customer
base
through
acquiring
new
customers
and
increasing
loyalty
of
the
existing
ones.
Such
an
approach
boosts customer balances and transactions’ volumes;
•
increase
of
lending
capabilities,
while
being
prudent
when
assessing
clients’
risk.
That
will
foster
keeping high quality of the portfolio and boost net interest income;
•
maintenance of adequate stable deposits. It will ensure liquidity indispensable to develop lending;
•
further
improvement
of
cost
effectiveness
while
maintaining
high
quality
of
processes
through
optimal use of existing resources and benefits resulting from the increased scale of operations.
According
to
the
Supervisory
Board,
the
strategy
pursued
by
the
Bank
over
the
last
few
years
to
increase
the
scale
of
its
operations
proved
to
be
successful
which
is
reflected
in
the
achieved
financial
and