As at 31 December 2022, the PZU Group’s total assets were PLN 436,119 million, up PLN 33,990 million compared to the end of 2021.
Assets
Loan receivables from clients constituted 48.7% of the Group’s assets (versus 53.5% at the end of 2021). Their balance reached PLN 212,693 million. Compared to 2021, it decreased by PLN 2,315 million chiefly due to decreasing mortgage loans for individual clients.
39.9% of assets (versus 37.2% at the end of 2021) were investments: financial assets, investment property, derivatives and financial assets pledged as collateral for liabilities. In total, they constituted PLN 174,051 million, and were up by PLN 24,660 million as compared to the end of last year. The increase in the value of investments was associated particularly with Bank Pekao, and was related to the higher value of the portfolio of derivatives and portfolio of debt securities. Net of the banking business, the investment portfolio increased compared to the level of the previous year, and changes in its balance are attributable to the generated investment result, and inflow of premiums driven by business growth.
2.4% of assets (versus 2.6% at the end of 2021) were noncurrent assets in the form of intangible assets, goodwill and property, plant and equipment. They amounted to PLN 10,394 million, and were by PLN 69 million higher as compared to the end of 2021. This increase also pertained to property, plant and equipment.
3.7% of assets (versus 2.3% at the end of 2021) were cash and cash equivalents. Their value was PLN 15,960 million and was PLN 6,513 million higher than one year before. It was decided by the increase in the balance of funds accumulated in Poland’s central bank by Bank Pekao.
2.9% of assets (versus 2.3% at the end of 2021) represented the PZU Group’s receivables, including receivables under insurance contracts and the current income tax. They amounted to PLN 12,642 million and were higher by PLN 3,224 million compared to the year before. The increase arose primarily from the higher value of outstanding transactions involving financial instruments.
0.1% of assets (compared to 0.2% as at the end of 2021) were the assets held for sale. Their balance grew by PLN 11 million, to PLN 654 million, over a year. It concerned mainly the properties held by real estate sector mutual funds as held for sale, since the expected investment horizon was reached.
Equity and liabilities
At yearend 2022, the PZU Group’s consolidated equity reached PLN 39,752 million, which was down PLN 242 million versus the year before.
The value of non-controlling interests decreased by PLN 651 million to PLN 22,263 million. This was driven by the decrease in the valuation of debt instruments and cash flow hedging instruments measured at fair value through other comprehensive income, Pekao’s dividends to non-controlling shareholders of PLN 1,129 million (also PLN 903 million to minority shareholders) and the result attributable to noncontrolling owners of PLN 1,885 million (generated by Alior Bank and Bank Pekao).
63.8% of the Group’s equity and liabilities at yearend 2022 were liabilities to clients under deposits. They amounted to PLN 278,058 million and were higher by PLN 12,903 million than one year before. This resulted from the increase in term deposits of Bank Pekao and Alior Bank by PLN 47,588 million, which was partly offset by a decrease in term deposits.
As at 31 December 2022, the PZU Group had liabilities arising from own debt securities totaling PLN 11,090 million, including:
- PLN 3,488 million on bonds issued by Bank Pekao and Alior Bank;
- PLN 6,646 million on certificates of deposit issued by Bank Pekao and Alior Bank;
- PLN 956 million on covered bonds issued by Bank Pekao.
Subordinated liabilities of the PZU Group at yearend 2022 reached PLN 6,184 million, which was similar to the corresponding 2021 value.
12.1% of equity and liabilities at yearend 2022 was the value of technical provisions. It amounted to PLN 52,606 million and was PLN 2,433 million higher than one year before. This was affected by:
- an increase in the provisions for premium in property insurance and other personal insurance resulting mainly from the development of insurance sales, including the acquisition of several contracts with a high individual value (renewal in the Q4 of a contract for a fuel and energy client);
- increase in the provision for outstanding claims and benefits in non-life insurance related to the higher level of claims provisions in other financial, MTPL insurance;
- lower policyholder risk provisions individual and group investment products as a result of negative investment performance on the portfolio.
3.9% of equity and liabilities at yearend 2022 was other liabilities in the amount of PLN 17,178 million. They were higher by PLN 3,975 million than one year before. The balance changed primarily due to liabilities arising from transactions in financial instruments and repurchase transactions and liabilities to banks for payment documents cleared in interbank clearing systems.
Cash flow statement
At yearend 2022, net cash flow was PLN 6,446 million, up by PLN 5,004 million versus the previous year. This growth was recorded in particular in cashflow from operational activity.
Material off-balance sheet line items
The value of contingent liabilities at the end of 2022 was PLN 80,676 million, that is PLN 11,728 million more year on year. This was caused predominantly by:
- PLN 4,829 million in contingent liabilities for renewable limits in settlement accounts and credit cards;
- PLN 53,634 million in liabilities from loans in tranches;
- PLN 8,521 million in liabilities in the form of awarded guarantees and sureties;
- PLN 4,158 million in the form of guarantees for the issue of securities.