Our strategy is the result of an in-depth analysis of social changes, as well as business and economic ones that take place in Poland, Europe and throughout the world – Beata Daszyńska-Muzyczka, the president of BGK, explains. – The bank I manage is not indifferent to those changes, including climate challenges – the president emphasizes.
The business strategy sets goals and ambitions of the bank for the next five years. BGK will still implement its mission defined by the founders of the bank almost one hundred years ago, however adjusting it significantly and focusing on sustainable social and economic development of the country. Sustainable, meaning the one providing better living conditions and possibility of further development for future generations. Additionally the bank indicates another element of its mission – social development.
- Without building social capital, inspiring and activating local societies, supporting intellectual capital, promoting healthy lifestyle through sport or pro-ecological behavior it is impossible to develop the economy. The society and the economy are interconnected – the president Daszyńska-Muzyczka adds.
In the strategy the bank stresses its role as the development bank that responds to the change of macroeconomic factors. They include the real GDP growth rate, low-emission economy, ratio of average income from PIT per capita in the municipalities of the poorest voivodship to the average in the country and cumulated payments of EU funds from the perspective for 2021-2027, transferred through BGK.
- We want to inspire and create solutions that will combine private, public and financial sector in actions for sustainable development – the president of BGK concludes the role of the development bank.
BGK strategy pillars
Up to 2025 BGK wants to become the leader in creating and implementing the programmes that strengthen stable and competitive economy, supported by strong social capital.
In the sustainable development pillar it is going to work out sustainable financing solutions and also assess potential financing in terms of ESG, adjusting risk policy in this respect. The bank is planning to obtain ESG rating at the level of 5 decile among European banks. One of the latest initiatives of sustainable development is the 3W project – water, hydrogen, carbon. It is supposed to connect and support the scientific and business world in the development of modern technologies applied in industry, energy and medicine, using for instance innovative coal technologies.
Building social commitment is the pillar not associated with financial sector at first glance, however it is crucial in fulfilling the mission of the development bank.
The bank defines social capital as the condition for cooperation based on trust and as the starting point for the development of modern economy.
- We still have very low level of social trust in Poland. It is over two or even three times lower compared to the European Union average. This results in lower number of initiatives and smaller interest in entrepreneurship – the president of BGK evaluates.
The international business and cooperation pillar assumes the increase of the competitiveness of Polish economy and improvement in the level of internationalizing of Polish companies. The bank will work out the programme for comprehensive support of foreign expansion of Polish companies. Additionally it wants to build awareness of the attractiveness of Poland among foreign investors as the place with high intellectual potential.
Digital and process transformation as well as management model based on matrix structure and values – openness, teamwork and responsibility will enhance the implementation of the strategy goals.
Strategy implementation through business model programmes
Business model will support the strategy implementation. BGK has indicated 8 programmes through which it wants to address the market needs and challenges.
- The programmes list is not a closed list. Depending on social and economic needs we will modify it over time. In each of the programmes we think about innovative solutions also in line with the sustainable development principles – the president Beata Daszyńska-Muzyczka explains.
These programmes cover such areas as industrial, entrepreneurship and infrastructure development, energy, housing, social and territorial cohesion, health care and public finance.
Development banks do not focus on profit maximization, but on the effective support of the economy. However, BGK has shown the most important, in its view, indices and financial data.
The management of the bank assumes that the balance sheet total will be reduced from PLN 160 billion at the end of 2020 to around PLN 144 billion at the end of 2025 (CAGR -2 per cent). However, it needs to be noticed that in the last 4 years (between 2016 and 2020) it increased nearly 2.5 times. At the same time gross loans shall be increased: from almost PLN 46 billion at the end of last year to PLN 60,5 billion (CAGR +5.7 per cent). The engagement in economy financing shall increase to over PLN 460 billion (CAGR +9.8 per cent).
With fast development and scale of operations, C/I ratio will not cross 50 per cent (value with averaged strategy implementation time). Solvency ratio shall remain on the safe level above 13.5 per cent.
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