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ING Bank Śląski S.A. Group has compiled the annual report in line with the best global practices of integrated reporting. To help readers use the interactive tools, we prepared a user guide with key features. We encourage you to watch a short animated video before reading the report.

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Integrated Annual Report
of ING Bank Śląski S.A. 2019

Value creation model

katowice_ing_01-2020_rk_1179 katowice_ing_01-2020_rk_1179
  • [103-1]
    Explanation of the material topic and its Boundary
  • [103-2]
    The management approach and its components
  • [103-3]
    Evaluation of the management approach

Together with the Management Board and senior leaders, we have developed a detailed value creation model. It was built on the basis of the International Integrated Reporting Council’s (IIRC) methodology. The value creation model is our reply to the questions about: what value we create for our clients, shareholders, employees, society and the environment and how it is measured and maximised. All this is to help us constantly improve the strategic management of our organisation.

Capitals used

It comprises our employees, their knowledge, competence and engagement. It also comprises our clients who cooperate with us when developing our products and services.
How we manage that capital?

We support our employees in their development. We give them tools and the opportunity to make the most of their potential. We also take care of diversity and well-being. We keep adding new elements of well-being. We are with our clients at each stage of their lives and as they take decisions. We co-create products with them and implement improvements as part of the PACE methodology.

Capital at year end
Measure 2018 2019
Headcount (FTEs) 8,034 8,072
Employee turnover ratio 7.0% 7.2%
Women in management positions 231 234
Number of primary clients (million) 1.83 1.97

Effects of capital processing in 2019

  • The sustainable engagement ratio among employees was 82% during the WPC survey in October 2018 (the survey is conducted every two years).
  • We acquired 474 thousand new retail clients and 13 thousand new corporate clients.
Illustrative influence on other capitals
  • Influence on financial capital due to the remuneration costs incurred.
  • Influence on intellectual capital due to internal training courses for our employees and knowledge sharing.
  • Influence on environmental capital due to internal- and external campaigns to raise environmental awareness.
  • Influence on social capital due to employee voluntary activities in social organisations.
Financial capital is understood as funds entrusted to us by our clients, capital provided by our shareholders and bondholders, as well as the net result generated by our bank.
How we manage that capital?

We manage financial capital so as to maximise the effectiveness of its utilisation within a pre-defined risk appetite. The effectiveness of capital utilisation is measured by the cost-to-income ration and return on equity. Furthermore, we take care of the safety of deposits entrusted to us and fulfilment of requirements, including but not limited to requirements in terms of capital and liquidity.

Capital at year end
Measure 2018 2019
Equity
(PLN million)
13,321.6 15,223.3
Deposits accumulated (PLN million) 117,682.5 130,473.5
Subordinated liabilities (PLN million) 1,076.9 2,131.1
Total capital ratio 15.58% 16.87%

Effects of capital processing in 2019

  • The cost-to-income ratio was 43.1%.
  • Return on equity (ROE) stood at 11.6%.
  • Interest expense totalled PLN 986.2 million.
  • Dividend per share was PLN 3.50.
Illustrative influence on other capitals
  • Influence on human capital due to the incurred costs of employee remuneration.
  • Influence on intellectual capital due to the incurred costs of training courses and development activities addressed to employees.
  • Influence on environmental capital due to the issue of green covered bonds.
  • Influence on social capital due to donations given.
Our skills and the knowledge we use to create state-of-the art products and services that respond to the existing and future needs of our clients.
How we manage that capital?

We organise training courses and traineeship programmes. We give access to e-learning courses. Our employees are speakers at conferences. We work based on our own PACE methodology. We use Agile when organising work.

Capital at year end
Measure 2018 2019
Number of Agile trainers 15 15
Number of development activities per employee 10.6 12.5
Employees’ participation in internal traineeship programmes 180 150

Effects of capital processing in 2019

  • Since 2016, we have completed 80 initiatives based on PACE methodology and implemented 50 of them.
  • We sold 78% of cash loans via direct channels.
  • We were the first bank in Poland to have implemented the option to view accounts with other banks.
  • 26% of mortgage loans granted to clients were fixed-rate mortgage loans.
Illustrative influence on other capitals
  • Influence on social capital due to creation of new products and services adjusted to suit the client needs.
  • Influence on financial capital by lowering the costs of training due to promotion of in-house training courses.
  • Influence on human capital due to an increase in the competences and skills of the employees.
  • Influence on environmental capital due to the creation of solutions that have a positive impact on the environment.
It is the natural environment on which we mainly have indirect impact through the projects we finance. We are doing our best to minimise our direct impact.
How we manage that capital?

In 2018, we implemented the Green Statement, whereby we announced that we would not finance any coal-based businesses. We are going to increase our exposure to environment-friendly projects. We are reducing our direct environmental impact. Environmental goals are a part of our Sustainability Strategy.

Capital at year end
Measure 2018 2019
Electricity consumption (kWh) 30,558,890 31,920,924
Water consumption (m3) 57,130 58,284
Greenhouse gas emissions (tonnes CO2e) 6,021 3,268
Recycling 100% 100%

Effects of capital processing in 2019

  • 100% of agreements with counterparties include a clause that refers to respect for natural environment.
  • 100% of energy comes from renewable resources.
  • We reduced our greenhouse gas emissionsby 89% from 2014.
  • We granted PLN 231.6 million worth of retail eco-loans.
Illustrative influence on other capitals
  • Influence on human capital due to promotion of sustainable transport.
  • Influence on financial capital by increasing the funding for environment-friendly projects.
  • Influence on intellectual capital by looking for the urban mobility platform solutions.
  • Influence on social capital due to implementation of environmental-friendly products for the clients
Relationships with stakeholders from our surroundings – clients, employees, vendors, local communities, social organisations and charitable organisations.
How we manage that capital?

We care about the relationships with all of our stakeholders. We know that we have direct impact on our stakeholders and also indirect impact on the entire environment, such as the families of our employees, charges of social organisations with which we cooperate, participants of our partnerships, etc. We are in dialogue, we are open and accessible in all communication channels.

Capital at year end
Measure 2018 2019
Hours spent on voluntary activity 5,221 7,283
Number of students in the “Professional Artist” programme 879 633
Number of runners in “Run Warsaw” 6,704 6,165

Effects of capital processing in 2019

  • We implemented the Cancer Prevention Programme (592 people took advantage of the programme).
  • The ING for Children Foundation hosted 1,054 participants and their guardians during the Smile Camps.
  • More than 30 teams enrolled to implement the ING Challenge as part of the partnership with Zwolnieni z Teorii.
Illustrative influence on other capitals
  • Influence on human capital by promoting healthy lifestyle and social engagement.
  • Influence on financial capital due to donations given.
  • Influence on intellectual capital due to mentoring of our employees and the development of their soft skills.
  • Influence on environmental capital due to the implementation of eco-volunteering projects.

Our value creation model

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