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Integrated
Report
2023

Creation of value

See report

BGK's strategy for 2021-2025 is based on five pillars:

Sustainable development
Social commitment
International business and cooperation
Digital and process transformation
Effective management model

We monitor the economic environment and we support and stabilise the market.

We actively respond to external factors:

  • sustainable economic development - to take countercyclical measures,
  • low-carbon economy - to make our economy grow in a sustainable way,
  • territorial cohesion - to promote the economic integrity of all regions of the country,
  • use of EU funds - to keep an appropriate level of investment in the economy.

Using the available resources, we create value for our stakeholders.

Value creation model

OUTCOMES

  • PLN 356 billion of generated new support for the economy thanks to own financing granted, commissioned actvities and mobilised capital, of which PLN 59 billion was awarded under the de minimis guarantee programme
  • we obtained a second credit rating, thanks to which we diversified our sources of financing by carrying out issues of notes in the US and Japan
  • guarantees provided from the National Guarantee Fund and the Crisis Guarantee Fund enabled the provision of PLN 81.5 billion in loans
  • 205 social economy entities as beneficiaries of our support
  • 10,000 beneficiaries of the “Voluntary service is great!” programme
  • we took the 3rd place in the Polish Top Employer ranking, the highest among banks
  • our project “Sustainable development” won the 1st place in the IPMA Polish Project Excellence Award 2023 in the organisational projects category
Institutional capital

Resources

Institutional capital guarantees our stability and defines our activities.

  • A 100-year legacy and mission of a development bank
  • Mandate from the government and activities regulated by the Act on BGK
  • Successful completion of EC pillar assessment for an implementing partner of EU funds

Capital management

We fulfill BGK's mission in cooperation with numerous Polish and international partners, with the support of the State Treasury.

Outcomes

The institutional capital, as a complementation of other capitals employed by the Bank, supports socio-economic development of Poland.

  • 20 flow funds operated by the Bank
  • PLN 213.9 billion in bonds issued for the benefit of flow funds
  • Resources from international financial institutions and EUR funds for entities found in the financial gap
  • Network of more than 100 cooperating institutions (banks and non-banking financial institutions)
Financial capital

Resources

A pool of funds available to BGK from external financing, equity, grants or generated from investments and from operating activities.

  • PLN 161.6 billion in deposits at the end of 2023
  • PLN 39.4 billion of own funds and issued own bonds with a total nominal value of PLN 1.8 billion, and in 2023 we issued PLN 40.4 billion for flow funds
  • PLN 34.4 billion of received guarantees and credit facilities

Capital management

When managing the financial capital we seek to maximise the efficiency of its use, taking utmost care to safeguard the funds entrusted to us. Our activities in this area are aimed at creating value for stakeholders, while considering the pre-defined risk appetite. Based on our strategy and business model programmes, we manage the financial capital in such a way as to support our other capitals

Outcomes

Our special role and mission as a development bank, mandate from the government and public trust help gain financial capital. Thanks to the funds we support the economic growth of Poland and respond quickly to the changing economic and social needs.

  • PLN 259 billion in financing awarded in 2023 as part of own (PLN 59 billion) and commissioned activities (PLN 200 billion), including activities attributable to flow funds
  • PLN 9.5 billion of interest expenses
  • PLN 692.7 million of the Bank's Total Tax Contribution in Poland
  • The highest result in the Bank's history, although profit maximisation is not our objective
  • Credit ratings assigned by external agencies are equal to Poland's
  • High total capital ratio, offering potential for further financing of Poland's economy
Human capital

Resources

Competencies and experience of employees and their approach to the organisation and risk management, ethical values, loyalty and drive for improving processes and services.

  • 2,320 employees as at the end of 2023
  • PLN 14 million invested in training - an average of PLN 6,000 per employee
  • 425 employees completed the developing competencies of the future programme from September 2022 to the end of 2023

Capital management

We make efforts not only to enhance the competences of our employees, but also to care for their wellbeing and ensure effective cooperation. We build BGK's organisational culture based on our values of openness, teamwork and responsibility, in line with our mission to support sustainable social and economic development. Our internship and scholarship programmes help popularise competences of key importance for the successful future of the society.

Outcomes

We build human capital by developing competences and sharing knowledge, e.g. as part of the BGK Summer Academy. The effectiveness of our actions is confirmed by top places in the rankings of employers.

  • Top places in many employer rankings, including TOP Employer 2023 and Top Quality HR 2023 awards
  • Ten years is the average period of employment at the Bank in managerial positions
  • 51 internal promotions to managerial positions
Intellectual capital

Resources

Our intellectual property, licences, data security management, and organisational capital, e.g. hidden knowledge, systems, procedures and protocols.

  • Unique knowledge of BGK employees
  • Process and digital transformation
  • Knowledge-sharing: 3W Congress, BGK Summer Academy, Bank Horizons, Internship Bank development programme, online courses for entrepreneurs implemented in cooperation with PARP, #CyberAkademiaBGK, Sustainability Ambassador Programme

Capital management

We create products and services with social needs in mind. We employ unique competencies and expertise to pursue our mission of a development bank, distribute EU funds and manage special purpose funds. We grow our intellectual capital by investing in technologies to deliver products and services seamlessly.

Outcomes

We expand our offering to meet current socio-economic needs of the country. We conduct customer experience and satisfaction surveys. We pursue cyber security policies and promote the principles of safe use of the internet. We support innovation, combining competences and needs of the science, business and administration world to be able to implement projects as part of the 3W initiative and other tasks.

  • 135 completed internal projects covered by ESG scoring
  • 68 process optimisations implemented
  • 1,500 participants in the 3W Congress, 70 participants in the BGK Summer Academy, 60 participants in the Bank Horizons programme, 1,400 participants in training offered by PARP
  • 1,307 medical students received support from the Medical Studies Loan Fund
  • 383 managers attended a digital competence conference
Social and relational capital

Resources

Common standards, values and conduct, relations with key stakeholders, trust and willingness to make a commitment. Intangible assets related to the brand and reputation developed by the organisation.

  • 10,100 BGK's partners
  • 83,000 entrepreneurs benefited from de minimis guarantees
  • 677 employees engaged in voluntary work
  • PLN 102.5 million donations made to BGK's foundations

Capital management

We invest in social capital which contributes to economic growth. We finance social projects, such as activities of social economy enterprises and investment projects eliminating architectural barriers in buildings and public spaces. We activate local communities, educate children and the youth, renovate historical monuments. We make effort to nurture relationships with our stakeholders.

Outcomes

We have a direct impact on our stakeholders, but also an indirect impact on the entire environment, e.g. families of our employees, potential employees, people under the care of social organisations with which we cooperate.

  • 98 financings provided to medical entities, mostly hospitals
  • 201 local government units received financing from the Bank
  • 2,900 local government units and their associations received funding commitments under the Government Strategic Investment Programme and/or the Government Programme for Restoration of Monuments
  • More than 664,000 people per year will use the facilities where architectural barriers have been eliminated or reduced thanks to our funding
  • 570 completed projects/subsidised initiatives by the J.K. Steczkowski BGK Foundation
Infrastructure capital

Resources

Physical facilities used by the organisation to design and deliver products and services (offices, branches, facilities), also technical infrastructure and IT systems of the Bank.

  • Offices in 16 regions, historical registered office of the Bank undergoing refurbishment and temporary BREEAM Interim-certified office
  • Upgrade and development of IT systems as part of digital transformation
  • Process robotisation

Capital management

We are working on digitising processes as part of digital transformation. We enhance operational and business efficiency through robotisation. We modernise workstations and optimise the use of office space

Outcomes

With the processes and technical infrastructure being developed we address challenges and respond to the specific needs of stakeholders. We refurbish our establishments so that they are fully accessible to people with disabilities.

  • The role of a clearing agent for payments made in the public finance sector (BLIK payments)
  • Deployment of 15 robots in 2023 (20 robots in total deployed at the Bank since 2022)
  • Technical debt cut by 4.5 pp and 21% more completed projects and system changes YoY
  • Uptime of banking systems at 99.93%
Natural capital

Resources

All renewable and non-renewable natural resources used by the Bank or on which the Bank has an influence (water, air, solar energy, wind, minerals, biodiversity and health of ecosystems, etc.).

  • 2nd edition of the Re:Generation programme implemented in the form of volunteer work

Capital management

The Bank does not make significant use of natural capital in its operations. We manage the capital mostly by financing environmental projects (e.g. thermomodernisation and refurbishment bonus, financing of RES). In addition, within our organisation we monitor and reduce the consumption of water, energy, fuels and office supplies. We raise ecological awareness of employees by engaging them in voluntary work aimed at protecting nature as well as in other environmental projects

Outcomes

We have both a positive and a negative impact on the environment, e.g. through financing that supports sustainable investment projects and through financing granted in the Strategic Security business model, whose objectives include ensuring stable energy supplies in Poland.

  • More than 23 ha of area covered by active conservation measures in the Biała Woda, Bór na Czerwonem and Morysin nature reserves, in partnership with UNEP/GRID
  • PLN 159.6 million of bonuses and PLN 173.1 million grants awarded from the Thermomodernisation and Renovation Fund
  • 6,350 t CO2 eq is our annual carbon footprint (Scope 1, location-based Scope 2 and limited Scope 3)
  • Conclusion of contracts to finance projects contributing to cutting transportation emissions by 40,377 t CO2 eq per annum
  • Implementation of a multi-year investment programme co-financed by BGK, which is estimated to generate annual emission reduction from industrial activities of 2,466 thousand t CO2 eq in 2030

Business model programmes

The business foundation for the implementation of strategic objectives are the business model programmes, through which we fulfill the mission and vision in relation to the needs of the economy.

Industrial development
Infrastructure, transport and logistics
Entrepreneurship development
Strategic security
Healthcare
Public finance
Social and territorial cohesion
Housing
Wworzenie wartości

SMEs struggle to obtain financing due to lack of credit history or insufficient collateral. Guarantees and sureties can improve their creditworthiness, allowing them to access higher loans.

92,372

business entities used BGK's portfolio guarantee facilities in 2023. One in four zlotys of the total loan to SMEs is covered by collateral in the form of a de minimis guarantee.