52. Specific activities in the area of risk management undertaken by the Group n 2023

During the twelve months ended 31 December 2023:

• The Group monitored the situation of its customers and adjusted its credit policy with a view to securing a good quality loan portfolio. As part of the measurement of credit exposures, the Group specifically took into account information on customers’ economic ties with counterparties in Ukraine, Belarus and Russia. For specific actions taken by the Group in the area of risk management in relation to the situation in Ukraine, see note “Impact of the geopolitical situation in Ukraine on PKO Bank Polski S.A. Group”.
• In terms of interest rate risk, the series of interest rate cuts initiated in the third quarter of 2023 reduced the reference rate to 5.75% at the end of 2023, which translated into an increase in valuations in the portfolio of debt instruments and derivatives that hedge the volatility of interest income. At the same time, the customers’ interest in mortgage loans temporarily based on fixed interest rates, in particular the „Safe 2% Loan”, continues, affecting the interest income sensitivity measures.
• The Group maintained a safe level of liquidity, allowing for a quick and effective response to potential threats. The Group structured its sources of funding accordingly by adjusting its deposit offering (in particular deposit interest rates) to meet current needs, while at the same time renewing long-term securities and covered bonds issued maturing in 2023 in the amount of approximately PLN 4.5 billion (including EUR 0.75 billion and PLN 1.25 billion).
• The tasks aimed at expanding the IT systems that enable the collection of ESG data, in particular on environmental risks, and preparing for the systemic disclosure of this data were carried out (see note ESG Risk management).