Letter of the President of the Management Board
to the annual report of the Bank Handlowy w Warszawie S.A.
Dear Sir or Madam,
I am pleased to present to you the financial report for 2022. I do so with even greater satisfaction, given how unique the year was. In a difficult macroeconomic and geopolitical environment, the Citi Handlowy team achieved record results, effectively supporting clients.
The war in Ukraine not only impacted our sense of security, but also caused profound changes in the global economy. Our bank was not indifferent to the humanitarian and refugee crisis caused by the conflict. We helped people affected by the war, and supported humanitarian organizations working for Ukrainian refugees. Over a thousand Citi employees and their families were involved in over 100 different projects.
In a market environment dominated by the events in Ukraine, we consistently executed the strategy adopted at the end of 2021. We worked very closely with our clients. We helped them effectively manage liquidity and currency risk on volatile markets. We supported their growth ambitions, provided financing and advice for their operations. We were there for our clients whenever expertise, experience, knowledge of the local market and global network reach were needed.
This was reflected in our results. Last year, the bank reported a record net profit of 1.6 billion zloty, with revenues growing 58% year-over-year.
Clients appreciate the fact that we are a stable and safe institution. Assets growth in our strategic segment, Citi Commercial Bank, reached record dynamics. In the Institutional Client Segment, foreign currency volumes were nearly 30% higher versus prior year. In the Consumer Banking business, the number of affluent clients reached a record high level.
We align our business goals with sustainable development objectives. This is an important part of our strategy. We support clients in green transformation, and we take environmental, social and corporate governance issues into account in our decision-making processes. In the first year of the ESG strategy execution, Citi Handlowy provided nearly 400 million zloty in green assets out of its three-year goal of 1 billion zloty.
The bank's support and commitment to clients were recognized. For the ninth consecutive year, Citi Handlowy won the Cash Management ranking by the prestigious Euromoney magazine in the Market Leader category. In addition, the bank was at the forefront among institutions offering the best financial services for wealthy clients. Once again we received the award for the highest turnover on the cash market. We were also pleased to be listed among the best employers and leaders in diversity management.
Our activity is based on solid foundations. We have strong capital and cost efficiency and our return on equity in 2022 was record high. All this makes the bank well equipped to face the challenges ahead of us.
While presenting to you the report for last year, I would like to thank the bank's employees for their commitment and our clients and shareholders for their trust.
Yours faithfully,
Elżbieta Czetwertyńska President of the Management Board of Bank Handlowy w Warszawie S.A.