I. Letter of the President of the Management Board
Dear All,
It is with great pleasure that I present to you the annual report for 2023. It was another record year for the bank. We achieved historically high net income, record revenues and profitability ratios. I can proudly say that our strategy focused on areas where we have significant competitive advantage, is working. We successfully support our clients with solutions based on local market knowledge and Citi's global expertise.
We are consistent in building a solid and safe institution. The numbers we report are the best illustration of this. Our capital adequacy ratio in 2023 increased significantly to 23.6%. ROE reached 29%, 5 percentage points above prior year. The cost- to-income ratio equaled only 32 percent. Investors are very positive about our results. This was reflected in a 34% increase in Citi Handlowy's share price by the end of 2023, compared to the end of 2022.
In the institutional banking segment, we were with our clients wherever they needed us. We co-financed their acquisition and investment plans. We were active in the commercial debt market. The volume of guarantees, letters of credit and factoring granted by Citi Handlowy almost tripled. Capitalizing on our experience in creating modern administration and implementing innovations in local governments, we acquired new municipal clients.
2023 was a very strong year for the consumer banking, including our strategic wealth management segment. The number of affluent clients reached a record level at the end of 2023, and their investment activity contributed to the increase of investment products balances by a quarter compared to last year. It was a great year in many areas for this segment. We saw dynamic increases in the number of customers using multi-currency payment services, credit card acquisitions and the volume of cash loans.
We achieved our results in an environment of economic slowdown in Poland and Europe, and above all with the ongoing war next to our eastern border. We have not forgotten about our Ukrainian fellow citizens. We continued our support aimed at those affected by this conflict. Environmental and social issues also remain important to the bank. In 2023, more than 3200 Citi volunteers were involved in community service. We are working to achieve climate neutrality in our own operations by 2030. Important part of this is the renovation of the bank's headquarters at Senatorska Street with the aim to achieve the highest standards of energy efficiency.
These achievements demonstrate that we are well positioned for the future and ready to help our clients grow their businesses.
I would like to thank the bank's employees for their professionalism and engagement, and our clients and shareholders for their trust.
Yours sincerely,
Elżbieta Czetwertyńska
President of the Management Board of Bank Handlowy w Warszawie S.A.
Elżbieta Czetwertyńska President of the Management Board