Articles 442.a, 442.b
The Group’s strategy and policy applicable to impairment and recognizing impairment charges has been presented in the Report, section 3 “Credit risk” in the part devoted to financial risk management. It contains a detailed description of:
- Organization of the process to identify and measure impairment of credit exposures in order to determine adjustments for specific and general credit risk
- Analysis of individual impairment of credit receivables
- Collective analysis of a credit portfolio
The amount of credit risk exposures (without counterparty credit risk) after accounting offsets and without taking into account the effects of credit risk mitigation, broken down by different types of exposure classes (Original exposure) calculated for own funds requirements purposes.
Original amount of credit risk exposures (without counterparty credit risk) after accounting offsets and without taking into account the effects of credit risk mitigation, broken down by different types of exposure classes
|Amount of credit risk exposures (without counterparty credit risk) after accounting offsets and without taking into account the effects of credit risk mitigation, broken down by different types of exposure classes (Original exposure)||Amount||Average amount in 2014 (quarterly)|
|Retail portfolio, including:||36.248.794||35.657.583|
|* Loans secured by real estate (IRB RRE class)||27.172.713||27.182.189|
|* Qualifying revolving retail exposures (IRB QRRE class)||2.985.141||2.985.111|
|* Other retail loans||4.212.008||3.611.793|
|* Small businesses||1.878.933||1.878.490|
|Corporate lending portfolio||17.357.592||16.412.082|
|Amounts due from institutions||2.498.415||2.711.870|
|Amounts due from government sector and central banks||9.604.655||10.944.689|
The Group does not present a geographical distribution of its exposures, since it has no material exposure to counterparties located outside Poland.
The Yearly Financial Report (in section 3e „Loans and borrowings” of the chapter 8 on financial risk management) presents detailed figures pertaining to:
- Structure of loans and borrowings granted to customers and banks and key credit portfolio quality parameters:
- Loans not classified as past due and without recognized impairment and distribution of exposures to risk grades used in the internal ratings system.
- Past due loans without recognized impairment and distribution of exposures by time past due and credit portfolio (corporates, mortgage loans, other retail loans)
- Total loans without recognized impairment
- Impairment charges
- Loans and borrowings with recognized impairment and distribution by type of analysis (individual, collective) and credit portfolio
- Loans and borrowings with impairment recognized in individual analysis and distribution by type of credit product, coverage by impairment charges (adjustments for specific credit risk) and currencies
- Size and structure of loans and borrowings coverage by the restructuring of receivables
- Distribution of exposures by industry, broken down into exposure classes/product types (section 3i “Concentration of the risk of financial assets with the credit risk exposure” in the financial risk management chapter).
The Group has presented the distribution of the key receivables portfolio by the residual maturity for main exposure types: deposits and loans granted to banks and other monetary institutions (Note 15b to the Yearly Financial Report), loans and borrowings granted to customers (Note 18b to the Yearly Financial Report).
The table below presents the distribution of credit receivables by significant industry and presentation of the amounts of impaired exposures, past due exposures, impairment charges (specific and general credit risk adjustments), amounts written down from the balance sheet in connection with revaluation charges.
Distribution of credit receivables by significant industry and presentation of the amounts of impaired exposures, past due exposures, impairment charges (specific and general credit risk adjustments), amounts written down from the balance sheet in connect
|Industry||Impaired balance-sheet exposures||Balance-sheet exposures > 4 days past due||Adjustments for general credit risk (IBNR)||Adjustments for specific credit risk (impaired)||Amounts written off from the balance sheet in 2014|
|D||Generation and supply of electricity, gas, water||728||1.324||686||420||41|
|E||Supply of water; sewage and waste||2.825||5.719||529||1.634||91|
|G||Commerce and repairs||175.437||264.788||17.193||123.532||26.300|
|H||Transportation and warehousing||78.973||372.159||9.893||40.168||6.519|
|I||Hotels and restaurants||6.389||12.328||2.092||4.733||829|
|J||Information and communication||13.912||25.824||2.107||11.788||86|
|K||Financial and insurance business||34.220||39.333||914||21.489||535|
|L||Real estate administration||99.014||121.952||28.756||37.300||175|
|M||Other professional, scientific and technical activity||17.687||27.905||2.220||13.830||2.710|
|R||Culture, recreation and entertainment||3.180||4.052||173||2.425||164|
At the same time, part “Credit risk” of the Management Board Activity Report presents a general assessment of the credit risk level and assessment of changes in this respect observed in the current year, along with key asset quality indicators. It also presents an assessment of concentration levels in the credit portfolio, broken down into product types and industries.
The Group does not information broken down by significant geographical areas, due to immaterial exposures to counterparties having site in countries other than Poland.
The agreed changes in the specific and general credit risk adjustments for impaired exposures are presented in Note 8 to the Yearly Financial Report.