35. Shareholders’ Equity
35a. Share capital
The share capital of the Bank Millennium S.A. (equal to the Group’s share capital) is PLN 1,213,116,777 divided into 1,213,116,777 shares of PLN 1 par value each, as presented by the table below.
Share capital
Par value of one share = 1 PLN.
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| Series/
issue |
Share type | Type of preference | Number of shares | Value of series/issue | Manner of capital
coverage |
Registration date | Right to dividend |
|---|---|---|---|---|---|---|---|
| A | registered founder | x2 as to voting | 106 850 | 106 850 | cash | 30.06.1989 | 30.06.1989 |
| B1 | registered ordinary | 150 000 | 150 000 | cash | 13.06.1990 | 01.01.1990 | |
| B2 | registered ordinary | 150 000 | 150 000 | cash | 13.12.1990 | 01.01.1990 | |
| C | bearer ordinary | 4 693 150 | 4 693 150 | cash | 17.05.1991 | 01.01.1991 | |
| D1 | bearer ordinary | 1 700 002 | 1 700 002 | cash | 31.12.1991 | 01.01.1992 | |
| D2 | bearer ordinary | 2 611 366 | 2 611 366 | cash | 31.01.1992 | 01.01.1992 | |
| D3 | bearer ordinary | 1 001 500 | 1 001 500 | cash | 10.03.1992 | 01.01.1992 | |
| E | bearer ordinary | 6 000 000 | 6 000 000 | cash | 28.05.1993 | 01.01.1992 | |
| F | bearer ordinary | 9 372 721 | 9 372 721 | cash | 10.12.1993 | 01.01.1993 | |
| G | bearer ordinary | 8 000 000 | 8 000 000 | cash | 30.05.1994 | 01.10.1993 | |
| H | bearer ordinary | 7 082 129 | 7 082 129 | cash | 24.10.1994 | 01.10.1994 | |
| Increasing of par value of shares from 1 to 4 PLN | 122 603 154 | surplus | 24.11.1994 | ||||
| 1:4 split | 122 603 154 | 05.12.1994 | |||||
| I | bearer ordinary | 65 000 000 | 65 000 000 | cash | 12.08.1997 | 01.10.1996 | |
| J | bearer ordinary | 196 120 000 | 196 120 000 | capitals of Bank Gdański S.A. | 12.09.1997 | 01.10.1996 | |
| K | bearer ordinary | 424 590 872 | 424 590 872 | cash | 31.12.2001 | 01.01.2001 | |
| L | bearer ordinary | 363 935 033 | 363 935 033 | cash | 26.02.2010 | 01.01.2009 | |
| Total number of shares | 1 213 116 777 | ||||||
| Total share capital | 1 213 116 777 | ||||||
In the reporting period there was conversion of 600 registered shares into the bearer shares. As a consequence number of registered shares decreased and as of 31.12.2016 amounted to 108 040, of which 61 800 are founders’ shares, privileged so that one share entitles to two votes at the Annual General Meeting.
Because the Bank is a public company whose shares are traded on the WSE primary market, the Bank has no detailed information about the shareholding structure as of December 31, 2016. Information on the ultimate parent company – Banco Comercial Portugues S.A. presented in the table below, is provided on the basis of data collected in connection with the registration of shareholders entitled to participate in the Bank’s General Shareholders Meeting held on 30 March 2016. In case of Nationale-Nederlanden OFE (former ING OFE) and AVIVA OFE BZ WBK the number of shares and their participation in the Bank’s share capital were calculated on the basis of annual asset structure, published as at 31 December 2016 (published on the websites, respectively: www.nn.pl and www.aviva.pl). For the purpose of the above calculation, the average Bank’s share price as at the above date was assumed to amount to 5.1481 PLN.
The largest shareholders of the Group’s parent entity – the Bank – (above 5% share in the vote at the General Shareholders Meetings) were as follows:
Shareholders as at 31.12.2016
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| Shareholder | Number of shares | % share in share capital | Number of votes | % share in votes at Shareholders’ Meeting |
|---|---|---|---|---|
| Banco Comercial Portugues S.A. | 607 771 505 | 50,10 | 607 771 505 | 50,10 |
| Nationale-Nederlanden Otwarty Fundusz Emerytalny | 120 634 080 | 9,94 | 120 634 080 | 9,94 |
| AVIVA Otwarty Fundusz Emerytalny AVIVA BZ WBK | 66 136 567 | 5,45 | 66 136 567 | 5,45 |
Shareholders as at 31.12.2015
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| Shareholder | Number of shares | % share in share capital | Number of votes | % share in votes at Shareholders’ Meeting |
|---|---|---|---|---|
| Banco Comercial Portugues S.A. | 607 771 505 | 50,10 | 607 771 505 | 50,10 |
| Nationale-Nederlanden Otwarty Fundusz Emerytalny | 115 615 810 | 9,53 | 115 615 810 | 9,53 |
| AVIVA Otwarty Fundusz Emerytalny AVIVA BZ WBK | 78 310 605 | 6,46 | 78 310 605 | 6,46 |
35b. Revaluation reserve
Revaluation reserve arises on the recognition of:
- effect of valuation (at fair value) of financial assets available for sale in the net amount, i.e. after having accounted for deferred tax. These values are taken off revaluation reserve at the moment of excluding the valued assets from the books of account – in full or in part or at the moment of recognising impairment (the effect of valuation is then put through the profit and loss account),
- effect of valuation (at fair value) of derivatives hedging cash flows in the net amount, i.e. having accounted for deferred tax. Revaluation reserve records such part of profits or losses connected with the derivatives hedging cash flows which is an effective hedge, while the ineffective part of the profits or losses connected with such hedging instrument is recognised in the profit and loss account,
- actuarial gains (losses) at their net value, i.e. after deferred tax. Aforementioned gains or losses result from the discounting of future liabilities arising from a provision created for retirement benefits. Valuation is done using the projected unit cost method. The parameters that have a significant impact on the amount of current liabilities are: the rate of mobility (rotation), the discount rate, the rate of wage growth. These values are not reclassified to the profit and loss account.
Revaluation reserve
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| 31.12.2016 | 31.12.2015 | |
|---|---|---|
| Effect of valuation (gross) | (228 347) | 22 532 |
| Deferred income tax | 43 385 | (4 282) |
| Net effect of valuation | (184 962) | 18 250 |
The sources of revaluation reserve are as follows (data in PLN thousand):
Revaluation reserve on available for sale financial assets 1.01.2016 – 31.12.2016
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| Gross value | Deferred tax | Total | |
|---|---|---|---|
| Revaluation reserve at the beginning of the period | 249 309 | (47 370) | 201 939 |
| Transfer to income statement of the period as a result of sale | (222 095) | 42 198 | (179 897) |
| Change connected with maturity of securities | (3 915) | 744 | (3 171) |
| Profit/loss on revaluation of available for sale financial assets, recognized in equity | (70 597) | 13 413 | (57 184) |
| Revaluation reserve at the end of the period | (47 298) | 8 985 | (38 313) |
Revaluation reserve on available for sale financial assets 1.01.2015 – 31.12.2015
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| Gross value | Deferred tax | Total | |
|---|---|---|---|
| Revaluation reserve at the beginning of the period | 67 937 | (12 908) | 55 029 |
| Transfer to income statement of the period as a result of sale | (41 852) | 7 953 | (33 899) |
| Change connected with maturity of securities | (301) | 57 | (244) |
| Profit/loss on revaluation of available for sale financial assets, recognized in equity | 223 525 | (42 472) | 181 053 |
| Revaluation reserve at the end of the period | 249 309 | (47 370) | 201 939 |
Revaluation reserve on cash flows hedge financial instruments 1.01.2016 – 31.12.2016
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| Gross value | Deferred tax | Total | |
|---|---|---|---|
| Revaluation reserve at the beginning of the period | (224 903) | 42 732 | (182 171) |
| Gains or losses on valuation of financial instruments recognized in equity | 25 877 | (4 917) | 20 960 |
| Transfer to income statement during period | 18 402 | (3 496) | 14 906 |
| Revaluation reserve at the end of the period | (180 624) | 34 319 | (146 305) |
Revaluation reserve on cash flows hedge financial instruments 1.01.2015 – 31.12.2015
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| Gross value | Deferred tax | Total | |
|---|---|---|---|
| Revaluation reserve at the beginning of the period | (204 690) | 38 891 | (165 799) |
| Gains or losses on valuation of financial instruments recognized in equity | (24 556) | 4 665 | (19 891) |
| Transfer to income statement during period | 4 343 | (824) | 3 519 |
| Revaluation reserve at the end of the period | (224 903) | 42 732 | (182 171) |
Revaluation reserve due to actuarial gains (losses) 1.01.2016 – 31.12.2016
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| Gross value | Deferred tax | Total | |
|---|---|---|---|
| Revaluation reserve at the beginning of the period | (1 874) | 356 | (1 518) |
| Discounting the obligations arising from the provision for retirement benefits | 1 449 | (275) | 1 174 |
| Revaluation reserve at the end of the period | (425) | 81 | (344) |
Revaluation reserve due to actuarial gains (losses) 1.01.2015 – 31.12.2015
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| Gross value | Deferred tax | Total | |
|---|---|---|---|
| Revaluation reserve at the beginning of the period | (2 643) | 502 | (2 141) |
| Discounting the obligations arising from the provision for retirement benefits | 769 | (146) | 623 |
| Revaluation reserve at the end of the period | (1 874) | 356 | (1 518) |
35c. Retained earnings
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| Supplementary capital | Reserve capital | General banking risk fund | Retained earnings | TOTAL | |
|---|---|---|---|---|---|
| Retained earnings at the beginning of the period 01.01.2016 | 472 697 | 2 682 768 | 228 902 | 679 929 | 4 064 296 |
| appropriation of profit, including: | |||||
| – transfer to supplementary capital | 1 | (1) | 0 | ||
| – transfer to reserve capital | 529 410 | (529 410) | 0 | ||
| net profit/ (loss) of the period | 701 252 | 701 252 | |||
| Retained earnings at the end of the period 31.12.2016 | 472 698 | 3 212 178 | 228 902 | 851 770 | 4 765 548 |
35d. Retained earnings
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| Supplementary capital | Reserve capital | General banking risk fund | Retained earnings | TOTAL | |
|---|---|---|---|---|---|
| Retained earnings at the beginning of the period 01.01.2015 | 506 599 | 2 002 567 | 228 902 | 779 702 | 3 517 771 |
| appropriation of profit, including: | |||||
| – transfer to supplementary capital | 3 014 | (3 014) | 0 | ||
| – transfer to reserve capital | (36 916) | 680 201 | (643 285) | 0 | |
| net profit/ (loss) of the period | 546 525 | 546 525 | |||
| Retained earnings at the end of the period 31.12.2015 | 472 697 | 2 682 768 | 228 902 | 679 929 | 4 064 296 |