5. Result on Financial Instruments and Foreign Exchange Result
5a. Result on investment financial assets
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| 01.01.2016 – 31.12.2016 | 01.01.2015 – 31.12.2015 | |
|---|---|---|
| Operations on debt instruments | 9 048 | 41 852 |
| Operations on equity instruments | 305 641 | 0 |
| Total | 314 689 | 41 852 |
As previously reported, as member of Visa Europe Ltd the Bank is among the beneficiaries of the transaction concluded on 2 November 2015 between Visa Inc. and Visa Europe Ltd. In result of the conversion the Bank received EUR 59.2 million in cash, 21 493 preference shares and is entitled to a deferred payment of approx. EUR 5 million minus adjustments.
The closing of the Visa transaction took place on 21st June 2016, and had a significant positive influence on the results of the Bank in the 1st half 2016: the gross impact on revenues totalled PLN 283 million. In order to determine the fair value of deferred payments and preferred shares, the time value of money, the time line for conversion of preferred stock in common stock of VISA and adjustments resulting from litigations (on-going or potential) against VISA and the Bank were considered.
In the fourth quarter of 2016, taking into account the practice adopted by the banking sector, as well as probability of potential litigations, the Bank reassessed the fair value of VISA transaction settlement. As a result deferred payment component was adjusted by PLN 22.6 million. Following the above, the Bank recognized income from the change in fair value of a deferred payment component which increased gross revenue on VISA settlement recognized in the first half of the year by additional amount of PLN 22.6 million.
5b. Result on financial instruments measured at fair value through profit and loss account and foreign exchange result
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| 01.01.2016 – 31.12.2016 | 01.01.2015 – 31.12.2015 | |
|---|---|---|
| Operations on securities | (623) | (7 269) |
| Operations on derivatives | 43 887 | 78 816 |
| Fair value hedge accounting operations, including: | 72 | 7 |
| – result from hedging derivatives | 866 | 330 |
| – result from items subjected to hedging | (794) | (323) |
| Foreign exchange result | 132 453 | 106 072 |
| Costs of financial operations | (1 815) | (2 242) |
| Total | 173 974 | 175 384 |
The Result on financial instruments valued at fair value through profit and loss and foreign exchange result account comprises profits and losses generated as a result of selling financial instruments allocated to financial assets/liabilities measured at fair value through the profit and loss account and the effect of their fair value valuation.
This category includes the instruments qualified as “held for trading” – at the moment the Group does not use the capacity to assign other instruments as valued at fair value through the profit and loss account at the initial booking (so-called fair value option).