Financial and
ESG report 2020

Credit risk adjustments (impairment and impairment charges)

The Group’s strategy and policy applicable to impairment and recognizing impairment charges has been presented in the Yearly Financial Report section 3 “Credit risk” in the part 9 on 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 (Art. 442 a-b)
CH-Mataria-w-Gdansku-oddzial-Millennium-3-big CH-Mataria-w-Gdansku-oddzial-Millennium-3-big

Information in that chapter and the indicated above documents are disclosed according to the requirements of Table EU CRB-A – Additional disclosure related to the credit quality of assets (EBA/GL/2016/11).

Gross carrying values of Specific credit risk adjustment General credit risk adjustment Accumulated write-offs Credit risk adjustment charges of the period Net values
Defaulted exposures Non-defaulted exposures (a+b-c-d)
1 Central governments or central banks 0 0 0 0 0 0 0
2 Institutions 0 0 0 0 0 0 0
3 Corporates 0 0 0 0 0 0 0
4 of which: Specialized lending 0 0 0 0 0 0 0
5 of which: SMEs 0 0 0 0 0 0 0
6 Retail 1 043 018 40 217 883 595 606 58 081 0 653 687 40 607 214
7  Secured by real estate property 916 521 35 484 492 519 582 44 116 0 563 698 35 837 316
8 SME’s 1 812 39 848 439 77 0 516 41 145
9 Non-SME’s 914 709 35 444 644 519 144 44 039 0 563 182 35 796 170
10 Qualifying revolving 126 496 4 733 391 76 024 13 965 0 89 989 4 769 898
11 Other retail 0 0 0 0 0 0 0
12 SME’s 0 0 0 0 0 0 0
13 Non-SME’s 0 0 0 0 0 0 0
14 Equity 0 0 0 0 0 0 0
15 Total IRB approach 1 043 018 40 217 883 595 606 58 081 0 653 687 40 607 214
16 Central governments or central banks 0 19 845 266 0 0 0 0 19 845 266
17 Regional governments or local authorities 0 270 286 0 540 0 540 269 746
18 Public sector entities 5 315 199 000 701 1 164 0 1 865 202 451
19 Multilateral development banks 0 182 591 0 0 0 0 182 591
20 International organizations 0 0 0 0 0 0 0
21 Institutions 0 758 148 0 0 0 0 758 148
22 Corporates 790 501 22 898 045 331 868 134 622 0 466 490 23 222 056
23 of which: SMEs 470 628 11 522 898 167 391 60 960 0 228 351 11 765 176
24 Retail 1 992 068 21 229 447 1 079 461 211 058 8 781 1 290 519 21 930 996
25 of which: SMEs 227 425 2 423 165 156 288 11 589 0 167 877 2 482 713
26 Secured by mortgages on immovable property 46 718 4 772 591 13 859 8 032 0 21 891 4 797 417
27 of which: SMEs 0 243 0 0 0 0 243
28 Exposures in default 2 794 584 0 1 211 583 0 7 928 1 211 583 1 583 000
29 Items associated with particularly high risk 6 700 47 6 700 0 0 6 700 47
30 Covered bonds 0 0 0 0 0 0 0
31 Claims on institutions and corporates with a short-term credit assessment 0 0 0 0 0 0 0
32 Collective investments undertakings 0 0 0 0 0 0 0
33 Equity exposures 0 280 599 0 0 0 0 280 599
34 Other exposures 0 3 541 356 1 255 873 0 0 1 255 873 2 285 483
35 Total standarized approach 2 794 584 69 204 784 2 674 602 347 385 8 781 3 021 987 68 977 381
36 Total 3 837 601 109 422 668 3 270 208 405 466 8 781 3 675 674 109 584 595
37 of which: loans 3 830 901 84 663 854 2 007 635 405 466 8 781 2 413 101 86 081 655
38 of which: debt securities 0 18 923 921 0 0 0 0 18 923 921
39 of which: off-balance sheet 26 468 12 050 881 13 946 30 857 8 781 44 803 12 032 546

Gross carrying values of Specific credit risk adjustment General credit risk adjustment Accumulated write-offs Credit risk adjustment charges of the period Net values
Defaulted exposures Non-defaulted exposures (a+b-c-d)
1 Agriculture, forestry and fishing 14 680 116 075 11 935 811 0 12 746 118 009
2 Mining and quarrying 1 739 312 030 835 1 153 0 1 988 311 781
3 Manufacturing 350 830 6 623 253 141 682 32 855 0 174 537 6 799 546
4 Electricity, gas, steam and air conditioning supply 532 574 084 623 4 231 0 4 854 569 761
5 Water supply 1 971 233 143 1 056 988 0 2 044 233 070
6 Constructiom 50 504 1 594 852 34 128 10 297 0 44 425 1 600 931
7 Wholesale and retail trade 166 550 7 816 852 116 178 44 468 0 160 647 7 822 755
8 Transport and storage 80 959 3 928 649 40 419 12 306 0 52 725 3 956 884
9 Accomodation and food service activities 91 025 133 570 41 689 902 0 42 591 182 004
10 Information and communication 6 972 1 502 033 5 095 16 702 0 21 797 1 487 208
11 Financial and insurance activities 8 385 389 047 5 832 2 838 0 8 671 388 761
12 Real estate activities 45 733 1 287 397 5 531 9 626 0 15 157 1 317 973
13 Professional, scientific and technical activities 42 491 297 975 32 587 1 512 0 34 099 306 367
14 Administrative and support services activities 110 022 662 389 36 798 2 238 0 39 036 733 375
15 Public administration and defence, compulsory social security 0 267 608 0 541 0 541 267 067
16 Education 1 968 104 258 1 716 364 0 2 080 104 146
17 Human healyh services and social work acivities 3 062 174 530 1 705 1 539 0 3 244 174 347
18 Arts, entertainment and recreation 1 690 37 634 1 815 127 0 1 942 37 382
19 Other services 3 171 55 634 2 065 334 0 2 399 56 406
20 Total 982 281 26 111 013 481 689 143 834 0 625 523 26 467 772

Gross carrying values of Specific credit risk adjustment General credit risk adjustment Accumulated write-offs Credit risk adjustment charges of the period Net values
Defaulted exposures Non-defaulted exposures (a+b-c-d)
1 European Union (EU) 38 337 1 094 965 16 635 5 184 58 21 819 1 111 483
2 Poland 3 637 649 106 657 517 3 136 916 391 838 8 689 3 528 754 106 766 412
3 Other EU countries 71 566 830 837 52 299 6 529 27 58 828 843 575
4 Other geographical areas 90 050 839 348 64 358 1 915 8 66 273 863 126
5 Total 3 837 601 109 422 668 3 270 208 405 466 8 781 3 675 674 109 584 595

Accumulated specific credit risk adjustment Accumulated general credit risk adjustment
1 Opening balance 1 966 675
2 Increases due to amounts set aside for estimated loan losses during the period 1 667 413
3 Decreases due to amounts reversed for estimated loan losses during the period (1 038 000)
4 Decreases due to amounts taken against accumulated credit risk adjustments (220 732)
5 Transfers between credit risk adjustments 0
6 Impact of exchange rate differences 20 250
7 Business combinations, including acquisitions and disposals of subsidiaries 0
8 Other adjustments (17 973)
9 Closing balance 2 377 634
10 Recoveries on credit risk adjustments recorded directly to the statement of profit or loss 50 818
11 Specific credit risk adjustments directly recorded to the statement of profit or loss 19 631

Gross carrying values
defaulted exposures
1 Opening balance 1 800 414
2 Loans and debt securities that have defaulted or impaired since the last reporting period 1 505 026
3 Returned to non-defaulted status 190 209
4 Amounts written off
5 Other changes
6 Closing balance 3 115 231

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 22 to the Yearly Financial Report), loans and borrowings granted to customers (Note 21 to the Yearly Financial Report). (Art. 442.f).

At the same time, in the chapter “Credit risk” in the Yearly Financial Report and the Management Board Report, the Bank/Group presents a general assessment of the credit risk level and assessment of changes in this respect, 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 agreed changes in the impairment and impairment charges are presented in the Notes (21) to the Yearly Financial Report. (Art. 442.i)

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