Financial and
ESG report 2020

21a. Loans and advances to customers mandatorily at fair value through profit or loss

Balance sheet value: 31.12.2020 31.12.2019
Mandatorily at fair value through profit or loss * 1 615 753 1 498 195
– Companies 12 889 18 435
– Individuals 1 602 752 1 479 645
– Public sector 112 115
* The above data includes the fair value adjustment, in the amount of: (116 761) (84 519)

The Group has separated credit exposures which include, in the interest rate definition, leverage/multiplier feature and presented aforementioned exposures in these financial statements as „Non-trading financial assets mandatorily at fair value through profit or loss – Credits and advances”. The provisions of IFRS 9 indicate that the multiplier feature modifies money over time and causes the need to apply fair value measurement, however the economic sense of the transaction, i.e. portfolio management not based on fair value and maintaining the portfolio to obtain cash flows from the contract, constitute characteristics of portfolios valued at amortized cost.

The Bank writes down the gross carrying amount of a financial asset when there is no reasonable probability that it will be fully (total writes off) or partially (partial writes off) recovered. Following the recorded partial writes off the Bank transferred to off-balance sheet evidence (deducting the carrying value of gross receivables) penalty interest amounting to PLN 514 million as at 31.12.2020.

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