Financial and
ESG report 2020

21g. Movements in impairment allowances for loans and advances to customers carried at amortised cost

01.01.2020 – 31.12.2020 01.01.2019 – 31.12.2019
Balance at the beginning of the period 1 961 618 1 758 867
Change in value of provisions: 411 017 202 751
Impairment allowances created in the period 1 667 413 1 194 987
Amounts written off (220 681) (302 480)
Impairment allowances released in the period (1 038 000) (754 495)
Sale of receivables (59 662) 0
KOIM created in the period* 37 798 45 900
Changes resulting from FX rates differences 20 250 5 179
Other 3 899 13 661
Balance at the end of the period 2 372 635 1 961 618
* In accordance with IFRS 9, the Group calculates interest on the loan portfolio with a recognized impairment based on the net exposure value. For this purpose, the so-called impaired interest adjustment (“KOIM") is calculated and recorded as a reduction of interest income. Aforementioned KOIM adjustment in the balance sheet is presented as an impairment allowances, and as a consequence the reconciliation of the change in impairment allowances requires consideration of the KOIM recognized in the interest income.

The Group records POCI assets in the balance sheet as a result of recognition of impaired loans after the merger with Euro Bank and takeover of SKOK Piast. At the time of the merger, the aforementioned assets included in the Bank’s books at fair value.

The value of POCI assets is as follows:

Gross balance
sheet value
Accumulated
impairment
Net balance
sheet value
31.12.2020
– Companies 59 255 313
– Individuals 399 392 (26 607) 372 784
– Public sector 0 0 0
31.12.2019
– Companies 101 (23) 78
– Individuals 523 989 (45 236) 478 753
– Public sector 0 0 0

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