Financial and
ESG report 2020

Statement of compliance with the international financial reporting standards

These financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (‘IFRS’), as adopted by the European Union and with respect to matters not regulated by the above standards, in accordance with the accounting principles as set out in the Accounting Act dated 29 September 1994 (unified text - Official Journal from 2021, item 217) and the respective bylaws and regulations and the requirements for issuers of securities admitted or sought to be admitted to trading on an official stock-exchange listing market.

These financial statements meet the reporting requirements described in the Regulation of the Minister of Finance of March 29, 2018 regarding current and periodic information published by issuers of securities and conditions for recognizing as equivalent information required by the laws of a non-member state (Journal of Laws of 2018, item 757).

This financial report was approved for publication by the Management Board on 22 February 2021.

Change of apllied accounting principles introduced in 2020

In the course of 2020, the Group changed the presentation of provisions for legal risk connected with FX mortgage loans which in the financial statements for year 2019 were recognized as provisions for pending legal issues. Having in mind that part of these provisions  relates to the new estimation of cash flows from the mortgage loan portfolio, the Group allocated these provisions to individual credit exposures and presented in these financial statements as a decrease in the gross value of mortgage loans for which contractual cash flow are expected to reduce according to IFRS9. In order to ensure comparability, the Group made appropriate balance sheet and cash flow adjustments to the data presented in annual financial statements 2019 as illustrated in the tables below.

In accordance with IAS 1, an entity additionally presents a third balance sheet at the beginning of the previous period if it applied the change in accounting policy retrospectively. In this case, it is not necessary (in accordance with the provisions of IAS 1) because the retrospective restatement did not affect the information in the balance sheet prepared at the beginning of the previous period (i.e. as at December 31, 2018).

Assets

Amount ‘000 PLN Note data as at 31.12.2019 published in annual 2019 report impact of accounting principles change restated data as at 31.12.2019, presented in hereby report
Cash, cash balances at central banks 17 2 203 444 0 2 203 444
Financial assets held for trading 18 986 728 0 986 728
Derivatives 112 485 0 112 485
Equity instruments 210 0 210
Debt securities 874 033 0 874 033
Non-trading financial assets mandatorily at fair value through profit or loss, other than Loans and advances to customers 19 169 610 0 169 610
Equity instruments 66 609 0 66 609
Debt securities 103 001 0 103 001
Financial assets at fair value through other comprehensive income 20 21 870 164 0 21 870 164
Equity instruments 29 643 0 29 643
Debt securities 21 840 521 0 21 840 521
Loans and advances to customers 21 69 754 938 (139 548) 69 615 390
Mandatorily at fair value through profit or loss 1 498 195 0 1 498 195
Valued at amortised cost 68 256 743 (139 548) 68 117 195
Financial assets at amortised cost other than Loans and advances to customers 22 1 037 869 0 1 037 869
Debt securities 48 153 0 48 153
Deposits, loans and advances to banks and other monetary institutions 784 277 0 784 277
Reverse sale and repurchase agreements 205 439 0 205 439
Derivatives – Hedge accountingc 23 43 159 0 43 159
Investments in subsidiaries, joint ventures and associates 24 0 0 0
Tangible fixed  assets 25 666 330 0 666 330
Intangible fixed assets 26 342 653 0 342 653
Income tax assets 541 828 0 541 828
Current income tax assets 10 310 0 10 310
Deferred income tax assets 27 531 518 0 531 518
Other assets 28 399 778 0 399 778
Non-current assets and disposal groups classified as held for sale 29 39 441 0 39 441
Total assets 98 055 942 (139 548) 97 916 394

Liabilities and equity

Amount '000 PLN Note data as at 31.12.2019 published in annual 2019 report impact of accounting principles change restated data as at 31.12.2019, presented in hereby report
LIABILITIES
Financial liabilities held for trading 30 353 000 0 353 000
Derivatives 150 735 0 150 735
Liabilities from short sale of securities 202 265 0 202 265
Financial liabilities measured at amortised cost 85 853 762 0 85 853 762
Liabilities to banks and other monetary institutions 31 1 578 848 0 1 578 848
Liabilities to customers 32 81 454 765 0 81 454 765
Sale and repurchase agreements 33 90 712 0 90 712
Debt securities issued 34 1 183 232 0 1 183 232
Subordinated debt 35 1 546 205 0 1 546 205
Derivatives – Hedge accounting 23 426 847 0 426 847
Provisions 36 304 726 (139 548) 165 178
Pending legal issues 251 333 (139 548) 111 785
Commitments and guarantees given 53 393 0 53 393
Income tax liabilities 38 590 0 38 590
Current income tax liabilities 38 590 0 38 590
Deferred income tax liabilities 37 0 0 0
Other liabilities 38 2 137 498 0 2 137 498
Total Liabilities 89 114 423 (139 548) 88 974 875
EQUITY
Share capital 39 1 213 117 0 1 213 117
Own shares 0 0 0
Share premium 1 147 502 0 1 147 502
Accumulated other comprehensive income 39 70 093 0 70 093
Retained earnings 39 6 510 807 0 6 510 807
Total equity 8 941 519 0 8 941 519
Total equity and total liabilities 98 055 942 (139 548) 97 916 394

A. Cash flows from operating activities

Amount ‘000 PLN data for period 1.01.2019 – 31.12.2019 published in annual 2019 report impact of accounting principles change restated data for period 1.01.2019 – 31.12.2019, presented in hereby report
Profit (loss) after taxes 560 732 0 560 732
Total adjustments: (1 131 406) 0 (1 131 406)
Interest received 3 159 255 0 3 159 255
Interest paid (836 834) 0 (836 834)
Depreciation and amortization 180 872 0 180 872
Foreign exchange (gains)/ losses (12 314) 0 (12 314)
Dividends (3 219) 0 (3 219)
Changes in provisions 190 974 (139 548) 51 426
Result on sale and liquidation of investing activity assets (25 294) 0 (25 294)
Change in financial assets held for trading (436 839) 0 (436 839)
Change in loans and advances to banks 6 157 0 6 157
Change in loans and advances to customers (7 039 038) 139 548 (6 899 490)
Change in receivables from securities bought with sell-back clause (loans and advances) 32 227 0 32 227
Change in financial liabilities valued at fair value through profit and loss (held for trading) 165 703 0 165 703
Change in deposits from banks (4 302 689) 0 (4 302 689)
Change in deposits from customers 8 022 526 0 8 022 526
Change in liabilities from securities sold with buy-back clause 46 385 0 46 385
Change in debt securities (100 664) 0 (100 664)
Change in income tax settlements (84 372) 0 (84 372)
Income tax paid (319 479) 0 (319 479)
Change in other assets and liabilities 165 954 0 165 954
Other 59 283 0 59 283
Net cash flows from operating activities (570 674) 0 (570 674)

B. Cash flows from investing activities

Amount ‘000 PLN data for period 1.01.2019 – 31.12.2019 published in annual 2019 report impact of accounting principles change restated data for period 1.01.2019 – 31.12.2019, presented in hereby report
Inflows: 141 768 540 0 141 768 540
Proceeds from sale of property, plant and equipment and intangible assets 22 808 0 22 808
Proceeds from sale of shares in related entities 0 0 0
Proceeds from sale of investment financial assets 141 742 513 0 141 742 513
Other 3 219 0 3 219
Outflows: (142 681 128) 0 (142 681 128)
Acquisition of property, plant and equipment and intangible assets (196 534) 0 (196 534)
Purchase of Euro Bank shares less cash acquired (1 591 434) 0 (1 591 434)
Acquisition of investment financial assets (140 893 160) 0 (140 893 160)
Other 0 0 0
Net cash flows from investing activities (912 588) 0 (912 588)

C. Cash flows from financing activities

Amount ‘000 PLN data for period 1.01.2019 – 31.12.2019 published in annual 2019 report impact of accounting principles change restated data for period 1.01.2019 – 31.12.2019, presented in hereby report
Inflows from financing activities: 865 000 0 865 000
Long-term bank loans 35 000 0 35 000
Issue of debt securities 0 0 0
Increase in subordinated debt 830 000 0 830 000
Net proceeds from issues of shares and additional capital paid-in 0 0 0
Other inflows from financing activities 0 0 0
Outflows from financing activities: (149 637) 0 (149 637)
Repayment of long-term bank loans (88 467) 0 (88 467)
Redemption of debt securities 0 0 0
Decrease in subordinated debt 0 0 0
Issue of shares expenses 0 0 0
Redemption of shares 0 0 0
Dividends paid and other payments to owners 0 0 0
Other outflows from financing activities (61 170) 0 (61 170)
Net cash flows from financing activities 715 363 0 715 363
 
D. Net cash flows. Total (a + b + c) (767 899) 0 (767 899)
– including change resulting from FX differences 152 0 152
E. Cash and cash equivalents at the beginning of the reporting period 4 520 688 0 4 520 688
F. Cash and cash equivalents at the end of the reporting period (D + E) 3 752 789 0 3 752 789

Search results