47. Contingent liabilities and off-balance sheet liabilities received and granted
PKO Annual
Report Online
2020
Report Online
2020
Accounting policies
Upon initial recognition financial guarantee agreements are stated at fair value. In subsequent periods, as at the balance sheet date, financial guarantees are measured at the higher of:
- allowances for expected credit losses; or
- the amount of commission recognized initially, less accumulated amortization in accordance with IFRS 15.
Financial information
Securities programmes covered with underwriting agreements (maximum Group’s commitment to take up securities)
As at 31 December 2020 no agreements covered with underwriting have been concluded.
| Issuer of underwritten securities As at 31.12.2019 |
Type of underwritten securities | Maximum commitment to take up securities | Contract expiry date |
| Company C | Corporate bonds | 36 | 31.12.2022 |
All contracts relate to the Agreement for Organization, Conducting and Servicing of the Bond Issuance Programme. All securities of the Group under the underwriting programme have unlimited transferability, are not listed on the stock exchange and are not traded on a regulated OTC market.
Contractual commitments
| VALUE OF CONTRACTUAL COMMITMENTS CONCERNING | 31.12.2020 | 31.12.2019 |
| intangible assets | 27 | 28 |
| property, plant and equipment | 76 | 29 |
| Total | 103 | 57 |
Financial and guarantee commitments granted
| FINANCIAL AND GUARANTEE COMMITMENTS GRANTED 31.12.2020 | STAGE 1 | STAGE 2 | STAGE 3 | Total | Provisions per IFRS 9 | Net amount | |||
| Nominal value | Provision | Nominal value | Provision | Nominal value | Provision | ||||
| Credit lines and limits | 52 047 | (83) | 6 811 | (228) | 119 | (29) | 58 977 | (340) | 58 637 |
| housing | 4 280 | (9) | 148 | (5) | 3 | (1) | 4 431 | (15) | 4 416 |
| corporate | 36 923 | (58) | 5 031 | (186) | 106 | (25) | 42 060 | (269) | 41 791 |
| consumer | 8 897 | (16) | 1 415 | (37) | 10 | (3) | 10 322 | (56) | 10 266 |
| factoring | 1 798 | – | 217 | – | – | – | 2 015 | – | 2 015 |
| finance lease | 149 | – | – | – | – | – | 149 | – | 149 |
| Other | 3 001 | (29) | – | – | – | – | 3 001 | (29) | 2 972 |
| Total financial commitments granted, including: | 55 048 | (112) | 6 811 | (228) | 119 | (29) | 61 978 | (369) | 61 609 |
| irrevocable commitments granted | 21 966 | (46) | 2 883 | (94) | 42 | (10) | 24 891 | (150) | 24 741 |
| POCI | – | – | – | – | 20 | – | 20 | – | 20 |
| guarantees in domestic and foreign trading | 6 304 | (4) | 1 635 | (88) | 336 | (162) | 8 275 | (254) | 8 021 |
| to financial entities | 960 | – | – | – | – | – | 960 | – | 960 |
| to non-financial entities | 5 296 | (4) | 1 635 | (88) | 336 | (162) | 7 267 | (254) | 7 013 |
| to public entities | 48 | – | – | – | – | – | 48 | – | 48 |
| domestic municipal bonds (state budget entities) | 166 | – | – | – | – | – | 166 | – | 166 |
| letters of credit | 1 422 | (1) | 77 | (4) | 13 | (1) | 1 512 | (6) | 1 506 |
| to financial entities | 196 | – | – | – | – | – | 196 | – | 196 |
| to non-financial entities | 1 226 | (1) | 77 | (4) | 13 | (1) | 1 316 | (6) | 1 310 |
| payment guarantees to financial entities | 40 | – | – | – | – | – | 40 | – | 40 |
| Total guarantees and pledges granted, including: | 7 932 | (5) | 1 712 | (92) | 349 | (163) | 9 993 | (260) | 9 733 |
| irrevocable commitments granted | 4 320 | (4) | 1 635 | (88) | 336 | (162) | 6 291 | (254) | 6 037 |
| performance guarantee | 1 681 | (1) | 998 | (54) | 182 | (135) | 2 861 | (190) | 2 671 |
| POCI | – | – | – | – | 1 | – | 1 | – | 1 |
| Total financial and guarantee commitments granted | 62 980 | (117) | 8 523 | (320) | 468 | (192) | 71 971 | (629) | 71 342 |
| FINANCIAL AND GUARANTEE COMMITMENTS GRANTED 31.12.2019 | STAGE 1 | STAGE 2 | STAGE 3 | Total | Provisions per IFRS 9 | Net amount | |||
| Nominal value | Provision | Nominal value | Provision | Nominal value | Provision | ||||
| Credit lines and limits | 48 365 | (91) | 2 812 | (77) | 183 | (28) | 51 360 | (196) | 51 164 |
|
housing |
5 244 | (16) | 309 | (12) | 7 | (2) | 5 560 | (30) | 5 530 |
|
corporate |
32 873 | (61) | 1 155 | (35) | 168 | (23) | 34 196 | (119) | 34 077 |
|
consumer |
8 410 | (14) | 1 348 | (30) | 8 | (3) | 9 766 | (47) | 9 719 |
|
factoring |
1 551 | – | – | – | – | – | 1 551 | – | 1 551 |
|
finance lease |
287 | – | – | – | – | – | 287 | – | 287 |
| Other | 4 005 | (13) | 3 | – | – | – | 4 008 | (13) | 3 995 |
| Total financial commitments granted, including: | 52 370 | (104) | 2 815 | (77) | 183 | (28) | 55 368 | (209) | 55 159 |
|
irrevocable commitments grante |
20 684 | (29) | 1 974 | (47) | 98 | (11) | 22 756 | (87) | 22 669 |
|
POCI |
– | – | – | – | 67 | – | 67 | – | 67 |
| guarantees in domestic and foreign trading | 9 345 | (6) | 501 | (11) | 291 | (40) | 10 137 | (57) | 10 080 |
|
to financial entities |
595 | – | – | – | – | – | 595 | – | 595 |
|
to non-financial entities |
8 591 | (6) | 501 | (11) | 291 | (40) | 9 383 | (57) | 9 326 |
|
to public entities |
159 | – | – | – | – | – | 159 | – | 159 |
| domestic corporate bonds | 36 | – | – | – | – | – | 36 | – | 36 |
|
to non-financial entities |
36 | – | – | – | – | – | 36 | – | 36 |
| domestic municipal bonds (state budget entities) | 101 | – | – | – | – | – | 101 | – | 101 |
| letters of credit | 1 188 | (1) | – | – | 13 | (2) | 1 201 | (3) | 1 198 |
|
to non-financial entities |
1 188 | (1) | – | – | 13 | (2) | 1 201 | (3) | 1 198 |
| payment guarantees to financial entities | 35 | – | – | – | – | – | 35 | – | 35 |
| Total guarantees and pledges granted, including: | 10 705 | (7) | 501 | (11) | 304 | (42) | 11 510 | (60) | 11 450 |
| irrevocable commitments granted | 7 355 | (5) | 501 | (11) | 291 | (40) | 8 147 | (56) | 8 091 |
| performance guarantee | 2 021 | (1) | 390 | (1) | 149 | (12) | 2 560 | (14) | 2 546 |
| Total financial and guarantee commitments granted | 63 075 | (111) | 3 316 | (88) | 487 | (70) | 66 878 | (269) | 66 609 |
nominal value of commitments granted by maturity
| COMMITMENTS GRANTED BY MATURITY AS AT 31.12.2020 | up to 1 month (inclusive) | from 1 to 3 months (inclusive) | from 3 months to 1 year (inclusive) | from 1 to 5 years (inclusive) | over 5 years | Total |
| financial commitments granted | 10 935 | 5 413 | 19 154 | 18 197 | 8 279 | 61 978 |
| guarantees and pledges granted, | 499 | 1 144 | 3 829 | 2 422 | 2 099 | 9 993 |
| Total | 11 434 | 6 557 | 22 983 | 20 619 | 10 378 | 71 971 |
| COMMITMENTS GRANTED BY MATURITY AS AT 31.12.2019 | up to 1 month (inclusive) | from 1 to 3 months (inclusive) | from 3 months to 1 year (inclusive) | from 1 to 5 years (inclusive) | over 5 years | Total |
| financial commitments granted | 15 936 | 3 567 | 15 086 | 12 000 | 8 779 | 55 368 |
| guarantees and pledges granted, | 161 | 1 653 | 5 185 | 3 176 | 1 335 | 11 510 |
| Total | 16 097 | 5 220 | 20 271 | 15 176 | 10 114 | 66 878 |
Off-balance sheet liabilities received
| OFF-BALANCE SHEET LIABILITIES RECEIVED BY NOMINAL VALUE | 31.12.2020 | 31.12.2019 |
| Financial | 147 | 119 |
| Guarantees | 4 312 | 2 478 |
| Total | 4 459 | 2 597 |
Right to sell or pledge a collateral established for the Group
As at 31 December 2020, and as at 31 December 2019 there were no collaterals established for the benefit of the Bank’s Group, which the Group was entitled to sell or pledge, if all obligations of the collateral holder were performed.