49. Notes to the consolidated cash flow statement
PKO Annual
Report Online
2020
Report Online
2020
Cash and cash equivalents
Cash and cash equivalents consist of cash in hand, cash on nostro accounts in the National Bank of Poland, as well as current amounts due from banks, as well as other cash equivalents with maturities up to 3 months from the date of acquisition.
| CASH AND CASH EQUIVALENTS | 2020 | 2019 |
| 7 474 | 14 677 | |
| Cash, current account with the Central Bank | 2 083 | 3 768 |
| Deposits with the Central Bank | 144 | 236 |
| Current amounts due from banks | 115 | 224 |
| Restricted cash and cash equivalents of which | 29 | 12 |
| Total | 9 701 | 18 681 |
Restricted cash and cash equivalents
Cash and cash equivalents of PLN 144 million (as at 31 December 2019: PLN 236 million), including:
- PLN 29 million (as at 31 December 2019: PLN 12 million) pledged as collateral for securities’ transactions conducted by Biuro Maklerskie PKO BP are deposited in the National Depository for Securities (KDPW_CCP), as part of the Guarantee Fund for the Settlement of Stock Exchange Transactions. Each direct participant who holds the status of settlement-making participant is obliged to make payments to the settlement fund which guarantees proper settlement of the stock exchange transactions covered by that fund. The amount of the payments depends on the value of transactions made by each participant and is updated by KDPW_CCP on a daily basis.
- PLN 10 million (as at 31 December 2019: PLN 4 million) paid in by participants in IKE, IKZE, PPE and PSO, which had not been converted by the transfer agent into investment fund participation units by 31 December 2020 and 31 December 2019, respectively.
- PLN 105 million (as at 31 December 2019: PLN 220 million) pledged as collateral for securitization transactions.
Cash flows from interest and dividends, both received and paid
| INTEREST INCOME ON: | 2020 | 2019 |
| loans to and other receivables from banks | 73 | 105 |
| hedging derivatives | 528 | 418 |
| debt securities | 1 884 | 1 506 |
| loans and advances to customers | 7 486 | 9 538 |
| Total | 9 971 | 11 567 |
The above amounts of interest received do not include the amounts of commission recognized using the effective interest rate as interest income.
| INTEREST EXPENSES – PAID: | 2020 | 2019 |
| amounts due to banks | (19) | (58) |
| amounts due to customers | (1 003) | (1 709) |
| loans and advances received | (32) | (44) |
| leases | (20) | (26) |
| debt securities: | (38) | (91) |
| debt securities in issue | (480) | (521) |
| subordinated liabilities | (90) | (90) |
| Total | (1 682) | (2 539) |
| DIVIDEND INCOME – RECEIVED | 2020 | 2019 |
| from associates and joint ventures | 17 | 36 |
| from financial assets held for trading | – | 1 |
| financial instruments not held for trading, measured at fair value through profit or loss | 15 | 13 |
| Total | 32 | 50 |
Cash flows from operating activities – other adjustments
| OTHER ADJUSTMENTS | 2020 | 2019 |
| Changes resulting from acquisition of business entities | – | (30) |
| Cash flow hedges | 174 | 210 |
| Actuarial gains and losses | (6) | (7) |
| Foreign exchange differences on translation of foreign branches | (68) | 50 |
| Remeasurement of shares in subordinated entities and other changes | 11 | (123) |
| Scrapping of property, plant and equipment and intangible assets | (122) | 48 |
| Total | (11) | 148 |
Explanation of differences between the consolidated statement of financial position and changes in these items presented under operating activities in the consolidated cash flow statement
| (GAINS)/LOSSES ON INVESTING ACTIVITIES | 2020 | 2019 |
| Gains on sale and scrapping of property, plant and equipment, intangible assets and assets held for sale | (49) | (45) |
| Losses on sale and scrapping of property, plant and equipment, intangible assets and assets held for sale | 45 | 34 |
| Total | (4) | (11) |
| INTEREST AND DIVIDENDS | 2020 | 2019 |
| Shown in investing activities: | (1 880) | (1 505) |
|
dividends received from associates and joint ventures |
(17) | (36) |
|
dividends received from securities held for trading |
– | (1) |
|
dividends received from securities not held for trading, measured at fair value through profit or loss |
(15) | (13) |
|
interest received on securities measured at fair value through other comprehensive income |
(1 367) | (1 200) |
|
interest received on securities measured at amortized cost |
(481) | (255) |
| Shown in financing activities: | 602 | 642 |
|
interest paid on debt securities in issue |
480 | 521 |
|
interest paid on subordinated liabilities |
90 | 90 |
|
interest paid on loans and advances received |
32 | 31 |
| Total | (1 278) | (863) |
| CHANGES IN AMOUNTS DUE FROM BANKS | 2020 | 2019 |
| Change in the balance sheet | 1 535 | 3 569 |
| Changes in allowances for expected credit losses | 1 | – |
| Exclusion of the change in cash and cash equivalents | (1 794) | (3 599) |
| Total | (258) | (30) |
| CHANGE IN SECURITIES | 2020 | 2019 |
| Change in the balance sheet | (43 109) | (16 459) |
| Changes in allowances for expected credit losses | (25) | 11 |
| Fair value of financial assets measured at fair value through other comprehensive income (net) | 1 020 | (36) |
| Recognition of acquisition / disposal of securities measured at fair value through other comprehensive income in investing activities | 7 136 | 9 829 |
| Recognition of acquisition / disposal of securities measured at amortized cost in investing activities | 33 326 | 4 627 |
| Total | (1 652) | (2 028) |
| CHANGE IN LOANS AND ADVANCES TO CUSTOMERS | 2020 | 2019 |
| Change in the balance sheet | 7 603 | (15 345) |
| Changes resulting from the acquisition of business entities | – | 1 077 |
| Changes in allowances for expected credit losses | (1 602) | 982 |
| Exclusion of the change in cash and cash equivalents | 17 | 2 |
| Total | 6 018 | (13 284) |
| CHANGE IN NON-CURRENT ASSETS HELD FOR SALE | 2020 | 2019 |
| Change in the balance sheet | (114) | 3 |
| Changes due to implementation of IFRS 16 | – | 1 |
| Changes in allowances on non-current assets held for sale | (2) | (1) |
| Total | (116) | 3 |
| CHANGE IN OTHER ASSETS | 2020 | 2019 |
| Change in the balance sheet | (90) | 69 |
| Changes resulting from the acquisition of business entities | – | 76 |
| Changes due to implementation of IFRS 16 | – | (4) |
| Changes in allowances for other assets and inventories | (146) | (12) |
| Total | (236) | 129 |
| CHANGE IN AMOUNTS DUE TO BANKS AND THE CENTRAL BANK | 2020 | 2019 |
| Change in the balance sheet | 491 | 384 |
| Changes resulting from the acquisition of business entities | – | (1 301) |
| Total | 491 | (917) |
| CHANGE IN AMOUNTS DUE TO CUSTOMERS | 2020 | 2019 |
| Change in the balance sheet | 26 186 | 17 447 |
| Total | 26 186 | 17 447 |
| CHANGE IN LIABILITIES IN RESPECT OF LOANS AND ADVANCES RECEIVED | 2020 | 2019 |
| Change in the balance sheet | (512) | (1 564) |
| Recognition of drawing/repayment of long-term loans and advances under financing activities, including interest | 915 | 2 679 |
| Total | 403 | 1 115 |
| CHANGE IN LIABILITIES IN RESPECT OF DEBT SECURITIES IN ISSUE | 2020 | 2019 |
| Change in the balance sheet | 950 | 2 521 |
| Changes resulting from the acquisition of business entities | – | (250) |
| Recognition of drawing/repayment of liabilities in respect of debt securities in issue under financing activities | 424 | (2 414) |
| Total | 1 374 | (143) |
| CHANGE IN SUBORDINATED LIABILITIES | 2020 | 2019 |
| Change in the balance sheet | (14) | (1) |
| Total | (14) | (1) |
| CHANGE IN ACCUMULATED ALLOWANCES FOR EXPECTED CREDIT LOSSES AND IMPAIRMENT ALLOWANCES ON NON-FINANCIAL AND OTHER ASSETS | 2020 | 2019 |
| Change in accumulated allowances and provisions for expected credit losses | 2 040 | (955) |
| for amounts due from banks | (1) | – |
| for loans and advances to customers | 1 602 | (982) |
| for securities | 25 | (11) |
| for other financial assets | 54 | (4) |
| provisions for financial liabilities and guarantees granted | 360 | 42 |
| Change in accumulated impairment allowances on non-financial assets and other provisions | 831 | 187 |
| for non-current assets held for sale | 2 | 1 |
| for property, plant and equipment | 43 | 10 |
| for intangible assets | 141 | 53 |
| for investments in subordinated entities | 92 | 5 |
| for other non-financial assets | 92 | 25 |
| other provisions | 461 | 93 |
| Total | 2 871 | (768) |
| CHANGE IN OTHER LIABILITIES | 2020 | 2019 |
| Change in the balance sheet | 11 | 1 212 |
| Changes due to implementation of IFRS 16 | – | (956) |
| Changes resulting from the acquisition of business entities | – | (90) |
| Recognition of lease payments in financing activities | 233 | 221 |
| Total | 244 | 387 |
Reconciliation of items presented in the consolidated statement of financial position with financing activities in the consolidated cash flow statement
| 2020 | As at the beginning of the period | Recognized in financing activities in the cash flow statement | Recognized in operating activities in the cash flow statement
|
As at the end of the period | ||
| Incurred | Repaid | |||||
| Loans and advances received | 2 779 | – | (915) | 403 | 2 267 | |
| from banks | 750 | – | (194) | 319 | 875 | |
| from customers | 2 029 | – | (721) | 84 | 1 392 | |
| Debt securities in issue | 31 148 | 6 838 | (7 262) | 1 374 | 32 098 | |
| Subordinated liabilities – subordinated bonds | 2 730 | – | – | (14) | 2 716 | |
| Payment of lease liabilities | 894 | – | (233) | 429 | 1 090 | |
| Total | 37 551 | 6 838 | (8 410) | 2 192 | 38 171 | |
| 2019 | As at the beginning of the period | Recognized in financing activities in the cash flow statement | Recognized in operating activities in the cash flow statement | As at the end of the period | |
| Incurred | Repaid | ||||
| Loans and advances received | 4 343 | 665 | (3 353) | 1 124 | 2 779 |
| from banks | 250 | 650 | (1 294) | 1 144 | 750 |
| from customers | 4 093 | 15 | (2 059) | (20) | 2 029 |
| Debt securities in issue | 28 627 | 13 079 | (10 665) | 107 | 31 148 |
| Subordinated liabilities – subordinated bonds | 2 731 | – | – | (1) | 2 730 |
| Payment of lease liabilities | 956 | – | (221) | 159 | 894 |
| Total | 36 657 | 13 744 | (14 239) | 1 389 | 37 551 |