| 31.12.2014 | 31.12.2013 | |
|---|---|---|
| Loans and advances to customers, gross, of which: | 187,519,861 | 156,274,042 |
| financial sector | 1,630,191 | 2,986,731 |
| corporate, of which: | 1,319,339 | 948,308 |
| deposits of the Brokerage House of PKO Bank Polski SA in the Stock Exchange Guarantee Fund and initial deposit | 11,440 | 19,339 |
| receivables due from repurchase agreements | 310,852 | 2,038,423 |
| non-financial sector | 175,789,529 | 146,067,840 |
| housing | 98,105,676 | 76,631,478 |
| corporate | 53,930,247 | 47,970,294 |
| consumer | 21,644,625 | 20,627,222 |
| debt securities (corporate) | 2,108,981 | 838,846 |
| public sector | 10,100,141 | 7,219,471 |
| corporate | 7,277,642 | 6,135,647 |
| debt securities (municipal) | 2,822,499 | 978,159 |
| receivables due from repurchase agreements* | - | 105,665 |
| Impairment allowances on loans and advances | (8,022,477) | (6,650,780) |
| Loans and advances to customers, net | 179,497,384 | 149,623,262 |
*As at 31 December 2013, as a part of issuance stabilisation actions for the selling shareholder the Brokerage House of PKO Bank Polski SA had the company’s shares valued using the purchase price, presented in position ‘Receivables due from repurchase agreements’ in the amount of PLN 105 665 thousand and cash in the amount of PLN 14 629 thousand, blocked on the stabilisation manager’s account and a liability in the same amount to the selling shareholder. Settlement of this transaction will take place according to the stabilisation agreement, under mutual offsetting assets and liabilities in the same amount after 30 days from the beginning of the stabilisation, or when the number of shares acquired from the market as a part of stabilising actions will equal the number of shares received from the selling shareholder. As at 31 December 2014 the Bank did not have shares, as a part of issuance stabilisation actions for the selling shareholder.
| By client segment | 31.12.2014 | 31.12.2013 |
|---|---|---|
| Loans and advances granted, gross, of which: | 187,519,861 | 156,274,042 |
| mortgage banking | 90,768,711 | 68,943,625 |
| corporate | 50,661,094 | 40,393,713 |
| retail and private banking | 21,644,625 | 20,627,222 |
| small and medium enterprises* | 24,123,139 | 24,146,055 |
| receivables due from repurchase agreements | 310,852 | 2,144,088 |
| other receivables | 11,440 | 19,339 |
| Impairment allowances on loans and advances | (8,022,477) | (6,650,780) |
| Loans and advances granted, net | 179,497,384 | 149,623,262 |
* Since 2014 the change in presentation involving the inclusion of housing market clients within the small and medium enterprises segment (data for 2013 has been brought to comparability).
The structure of loans and advances presented in the note includes the following segmentation:
- corporate loans of financial institutions (i.e. e.g. leasing companies, insurance companies, investment companies) include corporate banking,
- housing loans include loans of mortgage banking and housing market clients, corporate client segment and small and medium enterprises as regards to products intended for housing purposes,
- corporate loans of non-financial entities, depending on the size of the entity, include loans for small and medium enterprises, housing market loans and corporate loans granted to corporate entities for non-housing purposes,
- consumer loans include retail and private banking,
- corporate loans of State budget entities include corporate banking loans,
- reclassified debt securities are included in the corporate client segment.
Debt securities in the loans and advances to customers portfolio
| 31.12.2014 | 31.12.2013 | |
|---|---|---|
| Debt securities reclassified to the loans and advances to customers portfolio, gross | 1,494,983 | 1,756,938 |
| Debt securities directly classified to the loans and advances to customers portfolio, gross | 3,436,497 | 60,067 |
| Impairment allowances | (94,704) | (28,065) |
| Total debt securities, net | 4,836,776 | 1,788,940 |
Securities reclassification
In 2014 and 2013 there was no reclassification of securities to the loan and advances to customers’ portfolio. In 2012, due to change of intention as regards holding of the selected portfolio of non-Treasury securities classified upon initial recognition as available for sale the Group reclassified them to loans and advances to customers.
As a result of the reclassification of the portfolio, the portfolio valuation methods have changed, i.e. from measured at fair value to measured at amortised cost.
Debt securities reclassified from financial assets available for sale to loans and advances to customers as at the date of reclassification:
| Portfolio reclassified in the 3rd quarter of 2012 | nominal value | fair value | carrying amount |
|---|---|---|---|
| Municipal bonds | 778,233 | 807,275 | 807,275 |
| Corporate bonds | 632,160 | 632,013 | 632,013 |
| Total | 1,410,393 | 1,439,288 | 1,439,288 |
| Portfolio reclassified in the 4th quarter of 2012 | nominal value | fair value | carrying amount |
|---|---|---|---|
| Municipal bonds | 440,950 | 430,124 | 430,124 |
| Corporate bonds | 656,630 | 661,546 | 661,546 |
| Total | 1,097,580 | 1,091,670 | 1,091,670 |
Debt securities (municipal bonds and corporate bonds) reclassified from financial assets available for sale to loans and advances to customers as at:
| As at 31.12.2014 | nominal value | fair value | carrying amount |
|---|---|---|---|
| Municipal bonds | 850,183 | 847,435 | 853,129 |
| Corporate bonds | 631,640 | 640,689 | 568,483 |
| Total | 1,481,823 | 1,488,124 | 1,421,612 |
| As at 31.12.2013 | nominal value | fair value | carrying amount |
|---|---|---|---|
| Municipal bonds | 961,611 | 963,118 | 965,180 |
| Corporate bonds | 787,040 | 791,503 | 768,385 |
| Total | 1,748,651 | 1,754,621 | 1,733,565 |
Change in fair value which would have been recognised in the income statement and/or in other comprehensive income if there was no reclassification, would amount to PLN (5 720) thousand for the period from the date of reclassification until 31 December 2014
(31 December 2013 PLN (5 948) thousand). As at 31 December 2014, the average effective interest rate for the debt securities portfolio was 3.632% (4.139% as at 31 December 2013).
| Loans and advances to customers by method of calculating impairment allowances | 31.12.2014 | 31.12.2013 |
|---|---|---|
| Assessed on an individual basis | 7,377,955 | 7,336,985 |
| Impaired, of which: | 5,615,878 | 5,532,429 |
| finance lease receivables | 344,975 | 134,027 |
| Not impaired, of which: | 1,762,077 | 1,804,556 |
| finance lease receivables | 300,021 | 193,560 |
| Assessed on a portfolio basis | 7,361,432 | 7,328,923 |
| Impaired, of which: | 7,361,432 | 7,328,923 |
| finance lease receivables | 106,401 | 115,883 |
| Assessed on a group basis (IBNR), of which: | 172,780,474 | 141,608,134 |
| finance lease receivables | 4,477,927 | 3,793,700 |
| Loans and advances to customers, gross | 187,519,861 | 156,274,042 |
| Impairment allowances on exposures assessed on an individual basis | (2,963,733) | (2,292,218) |
| Impaired, of which: | (2,948,025) | (2,276,093) |
| impairment allowances on lease receivables | (95,057) | (46,430) |
| Impairment allowances on exposures assessed on a portfolio basis, of which: | (4,426,869) | (3,772,723) |
| impairment allowances on lease receivables | (75,273) | (75,355) |
| Impairment allowances on exposures assessed on a group basis (IBNR), of which: | (631,875) | (585,839) |
| impairment allowances on lease receivables | (14,478) | (10,898) |
| Impairment allowances - total | (8,022,477) | (6,650,780) |
| Loans and advances to customers, net | 179,497,384 | 149,623,262 |
A detailed description of changes in allowances has been presented in the note 11 ‘Net impairment allowance, write-downs and provisions’.
As at 31 December 2014, the share of impaired loans amounted to 6.9% (as at 31 December 2013: 8.2%), whereas the coverage ratio for impaired loans as at 31 December 2014 (calculated as total impairment allowances on loans and advances to customers divided by gross carrying amount of impaired loans) amounted to 61.8% (as at 31 December 2013: 51.7%).
As at 31 December 2014, the share of loans overdue by more than 90 days in the gross amount of loans and advances was 5.2%
(as at 31 December 2013: 5.9%).
As at 31 December 2014 and as at 31 December 2013 the Group did not have transferred financial assets, which are derecognised from the financial statements, for which the Group would continue involvement in those assets.
Finance lease agreements
Finance lease – lessor
The Group conducts lease activities through the entities from the PKO Leasing SA Group.
The value of gross investments in leases and the minimal lease payments resulting from finance lease agreements amounted to:
as at 31 December 2014
| Gross lease investment value and minimal lease payments | Gross lease investment | Present value of the minimal lease payments | Unrealised income |
|---|---|---|---|
| Gross lease receivables: | |||
| up to 1 year | 2,117,836 | 1,899,603 | 218,233 |
| from 1 year to 5 years | 3,153,066 | 2,862,421 | 290,645 |
| over 5 years | 527,165 | 467,300 | 59,865 |
| Gross total | 5,798,067 | 5,229,324 | 568,743 |
| Impairment allowances | (184,808) | (184,808) | - |
| Net total | 5,613,259 | 5,044,516 | 568,743 |
as at 31 December 2013
| Gross lease investment value and minimal lease payments | Gross lease investment | Present value of the minimal lease payments | Unrealised income |
|---|---|---|---|
| Gross lease receivables: | |||
| up to 1 year | 1,702,323 | 1,505,045 | 197,278 |
| from 1 year to 5 years | 2,526,276 | 2,241,693 | 284,583 |
| over 5 years | 572,804 | 490,432 | 82,372 |
| Gross total | 4,801,403 | 4,237,170 | 564,233 |
| Impairment allowances | (132,683) | (132,683) | - |
| Net total | 4,668,720 | 4,104,487 | 564,233 |
As at 31 December 2014 and 31 December 2013, there are no unguaranteed residual values attributable to the lessor.