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- Financial notes
- 46. Contingent liabilities and off-balance sheet liabilities received and granted
46. Contingent liabilities and off-balance sheet liabilities received and granted
Accounting policies
For the principles of recognising provisions for off-balance sheet commitments granted, see the note „Provisions„.
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 2023 and 31 December 2022, no underwriting agreements have been entered into.
Contractual commitments
| VALUE OF CONTRACTUAL COMMITMENTS CONCERNING | 31.12.2023 | 31.12.2022 |
|---|---|---|
| intangible assets | 85 | 81 |
| property, plant and equipment | 98 | 141 |
| Total | 183 | 222 |
Financial and guarantee commitments granted
| FINANCIAL AND GUARANTEE COMMITMENTS GRANTED 31.12.2023 | Total | Provisions per IFRS 9 | Net carrying amount |
|---|---|---|---|
| Credit lines and limits | 79,038 | (641) | 78,397 |
| real estate | 6,898 | (20) | 6,878 |
| business | 56,333 | (498) | 55,835 |
| consumer | 10,780 | (123) | 10,657 |
| in respect of factoring | 4,289 | – | 4,289 |
| in respect of finance leases | 738 | – | 738 |
| Other | 3,884 | – | 3,884 |
| Total financial commitments granted, including: | 82,922 | (641) | 82,281 |
| irrevocable commitments granted | 29,830 | (392) | 29,438 |
| POCI | 2 | – | 2 |
| Guarantees and sureties granted | |||
| guarantees in domestic and foreign trading | 10,615 | (107) | 10,508 |
| to financial entities | 2,679 | – | 2,679 |
| to non-financial entities | 7,807 | (107) | 7,700 |
| to public entities | 129 | – | 129 |
| domestic municipal bonds (state budget entities) | 243 | – | 243 |
| letters of credit | 1,277 | (3) | 1,274 |
| to financial entities | 30 | – | 30 |
| to non-financial entities | 1,247 | (3) | 1,244 |
| payment guarantees to financial entities | 101 | – | 101 |
| Total guarantees and sureties granted, including: | 12,236 | (110) | 12,126 |
| irrevocable commitments granted | 5,503 | (94) | 5,409 |
| performance guarantee | 3,592 | (57) | 3,535 |
| POCI | 452 | (2) | 450 |
| Total financial and guarantee commitments granted | 95,158 | (751) | 94,407 |
| FINANCIAL AND GUARANTEE COMMITMENTS GRANTED 31.12.2022 | Total | Provisions per IFRS 9 | Net carrying amount |
|---|---|---|---|
| Credit lines and limits | 70,380 | (590) | 69,790 |
| real estate | 3,683 | (21) | 3,662 |
| business | 52,455 | (414) | 52,041 |
| consumer | 10,650 | (155) | 10,495 |
| in respect of factoring | 2,749 | – | 2,749 |
| in respect of finance leases | 843 | – | 843 |
| Other | 2,825 | – | 2,825 |
| Total financial commitments granted, including: | 73,205 | (590) | 72,615 |
| irrevocable commitments granted | 30,579 | (301) | 30,278 |
| POCI | 5 | (1) | 4 |
| Guarantees and sureties granted | |||
| guarantees in domestic and foreign trading | 10,578 | (236) | 10,342 |
| to financial entities | 2,735 | – | 2,735 |
| to non-financial entities | 7,772 | (236) | 7,536 |
| to public entities | 71 | – | 71 |
| domestic municipal bonds (state budget entities) | 315 | – | 315 |
| Letters of credit | 1,514 | (7) | 1,507 |
| to non-financial entities | 1,514 | (7) | 1,507 |
| payment guarantees to financial entities | 71 | – | 71 |
| Total guarantees and sureties granted, including: | 12,478 | (243) | 12,235 |
| irrevocable commitments granted | 4,812 | (234) | 4,578 |
| performance guarantee | 3,640 | (203) | 3,437 |
| POCI | 284 | (5) | 279 |
| Total financial and guarantee commitments granted | 85,683 | (833) | 84,850 |
For more information on credit risk exposures, see note “Credit risk – financial information”.
Nominal value of commitments granted by maturity
| COMMITMENTS GRANTED BY MATURITY AS AT 31.12.2023 | up to 1 month (inclusive) | 1 to 3 months (inclusive) | 3 months to 1 year (inclusive) | 1 year to 5 years inclusive | more than 5 years | Total |
|---|---|---|---|---|---|---|
| commitments granted – financial | 17,208 | 4,606 | 32,016 | 17,464 | 11,628 | 82,922 |
| commitments granted – guarantees and sureties | 930 | 1,404 | 3,600 | 4,495 | 1,807 | 12,236 |
| Total | 18,138 | 6,010 | 35,616 | 21,959 | 13,435 | 95,158 |
| COMMITMENTS GRANTED BY MATURITY AS AT 31.12.2022 | up to 1 month (inclusive) | 1 to 3 months (inclusive) | 3 months to 1 year (inclusive) | 1 year to 5 years inclusive | more than 5 years | Total |
|---|---|---|---|---|---|---|
| commitments granted – financial | 14,588 | 5,101 | 26,792 | 18,860 | 7,864 | 73,205 |
| commitments granted – guarantees and sureties | 519 | 937 | 4,098 | 4,632 | 2,292 | 12,478 |
| Total | 15,107 | 6,038 | 30,890 | 23,492 | 10,156 | 85,683 |
Off-balance sheet liabilities received
| OFF-BALANCE SHEET LIABILITIES RECEIVED BY NOMINAL VALUE | 31.12.2023 | 31.12.2022 |
|---|---|---|
| Financial | 132 | 110 |
| Guarantees | 19,361 | 9,516 |
| Total | 19,493 | 9,626 |
The increase in off-balance sheet guarantee liabilities received is due, among other things, to the guarantee agreement entered into by the Group on 27 February 2023, providing unfunded credit protection in respect of a portfolio of selected corporate credit receivables of the Bank, in accordance with the CRR. The total value of the Bank’s debt portfolio covered by this guarantee is over PLN 12,292 million, and the portfolio consists of the bond portfolio of PLN 1,515 million (“Portfolio A”) and the portfolio of other receivables of PLN 10,777 million (“Portfolio B”). The coverage ratio is 100% for Portfolio A and 80% for Portfolio B, therefore the total Guarantee amount is PLN 10,137 million. The maximum time of coverage under the Guarantee is 60 months, however the Group is entitled to terminate the Guarantee prior to the expiry of this period.