55. Offsetting financial assets and financial liabilities

The Group enters into offsetting arrangements, i.e. ISDA agreements (International Swaps and Derivatives Association Master Agreements) and GMRA agreements (Global Master Repurchase Agreements), which make it possible to offset financial assets and liabilities (close out netting) in the event of an infringement with respect to one of the parties of the agreement. These agreements are of particular importance to mitigate the risk posed by derivative instruments, because they enable offsetting both matured liabilities (mitigating the settlement risk) and non-matured liabilities of the parties (mitigating the pre-settlement risk). However, these agreements do not meet the requirements set out in IAS 32, because the right to offset is conditional on the occurrence of a specific future event (instances of infringement).

The Group offsets financial assets and liabilities arising from the valuation of opposite fx forwards concluded with customers in order to partially or fully close out the position for a given customer.

Exposures arising from derivatives are further secured by margin deposits provided by counterparties as part of executing CSA (Credit Support Annex).

OFFSETTING ASSETS Total financial assets Derivatives Reverse repo transactions
31.12.2023
Recognized financial assets, gross 9,959 9,587 372
Financial liabilities subject to offsetting, gross (7) (7) –
Financial assets recognized in the statement of financial position, net 9,952 9,580 372
Amounts subject to enforceable framework agreement or similar agreement concerning offsetting, including related to: 911 911 –
(i) recognized financial instruments which do not meet the offsetting criteria 467 467 –
(ii) financial collateral (including cash) 444 444 –
Net amount 9,041 8,669 372
OFFSETTING LIABILITIES Total financial liabilities Derivatives Repo transactions
31.12.2023
Recognized financial liabilities, gross 12,290 12,290 –
Financial liabilities subject to offsetting, gross (7) (7) –
Financial assets recognized in the statement of financial position, net 12,283 12,283 –
Amounts subject to enforceable framework agreement or similar agreement concerning offsetting, including related to: 2,318 2,318 –
(i) recognized financial instruments which do not meet the offsetting criteria 467 467 –
(ii) financial collateral (including cash) 1,851 1,851 –
Net amount 9,965 9,965 –
OFFSETTING ASSETS Total financial assets Derivatives Reverse repo transactions
31.12.2022
Recognized financial assets, gross 14,215 14,208 7
Financial liabilities subject to offsetting, gross (4) (4) –
Financial assets recognized in the statement of financial position, net 14,211 14,204 7
Amounts subject to enforceable framework agreement or similar agreement concerning offsetting, including related to: 1,628 1,628 –
(i) recognized financial instruments which do not meet the offsetting criteria 912 912 –
(ii) financial collateral (including cash) 716 716 –
Net amount 12,583 12,576 7
OFFSETTING LIABILITIES Total financial liabilities Derivatives Repo transactions
31.12.2022
Recognized financial liabilities, gross 20,451 20,451 –
Financial liabilities subject to offsetting, gross (4) (4) –
Financial assets recognized in the statement of financial position, net 20,447 20,447 –
Amounts subject to enforceable framework agreement or similar agreement concerning offsetting, including related to: 2,978 2,978 –
(i) recognized financial instruments which do not meet the offsetting criteria 912 912 –
(ii) financial collateral (including cash) 2,066 2,066 –
Net amount 17,469 17,469 –