Cash and cash equivalents
Cash and cash equivalents consist of cash in hand, cash on nostro accounts and a deposit with 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 | 31.12.2017 | 31.12.2016 |
|---|---|---|
| Cash and balances with the Central Bank | 15 845 | 11 645 |
| Deposits with the Central Bank | 1 965 | 1 680 |
| Amounts due from banks (current) | 5 036 | 4 471 |
| Restricted cash | 154 | 170 |
| Total | 23 000 | 17 966 |
Restricted cash and cash equivalents
Cash and cash equivalents of PLN 154 million (as at 31 December 2016: PLN 170 million), including:
- PLN 11 million (as at 31 December 2016: PLN 13 million) pledged as collateral for securities’ transactions conducted by the Dom Maklerski PKO BP SA brokerage house 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 a 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 the transactions made by each participant and is updated by KDPW_CCP on a daily basis;
- PLN 9 million (as at 31 December 2016: PLN 18 million) paid in by participants in IKE, IKZE, PPE and PSO, which was not converted by the transfer agent into investment fund participation units by 31 December 2017 and 31 December 2016, respectively;
- PLN 134 million (as at 31 December 2016: PLN 139 million) pledged as a collateral for securitization transactions.
Cash flows from interests and dividends, both received and paid
| INTEREST INCOME – RECEIVED ON: | 2017 | 2016 |
|---|---|---|
| loans to and other receivables from banks | 168 | 108 |
| loans and advances to customers | 8 193 | 7 492 |
| investment securities | 1 087 | 777 |
| hedging derivatives | 391 | 462 |
| financial assets designated at fair value through profit or loss upon initial recognition | 189 | 227 |
| financial assets held for trading, excluding derivative financial instruments | 42 | 68 |
| Total | 10 070 | 9 134 |
| INTEREST EXPENSE – PAID ON: | 2017 | 2016 |
|---|---|---|
| amounts due to banks | (189) | (109) |
| amounts due to customers | (1 628) | (1 892) |
| debt securities in issue and subordinated liabilities | (422) | (384) |
| available-for-sale debt securities | (72) | (32) |
| financial assets held for trading, excluding derivative financial instruments | (8) | (33) |
| financial assets designated at fair value through profit or loss upon initial recognition | (11) | (22) |
| Total | (2 330) | (2 472) |
| DIVIDEND INCOME – RECEIVED | 2017 | 2016 |
|---|---|---|
| Dividend received from joint ventures and associates1 | 12 | 11 |
| Dividend received from other entities | 12 | 10 |
| Total | 24 | 21 |
1 The item relates to a dividend received from entities accounted for under the equity method.
Cash flow from operating activities – other adjustments
| OTHER ADJUSTMENTS | 2017 | 2016 |
|---|---|---|
| Changes resulting from acquisition of entities and exclusion of net assets of controlled companies | (30) | (127) |
| Accrued interest, discount, premium on debt securities and subordinated liabilities | (126) | (537) |
| Hedge accounting | (7) | (51) |
| Actuarial gains and losses | 1 | 2 |
| valuation of shares in associates and joint ventures, and other changes | 39 | (54) |
| Foreign exchange differences on translation of foreign branches | (36) | (5) |
| Scrapping of and impairment allowances on property, plant and equipmentand intangible assets | (20) | (65) |
| Total | (179) | (837) |
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
| (GAIN)/LOSS ON INVESTING ACTIVITIES RELATING TO SALE OR SCRAPPING OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS, SHARES AND PARTICIPATION UNITS | 2017 | 2016 |
|---|---|---|
| Proceeds from sale or scrapping of property, plant and equipment and intangible assets | (95) | (86) |
| Costs of sale or scrapping of property, plant and equipment and intangible assets | 21 | 33 |
| Gain on sale of subsidiaries | - | (133) |
| Gain on sale of shares and participation units | (43) | - |
| Total | (117) | (186) |
| INTEREST AND DIVIDENDS | 2017 | 2016 |
|---|---|---|
| Interest received on investment securities, presented under investing activities | (935) | (688) |
| Dividends received presented in investing activities | (24) | (21) |
| Interest paid on loans received and debt securities in issue, presented under financing activities | 494 | 473 |
| Total | (465) | (236) |
| CHANGES IN AMOUNTS DUE FROM BANKS | 2017 | 2016 |
|---|---|---|
| Change in the balance sheet | 112 | (792) |
| Changes resulting from acquisition of entities and exclusion of net assets of controlled companies | 37 | - |
| Exclusion of the change in cash and cash equivalents | 551 | 1 117 |
| Total | 700 | 325 |
| CHANGE IN LOANS AND ADVANCES TO CUSTOMERS | 2017 | 2016 |
|---|---|---|
| Change in the balance sheet | (5 022) | (10 192) |
| Changes resulting from acquisition of entities and exclusion of net assets of controlled companies | - | 6 083 |
| Change in write-downs of loans and advances to customers | 180 | 284 |
| Exclusion of the change in cash and cash equivalents | (2) | 3 |
| Total | (4 844) | (3 822) |
| CHANGE IN OTHER ASSETS, INVENTORIES AND NON-CURRENT ASSETS HELD FOR SALE | 2017 | 2016 |
|---|---|---|
| Change in the balance sheet sheet and reclassification to other items | 59 | (1 430) |
| Changes resulting from acquisition of entities and exclusion of net assets of controlled companies | - | 137 |
| Wyłączenie aktywów netto spółek objętych kontrolą | - | - |
| Movements in impairment allowances for other receivables | (14) | (18) |
| Total | 45 | (1 311) |
| CHANGE IN AMOUNTS DUE TO BANKS | 2017 | 2016 |
|---|---|---|
| Change in the balance sheet | (14 648) | 920 |
| Changes resulting from acquisition of entities and exclusion of net assets of controlled companies | - | (4 006) |
| Presentation of long-term loans from banks under financing activities | 13 446 | 44 |
| Total | (1 202) | (3 042) |
| CHANGE IN AMOUNTS DUE TO CUSTOMERS | 2017 | 2016 |
|---|---|---|
| Change in the balance sheet | 13 734 | 9 308 |
| Changes resulting from acquisition of entities and exclusion of net assets of controlled companies | - | (697) |
| Presentation of long-term loans from financial institutions other than banks under financing activities | 1 603 | (19) |
| Total | 15 337 | 8 592 |
| Change in liabilities in respect of debt securities in issue | 2017 | 2016 |
|---|---|---|
| Change in the balance sheet | 9 439 | 5 060 |
| Changes resulting from acquisition of entities and exclusion of net assets of controlled companies | - | (1 557) |
| Presentation of long-term liabilities in respect of debt securities in issue under financing activities | (10 558) | (3 060) |
| Total | (1 119) | 443 |
| CHANGE IN PROVISIONS AND IMPAIRMENT ALLOWANCES | 2017 | 2016 |
|---|---|---|
| Change in the balance sheet | (14) | (24) |
| Changes resulting from acquisition of entities and exclusion of net assets of controlled companies | - | (1) |
| Change in impairment allowances on loans and advances to customers | (180) | (284) |
| Change in impairment allowances on shares in associated and joint ventures, investment securities and other receivables | 22 | 18 |
| Total | (172) | (291) |
| CHANGE IN OTHER LIABILITIES, LIABILITIES IN RESPECT OF INSURANCE ACTIVITIES | 2017 | 2016 |
|---|---|---|
| Change in the balance sheet | 1 130 | 1 214 |
| Changes resulting from acquisition of entities and exclusio of net assets of controlled companies | (6) | (113) |
| Total | 1 124 | 1 101 |
Reconciliation of items presented in the consolidated statement of financial position with financing activities in the consolidated cash flow statement
| Note | 31.12.2016 | Recognized under financing activities in the consolidated cash flow statement | Recognized under operating activities in the consolidated cash flow statement | 31.12.2017 | ||
| Incurred | Repaid | Other changes, including foreign exchange differences | ||||
| Loans and borrowings received | 22 229 | 311 | (15 360) | (832) | 6 348 | |
| from banks | 32 | 17 567 | - | (13 446) | (1 336) | 2 785 |
| from customers | 33 | 4 662 | 311 | (1 914) | 504 | 3 563 |
| Debt securities in issue | 35 | 14 493 | 17 836 | (7 278) | (1 119) | 23 932 |
| Subordinated liabilities | 36 | 2 539 | 1 700 | (2 536) | - | 1 720 |
| subordinated loan | 922 | - | (880) | (42) | - | |
| subordinated bonds | 1 617 | 1 700 | (1 656) | 59 | 1 720 | |
| Total | 39 261 | 19 847 | (25 174) | (1 951) | 32 000 | |
| Note | 31.12.2015 | Changes resulting from acquisition of business entities | Recognized under financing activities in the consolidated cash flow statement | Recognized under financing activities in the consolidated cash flow statement | 31.12.2016 | ||
| Incurred | Repaid | Other changes, including foreign exchange differences | |||||
| Loans and borrowings received | 20 342 | - | 460 | (485) | 1 912 | 22 229 | |
| from banks | 32 | 16 418 | - | - | (44) | 1 193 | 17 567 |
| from customers | 33 | 3 924 | - | 460 | (441) | 719 | 4 662 |
| Debt securities issued | 35 | 9 432 | 1 558 | 7 807 | (4 747) | 443 | 14 493 |
| Subordinated liabilities | 36 | 2 499 | - | - | - | 40 | 2 539 |
| subordinated loan | 882 | - | - | - | 40 | 922 | |
| subordinated bonds | 1 617 | - | - | - | - | 1 617 | |
| Total | 32 273 | 1 558 | 8 267 | (5 232) | 2 395 | 39 261 | |