31.12.2015 | 31.12.2014 | |
Debt securities available for sale, gross | 27 661 838 | 21 961 102 |
issued by the State Treasury | 18 358 006 | 12 781 051 |
Treasury bonds PLN | 17 920 035 | 12 601 236 |
Treasury bonds eur | 310 620 | - |
Treasury bonds USD | 77 375 | 149 582 |
Treasury bonds UAH | 49 976 | 30 233 |
issued by local government bodies, municipal bonds PLN | 4 613 726 | 4 480 325 |
issued by non-financial institutions | 3 171 012 | 3 475 594 |
corporate bonds PLN | 2 626 682 | 2 960 217 |
corporate bonds EUR | 320 712 | 315 965 |
corporate bonds USD | 223 618 | 199 412 |
issued by banks, corporate bonds | 1 519 094 | 1 224 132 |
corporate bonds PLN | 1 470 753 | 1 112 705 |
corporate bonds EUR | 44 569 | 90 867 |
corporate bonds UAH | 3 772 | 20 560 |
Impairment allowances on debt securities available for sale | (56 925) | - |
corporate bonds PLN | (22 959) | - |
corporate bonds USD | (30 194) | - |
corporate bonds UAH | (3 772) | - |
Total net debt securities available for sale | 27 604 913 | 21 961 102 |
Equity securities available for sale, gross | 567 346 | 243 475 |
Equity securities not admitted to public trading | 346 941 | 209 286 |
Equity securities admitted to public trading | 220 405 | 34 189 |
Shares in investment funds | (75 565) | (129 369) |
Impairment allowances on equity securities available for sale | 491 781 | 114 106 |
Total net equity securities available for sale | 212 821 | 204 017 |
Total net investment securities available for sale | 28 309 515 | 22 279 225 |
On 2 November 2015 PKO Bank Polski SA was notified about the contract of acquisition of shares of Visa Europe Limited by Visa Inc. (“Transaction”). The Bank as a member of Visa Europe Limited is among the beneficiaries of the Transaction. The Management Board of the PKO Bank Polski SA approved the conditions of the Bank’s participation in the transaction, according to which the total pre-estimated Bank's share in revenues (excluding the potential deferred payment of “earn-out”) is expected to amount EUR 88 875 thousand (which is equivalent to PLN 378 741 thousand (according to the NBP average exchange rate of 31 December 2015), including EUR 66 167 thousand that will be paid in cash and EUR 22 708 thousand with shares of Visa Inc. These amounts are not final and may change due to the complaint filed by the Bank subject to the proposed method of determining the Bank's participation in the settlement of the Transaction and possible objections of the remaining members of Visa Europe Limited, costs of the Transaction, as well as in the cases indicated in the documentation relating to the Transaction (the so-called “leakage”). The amounts due to the Bank should be settled by 30 June 2016. In accordance with the Transaction’s framework, additional deferred payment of "earn-out" is possible. It would be paid in cash after sixteen quarters from the date of transaction settlement, but its real value is currently not possible to determine. The transaction is subject to receipt of applicable regulatory approvals.
As at 31 December 2015, a portion of the anticipated as described above, remuneration in the amount of EUR 76 840 (i.e PLN 327 453 thousand) has been included in the valuation of shares in Visa Europe Limited (in other comprehensive income – in position of the revaluation of financial assets available for gross sales). So far Visa Europe Limited shares were valued at cost amounting to PLN 42.62 due to the inability to fair value measurement.
Debt securities by nominal value | 31.12.2015 | 31.12.2014 |
Treasury Bonds PLN | 17 907 268 | 12 348 504 |
municipal bonds PLN | 4 498 391 | 4 388 019 |
corporate bonds PLN | 4 090 736 | 4 058 660 |
Treasury Bonds EUR | 304 697 | - |
Treasury Bonds UAH | 49 976 | 35 666 |
Treasury Bonds USD | 77 375 | 146 088 |
corporate bonds UAH | 3 731 | 19 091 |
corporate bonds EUR | 362 228 | 404 919 |
corporate bonds USD | 223 572 | 200 998 |
Average yield of debt securities in issue | 31.12.2015 | 31.12.2014 |
in Poland | 2.2939% | 2.1232% |
on Ukraine | ||
in USD | 12.5778% | 10.9500% |
in UAH | 17.9630% | 22.6800% |
Change in investment securities available for sale | 2015 | 2014 |
At the beginning of the period | 22 279 225 | 14 073 078 |
Control take-over of subsidiaries | - | 1 680 696 |
Currency translation differrences | (30 306) | 23 111 |
Increases | 51 081 847 | 50 734 768 |
Decreases | (45 192 532) | (44 342 865) |
including change in impairment | 61 360 | 126 675 |
Change in fair while, which is recognized in other comprehensive income | 171 281 | 110 437 |
At the end of the period | 28 309 515 | 22 279 225 |
Debt securities available for sale by maturity as of 31 December 2015 | up to 1 month | 1 - 3 months | 3 months - 1 year | 1 - 5 years | over 5 years | Total |
Debt securities available for sale | ||||||
issued by the State Treasury | 80 059 | 2 624 | 220 940 | 6 882 091 | 11 172 292 | 18 358 006 |
issued by local government bodies | 366 | 4 399 | 269 987 | 1 640 552 | 2 698 422 | 4 613 726 |
issued by non-financial institutions | - | 81 146 | 56 215 | 2 289 796 | 690 702 | 3 117 859 |
issued by banks | - | - | 44 569 | 1 470 753 | - | 1 515 322 |
Total | 80 425 | 88 169 | 591 711 | 12 283 192 | 14 561 416 | 27 604 913 |
Debt securities available for sale by maturity as of 31 December 2014 | up to 1 month | 1 - 3 months | 3 months - 1 year | 1 - 5 years | over 5 years | Total |
Debt securities available for sale | ||||||
issued by the State Treasury | 373 065 | 55 508 | 270 605 | 7 865 617 | 4 216 256 | 12 781 051 |
issued by local government bodies | 524 | 5 324 | 253 275 | 1 523 879 | 2 697 323 | 4 480 325 |
issued by non-financial institutions | 290 339 | 84 458 | 498 351 | 1 429 631 | 1 172 815 | 3 475 594 |
issued by banks | 7 735 | 52 139 | 10 459 | 1 153 799 | - | 1 224 132 |
Total | 671 663 | 197 429 | 1 32 690 | 11 972 926 | 8 086 394 | 21 961 102 |
As at 31 December 2015 and as at 31 December 2014 the Bank did not have transferred financial assets, which are derecognised from the financial statements in their entirety for which the Bank would continue involvement in those assets.
Bank Deposit Guarantee Fund
In accordance with Article 25 of the Act on the Bank Guarantee Fund dated 14 December 1994 (uniform text Journal of Laws of 2014, item 1866 with subsequent amendments) the following assets are pledged as collateral for liabilities of the Bank Guarantee Fund:
31.12.2015 | 31.12.2014 | |
Fund's value | 608 199 | 901 339 |
Nominal value of the pledge | 650 000 | 930 000 |
Kind of pledge | treasury bonds | treasury bonds |
Pledge repurchase date | 25.01.2024 | 25.01.2025 |
Carrying value of the pledge | 627 367 | 915 957 |
Assets represent Treasury bonds with maturities sufficient to secure their carrying amount over the period defined by the Act. The Fund is increased or decreased on 1 July of each year, in proportion to the amount providing the basis for calculation of mandatory reserve deposits. Those funds are treated as assets held as collateral for own liabilities.
In connection with suspension of activities and filled bankruptcy motion by Polish Financial Supervision Authority (PFSA) on 21 November 2015 of the Spółdzielczy Bank Rzemiosła i Rolnictwa in Wołomin (the Co-operative Crafts and Agriculture Bank in Wołomin), the Bank Guarantee Fund obliged the parent company of the Group to make payment in amount of PLN 337 932 thousand, intended for the payment of the guaranteed deposits held by the depositors of this Bank.
The parent company of the Group made the abovementioned payment on 30 November 2015 and then decreased the value of deposit guarantee fund by the value of transferred assets:
- value of the deposit guarantee fund as at the II half year 2015PLN 946 431 thousand
- assets transferred to the Bank Guarantee FundPLN 337 932 thousand
- value of the deposit guarantee fund at 31.12.2015:PLN 608 499 thousand