Loans and advances to customers by sector and type of product | 31.12.2015 | 31.12.2014 |
Loans and advances to customers, gross, of which: | 198 700 917 | 187 519 861 |
financial sector | 4 834 177 | 1 630 191 |
corporate, of which: | 391 286 | 1 319 339 |
finance lease receivables | 101 | - |
deposits of the Brokerage House of PKO Bank Polski SA in the Stock Exchange Guarantee Fund and initial deposit |
10 217 | 11 440 |
receivables due from repurchase agreements | 4 432 239 | 310 852 |
International financial organisations | 10 652 | - |
non-financial sector | 183 864 042 | 175 789 529 |
housing | 103 005 812 | 98 105 676 |
corporate of which: | 54 668 212 | 53 930 247 |
finance lease receivables | 5 664 209 | 5 154 057 |
consumer | 23 529 145 | 21 644 625 |
debt securities (corporate) | 2 660 873 | 2 108 981 |
public sector | 10 002 698 | 10 100 141 |
corporate of which: | 7 307 327 | 7 277 642 |
finance lease receivables | 71 584 | 75 267 |
debt securities (municipal) | 2 695 371 | 2 822 499 |
Impairment allowances on loans and advances of which | (8 287 209) | (8 022 477) |
impairment allowances on receivable from leasing | (202 068) | (184 807) |
Loans and advances to customers, net | 190 413 708 | 179 497 384 |
Loans and advances to customers by method of calculating impairment allowances |
31.12.2015 | 31.12.2014 |
Assessed on an individual basis, of which: | 7 549 635 | 7 377 955 |
impaired of which: | 5 412 768 | 5 615 878 |
finance lease receivables | 407 063 | 344 975 |
not impaired of which: | 2 136 867 | 1 762 077 |
finance lease receivables | 332 905 | 300 021 |
Assessed on a portfolio basis, impaired | 7 688 142 | 7 361 432 |
impaired of which: | 7 688 142 | 7 361 432 |
finance lease receivables | 96 732 | 106 401 |
Assessed on a group basis (IBNR) | 183 463 140 | 172 780 474 |
finance lease receivables | 4 899 194 | 4 477 927 |
Loans and advances to customers, gross | 198 700 917 | 187 519 861 |
Impairment allowances on exposures assessed on an individual basis, of which: |
(2 895 857) | (2 963 733) |
finance lease receivables | (111 165) | (95 057) |
impaired of which: | (2 882 352) | (2 948 025) |
finance lease receivables | (109 504) | (95 057) |
Impairment allowances on exposures assessed on a portfolio basis of which: |
(4 822 183) | (4 426 869) |
finance lease receivables | (77 804) | (75 273) |
Impairment allowances on exposures assessed on a group basis (IBNR) of which: |
(569 169) | (631 875) |
finance lease receivables | (13 099) | (14 477) |
Impairment allowances - total | (8 287 209) | (8 022 477) |
Loans and advances to customers, net | 190 413 708 | 179 497 384 |
A detailed description of changes in allowances has been presented in the note 13 ‘Net impairment allowance, write-downs and provisions’.
As at 31 December 2015, the share of impaired loans amounted to 6.6% (as at 31 December 2014: 6.9%), whereas the coverage ratio for impaired loans as at 31 December 2015 (calculated as total impairment allowances on loans and advances to customers divided by gross carrying amount of impaired loans) amounted to 63.3% (as at 31 December 2014: 61.8%).
As at 31 December 2015, the share of loans overdue by more than 90 days in the gross amount of loans and advances was 4.9% (as at 31 December 2014: 5.2%).
Loans and advances to customers by customer segment | 31.12.2015 | 31.12.2014 |
Loans and advances granted, gross, of which: | 198 700 917 | 187 519 861 |
mortgage banking | 96 060 668 | 90 768 711 |
corporate | 51 160 753 | 50 661 094 |
retail and private banking | 23 529 145 | 21 644 625 |
small and medium enterprises | 23 497 243 | 24 123 139 |
International financial organisations | 10 652 | - |
receivables due from repurchase agreements | 4 432 239 | 310 852 |
other receivables | 10 217 | 11 440 |
Impairment allowances on loans and advances | (8 287 209) | (8 022 477) |
Loans and advances granted, net | 190 413 708 | 179 497 384 |
The structure of loans and advances presented in the note includes the following segmentation:
- corporate loans of financial institutions (ie. 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 public 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 | 31.12.2015 | 31.12.2014 |
Debt securities reclassified to the loans and advances to customers portfolio, gross | 1 339 721 | 1 494 983 |
Debt securities directly classified to the loans and advances to customers portfolio, gross | 4 016 523 | 3 436 497 |
Impairment allowances | (71 679) | (94 704) |
Total debt securities, net | 5 284 565 | 4 836 776 |
Securities reclassification
In 2012 due to the 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 category. As a result of the reclassification of the portfolio, the valuation methods for the portfolio 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 reclassified from financial assets available for sale to loans and advances to customers as at:
As at 31 December 2015 | nominal value | fair value | carrying amount |
Municipal bonds | 745 362 | 741 656 | 747 693 |
Corporate bonds | 582 000 | 591 416 | 537 703 |
Total | 1 327 362 | 1 333 072 | 1 285 396 |
As at 31 December 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 |
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 (4 700) thousand for the period from the date of reclassification until 31 December 2015 (31 December 2014 PLN (5 720) thousand). As at 31 December 2015, the average effective interest rate for the debt securities portfolio was 3.2558% (as at 31 December 2014 was 3.632%).
Finance lease agreements
The Group conducts lease activities through the entities from the PKO Leasing SA Group.
Gross lease investment value and minimal lease payments as at 31 December 2015 | Gross lease investment | Present value of the minimal lease payments | Unrealised income |
Gross lease receivables | |||
up to 1 year | 2 317 051 | 2 100 243 | 216 808 |
from 1 year to 5 years | 3 483 688 | 3 204 114 | 279 574 |
over 5 years | 477 436 | 431 537 | 45 899 |
Gross total | 6 278 175 | 5 735 894 | 542 281 |
Impairment allowances | (202 068) | (202 068) | - |
Net total | 6 076 107 | 5 533 826 | 542 281 |
Gross lease investment value and minimal lease payments as at 31 December 2014 | 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 2015 and 31 December 2014, there are no unguaranteed residual values attributable to the lessor.