Consolidated statement of financial position

The main items of the statement of financial position

The statement of financial position of the PKO Bank Polski SA Group is most influenced by the statement of financial position of the parent entity. It determines both the size of total assets and the structure of assets and liabilities.

The total assets of the PKO Bank Polski SA Group amounted to PLN 285.6 billion as at the end of 2016, which means an increase by 7.0% y/y. 

Assets structure (PLN million)

Liabilities structure (PLN million)

The increase in the volume of loans and advances to customers of PLN 10.2 billion y/y and of the securities portfolio of PLN 6.9 billion y/y had the key impact on the increase in assets of the PKO Bank Polski SA Group. The increase in assets was financed mainly with an increase in amounts due to customers of PLN 9.3 billion y/y and an increase in liabilities in respect of securities issued of PLN 5.1 billion y/y.

Loans and advances to customers of PKO Bank Polski SA Group – structure by type (in PLN million)

 31.12.201631.12.2015Change
(in PLN million)
Change
(%)
Cash and balances with the central bank13 32513 744-419-3.0%
Amounts due from banks5 3454 55379217.4%
Loans and advances to customers200 607190 41410 1935.4%
Securities51 40544 4576 94815.6%
Other assets14 89113 7721 1198.1%
Total assets285 573266 94018 6337.0%
Amounts due to banks19 21318 2939205.0%
Amount due to costumers205 066195 7599 3084.8%
Debt securities in issue and subordinated liabilites17 03211 9325 10042.7%
Liabilities of insurance activities2 9442 40154322.6%
Other liabilities8 7498 2914585.5%
Total liabilities253 004236 67516 3296.9%
Total equity32 56930 2652 3047.6%
Total liabilities and equity285 573266 94018 6337.0%
Loans/Deposits97.8%97.3% 0.6 p.p
Loans/Stable sources of funding*83.7%85.0% -1.3 p.p
Interest bearing assets/Assets90.1%89.7% 0.4 p.p
Interest paying liabilities/Liabilities84.5%84.7% -0.2 p.p

* Stable sources of financing include amounts due to customers and external financing in the form of: issue of securities, subordinated liabilities and amounts due to financial institutions.

Loans and advances to customers

The generic structure of the net credit portfolio consisted mainly of housing loans (52.9% of the portfolio as at the end of 2016); their volume increased by PLN 5.5 billion during the year. In 2016 an increase in the most profitable consumer loans of PLN 1.3 billion and of lease receivables (PLN +6.6 billion y/y) was also noted, which was related to the acquisition of RLPL by PKO Leasing SA.

Loans and advances to customers of PKO Bank Polski SA Group – structure by type (in PLN million)

 31.12.201631.12.2015Change
 (in PLN million)
Change
(%)
Loans and advances to customers net200 607190 41410 1935.4%
Loans182 258175 1637 0954.1%
Mortgages106 121100 6695 4535.4%
Business52 91552 5353800.7%
Consumer23 22221 9601 2625.7%
Debt securities4 8715 285-414-7.8%
Debt securities (corporate)2 2832 592-309-11.9%
Debt securities (municipal)2 5882 693-105-3.9%
Repurchase agreements1 3394 432-3 093-69.8%
Receivables from financial leases12 1395 5346 6052.2x

The maturity structure of loans and advances to customers, which increased by 7.2% y/y compared with 2015 in effect of the increase in the portfolio of housing loans, plays a dominant role in long-term loans (76.9% of the portfolio). Short-term loans with a share of 24.0% noted negative growth at a level of -1.6% y/y.

Loans and advances to customers of PKO Bank Polski SA Group – term structure (in PLN million)

 31.12.201631.12.2015Change
 (in PLN million)
Change
(%)
Structure 2016
Loans and advances to customers (gross). in this:208 609198 7019 9085.0%100.0%
Short-term48 22249 020-799-1.6%23.1%
Long-term160 388149 68110 7077.2%76.9%
Total impairment allowances-8 003-8 287284-3.4%x
Total 200 607190 41410 1935.4%x

Securities

As at the end of 2016, the securities portfolio of the PKO Bank Polski SA Group amounted to PLN 51.4 billion and recorded an increase by PLN 6.9 billion compared with the end of 2015. In the structure of the portfolio by type, the main items were debt securities issued by State treasury and issued by the central banks.

Securities portfolio of the PKO Bank Polski SA Group (in PLN million)

 31.12.201631.12.2015Change
(in PLN million)
Change
(%)
Financial instruments designated at fair value through profit or loss account13 93715 154-1 217-8.0%
Available for sale investment securities36 67628 3108 36629.6%
Investment securities held to maturity4662102552.2x
Trading assets326783-457-58.3%
Total51 40544 4576 94815.6%

Amounts due to customers

The generic structure of amounts due to customers, the main item amounts to the individuals (72.2% of the portfolio as at the end of 2016), along with an decrease in share of amounts due to corporate entities and liabilities of the budgetary unit.

Amounts due to customers of the PKO Bank Polski SA Group structure by type (in PLN million)

 31.12.201631.12.2015Change
(in PLN million)
Change
(%)
Structure 2016
Amounts due to individuals148 000135 41012 5909.3%72.2%
Amounts due to enterprises48 65751 214-2 557-5.0%23.7%
Amounts due to budget entities8 4099 134-725-7.9%4.1%
Total amounts due to customers205 066195 7599 3084.8%x

In 2016, the term structure of amounts due to customers changed. The share of liabilities with maturity up to 1 month increased by PLN 9.4 billion and amounted to 63.9% of all amounts due to customers as at 31 December 2016. An increased share was also noted in liabilities maturing after one year, associated with the migration of funds from short-term term deposits (up to 1 year) to new long-term structured deposits sold in 2016 as part of the Bank’s offer and to previously offered long-term (over 1 year) savings products. These movements in funds also contributed to the decrease in liabilities maturing from 1 to 3 months.

Amounts due to customers of the PKO Bank Polski SA Group – term structure (in PLN million)

 31.12.201631.12.2015Change
(in PLN million)
Change
(%)
Structure 2016
Up to 1 month135 960126 5329 4287.5%63.9%
1 month - 3 months19 16821 868-2 700-12.3%9.0%
3 months - 1 year35 33434 8404941.4%16.6%
1 year - 5 years13 86310 5653 29831.2%6.5%
over 5 years8 2966 1922 10434.0%3.9%
Adjustment of the value and interest-7 555-4 238-3 31778.3%x
Total amounts due to customers205 066195 7599 3084.8%x

External financing

The PKO Bank Polski SA Group is an active participant in the market of debt security issues, both local and international. These actions are intended to diversify the sources of financing of operations and to adapt them to regulatory requirements.

As at the end of 2016 the main item in these sources of financing constituted loans received from monetary financial institutions, including above all credit line from Nordea Bank AB (publ), being a part of the transaction of acquisition of the Nordea Group’s assets by PKO Bank Polski SA in 2014 (received for the purpose of financing the acquired portfolio of mortgage loans).

Another important category of long-term financing were liabilities in respect of securities in issue. The increase in these liabilities is mainly the effect of:

  • issue of mortgage bonds by PKO Bank Hipoteczny SA, which increased by PLN 4.3 billion in 2016 compared with the previous year,
  • acquisition of securitization bonds by the PKO Leasing SA Group under the acquisition transaction of RLPL, which enabled increasing liabilities related to issues by PLN 1.4 billion,

with a simultaneous drop in bonds in issue under the EMTN programme by PLN 0.6 billion y/y.

The volume of subordinated liabilities, which include a subordinated loan in CHF of acquired Bank, remained stable.

Detailed information on the issues carried out by the PKO Bank Polski SA Group is described in note 35 of the Consolidated Financial Statements of the PKO Bank Polski SA Group for the year ended 31 December 2016.

External financing of the PKO Bank Polski SA Group (in PLN million)

 31.12.201631.12.2015Change
(in PLN million)
Change
(%)
Debt securities in issue14 4939 4335 06053.6%
Subordinated liabilities2 5392 499401.6%
Loans and borrowings received  - monetary institutions*17 56716 4181 1497.0%
Loans and borrowings received  - non-monetary institutions**4 6623 92473818.8%
Total 39 26232 2746 98721.6%

* In the Statement of financial position of PKO Bank Polski SA Group carried in a position "amounts due to banks".

** In the Statement of financial position of PKO Bank Polski SA Group carried in a position "amounts due to clients".