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.
Annual report
2018
CASH AND CASH EQUIVALENTS
31.12.2018
31.12.2017
Cash and balances with the Central Bank
22 925
15 845
Deposits with the Central Bank
–
1 965
Current amounts due from banks
7 396
5 036
Restricted cash and cash equivalents, of which:
205
154
restricted cash and cash equivalents – amounts due from banks
195
143
restricted cash and cash equivalents – loans and advances to customers
10
11
Total
30 526
23 000
Restricted cash and cash equivalents
Cash and cash equivalents of PLN 205 million (as at 31 December 2017: PLN 154 million), including:
PLN 10 million (as at 31 December 2017: PLN 11 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 4 million (as at 31 December 2017: PLN 9 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 2018 and 31 December 2017, respectively;
PLN 191 million (as at 31 December 2017: PLN 134 million) pledged as a collateral for securitization transactions.
Cash flows from interests and dividends, both received and paid
INTEREST INCOME – RECEIVED:
2018
2017
loans to and other receivables from banks
29
168
hedging derivatives
524
391
debt securities
1 170
1 318
loans and advances to customers
8 943
8 193
Total
10 666
10 070
INTEREST EXPENSE – PAID:
2018
2017
amounts due to banks
(58)
(189)
amounts due to customers
(1 415)
(1 628)
debt securities
(50)
(91)
debt securities issued
(453)
(360)
subordinated liabilities
(74)
(62)
Total
(2 050)
(2 330)
DIVIDEND INCOME RECEIVED
2018
2017
from associates and joint ventures
22
24
from financial assets held for trading
1
–
financial instruments not held for trading, mandatorily measured at fair value through profit or loss
11
Total
34
24
Cash flow from operating activities – other adjustments
OTHER ADJUSTMENTS
2018
2017
Changes resulting from the acquisition of business entities
–
(30)
Cash flow hedges
138
(7)
Actuarial gains and losses
(1)
1
Foreign exchange differences on translation of a foreign branch
16
(36)
Remeasurement of shares in associates and joint ventures, and other changes
(51)
134
Scrapping of property, plant and equipment and intangible assets
(15)
(3)
Total
87
59
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
2018
2017
Gains on sale or scrapping of property, plant and equipment, intangible assets and assets held for sale
(57)
(95)
Losses on sale or scrapping of property, plant and equipment, intangible assets and assets held for sale
25
21
Gain associated with loss of control over a subsidiary
(25)
–
Gain on sale of shares and participation units
–
(43)
Total
(57)
(117)
INTEREST AND DIVIDENDS
2018
2017
Presented in investing activities:
(1 093)
(959)
dividends received from associates and joint ventures
(22)
(24)
interest received on investment securities
(935)
interest received on securities measured at fair value through other comprehensive income
(1 055)
interest received on securities measured at amortized cost
(4)
Presented in financing activities:
511
494
interest paid in respect of debt securities issued
413
244
interest paid on a subordinated loan
74
62
interest paid on loans and advances taken up
24
188
Total
(582)
(465)
CHANGES IN AMOUNTS DUE FROM BANKS
Change in the balance sheet
(2 428)
112
Changes resulting from the acquisition of business entities
–
37
Changes in allowances for expected credit losses
(1)
–
Exclusion of the change in cash and cash equivalents
2 412
551
Total
(17)
700
CHANGES IN SECURITIES
2018
2017
Change in the balance sheet
(10 039)
(2 670)
Changes due to IFRS 9 implementation
4 449
–
Changes in allowances for expected credit losses
(7)
18
Fair value of financial assets measured at fair value through other comprehensive income (net)
298
Unrealized net gains on available-for-sale financial assets (net)
619
Presentation of the acquisition /disposal of investment securities under investing activities
7 383
Presentation of the acquisition disposal of securities measured at fair value through other comprehensive income under investing activities
3 875
–
Presentation of the acquisition / disposal of securities measured at amortized cost under investing activities
2 111
–
Total
687
5 350
CHANGE IN LOANS AND ADVANCES TO CUSTOMERS
2018
2017
Change in the balance sheet
(9 284)
(5 022)
Changes due to IFRS 9 implementation
(5 165)
–
Changes in allowances for expected credit losses
2 449
180
Exclusion of the change in cash and cash equivalents
(1)
(2)
Total
(12 001)
(4 844)
CHANGE IN NON-CURRENT ASSETS HELD FOR SALE
2018
2017
Change in the balance sheet
123
(124)
Changes in allowances for assets held for sale
19
(19)
Total
142
(143)
CHANGE IN OTHER ASSETS AND INVENTORIES
2018
2017
Change in the balance sheet
(343)
202
Change in allowances for other assets and inventories
46
(14)
Total
(297)
188
CHANGE IN AMOUNTS DUE TO BANKS
2018
2017
Change in the balance sheet
(2 557)
(14 648)
Presentation of long-term loans taken up from/repaid to banks, including interest, under financing activities
2 516
13 446
Total
(41)
(1 202)
CHANGE IN AMOUNTS DUE TO CUSTOMERS
2018
2017
Change in the balance sheet
21 899
13 450
Presentation of long-term loans taken up from/repaid to financial institutions other than banks, including interest, under financing activities
(380)
1 603
Total
21 519
15 053
CHANGE IN LIABILITIES IN RESPECT OF DEBT SECURITIES IN ISSUE
2018
2017
Change in the balance sheet
4 695
9 439
Presentation of long-term liabilities in respect of debt securities in issue incurred/repaid, including interest, under financing activities
(4 457)
(10 558)
Total
238
(1 119)
CHANGE IN SUBORDINATED LIABILITIES
2018
2017
Change in the balance sheet
1 011
(819)
Presentation of subordinated liabilities incurred / repaid, including interest, under financing activities
(1 000)
836
Total
11
17
CHANGE IN ACCUMULATED ALLOWANCES FOR EXPECTED CREDIT LOSSES, IMPAIRMENT ALLOWANCES AND ALLOWANCES FOR OTHER NON-FINANCIAL ASSETS AND OTHER PROVISIONS
2018
2017
Change in accumulated allowances for credit losses and impairment allowances
(2 374)
(186)
on amounts due from banks
1
–
on loans and advances to customers
(2 449)
(180)
on securities
7
(18)
on other financial assets
(3)
(7)
provisions for financing liabilities and guarantees granted
70
19
Change in accumulated allowances on non-financial assets and other provisions
86
84
on assets held for sale
(19)
19
on property, plant and equipment
4
(20)
on intangible assets
22
3
on investments in associates and joint ventures
32
26
on other non-financial assets, including inventories
(43)
17
other provisions
90
39
Total
(2 288)
(102)
Reconciliation of items presented in the consolidated statement of financial position with financing activities in the consolidated cash flow statement
Note
31.12.2017
Recognized under financing activities in the consolidated cash flow statement
Recognized under operating activities in the consolidated cash flow statement
31.12.2018
Incurred
Repaid
Other changes, including foreign exchange differences
