44. Investments in associates and joint ventures
Selected information on associates and joint ventures
2018
The Group holds the following associates and joint ventures.
| Lp. | NAZWA JEDNOSTKI | SIEDZIBA | % UDZIAŁ W KAPITALE* | |
|---|---|---|---|---|
| 31.12.2018 | 31.12.2017 | |||
| Wspólne przedsięwzięcia PKO Banku Polskiego SA | ||||
| 1 | Centrum Elektronicznych Usług Płatniczych eService sp. z o.o. | Warszawa | 34 | 34 |
| 1 EVO Payments International sp. z o.o. | Warszawa | 100 | 100 | |
| 2 EVO Payments International s.r.o. | Praga, Czechy | 100 | 100 | |
| Wspólne przedsięwzięcie NEPTUN – fizan | ||||
| 3 „Centrum Obsługi Biznesu” sp. z o.o. | Poznań | 41,4455 | 41,4455 | |
| Jednostki stowarzyszone PKO Banku Polskiego SA | ||||
| 1 | Bank Pocztowy SA | Bydgoszcz | 25,0001 | 25,0001 |
| Spółka Dystrybucyjna Banku Pocztowego sp. z o.o. w likwidacji1 | Warszawa | – | 100 | |
| Centrum Operacyjne sp. z o.o. w likwidacji2 | Bydgoszcz | – | 100 | |
| 2 | „Poznański Fundusz Poręczeń Kredytowych” sp. z o.o. | Poznań | 33,33 | 33,33 |
| FERRUM SA3 | Katowice | – | 22,14 | |
| FERRUM MARKETING sp. z o.o. | Katowice | – | 100 | |
| Zakład Konstrukcji Spawanych FERRUM SA | Katowice | – | 100 | |
| Walcownia Rur FERRUM sp. z o.o. w likwidacji | Katowice | – | 100 | |
* share in equity of the direct parent / entity having significant impact
1 In 2018, the company was deleted from the Register of Businesses (decision dated 31 December 2018).
2 In 2018, the company was deleted from the Register of Businesses (decision dated 16 May 2018).
3 On 27 February 2018, an increase in the share capital of FERRUM SA was registered in the National Court Register (KRS), as a result of which the share of PKO Bank Polski SA in the company’s share capital and in the votes at the General Meeting of Shareholders went down from 22.14% to 9.38% – the company (with its subsidiaries) ceased to be an associate of the Bank, and the company’s shares were reclassified to financial assets; in July 2018, the company’s shares were sold.
| Name of joint ventures and associates | Core business |
|---|---|
| Centrum Elektronicznych Usług Płatniczych eServise Sp. z o.o. | The company offers services which consist of processing transactions involving payment instruments conducted both through POS terminals in Poland and abroad and online, lease of POS terminals, top-ups of mobile phone cards and servicing of gift cards.
PKO Bank Polski SA, together with the company, offer comprehensive services which involve attracting and servicing entities which use POS terminals and settling transactions conducted with payment instruments using such terminals. |
| „Centrum obsługi biznesu” SP. Z O.O. | A joint project of PKO Bank Polski SA, Buildco Poznań SA and the City of Poznań which consists of building a hotel in Poznań. The Bank is a member of a syndicate of banks which granted the company an investment loan for the execution of the said project. The hotel was completed and began operating in 2007. |
| Bank Pocztowy SA | Bank Pocztowy SA specializes in standard banking products offered to retail clients and a supplementary offer for micro-businesses and institutional clients. It also operates in the settlements and treasury segment. It makes use of the potential of the main shareholder – Poczta Polska SA and develops a range of products in collaboration with stakeholders across the Group. |
| „Poznański Fundusz Poręczeń Kredytowych” SP. Z O.O. | The company specializes in supporting the development of small- and medium-sized enterprises by providing guarantees and various types of services for business. The company grants guarantees for loans and advances extended by banks, including PKO Bank Polski SA, as well as bank guarantees, lease and factoring transactions, and bid bond guarantees. The entity cooperates with PKO Leasing SA.
Since April 2018, the company has granted sureties as part of the JEREMIE 2 initiative. |
A summary of the financial data separately for each joint venture and each associate of the Group was presented below. The amounts presented are derived from the financial statements of the specific entities prepared in accordance with IFRS or Polish Accounting Standards (PAS).[1] The data for 2017 has been derived from audited financial statements.
[1] In the case of entities which have subsidiaries, the data presented is derived from the consolidated financial statements of such entities.
Centrum Elektronicznych Usług Płatniczych eService sp. z o.o. (in accordance with IFRS)
| 31.12.2018 | 31.12.2017 | |
|---|---|---|
| Current assets | 264 | 198 |
| Non-current assets | 240 | 228 |
| Current liabilities | 204 | 161 |
| Non-current liabilities | 24 | 26 |
| 01.01-31.12.2018 | 01.01-31.12.2017 | |
| Revenue | 528 | 477 |
| Profit/(loss) for the period | 97 | 88 |
| Other comprehensive income | 2 | 6 |
| Total comprehensive income | 99 | 94 |
| Dividend received from an entity classified as a joint venture | 22 | 12 |
“Centrum Obsługi Biznesu” sp. o.o. (in accordance with PAS)
| 31.12.2018 | 31.12.2017 | |
|---|---|---|
| Current assets | 11 | 10 |
| Non-current assets | 79 | 82 |
| Current liabilities | 32 | 24 |
| Non-current liabilities | 51 | 60 |
| 01.01-31.12.2018 | 01.01-31.12.2017 | |
| Revenue | 25 | 28 |
| Profit/(loss) for the period | (1) | 4 |
Bank Pocztowy SA (in accordance with IFRS, data as published by the Company)
| 30.06.2018 | 31.12.2017 | |
|---|---|---|
| Total assets | 7 526 | 7 461 |
| Total liabilities | 6 942 | 6 827 |
| 01.01-30.06.2018 | 01.01-31.12.2017 | |
| Revenue | 231 | 457 |
| Profit (loss) | 11 | 5 |
| Other comprehensive income | 1 | 16 |
| Total comprehensive income | 12 | 21 |
“Poznański Fundusz Poręczeń Kredytowych” sp. z o.o. (in accordance with PAS)
| 31.12.2018 | 31.12.2017 | |
|---|---|---|
| Current assets | 28 | 24 |
| Current liabilities | 4 | 4 |
| Non-current liabilities | 5 | 2 |
| 01.01-31.12.2018 | 01.01-31.12.2017 | |
| Revenue | 1 | 2 |
| Profit/(loss) for the period | – | 1 |
Financial information
| 31.12.2018 | 31.12.2017 | |
|---|---|---|
| „Centrum Obsługi Biznesu” sp. z o.o. | – | – |
| Acquisition price | 17 | 17 |
| Change in the share in net assets | (14) | (14) |
| Impairment allowances | (3) | (3) |
| The Centrum Elektronicznych Usług Płatniczych eService sp. z o.o. Group | 256 | 244 |
| Value of shares as at the date of obtaining joint control | 197 | 197 |
| Change in the share in net assets | 59 | 47 |
| Total | 256 | 244 |
| 31.12.2018 | 31.12.2017 | |
|---|---|---|
| Bank Pocztowy SA1 | 88 | 130 |
| Acquisition price | 184 | 184 |
| Change in the share in net assets | 73 | 83 |
| Impairment allowances | (169) | (137) |
| „Poznański Fundusz Poręczeń Kredytowych” sp. z o.o. | – | – |
| Acquisition price | 2 | 2 |
| Change in the share in net assets | 4 | 4 |
| Impairment allowances | (6) | (6) |
| FERRUM SA Group | – | 19 |
| Acquisition price | – | 25 |
| Change in the share in net assets | – | (6) |
| Total | 88 | 149 |
1Bank Pocztowy SA does not have any subsidiaries as at 31 December 2018; it constituted a Group in prior periods.
| 2018 | 2017 | |
|---|---|---|
| Investments in joint ventures as at the beginning of the period | 244 | 227 |
| Share in profits/ (losses) | 34 | 31 |
| Net impairment allowance | – | (2) |
| Dividend | (22) | (12) |
| Investments in joint ventures as at the end of the period | 256 | 244 |
| 2018 | 2017 | |
|---|---|---|
| Investments in associates as at the beginning of the period | 149 | 159 |
| Share in profits/ (losses) | 3 | (9) |
| Net impairment allowance | (32) | (24) |
| Share in the change of other equity components | (13) | 1 |
| Reclassification of shares from associates to financial assets | (19) | 22 |
| Investments in associates as at the end of the period | 88 | 149 |
Impairment allowances
In 2018, the Group increased impairment allowance on the shares in Bank Pocztowy SA by PLN 32 million.
As at 31 December 2018, and as at 31 December 2017, the parent entity did not have any share in the contingent liabilities of associates acquired together with another investor.
Impairment allowances – reconciliation of movements
| 2018 | 2017 | |
|---|---|---|
| As at the beginning of the period | 146 | 120 |
| Recognized during the period | 32 | 26 |
| As at the end of the period | 178 | 146 |
| Net increase – impact on the income statement | (32) | (26) |