SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
2
This document is a translation from the original Polish version. In case of any discrepancies between the Polish and
English versions, the Polish version shall prevail
TABLE OF CONTENTS
SELECTED SEPARATE FINANCIAL DATA ................................................................................................................. 5
SEPARATE STATEMENT OF PROFIT OR LOSS ........................................................................................................ 6
SEPARATE STATEMENT OF OTHER COMPREHENSIVE INCOME .......................................................................... 7
SEPARATE STATEMENT OF FINANCIAL POSITION ................................................................................................. 8
SEPARATE STATEMENT OF CHANGES IN EQUITY ................................................................................................. 9
SEPARATE STATEMENT OF CASH FLOWS ............................................................................................................ 11
EXPLANATORY NOTES TO THE SEPARATE FINANCIAL STATEMENTS ............................................................. 13
1. GENERAL INFORMATION ABOUT THE BANK ................................................................................................... 13
2. ACCOUNTING PRINCIPLES APPLIED FOR THE PURPOSE OF PREPARATION OF THE SEPARATE
FINANCIAL STATEMENTS ......................................................................................................................................... 15
2.1. Basis for preparation of the separate financial statements ................................................................................................. 15
2.2. Going concern .................................................................................................................................................................... 15
2.3. Statement of compliance with IFRS ................................................................................................................................... 15
2.4. Changes in accounting policies and changes in presentation of financial data .................................................................. 18
2.5. Measurement of items denominated in foreign currencies ................................................................................................. 18
2.6. Interest income and expenses ............................................................................................................................................ 18
2.7. Fee and commission income .............................................................................................................................................. 18
2.8. Dividend income ................................................................................................................................................................. 20
2.9. Net trading income ............................................................................................................................................................. 20
2.10. Result on investment activities ........................................................................................................................................... 20
2.11. Result from derecognition of financial assets measured at amortized cost due to material modification ........................... 20
2.12. Result from legal risk related to foreign currency loans ...................................................................................................... 20
2.13. Other operating income and expenses ............................................................................................................................... 21
2.14. Income tax expense ........................................................................................................................................................... 21
2.15. Bank tax ............................................................................................................................................................................. 21
2.16. Classification and measurement of financial assets and liabilities ..................................................................................... 21
2.17. Intangible assets................................................................................................................................................................. 25
2.18. Property, plant and equipment ........................................................................................................................................... 26
2.19. Hedge accounting............................................................................................................................................................... 26
2.20. Provisions ........................................................................................................................................................................... 27
2.21. Leases ................................................................................................................................................................................ 28
2.22. Financial guarantees .......................................................................................................................................................... 29
2.23. Employee benefits .............................................................................................................................................................. 29
2.24. Capital ................................................................................................................................................................................ 30
2.25. Issuance of AT1 Capital Bonds .......................................................................................................................................... 30
2.26. Custody operations............................................................................................................................................................. 30
2.27. Cash and cash equivalent .................................................................................................................................................. 31
3. ESTIMATES AND JUDGEMENTS ......................................................................................................................... 31
4. NET INTEREST INCOME ....................................................................................................................................... 43
5. NET FEE AND COMMISSION INCOME ................................................................................................................. 44
6. DIVIDEND INCOME ................................................................................................................................................ 45
7. NET TRADING INCOME (INCLUDING RESULT ON FOREIGN EXCHANGE) ..................................................... 45
8. RESULT ON INVESTMENT ACTIVITIES ............................................................................................................... 45
9. NET IMPAIRMENT ALLOWENCES ON FINANCIAL ASSETS AND PROVISON ON CONTINGENT LIABILITIES
................................................................................................................................................................................ 46
10. GENERAL ADMINISTRATIVE COSTS .................................................................................................................. 47
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
3
11. PERSONNEL EXPENSES ...................................................................................................................................... 47
12. DEPRECIATION AND AMORTISATION ................................................................................................................ 48
13. OTHER OPERATING INCOME .............................................................................................................................. 48
14. OTHER OPERATING EXPENSES ......................................................................................................................... 48
15. INCOME TAX EXPENSE ........................................................................................................................................ 49
16. EARNING PER SHARE .......................................................................................................................................... 49
17. CASH AND CASH BALANCES AT CENTRAL BANK .......................................................................................... 50
18. AMOUNT DUE FROM OTHER BANKS ................................................................................................................. 51
19. DERIVATIVE FINANCIAL INSTRUMENTS ............................................................................................................ 52
20. HEDGE ACCOUNTING .......................................................................................................................................... 55
21. LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST ............................................ 60
22. LOANS AND ADVANCES TO CUSTOMERS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS .... 66
23. SECURITIES MEASURED AT AMORTISED COST .............................................................................................. 67
24. SECURITIES MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS ....................................................... 69
25. SECURITIES MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME ......................... 70
26. INVESTMENTS IN SUBSIDIARIES ........................................................................................................................ 71
27. INTANGIBLE ASSETS ........................................................................................................................................... 71
28. PROPERTY, PLANT AND EQUIPMENT ................................................................................................................ 74
29. LEASES .................................................................................................................................................................. 77
30. OTHER ASSETS .................................................................................................................................................... 79
31. AMOUNTS DUE TO OTHER BANKS .................................................................................................................... 79
32. AMOUNTS DUE TO CUSTOMERS ........................................................................................................................ 80
33. SUBORDINATED LIABILITIES .............................................................................................................................. 80
34. OTHER LIABILITIES .............................................................................................................................................. 81
35. PROVISIONS .......................................................................................................................................................... 81
36. DEFERRED INCOME TAX ..................................................................................................................................... 83
37. DISCONTINUED OPERATIONS ............................................................................................................................ 84
38. SHARE BASED PAYMENTS ................................................................................................................................. 84
39. CONTINGENT LIABILITIES ................................................................................................................................... 87
40. COLLATERALS ..................................................................................................................................................... 87
41. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES ................................................................................... 88
42. LOAN PORTFOLIO SALE ...................................................................................................................................... 94
43. SECURITIZATION .................................................................................................................................................. 94
44. CUSTODY OPERATIONS ...................................................................................................................................... 94
45. THE SHAREHOLDER’S STRUCTURE OF BNP PARIBAS BANK POLSKA S.A. ............................................... 95
46. SUPLEMENTARY CAPITAL AND OTHER CAPITALS ......................................................................................... 96
47. DIVIDENDS PAID ................................................................................................................................................... 98
48. DISTRIBUTION OF RETAINED EARNINGS .......................................................................................................... 98
49. CASH AND CASH EQUIVALENTS ........................................................................................................................ 98
50. ADDITIONAL INFORMATION REGARDING THE STATEMENT OF CASH FLOWS ........................................... 98
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
4
51. RELATED PARTY TRANSACTIONS ..................................................................................................................... 99
52. OPERATING SEGMENTS .................................................................................................................................... 102
53. LITIGATION, CLAIMS AND ADMINISTRATIVE PROCEEDINGS ....................................................................... 106
54. FINANCIAL RISK MANAGEMENT ...................................................................................................................... 116
54.1. Financial instrument strategy ............................................................................................................................................ 116
54.2. Credit risk ......................................................................................................................................................................... 116
54.3. Counterparty risk .............................................................................................................................................................. 126
54.4. Market risk (interest rate risk in the trading book and currency risk) ................................................................................ 127
54.5. Interest rate risk in the banking portfolio (ALM Treasury) ................................................................................................. 129
54.6. Liquidity risk ...................................................................................................................................................................... 133
54.7. Operational risk ................................................................................................................................................................ 137
55. CAPITAL ADEQUACY MANAGEMENT .............................................................................................................. 139
56. MAJOR EVENTS IN BNP PARIBAS BANK POLSKA S.A. IN 2024 ................................................................... 142
57. SUBSEQUENT EVENTS ...................................................................................................................................... 145
SIGNATURES OF THE MANAGEMENT BOARD MEMBERS OF BNP PARIBAS BANK POLSKA S.A. ............... 147
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
5
SELECTED SEPARATE FINANCIAL DATA
Selected separate financial data
in PLN’000
in PLN’000
in EUR’000
in EUR’000
Statement of profit or loss
12 months
to 31.12.2024
12 months
to 31.12.2023
12 months
to 31.12.2024
12 months
to 31.12.2023
Net interest income
4
5,631,813
5,126,329
1,308,446
1,132,040
Net fee and commission income
5
1,202,511
1,161,271
279,381
256,442
Profit before tax
2,903,639
1,753,175
674,606
387,151
Profit after tax
2,320,798
1,007,828
539,194
222,557
Total comprehensive income
2,346,678
1,590,864
545,207
351,308
Statement of cash flows
12 months
to 31.12.2024
12 months
to 31.12.2023
12 months
to 31.12.2024
12 months
to 31.12.2023
Total net cash flows
2,408,579
2,674,665
559,588
590,642
Ratios
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Number of shares (items)
45
147,799,870
147,676,946
147,799,870
147,676,946
Earnings per share
16
15.71
6.83
3.65
1.51
Statement of financial position
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Total assets
163,087,501
156,388,399
38,166,979
35,967,893
Loans and advances to customers measured at
amortised cost
21
81,189,258
81,137,225
19,000,528
18,660,815
Loans and advances to customers measured at
fair value through profit or loss
22
452,506
653,582
105,899
150,318
Total liabilities
147,775,592
143,575,690
34,583,569
33,021,088
Amounts due to customers
32
130,830,128
127,134,065
30,617,863
29,239,665
Share capital
45
147,800
147,677
34,589
33,964
Total equity
15,311,909
12,812,709
3,583,410
2,946,805
Capital adequacy
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Total own funds
15,916,910
14,928,863
3,724,996
3,433,501
Total risk exposure
90,554,074
86,385,831
21,192,154
19,867,946
Total capital ratio
17.58%
17.28%
17.58%
17.28%
Tier 1 capital ratio
14.10%
12.97%
14.10%
12.97%
For purposes of data conversion into EUR, the following exchange rates are used by the Bank:
For items of the statement of financial position, rates of the National Bank of Poland are applied::
● as at 31.12.2024 - 1 EUR = 4.2730 PLN
● as at 31.12.2023 - 1 EUR = 4.3480 PLN
For items of the statement of profit or loss and the statement of cash flows, the EUR exchange rate is calculated as the arithmetic
mean of the rates published by the National Bank of Poland as at the last day of each month in the period:
● for the period from 1.01.2024 to 31.12.2024 - 1 EUR = 4.3042 PLN
● for the period from 1.01.2023 to 31.12.2023 - 1 EUR = 4.5284 PLN
Calculation of earnings (loss) per share was described in Note 16.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
6
SEPARATE STATEMENT OF PROFIT OR LOSS
Note
12 months to
31.12.2024
12 months to
31.12.2023
Interest income
4
9,905,437
9,441,085
Interest income calculated with the use of effective interest rate
method
8,981,723
8,938,972
interest income on financial instruments measured at
amortised cost
8,131,361
8,280,945
interest income on financial instruments measured at fair
value through other comprehensive income
850,362
658,027
Income of a similar nature to interest on instruments measured
at fair value through profit or loss
923,714
502,113
Interest expense
4
(4,273,624)
(4,314,756)
Net interest income
5,631,813
5,126,329
Fee and commission income
5
1,481,276
1,426,873
Fee and commission expenses
5
(278,765)
(265,602)
Net fee and commission income
1,202,511
1,161,271
Dividend income
13,147
10,881
Net trading income (of which exchange result)
7
841,037
951,591
Result on investment activities
8
14,374
11,863
Result on hedge accounting
20
1,946
(30,939)
Result on derecognition of financial assets measured at amortized
cost due to significant modification
(11,569)
4,190
Net allowances on expected credit losses of financial assets and
provisions for contingent liabilities
9
(225,350)
(22,570)
Result on legal risk related to foreign currency loans
53
(795,728)
(1,978,086)
General administrative expenses
10
(2,717,137)
(2,522,978)
Depreciation and amortization
12
(514,858)
(456,655)
Other operating income
13
116,630
142,828
Other operating expenses
14
(248,206)
(232,897)
Operating result
3,308,610
2,164,828
Tax on financial institutions
(404,971)
(411,653)
Profit before tax
2,903,639
1,753,175
Income tax expenses
15
(582,841)
(745,347)
Net profit
2,320,798
1,007,828
attributable to equity holders of the Group
2,320,798
1,007,828
Earnings (loss) per share (in PLN per one share)
Basic
15.71
6.83
Diluted
15.69
6.82
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
7
SEPARATE STATEMENT OF OTHER COMPREHENSIVE
INCOME
Note
12 months ended
31.12.2024
12 months ended
31.12.2023
Net profit for the period
2,320,798
1,007,828
Other comprehensive income
Items that may be reclassified subsequently to profit or loss upon
fulfilment of certain conditions
27,255
584,151
Measurement of financial assets measured at fair value through other
comprehensive income, gross
25
43,787
653,872
Deferred income tax on the valuation of gross financial assets
measured through other comprehensive income
36
(8,320)
(124,236)
Measurement of cash flow hedge accounting derivatives
20
(10,138)
67,303
Deferred income tax on valuation of gross derivatives hedging cash
flows
36
1,926
(12,788)
Items that will not be reclassified to profit or loss
(1,375)
(1,115)
Actuary valuation of employee benefits
3e
(1,698)
(1,377)
Deferred income tax on actuarial valuation of gross personnel expenses
36
323
262
Other comprehensive income (net)
25,880
583,036
Total comprehensive income
2,346,678
1,590,864
attributable to equity holders of the Bank
2,346,678
1,590,864
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
8
SEPARATE STATEMENT OF FINANCIAL POSITION
ASSETS
Note
31 December 2024
31 December 2023
Cash and balances at Central Bank
17
11,325,551
6,883,582
Amounts due from banks
18
7,789,297
17,890,698
Derivative financial instruments
19
2,440,116
3,146,745
Differences from hedge accounting
20
230,658
94,496
Loans and advances to customers measured at amortised cost
21
81,189,258
81,137,225
Loans and advances to customers measured at fair value through profit
or loss
22
452,506
653,582
Securities measured at amortised cost
23
32,364,550
26,246,278
Securities measured at fair value through profit or loss
24
320,925
290,887
Securities measured at fair value through other comprehensive income
25
23,027,454
16,634,303
Investments in subsidiaries
26
108,426
118,726
Intangible assets
27
978,163
940,082
Property, plant and equipment
28
946,796
959,737
Deferred tax assets
36
685,634
608,064
Other assets
30
1,228,167
783,994
Total assets
163,087,501
156,388,399
LIABILITIES
31 December 2024
31 December 2023
Amounts due to other banks
31
5,757,872
4,571,172
Derivative financial instruments
19
2,311,741
2,865,275
Differences from hedge accounting
20
260,025
(7,365)
Amounts due to customers
32
130,830,128
127,134,065
Subordinated liabilities
33
3,420,128
4,336,072
Leasing liabilities
29
606,204
626,174
Other liabilities
34
2,262,300
2,133,200
Current tax liabilities
358,468
376,736
Provisions
35
1,968,726
1,540,361
Total liabilities
147,775,592
143,575,690
EQUITY
31 December 2024
31 December 2023
Share capital
45
147,800
147,677
Supplementary capital
46
9,110,976
9,110,976
Other reserve capital
46
4,024,205
3,513,978
AT1 Capital bonds
46
650,000
-
Revaluation reserve
46
(541,084)
(566,964)
Retained earnings
1,920,012
607,042
retained profit
(400,786)
(400,786)
net profit for the period
2,320,798
1,007,828
Total equity
15,311,909
12,812,709
Total liabilities and equity
163,087,501
156,388,399
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
9
SEPARATE STATEMENT OF CHANGES IN EQUITY
Retained earnings
Share capital
Supplementary
capital
Other reserve
capital
AT1 Capital
bonds
Revaluation
reserve
Retained profit
Net profit for
the period
Total
Balance as at 1 January 2024
147,677
9,110,976
3,513,978
-
(566,964)
(400,786)
1,007,828
12,812,709
Total comprehensive income for the period
-
-
-
-
25,880
-
2,320,798
2,346,678
Net profit for the period
-
-
-
-
-
-
2,320,798
2,320,798
Other comprehensive income for the period
-
-
-
-
25,880
-
-
25,880
Distribution of retained earnings
-
-
503,830
-
-
-
(1,007,828)
(503,998)
Distribution of retained earnings intended for
capital
-
-
503,830
-
-
-
(503,830)
-
Dividends paid out
-
-
-
-
-
-
(503,998)
(503,998)
Share issue
123
-
-
-
-
-
-
123
Series share issue
123
-
-
-
-
-
-
123
AT1 Capital bonds issue
-
-
-
650,000
-
-
-
650,000
Management stock options*
-
-
6,397
-
-
-
-
6,397
Balance as at 31 December 2024
147,800
9,110,976
4,024,205
650,000
(541,084)
(400,786)
2,320,798
15,311,909
* the management stock option programme is described in Note 38.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
10
Retained earnings
Share capital
Supplementary
capital
Other reserve
capital
AT1 Capital
bonds
Revaluation
reserve
Retained profit
Net profit for
the period
Share capital
Balance as at 1 January 2023
147,593
9,110,976
3,136,599
-
(1,150,000)
(400,786)
370,892
11,215,274
Total comprehensive income for the period
-
-
-
-
583,036
-
1,007,828
1,590,864
Net profit for the period
-
-
-
-
-
-
1,007,828
1,007,828
Other comprehensive income for the period
-
-
-
-
583,036
-
-
583,036
Distribution of retained earnings
-
-
370,892
-
-
-
(370,892)
-
Distribution of retained earnings intended for
capital
-
-
370,892
-
-
-
(370,892)
-
Share issue
84
-
-
-
-
-
-
84
Management stock options*
-
-
6,487
-
-
-
-
6,487
Balance as at 31 December 2023
147,677
9,110,976
3,513,978
-
(566,964)
(400,786)
1,007,828
12,812,709
* the management stock option programme is described in Note 38.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
11
SEPARATE STATEMENT OF CASH FLOWS
CASH FLOWS FROM OPERATING ACTIVITIES:
Note
12 months
ended 31.12.2024
12 months
ended 31.12.2023
Net profit (loss)
2,320,798
1,007,828
Adjustments for:
13,650,517
4,949,423
Income tax expenses
582,841
745,347
Depreciation and amortization
12
514,858
456,655
Dividend income
6
(13,147)
(10,881)
Interest income
4
(9,905,437)
(9,441,085)
Interest expense
4
4,273,624
4,314,756
Change in provisions
426,667
(684,307)
Change in amounts due from banks
50
8,065,054
(7,670,167)
Change in assets due to derivative financial instruments
570,467
16,056
Change in loans and advances to customers measured at amortised
cost
50
(117,129)
2,756,163
Change in loans and advances to customers measured at fair value
through profit or loss
201,076
295,716
Change in amounts due to banks
50
(113,260)
2,749,344
Change in liabilities due to derivative financial instruments
(296,282)
229,004
Change in amounts due to customers
50
3,781,045
6,602,512
Change in other assets and deferred tax assets
(431,136)
133,198
Change in other liabilities and current income tax liabilities
134,307
(232,760)
Other adjustments
50
(59,943)
(303,873)
Interest received
10,124,278
9,712,055
Interest paid
(4,090,806)
(4,203,658)
Tax paid
(683,561)
(513,539)
Leasing fees for short-term leases not included in the valuation of the
liability
(1,041)
(1,113)
Net cash flows from operating activities
15,283,273
5,957,251
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
12
CASH FLOWS FROM INVESTING ACTIVITIES:
12 months
ended 31.12.2024
12 months
ended 31.12.2023
Inflows
241,785,413
182,009,211
Sale of debt securities
241,748,903
181,983,702
Sale of intangible assets and property, plant and equipment
13,063
14,628
Dividends received and other investment income
13,147
10,881
Disposal of shares in subsidiaries and liquidation of subsidiaries
10,300
-
Outflows
(254,811,674)
(185,152,254)
Purchase of securities
(254,347,370)
(184,707,582)
Purchase of intangible assets and property, plant and equipment
(464,304)
(444,672)
Net cash flows from investing activities
(13,026,261)
(3,143,043)
CASH FLOWS FROM FINANCING ACTIVITIES:
12 months
ended 31.12.2024
12 months
ended 31.12.2023
Inflows
1,945,797
1,784
Borrowing of long-term loans received and subordinated liabilities
1,295,674
-
AT1 Capital bonds
650,000
-
Net inflows from issuance of shares and return of capital contributions
123
1,784
Outflows
(1,794,230)
(141,327)
Repayment of long-term loans received and subordinated liabilities
(1,148,623)
(369)
Repayment of leasing liabilities
(141,609)
(140,958)
Dividends paid out
(503,998)
-
Net cash flows from financing activities
151,567
(139,543)
TOTAL NET CASH AND CASH EQUIVALENTS
2,408,579
2,674,665
Cash and cash equivalents at the beginning of the period
15,801,272
13,126,607
Cash and cash equivalents at the end of the period
49
18,209,851
15,801,272
Effect of exchange rate fluctuations on cash and cash equivalents
(91,498)
(106,132)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
13
EXPLANATORY NOTES TO THE SEPARATE FINANCIAL
STATEMENTS
1. GENERAL INFORMATION ABOUT THE BANK
BNP Paribas Bank Polska S.A. (the “Bank” or “BNP Paribas”) is the parent company in the Capital Group of BNP Paribas Bank
Polska S.A. (the “Group”).
The registered office of BNP Paribas Bank Polska S.A. is located at Marcin Kasprzak Street 2, 01-211 Warsaw, Poland. The Bank
is registered in Poland, by the District Court for the capital city of Warsaw, 13th Commercial Division of the National Court Register,
under number KRS 0000011571. The duration of the parent entity and the entities from the Capital Group is unlimited.
Since 27 May 2011, pursuant to the decision of the Management Board of Warsaw Stock Exchange (WSE), the Bank's shares
have been listed on WSE and classified as finance - banking sector.
As at 31 December 2024, the headcount of the Bank amounted to 7,746 FTEs, as compared to 8,037 FTEs as at
31 December 2023.
BNP Paribas is a universal commercial bank offering a wide range of banking services provided to individual and institutional
clients in accordance with the scope of services specified in the Bank's Statute. The Bank operates both in Polish zlotys and in
foreign currencies and actively participates in trading on domestic and foreign financial markets. In addition, through its
subsidiaries, the Bank conducts brokerage and leasing activities and provides other financial services.
The Bank operates mainly in Poland.
Composition of the Bank’s Management Board as of 31 December 2024:
FULL NAME
FUNCTION HELD IN THE MANAGEMENT BOARD OF THE BANK
Przemysław Gdański
President of the Management Board
André Boulanger
Vice-President of the Management Board
Małgorzata Dąbrowska
Vice-President of the Management Board
Wojciech Kembłowski
Vice-President of the Management Board
Piotr Konieczny
Vice-President of the Management Board
Magdalena Nowicka
Vice-President of the Management Board
Volodymyr Radin
Vice-President of the Management Board
Agnieszka Wolska
Vice-President of the Management Board
There were no changes to the composition of the Bank's Management Board in the period of 1 January - 31 December 2024.
On 29 February 2024, the Supervisory Board adopted a resolution to set the number of members of the Bank's Management Board
for the new term of office at eight and appointed the Management Board for a new three-year term of office with its current
composition.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Composition of the Bank’s Supervisory Board as of 31 December 2024:
FULL NAME
OFFICE HELD IN THE SUPERVISORY BOARD OF THE BANK
Lucyna Stańczak-Wuczyńska
Chairman of the Supervisory Board, Independent member
Francois Benaroya
Vice-Chairman of the Supervisory Board
Jean – Charles Aranda
Member of the Supervisory Board
Małgorzata Chruściak
Independent Member of the Supervisory Board
Sophie Heller
Member of the Supervisory Board
Monika Kaczorek
Independent Member of the Supervisory Board
Vincent Metz
Member of the Supervisory Board
Piotr Mietkowski
Member of the Supervisory Board
Khatleen Pauwels
Member of the Supervisory Board
Jacques Rinino
Independent Member of the Supervisory Board
Mariusz Warych
Independent Member of the Supervisory Board
Changes in the composition of the Supervisory Board in the period from 1 January to 31 December 2024:
● On 25 June 2024, the Bank received the resignation of Mr Jarosław Bauc from his position as a member of the Bank's
Supervisory Board, effective 2 July 2024.
● On 2 July 2024, the Extraordinary General Meeting of the Bank appointed Ms Monika Kaczorek as an independent member
of the Bank's Supervisory Board, effective 3 July 2024 until the end of the current five-year joint term of office of the members
of the Supervisory Board.
● On 22 November 2024, Ms Magdalena Dziewguć resigned from the position of a Member of the Banks’s Supervisory Board,
effective 21 November 2024.
Approval of the financial statements for publication
The present Separate financial statements have been prepared as at 31 December 2024 and approved for publication by the
Management Board of the Bank on 12 March 2025.
Consolidated financial statements of BNP Paribas Bank Polska S.A. Capital Group have been prepared as at 31 December 2024
and approved for publication by the Management Board of the Bank on 12 March 2025.
Data included in the above mentioned financial statements are presented for the financial year ended 31 December 2024 with
comparative data for the financial year ended 31 December 2023.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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2. ACCOUNTING PRINCIPLES APPLIED FOR THE
PURPOSE OF PREPARATION OF THE SEPARATE
FINANCIAL STATEMENTS
2.1. Basis for preparation of the separate financial statements
The present separate financial statements have been prepared on the historical cost basis, with the exception of derivative
contracts, financial assets not meeting the SPPI test, financial assets assigned to the business model, which does not entail holding
them to obtain contractual cash flows, equity instruments measured at fair value through profit or loss, and except for financial
instruments measured at fair value through other comprehensive income and equity instruments for which the fair value option has
been applied for other comprehensive income.
The separate financial statements have been prepared in Polish zloty and all values, unless otherwise indicated, are given in
thousands of zloty (PLN thousand).
2.2. Going concern
The present separate financial statements have been prepared assuming that the Bank will continue as a going concern in
substantially the same scope, in the foreseeable future, i.e. within at least 12 months from the date of the reporting period end.
2.3. Statement of compliance with IFRS
The present separate financial statements have been prepared in accordance with International Financial Reporting Standards as
endorsed by the European Union (“IFRS EU”).
The present separate financial statements have been prepared in accordance with the requirements specified in International
Accounting Standards (“IAS”) and International Financial Reporting Standards endorsed by the European Union (“IFRS EU”), as
well as the related interpretations, except for the standards and interpretations listed below, which are awaiting endorsement by
the European Union or have already been endorsed by the European Union but entered or will enter into force after the end of the
reporting period.
In the period included in these separate financial statements, the Bank did not early apply standards and interpretations endorsed
by the EU, which will enter into force after the balance sheet date.
New standards, interpretations and amendments to these standards that have already been issued
by the International Accounting Standards Board (IASB) but not yet approved by the European
Union
Standards /
Interpretations
Date of
issue/
publication
Date of
entry into
force in EU
Approved by
the EU
Description of changes
IFRS 19: Subsidiaries
without Public
Accountability:
Disclosures
9.05.2024
01.01.2027
No
IFRS 19 allows eligible entities to apply limited disclosure
requirements while applying the recognition, measurement
and presentation requirements of other IFRS accounting
standards.
The changes will not have a significant impact on the
Bank’s financial statements.
IFRS 18 Presentation and
Disclosure of Information
in Financial Statements
9.04.2024
01.01.2027
No
IFRS 18 introduces new presentation and disclosure
requirements in the financial statements for all entities
applying IFRS standards.
The Bank analyzes the impact of the change on the Bank's
financial statements.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Amendments to IFRS 9
and IFRS 7: Changes to
the classification and
measurement of financial
instruments
30.05.2024
01.01.2026
No
The amendments clarify, among others, that the financial
liability is derecognised on the settlement date and
introduce an accounting policy choice to derecognise
financial liabilities settled by means of an electronic
payment system before the settlement date.
The changes will not have a significant impact on the
Bank’s financial statements.
Annual Improvements to
IFRS - Volume 11
18.07.2024
01.01.2026
No
The IASB's annual amendment cycle process deals with
non-urgent but necessary clarifications and amendments to
IFRSs. In July 2024, the International Accounting
Standards Board issued ‘Annual Improvements to IFRS -
Volume 11’.
The changes will not have a significant impact on the
Bank’s financial statements.
Amendments to IFRS 9
and IFRS 7: Nature-
dependent electricity
contracts
18.12.2024
01.01.2026
No
The amendments include:
▪ clarifying the application of the ‘own-use’
requirements;
▪ permitting hedge accounting if these contracts are
used as hedging instruments; and
▪ adding new disclosure requirements to enable
investors to understand the effect of these contracts
on a company’s financial performance and cash flows.
The changes will not have a significant impact on the
Bank’s financial statements.
New standards, interpretations and amendments to the existing standards, that have been issued
by the International Accounting Standards Board (IASB), approved by the European Union but not
yet effective and have not been implemented by the Bank yet
Standards /
Interpretations
Date of
issue/
publication
Date of
entry into
force in
EU
Date of
approval by
EU
Description of changes
Amendments to IAS 21
The Effects of
Changes in Foreign
Exchange Rates: Non-
exchangeability of
currencies
15.08.2023
01.01.2025
12.11.2024
The amendments set out how an entity should assess
whether a currency is convertible into another currency and
how it should set a spot exchange rate when it is not.
The changes will not have a significant impact on the Bank’s
financial statements.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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New standards, interpretations and amendments to the existing standards, that have been issued
by the International Accounting Standards Board (IASB), approved by the European Union, have
become effective and have been applied by the Bank
Standards /
Interpretations
Date of
issue/
publication
Date of
entry into
force in
EU
Date of
approval by
EU
Description of changes
Amendments to IFRS
16: Lease Liability in a
Sale and Leaseback
22.09.2022
01.01.2024
20.11.2023
The amendments to IFRS 16 set out the requirements
that a seller-lessee is required to apply in measuring the
lease liability arising from sale and leaseback
transactions so that it does not recognise a gain or loss
on the right-of-use that it retains.
The changes do not have a significant impact on the
Bank’s financial statements.
Amendments to IAS
1: Classification of
liabilities with
covenants as current
or non-current
23.01.2020/
31.10.2022
01.01.2024
19.12.2023
The amendments to IAS 1 set out the requirements for
classifying liabilities as current or non-current.
The amendments to IAS 1 clarify:
• what is meant by a right to defer maturity;
• that the right to defer maturity must exist at the end
of the reporting period;
• that classification is not affected by the likelihood of
an entity exercising its right to defer;
• that only when an option to settle a liability by
issuing its own equity instruments is classified as
an equity instrument, is the settlement of such an
option disregarded for the purposes of classifying
the liability itself as either short- or long-term.
In addition, an entity has been required to disclose
information when a liability under a loan agreement is
classified as a non-current liability and the entity's right to
defer repayment of the liability is conditional on the
satisfaction of future covenants within twelve months.
The changes do not have a significant impact on the
Bank’s financial statements.
Amendments to IAS 7
and IFRS 7: Supplier
finance arrangements.
25.05.2023
01.01.2024
15.05.2024
The amendments set out the features of supplier
financing mechanisms and require additional disclosures
about such mechanisms.
Supplier financing mechanisms are often referred to as
supply chain financing, accounts payable financing or
reverse factoring mechanisms.
The disclosure requirements are intended to help users
of financial statements understand the impact of supplier
financing arrangements on an entity's liabilities, cash
flows and liquidity risk exposures.
The changes do not have a significant impact on the
Bank’s financial statements.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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2.4. Changes in accounting policies and changes in presentation of
financial data
The Bank has not made any changes to its accounting policies in these Separate Financial Statements.
2.5. Measurement of items denominated in foreign currencies
Functional and presentation currency
Items included in the financial statements are measured in the currency of the primary economic environment in which the Bank
operates ("functional currency"). The separate financial statements are presented in PLN thousands, which is the functional
currency of the Bank and the presentation currency of the Bank's financial statements.
Transactions and balances
Transactions expressed in foreign currencies are translated into the functional currency at the exchange rate applicable as at the
transaction date.
At the end of the reporting period, monetary assets and liabilities expressed in currencies other than Polish zloty are translated
into Polish zlotys using the average exchange rate for a given currency determined by the National Bank of Poland in force at the
end of the reporting period. Foreign exchange differences resulting from the translation are recognised as a net trading income.
Non-monetary assets and liabilities recognised at historical cost expressed in a foreign currency are disclosed at the historical
exchange rate as at the transaction date. Non-monetary assets and liabilities recognised at fair value expressed in a foreign
currency are translated at the exchange rate effective at the date of fair value measurement.
Basic currency rates used in the preparation of the present financial statements as at 31 December 2024 and 31 December 2023
are presented in the below table:
31.12.2024
31.12.2023
1 EUR
4.2730
4.3480
1 USD
4.1012
3.9350
1 GBP
5.1488
4.9997
1 CHF
4.5371
4.6828
2.6. Interest income and expenses
The profit or loss statement includes all interest income on financial instruments measured at amortised cost using the effective
interest rate, financial assets measured at fair value through other comprehensive income but also income with its characteristics
similar to interest income on financial assets and liabilities measured at fair value through profit or loss.
The effective interest rate is the rate used to estimate future payments or incomes throughout the expected life of financial assets
or financial liabilities, discounted to the gross balance sheet value of a financial asset or to the amortised cost of a financial liability.
The calculation of the effective interest rate includes all commissions paid and received by the parties, transaction costs and any
other premiums and discounts that are an integral part of the effective interest rate.
Interest income is calculated using the effective interest rate based on the balance sheet amount of financial assets except for
financial assets that are impaired due to credit risk or purchased or originated credit impaired financial assets ('POCI'). At the
moment of recognition of financial assets impairment (reclassification of a financial asset to Stage 3), interest income is accrued
on the net value of the financial asset and is recognised at the effective interest rate.
In case of POCI, the Bank uses the credit risk-adjusted effective interest rate to calculate interest income. Interest income is
calculated based on net exposure (gross exposure less impairment allowance).
2.7. Fee and commission income
Fees and commissions, which are not accounted for using the effective interest rate method but in accordance with the straight-
line method or recognised on a one-off basis, are recognised in “Net fee and commission income”.
Income settled over time with straight-line method includes commissions on overdrafts, revolving loans and commitments
(guarantees and credit facilities).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Fees for the Bank's commitment to grant a loan or an advance (commissions from promises issued) are deferred and as soon as
financial assets are recognised they are accounted for as an element of the effective interest rate or on a straight-line basis.
Revenues from contracts with customers include both fees and commissions, which are settled over time using the straight-line
method (throughout the period of providing the service) as well as on a one-off basis. Revenues are presented as the amount of
the Bank’s remuneration specified in the contracts with customers and do not include amounts collected by the Bank on behalf of
third parties, which are then transferred to them (i.e., insurance premiums collected which the Bank transfers to insurance
companies). The Bank recognizes revenues when the performance obligation is met (or when it is being fulfilled) by transferring
the promised good or service (i.e. an asset) to the customer.
Loans and advances
In respect of loan agreements, the Bank generates, in particular, revenues for readiness to give the funding under the granted
credit limits, which are recognised in the statement of profit or loss on a straight-line basis over the period for which the limit was
granted. For contracts without a specified repayment schedule, in the case of revolving loans, fees for each instalment of a loan
tranche are recognised over the average expected repayment period. Under certain loan agreements, the Bank receives
commissions for readiness or commitment, the amount of which is calculated on the basis of loan balances at the specified moment
of the duration of the loan agreement. Despite the fact that they partially constitute remuneration for the provision of services, in
case of which the customers derive benefits in a continuous manner, due to significant uncertainty about the credit balance at a
specific point in the future, the Bank recognizes this type of income when the basis of its calculation is certain.
Debit and credit cards
Under debit card agreements with customers, the Bank recognizes revenues from various types of fees and commissions. In a
majority of cases, these are activities in which the Bank executes its obligation to provide services at a given moment of time, in
which the customer simultaneously benefits from these services at once, the remuneration due is recognised by the Bank in
revenues on a one-off basis. An example may be the fee for issuing a card, for checking the account balance at an ATM, for
withdrawing cash at an ATM. In addition to one-off fees for banking operations, analogous to those described above for debit
cards, the Bank receives annual fees for the use of credit cards sold by the Bank together with separate services, including card
insurance. The Bank allocates remuneration to individual performance obligations and recognizes commissions throughout the
service provision period.
Commitments to grant loans and advance
The Bank charges a commission for its readiness to grant a loan or advance, which constitutes a separate remuneration for
commissions received from the loans at the moment of their commissioning, such as preparation commissions. Despite the
provision of the service over time, the Bank recognizes the revenue on account of the commission at the moment of the decision
regarding the commissioning of the loan, because at the moment of collecting the provision it is not possible to estimate the period
by which the due remuneration should be spread.
Investment brokerage and asset management
The Bank acts as a broker in the sale of participation units of investment funds for BNP Paribas Towarzystwo Funduszy
Inwestycyjnych S.A. ("TFI"), and receives a part of the commission charged for sales from customers. The Bank recognizes
revenue monthly based on the sales volume for a given month. In addition, the Bank receives variable remuneration from TFI as
part of the commission for the management of assets created as a result of the sale of investment fund participation units, which
TFI collects from clients. The Bank's remuneration depends on the valuation of assets in the portfolio under management. The
Bank recognizes revenue at the end of the month based on its own estimates in the area of valuation of assets under management,
which do not imply a potential significant reversal of revenue when settling revenues from TFI.
Insurance brokerage
The Bank, acting as an agent in the sale of insurance for an insurance company, is entitled to receive remuneration in the form of
a commission and additional remuneration, which the Bank recognizes on a quarterly basis based on the periodic results of the
insurance sale volume in an amount that will not be subject to significant reversal in the future, in accordance with IFRS 15.
Recognition of bancassurance income and expenses
Direct relation of a bancassurance product and financial instrument occurs in particular if at least one of the following conditions is
met: the offered financial instrument is always accompanied by the bancassurance product, or the bancassurance product is
offered only accompanied by the financial instrument, i.e. the Bank does not offer any bancassurance products with identical legal
form, terms and economic contents without the accompanying financial instrument.
Recognition of bancassurance income for related transactions
For related transactions including bancassurance products and financial instruments, remuneration from sales of the
bancassurance products constitute an integral part of the fee for the offered financial instrument.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Fee for bancassurance products offered in related transactions with financial instruments measured at amortised cost is accounted
for using the effective interest rate method and recognised in interest income for one-off premium or in commission income on a
monthly basis for a monthly premium.
Fee for the brokerage services, whose value is determined based on their economic contents, is recognised in commission income
upon sale or renewal (if the renewal is significant) of a bancassurance product.
Recognition of bancassurance expenses for related transactions
Expenses directly related to the sale of bancassurance product are settled in accordance with the matching principle as an element
of amortised cost of a financial instrument if the total income related to the sale of the product is settled with the effective interest
rate method or, respectively, proportionally to the classification of the income as recognised within amortised cost calculation and
that recognised on a one-off basis or over time as the fee for the agency services, if such classification has been introduced.
Recognition of bancassurance income and expenses for transactions not classified as related
If a financial instrument and a bancassurance product are sold in two separate transactions, the Bank’s fee for the sale of the
bancassurance product is recognised separately from the fee for the financial instrument.
Fee for the sale of bancassurance products that do not require the Bank to provide any post-sale services is recognised as income
as at the effective/renewal date of the relevant insurance policy. The related income is recognised under commission income.
Fee for the services provided by the Bank over the whole life of a bancassurance product is deferred and recognised as income
based on the percentage of completion of the provided services. Application of the percentage of completion method as at the
balance sheet date is limited to cases when a result of a service transaction can be reliably estimated.
If the Bank is unable to precisely determine the number of activities performed within a given time range or a returns level, income
from services or activities performed in relation to a bancassurance product offered by the Bank is recognised on a straight-line
basis over the lifetime of the product, unless there is evidence that another method would be more representative of the stage of
completion.
2.8. Dividend income
Dividend income is recognised in the statement of profit or loss once the Bank’s right to dividends has been determined.
2.9. Net trading income
Net trading income includes all income and expenses resulting from the change in the fair value of financial assets and liabilities
classified as measured at fair value through profit or loss, and interest income and interest expenses on derivatives, except
derivative instruments in hedge accounting.
This item also includes gains and losses on the translation of assets and liabilities denominated in foreign currencies
(revaluations).
2.10. Result on investment activities
The result on investment activities includes income and expenses from impairment of investments in subsidiaries, income and
expenses on financial assets classified as measured at fair value through other comprehensive income and income and expenses
on loans and advances to customers measured at fair value through profit or loss, except for the interest.
2.11. Result from derecognition of financial assets measured at amortized
cost due to material modification
Derecognition of financial instruments measured at amortized cost applies to cases of material modification (for a description of
the identification and recognition of material modifications, see Section 2.15 Classification and Measurement of Financial Assets
and Liabilities, paragraph entitled "Modifications to Financial Assets").
2.12. Result from legal risk related to foreign currency loans
This item includes the result of legal risks related to foreign currency loans. For a description of the accounting policy and
methodology for calculating the impact of this risk, see Note 53 Litigation, claims and administrative proceedings.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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2.13. Other operating income and expenses
In item Other operating income and expenses the Bank presents items that are not directly related to the core operating activities
of the entity.
The Bank includes in abovementioned item mainly: result on sale and liquidation of fixed assets, compensations received and
paid, revenue and expenses arising from other services not related to the core business of the Bank, income and expenses related
to provisions for litigation, excluding litigation related to mortgage loans in convertible currencies.
Other operating income also includes income from contracts with customers for intermediation in the sale of products and services
offered by other entities (including entities belonging to the Bank's Group) or the reinvoicing of costs incurred by the Bank to other
entities (in this case, due to acting as an agent, the Bank presents net income).
2.14. Income tax expense
Charge on gross financial profit/loss includes current tax payable and debit/credit arising from a value of change of the deferred
tax asset/liability.
Current tax liabilities and receivables for the current and prior periods are measured at projected amounts payable to tax authorities
(reimbursable) using tax rates and regulations valid in law or in fact as at the end of the reporting period.
2.15. Bank tax
Tax on certain financial institutions ("bank tax") is a property tax presented in the Profit and Loss presentation the item "Tax on
financial institutions" (it is not an income tax). In accordance with the Act of 15 January 2016 on tax on certain financial institutions
(consolidated text - OJ 2023, item 623), taxpayers include domestic banks and their tax base is the surplus of the total value of
the Bank's assets resulting from the statement of turnover and balances, established on the last day of the month on the basis of
entries in the general ledger accounts, over the amount of PLN 4 billion. The bank tax amounts to 0.0366% of the tax base per
month.
2.16. Classification and measurement of financial assets and liabilities
Classification and measurement of financial assets
In accordance with IFRS 9, financial assets are qualified to the following categories of measurement at the moment of their initial
recognition:
● financial assets measured at amortised cost,
● financial assets measured at fair value through other comprehensive income,
● financial assets measured at fair value through profit or loss.
The classification of financial assets in accordance with IFRS 9 depends on:
● business model relating to financial asset management, and
● the characteristics of contractual cash flows, i.e., whether contractual cash flows represent solely payments of principal and
interest ("SPPI").
Irrespective of the above, there is an irrevocable option at the moment of initial recognition of the financial asset to classify it as
measured at fair value through profit or loss (if there was no such possibility, the asset would be classified as measured at amortised
cost or at fair value through other comprehensive income), if such approach leads to the more relevant information eliminating or
significantly reducing the inconsistency in the measurement or recognition of assets or liabilities or related gains and losses. The
Bank did not designate any financial assets to be measured at fair value through profit or loss at the moment of their initial
recognition.
Recognition of the impact of legal risk resulting from legal proceedings concerning CHF mortgage loans
In terms of recognizing the impact of legal risk resulting from legal proceedings concerning CHF mortgage loans, the Bank applied
the provisions of IFRS 9 paragraph B.5.4.6 and recognised the impact of this legal risk as an adjustment to the gross carrying
amount of the CHF loan portfolio. In accordance with the standard, when an entity changes the estimates of payments or receipts
(excluding immaterial modifications and changes in the estimates of expected credit losses), it adjusts the gross carrying amount
of a financial asset or the amortised cost of a financial liability (or group of financial instruments) so that this value reflects the
actual and revised estimated cash flows resulting from the contract. The allocation of the impact of legal risk resulting from legal
proceedings concerning CHF mortgage loans between active and repaid loans is made based on observed lawsuits received.
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For active loans, the approach results in recognising the estimated impact of legal risk as an adjustment to the gross carrying
amount of loans. For repaid loans as well as when the estimated inflow exceeds the gross carrying amount of the loan, the provision
is presented in accordance with IAS 37.
Investments in equity instruments
Investments in equity instruments are measured at fair value through profit or loss. At initial recognition, an irrevocable option to
recognize them in other comprehensive income may be made regarding the recognition of subsequent changes in the fair value
of an investment in an equity instrument that is not held for trading or a contingent consideration recognised by the Bank as a
business combination in accordance with IFRS 3.
If the option to measure the instrument at fair value through other comprehensive income is exercised, only dividends resulting
from this investment are recognised in the statement of profit or loss. Profit or loss resulting from the measurement in other
comprehensive income are not reclassified to the statement of profit or loss.
In the case of equity investments, the Bank did not use the option of fair value measurement through other comprehensive income.
Business models
The Bank classifies its financial assets to three business models, taking into account the purpose of maintaining a financial
instrument:
Model 1: Receiving contractual cash flows.
Under Model 1, the main business goal is to collect contractual cash flows from the acquired or originated financial assets.
In order to determine whether cash flows will be realized through the collection of contractual cash flows, the Bank analyzes the
frequency, volume and period of past sales of financial assets, the reasons for these sales and expectations regarding future sales.
The sale of a financial asset due to the occurrence of any of the following circumstances does not result in a change in the business
model:
● sale of a financial asset due to an increase in credit risk,,
● sale of a financial asset takes place close to its maturity date.
Selling a financial asset due to any of the following circumstances does not result in a change in the business model, provided that
the sales are infrequent or their values are not significant:
● sale of a financial asset for the purpose of managing concentration risk,
● sale of a financial asset is forced by a third party (e.g. a regulator).
Model 2: Receiving contractual cash flows and sale of financial assets.
Under Model 2, both receiving contractual cash flows and sale of the acquired or originated financial assets are integral elements
of the portfolio's business objective.
Model 3: Other financial assets not classified to Model 1 nor Model 2
In a situation when specific groups of financial assets were not acquired or originated under Model 1 and Model 2, they should be
classified as Model 3. Most often, Model 3 refers to a strategy that assumes the realization of cash flows from the sale of financial
assets or portfolios that are managed based on their fair value.
Assets acquired or originated with impairment identified (POCI assets)
In addition, the Bank distinguishes categories of assets acquired or granted with credit impairment. POCI assets are financial
assets measured at amortised cost, which are impaired at the moment of initial recognition.
At the moment of initial recognition, POCI assets are recognised at their fair value. After initial recognition, POCI assets are
measured at amortised cost using the effective interest rate adjusted for credit risk to determine the amortised cost of the financial
asset component and interest income generated by these assets - the CEIR rate. In the case of POCI exposures, the change in
expected credit losses - over the entire lifetime - compared to those estimated at the date of their initial recognition is recognised
in statement of profit or loss. Financial assets that were classified as POCI at the moment of initial recognition should be treated
as POCI in every subsequent period until they are derecognised from the Bank’s statement of financial position.
SPPI test
For the purpose of classification and subsequent measurement of financial assets, the Bank verifies whether the cash flows from
a given instrument constitute solely the payment of principal and interest calculated on the principal.
For the needs of the assessment of cash flow characteristics, the principal is defined as the fair value of the financial asset at the
moment of initial recognition. Interests are defined as the reflection of the time value of money and credit risk related to the unpaid
part of the principal and other risks and costs associated with the standard loan agreement (e.g. liquidity risk or administrative
costs) and margin.
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When assessing whether contractual cash flows constitute solely repayments of the principal and interest, the Bank analyses the
cash flows of the instrument resulting from the contract, i.e. whether the contract contains any provisions that could change the
date of contractual payments or their amount in such a way that, in economic terms, they will not constitute solely repayments of
the principal and interest on the unpaid principal part.
A financial asset is measured at amortised cost if both of the following conditions are met:
● an asset is held by the Bank in accordance with the business model whose purpose is to maintain assets to collect contractual
cash flows,
● contractual terms of the financial asset represent contractual cash flows that are solely payment of principal and interest.
A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:
● an asset is held by the Bank in accordance with the business model, which aims to both receive contractual cash flows and
sell assets,
● the contractual terms of the financial asset represent contractual cash flows that are solely payment of principal and interest.
Other financial assets are measured at fair value through profit or loss.
Modification of financial assets
If the terms of a financial asset agreement change, the Bank assesses whether the cash flows generated by the modified asset
differ significantly from those generated by this asset before the terms of its agreement are modified. If a significant difference is
identified, the original financial asset is derecognised from the statement of financial position, and the modified financial asset is
recognised as a "new" financial asset, which is recognised in its fair value and the new effective interest rate applied to the new
asset is calculated. Income or expenses arising as of the date of determination of the effects of a material modification are
recognized in the income statement under Result from derecognition of financial assets measured at amortized cost due to a
material modification.
If the cash flows generated by the modified asset do not differ significantly from the original cash flows, the modification does not
result in derecognition of the financial asset from the statement of financial position. In such case, the Bank performs recalculation
of the gross book value of the financial asset using modified contractual cashflows discounted using original effective interest rate,
and the result arising from the immaterial modification is recognized in interest income.
The assessment of whether a given modification of financial assets is significant depends on the fulfilment of qualitative and
quantitative criteria.
If there is evidence that the modified financial asset is initially impaired due to credit risk, it is necessary to calculate the effective
interest rate adjusted for the credit risk of that financial asset.
Impairment of financial assets
The requirements of IFRS 9 relating to impairment are based on the model of expected credit loss.
The Bank applies a three-step approach to the measurement of expected credit losses from financial instruments measured at
amortised cost or at fair value through other comprehensive income, for which no impairment loss was recognised as at the
moment of initial recognition.
As a result of changes in the credit quality since the initial recognition, financial assets are transferred between the following three
stages:
● Stage 1: An allowance due to expected credit losses in 12-month horizon
If credit risk did not increase significantly from the date of the initial recognition, and the impairment of the loan was not identified
from the moment of its granting, the Bank recognizes an allowance for the expected credit loss related to the probability of default
within the next 12 months. Interest income on such assets is recognised based on the balance sheet amount (amortised cost
before the adjustment for impairment allowance) using the effective interest rate.
● Stage 2: An allowance due to expected credit losses for the entire lifetime – significant increase in the credit risk since the
moment of initial recognition and no impairment of a financial asset identified.
In the case of an exposure for which credit risk has increased significantly since the moment of its initial recognition, but no
impairment of the financial asset was identified, an impairment allowance is created for the expected credit loss for the entire
financing period. Interest income on such assets is recognised based on the gross balance sheet amount (amortised cost before
the adjustment for impairment allowance) using the effective interest rate.
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● Stage 3: An allowance due to expected credit losses for the entire lifetime – impairment of a financial asset
Financial assets are subject to impairment due to the credit risk resulting from an event or events that occurred after the initial
recognition of a given asset. For financial assets, for which an impairment was identified, an allowance is created for the expected
credit loss for the entire financing period, while interest income is recognised based on the net balance sheet value (including the
impairment allowance) using the effective interest rate.
At each balance sheet date, the Bank assesses whether there has been a significant increase in credit risk for financial assets
since the moment of their initial recognition, by comparing the risk of loan default during the expected financing period as at the
balance sheet date and the initial recognition date, using, among others, the internal credit risk assessment system, external credit
ratings, information on delay in repayments and information from internal credit risk monitoring systems, such as warning letters
and information about restructuring.
The Bank assesses whether the credit risk has increased significantly on the basis of individual and group assessment. In order
to perform an impairment calculation on a group basis, financial assets are divided into homogeneous product groups based on
common credit risk characteristics, taking into account the type of instrument, credit risk rating, initial recognition date, remaining
maturity, industry branch, geographical location of the borrower and other relevant factors.
The value of expected credit loss is measured as the current value of all cash flow shortages in the expected life of a financial
asset weighted with probability, and discounted using the effective interest rate. The shortfall in cash flows is the difference between
all contractual cash flows due to the Bank and all cash flows that the Bank expects to collect. The value of the expected credit loss
is recognised in the statement of profit or loss in the result on allowances related to the expected credit losses on financial assets
and provisions for contingent liabilities.
The Bank takes into account historical data on credit losses and adjusts them to current observable data. In addition, the Bank
uses reasonable and justified forecasts of the future economic situation, including its own judgment based on experience, with the
purpose of estimating the expected credit losses. IFRS 9 introduces an application of macroeconomic factors to the calculation of
expected credit losses on financial assets. These factors include: unemployment rate, interest rates, gross domestic product,
inflation, commercial property prices, exchange rates, stock indices, and wage rates. IFRS 9 also requires an assessment of both
the current and the forecasted direction of the economic cycles. The inclusion of forecast information in the calculation of expected
credit losses on financial assets increases the level of judgement to what extent these macroeconomic factors will affect the
expected credit losses. The methodology and assumptions, including all forecasts of the future economic situation, are regularly
monitored.
If in the subsequent period the allowance for expected credit losses decreases, and the decrease can be objectively related to an
event occurring after the impairment was recognised, then the previously recognised impairment allowance is reversed by adjusting
the allowance for expected credit losses. The amount of the reversed impairment allowance is recognised in the statement of profit
or loss.
For debt instruments measured at fair value through other comprehensive income, the measurement of the expected credit loss
is based on a three-step approach, as in the case of financial assets measured at amortised cost. The Bank recognizes the amount
of the expected credit losses in the statement of profit or loss, including the corresponding value recognised in other comprehensive
income, without reducing the balance sheet amount of assets (i.e. their fair value) in the statement of financial position.
Classification and measurement of financial liabilities
Financial liabilities as at the date of their acquisition or establishment are classified into the following categories:
● financial liabilities measured at fair value through profit or loss,
● other financial liabilities (measured at amortised cost).
Financial instruments – other than liabilities measured at fair value through profit or loss – are measured after initial recognition at
amortised cost using the effective interest rate. If a cash flow schedule cannot be determined for a given financial liability and
therefore the effective interest rate cannot be reliably estimated, such liability is measured at amount due.
Compensation
Financial assets and liabilities are compensated and presented in the statement of financial position at net amount, if a valid and
exercisable netting-off right occurs and the Bank intends to settle a financial asset and a financial liability net or simultaneously
settle the amount due.
Securitization
On 28 March 2024, the Bank entered into an agreement with the International Finance Corporation (‘IFC’, ‘Investor’) for a synthetic
securitisation transaction executed on a portfolio of corporate loans/loans with a total value of PLN 2,180,097 thousand as at 31
December 2023. The main purpose of the transaction is to release capital that the Bank will use to finance climate projects (climate
change mitigation projects focusing mainly on renewable energy, energy efficiency and green project financing).
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As part of the transaction, the Bank transferred a significant part of the credit risk from the selected securitised portfolio to the
Investor. The securitised selected loan portfolio remains on the Bank's books.
The Bank analysed the transaction and concluded that, in light of the provisions of IFRS 9, the contractual terms of the securitisation
do not meet the requirements for derecognising the securitised assets from the Bank’s financial statements.
The securitization transaction is described in Note 43 Securitization.
Repo and sell buy back transactions
Securities sold under repo and sell buy back transactions are not excluded from the statement of financial position. Liabilities to
counterparties are recognised as financial liabilities under "Liabilities arising from securities sold under repo and sell buy back
transactions". Securities purchased under reverse repo and buy sell back transactions are recognised under “Receivables arising
from securities purchased under reverse repo and buy sell back transactions”. The difference between the sale and repurchase
price is treated as interest and calculated using the effective interest method over the agreement term.
Principles for recognition and derecognition of financial assets and liabilities from the statement of financial position
The Bank recognizes a financial asset or liability when it becomes a party to the contract of such an instrument. Standardized
purchase and sale transactions of financial assets are recognised at the date of the transaction, which is the date when the Bank
is required to purchase or sell a given financial asset. Standardized transactions for the purchase or sale of financial assets are
transactions whose contractual terms require the delivery of an asset in the period resulting from the applicable regulations or
conventions adopted on a given market. Standardized purchase or sale transactions refer in particular to FX spot FX transactions,
the spot leg in FX swap transactions and securities purchase and sale transactions, where, normally, two business days pass
between the transaction date and the settlement date, except for repo transactions.
The Bank derecognizes a financial asset when:
● contractual rights to cash flows from a financial asset expire;
● the Bank transfers contractual rights to receive cash flows from a financial asset.
Transfer takes place:
● in a transaction in which the Bank transfers substantially all risk and all benefits associated with the financial asset component,
or:
● when the Bank retains contractual rights to receive cash flows from a financial asset, but assumes contractual obligation to
transfer cash flows from a financial asset to the entity outside the Bank.
2.17. Intangible assets
Intangible assets acquired in a separate transaction are initially measured at acquisition or development cost.
The Bank determines whether the useful life of intangible assets is defined or indefinite. Intangible assets with defined useful life
are amortised over their useful life and tested for impairment each time when an impairment trigger occurs, at least once a year.
The period and method of amortization for intangible assets with defined useful life are verified at the end of each financial year.
Changes in the expected useful life or the manner of consuming economic benefits arising from a given asset are recognised
through a change in the amortization period or method, respectively, and treated as changes in estimates. Amortization charges
on intangible assets with a defined useful life are recognised in the statement of profit or loss under “Amortization”.
An intangible asset created as a result of development works (or completion of the development stage of an internally conducted
project) shall be recognized if and only if the Bank can prove:
1) the possibility of completing the intangible asset so that it is suitable for use or sale from a technical point of view;
2) the intention to complete the intangible asset and to use or sell it;
3) the ability to use or sell the intangible asset;
4) the method of how the intangible asset will generate probable future economic benefits; among other things, the Bank can
prove the existence of the market for the given products generated by the intangible asset or for the intangible asset itself or,
if the intangible asset is to be used by the Bank, the utility of the intangible asset;
5) the availability of adequate technical, financial and other resources to complete the development and use or sell the intangible
asset;
6) the ability to reliably determine the expenditures incurred during the development work attributable to the intangible asset.
Intangible assets with indefinite useful life and those not used, are annually tested for impairment individually or on the level of
cash generating unit.
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Standard intangible assets (with defined useful life and those that are used) are subject to annual impairment tests.
Purchased software licenses are capitalized in the amount of costs incurred for the purchase of a given software and its adaptation
for use. Capitalized costs are amortised over an estimated useful life of the software. Expenses related to the maintenance of
computer programs are charged to expense in the period to which they relate.
Amortization of intangible assets is calculated using the straight-line method in order to spread out the initial asset value or its
amount revalued over the useful life, different for each intangible asset group:
●
licenses
12.5 – 50.0%
●
copyrights
20.0 – 50.0%
The useful lives of intangible assets are verified annually at the minimum, and adjusted if necessary.
Amortised intangible assets are tested for impairment in each case when events or circumstances indicate that their balance sheet
amount may be irrecoverable. In such cases, the balance sheet amount is immediately reduced to the recoverable amount if the
former exceeds the estimated level of the latter. The recoverable amount is equal to the fair value less the sell costs or the value
in use, whichever is higher.
2.18. Property, plant and equipment
Property, plant and equipment are recognised at the acquisition price or development costs less depreciation charges and
impairment allowance. The initial amount of fixed assets includes their acquisition price increased by all costs directly related to
their purchase and adaptation for use. Costs incurred after the date the fixed asset is transferred for utilization, such as costs of
maintenance and repair, are charged to profit or loss when incurred.
Upon acquisition, property, plant and equipment items are divided into components of material value to which separate useful life
may be assigned. Costs of overhauls are also a component.
Land is not depreciated. Depreciation of other fixed assets is calculated using the straight-line method in order to spread out the
initial asset value or its revalued amount less residual value over the useful life, different for each asset group:
●
buildings and leasehold improvements
2.5 – 20.0%
●
machines and equipment
10.0 – 20.0%
●
computer sets
20.0%
The residual value and useful lives of property, plant and equipment are verified annually at the minimum, and adjusted if
necessary.
Depreciated property, plant and equipment are tested for impairment at least annually, in each case when events or circumstances
indicate that their balance sheet amount may be irrecoverable. In such cases, the balance sheet amount is immediately reduced
to the recoverable amount if the former exceeds the estimated level of the latter. The recoverable amount is equal to the fair value
less costs to sell or the value in use, whichever is higher.
If the recoverable amount is lower than the current balance sheet amount of an asset, an impairment allowance is charged to the
statement of profit or loss.
Gain or loss from disposal of property, plant and equipment is determined by comparison of sales proceeds with their balance
sheet amount and recognised in the statement of profit or loss in other operating income or expenses.
2.19. Hedge accounting
The Bank selected the accounting policy in the area of hedge accounting and decided to continue applying the hedge accounting
principles in accordance with IAS 39 "Financial Instruments: Recognition and Measurement" until the end of works of the
International Reporting Standards Board on the guidelines for macro hedge accounting (Macro hedging).
Hedge accounting recognizes the compensation effects of changes in the fair value measurement of hedging and hedged items
affecting the statement of profit or loss. Pursuant to the adopted hedge accounting principles, the Bank designates certain
derivatives as hedges of fair value and future cash flows of certain assets, provided the criteria determined in IAS 39 are met.
Hedge accounting is used to account for hedging relationships if all of the following conditions are met:
● at the inception of the hedge there is a formal designation and documentation of the hedging relationship and the Bank’s risk
management objective and strategy for undertaking the hedge.
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The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and
how the Bank will assess the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s
fair value or cash flows attributable to the hedged risk;
● the hedge is expected to be highly effective in offsetting changes in fair value or cash flows attributable to the hedged risk,
consistently with the originally documented risk management strategy for that particular hedging relationship;
● for cash flow hedges, a forecast transaction that will be hedged must be highly probable and must present an exposure to
variations in cash flows that could ultimately affect profit or loss;
● the effectiveness of the hedge can be reliably measured, i.e. the fair value or cash flows of the hedged item that are attributable
to the hedged risk and the fair value of the hedging instrument can be reliably measured;
● the hedge is assessed on an ongoing basis and determined actually to have been highly effective throughout the financial
reporting periods for which the hedge was designated.
Fair value hedge
Changes in the fair value measurement of financial instruments designated as hedged items are charged to the statement of profit
or loss in the portion arising from the risk subject to hedge. The remaining portion of the change in the balance sheet amount is
booked in accordance with general principles applicable to the particular class of financial instruments.
Change in the fair value measurement of financial instruments designated as hedged items is presented in the statement of
financial position as Differences from hedge accounting in assets or liabilities.
Changes in the fair value measurement of derivatives designated as hedging instruments under hedge accounting are entirely
recognised in the statement of profit or loss under the same item as results of changes in the value of the hedged items, i.e. in the
Result on hedge accounting.
Cash flow hedge
The effective part of changes in the fair value of derivative instruments designated and qualified as cash flow hedges is recognised
in other comprehensive income. The profit or loss relating to the ineffective part is presented in the statement of profit or loss for
the current period.
Amounts recognised in other comprehensive income are included in revenues or costs of the same period in which the hedged
item will affect the statement of profit or loss.
If the hedging instrument expired or was sold, or when the hedge no longer meets the hedge accounting criteria, any accumulated
profits or losses recognized at this moment in other comprehensive income remain in other comprehensive income until the
forecast transaction is recognised in the statement of profit or loss. If the forecasted transaction is no longer considered probable,
total gains and losses recognised in other comprehensive income are immediately transferred to the statement of profit or loss.
2.20. Provisions
Provisions are created when the Bank is subject to an obligation (legal or constructive) resulting from past events and it is probable
that the fulfilment of such obligation will create a liability and where a reliable estimate of the amount of that liability can be made.
If the Bank expects reimbursement of the expenditure required to settle the provision (for example, through insurance contracts),
the reimbursement is recognised as a separate asset, but only when it is virtually certain that reimbursement will be received. The
costs relating to the provision are recognised in the statement of profit or loss less any reimbursement amount. If the impact of
time value of money is material, the provision is determined by discounting projected future cash flows to the present value with a
gross discount rate that reflects current market assessment of time value of money and a possible risk pertaining to a liability. An
increase in provision over time is recognised as interest expense.
A provision for restructuring costs is recognised when general provision recognition criteria are met, as well as detailed ones
regarding the occurrence of an obligation to recognize a provision for restructuring costs determined in IAS 37. In particular, the
constructive obligation to perform a restructuring procedure occurs only when the Bank has a detailed, formal restructuring plan
and has raised justified expectations of parties involved in the plan that the restructuring would be performed in the form of initiating
its implementation or announcing its key elements to these parties.
A detailed restructuring plan determines at least the operations involved or their part, the key locations to be included, the place of
employment, positions and approximate number of employees to be compensated in exchange for termination of their employment,
the amount of outlays to be incurred and the plan implementation deadline.
A restructuring provision includes only direct outlays arising from the restructuring, which:
● are an indispensable effect of the restructuring procedure and
● at the same time are not related to current operations of the entity.
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The restructuring provision does not cover costs such as:
● training of remaining employees or reassignment of employees;
● marketing, or
● investment in new distribution systems and networks.
Restructuring provision does not include future operating expenses.
The Bank creates provisions for legal proceedings when it acts as a defendant in in these proceedings and the plaintiff's claim is
monetary in nature (e.g., claims for payment/compensation), as well as for administrative proceedings in which the Bank is a
participant, which may result in the imposition of a fine on the Bank. Provisions are made for proceedings for which there is a
probability (risk) of an unfavorable outcome for the Bank.
2.21. Leases
Bank as a lessee
On the commencement date of the lease, the Bank recognizes the lease liability (liability to make lease payments) and the asset
that constitutes the right to use the subject of the lease for the duration of the leasing contract (right to use an asset).
In determining the lease term, the Bank considers all relevant facts and events creating economic incentives to exercise the option
to renew or not to exercise an option to terminate. The Bank reassesses the length of the lease term in case of a significant event
or a significant change in circumstances that affects the assessment made previous
For contracts with indefinite duration relating to the Bank's branch offices, the Bank has adopted a lease term consistent with the
period of depreciation of the unamortised investments made in these properties at the date of implementation of the standard, or
in the absence of such investments, a 3-year period, taking into account the significant costs associated with changing the location
of the branches during their operation.
The Bank applies the exemptions provided for in IFRS 16 and does not recognize the asset components due to the right of use in
the case of short-term leases and leases covering components of low-value assets. Short-term leases are defined as leases with
a period of no longer than 12 months as at the beginning date (including periods for which the lease can be extended, if it can be
assumed with reasonable assurance that the lessee will exercise that right) and do not include a call option. Low-value assets are
those which have a value of no more than EUR 5,000.
On the commencement date, the lessee measures the lease liability based on the current value of lease payments remaining to
be paid as at that date. Lease payments are discounted using the interest rate of the lease, if such a rate can be easily determined.
Otherwise, the lessee applies the marginal interest rate of the lessee. The lessee's marginal interest rate is the interest rate that
the lessee would have to pay to borrow the funds necessary to purchase a right-of-use asset of similar value for a similar term and
with similar collateral in a similar economic environment. The Bank determines the marginal interest rate for all contract types on
the basis of the average funding rate in the currency concerned.
The following elements are included in the measurement of leasing liabilities:
● fixed payments, less any lease incentives receivable,
● variable lease payments that depend on an index or a rate,
● amounts expected to be payable by the lessee under residual value guarantees,
● the exercise price of a purchase option if the lessee is reasonably certain to exercise that option,
● payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the
lease.
Variable fees, which do not depend on the index or rate and do not have a certain minimum level, are not included in the value of
the lease liability. These fees are recognised in the statement of profit or loss in the period when the event that causes their maturity
occurred.
On the commencement date, the lessee measures an asset due to the right to use at its cost. The cost of an asset due to the right
of use should include:
● the initial value of the lease liability,
● leasing payments made at the time or before the conclusion of the contract less any incentives received,
● all initial costs incurred by the lessee, and
● estimated costs of dismantling and removing the underlying asset, that must be incurred by the Bank in connection with the
asset included in the agreement in order to restore the place in which the asset is located or the asset itself to the conditions
required under the leasing contract.
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After the initial recognition, the right of use is reduced by depreciation and total impairment losses and adjusted in connection with
the revaluation of the lease liability due to changes in the lease, which do not require the recognition of a separate lease component.
Right of use assets are amortised on a straight-line basis over the shorter of two periods: the leasing period or the useful life of the
underlying asset, unless the Bank has sufficient certainty that it will obtain ownership before the end of the leasing period - then
the right to use is depreciated from the day of commencement until the end of the asset's useful life
Bank as a lessor
Lease contracts under which substantially all of the risks and rewards of ownership of the assets are transferred to the lessee are
classified as financial lease agreements. In the statement of financial position the value of receivables in the amount equal to the
net investment in the lease is recognised. The recognition of revenues from financial leasing contracts is performed in a manner
reflecting the constant periodic rate of return on the net investment in the lease made by the Bank under finance lease.
The Bank does not offer operating lease products, i.e. such products in which all risks and rewards incidental to ownership of the
assets are transferred to the lessee/
2.22. Financial guarantees
On initial recognition, a financial guarantee contract is measured at fair value.
Financial guarantees after initial recognition are measured at the higher value of:
● the amount of the impairment loss determined in accordance with the principles applicable to expected credit losses for assets
measured at amortised cost in accordance with IFRS 9,
● the amount initially recognised less the cumulative income recognised in accordance with the principles of IFRS 15.
For loan commitments and financial guarantee contracts, the date on which the Bank becomes a party to the irrevocable
commitment is considered as the date of initial recognition for the purpose of applying the impairment requirements.
2.23. Employee benefits
The Bank creates a provision for future liabilities due to retirement, disability and post-mortem benefits, unused annual holiday,
restructuring of employment and for incentive and retention programs. Provisions for retirement, disability and post-mortem benefits
are created using the actuarial method, as described in Note 3e and 11 hereof.
Employees of the Bank are entitled to the following benefits:
Retirement, disability and post-mortem benefits
Retirement benefits classified as post-employment defined benefit plans are available upon retirement for pensioners or disability
pensioners. The term of employment includes all previously completed periods of employment based on an employment contract.
Liabilities due to unused annual holiday
Provisions for unused holiday leave are calculated as the product of the daily basic salary and the number of outstanding leave
days as at the end of the reporting period, including surcharges for Social Insurance Institution (ZUS) benefits. Provisions for the
unused holiday leave are presented in the separate financial statements under “Other liabilities”.
Benefits arising from the variable remuneration program
On 9 December 2021, the Supervisory Board of BNP Paribas Bank Polska S.A. approved an amended Remuneration Policy for
persons with a material impact on the risk profile of BNP Paribas Bank Polska S.A. (hereinafter: the Policy). The changes were
related, among others, to the need to adjust the Policy to the provisions of the Regulation of the Minister of Finance, Funds and
Regional Policy of 8 June 2021 on the risk management system and internal control system and remuneration policy in banks.
Performance evaluation of individuals included in the program underlies the calculation of the variable remuneration Policy.
Under the current remuneration scheme, the variable remuneration is divided into:
● a non-deferred and deferred part and a part granted in the form of a financial instrument, which is the Bank's shares (settled
in accordance with IFRS 2)
● a remaining deferred part granted in cash (settled in accordance with IAS 19 "Employee benefits").
The right to variable remuneration in the form of Bank shares is granted by issuing subscription warrants in a number corresponding
to the number of shares granted, one warrant entitles to acquire one share. Payment of the variable remuneration expressed in
the form of Bank shares, i.e. acquisition of Bank shares through exercise of rights from subscription warrants, takes place after the
expiry of the retention period.
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The retention period is at least 5 years for Senior Management and a minimum of 4 years and a maximum of 5 years for staff other
than Senior Management. A maximum deferral period of 5 years is applied when Variable Remuneration is assigned in the amount
exceeding an amount considered as a particularly high amount. The deferred part of the variable remuneration is divided into equal
parts according to the number of years of the deferral period.
The cash payments under the programme are recognised in line with the projected unit credit method and settled over the vesting
period (i.e. both in the evaluation period understood as the year in service to which the benefit pertains and in the period of deferring
relevant portions of the benefit). The benefit value is recognised as a liability to employees in correspondence with the statement
of profit or loss.
Liabilities due to restructuring of employment
In connection with the process of collective redundancies for 2024-2026 at BNP Paribas Bank Polska S.A. under an agreement
signed in 2023, payments were made for severance payments to employees made redundant at the employer's initiative and to
employees covered by voluntary departure programmes.
Liabilities due to incentive – retention programs
The programmes have been completed by the reporting date, except for the deferred parts concerning individuals with significant
influence on the Bank's risk profile, in accordance with the Bank's policy in this respect.
2.24. Capital
Share capital
Registered share capital is disclosed at its nominal value, in accordance with the statute and the entry in the court register.
Own shares
If the Bank purchases its own shares, the amount paid reduces equity as treasury shares until their cancellation. Should these
shares be sold or re-allocated, the payment received is recognised in equity.
Supplementary capital from the sale of shares above their par value
The supplementary capital is created from the issue premium obtained from the issue of shares, reduced by the direct costs
incurred with the issue.
The costs directly related to the issue of new shares, after deduction of income tax, reduce the proceeds from the issue included
in the equity.
Other capital
Other capital: spare capital, reserve capital and general risk funds are created from profit allocations and are designated for
purposes specified in the statute or other legal regulations.
Other capital items
Other equity items are created as a result of:
● valuation of financial assets at fair value through other comprehensive income,
● actuarial profits and losses related to post-employment benefits,
● valuation of derivatives as part of cash flow hedge accounting with reference to the effective part of the hedge.
2.25. Issuance of AT1 Capital Bonds
In accordance with the provisions of IAS 32, the AT1 Capital Bonds were classified as an element of the Bank's equity. On 31
December 2024, the Polish Financial Supervision Authority approved the classification of the AT1 Capital Bonds to the Bank’s own
funds as Additional Tier 1 instruments.
2.26. Custody operations
BNP Paribas Bank Polska S.A. performs custody operations including maintaining securities accounts of its customers.
Assets managed under the custody services are not included in the present financial statements as they do not meet the definition
of Bank’s assets.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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2.27. Cash and cash equivalent
For the purpose of the statement of cash flows, cash and cash equivalents include items that mature within three months from
their acquisition date, including cash in hand and non-restricted cash at the Central Bank (current account), statutory reserve
account and receivables from other banks (including nostro accounts).
3. ESTIMATES AND JUDGEMENTS
The Bank makes judgements, estimates and assumptions that affect the values of assets and liabilities reported in the subsequent
period. Judgements, estimates and assumptions, which are reviewed on an ongoing basis, are made based on prior experience
and considering other factors, including expectations as to future events, which appear reasonable in specific circumstances.
a. Impairment of financial assets
The assessment of impairment of financial assets in accordance with IFRS 9 requires estimates and assumptions, especially in
the areas of estimates of the value and timing of future cash flows, the value of collaterals established, or the assessment of a
significant increase in credit risk.
The assessment of impairment in accordance with IFRS 9 covers financial assets measured at amortised cost and financial assets
measured at fair value through other comprehensive income as well as contingent liabilities. The recognition of expected credit
losses depends on the change in the level of credit risk recorded since the moment of initial recognition of the financial asset.
Financial assets are subject to the assessment as to whether there are any events of default.
The requirements of IFRS 9 relating to impairment are based on the model of expected credit loss.
Financial instruments subject to the assessment in terms of impairment are classified into one of three stages based on the
assessment of changes in credit quality observed since initial recognition:
● Stage 1: An allowance due to expected credit losses in 12-month horizon
If the credit risk did not increase significantly from the date of the initial recognition, and the event of default did not occur from the
moment of granting the financial instrument, the Bank recognizes an allowance for the expected credit loss within the next 12-
month horizon.
● Stage 2: An allowance due to expected credit losses for the entire lifetime – no event of default identified
In the case of financial instruments, whose credit risk has increased significantly since the moment of their initial recognition, but
no event of default occurred, an impairment allowance is created for the entire remaining financing period, considering the
probability of the occurrence of the event of default.
● Stage 3: An allowance due to expected credit losses for the entire lifetime – event of default
In the case of financial instruments for which the event of default occurred, an allowance for the expected credit loss is created for
the entire remaining financing period.
Criteria for stage classification
In order to assess whether there has been a significant increase in credit risk since the initial recognition of the financial instrument
(Stage 2), the Bank compares the risk of default during the expected period of financing granted as at the balance sheet date and
the date of initial recognition.
The assessment consists in verifying whether the ratio of the cumulative PD as of the report date determined for the period from
the report date to the maturity date and the cumulative PD as of the initial recognition date determined for the period from the
report date to the maturity date exceeds the relative threshold for the change in the PD lifetime parameter. Exceeding the threshold
results in classification into Stage 2. PD lifetime weighted by the probability of occurrence of individual macroeconomic scenarios
is used for comparison.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The threshold amount is set at the level of homogeneous portfolios based on an analysis of loss levels for historical data. The
analysis is designed to ensure high discriminatory power of the introduced allocation and its results are subject to verification for
intuitiveness. The thresholds adopted at the Bank range from 1.8 to 2.7 times PD lifetime growth relative to initial recognition,
depending on the segment.
An important element of the allowance estimation process, affecting both the Stage classification and the parameters used in the
allowance estimation process, is the internal credit risk rating system. The rating reflects an assessment of asset quality and key
related risks, including an assessment of refinancing risk.
Refinancing risk is assessed periodically by the Bank, both in the process of granting the financing and as part of cyclical monitoring
performed throughout the financing period.
In the commercial real estate segment, among other things, the quality of the asset is examined, including: attractiveness of the
location, age of the facility, occupancy level, terms and duration of leases, value of the property, LTV (Loan to Value) and DSCR
(Debt Service Coverage Ratio) parameters.
In addition, in order to assess a significant increase in credit risk, the Bank uses e.g.: information on delay in repayments (over 30
days of delay) and information from internal credit risk monitoring systems, such as warning letters and information about
restructuring.
For exposures classified as Stage 2, if in subsequent periods the credit quality of the financial instrument improves and previous
conclusions regarding a significant increase in credit risk since initial recognition are reversed, the exposure is reclassified from
Stage 2 to Stage 1 and the allowance for expected credit losses for these financial instruments is calculated over a 12-month
horizon.
For the purpose of identifying exposures eligible for Stage 3, the Bank uses a single definition of defaulted exposures and a
definition of impaired exposures, and classification is based on the principles of the default triggers.
The principal event of default is a delay in repayment of more than 90 days (or more than 30 days for exposures with granted
facilities) of a material amount of a past due credit obligation. In addition, other indications are taken into account, including in
particular:
● restructuring,
● granting of a facility where the exposure is granted a facility or restructured,
● granting of a facility without significant economic loss where at least one of the following conditions is met:
o a large lump sum payment towards the end of the repayment schedule;
o irregular repayment schedule, with significantly lower payments at the beginning of the repayment schedule;
o significant grace period at the beginning of the repayment schedule;
o exposures to an obligor that are subject to distress restructuring on more than one occasion.
● suspicion of fraud (including economic crime or any other criminal offence related to the credit exposure),
● information has been received about the submission of an application for restructuring proceedings within the meaning of the
Act on Restructuring Law,
● filing of an application for commencing enforcement proceedings by the Bank or becoming aware of the fact that enforcement
proceedings against the debtor are being conducted in the amount which, in the opinion of the Bank, may result in the loss of
creditworthiness,
● becoming aware of the fact of filing of an application for declaring the debtor bankrupt (liquidation, consumer), putting the
debtor into liquidation, dissolution or cancellation of the company, appointment of a curator, appointment of a receiver over
the debtor's activity,
● filing of an application for bankruptcy proceedings, a declaration of bankruptcy or becoming aware of the dismissal of the
bankruptcy application due to the fact that the debtor's assets are insufficient or sufficient only to meet the costs of the
bankruptcy proceedings,
● termination of the credit agreement,
● submission by the Bank of an application to initiate enforcement proceedings against the customer,
● granting of a public moratorium under article 31fa of the Act of 2 March 2020, on special solutions related to the prevention,
prevention and control of Covid-19, other infectious diseases and emergencies caused by them,
● financial difficulties identified during the customer monitoring/review process or on the basis of information obtained from the
customer in the course of other activities,
● significant deterioration in customer rating.
In determining the materiality level of a past due credit obligation, the Bank takes into account the thresholds contained in the
"Regulation of the Minister of Finance, Investment and Development dated 3 October 2019 on the materiality level of a past due
credit obligation".
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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A past due credit commitment is considered material when both materiality thresholds are exceeded together:
1) the amount of past due liabilities exceeds PLN 400 for retail exposures or PLN 2,000 for non-retail exposures, and
2) the share of past due liabilities in the exposure is greater than 1%.
Accordingly, the calculation of the number of overdue days for the purpose of determining a default event starts once both of the
aforementioned thresholds are exceeded.
While reclassifying the exposure from Stage 3 to Stage 2 or Stage 1, the Bank considers quarantine period, according to which a
credit exposure with recognised objective trigger of impairment may only be reclassified into Stage 2 or Stage 1 if the customer
has been servicing the receivable on time for a specified number of months. The required quarantine period differs depending on
the customer type. Its length is determined by the Bank on the basis of historical observations which allow for determining the
period after which the probability of default decreases to the level comparable to that of other exposures classified to the portfolio
with no indications of impairment.
With regard to the criteria for assignment to Stages, the Bank implemented an indication based on the assessment of the relative
change in the PD lifetime parameter.
Due to the ongoing war in Ukraine and the economic sanctions issued against Russia and Belarus, the Bank analysed credit
exposures directly related to these countries and, based on this, did not identify any significant exposures both in the portfolio of
business and retail clients. At the same time, the Bank monitors the situation of customers on an ongoing basis with a view to
securing the credit portfolio by adequately reflecting the level of risk on these customers in the amount of allowances. The Bank
has identified institutional customers who are vulnerable to the effects of the situation in Ukraine, including, in particular, customers
whose business is linked to the economies of the above countries (and thus may be exposed to the effects of war and imposed
sanctions) and whose business is vulnerable to the embargo on Russian gas. These customers accounted for 286,246 thousand
of exposure as of 31 December 2024 (as at 31 December 2023, the balance of exposure to these customers was PLN 651,157
thousand), and were classified in Stage 2, as customers for whom there was a significant increase in credit risk. The total allowance
related to these customers amounted PLN 7,808 thousand (as at 31 December 2023, the balance of allowance related to the
customers reclassified on this account was PLN 38,007 thousand). A significant impact on the decrease in balances on this group
of customers was the reclassification to Stage 3 of a single capital group with significant exposure.
With regard to the remaining segments, in the process of assigning Stages, the Bank took into account the increased risk
associated with customers with the greatest exposure to turbulence in the economic environment by transferring these exposures
to Stage 2. The basis for identifying sensitive customers was:
● for the portfolio of loans secured by real estate in PLN, results of surveys conducted among customers using credit holidays,
● for the segment of other retail customers, available indicators that are indicative of the level of debt burden and the timeliness
of servicing obligations with other institutions,
● for the portfolio of micro-entrepreneurs, the level of the customer's rating or, for a selected group of customers, borrowing to
a degree that threatened the proper servicing of the credit/loan.
As of December 31, 2024, these customers amounted to 628,057 thousand. PLN of commitment, while as at December 31, 2023,
the balance amounted to PLN 1,276,708 thousand. zloty. This decline is largely related to good loan servicing by customers,
including customers with loans secured by real estate in PLN, who stopped using credit holidays in 2024. In addition to the reported
items in Stage 2, for the portfolio of loans secured by real estate in PLN, the Bank applies an additional parameter adjustment for
vulnerable customers using credit holidays (see the table on Post Model Adjustments applied for details).
Description of the methods used to determine the allowance for expected credit losses
The individual valuation is performed by the Bank for individually significant financial assets, for which the event of default was
identified. It consists in the individual determination of the allowance for expected credit losses. During the individual valuation, the
Bank determines expected future cash flows and impairment allowance is calculated as the difference between the present value
(balance sheet amount) of a financial asset which is individually significant and the value of future cash flows generated by that
asset, discounted using the effective interest method. Cash flows from collateral are taken into account for purposes of estimating
future cash flows.
The following assets are measured collectively:
● classified as individually insignificant;
● classified as individually significant, for which the event of default was not identified.
The amount of collective impairment allowances is determined with the application of statistical methods for defined exposure
portfolios which are homogenous from the perspective of credit risk. Homogeneous exposure portfolios are defined based on,
among others, customer segment and type of credit products.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The criteria applied by the Bank to define homogeneous portfolios are aimed at grouping exposures so that the credit risk profile
is reflected as accurately as practicable and, consequently, so as to estimate the level of allowances for the expected credit losses
on financial assets as objectively and adequately as possible. The amount of the allowance for expected credit losses in the
collective method is determined under four macroeconomic scenarios. The final value of the allowance is determined as the
average of these four calculations weighted by the probability of occurrence of a given scenario. The weight of the base scenario
is 50%, the weights of the negative and the severe scenarios are estimated based on the ratio of the current projected loss to the
long-term average for the segment, and the weight of the positive scenario is derived from the weights of the negative and the
severe scenarios. As of 31 December 2024, the weight of the severe scenario ranged from 0% to 5.84%, depending on the
portfolio, and the pessimistic from 0% to 23.37%.
In the process of calculating the amount of allowances, the following parameters are used:
1) probability of default
The amount of the parameter for individual exposures is estimated using a model based on Markov chains. For its estimation,
historical matrices of migration of exposures between risk classes are used. Risk classes are determined based on internal ratings.
Migrations are determined within homogeneous portfolios defined by customer segment and product type.
The parameter values resulting from the above model are through-the-cycle. In order to ensure the point-in-time nature required
by the IFRS9 standard, they are subsequently adjusted based on current forecasts of the macroeconomic environment. The
adjustment made is based on econometric models built for individual segments based on time series. If it is not possible to build a
model for a particular segment, a simplification based on the Box-Cox transformation is applied.
2) loss given default (LGD) ratio
The amount of the parameter for individual exposures is determined based on the probability of occurrence of individual recovery
paths (return to regular repayments, full repayment of the obligation, commencement of hard recovery) and the expected levels of
loss if a given path occurs. The probabilities of occurrence of individual paths are determined based on a Markov chain-based
model and estimation based on historical data.
Loss levels are determined based on historically observed recoveries. They take into account recoveries linked to collateral
allocated to a given exposure, repayments not linked to collateral, and recoveries expected from the sale of receivables.
Assignment of specific components is based on customer segment, product type, exposure characteristics, current number of days
in default, contract status and number of months since the commencement of hard recovery. The parameters for recovery from
the collateral are based on the customer segment, the type of collateral and the number of months since the commencement of
hard collection.
The parameter values resulting from the above model are through-the-cycle. In order to ensure the point-in-time nature required
by the IFRS9 standard, they are adjusted based on current forecasts of the macroeconomic environment. The adjustment made
is based on econometric models built for individual segments, based on time series. If it is not possible to build a model for a
particular segment, a simplification based on the Box-Cox transformation is applied - this does not apply to portfolios where expert
values are used for parameter estimation due to the lack of sufficient historical observations.
3) the conversion factor of granted off-balance sheet liabilities to on-balance sheet receivables (CCF - credit conversion factor)
The amount of the parameter is determined based on average observed historical values. The parameter is estimated within
homogeneous portfolios defined by customer segment and product type. For segments where there are not enough observations
to determine the parameter, expert values are adopted.
For the CCF parameter, the Bank demonstrated its lack of dependence on macroeconomic factors based on historical data.
4) prepayment factor (PPF)
The amount of the parameter is determined based on the prepayment curve assigning dependence on the months of existence of
the credit exposure. The prepayment curve is estimated based on historical data by customer segment and product type. When
calculating the expected credit loss, prepayment factor adjusts the balance sheet exposure resulting from the loan repayment
schedule.
For the PPF parameter, the Bank demonstrated its lack of dependence on macroeconomic factors based on historical data.
5) expected life of the loan (BRL – behavioural lifetime).
For exposures for which there is no contractual existence life-time, the behavioural lifetime of the loan is estimated. This value is
assigned by customer segment and credit product type. The estimation of the behavioural life of a loan is based on building a
profile of historically observed existence length in an exposure of a given type and fitting a logistic regression function to it. This
function is then used to estimate the final value in a given segment.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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In 2024, the Bank made one significant change to the process of calculating allowances:
● With regard to all customer segments, the Bank made a change in the estimation process of the CCF parameter. The change
was aimed at adapting to the requirements of Recommendation R and was based on the inclusion in the estimation process
of exposures with a negative realisation of the conversion of off-balance sheet liabilities into balance sheet exposures. This
change, together with the updating of the parameter with the latest observations, resulted in the release of allowances of PLN
28,000 thousand.
In 2024, the level of allowances was impacted by updating the level of allowance in the form of Post Model Adjustments held in
connection with the risk of customers who are particularly sensitive to changes in the economic environment and parameter
adjustments for sensitive customers using credit holidays - the Bank released a net PLN 37,090 thousand in allowances created
for this purpose (including a release of PLN 5,155 thousand on exposures of customers who are particularly sensitive to changes
in the economic environment and a PLN 31,935 thousand released in the form of parameter adjustments for sensitive customers
using credit holidays).
In addition, in 2024 the Bank recognised additional allowances for risk factors identified in the loan portfolio, including:
● 51,258 thousand PLN in connection with the risk of the portfolio of farmers whose crops suffered as a result of unfavorable
weather phenomena (including hailstorms and summer droughts). As part of the portfolio review, the Group identified the
types of crops that are particularly sensitive to extreme weather phenomena. For such a selected pool of borrowers, analyzes
of debt servicing capacity were carried out, assuming increased losses related to weather phenomena. The analyzes were
the basis for recording the provisions in question.
● 31,500 thousand PLN in connection with risk factors identified in the commercial real estate segment, the Group performed
in-depth analyzes of customers from this segment. For the pool of customers identified as particularly sensitive, the Group
has designated provisions based on assumed increases in the probability of default (PD) and decreases in the value of
collateral.
● 72,800 thousand PLN provisions for clients operating in sectors exposed to the effects of the crisis in the German economy.
the group conducted a review of clients operating in sectors that may be affected by turbulence in the German economy
(automotive, furniture and production of large household appliances). For the pool of customers identified as particularly
sensitive, the Group has set additional provisions based on simulations assuming an increase in the probability of default (PD)
appropriate for a given sector.
In addition, in 2024, the Bank recognised additional allowance of PLN 43,700 thousand in the form of a Post Model Adjustment for
the LGD model changes estimated and planned to be implemented. These changes relate to the portfolio of loans secured by real
estate in PLN and the portfolio of loans to micro-enterprises.
Taking into account the changes indicated above, the balance of additional allowances in the form of Post Model Adjustments as
of 31 December 2024 amounted to PLN 232,031 thousand, while the balance as of 31 December 2023 was PLN 69,863 thousand.
Type of Post Model Adjustment
31.12.2023
Change
31.12.2024
Clients particularly sensitive to changes in the economic
environment
18,760
(5,155)
13,605
Farmers whose crops were affected by adverse weather events
-
51,258
51,258
Adjustment of parameters for sensitive customers using credit
holidays
51,103
(31,935)
19,168
Adjustment for sensitive customers in commercial real estate
segment
-
31,500
31,500
Adjustment for customers operating in sectors exposed to the
German economy
-
72,800
72,800
Adjustment for LGD model changes estimated and planned for
implementation
-
43,700
43,700
Total
69,863
162,168
232,031
In 2024, as part of adjusting the level of allowances to reflect expectations for future macroeconomic conditions, the level of
allowances increased by PLN 20,390 thousand, which resulted from updating the forecasts of macroeconomic variables included
in the IFRS 9 model used. In the quarterly cycle, the IFRS 9 model takes into account the revised projection of macroeconomic
variables prepared by the Department of Economic and Sectoral Analysis.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Sensitivity of allowances
Allowances for the expected credit losses on financial assets are back-tested on a regular basis. The models of risk parameters
used for purposes of estimating impairment allowances are covered by the model management process, which specifies the
principles of their development, approval and monitoring (including model back-testing). Additionally, there is a validation unit in
the Bank, which is independent of the owners and users of the models. The tasks of the unit include: annual validation of risk
parameters considered to be significant. The process of validation covers both qualitative and quantitative approach. The process
of estimating impairment allowances is subject to periodic functional control and verified independently by the internal audit.
In order to calculate the sensitivity of the level of allowances estimated by the collective method related to the realisation of
macroeconomic scenarios, the Bank used the method of changing the weights of the severe, pessimistic, baseline and optimistic
scenarios in accordance with their application consistent with IFRS 9.
The impact of particular scenarios is presented in the table below:
Analysis/scenario
Change in the
amount of
allowance
31.12.2024
The percentage
change in the
amount of
allowance
31.12.2024
Change in the
amount of
allowance
31.12.2023
The percentage
change in the
amount of
allowance
31.12.2023
Pessimistic scenario – considering pessimistic
and baseline scenarios only (optimistic scenario
0%, baseline scenario 50%, pessimistic
scenario 40%, severe scenario 10%)
139,208
8%
210,564
10%
Optimistic scenario – considering optimistic and
baseline scenarios only (optimistic scenario
50%, baseline scenario 50%, pessimistic
scenario 0%, severe scenario 0%)
(60,388)
-3%
(84,984)
-4%
Baseline scenario – uniform distribution of
optimistic and pessimistic scenarios (optimistic
scenario 25%, baseline scenario 50%,
pessimistic scenario 15%, severe scenario
10%)
46,080
3%
71,623
3%
The sensitivity of the level of allowances results directly from the counter-cyclical nature of the calculation of weights assigned to
individual macroeconomic scenarios. Countercyclicality is expressed in reducing the weight for the pessimistic scenario as the
recession deepens, and in reducing the impact of the optimistic scenario in the event of an "overheating" of the economy.
In addition, the impact of the estimated change in the level of allowances due to scenarios of changes in risk parameters is
presented below.
Analysis/scenario
Change in the
amount of
allowance
31.12.2024
The percentage
change in the
amount of
allowance
31.12.2024
Change in the
amount of
allowance
31.12.2023
The percentage
change in the
amount of
allowance
31.12.2023
PD decrease by 10%
(78,316)
-5%
(98,663)
-5%
PD increase by 10%
78,315
5%
98,662
5%
LGD decrease by 10%
(172,548)
-10%
(211,991)
-10%
LGD increase by 10%
149,152
9%
191,347
9%
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The following table considers the impact of a change in the present value of estimated future cash flows for exposures subject to
individual valuation.
Analysis/scenario
Change in the
amount of
allowance
31.12.2024
The percentage
change in the
amount of
allowance for
exposures
subject to
individual
valuation
31.12.2024
Change in the
amount of
allowance
31.12.2023
The percentage
change in the
amount of
allowance for
exposures
subject to
individual
valuation
31.12.2023
Decrease in present value of estimated future
cash flows for individually assessable
exposures by 10%
86,136
12%
38,531
7%
Increase in present value of estimated future
cash flows for individually assessable
exposures by 10%
(82,852)
-12%
(37,353)
-6%
Climate issues
When considering the need to disclose climate-related risks, the Bank takes into account the requirements for determining
materiality of financial information in paragraph 7 of IAS 1. According to these requirements, the Bank should consider both
quantitative factors and qualitative factors, as well as the interactions between the factors, when assessing whether or not the
information is material.
The Bank treats ESG risks, including climate risk, as a cross-cutting risk affecting traditional risks, including credit, liquidity and
operational risks. As part of the Bank's risk identification and assessment framework, a separate group of risks related to
environmental, social and corporate governance factors was defined. In the risk identification process, the significant impact of
ESG factors on credit risk was recognised. As a result, ESG risks were incorporated into the internal risk management framework
by including ESG risk as a subtype of credit risk in the Risk Management Strategy and Risk Appetite. In order to mitigate and
control the risk, a framework for measuring ESG risk in the Bank's Internal Capital Assessment Process (ICAAP) has also been
developed. The capital plan for 2022-2025 was supplemented with limits for ESG risk set based on the risk measurement made.
ESG Risk Management Principles have also been developed, which include, inter alia, provisions for risk monitoring and reporting
and stress testing.
In response to the requirements of the EBA/GL/2020/06 Guideline on lending and monitoring, the Bank developed ESG
assessment questionnaires, which were implemented in the lending process. The assessment is carried out for Customers for
whom new financing or an increase in financing is being processed as well as in the case of a customer review. The purpose of
the assessment is to identify any risks related to ESG factors affecting the financial position of the customers, as well as the impact
of the customers' business activities on ESG factors (double materiality principle). Environmental risks are subject to special
analysis by the Bank. They may materialise through:
1) physical risks related to environmental degradation, as well as climate change, including the occurrence of:
a) long-term climate change,
b) extreme weather events,
2) transition (transformation) risks resulting from the need to adapt the economy to gradual climate change, in particular to the
use of low-carbon and more environmentally sustainable solutions, including the occurrence of:
a) regulatory risk (changes in climate and environmental policies),
b) technological risks (a technology with a less damaging effect on the climate or the environment replaces a more
damaging technology, making it outdated),
c) changes in market sentiment and social norms,
3) liability risk arising from the Bank’s exposure to counterparties that could potentially be held liable for the negative impact of
their activities on environmental, social and corporate governance factors.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The assessment of the impact of long-term climate change and extreme weather events on the activities carried out by customers,
is taken into account by the Bank, in the process of granting and monitoring loans, in accordance with the following systematics:
Long-term climate changes:
Extreme weather events:
impact of higher temperatures
impact of heat waves
impact of temperature shocks
impact of cold waves
impact of changing wind patterns
impact of fires
impact of changing rain/snow-fall patterns and types
impacts of storms, tornadoes, etc.
impact of sea level rise
impact of droughts
impact of water stress (reduced access to water)
impact of heavy rain/snow-falls
impact of soil and coastal erosion
impact of floods
impact of soil degradation
impact of landslides
ESG risk assessment is one of the elements of a customer’s credit risk assessment. The result of the ESG risk analysis is taken
into account in the credit decision and in the review of the customer and, in situations of high risk identification, in the rating
assignment and update process.
The process of selecting counterparties with which the Bank enters into business relationships also makes it possible to limit
negative impacts in terms of ESG areas through, among other things, the sector policies in place, watch lists and exclusions and
the KYC (know-your-customer) tool. The established sector policies enable the Bank to control the impact of its financing and
support customers operating in sensitive sectors. The purpose of the sector policies is to encourage customers to follow best
practices and respect the social and environmental criteria set by the Bank. At the same time, the Bank has for a long time, through
the policies in place and the analysis of controversies, introduced restrictions in its activities by avoiding material exposures to the
sectors and Customers that will be most affected by climate change, e.g. through the materialisation of physical and transition
risks.
However, the Bank recognises that climate and environmental risks may represent a material risk to businesses and a systemic
risk to the economy, so it is taking steps to collect relevant data on these risks.
The climate-related issues are presented in more detail in the Sustainability Statement section of the Management Report on the
activities of BNP Paribas Bank Polska S.A. Capital Group.
b. Classification of financial instruments
When classifying financial instruments in accordance with IFRS 9, the Bank used the assessment of business models for
maintaining financial assets and assessing whether the contractual terms related to a financial asset resulted in cash flows that
were solely payment of principal and interest on the principal amount remaining to be repaid.
c. Fair value of financial instruments
Fair value measurements of financial instruments classified as level 2 or 3 in the fair value hierarchy are estimated using valuation
techniques (mark-to-model) that are consistent with market practice, and are parameterized based on reliable sources of market
data obtained from Refinitiv and Bloomberg information systems, among others.
For linear and non-linear OTC derivatives, valuation methods are used based on replicating the payoffs of valued instruments with
other instruments with similar characteristics for which market quotes are available from an active market. A Credit Valuation
Adjustment (CVA) and Debit Valuation Adjustment (DVA) are also determined for this category of instruments, which are estimated
based on the projected future exposure resulting from the transaction, the Bank's and the counterparty's credit ratings and the
collateral submitted/accepted. In addition, the materiality of other fair value adjustments (X-Value Adjustments, XVA) is verified.
The fair value measurement of debt instruments not listed in an active market and loans and advances is determined using a
method based on the present value of projected future cash flows or a method based on the expected recovery of a given exposure,
which take into account estimates of unobservable risk factors, i.e. the size of the credit spread, the probability of the debtor's
insolvency, the recovery rate.
For equity instruments not quoted in an active market, fair value measurements are determined using a method based on market
multiples or a method based on the present value of projected future cash flows, which take into account estimates of unobserved
risk factors, i.e. limited liquidity of the instrument, uncertainty related to the realization of assumed financial projections, market risk
premium associated with an investment in a particular category of financial instruments.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Valuations to fair value are regularly verified by a separate organizational unit, which is independent of the entities concluding
transactions. As part of the verification, an assessment is made of the convergence of valuations with market transaction prices
and the adequacy of the valuation methods used in the context of changes in financial markets.
d. Impairment of fixed assets
At the end of each reporting period, the Bank verifies whether there is any objective impairment trigger concerning its fixed assets
(including investments in subsidiaries). If such triggers have been identified, the Bank estimates the recoverable amount.
Recoverable amount corresponds to fair value less costs to sell or value in use of the asset or cash-generating unit, whichever is
higher. Determination of the value in use of a fixed asset requires the Bank to make assumptions as to the estimated amounts,
dates of future cash flows that may be generated by the Bank on the fixed asset. When estimating the fair value less costs to sell,
the Bank relies on available market data or valuations of independent appraisers, which generally are also based on estimates.
e. Provisions for retirement, disability and post-mortem benefit obligations
The Bank creates provisions for retirement, disability and post-mortem severance pay ("severance"), in accordance with IAS 19.
The provisions are calculated for each employee separately, using the actuarial method of projected unit credit as at the date of
valuation. The calculations take a number of factors into account, including macroeconomic conditions, employee turnover, risk of
death and others. The basis for calculating the provision for employees is the anticipated value of severance pay which the Bank
is to pay pursuant from the Remuneration Regulations in force at the Bank.
The anticipated severance pay is calculated as the resultant of:
• the expected severance base, in accordance with the provisions of the Collective Bargaining Agreement,
• the expected increase in the severance base from the moment of valuation until the payment of severance,
• the expected entitlement to an individual benefit for each employee.
The projected value is discounted actuarially at the end of each reporting period. In accordance with the requirements of IAS 19,
the financial discount rate for calculating the current value of liabilities related to employee benefits is determined on the basis of
market yields on treasury bonds whose currency and maturity date are consistent with the currency and the estimated date of the
benefit obligations.
The actuarial discount is the product of the financial discount, the probability of a person's continued employment at the Bank until
the severance is required, and the probability of the need for a particular benefit (e.g. the probability of acquiring a disability). The
value of annual write-offs and the probability are projected with the use of models which take the following three risks into account:
• possibility of dismissal from work,
• risk of inability to work,
• risk of death.
The employee's possibility of termination is estimated trough a probability distribution, based on the Bank’s statistical data. The
likelihood of dismissal depends on the age of the employee and is constant throughout each year of work. The risks of death and
disability were estimated based on analyses of the latest statistical data on life expectancy in Poland (for men and women) as well
as historical data published by the Central Statistical Office and the Social Security Office.
Provisions resulting from actuarial valuation are updated quarterly.
Sensitivity analysis
The table below presents the impact of a 1 p.p. change in the relevant actuarial assumptions on liabilities due to retirement,
disability and post-mortem severance as at 31 December 2024 and 31 December 2023.
increase by
decrease by
31.12.2024
1 p.p.
1 p.p.
discount rate
(2,084)
2,427
wage growth rate
2,426
(2,121)
31.12.2023
discount rate
(1,782)
2,079
wage growth rate
2,073
(1,809)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Reconciliation of present value of retirement, disability and post-mortem benefit obligations
The table below presents the reconciliation from the beginning balances to the ending balances for present value liabilities due to
retirement, disability and post-mortem benefit obligations:
12 months
to 31.12.2024
12 months
to 31.12.2023
Opening balance
20,181
18,547
current employment costs
1,961
1,928
net interest on net liability
1,043
1,128
actuarial gain or loss
1,698
1,377
past employment costs
-
(2,260)
benefits paid
(696)
(539)
Closing balance
24,187
20,181
f. Restructuring provision
Continuing the Bank's adaptation to the changing business environment, on 13 December 2023, another agreement was signed
with the trade unions on the principles of conducting collective redundancies for 2024-2026. Accordingly, in 2023, a provision for
liabilities to employees due to restructuring was created in the amount of PLN 48,446 thousand, as at 31 December 2024 the
provision amounts to PLN 35,704 thousand.
g. Deferred tax assets and liabilities
The deferred income tax liability is recognised in the full amount using the balance sheet method, due to positive temporary
differences between the tax value of assets and liabilities, and their balance sheet value in the financial statements. Deferred tax
assets are recognised for all negative temporary differences, as well as unused tax credits and unused tax losses carried forward
to the subsequent years, in the amount in which it is probable that taxable income will be generated that will allow the use of the
above mentioned differences, assets and losses.
Deferred income tax is determined using tax rates (and regulations) in force or at the end of the reporting period, which are
expected to be effective at the time of realization of the related assets due to deferred income tax or settlement of liabilities due to
deferred income tax.
If the temporary differences arose as a result of the recognition of an asset or liability resulting from a transaction that is not a
business combination and which at the time of the conclusion did not affect the tax or accounting result, the deferred tax is not
recognised.
In addition, a deferred tax provision is created for positive temporary differences arising from investments in subsidiaries or
associates and investments in joint ventures - except the situations when the timing of temporary differences reversal is subject to
control by the entity and when it is probable that in the foreseeable future, temporary differences will not be reversed. Deferred tax
assets are recognised in the event of negative temporary differences from investments in subsidiaries or associates and
investments in joint ventures, only to the extent that it is probable that in the foreseeable future the abovementioned temporary
differences will be reversed and taxable income allowing to offset any negative temporary differences will be generated.
However, deferred tax assets are recognized for deductible temporary differences on investments in subsidiaries or associates
and interests in joint ventures, only to the extent that it is probable that the aforementioned temporary differences will reverse in
the foreseeable future and taxable income will be generated to offset the deductible temporary differences.
The balance sheet amount of the deferred tax asset is reviewed at the end of each reporting period and is reduced accordingly,
and so far as it is no longer probable that taxable income sufficient for partial or total realization of the deferred tax asset will be
realized. An unrecognised deferred tax asset is subject to reassessment at the end of each reporting period and is recognised up
to an amount that reflects the probability of achieving future taxable income that will allow recovery of that asset. The Group offsets
deferred tax assets with deferred tax provisions if and only if it has an enforceable legal title to compensate corresponding
receivables and liabilities due to current tax and deferred income tax is related to the same taxpayer and the same tax authority.
Income tax related to the items recognised directly in equity is recognised in equity and in the statement of comprehensive income.
In the first quarter of 2023 the Bank decided to create an additional deferred tax asset in relation to provisions set up in connection
with the settlement process regarding CHF-denominated loan agreements and the possibility of benefiting from a tax preference
(waiver of CIT collection on redeemed loans under the Decree of the Minister of Finance of 11 March 2022, as amended).
In the second quarter of 2024, the Bank decided to create an additional asset in relation to the provisions set up in the process of
cancelling CHF-denominated loan agreements.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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For details, see Note 53 Litigation, claims and administrative proceedings.
In 2024 and 2023, current income tax and deferred tax liabilities were calculated using the 19% rate.
Global minimum tax level
In connection with the obligation to implement into the Polish legal order the provisions of Council Directive (EU) 2022/2523 of 14
December 2022 on ensuring the global minimum level of taxation of multinational enterprise groups and large-scale domestic
groups in the Union, the aim of which is to reduce corporate tax competition by establishing a global minimum tax, Poland passed
the Act dated 6 November 2024 on top-up taxation of members of multinational and domestic enterprise groups (hereinafter: the
‘Act’). The Act entered into force on 1 January 2025.
The new tax is to be levied on constituent entities of international and domestic groups which have an annual revenue of EUR 750
million or more in their ultimate parent entity’s consolidated financial statements in at least two of the four fiscal years immediately
preceding the tested fiscal year.
Groups of companies subject to the global top-up tax will be required to calculate an Effective Tax Rate (ETR) on income for each
jurisdiction in which they operate. In the event this rate is lower than 15%, an obligation to pay the top-up tax will arise.
As a result of the above, the Bank's foreign ultimate parent entity analyses previous years' data to allow for the calculation of the
ETR for each jurisdiction in which its group operates.
In parallel with the aforementioned activities, a project has also been initiated in the Bank Capital Group to assess the impact of
the provisions of the Act on the Bank's obligations in the Bank Capital Group, in particular the applicability of the so-called
transitional safe harbours allowing the application of simplified rules for the calculation of the top-up tax, as well as the
administrative obligations under the Act.
The Bank is covered by these regulations and has assessed their potential impact based on financial statements. According to the
Bank's assessment, the equalization tax regulations will not affect the additional tax burden in 2025.
h. Provision for the return of commission due to early repayment of the loan
On 11 September 2019, the CJEU issued a judgment in which it was stated that Article 16 paragraph 1 of the Directive No.
2008/48/EC of the European Parliament and of the Council of 23 April 2008 on consumer loan agreements which repealed Council
Directive No. 87/102/EEC should be interpreted in the following way: the consumer's right to reduce the total cost of a loan in the
event of earlier repayment includes all costs that have been imposed on the consumer. The CJEU pointed out that a comparative
analysis of the different language versions of Article 16 clause 1 of the Directive does not allow to clearly determine the exact
scope of the reduction of the total cost of a loan envisaged by this provision, because some language versions of this provision
suggest reducing the costs related to the remaining period of the contract, others suggest that the costs associated with this period
constitute an indication for calculating the reduction, others still only refer to interest and costs due for the remaining period of the
contract.
The judgment was issued following a question referred for a preliminary ruling by the Lublin-Wschód District Court based in
Świdnik, which examined three disputes between the company Lexitor, which acquired the claims of three clients, and SKOK
Stefczyka, Santander Consumer Bank and mBank, regarding the reduction of the total cost of consumer loans due to their earlier
repayment. The Polish court had doubts about the interpretation of Article 16 paragraph 1 of Directive No. 2008/48/EC of the
European Parliament and of the Council of 23 April 2008, and therefore asked the CJEU whether this provision concerns all costs
or only those related to the duration of the contract.
As a result of the analysis concerning the impact of the judgment on the Bank’s revenues, in particular on relations expired before
the judgment was issued, in 2019 the Bank decided to create a provision for a proportional refund of commission in the event of
early repayment of the loan in the amount of PLN 48,750 thousand. As at 31 December 2024 the provision amounted to PLN
10,023 thousand (as at 31 December 2023 the provision amounted to PLN 12,048 thousand). The provision was estimated based
on the estimation of the total amount of the provision for the early repaid loans and the expected percentage of customers who will
claim for a refund of the due part of the commission. Assuming that the percentage of customers would be 5 p.p. higher than the
assumed level, the amount of the provision would be higher by PLN 12,500 thousand.
Simultaneously, the Bank recognises its liability due to the proportional reimbursement of commissions in the event of their early
repayment in the period from the date of the judgment of the CJEU on 11 September 2019 to 31 December 2019. As of 31
December 2024, this liability amounted to PLN 2,242 thousand (PLN 2,258 thousand as of 31 December 2023).
Additionally, the Bank creates a provision to cover the partial reimbursements of loan commissions in the event of their early
repayment. The estimate of the provision is based on the difference between the value of commissions to be reimbursed and the
balance of unsettled commissions as at the expected date of early loan repayment. This provision is calculated as a percentage
of commissions charged to the customer, which reflects the expected average difference between the amounts of commissions to
be refunded to customers and the balance of outstanding commissions at the expected time of early repayment of the loan. This
percentage is calculated based on the estimated level of early repayments and the expected timing of repayment.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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In the event of early loan repayment, this provision is released and for newly sold loans a provision will be created on an ongoing
basis. As of 31 December 2024, the provision amounted to PLN 39,810 thousand (PLN 44,756 thousand as of 31 December
2023).
The total amount of provisions and liabilities related to the CJEU judgment as of 31 December 2024 was PLN 52,074 thousand
(as of 31 December 2023, the provision was PLN 59,063 thousand).
The created provision level is based on estimates and may be changed.
The above provisions are presented by the Bank under Provisions: Provision for litigation, while the Bank presents the liability
under Other liabilities: Sundry creditors
i. Impact of suspension of performance of mortgage loan agreements granted in PLN
In connection with the signing by the President of Poland of the Act of 12 April 2024 amending the Act on support for borrowers
who have taken out a home loan and are in financial difficulty and the Act on community financing for economic ventures and
assistance to borrowers (the ‘Act’), allowing customers to suspend the performance of mortgage loan agreements granted in PLN
in the period from 1 June 2024 to 31 December 2024 for a total of 4 months (‘suspension’), the Bank's Management Board
approved on 8 May 2024 an estimate of the impact of the Act on the Bank's results and operations.
In accordance with International Financial Reporting Standard 9 (‘IFRS 9’), the impact estimate is based on the calculation of the
projected gross carrying value of the mortgage portfolio based on cash flows, taking into account the possibility of suspension,
discounted at the original effective interest rate, which is then recognised in the income statement, in net interest income.
The law imposes an additional income criterion compared to 2022 (ratio of instalment size to household income, average over the
previous 3 months) to allow for the benefit of the suspension.
The Bank's Management Board approved the recognition of PLN 203,000 thousand negative impact of the Act in the second
quarter of 2024 results.
The Bank revised its estimate of the impact of the Act on its financial results and reduced the estimated participation among eligible
customers compared to the original assumptions. As a result, an update of the impact of the Act from the amount of PLN 203,000
thousand recognised in the results of the second quarter of 2024 to the level of PLN 103,450 thousand was recognised in the
results of the second quarter of 2024, which means a positive impact by PLN 99,550 thousand on the Bank's interest income in
the third quarter 2024. In addition, in the fourth quarter of 2024, the Bank updated the impact of the Act by an amount of PLN
33,976 thousand, which means a positive impact on the fourth quarter’s interest income.
The final cost of the program over its duration was PLN 69,474 thousand.
The suspension of contracts did not change the classification of exposures into different credit risk stages or the assignment of the
forbearance flag at the end of 2024.
j. Impact of legal risks arising from litigation related to mortgage loans in CHF
Impact of legal risk resulting from proceedings related to CHF mortgage loans and model used by the Bank were presented in
Note 53 Litigation, claims and administrative proceedings.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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4. NET INTEREST INCOME
Interest income
12 months ended
31.12.2024
12 months ended
31.12.2023
Amounts due from banks
423,790
482,253
Loans and advances to customers measured at amortised cost, including:
6,404,285
6,799,742
non-banking financial institutions
352,068
205,123
retail customers
2,724,364
3,098,157
corporates
3,311,513
3,473,647
including retail farmers
686,241
663,622
public sector institutions
4,366
4,739
leasing receivables
11,974
18,076
Loans and advances to customers measured at amortised cost through
profit or loss
50,227
80,349
Debt instruments measured at amortised cost
972,653
743,329
Debt instruments measured at fair value through profit or loss
7,466
6,928
Debt instruments measured at fair value through other comprehensive
income
850,362
658,027
Derivative instruments as part of fair value hedge accounting
854,393
403,209
Derivative instruments as part of cash flow hedge accounting
11,628
11,627
Securities purchased under repurchase agreements
330,633
255,621
Total interest income
9,905,437
9,441,085
Interest expense
12 months ended
31.12.2024
112 months ended
31.12.2023
Amounts due to banks
(496,001)
(361,204)
Amounts due to customers, including:
(2,436,587)
(2,713,932)
non-banking financial institutions
(150,495)
(124,417)
retail customers
(1,173,195)
(1,261,315)
corporates
(970,583)
(1,203,100)
including retail farmers
(9,560)
(16,494)
public sector institutions
(142,314)
(125,100)
Lease liabilities
(23,274)
(28,765)
Derivative instruments as part of fair value hedge accounting
(1,275,490)
(1,161,945)
Derivatives under cash flow hedge accounting
(36,561)
(44,099)
Securities sold subject to repurchase agreements
(5,711)
(4,811)
Total interest expense
(4,273,624)
(4,314,756)
Net interest income
5,631,813
5,126,329
The value of interest expense calculated using the effective interest rate in relation to financial liabilities, which are measured at
amortised cost, amounted to PLN 2,962,573 thousand (PLN 3,108,712 thousand for the period of 12 months ended 31 December
2023).
Interest income includes interest on financial assets assessed individually and collectively, for which impairment was identified.
The amount of the above mentioned interest, which was recognised in the interest income for 2024 amounted to PLN 82,837
thousand, as compared to PLN 115,590 thousand for 2023.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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5. NET FEE AND COMMISSION INCOME
Fee and commission income
12 months ended
31.12.2024
12 months ended
31.12.2023
loans, advances and leases
269,543
312,122
account maintenance
246,763
228,950
cash service
31,462
34,305
cash transfers and e-banking
108,047
102,812
guarantees and documentary operations
77,320
74,589
asset management and brokerage operations
103,118
83,314
payment and credit cards
414,307
377,644
insurance mediation activity
148,945
150,402
product sale mediation and customer acquisition
23,781
23,364
other commissions
57,990
39,371
Total fee and commission income
1,481,276
1,426,873
Fee and commission expense
12 months ended
31.12.2024
12 months ended
31.12.2023
loans, advances and leases
(998)
(656)
account maintenance
(9,774)
(10,789)
cash service
(28,566)
(26,198)
cash transfers and e-banking
(2,765)
(3,137)
guarantee obligations and documentary operations
(9,120)
(989)
asset management and brokerage operations
(5,428)
(4,940)
payment and credit cards
(121,800)
(123,463)
insurance mediation activity
(21,487)
(20,272)
product sale mediation and customer acquisition
(23,011)
(21,389)
other commissions
(55,816)
(53,769)
Total fee and commission expense
(278,765)
(265,602)
Net fee and commission income
1,202,511
1,161,271
Net commission income for 2024 includes revenues from custody activities in the amount of PLN 103,118 thousand (PLN 83,314
thousand in 2023) and the amount of costs from custody activities in the amount of PLN 5,428 thousand (PLN 4,940 thousand in
2023).
Net commission income includes commission income that relate to assets and liabilities that are not measured at fair value with
the result of measurement recognised in the statement of profit or loss for 2024 in the amount of PLN 828,541 thousand, while for
2023 in the amount of PLN 851,955 thousand, and commission expense for 2024 in the amount of PLN 86,601 thousand, as
compared to PLN 82,441 thousand for 2023.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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6. DIVIDEND INCOME
Dividend income
12 months ended
31.12.2024
12 months ended
31.12.2023
Due to equity instruments measured at fair value through profit or loss
13,147
10,881
Total dividend income
13,147
10,881
7. NET TRADING INCOME (INCLUDING RESULT ON
FOREIGN EXCHANGE)
Net trading income
12 months ended
31.12.2024
12 months ended
31.12.2023
Due to equity instruments measured at fair value through profit or loss
22,222
20,768
Due to debt instruments measured at fair value through profit or loss
2,730
4,261
Due to derivative instruments and result on foreign exchange transactions
816,085
926,562
Result on financial instruments measured at fair value through profit or
loss and foreign exchange differences, total
841,037
951,591
including margin on foreign exchange and
derivative transactions with customers
722,952
802,802
8. RESULT ON INVESTMENT ACTIVITIES
Result on investment activities
12 months ended
31.12.2024
12 months ended
31.12.2023
Equity instruments at fair value through other comprehensive income
-
36,899
Debt instruments measured at fair value through other comprehensive
income
10,591
(1,754)
Loans and advances to customers measured at fair value through profit or
loss
3,783
(23,282)
Total result on investment activities
14,374
11,863
There has been no change in the business models operating in the Bank during 2024 and 2023 and, consequently, there has been
no change in the classification of financial assets.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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9. NET IMPAIRMENT ALLOWENCES ON FINANCIAL
ASSETS AND PROVISON ON CONTINGENT LIABILITIES
Net allowances on expected credit losses of
financial assets and provisions on
contingent liabilities
12 months ended 31.12.2024
Stage 1
Stage 2
Stage 3
POCI
Total
Amounts due from other banks
594
-
-
-
594
Loans and advances to customers measured at
amortised cost
(20,178)
(14,908)
(122,575)
(54,537)
(212,198)
Contingent commitments granted
8,289
4,980
(27,486)
436
(13,781)
Securities measured at amortised cost
35
-
-
-
35
Total net allowances on expected credit
losses of financial assets and provisions on
contingent liabilities
(11,260)
(9,928)
(150,061)
(54,101)
(225,350)
Net allowances on expected credit losses of
financial assets and provisions on
contingent liabilities
12 months ended 31.12.2024
Stage 1
Stage 2
Stage 3
POCI
Total
Amounts due from other banks
(37)
-
-
-
(37)
Loans and advances to customers measured at
amortised cost
34,794
191,791
(228,192)
(23,470)
(25,077)
Contingent commitments granted
(13,874)
(31,187)
-
47,727
2,666
Securities measured at amortised cost
77
-
(2,127)
1,928
(122)
Total net allowances on expected credit
losses of financial assets and provisions on
contingent liabilities
20,960
160,604
(230,319)
26,185
(22,570)
Change of allowances on expected credit losses of financial assets
and provisions on contingent liabilities
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
(2,552,156)
(3,016,799)
Increases due to acquisition or origination
(249,394)
(261,248)
Decreases due to derecognition
268,003
380,964
Net changes in credit risk
(457,175)
(102,793)
Change due to significant modifications
8,124
(7,330)
Use of allowances
480,440
430,399
Other changes (including foreign exchange differences)
7,747
24,651
Closing balance
(2,494,411)
(2,552,156)
Net allowances on expected credit losses of financial assets and
provisions on contingent liabilities
12 months ended
31.12.2024
12 months ended
31.12.2023
Change in impairment allowances on financial assets and provisions on
contingent liabilities
(401,015)
(123,350)
Change in initial impairment on financial assets classified as POCI
(25,703)
(7,964)
Revenue from the sale and write-off of receivables and costs related to the
write-off of receivables
201,368
108,744
Total net allowances on expected credit losses of financial assets and
provisions on contingent liabilities
(225,350)
(22,570)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Due to the change in write-offs for expected credit losses on financial assets and provisions for contingent liabilities, the amount
of PLN 29,427 thousand resulting from the recognition of imparment interest was presented in the interest income line.
10. GENERAL ADMINISTRATIVE COSTS
General administrative costs
12 months ended
31.12.2024
12 months ended
31.12.2023
Personnel expenses
(1,528,680)
(1,421,472)
Marketing
(103,893)
(81,492)
IT and telecom expenses
(305,169)
(271,375)
Short-term leasing and operation
(82,622)
(84,555)
Other non-personnel expenses
(223,734)
(203,109)
Outsourced services from other contracts and consulting
(265,940)
(276,474)
Business travels
(11,631)
(13,578)
ATM and cash handling expenses
(29,952)
(28,407)
Costs of outsourcing services related to leasing operations
(1,445)
(2,775)
Bank Guarantee Fund fee
(143,992)
(123,909)
Commercial Banks Protection Scheme fees
-
(275)
Cost of PFSA supervision
(20,079)
(15,557)
Total general administrative costs
(2,717,137)
(2,522,978)
Total costs related to legal support of court cases concerning CHF loans in the 12 months of 2024 amounted to PLN 116,829
thousand (for 2023: PLN 91,046 thousand) and were included in the lines: Outsourced services from other contracts and consulting
– PLN 68,530 thousand in 2024 (PLN 65,825 thousand in 2023) and Other non-personnel expenses (notary and court fees).- PLN
48,299 thousand in 2024 (PLN 25,221 thousand in 2023).
11. PERSONNEL EXPENSES
Personnel expenses
12 months ended
31.12.2024
12 months ended
31.12.2023
Payroll expenses
(1,226,044)
(1,118,452)
Payroll charges
(218,156)
(198,955)
Employee benefits
(58,002)
(52,608)
Costs of restructuring provision
(649)
(31,305)
Costs of provision for future liabilities arising from unused annual leave and
retirement benefits
(5,237)
(5,871)
Appropriations to Social Benefits Fund
(19,074)
(15,041)
Other
(1,518)
760
Total personnel expenses
(1,528,680)
(1,421,472)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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12. DEPRECIATION AND AMORTISATION
Depreciation and amortization
12 months ended
31.12.2024
12 months ended
31.12.2023
Property, plant and equipment
(216,015)
(210,411)
Intangible assets
(298,843)
(246,244)
Total depreciation and amortization
(514,858)
(456,655)
13. OTHER OPERATING INCOME
Other operating income
12 months ended
31.12.2024
12 months ended
31.12.2023
Sale or liquidation of property, plant and equipment and intangible assets
19,233
20,977
Release of allowances on other receivables
7,907
6,602
Release of provisions for litigation and claims and other liabilities
19,460
56,090
Recovery of debt collection costs
19,723
16,973
Recovered indemnities
105
477
Income from leasing operations
18,940
17,991
Other operating income
31,262
23,718
Total other operating income
116,630
142,828
14. OTHER OPERATING EXPENSES
Other operating expenses
12 months ended
31.12.2024
12 months ended
31.12.2023
Loss on sale or liquidation of property, plant and equipment and intangible
assets
(13,614)
(16,589)
Impairment allowances on other receivables
(10,836)
(8,258)
Provisions for litigation and claims and other liabilities
(59,407)
(70,050)
Debt collection
(36,200)
(34,633)
Donations made
(7,779)
(11,216)
Costs of leasing operations
(20,318)
(17,425)
Costs of compensations, penalties and fines
(2,183)
(9,219)
Other operating expenses
(97,869)
(65,507)
Total other operating expenses
(248,206)
(232,897)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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15. INCOME TAX EXPENSE
12 months ended
31.12.2024
12 months ended
31.12.2023
Current income tax
(666,482)
(668,051)
Deferred income tax
83,641
(77,296)
Total income tax expense
(582,841)
(745,347)
Profit before income tax
2,903,639
1,753,175
Statutory tax rate
19%
19%
Effective tax rate
20%
43%
Income taxes on gross profit
(551,691)
(333,103)
Taxable permanent differences, including:
(166,685)
(412,244)
Receivables written-off
(31,882)
(22,664)
Representation expenses
(927)
(743)
PFRON
(2,007)
(1,871)
Prudential fee to the Bank Guarantee Fund
(27,358)
(23,543)
Tax on financial institutions
(76,945)
(78,214)
Research and development relief
21,254
26,670
Provision for claims related to CHF loans
(44,955)
(311,382)
Legal risk provisions
(1,113)
5,528
Other differences
(2,752)
(6,025)
Other amounts affecting the effective tax rate
135,535
-
Change in estimate of deferred tax created based on provisions for future
disbursements related to CHF loan cancellation process*
135,535
-
Total income tax expense
(582,841)
(745,347)
*For details, see Note 53 Litigation, claims and administrative proceedings.
16. EARNING PER SHARE
12 months ended
31.12.2024
12 months ended
31.12.2023
Basic
Net profit
2,320,798
1,007,828
Weighted average number of ordinary shares (units)
147,767,964
147,655,366
Basic earnings (loss) per share (in PLN per one share)
15.71
6.83
Diluted
Net profit used in determining diluted earnings per share
2,320,798
1,007,828
Weighted average number of ordinary shares (units)
147,767,964
147,655,366
Adjustments for:
- stock options
148,260
144,166
Weighted average number of ordinary shares for the diluted earnings per
share (units)
147,916,224
147,799,532
Diluted earnings (loss) per share (in PLN per one share)
15.69
6.82
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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In accordance with IAS 33 the Bank prepares the calculation of diluted net profit per share, taking into account the shares issued
conditionally under incentive schemes described in Note 38. The calculation does not take into account those elements of the
incentive schemes which had antidilutive effect in the presented reporting periods and which may potentially affect the dilution of
profit per share in the future.
The basic earnings per share is calculated by dividing the net profit by the weighted average number of ordinary shares during the
period.
The diluted earnings per share is calculated based on the ratio of net profit to the weighted average number of ordinary shares
adjusted as if all potential dilutive ordinary shares had been converted to shares. The Bank has one category of dilutive potential
ordinary shares: share options. Dilutive shares are calculated as the number of shares that would be issued if all share options
were exercised at the market price determined as the average annual closing price of the Bank's shares.
17. CASH AND CASH BALANCES AT CENTRAL BANK
Cash and cash equivalents
31.12.2024
31.12.2023
Cash and other balances
2,382,814
2,426,914
Account in the National Bank of Poland
8,943,135
4,457,458
Gross cash and cash equivalents
11,325,949
6,884,372
Allowance for expected credit losses
(398)
(790)
Total cash and cash equivalents
11,325,551
6,883,582
Change in allowance for expected credit losses
on receivables on funds at the Central Bank
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
(790)
(9)
Increases due to acquisition or origination
-
(9)
Decreases due to derecognition
-
1,558
Other changes (including foreign exchange differences)
392
(2,330)
Closing balance
(398)
(790)
During the day, the Bank may use cash on statutory reserve accounts for current cash settlements based on an order placed at
the National Bank of Poland. The Bank has to ensure that the average monthly balance matches the declared statutory reserve
amount.
The funds on the statutory reserve account bear interest. As at 31 December 2024 interest on statutory reserve accounts was
5.75% (5.75% as at 31 December 2023).
The balance of cash in hand and at Central Bank includes the statutory reserve maintained with the National Bank of Poland. The
basic reserve requirement at 31 December 2024 was 3.5%. The declared reserve level to be maintained since 31 December 2024
was PLN 4,489,469 thousand.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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18. AMOUNT DUE FROM OTHER BANKS
Amounts due from other banks
31.12.2024
31.12.2023
Gross
balance
sheet value
Allowance
Net balance
sheet value
Gross
balance
sheet value
Allowance
Net balance
sheet value
Current accounts
6,824,682
(391)
6,824,291
8,918,229
(539)
8,917,690
Interbank deposits
60,009
-
60,009
64,027
(32)
63,995
Loans and advances
203,173
(105)
203,068
201,190
(100)
201,090
Other receivables
701,960
(31)
701,929
8,707,981
(58)
8,707,923
Total amounts due from other
banks
7,789,824
(527)
7,789,297
17,891,427
(729)
17,890,698
Other receivables as of 31 December 2024 also include receivables from cash collateral in the amount of PLN 701,960 thousand
(PLN 736,283 thousand as of 31 December 2023) and receivables from securities purchased with repurchase obligation received
in the amount of PLN 0 (PLN 7,968,341 as of 31 December 2023).
The total balance of long-term amounts due from banks as at 31 December 2024 amounted to PLN 701,960 thousand (PLN
736,283 thousand as at 31 December 2023).
Change in allowance due to expected credit losses on receivables
from Banks
12 months ended
31.12.2024
12 months ended
31.12.2023
Balance at the beginning of the period
(729)
(1,505)
Increases due to acquisition or origination
(5,133)
(3,782)
Decreases due to derecognition
6,666
5,490
Changes resulting from the change in credit risk (net)
(1,331)
(963)
Other changes (including foreign exchange differences)
-
31
Balance at the end of the period
(527)
(729)
As at 31 December 2024 and 31 December 2023, amounts due from other banks were classified as Stage 1.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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19. DERIVATIVE FINANCIAL INSTRUMENTS
Fair value of derivatives held by the Bank is presented in the below table:
Trading derivatives
Nominal value
Fair value
Fair value
31.12.2024
Wartość
nominalna
Assets
Liabilities
Currency derivatives
Foreign Exchange Forward (FX Forward + NDF)
14,469,317
37,255
906,062
Currency Swap (FX Swap)
32,426,711
1,271,409
302,283
Currency Interest Rate Swaps (CIRS)
5,326,035
44,928
26,099
OTC currency options
5,830,272
15,179
66,341
Total currency derivatives
58,052,335
1,368,771
1,300,785
Interest rate derivatives:
Interest Rate Swap
73,389,031
1,002,488
944,444
FRA contracts
1,922,850
22
159
OTC interest rate options
9,492,475
40,739
41,417
Total interest rate derivatives
84,804,356
1,043,249
986,020
Other derivatives
OTC options
1,167,654
28,096
24,936
Currency Spot (FX Spot)
1,243,941
-
-
Total other derivatives
2,411,595
28,096
24,936
Total trading derivatives
145,268,286
2,440,116
2,311,741
Including: measured using models
145,268,286
2,440,116
2,311,741
Trading derivatives
Nominal value
Fair value
Fair value
31.12.2023
Wartość
nominalna
Assets
Liabilities
Currency derivatives
Foreign Exchange Forward (FX Forward + NDF)
12,729,040
67,984
990,823
Currency Swap (FX Swap)
25,655,076
1,444,643
294,517
Currency Interest Rate Swaps (CIRS)
5,604,525
65,635
31,665
OTC currency options
11,746,884
227,734
340,613
Total currency derivatives
55,735,525
1,805,996
1,657,618
Interest rate derivatives
Interest Rate Swap
67,172,213
1,218,645
1,088,117
FRA contracts
1,500,000
85
22
OTC interest rate options
10,657,404
91,520
91,452
Total interest rate derivatives
79,329,617
1,310,250
1,179,591
Other derivatives
OTC commodity swaps
870,970
30,499
28,066
Currency Spot (FX Spot)
2,194,110
-
-
Total other derivatives
3,065,080
30,499
28,066
Total trading derivatives
138,130,222
3,146,745
2,865,275
including: measured using models
138,130,222
3,146,745
2,865,275
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Fair value of derivatives by their maturity*
Fair value of assets
Fair value of liabilities
31.12.2024
Total
<= 1
month
> 1 month
<= 3 months
> 3 months
<= 12 months
> 1 year
<= 5 years
> 5
years
Total
<= 1
month
> 1 month
<= 3 months
> 3 months
<= 12 months
> 1 year
<= 5 years
> 5
years
Trading derivatives
Currency derivatives:
Foreign Exchange Forward
(FX Forward + NDF)
37,255
3,987
5,033
14,586
13,649
-
906,062
47,010
78,748
224,761
555,543
-
Currency Swap (FX Swap)
1,271,409
78,884
81,101
434,549
676,875
-
302,283
32,892
24,699
13,229
231,463
-
Currency Interest Rate
Swaps (CIRS)
44,928
-
170
6,450
38,113
195
26,099
-
-
1,311
24,645
143
OTC currency options
15,179
1,326
3,080
5,003
5,770
-
66,341
7,793
21,110
25,924
11,514
-
Total currency
derivatives:
1,368,771
84,197
89,384
460,588
734,407
195
1,300,785
87,695
124,557
265,225
823,165
143
Interest rate derivatives:
Interest Rate Swap
1,002,488
1,951
13,892
133,199
445,294
408,152
944,444
1,198
10,664
100,822
451,068
380,692
FRA contracts
22
-
-
22
-
-
159
-
-
159
-
-
OTC interest rate options
40,739
-
57
8,330
26,907
5,445
41,417
-
57
7,961
27,609
5,790
Total interest rate
derivatives
1,043,249
1,951
13,949
141,551
472,201
413,597
986,020
1,198
10,721
108,942
478,677
386,482
Other derivatives
OTC commodity swaps
28,096
6,809
4,377
14,414
2,496
-
24,936
6,530
4,226
12,583
1,597
-
Total other derivatives:
28,096
6,809
4,377
14,414
2,496
-
24,936
6,530
4,226
12,583
1,597
-
Total trading derivatives
2,440,116
92,957
107,710
616,553
1,209,104
413,792
2,311,741
95,423
139,504
386,750
1,303,439
386,625
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total sum.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Fair value of assets
Fair value of liabilities
31.12.2023
Total
<= 1
month
> 1 month
<= 3 months
> 3 months
<= 12 months
> 1 year
<= 5 years
> 5
years
Total
<= 1
month
> 1 month
<= 3 months
> 3 months
<= 12 months
> 1 year
<= 5 years
> 5
years
Trading derivatives
Currency derivatives:
Foreign Exchange Forward
(FX Forward + NDF)
67,984
12,091
15,245
31,794
8,854
-
990,823
32,688
69,578
231,792
656,765
-
Currency Swap (FX Swap)
1,444,643
123,412
84,565
408,359
828,307
-
294,517
22,400
34,980
57,462
179,675
-
Currency Interest Rate
Swaps (CIRS)
65,635
-
592
21,490
40,258
3,295
31,665
-
-
1,230
27,277
3,158
OTC currency options
227,734
20,113
39,637
162,008
5,976
-
340,613
33,667
66,091
219,657
21,198
-
Total currency
derivatives:
1,805,996
155,616
140,039
623,651
883,395
3,295
1,657,618
88,755
170,649
510,141
884,915
3,158
Interest rate derivatives:
Interest Rate Swap
1,218,645
2,287
4,039
114,219
771,322
326,778
1,088,117
1,783
2,218
97,125
686,584
300,407
FRA contracts
85
-
-
85
-
-
22
-
-
22
-
-
OTC interest rate options
91,520
2,039
1,514
4,672
79,647
3,648
91,452
2,039
1,512
5,377
78,884
3,640
Total interest rate
derivatives
1,310,250
4,326
5,553
118,976
850,969
330,426
1,179,591
3,822
3,730
102,524
765,468
304,047
Other derivatives
OTC commodity swaps
30,499
6,065
5,820
8,546
10,068
-
28,066
5,839
5,664
8,092
8,471
-
Total other derivatives:
30,499
6,065
5,820
8,546
10,068
-
28,066
5,839
5,664
8,092
8,471
-
Total trading derivatives
3,146,745
166,007
151,412
751,173
1,744,432
333,721
2,865,275
98,416
180,043
620,757
1,658,854
307,205
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total sum.
Maturity dates:
• for NDF, FX forward, FX swap, currency and options, IRS, CIRS calculated as a difference in days between the transaction maturity date and the balance sheet date
• for FX spot, FRA, securities to be issued/received calculated as a difference in days between the transaction currency date and the balance sheet date.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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20. HEDGE ACCOUNTING
As at 31 December 2024, the Bank used fair value hedge (macro fair value hedge).
Hedging relationship description
The hedges are used against interest rate risk, specifically changes in the fair
value of fixed-rate assets and liabilities resulting from changes in a specific
reference rate.
Hedged items
Fixed-rate PLN, EUR and USD current accounts are the hedged items.
Hedging instruments
Hedging instruments include standard IRS transactions, i.e. plain vanilla IRS in
PLN, EUR and USD, in which the Bank receives a fixed interest rate and pays
a floating rate based on WIBOR 6M, WIBOR 3M, EURIBOR 6M, EURIBOR 3M,
EUR ESTR, USD SOFR.
Hedged position
Nominal value
Fair value
Assets
Liabilities
31.12.2024
18,848,110
-
18,603,684
31.12.2023
11,315,595
-
10,900,678
IRS
Nominal value
Fair value
Assets
Liabilities
31.12.2024
18,848,110
128,395
560,884
31.12.2023
11,315,595
67,980
630,468
Presentation of result on the hedged and
hedging transactions
The change in fair value of hedging instruments is recognised in the Result on
hedge accounting. Interest on IRS transactions and current accounts is
recognised in Interest income.
The liabilities in the item "Differences from hedge accounting" include the adjustment of the value of hedged instruments (deposits)
amounting to:
31.12.2024 -PLN 482,813 thousand
31.12.2023 -PLN 547,696 thousand
and the difference in valuation to fair value of hedged items for which the hedging relationship was terminated during its term,
amounting to:
31.12.2024 -PLN 98,875 thousand
31.12.2023 -PLN 338,202 thousand
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The below table presents derivative hedging instruments at their nominal value by residual maturity dates as at 31 December 2024
and 31 December 2023:
31.12.2024
Hedging derivatives
Fair value
Nominal value
positive
negative
< 1 month
1-3 months
3 months-1
year
1-5 years
> 5 years
Total
Interest rate
agreements
Swap (IRS)
128,395
560,884
977,636
3,653,415
3,739,030
6,941,727
3,536,302
18,848,110
Hedging derivatives -
total
128,395
560,884
977,636
3,653,415
3,739,030
6,941,727
3,536,302
18,848,110
31.12.2023
Hedging derivatives
Fair value
Nominal value
positive
negative
< 1 month
1-3 months
3 months-1
year
1-5 years
> 5 years
Total
Interest rate
agreements
Swap (IRS)
67,980
630,468
-
359,255
2,698,055
5,447,695
2,810,590
11,315,595
Hedging derivatives -
total
67,980
630,468
-
359,255
2,698,055
5,447,695
2,810,590
11,315,595
Hedging relationship description
The hedges are used against interest rate risk, specifically changes in the fair
value of fixed-rate assets and liabilities resulting from changes in a specific
reference rate.
Hedged items
The hedged items are fixed-rate loans in PLN.
Hedging instruments
Hedging instruments are the standard IRS transactions, i.e. plain vanilla IRS,
denominated in PLN, in which the Bank receives a floating rate based on WIBOR
3M and pays a fixed interest rate.
Hedged position
Nominal value
Fair value
Assets
Liabilities
31.12.2024
1,025,000
1,075,119
-
31.12.2023
1,275,000
1,338,285
-
IRS
Nominal value
Fair value
Assets
Liabilities
31.12.2024
1,025,000
-
46,206
31.12.2023
1,275,000
-
59,467
Presentation of result on the hedged and
hedging transactions
The change in fair value of hedging transactions is recognised in the Result on
hedge accounting. Interest on IRS transactions and hedged items is recognised
in Interest income.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Also included in assets under "Fair value adjustment of hedged and hedging items" is an adjustment to the value of hedged
instruments (loans) amounting to:
31.12.2024 -PLN 367 thousand
31.12.2023 PLN 12,153 thousand
The below table presents derivative hedging instruments at their nominal value by residual maturity dates as at 31 December 2024
and 31 December 2023:
31.12.2024
Hedging derivatives
Fair value
Nominal value
positive
negative
< 1 month
1-3 months
3 months-1
year
1-5 years
> 5 years
Total
Interest rate
agreements
Swap (IRS)
-
46,206
275,000
750,000
-
-
-
1,025,000
Hedging derivatives -
total
-
46,206
275,000
750,000
-
-
-
1,025,000
31.12.2023
Hedging derivatives
Fair value
Nominal value
positive
negative
< 1 month
1-3 months
3 months-1
year
1-5 years
> 5 years
Total
Interest rate
agreements
Swap (IRS)
-
59,467
-
-
250,000
1,025,000
-
1,275,000
Hedging derivatives -
total
-
59,467
-
-
250,000
1,025,000
-
1,275,000
In 2024, the hedging relationships presented proved effective.
In 2023, the hedging relationships presented proved effective, there was one termination due to ongoing interest rate risk
management.
Additionally, the Bank applies micro fair value hedge accounting as of 31 December 2024.
Hedging relationship description
The hedges are used against interest rate risk, specifically changes in the fair
value of fixed-rate assets and liabilities resulting from changes in a specific
reference rate.
Hedged items
The hedged items are: fixed coupon bonds in EUR and USD.
Hedging instruments
Hedging instruments are the standard IRS transactions, i.e. plain vanilla IRS,
denominated in EUR and USD, in which the Bank pays a fixed interest rate and
receives a floating rate based on EUR ESTR i USD SOFR.
Hedged position
Nominal value
Fair value
Assets
Liabilities
31.12.2024
9,319,699
9,362,899
-
31.12.2023
3,726,887
3,778,945
-
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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IRS
Nominal value
Fair value
Assets
Liabilities
31.12.2024
9,319,699
102,630
120,190
31.12.2023
3,726,887
14,364
84,418
Presentation of result on the hedged and
hedging transactions
The change in fair value of hedging transactions is recognised in the Result on
hedge accounting. Interest on IRS transactions and hedged items is recognised
in Interest income.
The below table presents derivative hedging instruments at their nominal value by residual maturity dates as at 31 December 2024
and 31 December 2023:
31.12.2024
Hedging derivatives
Fair value
Nominal value
positive
negative
< 1 month
1-3 months
3 months-1
year
1-5 years
> 5 years
Total
Interest rate
agreements
Swap (IRS)
102,630
120,190
-
-
562,175
3,110,437
5,647,087
9,319,699
Hedging derivatives -
total
102,630
120,190
-
-
562,175
3,110,437
5,647,087
9,319,699
31.12.2023
Hedging derivatives
Fair value
Nominal value
positive
negative
< 1 month
1-3 months
3 months-1
year
1-5 years
> 5 years
Total
Interest rate
agreements
Swap (IRS)
14,364
84,418
-
-
-
1,037,380
2,689,508
3,726,887
Hedging derivatives -
total
14,364
84,418
-
-
-
1,037,380
2,689,508
3,726,887
Amounts recognised in the profit or loss account under fair value hedge accounting:
Fair value
12 months ended
31.12.2024
12 months ended
31.12.2023
Net interest income on hedging derivative instruments
854,393
403,209
Net interest expense on derivative hedging instruments
(1,275,490)
(1,161,945)
Change in fair value of hedging transactions recognised in the Result on
hedge accounting, including:
1,946
(30,939)
change in fair value of hedging instruments
56,129
527,031
change in fair value of hedged instruments
(54,183)
(557,970)
In 2024 and 2023, the hedging relationships presented proved effective.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
59
Additionally, the Bank applies cash flow hedge accounting as of 31 December 2024.
Hedging relationship description
The hedges are used against interest rate risk, specifically no changes in the
interest cash flows on the hedged item, resulting from the changes in a specific
reference rate.
Hedged items
The hedged items are: Floating rate bond WZ1131.
Hedging instruments
Hedging instruments include standard IRS transactions, i.e. plain vanilla IRS in
which the Bank receives a fixed rate and pays a floating rate based on WIBOR
6M.
Hedged position
Nominal value
Fair value
Assets
Assets
31.12.2024
625,000
602,037
-
31.12.2023
625,000
599,313
-
IRS
Nominal value
Fair value
Assets
Assets
31.12.2024
625,000
-
114,433
31.12.2023
625,000
-
104,179
Presentation of result on the hedged and
hedging transactions
The change in fair value of derivative hedging instruments designated as
hedging of cash flows is recognised directly in the Revaluation reserve in the
part constituting the effective part of the hedge. The ineffective part of the hedge
is recognised in the statement of profit or loss under Result on hedge accounting.
The below table presents derivative hedging instruments at their nominal value by residual maturity dates as of 31 December 2024
and 31 December 2023:
31.12.2024
Hedging derivatives
Fair value
Nominal value
positive
negative
< 1 month
1-3 months
3 months-1
year
1-5 years
> 5 years
Total
Interest rate
agreements
Swap (IRS)
-
114,433
-
-
-
-
625,000
625,000
Hedging derivatives –
total
-
114,433
-
-
-
-
625,000
625,000
31.12.2023
Hedging derivatives
Fair value
Nominal value
positive
negative
< 1 month
1-3 months
3 months-1
year
1-5 years
> 5 years
Total
Interest rate
agreements
Swap (IRS)
-
104,179
-
-
-
-
625,000
625,000
Hedging derivatives –
total
-
104,179
-
-
-
-
625,000
625,000
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
60
Cash flow hedges
12 months ended
31.12.2024
12 months ended
31.12.2023
Interest income on hedging derivatives
11,628
11,627
Interest expense on hedging derivatives
(36,561)
(44,099)
Changes in revaluation reserve due to valuation of derivative hedging instruments in cash flow hedge accounting.
Interest rate risk
12 months ended
31.12.2024
12 months ended
31.12.2023
Balance at the beginning of the period
(101,987)
(169,290)
Hedging gains or losses recognised in other comprehensive income during
the reporting period
(10,138)
67,303
Balance at the end of the period
(112,125)
(101,987)
In 2024 and 2023, the hedging relationships presented proved effective.
21. LOANS AND ADVANCES TO CUSTOMERS MEASURED
AT AMORTISED COST
31.12.2024
Loans and advances to customers measured at amortised cost
Gross balance
sheet value
Allowance
Net balance
sheet value
Loans and advances for:
Non-banking financial entities
6,484,263
(28,960)
6,455,303
current account loans
5,669,050
(23,666)
5,645,384
investment loans
428,858
(4,786)
424,072
other loans
386,355
(508)
385,847
Retail customers:
32,858,093
(763,594)
32,094,499
mortgage loans
20,207,062
(271,971)
19,935,091
other loans
12,651,031
(491,623)
12,159,408
Corporate customers:
43,959,373
(1,512,250)
42,447,123
current account loans
19,592,707
(822,522)
18,770,185
investment loans
18,002,369
(528,263)
17,474,106
other loans
6,364,297
(161,465)
6,202,832
including retail farmers:
7,769,080
(361,727)
7,407,353
current account loans
5,028,136
(197,256)
4,830,880
investment loans
2,730,561
(163,321)
2,567,240
other loans
10,383
(1,150)
9,233
Public sector institutions:
67,960
(516)
67,444
current account loans
44,577
(453)
44,124
investment loans
23,165
(60)
23,105
other loans
218
(3)
215
Lease receivables
151,860
(26,971)
124,889
Total loans and advances to customers measured at amortised
cost
83,521,549
(2,332,291)
81,189,258
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
61
31.12.2023
Loans and advances to customers measured at amortised cost
Gross balance
sheet value
Allowance
Net balance
sheet value
Loans and advances for:
Non-banking financial entities
3,858,748
(13,610)
3,845,138
current account loans
3,616,375
(10,994)
3,605,381
investment loans
192,911
(1,889)
191,022
other loans
49,462
(727)
48,735
Retail customers:
34,410,687
(866,551)
33,544,136
mortgage loans
21,986,449
(317,536)
21,668,913
other loans
12,424,238
(549,015)
11,875,223
Corporate customers:
44,987,421
(1,488,530)
43,498,891
current account loans
20,584,657
(870,432)
19,714,225
investment loans
17,671,641
(498,413)
17,173,228
other loans
6,731,123
(119,685)
6,611,438
including retail farmers:
7,765,713
(396,126)
7,369,587
current account loans
4,626,815
(212,116)
4,414,699
investment loans
3,129,127
(182,775)
2,946,352
other loans
9,771
(1,235)
8,536
Public sector institutions:
58,375
(734)
57,641
current account loans
33,984
(300)
33,684
investment loans
24,134
(431)
23,703
other loans
257
(3)
254
Lease receivables
226,332
(34,913)
191,419
Total loans and advances to customers measured at amortised
cost
83,541,563
(2,404,338)
81,137,225
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
62
Net loans and advances to customers by Stages
31.12.2024
Stage 1
Stage 2
Stage 3
POCI
Total
Gross loans and advances to customers
measured at amortized cost
72,748,214
8,106,657
2,550,778
115,900
83,521,549
Non-banking financial entities
6,370,246
104,738
9,070
209
6,484,263
Retail customers
29,641,536
2,477,237
704,447
34,873
32,858,093
Corporate customers:
36,602,677
5,463,511
1,812,367
80,818
43,959,373
including retail farmers
6,466,106
896,275
391,583
15,116
7,769,080
Public sector entities:
58,752
9,208
-
-
67,960
Lease receivables
75,003
51,963
24,894
-
151,860
Impairment allowance on loans and
advances for:
(339,533)
(520,612)
(1,445,674)
(26,472)
(2,332,291)
Non-banking financial entities
(10,238)
(11,463)
(7,152)
(107)
(28,960)
Retail customers
(87,484)
(196,969)
(476,276)
(2,865)
(763,594)
Corporate customers:
(238,886)
(305,132)
(944,732)
(23,500)
(1,512,250)
including retail farmers
(74,904)
(47,840)
(236,922)
(2,061)
(361,727)
Public sector entities
(252)
(264)
-
-
(516)
Lease receivables
(2,673)
(6,784)
(17,514)
-
(26,971)
Net loans and advances to customers
measured at amortised cost
72,408,681
7,586,045
1,105,104
89,428
81,189,258
31.12.2023
Stage 1
Stage 2
Stage 3
POCI
Total
Gross loans and advances to customers
measured at amortized cost
72,744,166
8,253,483
2,396,847
147,067
83,541,563
Non-banking financial entities
3,834,346
10,802
11,099
2,501
3,858,748
Retail customers
30,734,283
2,869,596
769,701
37,107
34,410,687
Corporate customers:
38,070,700
5,245,177
1,564,085
107,459
44,987,421
including retail farmers
6,215,099
1,071,955
473,231
5,428
7,765,713
Public sector entities:
47,816
10,528
31
-
58,375
Lease receivables
57,021
117,380
51,931
-
226,332
Impairment allowance on loans and
advances for
(320,337)
(554,119)
(1,491,020)
(38,862)
(2,404,338)
Non-banking financial entities
(4,463)
(481)
(8,582)
(84)
(13,610)
Retail customers
(97,225)
(264,930)
(502,152)
(2,244)
(866,551)
Corporate customers:
(218,183)
(285,055)
(948,758)
(36,534)
(1,488,530)
including retail farmers
(48,946)
(59,690)
(286,981)
(509)
(396,126)
Public sector entities
(339)
(371)
(24)
-
(734)
Lease receivables
(127)
(3,282)
(31,504)
-
(34,913)
Net loans and advances to customers
measured at amortised cost
72,423,829
7,699,364
905,827
108,205
81,137,225
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
63
31.12.2024
Stage 2
Stage 3
Total
Gross POCI loans and advances to customers measured at
amortized cost
31,942
83,958
115,900
Non-banking financial entities
4
205
209
Retail customers
23,907
10,966
34,873
Corporate customers:
8,031
72,787
80,818
including retail farmers
1,261
13,855
15,116
Impairment allowance on loans and advances for
(190)
(26,282)
(26,472)
Non-banking financial entities
-
(107)
(107)
Retail customers
(87)
(2,778)
(2,865)
Corporate customers:
(103)
(23,397)
(23,500)
including retail farmers
-
(2,061)
(2,061)
Total net POCI loans and advances to customers measured at
amortized cost
31,752
57,676
89,428
31.12.2023
Stage 2
Stage 3
Total
Gross POCI loans and advances to customers measured at
amortized cost
47,493
99,574
147,067
Non-banking financial entities
3
2,498
2,501
Retail customers
25,862
11,245
37,107
Corporate customers:
21,628
85,831
107,459
including retail farmers
-
5,428
5,428
Impairment allowance on loans and advances for
(385)
(38,477)
(38,862)
Non-banking financial entities
-
(84)
(84)
Retail customers
(115)
(2,129)
(2,244)
Corporate customers:
(270)
(36,264)
(36,534)
including retail farmers
-
(509)
(509)
Total net POCI loans and advances to customers measured at
amortized cost
47,108
61,097
108,205
Impairment allowance for loans and advances measured at amortised cost
Change in impairment allowances
Stage 1
Stage 2
Stage 3
POCI
Total
Opening balance as at 1 January 2024
(320,337)
(554,119)
(1,491,020)
(38,862)
(2,404,338)
Increase due to acquisition or origination
(131,913)
(20,188)
(37,870)
-
(189,971)
Decrease due to derecognition
34,739
37,628
142,628
977
215,972
Changes resulting from the change in credit risk
(net)
76,997
(32,343)
(458,054)
(29,815)
(443,215)
Use of allowances
2
43,802
395,513
41,122
480,439
Other changes (including foreign exchange
differences)
979
4,608
3,129
106
8,822
Closing balance as of 31 December 2024
(339,533)
(520,612)
(1,445,674)
(26,472)
(2,332,291)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
64
Change in impairment allowances
Stage 1
Stage 2
Stage 3
POCI
Total
Opening balance as at 1 January 2023
(359,264)
(774,611)
(1,697,292)
(39,482)
(2,870,649)
Increase due to acquisition or origination
(164,967)
(24,918)
(14,002)
-
(203,887)
Decrease due to derecognition
43,214
76,701
235,363
139
355,417
Changes resulting from the change in credit risk
(net)
156,843
162,137
(469,749)
(6,212)
(156,981)
Use of allowances
9
54
443,851
6,214
450,128
Other changes (including foreign exchange
differences)
3,828
6,518
10,809
479
21,634
Closing balance as at 31 December 2023
(320,337)
(554,119)
(1,491,020)
(38,862)
(2,404,338)
The total balance of long-term loans and advances due to customers as at 31 December 2024 amounted to PLN 70,556,302
thousand (PLN 70,167,985 thousand as at 31 December 2023).
Change in gross loans and advances to
customers measured at amortised cost
Stage 1
Stage 2
Stage 3
POCI
Total
Opening balance as at 1 January 2024
72,744,166
8,253,483
2,396,847
147,067
83,541,563
Increase due to acquisition or origination
19,579,810
1,047,096
166,272
42,504
20,835,682
Decrease due to derecognition
(25,657,304)
(4,246,866)
(1,471,520)
(172,058)
(31,547,748)
Changes resulting from transfers between
stages
(3,137,574)
2,137,263
1,000,311
-
-
Other changes
9,219,116
915,681
458,868
98,387
10,692,052
Closing balance as of 31 December 2024
72,748,214
8,106,657
2,550,778
115,900
83,521,549
Change in gross loans and advances to
customers measured at amortised cost
Stage 1
Stage 2
Stage 3
POCI
Total
Opening balance as at 1 January 2023
73,543,933
8,984,512
2,827,007
165,799
85,521,251
Increase due to acquisition or origination
21,473,534
753,523
46,213
26,882
22,300,152
Decrease due to derecognition
(27,781,946)
(4,179,756)
(1,482,964)
(64,703)
(33,509,369)
Changes resulting from transfers between
stages
(2,814,494)
2,084,589
729,905
-
-
Other changes
8,323,139
610,615
276,686
19,089
9,229,529
Closing balance as at 31 December 2023
72,744,166
8,253,483
2,396,847
147,067
83,541,563
Gross amount of foreign currency mortgage loans for retail customers (in PLN ‘000)
Loans by currency
31.12.2024
31.12.2023
CHF
406,207
815,687
EUR
20,928
24,003
PLN
19,779,708
21,146,369
USD
219
390
Total
20,207,062
21,986,449
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
65
31.12.2024
Value of CHF loan portfolio
Gross balance
sheet value
including CHF
exposures
Allowance
including CHF
exposures
Loans and advances for:
Non-banking financial entities
6,484,263
-
(28,960)
-
current account loans
5,669,050
-
(23,666)
-
investment loans
428,858
-
(4,786)
-
other loans
386,355
-
(508)
-
Retail customers:
32,858,093
413,149
(763,594)
(126,534)
mortgage loans
20,207,062
406,207
(271,971)
(122,514)
other loans
12,651,031
6,942
(491,623)
(4,020)
Corporate customers:
43,959,373
32,485
(1,512,250)
(9,964)
current account loans
19,592,707
24,742
(822,522)
(2,930)
investment loans
18,002,369
7,743
(528,263)
(7,034)
other loans
6,364,297
-
(161,465)
-
including retail farmers:
7,769,080
212
(361,727)
(20)
current account loans
5,028,136
212
(197,256)
(20)
investment loans
2,730,561
-
(163,321)
-
other loans
10,383
-
(1,150)
-
Public sector institutions:
67,960
-
(516)
-
current account loans
44,577
-
(453)
-
investment loans
23,165
-
(60)
-
other loans
218
-
(3)
-
Lease receivables
151,860
5,175
(26,971)
(1,328)
Total loans and advances
83,521,549
450,809
(2,332,291)
(137,826)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
66
31.12.2023
Value of CHF loan portfolio
Gross balance
sheet value
including CHF
exposures
Allowance
including CHF
exposures
Loans and advances for:
Non-banking financial entities
3,858,748
795
(13,610)
-
current account loans
3,616,375
795
(10,994)
-
investment loans
192,911
-
(1,889)
-
other loans
49,462
-
(727)
-
Retail customers:
34,410,687
825,675
(866,551)
(153,953)
mortgage loans
21,986,449
815,687
(317,536)
(149,431)
other loans
12,424,238
9,988
(549,015)
(4,522)
Corporate customers:
44,987,421
36,345
(1,488,530)
(8,296)
current account loans
20,584,657
29,775
(870,432)
(2,087)
investment loans
17,671,641
6,570
(498,413)
(6,209)
other loans
6,731,123
-
(119,685)
-
including retail farmers:
7,765,713
131
(396,126)
-
current account loans
4,626,815
131
(212,116)
-
investment loans
3,129,127
-
(182,775)
-
other loans
9,771
-
(1,235)
-
Public sector institutions:
58,375
-
(734)
-
current account loans
33,984
-
(300)
-
investment loans
24,134
-
(431)
-
other loans
257
-
(3)
-
Lease receivables
226,332
5477
(34,913)
(31)
Total loans and advances
83,541,563
868,292
(2,404,338)
(162,280)
22. LOANS AND ADVANCES TO CUSTOMERS MEASURED
AT FAIR VALUE THROUGH PROFIT OR LOSS
31.12.2024
31.12.2023
Subsidised loans
452,506
653,582
Total loans and advances to customers measured at fair value through
profit a loss
452,506
653,582
The table below presents a comparison of the fair value of subsidised loans with their gross balance sheet value, which would
have been recognised if the Bank - in accordance with the requirements of IFRS 9 - did not measure these portfolios to fair value
through profit or loss.
Gross balance sheet value
Fair value
31.12.2024
527,495
452,506
31.12.2023
745,213
653,582
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
67
Subsidised loans measured through fair value
Stage 1
Stage 2
Stage 3
Total
31.12.2024
347,269
86,634
18,603
452,506
31.12.2023
515,534
110,059
27,989
653,582
23. SECURITIES MEASURED AT AMORTISED COST
31.12.2024
Securities
Gross balance
sheet value
Allowance
Net balance
sheet value
issued by local banks
4,312,778
(55)
4,312,723
issued by other financial institutions
7,270,226
(20)
7,270,206
issued by governments – Treasury bonds
20,747,460
(81)
20,747,379
issued by non-financial entities – bonds
4,155
(4,155)
-
issued by local governments – municipal bonds
34,265
(23)
34,242
Total securities measured at amortised cost
32,368,884
(4,334)
32,364,550
31.12.2023
Securities
Gross balance
sheet value
Allowance
Net balance
sheet value
issued by local banks
4,293,857
-
4,293,857
issued by other financial institutions
3,207,638
-
3,207,638
issued by governments – Treasury bonds
18,696,431
(102)
18,696,329
issued by non-financial entities – bonds
4,155
(4,155)
-
issued by local governments – municipal bonds
48,565
(111)
48,454
Total securities measured at amortised cost
26,250,646
(4,368)
26,246,278
31.12.2024
Stage 1
Stage 2
Stage 3
Total
Securities
32,364,729
-
4,155
32,368,884
issued by local banks
4,312,778
-
-
4,312,778
issued by other financial institutions
7,270,226
-
-
7,270,226
issued by governments – Treasury bonds
20,747,460
-
-
20,747,460
issued by non-financial entities – bonds
-
-
4,155
4,155
issued by local governments – municipal bonds
34,265
-
-
34,265
Impairment allowances on securities
(179)
-
(4,155)
(4,334)
issued by domestic banks
(55)
-
-
(55)
issued by other financial institutions
(20)
-
-
(20)
issued by governments – Treasury bonds
(81)
-
-
(81)
issued by non-financial entities – bonds
-
-
(4,155)
(4,155)
issued by local governments – municipal bonds
(23)
-
-
(23)
Total net securities measured at amortised cost
32,364,550
-
-
32,364,550
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
68
31.12.2023
Faza 1
Faza 2
Faza 3
Razem
Securities
26,246,491
-
4,155
26,250,646
issued by local banks
4,293,857
-
-
4,293,857
issued by other financial institutions
3,207,638
-
-
3,207,638
issued by governments – Treasury bonds
18,696,431
-
-
18,696,431
issued by non-financial entities – bonds
-
-
4,155
4,155
issued by local governments – municipal bonds
48,565
-
-
48,565
Impairment allowances on securities:
(213)
-
(4,155)
(4,368)
issued by governments – Treasury bonds
(102)
-
-
(102)
issued by non-financial entities – bonds
-
-
(4,155)
(4,155)
issued by local governments – municipal bonds
(111)
-
-
(111)
Total net securities measured at amortised cost
26,246,278
-
-
26,246,278
In accordance with the Bank Guarantee Fund (“BFG”) Act of 14 December 1994, as at 31 December 2024, BNP Paribas held
Treasury bonds recognised in the statement of financial position in the amount of PLN 348,772 thousand (with the nominal value
of PLN 360,000 thousand), securing the guaranteed funds under BFG (in 2023 in the amount of PLN 362,241 thousand with the
nominal value of PLN 370,000 thousand).
Change in debt instruments measured at amortized cost at carrying
value
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
26,246,278
22,167,261
Purchase of securities
11,316,130
6,973,174
Repurchase of securities
(1,944,534)
(1,566,216)
Sale of securities
(3,080,657)
(1,240,000)
Change in impairment allowances
35
40,611
Change on the initial value adjustment
-
46,555
Change in interest due, foreign exchange differences, discounts and
bonuses
(172,702)
(175,107)
Closing balance
32,364,550
26,246,278
Change in impairment allowances on debt instruments measured at
amortized cost
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
(4,368)
(44,979)
Increases due to creation and acquisition
(66)
-
Decreases due to derecognition
-
260
Changes due to changes in credit risk (net)
100
40,351
Closing balance
(4,334)
(4,368)
The gross amount of long-term securities measured at amortised cost as at 31 December 2024 was PLN 30,651,053 thousand
(PLN 23,656,705 thousand as at 31.12.2023).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
69
24. SECURITIES MEASURED AT FAIR VALUE THROUGH
PROFIT OR LOSS
Securities measured at fair value through profit or loss
31.12.2024
31.12.2023
Bonds convertible for non-financial entities bonds
80,284
77,078
Equity instruments
239,821
212,974
Certificates issued by non-financial entities
820
835
Total securities measured at fair value through profit or loss
320,925
290,887
Change in securities measured at fair value through profit or loss
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
290,887
311,236
Purchase of securities
2,258
29,581
Redemption of securities
(2,001)
-
Sale of securities
-
(58,896)
Change in measurement at fair value through profit or loss
26,740
9,269
Change in interest due, foreign exchange differences, discounts and
bonuses
3,041
(303)
Closing balance
320,925
290,887
The gross amount of long-term securities measured at fair value through profit or loss as at 31 December 2024 was PLN 32,663
thousand (PLN 50,320 thousand as at 31 December 2023).
The table below presents the amount of securities measured at fair value through profit or loss, divided into designated at fair value
through profit or loss and obligatorily measured at fair value through profit and loss.
12 months ended
31.12.2024
12 months ended
31.12.2023
Classified as obligatory measured at fair value through profit or loss as at
the moment of initial recognition
81,103
77,913
Classified as measured at fair value through profit or loss as at the moment
of initial recognition
239,822
212,974
Total securities measured at fair value through profit or loss
320,925
290,887
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
70
25. SECURITIES MEASURED AT FAIR VALUE THROUGH
OTHER COMPREHENSIVE INCOME
Securities
31.12.2024
31.12.2023
NBP bills
4,997,605
3,347,144
Bonds issued by banks
2,629,766
2,587,815
Treasury bonds issued by central governments
4,303,712
4,988,298
Bonds issued by other financial institutions
11,096,371
5,711,046
Securities measured at fair value through other comprehensive income
23,027,454
16,634,303
Change of securities measured at fair value through other
comprehensive income
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
16,634,303
17,384,793
Purchase of securities
243,028,982
177,704,827
Redemption of securities
(235,600,230)
(177,283,590)
Sale of securities
(1,121,481)
(1,835,000)
Change in measurement at fair value through other comprehensive income
43,787
653,872
Change in measurement at fair value through profit or loss
23,220
97,570
Change in interest due, foreign exchange differences, discounts and
bonuses
32,367
(88,169)
Other changes
(13,494)
-
Closing balance
23,027,454
16,634,303
The gross amount of securities measured at fair value through other comprehensive income as at 31 December 2024 was PLN
16,077,861 thousand (PLN 12,787,244 thousand as at 31 December 2023).
The table below presents gains and losses related to securities measured at fair value through other comprehensive income, which
in the given period were recognised directly in equity, and then were derecognised and recognised in profit or loss for a given
period of 12 months until 31 December 2024 and 31 December 2023.
Profit/ loss on securities measured at fair value through other
comprehensive income
12 months ended
31.12.2024
12 months ended
31.12.2023
Profits included directly in equity and then transferred from equity to the
statement of profit or loss
11,183
7,388
Losses included directly in equity and then transferred from equity to the
statement of profit or loss
(592)
(9,142)
Total profit/ loss on securities measured at fair value through other
comprehensive income
10,591
(1,754)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
71
26. INVESTMENTS IN SUBSIDIARIES
31.12.2024
31.12.2023
Financial sector entities
76,728
76,728
Non-financial sector entities
31,698
41,998
Total investments in subsidiaries
108,426
118,726
Shares in subsidiaries as at 31 December 2024 and 31 December 2023
31.12.2024
Acquisition cost of
shares
Balance sheet
value
Interest held by the Bank
in the entity’s equity
Entity’s name
BNP PARIBAS TOWARZYSTWO FUNDUSZY
INWESTYCYJNYCH S.A.
36,731
36,731
100%
BNP PARIBAS LEASING SERVICES SP. Z O.O.
39,997
39,997
100%
BNP PARIBAS GROUP SERVICE CENTER S.A.
31,698
31,698
100%
Total
108,426
108,426
On 29 November 2024, an application was submitted to remove Campus Leszno Sp. z o.o. from the National Court Register.
31.12.2023
Acquisition cost of
shares
Balance sheet
value
Interest held by the Bank
in the entity’s equity
Entity’s name
BNP PARIBAS TOWARZYSTWO FUNDUSZY
INWESTYCYJNYCH S.A.
36,731
36,731
100%
BNP PARIBAS LEASING SERVICES SP. Z O.O.
39,997
39,997
100%
BNP PARIBAS GROUP SERVICE CENTER S.A.
31,698
31,698
100%
CAMPUS LESZNO SP. Z O.O.
12,514
10,300
100%
Total
120,940
118,726
27. INTANGIBLE ASSETS
Intangible assets
31.12.2024
31.12.2023
Licenses
702,505
661,807
Other intangible assets
96,381
68,334
Expenditure on intangible assets
179,277
209,941
Total intangible assets
978,163
940,082
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
72
Intangible assets
12 months ended 31.12.2024
Licenses
Other intangible
assets
Expenditure on
intangible assets
Total
Gross book value
As of 1 January 2024
1,885,998
104,135
215,233
2,205,366
Increases:
313,923
53,739
356,174
723,836
reclassification from expenditure
305,977
53,617
-
359,594
purchase
7,946
122
347,913
355,981
other
-
-
8,261
8,261
Decreases:
(14,320)
-
(390,634)
(404,954)
reclassification from expenditure
-
-
(359,594)
(359,594)
sale, liquidation, donation, shortage
(14,320)
-
-
(14,320)
other
-
-
(31,040)
(31,040)
As of 31 December 2024
2,185,601
157,874
180,773
2,524,248
Accumulated amortisation (-)
As of 1 January 2024
1,224,191
35,801
-
1,259,992
Changes:
258,905
25,692
-
284,597
amortisation for the financial year
273,151
25,692
-
298,843
sale, liquidation, donation, shortage
(13,727)
-
-
(13,727)
other
(519)
-
-
(519)
As of 31 December 2024
1,483,096
61,493
-
1,544,589
Impairment allowances (-)
As of 1 January 2024
-
-
5,292
5,292
Balance changes:
-
-
(3,796)
(3,796)
write-down update
-
-
(3,796)
(3,796)
As of 31 December 2024
-
-
1,496
1,496
Net book value
As of 1 January 2024
661,807
68,334
209,941
940,082
As of 31 December 2024
702,505
96,381
179,277
978,163
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
73
Intangible assets
12 months ended 31.12.2023
Licenses
Other intangible
assets
Expenditure on
intangible assets
Total
Gross book value
As of 1 January 2023
1,617,455
60,744
182,056
1,860,255
Increases:
289,270
45,092
383,599
717,961
reclassification from expenditure
283,442
45,087
-
328,529
purchase
4,376
5
357,024
361,405
other
1,452
-
26,575
28,027
Decreases:
(20,727)
(1,701)
(350,422)
(372,850)
reclassification from expenditure
-
-
(328,529)
(328,529)
sale, liquidation, donation, shortage
(17,575)
(1,458)
-
(19,033)
other
(3,152)
(243)
(21,893)
(25,288)
As of 31 December 2023
1,885,998
104,135
215,233
2,205,366
Accumulated amortisation (-)
As of 1 January 2023
1,013,372
21,591
-
1,034,963
Changes:
210,819
14,210
-
225,029
amortisation for the financial year
230,229
16,015
-
246,244
sale, liquidation, donation, shortage
(17,214)
(1,445)
-
(18,659)
other
(2,196)
(360)
-
(2,556)
As of 31 December 2023
1,224,191
35,801
-
1,259,992
Impairment allowances (-)
As of 1 January 2023
-
-
96
96
Balance changes:
-
-
5,196
5,196
write-down update
-
-
5,196
5,196
As of 31 December 2023
-
-
5,292
5,292
Net book value
As of 1 January 2023
604,083
39,153
181,960
825,196
As of 31 December 2023
661,807
68,334
209,941
940,082
The Bank identifies impairment triggers for intangible assets which are not transferred to utilisation yet, i.e. those under
development, on an ongoing basis.
As at 31 December 2024, the Bank had significant contractual obligations incurred in connection with the acquisition of intangible
assets in the amount of PLN 17,506 thousand (PLN 14,541 thousand as of 31 December 2023).
Expenditures on intangible assets include: licenses, development costs resulting in the creation of new software or modification of
existing software.
As a result of the impairment tests, impairment was identified for the expenditures for which impairment was identified due to
changes in business priorities in the project being conducted.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
74
28. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment
31.12.2024
31.12.2023
Fixed assets, including:
377,613
384,099
land and buildings
71,366
77,992
IT equipment
139,648
130,819
office equipment
35,405
40,138
other, including leasehold improvements
131,194
135,150
Fixed assets under construction
28,006
19,004
Right of use, including:
541,177
556,634
land and buildings
508,655
524,334
motor vehicles
31,317
30,407
IT equipment
1,084
1,579
other, including leasehold improvements
121
314
Total property, plant and equipment
946,796
959,737
Changes in property, plant and equipment in 2024 and 2023 were presented below:
Property, plant and equipment and fixed assets under construction
12 months ended 31.12.2024
Land and
buildings
Property, plant
and equipment
Fixed assets
under
construction
Total
Gross book value
As of 1 January 2024
181,276
1,022,323
19,149
1,222,748
Increases:
854
133,631
53,141
187,626
reclassification from fixed assets under
construction
156
31,677
-
31,833
purchase
613
68,243
39,467
108,323
other
85
33,711
13,674
47,470
Decreases:
(11,897)
(120,208)
(44,229)
(176,334)
reclassification from fixed assets under
construction
-
-
(31,833)
(31,833)
sale, liquidation, donation, shortage, theft
(11,897)
(88,737)
-
(100,634)
other
-
(31,471)
(12,396)
(43,867)
As of 31 December 2024
170,233
1,035,746
28,061
1,234,040
Accumulated depreciation (-)
As of 1 January 2024
95,940
714,005
-
809,945
Balance changes:
(3,126)
14,513
-
11,387
depreciation for the financial year
4,222
100,949
-
105,171
sale, liquidation, donation, shortage
(7,348)
(86,436)
-
(93,784)
As of 31 December 2024
92,814
728,518
-
821,332
Impairment allowances (-)
As of 1 January 2024
7,344
2,211
145
9,700
Balance changes:
(1,291)
(1,230)
(90)
(2,611)
write-down update
(1,291)
(1,230)
(90)
(2,611)
As of 31 December 2024
6,053
981
55
7,089
Net book value
As of 1 January 2024
77,992
306,107
19,004
403,103
As of 21 December 2024
71,366
306,247
28,006
405,619
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
75
Property, plant and equipment and fixed assets under construction
12 months ended 31.12.2023
Land and
buildings
Property, plant
and equipment
Fixed assets
under
construction
Total
Gross book value
As of 1 January 2023
196,624
1,011,706
44,669
1,252,999
Increases:
3,280
140,528
35,137
178,945
reclassification from fixed assets under
construction
1,771
33,582
-
35,353
purchase
7
60,016
23,244
83,267
other
1,502
46,930
11,893
60,325
Decreases:
(18,628)
(129,911)
(60,657)
(209,196)
reclassification from fixed assets under
construction
-
-
(35,353)
(35,353)
sale, liquidation, donation, shortage
(18,628)
(89,386)
-
(108,014)
ther
-
(40,525)
(25,304)
(65,829)
As of 31 December 2023
181,276
1,022,323
19,149
1,222,748
Accumulated depreciation (-)
As of 1 January 2023
101,640
702,487
-
804,127
Balance changes:
(5,700)
11,518
-
5,818
depreciation for the financial year
4,569
97,206
-
101,775
sale, liquidation, donation, shortage
(10,727)
(87,421)
-
(98,148)
other
458
1,733
-
2,191
As of 31 December 2023
95,940
714,005
-
809,945
Impairment allowances (-)
As of 1 January 2023
9,187
1,616
169
10,972
Balance changes:
(1,843)
595
(24)
(1,272)
write-down update
(1,843)
595
(24)
(1,272)
As of 31 December 2023
7,344
2,211
145
9,700
Net book value
As of 1 January 2023
85,797
307,603
44,500
437,900
As of 31 December 2023
77,992
306,107
19,004
403,103
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
76
Right of use
12 months ended 31.12.2024
Land and
buildings
Motor vehicles
IT equipment
Other, including
leasehold
improvements
Total
Gross book value
As at 1 January 2024
935,428
53,804
1,974
797
992,003
Increases
154,553
21,723
-
83
176,359
Decreases
(108,491)
(17,319)
-
(689)
(126,499)
As at 31 December 2024
981,490
58,208
1,974
191
1,041,863
Accumulated depreciation (-)
-
As at 1 January 2024
409,926
23,397
395
483
434,201
Balance changes:
61,894
3,494
495
(413)
65,470
depreciation for the financial year
98,301
11,886
495
162
110,844
other
(36,407)
(8,392)
-
(575)
(45,374)
As at 31 December 2024
471,820
26,891
890
70
499,671
Impairment allowances (-)
-
As at 1 January 2024
1,168
-
-
-
1,168
Balance changes:
(153)
-
-
-
(153)
recognition of impairment allowance
622
-
-
-
622
reversal of impairment allowance
(775)
-
-
-
(775)
As at 31 December 2024
1,015
-
-
-
1,015
Net book value
-
As at 1 January 2024
524,334
30,407
1,579
314
556,634
As at 31 December 2024
508,655
31,317
1,084
121
541,177
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
77
Right of use
12 months ended 31.12.2023
Land and
buildings
Motor vehicles
IT equipment
Other, including
leasehold
improvements
Total
Gross book value
As at 1 January 2023
933,996
45,784
-
841
980,621
Increases
463,232
20,017
1,974
6
485,229
Decreases
(461,800)
(11,997)
-
(50)
(473,847)
As at 31 December 2023
935,428
53,804
1,974
797
992,003
Accumulated depreciation (-)
-
As at 1 January 2023
336,653
20,588
-
371
357,612
Balance changes:
73,273
2,809
395
112
76,589
depreciation for the financial year
97,372
10,757
395
112
108,636
other
(24,099)
(7,948)
-
-
(32,047)
As at 31 December 2023
409,926
23,397
395
483
434,201
Impairment allowances (-)
-
As at 1 January 2023
1,206
-
-
-
1,206
Balance changes:
(38)
-
-
-
(38)
recognition of impairment allowance
646
-
-
-
646
reversal of impairment allowance
(684)
-
-
-
(684)
As at 31 December 2023
1,168
-
-
-
1,168
Net book value
-
As at 1 January 2023
596,137
25,196
-
470
621,803
As at 31 December2023
524,334
30,407
1,579
314
556,634
As at 31 December 2024, the Bank had significant contractual obligations incurred in connection with the acquisition of property,
plant and equipment in the amount of PLN 541 thousand (PLN 7,209 thousand as of 31 December 2023).
29. LEASES
Bank as a lessee
Bank is a contractual party of leasing agreements related to such base assets as:
● property,
● vehicles,
● land, including perpetual usufruct right to land,
● cash deposit machines,
● equipment,
● IT equipment.
The leasing period of vehicles equals 1 to 5 years. Leasing agreements contain extension options. In respect of vehicles, the Bank
also concludes leaseback agreements.
The Bank is also a party to real estate leasing agreements. The contracts are concluded for both a definite period of 1 to 30 years
and indefinite period. In the case of contracts concluded for an indefinite period, the Bank determines the leasing period based on
the notice period. The agreements provide for variable leasing fees depending on the index (e.g. CSO, HICP).
The Bank has also land lease agreements concluded for an indefinite period, and perpetual usufruct rights for land received for
the period of 40 to 100 years. Lease payments are indexed in accordance with the land management act.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
78
12 months ended
31.12.2024
12 months ended
31.12.2023
Costs of leasing recognised in profit and loss account
(134,589)
(138,386)
cost of interest from leasing liabilities
(23,274)
(28,765)
cost of amortization of assets due to the right of use
(110,844)
(108,636)
costs related to short-term leases (recognised as administrative costs)
(471)
(985)
Undiscounted lease payments by maturity
31.12.2024
31.12.2023
up to 1 year
137,045
137,540
from 1 year to 5 years
404,875
410,854
over 5 years
151,812
183,158
Total
693,732
731,552
31.12.2024
31.12.2023
Book value of liabilities due to discounted lease
606,204
626,174
Bank as a lessor
Lease contracts under which substantially all the risk and rewards of ownership are transferred to the lessee are classified as
finance leases. The statement of financial position includes the value of receivables equal to the net leasing investment. The
revenue recognition from finance lease agreements reflects the constant periodic rate of return on the net leasing investment made
by the Bank under finance leases.
The Bank does not offer operational leasing products, i.e. those in which substantially all the risks and rewards of ownership are
not transferred to the lessee.
Finance lease receivables
31.12.2024
31.12.2023
Gross receivables due to finance lease
163,274
237,787
Unrealized financial income
(11,414)
(11,455)
Present value of minimum lease payments
151,860
226,332
Impairment allowance
(26,971)
(34,913)
Total finance lease receivables
124,889
191,419
Gross finance lease receivables by maturity
31.12.2024
31.12.2023
up to 1 year
57,553
169,885
from 1 year to 5 years
105,721
53,471
over 5 years
-
14,431
Total gross finance lease receivables
163,274
237,787
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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79
30. OTHER ASSETS
Other assets:
31.12.2024
31.12.2023
Receivables from contracts with customers:
sundry debtors
625,139
344,983
accrued income
95,542
99,120
payment card settlements
27,250
18,449
social insurance settlements
1,841
4,281
Other:
interbank and intersystem settlements
373,626
236,944
deferred expenses
100,080
63,535
tax and other regulatory receivables
14,178
10,224
other lease receivables
847
109
other
56,617
80,496
Total other assets (gross)
1,295,120
858,141
Impairment allowances on other receivables from other debtors
(66,953)
(74,147)
Total other assets (net)
1,228,167
783,994
including financial assets*
961,750
530,619
*Financial assets include all items of Other Assets except: Accrued income, Deferred expenses, Tax and other regulatory receivables, Other.
31. AMOUNTS DUE TO OTHER BANKS
Amounts due to other banks
31.12.2024
31.12.2023
Current accounts
619,766
436,509
Interbank deposits
-
78,280
Loans and advances received
4,063,385
2,813,594
Other liabilities
1,074,721
1,242,789
Total amounts due to other banks
5,757,872
4,571,172
Also presented under Other liabilities are liabilities to customers from cash collateral in the amount of PLN 1,038,897 thousand
(PLN 1,235,899 thousand as at 31 December 2023) and liabilities from securities sold subject to repurchase agreements in the
amount of PLN 23,722 thousand (PLN 0 as at 31 December 2023).
In 2024 and 2023, there were no breaches of contractual provisions and covenants related to the Bank's financial position and
disclosure obligations. High inflation and changes in interest rates did not create a risk of breach of contractual provisions in the
long-term contracts the Bank has signed.
The amount of long-term liabilities due to other banks as at 31 December 2024 equals PLN 5,102,282 thousand (PLN 4,049,340
thousand as at 31 December 2023).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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32. AMOUNTS DUE TO CUSTOMERS
Amounts due to customers
31.12.2024
31.12.2023
Other financial institutions
5,463,926
5,586,718
Current accounts
2,592,161
2,810,485
Term deposits
2,412,093
2,313,749
Loans and advances received
449,955
460,893
Other liabilities
9,717
1,591
Retail customers
55,184,397
50,355,270
Current accounts
29,692,494
25,698,063
Term deposits
24,966,589
24,136,350
Other liabilities
525,314
520,857
Corporate customers
66,845,338
68,804,368
Current accounts
51,169,786
54,038,992
Term deposits
15,238,714
14,340,423
Other liabilities
436,838
424,953
Including RETAIL FARMERS
4,318,283
4,455,559
Current accounts
4,119,103
4,161,313
Term deposits
179,281
278,769
Other liabilities
19,899
15,477
Public sector institutions
3,336,467
2,387,709
Current accounts
2,881,865
2,123,185
Term deposits
452,788
263,477
Other liabilities
1,814
1,047
Total amounts due to customers
130,830,128
127,134,065
The amount of long-term amounts due to customers as at 31 December 2024 equals PLN 712,297 thousand (PLN 801,466
thousand as at 31 December 2023).
33. SUBORDINATED LIABILITIES
Subordinated liabilities
31.12.2024
31.12.2023
3,420,128
4,336,072
Change in the balance of subordinated liabilities
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
4,336,072
4,416,887
Loan repayments
(873,320)
-
Change in the balance of interest
(11,789)
330
Exchange differences
(30,835)
(81,145)
Closing balance
3,420,128
4,336,072
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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81
34. OTHER LIABILITIES
Other liabilities
31.12.2024
31.12.2023
Liabilities due to contracts with customers
Sundry creditors
567,525
206,391
Payment card settlements
210,545
170,210
Deferred income
80,316
72,150
Escrow account liabilities
544
484
Social insurance settlements
18,880
19,357
Other liabilities
Interbank and intersystem settlements
232,555
658,732
Provisions for non-personnel expenses
682,136
603,164
Provisions for other employees-related liabilities
262,083
240,361
Provision for unused annual holidays
39,437
42,571
Other regulatory liabilities
73,645
62,638
Other lease liabilities
3,607
3,267
Other
91,027
53,875
Total other liabilities
2,262,300
2,133,200
including financial liabilities*
1,033,656
1,058,441
*Financial liabilities include all items of Other liabilities except: Deferred income, Provisions for non-personnel expenses, Provisions for other
employees-related liabilities, Provision for unused annual holidays, Other regulatory liabilities, Other.
35. PROVISIONS
31.12.2024
31.12.2023
Provision for restructuring
41,825
64,050
Provision for retirement benefits and similar obligations
24,187
20,181
Expected credit losses of contingent liabilities
156,861
141,931
Provisions for litigation and claims
1,696,299
1,282,655
Other provisions
49,554
31,544
Total provisions
1,968,726
1,540,361
Change in restructuring provisions
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
64,050
45,843
Provisions recognition
142
51,012
Provisions utilization
(22,367)
(14,387)
Provisions release
-
(18,418)
Closing balance
41,825
64,050
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Change in provisions for retirement benefits and similar obligations
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
20,181
18,547
Provisions recognition
5,652
6,393
Provisions utilization
(696)
(539)
Provisions release
(950)
(4,220)
Closing balance
24,187
20,181
Change in expected credit losses to contingent liabilities
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
141,931
99,657
Provisions recognition
65,468
60,899
Provisions release
(64,916)
(15,220)
Changes resulting from changes in credit risk (net)
13,305
(419)
Other changes
1,073
(2,986)
Closing balance
156,861
141,931
Change in provisions for litigation and similar liabilities
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
1,282,655
642,487
Provisions recognition
617,548
624,480
Provisions utilization
(173,159)
(108,579)
Provisions release
(7,374)
(34,580)
Other changes, including foreign exchange differences
(23,371)
158,847
Closing balance
1,696,299
1,282,655
As at 31 December 2024 the balance of provisions for litigation and similar liabilities consisted of the following: provisions for
litigation related to CHF mortgage loans in the amount of PLN 1,564,168 thousand, provisions for reimbursement of commissions
for early repayment of loans in the amount of PLN 49,832 thousand and provisions for other litigation and similar liabilities in the
amount of PLN 82,300 thousand.
As at 31 December 2023 the balance of provisions for litigation and similar liabilities consisted of the following: provisions for
litigation related to CHF mortgage loans in the amount of PLN 1,149,430 thousand, provisions for reimbursement of commissions
for early repayment of loans in the amount of PLN 56,805 thousand and provisions for other litigation and similar liabilities in the
amount of PLN 76,420 thousand.
Change in other provisions
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
31,951
8,290
Provisions recognition
18,055
30,101
Provisions utilization
(45)
(21)
Provisions release
(407)
(6,419)
Closing balance
49,554
31,951
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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83
36. DEFERRED INCOME TAX
Changes in deferred income tax in the financial year:
Deferred tax assets
Deferred tax
basis as at
31 December
2024
Deferred tax
basis as at
31 December
2023
Charge arising
from changes in
asset
in 2024
Outstanding interest accrued on liabilities, including CD interest and
discount
980,389
953,003
5,203
Fair value measurement of derivative instruments and securities
2,261,856
2,621,989
(68,425)
Unrealized liabilities due to hedged items and hedging instruments
33,001
26,536
1,228
Allowances on expected credit losses of financial assets and
provisions for contingent liabilities (non-deductible), which are
probable to occur/documented
2,326,731
2,423,125
(18,315)
Provision for retirement benefits and provision for restructuring
64,597
81,130
(3,141)
Other provisions for personnel costs
297,325
279,304
3,424
Provisions for non-personnel expenses
657,851
569,756
16,738
Impairment allowance on fixed and intangible assets
8,764
15,243
(1,231)
Impairment of subsidiaries and associates
17,566
19,780
(421)
Compensations paid
5,947
8,795
(541)
Impairment allowance on lease receivables
9,456
3,409
1,149
Impairment allowance on available for sale assets related to leasing
operations
17,514
31,324
(2,624)
Surplus of the tax value of leased fixed assets over the book value
of receivables
54,508
66,879
(2,350)
Deferred income from leasing operations
11,485
11,539
(10)
Lease liabilities
608,120
628,063
(3,789)
Impairment allowances on other assets
52,021
54,036
(383)
Valuation of securities measured through other comprehensive
income
731,116
763,988
(6,246)
Provisions for legal risk related to foreign currency loans*
958,295
133,799
156,654
Other negative deductible temporary differences
24,155
11,447
2,415
Total:
9,120,697
8,703,145
79,335
*For details, see Note 53 Litigation, claims and administrative proceedings.
Basis for assets recognised in profit or loss (in the current and
preceding years) and charge arising from changes in asset**
8,389,581
7,939,157
85,581
Basis for assets recognised in correspondence with revaluation
reserve and charge arising from changes in asset
731,116
763,988
(6,246)
**Unrecognised deferred tax asset is related to impairment allowances on loans and advances whose non-recoverability will not
become probable in the future. The related unrecognised temporary differences amounted to PLN 21,498 thousand as at 31
December 2024 as compared to PLN 22,067 thousand as at 31 December 2023.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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84
Deferred tax liability
Deferred tax
basis as at 31
December 2024
Deferred tax
basis as at 31
December 2023
Charge arising
from changes in
asset in 2024
Accrued revenue from interest on amounts due
(1,615,597)
(1,456,894)
(30,154)
Fair value measurement of derivative instruments and securities
(1,992,968)
(2,224,562)
44,003
Valuation of securities measured through other comprehensive
income
(59,806)
(59,027)
(148)
Revenue collected in advance and measured at amortised cost
including the effective interest rate
(192,924)
(38,345)
29,370
Difference between accounting and tax depreciation of the Bank’s
own fixed assets
(446,966)
(453,709)
1,281
Net value of right of use (RoU)
(542,193)
(557,802)
2,966
R&D expenses
(109,864)
(93,840)
(3,045)
Subleasing agreements
(22,510)
(27,036)
860
Unrealized liabilities related to hedged items and hedging
instruments
(515,815)
(574,232)
11,099
Deferred costs of leasing operations
(10,147)
(12,355)
420
Other positive taxable temporary differences
(3,306)
(5,004)
323
Total:
(5,512,096)
(5,502,806)
(1,765)
Basis for the provision recognised in profit or loss (in the current and
preceding years) and chargé arising from changes in the provision
(5,448,984)
(5,438,775)
(1,940)
Basis for the provision charged to revaluation reserve and chargé
arising from changes in the provision
(63,112)
(64,031)
175
31.12.2024
31.12.2023
Deferred tax assets
1,732,932
1,653,598
Deferred tax liability
(1,047,298)
(1,045,534)
Net deferred tax asset
685,634
608,064
37. DISCONTINUED OPERATIONS
The Bank did not discontinue any operations in 2024 or 2023.
38. SHARE BASED PAYMENTS
The Bank has adopted the “Remuneration policy for individuals with a material impact on the risk profile of BNP Paribas S.A.".
The principles and assumptions contained in the Policy guarantee the existence of a rational, balanced and controllable
remuneration policy, consistent with the accepted risk level, standards and values of the Bank and relevant laws and regulations,
in particular the Minister of Finance, Funds and Regional Policy Regulation dated 8 June 2021 on the risk management system,
internal control system and remuneration policy in banks and recommendations included in the CRD5 Directive.
Pursuant to the Remuneration policy for Individuals with a significant impact on the BNP Paribas S.A. Bank's risk profile applied in
the Bank, from 2020 (excluding persons who have terminated their cooperation with the Bank) the applicable financial instrument
in which part of the variable remuneration is paid is ordinary shares (change from phantom shares).
The 2022 variable remuneration convertible into a financial instrument was granted in actual shares of the Bank.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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On 9 December 2021, the Supervisory Board approved a modified Remuneration Policy for persons with material impact on the
risk profile of the Bank. The changes consisted mainly in adjusting the provisions of the Policy to the Ordinance of the Minister of
Finance, Funds and Regional Policy of 8 June 2021 on the risk management system and internal control system and remuneration
policy in banks and the guidelines contained in the CRD5 Directive and consisted, among others, in extending the deferral period.
Phantom share-based programme
As at 31 December 2019, there was a variable remuneration scheme in force, granted in the form of a financial instrument -
phantom shares, which will be settled in subsequent periods.
The variable remuneration granted in form of phantom shares is paid as cash equivalent with a value corresponding to the number
of shares granted. The payment shall be made after the expiry of the retention period.
Financial instruments (phantom shares) - programme amendments in 2024.
31.12.2024
31.12.2023
units
value (PLN ‘000)
units
value (PLN ‘000)
Opening balance
3,262
203
38,166
2,897
granted in the period
(3,262)
(203)
(34,904)
(1,953)
current valuation*
-
-
-
(741)
Closing balance
-
-
3,262
203
* change in the value of outstanding phantom shares according to the current phantom share exercise price
In the first quarter of 2024, the phantom share-based programme was fully settled.
The table below shows the terms of the 2024 phantom share purchase plan.
Transaction type in line with IFRS 2
Share-based payments settled in cash
Plan issued on
21 June 2012 - the Resolution of the Supervisory Board
approving the Remuneration Policy.
The commencement date for granting phantom shares
29 February 2024
The end date for granting phantom shares
6 March 2024
Programme based on the Bank's shares
There is variable remuneration scheme in place for the Bank's employees with a significant impact on risk profile under the Bank's
share-based programme. The variable remuneration is divided into a part granted in the form of a financial instrument (Bank
shares) and the remaining part granted in cash.
The right to variable remuneration expressed in the form of the Bank's shares is granted by issuing subscription warrants in a
number corresponding to the number of shares granted, one warrant entitles to acquire one share. The payment of the variable
remuneration expressed in the form of the Bank's shares, i.e. taking up the Bank's shares through the exercise of rights from
subscription warrants, takes place after the expiry of the retention period.
The Bank will grant the participants of the Incentive Scheme subscription warrants, which will result in the right to acquire a new
Series M and Series N shares issued by the Bank under the conditional share capital increase. The rights to acquire Series M and
Series N shares shall be granted taking into account the principles of dividing the variable remuneration into the non-deferred and
deferred portions, as defined in the Remuneration Policy and the regulations adopted on its basis. Series M and Series N shares
will constitute a component of variable remuneration for persons having a significant impact on the Bank's risk profile within the
meaning of the Regulation of the Minister of Finance, Funds and Regional Policy of 8 June 2021.
In order to implement the Incentive Programme, the Extraordinary General Meeting of the Bank also adopted resolutions on the
issue of subscription warrants and conditional increase of the share capital through the issue of Series M shares and Series N
shares, depriving the existing shareholders of the subscription right to warrants and to Series M and Series N shares, amending
the Bank's Articles of Association and dematerialising and applying for the admission of Series M and Series N shares to trading
on a regulated market.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The amount and the division into the non-deferred and deferred portions of variable remuneration for employees identified as MRT
is determined in accordance with the Bank's Remuneration Policy and regulations adopted on its basis. The regulations contain
information on the annual bonus levels assigned to particular appraisals:
1. the part constituting at least 50% is assigned in the form of the Bank's shares (which will be acquired by exercising rights from
subscription warrants);
2. the part of variable remuneration not less than 40% of that remuneration is deferred. The deferral period is at least 5 years for
Senior Management and a minimum of 4 years and a maximum of 5 years for employees other than Senior Management.
The maximum deferral period of 5 years is applied in the case of an assignment of Variable Remuneration that exceeds a
particularly high amount.
In order to ensure uniform and lawful conditions for the acquisition of the right to remuneration and its payment, remuneration shall
be paid to persons having a material impact on the risk profile of the Bank taking into account the principles of suitability,
proportionality and non-discrimination.
The Bank's rules include the possibility to withhold or limit the payment of variable remuneration where the Bank does not meet
the combined buffer requirement:
1. The Bank shall be prohibited from paying assigned variable remuneration in excess of the maximum amount to be paid (the
so-called MDA) in a situation where the Bank does not meet the combined buffer requirement within the meaning and under
the rules set out in Articles 55 and 56 of the Act on macro-prudential supervision.
2. In the event when the Bank does not meet the combined buffer requirement, then before the MDA is calculated, the Bank:
● does not undertake commitments to pay variable remuneration or discretionary pension benefits;
● does not make variable remuneration payments if the obligation to pay them arose during the period in which the Bank
did not meet the combined buffer requirement.
If the legal relationship between the Bank and a given person having a material impact on the Bank's risk profile ceases to exist or
if the position is excluded from the list, the remuneration is paid provided that the requirements specified in the Remuneration
Policy for persons having a material impact on the risk profile of BNP Paribas Bank Polska S.A. are met.
A person is entitled to variable remuneration, provided that he/she has not been charged and is not subject to criminal or disciplinary
sanctions.
In 2024, for the variable remuneration granted for 2019, 2020, 2021, 2022 and 2023 and in connection with the forecast of the
variable remuneration for 2024, which will be granted in 2025, in the part concerning shares to be issued in the future, the Bank
has recognized in the capitals an amount of PLN 6,397 thousand. At the same time, an amount of PLN 26,046 thousand
(recognised in the previous years) is presented in capital.
Financial instruments (shares - deferred portion) changes in 2024 and 2023 determined in relation to the deferred part of the
variable remuneration for 2019, 2020, 2021, 2022 and 2023 are presented in the table below.
31.12.2024
31.12.2023
units
value (PLN ‘000)
units
value (PLN ‘000)
Opening balance
142,158
8,750
121,760
8,487
granted in the period
34,426
3,412
57,711
2,802
executed during the period
(44,608)
(3,075)
(37,151)
(2,528)
expired in the period
-
-
(162)
(11)
Closing balance
131,976
9,087
142,158
8,750
The table below presents the terms and conditions of the Share/Warrants Purchase Plan for 2024.
Type of transaction under IFRS 2
Share-based payments
Program announcement date
31 January 2020 – the Resolution of the Supervisory Board
approving the Remuneration Policy.
The commencement date for granting of shares
29 February 2024
The end date for granting shares
2 April 2024
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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39. CONTINGENT LIABILITIES
The following table presents the value of liabilities granted and received by the Bank.
Contingent liabilities
31.12.2024
31.12.2023
Contingent commitments granted
34,611,132
48,859,712
Financial commitments
22,111,126
33,355,151
Guarantees
12,500,006
15,504,561
Contingent commitments received
55,172,867
57,137,307
Financial commitments
551,870
8,176,478
Guarantees
54,620,997
48,960,829
In 2024, the Bank conducted an analysis of the existing contingent liabilities granted and received in terms of contractual provisions
allowing for the unconditional revocation of these obligations. As a result of the analysis, it was found that for some of the exposures
previously presented in contingent liabilities granted and received, it is possible to unconditionally revoke these obligations.
Therefore, starting from 2024, the disclosure of these items in the context of contingent liabilities has been discontinued.
The amount of contingent liabilities granted as at 31 December 2024 equals PLN 18,152,339 thousand (PLN 20,996,915 thousand
as at 31 December 2023), while the amount of contingent liabilities received by the Bank as at 31 December 2024 equals PLN
49,217,162 thousand (PLN 50,724,039 thousand as at 31 December 2023).
40. COLLATERALS
The Bank had the following assets pledged as collaterals for payment of its own and third-party liabilities.
Assets of the Bank pledged as collaterals
The table below presents the balance sheet value of financial assets that have been established as collateral for contracted
liabilities or contingent liabilities.
Assets pledged as collaterals
31.12.2024
31.12.2023
Guaranteed amount protection fund – Bank Guarantee Fund (BFG)
type of collateral
Treasury bonds
Treasury bonds
nominal value of collateral
360,000
270,000
balance sheet value of collateral
348,772
265,254
maturity
21.07.2033
22.09.2025
type of collateral
-
Treasury bonds
nominal value of collateral
-
100,000
balance sheet value of collateral
-
96,987
maturity
-
21.07.2033
Collateral for derivative transaction settlement
type of collateral
call deposits
call deposits
nominal value of collateral
736,339
741,002
Securities sold subject to repurchase agreements (repo transactions)
balance sheet value of collateral
23,722
-
fair value of collateral
23,597
-
Collateral pledged over customer assets
The Bank has not established collateral on customer assets that may be sold or pledged.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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41. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Based on the methods used to determine fair value, the Bank classifies particular assets and liabilities into the following categories:
Level 1
Assets and liabilities measured on the basis of market quotations available on active markets for identical instruments.
Level 2
Assets and liabilities measured using valuation techniques based on directly or indirectly observed market quotations or other
information based on market quotations.
Level 3
Assets and liabilities measured using valuation techniques where input data is not based on observable market data.
The Bank periodically (at least quarterly) assigns individual assets and liabilities to particular levels of the fair value hierarchy. The
basis for classification to particular levels of the valuation hierarchy is the input data used for the valuation, i.e. market quotes or
other information. The lowest level of input data used for the valuation, having a significant impact on determining the fair value,
determines the classification of an asset or liability to a particular hierarchy level.
If the input data is changed to data classified to another level, e.g. as a result of changes in the valuation methodology or changes
in market data sources, the Bank transfers the asset or liability to the appropriate level of measurement in the reporting period in
which the change occurred.
In 2024 and 2023, no changes were made to the rules for classification into valuation levels.
As at 31 December 2024, particular instruments were included in the following valuation levels:
1) the first level: Treasury bonds and bonds issued by European Investment Bank (fair value is determined directly by reference
to published active market quotations), quoted shares;
2) the second level: bonds issued by PFR, interest rate options in EUR, USD and GBP, FX options maturing within 2 years,
base interest rate and FX swaps denominated in G7 currencies maturing within 15 years, and base interest rate and FX
swaps denominated in other currencies maturing within 10 years, FRA maturing within 2 years, FX Forward, NDF and FX
swaps denominated in G7 currencies maturing within 10 years, FX Forward transactions, NDF and FX swaps denominated
in other currencies maturing within 3 years, commodity swaps maturing within 1 year, interest rate swaps denominated in G7
currencies, interest rate swaps denominated in other currencies maturing within 10 years, structured instruments (whose fair
value is determined using measurement techniques which are based on available, verifiable market data);
3) the third level: interest rate options in PLN, FX options maturing over 2 years, base interest rate and FX swaps denominated
in G7 currencies maturing over 15 years, base interest rate and FX swaps denominated in other currencies maturing over 10
years, FRA contracts maturing over 2 years, FX Forward transactions, NDF and FX swaps denominated in G7 currencies
maturing over 10 years, FX Forward transactions, NDF and FX swaps denominated in other currencies maturing over 3
years, commodity swaps maturing over 1 year, interest rate swaps denominated in other currencies than G7 currencies
maturing over 10 years, structured instruments (whose fair value is determined using measurement techniques (models)
which are not based on available, verifiable market data), derivatives for which significant Fair Value Correction or Credit
Value Adjustment was created and corporate bonds other than CATALYST-listed ones, shares which are not listed on the
WSE and other exchanges, subsidised loans (fair value determined using measurement techniques which are not based on
available, verifiable market data, i.e. in cases other than those described in 1 and 2).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The table below presents classification of assets and liabilities measured at fair value in the separate financial statements into
three categories:
31.12.2024
Level 1
Level 2
Level 3
Total
Assets measured at fair value
23,028,091
2,607,196
836,739
26,472,026
Derivative financial instruments
-
2,297,901
142,215
2,440,116
Hedging instruments
-
231,025
-
231,025
Securities measured at fair value through other
comprehensive income
23,027,454
-
-
23,027,454
Securities measured at fair value through profit or loss
637
78,270
242,018
320,925
Loans and advances to customers measured at fair
value through profit or loss
-
-
452,506
452,506
Liabilities measured at fair value
-
3,015,629
137,825
3,153,454
Derivative financial instruments
-
2,173,916
137,825
2,311,741
Hedging instruments
-
841,713
-
841,713
31.12.2023
Level 1
Level 2
Level 3
Total
Assets measured at fair value
16,634,721
2,786,082
1,387,057
20,807,860
Derivative financial instruments
-
2,644,854
501,891
3,146,745
Hedging instruments
-
82,343
-
82,343
Securities measured at fair value through other
comprehensive income
16,634,303
-
-
16,634,303
Securities measured at fair value through profit or loss
418
58,885
231,584
290,887
Loans and advances to customers measured at fair
value through profit or loss
-
-
653,582
653,582
Liabilities measured at fair value
-
3,304,198
439,609
3,743,807
Derivative financial instruments
-
2,499,387
365,888
2,865,275
Hedging instruments
-
804,811
73,721
878,532
In 2024 and 2023, no events of a change in valuation level from 1 to 2, 1 to 3, 2 to 1, 2 to 3 and 3 to 1 were recorded.
In 2024, there were 188 events of derivatives for which the valuation level changed from 3 to 2. In all cases, this was due to a
shortening of the time to maturity of the transaction (in 2023, 225 cases due to a shortening of the time to maturity of the
transaction).
The following table shows the valuation of these transactions at the beginning and end of the reporting period:
31.12.2024
Derivative financial
instruments
- assets
Derivatives financial
instruments
- liabilities
Opening balance
437,535
357,502
Closing balance
492,288
412,763
31.12.2023
Derivative financial
instruments
- assets
Derivatives financial
instruments
- liabilities
Opening balance
215,374
196,258
Closing balance
236,696
288,076
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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90
The fair value of level 2 and 3 financial instruments is determined using the measurement techniques consistent with market
practice, the parameterisation of which is carried out on the basis of reliable data sources. Valuation techniques used include
valuation models (e.g., Black-Scholes), cash flow discounting, and estimation of volatility planes.
The input data used for purposes of valuation of level 2 and 3 instruments include foreign exchange rates, yield curves, reference
rates, changes in foreign exchange rates, reference rates, stock market indices and stock prices, swap points, basis spreads,
stock market index values and futures prices.
For financial instruments classified as level 3, unobservable parameters are estimates including market quotes that are not
observable and cannot be corroborated by observable data in commonly quoted ranges, margins for credit risk and liquidity risk,
probabilities of default, recovery rates, and premiums and discounts covering other risks specific to the instrument being valued.
The table presented below shows changes in the measurement of level 3 assets and liabilities as well as amounts charged to profit
and loss account.
12 months ended 31.12.2024
Derivative financial
instruments –
assets
Financial assets
measured at fair
value
Derivative financial
instruments –
liabilities
Hedging
instruments -
liabilities
Opening balance
501,891
885,166
365,888
73,721
Total gains/losses recognised in:
(359,676)
24,357
(228,063)
(73,721)
statement of profit or loss
(359,676)
24,357
(228,063)
(73,721)
Purchase
-
2,258
-
-
Sale
-
(2,031)
-
-
Settlement/expiry
-
(215,171)
-
-
Iimpairment losses
-
(55)
-
-
Closing balance
142,215
694,524
137,825
-
Unrealized gains/losses recognised
in profit or loss related to assets and
liabilities at the end of the period
(359,676)
24,357
(228,063)
(73,721)
12 months ended 31.12.2023
Derivative financial
instruments –
assets
Financial assets
measured at fair
value
Derivative financial
instruments –
liabilities
Hedging
instruments -
liabilities
Opening balance
266,207
1,185,674
262,516
115,074
Total gains/losses recognised in:
235,684
(1,341)
103,372
(41,353)
statement of profit or loss
235,684
(1,341)
103,372
(41,353)
Purchase
-
30,103
-
-
Settlement/expiry
-
(329,270)
-
-
Closing balance
501,891
885,166
365,888
73,721
Unrealized gains/losses recognised
in profit or loss related to assets and
liabilities at the end of the period
235,684
(1,341)
103,372
(41,353)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The table presented below shows the effect of unobservable factors on the value of financial instruments classified to level three.
31.12.2024
31.12.2023
Instrument type
fair value according to
fair value according to
positive scenario
negative scenario
positive scenario
negative scenario
Derivatives
1
5,347
10,588
66,431
62,830
Commercial bonds
2
66,323
65,658
68,707
67,866
Stocks and shares
3
169,605
153,452
162,231
146,780
Loans
4
457,479
447,578
660,339
646,936
1
scenario: rating change of +3/-3 notches
2
scenario: change in credit spread by -50bp/+50bp
3
scenario: change in valuation of +5%/-5%
4
scenario: change in discount rate by -50bp/+50bp
The Bank measures the fair value by discounting all contractual cash flows related to transactions, with the use of yield curves
characteristic of each transaction group. Where no repayment schedule is agreed for a product, it is assumed that the fair value is
equal to the carrying amount of the transaction, or, in case of revolving products, the curves derived from the liquidity profile of
these products and the expected behavioural duration of these exposures are used.
The yield curve used for fair value measurement of liabilities (such as customer and interbank deposits) and receivables (such as
loans to customers and interbank deposits) of the Bank comprises:
● the credit risk free yield curve,
● the cost of obtaining financing above the credit risk free yield curve,
● the market margin that reflects credit risk for receivables.
The yield curve for fair value measurement of loans is constructed through classification of loans into sub-portfolios depending on
the product type and currency as well as customer segmentation. A margin is determined for each sub-portfolio taking into account
credit risk. The margin is determined with the use of credit risk parameters of a given customer determined in the process of
calculating the impairment of financial instruments.
The current credit risk margin and the current liquidity margin, the values of which are not quoted on an active market, are the non-
observable parameters for all the categoris.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The following table presents the book value and fair value of those financial assets and liabilities that are not reported in the Bank's
statement of financial position at their fair value, as well as the level of valuation classification.
31.12.2024
Book value
Fair value
Level
Financial assets
Cash and balances at Central Bank
11,325,551
11,325,551
3
Amounts due from other banks
7,789,297
7,413,534
3
Loans and advances to customers measured at
amortised cost
81,189,258
80,687,335
3
Securities measured at amortised cost
32,364,550
30,365,556
1.3
Other financial assets
961,750
961,750
3
Investments in subsidiaries
108,426
108,426
3
Financial liabilities
Amounts due to other banks
5,757,872
6,317,487
2.3
Amounts due to customers
130,830,128
130,124,764
3
Subordinated liabilities
3,420,128
3,879,943
3
Lease liabilities
606,204
606,204
3
Other financial liabilities
1,033,656
1,033,656
3
31.12.2023
Book value
Fair value
Level
Financial assets
Cash and balances at Central Bank
6,883,582
6,883,582
3
Amounts due from other banks
17,890,698
17,126,326
2.3
Loans and advances to customers measured at
amortised cost
81,137,225
80,630,080
3
Securities measured at amortised cost
26,246,278
24,303,218
1.3
Other financial assets
530,619
530,619
3
Investments in subsidiaries
118,726
118,726
3
Zobowiązania finansowe
Amounts due to other banks
4,571,172
5,271,788
2.3
Amounts due to customers
127,134,065
126,221,912
3
Subordinated liabilities
4,336,072
5,038,080
3
Lease liabilities
626,174
626,174
3
Other financial liabilities
1,058,441
1,058,441
3
1) Amounts due from banks and amounts due to banks
Amounts due from banks and amounts due to banks include interbank deposits and interbank settlements. The fair value of
fixed and floating rate deposits/placements is based on discounted cash flows determined by reference to money market
interest rates for items with similar credit risk and residual maturity.
2) Loans and advances to customers
The estimated fair value of loans and advances is the discounted value of future cash flows to be received, using the current
market rates adjusted by financing cost and by actual or estimated credit risk margins.
The fair value of loans and advances covered by the Law on Community Financing for Business Ventures and Borrower
Assistance takes into account the impact of changes in repayment schedules resulting from the introduction of loan vacations.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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3) Securities measured at amortised cost
The fair value of securities measured at amortised cost was determined by reference to the published quoted prices in an
active market for quoted securities (first level of measurement or a second level in case of reduced liquidity). However, for
unquoted securities, fair value was determined using valuation techniques not based on available market data (third level of
measurement).
4) Liabilities due to subordinated loan
Liabilities include subordinated loans. The fair value of the floating rate loan is based on discounted cash flows determined by
reference to money market interest rates for items with similar credit risk and residual maturity.
5) Liabilities due to customers
The fair value of fixed and floating rate deposits is based on discounted cash flows determined by reference to money market
interest rates adjusted by the actual cost of securing funds over the past three months. For demand deposits, it is assumed
that the fair value is equal to their carrying amount.
6) Lease liabilities
The fair value of lease liabilities was determined as equal to their balance sheet value.
Compensation of financial assets and liabilities
31.12.2024
Gross value
presented in
financial
assets/liabilities
Net value
presented in
financial
assets/liabilities
Offsetting value
under concluded
contracts
Cash collateral
value
Net value
Financial assets
Trading and hedging derivatives
2,671,141
2,671,141
(1,310,127)
(1,055,624)
305,391
Total
2,671,141
2,671,141
(1,310,127)
(1,055,624)
305,391
Financial liabilities
Trading and hedging derivatives
3,153,454
3,153,454
(1,310,127)
(736,339)
1,106,988
Total
3,153,454
3,153,454
(1,310,127)
(736,339)
1,106,988
31.12.2023
Gross value
presented in
financial
assets/liabilities
Net value
presented in
financial
assets/liabilities
Offsetting value
under concluded
contracts
Cash collateral
value
Net value
Financial assets
Trading and hedging derivatives
3,229,088
3,229,088
(1,584,123)
(1,258,473)
386,492
Total
3,229,088
3,229,088
(1,584,123)
(1,258,473)
386,492
Financial liabilities
Trading and hedging derivatives
3,743,807
3,743,807
(1,584,123)
(736,133)
1,423,551
Total
3,743,807
3,743,807
(1,584,123)
(736,133)
1,423,551
The possibility to compensate receivables and liabilities which are not due as well as settlement in the net amount in case of early
settlement of the contract, result from the provisions of framework agreements / ISDA concluded with the customers.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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42. LOAN PORTFOLIO SALE
In 2024, the Bank concluded agreements for the sale of the retail, SME and corporate loan portfolio.
The gross carrying amount of the sold portfolio measured at amortised cost was PLN 430,520 thousand, the amount of impairment
allowances created was PLN 291,643 thousand.
The contractual price for the sale of these portfolios was set at PLN 198,143 thousand. The net impact on the Bank's result due to
the sale of portfolios amounted to PLN 59,266 thousand and is presented in the line Net allowances on expected credit losses of
financial assets and provisions for contingent liabilities
43. SECURITIZATION
On 28 March 2024, the Bank entered into an agreement with the International Finance Corporation (‘IFC’, ‘Investor’) for a synthetic
securitisation transaction executed on a portfolio of corporate loans/loans with a total value of PLN 2,180,097 thousand as at 31
December 2023. The main purpose of the transaction is to release capital that the Bank will use to finance climate projects (climate
change mitigation projects focusing mainly on renewable energy, energy efficiency and green project financing).
As part of the transaction, the Bank transferred a significant part of the credit risk from the selected securitised portfolio to the
Investor. The securitised selected loan portfolio remains on the Bank's books.
As at 31 December 2024, the value of the transaction portfolio included in the balance sheet and off-balance sheet amounted to
PLN 876,049 thousand.
The closing date of the transaction according to the agreement is 31 December 2031.
The risk transfer of the securitised portfolio is implemented through a credit protection instrument in the form of a financial
guarantee issued by the Investor up to PLN 86,288 thousand as at 31 December 2024. Costs on account of this guarantee are
presented in Commission expenses - Guarantee commitments and documentary operations.
As at 31 December 2024, the conclusion of the Transaction has the effect of increasing the separate Common Equity Tier 1 (CET1)
and Tier 1 capital ratio by 0.08 p.p. and the separate total capital ratio (TCR) by 0.11 p.p. in relation to the BNP Paribas Bank
Polska S.A. reported data.
The Transaction meets the material risk transfer requirements of the CRR Regulation and has been structured as meeting the STS
criteria (simple, transparent and standard securitisation) under Regulation 2021/557.
The Bank acted as facilitator of the Transaction.
44. CUSTODY OPERATIONS
The Bank conducts custody operations consisting in maintaining assets or client transactions settlement. These assets have not
been disclosed in the financial statements as they do not belong to the Bank.
As at 31 December 2024, the Custody Services Office conducted 146 securities accounts for the clients. The fair value of the
financial instruments of the customers of the Custody Services Office for this date was PLN 25,315,376 thousand.
In the reporting period, securities in public trading and securities in material form as well as financial instruments traded in foreign
markets were stored by the Bank. In providing custody services to clients, the Bank cooperated with several brokerage houses
and central securities depositories. The Bank acts as a depository for domestic investment funds.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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45. THE SHAREHOLDER’S STRUCTURE OF BNP
PARIBAS BANK POLSKA S.A.
The table below shows the Bank's shareholding structure as at 31 December 2024, including those holding at least 5% of the total
number of votes at the General Meeting of Shareholders:
Shareholders
Number of
shares
Percentage
share in the
share capital
Number of votes
at the General
Shareholders’
Meeting
Percentage
share in the
total number of
votes at the
General
Shareholders’
Meeting
BNP Paribas, in total:
120,124,392
81.28%
120,124,392
81.28%
BNP Paribas directly
84,634,166
57.26%
84,634,166
57.26%
BNP Paribas Fortis SA/NV directly
35,490,226
24.01%
35,490,226
24.01%
Other shareholders
27,675,478
18.72%
27,675,478
18.72%
Total
147,799,870
100.00%
147,799,870
100.00%
* Financial data have been rounded, and therefore, in some cases, the totals may not correspond exactly to the total sum.
As of 31 December 2024, the Bank's share capital amounted to PLN 147,800 thousand.
The share capital is divided into 147,799,870 shares with the par value of PLN 1.00 each, including: 15,088,100 A series shares,
7,807,300 B series shares, 247,329 C series shares, 3,220,932 D series shares, 10,640,643 E series shares, 6,132,460 F series
shares, 8,000,000 G series shares, 5,002,000 H series shares, 28,099,554 I series shares, 2,500,000 J series shares, 10,800,000
K series shares, 49,880,600 L series shares, 302,636 M series shares and 78,316 N series shares.
Four B series registered shares in the Bank are preference shares with respect to payment of the full par value per share in the
event of the Bank’s liquidation, once the creditors’ claims have been satisfied, with priority over payments per ordinary shares,
which, after the rights attached to the preference shares have been exercised, may be insufficient to cover the total par value of
those shares.
The total number of votes resulting from all the Bank's shares is 147,799,870 votes. The number of votes resulting from the M
series shares granted is 44,608 votes and from the N series shares granted is 78,316 votes.
The amount of the conditional share capital increase after the issue of M and N series shares is PLN 1,395,048.
Intention of BNP Paribas regarding the liquidity of the Bank's shares
In accordance with the information received from BNP Paribas S.A. - the Bank's main shareholder – BNP Paribas SA declares its
intention to increase the number of the Bank's free float shares to at least 25% in the future.
Changes in shareholder structure in 2024
On 14 March 2024, share block transactions were concluded in connection with the completion of the accelerated book building
process (ABB) concerning the sale of 8,860,616 Bank shares by BNP Paribas SA, the Bank's main shareholder.
Following the settlement of the above transactions and the settlement of other transactions made on the regulated market
concerning 6,545 Bank shares, the share of BNP Paribas SA in the total number of votes at the Bank's General Meeting of
Shareholders decreased by approximately 6%. BNP Paribas SA directly holds 84,634,166 shares in the Bank representing (as at
31 December 2024) approximately 57.26% of the total number of shares and votes in the Bank, and together with other entities of
the BNP Paribas SA Group controls a total of 120,124,392 shares in the Bank representing (as at 31 December 2024)
approximately 81.28% of the total number of shares and votes in the Bank.
On 5 April 2024, the Bank's share capital was increased from PLN 147,676,946 to PLN 147,799,870 as a result of the subscription
of 44,608 series M shares and 78,316 series N shares (a total of 122,924 Bank shares with a total nominal value of PLN 122,924)
in execution of rights from previously subscribed registered subscription warrants of series A4 and B1 respectively.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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BNP Paribas Bank Polska shares held by the members of the Supervisory Board and Management Board
Summary of the holdings of Bank shares and share entitlements by members of the Bank's Management Board and Supervisory
Board as at the date of submission of the report for 2024 (13 March 2025) and the Financial statements for the three quarters of
2024 (8 November 2024) is presented below.
MEMBER OF THE BANK'S
MANAGEMENT BOARD
SHARES
SUBSCRIPTION
WARRANTS
1
SALE OF
SHARES
SHARES
SUBSCRIPTION
WARRANTS
1
8.11.2024
8.11.2024
13.03.2025
13.03.2025
Przemysław Gdański
39,366
8,280
-
39,366
8,280
André Boulanger
-
5,953
-
-
5,953
Małgorzata Dąbrowska
-
-
-
-
-
Wojciech Kembłowski
-
3,671
-
-
3,671
Piotr Konieczny
-
455
-
-
455
Magdalena Nowicka
-
2,392
-
-
2,392
Volodymyr Radin
-
1,364
-
-
1,364
Agnieszka Wolska
4,095
2,443
-
4,095
2,443
MEMBER OF THE BANK'S
MANAGEMENT BOARD
SHARES
SUBSCRIPTION
WARRANTS
1
SALE OF
SHARES
SHARES
SUBSCRIPTION
WARRANTS
1
8.11.2024
8.11.2024
13.03.2025
13.03.2025
Jean-Charles Aranda
-
1,828
-
-
1,828
1) A5 series subscription warrants taken up on 21.03.2024. - one A5 series warrant entitles to acquire one M series ordinary bearer share of BNP
Paribas Bank Polska S.A., at the issue price of PLN 1.00 per share and B2 series - one B2 series warrant entitles to take up one N series ordinary
bearer share of BNP Paribas Bank Polska S.A., at the issue price of PLN 1.00 per share.
The other members of the Supervisory Board did not declare their ownership of the Bank's shares/entitlements as of 13 March
2025, which has not changed since the date of submission of the Financial statements for the three quarters of 2024 (8 November
2024).
46. SUPLEMENTARY CAPITAL AND OTHER CAPITALS
The following tables present changes in supplementary capital and other reserve capitals:
Supplementary capital
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
9,110,976
9,110,976
Changes
-
-
Closing balance
9,110,976
9,110,976
Other reserve capitals
31. December 2024
31. December 2023
General banking risk fund
627,154
627,154
Other reserve capital
3,397,051
2,886,824
Total
4,024,205
3,513,978
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Revaluation capital
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
(566,964)
(1,150,000)
Gain/loss on changes in fair value of financial assets measured through
other comprehensive income
43,787
653,872
Net gain/loss on change in fair value of gross cash flow hedging derivatives
(10,138)
67,303
Actuarial valuation of employee benefits
(1,698)
(1,377)
Deferred income tax
(6,071)
(136,762)
Closing balance
(541,084)
(566,964)
Other reserve capital
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
2,886,824
2,509,445
Distribution of retained earnings
503,830
370,892
Management stock options
6,397
6,487
Closing balance
3,397,051
2,886,824
AT1 Capital bonds
12 months ended
31.12.2024
12 months ended
31.12.2023
Opening balance
-
-
Value of AT1 Capital bonds issues
650,000
-
Closing balance
650,000
-
The Bank issued the AT 1 capital bonds referred to in Article 27a of the Bond Act of 15 January 2015 (‘AT1 Capital Bonds’), which
were acquired by BNP Paribas SA, Paris, on 28 November 2024. The total nominal value of the AT1 Capital Bonds issued was
PLN 650,000 thousand and the nominal value of one AT1 Capital Bond is PLN 500 thousand. The AT1 Capital Bonds bear interest
at a variable rate, being the sum of the reference rate Wibor 3M and a margin. The interest rate was set at market terms. AT1
Capital Bonds are instruments without a specified redemption date, entitling to receive interest for an indefinite period, provided
that the Bank will be able to redeem them earlier on the terms specified in the terms of issue. The terms and conditions of the
issue of the Capital Bonds do not provide for the possibility of conversion into Bank shares, but only the possibility of their
redemption in the form of a temporary write-down in the event of the CET1 ratio falling below the contractual reference value.
Retained earnings
12 months
to 31.12.2024
12 months
to 31.12.2023
Opening balance
(400,786)
(400,786)
Transfer from current period profits
-
-
Closing balance
(400,786)
(400,786)
Change in revaluation reserve on financial
assets measured through other
comprehensive income
2024
2023
Gross value
Deferred tax
Gross value
Deferred tax
Opening balance
(704,959)
133,942
(1,426,134)
270,966
gains/losses on financial assets measured at
fair value through other comprehensive income
recognised in equity
23,058
(4,381)
722,929
(137,357)
reclassification to financial result due to sale of
financial assets measured at fair value through
other comprehensive income
10,591
(2,012)
(1,754)
333
Closing balance
(671,310)
127,549
(704,959)
133,942
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
98
47. DIVIDENDS PAID
The Bank's General Meeting of Shareholders on 16 April 2024 adopted a resolution on the payment of dividends from the net profit
made in 2023. On the basis of this resolution, the Bank paid a dividend of PLN 503,997,556.70, i.e. PLN 3.41 per share, on 10
May 2024. The dividend covers all shares issued by the Bank, i.e. 147,799,870 shares.
It is the Bank's intention, in accordance with the dividend policy adopted by the Supervisory Board on 9 December 2021, to make
stable dividend payments to shareholders in the long term while maintaining the principle of prudent management of the Bank and
the Bank Group in accordance with the requirements of the law and the PFSA's positions on the assumptions of the dividend policy
of commercial banks.
The Bank's intention is to pay dividends in 2025 from the net profit earned for 2024. Pursuant to Article 395 § 2(2) of the Commercial
Companies Code, the decision on the distribution of profit remains within the competence of the Bank's General Meeting of
Shareholders.
48. DISTRIBUTION OF RETAINED EARNINGS
In accordance with the Resolution No. 7 of the General Meeting of Shareholders of BNP Paribas Bank Polska S.A. dated 16 April
2024 on distribution of the profit of BNP Paribas Bank Polska S.A. and payment of a dividend for the financial year 2023 from the
net profit generated in 2023 in the amount of PLN 1,007,827,538.15 (one billion seven million eight hundred twenty seven thousand
five hundred and thirty-eight zlotys and fifteen groszy) the Bank paid dividend in the amount of PLN 503,997,556.70 and remaining
part in the amount of PLN 503,829,981.45 was allocated to the reserve capital.
49. CASH AND CASH EQUIVALENTS
For the purpose of preparation of the statement of cash flows, the balance of cash and cash equivalents comprises the following
balances with maturity shorter than three months.
Cash and cash equivalents
31.12.2024
31.12.2023
Cash and balances at Central Bank (Note 17)
11,325,551
6,883,582
Current accounts of banks and other receivables
6,824,291
8,917,690
Interbank deposits
60,009
-
Total cash and cash equivalents
18,209,851
15,801,272
50. ADDITIONAL INFORMATION REGARDING THE
STATEMENT OF CASH FLOWS
Changes in amounts due from banks (including amounts due from
Central Bank and cash)
31.12.2024
31.12.2023
Change arising from the balance sheet
5,659,432
(10,346,456)
Elimination of a change in cash and cash equivalents
2,408,579
2,674,665
Change in balance arising from interest
(2,957)
1,624
Total change in amounts due from banks
8,065,054
(7,670,167)
Change in amounts due from customers measured at amortised cost
31.12.2024
31.12.2023
Change arising from the balance sheet
(52,033)
1,347,578
Change in balance arising from interest
(65,096)
1,408,585
Total change in amounts due from customers measured at amortised
cost
(117,129)
2,756,163
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
99
Change in amounts due to banks (including the Central Bank)
31.12.2024
31.12.2023
Change arising from the balance sheet
1,115,773
2,749,713
Repayment of long-term loans received
(1,148,623)
(369)
Taking long-term loans from other banks
607,632
-
Total change in amounts due to other banks
574,782
2,749,344
Change in amounts due to customers
31.12.2024
31.12.2023
Change arising from the balance sheet
3,696,063
6,705,014
Change in balance arising from interest
84,982
(102,502)
Total change in amounts due to customers
3,781,045
6,602,512
Cash flows from operating activities – other adjustments
12 months ended
31.12.2024
12 months ended
31.12.2023
FX differences from subordinated loans
(30,835)
(81,145)
Valuation of securities recognized in the statement of profit or loss
(49,960)
(153,394)
Allowance for securities
(35)
(40,611)
Other adjustments
20,887
(28,723)
Cash flows from operating activities – total other adjustments
(59,943)
(303,873)
51. RELATED PARTY TRANSACTIONS
BNP Paribas Bank Polska S.A. operates within the BNP Paribas Bank Polska S.A. Capital Group.
BNP Paribas Bank Polska S.A. is the parent in the BNP Paribas Bank Polska S.A. Capital Group.
The ultimate parent company is BNP Paribas S.A., based in Paris.
As of 31 December 2024, the Capital Group of BNP Paribas Bank Polska S.A. comprised BNP Paribas Bank Polska S.A. as the
parent company, and its subsidiaries:
1) BNP PARIBAS TOWARZYSTWO FUNDUSZY INWESTYCYJNYCH S.A. („TFI”).
2) BNP PARIBAS LEASING SERVICES SP. Z O.O. („LEASING”).
3) BNP PARIBAS GROUP SERVICE CENTER S.A. („GSC”).
All transactions between the Bank and its related parties were entered into as part of daily operations and included mainly loans,
deposits, transactions with reference to derivative instruments as well as income and expenses related to advisory and financial
intermediation services.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
100
Transactions with shareholders of BNP Paribas Bank Polska S.A. and related parties
31.12.2024
BNP
Paribas S.A.
located in
Paris
BNP
Paribas
Fortis S.A.
Other
entities from
the Capital
Group of
BNP Paribas
S.A.
Key
personnel
Subsidiari
es
Total
Assets
9,367,983
1,663
103,956
2,584
2,716,736
12,192,922
Receivables on current accounts, loans
and deposits
7,466,281
1,663
84,274
2,520
2,714,035
10,268,773
Derivative financial instruments
1,670,668
-
8,614
-
-
1,679,282
Derivative hedging instruments
231,025
-
-
-
-
231,025
Other assets
9
-
11,068
64
2,701
13,842
Liabilities
10,032,841
26,789
753,218
1,973
35,259
10,850,080
Current accounts and deposits
5,020,715
26,789
722,019
1,973
34,772
5,806,268
Subordinated liabilities
3,420,128
-
-
-
-
3,420,128
Derivative financial instruments
750,285
-
2,356
-
-
752,641
Derivative hedging instruments
841,713
-
-
-
-
841,713
Other liabilities
-
-
28,843
-
487
29,330
Contingent liabilities
,
Financial commitments granted
-
-
294,101
1,145
-
295,246
Guarantees granted
430,288
86,650
662,905
-
897,330
2,077,173
Commitments received
440,132
121,264
2,270,042
-
857,821
3,689,259
Derivative financial instruments (nominal
value)
75,378,215
-
184,840
-
-
75,563,055
Derivative hedging instruments (nominal
value)
29,817,809
-
-
-
-
29,817,809
Statement of profit or loss
(11,741)
(1,032)
(43,485)
31
238,813
392,952
12 months ended 31.12.2024
Interest income
446,538
228
54,621
159
166,701
668,247
Interest expense
(468,797)
(1,353)
(23,491)
(114)
-
(493,755)
Fee and commission income
-
-
-
-
16,072
16,072
Fee and commission expense
-
-
-
-
(2,078)
(2,078)
Net trading income
252,546
-
14,909
-
-
267,455
Other operating income
-
-
74,175
-
58,464
132,639
Other operating expense
-
-
(41,889)
-
(124)
(42,013)
General administrative costs
(135,666)
-
(17,727)
-
(222)
(153,615)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
101
31.12.2023
BNP
Paribas S.A.
located in
Paris
BNP
Paribas
Fortis S.A.
Other
entities from
the Capital
Group of
BNP Paribas
S.A.
Key
personnel
Subsidiari
es
Total
Assets
15,507,274
46,382
4,386,481
1,746
1,941,446
21,883,329
Receivables on current accounts, loans
and deposits
13,202,692
46,281
4,361,616
1,724
1,939,276
19,551,589
Derivative financial instruments
2,222,035
101
-
-
-
2,222,136
Derivative hedging instruments
82,343
-
-
-
-
82,343
Other assets
204
-
24,865
22
2,170
27,261
Liabilities
9,860,523
7,595
974,917
3,369
73,344
10,919,748
Current accounts and deposits
4,001,897
7,595
679,851
3,369
72,813
4,765,525
Subordinated liabilities
4,075,428
-
260,644
-
-
4,336,072
Derivative financial instruments
903,960
-
10,109
-
-
914,069
Derivative hedging instruments
878,532
-
-
-
-
878,532
Lease liabilities
-
-
-
-
160
160
Other liabilities
706
-
24,313
-
371
25,390
Contingent liabilities
Financial commitments granted
-
-
265,487
1,262
-
266,749
Guarantees granted
322,568
120,284
1,265,596
-
913,080
2,621,528
Commitments received
8,312,740
155,406
1,625,763
-
617,783
10,711,692
Derivative financial instruments (nominal
value)
81,242,618
51,095
239,256
-
-
81,532,969
Derivative hedging instruments (nominal
value)
9,067,254
-
-
-
-
9,067,254
Statement of profit or loss
452,154
(1,903)
(65,941)
(155)
140,821
524,976
12 months ended 31.12.2023
Interest income
403,222
737
24,943
37
85,375
514,314
Interest expense
(338,681)
(2,640)
(32,935)
(192)
-
(374,448)
Fee and commission income
-
-
-
-
8,667
8,667
Fee and commission expense
-
-
-
-
(5,774)
(5,774)
Net trading income
494,336
-
-
-
-
494,336
Other operating income
-
-
-
-
52,900
52,900
Other operating expense
-
-
(41,136)
-
-
(41,136)
General administrative costs
(106,723)
-
(16,813)
-
(347)
(123,883)
Remuneration of the Management Board and Supervisory Board
Remuneration of the Management Board
12 months ended
31.12.2024
12 months ended
31.12.2023
Short-term employee benefits
15,523
18,398
Long-term benefits
4,434
4,587
Benefits due to termination of employment
-
1,801
Post-employment benefits
-
519
Share-based payments*
5,744
4,795
Shares issued**
1,855
2,279
Total
27,556
32,379
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
102
* includes a provision for deferred phantom shares and an amount in the Bank's capital linked to the Bank's shares taken up in the future (in
accordance with the variable remuneration policy)
** value of shares issued based on actuarial valuation
Remuneration of the Supervisory Board
12 months ended
31.12.2024
12 months ended
31.12.2023
Short-term employee benefits
1,832
1,627
Total
1,832
1,627
52. OPERATING SEGMENTS
Segment reporting
The Bank has divided its activities and applied the identification of income and expenses and assets and liabilities into the following
reportable operating segments
● Retail and Business Banking,
● Small and Medium-Sized Enterprises (SME),
● Corporate Banking,
● Corporate and Institutional Banking (CIB),
● Other Operations, including ALM Treasury and the Corporate Centre.
In addition, it has been presented performance related to:
● Agro customers, i.e. individual farmers and agro-food sector enterprises,
● the Personal Finance
Although the aforesaid segment performance overlaps with that of the basic operating segments, it is additionally monitored
separately for purposes of the Bank’s management reporting.
The abovementioned segmentation reflects the principles of customer classification to each segment in line with the business
model adopted by the Bank, which are based on entity and financial criterias (in particular the amount of turnover, level of credit
exposure and assets collected) and the type of business. The detailed rules for assigning customers to specific segments are
governed by the Bank’s internal regulations.
The Bank’s management performance is monitored by considering all items of the statement of profit or loss of the particular
segment, to the level of gross profit, i.e. for each segment revenue, expenses and net impairment losses are reported. Management
revenue takes into account cash flows between customer segments and the asset liability management unit, measured by
reference to internal transfer prices of funds based on market prices and liquidity margins for each maturity and currency.
Management expenses of the segments include direct operating expenses and expenses allocated using the allocation model
adopted by the Bank. Additionally, the management performance of the segments take into account amounts due to each business
line for services between such lines.
The Bank’s operations are conducted in Poland only. As no considerable differences in the risks, which might be affected by the
geographical location of the Bank’s branches, can be identified, no geographical disclosures have been presented.
The Bank applies consistent, detailed principles to all identified segments. As regards the revenue, in addition to standard items,
components of the net interest income of the segments have been identified, to include external and internal revenue and
expenses. As regards operating expenses, the Bank’s indirect expenses are allocated to each segment in the Expense allocation
(internal) item. Considering the profile of the Bank’s business, no material seasonal or cyclical phenomena are identified. The Bank
provides financial services, the demand for which is stable, and the effect of seasonality is immaterial.
Characteristics of operating segments
Retail and Business Banking Segment covers comprehensive services to retail customers, including private banking customers,
as well as business clients (microenterprises). The scope of financial services offered by this area includes maintenance of current
and deposit accounts, acceptance of term deposits, granting mortgage loans, cash loans, mortgage advances, overdrafts, loans
to microenterprises, issuing debit and credit cards, cross-border cash transfers, foreign exchange transactions, sale of insurance
products as well as other services of lesser importance to the Bank’s income. Additionally, the performance of the Retail and
Business Banking Segment includes: performance of brokerage services and distribution and storage of investment fund units.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
103
Retail and Business Banking customers are served through the Bank's branches and alternative channels, i.e. online banking,
mobile banking and telephone banking, the Premium Banking channel and Wealth Management. In addition, sales of selected
products is carried out through financial intermediaries both nationwide and locally.
Personal Finance Segment is responsible for development of product offering and management of financial services provided to
consumers, with the following major products: cash loans, car loans, instalment loans and credit cards. The aforesaid products are
distributed through the Retail and Business Banking branch network as well as external distribution channels.
SME Banking Segment and Corporate Banking Segment provide services to business customers and offer a wide range of
services to companies, as well as corporate clients, financial institutions and public sector entities. Distribution network for
Corporate Banking is based on Regional Corporate Banking Centres located in Warsaw, Łódź, Gdańsk, Poznań, Wrocław,
Katowice, Kraków and Lublin. As part of the Regional Corporate Banking Centers, there are Corporate Banking Centers located
in the largest business centres in Poland, ensuring a wide geographical and sector coverage. After-sales service for the clients of
the Corporate Banking segment is also carried out by the Telephone Business Service Center and in the online banking system.
The main products provided to Business Customers include cash management and global trade finance services – comprehensive
services related to import and export LCs, bank guarantees and documentary collection, supply chain and exports financing,
acceptance of deposits (from overnight to term deposits), financing in the form of, inter alia, overdrafts, revolving and investment
loans, loans from the group of agribusiness financing products, financial market products, including the conclusion of customer
foreign exchange and derivative transactions, leasing and factoring products, as well as specialised services such as real estate
financing, structured financing for mid-caps, investment banking and related services for public sector entities: organisation of
municipal bond issues, forfaiting, dedicated cash management solutions.
The Corporate and Institutional Banking (CIB) Segment supports sales of products of the Bank, dedicated to the largest Polish
enterprises including services provided to key clients.
Other Banking Operations are performed mainly through the Asset and Liability Management Division (ALM Treasury). The main
objective of the Division is ensuring an appropriate and stable level of funding to guarantee the security of the Bank’s operations
and compliance with the standards defined in the applicable laws. The ALM Treasury assumes responsibility for liquidity
management at the Bank, setting internal and external reference prices, management of the interest rate risk inherent in the
Banks’s balance sheet as well as the operational and structural currency risk. The ALM Treasury focuses on both prudential
(compliance with external and internal regulations) and optimisation aspects (financing cost management and generating profit on
management of the Bank’s items from the statement of financial position).
The Other Operations segment includes also direct costs of the support functions, which have been allocated to segments in the
Expense allocation (internal) item, as well as results that may not be assigned to any of the aforementioned segments (to include
equity investment, gains/losses on own accounts and customer accounts not allocated to a specific segment).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
104
31.12.2024
Retail and
Business
Banking
SME Banking
Corporate
Banking
CIB
Other
Operations
Total
including
Agro
customers
including
Personal
Finance
Statement of profit or loss for the period of 12 months ended
31.12.2024*
Net interest income
3,111,281
611,303
1,536,621
101,767
270,841
5,631,813
736,545
696,860
external interest income
3,651,222
500,651
1,833,626
391,737
3,528,200
9,905,437
1,178,105
1,264,985
external interest expenses
(1,405,747)
(313,190)
(684,789)
(13,838)
(1,856,061)
(4,273,624)
(137,411)
-
internal interest income
3,386,012
799,427
1,865,683
15,907
(6,067,028)
-
548,400
-
internal interest expenses
(2,520,206)
(375,585)
(1,477,899)
(292,040)
4,665,730
-
(852,549)
(568,125)
Net fee and commission income
618,526
130,111
389,015
72,718
(7,858)
1,202,511
136,065
122,899
Dividend income
-
-
5,042
-
8,105
13,147
1,051
-
Net trading income (including the result from FX position)
115,512
85,354
362,867
232,352
44,951
841,037
71,136
-
Result on investment activities
-
-
-
-
14,374
14,374
-
-
Result on hedge accounting
-
-
-
-
1,946
1,946
-
-
Other operating income and expenses
(96,510)
(13,796)
(13,495)
(13)
(7,764)
(131,576)
(9,629)
(33,817)
Result from derecognition of financial assets measured at
amortized cost due to material modification
(11,569)
-
-
-
-
(11,569)
-
-
Result of allowance for expected credit losses of financial assets
and provisions for contingent liabilities
2,522
11,173
(199,704)
(39,453)
112
(225,350)
30,135
(54,675)
Result from legal risk related to foreign currency loans
(795,728)
-
-
-
-
(795,728)
-
-
General administrative expenses
(1,024,778)
(114,293)
(355,379)
(107,389)
(1,115,298)
(2,717,137)
(18,708)
(266,635)
Depreciation and amortization
(124,809)
(2,255)
(70,948)
(20,454)
(296,392)
(514,858)
(264)
(17,742)
Expense allocation (internal)
(919,912)
(229,059)
(227,015)
(5,366)
1,381,351
-
-
(127,508)
Operating result
874,535
478,538
1,427,004
234,162
294,368
3,308,610
946,331
319,382
Tax on financial institutions
(184,739)
(26,218)
(125,339)
(26,714)
(41,962)
(404,971)
-
(53,498)
Gross profit
689,796
452,320
1,301,665
207,448
252,406
2,903,639
946,331
265,884
Income tax expenses
-
-
-
-
-
(582,841)
-
-
Net profit
-
-
-
-
-
2,320,798
-
-
Statement of financial position as at 31.12.2024*
Segment assets
40,937,665
5,904,277
28,022,504
5,089,125
83,133,929
163,087,501
13,568,651
12,374,444
Segment liabilities
72,916,607
16,841,038
42,045,238
-
15,972,708
147,775,592
11,805,870
-
* As the financial figures have been rounded and presented in PLN ‘000, in some cases the sum of the figures may not correspond exactly to the grand total.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
The bank
for a changing world
105
31.12.2023
Retail and
Business
Banking
SME Banking
Corporate
Banking
CIB
Other
Operations
Total
including
Agro
customers
including
Personal
Finance
Statement of profit or loss for the period of 12 months ended
31.12.2023*
Net interest income
2,905,820
498,890
1,358,514
113,153
249,952
5,126,329
667,664
689,001
external interest income
3,893,830
551,877
1,809,687
490,257
2,695,434
9,441,085
1,198,420
1,183,862
external interest expenses
(1,345,787)
(372,637)
(784,831)
(9,653)
(1,801,848)
(4,314,756)
(505,907)
-
internal interest income
3,136,850
754,913
1,813,787
11,053
(5,716,603)
-
875,032
-
internal interest expenses
(2,779,073)
(435,263)
(1,480,130)
(378,504)
5,072,969
-
(899,882)
(494,861)
Net fee and commission income
568,036
140,218
377,967
79,159
(4,110)
1,161,271
155,151
102,598
Dividend income
-
-
4,419
-
6,462
10,881
425
-
Net trading income (including the result from FX position)
122,298
88,878
381,210
281,862
77,344
951,591
88,269
-
Result on investment activities
-
-
-
-
11,863
11,863
-
-
Result on hedge accounting
-
-
-
-
(30,939)
(30,939)
-
-
Other operating income and expenses
(33,995)
(2,970)
(5,477)
-
(47,625)
(90,069)
(1,394)
(26,002)
Result from derecognition of financial assets measured at
amortized cost due to material modification
4,190
-
-
-
-
4,190
-
-
Result of allowance for expected credit losses of financial assets
and provisions for contingent liabilities
(55,165)
12,048
51,833
(31,156)
(130)
(22,570)
40,457
(553)
Result from legal risk related to foreign currency loans
(1,978,086)
-
-
-
-
(1,978,086)
-
-
General administrative expenses
(998,381)
(110,071)
(296,078)
(103,548)
(1,014,900)
(2,522,978)
(19,711)
(247,876)
Depreciation and amortization
(117,955)
(2,239)
(55,842)
(15,663)
(264,956)
(456,655)
(285)
(16,185)
Expense allocation (internal)
(833,499)
(217,125)
(201,766)
6,890
1,245,500
-
-
(141,502)
Operating result
(416,737)
407,629
1,614,780
330,697
228,461
2,164,828
930,576
359,481
Tax on financial institutions
(171,940)
(25,860)
(113,629)
(16,936)
(83,288)
(411,653)
-
(42,277)
Gross profit
(588,677)
381,769
1,501,151
313,761
145,173
1,753,175
930,576
317,204
Income tax expenses
-
-
-
-
-
(745,347)
-
-
Net profit
-
-
-
-
-
1,007,828
-
-
Statement of financial position as at 31.12.2023 *
Segment assets
42,315,259
6,375,683
25,985,843
4,915,595
76,796,018
156,388,399
14,301,789
12,071,929
Segment liabilities
66,129,425
17,315,233
42,771,705
-
17,359,326
143,575,690
18,483,435
-
* As the financial figures have been rounded and presented in PLN ‘000, in some cases the sum of the figures may not correspond exactly to the grand total.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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53. LITIGATION, CLAIMS AND ADMINISTRATIVE
PROCEEDINGS
Legal risk
As of 31 December 2024, there were no proceedings in the court, arbitration tribunal or state administration authorities regarding
liabilities or receivables of the Bank, the value of which would exceed 10% of the Bank's equity.
Court decision regarding calculation of the interchange fee
On 6 October 2015, the Court of Appeals issued a decision regarding calculation of the interchange fee by banks acting in
agreement. Thus, the decision of the first instance (Regional) Court of 2013 was changed by dismissing the banks’ appeals in
whole, while upholding the appeal brought by the Office of Competition and Consumer Protection (UOKiK), which had questioned
a considerable reduction in the fines by the first instance court. This denotes that the penalty imposed under the first decision of
the President of UOKiK of 29 December 2006 was upheld. It involved a fine levied on 20 banks, including Bank BGŻ S.A. and
Fortis Bank Polska S.A., for practices limiting competition by calculating interchange fees on Visa and MasterCard transactions in
Poland in agreement.
The total fine levied on Bank BGŻ BNP Paribas S.A. (presently BNP Paribas Bank Polska S.A.) amounted to PLN 12,554 thousand
and included:
● a fine for the practice of Bank Gospodarki Żywnościowej in the amount of PLN 9,650 thousand; and
● a fine for the practice of Fortis Bank Polska S.A. (FBP) in the amount of PLN 2,895 thousand.
The penalty was paid by the Bank on 19 October 2015. The Bank prepared a last resort appeal against the aforesaid court decision
and brought it on 25 April 2016. On 25 October 2017, the Supreme Court overruled the judgment of the Court of Appeal and
remitted the case. Acquisition of the core business of RBPL did not change the situation of the Bank as RBPL was not a party to
this claim.
On 23 November 2020, the Court of Appeal quashed the judgment of the first instance court and remitted the case for re-
examination. In November 2022, the first hearing was held. The case is pending.
Corporate claims against the Bank (interchange fee)
As of 31 December 2024 the Bank received:
● 33 requests for settlement from companies (merchants), due to interchange fees paid in relation to the use of payment cards,
(two from companies which submitted their requests twice and, one from the company which submitted its request three times
and one from a company which submitted two requests for different payment methods). The total amount of these claims was
PLN 1,028.02 thousand, including PLN 1,018.05 thousand where the Bank had joint responsibility with other banks.
● 4 requests for mediation before the PFSA. The requests were sent to the Bank by the same entrepreneurs who had previously
submitted requests for a settlement attempt. The total value of claims arising from the above applications amounts to PLN
40,290 thousand, of which PLN 37,790 thousand relates to joint liability with other banks.
● Most of the settlement requests after the Bank's refusal to enter into negotiationas did not end up in court.
Litigation and claims of investment fund participants in connection with the performance of the function of investment
fund depositary
As of 31 December 2024, the Bank had received a total of 164 individual lawsuits and six collective lawsuits by investment fund
participants, related to the performance of the function of investment fund depositary (including the performance of this function
by Raiffeisen Bank Polska S.A.).
The total amount of claims under the above-mentioned lawsuits is PLN 205,165 thousand. The total amount of provision 2,800
thousand.
The first two group lawsuits were filed by participants of the Retail Parks Fund Closed Investment Fund of Non-Public Assets in
Liquidation (hereinafter RPF Fund), respectively: on behalf of 397 participants, value of claims: PLN 96,221 thousand and on
behalf of 181 participants, value of claims: PLN 25,302 thousand.
Other group lawsuits concern the determination of the Bank's liability for the Bank's operations as depositary of the following funds:
3) PSF 2 Closed Investment Fund of Non-Public Assets (on behalf of 17 fund participants; no indication of the amount of claims),
4) PSF Closed Investment Fund of Non-Public Assets (on behalf of 81 fund participants; no indication of the amount of claims), 5)
EPEF Closed Investment Fund of Non-Public Assets (lawsuit filed on behalf of 42 fund participants; the amount of claims – PLN
128 thousand) and 6) PSF Lease Closed Investment Fund of Non-Public Assets (on behalf of 38 fund participants; the amount of
claims: PLN 8,988 thousand).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The allegations raised in the lawsuits focus, in particular, on the improper performance by Raiffeisen Bank Polska S.A., and then
the Bank, of its obligations to ensure that the value of an investment fund's net assets and the value of net assets per investment
certificate are calculated in accordance with the law and the investment fund's statute, and the obligation to verify the compliance
of an investment fund's operations with the law governing investment funds or with the statute. The Bank's position is that the
claims of fund participants against tha Bank are unfounded.
By 31 December 2024, there were a total of 10 non-final judgments of the courts of first instance:
● 1 judgment unfavourable to the Bank (the Court in the case concerning the InMedica fund awarded the amount of: PLN 64
thousand in favour of the plaintiff due to improper diversification of the fund's assets);
● 9 judgments in favour of the Bank (actions of individual fund participants dismissed due to lack of prerequisites for the
Bank's liability for damages, in one case a request for justification of the judgment was filed).
Administrative proceedings of the Polish Financial Supervision Authority for the imposition of a penalty in connection
with the performance of the function of depositary of investment funds
On 28 September 2022 the Polish Financial Supervision Authority initiated administrative proceedings for the imposition of an
administrative penalty against the Bank pursuant to Article 232(1a) of the Act on Investment Funds and Management of Alternative
Investment Funds, in connection with the Bank's suspected breach of the provisions of the aforementioned Act during the period
31 January 2017 to 31 August 2019, by failing to exercise due diligence on the factual and legal acts carried out by investment
funds PSF Closed Investment Fund of Non-Public Assets and PSF 2 Closed Investment Fund of Non-Public Assets to ensure that
the net asset value of these funds and the net asset value per investment certificate were calculated in accordance with the law
and the statutes of these funds.
By decision of 14 June 2024, the Polish Financial Supervision Authority imposed a fine of PLN 1,000 thousand on the Bank for
breach of obligations related to ensuring that the net asset value of the funds and the net asset value per investment certificate
are calculated in accordance with the law, for valuation dates falling between 31 October 2018 and 31 July 2019. In its rationale
for the decision, the PFSA indicated that the breach of the aforementioned depositary duties consisted mainly of: i.) not obtaining
full information on the financial situation of the issuers of the bonds that the funds were purchasing, which resulted in the Depositary
not being able to fully assess the bond issuers' ability to redeem the bonds, ii.) not performing an analysis of the impact of
circumstances regarding the financial situation of bond issuers on the rationale for impairment losses on bonds and the final fair
value measurement of bonds, iii.) fail to investigate the reasons for negative capital on the part of bond issuers and the possible
impact of these circumstances on the bond issuers' ability to repay their bond redemption obligations. The PFSA dismissed the
proceedings in part to ensure that the net asset value of these funds and the net asset value per investment certificate are
calculated in accordance with the statutes of these funds for the asset valuation days falling between 31 October 2018 and 31 July
2019, and in part to ensure that the net asset value of these funds and the net asset value per investment certificate are calculated
in accordance with the law and the statutes of these funds for the asset valuation days falling between 31 January 2017 and 30
October 2018 (acting as depositary by Raiffeisen Bank Polska S.A.) and from 1 August 2019 to 31 August 2019.
On 4 July 2024 the Bank applied for reconsideration of the case by the Polish Financial Supervision Authority.
The bank has created a provision for the imposed penalty.
The Polish Financial Supervision Authority has informed the Bank that the proceedings to determine the aforementioned
application are scheduled to be completed in April 2025.
On 7 December 2022, the Polish Financial Supervision Authority initiated administrative proceedings for the imposition of a penalty
under Article 232(1a) of the Act on Investment Funds and Management of Alternative Investment Funds, in connection with the
Bank's suspected breach of the provisions of the aforementioned Act in the years 2017 - 2019, by failing to exercise continuous
control over the factual and legal actions carried out by the Retail Parks Fund Closed Investment Fund of Non-Public Assets, in
connection with the valuation of the fund's assets, aimed at ensuring that the net asset value of the fund and the net asset value
per investment certificate are calculated in accordance with the law.
By decision of 14 June 2024, the Polish Financial Supervision Authority imposed a fine of PLN 500 thousand on the Bank for
breach of duties related to ensuring that the fund's net asset value and the net asset value per investment certificate were calculated
in accordance with the law, for the valuation days falling on 30 November 2018 and 28 February 2019.
In the justification for the decision, the PFSA indicated that the breach of the above-mentioned duties of the Depositary consisted
primarily in the failure to conduct a thorough analysis of the circumstances affecting the determination of the situation of the issuers
of the bonds purchased by the fund and to obtain sufficient information on the circumstances affecting this situation. As a result
the Depositary did not recognise the legitimacy of making impairment allowances for the bonds in an appropriate amount and the
valuation of the bonds was inadequate to their actual value. The PFSA dismissed the proceedings in the part concerning the
suspected breach in the period from 1 January 2017 to 30 October 2018.
On 4 July 2024 the Bank has applied for reconsideration of the case by the Polish Financial Supervision Authority.
The bank has created a provision for the imposed penalty.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The Polish Financial Supervision Authority informed the Bank that the proceedings for the recognition of the aforementioned
application are scheduled to be completed in March 2025.
Proceedings on practices violating collective consumer interests - unauthorised transactions
On 8 July 2022, the Office of Competition and Consumer Protection (UOKiK) initiated proceedings related to the practices violating
the collective interests of consumers. The UOKiK alleges that the Bank, upon receipt of a consumer complaint regarding an
unauthorised transaction, does not automatically return funds to customers within the D+1 deadline, but instead conducts an initial
clarification procedure to determine whether the transaction in question should be considered as accepted/conducted by the
customer. The second allegation of the UOKiK relates to the Bank providing inappropriate information to customers when rejecting
complaints about the disputed transaction. When rejecting such complaints, the Bank explained that, according to its systems, the
transaction is considered authorised, because it has been confirmed in accordance with the provisions of the contract applicable
to the customer, including through elements that only he/she should be aware of, and thus, if the customer questions this the
situation should be considered as customer negligence.
The UOKiK made similar allegations against more than a dozen other banking sector entities.
In August and December 2024, the UOKiK requested additional information and extended the proceedings until 11 April 2025.
Proceedings for practices violating the collective interests of consumers - credit holidays
On 5 September 2022, the Bank received the UOKiK's decision to initiate proceedings against practices that violate the collective
interests of consumers by limiting the possibility to apply for a mortgage loan withholding by limiting one application to 2 months,
whereas the customer should be able to apply for all periods at the same time (up to 8 months).
The Bank disagreed with the allegations and has sent its reply to UOKiK, in which it pointed that the Bank accepted and processed
all individual applications applied by customers (for any number of months). Thus, there was no violation of the collective interests
of consumers, as the Bank did not deprive customers of their rights, but only failed to fully automate the electronic application as
of the effective date of the law. At the same time, the Bank informed UOKiK that it had changed the questioned practice by
launching a new application form in GOonline e-banking on 8 September 2022, allowing customers to apply for any/all periods
simultaneously (up to 8 months).
On 17 January 2023, the Bank received the Decision of the UOKiK, in which:
● it recognized the questioned practice as violating the collective interests of consumers;
● the practice was found to be abandoned;
● it ordered publication of the decision;
● it imposed a penalty on the Bank in the amount of PLN 2,721 thousand (reduced by 50% (30% - for cessation of the practice,
20% as a result of initiating a meeting and expressing willingness to cooperate).
On 17 February 2023, the Bank has appealed the decision to the Competition and Consumer Protection Court. On 8 December
2023, the court delivered to the Bank the UOKiK's response to the Bank's appeal, filed with the UOKiK on 28 August 2023.
The Bank has created a provision in the amount of the penalty imposed.
The court closed the hearing and set the date for the announcement of the verdict - March 24, 2025.
Court proceedings concerning the institution of free credit sanctions referred to in Article 45 of the Consumer Credit Act
of 12 May 2011 (‘u.k.k.’)
The institution of the sanction of free credit is regulated in Article 45 of the Consumer Credit Act, according to which, in the event
of a breach by the creditor of the provisions of the Act listed therein, the consumer, after submitting a written statement to the
creditor, shall repay the credit without interest and other credit costs due to the creditor within the time limit and in the manner
agreed in the credit agreement, and if no such manner has been agreed, shall repay the credit in equal instalments, payable
monthly, from the date of the conclusion of the credit agreement. Pursuant to Article 45(5) of the Consumer Credit Act., the
entitlement to the sanction of free credit expires one year after the execution of the credit agreement.
The first lawsuits related to customers' use of the free credit sanction institution started to be received by the Bank in 2021. At the
end of 2024, the Bank had received 801 lawsuits with a total litigation value of PLN 16,865.25 thousand.
The Bank disputes the validity of the claims raised in these cases. The jurisprudence to date is overwhelmingly in favour of the
Bank.
The majority of court proceedings are pending before courts of first instance. There were 92% of favourable judgements in finalised
cases as at 31 December 2024.
Out of all the cases pending against the Bank: 595 are at first instance, 73 are at the second instance stage, while 133 have been
finalised.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The use of the sanction of free credit is also alleged in the Bank's debt collection proceedings. As at 31 December 2024, the plea
in question has been raised in 31 such cases.
Legal issues concerning the institution of the sanction of free credit are the subject of numerous preliminary questions addressed
by Polish courts to the Court of Justice of the European Union (CJEU), concerning:
● the admissibility of interest on non-interest credit costs and the information obligations incumbent on financial institutions in
this regard (Cases C-472/23, C-566/24 and C-744/24),
● the interpretation of the one-year time limit for declaring the sanction of free credit (Case C-566/24),
● the scope of the consumer's information on the early repayment procedure (Cases C-566/24, C-831/24) and the consumer's
right of withdrawal (Case C-566/24),
● examination by the court of its own motion of the creditor's infringement of provisions other than those specified in the
declaration of free credit (Case C-831/24),
● the admissibility of the assignment of claims arising from a consumer credit agreement and the obligation of the court to
examine the assignment agreement ex officio from the point of view of the abusive nature of the provisions contained therein
(C-80/24)
● the permissible method of determining the consideration to which a consumer is entitled under an assignment agreement
(Case C-600/24),
● the application of the sanction of free credit in the light of the principle of proportionality (Cases C-472/23, C-566/24, C-831/24).
On 24 October 2024, the Court of Justice (EU) handed down its judgment in Case C-339/23 (Horizon). The CJEU ruled that the
provisions of Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for
consumers and repealing Council Directive 87/102/EEC allow the Member States to introduce various sanctions for failure to carry
out a consumer credit assessment and for breach of the information obligations set out in the Directive. The CJEU did not analyse
the Polish legislation or identify a specific sanction for breaching the obligation to carry out a consumer creditworthiness
assessment, noting that the choice of sanctions is up to the Member State, provided that they are effective, proportionate and
dissuasive. In Article 45 u.k.k., the legislator did not provide for the possibility of applying a free credit sanction for a bank's breach
of its obligation to examine the consumer's creditworthiness.
The interpretation of the provisions on the institution of free credit sanctions is also the subject of legal issues referred for
consideration by the Supreme Court, concerning: the power of the court to examine ex officio other violations than those indicated
in the content of the declaration submitted by the consumer on the use of free credit sanctions, the interpretation of the one-year
time limit for the submission of the declaration on the use of free credit sanctions, the mutual relation of the institution of free credit
sanctions and the provisions on prohibited provisions, as well as the admissibility of interest on non-interest costs and the possibility
of applying free credit sanctions on this account (ref. II Ca 825/24).
Lawsuits concerning mortgage loan agreements with interest rates based on WIBOR
In the first quarter of 2022, the first media reports of lawsuits against banks challenging WIBOR in loan agreements (with allegations
that clauses relating to WIBOR are abusive, or alternatively that the agreement is invalid) appeared in Poland. These lawsuits seek
to challenge WIBOR as the basis for variable interest rates. In addition, the extent to which and the manner in which consumers
are provided with instructions and information about the volatility of the index as well as the methods of calculating the index and
the factors influencing its change are undermined.
In January 2023, the Bank received the first lawsuits challenging the WIBOR and variable interest rate clauses based on the
WIBOR benchmark in the mortgage loan agreements.
By 31 December 2024, the Bank had received a total of 64 lawsuits (one lawsuit was withdrawn). The lawsuits were filed on behalf
of consumers and relate to mortgage loan agreements in PLN, only 1 lawsuit was filed by an entrepreneur and relates to a revolving
credit agreement.
In the case of the Bank's products offered to consumers, only mortgage loans and certain products for Wealth customers are
based on the WIBOR reference index. Mortgage loans represent 68 thousand agreements with a carrying value of PLN 14,840,135
thousand. The total value of the subject of litigation in ongoing court proceedings is PLN 17,312 thousand, of which PLN 3,939
thousand is covered by a demand for payment. Most of the court proceedings are pending before the courts of first instance. In
three cases, judgments of the court of first instance favourable to the bank were issued, one of which is legally binding
In addition, in 24 debt collection cases brought by the Bank, customers have raised arguments challenging WIBOR as a reference
index.
The vast majority of lawsuits are submitted along with applications for injunctive relief by withholding the interest portion of the
instalment based on the WIBOR interest rate for the duration of the lawsuit. The majority of applications are dismissed by the
courts (57 out of 63 applications for security were dismissed). As at 31 December 2024, only two orders granting the request for
security are binding, of which one order is final after the Bank's complaint was dismissed, in the case of the other order, the Bank
has filed a complaint but it has not yet been heard.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The Bank's position is that the clients' claims are unjustified, in particular in view of the fact that WIBOR is an official index whose
administrator has received the relevant approvals required by law, among others from the Polish Financial Supervision Authority,
and the process of its determination, carried out by the administrator (an independent entity not affiliated with the Bank), is in
accordance with the law and is also subject to supervisory assessment by the Polish Financial Supervision Authority. The
Commission confirmed WIBOR's compliance with the requirements of the law. An analogous position was also presented by the
Financial Stability Committee, which comprises representatives of: the National Bank of Poland, the Polish Financial Supervision
Authority, the Ministry of Finance and the Bank Guarantee Fund.
On 29 June 2023, the Polish Financial Supervision Authority published an assessment of WIBOR's ability to measure the market
and economic realities, concluding that WIBOR has the ability to measure the market and economic realities it was designed to
measure and responds appropriately to changing liquidity conditions, changes in central bank rates and economic realities.
On 26 July 2023, the Polish Financial Supervision Authority ("PFSA") published a position paper on legal and economic concerns
relating to mortgage loan agreements in Polish currency in which the WIBOR interest rate benchmark is used. The position paper
contains an explicit statement that WIBOR meets all the requirements prescribed by law and that, in the PFSA's view, there are
no grounds to question the reliability and legality of WIBOR, in particular in the context of the use of this index in Polish currency
mortgage contracts. The PFSA indicated that its position could be used by banks in court proceedings.
According to data from the Polish Bank Association (as at the end of December 2024), there are currently 1,532 court proceedings
underway in which customers are appealing against contractual provisions providing for interest rates based on the WIBOR
reference rate. In 124 judgments out of 130 passed, the courts of first instance have issued rulings in favour of the banks. 64
proceedings have been finally concluded, including one final judgment unfavourable to the bank (however, the invalidity of the
agreement was due to reasons other than the WIBOR index).
In an order of 31 May 2024 in a case brought by borrowers against PKO BP SA, the Regional Court of Częstochowa addressed
legal questions to the CJEU concerning the possibility of examining contractual provisions concerning variable interest rates based
on the WIBOR index, the bank's information obligations regarding variable interest rate risk and the possibility of continuing a loan
agreement based on a fixed margin if contractual provisions concerning variable interest rates based on the WIBOR are considered
unfair. The case registered under case number C-471/24 has not yet been decided.
Administrative proceedings of the Polish Financial Supervision Authority regarding the imposition of a penalty
On 22 November 2023 the Polish Financial Supervision Authority initiated administrative proceeding against BNP Paribas Bank
Polska S.A. in respect of the imposition of a penalty under Article 176i(1)(4) of the Act on Trading in Financial Instruments. At the
current stage of the proceedings, it is not possible to reliably estimate the size of the potential penalty.
Litigation concerning CHF credit agreements in the banking sector
According to data from the Polish Bank Association, the number of pending lawsuits relating to CHF-indexed/denominated loan
agreements at the end of December 2024 was over 169 thousand compared to over 153 thousand at the end of 2023.
This has resulted in an increase in provisions for these proceedings made by banks with CHF mortgage portfolios.
Proceedings instigated by the Bank’s customers being parties to CHF denominated loan agreements
The gross balance sheet value of residential mortgage loans granted to retail customers in CHF as at 31 December 2024 amounted
to PLN 406,207 thousand, compared with PLN 815,687 thousand at the end of 2023.
As at 31 December 2024, the number of active foreign currency and CHF-denominated loans amounted to 8,3 thousand.
As at 31 December 2024, the Bank was a defendant in 6,596 (2,716 new cases in 2024) pending court proceedings (including
legally finalised cases, customers brought a total of 9,591 claims against the Bank), in which they demand either that a foreign
currency or CHF-denominated mortgage loan agreement be declared invalid or that the agreement be declared permanently
ineffective and the amounts paid to date be repaid.
The claims are based on the presence of abusive provisions in the agreement which do not allow the agreement to be sustained
(Article 385
1
of the Civil Code); the Bank is not a party to any collective claim involving such loan agreements. The total value of
the claims asserted in the currently pending cases as at 31 December 2024 amounted to PLN 3,495,835 thousand (PLN 2,835,204
thousand as at 31 December 2023), and in the legally concluded cases to PLN 1,141,019 thousand (PLN 434,544 thousand as at
31 December 2023).
By 31 December 2024, in 2,995 finalised proceedings, there were 806 judgments in favour of the Bank, including 539 in connection
with court settlements, and in 2,189 cases the courts ruled against the Bank, declaring the loan agreement invalid or permanently
ineffective.
The Bank continuously assesses the impact of legal risks related to pending court proceedings involving denominated or foreign
currency loans, taking into account the current status of judgments in cases against the Bank and the line of jurisprudence.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The Polish courts, despite the different indications resulting from the rulings of Court of Justice (EU) (C-19/20 and C-932/19), in
the vast majority rule on the invalidity or ineffectiveness of credit agreements.
The total impact of legal risk related to litigation recognised in the Bank's statements as at 31 December 2024 was PLN 3,238,760
thousand (PLN 3,404,016 thousand as at 31 December 2023), with an impact of PLN 795,728 thousand on the Bank's statement
of profit or loss in 2024 (PLN 1,978,086 thousand in 2023).
Changes in the total impact of legal risks related to litigation in 2024 are presented in the table below (in PLN thousand):
Total impact of legal risks
12 months ended 31.12.2024
12 months ended 31.12.2023
Balance at beginning of period
3,404,016
1,920,564
Increase in the profit and loss account
795,728
1,978,086
Utilisation
(861,738)
(619,450)
Exchange rate differences
(99,246)
(16,947)
Reclassification of expected credit
losses due to change in accounting
policy
-
141,763
Balance at the end of period
3,238,760
3,404,016
In 2024, the Bank used PLN 422,952 thousand from the estimated impact of legal risk of CHF loans in connection with settlements
reached (in 2023, the Bank used PLN 376,100 thousand on this account).
In 2024, the Bank used PLN 438,786 thousand from the estimated impact of legal risk of CHF loans in connection with final
judgments received declaring loan agreements invalid (in 2023, the Bank used PLN 243,350 thousand on this account).
The total impact of legal risk related to litigation is presented in the table below (in PLN thousand):
31.12.2024
Gross carrying
amount (before
adjustment for
legal risk)
Impact of legal
risks
Gross carrying
amount (after
adjustment for
legal risk)
Real estate loans for individuals in CHF currency
2,080,799
1,674,592
406,207
Impact of legal risk recognized as provisions for litigation
-
1,564,168
-
Total impact of legal risk
3,238,760
31.12.2023
Gross carrying
amount (before
adjustment for
legal risk)
Impact of legal
risks
Gross carrying
amount (after
adjustment for
legal risk)
Real estate loans for individuals in CHF currency
3,070,272
2,254,585
815,687
Impact of legal risk recognized as provisions for litigation
-
1,149,431
-
Total impact of legal risk
3,404,016
In estimating the impact of legal risk, the Bank takes into account, among other things, the estimated number of future lawsuits,
the number of lawsuits filed, the probability of losing the case, and the Bank's estimated loss in the event of an unfavorable
judgment. In addition, the Bank included in the model the estimated number of settlements that will be made with customers. The
amount of the estimated impact of the legal risk associated with the settlements was PLN 238,170 thousand from the total impact
estimate.
The Bank estimates the probability of losing a case based on historical judgments, separately for the foreign currency and
denominated loan portfolios. Due to the observed volatility in case law, the Bank, when estimating the probability of an adverse
judgment, takes into account judgments made after 31 December 2020.
In estimating the loss in the event of a judgment declaring the loan invalid, the Bank assumes that the customer is obliged to return
the capital paid out without taking into account other benefits from the consumer (remuneration for the use of the capital or
valorisation), that the Bank is obliged to return the sum of the capital and interest instalments repaid together with the statutory
default interest awarded and that the Bank writes off the credit exposure. The loss estimate takes into account the time value of
money.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The accounting effect of signing a settlement agreement with a customer is the derecognition of a CHF loan, recognition of a new
loan in PLN and the recognition of a result from the derecognition and the recording of settlements with customers.
The accounting effect of the final judgment declaring the loan agreement invalid is the derecognition of CHF loan exposure and
the recording of settlements with customers due to the declaration of invalidity of the agreement.
Should the assumed average loss change by +/- 5%, with all other significant assumptions unchanged, the amount of the estimated
impact would change by +/- PLN 113,754 thousand.
The Bank conducted a sensitivity analysis of the model used to estimate the number of lawsuits lost. A change in this estimate
would have the following impact on the estimated loss due to legal risk related to CHF loans.
Parameter
Scenario
Impact on Bank’s loss
due to legal risk
Percentage of lost cases
+5 p.p.
PLN +80,439 thousand
-5 p.p.
PLN -115,074 thousand
The Bank conducted a sensitivity analysis of the model used to estimate the number of future lawsuits. A change in the number of
future lawsuits would have the following impact on the estimated loss due to legal risk related to CHF loans.
Parameter
Scenario
Impact on Bank’s loss
due to legal risk
Number of future lawsuits
+20%
PLN +68,031 thousand
-20%
PLN -68,031 thousand
Additionally, according to the Bank’s assessment if 1% of customers with CHF loans filed a lawsuit against the Bank, the loss due
to legal risk would increase by approx. PLN 35,379 thousand.
When calculating the expected loss on legal risk related to CHF loans, the Bank takes into account the available historical data,
including the content of judgments in concluded cases. The Bank monitors the number of collected certificates and the changing
number of lawsuits in order to update the estimated impact of legal risk of foreign currency loans accordingly
The current line of jurisprudence in cases involving actions by CHF borrowers is unfavourable to banks, but nevertheless some
legal issues are still not clarified, in particular the qualification of loans as foreign currency loans. The above issues are relevant to
the assessment of the risks associated with proceedings involving part of the Bank's portfolio
The Bank monitors the courts’ rulings on an ongoing basis and will adjust the level of estimated impact of legal risk to the current
case-law. At the same time, the Bank is aware that the assumptions made are subject to a subjective assessment of the current
situation, which may change in the future. In determining the value of the estimated impact of legal risk, the Bank relies on all
information available at the date of signing the financial statements.
At the same time, the Bank has taken into account the right to recognise a deferred tax asset in connection with the entitlement to
apply a tax preference in respect of settlements falling within the scope of the Ordinance of the Minister of Finance of 11 March
2022, as amended by the Ordinance of 20 December 2022, in force until the end of 2024, on the abandonment of the collection of
income tax on certain income (revenue) related to a residential mortgage loan. As at 31 December 2023, the Bank held assets of
PLN 25,422 thousand, of which PLN 25,422 thousand was realised in the first half of 2024 and an additional PLN 24,267 thousand
on the basis of a created reserve. Based on an new estimate of the impact of the legal risk associated with foreign currency loans
at the end of 2024, the Bank leaves PLN 38,165 thousand in assets with an expected realisation by the end of 2025.
In addition, the Bank - based on the ruling of the Supreme Administrative Court on the tax treatment of returned interest related to
cancelled foreign currency loan agreements and the exchange rate differences arising in relation to these loans, recognised in
previous years, as well as the individual interpretation, according to which statutory interest for late payment ordered by the court
consists of a tax-deductible cost for the Bank on the date of payment - analysed their impact on the deferred tax estimate and, as
a result, decided to create, as at 31 December 2024, an additional deferred tax asset of PLN 135,535 thousand in respect of the
percentage of the estimated impact of the legal risk associated with CHF-denominated loan agreements of PLN 713,343 thousand.
Also based on the aforementioned ruling of the Supreme Administrative Court and the interpretation, the Bank adjusted its CIT
return for 2023 in May this year for an amount of PLN 19,023 thousand in connection with the settlement of the cancellation of
CHF loans for that year.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Case law of the Court of Justice (EU)
On 12 January 2024, the CJEU issued its decision in Case C-488/23, concerning the admissibility of the judicial valorisation of a
bank's consideration in the form of the paid-out capital of a loan. Referring to Case C-520/21, the CJEU pointed out that, where a
credit agreement is declared invalid in its entirety as a result of the elimination of abusive clauses from it, the provisions of Directive
93/13 preclude a judicial interpretation of the law of a Member State according to which a credit institution is entitled to demand
from the consumer, in addition to reimbursement of the capital disbursed pursuant to the credit agreement and statutory default
interest from the date of the demand for payment, compensation consisting in a judicial adjustment of the benefit of the capital
disbursed in the event of a material change in the purchasing power of money after that capital has been paid to the consumer.
On 25 April 2024, the CJEU issued its judgments in Cases C-484/21 and C-561/21, concerning the running of limitation periods
for actions raised on the basis of claims of prohibited terms.
In the first judgment, the CJEU stated that the provisions of Directive 93/13 preclude:
● the limitation period for a claim for reimbursement of expenses incurred by the consumer when concluding a contract with the
trader in respect of a term which has been found unfair by a final court ruling subsequent to the payment of those expenses
started to run from the date of that payment, irrespective of whether the consumer was or could have been aware of the unfair
nature of the term at the time of that payment or before that term was declared invalid by the judgment,
● the limitation period for a claim for reimbursement of costs incurred by a consumer on the basis of a term in a contract with a
trader which has been found unfair by a final judgment of a court shall start to run on the day on which the national supreme
court delivered an earlier judgment, in a separate case, declaring a standard term corresponding to that term in that contract
unfair.
In the second judgment, the CJEU ruled that the provisions of Directive 93/13:
● do not preclude the limitation period for a claim for the reimbursement of costs incurred by a consumer in respect of a
contractual term declared unfair by a final judgment of a court following payment of those costs from running from the date on
which the judgment becomes final, subject to the trader being able to prove that the consumer knew or could have known of
the unfair nature of the term in question prior to that judgment,
● preclude the running of the limitation period for a claim for reimbursement of the costs incurred by a consumer in respect of a
term in a contract concluded with a trader, the unfair nature of which has been established by a final court judgment subsequent
to the payment of those costs, from starting on an earlier date on which the national supreme court has, in separate cases,
delivered judgments declaring unfair the terms corresponding to the relevant term of that contract,
● preclude the limitation period for a claim for reimbursement of costs incurred by a consumer on the basis of a term of a contract
concluded with a trader which has been declared unfair by a final court judgment from running from the date of certain
judgments of the CJEU which confirmed in principle the compatibility with European Union law of the limitation periods for
claims for reimbursement.
The CJEU confirmed that a consumer's claim to establish the unfairness of contractual terms is not time-barred, whereas a
consumer's restitutionary claims (for reimbursement of benefits provided on the basis of unfair contractual terms) may be time-
barred, provided that the time limits set in national law do not make it impossible or excessively difficult for the consumer to pursue
claims under Directive 93/13. The CJEU confirmed that the limitation period for a consumer's restitutionary claim cannot start to
run before the consumer has become aware of the unfair nature of the contractual term in question. In particular, the time limit
cannot start to run already on the date of the consumer's undue performance or on the date of a judgment of the CJEU (e.g. in
Case C-260/18) or the Supreme Court in another similar case (without the involvement of that consumer), if at that time the
consumer had no knowledge of the unfair nature of the condition. According to the CJEU, the starting date of the limitation period
of a consumer's claim may be, in particular, the date on which the court issues a final judgment in a case involving the consumer,
if it was only on that date that the consumer became aware of the unfair nature of the term in question. Due to the scope of the
preliminary questions, the CJEU did not rule on the limitation period of the Bank's claims.
On 24 October 2024, it delivered its judgment in Case C-347/23, concerning the concept of consumer. According to the CJEU,
Directive 93/13 must be interpreted as meaning that an individual who concludes a mortgage credit contract to finance the purchase
of a single residential property with a view to renting it out for a consideration falls within the concept of consumer within the
meaning of the Directive if that individual is acting for purposes which are outside his trade, business or profession. The mere fact
that that natural person seeks to derive an income from the management of that property cannot, in itself, lead to the exclusion of
that person from the concept of consumer.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Resolution of the Supreme Court of 25 April 2024
On 25 April 2024, the entire Civil Chamber of the Supreme Court adopted the so-called ‘large resolution on Swiss franc loans
issue’, resolving the key legal issues, file III CZP 25/22 according to which:
1) If a provision of an index-linked or denominated loan agreement relating to the method of determining the foreign currency
exchange rate consists of an unauthorised contractual term and is not binding, that provision cannot, in the current state of the
law, be regarded as being replaced by another method of determining the foreign currency exchange rate which results from
legal or customary provisions.
2) If it is not possible to establish a foreign currency exchange rate that is binding on the parties in an indexed or denominated
loan agreement, the agreement shall also not be otherwise binding.
3) Where, in the execution of a loan agreement which is not binding due to the illegal nature of its terms, the bank has provided
the borrower with all or part of the amount of the loan and the borrower has made repayments of the loan, independent claims
for the repayment of the wrongful performance arise in favour of each party.
4) If a loan agreement is not binding because of the illegal nature of its terms, the limitation period for the bank's claim for
repayment of sums paid out in respect of the loan begins, as a general rule, from the day following the day on which the
borrower questioned the bank about its bindingness to the terms of the agreement.
5) If a loan agreement is not binding because of the illegal nature of its terms, there is no legal basis for either party to claim
interest or other remuneration for the use of its funds during the period between the time when the wrongful service was
provided and the time when repayment of that service is delayed.
The resolution was passed by a majority. There were separate dissenting opinions from 6 of the 17 judges, primarily as to whether
the agreement should be upheld after the elimination of the conversion clauses. In its wording, the resolution refers only to the
effects of declaring conversion clauses in indexed or denominated loan agreements abusive (without prejudging the abusiveness
of such clauses). The resolution does not apply to foreign currency loans, where the conversion clauses are of an optional nature
and as such are not necessary for the execution of the loan agreement.
In the justification for the resolution, published in September 2024, the Supreme Court:
1) distinguished between indexed, denominated and foreign currency loans, indicating that a foreign currency loan should refer
to a loan whose amount is denominated in a foreign currency, with disbursement by the bank and repayment by the borrower
in the same currency. This type of loans is not the subject of the resolution,
2) confirmed that the limitation period of the bank's claims does not start to run on the date of disbursement of the loan, but only
from the date on which the consumer challenged the validity of the agreement with the bank,
3) stated that the consumer's will not to be bound by an illicit provision may be expressed in any way, including by implication,
4) pointed out that exercising the right of set-off makes it possible, partially, to prevent the negative consequences of thelimitation
period for claims, since, according to Article 502 of the Civil Code, the limitation of a claim does not exclude its set-off if, at
the time when the set-off became possible, the limitation period had not yet expired,
5) pointed out that if the defendant has not yet taken action to actualise the claim, raising a plea of set-off may take place not
only in the first phase of the trial: the legislator takes into account the necessity of addressing an appropriate request for
payment, and then only after the expiry of two weeks from the receivable becoming due, the subject loses the right to raise a
plea of set-off. Finally, the defendant may defend himself or herself by filing a counterclaim or by making use of the institution
of an anti-enforcement action.
It should be emphasised that the position of the Supreme Court expressed in the justification does not unequivocally resolve
previous divergences in case law regarding the definition of a foreign currency loan
1
. However, the Supreme Court noted that in
the case of foreign currency loans in which there is no problem of abusiveness in determining the exchange rate at the time of
disbursement of the loan by the bank, or in which, as a result of the removal of this abusiveness, the agreement is still in force in
a form in which, in principle, repayment of the loan in foreign currency is possible, it may be assumed that Article 358 § 2 of the
Civil Code, as the relevant dispositive provision, applies to the conversion of the exchange rate (i.e. the agreement may be
continued using the average exchange rate of the National Bank of Poland).
1
Cf. Supreme Court judgment of 20 May 2022, ref. II CSKP 713/22, Supreme Court order of 24 June 2022, ref. I CSKP 2822/22, Supreme Court judgment of 26
January 2023, ref. II CSKP 408/22, Supreme Court judgment of 31 January 2023, ref. II CSKP 334/22, Supreme Court judgment of 15 September 2023, ref. II
CSKP 1356/22, Supreme Court judgment of 9 May 2024, ref. II CSKP 2416/22 and Supreme Court judgment of 25 July 2024, ref. II CSKP 1424/22.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Supreme Court case law on CHF denominated and foreign currency loans
On 19 June 2024, a seven-member panel of the Civil Chamber of the Supreme Court issued a resolution in Case III CZP 31/23,
in which it indicated that the right of retention (Article 496 of the Civil Code) does not apply to a party that can set off its claim
against the claim of the other party. In the justification, it was stated that, although the possibility of applying the right of retention
does not raise doubts when the parties' performances are not homogeneous, in a situation where both parties are obliged to
mutually perform monetary performances, the Civil Code provides for a more far-reaching institution, namely the set-off of mutual
claims (Article 498 et seq. of the Civil Code), the effect of which is to cancel the claim up to the amount of the lower claim, without
the risk of insolvency of the other party. Since the right of retention - as a subsidiary instrument - gives way before other types of
security, it should give way even more before set-off as an institution aimed at the satisfaction of claims.
On 2 July 2024, a three-judge panel of the Supreme Court in Case III CZP 2/24 resolved that a power of attorney is sufficient for
the effectiveness of raising a charge of set-off under Article 2031 of the Code of Civil Procedure and receiving such a declaration.
The Supreme Court stated that due to the rationality of the legislator and the consistency of the legal system, it should be assumed
that the allegation of deduction was built on the construction of a substantive legal deduction, allowing it to be raised by a legal
representative.
Issues concerning the reciprocity of the credit agreement and the application of the right of retention will also be decided by the
Supreme Court in Case III CZP 37/24 (formerly III CZP 89/22) - the legal issue was submitted to a panel of seven judges of the
Supreme Court for decision. The resolution adopted may be given the force of legal principle.
As of the end of 2024, 239 cassation appeals have been filed with the Supreme Court in cases of CHF loans granted by the Bank,
50 appeals have been accepted by the Supreme Court for examination and are awaiting substantive decision, as to 129 cassation
appeals, the Supreme Court has issued a decision on refusal to accept for examination. Five cases have been sent back for
examination, while in 6 it dismissed the cassation appeal.
In February 2025, a draft of a new Act on special solutions for the recognition of cases concerning loan agreements denominated
or indexed to CHF concluded with consumers was published. The Act concerns claims related to a credit agreement concluded
with a consumer denominated or indexed to CHF (not applicable to foreign currency loans). The key mechanisms provided for in
the Act include:
● the suspension of the consumer's obligations under the loan agreement as soon as the lawsuit is served on the bank,
● making a first-instance judgment awarding a monetary benefit to a consumer enforceable as soon as the judgment rendered
in closed session is announced or served on the defendant bank,
● removing time limits on raising a set-off, removing interpretative doubts as to whether a declaration of set-off can be made
and accepted by a legal representative,
● allowing the Bank's restitution claim to be submitted during proceedings initiated by the consumer,
● granting tax benefits to parties who decide to withdraw appeals addressed to the courts,
● the possibility of hearing the parties in CHF loans-related cases in writing and the exclusion of restrictions on hearing witnesses
outside the courtroom in a remote meeting,
● the introduction of a review (so-called pre-court) of cassation appeals accepted by the Supreme Court for examination in CHF
loans-related cases, prior to the unification of the jurisprudential line in these cases.
Adoption of the Act is tentatively scheduled for the second quarter of 2025.
Individual settlements offered by the Bank
Since December 2021, the Bank is involved in individual negotiation processes with its customers with whom the Bank is in dispute
or about whom there is a reasonable risk of entering into a dispute. The Bank took this parameter into account when updating the
amount of the total impact of legal risk.
As of 31 December 2024, the Bank has made individual settlement proposals to 13,915 customers (12,807 customers as of 31
December 2023) and 6,202 customers accepted the terms of the proposals presented (4,237 in 2023) out of which 5,550
settlements were signed (3,567 in 2023).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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54. FINANCIAL RISK MANAGEMENT
54.1. Financial instrument strategy
The Bank’s core business focuses on financial products offered to customers: retail customers, entrepreneurs and enterprises,
public sector and budget institutions as well as non-banking financial institutions. Short-term fixed rate deposits as well as current
and savings accounts are the key items of the Bank’s liabilities. On the other hand, the Bank’s assets comprise such credit products
as mortgage loans, cash loans, credit cards, overdrafts, investment and revolving loans, subsidized loans, factoring facilities,
leasing, guarantees, international trade finance transactions (e.g. letters of credit), the majority of which are medium- and long-
term instruments bearing interest based on short-term market rates.
The Bank uses financial market instruments in the first place to manage the liquidity, interest rate and currency risk inherent in its
core business, considering the internal risk appetite as well as market trends in the medium and long term.
Additionally, the Bank offers access to financial market instruments to its customers for purposes of hedging market (currency,
interest rate or commodity) risk inherent with their core business.
54.2. Credit risk
Credit risk is inherent in the core financial operations of the Bank, the scope of which includes both lending and providing funding
with the use of capital market products. Consequently, credit risk is identified as the risk with the highest potential to affect the
present and future profits and equity of BNP Paribas. Proof of the key nature of credit risk is its 55.12% share in the total economic
capital estimated by the Bank for purposes of covering major risks involved in the Bank’s operations, in addition to its 86.96%
share in the total value of regulatory capital.
Credit risk management is primarily aimed at implementation of the Bank’s strategy through a harmonious increase in the loan
portfolio, accompanied by maintenance of the credit risk appetite at an acceptable level.
Credit risk management principles adopted by the Bank include:
● each credit transaction requires comprehensive credit risk assessment expressed in internal rating or scoring;
● in-depth and careful financial analysis serves as the basis for regarding the customer’s financial information and collateral-
related data as reliable; prudential analyses performed by the Bank always take into account a safety margin;
● as a rule, financing is provided based on the customer’s ability to generate cash flows that ensure payment of liabilities to the
Bank;
● credit risk assessment is additionally verified by credit risk assessment personnel, independent of the business;
● pricing terms of a credit transaction have to take account of the risk involved in such a transaction;
● credit risk is diversified with regard to geographical regions, industries, products and customers;
● credit decisions may only be taken by competent employees;
● the Bank enters credit transactions only with known customers and long-term relationships are the basis for cooperation with
customers;
● the customer and the transactions made with the customer are monitored transparently from the perspective of the customer,
in a manner strengthening the relationship between the Bank and the customer;
● the Bank enters credit transactions only with known customers and long-term relationships are the basis for cooperation with
customers;
● the customer and the transactions made with the customer are monitored transparently from the perspective of the customer,
in a manner strengthening the relationship between the Bank and the customer.
Concentration risk is the Bank’s risk inherent to its statutory operations, which is appropriately defined and managed.
The Management Board assesses the concentration risk policy in terms of its application. In particular, it analyses the efficiency
and adequacy of the principles applied in the context of the current and planned operations and risk management strategy. The
adequacy of the concentration risk management is reviewed if any material changes are observed in the Bank’s environment or if
the risk management strategy is modified.
The appropriate assessment of the concentration risk of the Bank is highly dependent on correct identification of all key
concentration risks. In justified cases, the Bank identifies concentration risk when planning its new activities involving the
development and launch of new products, services, expansion to new markets, considerable alterations of products and services
or market changes.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Credit portfolio diversification is one of the key credit risk management tools. The Banks avoids excessive credit concentration, as
it increases the risk. Possible losses pose a considerable threat, and therefore the concentration level should be monitored,
controlled and reported to the Bank’s management. Key concentration risk mitigation tools include risk identification and
measurement mechanisms and exposure limits in individual Bank portfolio segments and in subsidiaries. These tools enable
internal differentiation of the loan portfolio and mitigation of negative effects of adverse changes in the economy.
A significant concentration area (aspect) is the one whose share in the Bank’s balance sheet total is equal or higher than 10% or
5% of the net profit planned for a given year. In such cases, a given concentration area (aspect) is subject to analyses, reporting
and management under the concentration risk management process.
An important potential source of credit risk is the high concentration of the Bank's credit exposures in individual entities or groups
of entities with capital and organisational links. In order to mitigate it, EU Regulation No 575/2013 sets a limit on the Bank's
maximum exposure. In accordance with Article 395 of EU Regulation No 575/2013: An institution shall not take on an exposure to
a client or group of connected clients the value of which, after taking into account the effect of the credit risk mitigation in accordance
with Articles 399 to 403, exceeds 25% of its Tier 1 capital. If such a client is a credit institution or if the group of connected clients
includes one or more credit institutions, the value shall not exceed 25% of the credit institution's Tier 1 capital or EUR 150 million,
whichever is higher, provided that the sum of the exposure values to all connected clients that are not credit institutions, after
taking into account the effect of the credit risk mitigation in accordance with Articles 399 to 403, does not exceed 25% of the credit
institution's Tier 1 capital.
As at the end of December 2024: the limits set out in Article 395 of the EU Regulation No. 575/2013 with respect to BNP Paribas
S.A Group entities - were not exceeded, the Bank's exposure represented 10.64% of Tier 1 capital on a separate basis.
With regard to the limit of exposure to entities outside the BNP Paribas S.A. Group, the limits were not exceeded, the largest
exposure represented 11.64% of Tier 1 capital on a separate basis.
Concentration risk tolerance in the Bank is determined by a system of internal limits, including both assumed development
directions and speed of the Bank’s business, an acceptable level of credit risk and liquidity, as well as external conditions,
macroeconomic and sectoral perspective. Among others, internal limits for credit concentration risk are determined for:
● selected sectors / industries;
● exposures denominated in foreign currencies;
● customer segments (intra-bank customer segmentation);
● loans secured with a given type of collateral;
● geographical regions;
● average probability of default;
● exposures with a specified rating (the Bank’s internal rating scale);
● exposures with a specified debt-service-to-income ratio;
● exposures with a specified loan-to-value ratio.
Activities that limit Bank’s exposure to concentration risk may include systemic measures and one-off / specific decision and
transactions. Systemic measures that limit concentration risk include:
● reduction of the scope of crediting of determined customer types through credit policy adjustment;
● reduction of limits charged with concentration risk;
● diversification of asset types on the level of the Bank’s statement of financial position;
● change of business strategy to ensure prevention of excessive concentration;
● diversification of accepted collateral types.
The Bank's concentration risk mitigation activities of a single/specific decision and transaction nature include the following:
● reduction of further transactions with a given customer or a group of related customers;
● sale of selected assets/loan portfolios;
● securitization of assets;
● establishing of new collateral types (e.g. credit derivatives, guarantees, sub-participation, and insurance contracts) for existing
or new credit exposures.
The industry concentration analysis covers all the Bank's credit exposures to institutional customers. The Bank defines industries
based on the Polish Classification of Business Activities. The structure of the Bank's exposure to industries analysed at the end of
December 2024, is characterised by concentration towards the following industries: Agriculture, Forestry, Hunting and Fishing and
Industrial Processing. At the end of December 2024, the share of Industrial Processing remained at the same level as at the end
of 2023, i.e. 20.7%, while the share of the Agriculture, Forestry, Hunting and Fishing industry decreased by 1.4 p.p. compared to
the end of 2023 and amounted to 17.4% of industry exposure.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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A table showing the breakdown of loans measured at amortised cost and those measured at fair value through profit or loss by
industry of activity (gross carrying value at 31 December 2024 and 31 December 2023) is presented below.
Engagement*
Engagement*
Share of
impaired loans
Share of
impaired loans
Industry
31.12.2024
31.12.2023
31.12.2024
31.12.2023
INDIVIDUAL CLIENTS
32,858,354
34,411,210
2.3%
2.3%
CORPORATE CLIENTS:
51,115,701
49,783,935
3.8%
3.5%
AGRICULTURE, FORESTRY AND FISHING
8,895,844
9,364,474
4.8%
5.9%
MINING AND QUARRYING
24,514
28,662
0.0%
0.1%
MANUFACTURING
10,595,802
10,325,780
6.2%
2.9%
ELECTRICITY, GAS, STEAM AND AIR
CONDITIONING SUPPLY
955,262
986,364
0.2%
0.3%
WATER SUPPLY; SEWERAGE, WASTE
MANAGEMENT AND REMEDIATION ACTIVITIES
89,439
94,874
2.6%
2.6%
CONSTRUCTION
1,875,345
2,519,662
7.7%
6.7%
WHOLESALE AND RETAIL TRADE; REPAIR OF
MOTOR VEHICLES AND MOTORCYCLES
6,656,805
6,896,356
4.1%
4.0%
TRANSPORTATION AND STORAGE
2,172,938
2,256,123
2.2%
2.1%
ACCOMMODATION AND FOOD SERVICE
ACTIVITIES
294,010
354,789
15.6%
12.5%
INFORMATION AND COMMUNICATION
ACTIVITIES
2,524,501
2,543,256
0.5%
1.4%
FINANCIAL AND INSURANCE ACTIVITIES
5,734,522
3,926,539
0.2%
0.4%
REAL ESTATE ACTIVITIES
5,712,575
5,305,080
3.7%
2.2%
PROFESSIONAL, SCIENTIFIC AND TECHNICAL
ACTIVITIES
2,978,438
2,835,578
2.4%
2.0%
ADMINISTRATIVE AND SUPPORT SERVICE
ACTIVITIES
1,338,643
1,008,152
1.2%
3.8%
PUBLIC ADMINISTRATION AND DEFENCE,
COMPULSORY SOCIAL SECURITY
57,507
53,162
0.0%
0.0%
EDUCATION
66,233
78,337
4.1%
5.1%
HUMAN HEALTH AND SOCIAL WORK
ACTIVITIES
1,051,135
766,832
1.7%
9.0%
ARTS, ENTERTAINMENT AND RECREATION
ACTIVITIES
8,081
13,369
8.1%
4.7%
OTHER ACTIVITIES
84,107
426,546
5.2%
1.5%
Total
83,974,055
84,195,145
3.2%
3.0%
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total
sum.
The Bank manages the risk of collateral concentration. For this purpose, the Bank introduced limits for the involvement of particular
types of collateral, ensuring their appropriate diversification. As at the end of December 2024 the limits were not exceeded.
Similarly to the loan portfolio, the concentration of deposits from customers is monitored and reported to the Bank's management.
Monitoring and reporting is performed on a daily basis, in addition to critical values for branches, whose consumption is determined
monthly.
The Bank has established three levels of critical values for deposit concentration:
● for depositors: separate for micro and small businesses (customers of the Retail and Business Banking, Small and Medium-
sized Enterprises Segment) at 1.4% of the total deposit balance of non-banking customers, and large businesses (customers
of the CIB, Corporate Banking Segment) at 4% of the total deposit balance of non-banking customers,
● for industries: 25% of the total deposit base regardless of industry,
● share of top 10 depositors: 10% of total deposits excluding deposits collected from banks.
At the end of December 2024, the critical values for deposit concentration were not exceeded.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Maximum exposure on credit risk
The table below presents the Bank's maximum exposure to credit risk for financial instruments recognised in the financial
statements. The maximum exposure is presented gross, before taking into account the impact of collateral and other credit
enhancement instruments.
31.12.2024
Assets
Maximum exposure on
credit risk – no
collaterals included
Maximum exposure on
credit risk – collaterals
included
Cash and balances at Central Bank
11,325,949
11,325,551
Amounts due from other banks
7,789,824
7,789,297
Derivative financial instruments
2,440,116
2,440,116
Fair value adjustment of hedged and hedging items
230,658
230,658
Loans and advances to customers measured at amortised cost
83,521,549
81,189,258
Loans and advances to customers measured at fair value through profit or
loss
452,506
452,506
Securities measured at amortised cost
32,368,884
32,364,550
Securities measured at fair value through profit or loss
320,925
320,925
Securities measured at fair value through other comprehensive income
23,027,454
23,027,454
Deferred tax assets
685,634
685,634
Other financial assets
1,028,703
961,750
Total assets
163,192,202
160,787,699
Total contingent liabilities
34,611,132
34,454,271
Total exposure on credit risk
197,803,334
195,241,970
31.12.2023
Assets
Maximum exposure on
credit risk – no
collaterals included
Maximum exposure on
credit risk – collaterals
included
Cash and balances at Central Bank
6,884,372
6,883,582
Amounts due from other banks
17,891,427
17,890,698
Derivative financial instruments
3,146,745
3,146,745
Fair value adjustment of hedged and hedging items
94,496
94,496
Loans and advances to customers measured at amortised cost
83,541,563
81,137,225
Loans and advances to customers measured at fair value through profit or
loss
653,582
653,582
Securities measured at amortised cost
26,250,646
26,246,278
Securities measured at fair value through profit or loss
290,887
290,887
Securities measured at fair value through other comprehensive income
16,634,303
16,634,303
Deferred tax assets
608,064
608,064
Other financial assets
604,766
530,619
Total assets
156,600,851
154,116,479
Total contingent liabilities
17,095,145
17,095,145
Total exposure on credit risk
173,695,996
171,211,624
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Exposure to credit risk by credit quality ratings
The table below presents significant credit risk exposures to which the expected credit loss model was applied. The breakdown
was based on the rating scale presented below:
31.12.2024
Gross loans and advances measured at amortised cost, for which impairment allowance is estimated as *:
Rating
Stage 1
12-month
expected credit
loss
Stage 2
Expected credit
loss during the
exposure period
Stage 3
Expected credit
loss during the
exposure period
POCI
Expected credit
loss during the
exposure period
Gross portfolio
value for a given
rating category
Net portfolio
value for a given
rating category
1
-
-
-
-
-
-
2
25,880
1,016
-
-
26,896
26,779
3
3,967,698
-
-
-
3,967,698
3,966,881
4
4,036,999
18,753
-
185
4,055,937
4,042,542
5
8,899,459
412,965
-
622
9,313,046
9,270,910
6
16,970,145
845,127
-
3,330
17,818,602
17,716,773
7
8,246,500
1,622,915
-
1,438
9,870,853
9,727,003
8
888,004
1,830,106
-
295
2,718,405
2,581,666
9
7,199
452,071
-
1,132
460,402
415,674
10
-
446,467
-
1,032
447,499
355,314
11 to 12
-
-
1,846,331
72,993
1,919,324
926,423
no rating
64,794
-
-
-
64,794
64,794
Total
43,106,678
5,629,420
1,846,331
81,027
50,663,456
49,094,759
31.12.2023
Gross loans and advances measured at amortised cost, for which impairment allowance is estimated as *:
Rating
Stage 1
12-month
expected credit
loss
Stage 2
Expected credit
loss during the
exposure period
Stage 3
Expected credit
loss during the
exposure period
POCI
Expected credit
loss during the
exposure period
Gross portfolio
value for a given
rating category
Net portfolio
value for a given
rating category
1
32
-
-
-
32
32
2
18
-
-
-
18
18
3
3,527,087
114
-
-
3,527,201
3,526,543
4
2,938,771
136,700
-
-
3,075,471
3,073,663
5
7,051,145
197,307
-
-
7,248,452
7,237,173
6
15,184,080
566,307
-
808
15,751,195
15,680,782
7
12,350,594
1,736,518
-
15,356
14,102,468
13,931,585
8
880,352
1,864,333
-
558
2,745,243
2,612,179
9
42,127
548,490
-
2,451
593,068
531,419
10
251
334,118
-
2,457
336,826
274,008
11 to 12
-
-
1,627,146
88,330
1,715,476
690,261
no rating
35,426
-
-
-
35,426
35,426
Total
42,009,883
5,383,887
1,627,146
109,960
49,130,876
47,593,089
*Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total
sum.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The rating assessment is performed for the Bank's total loan portfolio excluding individual customers. The Bank determines internal
rating classes in accordance with the adopted credit policy. The rating classes are based on the risk model dedicated to this part
of the loan portfolio and are the basis for estimating the amount of the provision in accordance with IFRS 9. The Bank's customers
are assigned ratings from 1 (clients for whom the Bank identifies the lowest credit risk) to 12 (clients for whom the Bank identifies
the highest credit risk). In order to assign ratings, the annual financial data provided by the client and the general quality
assessment of its market situation are used.
The structure of overdue receivables
The structure of the loan portfolio (measured at amortised cost and measured at fair value through profit or loss) divided into
impaired exposures and not impaired exposures along with the level of arrears in repayment are presented in the tables below.
31.12.2024
Structure of overdue loan
portfolio (net balance sheet
value)*
not impaired
impaired
Total
0 days
1-30 days
31-60 days
61-90 days
Current loans
31,294,073
2,191,968
28,600
10,298
571,444
34,096,383
Investment loans
17,639,868
345,646
3,738
2,034
380,194
18,371,480
Mortgage loans for retail customers
19,730,330
85,924
6,570
3,061
109,206
19,935,091
Other loans
8,919,593
45,316
3,140
961
144,911
9,113,921
Lease receivables
117,509
-
-
-
7,380
124,889
Total
77,701,373
2,668,854
42,048
16,354
1,213,135
81,641,764
31.12.2023
Structure of overdue loan
portfolio (net balance sheet
value)*
not impaired
impaired
Total
0 days
1-30 days
31-60 days
61-90 days
Current loans
30,941,070
1,271,021
43,617
13,407
616,800
32,885,915
Investment loans
17,451,776
383,008
5,153
234
197,192
18,037,363
Mortgage loans for retail customers
21,477,358
48,114
9,907
3,159
130,375
21,668,913
Other loans
8,811,691
112,972
3,305
2,002
77,227
9,007,197
Lease receivables
158,846
12,146
-
-
20,427
191,419
Total
78,840,741
1,827,261
61,982
18,802
1,042,021
81,790,807
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total
sum.
With regard to the mortgage loan portfolio, the Bank defines the DSTI (debt service to income) ratio as the ratio of the total annual
cost of servicing credit and non-credit financial commitments (from which the retail customer cannot withdraw, i.e. arising, inter
alia, from legislation or having a permanent and irrevocable nature) to the total annual income of the retail customer. In accordance
with its mortgage lending policy, the Bank sets maximum levels for the DSTI ratio by following the requirements of
Recommendation S. The Bank monitors the level of the DSTI ratio during annual credit policy reviews, as well as in dedicated ad
hoc analyses.
At the end of December 2024, the Bank does not observe increased credit risk for new loan production as well as the existing
mortgage loan portfolio. Both Vintage ratios and NPL (non performing loan) levels in the mortgage segment are stable at levels no
higher than those observed in the Polish banking market.
Due to the ongoing war in Ukraine and the economic sanctions issued against Russia and Belarus, the Bank analysed credit
exposures directly related to these countries and, on this basis, did not identify significant exposures in both the corporate and
retail portfolios.
At the same time, the Bank monitors the situation of customers on an ongoing basis with a view to securing the loan portfolio and
maintaining its high quality. Preventive actions taken in Q1 2022 are continued. As part of these activities, institutional customers
whose business activity is:
1) linked to the economies of the above countries and thus may be vulnerable to war and imposed sanctions,
2) particularly vulnerable to inflation,
3) vulnerable to the Russian gas embargo.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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For the selection of the war-exposed loan portfolio, the Bank takes into account, inter alia, the following factors:
1) export/import to/from countries at risk,
2) capital or organisational links with Russian or Belarusian citizens,
3) transport services provided in countries at risk or logistic channels passing through countries at risk,
4) production carried out in countries at risk,
5) investments in fixed assets and capital investments in countries at risk,
6) existence of commercial contracts in countries at risk (especially construction contracts),
7) employment of workers from Russia, Ukraine or Belarus,
8) distribution of Russian and Belarusian goods or services (risk of boycott of goods).
In the case of inflation, on the basis of information provided by the Economic and Sectoral Analysis Department, the Bank selected
industries that were particularly sensitive. The share of wages and salaries and third-party service costs in operating costs (as the
main drivers of inflation) and the gross margin were taken into account. An increased risk threshold was defined for each of these
factors. Information on the possibility of passing on price increases to customers was also included in the sensitivity assessment.
The group of customers selected on this basis was subject to further detailed analysis in order to identify activities with a higher
level of risk. The risk assessment is updated on a semi-annual basis.
Impairment allowances
Impairment allowances reflect the expected credit loss calculated using the three-step approach required by IFRS 9, as described
in Note 3.
Collaterals
Description of collateral held or other mechanisms that improve the credit quality
The Bank assesses the creditworthiness of each client on an individual basis. The value of collateral obtained, if it is deemed
necessary by the Bank due to the granting of a loan, is subject to valuation by the Bank.
The Bank accepts various forms of collateral for loans, while the main categories include:
- real estate mortgage;
- insurance of real estate being the subject of a mortgage;
- life insurance of the borrower;
- registered pledge.
Impact of collaterals on the valuation of exposure with impairment identified (loans measured at amortised cost and at fair value
through profit or loss) *
31.12.2024
Gross value with
impairment
Collateral value
Net value with
impairment
Loans and advances to:
Other financial institutions
9,279
4,182
2,020
Retail customers
739,323
337,749
260,182
Corporates:
1,911,785
1,450,456
943,553
including retail farmers
422,509
368,496
183,525
Lease receivables
24,894
-
7,380
Total gross loans and advances
2,685,281
1,792,387
1,213,135
Allowances (negative value)
(1,472,146)
Total net loans and advances
1,213,135
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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31.12.2023
Gross value with
impairment
Collateral value
Net value with
impairment
Loans and advances to:
Other financial institutions
13,600
7,030
4,934
Retail customers
806,815
371,415
302,419
Corporates:
1,699,526
1,299,145
714,234
including retail farmers
503,046
447,001
215,556
Public sector entities
31
-
7
Lease receivables
51,931
-
20,427
Total gross loans and advances
2,571,903
1,677,590
1,042,021
Allowances (negative value)
(1,529,882)
Total net loans and advances
1,042,021
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total
sum
In the period covered by the present financial statements, there were no significant changes in the quality of collateral as a result
of deterioration or changes in the Bank's collateral policy.
Mortgage loans in foreign currencies and denominated in foreign currencies
The total gross balance sheet value of mortgage loans in foreign currencies and denominated in foreign currencies is PLN 427,354
thousand, which accounts for ca. 1% of the loan portfolio of non-financial sector of the Bank (gross carrying amount), a major part
of which (99%) are foreign currency loans and loans denominated in CHF (the Swiss franc).
The Group performs revaluation of the residential property pledged as collateral for loans on an annual basis, on the following
assumptions:
● where the debt is below PLN 12 million at the revaluation date – the property is revalued using a statistical method;
● where the debt is more than PLN 12 million at the revaluation date – the property is revalued on a case-by-case basis.
The revalued amount is the basis for calculation of the current LTV for a single exposure and the average LTV for the entire
portfolio as the average weighted by the gross carrying amount of individual LTVs.
The total on-balance sheet exposure and the average LTVs for mortgage loans in foreign currencies considering impairment and
delinquency in days is presented below:
days past due
gross balance sheet value
average LTV weighted with
gross balance sheet value
0-30 days
315,044
62.43%
31-60 days
1,441
98.04%
61-90 days
1,353
41.99%
over 90 days
109,516
94.54%
Total
427,354
69.84%
impairment identified
gross balance sheet value
average LTV weighted with
gross balance sheet value
NO
311,751
62.09%
YES
115,603
94.00%
Total
427,354
69.84%
The average current LTV for the entire foreign currency mortgage loan portfolio was at the level 69.84%, while the average current
LTV for mortgage loans in the Polish currency was 49.94%.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Exposure structure and average current LTV by loan granting year (mortgage loans in foreign currencies) are presented in the
table below:
date of agreement
number of loans
granted
gross balance sheet
value
average LTV weighted
with gross book value
gross balance sheet
value *
2005 and before
1,117
23,592
43.89%
3,991
2006
2,284
79,908
53.54%
18,610
2007
2,067
108,112
73.27%
25,143
2008
2,444
168,574
82.92%
51,670
2009
255
18,044
52.22%
4,045
2010 and beyond
135
29,124
51.64%
12,144
Total
8,302
427,354
69.84%
115,603
* non-impaired loans
„Forbearance” practices
The Bank treats its exposures as forborne if the obligor is provided with a forbearance due to economic reasons (financial
difficulties), including any forbearance granted for exposures with identified impairment triggers. In case the forbearance is granted
for a customer with a material economic loss, the Bank classifies such a customer as default.
A facility is understood as the occurrence of at least one of the following events:
● a change to the repayment schedule, especially extending the loan maturity date;
● cancellation of overdue amounts (e.g. capitalization of an overdue amount, which can be repaid at a later date);
● redemption of principal, interest or fees;
● consolidation of loans into one new product, if the amounts of payments of the consolidated loan are lower than the sum of
payments of these loans separately before the consolidation occurred;
● decrease of the base interest rate or margin;
● originating a new loan to repay the existing debt;
● conversion of an existing credit;
● amendment or waiver of significant provisions of the agreement (e.g. a condition of the agreement that was breached as a
result of financial difficulties);
● additional collateral presented by the Borrower (if present together with another event meeting the definition of a facility) or
sale of the collateral agreed with the Bank, with the proceeds from the repayment of the collateral being used to repay the
Bank's loan obligation.
The above events are treated as facilities granted for economic reasons only in the situation of customer’s current financial
difficulties or, in the event of changes on the market environment, or such difficulties may occur in the future.
For retail customers, non-reporting individual farmers and companies with simplified accounting, the event of financial difficulties
is identified in a situation when:
● the exposure is subject to debt collection; or
● the exposure is not subject to debt collection but there is evidence (provided by the customer or obtained in the decision-
making process) that the customer is facing financial difficulties or may be facing them in the near future.
For other customers:
● the client with the default status, or
● the client with the indicated rating meeting the defined financial criteria.
The Bank also has dedicated criteria regarding financial difficulty for clients from the Real Estate segment.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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A material economic loss is defined by the Bank as the drop of present value of expected cash flows, resulting from forbearance
granted, equal or higher than 1%. The drop of the present value is calculated in accordance with the below formula:
𝑁𝑃𝑉
0
− 𝑁𝑃𝑉
1
𝑁𝑃𝑉
0
where:
NPV0 – the present value of expected cash flows (including interest and fees / commissions) prior to the introduction of changes
in loan terms, discounted with the original effective interest rate,
NPV1 – the present value of expected cash flows (including interest and fees / commissions), after the introduction of changes in
the loan terms, discounted using the original effective interest rate. In the case of consolidation of many loans for the original
interest rate for the purpose of assessing the significance of economic loss, the average EIR weighted with the gross balance
sheet exposure at the moment of granting the facility is assumed.
The change in the present value of expected cash flows shall be calculated at the level of single exposure.
In justified cases resulting from complex restructuring measures for a given client (e.g. priority repayment of loans with a collateral
of a low value), it is permissible to calculate NPV at the level of a client.
The “forborne” status is no longer assigned if the following conditions have been satisfied:
● exposure reclassified to performing portfolio as a result of the analysis of financial situation (in case of corporate portfolio),
which proved that the customer does not meet the criteria for being classified to the impaired portfolio;
● the exposure has not been considered impaired for 24 months in a row;
● none of the exposures to the customer are past due by more than 30 days;
● the obligor has been making regular and considerable payments for at least a half of the trial period.
The revocation of forborne status shall take place in accordance with the aforementioned conditions, while the extension of the
period of exit from forborne status shall require a credit decision by the competent credit decision-makers, in other cases the status
shall be revoked automatically.
31.12.2024
Forborne exposures
Total portfolio
including
forbearance
exposures
including change
of terms
including
refinancing
Loans and advances for:
83,974,055
1,628,369
1,577,130
51,239
Non-banking financial institutions
6,484,263
406
246
160
Retail customers
32,858,353
289,466
282,886
6,580
Corporate customers
44,411,619
1,338,497
1,293,998
44,499
including retail farmers
8,174,363
242,870
241,424
1,446
Public sector institutions
67,960
-
-
-
Lease receivables
151,860
-
-
-
Impairment losses on loans and advances:
(2,332,291)
(537,219)
(523,464)
(13,755)
Non-banking financial institutions
(28,960)
(184)
(158)
(26)
Retail customers
(763,594)
(113,192)
(110,460)
(2,732)
Corporate customers
(1,512,250)
(423,843)
(412,846)
(10,997)
including retail farmers
(361,727)
(86,081)
(86,041)
(40)
Public sector institutions
(516)
-
-
-
Lease receivables
(26,971)
-
-
-
Total loans and advances (net)
81,641,764
1,091,150
1,053,666
37,484
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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31.12.2023
Forborne exposures
Total portfolio
including
forbearance
exposures
including change
of terms
including
refinancing
Loans and advances for:
84,195,145
1,318,483
1,263,535
54,948
Non-banking financial institutions
3,858,748
876
713
163
Retail customers
34,411,211
389,952
381,471
8,481
Corporate customers
45,640,479
904,329
858,025
46,304
including retail farmers
8,347,615
277,106
275,473
1,633
Public sector institutions
58,375
-
-
-
Lease receivables
226,332
23,326
23,326
-
Impairment losses on loans and advances:
(2,404,338)
(446,132)
(427,332)
(18,800)
Non-banking financial institutions
(13,610)
(488)
(479)
(9)
Retail customers
(866,551)
(135,480)
(132,227)
(3,253)
Corporate customers
(1,488,530)
(304,121)
(288,583)
(15,538)
including retail farmers
(396,126)
(100,472)
(100,366)
(106)
Public sector institutions
(734)
-
-
-
Lease receivables
(34,913)
(6,043)
(6,043)
-
Total loans and advances (net)
81,790,807
872,351
836,203
36,148
Country risk
Within credit risk, the Bank additionally distinguishes country risk, which covers all risks related to conclusion of financial
agreements with foreign parties, assuming that it is possible that economic, social or political events will have an adverse effect
on creditworthiness of the Bank’s obligors in that country or where intervention of a foreign government could prevent the obligor
(which could also be the government itself) from discharging his liabilities.
The Bank’s policy concerning country risk has been conservative. Country limits have been reviewed periodically and the limit level
modified to precisely match the anticipated business needs and risk appetite of the Bank.
As at the end of 2024, 77% of the Bank's exposures to countries other than Poland were transactions related to the Bank's foreign
lending activities, treasury transactions (including placement and derivative transactions) amounted to 15% and the remainder
(8%) was foreign trade transactions (letters of credit and guarantees). France concentrated 44% of exposures, Italy 18%,
Luxembourg 12%, the Netherlands and Germany 6% each, Spain and Austria 5% each. The remaining exposures were
concentrated around Belgium, Mexico and the Czech Republic.
The Bank had no material credit exposures in Russia, Ukraine and Belarus.
54.3. Counterparty risk
Counterparty risk is the credit risk concerning the counterparty transactions in case of which the amount of liability may change in
time depending on market parameters. Therefore, the counterparty risk is related to transactions on instruments whose value may
change over time depending on such factors as interest rates or foreign exchange rates. The varying exposure may affect the
customer’s solvency and is of crucial importance to the customer’s ability to discharge its liabilities when the transaction is settled.
The Bank’s customers may enter into financial market transactions. The exposure is determined by the Bank on the basis of the
current measurement of contracts as well as the potential future changes in the exposure, depending on the transaction type,
customer type and the settlement dates.
At the end of December 2024, the counterparty risk was calculated for the following types of transactions: foreign exchange
transactions, interest rate swap transactions, FX options, interest rate options and commodity derivatives.
Counterparty credit risk, for transactions which generate counterparty risk, is assessed using the same methodology as the one
applied to loans. This denotes that in the credit process, these transactions are subject to limits, the value of which results directly
from assessment of customer creditworthiness. However, the assessment also takes into account the specific nature of
transactions, in particular their changing value in time or direct dependence on market parameters.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The principles applicable to foreign exchange transactions, derivative transactions as well as credit limit granting, use and
monitoring for transactions subject to counterparty risk limits have been laid down in dedicated procedures. According to the policy
in place at the Bank, all transactions are entered into considering individual limits and knowledge of the customer. The Bank
diversifies availability of products, which are offered to customers depending on their knowledge and experience. The Bank has
transparent rules applicable to hedging the counterparty credit risk exposure in place.
At the end of December 2024, the Bank's exposure to the counterparty risk due to concluded derivative transactions was PLN 3.1
billion. Corporate and financial clients constituted 78% of the exposure, while the remaining 22% were banks.
In connection with the ongoing war in Ukraine and the economic sanctions issued against Russia and Belarus, the Bank observes
increased volatility in market risk parameters, which translates into fluctuations in counterparty risk exposure. The Bank assesses
counterparty risk on an ongoing basis by conducting reviews of the portfolio of clients in case of whom this risk exists. The Bank
maintains the application of its basic principle of "Know Your Customer". Due to the non-standard situation, some clients were
asked for additional information related to the change in business. The Bank also takes into account the higher volatility of the
above parameters in risk assessment when entering into new transactions.
The Bank have not observed significant changes in the materialisation of counterparty risk.
54.4. Market risk (interest rate risk in the trading book and currency risk)
Market risk management organization
The operations of BNP Paribas Bank Polska S.A. are recorded in the trading and in the banking book. In relation to market risk,
covering interest risk in the trading book and the currency risk, the Bank is sensitive for changes in market interest rates, foreign
exchange rates, security prices and implied volatility of option instruments leading to changes in the result on measurement of the
financial instruments present value. The risk of adverse changes in the value, driven by the aforesaid factors, is recognised by the
Bank as market risk. The risk is monitored and managed with the use of the defined and specially designed tools and measures.
In order to reflect the characteristics of financial market transactions appropriately, i.e. the intentions of the parties entering into
the transactions, the major risks and the accounting treatment, the Bank allocates all on- and off-balance sheet items to the banking
or trading book. Detailed allocation criteria are established in the documents (“policies” and “methodologies”) adopted by
resolutions of the Management Board of the Bank and defining the purpose of keeping each book, the profile and types of risks
assumed by the Bank, the measurement and mitigation methods as well as the authorizations and place of each organizational
unit of the Bank in the risk generation, measurement, mitigation and reporting process.
The process of concluding transactions and their recording, as well as risk level supervision and adoption of risk limits is performed
by independent units. In line with the long-term strategy adopted by the Bank, as well as with its financial plan, the Supervisory
Board determines the Bank’s risk tolerance, i.e. an acceptable risk level and profile, which is subsequently allocated by the Risk
Management Committee. The Financial Markets Division takes responsibility for daily operational management of the risk inherent
in trading book in line with the defined market risk limits, including limits related to interest rate in the trading book and the currency
risk, which is managed at a centralized level for the entire Bank. The Integrated Risk Management Department are in charge of
measuring and reporting risk and limit overrides. Additionally, the Integrated Risk Management Department ensures that financial
instruments are measured properly. The management result is calculated by the Financial Market Transactions Monitoring Unit,
while transactions are recorded and settled by the Financial Market Transactions Processing Department. The system of limit
override acceptance is hierarchical. It depends on the period of such override and its scale, and is managed by the Division head
or Members of the Bank’s Management Board exercising supervision of the Risk Function and the function responsible for the risk
override. Irrespective of the process, all limit overrides are reported immediately after they occur and discussed at monthly Risk
Management Committee meetings.
Interest rate risk in the trading book
The Bank’s trading activities are supplementary, as they support sales of financial products to corporate customers, non-banking
financial customers (directly) and retail customers (through structured products, which are officially classified into the banking
book). The Bank opens its own positions, thus generating income on short-term changes in price parameters (foreign currency
rates or interest rates), while maintaining the exposure within the adopted risk limits. The Bank offers commodity instruments but
does not maintain open position in commodity market.
As part of the interest rate risk exposure, which is the key exposure in the trading portfolio, the Bank could enter into IRS, OIS,
CIRS, FRA and basis swap transactions and purchase and sale of foreign currency options on interest options. The interest rate
risk was also determined by positions resulting from FX swap and FX Forward transactions.
In 2024, as part of internal risk limits, the Bank maintained an open option position in order to optimize the result, i.e. generate
additional benefits due to the lack of immediate closing of customer positions by reverse transactions on the interbank market. The
priority of the Bank is to hedge the interest rate risk and currency risk.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Sensitivity of items to shifts in the yield curve and the value at risk (VaR – which is a measure that estimates the potential loss
arising from a change in the market value of a portfolio under specified assumptions about market parameters, over a specified
period of time and with specified probability) are the key measures of the interest rate risk in the trading portfolio. Additionally, the
Bank conducts sensitivity analyses, where the changes in interest rates are more considerable than those typically observed
(stress tests).
Interest rate risk for PLN positions measured by the sensitivity to a change in interest rate curves in the trading book was lower in
2024 (average PLN -17 thousand) than in 2023 (PLN -30 thousand).
The following table shows the interest rate risk in the trading book in terms of BPV (Basis Point Value, in PLN’000).
31.12.2024
31.12.2023
BPV*
PLN
EUR
PLN
EUR
31.12.
11
25
(5)
(27)
average
(17)
(14)
(30)
(16)
max
51
28
25
21
min
(69)
(62)
(82)
(95)
* a measure of the sensitivity of instrument measurement to a shift in interest rate curves by 1 basis point
Exposure to interest rate risk in the trading book as measured by the sensitivity to a 1 basis point movement in interest rate curves
and to currency risk in 2024 was maintained at relatively low levels. In contrast, the exposure measured by the use of the internal
VaR limit decreased compared to the previous year and averaged 35% of the allocated limit (compared to 50% a year earlier).
Currency risk
The Bank, while measuring the currency risk, limits the maximum allowable open currency position at the individual currency level
and for all currencies combined, and applies the value at risk method (VaR). For purposes of currency risk monitoring, it is assumed
that VaR is determined with a 99% confidence level and that a position is maintained for one day. The VaR methodology is
validated on an annual basis by means of an analysis which involves a comparison of the forecast figures and those determined
on the basis of actual changes in foreign exchange rates, assuming that the currency position is maintained (back-testing). The
comparative period covers the last 250 business days. The VaR model was back-tested in 2024 and the verification results indicate
that there is no necessity to make any adjustments.
Foreign currency transactions used for management of the Bank’s currency position were characterized by a stable exposure and
a low risk. The risk resulting from foreign currency transactions with customers was offset on the inter-bank market. The level of
risk exposure was maintained at a low level, i.e. around 13% of the utilisation of the available VaR limit and, as in the previous
year, this risk did not make a significant contribution to the overall risk level. The Bank maintained a small open position in foreign
exchange options to ensure the serviceability of customer transactions, for which the exposure was limited through a set of
additional dedicated limits for the Greek gamma and vega ratios.
The following table presents currency risk of the Bank expressed as FX VaR (in PLN ’000):
31.12.2024
31.12.2023
FX VaR*
average
315
289
max
1,600
1,838
min
21
43
* The Bank uses a historical exponential method which assumes the confidence level 99% and that positions are held for 1 day
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The table below presents the currency structure of assets and liabilities in their balance sheet value expressed in PLN ‘000:
31.12.2024
31.12.2023
Currency position items
Assets
Liabilities
Assets
Libilities
USD
7,229,614
6,060,130
7,275,172
6,370,474
GBP
86,456
467,064
532,017
504,233
CHF
350,226
2,521,591
755,200
2,539,229
EUR
29,394,845
24,778,317
31,677,299
24,703,852
Other currencies
84,913
224,739
94,358
207,189
PLN
125,941,447
129,035,660
116,054,353
122,063,422
Total
163,087,501
163,087,501
156,388,399
156,388,399
54.5. Interest rate risk in the banking portfolio (ALM Treasury)
The banking book of BNP Paribas Bank Polska S.A. is composed of two parts: the first one is the ALM portfolio as part of which
structural interest rate, currency and liquidity risks resulting from the structure of the statement of financial position determined by
the core lending, deposit and investing operations of the Bank, are managed. On the other hand, the Treasury portfolio is subject
to daily and short-term liquidity management. It is also used by the Bank for purposes of performing its investing activities as well
as concluding hedging transactions on the financial market.
The ALM portfolio comprises accounts, deposits and loans, strategic items (long-term investments, own debt issues and long-term
loans), financial market transactions hedging the portfolio (derivative instruments) and zero-interest items (to include equity,
tangible assets, intangible assets, taxes and provisions and profit for the period), transferred under management of ALM Treasury
through the Fund Transfer Pricing (FTP) system.
The Treasury portfolio includes liquid securities (liquidity buffer), interbank deposits and placements, nostro and loro accounts as
well as financial market transactions hedging the market risk of the portfolio (derivative instruments).
The Bank’s policy in respect of the banking book – ALM and Treasury portfolios managed collectively – is to earn additional, stable
revenue in excess of the product margin, without any threat to the stability of funds deposited by customers, equity and profit. The
above mentioned objective is accomplished by the Bank by maintaining or matching its natural exposure generated by the core
lending and deposit operations, in line with the adopted risk limits which guarantee limited sensitivity of the Bank’s profit to changes
in market factors, in addition to bringing the exposure into line with financial market trends forecast in the medium and long term.
Competitive conditions of the local financial market and customer expectations are the main factors shaping the Bank's product
policy, in particular the application of variable interest rates for medium- and long-term credit products, and financing of these
assets with short deposits and interest-free accounts.
The real interest rate gap, net interest income sensitivity and economic capital sensitivity are the key measures of the market risk
in the banking book, which comprises the ALM portfolio and the Treasury portfolio.
The major assumptions adopted for measurement of interest rate risk in banking book are as follows:
a) individual assets, liabilities and off-balance sheet transactions are analysed at their nominal value which is used as the basis
for calculation of interest;
b) items and transactions based on floating reference rates, such as WIBOR, NBP rediscount rate etc. are taken into account for
purposes of determining the gap at the nearest repricing date for a given contract;
c) items based on floating reference rates scaled with a multiplier are taken into account for purposes of determining the gap at
the nearest repricing date for a given contract at nominal value scaled with a multiplier and the nominal amount scaled with a value
(1 – multiplier) is considered at the maturity date or proportionally at the principal payment dates;
d) fixed rate items and transactions are taken into account for purposes of determining the gap at the principal payment dates, at
the amounts of the principal paid at a given date or at the full amount at the maturity date for items in case of which the principal
is not repaid (e.g. term deposits). Items and transactions with unspecified maturity, repricing date or non-interest bearing are taken
into account in line with the profile determined as a result of modelling, which is aimed to ensure the best possible reflection of the
changes in interest and principal cash flows resulting from customer behaviours and in response to external factors, in particular
the market interest rates.
e) for the portfolio of impaired loans - for net values (decreased by the created reserves) - the average contractual maturity for
unimpaired exposures (IFRS stage 1 and 2) increased by two years is applied,
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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f) economic capital is calculated based on positions at internal prices.
As part of interest rate risk management in the banking portfolio, the Bank distinguishes structural elements consisting of interest-
free current accounts and the Bank's capital as well as other commercial items. In terms of structural elements, the Bank secures
a significant portion of them by long-term positions (bonds, interest rate exchange transactions). Regarding other commercial
items, the Bank plans to reduce interest rate risk.
For interest rate risk models, the Bank uses the provisions of the 'W' Recommendation regarding verification of the model's
operation, qualitative criteria, minimum model acceptance criteria and ongoing control of the model's accuracy.
Replication portfolio models for accounts with no specific maturity dates are behavioural models built on the basis of the historical
variability of deposit account balances and the analysis of the closing ratios for the modelled position. As part of modelling, the
portfolio is divided into the stable parts and a variable part, which is assigned the symbol ON in interest rate analyses. The stable
part is divided into a part that is insensitive to interest rate changes (the structural part) and a part sensitive to interest rate changes
(the unstructured part). A long-term interest rate repricing profile is determined for the structural part, while for the non-structural
part it depends on the current macroeconomic situation and forecasts of the behaviour of interest rates for individual currencies.
The hedging of these positions is consistent with the designated interest rate risk profile.
As regards loans with a fixed interest rate, prepayment ratios determined in accordance with the applicable models at the Bank
are used. Prepayments are analysed separately for individual types of loans (cash, car, fixed-rate mortgages, variable-rate
mortgages), due to the different characteristics of these products. Factors included in the prepayment analysis: loan age,
seasonality, financial incentive for the customer to prepay the loan.
The impact of the granted and undrawn credit lines on the interest rate risk profile is determined by the estimated profiles of loan
disbursements.
The Bank maintains an interest rate risk management approach for its banking portfolio. Medium and long-term interest rate
positions are hedged by using IRS transactions and fixed rate bonds. Short-term positions are hedged using FRA/IRS
transactions..
Utilisation of the remaining interest rate limits in 2024 was stable.
The following tables present the Bank’s real interest rate gap as at 31 December 2024 and 31 December 2023 (PLN ‘000)* on a
separate basis:
31.12.2024
Interest rate gap
Up to 1 month
1-3 months
3-12 months
1-5 years
Over 5 years
Total
Cash and balances at
Central Bank
11,325,551
-
-
-
-
11,325,551
Amounts due from other
banks
7,789,297
-
-
-
-
7,789,297
Loans and advances to
customers
26,113,246
29,530,857
12,127,734
11,366,965
1,662,566
80,801,368
Investment securities
5,000,500
1,631,966
5,652,493
24,559,201
19,089,847
55,934,007
Other assets
1,109,988
68,224
307,010
1,637,387
818,693
3,941,302
Total assets
51,338,582
31,231,047
18,087,237
37,563,553
21,571,106
159,791,525
Amounts due to banks
(2,559,777)
(6,209,884)
(408,339)
-
-
(9,178,000)
Amounts due to customers
(45,758,869)
(21,167,558)
(26,994,386)
(23,924,339)
(12,875,493)
(130,720,645)
Other amounts due
-
(650,000)
-
-
-
(650,000)
Capital
(1,828,788)
(309,232)
(1,391,543)
(7,421,564)
(3,710,782)
(14,661,909)
Other liabilities
(5,195,698)
-
-
-
-
(5,195,698)
Total liabilities:
(55,343,132)
(28,336,674)
(28,794,268)
(31,345,903)
(16,586,275)
(160,406,252)
Net off-balance sheet
liabilities
(1,868,267)
(5,790,582)
4,815,875
5,824,250
(2,568,754)
412,522
Interest rate gap
(5,872,817)
(2,896,209)
(5,891,156)
12,041,900
2,416,077
(202,205)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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131
31.12.2023
Interest rate gap
Up to 1 month
1-3 months
3-12 months
1-5 years
Over 5 years
Total
Cash and balances at
Central Bank
6,883,582
-
-
-
-
6,883,582
Amounts due from other
banks
17,827,198
20,000
43,500
-
-
17,890,698
Loans and advances to
customers
24,539,808
30,631,923
14,020,343
10,302,641
1,521,903
81,016,619
Investment securities
4,151,690
1,250,205
5,256,706
16,968,907
15,667,451
43,294,960
Other assets
633,179
64,955
292,300
1,558,932
779,466
3,328,832
Total assets
54,035,457
31,967,083
19,612,850
28,830,480
17,968,820
152,414,690
Amounts due to banks
(1,895,336)
(6,575,456)
(436,452)
-
-
(8,907,244)
Amounts due to customers
(44,050,895)
(20,881,213)
(26,159,655)
(22,400,351)
(12,905,000)
(126,397,113)
Capital
(1,033,638)
(283,833)
(1,277,249)
(6,811,993)
(3,405,996)
(12,812,709)
Other liabilities
(4,676,471)
-
-
-
-
(4,676,471)
Total liabilities:
(51,656,340)
(27,740,502)
(27,873,356)
(29,212,343)
(16,310,996)
(152,793,537)
Net off-balance sheet
liabilities
(2,602,125)
(5,014,081)
1,298,372
6,081,210
753,622
516,997
Interest rate gap
(223,008)
(787,499)
(6,962,134)
5,699,346
2,411,445
138,150
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total
sum.
Estimated decreases or increases in the net interest income for the banking portfolio between 1 and 3 years, resulting from changes
in market interest rates, are the measure of its sensitivity. For management and risk control purposes, the Bank calculates
sensitivity to a number of different market parameter change scenarios: immediate shifts and shifts in time, parallel and non-parallel
shifts, in normal and stress conditions, varying depending on the currency, market and instrument.
Annual net interest income sensitivity to an immediate shift of market rates by 100 bps (in PLN ’000) assuming the most probable
change in the product structure, especially in the corporate segment, is presented in the below tables.
Immediate shift in interest rates for all currencies by 100 bps:
31.12.2024
31.12.2023
increase
313,080
254,110
decrease
(316,630)
(229,840)
Sensitivity of interest income by main currencies:
Immediate shift in interest rates by 100 bps:
PLN
EUR
USD
CHF
increase
234,349
66,233
9,384
(1,994)
decrease
(237,900)
(66,233)
(9,384)
1,994
Thanks to the medium- and long-term investments of the structural elements, the Bank's supervisory outlier test of interest income
sensitivity (SOT NII) remains below 5% of Tier1 capital. At the end of December 2024, the SOT NII stood at -4.28%. At the same
time, the supervisory outlier test for the economic value of equity (SOT EVE) remains significantly below the regulatory limit of
15% of Tier1 capital. At the end of December 2024, the maximum SOT EVE was -6.09%.
In terms of base risk, the Bank analyses positions based on different types of rates with the same interest rate repricing date. The
largest potential change in the Bank's net interest income may result from a change in the spread between Wibor 1M rates and
the NBP reference rate. If the market rate changes by 50 bps compared to the reference rate, the change in the result will be PLN
1,657 thousand.
The war in Ukraine did not affect the method of managing the interest rate risk in the banking portfolio
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Impact of the benchmark reform on BNP Paribas Bank Polska S.A.
In 2022, a plan was established to replace the WIBOR interest rate benchmark with a new reference index. In pursuit of this plan,
the Financial Supervision Commission established, at the request of financial market participants, a National Working Group
("NGR") to prepare measures for the smooth and safe implementation of the new reference index. The work of the NGR is
supervised and coordinated by the NGR Steering Committee. In September 2022 the Steering Committee has selected the WIRON
index as the recommended index to replace the existing WIBOR reference index. The administrator of WIRON, within the meaning
of Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016. (BMR Regulation), is a subsidiary
of the Warsaw Stock Exchange S.A. - WSE Benchmark S.A., which is registered with the European Securities and Markets
Authority.
In September 2022, the NGR Steering Committee approved a Roadmap for the process of replacing (converting) the WIBOR and
WIBID benchmarks with so-called Risk Free Rate benchmarks. This document sets out the basic assumptions for the work of the
NGR, including the discontinuation of the calculation and publication of the WIBOR and WIBID benchmarks.
According to the information from the NGR Steering Committee of 25 October 2023, there has been a change in the Roadmap's
original deadline for conversion (1 January 2025) by indicating that conversion will be carried out at the end of 2027.
On 29 March 2024, the NGR Steering Committee decided to initiate a review and analysis of alternative indices to WIBOR, taking
into account both WIRON and other possible Risk Free Rate indices. The aim of the review is to verify the decision of the NGR
Steering Committee, taken in September 2022, based on a wider range of market information in the dynamically changing
macroeconomic environment of the Polish economy. In May 2024, the NGR launched a public consultation on the review and
evaluation of alternative interest rate indices. On 1 July 2024, the collection of views as part of the public consultation process
ended.
On 4 October 2024, the NGR Steering Committee provided a summary of the completed public consultation and announced that
it had launched an additional round of consultation, where it wished to seek views and opinions on a modified list of alternative
interest rate indices, developed taking into account the positions and opinions of market participants provided in the public
consultation completed on 1 July 2024. In the additional round of public consultation, the NGR Steering Committee decided to
include four WIRF index proposals. In contrast, they did not include WIRON, WIRON+ or WRR.
On 18 December 2024, the NGR Steering Committee identified an index with the technical name WIRF- as the target reference
index. Participants in the consultation as justification for the high ratings for the WIRF- index proposal mainly pointed to: the
homogeneity of the trading resource, the relatively low volatility of this index proposal and the highest probability, in their opinion,
of creating a derivatives market for such a target index and plotting a forward curve. In addition, it was noted that the WIRF- index
proposal is characterised by the lowest but sufficient trading resource.
In line with the decision of the NGR Steering Committee on 24 January 2025, the technical name WIRF- has been changed to the
target name POLSTR (Polish Short Term Rate).
The next step for the NGR SC will be to update the Roadmap. The NGR SC also intends to review and update the NGR
recommendations issued so far in the near future.
Ultimately, POLSTR is intended to become a key interest rate benchmark within the meaning of the BMR Regulation that can be
used in financial contracts (e.g. loan agreements), financial instruments (e.g. debt securities or derivatives) and by investment
funds (e.g. in setting management fees).
Structured work is underway at the Bank to adapt its operations to the changes associated with the replacement of the WIBOR
interest rate benchmark. This work is supervised and coordinated by the relevant steering committee. Internal work included
activities related to the planned implementation of the new index in terms of documentation, communication and the Bank's IT
systems. Persons designated by the Bank are also directly involved in the work of the NGR. However, following the decision of
the NGR Steering Committee on Reference Indicator Reform of 29 March 2024 to start the process of reviewing and analysing
alternative indicators to WIBOR, the Bank decided to postpone indefinitely the broad introduction of the WIRON / WIRON
compound rate into the Bank's product offering.
As at 31.12.2024 the Bank has identified:
● WIBOR-based financial assets in PLN million by index tenor:
ON
1W
1M
3M
6M
1Y
Total
36
66
12,380
30,902
8,340
16
51,740
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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● WIBOR-based financial liabilities in PLN million by index tenor:
ON
1W
1M
3M
6M
1Y
Total
5,476
114
4,043
5,271
5
6
14,915
The Bank also had interest rate swaps (CIRS/IRS/FRA) on its banking book based on WIBOR 3M with a total nominal value of
PLN 4.130 million, of which PLN 4.130 million under fair value hedge accounting, and based on WIBOR 6M with a total nominal
value of PLN 6.438 million, of which PLN 5.088 million under hedge accounting.
The Bank also had financial assets based on WIRON of PLN 0.5 million and financial liabilities based on WIRON of PLN 0.16
million.
The Bank assumes that the replacement of the WIBOR interest rate reference index with a new reference index will be carried out
in an orderly manner, in accordance with the formal requirements of the BMR Regulation and the relevant Polish regulations.
In the Bank's view, it is critical to establish an appropriate method for determining the spread adjustment and to apply it to take
into account the effects of a change in the benchmark. It is also important to implement the reform in a way that provides the
transition period necessary for shaping an efficient derivatives market. The Bank also assesses that a key element of the roadmap
is the issuance of Treasury debt based on the new benchmark. The absence of these elements in the transit to the new benchmark
could result in:
• high uncertainty regarding the valuation of on-balance sheet and off-balance sheet items,
• early closure of IRS contracts by central clearing houses in the case of absence of valuation options,
• abrupt and difficult to manage changes in financial institutions' interest rate risk exposures,
• questioning of flows arising from the application of spread adjustments that do not ensure economic equivalence in
settlements between parties.
The Bank assesses that the potential risks that may materialise during the implementation of the reform related to the replacement
of the WIBOR interest rate with the new reference rate may consequently lead to significant systemic disruptions in the functioning
of the entire national economy.
At present, it is not possible to identify any rationale for ending the publication of the EURIBOR index. Thus, the flows resulting
from this index are exchanged between the counterparties under the current rules.
54.6. Liquidity risk
Risk management process organisation
The Bank’s comprehensive liquidity management system covers both immediate (intraday) and future (current, short-term as well
as structural medium- and long-term) liquidity. Risk is managed by the Bank by building the statement of financial position and the
financing structure reflected in the financial statements including both balance and off-balance sheet items to ensure liquidity at
any time, taking into consideration the profile of the Bank’s business, customer characteristics and behaviours as well as needs
that may arise as a result of changes in the financial market. Additionally, the risk identification and measurement methods used
by the Bank enable it to forecast future liquidity levels, also in stress conditions.
The Bank ensures separation and independence of its operations, risk management, control and reporting functions. In particular,
transactions with contracting parties and customers are entered into by the business, confirmed and processed by Operations,
immediate (intraday) and future liquidity is managed by ALM Treasury, daily supervision of the risk level and compliance with risk
limits is the responsibility of the Risk Function, while supervisory liquidity measures are reported independently by the Finance
Division.
The liquidity risk limits adopted by the Bank reduce its exposure to this type of risk. Risk is monitored and controlled based on
documents adopted by resolutions of the Bank’s Management Board (risk measurement and monitoring policy and methodologies),
developed in compliance with the guidelines formulated in Recommendation “P” of the Polish Financial Supervision Authority and
European Commission Delegated Regulation 2018/60 of 13 July 2018 amending Commission Delegated Regulation (EU) 2015/61
of 10 October 2014. The Bank has an internal transfer pricing system in place, which reflects accurately the real financing cost for
each asset and liability type, and the transfer pricing structure stimulates optimization of the statement of financial position,
including diversification of the sources of funding, from the perspective of liquidity risk. LTD limits for each business line are an
important additional component of that system, as they facilitate maintenance of a secure level of assets relative to liabilities, which
is appropriate considering the characteristics of each line.
The level of liquidity risk appetite is determined by the Supervisory Board of the Bank and the risk management policy based on
that appetite, including definition of general liquidity risk measures, is approved by the Management Board, whereas specific risk
limits and their monitoring are the responsibility of ALCO. The Bank’s Management Board and Supervisory Board supervise the
effectiveness of the liquidity risk management process based on periodic information and current reports.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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In compliance with the requirements of the Recommendation “P”, the Bank conducts numerous analyses verifying its ability to
maintain liquidity in crisis situations. Stress tests cover comprehensive scenarios considering internal and system factors and
combining different variants with possible interactions. Stress test results are taken into account in determining liquidity limits. The
Bank has a comprehensive emergency plan in place. It comprises various scenarios along with action plans for liquidity crisis
situations in the Bank and in the banking system as a whole. Stress test results are correlated with the emergency plan and
reaching defined warning levels triggers the emergency plan.
Risk measures
The Bank uses external and internal risk measures. The internal measures include, among others: an analysis of trends and
volatility of each source of funding relative to the loan portfolio (LTD), the contractual liquidity gap and the liquidity gap realigned
based on behavioural factors along with mismatch structure limits defined on its basis, an analysis of surplus liquidity and the
available sources of funding, an analysis of stability and concentration of the deposit base as well as a review of the structure of
funds placed with the Bank by the major depositors by volume and maturity. Additionally, sales plans (covering loans and deposits)
are monitored, by each business line, and simulation analyses are performed. Furthermore, the Bank analyses the costs of the
deposit base with a view to optimizing the liquidity buffer and the use of such tools as the liquidity margin or pricing policy.
The external measures include supervisory long- and short-term liquidity ratios: the liquidity coverage ratio (LCR), as defined in
European Commission Delegated Regulation 2018/60 of 13 July 2018 amending Commission Delegated Regulation (EU) 2015/61
of 10 October 2014, and the net stable funding ratio (NSFR) determined in the Regulation No. 2019/876 of 20 May 2019 amending
the Regulation (EU) No. 575/2013 of the European Parliament and of the Council and developed in line with the Commission
Implementing Regulation (EU) No. 680/2014 and the Basel document on the NSFR.
The on-going supervision includes early warning tools, such as monthly reviews of additional liquidity requirements defined in the
Commission Implementing Regulation (EU) No. 2016/313. In addition, the Bank conducts daily analyses of various liquidity
indicators with warning levels defined in the Emergency Liquidity Plan. Theses allow, when warning levels are reached, to introduce
remedial actions and restore the Bank's safety in terms of liquidity.
Liquidity risk profile
In 2024 the Bank’s financial liquidity was maintained at a safe level. The Bank’s funds were sufficient for payment of all its liabilities
upon maturity. The portfolio of the most liquid securities was maintained at a level, which was sufficient to offset a potential outflow
of funds placed with the Bank by the major depositors in whole.
2024 was a year of the war in Ukraine, but in 2024 the situation required specific activities to be conducted by the Bank. The Bank
maintained on its portfolio the government bond purchased and bonds issued by Bank Gospodarstwa Krajowego to support
pandemic relief efforts. Internal models and internal transfer prices were adjusted on an ongoing basis. The ALMT division
coordinated with the business lines through regularly held meetings and consultations discussing the liquidity situation and the
behaviour of customers
As at the end of 2024 the Bank’s surplus liquidity was at the level of PLN 64 billion:
31.12.2024
31.12.2023
Cash at Central Bank (above the mandatory reserve requirement)
4,464,719
65,758
Cash at other banks uo to 30 days
7,599,214
17,618,841
Highly-liquid securities *
51,786,398
50,227,484
Surplus liquidity up to 30 days
63,850,331
67,912,083
* amount of securities according to valuation
The liquidity surplus decreased compared to the end of 2023, mainly due to a significant reduction in funds in other banks held up
to 30 days, but the highly liquid securities portfolio increased and the Bank had a higher surplus over the required reserve
requirement at the turn of the year.
31.12.2024
31.12.2023
limit
Liquidity Coverage Ratio (LCR)
234%
236%
100%
In 2024, the Bank continued to optimise its funding sources with the aim of reducing unnecessary, yet costly and unstable excess
funding. In 2024, the Bank maintained the level of medium- and long-term borrowings from the BNPP Group and its subsidiaries,
including a subordinated loan from the BNP Group to meet the MREL requirement. The Bank raised new financing of EUR 646
million from the BNPP Group as financing under the MREL requirement. In addition, in 2024 the Bank issued own bonds as an
AT1 instrument.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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135
The stability of the Bank's funding sources remained at a higher level throughout 2024 compared to the previous year.
31.12.2024
31.12.2023
balance
stable (%)
balance
stable (%)
long-term loans from the Group
7,458,669
100%
7,120,828
100%
other long-term loans
450,000
100%
461,336
100%
retail
55,180,605
97%
50,355,270
92%
corporates
75,191,081
92%
71,192,077
78%
banks and other unstable sources
6,944,218
0%
7,530,607
0%
Total
145,224,573
89.9%
136,660,118
80.1%
Inflows and outflows – expected under the agreements concluded by the Bank is presented as contractual liquidity gap *
31.12.2024
Contractual liquidity gap
Up to 1 month
1-3 months
3-12 months
1-5 years
Over 5 years
Total
Assets
Loans and advances to
customers
11,346,802
2,389,737
8,974,042
33,583,343
24,541,710
80,835,634
Debt securities
5,000,500
1,392,185
2,293,483
27,344,992
19,902,847
55,934,007
Interbank deposits
7,599,214
-
-
-
-
7,599,214
Cash and balances at Central
Bank
6,915,875
-
-
-
4,489,469
11,405,344
Fixed assets
-
-
-
-
946,796
946,796
Other assets
1,032,300
-
-
-
1,985,056
3,017,356
Off-balance sheet liabilities,
including: derivatives
13,263,785
4,397,644
12,926,745
24,982,125
31,314
55,601,613
Interest receivable
1,345,076
-
-
-
-
1,345,076
Liabilities
Retail deposits
38,879,831
10,211,315
6,019,166
70,293
-
55,180,605
Corporate deposits
67,930,466
4,498,382
2,613,447
135,742
13,044
75,191,081
Interbank deposits
1,618,290
-
-
-
-
1,618,290
Loans from financial
institutions
-
-
-
3,210,358
1,290,446
4,500,804
Equity and subordinated
liabilities
2,174,307
-
-
1,107,865
17,489,416
20,771,588
Other liabilities
5,818,274
-
-
-
-
5,818,274
Off-balance sheet liabilities,
including: derivatives
13,260,892
4,416,163
12,654,076
25,036,302
31,177
55,398,610
Interest payable
342,545
-
-
-
-
342,545
Total receivables
46,503,552
8,179,566
24,194,270
85,910,460
51,897,192
216,685,040
Total liabilities
130,024,605
19,125,860
21,286,689
29,560,560
18,824,083
218,821,797
Liquidity gap
(83,521,053)
(10,946,294)
2,907,581
56,349,900
33,073,109
(2,136,757)
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total
sum.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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136
31.12.2023
Contractual liquidity gap
Up to 1 month
1-3 months
3-12 months
1-5 years
Over 5 years
Total
Assets
Loans and advances to
customers
12,466,545
2,312,942
8,865,520
32,371,878
25,000,970
81,017,855
Debt securities
3,940,690
1,063,205
1,438,921
20,547,193
16,303,889
43,293,899
Interbank deposits
17,618,841
20,000
43,500
-
-
17,682,341
Cash and balances at Central
Bank
2,492,672
-
-
-
4,374,198
6,866,870
Fixed assets
-
-
-
-
959,737
959,737
Other assets
706,296
-
-
-
1,632,575
2,338,871
Off-balance sheet liabilities,
including: derivatives
8,819,109
3,710,000
11,824,836
23,007,522
1,074,608
48,436,076
Interest receivable
1,230,113
-
-
-
-
1,230,113
Liabilities
Retail deposits
47,196,153
10,893,918
7,608,365
206,523
-
65,904,960
Corporate deposits
55,965,438
2,896,382
1,060,286
219,032
10,293
60,151,431
Interbank deposits
1,610,802
40,000
15,000
450,000
2,808,808
4,924,610
Loans from financial
institutions
3,779
-
7,558
-
-
11,336
Equity and subordinated
liabilities
1,440,681
-
-
1,590,568
13,029,458
16,060,708
Other liabilities
4,238,982
-
-
-
-
4,238,982
Off-balance sheet liabilities,
including: derivatives
8,728,769
3,725,749
11,595,676
23,000,882
1,073,666
48,124,743
Interest payable
435,030
-
-
-
-
435,030
Total receivables
47,274,266
7,106,146
22,172,778
75,926,593
49,345,977
201,825,760
Total liabilities
119,619,634
17,556,049
20,286,884
25,467,006
16,922,226
199,851,800
Liquidity gap
(72,345,368)
(10,449,903)
1,885,893
50,459,587
32,423,752
1,973,960
* Financial data have been rounded and presented in PLN ‘000, and therefore, in some cases, the totals may not correspond exactly to the total
sum.
Compared to 2023, the value of the contractual gap within 1 month has increased, due to changes on off-balance sheet derivative
products. As for customer deposits, the pool of these funds at contractual maturity up to 1 month has increased, but the stability
of the funds studied at the Bank is higher than last year The stability of customer funds is at 92% from corporate and 97% for retail
customers. At the end of 2024, off-balance sheet liabilities outside derivatives amounted to PLN 49 billion.
The Bank's liquidity position continued to improve throughout the year. The ongoing war in Ukraine had no impact on the Bank's
overall liquidity position. There was also no change in interest rates in 2024. However, inflationary concerns, wage pressures as
well as significant increases in energy prices are holding back demand for loans in the retail segment as well as in the corporate
segment.
At all times, the primary source of funding is funds raised from non-bank customers.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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54.7. Operational risk
The Bank’s operational risk is defined in accordance with the requirements of the Polish Financial Supervision Authority included
in Recommendation M as the risk of incurring a loss through the fault of inappropriate or unreliable internal processes, people,
technical systems or as a result of external factors. It comprises legal but not strategic risk. The Bank also recognizes as operational
risk events and losses which may result from the materialization of compliance risk
2
. Operational risk as such is inherent in any
banking operations. The Bank identifies the operational risk as permanently significant.
Operational risk management strategy and policy
Operational risk management consists in employment of measures aimed at operational risk identification, analysis, monitoring,
control, reporting and mitigating. Such measures take into account the structures, processes, resources and scopes of
responsibilities for the said processes at various organizational levels, within the three lines of defence. The operational risk
management strategy has been described in the Operational risk management strategy and internal control at BNP Paribas Bank
Polska S.A., which was approved by the Management Board of the Bank and accepted by the Supervisory Board. The Operational
Risk Policy of BNP Paribas Bank Polska S.A., adopted by the Risk Management Committee of the Bank, constitutes organizational
framework and standards for operational risk management. It addresses all aspects of the Bank’s operations in addition to defining
the Bank’s objectives and the methods of their achievement as regards the quality of operational risk management as well as
compliance with legal requirements set out in the recommendations and resolutions issued by national financial supervision
authorities. The Bank’s operational risk management objectives include, in particular, compliance with high operational risk
management that guarantee security of customer deposits, the Bank’s equity, stability of its financial performance as well as
maintenance of the operational risk level within the range of the operational risk appetite and tolerance defined by the Bank. When
developing the operational risk management system, the Bank complies with the applicable legal requirements, in particular, with
the recommendations and resolutions of the national financial supervision authorities and the standards adopted by the BNP
Paribas Group.
According to the Policy, operational risk management instruments include, among others:
● the identification and assessment of operational risk, including through the collection of information on operational events, the
assessment of risks in processes and products, the self-assessment of operational risk and control, the assessment of
operational risk for contracts with external suppliers (outsourcing) and the determination of key risk indicators;
● setting operational risk appetite and limits on a Bank-wide and individual business area level; operational risk analysis,
including operational risk scenario analysis and its monitoring and ongoing control;
● reporting on operational risk.
The Bank's Management Board periodically assesses the implementation of the operational risk strategy and, if necessary, orders
necessary adjustments to improve the operational risk management processes. To this end, the Bank's Management Board is
regularly informed of the scale and types of operational risk to which the Bank is exposed, its effects and operational risk
management methods. In particular, both the Bank's Management Board and the Supervisory Board are regularly informed of the
development of the operational risk appetite measures set out in the Operational Risk Management Strategy.
As part of the implementation of the operational risk management and internal control Strategy, the Bank took and continued to
take a number of measures to mitigate operational risk in 2024. Actions were taken to streamline and improve the quality of
processes and to optimise and enhance the effectiveness of the internal control environment, including the control mechanisms
and processes assigned to this type of risk. In particular, processes and tools for preventing and combating fraud against the Bank,
including cybercrime, were strengthened. The measures implemented focused, inter alia, on combating credit fraud and reducing
unauthorised transactions, as well as continuing the programme to raise awareness of fraud risks in order to reduce them. The
Bank monitored its exposure to legal risk on an ongoing basis, including the risk arising from pending litigation concerning CHF-
denominated loans, in order to respond adequately to changes in the level of risk.
Following the ongoing armed conflicts, the Bank monitored potential risks to the Bank on an ongoing basis, including those relating
to security and ensuring business continuity.
The Bank's Management Board and the Risk Committee of the Supervisory Board are informed about the effectiveness of the
solutions implemented by the Bank in this respect.
2
Compliance risk means the risk of negative consequences, including legal and regulatory sanctions, financial penalties and loss of reputation,
due to the Bank’s failure to comply with laws, standards and recommendations of regulatory authorities, ethical and market standards and
internal regulations applicable to the Bank.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Internal environment
The Bank precisely defines the division of responsibilities for operational risk management, which is adapted to the organisational
structure. As part of the second line of defence, comprehensive supervision of the organisation of operational risk management
standards and methods is exercised by the Operational Risk, Internal Control and Anti-Fraud Division operating within the Risk
area. The Division's responsibilities include, inter alia, issues relating to operational risk management, combating fraud against the
Bank and the supervision of internal control, including the control of personal data protection processes.
The definition and implementation of the Bank's insurance strategy, as a method of risk mitigation, is the responsibility of the
Property and Administration Department, while business continuity management is the responsibility of the Security and Business
Continuity Management Division.
As part of legal risk management, the Legal Division monitors, identifies and analyses changes in law and their impact on the
Group's operations, and is involved in judicial and administrative proceedings that affect the Group. The ongoing monitoring of
compliance risk and the development and improvement of adequate techniques for its control are handled by the Compliance
Department.
Risk management
The Bank pays particular attention to the processes for identifying and assessing the causes of current operational risk exposure
within banking products. The Bank seeks to reduce the level of operational risk by improving internal processes, as well as to
reduce operational risks accompanying the introduction of new products and services and the outsourcing of activities.
Pursuant to the “Operational Risk Policy of BNP Paribas Bank Polska S.A.”, the operational risk analysis aims to understand the
relationships between the factors generating this risk and the types of operational events, and its most important result is the
determination of the operational risk profile.
The operational risk profile is an assessment of the level of materiality of this risk, understood as the scale and structure of the
exposure to operational risk, determining the degree of exposure to this risk (i.e. to operational losses), expressed in structural
and scale dimensions selected by the Bank. The periodic assessment and review of the Bank's operational risk profile is carried
out based on an analysis of the Bank's current risk parameters, changes and risks in the Bank's environment, the implementation
of the business strategy, as well as an assessment of the adequacy of the organisational structure and the effectiveness of the
Bank's risk management and internal control system. The analysis of the operational risk profile also takes into account the Bank's
subsidiaries.
Internal control system
The purpose of internal control is effective risk control, including risk prevention or early detection. The role of the internal control
system is to achieve general and specific objectives of the internal control system, which should be considered at the design stage
of control mechanisms. The principles of the internal control system are described in the "Policy on internal control at BNP Paribas
Bank Polska S.A." document, approved by the Bank's Management Board. This document describes the main principles,
organizational framework and standards for the functioning of the control environment at the Bank, complying with the PFSA
requirements provided in Recommendation H and the Regulation of the Minister of Finance, Funds and Regional Policy of 8 June
2021 on the risk management system and the internal control system, the remuneration policy in banks. Detailed internal
regulations concerning specific areas of the Bank's activity are adapted to the specifics of the Bank's operations. The appropriate
organizational units of the Bank, in accordance with the scope of the tasks assigned to them, are responsible for developing
detailed regulations relating to the area of internal control.
The internal control system at the Bank is based on the 3 defence lines model, which consists of:
● 1st line of defence, which consists of organizational units from particular areas of banking and support areas,
● 2nd line of defence, which consists of organizational units responsible for risk management, regardless of the risk management
related to the first line defence, and the compliance unit,
● 3rd line of defence, which is independent and objective internal audit unit.
The Bank ensures internal control through independent monitoring of compliance with control mechanisms, including on-going
verification and testing.
Monitoring and reporting
The Bank periodically monitors the efficiency of the operational risk management system and its appropriateness for its current
risk profile. The organization of the operational risk management system is reviewed as part of periodic control exercised by the
Internal Audit Division, which is not directly involved in the operational risk management process but provides professional and
unbiased opinions supporting achievement of the Bank’s objectives. The operational risk management system is overseen, and
its appropriateness and efficiency are assessed by the Supervisory Board.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Capital requirements due to operational risk
The Bank estimates regulatory capital for operational risk in accordance with the applicable regulations. To calculate regulatory
capital on a separate basis, the Bank used the standardised approach (STA).
Risks arising from the ongoing armed conflicts
In terms of operational risk management, the Bank analyses the risks related to the consequences of the war activities in Ukraine
and in the Middle East (including, in particular, cyber or physical attacks targeting the payment or banking infrastructure that may
result in business continuity disruptions) on an ongoing basis, and continues appropriate measures to ensure the security of both
the Bank's employees and customers and to ensure the uninterrupted execution of processes related to its operations, including
by introducing additional security measures and increasing monitoring of the ICT infrastructure.
55. CAPITAL ADEQUACY MANAGEMENT
Capital adequacy management is aimed to ensure the Bank’s compliance with macro-prudential regulations defining capital
requirements related to the risks incurred by the Bank, quantified in the form of the capital ratio.
Since 1 January 2014, banks have been subject to new principles applicable to calculation of capital ratios, following the
implementation of Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on macro-prudential
requirements for credit institutions and investment firms, as amended by Regulation (EU) 2019/876 of the European Parliament
and of the Council of 20 May 2019 (CRR2) in relation to leverage ratio, net stable funding ratio, own funds and eligible liabilities
requirements, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment
undertakings, large exposures, reporting and disclosure requirements.
On 23 December 2020, Commission Delegated Regulation (EU) 2020/2176 of 12 November 2020, amending Delegated
Regulations (EU) No 241/2014 as regards the deduction of software assets from Common Equity Tier 1 items, entered into force.
As at 31 December 2024 the adjustment in common equity Tier 1 capital related to other intangible assets amounted to PLN
484,382 thousand.
The capital ratios, capital requirements and equity have been calculated in accordance with the aforesaid Regulation with the use
of national options.
Pursuant to the Act of 5 August 2015 on macroprudential supervision of the financial system and crisis management in the financial
sector (Journal of Laws 2015, item 1513, as amended), an additional buffer of 2.5% was introduced starting from 1 January 2019.
The Financial Supervision Authority, in a release dated 20 November 2023, announced that, based on the provisions of the Act of
5 August 2015 on macroprudential supervision of the financial system and crisis management in the financial system and after
taking into account the opinion of the Financial Stability Committee, it confirmed the identification of ten banks as other systemically
important institutions (O-SII).
On 16 September 2024, the Bank received for information a request from the Polish Financial Supervision Authority regarding the
expression of an opinion by the Financial Stability Committee regarding the amendment of the Commission's decision of 4 October
2016, as amended by the Commission's decision of 19 December 2017, to impose on the Bank (on a consolidated and individual
basis) a buffer of another systemically important institution equivalent to 0.25% of the total risk exposure amount calculated in
accordance with Article 92(3) of Regulation (EU) No 575/2013. By its decision of 6 December 2024, the Polish Financial
Supervision Authority amended the decision of 4 October 2016 imposing on the Bank a buffer of another systemically important
institution in an amount equivalent to 0.50% of the total risk exposure amount calculated in accordance with Article 92(3) of
Regulation (EU) No 575/2013 of the European Parliament and of the Council.
The Polish Financial Supervision Authority, by letter dated 16 December 2024, informed that in the supervisory assessment
process the Bank's sensitivity to the possible materialisation of stress scenarios affecting the level of own funds and risk exposures
was evaluated as low. On the basis of the 2024 supervisory stress tests conducted by the Polish Financial Supervision Authority
and in accordance with the instruction, the total capital charge recommended under Pillar II offset by the capital buffer requirement
was set at 0.00 p.p. on a separate and on a consolidated basis.
The Bank-specific countercyclical buffer rate, determined in accordance with the provisions of the Act of 5 August 2015 on macro-
prudential supervision of the financial system and crisis management in the financial system, as a weighted average of the
countercyclical buffer rates applicable in the jurisdictions where the Bank's relevant credit exposures are located, was 0 bps at 31
December 2024. The value of the ratio was affected by the application of Article 2.5(b) of Commission Delegated Regulation (EU)
No 1152/2024 according to which foreign exposures, whose aggregate does not exceed 2 % of the aggregate of the general credit,
trading book and securitisation exposures of that institution are allocated to the institution's home Member State. The
countercyclical buffer rate for credit exposures in the territory of the Republic of Poland that applied at the end of 31 December
2024 was 0%.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The level of Tier 1 capital and total capital ratio (TCR) on a separate basis were above the requirements applicable to the Bank as
at 31 December 2024. Pursuant to the Resolution of the Bank's Annual General Meeting of 16 April 2024, the Bank's profit for
2023, amounting to PLN 1,007,828 thousand, was assigned to dividend payment in the amount of PLN 503,998 thousand and
reserve capital in the amount of PLN 503,830 thousand.
On 16 September 2024, the Bank communicated to BNP Paribas S.A (the lender) that it had made use of its right to exercise its
option to make an early repayment of the Tier II loans in the amounts of PLN 440 million and EUR 40 million concluded under
separate agreements on 29 December 2015. On 30 November 2024, the Bank communicated to BNP Paribas Succursale de
Luxembourg (the lender) that it had exercised its right of early repayment of the Tier II loan in the amount of EUR 60 million
concluded under an agreement on 22 November 2016.
By a decision dated 31 December 2024, the Polish Financial Supervision Authority approved the Bank's classification of capital
instruments constituting series A capital bonds with ISIN code PLO164300017, in the number of 1,300 (in words: one thousand
three hundred) units, with a nominal value of PLN 500,000 each, and with a total value of PLN 650,000,000, as Additional Tier 1
(AT1) capital instruments. The Capital Bonds issued by the Bank on 28 November 2024 are instruments with no fixed maturity
date, entitling the Bank to receive interest for an indefinite period, subject to the Bank's ability to redeem them early under the
terms and conditions of issue. The Capital Bonds have been acquired exclusively by BNP Paribas S.A., based in Paris.
At the same time, the Bank complies with the legal requirements under the Act of 5 August 2015 on macroprudential supervision
of the financial system and crisis management in the financial sector.
31.12.2024
The minimum supervisory separate
solvency ratios of the Bank
Separate capital adequacy ratios of the
Bank
CET I
7.50%
13.38%
Tier I
9.00%
14.10%
Total Capital Ratio
11.00%
17.58%
31.12.2023
CET I
7.96%
12.97%
Tier I
9.46%
12.97%
Total Capital Ratio
11.46%
17.28%
Requirement of a minimum level of own funds and eligible liabilities (MREL)
On 20 June 2023, the Bank received a letter from the BGF regarding the joint decision of the resolution authorities, i.e. the Single
Resolution Board (“SRB”) and the BGF on the minimum level of own funds and eligible liabilities ("MREL").
The joint decision indicates that the Group's restructuring plan envisages a Single Point of Entry (SPE) strategy for the mandatory
restructuring. The Group’s preferred tool for mandatory restructuring is the open bank bail-in tool.
On 31 May 2024, the Bank received an updated letter from the BFG regarding the MREL requirement. The MREL requirement for
the Bank has been set at an individual level at 16.02% of the total risk exposure ("TREA") and 5.91% of the total exposure measure
("TEM"). This requirement is binding from 31 May 2024.
MREL requirement applies at individual level.
The entire MREL requirement should be met in the form of own funds and liabilities meeting the criteria set out in Article 98 of the
BGF Act, which transposes Article 45f(2) BRRD. According to the BGF's expectations, the part of MREL corresponding to the
recapitalisation amount ("RCA") will be met in the form of AT1, T2 instruments and other subordinated eligible liabilities acquired
directly or indirectly by the parent company. The Bank meets the mentioned requirement.
At the same time, the BGF indicated that Common Equity Tier 1 ("CET1") instruments held by the Bank for the purposes of the
combined buffer requirement cannot be counted towards the MREL requirement expressed as a percentage of TREA. This rule
does not apply to the MREL requirement expressed as a TEM percentage.
On 12 September 2024, 29 October 2024 and 19 December 2024, the Bank entered into agreements with BNP Paribas S.A. to
raise Senior Non Preferred loans of EUR 142 million, EUR 60 million and EUR 100 million, respectively. The above loans were
recognised for the purposes of meeting the MREL ratios in relation to TREA and TEM.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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141
As of 31 December 2024, the Bank meets the defined requirements of MREL-TREA and MREL-TEM.
31.12.2024
Minimum
separate
supervisory
requirements for
the Bank
Minimum
supervisory
separate MREL
ratios for the
Bank increased
by the combined
buffer
requirement
Bank's separate
requirement
ratios
MREL-TREA
16.02%
19.02%
22.83%
MREL-TEM
5.91%
5.91%
11.61%
31.12.2023
Minimum
separate
supervisory
requirements for
the Bank
Minimum
supervisory
separate MREL
ratios for the
Bank increased
by the combined
buffer
requirement
Bank's separate
requirement
ratios
MREL-TREA
16.11%
18.87%
21.74%
MREL-TEM
5.91%
5.91%
11.02%
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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56. MAJOR EVENTS IN BNP PARIBAS BANK POLSKA S.A.
IN 2024
2.01.2024
Extraordinary General Meeting of Shareholders of Campus Leszno Sp. z o.o. - adoption of a
resolutions to dissolve the company and open its liquidation
29.02.2024
Appointment of the Management Board of BNP Paribas Bank Polska S.A. for a new term of office
13.03.2024
Accelerated book building process (ABB)
Notifications from the shareholder of BNP Paribas Bank Polska S.A. (the Bank) - BNP Paribas SA (the
Shareholder) - of: (i) the commencement of the process of selling a portion of the Bank's shares held by it
under the accelerated bookbuilding process, (ii) the completion of the ABB process.
20 March 2024. - Information from the Shareholder on the change in its share in the total number of votes
in the Bank. As a result of the settlement of block transactions concluded on 14 March 2024 in connection
with the completion of the ABB process concerning 8,860,616 Bank shares and the settlement of other
transactions made on the regulated market concerning 6,545 Bank's shares, the share of BNP Paribas SA
in the total number of votes at the Bank's General Meeting decreased by approximately 6%.
As a result of the settlement of the transactions, as at the date of the notification, BNP Paribas SA directly
holds 84,634,166 shares in the Bank representing approximately 57.31% of the shares in the Bank's share
capital and in the total number of votes at the Bank's general meeting, and together with its subsidiary BNP
Paribas Fortis SA/NV holds a total of 120,124,392 shares in the Bank representing approximately 81.34%
of the shares in the Bank's share capital and in the total number of votes at the Bank's General Meeting.
28.03.2024
Conclusion of a synthetic securitisation transaction on a portfolio of corporate loans/advances with a
total value of PLN 2,180 million (as at 31 December 2023) (the Transaction) with International Finance
Corporation (IFC)
The main objective of the Transaction is to release capital that the Bank will use to finance climate change
mitigation projects. As part of the Transaction, the Bank transferred to IFC a significant portion of the credit
risk from the selected securitised portfolio. The selected securitised loan portfolio remains on the Bank's
balance sheet. The termination date of the Transaction according to the agreement is 31 December 2031.
The transfer of risk of the securitised portfolio is implemented through a credit protection instrument in the
form of a financial guarantee of up to PLN 218 million, issued by the IFC. The Transaction meets the
requirements for the transfer of a material portion of risk set out in the CRR Regulation and has been
structured as meeting the STS criteria (simple, transparent and standard securitisation) in accordance with
Regulation 2021/557.
BNP Paribas SA acted as the arranger of the Transaction.
3.04.2024
Statement of the National Securities Depository S.A. (KDPW) on conditional registration in the
securities depository maintained by the KDPW of up to 1,200,000 Series N ordinary bearer shares of BNP
Paribas Bank Polska S.A. with a par value of PLN 1 each.
Resolution of the Warsaw Stock Exchange S.A. (WSE) on the admission and introduction to exchange
trading on the WSE Main Market of up to 1,200,000 series N ordinary bearer shares of BNP Paribas Bank
Polska S.A. with a par value of PLN 1 each.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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5.04.2024
Issue of series M shares and series N shares under the conditional share capital increase and
change in the value of the share capital of BNP Paribas Bank Polska S.A.
In accordance with the relevant statements of the National Securities Depository (KDPW) and resolutions
of the Board of Directors of the Warsaw Stock Exchange (WSE) - the Bank's current report No. 16/2024 -
registration with the KDPW and admission to trading by the WSE took place:
− 44,608 series M ordinary bearer shares of the Bank (Series M Shares) with a nominal value of PLN 1
each, and the recording of these shares in the securities accounts of authorized persons,
− 78,316 ordinary bearer shares of the Bank, series N (Series N Shares) with a nominal value of PLN 1
each and the recording of these shares in the securities accounts of eligible persons.
Series M Shares were issued as part of the Bank's conditional share capital increase pursuant to Resolution
No. 5 of the Bank's Extraordinary General Meeting of January 31, 2020, as amended by Resolution No. 37
of the Bank's Annual General Meeting of 29 June 2020. Series M shares were subscribed for in exercise
of the rights under Series A4 registered subscription warrants previously subscribed for, each of which
entitled the holder to subscribe for one Series M share.
The Series N Shares were issued as part of a conditional increase in the Bank's share capital pursuant to
Resolution No. 39 of the Bank's Annual General Meeting of 27 June 2022. The Series N Shares were
subscribed for in exercise of rights under Series B1 registered subscription warrants previously subscribed
for, each of which entitled the holder to subscribe for one Series N Share.
Pursuant to Article 451 § 2, second sentence, of the Commercial Companies Code, the grant of Series M
Shares and Series N Shares became effective upon their recording in the securities accounts of the eligible
persons.
Accordingly, pursuant to Article 451 § 2 in conjunction with Article 452 § 1 of the Commercial Companies
Code, the rights from:
− 44,608 Series M Shares with a nominal value of PLN 44,608,
− 78,316 Series N Shares with a nominal value of PLN 78,316,
i.e. a total of 122,924 shares of the Bank with a total nominal value of PLN 122,924, and an increase in the
Bank's share capital from PLN 147,676,946 to PLN 147,799,870, which is divided into 147,799,870 shares
with a nominal value of PLN 1 each.
16.04.2024
Annual General Meeting of Shareholders of BNP Paribas Bank Polska S.A.
Adoption of a resolution on, among others, the payment of dividend for 2023 in the amount of PLN
503,997.556.70, i.e. PLN 3.41 per share. The dividend covers all shares issued by the Bank, i.e.
147,799,870 shares. Dividend date: 23 April 2024, dividend payment date: 10 May 2024.
14.05.2024
Entry into the National Court Register of the amendments to the Articles of Association of BNP
Paribas Bank Polska S.A. i.e. increase of the Bank's share capital up to PLN 147,799,870 as a result of
subscription of Series M shares and Series N shares by eligible persons under the conditions specified in
§ 29a Section 2 item d) and § 29b Section 2 item a) of the Articles of Association of BNP Paribas Bank
Polska S.A.
3.06.2024
Determination of the minimum level of own funds and eligible liabilities (MREL) by the BGF for BNP
Paribas Bank Polska S.A.
The MREL requirement for the Bank has been set at an individual level at 16.02% of the total risk exposure
(TREA) and 5.91% of the total exposure measure (TEM). The Bank was required to meet the requirement
immediately upon receipt of the information. As of the date of receipt of the BGF's letter, the Bank was in
compliance with the MREL requirements set forth in the body of the letter.
18.06.2024
Entry into the National Court Register of the amendments to the Articles of Association of BNP
Paribas Bank Polska S.A. adopted by the Annual General Meeting of the Bank on 16 April 2024.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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2.07.2024
Extraordinary General Meeting of Shareholders – adoption of a resolutions on:
− the assessment of the individual adequacy of the candidate for the Supervisory Board and
appointment of a new member, Ms Monika Kaczorek, to the Supervisory Board of BNP Paribas
Bank Polska S.A., effective 3 July 2024,
− assessment of the collective adequacy of the Supervisory Board of BNP Paribas Bank Polska
S.A. in relation to the change in the composition of the Supervisory Board,
− amendment to Resolution No. 8 of the Extraordinary General Meeting of BNP Paribas Bank
Polska S.A. dated 17 June 2021 regarding the determination of the remuneration of the members
of the Supervisory Board of BNP Paribas Bank Polska S.A. (‘Resolution No. 8’), Resolution No.
37 of the Annual General Meeting of 27 June 2022 on amending Resolution No. 8 and Resolution
of the Annual General Meeting of BNP Paribas Bank Polska S.A. of 30 June 2023 on amending
Resolution No. 8,
− amendments to the Bank's Articles of Association and the unified text of the Articles of Association;
the amendments resulted from the necessity to adjust the Bank's scope of business to the Banking
Law amended by the Act - Act on amending certain acts in connection with ensuring the
development of the financial market and the protection of investors on this market of 16 August
2023 (Journal of Laws of 2023, item 1723) with respect to brokerage activity.
26.08.2024
Entry into the National Court Register of the amendments to the Articles of Association of BNP
Paribas Bank Polska S.A. adopted by the Annual General Meeting of the Bank on 2 July 2024.
17.09.2024
Request from the Polish Financial Supervision Authority (PFSA) for the Financial Stability
Committee to provide an opinion on the determination of the amount of the Other Systemically
Important Institution (O-SII) buffer for the Bank, the adequate amount of which, according to the
principles resulting from the methodology established by the PFSA, should be set at the equivalent of 0.5%
of the total risk exposure amount. The current O-SII buffer set for the Bank is the equivalent of 0.25% of
the total risk exposure amount.
22.11.2024
Obtaining corporate consents required for the issuance of Additional Tier 1 Instruments (AT1)
The Supervisory Board of the Bank passed a resolution expressing consent to the issue of capital bonds
referred to in Art. 27a of the Act of 15 January 2015 on Bonds, in Polish zlotys ("Capital Bonds in PLN").
The Capital Bonds in PLN will be instruments without a specified redemption date, entitling the holder to
receive interest indefinitely, provided that the Bank may redeem them early on the terms specified in the
conditions of issue.
The total nominal value of the issue of the Capital Bonds in PLN will not exceed PLN 650,000,000, and the
nominal value of one Capital Bond in PLN will be PLN 500,000. The interest rate will be determined based
on market conditions and will be based on the Wibor 3M reference rate and a margin.
The Capital Bonds in PLN will be acquired exclusively by BNP Paribas S.A. headquartered in Paris.
The Capital Bonds in PLN will be classified as the Bank's own funds as additional instruments in Tier I
capital after the Bank has obtained the appropriate consent from the PFSA. The consent of the Supervisory
Board is required in relation to Art. 27m of the Act of 15 January 2015 on Bonds.
22.11.2024
The Extraordinary General Meeting of Shareholders of Campus Leszno Sp. z o.o. – adoption of a
resolution to close the liquidation of the company
28.11.2024
Issue of Additional Tier 1 (AT1) instruments
The Bank issued the Capital Bonds referred to in Article 27a of the Bond Act of 15 January 2015 (the
‘Capital Bonds’), which were acquired by BNP Paribas SA, Paris, on 28 November 2024, for the value and
under the terms and conditions set out in the resolution of the Supervisory Board of 22 November 2024.
The terms and conditions of the issue of the Capital Bonds do not provide for the possibility of conversion
into shares of the Bank, but only for their redemption in the form of an interim write-down.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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Based on the approval of the PFSA on 31 December 2024, the Capital Bonds were classified as additional
instruments in Tier 1 capital.
6.12.2024
Decision of the Polish Financial Supervision Authority on the determination of the amount of the Other
Systemically Important Institution (‘O-SII’) buffer to be imposed on the Bank, equivalent to 0.50% of the
total risk exposure amount calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013 of
the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit
institutions and amending Regulation (EU) No 648/2012 (OJ EU L 176 of 27 June 2013, as amended).
The O-SII buffer previously applicable to the Bank was 0.25% of the total risk exposure amount.
17.12.2024
The Polish Financial Supervision Authority did not set an additional capital charge for BNP Paribas
Bank Polska S.A. under Pillar II (P2G) to absorb potential losses arising from stress events.
The Bank's sensitivity to the possible materialisation of stress scenarios affecting the level of own funds
and risk exposure was assessed as low.
Changes to the composition of the Bank's Supervisory Board in 2024 are described in Note 1 Information about the Bank
57. SUBSEQUENT EVENTS
Adapting the Bank to the requirements related to the implementation of the CRR 3 / CRD 6 regulation package
The Bank has adjusted internal procedures, systems, and documentation in connection with the implementation of the Regulation
of the European Parliament and Council (EU) 2024/1623 of 31 May 2024 amending Regulation (EU) No 575/2013 as regards
requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor.
Starting from January 2025, the Bank applies the following methods for determining the capital requirement under Pillar I: updated
standard method for credit risk, new standard method for operational risk, and standard method for market risk.
As part of the completed implementation project, the Bank introduced necessary adjustments in the calculation of the capital
requirement for credit risk, which are discussed below.
1) As part of the new class of exposures secured by property mortgages and ADC exposures, the Bank:
● implemented new definitions, in particular the concept of income generating property exposures (so-called IPRE exposure)
and exposures related to the land acquisition, development and construction (so-called ADC exposure);
● developed a data-collection process for identifying eligibility criteria in relation to mortgage collateral;
● updated rules for assigning risk weights and segmentation of individual exposures within the exposure class;
● adjusted the process for new real estate valuation rules and updated the internal model for their valuation.
2) In terms of off-balance sheet exposures, the Bank:
● implemented a process related to the identification.n of liabilities entered into with counterparties, according to new definitions;
● updated segmentation of off-balance sheet exposures to new buckets and the credit conversion factors (CCF) assigned to
them.
3) In terms of exposure to institutions, the Bank:
● implemented a new SCRA (Standardised Credit Risk Assessment Approach) method in relation to institutions for which it does
not have information about the assigned external rating;
● updated rules for assigning risk weights for institutions with an external rating.
4) Regarding exposures associated with specialised lending, the Bank:
● implemented a process of segmenting exposures related to specialised lending into appropriate subcategories;
● adjusted the rules for assigning risk weights and developed a data-collection process for project information.
5) In terms of retail exposures, the Bank:
● identified exposures to the transactor, for which it assigns a preferential risk weight;
● adjusted the classification of retail exposures to the updated definition.
6) In terms of equity exposures, the Bank:
● took into account the new treatment of equity exposures in terms of assigning risk weights.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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The Bank takes into account transitional provisions that allow the use of preferential approaches in the scope of individual exposure
classes and rules for assigning the credit conversion factor for off-balance sheet exposures. Additionally, the Bank continuously
monitors the register of documents published by the EBA, which are refining various issues related to the changes resulting from
the CRR 3 Regulation.
The Bank has also made changes in operational risk, including implementing a new method for calculating requirements and
updating the operational risk management framework.
Due to the postponement of the implementation of the modified rules for determining capital requirements for the trading book,
within the so-called FRTB (Fundamental Review of Trading Book), the standard method will be applied for the market risk, based
on the rules in effect before 1.01.2025. This means that the interest rate risk requirement will be determined based on the maturity
ladder method, the foreign exchange risk based on the standard method, and non-linear risks resulting from maintaining positions
in option instruments based on the delta-plus method.
As a result of the changes made to the rules for calculating capital requirements, adjustments will also be made to the disclosure
of information under Pillar 3. These changes will apply from the disclosure for 31.03.2025.
The introduction of the above changes to the rules for determining capital requirements (assuming data as at 31 December 2024
for the purposes of calculation) would result in an increase in risk-weighted assets by PLN 2,860,336 thousand and a change in
the Bank's capital ratios by -41 bps for CET1, -43 bps for Tier 1 and -54 bps for the Total Capital Ratio (unaudited data).
The bank constantly monitors its capital position and potential and planned changes to the rules for determining capital
requirements. Taking into account the introduction of the changes described above starting from January 2025, in the fourth quarter
of 2024, the Bank took appropriate adjustment actions in the area of own funds (including by issuing capital bonds - AT1
instruments in November).
After taking into account changes in the rules for determining capital requirements, the Bank meets the regulatory capital
requirements.
Administrative proceedings of the Polish Financial Supervision Authority regarding the imposition of a penalty in
connection with a suspicion of violating the provisions on trading in financial instruments
On January 28, 2025, the Polish Financial Supervision Authority notified the Bank of the initiation of administrative proceedings to
impose an administrative penalty on the Bank under Article 138, paragraph 3, item 3a or Article 138, paragraph 7aa, item 1 of the
Act of August 29, 1997 - Banking Law, in connection with the suspicion that the Bank had violated the provisions of Article 83c,
paragraph 1 of the Act of July 29, 2005 on Trading in Financial Instruments in connection with the Bank's cooperation with
unauthorized third parties, Article 83c, paragraph 3 in connection with paragraph 2 of the Act on Trading in Financial Instruments
by presenting information on financial instruments to the client in an unreliable manner, and Article 9c, paragraph 1, item 4 of the
Banking Law by failing to ensure compliance of the Bank's operations with the provisions of the law and internal regulations.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2024
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SIGNATURES OF THE MANAGEMENT BOARD MEMBERS
OF BNP PARIBAS BANK POLSKA S.A.
12.03.2025
Przemysław Gdański
President of the Management Board
qualified electronic signature
12.03.2025
André Boulanger
Vice-President of the Management
Board
qualified electronic signature
12.03.2025
Małgorzata Dąbrowska
Vice-President of the Management
Board
qualified electronic signature
12.03.2025
Wojciech Kembłowski
Vice-President of the Management
Board
qualified electronic signature
12.03.2025
Piotr Konieczny
Vice-President of the Management
Board
qualified electronic signature
12.03.2025
Magdalena Nowicka
Vice-President of the Management
Board
qualified electronic signature
12.03.2025
Volodymyr Radin
Vice-President of the Management
Board
qualified electronic signature
12.03.2025
Agnieszka Wolska
Vice-President of the Management
Board
qualified electronic signature
Warsaw, 12 March 2025