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