SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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 presentation of financial data .......................................................................................................................... 17
2.5. Measurement of items denominated in foreign currencies ................................................................................................. 17
2.6. Interest income and expenses ............................................................................................................................................ 18
2.7. Net 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 on derecognition of financial assets measured at amortised cost ........................................................................... 20
2.12. Result on 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 granted ............................................................................................................................................. 29
2.23. Employee benefits .............................................................................................................................................................. 29
2.24. Capital ................................................................................................................................................................................ 30
2.25. Issuance of AT1 capital bonds ........................................................................................................................................... 30
2.26. Custody operations............................................................................................................................................................. 31
2.27. Cash and cash equivalents ................................................................................................................................................ 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 ALLOWANCES FOR EXPECTED CREDIT LOSSES ON FINANCIAL ASSETS AND PROVISIONS FOR
CONTINGENT LIABILITIES ........................................................................................................................................ 46
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
3
10. GENERAL ADMINISTRATIVE COSTS .................................................................................................................. 47
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. EARNINGS PER SHARE ....................................................................................................................................... 50
17. CASH AND BALANCES AT CENTRAL BANK ..................................................................................................... 50
18. AMOUNTS DUE FROM BANKS ............................................................................................................................ 51
19. DERIVATIVE FINANCIAL INSTRUMENTS ............................................................................................................ 52
20. HEDGE ACCOUNTING .......................................................................................................................................... 56
21. LOANS AND ADVANCES TO CUSTOMERS MEASURED AT AMORTISED COST ............................................ 62
22. LOANS AND ADVANCES TO CUSTOMERS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS .... 68
23. SECURITIES MEASURED AS AMORTISED COST .............................................................................................. 69
24. SECURITIES MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS ....................................................... 71
25. SECURITIES MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME ......................... 72
26. INVESTMENTS IN SUBSIDIARIES ........................................................................................................................ 73
27. INTANGIBLE ASSETS ........................................................................................................................................... 74
28. PROPERTY, PLANT AND EQUIPMENT ................................................................................................................ 76
29. LEASES .................................................................................................................................................................. 80
30. OTHER ASSETS .................................................................................................................................................... 82
31. AMOUNTS DUE TO BANKS .................................................................................................................................. 82
32. AMOUNTS DUE TO CUSTOMERS ........................................................................................................................ 83
33. LIABILITIES UNDER ISSUED DEBT SECURITIES (INCLUDING SUBORDINATED ISSUES) ............................ 83
34. SUBORDINATED LIABILITIES .............................................................................................................................. 84
35. OTHER LIABILITIES .............................................................................................................................................. 85
36. PROVISIONS .......................................................................................................................................................... 85
37. DEFERRED INCOME TAX ..................................................................................................................................... 87
38. DISCONTINUED OPERATIONS ............................................................................................................................ 88
39. SHARE BASED PAYMENTS ................................................................................................................................. 89
40. CONTINGENT LIABILITIES ................................................................................................................................... 90
41. COLLATERAL ........................................................................................................................................................ 91
42. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES ................................................................................... 91
43. LOAN PORTFOLIO SALE ...................................................................................................................................... 97
44. SECURITISATION .................................................................................................................................................. 98
45. CUSTODY OPERATIONS ...................................................................................................................................... 98
46. SHAREHOLDERS OF BNP PARIBAS BANK POLSKA S.A................................................................................. 98
47. SUPPLEMENTARY CAPITAL AND OTHER CAPITALS ..................................................................................... 100
48. DIVIDENDS PAID ................................................................................................................................................. 102
49. DISTRIBUTION OF RETAINED EARNINGS ........................................................................................................ 102
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
4
50. CASH AND CASH EQUIVALENTS ...................................................................................................................... 102
51. ADDITIONAL INFORMATION REGARDING THE STATEMENT OF CASH FLOWS ......................................... 102
52. RELATED PARTY TRANSACTIONS ................................................................................................................... 103
53. OPERATING SEGMENTS .................................................................................................................................... 106
54. LITIGATION, CLAIMS AND ADMINISTRATIVE PROCEEDINGS ....................................................................... 110
55. FINANCIAL RISK MANAGEMENT ...................................................................................................................... 120
55.1. Financial instrument strategy ............................................................................................................................................ 120
55.2. Credit risk ......................................................................................................................................................................... 120
55.3. Counterparty risk .............................................................................................................................................................. 130
55.4. Interest rate risk in the banking book (ALM Treasury) ...................................................................................................... 131
55.5. Market risk (interest rate risk in the trading book and currency risk) ................................................................................ 135
55.6. Liquidity risk ...................................................................................................................................................................... 137
55.7. Operational risk ................................................................................................................................................................ 141
56. CAPITAL ADEQUACY MANAGEMENT .............................................................................................................. 143
57. MAJOR EVENTS IN BNP PARIBAS BANK POLSKA S.A. IN 2025 ................................................................... 147
58. SUBSEQUENT EVENTS ...................................................................................................................................... 150
SIGNATURES OF THE MANAGEMENT BOARD MEMBERS OF BNP PARIBAS BANK POLSKA S.A. ............... 151
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
5
SELECTED SEPARATE FINANCIAL DATA
Selected separate financial data
PLN’000
PLN’000
EUR’000
EUR’000
Statement of profit or loss
Note
12 months
ended
31.12.2025
12 months
ended
31.12.2024
12 months
ended
31.12.2025
12 months
ended
31.12.2024
Net interest income
4
5,780,421
5,631,813
1,364,530
1,308,446
Net fee and commission income
5
1,181,514
1,188,293
278,909
276,078
Profit before tax
3,691,256
2,903,639
871,360
674,606
Profit after tax
3,012,195
2,320,798
711,061
539,194
Total comprehensive income
3,369,278
2,346,678
795,354
545,207
Statement of cash flows
12 months
ended
31.12.2025
12 months
ended
31.12.2024
12 months
ended
31.12.2025
12 months
ended
31.12.2024
Total net cash flows
3,019,450
2,408,579
712,773
559,588
Ratios
31.12.2025
31.12.2024
31.12.2025
31.12.2024
Number of shares (items)
46
147,880,491
147,799,870
147,880,491
147,799,870
Earnings per share
16
20.29
15.71
4.79
3.65
Statement of financial position
31.12.2025
31.12.2024
31.12.2025
31.12.2024
Total assets
176,310,134
163,087,501
41,713,425
38,166,979
Loans and advances to customers measured at
amortised cost
21
86,786,401
81,189,258
20,532,898
19,000,528
Loans and advances to customers measured at
fair value through profit or loss
22
286,183
452,506
67,708
105,899
Total liabilities
158,839,504
147,775,592
37,580,028
34,583,569
Amounts due to customers
32
141,355,067
130,830,128
33,443,364
30,617,863
Share capital
46
147,880
147,800
34,987
34,589
Total equity
17,470,630
15,311,909
4,133,397
3,583,410
Capital adequacy
31.12.2025
31.12.2024
31.12.2025
31.12.2024
Total own funds
17,407,001
15,916,910
4,118,343
3,724,996
Total risk exposure
102,421,309
90,554,074
24,231,980
21,192,154
Total capital ratio
17.00%
17.58%
17.00%
17.58%
Tier 1 capital ratio
13.70%
14.10%
13.70%
14.10%
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 31.12.2025 - 1 EUR = 4.2267 PLN
● as at 31.12.2024 - 1 EUR = 4.2730 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 1.01.2025 to 31.12.2025 - 1 EUR = 4.2362 PLN
● for the period from 1.01.2024 to 31.12.2024 - 1 EUR = 4.3042 PLN
Calculation of earnings (loss) per share is described in Note 16.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
6
SEPARATE STATEMENT OF PROFIT OR LOSS
Note
12 months ended
31.12.2025
12 months ended
31.12.2024
restated*
Interest income
4
9,583,167
9,905,437
Interest income calculated with the use of effective interest rate
method
8,771,401
8,981,723
interest income on financial instruments measured at
amortised cost
7,849,310
8,131,361
interest income on financial instruments measured at fair
value through other comprehensive income
922,091
850,362
Income similar to interest on instruments measured at fair value
through profit or loss
811,766
923,714
Interest expense
4
(3,802,746)
(4,273,624)
Net interest income
5,780,421
5,631,813
Fee and commission income
5
1,439,476
1,467,058
Fee and commission expenses
5
(257,962)
(278,765)
Net fee and commission income
1,181,514
1,188,293
Dividend income
6
18,118
13,147
Net trading income (including exchange result)
7
1,076,959
865,207
Result on investment activities
8
(2,340)
14,374
Result on hedge accounting
20
(11,161)
1,946
Result on derecognition of financial assets measured at amortised
cost
(19,698)
(35,739)
Net allowances on expected credit losses on financial assets and
provisions for contingent liabilities
9
(155,350)
(225,350)
Result on legal risk related to foreign currency loans
54
(498,751)
(795,728)
General administrative expenses
(2,712,043)
(2,717,137)
Depreciation and amortisation
12
(528,890)
(514,858)
Other operating income
13
206,186
130,848
Other operating expenses
14
(250,357)
(248,206)
Operating result
4,084,608
3,308,610
Tax on financial institutions
(393,352)
(404,971)
Profit before tax
3,691,256
2,903,639
Income tax expense
15
(679,061)
(582,841)
Net profit
3,012,195
2,320,798
attributable to equity holders of the Bank
3,012,195
2,320,798
Earnings (loss) per share (in PLN per one share)
Basic
16
20.29
15.71
Diluted
16
20.27
15.69
* for details of restatement, see Note 2.4 Changes in presentation of financial data
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
7
SEPARATE STATEMENT OF OTHER COMPREHENSIVE
INCOME
Note
12 months ended
31.12.2025
12 months ended
31.12.2024
Net profit for the period
3,012,195
2,320,798
Other comprehensive income
Items that may be reclassified subsequently to profit or loss upon
fulfilment of certain conditions
356,033
27,255
Valuation of financial assets measured at fair value through other
comprehensive income, gross
25
347,318
43,787
Deferred income tax on the valuation of gross financial assets
measured through other comprehensive income
37
(56,160)
(8,320)
Valuation of cash flow hedging derivatives
20
78,145
(10,138)
Deferred income tax on valuation of cash flow hedging derivatives
37
(13,270)
1,926
Items that will not be reclassified to profit or loss
1,050
(1,375)
Actuarial valuation of gross employee benefits
3e
1,576
(1,698)
Deferred income tax on actuarial valuation of gross employee benefits
37
(526)
323
Other comprehensive income (net)
357,083
25,880
Total comprehensive income
3,369,278
2,346,678
attributable to equity holders of the Bank
3,369,278
2,346,678
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
8
SEPARATE STATEMENT OF FINANCIAL POSITION
ASSETS
Note
31 December 2025
31 December 2024
Cash and balances at Central Bank
17
10,224,866
11,325,551
Amounts due from banks
18
11,524,131
7,789,297
Derivative financial instruments
19
2,359,460
2,440,116
Differences from hedge accounting
20
345,550
230,658
Loans and advances to customers measured at amortised cost
21
86,786,401
81,189,258
Loans and advances to customers measured at fair value through profit
or loss
22
286,183
452,506
Securities measured at amortised cost
23
36,180,626
32,364,550
Securities measured at fair value through profit or loss
24
240,409
320,925
Securities measured at fair value through other comprehensive income
25
24,719,802
23,027,454
Investments in subsidiaries
26
108,426
108,426
Intangible assets
27
965,224
978,163
Property, plant and equipment
28
947,435
946,796
Deferred tax assets
37
710,964
685,634
Other assets
30
910,657
1,228,167
Total assets
176,310,134
163,087,501
LIABILITIES
31 December 2025
31 December 2024
Amounts due to banks
31
5,923,407
5,757,872
Derivative financial instruments
19
2,276,575
2,311,741
Differences from hedge accounting
20
320,087
260,025
Amounts due to customers
32
141,355,067
130,830,128
Liabilities under issued debt securities (including subordinated issues)
33
4,226,368
-
Subordinated liabilities
34
-
3,420,128
Lease liabilities
29
553,267
606,204
Other liabilities
35
1,977,881
2,262,300
Current tax liabilities
172,523
358,468
Provisions
36
2,034,329
1,968,726
Total liabilities
158,839,504
147,775,592
EQUITY
31 December 2025
31 December 2024
Share capital
46
147,880
147,800
Supplementary capital
47
9,110,976
9,110,976
Other reserve capital
47
4,648,934
4,024,205
AT1 capital bonds
47
650,000
650,000
Revaluation reserve
47
(184,001)
(541,084)
Retained earnings
3,096,841
1,920,012
retained profit
84,646
(400,786)
net profit for the period
3,012,195
2,320,798
Total equity
17,470,630
15,311,909
Total liabilities and equity
176,310,134
163,087,501
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
9
SEPARATE STATEMENT OF CHANGES IN EQUITY
Share capital
Supplementary
capital
Other reserve
capital
AT1 capital
bonds
Revaluation
reserve
Retained
earnings
Total
As at 1 January 2025
147,800
9,110,976
4,024,205
650,000
(541,084)
1,920,012
15,311,909
Total comprehensive income for the period
-
-
-
-
357,083
3,012,195
3,369,278
Net profit for the period
-
-
-
-
-
3,012,195
3,012,195
Other comprehensive income for the period
-
-
-
-
357,083
-
357,083
Distribution of retained earnings
-
-
658,457
-
-
(1,820,798)
(1,162,341)
Distribution of retained earnings intended for capital
-
-
658,457
-
-
(658,457)
-
Dividends paid out
-
-
-
-
-
(1,162,341)
(1,162,341)
Share issue
80
-
-
-
-
-
80
Interest paid on AT1 capital bonds
-
-
(41,077)
-
-
(14,568)
(55,645)
Management stock options*
-
-
7,349
-
-
-
7,349
As at 31 December 2025
147,880
9,110,976
4,648,934
650,000
(184,001)
3,096,841
17,470,630
*the management stock option programme is described in Note 39
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
10
Share capital
Supplementary
capital
Other reserve
capital
AT1 capital
bonds
Revaluation
reserve
Retained
earnings
Total
As at 1 January 2024
147,677
9,110,976
3,513,978
-
(566,964)
607,042
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
AT1 capital bonds issue
-
-
-
650,000
-
-
650,000
Management stock options*
-
-
6,397
-
-
-
6,397
As at 31 December 2024
147,800
9,110,976
4,024,205
650,000
(541,084)
1,920,012
15,311,909
*the management stock option programme is described in Note 39
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
11
SEPARATE STATEMENT OF CASH FLOWS
CASH FLOWS FROM OPERATING ACTIVITIES:
Note
12 months ended
31.12.2025
12 months ended
31.12.2024
Net profit (loss)
3,012,195
2,320,798
Adjustments for:
6,902,239
12,962,475
Income tax expense
679,061
582,841
Depreciation and amortisation
12
528,890
514,858
Dividend income
6
(18,118)
(13,147)
Interest income
4
(9,583,167)
(9,905,437)
Interest expense
4
3,802,746
4,273,624
Change in provisions
67,179
426,667
Change in amounts due from banks
51
383,053
8,065,054
Change in assets due to derivative financial instruments
(34,236)
570,467
Change in loans and advances to customers measured at amortised
cost
51
(5,678,774)
(117,129)
Change in loans and advances to customers measured at fair value
through profit or loss
166,323
201,076
Change in amounts due to banks
51
168,373
(113,260)
Change in liabilities due to derivative financial instruments
103,041
(296,282)
Change in amounts due to customers
51
10,584,232
3,781,045
Change in other assets and deferred tax assets
301,930
(431,136)
Change in other liabilities and current income tax liabilities
(278,349)
134,307
Other adjustments
51
140,103
(59,943)
Interest received
10,156,299
10,124,278
Interest paid
(3,638,994)
(4,090,806)
Tax paid
(945,961)
(683,561)
Lease fees for short-term leases not included in the valuation of the
liability
(1,392)
(1,041)
Net cash flows from operating activities
9,914,434
15,283,273
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
12
CASH FLOWS FROM INVESTING ACTIVITIES:
12 months ended
31.12.2025
12 months ended
31.12.2024
Inflows
176,136,370
241,785,413
Sale of securities
176,081,177
241,748,903
Sale of intangible assets and property, plant and equipment
37,075
13,063
Dividends received and other investment income
18,118
13,147
Disposal of shares in subsidiaries and liquidation of subsidiaries
-
10,300
Outflows
(182,237,227)
(254,811,674)
Purchase of securities
(181,771,624)
(254,347,370)
Purchase of intangible assets and property, plant and equipment
(465,603)
(464,304)
Net cash flows from investing activities
(6,100,857)
(13,026,261)
CASH FLOWS FROM FINANCING ACTIVITIES:
12 months ended
31.12.2025
12 months ended
31.12.2024
Inflows
4,184,513
1,945,797
Long-term loans received and subordinated liabilities
-
1,295,674
Debt securities issue (including subordinated issues)
4,184,433
-
AT1 capital bonds issue
-
650,000
Net inflows from issuance of shares and return of capital contributions
80
123
Outflows
(4,978,640)
(1,794,230)
Repayment of long-term loans received and subordinated liabilities
(3,608,193)
(1,148,623)
Repayment of lease liabilities
(139,407)
(141,609)
Interest paid on AT1 capital bonds
(68,699)
-
Dividends paid out
(1,162,341)
(503,998)
Net cash flows from financing activities
(794,127)
151,567
TOTAL NET CASH AND CASH EQUIVALENTS
3,019,450
2,408,579
Cash and cash equivalents at the beginning of the period
18,209,851
15,801,272
Cash and cash equivalents at the end of the period
50
21,229,301
18,209,851
Effect of exchange rate fluctuations on cash and cash equivalents
(97,104)
(91,498)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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 Marcina Kasprzaka 2, 01-211 Warsaw, Poland. The Bank is
registered in Poland by the District Court for the capital city of Warsaw, 13
th
Commercial Division of the National Court Register,
under number KRS 0000011571. The duration of the parent entity and the entities of the Capital Group is unlimited.
Since 27 May 2011, pursuant to the decision of the Management Board of the Warsaw Stock Exchange (WSE), the Bank’s shares
have been listed on WSE and classified as finance - banking sector.
As at 31 December 2025, the headcount of the Bank was 7,426 FTEs, as compared to 7,746 FTEs as at 31 December 2024.
BNP Paribas is a universal commercial bank offering a wide range of banking services provided to individual and institutional
customers in accordance with the scope of services specified in the Bank’s Articles of Association. 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 at 31 December 2025:
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
Changes to the composition of the Bank’s Management Board in the period from 1 January to 31 December 2025 and until the
signing of these separate financial statements:
● on 21 October 2025, Mr Andre Boulanger resigned as Vice-President of the Bank’s Management Board, Head of Corporate
and Institutional Banking (CIB) as of 31 December 2025,
● on 10 December 2025, Ms Natalie Yacoubian was appointed Vice-President of the Bank’s Management Board, Head of
Corporate and Institutional Banking (CIB) as of 1 January 2026,
● on 2 January 2026, Ms Agnieszka Wolska resigned as Vice-President of the Bank’s Management Board as of 2 January 2026.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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Composition of the Bank’s Supervisory Board as at 31 December 2025:
FULL NAME
FUNCTION HELD IN THE SUPERVISORY BOARD OF THE BANK
Lucyna Stańczak-Wuczyńska
Chairperson of the Supervisory Board, Independent Member
Francois Benaroya
Vice-Chairperson 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
Bożena Leśniewska
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
Member of the Supervisory Board
Changes in the composition of the Supervisory Board in the period from 1 January to 31 December 2025:
● on 15 April 2025, the Annual General Meeting of the Bank appointed Ms Bożena Leśniewska as Independent Member of the
Bank’s Supervisory Board as of 15 April 2025 until the end of the current five-year joint term of office of the members of the
Supervisory Board,
● on 28 April 2025, Mr Mariusz Warych announced his resignation as Chairperson of the Audit Committee of the Supervisory
Board as of 28 June 2025,
● on 6 May 2025, Mr Francois Benaroya announced his resignation as Member of the Audit Committee of the Supervisory Board
as of 28 June 2025,
● on 7 May 2025, the Supervisory Board appointed Mr Jacques Rinino as Member of the Audit Committee of the Supervisory
Board as of 28 June 2025,
● on 7 May 2025, the Supervisory Board appointed Ms Monika Kaczorek as Chairperson of the Audit Committee of the
Supervisory Board as of 28 June 2025.
Approval of the financial statements for publication
The present Separate Financial Statements have been prepared as at 31 December 2025 and approved for publication by the
Management Board of the Bank on 4 March 2026.
The Consolidated Financial Statements of BNP Paribas Bank Polska S.A. Capital Group have been prepared as at 31 December
2025 and approved for publication by the Management Board of the Bank on 4 March 2026.
Data included in the above mentioned financial statements are presented for the financial year ended 31 December 2025 with
comparative data for the financial year ended 31 December 2024.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 of the Bank 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 of the Bank have been prepared in Polish zloty and all amounts, 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 the 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 already 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 UE
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.
Amendments to 19:
Subsidiaries without
Public Accountability:
Disclosures
21.08.2025
01.01.2027
No
The amendments cover new or amended IFRS issued
between 28 February 2021 and 1 May 2024 that were not
considered when IFRS 19 was first issued.
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 2025
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Amendments to IAS 21:
Changes in Foreign
Exchange Rates:
Translation to a
Hyperinflationary
Presentation Currency
13.11.2025
01.01.2027
No
The amendments clarify among others how entities
translate financial statements from a non-hyperinflationary
functional currency into a hyperinflationary presentation
currency and how to proceed where the entity’s
presentation currency is no longer a hyperinflationary
currency but the entity’s functional currency remains a non-
hyperinflationary currency.
The changes will not have a significant impact on the
Bank’s financial statements.
New standards, interpretations and amendments to the existing standards issued by the
International Accounting Standards Board (IASB), approved by the European Union but not yet
effective and not implemented by the Bank yet
Standards /
Interpretations
Date of
issue/
publication
Date of
entry into
force in
UE
Date of
approval by
EU
Description of changes
Amendments to IFRS
9 and IFRS 7:
Changes to the
classification and
measurement of
financial instruments
30.05.2024
01.01.2026
27.05.2025
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.
Amendments to IFRS
9 and IFRS 7: Nature-
dependent electricity
contracts
18.12.2024
01.01.2026
30.06.2025
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.
Annual Improvements
to IFRS - Volume 11
18.07.2024
01.01.2026
09.07.2025
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.
IFRS 18 Presentation
and Disclosure of
Information in Financial
Statements
9.04.2024
01.01.2027
16.02.2026
IFRS 18 introduces new presentation and disclosure
requirements in the financial statements for all entities
applying IFRS standards.
The Bank analyses 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 2025
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New standards, interpretations and amendments to the existing standards issued by the
International Accounting Standards Board (IASB), approved by the European Union, effective and
applied by the Bank
Standards /
Interpretations
Date of
issue/
publication
Date of
entry into
force in
UE
Date of
approval by
EU
Description of changes
Amendments to IAS 21
Changes in Foreign
Exchange Rates:
Nonexchangeability 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 do not have a significant impact on the
Bank’s financial statements.
2.4. Changes in presentation of financial data
Compared to the financial statements prepared for the year ended 31 December 2024, the Bank has changed the method of
presentation of:
● gains/losses on sale of securities measured at amortised cost
Before the change, gains/losses on sale of such instruments were presented under net trading income; after the change, they are
presented under the result on derecognition of financial assets measured at amortised cost. The table below presents the details:
Separate statement of profit and loss
12 months ended
31.12.2024
change
12 months ended
31.12.2024
before the
change
after the change
Net trading income (including exchange result)
841,037
24,170
865,207
Result on derecognition of financial assets measured at amortised
cost
(11,569)
(24,170)
(35,739)
● income from write-down of overdue funds in customer accounts
Before the change, income from write-down of overdue funds in customer accounts was presented under fee and commission
income; after the change, it is presented under other operating income. The table below presents the details:
Separate statement of profit and loss
12 months ended
31.12.2024
change
12 months ended
31.12.2024
before the
change
after the change
Fee and commission income
1,481,276
(14,218)
1,467,058
Other operating income
116,630
14,218
130,848
In the opinion of the Bank, the changes to presentation outlined above are a better reflection of the economic nature of such items
and consequently provide more useful information to recipients of the 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.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 2025 and 31 December 2024
are presented in the table below:
31.12.2025
31.12.2024
1 EUR
4.2267
4.2730
1 USD
3.6016
4.1012
1 GBP
4.8399
5.1488
1 CHF
4.5390
4.5371
2.6. Interest income and expenses
The statement of profit or loss 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 and income 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).
Interest income and expenses are presented in Note 4 Net interest income.
2.7. Net 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 granted
(guarantees and credit facilities).
Fees for the Bank’s commitment to grant a loan or advance (commissions on 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 recognises 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.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 recognises this type of income when the basis of its calculation is certain.
Debit and credit cards
Under debit card agreements with customers, the Bank recognises 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 recognises commissions throughout the
service provision period.
Commitments to grant loans and advances
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 disbursement, such as preparation commissions. Despite the provision
of the service over time, the Bank recognises the revenue on account of the commission at the moment of the decision regarding
the disbursement 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 recognises
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 customers. The Bank’s remuneration depends on the valuation of assets in the portfolio under management. The
Bank recognises 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 recognises 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 constitutes an integral part of the fee for the offered financial instrument.
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 fee and 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 fee and commission
income upon sale or renewal (if the renewal is significant) of a bancassurance product.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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Recognition of bancassurance expenses for related transactions
Expenses directly related to the sale of a 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 income is recognised under fee and 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.
Net fee and commission income are presented in Note 5 Net fee and commission income.
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.
Dividend income is presented in Note 6 Dividend income
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).
Net trading income is presented in Note 7 Net trading income (including result on foreign exchange).
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 interest.
Result on investment activities is presented in Note 8 Result on investment activities.
2.11. Result on derecognition of financial assets measured at amortised
cost
Derecognition of financial instruments measured at amortised cost applies to cases of material modification (for a description of
the identification and recognition of material modifications, see Note 2.16 Classification and measurement of financial assets and
liabilities, Modification of financial assets).
2.12. Result on 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 54 Litigation, claims and administrative proceedings.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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2.13. Other operating income and expenses
Other operating income and expenses 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 CHF.
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).
Other operating income and expenses are presented in Note 13 Other operating income and Note 14 Other operating expenses
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
(or reimbursable) using tax rates and regulations valid in law or in fact as at the end of the reporting period.
Income tax expense is presented in Note 15 Income tax expense
2.15. Bank tax
Tax on certain financial institutions (“bank tax”) is a property tax presented in the statement of profit or loss under 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 as at 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:
● the 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 option at the moment of initial recognition of the financial asset to classify it irrevocably 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.
Investments in equity instruments
Investments in equity instruments are measured at fair value through profit or loss. At initial recognition, an irrevocable choice to
recognise 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 is not 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.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 realised through the collection of contractual cash flows, the Bank analyses 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 or 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 realisation 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. Interest is 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.
When assessing whether contractual cash flows constitute solely payments of 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 payments of principal
and interest on the outstanding principal.
A financial asset is measured at amortised cost if both of the following conditions are met:
● the 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.
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A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:
● the 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
recognised in the statement of profit or loss under Result from derecognition of financial assets measured at amortised cost.
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 cash flows discounted using the original effective interest
rate, and the result arising from the immaterial modification is recognised 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.
Recognition of the impact of legal risk resulting from legal proceedings concerning CHF mortgage loans
In terms of recognising 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. 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.
Impairment of financial assets
The requirements of IFRS 9 relating to impairment are based on the expected credit loss model.
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 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 impairment of the loan was not identified from
the moment of its granting, the Bank recognises 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 shortfalls in the expected life of a financial asset
weighted with probability of default 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 recognises 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 origination 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.
Netting
Financial assets and liabilities are netted and presented in the statement of financial position at net amount, if a valid and
exercisable netting right occurs and the Bank intends to settle a financial asset and a financial liability net or simultaneously settle
the amount due.
Securitisation
When entering into a securitisation transaction, the Bank analyses the transaction and checks whether, in light of the provisions of
IFRS 9, the contractual terms of the securitisation meet the requirements for derecognising the securitised assets from the Bank’s
statement of financial position. If the requirements are met, the assets are derecognised from the Bank’s statement of financial
position; otherwise, the securitisation portfolio remains recognised on the Bank’s books.
The securitisation transaction is described in Note 44 Securitisation.
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Repo and sell buy back transactions
Securities sold under repo and sell buy back transactions are not derecognised 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.
Recognition and derecognition of financial assets and liabilities from the statement of financial position
The Bank recognises a financial asset or liability in the statement of financial position when it becomes a party to the contract of
such an instrument. Standardised purchase and sale transactions of financial assets are recognised at the date of the transaction,
which is the date when the Bank makes the commitment to purchase or sell a given financial asset. Standardised 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. Standardised purchase or sale transactions
refer in particular to FX spot 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 derecognises 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, or:
● when the Bank retains contractual rights to receive cash flows from a financial asset, but assumes a 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 amortisation 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 amortisation period or method, respectively, and treated as changes in estimates. Amortisation charges
on intangible assets with a defined useful life are recognised in the statement of profit or loss under “Amortisation”.
An intangible asset created as a result of development work (or completion of the development stage of an internally conducted
project) is recognised 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 others, the Bank can prove
the existence of a 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.
Standard intangible assets (with defined useful life and those that are used) are subject to annual impairment tests.
Purchased software licenses are capitalised in the amount of costs incurred for the purchase of a given software and its adaptation
for use. Capitalised 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.
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Amortisation 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.
Intangible assets is presented in Note 27 Intangible assets.
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 utilisation, 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 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 and 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.
Property, plant and equipment is presented in Note 28 Property, plant and equipment.
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 recognises 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. 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;
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● 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 recognised at such time 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.
Hedge accounting is presented in Note 20 Hedge accounting.
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 covered by 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 effect 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 provisions 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 recognise 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.
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.
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The Bank creates provisions for legal proceedings when it acts as a defendant 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 unfavourable outcome for the Bank.
Provisions are presented in Note 36 Provisions.
2.21. Leases
Bank as a lessee
On the commencement date of the lease, the Bank recognises 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 lease contract (right to use an asset presented in
position property, plant and equipment).
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 previously.
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 recognise the asset components due to the right of use in
the case of short-term leases and leases of low-value assets. Short-term leases are defined as leases with a period of no longer
than 12 months as at the commencement 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 when new.
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 lease liabilities:
● fixed lease 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 call 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 an 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 makes them due
and payable 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,
● lease payments made at the time or before the conclusion of the contract less any lease 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 lease contract.
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 lease 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 lease period - then the
right to use is depreciated from the day of commencement until the end of the asset’s useful life.
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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 finance lease agreements. The value of receivables in the amount equal to the net investment in the lease is
recognised in the statement of financial position. Income on finance lease contracts is recognised 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 not transferred to the lessee.
Leases is presented in Note 29 Leases.
2.22. Financial guarantees granted
On initial recognition, a granted financial guarantee contract is measured at fair value.
Granted 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 granted 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.
Financial guarantees granted is presented in Note 40 Contingent liabilities.
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 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 Security 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 covered by the Policy underlies the calculation of the variable remuneration.
Under the current Policy, 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 deferral period.
The deferral 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 an amount
exceeding 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.
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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, severance payments were made to employees made redundant at the employer’s initiative and to employees
covered by voluntary departure programmes.
Liabilities due to incentive and 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 Articles of Association 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 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, if any, reduce the proceeds from the issue
included in the equity.
Other capital
Other capital: supplementary capital, reserve capital and general risk funds are created from profit allocations and are designated
for purposes specified in the Articles of Association or other legal regulations.
Other capital items
Other capital items are created as a result of:
● valuation of financial assets measured 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.
Capital is presented in Separate statement of financial position in part Equity.
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.
A financial instrument is classified as an equity component in accordance with paragraph 16 of IAS 32 if the instrument does not
include a contractual obligation to issue cash or other financial asset to another entity or to exchange financial assets or financial
liabilities with another entity on potentially unfavourable terms for the issuer and if the instrument will be or may be settled in the
issuer's own equity instruments.
Bonds classified as an equity instrument are recognised at fair value at the time of issuance and are not revalued thereafter.
Interest at the time of payment is recognised in the reserve capital.
Issuance of AT1 capital bonds is presented in Separate statement of financial position in part Equity.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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2.26. Custody operations
BNP Paribas Bank Polska S.A. performs custody operations including maintaining securities accounts of customers.
Assets managed under the custody services are not included in the present financial statements as they do not meet the definition
of the Bank’s assets.
Custody operations has been described in more detail in Note 45 Custody operations.
2.27. Cash and cash equivalents
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).
Cash and cash equivalents are presented in Note 50 Cash and cash equivalents.
3. ESTIMATES AND JUDGEMENTS
The Bank makes judgements, estimates and assumptions that affect the value 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
estimates of the value and timing of future cash flows, the value of collateral 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 expected credit loss model.
Financial instruments subject to the assessment 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 of a financial instrument 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 recognises 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 an 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 a 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 at the report date determined for the period from
the report date to the maturity date and the cumulative PD as at 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 2025
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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 others, 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).
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 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 a facility where the exposure has a facility or forborne status,
● granting a facility without significant economic loss where at least one of the following conditions is met:
o a large balloon 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 a debtor 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,
● filing 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 bankruptcy, consumer
bankruptcy), putting the debtor into liquidation, dissolution or cancellation of the company, appointment of an administrator,
appointment of a receiver over the debtor’s activity,
● filing 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 of an application to initiate enforcement proceedings against the customer,
● granting a public moratorium under Article 31fa of the Act of 2 March 2020 on special solutions related to the prevention,
contravention 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 set 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 2025
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A past due credit obligation 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 a grace period, where 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 grace period differs depending on the customer type.
The length of the grace period 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.
The Bank continuously monitors the sensitivity of customer groups/segments to risk factors in the economic and geopolitical
environment.
The detailed assumptions of the identification of customers sensitive to selected risk factors for institutional customers are
presented in Note 55.2 Credit risk.
As at 31 December 2025, exposures to institutional customers considered sensitive was PLN 819,644 thousand. They were
classified as Stage 2 customers affected by a significant increase in credit risk. The total allowance for these customers was PLN
121,471 thousand. As at 31 December 2024, the sensitive customers represented PLN 286,246 thousand and the allowance for
these customers was PLN 7,808 thousand.
Institutional customers considered sensitive as at 31 December 2025 accounted for PLN 819,644 thousand and are classified as
Stage 2 customers affected by a significant increase in credit risk. The total allowance for these customers was PLN 121,471
thousand. As at 31 December 2024, the sensitive customers represented PLN 286,246 thousand and the allowance for these
customers was PLN 7,808 thousand.
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 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.
These customers represented exposures at PLN 305,103 thousand as at 31 December 2025 and PLN 628,057 thousand as at 31
December 2024. Following a review, the Bank revised the assessment of the risk level of sensitive customers using credit holidays
and consequently ceased to recognise the group as sensitive customers (the details are presented in the table on the Post Model
Adjustments).
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 an 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 rate. 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 no event of default was 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 2025
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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
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 at 31 December 2025, the weight of the severe scenario ranged from 0% to
5.59%, depending on the portfolio, and the weight of the pessimistic scenario ranged from 0% to 22.36%.
In the process of calculating the amount of allowances, the following parameters are used:
1) probability of default (PD)
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 IFRS 9, 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)
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 debt enforcement) and the expected
levels of loss if a given path occurs. The probabilities of occurrence of individual paths are determined based on a model using
Markov chains or scoring models and estimations 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 debt enforcement. 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 debt enforcement.
The parameter values resulting from the above model are through-the-cycle. In order to ensure the point-in-time nature required
by IFRS 9, 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) credit conversion factor of granted off-balance sheet liabilities to on-balance sheet receivables (CCF)
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 CCF, 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 PPF, the Bank demonstrated its lack of dependence on macroeconomic factors based on historical data.
5) expected lifetime of the loan (BRL – behavioural lifetime).
For exposures for which there is no contractual lifetime, the behavioural lifetime of the loan is estimated. This value is assigned by
customer segment and credit product type. The estimation of the behavioural lifetime of a loan is based on building a profile of
historically observed lifetime of exposures 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 2025
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In 2025, the Bank made the following significant changes to the IFRS 9 model:
● Change in EAD amortisation granularity in the ECL calculation formula. Following the modification, ECL for Stage 1 and Stage
2 portfolios is calculated on a quarterly rather than annual basis and then aggregated to the appropriate horizon, taking into
account the discounting effect. The change resulted in a reduction of impairment charges by PLN 40,620 thousand.
● Update of the PD model for a portfolio of businesses carrying full books of account, resulting in release of PLN 13,176 thousand
provisions. The change calibrated the model estimating the impact of macroeconomic factors on credit loss by incorporating
the latest observations. The adjustment ensured a better modelling of dependence and eliminated the unrealised conservatism
of previous projections.
● Implementation of a new LGD model for a portfolio of mortgage-backed loans for retail customers, resulting in an addition of
PLN 32,220 thousand provisions. The change implemented a new method of constructing statistical models and a dedicated
approach to atypical events of default observed during the Covid-19 pandemic. The new solution ensures a better modelling
of losses observed in the future.
The Bank verified its Post Model Adjustments (PMA) in 2025. As a result of the review, additional allowances for sensitive
customers using credit holidays were released. In particular, this was due to the stable quality of the portfolio after the credit holiday
scheme was terminated. The adjustment on estimated and planned changes to the LGD model was reversed as the changes were
reflected directly in the LGD model.
As a result of analyses of the business loan portfolio, allowances for specific risks of selected industries were verified. The changes
resulting from the review are presented in the table blow. It should be noted that in the fourth quarter of 2025, the anticipatory
reserve for sensitive customers in the photovoltaic farm segment, created in the third quarter of 2025 (PLN 43,000 thousand), was
dissolved. The Bank reviewed the portfolio exposures in Q4 2025 and reflected the risk expectations directly in the individual
customer ratings.
Type of Post Model Adjustment
31.12.2024
Change
31.12.2025
Customers particularly sensitive to changes in the economic
environment
13,605
(4,348)
9,257
Farmers whose crops were affected by adverse weather events
51,258
(1,800)
49,458
Adjustment of parameters for sensitive customers using credit
holidays
19,168
(19,168)
-
Adjustment for sensitive customers in commercial real estate
segment
31,500
(11,000)
20,500
Adjustment for customers operating in sectors exposed to the
German economy
72,800
(8,663)
64,137
Adjustment for LGD model changes estimated and planned for
implementation
43,700
(43,700)
-
Total
232,031
(88,679)
143,352
In 2025, in the alignment of allowances with expected future macroeconomic factors, the allowances were increased by PLN 5,488
thousand due to an update of the forecast macroeconomic factors included in the IFRS 9 model in Q1 2025. In subsequent
quarters, in view of significant market uncertainty, the Group decided not to include the effect of the forecast macroeconomic
factors in the Group’s results and to maintain more conservative assumptions for allowance estimations. It should also be noted
that the Bank is working on changes to the model for incorporating macroeconomic forecasts into ECL scenario weights which,
according to the Bank’s expectations, should partially offset the effects of macroeconomic projection updates that are not
recognised in the financial result.
Sensitivity of allowances
Allowances for the expected credit losses 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 model parameters
considered to be significant. The process of validation covers both a qualitative and quantitative approach. The process of
estimating impairment allowances is subject to periodic functional control and verified independently by the internal audit.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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
31.12.2025
Percentage
change in the
amount of
allowance
31.12.2025
Change in the
amount of
allowance
31.12.2024
Percentage
change in the
amount of
allowance
31.12.2024
Pessimistic scenario – considering pessimistic
and baseline scenarios only (optimistic scenario
0%, baseline scenario 50%, pessimistic
scenario 40%, severe scenario 10%)
255,237
16%
139,208
8%
Baseline scenario – uniform distribution of
optimistic and pessimistic scenarios (optimistic
scenario 25%, baseline scenario 50%,
pessimistic scenario 15%, severe scenario 10)
95,271
6%
46,080
3%
Optimistic scenario – considering optimistic and
baseline scenarios only (optimistic scenario 50,
baseline scenario 50%, pessimistic scenario
0%, severe scenario 0%)
(80,942)
-5%
(60,388)
-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. Counter-cyclicality 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
31.12.2025
Percentage
change in the
amount of
allowance
31.12.2025
Change in the
amount of
allowance
31.12.2024
Percentage
change in the
amount of
allowance
31.12.2024
PD decrease by 10%
(77,932)
-5%
(78,316)
-5%
PD increase by 10%
77,932
5%
78,315
5%
LGD decrease by 10%
(159,354)
-10%
(172,548)
-10%
LGD increase by 10%
138,036
9%
149,152
9%
The table below shows 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
31.12.2025
Percentage
change in the
amount of
allowance for
exposures
subject to
individual
valuation
31.12.2025
Change in the
amount of
allowance
31.12.2024
Percentage
change in the
amount of
allowance for
exposures
subject to
individual
valuation
31.12.2024
Decrease in present value of estimated future
cash flows for individually assessable
exposures by 10%
58,440
9%
86,136
12%
Increase in present value of estimated future
cash flows for individually assessable
exposures by 10%
(56,320)
-8%
(82,852)
-12%
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 governance factors was defined. In the risk identification process, the significant impact of ESG factors
on credit risk was recognised among others. 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 2026-2028 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 Guidelines on loan origination 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 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 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 governance factors.
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 loan origination and monitoring 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. High ESG risk was identified for 14 customers as at 31 December 2025 with a total balance-
sheet exposure of PLN 31.3 million.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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The early warning indicators (EWA) include ESG indicators. One of the factors in the classification of customers as Doubtful Debts
is the identification of adverse events linked to ESG risk factors. The incorporation of ESG factors helps to identify early indicators
of potential deterioration of credit quality which may result in customer default. The rules for the classification of credit exposures
include ESG factors in the list of criteria which may suggest the debtor’s financial distress. The number of customers and the credit
exposures of customers with identified ESG EWAs, including default customers a key risk indicators which are regularly monitored
and reported to the Risk Management Committee, the Management Board and the Supervisory Board of the Bank. As at 31
December 2025, the Bank identified 6 customers with active ESG EWAs with a total balance-sheet exposure of PLN 40 million.
The Bank runs climate stress tests in order to assess the Bank’s resilience under various climate change scenarios, including
transition risk (e.g. more severe climate policy) and physical risk (greater frequency of floods and droughts). The results show
which portfolios are most exposed to loss due to economic transition or climate change. The share of climate factors in loan loss
provisions refers to the analysis of potential effect of physical risk and transition risk of climate change on asset quality and the
cost of risk in the loan book. This component is designed to make a quantitative determination, looking forward, of how climate
events (such as floods, droughts, extreme heat waves) or regulatory and economic changes related to transition to a low-carbon
economy can increase losses. Practically, this incorporates the potential impact of climate scenarios on the customers’ probability
of default and collateral value. Such measurement helps to estimate the future financial impact of climate risks on the loan book,
to make a forward-looking analysis, and to strengthen risk management and financial resilience in view of climate change risks.
The stress tests are described in detail in the Sustainability Statement included in the Management Board’s Report on the Activities
of the Paribas Bank Polska S.A. Group
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 others, the sector policies in place, watch lists and exclusions, and KYC
(know-your-customer). 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 verification of negative information about customers’ ESG activity, 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.
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.
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 outstanding principal.
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 parameterised 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 traded 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
default, the recovery rate.
For equity instruments not traded 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 realisation of assumed financial projections, market risk
premium associated with an investment in a particular category of financial instruments.
Information on the fair value of financial assets and labilities is presented in Note 42 Fair value of financial assets and labilities.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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d. Impairment of non-current assets
At the end of each reporting period, the Bank verifies whether there is any objective impairment trigger concerning its non-current
assets (including investments in subsidiaries). If such triggers are 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 non-current asset requires the Bank to make assumptions as to the estimated
amounts and dates of future cash flows that may be generated by the Bank on the non-current 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 severance provisions are calculated for each employee separately, using the actuarial method of projected unit credit, by an
independent actuary, equal to the present value of the Bank’s future liabilities to employees based on headcount and wages and
salaries 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 function 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 are 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 (GUS) and the Social Security Institution (ZUS).
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 2025 and 31 December 2024.
increase
by 1 p.p.
decrease
by 1 p.p.
31.12.2025
discount rate
(2,141)
2,486
wage growth rate
2,495
(2,187)
31.12.2024
discount rate
(2,084)
2,427
wage growth rate
2,426
(2,121)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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Reconciliation of present value of retirement, disability and post-mortem benefit obligations
The table below presents the reconciliation of the opening balance and the closing balances of the present value of liabilities due
to retirement, disability and post-mortem benefits:
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
24,187
20,181
current employment costs
2,107
1,961
net interest on net liability
1,205
1,043
actuarial gain or loss
(1,576)
1,698
benefits paid
(659)
(696)
Closing balance
25,264
24,187
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 2025, the
provision amounts to PLN 17,444 thousand (as at 31 December 2024: 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 realisation of the related deferred income tax assets or settlement of deferred income tax
liabilities.
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 liability 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 the temporary differences will not be reversed in the foreseeable future.
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 the abovementioned temporary differences will be
reversed in the foreseeable future and taxable income allowing to offset any negative temporary differences will be generated.
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 realisation of the deferred tax asset will be
realised. 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 Bank offsets
deferred tax assets with deferred tax liabilities if and only if it has an enforceable legal title to compensate corresponding
receivables and payables 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.
The Bank maintains assets linked to provisions set up in connection with the settlement process regarding:
● Settlements 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),
● cancelling CHF-denominated loan agreements.
For details, see Note 54 Litigation, claims and administrative proceedings.
Up to November 2025 and in 2024, current income tax and deferred tax liabilities were calculated using the 19% rate.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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At the end of the reporting period, as a result of the adoption of the change in the CIT rate to 30% in 2026, 26% in 2027 and 23%
in 2028 and subsequent years, the Bank valued deferred tax assets and provisions at the rates that, according to current forecasts,
will apply at the time of realisation of the value of the assets or settlement of the liability.
The measurement is affected by temporary differences which change over time and are the basis for the calculation of the deferred
tax asset and liability as at 31 December 2025, and by the expected settlement periods of such temporary differences.
For details, see Note 37 Deferred income tax.
Pillar Two
The Bank uses an exception from the recognition and disclosure of deferred tax asset and liability information related to income
tax under Pillar Two in accordance with an amendment of IAS 12 issued in May 2023.
Global minimum tax level
The Bank applies an exception to the recognition and disclosure of information on deferred tax assets and liabilities related to
income tax under Pillar II, in accordance with the IAS 12 update issued in May 2023.
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 income 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 operating in Poland 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, based on the available data, it was assumed that entities operating in Polish jurisdiction meet the conditions enabling
the application of temporary safe harbours, which results in the absence of the obligation to carry out full calculations of the national
countervailing tax and the global countervailing tax.
According to the Bank’s assessment, the equalisation tax regulations did not cause an additional tax burden in 2025.
h. Provision for the return of commissions due to early repayment of loans
On 11 September 2019, the CJEU issued a judgment ruling that Article 16(1) of Directive 2008/48/EC of the European Parliament
and of the Council of 23 April 2008 on consumer loan agreements and amending Council Directive 87/102/EEC should be
interpreted in such a way that 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(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 in Świdnik,
which examined three disputes between the company Lexitor, which acquired the claims of three customers, 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(1) of Directive 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 income, in particular on relations expired before
the judgment was issued, the Bank decided in 2019 to create provisions for a proportional refund of commissions in the event of
early repayment of loans in the amount of PLN 48,750 thousand. As at 31 December 2025, the provisions amounted to PLN 8,066
thousand (as at 31 December 2024, the provisions amounted to PLN 10,023 thousand).
The provisions were estimated based on the estimation of the total amount of provisions for early repaid loans and the expected
percentage of customers who will claim for a refund of the due part of the commissions. Assuming that the percentage of customers
is 5 p.p. higher than the assumed level, the amount of the provision will be higher by PLN 12,500 thousand.
The Bank recognises liabilities to customers due to proportional reimbursement of commissions in the event of early loan
repayment in the period from the date of the judgment of the CJEU on 11 September 2019 to 31 December 2019. As at 31
December 2025, this liability amounted to PLN 2,204 thousand (PLN 2,242 thousand as at 31 December 2024).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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Additionally, the Bank sets up provisions to cover the partial reimbursements of loan commissions in the event of early repayment.
The estimate of the provisions is based on the difference between the value of commissions to be reimbursed to customers 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 customers, which reflects the expected average difference between the amounts of commissions to be
reimbursed 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.
In the event of early loan repayment, this provision is used; for newly sold loans, a provision will be created on an ongoing basis.
As at 31 December 2025, the provision amounted to PLN 27,513 thousand (PLN 39,810 thousand as at 31 December 2024).
The total amount of provisions and liabilities related to the CJEU judgment as at 31 December 2025 was PLN 37,783 thousand
(as t 31 December 2024, the provision was PLN 52,074 thousand).
The created provision level is based on estimates and may be changed.
The above provisions are presented by the Bank in Note 36 under Provisions: Provision for litigation; the Bank presents the liability
in Note 35 under Other liabilities: Sundry creditors.
i. 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 the model used by the Bank are presented in
Note 54 Litigation, claims and administrative proceedings.
j. Provision for unauthorized transactions
Proceedings on a practice violating collective consumers interests - unauthorised transactions are described in Note 54 Litigation,
claims and administrative proceedings.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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4. NET INTEREST INCOME
Interest income
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Interest income calculated using effective interest rate
8,771,401
8,981,723
interest income on financial instruments measured at amortised cost
7,849,310
8,131,361
Amounts due from banks
512,156
423,790
Loans and advances to customers measured at amortised cost,
including:
5,999,884
6,404,285
non-bank financial entities
400,438
352,068
retail customers
2,603,555
2,724,364
corporates
2,981,033
3,311,513
including individual farmers
615,606
686,241
public sector institutions
6,735
4,366
lease receivables
8,123
11,974
Debt instruments measured at amortised cost
1,335,267
972,653
Securities purchased under repurchase agreements
2,003
330,633
interest income on instruments measured at fair value through other
comprehensive income
922,091
850,362
Debt instruments measured at fair value through other comprehensive
income
922,091
850,362
Income similar to interest on instruments measured at fair value through
profit or loss
811,766
923,714
Loans and advances to customers measured at fair value through
profit or loss
29,955
50,227
Debt instruments measured at fair value through profit or loss
5,216
7,466
Derivative instruments as part of fair value hedge accounting
737,283
854,393
Derivative instruments as part of cash flow hedge accounting
39,312
11,628
Total interest income
9,583,167
9,905,437
Interest expense
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Amounts due to banks
(399,902)
(496,001)
Liability under issued debt securities
(42,071)
-
Amounts due to customers, including:
(2,275,268)
(2,436,587)
non-bank financial entities
(155,354)
(150,495)
retail customers
(1,163,295)
(1,173,195)
corporates
(807,545)
(970,583)
including individual farmers
(7,564)
(9,560)
public sector institutions
(149,074)
(142,314)
Lease liabilities
(20,748)
(23,274)
Derivative instruments and amortisation of the hedged position as part of fair
value hedge accounting
(980,603)
(1,275,490)
Derivatives under cash flow hedge accounting
(63,816)
(36,561)
Securities sold subject to repurchase agreements
(20,338)
(5,711)
Total interest expense
(3,802,746)
(4,273,624)
Net interest income
5,780,421
5,631,813
The value of interest expense calculated using the effective interest rate in relation to financial liabilities measured at amortised
cost, amounted to PLN 2,758,327 thousand (PLN 2,961,573 thousand for the period of 12 months ended 31 December 2024).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 2025, amounted to PLN 112,057
thousand, as compared to PLN 82,837 thousand for 2024.
5. NET FEE AND COMMISSION INCOME
Fee and commission income
12 months
ended 31.12.2025
12 months
ended 31.12.2024
restated
loans, advances and leases
251,909
269,543
account maintenance
223,030
232,545
cash service
30,353
31,462
cash transfers and e-banking
101,898
108,047
guarantees and documentary operations
76,384
77,320
asset management and brokerage operations
118,389
103,118
payment and credit cards
423,611
414,307
insurance mediation activity
137,856
148,945
product sale mediation and customer acquisition
22,185
23,781
other commissions
53,861
57,990
Total fee and commission income
1,439,476
1,467,058
Fee and commission expense
12 months
ended 31.12.2025
12 months
ended 31.12.2024
loans, advances and leases
(458)
(998)
account maintenance
(9,398)
(9,774)
cash service
(30,466)
(28,566)
cash transfers and e-banking
(3,369)
(2,765)
guarantee obligations and documentary operations
(4,337)
(9,120)
asset management and brokerage operations
(7,279)
(5,428)
payment and credit cards
(108,468)
(121,800)
insurance mediation activity
(19,692)
(21,487)
product sale mediation and customer acquisition
(23,742)
(23,011)
other commissions
(50,753)
(55,816)
Total fee and commission expense
(257,962)
(278,765)
Net fee and commission income
1,181,514
1,188,293
Net fee and commission income for 2025 includes income from custody activities in the amount of PLN 118,389 thousand (PLN
103,118 thousand in 2024) and costs of custody activities in the amount of PLN 7,279 thousand (PLN 5,428 thousand in 2024).
Net fee and commission income includes commission income that relates to assets and liabilities not measured at fair value with
the result of measurement recognised in the statement of profit or loss for 2025 in the amount of PLN 767,231 thousand, and for
2024 in the amount of PLN 814,323 thousand, and commission expense for 2025 in the amount of PLN 87,125 thousand, as
compared to PLN 86,601 thousand for 2024.
Other commissions expenses for 2025 includes PLN 27 003 thousand fees and commisions arising from mobile banking, as
compared to PLN 16 984 thousand in 2024.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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6. DIVIDEND INCOME
Dividend income
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Due to equity instruments measured at fair value through profit or loss
9,772
13,147
Due to interest in subsidiaries
8,346
-
Total dividend income
18,118
13,147
7. NET TRADING INCOME (INCLUDING RESULT ON
FOREIGN EXCHANGE)
Net trading income
12 months
ended 31.12.2025
12 months
ended 31.12.2024
restated
Due to equity instruments measured at fair value through profit or loss
66,829
22,222
Due to debt instruments measured at fair value through profit or loss
(3,718)
2,730
Due to derivative instruments and result on foreign exchange transactions
1,013,848
840,255
Total result on financial instruments measured at fair value through
profit or loss and foreign exchange differences
1,076,959
865,207
including margin on foreign exchange and derivative transactions
with customers
778,785
722,952
8. RESULT ON INVESTMENT ACTIVITIES
Result on investment activities
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Loans and advances to customers measured at fair value through profit or
loss
(1,645)
3,783
Total result on investment activities
(2,340)
14,374
There was no change in the business models operating in the Bank during 2025 and 2024 and, consequently, no change in the
classification of financial assets.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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9. NET ALLOWANCES FOR EXPECTED CREDIT LOSSES
ON FINANCIAL ASSETS AND PROVISIONS FOR
CONTINGENT LIABILITIES
Net allowances for expected credit losses
on financial assets and provisions for
contingent liabilities
12 months ended 31.12.2025
Stage 1
Stage 2
Stage 3
POCI
Total
Amounts due from banks
(44)
(1,464)
-
-
(1,508)
Loans and advances to customers measured at
amortised cost
14,794
(15,886)
(153,793)
(113)
(154,998)
Contingent commitments granted
(21,996)
4,521
18,784
(47)
1,262
Securities measured at amortised cost
(106)
-
-
-
(106)
Total net allowances for expected credit
losses on financial assets and provisions on
contingent liabilities
(7,352)
(12,829)
(135,009)
(160)
(155,350)
Net allowances for expected credit losses
on financial assets and provisions for
contingent liabilities
12 months ended 31.12.2024
Stage 1
Stage 2
Stage 3
POCI
Total
Amounts due from 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 for expected credit
losses on financial assets and provisions for
contingent liabilities
(11,260)
(9,928)
(150,061)
(54,101)
(225,350)
Change of allowances for expected credit losses on financial assets
and provisions for contingent liabilities
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
(2,494,411)
(2,552,156)
Increases due to acquisition or origination
(349,842)
(249,394)
Decreases due to derecognition
371,931
268,003
Net changes in credit risk
(299,817)
(457,175)
Change due to significant modifications
6,962
8,124
Use of allowances
405,061
480,440
Other changes (including foreign exchange differences)
14,558
7,747
Closing balance
(2,345,558)
(2,494,411)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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Net allowances for expected credit losses on financial assets and
provisions for contingent liabilities
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Change in impairment allowances on financial assets and provisions for
contingent liabilities
(239,301)
(401,015)
Change in initial impairment on financial assets classified as POCI
(5,415)
(25,703)
Revenue from the sale and write-off of receivables and costs related to the
write-off of receivables
89,366
201,368
Total net allowances for expected credit losses on financial assets and
provisions for contingent liabilities
(155,350)
(225,350)
10. GENERAL ADMINISTRATIVE COSTS
General administrative costs
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Personnel expenses
(1,586,863)
(1,528,680)
Marketing
(121,595)
(103,893)
IT and telecom expenses
(334,468)
(305,169)
Short-term leases and operation
(88,863)
(82,622)
Other non-personnel expenses
(141,122)
(148,261)
Outsourced services from other contracts and consulting
(93,460)
(265,940)
Business travel
(12,107)
(11,631)
Vehicle operating fees
(28,397)
(26,107)
ATM and cash handling expenses
(31,448)
(29,952)
Costs of outsourcing services related to leasing operations
(918)
(1,445)
Court and notary fees
(53,626)
(49,366)
Bank Guarantee Fund fee
(196,335)
(143,992)
Cost of PFSA supervision
(22,841)
(20,079)
Total general administrative costs
(2,712,043)
(2,717,137)
Total costs related to legal support of court cases concerning CHF loans in the 12 months of 2025 amounted to PLN 59,674
thousand (for 2024: PLN 116,829 thousand) and were included in the lines: Outsourced services from other contracts and
consulting – PLN 7,197 thousand in 2025 (PLN 68,530 thousand in 2024) and Court and notary fees - PLN 52,476 thousand in
2025 (PLN 48,299 thousand in 2024).
11. PERSONNEL EXPENSES
Personnel expenses
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Payroll expenses
(1,265,223)
(1,226,044)
Payroll charges
(228,361)
(218,156)
Employee benefits
(58,456)
(58,002)
Costs of restructuring provision
(1,904)
(649)
Costs of provision for future liabilities arising from unused annual leave and
retirement benefits
(5,966)
(5,237)
Appropriations to Social Benefits Fund
(23,160)
(19,074)
Other
(3,793)
(1,518)
Total personnel expenses
(1,586,863)
(1,528,680)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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48
12. DEPRECIATION AND AMORTISATION
Depreciation and amortisation
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Property, plant and equipment
(211,215)
(216,015)
Intangible assets
(317,675)
(298,843)
Total depreciation and amortisation
(528,890)
(514,858)
13. OTHER OPERATING INCOME
Other operating income
12 months
ended 31.12.2025
12 months
ended 31.12.2024
restated
Sale or liquidation of property, plant and equipment and intangible assets
32,579
19,233
Release of allowances on other receivables
5,011
7,907
Gains on sale of goods and services
17,592
8,651
Release of provisions for litigation and claims and other liabilities
83,212
19,460
Recovery of debt enforcement costs
18,039
19,723
Income from leasing operations
15,555
18,940
Other operating income
34,198
36,934
Total other operating income
206,186
130,848
In 2025, the item Release of provisions for litigation and claims and other liabilities includes income from release of provisions
against the legal risk of relationships with the Bank’s Partners and provisions for potential cost of litigation regarding the cancellation
of credit contracts at PLN 38 million (PLN 2 million in 2024) and provisions for other liabilities at PLN 43 million (PLN 14 million in
2024).
The Bank presents income and cost of released provisions separately: release of provisions is presented under other operating
income and the payment or settlement of liability covered by the provision is presented under other operating expenses.
14. OTHER OPERATING EXPENSES
Other operating expenses
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Cost of sale or liquidation of property, plant and equipment and intangible
assets
(10,095)
(13,614)
Impairment allowances on other receivables
(6,893)
(10,836)
Provisions for litigation and claims and other liabilities
(48,051)
(59,407)
Debt enforcement
(31,993)
(36,200)
Donations made
(9,304)
(7,779)
Costs of leasing operations
(12,278)
(20,318)
Other operating expenses
(131,743)
(100,052)
Total other operating expenses
(250,357)
(248,206)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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49
In 2025, the item Other operating expenses includes the incidental cost of provisions against unauthorised transactions at PLN
49 million (PLN 8 million in 2024), the cost of settlements and enforcement of court judgments paid to the Bank’s Partners at PLN
36 million (PLN 3 million in 2024).
The Bank presents income and cost of released provisions separately: release of provisions is presented under other operating
income and the payment or settlement of liability covered by the provision is presented under other operating expenses.
15. INCOME TAX EXPENSE
12 months ended
31.12.2025
12 months ended
31.12.2024
Current income tax
(774,347)
(666,482)
Deferred income tax
95,286
83,641
Total income tax expense
(679,061)
(582,841)
Profit before income tax
3,691,256
2,903,639
Statutory tax rate
19%
19%
Effective tax rate
18%
20%
Income taxes on gross profit
(701,339)
(551,691)
Permanent differences, including:
(151,838)
(166,685)
Receivables written off
(10,410)
(31,882)
Representation expenses
(1,328)
(927)
PFRON
(2,064)
(2,007)
Prudential fee to the Bank Guarantee Fund
(37,304)
(27,358)
Tax on financial institutions
(74,737)
(76,945)
Research and development relief
12,256
21,254
Provision for claims related to CHF loans
(30,459)
(44,955)
Legal risk provisions
5,783
(1,113)
Other differences
(13,575)
(2,752)
Other amounts affecting the effective tax rate
174,116
135,535
Change in estimate of deferred tax created based on provisions for future
disbursements related to CHF loan cancellation process*
-
135,535
Deferred tax at tax rates expected to apply when the asset is realised or the
provision is released
174,116
-
Total income tax expense
(679,061)
(582,841)
*For details, see Note 54 Litigation, claims and administrative proceedings.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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50
16. EARNINGS PER SHARE
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Basic
Net profit
3,012,195
2,320,798
Weighted average number of ordinary shares (units)
148,447,585
147,767,964
Basic earnings (loss) per share (in PLN per one share)
20.29
15.71
Diluted
Net profit used in determining diluted earnings per share
3,012,195
2,320,798
Weighted average number of ordinary shares (units)
148,447,585
147,767,964
Adjustments for:
- stock options
128,843
148,260
Weighted average number of ordinary shares for the diluted earnings per
share (units)
148,576,428
147,916,224
Diluted earnings (loss) per share (in PLN per share)
20.27
15.69
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 39. 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 cause dilution of profit
per share in the future.
The basic earnings per share are calculated by dividing the net profit by the weighted average number of ordinary shares during
the period.
The diluted earnings per share are 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: stock options. Dilutive shares are calculated as the number of shares that would be issued if all stock options
were exercised at the market price determined as the average annual closing price of the Bank’s shares.
17. CASH AND BALANCES AT CENTRAL BANK
Cash and cash equivalents
31.12.2025
31.12.2024
Cash and other balances
2,541,539
2,382,814
Account in the National Bank of Poland
7,683,669
8,943,135
Gross cash and cash equivalents
10,225,208
11,325,949
Allowance for expected credit losses
(342)
(398)
Total cash and cash equivalents
10,224,866
11,325,551
Change in allowance for expected credit losses
on receivables on funds at the Central Bank
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
(398)
(790)
Changes resulting from the change in credit risk (net)
56
392
Closing balance
(342)
(398)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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51
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 2025, interest on statutory reserve accounts was 4%
(5.75% as at 31 December 2024).
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 2025 was 3.5%. The declared reserve level to be maintained since 31 December 2025
was PLN 4,585,718 thousand.
18. AMOUNTS DUE FROM BANKS
31.12.2025
Stage 1
Stage 2
Stage 3
Total
Gross amounts due from banks
11,494,059
32,002
9
11,526,070
Current accounts
10,986,946
18,926
-
11,005,872
Interbank deposits
16,615
5,189
-
21,804
Loans and advances
-
-
9
9
Other receivables
490,498
7,887
-
498,385
Allowances due to expected credit loss from banks
(558)
(1,377)
(4)
(1,939)
Current accounts
(510)
(926)
-
(1,436)
Interbank deposits
(3)
(9)
-
(12)
Loans and advances
-
-
(4)
(4)
Other receivables
(45)
(442)
-
(487)
Total net amounts due from banks
11 493 501
30 625
5
11 524 131
31.12.2024
Stage 1
Stage 2
Stage 3
Total
Gross amounts due from banks
7,789,824
-
-
7,789,824
Current accounts
6,824,682
-
-
6,824,682
Interbank deposits
60,009
-
-
60,009
Loans and advances
203,173
-
-
203,173
Other receivables
701,960
-
-
701,960
Allowances due to expected credit loss from banks
(527)
-
-
(527)
Current accounts
(391)
-
-
(391)
Loans and advances
(105)
-
-
(105)
Other receivables
(31)
-
-
(31)
Total net amounts due from banks
7,789,297
-
-
7,789,297
Other receivables as at 31 December 2025 include receivables from cash collateral against settlement of derivatives in the gross
amount of PLN 496,464 thousand (PLN 701,960 thousand as at 31 December 2024).
The total gross balance of long-term amounts due from banks as at 31 December 2025 amounted to PLN 94,638 thousand (PLN
701,960 thousand as at 31 December 2024).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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52
Change in allowance due to expected credit losses
on receivables from banks
Stage 1
Stage 2
Stage 3
Total
As at 1 January 2025
(527)
-
-
(527)
Increases due to acquisition or origination
(2,786)
(2,025)
(4)
(4,815)
Decreases due to derecognition
1,579
2,502
-
4,081
Changes resulting from the change in credit risk (net)
1,107
(1,941)
-
(834)
Other changes (including foreign exchange
differences)
69
87
-
156
As at 31 December 2025
(558)
(1,377)
(4)
(1,939)
Change in allowance due to expected credit losses
on receivables from banks
Stage 1
Stage 2
Stage 3
Total
As at 1 January 2024
(666)
(63)
-
(729)
Increases due to acquisition or origination
(4,599)
(534)
-
(5,133)
Decreases due to derecognition
6,666
-
-
6,666
Changes resulting from the change in credit risk (net)
(1,928)
597
-
(1,331)
As at 31 December 2024
(527)
-
-
(527)
19. DERIVATIVE FINANCIAL INSTRUMENTS
Fair value of derivatives held by the Bank is presented in the table below:
Trading derivatives
Nominal value
Fair value
Fair value
31.12.2025
Wartość
nominalna
Assets
Liabilities
Currency derivatives
Foreign Exchange Forward (FX Forward + NDF)
11,962,084
47,570
1,014,109
Currency Swap (FX Swap)
25,534,449
1,497,304
522,909
Currency Interest Rate Swaps (CIRS)
3,316,143
32,398
20,391
OTC currency options
6,660,552
15,756
60,721
Total currency derivatives
47,473,228
1,593,028
1,618,130
Interest rate derivatives
Interest Rate Swap
73,501,096
696,265
589,009
FRA
845,340
-
312
OTC interest rate options
6,876,181
17,702
18,482
Total interest rate derivatives
81,222,617
713,967
607,803
Other derivatives
OTC Commodity Swap
1,313,706
52,465
50,642
Currency Spot (FX Spot)
1,890,734
-
-
Total other derivatives
3,204,440
52,465
50,642
Total trading derivatives
131,900,285
2,359,460
2,276,575
Including: measured using models
131,900,285
2,359,460
2,276,575
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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53
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
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 Commodity Swap
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
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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Fair value of derivatives by maturity*
Fair value of assets
Fair value of liabilities
31.12.2025
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)
47,570
6,537
7,340
22,098
11,595
-
1,014,109
57,778
105,547
402,375
448,409
-
Currency Swap (FX Swap)
1,497,304
85,665
80,293
566,685
764,661
-
522,909
22,668
13,627
101,030
385,584
-
Currency Interest Rate
Swaps (CIRS)
32,398
-
-
6,031
26,295
72
20,391
-
209
-
20,051
131
OTC currency options
15,756
2,256
2,615
5,767
5,118
-
60,721
5,203
9,150
31,118
15,250
-
Total currency
derivatives
1,593,028
94,458
90,248
600,581
807,669
72
1,618,130
85,649
128,533
534,523
869,294
131
Interest rate derivatives
Interest Rate Swap
696,265
1,520
1,461
49,218
367,225
276,841
589,009
5,157
6,651
27,324
350,603
199,274
FRA
-
-
-
-
-
-
312
-
-
312
-
-
OTC interest rate options
17,702
-
1
992
13,999
2,710
18,482
-
1
1,359
14,362
2,760
Total interest rate
derivatives
713,967
1,520
1,462
50,210
381,224
279,551
607,803
5,157
6,652
28,995
364,965
202,034
Other derivatives
OTC Commodity Swap
52,465
20,184
13,739
16,610
1,932
-
50,642
19,850
13,529
15,899
1,364
-
Total other derivatives
52,465
20,184
13,739
16,610
1,932
-
50,642
19,850
13,529
15,899
1,364
-
Total trading derivatives
2,359,460
116,162
105,449
667,401
1,190,825
279,623
2,276,575
110,656
148,714
579,417
1,235,623
202,165
*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 2025
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55
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
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 Swap
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 2025
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Maturity dates:
● for NDF, FX forward, FX swap, currency and index 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 delivered/received: calculated as a difference in days between the transaction value date
and the balance sheet date.
20. HEDGE ACCOUNTING
Fair value hedge
As at 31 December 2025, 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
31.12.2025
21,392,032
-
21,472,628
31.12.2024
18,848,110
-
18,603,684
IRS
Nominal value
Fair value
Assets
Liabilities
31.12.2025
21,392,032
230,410
321,095
31.12.2024
18,848,110
128,395
560,884
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:
31.12.2025 ‑PLN 158,096 thousand
31.12.2024 ‑PLN 482,813 thousand
and the difference in valuation to fair value of hedged items for which the hedging relationship was terminated during its term,
amounting to:
31.12.2025 ‑PLN 7,357 thousand
31.12.2024 ‑PLN 98,875 thousand
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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The table below presents derivative hedging instruments at their nominal value by residual maturity dates as at 31 December 2025
and 31 December 2024:
31.12.2025
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)
230,410
321,095
2,924,039
1,919,216
3,980,430
7,161,408
5,406,939
21,392,032
Hedging derivatives -
total
230,410
321,095
2,924,039
1,919,216
3,980,430
7,161,408
5,406,939
21,392,032
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
In 2025 and 2024, the hedging relationships presented proved effective.
As at 31 December 2025, the Bank used no fair value hedge accounting for fixed-rate loans in PLN (micro fair value hedge).
The hedging relationship as at 31 December 2024 expired in 2025.
Hedging relationship description
The hedges were 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 were fixed-rate loans in PLN.
Hedging instruments
Hedging instruments were standard IRS transactions, i.e. plain vanilla IRS,
denominated in PLN, in which the Bank received a floating rate based on WIBOR
3M and paid a fixed interest rate.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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Hedged position
Nominal value
Fair value
Assets
Liabilities
31.12.2024
1,025,000
1,075,119
-
IRS
Nominal value
Fair value
Assets
Liabilities
31.12.2024
1,025,000
-
46,206
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.
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
The table below presents derivative hedging instruments at their nominal value by residual maturity dates as at 31 December
2024:
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
In 2024, the hedging relationships presented proved effective.
Additionally, the Bank applies micro fair value hedge accounting as at 31 December 2025.
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 and USD SOFR.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
59
Hedged position
Nominal value
Fair value
Assets
Liabilities
31.12.2025
12,326,873
12,447,552
-
31.12.2024
9,319,699
9,362,899
-
IRS
Nominal value
Fair value
Assets
Liabilities
31.12.2025
12,326,873
68,402
99,700
31.12.2024
9,319,699
102,630
120,190
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 table below presents derivative hedging instruments at their nominal value by residual maturity dates as at 31 December 2025
and 31 December 2024:
31.12.2025
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)
68,402
99,700
-
180,080
92,987
5,629,378
6,424,427
12,326,872
Hedging derivatives -
total
68,402
99,700
-
180,080
92,987
5,629,378
6,424,427
12,326,872
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
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
60
Amounts recognised in the statement of profit or loss under fair value hedge accounting:
12 months ended
31.12.2025
12 months ended
31.12.2024
Interest income on hedging derivative instruments
737,283
854,393
Interest expense on hedging derivative instruments
(889,085)
(1,036,163)
Interest expense on amortisation of the hedged position in fair value hedge
accounting
(91,518)
(239,327)
Change in fair value of hedging transactions recognised in the Result on
hedge accounting, including:
(10,971)
1,930
change in fair value of hedging instruments
378,243
56,113
change in fair value of hedged instruments
(389,214)
(54,183)
In 2025 and 2024, the hedging relationships presented proved effective.
Cash flow hedging
Additionally, the Bank applies cash flow hedge accounting as at 31 December 2025.
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 bonds WZ1131 and WZ0330.
Hedging instruments
Hedging instruments include standard IRS transactions, i.e. plain vanilla IRS in
PLN in which the Bank receives a fixed rate and pays a floating rate based on
WIBOR 6M.
Hedged position
Nominal value
Fair value
Assets
Liabilities
31.12.2025
1,325,000
1,291,131
-
31.12.2024
625,000
602,037
-
IRS
Nominal value
Fair value
Assets
Liabilities
31.12.2025
1,325,000
46,738
64,745
31.12.2024
625,000
-
114,433
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.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
61
The table below presents derivative hedging instruments at their nominal value by residual maturity dates as at 31 December 2025
and 31 December 2024:
31.12.2025
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)
46,738
64,745
-
-
-
700,000
625,000
1,325,000
Hedging derivatives -
total
46,738
64,745
-
-
-
700,000
625,000
1,325,000
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
Amounts recognised in the statement of profit or loss under cash flow hedge accounting:
12 months ended
31.12.2025
12 months ended
31.12.2024
Interest income on hedging derivative instruments
39,312
11,628
Interest expense on hedging derivative instruments
(63,816)
(36,561)
Change in fair value of hedging transactions recognised in the Result on
hedge accounting, including:
(190)
16
change in fair value of hedging instruments
(190)
16
change in fair value of hedged instruments
-
-
Changes in revaluation reserve due to valuation of derivative hedging instruments in cash flow hedge accounting.
12 months ended
31.12.2025
12 months ended
31.12.2024
Opening balance
(112,125)
(101,987)
Hedging gains or losses recognised in other comprehensive income during
the reporting period
78,145
(10,138)
Closing balance
(33,980)
(112,125)
In 2025 and 2024, the hedging relationships presented proved effective.
The adjustment of the fair value of the hedged and hedging positions includes the items presented in the table below:
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
62
2025
2024
Adjustment of the fair value of the hedged and
hedging positions
Assets
Liabilities
Assets
Liabilities
Hedging positions:
345,550
485,540
231,025
841,713
Derivatives designated as fair value hedge – IRS
298,812
420,795
231,025
727,280
Derivatives designated as cash flow hedge – IRS
46,738
64,745
-
114,433
Hedged positions:
-
(165,453)
(367)
(581,688)
Hedged instruments value adjustment – active
relationships
-
(158,096)
(367)
(482,813)
deposits
-
(158,096)
-
(482,813)
loans
-
-
(367)
-
Difference in value to hedged position fair value –
terminated relationships
-
(7,357)
-
(98,875)
Closing balance
345,550
320,087
230,658
260,025
21. LOANS AND ADVANCES TO CUSTOMERS MEASURED
AT AMORTISED COST
31.12.2025
Loans and advances to customers
measured at amortised cost
Gross balance
sheet value
Allowance
Net balance
sheet value
Loans and advances for
Non-bank financial entities
6,122,520
(48,348)
6,074,172
overdraft
5,637,462
(13,007)
5,624,455
investment loans
183,203
(34,858)
148,345
other loans
301,855
(483)
301,372
Retail customers
34,428,276
(668,459)
33,759,817
mortgage loans
21,335,075
(225,837)
21,109,238
other loans
13,093,201
(442,622)
12,650,579
Corporate customers
48,104,604
(1,452,913)
46,651,691
overdraft
21,807,021
(696,606)
21,110,415
investment loans
19,656,273
(593,366)
19,062,907
other loans
6,641,310
(162,941)
6,478,369
including individual farmers
7,296,966
(249,325)
7,047,641
overdraft
4,712,173
(139,978)
4,572,195
investment loans
2,572,536
(108,173)
2,464,363
other loans
12,257
(1,174)
11,083
Public sector entities
218,025
(984)
217,041
overdraft
170,374
(861)
169,513
investment loans
30,750
(104)
30,646
other loans
16,901
(19)
16,882
Lease receivables
96,632
(12,952)
83,680
Total loans and advances to customers
measured at amortised cost
88,970,057
(2,183,656)
86,786,401
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
63
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-bank financial entities
6,484,263
(28,960)
6,455,303
overdraft
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
overdraft
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 individual farmers
7,769,080
(361,727)
7,407,353
overdraft
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 entities
67,960
(516)
67,444
overdraft
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 2025
The bank
for a changing world
64
Net loans and advances to customers by Stage
31.12.2025
Stage 1
Stage 2
Stage 3
POCI
Total
Gross loans and advances to customers
measured at amortised cost
79,114,490
7,462,059
2,277,438
116,070
88,970,057
Non-bank financial entities
5,909,974
209,454
2,582
510
6,122,520
Retail customers
31,963,611
1,787,990
645,479
31,196
34,428,276
Corporate customers
41,025,028
5,373,702
1,621,510
84,364
48,104,604
including individual farmers
6,398,264
626,899
256,424
15,379
7,296,966
Public sector entities
212,950
5,075
-
-
218,025
Lease receivables
2,927
85,838
7,867
-
96,632
Allowances for expected credit losses on
loans and advances for
(324,108)
(532,871)
(1,313,300)
(13,377)
(2,183,656)
Non-bank financial entities
(9,496)
(36,526)
(2,148)
(178)
(48,348)
Retail customers
(91,122)
(128,304)
(446,511)
(2,522)
(668,459)
Corporate customers
(222,708)
(358,169)
(861,359)
(10,677)
(1,452,913)
including individual farmers
(69,293)
(34,228)
(143,642)
(2,162)
(249,325)
Public sector entities
(776)
(208)
-
-
(984)
Lease receivables
(6)
(9,664)
(3,282)
-
(12,952)
Total net loans and advances to customers
measured at amortised cost
78,790,382
6,929,188
964,138
102,693
86,786,401
31.12.2024
Stage 1
Stage 2
Stage 3
POCI
Total
Gross loans and advances to customers
measured at amortised cost
72,748,214
8,106,657
2,550,778
115,900
83,521,549
Non-bank 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 individual 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
Allowances for expected credit losses on
loans and advances for
(339,533)
(520,612)
(1,445,674)
(26,472)
(2,332,291)
Non-bank 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 individual 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)
Total net loans and advances to customers
measured at amortised cost
72,408,681
7,586,045
1,105,104
89,428
81,189,258
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
65
31.12.2025
Stage 2
Stage 3
Total
Gross POCI loans and advances to customers
measured at amortised cost
30,352
85,718
116,070
Non-bank financial entities
3
507
510
Retail customers
20,911
10,285
31,196
Corporate customers
9,438
74,926
84,364
including individual farmers
3,428
11,951
15,379
Allowances for expected credit losses on
loans and advances for
(94)
(13,283)
(13,377)
Non-bank financial entities
-
(178)
(178)
Retail customers
(48)
(2,474)
(2,522)
Corporate customers
(46)
(10,631)
(10,677)
including individual farmers
-
(2,162)
(2,162)
Total net POCI loans and advances to customers
measured at amortised cost
30,258
72,435
102,693
31.12.2024
Stage 2
Stage 3
Total
Gross POCI loans and advances to customers
measured at amortised cost
31,942
83,958
115,900
Non-bank financial entities
4
205
209
Retail customers
23,907
10,966
34,873
Corporate customers
8,031
72,787
80,818
including individual farmers
1,261
13,855
15,116
Allowances for expected credit losses on
loans and advances for
(190)
(26,282)
(26,472)
Non-bank financial entities
-
(107)
(107)
Retail customers
(87)
(2,778)
(2,865)
Corporate customers
(103)
(23,397)
(23,500)
including individual farmers
-
(2,061)
(2,061)
Total net POCI loans and advances to customers
measured at amortised cost
31,752
57,676
89,428
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
66
Allowance for expected credit losses on loans and advances measured at amortised cost
Change in allowances for expected credit
losses
Stage 1
Stage 2
Stage 3
POCI
Total
As at 1 January 2025
(339,533)
(520,612)
(1,445,674)
(26,472)
(2,332,291)
Increase due to acquisition or origination
(164,854)
(15,329)
(37,640)
-
(217,823)
Decrease due to derecognition
62,786
42,303
141,122
1,715
247,926
Changes resulting from the change in credit risk
(net)*
116,857
(42,848)
(377,421)
3,587
(299,825)
Use of allowances
11
229
397,040
7,781
405,061
Other changes (including foreign exchange
differences)
625
3,386
9,273
12
13,296
As at 31 December 2025
(324,108)
(532,871)
(1,313,300)
(13,377)
(2,183,656)
Change in allowances for expected credit
losses
Stage 1
Stage 2
Stage 3
POCI
Total
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
As at 31 December 2024
(339,533)
(520,612)
(1,445,674)
(26,472)
(2,332,291)
*For details, see Note 3a Impairment of financial assets
The total gross balance of long-term loans and advances to customers as at 31 December 2025 amounted to PLN 73,586,082
thousand (PLN 70,556,302 thousand as at 31 December 2024).
Change in gross loans and advances to
customers measured at amortised cost
Stage 1
Stage 2
Stage 3
POCI
Total
As at 1 January 2025
72,748,214
8,106,657
2,550,778
115,900
83,521,549
Increase due to acquisition or origination
24,883,348
1,294,308
87,136
50,760
26,315,552
Decrease due to derecognition
(27,447,008)
(4,858,560)
(1,072,253)
(78,559)
(33,456,380)
Changes resulting from transfers between
stages
(2,673,063)
2,026,866
646,197
-
-
Other changes
11,602,999
892,788
65,580
27,969
12,589,336
As at 31 December 2025
79,114,490
7,462,059
2,277,438
116,070
88,970,057
Change in gross loans and advances to
customers measured at amortised cost
Stage 1
Stage 2
Stage 3
POCI
Total
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
As at 31 December 2024
72,748,214
8,106,657
2,550,778
115,900
83,521,549
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
67
Gross amount of foreign currency mortgage loans for retail customers (in PLN’000)
Loans by currency
31.12.2025
31.12.2024
CHF
254,276
406,207
EUR
18,334
20,928
PLN
21,062,351
19,779,708
USD
114
219
Total
21,335,075
20,207,062
31.12.2025
Value of loan portfolio including CHF
Gross balance
sheet value
including CHF
exposures
Allowance
including CHF
exposures
Loans and advances for
Non-bank financial entities
6,122,520
369
(48,348)
-
overdraft
5,637,462
369
(13,007)
-
investment loans
183,203
-
(34,858)
-
other loans
301,855
-
(483)
-
Retail customers
34,428,276
257,392
(668,459)
(101,869)
mortgage loans
21,335,075
254,276
(225,837)
(99,747)
other loans
13,093,201
3,116
(442,622)
(2,122)
Corporate customers
48,104,604
18,229
(1,452,913)
(8,353)
overdraft
21,807,021
11,771
(696,606)
(2,063)
investment loans
19,656,273
6,458
(593,366)
(6,290)
other loans
6,641,310
-
(162,941)
-
including individual farmers
7,296,966
44
(249,325)
(2)
overdraft
4,712,173
44
(139,978)
(2)
investment loans
2,572,536
-
(108,173)
-
other loans
12,257
-
(1,174)
-
Public sector entities
218,025
-
(984)
-
overdraft
170,374
-
(861)
-
investment loans
30,750
-
(104)
-
other loans
16,901
-
(19)
-
Lease receivables
96,632
4,696
(12,952)
(1,264)
Total loans and advances
88,970,057
280,686
(2,183,656)
(111,486)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
68
31.12.2024
Value of loan portfolio including CHF
Gross balance
sheet value
including CHF
exposures
Allowance
including CHF
exposures
Loans and advances for
Non-bank financial entities
6,484,263
-
(28,960)
-
overdraft
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)
overdraft
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 individual farmers
7,769,080
212
(361,727)
(20)
overdraft
5,028,136
212
(197,256)
(20)
investment loans
2,730,561
-
(163,321)
-
other loans
10,383
-
(1,150)
-
Public sector entities
67,960
-
(516)
-
overdraft
44,577
-
(453)
-
investment loans
23,165
-
(60)
-
other loans
218
-
(3)
-
Lease receivables
151,860
23,156
(26,971)
(14,329)
Total loans and advances
83,521,549
468,790
(2,332,291)
(150,827)
22. LOANS AND ADVANCES TO CUSTOMERS MEASURED
AT FAIR VALUE THROUGH PROFIT OR LOSS
31.12.2025
31.12.2024
Subsidised loans
286,183
452,506
Total loans and advances to customers measured at fair value through
profit or loss
286,183
452,506
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
31.12.2025
352,481
286,183
31.12.2024
527,495
452,506
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
69
Subsidised loans measured at fair value
Stage 1
Stage 2
Stage 3
Total
31.12.2025
225,234
51,044
9,905
286,183
31.12.2024
347,269
86,634
18,603
452,506
23. SECURITIES MEASURED AS AMORTISED COST
31.12.2025
Securities
Gross balance
sheet value
Allowance
Net balance
sheet value
issued by local banks
5,419,691
(66)
5,419,625
issued by other financial institutions
8,319,932
(23)
8,319,909
issued by governments – Treasury bonds
22,414,182
(84)
22,414,098
issued by non-financial entities – bonds
8,155
(4,217)
3,938
issued by local governments – municipal bonds
23,100
(44)
23,056
Total securities measured at amortised cost
36,185,060
(4,434)
36,180,626
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
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
70
31.12.2025
Stage 1
Stage 2
Stage 3
Total
Securities
36,180,905
-
4,155
36,185,060
issued by local banks
5,419,691
-
-
5,419,691
issued by other financial institutions
8,319,932
-
-
8,319,932
issued by governments – Treasury bonds
22,414,182
-
-
22,414,182
issued by non-financial entities – bonds
4,000
-
4,155
8,155
issued by local governments – municipal bonds
23,100
-
-
23,100
Impairment allowances on securities:
(279)
-
(4,155)
(4,434)
issued by local banks
(66)
-
-
(66)
issued by other financial institutions
(23)
-
-
(23)
issued by governments – Treasury bonds
(84)
-
-
(84)
issued by non-financial entities – bonds
(62)
-
(4,155)
(4,217)
issued by local governments – municipal bonds
(44)
-
-
(44)
Total net securities measured at amortised cost
36,180,626
-
-
36,180,626
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 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
Pursuant to Article 369 of the Act of 10 June 2026 on the Bank Guarantee Fund, the Deposit Guarantee System and Forced
Restructuring, there is no need to keep funds blocked in the Bank’s Securities Register account with NBP since 2025.
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.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
71
Change in debt instruments measured at amortised cost at carrying
value
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
32,364,550
26,246,278
Purchase of securities
7,473,698
11,316,130
Redemption of securities
(1,382,368)
(1,944,534)
Sale of securities
(2,329,555)
(3,080,657)
Change in impairment allowances
(101)
35
Change in interest due, foreign exchange differences, discounts and
premiums
54,402
(172,702)
Closing balance
36,180,626
32,364,550
Change in impairment allowances on debt instruments measured at
amortised cost
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
(4,334)
(4,368)
Increases due to creation and acquisition
(672)
(66)
Decreases due to derecognition
562
-
Changes due to changes in credit risk (net)
10
100
Closing balance
(4,434)
(4,334)
The gross amount of long-term securities measured at amortised cost as at 31 December 2025 was PLN 35,909,681 thousand
(PLN 30,651,053 thousand as at 31 December 2024).
24. SECURITIES MEASURED AT FAIR VALUE THROUGH
PROFIT OR LOSS
Securities measured at fair value through profit or loss
31.12.2025
31.12.2024
Bonds convertible for non-financial entities shares
68,767
80,284
Equity instruments
171,162
239,821
Certificates issued by non-financial entities
480
820
Total securities measured at fair value through profit or loss
240,409
320,925
Change in securities measured at fair value through profit or loss
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
320,925
290,887
Purchase of securities
62,000
2,258
Redemption of securities
(4,000)
(2,001)
Sale of securities
(72,655)
-
Change in measurement at fair value through profit or loss
(55,639)
26,740
Change in interest due, foreign exchange differences, discounts and
premiums
(10,222)
3,041
Closing balance
240,409
320,925
The gross amount of long-term securities measured at fair value through profit or loss as at 31 December 2025 was PLN 12,794
thousand (PLN 32,663 thousand as at 31 December 2024).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
72
The table below presents the amount of securities measured at fair value through profit or loss, divided into classified at fair value
through profit or loss and obligatorily measured at fair value through profit and loss.
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Classified as obligatorily measured at fair value through profit or loss at
initial recognition
69,247
81,103
Classified as measured at fair value through profit or loss at initial
recognition
171,162
239,822
Total securities measured at fair value through profit or loss
240,409
320,925
25. SECURITIES MEASURED AT FAIR VALUE THROUGH
OTHER COMPREHENSIVE INCOME
Securities
31.12.2025
31.12.2024
issued by Central Bank - NBP bills
2,198,779
4,997,605
issued by banks - bonds
2,811,136
2,629,766
issued by governments - treasury bonds
6,901,457
4,303,712
issued by other financial institutions - bonds
12,808,430
11,096,371
Securities measured at fair value through other comprehensive income
24,719,802
23,027,454
Change of securities measured at fair value through other
comprehensive income
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
23,027,454
16,634,303
Purchase of securities
174,251,926
243,028,982
Redemption of securities
(171,726,000)
(235,600,230)
Sale of securities
(582,599)
(1,121,481)
Change in measurement at fair value through other comprehensive income
347,318
43,787
Change in measurement at fair value through profit or loss
(64,865)
23,220
Change in interest due, foreign exchange differences, discounts and
premiums
(535,129)
32,367
Other changes
1,697
(13,494)
Closing balance
24,719,802
23,027,454
The gross amount of securities measured at fair value through other comprehensive income as at 31 December 2025 was PLN
22,068,533 thousand (PLN 16,077,861 thousand as at 31 December 2024).
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 ended 31 December 2025 and 31 December 2024.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
73
Profit/loss on securities measured at fair value through other
comprehensive income
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Profits included directly in equity and then transferred from equity to the
statement of profit or loss
222
11 183
Losses included directly in equity and then transferred from equity to the
statement of profit or loss
(917)
(592)
Total profit/loss on securities measured at fair value through other
comprehensive income
(695)
10,591
26. INVESTMENTS IN SUBSIDIARIES
31.12.2025
31.12.2024
Financial sector entities
76,728
76,728
Non-financial sector entities
31,698
31,698
Total investments in subsidiaries
108,426
108,426
Shares in subsidiaries as at 31 December 2025 and 31 December 2024
31.12.2025
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
The deletion of the company Campus Leszno Sp. z o.o. from the National Court Register (KRS) took effect on 2 July 2025, closing
the company’s liquidation.
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
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
74
27. INTANGIBLE ASSETS
Intangible assets
31.12.2025
31.12.2024
Licenses
680,689
702,505
Other intangible assets
104,669
96,381
Expenditure on intangible assets
179,866
179,277
Total intangible assets
965,224
978,163
Intangible assets
12 months ended 31.12.2025
Licenses
Other intangible
assets
Expenditure on
intangible assets
Total
Gross book value
As at 1 January 2025
2,185,601
157,874
180,773
2,524,248
Increases:
267,047
41,785
312,825
621,657
reclassification from expenditure
260,875
41,782
-
302,657
purchase
6,172
3
312,339
318,514
other
-
-
486
486
Decreases:
(179,158)
(3,079)
(312,236)
(494,473)
reclassification from expenditure
-
-
(302,657)
(302,657)
sale, liquidation, donation, shortage
(178,541)
(3,079)
-
(181,620)
other
(617)
-
(9,579)
(10,196)
As at 31 December 2025
2,273,490
196,580
181,362
2,651,432
Accumulated amortisation (-)
As at 1 January 2025
1,483,096
61,493
-
1,544,589
Changes:
109,705
30,418
-
140,123
amortisation for the financial year
284,222
33,453
-
317,675
sale, liquidation, donation, shortage
(169,848)
(3,035)
-
(172,883)
other
(4,669)
-
-
(4,669)
As at 31 December 2025
1,592,801
91,911
-
1,684,712
Impairment allowances (-)
As at 1 January 2025
-
-
1,496
1,496
Changes:
-
-
-
-
write-down update
-
-
-
-
As at 31 December 2025
-
-
1,496
1,496
Net book value
As at 1 January 2025
702,505
96,381
179,277
978,163
As at 31 December 2025
680,689
104,669
179,866
965,224
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
75
Intangible assets
12 months ended 31.12.2024
Licenses
Other intangible
assets
Expenditure on
intangible assets
Total
Gross book value
As at 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 at 31 December 2024
2,185,601
157,874
180,773
2,524,248
Accumulated amortisation (-)
As at 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 at 31 December 2024
1,483,096
61,493
-
1,544,589
Impairment allowances (-)
As at 1 January 2024
-
-
5,292
5,292
Changes:
-
-
(3,796)
(3,796)
write-down update
-
-
(3,796)
(3,796)
As at 31 December 2024
-
-
1,496
1,496
Net book value
As at 1 January 2024
661,807
68,334
209,941
940,082
As at 31 December 2024
702,505
96,381
179,277
978,163
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 2025, the Bank had significant contractual obligations incurred in connection with the acquisition of intangible
assets in the amount of PLN 12,855 thousand (PLN 17,506 thousand as at 31 December 2024).
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 2025
The bank
for a changing world
76
28. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment
31.12.2025
31.12.2024
Fixed assets, including:
404,958
377,613
land and buildings
65,245
71,366
IT equipment
171,035
139,648
office equipment
33,762
35,405
other, including leasehold improvements
134,916
131,194
Fixed assets under construction
38,268
28,006
Right of use, including:
504,209
541,177
land and buildings
475,257
508,655
motor vehicles
28,275
31,317
IT equipment
591
1,084
other, including leasehold improvements
86
121
Total property, plant and equipment
947,435
946,796
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
77
Changes in property, plant and equipment in 2025 and 2024 are presented below:
Property, plant and equipment and fixed assets under construction
12 months ended 31.12.2025
Land and
buildings
Property, plant
and equipment
Fixed assets
under
construction
Total
Gross book value
As at 1 January 2025
170,233
1,035,746
28,061
1,234,040
Increases:
814
162,360
74,557
237,731
reclassification from fixed assets under
construction
662
49,783
-
50,445
purchase
152
72,380
74,557
147,089
other
-
40,197
-
40,197
Decreases:
(8,060)
(151,339)
(64,347)
(223,746)
reclassification from fixed assets under
construction
-
-
(50,445)
(50,445)
sale, liquidation, donation, shortage
(8,060)
(123,180)
-
(131,240)
other
-
(28,159)
(13,902)
(42,061)
As at 31 December 2025
162,987
1,046,767
38,271
1,248,025
Accumulated depreciation (-)
As at 1 January 2025
92,814
728,518
-
821,332
Changes:
(1,015)
(21,807)
-
(22,822)
depreciation for the financial year
3,912
98,653
-
102,565
sale, liquidation, donation, shortage
(4,927)
(120,460)
-
(125,387)
As at 31 December 2025
91,799
706,711
-
798,510
Impairment allowances (-)
As at 1 January 2025
6,053
981
55
7,089
Changes:
(110)
(638)
(52)
(800)
write-down update
(110)
(638)
(52)
(800)
As at 31 December 2025
5,943
343
3
6,289
Net book value
As at 1 January 2025
71,366
306,247
28,006
405,619
As at 31 December 2025
65,245
339,713
38,268
443,226
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
78
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 at 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
(11,897)
(88,737)
-
(100,634)
other
-
(31,471)
(12,396)
(43,867)
As at 31 December 2024
170,233
1,035,746
28,061
1,234,040
Accumulated depreciation (-)
As at 1 January 2024
95,940
714,005
-
809,945
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)
other
-
-
-
-
As at 31 December 2024
92,814
728,518
-
821,332
Impairment allowances (-)
As at 1 January 2024
7,344
2,211
145
9,700
Changes:
(1,291)
(1,230)
(90)
(2,611)
write-down update
(1,291)
(1,230)
(90)
(2,611)
As at 31 December 2024
6,053
981
55
7,089
Net book value
As at 1 January 2024
77,992
306,107
19,004
403,103
As at 31 December 2024
71,366
306,247
28,006
405,619
Other increases present acquired and unused tangible fixed assets.
As at 31 December 2025, the Bank had significant contractual obligations incurred in connection with the acquisition of property,
plant and equipment in the amount of PLN 990 thousand (PLN 541 thousand as at 31 December 2024).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
79
Right of use
12 months ended 31.12.2025
Land and
buildings
Motor vehicles
IT equipment
Other, including
leasehold
improvements
Total
Gross book value
As at 1 January 2025
981,490
58,208
1,974
191
1,041,863
Increases:
109,232
12,025
-
3
121,260
Decreases:
(75,344)
(9,468)
-
(6)
(84,818)
As at 31 December 2025
1,015,378
60,765
1,974
188
1,078,305
Accumulated depreciation (-)
As at 1 January 2025
471,820
26,891
890
70
499,671
Changes:
67,902
5,599
493
32
74,026
depreciation for the financial year
95,833
12,292
493
32
108,650
other
(27,931)
(6,693)
-
-
(34,624)
As at 31 December 2025
539,722
32,490
1,383
102
573,697
Impairment allowances (-)
As at 1 January 2025
1,015
-
-
-
1,015
Changes:
(616)
-
-
-
(616)
recognition of impairment allowance
14
-
-
-
14
reversal of impairment allowance
(630)
-
-
-
(630)
As at 31 December 2025
399
-
-
-
399
Net book value
As at 1 January 2025
508,655
31,317
1,084
121
541,177
As at 31 December 2025
475,257
28,275
591
86
504,209
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
80
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
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
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
29. LEASES
Bank as a lessee
The Bank is a contractual party of lease agreements related to such underlying assets as:
● property,
● vehicles,
● land, including perpetual usufruct right to land,
● cash deposit machines,
● equipment,
● IT equipment.
The lease period of vehicles equals 1 to 5 years. Lease agreements contain extension options. In respect of vehicles, the Bank
also concludes leaseback agreements.
The Bank is also a party to real estate lease 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 lease period based on
the notice period. The agreements provide for variable lease fees depending on an index (e.g. GUS, 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 2025
The bank
for a changing world
81
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Costs of lease recognised in the statement of profit or loss
(130,870)
(134,589)
cost of interest from lease liabilities
(20,748)
(23,274)
cost of amortisation of assets due to the right of use
(108,650)
(110,844)
costs related to short-term leases (recognised as administrative costs)
(1,472)
(471)
Undiscounted lease payments by maturity
31.12.2025
31.12.2024
up to 1 year
120,111
137,045
from 1 year to 5 years
373,713
404,875
over 5 years
143,146
151,812
Total
636,970
693,732
31.12.2025
31.12.2024
Book value of liabilities due to discounted lease fees
553,267
606,204
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 lease investment. The income
recognition from finance lease agreements reflects the constant periodic rate of return on the net lease investment made by the
Bank under finance leases.
The Bank does not offer operational lease products, i.e. those in which substantially all the risks and rewards of ownership are not
transferred to the lessee.
Finance lease receivables
31.12.2025
31.12.2024
Gross receivables due to finance lease
96,681
163,274
Unrealised financial income
(49)
(11,414)
Present value of minimum lease payments
96,632
151,860
Impairment allowance
(12,952)
(26,971)
Total finance lease receivables
83,680
124,889
Gross finance lease receivables by maturity
31.12.2025
31.12.2024
up to 1 year
20,153
57,553
from year to 5 years
76,528
105,721
Total gross finance lease receivables
96,681
163,274
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
82
30. OTHER ASSETS
Other assets:
31.12.2025
31.12.2024
Receivables from contracts with customers:
sundry debtors
351,839
625,139
accrued income
72,661
95,542
payment card settlements
25,466
27,250
social insurance settlements
301
1,841
Other:
interbank and intersystem settlements
304,470
373,626
deferred expenses
96,864
100,080
tax and other regulatory receivables
30,916
14,178
other lease receivables
770
847
other
66,760
56,617
Total other assets (gross)
950,047
1,295,120
Impairment allowances on other receivables from sundry debtors
(39,390)
(66,953)
Total other assets (net)
910,657
1,228,167
including financial assets*
643,456
961,750
*Financial assets include all items of Other assets except: Accrued income, Deferred expenses, Tax and other regulatory receivables, Other.
31. AMOUNTS DUE TO BANKS
Amounts due to banks
31.12.2025
31.12.2024
Current accounts
508,339
619,766
Interbank deposits
36,257
-
Loans and advances received
4,013,273
4,063,385
Other liabilities
1,365,538
1,074,721
Total amounts due to banks
5,923,407
5,757,872
Also presented under Other liabilities are liabilities to customers from cash collateral in the gross amount of PLN 1,347,782
thousand (PLN 1,038,897 thousand as at 31 December 2024); there were no liabilities from securities sold under repo or sell buy
back agreements as at 31 December 2025 (PLN 23,722 thousand as at 31 December 2024).
In 2025 and 2024, there were no breaches of contractual provisions and covenants related to the Bank’s financial position and
disclosure obligations in financing agreements. As at 31 December 2025, there were no such covenants in the Bank’s financing
agreements.
The gross amount of long-term liabilities due to banks as at 31 December 2025 equals PLN 5,330,935 thousand (PLN 5,102,282
thousand as at 31 December 2024).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
83
32. AMOUNTS DUE TO CUSTOMERS
Amounts due to customers
31.12.2025
31.12.2024
Non-bank financial entities
6,727,607
5,463,926
Current accounts
2,930,055
2,592,161
Term deposits
3,331,989
2,412,093
Loans and advances received
450,612
449,955
Other liabilities
14,951
9,717
Retail customers
59,183,277
55,184,397
Current accounts
33,583,850
29,692,494
Term deposits
24,847,419
24,966,589
Other liabilities
752,008
525,314
Corporate customers
71,675,496
66,845,338
Current accounts
54,351,641
51,169,786
Term deposits
16,825,515
15,238,714
Other liabilities
498,340
436,838
including individual farmers
4,424,592
4,318,283
Current accounts
4,232,207
4,119,103
Term deposits
169,731
179,281
Other liabilities
22,654
19,899
Public sector institutions
3,768,687
3,336,467
Current accounts
3,444,256
2,881,865
Term deposits
321,246
452,788
Other liabilities
3,185
1,814
Total amounts due to customers
141,355,067
130,830,128
The gross amount of long-term amounts due to customers as at 31 December 2025 was PLN 226,209 thousand (PLN 712,297
thousand as at 31 December 2024).
33. LIABILITIES UNDER ISSUED DEBT SECURITIES
(INCLUDING SUBORDINATED ISSUES)
31.12.2025
31.12.2024
Debt securities
4,226,368
-
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
84
Change of liabilities under issued debt securities
(including subordinated issues)
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
-
-
Issue of debt securities
4,184,433
-
Change due to discount, interest, fees and commissions on debt securities
at effective interest rate, exchange differences
41,935
-
Closing balance
4,226,368
-
In 2025, the Bank issued bonds in the total amount of EUR 990,000 thousand (EUR 790,000 thousand are subordinated issues
and EUR 200,000 thousand are issues under MREL). Subordinated issued bond described in detail in Note 57 Major events in
BNP Paribas Bank Polska S.A. in 2025.
34. SUBORDINATED LIABILITIES
Subordinated liabilities
31.12.2025
31.12.2024
-
3,420,128
Change of subordinated liabilities
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
3,420,128
4,336,072
Loan repayments
(3,411,967)
(873,320)
Change in interest, commissions and fees at effective interest rate
(12,279)
(11,789)
Exchange differences
4,118
(30,835)
Closing balance
-
3,420,128
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
85
35. OTHER LIABILITIES
Other liabilities
31.12.2025
31.12.2024
Liabilities due to contracts with customers
Sundry creditors
257,095
567,525
Payment card settlements
205,228
210,545
Deferred income
80,686
80,316
Escrow account liabilities
-
544
Social security settlements
19,559
18,880
Other liabilities
Interbank and intersystem settlements
357,040
232,555
Provisions for non-personnel expenses
554,939
682,136
Provisions for other employee liabilities
278,908
262,083
Provision for unused holidays
37,143
39,437
Other regulatory liabilities
70,756
73,645
Other lease liabilities
2,301
3,607
Other
114,226
91,027
Total other liabilities
1,977,881
2,262,300
including financial liabilities*
841,223
1,033,656
*Financial liabilities include all items of Other liabilities except: Deferred income, Provisions for non-personnel expenses, Provisions for other
employee liabilities, Provision for unused holidays, Other regulatory liabilities, Other.
36. PROVISIONS
31.12.2025
31.12.2024
Provision for restructuring
20,897
41,825
Provision for retirement benefits and similar obligations
25,264
24,187
Expected credit losses on contingent liabilities
155,187
156,861
Provisions for litigation and claims
1,772,095
1,696,299
Other provisions
60,886
49,554
Total provisions
2,034,329
1,968,726
Change in restructuring provisions
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
41,825
64,050
Provisions recognition
-
142
Provisions utilisation
(20,928)
(22,367)
Closing balance
20,897
41,825
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
86
Change in provisions for retirement benefits and similar obligations
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
24,187
20,181
Provisions recognition
3,989
5,652
Provisions utilisation
(659)
(696)
Provisions release
(2,253)
(950)
Closing balance
25,264
24,187
Change in expected credit losses on contingent liabilities
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
156,861
141,931
Provisions recognition
140,000
65,468
Provisions release
(139,789)
(64,916)
Changes resulting from changes in credit risk (net)
(777)
13,305
Other changes
(1,108)
1,073
Closing balance
155,187
156,861
Change in provisions for litigation and similar liabilities
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
1,696,299
1,282,655
Provisions recognition
426,565
617,548
Provisions utilisation
(338,840)
(173,159)
Provisions release
(12,404)
(7,374)
Other changes, including foreign exchange differences
475
(23,371)
Closing balance
1,772,095
1,696,299
As at 31 December 2025, 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 1,684,489 thousand, provisions for reimbursement of commissions
for early repayment of loans in the amount of PLN 35,579 thousand, and provisions for other litigation and similar liabilities in the
amount of PLN 52,028 thousand.
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.
Change in other provisions
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
49,554
31,544
Provisions recognition
48,935
18,055
Provisions utilisation
(10,152)
(45)
Provisions release
(27,451)
-
Closing balance
60,886
49,554
As at 31 December 2025, the Other provisions item showed a provision for unauthorised transactions in the amount of PLN 55,794
thousand (PLN 8,000 thousand as at 31 December 2024).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
87
37. DEFERRED INCOME TAX
Changes in deferred income tax in the financial year:
Deferred tax assets
Deferred tax
base as at 31
December 2025
Deferred tax
base as at 31
December 2024
Charge arising
from changes in
the asset in 2025
Outstanding interest accrued on liabilities, including CD interest and
discount
1,208,784
980,389
126,983
Fair value measurement of derivative instruments and securities
1,686,642
2,261,856
7,341
Unrealised liabilities due to hedged items and hedging instruments
131,155
33,001
27,719
Allowances on expected credit losses on financial assets and
provisions for contingent liabilities (non-deductible), which are
probable to occur/documented
2,229,607
2,326,731
135,725
Revenue collected in advance and measured at amortised cost at
effective interest rate
37,356,00
-
9,681,00
Provision for retirement benefits and provision for restructuring
49,053
64,597
439
Other provisions for personnel costs
309,416
297,325
23,694
Provisions for non-personnel expenses
541,791
657,851
15,414
Impairment allowance on property, plant and equipment and
intangible assets
7,961
8,764
398
Impairment of investment in subsidiaries and associates
17,566
17,566
1,215
Compensations paid
45
5,947
(1,118)
Impairment allowance on lease receivables
9,670
9,456
709
Impairment allowance on available for sale assets related to leasing
operations
3,282
17,514
(2,477)
Surplus of the tax value of leased fixed assets over the book value
of receivables
49,305
54,508
2,421
Deferred income from leasing operations
120
11,485
(2,151)
Lease liabilities
554,481
608,120
28,151
Impairment allowances on other assets
41,364
52,021
836
Valuation of securities measured through other comprehensive
income
394,674
731,116
(45,611)
Provisions for legal risk related to foreign currency loans*
956,383
958,295
65,771
Other negative deductible temporary differences
35,783
24,155
4,682
Total:
8,264,438
9,120,697
399,822
*For details, see Note 54 Litigation, claims and administrative proceedings.
Base for assets recognised in profit or loss (in the current and
preceding years) and charge arising from changes in assets**
7,869,764
8,389,581
445,433
Base for assets recognised in correspondence with revaluation
reserve and charge arising from changes in assets
394,674
731,116
(45,611)
**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 20,015 thousand as at 31
December 2025 as compared to PLN 21,498 thousand as at 31 December 2024.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
88
Deferred tax liability
Deferred tax
basis as at 31
December 2025
Deferred tax
basis as at 31
December 2024
Charge arising
from changes in
the asset in 2025
Accrued revenue from interest on amounts due
(1,947,608)
(1,615,597)
(197,956)
Fair value measurement of derivative instruments and securities
(1,638,810)
(1,992,968)
(46,200)
Valuation of securities measured through other comprehensive
income
(148,826)
(59,806)
(23,819)
Revenue collected in advance and measured at amortised cost at
effective interest rate
(367,454)
(192,924)
(58,607)
Difference between accounting and tax depreciation of the Bank’s
own fixed assets
(465,741)
(446,966)
(35,820)
Net value of right of use (RoU)
(504,608)
(542,193)
(27,804)
R&D expenses
(116,860)
(109,864)
(9,422)
Subleasing agreements
(12,283)
(22,510)
1,093
Unrealised liabilities related to hedged items and hedging
instruments
(289,251)
(515,815)
23,016
Deferred costs of leasing operations
(1,445)
(10,147)
1,553
Other positive temporary differences
(4,882)
(3,306)
(526)
Total:
(5,497,768)
(5,512,096)
(374,492)
Base for the liability recognised in profit or loss (in the current and
preceding years) and charge arising from changes in liability
(5,344,060)
(5,448,984)
(350,147)
Base for the liability charged to revaluation reserve and charge
arising from changes in liability
(153,708)
(63,112)
(24,345)
As a result of changes to tax rates, deferred tax was measured in accordance with IAS12.47 at the tax rates expected to apply
when the asset is realised or the liability is released. As a result of the measurement, the tax expense in the statement of profit or
loss decreased by PLN 174 million and the tax expense in other comprehensive income by PLN 11 million.
31.12.2025
31.12.2024
Deferred tax assets
2,132,755
1,732,932
Deferred tax liability
(1,421,791)
(1,047,298)
Net deferred tax asset
710,964
685,634
38. DISCONTINUED OPERATIONS
The Bank did not discontinue any operations in 2025 or 2024.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
89
39. SHARE BASED PAYMENTS
The Bank has adopted the “Remuneration policy for persons with a significant 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 Regulation of the Minister of Finance, Funds and Regional Policy dated 8 June 2021 on the risk management
system, internal control system and remuneration policy in banks and recommendations included in CRD5.
Pursuant to the Remuneration policy for persons with a significant impact on the risk profile of BNP Paribas S.A. applied in the
Bank, starting in 2020 (excluding persons who have terminated their cooperation with the Bank), the applicable financial instrument
in which part of the variable remuneration is paid are ordinary shares (change from phantom shares).
The 2022 variable remuneration convertible into a financial instrument was granted in actual shares of the Bank.
On 9 December 2021, the Supervisory Board approved a modified Remuneration Policy for persons with a significant impact on
the risk profile of the Bank. The changes consisted mainly in adjusting the provisions of the Policy to 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 and the guidelines contained in CRD5 and consisted, among others, in extending the deferral period.
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 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 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 deferral period.
The Bank will grant subscription warrants to the participants of the Incentive Scheme, 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 will 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 adopted resolutions on the issue
of subscription warrants and a 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.
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. a part constituting at least 50% is granted in the form of the Bank’s shares (which will be acquired by exercising rights from
subscription warrants);
2. a 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 is
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 granted variable remuneration in excess of the maximum amount to be paid (MDA)
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.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
90
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 2025, for the variable remuneration granted for 2020-2024 and in connection with the forecast of the variable remuneration for
2025, which will be granted in 2026, in the part concerning shares to be issued in the future, the Bank recognised in capital an
amount of PLN 7,349 thousand. At the same time, an amount of PLN 32,443 thousand (recognised in the previous years) is
presented in capital.
Financial instruments (shares - deferred portion) changes in 2025 and 2024 determined in relation to the deferred part of the
variable remuneration for 2020-2024 are presented in the table below.
31.12.2025
31.12.2024
units
value (PLN’000)
units
value (PLN’000)
Opening balance
131,976
9,087
142,158
8,750
granted in the period
30,539
3,035
34,426
3,412
exercised in the period
(33,651)
(1,856)
(44,608)
(3,075)
Closing balance
128,864
10,267
131,976
9,087
The table below presents the terms and conditions of the Share/Warrants Purchase Plan for 2025.
Type of transaction under IFRS 2
Share-based payments
Program announcement date
31 January 2020 – effective date of the Resolution of the
Supervisory Board approving the Remuneration Policy.
The commencement date for granting of shares
12 March 2025
The end date for granting shares
8 April 2025
40. CONTINGENT LIABILITIES
The table below presents the value of liabilities granted and received.
Contingent liabilities
31.12.2025
31.12.2024
Contingent commitments granted
39,191,098
34,611,132
Financial commitments
26,388,870
22,111,126
Guarantees
12,802,228
12,500,006
Contingent commitments received
57,773,732
55,172,867
Financial commitments
31,000
551,870
Guarantees
57,742,732
54,620,997
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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91
The amount of long-term contingent liabilities granted as at 31 December 2025 was PLN 19,058,230 thousand (PLN 18,152,339
thousand as at 31 December 2024); the amount of contingent liabilities received as at 31 December 2025 was PLN 51,141,921
thousand (PLN 49,217,162 thousand as at 31 December 2024).
In connection with the amendments introduced by Regulation (EU) 2024/1623 of the European Parliament and of the Council of
31 May 2024 (CRR3) amending Regulation (EU) No 575/2013, the Bank recognised as at 31.12.2025 offering liabilities in the
amount of PLN 4,216,046 thousand.
41. COLLATERAL
The Bank had the following assets pledged as collateral for payment of its own and third-party liabilities.
Assets of the Bank pledged as collateral
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 collateral
31.12.2025
31.12.2024
Guaranteed amount protection fund – Bank Guarantee Fund (BFG)
type of collateral
-
Treasury bonds
nominal value of collateral
-
360,000
balance sheet value of collateral
-
348,772
maturity of collateral
-
21.07.2033
Collateral for derivative transaction settlement
type of collateral
call deposits
call deposits
nominal value of collateral
514,053
736,339
Securities sold under repurchase agreements (repo transactions)
balance sheet value of collateral
-
23,722
fair value of collateral
-
23,597
Collateral pledged over customer assets
The Bank did not establish any collateral on customer assets that may be sold or pledged
Following a change of requirements in 2025, it is no longer required to block securities in the NBP Securities Register.
For details, see Note 23 Securities measured at amortised cost.
42. 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 fair value 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.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 2025 and 2024, no changes were made to the rules for classification into valuation levels.
As at 31 December 2025, particular instruments were included in the following valuation levels:
1) Level 1: Treasury bonds and bonds issued by European Investment Bank (fair value is determined directly by reference to
published active market quotations), quoted shares;
2) Level 2: 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) Level 3: 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).
The table below presents classification of assets and liabilities measured at fair value in the separate financial statements into
three categories.
31.12.2025
Level 1
Level 2
Level 3
Total
Assets measured at fair value
24,720,559
2,559,806
671,039
27,951,404
Derivative financial instruments
-
2,190,900
168,560
2,359,460
Hedging instruments
-
345,550
-
345,550
Securities measured at fair value through other
comprehensive income
24,719,802
-
-
24,719,802
Securities measured at fair value through profit or loss
757
23,356
216,296
240,409
Loans and advances to customers measured at fair
value through profit or loss
-
-
286,183
286,183
Liabilities measured at fair value
-
2,628,496
133,619
2,762,115
Derivative financial instruments
-
2,142,956
133,619
2,276,575
Hedging instruments
-
485,540
-
485,540
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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
In 2025, no events of a change in fair value level from 1 to 2, 1 to 3, 2 to 1, and 3 to 1 were recorded (in 2024, no events of a
change in fair value level from 1 to 2, 1 to 3, 2 to 1, 2 to 3, and 3 to 1 were recorded).
In 2025, there were 153 events of derivatives for which the fair value level changed from 2 to 3.
In all cases, this was due to a shortening of the time to maturity of the transaction (in 2024, 188 cases due to a shortening of the
time to maturity of the transaction).
The table below shows the valuation of these transactions at the beginning and end of the reporting period:
12 months
ended 31.12.2025
Derivative financial
instruments - assets
Derivative financial
instruments - liabilities
Opening balance
120,026
114,857
Closing balance
263,820
266,847
12 months
ended 31.12.2024
Derivative financial
instruments - assets
Derivative financial
instruments - liabilities
Opening balance
437,535
357,502
Closing balance
492,288
412,763
In 2025, there were 7 events of derivatives for which the fair value level changed from 2 to 3. In one case, the change was due to
a Fair Value Correction for the transaction; in the other cases, the change was due to a significant BCVA.
In 2024, there were no derivatives for which the fair value level changed from 2 to 3.
The table below shows the valuation of these transactions at the beginning and end of the reporting period:
12 months
ended 31.12.2025
Derivative financial
instruments - assets
Derivative financial
instruments - liabilities
Opening balance
261,464
119
Closing balance
50,078
331
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.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 31.12.2025
Derivative financial
instruments -
assets
Financial assets
measured at fair
value
Derivative financial
instruments -
liabilities
Hedging
instruments -
liabilities
Opening balance
142,215
694,524
137,825
-
Total gains/losses recognised in:
26,345
(7,689)
(4,206)
-
statement of profit or loss
26,345
(7,689)
(4,206)
-
Purchase
-
28,000
-
-
Sale
-
(33,996)
-
-
Settlement/expiry
-
(178,360)
-
-
Closing balance
168,560
502,479
133,619
-
Unrealised gains/losses recognised
in profit or loss related to assets and
liabilities at the end of the period
26,345
(7,689)
(4,206)
-
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
-
-
Settlement/expiry
-
(215,171)
-
-
Closing balance
142,215
694,524
137,825
-
Unrealised 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)
The table below shows the effect of unobservable factors on the value of financial instruments classified to level 3.
31.12.2025
31.12.2024
Instrument type
fair value according to
fair value according to
positive scenario
negative scenario
positive scenario
negative scenario
Derivatives
1
36,357
34,710
5,347
10,588
Commercial bonds
2
63,038
61,401
66,323
65,658
Stocks and shares
3
154,907
140,154
169,605
153,452
Loans
4
287,102
285,264
457,479
447,578
1
scenario: rating change of +3/-3 notches
2
scenario: change in credit spread by -50bp/+50bp
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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3
scenario: change in valuation by +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
nonobservable parameters for all the categories.
The table below 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 fair value classification.
31.12.2025
Book value
Fair value
Level
Financial assets
Cash and balances at Central Bank
10,224,866
10,224,866
3
Amounts due from banks
11,524,131
10,898,263
3
Loans and advances to customers measured at
amortised cost
86,786,401
86,469,106
3
Securities measured at amortised cost
36,180,626
35,745,699
1,3
Other financial assets
643,456
643,456
3
Investments in subsidiaries
108,426
108,426
3
Financial liabilities
Amounts due to banks
5,923,407
6,129,596
3
Amounts due to customers
141,355,067
140,529,819
3
Lease liabilities
553,267
553,267
3
Other financial liabilities
841,223
841,223
3
Liabilities under issued debt securities
4,226,368
4,235,185
3
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 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 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
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 Crowdfunding for Business Ventures and Borrower Assistance
takes into account the impact of changes in repayment schedules resulting from the introduction of credit holidays.
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 valuation or 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 valuation).
4) Subordinated liabilities
The liabilities include subordinated loans. The fair value of a 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) Amounts 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.
7) Liabilities under issued debt securities
Fair value of liabilities under issued securities is determined using a model which discounts future cash flows from the
investment, based on market interest rate curves adjusted for issuer credit risk.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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Netting of financial assets and liabilities
31.12.2025
Gross value
presented in
financial
assets/liabilities
Net value
presented in
financial
assets/liabilities
Netting value
under concluded
contracts
Cash collateral
value
Net value
Financial assets
Trading and hedging derivatives
2,705,010
2,705,010
(1,101,112)
(1,346,764)
257,134
Total
2,705,010
2,705,010
(1,101,112)
(1,346,764)
257,134
Financial liabilities
Trading and hedging derivatives
2,762,115
2,762,115
(1,101,112)
(514,053)
1,146,951
Total
2,762,115
2,762,115
(1,101,112)
(514,053)
1,146,951
31.12.2024
Gross value
presented in
financial
assets/liabilities
Net value
presented in
financial
assets/liabilities
Netting 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
The possibility of netting 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 master agreements / ISDA agreements concluded with the counterparties.
43. LOAN PORTFOLIO SALE
In 2025 and 2024, the Bank concluded agreements for the sale of the retail, SME and corporate loan portfolio.
According to IFRS 9, the sale of a financial asset due to an increase in credit risk does not cause a change to the business model.
Consequently, the Bank maintains the loan portfolio in the business model with the objective of holding financial assets to obtain
contractual cash flows.
The gross carrying amount of the sold portfolio measured at amortised cost was PLN 273,916 thousand (PLN 430,520 thousand
in 2024), the amount of impairment allowances created was PLN 291,696 thousand (PLN 291,643 thousand in 2024).
The contractual price for the sale of these portfolios was set at PLN 82,392 thousand (PLN 198,143 thousand in 2024). The net
impact on the Bank’s result due to the sale of portfolios amounted to PLN 28,172 thousand (PLN 59,266 thousand in 2024) and is
presented in the line Net impairment allowances on financial assets and provisions for contingent liabilities.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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44. SECURITISATION
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 with a total value of PLN 2,180,097 thousand as at 31
December 2023. The main purpose of the transaction was to release capital that the Bank used 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 remainsed on the Bank’s books.
As at 31 December 2025, the value of the transaction portfolio included in the balance sheet and off-balance sheet amounted to
PLN 213,638 thousand.
The closing date of the transaction according to the agreement is 31 December 2031; however, the securitisation transaction was
closed on 10 January 2026 as the time-call option was exercised.
The risk transfer of the securitised portfolio was implemented through a credit protection instrument in the form of a financial
guarantee issued by the Investor up to PLN 19,317 thousand as at 31 December 2025. Costs on account of this guarantee are
presented in Fee and commission expenses - Guarantee commitments and documentary operations.
The transaction met the material risk transfer requirements of the CRR and has been structured as meeting the STS criteria
(simple, transparent and standard securitisation) under Regulation 2021/557.
The Bank acted as arranger of the transaction.
45. CUSTODY OPERATIONS
The Bank conducts custody operations consisting in maintaining assets or customer transactions settlement. These assets have
not been disclosed in the financial statements as they do not belong to the Bank.
As at 31 December 2025, the Custody Services Office held 115 securities accounts for the customers. The fair value of the financial
instruments of the customers of the Custody Services Office for this date was PLN 29,035,744 thousand.
In the reporting period, securities in public trading and securities in material form as well as financial instruments traded in foreign
markets were held in custody by the Bank. In providing custody services to customers, the Bank cooperated with several brokerage
houses and central securities depositories. The Bank acts as a depository for domestic investment funds.
46. SHAREHOLDERS OF BNP PARIBAS BANK POLSKA
S.A.
The table below shows the Bank’s shareholding structure as at 31 December 2025, including those holding at least 5% of the total
number of votes at the General Meeting:
Shareholder
Number of
shares
Percentage
share in the
share capital
Number of votes
at the General
Shareholders’
Meeting
Percentage
share in the
number of votes
at the General
Shareholders’
Meeting
BNP Paribas, in total:
110,910,367
75.00%
110,910,367
75.00%
BNP Paribas directly
75,420,141
51.00%
75,420,141
51.00%
BNP Paribas Fortis SA/NV directly
35,490,226
24.00%
35,490,226
24.00%
Other
36,970,124
25.00%
36,970,124
25.00%
Total
147,880,491
100.00%
147,880,491
100.00%
*Financial data have been rounded and therefore, in some cases, the totals may not correspond exactly to the total sum.
As at 31 December 2025, the Bank's share capital amounted to PLN 147,800,491.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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The share capital was divided into 147,800,491 shares with the par value of PLN 1.00 each, including: 15,088,100 series A shares,
7,807,300 series B shares, 247,329 series C shares, 3,220,932 series D shares, 10,640,643 series E shares, 6,132,460 series F
shares, 8,000,000 series G shares, 5,002,000 series H shares, 28,099,554 series I shares, 2,500,000 series J shares, 10,800,000
series K shares, 49,880,600 series L shares, 322,859 series M shares and 138,714 series N shares.
Four B series registered shares in the Bank are preferred 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 preferred 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 147,800,491 votes. The number of votes resulting from the series
M shares granted in 2025 is 20,223 votes and from the series N shares is 60,398 votes.
Changes in shareholder structure in 2025
On 7 April 2025, the Bank’s share capital was increased from PLN 147,799,870 to PLN 147,820,093 as a result of the acquisition
of 20,223 series M shares of the Bank in exercise of rights from previously acquired series A5 subscription warrants.
On 8 April 2025, the Bank’s share capital was increased from PLN 147,820,093 to PLN 147,880,491 as a result of the acquisition
of 60,398 series N shares of the Bank in exercise of rights from previously acquired series B2 subscription warrants.
On 16 December 2025, as a result of the settlement of block trades concluded on 12 December 2025 in connection with the
completion of the accelerated book building for 9,214,025 shares of the Bank, the share of BNP Paribas S.A. in the total number
of votes at the Bank’s general meeting decreased by approximately 6.23%.
BNP Paribas S.A. directly holds 75,420,141 shares in the Bank representing (as at 31 December 2025) approximately 51.00% of
the total number of shares and votes in the Bank, and together with other entities of the BNP Paribas S.A. Group controls a total
of 110,910,367 shares in the Bank representing (as at 31 December 2025) approximately 75.00% of the total number of shares
and votes in the Bank.
Intention of BNP Paribas regarding the liquidity of the Bank's shares
BNP Paribas S.A.’s intention to increase the number of the Bank's free float shares to at least 25% was fulfilled in December 2025
with the sale of 9,214,025 Bank shares by BNP Paribas S.A.
BNP Paribas Bank Polska S.A. shares held by members of the Management Board and members of the Supervisory Board
A summary of the Bank's shares and share entitlements held by the members of the Bank's Management Board and Supervisory
Board as at the date of the report for 2025 (5 March 2026) and the Financial Statements for the third quarter of 2025 (6 November
2025) is presented below.
MEMBER OF THE BANK’S
MANAGEMENT BOARD
SHARES
SUBSCRIPTION
WARRANTS
1
SALE/PURCHA
SE OF
SHARES
SHARES
SUBSCRIPTION
WARRANTS
1
6.11.2025
6.11.2025
5.03.2026
5.03.2026
Przemysław Gdański
47,646²
8,203
-14,146
33,500²
8,203
André Boulanger³
-
5,163
-
-
5,163
Małgorzata Dąbrowska
-
1,208
-
-
1,208
Wojciech Kembłowski
-
3,590
-
-
3,590
Piotr Konieczny
455
1,571
-
455
1,571
Magdalena Nowicka
2,392
2,632
-
2,392
2,632
Volodymyr Radin
1,364
2,333
-
1,364
2,333
Agnieszka Wolska⁴
6,538
2,905
-
6,538
2,905
Natalie Yacoubian⁵
-
-
-
-
-
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
The bank
for a changing world
100
MEMBER OF THE BANK’S
SUPERVISORY BOARD
SHARES
SUBSCRIPTION
WARRANTS
1
SALE/PURCHA
SE OF
SHARES
SHARES
SUBSCRIPTION
WARRANTS
1
6.11.2025
6.11.2025
5.03.2026
5.03.2026
Jean-Charles Aranda
-
770
-
-
770
1) subscription warrants taken up on 24.03.2025: series A6 - one series A6 warrant entitles to take up one series M ordinary bearer share of
BNP Paribas Bank Polska S.A., at the issue price of PLN 1.00 per share and B3 series - one series B3 warrant entitles to take up one series
N ordinary bearer share of BNP Paribas Bank Polska S.A., at the issue price of PLN 1.00 per share
2) registered pledge was established on 18,000 shares of the Bank held by Przemysław Gdański, at a price of PLN 111.50 per share
3) André Boulanger resigned as a member of the Bank’s Management Board as of 31 December 2025; the shareholding balance as at 31
December 2025 is presented at the date of the 2025 Report (5 March 2026)
4) Agnieszka Wolska resigned as a member of the Bank’s Management Board as of 2 January 2026; the share and subscription warrant holding
balance as at 2 January 2026 is presented at the date of the 2025 Report (5 March 2026)
5) Natalie Yacoubian has been a member of the Bank’s Management Board as of 1 January 2026
The other members of the Supervisory Board did not declare their shareholding/entitlements in the Bank as at 5 March 2026, which
has not changed since the submission of the Q3 2025 Financial Statements (6 November 2025).
47. SUPPLEMENTARY CAPITAL AND OTHER CAPITALS
The tables below present changes in supplementary capital and other reserve capitals:
Supplementary capital
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
9,110,976
9,110,976
Changes
-
-
Closing balance
9,110,976
9,110,976
Other reserve capitals
31 December 2025
31 December 2024
General banking risk fund
627,154
627,154
Other reserve capital
4,021,780
3,397,051
Total
4,648,934
4,024,205
Revaluation capital
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
(541,084)
(566,964)
Gain/loss on changes in fair value of financial assets measured through
other comprehensive income
347,318
43,787
Gain/loss on change in fair value of cash flow hedging derivatives
78,145
(10,138)
Actuarial valuation of employee benefits
1,576
(1,698)
Deferred income tax
(69,956)
(6,071)
Closing balance
(184,001)
(541,084)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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101
Other reserve capital
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
3,397,051
2,886,824
Distribution of retained earnings
658,457
503,830
Management stock options
7,349
6,397
Interest paid on AT1 capital bonds
(41,077)
-
Closing balance
4,021,780
3,397,051
AT1 capital bonds
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
650,000
-
Value of AT1 capital bonds issues
-
650,000
Closing balance
650,000
650,000
The Bank issued 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
AT1 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
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
(400,786)
(400,786)
Transfer from current period profits
500,000
-
Interest paid on AT1 capital bonds
(14,568)
-
Closing balance
84,646
(400,786)
Change in revaluation reserve on financial
assets measured through other
comprehensive income
2025
2024
Gross value
Deferred tax
Gross value
Deferred tax
Opening balance
(671,310)
127,549
(704,959)
133,942
gains/losses on financial assets measured at
fair value through other comprehensive income
recognised in equity
426,158
(80,970)
23,058
(4,381)
reclassification to profit or loss due to sale of
financial assets measured at fair value through
other comprehensive income
(695)
132
10,591
(2,012)
Closing balance
(245,847)
46,711
(671,310)
127,549
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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for a changing world
102
48. DIVIDENDS PAID
The Bank’s General Meeting on 15 April 2025 adopted a resolution on the payment of dividends from the net profit made in 2024.
On the basis of this resolution, the Bank paid a dividend of PLN 1,162,340,659.26, i.e. PLN 7.86 per share, on 9 May 2025. The
dividend covers all shares issued by the Bank, i.e. 147,880,491 shares.
It is the Bank’s intention, in accordance with the dividend policy adopted by the Supervisory Board on 10 December 2025, to make
stable dividend payments to shareholders in the long term while maintaining the principle of prudent management of the Bank and
the Bank’s 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 2026 at approximately 50% of the Bank’s separate profit for 2025. 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.
49. DISTRIBUTION OF RETAINED EARNINGS
In accordance with Resolution No. 7 of the General Meeting of Shareholders of BNP Paribas Bank Polska S.A. dated 15 April 2025
on distribution of the profit of BNP Paribas Bank Polska S.A. and payment of a dividend for the financial year 2024 from the net
profit generated in 2024 in the amount of PLN 2,320,797,922.26 (two billion three hundred twenty million seven hundred ninety-
seven thousand nine hundred and twenty-two zlotys and twenty-six groszy) the Bank paid dividend in the amount of PLN
1,162,340,659.26, allocated the amount of PLN 658,457,263.00 to the reserve capital and retained the remaining amount as
retained earnings.
50. 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
31.12.2025
31.12.2024
Cash and balances at Central Bank (Note 17)
10,224,866
11,325,551
Current accounts of banks and other receivables
11,004,435
6,824,291
Interbank deposits
-
60,009
Total cash and cash equivalents
21,229,301
18,209,851
51. ADDITIONAL INFORMATION REGARDING THE
STATEMENT OF CASH FLOWS
Changes in amounts due from banks
(including amounts due from Central Bank and cash)
31.12.2025
31.12.2024
Change arising from the balance sheet
(2,634,149)
5,659,432
Elimination of a change in cash and cash equivalents
3,019,450
2,408,579
Change in balance arising from interest
(2,248)
(2,957)
Total change in amounts due from banks
383,053
8,065,054
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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103
Change in amounts due from customers measured at amortised cost
31.12.2025
31.12.2024
Change arising from the balance sheet
(5,597,143)
(52,033)
Change in balance arising from interest
(81,631)
(65,096)
Total change in amounts due from customers measured at amortised
cost
(5,678,774)
(117,129)
Change in amounts due to banks
(including the Central Bank)
31.12.2025
31.12.2024
Change arising from the balance sheet
3,776,566
(260,311)
Repayment of long-term loans received
(3,608,193)
(1,148,623)
Long-term loans from banks
-
1,295,674
Total change in amounts due to banks
168,373
(113,260)
Change in amounts due to customers
31.12.2025
31.12.2024
Change arising from the balance sheet
10,524,939
3,696,063
Change in balance arising from interest
59,293
84,982
Total change in amounts due to customers
10,584,232
3,781,045
Cash flows from operating activities – other adjustments
12 months
ended 31.12.2025
12 months
ended 31.12.2024
FX differences from subordinated loans
4,118
(30,835)
Valuation of securities recognised in the statement of profit or loss
120,504
(49,960)
Allowance for securities
101
(35)
Other adjustments
15,380
20,887
Total cash flows from operating activities – other adjustments
140,103
(59,943)
52. 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 entity of the BNP Paribas Bank Polska S.A. Capital Group.
The ultimate parent company is BNP Paribas S.A., Paris.
As at 31 December 2025, 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 in 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 2025
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104
Transactions with shareholders of BNP Paribas Bank Polska S.A. and related parties
31.12.2025
BNP
Paribas
S.A., Paris
BNP
Paribas
Fortis S.A.
Other entities of
the
BNP Paribas S.A
Group
Key
personnel
Subsidiaries
Total
Assets
13,421,778
-
604,275
1,204
2,638,444
16,665,701
Receivables on current accounts, loans
and deposits
11,435,318
-
600,999
1,163
2,635,261
14,672,741
Derivative financial instruments
1,640,910
-
-
-
-
1,640,910
Derivative hedging instruments
345,550
-
-
-
-
345,550
Other assets
-
-
3,276
41
3,183
6,500
Liabilities
10,351,327
35,769
823,774
2,934
114,355
11,328,159
Current accounts and deposits
5,099,198
35,769
795,190
2,934
114,163
6,047,254
Liability under issued debt securities
(including subordinated issues)
4,226,368
-
-
-
-
4,226,368
Derivative financial instruments
540,221
-
3,048
-
-
543,269
Derivative hedging instruments
485,540
-
-
-
-
485,540
Other liabilities
-
-
25,536
-
192
25,728
Contingent liabilities
Financial commitments granted
-
-
260,628
4,631
-
265,259
Guarantees granted
478,432
77,244
535,329
-
1,775,214
2,866,219
Commitments received
7,883,148
109,827
749,058
-
1,923,389
10,665,422
Derivative financial instruments
(nominal value)
59,595,048
-
26,627
-
-
59,621,675
Derivative hedging instruments
(nominal value)
35,043,905
-
-
-
-
35,043,905
Statement of profit or loss
735,468
(791)
58,335
46
248,855
1,041,913
12 months ended 31.12.2025
Interest income
986,889
244
12,825
117
177,251
1,177,326
Interest expense
(1,390,267)
(1,035)
(9,716)
(71)
-
(1,401,089)
Fee and commission income
-
-
-
-
14,303
14,303
Fee and commission expense
-
-
-
-
(1,519)
(1,519)
Net trading income
1,198,685
-
9
-
-
1,198,694
Other operating income
-
-
97,323
-
59,125
156,448
Other operating expense
-
-
(25,767)
-
(120)
(25,887)
General administrative costs
(59,839)
-
(16,339)
-
(185)
(76,363)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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105
31.12.2024
BNP
Paribas
S.A., Paris
BNP
Paribas
Fortis S.A.
Other entities of
the
BNP Paribas S.A
Group
Key
personnel
Subsidiaries
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
94,621
(1,125)
60,598
45
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)
Remuneration of the Management Board and Supervisory Board
Remuneration of the Management Board
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Short-term employee benefits
15,946
15,523
Long-term benefits
5,487
4,434
Share-based payments*
5,382
5,744
Shares issued**
2,096
1,855
Total
28,911
27,556
* includes 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
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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Remuneration of the Supervisory Board
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Short-term employee benefits
1,971
1,832
Total
1,971
1,832
53. 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, the Bank presents the results of:
● Agro customers, i.e. individual farmers and agro-food sector enterprises,
● Personal Finance customers.
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 by segment in line with the business model
adopted by the Bank, which are based on entity and financial criteria (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. income, expenses and net impairment losses are reported for each segment. Management
income takes into account cash flows between customer segments and the asset and 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 takes 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 due to 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 income, in addition to standard items,
components of the net interest income of the segments have been identified, to include external and internal income 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 customers (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.
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 are carried out through financial intermediaries both nationwide and locally.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 customers, financial institutions and public sector entities. Distribution network for
Corporate Banking is based on Regional Corporate Banking Centres located in Warsaw, Gdańsk, Poznań, Wrocław, Katowice,
Kraków and Rzeszów. After-sales service for the customers of the Corporate Banking segment is also carried out by the Telephone
Business Service Centre 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 in 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 customers.
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 Bank’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 balance sheet).
The Other Banking 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 (including 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 2025
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31.12.2025
Retail and
Business
Banking
SME Banking
Corporate
Banking
CIB
Other
Banking
Operations
Total
including
Agro
customers
including
Personal
Finance
Statement of profit or loss for the period of 12 months ended
31.12.2025*
Net interest income
3,166,891
567,722
1,421,720
100,625
523,461
5,780,421
681,495
655,749
external interest income
3,357,908
418,838
1,725,113
371,292
3,710,017
9,583,167
1,005,629
1,248,984
external interest expenses
(1,361,035)
(242,134)
(573,944)
(10,645)
(1,614,988)
(3,802,746)
(102,229)
-
internal interest income
3,519,352
704,347
1,605,474
15,580
(5,844,753)
-
491,605
-
internal interest expenses
(2,349,333)
(313,329)
(1,334,922)
(275,602)
4,273,186
-
(713,510)
(593,235)
Net fee and commission income
621,795
123,336
392,444
50,614
(6,676)
1,181,514
119,903
121,561
Dividend income
8,346
-
2,594
-
7,177
18,118
1,439
-
Net trading income (including the result from FX position)
112,594
86,605
394,661
304,149
178,950
1,076,959
68,722
-
Result on investment activities
-
-
(1)
-
(2,339)
(2,340)
-
-
Result on hedge accounting
-
-
-
-
(11,161)
(11,161)
-
-
Other operating income and expenses
(57,444)
3,099
(6,880)
1,345
15,708
(44,171)
(1,789)
(14,265)
Result on derecognition of financial assets measured at amortised
cost due to material modification
(6,584)
(2,939)
2,994
-
(13,168)
(19,698)
1,033
(7,829)
Result on allowance for expected credit losses on financial assets
and provisions for contingent liabilities
5,251
59,637
(157,104)
(46,438)
(16,696)
(155,350)
60,201
(54,556)
Result on legal risk related to foreign currency loans
(498,751)
-
-
-
-
(498,751)
-
-
General administrative expenses
(1,113,951)
(92,270)
(388,508)
(113,301)
(1,004,014)
(2,712,043)
(18,647)
(293,189)
Depreciation and amortisation
(118,791)
(1,448)
(77,640)
(19,958)
(311,053)
(528,890)
(243)
(18,217)
Expense allocation (internal)
(879,473)
(234,928)
(185,929)
4,455
1,295,875
-
-
(105,507)
Operating result
1,239,883
508,814
1,398,351
281,491
656,064
4,084,608
912,114
283,747
Tax on financial institutions
(210,851)
(31,753)
(123,056)
(22,928)
(4,763)
(393,352)
-
(49,603)
Gross profit
1,029,032
477,061
1,275,295
258,563
651,301
3,691,256
912,114
234,144
Income tax expense
-
-
-
-
-
(679,061)
-
-
Net profit
-
-
-
-
-
3,012,195
-
-
Statement of financial position as at 31.12.2025*
Segment assets
42,244,160
5,811,262
31,843,707
7,837,808
88,573,197
176,310,134
13,765,965
12,866,746
Segment liabilities
79,959,474
17,076,699
45,534,508
-
16,268,822
158,839,504
12,288,596
-
*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 2025
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31.12.2024
Retail and
Business
Banking
SME Banking
Corporate
Banking
CIB
Other
Banking
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
606,354
128,295
388,784
72,718
(7,858)
1,188,293
135,608
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
69,121
865,207
71,136
-
Result on investment activities
-
-
-
-
14,374
14,374
-
-
Result on hedge accounting
-
-
-
-
1,946
1,946
-
-
Other operating income and expenses
(92,715)
(3,595)
(13,273)
(13)
(7,764)
(117,358)
(3,325)
(29,263)
Result on derecognition of financial assets measured at amortised
cost due to material modification
(3,192)
(8,385)
8
-
(24,170)
(35,739)
(5,847)
(4,555)
Result on allowance for expected credit losses on financial assets
and provisions for contingent liabilities
2,522
11,173
(199,704)
(39,453)
112
(225,350)
30,135
(54,675)
Result on 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 amortisation
(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
1,427,003
234,162
294,368
3,308,610
946,332
319,381
Tax on financial institutions
(184,739)
(26,218)
(125,339)
(26,714)
(41,962)
(404,971)
-
(53,498)
Gross profit
689,796
452,320
1,301,664
207,448
252,406
2,903,639
946,332
265,883
Income tax expense
-
-
-
-
-
(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
-
*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 2025
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54. LITIGATION, CLAIMS AND ADMINISTRATIVE
PROCEEDINGS
Legal risk
As at 31 December 2025, 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.
UOKIK proceedings
Court decision on the UOKiK decision regarding calculation of the interchange fee
On 6 October 2015, the Court of Appeal 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 means 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 Raiffeisen Bank Polska S.A. (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
reexamination. In November 2022, the first hearing was held. The case is pending.
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.
The Bank is talking to the UOKiK to agree the final decision, the proceedings are expected to be closed in April 2026.
The case is pending, the Bank is working with the UOKiK to finalise it. The UOKiK announced an extension of the proceedings
until 11 April 2026.
Details of the cost of provisions against unauthorised transactions of customers are described in Note 14 Other operating
expenses.
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 payment suspension 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 sent its reply to UOKiK, in which it pointed out that the Bank accepted and processed
all individual applications submitted 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 recognised the questioned practice as violating the collective interests of consumers;
● the practice was found to be abandoned;
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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● 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 appealed against 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 created a provision in the amount of the penalty imposed.
On 24 March 2025, the Court announced its decision which dismissed the Bank’s appeal. The Bank appealed against the Court’s
decision on 9 May 2025.
PFSA proceedings
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 control of the factual and legal acts carried out by investment funds
PSF Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych and PSF 2 Fundusz Inwestycyjny Zamknięty Aktywów
Niepublicznych 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 the justification
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) failure 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 created a provision for the imposed penalty.
The Polish Financial Supervision Authority informed the Bank that the proceedings to determine the aforementioned application
are scheduled to be completed in March 2026.
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 of Fundusz Inwestycyjny Zamknięty Aktywów
Niepublicznych, 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 created a provision for the imposed penalty.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 2026.
Administrative proceedings of the Polish Financial Supervision Authority for the imposition of a penalty in connection
with a breach of the Act on Trading in Financial Instruments
On 24 January 2025, the Polish Financial Supervision Authority opened administrative proceedings against BNP Paribas Bank
Polska S.A. for the imposition of a penalty under Article 138(3)(3a) or Article 138(7aa)(1) of the Banking Law in connection with a
breach of the Act on Trading in Financial Instruments.
The proceedings are pending.
Legal risks of the portfolio of foreign currency and CHF denominated loans
Court proceedings instigated by the Bank’s customers being parties to foreign currency and CHF denominated loan
agreements
The gross balance sheet value of residential mortgage loans granted to retail customers in CHF as at 31 December 2025 amounted
to PLN 254,276 thousand, compared with PLN 406,207 thousand as at 31 December 2024.
As at 31 December 2025, the number of active foreign currency and CHF denominated loans amounted to 5.3 thousand.
As at 31 December 2025, the Bank was a defendant in 5,865 (1,456 new cases in 2025) pending court proceedings (including
legally finalised cases, customers brought a total of 11,047 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 2025 amounted to PLN 3,126,776
thousand (PLN 3,495,835 thousand as at 31 December 2024), and in the legally concluded cases to PLN 2,107,350 thousand
(PLN 1,141,019 thousand as at 31 December 2024).
By 31 December 2025, in 5,182 finalised proceedings, there were 1,403 judgments in favour of the Bank, including 908 in
connection with court settlements and 453 cases in connection with the proceedings being stayed. In 3,779 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.
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 as at 31 December 2025 was PLN 2,823,983 thousand (PLN 3,238,760 thousand
as at 31 December 2024), with an impact of PLN 498,751 thousand on the Bank’s statement of profit or loss in 2025 (PLN 795,728
thousand in 2024).
Changes in the total impact of legal risks related to litigation in 2025 are presented in the table below (in PLN thousand):
Total impact of legal risk
12 months
ended 31.12.2025
12 months
ended 31.12.2024
Opening balance
3,238,760
3,404,016
Increase in the profit and loss account
498,751
795,728
Utilisation
(911,894)
(861,738)
Exchange rate differences
(1,634)
(99,246)
Closing balance
2,823,983
3,238,760
In 2025, the Bank used PLN 289,634 thousand from the estimated impact of legal risk of CHF loans in connection with settlements
reached (in 2024, the Bank used PLN 422,952 thousand on this account).
In 2025, the Bank used PLN 622,260 thousand from the estimated impact of legal risk of CHF loans in connection with final
judgments received declaring loan agreements invalid (in 2024, the Bank used PLN 438,786 thousand on this account).
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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The total impact of legal risk related to litigation is presented in the tables below (in PLN thousand):
31.12.2025
Gross balance
sheet value
(before
adjustment for
legal risk)
Impact of legal
risks
Gross balance
sheet value (after
legal risk)
Real estate loans for individuals in CHF
1,393,771
1,139,495
254,276
Impact of legal risk recognised as provisions for litigation
-
1,684,488
-
Total impact of legal risk
2,823,983
31.12.2024
Gross balance
sheet value
(before
adjustment for
legal risk)
Impact of legal
risks
Gross balance
sheet value (after
legal risk)
Real estate loans for individuals in CHF
2,080,799
1,674,592
406,207
Impact of legal risk recognised as provisions for litigation
-
1,564,168
-
Total impact of legal risk
3,238,760
In estimating the impact of legal risk, the Bank takes into account, among others, 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 unfavourable 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 145,884 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 principal 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.
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 a 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 79,630 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 62,839 thousand
-5 p.p.
-PLN 80,414 thousand
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 26,734 thousand
-20%
-PLN 26,734 thousand
Additionally, according to the Bank’s assessment, if an additional 1% of customers with CHF loans filed a lawsuit against the Bank,
the loss due to legal risk would increase by approx. PLN 24,246 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 Regulation of the Minister of Finance of 11 March
2022, as amended by the Regulation of 20 December 2022, in force until the end of 2024, on the abandonment of the collection
of income tax on certain income (net income) related to a residential mortgage loan.
As at 31 December 2024, the Bank held assets of PLN 38,165 thousand, which were realised in full in 2025. In 2025, the Bank
additionally realised assets at PLN 1,863 thousand, set up during 2025 on the basis of additional legal risk provisions. Based on
an new estimate of the impact of the legal risk associated with foreign currency loans as at 31 December 2025, the Bank leaves
PLN 32,161 thousand in assets with an expected realisation by the end of 2026; at a rate of 19%, the asset would be PLN 23,599
thousand.
In addition, 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, and
● the analysis of their impact on the deferred tax estimate,
the Bank recognised a deferred tax asset.
As at 31 December 2024, the deferred tax asset was PLN 143,911 thousand. As at 31 December 2025, the deferred tax asset in
view of expected cancellations was PLN 215,482 thousand; at a rate of 19%, the asset would be PLN 158,114 thousand.
Case law of the Court of Justice (EU) in 2025
On 19 June 2025, the CJEU passed a judgment in case C-396/24 (Lubreczlik) concerning mBank S.A. According to the CJEU,
Directive 93/13 should be interpreted as precluding national case-law according to which:
1) where a term of a loan agreement classified as unfair renders that agreement invalid, the seller or supplier is entitled to require
the consumer to repay the full nominal amount of the loan, irrespective of the value of repayments made by the consumer in
performance of that agreement and irrespective of the amount remaining due;
2) in the event of the consumer’s acceptance of a claim, brought by a seller or supplier, for repayment of the sums paid under a
loan agreement declared invalid based on the presence of an unfair term in that agreement, the court is required to declare
of its own motion the judgment granting that claim immediately enforceable, in so far as national law does not allow that court
to adopt all the measures necessary to protect the consumer from the particularly unfavourable consequences which that
declaration could have with regard to that consumer.
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On 27 November 2025, the CJEU passed a judgment in case C-746/24 (Gryczara) concerning Bank Millenium S.A. According to
the judgment, Directive 93/13 should be interpreted as precluding national legislation which allows a consumer, as the defendant
who has been unsuccessful in an action brought by a seller or supplier for repayment of the loan capital following the annulment
of a loan agreement on account of the unfairness of terms contained therein, to be ordered to pay the costs including court costs
which, as a result of the distinction made by that legislation in the calculation of the amount of those costs according to whether
the applicant is a consumer, significantly exceed those which that consumer would have had to bear if he or she had been
unsuccessful in an action brought by him or her seeking a declaration that those terms are unfair and, as the case may be, a
declaration of the invalidity of those terms and of the loan agreement.
On 11 December 2025, the CJEU passed a judgment in case C-767/24 (Kuszycka) concerning mBank S.A. According to the
CJEU, Directive 93/13 must be interpreted as meaning that, in the context of the annulment in its entirety of a mortgage loan
agreement concluded between a consumer and a banking institution, on the ground that that agreement contains an unfair term
without which that agreement cannot continue in existence, it precludes the application of national case-law according to which
the submission by that consumer of a declaration of set-off of his or her claim against that of that banking institution entails an
implied waiver of the objection that the claim relied on by that institution is time-barred.
Supreme Court case law on CHF denominated and foreign currency loans
On 25 April 2024, the full formation of the Civil Chamber of the Supreme Court adopted the so-called ‘large resolution on Swiss
franc loans issue’, resolving the key legal issues, ref. 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 unfair 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 unfair 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 undue benefits arise in favour of each party.
4) If a loan agreement is not binding because of the unfair 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 challenged the terms of the agreement as binding.
5) If a loan agreement is not binding because of the unfair 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 undue benefit was provided
and the time when repayment of that benefit is delayed.
The resolution refers only to the effects of declaring conversion clauses in indexed or denominated loan agreements as unfair
(without prejudging whether such clauses are unfair). 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.
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, as the Supreme Court noted in the justification to the resolution, this kind of loan is not subject to questions referred by
the First President of the Supreme Court.
The Supreme Court noted that in the case of foreign currency loans in which there is no problem of unfair terms 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 such unfair terms, 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 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).
This position of the full formation of the Chamber of the Supreme Court was reflected in a separate opinion of Supreme Court
Judge Dariusz Pawłyszcze regarding the judgment of the Supreme Court of 25 June 2024, ref. II CSKP 1765/22 (concerning the
Bank). In the justification of the separate opinion, the Judge pointed to the different structure of the Bank’s loan agreements and
argued that Resolution III CZP 25/22 did not apply to foreign currency loans as, under such agreements, the option of repayment
in PLN (at the bank’s exchange rates) is merely the borrower’s right.
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.
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The case-law of common courts includes decisions pointing to the different nature of foreign currency loans and the impact of such
classification on the validity of agreements. This position was taken by the Appeal Court in Warsaw in its legally valid judgment,
favourable to the Bank, of 5 June 2025, ref. VIII ACa 2851/25. The Court stressed the foreign currency aspect of the loan agreement
between the Bank and the consumer, found no infringement of consumer interests, and confirmed the validity of the loan
agreement.
Following the CJEU judgment of 19 June 2025 in case C-396/24 (Lubreczlik), the Supreme Court confirmed the applicability of the
legal principle defined in the resolution of the full formation of the Civil Chamber of the Supreme Court of 25 April 2024, ref. III CZP
25/22, i.e., where a loan agreement is not binding due to its terms being unfair, separate claims arise for the return of undue
benefits for each party of the agreement. On 6 August 2025, the Supreme Court passed a judgment in case II CSKP 774/23,
confirming that the theory of two separate claims applied to settlements between a bank and borrowers where the loan agreement
is declared invalid. Likewise, the Supreme Court in another formation pointed out in its judgment of 5 September 2025 in case II
CSKP 550/24 that the legal principle defined in point 3 of the resolution of the full formation of the Civil Chamber of the Supreme
Court of 25 April 2024 in case III CZP 25/22 was binding (similar to the judgment of the Supreme Court of 18 July 2025, II CSKP
84/23). In its judgment of 10 July 2025, II CSKP 64/23, the Supreme Court ruled that the legal principle defined by the full formation
of the Chamber of the Supreme Court could only be departed from by passing another resolution of the same formation (Article 88
of the Act on the Supreme Court).
As at 31 December 2025, 295 appeals on a point of law were filed with the Supreme Court in cases of CHF loans granted by the
Bank, 44 appeals were accepted by the Supreme Court for examination and are awaiting substantive decision, as to 159 appeals
on a point of law, the Supreme Court issued a decision on refusal to accept them for examination. Nine cases were sent back for
examination, while in 22 it dismissed the appeals on a point of law.
Draft Act on special solutions for handling cases concerning loan agreements denominated or indexed to CHF concluded
with consumers
On 30 January 2025, the Ministry of Justice published a draft Act on special solutions for handling cases concerning loan
agreements denominated or indexed to CHF concluded with consumers. Following comments raised in the public consultation and
the CJEU judgment of 19 June 2025 in case C-396/24 (Lubreczlik), a new draft Act was published dated 30 June 2025.
The goal of the draft law is to accelerate court proceedings concerning loan agreements denominated or indexed to CHF. The key
mechanisms set out in the draft include:
● protection of consumer interests (Article 3 of the draft) – once an action lodged by a consumer is served on the defendant or
once a counterclaim lodged by the consumer is served on the plaintiff, the obligation of the consumer to perform the benefits
arising from the loan agreement is suspended by law until the proceedings are closed with a final judgment;
● plea of offset (Articles 5 and 18 of the draft) – change to the time limitation for the option of raising the plea of offset in the
proceedings (until the proceedings are closed in second instance);
● counterclaim (Article 8 of the draft) – change to the time limitation in civil proceedings (under the general procedure, no later
than in the statement of defence) – allowing for a counterclaim to be lodged until the hearing is closed in first instance.
The draft law was tabled to the Sejm on 2 October 2025.
The Sejm held the first reading of the draft on 16 October 2025, after which the draft was referred to the Committee for Justice and
Human Rights (and the Committee for the Economy and Development). Both Committees started to work on the draft on 17
December 2025 at a joint meeting.
The work on the draft is scheduled to continue in 2026.
Individual settlements offered by the Bank in CHF loan cases
Since December 2021, the Bank is involved in individual negotiations with its customers with whom the Bank is in dispute or for
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 at 31 December 2025, the Bank made individual settlement proposals to 14,473 customers (13,915 customers as at 31
December 2024) and 7,130 customers accepted the terms of the proposals presented (6,202 in 2024), out of which 6,724
settlements were signed (5,550 in 2024).
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Other material court proceedings
Court proceedings concerning mortgage loan agreements with interest rates based on WIBOR
In January 2023, the Bank received the first claims challenging the variable interest rate clauses based on the WIBOR benchmark
in mortgage loan agreements. These claims 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
benchmark as well as the methods of calculating the benchmark and the factors influencing its change are contested.
By 31 December 2025, the Bank received a total of 130 claims (2 claims were withdrawn). The actions were filed on behalf of
consumers and relate to mortgage loan agreements in PLN, only 1 action 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 rate. The total value of the subject of litigation in ongoing court proceedings lodged by customers
is PLN 33,401 thousand. Most of the court proceedings are pending before the courts of first instance. In nine cases, judgments
of the court of first instance favourable to the bank were issued, three of which are legally binding. One judgment is unfavourable
to the Bank and is not legally binding.
Arguments challenging WIBOR as a benchmark are also raised in debt enforcement cases filed by the Bank.
The Bank’s position is that the customers’ claims are unjustified, in particular in view of the fact that WIBOR is an official benchmark
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
Polish Financial Supervision Authority confirmed WIBOR’s compliance with the requirements of the law. The same position was
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.
Four questions regarding WIBOR have been referred to the CJEU, including one question referred to in connection with a case
pending against the Bank:
● On 12 February 2026, the CJEU issued its judgment in case C 471/24 concerning PKO BP SA, in which it held that a national
court may not examine the method of determining the WIBOR benchmark, as doing so would violate the EU Benchmarks
Regulation (BMR). The Court did not accept the allegations challenging the reliability or market based nature of WIBOR. The
CJEU stated that banks did not have any special information obligations regarding the methodology of this benchmark. Banks
are required to comply with the information obligations imposed by Directive 2014/17/EU of the European Parliament and of
the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property, amending
Directives 2008/48/EC and 2013/36/EU, and Regulation (EU) No 1093/2010 as amended by Regulation 2016/1011, since the
obligation to publish and make available the benchmark methodology rests with the benchmark administrator. A bank is not
required to inform the consumer about the specific characteristics of the benchmark, in particular the nature of the input data
(price quotations rather than actual transactions) used to determine it, nor that the creditor contributes such data for the
benchmark’s calculation. The bank’s contribution of input data also does not constitute an imbalance in the rights and
obligations of the parties. A potential breach of information obligations regarding variable interest rates is not, in itself, sufficient
to invalidate the contract. Even in the event of such a breach, the court must subsequently examine the fairness of the clause.
In practice, this means comparing the contractual interest rate with statutory interest and with market rates applicable at the
time the contract was concluded.
● Case C-586/25 against PKO BP SA (agreement concluded before the effective date of the BMR and the mortgage loan act)
– the Court referred among other questions whether, in the light of Directive 93/13, the provisions of a loan agreement
concerning floating interest rates based on WIBOR could be considered to be phrased in a simple and understandable
language, whether the fact that the floating interest rate of a loan is based on WIBOR, whose determination rules were not
based on generally applicable law but which was determined by a third party while the bank had an indirect impact on the
benchmark, results in a significant imbalance of the rights and obligations of the parties, and whether, where the provisions of
an agreement concerning floating interest rates based on WIBOR are declared unfair contractual provisions, the agreement
may continue to exist as a loan at a fixed interest rate based on the bank’s margin or whether the agreement must be declared
invalid.
● Case C-607/25 against the Bank (the question concerns an agreement concluded after the effective date of the BMR and the
mortgage loan act) – the Court asks whether national legislation laying down the method for fixing the variable interest rate as
the value of the reference index and the amount of the margin ensures effective balance between the parties to the
agreement where the provisions of national law do not set any maximum limits on the permitted increase in the value of the
reference index and in the amount of the margin during the lifetime of the agreement, and the maximum interest rate permitted
under provisions of national law governing maximum contractual interest rates may be changed throughout the lifetime of the
agreement.
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● Case C-630/25 against PKO BP SA (agreement concluded before the effective date of the BMR and the mortgage loan act)
– the Court asks whether the requirement under Directive 93/13 to phrase the provisions of an agreement in a simple and
understandable way requires the bank to inform the consumer of the entity which is providing the benchmark forming the basis
of the interest rate on the loan and the detailed rules setting out the method for fixing the benchmark (in particular, whether
the bank is required to present the consumer with the regulations containing those rules for fixing the benchmark and whether
the bank is required to make the consumer aware that that benchmark is calculated on the basis of declarations by a group
of banks and not on the basis of actual market transactions). Furthermore, the Court asks whether it is possible to regard as
unfair a contractual term setting the interest rate on a loan that uses a benchmark which is calculated on the basis of
declarations by a group of banks and is not defined in provisions of national or EU law, with no State authority supervising the
manner in which that benchmark is provided, and which does not reflect the actual costs of financing the loan.
Court proceedings concerning claims of investment fund members in connection with the function of investment fund
depositary
Up to 31 December 2025, the Bank received in total 197 individual claims and 6 claims in collective proceedings lodged by
investment fund members in connection with the function of investment fund depositary (including the investment fund depositary
function performed by Raiffeisen Bank Polska S.A.).
The total amount of the claims is PLN 211,221 thousand. The total provisions are PLN 3,739 thousand.
The first two collective claims were filed by members of the Retail Parks Fund of Fundusz Inwestycyjny Zamknięty Aktywów
Niepublicznych w likwidacji (formerly Fundusz RPF) respectively on behalf of 397 members with claims at PLN 96,221 thousand
and on behalf of 181 members with claims at PLN 25,302 thousand.
Other collective claims are to establish the Bank’s responsibility for its actions as depositary of the following funds: (3) PSF 2
Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych (filed on behalf of 17 fund members; claims value not specified), (4)
PSF Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych (filed on behalf of 81 fund members; claims value not specified)
(5) EPEF Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych (filed on behalf of 42 fund members; claims value PLN 128
thousand) and (6) PSF Lease Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych (filed on behalf of 38 fund members;
claims value PLN 8,988 thousand).
The claims raised focus in particular on undue performance by Raiffeisen Bank Polska S.A. and subsequently the Bank of
obligations to ensure that the net asset value of the fund and the net asset value per investment certificate are calculated in
accordance with the law and the investment fund statute and of the obligation to check the compliance of the investment fund with
laws governing investment funds and with the statute. The Bank takes the view that the claims of the fund members against the
Bank are unfounded.
Up to 31 December 2025, a total of 27 non-final judgments of first instance courts and 2 legally valid judgments were passed:
● 1 legally valid judgment unfavourable to the Bank (in the case of the InMedica fund, the Court awarded PLN 64 thousand to
the plaintiff due to incorrect diversification of fund assets);
● 1 legally valid judgment favourable to the Bank (in the case of the InMedica fund, the Court dismissed the claim in its entirety
as the criteria of the Bank’s liability for damages were not met);
● 27 judgments favourable to the Bank (claims of individual fund members were dismissed as the criteria of the Bank’s liability
for damages were not met).
Court proceedings concerning free credit sanction referred to in Article 45 of the Consumer Credit Act of 12 May 2011
(‘u.k.k.’)
The institution of free credit sanction 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 free
credit sanction expires one year after the execution of the credit agreement.
The first lawsuits related to customers’ use of the free credit sanction started to be received by the Bank in 2021. As at 31 December
2025, the Bank received 1,456 lawsuits with a total litigation value of PLN 35,099 thousand.
As at 31 December 2025, the provisions stood at PLN 1,491 thousand.
The Bank disputes the validity of the claims raised in these cases.
The jurisprudence to date is overwhelmingly in favour of the Bank.
Out of all the cases pending against the Bank: 943 are at first instance, 217 are at the second instance stage, while 296 have been
finalised.
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The use of the free credit sanction is also raised in the Bank’s debt enforcement proceedings. As at 31 December 2025, the plea
was raised in 64 such cases.
Legal issues concerning the free credit sanction are the subject of numerous preliminary questions referred 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 (C-566/24, C-744/24 and C-473/25),
● the interpretation of the one-year time limit for declaring use of the free credit sanction (C-566/24),
● the scope of the consumer’s information on the early repayment procedure (C-566/24, C-831/24) and the consumer’s right of
withdrawal (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 use of the free credit sanction (C-831/24),
● the application of the free credit sanction in the light of the principle of proportionality (C-566/24, C-831/24, C-684/25),
● the mutual relation of unfair terms of contracts and the free credit sanction (C-429/25, C-684/25) and information obligations
of the Court versus the consumer in this regard (C-684/25),
● the admissibility of the free credit sanction where the financial institution formally performed the information obligation but the
information provided to consumers was erroneous or unclear (C-473/25),
● the admissible method of phrasing the modification clause on fees and commissions reserved in the agreement and the
grounds for the free credit sanction in the case of minor irregularities to this extent which do not affect the consumer’s decision
to enter into the agreement (case C-684/25).
On 24 October 2024, the Court of Justice (EU) passed 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 (“Directive 2008/48”) 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.
On 13 February 2025, the CJEU passed its judgment in case C-472/23 concerning the impact of an overstated annual percentage
rate of charge (due to terms providing for interest on non-interest costs being declared unfair) on an infringement of the information
obligation by the creditor which may result in the application of the free credit sanction, the rules for phrasing of clauses providing
the terms of adjusting fees and commissions, the proportionality of national legislation providing for a uniform sanction for each
infringement of information obligations. The CJEU ruled that:
1. the fact that a credit agreement refers to an annual percentage rate of charge, which proves to be overstated because certain
terms of that agreement are subsequently found to be unfair, does not constitute, in itself, an infringement of the creditor’s
obligation to provide information which may result in the application of the free credit sanction;
2. the provisions of the loan agreement which provide for a change in the fees paid under the agreement should be worded in a
clear and understandable way so that a reasonably well-informed and reasonably observant and circumspect consumer is in
a position to ascertain whether circumstances justifying an increase in the costs have arisen and their effect on those costs;
3. the principle of proportionality of sanctions does not preclude national legislation which provides for a uniform penalty in the
event of an infringement of the creditor’s information obligation, consisting of depriving the creditor of its right to interest and
charges, irrespective of the individual level of seriousness of such an infringement, where that infringement is capable of
calling into question the possibility for the consumer to assess the extent of his or her liability.
On 9 October 2025, the CJEU passed a judgment in case C-80/24 concerning the admissibility of a claim assignment arising from
a consumer credit contract and the obligation of the court to examine the assignment of its own motion to check whether its terms
are unfair. The CJEU ruled that Directive 2008/48 does not preclude national legislation that allows a consumer to assign a claim
arising from the infringement of a right conferred on him or her to a third party which is not a consumer and that Directive 93/13
must be interpreted as meaning that a national court is not required to examine of its own motion the unfairness of a term in a
claim assignment agreement concluded where the dispute does not concern that assignment agreement, but the consumer’s claim
against that seller or supplier.
The interpretation of the provisions on the free credit sanction is also the subject of legal issues referred for consideration by the
Supreme Court, concerning: the obligation of the court to examine of its own motion all circumstances which justify the application
of the free credit sanction (including other than those indicated in the content of the declaration submitted by the consumer on the
use of the free credit sanction), the interpretation of the one-year time limit for the submission of the declaration on the use of the
free credit sanction, the mutual relation of unfair terms and the free credit sanction, as well as the admissibility of interest on non-
interest costs and the possibility of applying the free credit sanction on this account (ref. III CZP 3/25 and III CZP 15/25). The
Supreme Court has suspended these cases as long as the cases referred by Polish courts to the CJEU are pending.
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55. FINANCIAL RISK MANAGEMENT
55.1. 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-bank financial entities. 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, subsidised 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, commodity) risk inherent in their core business.
55.2. 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 Bank Polska S.A. Proof of the key nature of credit risk is its 55.45% 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 87.28% 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
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 business units;
● 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 into 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 in its statutory operations, which is appropriately defined and managed.
The Management Board assesses the concentration risk management 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 process 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.
Credit portfolio diversification is one of the key credit risk management tools. The Bank 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 diversification of the loan portfolio and mitigation of negative effects of adverse changes in the economy.
A significant concentration area (aspect) is 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.
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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 Regulation No 575/2013: An institution shall not incur an exposure to a
customer or group of connected clients the value of which exceeds 25 % of its Tier 1 capital, after taking into account the effect of
the credit risk mitigation in accordance with Articles 399 to 403. Where that client is an institution or an investment firm, or where
a group of connected clients includes one or more institutions or investment firms, that value shall not exceed 25 % of the
institution’s Tier 1 capital or EUR 150 million, whichever is higher, provided that the sum of exposure values, after taking into
account the effect of the credit risk mitigation in accordance with Articles 399 to 403, to all connected clients that are not institutions
or investment firms, does not exceed 25 % of the institution’s Tier 1 capital.
As at 31 December 2025, the limits set out in Article 395 of the Regulation No. 575/2013 with respect to BNP Paribas S.A Group
entities were not exceeded, the Bank’s exposure represented 11.45% 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 19.93% 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 growth rate of the Bank’s business, an acceptable level of credit risk and liquidity risk, 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.
Measures that limit the Bank’s exposure to concentration risk may include systemic measures and one-off / specific decisions 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 concentration risk limits;
● diversification of asset types at 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 measures which are single/specific decisions and transactions include the following:
● reduction of further transactions with a given customer or a group of related customers;
● sale of selected assets/loan portfolios;
● securitisation of assets;
● establishing 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 of 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 as at 31
December 2025 shows concentration towards the following industries: Agriculture, Forestry, Hunting and Fishing, and Industrial
Processing. As at 31 December 2025, the share of Industrial Processing increased by 0.3 p.p. compared to 31 December 2024,
i.e. to 21.0%, while the share of Agriculture, Forestry, Hunting and Fishing decreased by 2.9 p.p. compared to 31 December 2024
and amounted to 14.5% of industry exposure.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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The table below shows the breakdown of loans measured at amortised cost and those measured at fair value through profit or loss
by industry of activity (gross balance sheet value at 31 December 2025 and 31 December 2024).
Gross balance
sheet value*
Gross balance
sheet value*
Share of
impaired loans
Share of
impaired loans
Industry
31.12.2025
31.12.2024
31.12.2025
31.12.2024
INDIVIDUAL CUSTOMERS
34,428,411
32,858,354
2.0%
2.3%
CORPORATE CUSTOMERS:
54,827,829
51,115,701
3.1%
3.8%
AGRICULTURE, FORESTRY, HUNTING AND
FISHING
7,975,070
8,895,844
3.8%
4.8%
MINING AND QUARRYING
27,401
24,514
0.6%
0.0%
MANUFACTURING
11,506,942
10,595,802
6.0%
6.2%
ELECTRICITY, GAS, STEAM, HOT WATER AND
AIR CONDITIONING SUPPLY
1,373,526
955,262
0.2%
0.2%
WATER SUPPLY; SEWERAGE, WASTE
MANAGEMENT AND REMEDIATION ACTIVITIES
90,155
89,439
13.8%
2.6%
CONSTRUCTION
2,224,152
1,875,345
4.6%
7.7%
WHOLESALE AND RETAIL TRADE; REPAIR OF
MOTOR VEHICLES AND MOTORCYCLES
6,987,633
6,656,805
3.5%
4.1%
TRANSPORTATION AND STORAGE
2,038,296
2,172,938
2.0%
2.2%
ACCOMMODATION AND FOOD SERVICE
ACTIVITIES
341,751
294,010
7.8%
15.6%
INFORMATION AND COMMUNICATION
ACTIVITIES
2,760,722
2,524,501
0.4%
0.5%
FINANCIAL AND INSURANCE ACTIVITIES
5,420,069
5,734,522
0.1%
0.2%
REAL ESTATE ACTIVITIES
6,148,620
5,712,575
3.3%
3.7%
PROFESSIONAL, SCIENTIFIC AND TECHNICAL
ACTIVITIES
2,687,717
2,978,438
1.0%
2.4%
ADMINISTRATIVE AND SUPPORT SERVICE
ACTIVITIES
3,690,554
1,338,643
0.5%
1.2%
PUBLIC ADMINISTRATION AND DEFENCE,
COMPULSORY SOCIAL SECURITY
166,957
57,507
0.0%
0.0%
EDUCATION
150,743
66,233
4.8%
4.1%
HUMAN HEALTH AND SOCIAL WORK
ACTIVITIES
1,086,590
1,051,135
1.5%
1.7%
ARTS, ENTERTAINMENT AND RECREATION
ACTIVITIES
60,480
8,081
5.9%
8.1%
OTHER ACTIVITIES
90,451
84,107
3.6%
5.2%
Total
89,256,240
83,974,055
2.7%
3.2%
*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 on the share of particular types
of collateral, ensuring their appropriate diversification. As at 31 December 2025. 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, with the exception of critical values for industries, whose consumption is
determined monthly.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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-bank customers, and large businesses (customers of
the CIB, Corporate Banking Segment) at 4% of the total deposit balance of non-bank 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.
As at 31 December 2025 and as at 31 December 2024, the critical values for deposit concentration were not exceeded.
Maximum exposure to 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.
31.12.2025
Assets
Maximum exposure to
credit risk
– no collateral included
Maximum exposure to
credit risk
– collateral included
Cash and balances at Central Bank
10,225,208
10,224,866
Amounts due from banks
11,526,070
11,524,131
Derivative financial instruments
2,359,460
2,359,460
Fair value adjustment of hedged and hedging items
345,550
345,550
Loans and advances to customers measured at amortised cost
88,970,057
86,786,401
Loans and advances to customers measured at fair value through profit or
loss
286,183
286,183
Securities measured at amortised cost
36,185,060
36,180,626
Securities measured at fair value through profit or loss
240,409
240,409
Securities measured at fair value through other comprehensive income
24,719,802
24,719,802
Other financial assets
682,846
643,456
Total assets
175,540,645
173,310,884
Total contingent liabilities
39,191,098
39,035,911
Total exposure to credit risk
214,731,743
212,346,795
31.12.2024
Assets
Maximum exposure to
credit risk
– no collateral included
Maximum exposure to
credit risk
– collateral included
Cash and balances at Central Bank
11,325,949
11,325,551
Amounts due from 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
Other financial assets
1,028,703
961,750
Total assets
162,506,568
160,102,065
Total contingent liabilities
34,611,132
34,454,271
Total exposure to credit risk
197,117,700
194,556,336
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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Exposure to credit risk by credit quality rating
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:
31.12.2025
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
26,473
508
-
7
26,988
26,974
3
4,296,223
101,110
-
-
4,397,333
4,393,716
4
7,038,497
29,817
-
151
7,068,465
7,050,222
5
10,399,331
194,318
-
1,100
10,594,749
10,548,327
6
17,645,972
982,211
-
2,319
18,630,502
18,520,526
7
7,200,041
1,693,787
-
2,449
8,896,277
8,741,379
8
480,327
1,915,333
-
1,939
2,397,599
2,202,333
9
20,965
535,455
-
1,257
557,677
483,463
10
-
221,530
-
219
221,749
186,800
11 to 12
-
-
1,631,959
75,433
1,707,392
829,794
no rating
43,050
-
-
-
43,050
43,050
Total
47,150,879
5,674,069
1,631,959
84,874
54,541,781
53,026,584
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
*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 2025
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The rating assessment is performed for the Bank’s total loan portfolio excluding retail 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 (customers for whom the Bank identifies the lowest credit risk) to 12 (customers for whom the Bank
identifies the highest credit risk). In order to assign ratings, the annual financial data provided by the customer and the general
quality assessment of its market situation are used.
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 is presented in the tables below.
31.12.2025
Structure of overdue loan
portfolio (net balance sheet
value)
not impaired
impaired
Total
0 days
1-30 days
31-60 days
61-90 days
Overdraft
35,191,300
1,140,705
24,758
11,952
572,613
36,941,328
Investment loans
18,702,827
540,562
8,896
687
274,438
19,527,410
Mortgage loans for retail customers
20,946,527
62,118
4,752
1,383
94,459
21,109,239
Other loans
9,248,244
28,592
2,543
907
130,641
9,410,927
Lease receivables
79,095
-
-
-
4,585
83,680
Total
84,167,993
1,771,977
40,949
14,929
1,076,736
87,072,584
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
Overdraft
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
* 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 DSTI (debt service to income) 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 DSTI following the requirements of Recommendation S. The Bank
monitors the level of DSTI during annual credit policy reviews, as well as in dedicated ad hoc analyses.
As at 31 December 2025, 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 imposed on Russia and Belarus, the Bank analysed credit
exposures directly related to these countries and, on this basis, did not identify significant exposures in the corporate and retail
portfolios.
At the same time, the Bank monitors the situation of customers on an ongoing basis with a view to protecting the loan portfolio and
maintaining its high quality. Preventive actions taken in Q1 2022 are continued. As part of these activities, institutional customers
are analysed if their business activity is:
● linked to the economies of the above countries and thus may be vulnerable to war and imposed sanctions,
● particularly vulnerable to inflation,
● vulnerable to the Russian gas embargo,
● exposed to a more restrictive US trade policy.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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For the selection of the war-exposed loan portfolio, the Bank takes into account, inter alia, the following factors:
● export/import to/from countries at risk,
● capital or organisational links with Russian or Belarusian citizens,
● transport services provided in countries at risk or logistic channels passing through countries at risk,
● production carried out in countries at risk,
● investments in fixed assets and capital investments in countries at risk,
● existence of commercial contracts in countries at risk (especially construction contracts),
● employment of workers from Russia, Ukraine or Belarus,
● 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 energy and material costs in operating expenses and the share of imports
in operating expenses 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.
To assess the impact of customs tariffs imposed by the USA, the Bank performed a sector analysis based on public data of exports
to the USA. The analysis identified sensitive sectors which were divided into 4 categories: high impact, relatively high impact,
relatively low impact, low impact.
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.
Collateral
Description of collateral held or other mechanisms that improve the credit quality
The Bank assesses the creditworthiness of each customer 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 collateral on the valuation of exposure with identified impairment (loans measured at amortised cost and at fair value
through profit or loss)*
31.12.2025
Gross value with
impairment
Collateral value
Net value with
impairment
Loans and advances for:
Non-bank financial entities
3,092
386
766
Retail customers
676,680
280,801
227,647
Corporate customers:
1,715,774
1,311,709
843,738
including individual farmers
279,942
235,757
134,138
Lease receivables
7,867
-
4,585
Total gross loans and advances
2,403,413
1,592,896
1,076,736
Allowances (negative value)
(1,326,677)
Total net loans and advances
1,076,736
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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31.12.2024
Gross value with
impairment
Collateral value
Net value with
impairment
Loans and advances for:
Non-bank financial entities
9,279
4,182
2,020
Retail customers
739,323
337,749
260,182
Corporate customers:
1,911,785
1,450,456
943,553
including individual 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
*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 retail mortgage loans in foreign currencies is PLN 272,724 thousand, which accounts for
less than 1% of the Bank’s loan portfolio to the non-financial sector (gross carrying amount), a major part of which (93%) are loans
in CHF (the Swiss franc).
The Bank 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 with the gross balance sheet value of individual LTVs.
The total on-balance sheet exposure and the average LTVs for retail mortgage loans in foreign currencies by impairment and days
past due is presented below:
days past due
gross balance sheet value
average LTV
weighted with gross
balance sheet value
0-30 days
175,348
55.40%
31-60 days
730
50.36%
61-90 days
620
61.53%
over 90 days
96,026
89.29%
Total
272,724
65.83%
impairment identified
gross balance sheet value
average LTV
weighted with gross
balance sheet value
NO
173,462
55.06%
YES
99,262
88.71%
Total
272,724
65.83%
The average current LTV for the entire foreign currency retail mortgage loan portfolio was 65.83%, while the average current LTV
for loans in PLN was 48.17%.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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Exposure structure and average current LTV by loan granting year (retail 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
balance sheet value
gross balance sheet
value*
2005 and earlier
658
11,182
34.86%
8,975
2006
1,483
47,196
50.02%
32,962
2007
1,410
66,700
66.76%
46,171
2008
1,532
110,017
80.70%
63,136
2009
149
11,903
42.68%
8,485
2010 and later
110
25,726
45.83%
13,734
Total
5,342
272,724
65.83%
173,462
*non-impaired loans
Forbearance practice
The Bank treats its exposures as forborne if the debtor is provided with facilities due to economic reasons (financial difficulties),
including any facility granted for exposures with identified impairment triggers. In case a facility 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. capitalisation 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;
● currency conversion of an existing loan;
● 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.
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, where such difficulties may occur in the future.
For retail customers, non-reporting individual farmers and companies with simplified accounting, an event of financial difficulties is
identified where:
● the exposure is subject to debt enforcement; or
● the exposure is not subject to debt enforcement 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:
● customer with default status, or
● customer with indicated rating meeting defined financial criteria.
The Bank also has dedicated criteria regarding financial difficulty for customers from the Real Estate segment.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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A material economic loss is defined by the Bank as a decrease of present value of expected cash flows, resulting from facilities
granted, equal or higher than 1%. The decrease of the present value is calculated in accordance with the formula below:
NPVo-NPV1
NPVo
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, the original interest
rate for the purpose of assessing the significance of economic loss is the average EIR weighted with the gross balance sheet
exposure at the moment of granting the facility.
The change in the present value of expected cash flows is calculated at the level of single exposure.
In justified cases resulting from complex restructuring measures for a given customer (e.g. priority repayment of loans with a
collateral of a low value), it is permissible to calculate NPV at the level of a customer.
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 more than 30 days past due;
● the debtor has been making regular and considerable payments for at least a half of the trial period.
The forborne status is revoked in accordance with the aforementioned conditions, while the extension of the period of exit from
forborne status requires a credit decision by the competent credit decision-makers; in other cases the status is revoked
automatically.
31.12.2025
Forborne exposures
Total portfolio
including
forbearance
exposures
including change
of terms
including
refinancing
Loans and advances for:
89,256,240
1,379,016
1,343,098
35,918
Non-bank financial entities
6,122,520
275
227
48
Retail customers
34,428,411
213,431
206,700
6,731
Corporate customers:
48,390,652
1,165,310
1,136,171
29,139
including individual farmers
7,544,080
183,137
182,458
679
Public sector entities
218,025
-
-
-
Lease receivables
96,632
-
-
-
Impairment losses on loans and advances
for:
(2,183,656)
(548,417)
(539,512)
(8,905)
Non-bank financial entities
(48,348)
(80)
(78)
(2)
Retail customers
(668,459)
(97,747)
(95,376)
(2,371)
Corporate customers:
(1,452,913)
(450,590)
(444,058)
(6,532)
including individual farmers
(249,325)
(51,424)
(51,419)
(5)
Public sector entities
(984)
-
-
-
Lease receivables
(12,952)
-
-
-
Total net loans and advances
87,072,584
830,599
803,586
27,013
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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-bank financial entities
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 individual farmers
8,174,363
242,870
241,424
1,446
Public sector entities
67,960
-
-
-
Lease receivables
151,860
-
-
-
Impairment losses on loans and advances
for:
(2,332,291)
(537,219)
(523,464)
(13,755)
Non-bank financial entities
(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 individual farmers
(361,727)
(86,081)
(86,041)
(40)
Public sector entities
(516)
-
-
-
Lease receivables
(26,971)
-
-
-
Total net loans and advances
81,641,764
1,091,150
1,053,666
37,484
Country risk
Under credit risk, the Bank additionally distinguishes country risk, which covers all risks related to conclusion of financial
agreements with foreign parties, where it is possible that economic, social or political events will have an adverse effect on
creditworthiness of the Bank’s debtors in that country or where intervention of a foreign government could prevent the debtor
(which could also be the government itself) from meeting its 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 31 December 2025, 83% 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 12% and the
remainder (5%) was foreign trade transactions (letters of credit and guarantees). France accounted for 40% of exposures, Italy
15%, the USA 13%, Luxembourg 7%, the Netherlands and Germany 6% each, Spain 5%, and Austria 2%. The remaining
exposures were concentrated in Belgium, Turkey and the Czech Republic.
The Bank had no material credit exposures in Russia, Ukraine, and Belarus.
55.3. Counterparty risk
Counterparty risk is the credit risk concerning counterparty transactions in case of which the amount of liability may change in time
depending on market parameters. Therefore, counterparty risk is related to transactions in 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 meet 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 settlement dates.
As at 31 December 2025, 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 means 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 2025
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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 set out 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.
As at 31 December 2025, the Bank’s exposure to counterparty risk due to concluded derivative transactions was PLN 2.6 billion
(PLN 3.2 billion as at 31 December 2024). Corporate customers accounted for 77% of the exposure, while the remaining 23%
were banks.
In connection with the ongoing war in Ukraine and the economic sanctions imposed on 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 customers 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 customers 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 has not observed significant changes in the materialisation of counterparty risk.
55.4. Interest rate risk in the banking book (ALM Treasury)
The banking book of BNP Paribas Bank Polska S.A. is composed of two parts. The first one is the ALM portfolio where structural
interest rate, currency and liquidity risks are managed, resulting from the structure of the statement of financial position determined
by the core lending, deposit and investing operations of the Bank. On the other hand, the Treasury portfolio is used for 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 in 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 (including equity,
property, plant and equipment, 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, while 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-term deposits and interest-free accounts.
The adjusted interest rate gap, net interest income sensitivity, and economic capital sensitivity are the key measures of 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 where 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 market interest rates;
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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e) for the portfolio of impaired loans - for net values (decreased by the created provisions) - the average contractual maturity for
unimpaired exposures (Stage 1 and 2) increased by two years is applied,
f) economic capital is calculated based on positions at internal prices.
As part of interest rate risk management in the banking book, 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 hedges a
significant portion of them with long-term positions (bonds, interest rate swaps). Regarding other commercial items, the Bank aims
to hedge interest rate risk.
For interest rate risk models, the Bank follows the provisions of Recommendation W regarding verification of the model, 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 a stable part and a variable part, which is assigned to the ON tenor 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 non-structural 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 mortgage, floating-rate
mortgage) 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 book. Medium and long-term interest rate positions
are hedged with IRS transactions and fixed rate bonds. Short-term positions are hedged using FRA/IRS transactions.
Utilisation of the interest rate limits in 2025 and 2024 was stable.
The tables below present the Bank’s adjusted interest rate gap as at 31 December 2025 and 31 December 2024 (PLN’000)* on a
separate basis:
31.12.2025
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
10,224,866
-
-
-
-
10,224,866
Amounts due from banks
11,503,131
-
21,000
-
-
11,524,131
Loans and advances to
customers
26,756,087
30,063,670
13,534,466
13,956,460
1,693,267
86,003,950
Investment securities
2,295,000
2,758,540
4,022,134
30,890,999
20,795,741
60,762,414
Other assets
1,228,287
62,173
279,780
1,492,161
746,080
3,808,481
Total assets:
52,007,371
32,884,383
17,857,380
46,339,620
23,235,088
172,323,842
Amounts due to banks
(3,157,959)
(2,735,448)
(30,000)
-
-
(5,923,407)
Amounts due to customers
(51,035,138)
(24,027,571)
(24,726,078)
(27,216,481)
(14,019,654)
(141,024,922)
Other amounts due
(4,184,433)
(650,000)
-
-
-
(4,834,433)
Capital
92,057
(357,526)
(4,334,217)
(8,580,629)
(4,290,314)
(17,470,629)
Other liabilities
(4,738,000)
-
-
-
-
(4,738,000)
Total liabilities:
(63,023,473)
(27,770,545)
(29,090,295)
(35,797,110)
(18,309,968)
(173,991,391)
Net off-balance sheet
liabilities
1,821,830
(3,149,021)
3,649,356
(1,758,185)
(363,380)
200,600
Interest rate gap
(9,194,272)
1,964,817
(7,583,559)
8,784,325
4,561,740
(1,466,949)
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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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 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)
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)
*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 book between 1 and 3 years, resulting from changes
in market interest rates, are the measure of its sensitivity. For risk management and 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 stressed 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 no shift between
deposit products, is presented in the tables below.
Immediate shift in interest rates for all currencies by 100 bps:
31.12.2025
31.12.2024
increase
345,110
313,080
decrease
(352,540)
(316,630)
Sensitivity of net interest income by main currencies:
Immediate shift in interest rates
by 100 bps:
PLN
EUR
USD
CHF
increase
232,280
88,354
20,810
(1,426)
decrease
(239,918)
(88,354)
(20,810)
1,622
Thanks to the medium- and long-term investments of the structural elements, the Bank’s supervisory outlier test of net interest
income sensitivity (SOT NII) remains below 5% of Tier1 capital. As at 31 December 2025, SOT NII stood at -4.49%. 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. As at 31 December 2025, the maximum SOT EVE was -6.32%.
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
1,020 thousand.
The war in Ukraine did not affect the method of managing the interest rate risk in the banking book.
Impact of the benchmark reform on BNP Paribas Bank Polska S.A.
In connection with a plan to replace the WIBOR interest rate benchmark with a new reference index, the Polish Financial
Supervision Authority established, at the request of financial market participants, a National Working Group (“NWG”). The work of
the NGR is supervised and coordinated by the NWG Steering Committee.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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According to the NWG Steering Committee’s communication of 25 October 2023, the conversion to the new benchmark will take
place at the end of 2027.
Following a 2024 review and analysis of benchmarks alternative to WIBOR, the NWG Steering Committee identified POLSTR as
the target benchmark on 18 December 2024. POLSTR represents the average interest rate weighted with the volume of O/N
deposit transactions in PLN on the wholesale money market defined as the market of unsecured deposits made by credit
institutions and financial institutions.
The POLSTR administrator within the meaning of Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8
June 2016 (BMR) is a subsidiary of the Warsaw Stock Exchange, GPW Benchmark S.A., entered in the register of the European
Securities and Markets Authority. POLSTR is expected to become a critical interest-rate benchmark within the meaning of the
BMR.
The Roadmap (“Roadmap”) for the replacement of WIBOR and WIBID reference rates, updated by the NWG Steering Committee
on 28 March 2025, provides for the definition of standards for the use of POLSTR in banking products, debt instruments and
derivatives and for a wide use of POLST on the Polish financial market.
On 2 June 2025, GPW Benchmark S.A. started to publish POLSTR and POLSTR-based compound indices: the single-base index
and historical compound indices for 1M, 3M and 6M. On 1 September 2025, POLSTR was granted benchmark status under the
BMR requirements.
On 30 September 2025, GPW Benchmark S.A. announced cessation of the provision and publication of selected WIBID and
WIBOR reference rates:
● Overnight (O/N) – as of 1 October 2026,
● Tomorrow/Next (T/N) – as of 22 December 2025,
● 2 weeks (2W) - as of 22 December 2025,
● WIBOR 1 year (1Y) as of 22 December 2025 based on the existing method, but from 22 December 2025 to 21 December
2026, WIBOR 1Y is determined under the algorithmic method based on WIBOR 3M and an adjustment spread.
The communication also referred to the 1 week (SW) tenor which is calculated as of 22 December 2025 as an index within the
meaning of the BMR. The calculated SW values cannot be used or applied in financial contracts and instruments as a benchmark
within the meaning of the BMR.
On 21 November 2025, the Ministry of Finance completed the first issue of Treasury bonds based on POLSTR, which is a key
milestone under the Roadmap. According to the recommended benchmark use standards, the interest rate on the bonds is based
on a compound interest rate calculated separately for each business day of the interest period.
The regulatory event triggers are planned to be verified in 2026.
2
According to the assumptions, the occurrence of a regulatory
event will cause the Minister of Finance to issue a Regulation identifying a replacement to the critical benchmark WIBOR. The
Regulation of the Minister of Finance will apply to financial contracts and instruments which are not subject to contractual
conversion. The Roadmap provides for readiness to cease the provision and publication of WIBID and WIBOR as of the beginning
of 2028.
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 includes
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. Following the decisions of the NGR
Steering Committee on Reference Indicator Reform, the Bank withdrew the WIRON / WIRON compound rate from the Bank’s
product offering.
As at 31 December 2025, the Bank identified:
● WIBOR-based financial assets in PLN million by index tenor:
ON
1W
1M
3M
6M
1Y
Total
432
29
13,216
29,765
10,767
14
54,223
2
Defined in Article 23c(1) of Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial
instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No
596/2014
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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135
● WIBOR-based financial liabilities in PLN million by index tenor:
ON
1W
1M
3M
6M
1Y
Total
5,357
65
4,118
3,372
2
0
12,914
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 2,355 million, of which PLN 2,355 million under fair value hedge accounting, and based on WIBOR 6M with a total nominal
value of PLN 12,538 million, of which PLN 11,788 million under hedge accounting.
The Bank also had financial assets based on POLSTR of PLN 95 million.
In the Bank’s view, establishing an appropriate method for determining the spread adjustment and its application, the development
of an effective derivatives market, and the issuance of Treasury debt based on the new benchmark are critical elements of the
Roadmap. The Bank expects that the implementation of the Roadmap will largely mitigate risks which may materialise during the
reform including:
● high uncertainty regarding the valuation of on-balance sheet and off-balance sheet items,
● early closure of IRS contracts by central counterparties 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.
At present, it is not possible to identify any rationale for cessation of the publication of EURIBOR. Thus, the flows resulting from
this benchmark are exchanged between the counterparties under the current rules.
55.5. Market risk (interest rate risk in the trading book and currency risk)
Market risk management organisation
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 currency risk, the Bank is sensitive to changes in market interest rates, foreign
exchange rates, securities prices and implied volatility of options leading to changes in the result on measurement of the present
value of financial instruments. 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 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 authorisations and place of each organisational
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 the trading book in line with the defined market risk limits, including limits related to interest rate in the trading book and currency
risk, which is managed at a centralised level for the entire Bank. The Integrated Risk Management Division is in charge of
measuring and reporting risk and limit exceedances. Additionally, the Integrated Risk Management Division ensures that financial
instruments are measured properly. The management result is calculated by the Financial Market Transactions Monitoring
Department, while transactions are recorded and settled by the Financial Market Transactions Processing Department. The system
of limit exceedance acceptance is hierarchical. It depends on the period of an exceedance 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 exceedance. Irrespective of the process, all limit exceedances 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-bank
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 positions in the commodity market.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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136
As part of the interest rate risk exposure, which is the key exposure in the trading book, the Bank could enter into IRS, OIS, CIRS,
FRA and basis swap transactions and purchase and sale of foreign currency options and interest rate options. Interest rate risk
was also determined by positions resulting from FX Swap and FX Forward transactions.
Throughout 2025, as part of internal risk limits, the Bank maintained an open option position in order to optimise the result, i.e.
generate additional benefits due to the lack of immediate closing of customer positions by opposite transactions on the interbank
market. The priority of the Bank is to hedge interest rate risk and currency risk.
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 interest rate risk in the trading book. Additionally, the Bank
conducts sensitivity analyses using stressed conditions, 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
2025 in absolute terms (average PLN -2 thousand) than in 2024 (-PLN 17 thousand).
The table below shows interest rate risk in the trading book in terms of BPV (Basis Point Value, in PLN’000).
31.12.2025
31.12.2024
BPV*
PLN
EUR
PLN
EUR
31.12.
(20)
(65)
11
25
average
(2)
(47)
(17)
(14)
max
55
34
51
28
min
(74)
(99)
(69)
(62)
*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 sensitivity to a 1 basis point movement in interest rate curves
and to currency risk in 2025 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 29% of the allocated limit (compared to 35% a year earlier).
Currency risk
The Bank, while measuring 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
back-testing period covers the last 250 business days. The VaR model was back-tested in 2025 and the results indicate that there
is no necessity to make any adjustments.
Foreign currency transactions used for management of the Bank’s currency position were characterised by a stable exposure and
a low risk. The risk resulting from foreign currency transactions with customers was hedged on the inter-bank market. The level of
risk exposure was maintained at a low level, i.e. around 11% 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 table below presents currency risk of the Bank expressed as FX VaR (in PLN’000):
31.12.2025
31.12.2024
FX VaR*
average
273
315
max
1,693
1,600
min
25
21
*The Bank uses a historical exponential method which assumes a confidence level of 99% and a one-day holding period of positions
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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The table below presents the currency structure of assets and liabilities in their balance sheet value expressed in PLN’000:
31.12.2025
31.12.2024
Currency position items
Assets
Liabilities
Assets
Liabilities
USD
5,657,786
6,187,279
7,229,614
6,060,130
GBP
133,403
478,217
86,456
467,064
CHF
200,505
2,006,307
350,226
2,521,591
EUR
37,331,427
30,239,785
29,394,845
24,778,317
Other currencies
111,360
197,293
84,913
224,739
PLN
132,875,653
137,201,253
125,941,447
129,035,660
Total
176,310,134
176,310,134
163,087,501
163,087,501
55.6. 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 balance sheet 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 stressed conditions.
The Bank ensures separation and independence of its operations, risk management, control and reporting functions. In particular,
transactions with counterparties and customers are entered into by the business lines, 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 and a circular letter of the Vice-President of the Management
Board (risk measurement and monitoring policy and methodologies), developed in compliance with the guidelines set out in
Recommendation P of the Polish Financial Supervision Authority and 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 supports
optimisation 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.
In compliance with the requirements of Recommendation P, the Bank conducts numerous analyses verifying its ability to maintain
liquidity in crisis situations. Stress tests cover comprehensive scenarios considering internal and systemic factors and combining
different variants with possible interactions. Stress test results are taken into account in determining liquidity limits. The Bank has
a comprehensive contingency plan in place. It covers various scenarios along with action plans for liquidity crises in the Bank and
in the banking system as a whole. Stress test results are correlated with the contingency plan and reaching defined warning levels
triggers the contingency 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 adjusted
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.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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Additionally, sales plans (covering loans and deposits) are monitored, by business line, and simulation analyses are performed.
Furthermore, the Bank analyses the costs of the deposit base with a view to optimising 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
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 Regulation (EU) 2019/876 of the European Parliament and
of the Council of 20 May 2019 amending Regulation (EU) No. 575/2013 and developed in line with 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 Liquidity Contingency Plan. Theses allow, when warning levels are reached, to
introduce remedial actions and restore the Bank’s safety in terms of liquidity across all tenors.
Liquidity risk profile
In 2025, 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 high level which was sufficient to offset a potential
outflow of funds placed with the Bank by the major depositors in whole.
2025 was another year of the war in Ukraine, but the situation required no specific liquidity management measures by the Bank.
The Bank maintained on its portfolio government bond 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 31 December 2025, the Bank’s surplus liquidity was at the level of PLN 78 billion:
31.12.2025
31.12.2024
Balances at Central Bank (above the mandatory reserve requirement)
5,639,148
4,464,719
Cash at other banks up to 30 days
11,502,379
7,599,214
Highly-liquid securities*
61,140,837
51,786,398
Surplus liquidity up to 30 days
78,282,364
63,850,331
*amount of securities according to valuation
The liquidity surplus increased compared to the end of 2024, mainly due to a significant increase in highly liquid securities and an
increase in funds in other banks held up to 30 days (nostro accounts), and the Bank had a higher surplus over the required reserve
requirement at the turn of the year.
31.12.2025
31.12.2024
limit
Liquidity Coverage Ratio (LCR)
279%
234%
100%
In 2025, the Bank continued to optimize its funding sources, the aim of which is to reduce the unnecessary, and at the same time
costly and unstable surplus of financing from non-bank customers. The Bank also replaced some of the loans (EUR 100 million,
CHF 150 million, PLN 2,300 million) with issues of own bonds in the amount of EUR 990 million. As a result of these operations,
the total value of medium and long-term loans from the BNPP Group and its subsidiaries increased slightly.
The stability of the Bank’s funding sources remained at a slightly lower level throughout 2025 compared to the previous year.
31.12.2025
31.12.2024
balance
stable (%)
balance
stable (%)
long-term loans from the Group
8,232,061
100%
7,458,669
100%
other long-term loans
450,000
100%
450,000
100%
retail
59,183,277
97%
55,180,605
97%
corporates
82,171,790
91%
75,191,081
92%
banks and other unstable sources
8,802,376
0%
6,944,218
0%
Total
158,839,504
88.6%
145,224,573
89.9%
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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The stability of the individual components of the Bank’s funding is calculated based on the sources of financing: wholesale funding
in the form of loans or own issue instruments is assessed according to its contractual maturity, and therefore its stability is assumed
to be 100%. Customer funding is calculated based on the weighted average stability of individual sources by business line, product
and currency, in accordance with the liquidity models for Customer funding approved by the Bank. These models are built on the
behavioural characteristics of specific Customer segments, for the products and currencies in which those products are offered.
This means that the stability of current account balances is analysed separately for retail and corporate Customers, and separately
for savings accounts and term deposits. Based on the share of individual products and currencies within each business line as at
the reporting date, a weighted average is determined for the pool of funds received from non-bank Customers.
Inflows and outflows expected under agreements concluded by the Bank, presented as contractual liquidity gap*
31.12.2025
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
13,037,467
2,268,917
11,269,287
33,893,028
25,535,322
86,004,020
Debt securities
2,200,000
100,540
638,134
36,402,999
21,420,741
60,762,414
Interbank deposits
11,502,379
-
21,000
-
-
11,523,379
Cash and balances at Central
Bank
5,639,148
-
-
-
4,585,718
10,224,866
Fixed assets
-
-
-
-
947,435
947,435
Other assets
1,037,649
-
-
-
1,856,064
2,893,714
Off-balance sheet liabilities:
derivatives
10,638,265
4,238,727
13,703,989
15,872,275
8,124
44,461,379
Interest receivable
1,524,245
-
-
-
-
1,524,245
Liabilities
Retail customer deposits
41,994,782
9,758,733
7,161,048
12,832
-
58,927,395
Corporate customer deposits
73,521,563
5,298,627
2,767,097
153,488
20,649
81,761,423
Interbank deposits
1,767,598
5,000
30,000
-
-
1,802,598
Loans from financial
institutions
-
-
-
4,006,912
-
4,006,912
Liabilities under issued debt
securities
-
-
-
-
845,340
845,340
Equity and subordinated
liabilities
-
-
-
-
17,470,630
17,470,630
Other liabilities
5,203,355
-
-
-
-
5,203,355
Off-balance sheet liabilities:
derivatives
10,595,247
4,281,339
13,626,452
15,947,459
8,071,610
52,522,107
Interest payable
309,128
-
-
-
-
309,128
Total receivables
45,579,153
6,608,184
25,632,409
86,168,301
54,353,405
218,341,452
Total liabilities
133,391,673
19,343,699
23,584,597
20,120,690
26,408,229
222,848,888
Liquidity gap
(87,812,520)
(12,735,515)
2,047,812
66,047,612
27,945,175
(4,507,436)
*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 2025
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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:
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:
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.
Compared to 2024, the contractual gap up to 1 month increased, mainly due to the position in debt securities whose portfolio is
bigger with longer contractual maturities. As for customer deposits, the pool of these funds at contractual maturity up to 1 month
increased, but these are mainly funds in corporate customers’ current accounts. The stability of such funds tested at the Bank was
similar to 2024. The stability of customer funds is at 91% for corporate customers (due to a large share of funds in current accounts
at the turn of the year) and 97% for retail customers. As at 31 December 2025, off-balance sheet liabilities in derivatives amounted
to PLN 52 billion. Loans from financial institutions shown in the gap mature within 4 to 5 years. All the loans meet the MREL criteria.
The AT1 debt issued by the Bank in 2024 are bonds with no fixed maturity. The subordinated loans (own issues) mature beyond
14 years and represent slightly more than 19% of Equity and subordinated liabilities.
The Bank’s liquidity position continued to improve throughout the year 2025 and the share of retail customer funds increased. The
ongoing war in Ukraine had no impact on the Bank’s overall liquidity position. In 2025, the Monetary Policy Council cut the rates
several times, from a reference rate of 5.75% at the beginning of 2025 to 4% at the end of the year. Inflationary concerns, wage
pressures, as well as significant increases in energy prices continued, holding back demand for loans in the retail segment as well
as in the corporate segment.
At all times, the primary source of funding are funds raised from non-bank customers in view of a growing share of financing raised
from retail customers.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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55.7. Operational risk
The Bank’s operational risk is defined in accordance with the requirements of the Polish Financial Supervision Authority set out in
Recommendation M and the requirements of CRR3
3
, as the risk of incurring a loss due to inappropriate or unreliable internal
processes, human resources, systems or external factors. It comprises, without limitation, legal risk, model risk, and ICT
(information and communication technology) risk, but not strategic risk or reputation risk. The Bank identifies operational risk as
permanently significant risk. Operational risk is inherent in all banking operations. The Bank recognises operational risk events
and losses which may result from the materialisation of compliance risk.
4
Operational risk management strategy and policy
Operational risk management consists includes processes aimed at operational risk identification, analysis, monitoring, control,
reporting, and taking measures to mitigate such risk and resulting losses. Such measures take into account the structures,
processes, resources and scope of responsibilities for the said processes at various organisational levels, within the three lines of
defence.
The operational risk management strategy is described in the “Operational risk management strategy and internal control at BNP
Paribas Bank Polska S.A.”, which is reviewed annually and was approved by the Management Board and the Supervisory Board
of the Bank. The “Operational Risk Policy of BNP Paribas Bank Polska S.A.”, adopted by the Risk Management Committee of the
Bank, constitutes the organisational framework and standard 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 and applicable laws, including both national and Union laws.
The Bank’s operational risk management objectives include, in particular, compliance with high operational risk management
standards that guarantee security of customer deposits and the Bank’s equity, stability of the Bank’s financial performance, as well
as maintenance of the operational risk level within 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 and 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, 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 2025, focusing on geopolitical, regulatory, and operational factors
impacting the operational risk profile and on cybercrime threats which remain a key risk of increasing importance. Actions were
continued 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. The Bank mainly focused on
strengthening processes and tools for preventing and combating fraud against the Bank, including cybercrime. The measures
implemented were aimed, inter alia, at combating credit fraud and reducing unauthorised transactions, as well as continuing the
programme to raise awareness of internal 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.
3
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions
and investment firms and amending Regulation (EU) No 648/2012
4
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 2025
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In connection with 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.
External environment including geopolitical risk
To manage operational risk, the Bank continuously analyses risks arising as a consequence of war activity in Ukraine and rising
geopolitical tensions in the Middle East. Such events may cause increased cybercrime, physical attacks, and disruptions to global
supply chains and critical infrastructure, including payment and banking infrastructure. The Bank takes appropriate measures to
ensure security of the Bank’s employees and customers and to ensure business continuity and uninterrupted execution of
processes in its operations.
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, including ICT risk, 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
Bank’s Internal Services Division, 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
Bank’s operations, and is involved in judicial and administrative proceedings that affect the Bank. The ongoing monitoring of
compliance risk and the development and improvement of adequate techniques for its control are handled by the Compliance
Division.
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 understood as the identification of the main areas of the Bank’s exposure to adverse operational
events and the identification of the most serious potential operational events which may cause (or do cause) adverse effects for
the Bank, i.e. financial and non-financial losses. 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.”, approved by the Bank’s Management Board. This document describes the main principles, organisational
framework and standards for the functioning of the control environment at the Bank, complying with the PFSA requirements set
out 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 organisational 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.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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The internal control system at the Bank is based on the three lines of defence model, which consists of:
● 1st line of defence, which consists of organisational units in particular banking and support areas,
● 2nd line of defence, which consists of organisational units of the Risk Division responsible for risk management, including risk
measurement, monitoring, controlling and reporting, independently of the first line defence, the Finance Division Second Line
of Defence Office, the Legal Division, the Custody Services Department Chief Supervision Officer, the Brokerage Office
Regulation and Supervision Section, and the Compliance Division,
● 3rd line of defence, which is the Internal Audit Division.
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 organisation of the operational risk management system is reviewed as part of audits carried out 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.
Capital requirements due to operational risk
The Bank estimates regulatory capital for operational risk on a separate basis in accordance with CRR3 under the new
standardised method for operational risk.
56. 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 the calculation of capital ratios, following the
implementation of Regulation (EU) 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 (CRR), as amended by Regulation (EU) 2019/876 of the
European Parliament and of the Council of 20 May 2019 (CRR2) as regards the leverage ratio, the net stable funding ratio,
requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties,
exposures to collective investment undertakings, large exposures, reporting and disclosure requirements, and as amended among
others by Regulation (EU) 2024/1623 of the European Parliament and of the Council 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 One:
updated standard method for credit risk, standard method for counterparty credit risk, new basic method for credit value adjustment
(CVA) risk, new standard method for operational risk, and standard method for market risk.
In the completed implementation project, the Bank made the necessary alignments in the calculation of credit risk capital
requirement as presented below.
● For the new class of exposures secured by property mortgages and ADC exposures, the Bank:
o implemented new definitions, in particular the concept of income-producing real estate (IPRE exposure) and exposures
related to land acquisition, development and construction (ADC exposure);
o developed a data-collection process for identifying eligibility criteria in relation to mortgage collateral;
o updated rules for assigning risk weights and segmentation of individual exposures within the exposure class;
o adjusted the process for new real estate valuation rules and updated the internal model for their valuation.
● For off-balance sheet exposures, the Bank:
o implemented a process related to the identification of liabilities entered into with counterparties, according to new
definitions;
o updated segmentation of off-balance sheet exposures to new buckets and the credit conversion factors (CCF) assigned
to them.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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● For exposures to institutions, the Bank:
o implemented a new SCRA (Standardised Credit Risk Assessment Approach) in relation to institutions for which it does
not have information about the assigned external rating;
o updated rules for assigning risk weights for institutions with an external rating.
● For exposures associated with specialised lending, the Bank:
o implemented a process of segmenting exposures related to specialised lending into appropriate subcategories;
o adjusted the rules for assigning risk weights and developed a data-collection process for project information.
● For retail exposures, the Bank:
o identified transactor exposures, for which it assigns a preferential risk weight;
o adjusted the classification of retail exposures to the updated definition.
● For equity exposures, the Bank:
o took into account the new treatment of equity exposures in terms of assigning risk weights.
The Bank takes into account transitional provisions that allow the use of preferential approaches for 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 clarify various issues related to the changes resulting from CRR 3.
The Bank made changes to credit valuation adjustment (CVA) risk by implementing a new basic method which aligns the
calculation formula with the requirements under CRR3.
The Bank also made changes in operational risk, including implementing a new method for calculating operational risk requirement
and updating the operational risk management framework by making the necessary regulatory and definition adaptations to the
CRR3 requirements.
Due to the postponement of the implementation of the modified rules for determining capital requirements for the trading book, in
FRTB (Fundamental Review of Trading Book), the standard method will be applied for market risk, based on the rules in effect
before 1 January 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.
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 2025, the adjustment in common equity Tier 1 capital related to other intangible assets amounted to PLN
466,945 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 Polish 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 10 September 2025, the Bank received for information a request from the Polish Financial Supervision Authority regarding an
opinion by the Financial Stability Committee on the amendment of the Polish Financial Supervision Authority decision of 4 October
2016, as amended by the Polish Financial Supervision Authority decision of 6 December 2024. By its decision of 4 October 2016,
the Polish Financial Supervision Authority identified the Bank as an other systemically important institution. By its decision of 6
December 2024, the Polish Financial Supervision Authority amended the decision of 4 October 2016 and imposed on the Bank a
buffer of other 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. By its decision of 21 November 2025, the Polish Financial
Supervision Authority imposed on the Bank a buffer of other systemically important institution in an amount equivalent to 0.25% of
the total risk exposure amount calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013.
The Polish Financial Supervision Authority, by letter dated 16 December 2024, announced that the Bank’s sensitivity to the possible
materialisation of stress scenarios affecting the level of own funds and risk exposures was evaluated as low in the supervisory
assessment process. 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 Two offset by the capital buffer
requirement was set at 0.00 p.p. on a separate and on a consolidated basis.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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The Bank-specific countercyclical buffer rate, determined in accordance with the provisions of the Act of 5 August 2015 on
macroprudential 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 1% at 31
December 2025. The ratio was affected by the countercyclical buffer rate for credit exposures in the territory of the Republic of
Poland that applied as at 31 December 2025 and which increased from 0% to 1% under the Regulation of the Minister of Finance
of 18 September 2024.
By 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,
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., Paris.
According to the Resolution of the Annual General Meeting of the Bank of 15 April 2025, the Bank’s profit for 2024 in the amount
of PLN 2,320,798 thousand was allocated to a dividend payment in the amount of PLN 1,162,341 thousand, reserves in the amount
of PLN 658,457 thousand, with PLN 500,000 thousand allocated to retained earnings.
The Polish Financial Supervision Authority approved the classification of capital bonds by the Bank as Tier 2 instruments, including
by decision of 11 August 2025 concerning series B capital bonds issued by the Bank on 6 June 2025 in the total nominal amount
of EUR 160,000,000 and by decision of 21 November 2025 concerning series C capital bonds issued by the Bank on 10 October
2025 in the total nominal amount of EUR 630,000,000.
On 12 August 2025, the Polish Financial Supervision Authority approved the repayment by the Bank of Tier 2 instruments before
contractual maturity in the form of a subordinated loan of 10 December 2018 in the total nominal amount of EUR 40,000,000, a
subordinated loan of 15 November 2012, as amended by an annex of 20 November 2017, with a total nominal amount of CHF
60,000,000, and a subordinated loan of 15 November 2012, as amended by an annex of 20 November 2017, in the total nominal
amount of EUR 60,000,000. The loans subject to prudential amortisation were repaid in September 2025.
On 7 November 2025, the Polish Financial Supervision Authority approved the repayment by the Bank of Tier 2 instruments before
contractual maturity in the form of a subordinated loan of 12 September 2014, as amended by an annex of 13 September 2019,
in the total nominal amount of CHF 90,000,000. On 1 December 2025, the Polish Financial Supervision Authority approved the
repayment by the Bank of Tier 2 instruments before contractual maturity in the form of a subordinated loan of 7 December 2020 in
the total nominal amount of PLN 2,300,000,000.
The common equity Tier 1, Tier 1, and Total Capital Requirement ratios on a separate basis were above the requirements for the
Bank as at 31 December 2025.
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.
31.12.2025
Minimum supervisory separate capital
adequacy ratios of the Bank
Separate capital adequacy ratios of the
Bank
CET 1
8.25%
13.06%
Tier 1
9.75%
13.70%
Total Capital Ratio
11.75%
17.00%
31.12.2024
CET 1
7.50%
13.38%
Tier 1
9.00%
14.10%
Total Capital Ratio
11.00%
17.58%
Minimum requirement for 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 mandatory
restructuring. The Bank’s preferred tool for mandatory restructuring is the open bank bail-in tool.
On 8 May 2025, the Bank received an updated letter from the BFG regarding the MREL requirement. The MREL requirement for
the Bank was set on the separate basis at 15.93% of the total risk exposure amount (“TREA”) and 5.91% of the total exposure
measure (“TEM”). This requirement is binding from 8 May 2025.
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MREL requirement applies on the separate basis.
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 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.
As at 31 December 2025, the Bank meets the MREL-TREA and MREL-TEM requirements.
31.12.2025
Minimum
separate
regulatory
requirements for
the Bank
Minimum
separate
regulatory MREL
ratios for the
Bank increased
by the combined
buffer
requirement
Bank’s separate
requirement
ratios
MREL-TREA
15.93%
19.68%
21.73%
MREL-TEM
5.91%
5.91%
11.34%
31.12.2024
Minimum
separate
regulatory
requirements for
the Bank
Minimum
separate
regulatory 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%
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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57. MAJOR EVENTS IN BNP PARIBAS BANK POLSKA S.A.
IN 2025
14.03.2025
Individual recommendation of the Polish Financial Supervision Authority on the criteria of dividend
payment up to 50% of 2024 net profit. In view of the strong quality of the Bank’s loan portfolio, the
possible dividend rate was raised to 75%.
27.03.2025
Information on the annual contribution the bank resolution fund at PLN 156,118 thousand for 2025
set by the Bank Guarantee Fund for BNP Paribas Bank Polska S.A.
7.04.2025
Issue of series M shares under a conditional share capital increase and change of the share
capital of BNP Paribas Bank Polska S.A.
According to a statement from the Central Securities Depository of Poland (KDPW) and a resolution of
the Management Board of the Warsaw Stock Exchange (WSE), as per the Bank’s current report no.
9/2025, the following were registered in KDPW and admitted to trading by WSE on 7 April 2025:
- 20,223 series M ordinary bearer shares of the Bank with a nominal value of PLN 1 per share (Series M
Shares), which were recorded in the securities accounts of their holders.
The Series M Shares were issued under a conditional share capital increase of the Bank pursuant to
Resolution No. 5 of the Extraordinary General Meeting of the Bank of 31 January 2020 as amended by
Resolution No. 37 of the Annual General Meeting of the Bank of 29 June 2020. The Series M Shares
were taken up in performance of rights attached to previously acquired individual series A5 subscription
warrants, each of which conferred the right to take up one Series M Share.
According to the second sentence of Article 451 (2) of the Commercial Companies Code, the award of
the Series M Shares took effect when the Shares were recorded in the securities accounts of their
holders.
As a result, under Article 451 (2) in conjunction with Article 452 (1) of the Commercial Companies Code,
rights were acquired in 20,223 Series M Shares with a nominal value of PLN 20,223 and the Bank’s
share capital was increased from PLN 147,799,870 to PLN 147,820,093, divided into 147,820,093
shares with a nominal value of PLN 1 per share.
8.04.2025
Issue of series N shares under a conditional share capital increase and change of the share
capital of BNP Paribas Bank Polska S.A.
According to a statement from the Central Securities Depository of Poland (KDPW) and a resolution of
the Management Board of the Warsaw Stock Exchange (WSE), as per the Bank’s current report no.
11/2025, the following were registered in KDPW and admitted to trading by WSE on 8 April 2025:
- 60,398 series N ordinary bearer shares of the Bank with a nominal value of PLN 1 per share (Series N
Shares), which were recorded in the securities accounts of their holders.
The Series N Shares were issued under a conditional share capital increase of the Bank pursuant to
Resolution No. 39 of the Extraordinary General Meeting of the Bank of 27 June 2022. The Series N
Shares were taken up in performance of rights attached to previously acquired individual series B2
subscription warrants, each of which conferred the right to take up one Series N Share.
According to the second sentence of Article 451 (2) of the Commercial Companies Code, the award of
the Series N Shares took effect when the Shares were recorded in the securities accounts of their
holders.
As a result, under Article 451 (2) in conjunction with Article 452 (1) of the Commercial Companies Code,
rights were acquired in 60,398 Series N Shares with a nominal value of PLN 60,398 and the Bank’s
share capital was increased from PLN 147,820,093 to PLN 147,880,491, divided into 147,880,491
shares with a nominal value of PLN 1 per share.
15.04.2025
Annual General Meeting of BNP Paribas Bank Polska S.A.
The AGM passed a resolution to pay a dividend for 2024 in the amount of PLN 1,162,340,659.26 i.e. PLN
7.86 per share. The dividend covers all of the Bank’s 147,880,491 outstanding shares.
Dividend record date: 22 April 2025, dividend payment date: 9 May 2025.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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29.04.2025
Entry in the National Court Register of amendments to the Articles of Association of BNP Paribas
Bank Polska S.A.: increase of the Bank’s share capital to PLN 147,880,491 as a result of acquisition
of series M shares and series N shares under Article 29a(2)(d) and Article 29b(2)(a) of the Articles of
Association of BNP Paribas Bank Polska S.A.
9.05.2025
Minimum own funds and eligible liabilities requirement (MREL) set for BNP Paribas Bank Polska
S.A.
The MREL requirement for the Bank on a separate basis was set at 15.93% of the Total Risk Exposure
Amount (TREA) and 5.91% of the Total Exposure Measure (TEM). The Bank was obliged to meet the
requirement immediately upon receipt of the update. As at the date of receipt of the BFG update, the Bank
met the MREL requirement set therein.
2.06.2025
Issue of Tier 2 bonds
BNP Paribas S.A., Paris, accepted the offer to acquire the capital bonds referred to in Article 27a of the Act
of 15 January 2015 on Bonds (the “Bonds”), presented by BNP Paribas Bank Polska S.A.
The total nominal value of the Bonds is EUR 160,000,000, and the nominal value of a single Bond is EUR
100,000. The maturity date of the Bonds is 6 June 2040.
The interest rate on the Bonds was set based on the compounded daily €STR rate plus a margin. The
interest rate was determined on market terms.
The terms of the Bond issue provide for the possibility of early redemption by the Bank after 10 years from
the issue date, subject to prior approval from the Polish Financial Supervision Authority.
On 11 August 2025, the Polish Financial Supervision Authority approved the classification of these capital
Bonds as Tier 2 capital instruments.
The funds raised from the issue of the Bonds replaced funds originating from subordinated loans in the
amounts of EUR 60,000,000, CHF 60,000,000, and EUR 40,000,000 (as previously disclosed by the Bank
in current reports no. 24/2017 of 20 November 2017 and 76/2018 of 10 December 2018). The loans were
subject to prudential amortisation and were repaid in September 2025.
10.09.2025
Fitch Ratings rating action – change of the Bank’s Long-Term Issuer Default Rating (“IDR”) outlook
from “Stable” to “Negative” and confirmation of the Long-Term IDR and Shareholder Support
Rating (“SSR”) at “A+” and “a+” respectively.
The change in the Bank’s rating outlook follows revision of Poland’s local-currency Long-Term Issuer
Default Rating outlook from “Stable” to “Negative.” The Bank’s ratings are capped at a level two notches
above Poland’s sovereign rating (“A-/Negative”) due to the incorporation of country risk, which, in the
Agency’s view, may limit the Bank’s ability to obtain support from its parent entity in the event of a crisis
situation.
Full list of rating actions communicated by Fitch:
• Long-Term Issuer Default Rating (LT IDR) was confirmed as “A+”, outlook negative,
• Short-Term Issuer Default Rating (ST IDR) was confirmed as “F1”,
• National Long-Term Rating (Natl LT) was confirmed as “AAA(pol)”, outlook stable,
• National Short-Term Rating (Natl ST) was confirmed as “F1+(pol)”,
• Viability Rating (VR) was confirmed as “bbb-”,
• Shareholder Support Rating (SSR) was confirmed as “a+”.
12.09.2025
Request submitted by the Polish Financial Supervision Authority for the Financial Stability
Committee to provide an opinion on determining the level of the Other Systemically Important
Institution (O-SII) buffer for BNP Paribas Bank Polska, whose appropriate level—according to the
principles arising from the methodology established by the Polish Financial Supervision Authority —should
be set at 0.25% of the total risk exposure amount.
The current O-SII buffer for the Bank is set at a level equivalent to 0.50% of the total risk exposure amount.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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8.10.2025
Issue of Tier 2 Capital Bonds
BNP Paribas S.A., Paris, accepted the offer submitted by BNP Paribas Bank Polska S.A. to acquire capital
bonds referred to in Article 27a of the Act of 15 January 2015 on Bonds (the “Bonds”).
The total nominal value of the Bonds is EUR 630,000,000, and the nominal value of a single Bond is EUR
100,000. The maturity date of the Bonds is 10 October 2040.
The interest rate on the Bonds was set on the basis of the compounded daily €STR rate plus a margin. The
interest rate was determined on market terms.
The terms of the Bond issuance provide for the possibility of early redemption by the Bank after 10 years
from the issue date, subject to prior approval from the Polish Financial Supervision Authority (“KNF”).
On 24 November 2025, the Bank received a KNF decision dated 21 November 2025 granting approval for
the classification of the capital bonds with a total value of EUR 630,000,000, issued by the Bank on 10
October 2025, as Tier 2 capital instruments.
The Bank’s intention is for the funds raised from the issuance of the Bonds to replace funds obtained by
the Bank from subordinated loans in the amounts of CHF 90,000,000 and PLN 2,300,000,000, as disclosed
in current reports no. 25/2019 of 13 September 2019 and 38/2020 of 7 December 2020. The first of these
loans was subject to prudential amortisation and, following KNF approval, was repaid in November 2025.
The second loan, following KNF approval, was repaid in December 2025.
The Bank’s objective is to maintain the level of Tier 2 capital and improve the maturity structure of the
instruments that comprise it.
27.10.2025
Fitch Rating rating action – upgrade of the Bank’s Viability Rating (VR) to “bbb” from “bbb-” and
confirmation of the Long-Term Issuer Default Rating (LT IDR) as “A+”, outlook negative, and Shareholder
Support Rating (SSR) as “a+”.
The upgrade of the Viability Rating (VR) is the result of a significant and lasting reduction in the legal risk
associated with CHF mortgage loans, which no longer has a negative impact on the Bank’s risk profile and
profitability assessment.
Full list of rating actions communicated by Fitch:
• Long-Term Issuer Default Rating (LT IDR) was confirmed as “A+”, outlook negative,
• Short-Term Issuer Default Rating (ST IDR) was confirmed as “F1”,
• National Long-Term Rating (Natl LT) was confirmed as “AAA(pol)”, outlook stable,
• National Short-Term Rating (Natl ST) was confirmed as “F1+(pol)”,
• Viability Rating (VR) was upgraded to “bbb”,
• Shareholder Support Rating (SSR) was confirmed as “a+”.
27.11.2025
Extraordinary General Meeting of BNP Paribas Bank Polska S.A.
Resolutions amending the Bank’s Articles of Association and approving the consolidated text.
10.12.2025
BNP Paribas Bank Polska S.A. Group’s Strategy 2026-2030
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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16.12.2025
Information on the change in the share of total vote in BNP Paribas Bank Polska S.A. – as a result
of the settlement of block trades concluded on 12 December 2025 in connection with the completion of the
accelerated bookbuilding covering 9,214,025 shares of the Bank (“Settlement”), the share of BNP Paribas
S.A. in the total number of votes at the Bank’s General Meeting decreased by approximately 6.23%.
As a result of the Settlement, on the date of notification, BNP Paribas S.A. directly holds 75,420,141 shares
of the Bank, representing approximately 51.00% of the Bank’s share capital and in the total number of
votes at the General Meeting, and together with its subsidiary BNP Paribas Fortis SA/NV holds a total of
110,910,367 shares of the Bank, representing approximately 75.00% of the Bank’s share capital and in the
total number of votes at the General Meeting. This is consistent with the previously announced intention to
increase the number of the Bank’s shares in free float to at least 25%.
Before the Settlement, BNP Paribas SA directly held 84,634,166 shares of the Bank, representing
approximately 57.23% of the Bank’s share capital and the total number of votes at the General Meeting,
and together with its subsidiary BNP Paribas Fortis SA/NV held a total of 120,124,392 shares of the Bank,
representing approximately 81.23% of the Bank’s share capital and in the total number of votes at the
General Meeting.
Furthermore, BNP Paribas SA reported that the above transactions were settled at a price of PLN 120 per
share (resulting in a total transaction value of approximately PLN 1.1 billion / approximately EUR 261
million). The shares were offered through an accelerated bookbuilding process addressed exclusively to
institutional investors. BNP Paribas S.A. has committed to a 180-day lock-up on its remaining shares in the
Bank, with the possibility of waiver by the investment firms acting as intermediaries in the transaction.
Changes to the Supervisory Board and the Management Board of the Bank in 2025 are described in Note 1 General Information
about the BNP Paribas Bank Polska S.A.
58. SUBSEQUENT EVENTS
Changes to the Management Board of the Bank in 2025 and until the date of signing of these financial statements are described
in Note 1 General Information about the BNP Paribas Bank Polska S.A.
.
SEPARATE FINANCIAL STATEMENTS OF BNP PARIBAS BANK POLSKA S.A. for the year ended 31 December 2025
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SIGNATURES OF THE MANAGEMENT BOARD MEMBERS
OF BNP PARIBAS BANK POLSKA S.A.
4.03.2026
Przemysław Gdański
President of the Management Board
signed with a qualified electronic signature
4.03.2026
Małgorzata Dąbrowska
Vice-President of the Management
Board
signed with a qualified electronic signature
4.03.2026
Wojciech Kembłowski
Vice-President of the Management
Board
signed with a qualified electronic signature
4.03.2026
Piotr Konieczny
Vice-President of the Management
Board
signed with a qualified electronic signature
4.03.2026
Magdalena Nowicka
Vice-President of the Management
Board
signed with a qualified electronic signature
4.03.2026
Volodymyr Radin
Vice-President of the Management
Board
signed with a qualified electronic signature
4.03.2026
Natalie Yacoubian
Vice-President of the Management
Board
signed with a qualified electronic signature
Warsaw, 4 March 2026