43. Contingent liabilities and off-balance sheet liabilities received and granted
Annual Report
2019
2019
Accounting policies
Upon initial recognition financial guarantee agreements are stated at fair value. In subsequent periods, as at the balance sheet date, financial guarantees are measured at the higher of:
- allowances for expected credit losses; or
- the amount of commission recognized initially, less accumulated amortization in accordance with IFRS 15.
Financial information
Securities programmes covered with underwriting agreements (the Group’s maximum commitment to take up securities)
| Issuer of underwritten securities | Type of underwritten securities |
Maximum commitment to take up securities |
Contract expiry date |
| As at 31 December 2019 | |||
| Company C | corporate bonds | 36 | 31.12.2022 |
| Total | 36 |
| Issuer of underwritten securities |
Type of underwritten securities |
Maximum commitment to take up securities |
Contract expiry date |
| As at 31 December 2018 | |||
| Company A | corporate bonds | 1 266 | 31.12.2020 |
| Company B | corporate bonds | 708 | 31.07.2020 |
| Company C | corporate bonds | 47 | 31.12.2022 |
| Total | 2 021 |
All contracts relate to the Agreement for Organization, Conducting and Servicing of the Bond Issuance Programme. All securities of the Group under the underwriting programme have unlimited transferability, are not listed on the stock exchange and are not traded on a regulated OTC market.
Contractual commitments
| VALUE OF CONTRACTUAL COMMITMENTS CONCERNING: | 31.12.2019 | 31.12.2018 |
|---|---|---|
| intangible assets | 28 | 43 |
| property, plant and equipment | 29 | 51 |
| Total | 57 | 94 |
Financial liabilities and guarantees granted
| FINANCING AND GUARANTEE LIABILITIES GRANTED AS AT 31.12.2019 | Liabilities granted at nominal amount |
Provisions for liabilities granted under IFRS 9 |
Financing and guarantee liabilities granted, net |
|---|---|---|---|
| Financing liabilities granted: | |||
| Credit lines and limits | 51 360 | (196) | 51 164 |
| housing | 3 329 | (30) | 3 299 |
| business | 38 265 | (119) | 38 146 |
| consumer | 9 766 | (47) | 9 719 |
| Other | 4 008 | (13) | 3 995 |
| Total | 55 368 | (209) | 55 159 |
| of which irrevocable loan commitments | 22 756 | (87) | 22 669 |
| Guarantees and pledges granted: | |||
| Guarantees granted in domestic and foreign trading | 10 137 | (57) | 10 080 |
| to financial entities | 595 | – | 595 |
| to non-financial entities | 9 383 | (57) | 9 326 |
| to public sector | 159 | – | 159 |
| Guarantees and pledges granted – domestic corporate bonds | 36 | – | 36 |
| to non-financial entities | 36 | – | 36 |
| Letters of credit granted | 1 201 | (3) | 1 198 |
| to non-financial entities | 1 201 | (3) | 1 198 |
| Guarantees and warranties granted – payment guarantee for financial entities | 35 | – | 35 |
| Guarantees and pledges granted – domestic municipal bonds | 101 | – | 101 |
| Total | 11 510 | (60) | 11 450 |
| of which irrevocable loan commitments | 8 147 | (56) | 8 091 |
| of which performance guarantees granted | 2 560 | (14) | 2 546 |
| Total | 66 878 | (269) | 66 609 |
| FINANCIAL AND GUARANTEE COMMITMENTS GRANTED AS AT 31.12.2018 | Liabilities granted at nominal amount |
Provisions for liabilities granted under IFRS 9 |
Financing and guarantee liabilities granted, net |
|---|---|---|---|
| Financing liabilities granted: | |||
| Credit lines and limits | 45 867 | (166) | 45 701 |
| housing | 4 275 | (35) | 4 240 |
| business | 32 618 | (96) | 32 522 |
| consumer | 8 974 | (35) | 8 939 |
| Other | 4 010 | (11) | 3 999 |
| Total | 49 877 | (177) | 49 700 |
| of which irrevocable loan commitments | 23 378 | (67) | 23 311 |
| Guarantees and pledges granted: | |||
| Guarantees granted in domestic and foreign trading | 6 515 | (46) | 6 469 |
| to financial entities | 433 | (1) | 432 |
| to non-financial entities | 6 069 | (44) | 6 025 |
| to public sector | 13 | (1) | 12 |
| Guarantees and pledges granted – domestic corporate bonds | 2 021 | (2) | 2 019 |
| to non-financial entities | 2 021 | (2) | 2 019 |
| Letters of credit granted | 1 207 | (2) | 1 205 |
| to non-financial entities | 1 205 | (2) | 1 203 |
| to public sector | 2 | – | 2 |
| Guarantees and warranties granted – payment guarantee for financial entities |
4 | – | 4 |
| Guarantees and pledges granted – domestic municipal bonds | 188 | – | 188 |
| Total | 9 935 | (50) | 9 885 |
| of which irrevocable loan commitments | 6 516 | (46) | 6 470 |
| of which performance guarantees granted | 2 418 | (19) | 2 399 |
| Total financial and guarantee commitments | 59 812 | (227) | 59 585 |
Liabilities granted by maturity
| LIABILITIES GRANTED BY MATURITY AS AT 31.12.2019 | up to 1 month | 1 to 3 months | 3 months to 1 year | 1 to 5 years | over 5 years | Total |
| Liabilities granted at nominal amount | ||||||
| Liabilities granted – financing | 15 936 | 3 567 | 15 086 | 12 000 | 8 779 | 55 368 |
| Liabilities granted – guarantees and pledges | 161 | 1 653 | 5 185 | 3 176 | 1 335 | 11 510 |
| Total | 16 097 | 5 220 | 20 271 | 15 176 | 10 114 | 66 878 |
| LIABILITIES GRANTED BY MATURITY AS AT 31.12.2018 | up to 1 month | 1 to 3 months | 3 months to 1 year |
1 to 5 years | over 5 years | Total |
| Liabilities granted at nominal amount | ||||||
| Liabilities granted – financing | 12 626 | 2 874 | 13 293 | 12 026 | 9 058 | 49 877 |
| Liabilities granted – guarantees and pledges | 290 | 693 | 4 823 | 3 313 | 816 | 9 935 |
| Total | 12 916 | 3 567 | 18 116 | 15 339 | 9 874 | 59 812 |
| FINANCING AND GUARANTEE LIABILITIES GRANTED AS AT 31.12.2019 | Nominal value of liabilities (stage 1) |
Allowances for expected credit losses (stage 1) |
Nominal value of liabilities (stage 2) |
Allowances for expected credit losses (stage 2) |
Nominal value of liabilities (stage 3) |
Provision for expected credit losses (stage 3) |
Total nominal amount |
Total provision | Total net amount |
| Financing liabilities granted: | |||||||||
| Credit lines and limits | 48 365 | (91) | 2 812 | (77) | 183 | (28) | 51 360 | (196) | 51 164 |
| housing | 3 013 | (16) | 309 | (12) | 7 | (2) | 3 329 | (30) | 3 299 |
| business | 36 942 | (61) | 1 155 | (35) | 168 | (23) | 38 265 | (119) | 38 146 |
| consumer | 8 410 | (14) | 1 348 | (30) | 8 | (3) | 9 766 | (47) | 9 719 |
| Other | 4 005 | (13) | 3 | – | – | – | 4 008 | (13) | 3 995 |
| Total | 52 370 | (104) | 2 815 | (77) | 183 | (28) | 55 368 | (209) | 55 159 |
| of which irrevocable loan commitments | 20 684 | (29) | 1,974 | (47) | 98 | (11) | 22 756 | (87) | 22 669 |
| of which: purchased or originated credit impaired off-balance sheet liabilities – POCI | – | – | – | – | 67 | – | 67 | – | 67 |
| Guarantees and pledges granted: | |||||||||
| Guarantees granted in domestic and foreign trading | 9 345 | (6) | 501 | (11) | 291 | (40) | 10 137 | (57) | 10 080 |
| to financial entities | 595 | – | – | – | – | – | 595 | – | 595 |
| to non financial entities | 8 591 | (6) | 501 | (11) | 291 | (40) | 9 383 | (57) | 9 326 |
| to public sector | 159 | – | – | – | – | – | 159 | – | 159 |
| Guarantees and pledges granted – domestic corporate bonds | 36 | – | – | – | – | – | 36 | – | 36 |
| to non-financial entities | 36 | – | – | – | – | 36 | – | 36 | |
| Letters of credit granted | 1 188 | (1) | – | – | 13 | (2) | 1 201 | (3) | 1 198 |
| to non-financial entities | 1 188 | (1) | 13 | (2) | 1 201 | (3) | 1 198 | ||
| Guarantees and warranties granted – payment guarantee for financial entities |
35 | – | – | – | – | – | 35 | – | 35 |
| Guarantees and pledges granted – domestic municipal bonds | 101 | – | – | – | – | – | 101 | – | 101 |
| Total | 10 705 | (7) | 501 | (11) | 304 | (42) | 11 510 | (60) | 11 450 |
| of which: irrevocable loan commitments | 7 355 | (5) | 501 | (11) | 291 | (40) | 8 147 | (56) | 8 091 |
| of which: performance guarantees granted | 2 021 | (1) | 390 | (1) | 149 | (12) | 2 560 | (14) | 2 546 |
| FINANCIAL AND GUARANTEE COMMITMENTS GRANTED AS AT 31.12.2018 | Nominal value of liabilities (stage 1) |
Allowances for expected credit losses (stage 1) |
Nominal value of liabilities (stage 2) |
Allowances for expected credit losses (stage 2) |
Nominal value of liabilities (stage 3) |
Provision for expected credit losses (stage 3) |
Total nominal amount |
Total provision | Total net amount |
| Financing liabilities granted: | |||||||||
| Credit lines and limits | 42 649 | (75) | 3,025 | (77) | 193 | (14) | 45 867 | (166) | 45 701 |
| housing | 3 813 | (14) | 454 | (18) | 8 | (3) | 4 275 | (35) | 4 240 |
| business | 31 019 | (50) | 1,422 | (38) | 177 | (8) | 32 618 | (96) | 32 522 |
| consumer | 7 817 | (11) | 1,149 | (21) | 8 | (3) | 8 974 | (35) | 8 939 |
| Other | 4 010 | (11) | – | – | – | – | 4 010 | (11) | 3 999 |
| Total | 46 659 | (86) | 3 025 | (77) | 193 | (14) | 49 877 | (177) | 49 700 |
| of which: irrevocable loan commitments | 21 554 | (28) | 1 729 | (35) | 95 | (4) | 23 378 | (67) | 23 311 |
| of which: purchased or originated credit-impaired off-balance sheet liabilities – POCI |
– | – | – | – | 80 | – | 80 | – | 80 |
| Guarantees and pledges granted: | |||||||||
| Guarantees granted in domestic and foreign trading | 6 134 | (10) | 235 | (9) | 146 | (27) | 6 515 | (46) | 6 469 |
| to financial entities | 433 | (1) | – | – | – | – | 433 | (1) | 432 |
| to non-financial entities | 5 688 | (8) | 235 | (9) | 146 | (27) | 6 069 | (44) | 6 025 |
| to public sector | 13 | (1) | – | – | – | – | 13 | (1) | 12 |
| Guarantees and pledges granted – domestic corporate bonds | 2 021 | (2) | – | – | – | – | 2 021 | (2) | 2 019 |
| to non-financial entities | 2 021 | (2) | – | – | – | – | 2 021 | (2) | 2 019 |
| Letters of credit granted | 1 206 | (1) | – | – | 1 | (1) | 1 207 | (2) | 1 205 |
| to non-financial entities | 1 204 | (1) | – | – | 1 | (1) | 1 205 | (2) | 1 203 |
| to public sector | 2 | – | – | – | – | – | 2 | – | 2 |
| Guarantees and warranties granted – payment guarantee for financial entities | 4 | – | – | – | – | – | 4 | – | 4 |
| Guarantees and pledges granted – domestic municipal bonds | 188 | – | – | – | – | – | 188 | – | 188 |
| Total | 9 553 | (13) | 235 | (9) | 147 | (28) | 9 935 | (50) | 9 885 |
| of which irrevocable loan commitments | 6 135 | (10) | 235 | (9) | 146 | (27) | 6 516 | (46) | 6 470 |
| of which performance guarantees granted | 2 216 | (5) | 130 | (5) | 72 | (9) | 2 418 | (19) | 2 399 |
| FINANCING AND GUARANTEE LIABILITIES GRANTED – MOVEMENTS BETWEEN IMPAIRMENT STAGES AS AT 31.12.2019 |
Gross amount | Total | ||||||
| AMOUNTS NOT SUBJECT TO TRANSFER IN A GIVEN PERIOD |
Transfer between stage 1 and stage 2 | Transfers between stage 2 and stage 3 | Transfer between stage 1 and stage 3 | |||||
| from stage 1 to stage 2 | from stage 2 to stage 1 |
from stage 2 to stage 3 |
from stage 3 to stage 2 |
from stage 1 to stage 3 |
from stage 3 to stage 1 |
|||
| Financing liabilities granted: | ||||||||
| Credit lines and limits | 49 380 | 1 045 | 850 | 20 | 3 | 60 | 2 | 51 360 |
| Other | 4 008 | – | – | – | – | – | – | 4 008 |
| Total | 53 388 | 1 045 | 850 | 20 | 3 | 60 | 2 | 55 368 |
| Guarantees and pledges granted: | ||||||||
| Guarantees granted in domestic and foreign trading | 9 666 | 309 | 21 | 3 | – | 138 | – | 10 137 |
| Guarantees and pledges granted – domestic corporate bonds | 36 | – | – | – | – | – | – | 36 |
| Letters of credit granted | 1 201 | – | – | – | – | – | – | 1 201 |
| Guarantees and warranties granted – payment guarantee for financial entities |
35 | – | – | – | – | – | – | 35 |
| Guarantees and pledges granted – domestic municipal bonds | 101 | – | – | – | – | – | – | 101 |
| Total | 11 039 | 309 | 21 | 3 | – | 138 | – | 11 510 |
| Provisions | ||||||||
| FINANCING AND GUARANTEE LIABILITIES GRANTED – MOVEMENTS BETWEEN IMPAIRMENT STAGES AS AT 31.12.2019 |
AMOUNTS NOT SUBJECT TO TRANSFER IN A GIVEN PERIOD |
Transfer between stage 1 and stage 2 |
Transfers between stage 2 and stage 3 | Transfer between stage 1 and stage 3 | Total | |||
| from stage 1 to stage 2 |
from stage 2 to stage 1 |
from stage 2 to stage 3 |
from stage 3 to stage 2 |
from stage 1 to stage 3 |
from stage 3 to stage 1 |
|||
| Financing liabilities granted: | ||||||||
| Credit lines and limits | (146) | (29) | (1) | (4) | – | (16) | – | (196) |
| Other | (13) | – | – | – | – | – | – | (13) |
| Total | (159) | (29) | (1) | (4) | – | (16) | – | (209) |
| Guarantees and pledges granted: | ||||||||
| Guarantees granted in domestic and foreign trading | (30) | (3) | – | – | – | (24) | – | (57) |
| Letters of credit granted | (3) | – | – | – | – | – | – | (3) |
| Total | (33) | (3) | – | – | – | (24) | – | (60) |
| FINANCING AND GUARANTEE LIABILITIES GRANTED – MOVEMENTS BETWEEN IMPAIRMENT STAGES AS AT 31.12.2018 |
Gross amount | Total | ||||||
| AMOUNTS NOT SUBJECT TO TRANSFER IN A GIVEN PERIOD |
Transfer between stage 1 and stage 2 | Transfers between stage 2 and stage 3 | Transfer between stage 1 and stage 3 | |||||
| from stage 1 to stage 2 |
from stage 2 to stage 1 |
from stage 2 to stage 3 |
from stage 3 to stage 2 |
from stage 1 to stage 3 |
from stage 3 to stage 1 |
|||
| Financing liabilities granted: | ||||||||
| Credit lines and limits | 43 389 | 1 820 | 585 | 6 | 4 | 60 | 3 | 45 867 |
| Other | 4 010 | – | – | – | – | – | – | 4 010 |
| Total | 47 399 | 1 820 | 585 | 6 | 4 | 60 | 3 | 49 877 |
| Guarantees and pledges granted: | ||||||||
| Guarantees granted in domestic and foreign trading | 6 141 | 180 | 163 | 3 | – | 28 | – | 6 515 |
| Guarantees and pledges granted – domestic corporate bonds | 2 021 | – | – | – | – | – | – | 2 021 |
| Letters of credit granted | 1 204 | 1 | 1 | 1 | – | – | – | 1 207 |
| Guarantees and warranties granted – payment guarantee for financial entities | 4 | – | – | – | – | – | – | 4 |
| Guarantees and pledges granted – domestic municipal bonds | 188 | – | – | – | – | – | – | 188 |
| Total | 9 558 | 181 | 164 | 4 | – | 28 | – | 9 935 |
| FINANCING AND GUARANTEE LIABILITIES GRANTED – MOVEMENTS BETWEEN IMPAIRMENT STAGES AS AT 31.12.2018 |
Provisions | Total | ||||||
| AMOUNTS NOT SUBJECT TO TRANSFER IN A GIVEN PERIOD |
Transfer between stage 1 and stage 2 | Transfers between stage 2 and stage 3 |
Transfers between stage 3 and stage 1 |
|||||
| from stage 1 to stage 2 |
from stage 2 to stage 1 |
from stage 2 to stage 3 |
from stage 3 to stage 2 |
from stage 1 to stage 3 |
from stage 3 to stage 1 |
|||
| Financing liabilities granted: | ||||||||
| Credit lines and limits | (100) | (59) | (4) | – | – | (3) | – | (166) |
| Other | (11) | – | – | – | – | – | – | (11) |
| Total | (111) | (59) | (4) | – | – | (3) | – | (177) |
| Guarantees and pledges granted: | ||||||||
| Guarantees granted in domestic and foreign trading | (34) | (7) | – | – | – | (5) | – | (46) |
| Guarantees and pledges granted – domestic corporate bonds | (2) | – | – | – | – | – | – | (2) |
| Letters of credit granted | (2) | – | – | – | – | – | – | (2) |
| Total | (38) | (7) | – | – | – | (5) | – | (50) |
Off-balance sheet liabilities received
| OFF-BALANCE SHEET LIABILITIES RECEIVED BY NOMINAL VALUE | 31.12.2019 | 31.12.2018 |
|---|---|---|
| Financing | 119 | 90 |
| Guarantees | 2 478 | 1 825 |
| Total | 2 597 | 1 915 |
The increase in off-balance sheet liabilities received as guarantees compared to 31 December 2018 was caused mainly by an increase in the limit for guarantees under the de minimis guarantee line portfolio agreement.
Right to sell or pledge a collateral established for the Group
As at 31 December 2019, and as at 31 December 2018 there were no collaterals established for the benefit of the Bank’s Group, which the Group was entitled to sell or pledge, if all obligations of the collateral holder were performed.