24. Securities
Accounting policies
Securities are classified in accordance with the principles of business model determination and an evaluation of the characteristics of contractual cash flows referred to in note “Description of significant accounting policies”.
The item “Securities” also includes an adjustment relating to fair value hedge accounting for securities representing hedged items (note “Hedge Accounting”).
Annual Report
2019
2019
Financial information
| SECURITIES | 31.12.2019 | 31.12.2018 |
|---|---|---|
| Securities (excluding adjustments relating to fair value hedge accounting) | 80 572 | 64 114 |
| Adjustment relating to fair value hedge accounting | 1 | – |
| Total | 80 573 | 64 114 |
| SECURITIES (excluding adjustments relating to fair value hedge accounting) | 31.12.2019 | 31.12.2018 |
|---|---|---|
| held for trading | 1 112 | 235 |
| not held for trading, measured at fair value through profit or loss | 2 199 | 2 848 |
| measured at fair value through OCI | 63 807 | 52 558 |
| measured at amortized cost | 13 454 | 8 473 |
| Total | 80 572 | 64 114 |
|
SECURITIES (excluding adjustments relating to fair value hedge accounting) |
held for trading | not held for trading, measured at fair value through profit or loss |
measured at fair value through OCI | measured at amortized cost |
Total |
|---|---|---|---|---|---|
| Debt securities | 1 095 | 493 | 63 807 | 13 454 | 78 849 |
| NBP money market bills | – | – | 1 000 | – | 1 000 |
| Treasury bonds (in PLN) | 982 | 301 | 51 541 | 7 406 | 60 230 |
| Treasury bonds (in foreign currencies) | 2 | – | 2 520 | 60 | 2 582 |
| municipal bonds (in PLN) | 15 | – | 5 232 | 4 563 | 9 810 |
| corporate bonds (in PLN) | 95 | 192 | 3 514 | 1 083 | 4 884 |
| corporate bonds (in foreign currencies) | 1 | – | – | 342 | 343 |
| Equity securities | 17 | 1 706 | – | – | 1 723 |
| shares in other entities – not listed | – | 436 | – | – | 436 |
| shares in other entities – listed | 15 | 150 | – | – | 165 |
| Participation units in investment funds, investment certificates, rights to shares, preemptive rights | 2 | 1,120 | – | – | 1,122 |
| Total | 1 112 | 2 199 | 63 807 | 13 454 | 80 572 |
|
SECURITIES (excluding adjustments relating to fair value hedge accounting) |
held for trading | not held for trading, measured at fair value through profit or loss |
measured at fair value through OCI |
measured at amortized cost |
Total |
|---|---|---|---|---|---|
| Debt securities | 217 | 1 201 | 52 558 | 8 473 | 62 449 |
| NBP money market bills | – | – | 2 900 | – | 2 900 |
| Treasury bonds (in PLN) | 94 | 1 034 | 39 970 | 2 234 | 43 332 |
| Treasury bonds (in foreign currencies) | 4 | – | 393 | 124 | 521 |
| municipal bonds (in PLN) | 16 | – | 5 301 | 4 007 | 9 324 |
| municipal bonds (in foreign currencies) | – | 37 | – | – | 37 |
| municipal bonds (in PLN) | 102 | 130 | 3 942 | 1 764 | 5 938 |
| municipal bonds (in foreign currencies) | 1 | – | 52 | 344 | 397 |
| Equity securities | 18 | 1 647 | – | – | 1 665 |
| shares in other entities – not listed | – | 269 | – | – | 269 |
| shares in other entities – listed | 13 | 180 | – | – | 193 |
| Participation units in investment funds, investment certificates, rights to shares, preemptive rights | 5 | 1 198 | – | – | 1 203 |
| Total | 235 | 2 848 | 52 558 | 8 473 | 64 114 |
The item “T-bonds in PLN and in foreign currencies” comprises Polish T-bonds. As at 31 December 2019 and 31 December 2018, the item “Treasury bonds in foreign currencies” also includes bonds issued by the State of Ukraine of PLN 492 and 513 million, respectively.
Information about credit risk exposure for securities measured at amortized cost and at fair value through other comprehensive income is provided in note “Financial assets by stage of impairment and allowances for expected credit losses”.
| SECURITIES (excluding adjustments relating to fair value hedge accounting) 31.12.2019 |
measured at fair value through OCI | measured at amortized cost | ||||
| Gross amount | Allowances for expected credit losses |
Net amount | Gross amount | Allowances for expected credit losses |
Net amount | |
| Debt securities | 63 812 | (5) | 63 807 | 13 474 | (20) | 13 454 |
| NBP money market bills | 1 000 | – | 1 000 | – | – | – |
| Treasury bonds (in PLN) | 51 541 | – | 51 541 | 7 406 | – | 7 406 |
| Treasury bonds (in foreign currencies) | 2 520 | – | 2 520 | 61 | (1) | 60 |
| municipal bonds (in PLN) | 5 232 | – | 5 232 | 4 574 | (11) | 4 563 |
| corporate bonds (in PLN) | 3 519 | (5) | 3 514 | 1 087 | (4) | 1 083 |
| corporate bonds (in foreign currencies) | – | – | – | 346 | (4) | 342 |
| Total | 63 812 | (5) | 63 807 | 13 474 | (20) | 13 454 |
| SECURITIES (excluding adjustments relating to fair value hedge accounting) 31.12.2018 |
measured at fair value through OCI | measured at amortized cost | ||||
| Gross amount | Allowances for expected credit losses |
Net amount | Gross amount | Allowances for expected credit losses |
Net amount | |
| Debt securities | 52 568 | (10) | 52 558 | 8 499 | (26) | 8 473 |
| NBP money market bills | 2 900 | – | 2 900 | – | – | – |
| Treasury bonds (in PLN) | 39 970 | – | 39 970 | 2 234 | – | 2 234 |
| Treasury bonds (in foreign currencies) | 393 | – | 393 | 127 | (3) | 124 |
| municipal bonds (in PLN) | 5 301 | – | 5 301 | 4 013 | (6) | 4 007 |
| corporate bonds (in PLN) | 3 952 | (10) | 3 942 | 1 777 | (13) | 1 764 |
| corporate bonds (in foreign currencies) | 52 | – | 52 | 348 | (4) | 344 |
| Total | 52 568 | (10) | 52 558 | 8 499 | (26) | 8 473 |
| 31.12.2019 | 31.12.2018 | |
|---|---|---|
| allowance which does not reduce the fair value of securities measured at fair value through other comprehensive income | 21 | 25 |
| SECURITIES BY MATURITY (excluding adjustments relating to fair value hedge accounting) 31.12.2019 |
held for trading | not held for trading, measured at fair value through profit or loss |
measured at fair value through OCI |
measured at amortized cost |
Total |
| with unspecified maturity – equity securities | 17 | 1 706 | – | – | 1 723 |
| up to 1 month | 115 | – | 1 247 | – | 1 362 |
| 1 to 3 months | 3 | – | 105 | 10 | 118 |
| 3 months to 1 year | 331 | 47 | 2 215 | 403 | 2 996 |
| 1 to 5 years | 150 | 228 | 44 804 | 8 693 | 53 875 |
| over 5 years | 496 | 218 | 15 436 | 4 348 | 20 498 |
| Total | 1 112 | 2 199 | 63 807 | 13 454 | 80 572 |
| SECURITIES BY MATURITY (excluding adjustments relating to fair value hedge accounting) 31.12.2018 |
held for trading | not held for trading, measured at fair value through profit or loss |
measured at fair value through OCI |
measured at amortized cost |
Total |
| with unspecified maturity – equity securities | 18 | 1 647 | – | – | 1 665 |
| up to 1 month | 4 | – | 4 531 | 19 | 4 554 |
| 1 to 3 months | – | – | 443 | 136 | 579 |
| 3 months to 1 year | 30 | 362 | 2 972 | 755 | 4 119 |
| 1 to 5 years | 120 | 682 | 22 300 | 4 109 | 27 211 |
| over 5 years | 63 | 157 | 22 312 | 3 454 | 25 986 |
| Total | 235 | 2 848 | 52 558 | 8 473 | 64 114 |