Notes to the consolidated financial statements

44. Related parties

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The Group’s related parties are:

• Parent: Poczta Polska S.A.;
• entity exercising significant influence on the Group: PKO Bank Polski S.A.;
• other entities in the Poczta Polska S.A. Capital Group: Pocztowa Agencja Usług Finansowych S.A., Post-Tel Sp. z o.o., Postdata S.A., Pocztowe Towarzystwo Ubezpieczeń Wzajemnych, Pocztylion-Arka PTE S.A., Poczta Polska Usługi Cyfrowe Sp. z o.o., Pocztowe Likwidacja Szkód Sp. z o.o., Pocztowe Życie Sp. z o. o. in formation;
• key management personnel: members of the Management and Supervisory Board, directors of the Bank and its subsidiaries;
• key management personnel of Poczta Polska S.A.

In accordance with IAS 24, the Group treats the subsidiaries of the State Treasury of Poland as its related parties, since the State Treasury controls the Bank through its majority shareholder. For the purposes of these consolidated financial statements, subsidiaries of the State Treasury are companies wholly-owned by the State Treasury, state-owned enterprises and entities with the State Treasury as the majority shareholder, whose list is published on the website of the Ministry of State Treasury, as well as local government entities.
In 2013 and 2012, non-standard, significant related-party transactions whose nature and terms were not related to ongoing business operations were not concluded. All transactions were concluded on the arm’s length basis.

Presented below is the nature of significant agreements with related parties:

• a set of agreements concerning financial intermediation services provided by Poczta Polska S.A. on behalf of and for the Bank in respect of a wide array of products and services of the Bank, including, in particular, the Agency Agreement of 2 September 2011;
• agreements related to financial intermediation services provided on behalf of and for a related party – Poczta Polska S.A. (including a bank account agreement with additional products);
• a set of agreements related to the Bank’s financial services, including, in particular, the cash processing agreement;
• a cooperation agreement concerning the launch and operation of the Bank’s Micro-Branches (MB) in the network of Poczta Polska S.A. offices;
• a lease agreement setting out the terms and conditions of leasing/sub-leasing space or premises to be used as the Bank’s branches as part of the infrastructure of Poczta Polska S.A.;
• an agreement on the lease of hardware, use of an operating system and databases.

Receivables, liabilities, revenue and expenses arising from related-party transactions have been presented below.

Balance as at 31 December 2013	Parent	Entity exercising significant influence on the Group	Key management personnel	Other entities in the Poczta Polska S.A. Capital Group
	PLN ‘000	PLN ‘000	PLN ‘000	PLN ‘000
Receivables	43,251	25	10,535	364
Nostro accounts	0	25	0	0
Originated loans	0	0	10,535	341
Other receivables	43,251	0	0	23
Liabilities	1,008,516	0	2,691	58,556
Deposits received	900,085	0	2,691	49,929
Liabilities due to sold securities (repo)	0	0	0	8,182
Other liabilities	108,431	0	0	445
Off-balance sheet transactions	73,753	2,374	308	205
Off-balance sheet contingent liabilities	73,753	2,374	308	205
- originated	73,753	0	308	205
- received	0	2,374	0	0

Period from 1 January 2013 to 31 December 2013	Parent	Entity exercising significant influence on the Group	Key management personnel	Other entities in the Poczta Polska S.A. Capital Group
	PLN ‘000	PLN ‘000	PLN ‘000	PLN ‘000
Revenue	22,785	0	530	28,803
- interest income	0	0	500	48
- fees	22,360	0	29	28,721
- other revenue	425	0	1	34
Expenses	(64,310)	(619)	(20,502)	(1,759)
- interest expense	(17,138)	0	(108)	(968)
- fees	(28,700)	(609)	(49)	0
- non-personnel expenses	(18,472)	(10)	0	(770)
- personnel expenses	0	0	(20,345)	(21)

Balance as at 31 December 2012 (restated)	Parent	Entity exercising significant influence on the Group	Key management personnel	Other entities in the Poczta Polska S.A. Capital Group
	PLN ‘000	PLN ‘000	PLN ‘000	PLN ‘000
Receivables	75,497	42	2,826	2,469
Nostro accounts	0	42	0	0
Originated loans	0	0	2,826	1,160
Other receivables	75,497	0	0	1,309
Liabilities	1,136,826	0	1,086	27,025
Deposits received	1,009,974	0	1,078	26,802
Other liabilities	126,852	0	8	223
Off-balance sheet transactions	28,044	1,409	81	3,170
Off-balance sheet contingent liabilities	28,044	1,409	81	3,170
- originated	28,044	0	81	3,170
- received	0	1,409	0	0

Period from 1 January 2012 to 31 December 2012 (restated)	Parent	Entity exercising significant influence on the Group	Key management personnel	Other entities in the Poczta Polska S.A. Capital Group
	PLN ‘000	PLN ‘000	PLN ‘000	PLN ‘000
Revenue	29,650	285	193	6,665
- interest income	0	285	185	123
- fees	29,484	0	7	6,487
- other revenue	166	0	1	55
Expenses	(77,447)	(538)	(21,888)	(1,856)
- interest expenses	(33,607)	(49)	(36)	(1,548)
- fees	(24,189)	(470)	(1)	(18)
- non-personnel expenses	(19,651)	(19)	0	(290)
- personnel expenses	0	0	(21,851)	0

	Balance as at                            31 December 2013		Balance as at                    31 December 2012                    (restated)
	Companies with interest of the State Treasury	Local government entities	Companies with interest of the State Treasury	Local government entities
	PLN ‘000	PLN ‘000	PLN ‘000	PLN ‘000
Receivables	40,899	356,680	61,213	413,558
Originated loans	14	356,673	40,970	413,535
Other receivables	40,885	7	20,243	23
Liabilities	36,649	98,747	1,080	226,052
Deposits received	36,649	98,746	1,046	226,052
Other liabilities	0	1	34	0
Off-balance sheet transactions	0	0	67,592	6,446
Off-balance sheet contingent liabilities	0	0	67,592	6,446
- originated	0	0	0	6,446
- received	0	0	67,592	0

	period                 from 1 January 2013                 to 31 December 2013		period                 from 1 January 2012                 to 31 December 2012                 (restated)
	Companies with interest of the State Treasury	Local government entities	Companies with interest of the State Treasury	Local government entities
	PLN ‘000	PLN ‘000	PLN ‘000	PLN ‘000
Revenue	95	386	2,143	24,816
- interest income	95	382	490	23,736
- fees	0	4	105	1,080
- other revenue	0	0	1,548	0
Expenses	(443)	(42)	(1,147)	(7,663)
- interest expenses	(1)	(39)	(735)	(7,662)
- fees	(416)	0	0	(1)
- non-personnel expenses	(26)	(3)	(412)	0
- personnel expenses	0	0	0	0

Transactions with subsidiaries of the State Treasury other than those from the Poczta Polska S.A. Capital Group are related to banking operations (funding, deposits).

Loans and advances provided to members of the Management and Supervisory Board

Transactions with the management are in line with the standard product offering.

As at 31 December 2013, the Bank did not have any credit exposure to Members of its Management or Supervisory Board, Members of the Supervisory Board of the Bank’s subsidiaries or Members of the Supervisory Board of the Bank’s Parent.

As at 31 December 2013, the Bank’s credit exposure to two Members of the Management Board of its subsidiaries amounted to PLN 851 thousand and to one Member of the Management Board of the Parent amounted to PLN 91 thousand.

As at 31 December 2012, the Bank did not have any credit exposure to Members of its Management or Supervisory Board or Members of the Supervisory Board and Management Board of its subsidiaries, either. The Bank’s credit exposure to a Member of the Management Board of its Parent amounted to PLN 29 thousand.

Remuneration paid or due to the Management and Supervisory Boards of the Bank and its subsidiaries

	Balance as at 31 December 2013	Balance as at 31 December 2012 (restated)
	PLN ‘000	PLN ‘000
Management Board	2,650	3,018
Short-term employee benefits (payroll, bonuses and payroll charges)	2,556	2,963
Termination benefits	94	55
Supervisory Board	2,138	1,968
Short-term employee benefits (payroll, bonuses and payroll charges)	2,138	1,968

Remuneration paid or due to other senior management of the Bank and its subsidiaries

	Balance as at 31 December 2013	Balance as at 31 December 2012 (restated)
	PLN ‘000	PLN ‘000
Short-term employee benefits (payroll, bonuses and payroll charges)	15,487	16,706
Termination benefits	70	159
Total	15,557	16,865