Annual Report 2013
Poll
Notes to the consolidated financial statements
48. Capital management
Capital adequacy management is aimed to ensure that the Group’s equity level is not lower than the one required by internal and external regulations. The regulations link the required capital level with the scale of operations and risks assumed by the Group.
Considering the above, the Group regularly:
- identifies risks material for its business;
- manages material risks;
- determines internal capital to be maintained should the risk materialize;
- calculates and reports capital adequacy measures;
- allocates internal capital to individual business areas;
- performs stress tests;
- compares its capital needs with the level of equity held;
- integrates the capital adequacy assessment with development of the Bank’s Strategy, financial and sales plans;
In 2013, the supervisory solvency ratio and internal solvency ratio of the Group was above the required regulatory minimum.
Equity and solvency ratio
The Group’s equity consists of Tier 1 and Tier 2 capital. In 2013, Tier 1 capital included:
- core capital: share capital, supplementary capital and reserve capital;
- general risk reserve;
and was reduced by:
- the carrying amount of intangible assets;
- loss on measurement of financial instruments classified as available for sale;
- other items, as specified in supervisory regulations.
Tier 2 capital of the Group in 2013 included:
- a portion of gains on measurement of debt instruments classified as available for sale, as determined by the applicable regulations;
- cash obtained from a subordinate loan received in 2011 and two issues of subordinate bonds (carried out in 2011 and 2012, respectively);
- other items, as specified in supervisory regulations.
The table below presents the equity, solvency ratio and Tier 1 capital as at 31 December 2013 and 31 December 2012.
Equity (PLN’000) | Balance as at 31 December 2013 |
Balance as at 31 December 2012 (restated) |
---|---|---|
I. Tier 1 capital | 360,121 | 329,660 |
1. Core capital | 267,220 | 224,776 |
a) Share capital | 97,290 | 97,290 |
b) Supplementary capital | 34,068 | 33,761 |
c) Reserve capital | 135,862 | 93,725 |
2. Additional items of Tier 1 capital | 142,372 | 140,294 |
a) General risk reserve | 106,345 | 101,345 |
b) Net profit for the period | 36,027 | 38,949 |
3. Items reducing Tier 1 capital, including: | (49,471) | (35,410) |
a) Carrying amount of intangible assets | (30,215) | (27,339) |
b) Prior year loss | (16,476) | (7,981) |
c) Other | (2,780) | (90) |
II. Tier 2 capital, including: | 123,810 | 135,946 |
1. Subordinated liabilities classified as Tier 2 capital | 123,140 | 131,740 |
2. Other | 670 | 4,206 |
Equity | 483,931 | 465,606 |
Equity (PLN’000) | Balance as at 31 December 2013 |
Balance as at 31 December 2012 (restated) |
---|---|---|
Capital requirements for credit, counterparty credit, dilution and settlement risk, including for exposures |
267,672 | 233,697 |
with 0% risk weight | 0 | 0 |
with 20% risk weight | 5,884 | 6,800 |
with 35% risk weight | 45,440 | 42,305 |
with 50% risk weight | 1,091 | 737 |
with 75% risk weight | 145,771 | 121,279 |
with 100% risk weight | 69,086 | 61,232 |
with 150% risk weight | 400 | 1,344 |
other risk weights | 0 | 0 |
Capital requirement for operational risk | 35,390 | 33,179 |
Total capital requirement | 303,062 | 266,876 |
Solvency ratio | 12.8% | 14.0% |
Tier 1 | 9.5% | 9.9% |
Annual Report 2013 - Bank Pocztowy
Corporate Governance
- Corporate governance: principles and scope of application
- Control system in the process of preparing financial statements
- Entity authorized to audit financial statements
- Shareholding structure and share capital
- Key information regarding Poczta Polska S.A.
- Cooperation with Poczta Polska S.A.
- Investor relations
- By-laws amending principles
- Activities of the corporate bodies of the Bank