Notes to the consolidated financial statements

41. Contingent assets and off-balance sheet and contingent liabilities

Download note 41 in XLS

Contingent liabilities by type	Balance as at 31 December 2013	Balance as at 31 December 2012 (restated)
	PLN ‘000	PLN ‘000
Financial	261,402	236,149
- unused credit lines	244,504	221,827
- credit card limits	16,898	14,322
Guarantees	47,166	14,019
- guarantees granted	47,166	14,019
Total	308,568	250,168

Contingent liabilities by maturity	Balance as at 31 December 2013	Balance as at 31 December 2012 (restated)
	PLN ‘000	PLN ‘000
Financial	261,402	236,149
Undetermined maturity	131,249	125,964
Up to 1 month	9,548	13,430
1 to 3 months	23,828	26,328
3 months to 1 year	72,709	63,561
1 to 5 years	24,068	6,866
Guarantees	47,166	14,019
Up to 1 month	34	835
1 to 3 months	22	1933
3 months to 1 year	155	7,494
1 to 5 years	46,955	3,757
Above 5 years	0	0
Total	308,568	250,168

The majority of contingent liabilities are credit lines. Guarantees granted and unconditional financial commitments are treated as an exposure bearing credit risk. Assessment of risk resulting from guarantees and unconditional financial commitments is a part of the credit risk assessment process related to other credit products held by the clients, i.e. all credit products, including guarantees, granted to specified obligors are reviewed both for indications of impairment and assessment of impairment losses.

Off-balance sheet gross exposures (credit lines and guarantees) to top five clients in a given year have been presented below.

Obligor’s name	Balance as at 31 December 2013
	PLN ‘000
Client 1	73,753
Client 2	20,736
Client 3	8,551
Client 4	6,559
Client 5	4,100

Obligor’s name	Balance as at 31 December 2012 (restated)
	PLN ‘000
Client 1	28,044
Client 2	13,833
Client 3	7,500
Client 4	5,000
Client 5	4,158

As at 31 December 2013, estimated provisions for guarantees and financial commitments amounted to PLN 1.125 thousand (vs. PLN 684 thousand as at 31 December 2012). Provisions for off-balance sheet liabilities are recognized in balance sheet accounts and presented in Note 32 as „Provisions for off-balance sheet liabilities”.

Litigation

In 2013, the Group was not a party to any proceedings held before a court or public administration body, whose value would be equal to or higher than 10% percent of the Group’s equity. Any risks related to court or public administration proceedings have been adequately secured with relevant provisions.
The total value of claims related to litigation in which the Group is a defendant, where the probability of losing is estimated by the Group below 50%, was PLN 473 thousand as at 31 December 2013 and PLN 464 thousand as at 31 December 2012, respectively.