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Notes to the consolidated financial statements

40. Off-balance seet contingent liabilities

Download note 40 in XLS

Off-balance seet contingent liabilities granted

Off-balance seet contingent liabilities granted
by type		 Balance as at
31 December 2014		 Balance as at
31 December 2013
  PLN’000 PLN’000
Financial 125,543 261,402
- unused credit lines 111,666 204,504
- originated deposit lines 0 40,000
- credit card limits 13,877 16,898
Guarantees 49,959 47,166
- guarantees granted 49,959 47,166
Total 175,502 308,568

 

Off-balance seet contingent liabilities granted
by maturity		 Balance as at
31 December 2014		 Balance as at
31 December 2013
   PLN’000 PLN’000
Financial 125,543 261,402
Undetermined maturity 79,479 131,249
Up to 1 month 3,017 9,548
From 1 to 3 months 7,964 23,828
From 3 months to 1 year 21,034 72,709
From 1 year to 5 years 14,049 24,068
Guarantees 49,959 47,166
Up to 1 month 1,087 34
From 1 to 3 months 98 22
From 3 months to 1 year 3,564 155
From 1 year to 5 years 45,210 46,955
Total 175,502 308,568

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.

Gross off-balance sheet exposures (credit lines, guarantees) to five key clients in a given year as at 31 December 2014 and 31 December 2013 have been presented below:

 

Obligor’s name  Balance as at
31 December 2014
  PLN’000
Client 1 48,800
Client 2 12,923
Client 3 10,832
Client 4 4,643
Client 5 1,611
Total 78,809

 

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
Total 113,699

As at 31 December 2014 the provision for guarantees and financial committments amounted to PLN 631 thousand (as at 31 December 2013 it was PLN 1 125 thousand). Provisions for off-balance sheet liabilities are recognized in balance sheet accounts and presented in Note 32 as “Provisions for off-balance sheet liabilities”.

 

Off-balance seet contingent liabilities received

 

Off-balance seet contingent liabilities received
by type		 Balance as at
31 December 2014		 Balance as at
31 December 2013
   PLN’000 PLN’000
Guarantees 1,235 2,970
- guarantees received 1,235 2,970
Total 1,235 2,970

 

Off-balance seet contingent liabilities received
by maturity		 Balance as at
31 December 2014		 Balance as at
31 December 2013
   PLN’000 PLN’000
Guarantees 1,235
 2,970
Up to 1 month 60 0
From 1 to 3 months 234 1,458
From 3 months to 1 year 941 1,032
From 1 year to 5 years 0 357
Over 5 years 0 123
Total 1,235 2,970

 

The key item of contingent liabilities received is a guarantee received securing the Group's liabilities under office space lease agreement.


Litigation

In 2014, 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 323 thousand as at 31 December 2014 and PLN 473 thousand as at 31 December 2013, respectively.

 

Annual Report 2014 - Bank Pocztowy