Financial results

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25. Investments in financial assets

Balance as at	Available for sale	Held to maturity	Total
31 December 2015
	PLN’000	PLN’000	PLN’000
Quoted	788 533	424 481	1 213 014
Treasury bonds, including	779 609	394 645	1 174 254
- covering Bank Guarantee Fund	0	32 838	32 838
Bank bonds and certificates of deposit	8 924	29 836	38 760
Unquoted	14 814	20 209	35 023
Shares	14 814	0	14 814
Bank bonds and certificates of deposit	0	20 209	20 209
Total investments in financial assets	803 347	444 690	1 248 037

 

“Shares” include the fair value of shares in Visa Europe Limited (”Visa Europe”). In December 2015 Visa Europe informed the Bank that the potential impact of settling the acquisition of Visa Europe by Visa Inc. allocated to the Bank will reach EUR 3,511,000, including EUR 2,614,000 of cash and EUR 897,000 of preference shares convertible to shares in Visa Inc. The amounts in question may be adjusted by transaction costs and other adjustments resulting from possible appeals filed by members of Visa Europe regarding adjustments of amounts awarded due to transaction settlement. Moreover, deferred earnout payments to Visa Europe members after 16 quarters of the transaction close have been assumed in the deal. Earnout is awarded to members meeting qualification criteria for payments in cash and shares who will not have discontinued their membership in Visa for 4 years of the transaction date. As at 31 December 2015 the deferred earnout amount allocated to the Bank was not determined.

Based on the information the Bank remeasured shares in Visa Europe to their fair value, with the fair value assumed in the amount of cash allocated to the Bank as a result of the transaction settlement and the value of shares awarded including a 6% discount, i.e. EUR 3,457,000 (PLN 14,733,000). The measurement was recognized in “Revaluation reserve”. As the deferred earnout allocated to the Bank was not determined at the end of the reporting period, the Bank did not account for this amount in the measurement of shares in Visa Europe.

 

Balance as at	Available for sale	Held to maturity	Total
31 December 2014
	PLN’000	PLN’000	PLN’000
Quoted	620 592	393 688	1 014 280
Treasury bonds, including	611 726	393 688	1 005 414
- covering Bank Guarantee Fund	0	37 383	37 383
Bank bonds and certificates of deposit	8 866	0	8 866
Unquoted	479 955	25 031	504 986
Shares	8	0	8
Debt instruments issued by the National Bank of Poland	479 947	0	479 947
Bank bonds and certificates of deposit	0	25 031	25 031
Total investments in financial assets	1 100 547	418 719	1 519 266

Investment assets available for sale – by maturity

	Balance as at	Balance as at
	31 December 2015	31 December 2014
	PLN’000	PLN’000
Up to 1 month	0	479 947
From 1 to 3 months	0	0
From 3 months to 1 year	86 655	91 491
From 1 year to 5 years	662 483	520 235
Over 5 years	39 395	8 866
With unspecified maturity	14 814	8
Total	803 347	1 100 547

 

Investment financial assets held to maturity – by maturity

	Balance as at	Balance as at
	31 December 2015	31 December 2014
	PLN’000	PLN’000
Up to 1 month	0	4 996
From 1 to 3 months	35 154	9 957
From 3 months to 1 year	118 160	214 905
From 1 year to 5 years	291 376	178 233
Over 5 years	0	10 628
Total	444 690	418 719

 

Reclassification of securities

In 2010 and in 2014, following the intended use change, the Group reclassified securities from available for sale to held to maturity, in accordance with classification criteria described in IAS 39.

The face value, the carrying amount and the fair value of reclassified securities as at 31 December 2015 and 31 December 2014 have been presented in detail in the table below.

 

	Balance as at			Balance as at
	31 December 2015			31 December 2014
Item	Nominal value subject to reclassification	Carrying amount	Fair value	Nominal value subject to reclassification	Carrying amount	Fair value
	PLN’000	PLN’000	PLN’000	PLN’000	PLN’000	PLN’000
Treasury bonds	185 000	189 442	195 302	382 271	393 688	406 348
Total	185 000	189 442	195 302	382 271	393 688	406 348

 

Figures which would have been recognized in income statement and other comprehensive income if the reclassification had not been carried out

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	Period		Period
	from 1 January 2015		from 1 January 2014
	to 31 December 2015		to 31 December 2014
Item	Income statement	Other comprehensive income	Income statement	Other comprehensive income
	PLN’000	PLN’000	PLN’000	PLN’000
Treasury bonds	13 881	(6 162)	19 684	(2 159)
Total	13 881	(6 162)	19 684	(2 159)

 
Figures recognized in income statement and other comprehensive income following the reclassificatio

 

	Period		Period
	from 1 January 2015		from 1 January 2014
	to 31 December 2015		to 31 December 2014
Item	Income statement	Other comprehensive income	Income statement	Other comprehensive income
	PLN’000	PLN’000	PLN’000	PLN’000
Treasury bonds	13 881	442	19 684	207
Total	13 881	442	19 684	207

Following the review of the impact of the reclassified securities on profit or loss and other comprehensive income, discussed in this note, the Group restated the amounts presented in this note and disclosed in the consolidated financial statements for the year ended 31 December 2014.