Notes to the consolidated financial statements
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.