2.8. Settlement of acquisition of the Core Business of Raiffeisen Bank Polska S.A.

The settlement of Transaction of Acquisition of RBPL’s Core Business is described in detail in Note 4.2 of the Consolidated Financial Statements of Bank BGŻ BNP Paribas S.A. Capital Group for the year ended 31 December 2018.

The amounts presented in the annual report, i.e. data related to the measurement of identifiable assets acquired and liabilities acquired measured at fair value and bargain purchase gain did not change.

The settlement of the purchase price was prepared by the Bank’s Management Board based on calculations resulting from the concluded Transaction Agreement. The final settlement in accordance with the terms of the Transaction Agreement was performed at 1 October 2019 subject to final arrangements between BGŻ BNP and RBI – selling the demerged part of RBPL.

As a result of the settlement, BNP Paribas Polska paid the amount of PLN 30,876 thousand to RBI. For the purpose of transaction settlement, the Bank used provisions for future liabilities created in 2018 as part of the purchase price allocation of RBPL’s Core Business. The settlement did not affect the Bank’s net financial result in 2019.

Accordingly, the purchase price allocation performed as at 31 October 2018 is considered final. According to IFRS 3.34, the Bank recognised the determined excess of the fair value of the acquired assets and liabilities assumed over the purchase price as at the acquisition date, directly as a result of 2018, as a gain on a bargain purchase. The gain amounted to PLN 291,706 thousand (and is disclosed in the profit or loss statement under „Other operating income”) and does not require any adjustments in 2019.