Statement of financial position

The most important change in the Group’s asset structure compared to the end of 2020 was a decrease in the share of the securities portfolio (-3.5 p.p.) with a simultaneous increase in the share of the loan portfolio (sum of portfolios measured at amortised cost and at fair value), which increased by 2.2 p.p. The shares of receivables from banks also increased by 1.3 p.p. and cash and balances with the Central Bank by 0.7 p.p. 

The Group’s asset structure was dominated by loans and advances to customers (sum of portfolios measured at amortized cost and at fair value), which accounted for 65.5% of total assets at the end of 2021 compared to 63.3% at the end of 2020. The increase in the net volume of loans and advances amounted to PLN 10,662,364 thousand (+14.1%) and concerned both the individual customers portfolio (+16.1%) and the corporate customers portfolio (+12.6%). The biggest growth was recorded in mortgage loans (+18.9%).  

The second largest asset item was securities, which accounted for 24.9% of total assets at the end of 2021 (end of 2020: 28.4%). As at 31 December 2021, their value decreased by PLN 1,202,779 thousand (i.e. 3.5%) compared to the end of 2020. The decrease in the portfolio mainly concerned securities measured at fair value through other comprehensive income, including bonds issued by banks and central government institutions. 

Simultaneously with the above changes, there was an increase in the share of receivables from banks from 0.6% to 2.0% (in value terms PLN 1,840,428 thousand i.e. by 237.6%) and an increase in the share of cash and balances with the Central Bank from 2.9% to 3.5% (in value terms PLN 1,209,600 thousand i.e. by 35.3%). 

At the end of 2021, gross loans and advances to customers (sum of portfolios measured at amortised cost and measured at fair value) amounted to PLN 89,386,369 thousand and increased by PLN 10,386,615 thousand, i.e. by 13.1% compared to the end of 2020.  

The gross portfolio of loans and advances measured at amortised cost in the period under review amounted to PLN 88,042,967 thousand and increased by PLN 10,758,893 thousand or 13.9% compared to the end of 2020. 

At the end of 2021, gross loans and advances to retail customers amounted to PLN 38,817,716 thousand (up by PLN 5,015,619 thousand or 14.8% compared to the end of 2020). Their share in the loan portfolio measured at amortised cost in the analysed period was 44.1% (+0.4 p.p. compared to the end of 2020). Over two-thirds (68.8%) of credit exposure of individual customers are mortgage loans, which at the end of 2021 amounted to PLN 26,710,997 thousand. In the structure of mortgage loans, 82.9% are loans granted in PLN, while 17.0% are loans granted in CHF (compared to the end of last year, the share of CHF dropped by 4.4 p.p.).  

The gross portfolio of loans and advances to business entities (excluding farmers) amounted to PLN 35,599,112 thousand (an increase by PLN 5,044,792 thousand or 16.5% as compared to the end of 2020). Their share in the analysed loan portfolio at the end of 2021 amounted to 40.4% (+0.9 p.p. compared to the end of 2020). Almost half of this portfolio (49.2%) are current account loans.  

The volume of loans granted to individual farmers at the end of 2021 amounted to PLN 7,755,784 thousand, registering a 4.5% decrease compared to December 2020. 

Lease receivables amounted to PLN 4,989,351 thousand (an increase of 21.3% compared to the end of 2020). Their share in the loan portfolio measured at amortised cost in the analysed period amounted to 5.7% (compared to 5.3% at the end of 2020). 

The volume of loans granted to non-banking financial entities and budget sector institutions totalled PLN 881,004 thousand, registering a 26.5% increase compared to December 2020.      

The ratio of impaired exposures to gross loans and advances to customers and measured at amortized cost was 3.6% at year-end 2021, down 1.7 p.p. compared to year-end 2020. 

In December 2017, the Bank performed a securitization transaction of the portfolio of cash and car loans. The transaction is a traditional securitization involving the transfer of ownership of the securitized receivables to SPV (BGŻ Poland ABS1 DAC based in Ireland). The revolving period is 24 months. Transaction is subject to amortisation since January 2020. 

As a result of securitization, the Bank obtained financing in exchange for the transfer of rights to future cash flows resulting from the securitized loan portfolio in a value of PLN 2,300,471 thousand as of 22 November 2017 (the cut-off date). The maximum deadline for full redemption of bonds and repayment of the loan is 27 April 2032. 

SPV issued bonds with a total value of PLN 2,180,850 thousand on the basis of securitized assets, and received a loan of PLN 119,621 thousand, which were secured by a registered pledge on the rights to cash flows from securitized assets. As at the end of December 2021, the value of bonds and loans amounted to PLN 761,924 thousand. 

The main benefit of the performed transaction is a positive impact on capital adequacy ratios and improvement of liquidity and diversification of financing sources. 

In the light of the provisions of IFRS 9, the contractual terms of the securitization do not fulfil the conditions for derecognition of securitized assets. In connection with the above, the Bank recognizes securitized assets in “Loans and advances to customers” as at 31 December 2021 at net value of PLN 775,591 thousand. 

The Bank acts as a servicer in the transaction. 

As at 31 December 2021, the Group’s total liabilities amounted to PLN 120,415,850 thousand and were PLN 12,869,089 thousand or 12.0% higher than at the end of 2020. The share of liabilities in the Group’s total liabilities and equity was 91.4% in the analyzed period (+1.4 p.p. compared to the end of 2020).  

At the end of 2021, there were no significant changes in the structure of the Group’s liabilities. 

The structure of liabilities is dominated by amounts due to customers. Their share as at 31 December 2021 was 84.0% and increased by 0.2 p.p. compared to the end of 2020. In terms of value, the volume of these liabilities increased by PLN 11,041,937 thousand, i.e. by 12.3% compared to December 2020 and amounted to PLN 101,092,941 thousand. 

The increase of the share in total liabilities by 0.3 p.p. to the level of 6.7% was recorded by amounts due to banks. Their value amounted to PLN 8,012,244 thousand and was higher compared to the end of 2020 by PLN 1,187,350 thousand (i.e. by 17.4%).  

The equity of the Group as at 31 December 2021 amounted to PLN 11,361,631 thousand and decreased compared to 31 December 2020 by 5.6% i.e. by PLN 668,896 thousand. The share of total equity in the Group’s total liabilities and equity was as at 31 December 2021 8.6% (compared to 10.1% at the end of last year).

At the end of December 2021, amounts due to customers amounted to PLN 101,092,941 thousand and were higher by PLN 11,041,937 thousand or 12.3% compared to the end of 2020.  

In terms of entities, the increase mainly concerned amounts due to business entities (balance as at 31.12.2021: PLN 53,418,415 thousand), the volume of which increased by PLN 9,740,909 thousand, i.e. by 22.3% compared to the balance as at the end of 2020, mainly as a result of an increase in current deposits (by PLN 6,991,830 thousand). The share of this segment in the structure of total amounts due to customers increased to 52.8% compared to 48.5% at the end of December 2020.  

An increase in deposit volumes was also recorded in the group of individual customers. Their balance as at the end of December 2021 amounted to PLN 44,771,970 thousand and was by PLN 1,193,141 thousand (or 2.7%) higher than at the end of the previous year. At the same time, the share of individual clients’ deposits in the total liabilities to clients decreased to 44.3% from 48.5% at the end of 2020.  

The volume of deposits from public sector institutions also increased to PLN 1,586,835 thousand, a change of 25.3% compared to the end of 2020.  

However, a decrease was recorded in the group of deposits from non-banking financial entities change in value of PLN 212,977 thousand or 13.9% compared to the end of the previous year. 

As at 31 December 2021, the equity of the Group amounted to PLN 11,361,631 thousand and was by PLN 668,896 thousand or 5.6% lower than at the end of 2020.  

In accordance with the Resolution No. 6 of the Annual General Meeting of the Bank dated 24.03.2021, the Bank’s profit after tax (net financial result) for the financial year 2020 in the amount of PLN 731,060 thousand was transferred in full to the reserve capital.

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The following table presents the value of contingent liabilities granted and received. 

The amount of long-term contingent liabilities granted as at 31.12.2021 is PLN 18,813,999 thousand (31.12.2020 was PLN 15,903,598 thousand), while long-term contingent liabilities received as at 31.12.2021 was PLN 24,046,996 thousand (31.12.2020 was PLN 20,249,636 thousand).