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Financial statements

of Bank Gospodarstwa Krajowego

prepared in accordance with IFRS

for the financial year from

1 January to 31 December 2020

The above financial statements of Bank Gospodarstwa Krajowego is a translation from the original Polish version. In case of any discrepancies between the Polish and English version,

the Polish version shall prevail.

Warsaw, 15 April 2021

Financial statements of Bank Gospodarstwa Krajowego

prepared in accordance with IFRS for the financial year from 1 January to 31 December 2020

(in PLN thousand)

Selected financial data on financial statements

The selected financial data specified below constitutes additional information to the financial statements of BGK for 2020.

 

in PLN thousand

in EUR thousand

For the period

from 1 Jan 2020

to 31 Dec 2020

For the period

from 1 Jan 2019 to 31 Dec 2019

For the period

from 1 Jan 2020

to 31 Dec 2020

For the period

from 1 Jan 2019

to 31 Dec 2019

Net interest income

944,163

945,730

211,024

219,847

Net fee and commission income

248,311

219,116

55,498

50,936

Operating result

369,922

578,598

82,679

134,503

Profit before tax

369,922

578,598

82,679

134,503

Net profit

315,655

511,185

70,550

118,832

Net comprehensive income

262,957

412,984

58,772

96,004

Cash flows from operating activities

11,384,471

4,183,733

2,544,471

972,563

Cash flows from investing activities

-997,017

18,518

-222,837

4,305

Cash flows from financing activities

-2,510,316

1,192,132

-561,065

277,127

Net cash flows

7,877,138

5,394,383

1,760,569

1,253,995

 

in PLN thousand

in EUR thousand

As at

31 Dec 2020

As at

31 Dec 2019

As at

31 Dec 2020

As at

31 Dec 2019

Balance sheet total

160,301,224

100,604,250

34,736,332

23,624,340

Total equity

23,874,020

18,675,206

5,173,360

4,385,395

 Total capital ratio

excluding flow funds

33.06%

28.71%

33.06%

28.71%

 Total capital ratio

including flow funds

33.04%

27.54%

33.04%

27.54%

Basic funds (Tier 1 capital)

23,460,630

17,869,910

5,083,780

4,196,292

Supplementary funds (Tier 2 capital)

0

0

0

0

Selected financial data on the financial statements was translated to EUR in line with the following rates:

31 Dec 2020

31 Dec 2019

§ items from the statement of profit or loss, statement of comprehensive income, and statement of cash flows at the mid-exchange rate quoted by the National Bank of Poland (NBP) calculated as an arithmetic mean of the exchange rates applicable on the last day of each month in a given period

4.4742

4.3018

§ items from the statement of financial position at the mid-exchange rate quoted by the NBP for the last day of the period

4.6148

4.2585



Financial statements of Bank Gospodarstwa Krajowego

prepared in accordance with IFRS for the financial year from 1 January to 31 December 2020

(in PLN thousand)

Table of contents

Selected financial data on financial statements. 2

Statement of profit or loss. 4

Statement of comprehensive income. 4

Statement of financial position.. 5

Statement of changes in equity. 6

Statement of cash flows. 8

Notes to the financial statements. 9

1.      General information. 9

2.      Accounting policies. 14

3.      Operating segments. 33

Notes to the statement of profit or loss and other comprehensive income. 34

4.      Interest income and expense. 34

5.      Fee and commission income and expense. 34

6.      Net gains (losses) on financial instruments at fair value through profit or loss and foreign exchange gains (losses) 35

7.      Net gains (losses) on investments in financial assets. 35

8.      Net gains (losses) on modifications. 35

9.      Other operating income and expenses. 35

10.     General administrative expenses. 36

11.     Net impairment losses and provisions. 36

12.     Income tax. 37

13.     Earnings per share. 39

14.     Contribution to the State Budget 39

Notes to the statement of financial position.. 40

15.     Cash and balances with the Central Bank. 40

16.     Amounts due from banks. 40

17.     Derivative financial instruments. 41

18.     Securities. 42

19.     Receivables and liabilities under reverse repurchase/repurchase agreements. 45

20.     Loans and advances to customers. 46

21.     Investments in subsidiaries. 47

22.     Investments in associates. 48

23.     Intangible assets. 52

24.     Property, plant and equipment 54

25.     Right-of-use assets. 55

26.     Investment property. 57

27.     Other assets. 58

28.     Amounts due to banks. 58

29.     Liabilities to customers. 59

30.     Debt securities issued. 59

31.     Lease liabilities. 59

32.     Other liabilities. 60

33.     Provisions. 60

34.     Equity. 63

Other notes. 64

35.     Contingent liabilities and off-balance-sheet liabilities granted and received. 64

36.     Additional information to the statement of cash flows. 65

37.     Transactions with the Treasury and the state traesury related entities. 67

38.     Related party transactions (capital or personal links) 70

39.     Remuneration of the top executives. 71

40.     Principles of variable remuneration for top executives. 72

41.     Fair value of financial assets and financial liabilities. 73

42.     Custody business. 78

Risk management objectives and principles.