52. Financial assets and financial liabilities not presented at fair value in the consolidated statement of financial position
2022 Annual Report
The Group holds financial instruments which are not presented at fair value in the statement of financial position.
For many financial instruments, the market values are unattainable hence the presented fair values are estimated with the use of an array of measurement techniques.
All model calculations include certain simplifying assumptions and therefore are sensitive to those assumptions. For certain categories of financial instruments, it has been assumed that their carrying amount equals approximately their fair values, which is due to the lack of expected material differences between their carrying amount and fair value resulting from the features of these categories (such as short-term nature, high correlation with market parameters, the unique nature of the instrument).
| Item | Major methods and assumptions used when estimating fair values of financial instruments not measured at fair value | |
|---|---|---|
| AMOUNTS DUE FROM AND TO BANKS |
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| SECURITES |
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| LOANS AND ADVANCES TO CUSTOMERS |
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| AMOUNTS DUE TO CUSTOMERS |
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| SECURITES IN ISSUE | PKO Bank Hipoteczny SA:
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| PKO Finance AB: quotations on the Luxembourg Stock Exchange. | ||
| PKO Leasing S.A. The model of expected cash flows discounted using the current market quotations | ||
| SUBORNINATED LIABILITES | The model of expected cash flows discounted based on yield curves | |
| CASH AND BALANCES WITH THE CENTRAL BANK AND AMOUNTS DUE TO THR CENTRAL BANK | Fair values are equal to carrying amounts. | |
| OTHER FINANCIAL ASSETS AND FINANCIAL LIABILITIES | Fair values are equal to carrying amounts. |
| 31.12.2022 | Carrying amount | Fair value | ||
| Level 1 | Level 2 | Level 3 | ||
| Cash and balances with Central Bank | 15 917 | 4 215 | 11 702 | – |
| Amounts due from banks | 16 101 | – | 15 841 | – |
| Securities (excluding adjustments relating to fair value hedge accounting) | 68 556 | 49 891 | 7 779 | 1 733 |
| Treasury bonds (in PLN) | 45 893 | 38 773 | – | 23 |
| Treasury bonds (in foreign currencies)corporate bonds (in PLN) secured with the State | 713 | 708 | – | – |
| Treasury guarantees | 12 100 | 10 410 | – | – |
| municipal bonds (in PLN) | 6 182 | – | 6 332 | – |
| corporate bonds (in PLN) | 1 989 | – | – | 1 710 |
| corporate bonds (in foreign currencies) | 1 679 | – | 1 447 | – |
| Reverse repo transactions | 7 | – | 7 | – |
| Loans and advances to customers (excluding adjustment relating to fair value hedge accounting) | 228 164 | – | – | 230 438 |
| housing loans | 108 803 | – | – | 108 642 |
| business loans | 71 103 | – | – | 72 955 |
| consumer loans | 26 548 | – | – | 27 152 |
| factoring receivables | 3 591 | – | – | 3 592 |
| finance lease receivables | 18 119 | – | – | 18 097 |
| Other financial assets | 1 867 | – | – | 1 867 |
| Amounts due to Central bank | 9 | – | 9 | – |
| Amounts due to banks | 3 011 | – | 3 009 | – |
| Amounts due to customers (excluding adjustment relating to fair value hedge accounting) | 338 854 | – | – | 337 983 |
| amounts due to households | 263 032 | – | – | 262 128 |
| amounts due to business entities | 58 634 | – | – | 58 667 |
| amounts due to public sector | 17 188 | – | – | 17 188 |
| Loans and advances received | 2 294 | – | – | 2 283 |
| Securities in issue | 15 510 | 11 798 | 1 265 | 2 187 |
| Subordinated liabilities | 2 781 | – | 2 603 | – |
| Other financial liabilities | 4 387 | – | – | 4 387 |
| 31.12.2021 | Carrying amount | Fair value | ||
| Level 1 | Level 2 | Level 3 | ||
| Cash and balances with Central Bank | 11 587 | 3 581 | 8 006 | – |
| Amounts due from banks | 9 010 | – | 9 009 | – |
| Securities (excluding adjustments relating to fair value hedge accounting) | 71 282 | 57 930 | 6 507 | 1 780 |
| Treasury bonds (in PLN) | 50 816 | 46 867 | – | – |
| corporate bonds (in PLN) secured with the State | 12 092 | 11 063 | – | – |
| municipal bonds (in PLN) | 5 022 | – | 5 075 | – |
| corporate bonds (in PLN) | 1 937 | – | – | 1 780 |
| corporate bonds (in foreign currencies) | 1 415 | – | 1 432 | – |
| Loans and advances to customers (excluding adjustment relating to fair value hedge accounting) | 229 740 | – | – | 231 385 |
| housing loans | 119 139 | – | – | 118 351 |
| business loans | 64 050 | – | – | 65 907 |
| consumer loans | 26 077 | – | – | 26 636 |
| factoring receivables | 2 923 | – | – | 2 923 |
| finance lease receivables | 17 551 | – | – | 17 568 |
| Other financial assets | 1 895 | – | – | 1 895 |
| Amounts due to Central bank | 8 | – | 8 | – |
| Amounts due to banks | 3 821 | – | 3 821 | – |
| Amounts due to customers (excluding adjustment relating to fair value hedge accounting) | 321 229 | – | – | 321 213 |
| amounts due to households | 244 545 | – | – | 244 529 |
| amounts due to business entities | 56 854 | – | – | 56 854 |
| amounts due to public sector | 19 830 | – | – | 19 830 |
| Loans and advances received | 2 461 | – | – | 2 461 |
| Securities in issue | 23 872 | 16 989 | 3 475 | 3 642 |
| Subordinated liabilities | 2 716 | – | 2 719 | – |
| Other financial liabilities | 3 335 | – | – | 3 335 |