73. Transactions with the state treasury and related parties
Transactions with the state treasury
The State Treasury holds a 29.43% interest in the Bank’s share capital.
Pursuant to the Act of 30 November 1995 on the state support in repayment of certain housing loans, reimbursement of guarantee bonuses paid, and amendments to certain Acts, PKO Bank Polski S.A. receives payments from the State budget as the repurchase of interest receivable on housing loans.
| TRANSACTIONS WITH THE STATE TREASURY | 2022 | 2021 |
|---|---|---|
| Income recognized on an accruals basis | 65 | 73 |
| Income recognized on a cash basis | 12 | 19 |
| Income from temporary redemption by the State Treasury of interest on housing loans in the „old portfolio” | 53 | 54 |
As of 1 January 2018 based on the provisions of the Act of 30 November 1995 on state support in the repayment of certain housing loans, granting guarantee bonuses and reimbursement of guarantee bonuses paid, the borrowers acquired the right to be forgiven the remaining debt by the State Treasury, which will result in gradual (until 2026) full settlement of the housing loan indebtedness from the so-called “old” portfolio. The Bank conducts settlements in respect of repurchase of interest on housing loans by the State Budget and on this account the Bank received commission in 2022 and 2021 amounting to under PLN 1 million.
As of 1 January 1996, the Bank became the general distributor of value marks. The Bank receives commissions in this respect from the State Treasury – in 2022 and in 2021, the Bank received commission on this account of under PLN 1 million.
Biuro Maklerskie PKO BP plays the role of an agent for the issue of retail Treasury bonds under the agreement signed with the Ministry of Finance on 11 February 2003. Under this agreement, Biuro Maklerskie PKO BP receives a fee for providing the services of an agent for the issue of bonds – in 2022 in the amount of PLN 254 million, and in 2021 in the amount of PLN 144 million.
Significant transactions with the state treasury’s related parties
The Group’s exposure and the value of the Group’s liabilities to 10 entities related to the State Treasury with the highest total exposure are presented below.
| SIGNIFICANT TRANSACTIONS WITH THE STATE TREASURY’S RELATED PARTIES | BALANCE SHEET EXPOSURE, INCLUDING EXPOSURE TO LOANS AND DEBT INSTRUMENTS | OFF-BALANCE SHEET EXPOSURE | LIABILITIES IN RESPECT OF DEPOSITS | |||
|---|---|---|---|---|---|---|
| 31.12.2022 | 31.12.2021 | 31.12.2022 | 31.12.2021 | 31.12.2022 | 31.12.2021 | |
| Counterparty 1 | – | – | 2 453 | 2 453 | 2 820 | 2 870 |
| Counterparty 2 | 16 097 | 16 337 | 31 | 30 | 87 | 1 068 |
| Counterparty 3 | 245 | 887 | 1 081 | 662 | 5 | 145 |
| Counterparty 4 | 422 | 277 | 3 807 | 2 111 | 2 087 | 86 |
| Counterparty 5 | 833 | 697 | 2 096 | 1 976 | 6 | 54 |
| Counterparty 6 | 118 | 118 | 1 500 | – | 275 | 3 225 |
| Counterparty 7 | 1 643 | 247 | 4 610 | 1 598 | 1 088 | 453 |
| Counterparty 8 | 751 | 575 | 557 | 1 410 | – | – |
| Counterparty 9 | 608 | 717 | 1 320 | 820 | 59 | 874 |
| Counterparty 10 | 841 | 896 | 816 | 444 | – | – |
| 2022 | 2021 | |
|---|---|---|
| Interest and commission income | 420 | 119 |
| Interest and commission expense | (497) | (7) |
As at 31 December 2022, the allowance for expected credit losses on an individualized basis for the above exposures amounted to PLN 1 million (as at 31 December 2021 it amounted to PLN 0 million).
In the opinion of the Group, all transactions with entities related to the State Treasury are concluded on an arm’s- length basis.
Related-party transactions – capital links
Transactions of the Bank as the parent company with associates and joint ventures are presented in the table below. All transactions with joint ventures and associates presented below were arm’s length transactions. Repayment terms are within a range of from one month to seventeen years.
| 31.12.2022 Company name |
Receivables | of which loans | Liabilities | Off-balance sheet liabilities granted |
| Centrum Elektronicznych Usług Płatniczych eService sp. z o.o. | 64 | – | 206 | 63 |
| „Centrum Obsługi Biznesu” sp. z o.o. | 11 | 10 | 2 | – |
| Bank Pocztowy S.A. | – | – | – | 1 |
| Operator Chmury Krajowej sp. z o.o. | – | – | 31 | 917 |
| Total joint ventures and associates | 75 | 10 | 239 | 981 |
| For the period ended 31.12.2022 Company name |
Total income | of which interest and commission income | Total expense | of which interest and commission income |
| Centrum Elektronicznych Usług Płatniczych eService sp. z o.o. | 850 | 783 | 198 | 198 |
| „Centrum Obsługi Biznesu” sp. z o.o. | 1 | 1 | 1 | 1 |
| Operator Chmury Krajowej sp. z o.o. | – | – | 29 | – |
| System Ochrony Banków Komercyjnych S.A.1 | – | – | 956 | – |
| Total joint ventures and associates | 851 | 784 | 1 184 | 199 |
| 31.12.2021 Company name |
Receivables | of which loans | Liabilities | Off-balance sheet liabilities granted |
| Centrum Elektronicznych Usług Płatniczych eService sp. z o.o. | 83 | 28 | 133 | 33 |
| „Centrum Obsługi Biznesu” sp. z o.o. | 17 | 17 | 5 | – |
| Bank Pocztowy S.A. | – | – | – | 1 |
| „Poznański Fundusz Poręczeń Kredytowych” sp. z o.o. | – | – | 1 | – |
| Operator Chmury Krajowej sp. z o.o. | – | – | 12 | 852 |
| Total joint ventures and associates | 100 | 45 | 151 | 886 |
| For the period ended 31.12.2021 Company name |
Total income | of which interest and commission income | Total expense | of which interest and commission income |
| Centrum Elektronicznych Usług Płatniczych eService sp. z o.o. | 698 | 588 | 106 | 105 |
| „Centrum Obsługi Biznesu” sp. z o.o. | – | – | 24 | – |
| Total joint ventures and associates | 698 | 588 | 130 | 105 |
Related-party transactions – personal links
As at 31 December 2022, ten entities were related to the Group through the key management personnel of PKO Bank Polski S.A. or close family members of the key management personnel. As at 31 December 2021, it was thirteen entities. In 2022 and in 2021, no transactions were conducted between the Group and those entities.