76. Government grants

The Group recognises government grants received when there is reasonable assurance that the Group will meet the conditions associated with the government grants and the government grants will be received. The Group considers the receipt of grant funding on the basis of a payment application verified by the grantor institution to be sufficient assurance of receipt of the government grant.

The Group recognises government grants received for assets as a reduction in the carrying value of the tangible or intangible assets for which it received such grants and recognises them in profit or loss: over the useful life of the tangible or intangible assets subject to depreciation through reduced depreciation.

Grants received to income are recognized by the Group as a reduction of the costs for which it has received these grants:

• systematically in the periods in which it recognizes the costs for which the grant is received, from the accruals in which the grant was recognized when received,
• on a one-off basis in the period in which the grant is received and relates to expenditure already

In 2022, the Group received grants for costs incurred in connection with publicly funded research and development projects through the National Research and Development Centre. The disbursement of funds was based on the financial assistance granted in connection with the agreements concluded between the Bank and the National Centre for Research and Development. In 2022, the amount of the grant was PLN 7 million (2021: PLN 6 million).