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Consolidated income statement for the year ended 31 December
Note 2018 2017
[IFRS International Financial Reporting Standards and their interpretations approved by the International Accounting Standards Board.International Financial Reporting Standards and their interpretations approved by the International Accounting Standards Board. 9] [IAS 39-non-transformed data]
Interest income, including: 2
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Note 2. Net interest income
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Interest income, including: 4 673.8 4 237.5
Interest income calculated using effective interest rate method, including: 4 668.5 n/a
interest on loans and receivables to other banks measured at amortised cost 36.4 56.2
interest on loans and receivables to customers measured at amortised cost 3 955.7 3 537.1
interest on securities measured at amortised cost 280.6 n/a
interest on securities measured at fair value through other comprehensive income 395.8 n/a
interest on financial assets available-for-sale n/a 436.7
interest on financial assets held-to-maturity n/a 207.5
Other interest income, including: 5.3 n/a
interest on loans and receivables to other banks measured at fair value through profit or loss 5.3 n/a
Interest expense, including: 914.5 848.1
interest on deposits from other banks 58.3 60.9
interest on deposits from customers 835.5 752.8
interest on issue of debt securities 7.6 21.9
interest on subordinated liabilities 13.1 12.5
Net interest income 3 759.3 3 389.4
4 673.8 4 237.5
Interest income calculated using effective interest rate method 4 668.5 n/a
Other interest income 5.3 n/a
Interest expenses 2
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Note 2. Net interest income
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Interest income, including: 4 673.8 4 237.5
Interest income calculated using effective interest rate method, including: 4 668.5 n/a
interest on loans and receivables to other banks measured at amortised cost 36.4 56.2
interest on loans and receivables to customers measured at amortised cost 3 955.7 3 537.1
interest on securities measured at amortised cost 280.6 n/a
interest on securities measured at fair value through other comprehensive income 395.8 n/a
interest on financial assets available-for-sale n/a 436.7
interest on financial assets held-to-maturity n/a 207.5
Other interest income, including: 5.3 n/a
interest on loans and receivables to other banks measured at fair value through profit or loss 5.3 n/a
Interest expense, including: 914.5 848.1
interest on deposits from other banks 58.3 60.9
interest on deposits from customers 835.5 752.8
interest on issue of debt securities 7.6 21.9
interest on subordinated liabilities 13.1 12.5
Net interest income 3 759.3 3 389.4
914.5 848.1
Net interest income 2
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Note 2. Net interest income
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Interest income, including: 4 673.8 4 237.5
Interest income calculated using effective interest rate method, including: 4 668.5 n/a
interest on loans and receivables to other banks measured at amortised cost 36.4 56.2
interest on loans and receivables to customers measured at amortised cost 3 955.7 3 537.1
interest on securities measured at amortised cost 280.6 n/a
interest on securities measured at fair value through other comprehensive income 395.8 n/a
interest on financial assets available-for-sale n/a 436.7
interest on financial assets held-to-maturity n/a 207.5
Other interest income, including: 5.3 n/a
interest on loans and receivables to other banks measured at fair value through profit or loss 5.3 n/a
Interest expense, including: 914.5 848.1
interest on deposits from other banks 58.3 60.9
interest on deposits from customers 835.5 752.8
interest on issue of debt securities 7.6 21.9
interest on subordinated liabilities 13.1 12.5
Net interest income 3 759.3 3 389.4
3 759.3 3 389.4
Commission income 3
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Note 3. Net commission income
2018 2017
Commission income, including
transaction margin on currency exchange transactions 363.2 343.1
account maintenance fees 286.9 277.9
lending commissions 297.5 263.4
payment and credit cards fees 116.0 113.3
participation units distribution fees 99.6 101.4
insurance product offering commissions 91.5 67.7
factoring and lease agreements commissions 57.5 49.1
brokerage activity fees 21.4 24.0
fiduciary and custodian fees 29.3 28.5
foreign commercial business 35.1 29.7
agency in financial instruments transactions 13.4 10.1
other 48.8 34.9
Total comission income 1 460.2 1 343.1
Commission expenses
commission paid on intermediation in selling deposit products 45.7 42.2
brokerage activity fees 14.9 13.1
commission paid on disclosing credit information 16.2 15.7
commission paid on cash handling services 13.6 12.9
electronic banking services fees 12.7 9.7
commission paid on trading in securities 8.4 10.2
costs of the National Clearing House (KIR) 10.1 9.1
agency in financial instruments transactions 7.5 10.7
lease agreements fees 1.0 0.5
other 25.2 23.0
Total commision expenses 155.3 147.1
Net commission income 1 304.9 1 196.0
1 460.2 1 343.1
Commission expenses 3
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Note 3. Net commission income
2018 2017
Commission income, including
transaction margin on currency exchange transactions 363.2 343.1
account maintenance fees 286.9 277.9
lending commissions 297.5 263.4
payment and credit cards fees 116.0 113.3
participation units distribution fees 99.6 101.4
insurance product offering commissions 91.5 67.7
factoring and lease agreements commissions 57.5 49.1
brokerage activity fees 21.4 24.0
fiduciary and custodian fees 29.3 28.5
foreign commercial business 35.1 29.7
agency in financial instruments transactions 13.4 10.1
other 48.8 34.9
Total comission income 1 460.2 1 343.1
Commission expenses
commission paid on intermediation in selling deposit products 45.7 42.2
brokerage activity fees 14.9 13.1
commission paid on disclosing credit information 16.2 15.7
commission paid on cash handling services 13.6 12.9
electronic banking services fees 12.7 9.7
commission paid on trading in securities 8.4 10.2
costs of the National Clearing House (KIR) 10.1 9.1
agency in financial instruments transactions 7.5 10.7
lease agreements fees 1.0 0.5
other 25.2 23.0
Total commision expenses 155.3 147.1
Net commission income 1 304.9 1 196.0
155.3 147.1
Net commission income 3
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Note 3. Net commission income
2018 2017
Commission income, including
transaction margin on currency exchange transactions 363.2 343.1
account maintenance fees 286.9 277.9
lending commissions 297.5 263.4
payment and credit cards fees 116.0 113.3
participation units distribution fees 99.6 101.4
insurance product offering commissions 91.5 67.7
factoring and lease agreements commissions 57.5 49.1
brokerage activity fees 21.4 24.0
fiduciary and custodian fees 29.3 28.5
foreign commercial business 35.1 29.7
agency in financial instruments transactions 13.4 10.1
other 48.8 34.9
Total comission income 1 460.2 1 343.1
Commission expenses
commission paid on intermediation in selling deposit products 45.7 42.2
brokerage activity fees 14.9 13.1
commission paid on disclosing credit information 16.2 15.7
commission paid on cash handling services 13.6 12.9
electronic banking services fees 12.7 9.7
commission paid on trading in securities 8.4 10.2
costs of the National Clearing House (KIR) 10.1 9.1
agency in financial instruments transactions 7.5 10.7
lease agreements fees 1.0 0.5
other 25.2 23.0
Total commision expenses 155.3 147.1
Net commission income 1 304.9 1 196.0
1 304.9 1 196.0
Net income on financial instruments at fair value through profit or loss and FX result 4
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Note 4. Net income on financial instruments at fair value through profit or loss and FX result
2018 2017
FX result and net income on interest rate derivatives, including: 35.7 78.9
FX result 114.6 57.9
currency derivatives -78.9 21.0
Net income on interest rate derivatives 36.1 3.4
Net income on debt instruments held for trading 19.0 36.5
Result on measurement of loans to customers which are measured at fair value through profit or loss 0.1 0.0
Net income on financial instruments at fair value through profit or loss and FX result 90.9 118.8
90.9 118.8
Net income on the sale of securities measured at amortised cost 5
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Note 5. Net income on the sale of securities and dividend income / Net income on investments
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Net income on the sale of securities measured at amortised cost 1.0 n/a
Net income on sale of securities measured at fair value through other comprehensive income and dividend income, including: 54.3 n/a
sale of debt securities 48.0 n/a
dividend income 6.3 n/a
Net income on investments, including: n/a 46.6
sale of debt instruments n/a 28.0
sale of equity instruments n/a 12.3
dividend income n/a 6.3
1.0 n/a
Net income on the sale of securities measured at fair value through other comprehensive income and dividend income 5
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Note 5. Net income on the sale of securities and dividend income / Net income on investments
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Net income on the sale of securities measured at amortised cost 1.0 n/a
Net income on sale of securities measured at fair value through other comprehensive income and dividend income, including: 54.3 n/a
sale of debt securities 48.0 n/a
dividend income 6.3 n/a
Net income on investments, including: n/a 46.6
sale of debt instruments n/a 28.0
sale of equity instruments n/a 12.3
dividend income n/a 6.3
54.3 n/a
Net income on investments 5
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Note 5. Net income on the sale of securities and dividend income / Net income on investments
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Net income on the sale of securities measured at amortised cost 1.0 n/a
Net income on sale of securities measured at fair value through other comprehensive income and dividend income, including: 54.3 n/a
sale of debt securities 48.0 n/a
dividend income 6.3 n/a
Net income on investments, including: n/a 46.6
sale of debt instruments n/a 28.0
sale of equity instruments n/a 12.3
dividend income n/a 6.3
n/a 46.6
Net income on hedge accounting 6
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Note 6. Net income on hedge accounting
2018 2017
Fair value hedge accounting for securities: 10.9 17.0
valuation of the hedged transaction 129.5 -99.2
valuation of the hedging transaction -118.6 116.2
Cash flow hedge accounting: -3.0 -1.7
ineffectiveness under cash flow hedges -3.0 -1.7
Net income on hedge accounting 7.9 15.3
7.9 15.3
Net income on other basic activities 7
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Note 7. Net income on other basic activities
2018 2017
Sale of other services 16.1 10.5
Net income on disposal of property, plant and equipment and intangible assets -1.6 -0.6
Banking activity-related compensations and losses -5.4 -3.6
Other 5.3 -3.3
Total 14.4 3.0
14.4 3.0
Net income on basic activities 5 232.7 4 769.1
General and administrative expenses 8
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Note 8. General and administrative expenses
2018 2017
Personnel expenses, including: 1 104.7 1 035.7
wages and salaries, including: 902.4 857.7
variable remuneration programme 33.3 42.4
ING Group’s incentive programme 0.3 1.0
retirement benefits 3.6 2.7
employee benefits 202.3 178.0
Cost of marketing and promotion 118.1 106.9
Depreciation and amortisation, including: 193.5 182.3
on property, plant and equipment 117.1 109.1
on intangible assets 76.4 73.2
Other general and administrative expenses, including: 910.5 810.9
IT costs 196.2 166.2
communication costs 51.1 43.0
transport and representation costs 46.7 44.6
maintenance, refurbishment and rental of buildings 197.2 204.5
obligatory Bank Guarantee Fund payments 165.2 145.7
advisory and legal services, audit costs 91.8 80.8
donations 3.9 5.7
disputed claims 12.0 3.7
other 146.4 116.7
Razem 2 326.8 2 135.8
2 326.8 2 135.8
Impairment for expected losses 9
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Note 9. Impairment for expected losses / Impairment losses and provisions for off-balance sheet liabilities
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Investment securities 4.7 1.2
at fair value through other comprehensive income 3.2 n/a
measured at amortized cost 1.5 n/a
held to maturity n/a 1.2
Loans and other receivables measured at amortized cost 481.4 400.5
corporate banking 217.9 241.2
including corporate and municipal securities -0.2 -1.0
retail banking 263.5 159.3
Provisions for off-balance sheet liabilities 14.8 19.5
Total 500.9 421.2
500.9 n/a
including profit on sale of receivables 26.7 n/a
Impairment losses and provisions for off-balance sheet liabilities 9
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Note 9. Impairment for expected losses / Impairment losses and provisions for off-balance sheet liabilities
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Investment securities 4.7 1.2
at fair value through other comprehensive income 3.2 n/a
measured at amortized cost 1.5 n/a
held to maturity n/a 1.2
Loans and other receivables measured at amortized cost 481.4 400.5
corporate banking 217.9 241.2
including corporate and municipal securities -0.2 -1.0
retail banking 263.5 159.3
Provisions for off-balance sheet liabilities 14.8 19.5
Total 500.9 421.2
n/a 421.2
Tax on certain financial institutions 371.7 330.1
Share of profit (loss) of associates accounted for using the equity method -0.3 0.0
Gross profit (loss) 2 033.0 1 882.0
Income tax 507.1 478.9
Net profit (loss) 1 525.9 1 403.1
  • attributable to shareholders of ING Bank Śląski S.A.
1 525.9 1 403.1
  • attributable to non-controlling interests
0.0 0.0
Net profit (loss) attributable to shareholders of ING Bank Śląski S.A. 1 525.9 1 403.1
Weighted average number of ordinary shares 130 100 000 130 100 000
Earnings per ordinary share (PLN) 11.73 10.78

The diluted earnings per share are the same as the profit per one ordinary share.

Consolidated income statement for the year ended 31 December
Note 2018 2017
[IFRS 9] [IAS 39-non-transformed data]
Interest income, including: 2
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Note 2. Net interest income EUR
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Interest income, including: 1 095.4 998.3
Interest income calculated using effective interest rate method, including: 1 094.1 n/a
interest on loans and receivables to other banks measured at amortised cost 8.5 13.2
interest on loans and receivables to customers measured at amortised cost 927.1 833.3
interest on securities measured at amortised cost 65.8 n/a
interest on securities measured at fair value through other comprehensive income 92.8 n/a
interest on financial assets available-for-sale n/a 102.9
interest on financial assets held-to-maturity n/a 48.9
Other interest income, including: 1.2 n/a
interest on loans and receivables to other banks measured at fair value through profit or loss 1.2 n/a
Interest expense, including: 214.3 199.8
interest on deposits from other banks 13.7 14.3
interest on deposits from customers 195.8 177.4
interest on issue of debt securities 1.8 5.2
interest on subordinated liabilities 3.1 2.9
Net interest income 881.0 798.5
1 095.4 998.3
Interest income calculated using effective interest rate method 1 094.1 n/a
Other interest income 1.2 n/a
Interest expenses 2
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Note 2. Net interest income EUR
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Interest income, including: 1 095.4 998.3
Interest income calculated using effective interest rate method, including: 1 094.1 n/a
interest on loans and receivables to other banks measured at amortised cost 8.5 13.2
interest on loans and receivables to customers measured at amortised cost 927.1 833.3
interest on securities measured at amortised cost 65.8 n/a
interest on securities measured at fair value through other comprehensive income 92.8 n/a
interest on financial assets available-for-sale n/a 102.9
interest on financial assets held-to-maturity n/a 48.9
Other interest income, including: 1.2 n/a
interest on loans and receivables to other banks measured at fair value through profit or loss 1.2 n/a
Interest expense, including: 214.3 199.8
interest on deposits from other banks 13.7 14.3
interest on deposits from customers 195.8 177.4
interest on issue of debt securities 1.8 5.2
interest on subordinated liabilities 3.1 2.9
Net interest income 881.0 798.5
214.3 199.8
Net interest income 2
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Note 2. Net interest income EUR
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Interest income, including: 1 095.4 998.3
Interest income calculated using effective interest rate method, including: 1 094.1 n/a
interest on loans and receivables to other banks measured at amortised cost 8.5 13.2
interest on loans and receivables to customers measured at amortised cost 927.1 833.3
interest on securities measured at amortised cost 65.8 n/a
interest on securities measured at fair value through other comprehensive income 92.8 n/a
interest on financial assets available-for-sale n/a 102.9
interest on financial assets held-to-maturity n/a 48.9
Other interest income, including: 1.2 n/a
interest on loans and receivables to other banks measured at fair value through profit or loss 1.2 n/a
Interest expense, including: 214.3 199.8
interest on deposits from other banks 13.7 14.3
interest on deposits from customers 195.8 177.4
interest on issue of debt securities 1.8 5.2
interest on subordinated liabilities 3.1 2.9
Net interest income 881.0 798.5
881.0 798.5
Commission income 3
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Note 3. Net commission income EUR
2018 2017
Commission income, including:
transaction margin on currency exchange transactions 85.1 80.8
account maintenance fees 67.2 65.5
lending commissions 69.7 62.1
payment and credit cards fees 27.2 26.7
participation units distribution fees 23.3 23.9
insurance product offering commissions 21.4 15.9
factoring and lease agreements commissions 13.5 11.6
brokerage activity fees 5.0 5.7
fiduciary and custodian fees 6.9 6.7
foreign commercial business 8.2 7.0
agency in financial instruments transactions 3.1 2.4
other 11.4 8.2
Total comission income 342.2 316.4
Commission expenses
commission paid on intermediation in selling deposit products 10.7 9.9
brokerage activity fees 3.5 3.1
commission paid on disclosing credit information 3.8 3.7
commission paid on cash handling services 3.2 3.0
electronic banking services fees 3.0 2.3
commission paid on trading in securities 2.0 2.4
costs of the National Clearing House (KIR) 2.4 2.1
agency in financial instruments transactions 1.8 2.5
lease agreements fees 0.2 0.1
other 5.9 5.4
Total commision expenses 36.4 34.7
Net commission income 305.8 281.8
342.2 316.4
Commission expenses 3
zamknij
Note 3. Net commission income EUR
2018 2017
Commission income, including:
transaction margin on currency exchange transactions 85.1 80.8
account maintenance fees 67.2 65.5
lending commissions 69.7 62.1
payment and credit cards fees 27.2 26.7
participation units distribution fees 23.3 23.9
insurance product offering commissions 21.4 15.9
factoring and lease agreements commissions 13.5 11.6
brokerage activity fees 5.0 5.7
fiduciary and custodian fees 6.9 6.7
foreign commercial business 8.2 7.0
agency in financial instruments transactions 3.1 2.4
other 11.4 8.2
Total comission income 342.2 316.4
Commission expenses
commission paid on intermediation in selling deposit products 10.7 9.9
brokerage activity fees 3.5 3.1
commission paid on disclosing credit information 3.8 3.7
commission paid on cash handling services 3.2 3.0
electronic banking services fees 3.0 2.3
commission paid on trading in securities 2.0 2.4
costs of the National Clearing House (KIR) 2.4 2.1
agency in financial instruments transactions 1.8 2.5
lease agreements fees 0.2 0.1
other 5.9 5.4
Total commision expenses 36.4 34.7
Net commission income 305.8 281.8
36.4 34.7
Net commission income 3
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Note 3. Net commission income EUR
2018 2017
Commission income, including:
transaction margin on currency exchange transactions 85.1 80.8
account maintenance fees 67.2 65.5
lending commissions 69.7 62.1
payment and credit cards fees 27.2 26.7
participation units distribution fees 23.3 23.9
insurance product offering commissions 21.4 15.9
factoring and lease agreements commissions 13.5 11.6
brokerage activity fees 5.0 5.7
fiduciary and custodian fees 6.9 6.7
foreign commercial business 8.2 7.0
agency in financial instruments transactions 3.1 2.4
other 11.4 8.2
Total comission income 342.2 316.4
Commission expenses
commission paid on intermediation in selling deposit products 10.7 9.9
brokerage activity fees 3.5 3.1
commission paid on disclosing credit information 3.8 3.7
commission paid on cash handling services 3.2 3.0
electronic banking services fees 3.0 2.3
commission paid on trading in securities 2.0 2.4
costs of the National Clearing House (KIR) 2.4 2.1
agency in financial instruments transactions 1.8 2.5
lease agreements fees 0.2 0.1
other 5.9 5.4
Total commision expenses 36.4 34.7
Net commission income 305.8 281.8
305.8 281.8
Net income on financial instruments at fair value through profit or loss and FX result 4
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Note 4. Net income on financial instruments at fair value through profit or loss and FX result EUR
2018 2017
FX result and net income on interest rate derivatives, including: 8.4 18.6
FX result 26.9 13.6
currency derivatives -18.5 4.9
Net income on interest rate derivatives 8.5 0.8
Net income on debt instruments held for trading 4.5 8.6
Result on measurement of loans to customers which are measured at fair value through profit or loss 0.0 0.0
Net income on financial instruments at fair value through profit or loss and FX result 21.3 28.0
21.3 28.0
Net income on the sale of securities measured at amortised cost 5
zamknij
5. Net income on the sale of securities and dividend income / Net income on investments EUR
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Net income on the sale of securities measured at amortised cost 0.2 n/a
Net income on sale of securities measured at fair value through other comprehensive income and dividend income, including: 12.7 n/a
sale of debt securities 11.2 n/a
dividend income 1.5 n/a
Net income on investments, including: n/a 11.0
sale of debt instruments n/a 6.6
sale of equity instruments n/a 2.9
dividend income n/a 1.5
0.2 n/a
Net income on the sale of securities measured at fair value through other comprehensive income and dividend income 5
zamknij
5. Net income on the sale of securities and dividend income / Net income on investments EUR
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Net income on the sale of securities measured at amortised cost 0.2 n/a
Net income on sale of securities measured at fair value through other comprehensive income and dividend income, including: 12.7 n/a
sale of debt securities 11.2 n/a
dividend income 1.5 n/a
Net income on investments, including: n/a 11.0
sale of debt instruments n/a 6.6
sale of equity instruments n/a 2.9
dividend income n/a 1.5
12.7 n/a
Net income on investments 5
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5. Net income on the sale of securities and dividend income / Net income on investments EUR
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Net income on the sale of securities measured at amortised cost 0.2 n/a
Net income on sale of securities measured at fair value through other comprehensive income and dividend income, including: 12.7 n/a
sale of debt securities 11.2 n/a
dividend income 1.5 n/a
Net income on investments, including: n/a 11.0
sale of debt instruments n/a 6.6
sale of equity instruments n/a 2.9
dividend income n/a 1.5
n/a 11.0
Net income on hedge accounting 6
zamknij
Note 6. Net income on hedge accounting EUR
2018 2017
Fair value hedge accounting for securities: 2.6 4.0
valuation of the hedged transaction 30.3 -23.4
valuation of the hedging transaction -27.8 27.4
Cash flow hedge accounting: -0.7 -0.4
ineffectiveness under cash flow hedges -0.7 -0.4
Net income on hedge accounting 1.9 3.6
1.9 3.6
Net income on other basic activities 7
zamknij
Note 7. Net income on other basic activities EUR
2018 2017
Sale of other services 3.8 2.5
Net income on disposal of property, plant and equipment and intangible assets -0.4 -0.1
Banking activity-related compensations and losses -1.3 -0.8
Other 1.2 -0.8
Total 3.4 0.7
3.4 0.7
Net income on basic activities 1 226.3 1 123.5
General and administrative expenses 8
zamknij
Note 8. General and administrative expenses EUR
2018 2017
Personnel expenses, including: 258.9 244.0
wages and salaries, including: 211.5 202.1
variable remuneration programme 7.8 10.0
ING Group’s incentive programme 0.1 0.2
retirement benefits 0.8 0.6
employee benefits 47.4 41.9
Cost of marketing and promotion 27.7 25.2
Depreciation and amortisation, including: 45.3 42.9
on property, plant and equipment 27.4 25.7
on intangible assets 17.9 17.2
Other general and administrative expenses, including: 213.4 191.0
IT costs 46.0 39.2
communication costs 12.0 10.1
transport and representation costs 10.9 10.5
maintenance, refurbishment and rental of buildings 46.2 48.2
obligatory Bank Guarantee Fund payments 38.7 34.3
advisory and legal services, audit costs 21.5 19.0
donations 0.9 1.3
disputed claims 2.8 0.9
other 34.3 27.5
Total 545.3 503.2
545.3 503.2
Impairment for expected losses 9
zamknij
Note 9. Impairment for expected losses / Impairment losses and provisions for off-balance sheet liabilities EUR
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Investment securities 1.1 0.3
at fair value through other comprehensive income 0.7 n/a
measured at amortized cost 0.4 n/a
held to maturity n/a 0.3
Loans and other receivables measured at amortized cost 112.8 94.4
corporate banking 51.1 56.8
including corporate and municipal securities 0.0 -0.2
retail banking 61.8 37.5
Provisions for off-balance sheet liabilities 3.5 4.6
Total 117.4 99.2
117.4 n/a
including profit on sale of receivables 6.3 n/a
Impairment losses and provisions for off-balance sheet liabilities 9
zamknij
Note 9. Impairment for expected losses / Impairment losses and provisions for off-balance sheet liabilities EUR
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Investment securities 1.1 0.3
at fair value through other comprehensive income 0.7 n/a
measured at amortized cost 0.4 n/a
held to maturity n/a 0.3
Loans and other receivables measured at amortized cost 112.8 94.4
corporate banking 51.1 56.8
including corporate and municipal securities 0.0 -0.2
retail banking 61.8 37.5
Provisions for off-balance sheet liabilities 3.5 4.6
Total 117.4 99.2
n/a 99.2
Tax on certain financial institutions 87.1 77.8
Share of profit (loss) of associates accounted for using the equity method -0.1 0.0
Gross profit (loss) 476.5 443.4
Income tax 118.8 112.8
Net profit (loss) 357.6 330.6
– attributable to shareholders of ING Bank Śląski S.A. 357.6 330.6
– attributable to non-controlling interests 0.0 0.0
Net profit (loss) attributable to shareholders of ING Bank Śląski S.A 357.6 330.6
Weighted average number of ordinary shares 130 100 000 130 100 000
Earnings per ordinary share (PLN) 2.75 2.54
Consolidated income statement for the year ended 31 December
Note 2018 2017
[IFRS 9] [IAS 39-non-transformed data]
Interest income, including: 2
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Note 2. Net interest income USD
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Interest income, including: 1 290.1 1 131.8
Interest income calculated using effective interest rate method, including: 1 288.7 n/a
interest on loans and receivables to other banks measured at amortised cost 10.0 15.0
interest on loans and receivables to customers measured at amortised cost 1 091.9 944.8
interest on securities measured at amortised cost 77.5 n/a
interest on securities measured at fair value through other comprehensive income 109.3 n/a
interest on financial assets available-for-sale n/a 116.6
interest on financial assets held-to-maturity n/a 55.4
Other interest income, including: 1.5 n/a
interest on loans and receivables to other banks measured at fair value through profit or loss 1.5 n/a
Interest expense, including: 252.4 226.5
interest on deposits from other banks 16.1 16.3
interest on deposits from customers 230.6 201.1
interest on issue of debt securities 2.1 5.8
interest on subordinated liabilities 3.6 3.3
Net interest income 1 037.7 905.3
1 290.1 1 131.8
Interest income calculated using effective interest rate method 1 288.7 n/a
Other interest income 1.5 n/a
Interest expenses 2
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Note 2. Net interest income USD
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Interest income, including: 1 290.1 1 131.8
Interest income calculated using effective interest rate method, including: 1 288.7 n/a
interest on loans and receivables to other banks measured at amortised cost 10.0 15.0
interest on loans and receivables to customers measured at amortised cost 1 091.9 944.8
interest on securities measured at amortised cost 77.5 n/a
interest on securities measured at fair value through other comprehensive income 109.3 n/a
interest on financial assets available-for-sale n/a 116.6
interest on financial assets held-to-maturity n/a 55.4
Other interest income, including: 1.5 n/a
interest on loans and receivables to other banks measured at fair value through profit or loss 1.5 n/a
Interest expense, including: 252.4 226.5
interest on deposits from other banks 16.1 16.3
interest on deposits from customers 230.6 201.1
interest on issue of debt securities 2.1 5.8
interest on subordinated liabilities 3.6 3.3
Net interest income 1 037.7 905.3
252.4 226.5
Net interest income 2
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Note 2. Net interest income USD
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Interest income, including: 1 290.1 1 131.8
Interest income calculated using effective interest rate method, including: 1 288.7 n/a
interest on loans and receivables to other banks measured at amortised cost 10.0 15.0
interest on loans and receivables to customers measured at amortised cost 1 091.9 944.8
interest on securities measured at amortised cost 77.5 n/a
interest on securities measured at fair value through other comprehensive income 109.3 n/a
interest on financial assets available-for-sale n/a 116.6
interest on financial assets held-to-maturity n/a 55.4
Other interest income, including: 1.5 n/a
interest on loans and receivables to other banks measured at fair value through profit or loss 1.5 n/a
Interest expense, including: 252.4 226.5
interest on deposits from other banks 16.1 16.3
interest on deposits from customers 230.6 201.1
interest on issue of debt securities 2.1 5.8
interest on subordinated liabilities 3.6 3.3
Net interest income 1 037.7 905.3
1 037.7 905.3
Commission income 3
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Note 3. Net commission income USD
2018 2017
Commission income, including:
transaction margin on currency exchange transactions 100.3 91.6
account maintenance fees 79.2 74.2
lending commissions 82.1 70.4
payment and credit cards fees 32.0 30.3
participation units distribution fees 27.5 27.1
insurance product offering commissions 25.3 18.1
factoring and lease agreements commissions 15.9 13.1
brokerage activity fees 5.9 6.4
fiduciary and custodian fees 8.1 7.6
foreign commercial business 9.7 7.9
agency in financial instruments transactions 3.7 2.7
other 13.5 9.3
Total comission income 403.1 358.7
Commission expenses
commission paid on intermediation in selling deposit products 12.6 11.3
brokerage activity fees 4.1 3.5
commission paid on disclosing credit information 4.5 4.2
commission paid on cash handling services 3.8 3.4
electronic banking services fees 3.5 2.6
commission paid on trading in securities 2.3 2.7
costs of the National Clearing House (KIR) 2.8 2.4
agency in financial instruments transactions 2.1 2.9
lease agreements fees 0.3 0.1
other 7.0 6.1
Total commision expenses 42.9 39.3
Net commission income 360.2 319.5
403.1 358.7
Commission expenses 3
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Note 3. Net commission income USD
2018 2017
Commission income, including:
transaction margin on currency exchange transactions 100.3 91.6
account maintenance fees 79.2 74.2
lending commissions 82.1 70.4
payment and credit cards fees 32.0 30.3
participation units distribution fees 27.5 27.1
insurance product offering commissions 25.3 18.1
factoring and lease agreements commissions 15.9 13.1
brokerage activity fees 5.9 6.4
fiduciary and custodian fees 8.1 7.6
foreign commercial business 9.7 7.9
agency in financial instruments transactions 3.7 2.7
other 13.5 9.3
Total comission income 403.1 358.7
Commission expenses
commission paid on intermediation in selling deposit products 12.6 11.3
brokerage activity fees 4.1 3.5
commission paid on disclosing credit information 4.5 4.2
commission paid on cash handling services 3.8 3.4
electronic banking services fees 3.5 2.6
commission paid on trading in securities 2.3 2.7
costs of the National Clearing House (KIR) 2.8 2.4
agency in financial instruments transactions 2.1 2.9
lease agreements fees 0.3 0.1
other 7.0 6.1
Total commision expenses 42.9 39.3
Net commission income 360.2 319.5
42.9 39.3
Net commission income 3
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Note 3. Net commission income USD
2018 2017
Commission income, including:
transaction margin on currency exchange transactions 100.3 91.6
account maintenance fees 79.2 74.2
lending commissions 82.1 70.4
payment and credit cards fees 32.0 30.3
participation units distribution fees 27.5 27.1
insurance product offering commissions 25.3 18.1
factoring and lease agreements commissions 15.9 13.1
brokerage activity fees 5.9 6.4
fiduciary and custodian fees 8.1 7.6
foreign commercial business 9.7 7.9
agency in financial instruments transactions 3.7 2.7
other 13.5 9.3
Total comission income 403.1 358.7
Commission expenses
commission paid on intermediation in selling deposit products 12.6 11.3
brokerage activity fees 4.1 3.5
commission paid on disclosing credit information 4.5 4.2
commission paid on cash handling services 3.8 3.4
electronic banking services fees 3.5 2.6
commission paid on trading in securities 2.3 2.7
costs of the National Clearing House (KIR) 2.8 2.4
agency in financial instruments transactions 2.1 2.9
lease agreements fees 0.3 0.1
other 7.0 6.1
Total commision expenses 42.9 39.3
Net commission income 360.2 319.5
360.2 319.5
Net income on financial instruments at fair value through profit or loss and FX result 4
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Note 4. Net income on financial instruments at fair value through profit or loss and FX result USD
2018 2017
FX result and net income on interest rate derivatives, including: 9.9 21.1
FX result 31.6 15.5
currency derivatives -21.8 5.6
Net income on interest rate derivatives 10.0 0.9
Net income on debt instruments held for trading 5.2 9.7
Result on measurement of loans to customers which are measured at fair value through profit or loss 0.0 0.0
Net income on financial instruments at fair value through profit or loss and FX result 25.1 31.7
25.1 31.7
Net income on the sale of securities measured at amortised cost 5
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5. Net income on the sale of securities and dividend income / Net income on investments USD
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Net income on the sale of securities measured at amortised cost 0.3 n/a
Net income on sale of securities measured at fair value through other comprehensive income and dividend income, including: 15.0 n/a
sale of debt securities 13.2 n/a
dividend income 1.7 n/a
Net income on investments, including: n/a 12.4
sale of debt instruments n/a 7.5
sale of equity instruments n/a 3.3
dividend income n/a 1.7
0.3 n/a
Net income on the sale of securities measured at fair value through other comprehensive income and dividend income 5
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5. Net income on the sale of securities and dividend income / Net income on investments USD
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Net income on the sale of securities measured at amortised cost 0.3 n/a
Net income on sale of securities measured at fair value through other comprehensive income and dividend income, including: 15.0 n/a
sale of debt securities 13.2 n/a
dividend income 1.7 n/a
Net income on investments, including: n/a 12.4
sale of debt instruments n/a 7.5
sale of equity instruments n/a 3.3
dividend income n/a 1.7
15.0 n/a
Net income on investments 5
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5. Net income on the sale of securities and dividend income / Net income on investments USD
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Net income on the sale of securities measured at amortised cost 0.3 n/a
Net income on sale of securities measured at fair value through other comprehensive income and dividend income, including: 15.0 n/a
sale of debt securities 13.2 n/a
dividend income 1.7 n/a
Net income on investments, including: n/a 12.4
sale of debt instruments n/a 7.5
sale of equity instruments n/a 3.3
dividend income n/a 1.7
n/a 12.4
Net income on hedge accounting 6
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Note 6. Net income on hedge accounting USD
2018 2017
Fair value hedge accounting for securities: 3.0 4.5
valuation of the hedged transaction 35.7 -26.5
valuation of the hedging transaction -32.7 31.0
Cash flow hedge accounting: -0.8 -0.5
ineffectiveness under cash flow hedges -0.8 -0.5
Net income on hedge accounting 2.2 4.1
2.2 4.1
Net income on other basic activities 7
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Note 7. Net income on other basic activities USD
2018 2017
Sale of other services 4.4 2.8
Net income on disposal of property, plant and equipment and intangible assets -0.4 -0.2
Banking activity-related compensations and losses -1.5 -1.0
Other 1.5 -0.9
Total 4.0 0.8
4.0 0.8
Net income on basic activities 1 444.4 1 273.8
General and administrative expenses 8
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Note 8. General and administrative expenses USD
2018 2017
Personnel expenses, including: 304.9 276.6
wages and salaries, including: 249.1 229.1
variable remuneration programme 9.2 11.3
ING Group’s incentive programme 0.1 0.3
retirement benefits 1.0 0.7
employee benefits 55.8 47.5
Cost of marketing and promotion 32.6 28.6
Depreciation and amortisation, including: 53.4 48.7
on property, plant and equipment 32.3 29.1
on intangible assets 21.1 19.6
Other general and administrative expenses, including: 251.3 216.6
IT costs 54.2 44.4
communication costs 14.1 11.5
transport and representation costs 12.9 11.9
maintenance, refurbishment and rental of buildings 54.4 54.6
obligatory Bank Guarantee Fund payments 45.6 38.9
advisory and legal services, audit costs 25.3 21.6
donations 1.1 1.5
disputed claims 3.3 1,0
other 40.4 31.2
Total 642.3 570.5
642.3 570.5
Impairment for expected losses 9
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Note 9. Impairment for expected losses / Impairment losses and provisions for off-balance sheet liabilities USD
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Investment securities 1.3 0.3
at fair value through other comprehensive income 0.9 n/a
measured at amortized cost 0.4 n/a
held to maturity n/a 0.3
Loans and other receivables measured at amortized cost 132.9 107.0
corporate banking 60.1 64.4
including corporate and municipal securities -0.1 -0.3
retail banking 72.7 42.5
Provisions for off-balance sheet liabilities 4.1 5.2
Total 138.3 112.5
138.3 n/a
including profit on sale of receivables 7.4 n/a
Impairment losses and provisions for off-balance sheet liabilities 9
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Note 9. Impairment for expected losses / Impairment losses and provisions for off-balance sheet liabilities USD
2018 2017
[IFRS 9] [IAS 39 – non-transformed data]
Investment securities 1.3 0.3
at fair value through other comprehensive income 0.9 n/a
measured at amortized cost 0.4 n/a
held to maturity n/a 0.3
Loans and other receivables measured at amortized cost 132.9 107.0
corporate banking 60.1 64.4
including corporate and municipal securities -0.1 -0.3
retail banking 72.7 42.5
Provisions for off-balance sheet liabilities 4.1 5.2
Total 138.3 112.5
n/a 112.5
Tax on certain financial institutions 102.6 88.2
Share of profit (loss) of associates accounted for using the equity method -0.1 0.0
Gross profit (loss) 561.2 502.7
Income tax 140.0 127.9
Net profit (loss) 421.2 374.8
– attributable to shareholders of ING Bank Śląski S.A 421.2 374.8
– attributable to non-controlling interests 0.0 0.0
Net profit (loss) attributable to shareholders of ING Bank Śląski S.A. 421.2 374.8
Weighted average number of ordinary shares 130 100 000 130 100 000
Earnings per ordinary share (PLN) 3.24 2.88

The diluted earnings per share are the same as the profit per one ordinary share.

The Consolidated Income Statement should be read in conjunction with the notes to the consolidated financial statements being the integral part thereof. The full set of notes is available in the Consolidated Financial Statements of ING Bank Śląski S.A. for 2018, which is available in the Download Center.

Basic consolidated income statement figures of the ING Bank Śląski S.A. Group for 2018 and changes vis-à-vis 2017 are presented in the table below.

 Change currency: PLNEURUSD
Basic consolidated income statement figures in analytical terms
2018 2017 2016 2015 2014 Change 2018 / 2017
PLN million PLN million %
Net interest income 3,759.3 3,389.4 2,953.4 2,467.1 2,330.2 369.9 10.9%
Net commission income 1,304.9 1,196.0 1,064.8 1,017.2 1,062.9 108.9 9.1%
One-off income* 0.0 11.9 189.6 100.5 0.0 -11.9 -100.0%
Other revenues** 168.2 171.8 116.7 193.3 151.7 -3.6 -2.1%
Total revenue 5 232.4 4 769.1 4 324.5 3 778.1 3 544.8 463.3 9.7%
Operating expenses 2 326.8 2 135.8 2 099.2 2 155.7 1 929.7 191.0 8.9%
including one-off costs* 0.0 0.0 12.2 163.8 0.0 0.0
Impairment losses and provisions 500.9 421.2 300.6 232.1 267.7 79.7 18.9%
Bank levyA popular name of the tax on certain financial institutions. The monthly tax of 0.0366% (0.44% per year) is collected from the value of assets as at the month-end – upon previous deductions. For banks, the value of assets is reduced by the amount of sovereigns held and own funds of a bank and PLN 4 billion, for example. The banks that have launched rehabilitation proceedings and state-owned banks (BGK – Bank Gospodarstwa Krajowego) are exempted from the tax.A popular name of the tax on certain financial institutions. The monthly tax of 0.0366% (0.44% per year) is collected from the value of assets as at the month-end – upon previous deductions. For banks, the value of assets is reduced by the amount of sovereigns held and own funds of a bank and PLN 4 billion, for example. The banks that have launched rehabilitation proceedings and state-owned banks (BGK – Bank Gospodarstwa Krajowego) are exempted from the tax. 371.7 330.1 280.2 0.0 0.0 41.6 12.6%
Gross financial result 2 033.0 1 882.0 1 644.5 1 390.3 1 347.4 151.0 8.0%
Tax income 507.1 478.9 391.4 263.2 306.6 28.2 5.9%
Net result attributable to non-controlling shareholders 0.0 0.0 0.1 0.1 0.1 0.0
Net financial result 1 525.9 1 403.1 1 253.0 1 127.0 1 040.7 122.8 8.8%
Adjusted net result* 1 525.9 1 393.5 1 109.3 1 162.7 1 040.7 132.4 9.5%

* Income: dividend of PLN 82.1 million from ING PTE in Q2 2015, income of PLN 18.4 million from the disposal of ING PTE shares in Q3 2015 and positive impact of PLN 189.6 million under the Visa Europe transaction in Q2 2016 and positive impact of PLN 11.9 million under the Visa Inc. transaction in Q2 2017; Costs: PLN 157.4 million of extraordinary contribution to BGF stemming from the SK Bank bankruptcy in Q4 2015, PLN 6.4 million of contribution to the Mortgage Support FundA fund to be used by natural persons in a difficult financial situation and required to repay a housing loan.A fund to be used by natural persons in a difficult financial situation and required to repay a housing loan. in Q4 2015 and PLN 12.2 million of extraordinary contribution to BGF under the bankruptcy of the Cooperative Bank in Nadarzyn;

** Including the share in net profits of affiliated entities recognised on an equity basis.

Basic consolidated income statement figures in analytical terms EUR
2018 2017 2016 2015 2014 Change 2018 / 2017
PLN million PLN million %
Net interest income 881.0 798.5 675.0 589.5 556.2 82.5 10.3%
Net commission income 305.8 281.8 243.3 243.1 253.7 24.1 8.5%
One-off income* 0.0 2.8 43.3 24.0 0.0 -2.8 -100.0%
Other revenues** 39.4 40.5 26.7 46.2 36.2 -1.1 -2.6%
Total revenue 1 226.3 1 123.5 988.3 902.8 846.2 102.7 9.1%
Operating expenses 545.3 503.2 479.7 515.1 460.6 42.1 8.4%
including one-off costs* 0.0 0.0 2.8 39.1 0.0 0.0
Impairment losses and provisions 117.4 99.2 68.7 55.5 63.9 18.2 18.3%
Bank levy 87.1 77.8 64.0 0.0 0.0 9.3 12.0%
Gross financial result 476.5 443.4 375.8 332.2 321.6 33.1 7.5%
Income tax 118.8 112.8 89.4 62.9 73.2 6.0 5.3%
Net result attributable to non-controlling shareholders 0.0 0.0 0.0 0.0 0.0 0.0
Net financial result 357.6 330.6 286.4 269.3 248.4 27.1 8.2%
Adjusted net result* 357.6 328.3 253.5 277.8 248.4 29.3 8.9%

* Income: dividend of PLN 82.1 million from ING PTE in Q2 2015, income of PLN 18.4 million from the disposal of ING PTE shares in Q3 2015 and positive impact of PLN 189.6 million under the Visa Europe transaction in Q2 2016 and positive impact of PLN 11.9 million under the Visa Inc. transaction in Q2 2017; Costs: PLN 157.4 million of extraordinary contribution to BGF stemming from the SK Bank bankruptcy in Q4 2015, PLN 6.4 million of contribution to the Mortgage Support Fund in Q4 2015 and PLN 12.2 million of extraordinary contribution to BGF under the bankruptcy of the Cooperative Bank in Nadarzyn;

** Including the share in net profits of affiliated entities recognised on an equity basis.

Basic consolidated income statement figures in analytical terms USD
2018 2017 2016 2015 2014 Change 2018 / 2017
PLN million PLN million %
Net interest income 1 037.7 9053 744.3 650.5 732.1 132.4 14.6%
Net commission income 360.2 319.5 268.3 268.2 333.9 40.7 12.8%
One-off income* 0.0 3.2 47.8 26.5 0.0 -3.2 -100.0%
Other revenues** 46.4 45.9 29.4 51.0 47.7 0.5 1.2%
Total revenue 1 444.3 1 273.8 1 089.8 996.1 1,113.7 170.5 13.4%
Operating expenses 642.3 570.5 529.0 568.4 606.3 71.8 12.6%
including one-off costs* 0.0 0.0 3.1 43.2 0.0 0.0
Impairment losses and provisions 138.3 112.5 75.8 61.2 84.1 25.8 22.9%
Bank levy 102.6 88.2 70.6 0.0 0.0 14.4 16.4%
Gross financial result 561.2 502.7 414.4 366.6 423.3 58.5 11.6%
Income tax 140.0 127.9 98.6 69.4 96.3 12.1 9.4%
Net result attributable to non-controlling shareholders 0.0 0.0 0.0 0.0 0.0 0.0
Net financial result 421.2 374.8 315.8 297.1 327.0 46.4 12.4%
Adjusted net result* 421.2 372.2 279.6 306.6 327.0 49.0 13.2%

* Income: dividend of PLN 82.1 million from ING PTE in Q2 2015, income of PLN 18.4 million from the disposal of ING PTE shares in Q3 2015 and positive impact of PLN 189.6 million under the Visa Europe transaction in Q2 2016 and positive impact of PLN 11.9 million under the Visa Inc. transaction in Q2 2017; Costs: PLN 157.4 million of extraordinary contribution to BGF stemming from the SK Bank bankruptcy in Q4 2015, PLN 6.4 million of contribution to the Mortgage Support Fund in Q4 2015 and PLN 12.2 million of extraordinary contribution to BGF under the bankruptcy of the Cooperative Bank in Nadarzyn;

** Including the share in net profits of affiliated entities recognised on an equity basis.

Profit before tax and net profit

In 2018, the ING Bank Śląski S.A. Group posted the net profit attributable to the shareholders of the parent entity of PLN 1,525.9 million. This is the all-time high result of the BankBank when capitalised means ING Bank Śląski S.A.Bank when capitalised means ING Bank Śląski S.A.. It shows that the net income improved by 8.8% from 2017. As since the beginning of 2018, the BankBank when capitalised means ING Bank Śląski S.A.Bank when capitalised means ING Bank Śląski S.A. has applied, in its financial statements, the equity method to measure investments in its subsidiaries and affiliates, the consolidated net result of the Bank GroupBank Group when capitalised means the ING Bank Śląski S.A. Group.Bank Group when capitalised means the ING Bank Śląski S.A. Group. is the same as the separate net result of the BankBank when capitalised means ING Bank Śląski S.A.Bank when capitalised means ING Bank Śląski S.A..

 Change currency: PLNEURUSD
Profit before tax and net profit of ING Bank Śląski S.A. Group (PLN million)
Profit before tax and net profit of ING Bank Śląski S.A. Group (PLN million)
Profit before tax and net profit of ING Bank Śląski S.A. Group (PLN million)

The result before tax was PLN 2,033.0 million and it went up by 8.0% from 2017. There were no one-off factors in 2018. Whereas, upon eliminating the one-off event (sale of the shares of Visa Inc. of PLN 11.9 million in Q2 2017) from the profit before tax, its recurring level would be PLN 1,870.1 million. Improvement of the 2018 profit before tax by PLN 162.9 million (or 8.7%) y/y was most fuelled by:

  • higher net interest income (up by PLN 369.9 million, or 10.9%) and
  • better net commission income (up by PLN 108.9 million, or 9.1%).

Whereas, the negative factors impacting the 2018 result before tax y/y were:

  • higher operating expenses (up by PLN 191.0 million, or 8.9%),
  • higher expected/impairment losses and provisions (up by PLN 79.7 million, or 18.9%), and
  • higher bank levyA popular name of the tax on certain financial institutions. The monthly tax of 0.0366% (0.44% per year) is collected from the value of assets as at the month-end – upon previous deductions. For banks, the value of assets is reduced by the amount of sovereigns held and own funds of a bank and PLN 4 billion, for example. The banks that have launched rehabilitation proceedings and state-owned banks (BGK – Bank Gospodarstwa Krajowego) are exempted from the tax.A popular name of the tax on certain financial institutions. The monthly tax of 0.0366% (0.44% per year) is collected from the value of assets as at the month-end – upon previous deductions. For banks, the value of assets is reduced by the amount of sovereigns held and own funds of a bank and PLN 4 billion, for example. The banks that have launched rehabilitation proceedings and state-owned banks (BGK – Bank Gospodarstwa Krajowego) are exempted from the tax. (up by 41.6 million, or 12.6%).
 Change currency: PLNEURUSD
Change drivers for result before tax of ING Bank Śląski Group in 2018 (PLN million)
Change drivers for result before tax of ING Bank Śląski Group in 2018 (PLN million)
Change drivers for result before tax of ING Bank Śląski Group in 2018 (PLN million)
 Change currency: PLNEURUSD

In 2018, total income of the ING Bank Śląski S.A. Group attributable to shareholders of the parent entity (including, apart from net profit, other items of income and expenses recognised in equity) stood at PLN 2,205.3 million versus PLN 1,319.1 million in 2017.

Revenue

In 2018, total revenue of the ING Bank Śląski S.A. Group closed with PLN 5,232.4 million. This betokens improvement of PLN 463.3 million (or 9.7%) from 2017, fuelled by a higher net interest income first and foremost. Its share in total revenue went up by 0.8 p.p. y/y to 71.8%.

 Change currency: PLNEURUSD

*including the share in net profits of affiliated entities recognised on an equity basis

*including the share in net profits of affiliated entities recognised on an equity basis

 Change currency: PLNEURUSD

*including the share in net profits of affiliated entities recognised on an equity basis

*including the share in net profits of affiliated entities recognised on an equity basis

In 2018, the retail segmentSimply: natural persons and natural persons running business.Simply: natural persons and natural persons running business. was the main income growth contributor. Its income rose by PLN 301.0 million or 11.2% arriving at PLN 2,979.6 million. As a result, its share in the structure rose by 0.8 p.p. to 56.9%. The income of the corporate segmentSimply: clients of mid and big companies segments and strategic clients.Simply: clients of mid and big companies segments and strategic clients. rose by PLN 162.3 million or 7.8% arriving at PLN 2,252.8 million.

 Change currency: PLNEURUSD

*including the share in net profits of affiliated entities recognised on an equity basis

*including the share in net profits of affiliated entities recognised on an equity basis

 Change currency: PLNEURUSD

*including the share in net profits of affiliated entities recognised on an equity basis

*including the share in net profits of affiliated entities recognised on an equity basis

Net interest income

In 2018, the interest income built up by 10.3% from 2017, mainly in consequence of higher interest on loans and other receivables. On the other hand, interest expenses increased by 7.8% y/y, first and foremost, due to higher costs of liabilities to customers. This led to increase in the net interest result by 10.9% y/y, or by PLN 369.9 million to PLN 3,759.3 million. Despite record low interest rates (reference rate of 1.5%), net interest income went up due to both higher business volumes and improved interest margin.

 Change currency: PLNEURUSD
 Change currency: PLNEURUSD

A growing share of high-margin assets (PLN loans first and foremost) and a higher L/D ratio translated into a higher 2018 interest margin (up by 5 b.p. y/y to 2.93%).

 Change currency: PLNEURUSD
Average base interest rate* in 2018
Segment Total
Retail Corporate
Deposits
PLN 0.75% 0.80% 0.77%
FX 0.04% 0.04% 0.04%
Loans
PLN 4.61% 3.16% 3.94%
FX 0.61% 1.89% 1.76%
including: mortgage loans
PLN 3.60% 3.60%
FX 0.61% 0.61%

* Based on management data.

Net fee and commission income

In 2018, the net fee and commission income of the ING Bank Śląski S.A. Group augmented by PLN 108.9 million or 9.1% from 2017, and settled at PLN 1,304.9 million.

The highest fee and commission income growth was noticed in:

  • granted credit facilities: improvement by PLN 34.1 million, or by 12.9% y/y up to PLN 297.5 million, which was related to record sales volumes of loans;
  • insurance products: up by PLN 23.8 million or 35.2% y/y to PLN 91.5 million, which stemmed from increased sale and wider product offer of the bank in this field;
  • the FX transaction spreads: up by PLN 20.1 million or 5.9% y/y to PLN 363.2 million, which was attributable to higher transaction volumes of both the retail as well as corporate customers.
 Change currency: PLNEURUSD
Net fee and commission income (million)
Net fee and commission income (million)
Net fee and commission income (million)

Other income

In 2018, other income of the Group (including the share in the net result of associates recognised on an equity basis) was PLN 168.2 million and it was lower by PLN 15.5 million compared with the previous year. In 2017, other income was affected by a one-off trade – the BankBank when capitalised means ING Bank Śląski S.A.Bank when capitalised means ING Bank Śląski S.A.BankBank when capitalised means ING Bank Śląski S.A.Bank when capitalised means ING Bank Śląski S.A. sold shares of Visa Inc. In consequence of that transaction settlement, the one-off income was PLN 11.9 million (Q2 2017).

 Change currency: PLNEURUSD
Other income* (million)
Other income* (million)
Other income* (million)

* including the share in net profits of affiliated entities recognised on an equity basis; **dividends of PLN 82.1 million from ING PTE in Q2 2015, income on sale of ING PTE of PLN 18.4 million in Q3 2015; income of PLN 189.6 million under the VISA Europe transaction in Q2 2016 and income of PLN 11.9 million under the Visa Inc. transaction in Q2 2017

Operating expenses

In 2018, the operating expenses of the ING Bank Śląski S.A. Group went up by 8.9% y/y to PLN 2,326.8 million. Costs increase was observed in all main categories, which was connected with the business development. General and administrative expenses increased most (by PLN 80.0 million, or 12.0% y/y). The second biggest increment was observed in personnel expenses (by PLN 69.0 million, or +6.7% y/y). High dynamics of the general and administrative expenses has been related to the research and development projects carried out since 2018, mostly in the area of IT and regulations. Increase in personnel expenses stems from raises in wages and salaries (two pay rise exercises were carried out in 2017 and yet another one in 2018). Employment in the ING Bank Śląski S.A. Group was relatively stable (8,034 FTEs as at 2018 yearend compared to 7,979 FTEs a year earlier).

 Change currency: PLNEURUSD
Operating expenses (million)
Operating expenses (million)
Operating expenses (million)

The operating costs of the retail segmentSimply: natural persons and natural persons running business.Simply: natural persons and natural persons running business. rose by PLN 112.5 million y/y (+8.8%) to PLN 1,385.2 million. The operating costs of the corporate segmentSimply: clients of mid and big companies segments and strategic clients.Simply: clients of mid and big companies segments and strategic clients. rose by PLN 78.5 million y/y (+9.1%) to PLN 941.6 million. As a result, the share of the retail segmentSimply: natural persons and natural persons running business.Simply: natural persons and natural persons running business. in costs decreased by 0.1 p.p. to 59.5% in 2018.