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Integrated Annual Report
of ING Bank Śląski S.A. 2019

Statement of financial position

katowice_ing_01-2020_rk_0210 katowice_ing_01-2020_rk_0210
 Change currency: PLNEURUSD
Consolidated statement of financial position as at 31 December
Note 31.12.2019 31.12.2018 01.01.2018
Assets
Cash in hand and balances with the Central Bank 1 402.9 1 237.4 2 815.2
Loans and other receivables to other banks 14
2019 2018
Current accounts 258.3 378.4
Interbank deposits 74.1 5.0
Loans and advances 204.1 52.6
Placed call deposits 262.1 340.6
Total (gross) 798.6 776.6
Impairment losses / impairment for expected losses, including: -0.1 -0.1
concerning loans and advances -0.1 -0.1
Total (net) 798.5 776.5
798.5 776.5 2 234.5
Financial assets held for trading 15
2019 2018
Valuation of derivatives  554.3 509.0
Other financial assets held for trading, including: 669.9 1 425.9
Debt securities: 498.4 790.5
Treasury bonds 480.6 771.6
European Investment Bank bonds 17.8 18.9
Repo transactions 171.5 635.4
Total 1 224.2 1 934.9
1 224.2 1 934.9 1 503.7
Derivative hedge instruments 851.6 909.6 967.2
Investment securities 18
2019 2018
Stage 1 Stage 1
gross expected credit loss allowance net gross expected credit loss allowance net
Measured at fair value through other comprehensive income (FVOCI), including: 21 248.2 -4.1 21 244.1 20 082.0 -4.7 20 077.3
debt securities, including: 21 137.5 -4.1 21 133.4 19 998.7 -47 19 9940
treasury bonds 18 686.2 -3.8 18 682.4 17 675.0 -4.6 17 670.4
treasury bonds in EUR 982.8 -0.2 982.6 903.1 -0.1 903.0
European Investment Bank bonds 1 021.5 0.0 1 021.5 985.6 0.0 985.6
Austrian government bonds 447.0 -0.1 446.9 435.0 0.0 435.0
equity instruments, including: 110.7 0.0 110.7 83.3 0.0 83.3
Biuro Informacji Kredytowej S.A. 63.8 0.0 63.8 57.7 0.0 57.7
Krajowa Izba Rozliczeniowa S.A. 14.7 0.0 14.7 11.9 0.0 11.9
other 32.2 0.0 32.2 13.7 0.0 13.7
Measured at amortised cost, including: 12 581.9 -1.5 12 580.4 11 862.3 -2.3 11 860.0
debt securities, including: 12 581.9 -1.5 12 580.4 11 862.3 -2.3 11 860.0
treasury bonds 5 963.7 -0.8 5 962.9 5 938.0 -1.3 5 936.7
treasury bonds in EUR 3 273.2 -0.5 3 272.7 3 144.5 -0.8 3 143.7
Bonds of Bank Gospodarstwa Krajowego 508.6 -0.1 508.5 513.0 -0.1 512.9
European Investment Bank bonds 2 606.5 -0.1 2 606.4 2 266.8 -0.1 2 266.7
NBP money market bills 229.9 0.0 229.9 0.0 0.0 0.0
Total 33 830.1 -5.6 33 824.5 31 944.3 -7.0 31 937.3

The value presented in the item equity instruments in the category of assets measured at fair value through other comprehensive income (FVOCI) includes investments in shares issued by entities that are considered to be material from the porspective of the Group’s operations. The approach to the fair value measurement of these instruments is described in the further part of the report in note 37. The fair value. In 2019 the Group received the related revenue in the form of a dividend in the amount of PLN 7.0 million, which was presented in the Consolidated Income Statement in item Net income on the sale of securities measured at fair value through other comprehensive income and dividend income.

In 2019, the Group did not make any sales from the equity portfolio. In 2018, the Group made a sale from the portfolio of equity securities valued at fair value through other comprehensive income of shares of one of the companies and achieved a result on this transaction in the amount of PLN 0.3 million.

33 824.5 31 937.3 29 465.1
Loans and other receivables to customers 20
2019 2018
Measured at amortised cost 118 127.8 102 907.4
Measured at fair value through profit or loss 160.3 218.4
Total (net) 118 288.1 103 125.8

 

2019 2018
gross impairment for expected losses net gross impairment for expected losses net
Portfolio of loans, including: 118 312.3 -2 481.3 115 831.0  104 226.8 -2 270.0 101 956.8
Households 58 524.1 -1 239.2 57 284.9 48 631.3 -1 105.6 47 525.7
Business entities 56 769.0 -1 241.8 55 527.2 52 388.2 -1 164.3 51 223.9
The government and self-government institutions’ sector 3 019.2 -0.3 3 018.9 3 207.3 -0.1 3 207.2
Total (gross), including: 118 312.3 -2 481.3 115 831.0 104 226.8 -2 270.0 101 956.8
Corporate banking segment 63 300.5 -1 355.3 61 945.2 58 863.5 -1 261.5 57 602.0
loans in the current account 10 778.0 -463.0 10 315.0 10 782.9 -460.1 10 322.8
term loans and advances 36 616.6 -791.8 35 824.8 33 243.9 -726.6 32 517.3
leasing receivables 8 073.2 -59.8 8 013.4 7 165.0 -46.9 7 118.1
factoring receivables 5 328.1 -40.1 5 288.0 4 861.9 -27.4 4 834.5
corporate and municipal debt securities 2 504.6 -0.6 2 504.0 2 809.8 -0.5 2 809.3
Retail banking segment 55 011.8 -1 126.0 53 885.8 45 363.3 -1 008.5 44 354.8
mortgages 40 807.0 -209.6 40 597.4 33 371.7 -224.9 33 146.8
loans in the current account 1 382.5 -101.5 1 281.0 1 329.2 -105.8 1 223.4
leasing receivables 1 323.6 -2.3 1 321.3 979.1 -3.6 975.5
other loans and advances 11 498.7 -812.6 10 686.1 9 683.3 -674.2 9 009.1
Other receivables, including: 2 296.8 0.0 2 296.8 950.6 0.0 950.6
complex call deposits 1 598.6 0.0 1 598.6 733.0 0.0 733.0
other receivables 698.2 0.0 698.2 217.6 0.0 217.6
Total 120 609.1 -2 481.3 118 127.8 105 177.4 -2 270.0 102 907.4

 

Quality of loan portfolio

gross impairment for

expected losses

net
Corporate banking segment 63 300.5 -1 355.3 61 945.2
assets in stage 1 56 469.2 -51.7 56 417.5
assets in stage 2 4 257.0 -52.5 4 204.5
assets in stage 3 2 572.8 -1 251.1 1 321.7
including individually significant assets 1 487.10 -721.6 765.5
POCI assets 1.5 0.0 1.5
Retail banking segment 55 011.8 -1 126.0 53 885.8
assets in stage 1 49 309.2 -71.5 49 237.7
assets in stage 2 4 746.6 -396.6 4 350.0
– including CHF-indexed mortgage loans 907.0 -48.5 858.5
assets in stage 3 956.0 -657.9 298.1
– including CHF-indexed mortgage loans 8.9 -4.2 4.7
Total 118 312.3 -2 481.3 115 831.0
Total assets in stage 1 105 778.4 -123.2 105 655.2
Total assets in stage 2 9 003.6 -449.1 8 554.5
Total assets in stage 3 3 528.8 -1 909.0 1 619.8

The Group identifies POCI financial assets whose carrying value as at 31 December 2019 is PLN 1.5 million (PLN 0.0 million as at 31 December 2018). These are exposures due to impaired receivables acquired in connection with the acquisition of SKOK Bieszczadzka in 2017 and exposures that were significantly modified as a result of restructuring, which involved the need to remove the original credit commitment and re-recognition of the asset in the statement of financial position.

In 2019, credit exposures in the amount of PLN 1 144.0 million were subject to modification of contractual cash flows, which did not result in their exclusion and re-recognition of the financial asset.

Modifications to contractual cash flows that do not result in their exclusion and re-recognition of a financial asset, i.e. resulting in the recognition of gains or losses on modifications, result from business premises or credit risk events in the form of forbearance facilities granted to customers. In the event of business premises, the method of determining write-offs for expected credit losses does not change. Granting customers facilities (forbearance) indicates a significant increase in credit risk, resulting in classification to Stage 2, in the case of granting another convenience, classification to Stage 3 follows the principles of estimating impairment losses described in point 14.13. Impairment.

For financial assets where the contractual cash flows have changed during the reporting period, while the corresponding write-down for expected credit losses was valued at an amount equal to the expected lifetime credit loss, the amortized cost before modification was PLN 208.9 million PLN, and the net loss on modification amounted to -1.8 million PLN.

Gross carrying amount at the end of the reporting period, financial assets that have been modified since initial recognition at the time when the write-down for expected credit losses was valued at an amount equal to the expected life-cycle credit loss, and for which the write-off for expected credit losses was during the reporting period, the change to an amount equal to 12 months of expected credit losses as at 31 December 2019 was PLN 25.9 million.

2018 gross impairment for expected losses net
Corporate banking segment 58 863.5 -1 261.5 57 602.0
assets in stage 1 51 733.2 -56.0 51 677.2
assets in stage 2 5 038.9 -62.8 4 976.1
assets in stage 3 2 091.4 -1 142.7 948.7
including individually significant assets 1 589.0 -808.5 780.5
Retail banking segment 45 363.3 -1 008.5 44 354.8
assets in stage 1 38 633.0 -58.2 38 574.8
assets in stage 2 5 916.7 -362.0 5 554.7
– including CHF-indexed mortgage loans 971.0 -17.5 953.5
assets in stage 2 813.6 -588.3 225.3
– including CHF-indexed mortgage loans 10.4 -6.7 3.6
Total 104 226.8 -2 270.0 101 956.8
Total assets in stage 1 90 366.2 -114.2 90 252.0
Total assets in stage 2 10 955.6 -424.8 10 530.8
Total assets in stage 3 2 905.0 -1 731.0 1 174.0
118 288.1 103 125.8 87 274.6
Investments in associates 181.0 1.0 1.3
Property, plant and equipment 956.0 556.1 549.0
Intangible assets 429.9 439.2 431.0
Assets held for sale 3.6 10.9 11.1
Deferred tax assets 445.6 398.2 309.9
Other assets 204.8 486.0 409.2
Total assets 158 610.7 141 812.9 125 971.8
Liabilities
Liabilities to other banks 27
2019 2018
Current accounts 474.9 324.0
Interbank deposits 1 559.5 876.1
Loans received* 3 639.5 3 388.2
Repo transactions 31.1 0.0
Received call deposits 549.2 592.1
Other liabilities 1.9 15.4
Total 6 256.1 5 195.8

* The financing of the long-term leasing contracts in EUR (“the matched funding”) received by the subsidiary ING Lease Polska Sp. z o.o. from ING Bank NV and other banks not related to the Group is presented in item Loans received.

6 256.1 5 195.8 4 109.0
Financial liabilities at fair value through profit or loss 28
2019 2018
Valuation of derivatives 667.2 578.1
Other financial liabilities at fair value through profit or loss, including: 247.9 1 109.5
Book short position in trading securities 167.2 1 024.9
financial liabilities held for trading, including: 80.7 84.6
repo transactions 80.7 84.6
Total 915.1 1 687.6
915.1 1 687.6 1 903.2
Derivative hedge instruments 546.0 611.8 699.2
Liabilities to customers 29
2019 2018
Deposits, including: 128 800.1 115 908.0
Households 87 643.7 78 255.5
Business entities 36 191.2 35 735.0
Government and self-government institutions’ sector 4 965.2 1 917.5
Total (gross), including: 128 800.1 115 908.0
Corporate banking 40 889.3 37 589.9
current accounts 28 415.4 25 478.6
savings accounts 10 937.4 9 969.3
term deposits 1 536.5 2 142.0
Retail banking 87 910.8 78 318.1
current accounts 21 998.5 18 051.2
savings accounts 63 387.7 57 948.1
term deposits 2 524.6 2 318.8
Other liabilities, including: 1 673.4 1 774.5
liabilities under cash collateral 400.1 329.5
other liabilities 1 273.3 1 445.0
call deposits 11.6 8.6
liabilities under repo transactions 0.0 0.0
other liabilities 1 261.7 1 436.4
Total 130 473.5 117 682.5
130 473.5 117 682.5 104 503.3
Liabilities from debt securities issued 30
2019 2018
Liabilities under issue of debt securities, including: 0.0 300.3
Bonds issued by ING Bank Śląski S.A. 0.0 300.3
Mortgage bonds issued by ING Bank Hipoteczny S.A 399.7 0.0
Total 399.7 300.3

As at 31 December 2019, the Group had liabilities arising from the issue of mortgage bonds issued as part of the ING Bank Hipoteczny S.A. covered bond issue program established in 2019. (‘Program”). The purpose of establishing the Program was to create a legal infrastructure under which the Group will be able to issue covered bonds both on the local and foreign market. The funds obtained from the inaugural 5-year “green” issue, carried out under the Program, will be used to refinance PLN mortgage loans of natural persons secured on real estate belonging to 15% of the most energy-efficient buildings in Poland. The issue will be redeemed in October 2024.

As at December 31, 2018, the Group had liabilities arising from the issue of bonds issued under the Program of issuing own debt securities of ING Bank Śląski S.A. The bonds were redeemed in December 2019.

399.7 300.3 300.3
Subordinated liabilities 31

ING Bank Śląski concluded 3 subordinated loan agreements with ING Bank N.V. based in Amsterdam:

  • Agreement concluded on 23 February 2016 for the amount of EUR 150.0 million. By decision of the Polish Financial Supervision Authority of 19 April 2016, the Bank obtained permission to recognize loan amount under Tier 2 capital.
  • Agreement concluded on 30 October 2018 for the amount of EUR 100.0 million. After signing the loan agreement, the Bank applied to the Polish Financial Supervision Authority for permission to recognize the amount of the loan under Tier 2 capital. The permission was obtained on 30 January 2019.
  • Agreement concluded on 30 September 2019 for the amount of EUR 250.0 million. After signing the loan agreement, the Bank applied to the PFSA for permission to classify the loan as Tier 2 capital. The consent was obtained on 28 November 2019.

All loans were loan was granted for 10 years. The Bank has the right to prepay of each loan after the lapse of 5 years, provided the relevant approval of the Polish Financial Supervision Authority (PFSA) is obtained. Interest will be paid quarterly at the 3M EURIBOR rate plus margin (1.66% for the 2019 loan, 1.22% for loan from 2018 and 2.25% for loan from 2016). The financial terms and conditions of the loans were set on an arm’s length basis. ING Bank N.V. is the parent company, holding 75% of shares and votes at the Bank General Meeting.

As at the end of 2019, the carrying amount of the subordinated loans was PLN 2 131.1 million (PLN 1,076.9 million as at the end of 2018).

2 131.1 1 076.9 626.9
Provisions 32
2019 2018
Provision for off-balance sheet liabilities 107.1 78.5
Provision for retirement benefits 55.9 41.4
Provision for disputes 18.1 32.5
Other provisions 24.6
Total 205.7 152.4
205.7 152.4 108.8
Current income tax liabilities 381.3 280.3 232.9
Other liabilities 2 078.9 1 503.7 1 953.9
Total liabilities 143 387.4 128 491.3 114 437.5
Equity
Share capital 130.1 130.1 130.1
Share premium 956.3 956.3 956.3
Accumulated other comprehensive income 1 867.3 1 169.7 494.3
Retained earnings 12 269.6 11 065.5 9 953.6
Equity attributable to shareholders of ING Bank Śląski S.A. 15 223.3 13 321.6 11 534.3
Non-controlling interests 0.0 0.0 0.0
Total equity 15 223.3 13 321.6 11 534.3
Total equity and liabilities 158 610.7 141 812.9 125 971.8
Carrying amount 15 223.3 13 321,6 11 534,3
Number of shares 130 100 000 130 100 000 130 100 000
Carrying amount per share (PLN) 117.01 102.40 88.66

The Consolidated Statement of Financial Position shall be read in conjunction with the notes to consolidated financial statements being the integral part thereof.

as at
Note 31.12.2019 31.12.2018 01.01.2018
Assets
Cash in hand and balances with the Central Bank 329.4 287.8 675.0
Loans and other receivables to other banks 14
2019 2018
Current accounts 60.7 88.0
Interbank deposits 17.4 1.2
Loans and advances 47.9 12.2
Placed call deposits 61.5 79.2
Total (gross) 187.5 180.6
Impairment losses / impairment for expected losses, including: 0.0 0.0
concerning loans and advances 0.0 0.0
Total (net) 187.5 180.6
187.5 180.6 535.7
Financial assets held for trading 15
2019 2018
Valuation of derivatives  130.2 118.4
Other financial assets held for trading, including: 157.3 331.6
Debt securities: 117.0 183.8
Treasury bonds 112.9 179.4
European Investment Bank bonds 4.2 4.4
Repo transactions 40.3 147.8
Total 287.5 450.0
287.5 450.0 360.5
Derivative hedge instruments 200.0 211.5 231.9
Investment securities 18
2019 2018
Stage 1 Stage 1
gross expected credit loss allowance net gross expected credit loss allowance net
Measured at fair value through other comprehensive income (FVOCI), including: 4 989.6 -1.0 4 988.6 4 670.2 -1.1 4 669.1
debt securities, including: 4 963.6 -1.0 4 962.6 4 650.9 -1.1 4 649.8
treasury bonds 4 388.0 -0.9 4 387.1 4 110.5 -1.1 4 109.4
treasury bonds in EUR 230.8 0.0 230.7 210.0 0.0 210.0
European Investment Bank bonds 239.9 0.0 239.9 229.2 0.0 229.2
Austrian government bonds 105.0 0.0 104.9 101.2 0.0 101.2
equity instruments, including: 26.0 0.0 26.0 19.4 0.0 19.4
Biuro Informacji Kredytowej S.A. 15.0 0.0 15.0 13.4 0.0 13.4
Krajowa Izba Rozliczeniowa S.A. 3.5 0.0 3.5 2.8 0.0 2.8
other 7.6 0.0 7.6 3.2 0.0 3.2
Measured at amortised cost, including: 2 954.5 -0.4 2 954.2 2 758.7 -0.5 2 758.1
debt securities, including: 2 954.5 -0.4 2 954.2 2 758.7 -0.5 2 758.1
treasury bonds 1 400.4 -0.2 1 400.2 1 380.9 -0.3 1 380.6
treasury bonds in EUR 768.6 -0.1 768.5 731.3 -0.2 731.1
Bonds of Bank Gospodarstwa     Krajowego 119.4 0.0 119.4 119.3 0.0 119.3
European Investment Bank bonds 612.1 0.0 612.0 527.2 0.0 52.1
NBP money market bills 54.0 0.0 54.0 0.0 0.0 0.0
Total 7 944.1 -1.3 7 942.8 7 428.9 -1.6 7 427.3

The value presented in the item equity instruments in the category of assets measured at fair value through other comprehensive income (FVOCI) includes investments in shares issued by entities that are considered to be material from the porspective of the Group’s operations. The approach to the fair value measurement of these instruments is described in the further part of the report in note 37. The fair value. In 2019 the Group received the related revenue in the form of a dividend in the amount of PLN 7.0 million, which was presented in the Consolidated Income Statement in item Net income on the sale of securities measured at fair value through other comprehensive income and dividend income.

In 2019, the Group did not make any sales from the equity portfolio. In 2018, the Group made a sale from the portfolio of equity securities valued at fair value through other comprehensive income of shares of one of the companies and achieved a result on this transaction in the amount of PLN 0.3 million.

7 942.8 7 427.3 7 064.4
Loans and other receivables to customers 20
2019 2018
Measured at amortised cost 27 739.3 23 932.0
Measured at fair value through profit or loss 37.6 50.8
Total (net) 27 776.9 23 982.7

 

2019 2018
gross impairment for expected losses net gross impairment for expected losses net
Portfolio of loans, including: 27 782.6 -582.7 27 200.0 24 238.8 -527.9 23 710.9
Households 13 742.9 -291.0 13 451.9 11 309.6 -257.1 11 052.5
Business entities 13 330.8 -291.6 13 039.1 12 183.3 -270.8 11 912.5
The government and self-government institutions’ sector 709.0 -0.1 708.9 745.9 0.0 745.9
Total (gross), including: 27 782.6 -582.7 27 200.0 24 238.8 -527.9 23 710.9
Corporate banking segment 14 864.5 -318.3 14 546.2 13 689.2 -293.4 13 395.8
loans in the current account 2 530.9 -108.7 2 422.2 2 507.7 -107.0 2 400.7
term loans and advances 8 598.5 -185.9 8 412.5 7 731.1 -169.0 7 562.2
leasing receivables 1 895.8 -14.0 1 881.7 1 666.3 -10.9 1 655.4
factoring receivables 1 251.2 -9.4 1 241.8 1 130.7 -6.4 1 124.3
corporate and municipal debt securities 588.1 -0.1 588.0 653.4 -0.1 653.3
Retail banking segment 12 918.1 -264.4 12 653.7 10 549.6 -234.5 10 315.1
mortgages 9 582.5 -49.2 9 533.3 7 760.9 -52.3 7 708.6
loans in the current account 324.6 -23.8 300.8 309.1 -24.6 284.5
leasing receivables 310.8 -0.5 310.3 227.7 -0.8 226.9
other loans and advances 2 700.2 -190.8 2 509.4 2 251.9 -156.8 2 095.1
Other receivables, including: 539.3 0.0 539.3 221.1 0.0 221.1
complex call deposits 375.4 0.0 375.4 170.5 0.0 170.5
other receivables 164.0 0.0 164.0 50.6 0.0 50.6
Total 28 322.0 -582.7 27 739.3 24 459.9 -527.9 23 932.0

 

Quality of loan portfolio

2019 gross impairment for expected losses net
Corporate banking segment 14 864.5 -318.3 14 546.2
assets in stage 1 13 260.3 -12.1 13 248.2
assets in stage 2 999.6 -12.3 987.3
assets in stage 3 604.2 -293.8 310.4
including individually significant assets 349.2 -169.4 179.8
POCI assets 0.4 0.0 0.4
Retail banking segment 12 918.1 -264.4 12 653.7
assets in stage 1 11 579.0 -16.8 11 562.2
assets in stage 2 1 114.6 -93.1 1 021.5
– including CHF-indexed mortgage loans 213.0 -11.4 201.6
assets in stage 3 224.5 -154.5 70.0
– including CHF-indexed mortgage loans 2.1 -1.0 1.1
Total 27 782.6 -582.7 27 200.0
Total assets in stage 1 24 839.4 -28.9 24 810.4
Total assets in stage 2 2 114.3 -105.5 2 008.8
Total assets in stage 3 828.6 -448.3 380.4

The Group identifies POCI financial assets whose carrying value as at 31 December 2019 is PLN 1.5 million (PLN 0.0 million as at 31 December 2018). These are exposures due to impaired receivables acquired in connection with the acquisition of SKOK Bieszczadzka in 2017 and exposures that were significantly modified as a result of restructuring, which involved the need to remove the original credit commitment and re-recognition of the asset in the statement of financial position.

In 2019, credit exposures in the amount of PLN 1 144.0 million were subject to modification of contractual cash flows, which did not result in their exclusion and re-recognition of the financial asset.

Modifications to contractual cash flows that do not result in their exclusion and re-recognition of a financial asset, i.e. resulting in the recognition of gains or losses on modifications, result from business premises or credit risk events in the form of forbearance facilities granted to customers. In the event of business premises, the method of determining write-offs for expected credit losses does not change. Granting customers facilities (forbearance) indicates a significant increase in credit risk, resulting in classification to Stage 2, in the case of granting another convenience, classification to Stage 3 follows the principles of estimating impairment losses described in point 14.13. Impairment.

For financial assets where the contractual cash flows have changed during the reporting period, while the corresponding write-down for expected credit losses was valued at an amount equal to the expected lifetime credit loss, the amortized cost before modification was PLN 208.9 million PLN, and the net loss on modification amounted to -1.8 million PLN.

Gross carrying amount at the end of the reporting period, financial assets that have been modified since initial recognition at the time when the write-down for expected credit losses was valued at an amount equal to the expected life-cycle credit loss, and for which the write-off for expected credit losses was during the reporting period, the change to an amount equal to 12 months of expected credit losses as at 31 December 2019 was PLN 25.9 million.

 

2018 gross impairment for

expected losses

net
Corporate banking segment 15 656.4 -335.5 15 320.9
assets in stage 1 13 759.9 -14.9 13 745.0
assets in stage 2 1 340.2 -16.7 1 323.5
assets in stage 3 556.3 -303.9 252.3
including individually significant assets 422.6 -215.0 207.6
Retail banking segment 12 065.7 -268.2 11 797.4
assets in stage 1 10 275.6 -15.5 10 260.1
assets in stage 2 1 573.7 -96.3 1 477.4
– including CHF-indexed mortgage loans 258.3 -4.7 253.6
assets in stage 3 216.4 -156.5 59.9
– including CHF-indexed mortgage loans 2.8 -1.8 1.0
Total 27 722.1 -603.8 27 118.3
assets in stage 1 24 035.5 -30.4 24 005.1
Total assets in stage 2 2 914.0 -113.0 2 801.0
Total assets in stage 3 772.7 -4604 312.3
27 776.9 23 982.7 20 924.6
Investments in associates 42.5 0.2 0.3
Property, plant and equipment 224.5 129.3 131.6
Intangible assets 101.0 102.1 103.3
Assets held for sale 0.8 2.5 2.7
Deferred tax assets 104.6 92.6 74.3
Other assets 48.1 113.0 98.1
Total assets 37 245.7 32 979.7 30 202.5
Liabilities
Liabilities to other banks 27
2019 2018
Current accounts 111.5 75.3
Interbank deposits 366.2 203.7
Loans received* 854.6 788.0
Repo transactions 7.3 0.0
Received call deposits 129.0 137.7
Other liabilities 0.4 3.6
Total 1 469.1 1 208.3

*The financing of the long-term leasing contracts in EUR (“the matched funding”) received by the subsidiary ING Lease Polska Sp. z o.o. from ING Bank NV and other banks not related to the Group is presented in item Loans received.

1 469.1 1 208.3 985.2
Financial liabilities at fair value through profit or loss 28
2019 2018
Valuation of derivatives 156.7 134.4
Other financial liabilities at fair value through profit or loss, including: 58.2 258.0
Book short position in trading securities 39.3 238.3
financial liabilities held for trading, including: 19.0 19.7
repo transactions 19.0 19.7
Total 214.9 392.5
214.9 392.5 456.3
Derivative hedge instruments 128.2 142.3 167.6
Liabilities to customers 29
2019 2018
Deposits, including: 30 245.4 26 955.3
Households 20 580.9 18 199.0
Business entities 8 498.6 8 310.5
Government and self-government institutions’ sector 1 166.0 445.9
Total (gross), including: 30 245.4 26 955.3
Corporate banking 9 601.8 8 741.8
current accounts 6 672.6 5 925.3
savings accounts 2 568.4 2 318.4
term deposits 360.8 498.1
Retail banking 20 643.6 18 213.5
current accounts 5 165.8 4 198.0
savings accounts 14 885.0 13 476.3
term deposits 592.8 539.3
Other liabilities, including: 393.0 412.7
liabilities under cash collateral 94.0 76.6
other liabilities 299.0 336.0
call deposits 2.7 2.0
liabilities under repo transactions 0.0 0.0
other liabilities 296.3 334.0
Total 30 638.4 27 368.0
30 638.4 27 368.0 25 055.3
Liabilities from debt securities issued 30
2019 2018
Liabilities under issue of debt securities, including: 0.0 69.8
Bonds issued by ING Bank Śląski S.A. 0.0 69.8
Mortgage bonds issued by ING Bank Hipoteczny S.A 93.9 0.0
Razem 93.9 69.8

As at 31 December 2019, the Group had liabilities arising from the issue of mortgage bonds issued as part of the ING Bank Hipoteczny S.A. covered bond issue program established in 2019. (‘Program”). The purpose of establishing the Program was to create a legal infrastructure under which the Group will be able to issue covered bonds both on the local and foreign market. The funds obtained from the inaugural 5-year “green” issue, carried out under the Program, will be used to refinance PLN mortgage loans of natural persons secured on real estate belonging to 15% of the most energy-efficient buildings in Poland. The issue will be redeemed in October 2024.

As at December 31, 2018, the Group had liabilities arising from the issue of bonds issued under the Program of issuing own debt securities of ING Bank Śląski S.A. The bonds were redeemed in December 2019.

93.9 69.8 72.0
Subordinated liabilities 31

ING Bank Śląski concluded 3 subordinated loan agreements with ING Bank N.V. based in Amsterdam:

  • Agreement concluded on 23 February 2016 for the amount of EUR 150.0 million. By decision of the Polish Financial Supervision Authority of 19 April 2016, the Bank obtained permission to recognize loan amount under Tier 2 capital.
  • Agreement concluded on 30 October 2018 for the amount of EUR 100.0 million. After signing the loan agreement, the Bank applied to the Polish Financial Supervision Authority for permission to recognize the amount of the loan under Tier 2 capital. The permission was obtained on 30 January 2019.
  • Agreement concluded on 30 September 2019 for the amount of EUR 250.0 million. After signing the loan agreement, the Bank applied to the PFSA for permission to classify the loan as Tier 2 capital. The consent was obtained on 28 November 2019.

All loans were loan was granted for 10 years. The Bank has the right to prepay of each loan after the lapse of 5 years, provided the relevant approval of the Polish Financial Supervision Authority (PFSA) is obtained. Interest will be paid quarterly at the 3M EURIBOR rate plus margin (1.66% for the 2019 loan, 1.22% for loan from 2018 and 2.25% for loan from 2016). The financial terms and conditions of the loans were set on an arm’s length basis. ING Bank N.V. is the parent company, holding 75% of shares and votes at the Bank General Meeting.

As at the end of 2019, the carrying amount of the subordinated loans was PLN 2 131.1 million (PLN 1,076.9 million as at the end of 2018).

500.4 250.4 150.3
Provisions 32
2019 2018
Provision for off-balance sheet liabilities 25.1 18.3
Provision for retirement benefits 13.1 9.6
Provision for disputes 4.3 7.6
Other provisions 5.8
Total 48.3 35.4
48.3 35.4 26.1
Current income tax liabilities 89.5 65.2 55.8
Other liabilities 488.2 349.7 468.5
Total liabilities 33 670.9 29 881.7 27 437.1
Equity
Share capital 30.6 30.3 31.2
Share premium 224.6 222.4 229.3
Accumulated other comprehensive income 438.5 272.0 118.5
Retained earnings 2 881.2 2 573.4 2 386.4
Equity attributable to shareholders of ING Bank Śląski S.A. 3 574.8 3 098.0 2 765.4
Non-controlling interests 0.0 0.0 0.0
Total equity 3 574.8 3 098.0 2 765.4
Total equity and liabilities 37 245.7 32 979.7 30 202.5
Carrying amount 3 574.8 3 098.0 2 765.4
Number of shares 130 100 000 130 100 000 130 100 000
Carrying amount per share (PLN) 27.5 23.8 21.3

The Consolidated Statement of Financial Position shall be read in conjunction with the notes to consolidated financial statements being the integral part thereof.

as at
Note 31.12.2019 31.12.2018 01.01.2018
Assets
Cash in hand and balances with the Central Bank 369.4 329.1 808.7
Loans and other receivables to other banks 14
2019 2018
Current accounts 68.0 100.6
Interbank deposits 19.5 1.3
Loans and advances 53.7 14.0
Placed call deposits 69.0 90.6
Total (gross) 210.3 206.6
Impairment losses / impairment for expected losses, including: 0.0 0.0
concerning loans and advances 0.0 0.0
Total (net) 210.3 206.5
210.3 206.5 641.9
Financial assets held for trading 15
2019 2018
Valuation of derivatives  146.0 135.4
Other financial assets held for trading, including: 176.4 379.3
Debt securities: 131.2 210.3
Treasury bonds 126.6 205.2
European Investment Bank bonds 4.7 5.0
Repo transactions 45.2 169.0
Total 322.4 514.6
322.4 514.6 431.9
Derivative hedge instruments 224.2 241.9 277.8
Investment securities 18
2019 2018
Stage 1 Stage 1
gross expected credit loss allowance net gross expected credit loss allowance net
Measured at fair value through other comprehensive income (FVOCI), including: 5 595.0 -1.1 5 593.9 5 341.4 -1.3 5 340.1
debt securities, including: 5 565.9 -1.1 5 564.8 5 319.2 -1.3 5 318.0
treasury bonds 4 920.4 -1.0 4 919.4 4 701.2 -1.2 4 699.9
treasury bonds in EUR 258.8 -0.1 258.7 240.2 0.0 240.2
European Investment Bank bonds 269.0 0.0 269.0 262.1 0.0 262.1
Austrian government bonds 117.7 0.0 117.7 115.7 0.0 115.7
equity instruments, including: 29.1 0.0 29.1 22.2 0.0 22.2
Biuro Informacji Kredytowej S.A. 16.8 0.0 16.8 15.3 0.0 15.3
Krajowa Izba Rozliczeniowa S.A. 3.9 0.0 3.9 3.2 0.0 3.2
other 8.5 0.0 8.5 3.6 0.0 3.6
Measured at amortised cost, including: 3 313.0 -0.4 3 312.6 3 155.1 -0.6 3 154.5
debt securities, including: 3 313.0 -0.4 3 312.6 3 155.1 -0.6 3 154.5
treasury bonds 1 570.3 -0.2 1 570.1 1 579.4 -0.3 1 579.0
treasury bonds in EUR 861.9 -0.1 861.8 836.4 -0.2 836.2
Bonds of Bank Gospodarstwa     Krajowego 133.9 0.0 133.9 136.4 0.0 136.4
European Investment Bank bonds 686.3 0.0 686.3 602.9 0.0 602.9
NBP money market bills 60.5 0.0 60.5 0.0 0.0 0.0
Total 8 908.0 -1.5 8 906.6 8 496.5 -1.9 8 494.6

The value presented in the item equity instruments in the category of assets measured at fair value through other comprehensive income (FVOCI) includes investments in shares issued by entities that are considered to be material from the porspective of the Group’s operations. The approach to the fair value measurement of these instruments is described in the further part of the report in note 37. The fair value. In 2019 the Group received the related revenue in the form of a dividend in the amount of PLN 7.0 million, which was presented in the Consolidated Income Statement in item Net income on the sale of securities measured at fair value through other comprehensive income and dividend income.

In 2019, the Group did not make any sales from the equity portfolio. In 2018, the Group made a sale from the portfolio of equity securities valued at fair value through other comprehensive income of shares of one of the companies and achieved a result on this transaction in the amount of PLN 0.3 million.

8 906.6 8 494.6 8 463.8
Loans and other receivables to customers 20
2019 2018
Measured at amortised cost 31 105.1 27 371.2
Measured at fair value through profit or loss 42.2 58.1
Total (net) 31 147.3 27 429.3

 

2019 2018
gross impairment for expected losses net gross impairment for expected losses net
Portfolio of loans, including: 31 153.7 -653.4 30 500.3 27 722.1 -603.8 27 118.3
Households 15 410.4 -326.3 15 084.1 12 934.9 -294.1 12 640.8
Business entities 14 948.3 -327.0 14 621.3 13 934.1 -309.7 13 624.5
The government and self-government institutions’ sector 795.0 -0.1 794.9 853.1 0.0 853.0
Total (gross), including: 31 153.7 -653.4 30 500.3 27 722.1 -603.8 27 118.3
Corporate banking segment 16 668.1 -356.9 16 311.2 15 656.4 -335.5 15 320.9
loans in the current account 2 838.0 -121.9 2 716.1 2 868.0 -122.4 2 745.6
term loans and advances 9 641.8 -208.5 9 433.3 8 842.2 -193.3 8 648.9
leasing receivables 2 125.8 -15.7 2 110.1 1 905.7 -12.5 1 893.3
factoring receivables 1 403.0 -10.6 1 392.4 1 293.2 -7.3 1 285.9
corporate and municipal debt securities 659.5 -0.2 659.3 747.3 -0.1 747.2
Retail banking segment 14 485.6 -296.5 14 189.1 12 065.7 -268.2 11 797.4
mortgages 10 745.2 -55.2 10 690.0 8 876.2 -59.8 8 816.3
loans in the current account 364.0 -26.7 337.3 353.5 -28.1 325.4
leasing receivables 348.5 -0.6 347.9 260.4 -1.0 259.5
other loans and advances 3 027.8 -214.0 2 813.8 2 575.6 -179.3 2 396.2
Other receivables, including: 604.8 0.0 604.8 252.8 0.0 252.8
complex call deposits 420.9 0.0 420.9 195.0 0.0 195.0
other receivables 183.8 0.0 183.8 57.9 0.0 57.9
Total 31 758.5 -653.4 31 105.1 27 974.9 -603.8 27 371.2

 

Quality of loan portfolio

2019 gross impairment for expected losses net
Corporate banking segment 16 668.1 -356.9 16 311.2
assets in stage 1 14 869.3 -13.6 14 855.7
assets in stage 2 1 120.9 -13.8 1 107.1
assets in stage 3 677.5 -329.4 348.0
including individually significant assets 391.6 -190.0 201.6
POCI assets 0.4 0.0 0.4
Retail banking segment 14 485.6 -296.5 14 189.1
assets in stage 1 12 984.0 -18.8 12 965.1
assets in stage 2 1 249.9 -104.4 1 145.4
– including CHF-indexed mortgage loans 238.8 -12.8 226.1
assets in stage 3 251.7 -173.2 78.5
– including CHF-indexed mortgage loans 2.3 -1.1 1.2
Total 31 153.7 -653.4 30 500.3
Total assets in stage 1 27 853.3 -32.4 27 820.8
Total assets in stage 2 2 370.8 -118.3 2 252.5
Total assets in stage 3 929.2 -502.7 426.5

The Group identifies POCI financial assets whose carrying value as at 31 December 2019 is PLN 1.5 million (PLN 0.0 million as at 31 December 2018). These are exposures due to impaired receivables acquired in connection with the acquisition of SKOK Bieszczadzka in 2017 and exposures that were significantly modified as a result of restructuring, which involved the need to remove the original credit commitment and re-recognition of the asset in the statement of financial position.

In 2019, credit exposures in the amount of PLN 1 144.0 million were subject to modification of contractual cash flows, which did not result in their exclusion and re-recognition of the financial asset.

Modifications to contractual cash flows that do not result in their exclusion and re-recognition of a financial asset, i.e. resulting in the recognition of gains or losses on modifications, result from business premises or credit risk events in the form of forbearance facilities granted to customers. In the event of business premises, the method of determining write-offs for expected credit losses does not change. Granting customers facilities (forbearance) indicates a significant increase in credit risk, resulting in classification to Stage 2, in the case of granting another convenience, classification to Stage 3 follows the principles of estimating impairment losses described in point 14.13. Impairment.

For financial assets where the contractual cash flows have changed during the reporting period, while the corresponding write-down for expected credit losses was valued at an amount equal to the expected lifetime credit loss, the amortized cost before modification was PLN 208.9 million PLN, and the net loss on modification amounted to -1.8 million PLN.

Gross carrying amount at the end of the reporting period, financial assets that have been modified since initial recognition at the time when the write-down for expected credit losses was valued at an amount equal to the expected life-cycle credit loss, and for which the write-off for expected credit losses was during the reporting period, the change to an amount equal to 12 months of expected credit losses as at 31 December 2019 was PLN 25.9 million.

gross impairment for expected losses net
Corporate banking segment 15 656.4 -335.5 15 320.9
assets in stage 1 13 759.9 -14.9 13 745.0
assets in stage 2 1 340.2 -16.7 1 323.5
assets in stage 3 556.3 -303.9 252.3
including individually significant assets 422.6 -215.0 207.6
Retail banking segment 12 065.7 -268.2 11 797.4
assets in stage 1 10 275.6 -15.5 10 260.1
assets in stage 2 1 573.7 -96.3 1 477.4
– including CHF-indexed mortgage loans 258.3 -4.7 253.6
assets in stage 3 216.4 -156.5 59.9
– including CHF-indexed mortgage loansF 2.8 -1.8 1.0
Total 27 722.1 -603.8 27 118.3
Total assets in stage 1 24 035.5 -30.4 24 005.1
Total assets in stage 2 2 914.0 -113.0 2 801.0
Total assets in stage 3 772.7 -460.4 312.3
31 147.3 27 429.3 25 069.5
Investments in associates 47.7 0.3 0.4
Property, plant and equipment 251.7 147.9 157.7
Intangible assets 113.2 116.8 123.8
Assets held for sale 0.9 2.9 3.2
Deferred tax assets 117.3 105.9 89.0
Other assets 53.9 129.3 117.5
Total assets 41 764.9 37 719.2 36 185.3
Liabilities
Liabilities to other banks 27
2019 2018
Current accounts 125.0 86.2
Interbank deposits 410.6 233.0
Loans received* 958.3 901.2
Repo transactions 8.2 0.0
Received call deposits 144.6 157.5
Other liabilities 0.5 4.1
Total 1 647.3 1 382.0

*The financing of the long-term leasing contracts in EUR (“the matched funding”) received by the subsidiary ING Lease Polska Sp. z o.o. from ING Bank NV and other banks not related to the Group is presented in item Loans received.

1 647.3 1 382.0 1 180.3
Financial liabilities at fair value through profit or loss 28
2019 2018
Valuation of derivatives 175.7 153..8
Other financial liabilities at fair value through profit or loss, including: 65.3 295.1
Book short position in trading securities 44.0 272.6
financial liabilities held for trading, including: 21.2 22.5
repo transactions 21.2 22.5
Total 241.0 4489
241.0 448.9 546.7
Derivative hedge instruments 143.8 162.7 200.8
Liabilities to customers 29
2019 2018
Deposits, including: 33 915.3 30 829.1
Households 23 078.1 20 814.3
Business entities 9 529.8 9 504.7
Government and self-government institutions’ sector 1 307.4 510.0
Total (gross), including: 33 915.3 30 829.1
Corporate banking 10 766.9 9 998.1
current accounts 7 482.3 6 776.8
savings accounts 2 880.0 2 651.6
term deposits 404.6 569.7
Retail banking 23 148.4 20 830.9
current accounts 5 792.6 4 801.2
savings accounts 16 691.1 15 413.0
term deposits 664.8 616.8
Other liabilities, including: 440.6 472.0
liabilities under cash collateral 105.4 87.6
other liabilities 335.3 384.3
call deposits 3.1 2.3
liabilities under repo transactions 0.0 0.0
other liabilities 332.2 382.1
Total 34 355.9 31 301.0
34 355.9 31 301.0 30 018.5
Liabilities from debt securities issued 30
2019 2018
Liabilities under issue of debt securities, including: 0.0 79.9
Bonds issued by ING Bank Śląski S.A. 0.0 79.9
Mortgage bonds issued by ING Bank Hipoteczny S.A 105.2 0.0
Total 105.2 79.9

As at 31 December 2019, the Group had liabilities arising from the issue of mortgage bonds issued as part of the ING Bank Hipoteczny S.A. covered bond issue program established in 2019. (‘Program”). The purpose of establishing the Program was to create a legal infrastructure under which the Group will be able to issue covered bonds both on the local and foreign market. The funds obtained from the inaugural 5-year “green” issue, carried out under the Program, will be used to refinance PLN mortgage loans of natural persons secured on real estate belonging to 15% of the most energy-efficient buildings in Poland. The issue will be redeemed in October 2024.

As at December 31, 2018, the Group had liabilities arising from the issue of bonds issued under the Program of issuing own debt securities of ING Bank Śląski S.A. The bonds were redeemed in December 2019.

105.2 79.9 86.3
Subordinated liabilities 31

ING Bank Śląski concluded 3 subordinated loan agreements with ING Bank N.V. based in Amsterdam:

  • Agreement concluded on 23 February 2016 for the amount of EUR 150.0 million. By decision of the Polish Financial Supervision Authority of 19 April 2016, the Bank obtained permission to recognize loan amount under Tier 2 capital.
  • Agreement concluded on 30 October 2018 for the amount of EUR 100.0 million. After signing the loan agreement, the Bank applied to the Polish Financial Supervision Authority for permission to recognize the amount of the loan under Tier 2 capital. The permission was obtained on 30 January 2019.
  • Agreement concluded on 30 September 2019 for the amount of EUR 250.0 million. After signing the loan agreement, the Bank applied to the PFSA for permission to classify the loan as Tier 2 capital. The consent was obtained on 28 November 2019.

All loans were loan was granted for 10 years. The Bank has the right to prepay of each loan after the lapse of 5 years, provided the relevant approval of the Polish Financial Supervision Authority (PFSA) is obtained. Interest will be paid quarterly at the 3M EURIBOR rate plus margin (1.66% for the 2019 loan, 1.22% for loan from 2018 and 2.25% for loan from 2016). The financial terms and conditions of the loans were set on an arm’s length basis. ING Bank N.V. is the parent company, holding 75% of shares and votes at the Bank General Meeting.

As at the end of 2019, the carrying amount of the subordinated loans was PLN 2 131.1 million (PLN 1,076.9 million as at the end of 2018).

561.2 286.4 180.1
Provisions 32
2019 2018
Provision for off-balance sheet liabilities 28.2 20.9
Provision for retirement benefits 14.7 11.0
Provision for disputes 4.8 8.6
Other provisions 6.5
Total 54.2 40.5
54.2 40.5 31.3
Current income tax liabilities 100.4 74.6 66.9
Other liabilities 547.4 400.0 561.3
Total liabilities 37 756.4 34 175.9 32 872.1
Equity
Share capital 34.3 34.6 37.4
Share premium 251.8 254.4 274.7
Accumulated other comprehensive income 491.7 311.1 142.0
Retained earnings 3 230.8 2 943.2 2 859.2
Equity attributable to shareholders of ING Bank Śląski S.A. 4 008.6 3 543.3 3 313.2
Non-controlling interests 0.0 0.0 0.0
Total equity 4 008.6 3 543.3 3 313.2
Total equity and liabilities 41 764.9 37 719.2 36 185.3
Carrying amount 4 008.6 3 543.3 3 313.2
Number of shares 130 100 000 130 100 000 130 100 000
Carrying amount per share (PLN) 30.8 27.2 25.5

The Consolidated Statement of Financial Position shall be read in conjunction with the notes to consolidated financial statements being the integral part thereof.

Assets

Total assets of ING Bank Śląski S.A. Group amounted to PLN 158.6 billion as at 2019 yearend. It implies they were up by 11.8% against 2018. The main growth factor was the net portfolio of loans and other receivables from Clients, net, which was up PLN 15.2 billion y/y or 14.7% to PLN 118.3 billion. They are also the most important item in the asset structure. On 31 December 2019, they accounted for 74.6% of the Group’s total assets.

 Change currency: PLNEURUSD

An important item in the balance sheet of the Group was also the securities’ portfolio – PLN 34.5 billion (21.7% of assets). The majority of this portfolio consisted of debt securities, including investment assets – PLN 33.8 billion, including PLN 21.2 billion of assets at fair value through other comprehensive income and PLN 12.6 billion of financial assets at amortised cost.

Both retail and corporate net loans and other receivables from Clients increased the closing balance as at 2019 yearend compared to the previous year. The retail segment generated growth of PLN 9.5 billion y/y and the retail segment of PLN 4.3 billion y/y. Consequently the share retail exposures in the structure was up by 2.5 p.p. to the level of 45.6%.

 Change currency: PLNEURUSD

*Loans and other receivables from customers, excluding Eurobonds.

*Loans and other receivables from customers, excluding Eurobonds.

 Change currency: PLNEURUSD

*Loans and other receivables from customers, excluding Eurobonds.

*Loans and other receivables from customers, excluding Eurobonds.

Within the structure of the portfolio of net receivables (excluding Eurobonds by currency, participation of exposures denominated in PLN rose up to 85.0%. This is a consequence of a faster growth of receivables denominated in PLN (by PLN 14.0 billion compared to 2018; +16.1%) than the growth of exposures denominated in foreign currencies (by PLN 1.2 billion y/y; +7.2%).

FX structure of the portfolio of net receivables from customers*

*Loans and other receivables from customers, excluding Eurobond.

 Change currency: PLNEURUSD
The portfolio of net receivables from customers (including Eurobonds)
2019 2018 2017 2016 2015 Change 2019 / 2018
PLN million mln %
At amortised cost 118,127.8 102,907.4 91,108.1 81,979.5 73,874.0 15,220.4 14.8%
At fair value through profit or loss 160.3 218.4 -58.1 -26.6%
Total 118,288.1 103,125.8 91,108.1 81,979.5 73,874.0 15,162.3 14.7%
The portfolio of net receivables from customers (including Eurobonds)
2019 2018 2017 2016 2015 Change 2019 / 2018
PLN million mln %
At amortised cost 27,739.3 23,932.0 21,843.8 18,530.6 17,335.2 3,807.3 15.9%
At fair value through profit or loss 37.6 50.8 -13.1 -25.9%
Total 27,776.9 23,982.7 21,843.8 18,530.6 17,335.2 3,794.2 15.8%
The portfolio of net receivables from customers (including Eurobonds)
2019 2018 2017 2016 2015 Change 2019 / 2018
PLN million mln %
At amortised cost 31,105.1 27,371.2 26,170.7 19,615.6 18,936.7 3,733.9 13.6%
At fair value through profit or loss 42.2 58.1 -15.9 -27.3%
Total 31,147.3 27,429.3 26,170.7 19,615.6 18,936.7 3,718.0 13.6%
 Change currency: PLNEURUSD
The portfolio of net receivables from customers at amortised cost (including Eurobonds)
2019 2018 2017 2016 2015 Change 2019/2018
PLN million PLN million %
Customer loan portfolio, including: 115,831.0 101,956.8 86,817.0 77,633.6 68,312.0 13,874.2 13.6%
Households 57,284.9 47,525.7 39,059.8 32,865.4 27,276.7 9,759.2 20.5%
Business entities 55,527.2 51,223.9 44,909.9 41,352.2 37,149.5 4,303.3 8.4%
Government and self-government institutions’ sector 3,018.9 3,207.2 2,847.3 3,416.0 3,885.8 -188.3 -5.9%
Total, including: 115,831.0 101,956.8 86,817.0 77,633.6 68,312.0 13,874.2 13.6%
Corporate banking 61,945.2 57,602.0 49,935.8 46,520.1 42,374.4 4,343.2 7.5%
Loans in current account 10,315.0 10,322.8 8,920.1 7,278.9 7,100.0 -7.8 -0.1%
Term loans 35,824.8 32,517.3 28,023.2 27,168.8 24,281.2 3,307.5 10.2%
Leasing receivables 8,013.4 7,118.1 5,871.4 5,209.2 4,548.2 895.3 12.6%
Factoring receivables 5,288.0 4,834.5 4,589.0 4,350.4 3,389.4 453.5 9.4%
Debt securities 2,504.0 2,809.3 2,532.1 2,512.8 3,055.6 -305.3 -10.9%
Retail banking 53,885.8 44,354.8 36,881.2 31,113.5 25,937.6 9,531.0 21.5%
Mortgages 40,597.4 33,146.8 27,369.4 23,284.0 18,010.3 7,450.6 22.5%
Overdrafts 1,281.0 1,223.4 1,239.8 1,143.9 1,095.5 57.6 4.7%
Leasing receivables 1,321.3 975,5 688.7 501.4 334.5 345.8 35.4%
Other loans and advances 10,686.1 9,009.1 7,583.3 6,184.2 6,497.3 1,677.0 18.6%
Other receivables, including: 2,296.8 950.6 4,291.1 4,345.9 5,562.0 1,346.2 141.6%
Concerning T-eurobonds 0.0 0.0 3,564.1 3,910.0 3,838.1 0.0
Hedges of call type 1,598.6 733.0 540.1 329.0 180.5 865.6 118.1%
Receivables due to repo transactions 0.0 0.0 19.8 0.0 1,354.4 0.0
Other receivables 698.2 217.6 167.1 106.9 189.0 480.6 220.9%
Total 118,127.8 102,907.4 91,108.1 81,979.5 73,874.0 15,220.4 14.8%
The portfolio of net receivables from customers at amortised cost (including Eurobonds)
2019 2018 2017 2016 2015 Change 2019/2018
PLN million PLN million %
Customer loan portfolio, including: 27,200.0 23,710.9 20,814.9 17,548.3 16,030.0 3,489.1 14.7%
Households 13,451.9 11,052.5 9,364.8 7,428.9 6,400.7 2,399.4 21.7%
Business entities 13,039.1 11,912.5 10,767.4 9,347.2 8,717.5 1,126.6 9.5%
Government and self-government institutions’ sector 708.9 745.9 682.7 772.2 911.8 -36.9 -5.0%
Total, including: 27,200.0 23,710.9 20,814.9 17,548.3 16,030.0 3,489.1 14.7%
Corporate banking 14,546.2 13,395.8 11,972.4 10,515.4 9,943.5 1,150.4 8.6%
Loans in current account 2,422.2 2,400.7 2,138.7 1,645.3 1,666.1 21.6 0.9%
Term loans 8,412.5 7,562.2 6,718.7 6,141.2 5,697.8 850.4 11.2%
Leasing receivables 1,881.7 1,655.4 1,407.7 1,177.5 1,067.3 226.4 13.7%
Factoring receivables 1,241.8 1,124.3 1,100.2 983.4 795.4 117.4 10.4%
Debt securities 588.0 653.3 607.1 568.0 717.0 -65.3 -10.0%
Retail banking 12,653.7 10,315.1 8,842.5 7,032.9 6,086.5 2,338.6 22.7%
Mortgages 9,533.3 7,708.6 6,562.0 5,263.1 4,226.3 1,824.7 23.7%
Overdrafts 300.8 284.5 297.2 258.6 257.1 16.3 5.7%
Leasing receivables 310.3 226.9 165.1 113.3 78.5 83.4 36.8%
Other loans and advances 2,509.4 2,095.1 1,818.1 1,397.9 1,524.7 414.2 19.8%
Other receivables, including: 539.3 221.1 1,028.8 982.3 1,305.2 318.3 144.0%
Concerning T-eurobonds 0.0 0.0 3,564.1 3,910.0 3,838.1 0.0
Hedges of call type 375.4 170.5 129.5 74.4 42.4 204.9 120.2%
Receivables due to repo transactions 0.0 0.0 4.7 0.0 317.8 0.0
Other receivables 164.0 50.6 40.1 24.2 44.4 113.3 224.0%
Total 27,739.3 23,932.0 21,843.8 18,530.6 17,335.2 3,807.3 15.9%
The portfolio of net receivables from customers at amortised cost (including Eurobonds)
2019 2018 2017 2016 2015 Change 2019 / 2018
PLN million PLN million %
Customer loan portfolio, including: 30,500.3 27,118.3 24,938.1 18,575.7 17,511.0 3,382.0 12.5%
Households 15,084.1 12,640.8 11,219.9 7,863.9 6,992.1 2,443.3 19.3%
Business entities 14,621.3 13,624.5 12,900.3 9,894.5 9,522.8 996.8 7.3%
Government and self-government institutions’ sector 794.9 853.0 817.9 817.4 996.1 -58.1 -6.8%
Total, including: 30,500.3 27,118.3 24,938.1 18,575.7 17,511.0 3,382.0 12.5%
Corporate banking 16,311.2 15,320.9 14,344.0 11,131.1 10,862.2 990.3 6.5%
Loans in current account 2,716.1 2,745.6 2,562.3 1,741.7 1,820.0 -29.5 -1.1%
Term loans 9,433.3 8,648.9 8,049.6 6,500.8 6,224.2 784.4 9.1%
Leasing receivables 2,110.1 1,893.3 1,686.6 1,246.4 1,165.9 216.8 11.5%
Factoring receivables 1,392.4 1,285.9 1,318.2 1,040.9 868.8 106.5 8.3%
Debt securities 659.3 747.2 727.3 601.2 783.3 -87.9 -11.8%
Retail banking 14,189.1 11,797.4 10,594.1 7,444.7 6,648.8 2,391.6 20.3%
Mortgages 10,690.0 8,816.3 7,861.8 5,571.3 4,616.7 1,873.7 21.3%
Overdrafts 337.3 325.4 356.1 273.7 280.8 11.9 3.7%
Leasing receivables 347.9 259.5 197.8 120.0 85.7 88.5 34.1%
Other loans and advances 2,813.8 2,396.2 2,178.3 1,479.7 1,665.5 417.6 17.4%
Other receivables, including: 604.8 252.8 1,232.6 1,039.9 1,425.8 351.9 139.2%
Concerning T-eurobonds 0.0 0.0 1,023.8 935.6 983.9 0.0
Hedges of call type 420.9 195.0 155.1 78.7 46.3 226.0 115.9%
Receivables due to repo transactions 0.0 0.0 5.7 0.0 347.2 0.0
Other receivables 183.8 57.9 48.0 25.6 48.4 126.0 217.7%
Total 31,105.1 27,371.2 26,170.7 19,615.6 18,936.7 3,733.9 13.6%

Liabilities and equity

The dominant source of financing of the ING Bank Śląski Group’s operations was Clients’ funds. As at 2019 yearend, liabilities to clients amounted to PLN 130.5 billion, or 82.3% of total liabilities.

The next most important source of financing was equity, which at the end of December 2019 amounted to PLN 15.2 billion and accounted for 9.6% of total liabilities.

 Change currency: PLNEURUSD

The long-term lease contracts in EUR at ING Lease (Polska) are funded with loans received from ING Bank NV, among other things (so-called “matched funding”). The agreement was signed in 2003. The financing limit under the agreement and subsequent annexes totals EUR 900 million. As at the end of 2019, the debt balance was EUR 804 million and CHF 12 million. Funds are disbursed in the form of credit tranches which are disbursed depending on the needs under the lease agreements and cash loan agreements paid out. The funding is paid off in a timely manner, in accordance with the repayment schedules applicable to the credit tranches disbursed.

In addition, in 2016, ING Lease (Polska) signed a credit agreement with the European Investment Bank (EIB). The purpose of the agreement is to finance the EUR lease contracts for mid and big companies, with a tenor of up to 5 years. As at the end of 2019, the debt balance was EUR 24.5 million. In 2019, ING Lease (Polska) did not take out any new funding; it only paid off the credit tranches when due. The credit agreement is secured with Polish T-bonds.

3 n 30 September 2019, our bank took out a subordinated loan of EUR 250 million, and then, on 28 November 2019, it received the consent of the Polish Financial Supervision Authority to incorporate this subordinated loan in the Bank's Tier 2 capital. The loan was granted for 10 years and the Bank is entitled to a premature repayment after 5 years (subject to PFSA's approval). Interest will be paid quarterly at the 3M EURIBOR rate plus a margin of 1.66%.

Additionally, in 2019 ING Bank Hipoteczny carried out the first issue of mortgage bonds worth PLN 400 million (you can read more about it in the text box “First issue of mortgage bonds”). On the other hand, in December 2019, our bank redeemed at maturity a series of INGBS191219 bonds (with a nominal value of PLN 300 million) in adherence to the terms and conditions of the issue.

As at 2019 yearend, deposits and other amounts payable to Clients totalled PLN 130.5 billion, up by 10.9% or PLN 12.8 billion y/y. The increase in deposits was largely fuelled by the retail segment (+PLN 9.6 billion y/y), which enlarged its share in the deposit base up to 67.4% from 66.6% in the previous year.

*Deposits and other liabilities to customers.

*Deposits and other liabilities to customers.

*Deposits and other liabilities to customers.

*Deposits and other liabilities to customers.

 Change currency: PLNEURUSD
Portfolio of liabilities to customers
2019 2018 2017 2016 2015 Change 2019 / 2018
PLN million PLN million %
Deposits, including: 128,800.1 115,908.0 102,849.1 94,048.4 86,463.7 12,892.1 11.1%
Households 87,643.7 78,255.5 67,918.6 63,548.0 58,896.1 9,388.2 12.0%
Business entities 36,191.2 35,735.0 33,156.6 28,759.6 25,948.1 456.2 1.3%
Government and self-government institutions’ sector 4,965.2 1,917.5 1,773.9 1,740.8 1,619.5 3,047.7 158.9%
Total, including: 128,800.1 115,908.0 102,849.1 94,048.4 86,463.7 12,892.1 11.1%
Corporate banking 40,889.3 37,589.9 34,799.5 30,438.9 27,673.4 3,299.4 8.8%
Current accounts 28,415.4 25,478.6 23,605.0 20,094.9 16,563.0 2,936.8 11.5%
Savings accounts 10,937.4 9,969.3 8,553.8 8,608.3 8,355.0 968.1 9.7%
Term deposits 1,536.5 2,142.0 2,640.7 1,735.7 2,755.4 -605.5 -28.3%
Retail banking 87,910.8 78,318.1 68,049.6 63,609.5 58,790.3 9,592.7 12.2%
Current accounts 21,998.5 18,051.2 14,792.0 11,920.7 9,872.2 3,947.3 21.9%
Savings accounts 63,387.7 57,948.1 49,935.0 47,872.3 42,962.0 5,439.6 9.4%
Term deposits 2,524.6 2,318.8 3,322.6 3,816.5 5,956.0 205.8 8.9%
Other liabilities, including: 1,673.5 1,774.5 1,654.2 1,777.0 1,402.3 -101.0 -5.7%
Liabilities under cash collateral 400.1 329.5 274.0 311.2 300.1 70.6 21.4%
Call deposits 11.6 8.6 1.4 64.8 47.5 3.0 34.9%
Repo transactions 0.0 0.0 0.0 0.0 0.0 0.0
         Other liabilities 1,261.7 1,436.4 1,378.8 1,401.0 1,054.7 -174.7 -12.2%
Total 130,473.6 117,682.5 104,503.3 95,825.4 87,866.0 12,791.1 10.9%
Portfolio of liabilities to customers
2019 2018 2017 2016 2015 Change 2019 / 2018
EUR million mln zł %
Deposits, including: 30,245.4 26,955.3 24,658.7 21,258.7 20,289.5 3,290.1 12.2%
Households 20,580.9 18,199.0 16,283.9 14,364.4 13,820.5 2,381.9 13.1%
Business entities 8,498.6 8,310.5 7,949.5 6,500,.8 6,089.0 188.1 2.3%
Government and self-government institutions’ sector 1,166.0 445.9 425.3 393.5 380.0 720.0 161.5%
Total, including: 30,245.4 26,955.3 24,658.7 21,258.7 20,289.5 3,290.1 12.2%
Corporate banking 9,601.8 8,741.8 8,343.4 6,880.4 6,493.8 860.0 9.8%
Current accounts 6,672.6 5,925.3 5,659.4 4,542.2 3,886.7 747.4 12.6%
Savings accounts 2,568.4 2,318.4 2,050.8 1,945.8 1,960.6 249.9 10.8%
Term deposits 360.8 498.1 633.1 392.3 646.6 -137.3 -27.6%
Retail banking 20,643.6 18,213.5 16,315.3 14,378.3 13,795.7 2,430.1 13.3%
Current accounts 5,165.8 4,198.0 3,546.5 2,694.6 2,316.6 967.8 23.1%
Savings accounts 14,885.0 13,476.3 11,972.2 10,821.0 10,081.4 1,408.7 10.5%
Term deposits 592.8 539.3 796.6 862.7 1,397.6 53.6 9.9%
Other liabilities, including: 393.0 412.7 396.6 401.7 329.1 -19.7 -4.8%
Liabilities under cash collateral 94.0 76.6 65.7 70.3 70.4 17.3 22.6%
Repo transactions 0.0 0.0 0.0 0.0 11.1 0.0
Other liabilities 299.0 336.0 330.9 331.3 247.5 -37.0 -11.0%
Total 30,638.4 27,368.0 25,055.3 21,660.4 20,618.6 3,270.4 11.9%
Portfolio of liabilities to customers
2019 2018 2017 2016 2015 Change 2019 / 2018
million mln zł %
Deposits including: 33,915.3 30,829.1 29,543.3 22,503.4 22,163.9 3,086.2 10.0%
Households 23,078.1 20,814.3 19,509.6 15,205.4 15,097.3 2,263.8 10.9%
Business entities 9,529.8 9,504.7 9,524.2 6,881.4 6,651.5 25.0 0.3%
Government and self-government institutions’ sector 1,307.4 510.0 509.6 416.5 415.1 797.4 156.4%
Total including: 33,915.3 30,829.1 29,543.3 22,503.4 22,163.9 3,086.2 10.0%
Corporate banking 10,766.9 9,998.1 9,996.1 7,283.3 7,093.7 768.7 7.7%
Current accounts 7,482.3 6,776.8 6,780.5 4,808.2 4,245.7 705.5 10.4%
Savings accounts 2,880.0 2,651.6 2,457.1 2,059.7 2,141.7 228.4 8.6%
Term deposits 404.6 569.7 758.5 415.3 706.3 -165.1 -29.0%
Retail banking 23,148.4 20,830.9 19,547.2 15,220.1 15,070.2 2,317.5 11.1%
Current accounts 5,792.6 4,801.2 4,249.0 2,852.3 2,530.6 991.4 20.6%
Savings accounts 16,691.1 15,413.0 14,343.8 11,454.6 11,012.8 1,278.1 8.3%
Term deposits 664.8 616.8 954.4 913.2 1,526.7 48.0 7.8%
Other liabilities including: 440.7 472.0 475.2 425.2 359.5 -31.3 -6.6%
Liabilities under cash collateral 105.4 87.6 78.7 74.5 76.9 17.7 20.2%
Repo transactions 0.0 0.0 0.0 0.0 12.2 0.0
Other liabilities 335.3 384.3 396.5 350.7 270.4 -49.0 -12.8%
Total 34,356.0 31,301.0 30,018.5 22,928.6 22,523.4 3,054.9 9.8%

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