24. Assets and liabilities held for sale

On 8 December 2014, an agreement for the sale of 100% shares of Transfinance a.s. between mBank S.A. and UniCredit Bank Czech Republic and Slovakia a.s. (UniCredit) was concluded. The transaction was finalized on 20 January 2015, after the fullfilment of all contractual suspending conditions. The sale of Transfinance is the result of implementing the One Bank Strategy for 2012-2016 and is the last stage of restructuring of foreign factoring activities of the Group i.e. after the sale of Magyar Factor zRt and Intermarket Bank AG in 2011.

In accordance with the above mentioned, the Group classified Transfinance a.s. as non-current assets (disposal groups) held for sale as at 31 December 2014.

On 11 September 2014, the Bank's subsidiary Aspiro S.A. ("Aspiro") being the shareholder of the company BRE Ubezpieczenia Towarzystwo Ubezpieczeń i Reasekuracji S.A. ("BRE TUiR"), concluded an agreement with Avanssur SA the company belonging to AXA Group for the sale of 100% shares in BRE TUiR ("Agreement on the Sale of Shares").

In accordance with the Agreement on the Sale of Shares, the sale of 100% of shares of BRE TUiR to Avanssur SA is conditioned by meeting specific conditions precedent, in particular: (i) obtain the consent of the Office of Competition and Consumer Protection and (ii) no objections raised by the Polish Financial Supervision Authority.

Therefore, starting from the financial statements as at 30 September 2014, the Group classified BRE TUiR and indirectly its subsidiary AWL I Sp. z o.o. as non-current assets (disposal groups) held for sale.

Below are presented financial data concerning non-current assets (disposal group) held for sale as at 31 December 2014.

 

 

Non-current assets held for sale

31.12.2014

Cash and balances with the Central Bank

18

Loans and advances to banks

86 838

Trading securities

122 677

Loans and advances to customers

289 969

Intangible assets

3 204

Tangible assets

831

Current income tax assets

804

Deferred income tax assets

1 092

Other assets

71 405

Total non-current assets held for sale

576 838

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Liabilities held for sale

31.12.2014

Amounts due to other banks

85 994

Amounts due to customers

4 908

Other liabilities

45 836

Current income tax liabilities

4 048

Provisions

135 555

Total liabilities held for sale

276 341

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The item "Provisions" entirely relates to technical insurance provisions in the BRE TUiR (see note below).

 

Technical insurance provisions

  31.12.2014 31.12.2013
Insurance provisions and reinsurance assets    
Insurance provisions gross, including:  236 199  179 892
- Provision for losses raised and costs of liquidation   30 702    22 221
- IBNR  105 627    93 644
- Provision for premiums
  99 870    64 027
Insurance provisions gross, total   236 199    179 892
Reinsurer's share, including:    
- Provision for losses raised and costs of liquidation 22 563 16 328
- IBNR 47 155 42 883
- Provision for premiums 30 926 33 513
Reinsurer's share, total 100 644 92 724
Insurance provisions net, including    
- Provision for losses raised and costs of liquidation 8 139 5 893
- IBNR 58 472 50 761
- Provision for premiums 68 944 30 514
Insurance provisions net, total 135 555
87 168
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Financial data concerning cash-flow positions connected with non-current assets held for sale for the year ended on 31 December 2014.

 

 

31.12.2014

Cash flow from operating activities

(72 335)

Cash flow from investing activities

(2 384)

Cash flow from financing activities

-

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Activities of the company Transfinance a.s., until its sale by the Group, was included in the segment "Corporations and Financial Markets" in the sub-segment "Corporate and Investment Banking." The gross profit achieved by the company for 2014 and for 2013 year was respectively: PLN (18 887) thousand and PLN 3 249 thousand.

The activity of BRE Ubezpieczenia TUiR .SA. was included in the segment "Retail Banking (including private banking)." The gross profit achieved by the company for 2014 and for 2013 year was respectively: PLN 83 390 thousand and PLN 94 100 thousand.