23. Investment securities

 

 
 

Investment
securities without
pledge

Pledged
investment
securities

Total investment
securities

Investment
securities without
pledge

Pledged
investment
securities

Total investment
securities

Debt securities 22 270 938 5 146 060 27 416 998 19 303 219 5 766 038 25 069 257
Issued by government 17 440 062 5 146 060 22 586 122 12 839 094 5 744 542 18 583 636
- government bonds 17 440 062 5 146 060 22 586 122 12 839 094 5 744 542 18 583 636
Issued by central bank 4 479 540 - 4 479 540 6 292 700 21 496 6 314 196
Other debt securities 351 336 - 351 336 171 425 - 171 425
- bank's bonds 24 907 - 24 907 25 136 - 25 136
- corporate bonds 284 854 - 284 854 107 906 - 107 906
- communal bonds 41 575 - 41 575 38 383 - 38 383
Equity securities: 261 616 - 261 616 272 506 - 272 506
Listed 229 961 - 229 961 229 617 - 229 617
Unlisted 31 655 - 31 655 42 889 - 42 889
             
Total debt and equity securities: 22 532 554 5 146 060 27 678 614 19 575 725 5 766 038 25 341 763
             
Short-term (up to 1 year) 9 034 438 - 9 034 438 6 706 581 23 494 6 730 075
Long-term (over 1 year) 13 498 116 5 146 060 18 644 176 12 869 144 5 742 544 18 611 688
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Value of equity securities recognised at cost less impairment presented above includes provisions for impairment of PLN 12 007 thousand (31 December 2013: PLN 11 422 thousand).

As at 31 December 2014, listed equity securities include fair value of PZU shares in amount of PLN 229 961 thousand (31 December 2013 - PLN 212 430 thousand).

As at 31 December 2013, the carrying values of debt securities with fixed interest rates amounted to PLN 21 184 127 thousand and debt securities with variable interest rates PLN 6 232 871 thousand (31 December 2013: PLN 17 983 776 thousand and PLN 7 085 478 thousand).

The above note includes government bonds pledged under the Bank Guarantee Fund (BFG), investment government bonds pledged as sell-buy-back transactions and government bonds pledged as collateral
for the loans received from the European Investment Bank and government bonds pledged as collateral for deposit placed by the client.

In accordance with the BFG Law of 14 December 1994, as at 31 December 2014 the Group held included in the statement of financial position government bonds and bills in the amount of PLN 410 712 thousand, at face value PLN 377 000 thousand (31 December 2013: fair value PLN 369 633 thousand; face value PLN 356 500 thousand), which were used as security under the Bank Guarantee Fund and they were deposited in a separate account respectively: money bonds at the National Bank of Poland and bonds at the National Depository of Securities.

 

Gains and losses from investment securities include:

 

 
  Year ended 31 December
  2014 2013
Sale/redemption of financial assets available for sale, investments in subsidiaries and associates 55 373 79 030
Impairment of investment securities (3 447) (452)
Total gains and losses from investment securities 51 926 78 578
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In 2014, the item “Sale/redemption of financial assets available for sale, investments in subsidiaries and associates” includes profit on sale of government bonds in the amount of PLN 45 090 (in 2013: PLN 50 796 thousand).

Impairment of investment securities incudes the write-off of the carrying value of Transfinance a.s. assets to the fair value less costs to sale due to classification the subsidiary as non-current assets (disposal group) held for sale in the amount of PLN 2 737 thousand.

Moreover, this item includes profit on sale of equity securities in the amount of PLN 10 283 thousand.

Movements in investment securities

 

 
  31.12.2014 31.12.2013
Investment securities
As at the beginning of the period 25 341 763 19 993 388
Exchange differences 18 860 (35 272)
Additions 331 433 043 434 054 540
Disposals (sale, redemption and forfeiture) (329 435 421) (428 478 060)
Gains / (losses) from impairment of equity securities and debt securities available for sale (710) (452)
Gains / (losses) from changes in fair value 321 079 (192 381)
As at the end of the period 27 678 614 25 341 763
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Movements in provisions for losses on investment securities

 
  31.12.2014 31.12.2013
Provisions for losses on equity securities    
- Listed    
As at the beginning of the period (125) (125)
Amounts written off during the period as uncollectible 125 -
As at the end of the period - (125)
Unlisted    
As at the beginning of the period (11 297) (10 845)
Allowance for impairment (710) (452)
As at the end of the period (12 007) (11 297)
Total provisions for investment securities    
As at the beginning of the period (11 422) (10 970)
Allowance for impairment (710) (452)
Amounts written off during the period as uncollectible 125 -
As at the end of the period (12 007) (11 422)
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