22. Loans and advances to customers

 

 
  31.12.2014 31.12.2013
Loans and advances to individuals: 41 560 477 38 307 915
- current accounts 5 442 653 4 978 854
- term loans, including: 36 117 824 33 329 061
housing and mortgage loans 30 510 513 28 692 896
Loans and advances to corporate entities: 32 841 046 29 475 274
- current accounts 3 701 490 3 597 377
- term loans: 23 977 679 21 076 873
    - corporate & institutional enterprises 5 751 583 5 115 320
    - medium & small enterprises 18 226 096 15 961 553
- reverse repo / buy-sell-back transactions 3 838 553 3 287 066
- other 1 323 324 1 513 958
Loans and advances to public sector 1 924 395 2 177 976
Other receivables 1 047 273 620 627
Total (gross) loans and advances to customers 77 373 191 70 581 792
Provisions for loans and advances to customers (negative amount) (2 790 841) (2 371 407)
Total (net) loans and advances to customers 74 582 350 68 210 385
Short-term (up to 1 year) 26 964 700 24 596 330
Long-term (over 1 year) 47 617 650 43 614 055
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As at 31 December 2014, variable rate credits amounted to PLN 73 877 559 thousand and fixed rate credits amounted to PLN 3 495 632 thousand (as at 31 December 2013 respectively: PLN 69 584 163 thousand and PLN 997 629 thousand). The values mentioned above relate to loans granted to individual clients, corporate clients and the budget sector. An average interest rate for loans granted to customers (excluding reverse repos) amounted to 3.98% (31 December 2013: 4.01%).

The item “Other” includes cash collaterals (as at 31 December 2014 in the amount of PLN 18 226 thousand, as at 31 December 2013: PLN 62 498 thousand) placed by the Group under derivatives transactions (Note 37).

In 2013, the Group sold in several transactions, retail and corporate impaired loan portfolios (default portfolios). The nominal value of sales transactions amounted to PLN 852 092 thousand (including corporate portfolio of PLN 642 930 thousand). Sold receivables, in the majority of cases, were highly covered by impairment provisions, and above mentioned transactions have had a significant impact on reducing the defaulted portfolio at the end of 2013 and coverage ratio.

Provisions for loans and advances

 

 
  31.12.2014 31.12.2013
Incurred but not identified losses
Gross balance sheet exposure 72 458 578 66 158 075
Impairment provisions for exposures analysed according to portfolio approach (242 401) (256 556)
Net balance sheet exposure 72 216 177 65 901 519
Receivables with impairment    
Gross balance sheet exposure 4 914 613 4 423 717
Provisions for receivables with impairment (2 548 440) (2 114 851)
Net balance sheet exposure 2 366 173 2 308 866
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Movements in provisions for loans and advances

 

 

MOVEMENTS IN PROVISIONS FOR LOANS AND ADVANCES TO
CUSTOMERS AS OF 2014

Provisions as at 01.01.2014

Provisions
created

Release of
provisions

Reclassification
and foreign
exchange differences

Write-offs

Provisions as at 31.12.2014

Loans and advances to individuals (1 154 497) (1 004 962) 703 279 (24 442) 209 (1 480 413)
Current accounts (444 214) (405 670) 264 742 (8 812) 100 (593 854)
Term loans, including: (710 283) (599 292) 438 537 (15 630) 109 (886 559)
Housing and mortgage loans (469 157) (311 490) 249 763 (10 552) 84 (541 352)
Loans and advances to corporate entities (1 205 113) (742 274) 512 086 (32 647) 158 889 (1 309 059)
Current accounts (234 414) (197 360) 186 836 (22 710) 26 537 (241 111)
Term loans, including: (915 235) (512 930) 324 214 11 273 30 948 (1 061 730)
Corporate & institutional enterprises (180 681) (74 498) 63 586 (2 355) - (193 948)
Medium & small enterprises (734 554) (438 432) 260 628 13 628 30 948 (867 782)
Other (55 464) (31 984) 1 036 (21 999) 101 404 (7 007)
Reclassification to non-current assets hels for sale - - - 789 - 789
Loans and advances to public sector (11 797) (2 100) 12 527 1 - (1 369)

Total movements in provisions for loans and advances to
customers

(2 371 407) (1 749 336) 1 227 892 (57 088) 159 098 (2 790 841)
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MOVEMENTS IN PROVISIONS FOR LOANS AND ADVANCES TO
CUSTOMERS AS OF 2013

Provisions as at 01.01.2013

Provisions
created

Release of
provisions

Reclassification and foreign exchange differences

Write-offs

Provisions as at 31.12.2013

Loans and advances to individuals (1 057 723) (1 251 779) 990 527 (18 078) 182 556 (1 154 497)
Current accounts (586 189) (459 141) 518 946 (17 120) 99 290 (444 214)
Term loans, including: (471 534) (792 638) 471 581 (958) 83 266 (710 283)
Housing and mortgage loans (283 938) (488 484) 268 959 760 33 546 (469 157)
Loans and advances to corporate entities (1 458 484) (767 033) 559 269 6 835 454 300 (1 205 113)
Current accounts (286 561) (252 500) 174 579 38 567 91 501 (234 414)
Term loans, including: (1 112 926) (503 632) 384 007 (27 363) 344 679 (915 235)
Corporate & institutional enterprises (311 280) (139 081) 193 890 1 271 74 519 (180 681)
Medium & small enterprises (801 646) (364 551) 190 117 (28 634) 270 160 (734 554)
Other (58 997) (10 901) 683 (4 369) 18 120 (55 464)
Loans and advances to public sector (12 326) (724) 1 255 (2) - (11 797)

Total movements in provisions for loans and advances to
customers

(2 528 533) (2 019 536) 1 551 051 (11 245) 636 856 (2 371 407)
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Loans and advances include receivables under finance leases.

 
  31.12.2014 31.12.2013
Gross investment in finance leases, receivable: 5 122 993 4 541 342
- not later than 1 year 1 634 260 1 393 783
- later than 1 year and not later than 5 years 2 893 079 2 492 111
- later than 5 years 595 654 655 448
Unearned future finance income on finance leases (negative amount) (537 336) (533 982)
Net investment in finance leases 4 585 657 4 007 360
Net investment in finance leases, receivable:    
- not later than 1 year 1 446 365 1 208 758
- later than 1 year and not later than 5 years 2 645 409 2 230 081
- later than 5 years 493 883 568 521
Net investment in finance leases 4 585 657 4 007 360
Impairment provisions for finance leases receivable (159 100) (149 130)
Net carrying amount of finance leases receivable 4 426 557 3 858 230
Unguaranteed residual value accruing to the lessor 323 458 202 245
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Loans and advances to customers 31.12.2014 31.12.2013

exposure
in PLN '000

share/coverage (%)

exposure
in PLN '000

share/coverage (%)

Neither past due nor impaired 69 925 565 90.37 63 847 985 90.46
Past due but not impaired 2 533 013 3.27 2 310 090 3.27
Impaired 4 914 613 6.35 4 423 717 6.27
Total, gross 77 373 191 100.00 70 581 792 100.00
Provision (provision for impaired loans and advances as well as IBNI provision) (2 790 841) 3.61 (2 371 407) 3.36
Total, net 74 582 350 96.39 68 210 385 96.64
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The amount of recognized provision for loans and advances is PLN 2 790 841 thousand (as at 31 December 2013: PLN 2 371 407 thousand) of which PLN 2 548 440 thousand (as at 31 December 2013: PLN 2 114 851 thousand) represents the individually impaired loans and advances to customers and the remaining amount of PLN 242 401 thousand represents the portfolio provision IBNI (as at 31 December 2013 PLN 256 556 thousand). Further information on the impairment allowance for loans and advances to banks and to customers is provided in Note 22.

90.37% of the loans and advances portfolio is considered to be neither past due nor impaired (31 December 2013: 90.46%).

 

 
31 December 2014 Individuals Corporate entities Public sector

Other
receivables

Total - Loans
and advances
to customers

Sub-portfolio

Current
accounts

Term loans including:

Current
accounts

Term loans

Reverse repo /
buy-sell-back
transactions

Other

housing and
mortgage loans

corporate &
institutional
enterprises

medium & small
enterprises

1 50 121 2 756 681 2 698 567 76 519 444 595 460 889 - 2 177 917 246 3 966 970
2 902 114 19 205 880 18 575 234 489 396 1 077 725 996 792 - 18 226 1 197 564 1 302 23 888 999
3 1 100 939 5 646 539 4 220 487 545 440 1 165 995 3 116 904 - 3 339 965 279 11 916 064
4 1 295 018 3 393 621 1 580 106 1 619 116 2 643 625 8 909 256 - - 175 188 100 18 035 924
5 592 123 1 262 949 611 563 484 530 33 037 1 895 509 - - 5 960 7 4 274 115
6 39 417 145 005 85 502 24 807 687 158 190 - - - - 368 106
7 105 480 356 644 262 273 40 367 99 902 400 277 - - - 1 1 002 671
8 57 433 152 165 118 386 4 - - 3 838 553 - 3 192 1 044 814 5 096 161
other *) - - - 1 - - - 1 299 532 - - 1 299 533
Default category 54 8 516 3 223 12 592 8 009 47 398 - - - 453 77 022
Total 4 142 699 32 928 000 28 155 341 3 292 772 5 473 575 15 985 215 3 838 553 1 317 763 1 899 786 1 047 202 69 925 565

*) position “other” concerns these entities, which do not use the same rating systems as mBank S.A.

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31 December 2013 Individuals Corporate entities Public sector

Other
receivables

Total - Loans
and advances
to customers

Sub-portfolio

Current
accounts

Term loans including:

Current
accounts

Term loans

Reverse repo /
buy-sell-back
transactions

Other

housing and
mortgage loans

corporate &
institutional
enterprises

medium & small
enterprises

1 38 137 1 815 230 1 771 948 54 135 86 384 567 148 - - 535 278 8 3 096 320
2 697 256 15 893 469 15 335 382 407 710 2 969 942 1 184 488 - 62 504 1 181 787 - 22 397 156
3 736 917 6 843 621 5 779 251 857 803 1 116 207 2 690 665 - 1 033 080 285 853 - 13 564 146
4 1 247 564 3 828 028 2 430 586 1 560 288 456 508 7 292 149 - - 134 253 - 14 518 790
5 738 397 1 306 710 714 315 274 359 100 001 1 711 440 - - 1 232 - 4 132 139
6 40 410 142 453 98 376 9 840 67 504 136 557 - - - - 396 764
7 200 440 585 078 429 435 23 698 28 014 270 214 - - - - 1 107 444
8 150 459 101 802 30 656 1 - - 3 287 066 - - 620 619 4 159 947
other *) - - - 443 - - - 346 526 - - 346 969
Default category - 6 300 2 179 12 908 7 919 101 183 - - - - 128 310
Total 3 849 580 30 522 691 26 592 128 3 201 185 4 832 479 13 953 844 3 287 066 1 442 110 2 138 403 620 627 63 847 985

*) position “other” concerns these entities, which do not use the same rating systems as mBank S.A.

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Loans and advances past due but not impaired

Gross amounts of loans and advances, which were past due but not impaired are presented below by classes of assets. No impairment is recognised in respect of loans and advances past due for less than 90 days, unless other available information indicates their impairment.

 

 
31 December 2014 Individuals Corporate entities Public sector

Other
receivables

Total - Loans
and advances
to customers

 

Current
accounts

Term loans including:

Current
accounts

Term loans

Reverse repo /
buy-sell-back
transactions

Other

housing and
mortgage loans

corporate &
institutional
enterprises

medium & small
enterprises

Past due up to 30 days

322 554 1 055 791 833 692 14 822 18 504 611 548 - - 24 609 - 2 047 828

Past due 31 - 60 days

23 808 145 974 104 053 3 324 392 61 823 - - - 71 235 392

Past due 61 - 90 days

9 685 34 553 20 861 621 - 11 201 - - - - 56 060

Past due over 90 days

9 441 19 548 5 556 10 296 - 154 448 - - - - 193 733
Total 365 488 1 255 866 964 162 29 063 18 896 839 020 - - 24 609 71 2 533 013
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31 December 2013 Individuals Corporate entities Public sector

Other
receivables

Total - Loans
and advances
to customers

 

Current
accounts

Term loans including:

Current
accounts

Term loans

Reverse repo /
buy-sell-back
transactions

Other

housing and
mortgage loans

corporate &
institutional
enterprises

medium & small
enterprises

Past due up to 30 days 316 856 924 349 722 009 10 058 7 644 438 088 - - 26 667 - 1 723 662
Past due 31 - 60 days 31 433 155 514 116 847 4 542 4 609 151 076 - - - - 347 174
Past due 61 - 90 days 11 304 41 670 31 349 1 323 - 11 070 - - - - 65 367
Past due over 90 days 23 657 72 040 20 928 11 590 332 53 362 - - 12 906 - 173 887
Total 383 250 1 193 573 891 133 27 513 12 585 653 596 - - 39 573 - 2 310 090
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Loans and advances individually impaired

Loans and advances individually impaired amounted to PLN 2 366 173 thousand (as at 31 December 2013: PLN 2 308 866 thousand). Gross amounts of loans and advances individually impaired (i.e., before taking into consideration the cash flows from collateral held and expected repayments) are presented below by classes of assets.

 

 
  Individuals Corporate entities Public sector

Other
receivables

Total - Loans
and advances
to customers

 

Current
accounts

Term loans including:

Current
accounts

Term loans

Reverse repo /
buy-sell-back
transactions

Other

housing and
mortgage loans

corporate &
institutional
enterprises

medium & small
enterprises

31 December 2014
Loans and advances
with impairment
934 466 1 933 958 1 391 010 379 655 259 112 1 401 861 - 5 561 - - 4 914 613
Provisions for loans
and advances with
impairment
(539 544) (788 893) (496 287) (335 978) (181 480) (697 127) - (5 418) - - (2 548 440)
31 December 2013        
Loans and advances
with impairment
746 024 1 612 797 1 209 635 368 679 270 256 1 354 113 - 71 848 - - 4 423 717
Provisions for loans
and advances with
impairment
(388 617) (608 010) (411 346) (215 575) (170 440) (677 545) - (54 664) - - (2 114 851)
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The Group is characterized by a conservative approach in the area of verification of collateral value and setting of acceptable LtV levels. The policy, in this respect, imposes particularly significant restrictions in case of transactions with probability of default higher than average (non-purpose loans and consolidation loans) and/or secured on low-liquid real estate (localized on not well developed markets).

 

Financial effect of collaterals

 

 
As at 31 December 2014 Gross amount

Provisions
created

Provisions
without cash flow
from collaterals

Financial effect of
collaterals

Balace sheet data
Loans and advances to banks 3 752 899 (1 484) (1 484) -
Loans and advances to customers, including: 77 373 191 (2 790 841) (4 148 918) 1 385 297
Loans to individuals: 41 560 477 (1 480 479) (1 797 724) 317 245
− Current accounts 5 442 653 (593 854) (614 931) 21 077
− Term loans, including: 36 117 824 (886 625) (1 182 793) 296 168
      housing and mortgage loans 30 510 513 (541 418) (764 534) 223 116
Loans to corporate clients: 27 679 169 (1 281 773) (2 349 790) 1 068 017
− Current accounts 3 701 490 (349 331) (397 825) 48 494
− Term loans: 23 977 679 (932 442) (1 951 965) 1 019 523
      corporate & institutional enterprises 5 751 583 (193 948) (280 510) 86 562
      medium & small enterprises 18 226 096 (738 494) (1 671 455) 932 961
Loans and advances to public sector 1 924 395 (1 369) (1 404) 35
Total balance sheet data 81 126 090 (2 792 325) (4 150 402) 1 385 297
Off-balance sheet data:
Loan commitments and other commitments 19 883 402 (41 376) (45 684) 4 308
Guarantees, banker's acceptances, documentary and commercial letters of
credit
3 610 377 (8 237) (11 773) 3 536
Total off-balance sheet data: 23 493 779 (49 613) (57 457) 7 844
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As at 31 December 2013 Gross amount Provisions
created
Provisions
without cash flow
from collaterals
Financial effect of
collaterals
Balace sheet data
Loans and advances to banks 3 471 530 (289) (289) -
Loans and advances to customers, including: 70 581 792 (2 371 407) (3 737 661) 1 703 106
Loans to individuals: 38 307 915 (1 154 563) (1 486 116) 331 553
− Current accounts 4 978 854 (444 214) (468 880) 24 666
− Term loans, including: 33 329 061 (710 349) (1 017 236) 306 887
      housing and mortgage loans 28 692 896 (469 223) (671 645) 202 422
Loans to corporate clients: 25 152 990 (1 390 778) (2 616 968) 1 226 190
− Current accounts 3 597 377 (234 414) (321 643) 87 229
− Term loans: 21 076 873 (633 781) (1 912 212) 1 278 431
      corporate & institutional enterprises 5 115 320 (180 681) (299 011) 118 330
      medium & small enterprises 15 961 553 (453 100) (1 613 201) 1 160 101
Loans and advances to public sector 2 177 976 (11 797) (17 690) 5 893
Total balance sheet data 74 053 322 (2 529 092) (4 104 919) 1 703 106
Off-balance sheet data:
Loan commitments and other commitments 18 417 254 (34 720) (58 792) 24 072
Guarantees, banker's acceptances, documentary and commercial letters of credit 3 188 247 (21 348) (36 775) 15 427
Total off-balance sheet data: 21 605 501 (56 068) (95 567) 39 499
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