40. Retained earnings

Retained earnings include: other supplementary capital, other reserve capital, general banking risk reserve, profit (loss) from the previous year and profit for the current year.

Other supplementary capital, other reserve capital and general banking risk reserve are created from profit for the current year and their aim is described in the By-laws or in other regulations of the law.

 

 
  31.12.2014 31.12.2013
Other supplementary capital 4 413 825 4 118 312
Other reserve capital 101 252 100 057
General banking risk reserve 1 041 953 989 953
Profit from the previous year 126 118 (15 760)
Profit for the current year 1 286 668 1 206 375
Total retained earnings 6 969 816 6 398 937
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According to the Polish legislation, each bank is required to allocate 8% of its net profit to a statutory undistributable other supplementary capital until this supplementary capital reaches 1/3 of the share capital.

In addition, the Group transfers some of its net profit to the general banking risk reserve to cover unexpected risks and future losses. The general banking risk reserve can be distributed only on consent of shareholders at a general meeting.