10. Result on financial assets and liabilities measured at fair value through profit or loss and foreign exchange result

Result on financial assets measured at fair value through profit or loss includes:

• Foreign exchnage result – the foregin exchange gains (losses) are calculated taking into account  the positive and negative foreign currency translation differences, wheter realized or unrealized from the daily valuation of assets and liabilities denominated in foreign currencies. The revaluation is perform using the average exchange  announced by the NBP on the balance sheet date. Moreover, the foreign exchange result includes swap points from derivative transactions, entered into by the Group for the purpose of managing the Group’s liquidity in foreign currencies.
• Result on derivatives, loans and advances to customers and securitites measured at fair value though profit or loss. The income referred to above includes gains and losses realized on a sale or a change in the fair value of financial assets and liabilities measured at fair value through profit or loss. The accured interest and unwinding of a discount or a premium on loans and advances to customers and debt securities measured at fair value through profit or loss is presented in the net interest income.

This includes gains and losses arising from changes realized on a sale or a change in the fair value of assets and liabilities, designated at fair value through profit or loss.

The accrued interest and unwinding of a discount or a premium on financial assets/liabilities designated at fair value through profit or loss are recognized in the interest result.

Result on financial assets and liabilities measured at fair value through profit or loss and foreign exchange result