14. Administrative expenses
Significant accounting policies
Personnel expenses and other employee benefits mainly include wages and salaries, social insurance and share based payments costs which are described in detail in Note 40.
Other administrative expenses mainly include the tax of certain financial institutions, maintenance costs of Bank’s fixed assets, IT and telecommunications infrastructure also marketing and advertising costs.
This cost category also includes contributions and payments to the Bank Guarantee Fund (quarterly contributions to the banks’ guarantee fund and annual contribution to the banks’ compulsory resolution fund paid once a year) and a mandatory fees to the Polish Financial Supervision Authority (to cover the cost of banking supervision and to cover the costs of supervision over the capital market) which Bank recognizes in the profit or loss at the time of the obligating event.
Financial data
Personnel expenses
| 2021 | 2020 | |
|---|---|---|
| Wages and salaries | -1,830,681 | -1,730,703 |
| Insurance and other charges related to employees | -311,820 | -295,990 |
| Share-based payments expenses | -13,555 | -13,173 |
| Total | -2,156,056 | -2,039,866 |
Other administrative expenses
| 2021 | 2020 | |
|---|---|---|
| General expenses | -868,846 | -815,311 |
| Tax on certain financial institutions | -718,923 | -660,590 |
| Contribution and payments to the Bank Guarantee Fund, including: | ||
| to the resolution fund | -170,592 | -210,386 |
| to the banks’ guarantee fund | -118,715 | -170,473 |
| Fees to cover cost of Supervision over Banks (KNF) / | -26,321 | -20,585 |
| Other taxes and fees | -39,589 | -36,258 |
| Total | -1,942,986 | -1,913,603 |
| Total administrative expenses | -4,099,042 | -3,953,469 |