8. Fee and commission income and expense
Significant accounting policies
Fee and commission income is generated from financial services provided by the Group. Fee and commission income and expense is recognized in the profit or loss using the following methods:
- fees and commissions directly attributable to financial asset or liabilityorigination (both income and expense) are recognized in the income statement using the effective interest rate method and are described above,
- fees and commissions relating to the loans and advances without a defined repayment schedule and without a defined interest rate schedule e.g. overdraft facilities and credit card are amortized over the life of the product using the straight line method,
- other fees and commissions arising from the Group’s financial services offering (customer account transaction charges, credit card servicing transactions, bounses from card providers in order to cover the marketing card cost, brokerage activity and canvassing) as well as the trade margins on foreign exchange transactions with the Bank’s clients are recognized in the income statement up-front when the corresponding service is provided.
Financial data
Fee and commission income
| 2021 | 2020 | |
|---|---|---|
| Accounts maintenance, payment orders and cash transaction | 732,513 | 605,530 |
| Payment cards | 606,546 | 584,116 |
| Loans and advances | 460,120 | 399,888 |
| Margin or foreign exchange transactions with clients | 596,411 | 527,917 |
| Service and sell investment and insurance products | 464,339 | 471,662 |
| Securities operations | 122,076 | 106,849 |
| Custody activity | 70,079 | 57,318 |
| Guarantees, letters of credit and similar transactions | 79,177 | 65,968 |
| Other | 98,736 | 86,018 |
| Total | 3,229,997 | 2,905,266 |
Fee and commission expense
| 2021 | 2020 | |
|---|---|---|
| Payment cards | -362,859 | -323,852 |
| Money orders and transfers | -22,377 | -21,580 |
| Securities and derivatives operations | -50,627 | -45,369 |
| Acquisition services | -54,543 | -43,240 |
| Custody activity | -24,740 | -19,970 |
| Accounts maintenance | -5,013 | -4,643 |
| Investment funds management | -1,369 | -963 |
| Other | -20,954 | -11,999 |
| Total | -542,482 | -471,616 |