42. Equity
Significant accounting policies
Equity is comprised of the capital and funds created by the companies of the Group in accordance with the binding legal regulations and the appropriate laws and Articles of Association. Equity also includes retained earnings. Subsidiaries’ equity line items, other that share capital, are added to the relevant equity line items of the parent company, in the proportion of the Group’s interest.
The equity of the Group includes only those parts of the subsidiaries’ equity which were created after the date of purchase of shares or stocks by the parent entity.
The Group equity consists of the following:
- share capital – applies only to the capital of the Bank as the parent entity and is presented at nominal value specified in the Articles of Association and in the entry in the Enterprises Registry,
- ‘issue premium’ – surplus generated during share issues over the nominal value of such issues, remaining after the issue costs are covered. Moreover, this item also includes a change in the value of minority shares, ensuing from an increase of the share of the Parent entity in Bank’s share capital,
- the general banking risk fund is established at Bank Pekao S.A. in keeping with the Banking Act dated 29 August 1997 from profit after tax,
- other reserve capital utilized for the purposes defined in the Statute is created from appropriations of profits,
- revaluation reserve includes the impact of revaluation of debt financial instruments measured at fair value through other comprehensive income, revaluation or sale of investments in equity instruments designated at fair value through other comprehensive income, revaluation of derivative instruments hedging cash flows, remeasurements of the defined benefit liabilities and the value of deferred tax for items classified as temporary differences, recognized as valuation allowance. In the statement of financial position, the valuation allowance is presented as net value,
-
other capital:
- other supplementary capital, established in keeping with provisions under the Articles of Association of companies from profit appropriations,
- bonds convertible to shares – includes the fair value of financial instruments issued as part of transactions settled in equity instruments,
- brokerage activity fund for stock broking operations, carried out by Bank Pekao S.A.,
- retained earnings from prior periods includes undistributed profit and uncovered losses generated/incurred in prior periods by subsidiaries consolidated full method,
- net profit/loss which constitutes profit/loss presented in the income statement for the relevant period. Net profit is after accounting for income tax.
Financial data
Share capital
Shareholding structure
| CLASS/ISSUE | TYPE OF SHARES | NUMBER OF SHARES | NOMINAL VALUE OF CLASS/ISSUE | EQUITY COVERAGE | REGISTRATION DATE | DIVIDEND RIGHTS (FROM DATE) |
|---|---|---|---|---|---|---|
| A | Common bearer stock | 137 650 000 | 137 650 | fully paid-up | 21.12.1997 | 01.01.1998 |
| B | Common bearer stock | 7 690 000 | 7 690 | fully paid-up | 06.10.1998 | 01.01.1998 |
| C | Common bearer stock | 10 630 632 | 10 631 | fully paid-up | 12.12.2000 | 01.01.2000 |
| D | Common bearer stock | 9 777 571 | 9 777 | fully paid-up | 12.12.2000 | 01.01.2000 |
| E | Common bearer stock | 373 644 | 374 | fully paid-up | 29.08.2003 | 01.01.2003 |
| F | Common bearer stock | 621 411 | 621 | fully paid-up | 29.08.2003 | 19.05.2006 |
| G | Common bearer stock | 603 377 | 603 | fully paid-up | 29.08.2003 | 15.05.2008 |
| H | Common bearer stock | 359 840 | 360 | fully paid-up | 12.08.2004 | 01.01.2004 |
| I | Common bearer stock | 94 763 559 | 94 764 | fully paid-up | 29.11.2007 | 01.01.2008 |
| Total number of Shares (pcs) | 262 470 034 | |||||
| Total share capital in PLN thousand | 262 470 | |||||
| Nominal value per share = PLN 1.00 | ||||||
Change in the number of shares (pcs)
| 2022 | ISSUED AND FULLY PAID-UP SHARES | TOTAL |
|---|---|---|
| Opening balance | 262 470 034 | 262 470 034 |
| Closing balance | 262 470 034 | 262 470 034 |
| 2021 | ISSUED AND FULLY PAID-UP SHARES | TOTAL |
|---|---|---|
| Opening balance | 262 470 034 | 262 470 034 |
| Closing balance | 262 470 034 | 262 470 034 |
Other capital and reserves, retained earnings and profit for the period
The table below presents the structure of the Group’s equity attributable to equity holders of the Bank
| 31.12.2022 | 31.12.2021 | |
|---|---|---|
| Share premium | 9 137 221 | 9 137 221 |
| General banking risk fund | 1 982 459 | 1 982 459 |
| Other reserve capital | 10 800 588 | 9 684 220 |
| Revaluation reserves, in this: | -3 295 657 | -1 618 480 |
| remeasurements of the defined benefit liabilities (net of tax) | -53 080 | -44 917 |
| revaluation of debt financial instruments and loans measured at fair value through other comprehensive income (net of tax) | -1 156 796 | -518 881 |
| revaluation or sale of investments in equity instruments designated at fair value through other comprehensive income (net of tax) | 153 042 | 200 877 |
| revaluation of hedging financial instruments (net of tax) | -2 238 823 | -1 255 559 |
| Other supplementary capital, in this: | 353 611 | 369 538 |
| supplementary capital | 309 792 | 325 719 |
| bonds convertible into shares – equity component | 28 819 | 28 819 |
| fund for brokerage activities | 15 000 | 15 000 |
| Other capital and reserves | 18 978 222 | 19 554 958 |
| Retained earnings | 1 804 621 | 1 859 104 |
| Net profit for the period | 1 717 570 | 2 174 897 |
| Retained earnings and net profit for the period | 3 522 191 | 4 034 001 |
| Total | 22 500 413 | 23 588 959 |
The net profit of the Bank for 2021 in the amount of PLN 2 236 829 thousand was distributed in the following way: PLN 1 128 621 thousand was allocated to the payment of dividends, and the remaining part of the net profit in the amount of PLN 1 108 208 thousand was allocated to reserve capital.