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 commision income and expense directly attributable to financial asset or financial liability origination are accounted for using the effective interest rate and recognized in the profit and loss account under the item of interest income or expense and have been described above.
In a situation where income and expense relate to fees and commissions related to loans and advances without a defined repayment schedule and undetermined changes in interest rates, e.g. overdrafts facilities and credit card loans, they are amortized using the straight-line method over the life of the product to which they relate.
In the case of other fees and commissions related to financial services offered by the Group, a five-stage revenue recognition model is applied, i.e.:
- Identyfying the contract,
- Indication of the elements (individual obligations) contained in the contract,
- Determinig the price,
- Allocating the price to individual element of the contract,
- Recognition of revenue after meeting the conditions related to individual elements of the contract.
The Group applies the above model each time and recognizes income from commissions and fees either once (when a service has been performed and control over the service has been transferred to the other party to the contract), or it is recognized in the income statement over a specified period in accordance with how a given service is provided.
The above settlement model is used primarily for services such as: execution of banking operations on accounts, payment card operations, brokerage, factoring and acquisition activities as well as margins on foreign currency exchange transactions with the Bank’s clients.
Financial data
Fee and commission income
| 2022 | 2021 | |
|---|---|---|
| Accounts maintenance, payment orders and cash transactions | 711 769 | 732 513 |
| Payment cards | 748 736 | 603 373 |
| Loans and advances | 459 441 | 429 915 |
| Margin on foreign exchange transactions with clients | 742 744 | 596 411 |
| Service and sell investment and insurance products | 377 442 | 464 339 |
| Securities operations | 128 895 | 152 281 |
| Custody activity | 69 228 | 70 079 |
| Guarantees, letters of credit and similar transactions | 89 382 | 79 177 |
| Other | 111 365 | 101 909 |
| Total | 3 439 002 | 3 229 997 |
Fee and commission expense
| 2022 | 2021 | |
|---|---|---|
| Payment cards | -434 577 | -354 957 |
| Money orders and transfers | -27 051 | -22 377 |
| Securities and derivatives operations | -57 548 | -50 627 |
| Acquisition services | -47 883 | -54 543 |
| Custody activity | -22 382 | -24 740 |
| Accounts maintenance | -5 913 | -5 013 |
| Investment funds management | -2 723 | -1 369 |
| Other | -33 750 | -28 856 |
| Total | -631 827 | -542 482 |
The tables below show fee and commission income by main business lines
| 2022 | RETAIL BANKING | PRIVATE BANKING | CORPORATE AND INVESTMENT BANKING | ENTERPRISE BANKING | ASSET AND LIABILITY MANAGEMENT AND OTHER | TOTAL |
|---|---|---|---|---|---|---|
| Accounts maintenance, payment orders and cash transactions | 346 117 | 917 | 157 515 | 203 893 | 3 327 | 711 769 |
| Payment cards | 478 957 | 3 441 | 215 328 | 48 080 | 2 930 | 748 736 |
| Margin on foreign exchange transactions with clients | 230 604 | 15 919 | 179 733 | 313 621 | 2 867 | 742 744 |
| Service and sell investment and insurance products | 308 595 | 46 352 | 20 982 | 611 | 902 | 377 442 |
| Securities operation, including custody activity | 7 001 | 87 993 | 102 368 | 727 | 34 | 198 123 |
| Other | 47 443 | 479 | 24 245 | 31 302 | 7 896 | 111 365 |
| Total fee and commission income from contracts with customers in the scope of IFRS 15 | 1 418 717 | 155 101 | 700 171 | 598 234 | 17 956 | 2 890 179 |
| Loans and advances | 94 133 | 74 | 216 662 | 145 753 | 2 819 | 459 441 |
| Guarantees, letters of credit and similar transactions | 374 | 1 | 57 370 | 31 447 | 190 | 89 382 |
| Total fee and commission income as presented in the Operating Segment Note 6 | 1 513 224 | 155 176 | 974 203 | 775 434 | 20 965 | 3 439 002 |
| Total fee and commission expenses (*) | -432 169 | -15 237 | -261 148 | -48 402 | 125 129 | -631 827 |
| Net fee and commission income | 1 081 055 | 139 939 | 713 055 | 727 032 | 146 094 | 2 807 175 |
| 2021 | RETAIL BANKING | PRIVATE BANKING | CORPORATE AND INVESTMENT BANKING | ENTERPRISE BANKING | ASSET AND LIABILITY MANAGEMENT AND OTHER | TOTAL |
|---|---|---|---|---|---|---|
| Accounts maintenance, payment orders and cash transactions | 384 380 | 1 403 | 131 774 | 207 874 | 7 082 | 732 513 |
| Payment cards | 381 043 | 3 000 | 179 143 | 39 999 | 188 | 603 373 |
| Margin on foreign exchange transactions with clients | 184 471 | 11 285 | 140 131 | 254 827 | 5 697 | 596 411 |
| Service and sell investment and insurance products | 299 829 | 129 004 | 33 856 | 791 | 859 | 464 339 |
| Securities operation, including custody activity | 8 705 | 85 983 | 122 932 | 4 733 | 7 | 222 360 |
| Other | 19 361 | 509 | 72 757 | 6 083 | 3 199 | 101 909 |
| Total fee and commission income from contracts with customers in the scope of IFRS 15 | 1 277 789 | 231 184 | 680 593 | 514 307 | 17 032 | 2 720 905 |
| Loans and advances | 121 008 | 193 | 165 327 | 138 193 | 5 194 | 429 915 |
| Guarantees, letters of credit and similar transactions | 138 | 4 | 53 074 | 25 621 | 340 | 79 177 |
| Total fee and commission income as presented in the Operating Segment Note 6 | 1 398 935 | 231 381 | 898 994 | 678 121 | 22 566 | 3 229 997 |
| Total fee and commission expenses (*) | -345 897 | -48 212 | -228 940 | -25 606 | 106 173 | -542 482 |
| Net fee and commission income | 1 053 038 | 183 169 | 670 054 | 652 515 | 128 739 | 2 687 515 |