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

Shareholding structure

CLASS/ISSUE	TYPE OF SHARES	NUMBER OF SHARES	NOMINAL VALUE OF CLASS/ISSUE (IN PLN THOUSAND(W TYS. ZŁOTYCH)	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)

2023	ISSUED AND FULLY PAID-UP SHARES	TOTAL
Opening balance	262,470,034	262,470,034
Closing balance	262,470,034	262,470,034

2022	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 Pekao S.A.

Enlarge

	31.12.2023	31.12.2022
Share premium	9,137	9,137
General banking risk fund	1,983	1,983
Other reserve capital	11,290	10,800
Revaluation reserves, in this:	-893	-3,295
remeasurements of the defined benefit liabilities (net of tax)	-77	-53
revaluation of debt financial instruments and loans measured at fair value through other comprehensive income (net of tax)	-404	-1,157
revaluation or sale of investments in equity instruments designated at fair value through other comprehensive income (net of tax)	209	153
revaluation of hedging financial instruments (net of tax)	-621	-2,238
Other supplementary capital, in this:	355	354
supplementary capital	311	310
bonds convertible into shares – equity component	29	29
fund for brokerage activities	15	15
Other capital and reserves	21,872	18,979
Retained earnings	1,617	1,805
Net profit for the period	6,578	1,717
Retained earnings and net profit for the period	8,195	3,522
Total	30,067	22,501

The net profit of the Bank for 2022 in the amount of PLN 1 898 million was distributed in the following way: PLN 1 422 million was allocated to the payment of dividends, and the remaining part of the net profit in the amount of PLN 476 million was allocated to reserve capital.