Annual Report 2023

23. Loans and advances to customers

  • 23. Loans and advances to customers

Significant accounting policies

Loans and advances to customers include amounts due from loans and advances granted, finance lease and factoring receivables.

Loans and advances to customers are classified in the individual measurement categories in accordance with the principles for selecting the business model and evaluating the characteristics of contractual cash flows referred to in the Note 5.4.

Accounting policies used for finance lease receivables are described in Note 12 and 40.

Financial data

Loans and advances to customers by product type

31.12.2023
AMORTISED COST FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME FAIR VALUE THROUGH PROFIT OR LOSS TOTAL
Mortgage loans 77,861 – 7 77,868
Current accounts 12,931 – – 12,931
Operating loans 11,443 – 8 11,451
Investment loans 26,495 82 8 26,585
Cash loans 13,505 – – 13,505
Payment cards receivables 1,189 – – 1,189
Financial leasing 11,183 – – 11,183
Factoring 9,524 – – 9,524
Other loans and advances 4,925 – 226 5,151
Reverse repo transactions 1,703 – – 1,703
Gross carrying amount 170,759 82 249 171,090
Impairment allowances (*) (**) -9,679 – – -9,679
Carrying amount 161,080 82 249 161,411
(*) The impairment allowance for loans and advances to customers measured at fair value through other comprehensive income in the amount of PLN 1 million is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan.
(**) Including the provision for legal risk regarding foreign currency mortgage loans in the amount of PLN 1 536 million.

Loans and advances to customers by product type

31.12.2022
AMORTISED COST FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME FAIR VALUE THROUGH PROFIT OR LOSS TOTAL
Mortgage loans 75,136 – 9 75,145
Current accounts 14,440 – – 14,440
Operating loans 12,576 – 12 12,588
Investment loans 26,769 254 11 27,034
Cash loans 12,767 – – 12,767
Payment cards receivables 1,091 – – 1,091
Financial leasing 9,900 – – 9,900
Factoring 7,896 – – 7,896
Other loans and advances 6,412 – 152 6,564
Reverse repo transactions 1,338 – – 1,338
Gross carrying amount 168,325 254 184 168,763
Impairment allowances (*) (**) -10,042 – – -10,042
Carrying amount 158,283 254 184 158,721
(*) The impairment allowance for loans and advances to customers measured at fair value through other comprehensive income in the amount of PLN 3 million is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan.
(**) Including the provision for legal risk regarding foreign currency mortgage loans in the amount of PLN 1 725 million.

Loans and advances to customers by customer type

31.12.2023
AMORTISED COST FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (*) FAIR VALUE THROUGH PROFIT OR LOSS TOTAL
GROSS CARRYING AMOUNT IMPAIRMENT ALLOWANCES (**)  CARRYING AMOUNT
Corporate 89,172 -5,750 83,422 82 13 83,517
Individuals 80,427 -3,920 76,507 – 227 76,734
Budget entities 1,160 -9 1,151 – 9 1,160
Loans and advances to customers 170,759 -9,679 161,080 82 249 161,411
(*) The impairment allowance for loans and advances to customers measured at fair value through other comprehensive income in the amount of PLN 1 million is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan.
(**) Including the provision for legal risk regarding foreign currency mortgage loans in the amount of PLN 1 536 million.
31.12.2022
AMORTISED COST FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (*) FAIR VALUE THROUGH PROFIT OR LOSS TOTAL
GROSS CARRYING AMOUNT IMPAIRMENT ALLOWANCES (**)  CARRYING AMOUNT
Corporate 89,347 -5,945 83,402 254 18 83,674
Individuals 77,272 -3,976 73,296 – 152 73,448
Budget entities 1,706 -121 1,585 – 14 1,599
Loans and advances to customers 168,325 -10,042 158,283 254 184 158,721
(*) The impairment allowance for loans and advances to customers measured at fair value through other comprehensive income in the amount of PLN PLN 3 million is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan.
(**) Including the provision for legal risk regarding foreign currency mortgage loans in the amount of PLN 1 725 million.

Loans and advances to customers by contractual maturity

31.12.2023
AMORTISED COST FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME FAIR VALUE THROUGH PROFIT OR LOSS TOTAL
Loans and advances to customers, including:
up to 1 month 22,209 – 2 22,211
between 1 and 3 months 8,935 – 5 8,940
between 3 months and 1 year 17,218 – 16 17,234
between 1 and 5 years 54,248 82 192 54,522
over 5 years 62,545 – 31 62,576
past due 5,604 – 3 5,607
Gross carrying amount 170,759 82 249 171,090
Impairment allowances (*) (**) -9,679 – – -9,679
Carrying amount 161,080 82 249 161,411
(*) The impairment allowance for loans and advances to customers measured at fair value through other comprehensive income in the amount of PLN 1 million is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan.
(**) Including the provision for legal risk regarding foreign currency mortgage loans in the amount of PLN 1 536 million.

Loans and advances to customers by contractual maturity

31.12.2022
AMORTISED COST FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME FAIR VALUE THROUGH PROFIT OR LOSS TOTAL
Loans and advances to customers, including:
up to 1 month 24,389 1 2 24,392
between 1 and 3 months 6,869 3 5 6,877
between 3 months and 1 year 17,358 62 19 17,439
between 1 and 5 years 51,802 188 129 52,119
over 5 years 62,005 – 25 62,030
past due 5,902 – 4 5,906
Gross carrying amount 168,325 254 184 168,763
Impairment allowances (*) (**) -10,042 – – -10,042
Carrying amount 158,283 254 184 158,721
(*) The impairment allowance for loans and advances to customers measured at fair value through other comprehensive income in the amount of PLN PLN 3 million is included in the ‘Revaluation reserve’ item and does not reduce the carrying amount of the loan.
(**) Including the provision for legal risk regarding foreign currency mortgage loans in the amount of PLN 1 725 million.

The currency structure for the Loans and advances to customers item is presented in Note 46.4 in the section on currency risk.

Receivables from finance leases

As a lessor, the Group concludes contracts classified as finance leases, the main subject of which are means of transport, machinery and technical equipment. The main lessor in the Group is Pekao Leasing Sp. z o.o.

In 2023, the Group recognized a gain on sale of the right-of-use assets in the amount of PLN 4 million (in 2022 a gain amounted to PLN 4 million), presented in ‘Other operating income’.

In 2023, the Group recognized interest income on finance lease receivables in the amount of PLN 856 million (in 2022 – PLN 572 million).

The tables below present the maturity analysis of lease receivables, presenting the undiscounted lease payments to be received after the balance sheet date.

FINANCE LEASES UNDER IFRS 16 31.12.2023 31.12.2022
Up to 1 year 4,382 3,734
Between 1 and 2 years 3,008 2,780
Between 2 and 3 years 2,259 2,068
Between 3 and 4 years 1,353 1,169
Between 4 and 5 years 713 628
Over 5 years 868 870
Total undiscounted lease payments 12,583 11,249
Unearned interest income -1,400 -1,349
Net investment in the lease 11,183 9,900
Impairment allowances -248 -201
Carrying amount 10,935 9,699
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