40.3 Quantitative data

Reference Areas:
Health
Investments
Banking
Best Pratices in PZU

Other provisions31 December 201731 December 2016
Short-term279352
Long-term21815
Total other provisions497367
Movement in other provisions in the year ended 31 December 2017Beginning of the periodIncreaseUtilizationReversalChange in the composition of the GroupOther changesEnd of the period
Provision for restructuring expenses25261(222)(28)--63
Provision for disputed claims and potential liabilities1116(7)(1)56782
Provision for penalties imposed by the Office of Competition and Consumer Protection 1)58--(1)--57
Provision for the costs of closing the Graphtalk project6-----6
Provisions for guarantees and sureties given1876-(48)214-260
Provision for PTE PZU’s reimbursement of undue fees to the Social Insurance Institution9--- --9
Other1326(4)(3)24(36)20
Total other provisions367179(233)(81)294(29)497
Movement in other provisions in the year ended 31 December 2016Beginning of the periodIncreaseUtilizationReversalChange in the composition of the GroupEnd of the period
Provision for restructuring expenses3200(6)-55252
Provision for disputed claims and potential liabilities43(1)-511
Provision for penalties imposed by the Office of Competition and Consumer Protection 1)58-  -  -  -58
Provision for the costs of closing the Graphtalk project6----6
Provisions for guarantees and sureties given519-(16)1018
Provision for PTE PZU’s reimbursement of undue fees to the Social Insurance Institution9-- - -9
Other237(8)(9)-13
Total other provisions108229(15)(25)70367

1) The main component of the “Provision for penalties imposed by the Office of Competition and Consumer Protection” is explained in section 47.2.

Provisions for guarantees and sureties given

This item includes provisions recognized by banks for the potential loss of economic benefits resulting from off-balance sheet exposures (e.g. granted guarantees or credit exposures).

Provision for restructuring expenses

The item includes mainly a restructuring provision recognized by Alior Bank, earmarked for the payment of statutory severance pay in connection with group layoffs and for the so-called “additional compensation” arising out of an agreement concluded with trade unions and a provision for the branch network restructuring costs and the abandonment of the branches that are located too close to franchise outlets (the provision covers the costs of compensation and costs related to the physical departure from the branch and restoration to its original condition). As at 31 December 2017, the amount of the provision was PLN 39 million (PLN 250 million as at 31 December 2016).

The remaining part of the balance (PLN 24 million) is related to the restructuring process conducted in PZU i PZU Życie. Additional information on this matter is presented in item 50.3.

 

Facebook Twitter Google Plus All