5.3 Explanation of differences between the 2016 annual consolidated financial statements and these consolidated financial statements

Due to the completion of the final purchase price allocation of the acquisition of Bank BPH’s Core Business, a retroactive restatement of data as at 31 December 2016 has been performed. More information on this purchase price allocation is presented in item 2.4.5.

In order to unify the presentation of revenues earned by mutual fund companies in the PZU Group, the revenues earned by Money Makers TFI SA (Alior Bank’s subsidiary) from other operating income to revenue from commissions and fees.

To ensure better reflection of the economic nature of the transactions in derivative instruments, the presentation of interest income and expenses has been changed for those instruments by netting interest income and expenses.

To unify the presentation of IT costs, the costs incurred by Alior Bank were transferred from other operating expenses to administrative expenses.

To reflect better the economic character of receivables on account of deposits and guarantees paid, these receivables have been transferred from other assets to receivables.

To reflect better the economic character of the costs incurred, some costs of services purchased by banks have been transferred from fees and commission expenses to administrative expenses.

The following tables present the impact of the aforementioned changes on the individual items of the consolidated financial statements.

XLS CSV HTML

<!DOCTYPE html>										<html>											<head>												<meta charset="utf-8" />												<title>Table</title>												<style>												table {border-collapse: collapse;}												th, td {text-align: right; padding: 5px;}												.sx-column {text-align: left;}												.center {text-align: center;}												.total {background: #00a8e4;}												</style>											</head>											<body>												<table><thead><tr class="even"><td>Assets</td><td>31 December 2016 (historical)</td><td>Adjustment</td><td>31 December 2016 (restated)</td><td>1 January 2016 (historical)</td><td>Adjustment</td><td>1 January 2016 (restated)</td></tr></thead><tbody><tr class="odd"><td>Other assets</td><td>871</td><td>7 1) (12) 2)</td><td>866</td><td>813</td><td>(12) 2)</td><td>801</td></tr><tr class="even"><td>Financial assets</td><td>105,300</td><td>(14) 1)</td><td>105,286</td><td>89,229</td><td>-</td><td>89,229</td></tr><tr class="odd"><td class="indenta-livello-2">Available for sale</td><td>11,635</td><td>17 1)</td><td>11,652</td><td>7,745</td><td>-</td><td>7,745</td></tr><tr class="even"><td class="indenta-livello-2">Loans</td><td>54,365</td><td>(31) 1)</td><td>54,334</td><td>43,326</td><td>-</td><td>43,326</td></tr><tr class="odd"><td>Deferred tax assets</td><td>624</td><td>9 1)</td><td>633</td><td>369</td><td>-</td><td>369</td></tr><tr class="even"><td>Receivables</td><td>5,703</td><td>(51) 1) 12 2)</td><td>5,664</td><td>3,338</td><td>12 2)</td><td>3,350</td></tr><tr class="total odd"><td>Total assets</td><td>125,345</td><td>(49) 1)</td><td>125,296</td><td>105,397</td><td>-</td><td>105,397</td></tr></tbody></table>											</body>										</html>

Assets	31 December 2016 (historical)	Adjustment	31 December 2016 (restated)	1 January 2016 (historical)	Adjustment	1 January 2016 (restated)
Other assets	871	7 1) (12) 2)	866	813	(12) 2)	801
Financial assets	105,300	(14) 1)	105,286	89,229	-	89,229
Available for sale	11,635	17 1)	11,652	7,745	-	7,745
Loans	54,365	(31) 1)	54,334	43,326	-	43,326
Deferred tax assets	624	9 1)	633	369	-	369
Receivables	5,703	(51) 1) 12 2)	5,664	3,338	12 2)	3,350
Total assets	125,345	(49) 1)	125,296	105,397	-	105,397

1) Change described in section 5.3.1.

2) Change described in section 5.3.5.

XLS CSV HTML

<!DOCTYPE html>										<html>											<head>												<meta charset="utf-8" />												<title>Table</title>												<style>												table {border-collapse: collapse;}												th, td {text-align: right; padding: 5px;}												.sx-column {text-align: left;}												.center {text-align: center;}												.total {background: #00a8e4;}												</style>											</head>											<body>												<table><thead><tr class="even"><td>Equity and liabilities</td><td>31 December 2016 (historical)</td><td>Adjustment</td><td>31 December 2016 (restated)</td><td>1 January 2016 (historical)</td><td>&nbsp; Adjustment</td><td>1 January 2016 (restated)</td></tr></thead><tbody><tr class="total odd"><td>Equity</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr><tr class="even"><td>Equity attributable to equity holders of the Parent</td><td>13,010</td><td>(12) 1)</td><td>12,998</td><td>12,924</td><td>-</td><td>12,924</td></tr><tr class="odd"><td class="indenta-livello-2">Retained earnings</td><td>2,055</td><td>(12) 1)</td><td>2,043</td><td>2,696</td><td>-</td><td>2,696</td></tr><tr class="even"><td class="indenta-livello-3">Net profit</td><td>1,947</td><td>(12) 1)</td><td>1,935</td><td>-</td><td>-</td><td>-</td></tr><tr class="odd"><td>Non-controlling interest</td><td>4,117</td><td>(31) 1)</td><td>4,086</td><td>2,194</td><td>-</td><td>2,194</td></tr><tr class="total even"><td>Total equity</td><td>17,127</td><td>(43) 1)</td><td>17,084</td><td>15,118</td><td>-</td><td>15,118</td></tr><tr class="odd"><td>Other liabilities</td><td>4,997</td><td>(6) 1)</td><td>4,991</td><td>3,570</td><td>-</td><td>3,570</td></tr><tr class="total even"><td>Total liabilities</td><td>108,218</td><td>(6) 1)</td><td>108,212</td><td>90,279</td><td>-</td><td>90,279</td></tr><tr class="total odd"><td>Total equity and liabilities</td><td>125,345</td><td>(49) 1)</td><td>125,296</td><td>105,397</td><td>-</td><td>105,397</td></tr></tbody></table>											</body>										</html>

Equity and liabilities	31 December 2016 (historical)	Adjustment	31 December 2016 (restated)	1 January 2016 (historical)	Adjustment	1 January 2016 (restated)
Equity
Equity attributable to equity holders of the Parent	13,010	(12) 1)	12,998	12,924	-	12,924
Retained earnings	2,055	(12) 1)	2,043	2,696	-	2,696
Net profit	1,947	(12) 1)	1,935	-	-	-
Non-controlling interest	4,117	(31) 1)	4,086	2,194	-	2,194
Total equity	17,127	(43) 1)	17,084	15,118	-	15,118
Other liabilities	4,997	(6) 1)	4,991	3,570	-	3,570
Total liabilities	108,218	(6) 1)	108,212	90,279	-	90,279
Total equity and liabilities	125,345	(49) 1)	125,296	105,397	-	105,397

1) Change described in section 5.3.1.

XLS CSV HTML

<!DOCTYPE html>										<html>											<head>												<meta charset="utf-8" />												<title>Table</title>												<style>												table {border-collapse: collapse;}												th, td {text-align: right; padding: 5px;}												.sx-column {text-align: left;}												.center {text-align: center;}												.total {background: #00a8e4;}												</style>											</head>											<body>												<table><thead><tr class="even"><td>Consolidated profit and loss account</td><td>1 January – 31 December 2016 (historical)</td><td>Adjustment</td><td>1 January – 31 December 2016 (restated)</td></tr></thead><tbody><tr class="odd"><td>Revenue from commissions and fees</td><td>808</td><td>9 <sup>1)</sup></td><td>817</td></tr><tr class="even"><td>Net investment income</td><td>4,165</td><td>(54) <sup>2)</sup></td><td>4,111</td></tr><tr class="odd"><td>Net movement in fair value of assets and liabilities measured at fair value</td><td>357</td><td>(22) <sup>2)</sup></td><td>335</td></tr><tr class="even"><td>Other operating income</td><td>1,388</td><td>(9) <sup>1)</sup> (43) <sup>3)</sup></td><td>1,336</td></tr><tr class="odd"><td>Fee and commission expense</td><td>(285)</td><td>12 <sup>4)</sup></td><td>(273)</td></tr><tr class="even"><td>Interest expense</td><td>(773)</td><td>76 <sup>2)</sup></td><td>(697)</td></tr><tr class="odd"><td>Administrative expenses</td><td>(2,843)</td><td>(68) <sup>5)</sup> (12) <sup>4)</sup></td><td>(2,923)</td></tr><tr class="even"><td>Other operating expenses</td><td>(2,128)</td><td>68<sup> 5)</sup></td><td>(2,060)</td></tr><tr class="total odd"><td>Operating profit</td><td>3,034</td><td>(43) <sup>3)</sup></td><td>2,991</td></tr><tr class="total even"><td>Net profit</td><td>2,417</td><td>(43) <sup>3)</sup></td><td>2,374</td></tr><tr class="odd"><td>- profit attributable to the equity holders of the Parent Company</td><td>1,947</td><td>(12)<sup> 3)</sup></td><td>1,935</td></tr><tr class="even"><td>- profit (loss) attributed to holders of non-controlling interest</td><td>470</td><td>(31) <sup>3)</sup></td><td>439</td></tr></tbody></table>											</body>										</html>

Consolidated profit and loss account	1 January – 31 December 2016 (historical)	Adjustment	1 January – 31 December 2016 (restated)
Revenue from commissions and fees	808	9 ¹⁾	817
Net investment income	4,165	(54) ²⁾	4,111
Net movement in fair value of assets and liabilities measured at fair value	357	(22) ²⁾	335
Other operating income	1,388	(9) ¹⁾ (43) ³⁾	1,336
Fee and commission expense	(285)	12 ⁴⁾	(273)
Interest expense	(773)	76 ²⁾	(697)
Administrative expenses	(2,843)	(68) ⁵⁾ (12) ⁴⁾	(2,923)
Other operating expenses	(2,128)	68⁵⁾	(2,060)
Operating profit	3,034	(43) ³⁾	2,991
Net profit	2,417	(43) ³⁾	2,374
- profit attributable to the equity holders of the Parent Company	1,947	(12)³⁾	1,935
- profit (loss) attributed to holders of non-controlling interest	470	(31) ³⁾	439

1) Change described in section 5.3.2.

2) Change described in section 5.3.3.

3) Change described in section 5.3.1.

4) Change described in section 5.3.6.

5) Change described in section 5.3.4.

XLS CSV HTML

<!DOCTYPE html>										<html>											<head>												<meta charset="utf-8" />												<title>Table</title>												<style>												table {border-collapse: collapse;}												th, td {text-align: right; padding: 5px;}												.sx-column {text-align: left;}												.center {text-align: center;}												.total {background: #00a8e4;}												</style>											</head>											<body>												<table><thead><tr class="even"><td>Consolidated cash flow statement</td><td>1 January – 31 December 2016 (historical)</td><td>Adjustment<sup>1)</sup></td><td>1 January – 31 December 2016 (restated)</td></tr></thead><tbody><tr class="odd"><td>Profit before tax</td><td>3,031</td><td>(43)</td><td>2,988</td></tr><tr class="even"><td>Movement in loan receivables from clients</td><td>(5,190)</td><td>31</td><td>(5,159)</td></tr><tr class="odd"><td>Movement in receivables</td><td>(2,338)</td><td>39</td><td>(2,299)</td></tr><tr class="even"><td>Change in liabilities</td><td>1,967</td><td>(6)</td><td>1,961</td></tr><tr class="odd"><td>Other adjustments</td><td>3,163</td><td>(21)</td><td>3,142</td></tr><tr class="total even"><td>Net cash flows from operating activities</td><td>4,237</td><td>-</td><td>4,237</td></tr></tbody></table>											</body>										</html>

Consolidated cash flow statement	1 January – 31 December 2016 (historical)	Adjustment¹⁾	1 January – 31 December 2016 (restated)
Profit before tax	3,031	(43)	2,988
Movement in loan receivables from clients	(5,190)	31	(5,159)
Movement in receivables	(2,338)	39	(2,299)
Change in liabilities	1,967	(6)	1,961
Other adjustments	3,163	(21)	3,142
Net cash flows from operating activities	4,237	-	4,237

1) Change described in section 5.3.1.

Search form

5.3 Explanation of differences between the 2016 annual consolidated financial statements and these consolidated financial statements

YouTube

Blog

Blog CSR

Facebook

Facebook

Web Help

Investor Relations Team