Other operating income and expense includes income and expense not related directly to banking activity. Other operating income mainly includes gains on sale of housing investments, sale or liquidation of non-current assets and foreclosed collateral, sale of shares of a subsidiary, recovered non-performing loans, legal damages, fines and penalties, income from lease/rental of properties. Other operating expense mainly
includes losses on sale or liquidation of non-current assets, including foreclosed collateral, costs of debt collection and donations.
Other operating income and expense in relation to the Group entities include also income from sale of finished goods, goods for resale and raw materials, and the corresponding costs of their production.
Income from construction services (real estate development activities) is recognised on a completed contract basis, which involves recognition of all costs related to the housing investments that are incurred during the period of construction as work-in-progress. Payments received on account of a purchase of apartments are shown within deferred income.
|OTHER OPERATING INCOME||2016||2015|
|gain on sale of products and services||265.6||200.4|
|gain on sale of subsidiaries*||77.0||-|
|sale and disposal of tangible fixed assets, intangible assets and assets held for sale**||85.6||42.2|
|damages, penalties and fines received||80.2||53.7|
|recovery of expired and written-off receivables||7.0||43.0|
|other operating income||106.6||150.5|
* Sale of the company ‘Fort Mokotów Inwestycje’
**The item ‘Gains on sale and disposal of fixed assets, intangible assets and assets held for sale’ includes the gain on the sale of land of the Qualia Development Sp. z o.o. Group of PLN 37.0 million.
|OTHER OPERATING EXPENSE||2016||2015|
|costs of sale of products and services||(149.6)||(91.2)|
|costs of sale and disposal of tangible fixed assets, intangible assets and assets held for sale||(32.9)||(28.7)|