The Group classifies financial instrument to this category when:
1) it is a hybrid instrument which includes one or more embedded derivatives qualifying for separate recognition, and the embedded derivative financial instrument cannot significantly change the cash flows resulting from the host contract or its separation from the hybrid instrument is forbidden;
2) such classification of an instrument eliminates or significantly reduces the inconsistency in measurement or recognition (the so-called accounting mismatch resulting from different measurement methods of assets and liabilities and different recognition of the related gains or losses), e.g. financial instruments economically hedged without applying hedge accounting;
3) the results on a category of financial instruments are assessed on a fair value basis, pursuant to the Group’s risk management principles or investment strategy.
The Group has a policy of financial assets and liabilities management according to which financial assets and liabilities classified as held for trading portfolio and financial assets and liabilities designated upon initial recognition at fair value through profit and loss portfolio are managed separately.
Financial instruments classified in this category are designated at fair value with changes in fair value recognised in profit and loss in net income from financial instruments at fair value through profit and loss.
|Financial instruments designated upon initial recognition at fair value through profit and loss||31.12.2016||31.12.2015|
|Debt securities||12 204.1||13 337.4|
|NBP money bills||9 078.8||10 036.9|
|Treasury bonds PLN||1 811.9||1 934.8|
|foreign currency Treasury bonds||1 074.8||1 118.0|
|municipal bonds PLN||110.9||115.9|
|foreign currency municipal bonds||127.7||131.3|
|corporate bonds PLN||-||0.5|
|Units in ICF (insurance capital funds) related to insurance products belonging to the group of investment poducts where the risk is borne by the policyholder||1 733.1||1 816.7|
|Total||13 937.2||15 154.1|
|Debt securities by maturity (in carrying amount)||31.12.2016||31.12.2015|
|up to 1 month||9 088.9||10 073.0|
|1 month - 3 months||-||6.5|
|3 months - 1 year||171.5||371.9|
|1 year - 5 years||2 836.8||2 510.2|
|over 5 years||106.9||375.8|
|Total||12 204.1||13 337.4|