Nordea Bank : Branch Poland Financial Statement 2021

Nordea Bank Abp Spółka Akcyjna Branch

in Poland

FINANCIAL STATEMENTS FOR THE PERIOD

FROM 1 January 2021 to 31 December 2021

Confidential

Confidential

Table of Contents
Statement of comprehensive income ...........................................................................................................................	3
Assets ...........................................................................................................................................................................	4
Liabilities .......................................................................................................................................................................	4
Cash flow statement .....................................................................................................................................................	5
Explanatory notes to the financial statements ..............................................................................................................	6
Note No.1 - General information about the Branch .....................................................................................................	6
Note No. 2 - Basis for preparing the financial statements ...........................................................................................	6
Note No. 3 - Description of the major accounting principles........................................................................................	9
Note No. 4 - Revenue from sales of services ............................................................................................................	16
Note No. 5 - Costs of salaries with overheads and other employee benefits ............................................................	17
Note No. 6 - IT services .............................................................................................................................................	17
Note No. 7 - Other administrative expenses..............................................................................................................	17
Note No. 8 - Depreciation ..........................................................................................................................................	17
Note No. 9 - Other operating costs and other operating revenue..............................................................................	18
Note No. 10 - Costs of operation and maintenance of the premises.........................................................................	18
Note No. 11 - Financial income and expenses ..........................................................................................................	18
Note No. 12 - Income tax ...........................................................................................................................................	19
Note No. 13 - Property, plant and equipment, including the right to use assets under lease....................................	22
Note No. 14 - Intangible assets..................................................................................................................................	24
Note No. 15 - Deferred income tax assets and deferred income tax liabilities ..........................................................	25
Note No. 16 - Long-term investments ........................................................................................................................	26
Note No. 17 - Trade receivables (including non-invoiced),non-invoiced receivables and other ..............................	26
Note No. 18 - Cash and cash equivalents .................................................................................................................	26
Note No. 19 - Long-term liabilities due to settlements with the Branch Headquarters ..............................................	26
Note No. 20 - Liabilities related to loans, borrowings and other debt instruments ....................................................	26
Note No. 21 - Contingent liabilities.............................................................................................................................	27
Note No. 22 - Provisions ............................................................................................................................................	28
Note No. 23 - Trade and other liabilities ....................................................................................................................	28
Note No. 24 - Lease ...................................................................................................................................................	29
Note No. 25 - Transactions with related companies ..................................................................................................	30
Note No. 26 - Financial instruments - fair value and other disclosures ....................................................................	33
Note No. 27 - Financial risk management - Credit risk .............................................................................................	34
Note No. 28 - Employment.........................................................................................................................................	36
Note No. 29 - Remuneration of the entity authorised to audit financial statements. .................................................	36
Note No. 30 - The impact of the COVID-19 pandemic on the financial situation of the entity...................................	36
Note No. 31 - Events after the end of the reporting period ........................................................................................	36

Confidential

Confidential

Nordea Bank ABP S.A.

Financial statements for the period from 1 January 2021 to 31 December 2021

Statement of comprehensive income

	Note	01.01.2021 -31.12.2021	01.01.2020 -31.12.2020
Revenues, of which:		903,854	917,263
Revenue from sales of services	4	895,401	908,557
Other operating revenue	9	8,366	8,706
Finance revenue	11	87	0
Expenses, of which:		(868,975)	(835,844)
Costs of salaries with overheads and other employee benefits	5	(711,716)	(651,481)
Amortisation/depreciation	8	(73,926)	(75,252)
Outsourced IT services	6	(24,896)	(29,628)
Consulting services		(135)	(2,103)
Other administrative expenses	7	(23,032)	(22,252)
Business travel expenses		(808)	(2,425)
Costs of operation and maintenance of the premises		(28,545)	(25,094)
Other operating expenses	9	(2,284)	(662)
Financial costs	11	(3,633)	(26,947)
Profit before tax		34,879	81,419
Income tax	12	(9,176)	(14,707)
Net profit for the reporting period		25,703	66,712
Other comprehensive income		1,068	0
Other comprehensive net income for the reporting period		0	0
Total comprehensive income for the reporting period		26,771	66,712

Confidential

The notes are an integral part of the financial statements.

3

Confidential

Nordea Bank ABP S.A.

Financial statements for the period from 1 January 2021 to 31 December 2021

Statement of financial position

Assets

	Note	31 December 2021	31 December 2020
Fixed assets		371,641	447,790
Property, plant and equipment, including assets under lease	13	346,136	430,923
Intangible assets	14	21	24
Deferred tax assets	15	21,742	16,843
Long-term investments	16	3,742	0
Operating assets		233,399	241,219
Trade receivables (including non-invoiced),non-invoiced	17	98,792	117,039
receivables and other
Short-term prepayments		1,962	4,256
Cash and cash equivalents	18	132,645	119,924
Total assets		605,040	689,009
Statement of financial position
Liabilities
	Note	31 December 2021	31 December 2020
Liabilities
Long-term liabilities		417,125	511,604
Long-term liabilities due to settlements with the Branch	19	145,631	181,782
Headquarters
Long-term lease liabilities	20	243,820	305,844
Other long-term liabilities	23	262	380
Long-term provisions	22	27,412	23,598
Short-term liabilities		187,915	177,405
Short-term lease liabilities	18	51,044	56,444
Trade liabilities	23	786	772
Income tax liabilities	23	6,362	20,999
Other short-term liabilities	23	128,457	98,036
Short-term provisions	22	1,266	1,154
Total liabilities		605,040	689,009

Confidential

The notes are an integral part of the financial statements.

4

Confidential

Nordea Bank ABP S.A.

Financial statements for the period from 1 January 2021 to 31 December 2021

Cash flow statement

	Note	31 December 2021	31 December 2020
Cash flows from operations		142,858	193,436
Net profit for the reporting year		26,771	66,712
Adjustments:		116,087	126,724
Depreciation of property, plant and equipment, including the rights to	13	73,922	75,241
use assets under lease
Depreciation of intangible assets	14	4	11
Foreign exchange loss		2,810	25,463
Loss from investment activities		1,510	124
Change in trade and other receivables	17	18,247	2,332
Change in accruals, prepayments and deferred income		2,294	(1,304)
Change in trade and other liabilities	23	30,317	10,362
Change in deferred tax assets	15	(4,899)	(10,986)
Income tax payments		(28,713)	(10,587)
Current tax liability	12	14,076	25,694
Change in provisions	22	3,926	7,412
Interest received		(87)	0
Interest paid		823	1,484
Other adjustments		1,858	1,479
Cash flows from investments		(4,928)	(18,960)
Disposal of property, plant and equipment		(68)	414
Purchase of property, plant and equipment	13	(4,860)	(19,374)
Cash flows from financial activities		(125,209)	(71,491)
Interest received		87	0
Loans and borrowings incurred (+)/repaid (-)	20	(170)	(19,888)
Expenses for repayment of interest on loans, borrowings and		(823)	(1 484)
leasing
Funds received to cover losses brought forward		(62,961)	0
Payment of lease liabilities	24	(61,342)	(50,119)
Total net cash flows		12,721	102,985
Balance sheet change in cash, of which:		12,721	102,929
Change in cash due to foreign exchange gains/losses		(52)	(46)
Cash at the beginning of the period		119,924	16,894
Cash at the end of the period		132,645	119,924

Confidential

The notes are an integral part of the financial statements.

5

Confidential