Net impairment losses on loans and advances in Retail Banking stood at PLN 342.6 million in 2017 compared with PLN 284.9 million in 2016. Provisions increased as a result of the higher volume and changes in the structure of the retail credit portfolio with a growing volume of non-mortgage loans (unsecured loans).
Net impairment losses on loans and advances in Corporates and Financial Markets stood at PLN 166.0 million in 2017 compared with PLN 78.2 million in 2016. The low level of provisions reported in 2016 was caused by the release of loan loss provisions related to the sale of non-performing receivables and payment of the loan insurance by KUKE (Export Credit Insurance Corporation), whereas loan loss provisions in 2017 reached a more standardised level.
