42. Contingent liabilities and off-balance sheet liabilities received

42.1 Securities covered with underwriting agreements (maximum liability of the Group to acquire securities):

Issuer of securities underwritten	Type of underwritten securities	Off-balance sheetliabilities	Contract period
As at 31 December 2015
Company A	corporate bonds	1 950 000	31.12.2020
Company B	corporate bonds	1 055 000	31.07.2020
Company C	corporate bonds	342 700	15.06.2022
Company D	corporate bonds	80 600	31.12.2022
Company E	corporate bonds	60 000	23.11.2021
Company F	corporate bonds	28 224	31.12.2029
Company G	corporate bonds	17 900	31.12.2026
Company H	corporate bonds	4 424	31.01.2016
Company I	corporate bonds	3 403	30.09.2030
Total		3 542 251
As at 31 December 2014
Company B	corporate bonds	1 055 000	31.07.2020
Company C	corporate bonds	1 049 000	15.06.2022
Company D	corporate bonds	91 700	31.12.2022
Company J	corporate bonds	50 000	19.12.2022
Total		2 245 700

contingent_liabilities_and_offbalance_sheet_1_pkobp.xlsx

All contracts relates to the Agreement for Organisation, Conducting and Servicing of the Bond Issuance Programme.

All securities of the Bank under the sub-issue (underwriting) programme have an unlimited transferability, are not listed on the stock exchange and are not traded on a regulated OTC market.

42.2 Contractual commitments

As at 31 December 2015 the value of contractual commitments concerning intangible assets amounted to PLN 178 899 thousand (as at 31 December 2014 it amounted to PLN 200 662 thousand).

As at 31 December 2015 the value of contractual commitments concerning tangible fixed assets amounted to PLN 50 278 thousand (as at 31 December 2014 it amounted to PLN 96 772 thousand).

42.3 Loan commitments granted

By nominal value	31.12.2015	31.12.2014
Credit lines and limits
to financial entities	2 306 177	533 975
to non-financial entities	36 157 856	34 540 558
to public entities	4 080 379	3 258 574
Total	42 544 412	38 333 107
of which: irrevocable loan commitments	30 513 878	27 730 846

contingent_liabilities_and_offbalance_sheet_2_pkobp.xlsx

42.4 Guarantee liabilities granted

	31.12.2015	31.12.2014
Guarantees in domestic and foreign trading	7 555 837	9 248 321
to financial entities	85 504	160 298
to non-financial entities	7 463 037	9 066 109
to public entities	7 296	21 914
Guarantees and pledges granted – domestic corporate bonds	5 430 649	4 516 150
to non-financial entities	4 930 649	4 514 050
to financial entities	500 000	2 100
Letters of credit granted	1 838 101	702 768
to non-financial entities	1 838 000	702 768
to public entities	101	-
Guarantees and pledges granted – payment guarantee to financial entities	143 646	17 278
Guarantees and pledges granted – domestic municipal bonds to public entities	59 320	55 008
Total	15 027 553	14 539 525
of which: good performance guarantees granted	2 378 395	1 942 582

contingent_liabilities_and_offbalance_sheet_3_pkobp.xlsx

In the years ended on 31 December 2015 and 31 December 2014 respectively, the Bank and its subsidiaries did not issue any guarantees in respect of loans or advances and did not issue any guarantees to a subsidiary or other entity thereof with a total value accounting for 10% of the Group’s equity.

Information on provisions for off-balance sheet financial liabilities and guarantees is included in the note 40 ‘Provisions’.

42.5 Liabilities granted by maturity

31 December 2015

	up to 1 month	1 - 3 months	3 months- 1 year	1 - 5 years	Over 5 years	Total
Financial liabilities granted	28 969 262	814 785	3 746 741	2 897 444	6 116 180	42 544 412
Guarantee liabilities granted	1 415 091	1 604 025	2 220 096	9 113 673	674 668	15 027 553
Total	30 384 353	2 418 810	5 966 837	12 011 117	6 790 848	57 571 965

contingent_liabilities_and_offbalance_sheet_4_pkobp.xlsx

31 December 2014

	up to 1 month	1 - 3 months	3 months- 1 year	1 - 5 years	Over 5 years	Total
Financial liabilities granted	23 931 316	958 392	4 627 057	3 832 809	4 983 533	38 333 107
Guarantee liabilities granted	225 396	1 336 294	2 552 934	8 595 674	1 829 227	14 539 525
Total	24 156 712	2 294 686	7 179 991	12 428 483	6 812 760	52 872 632

contingent_liabilities_and_offbalance_sheet_5_pkobp.xlsx

42.6 Off-balance sheet liabilities received

By nominal value	31.12.2015	31.12.2014
Financial	505 350	2 004 673
Guarantees*	6 831 132	4 725 751
Total	7 336 482	6 730 424

contingent_liabilities_and_offbalance_sheet_6_pkobp.xlsx

* The position off-balance sheet guarantees received includes mainly guarantees under the programme to support micro, small and medium-sized enterprises - a guarantee of de minimis.

Due to the provisions of the Agreement which require the Nordea Bank AB (publ) Group to participate in the default risk of the Mortgage Portfolio, on 1 April 2014, PKO Bank Polski SA and Nordea Bank AB (publ) concluded a special indemnity agreement (the ‘Special Indemnity Agreement’), according to which Nordea Bank AB (publ) will cover, for a period of 4 years following the Closing Date, 50% of the excess of the Mortgage Portfolio cost of risk excess over the annual cost of risk set at 40 basis points for each year of the above-mentioned four-year contract period of the Special Indemnity Agreement.

As a part of works related to the settlement of the transaction, the Bank has made a valuation of the Special Indemnity Agreement on the basis of conducted analysis of probability of cash flows arising from the Agreement. The estimated expected value is zero.

Right to sell or pledge collateral established for the Group.

As at 31 December 2015 and as at 31 December 2014, there was no collateral established for the Group which the Group was entitled to sell or encumber with another pledge in the event of fulfilment of all obligations by the owner of the collateral.