7. Fee and commission income and expenses
Accounting policies
The Group recognizes fee and commission income that is not accounted for using the effective interest rate in such a manner so as to reflect the transfer of the goods or services promised to a customer in an amount reflecting the consideration to which – in accordance with the Group’s expectations – it will be entitled in return for the goods or services in accordance with the five stage model for recognizing revenue.
2019
Fee and commission income includes one-off amounts charged by the Group for services not related directly to the creation of financial assets, as well as amounts charged by the Group for services performed, which are recognized on a straight-line basis. Fee and commission income also includes fees and commissions recognized on a straightline basis, received on loans and advances granted with an unspecified schedule of future cash flows for which the effective interest rate cannot be determined.
Upon concluding a contract, the Bank assesses whether it will be capable of fulfilling the commitment to perform over time or at a point in time.
The accounting policies for recognizing commission income on sales of insurance products linked to loans and advances are described in note “Interest income and expenses”.
Financial information
| FEE AND COMMISSION INCOME | 2019 | 2018 |
|---|---|---|
| Loans and insurance | 866 | 761 |
| lending | 711 | 636 |
| offering insurance products | 155 | 125 |
| Investment funds, pension funds and brokerage activities | 740 | 833 |
| servicing investment funds and OFE (including management fees) | 545 | 640 |
| servicing and selling investment and insurance products | 43 | 51 |
| brokerage activities | 152 | 142 |
| Cards | 1 340 | 1 243 |
| Bank accounts and other | 1 184 | 1 205 |
| servicing bank accounts | 850 | 836 |
| cash operations | 75 | 90 |
| servicing foreign mass transactions | 99 | 104 |
| selling and distributing court fee stamps | – | 1 |
| customer orders | 48 | 46 |
| fiduciary services | 6 | 6 |
| other | 106 | 122 |
| Total | 4 130 | 4 042 |
| FEE AND COMMISSION EXPENSE | 2019 | 2018 |
|---|---|---|
| Investment funds, pension funds and brokerage activities | (34) | (39) |
| Cards | (775) | (713) |
| Bank accounts and other | (274) | (277) |
| commission paid to external entities for product sales | (46) | (55) |
| cost of construction investment supervision and property valuation | (46) | (44) |
| clearing services | (35) | (31) |
| commissions for operating services provided by banks | (11) | (15) |
| sending short text messages (SMS) | (33) | (27) |
| other | (103) | (105) |
| Total | (1 083) | (1 029) |
| 2019 | ||||
|---|---|---|---|---|
| FEE AND COMMISSION INCOME BY SEGMENT | Retail segment | Corporate and investment segment |
Transfer centre and other |
Total |
| Loans and insurance | 621 | 245 | – | 866 |
| lending | 479 | 232 | – | 711 |
| offering insurance products | 142 | 13 | – | 155 |
| Investment funds, pension funds and brokerage activities | 582 | 158 | – | 740 |
| servicing investment funds and OFE (including management fees) | 492 | 53 | – | 545 |
| servicing and selling investment and insurance products | 43 | – | – | 43 |
| brokerage activities | 47 | 105 | – | 152 |
| Cards | 1 286 | 54 | – | 1 340 |
| Bank accounts and other | 961 | 223 | – | 1 184 |
| servicing bank accounts | 742 | 108 | – | 850 |
| cash operations | 45 | 30 | – | 75 |
| servicing foreign mass transactions | 64 | 35 | – | 99 |
| customer orders | 27 | 21 | – | 48 |
| fiduciary services | – | 6 | – | 6 |
| other | 83 | 23 | – | 106 |
| Total | 3 450 | 680 | – | 4 130 |
| 2018 | ||||
|---|---|---|---|---|
| FEE AND COMMISSION INCOME BY SEGMENT | Retail segment | Corporate and investment segment |
Transfer centre and other |
Total |
| Loans and insurance* | 558 | 203 | – | 761 |
| lending | 443 | 193 | – | 636 |
| offering insurance products | 115 | 10 | – | 125 |
| Investment funds, pension funds and brokerage activities | 719 | 114 | – | 833 |
| servicing investment funds and OFE (including management fees) | 631 | 9 | – | 640 |
| servicing and selling investment and insurance products | 51 | – | – | 51 |
| brokerage activities | 37 | 105 | – | 142 |
| Cards* | 1 178 | 65 | – | 1 243 |
| Bank accounts and other | 961 | 244 | – | 1 205 |
| servicing bank accounts | 752 | 84 | – | 836 |
| cash operations | 61 | 29 | – | 90 |
| servicing foreign mass transactions | 61 | 43 | – | 104 |
| selling and distributing court fee stamps | – | 1 | – | 1 |
| customer orders | 27 | 19 | – | 46 |
| fiduciary services | – | 6 | – | 6 |
| other | 60 | 602 | – | 122 |
| Total | 3 416 | 626 | – | 4 042 |
*In order to ensure comparability , the Group changed the data presented in “Loans and insurance” and “Cards” for 2018. The change consists in a transfer between segments and results from harmonization of the policies and a more precise division into income categories.