Interest income
and expense

Interest and similar income

  2011 2010
Interest income calculated using the effective interest rate method, with respect to financial assets, which are not designated at fair value through profit and loss, of which: 10 586 814 9 142 557
Income from loans and advances to customers 9 782 468 8 532 201
Income from investment securities available for sale 576 630 457 802
Income from investment securities held to maturity - 156
Income from placements with banks 218 731 148 494
Other  8 985 3 904
Other income, of which: 1 450 948 1 272 758
Income from derivative hedging instruments 814 275 649 116
Income from financial assets designated upon initial recognition at fair value through profit and loss 561 826 494 702
Income from trading assets 74 847 128 940
Total  12 037 762 10 415 315

In the ‘Income from derivative hedging instruments’ the Group presents interest income from derivative instruments designated for hedge accounting that are effective hedging instruments in the respect of cash flow hedges. Details of hedging relationships applied by the Group are included in Note 21 ‘Derivative hedging instruments’.

In the year ended 31 December 2011, interest income from impaired loans amounted to PLN 385 425 thousand (in the year ended 31 December 2010 it amounted to PLN 320 718 thousand). This income has been included in the position ‘Income from loans and advances to customers’.

Interest expense and similar charges

2011 2010
Interest expense calculated using the effective interest rate method, with respect to financial liabilities, which are not designated at fair value through profit and loss, of which: (4 426 762) (3 872 932)
Interest expense on amounts due to customers (4 101 578) (3 715 721)
Interest expense on debt securities in issue (278 178) (123 382)
Interest expense on deposits from banks (45 684) (30 276)
Premium expense on debt securities available for sale (1 322) (3 553)
Other expense (1 884) (26 217)
Total (4 428 646) (3 899 149)

Net gains and losses from financial assets and liabilities measured at amortised cost

  2011 2010
Net gains and losses from financial assets measured at amortised cost 8 744 562 7 462 566
Interest income from loans and advances to customers 9 782 468 8 532 201
Fee and commission income from loans and advances 582 100 528 824
Interest income from placements with banks 218 731 148 494
Net impairment allowance on loans and advances to customers and amounts due from banks measured at amortised cost (1 818 641) (1 728 268)
Net impairment allowance on finance lease receivables (20 096) (18 685)
Losses from financial liabilities measured at amortised cost (4 425 440) (3 869 379)
Interest expense on amounts due to customers (4 101 578) (3 715 721)
Interest expense on debt securities in issue (278 178) (123 382)
Interest expense on deposits from bank (45 684) (30 276)
Net result 4 319 122 3 593 187