Repurchase agreements Securities delivered under repurchase agreements are kept on the balance sheet and the amount received, representing the debt to the transferee, is recorded as a liability on the balance sheet. Securities received under repurchase agreements are not recorded on the balance sheet but the amount disbursed, representing the claim on the transferor, is recorded as an asset on the balance sheet. Securities delivered under repurchase agreements are subject to the accounting treatments corresponding to the category of portfolio from which they originate. E) Fixed assets Property, plant and equipment are recorded at their historical cost and in accordance with the component accounting method; repairs, maintenance and small items are recognised in expenses for the period. Intangible assets include business assets purchased, software, and lease rights, and are shown on the balance sheet at their historical cost. Business assets purchased and lease rights are not amortised, and are subject to an impairment test. The depreciation and amortisation charges for other fixed assets are calculated on a straight-line basis. The depreciation and amortisation periods applied are as follows: Component Amortisation period Buildings 30 to 50 years Developments 6 to 10 years Furniture & equipment 5 to 10 years Transport equipment 5 years IT equipment 3 years Software and other 1 to 7 years intangible assets F) Provisions for risks relating to clients Provisions for client-related risk are recorded in accordance with the risk of loss as soon as those risks are known; these provisions are deducted from assets, where they relate to non-performing receivables. In other cases, they are recorded as liabilities. G) Retirement pensions Retirement pensions payable under the mandatory pension schemes to which employers and employees contribute are paid by specialised external bodies. The contributions due for the financial year are recognised in the income statement for the period. In 2025, the Bank increased the provision for retirement benefits to €3,691,000. In December 2020, the IFRS IC received a question on the methodology for calculating actuarial liabilities for defined benefit plans and on the vesting period to be used where there is a cap on the number of years of service giving rise to the granting of rights. Among several approaches analysed, the IFRS IC retained the approach of straight-lining over the capped period prior to the retirement age at which the rights can be obtained. The plans affected by the IFRS IC IAS 19 decision are those for which: - The granting of rights depends on being present in the company at the time of retirement (with loss of all rights in the event of early retirement); - Entitlements depend on seniority, but are capped after a certain number of years of service. H) Other employee commitments The bonuses for long-service awards paid to employees are included in personnel expenses. The provision corresponding to the entitlements earned by staff in connection with these bonuses amounted to €1,310,000 at the end of the financial year. Annual Report 2025 155
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