Ársskýrsla Landsbankans - Landsbankinn

Notes to the Consolidated Financial Statements
Page Page
General Capital management
1 Reporting entity.......................................................................................... 110 10 42 Capital management.................................................................................. 150 50
2 Basis of preparation................................................................................... 110-111 10-11 43 Capital base and capital adequacy ratio............................................... 150 50
3 Accounting policies.................................................................................... 111-123 12-22
4 Estimates and judgements........................................................................ 123-125 22-25 Risk management
5 Operating segments................................................................................... 126 26 44 Material financial risks ............................................................................. 151 51
45 Risk management process ....................................................................... 151 51
Notes to the Consolidated Statement of Financial Position 46 Risk management framework.................................................................. 151-152 51-52
6 Classification and fair value of financial assets and liabilities....... 126-130 26-30 47 Risk management division........................................................................ 152 52
7 Cash and balances with Central Bank................................................... 131 31 48 Risk policy and appetite............................................................................ 152 52
8 Bonds and equities..................................................................................... 131 31 49 Effects of the financial crisis................................................................... 152-153 52-53
9 Derivative instruments and short positions......................................... 132 32 Credit risk
10 Loans and advances to financial institutions...................................... 132 32 50 Credit risk...................................................................................................... 153 53
11 Loans and advances to customers.......................................................... 132 32 51 Credit risk management............................................................................ 153 53
12 Investments in associates......................................................................... 133 33 52 Credit risk mitigation................................................................................. 154 54
13 Property and equipment............................................................................ 133 33 53 Credit risk measurement........................................................................... 155 55
14 Intangible assets......................................................................................... 134 34 54 Loan impairment......................................................................................... 155 55
15 Other assets.................................................................................................. 134 34 55 Maximum exposure to credit risk and concentration
16 Assets and liabilities classified as held for sale................................... 134-135 34-35 by industry sectors................................................................................ 156-157 56-57
17 Due to financial institutions and Central Bank................................... 135 35 56 Loans and advances by industry sectors............................................... 158 58
18 Deposits from customers.......................................................................... 135 35 57 Credit quality of financial assets............................................................ 158 58
19 Secured bonds.............................................................................................. 135 35 58 Loans and advances neither past due nor individually impaired.... 159 59
20 Contingent bond......................................................................................... 136 36 59 Loans and advances past due but not individually impaired........... 159 59
21 Tax assets and liabilities............................................................................ 136-137 36-37 60 Individually impaired loans and advances to financial
22 Other liabilities............................................................................................ 138 38 institutions and customers.................................................................. 160 60
23 Equity............................................................................................................. 138 39 61 Allowance for impairment on loans and advances to
financial institutions and customers................................................ 160 60
Notes to the Consolidated Income Statement 62 Renegotiated loans..................................................................................... 160 60
24 Net interest income.................................................................................... 140 40 63 Large exposures........................................................................................... 161 61
25 Net valuation change in loans and advanses ..................................... 140 40 64 Bonds and debt instruments.................................................................... 161 61
26 Net fee and commission income............................................................. 141 41 65 Derivative instruments............................................................................... 162 62
27 Net gain on financial assets designated as at fair value Liquidity risk
through profit or loss............................................................................ 141 41 66 Liquidity risk................................................................................................. 162 62
28 Net gain on financial assets and liabilities held for trading............ 141 41 67 Liquidity risk management....................................................................... 162 62
29 Dividend income.......................................................................................... 141 41 68 Maturity analysis of financial assets and liabilities........................... 163-164 63-65
30 Net foreign exchange gain (loss)............................................................ 142 42 69 Maturity analysis of financial assets and liabilities by currency.... 165-166 65-66
31 Other income and expenses..................................................................... 142 42 Market risk
32 Salaries and related expenses.................................................................. 142 42 70 Market risk.................................................................................................... 167 67
33 Other operating expenses......................................................................... 143 43 71 Market risk management.......................................................................... 167 67
34 Acquisition-related costs.......................................................................... 143 43 72 Interest rate risk.......................................................................................... 167-168 67-68
35 Income tax expense.................................................................................... 143 43 73 Sensitivity analysis for trading portfolios............................................. 169 69
74 Sensitivity analysis for non-trading portfolios.................................... 170 70
Other notes 75 CPI indexation risk (all portfolios).......................................................... 171 71
36 Litigation....................................................................................................... 144-145 44-45 76 Currency risk (all portfolios)..................................................................... 171 71
37 Pledged assets.............................................................................................. 145 45 77 FX-delta......................................................................................................... 171 71
38 Leasing........................................................................................................... 145-146 45-46 78 Concentration of currency risk ............................................................... 173-175 72-73
39 Fiduciary activities...................................................................................... 146 46 79 Sensitivity to currency risk....................................................................... 173 73
40 Related party transactions....................................................................... 147-149 47-49 80 Foreign exchange rates used................................................................... 174 74
41 Events after the reporting period........................................................... 149 49 Operational risk
81 Operational risk........................................................................................... 174
74
NBI hf. Consolidated Financial Statements 2010 9
All amounts are in ISK million
Allar upphæðir eru í milljónum króna Ársreikningur 2010 109