KB prezent. angl - Komerční banka

120 ➔121
Consolidated Financial Statements
under IFRS
Notes to the Consolidated Financial Statements
under IFRS as of 31 December 2003
1. Principal activities
The Financial Group of Komerční banka, a. s. (the “Group”) consists of Komerční banka, a. s. (the “Bank”) and 11 subsidiaries and
associated undertakings. The parent enterprise of the Group is the Bank which is incorporated in the Czech Republic as a joint stock
company. The principal activities of the Bank are as follows:
I. Providing loans, advances and guarantees in Czech Crowns and foreign currencies;
II. Acceptance and placement of deposits in Czech Crowns and foreign currencies;
III. Providing current and term deposit accounts in Czech Crowns and foreign currencies;
IV. Providing banking services through an extensive branch network in the Czech Republic;
V. Treasury operations in the interbank market;
VI. Servicing foreign trade transactions;
VII. Investment banking.
The Bank generates a substantial proportion of the Group’s income and represents substantially all of the assets and liabilities of the Group.
The registered office address of the Bank is Na Příkopě 33/969, 114 07 Praha 1, Czech Republic.
In addition to its operations in the Czech Republic, the Group has operations in Slovakia through its subsidiary Komerční banka
Bratislava, a. s. and in the Netherlands through its subsidiary Komercni Finance, B. V. (a special purpose vehicle used to raise funds
for the Group on the international financial markets).
The Bank’s ordinary shares are publicly traded on the Prague Stock Exchange. Société Générale is the Bank’s majority shareholder,
holding 60.35 percent (2002: 60.35 percent) of the Bank’s issued share capital.
The main activities of subsidiary companies of the Bank as of 31 December 2003
Company’s name Direct holding Group holding Principal activity Registered
(%) (%) office
ALL IN, a. s. v likvidaci 100.0 100.0 Valuation services Prague
Investiční kapitálová společnost KB, a. s. 100.0 100.0 Collective investment scheme manager Prague
Penzijní fond Komerční banky, a. s. 100.0 100.0 Pension fund Prague
Komerční banka Bratislava, a. s. 100.0 100.0 Banking services Bratislava
Komerční pojišťovna, a. s. 100.0 100.0 Insurance activities Prague
Komercni Finance, B. V. 100.0 100.0 Finance Amsterdam
Factoring KB, a. s. 100.0 100.0 Factoring Prague
ASIS, a. s. v likvidaci 100.0 100.0 Support activities (information technologies) Prague
MUZO, a. s. 49.9 49.9 Payment support services Prague
In June 2003, the Group sold its 100 percent equity interest in Reflexim, a. s.
ASIS, a. s., in which the Bank maintains a 100 percent holding, was placed into liquidation in June 2003. The liquidation is expected to
be completed by mid-2004.
The Bank has consolidated MUZO, a. s. using the full consolidated method because management considers that the Bank, directly or
indirectly, had the power to exercise control over the financial and operating policies of MUZO.
The Bank does not include Penzijní fond Komerční banky, a. s. in consolidation because the company is subject to regulatory
restrictions regarding the distribution of profits.
In December 2003, the Bank entered into an agreement to sell 52.6 percent of the issued share capital of MUZO, a. s. (49.9 percent
held directly by the Bank, and 2.7 percent held indirectly by the Bank through an option contract) for USD 34.7 million. The transaction
was settled and its result was recognised in the Bank’s books in February 2004.