KB prezent. angl - Komerční banka

Social security costs include retirement pension insurance costs paid by the Group of CZK 45 million (2002: CZK 44 million) and costs
of CZK 42 million (2002: CZK nil) incurred in contributing to the employees’ capital life insurance scheme.
Wages, salaries and bonuses include a reserve of CZK 147 million (2002: CZK 67 million) for the loyalty benefits program established
in accordance with IAS 19 “Employee Benefits”. The aggregate balance of the reserve is CZK 214 million as of 31 December 2003
(2002: CZK 67 million).
Other administrative expenses comprise:
CZK million 2003 2002
Insurance of deposits and transactions 316 320
Marketing and representation 615 679
Staff costs 260 254
Property rent 531 564
Property maintenance 1,268 1,344
IT support 391 215
Office equipment 146 144
Telecommunications, post and shipping services 548 489
External advisory services 393 542
Other expenses 275 1,916
Total other administrative expenses 4,743 6,467
Insurance of deposits and transactions shown as a component of Other administrative expenses includes an estimated balance of
payments to the Deposit Insurance Fund of CZK 285 million (2002: CZK 272 million).
10. Depreciation and other provisions
Depreciation and other provisions comprise:
CZK million 2003 2002
Depreciation of tangible and intangible fixed assets 2,030 2,076
Other provisions for other assets, net (479) (266)
Total depreciation and other provisions 1,551 1,810
The balance of Other provisions for other assets, net shown above principally consists of the net release of provisions for assets, the
net charge for provisions for legal disputes and the net release of provisions for other receivables from customers. The 2002
comparative balance was restated pursuant to the methodology applicable for the year ended 31 December 2003 (refer to Note 8).
11. Restructuring costs
Following the change of control of the Group, management of the Group companies approved a restructuring and transformation plan
for the Group. The objective of the transformation program is to re-align the activities, operations and organisation of the Group to
make it compatible with the strategy adopted by the Group’s majority shareholder. The Group reorganised the structure of and
management tools used in the sales network, centralised and rationalised selected activities and changed the Group’s corporate
image (the Group specifically incurred costs in respect of the change of the logo and advisory and consultancy services related to the
transformation program). Rationalisation and centralisation of the Group’s activities involves reducing staffing levels at the Group and
has led to the Group incurring severance and compensation costs associated with the staff laid off under the restructuring measures.
The Group reviewed the location, appearance and positioning of its branch network and intends to dispose of buildings, owned and
leased, in the medium term that are not compatible with its plans for the branch network.