KB prezent. angl - Komerční banka

132 ➔133
Consolidated Financial Statements
under IFRS
Restructuring costs comprise:
CZK million 2003 2002
Severance compensation costs 218 96
Other restructuring charges 456 989
Total restructuring costs 674 1,085
As of 31 December 2003, the Group maintained restructuring reserves of CZK 192 million (2002: CZK 321 million) which cover
restructuring costs relating to the restructuring plan approved in 2002 that will be incurred in the following reporting periods.
12. Profit/(loss) attributable to exclusion of companies from consolidation
The Group has excluded Reflexim, a. s. from the consolidated results for the year ended 31 December 2003 because the company
was sold. The company was excluded from consolidation at the value of its equity at the date of the sale. The gain arising from
exclusion of this company from consolidation amounted to CZK 12 million.
The associates, CAC LEASING, a. s. and CAC LEASING Slovakia, a. s., were also excluded from consolidation due to their sale.
The companies were excluded from consolidation at the value of their equity at the date of exclusion.
Income from share of associated undertakings, including the gain on their sale, totals CZK 433 million.
13. Provisions for loan and investment losses
Provisions for loans and other credit commitments
The movement in the provisions was as follows:
CZK million 2003 2002
Balance at 1 January (20,347) (25,756)
Net release/(creation) of provisions for loan losses 2,477 2,522
Impact of loans written off and transferred 6,804 2,300
Exchange rate differences attributable to provisions 305 587
Balance at period end (10,761) (20,347)
During the year ended 31 December 2003, the aggregate balance of provisions decreased by CZK 9,586 million compared to the
balance at the end of 2002 (the year-on-year decrease in 2002 was CZK 5,409 million) principally as a result of the sale of
non-performing loans (refer to Note 2).
The balance of provisions as of 31 December 2003 and 2002 comprises:
CZK million 2003 2002
Specific provisions for loans to customers (5,464) (10,718)
General provision for loans to customers (4,050) (6,609)
Reserve for other credit risks (17) (692)
Provisions for loans to financial institutions (15) (11)
Provisions for guarantees and other credit related commitments (1,215) (2,317)
Total (10,761) (20,347)