KB prezent. angl - Komerční banka

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Legal Information
Legal Disputes
Legal Disputes in which the Bank acts as a Plaintiff
In 2003, a total of 10 important court proceedings were conducted by Komerční banka, which were launched in 2003 and in the
previous years. The proceedings had or could have material implications for the Bank’s financial results. The total amount involved in
the court proceedings is CZK 1.3 billion.
Of these 10 court proceedings, seven are actions for payment and three are bankruptcy proceedings, and the total amount of court
disputes is CZK 0.6 billion, and for bankruptcies CZK 0.7 billion.
With respect to its overall financial situation, Komerční banka regards as material all disputes involving amounts exceeding CZK 10 million
and all bankruptcy proceedings for amounts exceeding CZK 50 million. The reason for the higher threshold for bankruptcy
proceedings is the fact that the average yield of bankruptcies in the practice of Komerční banka does not exceed 20 percent
– the outcomes of bankruptcy proceedings usually have less significant implications on the Bank’s figures than legal disputes over
similar amounts.
Legal Disputes in which the Bank acts as a Defendant
In 2003, the total amount of disputes in which the Bank acts as a defendant totalled CZK 21 billion; 21.4 percent of these disputes
can be considered a potential risk for the Bank.
Komerční banka, based on a detailed analysis of the risk inherent in court proceedings conducted against the Bank, created a reserve
of CZK 527 million as at 31 December 2003.
See also Notes to the Unconsolidated Financial Statements according to CAS, Note No. 28 – Contingencies and off balance sheet
commitments, paragraph: Legal disputes.
Additional Information
Licences and Trademarks
If using any third party rights which are governed by the relevant statutory provisions on the protection of intellectual property or
intangible industrial property rights, Komerční banka rigorously monitors the fulfilment of all statutory requirements. Any such rights
are used only in accordance with valid laws and international conventions, or under a relevant licence, as appropriate.
Komerční banka also owns (has registered) nearly sixty trademarks entered (registered) in the public register of trademarks
maintained by the Industrial Property Office of the Czech Republic, which pertain in particular to the Bank’s products. Komerční banka
has also registered (applied for registration of) trademarks in the Slovak Republic.
Expenses on research and development
In 2003, Komerční banka spent a total of CZK 17,851 thousand (2002: CZK 7,503 thousand) on research and development, primarily
including expenses on studies and projects such as studies of the centralisation and rationalisation of portfolio management.
Loan commitments
See Notes to the Unconsolidated Financial Statements according to CAS, Note No. 19 – Amounts owed to banks and Note No. 20 –
Amounts owed to customers.