KB prezent. angl - Komerční banka

More documents

Recommendations

Info

028 ➔029 Report of the Board of Directors Classification of receivables Right from the start of the year, the Bank fulfilled all the requirements laid down under the new CNB Provision No. 9/2002, on the classification of receivables. The Bank elaborated on its internal processes for the classification of accounts receivables from financial institutions and banks. The financial situation of clients is now assessed both on the basis of objective criteria (payment discipline, scoring, rating) and on the basis of a subjective evaluation of clients’ ability to fulfil their obligations towards the Bank. For most of the loan portfolio, an individual evaluation of the classification and provisions is used and processed within three levels of Provisions Committees. The classification of clients is reviewed on a quarterly basis.
Provisions and reserves With regard to the creation of provisions and reserves, the Bank has ensured the fulfilment of all the requirements laid down under CNB Provision No. 9/2002. The level of provisions has been influenced inter alia by a more stringent approach in cases where pledged property has not been insured, the individual level of provisions approved by the Provisions Committees, the release of provisions due to the sale of receivables to GE Capital Corporation, and the development of the portfolio covered by the State Guarantee. In terms of reserves, the Bank acted in accordance with legal requirements by continuing its release of tax deductible reserves created before the end of 2001; by law, the Bank must reduce this reserve by a minimum of 25% each year until 2005. The Bank has created new reserves only for un-drawn loans and selected off-balance sheet items that fulfil legal requirements. Risk receivable management and the State Guarantee for the coverage of losses from the Bank’s risk assets In 2003, the Bank continued its successful recovery of non-performing assets. The total volume of resolved receivables amounted to CZK 22.2 billion, of which CZK 15.5 billion was linked to the sale of risk receivables to GE Capital Corporation, an operation launched in 2002. Under the Guarantee Agreement between Komerční banka and Konsolidační banka, concluded at the end of 2000, further to a decision of the government of the Czech Republic of 18 December 2000, the force of the State Guarantee expired on 31 December 2003. The Guarantee covered net exposures (i.e. the nominal value less the specific provisions created) of non-performing assets classified as substandard, doubtful and loss as at 31 December 2000, reduced by the cash recovered up to 31 December 2003. The guarantee covers losses only up to an accumulated amount of CZK 20 billion. The original nominal volume of guaranteed assets, totalling CZK 61 billion, had decreased by 31 December 2003 to a balance of CZK 1.3 billion as a consequence of paid instalments, sales, write-offs and the exclusion of part of the assets from the State guarantee regime. This balance includes CZK 535 million in accounts receivable from bankrupt clients, for which the Czech Consolidation Agency (CKA) used its purchase option at the end of 2003. These receivables will be transferred in the first half of 2004. Based on the contractual terms and conditions, the guarantee will be settled by the end of June 2004. Komerční banka is managing the portfolio intended for transfer to CKA in accordance with the agreed regime. Under the contract, the Czech Consolidation Agency made a prepayment of CZK 5.862 billion to KB at the beginning of December 2003 as part of the settlement agreed under the State Guarantee. In accordance with the original plan to close down the Remedial Management unit after a set time, this department’s headcount was reduced by 54% during 2003. As the volume of the portfolio of risk receivables continues to shrink, the number of employees at this unit will decrease until the unit is dissolved when the transaction with CKA has been completed. In April 2003 the Distressed Loans department was established within the Risk Management unit with the goal of helping points of sale to find timely solutions to the loan exposure for clients where the Bank has identified warning signals indicating an increased risk. This new approach allows for the timely implementation of measures that will help alleviate the Bank’s risk while preserving the existing business co-operation. Foreign exposure Komerční banka’s operations are conducted mostly with domestic clients, although the Bank also reports substantial exposures from its business with foreign entities. They include loans to clients and financial institutions, and interest-bearing investments together with other on-balance sheet and off-balance sheet items; most exposure, however, is represented by transactions with international financial institutions on the inter-bank market. Foreign exposures are managed through a system of limits applied to different counterparties and countries. The Bank manages the economical and political risk through the regular monitoring of these limits.
Page 1 and 2: AR ➔ 03 Annual Report Komerční
Page 3 and 4: KB was named “The Trustworthiest
Page 5 and 6: 8 The total loan portfolio of the B
Page 7 and 8: Statutory Bodies and Organisation S
Page 9 and 10: Retail Banking Komerční banka’s
Page 11 and 12: Financial Highlights Unconsolidated
Page 13 and 14: Alexis Juan The product and service
Page 15 and 16: Major Events in 2003 Restructuring
Page 17 and 18: Information on Komerční banka Sha
Page 19 and 20: In 2003, both imports and exports a
Page 21 and 22: To achieve this target Komerční b
Page 23 and 24: The Distribution Network Komerční
Page 25 and 26: Retail Banking Individuals In the b
Page 27 and 28: Corporate Banking Medium Enterprise
Page 29: Risk Management Risk management at
Page 33 and 34: Methods for measuring market risk a
Page 35 and 36: Price setting ALM is in charge of e
Page 37 and 38: Information Technology and Operatio
Page 39 and 40: Corporate Citizenship - Company Act
Page 41 and 42: Net operating income Net operating
Page 43 and 44: LIABILITIES Amounts due to banks Am
Page 45 and 46: Restructuring process The restructu
Page 47 and 48: Investiční kapitálová společno
Page 49 and 50: Komerční banka Bratislava, a. s.
Page 51 and 52: Komerční pojišťovna, a. s. Shar
Page 53 and 54: Všeobecná stavební spořitelna K
Page 55 and 56: Statutory Bodies and Organisation S
Page 57 and 58: Directors Committee The Directors C
Page 59 and 60: Shareholders Shareholders Sharehold
Page 61 and 62: Auditors’ Report for Shareholders
Page 63 and 64: FInancial Statements Financial Stat
Page 65 and 66: Unconsolidated Profit and Loss Stat
Page 67 and 68: Liabilities CZK million Item no. Na
Page 69 and 70: Statement of Changes in Equity for
Page 71 and 72: State guarantee covering losses on
Page 73 and 74: (e) Securities Securities held by t
Page 75 and 76: The Bank has carried in its balance
Page 77 and 78: Certain derivative transactions, wh
Page 79 and 80: 8. Administrative expenses In addit
Page 81 and 82:
Reserves for off balance sheet expo
Page 83 and 84:
CZK million 2003 2002 2001 Profit/(
Page 85 and 86:
Set out below is an analysis by ter
Page 87 and 88:
Syndicated loans granted Non-bankin
Page 89 and 90:
Securities available for sale Secur
Page 91 and 92:
Investments held to maturity Invest
Page 93 and 94:
Company name and legal status Direc
Page 95 and 96:
17. Tangible and intangible fixed a
Page 97 and 98:
19. Amounts owed to banks CZK milli
Page 99 and 100:
23. Subordinated liabilities In 199
Page 101 and 102:
Loan collateral Collateral values a
Page 103 and 104:
(C) Financial derivatives The Bank
Page 105 and 106:
(D) Interest rate risk Interest rat
Page 107 and 108:
CZK million On demand Up to 3 month
Page 109 and 110:
Financial commitments and contingen
Page 111 and 112:
Principal balances owed to the Soci
Page 113 and 114:
Unconsolidated Financial Statements
Page 115 and 116:
Unconsolidated Statement of Changes
Page 117 and 118:
Consolidated Financial Statements u
Page 119 and 120:
Consolidated Balance Sheet as of 31
Page 121 and 122:
Consolidated Cash Flow Statement fo
Page 123 and 124:
In the year ended 31 December 2002,
Page 125 and 126:
(b) Basis of consolidation Subsidia
Page 127 and 128:
The Group assesses on a regular bas
Page 129 and 130:
(m) Sale and repurchase agreements
Page 131 and 132:
5. Net interest income Net interest
Page 133 and 134:
Social security costs include retir
Page 135 and 136:
The balance of reserves for other c
Page 137 and 138:
17. Cash and current balances with
Page 139 and 140:
Debt trading securities at fair val
Page 141 and 142:
Set out below is an analysis by ter
Page 143 and 144:
Debt securities available for sale
Page 145 and 146:
25. Investments in associates and u
Page 147 and 148:
28. Amounts due to customers Amount
Page 149 and 150:
Other provisions are composed of th
Page 151 and 152:
35. Commitments and contingent liab
Page 153 and 154:
Remaining maturity of remaining ins
Page 155 and 156:
2003 2002 Number of the Management
Page 157 and 158:
Loan collateral Collateral values a
Page 159 and 160:
(C) Financial derivatives The Group
Page 161 and 162:
(D) Interest rate risk Interest rat
Page 163 and 164:
CZK million On demand Up to 3 month
Page 165 and 166:
(G) Operational risk The Group does
Page 167 and 168:
Survey of Financial Results 1999 -
Page 169 and 170:
The Bank shall further carry on bus
Page 171 and 172:
Shares 38,009,852 listed ordinary b
Page 173 and 174:
Komerční banka Shares Type: ordin
Page 175 and 176:
Surrender of GDRs Upon surrender of
Page 177 and 178:
Investments Investments made by the
Page 179 and 180:
Report on Relations Among Related E
Page 181 and 182:
Investment banking arrangements In
Page 183:
Komerční banka, a. s. Na Příkop
show all

KB prezent. angl - Komerční banka

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?