KB prezent. angl - Komerční banka

Net operating income
Net operating income of CZK 10,161 million increased by 3.3% compared to 2002. The main drivers of this development
were the successful business performance and efficient cost control within the Bank.
Provisions for loan and investment losses
The net release of provisions for loan and investment losses amounted to CZK 3,122 million.
The net release of provisions and reserves for loan losses of CZK 2,332 million is connected with the release of general
provisions amounting to CZK 2,830 million and low level of cost of risk, which came to 37 bps in 2003.
Provisions and net profit from the sale of subsidiaries and associates were influenced significantly by the sale of Reflexim,
a subsidiary company, and CAC Leasing, an associated company. Therefore, a positive result of CZK 716 million was reported
for the year.
The net release of provisions and reserves comprised also net creation of provisions for losses from Collateralised Debt
Obligations amounting to CZK 74 million and income from fully written-off loans of CZK 149 million.
Tax charge
The total income tax amounted to CZK 4,021 million, representing an increase by 60.3%. The total tax charge in 2002 was
influenced significantly by the first posting of deferred tax receivable of CZK 902 million.
The effective tax rate was 30.3%.
Balance Sheet
Total assets amounted to CZK 447.6 billion as at 31 December 2003 representing a year-on-year increase by 1.8%.
ASSETS
Cash and current balances with the banks
The balance of cash and current balances with banks fell by 14.2% to CZK 12.3 billion compared to the end of 2002. This amount
corresponds to the trend in balances with the Czech National Bank, i.e. the balance of the obligatory minimum reserves bearing
interest equal to the CNB two week repurchase rate. This rate fell during the year 2003 from 2.75% to 2.00%.
Amounts due from banks
Amounts due from banks stayed stable and amounted to CZK 201.6 billion as at the end of 2003. The advances due to the
Czech National Bank, i.e. repo transactions, increased year on year by 15.3% to CZK 166.4 billion as at 31 December 2003.
Amounts due from banks also include bonds issued by the parent company not designated for trading. During the year the
Bank bought an additional CZK 5 billion of bonds issued by Société Générale bearing fixed interest at 3.98% and maturing in
2013. The total balance of these bonds acquired under initial offerings stood at CZK 19.1 billion at the end of 2003.
Trading securities
The portfolio of trading securities stayed stable and reached CZK 25.7 billion. From the total amount 87.5% comprise treasury
bills issued by Czech Ministry of Finance and Czech Consolidation Agency.