KB prezent. angl - Komerční banka

068 ➔069
Unconsolidated Financial Statements
under CAS
Notes to the Unconsolidated Financial Statements
according to CAS as of 31 December 2003
1. Principal activities
Komerční banka, a. s. (henceforth the “Bank”) is incorporated in the Czech Republic as a joint stock company. The principal activities
of the Bank are as follows:
I. Providing loans, advances and guarantees in Czech Crowns and foreign currencies;
II. Acceptance and placement of deposits in Czech Crowns and foreign currencies;
III. Providing current and term deposit accounts in Czech Crowns and foreign currencies;
IV. Providing banking services through an extensive branch network in the Czech Republic;
V. Treasury operations in the interbank market;
VI. Servicing foreign trade transactions;
VII. Investment banking.
The registered office address of the Bank is Na Příkopě 33/969, 114 07 Praha 1. The Bank has operations in the Czech Republic and
Slovakia through its subsidiary Komerční banka Bratislava, a. s.
The Bank’s ordinary shares are publicly traded on the Prague Stock Exchange. Société Générale is the Bank’s majority shareholder,
holding 60.35 percent (2002: 60.35 percent) of the Bank’s issued share capital.
2. Events for the year ended 31 December 2003
Dividends declared in respect of the year ended 31 December 2002
At the General Meeting held on 19 June 2003, the shareholders approved a dividend for the year ended 31 December 2002 of CZK 40
per share before tax. The dividend was declared in the aggregate amount of CZK 1,520 million in respect of the total net profit of
CZK 9,229 million under Czech Accounting Standards for that year.
Sale of a portfolio of non-performing loans
The Bank entered into a framework agreement for the sale of a portfolio of non-performing loans with the GE Capital Group (“GE”) on
29 November 2002.
Pursuant to the framework agreement and a subsequent amendment thereto, non-performing loans with an aggregate nominal value
of CZK 15,545 million were assigned for consideration of CZK 2,655 million (including loan exposures and receivables fully written off
in prior years) during the first half of 2003.
The non-performing loans with a nominal value of CZK 15,545 million consist of the following amounts:
– Exposures covered by the State Guarantee CZK 4,217 million
– Other exposures CZK 4,915 million
– Loans written off in prior years CZK 6,413 million.
During the course of the assignment of the loans and settlement of the payment, insignificant departures from the original scope of
the transaction were made pursuant to the provisions of the agreement.
The Bank reflected the impact of the sale of the portfolio of non-performing loans in its financial statements for the year ended
31 December 2002 according to the economic substance of the transaction. The sold loans were retained within the Bank’s assets
and were remeasured on the basis of the selling prices negotiated with GE. In the first half of 2003, the sold loans were removed
from the Bank’s balance sheet on the date of their assignment to GE. The aggregate impact of the assignment of loans to GE on the
profit and loss statement during 2003 was immaterial.