KB prezent. angl - Komerční banka

Reserves for off balance sheet exposures
Risk
CZK million
Balance
Reserve for off balance sheet commitments 1,024
Reserve for undrawn loan facilities 189
Total 1,213
As of 31 December 2003, the balance of the reserves for off balance sheet exposures and guarantees was CZK 1,213 million. This
provision covers credit risks associated with issued credit commitments.
Gains/(losses) arising from transferred and written off receivables
CZK million 2003 2002 2001
Income Expenses Income Expenses Income Expenses
Income/(expense) from loan receivables from banks written off 0 0 1 (1) 0 0
Income/(expense) from loan receivables from customers written off 153 (840) 1,023 (1,289) 2,252 (153)
Income/(expense) from other receivables written off 0 0 0 0 0 (129)
Income/(expense) from transferred receivables 558 (8,233) 41 (4,047) 6 (1,707)
Total 711 (9,073) 1,065 (5,337) 2,258 (1,989)
Reserves and provisions for tangible and intangible assets
The Bank reviewed the location, appearance and positioning of its branch network and future utilisation of intangible fixed assets in
the context of its strategic plans in the medium term. As of 31 December 2001, this review identified a number of buildings, owned
and leased, whose location and appearance is not compatible with such plans. The Bank’s intention is to dispose of these premises
and vacate the leases in the medium term. During 2003, the Bank undertook a review of a set of owned buildings held for sale and
leased buildings which served as a basis for adjusting the level of provisions charged against these buildings to reflect their estimated
recoverable values. From this review, the Bank maintains impairment provisions of CZK 614 million as of 31 December 2003 (2002:
CZK 798 million) which includes expected losses on the sale of premises presently owned by the Bank, and the writedown of
leasehold improvements on leased premises which the Bank intends to sell or terminate the rental agreements. The aggregate
balance of provisions against assets is CZK 709 million (2002: CZK 1,038 million).
In addition, the Bank identified a set of intangible fixed assets which it intends to take out of service or replace. The impairment
charge resulting from this review amounts to CZK 54 million as of 31 December 2003 (2002: CZK 121 million).
Reserves and provisions for equity investments
Provisions for equity investments principally comprise provisions charged in respect of Komerční pojišťovna, a. s. on the basis of changes
in its equity balance.
In the year ended 31 December 2002, Komerční pojišťovna, a. s. incurred losses specifically in connection with restructuring costs,
industrial insurance claims resulting from the floods that affected the Czech Republic in August 2002, and increased charges for life
insurance technical reserves within the context of the continued decrease in market interest rates in the Czech Republic during 2002.
In the year ended 31 December 2003, Komerční pojišťovna, a. s. incurred additional losses in respect of the restructuring process and
reported a decrease in equity arising from the revaluation of investments in securities. Further information is presented in Notes
2 and 16 to these financial statements.