Annual report 2004 (PDF, 4141 kB) - Unicredit Bank

The table below summarises the effective interest rate by major currencies for monetary
financial instruments:
As at 31 December 2004
CZK
%
USD
%
GBP
%
EUR
%
Assets
Cash and balances with central bank 1,95 0 0 0
State treasury and other bills eligible for CNB refinancing 2,83 0 0 0
Due from other banks 2,50 2,25 4,25 2,57
Trading securities – debt securities 4,78 2,69 5,03 2,36
Loans and advances to customers 4,33 4,97 5,58 4,08
Securities available-for-sale – debt securities 0 7,33 0 4,63
Liabilities
Due to other banks 2,69 2,30 0 2,26
Due to customers 1,26 0,89 2,97 0,70
Debt securities in issue 2,89 1,84 4,34 1,21
Assuming the financial assets and liabilities at 31 December 2004 were to remain until
maturity or settlement without any action by the Group to alter the resulting interest rate risk
exposure, an immediate and sustained increase of 1% in market interest rates across all
maturities would reduce net income and the Group’s equity for the following year
by approximately CZK 27 million (31 December 2003: CZK 13 million).
The calculation is made on the assumption that the change will take place simultaneously on
both assets and liabilities sides, which would not be the case in reality. The Group would
make re-pricing decisions with a certain delay after the change of market conditions, thus
limiting the effect on the overall net income and the Group’s equity.
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