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

to be completely matched since business transacted is often of uncertain term and of different
types. An unmatched position potentially enhances profitability, but can also increase the risk
of losses.
The maturities of assets and liabilities and the ability to replace, at an acceptable cost, interestbearing
liabilities as they mature, are important factors in assessing the liquidity of the Group
and its exposure to changes in interest rates and exchange rates.
Liquidity requirements to support calls under guarantees and standby letters of credit are
considerably less than the amount of the commitment because the Group does not generally
expect the third party to draw funds under the agreement. The total outstanding contractual
amount of commitments to extend credit does not necessarily represent future cash
requirements, since many of these commitments will expire or terminate without being
funded.
(h)
Fair values of financial assets and liabilities
The following table summarises the carrying amounts and estimated fair values of those
financial assets and liabilities not presented on the Group’s balance sheet at their fair value.
Carrying value Fair value
31 December
2004
31 December
2003
31 December
2004
31 December
2003
CZK m CZK m CZK m CZK m
Financial assets
Due from other banks 12 428 17 368 12 428 17 368
Loans and advances
to customers 24 269 22 448 24 269 22 448
36 697 39 816 36 697 39 816
Financial liabilities
Due to other banks 5 389 4 766 5 389 4 766
Due to customers 33 228 34 678 33 228 34 678
Debt securities in issue 2 654 3 413 2 632 3 413
Due from other banks
41 271 42 857 41 249 42 857
Due from other banks includes short-term inter-bank placements and items in the course
of collection at approximately their fair values. It also includes loans and advances to other
banks, the majority of which reprice within relatively short time spans; therefore it is assumed
their carrying values approximate their fair values.
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