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

- supplementary investment services under Section 8(3)(d) of the Securities Act, advisory
activities regarding capital structure, industrial strategy and related matters, as well as
the provision of advice and services regarding mergers and acquisitions of businesses,
- supplementary investment services under Section 8(3)(e) of the Securities Act, services
relating to the subscription of securities pursuant to Section 8(2)(e) of the Securities
Act, that being in respect of the investment instruments under Section 8a(1)(a) through
(g) of the Securities Act,
- supplementary investment services under Section 8(3)(f) of the Securities Act, advisory
activities regarding investments into investment instruments, that being in respect of the
investment instruments under Section 8a(1)(a) through (g) of the Securities Act,
- supplementary investment services under Secrion 8(3)(g) of the Securities Act,
execution of foreign exchange transactions related to the provision of investment
services,
i) issuance of mortgage bonds,
j) financial brokerage,
k) acting as a depositary,
l) currency exchange services (purchases of foreign exchange),
m) provision of banking information,
n) trading for own account or for account of clients in foreign exchange and gold,
o) lease of safe deposit boxes,
p) activities directly associated with the activities specified in the banking license of the bank.
Information about judicial proceedings
Živnostenská banka, a.s. is party to several legal disputes. As at 31 December 2004, the Bank
had created a provision of CZK 21 million (31 December 2003: CZK 50 million) based on an
estimate by the Bank as to the outcome of these legal disputes. The Bank’s management
expects that the judicial proceedings for which the provisions has been created will be
completed within twelve months of the balance sheet date. Given this estimated period, the
provision has not been discounted.
Živnostenská banka, a.s. is also party to several active legal disputes where the outcome is
uncertain. Even if the Bank wins these disputes, in the overwhelming majority of cases the
recoverability of the court-awarded amounts is by no means guaranteed. Therefore, as a
precaution the Bank does not record potential yields from these disputes in its accounts.
Information about main investments
In 2004, Živnostenská banka, a.s., invested CZK 73 million into intangible assets and CZK
280 million into tangible assets.
Future investments into tangible assets will be related in particular to the planned expansion
of the Bank’s branch network. Živnostenská banka, a.s. anticipates no significant changes in
the current trend associated with investments into intangible assets.
125