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

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16 DERIVATIVE FINANCIAL INSTRUMENTS AND TRADING LIABILITIES The Group utilises the following derivative instruments for both hedging and non-hedging purposes: Currency forwards represent commitments to purchase foreign and domestic currency, including undelivered spot transactions. Forward rate agreements are individually negotiated interest rate futures that call for a cash settlement at a future date for the difference between a contracted rate of interest and the current market rate, based on a notional principal amount. Currency and interest rate swaps are commitments to exchange one set of cash flows for another. Swaps result in an economic exchange of currencies or interest rates. Except for certain currency swaps, no exchange of principal takes place. The Group’s credit risk represents the potential cost to replace the swap contracts if counterparties fail to perform their obligation. This risk is monitored on an ongoing basis with reference to the current fair value, a proportion of the notional amount of the contracts and the liquidity of the market. The notional amounts of certain types of financial instruments provide a basis for comparison with instruments but do not necessarily indicate the amounts of future cash flows involved or the current fair value of the instruments and, therefore, do not indicate the Group’s exposure to credit risks. The derivative instruments become favourable (assets) or unfavourable (liabilities) as a result of fluctuations in market interest rates or foreign exchange rates relative to their terms. The aggregate contractual or notional amount of derivative financial instruments on hand, the extent to which instruments are favourable or unfavourable and, thus the aggregate fair values of derivative financial assets and liabilities can fluctuate significantly from time to time. The nominal and fair values of derivative instruments held are set out in the following table. 84
31 December <strong>2004</strong> 31 December 2003 Nominal value Fair value Positive Fair value negative Nominal value Fair value positive Fair value negative CZK m CZK m CZK m CZK m CZK m CZK m Derivatives designated as fair value hedges Interest rate swaps 821 0 43 749 0 51 Derivatives held for trading Interest rate derivatives Forwards 5 261 4 2 6 853 6 10 Swaps 3 743 15 51 3 381 20 84 9 004 19 53 10 234 26 94 Foreign exchange derivatives Forwards 1 805 27 41 1 387 56 2 Swaps 4 722 163 69 4 836 29 54 6 527 190 110 6 223 85 56 Equity derivatives Option purchased 591 51 0 0 0 0 Option sold 591 0 50 0 0 0 1 182 51 50 0 0 0 Other trading liabilities Treasury bills sold not yet purchased 0 0 0 -751 Total derivatives and other trading liabilities Interest rate 9 825 19 96 10 983 26 145 Foreign exchange 6 527 190 110 6 223 85 56 Equity 1 182 51 50 0 0 0 Other trading liabilities 0 0 0 0 0 751 17 534 260 256 17 206 111 952 The Group undertakes approximately 70% of its transactions in foreign exchange and interest rate contracts with other financial institutions (2003: 58%). Management has established stop loss and maturity limits. 85
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Annual Report of Živnostenská ban
Page 3 and 4:
Composition of the Supervisory Boar
Page 5 and 6:
Introduction by the Chairman of the
Page 7 and 8:
Directors’ Report Dear Clients an
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During 2004, the Bank opened 14 new
Page 11:
provided support to a number of pro
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Liabilities: Note 31 December 2004
Page 16 and 17:
Income Statement for the Year Ended
Page 18 and 19:
Schedule to the Financial Statement
Page 20 and 21:
• on sale or transfer of any secu
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(o) Receivables Receivables are sta
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The Bank creates social fund. The s
Page 26 and 27:
In 2004 and 2003, the Bank did not
Page 28 and 29:
for comparable transactions with ot
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Securities available-for-sale at 31
Page 32 and 33:
(c) Movements in investments in sub
Page 34 and 35: Tangible fixed assets 31 December 2
Page 36 and 37: 10 ALLOWANCES, PROVISIONS AND WRITE
Page 38 and 39: 11 DUE TO BANKS 31 December 2004 CZ
Page 40 and 41: 13 LIABILITIES FROM DEBT SECURITIES
Page 42 and 43: If the balance of the statutory res
Page 44 and 45: 31 December 2004 31.December 2003 C
Page 46 and 47: 20 COMMISSION AND FEE INCOME AND EX
Page 48 and 49: 23 ADMINISTRATIVE EXPENSES 31 Decem
Page 50 and 51: 24 TAXATION 31 December 2004 CZK m
Page 52 and 53: 26 FINANCIAL RISKS (a) Strategy in
Page 54 and 55: on a daily basis (so-called “back
Page 56 and 57: As at 31 December 2004 Assets CZK E
Page 58 and 59: The VaR amount for interest rate ri
Page 60 and 61: (g) Liquidity risk The Bank is expo
Page 62 and 63: At 31 December 2003 Assets Within 3
Page 65 and 66: Consolidated Financial Statement au
Page 67 and 68: Consolidated Income Statements of C
Page 69 and 70: Schedule to the Consolidated Financ
Page 71 and 72: (c) Foreign currencies The consolid
Page 73 and 74: (h) Sale and repurchase agreements
Page 75 and 76: Property, plant and equipment and i
Page 77 and 78: 3 NET FEE AND COMMISSION INCOME 31
Page 79 and 80: 7 OPERATING EXPENSES Operating expe
Page 81 and 82: The tax on the operating profit dif
Page 83: 13 STATE TREASURY AND OTHER BILLS E
Page 87 and 88: 18 SECURITIES AVAILABLE-FOR-SALE 31
Page 89 and 90: Property, plant and equipment Dispo
Page 91 and 92: y 29 December 2014, with no repayme
Page 93 and 94: The following table indicates the c
Page 95 and 96: (b) Capital adequacy To monitor the
Page 97 and 98: Geographical concentrations of asse
Page 99 and 100: market movements. The Board of Dire
Page 101 and 102: CZK USD GBP EUR Other Total As at 3
Page 103 and 104: As at 31 December 2004 Up to 1-3 3-
Page 105 and 106: The table below summarises the effe
Page 107 and 108: Maturities of assets and liabilitie
Page 109 and 110: to be completely matched since busi
Page 111 and 112: 34 RELATED PARTY TRANSACTIONS Parti
Page 113 and 114: Non-Audited Supplemental Informatio
Page 115 and 116: NON-AUDITED RECONCILIATION OF THE I
Page 117 and 118: Report on Relations between the Con
Page 119 and 120: 1.4. In addition to the above menti
Page 121 and 122: Supplementary Data in Conformity wi
Page 123 and 124: 1.3. The Board of Directors as at 3
Page 125 and 126: - supplementary investment services
Page 127 and 128: was launched aimed to introduce the
Page 129 and 130: Other Top Managers of Živnostensk
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Annual report 2004 (PDF, 4141 kB) - Unicredit Bank

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