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

28 RESERVES AND RETAINED PROFIT
If the balance of the statutory reserve fund has not reached 20% of the share capital,
the Group is required under the Commercial Code to allocate 5% of annual statutory profit to
this non-distributable fund.
Other reserves are allocated from retained profit as supplementary funds above the statutory
reserve fund legal requirement of 20% of share capital. Utilisation of these reserves is not
subject to ratification by the Annual General Meeting. These reserves can be used based on
Board of Directors proposal approved by Supervisory Board.
29 DIVIDENDS PER SHARE
No dividends were paid in 2004 and 2003.
30 EMPLOYEE BENEFITS
The Bank contributes to a pension fund (Allianz penzijní fond, a.s.) on behalf of its
employees. Contributions are made based on a defined pension insurance plan and within the
framework of this plan the Bank makes fixed pension insurance contributions on behalf of its
employees. In addition, within this contributory pension insurance plan the Bank may pay its
employees a certain percentage of the annual net profit proportionatelly to their annual
income.
31 CONTINGENT LIABILITIES AND COMMITMENTS
Legal proceeding. The Group is subject to several legal disputes (Note 27) related to its
business activities.
Capital commitments. At 31 December 2004, the Group had contractual commitments
for capital expenditure of CZK 30 million (31 December 2003: CZK 32 million).
Credit related commitments. The primary purpose of these instruments is to ensure that
funds are available to a customer as required. Guarantees, which represent irrevocable
assurances that the Group will make payments in the event that a customer cannot meet its
obligations to third parties, carry the same credit risk as loans. Documentary letters of credit,
which are written undertakings by the Group on behalf of a customer authorising a third party
to draw drafts on the Group up to a stipulated amount under specific terms and conditions, are
collateralised by the underlying shipments of goods to which they relate.
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