Letno poročilo 2007 - UniCredit Banka Slovenija dd

Business ReportFinancial ResultsStaff expenses increased in 2007 by 2.30million euros to 15.42 million. The increasein number of employees accounts for themajority of this increase. By the end of2007, the Bank employed 450 full-timeemployees (FTE) (2006: 417 FTE) whilein 2007, on average, 434 FTE (2006, onaverage: 405 FTE) worked for the Bank. Forthe first time in 2007, the Bank recognisedexpense of unused holidays, which amountsto 0.45 million euros.Other administrative costs increased in2007 by 1.02 million euros to 13.42 millioneuros. On the one hand, marketing costsincreased by 1.68 million euros to 2.89P & L expensemillion euros, due to the re-branding of theBank, while communication costs remainedat the same level - 1.28 million euros. Onthe other hand, IT related costs decreased by1.59 million euros to 2.18 million euros, asthe euro introduction costs in 2006 were aone-off cost.Depreciation increased from 2.92 millioneuros in 2006 to 3.16 million euros in 2007.The Bank tries to reduce the impairmentlosses on financial assets by state-of-the-artrisk management techniques and a focus onclients with high credit worthiness. In 2007,the impairment of assets including provisionsamounts to 4.31 million euros (2006: 5.41million euros) which is a decrease of 1.10million euros or 20.4 %.In 2007, the Bank achieved a pre-tax profitof 19.71 million euros, compared to 14.75million euros in 2006, which is an increaseof 33.6 %.Within the tax expenses of 4.53 millioneuros (2006: 3.82 million euros), the Bankrecords current taxes of 3.52 million euros(2006: 8.95 million euros) and a deferredtax of 1.01 million euros (2006: profit of5.13 million euros).The net profit for the financial year amountsto 15.18 million euros after 10.93 millioneuros in 2006, which is an increase of 39 %.10016% 12%The Balance Sheetfor 20078060402009%9%37%36%42%39%Share 2006 Share 2007PROVISIONSDEPRECIATIONOTHER ADMIN. EXPENSESTAFF EXPENSEUniCredit Banka Slovenija d.d. has beenamong the fastest growing banks in recentyears and has more than doubled totalassets since 2003. However, the drasticreduction in the corporate customer marginson the asset side, which are often alreadybelow the Bank’s internal minimum marginlevels, as well as the implementation ofvalue-based management, lead to a focuson profitable rather than unlimited growthin the customer business. In addition,with the euro introduction, the Bank ofSlovenia stopped the issuance of depositoryreceipts in which UniCredit Banka Slovenijad.d. strongly invested in the past (yearend 2006: 187.78 million euros) withthe intention to achieve arbitrage profits.Lacking an investment alternative with thesame risk profile, the Bank reduced itsdeposits due to banks after the maturityof the depository receipts. Also, the loans122 2007 Annual Report · UniCredit Bank