Accounting ReportNotes on the Financial StatementsOther administration costsEUR 1,000 <strong>2007</strong> 2006Material 794 613Rent 1,706 1,531IT services 2,236 4,249Communication 356 253Electronic banking and payment systems 561 395Auditing and supervision 242 214Consulting 1,361 1,258Office-related expenses 338 350Other services 947 917Rebranding costs 1,606 -Advertising, marketing and sponsorships 1,535 1,161Entertainment 124 45Other 1,613 1,413Total 13,419 12,399Costs for Auditing and Supervision include the audit of the AnnualReport: 98 thousand euros from KPMG <strong>Slovenija</strong>, podjetje zarevidiranje, d.o.o. which does not conduct other services for theBank. Other costs included in Auditing and Supervision are costsfor Deloitte revizija d.o.o in the amount of 22 thousand euros, forindependent opinion for the Bank’s Internal audit department andcosts for tax audit, conducted by Ernst & Young d.o.o., in the amountof 5 thousand euros.Note 28:DepreciationEUR 1,000 <strong>2007</strong> 2006Tangible assets 1,615 1,591Leasehold inprovements 577 540Computer hardware 582 737Other equipment 456 314Intangible assets 1,550 1,328Computer software 1,550 1,328Total 3,165 2,919Note 29:ProvisionsEUR 1,000 <strong>2007</strong> 2006Pending legal cases 11 (1)Provisions for employee benefits 80 79Provisions for off balance sheet items (453) 565Provisions for money laundering 14 -Total (348) 643The Bank rents a number of branch and office premises. The renttypically runs for a definite or indefinite period, with an option torenew the rent after that date or to cancel it, when both parties agree,if the cancellation period is not specifically stated in the contract.The minimum future obligations for rental payments are as follows:Less than 1 year: For the year <strong>2007</strong>, the obligation amounts to 1,045thousand euros and 1,073 thousand euros for 2006. There are nofuture obligations for more than 1 year.176 <strong>2007</strong> Annual Report · <strong>UniCredit</strong> Bank
Note 30:ImpairmentImpairment of available-for-salefinancial assetsImpairment of financial assets,measured at costEUR 1,000 <strong>2007</strong> 200612 864,642 4,679Increase 11,462 17,275Loans 9,728 14,782Interests 1,006 1,871Fees 12 38Other assets 716 584Decrease (6,820) (12,596)Loans (5,913) (11,642)Interests (784) (668)Fees (15) (24)Other assets (108) (262)Total 4,654 4,765EUR 1,000 <strong>2007</strong> 2006Profit before taxes 19,712 14,753Tax rate 23.00% 4,534 25.00% 3,688Taxes for non-deductibleexpensesTax decrease fordeductible income1.16% 229 28.21% 4,161(0.65%) (128) (0.61%) (90)Other adjustments (0.53%) (104) (26.69%) (3,938)Total 22.98% 4,531 25.90% 3,821Net exposure for available-for-sale financial assets is presented innote 4, net exposure for financial assets, measured at costs, in note6, and exposure for fees and other assets, in note 11.Note 31:Tax expense (income) relatedto profit or loss from continuing operationswith explanation of effective tax rateEUR 1,000 <strong>2007</strong> 2006Current taxes 3,518 8,951Deferred taxes 1,013 (5,130)Total 4,531 3,821<strong>UniCredit</strong> Bank · <strong>2007</strong> Annual Report 177