Letno poročilo 2009.pdf - UniCredit Banka Slovenija dd

All trading positions are marked to market, with the result reflected in earnings. In 2009, negative trading-related revenue (net losses) wasrecorded for 72 of 205 observed trading days. Of the 72 days on which negative revenue (net losses) was recorded, 6 were greater than500,000 EUR. The following histogram of the total daily revenue or loss captures trading volatility and shows the number of days in which theBank’s trading-related revenues fell within particular ranges.Histogram of Daily Trading-Related Revenue - Twelve Months Ended 31 December 2009-1400 -1400 EUR to EUR -1350 to -1350 EUR EUR-1300 -1300 EUR to EUR -1250 to -1250 EUR EUR-1200 -1200 EUR to EUR -1150 to -1150 EUR EUR-1100 -1100 EUR to EUR -1050 to -1050 EUR EUR-1000 -1000 EUR to EUR -950 to EUR -950 EUR-900 EUR -900 to EUR -850 to EUR -850 EUR-800 EUR -800 to EUR -750 to EUR -750 EURNumber Number of Trading of Trading Days Days-700 EUR -700 to EUR -650 to EUR -650 EUR-600 EUR -600 to EUR -550 to EUR -550 EUR-500 EUR -500 to EUR -450 to EUR -450 EUR-400 EUR -400 to EUR -350 to EUR -350 EUR-300 EUR -300 to EUR -250 to EUR -250 EUR-200 EUR -200 to EUR -150 to EUR -150 EUR-100 EUR -100 to EUR -50 to EUR -50 EUR0 EUR 0 to EUR 50 to EUR 50 EUR100 EUR 100 to EUR 150 to EUR 150 EUR200 EUR 200 to EUR 250 to EUR 250 EURTotal Revenues in Thousands of Euros300 EUR 300 to EUR 350 to EUR 350 EUR400 EUR 400 to EUR 450 to EUR 450 EUR500 EUR 500 to EUR 550 to EUR 550 EUR600 EUR 600 to EUR 650 to EUR 650 EUR700 EUR 700 to EUR 750 to EUR 750 EUR800 EUR 800 to EUR 850 to EUR 850 EUR900 EUR 900 to EUR 950 to EUR 950 EUR1000 1000 EUR to EUR 1050 to 1050 EUR EUR1100 1100 EUR to EUR 1150 to 1150 EUR EUR1200 1200 EUR to EUR 1250 to 1250 EUR EUR1300 1300 EUR to EUR 1350 to 1350 EUR EURTotal Revenues in Thousands of EurosFinancial DerivativesFollowing international recommendations, the Bank classifies its derivatives transactions into interest rate contracts, foreign exchangecontracts, securities related transactions and credit and other derivatives based on the underlying financial instrument.In all the categories, a distinction is made between over-the-counter (OTC) and exchange traded products. While most of the derivativesportfolio is composed of OTC derivatives, the 2009 end of year balance sheet for the first time shows positions in bond futures as anexchange traded product. During the year the Bank actively used this instrument for interest rate position management purposes. This isevident from the below tables showing a breakdown of all derivatives transactions by the remaining time to maturity.UniCredit Banka Slovenija d.d. is a business partner in plain-vanilla and structured transactions for corporate customers and promptly closesrisk positions which could lead to an excess of the available market risk limits.UniCredit Banka Slovenija d.d. also uses derivatives to optimize its balance sheet structure. The Bank completed the process of credit default swapimplementation in 2009, thereby gaining access to an effective protection against potential negative developments in credit spread markets.For portfolio management and risk management purposes, contracts are valued at current prices using recognized and tested models. Marketvalues show the contract values as at the balance sheet date where positive market values of OTC contracts indicate the current default riskarising from the relevant activity.UniCredit Bank · 2009 Annual Report 217