Landeskreditbank Baden-Württemberg - L-Bank

Notes to the annual financial statements of
Landeskreditbank Baden-Württemberg – Förderbank –
for the financial year ended December 31, 2003
Individual material items
Depreciation and accumulated amortization on equity investments in nonaffiliated
companies, affiliated companies and securities treated as fixed assets
Dec. 31, 2003 Dec. 31, 2002
EUR ’000 EUR ’000
• Unscheduled depreciation ............................................. 17,705 4,720
Other operating expenses
• Expenses relating to grants and subsidies provided under development programs
managed on behalf of the state of Baden-Württemberg ....................... 18,407 18,407
Total value of assets and debts denominated in foreign currencies
• Assets ............................................................. 678,508 761,808
• Debts ............................................................. 4,612,033 3,455,007
The risk of exchange rate fluctuations arising from balance sheet items denominated
in foreign currencies is essentially covered by off-balance-sheet hedging transactions
Book value of assets sold for repurchase (true repo agreements pursuant to §
340b para. 4 HGB)
In the context of sell and buy-back transactions with other credit institutions ........ 0 78,646
Assets lodged as security for liabilities
For other liabilities
• interest rate futures transactions ........................................ 0 4,703
Other financial obligations
The total sum of other financial obligations existing at the balance sheet date which are not included in the
balance sheet or shown below the line is of minor significance to an evaluation of the Bank’s financial position.
Transactions involving derivatives
At the balance sheet date, the following transactions involving financial derivatives (forward transactions as
defined in § 36 RechKredV) formed part of L-Bank’s portfolio. The majority of the transactions were undertaken
in order to hedge interest rate and exchange rate fluctuations. The respective credit risk equivalents have been
calculated using the market valuation method based on the appropriate counterparty weighting with the
corresponding percentage add-on. The practice of netting – the offsetting of negative market values – was not
applied.
Replacement costs were calculated on the basis of market prices. All contracts with a positive market value have
been taken into account; they have not been set off against contracts with a negative market value by contracting
party. Taking all existing netting agreements into account, replacement costs have fallen by EUR 1,776 million,
from EUR 2,509 million to EUR 733 million.
F-37