Landeskreditbank Baden-Württemberg - L-Bank

Notes to the annual financial statements of
Landeskreditbank Baden-Württemberg – Förderbank –
for the financial year ended December 31, 2002
Individual material items
Depreciation and accumulated amortization on intangible assets and tangible
assets
Dec. 31, 2002 Dec. 31, 2001
EUR ’000 EUR ’000
Unscheduled • depreciation ......................................... 0 8,028
Other operating expenses
Expenses • relating to grants and subsidies provided under development
programs managed on behalf of the state of Baden-Württemberg .......... 18,407 3,068
Total value of assets and debts denominated in foreign currencies
Assets • ......................................................... 761,808 762,891
Debts • ......................................................... 3,455,007 1,587,830
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)
Open-market • transactions with Federal Central Bank ................... 0 98,090
In the context of sell and buy-back transactions with other credit
institutions • ..................................................... 78,646 0
Assets lodged as security for liabilities
For liabilities to credit institutions
open-market • transactions with Federal Central Bank .................... 0 98,090
For other liabilities
interest • rate futures transactions .................................... 4,703 4,969
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.
Transaction 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
1,490 million, from EUR 2,326 million to EUR 836 million.
F-60