Annual Report - VÚB banka

37. Related parties
Related parties are those counterparties that represent:
(a) enterprises that directly, or indirectly, through
one or more intermediaries, control, or are controlled
by, or are under the common control of,
the reporting enterprise;
(b) associates - enterprises in which the parent
company has signifi cant infl uence and which
are neither a subsidiary nor a joint venture;
(c) individuals owning, directly or indirectly, an interest
in the voting power of the Bank that gives
them signifi cant infl uence over the Bank, and
anyone expected to infl uence, or be infl uenced
by, that person in their dealings with the Bank;
(d) key management personnel, that is, those persons
having authority and responsibility for planning, directing
and controlling the activities of the Bank,
including directors and officers of the Bank and
close members of the families of such individuals;
and
(e) enterprises in which a substantial interest in the
voting power is owned, directly or indirectly, by
any person described in (c) or (d) or over which
such a person is able to exercise signifi cant infl
uence. This includes enterprises owned by directors
or major shareholders of the Bank and
enterprises that have a member of key management
in common with the Bank.
In considering each possible related party relationship,
attention is directed to the substance of the relationship,
and not merely the legal form. The majority
of the stated transactions have been made under
arms-length commercial and banking conditions.
At 31 December 2007 and 2006, signifi cant outstanding balances with related parties comprised:
2007 2006
Loans and advances
Key management personnel 6 6
Affi liated companies 1,895 3,243
Shareholder and companies controlled by shareholder 1,711 7,167
3,612 10,416
Customer accounts
Key management personnel 38 26
Affi liated companies 4,430 2,963
Shareholder and companies controlled by shareholder 4,303 3,326
8,771 6,315
Derivative transactions (notional amount)
Affi liated companies 2,248 825
Shareholder and companies controlled by shareholder 12,017 2,746
14,265 3,571
Securities
Shareholder and companies controlled by shareholder 2,654 2,599
113
38. Profit distribution
On 4 April 2007, the Bank’s shareholders approved the following profi t distribution for 2006:
Dividends to shareholders (Sk 217 per share) 2,816
Retained earnings 942
3,758
The Board of Directors will propose the following 2007 profi t distribution:
Dividends to shareholders (Sk 135 per share) 1,752
Retained earnings 1,748
3,500
39. Events after the balance sheet date
There were no signifi cant events after the balance sheet date that would require adjustment or disclosure in
the fi nancial statements at 31 December 2007.
VUB, a bank of Intesa Sanpaolo group