Annual Report - VÃB banka

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Notes to the separate financial statements for the year ended 31 December 2007 prepared in accordance with International Financial Reporting Standards 1. General information Všeobecná úverová banka, a.s. (‘the Bank’ or ‘VUB’) provides retail and commercial banking services. The Bank is domiciled in the Slovak Republic with its registered offi ce at Mlynské Nivy 1, 829 90 Bratislava 25 and has the identifi cation number (IČO) 313 20 155. At 31 December 2007, the Bank had a network of 160 branches and 65 sub-branches located throughout Slovakia (December 2006: 165 branches and 70 sub-branches). The Bank also has one branch in the Czech Republic. The Bank’s ultimate parent company is Intesa Sanpaolo S.p.A., which is a joint-stock company and is incorporated and domiciled in Italy. The address of its registered offi ce is Piazza San Carlo 156, 10121 Torino, Italy. Members of the Board of Directors are: Ignacio Jaquotot (Chairman), Domenico Cristarella, Ivan Golian, Jozef Kausich, Jonathan Charles Locke, Elena Kohútiková, Vladimíra Josefi ová, Dinko Lucić. Members of the Supervisory Board are: György Surányi (Chairman), Giovanni Boccolini (Vice Chairman), Ezio Salvai (Vice Chairman), Adriano Arietti, Paolo Grandi, Pavel Kárász, Ján Mikušinec, Massimo Pierdicchi, Milan Sedláček, Paolo Sarcinelli. 2. Summary of significant accounting policies 2.1 Basis of preparation The separate fi nancial statements of the Bank (‘the fi nancial statements’) have been prepared in accordance with International Financial Reporting Standards (‘IFRS’) issued by the International Accounting Standards Board (‘IASB’) and with interpretations issued by the International Financial Reporting Interpretations Committee of the IASB (‘IFRIC’) as approved by the Commission of European Union in accordance with the Regulation of European Parliament and Council of European Union and in accordance with the Act No. 431/2002 Collection on Accounting. The consolidated fi nancial statements of the Bank were issued on 6 March 2008 and are available at the legal offi ce of the Bank. The Bank decided to apply IFRS 8 Operating Segments for the accounting period beginning on 1 January 2007 as permitted by the Standard. The fi nancial statements have been prepared under the historical cost convention, as modifi ed by the revaluation of available-for-sale fi nancial assets, fi nancial assets held for trading and all derivative fi nancial instruments to fair value. The fi nancial statements are presented in millions of Slovak crowns (‘Sk’), unless indicated otherwise. Negative values are presented in brackets. 71 VUB, a bank of Intesa Sanpaolo group
2. Summary of significant accounting policies (continued) The principal accounting policies applied in the preparation of these fi nancial statements are set out below. The accounting policies adopted are consistent with those of the previous fi nancial year. Reclassifications Certain balances in the consolidated income statement from 2006 were reclassifi ed in accordance with their presentation in 2007 to better refl ect the substance of the income and expense. All reclassifi cations are related to the redesigned contracts for the insurance of banking products that is being collected from clients and subsequently paid to the insurance company. Originally, the Bank reported balances collected from clients and balances paid to the insurance company in gross values. After the reclassifi cation, only net margin is presented in the income statement. 2006 2006 Restated Change Fee and commission income 3,103 3,158 55 Fee and commission expense (1,185) (1,220) (35) Other operating income 286 156 (130) Other operating expenses (2,371) (2,261) 110 72 2.3 Segment reporting The Bank reports fi nancial and descriptive information about its operating segments in these fi nancial statements. An operating segment is a component of the Bank that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Bank), whose operating results are regularly reviewed by the Bank’s management to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete fi nancial information is available. The Bank operates in three operating segments – Retail banking, Corporate banking and Central treasury. Every segment is exposed to different risks and differs in the nature of its services, business processes and types of customers for its products and services. For all segments the Bank reports a measure of segment assets and liabilities and income and expense items, a reconciliation of total reportable segment revenues, total profi t or loss, total assets, liabilities and other amounts disclosed for reportable segments to corresponding amounts in the Bank’s fi nancial statements. Most of the transactions of the Bank are related to the Slovak market. Because of the market size, the Bank operates as a single geographical segment unit. 2.4 Foreign currency transactions Monetary assets and liabilities in foreign currencies are translated to Sk at the offi cial National Bank of Slovakia (’NBS’) exchange rates prevailing at the balance sheet date. Income and expenses denominated in foreign currencies are reported at the NBS exchange rates prevailing at the date of the transaction. The difference between the contractual exchange rate of a transaction and the NBS exchange rate prevailing on the date of the transaction is included in ‘Net trading income’, as well as gains and losses arising from movements in exchange rates after the date of the transaction. Annual Report 2007
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Contents Address by the Chairman of
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a socially useful construction, fur
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y 16%, assets under management of o
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Development of the External Environ
Page 10 and 11:
VUB’s 2007 Commercial Performance
Page 12 and 13:
Basic Indicators Basic Indicators i
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Consolidated balance sheet at 31 De
Page 16 and 17:
Consolidated statement of changes i
Page 18 and 19:
Notes to the consolidated financial
Page 20 and 21:
The assets and liabilities arising
Page 22 and 23: the fair value of the assets given,
Page 24 and 25: The fair value of securities held f
Page 26 and 27: Embedded derivatives The VUB Group
Page 28 and 29: 3.16 Intangible assets Intangible a
Page 30 and 31: 3.22 Legal reserve fund In accordan
Page 32 and 33: 3.30 Future changes in accounting p
Page 34 and 35: 7. Financial assets held for tradin
Page 36 and 37: 10. Loans and advances to customers
Page 38 and 39: Maturities of gross fi nance lease
Page 40 and 41: 13. Investments in associates and j
Page 42 and 43: The goodwill is reviewed for impair
Page 44 and 45: 17. Current income tax assets 2007
Page 46 and 47: 24. Other liabilities 2007 2006 Var
Page 48 and 49: (a) Issued guarantees Commitments f
Page 50 and 51: 31. Salaries and employee benefits
Page 52 and 53: 35. Profit before changes in operat
Page 54 and 55: 37. Financial risk management Intro
Page 56 and 57: The following table describes the G
Page 58 and 59: (b) Market risk Market risk is the
Page 60 and 61: The re-pricing structure of assets
Page 62 and 63: (c) Liquidity risk Liquidity risk i
Page 64 and 65: The Intesa Sanpaolo Group’s inter
Page 66 and 67: 39. Related parties Related parties
Page 68 and 69: Balance sheet at 31 December 2007 (
Page 70 and 71: Statement of changes in equity for
Page 74 and 75: 2.5 Foreign operations The fi nanci
Page 76 and 77: 2.10 Repurchase and reverse repurch
Page 78 and 79: 2.12 Offsetting financial instrumen
Page 80 and 81: 2.18 Leasing The determination of w
Page 82 and 83: 2.28 Significant accounting judgeme
Page 84 and 85: 3. Cash and cash equivalents For th
Page 86 and 87: 2007 2006 2007 2006 Assets Assets L
Page 88 and 89: During 2007, the Bank wrote off loa
Page 90 and 91: 12. Subsidiaries, associates and jo
Page 92 and 93: 15. Current income tax assets 2007
Page 94 and 95: 22. Other liabilities 2007 2006 Var
Page 96 and 97: (a) Issued guarantees Commitments f
Page 98 and 99: 30. Other operating expenses 2007 2
Page 100 and 101: 34. Estimated fair value of certain
Page 102 and 103: 35. Financial risk management Intro
Page 104 and 105: The following table describes the B
Page 106 and 107: (b) Market risk Market risk is the
Page 108 and 109: The re-pricing structure of assets
Page 110 and 111: (c) Liquidity risk Liquidity risk i
Page 112 and 113: The Intesa Sanpaolo Bank’s intern
Page 114 and 115: 37. Related parties Related parties
Page 116 and 117: Review of the Economic and Financia
Page 118 and 119: List of VUB Branches Retail Busines
Page 120 and 121: Postal Code Address Tel. No. Fax Re
Page 122 and 123:
Postal Code Address Tel. No. Fax Re
Page 124 and 125:
Corporate Branches Firemné obchodn
Page 126 and 127:
Structure of VUB Shareholders as at
Page 128 and 129:
VUB, a bank of Intesa Sanpaolo grou
Page 130 and 131:
Vladimíra Josefiová - Member of M
Page 132 and 133:
ticipate in all meetings of the Man
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