Annual Report - VÃB banka

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(a) Issued guarantees Commitments from guarantees represent irrevocable assurances that the Bank will make payments in the event that a borrower cannot meet its obligations to third parties. These assurances carry the same credit risk as loans and therefore the Bank makes provisions against these instruments on a similar basis as is applicable to loans. (b) Commitments and undrawn credit facilities The primary purpose of commitments to extend credit is to ensure that funds are available to the customer as required. Commitments to extend credit issued by the Bank represent issued loan commitment, undrawn portions of and approved overdraft loans. (c) Lease obligations In the normal course of business, the Bank enters into operating lease agreements for branch facilities and cars. The total value of future payments arising from non-cancelable operating leasing contracts at 31 December 2007 was as follows: 2007 2006 Up to 1 year 46 55 1 to 5 years 82 128 Over 5 years - - 128 183 (d) Legal In the ordinary course of business the Bank is subject to a variety of legal actions. The Bank conducted a review of legal proceedings outstanding against it as of 31 December 2007. Pursuant to this review, management has recorded as of 31 December 2007 a provision of Sk 968 million (31 December 2006: Sk 990 million) in respect of such legal proceedings (see also note 21). The Bank will continue to defend its position in respect of each of these legal proceedings. 25. Net interest income 2007 2006 Interest and similar income Loans and advances to banks 1,502 1,747 Loans and advances to customers 7,770 6,189 Bonds, treasury bills and other securities: Financial assets held for trading 383 36 Available-for-sale fi nancial assets 128 68 Held-to-maturity investments 3,851 3,252 13,634 11,292 Interest expense and similar charges Deposits from banks (610) (444) Deposits from customers (4,352) (3,505) Debt securities in issue (1,195) (762) (6,157) (4,711) 7,477 6,581 95 Interest income on individually impaired loans and advances to customers for 2007 amounted to Sk 156 million (2006: Sk 119 million). VUB, a bank of Intesa Sanpaolo group
26. Net fee and commission income 2007 2006 Fee and commission income Received from banks 193 204 Received from customers 2,864 2,669 Received from other fi nancial operations 277 285 3,334 3,158 Fee and commission expense Paid to banks (251) (223) Paid to customers (970) (978) Paid due to other fi nancial operations (20) (19) (1,241) (1,220) 2,093 1,938 27. Net trading income 2007 2006 Foreign currency derivatives and transactions 1,051 1,026 Interest rate derivatives 13 37 Securities: Available-for-sale fi nancial assets 195 82 Financial assets held for trading 5 (4) 1,264 1,141 96 28. Other operating income 2007 2006 Rent 54 53 Net profi t from sale of fi xed assets 3 39 Other 43 64 100 156 29. Salaries and employee benefits The total number of employees of the Bank at 31 December 2007 was 3,436 (2006: 3,593). The remuneration and other benefi ts provided to members of the Supervisory Board and the Board of Directors in 2007 was Sk 89 million (2006: Sk 99 million). 2007 2006 Salaries (1,649) (1,699) Social security costs (646) (613) Provisions for severance (note 22) 19 (37) Provisions for retention program (note 22) 5 (17) (2,271) (2,366) The Bank does not have any pension arrangements separate from the pension system established by the law, which requires mandatory contributions of a certain percentage of gross salaries to the State owned Social insurance and privately owned pension funds. These contributions are recognized in the period when salaries are earned by employees. No further liabilities are arising to the Bank from the payment of pensions to employees in the future. <strong>Annual</strong> <strong>Report</strong> 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
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VUB’s 2007 Commercial Performance
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Basic Indicators Basic Indicators i
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Consolidated balance sheet at 31 De
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Consolidated statement of changes i
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Notes to the consolidated financial
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The assets and liabilities arising
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the fair value of the assets given,
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The fair value of securities held f
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Embedded derivatives The VUB Group
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3.16 Intangible assets Intangible a
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3.22 Legal reserve fund In accordan
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3.30 Future changes in accounting p
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7. Financial assets held for tradin
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10. Loans and advances to customers
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Maturities of gross fi nance lease
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13. Investments in associates and j
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The goodwill is reviewed for impair
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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 72 and 73: Notes to the separate financial sta
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 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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