Annual Report: - Gorenjska banka

104
Gorenjska banka, d. d., Kranj
Annual Report 2011
Financial Report
In thousands of EUR
2011 2010
20. Available-for-sale financial assets
Debt securities - listed
Equity investment
439,158 441,164
- Listed 52,466 49,431
- Unlisted 9,961 8,692
501,585 499,287
Financial instruments in the amount of EUR 1,073 thousand (2010: EUR 170 thousands) (unlisted equity securities)
is accounted for at cost due to the fact that there is no active market for these securities and the Bank can not reliably
measure their fair value or the cost of fair value measurements exceeded the benefits. These investments are in
majority investments in non public companies with relatively closed ownership. The Bank has not defined its intention
regarding the term of holding these investments. The Bank expects to sell the investments in case of an attractive offer,
however it is able and willing to hold these investments as a long-term investment.
The equity investments include also an investment in company Iskratel, d. o. o., Kranj where the Bank holds a 25%
share. The Bank is going to dispose of this share in the future under an existing forward sales agreement with maturity
in 2012. The contract gives the Bank a right to receive the payment in the form of financial assets. Although the Bank
still owns 25% share in equity of Iskratel, the company is not accounted for as an associate under IAS 28, as the Bank
has no significant influence over the company. The investment is valued at contract value.
At the end of 2011, a fund of ECB eligible financial property that can be pledged for ECB loans contained 1,623,030
RS57 bonds, 1,000,000 RS59 bonds, 350,000 RS54 bonds, 10,000,000 French inflation bonds OATI22 and 1,000,000,000
German inflation bonds OBLI18. As of 31 December 2011 the fund amounted to EUR 140,724 thousand (2010: EUR
211,826 thousand), the value of free financial property was EUR 61,670 thousand (2010: EUR 137,800 thousand).
In order to comply with the regulation requiring sufficient liquid funds for guaranteed deposits the Bank had as of 31
December 2011 EUR 16,657 thousand (2010: EUR 16,262 thousand) (2,2% of the total amount of guaranteed deposits)
invested in RS49, RS67 and RS68 bonds.
Among the listed bonds, they were in 2010 included the bonds in the amount of EUR 314 thousand, which have the
nature of subordinated debt. Commitments at the time the bankruptcy or liquidation are subordinated to debt
instruments and are not paid soon, until they are paid all the (not-subordinated) obligations to ordinary creditors. Other
than interest and principal, the Bank from such bonds had no other rights. V letu 2011 takšnih obveznic ni bilo. In 2011,
there was no such bonds.
Due to the decrease in the fair value of the Greek government bond with the code GGB22 (the Bank classifies it under
available-for-sale assets) and the existence of objective evidence that the bond has become impaired for reasons of
major financial difficulties of the issuer, the state of Greece, the Bank has, in compliance with IAS 39, transferred
cumulative loss recognized within other comprehensive income to the income statement despite the fact that
derecognition was not made and the bond was not sold. The effect of revaluation on the listed price and the amount of
transferred impairment equalled EUR 17,639 thousand.
In the first two months of 2012, the price of the GGB22 bond almost did not change due to the expected exchange of
bonds in March 2012 and the known exchange terms (from the end of December 2011 to the end of February 2012, it
only increased slightly, from 20 to 20.23).
Due to a long-term and significant decrease in the fair value of shares of Istrabenz, d.d., Koper with the code ITBG, the
Bank has, in compliance with IAS 39, also transferred cumulative loss recognized within other comprehensive income to
the income statement, despite the fact that derecognition was not made and that the equity share was not sold
(the Bank classifies the 7.3-percent equity stake in the company under available-for-sale financial assets). The amount
of transferred losses equalled EUR 1,479 thousand.
The Bank acted in the same manner for the NFD Holding, d.d., Ljubljana shares with the code NF2R (the Bank classifies
the 3.3-percent equity stake under available-for-sale financial assets). The amount of transferred losses equalled EUR
3,186 thousand.