Annual report 2011 - VTB

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VTB BankNotes to the Consolidated Financial Statements – 31 December 2011 and 2010(in billions of Russian Roubles)36. Contingencies, Commitments and Derivative Financial Instruments (continued)Credit related commitments. The primary purpose of these instruments is to ensure that funds are available to acustomer as required. Guarantees that represent irrevocable assurances that the Group will make payments in theevent that a customer cannot meet its obligations to third parties carry the same credit risk as loans. Documentaryand commercial letters of credit (L/Cs), which are written undertakings by the Group on behalf of a customerauthorizing a third party to draw drafts on the Group up to a stipulated amount under specific terms and conditions,are collateralized by cash deposits and therefore carry less risk than direct borrowings.Commitments to extend credit represent unused portions of authorizations to extend credit in the form of loans,guarantees or letters of credit. With respect to credit risk on commitments to extend credit, the Group is potentiallyexposed to loss in an amount equal to the total unused commitments. However, the likely amount of loss is less thanthe total unused commitments since most commitments to extend credit are contingent upon customers maintainingspecific credit standards and/or the Bank confirming its willingness to extend a loan. The Group monitors the term tomaturity of credit related commitments because longer-term commitments generally have a greater degree of creditrisk than shorter-term commitments.The total outstanding contractual amount of irrevocable undrawn credit lines, letters of credit and guarantees does notnecessarily represent future cash requirements, as these financial instruments may expire or terminate without beingfunded.Outstanding credit related commitments are as follows:31 December201131 December2010Guarantees issued 510.9 216.5Undrawn credit lines 43.1 21.5Letters of credit 35.4 28.6Commitments to extend credit 36.7 –Less: provision for impairment on credit related commitments (Note 32) (1.1) (1.6)Total credit related commitments 625.0 265.0The Bank has received export letters of credit for further advising to its customers. The total amount of receivedletters of credit as at 31 December 2011 is RUR 172.8 billion (31 December 2010: RUR 154.0 billion). Commitmentsunder import letters of credit and guarantees are collateralized by customer deposits of RUR 11.9 billion(31 December 2010: RUR 9.6 billion).As at 31 December 2011, included in guarantees issued are guarantees issued for a Russian company ofRUR 27.4 billion or 5% of the guarantees issued. As at 31 December 2010, included in guarantees issued areguarantees issued for 2 related Russian companies of RUR 48.1 billion or 22% of the guarantees issued.Commitments under operating leases. The Group’s commitments under operating leases mainly of premisescomprised the following:Remaining contractual maturity31 December201131 December2010Not later than 1 year 3.5 2.9Later than 1 year but not later than 5 years 6.2 5.1Later than 5 years 3.7 3.4Total operating lease commitments 13.4 11.4Derivative financial instruments. Foreign exchange and other financial instruments are generally traded in an overthe-countermarket with professional market counterparties on standardized contractual terms and conditions.51
VTB BankNotes to the Consolidated Financial Statements – 31 December 2011 and 2010(in billions of Russian Roubles)36. Contingencies, Commitments and Derivative Financial Instruments (continued)The table below includes derivative contracts outstanding at 31 December 2011:Positivefair valueNegativefair valueForeign exchange and precious metals contractsForwards 5.5 (2.6)Futures 3.6 (1.6)Swaps 12.8 (16.5)Optionswritten put – (2.4)purchased put 2.2 –written call – (1.6)purchased call 0.8 –Contracts with securitiesForward purchase of Debt Securities 0.2 (0.2)Forward sale of Equity Securities 0.1 –Futures sale of Equity Securities – (0.1)Optionswritten put – (0.6)purchased put 3.5 –written call – (0.9)purchased call 1.2 –Interest Rate contractsSingle Currency Interest Rate swaps 11.9 (23.2)Cross Currency Interest Rate swaps 23.3 (18.2)Swaptionsbuy 0.1 –sell 0.1 (0.1)Interest Rate futuressell – (0.1)Contracts with other basic variablesSale of Credit Default swaps 8.5 (0.8)Purchase of Credit Default swaps 1.2 (9.5)Options on Indexeswritten put – (1.1)purchased put 1.1 –written call – (0.3)purchased call 0.2 –Commodity swaps 1.6 (1.7)Commodity futuressell 0.6 –Embedded derivatives on structured instrumentsEmbedded derivatives on forex instruments 0.4 –Derivatives held as fair value hedgesInterest Rate swaps 0.5 –Total derivatives 79.4 (81.5)52
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VTB Annual Report 2011Statement of
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VTB Annual Report 20113. The econom
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Today, about 16 million individuals
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VTB Annual Report 20118. 8. Выд
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VTB Annual Report 20118. Summary co
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VTB Annual Report 201111. Other Gro
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VTB Annual Report 201112. Sharehold
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VTB Annual Report 2011144VTB places
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Annual report 2011 - VTB

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