GB00_erste lage_E - Erste Group

Sundry operating expenses are comprised of valuation provisions for real estate projects (prop-
erty used by outside parties) and properties up for sale that are not used in banking operations
as well as expenses from various property development services.
35) Taxes on income
The taxes on income are made up of the current taxes on income calculated in each of the Group
companies based on the results as reported for tax purposes and the change in deferred taxes.
in EUR million 2000 1999
Current tax expense (18.2) (12.3)
Deferred tax expense (31.5) (36.7)
Total (49.7) (49.0)
The following reconciliation shows the relationship between the income tax rate and the rate actually
reported in the Income Statement:
in EUR million 2000 1999
Pre-tax profit for the year 276.7 241.5
Income tax expense expected for the financial year
at the domestic statutory tax rate (34%) (94.1) (82.1)
Impact of different foreign tax rates
Tax reductions due to tax-exempt earnings of
4.3 0.1
investments and other tax-exempt income 46.8 39.0
Tax increases due to non-deductible expenses
Tax expense/income not attributable
(9.9) (3.4)
to the reporting period 3.2 (2.6)
Reported taxes on income and earnings (49.7) (49.0)
36) Appropriation of net profit
in EUR million 2000 1999
Net profit after minority interests 191.8 164.6
Allocation to reserves (129.9) (110.0)
Profit carried forward 0.7 0.5
Distributable profit of the parent company 62.6 55.1
Erste Bank 2000 99