The World Is Changing. Let's Change Together
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The world is changing. Let’s change together. 2014 Consolidated Reports and Accounts WorldReginfo - 946a4507-e6e0-4a1b-9fad-93df6fcd3b44 Time Give it more value. is precious. Advice when you want it. Everyone needs advice. And no one wants to waste time. That is why we created Video Advice@home. This convenient service delivers expert advice online, allowing you to connect with our consultants from the comfort of home. Easy-to-install software enables us to respond quickly to questions about your current account, car loan or mortgage. We can create value for you, whenever and wherever you need us. WorldReginfo - 946a4507-e6e0-4a1b-9fad-93df6fcd3b44 Obsah Contents Consolidated financial highlights 4 Non-consolidated financial highlights 6 Introduction from the Board of Directors 8 Report of the Board of Directors 19 Report of the Supervisory Board 23 Basis for calculating the contribution to the Guarantee Fund 23 Consolidated financial statements 25 Consolidated statement of comprehensive income 25 Consolidated statement of financial position 26 Consolidated statement of cash flows 27 Consolidated statement of changes in equity 28 Notes to the consolidated financial statements 29 Non-consolidated financial statements 76 Statement of comprehensive income for 2014 76 Statement of financial position as at 31 December 2014 77 Statement of cash flows for 2014 78 Statement of changes in equity for 2014 79 Notes to the non-consolidated financial statements 80 Auditor’s report on the annual report 124 Supplementary information 128 Report on relations between the controlling and controlled entities 147 List of branches 159 UniCredit Bank • 2014 Annual Report 3 WorldReginfo - 946a4507-e6e0-4a1b-9fad-93df6fcd3b44 Consolidated* Financial Highlights (IFRS audited) 31 Dec 2014 31 Dec 2013 UniCredit Bank Czech Republic and Slovakia, a.s. MCZK MCZK Operating results Net interest and similar income 10 049 7 100 Net fee and commission income 3 557 2 836 Administrative expenses (7 170) (5 865) Profit before income tax 6 030 3 956 Net profit for the year 4 911 3 170 Statement of financial position figures Total assets 508 616 464 622 Receivables from clients 339 510 289 945 Deposits from clients 328 585 306 298 Issued capital 8 755 8 755 Key ratios Return on average assets 1.0% 0.8% Return on Tier 1 capital 10.6% 8.3% Assets per employee 154.4 151.3 Administrative expenses per employee 2.2 1.9 Profit after tax employee 1.5 1.0 Information about capital and capital adequacy** Tier 1 47 397 45 260 Tier 2 1 051 1 464 Deductible items – (148) Own funds 48 448 46 576 Capital requirements for credit risk under the standardised approach: 5 708 4 255 Capital requirement for exposures towards regional governments or local authorities 7 – Capital requirement for exposures towards institutions 2 1 Capital requirement for exposures towards corporates 2 073 684 Capital requirement for retail exposures 1 722 3 017 Capital requirement for exposures secured by mortgages on immovable property 627 *** Capital requirement for exposures in default 515 Capital requirement for equity exposures 21 176 Capital requirement for other items 741 377 Capital requirements for credit risk under internal ratings based approach: 18 553 16 762 Capital requirement for exposures towards central governments and central banks 540 870 Capital requirement for exposures towards institutions 750 1 143 Capital requirement for exposures towards corporates 15 992 14 749 Capital requirement for retail exposures 1 271 – Capital requirement for position risk 596 1 054 Capital requirement for foreign exchange risk 97 59 Capital requirement for settlement risk – – Capital requirement for commodities risk 281 43 Capital requirement for operational risk 1 647 1 963 CET1 Capital ratio 14.04% *** Tier 1 Capital ratio 14.04% *** Total capital ratio 14.35% 15.44% Number of employees at the end of the period 2 932 3 062 Branch offices 173 175 * data as of 31.12.2013 are non-consolidated, financial results and key ratios include the information for UniCredit Bank Czech Republic, a.s. for the period from 1 January 2013 to 30 June 2013 and the information for UniCredit Bank Czech Republic and Slovakia, a.s. for the period from 1 July 2013 to 31 December 2013 ** data as of 31.12.2014 are according to Basel III framework, data as of 31.12.2013 according to Basel II *** data were not presented under Basel II framework 4 2014 Annual Report • UniCredit Bank WorldReginfo - 946a4507-e6e0-4a1b-9fad-93df6fcd3b44 Reconciliation of equity in the statement of financial position and own funds (consolidated) 31 Dec 2014 UniCredit Bank Czech Republic and Slovakia, a.s. MCZK Statement of financial position figures: Issued capital 8 755 Share premium 3 495 Reserve funds from revaluation 5 635 Retained earnings and reserve funds 35 614 Profit for the period 4 911 Total equity 58 410 Adjustments of CET1 capital: Profit for the period (4 911) Reserve from revaluation of hedging instruments (2 122) Reserve from revaluation of available for sale securities (2 687) FX differences from foreign branch (7) Intangible assets (97) Effect of subsidiaries not included in prudential consolidation group (1 189) Total CET 1 capital 47 397 Total Tier 1 (T1) capital 47 397 Provisions 10 587 Expected losses (9 536) Total Tier 2 (T2) capital 1 051 Own funds 48 448 UniCredit Bank • 2014 Annual Report 5 WorldReginfo - 946a4507-e6e0-4a1b-9fad-93df6fcd3b44 Non-consolidated* Financial Fighlights (IFRS audited) 31 Dec 2014 31 Dec 2013 UniCredit Bank Czech Republic and Slovakia, a.s. MCZK MCZK Operating results Net interest and similar income 8 984 7 100 Net fee and commission income 3 348 2 836 Administrative expenses (6 646) (5 865) Profit before income tax 5 326 3 956 Net profit for the year 4 361 3 170 Statement of financial position figures Total assets 480 910 464 622 Receivables from clients 312 133 289 945 Deposits from clients 328 712 306 298 Issued capital 8 755 8 755 Key ratios Return on average assets 0.9% 0.8% Return on Tier 1 capital 9.5% 8.3% Assets per employee 163.5 151.3 Administrative expenses per employee 2.3 1.9 Profit after tax employee 1.5 1.0 Information about capital and capital adequacy** Tier 1 47 024 45 260 Tier 2 1 012 1 464 Deductible items – (148) Own funds 48 036 46 576 Capital requirements for credit risk under the standardised approach: 3 178 4 255 Capital requirement for exposures towards regional governments or local authorities 7 – Capital requirement for exposures towards institutions – 1 Capital requirement for exposures towards corporates 820 684 Capital requirement for retail exposures 810 3 017 Capital requirement for exposures secured by mortgages on immovable property 564 *** Capital requirement for exposures in default 139 Capital requirement for equity exposures 303 176 Capital requirement for other items 535 377 Capital requirements for credit risk under internal ratings based approach: 19 658 16 762 Capital requirement for exposures towards central governments and central banks 540 870 Capital requirement for exposures towards institutions 760 1 143 Capital requirement for exposures towards corporates 17 087 14 749 Capital requirement for retail exposures 1 271 – Capital requirement for position risk 596 1 054 Capital requirement for foreign exchange risk 103 59 Capital requirement for settlement risk – – Capital requirement for commodities risk 281 43 Capital requirement for operational risk 1 422 1 963 CET1 Capital ratio 14.83% *** Tier 1 Capital ratio 14.83% *** Total capital ratio 15.15% 15.44% Number of employees at the end of the period 2 932 3 062 Branch offices 173 175 * financial results and key ratios include the information for UniCredit Bank Czech Republic, a.s. for the period from 1 January 2013 to 30 June 2013 and the information for UniCredit Bank Czech Republic and Slovakia, a.s. for the period from 1 July 2013 to 31 December 2013 ** data as of 31.12.2014 are according to Basel III framework, data as of 31.12.2013 according to Basel II *** data were not presented under Basel II framework 6 2014 Annual Report • UniCredit Bank WorldReginfo - 946a4507-e6e0-4a1b-9fad-93df6fcd3b44 Reconciliation of equity in the statement of financial position and own funds (non-consolidated) 31 Dec 2014 31 Dec 2013 UniCredit Bank Czech Republic and Slovakia, a.s. MCZK MCZK Statement of financial position figures: Issued capital 8 755 8 755 Share premium 3 495 3 495 Reserve funds from revaluation 5 667 2 951 Retained earnings and reserve funds 33 961 32 376 Profit for the period 4 361 3 170 Total equity 56 239 50 747 Adjustments of CET1 capital: Profit for the period (4 361) (3 170) Reserve from revaluation of hedging instruments (2 154) (851) Reserve from revaluation of available for sale securities (2 687) (1 415) FX differences from foreign branch (7) – Intangible assets (6) (12) Total CET 1 capital 47 024 45 260 Total Tier 1 (T1) capital 47 024 45 260 Provisions 10 587 8 997 Expected losses (9 575 (7 533) Total Tier 2 (T2) capital 1 012 1 464 Deductible items from Tier 1 + Tier 2 * (148) Own funds 48 036 46 576 * data are not presented under Basel III framework UniCredit Bank • 2014 Annual Report 7 WorldReginfo - 946a4507-e6e0-4a1b-9fad-93df6fcd3b44 Introduction from the Chairman of the Board of Directors Dear shareholders, ladies and gentlemen This is the second annual report of UniCredit Bank Czech Republic and Slovakia, a. s., which came into existence at the end of 2013 through the merger of the Czech and the Slovak UniCredit Banks, with the aim of creating a more powerful financial institution operating on both markets and providing a higher standard of services via its network of branches in Slovakia and the Czech Republic.