Annual Report 2013

2013 Non-consolidated Reports and Accounts Listen, understand, respond. 2013 Non-consolidated Reports and Accounts www.unicreditbank.cz This report expresses UniCredit’s approach to banking by telling everyday stories about our interactions with Customers, innovations in products and adaptability in services. These brief but meaningful stories come directly from our colleagues. They are examples of the tangible benefi ts and concrete solutions offered by UniCredit, demonstrating how we make a difference in people’s lives. Our clear goal to improve everyday circumstances is rooted in our complete commitment to outcomes that ensure Customer satisfaction. At UniCredit, listening to our Clients and engaging with them to offer simple, direct results lies at the heart of our commercial banking operations. It is part of our determined effort to contribute to the economic and social well-being of our Customers as well as the communities where we work. We will continue with this commitment to all of you, every day. 2013 Non-consolidated Reports and Accounts Accelerate Response times and problem solving. Sometimes our Customers may encounter some diffi culty, either at a branch or when banking online. These diffi culties require quick solutions. To help our Customers quickly, we offer them a questionnaire after every banking transaction. If they tell us they are not satisfi ed with the quality of a product or service, their branch manager contacts them directly within 48 hours, with a solution. In a six-month period, 15 percent of our Customers fi lled out the questionnaires, with 87 percent saying they were satisfi ed with our resolution of their issue. Customer Satisfaction Unit - UniCredit Bank - RUSSIA Obsah Contents Financial highlights 4 Introduction from the Board of Directors 6 Report of the Board of Directors 15 Report of the Supervisory Board 17 Basis for calculating the contribution to the Guarantee Fund 17 Non-consolidated financial statements 19 Statement of comprehensive income for 2013 19 Statement of financial position as at 31 December 2013 20 Statement of cash flows for 2013 21 Statement of changes in equity for 2013 22 Notes to the non-consolidated financial statements 23 Auditor’s report on the annual report 66 Supplementary information 69 Report on relations between the controlling and controlled entities 88 List of branches 92 UniCredit Bank • 2013 Annual Report 3 Financial highlights (IFRS audited, non-consolidated) 31 Dec 2013 31 Dec 2012 UniCredit Bank Czech Republic and Slovakia, a.s. MCZK * MCZK ** Operating results Net interest and similar income 7,100 6,184 Net fee and commission income 2,836 2,056 Administrative expenses (5,865) (4,627) Profit before income tax 3,956 3,694 Net profit for the year 3,170 3,157 Statement of financial position figures Total assets 464,622 318,909 Receivables from clients 289,945 184,715 Deposits from clients 306,298 195,120 Issued capital 8,755 8,750 Information about capital and capital adequacy Tier 1 45,260 31,563 Tier 2 1,464 531 Deductible items (148) (57) Capital 46,576 32,037 Risk-weighted assets 262,712 177,672 Capital requirement for credit risk under the standardised approach 4,255 2,119 Capital requirement for credit risk under the IRB approach 16,762 12,095 Capital requirement for settlement risk – – Capital requirement for position, foreign exchange and commodity risk 1,156 732 Capital requirement for operational risk 1,963 1,257 Capital requirement for other instruments in the trading portfolio – – Capital adequacy ratio 15.44% 15.82% Key ratios Return on average assets 0.8% 1.0% Return on original capital 8.3% 10.2% Assets per employee 151.3 163.4 Administrative expenses per employee 1.9 2.4 Profit after tax per employee 1.0 1.6 Number of employees at end of period 3,062 2,004 Branch offices 175 98 * merged bank CZ + SK ** only CZ 4 2013 Annual Report • UniCredit Bank UniCredit Bank • 2013 Annual Report 5 Introduction from the Board of Directors Dear shareholders, ladies and gentlemen, We have published the first 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 individual Czech and Slovak UniCredit Banks into one, more powerful bank operating in both markets. The aim of this merger was to keep the best of both banks, efficiently manage our financial balance sheet, liquidity, and expenses, as well as to utilise the synergies offered by the very closely connected Czech and Slovak markets. Complying with the new model of commercial leasing activities of the UniCredit group, we finalised the acquisition of UniCredit Leasing in the Czech Republic and Slovakia in March 2014. All these steps are part of the strategic plan to create a strong financial group operating in the Czech as well as the Slovak market. Despite the difficult macroeconomic situation and an environment with low interest rates, we managed to achieve very good economic results last year, and this is well illustrated by our net profit of CZK 3.2 billion. Thanks to the strong demand for mortgages and consumer loans in both countries and for structured financing, where we participated in the biggest transactions in both markets, we managed to increase the number of loans granted to clients in the Czech market by 10% and in Slovakia by 9%. At the same time, client deposits grew thanks to a substantial increase in the number of new clients. Growth in loans provided confirms that we support Czech and Slovak companies and households despite these less favourable times. Moreover, as our recent analyses show, there is nothing that would hinder moderate growth of the Czech economy; it is structurally healthy, exporters are competitive, the debt-equity rate is still relatively low, and domestic banks have enough funds to continue financing even the very ambitious investment projects and business plans of Czech companies. 6 2013 Annual Report • UniCredit Bank Úvodní slovo představenstva We want to confirm our position as a key player in the segment of In the area of philanthropy, we continued our cooperation in Slovakia large supranational and domestic companies, including the expansion with MAGNA Children at Risk, which helps children from developing of our activities in the segment of small and medium-sized countries. Besides direct financial support, the Bank supported the enterprises. We will also work on our expert role in retail banking in activities of this association by way of charitable MAGNA credit and the Czech Republic and Slovakia, including the provision of innovative debit payment cards. Further, the Bank actively supports the project products and services and the further expansion of branches. MAGNA Saviour, through which clients as well as employees of the Bank can regularly help children at risk in crisis regions starting To be able to attain these goals with success, we need to maintain at EUR 3.00. the strong confidence and satisfaction of our clients. We have been successful in this, confirmed by the awards we have won recently; Also, employees of our Bank took part in charitable projects these awards were granted thanks to the votes of experts as well and through the Gift Matching Program supported the non-profit as particular clients. organisations of their choice. By the end of the year, we had provided substantial funds via the UniCredit Foundation for the development UniCredit Bank got Global Finance’s highest Central and Eastern of social business in the Czech Republic and Slovakia. European award in the area of business financing while at the same time receiving Euromoney’s best bank award in the area of Cash In the area of sponsorship, our cooperation with the International Film Management. Apart from this, our Bank continues to be traditionally Festival Karlovy Vary plays a key role. Moreover, we have supported recognised with a prize in the Zlatá koruna competition. big tennis events for many years, with the UniCredit Czech Open tournament in the foreground. The UniCredit Group is the official bank As in preceding years, we maintained our standing of a socially of UEFA Champions League – the most prestigious football league responsible company in 2013; the support of art, cultural heritage, of the world – for the whole period from July 2009 to June 2015. and sports activities remains our key priority. Looking back upon 2013, I have to say that it was a truly difficult For example, we have for many years been supporting the Art Prague period. We handled it with success and without any loss to the quality and Prague Photo festivals, where we grant the UniCredit Prague of our services, and this was particularly thanks to the support of the Photo Award and Art Prague Young Award to the best young UniCredit Group and the efforts of all the Bank’s employees. I would photographers and artists under 35. In music we have great therefore like to express my gratitude and appreciation to all our cooperation with the Dvořák Festival, which connects artists of various employees. genres and presents Dvořák’s music in unexpected arrangements and styles. Newly supported by UniCredit Bank are the Czech Culture Festivities, a series of festivals aimed at the maintenance and 30 April 2014 systematic support of key spiritual values of the Czech nation. Jiří Kunert Chairman of the Board of Directors and CEO UniCredit Bank • 2013 Annual Report 7 Macroeconomic environment in 2013 The year 2013 brought a second decrease in GDP by 0.9%. The summer government crisis, the calling of premature elections in The bottom of the recession was reached as early as in the first October, and the caretaker government in the second half of the year quarter and subsequent growth in GDP from quarter to quarter meant that the year 2013 went without substantial changes in resulted in the fourth quarter’s y/y economic performance returning economic policy.

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