Branko Jelínek: Portrét vlajky II. / Porträt der Flagge II. / Portrait of the

Branko Jelínek: Portrét vlajky II. / Porträt der Flagge II. / Portrait of the flag II.
• naroden˘ 21. apríla 1978 v Banskej ·tiavnici
• 1992 – 1996 ‰tudent ·UV v Ko‰iciach na odbore propagaãná grafika
• od roku 1996 ‰tudent V·VU v Bratislave na katedre grafiky, ateliér Voºnej grafiky a kniÏnej illustrácie
pod vedením profesora akademického maliara Du‰ana Kállaya.
Annual Repor t 1999
45
A Wo r d f r o m t h e M a n a g i n g B o a r d
Dear clients and friends of ªUDOVÁ
BANKA,
The last year before the turn of the millennium, 1999, is the eighth year of
operations for ªUDOVÁ BANKA. The
year was also the year in which the Slovak government, following the parliamentary elections in September 1998,
implemented measures aimed at stabilising the economy and regaining macro
economic balance. As a result of these
measures there was a slow down in
economic growth, a significant increase
in the rate of unemployment and consi-
46
derable problems in the entrepreneurial
sector were experienced. However, sig-
From left:
Karl Mayr-Kern, Wolfgang Siller, Jozef Kollár, Alexander Bayr
nificant progress was made in the process of restructuring state banks and in
the Bratislava region. ªUDOVÁ BANKA
A significant contribution was made by
their preparation for the entry of strate-
now has 21 branches. The expansion
the Information Technology Department
gic foreign investors.
of the branch network to cover all the
in the smooth transition from 1999 to
important geographical areas of the Slo-
2000. Of great importance for the
As would be expected, these measures
vak Republic remains a key component
Bank in 2000 is the successful completi-
also influenced the business activities of
of the Bank’s strategic commercial ob-
on of the electronic banking project.
ªUDOVÁ BANKA. Although there was a
jectives for the coming year. The market
slow down in the growth of some of the
positioning of ªUDOVÁ BANKA as a
Looking towards the future, pressures on
Bank’s key indicators (total assets, depo-
subsidiary of ÖVAG - a regional Euro-
margins, declining yields from state se-
sits, customer loans), it was not as signi-
pean bank - proved to be correct. Cur-
curities and upward pressure on opera-
ficant as the slow down and, in certain
rent trends towards globalisation, espe-
tional costs (especially human resources)
cases decrease, experienced in the rest
cially in the banking and insurance sec-
will require the Bank to adapt. This will
of the banking sector. ªUDOVÁ BAN-
tors, creates even more market opportu-
be accomplished mainly through impro-
KA’s market share continued to grow
nities for regional banks focusing on
vement and increased quality and inno-
during the year. To ensure that growth
small and medium-size enterprises and
vation in banking products and in the
would not adversely impact the loan
private banking.
long-term investment in human resources.
portfolio, of the Bank. There was strict
adherence to the principles of proden-
As a result of the Bank’s objective to di-
tial banking. The Bank’s strategy during
versify its range of services to private
The Bank would like to express its grati-
this period was growth in quality.
and corporate sectors, the Bank’s licen-
tude towards all staff members of
ce was amended to include mortgage
ªUDOVÁ BANKA, its clients, business
The growth in the Bank’s branch net-
lending and the sale of insurance pro-
partners and shareholders. We believe
work continued during 1999. New
ducts. Following from these amend-
that you will remain committed to a fi-
branches were opened in Luãenec,
ments, the previously announced coope-
nancial institution that combines foreign
Banská Bystrica and RuÏomberok. At
ration with VV AG and with OVVV
know-how with a deep knowledge of
the beginning of 2000, a branch was
came to fruition.
the Slovak market.
opened in Pre‰ov and sub-branches in
ªUDOVÁ BANKA. TRUST IS COMMITMENT.
Highlights
1998
1997
in SKK million
in SKK million
in SKK million
Total assets
22,279
20,378
15,704
Clients’ payables
17,580
16,386
12,139
6,160
7,377
5,790
Operating profits
944
927
685
Operating costs
598
459
411
Earnings from ordinary activities
227
265
197
Number of employees
483
417
338
20
16
13
Clients’ receivables
Number of branches
47
A n n u a l R e p o r t 19 9 9
1999
Bank Management
Supervisory Board
Board of Directors
President
Klaus Thalhammer
Deputy General Director
Vice-Chairman of the Management Board
Österreichische Volksbanken-AG.,
Vienna
Vice-Chairman
Andrej Hrádocký
Karl Mayr-Kern
Physician
Trenčín
till 13.4.2000
Director
Chairman
till 13.4.2000
Hans Janeschitz
Jozef Kollár
Director
Österreichische Volksbanken-AG., Vienna
Director
Vice-Chairman
till 13.4.2000
Chairman
since 14.4.2000
Ekkehard Fügl
Pierre Klein
Head of Foreign Payments Dept.
Österreichische Volksbanken-AG., Vienna
since 15.4.1999
Vicepresident
Chambre Syndicale des Banques Populaires,
Paris
Peter Weiß
Franz Lagler
Director, Consultant
Österreichische Volksbanken-AG., Vienna
till 15.4.1999
Director, Chairman of Board
Volksbank Krems-Zwettl AG., Krems
till 15.4.1999
Karl Mayr-Kern
Members
Zdenko Alexy
48
Advisor
Stock Exchange, j.s.c., Bratislava
Ugo Fatini
General Management Advisor
Banca Popolare di Vicenza, Italy
till 13.4.2000
Andrej Glatz
Director
Motorcar Wiesenthal & Co.,
Bratislava
Director, Chairman of Board
Magyarországi Volksbank Rt., Hungary
since 14.4.2000
Rastislav Opaterný
Commercial Lawyer
Bratislava
Hubert Piel
Management Director
Member of the Management Board
WGZ-Bank, Düsseldorf
till 15.4.1999
Stephan Wolf
Consultant
Slovak Technical University
Bratislava
Gerhard Wöber
Foreign Payments Dept.
Österreichische Volksbanken-AG., Vienna
since 15.4.1999
Matthäus Thun-Hohenstein
Director
Member
till 10.12.1999
Wolfgang Siller
Director
Member
since 15.4.1999
Alexander Bayr
Director
Member
since 10.12.1999
S e n i o r E xe c u t i ve s
Departments
Holders of procuration
Jana Krempová
Alica Bobková
Ivan Oravský
Director
Economics Dept.
Head of Credit Administration
Director
Bratislava, Motobanka
Ján Hargaš
Jana Kudláčová
Senior Account Manager
Pavol Príhoda
Director
Treasury Dept.
Peter Kníž
Director
Galanta
Head of Dealing
Jarmila Pašteková
Nina Stankeová
Director
Administration and Supplies
Irena Kobzová
Head of Accounting & Statistics Dept.
responsible for Branch Management
Bratislava, Nám. SNP 15
Oľga Rebrová
Štefan Prachár
Marián Šimoňák
Director
Risk Management Dept.
Head of Information Systems Dept.
Director
Lučenec
Director
Head of Branch Network
Alexander Spišiak
Director
Account Management Dept.
Credit & Loans
Ján Rašo
Head of IT Development
Milan Šikula
Head of Documentary Payments
Directors of Branches
Jozef Boržík
responsible to run the division
Back Office
Director
Prešov
Jaroslava Šuchová
Elena Hegerová
Director
Head of International Division
Director
Banská Bystrica
Stanislav Jakubík
Johannes Breiteneder
Internal Audit
Alena Huťanová
Human Resources
Ľubomír Nemček
Director
Legal Counsel
Jaroslava Pribylincová
Director
Marketing and Publicity
Alexander Turan
Director
Trenčín
Monika Ježková
Director
Žilina
Ľudovít Korotnoky
Director
Košice
Tatiana Krajmerová
Director
Nitra
Roman Kurák
Director
Ružomberok
Building Projects
Monika Zvarová
Translations Dept.
Július Bujdák
Head
Šaľa
Miroslav Frič
Lucia Šimková
Sections
Sub-branches
Bystrík Mucha
Director
Poprad
Head
Bratislava, Špitálska 37
49
Danica Gombošová
Head
Bratislava, Jesenského 2
Rastislav Ilenčík
Head
Bratislava, Ľ. Fullu 62
Gabriela Laluhová
Head
Bratislava, Trnavská 50/A
Juraj Lóci
Head
Bratislava, Dulovo nám. 1
Marián Miškeje
Head
Bratislava, Sch. Trnavského 14
Katarína Sadloňová
Director
Bratislava, Vysoká 9
Jozef Sloboda
Head
Bratislava, Haanova 12
Annual Report 1999
David Saleh
International Integration
ªudová Banka began trading in Slova-
ÖVAG has been active in Central and
Co-operating through the international
kia in 1992. The main shareholder is
Eastern Europe for approximately 10
association of Volksbanken (CIBP) and
Österreichische Volksbaken-AG.
years and provides professional financi-
its network of 42,000 banking outlets in
(ÖVAG). Other shareholders include
al services through more than 1,000
the member states of Argentina, Belgi-
GZB, WGZ-Bank, SGZ-Bank, members
staff operating in a network of over 50
um, Germany, France, Italy, Canada,
of the Austrian Volksbanken, group of
branches in Croatia, Slovakia, Slove-
Marocco, Spain, Turkey, Hungary,
north Italian Volksbanken and individual
nia, the Czech Republic and Hungary.
Great Britain and Japan and with the
Slovakshareholders.
In addition, there is a Volksbank in
stakes held by DG BANK in ÖVAG,
Malta and a representative office in
ªUDOVÁ BANKA is able to offer a
ÖVAG was established 1992 with the
Italy. In the course of 2000, subsi-
worldwide presence in all major financi-
founding of the Osterreichische Zentral-
diaries will commence operations in Ro-
al centres.
genossenschaftskasse as the umbrella
mania and Bosnia-Herzegovina.
organisation for a decentralised banking sector. ÖVAG is one of Austria’s
ten largest banks and is owned by ap-
50
proximately 60 Volksbanken with more
than 600 branches. Additional shareholders are DG BANK Deutsche Genossenschaftsbank AG., VICTORIA
Ruckversicherung AG., VICTORIA Versicherung AG. and Raiffeisen Zentralbank
Shareholders
VBB-International Holding GmbH
Share in %
71,7
GZB
3,3
assets in 1999 of approximately ATS
WGZ-Bank
3,3
400 billion and a total of 7,200 staff,
SGZ-Bank
3,3
Volksbank Donau-Weinland
0,2
Niederösterreichische Landes- und Hypothekenbank AG.
2,5
Volksbank Ötscherland
1,7
Volksbank Waldviertler Horn
0,2
Banca Agricola Mantovana
3,4
Banca Popolare dell’ Emilia Romagna
3,4
VENETO BANCA
2,3
Banca Popolare di Vicenza
2,3
Small shareholders
2,4
Osterreich AG.. With accumulated total
the Austrian Volksbaken Group is one of
Austria’s most successful banking
groups.
Together
100,0%
S l ova k E c o n o m y i n 19 9 9 a n d P r o s p e c t s f o r 2 0 0 0
Macroeconomic Imbalance
The economic policy before 1999 was
characterised by comparatively high
growth with a parallel increase in both
external and internal imbalances. In
1998, the current account deficit as a
percentage of GDP was over 10%,
gross foreign debt exceeded 60% of
GDP and the budget deficit, including
the public finance deficit was in excess
of acceptable norms in mature economies. This was due to an economic policy which requided funds in excess of
available sources. Subsequent to the election in the autumn of 1998, the new
government’s policies focused on ending adverse economic trends and regaining balance.
GDP Decrease and Growing Unemployment
A direct result of regaining balance in
1999 was a decrease in GDP growth
to 2% compared to 6% in the years
1995 to 1997 and 4.4% in 1998.
GDP growth prior to 1998 was amongst the highest in the transition economics of central and eastern Europe. The
main source of this growth was foreign
demand. With the slow-down in the
economic imbalances. This included the
Forecast for 2000
introduction of a temporary 7% import
The stabilisation of the macro economy
surcharge, increases in excise taxes and
VAT and also partial price deregulation.
As a result of these measures, year-onyear inflation increased to 14.2% in December 1999 and the average inflation
rate for the year increased to 10.6%.
As a consequence of price deregulation, electricity, energy, natural gas, heating and telecommunication charges increased.
Positive Change in Foreign
Trade
The deficit on the balance of payments
decreased in 1999 by SKK 37.2 billion to SKK 45.7 billion compared to
1998. The increased deficit in 1998
had resulted in pressures on the Slovak
Crown and on the reserves of the National Bank of Slovakia. The main factors that lead to the improvement in the
balance of payments were, firstly, a
decrease in domestic demand, which
resulted in a decrease in imports (yearon-year growth of 1.6%); and secondly,
exports increased (year-on-year growth
of 11.8%) as a result of the recovery of
the economies in the Euro zone.
growth rate in the economy and the
Restrictive Fiscal Policy - Lower
Budgeted Public Debt
delay in restructuring, the high level of
The expansive fiscal policy of recent
unemployment became critical. At the
years was replaced by a restrictive fis-
end of 1999 unemployment reached
cal policy in 1999. This resulted in the
the alarming level of 19%, which is a
deficit reaching, according to prelimi-
25% increase year-on-year.
nary figures, 2% of GDP. As a result of
the drop in interest rates, the cost of fi-
Government Measures - Rapid
increase in inflation
nancing the deficit also decreased. On
The government adopted measures in
tax rate was lowered from 40% to 29%.
the first half of 1999 to address the
1 January 2000 the corporate income
will continue in 2000. According to
preliminary estimates, the growth in
GDP will be between 1.7% and 2%.
The high levels of unemployment will
also continue. Reducing unemployment
is dependent on long term economic
growth and a fundamental restructuring
that will impact at the micro economic
level. The Government will continue with
price deregulation, which will lead to a
further increase in the consumer price
index. The continuing economic boom
in OECD countries, which accounts for
92 to 93% of Slovakia’s exports, will
51
translate into a reduction in the trade
deficit and other current external imbalances. Higher direct foreign investment
is expected, especially after 2000. The
Government has started with the long
postponed restructuring of the economy,
including the privatisiation of the large
state-owned banks (V‰eobecná úverová
banka, Slovenská sporiteºÀa and Investiãná a rozvojová banka). These banks
are to be sold to foreign investors in
2000 or 2001. A further important
event is the possible inclusion of Slovakia in the OECD. The decision will be
taken at the end of April 2000.
Annual Report 1999
Slovak Economy in 1999
Bank Management Report
Services Offered to Clients
The introduction of the EURO also affec-
clients’ foreign trade needs in most terri-
ªUDOVÁ BANKA expanded the range
ted the Banks’activities in foreign trade
tories. As a result of trading partners re-
of services offered. Private Banking is
and international co-operation. This
quiring a higher level of certainty regar-
now available to high net worth clients.
lead to the extension and improvement
ding foreign trade, documentary paym-
A comprehensive added-value service is
in the quality of ªUDOVÁ BANKA’s net-
ents increased. The number of letters of
provided for the client.
work of correspondent banks to meet
credit increased by more than 13%.
With the aim of establishing relationships with clients from a young age, a
new product, Account for the Youth,
was introduced alongside the Children’s
Deposit Book. The product offers advantageous interest rates on personal current accounts for clients between 18
and 25 years old and has the option to
Development of Deposit during 1995 - 1999
(in SKK mill.)
1995
1996
1997
1998
1999
Total
6,233
8,448
12,139
16,386
17,580
1997
1998
18.000
obtain the EURO 26+ Youth Card or
52
the International ISIC Students card free
of charge.
12.000
ªUDOVÁ BANKA expanded card products to include, in addition to cards
from EUROPAY and VISA, the presti-
6.000
gious Diners Club International card.
The number of EUROPAY and VISA
0
cards issued increased by 21% from
1995
last year and is now in excess of
1996
1999
27,000. This trend can also be seen in
the increase in the number of EFT/POS
terminals of the Bank’s partners and the
increase in the Bank’s ATMs. The total
number of ATM transactions increased
by 55% compared to last year.
Development of Deposit during 1999
(in SKK mill.)
4.Q./98
1.Q./99
2.Q./99
3.Q./99
4.Q./99
Saving and Depositcertificats
2,756
2,877
2,920
2,779
3,121
Non-termtime
5,399
5,732
5,663
5,357
5,763
Termtime
8,231
8,330
7,769
8,408
8,696
16,386
16,939
16,352
16,544
17,580
Total
Development of the Ratio of Foreign Currency and Slovak Crown Deposits
(in SKK mill.)
4.Q./98
1.Q./99
2.Q./99
3.Q./99
4.Q./99
Deposits in SKK
10,327
10,710
10,655
10,925
11,870
Deposits in FC
6,059
6,229
5,697
5,619
5,710
16,386
16,939
16,352
16,544
17,580
Total
Bank Management Report
Deposits
Absolute increments in savings, as well
Development of Primary and Secondary Deposits
(in SKK mill.)
1995
1996
1997
1998
1999
as in current accounts and in fixed-term
Primary Deposits
6,233
8,448
12,139
16,386
17,580
accounts participated approximately in
Secondary Deposits
903
1,571
1,562
1,969
2,371
the same way in primary funds incre-
Ratio Secondary Deposits
14%
19%
13%
12%
13%
ments in the volume of SKK 1.2 billion.
The transitional drop in total deposits in
18.000
the 2nd quarter year was balanced by
just as considerable increments in deposits in the last quarter year. The Bank reached increments inflow in deposits, in
12.000
spite of considerable fall of interest rates
on deposit type of products, what was
the consequence of manifested confi-
6.000
dence from the part of clients in stability
53
of the Bank. The confidence of depositors in the Slovak currency is illustrated
0
by decreased share of foreign exchan-
1995
ge deposits in total deposits that decli-
1996
1997
1998
1999
ned from 37% at the beginning of the
year to 32.5% at the end of the year.
Development of the number of Deposits
Total
1996
1997
1998
1999
66,485
84,755
119,728
127,276
130000
104000
78000
26000
0
1996
1997
1998
1999
Annual Report 1999
52000
Bank Management Report
Credits
Development of the number of Loan accounts by the years 1995 - 1999
Loans to customers were SKK 6.4 billion
at year end. The number of loans provi-
Total
1995
1996
1997
1998
1999
895
1,358
1,647
1,730
1,746
ded increased slightly. To maintain a
healthy credit portfolio, conservative risk
1.800
policies were implemented. The Bank’s
policy was aimed at providing credit
products and improving the quality of
service provided to clients. The client
1.200
focus is on successful small and mediumsized entrepreneurs in various sectors of
the economy to ensure proper diversifi-
600
cation of credit risk. Also included in the
focus is the Top 100 Slovak companies
who will use a wide range of products
54
provided by the Bank.
0
1995
1996
1997
1998
1999
The maturity structure of the portfolio
consists of 62% short-term credits, 32%
medium-term credits and long-term credits 6%.
Volume development of the granted Loans by the years 1995 - 1999
(in SKK mill.)
1995
1996
1997
1998
1999
2,743
3,961
5,919
7,649
6,431
8.000
6.000
Strukture of Loans according
do maturity terms
as of December 31, 1999
4.000
(excluding overdrafts)
2.000
Short-term
62%
Middle-term
32%
Long-term
6%
0
1995
6%
32 %
62 %
1996
1997
1998
1999
Bank Management Report
Payments and Settlements
The crises in the market have had a limi-
Human Resources
The value and number of payments and
ted effect on the Bank, due to the stable
The Bank employed 483 people by the
settlements increased in 1999. Dome-
primary funding sources. ªUDOVÁ
end of 1999. The branch network in-
stic payments and settlements exceeded
BANKA strengthened its position in the
creased from 16 branches in 1998 to
two million which represents a 23% in-
market through active trading. Prepara-
21 branches at the beginning of 2000,
crease over the previous year. Home
tory work was done throughout the year
an increase of 16% compared to the
banking transactions increased by 34%
to ensure a proper transition with the
previous year.
of the total value of transactions. The
date change to the year 2000.
The objective of ªUDOVÁ BANKA in
the area of human resources and trai-
value of foreign payments and settlements reached SKK 45 billion during
Marketing
ning is to provide continuous education
the year.
The marketing department co-operated
and professional development to em-
in the development of new products, the
ployees through the LB-Academy.
Treasury
sale of those products and assisted in
The money market gradually stabilised
improving the quality of service provi-
during 1999, with a decrease in price
ded to clients.
volatility. The only exception was the cri-
As in the past, the Bank focused spon-
sis during May which was caused by
sorships on the health care sector. Do-
adverse movements in macro economic
nations during the year totalled SKK 2.6
indicators and the uncertainty surroun-
million.
55
ding the out-come of the presidential elections. During this period the National
Information Technology
Bank of Slovakia did not fix the BRIBOR
The main focus of the EDP department
reference rate and the short-term interest
during the year was the ”Year 2000“
rate reached 50%. The exchange rate
issue and ensuring that there was a
between the Slovak Crown and the
smooth transition for both the main and
EURO weakened to 48.20. In the se-
support information technology systems.
cond half of the year the Slovak Crown
gradually strengthened to 42.30
Other tasks during the year included:
against the EURO, at which time the
on the currency market. Trading on the
capital market stagnated over the course of 1999. In an effort to revive trading on the secondary market, the stock
• Installation of a backup computer
center,
• Upgrade of the main MIDAS information system,
• Implementation of new applications
exchange organised the so-called mar-
in the Lotus Notes environment to im-
ket makers. Currently only state bonds
prove communications and work or-
are traded.
ganisation,
• Implementation of new Homebanking
program.
Annual Report 1999
National Bank of Slovakia intervened
B a l a n c e S h e e t a s a t 31 D e c e m b e r 19 9 9
Assets (in SKK ’000)
1998
1997
498,397
377,046
450,658
1,462,236
1,058,930
1,265,920
Notes 58-60
Cash on hand
Balances with NBS
Due from banks
4
a) payable on demand
1,262,913
645,450
812,570
b) other
6,956,118
6,328,034
3,406,947
8,219,031
6,973,484
4,219,517
a) short-term
2,010,837
2,157,266
855,410
b) medium-term
2,634,577
2,376,676
2,478,945
Due from customers
4
c) long-term
d) overdrafts
Provisions for nonstandard loans
Values to be collected
Securities
5
Participations
Accruals and prepaid expenses
Tangible and intangible fixed assets
6
Other assets
Total
56
1999
440,857
523,291
555,822
1,344,402
2,591,289
2,029,264
6,430,673
7,648,522
5,919,441
-271,125
-271,626
-129,808
270
240
495
4,577,682
3,413,120
3,159,408
58,062
46,473
34,394
485,686
377,447
109,267
805,113
690,729
651,801
12,864
63,813
23,130
22,278,889
20,378,178
15,704,223
Liabilities (in SKK ’000)
Due to banks
7
a) payable on demand
b) other
Due to customers
126,261
66,983
24,630
2,245,290
1,902,300
1,537,200
2,371,551
1,969,283
1,561,830
7
a) payable on demand
5,762,915
5,399,153
4,414,356
b) term deposits
8,986,712
8,299,948
4,908,380
c) savings deposits
2,830,033
2,686,722
2,816,739
17,579,660
16,385,823
12,139,475
Accruals and deferred revenues
307,843
411,908
638,126
Other liabilities
236,302
105,187
104,194
320,274
Reserves and reserve funds
513,704
374,672
Share capital
9
670,000
670,000
670,000
Retained profits
386,289
200,279
108,715
Net profit for the year
213,540
261,026
161,609
22,278,889
20,378,178
15,704,223
Total
Prepared in using an
The accompanying notes form an integral accounting regulations. part of the financial statements.
exchange rate of USD/SKK 42,266
as at December 31, 1999
ªUDOVÁ BANKA, a. s.
Board of Directors
Karl Mayr-Kern
Chairman
Jozef Kollár
Vice-Chairman
Bratislava, 21 February 2000
Wolfgang Siller
Member
P r o f i t & L o s s A c c o u n t f o r t h e ye a r e n d e d 31 D e c e m b e r 19 9 9
Income (in SKK ’000)
1999
1998
1997
679,299
961,385
784,385
Notes 58-60
Interest and related income from banks
Interest and fees received from customers
1,277,716
1,284,465
848,773
Foreign exchange revenues
4,595,920
6,736,959
1,677,657
Income from other banking activities
384,209
300,551
93,618
Other income
273,951
172,462
129,138
7,211,095
9,455,822
3,533,571
213,273
484,637
513,557
Total
Expenses (in SKK ’000)
Fees and commissions paid to banks
16,598
16,261
13,204
1,318,688
1,264,476
725,756
4,275,966
6,448,561
1,416,665
173,363
138,477
105,482
General operating expenses
317,942
232,270
198,558
Depreciation and provisions
473,889
445,583
208,033
Other expenses
207,836
164,531
170,695
0
0
20,012
Interest and fees paid to customers
Foreign exchange expenses
Personnel expenses
3
Income tax
Net profit for the year
213,540
261,026
161,609
7,211,095
9,455,822
3,533,571
679,299
961,385
784,385
1,277,716
1,284,465
848,773
-229,871
-500,898
-526,761
-1,318,688
-1,264,476
-725,756
Net interest income
408,456
480,476
380,641
Foreign exchange income (net)
319,954
288,398
260,992
Income from securities (net)
383,898
298,576
90,782
Other operating income (net)
-168,144
-140,527
-79,794
Operating result
944,164
926,923
652,621
General and administrative expenses
-597,946
-459,357
-378,313
Increase in general loan loss provision
-125,540
-46,312
-21,426
Increase in specific provisions for loans
6,400
-155,963
-54,473
-449
54
-56
0
0
-20,012
Total
Regrouped profit and loss account for 1999, 1998 and 1997 (in SKK ’000)
Interest and related income from banks
Interest and fees received from customers
Interest and fees payable to banks
Interest and fees payable to customers
Decrease/Increase to other reserves
Income tax
Extraordinary income
Extraordinary expenses
Net Profit
These figures have been obtained from
the statutory Profit and Loss Account for
the year ended 31 December 1999,
prepared in accordance with Slovak
accounting regulations.
21 February 2000
10
4,658
4,769
55,245
-17,747
-9,088
-71,977
213,540
261,026
161,609
57
Annual Report 1999
Interest paid to banks
Notes to the Financial Statements
58
1. General Information
ªUDOVÁ BANKA, a. s. was incorporated and commenced trading in 1991.
By 31 December 1999, the Bank had
opened branches in Bratislava, Galanta,
·aºa, Nitra, Poprad, Ko‰ice, Trenãín,
Îilina, Luãenec, RuÏomberok and Banská Bystrica.
The Bank has the following principal activities:
• Maintenance of Slovak crown and foreign currency accounts
• Domestic and foreign payments
• Granting of loans
• Money market activities in Slovak crowns and foreign curencies
2. Accounting Policies
The financial statements for the year
ended 31 December 1999 were prepared in accordance with the relevant Slovak accounting regulations.
a) Accounting Records
The Bank maintains accounting records
and prepares regular financial reports in
accordance with regulations applicable
to Slovak banks.
b) Tangible and intangible fixed assets
Tangible and intangible fixed assets are
stated at acquisition cost less depreciation. Depreciation is provided using the
straight line method at rates set out in
the current provisions of § 31 of Act
286/1992 on Income Tax, with the exception of motor vehicles for which depreciation is provided using the reducing balance method at the current rate
set out in the Act.
c) Foreign currencies
Foreign currency transactions are translated to Slovak Crowns in accordance
with § 24 of Act 563/91 on Accounting
using exchange rates prevailing on the
date of the transaction quoted by the
National Bank of Slovakia („NBS”). On
31 December 1999 assets and liabilities
denominated in foreign currencies were
translated to Slovak Crowns using closing exchange rates quoted by the NBS.
d) Loans and advances
Loans and advances to customers and
banks are stated net of specific provisions. Such provisions are determined
based on the classification of such loans
and advances in accordance with the
guidelines issued by the NBS. In addition, a general reserve is made to cover
losses which are present in the loan portfolio but which have not yet been specifically identified. This reserve is calculated
in accordance with existing tax legislation.
e) Securities
Securities are stated at cost less provisions. Treasury bills are stated at nominal value. The differences between
purchase cost and redemption value are
amortized on a straight line basis to the
profit and loss account over the period
to maturity. Specific provision is made
for any diminution in value.
Notes to the Financial Statements
3. Salaries and Other Personnel Costs
Salaries and other personnel costs include: (in SKK mill.)
Salaries
Other
Social security costs
Average number of employees during the year
1999
1998
131,516
104,267
2,085
1,578
39,762
32,632
173,363
138,477
424
366
4. Loans and Advances
Loans and Advances (SKK ’000)
up to 3 m.
Due from banks
1,262,913
up to 1 y.
Term deposits
6,909,414
Total banks
8,172,327
46,704
Loans and advances to customers
2,500,462
897,687
up to 5 y.
over 5 y.
46,704
2,601,666
430,858
1999
1998
1,262,913
645,450
6,956,118
6,328,034
8,219,031
6,973,484
6,430,673
7,648,522
59
5. Securities
Securities (SKK ’000)
1999
1998
Treasury bills
1,580,000
900,000
State bonds
2,411,436
1,520,348
Other bonds
586,246
992,772
4,577,682
3,413,120
Software
Total
Total
6. Tangible and Intangible Assets
Movements during the year were as follows: (in SKK mill.)
Land and
Buildings
Office
equipment
Vehicles
1. 1. 1999
440,577
374,384
15,131
71,177
901,269
Additions
107,165
72,300
3,104
18,729
201,298
31. 12. 1999
547,742
446,684
18,235
89,906
1,102,567
1. 1. 1999
21,394
190,467
10,807
19,381
242,049
Depreciation
12,116
54,325
2,333
20,215
88,989
31. 12. 1999
33,510
244,792
13,140
39,596
331,038
1. 1. 1999
419,183
183,917
4,324
51,796
659,220
31. 12. 1999
514,232
201,892
5,095
50,310
771,529
Accumulated depreciation
Net book value
In addition at 31 December 1999 the Bank had acquired assets at a cost of Sk 33,584 million which had not yet been put into use
(1997: Sk 31,510 million).
Annual Report 1999
Cost
Notes to the Financial Statements
7. Due to Banks and Customers
Due to Banks and Customers (in SKK ’000)
up to 1 y.
up to 5 y.
over 5 y.
1999
1998
Due to banks
126,261
126,261
66,983
Term deposits
2,245,290
2,245,290
1,902,300
Total banks
2,371,551
2,371,551
1,969,283
Current accounts
5,762,915
5,762,915
5,399,153
Term deposits
7,573,621
1,250,593
162,498
8,986,712
8,299,948
Saving books
1,122,679
1,424,459
282,895
2,830,033
2,686,722
14,459,215
2,675,052
445,393
17,579,660
16,385,823
Customers
60
up to 3 m.
8. Contingent Liabilities
9. Reserves and Reserve funds
The Bank has contingent liabilities
arising from the provision of guarantees
and letters of credit totalling SKK
575 million.
a) Reserves
At 31 December 1999 there was a reserve of SKK 262 million, which was
intended to cover general risks arising
from banking activities. The reserve was
calculated in accordance with sections 5
and 8 of Act No. 610/92 on tax deductible reserves.
b) Reserve Funds
The reserve funds consist of:
Reserve Funds (in SKK mill.)
Legal
reserve
fund
Share
premium
account
Other
reserve
fund
Total
23,915
179,694
34,506
238,115
179,694
34,506
251,167
1999
1998
Assets
6,315,306
6,124,514
Liabilities
6,168,437
6,225,375
1. 1. 1999
Additions
13,052
31. 12. 1999
36,967
13,052
In accordance with the Commercial Code, Act No. 513/91, 5% of the annual profit
after taxation is transferred to the legal reserve fund. The transfer to the legal reserve
fund in respect of 1999 will be made following approval of the Annual General Meeting. The revaluation difference arising on investments denominated in foreign currency
is Sk 0,063 million.
10. Taxation
The profit before taxation for 1999 amounted to SKK 214 million. The tax computation resulted in a loss and therefore
there is no tax liability so the profit after
taxation was SKK 214 million.
11. Assets and Liabilities
in Foreign Currencies
Assets and liabilities denominated in foreign currencies included in the balance
sheet were as follows:
Assets and Liabilities in Foreign Currencies (in SKK mill.)
C a s h f l ow
(in SKK ’000)
1999
1998
213,540
261,026
-6,400
155,963
Cash flows from operating activities
Profit on ordinary activities before tax
Adjustments for:
Provision for credit losses
Reserve for general banking risks
Depreciation
Operating profit before changes in operating assets and liabilities
125,991
46,239
88,988
85,546
422,119
548,774
-628,084
-2,921,087
1,217,849
-1,729,081
(Increase)/decrease in operating assets
Due from banks
Due from customers
Other assets
Prepayments and accrued income
50,635
-44,616
-108,239
-268,180
402,268
407,453
1,193,837
4,246,348
Increase/(decrease) in operating liabilities
Due to banks
Due to customers
Other liabilities
69,876
65,483
Accruals and deferred income
-42,826
-290,708
2,577,435
14,386
Net cash flow from operating activities before income tax
Income taxes paid
Net cash flow from operating activities
0
0
2,577,435
14,386
61
Cash flows from investing activities
Purchase of participating interest
-11,589
-12,079
Purchase of tangible fixed assets
-203,372
-124,474
Fixed interest securities
-478,379
-1,363,669
Net cash flow from investing activities
-693,340
-1,500,222
(Decrease)/Increase in share capital and other capital funds
-11
79
Dividends paid
-61,965
-61,965
Net cash flow from financing activities
-61,976
-61,886
Net increase in cash and cash equivalents
1,822,119
-1,547,722
Cash and cash equivalents at the beginning of the year
2,981,426
4,529,148
Cash and cash equivalents at the end of the year
4,803,545
2,981,426
Annual Report 1999
Cash flows from financing activities
Report of the Auditors
62
Report of the Super visor y Board
The Supervisory Board of ª U D O V Á B A N K A, a. s.
at its meeting on April 13, 2000, reviewed the submitted
financial statements for the year ended December 31, 1999 and came
to the following conclusions:
Pursuant to Section 21 (3) of the Articles of Association the Supervisory Board unanimously approves
the financial statements for the financial year 1999 audited by KPMG Slovensko spol. s r.o., Bratislava.
The Board of Directors proposed, the Supervisory Board has decided to submit
to the General Assembly of ªUDOVÁ BANKA, a. s. to be held on April 13, 2000, the following
63
distribution of profits for 1999
SKK
213,540,186.94
• 5% contribution to Reserve Fund as required by Law
SKK
10,677,010.00
• Payment of dividends
SKK
61,965,000.00
SKK
140,898,176.94
ordinary shares (SKK 490,— /share)
General Management Director
Klaus Thalhammer
President of Supervisory Board
Bratislava, April 13, 2000
Annual Report 1999
preference shares (SKK 487,50 /share)
• Retained profit