PIRAEUS BANK ROMANIA S.A.
FINANCIAL STATEMENTS AS OF AND FOR
THE YEARS ENDED DECEMBER 31, 2002 AND 2001
PREPARED IN ACCORDANCE WITH
INTERNATIONAL FINANCIAL REPORTING STANDARDS
TOGETHER WITH THE REPORT OF INDEPENDENT AUDITORS
January 31, 2003
REPORT OF INDEPENDENT AUDITORS
To the Shareholders of Piraeus Bank Romania S.A.
We have audited the accompanying balance sheet of Piraeus Bank Romania S.A. (“the Bank”) as of December
31, 2002, and the related income statement, statement of cash flows and statement of changes in shareholders’
equity for the year then ended, all prepared in thousands of Euro (EUR). These financial statements are the
responsibility of the Bank’s management. Our responsibility is to express an opinion on these financial
statements based on our audit.
The financial statements of the Bank as of and for the year ended December 31, 2001 had been audited by other
auditors whose report thereon dated January 23, 2002 expressed an unqualified opinion on those statements.
We conducted our audit in accordance with International Standards on Auditing. Those Standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to in paragraph 1 above present fairly, in all material respects,
the financial position of Piraeus Bank Romania S.A. as of December 31, 2002 and the results of its operations
and its cash flows for the year then ended in accordance with International Financial Reporting Standards, as
published by the International Accounting Standards Board.
Ernst & Young SRL
January 31, 2003
Bucharest, Romania
PIRAEUS BANK ROMANIA S.A.
BALANCE SHEETS AS OF DECEMBER 31, 2002 AND 2001
(Amounts in EUR thousands, unless otherwise indicated )
December 31, December 31,
Note
2002 2001
ASSETS
Cash 4 905 473
Current accounts and deposits at banks 5 4,921 5,465
Accounts with the Central Bank 6 14,235 5,194
Treasury bills 7 9,042 7,321
Long-term bonds 8 5,782 6,240
Loans 9 66,420 31,106
Investments in equities 10 79 71
Swap asset 11 565 1,094
Tangible assets, net 12 1,878 1,765
Intangible assets, net 12 643 607
Deferred tax asset, net 16 554 308
Other assets 13 325 381
TOTAL ASSETS 105,349 60,025
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Demand deposits 14 8,870 4,445
Time deposits 15 75,351 35,462
Total deposits 84,221 39,907
Swap liability 24 85 -
Other liabilities 17 287 872
Total Liabilities 84,593 40,779
Share capital 18 22,081 22,081
Accumulated deficit (1,325) (2,835)
Total Shareholders’ Equity 20,756 19,246
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 105,349 60,025
The financial statements on pages 2 to 29 were approved by the management on January 31, 2003 and signed on its behalf
by:
Emanuel Odobescu Sofronis Strinopoulos Dimitris Kariotis
Chief Executive Officer Managing Director Finance & Administration Manager
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PIRAEUS BANK ROMANIA S.A.
INCOME STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
(Amounts in EUR thousands, unless otherwise indicated )
Year ended Year ended
Note December 31, December 31,
2002 2001
Interest income 19 6,251 4,144
Interest expense 20 (3,079) (2,314)
Net interest income 3,172 1,830
Gain on bonds 8 366 -
Loss on interest rate swaps 24 (64) -
Impairment of loans 9 (537) (134)
Impairment of tangibles 12 (106) -
Non-interest income
Commission income, net 21 1,975 664
Foreign exchange income, net 441 239
Foreign exchange translation gain/(loss) (141) 696
Other income 43 80
Total non-interest income 2,318 1,679
Income before non-interest expense 5,149 3,375
Non-interest expense
Administrative expenses 22 (3,407) (3,258)
Depreciation and amortization 12 (494) (363)
Total non-interest expense (3,901) (3,621)
Profit/(loss) before income tax 1,248 (246)
Income tax income
Income tax, deferred 16 246 347
Total income tax income 246 347
Net profit 1,494 101
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PIRAEUS BANK ROMANIA S.A.
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
(Amounts in EUR thousands, unless otherwise indicated )
December 31, December 31,
2002 2001
Cash flows from/(used in) operating activities
Net profit/(loss) before income tax 1,248 (246)
Adjustments for non-cash items:
Depreciation and amortization expense 494 363
Impairment of tangibles 106 -
Loan impairment reserve 537 134
Gain on bonds (366) -
(Gain)/loss on currency swaps 64 (16)
Provision for doubtful receivables - (62)
Total adjustments for non-cash items 835 419
Net profit adjusted for non-cash items 2,083 173
Changes in operating assets and liabilities
Compulsory reserves with the Central Bank (8,240) (3,065)
Treasury securities (1,721) (5,894)
Loans (35,830) (13,862)
Long-term bonds 824 (4,987)
Other assets 585 (1,034)
Demand and time deposits 44,314 14,528
Other liabilities (569) 680
Income tax paid - -
Total changes in operating assets and liabilities (637) (13,634)
Net cash from/(used in) operating activities 1,446 (13,461)
Cash flows from/(used in) investing activities
Acquisition of tangible and intangible assets (749) (877)
Increase in investments (8) (45)
Net cash used in investing activities (757) (922)
Cash flows from financing activities - -
Net increase/(decrease) in cash and cash equivalents 689 (14,383)
Cash and cash equivalents at beginning of period 6,250 20,633
Cash and cash equivalents at end of period 6,939 6,250
Additional information regarding cash flows:
Interest paid during the period 2,900 2,259
Interest received during the period 5,967 2,919
Cash and cash equivalents
Cash and cash equivalents 905 473
Current accounts and deposits at banks 4,921 5,465
Demand deposits with the Central Bank 1,113 312
Total cash and cash equivalents 6,939 6,250
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PIRAEUS BANK ROMANIA S.A.
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
(Amounts EUR thousands, unless otherwise indicated )
Fair value Accumulated
Share capital Total
reserve deficit
Balance as of December 31, 2000 22,081 - (2,920) 19,161
Reserve for swaps - (16) - (16)
Net profit of the year - - 101 101
Balance as of December 31, 2001 22,081 (16) (2,819) 19,246
Reserve for swaps - 16 - 16
Net profit of the year - - 1,494 1,494
Balance as of December 31, 2002 22,081 - (1,325) 20,756
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