The interim consolidated financial
statements at 30 June 2010
prepared under International
Financial Reporting Standards, as
approved by the European Union
Tatra banka, as
The interim consolidated financial statements at 30 June 2010
prepared under International Financial Reporting Standards, as
approved by the European Union
Contents Page
Consolidated summary statement of profit and loss 1
Consolidated statement of financial position 2
Consolidated statement of changes in equity 3
Consolidated statement of cash flows 4
Selected notes to the interim consolidated financial statements
I. GENERAL INFORMATION 5
II. PRINCIPAL ACCOUNTING POLICIES 10
III. SEGMENT REPORTING 22
IV. OTHER NOTES 25
Tatra banka, as
Consolidated statement of profit and loss account as at 30 June 2010
prepared under International Financial Reporting Standards, as
approved by the European Union
(In thousands of euros)
Note. 30. 6. 2010 30. 6. 2009
Interest and similar income 164 928 186 109
Interest expense and similar expenses (35 104) (69 084)
Net interest income (1) 129 824 117 025
Adjustments and provisions for losses (2) (29 951) (25 527)
Net interest income, after adjustment 99 873 91 498
Income from fees and commissions 57 325 51 603
Fees and commissions (8 421) (8 207)
Net fee and commission income (3) 48 904 43 396
Net profit (loss) from financial instruments to trading (4) 1 833 27 837
Net profit (loss) from financial instruments at fair value
(5)
revalued through the profit and loss statement 3 157 1 595
Net profit (loss) from financial instruments for sale (6) - 4
Net profit (loss) from investments in affiliated companies (7) (82) (500)
General administrative expenses (8) (102 548) (109 540)
Other operating profit (loss) (9) (3 568) 6 301
Profit before tax 47 569 60 591
Income tax (10) (12 371) (12 374)
Aggregate profit after tax 35 198 48 217
Basic and diluted earnings per ordinary share
(Nominal value € 800) in euros (11) 519 843
Basic and diluted earnings per ordinary share
(Nominal value of 4,000 euros) in euros (11) 2 593 -
Basic and diluted earnings per preferred share
(Nominal value of 4 euros) in euros (11) 3 4
The accompanying notes are an integral part of these financial statements. 1
Tatra banka, as
Consolidated statement of financial position as at 30 June 2010
prepared under International Financial Reporting Standards, as
approved by the European Union
(In thousands of euros)
Note. 30.6.2010 31.12.2009
Assets
Cash and balances with central banks (12) 264 163 165 514
Loans and current accounts to banks (13) 453 619 1 066 737
Loans to customers, gross (14) 5 449 454 5 484 549
Provisions for losses on loans (15) (193 293) (164 258)
Financial assets for trading (16) 441 313 546 227
Financial assets reported at fair value through profit
(17)
and loss statement 147 837 209 150
Financial assets held to maturity (18) 2 103 551 1 524 294
Financial assets for sale (19) 644 644
Investments in affiliated companies (20) 11 395 11 477
Intangible assets (21) 33 485 34 870
Tangible assets (21) 82 551 84 054
Current tax assets (22) 4 833 13 453
Deferred tax assets (10, 23) 15 237 13 567
Other assets (24) 22 748 23 663
Total Assets 8 837 537 9 013 941
Liabilities
Deposits and current accounts of banks (25) 54 652 103 448
Customer deposits (26) 6 798 285 6 716 322
Financial liabilities held for trading (27) 149 601 130 592
Debt securities (28) 870 700 1 069 618
Provisions for liabilities (29) 31 820 31 880
Current tax liability (30) 58 146
Deferred tax liability (31) 777 749
Other liabilities (32) 32 230 32 580
Subordinated debt (33) 120 353 120 373
Total liabilities 8 058 476 8 205 708
Shareholder´s quity (excluding profit for the current year) (34) 743 863 713 349
Aggregate profit after tax 35 198 94 884
Total equity 779 061 808 233
Liabilities and equity total
8 837 537 9 013 941
The accompanying notes are an integral part of these financial statements. 2
Tatra banka, as
Consolidated statement of changes in equity at 30 June 2010 prepared
under International Financial Reporting Standards, as approved by the
European Union
(In thousands of euros)
Fixed Share Reserve
Premium
Fixed Assets - Share - Fund Retained Aggregate
Profit After Total
Assets Own Premium Own and Other Profit
Tax
Shares Shares Funds
Equity
at 1 January 2010 54 555 (165) 152 506 (1 492) 10 457 497 488 94 884 808 233
Transfer to
retained earnings - - - - - 28 343 (28 343) -
Increase of the statutory
reserve fund - - - - 2 718 - (2 718) -
Dividend - - - - - - (63 823) (63 823)
Amortization of discount
preference shares - - 1 397 - - - - 1 397
Redemption of
Preference shares - (175) - (1 769) - - - (1 944)
Accumulated consolidated
profit after tax - - - - - - 35 198 35 198
Equity
at 30 June 2010 54 555 (340) 153 903 (3 261) 13 175 525 831 35 198 779 061
Aggregate
Fixed Share Reserve
Consolidat
Premium
ed
Fixed Assets- Share - Fund Retained-
Total
Assets Own Premium Own and Other Profit
Profit After
Shares Shares Funds
Tax
Equity
at 1 January 2009 38 318 (176) 49 012 (1 726) 10 426 435 561 131 308 662 723
Transfer to
retained earnings - - - - 31 69 784 (69 815) -
Dividend - - - - - - (61 493) (61 493)
Amortization of discount
preference shares - - 1 274 - - - - 1 274
Redemption of
preference shares - (491) - (5 244) - - - (5 735)
Increase
of equity of
parent company 7 856 (111) - 111 - (7 856) - -
Aggregate consolidated
profit after tax - - - - - - 48 217 48 217
Equity
at 30 June 2009 46 174 (778) 50 286 (6 859) 10 457 497 489 48 217 644 986
Aggregate
Fixed Share Reserve
Consolidat
Premium
ed
Fixed Assets - Share - Fund Retained-
Total
Assets Own Premium Own and Other Profit
Profit After
Shares Action Funds
Tax
Equity
at 1 January 2009 38 318 (176) 49 012 (1 726) 10 426 435 561 131 308 662 723
Transfer to
retained earnings - - - - 31 69 784 (69 815) -
Dividend - - - - - (61 493) (61 493)
Issuance of ordinary
shares 8 380 - 101 608 - - - 109 988
Sales of own
preference shares - 851 - 6 936 - - - 7 787
Amortization of discount
preference shares - - 2 572 - - - - 2 572
Loss on sale of
ordinary and
preference shares - - (686) 686 - - - -
Redemption of
Preference shares - (729) - (7 499) - - - (8 228)
Increase of
of equity of
parent company 7 857 (111) - 111 - (7 857) - -
Aggregate consolidated
profit after tax - - - - - - 94 884 94 884
Equity
31 December 2009 54 555 (165) 152 506 (1 492) 10 457 497 488 94 884 808 233
The accompanying notes are an integral part of these financial statements. 3
Tatra banka, as
Consolidated statement of cash flows at 30 June 2010 prepared under
International Financial Reporting Standards, as approved by the
European Union
(In thousands of euros)
30. 6. 2010 30. 6. 2009
Cash flows from operating activities
Profit before tax 47 569 60 591
Adjustments (Note 36): (120 611) (141 549)
Cash flows from operating activities before changes in operating
capital, interest received and paid and paid income tax
(Note 36) (73 042) (80 958)
(Increase) decrease in operating assets:
Obligatory reserve with the National Bank of Slovakia (98 663) 126 562
Loans to banks 615 697 791 555
Loans to clients 33 078 9 203
Financial assets and liabilities for trading 118 226 (152 255)
Financial assets reported at fair value through profit and loss t 62 374 158 373
Financial assets held for sale - 20
Other assets 914 (19 091)
Increase (decrease) in operating liabilities:
Deposits and current accounts of banks (48 809) (802 188)
Customer deposits 78 714 (366 267)
Debt securities (194 657) (161 620)
Other liabilities (350) (5 538)
Cash from operating activities before
interest and tax 493 482 (502 204)
Interest paid (36 123) (72 199)
Interest received 181 544 207 164
Income tax paid (5 480) (48 822)
Cash flows from operating activities, net 633 423 (416 061)
Cash flows from investing activities
(Increase of) financial assets held to maturity (680 816) (776 093)
Decrease of financial assets held to maturity 91 728 697 718
Interest received from financial assets held to maturity 34 322 33 380
Revenue from the sale or disposal of tangible and intangible
assets 5 067 892
Purchase of tangible and intangible assets (12 025) (5 827)
Proceeds from sale of a subsidiary - 12 000
Dividends received 5 6
Cash flows from investing activities, net (561 719) (37 924)
Cash flows from financing activities
(Redemption of) issue of preference shares (1 944) (5 735)
Subordinated debt - 410
Dividends paid (63 823) (61 493)
Cash flows from financing activities (65 767) (66 818)
Effect of fluctuations in exchange rates on cash and cash equivalents 2 399 258
Change in cash and cash equivalents 8 336 (520 545)
Cash and cash equivalents at beginning of year (Note 36) 105 713 691 954
Cash and cash equivalents at end of year (Note 36) 114 049 171 409
The accompanying notes are an integral part of these financial statements. 4
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
I. GENERAL INFORMATION
Business activities
Consolidated group Tatra banka (hereinafter "Group") consists of parent company Tatra banka joint stock
company (the "Bank" or "Parent"), based in Bratislava, at Hodžovo Square. 3 to 13 subsidiaries and affiliates.
The Bank was established on 17 September 1990 and registered in the Register first November 1990.
Identification number of the parent company is 00686930, tax identification number is 202 040 8522nd
The main object of the Bank, as an extract from the Commercial Register is:
acceptance of deposits,
lending,
domestic fund transfers and cross-border transfers of funds (payments
a Settlements)
provision of investment services, investment activities and ancillary services under the Act no. Act No.
566/2001 z.
o Securities and investment services and amendments to certain laws as amended to the extent:
1. reception and transmission of client orders in relation to one or more financial instruments in relation to
financial instruments:
a) transferable securities,
b) Money market instruments
c) shares or securities issued by foreign collective investment
d) options, futures, swaps, forwards and other derivative contracts relating to currencies, interest rates
or yields, which may be settled physically or in cash,
2. Execution of orders on behalf of clients in relation to financial instruments:
a) transferable securities,
b) Money market instruments
c) shares or securities issued by foreign collective investment
d) options, futures, swaps, forwards and other derivative contracts relating to currencies, interest rates
or yields, which may be settled physically or in cash,
3. trading for own account in relation to financial instruments:
a) transferable securities,
b) Money market instruments
c) shares or securities issued by foreign collective investment
d) options, futures, swaps, forwards and other derivatives related to securities, currencies, interest
rates or yields, or other derivative instruments, financial indices or financial peace that
may be settled physically or in cash,
e) options, futures, swaps, forwards and other derivative contracts relating to commodities that must
be settled in cash or may be settled in cash at the option of either Party, this does not apply to such
an alignment occurs due to insolvency or other event resulting in termination of the contract,
f) options, futures, swaps and other derivatives relating to commodities that may be settled in cash,
where they are traded on a regulated market or multilateral trading system,
g) options, futures, swaps, forwards and other derivatives not in point f), relating to commodities other
than for business purposes, have characteristics of other derivative financial instruments and are
cleared or settled through the clearing and settlement systems and subject to the usual challenges
in addition to assets
4. portfolio management in relation to financial instruments:
a) transferable securities,
b) Money market instruments
c) shares or securities issued by foreign collective investment
d) options, futures, swaps, forwards and other derivative contracts relating to currencies, interest rates
or yields, which may be settled physically or in cash,
5. investment advice in relation to financial instruments:
a) transferable securities,
b) Money market instruments
c) shares or securities issued by foreign collective investment
d) options, futures, swaps, forwards and other derivative contracts relating to currencies, interest rates
or yields, which may be settled physically or in cash,
These notes are an integral part of the financial statements. 5
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
6. underwriting and placement of financial instruments on a firm commitment in relation to financial
instruments:
a) transferable securities,
b) money market instruments,
c) shares or securities issued by foreign collective investment
7. placing of financial instruments without a firm commitment in relation to financial instruments:
a) transferable securities,
b) Money market instruments
c) shares or securities issued by foreign collective investment
8. safekeeping and administration of financial instruments on behalf of clients, including custodianship
and related services, in particular, money management and financial guarantees in relation to financial
instruments:
a) transferable securities,
b) Money market instruments
c) shares or securities issued by foreign collective investment
9. provision of loans to enable an investor to trade with one or more financial instruments, where the
lender or loan involved in the transaction;
10. advising on capital structure and business strategy, and providing advice and services relating to the
merger, conversion or divisions, or the purchase of a company
11. carry out foreign exchange transactions, are associated with the provision of investment services,
12. investment research and financial analysis or other forms of general recommendation relating to
transactions in financial instruments
13. Services related to underwriting of financial instruments and investments in securities on own account
trading for own account) in financial instruments in the euro money market and foreign currency, including
exchange activities, b) the capital market financial instruments denominated in euro and foreign currency, c)
of precious metal coins, commemorative banknotes and coins, notes and worksheets sets of circulation coins
Report claims on behalf of clients, including advisory services,
financial leasing,
providing guarantees, opening and confirming letters of credit,
issuing and administering means of payment,
providing consulting services in business,
issuance of securities, participation in the issuance of securities and providing related services,
Financial intermediation
save things
renting of safe deposit boxes,
providing banking information,
special mortgage transactions according to § 67 section. 1 of the Law on Banks
function of the depositary and
processing of banknotes, coins, commemorative banknotes and coins
trading for own account in relation to financial instruments:
options, futures, swaps, forwards and other derivatives relating to authorizations for emissions, or inflation
rates to be settled in cash or may be settled at the option of either Contracting Party, and otherwise than by
reason of insolvency or other event having result in termination.
Shareholders in the percentages of voting rights:
30. June 31. December
2010 2009
Raiffeisen International Bank - Holding AG 73.88% 73.88%
Tatra Holding GmbH 14,38 % 14,38 %
Other 11,74 % 11,74 %
Shareholders in the percentages of the subscribed capital:
30. June 31. December
2010 2009
Raiffeisen International Bank - Holding AG 65.75% 65.75%
Tatra Holding GmbH 12,80 % 12,80 %
Other 21,45 % 21,45 %
These notes are an integral part of the financial statements. 6
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Tatra Holding GmbH is part of Ostbanken Raiffeisen-Holding GmbH. The ultimate parent company of Tatra
Holding GmbH is Raiffeisenlandesbank Niederosterreich-Wien AG.
The Group operates in the Slovak Republic through 153 branches, business centers
dealerships and business centers, centers of housing investment TB and TB Center.
Ordinary shares of the parent company is publicly traded on the Stock Exchange in Bratislava.
By directors and the supervisory board of the parent company at 30 June 2010:
Supervisory Board
President: Rainer Franz
Vice-President: Herbert Stepic
Members: Peter BALÁŽ
Renate Kattinger
John NEUBAUER
Paul FEITSCHER
Reinhard KARL
Aris BOGDANERIS
Board
President: Igor VIDA
Vice-President: Miro Street
Members: Marcel Kaščák
Michal LIDA
Martin PYTLÍK
Peter Novak
Vladimir MATOUS (formation function from February 1, 2010)
Changes in the board of parent company during the year 2010:
Vladimir Matthew - the emergence of a Member of the Board first February 2010
Business name of the ultimate parent company:
Landesbanken Raiffeisen-Holding GmbH, Austria
Business name of the ultimate parent undertaking drawing up the consolidated accounts:
Raiffeisen Zentralbank Österreich AG, Austria
Business Name immediate parent company:
Raiffeisen International Bank - Holding AG, Austria
Business Name immediate parent undertaking drawing up the consolidated accounts:
Raiffeisen International Bank - Holding AG, Austria
Consolidated financial statements of Raiffeisen Zentralbank (hereinafter "RZB Group") is deposited at the
Registry Court Commercial Court Vienna, Marxergasse 1, 1030 Vienna, Austria.
RZB Group is the parent company of Raiffeisen Zentralbank and its subsidiaries and affiliates, which own
directly or indirectly through its subsidiaries.
Raiffeisen International Bank - Holding AG also prepares consolidated financial statements. Shares of Raiffeisen
International Bank - Holding AG are listed on the Stock Exchange, Vienna.
These notes are an integral part of the financial statements. 7
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Definition of the consolidated group:
At 30 June 2010 group consisted of parent companies and those companies (hereinafter referred to as "consolidated
company"):
Share Indirect holding
Direct
Company Groups through ID Main activity Consolidation method Location
share in%
in% al.
Tatra Group Services, Ltd. 99,5 % 100 % Tatra Billing, Ltd. 35 730 561 business services method of full consolidation Bratislava
Tatra Asset Management reports.
100 % 100 % n/a 35 742 968 Asset Management method of full consolidation Bratislava
al. as
Tatra Service Group, leasing and property
ELIOT, Ltd. 0,5 % 100 % 31 392 687 management method of full consolidation Bratislava
Ltd.
Tatra Service Group,
Tatra Office, Ltd. 0% 100 % 35 780 860 IT Support method of full consolidation Bratislava
Ltd.
leasing and property
Tatra Service Group, management,
Center of Living, Ltd. 0% 100 % 35 707 682 method of full consolidation Bratislava
Ltd. Administrator DDP
Tatra Billing, Ltd. 100 % 100 % n/a 35 810 572 Services method of full consolidation Bratislava
Tatra Service Group,
TL Leasing Ltd. 0% 100 % 31 398 456 leasing method of full consolidation Bratislava
Ltd.
Tatra Service Group, leasing and property
Tatra Residence, Ltd. 0% 100 % 35 805 498 management method of full consolidation Bratislava
Ltd.
Tatra-Leasing, sro 48 % 48 % n/a 31 326 552 leasing equity method Bratislava
Slovak Banking Credit Bureau, for unconsolidated
33,33 % 33,33 % n/a 35 869 810 Services Bratislava
Ltd. not significant
Dow jones supplementary pension
100 % 100 % n/a 36 291 111 method of full consolidation Bratislava
Tatra banka savings
These notes are an integral part of the financial statements. 8
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Changes in Bank Group
During the first half of 2010, there were no changes in the group of banks.
Distribution of profits of the parent company for 2009
Profit of the parent company for the year ended 31 December 2009 of EUR 90 800 thousand. euros in
accordance with International Financial Reporting Standards has been divided by a general meeting on
27 April 2010:
Dividends - ordinary shares 57 050
Dividends - preference shares 7 052
Transfer to legal reserve 2 684
Allocation to retained earnings from previous periods 24 014
Total 90 800
Accounts for 2009 and payment of royalties member Board of Supervisors approved the General Assembly
on 27 April 2010. Dividends, which not generate the date the General Assembly right of EUR 279
thousand.Euro were at 30 June 2010 charged to retained earnings from previous years.
Regulatory requirements
The Group is obliged to meet the regulatory requirements of the National Bank, which include limits and
other restrictions on the minimum capital adequacy, provisions for credit risk, security, liquidity, interest
rates and foreign exchange position of the group. Group during 2009 complied with all the regulatory
requirements.
The accompanying notes are an integral part of these financial statements. 9
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
II. PRINCIPAL ACCOUNTING POLICIES
Principal accounting policies applied in preparing these financial statements are listed below:
a) Basis of presentation
The interim consolidated financial statements ("Financial Statements") for 1 half-year ended 30 June
2010 and comparable data for 2009 and the first half-year ended 30 June 2009 has been prepared in
accordance with International Accounting Standards, as adopted by the European Union (EU).
The financial statements contain all information and disclosures required in annual financial statements
and should be read in conjunction with the annual consolidated financial statements as at 31 December
2009.
Commission Regulation no. 1126/2008 of 3 November 2008 was issued to include all the standards
presented by the International Accounting Standards Board (IASB) and all interpretations made by the
Committee on International Financial Reporting Interpretations (IFRIC), which were fully taken within
Community at 15 October 2008, with except IAS 39 (Related reporting and measurement of financial
instruments) to one whole. Regulation Commission (EC) No. 1126/2008 of 3 November 2008 replaces
Commission Regulation no. 1725/2003 of 29 September 2003.
IFRS as adopted by the EU differ from IFRS as issued by the International Accounting Standards except
for some of the requirements for hedge portfolios under IAS 39, approved by the EU. If approved, the
portfolios of hedge accounting under IAS 39, the European Union to the balance sheet date should not be
under the group accounts for a significant impact.
Adoption of new and revised standards and interpretations has not resulted in changes in accounting
policy group, which would affect the amounts reported for the current and previous period.
Goal compilation
Compilation of the interim consolidated financial statements in accordance with the Act. Act 431/2002 z.
on Accounting as amended. Group prepares unconsolidated and consolidated financial statements and
annual report under separate legislation - the European Parliament and Council Regulation (EC)
1606/2002 on the application of International Financial Reporting Standards (IFRS). The financial
statements have been prepared for general use. The information in it can not be used for any specific
purpose or assessment of individual transactions. Readers of financial statements, in deciding not to rely
on these financial statements as the sole source of information.
Basis of preparation of financial statements
The financial statements have been prepared on an accrual basis, ie the effects of transactions and other
events in group shows at the time of their creation. Transactions and other events in the financial
statements reported in the period to which they relate, provided that the Group will continue as a going
business.
The financial statements have been prepared under the historical cost valuation, some financial
instruments are revalued to fair value.
Currency used in the financial statements is the euro (EUR), and balances are in thousands of euros,
unless stated otherwise.
The accompanying notes are an integral part of these financial statements. 10
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Significant accounting estimates
The preparation of financial statements in conformity with IFRS requires the elaboration of estimates and
assumptions that
affect the reported amounts of assets and liabilities and the estimated development of active and passive
items at the date of the financial statements and the reported amounts of revenues and expenses during
the accounting period. Actual results could differ from estimates of future changes in economic
conditions, business strategies, regulatory requirements, accounting rules, respectively. other factors
may cause a change in estimates that may significantly affect the financial position and results of
operations.
Effect of changes in accounting estimates are prospectively included in profit or loss, the period in which
there is a change in the estimate, provided that the change affects only that period, or profit and the
following periods, unless the change also affects the period following.
Significant areas of subjective judgment:
The current negative trend of the economic environment has resulted in a valuation adjustment for
selected items of property groups. Vedenie group in setting prudent and reasonable valuation
estimates under such conditions took into account all relevant factors which could affect the financial
statements, valuation of assets and liabilities recognized in these financial statements, liquidity and
attract resources in the context of the present state of economic environment . Moreover, increased
level of uncertainty remains regarding the future economic development, which may result in
significant future changes in the valuation and impairment of assets.
As stated in the next section e) Section 1 and described in detail in paragraphs 2 and 15 to the
financial statements, the group maintains an allowance for impairment on loans and receivables
where there is objective evidence that past events had a negative impact on the estimated future
cash flows. These adjustments are based on past experience and current data group of loan default,
credit recovery, respectively. the time needed to be crystallized into a loss event of default, as well
as subjective judgments of management of the estimated future cash flows. Provisioning for loan
losses incurred and identified contingencies, however, includes many uncertainties regarding the
outcome of those risks and the management group requires many subjective judgments in the
estimation of losses. Given the current economic conditions may result differ from these estimates of
provisions for impairment reported at 30 júnu the 2010th
Rules and regulations of the Income Tax reported in recent years, significant changes, in relation to a
number of complex issues affecting the banking industry there is little historical precedent,
respectively. interpretive judgments. Tax authorities have broad powers in interpreting the
application of tax laws and regulations on tax audits of taxpayers. Consequently, there is a higher
degree of uncertainty about the ultimate outcome of any control by the tax authorities.
b) Principles of consolidation
Subsidiaries are companies in which the group - directly or indirectly - owns more than half of the voting
rights or otherwise its decisive impact on their business. Consolidate the full consolidation method except
those whose influence was insignificant. Subsidiaries are consolidated from the date when the Group
acquired control, consolidation and ending on the date of sale or loss of control over them. All assets and
liabilities, sales and purchases, as well as costs, revenues, profits and losses from intra-group
transactions are eliminated.
Investments in associated companies are companies in which a group of 20 - and viacpercentné shares
voting rights and applies them significant influence. Investments in associates in consolidated financial
statements are valued using the equity method. Under this method, the share initially valued at cost and
adjusted thereafter to change the investor's share of net assets of the companies in which it invests,
after the acquisition of a share. Investor's profit or loss includes its share of the profit or loss of society in
which it invests. Gains (losses) arising from revaluation of associates using the equity method are
recognized in the income statement under "Net income (loss) from investments in associated
companies".
The accompanying notes are an integral part of these financial statements. 11
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
All acquisitions of subsidiaries is accounted for by the method of acquisition costs. The cost of business
combination are measured at fair value amount of the assets at the date of exchange, acquired or
liabilities assumed and equity instruments by the Group in exchange for obtaining control over the
subsidiary, plus any costs directly associated with that business combination. If the cost of business
combination over the Group in the net fair value of identifiable assets, liabilities and contingent liabilities,
the difference is recognized as goodwill (Note j II. The accounting principles).
c) Foreign currency translation
Monetary assets and liabilities denominated in foreign currency converted to the euro group and reported
in published accounts of course the European Central Bank in force at the date of compilation taccounts.
Revenues and expenses denominated in foreign currencies are converted into euros reported in the
accounting system and group accounts rate published by the European Central Bank in forcethe
transaction date.
Foreign exchange gains (losses) from foreign currency transactions are recognized in the summary
income statement under "Net income (loss) on financial instruments for trading.
Off-balance sheet transactions in foreign currencies are converted into euro in the off group rate
published by the European Central Bank as of the balance sheet date.
Unrealized gain or loss from fixed term operations group were estimated based on the expected forward
rate using standard mathematical formula that takes into account the spot rate published by the
European Central Bank and the interest rates applicable on the balance sheet date. The listed item is
recognized in the statement of financial position under "Financial assets held for trading" or "Financial
liabilities held for trading" and the statement of the aggregate income statement under "Net income
(loss) on financial instruments held for trading".
d) Cash and balances with central banks
Cash and balances with central banks consist of cash and current account balances at the central bank,
including the reserve at the central bank.
Required reserves at the central bank is required deposits with restricted withdrawal to be maintained by
all commercial banks licensed in the Slovak Republic.
e) Government and other bills
Government and other bills are debt securities issued by National Bank of Slovakia or Ministry Finance
SlovakiaRepublicwith timematurityto 12 months. The measurement and reporting State and other
bills from the portfolio securities for trade applicable accounting principles referred to in paragraph f) 2).
Treasury bills portfolio Security securities trading are shown as "Financial assets held for trading ". To
Valuation and reporting State and other Treasury Bills of portfolio Exchange held to maturity apply
Accounting principles set out in paragraph f) 3). Cash Vouchers portfolio of securities held to maturity
are shown as "Held to maturity".
f) Financial instruments
An instrument is a contract, by giving rise to a financial asset of one entity, while a financial liability or
equity instrument of another entity.
Group in accordance with their plans for acquisitions of financial instruments in accordance with the
investment strategy distinguishes four categories of financial instruments:
1. Loans and other receivables
2. financial asset or financial liability at fair value through profit or loss,
a. financial asset or financial liability on trading
b. financial asset or financial liability at fair value through profit or loss,
3. Financial assets held to maturity,
4. sale financial assets.
The accompanying notes are an integral part of these financial statements. 12
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
1. Loans and other receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. Loans are valued at amortized cost using the effective interest method,
less provision indicating impairment.
When signing a group charged by the credit given to off-balance sheet loan commitment. Loans
accounted for in the group statement of financial position for the provision of a borrower. During the
implementation of activities, the Group contingent liabilities, which carry a credit risk. The Group
accounts for potential liabilities in off-balance and creates a reserve for these liabilities, which reflect the
risk level issued guarantees, letters of credit and unused credit limits on the balance sheet date.
Provisions for losses on loans
Adjustments are used to cover estimated losses on receivables for which there is objective evidence of
impairment. Allowance for possible losses on loans is to reduce the value of loans granted to clients to its
recoverable amount representing estimated future cash flows discounted to present value using the
original effective interest rate applicable at the inception of the loan or revalued to fair value of the
security. Allowance for losses on loans to customers are recognized in the aggregate income statement
under "Provisions for losses. If a reason for reporting the amount of adjustment or repair is not
appropriate, redundant provisions are released through the same line summary income statement.
The group consists of two types of provisions: individual and portfolio adjustments. Individual
adjustments for identified potential losses from loans are estimated considering the capacity of the
borrower to repay the loan, taking into account the debtor's financial results and accepted security.
Portfolio provisions for losses that have not been individually identified, but based on past experience, it
is clear that the balance sheet date are included in the portfolio.
Credit exposures to corporate clients are generally self-important and considered on an individual basis.
Groups access to corporate debt valuation adjustment in the event that there is reason to believe that
the claim has the appearance of seeking to claim depreciation. Such features are mainly: the delay claim,
the information that the borrower is led by large-scale enforcement proceeding, the debtor is in
bankruptcy or liquidation, if the claim relates to identified fraud, the debt was restructured because the
debtor did not have enough funds to repay claims under the original payment schedule or group on the
basis of regular monitoring of the financial situation of the client considers that the client will be unable
to repay debts in full.
Calculation of individual provisions is based on estimated future cash flows, taking into account the
delinquency of payments and income from the scheme. The provision is calculated as the difference
between reported values of loan receivable and the present value of estimated cash flows discounted at
original effective interest rate loan. Separate provision is recognized when there are objective signs of
impairment confirming the claim, the reduction occurred after the initial recognition of the loan.
Loans to corporate clients, which are not considered impaired on an individual basis, are divided into
groups with similar risk characteristics. For these loans is calculated on portfolio adjustment. Portfolio
provisions covering losses that have not yet been identified on an individual basis, but based on historical
experience contained in the individual portfolios on the balance sheet date. Adjustment depends on the
rating of the client, the historical default rate for the rating of the client, the value of the security and
recovery rate. For groups where the group has a sufficiently long time series data to calculate historical
default rate, are used in the probability of default calculated on the basis of similar groups or the RZB
Group.
Individual provisions are made for: enforcement, bankruptcy and liquidation, fraud, the debtor's death.
For the cases of group A provision is created in the full amount of the claim after taking into account the
value of the collateral.
The accompanying notes are an integral part of these financial statements. 13
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Retail claims on an individual level do not show signs of deterioration are oprávkované portfolio
provisions under the heading called. flow rate model. Portfolio provisions covering losses that have not
yet been identified on an individual basis, but based on historical experience contained in the individual
portfolios on the balance sheet date. Flow rate model (also known as roll rate model) is a model
calculation of provisions, which is based on the principle of percentage flow late claims to the saturation
state (180 days late). The claims, which are in saturation state, so the group used.vintage based
recovery rate with a maximum horizon of 36 months. Model for flow rate and also for vintage based
recovery is used for segmentation by product portfolio and their types on the basis of risk characteristics
and the calculation of flow rates used are 12-monthly average flow rate.
Group treatment approaches to valuation of retail assets in the event that the claim has the appearance
of seeking to claim depreciation. If the group identifies the characters, creates a specific provision.
The Group depreciates loans to clients for a final court decision, the board or other body of the bank
(Problem loan committee and executive committee) in terms of usage of the waiver of recovery than are
provided for. If the value of depreciable assets is higher than an impairment, depreciation is the
difference in the summary statement of profits and losses. Written off, which did not forfeit the right to
recover, are recorded in off balance sheet.
As the Group has written off loans to customers from the customer collects the additional amounts, or
obtains control secure worth more than originally estimated, revenue is reported in the aggregate profit
and loss account under "Impairment losses and provisions for losses.
Securing loans
In terms of treatment, ensuring the group attaches great importance especially for the valuation and
revaluation of each security, back-up value of the security setting, determining the admissibility of
security for the purposes of credit risk mitigation and implementation of security in case of client default.
The group is accepted, the following types of security:
financial security
guarantees
real estate
movable objects,
claims
life insurance.
The legal instruments in the group use:
lien
security assignment,
transfer of security rights,
pledge of money
contract for the purchase of securities,
agreement on the replacement obligation.
Security valuation methodology and frequency of revaluation depends on the type of minimum security
conditions and in accordance with applicable legal rules implemented in the internal guidelines of the
group. Determining the value of collaterals is specific to each type of security, while the group observes
a reasonable degree of conservatism.
Backup security value is determined individually for each type of security depending on the type of
security and transactions, depending on individual risk characteristics. Backup value Security is obtained
by discounting the original value of the security obtained in the valuation and revaluation. Factors to
thewhichthedowndiscounting factors related especially the feasibility of security in the event of
counterparty default (eg type, location and condition of the property), with any potential default provider
(eg, credit quality and maturity of financial security) and other factors (business strategy and focus
groups). Used discount factors are subject to regular review.
Claimable value of security is determined by a pledge collateral value up to a maximum current value of
the claim. If the amount of backup protection is less than the value of balance
The accompanying notes are an integral part of these financial statements. 14
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
receivables, the Group's eligible amount determined by the amount of security back-up value of the
security.
Claimable value of security includes a number of uncertainties and risks. Amounts that would be
ultimately to the liquidation of collateral on defaulted loans, could differ from estimated amounts and the
difference could be significant.
Decision-making groups in the implementation of security is individual and depends on factors such as
current status and value of collateral, the actual amount of debt, satisfaction rate, the costs of recovery
and the like. The fact that security institute will be used in a particular case, decided by the competent
authority of the group.
The group uses a particular realization of such forms of security:
Voluntary auction
enforcement proceedings
Liquidation of security claims of the bankrupt or
sale of receivables.
2. Financial asset or financial liability at fair value through profit or loss
a. Financial asset or financial liability on trade
Financial assets or liabilities on the Group acquired the trade to take advantage of short-term price
fluctuations on revenue generation. In this category group reported securities (equity and debt
securities, treasury bills, stocks) and financial derivative instruments (interest rate swaps, currency
swaps, interest rate swaps, currency forwards, forward-rate, currency options, options on indexes and
commodity derivatives).
All purchases and sales of trading securities are charged to the settlement date.
All purchases and sales of financial assets or liabilities held for trading that require delivery within the
time frame established by regulation or market convention ("regular way"), are reported as spot
transactions. Transactions that do not meet the settlement "as usual" are recognized as financial
derivatives.
Certain derivative transactions providing effective economic hedges under risk management groups do
not qualify for hedge accounting under the specific rules of IAS 39 For this reason, the accounts show as
derivatives held for trading.
Derivatives embedded in other financial instruments or other key contracts for accounting purposes
treated as separate derivatives when there is a close link between their risks and characteristics, risks
and characteristics of the host contract, and if the host contract is not measured at fair value with
changes in fair value reported in the summary statement of profits and losses.
The Group recognizes unrealized gains and losses from revaluation of these assets at fair value in the
statement of the aggregate income statement under "Net income (loss) on financial instruments for
trading. Net interest income from trading securities is accrued daily and recorded in the summary
statement of profit and loss account under "Net income (loss) on financial instruments for trading.
The fair value of derivative financial instruments for trading are discussed in the note the 44th
Refinancing costs of trading securities are recognized in the summary income statement under "Net
income (loss) on financial instruments for trading. Refinancing costs are costs necessary to refinance the
debt securities positions held in the portfolio trading.
Dividends on trading securities are recognized in the profit and loss summary
under "Net income (loss) on financial instruments for trading.
b. Financial asset or financial liability at fair value through profit or loss
Groups based on documented risk management strategy in accordance with its investment strategy has
in particular given the portfolio debt securities whose performance is monitored on a fair value basis.
Those securities group at initial recognition, designated as a financial asset
The accompanying notes are an integral part of these financial statements. 15
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
at fair value through profit and loss account.
Financial asset included in the portfolio at fair value through profit or loss are initially measured at cost,
excluding transaction costs and subsequently carried at fair value through the statement of profit and
loss summary.
The Group recognizes unrealized gains and losses from revaluation of these assets at fair value in the
statement of the aggregate income statement under "Net income (loss) on financial instruments at fair
value through profit and loss account.
Net interest income from securities at fair value through statement of the aggregate gains and losses are
accrued daily and recorded in the summary statement of profit and loss item
"Interest and similar income".
3. Financial investments held to maturity
That portfolio is a non-derivative financial assets with fixed or determinable payments and fixed maturity
that the Group intends and has the ability to hold to maturity. The portfolio held to maturity are debt
securities included in the approved strategy of creating a strategic portfolio of securities. These are the
securities issued by the State and other worthless securities.
Securities held to maturity are measured at amortized on an effective interest rate after taking into
account depreciation. Income from interest, discounts and premiums on securities held to maturity, the
daily accrued and recognized in the summary income statement under "Interest and similar income".
4. Financial assets held for sale
Portfolio of financial assets on sale of investment groups in other entities with less than 20% of the share
capital and voting rights. Portfolio assets are valued at cost less impairment losses on their value to
súhrnných recognized in the income statement under "Net income (loss) on financial instruments for
sale", because their market price in an active market can not be reliably determined.
That portfolio is primarily shares in private companies where there is no market, or companies in which
participation is obligatory (Stock Exchange in Bratislava, as, SWIFT sc, VISA Inc., USA.). For this reason,
the group uses the participation level of 3 determining fair value (see note f). V 2 quarter of 2010, there
were no changes in one or more inputs, which would affect the change in fair value of the reasons and
immateriality of the portfolio through does not publish detailed requirements for initial approval and
closing balances of the trends described separately during the period. The group is expected in the near
future participation sell or otherwise dispose of. In the case of companies against which bankruptcy
proceeding, is created 100-percent adjustment and after bankruptcy proceedings are referred to the
participation of subsequent depreciation.
Dividends from financial assets for sale are recognized in the summary income statement under "Interest
and similar income". Profit or loss on sale of financial assets for sale are recognized in the statement of
the aggregate income statement under "Net income (loss) on financial instruments for sale.
Derecognition of financial instruments
Group derecognises financial assets only expire when the contractual rights to cash flows from assets or
when it transfers the financial asset and substantially all risks and rewards of ownership of assets to
another entity. If the Group neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, has retained its share of the asset and
associated liability for amounts which may have to pay.
If the Group substantially all the risks and rewards of ownership of the transferred financial assets
retained, continues to recognize the property and also recognizes a collateralised loan proceeds received.
Group derecognises financial liabilities only when the obligations are discharged, canceled, or when they
expire.
The accompanying notes are an integral part of these financial statements. 16
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Domestic securities portfolios in the above groups are listed and traded mainly on the Stock Exchange in
Bratislava ("BCBP"), foreign securities listed on foreign stock exchanges on which the securities are
traded. Foreign securities are traded on the interbank market.
g) Fair value of financial instruments
To determine the fair value of financial instruments applies:
The fair value of the shares are down over last course of action (close price) for the trading day on
stock market. If the last day of the course is not known, then the next course
trading day declared on the stock exchange. Determining the fair value of those shares
according to IFRS 7 is a level 1 - determining the basis of quoted prices in active markets.
Fair value of shares and other equity securities of companies whose price is not
quoted in an active market and their fair value can not reliably determine the appreciates
at cost less depreciation value. Determining the fair value is defined
IFRS 7 on the Level 3 - inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
The fair value of debt securities is determined based on the last, the Exchange
published price of a security, the average quotes module makers in the Stock Market
Bratislava securities, based on prices published in Benchmark NBS or published prices
generally accepted information systems (Bloomberg, Reuters) in accordance with applicable
legislation. Determining the fair value of those debt securities under a
IFRS 7 Level 1 - assessment based on quoted prices in active markets.
The fair value of financial instruments that are not quoted in an active market is determined by
valuation techniques as the theoretical price derived from proceeds obtained from the yield curve
government securities or the swap curve and credit surcharge debt securities
issuers of comparable credit risk under the generally applicable rules of revaluation. If
the to determination fair value used valuation methods financial Tools appreciates
and regularly reviewed by qualified personnel, which is independent from their
creation.
As far as practicable, models use only observable data, however areas such as.
credit risk, liquidity and volatility, require expert estimates. Changes in assumptions related
these factors could affect the reported fair value of financial instruments.
Determining the fair value under IFRS 7 is a level 2 - determination based on active
market, but not by the prices of identical assets and
liabilities.
The fair value of treasury bills and NBS bills is determined by discounting the nominal value of the
current value of the required yield to maturity, which is the average EUR rate bid and ask to
maturity of the bill.
The fair value of derivatives on capital market, down to the last, the published Exchange price of
the derivative of the trading day. In the case of OTC derivatives, fair value is determined valuation
methods relying on discounting future cash flows to present value using a verifiable market data.
Determining the fair value of derivatives on capital market is under IFRS 7 level 2 - determination
based on an active market, but not by the prices of identical assets and liabilities.
The fair value of derivatives on the money market down to the last, the published Exchange price
of the derivative of the trading day. In the case of OTC derivatives, fair value is determined
valuation methods relying on discounting future cash flows to present value using a verifiable
market data. The fair value of options is determined using generally accepted analytical
revaluation model using verifiable market data. If the group does not provide fair value with
revaluation model may, if
it is a closed position, use the revaluation agent. In the money market derivatives used level 2 -
determination based on an active market, but not by the prices of identical assets and liabilities.
Summarizes the financial instruments reported at fair value divided by the level of determining their fair
value is given in note 47th
The accompanying notes are an integral part of these financial statements. 17
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
To determine the fair value of financial assets and liabilities used by the group the following information:
Bloomberg - the final price of the last trading day, ie "closing prices", source: BGN - Bloomberg generic
prices - where price is the price through various kontribútorov (the financial market information system
contributing to their own prices) and other relevant market information. The objective method Bloomberg
is making the real price.
Reuters - final price of the last trading day, ie "closing prices", where prices are not the final value,
conducted by an internal fixing price of 15.00.actual date of the published price kontribútormi.
BCBP - official website of the Stock Exchange, as www.bsse.sk.http://www.bsse.sk/
EBOS - BCBP electronic trading system, which provides stock market information to its members.
Where provided the fair value of financial instruments which are not revalued to fair value, is used by the
net present value using the basic interest rate published by the different currencies by central banks,
which approximates market rates. For more information on methods of calculating the fair value of
financial instruments which are not revalued to fair value, are shown in note 47
h) Sale and repurchase agreements - repotransakcie
Securities sold under sale and repurchase ("repotransakcie") in the statement of financial position
recorded as assets in "Financial assets for trading in line
"Financial assets at fair value through profit or loss" or "Financial assets held to maturity".Obligations to
a counterparty are reported under "Deposits and current accounts of banks" or "customer deposits".
Securities purchased under agreements to purchase and resell ("reverse repotransakcie") are recognized
in the statement of financial position as assets under "Loans and current accounts to banks" or "Loans
and advances to customers".
The difference between the sale and repurchase price is recognized as interest and accrued during the
contract period using the effective interest rate.
i) Tangible and intangible assets
Tangible and intangible assets are stated at cost less accumulated depreciation / amortization, together
with accumulated impairment losses. The amount of depreciation is calculated using the method of
straight-line or accelerated depreciation, the estimated useful life. Tangible investments, property and art
collections are not depreciated.
The estimated economic useful lives of tangible and intangible assets in years:
Machinery and equipment, computers, vehicles 2 – 10
Software to 10
Furniture and equipment 6 – 10
Energy apparatus 10 – 15
Optical network 30
Buildings and structures 10 – 40
j) Goodwill
Goodwill represents the excess purchase price that exceeds the fair value of identifiable assets, liabilities
and contingent liabilities of the acquiree at the date of its acquisition. Goodwill is initially recognized at
cost and subsequently, its value is adjusted for accumulated impairment losses its value. Goodwill is
tested once or more a year if events or changes in circumstances indicate that its value would be
reduced in accordance with IAS 36 - Impairment of Assets. Impairment of goodwill may not be in the
next financial year be annulled.
The accompanying notes are an integral part of these financial statements. 18
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
k) Impairment of tangible and intangible assets
The balance sheet date the group reviews the carrying value of tangible and intangible assets to
determine whether there are indications that the value of the asset is impaired. If any such indication
exists, the estimated recoverable value of the property to determine the extent of any impairment losses
its value.
Recoverable amount is the higher of the values - fair value less costs to sell or present value of future
cash flows expected to be obtained from the asset. If one of these values exceeds the carrying value, the
value should not second guess. If the estimated recoverable value of assets less than its carrying
amount, the carrying amount of the asset to its recoverable amount. An impairment loss will be reflected
directly in the summary statement of profits and losses.
l) Leasing
Leases are classified as finance lease if the lease conditions allow the transfer of substantially all the risks
and benefits flowing from ownership of a leased asset to the lessee. Any other leases are classified as
operating leases.
1. Group as lessor
Tenants' obligations under finance leases are recorded as receivables in the amount of the net
investment in leases. Finance lease income is allocated to accounting periods so as to reflect a constant
periodic rate of return on net investment group in connection with the lease.
The present value of future lease payments is recognized in the statement of financial position in line
"Loans to customers, gross" in "Receivables from finance leases.
2. Group as lessee
Assets held under finance leases are recognized as an asset group at fair value at the acquisition date or
if the fair value is lower, the present value of minimum lease payments. Relevant commitment to the
lessor is recognized in the statement of financial position as the finance lease obligation. Lease payments
are allocated between finance charges and reduction of lease liability so as to achieve a constant interest
rate on the outstanding liability amount. Financial charges are reported directly to the summary
statement of profits and losses, if not assign directly to the estate. In that case, they are able to
capitalize.
Rent on operating leases are recognized in the cost evenly over the lease term, unless there is another
method which better reflects the time period during which the consumption of economic benefits from
the subject lease. Possible future rentals under operating lease contracts are recognized in the ongoing
costs.
In the event that the group used for the conclusion of lease incentives under operating leases, such
incentives are reported in liabilities. The amount of economic benefit of incentives is recognized uniformly
as a reduction in rental costs, unless there is another method which better reflects the time period during
which the consumption of economic benefits from the subject lease.
m) Debt securities
Debt securities issued by the Group are stated at amortized cost amount at the effective interest method.
The group issued mortgage bonds and investment notes. Interest expense on the issue of securities are
recognized in the summary income statement under "Interest expense and similar charges".
n) Subordinated debt
Subordinated debt is a source of foreign groups, with demands for its payment in case of bankruptcy,
settlement or liquidation of the subordinated to the claims of other creditors. Subordinated debt groups
are reported on a separate line of the statement of financial position "Subordinated debts". Interest
expenses paid for the subsequent subordinated debt are recognized in the summary income statement
under "Interest expense and similar charges".
The accompanying notes are an integral part of these financial statements. 19
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Subordinated debt is a financial liability initially measured at fair value less transaction costs.
Subsequently measured at amortized cost based on the effective interest rate, while interest expense is
recognized based on actual revenues.
o) Cash and cash equivalents in the cash flow statement
Cash and cash equivalents for purposes of drawing up "Statement of Cash Flows" shall include cash and
current account balances at the central bank with the exception of the reserve. Under cash equivalents
understand bills, current accounts with other banks and short-term government securities.
p) Provisions for liabilities
If the group is exposed to a potential liability of legal sporov or indirect liabilities, which are the result of
a past event and it is probable that an outflow of resources will need to spend money, which results in a
reduction of resources embodying economic benefits and limit resulting loss can be reasonably estimated
, the value of reserves for liabilities is recognized as an expense and liability.Any loss relating to the
booking of reserves for liabilities in the statement of the aggregate gains and losses for the period.
q) Provisions for employee benefits
The group has long defined benefit plans, consisting of a single contribution for retirement and pay for
anniversaries. At 30 June 2010 the Group had 3,519 employees who were covered under this program
(31.12.2009: 3 521 employees).
The method of calculating the liability based on actuarial calculations that are based on a worker's age,
seniority, turnover, mortality tables and discount rates.
Employee benefits expense is estimated using the projected unit credit actuarial valuation of the balance
sheet date and are measured at present value of estimated future cash outflows discounted rate close to
the rate securities with fixed income investment grade. Actuarial gains and losses from the obligation of
compensation granted at life jubilees and the defined post-employment benefits are recognized in the
current accounting period in the summary statement of profit and loss account under "General
administrative expenses". The reserve for employee benefits are recognized in the statement of financial
position under "Provisions for liabilities".
Key assumptions used in actuarial calculations
Long-term provisions for employee benefits are calculated under the applicable mortality tables issued by
the Statistical Office of the Slovak Republic.
Real annual discount rate 4%
Future real annual wage increase 2%
The annual rate of employee turnover 8 to 21%
Retirement age Based on current legislation
The group also has a defined contribution plan for employees. All company contributions are included in
the cost (note 8).
r) Accrued Interest
Accrued interest income and expenses related to financial assets and financial liabilities are recognized on
the balance sheet date together with the assets or obligations mentioned in the statement of financial
position.
s) Recognition of income and expenses
1) Interest income, expenses and interest charges
Interest income, expenses and interest charges arising from all income instruments except the item
"financial assets or financial liabilities held for trading" is accrued in the summary statement of profit and
loss account using the effective interest rate.
The accompanying notes are an integral part of these financial statements. 20
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The effective interest rate is the rate that exactly discounts estimated future cash flows over the
estimated economic life of the financial asset or a shorter period.
Interest income from "financial assets or financial liabilities held for trading" are recognized in the
summary income statement under "Net income (loss) on financial instruments for trading.
Interest income (expense) Interest on securities includes income from coupons with fixed and floating
interest rate and amortized discount or premium.
2) Income and expenses from fees and commissions
Fees and commissions, which do not form part of the effective interest rate is recognized in income and
expenses in the income summary income statement under "Income from fees and commission income"
of financial assets and liabilities nepreceňovaných na fair value based on the time principle and the time
of the transactions.
3) Dividend income
Dividend income is recognized in the aggregate gains and losses in the moment right to receive payment
group.
t) Basic and diluted earnings per share
Group reports earnings per share attributable to holders of each class of shares. Group earnings per
share calculated by dividing the profit attributable to each class of shares weighted average number of
each class of shares that are outstanding during the period.
Profit attributable to each class of shares is based on the nominal value of each class of shares in relation
to the percentage of the total face value of all shares.
The Group has no diluted earnings per share as at 30 31st June 2010 or December 2009 were issued no
diluted potential ordinary shares.
u) Taxation and deferred tax
Income tax group calculated in accordance with regulations in force in the Slovak Republic based on
taxable profit for the year. Taxable profit differs from net profit, which is recognized in the statement of
the aggregate income statement because it excludes items of income, respectively. costs that are taxable
or deductible in other years, or items which are not taxable, respectively. deductible. Commitment to the
company for current tax is calculated using tax rates, respectively. enacted by the balance sheet date.
Deferred income taxes recognized group through the balance sheet method, for temporary differences
between tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. To
determine deferred income tax was used, the tax rate for subsequent years, ie 19%. Deferred tax
liabilities are recognized všeobecne for all taxable temporary differences, deferred tax assets are
recognized when it is probable that future taxable profit will be available, which may be deductible
temporary differences to settle.
Deferred tax assets and liabilities are settled with each other, if there is a legal right to settle current tax
assets due to tax liabilities and when they relate to income taxes levied by the same taxation authority,
the group intends to settle its current tax assets and liabilities on a net basis .
The Group has tax due from corporation tax in the statement of financial position under "Current tax
assets" or "Current tax liability" in a deferred tax item "Deferred tax assets" or "Deferred tax".
The group is the payer of various local taxes and value added tax (VAT), which are reported in aggregate
income statement under "Other operating income (loss) excluding VAT on the acquisition of tangible and
intangible assets, which enters the cost tangible and intangible assets.
The accompanying notes are an integral part of these financial statements. 21
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
III. SEGMENT REPORTING
When reporting by segments of the group applied International Accounting Standard for Financial
Reporting IFRS 8 - Operating Segments.
The basis of allocation for individual segments is provided by the principle of internal management group,
which is oriented to the client. Also reflects the principle of segmentation of the main shareholder of
Raiffeisen International. Segmentation in the group is as follows:
corporate clients
financial institutions and public sector
retail,
Treasury and Investment Banking,
equity.
A segment of corporate clients include all domestic and foreign companies, including companies that are
publicly owned. Small company, a subsidiary of a large company, is placed in the segment of corporate
clients. Corporate clients segment consisting of sub-segments of large customers and medium-sized
companies (mid market). Thanks activities tailored to client needs is a smaller company with a focus on
project financing or commercial financing is also shown in terms of corporate clients. The product terms
were provided to corporate clients in particular the investment and operating loans through overdrafts or
hire purchase, factoring and financing of documentaries, project financing commercial real estate, office
space, construction of shopping centers and others.
By segment, financial institutions and public sector include:
Bank / supranational entities include all domestic and foreign banks, including the majority of their
subsidiaries operating in the country including all institutions and, as such. World Bank, EBRD, EIB, IMF,
KfW. The product terms of asset exposure to the banks represented in particular nostro accounts and
provided Term deposits. On the liability side in particular loro accounts, term deposits and received loans
from banks.
Brokerage firms and asset management companies include foundations, all brokerage houses, mutual
funds, leasing companies, investment banks and other banks as these entities. The insurance companies
include, for example. pension funds. The following entities were provided mainly by investment and
operating loans through repayment of loans and overdrafts.
The public sector includes all state institutions, ministries, municipal authorities and so on. Businesses
that are owned by the public sector (state enterprises), are reported in the segment of corporate clients.
Securities issued by the Slovak Republic are presented in the segment of the Treasury and Investment
Banking. Banks, state-owned, are defined as financial institutions. Embassies and trade representations
are in this segment.
For retail customers are natural persons (consumers), and to all clients with incomes from lowest to
highest. A segment of retail customers ranks segment also very small businesses. In private banking
individuals defined according to local conditions, with special access to an individual manage their assets.
In terms of product to retail clients - very small businesses and tradesmen were provided mainly by the
so-called operating loans. BusinessLoanTB BusinessLoanTB Express and Comfort, corporate credit cards
(VISA Standard / Gold / Platinum, MercedesCard, AMEX, Diners Club) and others. Retail customers -
households were provided mainly by mortgage loans, equity loans, mortgage TB, Consumer úverTB
Classic, Consumer úverTB supervisor, private credit cards (VISA Standard / Gold / Platinum,
MercedesCard, AMEX, Diners Club) and others. Retail customers impose their particular funds in current
accounts and term deposits.
Investment banking and treasury transactions account for business transactions conducted on their own
account and at their own risk group, based on market risk management positions, such as. currency
exchange, securities trading and derivatives trading in the money market, liquidity management and
financing, strategic investments (investment portfolio), gapovanie interest rate (maturity
transformation).
The accompanying notes are an integral part of these financial statements. 22
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Segment reporting is based on margin contribution schemes, which are calculated as a basis for
management groups. The schemes are the revenues and costs allocated according to causal principles,
ie, revenues and expenses are allocated to each segment according to its source.
Revenue items in the statement according to customer segments are "Net interest income", "Provisions
for losses", "Income from fees and commission income", "Net income (loss) on financial instruments held
for trading", "Net profit (loss) from financial instruments at fair value through profit or loss "and" Other
operating income (loss) ".
Item "Provisions for losses" includes net creation or dissolution of the individual and portfolio
adjustments resulting from credit risk, credit write-off receivables and income from written-off credit
debt. General administrative expenses include direct and indirect costs. Direct costs (personnel costs and
other administrative costs) are assigned by individual segments and indirect costs are allocated
according to approved rates.
From the geographical point of view, operating profit is largely accounted for the provision of banking
services in the Slovak Republic. Part of the assets and liabilities were placed outside the Slovak Republic.
Overview of significant exposures, total assets and liabilities to foreign entities is referred to in footnote
37 "Foreign assets and liabilities". The group decided to not present due to immateriality of the amount
of total revenue from foreign operators.
The accompanying notes are an integral part of these financial statements. 23
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Consolidated summary statement of profits and losses and other indicators by segment at 30 June 2010:
Financial
Treasury
Business institutions Retail Property
and investment Total
participation
clients and public clients and other
banking
sector
Net interest income 32 093 1 879 93 036 327 2 489 129 824
Adjustments and provisions for losses (19 812) 707 (10 738) - (108) (29 951)
Net interest income, after adjusting 12 281 2 586 82 298 327 2 381 99 873
Net fee and commission income 9 965 31 37 009 322 1 577 48 904
Net profit (loss) from financial instruments to trading 3 455 262 3 913 (5 797) - 1 833
Net profit(loss) from financial instruments at fair value
revalued through the profit and loss statement - - - 3 157 - 3 157
Net profit(loss) on financial instruments for sale - - - - - -
Net profit (loss) from participation in affiliated companies - - - - (82) (82)
General administrative expenses (19 149) (1 357) (75 101) (6 617) (324) (102 548)
Other operating profit (loss) - - - - (3 568) (3 568)
Profit before tax 6 552 1 522 48 119 (8 608) (16) 47 569
Total Assets 2 813 057 112 723 2 566 561 3 337 898 7 298 8 837 537
Consolidated summary statement of profits and losses and other indicators by segment at 30 June 2009:
Financial
Treasury
Business institutions Retail Property
and investment Total
participation
clients and public clients and other
banking
sector
Net interest income 33 720 1 944 85 468 (3 722) (385) 117 025
Adjustments and provisions for losses (3 827) 211 (21 907) (4) (25 527)
Net interest income, after adjustment 29 893 2 155 63 561 (3 722) (389) 91 498
Net fee and commission income 1 563 168 40 225 254 1 186 43 396
Net profit(loss) from financial instruments to trading 3 260 64 4 617 19 896 - 27 837
Net profit(loss) from financial instruments at fair value
revalued through the profit and loss t - - - 1 595 - 1 595
Net profit(loss) on financial instruments for sale - - - 4 - 4
Net profit(loss) from share in subsidiaries and affiliated companies
Company - - - - (500) (500)
General administrative expenses (18 335) (1 978) (82 229) (6 685) (313) (109 540)
Other operating profit (loss) - - - - 6 301 6 301
Profit before tax 16 381 409 26 174 11 342 6 285 60 591
Total Assets 3 053 521 172 527 2 550 694 3 181 762 104 259 9 062 763
The accompanying notes are an integral part of these financial statements. 24
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
IV. OTHER NOTES
1. Net interest income
30.6.2010 30.6.2009
Interest and similar income: 164 928 186 109
of loans and current accounts to banks 6 129 15 250
of loans and current accounts provided by central banks 739 3 024
of loans to customers 130 569 149 028
of receivables from financial leasing 347 349
of financial assets held to maturity 24 491 14 470
of financial assets reported at fair value through profit and loss 3 387 7 006
of dividends received from financial assets available for sale 5 6
Interest expense and similar expenses: (35 104) (69 084)
on deposits and current accounts of banks (276) (2 774)
on deposits and current accounts of central banks - (1)
on customer deposits (16 658) (41 870)
on subordinated debt (1 519) (2 493)
the obligations of debt securities issued by group (16 651) (21 947)
Net interest income 129 824 117 025
2. Adjustments and provisions for losses
Movement of provisions for loan loss recognized in the statement of financial position and reserves made
up of off-balance sheet commitments:
30.6.2010 30.6.2009
Individual loan loss provisions (20 434) (25 659)
Creation of loan loss provisions (48 559) (40 948)
Release of loan loss provisions 28 361 15 425
Write off of loans (314) (235)
Income from written-off loans 78 99
Portfolio loan loss provisions (9 004) (5 592)
Creation of loan loss provision (9 541) (9 647)
Release of loan loss provisions 537 4 055
Individual provisions to off-balance sheet items 871 3 251
Creation of provisions (2 095) (3 901)
Release of provisions 2 966 7 152
Portfolio provisions to off-balance sheet items (1 384) 2 473
Creation of provisions (1 384) -
Release of provisions - 2 473
Total (29 951) (25 527)
For more information on the allowances for loan losses are the in Note 15 information
made up of reserves to off-balance sheet commitments are set out in note 29th
The accompanying notes are an integral part of these financial statements. 25
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
3. Net fee and commission income
30. 6. 2010 30. 6. 2009
Income from fees and commissions 57 325 51 603
of bank transfers 34 988 32 728
management fees from loans and guarantees 8 038 6 478
from securities transactions 1 699 1 500
of activities relating to the management of investment and pension funds 9 613 8 459
of activities relating to the mediation of third parties 1 933 1 884
for other banking services 1 054 554
Fees and commissions expenses (8 421) (8 207)
of bank transfers (7 430) (7 020)
management fees from loans and guarantees (253) (404)
from securities transactions (148) (107)
of activities relating to the management of investment and pension funds (286) (224)
of other banking services (304) (452)
Net fee and commission income 48 904 43 396
4. Net profit (loss) from financial instruments to trading
30.6.2010 30.6.2009
Securities 5 248 2 943
interest income, net 4 179 4 664
revaluation at fair value 1 692 (85)
profit (loss) from sale of securities 80 23
refinancing costs (708) (1 659)
dividends 5 -
Interest trading (11 512) 17 991
interest income (expenses), net (6 759) (19 048)
realized profit (loss) from derivatives 157 -
revaluation at fair value (4 910) 37 039
Currency trades (806) 7 095
Profit (loss) from derivatives (844) 7 093
realized profit(loss) from derivatives (4 941) 21 027
revaluation at fair value 4 097 (13 934)
Exchange rate differences on trading securities 38 2
Indices trading (119) 1 125
Securities 5 105
revaluation at fair value 5 122
profit(loss) from sale of securities - (17)
Profit (loss) from derivatives (124) 1 020
realized profit(loss) from derivatives (59) 5
revaluation at fair value (65) 1 015
Commodity trading 6 16
Profit (loss) from derivatives 6 16
realized profit(loss) from derivatives 2 87
revaluation at fair value 4 (71)
Exchange differences 9 016 (1 333)
Exchange differences 9 016 (1 333)
Total 1 833 27 837
The accompanying notes are an integral part of these financial statements. 26
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Net profit (loss) from financial instruments at fairvaluerevaluedthrough profit and loss
5. statement
30.6.2010 30.6.2009
Interest trading 3 157 1 595
Securities 3 157 1 595
profit(loss) from sale of securities 1 2 297
revaluation at fair value 3 156 (702)
6. Net profit(loss) on financial instruments for sale
30.6.2010 30.6.2009
Income from the sale of financial instruments - 4
Total - 4
7. Net income (loss) from investments in affiliated companies
30.6.2010 30.6.2009
The shares in affiliated companies (82) (500)
Total (82) (500)
8. General administrative expenses
The general administrative costs of the group are reported personnel costs, other general expenses,
depreciation and amortization of tangible and intangible assets in the following structure:
30.6.2010 30.6.2009
Personnel costs (51 765) (54 011)
Wages and salaries (39 668) (41 062)
Social security costs (10 874) (11 628)
Other social costs (1 309) (1 391)
(Creation) dissolution of provisions for anniversaries and other loyalty
benefits 86 70
Other administrative costs (41 294) (45 386)
The cost of co-location (8 620) (8 901)
Information technology costs (8 233) (10 911)
Communication costs (3 244) (3 897)
The cost of legal services (5 269) (5 919)
The cost of advertising and entertainment (4 722) (4 691)
Deposit Protection Fund (3 701) (3 601)
Consumption of office supplies (1 312) (1 296)
Costs of transporting and processing cash (311) (429)
Travel costs (754) (891)
Training costs for employees (769) (734)
Other costs (4 359) (4 116)
Depreciation and amortization of tangible and intangible assets (9 489) (10 143)
Tangible assets (6 403) (7 348)
Intangible assets (3 086) (2 795)
Total (102 548) (109 540)
The Group has no other pension scheme in addition to the obligatory state pension. Under Slovak law,
the employer is obliged to pay contributions to social insurance, health insurance, health insurance,
accident insurance, unemployment insurance and to the guarantee fund as a percentage of the tax base.
Those costs are reported in aggregate gains and losses in the period for which the employee was entitled
to a wage.
Group within a defined contribution plan, contributes to a supplementary pension plan administered by
private pension fund, employee tenure. The Group incurs no obligations from the payment of pensions to
employees in the future. The cost of supplementary pension plan as at 30 June 2010 amounted to 400
thousand. Euro (30.6.2009: 376 thousand. euros).
The accompanying notes are an integral part of these financial statements. 27
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
9. Other operating profit (loss)
In other operating gains (losses) are recognized income and expenses from non-banking activities, the
sale of tangible and intangible assets and VAT which the group can not be applied:
30. 6. 2010 30. 6. 2009
Profit from sale of shares in subsidiary - 11 489
Income from non-banking activities 9 324 2 826
Income from release of provisions for litigation 996 -
Income from disposal of tangible and intangible assets 5 067 892
Other income from non-banking activities 3 261 1 934
The cost of non-bank activity (13 002) (8 059)
Other taxes (7 071) (6 297)
Additions to reserves for litigation (507) (532)
Disposal of tangible and intangible assets (5 424) (1 230)
Other operating income 1 113 774
Other operating expenses (1 003) (729)
Total (3 568) 6 301
10. Income tax
30.6.2010 30.6.2009
Current tax expense (14 014) (19 290)
Deferred tax income 1 643 6 916
Total (12 371) (12 374)
Legal persons in the Slovak Republic are obliged to grant taxable income and pay from taxable income of
the local tax office tax on corporate income. In 2010, for legal persons is valid 19-percent (2009: 19-
percent) income tax rate.
Deferred tax assets and liabilities at 30 June2010and 31December 2009relatedwith these
items:
Accounti Tempora
ng Tax ry 30.6.2010 31.12.2009
differen
Value value ce
Deferred tax assets:
Loans to clients
(After provision
for losses of
impairment) 5 256 161 5 447 417 192 627 36 599 31 099
Other assets 22 748 23 765 359 68 33
Provisions for liabilities 31 820 - 8 394 1 595 1 662
Other liabilities 32 230 23 272 9 328 1 772 2 609
Total 40 034 35 403
Deferred tax liabilities:
Tangible assets 82 551 66 598 15 953 (3 031) (3 200)
Total (3 031) (3 200)
Deferred tax
receivable/ (liabilities), net 37 003 32 203
Modification of the uncertain realization of
deferred
tax receivable (22 543) (19 385)
Deferred tax
receivable/ (liabilities), net 14 460 12 818
At 30 June 2010 a group of unrecognized deferred tax assets of EUR 22 543 thousand. EUR (31.12.2009:
19 385 thousand. euros), which mainly relates to deductible temporary differences arising from
provisions and reserves for the uncertain timing and implementation in future periods.
The accompanying notes are an integral part of these financial statements. 28
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
11. Earnings per share
Ordinary Ordinary Preference
30.6.2010
shares shares * shares
Nominal Nominal
value value
€ 800 EUR 4 000
Profit after tax for the year attributable to: 26 039 5 432 3 727
Weighted average number of shares outstanding during the period 50 216 2 095 1 437 672
Earnings per share 519 2 593 3
* Parent Company during 2009 raised the capital subscription of new ordinary shares.
Ordinary Preference
30.6.2009
shares shares
Nominal
value
€ 800
Profit after tax for the year attributable to: Weighted 42 320 5 897
average number of shares outstanding during the period 50 216 1 399 504
Earnings per share 843 4
Method and methodology for calculating earnings per share is disclosed in note II.t).
12. Cash and balances with central banks
30.6.2010 31.12.2009
Petty cash 71 216 71 230
Deposits at central bank 192 947 94 284
Required reserves 192 947 94 284
Total 264 163 165 514
Required reserves are reported as interest-bearing deposits in accordance with the National Bank of
Slovakia. The amount of reserves depends on the volume of deposits taken by the group. The ability of
the reserve is drawn in terms of legislation is limited. For that reason, it is reported in "Cash and
balances with central banks" for purposes of compiling the statement of cash flows (see note 36).
13. Loans and current accounts to banks
30.6.2010 31.12.2009
Current accounts and interbank settlement 44 202 40 680
Money market operations 393 918 1 011 487
Other loans and receivables to banks 15 499 14 570
Total 453 619 1 066 737
Geographical breakdown of loans and current accounts to banks:
30.6.2010 31.12.2009
Slovak Republic 43 023 184 307
Other States 410 596 882 430
Total 453 619 1 066 737
The accompanying notes are an integral part of these financial statements. 29
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
14. Loans to customers, gross
Loans to customers are:
30.6.2010 31.12.2009
Overdrafts 857 045 792 881
Receivables from credit cards 84 493 89 401
Factoring and loans backed bills 69 859 65 401
Home loans 423 428 281 688
Mortgage Loans 917 907 1 048 740
American Mortgage 343 013 343 304
Receivables from finance leases 21 256 22 607
Consumer loans 198 091 193 797
Investment, operating and other loans 2 534 362 2 646 730
Total 5 449 454 5 484 549
At 30 June 2010 the total value of syndicated loans, coordinated by the group, 248 055 thousand. million
(December 31, 2009: 232 120 thousand. euros). The Group's share amounted to 109 419 thousand.
million (December 31, 2009: 101 336 thousand. euros). Syndicated loans are included under the heading
"Investment, operating and other loans.
Breakdown of loans by client group:
30.6.2010 31.12.2009
Public Sector 12 382 12 948
Corporate Accounts 3 175 754 3 251 627
Retail clients 2 261 318 2 219 974
Total 5 449 454 5 484 549
Breakdown of loans by contractual
maturity:
30.6.2010 31.12.2009
Short-term loans (up to 1
year) 1 610 114 1 564 447
Medium-term loans (1-5 years) 875 443 949 984
Long-term loans (over 5
years) 2 963 897 2 970 118
Total 5 449 454 5 484 549
Geographical breakdown of loans to customers:
30.6.2010 31.12.2009
Slovak Republic 5 325 162 5 364 980
Other States 124 292 119 569
Total 5 449 454 5 484 549
15. Loan loss provisions
Movements in loan loss provisions at 30 June 2010:
Dissolutio
Transfers,
At 1 January n At 30 June
Creatio
n Use exchange
2010 2010
difference
s
Individual adjustment
item 137 696 48 559 (28 361) (178) 11 157 727
Public Sector 3 109 (3) - - 109
Corporate clients 90 493 34 142 (21 020) (104) 9 103 520
Retail clients 47 200 14 308 (7 338) (74) 2 54 098
Collateral adjustment
item 26 562 9 541 (537) - - 35 566
Corporate clients 9 260 9 229 - - - 18 489
Retail clients 17 302 312 (537) - - 17 077
Total 164 258 58 100 (28 898) (178) 11 193 293
The accompanying notes are an integral part of these financial statements. 30
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Movements in loan loss provisions at 30 June 2009:
Dissoluti
Transfers,
At 1 January on At 30 June
Creatio
n Use exchange
2009 2009
difference
s
Individual adjustment
Item 81 852 40 948 (15 425) (122) 13 107 266
Corporate clients 55 166 29 243 (12 579) (2) 11 71 839
Retail clients 26 686 11 705 (2 846) (120) 2 35 427
Collateral provision
item 26 818 9 647 (4 055) - - 32 410
Corporate Accounts 15 973 - (4 055) - - 11 918
Retail clients 10 845 9 647 - - - 20 492
Total 108 670 50 595 (19 480) (122) 13 139 676
16. Financial assets for trading
30.6.2010 31.12.2009
Debt securities and other securities with fixed yield 261 482 376 247
Treasury bills 109 656 -
Government bonds 151 762 376 181
Bonds issued by other sectors 64 66
Shares, debt and other securities with
variable-yield 24 251 24 990
Shares 48 93
Government bonds 24 070 24 201
Other securities with variable yield - 330
Units of Mutual Funds 133 366
Positive fair value of financial derivatives 155 580 144 990
Interest trading 124 011 119 500
Currency trades 29 428 23 031
Indices trading 2 127 2 445
Commodity trading 14 14
Financial assets for trading, total 441 313 546 227
17. Financial assets at fair value revalued through profit and loss statement
30.6.2010 31.12.2009
Debt securities and other securities with fixed yield 133 697 195 837
Government bonds 117 235 178 677
Bonds issued by the banking sector 658 661
Bonds issued by other sectors 15 804 16 499
Shares, debt and other securities with
variable-yield 14 140 13 313
Bonds issued by other sectors 14 140 13 313
Total 147 837 209 150
The accompanying notes are an integral part of these financial statements. 31
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
18. Financial assets held to maturity
30.6.2010 31.12.2009
Debt securities and other securities with fixed yield 1 930 227 1 334 767
Treasury bills 578 991 228 741
Government bonds 1 286 559 1 041 124
Bonds issued by the banking sector 64 677 64 902
Shares, debt and other securities
variable-yield 173 324 189 527
Government bonds 121 660 121 339
Bonds issued by the banking sector 51 664 68 188
Total 2 103 551 1 524 294
19. Financial assets for sale
Group Adjustme Accounting Accounting value
Title share Acquisition nt value at 30 at 31 December
(In%) price item June 2010 2009
RVS, a.s. 0,68 46 (46) - -
Bratislava Stock Exchange
s.c.
0,09 10 - 10 10
SWIFT s.c., Belgium 0,03 73 - 73 73
International Factors Group s.c.
Belgium 0,70 9 - 9 9
D. Trust Certification Authority 10,00 37 - 37 37
VISA Inc., USA. 0,07 515 - 515 515
SLOVAKIA INDUSTRIES s.c.
Banska Bystrica N/A 48 (48) - -
Total 738 (94) 644 644
Movements in provisionsfor financial assets for sale:
30.6.2010 31.12.2009
At 1 January 94 94
Dissolution - -
Total 94 94
20. Investments in affiliated companies
30.6.2010 31.12.2009
1. January 11 477 12 929
Share of profit of affiliated companies after taxation (note 7) (82) (1 212)
Elimination of dividends
received - (240)
11 395 11 477
Share on
net asset Share on net
value asset value
Acqui Adjustme
Property sition nt Bookvalue
Affiliated Company
share in% price item
to 30.6.2010 31.12.2009
Tatra-Leasing, Ltd. 48,00 % 3 187 - 3 187 11 392 11 474
Slovak Banking Credit
Bureau, Ltd. 33,33 % 3 - 3 3 3
3 190 - 3 190 11 395 11 477
The accompanying notes are an integral part of these financial statements. 32
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Basic financial information for affiliate Tatra-Leasing, sro, Bratislava:
30.6.2010 31.12.2009
Total Assets 345 148 372 914
Total liabilities 321 414 349 010
Net assets 23 734 23 904
The Group's share of net assets 11 392 11 474
30.6.2010 30.6.2009
Interest and similar income 10 413 13 296
Profit (loss) after tax (170) (1 041)
The Group's share of profit (loss) after tax (82) (500)
21. Status and movement of tangible and intangible assets
The movements of fixed assets at 30 June 2010:
Lands Machinery Other Means Incomplete
intangible Total
and and investment
buildings equipment assets of transport s
Acquisition price
1. January 2010 67 542 108 220 31 512 8 794 6 619 222 687
Additions - - - - 10 323 10 323
Disposals (9 440) (2 952) (1 232) (771) - (14 395)
Transfer of incomplete tangible
investments 3 254 4 171 354 568 (8 347) -
30. June 2010 61 356 109 439 30 634 8 591 8 595 218 615
Adjustments
1. January 2010 (21 667) (89 039) (23 071) (4 856) - (138 633)
Depreciation (1 115) (3 791) (660) (837) - (6 403)
Disposals 4 266 2 916 1 179 611 - 8 972
30. June 2010 (18 516) (89 914) (22 552) (5 082) - (136 064)
The book value of 1.1 2010 45 875 19 181 8 441 3 938 6 619 84 054
Net book value 30.6 2010 42 840 19 525 8 082 3 509 8 595 82 551
The movements of tangible
assets at 30 June 2009:
Lands Machinery Other Means
and and Incomplete
buildings equipment intangible of transport Total
investment
assets s
Acquisition price
1. January 2009 68 977 109 821 32 387 9 436 3 407 224 028
Additions - - - - 4 854 4 854
Disposals (1 581) (4 050) (490) (344) - (6 465)
Transfer of uncompleted tangible
investments 672 1 511 144 234 (2 561) -
30. June 2009 68 068 107 282 32 041 9 326 5 700 222 417
Depreciation
1. January 2009 (19 749) (88 170) (23 238) (3 722) - (134 879)
Depreciation (1 271) (4 141) (901) (1 035) - (7 348)
Disposals 182 3 300 460 229 - 4 171
30. June 2009 (20 838) (89 011) (23 679) (4 528) - (138 056)
Net book value 1 1. 2009 49 228 21 651 9 149 5 714 3 407 89 149
Net book value 30th 6. 2009 47 230 18 271 8 362 4 798 5 700 84 361
The accompanying notes are an integral part of these financial statements. 33
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The movements of intangible assets at 30 June 2010:
Incomplete
Software Goodwill intangible Total
investment
s
Acquisition price
1. January 2009 72 572 10 122 3 793 86 487
Additions - - 1 704 1 704
Disposals (3) - - (3)
Transfer of uncompleted intangible investments 2 284 - (2 284) -
30. June 2009 74 853 10 122 3 213 88 188
Depreciation
1. January 2009 (50 515) (1 102) - (51 617)
Depreciation (3 086) - - (3 086)
Disposals - - - -
30. June 2009 (53 601) (1 102) - (54 703)
Net book value 1 1. 2009 22 057 9 020 3 793 34 870
Net book value 30th 6. 2009 21 252 9 020 3 213 33 485
The movements of intangible assets at 30 June 2009:
Incomplete
Software Goodwill intangible Total
investment
s
Acquisition price
1. January 2009 81 674 10 122 1 502 93 298
Additions - - 966 966
Disposals (12 958) - - (12 958)
Transfer of uncompleted intangible investments 909 - (909) -
30. June 2009 69 625 10 122 1 559 81 306
Depreciation
1. January 2009 (57 423) (1 102) - (58 525)
Depreciation (2 795) - - (2 795)
Disposals 12 521 - - 12 521
30. June 2009 (47 697) (1 102) - (48 799)
Net book value 1 1. 2009 24 251 9 020 1 502 34 773
Net book value 30th 6. 2009 21 928 9 020 1 559 32 507
22. Current tax assets
30.6.2010 31.12.2009
Tax asset – current 4 833 13 453
Current tax assets total 4 833 13 453
23. Deferred tax assets
30.6.2010 31.12.2009
Tax asset - deferred 15 237 13 567
Total deferred tax assets 15 237 13 567
Net deferred tax assets from tax revenues resulted mainly from deductible temporary differences
described in footnote 10
The accompanying notes are an integral part of these financial statements. 34
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
24. Other assets
30.6.2010 31.12.2009
Prepayments and accruals 6 867 6 312
Other receivables from the state budget 408 1 153
Values in transit 8 656 9 223
Other assets 6 817 6 975
Total 22 748 23 663
Under "The road" group has a claim against a company that provides services associated with the use of
ATMs and the transportation of cash.
25. Deposits and current accounts of banks
30.6.2010 31.12.2009
Current accounts and interbank settlement 9 682 37 727
Money market operations 273 30 376
Loans received 44 697 35 345
Total 54 652 103 448
Deposits and current accounts of banks with geographical
breakdown:
30.6.2010 31.12.2009
Slovak Republic 5 476 29 749
Other countries 49 176 73 699
Total 54 652 103 448
Loans received broken down by type of banks:
Type of loan
Contracting
Curren 30.6.2010 31.12.2009
maturity
Type of loan cy by
maturity
Loans from banks: June 2014 2 099 2 600
- Commercial banks EUR Long-term May 2020 16 673 17 507
- Bank for Reconstruction and March 2016 25 925 15 238
Development EUR Long-term 44 697 35 345
- Bank for Reconstruction and
Development EUR Long-term
Total
At 30 June 2010 is part of the loans from banks secured by government bonds, the Slovak Republic
included in the portfolios of securities in the amount of 33 424 thousand. euros for the following entities
(in thous. EUR):
Debt securities
accounting value
Date of
Accounting value termination In favour of
Title of
credit received
guarantee
Bank for Reconstruction
Government bond EUR 33 424 16 673 22. 1. 2013 and Development
31 December 2009 is part of the loans from banks secured by government bonds, the Slovak Republic
included in the portfolios of securities in the amount of 33 793 thousand. euros for the following entities
(in thous. EUR):
Debt securities
sccounting value
Date of
Accountingvalue termination
Title of
credit received In favour of
guarantee
Bank for Reconstruction
Government bond EUR 33 793 17 507 22. 1. 2013 and Development
The accompanying notes are an integral part of these financial statements. 35
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
26. Client deposits
Client deposits by groups of products:
30.6.2010 31.12.2009
Current accounts 3 840 491 3 842 948
Time deposits 2 614 481 2 468 129
Savings accounts 304 512 371 515
Loans received 38 801 33 730
Total 6 798 285 6 716 322
Breakdown of deposits by a group of clients:
30.6.2010 31.12.2009
Public sector 342 968 190 352
Corporate clients 2 345 238 2 499 379
Retail clients 4 110 079 4 026 591
Total 6 798 285 6 716 322
Client deposits by geographical breakdown:
30.6.2010 31.12.2009
Slovak Republic 6 615 211 6 420 598
Other countries 183 074 295 724
Total 6 798 285 6 716 322
Loans received broken down by individual clients:
Type of loan
Contracting
Type of loan Currency by 30.6.2010 31.12.2009
maturity
maturity
Loans received from clients:
- Other financial institutions EUR Long- April 2016 38 801 33 730
Total 38 801 33 730
27. Financial liabilities held for trading
30.6.2010 31.12.2009
Negative fair value of derivatives
Interest trading 120 317 110 896
Currency trading 27 073 17 227
Indices trading 2 202 2 455
Commodity trading 9 14
Total 149 601 130 592
28. Debt securities
30.6.2010 31.12.2009
Debt securities issued - mortgage bonds 825 263 1 035 816
Debt securities issued - bonds 45 437 33 802
Total 870 700 1 069 618
The accompanying notes are an integral part of these financial statements. 36
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The group issued mortgage bonds with the following conditions:
Number Nominal Frequency of 30.6.2010 31.12.2009
Date of Date of
coupon
Title Interest. rate Currency issued value of 1 pc of payments
emission maturity
mortgage
bonds in mortgage bond
pieces in currency
MB II 5,50 % EUR 9 890 3 319 17. 12. 2002 17. 12. 2012 Year 34 153 33 322
MB III 6,00 % EUR paid 3 319 11. 3. 2003 11. 3. 2010 Year - 15 143
In MB 5,00 % EUR 10 000 3 319 21. 5. 2003 21. 5. 2013 Year 33 643 34 519
HZL XII 2,90 % EUR 995 33 194 15. 11. 2005 15. 11. 2010 Year 33 588 33 059
MB XIII 12M EURIBOR EUR 1 000 33 194 21. 11. 2005 21. 11. 2010 Year 33 438 33 231
HZL XVII 6M EURIBOR 0.08% EUR 650 33 194 24. 11. 2006 24. 11. 2011 Half-yearly 21 599 21 599
HZL XXII 4,6 % EUR 500 33 194 25. 6. 2007 25. 6. 2012 Year 16 607 16 992
HZL XXIII 0% EUR 2 023 3 319 1. 8. 2007 30. 7. 2010 - 6 720 7 047
HZL XXV 4,6 % EUR 10 000 3 319 18. 10. 2007 18. 10. 2010 Year 34 269 33 491
HZL XXVI 0% EUR 4 336 3 319 31. 10. 2007 29. 10. 2010 - 14 241 14 826
HZL XXVIII 3M EURIBOR 0.30% EUR paid 100 000 31. 1. 2008 31. 1. 2010 Quarterly - 100 127
HZL XXIX 4,25 % EUR paid 3 319 20. 2. 2008 20. 2. 2010 Year - 16 052
XXX MB 4,30 % EUR 7 497 3 319 25. 2. 2008 25. 2. 2013 Year 25 576 8 354
HZL XXXIII 4,75 % EUR paid 1 000 000 27. 5. 2008 27. 5. 2010 Year - 205 753
HZL XXXIV 4,60 % EUR 4 900 3 319 18. 6. 2008 18. 6. 2011 Year 16 261 16 621
HZL XXXV 0% EUR 22 850 950 31. 10. 2008 31. 10. 2012 - 19 148 18 722
HZL XXXVI 3M EURIBOR 0.70% EUR 1 000 66 388 30. 7. 2008 30. 7. 2010 Quarterly 66 539 66 551
HZL XXXVII 6M EURIBOR 0.20% EUR 200 66 388 30. 7. 2008 30. 7. 2011 Half-yearly 13 343 13 355
HZL XXXVIII 5,70 % EUR 4 745 3 319 11. 8. 2008 11. 8. 2010 Year 16 556 16 105
HZL XXXIX 3M EURIBOR 0.20% EUR 100 1 000 000 18. 8. 2008 18. 8. 2010 Quarterly 100 017 99 685
MB XL 3M EURIBOR 0.30% EUR 50 1 000 000 18. 8. 2008 18. 8. 2011 Quarterly 49 656 49 481
HZL XLI 5,50 % EUR 350 66 388 20. 8. 2008 20. 8. 2011 Year 24 409 23 792
HZL XLII 5,70 % EUR 3 104 3 319 17. 9. 2008 17. 9. 2010 Year 10 770 10 542
HZL XLV 5,33 % EUR paid 3 319 27. 11. 2008 7. 5. 2010 Year - 16 649
HZL XLVI 4,05 % EUR 16 000 1 000 27.2.2009 27.2.2012 Year 16 337 9 378
HZL XLVII 5,01% EUR 24 810 1 000 1.7.2009 1.7.2014 Year 26 067 25 442
HZL XLVIII 3M EURIBOR 1.40% EUR 70 000 1 000 14.8.2009 14.8.2011 Quarterly 70 190 70 193
HZL XLIX 3,6% EUR 395 50 000 28.9.2009 28.3.2013 Year 20 231 19 919
MB L 0% EUR 10 000 1 000 19.11.2009 19.11.2013 - 8 787 5 866
HZL LI 3,7 % EUR 340 50 000 1.2.2010 1.8.2013 Year 17 257 -
HZL LII 3M EURIBOR 1.30% EUR 200 100 000 3.2.2010 3.2.2013 Quarterly 20 063 -
Once
053 MB Inflation - CPTFEMU EUR 1 000 10 000 30.4.2010 30.4.2015 to date
maturity 10 055 -
054 MB 3,60% EUR 40 698 1 000 28.6.2010 28.06.2015 Year 40 710 -
055 MB 3M EURIBOR 0.90% EUR 2 500 10 000 1.6.2010 1.6.2012 Quarterly 25 033 -
Total mortgage
bonds 825 263 1 035 816
These notes are an integral part of the financial statements. 37
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The Group also issued other debt securities with the following conditions:
Number of Nominal 30.6.2010 31.12.2009
issued value of 1 pc of Frequency of
Date of Date of
coupon
Title Interest. rate Currency security payments
emission maturity
securities in paper
Pc in currency
DLHOPIS II 0% EUR 7 916 1 000 19. 11. 2009 19. 11. 2011 - 7 605 7 078
DLHOPIS III 0% EUR 255 1 000 8. 3. 2010 8. 3. 2013 - 236 -
Tatra Residence01 5,75 % EUR 5 000 3 319 5. 12. 2007 5. 12. 2010 Year 17 143 16 666
Tatra Residence02 6,00 % EUR 3 000 3 319 31. 10. 2008 31. 10. 2011 Year 10 358 10 058
Tatra Residence03 4,50 % EUR 10 000 1 000 14. 4. 2010 14. 4. 2012 Year 10 095 -
Bonds Total 45 437 33 802
Debt securities, total 870 700 1 069 618
These notes are an integral part of the financial statements. 38
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Banking Act no. 483/2001 Z. z. the parent company is committed to finance mortgage loans at least
90% through the issuance and sale of mortgage bonds. NBS by a parent company established a special
financial conditions of mortgage loans so that must be financed at least 70%. At 30 June 2010 the
parent company has met that condition.
Form of mortgage bonds and bonds are bearer and all the mortgage bonds and other debt securities are
dematerialized.
Bonds are freely transferable, is not associated with any pre-emption. Right to payment of nominal value
and proceeds shall be governed by generally binding legal regulations and emission terms bonds, which
full text was published in accordance with the Act on Bonds No. 530/1990 Z. z. as amended.
Part of the mortgage bonds issued group is quoted on the Stock Exchange
in Bratislava.
At 30 June 2010 is part of the mortgage bonds issued bonds secured by the Slovak Republic included in
the securities of 19 056 thousand. euros for the following businesses:
Debt security
accounting
value
Collateral Mortgage bond Date of In favour of
accounting
termination of
value
Title in favour of guarantee
Emission
commercial
Government bond EUR 19 056 MB XIII 16 719 21. 11. 2010 banks
31 December 2009 is part of the mortgage bonds issued bonds secured by the Slovak Republic included
in the securities of 19 265 thousand. euros for the following businesses:
Collateral Mortgage bond Date of In favour of
accounting terminatio
Debt security n of
value
Title accounting in favour of guarantee
value Emission
commercial
Government bond EUR 19 265 MB XIII 16 616 21. 11. 2010 banks
Provisions for
29. liabilities
Movements in provisions for contingent liabilities as at
30 June 2010:
Transfers
At 1 January
Creation Dissolution exchange At 30 June 2010
2010
difference
s
Provisions for anniversaries
and other
loyalty Benefits 1 566 - (86) - 1 480
Litigation (note 38) 21 728 507 (996) - 21 239
Individual provision: 4 996 2 095 (2 966) 2 4 127
guarantees 1 406 1 364 (586) 2 2 186
irrevocable loan
commitments 3 590 731 (2 380) - 1 941
Portfolio provision for
off-balance sheet items 3 590 1 384 - - 4 974
Total 31 880 3 986 (4 048) 2 31 820
These notes are an integral part of the financial statements. 39
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Movements in provisions for contingent liabilities as at 30 June 2009:
Transfers
At 1 January
Creation Dissolution exchange At 30 June 2009
2009
differences
Provisions for anniversaries
and other
loyalty Benefits 1 527 - (70) - 1 457
Litigation (note 43) 20 340 532 - - 20 872
Individual provision 9 764 3 901 (7 152) - 6 513
guarantees 938 859 (287) 9 1 519
irrevocable loant
commitments 8 826 3 042 (6 865) (9) 4 994
Portfolio provision 6 173 - (2 473) - 3 700
Total 37 804 4 433 (9 695) - 32 542
30. Current tax liability
Movement of the obligation under the tax due from corporation tax at 30 June 2010:
At 1 January At 30 June
Creation Use
2010 2010
Current tax 146 58 (146) 58
Total 146 58 (146) 58
Movement of the obligation under the tax due from corporation tax at 30 June 2009:
At 1 January At 30 June
Creation Use
2009 2009
Tax due 21 376 - (21 366) 10
Total 21 376 - (21 366) 10
31. Deferred tax liability
Movement of deferred tax liability at 30 June 2010:
At 1 January At 30 June
Creation Use
2010 2010
Deferred tax 749 28 - 777
Total 749 28 - 777
In 2009, a deferred tax liability of income, which resulted mainly from taxable temporary differences
described in the note. 10.
Movement of deferred tax liability at 30 June 2009:
At 1 January At 30 June
Creation Use
2009 2009
Deferred tax 672 39 - 711
Total 672 39 - 711
32. Other liabilities
30.6.2010 31.12.2009
Accruals 1 795 1 644
Other liabilities to the state budget 260 2 677
Payables from spot transactions 378 282
Commitments to social fund 677 665
Liabilities to employees 10 849 14 928
Other liabilities 18 271 12 384
Total 32 230 32 580
These notes are an integral part of the financial statements. 40
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
33. Subordinated debt
30.6.2010 31.12.2009
Subordinated debt 120 353 120 373
Total 120 353 120 373
Subordinated debt broken down by individual banks:
Beginning of
Type of making use of
loan loan 30.6.2010 31.12.2009
Contracting
Curre
Type of loan ncy by
maturity
maturity
Subordinated debt from
banks:
- Commercial banks EUR Long-term September 2007 September 2012 75 000 75 003
- Commercial banks EUR Long-term October 2008 October 2013 45 353 45 370
Total 120 353 120 373
34. Equity
Equity consists of:
30.6.2010 31.12.2009
Equity - ordinary shares 48 553 48 553
Equity - preference shares 6 002 6 002
Own shares (340) (165)
Share premium - ordinary shares 104 931 104 931
Share premium – preference
shares 48 972 47 575
Share premium - own
shares (3 261) (1 492)
Reserve and other funds 13 175 10 457
Retained earnings (excluding after-tax profits for the current
year) 525 831 497 488
Total 743 863 713 349
At 30 June 2010 the share capital is 50,216 ordinary shares at a nominal value of 800 euros per share,
2,095 common shares at a nominal value of 4,000 euros per share and 1,500,532 preference shares with
a nominal value € 4. Shareholder structure is described in the "General". Earnings per share are set out
in Note 11
Type, form, number and nominal value of ordinary and preferred shares issued by parent company:
Ordinary Preference
Type shares Ordinary shares shares
Form To name To name To name
Form Booked Booked Booked
Number 50 216 pcs 2095 pcs 1,500,532 pcs
The nominal value of 1 pc € 800 EUR 4 000 4 eur
ISIN SK1110001502 SK1110015510 SK1110007186
Series 01-04 SK1110008424
SK1110010131
SK1110012103
SK1110013937
SK1110014901
Description of Rights:
Each ordinary share owner is a shareholder. As a shareholder of the basic shareholder rights under the
Commercial Code and the rules of the group, particularly:
right to participate in the company's profit (dividend), and in proportion to the nominal value of shares
the nominal value of shares of all shareholders,
right to attend the general meeting to vote on it, ask for information
and explanations relating to company matters or matters controlled by individuals,
related to the subject of the meeting, and apply it to design and
right to participate in the liquidation balance.
These notes are an integral part of the financial statements. 41
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Similar rights and each owner has preferred shares, with the difference that the priority actions is the
right to vote at general meetings except in cases where the law recognizes the right to vote such shares.
The priority shares carry a preferential right on the dividend, which consists in the fact that if the
company will achieve net profit of euro minimum of which corresponds to the number of issued
preference shares, holders of preference shares dividend will be paid a minimum of € 0.03 (in words
three euros cents) per preferred share.
Preference shares are subscribed, respectively. purchased during the subscription period, which annually
declares the management of the parent company after the annual general meeting of the parent
company. Right to subscribe for, respectively.buy preference shares, each employee who works at the
end of the subscription period in the group at least one year and is employed for an indefinite period.
Priority action group sells at a discount that accrues in costs over three years.
Voting rights at general meetings shall be governed by the nominal value of shares, one share with a
nominal value of € 800 corresponds to one vote and the equity in nominal value of EUR 4 000
corresponds to 5 votes. Where the law requires the vote of the shareholders having preference shares,
the vote is kept separately, and one priority share in nominal value of € 4 corresponds to one vote.
Ordinary shares are publicly traded on the stock market, preferred shares are traded in private.
The following table shows contributions to the group's share premium, reserves and retained earnings
(excluding profit for the current year). Use of reserves is limited (legal reserve) in accordance with the
Commercial Code of the Slovak Republic.
30. 6. 2010 31. 12. 2009
Parent Company 645 753 619 148
Companies included in consolidation method of full consolidation 35 608 30 072
Companies included in equity method 8 287 9 739
Share premium, reserves and retained earnings Total 689 648 658 959
The contribution of the group in consolidated profit after tax for the period:
30. 6. 2010 30. 6. 2009
Parent Company (Bank) 35 804 46 684
Companies included in consolidation method of full consolidation (524) 2 033
Companies included in equity method (82) (500)
Consolidated profit after tax 35 198 48 217
35. Capital Management
For the purposes of the capital management group defines regulatory capital, internal capital and
economic capital.
Regulatory capital is capital that is established capital adequacy rules under Pillar 1 The quantification of
regulatory capital group shall, in accordance with applicable legislation (Decree of the National Bank of
Slovakia no. 4 / 2007), which sets out its structure and minimum height. Group balance sheet date used
by Basel II - a standardized approach and internal ratings based approach for calculating capital
requirements.
Regulatory capital known as the group's own sources of funding consists of core capital and
supplementary own funds, which sum shall be reduced by the amount of deductible items. Group creates
no additional capital. Regulatory capital is used to cover credit risk and risks arising from positions
recorded in the trading book (market risk), foreign exchange risk and operational risk.
National Bank of Slovakia as the supervisory authority requires the group to maintain the ratio of total
capital required by the regulator to risk-weighted assets at 8% or above. The group complied with this
requirement on minimum capital of 30 June 2010 and in the course of 2009.
These notes are an integral part of the financial statements. 42
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Internal capital is also its own sources of funding groups that the group maintains internally and places
to cover their risks. Internal components consist of capital items of capital according to NBS no. 4 / 2007
by further additional resources that the Group has available. The group's objective is to maintain the
required level of internal capital. That target group of 30 June 2010 and the 2009 meet.
Economic capital is a necessary capital, respectively. corresponds to the minimum capital requirement to
cover unexpected losses from internal risks that the Group has defined as material. Economic capital
provides the financial stability of the confidence limits for the corresponding group credibility. Use
knowledge of economic capital is important for the group, for example. for active portfolio management,
valuation, controlling and so on.
Next table a composition regulatory capital Groups to 30. June 2010
and 31 December 2009:
30.6.2010 31.12.2009
Basic own funds 743 863 713 349
Paid-up equity 54 555 54 555
(-) Own shares (340) (165)
Share
premium 150 642 151 014
Funds from profits and other own funds 13 175 10 457
Other specific items of core capital 525 831 497 488
(-) Deductions from own funds (33 485) (34 870)
(-) Intangible assets (33 485) (34 870)
Additional own funds 93 949 118 061
Subordinated debt 120 000 120 000
Surplus created from provisions over expected losses (26 051) (1 939)
(-) Deductions from the original and additional own
funds (11 392) (11 474)
(-) From basic own funds (5 696) (5 737)
(-) From the additional own funds (5 696) (5 737)
Total own funds 792 935 785 066
36. Information on the cash flow statement
Profit from operations before changes in working capital and the interest received and interest paid:
30. 6. 2010 30. 6. 2009
Cash flows from operating activities
Profit before tax 47 569 60 591
Adjustments for non-cash operations (120 611) (141 549)
Interest expense 35 104 69 084
Interest income (192 806) (207 585)
Dividends received (5) (6)
Allowances, reserves for losses and other reserves, net 29 389 25 744
(Profit) loss on sale or other disposal of fixed assets 357 1 335
(Profit) loss on financial derivatives and trading securities 5 697 (26 963)
(Profit) loss on securities at fair value revalued through profit or loss
statement
(6 916) (3 328)
Net (profit) loss on investments in subsidiaries and affiliated companies - (11 489)
Share of retained profits of affiliated companies 82 500
Discount on preference shares 1 397 1 274
Depreciation and amortization 9 489 10 143
(Profit) loss on foreign exchange operations with cash and cash equivalents (2 399) (258)
Cash flows from operating activities before changes in
working capital, interest
and tax (73 042) (80 958)
These notes are an integral part of the financial statements. 43
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Money and cash equivalents to 30. June 2010, 31 December 2009, to 30. June 2009
and 31 December 2008 are:
30.6.2010 31.12.2009
Petty cash (Note 12) 71 216 71 230
Current accounts and interbank settlement (note
13) 44 202 40 680
Total 115 418 111 910
30. 6. 2009 31. 12. 2008
Petty cash 76 551 170 742
Deposits at the Národná banks Slovenska, current on
demand - 126 294
Overnight deposits with
NBS - 331 953
Government and other bills 49 843 -
Current accounts and interbank
settlement 45 015 62 965
Total 171 409 691 954
37. Related parties
Related parties are as defined in IAS 24 counterpart, which are:
a) enterprises that directly or indirectly through one or more intermediaries managed entity, are
managed by it or under shared management (including the type of companies holding subsidiaries
and fellow subsidiaries);
b) associated enterprises - enterprises in which the Group has significant influence and which are not
subsidiaries or joint ventures investor
c) individuals who directly or indirectly, of the voting rights groups, through which they can exercise
significant influence on the group, and anyone who might have to influence or such persons who
could be subject to their influence within the business group
d) key members management, ie the beneficiaries responsible for planning, Management
and control activities Groups including directors and managers workers groups and their close
family
e) undertakings in which any person referred to in paragraphs (c) or (d) directly or indirectly owns a
substantial share of voting rights or where that person may exercise significant influence. This
includes enterprises owned by directors or major shareholders of the Group and enterprises that
have a group with a member of key management.
In considering relations with any party related to the emphasis on the substance of the relationship, not
only the legal form.
In the normal course of business, the group into several transactions with related parties. Group
transactions were conducted under normal conditions and relations and the market prices.
These notes are an integral part of the financial statements. 44
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Assets, liabilities, commitments, guarantees And guarantee
issued received s on Related persons to
30. June 2010:
Statutory
Other
Group Associated authorities Total
RZB related
and
RZB businesses Supervisors
persons
Board *
Loans and current
accounts
to banks
and clients 142 855 44 359 - 810 4 662 192 686
Claims arising from transactions
with financial derivatives
29 548 1 546 - - - 31 094
Other assets 2 589 - - - 591
Deposits and current accounts of
banks
and clients 5 524 1 296 3 954 4 191 - 14 965
Liabilities from
transactions with
financial derivatives
26 997 368 - - - 27 365
120
Subordinated debt 75 000 45 353 - - - 353
Other liabilities 6 557 - - - 563
Guarantees issued 20 343 32 761 3 921 - - 57 025
Guarant
ees - 3 347 56 566 185 1 783 61 881
Guarantees received 28 090 23 814 - - - 51 904
* Includes members of the Board of RZB and
RIB
t
commitm guarante and guarantee h
Assets ents promises exposed es received s on e Related persons
31 December 2009:
Statutory
Other
Group Associated authorities Total
RZB related
and
person
RZB businesses Supervisors
s
Board *
Loans and current
accounts
to banks
and clients 165 623 14 617 22 476 830 5 085 208 631
Claims arising from transactions
with financial derivatives
19 550 3 326 - - - 22 876
Other assets 83 484 - - - 567
Deposits and current accounts of
banks
and clients 33 798 4 242 30 2 852 - 40 922
Liabilities from
transactions financial
derivatives
21 322 72 - - - 21 394
Subordinated debt 75 003 45 370 - - - 120 373
Other liabilities 18 371 - - - 389
Guarantees issued 20 104 30 159 3 921 - - 54 184
Guarant
ees - 3 843 37 544 171 1 450 43 008
Guarantees received 35 922 20 265 50 - - 56 237
* Includes members of the Board of RZB and
RIB
Revenues and costs related parties at 30 June 2010:
Statutory
Other
Group Associated body
RZB related Total
and
RZB businesses Supervisors
persons
Board
Interest
and similar income 461 116 19 20 108 724
Fees
and commissions income 23 246 108 - - 377
Unrealized profit (loss)
from transactions with
financial
derivatives 5 164 (1 968) - - - 3 196
Operating income 3 1 718 126 - - 1 847
Interest expense
and similar costs (494) (1 049) (7) (14) (37) (1 601)
Fees
and commissions expense (227) (168) - - - (395)
General administrative
costs (84) (3 255) - - - (3 339)
These notes are an integral part of the financial statements. 45
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Revenues and costs related parties at 30 June 2009:
Statutory
Other
Group Associated body
RZB related Total
and
RZB businesses Supervisors
persons
Board
Interest
and similar income 3 446 228 18 7 164 3 863
Fees
and commissions income 61 69 146 - - 276
Unrealized profit(loss)
from transactions with
financial
derivatives 6 771 426 - - - 7 197
Operating income 8 11 803 150 - - 11 961
Interest expense
and similar costs (1 620) (1 470) (21) (64) (97) (3 272)
Fees
and commissions expense (174) (1 164) - - - (1 338)
General administrative
costs (85) (3 307) - - - (3 392)
38. Items in foreign currencies
Financial statements include the assets and liabilities denominated in foreign currencies in this amount:
30.6.2010 31.12.2009
Assets 190 641 130 129
USD 67 179 71 015
other currencies (CZK, PLN, HUF, GBP and other) 123 462 59 114
220 342
Liabilities 272 306 149 887
USD 179 320 70 455
other currencies (CZK, PLN, HUF, GBP and other) 92 986 70 455
39. Foreign assets and liabilities
Assets and liabilities related to persons outside the territory of the Slovak Republic:
30.6.2010 31.12.2009
Assets 668 569 1 104 094
Austria 374 663 774 696
other countries (mainly European Union countries) 293 906 329 398
Commitments 468 665 591 465
Austria 122 589 145 484
other countries (mainly European Union countries) 346 076 445 981
These notes are an integral part of the financial statements. 46
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
40. Future liabilities and other off-balance sheet items
Group shows these future liabilities and other off-balance sheet
items:
30.6.2010 31.12.2009
Future liabilities: 470 995 448 802
of credit guarantees 872 332
of other guarantees 429 966 419 649
of letters of credit 40 157 28 821
Promises: 2 142 339 2 207 349
of irrevocable loan assurances 1 582 345 1 607 687
1 year 1 164 492 1 218 772
longer than 1 year 417 853 388 915
of revocable credit assurances 559 994 599 662
1 year 363 011 341 607
longer than 1 year 196 983 258 055
Total 2 613 334 2 656 151
Contingent liabilities from guarantees represent obligations to make payments in a group
event inability
client to meet their obligations to third parties.
Documentary credit is irrevocable commitment to the group, who gave it to the client request (buyer) to
pay the beneficiary (seller) or cash, respectively. accept notes issued by the beneficiary after submission
of specified documents, provided that all the terms and conditions of credit. Documentary credits are
covered by guarantees, depending on the person's ability to repay the loan and the same principles as
guarantees or loans.
The main objective of unused credit limits (loan commitments) is to ensure that the client has available
the required funds. Commitments to provide credit, issued by the group include loan commitments
issued and the unused portion of approved overdraft loans.
The risk associated with off-balance sheet financial pledges and commitments is assessed as in customer
loans, taking into account the financial situation and activities of the entity, the Group provided a
guarantee, and to take security. At 30 June 2010 created a group on the risk reserve of € 9,101
thousand. million (December 31, 2009: 8 586 thousand. million), 29th note
Litigation
In the ordinary activities of the group participants in various lawsuits and claims. Any litigation is subject
to a special system of monitoring and periodic review under the standard practice group. If it is likely
that the group will have to settle a claim and an estimate of the claim can be reliably determined, the
group creates a reserve. The total amount of reserves for litigation is of 21 239 thousand. million
(December 31, 2009: 21 728 thousand. million), 29th note
Future operating lease commitments
The Group has off balance sheet items as future potential of irrevocable commitments under operating
leases (as lessee), 31 December 2008 as follows:
30.6.2010 31.12.2009
Irrevocable liabilities under operating leases total 31 771 36 934
Less than 1 year 9 739 10 393
1 year to 5 years 16 340 19 967
More than 5 years 5 692 6 574
30.6.2010 30.6.2009
Operating leases recognized in other administrative costs 5 838 6 429
These notes are an integral part of the financial statements. 47
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
41. Financial leasing
Development of financial leasing receivables is:
30.6.2010 31.12.2009
The value of investments, gross 23 582 25 273
less than 3 months 28 20
3 months to 1 year 3 397 3 397
1-5 years 12 201 13 591
more than 5 years 7 956 8 265
Unrealised finance income 2 327 2 666
less than 3 months 161 168
3 months to 1 year 460 495
1-5 years 1 614 1 791
more than 5 years 92 212
The value of investments, net 21 256 22 607
less than 3 months (133) (148)
3 months to 1 year 2 938 2 903
1-5 years 10 587 11 800
more than 5 years 7 864 8 052
Receivables from finance leases include lease receivables shown under "Loans and advances to
customers, gross (note 14).
42. Values taken into custody and administration
30.6.2010 31.12.2009
Values taken into custody 60 836 53 884
Investment bills 44 068 29 748
Bills - 938
Commodity and warehouse bonds 14 360 23 198
Gold 2 408 -
Assets under administration 192 940 269 830
Securities 192 940 269 830
Total 253 776 323 714
Values received from clients in custody and reports show the group in real terms. Values taken into
custody and administration are the property of, and for that reason are not part of its assets.
Addition to those listed in the table above group, in accordance with the function of the depositary for
the Tatra Asset Management reports. al., Inc., ("TAM") reported on 30 June 2010 the securities
deposited in the management of mutual funds in the amount of TAM 886 672 thousand. million
(December 31, 2009: 909 304 thousand. euros).
43. Assets pledged as security
Obligations secured by the assets of the group:
30.6.2010 31.12.2009
Deposits and current accounts with banks (loans received) 16 673 17 507
Liabilities from debt securities 17 040 222 368
Total 33 713 239 875
These notes are an integral part of the financial statements. 48
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Security for the above commitments, those assets were recognized in the statement of financial position:
30.6.2010 31.12.2009
Loans and current accounts to banks 1 473 207 323
Financial assets for trading - 155 639
Financial assets at fair value through profit and loss statement 52 480 53 058
Securities held to maturity 261 587 127 990
Total 315 540 544 010
Information on securities that are pledged as security for the obligations of the group are given in note
25 "Deposits and current accounts of banks' and in Note 28" Debt securities ".
The Group opened as security margin accounts as collateral for derivative transactions that take place.
The group maintains the accounts of those funds in the amount dependent on the volume of transactions
and risk. Amount of cash funds deposited in those accounts is equal to the assets used as collateral and
reported in "Loans and current accounts to banks."
Group established in favor of NBS government bonds and bonds issued by the banking sector held in the
portfolio securities held to maturity in pooling in the amount of 261 587 thousand. million (December 31,
2009: 283 629 thousand. euros).
44. Defaulted loan portfolio
Defaulted loans are credit portfolio of claims under the definition of "International Convergence of Capital
Measurement and Capital Standards" issued by the Basel Committee and known as Basel II. The
definition of failure in the Slovak Republic is governed by § 73 NBS No. 4 / 2007 on the bank's capital
requirements and its own sources of financing banks.
Defaulted loans are not defined in the methodology of the International Accounting Standards for
Financial Reporting.
The following overview is an analysis of failure of the loan portfolio at 30 June 2010:
Public Business Retail
Total
sector clients clients
Non-performing loans 109 178 885 107 851 286 845
Adjustments to non-performing loans 109 90 462 53 880 144 451
Claimable value of collateral accepted - 64 737 52 258 116 995
The following overview is an analysis of failure of the loan portfolio at 31 December 2009:
Public Business Retail
Total
sector clients clients
Defaulted loans 127 156 767 89 523 246 417
Adjustments to non-performing loans 3 70 909 45 986 116 898
Claimable value of collateral accepted - 64 721 39 712 104 433
45. Average number of employees
The group had such an average number of employees:
30.6.2010 31.12.2009
Group staff 3 537 3 626
including: board members 6 6
Total 3 537 3 626
These notes are an integral part of the financial statements. 49
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Financial
46. derivatives
The total amount of outstanding financial derivatives at 30 June 2010:
Nominal value by maturity Fair values
To From 1 to 5 Over Positive Negative
Total
1 year years 5 years (Note 16) (Note 27)
a) Interest rate
transactions 1 052 826 2 716 071 560 686 4 329 583 124 011 (120 317)
OTC products:
Interest rate swaps 1 052 826 2 670 699 555 286 4 278 811 123 851 (120 157)
Interest rate options - bought - 22 686 - 22 686 160 -
Interest rate options - sold - 22 686 - 22 686 - (160)
Stock products:
Interest rate futures - - 5 400 5 400 - -
b) Currency transactions 1 236 748 62 033 - 1 298 781 29 428 (27 073)
OTC products:
Currency swaps 344 579 - - 344 579 1 348 (1 736)
Currency forwards 334 108 2 495 - 336 603 10 551 (7 431)
Currency options - purchased 270 378 29 914 - 300 292 17 529 -
Currency options - sold 286 828 29 624 - 316 452 - (17 906)
Stock products:
Currency futures 855 - - 855 - -
c) Indices trading - 164 379 2 735 167 114 2 127 (2 202)
OTC products:
Options on the index - bought - 10 275 - 10 275 1 478
Options on the index -
sold - 10 272 - 10 272 - (1 478)
Index Swaps 143 832 - 143 832 649 (724)
Stock products:
Index futures - - 2 735 2 735 - -
d) Commodity trades 2 248 - - 2 248 14 (9)
OTC products:
Commodity swaps 2 248 - - 2 248 14 (9)
Total 2 291 822 2 942 483 563 421 5 797 726 155 580 (149 601)
These notes are an integral part of the financial statements. 50
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The total amount of outstanding financial derivatives at 31 December 2009:
Nominal value by maturity Fair values
To From 1 to 5 Over Positive Negative
Total
1 year years 5 years (Note 16) (Note 27)
a) Interest rate
transactions 1 357 004 3 013 570 605 990 4 976 564 119 500 (110 896)
OTC products:
Interest rate swaps 1 357 004 2 962 598 605 990 4 925 592 118 966 (110 362)
Interest rate options -
bought - 22 686 - 22 686 534 -
Interest rate options -
sold - 22 686 - 22 686 - (534)
Stock products:
Interest rate futures - 5 600 - 5 600 - -
b) Currency
transactions 1 264 429 67 538 - 1 331 967 23 031 (17 227)
OTC products:
Currency swaps 438 056 - - 438 056 7 701 (669)
Currency forwards 315 606 4 079 - 319 685 2 378 (3 675)
Currency options -
purchased 247 798 31 697 - 279 495 12 952 -
Currency options - sold 262 331 31 762 - 294 093 - (12 883)
Stock products:
Currency futures 638 - - 638 - -
c) Indices trading - 51 030 1 035 52 065 2 445 (2 455)
OTC products:
Options on the index –
bought - 10 275 - 10 275 2 445
Options on the index -
Sold - 10 275 - 10 275 - (2 445)
Index Swaps 30 480 - 30 480 - (10)
Stock products:
Index futures - - 1 035 1 035 - -
d) Commodity trades 482 - - 482 14 (14)
OTC products:
Commodity swaps 482 - - 482 14 (14)
Total 2 621 915 3 132 138 607 025 6 361 078 144 990 (130 592)
These notes are an integral part of the financial statements. 51
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
47. Fair value of financial instruments
Financial assets at fair value
The fair value of financial instruments is the amount for which an asset could be exchanged or a liability
to pay between knowledgeable, willing parties in a transaction under normal conditions and at market
prices. When available, market prices (in this case, especially in securities and derivatives traded on
stock exchanges and markets functioning), the estimate of fair value will be developed based on market
prices. All other financial instruments are valued based on internal valuation models, including models of
the present value of a model or option price, or use an outside expert opinion.
The following table presents an overview of financial instruments reported at fair value, divided into
levels 1 to 3 by determining their fair value at 30 June 2010:
Level 1 * Level 2 ** Level 3 *** Total
Financial assets at fair value 285 733 155 580 - 441 313
Debt securities and other securities
with fixed yield 261 482 - - 261 482
Shares, debt and other
securities with variable yield 24 251 - - 24 251
Positive fair value of financial
Derivatives - 155 580 - 155 580
Financial assets at fair value
revalued through the profit and loss
statement 133 648 14 189 - 147 837
Debt securities and other securities
With fixed yield 133 648 49 - 133 697
Shares, debt and other
securities with variable yield - 14 140 - 14 140
Financial assets held for sale - - 644 644
Securities available for sale - - 644 644
Total 419 381 169 769 644 589 794
Level 1 Level 2 Level 3 Total
Financial liabilities at fair value - 149 601 - 149 601
Negative fair value of financial
derivatives - 149 601 - 149 601
Total - 149 601 - 149 601
The following table presents an overview of financial instruments reported at fair value divided into levels
1 to 3 by determining their fair value at 31 December 2009:
Level 1 * Level 2 ** Level 3 *** Total
Financial assets at fair value 401 237 144 990 - 546 227
Debt securities and other securities
With fixed yield 376 247 - - 376 247
Shares, debt and other
securities with variable yield 24 990 - - 24 990
Positive fair value of financial
derivatives - 144 990 - 144 990
Financial assets at fair value
revalued through the profit and loss
statement 195 837 13 313 - 209 150
Debt securities and other securities
with fixed yield 195 837 - - 195 837
Shares, debt and other
securities with variable yield - 13 313 - 13 313
Financial assets held for sale - - 644 644
Securities available for sale - - 644 644
Total 597 074 158 303 644 756 021
These notes are an integral part of the financial statements. 52
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Level 1 Level 2 Level 3 Total
Financial liabilities at fair value - 130 592 - 130 592
Negative fair value of financial
derivatives - 130 592 - 130 592
Total - 130 592 - 130 592
* Level 1 - assessment based on quoted prices in active markets.
** Level 2 - determination based on an active market, but not by the prices of identical assets and liabilities.
*** Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs)
Financial assets carried at amortized cost
Claims and liabilities to banks or customers at a fixed rate to overestimate the real value, which was
different than their carrying value given in the statement of financial position, if their residual maturity is
longer than one year. Claims and liabilities with floating rate into account only if the rollover period of
interest was more than one year. Only then will have a discount based on the expected interest rate in
line with market rates significant impact.
Fair Book Fair Book
Difference Difference
value value value value
30.6.2010 31.12.2009
30.6.2010 30.6.2010 31.12.2009 31.12.2009
Assets
Loans and current accounts
to banks 453 619 453 619 - 1 066 737 1 066 737 -
Loans to customers,
net 5 583 775 5 256 161 327 614 5 692 833 5 484 549 208 284
Financial assets held to
maturity 2 147 976 2 103 551 44 425 1 553 701 1 524 294 29 407
Liabilities
Deposits and current
accounts of banks 54 652 54 652 - 103 448 103 448 -
Customer deposits 6 804 629 6 798 285 6 344 6 719 725 6 716 322 3 403
Debt
securities 871 783 870 700 1 083 1 082 266 1 069 618 12 648
Subordinated debt 120 353 120 353 - 120 373 120 373 -
48. Risks
Credit risk
Group to bear credit risk, ie the risk that a counterparty will be unable to pay when due amounts owed in
full. Group structures the levels of credit risk it assumes by establishing the limits of risk accepted in
relation to one borrower or group of borrowers and in relation to individual countries. Such risks are
regularly monitored and at least annually evaluated. Exposure to any one borrower including banks and
securities dealers further restrict the sub-limits laid down in the balance sheet and off-balance sheet
exposures and daily exposure limits in relation to trading items such as forward foreign exchange
contracts. The actual exposure is to set limits daily compares.
Credit exposure is managed through regular analysis of the ability of borrowers and potential borrowers
to repay principal and interest and by any adjustments to credit limits. Credit risks are also partially
governed by obtaining collateral and guarantees from individuals and corporations.
The Group assesses retail borrowers through scoring models created for individual products. For credit
risk management in the retail lending group uses the following main instruments: Credit scoring is a tool
used to group decision-making on loans to retail natural and legal persons. As a second important tool
for managing credit quality in the retail portfolio are schvaľovania obchodov system is used for risk
assessment specialists, whose task is to optimize the portfolio in return for the risk reception of groups.
Regular monitoring of the quality of the existing portfolio of loans and monitoring of trends in the
portfolio together with a suitably chosen strategy to maintain quality of the existing portfolio is also very
important component that contributes to maintaining the quality of the entire portfolio and the desired
level of cost risk groups.
These notes are an integral part of the financial statements. 53
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Recoveries using the group depending on the type and amount of the very wide range of tools and
strategies for recovery.The recovery of used internal but also external sources. In case of failure recovery
to customers claims are then passed outside companies specializing in recovering bad debts court.
Claims on a larger scale or specific claims addressed by a specialized internal staff group in collaboration
with the Legal Department and other professional services group.
Group in the monitoring and management of credit risk nature emphasizes the concentration risk and
residual risk:
Concentration risk is meant the risk arising from concentration of the group against a person, group of
related parties, state, geographic area, economic sector, a provider of security etc. This risk is so closely
linked with exposures in the banking book and trading book positions. Due to its efficient management
group is to focus on the qualitative aspect of portfolio management and adequate diversification of
respecting the limits of concentration (large exposures and other). The Group also develops methods for
quantification of concentration risk.
Residual risk is the risk arising from lack of enforcement of rights under the group received from security
to credit risk. Group eliminates the risk particularly through compliance with the legal and operational
requirements, conservative valuation methods and the revaluation, and use of appropriate discounts
depending on the type and quality of collateral accepted.
The following table represents the maximum amount of credit risk without taking account of securities
received:
30.6.2010 31.12.2009
Credit risk related to balance sheet assets:
Loans and current accounts to banks 453 619 1 066 737
Loans to customers, net 5 256 161 5 320 291
Financial assets for trading 441 313 546 227
Financial assets at fair value revalued through profit and loss 147 837 209 150
Financial assets held to maturity 2 103 551 1 524 294
Financial assets held for sale 644 644
Share in affiliated companies 11 395 11 477
Current tax asset 4 833 13 453
Other assets 22 748 23 663
Total 8 442 101 8 715 936
30.6.2010 31.12.2009
Credit risk related to off-balance sheet items:
Future liabilities from guarantees and letters of credit 470 995 448 802
The irrevocable standby credits / stand-by facility " 1 582 345 1 607 687
The revocable standby credits/ stand-by facility " 559 994 599 662
Total 2 613 334 2 656 151
These notes are an integral part of the financial statements. 54
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The following table presents an overview of the quality of loan portfolio at 30 June 2010 (balance sheet
positions):
Claimable
Individual Individual Portfolio
- Net accounting value
measured - adjustment adjustment
Total accounting Uncapitalize
value d value of received
impaired items items
collateral
Loans and current accounts
to banks 453 619 453 619 - - - 453 619 -
Loans to clients 5 449 454 4 986 404 463 050 157 727 35 565 5 256 162 3 487 410
public sector 12 382 12 273 109 109 - 12 273 9 399
corporate clients 3 175 754 2 787 370 388 384 103 521 18 488 3 053 745 1 773 845
retail clients 2 261 318 2 186 761 74 557 54 097 17 077 2 190 144 1 704 166
Total 5 903 073 5 440 023 463 050 157 727 35 565 5 709 781 3 487 410
The following table presents an overview of the quality of loan portfolio at 31 December 2009 (balance sheet positions):
Claimable
Individual Individual Portfolio
Net accounting value
measured - adjustment adjustment
Total accounting Uncapitalize
value d value of received
impaired items items
collateral
Loans and current accounts
to banks 1 066 737 1 066 737 - - - 1 066 737 -
Loans to clients 5 484 549 4 978 141 506 408 137 697 26 561 5 320 291 3 545 493
public sector 12 948 12 821 127 3 - 12 945 6 622
corporate clients 3 251 627 2 805 569 446 058 90 494 9 259 3 151 874 1 802 634
retail clients 2 219 974 2 159 751 60 223 47 200 17 302 2 155 472 1 736 237
Total 6 551 286 6 044 878 506 408 137 697 26 561 6 387 028 3 545 493
These notes are an integral part of the financial statements. 55
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The following table presents an overview of the quality of loan portfolio at 30 June 2010 (off-balance sheet items):
Claimable
Individual
Individual Portfolio Net accounting value
measured -
Total accounting
value Uncapitalized provision provision value of received
impaired
collateral
Future liabilities and other
off-balance sheet items to
Banks 57 834 57 834 - - - 57 834 15 446
Future liabilities and other
off-balance sheet items to
Clients 2 555 499 2 495 599 59 900 4 126 4 974 2 546 399 417 281
Public Sector 19 145 19 145 - - - 19 145 434
corporate clients 2 082 614 2 022 963 59 651 4 119 4 974 2 073 521 382 907
retail clients 453 740 453 491 249 7 0 453 733 33 940
Total 2 613 333 2 553 433 59 900 4 126 4 974 2 604 233 432 727
The following table presents an overview of the quality of loan portfolio at 31 December 2009 (off-balance sheet items):
Claimable
Individual
Individual Portfolio Net accounting value
measured -
Total accounting
value Uncapitalized provision provision value of received
impaired
collateral
Future liabilities and other
off-balance sheet items to
Banks 51 171 51 171 - - - 51 171 14 858
Future liabilities and other
off-balance sheet items to
clients 2 604 980 2 545 080 59 900 4 996 3 590 2 596 394 465 043
Public Sector 17 073 17 073 - - - 17 073 1 292
corporate clients 2 153 830 2 094 179 59 651 4 990 3 590 2 145 250 395 674
retail clients 434 077 433 828 249 6 - 434 071 68 077
Total 2 656 151 2 596 251 59 900 4 996 3 590 2 647 565 479 901
These notes are an integral part of the financial statements. 56
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
assets
(balance
Overview individual species taken Security to finance sheet states)
entitlement in value:
30.6.2010 31.12.2009
To cover loans 3 487 410 3 545 493
Cash 38 222 39 085
Guarant
ees 520 679 490 222
Securities 50 276 89 683
Real estate 2 617 115 2 696 635
Movable estate 112 433 94 326
Receivables 148 685 135 542
To cover the debt securities 16 721 16 620
Securities 16 721 16 620
To cover claims from derivative transactions 4 582 5 265
Cash 4 582 5 265
Total 3 508 713 3 567 378
Overview of different types of collateral accepted for future commitments and other off-balance sheet
value of eligible items in:
30.6.2010 31.12.2009
To cover future liabilities and other balance sheet items 432 727 479 901
Cash 53 035 42 650
Guarantees 168 972 215 138
Securities 17 944 42 928
Real estate 100 461 106 553
Movable estate 57 507 24 380
Claims 34 808 48 252
Total 432 727 479 901
The following overview is an analysis undeteriorated loan portfolio by default at 30 June 2010:
Received
From 181
Within 90
To From 91 to days More than collateral
days
maturity 180 days 1 year 1 year -
to non-
performing
loans
Loans and current
accounts
to banks 453 619 - - - - -
Loans to
clients 4 821 671 146 222 18 459 - 52 40 595
Public Sector 12 273 - - - - -
corporate clients 2 757 217 30 010 91 - 52 21 586
retail clients 2 052 181 116 212 18 368 - - 19 009
Total 5 275 290 146 222 18 459 - 52 40 595
Next review Is an analysis of uncapitalized credit portfolio by default
31 December 2009:
Received
From 181
Within 90
To From 91 to days More than collateral
days
to non-
maturity 180 days 1 year 1 year performing-
loans
Loans and current
accounts
to banks 1 066 737 - - - - -
Loans to
clients 4 830 062 128 280 19 746 27 26 37 188
Public Sector 12 821 - - - - -
corporate clients 2 775 110 29 906 500 27 26 23 210
retail clients 2 042 131 98 374 19 246 - - 13 978
Total 5 896 799 128 280 19 746 27 26 37 188
These notes are an integral part of the financial statements. 57
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The following overview is an analysis of damaged credit portfolio at 30 June 2010:
Public Business Retail
Total
sector clients clients
Individually valued - bad
Loans 109 388 384 74 557 463 050
Individual adjustments 109 103 521 54 097 157 727
Claimable value of received
Collateral - 230 469 52 532 283 001
% Coverage by provisions 100,0% 26,7% 72,6% 34,1%
% Coverage by provisions and received
collateral 100,0% 86,0% 143,0% 95,2%
Interest income from bad loans - 1 398 2 515 3 913
The following overview is an analysis of damaged credit portfolio at 31 December 2009:
Public Business Retail
Total
sector clients clients
Individually valued –bad 127
Loans 446 058 60 223 506 408
Individual adjustments 3 90 494 47 200 137 697
Claimable value of received
collateral - 295 776 38 283 334 059
% Coverage by provisions 2,4 % 20,3 % 78,4 % 27,2 %
% Coverage by provisions and received
collateral 2,4 % 86,6 % 141,9 % 93,2 %
Interest income from bad loans - 1 420 2 128 3 548
These notes are an integral part of the financial statements. 58
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The following overview is a quality loan portfolio, which is not degraded and is not overdue by internal
rating:
30.6.2010 31.12.2009
Loans and current accounts to banks: 453 619 1 066 737
A2 - Excellent credit rating 1 198 2 082
A3 - Very good credit rating 409 077 964 527
B1 - Good credit rating 39 076 38 901
B2 - Average credit rating 821 51 267
B3 - Ordinary credit rating 787 5 354
Without determining the rating 2 660 4 606
Loans to customers: 4 821 671 4 830 062
Public sector: 12 273 12 821
A3 - Very good credit rating 91 5 758
B1 - Good credit rating 747 377
B2 - Average credit rating 191 -
B3 - Ordinary credit rating 4 642 6 082
B4 - Poor credit rating 5 765 148
B5 - Very poor credit rating 406 333
C - Doubtful / high risk of failure 355 67
Without determining the rating 76 56
Corporate customers without project funding: 2 187 894 2 191 952
1.0 - Excellent credit rating 29 183 20 712
1.5 - Very good credit rating 171 064 232 031
2.0 - Good credit rating 183 666 219 080
2.5 - Average credit rating 375 510 381 061
3.0 - Ordinary credit rating 403 186 410 190
3.5 - Poor credit rating 566 909 535 117
4.0 - Very poor credit rating 353 074 342 509
4.5 - Good chance of failure 86 910 50 768
5.0 - Defaulted 352 314
Without determining the rating 18 040 170
Corporate clients - project financing: 569 323 583 158
6.1 - Excellent assessment profile project finance 191 706 218 568
6.2 - Good profile assessment of project financing 274 426 276 752
6.3 - Acceptable rating profile project finance 43 270 78 451
6.4 - Low profile assessment of project financing 59 916 9 025
6.5 - Defaulted 5 362
Retail clients (no rating assignment): 2 052 181 2 042 131
Total 5 275 290 5 896 799
A rating system for corporate clients (group applied for the whole group RZB) is based on economic
evaluation of the client and is in accordance with the Internal Rating Based Approach (IRB) as required
by Basel II. The rating scale includes 10 grades from 0.5 to 5.0 and the rating scale for project funding
includes 5 grades 6.1 to 6.5.
Credit risk for portfolios of securities is low, because most of the purchased debt securities are
government bonds issued by the Slovak Republic. In the case of exposure to corporate debt securities
that are in the amount of 30 007 thousand. EUR (31.12.2009: 29 878 thousand. million), the risk
category of issuers of these securities is 1.5 - Very good credit score of 29 823 thousand. EUR
(31.12.2009: 13 313 thousand. euros). The remaining amount of corporate debt securities amounting to
184 thousand. EUR (31.12.2009: 309 thousand. million) represents a commitment to clients with a
rating of 3.5 - Poor credit rating.
Credit risk arising from derivative transactions is also at least on the ground that the transactions are
secured by some form of security (eg binding of client funds, etc.).
These notes are an integral part of the financial statements. 59
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Breakdown of credit risk groups to the Slovak Republic (Slovak Republic controlled companies,
guarantees issued by the Slovak Republic and similar exposures):
30.6.2010 31.12.2009
Government bonds and other securities accepted by NBS
for refinancing 1 156 193 840 837
Loans and current accounts to banks 192 947 94 284
Loans to clients 282 256 257 359
Debt securities 1 233 742 1 129 426
Total 2 865 137 2 321 906
Concentration of credit risk to the National Bank of Slovakia is as
follows:
30.6.2010 31.12.2009
Deposits with National Bank of Slovakia 192 947 94 284
required reserve 192 947 94 284
Total 192 947 94 284
The overall effect of the National Bank for profit groups at 30 June 2010 revenue of 618 thousand. Euro
(30.6.2009: 2 915 thousand. euros), which is mostly interest.
Restructuring
Group may govern contractual terms for the repayment of their credit claims in case the client's financial
situation is not a good client and would not repay their obligations to the group in real time.
In the case of revolving credit agreement is concluded installments payable on the debt - the contract is
not prolonged, as it is transformed into an installment loan after the extraordinary maturity. In
exceptional circumstances it may be prolonged overdraft facility, but with a gradual reduction.
In the case of installment loans are changing payment plans for clients inability to pay the agreed
deadlines.
The carrying value of credit claims, which were revised contract terms for 1 half of 2010 due to
delinquency or poor financial situation of the client, was 51 850 thousand. euros (1st half of 2009: 24
780 thousand. euros).
Market risk
The Group is exposed to market risks. Market risks arise from open positions in interest rate, currency
and equity products, which are exposed to general and specific market. Group to establish an
approximate amount of market risk positions and their estimated maximum possible losses, using
internal reports and models for different types of risks it is exposed. The Group uses a system of limits to
ensure that the level of risk the group is exposed in no time exceed the amount of risk that is willing and
able to bear. Those limits are monitored daily.
For the purposes of risk management for market risk considers the risk of potential losses that may arise
in the group due to unfavorable changes in market rates and prices. To manage market risk system is
used limits applied to individual positions and portfolios.
These notes are an integral part of the financial statements. 60
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Given the structure of the business group is particularly exposed to these market risks:
currency risk and
interest rate risk.
Market risks, in which the group faces significant exposures are:
equity risk and
commodity risk.
Currency risk
Currency risk is the possibility of loss arising from adverse movements in exchange rates of foreign
currencies. The Group manages this risk by establishing and monitoring limits on open positions.
Open foreign exchange positions via the bank information system monitor in real time. Foreign exchange
position of the group is followed separately for each currency and the group limit for a specific currency,
if necessary, follow-up (eg in case of turbulence in the market). For the position limits are set by the
standards of the RZB Group. Data on foreign exchange positions of the group and respect the limits set
by RZB are reported weekly.
The Group has in addition the limit on open foreign exchange position and set a negative gamma limit on
an option position in any currency pair that is traded. The group has also set limit on the total vega an
option position.
Position of the client option transactions in currency pairs, for which the trade group has no set limit
gamma is close to market so that the group had currency pair in the open position.
1. In addition, the group has established three different stop-loss limits on total foreign exchange
position.
Net foreign exchange position of the related assets and liabilities as at 30 June 2010 and 31 December
2009:
Net foreign Net foreign
exchange exchange
position position
at 30 June 31 December
2010 2009
EUR 81 665 90 213
USD (112 141) (78 872)
Other 30 476 (11 341)
Net foreign currency balance sheet position, total - -
EUR (79 785) (95 228)
USD 111 996 79 162
Other (20 191) 17 434
Net foreign currency off-balance sheet position, total 12 020 1 368
Net foreign exchange position, total 12 020 1 368
Interest rate risk
Interest rate risk is the fact that the value of financial instrument due to changes in market interest rates
fluctuate. Time limits for fixed interest rate bonds to a financial instrument indicates to what extent a
given financial instrument is exposed to interest rate risk.
The Group controls and manages interest rate risk for all trades and separately for banking and trading
book. Interest rate risk is monitored and evaluated daily.
To monitor interest rate risk, the method of gap analysis (interest GAP), the method sensitivity of market
value to shift the yield curve for a defined number of basis points (Basis point value, BPV) and three
types of stop-loss limits on interest-sensitive instruments.
Internal limits interest rate risk for the banking book are set by the open position limits for each time
zone interest rate gap for each menu, which is part of the banking book (in particular, EUR, USD).
These notes are an integral part of the financial statements. 61
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Limit groups to interest rate risk of banking book is set in the form of limits on the sensitivity of the total
position to shift the yield curve (BPV) bank book with a limit on the concentration of positions in the
basket one time and one currency.
Interest rate risk limits of the trading book are set in the form of limits on the sensitivity of the overall
position of the shift of the yield curve (BPV). Limits are set for individual currencies, which are part of the
trading book. Loss due to interest rate movements is limited to three types of stop-loss limits.
Branch of the integrated risk management by weekly information on the current level of interest rate risk
in various currencies and interest rate risks, spending limits Committee on Asset & Liability Committee
(ALCO).
Interest positions in case of exceeding the limits set by standard and concluded derivative financial
instruments.
The following table provides information on the balance sheet value, the extent to which the group is at
risk of interest rate either by applying the contractual maturity of financial instruments, or for those that
are revalued to market rates of interest before maturity, according to date of the next revaluation.
Assets and liabilities that have contractually agreed maturity date or which are not remunerated, are
grouped in the category 'unspecified'.
These notes are an integral part of the financial statements. 62
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Interest rate gap of assets and financial liabilities at 30 June 2010:
From 3
Within 3 From 1 to 5 More than 5
Not
months to specified-
months years years Total
1 year
including including including
including
Assets
Cash and balances with central banks 192 947 - - - 71 216 264 163
Loans and current accounts to banks 405 885 - 45107 - 2 627 453 619
Loans to customers, net 3 093 715 995 648 986540 61 803 118 455 5 256 161
Financial assets for trading 94 055 120 527 192260 34 290 181 441 313
Financial assets at fair value revalued through profit or loss 4 31 718 55585 60 530 147 837
Financial assts held to maturity 535 773 445 936 774413 347 429 - 2 103 551
Financial assets held for sale - - - - 644 644
Other assets - - - - 22 748 22 748
Interest position for financial assets at 30 June 2010 4 322 379 1 593 829 2 053 905 504 052 215 871 8 690 036
Liabilities
Deposits and current accounts of banks 35 407 17244 1299 - 702 54 652
Customer deposits 2 622 801 2 425352 1 715115 5 150 29 867 6 798 285
Financial liabilities held for trading 13 554 14560 75550 45 937 - 149 601
Debt securities 378 888 171035 320777 - - 870 700
Provisions for liabilities - - - - 31 820 31 820
Other liabilities - - - - 32 230 32 230
Subordinated debt 120 353 - - - - 120 353
Interest position for financial liabilities at 30 June 2010 3 171 003 2 628 191 2 112 741 51 087 94 619 8 057 641
Net interest position, net of 30 June 2010 1 151 376 (1 034 362) (58 836) 452 965 121 252 632 395
These notes are an integral part of the financial statements. 63
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Interest rate gap of assets and financial liabilities at 31 December
2009:
From 3
Within 3 From 1 to 5 More than 5
months to Unspecified
months years years Total
1 year
including including including
including
Assets
Cash and balances with central banks 94 284 - - 71 230 165 514
Loans and current accounts to banks 811 485 205536 45110 4 606 1 066 737
Loans to customers, net 3 061 190 1 105186 973770 68 148 111 997 5 320 291
Financial assets for trading 235 923 48872 221135 39 838 459 546 227
Financial assets at fair value revalued through profit or loss 23 084 56671 70964 58 431 - 209 150
Financial assets held to maturity 208 119 330161 773640 212 374 - 1 524 294
Financial assets held for sale - - - - 644 644
Other assets - - - - 11 477 11 477
Interest position for financial assets at 31 December 2009 4 434 085 1 746 426 2 084 619 378 791 200 413 8 844 334
Commitments
Deposits and current accounts of banks 99 839 656 1668 - 1 285 103 448
Customer deposits 2 371 206 2 607 050 1 713244 1 876 22 946 6 716 322
Financial liabilities held for trading 11 816 14 636 72779 31 361 - 130 592
Debt securities 430 587 409 068 229963 - - 1 069 618
Provisions for liabilities - - - - 31 880 31 880
Other liabilities - - - - 32 580 32 580
Subordinated debt 120 373 - - - - 120 373
Interest position for financial liabilities at 31 December 2009 3 033 821 3 031 410 2 017 654 33 237 88 691 8 204 813
Net interest position, net of 31 December 2009 1 400 264 (1 284 984) 66 965 345 554 111 722 639 521
These notes are an integral part of the financial statements. 64
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Equity risk
Equity risk group exhibits changes in stock prices. Equity risk is determined by the group. Equity risk is
measured notably through individual exposure and through calculation and monitoring the overall stock
position. Equity Position reports to the overall stock portfolio on a weekly basis.
Commodity risk
Commodity risk arising from exposure of the changes in commodity prices. Commodity risk is determined
at group level and is measured through the ranks in various commodities. To measure and manage the
commodity risk using sensitivity analysis.
Sensitivity analysis of market risks
Sensitivity analysis captures the impact on profit / loss groups when moving market variables (interest
rates, exchange rates, stock prices, etc..)On a predetermined delta value. For monitoring and limiting
risk in the group used 100 basis points for interest rates to 5-percent movement in exchange rates and
50-percent move in share prices and a 30-percent movement in commodity prices.
GAP method to allocate the position of the baskets and examines what the group has a net position in
individual baskets. That method is used to manage interest rate risk. Stress scenario is similar to
sensitivity analysis, however, considering the extreme situation in the market. Combines movements in
market values so that the position of the group among them.
Group's sensitivity to movements in exchange rates is calculated in the following table, provided the
negative movement of the exchange rate by 5% against the group.
Change of the current value of assets and liabilities of the group related to exchange rate fluctuation of
the selected currencies detrimental to the group at 30 June 2010:
Current
Exchange rate Group position Group loss
in sensitivity
scenario in for the given
exchange
given currency scenario
rate value
USD 1,227 1,166 (142) (7)
GBP 25,691 24,406 (2 775) (139)
HUF 286,000 300,300 2 328 (116)
PLN 4,147 4,354 7 413 (371)
RON 4,370 4,589 4 238 (212)
CHF 1,328 1,262 (430) (22)
GBP 0,817 0,777 (511) (26)
Total 10 120 (892)
a
Change the current value of n commitme
assets d nts Groups to move exchange rate selected names
against a group of 31 December 2009:
Current
Exchange rate Group position Group loss
in sensitivity
scenario in for the given
exchange
given currency scenario
Ratevalue
USD 1,441 1,513 292 (15)
GBP 26,473 27,797 260 (13)
HUF 270,420 283,941 923 (46)
PLN 4,105 4,310 4 175 (209)
RON 4,236 4,448 6 733 (337)
Total 12 383 (619)
Group's sensitivity to interest rate movement is calculated in the following table, provided the negative
movement of the yield curve against a group of 100 basis points.
These notes are an integral part of the financial statements. 65
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Change the current values of assets and liabilities of the Group to change interest rates for selected
currencies at 30 June 2010:
Group loss
Yield
from
curve shift
yield curve shift
Commercial book:
EUR 100 BPV (463)
USD -100 BPV 100
Bank book:
EUR 100 BPV (8 277)
USD -100 BPV (371)
Total (9 011)
Change the current values of assets and liabilities of the Group to change interest rates for selected
currencies at 31 December 2009:
Group loss
Yield curve shift
from
yield curve shift
Commercial book:
EUR -100 BPV 1 101
USD -100 BPV (99)
Bank book:
EUR -100 BPV (2 276)
USD -100 BPV (316)
Total (1 590)
Change the current values of assets and liabilities of the trading
book groups to change share price at 30
June 2010:
The decline in
Volume of shares in the group commercial
stock prices Loss from the decline of prices
book
(In%) shares
48 50 (24)
Zmena current values assets and commitments Trade Books Groups to changeprices shares
31 December 2009:
The decline in stock prices Loss fromthe decline of prices
Volume of shares in the group
(In
commercial book
%) shares
93 50 46
Position groups in the trading book for commodities is zero, for that reason to change the current value
of assets and liabilities of the trading book group to changes in commodity prices is also zero at 30 June
2010, as was also at 31 December 2009.
Group in the sensitivity analysis to market risks calculated with adverse movements in exchange rates,
yield curves, respectively. with falling stock prices. In the event that these movements were reversed,
the group recorded a profit instead of loss in approximately the same estimated amount.
Liquidity risk
Liquidity risk is viewed as the risk of loss of the ability to meet its obligations when due.
Interest groups is consistently maintained its solvency, ie the ability to properly and timely manner to
meet financial obligations to manage the assets and liabilities so as to ensure continuous liquidity. For
liquidity management of the committee is responsible for managing the assets and liabilities ("ALCO")
and Treasury Department. ALCO for their weekly meetings regularly evaluates the liquidity of the group
and according to the current state then accepts the decision.
These notes are an integral part of the financial statements. 66
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The Group is exposed to the requirements of the available cash resources based on overnight deposits,
current accounts, ending deposits, borrowings, guarantees and requirements and additional payments
based on other requirements related to cash-settled derivatives. The Group does not hold sufficient
finance to meet all these requirements, since its experience indicates that a minimum level of payment of
outstanding funds can predict with a high degree of probability. Skupina determines limits on the
minimum portion of payable funds that are available to meet these requirements, as well as the
minimum level of interbank and other loan and credit limits, which should be available to cover
unforeseen spending výške.
Integrated risk management department monitors the daily liquidity of the group and inform its
development. Weekly presents information on the state of liquidity in the ALCO. Management unit's
assets and liabilities submitted to regular quarterly meetings of the ALCO report on the state structure of
assets and liabilities of the group for approval and proposal The quota amount and structure strategicky
portfolio securities held for the next reporting period.
The Group is obliged to operate so that at any time comply with the request and the coefficients of
liquidity provided by the National Bank of Slovakia. Given the developments in financial markets have
been the end of 2008, adjusted for liquidity requirements. At 30 June 2010 a group, these requirements
set by National Bank of Slovakia meet.
The Group pursues long-term liquidity risk compiling the liquidity crisis and the liquidity gap(3 scenarios)
compilation based on internally established rules and assumptions. Limits approvedintegrated risk
management department, ALCO and management groups.
Customer deposits are the primary source of funding for the group. Even if conditions allow clients to
deposit most of their choice with no prior notice, existing resources represent a stable source of funding.
These notes are an integral part of the financial statements. 67
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The liquidity position of the current account of the residual maturity of assets and liabilities as at 30 June
2010:
To 12 Over 12
Unspecified Total
months months
Cash and deposits in central
banks 264 163 - - 264 163
Loans and current accounts
granted to banks
405 910 45 107 2 602 453 619
Loans to customers, net 2 035 278 3 010 179 210 704 5 256 161
Financial assets for trading 190 621 250 511 181 441 313
Financial assets at fair value
revalued through profit
and loss statement 17 614 130 223 - 147 837
Financial assets held to
maturity 838 962 1 264 589 - 2 103 551
Financial assets held for sale - - 644 644
Shares in subsidiaries
and affiliated companies - - 11 395 11 395
Intangible assets - - 33 485 33 485
Tangible assets - - 82 551 82 551
Current tax asset - - 4 833 4 833
Deferred tax asset - - 15 237 15 237
Other assets 8 650 - 14 098 22 748
Total Assets 3 761 198 4 700 609 375 730 8 837 537
Liabilities
Deposits and current accounts of
banks 14 156 39 865 631 54 652
Client deposits 1) 3 590 688 3 178 455 29 142 6 798 285
Financial liabilities for
trading 28 114 121 487 - 149 601
Debt securities liabilities
354 105 516 595 - 870 700
Provisions for liabilities - - 31 820 31 820
Tax due liability - - 58 58
Deferred tax liability - - 777 777
Other liabilities - - 32 230 32 230
Subordinated debt 353 120 000 - 120 353
Total liabilities 3 987 416 3 976 402 94 658 8 058 476
Equity (excluding profit
for the current year) - - 743 863 743 863
Profit after tax - - 35 198 35 198
Liabilities and equity
total 3 987 416 3 976 402 873 719 8 837 537
Balance sheet position, net (226 218) 724 207 (497 989) -
Off-balance sheet position, net
2) (2 206 775) (180) 152 821 (2 054 134)
Cumulative balance sheet
and off-balance sheet
position (2 432 993) (1 708 966) (2 054 134) (2 054 134)
1) Value of current accounts and savings books are recognized by the estimated maturity model
2) Off-balance sheet position includes assets and liabilities of spot transactions, from transactions in financial
derivatives, which involve the exchange of the underlying instrument of future borrowings, guarantees and letters
of credit from a delta equivalents of options.
These notes are an integral part of the financial statements. 68
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The liquidity position of the current account of the residual maturity of assets and liabilities as at 31December
2009:
To 12 Over 12
Unspecified Total
months months
Cash and deposits in central
banks 165 514 - - 165 514
Loans and current accounts
granted to
Banks 1 017 022 45 110 4 605 1 066 737
Loans to customers, net 2 004 739 3 097 109 218 443 5 320 291
Financial assets for trading 260 729 285 039 459 546 227
Financial assets at fair value
revalued through profit and loss
statemen
t 66 480 142 670 - 209 150
Financial assets held to
maturity 382 701 1 141 593 - 1 524 294
Financial assets held for sale - - 644 644
Investments in
affiliated companies
- - 11 477 11 477
Intangible assets - - 34 870 34 870
Tangible assets - - 84 054 84 054
Current tax assets - - 13 453 13 453
Deferred tax assets - - 13 567 13 567
Other assets 9 216 - 14 447 23 663
Total Assets 3 906 401 4 711 521 396 019 9 013 941
Liabilities
Deposits and current accounts of
banks 72 235 29 997 1 216 103 448
Client deposits 1) 4 329 277 2 364 103 22 942 6 716 322
Financial liabilities
from
trading 26 452 104 140 - 130 592
Liabilities from debt securities
687 644 381 974 - 1 069 618
Provisions for liabilities - - 31 880 31 880
Current Tax liability - - 146 146
Deferred tax liability - - 749 749
Other liabilities - - 32 580 32 580
Subordinated debt 373 120 000 - 120 373
Total liabilities 5 115 981 3 000 214 89 513 8 205 708
Equity (excluding profit
for the current year) - - 713 349 713 349
Profit after tax - - 94 884 94 884
Liabilities and equity
total 5 115 981 3 000 214 897 746 9 013 941
Balance sheet position, net (1 209 580) 1 711 307 (501 727) -
Off-balance sheet position, net 2) (2 251 223) (656) (2 601) (2 254 480)
Cumulative balance sheet
and off-balance sheet
position (3 460 803) (1 750 152) (2 254 480) (2 254 480)
1) Value of current accounts and savings books are recognized by the estimated maturity model
2) Off-balance sheet position includes assets and liabilities of spot transactions, from transactions in financial
derivatives, which involve the exchange of the underlying instrument of future borrowings, guarantees and letters
of credit from a delta equivalents of options.
These notes are an integral part of the financial statements. 69
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The following overview shows the analysis for the earliestpossible maturity of financialliabilities, ie, in the worstpossiblescenario for30.June2010
(In undiscounted value):
Residual maturity
Contractual From 3 months More than
Accounting Within 3 months From 1 to 5 years 5
cash 1 year
value including including years, including
includin
flows g
Non-derivative financial liabilities:
Deposits and current accounts of banks 54 652 53 272 11 199 5 232 24 290 12 551
Customer deposits 6 798 285 6 807 439 5 881 246 465 374 456 997 3 822
Debt securities 870 700 979 416 216 541 167 535 595 340 -
Other liabilities 32 230 32 230 32 230 - - -
Subordinated debt 120 353 122 792 318 735 121 739 -
Derivative financial liabilities:
Derivatives 149 601 1 613 220 1 009 006 376 934 186 916 40 364
The following overview shows the contractual maturity analysis of future commitments and other off-balance sheet items in the worst case scenario at 30 June
2010 (in undiscounted value):
Residual maturity
Contractual From 3 months
Accounting Within 3 months From 1 to 5 years More than 5
cash 1 year
value including including years, including
flows including
Future liabilities and other off-balance sheet items:
Future liabilities from guarantees 430 838 430 838 430 838 - - -
Future liabilities from letters of credit 40 157 40 157 40 157 - - -
The irrevocable standby credits 1 582 345 1 582 345 623 280 554 650 157 319 247 096
These notes are an integral part of the financial statements. 70
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The following overview shows the analysis of the earliest possible contractual maturity of financial commitments, ie the worst scenario at 31 December 2009
(In undiscounted value):
Residual maturity
Contractual Within 3 From 3 months
Accounting months From 1 to 5 years More than 5
cash 1 year
value including including years, including
flows including
Non-derivative financial liabilities:
12
Deposits and current accounts of banks 103 448 104 429 69 580 3 018 18 969 862
Customer deposits 6 716 322 6 725 948 5 801 685 533 976 388 052 2 235
Debt securities 1 069 618 1 116 205 133 457 574 266 408 482 -
Other liabilities 32 580 32 580 32 580 - - -
Subordinated debt 120 373 131 085 771 2 313 128 001 -
Derivative financial liabilities:
Derivatives 49
130 592 1 791 441 1 105 844 405 761 230 170 666
The following overview shows the contractual maturity analysis of future commitments and other off-balance sheet items in the worst case scenario of 31
December 2009 (in undiscounted value):
Residual maturity
Contractual From 3 months
Accounting Within 3 months From 1 to 5 years More than 5
Cash 1 year
value including including years, including
Flows including
Future commitments and other off-balance sheet
items:
Future liabilities from guarantees 419 981 419 981 419 981 - - -
Future liabilities from letters of credit 28 821 28 821 21 364 1 421 6 036 -
The irrevocable standby credits 1 607 687 1 607 687 499 005 719 767 350 249 38 666
These notes are an integral part of the financial statements. 71
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
Operational risk
Operational risk is the risk arising from inadequate or failed processes, human error failures, failures of
the systems or from external events; part of operational risk, legal risk, which means the risk arising
mainly from irrecoverability zmlúv, threats of unsuccessful legal proceedings or judgments with negative
effects the group. As with other types of risk and operational risk is a standard principle of functional
separation of risk management and controlling.
For the purposes of calculating the corresponding requirement for own funds to cover operational risk
group uses a standardized approach in accordance with the requirements of Basel II and the Banking
Act. The Standardised Approach are the group's activities and their respective Gross Income divided into
8 business lines (Business Lines). For each business line is its general indicator of Gross Income, which
serves as the representative of a range of business activities, and thus is a measure of operational risk
for each business line. Capital for operational risk is calculated as the value of net interest income and
net non-interest income multiplied by a factor ß allocated for each business line separately. The total
capital requirement arises sum of eight sub-requirements for each business line and averaging over the
last three years.
Group uses to identify operational rizík three-dimensional model, which consists of categories of risk,
part of the process and business lines (Methodology Risk Management Association). Collection of data on
operational events include the collection of all operational losses in the individual points in this three-
dimensional model.
The group places emphasis on improving quality processes and measures to reduce operational risks.
Basic goals are based on the expected knowledge of operational risks and an overall culture of a group of
operational risk.
As additional tools for management of operational risk the Group uses Key Risk Indicators and Self-
Assessment of operational risk, which serves to identify, analyze and monitor the areas with increased
operational risk.
The group is also actively so. Business Continuity Plans. The aim of these plans is to minimize the impact
of unexpected events on the group's work.
The future objective is the implementation of the advanced model of operational risk management.
Other risks
The Group also in terms of implementation of internal process for setting capital adequacy monitor and
develop methods of quantification and management and other risks, in particular:
strategic risk
reputation risk
risks and other risk factors.
Basel II
Group consistently meets the requirements of European directives implementing rules known as Basel II,
and in their implementation based on local legal norms in particular the amendment of Act no. 483/2001
Z. z. Banking and NBS no. 4 / 2007 in terms of his amendment no. 17/2008.
The concept, methodology and documentation for activities in the area of Basel II will be developed in
close cooperation with RZB and Raiffeisen International Bank - Holding AG while retaining the local
characteristics of the group and the group environment.
The aim of the implementation of Basel II is primarily to ensure the most accurate assessment and
proper management of credit, market and operational risks. Achieving this target is also based primarily
on ensuring high quality data collection and storage of all relevant and potentially relevant data, in the
elaboration of reliable methodology for measuring different types of hazards, to ensure efficient and
quality processes for the prudent management of individual types of risk to ensure quality and secure IT
systems for automating processes to collect and analyze data, calculations and providing outputs.
These notes are an integral part of the financial statements. 72
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
The aim of the group is to move as soon as possible to use advanced approaches to management,
quantification and reporting of risks. In the case of credit risk is to the implementation of the IRB
approach to the use of internal rating models. The date of the financial statements were approved by the
group to calculate the capital requirement for neretailovú part of the portfolio underlying the IRB
approach.
I RB approach is used for sovereign entities, institutions, corporate entities, project financing, insurance,
investments in funds and assets purchased from 1 January 2009. Group during the second quarter of 2010
began to be used to calculate capital requirements for retail portfolio of the IRB approach. SME portfolio
for the approval process will take place shortly.
The Group continuously adjusts as the methodology and the procedural and the Pillar 2 (the internal
process for setting capital adequacy) in the context of its risk appetite and conducted business activities.
As part of this process in terms of approved methodologies on a regular basis carries out evaluation of
the relevance and materiality of the risks, their quantification and assessment of capital to the group and
subsequent Reporting.Forms an integral part of the process allocation capital, which is closely linked
with the budgeting process.
Because transition to advanced way risk measurement and Capital adequacy (in terms of Pillar 1 and
pillar 2) and changes in the economic environment is an important aspect of consistent prediction of the
development of capital adequacy as well as its stress testing to eliminate the impact of unforeseen
events as well as an effective capital plan. Information about individual group risk and capital account of
the actual management of the group and its business strategy to achieve the optimal compromise
between reducing the types of risk and increasing market share, profits and return on capital.
49. Events after the balance sheet date
Between the balance sheet date and the date of approval of these financial statements at issue did not
reveal any significant events that would require additional treatment or recognition.
These notes are an integral part of the financial statements. 73
Tatra banka, as
Notes to the interim consolidated financial statements at 30 June 2010 prepared
under International Financial Reporting Standards,
as approved by the European
Union (in thousands of euros)
50. Approval of the interim consolidated financial statements
General purpose financial statements for the immediately preceding financial year (to December 31,
2009) was signed and approved for release on 3 March 2010.
The financial statements were signed and approved for publication 23rd August 2010.
These notes are an integral part of the financial statements. 74