Annual unaudited unconsolidated financial statements 2002 for NLB under SAS

Transcription

1 Annual unaudited unconsolidated financial statements 2002 for NLB under SAS Nova Ljubljanska banka d.d., Ljubljana on the basis of Securities Market Act (SMA 1, Ur.l. RS, no. 56/99) and Exchange's Articles publishes Unaudited Unconsolidated Financial Statements for the year 2002 with important notes. Unaudited Annual Financial Statements for NLB d.d. and NLB Group will be reviewed on March 3, 2003 by NLB Supervisory board on their regular meeting. Notes of 2002 NLB financial performance NLB concluded the year 2002 with a solid result. NLB s total assets amounted to 1,618.8 billion tolars at 2002 year-end and increased by 5.8 per cent in line with the plan. The balance sheet was marked significantly by increased customer lending activity, which reached billion tolars by the end of Customer loans rose for 69.7 billion tolars. Due to less favorable economic conditions and law restrictions, the expected growth wasn t achieved in full size. Customer deposits recorded 1,097.8 billion tolars at the end of the year. The Bank reached pre-tax profit of 6.28 billion tolars, which is 9.5 per cent less than the plan. Net interest income increased by 13.2 per cent reaching 35.7 billion tolars. The reduction of the interest margins resulted in 4.5 billion tolars difference compared to plan. This was replaced by higher net non-interest income (32.0 billion tolars and 1.5 per cent over plan) and lower operating costs (46.1 billion tolars, 97.5 per cent of plan). Considering the growth and structure of investment portfolio, NLB formed provisions from net operating income presenting 8.98 billion tolars, exceeding the plan for 10.6 per cent. Capital of the Bank amounted to billion tolars on December 31, 2002, presenting 7,682,015 ordinary shares. Book value of a share reached 14,614 tolars. Net profit per share increased from 788 tolars at the end of 2001 to 818 tolars at the end of December Capital adequacy ratio improved by 1.3 percentage points compared to the end of 2001 and is estimated at 10.4 per cent. Management Board of the Bank suggested the transfer of net profit to other profit reserves in the amount of 3,140,066.6 thousand tolars, where suggested profit disposition will be final only after the approval from Supervisory Board. NLB s unaudited balance sheet profit amounted to 3,195,766.6 thousand tolars. As at July 16, 2002 a new five-member Management Board was nominated for a five-year period in the following structure: president Marko Voljč and members Andrej Hazabent, Matej Narat and Borut Stanič. Additionally the fifth member Pierre Van Keirsbilck was nominated after the privatisation process concluded on September 6, Supervisory Board members (Zvonko Ivanušič, Jože Lenič, Igor Kušar, Uroš Slavinec and Metka Tekavčič) were appointed for their four-year mandate on July 27, 2001, while representatives of KBC and EBRD and the Chairmain Anton Žunič began their mandate on September 6, All Supervisory Board members conclude their mandate within a four-year period. Financial Statements for 2002 are prepared in accordance with new Slovene Accounting Standards (SAS) and Bank of Slovenia s regulations. The system of capital revaluation was abolished. According to SAS, capital investments are now valuated by the capital method. By the Bank of Slovenia s new regulations, securities are no longer valuated at book value but at the market value. On the basis of explanations from the Slovene institute for audit, SAS 24 and 25, balance sheet and income statement for 2001 are not translated to new SAS. The data is logically adjusted to the renewed schemes. Revaluation items are stated in the income statement where necessary. The revaluation of capital, capital investments and fixed assets is disclosed under extraordinary profit (loss) as extraordinary expense due to capital revaluation. Also 2001 cash statement is reformed on the base of new methodology concept.

2 BALANCE SHEET Cash and balances with the Central Bank 55,350,465 79,219,764 Placements with, and loans to, other banks 130,968, ,210,152 Loans and advances to customers 705,075, ,397,416 Debt securities not held for trading 479,910, ,241,521 Securities held for trading 121,272,288 72,260,029 Investments in subsidiaries, associated and jointly controlled companies 40,246,255 36,136,537 Investments in other companies 1,314,128 2,142,233 Intangible assets 11,279,664 5,702,639 Property and equipment 41,217,771 39,698,944 Own shares - 50,254 Other assets 19,027,254 20,023,091 Accrued income and deferred expenses 13,093,331 8,573,441 TOTAL ASSETS 1,618,756,039 1,376,656,021 Deposits and borrowings from banks 210,393, ,532,783 Deposits and borrowings from other customers 1,118,591, ,505,927 Debt securities 76,354,631 22,131,249 Other liabilities 18,461,307 22,729,558 Accruals and deferred income 17,807,825 15,720,913 Provisions for liabilities and charges 27,790,206 21,733,738 Provisions for general banking risks 2,228,617 3,428,616 Subordinated liabilities 34,540,095 13,284,570 Subscribed capital 15,364,030 15,364,030 Equity reserves 13,603,376 13,547,242 Profit reserves 60,540,101 60,569,523 Capital revaluation adjustment 16,745,629 11,791,560 - General capital revaluation adjustment 11,791,560 11,791,560 - Specific capital revaluation adjustment 4,954,069 - Retained earnings 55,7 - Net profit for the period 6,280,133* 3,316,312 TOTAL LIABILITIES 1,618,756,039 1,376,656,021 Off-Balance Sheet 1,410,118, ,959,129 Contingent liabilities arising from letters of credit and endorsements 24,477,376 21,454,985 Guarantees and assets pledged as collateral 383,773, ,849,589 Contingent financial liabilities 290,349, ,242,237 Derivative financial instruments 711,517, ,412,318 * In line with 3/228 code of Company Act, NLB Supervisory Board will approve the distribution of net profit for 2002 on the next meeting on the base of Management Board suggestion.

3 INCOME STATEMENT Interest and similar income 104,577,277 89,993,216 Interest and similar expenses (68,881,730) (58,450,643) Net interest and similar income 35,695,547 31,542,573 Income from capital and other investments 11,282,147 5,984,448 Fees and commissions income 25,147,666 15,674,416 Fees and commissions expenses (4,231,152) (3,198,763) Net fees and commissions 20,916,514 12,475,653 Gains from financial transactions 68,074,929 58,613,449 Losses from financial transactions (70,236,147) (57,271,001) Net profit from financial transactions (2,161,218) 1,342,448 Other operating income 3,139,222 3,852,366 Employee costs (23,143,242) (16,958,742) Cost of material and services (17,492,925) (12,383,460) Depreciation and revaluation expenses from property, equipment and intangible assets (5,456,749) (4,938,102) Other operating expenses (1,238,826) (404,748) Net provisions for bad and doubtful debts and write offs less any recoveries (10,183,060) (5,715,549) Net provisions for general banking risks 1,200,000 (892,245) OPERATING PROFIT 12,557,410 13,904,642 Extraordinary income 41,935 38,623 Extraordinary expenses (17,138) (1,806,357) - Extraordinary expenses (17,138) (8,589) - Extraordinary expense due to capital revaluation - (1,797,768) Extraordinary profit (loss) 24,797 (1,767,734) PROFIT BEFORE TAX 12,582,207 12,136,908 Tax on profit (5,453,633) (4,740,534) Other taxes (848,441) (1,342,362) NET PROFIT FOR THE PERIOD 6,280,133 6,054,012

4 CASH FLOW STATEMENT CASH FLOWS FROM OPERATING ACTIVITIES Inflows from operating activities 129,568, ,229,701 Interest and similar income 88,266,880 74,352,567 Fees and commissions income 25,219,174 15,520,823 Recoveries from loans previously written off 905, ,581 Income from capital and other investments 8,782,691 3,535,027 Net profit from finance transaction 3,597,572 4,857,448 Other operating income 2,796,780 3,847,255 Outflows from operating activities (115,267,669) (89,408,310) Interest and similar expenses (62,327,324) (51,203,628) Fees and commissions expenses (4,594,541) (3,104,197) Employee costs (22,056,122) (16,558,888) Material and services costs (16,522,385) (11,979,835) Other operating expenses (2,271,439) (361,277) Taxation paid (7,495,858) (6,200,485) Operating income before changes in operating assets and liabilities 14,300,559 12,821,391 Increase in operating assets (72,276,619) (54,968,867) Net (increase)/decrease in loans to banks (6,753,997) 13,014,854 Net increase in loans and advances to customers (67,651,257) (62,782,842) Net decrease in securities held for trading 102,908 1,040,020 Net decrease/(increase) in other operating assets 2,025,727 (6,240,899) Increase/(decrease) in operating liabilities 123,100, ,884,926 Net increase in deposits from banks 3,221,746 23,474,989 Net increase in deposits from other customers 126,490, ,536,858 Net (decrease)/increase in other operating liabilities (6,611,839) 4,873,079 Net inflow from operating activities 65,123, ,737,450 CASH FLOWS FROM INVESTING ACTIVITIES Inflows from investing activities 332,602, ,627,747 Sale of debt securities 326,352, ,829,779 Sale of investment in subsidiaries, associated companies and other companies 5,843, ,528 Sale of property, equipment and intangible assets 406, ,440 Outflows from investing activities (426,472,325) (220,234,411) Purchase of debt securities (412,228,028) (209,750,254) Purchase of investments in subsidiaries, associated companies and other companies (1,780,741) (349,597) Purchase of property, equipment and intangible assets (12,463,556) (10,134,560) Net inflow or net outflow from investing activities (93,869,433) 8,393,336 CASH FLOWS FROM FINANCING ACTIVITIES Inflows from financing activities 283,855, ,675,906 Borrowings from banks and other customers 199,369, ,177,764 Increase in debt securities and subordinated liabilities 84,379,795 21,490,615 Sale of own shares 106,387 7,527 Outflows from financing activities (200,652,259) (627,235,929) Dividends paid (3,291,962) (2,046,000) Debts repayment (186,756,657) (606,276,005) Decrease in debt securities and subordinated liabilities (10,603,640) (18,913,924) Net inflow or net outflow from financing activities 83,203,585 (37,560,023) CASH AND CASH EQUIVALENTS AT END OF PERIOD 512,952, ,887,910 Financial result for the period 61,064, ,207,797 Increase in cash and cash equivalents following the acquisition of subsidiaries - 52,399,001 Cash and cash equivalents at beginning of period 451,887, ,281,112

5 STATEMENTS OF CHANGES IN EQUITY Subscribed capital Equity Own shares reserves Profit reserves fund Retained earnings General capital revaluation adjustment Specific capital revaluation adjustment Net profit for the period Total shareholders equity BALANCE at 1 JANUARY ,364,030 13,547,242 60,519,269 50,254-11,791,560-3,316, ,588,667 Transfers to equity - 56,134 1,755-5,446-4,954,069 6,280,133 11,297,537 Specific capital revaluation ,954,069-4,954,069 Net profit (loss) for the period ,280,133 6,280,133 Other - 56,134 1,755-5, ,335 Transfers within equity ,077 (50,254) 50, (19,077) - Allocation of net profit for the period (50,254) 50, Transfer of capital items to own shares fund , (19,077) - Transfers from equity (3,297,235) (3,297,235) Dividends paid (3,291,962) (3,291,962) Other (5,273) (5,273) BALANCE at 31 DECEMBER ,364,030 13,603,376 60,540,101-55,700 11,791,560 4,954,069 6,280,133* 112,588,969