Vseobecna uverova banka : Interim Condensed Consolidated Financial Statements

Interim condensed consolidated financial statements

for the six months ended 30 June 2022

Prepared in accordance with International Accounting Standard

IAS 34 Interim Financial Reporting

Contents
Consolidated statement of financial position as at 30 June 2022 ..................................................................................	2
Consolidated statement of profit or loss and other comprehensive income for the six months ended 30 June 2022	... 3
Consolidated statement of changes in equity for the six months ended 30 June 2022 .................................................	4
Consolidated statement of cash flows for the six months ended 30 June 2022 ............................................................	6
1.	Basis of preparation .............................................................................................................................................	8
2.	Changes in accounting policies..........................................................................................................................	12
3.	Significant accounting policies ...........................................................................................................................	15
4.	Financial and operational risk management.......................................................................................................	33
5.	Estimated fair value of financial assets and financial liabilities.........................................................................	102
6.	Segment reporting ...........................................................................................................................................	106
7.	Cash and cash equivalents ..............................................................................................................................	109
8.	Financial assets and financial liabilities at fair value through profit or loss .......................................................	109
9.	Derivatives - Hedge accounting ......................................................................................................................	111
10.	Financial assets at fair value through other comprehensive income ................................................................	116
11.	Financial assets and financial liabilities at amortised cost................................................................................	117
12.	Fair value changes of the hedged items in portfolio hedge of interest rate risk................................................	120
13.	Investments in joint ventures and associates...................................................................................................	120
14.	Property and equipment and Non-current assets classified as held for sale....................................................	121
15.	Intangible assets ..............................................................................................................................................	122
16.	Goodwill ...........................................................................................................................................................	122
17.	Current and deferred income tax assets and liabilities.....................................................................................	123
18.	Other assets.....................................................................................................................................................	123
19.	Provisions ........................................................................................................................................................	124
20.	Other liabilities .................................................................................................................................................	124
21.	Movements in impairment losses and provisions for financial guarantees and commitments..........................	125
22.	Equity ...............................................................................................................................................................	126
23.	Financial commitments and contingencies.......................................................................................................	130
24.	Net interest income ..........................................................................................................................................	131
25.	Net fee and commission income ......................................................................................................................	132
26.	Net trading result..............................................................................................................................................	134
27.	Other operating income....................................................................................................................................	134
28.	Other operating expenses................................................................................................................................	134
29.	Salaries and employee benefits .......................................................................................................................	135
30.	Other administrative expenses.........................................................................................................................	135
31.	Provisions ........................................................................................................................................................	136
32.	Impairment losses and Net loss arising from the derecognition of financial assets at amortised cost .............	136
33.	Income tax expense .........................................................................................................................................	136
34.	Other comprehensive income ..........................................................................................................................	137
35.	Income tax effects relating to other comprehensive income ............................................................................	138
36.	Related parties .................................................................................................................................................	139
37.	Events after the end of the reporting period .....................................................................................................	145

1

Consolidated statement of financial position as at 30 June 2022 (In thousands of euro)

			June		December
	Note	2022	2021
Assets
Cash and cash equivalents	7		3 115 522	2 612 787
Financial assets at fair value through profit or loss:	8
Financial assets held for trading			47 119	30 064
Non-trading financial assets at fair value
through profit or loss			6 762	7 316
Derivatives - Hedge accounting	9		195 269	55 574
Financial assets at fair value through other comprehensive income	10		1 493 029	1 671 403
of which pledged as collateral			1 374 291	1 549 666
Financial assets at amortised cost:	11
Due from other banks			1 846 229	1 819 392
of which pledged as collateral			1 653 303	1 649 805
Due from customers			16 991 386	16 659 876
of which pledged as collateral			102 049	-
Fair value changes of the hedged items
in portfolio hedge of interest rate risk	12		(47 456)	3 301
Investments in joint ventures and associates	13		10 436	18 090
Property and equipment	14		113 059	122 597
Intangible assets	15		127 689	131 776
Goodwill	16		29 305	29 305
Current income tax assets	17		52	1 594
Deferred income tax assets	17		57 156	55 471
Other assets	18		25 142	23 794
Non-current assets classified as held for sale	14		5 946		515
			24 016 645	23 242 855
Liabilities
Financial liabilities at fair value through profit or loss:	8
Financial liabilities held for trading			46 305	30 863
Derivatives - Hedge accounting	9		195 133	31 510
Financial liabilities at amortised cost:	11
Due to banks			3 372 651	3 314 948
Due to customers			14 147 642	13 952 765
Lease liabilities			19 559	19 133
Subordinated debt			200 152	200 150
Debt securities in issue			4 151 235	3 829 056
Fair value changes of the hedged items
in portfolio hedge of interest rate risk	12		(11 420)	2 816
Current income tax liabilities	17		19 888	12 018
Provisions	19		20 669	25 061
Other liabilities	20		86 676		89 611
			22 248 490	21 507 931
Equity	22
Share capital			430 819	430 819
Share premium			13 719	13 719
Legal reserve fund			87 493	89 778
Retained earnings			1 231 462	1 175 583
Equity reserves			4 662		25 025
			1 768 155		1 734 924
			24 016 645	23 242 855

The accompanying notes on pages 8 to 145 form an integral part of these financial statements.

2

Consolidated statement of profit or loss and other comprehensive income

for the six months ended 30 June 2022 (In thousands of euro)

			June
	Note	2022
Interest income calculated using the effective interest method			180 386
Other interest income			2 315
Interest and similar expense			(34 942)
Net interest income	24		147 759
Fee and commission income			98 771
Fee and commission expense			(16 149)
Net fee and commission income	25		82 622
Net trading result	26		6 705
Other operating income	27		3 706
Other operating expenses	28		(21 767)
Salaries and employee benefits	29		(59 767)
Other administrative expenses	30		(37 055)
Amortisation	15		(9 019)
Depreciation	14		(7 180)
Profit before provisions, impairment and tax			106 004
Net modification gains or losses			(17)
Provisions	19, 31		(63)
Impairment losses	21, 32		(30 920)
Net loss arising from the derecognition
of financial assets at amortised cost	32		8 387
			83 391
Share of the profit or loss of investments in joint ventures
and associates accounted for using the equity method			1 306
Profit before tax			84 697
Income tax expense	33		(20 932)
NET PROFIT FOR THE SIX MONTHS			63 765
Other comprehensive income for the six months, after tax:	34, 35
Items that shall not be reclassified to profit or loss in the future:
Change in value of financial assets at fair value
through other comprehensive income (equity instruments)			(541)
			(541)
Items that may be reclassified to profit or loss in the future:
Change in value of financial assets at fair value
through other comprehensive income (debt instruments)			(19 730)
Exchange difference on translation of foreign operations			(92)
			(19 822)
Other comprehensive income for the six months, net of tax			(20 363)
TOTAL COMPREHENSIVE INCOME FOR THE SIX MONTHS			43 402

The accompanying notes on pages 8 to 145 form an integral part of these financial statements.

June 2021

1. 673

1. 775

(15 401)

140 047

82 451

(13 070)

69 381

1. 064

1. 517

(18 160)

(60 574)

(35 339) (8 072) (7 975)

95 889

(46)

(82)

(20 574)

(1 631)

73 556

1. 804

1. 360

(17 420)

60 940

460

460

(5 313) (22)

(5 335)

(4 875)

56 065

3

Consolidated statement of changes in equity for the six months ended 30 June 2022

(In thousands of euro)

										Revaluation
						Legal				surplus of		Financial				Translation
		Share		Share		reserve		Retained		buildings		assets at		Cash flow		of foreign
		capital		premium		fund		earnings		and land		FVOCI		hedges		operation		Total
At 31 December 2021
430 819		13 719		89 778		1 175 583		17 215		7 710		-		100		1 734 924
VUB Leasing Merger		-		-		(2 285)		2 608		-		-		-		-		323
At 1 January 2022	430 819		13 719		87 493		1 178 191		17 215		7 710		-		100		1 735 247
Total comprehensive income
for the six months, net of tax	-		-		-		63 765		-		(20 271)		-		(92)		43 402
Losses on the sale
of shares at FVOCI	-		-		-		-		-		-		-		-		-
Gain on disposal of
property and equipment	-		-		-		-		-		-		-		-		-
Exchange difference	-		-		-		(104)		-		-		-		-		(104)
Transactions with owners,
recorded directly in equity
Dividends to shareholders	-		-		-		(10 534)		-		-		-		-		(10 534)
Reversal of dividends distributed
but not collected		-		-		-		144		-		-		-		-		144
At 30 June 2022	430 819		13 719		87 493		1 231 462		17 215		(12 561)		-		8		1 768 155

(Table continues on the next page)

The accompanying notes on pages 8 to 145 form an integral part of these financial statements.

4