Annual Report 2016

Statement of Changes in Equity

For the year ended 31 December

In CZK millionShare capitalRevaluation - financial assets AFSrevaluation – Land and buildingsReserve fundTranslation reserveEqualisation reserve fund1Other fundsRetained earningsTotal
Balance as at 1 January 20154,0004,037800(7)54914,16923,548
Net profit for the year4,0924,092
Adjustment of the net profit (correction of prior year error)(68)(68)
Exchange rate differences in equity(1)101423
Available-for-sale financial assets revaluation in equity1,4051,405
Available-for-sale financial assets revaluation realised in income statement(496)(496)
Available-for-sale impairment losses369369
Tax on items of other comprehensive income(243)(243)
Total Comprehensive income (restated)1,034104,0385,082
Dividends to shareholder(3,272)(3,272)
Share-based payment reserve99
Changes in catastrophe and equalisation reserve(512)512
Balance as at 31 December 2015 (restated)4,0005,071800337915,44725,367
Net profit for the year4,1714,171
Exchange rate differences in equity(2)4240
Available-for-sale financial assets revaluation in equity1,6651,665
Available-for-sale financial assets revaluation realised in income statement(1,003)(1,003)
Available-for-sale impairment losses330330
Tax on items of other comprehensive income(188)(188)
Total Comprehensive income804(2)4,2135,015
Dividends to shareholder(3,684)(3684)
Share-based payment reserve1616
Changes in catastrophe and equalisation reserve(37)37
Balance as at 31 December 20164,0005,87580012516,01326,714

1 Equalisation reserve was required under local insurance legislation till 2015 and was classified as a separate part of equity within these accounts as it does not meet the definition of a liability under IFRS. It was not available for distribution. Change in equalisation reserve was realised as a transfer between distributable retained earnings and non-distributable equalisation reserve fund in equity. Since 2016 equalisation reserve is not allowed under local insurance legislation and that is why it was released as at 31 December 2016.The decrease of equalization reserve in 2015 was result of the calculation method prescribed by legislation. Maximum balance of the reserve is based on credit insurance premium within five year period.

XLS