ČESKÁ EXPORTNÍ BANKA
ANNUAL FINANCIAL REPORT
2024
24
24=
significant support to strategic segments
of the economy
increase in the annual volume of provided supported
financing products by 10% to CZK 7.565 billion
the most successful year for business
in the last 10 years
profit before tax of
CZK 936 million
successful cooperation
with the commercial banking sector
3
Introduction by the Chairman of the
Board of Directors
Dear shareholders, dear business partners,
2024 was a successful year for Česká exportní banka, a.s. (CEB, the Bank)
despite the many challenges it brought to the global, European, and Czech
economy. In line with the economic and export strategy of the Czech Republic,
CEB managed to support the increase in added value of export-oriented sectors
of the economy and to promote the international competitiveness of Czech
exports and the international expansion of Czech investors in foreign markets.
In 2024, CEB succeeded in meeting its strategic objectives. The Bank's business
activities emphasised the support of export-oriented companies, not only in
the traditional segments of engineering, defence and security, or transport,
but also in other growth segments of the high-added-value economy, such as
information and communication technologies. Last year, CEB provided a total
of CZK 7.565 billion in financing products to support Czech export-oriented
companies and Czech investors expanding abroad, which represents growth
by 10% compared to 2023. In terms of financial volume of signed contracts,
this has been the best result since 2015. The Bank's responsible approach to
operating costs and favourable market factors were also reflected in improved
profitability indicators and a profit before tax exceeding CZK 900 million.
An important aspect in meeting the needs of Czech export-oriented companies
continues to be the close cooperation between CEB and the commercial banking
sector, especially in the club and syndicated financing area, and the deepening
cooperation with the National Development Bank of the Czech republic (NDB)
as part of the ongoing integration process aimed at creating a capital-intensive
banking group to support SMEs, exports, and the financing of infrastructure
projects.
Following the amendment to Act No. 58/1995 Coll., on Insurance and Financing
of Exports with State Support, which came into force at the end of 2022 and
enabled CEB to introduce completely new products aimed at supporting Czech
export-oriented companies, another groundbreaking amendment to Act No.
58/1995 Coll. successfully passed through the legislative process in 2024
and will enable CEB to finance domestic supplies of Czech companies to their
foreign customers operating in the Czech Republic. Expanding the definition
of exports will thus strengthen the ability of Czech companies to participate
in the supply of strategic projects in the field of nuclear energy, defence and
security, and new technologies during 2025. CEB's product oer is now similar
to that of foreign export banks and agencies that support exports in competing
economies.
Dear shareholders, dear business partners, I would like to thank you for your
cooperation in 2024. At the same time, I would like to thank the employees of
Česká exportní banka, a.s. for their work, eort, and determination to continue
to transform CEB into a modern and dynamic financial institution.
Ing. Daniel Krumpolc
Chairman of the Board of Directors and CEO
4
KPMG Česká republika Audit, s.r.o., a Czech limited liability company and a member firm of
t
he KPMG global organization of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee.
Recorded in the Commercial Register kept by the
Municipal Court in Prague, Section C, Insert No. 24185
Identification No. 49619187
VAT No. CZ699001996
ID data box: 8h3gtra
KPMG Česká republika Audit, s.r.o.
Pobřežní 1a
186 00 Praha 8
Czech Republic
+420 222 123 111
www.kpmg.cz
This document is an unsigned English translation of the Czech independent auditor’s report that we issued on 20 March 2025 on
the statutory financial statements included in the annual financial report of Česká exportní banka, a.s., prepared in accordance with
the provisions of Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of
the European Parliament and of the Council with regard to regulatory technical standards on the specification of a single electronic
reporting format (“the ESEF Regulation”), related to the financial statements. The accompanying annual financial report does not
represent a statutory annual financial report. Consequently, neither it nor this copy of the auditor’s report is a legally binding
document. We did not audit the consistency of the accompanying annual financial report with the statutory and legally binding
annual financial report under the ESEF Regulation in Czech, and therefore we do not provide an opinion on the accompanying
annual financial report.
Independent Auditor’s Report
to the Shareholders of Česká exportní banka, a.s.
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of Česká exportní banka, a.s. (“the Company”),
prepared in accordance with IFRS Accounting Standards as adopted by the European Union, which
comprise the statement of financial position as at 31 December 2024, the income statement, the
statement of comprehensive income, the statement of changes in equity and the cash flow statement for
the year then ended, and notes to the financial statements, comprising material accounting policies and
other explanatory information. Information about the Company is set out in Note 1 to the financial
statements.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of
the Company as at 31 December 2024/balance sheet date, and of its financial performance and its cash
flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the
European Union.
Basis for Opinion
We conducted our audit in accordance with the Act on Auditors, Regulation (EU) No. 537/2014 of the
European Parliament and of the Council, and Auditing Standards of the Chamber of Auditors of the
Czech Republic, consisting of International Standards on Auditing (ISAs), which may be supplemented
and amended by relevant application guidelines. Our responsibilities under those regulations are further
described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the Act on Auditors and the Code of Ethics
adopted by the Chamber of Auditors of the Czech Republic, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
5
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of
our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Impairment allowances for loans and provisions for commitments and
g
uarantees
As at 31 December 2024, gross loans and advances to customers amount to CZK 18,468 million and
related impairment allowance amounts to CZK 282 million; loan commitments provided to customers
amount to CZK 4,914 million and related impairment provision amounts to CZK 68 million, financial
guarantees provided to customers amount to CZK 1 115 million and related impairment provision
amounts to CZK 19 million (as at 31 December 2023, loans and advances to customers amount to CZK
19,459 million and related impairment allowance amounts to CZK 243 million; loan commitments
provided to customers amount to CZK 2,843 million and related impairment provision amounts to CZK
42 million financial guarantees provided to customers amount to CZK 2,418 million and related
impairment provision amounts to CZK 52 million).
Refer to the following notes to the financial statements: 2 (Accounting policies), 3 (Risk management),
10 (Loss from impairment of financial instruments), 13 (Loans and receivable at amortized costs) and 20
(Provisions).
The key audit matter
The Company’s management makes significant judgments and complex assumptions when estimating
expected credit losses (“the Expected Credit Losses”, “ECLs”) in respect of loans and advances to
customers (“Loans”), loan commitment provided to customers (“Commitments”) and financial guarantees
issued („Guarantees“); together “exposures”.
For the purposes of estimating the Expected Credit Losses, the Loans, Commitments and Guarantees
are assigned to one of three stages in line with the requirements of IFRS 9 Financial instruments. Stage
1 and Stage 2 comprise performing exposures, with Stage 2 being exposures with a significant increase
in credit risk since origination. Stage 3 are exposures in default. The assessment of whether a loan
experienced a significant increase in credit risk or is in default requires use of quantitative criteria (such
as internal rating), qualitative criteria and judgment.
Once the exposures are allocated to Stages, key judgements and assumptions relevant to the
measurement of ECLs for Stage 1 Loans, Commitments and Guarantees comprise:
Exposure at default (EAD), determined as gross carrying amount decreased by the value of any
underlying collateral (primarily created by insurance contracts, bank guarantees or cash);
Expected loss ratio, estimated using a statistical model relying on historical internal data about
defaults of loans and related losses;
Upscale factor reflecting forward-looking information (FLI), determined by means of a statistical
model based on selected macroeconomic indicators.
ECLs for Stage 2 and Stage 3 Loans, Commitments and Guarantees are determined on an individual
basis by discounting the probability-weighted projections of estimated future cash flows. The key
judgments and assumptions therein comprise:
Probabilities assigned to cash flow projections;
Estimated amounts and timing of future cash repayments, including cash flows from any underlying
collateral.
Due to the above complexities on the measurement of ECLs, the area required our increased attention
in the audit and as such was determined to be a key audit matter.
6
How the matter was addressed in our audit
Our procedures, performed, where applicable, with the assistance from our own credit risk and
information technology (IT) audit specialists, included, among others:
We critically assessed the Company‘s loan impairment policies, methods and models, and the
processes related to estimating ECLs. As part of the procedure, we assessed the process of
determination of internal ratings of borrowers and identifying indicators of default and significant increase
in credit risk, and allocating of Loans, Commitements and Guarantees to Stages. We also inspected and
assessed the development and validation documentation for internal rating and ECL models, including
the Company’s retrospective testing of major model inputs.
We tested the design, implementation and operating effectiveness of selected IT-based and manual
controls over the disbursement of loans and the receipt of borrowers’ repayments and their matching to
scheduled loan instalments. We also tested design and implementation of selected controls over the
ECL measurement.
We assessed whether the definition of default and staging criteria were applied consistently and in line
with the requirements of the financial reporting standards.
For a sample of exposures, we critically assessed, by reference to the underlying loan files and inquires
of loan officers and credit risk personnel, the existence of any triggers for classification to Stage 2 or
Stage 3.
For a sample of Stage 1 secured exposures, we challenged the realizable value of collateral, by
reference to the underlying collateral agreements (for non-cash collateral) or evidence supporting
balances of cash serving as collateral. For a sample of Stage 1 unsecured exposures, we challenged
the EAD parameter, the expected loss ratio and upscale factor assigned to these exposures, also
considering the FLI, which we independently evaluated.
For impairment allowances calculated individually (Stage 2 and Stage 3), for a risk-based sample of
loans, we challenged the Company’s cash flow projections and key assumptions used therein, by
reference to the respective loan files and inquiries of the Company’s credit risk personnel. We also
evaluated the collateral values by reference to underlying terms of collateral agreements or evidence
supporting balances of cash collateral.
We examined whether the Company’s loan impairment and credit risk-related disclosures in the financial
statements appropriately address the relevant quantitative and qualitative information required by the
applicable financial reporting framework.
Other Information
In accordance with Section 2(b) of the Act on Auditors, other information is defined as information
included in the annual financial report (“the annual report”) other than the financial statements and our
auditor’s report. The statutory body is responsible for the other information.
Our opinion on the financial statements does not cover the other information. In connection with our audit
of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated. In addition, we assess whether the
other information has been prepared, in all material respects, in accordance with applicable laws and
regulations, in particular, whether the other information complies with laws and regulations in terms of
formal requirements and the procedure for preparing the other information in the context of materiality,
i.e. whether any non-compliance with those requirements could influence judgments made on the basis
of the other information.
Based on the procedures performed, to the extent we are able to assess it, we report that:
7
How the matter was addressed in our audit
Our procedures, performed, where applicable, with the assistance from our own credit risk and
information technology (IT) audit specialists, included, among others:
We critically assessed the Company‘s loan impairment policies, methods and models, and the
processes related to estimating ECLs. As part of the procedure, we assessed the process of
determination of internal ratings of borrowers and identifying indicators of default and significant increase
in credit risk, and allocating of Loans, Commitements and Guarantees to Stages. We also inspected and
assessed the development and validation documentation for internal rating and ECL models, including
the Company’s retrospective testing of major model inputs.
We tested the design, implementation and operating effectiveness of selected IT-based and manual
controls over the disbursement of loans and the receipt of borrowers’ repayments and their matching to
scheduled loan instalments. We also tested design and implementation of selected controls over the
ECL measurement.
We assessed whether the definition of default and staging criteria were applied consistently and in line
with the requirements of the financial reporting standards.
For a sample of exposures, we critically assessed, by reference to the underlying loan files and inquires
of loan officers and credit risk personnel, the existence of any triggers for classification to Stage 2 or
Stage 3.
For a sample of Stage 1 secured exposures, we challenged the realizable value of collateral, by
reference to the underlying collateral agreements (for non-cash collateral) or evidence supporting
balances of cash serving as collateral. For a sample of Stage 1 unsecured exposures, we challenged
the EAD parameter, the expected loss ratio and upscale factor assigned to these exposures, also
considering the FLI, which we independently evaluated.
For impairment allowances calculated individually (Stage 2 and Stage 3), for a risk-based sample of
loans, we challenged the Company’s cash flow projections and key assumptions used therein, by
reference to the respective loan files and inquiries of the Company’s credit risk personnel. We also
evaluated the collateral values by reference to underlying terms of collateral agreements or evidence
supporting balances of cash collateral.
We examined whether the Company’s loan impairment and credit risk-related disclosures in the financial
statements appropriately address the relevant quantitative and qualitative information required by the
applicable financial reporting framework.
Other Information
In accordance with Section 2(b) of the Act on Auditors, other information is defined as information
included in the annual financial report (“the annual report”) other than the financial statements and our
auditor’s report. The statutory body is responsible for the other information.
Our opinion on the financial statements does not cover the other information. In connection with our audit
of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated. In addition, we assess whether the
other information has been prepared, in all material respects, in accordance with applicable laws and
regulations, in particular, whether the other information complies with laws and regulations in terms of
formal requirements and the procedure for preparing the other information in the context of materiality,
i.e. whether any non-compliance with those requirements could influence judgments made on the basis
of the other information.
Based on the procedures performed, to the extent we are able to assess it, we report that:
the other information describing matters that are also presented in the financial statements is, in all
material respects, consistent with the financial statements; and
the other information has been prepared in accordance with applicable laws and regulations.
In addition, our responsibility is to report, based on the knowledge and understanding of the Company
obtained in the audit, on whether the other information contains any material misstatement. Based on the
procedures we have performed on the other information obtained, we have not identified any material
misstatement.
Responsibilities of the Statutory Body, Supervisory Board and Audit Committee for the Financial
Statements
The statutory body is responsible for the preparation and fair presentation of the financial statements in
accordance with IFRS Accounting Standards as adopted by the European Union, and for such internal
control as the statutory body determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the statutory body is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the statutory body either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
The Supervisory Board is responsible for overseeing the Company’s financial reporting process. The
Audit Committee is responsible for monitoring the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the above regulations will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of an audit in accordance with the above regulations, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the statutory body.
Conclude on the appropriateness of the statutory body’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists related
to events or conditions that may cast significant doubt on the Company’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to
8
cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
In compliance with Article 10(2) of Regulation (EU) No. 537/2014 of the European Parliament and of
the Council, we provide the following information in our independent auditor’s report, which is required in
addition to the requirements of International Standards on Auditing:
Appointment of Auditor and Period of Engagement
We were appointed as the auditors of the Company by the General Meeting of Shareholders on 29 April
2021 and our uninterrupted engagement has lasted for 4 years.
Consistency with Additional Report to Audit Committee
We confirm that our audit opinion on the financial statements expressed herein is consistent with
the additional report to the Audit Committee of the Company, which we issued on 19 March 2025 in
accordance with Article 11 of Regulation (EU) No. 537/2014 of the European Parliament and of
the Council.
Provision of Non-audit Services
We declare that no prohibited services referred to in Article 5 of Regulation (EU) No. 537/2014 of
the European Parliament and of the Council were provided.
In addition to the statutory audit, the following services were provided by us to the Company that have
not been disclosed in annual report.
Report on Compliance with the ESEF Regulation
We have undertaken a reasonable assurance engagement on the compliance of financial statements
included in the annual report with the provisions of Commission Delegated Regulation (EU) 2019/815 of
17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council
with regard to regulatory technical standards on the specification of a single electronic reporting format
(“the ESEF Regulation”), related to the financial statements.
Responsibilities of the Statutory Body
The Company‘s statutory body is responsible for the preparation of financial statements that comply with
the ESEF Regulation. This responsibility includes:
9
the design, implementation and maintenance of internal control relevant to the application of the
ESEF Regulation;
the preparation of financial statements included in the annual report in the applicable XHTML
format.
Auditor’s Responsibilities
Our responsibility is to express an opinion on whether the financial statements included in the annual
report comply, in all material respects, with the ESEF Regulation based on the evidence we have
obtained. We conducted our reasonable assurance engagement in accordance with International
Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other than Audits or
Reviews of Historical Financial Information (“ISAE 3000”).
The nature, timing and extent of procedures selected depend on the auditor’s judgment. Reasonable
assurance is a high level of assurance, but is not a guarantee that an assurance engagement conducted
in accordance with the above standard will always detect any existing material non-compliance with the
ESEF Regulation.
Our selected procedures included:
obtaining an understanding of the requirements of the ESEF Regulation;
obtaining an understanding of the Company’s internal control relevant to the application of the ESEF
Regulation;
identifying and assessing the risks of material non-compliance with the ESEF Regulation, whether
due to fraud or error; and
based on the above, designing and performing procedures to respond to the assessed risks and to
obtain reasonable assurance for the purpose of expressing our conclusion.
The objective of our procedures was to evaluate whether the financial statements included in the annual
report were prepared in the applicable XHTML format.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.
Conclusion
In our opinion, the Company’s financial statements for the year ended 31 December 2024 included in the
annual report are, in all material respects, in compliance with the ESEF Regulation.
Statutory Auditor Responsible for the Engagement
Jindřich Vašina is the statutory auditor responsible for the audit of the financial statements of Česká
exportní banka, a.s. as at 31 December 2024, based on which this independent auditor’s report has been
prepared.
Prague
20 March 2025
KPMG Česká republika Audit, s.r.o.
Registration number 71
Signed by
Jindřich Vašina
Partner
Registration number 2059
0Contents
Introduction by the Chairman of the Board of Directors
Auditor's report
Key performance indicators
1 Profile of Česká exportní banka, a.s.
1.1 History and development of Česká exportní banka, a.s.
1.2
The issuer’s registered oce and legal status,
legal regulations governing the issuer’s activities
1.3 Disclosed documents
1.4 Information on environmental activities, employment relations
and other information about Česká exportní banka, a.s.
1.4.1 General aspects and international regulation
1.4.2 Environmental, social, and corporate governance (ESG)
1.4.3 Employment relations
1.4.4 Other
1.5 Administrative, management and supervisory bodies of CEB and their commiees
1.6 Organisational scheme of Česká exportní banka, a.s.
1.7 Declaration of no conflict of interest
2 Annual report
2.1 Business activities of Česká exportní banka, a.s.
2.1.1 Export financing
2.1.2 Development in the credit portfolio balance and structure
2.1.3 Newly introduced products and activities
2.2 Financial results, balance of assets and liabilities
2.3 Strategic targets of Česká exportní banka, a.s. in the business and financial area
2.4 Risks to which the Bank is exposed, objectives and methods of risk management
2.4.1 Credit risk
2.4.2 Market risk
2.4.3 Refinancing risk
2.4.4 Liquidity risk
2.4.5 Operational risk
2.4.6 Capital adequacy and capital requirements
2.4.7 Risk factors potentially aecting the capacity of the Bank to meet its obligations
from securities to investors
2.5 Corporate governance report
2.5.1 Information on codes
2.5.2 Shareholder rights
2.5.3 Internal control system
2.5.4 Description of the decision procedures of the Bank's bodies and commiees
2.5.5 Remuneration of persons with managing powers
2.5.6 Authorised auditors
2.5.7 Court and arbitration proceedings
2.5.8 Significant contracts of Česká exportní banka, a.s., as issuer of securities
2.6 Provision of information pursuant to Act No. 106/1999 Coll.,
on Free Access to Information
3 Financial statements
4 Report on relations
4.1 Structure of relations between the controlling entities and the controlled entity
and relations between the controlled entity and entities controlled
by the same controlling entity
4.2 Role of the controlled entity
4.3 Method and means of control
4.4 List of acts taken in the reporting period
4.5 List of mutual contracts between the controlled entity and the controlling entity
or between entities controlled by the same controlling entity without specifying
the contracts subject to bank secret
4.6 Advantages and disadvantages arising from relations between the controlled entities
and between the controlled entity and entities controlled by the same controlling entity
12
Key indicators
01
Unit
Financial results )
Net interest income CZK million , ,
Net fee and commission income CZK million
Operating income CZK million
Net gains on impaired assets CZK million
(Creation) / release of provisions CZK million
Total operating costs CZK million () ()
Income tax CZK million () ()
Net profit CZK million
Balance sheet
Total assets CZK million , ,
Receivables from other customers at amortised cost CZK million , ,
Receivables from credit institutions at amortised cost CZK million , ,
Total financial liabilities to other customers at amortised cost CZK million , ,
Total financial liabilities to credit institutions at amortised cost CZK million , ,
Financial liabilities from issued bonds CZK million , ,
Total equity CZK million , ,
Ratios )
Return on average assets (ROAA) . .
Return on average equity (ROAE) . .
Total capital ratio . .
Assets per employee CZK million . .
Administrative expenses per employee CZK million (.) (.)
Net profit per employee CZK million . .
Other information
Average headcount employees
Headcount (as at December) employees
Guarantees and leers of credit issued CZK million , ,
Loan commitments CZK million , ,
Rating – long-term payables
Standard & Poor’s –AA AA
) Categories including the comparable period are disclosed in accordance with the definitions of the Financial Reporting Standards
(FINREP) and are also in compliance with IFRS.
) Ratios are published on a quarterly basis on the Bank’s web pages and are calculated according to the below definitions:
Return on average assets (ROAA)
Net profit for the reporting period divided by average total assets.
Average total assets: sum total of monthly amounts of total assets at year-end X- to year-end X divided by .
Return on average equity (ROAE)
Net profit for the reporting period divided by average Tier capital.
Average Tier capital: sum total of monthly amounts of Tier capital at year-end X- to year-end X divided by .
Total capital ratio
Capital at year-end divided by total risk exposures at year-end.
Assets per employee
Total assets for the reporting period divided by average headcount.
Administrative expenses per employee
Administrative expenses for the reporting period divided by average headcount.
Net profit per employee
Net profit for the reporting period divided by average headcount.
13
Profile of
Česká exportní banka, a.s.
01
14 1 Profile of Česká exportní banka, a.s.
1 Profile of Česká exportní banka, a.s.
1.1 History and development of Česká exportní banka, a.s.
Česká exportní banka, a.s. ("CEB" or "the Bank"), recorded in the Commercial Register maintained by the
Municipal Court in Prague, file number B 3042, is a specialised banking institution supporting exports,
investments, and international competitiveness of Czech export-oriented companies. CEB is actively
involved in the transformation of the Czech economy into an economy built on innovation, added value, final
products, and environmental responsibility. With its products and services, CEB fills a gap in the market
and thus complements the oer of the commercial banking sector in specific segments and transactions.
Products and services provided to export-oriented companies, manufacturers, exporters, and investors
abroad are governed by the current wording of Act No. 58/1995 Coll., on Insurance and Financing of
Exports with State Support, and are implemented within the scope of the banking licence. Since 1995,
CEB’s oer has developed from the provision of basic concessional financing to today’s comprehensive
services of supported financing.
Based on a banking licence issued by the Czech National Bank under Ref. No. 2003/3966/520 dated
19 September 2003, amended by the decision of the Czech National Bank under Ref. No. 2003/4067/520
dated 30 September 2003, under Ref. No. 2005/3982/530 dated 16 December 2005, under
Ref. No. 2011/141/570 dated 6 January 2011 and under Ref. No. 2013/6197/570 dated 27 May 2013,
the principal business activities of CEB are defined as follows:
i. Pursuant to Section 1 (1) of Act No. 21/1992 Coll., on Banks
a) Acceptance of deposits made by general public
b) Provision of loans
ii. Pursuant to Pursuant to Section 1 (3) of Act No. 21/1992 Coll., on Banks
a) Investing in securities on the Bank’s own account in the following scope:
• Investing in negotiable securities issued by the Czech Republic, the Czech National Bank and
foreign governments
• Investing in foreign bonds and mortgage bonds, and
• Investing in securities issued by legal entities with registered oces in the territory of the
Czech Republic.
c) Payment systems and clearing
e) Provision of guarantees
f) Opening of leers of credit
g) Collection services
h) Investment services under special regulation comprising:
• Major investment services
— Pursuant to Section 4 (2) (a) of the Act on Capital Market Undertakings – receiving and
giving instructions on investment instruments, specifically investment instruments pursuant
to Section 3 (1) (d) of this Act
—
Pursuant to Section 4 (2) (b) of the Act on Capital Market Undertakings – implementation
of instructions related to investment instruments on the account of clients, specifically
investment instruments pursuant to Section 3 (1) (d) of this Act
—
In line with Section 4 (2) (c) of the Act on Capital Market Undertakings – trading of investment
instruments, on the Bank’s account, specifically investment instruments pursuant to Section
3 (1) (a) of this Act, with the exception of shares and other securities representing an
equity investment in a company or another legal entity, specifically investment instruments
pursuant to Section 3 (1) (c) and (d) of the Act on Capital Market Undertakings
—
Pursuant to Section 4 (2) (e) of the Act on Capital Market Undertakings – investment
advisory on investment instruments, specifically instruments pursuant to Section 3 (1) (d)
of this Act, and
15 1 Profile of Česká exportní banka, a.s.
• Additional investment services
— Pursuant to Section 4 (3) (a) of the Act on Capital Market Undertakings – escrow and
administration of investment instruments including the relating services, specifically
investment instruments pursuant to Section 3 (1) (a), (c) and (d) of this Act
— In line with Section 4 (3) (c) of the Act on Capital Market Undertakings – advisory on the
capital structure, industrial strategies and related issues, advisory and services on company
transformations and company transfers.
l) Provision of banking information
m) Trading on the Bank’s own account or on the client’s account in foreign currencies that are not
investment instruments and in gold to the extent of the following:
• Trading on the Bank’s own account in foreign bonds
• Trading on the Bank’s own account in funds denominated in foreign currencies
• Trading on the Bank’s own account or on its clients’ account in negotiable securities issued
by foreign governments
•
Trading on the Bank’s own account or on its clients’ account in monetary rights and obligations
derived from the above-mentioned foreign currencies
• Trading on its clients’ account in funds denominated in foreign currencies. and
p) Activities directly related to the activities mentioned in Česká exportní banka, a.s.’s banking licence.
Summary of activities the performance or provision of which was limited or eliminated by the Czech
National Bank during 2024:
No activities have been limited or eliminated.
1.2 The issuer’s registered oce and legal status, legal regulations
governing the issuer’s activities
Registered oce: Praha 1, Vodičkova 701/34, post code 111 21
Legal form: joint stock company
Corporate ID: 63078333
Telephone: +420 222 841 100
Fax: +420 224 211 266
E -mail: ceb@ceb.cz
Internet: www.ceb.cz
The principal EU and Czech legal regulations under which CEB performed its activities in 2024:
Act No. 563/1991 Coll., on Accounting
Act No. 21/1992 Coll., on Banks
Act No. 586/1992 Coll., on Income Taxation
Act No. 589/1992 Coll., on Social Security Contributions and Contributions to
the State Employment Policy
Act No. 592/1992 Coll., on Public Health Insurance
Act No. 58/1995 Coll., on Insurance and Financing of Exports with State Support
16 1 Profile of Česká exportní banka, a.s.
Act No. 106/1999 Coll., on Free Access to Information
Act No. 229/2002 Coll., on the Financial Arbiter
Act No. 190/2004 Coll., on Bonds
Act No. 235/2004 Coll., on Value Added Tax
Act No. 256/2004 Coll., on Capital Market Undertakings
Act No.499/2004 Coll., on Archiving and Record Management
Act No. 69/2006 Coll., on Implementation of International Sanctions
Act No. 253/2008 Coll., on Certain Measures against Money Laundering and Terrorism
Financing
Act No. 93/2009 Coll., on Auditors
Act No. 280/2009 Coll., on the Tax Procedure Code
Act No. 408/2010 Coll., on Financial Collateral
Act No. 89/2012 Coll., Civil Code
Act No. 90/2012 Coll., on Business Corporations and Cooperatives (Act on Business
Corporations)
Act No. 304/2013 Coll., on Public Registers of Legal Entities and Natural Persons
Act No. 250/2016 Coll., on Liability for Administrative Oences and Related Procedures
Act No. 370/2017 Coll., on System of Payments
Act No. 110/2019 Coll., on Personal Data Protection
Regulation (EU) No. 2016/679, on the protection of natural persons with regard to the processing
of personal data and on the free movement of such data (GDPR)
Regulation (EU) No. 596/2014, on market abuse
Regulation (EU) No. 575/2013, on prudential requirements for credit institutions and investment
firms and related implementing regulations of the European
Commission
Regulation (EU) No. 648/2012, on OTC derivatives, central counterparties and trade repositories
(EMIR)
Regulation (EU) No. 1233/2011, on the application of certain guidelines in the field of ocially
supported export credits
Regulation (EU) No. 2022/2554, on digital operational resilience in the financial sector and related
implementing regulations (DORA)
Regulation (EU) No. 2022/255, on measures for a high common level of cybersecurity across the
Union (NIS 2).
These regulations represent the primary legislative framework for CEB’s activities. In addition to the
aforementioned regulations, CEB’s activities have to comply with various other decrees, government
regulations or implementing regulations, guidelines and other documents issued by EU bodies.
1.3 Disclosed documents
CEB’s Articles of Association in Czech are publicly available and the hard-copy version thereof can be
inspected in the Bank’s registered oce. The electronic version of the Bank’s Articles of Association in
Czech is publicly available in the Collection of Deeds of the Commercial Register file No. B 3042/SL 218/
MSPH of the Municipal Court in Prague, hps://or.justice.cz/.
In addition, CEB’s website makes publicly available all documents and information on CEB’s activities,
through which it meets its informational obligation arising from the relevant legal regulations that the Bank
is to follow in performing its business.
17 1 Profile of Česká exportní banka, a.s.
1.4 Information on environmental, social, and corporate governan-
ce, employment relations and other information about Česká
exportní banka, a.s.
1.4.1 General aspects and international regulation
CEB is not a member of any group and has no organisational branch abroad.
Act No. 58/1995 Coll., on Insurance and Financing of Exports with State Support, authorised the Bank to
finance exports with state support in line with international rules of public support applied in financing
state-supported export loans with a maturity period of at least two years (predominantly with the OECD
Consensus and WTO rules”).
Under Section 8 (1) (c) of Act No. 58/1995 Coll., on Insurance and Financing of Exports with State Support,
the state is held liable for the obligations of CEB arising from payments of funds received by CEB and for
obligations arising from other CEB’s operations on the financial markets.
No specific event that could have a material impact on the evaluation of CEB’s solvency has occurred
since the last publication of the Annual Report of CEB as an issuer of securities.
When providing export loans with a maturity period of at least two years, CEB complies with the procedures
set out in OECD Council Recommendation on Common Approaches for Ocially Supported Export Credits
and Environmental and Social Due Diligence (2016) providing guidance on the application of some rules
in state-supported export credits. In accordance with these rules, CEB requires all financed projects
to be assessed by an independent external expert, an ESIA opinion (Environmental and Social Impact
Assessment) to be prepared and the relevant conditions resulting from this opinion, if any, to be included
into the contractual documentation concluded with the client.
CEB continues to fully respect the obligations arising for the Czech Republic from the OECD guidelines
to combat bribery of foreign public ocials in international business transactions specifically the “OECD
Council Recommendation on Bribery and Ocially Supported Export Credits” (2019). CEB uses this
document as its primary basis when formulating requirements for exporters and evaluating compliance
with the conditions of fight against corruption in specific export transactions.
1.4.2 Environmental, social, and governance (ESG)
CEB is actively involved in the transformation of the Czech economy into an economy built on innovation,
added value, final products, and environmental responsibility. In its operations, CEB impacts the environment,
social space, and sustainable governance (i.e. ESG) in two ways – 1) through its business activities and
2) through its management and approach to the environmental aspects of its operations and its behaviour
towards clients, employees, and other stakeholders.
In the past period, CEB has acted in accordance with the ESG framework strategy, which based on
a decision of the general meeting instructs the CEB to:
• adhere to the ESG concept in its operational activities, and
• emphasise in its business strategy companies gradually implementing sustainability or responsible
behaviour in relation to ESG in their activities, including decarbonisation, greening and reduction of
energy intensity (i.e. to support their ESG transition).
18 1 Profile of Česká exportní banka, a.s.
In accordance with the above, CEB has:
• added the definition of ESG risk and the basic method of its management to the Risk Management
Strategy
•
calculated its carbon footprint in accordance with the GHG Protocol in cooperation with the independent
company CI3, s.r.o
• set 2030 targets in all three ESG areas, specifically targeting carbon footprint reduction, responsible
approach to employees, talent acquisition, involvement in volunteer activities, and eective use of
membership in ESG and sustainability-related association
• analysed in detail non-financial reporting obligations arising from European regulations, in particular
the Corporate Sustainability Reporting Directive (CSRD) and the regulation on prudential requirements
for credit institutions (CRR), which CEB is preparing to comply with.
In relation to clients, the client approach to ESG issues has also been added to the approval procedure for
new business cases. On a voluntary basis, CEB has joined parts of the “Synesgy” global digital platform
for assessing ESG factors in supply chains, which aims to collect and manage information about the level
of sustainability of clients' businesses.
CEB informed the Supervisory Board and the Audit Commiee in detail about all implemented and planned
ESG activities.
In the coming period, CEB will primarily focus on:
•
further close cooperation with Exportní garanční a pojišťovací společnost, a.s. (as the owner of the
premises where CEB is located and operates) in looking for energy savings at the headquarters of both
companies and the reduction of the carbon footprint
• continuous analyses and implementation of regulatory and reporting requirements in the ESG area
• continuation of the strategic dialogue with CEB's key stakeholders leading to the anchoring of CEB's
strategic position and strategy within the ESG framework with regard to the Economic Strategy (2024)
and the Export Strategy of the Czech Republic (2023).
1.4.3 Employment relations
CEB’s employment relations are concluded in line with Act No. 262/2006 Coll., the Labour Code,
as amended. They include employment contracts, agreements to complete a job and agreements
to perform work.
Members of the Board of Directors, the Supervisory Board and the Audit Commiee perform their functions
based on contracts on holding the oce concluded in line with Section 59 et seq. of Act No. 90/2012
Coll., on Business Corporations and Cooperatives (Act on Business Corporations). CEB’s regulations
specify further provisions on specific areas concerning employment relations and executive functions in
its internal policies (statutory standards, guidelines, internal policies, codes, strategies). These include in
particular the following internal policies: CEB’s Articles of Association, Work Rules, Employee’s Code of
Ethics, Organisation Code, Occupational Health and Safety and Fire Protection, Remuneration and Work
Performance Management, Business Trips and Travel Compensation, Hiring and Selecting Employees,
Employee Education Process, Principles of Remuneration of Members of Corporate Bodies, Summary
Principles of Remuneration of CEB Employees (‘Risk Takers’), Human Resources Management Principles.
19 1 Profile of Česká exportní banka, a.s.
1.4.4 Other
CEB does not make any research and development investments on its own account.
As part of the permied version of the product “loan to finance export manufacturing”, CEB oers Czech
manufacturers the option of financing the implementation of new results of research and development
into production, i.e. commercialisation of tangible results of research and development in connection with
exports. In 2024, this version of the product Loan to Finance Export Manufacturing was not provided.
Historically, CEB records three loans provided under this version of the product in the aggregate nominal
value of the principal of CZK 1,088 million.
In compliance with Section 41 (a) of Act No. 21/1992 Coll., on Banks, CEB contributes to the system of
insurance of receivables from deposits and contributes to the Deposit Insurance Fund in the scope defined
by law. The contributions to the system amounted to CZK 6,775 in 2024.
CEB, as a securities trader, is obliged to contribute to the Deposit Guarantee Fund of the Securities Traders
in compliance with Act No. 265/2004 Coll., on Capital Market Undertakings. In compliance with Section
129 (2) of the Act, the contribution of CEB amounted to CZK 10,000 in 2024.
Since 2016, CEB has been obliged to contribute to the Crisis Resolution Fund in compliance with the relevant
provisions of the Act on Recovery and Resolution in the Financial Market (predominantly Sections 209
and 214). The contribution for 2024 as stipulated by the Czech National Bank amounted to CZK 5,235,529.
20 1 Profile of Česká exportní banka, a.s.
Members
Ing. Miroslav Zámečník Member since 24 April 2017 to 24 April 2022
Substitute member from 24 November 2022
to 22 December 2022
Member since 22 December 2022
Ing. Ivan Duda Member since 24 June 2021
prof. PhDr. Petr Teplý, Ph.D. Member since 23 June 2014 to 23 June 2019
re-elected from 24 June 2019
Vice-Chairman from 24 August 2021
to 24 June 2024
Substitute member from 19 September 2024
Member since 20 December 2024
1.5 Administrative, management and supervisory bodies of CEB
and their commiees
General Meeting – the supreme body of the Bank that decides by the majority of present shareholders in
the issues that are entrusted to its authority by Act No. 90/2012 Coll., and the Bank’s Articles of Association.
Supervisory Board – supervises the performance of the Board of Directors’ activities and the performance
of the Bank’s business activities and presents its opinions to the General Meeting.
Supervisory Board as at 31 December 2024 (with changes that occurred during 2024)
Chairman
Ing. Petr Knapp Substitute member and Chairman since
18 November 2021, Member and Chairman since
21 December 2021
Vice-Chairman
Ing. Dušan Hradil Member since 1 August 2021
Vice-Chairman from 24 October 2024
21 1 Profile of Česká exportní banka, a.s.
Nomination Commiee – an advisory commiee of the Supervisory Board established by a decision of
the Board of Directors dated 8 June 2022 with eect from 9 June 2022. The status of the Nomination
Commiee is regulated by the Rules of Procedure of the Nomination Commiee – SN 21.
Board of Directors – the Bank’s statutory body, manages the operations of the Bank, acts on its behalf,
ensures the business management including accounting, and takes decisions related to all bank issues
unless otherwise stipulated by law or by Articles of Association defined as competences of the General
Meeting or the Supervisory Board. The Board of Directors makes decisions that may be subject to the
Supervisory Board’s additional approval in accordance with the Bank’s Articles of Association.
Board of Directors as at 31 December 2024
Chairman
Ing. Petr Knapp since 9 June 2022
Members
Ing. Miroslav Zámečník since 27 June 2024
Ing. Ivan Duda since 23 June 2022
Mgr. Veronika Peřinová since 7 July 2022
Ing. Daniel Krumpolc since 9 June 2022
Mgr. Ondřej Zemina since 9 June 2022
Prof. PhDr. Petr Teplý, Ph.D. since 23 June 2022 to 24 June 2024
Chairman
Ing. Daniel Krumpolc
Chairman of the Board of Directors/Chief
Executive Ocer in charge of the Export
Financing Division
Member, Chairman and Chief Executive Ocer
since 1 March 2022
Vice-Chairman
Ing. Emil Holan
Vice-Chairman of the Board of Directors
in charge of the Risk Management Division
Member from 1 August 2018 to 1 August 2023
Vice-Chairman from 2 July 2020 to 1 August 2023
Substitute member and Vice-Chairman
since 2 August 2023
Member and Vice-Chairman since 31 October 2023
to 30 September 2024
Ing. Petr Vohralík
Member of the Board of Directors in charge of the
Risk Management Division
Substitute member from 14 October 2024
Vice-Chairman from 22 October 2024
to 19 December 2024
Member since 20 December 2024
Vice-Chirmn position vcnt from 1 October 2024 to 21 October 2024 nd from 20 December 2024
Note: the position hs been filled since 28 Jnury 2025.
22 1 Profile of Česká exportní banka, a.s.
Members
Ing. Petr Hejduk
Member of the Board of Directors,
in charge of the Finance and Operations Division
/entrusted with the mngement of the Risk
Mngement Deprtment from 1 October 2024
to 13 October 2024/
Substitute member from 1 June 2023
to 31 October 2023
Member since 31 October 2023
Audit Commiee – set up by a decision of the General Meeting held on 10 December 2009 and eective
as of 4 January 2010. The Audit Commiee focuses mostly on the process of preparing the Bank’s financial
statements, evaluates the eectiveness of the internal controls of the Bank, the internal audit and/or
risk management systems. It monitors the procedure of obligatory audit of the financial statements and
recommends the statutory auditor.
Audit Commiee as at 31 December 2024
Chairman
Ing. Petr Kříž, FCCA Member since 22 December 2022
Chairman since 21 February 2023
Members
Ing. Radovan Odstrčil Member from 29 April 2020 April 2020
to 29 April 2024
Ing. Barbora Janíčková Member since 30 April 2024
Ing. Stanislav Staněk Member from 29 April 2019 to 29 April 2023
re-elected from 30 April 2023
Other decision-making bodies of CEB
Within the scope of its activities, the Board of Directors set up the following decision-making bodies:
Credit Commiee – a permanent decision-making and advisory body of the Board of Directors for deciding
on and evaluating all issues related to selected transactions and credit risk management, and the advisory
body of the leading employees of CEB. The Credit Commiee is part of the management and control
system of the Bank. Since 1 July 2018, this decision-making body has assumed certain competencies of
the Board of Directors, such as negotiating and approving business cases.
The composition of the Credit Commiee in 2024 was as follows:
Chairman of the Credit Commiee
Ing. Emil Holan
Vice-Chairman of the Board of Directors in charge
of the Risk Management Division
until 30 September 2024
continued on next pge
23 1 Profile of Česká exportní banka, a.s.
Chairman of the Credit Commiee
Ing. Petr Hejduk
Member of the Board of Directors,
in charge of the Finance and Operations Division
/entrusted with the mngement of the Risk
Mngement Deprtment from 1 October 2024
to 13 October 2024/
from 1 October 2024 to 13 October 2024
Ing. Petr Vohralík
Member of the Board of Directors in charge of the
Risk Management Division
since 14 October 2024
Vice-Chairman of the Credit Commiee
Ing. Daniel Krumpolc
Chairman of the Board of Directors/Chief Executive
Ocer in charge of the Export Financing Division
Member of the Credit Commiee
Ing. Petr Hejduk
Member of the Board of Directors,
in charge of the Finance and Operations Division
Members on behalf of Risk Management Division
PhDr. Václav Fišer
Risk Manager Senior
Ing. Pavel Švejda
Director of the Credit Risk Management and Loan Analysis section
Members on behalf of Export Financing
Ing. Miloš Welser
Senior Manager of Export Financing Development and Strategy
Ing. Miroslav Stříbrný
Director of Sales and Export Financing Division
Chairman of ALCO
Ing. Daniel Krumpolc
Chairman of the Board of Directors/Chief Executive
Ocer in charge of the Export Financing Division
The Assets and Liabilities Management (ALCO) – Commiee operates as permanent decision-making
and advisory body of the Board of Directors for deciding on and evaluating all issues related to the
management of assets and liabilities, minimisation of market risks related to CEB's banking transactions
and operations on financial markets, and as an advisory body for CEB's managers. ALCO is a part of the
management and control system of the Bank.
The composition of ALCO in 2024 was as follows:
24 1 Profile of Česká exportní banka, a.s.
Vice-Chairman of ALCO
Ing. Emil Holan
Vice-Chairman of the Board of Directors in charge
of the Risk Management Division
until 30 September 2024
Ing. Petr Hejduk
Member of the Board of Directors,
in charge of the Finance and Operations Division
/entrusted with the mngement of the Risk
Mngement Deprtment from 1 October 2024
to 13 October 2024/
from 1 October 2024 to 13 October 2024
Ing. Petr Vohralík
Member of the Board of Directors,
in charge of the Risk Management Division
since 14 October 2024
Members of ALCO
Ing. Petr Hejduk
Member of the Board of Directors,
in charge of the Finance and Operations Division
Ing. Miloš Welser
Senior Manager of Export Financing Development and
Strategy
Ing. David Franta, MBA
Director of Treasury
Ing. Roman Somol, MBA
Head of the Enterprise Risk Management department
Ing. František Jakub, Ph.D.
Director of the Finance and Accounting Section
Vice-Chairman of ITDC
Ing. Emil Holan
Vice-Chairman of the Board of Directors in charge
of the Risk Management Division
until 30 September 2024
The Information Technologies Development Commiee (ITDC) – is a permanent decision-making and
advisory body of the Board of Directors of CEB, dealing with issues relating to ICT management, and an
advisory body of CEB's managers. ITDC is part of the management and control system of CEB.
The composition of ITDC in 2024 was as follows:
Chairman of ITDC
Ing. Petr Hejduk
Member of the Board of Directors,
in charge of the Finance and Operations Division
continued on next pge
25 1 Profile of Česká exportní banka, a.s.
Vice-Chairman of ITDC
Ing. Petr Vohralík
Member of the Board of Directors in charge of the
Risk Management Division
since 14 October 2024
/the position ws vcnt from October 2024 to 13 October 2024/
continued on next pge
Members of ITDC
Ing. Jan Bukovský
ICT Security Inspector
Ing. Hana Vondráčková
Credit Methodologist
Ing. Petr Jindrák
Director of the Banking IS Development Section
Ing. Dagmar Zelisková
Statistics Analyst
Bc. Miloslav Svoboda
Director of the Banking IS Operations section
Chairman of ORMC
Ing. Emil Holan
Vice-Chairman of the Board of Directors in charge
of the Risk Management Division
until 30 September 2024
Ing. Petr Vohralík
Member of the Board of Directors in charge of the
Risk Management Division
since 14 October 2024
/the position ws vcnt from 1 October 2024 to 13 October 2024/
Vice-Chairman of ORMC
Ing. Petr Hejduk
Member of the Board of Directors,
in charge of the Finance and Operations Division
Members Komise of ORMC
Ing. Roman Somol, MBA
Head of the Enterprise Risk Management department
The Operational Risk Management Commiee (ORMC) – is a permanent decision-making and advisory
body of the Board of Directors for all decision-making procedures and assessment of operational risks
and an advisory body of CEB's managers. ORMC is part of the management and control system of CEB.
The composition of ORMC in 2024 was as follows:
26 1 Profile of Česká exportní banka, a.s.
Members Komise of ORMC
Ing. Miloš Welser
Senior Manager of Export Financing Development and Strategy
Ing. František Jakub, Ph.D.
Director of the Finance and Accounting Section
Mgr. Ondřej Zemina
Head of the Compliance department
Bc. Miloslav Svoboda
Director of the Banking IS Operations section
27 1 Profile of Česká exportní banka, a.s.
Division Section Department
Restructuring and
Debt Recovery (1020)
Credit Risk Management
and Loan Analysis (2020)
Business Administration
(4030)
Enterprise Risk
Management(2010)
Corporate Secretary
(0101)
Strategy and
Communication (0130)
Treasury
(0160)
Internal Audit
(0400)
Compliance
(0500)
Human Resources
(0120)
General Meeting
Board of Directors
CEO Division (0100)
CEO
Sales and Export Financing Division
(3000)
Head of the Division
Finance and Operations Division (4000)
Deputy CEO
Risk Management Division (2000)
Deputy CEO
Export Financing
(3010)
Export financing 1
(3011)
Export financing 2
(3012)
Finance
(4041)
Accounting
(4042)
Trade Finance
(3050)
Finance and Accounting
(4040) Legal
(0140)
Banking IS
Development
(4010)
Banking IS
Operations
(4020)
Payments
(4002)
Supervisory BoardAudit Commiee
Organizational structure of Česká exportní banka, a.s., valid from 31 December 2024
ICT Security
(4003)
Internal Administration
(4021)
1.6 Organisational scheme of Česká exportní banka, a.s.
1.7 Declaration of no conflict of interest
The members of the Bank’s bodies, commiees and councils declare that:
a) They have not abused their position in the Bank or the information that they had in place to gain
profit that could not otherwise have been gained, either for themselves or for other persons
b) They have not concluded any transactions using the investment instruments of the Bank’s clients
on their own account or on the account of a person closely related to them
c) They have not provided instructions or recommendations to other persons related to the transactions
with investment instruments of the Bank’s clients that could be used by the persons in trading
with the investment instruments on their own account, and
d) They have avoided all activities that may potentially expose them to a conflict of interest.
28
Annual report
0
2
29 2 Annual report
"We are a purely Czech bank. We care about
the success of Czech companies. We are
not limited by the corporate policies of
foreign owners. To Czech export-oriented
companies and Czech investors heading
abroad, we oer solutions truly tailored to
their needs and individual transactions."
Ing. Daniel Krumpolc
Chairman of the Board of Directors
and Chief Executive Ocer of Česká exportní banka, a.s.
30 2 Annual report
2 Annual report
2.1 Business activities of Česká exportní banka, a.s.
2.1.1 Export Financing
Complying with the Czech Republic’s national economic strategic objectives in export support, CEB’s
role is export financing realised through products included in CEB’s product portfolio in accordance with
the definition given by Act No.58/1995 Coll., on Insurance and Financing of Exports with State Support
("Act No.58/1995 Coll."). In 2024, CEB successfully continued to fulfil the tasks arising from its principal
business activity, whose objectives are anchored in the "Strategy of Česká exportní banka, a.s. for the
2024 to 2026 period".
CEB’s long-term strategy is to use its supported financing products and products to increase the
international competitiveness to fill the market gap in export financing identified by Czech companies as
applicants for supported financing in their roles of manufacturers for export, exporters, export-oriented
companies, or investors abroad.
The nature of the demand of Czech export companies in 2024 reflected their specific needs when realising
export contracts, reinforcing their international competitiveness, or entering foreign markets in the form
of outbound investments.
The dynamics of international trade during 2024 continued to be considerably influenced by "friend-
shoring", i.e., the trend towards more politically oriented relations. This trend can be clearly observed in
the global economy from the second half of 2022. Overall, international trade in services significantly
outpaced the growth in international trade in goods in 2024, although the inflation factor played a role.
Sectors such as information and communications technology were significantly growing, while the value
of global trade fell in sectors such as road vehicles, textiles, metals, and energy. The end of 2024 was also
aected by pre-stocking due to expectations of potential changes in US trade policy.
Factors aecting global trade in 2024, in particular the unfavourable global economic conditions and
persistent geopolitical conflicts, combined with slow growth in the eurozone, were also directly and indirectly
reflected in the economic performance of the Czech economy, where, in addition to these factors, energy
prices and a shortage of skilled labour played a negative role and had its eects on industry as a key
export sector of the Czech economy. Czech industry had to face weak domestic and foreign demand
and stagnant foreign and domestic investment activity, also aected in the Czech Republic by higher
international energy prices and higher interest rates. The above unfavourable developments in the eurozone,
which represents a key target market for Czech exports, were dominated by the economic situation in
Germany, the Czech Republic's main trading partner, in relation to Czech exports.
According to expert estimates, the outlook for 2025 is cautiously positive due to expectations of
a mitigation in global inflation, a stable economic growth forecast, and improvements in business activity,
but the latent threat of trade wars, together with existing geopolitical tensions, brings an increased level
of uncertainty. In this context, we cannot underestimate the impact of the announced changes in the
US approach towards a significantly protectionist trade policy expressed in new taris against regions
from dierent parts of the world, including the European Union, with possible impacts on the global
trade dynamics, the Czech Republic, and its exports. We can also expect likely counteractions by major
global players with the possible eect of escalating trade barriers to international trade and a significant
prioritisation of national interests.
Expert expectations for the development of the Czech economy in 2025 tend towards moderate optimism,
but the future development of the still weakened external demand will be crucial for the development of
31 2 Annual report
Czech exports. In the long-term, the structure of the Czech economy is problematic, especially the high
share of energy-intensive industries and the low share of high value-added production. The Czech economy
will probably continue to recover only slowly in 2025, with further developments in the economic situation,
particularly in Germany, playing a key role. The implementation of ESG measures at the company level
also poses challenges for Czech industry and exports. Companies will be forced to invest in upgrading
technologies and production processes to reduce greenhouse gas emissions, increase energy eciency,
and comply with environmental standards. Given that the trend in international trade is towards a reduction
in demand for goods with a high carbon footprint, innovative solutions need to be sought at the corporate
level, and CEB sees its role for the coming period in supporting Czech export-oriented companies in this
area.
In accordance with its medium-term strategy for the 2025 to 2027 period, CEB is actively involved in the
transformation of the Czech economy into an economy built on innovation, added value, final products,
and environmental responsibility. In 2025, CEB will focus on supporting the increase in added value of
export-oriented economy sectors, supporting the international competitiveness of Czech exports, and
the international expansion of Czech investors in foreign markets, with an emphasis on growth segments
of the economy with high added value and investment intensity, as well as on sectors burdened by their
ESG transition.
Evaluation of CEB’s results for 2024
The macroeconomic situation aecting Czech exports in 2024 was still challenging in many respects for
Czech exporters and export-oriented companies. Even in these conditions, 2024 was a successful year
for CEB, as the volume of new business increased again compared to 2023. This result was achieved
while respecting CEB's conservative requirements for an acceptable transaction risk profile. CEB remains
a reliable partner for the Czech export sector both in periods of growth and in periods full of challenges.
In providing its products, CEB applies a non-discriminatory and non-preferential policy in relation to
Czech applicants for supported financing, in combination with a conservative policy of assessing the
creditworthiness of the entities and the risks of transactions, industries and territories as well as their limits.
The growth trend already started in 2021 successfully continued in 2024. The growth trend already started
in 2021 successfully continued in 2024. In terms of the key indicator "volume of signed contracts" (Figure
1), the 2024 result of CZK 7,565 million of volume of signed contracts surpassed the success of 2023 by
10.65%. This volume of products was implemented in support of 19 Czech exporters, producers for export,
export-oriented companies and investors abroad.
Volume of signed contracts between 2015 and 2024 (CZK million) – Figure 1
2023
2022
2024
2021
2020
2019
2018
2017
2016
2015
Source: CEB
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
4,039
2,025
4,299
5,610
3,752
989
2,120
5,000
6,837
7,565
32 2 Annual report
Apart from the volumes reported, CEB also initiated/processed 14 export leers of credit in the total
volume of approximately CZK 531.19 million, based on the requirements of 10 Czech exporters and their
foreign customers.
During 2024, CEB did not execute any new transactions using insurance products of Exportní garanční
a pojišťovací společnosti, a.s.("EGAP").
As a result of CEB's trade activities, a relatively wide range of export target countries was reached by CEB
products for Czech exporters and Czech investors abroad, totalling CZK 2,566.42 million (Table 1). Products
to support the international competitiveness of export-oriented companies of CZK 4,998.97 million were
provided, with the parameters being not the identification of the export territory but the share of export
sales in total sales and the downstream export territories being diverse.
Share of export target countries by volume of new contracts concluded in 2024 – Table
Turkey . Morocco .
Indonesia . Luxembourg .
Germany . Rwanda .
Nigeria . Cyprus .
Poland . Algeria .
India . Jordan .
Ethiopia . Republic of Korea .
Source: CEB
In terms of the number of provided products (Figure 2), the non-payment guarantee, a key instrument for
Czech exporters in obtaining export contracts, has a significant share in the structure of provided products.
Source: CEB
1.72% Confirmed export leer of credit
3.45% Direct Loan for Foreign Investments
10.35% Direct Loan to Increase
International Competitiveness
34.48% Purchase of receivables
50.00% Guarantee
Podíl typu produktu podpořeného financování na počtu produktů poskytnutých v roce 2024 – graf č. 2
Share of the supported financing products in the number of products provided in 2024 – Figure 2
Similarly, in terms of the volume of provided products (Figure 3), the share of the Direct Loan to Increase
International Competitiveness of Export-Oriented Companies product continued to grow significantly as
in 2023, with the total volume reaching CZK 5,645.66 million. This represents 74.63% of the total volume of
newly concluded contracts (in the breakdown of this product by purpose, 26.70% of the volume reached
was for investment purposes and 73.30% for operational purposes). The Direct Loan for Foreign Investments
product provided to two significant Czech groups operating on an international scale placed second with
33 2 Annual report
Source: CEB
0.20% USD
21.15% CZK
78.65% EUR
Měnová struktura objemu nových produktů v roce 2024 – graf č. 4
a share of 15.84% and a volume of approximately CZK 1,198.12 million. The remaining approximately 9.54%
of the volume of provided products comprise Trade Finance products.
In terms of the currency structure of new products provided in 2024 (Figure 4), the euro retained its
dominant position with a share of 78.65%, followed by the Czech crown with a share of 21.15%. The rest
goes to the US dollar with a share of 0.20%.
Share of the supported financing products in the volume of products (in CZK)
provided in 2024 – Figure 3
Currency structure of new products volume in 2024 – Figure 4
Source: CEB
0.73% Guarantee
1.88% Confirmed export leer of credit
6.92% Purchase of receivables
15.84% Direct Loan for Foreign Investments
74.63% Direct Loan to Increase
International Competitiveness
34 2 Annual report
In a year-on-year comparison of the development of the volume of new products (Figure 5), we can clearly
see the success of products for financing the international competitiveness of export-oriented companies,
with a year-on-year increase of 106.73%.
In terms of the number of products (Figure 6), results did not change significantly, except for a relatively
significant decrease in the purchases of receivables. CEB mainly aributes this significant decline to
changes in the payment terms of export contracts.
Source: CEB
2023 2024
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
0
55
142
523
1,198
5,645
556
642
1,158
1,749
2,730
Direct Export
Customer Loan
Non-payment
guarantee
Confirmed
leer of credit
Purchase
of receivables
Direct Loan
for Foreign
Investments
Direct Loan
to Increase International
Competitiveness
0
Year-on-year comparison of the development of the volume of new products (CZK million) – Figure 5
Year-on-year comparison of the development of the volume of new products (pc) – Figure 6
Source: CEB
2023 2024
0
100
200
300
400
500
600
0
1
2
6
20
29
2
0
2
5
463
31
Direct Export
Customer Loan
Confirmed
export leer
of credit
Direct Loan
for Foreign
Investments
Direct Loan to
Increase International
Competitiveness
Purchase
of receivables
Non-payment
guarantee
Meziroční srovnání vývoje počtu nových produktů (ks)– graf č. 6
35 2 Annual report
2.1.2 Development in the credit portfolio balance and structure
The total principal amount of provided loans and purchased receivables declined year-on-year by
4.07% to a total of CZK 18 474 million (Figure 7). The main reason for this decline is the repayment of
several volume-significant operating loans to support international competitiveness.
As at 31 December 2024, the total principal amount of provided loans and purchased receivables
represented 57% of total assets.
In terms of the currency structure of the principal amount of provided loans as at 31 December 2024, based
on a translation to CZK (Figure 8), the dominant currency as in previous years was the euro, with a share
of 85.83%, a marginal increase compared to 2023. The share of US dollar in the total principal structure
of 14.17% decreased by approximately 8.53% compared to 2023, due to a negative balance between the
volume of drawing and paying loans denominated in USD.
Loan portfolio – currency structure – development of shares from 2017 to 2024 – Figure 8
Source: CEB
2023
2024
2022
2021
2020
2019
2018
2017
2016
2015
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
79,933
71,083
54,440
46,060
37,769
30,644
22,964
16,004
19,257
18,474
Loan balance (principal) in 2015–2024 (CZK million) – Figure 7
Source: CEB
0%
20%
40%
60%
80%
100%
2024/122023/122022/122021/122020/122019/122018/122017/12
CZK USD EUR
36 2 Annual report
2.1.3 Newly introduced products and activities
In line with the goals of the Economic Strategy of the Czech Republic and the Export Strategy of the
Czech Republic for the 2023 to 2033 period, CEB’s mission as a specialised banking institution is to
support the increase in added value of export-oriented economy sectors and to promote the international
competitiveness of Czech exports and the international expansion of Czech investors in foreign markets.
As the Czech Export Credit Agency (ECA), CEB oers products and services to Czech producers and
exporters that allow them to be part of the competition for specific contracts on the international market
under conditions comparable to those of foreign competitors from OECD countries. The Bank oers
products and services to Czech outbound investors that allow for the internationalisation of their business
activities through investments on international markets.
CEB's product range is primarily derived from the provisions of Act No. 58/1995 Coll., on Insurance and
Financing of Exports with State Support. The core supported financing products provided by CEB mainly
include short-term and long-term export loans, loans to finance export manufacturing, loans for foreign
investments and, finally, products aimed at supporting Czech export-oriented companies that aim to
strengthen their international competitiveness and whose exports represent at least a quarter of their
annual sales. CEB also provides its clients with a wide range of bank guarantees and the possibility of
accelerating payments for goods and services through the purchase of receivables. CEB's product oer
thus focuses on areas related to the life cycle of export transactions, i.e. on activities connected to the
existence of a specific export contract, as well as on areas related to competitiveness growth, increasing
the added value of export-oriented economy segments and the successful expansion of Czech investors
in foreign markets.
The Bank has recently been able to develop its product portfolio thanks to intensive cooperation with
the Ministry of Industry and Trade, the Ministry of Finance, trade unions, and chambers and associations
representing the interests of Czech export-oriented enterprises companies. Following the amendment to Act
No. 58/1995 Coll., which came into force at the end of 2022 and enabled CEB to introduce completely new
products aimed at supporting Czech export-oriented companies, another groundbreaking amendment to
Act No. 58/1995 Coll. successfully passed through the legislative process in 2024, which will enable CEB to
finance domestic supplies of Czech companies to their foreign customers operating in the Czech Republic.
Expanding the definition of exports will thus strengthen the ability of Czech companies to participate
Looking at the structure of the principal of provided loans by the contractual maturity of loans (Figure
9), medium-term loans with a maturity of more than 5 years dominate, which corresponds to the initial
maturity of volume-significant Direct Export Customer Loans and Direct Loans for Foreign Investments.
Loan portfolio – broken down by contractual maturity as at 31 December 2024 – Figure 9
Source: CEB
0% Short-term (up to 1 year)
0.05% Medium-term (1– 2 years)
5.05% Medium-term (2– 4 years)
10.83% Medium-term (4–5 years)
84.07% Long-term (more than 5 years)
37 2 Annual report
in the supply of strategic projects in nuclear energy, defence and security, and new technologies during
2025. CEB's product oer will thus become even more like that of foreign export banks and agencies that
support exports in competing economies.
CEB will continue to propose other directions and options for extending the product portfolio in cooperation
with business organisations, chambers, and associations, and to further specify its services. In servicing
the segment of small and medium-sized enterprises (SME), CEB will closely cooperate with the National
Development Bank (NDB) to eectively cover the needs of export-oriented SMEs.
2.2 Financial results, balance of assets and liabilities
Balance of assets and liabilities
The Bank’s total assets amounted to CZK 32,355 million at the end of 2024, which represents a year-on-year
decline of 4.4%. The balance sheet structure has been stable in the long term. The balance sheet items are
derived from the planned estimate of the development in asset transactions to which liabilities are adjusted.
Liabilities and equity
The Bank finances its business activities mainly through liabilities in the form of issued bonds, payables
to credit institutions and to entities other than credit institutions, which represent over 67% of the total
volume of its liabilities.
The key source of funding comprised bonds issued in EUR. As at 31 December 2024, they amounted to
CZK 12,879 million. Their amount thus decreased by 19.1% year-on-year.
Liabilities to credit institutions in the form of loans received from banks amounted to CZK 5,360 million,
which is a year-on-year decline of 2.7%. The volume of deposits received from entities other than credit
institutions was CZK 3,513 million, which is a year-on-year increase of 46%.
Other liabilities of CZK 515 million mainly include received financial collaterals (CZK 357 million)
and liabilities from lease of oce premises (CZK 45 million). As at 31 December 2024, provisions of
CZK 187 million mainly included provisions for issued guarantees and leers of credit of CZK 23 million,
provisions for loan commitments of CZK 68 million, and provisions for litigation of CZK 77 million.
The Bank reported equity in the total volume of CZK 9,840 million. Equity comprised a reserve fund
and another special fund (export risk fund) of CZK 2,735 million, retained earnings of CZK 1,368 million,
and 2024 profit to be distributed of CZK 742 million. Share capital remained unchanged at a level of
CZK 5,000 million.
38 2 Annual report
"Our goal is to support the Czech economy
to move into areas with higher added value.
We focus not only on traditional segments
such as mechanical engineering, defence
and security, and transport, but also on
growth segments, such as information and
communication technologies."
Ing. Daniel Krumpolc
Chairman of the Board of Directors
and Chief Executive Ocer of Česká exportní banka, a.s.
39 2 Annual report
Source: CEB
2023 2024
763
9,840
5,360
3,513
12,879
932
9,096
5,508
2,407
15,913
Other liabilities
Total equity
Liabilities to
credit institutions
Liabilities to entities other
than credit institutions
Liabilities from
issued debt securities
Source: CEB
2% Confirmed export leer of credit
11% Liabilities to entities other than credit institutions
17% Liabilities to credit institutions
30% Total equity
40% Liabilities from issued debt securities
Development in principal categories of liabilities and equity in 2023/2024 (CZK million)
Total equity and liabilities 2024
LIABILITIES AND EQUITY
(in CZK million) Year-on-year
index in
Financial liabilities measured at amortised cost , , .
of which: Liabilities to credit institutions , , .
Liabilities to entities other than credit institutions , , .
Liabilities from issued debt securities , , .
Hedging derivatives –
Other liabilities .
Provisions .
Current tax liabilities .
Total liabilities , , .
Share capital , , .
Revaluation reserve () () .
Retained earnings or accumulated loss from prior periods , .
Reserve funds .
Other special funds , , .
Profit or loss for the year .
Total equity , , .
Total liabilities and equity , , .
40 2 Annual report
Assets
Assets primarily include loans and other receivables at amortised cost, which amounted to CZK 29,344 million
at the end of 2024 and accounted for 90.7% of total assets. Of this amount, CZK 18,186 million are
receivables from entities other than credit institutions, which decreased by 5.2% year-on-year. Receivables
from credit institution primarily comprising cash deposited on fixed-term accounts with the Czech National
Bank under state treasury of CZK 6,638 million, fixed-term accounts with other credit institutions of
CZK 1,707 million and reverse repurchase agreements with the Czech National Bank of CZK 2,601 million,
increased by 2.9% in 2024 to CZK 11,158 million.
Part of funds from equity and temporarily available funds were allocated to high-quality and liquid local
and foreign securities in the past. The volume of the Bank's liquidity reserve held in securities totalled
CZK 1,702 million at year-end, i.e. an increase of 50.8%.
In accordance with the amendment to Act No. 58/1995 Coll. eective from the end of April 2020, the
Bank deposits available funds denominated in EUR, USD, and non-invested equity funds denominated
in CZK predominantly on treasury accounts maintained by the Czech National Bank. Accordingly,
CZK 1 million were deposited on current accounts and CZK 6,638 million as fixed-term deposits.
Cash in hand, cash with central banks, and other deposits repayable on demand of CZK 174 million mainly
include funds held in accounts with the Czech National Bank (CZK 13 million), the National Bank of Slovakia
(CZK 42 million), and funds on nostro accounts of other banks used for payments.
Other assets totalling CZK 1,011 million mainly include accruals for expected insurance benefits
(CZK 992 million).
ASSETS
(in CZK million) Year-on-year
index in
Cash in hand, cash with central banks and other deposits
repayable on demand .
Derivatives held for trading –
Debt securities at fair value recognised in other comprehen-
sive income .
Financial assets at amortised cost , , .
of which: Debt securities at amortised cost .
Loans and receivables at amortised cost , , .
of which: Receivables from credit institutions , , .
Receivables from entities other
than credit institutions , , .
Property, plant and equipment .
Intangible assets .
Other assets , , .
Deferred tax asset .
Total assets , , .
41 2 Annual report
Source: CEB
4% Other
5% Debt securities
35% Receivables from credit institutions
56% Receivables from entities other
than credit institutions
Assets 2024
Development in principal categories of assets in 2023 / 2024 (CZK million)
Source: CEB
2023 2024
1,309
1,702
11,158
18,186
2,695
1,129
10,846
19,186
Other
Debt
securities
Receivables from
credit institutions
Receivables from entities
other than credit institutions
Financial results
In 2024, the Bank generated profit before tax of CZK 936 million. After considering the income tax, the
Bank generated profit after tax of CZK 742 million, which is a year-on-year decline of 7.3%.
As part of its business activities in 2024, the Bank reported interest income totalling CZK 1,844 million, i.e.
a year-on-year increase of 12.2%. The loan principal amount at the end of 2024 was CZK 18,474 million, i.e.
a year-on-year decline of 4.1%. However, the average annual amount of loans in 2024 was 17% higher than
in 2023. This was caused by a higher volume of new business (CZK 7,565 million), a drawdown of loans
of CZK 8,576 million, a year-on-year increase of 31.8%, and depreciation of the Czech crown against the
euro and the US dollar in 2024. Interest income from provided loans, including purchases of receivables,
amounted to CZK 1,347 million, from interbank deposits, including the state treasury, of CZK 391 million,
and from reverse repo transactions with the Czech National Bank of CZK 64 million.
Interest expense amounted to CZK 685 million, a year-on-year increase of 28.8%, which was primarily
caused by higher market interest rates and depreciation of the Czech crown against the euro and the
US dollar. The expenses mainly relate to raising funds on the financial markets, especially in the form of
foreign currency bond issues. Net interest income amounted to CZK 1,159 million, which is a year-on-year
increase of 4.2%.
Net fee and commission income amounted to CZK 26 million, which is a year-on-year decline of 16.1%,
mainly due to lower income from issued guarantees and loan contract fees.
42 2 Annual report
Another component of the profit/loss is the profit from financial operations of CZK 5 million.
The Bank incurred total operating expenses of CZK 330 million, which is 7.8% more than in 2023. In addition
to administrative expenses of CZK 282 million operating expenses include depreciation/amortisation of
property, plant and equipment and intangible assets of CZK 36 million and other operating expenses
of CZK 12 million. Other operating expenses mainly include expenses incurred in the recovery of risky
receivables of CZK 1 million in 2024, and an unrecoverable portion of VAT.
Impairment losses on financial assets reached a positive amount (i.e. gain) of CZK 67 million. While the
cost of loss allowances amounted to CZK 64 million, the overall net gain was caused by income from
wrien-o / sold receivables. At the same time, provisions for loan commitments and guarantee of
CZK 6 million were released.
The loss arising from the operation of long-term supported export financing in line with Act No. 58/1995
Coll. is covered by subsidies from the state budget. In 2024, the Bank did not claim any subsidy; instead, it
generated a profit from this activity of CZK 648.5 million, which is part of the Bank’s total profit before tax.
2.3 Strategic targets of Česká exportní banka, a.s. in the business
and financial area
CEB’s strategic targets in the business and financial area are primarily as follows:
•
to be actively involved in the transformation of the Czech economy into an economy built on innovation,
added value, final products, and environmental responsibility
•
to support transactions with a good credit profile, and thus contribute to increasing the volume of
supported exports and investments and strengthening international competitiveness in accordance
with the Czech Economic Strategy of the Czech Republic and the Export Strategy of the Czech Republic
• to combine the role of a strategic specialised institution supporting exports and the role of an institution
complementing the oer of the commercial banking sector for Czech export-oriented companies and investors
PROFIT/LOSS
(in CZK million) Year-on-year
index in
Interest income , , .
of which: Interest income calculated using the eective
interest rate , , .
Interest expense () () .
Net interest income , , .
Fee and commission income .
Fee and commission expense () () .
Net profit or (loss) on financial operations, including state
subsidy .
Other operating income .
Other operating costs () () .
Administrative expenses () () .
Depreciation and amortisation () () .
Modification gains and losses ()
Impairment losses on financial assets not reported at fair
value through P/L (or reversal) .
Provisions for commitments and guarantees or their reversal .
Profit or (loss) before tax .
Income tax () () .
Profit or (loss) for the year .
43 2 Annual report
• to support strategic segments of the economy, including the defence and security industry or nuclear
power industry, which have a largely limited access to financing due to the corporate policies of
commercial banks
•
to support the traditional segments of the aviation industry, transportation, and transport infrastructure,
as well as industrial companies in their transition from the role of a conventional subcontractor to the
role of the final product producer or strategic subcontractor
• to support sectors and companies facing an ESG transition that have or will have limited access to
financing due to commercial banks' corporate ESG policies
• to support growth segments of the economy with high added value and investment intensity, such as
ICT, software, e-commerce, health care sector, biomedicine, environmental solutions, logistics, food
industry, and agriculture
•
to act as a reliable partner of commercial banks in club and syndicated financing and in creating
conditions for the internationalisation and international expansion of Czech export-oriented companies
and investors targeting foreign markets
•
to deepen its role of a competence centre in export financing, to strengthen the expertise of the
institution, and specialised know-how in customer loans, financing of security industry, sovereign
debtors, structured, acquisition and trade finance
•
in cooperation with key ministries, business organisations, chambers and associations, to bring its
clients solutions and products that are comparable to the "best practice" of advanced foreign ECAs
•
to achieve profit before tax when operating supported financing without requiring additional resources
from the state budget
• to maintain the Bank's capital adequacy in relation to regulatory limits, in particular for capital ratios
and large exposures
• to ensure the gradual growth of the Bank's balance by increasing the share of medium- and long-term
loans, i.e. to achieve a volume of principal of loan products able to generate sucient income to cover
the bank's operating costs
•
to stabilise the Bank's profitability in the medium term through the implementation of measures to
strengthen the bank's profitability in fundraising and liquidity management areas.
In 2025, CEB’s activities, its business and financial position will be primarily aected by the below
factors:
•
the geopolitical situation and security risks threatening the functioning of global supply chains,
availability and price of raw materials
•
changes in the global economy, including shortening supply chains, increasing pressure on strategic self-
suciency and raw material and subcontracting security, the sustainability concept (ESG), advancing
digitalization and automation, but also the risk of introducing protectionist measures
•
further development of the Czech economy and business environment, including regarding the elections
to the Chamber of Deputies of the Parliament of the Czech Republic in the autumn of 2025
•
exchange rates and market interest rates in connection with the monetary policy of the Czech National
Bank and the European Central Bank
• adding products and services for Czech suppliers for strategic projects in the Czech Republic (e.g.,
in the nuclear energy sector), following the amendment to Act 58/1995 Coll., which should come into
force in the first quarter of 2025
•
implementation of the ESG risk management system strategy in cooperation with stakeholders of
the state export support system, including implementation of steps to meet regulatory reporting and
financial reporting requirements
• increasing the share of digital technologies in communication with clients and automated processes
in the context of streamlining the bank's operations
• increasing cooperation with the National Development Bank (NDB) to eectively cover the needs of
the export-oriented SME segment
•
the implementation of Resolution No. 909 of 29 November 2023 by which the Government of the Czech
Republic decided to initiate the integration process of the National Development Bank and Česká
exportní banka, a.s., based on which CEB is to become a wholly owned subsidiary of NDB
• implementing individual measures to increase profitability, including the possibility of insuring CEB's
loan and guarantee transactions on the international commercial insurance market.
44 2 Annual report
2.4 Risks to which the Bank is exposed, objectives and methods of
risk management
Risk factors
The risk management concept in the Bank in all risk management segments builds on the rules of
prudent operation determined by the regulator. In its risk management, the Bank traditionally adheres to
the principle of a limited risk profile, which is based on the system of internal limits for individual types of
risks, products, and debtors.
The risk management process in the Bank is independent of its business units. The executive unit for risk
management is the Risk Management Division. The Credit Risk Management and Loan Analysis Department
has been charged with managing credit risk in relation to assessing the credit risk of counterparties and
performing analyses of individual transactions. The Enterprise Risk Management Department manages
credit risk at the portfolio level, market risks, operational risks, liquidity risks and concentration risks. The
risk management process is supervised by the Bank’s Board of Directors, which is regularly informed
about risk exposures. The Board of Directors determines and regularly assesses the acceptable level
of risk, including credit risk, market risk, operational risk, concentration risk and the risk of liquidity and
excessive leverage.
To comply with the statutory duty in the planning and on–going maintenance of the internally determined
capital in the amount, structure and distribution that is sucient to cover all risks to which the Bank is or
may be exposed, the Bank maintains the Internal Capital Adequacy Assessment Process (ICAAP). Methods
used to assess and measure individual risks included in the ICAAP that are used by the Bank in relation
to its risk profile are approved by the Board of Directors. Quantifiable risks are assessed in the form of
internally determined capital needs. Other risks as part of the ICAAP are covered by qualitative measures
in risk management, organisation of processes and control mechanisms (Code of Ethics, communication
policy, etc.). The internal capital adequacy in 2024 was sucient to cover the risks to which the Bank is
exposed.
The Bank makes use of the Internal Liquidity Adequacy Assessment Process (ILAAP) system. The system
is used to meet the requirements for maintaining a reliable and specific framework for the management
of liquidity and financing risks, including the process of identifying, measuring and reviewing liquidity and
financing risks.
During 2024, the Bank did not exceed the limit for large exposures. At the end of 2024, the Bank did not
exceed any regulatory limit.
Individual types of risks are managed by the Bank in line with applicable legislation, the Bank’s regulations
and the best practice.
2.4.1 Credit risk
Credit risk, i.e. the risk of losses owing to a counterparty’s default in meeting its obligations under a credit
agreement based on which the Bank has become the contractual party’s creditor, is managed by the
following credit risk evaluation system:
• Debtor’s risk management
— Assessing and monitoring the debtor’s credit rating and determining the debtor’s internal rating
— Monitoring the relations of entities and the structure of financially related entities
— Determining the limit applicable to the debtor or a financially related group of entities
— Monitoring credit exposure with respect to entities or financially- or otherwise-related groups of
entities
— Classifying receivables, and creation of loss allowances and provisions.
45 2 Annual report
• Transaction risk management
—
Assessing and monitoring specific transaction risks, particularly in terms of the quality of collateral
and determining the acceptable level of collateral, and
— Regular on-site visits.
• Portfolio credit risk management
— Regular monitoring of portfolio credit risk
— Regular stress testing of portfolio credit risk, and
— Determining limits to mitigate portfolio credit risk.
• Credit risk concentration management
— Concentration risk in CEB principally arises from credit risk concentration
—
Daily monitoring of credit risk concentration in terms of the debtor’s country of the registered oce
and industry, and
— Seing limits to mitigate credit risk concentration.
To minimise credit risk in providing supported financing, CEB employs standard banking credit risk
mitigation techniques, such as EGAP credit risk insurance. At present, CEB uses no credit derivatives to
minimise credit risk.
For credit risk and concentration risk, CEB maintains an established management system that monitors
the exposures on a daily basis, comparing them against limits designated by the regulator or derived from
acceptable risk levels. The results of credit portfolio analyses, including the results of the stress testing of
portfolio credit risk, are submied, on a regular basis, to the senior managers in charge of risk management.
2.4.2 Market risk
Market risk is the risk of suering losses owing to changes in market factors, i.e., market prices, exchange
rates and interest rates on financial markets. Market risk management in CEB is a process that includes
defining, measuring and an on-going review of the application of limits, and analysing and regularly
reporting individual risks to CEB’s Treasury, commiees and management so as to manage negative
financial impacts potentially resulting from these changes in market prices.
CEB is not exposed to risk on shares and commodity risk. To manage foreign currency risk and interest
rate risk, CEB uses the following methods:
• Interest rate risk management
— GAP analysis
— Change in Net Interest Income – NII.
• Currency risk management
— Analysis of currency sensitivity factors.
• Aggregate market risk management
— Economic Value of Equity (EVE).
CEB uses the standard method according to EBA/RTS/2022/09 Final report (Draft Regulatory Technical
Standards specifying standardised and simplified standardised methodologies to evaluate the risks arising
from potential changes in interest rates that aect both the economic value of equity and the net interest
income of an institution’s non-trading book activities in accordance with 84(5) of Directive 2013/36/EU).
To minimise mainly currency risks, CEB currently uses forward transactions.
To manage market risk, CEB maintains an established management system that monitors risk exposure
on a daily basis, comparing it against limits derived from acceptable risk levels.
46 2 Annual report
2.4.3 Refinancing risk
To monitor refinancing risk, the Bank measures the impact on the Bank’s profit/loss account of increased
interest expenses arising from an increased credit spread that the Bank would have to incur to become
suciently liquid during the global downturn. The above measurement also serves to manage the impact
of the risk of credit interest rate spread.
Refinancing risk is managed by means of a suitable funding structure, mainly in terms of maturities and
volumes of funds.
2.4.4 Liquidity risk
To manage liquidity risk, CEB maintains an established management system that monitors the liquidity
status and outlook on a daily basis, comparing them against the limits set. The basic pre-condition of
liquidity risk management involves securing survival for at least two months.
Liquidity risk is managed by:
— Measuring and comparing the inflow and outflow of cash, i.e., monitoring net cash flows for a period
at least five working days in advance
— Measuring and limiting the minimum survival period in individual significant currencies and in total for
the Bank
— Quarterly measurements using stress scenarios
— Maintaining the liquidity coverage ratio
— Maintaining the net stable funding ratio, and
— Gap analyses that measure the maximum cumulated outflow of cash in individual currencies and time
gaps.
CEB maintains a sucient liquidity reserve predominantly in the form of highly liquid securities and
exposures to the Czech National Bank. To deal with liquidity problems under extraordinary circumstances,
CEB has emergency plans in place. In 2024, CEB had no problems ensuring sucient liquidity.
2.4.5 Operational risk
CEB manages the risk of losses arising from the inappropriateness or failure of internal processes, human
error, failures of systems, the impact of external events (e.g. natural disasters), and the breach of or
non-compliance with legal regulations. The key tool CEB uses to manage its operational risk in divisions
where operational risk is measurable is the early warning system, which is based on a system of risk
indicators and warning limits that signal the greater probability of the occurrence of certain operational risks.
In 2024, the Bank updated its assessment of operational risks in the individual divisions on an on-going basis
in the form of self-assessment and with a methodological support from the Enterprise Risk Management
Department.
The instances of operational risks were not significant in terms of the volume, amount and impact on
Bank's operations in 2024.
47 2 Annual report
December CZK million
Capital ,
Tier (T) capital ,
Common equity tier (CET) capital ,
CET capital instruments ,
Accumulated other comprehensive income (OCI) and other provisions ,
Retained earnings ,
Adjustments of the CET capital due to the utilisation of prudential filters ()
() Other intangible assets
Other temporary adjustments of the CET capital
Other deductions from the CET capital – methodology changes (transition to IFRS )
2.4.6 Capital adequacy and capital requirements
December CZK million
Risk
exposures
Capital
requirement
TOTAL ,
Total risk-weighted exposures in respect of credit risk under STA ,
Exposures to central governments and central banks
Exposures to institutions
Exposures to corporates ,
Exposures in default
Other exposures
Total risk-weighted exposures in respect of position, foreign currency
and commodity risks – currency transactions
Total risk-weighted exposures in respect of operational risk – BIA ,
Risk-weighted exposures in respect of
credit valuation adjustment (CVA) – standardised method
December CZK million
Capital ratios
CET capital ratio .
Surplus () / shortage () of the CET capital ,
T capital ratio .
Surplus () / shortage () of the T capital ,
Total capital ratio .
Total capital surplus () / shortage () ,
Total capital ratio SREP (TSCR) .
TSCR – comprising CET capital .
TSCR – comprising T capital .
Overall capital requirement (OCR) .
OCR – comprising CET capital .
OCR – comprising T capital .
Overall capital requirement (OCR) and the recommended capital planning reserve (PG)) .
OCR and PG – comprising CET capital .
OCR and PG – comprising T capital .
48 2 Annual report
2.4.7 Risk factors potentially aecting the capacity of the Bank to meet its obligations
to investors arising from securities
The Bank’s ability to meet its obligations to investors arising from securities is unconditionally and
irrevocably guaranteed by the state pursuant to Act No. 58/1995 Coll.
2.5 Corporate governance report
2.5.1 Information on codes
The Corporate Governance Code of Česká exportní banka a.s. (KOD 01) (the “Code”) is based on the OECD
principles. Deviations from the Code’s principles are disclosed in the text. The Corporate Governance
Code of Česká exportní banka, a.s. is publicly available in Czech on CEB’s website: hps://www.ceb.cz/o-
bance/kodexy/.
The Bank’s principles of corporate governance build on the OECD general principles of corporate
governance whereby neither the Bank’s legal position nor the shareholder structure are modified by the
main principles. The Bank’s governance is based on the main pillars listed below:
Fair Treatment of shareholders
The Bank honours the rule of the equal treatment of shareholders of the same class, pursuant to Act No.
90/2012 Coll., on Business Corporations and Cooperatives (the Business Corporations Act). The Bank
is aware of the risk of potential misuse of the information on its activities, particularly information on
the transactions being prepared, both by its employees and members of the Board of Directors and the
Supervisory Board. The Bank has issued, and permanently monitors adherence to, the Employee Code of
Ethics (KOD 02), which is available at CEB’s website: hps://www.ceb.cz/o-bance/kodexy/.
CEB considers it crucial that the entire decision-making be not influenced by the potential interests of
persons with the decision-making powers who are engaged in the decision-making process, i.e. Board of
Directors or Supervisory Board members. Should this be the case, these persons are therefore obliged to
announce, prior to the commencement of the decision-making process, that they have an interest in its
result, and abstain from taking part in the decision-making process.
Disclosures and transparency
CEB meets the statutory reporting duty, under which primary emphasis is placed upon a timely, accessible,
and balanced disclosures concerning CEB's current activities as well as anticipated development. The
information is rendered to the business community, public administration bodies, employees and other
stakeholders. Providing the aforementioned information on a regular basis is considered by the Bank
to be an ecient instrument not only for meeting its statutory obligations but mainly for establishing
a good reputation. With respect to information disclosures, CEB strictly adheres to the relevant statutory
provisions concerning bank and business secrets.
Responsibility of the Board of Directors and Supervisory Board of CEB
The exact definition of the powers of the Board of Directors and the Supervisory Board is part of the
Bank’s Articles of Association, which are available in the Collection of Deeds of the Commercial Register
held by the Municipal Court in Prague. The Board of Directors’ composition, manner of decision-making
and powers are provided for by the Bank’s Articles of Association. The Bank’s Board of Directors has the
responsibility towards the shareholders for:
49 2 Annual report
a) The strategic management of CEB reflected in the security, business and HR policies, the risk
management strategy, the remuneration policy and the compliance policy, with senior managers
responsible for their implementation
b) The establishment and assessment of the management and control system, and for permanently
maintaining its functionality, eectiveness and eciency
c) Statutory compliance of the management and control system and for providing related activities
with due professional care, and
d) Establishing principles of human resources management including the requirements for qualification,
experience and knowledge for individual positions and the manner in which they are to be
demonstrated and verified.
The Supervisory Board’s composition, manner of decision-making and powers are provided for by the
Bank’s Articles of Association. The Supervisory Board oversees the exercise of the Board of Directors’
powers as well as realisation of CEB's business activities. In particular, the Supervisory Board:
a) Supervises as to whether the management and control system is functional and ecient and
performs the system’s regular assessment
b) Regularly debates the strategic direction of CEB as well as maers concerning the regulation of
the risks to which CEB is or may be exposed
c) Participates in directing; planning and assessing the internal audit activities and assesses
compliance, and
d) Approves and regularly assesses the summary remuneration principles for selected groups of
employees whose activities significantly aect CEB's overall risk profile.
Pursuant to Act No. 93/2009, on Auditors, the Bank has established the Audit Commiee whose position
and powers are provided for by the Bank’s Articles of Association.
2.5.2 Shareholder rights
The Bank’s shares have been issued in the registered book-entry form and are not tradeable. The list of
shareholders replaces the records of book-entered securities maintained by the Central Depositary in
the Central Records of Securities. One vote belongs to every one million of CEB's nominal value; a total of
5,000 votes are divided among all CEB's issued shares. At least two thirds of CEB’s issued shares must
be held by the Czech Republic, which executes the shareholder rights through the Ministry of Finance of
the Czech Republic. The exercise of the voting right by a shareholder is carried out mainly by voting at
the General Meeting or by voting per rollam (outside of the General Meeting). More detailed regulations
are included in CEB's Articles of Association.
2.5.3 Internal control system
The internal control system fully complies with the statutory requirements. It also includes the risk
management, compliance and internal audit rules. The internal control functions have further powers to
eectively execute their functions. a significant element of the Internal control system is also to ensure
and regularly assess the credibility and professional competences of the members of the Bank's bodies
and persons holding the key oces. The eectiveness of the management and control system of the
Bank is assessed by the internal audit division on annual basis.
50 2 Annual report
2.5.4 Description of the decision procedures of the Bank's bodies and commiees
General Meeting
The General Meeting takes place at least once a year, however no later than four months from the end
of the reporting period and has a quorum if the shareholders present hold shares in the total nominal
value greater than 50% of the Bank’s share capital. If the General Meeting does not have a quorum, the
Board shall call a substitute General Meeting in compliance with the relevant provisions of the special
legal regulation.
The General Meeting votes by acclamation unless the General Meeting decides otherwise. The General
Meeting adopts decisions by a majority of the votes of the present shareholders, unless special legal
regulations or the Articles of Association require a larger majority. Changes to the Articles, increases or
decreases in the registered capital and the dissolution of the Bank with liquidation is decided are decided
upon by the General Meeting if approved by the votes of at least two-thirds of the present shareholders.
At General Meetings, proposals presented by the convenor of the General Meeting are voted on first and
subsequently other proposals and counterproposals are voted on in the order as submied.
The state exercises its shareholder’s rights by means of the Ministry of Finance.
Supervisory Board
The Supervisory Board consists of five members.
Meetings of the Supervisory Board are convened by its Chairman or Vice-Chairman as necessary, usually
once a month. The Supervisory Board has a quorum if at least three of its members are present, with
resolutions adopted by a majority of all of its members. Each member has one vote. In the event of a tied
vote, the Chairman does not have the casting vote. Minutes are taken on all meetings of the Supervisory
Board and are to be signed by the Chairman of the Supervisory Board; a list of aendees is aached to
the minutes.
Supervisory Board meetings via technical means are admissible; adoption of resolutions outside the
meeting (per rollam) is admissible subject to a prior consent by all members of the Supervisory Board.
Board of Directors
The Board of Directors consists of three members.
Meetings of the Board of Directors are convened by its chairman or an authorised Vice-Chairman as
necessary, usually twice a month. The Board of Directors has a quorum if an absolute majority of its
members is present. The Board of Directors decides by resolutions adopted by a majority of votes of its
members. Each member of the Board of Directors has one vote. Minutes are taken on the course of the
Board of Directors’ meeting and its resolutions and are to be signed by the Chairman of the Board of
Directors and the minute- taker; a list of aendees is aached to the minutes.
Meetings of the Board of Directors via technical means are admissible; adoption of resolutions outside
the meeting (per rollam) is admissible subject to a prior consent by all members of the Board of Directors.
Audit Commiee
The Audit Commiee consists of three members.
Meetings of the Audit Commiee take place as necessary, at least four times a year. If necessary,
51 2 Annual report
the Chairman of the Audit Commiee, or the authorised member of the Audit Commiee if the Chairman
is not present, will operatively convene an extraordinary meeting. The Audit Commiee has a quorum if
an absolute majority of its members is present.
Resolutions of the Audit Commiee are adopted by an absolute majority of the votes of all members. Each
member has one vote. Minutes are taken on all meetings of the Audit Commiee and are to be signed by
the Chairman of the Audit Commiee; a list of aendees is aached to the minutes. In urgent cases that
cannot be delayed, the Audit Commiee may initiate a per rollam resolution.
Audit Commiee meetings via technical means are admissible; adoption of resolutions outside the meeting
(per rollam) is admissible subject to a prior consent by all members of the Audit Commiee.
Credit Commiee
The Credit Commiee consists of seven members.
Credit Commiee meetings take place as necessary, usually twice a week. The Credit Commiee has
a quorum if at least four of its members are present, of which at least two are members of the Board of
Directors and two are members of the Risk Management Division. a resolution is adopted if approved by
the votes of an absolute majority of the members present, provided that the proposal was voted for by
two members of the Board of Directors and two members of the Risk Management Division. Each member
has one vote. The Credit Commiee arrives at conclusions by the voting of its members in respect of
individual items on the agenda.
In urgent cases that cannot be delayed the Credit Commiee may make a per rollam resolution. The per
rollam resolution is adopted if at least four members of the Credit Commiee approve it and if it was
voted for by two members of the Board of Directors and two members of the Risk Management Division.
Assets and Liabilities Management Commiee (ALCO)
The ALCO consists of seven members.
ALCO meetings take place as needed, usually once a month. The ALCO has a quorum if at least four of its
members are present, of which one is the Chairman or the Vice-Chairman of the ALCO and, simultaneously,
at least one representative of the CEO’s Division, one representative of the Finance and Operations Division
and one member of the Risk Management Division are present. Each ALCO member has one vote.
The ALCO adopts conclusions by the voting of its members on individual issues of the agenda. a proposal
presented by the ALCO Chairman, or by the ALCO Vice-Chairman, if the Chairman is not present, is
voted on first and subsequently counterproposals are voted on in the order as submied. a resolution is
adopted if approved by an absolute majority of the votes of the ALCO members present. If the resolution
concerns selected issues specified in the ALCO Rules of Procedure, it may be adopted only if the Head
of the Banking Risk Management department who is a member of the ALCO approves it.
In urgent cases that cannot be delayed, the ALCO Chairman, or the Vice-Chairman if the Chairman is not
present, may initiate a per rollam resolution. The per rollam resolution is adopted if it is approved by an
absolute majority of all ALCO members. If the resolution concerns selected issues specified in the ALCO
Rules of Procedure, it may be adopted only if the Head of the Banking Risk Management department who
is a member of the ALCO approves it.
Information Technologies Development Commiee (ITDC)
The ITDC consists of seven members.
52 2 Annual report
ITDC meetings are convened by the ITDC’s Chairman, or the Vice-Chairman if the Chairman is not present.
The ITDC has a quorum if at least four of its members are present. Each ITDC member has one vote.
a resolution is adopted if approved by an absolute majority of the votes of the ITDC members present. In
the event of a tied vote, the Chairman has the casting vote.
In urgent cases that cannot be delayed, the ITDC Chairman, or the Vice-Chairman if the Chairman is not
present, may initiate a per rollam resolution. The per rollam resolution is adopted if at least four ITDC
members agree with its adoption.
Operational Risk Management Commiee (ORCO)
The ORCO consists of seven members.
The ORCO has a quorum if at least four of its members are present, of which one is an ORCO member
for the Risk Management Division. Each ORCO member has one vote. Conclusions on each issue on
the agenda are voted on individually. a proposal presented by the ORCO Chairman is voted on first and
subsequently counterproposals are voted on in the order as submied. a resolution is adopted if approved
by an absolute majority of votes of the ORCO members present and if at least one ORCO member for the
Risk Management Division voted for adopting the resolution.
In urgent cases that cannot be delayed, the ORCO Chairman, or the Vice-Chairman if the Chairman is not
present, may initiate a per rollam resolution.
The per rollam resolution is adopted if at least four ORCO members approve its adoption and if the
ORCO Chairman and at least one ORCO member for the Risk Management Division voted for adopting
the resolution.
2.5.5 Remuneration of persons with managing powers
With regard to the application of the proportionality principle, CEB has not set up a Remuneration Commiee
and no part of remuneration is paid out in non-cash instruments to persons with managing powers.
In 2024, CEB regarded the members of the Board of Directors and the members of the Supervisory Board
as having managing powers. The Chairman of the Board of Directors is also the CEO, and the members
of the Board of Directors also hold the positions of Deputy CEOs.
Board of Directors
The Board of Directors is the statutory body managing the activities of CEB and acting on its behalf.
Members of the Board of Directors hold the positions of the CEO and Deputy CEOs for the respective
areas of the Bank’s activities they are entrusted with (refer to Section 1.5 Administrative, Management
and Supervisory Bodies of CEB and Related Commiees). Members of the Board of Directors perform
their duties with due managerial care, carefully and with the necessary knowledge. They are remunerated
in line with the Contract on Holding the Oce of a Member of CEB’s Board of Directors in compliance
with the relevant provisions of Act No. 90/2012 Coll., on Business Corporations and Cooperatives, as
amended, which is concluded for a functional period of five years. This Contract provides for the rights and
obligations of contractual parties in respect of holding the oce of a member of CEB’s Board of Directors.
The Contract was approved by CEB’s Supervisory Board/General Meeting. The amount of remuneration
of the members of the Board of Directors is approved by the General Meeting.
60% of total annual remuneration of a member of the Board of Directors in charge of managing CEB
(Chief Executive Ocer) is a fixed component and 40% is a variable component; 50% of total annual
53 2 Annual report
remuneration of a member of the Board of Directors in charge of the Finance and Operations Division is
a fixed component and 50% is a variable component; 62.5% of total annual remuneration of a member
of the Board of Directors in charge of the Risk Management Division is a fixed component and 37.5% is
a variable component. The remuneration of the CEO and Deputy CEOs was paid out in the form of the
base component, which was the remuneration for the performed work. The amount of the remuneration
was approved by the General Meeting in compliance with CEB’s Articles of Association. The remuneration
policy for the members of CEB’s Board of Directors, referred to as the Principles of Remunerating Managers
and Members of Bodies, is defined and approved by the General Meeting. The variable component of
the remuneration of the CEO and Deputy CEOs is derived from assessing their performance, which is
measured against defined performance criteria, Bank-wide and individual. The Bank-wide performance
criteria are always set for the calendar year and approved by the General Meeting and subsequently
assessed by CEB’s Supervisory Board. The Bank-wide performance criteria include financial indicators
(for 2024: modified cost/income ratio, administrative expenses and amortisation/depreciation), business
indicators (for 2024: total volume of new transactions, volume of loans drawn), and portfolio and risk
indicators (for 2024: proportion of NPL to the Bank’s aggregate portfolio, the balance of loss allowances
and provisions for loan portfolio and guarantees in Stage II and III). The assessment of the performance
criteria listed above is made once a year after the termination of the assessed year, utilising the results
of the assessment as of 31 December of the relevant year.
Furthermore, 50% of the variable component of the remuneration granted for the assessed year is paid
out to the members of the Board of Directors by the 10th day of the month following the month in which
the entitlement to the variable remuneration component was decided by the Supervisory Board and
the payment of the other 50% of the variable component is postponed. The deferred portion of the
remuneration’s variable component is evenly distributed over the 4-year deferral period and the same
amount is paid out each year during this period. The claim for such payment always arises from the
assessment of the defined financial and non-financial indicators of CEB’s performance and based on
the methodology for retrospective assessment of the quality of loan production (malus methodology).
CEB’s Supervisory Board
CEB’s Supervisory Board is a control body, supervising the exercise of powers of CEB’s Board of Director
in performing the Bank’s business activities.
The Supervisory Board has five members. As at 31 December 2024, the Supervisory Board had all five
members performing their duties. Its members are elected by the General Meeting and include persons
proposed by shareholders. They are remunerated in line with the Contract on Holding the Oce of
a Member of CEB’s Supervisory Board in compliance with the relevant provisions of Act No. 90/2012 Coll.,
on Business Corporations and Cooperatives, as amended, which is concluded for a functional period of
five years. The Contract provides for the rights and obligations of contractual parties in respect of holding
the oce of a member of CEB’s Supervisory Board. The Contract on Holding the Oce of a Member of
CEB’s Supervisory Board was approved by the General Meeting. The members of CEB’s Supervisory board
are remunerated in the amount approved by the General Meeting. The remuneration for performing the
duties of a member of the Supervisory Board was paid out providing that the member was not subject
to the limitation specified in Section 303 of Act No. 262/2006 Coll., the Labour Code, as amended, or
a similar limitation defined in the relevant legal regulation. The total amount of the annual remuneration of
the members of the Supervisory Board in 2024 is broken down into the base component and the variable
component, which make up 80% and 20%, respectively.
The remuneration of the members of the Supervisory Board was paid out in the form of the base component
which was the remuneration for the performed work. The remuneration policy for the members of the
Supervisory Board, referred to as the Principles of Remunerating Managers and Members of Bodies, is
defined and approved by General Meeting. The variable component of the remuneration of the members
of the Supervisory Board is derived from assessing the performance of their activities, which is measured
based on meeting the defined performance criteria. The individual performance criteria are always set
for a calendar year and approved and subsequently assessed by the General Meeting. The performance
54 2 Annual report
Given that the Bank does not control any other entities, the individuals specified in the table above received
no income in cash or in kind from controlled entities.
Income received by executives with managing powers in cash and in kind for 2024
Income received by persons with managing
powers from the issuer (CEB) in CZK thousand
Member of CEB’s Board
of Directors CEB
Members of the
Supervisory Board CEB
Other persons with
managing powers
In cash , ,
In kind
Total , ,
criteria are divided into five areas: CEB’s strategy (for 2024: Discussion of the draft of Updated CEB
Strategy for the 2025 to 2027 period, including procedural steps with potential Integration of CEB and
NDB), Integration of CEB and NDB (for 2024: Active participation in the coordination of the process and
ensuring the implementation of the steps required by CEB under the CEB and NDB Integration Project),
CEB IT Strategy (for 2024: Discussion of the CEB IT Action Plan for the 2024 to 2025 period in relation to
the Strategy. The Action Plan will include an ongoing assessment of the current state of IT and priorities
with respect to further digitisation of banking processes), Financial and Business Plan (FBP) 2025 (for
2024: Active cooperation in the preparation and negotiation of FBP for 2025) and Regulatory Changes
2024 and 2025 (Ongoing monitoring of the implementation of the main regulatory changes eective
in 2024 and 2025 with emphasis on the implementation of ESG, CRR and DORA). The assessment of
performance criteria is made once a year, after the termination of the assessed year, utilising the results
of the assessment as of 31 December of the relevant year.
100% of the variable component of the remuneration granted for the assessed year is paid out to the
members of the Supervisory Board by the 10th day of the month following the month in which the entitlement
to the variable remuneration component was decided upon by the General Meeting.
Diversity policy
CEB does not formally apply a diversity policy to its Board of Directors and Supervisory Board as the
stang of these bodies is fully under the control of the General Meeting. The second reason is the fact
that CEB is a bank having the state as the direct majority shareholder (84%), its shareholder rights are
exercised by the Ministry of Finance and the HR policy is entirely under the control of the state represented
by the above ministry, which selects candidates in line with the state’s idea of CEB’s activities, involving the
support of Czech exports, investments, and competitiveness as principal business activities in accordance
with Act No. 58/1995 Coll., On Insurance and Financing of Exports with State Support, as amended.
There is no discrimination of candidates in the recruitment process. Selection of candidates for both
bodies takes place in line with Act No. 353/2019 Coll., on the Selection of Members of Management and
Supervisory Bodies of Legal Entities with State Participation (Nomination Act), as amended. The selection
commiee, appointed by the Ministry of Finance, primarily assesses qualifications of candidates, both
in terms of professional and managerial experience and in terms of education. The winner (nominee) is
subsequently presented to the government’s Commiee for Personnel Nominations, which either does or
does not recommend the proposed nomination.
Candidates must also adhere to general guidelines for assessing the suitability of members of a management
body and persons in key positions determined by the EBA, such as evaluation of experience, reputation,
or prudential requirements. In June 2022, a Nomination Commiee was newly established to make these
assessments as an advisory body to CEB's Supervisory Board. The status of this commiee is defined in
the Rules of procedure of CEB's Nomination Commiee.
55 2 Annual report
In 2024, the Bank incurred expenses of CZK 150 thousand, relating to the verification of the amount of
promotional loans, and CZK 1,250 thousand for a review of the interim financial statements prepared in
connection with the renewal of the bond issue programme. Further, the Bank paid CZK 1,637 thousand for
the Comfort Leer as part of the EMTN programme update and CZK 24 thousand for the participation of
its employees in a public training held by KPMG Česká republika, s. r. o.
(TCZK)
Statutory audit of the annual financial statements , ,
Other assurance services
Review of interim financial statements ,
Other non-audit services , ,
Total , ,
2.5.6 Authorised auditors
In a 2021 tender, the Bank selected KPMG Česká republika Audit, s.r.o., with its registered oce
at the address stated below, to be its auditor.
Pobřežní 648/1a
186 00 Praha 8
The contract was signed for the period from 2021 to 2024.
2.5.7 Court and arbitration proceedings
CEB is involved in disputes related to the recovery of debts, mainly as a creditor in insolvency proceedings
brought against the assets of CEB debtors. The financial impacts of the outcomes of these proceedings
only represent potential income for CEB (not an expense), and given their amount, their eect on CEB’s
operating profit or financial situation is insignificant.
In addition, CEB has one passive lawsuit for the payment of financial performance under a non-competition
clause.
2.5.8 Significant contracts of Česká exportní banka, a.s., as issuer of securities
During 2024, CEB concluded no significant contracts (except for the contracts concluded as part of the
issuer’s regular business transactions) that could establish any liability or claim which would be significant
with regard to CEB's ability as the issuer to meet its obligations arising from issued bonds towards the
securities holders.
2.6 Provision of information pursuant to Act No. 106/1999 Coll.,
on Free Access to Information
Number of requests for information filed, and of decisions to dismiss the request issued
In 2024, CEB received 3 requests for information from applicants and issued one decision to partially
refuse a request and two decisions to refuse a request.
56 2 Annual report
Number of appeals filed against the decisions
Three appeals against CEB’s decisions were filed in 2024.
Copy of significant parts of each court judgements reviewing the lawfulness of the legally bound
person’s decision to dismiss the request for information, with an overview of all expenses incurred
by the legally bound person in connection with the judicial proceeding, including costs of its own
employees and costs of legal representation
In 2024, there were no judgements concerning the exercise of the right to information involving CEB.
Number of exclusive licences provided, including a reasoning of the need to provide an exclusive
licence
In 2024, no exclusive licences were provided.
Number of complaints filed under Section 16a, reasons for their filing and a brief description of how
they were seled
In 2024, no complaints were filed by CEB under Section 16a of the Act on Free Access to Information.
Further information on the application of the Act
In accordance with Section 5 (3) of the Act on Free Access to Information, information provided is also
published on the website on hps://www.ceb.cz/informace/povinne-zverejnovane--informace/poskytnute-
informace-na-zaklade-zakona-o-svobodnem-pristupu-k-informacim/.
Prague, 20 March 2025
Ing. Daniel Krumpolc
Chairman of the Board of Directors
Ing. Petr Vohralík
Vice-Chairman of the Board of Directors
57
Financial statements
0
3
58 3 Financial Statements
3 Financial statements
Income statement
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Cash flow statement
1 General information
2 Accounting policies
(a) Basis of presentation
(b) Foreign currency translation
(c) Derivative financial instruments
(d) Interest income and expense
(e) Fee and commission income
(f) Financial assets
(g) Impairment of financial assets
(h) Agreements for the purchase and resale of securities
(i) Property, plant and equipment and intangible assets
(j) Leases
(k) Cash and cash equivalents
(l) Employee benefits
(m) Taxation and deferred income tax
(n) Financial liabilities
(o) Share capital
(p) Segment reporting
(q) State subsidy
(r) Provisions
(s) Guarantees and loan commitments
(t) Collateral and guarantees received
3 Risk management
(a) Strategy for using financial instruments
(b) Credit risk
(c) Market risk
(d) Currency risk
(e) Interest rate risk
(f) Liquidity risk
(g) Fair values of financial assets and liabilities
(h) Capital management
4 Critical accounting estimates and judgements in applying accounting policies
(a) Impairment losses on financial assets, loan commitments,
guarantees and contractual assets
(b) Assessment of the business model and contractual cash flows
(c) State subsidy
(d) Income tax
5 Operating segments
6 Net interest income
FINANCIAL STATEMENTS IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING
STANDARDS AS ADOPTED BY THE EUROPEAN UNION FOR THE YEAR ENDED 31 DECEMBER 2024
Contents
59 3 Financial Statements
7 Net fee and commission income
8 Net profit or (loss) from financial transactions including state subsidy
9 Administrative expenses, depreciation/amortisation and other operating costs
10 Net gain on impaired assets and wrien-o receivables
11 Income tax
12 Cash and cash with central banks and other deposits repayable on demand
13 Loans and receivables at amortised cost
14 Debt securities
15 Property, plant and equipment
16 Intangible assets
17 Other assets
18 Financial liabilities at amortised cost
19 Other assets
20 Provisions
21 Deferred income tax
22 Share capital
23 Revaluation reserve
24 Reserve funds
25 Related party transactions
26 Subsequent events
60 3 Financial Statements
Income statement
Prepared in accordance with International Financial Reporting Standards as adopted by the European
Union
(MCZK) Note
Interest income , ,
of which: Interest income calculated using the eective interest rate , ,
Interest expense () ()
Net interest income , ,
Fee and commission income
Fee and commission expense () ()
Net profit or (loss) on financial operations, including state subsidy
Other operating income
Other operating expenses () ()
Administrative expenses () ()
Depreciation and amortisation () ()
Modification gains and losses ()
Impairment losses on financial assets not reported at fair value through P/L
(or reversal)
Provisions for commitments and guarantees or their reversal
Profit or (loss) before tax
Income tax () ()
Profit or (loss) for the year
Statement of comprehensive income
Prepared in accordance with International Financial Reporting Standards as adopted by the European
Union
The notes are an integral part of the financial statements.
(MCZK) Note
Profit or (loss) for the year
Items that may be subsequently reclassified to profit of loss
Total change in other comprehensive income from revaluation of financial assets
Other comprehensive income
Total comprehensive income
61 3 Financial Statements
The notes are an integral part of the financial statements.
Statement of financial position
Prepared in accordance with International Financial Reporting Standards as adopted by the European
Union
(MCZK) Note
ASSETS
Cash in hand, cash with central banks and other deposits repayable on de-
mand
Debt securities at fair value recognised in other comprehensive income b,
Financial assets at amortised cost , ,
Debt securities at amortised cost b,
Loans and receivables at amortised cost b, , ,
Property, plant and equipment
Intangible assets
Other assets , ,
Deferred tax assets
Total assets , ,
LIABILITIES AND EQUITY
Financial liabilities at amortised cost , ,
Other liabilities
Provisions b,
Current tax liabilities
Total liabilities , ,
Share capital , ,
Revaluation reserve () ()
Retained earnings or accumulated loss from prior periods ,
Reserve funds
Other special funds , ,
Profit or (loss) for the year
Total equity , ,
Total liabilities and equity , ,
62 3 Financial Statements
Statement of changes in equity
Prepared in accordance with International Financial Reporting Standards as adopted by the European
Union
The notes are an integral part of the financial statements.
(MCZK) Note Share
capital
Retained
earnings
Reserve
fund
Export risk
reserve
Revaluation
reserve Total
December ,, , () ,
Total change in OCI
from revaluation of
financial assets
Profit or (loss) for the
year ,
Total comprehensive
income ,
Transfer to
reserve fund ()
December ,, , , () ,
Total change in OCI
from revaluation of
financial assets
Profit or (loss) for the
year ,
Total comprehensive
income ,
Transfer to
reserve fund ()
December ,, , , () ,
63 3 Financial Statements
Cash flow statement
Prepared in accordance with International Financial Reporting Standards as adopted by the European
Union
The notes are an integral part of the financial statements.
(MCZK) Note
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received , ,
Interest paid () ()
Net fee and commission received ()
Net trading and other net income received ()
Net income from loan collateral , ,
Cash payments to employees and suppliers () ()
(Income tax paid) / received adjustment to income tax () ()
(Other taxes paid) / received adjustment to other taxes ()
Net cash flow from operating activities before changes in operating assets
and liabilities , ,
CHANGES IN OPERATING ASSETS AND LIABILITIES
Decrease (increase) in receivables from banks () ()
Decrease (increase) in receivables from customers , (,)
Increase (decrease) in other liabilities ()
Increase (decrease) in liabilities due to banks ()
Increase (decrease) in liabilities due to customers ,
Net cash flow from operating activities , (,)
CASH FLOWS FROM INVESTMENT ACTIVITIES
Purchase of property, plant and equipment and intangible fixed assets () ()
Purchase of securities () ()
Proceeds from matured securities ,
Net cash flow from investment activities ()
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issued bonds , ,
Repayments of issued bonds (,) (,)
Proceeds from borrowings received ,
Repayments of borrowings received (,)
Lease payments () ()
Net cash flow from financing activities (,)
Eect of exchange rate changes on cash and cash equivalents ()
Net increase in cash and cash equivalents () ()
Cash and cash equivalents at the beginning of the year , ,
Changes in loss allowances for cash equivalents
Cash and cash equivalents at the end of the year , ,
64 3 Financial Statements
1 General information
Česká exportní banka, a.s. (the “Bank”) was established on 1 March 1995 and its registered address is
Vodičkova 34/701, Prague 1. The Bank does not have any branches in the Czech Republic or abroad.
The Bank is authorised to provide banking services, which predominantly comprise accepting deposits
from the public and granting loans and guarantees in Czech crowns and foreign currencies, issuing
leers of credit, clearing and payment operations, trading on its own account with financial instruments
denominated in foreign currencies, with securities issued by foreign governments, with foreign bonds and
securities issued by the Czech government and the provision of investment services.
The activities of the Bank are primarily governed by Act No. 21/1992 Coll., on Banks, as amended, Act
No. 256/2004 Coll., on Capital Market, as amended, Act No. 58/1995 Coll., on Insurance and Financing
Exports with State Subsidies (“Act No. 58/1995 Coll.”), and Act No. 90/2012 Coll., on Business Corporations
and Cooperatives (Act on Business Corporations), as amended. Concurrently, the Bank is subject to the
CNB’s regulatory requirements.
The principal objective of the Bank is to provide financing of Czech exports and investments abroad
supported by the Czech state in accordance with the European Union law and international rules – mainly
through the provision of credit facilities and guarantees. The General Meeting of the Bank makes decisions
about profit allocation and in accordance with the Articles of Association the profit is primarily used to
contribute to the statutory reserve, export risk reserve or to other funds established by the Bank.
Pursuant to Act No. 58/1995 Coll., the provision of ocially supported financing by the Bank is conditioned
by the existence of collateral, unless export credit risk is insured by Exportní garanční a pojišťovací
společnost, a.s. (“EGAP”).
Pursuant to Act No. 58/1995 Coll., the Czech state is liable for the obligations of the Bank arising from
the repayment of funds obtained by the Bank and for obligations arising from other transactions by the
Bank in the financial markets. The condition for providing ocially supported financing is the fact that at
least two thirds of the Bank’s share capital is owned by the Czech state.
Standard & Poor’s confirmed the credit rating of “AA-” with stable outlook for non-current liabilities in
foreign currency. The Bank’s issued bonds are listed on the Luxembourg Stock Exchange (Société de le
Bourse de Luxembourg).
2 Accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out
below. These policies have been consistently applied to all the years presented, unless stated otherwise.
(a) Basis of presentation
The Bank’s financial statements have been prepared as stand-alone financial statements in accordance with
International Financial Reporting Standards as adopted by the European Union (“EU IFRS”). The financial
statements have been prepared under the historical cost convention modified for financial instruments and
under the accrual and matching principle with transactions recorded in the period in which they actually
occur. Financial instruments remeasured at fair value are carried at fair value at the reporting date. The
financial statements consist of the statement of financial position, statement of comprehensive income,
statement of changes in equity, cash flow statement, and notes containing accounting policies and other
material events.
65 3 Financial Statements
Newly applied amendments to the existing standards the application of which had a significant impact
on the financial statements
None of the newly applied amendments to the existing standards had a significant impact on the financial
statements for the year ended 31 December 2024.
Newly applied amendments to the existing standards the application of which had no significant
impact on the financial statements
•
Amendments to IAS 7 and IFRS 7 – Supplier Finance Arrangements; the eective date: 1 January 2024
• Amendments to IFRS 16 – Lease Liability in a Sale and Leaseback; the eective date: 1 January 2024
•
Amendments to IAS 1 – Classification of Liabilities as Current or Non– Current; the eective date:
1 January 2024
•
Amendments to IAS 1 – Non– current Liabilities with Covenants (issued in October 2022); the eective
date: 1 January 2024
These amendments to the existing standards had no significant impact on the amounts or disclosures
in the financial statements of the Bank.
Amendments to the existing standards that are not yet eective and have been adopted by the
European Union
At the date of approval of these financial statements, the following amendments to the existing standards
were issued by IASB and adopted by the European Union, but are not yet eective:
• Amendments to IAS 21 – Lack of Exchangeability; the eective date: 1 January 2025.
Standards and interpretations that are not yet eective and have not been adopted by the European
Union
At the date of approval of these financial statements, the following standards and amendments to the
existing standards were issued by the IASB but not yet adopted by the European Union:
•
Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture; the eective date has been postponed by IASB
• Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity, eective
from 1 January 2026
• New IFRS 18 – Presentation and Disclosure in Financial Statements, eective from 1 January 2027
• New IFRS 19 – Subsidiaries without Public Accountability: Disclosures, eective from 1 January 2027
•
Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial
Instruments, eective from 1 January 2026
• Annual Improvements to IFRS Accounting Standards – Volume 11, eective from 1 January 2026.
The Bank anticipates that the adoption of the above standards and amendments to existing standards in
the period of their first-time adoption will have no significant impact on the financial statements of the Bank.
(b) Foreign currency translation
Functional and presentation currency
The financial statements of the Bank are presented in Czech crowns which is also the Bank’s functional
currency (i.e. the currency of the primary economic environment where the Bank operates).
66 3 Financial Statements
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing
at the dates of the transactions. Foreign exchange gains and losses resulting from the selement of such
transactions and from the translation of monetary assets and liabilities in foreign currencies are reported
in the income statement as ‘Net profit from financial operations including state subsidy’.
(c) Derivative financial instruments
The Bank does not trade derivatives with the aim of generating profit; however, in respect of certain
contracts contracted as hedges, the Bank does not apply the hedge accounting principles. This usually
relates to derivative instruments whose primary goal relates to currency risk hedging. The gains or
losses from these derivatives are reported in the income statement under “Net profit or (loss) on financial
operations, including state subsidy“.
(d) Interest income and expense
Interest income and interest expense for all interest-bearing financial instruments are recognised under
"Interest income" and "Interest expense" in the income statement using the eective interest method,
except for interest on derivatives hedging interest rate risks. Interest on financial instruments at fair value
through profit or loss (FVTPL) that do not function as eective hedging instruments is part of gains
and losses arising from changes in fair value reported under “Net profit or (loss) on financial operations,
including state subsidy”.
The eective interest rate method is a method of calculating the gross amortised cost of a financial asset
or financial liability and allocating the interest income or interest expense until maturity of the relevant
asset or liability. The eective interest rate is the rate that discounts estimated future cash flows over the
expected life cycle of the financial instrument, or a shorter period (if relevant), to the gross amortised cost
of the financial asset or financial liability. In determining the eective interest rate, the Bank estimates cash
flows considering all the contractual terms of the financial instrument but without reflecting credit losses.
Calculation of the eective interest rate includes all fees and payments made between or received by
parties to the contract that are an integral part of the eective interest rate, transaction costs, commitment
commissions and all other premiums or discounts.
For credit-impaired financial assets, interest income is recognised at amortised cost using the eective
interest rate adjusted for credit risk, i.e. at gross amortised cost decreased by loss allowances. Positive
interest expense determined on the basis of negative interest rates are included in “Interest income” and
negative interest income in “Interest expense”.
(e) Fee and commission income
Fees and commissions directly relating to the provision of the loan are included in the eective interest
rate. Fees and commissions, which are not part of the eective interest rate, are generally recognised on
an accruals basis when the service is provided.
The foreign exchange rates of Czech crowns to principal foreign currencies were as follows:
EUR USD
December . .
December . .
67 3 Financial Statements
Commitment commissions for providing loan commitments are also included in the eective interest rate
as the Bank assumes that all provided loan commitments will be drawn. Commitment commissions for
loans that will not be drawn are recognised as revenue on the date on which the liability is derecognised.
Advisory and service fees are reported based on the appropriate service contracts and they are recognised
in income as the Bank fulfils its liabilities.
(f) Financial assets
The Bank classifies its financial assets upon their initial recognition based on the Bank’s business model
and based on the assessment of the contractual cash flows of the financial assets.
The Bank applies a mixed business model. The objective of the main business model is to obtain contractual
cash flows, which are the principal and interest on outstanding principal. As part of the main business
model, the Bank deposits the funds provided to it from the state budget, in particular subsidies to cover
loss from the provision of ocially supported financing, funds to increase the share capital, funds to
refinance loans taken out or to repay debt securities issued, and insurance benefits received from an
export insurance company, in its bank accounts subordinated to the Treasury and held with the Czech
National Bank in under the Act on Budget Rules. The Bank also uses these accounts to deposit temporarily
available funds in those currencies for which current accounts under the Treasury can be opened and
maintained. The Bank’s supplementary business model is the holding of an asset with the purpose of
obtaining contractual cash flows from the principal and interest as well as selling the asset.
The financial asset is measured at amortised costs (AC) if it is:
a) Held as part of the main business model whose objective is to hold financial assets in order to obtain
contractual cash flows, and
b) Contractual terms and conditions of the financial asset set specific dates of cash flows composed
exclusively of payments of the principal and interest on the unpaid portion of the principal.
The financial asset is measured at fair value through other comprehensive income (FVOCI) if it is:
a) Held as part of the supplementary business model whose objective is achieved by collecting
contractual cash flows as well as by the sale of the asset, and
b) Contractual terms and conditions of the financial asset set specific dates of cash flows composed
exclusively of payments of the principal and interest on the unpaid portion of the principal.
Financial assets that do not meet the above conditions are measured at fair value through profit or loss
(FVTPL). The Bank does not arrange any financial assets held for trading. The Bank does not hold any
equity interests in assets.
The assessment of the relation to the business model is based on past experience, goals to be met, the
assessment method and management of risks and expected benefits.
The characteristics of contractual cash flows are assessed in respect of whether they are solely payments
of the principal and interest. For arrangements concerning interest, it is assessed whether they are
consistent with basic contractual arrangements, i.e., whether the interest only includes credit risk, time
value for money and other basic risks and profit margins.
Financial assets can be reclassified only if the business model is changed.
Initial recognition of financial assets
All purchases and sales of financial assets or liabilities, except for derivatives, are recognised at the
selement date. The selement date means the date of the delivery of the underlying asset related to
the financial instrument. Loans and receivables are recognised as at the date of providing the funds to
68 3 Financial Statements
the client. Upon initial recognition, financial assets are measured at fair value through profit or loss. For
financial assets not measured at FVTPL, the fair value is increased or decreased upon initial recognition
by transaction costs that are directly related to the acquisition of the financial asset.
Upon the purchase of a financial asset, there is no dierence arising between the recognised fair value of
the financial asset recognised by the Bank and the fair value using valuation methods.
Valuation of financial assets as of the balance sheet date
Financial assets at amortised cost (AC) predominantly include provided loans and other receivables and
part of purchased bonds. The amortised cost consists of the acquisition cost less principal payments,
including any discount/premium, less an allowance for expected credit losses and accrued interest
calculated using the eective interest rate. Impairment in the form of expected credit losses is presented
in the income statement.
Bonds at fair value through other comprehensive income (FVOCI) are remeasured at fair value after initial
recognition. These are bonds held to generate cash flows and for sale, where the cash flows consist of
principal and interest payments. Gains and losses arising from changes in fair values are reported directly
through equity until the financial asset is derecognised. Impairment is recognised in equity through profit
or loss. However, the interest calculated using the eective interest rate method is reported in the income
statement under “Interest income”.
In determining the fair value of quoted investments at level 1 as at the balance sheet date, the Bank uses
the current quoted oer prices. If the market is not active for a specific financial asset, the Bank determines
the fair value using valuation techniques (level 2). The Bank uses quoted supply and demand market rates
as input values for the measurement of the fair values of financial assets or liabilities.
As of the balance sheet date, management of the Bank assessed the used valuation techniques to ensure
that they suciently reflect the current market conditions including the relative liquidity of the market
and credit spreads.
Derecognition of financial assets
Financial assets are derecognised when rights for the collection of cash flows cease to exist or when the
Bank transfers all risks and benefits arising from their ownership. The dierence between the carrying
amount of the financial asset (or its part) that ceased to exist or was transferred to another party, and the
payment made is recognised in profit or loss.
(g) Impairment of financial assets
The Bank creates allowances and provisions for expected credit losses in respect of financial assets at
amortised cost, bonds at fair value through other comprehensive income, provided financial guarantees,
provided loan commitments and receivables arising from contractual assets.
As of the date of initial recognition the Bank assesses whether the credit risk has increased, i.e., the risk
that the Bank will incur a loss caused by a failure of the counterparty to meet its obligations. If the credit
risk has not increased (stage 1), the Bank calculates allowances and provisions in the amount of twelve-
month expected credit losses (ECL) for each reporting date. Twelve-month ECL are a part of lifetime
credit losses that correspond to expected credit losses arising from a failure of the financial instrument
that may occur within 12 months from the date of recognition.
If a material increase in credit risk occurs (stage 2) from the initial recognition, the Bank recognises an
allowance or provision in the amount of lifetime expected credit losses. Lifetime expected credit losses
involve estimated credit losses arising from any failure to meet commitments during the estimated lifetime
of financial assets.
69 3 Financial Statements
Financial assets are impaired (stage 3) if one or more events occurs having an adverse impact on the
expected future cash flows related to the financial assets. For purchased or originated credit-impaired
(POCI) assets, loss allowances are reported only as the accumulated change in expected credit losses
for the period since the initial recognition.
Loss allowances decrease the value of the financial asset at amortised cost (AC) in the balance sheet. Loss
allowances for financial assets at fair value through other comprehensive income (FVOCI) are recognised
against other comprehensive income. Provisions for credit losses on loan commitments and provided
guarantees are reported in the balance sheet under “Provisions”.
The calculation of expected credit loss (ECL) is based on the undistorted and probability-weighted amount
that is the result of various scenarios, includes the time value of money and is based on adequate and
demonstrable information that is available without incurring disproportionate costs. Credit losses are
defined as a dierence between all contractual cash flows payable to an entity under the relevant contract
and all cash flows that are expected to be collected by the entity (i.e., all cash deficits), discounted by
the original eective interest rate (or by the eective interest rate adjusted for credit risk in respect of
purchased or originated credit- impaired financial assets).
The policies and assumptions used for the quantification of expected credit loss are described in Note 3b).
Write-os
Write-o is made upon realisation of collateral or if the Bank no longer has adequate expectations that
the value of the financial asset as a whole or its part will be recovered.
Such situations may include:
•
liquidation of the debtor without a legal successor (deletion of a legal entity from the Commercial
Register, termination of inheritance proceedings after the death of an individual without heirs, and
failure to satisfy the claim from the inheritance), and there is no collateral for the receivable that is
recoverable from third parties
• a final court decision on the non-existence of the receivable
• termination of the receivable by other legal means; including the replacement of the original debt by
the debt specified in the restructuring plan and the subsequent fulfilment of the restructuring plan by
the debtor
• the final termination of insolvency or similar proceedings against the debtor or the final dismissal of
the insolvency petition for lack of assets of the debtor and there is no third-party collateral or rights
and assets for the receivable that could be realized
• assignment of the receivable
•
the uncollectibility or financial ineciency of any further recovery; i.e., it is clear from the circumstances
of the case that any further recovery of the risk receivable or part thereof would not be successful (e.g.,
if enforcement proceedings have been unsuccessful in recovering the receivable or part thereof, or if
the debtor has successfully pleaded the limitations statute), or if the cost of recovery would exceed
the expected return in relation to the amount of the receivable.
If the receivable has not been extinguished and the receivable, although uncollectible, continues to exist
legally and all recovery actions have not yet been completed, it is wrien o in the o-balance sheet and
continues to be accounted for in the o-balance sheet records.
(h) Reverse sale-and-repurchase agreements
Financial assets purchased under reverse sale-and-repurchase agreements (reverse repo transactions)
are considered to be loans granted to other banks or customers. They are classified in accordance with
the Bank's business model and the characteristics of the negotiated cash flows as AC or, FVOCI.
70 3 Financial Statements
The dierence between the purchase and resale prices is treated as interest and accrued over the term
of the agreement using the eective interest rate method.
(i) Property, plant and equipment and intangible assets
All property, plant and equipment and intangible assets are stated at historical cost less accumulated
depreciation and amortisation or loss allowances. Historical cost includes expenditures that are directly
aributable to the acquisition of the assets.
Acquired software licences are capitalised on the basis of the costs incurred to acquire and bring to use
the specific software. Depreciation and amortisation of property, plant and equipment and intangible
assets is calculated using the straight-line method over their estimated useful lives, as follows:
Technical improvements are included in the asset’s carrying amount, only when it is probable that future
economic benefits associated with the item will flow to the Bank and the cost of the item can be measured
reliably. Repair and maintenance costs are charged to the income statement when incurred.
Property, plant and equipment and tangible assets under construction are not depreciated until relevant
assets are completed and put into use.
The net book value of assets and useful lives is monitored and adjusted as appropriate at each balance
sheet date.
If the asset’s carrying amount is greater than its estimated recoverable amount, a loss allowance is created
for the asset. The estimated recoverable amount is the higher of the asset’s fair value including the costs
of sale and the value in use.
(j) Leases
The Bank is involved in lease arrangements only as a lessee. In accordance with the standard, the Bank
decided not to apply the right-of-use asset and lease liability for short-term and low-value leases. In such
a case, lease payments are recognised on a straight-line basis over the lease term in the income statement.
The identified fixed or material right-of-use asset is measured at cost in the value of the initial recognition
of the lease liability, payments made until the inception of the lease, direct costs and estimated costs of
cancellation of the lease. The right-of-use asset is expensed over the estimated lease term. The lease
liability is measured at the inception of the lease at the present value of the future payments, using the
interest rate implicit in the lease, or the incremental borrowing rate of the lessee.
(k) Cash and cash equivalents
Cash is defined as cash and receivables from credit institutions repayable on demand, including balances
on the minimum mandatory reserves account. The Bank considers cash equivalents to be short-term and
highly liquid receivables from credit institutions with original maturities of 3 months or less that are readily
convertible into known amounts of cash and for which the risk of changes in value is not significant.
Years
Motor vehicles
Furniture and fixtures –
Oce and IT technology –
Other oce equipment –
Software –
71 3 Financial Statements
(l) Employee benefits
The Bank recognises a provision for deferred bonuses and other long-term employment benefits, i.e.,
retirement bonuses. This provision is created by the sum of liabilities under these benefits at the balance
sheet date. The plan of other long-term benefits does not have any proceeds from assets. The present
value of the provision is calculated on the basis of the incremental approach which takes into account
estimated employee fluctuation.
(m) Taxation and deferred income tax
Deferred income tax is recognised using the full balance sheet liability method. It is determined based on
temporary dierences between the tax and net book value of assets and liabilities.
Deferred income tax is determined using the tax rates that have been enacted at the balance sheet date
and relate to the period in which the realisation of the deferred tax asset or selement of the deferred tax
liability are expected.
Deferred tax related to the revaluation of items which are charged directly to equity is also charged directly
to equity and subsequently recognised in the income statement together with the deferred gain or loss.
Deferred tax assets are recognised where it is probable that future taxable profit will be available against
which the temporary dierences can be utilised.
Income tax payable is recognised, pursuant to applicable tax regulations in the Czech Republic, as an
expense in the period in which taxable profits are generated.
(n) Financial liabilities
Initial recognition of financial liabilities
Upon initial recognition, financial liabilities are measured at fair value. For financial liabilities not measured
at FVTPL, the fair value upon initial recognition is increased or decreased by the transaction costs directly
related to the acquisition of the financial liabilities.
The fair value of a financial liability as at the acquisition date is generally its transaction price.
Valuation of financial liabilities as of the balance sheet date
The category of financial liabilities at amortised cost (AC) includes liabilities to banks, to customers, issues
of own bonds and other financial liabilities. a derivative embedded in a contract on a financial liability is
separated and recognised separately if the economic features of the embedded derivative and the related
risks are not closely related to the economic features of the host contract, a separate instrument with the
same conditions as the embedded derivative would satisfy the definition of a derivative and the hybrid
contract is not measured at fair value through profit or loss.
Derecognition of financial liabilities
Financial liabilities are derecognised as soon as they cease to exist, i.e., when the liability is cancelled,
seled, or ceases to be eective. The dierence between the carrying amount of the financial liability that
ceased to exist or was transferred to another party and the payment made is recognised in profit or loss.
72 3 Financial Statements
(o) Share capital
Ordinary shares are classified as equity in the amount recorded in the Commercial Register. Other costs
directly aributable to the issue of new shares are shown as a deduction of retained earnings, net of tax.
(p) Segment reporting
Operating segments are reported in accordance with the internal reports regularly prepared and presented
to the Bank’s Board of Directors consisting of a group of managers authorised to make decisions on funds
to be allocated to individual segments and to assess their performance.
The Bank records two operating segments which are derived from the special purpose for which the Bank
was established by the state, i.e., the operation of ocially supported financing in accordance with Section
6 (1) of Act No. 58/1995 Coll., through independent accounting sets (circles):
• Separate set (circle) 001 – set of financing without ties to the state budget, operating activities, and
other relating activities in accordance with the banking licence, and
• Separate set (circle) 002 – set of ocially supported financing eligible for subsidy.
(q) State subsidy
In accordance with Act No. 58/1995 Coll., the Bank receives subsidies from the state budget to cover
losses resulting from the operations related to supported financing.
The subsidy is provided for the loss arising from the balance of legally defined expense and income item
for certain business cases arising from the provision of supported financing.
The income from the state subsidy is recognised in the income statement in the period in which the loss
occurs. The title to the state subsidy is recognised in other receivables when the subsidy is virtually certain.
(r) Provisions
Provisions are recognised when the Bank has a present legal or constructive obligation resulting from past
events, it is likely that an outflow of resources will be required to sele the obligation, and the amount has
been reliably estimated. In addition, the Bank creates provisions for expected credit losses from issued
financial guarantees and provided loan commitments in accordance with IFRS 9.
(s) Guarantees and loan commitments
The Bank also acts as an issuer of guarantees. Bank guarantee contracts are contractual relationships
stipulating that the issuer will provide a payment to the beneficiary, subject to events disclosed in the
leer of guarantee. Such guarantees are granted by the Bank based on the requirement of the exporter.
Bank guarantees are initially recognised in the financial statements at fair value on the date the guarantee
was given. Subsequently, the Bank’s liabilities under such guarantees are measured at the higher of (i)
expected credit losses, or (ii) remaining unaccrued amounts upon initial recognition. Loss allowances are
recognised against receivables from outstanding fees.
The Bank also enters into contingent financial relationships by granting loan commitments. Loan
commitments are entered in the accounting records at the time of signing the contract. Loan commitments
are initially measured at fair value which is usually the present value of fees for the provision of the
commitment. Assuming that the provision of the loan commitment is probable, these fees are accrued
using the eective interest rate and recognised in income over the term of the liability. Subsequently, loan
73 3 Financial Statements
commitments are measured at the higher of expected credit losses, or the remaining unaccrued amounts
reported upon first recognition. Loss allowances are recognized against receivables from outstanding fees.
Provisions representing expected credit losses are created for guarantees and loan commitments in
accordance with the requirements of IFRS 9.
(t) Collateral and guarantees received
The Bank also receives guarantees issued by other banks and other collateral from other customers as
a means of security. An important component of contingent assets is the insurance of export credit risks
arranged by or in favour of the Bank. The collateral is taken into account in assessing the risks of loans.
Accepted guarantees and insurance are an integral part of the loan. The Bank considers them in the
calculation of expected credit losses.
3 Risk management
(a) Strategy for using financial instruments
The Bank provides export financing products, especially credit products and trade finance products
in accordance with Act No. 58/1995 Coll., on Insurance and Financing Exports with State Subsidies, as
amended, and related regulations.
The Bank funds export loans through the use of debt securities issues in EMTN and ECP programmes
and long-term bank borrowings; short-term borrowings from the interbank market and customer deposits
are used as additional sources of funding. The Bank also uses customer deposits as loan security.
Under amendment to Act No. 58/1995 Coll. Eective from April 2020, the Bank does not invest funds in
securities on the financial market unless such investment is necessary to ensure compliance with regulatory
risk management rules. The Bank deposits temporarily available funds in its bank accounts subordinated
to the Treasury and maintained with the Czech National Bank under the Act on Budget Rules. It uses
interbank market transactions for currencies in which accounts under the Treasury cannot be maintained,
for the purpose of short-term liquidity management or as a standard tool to hedge instruments or positions
against interest rate and currency risk.
The Bank’s strategy does not involve generating profit through trading in financial instruments to take
advantage of fluctuations in interest and exchange rates. For this reason, the Bank did not establish any
trading portfolio.
The Bank only trades on its own account with approved investment instruments in accordance with the
Bank’s List of permied products.
The Bank shall enter into financial market transactions only with eligible counterparties that do not require
to be treated as professional customers. The Bank neither provides investment services to its customers,
including custody and administration services for investment instruments, nor oers the possibility of
investing in investment vehicles.
The Board places trading limits on the level of exposure that can be taken in relation to all daily market
positions. With the exception of specific hedging arrangements, foreign exchange and interest rate
exposures are normally oset by entering into reverse positions, thereby controlling the variability in the
net cash amounts required to liquidate market positions. The Bank uses selected derivatives for the fair
value hedging to minimise the impact of changes in fair value on the income statement.
74 3 Financial Statements
The Bank hedges part of its existing interest rate risk resulting from any potential decrease in the fair
value of assets or increase in the fair value of liabilities denominated both in CZK and foreign currencies
using interest rate swaps, FX derivatives and cross currency interest rate swaps.
In 2024 and 2023, the Bank did not make any reclassification of securities.
(b) Credit risk
The Bank is exposed to credit risk, which is the risk that a counterparty will be unable to repay amounts in
full when they fall due. The exposure results from individual products of the Bank provided under supported
export financing and from the Bank’s operations on money and capital markets.
The Bank has established a system of approval authorities, depending on the amount of the total limit
for the customer or economically connected group of debtors. In the organisational structure, credit risk
management and control are part of the Risk Management Division for which the relevant Board member
is responsible.
Credit risk measurement
The Bank assesses the probability of default of individual counterparties on an individual basis with the use
of rating models. The Bank has developed rating models for assessing the risk level of corporate customers
and risks of banks. The rating models are subject to validation and are updated as and when necessary.
Overview of internal rating grades
Rating
value
Level of
risk Description Conversion to the rating
of Standard & Poor’s
Very low
Entities with this rating have a very high credit quality. The financial situation
is very stable and other economic factors are highly favourable.
The ability to meet its obligations on time is very high.
from AAA to AA
Low
Entities with this rating have a high credit quality. The financial situation is
stable and other economic factors are favourable. The ability to meet its
obligations on time is high.
from A to A
Lower
Entities with this rating have a very good credit quality. The financial situati-
on is above average and other economic factors are very satisfactory.
The ability to meet its obligations on time is very good.
from BBB to BBB
Medium
Entities with this rating have a good credit quality. The financial situation is
acceptable and other economic factors are satisfactory. The ability to meet
its obligations on time is good.
from BB to BB
Higher
Entities with this rating have a lower credit quality. The financial situation is
slightly deteriorated, and other economic factors are slightly below average.
The ability to meet its obligations on time is lower.
from B to B
High
Entities with this rating have a lower credit quality. The financial situation is
deteriorated, and other economic factors are below average. The ability to
meet its obligations on time is lower.
from CCC to CCC
Very high
Entities with this rating have a low credit quality. The financial situation is
unstable and other economic factors are highly below average. The ability to
meet its obligations on time is uncertain.
from CC to C
DDefault
Entities with this rating have a very low credit quality. The financial situation
is highly unstable and other economic factors are unfavourable. The ability to
meet its obligations on time is unlikely or
impossible.
default
The Bank’s financial assets are classified into 3 risk stages (Stage I – III) and the special POCI category.
• Stage I includes financial assets for initial recognition (excluding POCI) and financial assets for which
the credit risk has not significantly increased from initial recognition to the reporting date.
•
Stage II includes financial assets for which credit risk has increased significantly from initial recognition
75 3 Financial Statements
to the reporting date but which are not credit-impaired until the reporting date.
• Stage III includes financial assets that are credit-impaired at the reporting date (default).
•
Financial assets classified as POCI include financial assets that are impaired at the date of initial
recognition.
Significant increase in credit risk
At each reporting date, the Bank has to assess whether or not the credit risk related to the financial asset
has significantly increased since initial recognition.
The assessment of whether there has been a significant increase in credit risk since initial recognition
is based on all reasonable and demonstrable information available to the Bank without unreasonable
expenses or eort. These include historical information, information on future prospects and credit risk
assessment over the estimated useful life of the financial asset, including information on the circumstances
that led to the potential modification. The assessment whether there has been a significant increase in
credit risk since initial recognition is based on a significant increase in the probability of default since initial
recognition rather than on the events that have occurred. In assessing the credit risk, the Bank takes into
account the current projections of the customer’s economic situation and available information on the
anticipated market developments and the economy of the whole country. For receivables in the portfolio
of assets on the money and capital markets, the Bank anticipates that the credit risk is low due to the high
rating of counterparties. This is ensured by a policy applied at the decision-making level when approving
credit limits, which are re-assessed every 12 months.
The portfolio of receivables from loans, loan commitments, issued guarantees and trade receivables, which
arise solely from the Bank’s customers, the Bank regularly monitors and assessed the following red flags:
•
The debtor has not complied with its contractual obligations towards the Bank for more than six months
(e.g., establishing a subsequent security, financial and non-financial covenants)
•
The beneficiary of the guarantee issued by the Bank sent the Bank a request for extending a guarantee
(extend or pay)
• A modification of the financial asset has been performed; the impact of the decrease in the present
value of future cash flows after and before modification calculated using the original eective interest
rate is less than 5%
• Insolvency or similar bankruptcy proceedings in line with foreign legal regulations have been initiated
against the debtor because of an insignificant receivable, which may lead to the declaration of bankruptcy
and a petition for the commencement of such proceedings has not been dismissed or rejected or the
proceedings have not been suspended within 30 days from commencement
• Legal disputes concerning material amounts (higher than 10% of the net book value of the debtor’s
assets)
• Actual or anticipated changes that may considerably modify the debtor’s ability to pay its liabilities,
such as
— the eect of significant changes in macroeconomic variables (e.g., GDP development, inflation,
significant change in the exchange rate, adverse development of the prices of key commodities,
decreasing the country’s rating by 2 notches or more)
— or other significant negative information related to the business case or the debtor (e.g., adverse
changes in market, financial, economic and technology conditions).
A significant increase in credit risk (SICR) is acknowledged no later than when:
• A receivable is past due by more than 30 days
• The debtor’s internal rating when compared to the initial recognition has deteriorated as follows:
Rating upon initial recognition Deterioration
– by notches
– by notches
by notch
76 3 Financial Statements
• Payments are made by the guarantor if it was not known when the business case was approved that
payments would be sent by the guarantor rather than the debtor
•
The principal in a guarantee issued by the Bank does not meet the conditions of the guarantee or
the contract, with the Bank anticipating the beneficiary’s request to extend the guarantee (“extend or
pay”), and
•
A statement of another creditor or the investigative, prosecuting, and adjudicating bodies indicates that
criminal proceedings have commenced against the debtor or members of the statutory body because
of a property crime commied in relation to their business activity.
Debtor’s default
The event of default has been defined in the Bank based on historical experience for various types of
financial instruments.
Debtor’s default refers to a situation when at least one of the following conditions has been met:
• A receivable or its major portion is past its due date for more than 90 days
•
With respect to the debtor, an insolvency petition was dismissed, or the insolvency or similar proceedings
were discontinued due to insucient debtor’s property
• The debtor intends to enter into, or has entered into, liquidation
•
Bankruptcy of the debtor has been identified or declared, or the bankruptcy or similar proceedings have
commenced under foreign legislation, resulting in a loss or restriction of the debtor’s disposition rights
• The court has issued a decision on the invalidity or non-existence of the debtor (legal person), or the
debtor (an individual) has passed away
•
Enforcement of a judgement concerning the sale of the debtor’s assets or distraint, including judicial lien,
has been ordered based on a final and conclusive judgement of the court or an administrative authority
• The Bank had to make payments for the debtor under provided guarantees, and
—
The debtor has not paid such receivable within 90 days from the deadline specified by the
accompanying loan agreement concluded for performance under a guarantee (or within 90 days
from the deadline for performance defined by the Bank if the accompanying agreement is not
concluded, or the deadline is not defined therein) and, simultaneously, the Bank has not agreed
on a payment schedule with the debtor in order to sele the Bank’s receivable arising in relation
to payments made for the debtor under provided guarantees, or
— probability that the debtor cannot sele such receivable without the use of security is more than
50%.
• The Bank expects the receivable to be repaid, at least partially, from collateral liquidation
•
An exposure under probation where additional forbearance measures are granted or where the exposure
becomes more than 30 days past due.
Recognition of loss allowances and provisions
Recognition of allowances and provisions is based on the expected credit loss (ECL), which is expressed as
the weighted average of credit losses.
For Stage I assets, the 12-month ECL is used to quantify the allowances and provisions representing the
expected credit losses incurred due to a financial instrument default that may occur within twelve months
from the reporting date. The modelling and subsequent calculation of loan loss allowances does not result in
the segmentation of the loan portfolio.
The Bank uses the portfolio approach to determine the ECL in segments of receivables from loans, o-balance
sheet products and trade receivables in Stage 1. The collectively determined probability of loss determined
based on an analysis of prior periods is applied to exposure at default (EAD), where EAD is the gross carrying
amount of the exposure net of all accepted collateral. The Bank uses only recoverable collateral in the
calculation selected on the basis of historical experience and with respect to the exposure to the foreign legal
environment. The resulting recognition of allowances and provisions is allocated to individual financial assets.
77 3 Financial Statements
In the segment of receivables of the money and capital markets bearing low credit risk, the Bank uses an
individual approach to quantify ECL. The ECL quantification is based on the probability of loss applied to
exposure at default (EAD), i.e., the unsecured portion of the receivable.
For portfolio-significant exposures, the Bank includes forward-looking information (FLI) in the form of
a coecient for the expected macroeconomic outlook of the debtor’s country in the calculation of expected
credit losses (ECL). This coecient is calculated individually for Czech Republic, Turkey, Indonesia, and
France, where the Bank has significant exposure. The calculation included expertly selected macroeconomic
variables – GDP growth, government debt, oil price, exchange rate and inflation.
For Stage 2, Stage 3 and POCI assets, the calculation of allowances and provisions uses the lifetime ECL, which
are the expected credit losses that arise from all possible failures to meet commitments over the expected
life of the financial instrument. The Bank uses an individual approach and the method of probability-weighted
estimated cash flow scenarios, which also consider FLI. Estimated cash flows are determined by evaluators
using the estimated cash flow scenarios.
At the same time, the following applies:
• It is always required to use at least two scenarios with a non-zero weight, with the sum of individual
weights being 100%
• The only exception is when the receivable is insured by a loan insurance company and the insurance
company issued a statement as regards insurance payments – in such a case, only one scenario will
be used, i.e., cash flows will be based on the payments of premium and reductions (if any) – based on
a declaration of the loan insurance company
•
For Stage 2 receivables, scenarios reflecting the possibility of default must be used (and thus the
possibility of insurance payments by a loan insurance company if applicable) based on boundary
values of the probability of default as per rating
•
For Stage 3 receivables and if the insurance payment receivable is expected to be paid with a probability of
> 50%, a scenario reflecting the possibility of reduction of insurance payments by the insurance company
may be used until the insurance company’s statement on insurance payments is received.
No financial asset of the Bank was arranged or originated as credit impaired (POCI).
New types of credit risks
In 2024, the Bank continued to monitor and assess the impact of the changing economic and geopolitical
situation and the eects of external influences, in particular the continuing conflict in Ukraine, high energy
prices in the Czech Republic, developments in the Middle East, the impact of the US presidential election,
economic developments in Europe, especially in Germany and China, and the growing impact of climate risks.
As for the ongoing Russia-Ukraine conflict, essentially the only significant exposure left in Russia was returned
to performing exposures in 2023 after repayments were collected and the Bank did not record any financial
loss. However, in the first half of 2024, the borrower in question had a major accident at a production facility, as
a result of which, and not related to the conflict, the borrower ceased to be able to pay its obligations and the
exposure was reclassified to Stage 3. The performance of exposures of entities in Ukraine has been gradually
renewed again, however, the Bank’s claims were satisfied from the collected insurance claims from EGAP.
As regards the situation in the Middle East, the exposure to the entity in Israel was duly seled; on the other
hand, the change in the situation in an African country led to a reclassification of the exposure to Stage 2.
Despite these increased sources of risk, the Bank did not identify any other direct significant deterioration in
the credit risk of a specific borrower; however, the Bank reflected their potential impact in the calculation of
the total amount of loss allowances through the risk coecient (overlay) for these new sources of credit risk.
78 3 Financial Statements
ESG
The Bank's strategic position on ESG will be based on a dialogue with the Bank's key stakeholders. In 2024,
the Bank began implementing steps to assess the dual materiality, i.e., to assess the impact of ESG factors on
the Bank's business model and client portfolio and the impact of its operations on the environment. Based on
this, specific ESG risks and opportunities will be identified. For the assessment of ESG risks, data collection
mechanisms will be set up, both relating to the Bank's activities and particularly to its loan portfolio, considering
its size, the sectors it finances, and the products these provide. In practice, this means finding an appropriate
combination of using publicly available information, registers or databases and data collected systemically or
ad hoc from clients. The currently used qualitative framework assessment of ESG impacts on clients' business
continuity will be gradually revised into a more structured form. The objective is to have a system in place to
assess clients, their environmental, social and governance practices, and the financial stability and long-term
sustainability of their business activities, which ultimately aect the Bank's credit exposure and risk profile,
in time to meet regulatory obligations.
Exposures by level of credit risk
(MCZK)
Carrying
amount
(net)
Carrying amount (gross) Loss allowances
Stage
Stage
Stage
Stage
Stage
Stage
Debt securities at fair value recognised in other
comprehensive income
Government institutions
Credit institutions
Financial assets at amortised cost , , , , () () ()
Debt securities at amortised cost ()
Government institutions ()
Credit institutions
Loans and receivables at amortised cost , , , , () () ()
Central banks , , ()
Government institutions , , () ()
Credit institutions , , ()
Non-financial corporations , , , , () () ()
Other receivables ()
(MCZK)
Carrying
amount
(net)
Carrying amount (gross) Loss allowances
Stage
Stage
Stage
Stage
Stage
Stage
Debt securities at fair value recognised in other
comprehensive income
Government institutions
Financial assets at amortised cost , , , () () ()
Debt securities at amortised cost ()
Government institutions ()
Credit institutions
Loans and receivables at amortised cost , , , () () ()
Central banks , , ()
Government institutions , , ()
Credit institutions , , ()
Non-financial corporations , , , () () ()
Other receivables ()
continued on next pge
79 3 Financial Statements
(MCZK)
Carrying amount (gross) Provisions
Stage
Stage
Stage
Stage
Stage
Stage
Total provided loan commitments , () ()
Government institutions ()
Non-financial corporations , ()
Total provided financial guarantees and leers
of credit
, () () ()
Credit institutions ()
Non-financial corporations , () () ()
O-balance sheet positions total , () () ()
(MCZK)
Carrying amount (gross) Provisions
Stage
Stage
Stage
Stage
Stage
Stage
Total provided loan commitments , () ()
Non-financial corporations , () ()
Provided financial guarantees total , () () ()
Non-financial corporations , () () ()
Total o-balance sheet positions , () () ()
Development of balance sheet exposures by level of credit risk
Movements between stages of loans and receivables at gross amortised cost
Loss allowances for loans and receivables at amortised cost
(MCZK) Stage Stage Stage Total
December , , ,
Transfer from Stage ()
Transfer from Stage (,) ,
Transfer from Stage
Changes in ongoing transactions (repayments)/drawing and
accrued interest () (,) () (,)
Origination of new assets , ,
Fully repaid transactions (,) () (,)
Write-os () ()
Exchange rate gains or losses
December , , , ,
(MCZK) Stage Stage Stage Total
December () () () ()
Transfer from Stage ()
Transfer from Stage ()
Transfer from Stage
Changes in allowances () () ()
Creation of allowances for new assets () ()
Release of allowances for derecognised assets
Foreign exchange dierences () () () ()
Write-os
December () () () ()
80 3 Financial Statements
In 2024, two receivables were reclassified from Stage 1 to Stage 2 due to an increase in geopolitical risk.
The movement in the "Changes in allowances" line item in Stage 2 of CZK 29 million comprises the creation
of allowances to these transactions of CZK 9 million and the release of allowances for successfully repaid
exposures of CZK 38 million. Allowances of CZK 68 million were released for fully repaid receivables in Stage 2.
One receivable of CZK 1,416 million was transferred from Stage 2 to Stage 3 due to a serious accident of
a production equipment. It was necessary to increase the allowance from CZK 35 million to CZK 110 million.
In Stage 3, certain older impaired loans were also derecognised and their allowances of CZK 38 million were
released.
The item “Origination of new assets” in Stage 1 primarily includes short-term exposures at central banks of
CZK 9,254 million. The rest are deposits with other banks of CZK 1,681 million, and newly granted loans of
CZK 1,638 million.
Movements between stages of loans and receivables at gross amortised cost
Loss allowances for loans and receivables at amortised cost
(MCZK) Stage Stage Stage Total
December , , ,
Transfer from Stage ()
Transfer from Stage ()
Transfer from Stage
Changes in ongoing transactions (repayments)/drawing and
accrued interest () ,
Origination of new assets , ,
Fully repaid transactions (,) () () (,)
Write-os () ()
Foreign exchange dierences
December , , ,
(MCZK) Stage Stage Stage Total
December () () () ()
Transfer from Stage ()
Transfer from Stage ()
Transfer from Stage
Changes in allowances () () ()
Creation of allowances for new assets () ()
Release of allowances for derecognized assets
Foreign exchange dierences () () () ()
December () () () ()
In 2023, reclassification from Stage 1 to Stage 2 was made for three receivables, but primarily for one new
transaction of CZK 671 million for which deterioration of financial situation was observed. Allowances of
CZK 57 million were subsequently created in Stage 2 for this transaction. Two receivables were reclassified
from Stage 2 to Stage 3 due to payment complications with Russian debtors. Both exposures were paid
in 2023. Stage 3 also saw a reduction in some older impaired loans that were recorded on the balance
sheet in the amount of expected insurance payments.
The item “Origination of new assets” in Stage 1 primarily includes short-term exposures at the Czech
National Bank of CZK 7,837 million. The rest are deposits with other banks of CZK 3,026 million, and newly
granted loans of CZK 2,511 million.
81 3 Financial Statements
In 2024, the undrawn balance of the loan commitment of CZK 88 million was transferred from Stage 1 to
Stage 2 for one business case with no significant impact on the created provision. Also, several issued
guarantees worth CZK 327 million were transferred from Stage 2 to Stage 1. This led to the release of
a provision of CZK 2 million.
The most significant item increasing long-term o-balance sheet exposures in Stage 1 was an increase
in the loan commitment of CZK 1 378 million, while long-term guarantees decreased by CZK 116 million.
New loan commitments of CZK 3,151 million were originated. Commitments of CZK 1,928 million were
terminated by drawdown and commitments of CZK 500 million were terminated by derecognition. The
remaining changes relate to expiry of provided guarantees.
Movements between stages of o-balance sheet exposures
Provisions
Development of o-balance sheet exposures by level of credit risk
Movements between stages of o-balance sheet exposures
(MCZK) Stage Stage Stage Total
At December , ,
Transfer from Stage ()
Transfer from Stage ()
Changes in ongoing transactions (drawing or derecognition) /
increase , () ,
Origination of new o-balance sheet exposures , ,
Termination (drawing or derecognition) (,) () (,)
Foreign exchange dierences
At December , ,
(MCZK) Stage Stage Stage Total
At December () () () ()
Transfer from Stage
Transfer from Stage ()
Changes in provisions () () ()
(Creation of provisions for new exposures) () ()
Release of provisions for derecognised exposures
Foreign exchange dierences () () () ()
At December () () () ()
(MCZK) Stage Stage Stage Total
At December , , ,
Transfer from Stage ()
Changes in ongoing transactions (drawing or derecognition) /
increase () () ()
Origination of new o-balance sheet exposures , ,
Termination (drawing or derecognition) (,) (,) (,)
Foreign exchange dierences () ()
At December , ,
82 3 Financial Statements
In 2023, the highest items in newly created o-balance sheet exposures in Stage 1 comprised the
transactions of four loan commitments of CZK 2,542 million and two financial guarantees of CZK 711 million.
One transaction of a drawdown of CZK 1,447 million stands out among terminated positions in Stage 1.
In Stage 2, we can see the drawdown of loan commitments for a significant long-term transaction where
there is an ongoing drawdown and repayment of the loan.
Provisions
(MCZK) Stage Stage Stage Total
At December () () () ()
Transfer from Stage
Changes in provisions
(Creation of provisions for new exposures) () ()
Release of provisions for derecognized exposures
Foreign exchange dierences
At December () () () ()
Classification by internal rating
(MCZK)
Carrying
amount
(net)
Carrying amount
(gross)
Loss allowances
and provisions
Internal
rating
grade
Stage Stage Stage Stage Stage Stage
Highest credit quality ()
Debt securities at amortised cost ()
Highest credit quality , , ()
High credit quality , , ()
Very good credit quality , , ()
Good credit quality , , () ()
Quality requiring prudence , , () ()
Default of project D, , ()
Loans and receivables
at amortised cost , , , , () () ()
Financial assets
at amortised cost , , , , () () ()
Highest credit quality
Debt securities at fair value
recognised in other
comprehensive income
High credit quality , ()
Good credit quality , ()
Quality requiring prudence , () ()
Provided loan commitments , () ()
High credit quality ()
Very good credit quality ()
Good credit quality
Quality requiring prudence ()
Vulnerable ()
Default of project D ()
Provided financial guarantees and
leers of credit , () () ()
83 3 Financial Statements
(MCZK)
Carrying
amount
(net)
Carrying amount
(gross)
Loss allowances
and provisions
Internal
rating
grade
Stage Stage Stage Stage Stage Stage
Highest credit quality ()
Debt securities at amortised cost ()
Highest credit quality , , ()
High credit quality , , ()
Very good credit quality , , ()
Good credit quality , , ()
Quality requiring prudence , , , () ()
Unsatisfactory , , ()
Default of project D ()
Loans and receivables
at amortised cost , , , () () ()
Financial assets
at amortised cost , , , () () ()
Highest credit quality
Debt securities at fair value
recognised in other
comprehensive income
High credit quality ()
Very good credit quality , ()
Good credit quality ()
Quality requiring prudence () ()
Provided loan commitments , () ()
High credit quality ()
Very good credit quality ()
Good credit quality ()
Quality requiring prudence ()
Default of project D ()
Provided financial guarantees , () () ()
Performing and non-performing exposures
A non-performing exposure is an exposure that meets at least one of the criteria below:
a) It is overdue by more than 90 days
b) The debtor has been assessed by the Bank as a client that will probably be unable to repay all its
liabilities without using collateral; whereby the existence of an exposure past its due date or the
number of days past the due date are not taken into account, and
c) The exposure is in probation period for which other forbearance is provided or which is more than
30 days overdue.
Such an exposure is always classified by the Bank as Stage 3 or POCI.
84 3 Financial Statements
Performing and non-performing balance sheet exposures not due and overdue
(MCZK)
Carrying amount (net)
Total Performing
exposures Non-performing exposures
Days-past-due interval
days
days
days
days
days
days
days
year
year
years
years
Debt securities at amortised cost
Loans and receivables at amortised cost , ,
Financial assets at amortised cost , ,
Debt securities at fair value recognised in
other comprehensive income
Performing and non-performing exposures
in total , ,
(MCZK)
Carrying amount (net)
Total Performing
exposures Non-performing exposures
Days-past-due interval
days
days
days
days
days
days
days
year
year
years
years
Debt securities at amortised cost
Loans and receivables at amortised cost , , ,
Financial assets at amortised cost , , ,
Debt securities at fair value recognised in
other comprehensive income
Performing and non-performing exposures
in total , , ,
Performing and non-performing exposures with forbearance
Exposures with forbearance refer to exposures for which the debtor is facing or is likely to face diculties
in meeting its financial obligation and, as a consequence, the Bank has changed the conditions of the loan
contract. These new conditions are more favourable towards the debtor or are more favourable than those
oered to debtors with a similar risk profile at that time. The assessment of exposures with forbearance
focuses on whether the exposure has been classified as performing before granting the forbearance or
whether it would be classified as non-performing when contracting conditions have changed.
(MCZK)
Financial assets at amortised cost with
forbearance Carrying amount Carrying amount (gross) Loss allowances
Stage Stage Stage Stage Stage Stage
Financial assets at amortised cost with
forbearance , , ()
(MCZK)
Financial assets at amortised cost with
forbearance Carrying amount Carrying amount (gross) Loss allowances
Stage Stage Stage Stage Stage Stage
Financial assets at amortised cost with
forbearance , , , () ()
85 3 Financial Statements
In 2024, the Bank recognises interest income on receivables with forbearance of CZK 645 million
(2023 – 585 million).
Credit risk management
The Bank structures the levels of credit risk exposures by seing limits for the volume of acceptable risk in
relation to one debtor or a group of debtors, a geographical segment, industry focus or another significant
concentration with a common risk factor.
Proportion of exposures with forbearance to total exposure
Modified contractual cash flows
(MCZK)
Performing
and non-
-performing
exposures in
total
Exposures
with forbea-
rance (net)
Share in
performing
and non-
-performing
exposures
Performing
and non-
-performing
exposures in
total
Exposu-
res with
forbe-
arance
(net)
Share in
performing
and non-
-performing
exposures
Government institutions , . ,
Credit institutions in
total , . ,
Non-financial corpora-
tions , , . , , .
Loans and receivables
at amortised cost , , . , , .
Debt securities at
amortised cost .
Debt securities at fair
value recognised in
other comprehensive
income
.
Performing and non-
-performing exposures
in total
, , . , , .
(MCZK)
Receivables at amortised cost in stages and before modification ,
Modification gains and losses ()
86 3 Financial Statements
Maximum credit exposure
(MCZK)
Total exposure value
Balance
sheet
positions
O-balan-
ce sheet
positions
Total
exposure Insurance
Financial
guarantees
received
Cash
collateral
Securities
in REV. REPO
Total
collateral
Cash in hand, cash with cent-
ral banks and other deposits
repayable on demand
Debt securities at fair value
recognised in other compre-
hensive income
Balance sheet exposures
at amortised cost and
o-balance sheet exposures
, , , , , ,
Exposures from credit
institutions , , , ,
of which Grade , , , ,
of which Grade
Exposures from other
customers , , , , ,
of which Grade , , , , ,
of which Grade , , , ,
of which Grade
Debt securities
Other financial assets , ,
Total exposure , , , , , ,
(MCZK)
Total exposure value
Balance
sheet
positions
O-balan-
ce sheet
positions
Total
exposure Insurance
Financial
guarantees
received
Cash
collateral
Securities
in REV. REPO
Total
collateral
Cash in hand, cash with cent-
ral banks and other deposits
repayable on demand
Debt securities at fair value
recognised in other compre-
hensive income
Balance sheet exposures
at amortised cost and
o-balance sheet exposures
, , , , , ,
Exposures from credit insti-
tutions , , , ,
of which Grade , ,
of which Grade
Exposures from other custo-
mers , , , , ,
of which Grade , , , , ,
of which Grade , , , ,
of which Grade , , , ,
Debt securities
Other financial assets , ,
Total exposure , , , , , ,
87 3 Financial Statements
Derivative financial instruments
The credit risk resulting from open derivative positions is managed within the overall trading limits for
individual debtors, by both amount and term. The credit risk arising from these instruments usually is not
subject to pledge or other guarantees. In other cases, financial collateral is used in the form of received
deposit bearing the basic interest rate of the respective currency.
The credit risk from derivative positions is minimised by the Bank by selecting credible counterparties and
regularly monitoring their financial situation. The derivatives were arranged with counterparties based in
the OECD countries (or with credible domestic counterparties) and having long-term “A” ratings or beer
from international rating agencies.
Other financial assets
For the purposes of credit risk management of other financial assets, the same approach is applied as in
the case of credit risk management of loans.
O-balance sheet exposures
O-balance sheet exposures primarily involve provided loan commitments and financial guarantees. Loan
commitments represent the unused portion of approved credit facilities in the form of loans. With regard
to credit risk arising from loan commitments, the Bank is exposed to the risk of potential loss as equal to
the aggregate amount of unused loan commitments. Losses may be mitigated as not all exposures will
be used.
Concentration of credit risk
The Bank has set a system for the management of limits for individual debtors and economically connected
groups of debtors with regard to the debtor’s territory and industry to ensure that engagement limits
stipulated by regulation are nor exceeded. The credit risk is decreased by way of hedging instruments,
predominantly including the insurance of export risks, cash collateral, securities received as a collateral
in repo transactions.
88 3 Financial Statements
Breakdown by geographic segment
(MCZK)
Carrying
amount (net) Carrying amount (gross) Loss allowances
() Stage Stage Stage Stage Stage Stage
Czech Republic . ()
European Investment
Bank .
Debt securities at
amortised cost . ()
Azerbaijan .
Czech Republic , . , ()
Indonesia , . , ()
Russia , . , ()
Slovak Republic , . , ()
Switzerland . ()
Turkey , . , ()
Ukraine . ()
France , . ,
Other . () ()
Loans and receivables
at amortised cost , . , , , () () ()
Financial assets
at amortised cost , , , , () () ()
Czech Republic .
Luxembourg .
Debt securities at fair
value recognised in OCI .
89 3 Financial Statements
(MCZK)
Carrying
amount (net) Carrying amount (gross) Loss allowances
() Stage Stage Stage Stage Stage Stage
Czech Republic . ()
European Investment
Bank .
Debt securities at
amortised cost ()
Azerbaijan . ()
Czech Republic , . , () ()
Indonesia , . , ()
Russia , . , () ()
Slovak Republic , . , ()
Switzerland , . ,
Turkey . ()
Ukraine . ()
France , . , ()
Other . () () ()
Loans and receivables
at amortised cost , . , , () () ()
Financial assets
at amortised cost , , , () () ()
Czech Republic .
Debt securities at fair
value recognised in
other comprehensive
income
90 3 Financial Statements
Breakdown by industry
(MCZK)
Carrying
amount
(net)
Carrying amount (gross) Loss allowances
() Stage Stage Stage Stage Stage Stage
International deve-
lopment banks and
organisations
.
Public administration
and defence . ()
Debt securities at
amortised cost . ()
Processing industry , . , () ()
Production and dis-
tribution of electricity,
gas, heat, and air
, . , , () () ()
Transport
and warehousing .
Banking and insuran-
ce industry , . , ()
Public administration
and defence , . , () ()
Information techno-
logy , . , ()
Other , . , ()
Loans and receivables
at amortised cost , . , , , () () ()
Financial assets
at amortised cost , , , , () () ()
Public administration
and defence .
International deve-
lopment banks and
organisations
.
Debt securities at fair
value recognized in OCI .
91 3 Financial Statements
(MCZK)
Carrying
amount
(net)
Carrying amount (gross) Loss allowances
() Stage Stage Stage Stage Stage Stage
International deve-
lopment banks and
organisations
.
Public administration
and defence . ()
Debt securities at
amortised cost . ()
Processing industry , . , , () () ()
Production and dis-
tribution of electricity,
gas, heat, and air
, . , () () ()
Transport
and warehousing . ()
Banking and
insurance industry , . , ()
Public administration
and defence , . , ()
Information
technology , . , ()
Other , . , () () ()
Loans and receivables
at amortised cost , . , , () () ()
Financial assets
at amortised cost , , , () () ()
Public administration
and defence .
Debt securities at fair
value recognised in
other comprehensive
income
.
92 3 Financial Statements
(c) Market risk
The Bank is exposed to market risks. Market risks arise from open positions in interest rate and currency
products, all of which are exposed to general and specific market movements. The Bank uses GAP
analyses to track the distribution of interest rate risk in individual currencies over time. In addition, the
Bank estimates the impact of interest rate changes on the Bank's short-term earnings (Net Interest Income
Change Model – NII changes) and the impact of applying standard shock scenarios of changes in market
conditions on the market risk of its positions as the maximum expected loss (Economic Value of Equity
Change Model – EVE changes) and follows the European Banking Association's EBA/RTS/2022/09
document.
The Board sets limits on the acceptable value of risk, from which all market risks limits are derived. Current
utilisation of the limits is monitored on a daily basis by risk management. The Bank uses the EVE method,
which calculates the maximum possible change in the economic value of the Bank’s capital in applying
standard shock scenarios of changes in the interest rate and exchange rate. The Bank has not been
exposed to risks stemming from non-linear instruments. All EVE changes are summarised in the table below.
The first table shows EVE values, specifically the average, high, and low EVE values for the period,
broken down into individual components of this indicator (interest rate and currency risk) and total. They
characterise the levels of three sets of values that make up the daily total change of EVE for all trading
days of the period under review, then the daily currency and interest rate component of this indicator.
The second table contains changes in EVE for the last trading day, again structured as per the interest
* The values reported with the negative sign represent the negative impact while those with the positive sign represent the positive
impact of shock scenarios.
EVE values
(MCZK)* months to December months to December
EVE Average High Low Average High Low
Interest rate risk () () () () () ()
Currency risk () () () ()
Total EVE () () () () () ()
(MCZK)*
EVE
Interest rate risk
Parallel up (plus bps) ()
Parallel down (minus bps) ()
Increase of short-term rates ()
Decrease of short-term rates ()
Steepener (short-term rates down and long-term
rates up) () ()
Flaener (short-term rates up and long-term
rates down) () ()
Maximum () ()
Currency risk
Parallel up
Parallel down () ()
Maximum () ()
Total EVE () ()
93 3 Financial Statements
rate and currency components. The impact of the application of each shock scenario is also presented
in each of these components: six interest rate and two currency scenarios. Interest rate shock scenarios
are taken from regulatory documents, currency shock scenarios are defined as the change in EVE with
a percentage change in the relevant spot FX rate and have been calibrated based on the historical behaviour
of FX rates. We consider the following FX rate changes: a shift of +30% USD/+15% EUR is considered for
the CZK depreciation scenario; a shift of −25% USD/−15% EUR applies to the CZK appreciation scenario.
The Bank conducts quarterly stress testing of the impact of material changes in financial markets on the
level of market exposure. Under the EVE method, so-called stress scenarios based on standard shock
scenarios for day-to-day management of the interest rate and currency risks are used to modify them to
capture an even greater movement of market factors.
(d) Currency risk
The Bank is exposed to the eects of fluctuations in the prevailing foreign exchange rates on its financial
position and cash flows. Currency risk is managed using the currency sensitivity and EVE change analyses,
for which limits are defined to mitigate potential exposure. If the total net currency position is greater than
2% of capital, the size of the open currency position is reflected in the capital adequacy requirement which
is allocated to this risk by the Bank.
The table below summarises the Bank’s exposure to currency risk. Included in the table are the Bank’s
assets and liabilities at carrying amounts, categorised by currency. The net foreign currency position
also includes exposure to currency risk arising from FX derivatives that are used primarily to reduce the
balance sheet currency risk of the Bank.
Concentration of assets, liabilities and o-balance sheet items
(MCZK)
CZK EUR USD Other Tota l
ASSETS
Cash in hand, cash with central banks and other
deposits repayable on demand
Debt securities at fair value recognised in other
comprehensive income
Financial assets at amortised cost , , , ,
Property, plant and equipment
Intangible assets
Tax assets
Other assets ,
Total assets , , , ,
LIABILITIES
Financial liabilities measured at amortised cost , , ,
Provisions
Tax liabilities
Other liabilities
Total liabilities , , ,
Net balance sheet position , () ,
Net currency position , () ,
94 3 Financial Statements
(MCZK)
CZK EUR USD Other Tota l
ASSETS
Cash in hand, cash with central banks and other
deposits repayable on demand
Debt securities at fair value recognised in other
comprehensive income
Financial assets at amortised cost , , , ,
Property, plant and equipment
Intangible assets
Tax assets
Other assets , ,
Total assets , , , ,
LIABILITIES
Financial liabilities measured at amortised cost , , ,
Provisions
Tax liabilities
Other liabilities
Total liabilities , , ,
Net balance sheet position , () ,
Net currency position , () ,
(e) Interest rate risk
The Bank is exposed to interest rate risk as its interest-bearing assets and liabilities have dierent re-fixing
or maturity dates. For floating rate instruments, the Bank is exposed to basis risk, which arises from the
dierences in methods of adjusting individual types of interest rates, primarily EURIBOR and, if relevant,
PRIBOR. Interest rate risk is managed using interest rate GAP analysis, analysis of the change in net
interest income (NII) and change in EVE. For NII and EVE, change indicators a set of limits is defined to
mitigate potential exposure. Interest rate risk management aims at minimising the sensitivity of the Bank
to interest rate fluctuations.
Interest rate gap
(MCZK)
M M – M M – M M – Y Y – Y Y – Y Y – Y Y – Y Y – Y Y Tot al
Assets CZK , , , , ,
Liabilities , , ,
Assets EUR , , , , ,
Liabilities , , , , ,
Assets USD , ,
Liabilities , ,
Assets Tota l , , , , , ,
Liabilities Total , , , , , , ,
Cumulative
GAP , , , , ,
95 3 Financial Statements
Assets and liabilities (e.g., principal and interest), including o-balance sheet items, enter the time basket
in the nominal amount (i.e., without discounting), with floating-rate instruments entering the position on
the date of the next revaluation and fixed-rate instruments on the maturity date.
In accordance with the risk management strategy approved by the Board, the Bank optimises the structure
of its sources of finance comprising bond issues and syndicated loans so that no significant dierences
between the duration of its interest-sensitive assets and liabilities arise.
Interest rate derivatives may be used for mitigating the dierence between the interest rate sensitivity of
assets and liabilities. These transactions are conducted in accordance with the risk management policies
approved by the Board of Directors and the use of hedge accounting rules approved by the ALCO to
reduce the interest rate risk of the Bank.
Interest rate benchmark reform
The Bank continues to use benchmark interest rates PRIBOR or EURIBOR for loans denominated in
CZK or EUR bearing a floating interest rate. The Bank uses TERM SOFR for floating rate loans in USD. As
for derivatives, the Bank decided not to accede to the ISDA IBOR Fallbacks Supplement and to deal with
individual transactions bilaterally.
(f) Liquidity risk
Liquidity risk arises from dierent types of financing the Bank’s activities and the management of its
positions. It includes both the risk of the Bank’s ability to finance its assets by way of instruments with
appropriate maturity and the Bank’s ability to liquidate/sell its assets at a favourable price in a favourable
time frame.
The Bank's liquidity risk management uses its own methods for measuring and monitoring net cash flows
and liquidity positions. The dierences between the inflow and outflow of funds are measured by a liquidity
gap analysis which determines the liquidity positions for dierent time baskets (gaps). GAP is composed
of undiscounted cash flows in nominal amounts of principal and accessories (interest, commitment
commissions, etc.). Fixed maturity inflows and outflows are based on contractual arrangements; liquidity
assumptions for inflows and outflows are the expected maturities of products without fixed contractual
maturities (current and nostro accounts, insurance claims). The liquidity provision is stated at the fair value
of highly liquid securities and receivables from the CNB.
(MCZK)
M M – M M – M M – Y Y – Y Y – Y Y – Y Y – Y Y – Y Y Tot al
Assets CZK , , , ,
Liabilities , , , , ,
Assets EUR , , , , ,
Liabilities , , , , , , ,
Assets USD , , ,
Liabilities , , ,
Assets Tota l , , , , ,
Liabilities Total , , , , , , ,
Cumulative
GAP , , , , , ,
96 3 Financial Statements
Liquidity gap
In 2024, the bank entered into a credit line agreement valid until 16 October 2025, which allows it to draw
a revolving short-term loan of up to EUR 100 million.
Liquidity development in the currency structure of CZK, EUR, USD and in the total for the Bank is monitored
at several levels, i.e. at the level of the standard and the alternative scenarios and three stress scenarios
that quantify the impact on liquidity in the event of a reputational crisis, market crisis and combined crisis.
The individual scenarios are the basis for regular analysis of survival time. The bank has set a minimum
requirement for the survival of at least two months according to the standard scenario. The Bank has
also determined a system of early warning indicators designed to capture negative trends and to run
a response to an identified situation. Sucient liquidity is controlled by a system of limits and is managed
with the help of on- balance sheet (e.g. cash, liquid securities at FVOCI, issued bonds, loans taken from
banks) and o-balance sheet transactions (foreign exchange swaps, currency interest rate swaps). The
fundraising plan is regularly reviewed by the Bank in response to the current development of liquidity
risk, financial markets, etc.
The Bank has access to diversified sources of financing. These sources comprise issued bonds, bilateral
or club loans from domestic as well as international financial markets and other deposits received from
other banks and customers. This diversification gives flexibility to the Bank and limits its dependence on
one source of finance. On a regular basis, the Bank assesses the liquidity risk, predominantly by monitoring
changes in the financing structure. In compliance with its liquidity risk management strategy, the Bank
also maintains a sucient liquidity reserve primarily composed of cash deposited with the central bank as
well as highly liquid government securities and bonds of the financial institutions of the European Union.
The regulatory liquidity coverage ratio (LCR) has a minimum required compliance level of 100%. The Bank
reported an LCR of 3,088% as at 31 December 2024 (4,533% as at 31 December 2023).
(MCZK)
Up to month – months – months – years Over years Tota l
Fixed maturity inflows , , , , , ,
Inflows – liquidity assumptions , ,
Liquidity reserve , ,
Total inflows , , , , , ,
Fixed maturity outflows , , , , ,
Outflows – liquidity assumptions
Capital , ,
Total outflows , , , , , ,
Cumulative GAP , , , , , ,
(MCZK)
Up to month – months – months – years Over years Tota l
Fixed maturity inflows , , , , , ,
Inflows – liquidity assumptions
Liquidity reserve , ,
Total inflows , , , , , ,
Fixed maturity outflows , , , , , ,
Outflows – liquidity assumptions , ,
Capital , ,
Total outflows , , , , , ,
Cumulative GAP , , , , , ,
97 3 Financial Statements
The regulatory net stable funding ratio (NSFR) has a minimum required level of 100%. The Bank reported
an NSFR of 171% as at 31 December 2024 (157% as at 31 December 2023).
The Bank’s liquidity is stabilised and resources due can be easily replaced by new medium and long-term
resources.
The stated values are based on contractual non-discounted cash flows.
Maturity of non-derivative financial liabilities
The provided financial guarantees are non-payment guarantees unlikely to be called within one month
due to their nature, the negligible frequency with which they have been called in the past and the credit
risk. Therefore, the final expiry date when the guarantees can be called is applied.
(MCZK)
Up to month – months – months – years Over years Tot al
Financial liabilities to credit
institutions at amortised cost , , ,
Financial liabilities to other
customers at amortised cost , ,
Issued debt securities at amor-
tised cost , , , ,
Lease liabilities
Total financial liabilities at
amortised cost , , , , ,
Provided loan commitments , ,
Provided financial guarantees ,
(MCZK)
Up to month – months – months – years Over years Tot al
Financial liabilities to credit
institutions at amortised cost , , ,
Financial liabilities to other
customers at amortised cost , ,
Issued debt securities at amor-
tised cost , , ,
Lease liabilities
Total financial liabilities at
amortised cost , , ,
Provided loan commitments , ,
Provided financial guarantees , ,
98 3 Financial Statements
(g) Fair values of financial assets and liabilities
The following table summarises the carrying amounts and fair values of those financial assets and liabilities
not presented on the Bank’s balance sheet at their fair values. The yield curves used in calculating fair
values are sourced from the Refinitiv system. The fair value of loans classified in level 2 and level 3 is
equal to the carrying amount.
Debt securities of government and central banks are all quoted and measured at level 1, issued debt
securities are measured at level 2. All other financial assets and liabilities are measured at fair value within
the level 2, with the exception of receivables and liabilities from customers. Receivables and liabilities from
customers are measured at level 3.
Receivables from credit institutions
Receivables from credit institutions include interbank deposits and other receivables from banks. The fair
value of floating rate deposits and overnight deposits is equal to their carrying amount. The estimated
fair value of deposits with a fixed interest rate is based on discounted cash flows based on the prevailing
yield curve for the respective remaining maturity.
Receivables from other customers and securities measured at amortised cost
The estimated fair value of customer loans represents the discounted amount of estimated future cash
flows. Expected cash flows are discounted using prevailing interest rates for the remaining maturity,
considering credit spreads of relevant financial instruments at year-end.
Debt securities at amortised cost are measured at market prices prevailing at year-end.
Liabilities to banks and customers
The estimated fair value of deposits with unspecified maturity, which includes interest-free deposits, is
an amount repayable on demand. The estimated fair value of deposits bearing fixed interest and other
borrowings without a quoted market price is based on discounted cash flows using the prevailing yield
curve for the respective remaining maturity.
Carrying amount Fair value
(MCZK)
FINANCIAL ASSETS
Loans and receivables from central
banks , , , ,
Loans and receivables from other
credit institutions , , , ,
Total loans and receivables from
credit institutions at amortised cost , , , ,
Loans and receivables from other
customers at amortised cost , , , ,
Debt securities at amortised cost
FINANCIAL LIABILITIES
Financial liabilities to credit instituti-
ons at amortised cost , , , ,
Financial liabilities to other customers
at amortised cost , , , ,
Issued debt securities at amortised
cost , , , ,
99 3 Financial Statements
Liabilities from issued debt securities
Liabilities from issued bonds are measured using a model of discounted cash flow model using current rates.
Oseing of financial instruments
(MCZK)
Gross
amounts
of financial
assets
Gross amounts
of financial liabi-
lities o-set
Net amount of
financial assets
reported in the
balance sheet
Pledged
securities
Cash
collateral
Net
amount
Receivable from
reverse repo
transaction
, , ,
(MCZK)
Gross
amounts
of financial
assets
Gross amounts
of financial liabi-
lities o-set
Net amount of
financial assets
reported in the
balance sheet
Pledged
securities
Cash
collateral
Net
amount
Receivable from
reverse repo
transaction
, , ,
(h) Capital management
The aim of the Bank with respect to capital management is to comply with the regulatory requirements
in the area of capital adequacy and to maintain sucient capital in order to strengthen the development
of ocially supported financing provided pursuant to Act No. 58/1995 Coll.
The Bank uses the standardised approach based on an external rating to calculate the capital requirement
for the credit risk of the investment portfolio, i.e. to calculate risk-weighted exposures. The risk weighting
is based on the exposure category and credit quality. Exposure classes and risk weights when using
the standardised approach are defined by Regulation of the European Parliament and the Council (EU)
No. 575/2013 of 26 June 2013 on prudential requirements for credit institutions and investment firms and
amending Regulation (EU) No. 648/2012.
Credit quality is determined based on external rating, which was set by the rating agency, registered
in accordance with Regulation (EC) No. 1060/2009 of the European Parliament and of the Council of
16 September 2009 on credit rating agencies and included in the list of agencies for credit assessment
maintained for this purposes by the European Securities and Markets Authority (ESMA) or by an export
credit agency, which publishes reviews and complies with OECD methodology for classifying countries.
When calculating risk weighted exposures, the Bank considers methods of decreasing credit risk, such
as pledging property as collateral (financial collateral) or individual security of exposures (insurance and
other guarantees).
The Bank has created and uses a system of internally set capital (SVSK) in order to fulfil its statutory
duties in the area of planning and continuously maintaining internally set capital in the amount, structure
and distribution, so that the risks, which could threaten the Bank, are suciently covered.
SVSK is established to reflect the Bank’s nature of a specialised bank institution directly and indirectly
owned by the state intended to provide financing or ocially supported financing and related services
pursuant to Act No. 58/1995 Coll. and with respect to the scope and complexity of activities resulting from
operating ocially supported financing and related services and corresponding risks.
100 3 Financial Statements
The Board of Directors approved the SVSK concept in the form of a capital management strategy which
defines the key goals, principles, parameters and limits of SVSK, including the methods used to evaluate
and measure each risk undertaken by the Bank.
Quantifiable risks within SVSK are assessed in the form of internally set capital requirements. Other risks
within SVSK are covered by qualitative measures in risk management and organisation of processes and
controls (code of ethics, code of corporate governance, etc.).
In 2024 and 2023, the Bank met all regulatory requirements for capital adequacy.
The Bank has determined regulatory capital according to the BASEL 3 rules codified in Regulation (EU)
No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements
for credit institutions and investment firms and amending Regulation (EU) No. 648/2012.
4 Critical accounting estimates and judgements in applying
accounting policies
The Bank makes estimates and assumptions that aect the reported amounts of assets and liabilities.
Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the current
circumstances.
(a) Impairment losses on financial assets, loan commitments, guarantees and
contractual assets
To measure the expected credit loss, a system was developed that included workflows, models and inputs
into the information system. Critical areas include methodologies to regulate default, significant increase
in credit risk (SICR), probability of loss (PL) loss, exposure at loss (EAD) and macroeconomic models.
The Bank continuously checks and verifies these models and inputs into information systems. For the
purposes of determining impairment losses, a system is in place for ongoing and periodic monitoring of
credit exposures and reporting of changes in the credit risk to the management.
The assessment of a significant increase in credit risk leading to the recognition of allowances and
provisions in the amount of lifetime expected credit loss is subject to expert estimates and assessment by
the Bank’s management. This assessment compares the change in credit risk upon initial recognition and
at the reporting date. The Bank uses various observable and verifiable events that are available without
incurring undue costs to indicate prospects for the future.
Regulatory capital
(MCZK)
Paid-up share capital registered in the Commercial Register , ,
Funds from profit , ,
Accumulated other comprehensive income () ()
Retained earnings ,
Adjustments of capital due to the use of prudential filters ()
Tier capital , ,
Capital , ,
101 3 Financial Statements
(b) Assessment of the business model and contractual cash flows
The Bank’s business model
The Bank’s business model is a strategy set out by the Bank’s management, which formulates the objectives
of financial asset management. In stating the Bank’s business model, the Bank’s management worked
with the frequency, timing and value of transactions, cash flow characteristics, and expectations related
to future sales. The Bank applies a mixed business model. In the main business model, the Bank provides
export financing products, especially credit products and trade finance products in accordance with Act
No. 58/1995 Coll., on Insurance and Financing Exports with State Subsidies, as amended, and related
regulations. The objective of the main business model is to obtain contractual cash flows, which are the
principal and interest on outstanding principal. The Bank’s supplementary business model is the holding
of an asset with the purpose of obtaining contractual cash flows from the principal and interest as well
as selling the asset. The Bank does not arrange any financial assets or financial liabilities held for trading.
For instruments measured at amortised cost (AC), the objective is to collect cash flows representing
a principal and interest. It is assumed that sales will occur rarely and in insignificant volumes, or only in
situations such as:
a) Reduction in the credit quality of the asset’s issuer, sale of assets with increased credit risk
b) Sales shortly (3 months) before maturity
c) Unforeseen urgent financial needs of the Bank as a result of the occurrence of an extraordinary
event defined in the emergency plan and/or danger to the liquidity management limits under stress
scenarios, i.e. the securing of the Bank’s financial needs in the event of an emergency situation and
medium-term liquidity problems
d) Compliance with regulatory limits for credit risk management if these sales are infrequent, or they
are frequent, but their value is not material taken separately/together.
For financial assets at fair value through other comprehensive income (FVOCI), the intentions of the business
model are met by collecting principal and interest as well as by sales. Sales may also occur in the event of:
e) Securing the financial needs of the Bank in the event of an emergency situation and/or threats to
liquidity management limits under stress scenarios and temporary or short-term liquidity problems
f) Reduced need to hold the liquidity buer with respect to compliance with the LCR regulatory limits
or acceptable liquidity risk levels for measuring the survival time
g) Verifying the marketability/liquidity of the asset on the market or testing the functionality of the
emergency plan for extraordinary situations in managing the liquidity of the Bank
h) As part of the provision of syndication products.
Contractual cash flows
When deciding on the classification of financial assets, it is important to assess whether the contract
determines dates for specific cash flow that consist solely of principal and interest payments (SPPI). In order
to assess whether the contractual cash flows are in line with the basic credit arrangement, a procedure
has been developed that is performed by the Bank upon initial recognition. Deviations from the standard
model of payments of principal and interest for classifying an asset as AC or FVOCI are assessed by the
ALCO based on significance and frequency.
Instruments that do not meet the SPPI test are measured at fair value through profit or loss (FVTPL).
102 3 Financial Statements
(c) State subsidy
When recognising a state subsidy taking into account the principles of Act No. 58/1995 Coll., which
was designed to support Czech export through supported financing rather than to promote the Bank
as an entity owned by the state, the Bank assessed the subsidy in accordance with IAS 20 as a subsidy
reported in income compensating a portion of expenses rather than as a transaction with the owner with
an impact on equity.
(d) Income taxes
The Bank is subject to Czech income tax in compliance with eective regulations. The Bank recognises
liabilities in the amount of anticipated tax assessments based on estimates. Where the final tax liability
diers from the anticipated amounts, the resulting dierences have an impact on the tax expense and
the deferred tax liability in the period in which the assessment is made.
5 Operating segments
Providing supported financing is broken down into financing with and without links to the state budget.
The Bank predominantly assesses performance of its operating segments according to interest income,
interest expense, impairment losses on loans and the amount of provided/received loans.
Circle 001 includes operating activities, financing not eligible for a subsidy and other related activities in
accordance with banking licence and the resulting income and expenses. All these activities are carried
out under market conditions, without direct links to the state budget.
Circle 002 includes all activities relating to supported financing which are eligible for a subsidy from
the state budget, and the resulting selected income and expenses which are considered in calculating
eligibility for the subsidy.
(MCZK)
Circle Circle Tot al Circle Circle Total
Interest income , , ,
Interest expense () () () () () ()
Fee and commission income
Fee and commission expense () () () () () ()
(Losses from the impairment of financial
assets not recognised at FVTPL) or their
reversal
() ()
(Provisions for provided commitments
and guarantees) or their reversal () ()
Administrative expenses () () () ()
Other expenses/income () () () () ()
Loss/profit before income tax
Income tax () () () ()
Net profit for the year ()
Loans and receivables at amortised
cost , , , , , ,
Total assets , , , , , ,
Financial liabilities measured
at amortised cost , , , , , ,
Total liabilities and equity , , , , , ,
103 3 Financial Statements
Interest on liabilities comprise interest income from bonds issued in the period of negative interest rates.
The “Other interest – leases” line item includes interest expense assessed for the lease liability using
a reviewed eective interest rate of 3.7% p.a. (2023: 5.94% p. a.).
Interest expense is calculated using the eective interest rate with the exception of interest from finance
lease of CZK 2 million (2023: CZK 1 million).
6 Net interest income
Revenue from core activities of the Bank as per geographic segment
(MCZK)
Interest
income
Fee and
commission
income
Total Interest
income
Fee and
commission
income
Total
Czech Republic
Slovak Republic
Indonesia
Russia
Switzerland
Azerbaijan
Turkey
Other
Total interest income and fees , , , ,
(MCZK)
Interest income from loans to credit institutions
of which: Interest on non-performing loans
Interest income from loans to other customers , ,
of which: Interest on non-performing loans
Interest income from interbank deposits
Interest income from receivables from CNB – repos
Interest on current accounts with other banks
Interest on loans and receivables at amortised cost , ,
Interest on debt securities at fair value recognised in the OCI
Interest on debt securities at amortised cost
Interest on liabilities
Other interest income
Interest income , ,
Interest expense from received bank loans () ()
Interest expense from term deposits () ()
Interest expense from current accounts () ()
Interest expense from issued securities () ()
Interest expense from financial liabilities at amortised cost () ()
Other interest – leases () ()
Interest expense () ()
Net interest income , ,
104 3 Financial Statements
7 Net fee and commission income
8 Net profit or (loss) from financial transactions including state
subsidy
The Bank did not qualify for a subsidy for a loss from ocially supported financing in 2024 or in 2023.
(MCZK)
Fees and commissions from loan agreements
Fees and commissions from payments
Fees and commissions from guarantees
Fee and commission income
Fees for guarantees () ()
Fee for security operations ()
Fees and commissions for rating () ()
Fee and commission expense () ()
Net fee and commission income
(MCZK)
Profit or (loss) on derivative transactions with currency instruments ()
Profit or (loss) on financial assets and liabilities held for trading ()
Foreign exchange gains or (losses)
Net profit or (loss) from financial transactions including state
subsidy
105 3 Financial Statements
9 Administrative expenses, depreciation/amortisation and other
operating expenses
In 2024, the income of members of the Board of Directors and the Supervisory Board amounted to
CZK 21 million (2023 – CZK 21 million). Sta costs also include provisions for bonuses and employee
benefits.
The provision for bonuses for groups of employees having an influence on the Bank’s overall risk profile
the payment of which is deferred and depends on the financial results and other criteria in future years
amounted to CZK 12 million (2023 – CZK 11 million). The provision for social security and health insurance
relating to these deferred bonuses of CZK 4 million (2023 – CZK 4 million) was created. Provisions for
employee benefits (the sum of provisions for long-term employee benefits, untaken holidays, severance
pays, etc.), including social security and health insurance, decreased to CZK 4 million.
Depreciation/amortisation of fixed assets includes amortisation of the right-of-use assets under a lease
of CZK 10 million (2023 – CZK 10 million).
Number of employees
Average recorded number of employees
Board and Supervisory Board
(MCZK) Note
Salaries and emoluments () ()
Social security and health insurance costs () ()
Other sta costs () ()
Sta costs () ()
Information technology () ()
Contribution to the Financial market guarantee system () ()
Other () ()
Total administrative expenses () ()
Depreciation of property, plant and equipment () ()
Software amortisation () ()
Write-os () ()
Cost of debt collection () ()
Value added tax () ()
Other ()
Other operating expenses () ()
Total operating costs () ()
106 3 Financial Statements
10 Net gain on impaired assets and wrien-o receivables
The item “Net gain on wrien-o receivables” primarily comprises income from insurance payments for
receivables sold in prior periods of CZK 121 million (2023 – CZK 148 million) and the proceeds related to
previously wrien-o receivables of CZK 9 million (2023 – CZK 8 million).
(MCZK)
(Creation) / release of loss allowances – Stage
(Creation) / release of loss allowances for loans to credit institutions
(Creation) / release of loss allowances – Stage () ()
(Creation) / release of loss allowances – Stage ()
(Creation) / release of loss allowances – Stage ()
(Creation) / release of loss allowances for receivables to other customers () ()
Net income from wrien-o receivables from other customers
Net gain on wrien-o receivables
Net gain on impaired assets and wrien-o receivables
11 Income tax expense
Tax non-deductible expenses primarily include the creation of provisions for the payment of bonuses to
employees and deferred bonuses to members of the Board of Directors, including the related social security
and health insurance contributions, of CZK 48 million. Income not liable to tax primarily comprises items
of the use of provisions for the payment of bonuses to employees and members of the Board of Directors,
including the related social security and health insurance contributions, of CZK 43 million and income
from wrien-o receivables of CZK 9 million. In 2023, tax non-deductible expenses primarily included
the creation of provisions for the payment of bonuses to employees and deferred bonuses to members
of the Board of Directors, including the related social security and health insurance contributions, of
CZK 46 million. Income not liable to tax in 2023 primarily comprised items of the use of provisions for the
The tax charge from the Bank’s profit before tax can be analysed as follows:
The income tax consists of:
(MCZK)
Income tax for the current period – current () ()
Income tax for the prior period – current
Deferred income tax
Income tax expense () ()
(MCZK)
Profit before income tax
Income tax at (: rate) () ()
Eect of tax non-deductible expenses () ()
Eect of income not liable to tax
Income tax for prior periods
Income tax – subtotal (.) () (.) ()
Income tax (.) () (.) ()
107 3 Financial Statements
payment of bonuses to employees and members of the Board of Directors, including the related social
security and health insurance contributions, of CZK 41 million and a decrease in loan loss allowances of
CZK 44 million.
12 Cash in hand, cash with central banks and other deposits
repayable on demand
The item ‘Cash in hand, cash with central banks and other deposits repayable on demand’ includes deposits
with banks repayable on demand, including balances on the account of minimum mandatory reserves.
Minimum mandatory reserves are set up as 2% of the Bank’s liabilities from the deposits and loans received
from other customers and of issued debt securities held by these entities which have a maturity shorter
than two years, recorded at the end of the calendar month preceding the month in which the relevant
period commences. The set amount of minimum mandatory reserves is measured against the average
balances on the minimum mandatory reserves account for the maintenance period starting on the first
Thursday of the month and ending on the Wednesday before the first Thursday of the following month.
The funds in the minimum mandatory reserves account are available daily and used to provide operational
liquidity. The regulator's requirements are complied with on a monthly basis.
For cash flow statement purposes, “Cash and cash equivalents” include “Cash in hand, cash with central
banks and other deposits repayable on demand”, as well as selected receivables with “a maturity of less
than 3 months from acquisition.
For ECL measurement purposes, all financial assets included in cash and cash equivalents are classified
in Stage 1.
(MCZK)
Cash in hand, cash with central banks and other deposits re-
payable on demand (net)
Receivables from central banks due within months , ,
Receivables from other credit institutions due within months , ,
Cash equivalents , ,
Loss allowances () ()
Cash equivalents , ,
Cash and cash equivalents , ,
(MCZK)
Cash with central banks
of which Accounts of cash reserves with central banks
Other deposits repayable on demand
Cash in hand, cash with central banks and other
deposits repayable on demand
Loss allowances ()
Cash, cash with central banks
and other deposits repayable on demand
108 3 Financial Statements
13 Loans and receivables at amortised cost
At the end of 2024, the receivables wrien-o and in the process of hard collection amounted to
CZK 10,273 million (2023 – CZK 10,742 million). Generally, these receivables represent receivables where
the Bank acts as an agent in the process of hard collection under obligations from insurance contracts.
Loans and receivables from credit institutions at amortised cost
(MCZK)
Receivables included in cash equivalents , ,
Other receivables from credit institutions , ,
Loss allowances for receivables () ()
Total loans and receivables from credit institutions at amortised
cost , ,
Receivables from other customers , ,
Loss allowances for receivables () ()
Total loans and receivables from other customers at amortised
cost , ,
Total loans and receivables at amortised cost , ,
Remaining maturity:
Short-term loans and receivables , ,
Long-term loans and receivables , ,
(MCZK)
Loans provided to central banks , ,
Deposits with central banks , ,
Loans and receivables from central banks , ,
Deposits with other credit institutions , ,
Purchased receivables from other credit institutions
Loans and receivables from other credit institutions , ,
Loss allowances for loans and receivables to credit institutions () ()
Total loans and receivables from credit institutions
at amortised cost , ,
Remaining maturity:
Short-term receivables from credit institutions , ,
Long-term receivables from credit institutions
109 3 Financial Statements
Loans and receivables from other customers at amortised cost
(MCZK)
Pre-export loan
Export loan , ,
Investment loan , ,
Operating loan ,
Purchase of receivables
Receivables from other customers at amortised cost , ,
Loss allowances for receivables () ()
Total receivables from other customers at amortised cost , ,
Remaining maturity:
Short-term receivables from other customers , ,
Long-term receivables from other customers , ,
14 Debt securities
State coupon bonds and bonds of international development banks are usually purchased for the portfolio
of debt securities. Most of the current portfolio comprises bonds issued by the Czech Ministry of Finance.
All investment securities in the Bank's portfolio are, according to IFRS 9, categorized as Stage 1. All
securities are listed.
(MCZK)
Carrying amount Carrying amount (gross) Loss allowances
Stage Stage Stage Stage Stage Stage
Debt securities at fair value
recognised in other
comprehensive income
Debt securities at amortised cost ()
(MCZK)
Carrying amount Carrying amount (gross) Loss allowances
Stage Stage Stage Stage Stage Stage
Debt securities at fair value
recognised in other
comprehensive income
Debt securities at amortised cost ()
110 3 Financial Statements
15 Property, plant and equipment
The Bank uses an operating lease with a notice period of one year. In 2024, the cost of lease amounted
to CZK 12 million (2023 – CZK 11 million). The expected residual lease period as at 1 January 2024 was
5 years. Eective from 2025, the lease was increased by 2.4% due to the development of inflation. The
right-of-use asset was measured at CZK 43 million as at 1 January 2025 (2024: CZK 52 million).
Classification of debt securities by residual maturity
Remaining maturity:
Debt securities at fair value recognised in other comprehensive
income – short-term
Debt securities at fair value recognised in other comprehensive
income – long-term
Debt securities at amortised cost – short-term
Debt securities at amortised cost – long-term
(MCZK) Right-of-use Oce
equipment
Motor
vehicles
Assets under
construction Total
Cost
At January
Additions
Modification
Disposals () () () ()
At December
Additions
Modification
Disposals () () ()
At December
Accumulated depreciation
At January () () () ()
Additions () () ()
Modification
Disposals
At December () () () ()
Additions () () ()
Modification
Disposals
At December () () () ()
Closing net book value
At December
At December
111 3 Financial Statements
16 Intangible assets
17 Other assets
18 Financial liabilities measured at amortised cost
Total financial liabilities at amortised cost
(MCZK)
Intangible assets
Cost at January
Additions
Disposals/transfers ()
Cost at December
Accumulated amortisation at January () ()
Additions () ()
Disposals/transfers
Accumulated amortisation at December () ()
Net book amount at January
Net book amount at December
(MCZK)
Expected insurance payments for assigned loans
Prepayments and accrued income
Other receivables gross
Allowance for other receivables () ()
Total other assets , ,
Remaining maturity:
Current other assets ,
Non-current other assets ,
(MCZK)
Financial liabilities to credit institutions at amortised cost , ,
Financial liabilities to other customers at amortised cost , ,
Deposits, loans and other financial liabilities at amortised cost , ,
Issued debt securities at amortised cost , ,
Total financial liabilities at amortised cost , ,
Remaining maturity:
Short-term payables at amortised cost , ,
Long-term payables at amortised cost , ,
112 3 Financial Statements
Financial liabilities to credit institutions at amortised cost
Financial liabilities to other customers at amortised cost
Financial liabilities at amortised cost arising from issued debt securities
Escrow accounts are deposits from customers held as a form of cash security for provided credit
facilities.
(MCZK)
Borrowings , ,
Total financial liabilities to credit institutions at amortised cost , ,
Remaining maturity:
Total short-term payables to credit institutions ,
Total long-term payables to credit institutions , ,
(MCZK)
Current accounts ,
Term deposits , ,
Escrow accounts
Total financial liabilities to other customers at amortised cost , ,
Remaining maturity:
Short-term payables to other customers , ,
Long-term payables to other customers , ,
(MCZK)
ISIN Currency Issue date Maturity date Amortised cost
XS EUR April March ,
XS EUR May May ,
XS EUR June June ,
XS EUR June June ,
XS EUR June June ,
XS EUR November November ,
XS EUR November November ,
Issued debt securities at amortised cost ,
Remaining maturity:
Short-term liabilities ,
Long-term liabilities ,
113 3 Financial Statements
The Bank is entitled to early redeem bond XS2353477685 in the nominal value of EUR 100 million as at
the coupon payment date of 17 June 2025.
Bonds issued by the Bank are listed on the Luxembourg Stock Exchange.
19 Other liabilities
(MCZK)
Lease liabilities
Accruals and deferrals
Tax liabilities
Liabilities to dierent creditors
of which financial collateral
Total other liabilities
(MCZK)
ISIN Currency Issue date Maturity date Amortised cost
XS EUR November November ,
XS EUR April March ,
XS EUR October October ,
XS EUR May May ,
XS EUR June June ,
XS EUR June June ,
XS EUR June June ,
XS EUR November November ,
Issued debt securities at amortised cost ,
Remaining maturity:
Short-term liabilities ,
Long-term liabilities ,
Reconciliation of cash flows from financing activities
Issued
bonds
Borrowings
received Leases
At December , ,
Inflow ,
Outflow (,) ()
Other non-cash changes
Eect of exchange rate changes
At December , ,
Inflow , ,
Outflow (,) (,) ()
Other non-cash changes ()
Eect of exchange rate changes
At December , ,
114 3 Financial Statements
In 2021, the Bank created a provision for legal costs of litigation conducted abroad of CZK 3 million EUR
(2023 – CZK 75 million; 2024 – CZK 77 million). Considering the circumstances of the case and the legal
environment, the provision was estimated at the upper limit of the possible range, with the final amount
to be decided by the local court.
20 Provisions
(MCZK) Note
Provisions for financial guarantees and leers of credit
At January
Creation / (reversal) of provision b ()
Foreign exchange dierences
At December
Provisions for loan commitments
At January
Creation / (reversal) of provision b ()
Foreign exchange dierences ()
At December
Provisions for deferred compensation including insurance payments
At January
Creation of provision
Release of provision
Usage of provision () ()
At December
Provisions for employee benefits
At January
Creation of provision
Release of provision () ()
Usage of provision ()
At December
Provisions for litigation
At January
Creation of provision
Use of provision
Foreign exchange dierences
At December
Total provisions
Lease liabilities relate to the lease of a building based on a contract for an indefinite period. Annual lease of
CZK 12 million was paid on a straight-line basis at the beginning of each quarter. The lease was increased
by 2.4% eective from 2025 due to the development of inflation. As at 31 December 2023, the revised
borrowing interest rate was set at 3.7% due to a reassessment of the expected lease term. Liabilities from
short-term leases and low-value leases were immaterial as at both 1 January 2024 and 31 December 2024.
115 3 Financial Statements
21 Deferred tax
Deferred income tax is calculated using a tax rate for years of expected use of the deferred tax in the
amount of 21% for 2024 and the following years.
The movement on the deferred income tax account is as follows:
Deferred income tax assets and liabilities incurred for items shown below:
Deferred income tax assets and liabilities are oset if there is a legally enforceable right to oset tax assets
against tax liabilities. a deferred tax asset is created for items that are expected to have a sucient tax
base for their application in subsequent taxation periods.
(MCZK)
Change in the deferred tax on the debt securities at FV recognised in the OCI
Deferred tax on property, plant and equipment and intangible assets
Deferred tax on provisions for employee benefits
Deferred tax on provisions for litigation
Net deferred income tax asset/(liability)
(MCZK) Note
Net deferred income tax asset as at January
Change in property, plant and equipment and intangible assets ()
Change in provisions for employee benefits
Change in provisions for litigation
Total deferred tax asset presented in the income statement
Change in the deferred tax on the debt securities at
FV recognised in the OCI () ()
Net deferred income tax asset as at December
22 Share capital
Pursuant to Act No. 58/1995 Coll., the Czech Republic must own at least two thirds of the Bank's shares.
Shareholder’s rights of the Czech Republic are exercised by the Ministry of Finance of the Czech Republic.
All issues of the Bank’s shares are ordinary shares and are not associated with any special rights.
(MCZK)
Number of shares Nominal value
per share
Total nominal
value Share
Czech Republic , ,
Czech Republic ,
Czech Republic total , , .
EGAP
EGAP
EGAP total .
Total , , .
116 3 Financial Statements
(MCZK)
Number of shares Nominal value
per share
Total nominal
value Share
Czech Republic , ,
Czech Republic ,
Czech Republic total , , .
EGAP
EGAP
EGAP total .
Total , , .
23 Revaluation reserve
24 Reserve funds
Reserve fund
Based on the Articles of Association, the Bank is required to set aside a reserve in equity from profit. The
Bank allocates 5% of net profit to the reserve until 20% of share capital is achieved. This reserve can
be used exclusively to cover losses. In 2024, it increased by CZK 40 million (2023 – CZK 32 million) by
allocating the 2023 profit. The closing balance of the reserve was CZK 892 million (2023 – CZK 852 million).
Other special funds
As part of other special funds from profit, the Bank primarily creates the export risk fund, which is
predominantly intended for covering the Bank’s losses. The balance of the fund amounts to CZK 1,843 million
(2023 – CZK 1,843 million).
In 2024 and 2023, the Bank's General Meeting did not decide on how to use the profit of prior years
(2023 – CZK 760 million; 2022 – CZK 608 million).
(MCZK) Note
Debt securities at fair value recognised in other comprehen-
sive income
At January () ()
Changes in fair value
Deferred tax () ()
Total change
At December () ()
117 3 Financial Statements
25 Related party transactions
The Bank provides specialised services supporting export activities in accordance with Act No. 58/1995
Coll. This Act also determines the shareholders’ structure. The Bank is fully controlled by the Czech
Republic, which owns 84% of the Bank’s share capital directly and 16% of the share capital indirectly via
EGAP, which is fully owned by the Czech Republic. Related-party transactions are concluded within normal
business transactions. Related parties are identified based on the criteria of IAS 24.
Transactions with related parties are entered into under arm’s length conditions. All fees related to collaterals
and guarantees received, including insurance premiums, are borne by the debtors.
Balances with entities controlled by the same controlling entity (the Czech Republic) or having
significant influence
(MCZK)*
Ministry of
Finance of the
Czech Republic
Exportní garanční
a pojišťovací
společnost, a.s.
Czech National
Bank
Národní
rozvojová
banka, a.s.
Total
Cash with central banks and deposits
repayable on demand
Loans and receivables at amortised cost , ,
Debt securities at amortised cost
Debt securities at fair value recognised in
other comprehensive income
Right of use
Other receivables
Expected insurance payments from
assigned loans
Financial liabilities measured at amortised
cost (,) (,)
Lease liabilities () ()
Interest expense () ()
Interest income
Net profit or (loss) on financial operations,
including state subsidy, including aribu-
table exchange rate gains or losses
() ()
Right-of-use asset depreciation () ()
Impairment losses on financial assets
not reported at fair value through P/L (or
reversal)
Received guarantees and loan securities,
receivables and loan commitments (,) (,)
Received collaterals – securities (,) (,)
* positive numbers – assets/contingent liabilities and income; negative numbers – liabilities/contingent assets and expenses.
118 3 Financial Statements
Salaries and bonuses paid to members of the Board of Directors and the Supervisory Board are disclosed
in Note 9. The Bank does not record any other items of receivables or liabilities in respect of members of
the Board of Directors and the Supervisory Board.
Balances with entities controlled by the same controlling entity (the Czech Republic) or having
significant influence
(MCZK) *
Ministry of
Finance of the
Czech Republic
Exportní garanční
apojišťovací
společnost, a.s.
Czech National
Bank
Národní
rozvojová
banka, a.s.
Total
Cash with central banks and deposits
repayable on demand
Loans and receivables at amortised cost , ,
Debt securities at amortised cost
Debt securities at fair value recognised
in OCI
Right of use
Other receivables
Expected insurance payments for assig-
ned loans , ,
Financial liabilities measured at amortised
cost (,) (,)
Lease liabilities () ()
Interest expense () ()
Interest income )
Net profit or (loss) on financial operations,
including state subsidy, including aribu-
table exchange rate gains or losses
() ()
Depreciation of right-of-use asset under
lease () ()
Impairment losses on financial assets
not reported at fair value through P/L (or
reversal)
Received guarantees and loan securities,
receivables and loan commitments (,) (,)
Received collaterals – securities (,) (,)
* positive numbers – assets/contingent liabilities and income; negative numbers – liabilities/contingent assets and expenses.
119 3 Financial Statements
26 Subsequent events
Prepared on: 20 March 2025
Signed on behalf of the Bank’s Board of Directors by:
Ing. Daniel Krumpolc
Chairman of the Board
of Directors and CEO
Ing. Petr Vohralík
Vice-Chairman of the Board
of Directors and Deputy CEO
Purchase of the Bank’s own shares
On 22 January 2025, based on the intention of the Government of the Czech Republic declared by
Decision no. 909 of 23 November 2023, the Bank’s General Meeting approved the purchase of 16% of the
Bank’s own shares from Exportní garanční a pojišťovací společnost, a.s. for the price of CZK 1,128 with the
intention to subsequently adopt a further decision of the General Meeting to reduce the share capital by
CZK 800 million. Based on the positive opinion of the Czech National Bank, the Bank purchased 16% of
its own shares. The reduction in capital will not have a negative impact on the Bank’s business policy and
operations and the capital level will remain strong enough to meet regulatory capital requirements. The
terms and scope of the state guarantee under Act No. 58/995 Coll. will not be aected by this operation.
Amendment to Act No. 58/1995 Coll.
On 19 February 2025, the new act on the National Development Bank and an amendment to Act No. 58/1995
Coll. came into force, under which the Bank may become the subsidiary of Národní rozvojová banka, a.s.,
which is wholly owned by the Czech state. At the same time, the amendment to the act will enable the
Bank to finance the supplies of Czech companies for foreign companies operating on Czech territory.
Early repayment of a significant loan
On 25 January 2025, one borrower made an early repayment of a provided loan at gross carrying amount
of CZK 7,890 million.
Apart from the above, the Company’s management is not aware of any events that have occurred since
the balance sheet date that would have any material impact on the financial statements as at 31 December
2024.
120
Report on relations
04
121 4 Report on relations
4 Report on relations between related
parties for the period from 1 January
2024 to 31 December 2024
prepared in accordance with Section 82 (1) of Act No. 90/2012 Coll., on Corporations and Cooperatives
(Act on Corporations), as amended
Company name: Česká exportní banka, a.s.
Registered oce: Praha 1, Vodičkova 34 č. p. 701, post code 111 21
Corporate ID: 63078333
Tax ID: CZ63078333
Recorded in the Register of Companies: Municipal Court in Prague, Section B, File 3042
4.1 Structure of relations between the controlling entities and the
controlled entity and relations between the controlled entity
and entities controlled by the same controlling entity
Česká exportní banka, a.s.
Ministry of Finance of the Czech Republic 84%
For information on other related parties, refer to the Appendix.
Exportní garanční a pojišťovací společnost, a.s. 16%
4.2 Role of the controlled entity
Act No. 58/1995 Coll., on Insurance and Financing of Exports with State Support, authorises the Bank
primarily to finance exports with state support in line with international rules on state aid applied in
financing export credits with maturity exceeding two years (predominantly the “OECD Consensus”) and
the WTO’s policies.
In compliance with Section 8 (1) (c) of Act No. 58/1995 Coll., on Insurance and Financing Exports with
State Support, the state is held liable for the Bank’s obligations arising from payments of funds received
by the Bank and for obligations arising from the Bank’s other transactions on the financial markets.
4.3 Method and means of control
The controlling entity of the Bank is the state. The state performs its shareholder rights directly through the
ministry referred to below and indirectly through Exportní garanční a pojišťovací společnost, a.s. (Export
Guarantee and Insurance Corporation).
122 4 Report on relations
Composition of shareholders and their share in voting rights
. Ministry of Finance of the Czech Republic of shares
having its registered oce at Letenská , Praha , post code , corporate ID , votes
. Exportní garanční apojišťovací společnost, a.s. of shares
having its registered oce at Letenská , Praha , post code , corporate ID votes
Individual shareholders exercise their rights primarily through the following bodies:
General Meeting – the supreme body of the Bank that decides through the majority of present shareholders
on the issues that are entrusted into its competencies by Act No. 90/2012 Coll., on Business Corporations
and Cooperatives (the Act on Business Corporations), as amended, and the Bank’s Articles of Association.
Supervisory Board – the control body of the Bank that supervises the activities of the Board of Directors
and business activities of the Bank and presents its statements to the General Meeting.
4.4 List of actions taken in the reporting period
The Bank took no actions regarding assets that exceed 10% of the equity of the controlled entity as
identified on the basis of the most recent set of financial statements, at the initiative or in the interest of
the controlling entity or entities controlled by it.
4.5 List of mutual contracts between the controlled entity and the
controlling entity or between the controlled entities
Amendments to individual insurance contracts
1. Amendment No. 13 of 17 April 2024 to insurance contract No. 135006637
2. Amendment No. 14 of 28 August 2024 to insurance contract No. 135006637
3. Amendment No. 15 of 26 September 2024 to insurance contract No. 135006637
4. Amendment No. 16 of 19 December 2024 to insurance contract No. 135006637
5. Amendment No. 01 of 5 November 2024 to insurance contract No. 107011812
6. Amendment No. 06 of 11 October 2024 to insurance contract No. 107011171
7. Amendment No. 08 of 11 October 2024 to insurance contract No. 107010203
Insurance rulings
1. Insurance ruling No. 07 of 21 February 2024 to insurance contract No. 107011812
2. Insurance ruling No. 08 of 27 May 2024 to insurance contract No. 107011812
3. Insurance ruling No. 09 of 20 August 2024 to insurance contract No. 107011812
4. Insurance ruling No. 10 of 20 August 2024 to insurance contract No. 107011812
123 4 Report on relations
Amendments to insurance rulings
1. Insurance ruling No. 09 of 25 September 2024 to insurance contract No. 107011812
2. Insurance ruling No. 10 of 25 September 2024 to insurance contract No. 107011812
Characteristics of the contracts/amendments Number
New limit insurance contracts, type Bf
New limit insurance contracts, type D
Amendments to limit insurance contracts, type Bf
Amendments to insurance contracts, type D
Amendments to insurance contracts, type Z
Total new one-time and limit insurance contracts and amendments
Amendment to insurance rulings on the limit insurance contracts, type D, issued in
Insurance rulings on the limit insurance contracts, type D, issued in
Total new insurance rulings and their amendments issued to limit insurance contracts
(including rulings on limit insurance contracts concluded in prior years)
Agreement on the selement of obligations under insurance contract
Total new insurance contracts, amendments to insurance contracts concluded in and
insurance rulings on insurance agreements concluded in (including rulings on limit
insurance contacts concluded in prior years)
Insurance contracts and amendments to insurance contracts with CEB concluded
between 1 January 2024 and 31 December 2024
Insurance contracts with CEB eective as at 31 December 2024 (including contracts
concluded in 2024)
Characteristics of the contracts Number
One-time insurance contract, type If
One-time insurance contracts, type Z
One-time insurance contracts, type D
Total one-time insurance contracts in eect as at December
Limit insurance contracts, type Bf, including insurance rulings on those contracts
Limit insurance contracts, type D, including insurance rulings on those contracts
Total limit insurance contracts and insurance rulings issued to limit insurance
contracts (including rulings on limit insurance contracts concluded in prior years) in
eect as at December
Total number of insurance contracts (including insurance rulings on limit insurance
contracts) which were in eect as at December
124 4 Report on relations
Contracts with EGAP eective as at 31 December 2024
1. Lease agreement dated 9 December 2022 and eective from 1 January 2023, Amendment No. 1
to the lease agreement dated 26 September 2023
2.
Amendment No. 4 to the agreement on establishing deposit accounts and on rules and conditions
for making term deposits with an individual interest rate on deposit accounts dated 17 June 2022
3.
Agreement on establishing deposit accounts and on rules and conditions for making term deposits
with an individual interest rate on deposit accounts dated 1 December 2005
4.
Amendment No. 1 to the agreement on establishing deposit accounts and on rules and conditions
for making term deposits with an individual interest rate on deposit accounts dated 15 August 2018
5.
Amendment No. 2 to the agreement on establishing deposit accounts and on rules and conditions
for making term deposits with an individual interest rate on deposit accounts dated 17 April 2019
6.
Amendment No. 3 to the agreement on establishing deposit accounts and on rules and conditions
for making term deposits with an individual interest rate on deposit accounts dated 30 September
2020
7. Agreement on commercial current accounts No. 21684 dated 23 April 2014
8. Amendment No. 1 to the agreement on commercial current accounts No. 21684 dated 10 August
2020
9. Amendment No. 2 to the agreement on commercial current accounts No. 21684 dated 7 October
2020
10.
Agreement on withdrawal of notice and Amendment No. 3 to the agreement on commercial current
accounts No. 21684 dated 28 June 2024
11.
Amendment No. 4 to the agreement on commercial current accounts No. 21684 dated 28 July 2024
12. Amendment No. 5 to the agreement on commercial current accounts No. 21684 dated 15 August
2024
13. Framework agreement on trading on the financial market dated 4 April 2014
14.
Agreement to change the currency of insurance benefit under insurance agreement No. 107008291
dated 18 December 2023
15. Cooperation agreement in insuring business cases – pre–export loans against the risk of being
subject to default and on bank guarantees against the risk of their utilisation, provided to SMEs
dated 26 June 2008
16. Agreement on the protection and non-disclosure of confidential information between CEB, a.s.
and EGAP, a.s. dated 11 November 2015
17.
Cooperation agreement in providing support to SMEs concluded between CEB, a.s.,
CMZRB, a.s., EGAP, a.s., and Raieisenbank a.s. dated 10 December 2009
18.
Cooperation agreement in providing support to SMEs concluded between CEB, a.s.,
CMZRB, a.s., EGAP, a.s., and KB, a.s. dated 6 October 2009
19. Financial collateral transfer agreement dated 15 August 2024
20. Agreement on the protection and non-disclosure of confidential information between CEB, a.s.
and EGAP, a.s. dated 12 June 2024
Contracts with the Ministry of Finance of the Czech Republic eective as at 31 December 2024
1. Agreement on rules and conditions for the provision of loans between CEB, a.s. and the Ministry
of Finance of the Czech Republic dated 17 February 2010
2. Framework agreement on trading on the financial market dated 12 March 2020
3. Agreement on the protection and non-disclosure of confidential information between CEB, a.s.
and the Ministry of Finance of the Czech Republic dated 21 June 2023
All of the above agreements were concluded under arm’s length conditions and the Bank suered no
detriment arising therefrom.
The state, as the controlling entity, did not adopt any measures, which would cause detriment to the Bank
in the most recent reporting period. During the reporting period, the Bank did not adopt any other measures
at its own will or in the interest or at the initiative of other related parties, other than those referred to above.
125 4 Report on relations
4.6 Advantages and disadvantages arising from relations between
the controlling entities and the controlled entity and between
the controlled entity and entities controlled by the same
controlling entity
The relations between the Bank and the shareholders give rise to clear benefits taking the following
form:
•
More eective approach to the process of amending the legislation that defines the terms and conditions
of supported financing in order to meet the current needs of Czech exporters and export suppliers
during export transactions and the terms and conditions for supporting the export-oriented companies
in strengthening their international competitiveness
• more ecient cooperation with key ministries (such as the Ministry of Industry and Trade, the Ministry
of Foreign Aairs, and the Ministry of Defence) in fulfilling the state’s pro-export policy priorities
• Possibility of obtaining rating at the sovereign level
• More eective use of economic diplomacy tools in the interest of Czech exporters
•
Close coordination of institutions within the system of state support for export and business and
connecting support for innovations and new technologies with the support for business, export and
internationalisation.
Prague, 20 March 2025
Ing. Daniel Krumpolc
Chairman of the Board of Directors
Ing. Petr Vohralík
Vice-Chairman of the Board of Directors
126 4 Report on relations
List of joint stock companies controlled by shareholders holding an equity investment between 40%
and 100%
Ministry of Finance of the Czech Republic
1 IMOB a.s. in liquidation
2 GALILEO REAL, k.s. in liquidation
3 HOLDING KLADNO a.s. in liquidation
ČEPRO, a.s.
Corporate ID: 60193531
Equity investment / Share:
100.00
MERO ČR, a.s.
Corporate ID: 60193468
Equity investment
Share: 100.00
MUFIS a.s.
Corporate ID: 60196696
Equity investment
Share: 49.00
IMOB a.s.
Corporate ID: 60197901
Equity investment
Share: 100.00
ČEZ, a.s.
Corporate ID: 45274649
Equity investment / Share:
69.78
Letiště Praha, a.s.
Corporate ID: 28244532
Equity investment / Share:
100.00
Equity investment / Share: 84.00
Equity investment / Share: 16.00
PRISKO a.s.
Corporate ID: 46355901
Equity investment / Share:
100.00
THERMAL-F, a.s.
Corporate ID: 25401726
Equity investment / Share:
100.00
GALILEO REAL, k.s.
Corporate ID: 26175291
Equity investment / Share:
100.00
Kongresové centrum
Praha, a.s.
Corporate ID: 63080249
Equity investment
Share: 54.35
Výzkumný a zkušební
letecký ústav, a.s.
Corporate ID: 00010669
Equity investment
Share: 100.00
HOLDING KLADNO a.s.
„in liquidation“
Corporate ID: 45144419
Equity investment
Share: 96.85
Česká exportní banka, a.s.
Corporate ID: 63078333
Equity investment / Share: 100.00
Ministry of Finance of the Czech Republic
Corporate ID: 00006947
Exportní garanční a pojišťovací společnost, a.s.
Corporate ID: 45279314