Annual report 2008
Binck Bank
- Consolidated Financial Statements
- Notes to the consolidated financial statements
- Notes to the consolidated balance sheet
- 8. Cash and balances with central banks 9. Banks 10. Financial assets held for trading 11. Financial assets at fair value through profit or loss
- 12. Available-for-sale financial assets 13. Loans and receivables
- 14. Held-to-maturity financial assets 15. Investments in associates
- 16. Intangible assets
- 17. Property, plant and equipment
- 18. Tax
- 19. Deferred tax
- 20. Other assets 21. Prepayments and accrued income 22. Derivative positions held on behalf of clients
- 23. Customer deposits 24. Financial liabilities at amortised cost 25. Provisions
- 26. Other liabilities 27. Accruals and deferred income
- 28. Shareholders' equity
- Notes to the consolidated income statement
- 29. Interest 30. Commission
- 31. Other income 32. Result on investments 33. Impairment losses on financial instruments 34. Employee expenses
- 35. Depreciation and amortisation 36. Other operating expenses 37. Earnings per share (euros)
- 38. Diluted earnings per share (euros) 39. Paid and proposed dividend
- 40. Related party disclosures
- 41. Liabilities not shown on the face of the balance sheet
- 42. Post-balance-sheet events 43. Segment information
- 44. Financial risks
- 45. Fair value financial instruments
- Company Financial Statements
- Notes to the company financial statements
- Notes to the company balance sheet
- C. Cash and balances with central banks d. Due from Banks e. Financial assets held for trading f. Financial assets at fair value through profit and loss
- G. Available-for-sale financial assets h. Loans and receivables i. Held-to-maturity financial assets j. Investments in subsidiaries and associates
- K. Intangible assets
- L. Property, plant and equipment
- M. Current tax assets n. Deferred tax o. Other assets
- P. Prepayments and accrued income q. Customer deposits r. Financial liabilities at amortised cost s. Provisions
- T. Other liabilities u. Accruals and deferred income
- V. Shareholders' equity w. Other information
Notes to the consolidated balance sheet
31 December 2008
31 December 2007
x € 1,000
x € 1,000
16. Intangible assets
378,338
407,014
The movements in 2008 were as follows:
Brand
Customer
Customer
Software
Goodwill
Total
name
deposits
base
Carrying amount as at
31,405
84,095
131,802
6,783
152,929
407,014
1 January 2008
Investments
-
-
-
1,539
-
1,539
Disposals - cost
-
-
-
(1,911)
-
(1,911)
Disposals - cumulative
amortisation
-
-
-
1,911
-
1,911
Amortisation
(6,281)
(8,410)
(13,291)
(1,628)
-
(29,610)
Reclassification
-
-
-
(605)
-
(605)
Carrying amount as at
31 December 2008
25,124
75,685
118,511
6,089
152,929
378,338
Cost
31,405
84,095
131,988
9,118
152,929
409,535
Cumulative amortisation
and impairment
(6,281)
(8,410)
(13,477)
(3,029)
-
(31,197)
Carrying amount as at
31 December 2008
25,124
75,685
118,511
6,089
152,929
378,338
Amortisation period in years
5
10
5 - 10
5
The movements in 2007 were as follows:
Brand
Customer
Customer
Software
Goodwill
Total
name
deposits
base
Carrying amount as at
1 January 2007
-
-
930
1,700
8,881
11,511
Investments
-
-
-
2,601
1,166
3,767
Acquisition of Alex
31,405
84,095
131,058
3,251
142,882
392,691
Amortisation
-
-
(186)
(769)
-
(955)
Carrying amount as at
31 December 2007
31,405
84,095
131,802
6,783
152,929
407,014
Cost
31,405
84,095
131,988
10,233
152,929
410,650
Cumulative amortisation and
impairment
-
-
(186)
(3,450)
-
(3,636)
Carrying amount as at
31 December 2007
31,405
84,095
131,802
6,783
152,929
407,014
Amortisation period in years
5
10
5 - 10
5
The acquisition of Alex Beleggersbank was completed on 31 December 2007. The amortisation of the separately
identified intangible assets relating to this transaction amounted to nil in 2007.
Software includes purchased software and proprietary software developed by Syntel, which is sold to its clients,
as well as Syntel-developed software for supporting BinckBank's operations. The hours charged to these
software development projects have been capitalised by BinckBank as software at an average hourly rate
reflecting only direct staff costs.
Goodwill relates to the excess of the purchase price paid to acquire the activities of Alex Beleggersbank in 2007
and Syntel in 2006 over the fair value of the identifiable assets and liabilities. The purchase price for Syntel
comprises an initial price and an earn-out price depending on the gross margin generated by Syntel in 2007 and
2008. Syntel's performance in 2007 and expected performance in 2008 in fact resulted in the recognition of the
maximum earn-out price of € 1,166,000 in 2007. Payment of the additional purchase price occurred in 2008 (see
note 26).
The reclassification relates to a revised classification of assets recognised on initial recognition of Alex and
involves the categories of intangible assets, property, plant and equipment and prepayments and accrued
income.
Impairment testing of intangible assets (excluding goodwill)
The various categories of intangible assets, other than goodwill, are tested annually or more frequently if events
or changes in circumstances indicate that the carrying amount, less applicable annual amortisation, may be
impaired. In the first instance, the test is made on the basis of the indicators mentioned in IAS 36.12, augmented
by indicators compared with the assumptions on which the valuation of the identified immaterial assets was
based at the time of the acquisition.
Intangible asset
Indicator
Brand
Reputational damage to the
Alex brand
Decision to limit the use of
the Alex brand
Core deposits
Less core deposits under the
Alex brand compared to
purchase date
Lower interest margin
compared to purchase date
Customer
Higher attrition rate in Alex
relationships
accounts compared
purchase date
Lower revenues per
acquired account than
forecast at purchase date
Software
Decision to limit the use of
the acquired software
(General)
Higher market rates adverse
effect on the discount rate
If the test reveals an indication of impairment, BinckBank performs a full calculation of the recoverable amount
of the cash-generating units. This calculation is made in the same way as that described for the calculation of the
value in use.
Goodwill impairment test
Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that
the carrying amount may be impaired. The goodwill has been allocated to the following individual cash-
generating units:
2008
2007
x € 1,000
x € 1,000
Retail
142,882
142,882
Syntel
8,014
8,014
Business process
outsourcing (BPO)
2,033
2,033
152,929
152,929
The cash-generating unit Retail
The goodwill allocated to the cash-generating unit Retail concerns the goodwill arising on the acquisition of Alex
Beleggersbank. The activities of Alex Beleggersbank are a close fit with BinckBank's retail activities in the
Netherlands, with their focus on private investors.