Mizuho Bank Europe Annual Report 2018

71 2018 ANNUAL REPORT Compliance and Legal Risk Legal risk arises from uncertainties about the legal enforceability of the obligations of the bank’s customers and counterparties (including those with respect to derivatives), as well as the possibility that legal or regulatory changes may adversely affect the bank’s position. MBE employs two professional legal counsels, four compliance officers and one data protection officer who are trained in timely observing, addressing and repressing legal and compliance risks. A component thereof is the protection of the reputation of the bank. To minimize legal risks the bank uses standard legal agreements for financial products and, when necessary, consults external legal expertise. The scope and nature of compliance within the financial industry have evolved and are no longer limited to rules-based banking regulations. Given the changes in the compliance and regulatory landscape and the resulting long-term impact on banks, MBE has standardized various compliance rules, set up policies and procedures, adopted lean principles and provides training for employees on a regular basis to improve awareness and knowledge. Furthermore, various mitigating measures were taken to minimize the risks due to international sanctions. Appropriation of result Statutory rules concerning appropriation of the result In accordance with article 17 of the Articles of Association the profit for the year will be at the disposal of the shareholder by the General Meeting of Shareholders. Profit can only be distributed to the shareholder for as far as the total shareholder’s equity exceeds the issued and paid-up share capital and non-distributable reserves. Appropriation of result for the financial year 2017 The appropriation of the net result of 2017 is in accordance with the shareholder’s decision of 22 March 2018 included in the other reserves. Proposed appropriation of result for the financial year 2018 The net profit for the year ended 31 December 2018 amounted to € 21,380,000 and is awaiting the discussion of the General Meeting of Shareholders. The Management Board proposes to add the net profit for the year to the other reserves. This proposal has not been recorded in the financial statements. The proposal of the profit distribution is as follows: (in €’000) 2018 2017 Available profit 21,380 16,666 Less: dividend - - Transfer to other reserves 21,380 16,666 Amsterdam, 19 March 2019 Supervisory Board of Directors: Management Board: Hiroshi Nagamine Kenji Saito Peter de Ruijter Eiji Katayama Kevin O’Rourke Jens Pöhland Gabriella Kindert