annual report - Белагропромбанк

2012
ANNUAL REPORT
ANNUAL REPORT
Content
Letter to shareholders, customers and partners of Belagroprombank....69
Jakub Kolas. O my land, my land so lovely… ............71
Highlights 2012 ..........................................................73
Jakub Kolas. The stream ...................................75
Market share..............................................................77
Jakub Kolas. Sunrise .......................................79
Resource potential........................................................81
Jakub Kolas. My native nook ...............................83
Retail banking.............................................................85
Yanka Kupala. Sping .......................................89
Corporate banking........................................................91
Yanka Kupala. Maple and hazel ...........................95
International cooperation................................................97
Yanka Kupala. The reaper .............................. ..101
Credit ratings of JSC Belagroprombank.................................103
Yanka Kupala. Heritage ..................................105
Correspondent banks.....................................................107
Maksim Bogdanovich. In Winter .........................111
Financial statements in accordance with the national standards.
Auditors’ report..........................................................113
Maksim Bogdanovich.
Above the white down of the cherries .................... 117
Balance sheet as of January 1, 2013.....................................119
Maksim Bogdanovich. Rondeau..........................121
Profit&loss statement 2012..............................................123
Maksim Bogdanovich. Weavers from Slutsk ............125
Outlook for 2013.........................................................127
ANNUAL REPORT
Dear shareholders, customers and partners
of Belagroprombank
The year 2012 was the Year of the Book in Belarus. This provided the
basis for the concept of the annual report of JSC Belagroprombank. Our
“Volume of Poems” will familiarize you with Belagroprombank’s main
achievements for the year 2012 and recall in memory classic works
of Belarusian literature.
In 2012 JSC Belagroprombank demonstrated good performance in all
key segments of business. In our opinion, this was achieved through correct
priorities for solution of tasks defined in the bank’s current development
strategy, professional teamwork of our staff members and continued constructive relationships with our customers and business partners.
Belagroprombank worked hard and used best endeavours to reach its
financial targets and strengthen its position in core business fields.
We are grateful to our employees for their professionalism, dedication
and contribution to our performance. We thank our customers for their
continued trust, loyalty and desire to move forward together which are crucial factors to our success.
69
ANNUAL REPORT
O my land, my land so lovely…
Poem “Symon The Musician”
O my land, my land so lovely,
Well-loved corner of my race!
What in God’s world is more beloved
Than these banks, with brightness graced,
Where the rivers glitter silver,
Where the woods hum murmuring song,
Where buckwheat breathes honey, quivering
Cornfields murmur on and on;
Than the monuments unending
Of the marshes, of the pools,
Where wide space its thoughts is blending
Under freshets gushing cool,
Where the osiers weep in autumn,
Where in spring bright meadows blow,
Where birch-trees in a path long-trodden
Like a lovely highway grow?
1911-1925
Translated by Vera Rich
71
ANNUAL REPORT
Highlights 2012
JANUARY
According to the resolution of
the Council of Ministers of the Republic of Belarus as of 19.01.2012
No.55, JSC Belagroprombank became
the prize winner of the Government
for achievements in the field of
quality.
MAY
Belagroprombank jointly with
Belarus Football Federation held a
large-scale campaign titled “Happy
Soccer Ball” during which 18 000
first grade students from all rural
area schools of the country became
happy owners of soccer balls from
Belagroprombank.
JUNE
Belagroprombank and SIMEST SpA
signed a cooperation agreement and
agreed to assist Belarusian and Italian enterprises, business associations
and financial institutions to approach
each other aiming to implement investment projects with participation
of the Italian enterprises in the Republic of Belarus.
JUNE
JSC Belagroprombank was once
again placed on the list of Top 1000
World Banks and 25 largest banks of
Central and Eastern Europe produced
annually by the Banker magazine.
The Bank adopted 3D-Secure
technology offering enhanced security for online purchasing using credit
and debit cards.
OCTOBER
Belarus' first contactless transaction using VISA payWave technology
was performed at the payment terminal of Belagroprombank in one of
Minsk cafes.
NOVEMBER
JSC Belagroprombank was honoured by Commerzbank AG with an
International STP Excellence Award
for achieving the highest quality of
formatting payments channeled
through Belagroprombank’s correspondent accounts with the German
bank.
73
ANNUAL REPORT
The stream
Through the alders, the shrubs,
There, where nightingales sing,
Murmurs and softly sobs.
Silvery-toned, the spring.
Willows, like mothers, their heads
Over the stream bow down.
Bushes into it glance,
See their luxurious crown.
Round about it there stand
Rushes, reeds, and the sedge.
Flowering meadows as well
Spread from far to its edge.
Sometimes at night the stars,
Seen in its waters, gleam.
Storm-clouds which often pass
Also glance in the stream.
Grasses above it bend,
Loosen their frilly locks,
While the spoiled favourite still
Lightly with laughter rocks.
Here to the forest it runs,
Here round a mound it swings.
Sometimes it angrily drums,
Sometimes it kindly sings.
All may enjoy its song,
Ceaseless, and sweet to the breast.
Lulled by its peaceful refrain,
You as well will find rest.
1909
Translated by Walter May
75
ANNUAL REPORT
Market share
In 2012 JSC Belagroprombank maintained its position as one of the leaders
in the national financial market, contributing significantly to the performance
of the banking sector of the Republic of Belarus, and continued to expand its
presence in key segments of the national financial market.
At the end of 2012 Belagroprombank retained its second place among other
Belarusian banks in terms of authorized fund and equity, with a 22,1% and
18,5% market share respectively.
In the course of 2012 corporate and retail customer funds attracted by the
bank grew more than 1,5-fold. As of January 1, 2013 Belagroprombank has more
than 1/4 share in corporate deposits in local currency (leading position among
other Belarusian banks), and almost 15% share in retail deposits (second place)
accumulated by the banking system of the Republic of Belarus. Belagroprombank has almost 1/5 share in the total resource base of the national banking
sector.
During 2012 Belagroprombank was a noticeable player in the loan market.
At the year-end 2012 Belagroprombank’s had a 22,1% share in gross lending to
economy. Belagroprombank ranks second in terms of corporate loan portfolio,
and is the leader by loans in local currency. Belagroprombank enters top three
leaders in the national banking system and retail lending.
Market share of JSC Belagroprombank in the banking sector
of the Republic of Belarus, %
27,0
22,1
18,5
19,0
16,9
14,7
7,7
Authorized
fund
Equity
Resource
base
Corporate
deposits
Retail
deposits
Corporate
loans
Retail loans
(excluding
preferential
loans )
77
ANNUAL REPORT
Sunrise
In the east the sky is playing,
Gleaming colours drops,
Sprinkles gold upon the forest
And upon the copse.
Slightly trembles and spills over
Crimson in the east –
That is heaven smiling, greeting
Man and bird and beast.
Answering laughter, happy laughter,
Runs through rocks and rills.
Time of dawn – the time benevolent...
Stars fade o'er the hills.
Wider, wider then the dawning
Opens up her wings,
Like a fire, a spring is spouting
Where the horizon swings.
Sheaves of rays in sumptuous splendour
Sow red gleams o'erhead –
That is heaven spreading mantles
For the sun to tread.
O'er the fields the dark disperses,
O'er the hollows low;
In the forest the mist-cloud rises,
Meadows bathe in dew.
And the fiery filaments flying
Weave a red silk gown –
That’s the clouds the sunrise greeting,
Making day a crown.
How delicious the rye is smelling!
What a peaceful time!
Ah, how beautiful, how glorious,
Decorous and fine!
Heaven has gathered here together
Hues of wondrous flowers…
Where’s the response to such rich beauty
In this world of ours?
1908
Translated by Walter May
79
ANNUAL REPORT
Resource potential
Thanks to active participation in core segments of the financial market
and build-up of own financial resources, the bank grew its resource potential
by BYR 10 trillion, or 1,2-fold, ending the year at BYR 61 trillion. In terms of
resource potential Belagroprombank ranks second among its banking peers,
with a 1/5 share of the domestic banking sector’s resource base.
Profitable performance and capitalization of the revenue in the bank’s
funds in the accounting period ensured the growth of the Belagroprombank’s equity by BYR 0,5 trillion (1,1-fold increase).
The growth of the bank’s resource base was mainly contributed by ramp
up of funds on deposit and current accounts of retail and corporate customers (by BYR 9,2 trillion).
More than 80% of the total volume of funds accumulated on customer
accounts were attracted on a fixed-term basis, which gives the necessary
stability to Belagroprombank’s resource potential and allows active use of
this financial source for long-term lending to the real sector of economy.
Foreign borrowings transactions are actively used to build up Belagroprombank’s resource potential. As of January 1, 2013 the volume of borrowings raised by Belagroprombank from foreign banks totalled BYR 6,5 trillion.
Growth of resource base enabled the bank to provide additional financing to the Belarusian economy in the amount of BYR 9,5 trillion.
Dynamics of resource
base, BYR bln.
60 965
Resource base structure of
JSC Belagroprombank as
of Jabuary 1, 2013
50 949
Other liabilities,
Due to resident
banks, 8,5%
7,3%
31354
Due to nonresident banks
20 240
10,6%
15 570
8213
Equity,
01.01.2013
01.01.2012
01.01.2011
01.01.2010
01.01.2009
01.01.2008
14,5%
Customer accounts
and funds raised
through issue
of securiries,
59,1%
81
ANNUAL REPORT
My native nook
Poem “The New Land”
My native nook, dear land that bred me!..
I have no power to forget thee!
Often when, from roadway weary,
From my life’s springtime, poor and dreary,
To thee on wings of thought I hasten,
And my poor soul finds rest and grace then.
And now, again, before me rises
That nook in all its lovelinesses,
The curving stream-bed of the freshet,
The spruce tree and the pine that ever
Above the stream embrace together,
Like young folk in their love’s devotion.
The last eve before separation.
I see the woods around the homestead,
Where merrily girls in the gloaming
Sang their songs in a lovely chorus,
Late from work passing by the forest.
Notes of their fluent songs, far-trilling,
Once again by the woods were mirrored,
And with them all the hills resounded.
Forth in free billows, gladness bounded,
And firs and spruces sempiternal.
Beneath those song-notes, young and vernal,
Stood silent in some meditation,
And in their quiet murmuration
Were born the prayers of evening whispered,
Aloft, high into holy distance.
1911-1923
Translated by Vera Rich
83
ANNUAL REPORT
Retail banking
Last year Belagroprombank continued its commitment to modernizing
and extending the product range for private customers, as well as improving
the quality of retail customer service, which had a favourable impact on performance in the retail banking sector.
In 2012 retail client base of JSC Belagroprombank increased by more
than 300 000 to nearly 1,7 million.
In the accounting year balances on on-demand accounts with JSC Belagroprombank grew 2,3-fold (by 1,5 times exceeding the growth rate of its
banking peers) and totalled more than BYR 1 trillion.
Retail deposits portfolio increased by BYR 839 bln., or 1,7 fold (in foreign
currency USD 361 mln., or 1,6-fold). In 2012 Belagroprombank’s share in retail time deposits grew from 15% to 15,9%.
In 2012 funds attracted by Belagroprombank from individuals by means
of own bonds more than doubled (up to BYR 945 bln.). Belagroprombank
boasts nearly a 90% share in the total grow rate of funds attracted from individuals by means of bonds issued by Belarusian banks.
Overall, in 2012 retail customer funds contributed to a BYR 5,2 trillion
Dynamics of retail customer funds, BYR bln.
12 587
7 348
2 858
2 128
1 509
1 171
01.01.2008 01.01.2009 01.01.2010 01.01.2011
01.01.2012
01.01.2013
85
ANNUAL REPORT
increase of the bank’s resource potential. Belagroprombank’s share in the
total volume of funds attracted from retail customers by the banking sector
grew from 14,2 to 15,3%.
Notwithstanding the reduced demand for retail lending products offered
by Belarusian banks, which was in the first place due to high interest rates
in the respective market, JSC Belagroprombank improved consumer characteristics of its lending products. This allowed the bank to maintain its stable
rank in the top three players in retail lending.
Belagroprombank is actively developing card technologies aiming to
provide all-inclusive retail banking services and loans and savings services.
The bank’s customers are offered a full range of card products of Visa and
MasterCard international payment systems and BelCard national payment
system. In total, as at the year-end 2012 the number of Belagroprombankissued cards in circulation reached 1,2 million.
For its cardholders’ convenience, JSC Belagroprombank carries out consistent activities to extend its payment infrastructure across the territory
of the Republic of Belarus. As of January 1, 2013 Belagroprombank’s network
of terminal equipment supporting transactions using credit and debit cards
(ATMs, information kiosks, payment terminals) numbered more than 11,3
thousand. In the accounting year the bank implemented a set of measures
Dynamics of key indicators of card business performance
directed toward service improvement and enhancing the possibilities to enable customers to perform unassisted online financial transactions using
Internet banking. As a result, Internet banking interface was adapted for a
better customers’ intuitive perception thereof, while system functionality
allows customers to pay for goods and services online without visiting the
bank branch, as well as to monitor and manage their bank accounts.
Dynamics of key indicators of card business performance
Number of the bank’s infrustructure units accepting
bank cards payments
11 321
7 143
2 064
1 397
4 797
1 808
01.01.2008 01.01.2009 01.01.2010
01.01.2011 01.01.2012 01.01.2013
Belagropombank – issued cards in curculation, thsd
1 235
1 213
1 030
344
591
854
01.01.2008 01.01.2009 01.01.2010
86
01.01.2011
01.01.2012
01.01.2013
87
ANNUAL REPORT
Spring
Gone the sharp cold and the frost and the blizzard,
Never a soul will feel frozen henceforth,
With the warm sunshine, with foliage brilliant,
Spring has returned and rewarded the earth.
Rivers which yesterday lay soundly sleeping,
Now fly a-streaming, their wavelets a-dance;
Fishes go flashing and splashing and leaping,
Up at kind skies from the water they glance.
Dark dreaming forests which slept through the winter,
Now their glad chorus have struck up again;
Leaves gently rustle and birds are a-twitter,
Woodpeckers hammer, the nightingale’s plain.
Fields are bedizened in fresh luscious verdure,
Cattle in pastures are browsing away;
Round them there goes with his reed-flute the herder,
Rambles and pipes, for his spirits are gay.
Play, play, little flute! Play gay, so it pleases!
Pipe in the springtime and joy to me bring;
Tuned to the forests, the birds and the breezes,
Pipe me of happiness, sing me of spring!
1906
Translated by Walter May
89
ANNUAL REPORT
Corporate banking
In 2012 Belagroprombank continued to strengthen its position in corporate customer service. A wide range of financial services, a custom-tailored approach, a flexible pricing and interest rate policy and the bank’s
highly professional stuff enabled the bank to not only meet the demands of
its existing corporate customers and raise their loyalty, but also to gain trust
of new enterprises.
Over the past year Belagroprombank's customer base increased by 2,6
thousand customers and totalled over 44 thousand at the year-end 2012.
The bank remains committed to improving technological aspects of corporate customer service, including through use of remote service systems.
Over the accounting year the number of corporate users of Client-Bank and
Internet-Client services provided by Belagroprombank increased by nearly
20% and reached 13,6 thousand by January 1, 2013.
Corporate clients base
44 103
41 549
37 070
33 299
27 069
29 915
01.01.2008 01.01.2009 01.01.2010
01.01.2011
01.01.2012
01.01.2013
91
ANNUAL REPORT
Dynamics of corporate deposits, BYR bln.
8 773
7 208
2 719
1 159
1 096
833
01.01.2008 01.01.2009 01.01.2010
01.01.2011
01.01.2012
01.01.2013
By closely cooperating with the largest domestic capital-intensive businesses and actively raising temporary free funds from its corporate customers, Belagroprombank managed to increase its corporate deposit
portfolio by more than 20%. As of January 1, 2013 the bank’s corporate deposit portfolio totalled BYR 8,8 trillion, boasting a 20% share in the banking
sector’s portfolio of corporate deposits in local currency.
Lending to the real sector of the national economy is one of the most
important tasks of Belagroprombank, giving priority to its traditional corporate customers – agroindustrial entities. In 2012 the bank’s corporate
loan portfolio grew by 25,8% to BYR 45,4 trillion. Belagroprombank’s market
share in the banking sector’s portfolio of local currency loans exceeded 40%.
As a government agent on financing state programs, the bank provided
loans to the total amount of BYR 12,1 trillion in 2012. Lending was mainly
earmarked for construction and reconstruction of commercial dairy farms
and other production facilities at agroindustrial enterprises, housing construction in rural area, financing of programs for innovative development
of certain fields of the national economy, as well as seasonal activities of
the agricultural sector (sowing campaigns, harvesting and procurement of
agricultural produce).
Dynamics of corporate loans, BYR bln.
45 375
36 080
24 399
17 704
12 496
6 716
01.01.2008 01.01.2009 01.01.2010
92
01.01.2011
01.01.2012
01.01.2013
93
ANNUAL REPORT
Maple and hazel
With spring’s song of swans returning,
And casting off winter’s spell,
The maple to hazel is murmuring
On the banks of the mournful dell.
The greening leaves are all praising
The heavens in mutual tongue:
And the morning in dew is laving,
And revels in noonday sun.
To the setting orb obedient,
Which bids mother earth goodbye;
Mysterious in night’s dark medium,
The moon and stars peep on high.
There’s sound of mermaids’ laughter,
The flapping of night-bird’s wings,
The wind swaying drunkenly after;
The splashing of crystal springs.
A wonderful music arises
In tales sleepy rushes tell…
The maple the hazel caresses,
And casts off the winter’s spell.
1910
Translated by Walter May
95
ANNUAL REPORT
International cooperation
Over a number of years, JSC Belagroprombank has been one of the leaders
in terms of attracting foreign facilities into the country's economy, which
evidences the high rating of the bank’s performance and its buona fide reputation among foreign partners
At present, JSC Belagroprombank actively cooperates with 87 foreign financial institutions from 24 countries around the world. For more complete
satisfaction of customers in target financing of their foreign trade projects,
in 2012 Belagroprombank established cooperation with banks such as
Zurcher Kantonalbank (Switzerland), JSC^“SMP Bank” (Russian Federation),
JSC “Alfa Bank” (Russian Federation), Ceskoslovenska' obchodna' banka,
a.s. (Slovakia). At the year-end 2012 Belagroprombank entered into cooperation with forfeiting companies DF Deutsche Forfait AG (Czech Republic)
and Swiss Forfait s.r.o. (Czech Republic) and implemented joint projects
worth more than USD 20 mln. over a short period of time.
Dynamics of foreign borrowings (excluding treasury
operations), USD mln.
877
794
727
533
431
290
2007
2008
2009
2010
2011
2012
97
ANNUAL REPORT
In 2012 foreign credit facilities raised by Belagroprombank enabled
it to implement 411 foreign trade contracts initiated by Belarusian enterprises for the total value of USD 794 mln., of which USD 64 mln. longterm financing, USD 647 mln. short-term financing, USD 83 mln.
confirmation of letters of credit without financing.
To improve foreign economic activity services for its corporate customers and minimize their financial risks, Belagroprombank is consistently extending the scope of letter-of-credit payments and other types
of documentary operations. In 2012 Belagroprombank performed 632
documentary operations worth USD 504 mln.
Structure of foreign borrowings raised in 2012
Confirmed letters
of credit without
financing,
Long-term
financing, 8,1%
10,4%
Short-term
financing
81,5%
98
99
ANNUAL REPORT
The reaper
Like a very empress
In her golden crown,
She goes in her garland,
Where the rye hangs down.
From rye-ears her garland –
Witness to her youth –
Like a flower in the garden,
Shines on her in truth.
What a happy bosom
In her rosy vest!
In her hand a sickle,
Toothed, of steel the best.
And the breeze embraces
Her young waist as it flies,
And the sun-rays kiss her,
Neck, and face, and eyes.
Ripened ears are bending,
Low before her bow,
While the pear-trees wonder
By the grass path now.
She, just like an empress,
Happy, bright and gay,
With a song be-girdles
Golden sheaves today.
Boldly ‘neath the sunshine,
And herself a sun,
Here she goes in the reaping
In our land begun.
1911
Translated by Walter May
101
ANNUAL REPORT
Credit ratings of JSC Belagroprombank
The bank’s financial position is rated by the international rating agencies Standard & Poor's and Moody’s Investors Service.
Ratings of Belagroprombank as of January 1, 2013:
Standard & Poor’s
Long-term foreign
and local currency rating
B
Short-term foreign
and local currency rating
C
Outlook
Stable
Moody’s Investors Service
Foreign currency long-term rating
Caa1
Foreign currency short-term rating
Not Prime
Local currency long-term rating
B3
Local currency short-term rating
Not Prime
Bank financial strength rating
Outlook
E+
Negative
103
ANNUAL REPORT
Heritage
From forebears’ ages, long since gone,
A heritage has come to me,
Among strange folk, among my own,
Me it caresses, motherly.
Of it to me dream-fables sing
Of first thaw-patches, vernally,
The woods’ September murmuring.
An oak-tree lone, half burned away.
Memories of it, like storks aclack
Upon the lime have woken me,
Of a mossed fence, old, gone to wrack,
Fallen near the village, brokenly;
The dreary bleat of lambs that pours
Out in the pasture, endlessly,
The caw of the assembled crows,
On the graves in the cemetery.
And through black night and through white day
I keep, my watch unceasingly,
Lest this my treasure goes astray,
Lest by drones it should eaten be.
I bear it in my living soul
Like torch-flame ever bright for me,
That through deaf darkness to my goal,
Midst vandals it may lighten me.
With it lives my thought-family.
Bringing dreams of sincerity…
And its name, all-in-all must be
My native land, my heritage.
1918
Translated by Vera Rich
105
ANNUAL REPORT
Correspondent banks
Austria
:
UniCredit Bank Austria AG, Vienna
Raiffeisen Bank International AG, Vienna
VTB Bank (Austria) AG, Vienna
Raiffeisenlandesbank Oberosterreich AG,
Linz
Belgium
KBC Bank NV, Brussels
BNP Paribas Fortis NV/SA, Brussels
Bulgaria
Bulgarian Development Bank AD, Sofia
Raiffeisenbank (Bulgaria) EAD, Sofia
WGZ Bank AG, Dusseldorf
Landesbank Berlin AG, Berlin
Landesbank BadenWuerttemberg,
Stuttgart
Landesbank HessenThueringen
Girozentrale, Frankfurt am Main
Kreissparkasse EsslingenNuertingen,
Esslingen
VTB Bank (Deutschland) AG,
Frankfurt am Main
KBC Bank Deutschland AG, Bremen
Bayerische Landesbank, Nuernberg
Georgia
АО «Инвестбанк», Tbilisi
Great Britain
Denmark
VTB Capital plc, London
FBN Bank (UK) Ltd, London
The Royal Bank of Scotland plc, London
Danske Bank A/S, Copenhagen
Sydbank A/S, Copenhagen
Hungary
Israel
Hungarian ExportImport Bank Plc.,
Budapest
K&H Bank Zrt., Budapest
OTP Bank Plc., Budapest
UniCredit Bank Hungary Zrt., Budapest
Citibank Europe plc., Hungarian branch
office, Budapest
Bank Leumi leIsrael B.M., Tel Aviv
Bank Hapoalim B.M., Tel Aviv
Germany
AKA AusfuhrkreditGesellschaft mbH,
Frankfurt am Main
Deutsche Bank AG, Frankfurt am Main
DZ Bank AG, Frankfurt am Main
BHFBANK Aktiengesellschaft,
Frankfurt am Main
Commerzbank AG, Frankfurt am Main
UniСredit Bank AG, Munich
Italy
Unione di Banche Italiane Scpa, Bergamo
Banca Monte dei Paschi di Siena S.p.A.,
Siena
Intesa Sanpaolo S.p.A., Turin
Banca Popolare di Vicenza Scpa, Vicenza
UniCredit S.p.A., Milan
Banco Popolare Soc. Coop., Verona
Banca Antonveneta S.p.A., Padova
Kazakhstan
JSC BTA Bank, Almaty
JSC Kazkommertsbank, Almaty
107
ANNUAL REPORT
Latvia
АО “Baltic International Bank”, Riga
AO “Trasta Komercbanka”, Riga
АО “Rietumu Banka”, Riga
АО “UniCredit Bank”, Riga
АО “Swedbank”, Riga
АО “Baltikums Bank”, Riga
Lithuania
AB DNB Bankas, Vilnius
AB SEB Bankas, Vilnius
“Swedbank”, АВ, Vilnius
AS “UniCredit Bank” Lithuania Branch,
Vilnius
Netherlands
ABN Amro Bank N.V., Amsterdam
Rabobank Nederland, Utrecht
Credit Europe Bank N.V., Amsterdam
Norway
DNB Bank ASA, Oslo
Poland
BRE Bank SA, Warsaw
Bank Pekao
. SA, Warsaw
Bank BGZ SA, Warsaw
Bank Gospodarstwa Krajowego,
Warsaw
/
Bank Zachodni WBK SA, Wrоclaw
Raiffeisen Bank Polska SA, Warsaw
Nordea Bank Polska SA, Gdynia
PBP Bank SA, Warsaw
Portugal
Banco Finantia SA, Lisbon
Republic of Belarus
CJSC “Absolutbank”, Minsk
JS RDB-Bank, Minsk
108
JSC “MTBank”, Minsk
PJSC “Trustbank”, Minsk
CJSC VTB Bank (Belarus), Minsk
CJSC “Alfa-Bank”, Minsk
JSC “Delta Bank”, Minsk
JSC “InterPayBank”, Minsk
CJSC “BTA Bank”, Minsk
USC BelSwissBank, Minsk
JSC “Alfa-Bank Finance”, Minsk
JSC “Idea Bank”, Minsk
CJSC “Bank BBSB”, Minsk
JSC “Zepter Bank”, Minsk
JSC “Eurobank”, Minsk
JSC BPS-Sberbank, Minsk
JSC “JSSB Belarusbank”, Minsk
JSC “Development Bank of the
Republic of Belarus”, Minsk
“Belinvestbank” JSC, Minsk
“Priorbank” JSC, Minsk
Bank BelVEB OJSC, Minsk
OJSC Paritetbank, Minsk
OJSC BNB-Bank, Minsk
JSC Belgazprombank, Minsk
OJSC “Technobank”, Minsk
“Fransabank” OJSC, Minsk
“Bank Moscow-Minsk” JSC, Minsk
JSC “Eurotorginvestbank”, Minsk
OJSC HCBank, Minsk
CJSC “BIT-Bank”, Minsk
JSC “URALSIB”, Moscow
JSC “FRB”, Moscow
JSC Bank of Khanty-Mansiysk,
Khanty-Mansiysk
JSCB “Sviaz-Bank”, Moscow
“NOMOS-BANK” (JSC), Moscow
JSC “OTP Bank”, Moscow
JSC “Bank of Moscow”, Moscow
JSC “SMP Bank”, Moscow
CJSC “ProBank”, Moscow
VTB Bank (France) SA, Paris
Societe Generale, Paris
BNP Paribas SA, Paris
Slovakia
Czech Republic
Eximbankа
SR, Bratislava
^
'
' uverova
' banka, a.s., Bratislava
Vseobecna
Ceskoslovenska obchodna banka, a.s.,
Bratislava
UniCredit Bank Slovakia a.s.,
Bratislava
Ceskoslovenska obchodni banka, a.s.,
Prague
^
UniCredit
Bank
Czech Republic, a.s., Prague
^
' sporitelna, a.s., Prague
^
Ceska
Ceska' exportni banka, a.s., Prague
' banka, a.s., Prague
Evropsko-ruska
^
Komerсni banka, a.s., Prague
Slovenia
Nova Ljubljanska Banka d.d., Ljubljana
UniCredit Banka Slovenija d.d., Ljubljana
USA
Deutsche Bank Trust Company Americas,
New York
Citigroup Inc., New York
Nordea Bank Finland plc., Helsinki
Pohjola Bank plc., Helsinki
Danske Bank plc., Helsinki
France
Switzerland
Credit Suisse AG, Zurich
Banque de Commerce et de Placements
SA, Zurich
BNP Paribas (Suisse) SA, Geneva
Zuercher Kantonalbank, Zurich
Sweden
Tajikistan
JSC “Agroinvestbank”, Dushanbe
Russian Federation
Turkey
JSCB “Investtradebank”, Moscow
CB “IntrustBank” (JSC), Moscow
“Gazprombank” (JSC), Moscow
JSCB “NOVIKOMBANK”, Moscow
CB “EUROTRUST” (CJSC), Moscow
JSC “Russian Agricultural Bank”, Moscow
JSC “ALFA-BANK”, Moscow
JSC “Promsvyazbank”, Moscow
JSC “Sberbank of Russia”, Moscow
JSC VTB Bank, St.Peterburg
Finland
Yapi ve Kredi Bankasi AS, Istanbul
T.C. Ziraat Bankasi AS, Ankara
Ukraine
JSC CB “PRIVATBANK”, Dnepropetrovsk
JSC “The State Export-Import Bank
of Ukraine”, Kiev
JSC VTB Bank (Ukraine), Kiev
JSC “Oschadnybank”, Kiev
SEB AB, Stockholm
Swedbank AB, Stockholm
Svenska Handelsbanken AB, Stockholm
Estonia
AS UniCredit Bank Estonian Branch,
Tallinn
Swedbank AS, Tallinn
Japan
Sumitomo Mitsui Banking Corporation,
Tokyo
109
ANNUAL REPORT
In winter
Hail, frosty evening, ringing, calling!
Hail, crunching crisp, soft spread of snow!
No snowstorm blows, the wind has fallen,
And freely the light sledges go.
Like phantoms, birches whitely hover,
Under the night’s dark-blue quilt,
In the heavens, the stars shiver,
Frozen utterly, frost-chilled.
The moist moon from on high is shedding
A shaft, transparent and aglow,
And with silver cloaks is spreading
The blueing acres of the snow.
With sledges cleave the snow, good horses!
Copper bells, ring out with glad zest!
Forests and fields fly in swift courses,
The blood is boiling in the breast!
1911
Translated by Vera Rich
111
ANNUAL REPORT
Financial statements in accordance
with the national standards.
Auditors’ report
To the shareholders of JSC Belagroprombank
3 Zhukov Ave., Minsk
Republic of Belarus, 220036
JSC Belagroprombank is registered in the National Bank
of the Republic of Belarus on 03.09.1991,
registration number 20.
Reference 1103-01
Auditors’ report on the annual financial statements
of JSC Belagroprombank for the year 2012
We have audited the attached annual financial statements of the JointStock Company Belagroprombank (hereinafter referred to as “The Bank”),
comprising the balance sheet as of January 1, 2013, the profit and loss statement, statements of changes in funds and cash flow statements for the year
2012 and explanatory notes.
Management’s Responsibility for the Annual Financial Statements
The Bank’s management is responsible for the preparation and fair presentation of the annual financial statements in accordance with the legislation
of the Republic of Belarus, as well as for an internal control system which, in
its opinion, is relevant to the preparation of annual financial statements that
are free from material misstatements, whether due to error or fraud.
Auditors’ Responsibility
Our responsibility is to express an opinion on these annual financial
statements based on our audit, and to obtain evidence on the Bank’s compliance with secure functioning standards.
We conducted our audit in accordance with the requirements of the legislation of the Republic of Belarus and International Standards on Auditing
provided that they are not in conflict with these requirements. Those standards and requirements require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance whether
these annual financial statements are free from any material misstatement.
113
ANNUAL REPORT
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the annual financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the annual financial
statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the preparation and fair
presentation of the annual financial statements of the Bank 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 Bank’s
internal control. An audit also includes evaluating the appropriateness of
the accounting policy used and the reasonableness of accounting estimates
made by the Bank’s management, as well as evaluating the overall presentation of the annual financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide our audit opinion.
Audit opinion
In our opinion, the annual financial statements present fairly, in all material respects the financial position of the Joint-Stock Company Belagroprombank as of January 1, 2013, and its financial and economic performance
and cash flows for the year 2012 in accordance with the requirements of the
legislation of the Republic of Belarus regarding preparation of the annual financial statements.
approved by the resolution of the Board of the National Bank of the Republic
of Belarus as of October 31, 2006 № 172 (as amended).
During the audit we found out that the Bank violated the secure functioning standards set by the National Bank of the Republic of Belarus for
banks, stated on pages 55 and 72 of the explanatory notes. Other facts constituting non-compliance with secure functioning standards in 2012, as set
by the National Bank of the Republic of Belarus, were not found.
Vereshchagina Irina Vladimirovna
Director
Aboisheva Anna Mikhailovna
Head of Audit Group
March 15, 2013
Minsk, Republic of Belarus
Limited Liability Company KPMG
Certificate of state registration issued by
Minsk City Executive Committee pursuant to
the decision dated 10.02.2011, UNP
19143410
Opinion regarding other legislative requirements
Our responsibility is also to assess the calculation methods and authenticity of information contained in the forms of prudential accounting, namely
2801 "Calculation of capital adequacy", 2807 "Report on special provisions
against potential losses on off-balance sheet assets and operations", 2809
"Liquidity calculation", prepared by the Bank and presented as of January 1,
2013. The Bank’s management is responsible for the preparation of these
forms of prudential accounting. Our responsibility is to express an opinion
on authenticity of these forms of prudential accounting.
In our opinion, the abovementioned forms of prudential accounting as of
January 1, 2013 are drawn up by the Joint-Stock Company Belagroprombank
accurately in all material respects in accordance with the Instructions on
preparation and presentation of the prudential accounting by banks and nonbank financial institutions to the National Bank of the Republic of Belarus,
114
115
ANNUAL REPORT
***
Above the white down of the cherries,
Like blue fire, soaring high,
Cleaving, weaving pathways, lightly
Darts – a blue-winged butterfly.
All around the air is trembling
With the sun in golden strings,
And almost too quiet for hearing
It strums them with trembling wings.
And in waves the song is pouring,
Gentle gleaming paean to spring.
Is it not my heart that carols?
Is it not my heart that sings?
Is it not a bell-voiced zephyr,
Whispering where the thin shoots grow?
Or perhaps the tall dry rushes
By the river rustle so?
Not for us to understand it.
Nor discover it, nor learn:
The notes flying, quivering, ringing,
Let me not to thinking turn.
Song bursts forth and gushes into
The great world, unfettered, free.
But who is it that will hear it?
The poet alone, maybe.
1910
Translated by Vera Rich
117
ANNUAL REPORT
Balance sheet
(BYR, million)
balance sheet as of January 1, 2013
№
п/п
Description
1 ASSETS
2 Cash assets
Index
Explanatory
notes
2012
1 007 959,0
699 768,3
4 409,5
3 649,5
2011
1101
9,51
3 Precious metals and precious stones
4 Due from the National Bank
1102
10
1103
11,51
4 385 454,3
7 344 002,4
5 Due from banks
6 Securities
1104
12,51
902 741,2
852 117,8
1105
13,50,51
4 947 884,7
2 382 500,0
7 Loans to customers
8 Derivative financial assets
1106
14,50,51
1107
15,51
793,7
98,7
9 Long-term financial investments
10 Fixed assets and intengible assets
1108
16,51
699 816,7
418 956,7
1109
17,50
1 749 961,7
1 105 426,4
11 Assets intended for sale
12 Other assets
1110
18
1111
19,51
11
8
14 LIABILITIES
15 Due to the National Bank
1201
20,51
1 198 044,2
2 303 652,3
16 Due to banks
1202
21,51
10 587 711,5
9 112 027,7
17 Due to customers
1203
22,50,51
18 Securities issued by the bank
19 Derivative financial liabilities
1204
23,50,51
7 455 310,5
8 841 508,6
1205
24,51
–
7 014,2
20 Other liabilities
1206
25,51
603 627,0
328 167,8
21 TOTAL liabilities
120
13 TOTAL assets
44 265 236,1 36 243 746,2
–
1 909,2
319 775,2
144 697,3
58 284 032,1 49 196 872,5
28 960 528,3 20 282 325,8
48 805 221,5 40 874 696,4
22 CAPITAL
23 Authorized fund
1211
24 Share premium
1212
25 Reserve fund
1213
26 Balance sheet items re-evaluation fund
6 603 635,0
6 603 635,0
–
–
27
330 189,9
250 189,9
1214
28
1 174 482,2
759 667,4
27 Retained profit
1215
29
1 370 503,5
708 683,8
28 TOTAL capital
121
9 478 810,6
8 322 176,1
29 TOTAL liabilities and capital
12
6,26
8
58 284 032,1 49 196 872,5
119
ANNUAL REPORT
Rondeau
Design of stars so fair and fine
In the dark firmament is blazing;
Waters of pools and marshes shine
Mirroring in their depths this blazon.
A mist into far space doth twine,
A chair of frogs chants hymns of praising
The beauty in the puddles shrined.
And in them burns a fair, amazing
Design.
Frogs curse the sun that hides from gazing
The puddles' stars by day. The pine
Woods hear, the field hears the croaked phrasing;
But frog-songs o'er the mountain spine
Rise not, where once some hand was tracing
Design.
1911
Translated by Vera Rich
121
ANNUAL REPORT
Joint-stock company Belagroprombank
(BYR, million)
Profit&loss statement 2012
Index
Explanatory
notes
1 Interest income
2011
31,50
10 509 366,3 5 722 226,6
2 Interest expenses
2012
31,50
7 615 876,9 3 865 787,9
3 Net interest income
201
31
2 893 489,4 1 856 438,7
4 Commission income
2021
32,50
811 953,6
457 509,6
5 Commission expenses
2022
32,50
165 277,8
87 908,4
6 Net commission income
202
32
646 675,8
369 601,2
7 Net income from transactions
with precious metals
and precious stones
203
33
1 075,0
1 853,5
8 Net income from transactions
with securities
204
34,50
173,1
1 657,8
9 Net income from foreign currency
transactions
205
35,50
231 237,6
217 747,2
10 Net income from transactions
with derivative financial
instruments
206
36
(73 975,1) (231 165,9)
11 Net transfers to reserves
207
37,50
1 392 104,0 1 178 623,6
12 Other income
208
38,50
466 356,8
160 963,8
13 Operational expenses
209
39,50
1 291 477,1
702 965,0
14 Other expenses
210
40,50
188 364,2
92 084,8
15 Profit (loss) before tax
211
41
1 293 087,3
403 422,9
16 Income tax
17 PROFIT(LOSS)
212
42
232 280,1
100 575,4
2
5,30
1 060 807,2
302 847,5
№
п/п
Description
2012
2011
18 Earnings per share in BYR
19 Basic earnings per ordinary share
20 Deluted earnings per ordinary share
22
43
321
118
23
44
–
–
123
ANNUAL REPORT
Weavers from Slutsk*
From native home, from native tillage,
To the Big House, for beauty’s sake,
Luckless girls taken from their village,
Girdles of woven gold to make.
Long hours of labour they endeavour,
Forgetful of their girlish dreams,
Toiling at the broad weaving ever.
Where the Persian pattern gleams.
Outside the walls is smiling tillage,
The sky shines fair beyond the pane,
And thoughts go wandering, willy-nilly,
There where the spring’s in flower again.
There by the rye, in the far distance,
The cornflowers gleam with azure still,
And waves of chilly silver glisten,
Where rivers gush between the hills;
Dark frowns the forest’s jagged verdure,
And hands, forgetful at the loom,
Neglecting the designs of Persia,
Weave in the native cornflower bloom.
1912
Translated by Vera Rich
* Slutsk – town in Belarus.
125
ANNUAL REPORT
Outlook for 2013
In the light of stability achieved in the domestic financial and currency markets and the focus of the national economy on steady
growth, Belagroprombank plans to maintain the dynamics of its key
financials, strengthen its position across core segments of the banking
services market and continue enhancing economic effectiveness of its
performance.
Retail customer service will be further developed through gradual upgrade of retail product range, retail technology modernization and business processes optimization aimed at reducing the overall time limit for
provision of services, as well as active promotion of card products.
To enhance the efficiency of interaction with corporate customers and
minimize the costs of managing their cash flow, as well as create
favourable conditions for businesses to efficiently manage their own cash
assets, the bank plans to proceed with active implementation of remote
service systems. Taking into account the state of market and customer
needs, the bank will carry out activities aimed at adjusting the conditions
for providing services, as well as offering the economic entities the optimal
ways of interaction with the bank that suit the peculiarities of their business. The bank intends to continue activities aimed at creating favourable
environment to enable target corporate customers to develop their core
line of business. In particular, we expect to finalize the creation of the
technical platform to provide full-fledged merchant acquiring service for
retail and service businesses, define further steps to promote the development of agroecotourism, and elaborate and launch the implementation
of the program of its participation in the development of the national motorway service.
Belagroprombank’s 2013 objectives also include further development
of cooperation with foreign financial institutions focusing on raising foreign borrowings into the domestic economy. Foreign borrowings will be
the key contributor to the financing of foreign trade projects implemented
127
by corporate customers. Provided that the market conditions are favourable,
the bank will consider economically acceptable schemes to raise untied
credit facilities from international markets as an additional tool to diversify
sources for the resource potential.
We set a target for 2013 to implement a set of activities related to further development of organizational aspects of structuring the work within
the bank. They will be directed toward improving of corporate management
mechanisms and enhancing the efficiency of internal control and risk management systems.
ОАО «БЕЛАГРОПРОМБАНК»
пр. Жукова, 3
220036, Минск, Республика Беларусь
тел. +375 17 218 57 77, +375 17 218 57 15
факс +375 17 218 57 14
www.belapb.by
email: info@belapb.by
ООО «РИФТУР ПРИНТ».
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Пр. Победителей, 19а, 220004, Минск
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