Annual Report 2001

Annual Report 2001
Annual Report 2001
Contents
Page
- Introductory Note by Acting Director General
7
- Business Profile of Delta Banka
9
- Independent Auditor's Report
13
- Organizational Scheme
42
- Branch Network
46
Annual Report 2001
Annual Report 2001
INTRODUCTORY NOTE BY ACTING DIRECTOR GENERAL
To Shareholders and Business Partners
Delta Banka A.D. Beograd was founded 10 years ago as an universal bank able to fully, correctly and
efficiently respond to the broad range of services to all requirements of its customers.
The Head Office of the Bank is in Belgrade, and its 39 outlets are located in all major towns all over Serbia.
Operating in the economic ambiance characterized in the past period by the sanctions of the
international community, the fall in the GDP product and in overall economic activities, Delta Banka
A.D. managed to increase its capital and to preserve its real value, realize the profit, and become the
leading Yugoslav bank.
The basic features of the Bank that ensure its present-day good reputation and development perspectives
are:
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Developed network of branch offices
Dynamic managing team
Highly professional staff
Significant share in the deposit potential of the business banking of Yugoslavia with almost 33,000
customers - legal entities, of which number more than 24,000 are the Bank's depositors
High level of household savings in foreign currencies
Large network of 139 correspondents abroad, which number includes 30 current account
correspondents
Permanent liquidity without outstanding obligations in the country and abroad
Well-organized internal control and monitoring of the risk inherent in banking operation
An extraordinarily powerful and developed information system
Consistently to its business policy and the original principles, the Bank will in the future continue to
rationalize its operation in all segments by winning, at the same time, new financial deals, adapting to the
market conditions and ensuring the competitiveness on the market of bank services, with full respect for
international business morale standards.
We hope our presentation will contribute to the strengthening of the ties and to the interest of our foreign
partners in terms of strategic linking.
Acting Director General
Draginja Djuric
7
Annual Report 2001
BUSINESS PROFILE OF DELTA BANKA
CONTENTS
Page
- Summary of the Bank's business activity
10
- Bank's staff
10
- Information System
11
- Basic Strategies of Further Development
11
9
Annual Report 2001
SUMMARY OF THE BANK'S BUSINESS ACTIVITIES
The basic characteristics of the business environment during 2001 can be briefly summarized as follows:
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Macro-economic stabilization and re-entry of the country in international financial organizations,
The markedly restrictive character of the monetary, credit and foreign exchange policies, with a
24.5% mobilization of the Dinar potential,
High level of tax obligations despite the amendments of the tax regulations,
Decrease in the annual retail price rise from 113.3% in 2000 to 38.7% in 2001,
Introduction of the floating exchange rate and its maintenance at a relatively stable level,
Growth of the GDP product at the rate of 5.5%
Reduction of the external debt of the country by its write-off by the Paris Club,
Intensification of the process of credit portfolio control, and of capital adequacy assessment by the
monetary authorities with a view to restructuring the entire banking system in the country.
The results Delta Banka achieved in 2001 placed it at lead position among Yugoslav banks. An objective
assessment of the Bank's performance can be made on the basis of the following indicators:
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High level of Dinar and foreign exchange liquidity allowing the Bank to meet in time all its
financial obligations and transactions, and depositors to dispose in unhampered manner of their
own assets,
Deposit potential of the Bank increased significantly, as did the number of depositors,
High growth in households' foreign exchange savings was registered, and the volume of
transactions carried out with households has gone up as well,
An important volume of international payment transactions was recorded,
The Bank's credit portfolio was largely marked by the companies in the areas of
telecommunications, electric power industry, pharmaceuticals, tobacco industry, trading in gas
and oil, beer and cement production, as well as for the public sector (public utilities infrastructure
and social activities),
High rate of recovery of the claims equal to 95.13% is the result of the maximum backing of
credits and credit dispersion by beneficiaries and maturity terms,
Necessary preparations have been carried out for launching operations with payment cards in
2002.
BANK STAFF
As of 31 December 2001 the Bank employed 479 workers, out of which 230, or 48% are university
graduates. Branch offices employ 319 people.
In 2001, a great attention was dedicated to professional education and training of the staff members. This
is in line with one of the basic ideas cherished in Delta Banka that only by constant educating of the
employees it is possible to keep pace with modern banking flows, and to respond to any challenge in
business.
The dynamic management team, experience and professionalism of the staff, application of world business
standards and a good knowledge of the local environment are only a part of the advantages making Delta
Banka a leading Yugoslav bank.
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Annual Report 2001
INFORMATION SYSTEM
Delta Banka's information system ensures a competitive advantage in terms of speed and quality in
transacting banking operations.
•
The system relies on modern equipment, based on the client-server architecture, a powerful,
digital communication infrastructure that links all organizational parts of the Bank into a single
system that operates in on-line regime. The access to data is secured by a password and a special
project of authorized access to certain operations and data segments.
•
Data processing is formally and logically program controlled, which provides reliability and
accuracy of the data and information necessary for business decision-making by the management.
BASIC STRATEGIES OF FURTHER DEVELOPMENT
Delta Banka will, in the forthcoming period, aspire for achieving the highest standards in rendering its
services to customers. In this endeavor, of strategic importance will be:
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•
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•
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Raising the level of confidence in the long-term stability of the Bank by disclosing reliable
information about the financial condition of the Bank, particularly about its solvency and
liquidity, and risk management
Providing competitiveness on the market by decreasing the operational costs (cost rationalization
in all operation segments)
Raising assets with special accent on the growth of long-term sources
Selection of strategic partner and therefore capital increase
Controlled growth of the credit portfolio
Development of retail banking
Expansion of the volume and raising the quality of services.
The circumstances indicating a favorable outcome of the above listed strategies include:
•
•
•
•
•
A recognizable image of the Bank
Taking over payment transactions in Dinars in the country
Increase in households' savings in Dinars and in foreign currencies, as a result of restored
confidence in banks on the part of households
Intensive work in developing operations with the payment cards
The strong information system as fundamental support to all business undertakings and activities.
11
Annual Report 2001
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2001
AND INDEPENDENT AUDITORS' REPORT
CONTENTS
Page
- Independent Auditors' Report
14
- Statement of Income
15
- Balance Sheet
16
- Statement of Changes in Equity
17
- Statement of Cash Flows
18
- Notes to the Financial Statements
19
13
Annual Report 2001
INDEPENDENT AUDITORS’ REPORT
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
DELTA BANKA A.D., BEOGRAD:
We have audited the accompanying balance sheet of Delta Banka A.D., Beograd, ("the Bank") as of
31 December 2001, and the related statements of income, changes in equity and cash flows for the
year then ended. These financial statements, set out on pages 15 to 38, are the responsibility of
the Bank’s management. Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audit in accordance with International Standards on Auditing. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the Bank as of 31 December 2001, and the results of its operations and its cash
flows for the year then ended, in accordance with the accounting convention and policies disclosed
in notes 2 and 3 to the financial statements.
Without qualifying our opinion we draw attention to the following matters:
(a) The Bank has made adjustments to its statutory financial statements as of, and for the year
ended 31 December 2001, for the first time in order to present them in accordance with the
accounting convention and policies disclosed in notes 2 and 3. Since it was impracticable to adjust
the comparative statements of income and cash flows for the year ended 31 December 2000, for
they have not been prepared in terms of the measuring unit current at the end of the reporting
year, they have been omitted from the accompanying financial statements. The omitted financial
statements are shown in Appendix 2, not covered by this auditors’ opinion.
(b) As explained in note 24b, the Bank is required to maintain certain minimum or maximum ratios
with respect to its activities and composition of risk assets in compliance with the Yugoslav Law
on Banks and Other Financial Organizations and the National Bank of Yugoslavia regulations. As
of 31 December 2001, only the ratio of property and equipment as a percentage of equity of
39.60% was higher than the prescribed limit of 20%. Presently, this ratio is being reconsidered by
the National Bank of Yugoslavia and is expected to be increased.
(c) As disclosed in note 16, the Bank’s management believes that the value of property and
equipment reported in these financial statements is understated. However, as no independent
valuation of property and equipment was performed, it was not practicable to determine the
amount of understatement, if any.
Belgrade, 28 February 2002
Deloitte & Touche
14
Annual Report 2001
The accompanying notes form an integral part of these financial statements.
Approved by,
Vladan |or\evi]
Director General
15
Annual Report 2001
The accompanying notes form an integral part of these financial statements.
16
Annual Report 2001
The accompanying notes form an integral part of these financial statements.
17
Annual Report 2001
18
The accompanying notes form an integral part of these financial statements.
Annual Report 2001
1. BANK’S ESTABLISHMENT AND OPERATING POLICY
Delta Banka A.D., Beograd (hereinafter "the Bank") is a shareholding company established in 1991
and registered in the Federal Republic of Yugoslavia for payment transfers, credit and deposit
activities in the country and abroad, and in accordance with the Yugoslav law, is to operate on
principles of liquidity, security of placements and profitability.
On 1 July 2001 the Bank acquired Tigar banka A.D., Pirot. The shareholders of the acquired bank
became the Bank’s shareholders thereby increasing the capital of the Bank was increased by Dinar
93,796 thousand. By its decision dated 5 October 2001, the Commercial Court in Belgrade
approved this increase of capital.
As of 31 December 2001, the Bank’s shares were owned by three shareholders: Hemslade Trading
Ltd., Cyprus, Delta M, Beograd and Tigar, Pirot who hold 92.27%, 4.28% and 3.45% of the Bank’s
outstanding shares, respectively. Hemslade Trading Ltd., Cyprus and Delta M, Beograd are
members of the group of companies referred to as the Delta Group.
As of 31 December 2001, the Bank was comprised of a Head office in Belgrade and thirty
branch offices throughout the country.
During FY 2001, the Bank operated in an environment characterized by structural reforms
occuring within commercial, banking and fiscal sectors of the Yugoslav economy. The main goals
of the federal and republic governments in 2001 were to maintain the stability of the domestic
currency and to appease the inflation rate. In an effort to achieve these policy aims, the
government moved ahead with the full restructuring of the banking sector. With a view to
acchieving this end, the National Bank of Yugoslavia prepared a detailed strategy plan of solutions
beginning with a diagnostic review of the financial position of all existing banks. Concurrently, the
NBY defined a deadline before which all banks were required to comply with the applicable
Banking Law and National Bank of Yugoslavia Directives.
2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS AND ACCOUNTING CONVENTIONS
2.1. Accounting Convention
The Bank maintains its accounting records and prepares its statutory financial statements in
accordance with the Yugoslav accounting standards and regulations, and requirements stipulated
by the Law on Banks and other Financial Institutions and the National Bank of Yugoslavia
Directives.
The Yugoslav accounting standards and regulations that were applied for preparation of
statutory financial statements depart from International Accounting Standards as specified below:
• Non-application of IAS 29, "Financial Reporting in Hyperinflationary Economies". As a result,
non-monetary and certain monetary assets and equity have been revalued by applying officially
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Annual Report 2001
published retail price indices. However, no revaluation of the statement of income for the year
ended 31 December 2000 was made and, accordingly, it is not presented in terms of the
measuring unit current at the end of the reporting period, as required by IAS 29.
• The Bank’s taxation policy is based on Yugoslav tax regulations and differs from IAS 12, "Income
Taxes" in that Yugoslav tax regulations do not recognize temporary differences. Accordingly, no
deferred tax assets or liabilities are recognized.
• Due to undeveloped financial markets, the fair value of financial assets and liabilities is not
determined in accordance with IAS 32 and IAS 39, "Financial instruments".
• Impairment of assets is not determined in accordance with IAS 36, "Impairment of assets".
Adjustments to statutory financial statements in order to present them in the format required by
International Accounting Standards were made for the first time, as the accounting basis as of 31
December 2001. Accordingly, these financial statements differ from the statutory financial
statements and are presented in accordance with the accounting policies disclosed in note 3. The
adjustments made to the statutory balance sheet are shown in Appendix 1.
The Bank’s functional currency is the Yugoslav Dinar.
Comparative Figures
Comparative financial statements as of, and for the year ended, 31 December 2000 have been prepared under the historical cost convention, as modified by the revaluation of non-monetary and
certain monetary assets and equity, based on officially published retail price indices.
Certain reclassifications were made to present the comparative balance sheet in the format
required by International Accounting Standards, however it was impracticable to make any
adjustments thereto.
Because the comparative figures shown in the statements of income and cash flows for the year
ended 31 December 2000 are not presented in terms of the measuring unit current at the end of
the reporting period, and since it was impracticable to make adjustments thereto, these
statements are omitted from the accompanying financial statements.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1. Income and Expense Recognition
Interest income and interest expense, including penalty interest, and other operating income and
expenses are accounted for on an accrual basis. Interest income arising on the obligatory foreign
currency deposits with respect to the international payment license, is recorded when collected.
Investment income and fee and commission receivable are recognized when earned.
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Annual Report 2001
3.2. Foreign Exchange Translation
Transactions denominated in foreign currencies are translated into dinars at the official Interbank
Market rates prevailing at the date of each transaction.
Assets and liabilities denominated in foreign currencies are translated into dinars by applying the
official Interbank Market rates prevailing on the balance sheet date.
Net foreign exchange gains or losses arising upon translation of transactions and assets and
liabilities denominated in foreign currencies are credited or charged to the statement of income.
Contingent liabilities denominated in foreign currencies are translated into dinars at the official
rates prevailing at the year end.
3.3. Property and Equipment
Property and equipment, construction in progress and intangible assets as of 31 December 2000
are stated at revalued cost, less accumulated depreciation and amortization.
Revaluation of property and equipment performed in accordance with Yugoslav accounting
regulations as of 31 December 2001 has been reversed for the purpose of presentation of these
financial statements.
Depreciation and amortization based on the prior year-end restated amounts and the cost of
additions during the year, is calculated on a straight-line basis at the following prescribed annual
minimum rates in order to write off the assets over their estimated useful lives:
Buildings
Computers and related equipment
Furniture and equipment
Intangible assets
1.3%
20%
7% - 25%
20%
Depreciation and amortization on property and equipment, construction in progress and
intangible assets commence on the day such assets are placed into service. In comformity with the
new accounting regulations applicable for the FY 2001, the depreciation charge has been revalued
by applying the officially published revaluation coefficients. Since the rates prescribed by Yugoslav
accounting regulations are generally lower than the rates required by IAS, no reversal of
revaluation of depreciation is made in these financial statements.
3.4. Loans
Loans are stated in the balance sheet at the amount of principle outstanding, less any provision for
bad and doubtful debts. Provision is recognized on the amounts for which a recovery is doubtful.
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Annual Report 2001
3.5. Provisions for Bad and Doubtful Debts and Potential Losses
The Bank recognizes a full provision against amounts receivable that are more than thirty days
overdue, if as per management’s assessment, these amounts are not recoverable. The unpaid
interest for the current period arising on these receivables is reversed. Provision for potential
losses and contingent liabilities is based on the year-end evaluation of exposure arising on
contingent liabilities. In accordance with the National Bank of Yugoslavia regulations, the
exposure is graded into categories A, B, C, D and E, based on the number of days amounts are
overdue, and on the borrower’s financial position. Provision is calculated at 50%, 75% and 100%
for categories C, D and E, respectively. No provision is calculated on the exposure graded into
categories A and B.
Provision for bad and doubtful debts is recognized as an expense, charged against income and
deducted from the total amount of loans, interest and fees, investments and other receivables,
respectively. Provision for potential losses and contingent liabilities is charged against income and
shown in the balance sheet as a liability.
3.6. Trading Securities
Trading securities consist of treasury bills, commercial papers and bonds issued by the Federal
Republic of Yugoslavia based on the unpaid foreign currency public savings.
Trading securities are valued at the lower of cost or market value where a securities market exists.
3.7. Investments
Investments comprise equity investments and equity securities. Equity investments with a
controlling or significant interest include investments in companies in which the Bank holds an
equity share of 10% or more. Equity securities include other shareholdings, which do not meet the
aforementioned criteria.
Investments shown in the balance sheet as of 31 December 2000 were recorded at revalued cost,
less an allowance for permanent diminution in value, when appropriate. New investments made
during FY 2001 are recorded at cost.
The effects of the revaluation of investments, performed in accordance with Yugoslav accounting
regulations as of 31 December 2001, have been reversed for the purpose of preparation of these
financial statements.
3.8. Cash and Cash Equivalents
For purposes of the statement of cash flows, cash and balances with other banks and the
unrestricted balances with the National Bank of Yugoslavia ( NBY ), including the obligatory
reserves, are considered to be cash equivalents.
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Annual Report 2001
3.9. Taxes and Contributions
Income Tax Expense
Income tax expense represents an amount calculated and payable under Yugoslav tax law. Tax
authorities determine the estimated monthly advance of income tax payable.
The Bank‘s effective income tax rate is 20% and is payable on the taxable base reported in the tax
returns. The taxable base reported in the tax returns includes the profit shown in the statutory
statement of income, as adjusted for permanent differences that are defined by the Yugoslav tax
law. Such adjustments comprise mainly adding back certain disallowed expenses and, up to 30
June 2001, deducting certain capital expenditures and investments incurred during the year, up to
the percentage determined by the applicable tax rules. After 30 June 2001, subsequent to
amendments in the tax rules, certain capital expenditures and investments became deductible
from the income tax expense. The Yugoslav tax law does not recognize temporary differences and
accordingly, no deferred tax assets or liabilities are recognized.
The Yugoslav tax law does not allow tax losses of the current period to be used to recover taxes
paid within a specific carry-back period. However, the current year losses may be used to decrease
taxable profits for future periods - but for no longer than five years.
Indirect taxes and contributions
Indirect taxes and contributions include property taxes, employer contributions on salaries, and
various other taxes and contributions paid pursuant to republic and municipal regulations. These
taxes and contributions are included under “Other operating expenses“.
3.10. Fair Value
It is the policy of the Bank to disclose the fair value information of those assets and liabilities for
which published market information is readily available, and whose fair value is materially
different from their recorded amounts. Sufficient market experience, stability and liquidity do not
exist for the purchase and sale of loans and other financial assets or liabilities, for which published
market information is not readily available. Accordingly, fair value cannot readily be determined.
In the opinion of management, the reported recoverable amounts are the most valid and useful
reporting values under the existing market conditions.
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Annual Report 2001
24
Annual Report 2001
It is a policy of the Bank to make donations and sponsor certain national projects and events.
A portion of these donations and sponsorships is tax deductible.
25
Annual Report 2001
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Annual Report 2001
The obligatory reserve in dinars represents a deposit required by the National Bank of Yugoslavia
and is calculated on the basis of the average amount of cash held by the Bank and its deposit
liabilities in the preceding ten-day period. This deposit is available for liquidity purposes. At 31
December 2001 and 2000 the Bank was in compliance with the NBY reserve requirement. The
National Bank of Yugoslavia pays the applicable interest on like funds held on the obligatory
reserve account.
Pursuant to the National Bank of Yugoslavia Decision, the banks licensed to carry out
international payments and credit operations are obligated to place foreign currencies on deposit
with the National Bank of Yugoslavia in an average amount equivalent to USD 4 million.
Foreign currency public savings are deposited in accordance with the National Bank of Yugoslavia
requirements introduced on 1 July 2001. As per these requirements, banks are obligated to
maintain a deposit with the NBY at an amount equivalent to 50% of the balance of public savings
in foreign currencies effective at the end of the previous month. This deposit earns interest at an
annual rate of 3%.
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Annual Report 2001
Time deposits in foreign currencies are mainly deposited with several European banks and have
maturities of up to 30 days, with an annual interest rate in a range from 1.55% to 3.75%.
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Annual Report 2001
As of 31 December 2001, placements with and loans to other banks for up to one year in foreign
currencies include the amount of Dinar 220,910 thousand which represents a short-term deposit
maturing in February 2002 (denominated in EUR) and the amount of Dinar 118,626 thousand
representing funds placed with foreign banks to serve as collateral for issued payment guarantees and
letters of credit.
Dinar loans for up to one year are granted to enterprises for the purposes of financing commercial
activities in the areas of agriculture and food production, import financing, export trade, and other
activities.
Dinar loans for over one year include loans granted to citizens in the amount of Dinar 187,558
thousand (FY 2000 -Dinar 14,813 thousand) granted for housing purposes, with grace periods
ranging from three to five years.
The loan portfolio includes loans to a shareholder (holding 3.45% of the Banks shares) in the
amount of Dinar 120,968 thousand. Some of these loans were granted under specific credit
arrangements.
The loan portfolio includes loans to entities within the Delta Group, in the amount of Dinar
477,191 thousand. Certain loans were granted under specific credit arrangements. The related
provision is charged against income and amounts to Dinar 9,983 thousand.
The movement in the provision for impairment is as follows:
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Annual Report 2001
The economic sector risk concentrations within the customer loan portfolio were as follows:
The geographic sector risk concentrations within the customer loan portfolio were as follows:
The Bank has no commitments to these enterprises, nor liabilities to third parties with respect to
the operations of the above-stated entities.
The movement in the provision for impairment is as follows:
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Annual Report 2001
Construction in progress is primarily related to the construction of the Bank’s office building to
which it will move its offices from its currently rented business premises.
Due to a discrepancy between the official and market exchange rates before 5 December 2000, the
value of property and equipment was materially understated. This understatement could not be
recovered by the revaluation of property and equipment made in accordance with Yugoslav
accounting regulations.
Following the Bank s decision to apply International Accounting Standards, the effects of
revaluation performed, as of 31 December 2001, in accordance with Yugoslav accounting
regulations, were reversed and consequently, management believes that property and equipment
have been understated in these financial statements.
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Annual Report 2001
Accrued interest and other assets include receivables from the shareholders (holding 7.73% of the
Bank’s shares), as well as receivables from other members of the Delta Group in the amount of Dinar
15,225 thousand. The corresponding provision charged against income amounts to Dinar 4,624
thousand.
The movement in the provision for uncollectible amounts is as follows:
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Annual Report 2001
Demand deposits in dinars consist of the giro account balances of enterprises and governmental
institutions, as well as other organizations whose payments are recorded by the National Bank of
Yugoslavia service for payment transfers and settlements ( ZOP ).
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Annual Report 2001
20. OTHER BORROWED FUNDS
Other borrowed funds as of 31 December 2001 in the amount of Dinar 65,549 thousand represent
short-term borrowings received from the Fund for Development of the Republic of Serbia, with the
purpose of financing production for export. These borrowings bear an annual interest rate of 9%
and mature within six months. These funds were loaned to customers under the same conditions.
Liabilities to customers in the amount of Dinar 862,123 thousand (FY 2000 - Dinar 283,861
thousand) include the amount of Dinar 825,845 thousand which represents a liability to customers
purchasing of foreign currencies for the subsequent related payments to their foreign partners.
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Annual Report 2001
23. SHARE CAPITAL
In accordance with its articles of incorporation, the Bank’s capital consists of share capital and the
Bank’s reserves.
The share capital of the Bank was created from the initial investment of its shareholders, as well
as from the revaluation reserves. The shareholders have the right to take part in the management
of the Bank, as well as in the distribution of profit.
As of 1 July 2001 the Bank acquired Tigar banka A.D., Pirot. Related to acquisition, the Bank’s share
capital was increased by Dinar 93,796 thousand, pursuant to the Commercial Court of Belgrade’s
Decision dated 5 October 2001.
As of 31 December 2001, majority of the Bank’s shares is owned by three shareholders: Hemslade
Trading Ltd., Cyprus, Delta M, Beograd and Tigar, Pirot who hold 92.27%, 4.28% and 3.45% of the
Bank’s outstanding shares, respectively. Hemslade Trading Ltd., Cyprus and Delta M, Beograd are
members of the group of companies referred to as the Delta Group.
The Bank is required to maintain a minimum capital adequacy ratio of 8%, as established by the
National Bank of Yugoslavia, based on the Basle Accord. As of 31 December 2001, the Bank’s
capital adequacy ratio was 24.81% (in FY 2000 - 48.02%).
Included among commitments and contingencies is the amount of Dinar 159,182 thousand
related to guarantees and letters of credit issued to shareholders owning 7.73% of the Bank’s
shares and to other members of the Delta Group.
There were no forward foreign exchange commitments as of 31 December 2001.
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Annual Report 2001
b) Compliance with Legal Requirements
The Bank is required to maintain its ratios pertaining to the volume of activities and composition
of risk assets in compliance with the Yugoslav Law on Banks and Other Financial Institutions and
the National Bank of Yugoslavia regulations. As of 31 December 2001 and 2000, the following
ratios were not within their prescribed limits:
36
Annual Report 2001
37
Annual Report 2001
38
Annual Report 2001
39
Annual Report 2001
CONTENTS
Page
- ORGANIZATIONAL SCHEME
42 - 43
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Annual Report 2001
ORGANIZATIONAL
42
Annual Report 2001
SCHEME
43
Annual Report 2001
CONTENTS
Page
- BRANCH NETWORK
46 - 47
45
Annual Report 2001
BRANCH NETWORK
BEOGRAD
Narodnih heroja 43
KRUŠEVAC
^olak Antina 9
ZRENJANIN
Vojvode Bojovi}a bb
KRAGUJEVAC
Save Kova~evi}a 12/B
ARANÐELOVAC
Jadranska br. 9
VRANJE
Kneza Miloša 20
PREŠEVO
Maršala Tita br. 4
NIŠ
Nade Tomi} 8A
ŠABAC
Maršala Tita 44
VLADIMIRCI
Svetog Save br. 12
PAN^EVO
Trg Kralja Petra I br. 6
VALJEVO
Prote Mateje br. 1
NOVI SAD
Bul. Mihajla Pupina 4
KRALJEVO
Trg Jovana Sari}a br. 8
46
Annual Report 2001
VRNJA^KA BANJA
Cara Dušana 8
PETROVAC NA MLAVI
Bate Buli}a br. 47
PARA]IN
Branka Krsmanovi}a 44
PIROT
Branka Radi~evi}a 18
SUBOTICA
Cara Dušana 1
NEGOTIN
Trg Ðor|a Stanojevi}a 7
^A^AK
Ku`eljeva br. 1
SREMSKA MITROVICA
Kralja Petra I br. 6
KANJI@A
Maršala Tita br. 3
LOZNICA
Vlade Ze~evi}a 1
ADA
Save Kova~evi}a 1
SOMBOR
Venac Stepe Stepanovi}a 32
NOVI PAZAR
AVNOJ-a bb
ZAJE^AR
Nikole Paši}a 70
PRIJEPOLJE
Sand`a~kih brigada br.11
KIKINDA
Bra}e Tati}a br. 16
RAŠKA
Nemanjina br. 9
BE^EJ
Dositejeva 14
U@ICE
Petra ]elovi}a 4
JAGODINA
Kneginje Milice bb TC 1
ARILJE
Centar br. 8
PROKUPLJE
Jug Bogdanova 85
KOSJERI]
Zanatski centar/lokal 4
TIGAR
Branka Radi~evi}a bb
LESKOVAC
Trg Revolucije 21
PO@AREVAC
Trg Radomira Vujovi}a 12
47
Annual Report 2001