Annual Report of BANKART d.o.o. for the January–December 2014

Annual Report of BANKART d.o.o.
for the January–December 2014 period
The bases for compiling the Annual Report include the Business Development Plan and Realisation, the
Financial Plan and Realisation for 2014 and the audited annual financial statements for the 2014 business year.
TRANSLATION NOTE:
These financial statements and the accompanying audit report have been translated from the Slovenian original.
This translation is provided for reference purposes only and is not to be signed.
Ljubljana, 30/03/2015
Aleksander Kurtevski
Director
Miran Vičič
Director
2014 Annual Report
Bankart d.o.o.
TABLE OF CONTENTS
I.
BUSINESS REPORT .......................................................................................... 3
COMPANY PROFILE ............................................................................................................. 3
GENERAL ORGANISATION .................................................................................................... 4
MANAGEMENT BODIES......................................................................................................... 6
BUSINESS AREAS OF THE COMPANY .................................................................................... 7
THE COMPANY’S ORIENTATIONS .........................................................................................13
MANAGING DIRECTOR’S REPORT ........................................................................................14
BUSINESS AND FINANCIAL REPORT......................................................................................19
RISK MANAGEMENT ............................................................................................................21
PERSONNEL AND THE ORGANISATION ..................................................................................22
PERFORMANCE INDICATORS ...............................................................................................24
EVENTS AFTER THE END OF THE BUSINESS YEAR .................................................................24
II. FINANCIAL STATEMENTS WITH NOTES ........................................................ 25
STATEMENT OF MANAGEMENT'S RESPONSIBILITY .................................................................25
AUDITOR'S REPORT ............................................................................................................26
FINANCIAL STATEMENTS .....................................................................................................28
SIGNIFICANT ACCOUNTING POLICIES ...................................................................................33
NOTES TO FINANCIAL STATEMENTS .....................................................................................37
OTHER DISCLOSURES .........................................................................................................48
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I. BUSINESS REPORT
Company profile
Registered office and legal status of the Company
In 1997, the majority of Slovenian banks established a company for processing payment instruments - Bankart,
procesiranje plačilnih instrumentov, d.o.o. Ljubljana.
The purpose of establishing Bankart was to reduce operating and development costs as well as to harmonise
both self-service and card operations.
Name: BANKART procesiranje plačilnih instrumentov d.o.o., Ljubljana
Registered office: Celovška 150, 1000 Ljubljana, Slovenia
Abbreviated name: Bankart d.o.o., Ljubljana
Tel.: +386 1 5834 100
Fax: +386 1 5834 196
E-mail: info@bankart.si
Website: www.bankart.si
Core business activity: data processing and the related activities
Founding general meeting: 12/12/1997
Entry in the Companies Register: 05/02/1998
Beginning of operations: 01/04/1998
Registration file no.: 1/30179/00, District Court in Ljubljana
Tax number: 99311623
Company registration no.: 1244272
Share capital: EUR 2,000,082,
Pursuant to the provisions of Article 55 of the Companies Act the Company is classified as a medium-sized limited
liability company.
Founding members
Nova Ljubljanska banka d.d., Ljubljana
SKB banka d.d., Ljubljana
Nova kreditna banka Maribor d.d., Maribor
Banka Koper d.d., Koper
Abanka Vipa d.d., Ljubljana
Gorenjska banka d.d., Kranj
Banka Celje d.d., Celje
UniCredit Banka Slovenija d.d., Ljubljana
Raiffeisen banka d.d., Maribor
Deželna banka Slovenije d.d., Ljubljana
Poštna banka Slovenije d.d., Maribor
Probanka d.d., Maribor
Sberbank banka d.d., Ljubljana
Share in %
39.44
13.62
12.99
7.25
7.82
5.56
5.66
2.24
1.73
1.40
1.02
0.89
0.39
Data on the Group
The Company has the status of associated company of the NLB Group. The consolidated financial statements are
available at the headquarters of NLB d.d.
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General organisation
Bankart has succeeded in establishing and maintaining a balance between the continuity and innovativeness by
combining basic, classical and strict organisational structures and a creative project system. Its project
organisational units encompass all departments. As most employees are included in them, these units can be
considered a parallel structure. The basic structure corresponds to the production aspect of Bankart's operations,
while the creative project system is suitable for the innovative and creative part of operations.
Organisational structure
Bankart is managed by the management of the company. Besides two directors, the management also includes:
Director of Technology Division, Director of Financial-Accounting and General Division and Director of
Information Technology Division.
In terms of organisation, the Company is divided in four divisions, consisting of a number of departments and
management support services.
Project system
In Bankart, development management is placed in the hands of the Company’s management. The Project Office
forms part of the Risk Management Department and is in charge of operational monitoring and control. Based
on the project management methodology the Company has introduced guidelines for organised project
implementation with clear predefined criteria.
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Internal Audit (IA)
The IA of Bankart was established in 2004 as an autonomous and independent consulting function which employs
a systematic and professional approach to the assessment of governance, risk management and control
procedures so as to improve them.
The IA is responsible for conducting all types of audits in Bankart. It verifies the adequacy of risk management
and the control environment, recommends improvements, gives assurances to the management as well as
advises the employees and raises awareness among them about the operational risks.
The IA performs its work in line with the Annual Audit Plan which is approved by the management in agreement
with the Supervisory Board of Bankart. At the management's request, in case of increased risks in an area of
operations, the IA also performs extraordinary audits.
In 2014 the IA conducted 5 regular audit aimed at giving assurance and 1 consulting service. In the framework of
the conducted audits the IA focused most attention to the verification of operational risks to which Bankart is
exposed the most. Moreover, the IA regularly monitored the implementation of the recommendations issued in
the course of the audits.
Risk Management Department (RMD)
The purpose of the RMD is to ensure a comprehensive management of the risks, incidents, problems, availability,
business continuity and to guarantee compliance of the company's operations. The department also provides
the account management services for the Central Documentation System, a tool for managing incidents and
problems, manages the area of Project Office development and supervises the operation of the Project Office.
With comprehensive management of all the above processes and by identifying risks and introducing efficient
control mechanisms and controls to reduce these risks, the RMD contributes to the achievement of the Company’s
business goals.
Information Protection Department (IPD)
The mission of the IPD is to protect the Company’s information. Its basic task is to ensure a systematic
development of the function of managing and ensuring information protection as well as to design a
comprehensive information protection system. The latter enables the Company’s management to systematically
deal with adverse events and adopt measures as well as monitor the implementation of the measures and their
effect on the Company’s operations.
Business areas of Bankart
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ATM operations processing
card operations processing
SEPA credit payments processing
SEPA direct debits processing
E-Invoice System processing
E-Invoice System processing
ATM management
POS management
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Management bodies
General Meeting
The members exercise their rights regarding the Company's affairs at the General Meeting of the Company. The
General Meeting’s resolutions are passed with a simple majority of the votes cast, except in cases of amendments
to the Memorandum of Association, appointment and discharge of Supervisory Board members, and decisions
about a change in the Company’s status or its termination, for which a three-quarter majority of the votes of all
members is required. As a rule, the management convenes the General Meeting once a year.
Supervisory Board
From the establishment until 14/03/2014, the Supervisory Board had five members; as of 14/03/2014, it has six
members. The members are elected and discharged by the General Meeting. The resolutions of the Supervisory
Board are passed by a simple majority of the votes cast by the members present.
Supervisory Board members:
Chairman:
Miran Vičič (04/02/2008 to 14/03/2014)
Nima Motazed (14/03 to 10/11/2014 - due to his resignation)
Jure Peljhan (10/11/2014 – appointed substitute member for Nima Motazed;
18/12/2014 – elected Chairman)
Deputy Chair:
Vlasta Brečko
Members:
Marija Kordiš (14/03/2014 – approved new term of office)
Robert Vrenko (term of office expired on 02/07/2014)
Boštjan Kovač (appointed on 02/07/2014)
Srečko Korber (term of office expired on 02/07/2014)
Mojca Osolnik-Videmšek (appointed on 02/07/2014)
Jean Luc – Wattel (appointed on 14/03/2014)
The Company’s management
On 14 March, the company's General Meeting adopted the amendments to the Articles of Association of the
company Bankart, according to which the management body of the company is composed of two directors
(previously one), in charge of organising and managing the company's operations, ensuring compliance and
presenting and representing the company. The Company's management is appointed and discharged by the
Supervisory Board.
Management:
Aleksander Kurtevski
Miran Vičič
Director of Technology Division:
Director of Financial-Accounting and General Division:
Director of Information Technology Division:
Tomaž Borštner
Maja Usnik
Gregor Pirc
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Business areas of the Company
ATM operations
Bankart supervises and manages the ATM network for commercial banks and savings banks dealing in retail
operations in Slovenia, holding a 94% market share. Bankart has continuously been developing technological and
technical solutions for the ATM network for its members and other users as well as provides, in technological
terms, both ATMs and software solutions related to their functioning.
Over the past period, it has expanded the ATM operation processing to the markets of SE Europe. In Bosnia and
Herzegovina it performs the processing services for NLB Banka d.d., Tuzla, in Kosovo for NLB Prishtina and BpB
Prishtina, and in Macedonia for NLB Tutunska banka AD. In November 2014, the operations were expanded to
Serbia, where it provides processing for NLB banka a.d. Belgrade.
Services provided to ATM users
 Quick cash withdrawal,
 selected amount withdrawal,
 information on personal account balances,
 change of personal identification numbers,
 purchase of GSM prepaid cards,
 automatic cash deposit,
 electronic execution of universal payment orders,
 printing of personal account statement,
 transfer of funds between accounts,
 cash deposit order,
 order to execute payment orders,
 information on credit card balances.
Additional activities ensuring undisturbed operation of the ATM network
Other services which Bankart provides to ensure a comprehensive range of services in the area of payment
instrument processing include:
 authorisation of domestic and international payment instruments,
 consulting on ATM operations,
 generation and distribution of personal identification numbers (PINs),
 compilation of various instructions for ATMs and their administration,
 training and education of bank employees in the field of ATM operations;
 forwarding of data for effecting payments,
 input of keys and parameters required for ATM operations (installation),
 solving complaints, etc.
Number of ATMs in Bankart’s ATM network
Since 2000, the number of ATMs in Bankart’s ATM network has more than doubled.
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ATM types and types of cards that can be used in the ATMs within Bankart's ATM network
Bankart's ATM network comprises the Diebold, NCR and Wincor Nixdorf types of ATMs. These accept BA Maestro
and Activa Maestro cards, the major international cards – MasterCard, Visa and Diners and the local card
products - Casys, Dina.
Commercial banks and savings banks included in Bankart's ATM network:
Abanka Vipa, d.d., Banka Celje, d.d., Banka Koper, d.d., Banka Sparkasse, d.d., Delavska hranilnica, d.d., Deželna
banka Slovenije, d.d., Gorenjska banka, d.d., Hranilnica LON, Hypo Alpe-Adria-Bank, d.d., Nova KBM, d.d., Nova
Ljubljanska banka, d.d., Poštna banka Slovenije, d. d. – banking group NKBM d.d., Probanka, d.d., Raiffeisen
banka, d.d., Sberbank banka, d.d., SKB, d.d., UniCredit Banka Slovenija, d.d., NLB Banka, d.d., Tuzla, NLB
Prishtina, BpB Prishtina, NLB Tutunska banka AD Skopje and NLB banka a.d. Belgrade.
Note: Factor banka stopped providing payment transactions on 01/07/2014.
'ATM Settlement' payment system
In co-operation with banks and the Bank of Slovenia, Bankart formally established the 'ATM Settlement' payment
system. Based on the approved rules of operation of the 'ATM Settlement' payment system, it provides services
related to calculation of mutual receivables and liabilities of the banks participating in this payment system and
services related to its management.
Card service processing
In the area of card processing in Slovenia Bankart provides processing services for Abanka Vipa, d.d., Banka
Sparkasse, d.d., Delavska hranilnica, d.d., Hypo Alpe-Adria-bank, d.d., Nova Ljubljanska banka, d.d., SKB banka,
d.d., UniCredit Banka Slovenija, d.d. and Nova KBM d.d. (Karanta). Bankart processes debit cards for all of the
abovementioned banks, and other card products (MasterCard, Visa, Karanta, Zegin?, Dina?) for most of them.
It also provided processing services to Factor banka until 01/07/2014; as of that date, Factor banka stopped
providing payment transactions.
According to the data published in the bulletin of the Bank of Slovenia, there were 1,855,561 credit and 2,404,544
debit cards in Slovenia as at 31/12/2014, i.e. 4,260,105 cards in total. Bankart processes 423,107 credit and
1,521,806 debit cards, representing a 23% market share in the area of credit card processing and a 63% market
share in the area of debit cards in Slovenia.
Card operation processing on the SE European markets
Bankart successfully provides card processing services also on the SE European markets. It processes Maestro,
MasterCard and VISA card products for NLB Banka d.d., Tuzla (BiH) in terms of both card and ATM operations, as
well as provides processing services for POS terminals accepting Visa and MasterCard card products. For NLB
Prishtina (Kosovo) it performs the processing of Maestro, MasterCard and Visa card products, in terms of both
card and ATM operations. For BpB Prishtina (Kosovo) it performs the processing of Visa card products, in terms
of both card and ATM operations. For NLB Tutunska banka AD Skopje (Macedonia) Bankart performs, within the
card operations, processing of Maestro, MasterCard, Visa and a local card product (Zegin), within the ATM
operations, processing of Maestro, MasterCard, Visa, Diners, Amex and a local card product (Casys) as well as,
within POS-terminal operations, processing of Maestro, MasterCard, Visa, Diners, Amex and a local card product
(Zegin). In November 2014, Bankart started co-operating with NLB banka a.d. Belgrade (Serbia), namely the
processing of the local card product Dina, both in terms of card and ATM operations.
Chip technology has been installed in card products, whilst ATMs and POS terminals enable the use of chip
technology.
'Card Settlement' payment system
In co-operation with banks and the Bank of Slovenia, Bankart formally established the 'Card settlement' payment
system. Based on the approved rules of operation of the 'Card Settlement' payment system, it provides services
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related to calculation of mutual receivables and liabilities of the banks participating in this payment system and
services related to its management.
SEPA Small-Value Payment Infrastructure (SIMP)
A few years ago, Bankart established the SEPA Small-Value Payment Infrastructure (SIMP), which is a SEPAcompliant infrastructure used by the SEPA (payment) systems to process the SEPA payment instruments.
SEPA payment systems within the SIMP
 SEPA Internal Credit Payments (SEPA ICP) – designed for the processing of credit payments according
to the SEPA standard within the country;
 SEPA External Credit Payments (SEPA ECP) – designed for the processing of cross-border credit
payments according to the SEPA standard;
 SEPA Internal Direct Debit under the core SEPA scheme (SEPA IDD CORE) – designed for the processing
of SEPA direct debits under the core SEPA scheme within the country;
 SEPA Internal Direct Debit under the business-to-business (B2B) SEPA scheme (SEPA IDD B2B) –
designed for the processing of SEPA direct debits under the business-to-business (B2B) SEPA scheme
within the country.
 SEPA External Direct Debit under the core SEPA scheme for SEPA direct debits (SEPA EDD CORE) designed for the processing of cross-border direct debit according to the SEPA standard;
 SEPA External Direct Debit under the business-to-business (B2B) scheme for SEPA direct debits (SEPA
EDD B2B) - designed for the processing of cross-border direct debits according to the SEPA standard
where the payer can only be a legal entity.
Benefits of establishing the SEPA (payment) systems
By setting up the SEPA ICP and SEPA ECP systems Bankart enabled the banks and savings banks in Slovenia to
offer their clients a uniform standard of payment using SEPA credit payment orders according to the SEPA
standards, regardless of whether the recipient of the payment is located in Slovenia or any other euro area
country.
By establishing SEPA IDD CORE, SEPA IDD B2B, SEPA EDD CORE and SEPA EDD B2B Bankart enabled the banks
and savings banks in Slovenia to:
 offer their clients a uniform standard for making and receiving direct debit payments, regardless of
whether the payer or the recipient of the payment is located in Slovenia or in any other euro area
country; and
 ensure accessibility to cross-border direct debits according to the SEPA standard under the CORE and
B2B schemes.
Joining other European clearing companies
By unifying the standard for paying with SEPA credit payment orders and the standard for SEPA direct debiting
within the euro area, any clearing company in Europe can provide processing of payments between banks and/or
providers of payment services in a competitive environment. By establishing the SEPA (payment) systems,
Bankart joined other European clearing companies which provide processing of SEPA credit payments according
to a single standard and processing of SEPA direct debits according to a single standard.
SEPA credit payments processing
On behalf of the banks and savings banks Bankart acquired the authorisation from the Bank of Slovenia to
establish the SEPA Internal Credit Payments (SEPA ICP) payment system. Bankart, as a clearing house, also
acquired the authorisation from the Bank of Slovenia for performing the SEPA ICP payment system management
services.
The SEPA ICP payment system enables the execution of credit payment orders between participants in the
system under the SEPA standard. The banks and savings banks participating in the SEPA ICP system can offer
their clients domestic payments under the single standard of SEPA credit payments.
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The use of this single standard has considerably simplified the execution of payment orders among banks and
savings banks in different SEPA countries and has been facilitated by established connections among the
clearing houses in this area. Therefore, Bankart also provides (through its complementary SEPA External Credit
Payments system – SEPA ECP and the Bank of Slovenia as the agent bank in the SEPA ECP system) connection
with the STEP2-SCT trans-European payment system which is managed by EBA Clearing. Thus it ensures to the
Bankart system participants access (for making and receiving of payments) to transaction accounts kept by
banks and savings banks in Europe and their subsidiaries.
Participants in the SEPA Internal Credit Payments system:
Abanka Vipa d.d., Banka Celje d.d., Banka Koper d.d., Banka Slovenije, Banka Sparkasse d.d., BKS Bank AG,
Delavska hranilnica d.d., Deželna banka Slovenije d.d., Gorenjska banka d.d., Hranilnica Lon d.d., Hranilnica
Vipava d.d., Hypo Alpe-Adria bank d.d., Nova kreditna banka Maribor d.d., Nova Ljubljanska banka d.d., Poštna
banka Slovenije d.d., Probanka d.d., Raiffeisen banka d.d., Sberbank banka d.d., SKB banka d.d., UniCredit
Banka Slovenija d.d. and the Bank Association.
Participants in the SEPA External Credit Payments system:
Abanka Vipa d.d., Banka Celje d.d., Banka Slovenije, Banka Sparkasse d.d., BKS Bank AG, Delavska hranilnica
d.d., Deželna banka Slovenije d.d., Gorenjska banka d.d., Hranilnica Lon d.d., Hranilnica Vipava d.d., Hypo AlpeAdria bank d.d., Nova kreditna banka Maribor d.d., Nova Ljubljanska banka d.d., Poštna banka Slovenije d.d.,
Probanka d.d., Raiffeisen banka, d.d., Sberbank banka d.d. and the Bank Association.
Indirect participants in the SEPA External Credit Payments system:
Sberbank CZ, a.s. (the Czech Republic), Sberbank Hungary Ltd (Hungary) and Sberbank d.d (Croatia)
Note: Factor banka stopped providing payment transactions on 01/07/2014 and consequently exited all SEPA
systems in which it participated.
SEPA direct debits processing
In the past years Bankart established the following:
1. two SEPA systems for processing cross-border SEPA direct debits:
 SEPA External Direct Debit under the core SEPA scheme for SEPA direct debits (SEPA EDD CORE) designed for the processing of cross-border direct debit according to the SEPA standard;
 SEPA External Direct Debit under the business-to-business (B2B) scheme for SEPA direct debits
(SEPA EDD B2B) - designed for the processing of cross-border direct debits according to the SEPA
standard where the payer can only be a legal entity;
2. two SEPA systems for processing domestic SEPA direct debits:
 SEPA Internal Direct Debit under the core SEPA scheme (SEPA IDD CORE) – designed for the
processing of SEPA direct debits under the core SEPA scheme within the country;
 SEPA Internal Direct Debit under the business-to-business (B2B) SEPA scheme (SEPA IDD B2B) –
designed for the processing of SEPA direct debits under the business-to-business (B2B) SEPA
scheme within the country.
With the establishment of the SEPA EDD CORE and SEPA EDD B2B systems a system for processing cross-border
SEPA direct debits was set up enabling the banks to ensure cross-border accessibility within the basic SEPA EDD
CORE scheme to comply with legal requirements, and the business-to-business SEPA scheme (SEPA EDD B2B).
With the establishment of the systems for processing domestic SEPA direct debits (SEPA Internal Direct Debit
CORE – SEPA IDD CORE and SEPA Internal Direct Debit B2B – SEPA IDD B2B) two new payment systems were set
up for which Bankart had to – separately for each payment system and in compliance with the provisions of the
Payment Services and Systems Act (ZPlaSS) – acquire, on behalf of the banks, the authorisation from the Bank of
Slovenia for establishing a payment system and, in its own name, the authorisation for performing the payment
system management services.
The setting up of the abovementioned SEPA (payment) systems for processing SEPA direct debits has enabled
the payers to settle their obligations to the recipients of payments from the entire SEPA area based on an
authorisation by the payer to the recipient to perform a SEPA direct debit, whereas the recipients of payments
can, based on appropriate authorisations, perform SEPA direct debits to the accounts of the payers from the
entire SEPA area.
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Participants in the SEPA IDD CORE system:
Abanka Vipa d.d., Banka Celje d.d., Banka Koper d.d., Banka Sparkasse d.d., Banka Slovenije, BKS Bank AG,
Delavska hranilnica d.d., Deželna banka Slovenije d.d., Gorenjska banka d.d., Hranilnica Lon d.d., Hranilnica
Vipava d.d., Hypo Alpe-Adria bank d.d., Nova kreditna banka Maribor d.d., Nova Ljubljanska banka d.d., Poštna
banka Slovenije d.d., Probanka d.d., Sberbank banka d.d., SKB banka d.d. and UniCredit Banka Slovenija d.d.
Participants in the SEPA IDD B2B system:
Abanka Vipa d.d., Banka Celje d.d., Banka Koper d.d., Banka Slovenije, Gorenjska banka d.d., Hypo Alpe-Adria
bank d.d., Nova kreditna banka Maribor d.d., Nova Ljubljanska banka d.d., Probanka d.d., Sberbank banka d.d.
and UniCredit Banka Slovenija d.d
Participants in the SEPA EDD CORE system:
Abanka Vipa d.d., Banka Celje d.d., Banka Slovenije, Banka Sparkasse d.d., BKS Bank AG, Delavska hranilnica
d.d., Deželna banka Slovenije d.d., Gorenjska banka d.d., Hranilnica Lon d.d., Hranilnica Vipava d.d., Hypo
Alpe-Adria bank d.d., Nova kreditna banka Maribor d.d., Nova Ljubljanska banka d.d., Poštna banka
Slovenije d.d., Probanka d.d., Sberbank banka d.d. and SKB banka d.d.
Participants in the SEPA EDD B2B system:
Abanka Vipa d.d., Banka Celje d.d., Banka Slovenije, Gorenjska banka d.d., Hypo Alpe-Adria bank d.d., Nova
kreditna banka Maribor d.d., Nova Ljubljanska banka d.d., Probanka d.d. and Sberbank banka d.d.
Note: Factor banka stopped providing payment transactions on 01/07/2014 and consequently exited all SEPA
systems in which it participated.
E-Invoice System processing
In the past Bankart established the E-invoice System which enables exchange between the senders and the
recipients of electronic invoices. The establishment of a single E-Invoice System in Bankart enables the clients of
banks and the Public Payments Administration of the Republic of Slovenia (UJP) to efficiently exchange electronic
documents.
The E-Invoice System is designed so that the received electronic documents are processed by the central
processor, i.e. Bankart, every day in five daily clearing cycles and features the option of subsequent upgrading of
functionalities, such as exchange of other electronic documents related to the issuing and receiving of e-invoices.
The establishment of the E-Invoice System brings considerable savings in the handling and postal costs, simplifies
the existing invoice exchange processes in companies and receipt by consumers, while also facilitating
environmentally friendly operations.
Bankart generates a Register of E-Invoice Issuers for the banks and the UJP, listing all companies that enable their
clients to receive electronic invoices.
By establishing the E-Invoice System Bankart expanded its processing services to the area of electronic invoice
exchange. On 1 December 2014, BKS Bank AG was included in the E-invoice system. Thus, the participants in the
E-Invoice System include all banks operating in Slovenia (except for Hranilnica Vipava d.d., (which announced its
inclusion for 05/01/2015) and the Bank Association) and the Public Payments Administration of the Republic of
Slovenia (UJP).
Banks using the E-Invoice System:
Abanka Vipa d.d., Banka Celje d.d., Banka Koper d.d., Banka Sparkasse d.d., BKS Bank AG, Delavska hranilnica
d.d., Deželna banka Slovenije d.d., Gorenjska banka d.d., Hranilnica LON d.d., Hypo Alpe-Adria bank d.d., Nova
kreditna banka Maribor d.d., Nova Ljubljanska banka d.d., Poštna banka Slovenije d.d., Probanka d.d.,
Raiffeisen banka d.d., Sberbank banka d.d., SKB banka d.d., UniCredit Banka Slovenije d.d. and the Public
Payments Administration of the Republic of Slovenia (UJP).
Note: Factor banka stopped providing payment transactions on 01/07/2014 and consequently exited the Einvoice system.
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ATM and POS terminals management
Bankart has recently received several requests of banks for the offer in the area of POS terminal and ATM
outsourcing. This trend is widespread in the region. Bankart shall align business conditions with the interested
banks and local suppliers of ATMs and POS terminals, and agree on the conclusion of contractual relationships.
With the introduction of this business relationship, Bankart expanded its range of services also with the option
of leasing and managing ATM network, leasing and managing POS network, similarly to certain other competitive
processing centres.
With the new service, the bank is offered the option to reduce some internal workload in terms of managing the
ATM and/or POS network, namely daily operation as well as provision of compliance with the mandates of
MasterCard and Visa.
Additional areas of Bankart’s operations – support functions
With the aim of providing a complete range of products and services, Bankart also implements a series of
support functions such as:
 the POS service tasked with preparing, installing, servicing and maintaining of POS terminals,
 the Call Centre for holders and vendors,
 resolving of financial complaints,
 fraud detection and prevention,
 drawing up of reports for the Bank of Slovenia, international card systems etc.
Bankart supervises and manages the POS terminal network round the clock 365 days a year! According to the
Bank of Slovenia, there were 32,881 POS terminals in Slovenia as at 31/12/2014. Bankart provides processing
services for 16,288 POS terminals (of which, Bankart carries out only parametrisation in the authorisation
environment for 1,460 POS terminals), representing a 50% market share in Slovenia. It has also expanded its
operations to SE European markets. Bankart provides all support functions to the banks in Slovenia, whereas to
the banks in the SE European markets it renders all services except installation, servicing and maintenance of
POS terminals.
As at 31/12/2014 the POS network of Bankart included 25,488 POS terminals, of which 16,288 in Slovenia and
9,200 in SE Europe. POS terminals in Bankart's POS network are adapted to accept cards with chip technology
(EMV), international card products (Maestro, MasterCard, Visa, American Express, Diners) and various local card
products (Karanta, BA, Activa, Zegin).
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The Company’s orientations
Mission
Bankart's fundamental mission is to provide reliable, safe and cost-efficient processing of transactions involving
various bank payment instruments. Moreover, its mission is to enable all clients – through careful development,
building and maintenance of an appropriate information environment – to use Bankart services in an on-going
and high-quality manner.
Vision
Bankart’s vision is aimed at searching for new opportunities and challenges in the SE European region. We wish
to organise and empower our Company so that it can cope with all challenges arising from the market laws and
the contemporary competitive environment.
Objectives
The Company’s objective is to strengthen its position of the top Slovenian processing centre, by providing highquality and state-of-the-art technological services, and thus become one of the leading international processing
centres in the region.
Business policies
The Company’s business orientations are based on constant development and technical perfection, compliance
with the wishes and needs of banks and other financial institutions, implementation of development trends in
the field of contemporary payment transactions and implementation of the requirements of international card
organisations. The basic objective is further constant growth and independence, which Bankart achieves through
the following long-term goals:
 develop new activities and provide a comprehensive service range,
 streamline operations and continuously boost operating efficiency,
 further develop the integral information system and in-house communication infrastructure,
 promptly adjust the personnel and organisational structure to the market conditions and new
technologies,
 increase the Company's visibility in a broader social environment,
 continuously expand the volume of operations.
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Managing Director’s report
The profit created in 2014 amounts to EUR 1,988,433, as a result of successful expansion of operations,
facilitating the Company’s adequate growth and development and its capital structure in compliance with the
requirements of the Bank of Slovenia, which functions as the regulator of Bankart as a payment transaction
administrator.
Operations
In 2014 Bankart invested EUR 2,641,000 (the Company regularly monitors the realisation of the invested funds
based on concluded agreements), which accounts for 12% of the Company’s total revenues. The bulk of
investments are projects. In compliance with the strategic orientations, work on the following projects was
successfully completed in 2014:
Selection of software for ATM supervision
New programme solutions have been implemented in the scope of the project for ATM supervision which
improved control and facilitated development and offer of new products and services. In the first phase of the
project, the existing solution Thor was replaced and in the second phase, additional functionalities have been
implemented, namely the services using the software agent installed at the ATM.
New POS service application
Larger number of POS terminals, larger scope of work, need for new functionalities, better quality of exchange
and faster access to required information are the reasons for replacing the application for managing POS service.
At the tender, Bankart selected the »TManage« solution provided by Asseco SEE. The replacement of the POS
service management application is a big project which was carried out in five phases. The solution is now in
production but further development and adaptations are still underway due to constant changes in the area of
POS operations (introduction of new banks, changed ownership of devices, etc.).
Establishment of separate systems for SEPA IDD/EDD (CORE and B2B)
The aim of the project is to provide support for the provision of services as aligned between the participants in
individual (payment) systems, which resulted in the implementation of a technological separation of the
functioning of SEPA IDD and SEPA EDD systems, and the upgrading of operation of individual systems with new
functionalities. The project comprised the arrangement of the legal basis and the technical basis for the
separation of the functioning of SEPA IDD and SEPA EDD systems.
Migration of the SEPA EKP (external credit payments) processing from the Bank of Slovenia's environment to
Bankart's environment
The key objectives of the project were: more efficient control of the operation of the SEPA EKP system, simplified
and optimised management of the SEPA EKP system, lower costs of processing for the participants in the SEPA
IKP system and centralised processing.
Replacement of firewalls
The company's internal and external firewalls connecting all the segments of the production and testing network
of the company's information system have been replaced, since the equipment manufacturer's support expired
last year. The goal of the project - reduced complexity of firewall management by means of virtualisation and
accordingly reduced amount of devices and maintenance costs - has thus been achieved. The project was
implemented in three major steps, with the replacement of the key parts of the infrastructure so as to minimise
the impact on the company's operations.
NLB merchant statements Portal
By establishing the portal for the distribution of merchant statements (NLB merchant statements Portal),
electronic statements can now be distributed for merchants not using the on-line bank. The portal can be used
to access all statements of transactions on their POS terminal, which were previously sent to them in paper form.
The portal enables viewing, printing and transfer of statements to the user's workstation. The project was
completed on 19/05/2014.
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Merchant statements Abanka - Phase 1
In the scope of the project, merchant statements were redesigned for Abanka and the option was provided to
file them in PDF form in the electronic archive of the company Microcop, and a solution was created for the
distribution of statements in the form of a website - Abanka merchant portal. The project was split into two
phases, namely: transformation of daily statements and establishment of the portal (Phase 1) and redesign of
monthly and annual statements (Phase 2). Phase 1 of the project was completed by 11/12/2014.
RA Management
The RA Management was carried out as internal project in the area of managing certificates for the access to
Bankart's web applications. Introduction of the solution in general brought faster allocation of accesses to users
and safer distribution of passwords.
Introduction of tools for supervising suspicious transactions (Pro Active Risk Management (PRM) Real Time
(RT))
A workshop was organised with the banks participating in the pilot testing to agree on the rules to be used by
them in the RT mode of PRM operation. The rules defined in the NRT mode have been defined with the purpose
of monitoring results. Based on obtained results, an analysis will be conducted with the aim of establishing the
efficiency of defined rules in detecting abuses.
Renewal of the certificate of compliance of the company's operations with the PCI DSS standard
To ensure compliance with the Payment Card Industry Data Security Standard (PCI DSS), Bankart was awarded
the certificate of compliance with PCI DSS Standard, ver. 1.2., for the first time in 2011 in the framework of the
external PCI DSS verification. The introduction of this standard increases the level of security, maintains
confidence, protects against loss events (abuses) and, consequently, prevents financial losses and loss of
reputation. Thus, the Company fulfilled the condition to continue with the processing of transactions performed
by MasterCard and Visa cards. Compliance with the standard is requested in all areas; it is verified and renewed
every year, through own assessments and those by certified assessors. Since 2012, Bankart has successfully
passed all annual checks and renewed the certificate of compliance with the PCI DSS standard. This means that
from the time of obtaining the certificate in 2011 until today, Bankart has been operating in accordance with the
requirements of the PCI safety standard, which has become a standard operation mode.
Renewal of the ISO/IEC 20000:2011 certificate
Bankart also renewed the ISO/IEC 20000:2011 certificate which stands for professionalism and focus on the
quality of performing the company's activity. Ensuring compliance with the ISO/IEC 20000:2011 standard enables
efficient management and implementation of the information technology processes and ensures a controlled
and coordinated provision of services to the internal users and final buyers (banks).
Development of the support of different solutions for purchasing in instalments
Bankart developed solutions enabling the clients of individual holding the relevant payment cards banks to
purchase in instalments.
In co-operation with the NLB, support was developed in the past which enables the NLB's clients, holders of
MasterCard, Visa and/or Karanta cards, to make purchases and pay in up to 12 equal instalments at the bank's
points of sale. When a purchase is made, the currently available balance on the card account is checked and if
the amount of the purchase does not exceed the card limit, the payment if approved and the amount split into
the selected number of instalments. Bankart implemented the same solution for payment in instalments also for
the clients of NLB banka Tuzla, holders of MasterCard payment cards.
For banks that do not have their own points of sale, Bankart developed the solution of purchase in instalments
via SMS. At the moment, the service developed is available to the clients of Abanka and Delavska hranilnica. The
solution allows the holder of the relevant payment card to receive an SMS, after making a payment, to their
mobile phone; in the specified period after making the purchase, they must reply to this message by sending a
reply in which they choose the number of instalments (2 to 12). In Abanka, the service is available to the holders
of Visa Electron instalment credit card and in Delavska hranilnica to the holders of MasterCard deferred payment
card.
Development of support for cash withdrawal at ATMs in instalments
In co-operation with NLB Tutunska banka, Bankart developed the support allowing the holders of Diners
Macedonia payment cards to make cash withdrawals at the NLB Tutunska banka ATMs in instalments. This means
that the user enters the amount and the number of instalments in the ATM, when making the withdrawal. The
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cash is issued immediately and the amount debited to the account of the user of the service in the specified
number of instalments.
Development of contactless payment support
Last year, Bankart developed the support for contactless payment in co-operation with the NLB - this is a simpler
and faster method of paying with a payment card that only needs to be leaned to the device to activate the
procedure. Contactless payment is available to the users of NLB MasterCard cards with an additional chip for
contactless payment, at the points of sale with POS terminals equipped with new readers for contactless
payments. The project was carried out in two phases. In the first phase, Bankart upgraded the NLB's POS network
with the new readers that support contactless payment and in the second phase, the cards with an additional
chip for contactless payment were upgraded and supported.
Introduction of automatic cash deposit at Banka Celje ATMs
Bankart developed the service of automatic cash deposit at ATMs in cooperation with Abanka. In the past years,
this solution was offered by the NLB, SKB and UniCredit banka Slovenije to their clients, in 2013 also by Nova
KBM, and in July 2014, Bankart also enabled Banka Celje to offer this service to its clients. The clients of the
abovementioned banks – holders of BA Maestro or Activa Maestro debit cards – can use this service on the
designated ATMs of their home bank.
Introduction of UPN payment via ATMs for Delavska hranilnica
Payment of universal payment orders (UPN) via ATMs has been introduced some time ago; it allows the users to
immediately receive the slip confirming the payment of the UPN, it is available 24 hours a day, 365 days a year,
without having to visit a bank counter and without the need for assistance by a bank employee. In the past years,
Nova KBM, Abanka, NLB, Banka Celje, Raiffeisen banka, Gorenjska banka, SKB and Unicredit banka Slovenije
offered this service to their clients. In October 2014 Bankart enabled Delavska hranilnica to offer the service of
paying UPNs via ATMs to its clients. It is the business policy of each individual bank, the card issuer which supports
the service of paying by UPNs at ATMs that determines at which ATMs its clients can perform the service in
question. Clients with accounts opened at several banks can pay by UPNs at the ATMs of their home bank as well
as other banks providing this service, while others can only pay using these UPNs at ATMs owned by their bank.
Introduction of the SRM (simple risk management) services
In the past, Bankart launched the SRM (simple risk management) blocking service for SKB banka and in 2014 also
for NLB banka Tuzla. The service allows the banks to adopt fast and flexible measures related to limiting and
prevention of abuses in the case of card abuse. The basic functionality of the service is that it restricts the
authorisation for a specific type of transactions performed by the bank's clients. The advantage of this service
reveals itself in the case of skimming at an ATM where a large number of the bank's payment cards is involved.
In such a case it is not necessary to immediately block the cards and order new, which is an additional unplanned
cost for the bank, as the bank can decide to restrict specific types of transactions on selected cards.
Integration of BKS bank AG in the E-invoice system
In cooperation with banks, Bankart in 2011 established a single E-invoice system enabling the participating banks
to send and receive electronic invoices to and from their clients using their own solutions (e.g. electronic banking
services). Upon the establishment of the E-invoice system most banks operating in Slovenia joined it. At the end
of last year, on 1 December 2014, BKS Bank AG was included in the E-invoice system. The E-invoice system thus
includes all banks and the Public Payments Administration of the Republic of Slovenia (UJP) except for Hranilnica
Vipava d.d., (which announced its inclusion for 05/01/2015) and the Bank Association.
Takeover of the management of the ATM network and/or the network of a bank's POS terminals
(outsourcing of ATM and/or POS network from a bank to Bankart)
In June 2014, Bankart took over the management of the network of POS terminals of Nova KBM, in July 2014 the
network of ATMs of Nova KBM and in December 2014 Abanka's POS terminal network. By taking over the
management of the ATM and/or POS network, Bankart offers a bank the option to reduce some internal
workload in terms of managing the ATM and/or POS network, namely daily operation as well as provision of
compliance with the mandates of MasterCard and Visa. With the introduction of this business relationship,
Bankart expanded its range of services also with the option of leasing and managing ATM network, leasing and
managing POS network, similarly to certain other competitive processing centres.
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Continued operations on the SE European markets
In 2014 we successfully continued with our work in the SE European markets where we cooperate with NLB
Banka d.d., Tuzla (BiH), BpB Prishtina and NLB Prishtina (Kosovo) as well as NLB Tutunska banka AD Skopje
(Macedonia).
Bankart processes Maestro, MasterCard and VISA card products for NLB Banka d.d., Tuzla (BiH), in terms of both
card and ATM operations, as well as provides processing services for POS terminals accepting Visa and
MasterCard card products. For NLB Prishtina (Kosovo) it performs the processing of Maestro, MasterCard and
Visa card products, in terms of both card and ATM operations. For BpB Prishtina (Kosovo) it performs the
processing of Visa card products, in terms of both card and ATM operations. For NLB Tutunska banka AD Skopje
(Macedonia) Bankart performs, in terms of card operations, processing of Maestro, MasterCard, Visa and a local
card product (Zegin) and, in terms of ATM operations, processing of Maestro, MasterCard, Visa, Diners, Amex
and a local card product (Casys) as well as, in terms of POS-terminal operations, processing of Maestro,
MasterCard, Visa, Diners, Amex and a local card product (Zegin).
Expansion of operations to Serbia (establishment of business relationship with NLB banka a.d. Belgrade
In November 2014, Bankart started co-operating with NLB banka a.d. Belgrade (Serbia), for which it provides the
service of processing MasterCard and Visa card products in the area of ATM operations, and the processing of
the local card product Dina, both in terms of card and ATM operations.
All card products processed by Bankart have installed chip technology. All ATMs and POS terminals processed by
Bankart have been adapted to enable the use of chip technology.
Forecasts
Besides those projects which were not completed in 2014 Bankart will carry out the following in line with its 2015
Business Development Plan:
Upgrading SEPA IKP/EKP and SEPA IDD/EDD under mandates
Based on the changes to the SEPA regulations and the implementation guidelines these changes will be published
in the first quarter of 2015 and they will serve as the mandates for the development or upgrading of the SEPA
systems in the framework of the SIMP infrastructure in 2015. The said changes will dictate development in the
framework of the solutions for the SEPA systems in the SIMP framework as well as the development on the part
of the agent bank and the settlement agent (Bank of Slovenia). After the internal review, the required changes
in the solutions on the part of the Bank of Slovenia ad in the SEPA systems in the SIMP framework on the part of
Bankart will be aligned (aligned offer with the Bank of Slovenia and aligned set of changes with the solution
supplier - Halcom). After the completion of the development, integral testing will be perform in co-operation
with the banks (participating in the systems), followed by the transfer into production. The implementation of
the upgrades of the SEPA (payment) systems arising from the mandates (on the part of Bankart and the agent
bank Bank of Slovenia) shall guarantee compliance of operations with the SEPA regulations and consideration of
the implementation guidelines. Software optimisation reduces the possibility of errors in the alignment of
collaterals provided for settlement, simplifies the procedures of SEPA EKP system management and automates
the production of statistical reports for the participants in the SEPA EKP system.
Introduction of strong authentication for internet purchasing - SMS OTP
The SMS OTP solution, based on the Recommendations For The Security Of Internet Payments of the European
Central Bank (ECB) (considered as mandate by individual banks) which cover various aspects of the security of
internet payment operations is to be introduced by banks on 01/02/2015. This enables the banks to ensure
compliance of operations with the ECB recommendations, increase the security of the use of on-line shopping
service, accordingly reduce the possibility of abuse and improve the user experience in the use of the service.
Development of new functionalities in the management of debit cards and the functionalities for managing
risks in card operations
With the aim of providing to the banks a more flexible option of managing risks related to card issuing and smooth
introduction of contactless technology, support is planned to be developed that will enable the banks to set limits
for the use of contactless cards in the on-line mode without verification of the holder. Support will be provided
for the introduction of monthly limit considering the type of transaction (ATM, POS, E-commerce) for cards with
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immediate payment on the authorisation system and the so-called "floating limits" which allow for the limitation
of card use in a specific period (last 24 hours, another interval) and are not linked to any other previous limitation
(one day, from 00 to 24).
The Regulation on interchange fees for card-based payment transactions
The Regulation on interchange fees for card-based payment transactions was being supplemented and aligned
during the year by the bodies of the European Commission. The Regulation has not yet been adopted and no
deadlines for the application of the changes have been announced. In spite of that, Bankart expects to be able
to agree in 2015 on a harmonised interpretation of individual parts of the regulation, in co-operation with the
banks, and start with the development of individual segments even before the publication of the regulation;
namely those expected to be included in the adopted new regulation, thus reducing the potential risk of default
in the implementation of the regulatory requirements.
Server platform, disk systems and personal computers
In the area of server and disk systems and personal computers, Bankart plans to increase the disk capacities of
the archive environments, establish a virtualisation platform for Microsoft Windows servers with MS SQL
databases and upgrade the existing virtual servers, extend the agreement on Microsoft software licensing,
upgrade the server infrastructure of the E-invoice system, upgrade the memory and processors of the
authorisation system, extend the agreement on maintenance and elimination of defects in the Microsoft
platform as well as purchase and upgrade the software and information system control licences, replace the
server equipment of the file transfer system Connect:Direct for the exchange of data with the banks and upgrade
of the equipment for safe storage of encryption keys on the authorisation system Tandem. Thus, we will ensure
sufficient disk capacities in individual environments, sufficient server capacities for the implementation of the
services, licence adequacy of used software, uninterrupted work process and continuous provision of the
services.
Communication networks of the company
As regards our communication networks, we plan to upgrade the access network of the Company for the
connection of external networks and the connection network for connecting the user and server segments to
ensure a sufficient number of connections and adequate bandwidth for connecting devices to the Company's
central network. The upgrade of the central routers of the BNet network shall ensure sufficient capacity and
adequate bandwidth for the provision of the Company's services. The upgrading of the production
communication hub which supports POS terminals will ensure appropriate capacities of the communication hub
in the latest equipment of the manufacturer. The replacement of the communication cabinets and distribution
systems at the Company's primary location will provide the room for the installation and connection of devices
and the stability of the Company's network operation. The ACE load distributor which distributes the ATM and
authorisation connections to the authorisation system of the Company shall be replaced due to terminated
support of the equipment manufacturer. Upgrade the capacities of the DWDM transmission system for
connecting the primary and the secondary location of the company's information system to the transmission
capacity of 40GBps to ensure sufficient band width for network connections and transmission of data between
the systems on two locations.
Upgrading testing of Oracle software
In the area of credit card management system (CMS) and card personalisation (Cardiss),
the testing of the base changes and the changes in the operating system will be accelerated and the
implementation of technical testing for the upgrade will be optimised.
Upgrading testing of WEB software
In the area of card management (CMS), the testing of changes on the WEB interface and the testing of functional
changes shall be accelerated and stress testing shall be provided.
Monitoring and analysing the making of SQL inquiries on ORACLE infrastructure
The following needs were perceived in the area of credit card management system (CMS) and card
personalisation (Cardiss), tools shall be introduced for the monitoring and analysis of the functioning of the SQL
inquiries.
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Software for supervising the central authorisation system
In the area of central authorisation system, the use of the automated system for the control of the performance
and bottlenecks on the system ((XPNET Manager by Prognosis, …) shall be introduced.
Imperva upgrade
Due to insufficient capacity, the existing Imperva system shall be upgraded with the latest hardware and software
solutions, and connected to the SAN disc system. The use of the system shall be expanded to the keeping of the
audit trail for the Oracle data servers, the DB2 data servers and the Sharepoint servers. The analysis and potential
introduction of the central FAM (File Access Monitoring) system shall be conducted.
Business and financial report
The assets, liabilities, financial position and business result of the Company are presented according to the
principle of true and fair presentation.
The basic principles pursued by the Company in financing are chiefly the principle of matching the maturity of
assets with that of liabilities, along with the principles of profitability and liquidity.
The Company’s objective is to generate profit which, in the long run, ensures growth and development and the
appropriate structure in compliance with both the Financial Operations of Companies Act and the requirements
and regulations of the Bank of Slovenia.
The risks relating to the financial operations of companies in general (liquidity, interest rate, currency, credit and
other market risks) at Bankart are not significant. An ever more important risk is the impact of the measures
taken by the banks on Bankart’s revenues. By changing their operations as regards card, ATM and POS
transactions, for example by terminating the possibility of account balance inquiry for clients of other banks or
by charging a commission for ATM cash withdrawals made by clients of other banking groups, they can have a
considerable impact on the revenues earned by Bankart.
Realised investment activity of the Company
Table 1: Overview of investments in 2014
(in EUR)
Realised in 2014
Intangible assets
- software
- licences
244,000
768,000
Property, plant and equipment
- hardware
- other equipment
1,550,000
79,000
TOTAL
2,641,000
In 2014, the following projects in the area of technology and information technology from the past years have
been completed:
Implementation of the new supervision tool for IP ATMs, the goal of which is to simplify or automate certain
aspects of ATM management for banks.
Transition to the new central authorisation system, since the life cycle of the existing central authorisation
system Base 24 was about to expire and the development was terminated.
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Introduction of the ATM service “Transfer of funds between accounts” - bank clients will be able to use the new
service on ATMs 24 hours a day, all days in a year, which will enable the banks to maximise the use of the existing
ATM network.
Introduction of the PRM Real Time (RT) functionality - by using predefined rules and parameters in PRM RT, a
bank will have the option of preventing suspicious transactions with the cards of their users and suspicious
transactions by their holders, since PRM RT will participate in the process of authorisation and approve/reject
the transaction on the basis of applicable rules.
Introduction of contactless payment (in the areas of card issuing and acceptance) - the primary goal of this
development task is to provide support and carry out the necessary certification to introduce a contactless chip
for card business (issuing) and introduce infrastructure for merchants – POS terminals (acquiring) enabling the
use of contactless cards.
Activation or ordering of services through ATMs as a safe authentication channel accessible to all clients of the
bank - technological support was to a large extent developed and, in certain parts of Bankart's information
system, transferred to the production environment (but not in use yet).
Inclusion of Visa debit cards in the ATM Settlement payment system - several banks did not decide to include
Visa debit cards into the payment system, therefore the realisation of the project will be continued as bilateral
agreements among banks with processing support from Bankart.
Server platform, disk systems and personal computers - the establishment of the virtualisation platform in the
area of Microsoft Windows servers with the MS SQL databases was successfully completed.
Communication networks of the company - the company's internal firewall network was successfully upgraded.
Last year, the following activities from the company's Business development plan for 2014 were implemented:
Upgrading and optimisation of the SEPA systems in the framework of the SIMP and E-Invoice system
In 2014, each individual SEPA system in the SIMP framework underwent various types of upgrading and
optimisation asked for via business requests by banks and/or Bankart. The most significant change will be the
separation of the technical solution for the SEPA IDD/EDD CORE and SEPA IDD/EDD B2B systems. Also in 2014, a
payment system was introduced in the scope of which different services (payment systems) are implemented
following the sample of the STEP2-T payment system. The so-called consolidation of payment systems represents
the possibility of reducing costs paid by the banks for the settlement of net cash receivables and liabilities of the
participants in the payment systems in the TARGET2 payment system. Migration of the SEPA EKP system from
the Bank of Slovenia environment to Bankart was also a major project in 2014.
In the area of E-Invoice, the activities of devising a modified business model were carried out, but the bulk is
being transferred to 2015.
Implementation of MasterCard and Visa Mandates
The required mandatory changes of MasterCard and Visa were in 2014 successfully implemented on the
authorisation system and card management.
Setting up of solution for targeted sales of banking services at ATMs
A technical solution was set up that allows for a focused sale of individual services to the banks' users. The
solution allows for the relevant services to be offered only to individual users or groups. Thus the banks will be
able to offer their services in a targeted manner and use ATMs as a channel for marketing their services. The
solution will also enable connections to the CRM systems of the bank.
Adaptation to the regulation proposal on the amount of interbank fees and the so-called Visa Commitments
Last year, this task was not handled as a development project yet because the legislation in this area had not
been adopted. The banks' business requirements have been defined and an analysis performed.
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Server platform, disk systems and personal computers
The capacities of the disk systems supporting the SIMP and CMS business systems were increased, disk capacities
for storing archived data were set up, the agreements on Microsoft software licensing were extended, the
equipment for upgrading the E-Invoice and CMS systems was purchased and the authorisation system hardware
was upgraded. Some personal computers were obsolete and therefore replaced.
Communication networks of the company
Equipment was purchased for upgrading the central network and the equipment for the redesign of the POS
communication node was also purchased after the implemented testing of the appropriateness. The equipment
of the connecting network used for connecting with the networks of the users of the services was replaced and
the security equipment was upgraded.
Risk management
Currency and interest rate risk
Given the volume of capital and low indebtedness level, the exposure of the Company to interest rate risk is
minimal. The interest rate risk exists owing to the scope of loans, however, the Company is granted loans under
favourable lending conditions due to good credit rating. Loans raised are in a domestic currency linked to
EURIBOR.
The Company is exposed to currency risk and the risk of loss arising from unfavourable changes in the exchange
rate. This risk arises from payments of obligations abroad. The Company does not have any classical hedges for
currency risk management, i.e. receivables denominated in foreign currency. Forward transactions are not
conducted on account of opportunity losses.
Credit risk
There are no transactions which might entail credit risk for the Company and thus financial loss, which represents
the risk of a business partner failing to discharge their obligations under an agreement on financial instrument.
Liquidity risk
The Company manages liquidity risk and solvency risk by harmonising the maturity of receivables and liabilities,
and by monitoring cash flows. The Company regularly pays its obligations and has no liquidity problems.
Risk management refers to minimising risks. The management of the Company estimates that financial risks are
present, however, due to the structure of its assets and liabilities, the exposure is low.
Operational risk
Operating risk is the risk of generating loss, including the information and legal risk that might arise because of
the following circumstances:
 inadequacy or inaccurate implementation of internal processes,
 other irregular actions of people that are part of the internal sphere of a legal entity,
 inappropriateness or incorrect functioning of the systems that are part of the internal sphere of a legal entity,
or
 external events or actions.
Operational risks include those arising from:
 the functioning of infrastructure (hardware, software and communications equipment),
 actions of the employees (know-how, skills, motivation, substitutability of staff, etc.),
 functioning of processes (adequacy of processes and controls, setting of goals, composition and clarity of
processes),
 functioning of systems (safety, availability, adequacy of information technology and premises),
 environmental impact (unwanted or unexpected changes, crime, accidents, extraordinary events),
 legal risks (violation of or non-compliance with the laws, implementing regulations, instructions,
recommendations and concluded contracts).
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The management of operational risks is a significant element of the Company’s performance and is included in
all its business processes, thus being a permanent task of all the employees in Bankart. For this purpose, an
appropriate policy was set up to identify, measure, keep and manage operational risks as were the instructions
for monitoring operational risks and reporting on incidents and losses.
The review of the results of the risk analysis that was conducted in 2014 in the business processes of Bankart
showed that, although most business processes have a high or medium inherent risk, Bankart with its systematic
approach to the establishment, maintenance and supervision over the appropriateness and efficiency of the
control environment manages the risks in the manner that operational risks have become low, which is also
confirmed by the analyses of recorded incidents and loss events. By all means we will carefully monitor the
operational risks in the future and continue to improve efficiency, effectiveness and cost optimisation of the
control system to ensure lower exposure of Bankart to operational risks.
Personnel and the organisation
As at the end of 2014, Bankart had 195 staff, all of whom were permanently employed. There were 191
employees on average in 2014.
Fluctuation
The number of employees rose by 7 or 3.58% compared to the preceding year. The staff turnover rate stood at
3%, down 5.7% on the previous year.
Chart 10: Number of employees by year
Number of employees
210
200
190
180
170
160
150
140
130
120
110
100
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
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2014 Annual Report
Bankart d.o.o.
Educational structure of employees
Chart 11: Educational structure of employees
Educational structure of employees
100%
80%
60%
40%
20%
0%
2014
2013
2012
2011
V.
2010
2009
VI.
2008
VII.
2007
2006
2005
2004
2003
2002
2001
2000
nad VII.
IV.
Level of education
II.
IV.
V.
VI.
VII.
VIII.
Number of employees
1
3
78
20
89
4
The average age of the employees compared to the preceding year increased from 40 to 41 years. A downward
trend was observed in the share of female employees. In the last ten years, their share has fallen from 54% to
40%. The Company's sick leave level in 2014 was 4.43%.
Promotion
In the past years we have successfully participated in the 'Literacy Promotion' and 'Digital Literacy' projects for
general non-formal education of adults in the area of promotion of the advantages and usefulness of an ATM
and SMS. The 55+ population is among our largest target publics for which we organise presentations and
workshops where the participants use an ATM in a web classroom that was established on Bankart's websites
last year. They visit an ATM in virtual environment, using a simulator, and perform transactions. Thus they learn
about the services offered by ATMs, are no longer afraid to use ATMs, get to know the benefits of the use and
get instructions for a safe use of ATMs.
In the period of intensive pre-New-Year shopping, we carried out an active promotion campaign for the SMS
Alert service on the networks of digital displays of all city buses in Slovenia, in all branch offices of Pošta Slovenije
and on the screens in the Parking garage at Trdinova in Ljubljana. Because of the data from the research showing
a 30% increase in the use of bus rides in Ljubljana since 2009 (as a result of recession, changed organisation of
the city of Ljubljana arranged additional parking spaces, etc.) the campaign of promoting the SMS Alert message
in the pre-New-Year time on the screens of the LPP Ljubljana buses will continue in 2014. The data that the
branch offices of Lekarna Ljubljana monthly issue 283,289 invoices (data for Sept. 2014), that there are between
7,000 and 10,000 monthly users of the lifts in the Chamber of Commerce and Industry of Slovenia, approximately
9,000 visitors to the premises of the sports centre Sportclub at the Faculty of Sports in Ljubljana, a growing
number of visitors to the furniture fair Ambient at the Convention Centre (Gospodarsko razstavišče) in Ljubljana
(29,000 in 2013), which include all demographic groups, convinced us to carry out the SMS Alert promotion
campaign also at all these locations.
With the aim of reaching the "computer-infected" population with the promotion of the SMS Alert service, we
established co-operation with the magazine 'Računalniške novice' already in 2013. An article was published in
the special issue of Računalniške novice with the topic of E-banking security. We took a step further in 2014 and
joined the Partner - RN project which offers an innovative approach to the promotion and public awareness
23
2014 Annual Report
Bankart d.o.o.
raising. It allows the partners to independently enter contributions through the editorial system of Računalniške
novice, using different communication channels, merged under the trademark Partner - RN, reaching more than
550,000 users of different media, merged under the Računalniške novice trademark (printed magazine, on-line
portal, newsletter, mobile web portal, Facebook, etc.).
Performance indicators
Indicator
Calculation method
2014
2013
Equity financing rate
equity/liabilities
0.78
0.78
Long-term financing rate
equity + long-term liabilities +
provisions/liabilities
0.85
0.83
0.48
0.55
0.15
0.14
1.63
1.42
Long-term assets rate
Indebtedness rate
Equity to fixed assets ratio
long-term assets/assets
debt/assets
equity/long-term assets
Immediate solvency ratio
liquid assets/short-term liabilities
0.72
0.93
Quick ratio
liquid assets + short-term receivables +
short-term fin. investments/short-term
liabilities
3.41
3.52
Current ratio
short-term assets/short-term liabilities
3.41
3.52
Asset turnover
revenues/assets
1.11
1.14
Profit margin
net profit/revenues
0.09
0.03
Return on assets
net profit/assets
0.10
0.03
Operating efficiency ratio
operating revenue/operating expenses
1.10
1.02
0.14
0.04
Net return on equity ratio
net profit/equity-net profit
SALES PER WORKER
(Sales per Worker)
PRODUCTIVITY
SIZE – TOTAL SALES
(Size – total sales)
VOLUME OF SALES
(in EUR)
22,886,999
119,203
NUMBER OF MONTHS IN OPERATION
12
AVERAGE NUMBER OF EMPLOYEES
AVERAGE NUMBER OF EMPLOYEES
192
based on working hours
184.52
Events after the end of the business year
After the accounting period, no significant events occurred that would have an effect on the financial statements
for 2014.
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2014 Annual Report
Bankart d.o.o.
II. FINANCIAL STATEMENTS WITH NOTES
Statement of management's responsibility
25
2014 Annual Report
Bankart d.o.o.
Auditor's report
26
2014 Annual Report
Bankart d.o.o.
27
2014 Annual Report
Bankart d.o.o.
Financial statements
Statement of total comprehensive income
in EUR
Note
2014
2013
1. Sales revenues
2.1.
22,886,999
21,173,278
22,880,399
21,173,278
420,569
149,405
38,186
54,066
382,383
95,339
10,001,420
8,908,888
331,458
414,730
9,669,962
8,494,158
7,357,735
7,251,189
5,501,093
5,496,645
Revenues from the sales of services
4. Other operating revenues
2.2.
Revaluation operating revenues
Other revenues
5. Costs of goods, material and services
a)
Original cost of goods and material sold and costs
of material used
b)
Costs of services
6. Labour costs
2.3.
2.4.
a)
Wages and salaries
b)
Social security costs
363,784
366,249
Costs of pension insurance
486,721
484,789
1,006,137
903,506
3,391,783
3,358,461
3,379,960
3,335,239
11,664
23,222
159
0
c)
Other labour costs
7. Write-downs in value
a)
Depreciation and amortisation
b)
Revaluation operating expenses related to intangible assets
and property, plant and equipment
c)
Revaluation operating expenses associated with current assets
2.5.
8. Other operating expenses
2.6.
393,255
1,360,810
10. Finance income from loan receivables
2.7.
39,601
45,400
39,601
45,400
4,937
7,266
4,937
7,266
18,873
22,365
18,873
22,365
31,387
16,855
31,387
16,855
15. Other revenues
3
501
16. Other expenses
759
6,013
b)
Financial revenues from loans granted to others
11. Financial revenues from operating receivables
b)
Financial revenues from operating receivables due from
others
13. Financial expenses for financial liabilities
b)
2.8.
Financial expenses for loans received from banks
14. Financial expenses for operating liabilities
c)
2.7.
2.8.
Financial expenses for other operating liabilities
17. Corporate income tax
2.9.
251,052
0
18. Deferred tax
2.10.
82,589
99,387
19. Net profit or loss for the period
2.11.
1,988,433
550,656
-287,678
0
23. Other comprehensive income after tax
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2014 Annual Report
Bankart d.o.o.
Items that will later not be included in the operating result
a) Actuarial net losses for pension reforms
2.11.
-287,678
0
24. Total comprehensive income for the period
2.11.
1,700,755
550,656
Notes to financial statements on pages 33 to 48 are a constituent part of the financial statements and should be
read in conjunction with them.
Balance sheet
in EUR
Note
31/12/2014
31/12/2013
20,918,229
18,678,654
9,983,358
10,232,398
4,513,336
5,258,684
4,204,540
4,945,812
308,796
312,872
4,948,134
4,634,415
Land and buildings
1,370,293
1,522,093
b) Buildings
1,370,293
1,522,093
3,098,392
3,112,322
4. Tangible fixed assets acquired
479,449
0
a)
266,443
0
219,006
0
100,000
0
100,000
0
100,000
0
421,888
339,299
9,627,320
7,458,021
5,200,000
3,500,000
2. Short-term loans
5,200,000
3,500,000
b) Short-term loans granted to others
5,200,000
3,500,000
2,387,100
1,989,812
2,277,031
1,959,019
110,069
30,793
ASSETS
A. LONG-TERM ASSETS
I Intangible assets and long-term deferred costs and accrued
revenues
1.
Long-term property rights
5.
Other long-term deferred costs and accrued revenues
II Property, plant and equipment
1.
1.1.
1.2.
3. Other plant and equipment
b)
IV
2.
Property, plant and equipment under construction or in
production
Advances for acquisition of property, plant and
equipment
Long-term financial investments
1.3.
Long-term loans
b) Long-term loans granted to others
VI Deferred tax assets
1.4.
B. CURRENT ASSETS
III Short-term financial investments
IV Short-term operating receivables
1.5.
1.6.
2. Short-term trade receivables
3. Short-term operating receivables due from others
V Cash
1.7.
2,040,220
1,968,209
C SHORT-TERM DEFERRED COSTS AND ACCRUED REVENUES
1.8.
1,307,551
988,235
20,918,229
18,678,654
16,216,714
14,515,960
2,000,082
2,000,082
2,000,082
2,000,082
676,510
676,510
11,839,367
11,288,712
EQUITY AND LIABILITIES
A CAPITAL
I Called-up capital
1.
Tier 1 capital
II Capital surplus
III Revenue reserves
1.9.
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2014 Annual Report
Bankart d.o.o.
1. Legal reserves
250,768
250,768
11,588,599
11,037,944
-287,678
0
1,988,433
550,656
1,150,930
639,112
1. Provisions for pensions and similar liabilities
957,761
595,472
2. Other provisions
174,968
43,640
18,201
0
320,000
400,000
320,000
400,000
320,000
400,000
2,838,237
2,116,629
80,000
80,000
80,000
80,000
III Short-term operating liabilities
2,758,237
2,036,629
2. Short-term trade payables
1,614,530
1,186,306
5. Other short-term operating liabilities
1,143,707
850,323
392,348
1,006,953
5. Other revenue reserves
IV. Revaluation surplus
VI Net profit or loss for the period
B PROVISIONS AND LONG-TERM ACCRUED COSTS AND
DEFERRED REVENUES
1.10.
3. Long-term accrued costs and deferred revenues
C LONG-TERM LIABILITIES
1.11.
I Long-term financial liabilities
2.
Long-term financial liabilities to banks
D SHORT-TERM LIABILITIES
1.12.
II Short-term financial liabilities
2. Short-term financial liabilities to banks
D SHORT-TERM ACCRUED EXPENSES AND DEFERRED REVENUES
1.13.
Notes to financial statements on pages 33 to 48 are a constituent part of the financial statements and should be
read in conjunction with them.
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2014 Annual Report
Bankart d.o.o.
Cash flow statement
in EUR
2014
2013
5,359,489
3,886,082
23,312,507
21,330,450
-17,784,555
-17,543,755
-168,463
99,387
176,297
840,644
Opening less closing operating receivables
-397,287
135,365
Opening less closing deferred costs and accrued revenues
-315,240
279,855
Cash flows from operating activities
Items of income statement
Operating revenues and financial revenues from operating receivables
Operating expenses excluding depreciation or amortisation and finance expenses
from operating liabilities
Income tax and other taxes not included in operating expenses
Changes in net current assets from balance sheet operating items
Opening less closing deferred tax assets
-82,589
-99,387
Closing less opening operating liabilities
721,607
167,866
-102,788
356,945
5,183,193
4,726,726
3,588,741
1,053,101
49,332
7,701
3,500,000
1,000,000
39,409
45,400
Cash disbursements for investing activities
-8,601,050
-5,295,822
Disbursements for acquisition of intangible assets
-1,098,477
-1,086,104
Cash disbursements to acquire property, plant and equipment
-2,202,572
-709,718
Closing less opening accrued costs and deferred revenues
Net receipts from operating activities (a+b)
Cash flows from investing activities
Cash receipts from investing activities
Receipts from disposal of property, plant and equipment
Receipts from disposal of short-term investments
Interest and dividends received from investing activities
Disbursements to acquire short-term investments
-5,200,000
-3,500,000
Net cash from investing activities (a+b)
-5,012,309
-4,242,722
Cash flows from financing activities
Cash receipts from financing activities
0
0
Cash disbursements from financing activities
-98,873
-131,995
Disbursement related to financing activities
-18,873
-22,365
Cash repayments of long-term financial liabilities
-80,000
-109,630
Net cash from financing activities (a+b)
-98,873
-131,995
2,040,220
1,968,209
Closing balance of cash
Net cash inflow or outflow for the period
Opening balance of cash
72,011
352,010
1,968,209
1,616,199
The cash flow statement was prepared according to the indirect method and consists of two subsequent balance
sheets and data from the income statement.
Notes to financial statements on pages 33 to 48 are a constituent part of the financial statements and should be
read in conjunction with them.
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2014 Annual Report
Bankart d.o.o.
Statement of changes in equity for the period from
01/01/2013 to 31/12/2014
I. Called-up
capital
II. Capital
reserves
III.
Revenue
reserves
Legal
reserves
III.
Revenue
reserves
Other
reserves
IV. Revaluation
surplus
V. Retained
earnings
VI. Net profit
or loss for
the period
VII. Total
equity
2,000,082
676,510
250,768
11,037,944
0
0
550,656
14,515,960
0
0
0
0
-287,678
0
1,988,433
1,700,755
0
0
0
0
0
0
1,988,433
1,988,433
0
0
0
0
-287,678
0
0
-287,678
0
0
0
550,656
0
0
-550,656
0
0
0
0
0
0
550,656
-550,656
0
0
0
0
550,656
0
-550,656
0
0
2,000,082
676,510
250,768
11,588,599
-287,678
0
1,988,433
16,216,714
0
0
0
0
0
0
1,988,433
1,988,433
A.2. Opening balance for the
reporting
period
B.2. Total comprehensive income
from operating activity
Entry of net profit or loss for the
reporting period
Other components of the total
comprehensive income for the
reporting period
B.3. Changes in equity
Allocation of the remaining part of
net profit or loss for 2013
Allocation of net profit to additional
reserves pursuant to the resolution
of the General Meeting
D. Closing balance in the reporting
period
Accumulated profit
Statement of changes in equity for the period from
01/01/2012 to 31/12/2013
I. Called-up
capital
II. Capital
reserves
III.
Revenue
reserves
Legal
reserves
III.
Revenue
reserves
Other
reserves
V. Retained
earnings
VI. Net profit
or loss for
the period
VII. Total
equity
2,000,082
676,510
250,768
10,608,930
0
429,014
13,965,304
0
0
0
0
0
550,656
550,656
Entry of net profit or loss for the
reporting period
0
0
0
0
0
550,656
550,656
B.3. Changes in equity
0
0
0
429,014
0
-429,014
0
Allocation of the remaining part of
net profit or loss for 2012
0
0
0
0
429,014
-429,014
0
0
0
0
429,014
-429,014
0
0
2,000,082
676,510
250,768
11,037,944
0
550,656
14,515,960
0
0
0
0
0
550,656
550,656
A.2. Opening balance for the
reporting
period
B.2. Total comprehensive income
from operating activity
Allocation of net profit to additional
reserves pursuant to the resolution
of the General Meeting
D. Closing balance in the reporting
period
Accumulated profit
Notes to financial statements on pages 33 to 48 are a constituent part of the financial statements and should be
read in conjunction with them.
32
2014 Annual Report
Bankart d.o.o.
Significant accounting policies
Basis for compiling the financial statements
The financial statements contained in this report have been compiled on the basis of Slovenian Accounting
Standards issued by the Slovenian Institute of Auditors, which entered into force on 1 January 2006, and the
Companies Act (ZGD-1). In their compilation the following fundamental accounting assumptions were taken into
account: accrual basis and going concern.
The qualitative characteristics of financial statements and thus entire accounting are above all understandability,
relevance, reliability, and comparability.
The Company does not monitor operations by segment. Financial statements are expressed in euros, rounded
off to full number without cents.
Foreign-currency operating receivables and liabilities are translated into the domestic currency at the mean
exchange rate of the Bank of Slovenia on their date of origin. All receivables, liabilities and cash assets expressed
in foreign currencies are converted into the domestic currency at the exchange rate of the Bank of Slovenia – the
ECB reference exchange rate as at the last day of the accounting period.
Intangible fixed assets, deferred costs and accrued revenues
and property, plant and equipment
Intangible long-term assets include long-term investments in license rights, software rights and long-term
deferred expenses. Items of property, plant and equipment include land, buildings and equipment.
Intangible assets and property, plant and equipment are recognised at cost. This comprises the costs plus all
expenses directly attributable to putting an asset into operation.
The difference between the net sale value and the carrying amount of a disposed fixed asset is transferred to
operating revenues from revaluation, if the former exceeds the latter, or to operating expense from revaluation,
if the latter exceeds the former.
Subsequent expenses related to fixed assets
Costs incurred subsequently on a fixed asset increase its historical cost when they increase its future economic
benefits in excess of the future economic benefits originally estimated. Repairs or maintenance of property, plant
and equipment are intended for renovation or preservation of future economic benefits, expected on the basis
of initially assessed efficiency level of these assets, and are recognised as expenses.
Depreciation and amortisation
The residual value of items of property, plant and equipment and intangible fixed assets is reduced by
depreciation or amortisation. The Company uses the straight-line depreciation or amortisation method.
Depreciation of the items of property, plant and equipment begins on the first day of the month in which the
item has become available for its intended use. An item of property, plant and equipment begins to be subject
to depreciation when it is available for use.
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2014 Annual Report
Bankart d.o.o.
Depreciation or amortisation rates are based on the useful life of the assets and did not change in 2013 compared
to a year before:
Type of fixed asset
Licences
Software
Construction works
Computer equipment
Network equipment
Other equipment
Depreciation or
amortisation rate
10%–25%
10%–20%
5%
10%–50%
10%–25%
20%–50%
The Company verifies annually the appropriateness of the depreciation or amortisation rates. Impairment
indicators are verified and in the case they are identified an impairment test is carried out. We did not establish
any impairment indicators in the current year.
Financial investments
The investment policy follows the principle of safety. Short-term financial investments consist of short-term
deposits with banks, measured at their original cost. Long-term investments consist of long-term deposits with
banks, measured at their original cost. Interest on deposits is recognised in the account as financial revenues.
Receivables
Receivables of all categories are initially recognised at amounts recorded in the relevant documents under the
assumption that they will be collected. The original receivables may later be increased or, irrespective of payment
received or other settlement, also reduced by each amount backed up by a contract. Given advances are
disclosed in the balance sheet in relation to the pertaining items.
Receivables which are not expected to be recovered by the deadline or in full are on the basis of past experience
treated as doubtful or bad debt, and the value adjustment of these receivables is debited against operating
expenses from revaluation. Value adjustment is applied individually.
Receivables are not revalued to reflect the changes in the national currency's purchasing power, unless they are
disclosed in foreign currency and the relevant rate of exchange effective after the initial recognition has changed.
Cash and cash equivalents
Cash comprises ready cash, deposit money and cash equivalents. Ready cash is cash on hand in the form of bank
notes and coins. Deposit money is cash in bank accounts or deposited with another financial institution to be
used for payments. Cash equivalents are highly liquid investments that are readily, reliably and simply convertible
to known amounts of cash. The Company's cash equivalents include call deposits and bank deposits with maturity
of three months.
The carrying amount of an item of cash is the same as its initial nominal value until the need for its revaluation
arises. An item of cash presented in a foreign currency is translated into the domestic currency at the exchange
rate effective on the receiving date.
Revaluation of foreign-currency cash takes place if the exchange rate changes after the initial recognition. The
exchange rate differences which are recorded may result in an increase or a decrease of the initially disclosed
value and represent ordinary finance income or finance expense.
Capital
Total equity consists of called-up capital, capital surplus, revenue reserves, revaluation surplus and previously
undistributed net profit.
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2014 Annual Report
Bankart d.o.o.
Revenue reserves are a portion of net profit dedicated to settlement of future losses and are defined as legal
reserves and other revenue reserves. They are established from net profit of the Company.
Capital surplus is intended predominantly for settling losses. Capital surplus disclosed by the Company arises
from derecognition of general capital revaluation adjustment.
Revaluation surplus is the actuarial deficit or surplus arising from the actuarial calculation of provisions for
severance pays upon retirement.
Provisions
Provisions are established for current commitments arising from obligating past events which are expected to
be settled in an unspecific period and whose amount can be estimated reliably.
In compliance with the law and the collective agreement, the Company is obliged to pay jubilee benefits and
retirement bonus to its employees for which it forms long-term provisions. Other pension liabilities do not exist.
Provisions are made in the amount equalling the expected amount of future jubilee rewards and severance pays.
The calculation is made for each employee individually, considering the costs of retirement bonus and the cost
of all expected jubilee benefits until retirement. The calculation based on a projected unit is prepared by a
certified actuary. The payments of retirement bonuses and jubilee benefits decrease the amount of formed
provisions. The FIFO method is applied to decrease in provisions due to disbursement or reversal.
Provisions for reorganisation have been made in connection with the Company’s reorganisation project for
severance pay to redundant employees.
Liabilities
Liabilities (debts) can be financial or operating, short- or long-term. At first debt is upon initial recognition stated
in the amounts arising from the underlying documents on the occurrence of such debt. In the case of long-term
and short-term financial liabilities (debts) they evidence the receipt of cash or the settlement of an operating
debt. In the case of long-term operating liability (debt) the relevant documents evidence the receipt of (usually)
an item of fixed assets. In the case of short-term debt the documents evidence a received product or service or
performed work or charged expense, costs or share in profit/loss.
Initially short- and long-term liabilities of all categories are posted at amounts recorded in the underlying
documents, assuming that the creditors demand their payment. At a later stage, liabilities may be increased by
the amount of accrued benefits (interests or other compensations), if an agreement has been made to that effect
with the creditor. Liabilities are decreased by amounts paid and potential other settlements subject to agreement
with the creditor. Long-term liabilities are also reduced by the part due in less than one year, which is recorded
under short-term liabilities.
Short-term accruals and deferrals
Short-term accruals and deferrals are receivables and other assets and liabilities expected to arise within one
year; their incurrence is probable, whereas their amount is reliably estimated. Short-term prepaid expenses
consist of short-term deferred costs (expenses) and accrued revenues, whilst accruals include accrued costs
(expenses) and short-term deferred revenues.
Short-term accruals and deferrals are disclosed in amounts that are recorded in the relevant documents proving
their origin and existence.
Recognition of revenues
Revenues are recognised if the increase in economic benefit during the accounting period is related to the
increase of assets or reduction of liabilities and if such increase can be reliably measured. Revenues are
recognised when it is justifiably estimated that they will result in actual inflows if these are not achieved upon
origin.
Operating revenues
Revenues from services rendered, except for those arising from performed services resulting in financial
revenues, are measured at sales prices of completed services or at sales prices of uncompleted services,
according to the level of their completion.
Revaluation operating revenues arise in association with disposal of property, plant and equipment as well as
intangible fixed assets, as the difference between the lower of the carrying amount or their sales value.
35
2014 Annual Report
Bankart d.o.o.
Financial revenues
Financial revenues are revenues from investments. They arise in relation to long- and short-term financial
investments and receivables.
Financial revenues are recognised upon accounting, regardless of the resulting inflows, unless there exists a
reasonable doubt as to their size, maturity and repayment.
Interest is charged on a time proportion basis based on the unpaid principal portion of the loan and the applicable
interest rate.
Other revenues
Other revenues include unusual items and other income increasing the operating result and disclosed in actual
amounts.
Recognition of expenses
Expenses are recognised if decreases in economic benefits during the accounting period are associated with a
decrease in assets or an increase in liabilities and the respective change can be measured reliably. They are
classified as operating, financial and other expenses.
Operating expenses
Operating expenses are in principle equal to the calculated cost of the accounting period and encompass costs
of material and services, labour costs and other operating expenses. Revaluation operating expenses are
recognised as soon as the relevant revaluation has been carried out, irrespective of their impact on profit or loss.
Revaluation operating expenses are related to property, plant and equipment, intangible fixed assets and current
assets due to their impairment.
Financial expenses
Financial expenses include financing expenses and investment expenses and are recognised as accounted for,
regardless of the payments related with them.
Other expenses
Other expenses include unusual items and other expenses decreasing operating result and disclosed in actual
amounts.
Corporate income tax and deferred taxes
Corporate income tax is established upon the tax account at the legal tax rate, taking into account expenses and
revenues recognised for tax purposes and tax reliefs reducing the tax base. The applicable tax rate for 2014 is 17
%.
Deferred tax is used for covering the temporary difference between the carrying amount of assets and liabilities
and the tax value under the balance sheet liability method. The Company recognises the deferred tax as taxable
costs of established provisions for retirement bonuses and jubilee benefits, and from the difference between the
accounting and tax depreciation or amortisation.
36
2014 Annual Report
Bankart d.o.o.
Notes to financial statements
1.
Balance sheet
1.1.
Intangible assets and long-term deferred costs and accrued revenues
Long-term
deferred costs
and accrued
revenues
Long-term
property
rights
Other
intangible
assets
Balance 31/12/2013
312,873
12,425,813
6,420,173
33,266
19,192,125
Procurement
204,018
768,445
297,973
1,052,329
2,322,764
in EUR
Intangible
assets being
acquired
Total
Historical cost
Activation
0
0
0
-1,066,417
-1,066,417
-208,095
-169,147
-237,718
0
-614,960
308,796
13,025,111
6,480,427
19,178
19,833,512
Balance 31/12/2013
0
8,697,274
5,236,166
0
13,933,440
Disposals and write-offs
0
-167,050
-236,529
0
-403,579
Depreciation and amortisation
0
1,276,706
513,608
0
1,790,314
Balance 31/12/2014
0
9,806,931
5,513,245
0
15,320,175
Balance 31/12/2013
312,873
3,728,538
1,184,007
33,266
5,258,685
Balance 31/12/2014
308,796
3,218,180
967,182
19,178
4,513,336
Disposals and write-offs
Balance 31/12/2014
Value adjustment
Carrying amount

Long-term property rights
This item comprises software licenses related to:
 licenses for POS, ATM and BASE 24 in total amount of EUR 993,266 purchased from the supplier ACI,
 EUR 957,385 for the Simp Sepa licences and software purchased from the supplier Halcom and
 other licences and software in the total amount of EUR 2,253,890.

Other intangible assets are software value.
37
2014 Annual Report
Bankart d.o.o.
Intangible assets and long-term deferred costs and accrued revenues for 2013
Long-term
deferred costs
and accrued
revenues
Long-term
property
rights
Other
intangible
assets
Balance 31/12/2012
232,455
11,929,332
6,242,808
0
18,404,595
Procurement
181,554
0
0
904,548
1,086,102
in EUR
Intangible
assets being
acquired
Total
Historical cost
Activation
0
693,917
177,365
-871,282
0
-101,136
-197,437
0
0
-298,573
312,873
12,425,813
6,420,173
33,266
19,192,125
Balance 31/12/2012
0
7,562,983
4,611,728
0
12,174,712
Disposals and write-offs
0
-86,752
0
0
-86,752
Depreciation and amortisation
0
1,221,044
624,438
0
1,845,481
Balance 31/12/2013
0
8,697,274
5,236,166
0
13,933,440
Balance 31/12/2012
232,455
4,366,349
1,631,080
0
6,229,884
Balance 31/12/2013
312,873
3,728,538
1,184,007
33,266
5,258,685
Business
premises
Land
Equipment
Disposals and write-offs
Balance 31/12/2013
Value adjustment
Carrying amount
1.2.
Property, plant and equipment
in EUR
Basic
assets being
acquired
Total
Historical cost
Balance 31/12/2013
3,196,937
187,800
15,432,837
0
18,817,574
Procurement
0
0
1,496,079
1,975,528
3,471,607
Activation
0
0
0
-1,496,079
-1,496,079
Disposals and write-offs
0
0
-618,267
0
-618,267
3,196,937
187,800
16,310,648
479,449
20,174,834
1,862,644
0
12,320,515
0
14,183,160
0
0
-546,105
0
-546,105
Balance 31/12/2014
Value adjustment
Balance 31/12/2013
Disposals and write-offs
Depreciation and amortisation
151,800
0
1,437,846
0
1,589,646
2,014,444
0
13,212,256
0
15,226,701
Balance 31/12/2013
1,334,293
187,800
3,112,322
0
4,634,415
Balance 31/12/2014
1,182,493
187,800
3,098,392
479,449
4,948,134
Balance 31/12/2014
Carrying amount
38
2014 Annual Report
Bankart d.o.o.

The real estate comprises the business premises at Celovška 150, purchased in 1999 and in 2009. The
business premises at the VI. floor of the building at Celovška 150 have a pledge registered in the Land
Register as a collateral for a long-term loan from the NLB.

Operating lease
The following cars and software are under operating lease:
 The fees for the Microsoft software leased from the ADD supplier fall due within one year in the amount
of EUR 164,737. The contract with the supplier is renewed upon the termination of the lease.
 The fees for leased cars in the amount of EUR 22,008 fall due within one year, while EUR 36,680 of rental
fees fall due within 2-5 years.
Lease fees falling due
in 1 year
in 2–5 years
Total
in EUR
186,745
36,680
223,425
Property, plant and equipment for 2013
in EUR
Business
premises
Land
Equipment
Basic
assets being
acquired
Total
Historical cost
Balance 31/12/2012
3,196,937
187,800
14,696,139
4,740
18,085,616
Procurement
0
0
0
1,045,364
1,045,364
Activation
0
0
1,050,104
-1,050,104
Disposals and write-offs
0
0
-313,406
3,196,937
187,800
15,432,837
0
18,817,574
1,710,844
0
11,294,461
0
13,005,305
0
0
-311,903
0
-311,903
Balance 31/12/2013
0
-313,406
Value adjustment
Balance 31/12/2012
Disposals and write-offs
Depreciation and amortisation
151,800
0
1,337,957
0
1,489,758
1,862,644
0
12,320,515
0
14,183,160
Balance 31/12/2012
1,486,093
187,800
3,401,678
4,740
5,080,311
Balance 31/12/2013
1,334,293
187,800
3,112,322
0
4,634,415
Balance 31/12/2013
Carrying amount
1.3.
Long-term investments
in EUR
Long-term deposits given
Total
31/12/2014
31/12/2013
100,000
100,000
0
0
In July 2014, Bankart took over the management of the POS network from Nova KBM, for which it had to place
a long-term deposit of EUR 100,000 with the bank as collateral for its operating liabilities.
39
2014 Annual Report
1.4.
Bankart d.o.o.
Deferred tax assets
in EUR
Provisions for jubilee benefits and retirement bonuses
Provisions for reorganisation
Depreciation/amortisation not recognised for tax purposes
Total
31/12/2014
31/12/2013
79,024
3,640
339,224
421,888
71,450
3,640
264,209
339,299
Trends in deferred taxes
in EUR
Balance 01/01/2014
Increase
Decrease
Balance 31/12/2014
1.5.
339,299
82,589
0
421,888
Short-term financial investments
in EUR
Short-term deposits
Total
31/12/2014
31/12/2013
5,200,000
5,200,000
3,500,000
3,500,000
The Company discloses time deposits with the bank which is also one of its owners under the item short-term
financial investments. The Company's investment policy is to invest at a low risk rate which is why it places its
short-term surplus in short-term deposits.
1.6.

Short-term operating receivables
Short-term trade receivables
in EUR
Receivables due from domestic buyers
Receivables due from foreign buyers
Total

31/12/2014
31/12/2013
2,164,042
112,989
2,277,031
1,853,214
105,805
1,959,019
31/12/2014
31/12/2013
2,623
99,185
8,261
110,069
2,858
27,866
69
30,793
Short-term operating receivables due from others
in EUR
Receivables from employees and from re-invoicing
Receivables from the state and from refund
Advance payments made
Total
Receivables are not secured by financial instruments. They are disclosed in euros and do not entail currency risk.
Buyers settle their debt to the Company on due date. At the end of the year the Company's overdue receivables
accounted for 1.3 %.
At the end of the year, the company established value adjustment for a claim on a buyer in the bankruptcy
proceedings in the amount of EUR 158.76.

Breakdown of trade receivables after due date
in EUR
Outstanding receivables
Overdue up to 60 days
Overdue more than 60 days
Total
31/12/2014
31/12/2013
2,247,003
21,058
8,970
2,277,031
1,957,321
3,231
-1,533
1,959,019
40
2014 Annual Report
1.7.
Bankart d.o.o.
Cash and cash equivalents
in EUR
Cash on hand
Deposit money in bank accounts
Call deposit
Total
31/12/2014
31/12/2013
10,857
1,429,363
600,000
2,040,220
1,359
1,366,850
600,000
1,968,209
The Company does not have any overdraft on transaction account.
1.8.
Short-term deferred costs and accrued revenue
in EUR
Short-term deferred costs arising from software maintenance
Other short-term deferred costs
Short-term accrued revenues
Total
31/12/2014
31/12/2013
1,285,829
20,959
763
1,307,551
963,003
11,835
13,397
988,235
Trends in deferred costs and accrued revenues
in EUR
Balance 01/01/2013
Disbursement
Establishment
Balance 31/12/2013
Balance 01/01/2014
Disbursement
Establishment
Balance 31/12/2014
1,085,689
-3,056,834
2,959,380
988,235
988,235
-3,311,604
3,630,920
1,307,551
Prepaid deferred costs for 2014 are short-term deferred costs for maintenance and lease of software.
1.9.

Capital
Equity and member stakes
Nova Ljubljanska banka d.d., Ljubljana
SKB banka d.d., Ljubljana
Nova kreditna banka Maribor d.d., Maribor
Banka Koper d.d., Koper
Abanka Vipa d.d., Ljubljana
Gorenjska banka d.d., Kranj
Banka Celje d.d., Celje
UniCredit Banka Slovenija d.d., Ljubljana
Raiffeisen banka d.d., Maribor
Deželna banka Slovenije d.d., Ljubljana
Poštna banka Slovenije d.d., Maribor
Probanka d.d., Maribor
Sberbank banka d.d., Ljubljana
Total
Stake in EUR
Share in %
788,779
272,382
259,769
144,950
156,484
111,143
113,127
44,804
34,585
27,989
20,435
17,761
7,874
2,000,082
39.44
13.62
12.99
7.25
7.82
5.56
5.66
2.24
1.73
1.40
1.02
0.89
0.39
100.00
41
2014 Annual Report

Net profit restated after translation of capital according to the consumer price index
Capital – all categories
except current profit (for
CPI)

Bankart d.o.o.
Amount of
capital
% of
growth
Calculated effect
Reduced profit –
net profit
16,216,714
0.2
32,433
1,955,999
Reserves
in EUR
Capital surplus – equity revaluation adjustment
Revenue reserves – legal reserves
Revenue reserves – other revenue reserves
Total
31/12/2014
31/12/2013
676,510
250,768
11,588,599
12,515,877
676,510
250,768
11,037,944
11,965,222
Reserves can be used pursuant to Article 64 of the Companies Act. On 02/07/2014 the General Meeting adopted
the resolution on posting of accumulated profit of 2013 to other revenue reserves.
1.10. Provisions and long-term accrued costs and deferred revenue
in EUR
Provisions for retirement benefits and long-service awards
Provisions for reorganisation
Fixed assets obtained free of charge
Long-term accrued costs and deferred revenues
Total
31/12/2014
31/12/2013
957,761
43,640
131,328
18,201
1,150,930
595,472
43,640
0
0
639,112
Trends in provisions and long-term accrued costs and deferred revenues in 2014
Provisions for retirement benefits and
long-service awards
Provisions for reorganisation
Fixed assets obtained free of charge
Long-term accrued costs and deferred
revenues
Total
Balance
01/01/2014
Disbursement
Establishment
Balance
31/12/2014
595,472
6,205
368,494
957,761
43,640
0
0
29,482
0
160,810
43,640
131,328
0
0
18,201
18,201
639,112
35,687
547,505
1,150,930
Trends in provisions and long-term accrued costs and deferred revenues in 2013
Provisions for retirement benefits and
long-service awards
Provisions for reorganisation
Long-term accrued costs and deferred
revenues
Total
Balance
01/01/2013
Disbursement
Release
Establishment
Balance
31/12/2013
557,533
6,668
0
44,607
595,472
69,260
0
0
43,640
9,726
9,726
25,620
0
0
0
636,519
16,394
25,620
44,607
639,112
 Provisions for retirement benefits and long-service awards
In the calculation of provisions as at 31 December 2014 the Company took into account 195 employees. The
selected annual discount rate was 1.9 %, which equalled the return recorded at the end of November 2014 on
10-year corporate bonds with a high credit rating in the euro area, increased by the local risk add-on. In the
calculation of provisions the model considers the assumed 1.3 % growth in average salary for 2015, 1.8 % growth
in salary for 2016 and 3% in the following years in the Republic of Slovenia.
42
2014 Annual Report
Bankart d.o.o.
 Provisions for reorganisation
These provisions were established based on the management’s resolution on the launching of the Company
reorganisation project, resulting from internal and external factors. In relation to internal and external factors
(market situation, economic crisis) the management passed a resolution that prescribes a comprehensive
examination and analysis of the overall organisation of the Company and its modification so as to improve costeffectiveness and achieve a better (optimal) use of all available resources, techniques and technologies.
1.11. Non-current liabilities

Long-term financial liabilities
in EUR
Nova Ljubljanska banka d.d., Ljubljana
Total
Trends in long-term financial liabilities
Balance 01/01/2013
31/12/2014
31/12/2013
320,000
320,000
400,000
400,000
31/12/2014
31/12/2013
80,000
80,000
80,000
80,000
in EUR
480,000
Transfer to short-term financial liabilities
-80,000
Balance 31/12/2013
400,000
Balance 01/01/2014
400,000
Transfer to short-term financial liabilities
-80,000
Balance 31/12/2014
320,000
1.12. Current liabilities

Short-term financial liabilities
in EUR
Short-term part of long-term loans with banks
Total
Trends in short-term financial liabilities
Balance 01/01/2013
Transfer from long-term financial liabilities
Repayment of loans
in EUR
109,630
80,000
Balance 31/12/2013
-109,630
80,000
Balance 01/01/2014
80,000
Transfer from long-term financial liabilities
80,000
Repayment of loans
Balance 31/12/2014
Financial liabilities falling due
in 1 year
in 2–5 years
Total
-80,000
80,000
in EUR
80,000
320,000
320,000
43
2014 Annual Report
Bankart d.o.o.
Long-term and short-term financial liabilities are disclosed on the basis of a loan agreement concluded with Nova
Ljubljanska banka.
The agreement no. 2643-2009 was concluded in 2009 with LHB Frankfurt, totalling EUR 800,000. The first
instalment fell due in January 2010 and the last in December 2019. In September 2013 the receivable of LHB
Frankfurt was taken over by Nova Ljubljanska banka. The loan is disclosed under long-term financial liabilities in
the amount of EUR 320,000 and under short-term financial liabilities in the amount of EUR 80,000. It is backed
by a mortgage on business premises. The interest rate is EURIBOR + 4%.
Given the volume of capital and low indebtedness level, the exposure of the Company to interest rate risk is
minimal. The interest rate risk exists owing to the scope of loans, however, the Company is granted loans under
favourable lending conditions due to good credit rating. The loan obtained is in domestic currency linked to
EURIBOR.

Short-term operating liabilities
in EUR
Short-term trade payables to domestic suppliers
Short-term trade payables to suppliers abroad
Short-term liabilities arising from advance payments
Short-term liabilities to employees
Short-term liabilities to the state
Other short-term operating liabilities
Total
31/12/2014
31/12/2013
1,361,239
235,541
17,750
619,729
523,978
0
2,758,237
1,020,177
166,128
0
637,654
208,243
4,427
2,036,629
1.13. Short-term accruals
Trends in short-term accruals in 2014
Balance
01/01/2014
243,559
612,978
in EUR
Unused annual leave
Accrued costs for indemnity
Accrued
remuneration
management
Total
for
the
Increase
0
0
150,416
173,109
1,006,953
173,109
Disbursement
24,397
260,000
150,416
0
352,901
Balance
31/12/2014
219,162
77
0
173,109
434,813
352,901
392,348
Release
Trends in short-term accruals in 2013
Balance
01/01/2013
235,730
267,159
in EUR
Unused annual leave
Accrued costs for indemnity
Accrued
remuneration
management
Total
for
the
Increase
7,829
612,978
149,711
150,416
652,601
771,223
Disbursement
0
267,159
149,700
0
0
Balance
31/12/2013
243,559
612,978
0
150,416
416,870
0
1,006,953
Release
1.14. Off-balance assets/liabilities
in EUR
Lien of Nova Ljubljanska banka
Received bank guarantee
Total
31/12/2014
31/12/2013
800,000
100,000
900,000
800,000
0
800,000
44
2014 Annual Report
Bankart d.o.o.
2.
Statement of total comprehensive income
2.1.
Net sales revenues
Net sales revenues are disclosed at charged sale value reduced by discounts and quantity rebates. The NLB Group
accounts for 50 % of revenues.
in EUR
Revenues from the sales on the domestic market
Revenues from the sales on the foreign market
Total
2.2.
Revenue from cancelled accrued costs and deferred revenues
Revaluation and other operating revenues
Total
Costs of material
Costs of services
Total
19,977,324
1,195,954
21,173,278
2014
2013
352,901
67,668
420,569
95,339
54,066
149,405
2014
2013
331,458
9,669,962
10,001,420
414,730
8,494,158
8,908,888
Costs of material
in EUR
Costs of production
Energy costs
Costs of office supplies and professional literature
Other costs of material
Total

21,499,860
1,387,139
22,886,999
Costs of goods, material and services
in EUR

2013
Other operating revenues
in EUR
2.3.
2014
2014
2013
2,866
187,344
57,706
83,542
331,458
7,027
243,621
67,424
96,658
414,730
2014
2013
959,129
5,980,796
1,096,349
445,214
738,480
449,994
9,669,962
937,702
5,576,425
637,883
407,343
407,213
527,592
8,494,158
Costs of services
in EUR
Costs of production
Cost of maintenance services
Costs of rents
Cost of transport services
Costs of intellectual services
Costs of other services
Total
45
2014 Annual Report
2.4.
Bankart d.o.o.
Labour costs
in EUR
Salaries and allowances for employees
Social security contributions
Pension insurance contributions
Payments for supplementary pension insurance
Other labour costs
Total
2014
2013
5,501,093
363,784
486,721
208,477
797,660
7,357,735
5,496,645
366,249
484,789
181,189
722,317
7,251,189
On 21 November 2001 the Company concluded with the Trade Union of Nova Ljubljanska banka an agreement
on the formulation of a voluntary supplementary pension insurance plan and, in accordance with the pension
scheme stipulated therein, pays insurance premiums for its employees.
2.5.
Write-downs in value
in EUR
Amortisation of intangible assets
Depreciation of items of property, plant and equipment
Revaluation operating expenses for intangible fixed assets, property,
plant and equipment and current assets
Total
2.6.
Land use fee
Indemnity
Tax on financial services
Other
Total
1,790,314
1,589,646
11,823
1,845,481
1,489,758
23,222
3,391,783
3,358,461
2014
2013
26,580
3,517
350,736
12,422
393,255
26,253
1,073,023
257,562
3,972
1,360,810
Financial revenues from financial and operating receivables
in EUR
Interest income from deposits
Revenues from foreign exchange gains
Total
2.8.
2013
Other operating expenses
in EUR
2.7.
2014
2014
2013
39,601
4,937
44,538
45,400
7,266
52,666
Financial expenses from financial and operating liabilities
in EUR
Interest expenses
Expenses for foreign exchange losses
Total
2014
2013
18,873
31,387
50,260
22,527
16,693
39,219
46
2014 Annual Report
2.9.
Bankart d.o.o.
Corporate income tax
Corporate income tax was calculated on the basis of the 17% tax rate, taking into account non-eligible expenses
and tax reliefs for reduction of tax base. The company disclosed the corporate tax liability in the amount of EUR
251,052.
The effective tax rate without deferred taxes was 12%, in 2013 the effective tax rate was 0%.
in EUR
Accounting revenues
Adjustment of revenues to the level recognised for tax purposes
Revenues recognised for tax purposes
Accounting expenses
Adjusted expenses from accrued depreciation
Expenses for bonuses not taxed under personal income, which are not
recognised for tax purposes
Other expenses not recognised for tax purposes
Expenses recognised for tax purposes
Reliefs
Corporate income tax
2014
2013
23,352,107
49,382
23,401,489
21,195,212
438,696
215,255
21,375,849
848
21,376,697
20,924,580
424,431
181,401
104,812
20,436,448
1,488,264
251,052
147,470
20,171,278
1,205,419
0
2.10. Deferred tax
Deferred tax equalling EUR 82,589 is associated with increased deferred tax assets related to provisions for
retirement bonuses, jubilee benefits, provisions for reorganisation, and depreciation or amortisation not
recognised for tax purposes.
2.11. Total comprehensive income for the period
in EUR
Profit or loss before tax
Corporate income tax
Deferred tax assets
Net profit
Revaluation surplus
Total comprehensive income for the period
2014
2013
2,156,896
-251,052
82,589
1,988,433
-287,678
1,700,755
451,269
0
99,387
550,656
0
550,656
47
2014 Annual Report
Bankart d.o.o.
Other disclosures

Total payments received by groups of persons for performing tasks and duties in the business year according
to the Companies Act.
Salaries, attendance fees and
bonuses
(gross amounts) in EUR - 2014
Salaries, attendance fees and
bonuses
(gross amounts) in EUR - 2013
Management of the company (2)
226,226
121,106
Directors of divisions in total (3)
375,075
327,436
26,731
55,615
Supervisory Board
The Company does not disclose any major operating receivables due from the members of the Management
and Supervisory Boards or any short-term debts, advances, loans and guarantees for their liabilities. Based on
the shareholders' proposal, the company's management was expanded from one to two directors on
01/04/2014. The reason for the expansion is in the increased scope of operations of the company (new
business areas, assuming the role of a clearing company).

Costs of auditing services
in EUR
2014
2013
59,436
15,442
Costs of auditing the annual report, final audit
6,340
5,907
Costs of auditing the annual report, pre-audit
9,719
9,057
Costs of auditors' services

Cost breakdown by functional group
in EUR
Value of sold products and services
Costs of sale
Costs of general activities

2014
2013
961,996
944,729
17,639,214
17,518,302
2,599,002
2,416,317
Transactions with related parties (NLB Group)
in EUR
Balance sheet items
31/12/2014
31/12/2013
1,000,050
1,047,818
Short-term operating liabilities
24,480
25,198
Short-term financial liabilities
80,000
80,000
Long-term financial liabilities
320,000
400,000
Short-term deposits
600,000
600,000
0
3,500,000
2014
2013
11,460,666
10,962,636
310,720
840,800
Short-term operating receivables
Short-term financial investments
Items from the statement of comprehensive income
Sales revenues
Expenses
Bankart has the status of an associated company of the NLB Group. All major transactions conducted by the
Company with related parties were performed under market conditions and were without detriment to the
Company.
48