2013 - Halkbank ad Beograd

A N N U A L
R E P O R T
2 0 1 3
Champions are made from something
they have deep inside of them
-a desire, a dream, a vision.
Mahatma Gandhi
Inspired by the recent results of our national team athletes, their professional
attitude and committment, Čačanska banka would like to use this Annual Report
to attract attention of the public to their extraordinary human qualities and sports
achievements.
CONTENTS
Basic Operating Ratios
04
Mission Statement and Vision
06
Managing Bodies
07
Introductory Address by Executive Board
08
MACROECONOMIC ENVIRONMENT
AND BANKING SECTOR
10
Macroeconomic Environment
12
Banking Sector
15
OPERATING REPORT
16
Business Operations
18
Retail Operations
20
Equity
22
Risk Management
24
ORGANISATION
28
Organisational Structure
30
Branch Network
31
Human Resources
32
Management
33
REAL VALUES
34
Socially Responsible Operations
36
Success Stories
40
FINANCIAL STATEMENTS
42
Independent Auditor’s Report
44
Statement of Income
46
Balance Sheet
47
Cash Flow Statement
48
Statement of Changes in Equity
49
IVANA ŠPANOVIĆ
LONG JUMP
04
BASIC OPERATING RATIOS
2013
2012
2011
1,109,906
1,097,586
1,195,670
Fee and commission income
552,903
559,168
488,602
Profit after taxation
-86,919
49,892
122,728
Loans and advances to customers
21,080,500
21,254,080
18,881,806
Customers' deposits
15,787,434
13,851,034
11,588,106
Income Statement (in RSD 000)
Interest income
Balance Sheet (in RSD 000)
4,990,725
5,077,644
5,024,340
Balance sheet assets
33,816,142
32,832,007
30,390,661
Off-balance sheet items
12,971,534
12,756,783
10,912,439
ROE before taxation
-%
1.13%
2.87%
ROE after taxation
-%
0.99%
2.71%
ROA before taxation
-%
0.18%
0.44%
ROA after taxation
-%
0.16%
0.42%
Operating expenses / Net interest,
fee and commission income
63.10%
60.69%
58.96%
Capital adequacy
16.47%
17.25%
21.05%
417
450
454
Equity
Financial Ratios
Shareholders
Number of shareholders
182,116
182,116
182,116
Nominal value per share
10,000
10,000
10,000
Book value per share
27,404
27,881
27,589
24
25
28
391
389
380
1,19%
1.14%
1.15%
Number of shares
Number of branches and sub-branches
Number of employees
Share in banking sector assets
05
TOTAL BALANCE SHEET ASSETS
in RSD 000
35,000,000
LOANS AND ADVANCES
TO CUSTOMERS
EQUITY
in RSD 000
6,000,000
30,000,000
in RSD 000
25,000,000
5,000,000
20,000,000
25,000,000
4,000,000
15,000,000
20,000,000
3,000,000
15,000,000
21,080,500
PROFIT
in RSD 000
15,000,000
2013
21,254,080
2012
18,881,806
4,990,725
2013
OFF-BALANCE SHEET ITEMS
in RSD 000
18,000,000
5,000,000
2011
5,077,644
2012
33,816,142
2013
CUSTOMERS' DEPOSITS
1,000,000
5,024,340
32,832,007
2012
5,000,000
2,000,000
2011
30,390,661
2011
10,000,000
10,000,000
in RSD 000
140,000
120,000
60,000
9,000,000
49,892
12,000,000
2012
80,000
122,728
100,000
12,000,000
2011
40,000
20,000
9,000,000
2013
15,000,000
12,756,783
12,971,534
2012
2013
-80,000
-40,000
-60,000
-100,000
-86,919
10,912,439
15,787,434
2013
3,000,000
-20,000
2011
13,851,034
2012
3,000,000
11,588,106
6,000,000
2011
6,000,000
06
MISSION
STATEMENT
The main objective of Čačanska banka is to position itself as a bank with a significant market share and attractive position in the regions of Central and Western Serbia. The Bank primarily focuses on the segment of small and medium
sized enterprises that has a key role in the economic development in Serbia. It accomplishes its business targets in a
responsible way, with due regard to the development and protection of social and environmental community.
VISION
In the forthcoming period, Čačanska banka will respond to all challenges arising from the economic crisis, increase
its market share and upgrade individual approach to servicing micro clients, SMEs and retail customers. Thus it will
make conditions for its expansion in the post-crisis period.
07
MANAGING BODIES
EXECUTIVE BOARD
Dragan Jovanović
president
Aleksandar Ćalović
vice president
Milanka Mandić
member
BOARD OF DIRECTORS
Bojan Dimitrijević
Vera Leko
Jasmina Bogićević
president
vice president
independent member
(Republic of Serbia representative)
(independent member)
Đorđe Pjević
Andrzej Witak
Anthony Paul Tekla Bendien
member
member
member
(Republic of Serbia representative)
(EBRD representative)
(IFC representative)
Vera Leko
Vesna Macura
Jasmina Bogićević
president
member
member
AUDIT COMMITTEE
08
INTRODUCTORY ADDRESS
BY EXECUTIVE BOARD
Dear Shareholders, Customers and Business Partners,
Hard operating conditions from the end of 2008 until today, generated by the economic and
financial crisis, had a growing adverse effect on the activities of the banking and economic
sectors. Weak economic activities, illiquidity of companies and increase in unemployment
during 2013 reflected on the negative financial result of the banking sector amounting to
2,118 million dinars, accounting for a 1.16% fall of total assets and a 7.61% decrease in loans.
The reported loss of the banking sector is a result of recession trends in the economy, operations in the conditions of high credit risk and a growth of high risk loans to 334,117 million
dinars, which made 22.32% share of high risk loans in total loans at the end of 2013. In such
business environment, Čačanska banka made a loss amounting to 86,919 thousand dinars in
2013. The loss resulted from a significant increase in net losses on impairment and provisions
that reached 707,970 thousand dinars. Their 19.54% increase relative to the end of the previous year, mostly came due to deterioration of liquidity and financial condition of the Bank’s
customers in the segment of large companies in domestic ownership.
Total assets of the Bank grew by 3.00% and the Bank’s share in total assets of the banking sector
increased to 1.19%, which put the Bank at the 18th place by total assets in the banking sector.
The loan portfolio of the Bank reduced by 0.82% during 2013. The fall of credit activities in
2013 resulted from declining demand for loans at the bank market, but also from stricter
lending criteria set by the Bank. Nevertheless, the Bank increased its market share to 1.33%
so that at the year end it took the 17th place by total loans of all banks in Serbia.
Corporate and retail deposits achieved a growth of 14.60% in 2012 which resulted in the market share of 1.05% and ranking of the Bank at the 19th place at the end of 2013.
In the segments of total assets, total loans and deposits, the Bank increased its market share
at the end of 2013 and improved its position in the banking sector, regardless of the unfavourable business environment and numerous problems that its customers had.
During 2013 the Bank disbursed 12.6 million euros of foreign loans in total. Of that
amount, the most significant are the loan facility from the FMO – Netherlands Development Bank intended for financing working capital of small and medium enterprises with
disbursed 7 million euros, and the credit line from the KfW – the German Development
Bank intended for energy efficiency and renewable energy projects with 5 million euros
disbursed by the Bank.
For the purpose of backoffice centralisation the Bank started the process of Document Management System (DMS) implementation during 2013, of which three processes were successfully
released in the production and have been actively used: the process for opening accounts for legal entities, the process for foreign-currency operations and the process for deposit operations.
09
In domestic payment operations during 2013, the Bank processed 8,033,226 payment orders
amounting to nearly 820,322 million dinars. As compared to 2012, the number of customers’
orders grew by 9.60% and the volume by 3.71%. The volume of business and retail foreign
payment operations rose by 16.90% compared to 2012 and amounted to 443,098 thousand euros. Regarding the number of transactions, 54,387 transactions were executed during 2013,
accounting for a rise of 14.54% compared to the previous year.
In the field of the development of alternative communication channels, Čačanska banka implemented an Android application, a mobile banking application, a new e-banking application,
while also initiating a corporate Facebook page.
The price of a Čačanska banka share equalled 10,000 dinars, accounting for a 100% increase
compared to the price at the year beginning. The year 2013 marked higher liquidity in trading
with the Bank’s shares relative to 2012. During 2013, 13,869 shares changed their owners,
which is 7.62% of the total number of the Bank’s trading shares.
During 2013 the quality management system recertification was carried out by the Swiss SGS,
after which the Bank was awarded for the sixth time, but the fourth time by SGS, a certificate for the implemented quality management system according to standard ISO 9001:2008
requirements. Additionally, the Bank was awarded by SGS for the first time a certificate for
information security management complied with standard ISO 27001:2005 requirements.
At the end of 2013 the Deposit Insurance Agency published a Request for Expressions of Interest
in the process of sale of shares of Čačanska banka. Thus the prequalification phase commenced
for the sale of 76.74% of the Bank’s shares. The Bank’s plan is to find a respectable strategic
partner and complete the process of ownership transfer from existing owners to the new one
during 2014. Our aim is not to jeopardise operations or customer satisfaction by the ownership
transformation. The Bank will do its best to continue to be a secure and reliable financial partner
to its customers and to achieve its plans and targets as a socially responsible company.
On behalf of the Executive Board, I would like to thank to our shareholders, clients and business
partners for their confidence and successful cooperation, and to all employees for their commitment and efforts they make for the purpose of development and overall operations of the Bank.
President of Executive Board
Dragan Jovanović
ASMIR KOLAŠINAC
SHOT PUT
MACROECONOMIC
ENVIRONMENT
AND BANKING SECTOR
12
MACROECONOMIC
ENVIRONMENT
According to the assessment of the Ministry of Finance,
Gross Domestic Product (GDP) reached the value of EUR
31,980.4 million at the end of 2013 and grew in real terms
by 2.5% compared to the previous year. The GDP rise was a
result of a growth in industrial and agricultural production,
increase in export and slowdown of inflation.
In 2013 the export of goods amounted to EUR 10,999 million which accounted for an increase of 25.8% as compared
to 2012. In the same period import of goods came at EUR
15,463.1 million growing by 5.1% and resulting in trade deficit of EUR 4,464.1 million.
Unlike depreciation pressures in the previous period, foreign exchange market trends appreciation pressures. During 2013 the Dinar depreciated against the Euro by 0.81%
and appreciated to the US Dollar by 3.54%. The local currency had the highest value in April when one Euro equalled
GDP REAL GROWTH RATE
RS GROSS DOMESTIC PRODUCT
In %
2
25,000
1
1.6
30,000
2013
2012
2012.
2011
2010
2009
1.0
3
28.952
35,000
2.5
In EUR million
31,980
29,601
31,472
27,968
28,952
10,000
-1.5
-1
15,000
-3.5
20,000
-2
-3
2013
2012
2011
2010
2009
5,000
*Source: Ministry of Finance of Republic of Serbia
Statistical Office of the Republic of Serbia
-4
*Source: Ministry of Finance of Republic of Serbia
Statistical Office of the Republic of Serbia
13
FOREIGN EXCHANGE RATE TREND
In RSD
120
115
113.72
111.60
111.52
114.17
111.96
110.54
113.80
114.42
85.83
86.40
114.60
114.01
114.04
114.64
111.61
110
105
100
95
90
87.43
86.18
82.16
85
87.41
84.84
85.61
87.41
83.73
84.89
83.20
83.13
80
Jan
2013
Feb
2013
Mar
2013
Apr
2013
May
2013
June
2013
July
2013
Aug
2013
Sep
2013
Oct
2013
Nov
2013
Dec
2013
RETAIL PRICES GROWTH
In %
14
12
RSD 110.54 and the lowest in December when one Euro
equalled RSD 114.64. Appreciation pressures resulted primarily from good trends in balance of payments, mostly
arising from the export growth, whilst the set of measures
relating to fiscal consolidation had a stabilising effect.
During 2013 the growth of consumer prices cumulatively
reached 2.2%. The highest monthly growth was 1% in June.
The previous year marked the lowest inflation since this category had been observed according to the methodology of
consumer prices index. The NBS restrictive monetary policy
aimed at reaching the targeted inflation level and prevention
of transmitting the growth of regulated prices to other prices, deflation pressures due to good agricultural pressure
and low aggregate demand, were the basic factors that had
affected the low inflation rate.
10
8
6
7.0
12.2
2.2
2012
2013
4
2011
Dec
2012
2
The NBS foreign exchange reserves reached EUR 11.19 billion as at the end of December 2013. This level of foreign
exchange reserves ensured macroeconomic stability and
was a clear signal of adequate liquidity for participants at
the international financial market.
14
REFERENCE RATE TREND
In %
11.75
12
11.50
11.25
11.25
11.00
11
10.50
10.00
10
9.50
9
8
01.01.
16.01.
17.01.
04.02.
05.02.
13.05.
14.05.
05.06.
After the NBS opted for a model of multiple interest rates in
the process of sterilising surplus of liquid funds, the impact of
reference rate significantly lessened while the impact of the
interest rate on deposit facilities strengthened. Consequent-
06.06.
17.10.
18.10.
06.11.
07.11.
16.12.
17.12.
31.12.
ly, was a correction of the representative interest rate BELIBOR trend from 12.25% at the year beginning and/or above
the reference rate, to 9.15%, setting the trend below the NBS
reference rate.
15
BANKING SECTOR
Unstable macroeconomic environment during 2013 had a direct negative impact on the financial position and operating
results of the banking sector. The financial strength of the
banking sector reduced and it made total loss of RSD 18 million at the end of 2013. Two banks were revoked their operating licenses by the National Bank of Serbia revoked, so that
there were 30 banks operating at the end of 2013.
Total assets of the banking sector amounted to RSD 2,846 billion as at 31.12.2013 and were by 1.16% lower than at the end
of 2012. The share of Čačanska banka in total balance sheet
assets of the Serbian banking sector was 1.19% at the end of
2013 and the Bank took the 18th place by total assets, which
was a leap from the 20th place at the end of 2012.
TOTAL ASSETS OF THE BANKING SECTOR
Total loans of the banking sector amounted to RSD 1,653 billion
at the end of 2013 and decreased by 7.61% compared to the
end of the previous year. Čačanska banka experienced a 3.50%
fall of total loans. Its market share was 1.33%, taking the 17th
place by total loans of all Serbian banks as at 31.12.2013.
Fifteen banks made profit during 2013. Total profit before taxation equalled RSD 32,546 million, while 15 banks reported
loss in the amount of RSD 34,664 million. The negative financial result of the banking sector resulted from a high business
risk caused by high credit risk. Low profitability of banks was
generated by small growth of net interest income (1.00%), due
to a fall in the volume of credit activities of banks and lowering
of interest rates on loans, as well as the increase in losses on
impairment and provisions by 29.00% at the end of 2013.
TOTAL LOANS OF THE BANKING SECTOR
in RSD billion
in RSD billion
2,000
3,000
2,500
1,500
2,000
1,680
1,645
1,789
1,653
31.12.2011
31.12.2012
31.12.2013
2,846
2,880
2,650
2,534
1,000
31.12.2010
1,000
1,500
31.12.2013
31.12.2012
31.12.2011
500
31.12.2010
500
OPERATING
REPORT
TATJANA JELAČA
JAVELIN THROW
18
GROSS BUSINESS LOANS
in RSD million
21,000
18,000
15,000
12,000
During 2013 gross business loans grew by 0.66% and as at
31.12.2013 they reached RSD 20.79 billion.
Long-term gross business loans amounted to RSD 15.03
billion as at 31.12.2013 and made a fall of 2.33% compared to the previous year, while short-term gross loans
amounted to RSD 5.76 billion making up an increase of
9.39% relative to 2012.
20,948
20,970
20,851
20,790
03/31/13
06/30/13
09/30/13
12/31/13
BUSINESS
OPERATIONS
3,000
20,762
6,000
12/31/12
9,000
From the credit facility of the Netherlands Development Bank (FMO) 141 loans were disbursed in the total
amount of EUR 7.5 million. Borrowers are SMEs and entrepreneurs.
During 2013 Čačanska banka continued implementing the
projects commenced in the previous period in cooperation
with reputable international financial institutions.
Čačanska banka has been recognisable for financing energy
efficiency and renewable energy projects. During 2013 the
Bank disbursed 15 loans in the amount of EUR 459 thousand. The loans were disbursed from the credit facility which
is implemented in cooperation with the German Development Bank (KfW) and the National Bank of Serbia, aimed at
financing energy efficiency measures.
From the BusinessUp credit line 930 loans were disbursed
equalling EUR 10.24 million. For this credit facility the European Investment Fund (EIF) provides a guarantee that partially covers the lending risk of the Bank, which facilitates micro
companies in accessing finances.
In February 2013 the Bank signed an agreement with the Development Fund of the Republic of Serbia on governing mutual relations regarding subsidised interest for liquidity loans
and loans for working capital during 2013. In accordance with
this agreement the Bank disbursed 385 liquidity loans and
19
LOAN PORTFOLIO INDUSTRY STRUCTURE
(GROSS EXPOSURE)
STRUCTURE OF BUSINESS
LOANS BY MATURITY
In RSD 000
2013
26.75%
24.14%
Extracting ore and processing industry
Agriculture,hunting, fishing, forestry
16.37%
32.74%
8,570,830
230,584
Trade
4,938,782
Hotels, restaurants, communication, warehousing
1,426,952
Real-estate activities
561,626
Construction
1,038,496
Retail
5,093,497
Electrical energy and gas production and distribution
1,259
0
Education, health-care and social work
Up to 1 year
2 to 5 years
1 to 2 years
Over 5 years
loans for working capital, of which RSD 166 million in dinars
and RSD 1.12 billion in euros.
Over the year there were several promotions of some products, providing better terms and conditions. In June 2013 the
Bank offered a package of products for legal entities and entrepreneurs, with special promotional conditions for the following products: Dinar Loan, Overdraft and Visa Business.
During the promotional period 183 dinar loans were disbursed equalling in total RSD 554.9 million and 173 overdrafts
in the total amount of RSD 65.96 million. Apart from these
three credit products, special conditions for additional three
products were offered to new clients: facilities when opening
and maintaining current accounts, free SMS service and free
maintenance of e-banking for a six months’ period.
In August the Bank had a special offer for revolving SME dinar loans. During this summer offer, loans were disbursed
Banks
926,825
Other
1,608,910
Total:
24,397,761
with lower interest rate with no front-end-fee and 0.2% fee
upon disbursement. Ninety loans were disbursed in the total
amount of RSD 312.6 million.
During the last two months of 2013 the Bank offered special
terms and conditions for SME dinar loans. The loans were disbursed with lower interest rate and 0.3% fee paid in a lump
sum. The Bank disbursed 60 loans in the total amount of RSD
451.17 million.
In the structure of business loans by maturity, most of them –
32.74% were with maturity over 5 years, whereas 40.51% were
loans up to 2 year maturity.
Segmentation of business loans by industry presented in the
table, implies risk diversification per activities determined by
the Bank’s Operating Policy.
20
RETAIL LOAN PORTFOLIO
(GROSS LOANS)
in RSD million
4,000
3,000
Retail operations in 2013 characterized an improvement in
the assortment of credit and deposit products and services
for this client segment.
The Bank supported customers in solving their residential
issues by disbursing more than 70 housing loans amounting
to EUR 2.36 million, of which EUR 1.47 million in 39 housing
loans within the Programme for Supporting Long-Term Housing Lending with Republic of Serbia Subsidy.
The activities of financing energy efficiency and renewable energy projects, as one of the main products of the Bank, were
implemented through GGF (in Q1) and KfW credit lines. The
Bank financed investments into more than 800 projects in
the total amount of EUR 2.53 million, confirming the Bank’s
leading position in the area of improving energy efficiency in
households. The major lending channels were promotions
3,170
3,306
3,525
3,515
31.03.13
30.06.13
30.09.13
31.12.13
RETAIL
OPERATIONS
3,129
1,000
31.12.12
2,000
and product packages, as well as cooperation agreements
with the Bank’s partners – producers and retailers.
During 2013 the Bank reached a record level of dinar cash loans
and refinancing loans. Over 2,700 loans were disbursed in the
amount of EUR 6 million. Special promotions for privileged clients
and direct acquisition of new customers contributed to this result.
Consequently the retail credit portfolio reached RSD 3.52 billion at the end of 2013, making up a 12.35% increase relative
to the end of 2012.
During 2012 the Bank actively collected available cash from
retail customers. In H2 a new deposit product was introduced
providing customers to deposit their additional available funds
at the account where they had initially deposited their savings,
at any time without coming to any branch. The activities in this
21
RETAIL FOREIGN SAVINGS
RETAIL LOAN PORTFOLIO BY PURPOSE
in EUR 000
in RSD 000
70,000
83,657
363,575 103,126
140,331
423,311
60,000
1,543,508
50,000
40,000
857,863
52,451
60,158
2012
2013
Other receivables
43,473
EE/RE
Overdraft
2011
Cash
Other consumer
loans
35,381
20,000
Housing
2010
30,000
10,000
Car purchase
area resulted in a growth of dinar term deposits by 177.64% up
to RSD 296.56 million. In this way the Bank supported the NBS
activities pertaining to the promotion of savings in the local
currency. Still, foreign exchange term deposits held the dominant share in retail deposits in the amount of RSD 5.43 billion.
During 2013 foreign retail savings grew by EUR 7.7 million or
by significant 14.69%.
Regarding operations with cards, the Bank issued three types
of retail payment cards during 2013. The domestic brand DINA
was available to retail clients through debit and credit cards,
while the international brand VISA was available through Visa
Classic debit card.
With regard to improvement of the quality of services that the
Bank provided to its retail customers, the previous year was
marked with activities relating to development of alternative
communication channels and electronic services.
As for communication channels the Android application
ČBank Info was fully implemented and a Facebook page
was set up. In H2 the Bank was focused on the development and upgrading of electronic services so as to enable maximum comfort to its clients in using these services. Consequently functionalities and visual appearance of
eBanking services were upgraded and a mobile application
ČB mBanking was developed.
SMS and e-mail promotional activities were implemented
throughout the year. The Bank ran a number of campaigns for
its products and services and sent advertising SMS to more
than 40,000 clients.
22
EQUITY
At the end of 2013 total equity of Čačanska banka amounted to
RSD 4.99 billion, which was a fall of 1.71% compared to 2012.
Capital adequacy ratio was 16.47% as at 31.12.2013 and higher than anticipated for 2012. Minimum capital adequacy rate is
12% according to the regulations of the National Bank of Serbia.
CAPITAL OF ČAČANSKA BANKA
In RSD 000
31.12.2013
31.12.2012
Growth in %
Share and other capital
3,048,483
3,048,483
0
Reserves
2,021,870
1,979,269
2.15
7,291
49,892
–85.39
86,919
-
4,990,725
5,077,644
Retained earnings
Loss up to equity
Total equity
–1.71
TOP SHAREHOLDERS AS AT 31.12.2013
Shareholder
No.of shares
Ownership %
1. REPUBLIC OF SERBIA
51,840
28.47
2. EBRD – LONDON
45,494
24.98
3. IFC - WASHINGTON
36,395
19.98
4. EAST CAPITAL- BALKAN FUND - LUXEMBOURG
6,879
3.78
5. BEOGRADSKA BANKA AD IN BANKRUPTCY - BELGRADE
5,951
3.27
6. QWEST INVESTMENTS LIMITED - LIMASSOL
4,892
2.69
7. METALAC AD - GORNJI MILANOVAC
3,044
1.67
8. ORGANIC FOODS DRINKS - BRISTOL
2,941
1.61
9. PROINVESTMENTS AD – BELGRADE
2,765
1.52
10. MANDAT DOO -BELGRADE
2,334
1.28
19,581
10.75
182,116
100.00
11. OTHERS
TOTAL:
23
ČAČANSKA BANKA SHARE PRICE AT THE BELGRADE STOCK EXCHANGE
in RSD
12,050
13,000
12,000
12,000
11,015
11,000
10,000
11,000
10,000
8,300
9,000
8,300
6,000
8,000
6,800
7,000
6,000
5,000
5,450
5,500
5,500
31.01.
28.02.
31.03.
5,000
4,000
3,000
2,000
1,000
31.08.
30.09.
31.10.
30.11.
31.12.
MARKET CAPITALIZATION OF
ČAČANSKA BANKA DURING 2013
in RSD million
2,500
2,000
1,500
1,237
2,193
1,820
30.09.
31.12.
1,000
30.06.
The price of Čačanska banka’s share as at 31.12.2013 was
RSD 10,000 accounting for the increase of 100% compared to
the price in the year beginning. In 2013 trading of the Bank’s
shares was marked with higher liquidity than in the previous
year. In this period 13,869 shares changed their holders, which
accounts for 7.62% of the total number of trading shares of
the Bank. The largest trade was on 30.09.2013, when 6,880
shares were traded with.
31.07.
1,001
30.06.
31.03.
31.05.
910
30.04.
01.01.
01.01.
500
24
RISK
MANAGEMENT
The Bank’s targets regarding risk management are identification, measuring, mitigating and monitoring all risk types and
thus minimizing the Bank’s exposure to risks.
Average liquidity ratio was 2.67 during 2013 so that liquidity
of the Bank measured by this ratio was in a low risk category.
Pursuant to the Law on Banks and the Decision on Risk Management, the following risks were monitored in Čačanska
banka:
CREDIT RISK
• Liquidity risk
• Credit risk, including residual risk, dilution risk, settlement/delivery risk, counterparty risk
and currency
induced credit risk
• Interest rate risk
• Foreign-exchange risk and other market risks
• Concentration risk
• Investment risk
• Risk relating to the country of origin of the entity to
which the Bank is exposed (country risk)
• Operational risk, including legal risk
• Risk of inappropriate management of the information
system
• Compliance risk, including risk of sanctions of a regulatory body, risk of financial losses and reputation risk
• Strategic risk
• Environmental and social (E&S) risk
LIQUIDITY RISK
The Bank measured and monitored credit risk through the assessment of clients’ solvency, the control of the loan portfolio
quality and calculation of loan loss reserves.
STRUCTURE OF GROSS RISK-WEIGHTED
ASSETS BY CLASSIFICATION CATEGORIES
In RSD million
Classification Classified
category
amount
%
%
A
18,267
52.94%
B
8,433
24.44%
C
2,265
6.56%
6.56%
D
303
0.88%
16.06%
E
5,237
15.18%
34,505
100.00%
Total
77.38%
100.00%
LIQUIDITY RATIO
Liquidity Ratio
2012
2013
31 December
2.18
2.66
Average
2.01
2.67
Maximum
2.54
3.55
Minimum
1.43
2.10
As at 31.12.2013 gross risk-weighted assets were in a high
credit risk category, because more than 13% and less than
18% of gross risk-weighted assets were classified in categories D and E. The share of the worst classified assets was
14.33% as at 31.12.2012 and 16.06% as at 31.12.2013.
Negative macroeconomic trends, particularly a slowdown in
economic activities and liquidity deterioration of companies had
an adverse effect on the quality of the Bank’s credit portfolio.
25
MARKET RISK (INTEREST RATE RISK, FOREIGN CURRENCY RISK AND RISK OF CHANGES IN SECURITIES PRICE)
RISK OF CHANGES IN PRICES
OF SECURITIES
During 2013 the Bank carried out a conservative policy of
investing into securities, so that a bulk was invested into
bonds of the Republic of Serbia – EUR 7.5 million was purchased in 2013.
INTEREST RATE RISK
The base for interest rate risk management is the Procedure for Interest Rate Risk Management. When assessing
interest rate risk, all interest sensitive items of assets and
liabilities were taken, risk of maturity gap between interest sensitive items of assets and liabilities for all currencies in which the Bank was exposed to interest rate risk
and the impact that any changes in market interest rate
had on the financial result and capital of the Bank.
On the basis of the test result it was concluded that anticipated changes in market interest rates might cause
maximum potential loss within the limit acceptable for the
Bank, and/or the Bank was not significantly exposed to
interest rate risk.
Average interest rates on placements were also observed,
individually per types of placements, as well as single cost
prices by particular funding sources.
As at 31.12.2013 the Bank owned old foreign savings bonds in
the nominal value of EUR 7.3 million thousand, or RSD 776.12
million market value. In the total portfolio of the Bank the
bonds accounted for 97.40%.
As at the end of 2013, the Bank had 16 different shares of
the total value of RSD 20.68 million making up 2.60% of the
total portfolio.
RISK OF INVESTING IN
NON-FINANCIAL PERSONS
AND FIXED ASSETS
The Bank’s investments in non-financial persons were in a
low risk category (below 6% of equity).
Total investments in non-financial persons and fixed assets
were also in a low risk category (below 45% of equity).
FOREIGN-EXCHANGE RISK
INVESTMENTS IN NON-FINANCIAL
PERSONS AND FIXED ASSETS
FOREIGN-EXCHANGE
RISK RATIO
Foreign-exchange
risk ratio
2012
2013
31 December
6.40%
1.73%
Average
5.33%
4.66%
Maximum
11.44%
13.05%
Minimum
1.57%
1.46%
During 2013 foreign exchange risk, measured by the foreign
exchange risk ratio was steadily in a low risk category, with an
average value of 4.66%.
Investments in
non-financial persons
Total investments
in non-financial persons
and fixed assets
2012
2013
0.37%
0.39%
19.05%
20.52%
26
EXPOSURE RISK
THE BANK'S NET EXPOSURE TO PERSONS RELATED TO THE BANK AND LARGE EXPOSURES
2012
(in RSD 000)
% of equity
(in RSD 000)
240,813
5.52%
222,265
5.77%
3,647,467
83.62%
3,315,772
86.09%
Persons related to the Bank
Large exposures
From the perspective of the total exposure to persons related to the Bank, the Bank was within the regulatory limits
as at 31.12.2013. Also, analysing single exposures of persons related to the Bank and/or groups of persons related
to the Bank, we may conclude that exposures of all persons
were below 5% of the Bank’s equity.
During 2013 there were 63 events of operational risk recorded
in the data base, which was 15 events less than in 2012.
According to the criteria of the number of events of the same
type, one type of event – Recording and Effecting Transactions, was in a medium risk category. There were 41 events of
this type, but with no negative financial effect.
All other risks were in a low risk category, both from the perspective of the financial impact and the impact on health and
safety of employees and clients of the Bank.
EXPOSURE TO OPERATIONAL RISK
Gross loss (EUR)
Net loss (EUR)
Net loss (in RSD 000)
%
COUNTRY RISK
The Bank had deposits in banks in the countries classified as
low risk and medium risk countries by the OECD methodology
and the Bank’s procedure.
E&S RISK
OPERATIONAL RISK
Number of events
2013
2012
2013
78
63
21,860
51,917
1,120
5,809
127
666
When processing each loan application, E&S risk was classified by the client’s primary activity and transaction. If the
Procedure for E&S risk management prescribed so, further E&S impact assessment was carried out for certain
risk categories before the relevant credit committee made
a decision. When the client and/or transaction was classified in higher risk categories pursuant the procedure, the
form “E&S Due Diligence” was filled out or the “E&S Impact Assessment” was prepared, pursuant to annexes to
the procedure.
27
COMPLIANCE RISK
AND ACTIVITIES FOR
MANAGING AML/TF RISK
RISK OF INAPPROPRIATE MANAGEMENT OF
THE INFORMATION SYSTEM
The Compliance and AML Department carried out identification and assessment of compliance risk in 2013 through
appropriate procedures pursuant to the Work Plan, in the
manner prescribed in the Compliance Risk Management
Procedure.
In 15 reports on compliance controls the finding was “acceptable subject to corrections” within agreed deadlines, while in
2 reports the finding was “complied” because all controlled
processes were carried out in accordance with regulations
and procedures of the Bank.
In general, upon controls of the implementation of regulations
and internal by-laws, we may conclude that no high compliance risks were identified because for all minor irregularities
recommendations for their settlement were provided and implemented within the defined deadline.
Managing AML/TF risk was done also through daily activities
of staff in the Department: control, analysis and report of cash
transactions and persons participating in transactions in the
amount and exceeding EUR 15 thousand to the Administration
for the Prevention of Money Laundering. In 2013 there were
2,050 reported transactions.
The aim of managing risk of inappropriate management of
the information system was to minimise negative effects that
might arise from the exposure of the Bank’s information system to public networks, malicious internal attacks, hardware
breakdown, sabotages and maintenance of these exposures
within the prescribed limits.
Accordingly, the Bank adopted the Information System Development Strategy, Business Continuity Strategy, Exit Strategies for Activities Subcontracted with Third Parties and Information System Security Policy. Furthermore, a set of new
quality system procedures and guidelines was adopted in line
with the NBS Decision on Minimum Standards for Managing
Information System of Financial Institution.
The Bank’s information system had all functionalities to support business processes, provided the timely, accurate and
complete information important for making business decisions and risk management.
For the purpose of quality information system management
the Bank established the IT Committee.
The Compliance and AML Department particularly focused
on monitoring, analysing and detecting suspicious transactions. Upon the analysis of transactions and relevant documentation, 3 suspicious transactions were reported to the
Administration for the Prevention of Money Laundering
FINDINGS AND RECOMMENDATIONS BASED ON CONTROLS IN 2013
Findings
Recommendations
No.of performed
controls
Complied
Acceptable subject to
corrections within
agreed deadlines
Non-complied
Implemented
Undergoing
17
2
15
-
32
-
MIHAIL DUDAŠ
DECATHLON
ORGANISATION
30
ORGANIsATIONAL
sTRUcTURE
SHAREHOLDERS'
ASSEMBLY
ALCO
BOARD OF DIRECTORS
Audit Committee
Credit Committees
Internal Audit
Department
Liquidity Committee
Compliance and AML
NPL Monitoring and
Recovery Committee
EXECUTIVE BOARD
IT Committee
Quality Committee
TREASURY
BRANCH NETWORK
RISK MANAGEMENT
ACCOUNTING
AND PLANNING
CORPORATE CLIENTS
LEGAL DEPARTMENT
IT
OFFERING AND MARKETING
SECURITY DEPARTMENT
PAYMENT OPERATIONS
HUMAN RESOURCES
BACK-OFFICE
QUALITY SYSTEM
FIXED ASSETS
MANAGEMENT AND
PROCUREMENT
31
bRANcH NETWORK
Headquarter
Branch
SME Credit Center
Sub-Branch
Novi Sad
Šabac
Novi Beograd
Beograd
SME Credit Center
Valjevo
Mladenovac
Aranđelovac
Topola
G. Milanovac
Kragujevac
Jagodina
Čačak
Užice
Paraćin
Kraljevo
Požega
Kruševac
Vrnjačka Banja
Ivanjica
Niš
Leskovac
32
HUMAN RESOURCES
At the end of 2013 there were 391 employees in the Bank,
which was an increase of 0.51% as compared to the end of the
previous year.
QUALIFICATION STRUCTURE
VS. NUMBER OF EMPLOYEES
400
380
3%
300
200
35%
11%
389
391
2%
3%
36%
11%
AGE STRUCTURE VS.
NUMBER OF EMPLOYEES
400
380
27%
33%
389
391
27%
26%
18%
18%
300
10%
University
Two-year
college
21%
30 to 40
200
40 to 50
Regarding the qualification structure of the employees,
the Bank fulfilled the anticipated share of the employees
with a university degree, making up 53.70% of the total
number of employees. The share of employees younger
than 40 years of age was 56% which was also in compliance with the plan. The average age was 41.
36%
39%
19%
17%
Over 50
100
17%
2011
54%
2013
51%
2012
2011
51%
35%
2013
Other
2012
High school
100
Up to 30
The salaries, fringe benefits and other personal expenses
amounted to RSD 492,683 thousand during 2013 accounting for 86.74% of the planned budget for this purposes.
Training expenses of staff in 2013 equalled RSD 6,507
thousand or 92.96% of the budget.
33
MANAGEMENT OF ČAČANsKA bANKA
EXECUTIVE BOARD
Dragan Jovanović
Aleksandar Ćalović
Milanka Mandić
President
Vice President
Member
RISK MANAGEMENT
Dušica Erić
Head of Division
CORPORATE BANKING
Vladimir Ćurčić
Head of Division
TREASURY
Ana Raketić
Head of Division
IT
Milan Delić
Head of Department
BRANCH NETWORK
Radojica Popović
Head of Division
Marijana Nedeljković
Čačak Branch Manager
Zlatko Mitrović
Aranđelovac Branch Manager
Jovan Tomović
Belgrade Branch Manager
Aleksandar Mijailović
SME Credit Centre Manager
Zoran Isailović
Gornji Milanovac Branch Manager
Saša Milovanović
Jagodina Branch Manager
Boban Luković
Kragujevac Branch Manager
Đorđe Zelenović
Kraljevo Branch Manager
Milić Cvijović
Užice Branch Manager
Milka Vujić
Valjevo Branch Manager
Maja Simić
New Belgrade Branch Manager
Borislav Obradović
Kruševac Branch Manager
Srđan Petrović
Šabac Branch Manager
Nataša Pantović
Novi Sad Branch Manager
Dušan Rađenović
Niš Branch Manager
OFFERING AND MARKETING
Biljana Jovanović
Head of Division
ACCOUNTING AND PLANNING
Petar Pantović
Head of Division
LEGAL DEPARTMENT
Ljubinko Veličić
Head of Department
HUMAN RESOURCES
Milica Vučetić
Head of Department
QUALITY SYSTEM
Milena Lučić
Head of Department
INTERNAL AUDIT
Vesna Mitrović
Head of Department
COMPLIANCE AND AML
Nada Sjeničić
Head of Department
BACK-OFFICE
Marko Pavlović
Head of Department
PAYMENT OPERATIONS
Marija Jovanović
Head of Department
FIXED ASSETS MANAGEMENT
AND PROCUREMENT
Slobodan Novaković
Head of Department
SECURITY
Budimir Ćuslović
Head of Department
REAL
VALUES
AMELA TERZIĆ
1500 METERS
36
SOCIALLY RESPONSIBLE
OPERATIONS
SUPPORT TO QUEEN OF SPORTS
The global success achieved by Serbian national team athletes
aroused feelings of happiness and pride and gave encouragement to the whole nation. Winning the best medals and beating records are expressions of their great talent, training and
commitment to obtain the highest possible results, regardless
of any difficult circumstances they might encounter.
financial support to Tatjana Jelača (javelin throw) and Asmir
Kolašinac (shot put), and their coaches.
Wishing to help our athletes, Čačanska banka started cooperation with the Serbian Association of Athletes through
The successful cooperation with the Serbian Association of
Athletes continued in the joint production of the 2014 calender
The aim is to ensure as good as possible conditions for them
to prepare for future competitions, primarily the Olympic
Games in Rio de Janeiro in 2016.
ASMIR KOLAŠINAC
Asmir Kolašinac is a member of the Serbian national athletics
team in shot put. He was born in Skopje in 1984.
He participated at the Beijing Olympic Games in 2008 and in
London in 2012 (the 7th place), the 2009 World Championship in
Berlin, 2011 World Cup in Doha, 2010 European Championship in
Barcelona, 2011 World Championship in Daegu, 2012 World Cup
in Istanbul and this year’s Moscow World Cup (the 10th place).
At the Helsinki European Championship 2012 he won a bronze
medal, and at the 2013 European Athletics Indoor Championship in Gothenburg a gold medal.
His personal record in shot put is 20.85 m. His coach is Nikola
Tomašević.
TATJANA JELAČA
Tatjana Jelača is a member of the Serbian national athletics
team in javelin throw. She was born in Sremska Mitrovica in 1990.
At the 2007 World Youth Championship in Ostrava she took the
sixth place and the following year at the World Youth Championship in Bydgoszsz a bronze medal. At the 2009 European
Junior Championship in Novi Sad she won a gold medal. She
participated at the Beijing Olympic Games in 2008. She was in
finals of the 2010 European Championship in Barcelona and
Helsinki European Championship 2012.
She made her personal record of 62.68 m at the qualification
of the World Cup in Moscow recently, where in the finals she
ended up as the 9th in the world in this discipline. Her coach
is Dragiša Đorđić.
37
TOGETHER IN
LIFE STRUGGLE
During 2013 Čačanska banka supported the campaign “May new
life be born” of the Health Care Centre in Valjevo. The aim of the
campaign was to collect funds for the purchase of equipment for
the Centre for Artificial Insemination “Akademik Vojin Šulović”
which is the first institution of secondary health protection in Serbia that has been performing artificial insemination.
BOOKS FOR
THE CITY
LIBRARY
In March 2013 Čačanska banka donated to the City Library
«Vladislav Petković Dis» in Čačak more than 200 books published
by the «Official Herald». They are new and valuable editions,
mostly expert literature, which have become part of the cultural
heritage of the library, to the delight of numerous readers and
book lovers. Čačanska banka also gave a financial support for
printing of the book with a collection of Dis’ poems and his most
comprehensive biography ever.
“ZONA ZAMFIROVA”
PLAY
On the occasion of its 57th birthday Čačanska banka presented to its clients and employees a stage play “Zona Zamfirova”
by Terazije Theatre, staged at the Cultural Centre in Čačak.
The play is a musical based on a piece written by Stevan
Sremac. It is a love story of a couple belonging to different
social classes that really happened towards the end of the
19th century.
38
“THE SEEDS
OF SUCCESS”
For the eighth time in a row Čačanska banka gave awards «The
Seeds of Success» to young people who achieved best results
in their education so far. Jelena Urošević, the best student of
the final year in the Grammar School in Čačak, Danka Savić,
the best student of the final year of the Faculty of Economics
of Belgrade University from Čačak and Đurđica Delić, the best
student of the final year of the Faculty of Economics, attending
the Course of Finances, Banking and Insurance were awarded.
The Grammar School student received EUR 300 and the best
students EUR 500 each.
FACEBOOK AND ČB INFO
Following the development of modern trends and new technologies, Čačanska banka recognised an opportunity to improve the
existing and develop new communication channels and sale.
ANDROID INFO
APPLICATION
The application enables getting information on all news from
Čačanska banka, including locations of branches and ATMs, foreign exchange rate list and checking up the current account balance. Transactions may be simulated through credit and savings
calculators, and via My Budget option you can take care of your
own budget. ČB Info application can be uploaded free of charge at
Google Play and may be useful both for clients and non-clients.
39
FACEBOOK
Čačanska banka launched a corporate page at the
largest global social network Facebook. In this way the
Bank aims to directly communicate both with customers and other interested members at the network. The
Bank will endeavour to educate people on economic
and business topics but also promote social values
of significance to it, such as culture, sports, science,
environmental protection. Through interactive posts –
games, surveys, quizzes, the Bank achieves high quality relationship with all network users.
CERTIFICATE
Recertification of the quality management system under
standard ISO 9001:2008 requirements was carried out in
March 2013 by Swiss certifier SGS. That was the sixth time,
the fourth time by SGS, that the Bank was awarded a certificate for its quality management system.
At the end of 2013 SGS appraised the information security
system. The Bank was awarded a certificate complied with
standard ISO 27001:2005 requirements for the first time.
40
BIODVIG | KRAGUJEVAC
HONEY AND HERBAL PRODUCTS
In the photograph: Dosta Palić with sons Goran and Igor employed at BioDVIG d.o.o.
BioDVIG is a family company from Kragujevac. Their assortment of products is based on bee products and herbs. BioDVIG was founded in 2002 by Velimir Palić, a biology teacher,
who was forced to leave Prizren three years before with his
wife Dosta and sons Igor and Goran, and start a new life outside of Kosovo and Metohija.
The new beginning of Palić family was related to the family tradition of beekeeping. They established a “bee farm” consisting
of a couple of hundred beehives for the purpose of producing
honey and other bee products: propolis, beebread and pollen,
combined with herbs, which was narrow specialisation of Velibor Palić. Today BioDVIG is one of the most successful Serbian
companies in this industry, which processed and distributed
1,200 tons of honey to the European Union market during 2013.
The story of their business success, commitment and responding
to challenges was told to us by Dosta Palić, who, after her husband
Velimir suddenly died in October 2012, continued bravely, devotedly and successfully to manage the company with their sons.
- In the beginning of 2002 we took some risk because we did
not have money, but we had a vision that the enterprise would
succeed, and acknowledgement and encouragement from our
surrounding that our business idea and the range of products
had a future. We invested everything that we had to launch the
family enterprise and patiently, step by step, made additional
investments until we got the firm that we have today.
From the very beginning the vision of the company was high
quality of products and satisfaction of clients. With that motto, Palić family gradually penetrated the market, promoted its
product range and enriched the assortment of BioDVIG. Soon
the production became standardised according to ISO and
HACCP standards, while the capacities were multiplied.
Part of the success lies in the fact that BioDVIG is committed to
excellent cooperation with single beekeepers from whom they
purchase honey. Being beekeepers themselves, Palić family did
their best to obtain as good as possible conditions for their peers,
forming a network of more than 1,000 producers. The mission of
improving and developing beehiving has been achieved through
the newly established “Teacher Velimir Palić” Foundation.
Mrs. Palić found out about the BusinessUp credit line owing
to agility of employees in Čačanska banka Kragujevac Branch.
The funds were used for the purchase of a fork-lift truck which
considerably facilitated and accelerated operations.
We used the loan for equipment and current assets and we
believe that this year we will enter a similar arrangement,
hoping that terms and conditions will be as convenient as
they have been so far. Apart from this loan we also have
overdraft with Čačanska banka for our daily needs.
As a successful entrepreneur, Dosta Palić tends to be informed
and expand her knowledge and pieces of advice offered at
www.businessup.rs are of great help. She expressed her satisfaction with cooperation and communication with representatives of Čačanska banka: We are family people and are easily
attached to others both on private and business terms. We
are very happy with cooperation, particularly regarding foreign operations, and I can say under full responsibility that no
bank shows so much responsibility as Čačanska banka does.
41
BERKUT | KRALJEVO
LUXURIOUS PAPER BAGS AND PACKAGING
In the photograph:
Aleksandar and Predrag Dačović, owners of Berkut d.o.o.
The enterprise Berkut from Kraljevo was founded in 2002 with
the aim to become a leader in the area of graphic processing and
production of luxurious paper bags and packages. The founder
is Mr. Aleksandar Dačović, who wanted to implement in Serbia
his experience that he gained in printing companies in Italy, by
establishing the enterprise together with his brother Predrag.
The enterprise is export oriented, as they sell 80% of their products at the EU market in Italy, France, Belgium etc. For over 10
years of operations, they have produced more than 12 million units
of luxurious packaging of the highest quality. Luxurious packaging and other items produced in plants of Berkut bear marks of
leading world and domastic brands, of which the most known are:
Yves Saint Laurent, Stella McCartney, Fossil, Lindt, Moschino, Gillette, Manella, Irakli, Pupa, Maruška, Princ Leather etc.
Mr. Dačović, as a client of Čačanska banka, was presented the
BusinessUp credit line, where he recognised a possibility to
apply for a loan for current assets.
- The new machine that we bought from the BusinessUp loan
is used for cardboard milling, which will ensure better quality and improved productivity in our company. In that way
Berkut’s products will become even more competitive and
attractive to foreign buyers. We are aware that investments
and permanent renewal of machine pool are necessary for
further business development.
Rearding difficulties that entrepreneurs face when obtaining
financial funds, the owner of Berkut says:
- Today it is not at all simple to fulfill requirements for loan
approval. However, owning to understanding of banks and
their employees, entrepreneurs manage to receive support.
It would be better if the approach to funds was easier and
loans for fixed and current assets were more accessible.
As an enterprise which is successful at foreign markets and which
manages to find clients for its products, all employees in Berkut
are aware that permanent education and improvement is necessary. One of the sources of business information and advice that
Aleksandar and Predrag Dačović use is BusinessUp.rs website.
- No doubt small and medium enterprises need improvement
beyond the activities and crafts that they are engaged in. In
that way their overall operations are improved. We tend to
improve ourselves in our basic activities, while we gladly accept and use any other support, such as BusinessUp advice.
Apart from the BusinessUp loan, the owners of Berkut are satisfied with other services provided by Čačanska banka. They particularly emphasize e-banking services as far more easier and
practical mode of payment than classical payment operations.
They are also rather satisfied with the relationship with employees
in Čačanska banka Kraljevo Branch and their approach to clients.
Aleksandar Dačović points out that there are some other activities and industries that he recognises in which it is possible
to achieve the top foreign sale, but Berkut’s plans are currently directed towards luxurious packaging and paper bags. At
the same time, he provides a piece of advice to other entrepreneurs and those who have just decided to commence an
entrepreneurial activity:
- You should recognise one idea and one product, and then put in
your maximum effort to develop such idea or improve the quality
of such product. After that you will accomplish the results that
would be recognised by both domestic and foreign clients. In a
nutshell, the absolute commitment to business together with
specialisation would be my piece of advice for all entrepreneurs.
FINANCIAL
STATEMENTS
EMIR BEKRIĆ
110 HURDLES
44
INdEPENdENT
AUdITOR’s REPORT
45
46
FINANCIAL STATEMENTS
STATEMENT OF INCOME
IN THE PERIOD FROM 1 JANUARY - 31 DECEMBER 2013
in RSD 000
Interest income
Interest expense
Net interest income
Fee and commission income
Fee and commission expense
Net fee and commission income
Net loss on the sale of securities carried at fair value through profit and loss
Net gains on the sale of other placements
Net foreign exchange losses
Dividend and other income from equity investments
Other operating income
Net losses on impairment and provisions
Salaries, fringe benefits and other staff expenses
Depreciation and amortization
Operating and other expenses
Net gains on the valuation of assets and liabilities
Net losses on the valuation of assets and liabilities
Operating profit
Operating loss
Result of the period (profit before taxation)
Result of the period (loss before taxation)
Income taxes
Gains from creation of deferred tax assets and reduction of decreased tax liabilities
PROFIT
LOSS
Basic earnings per share (in the dinar without para)
2013
2012
1,968,261
(858,355)
1,109,906
2,089,242
(991,656)
1,097,586
626,793
(73,890)
552,903
621,566
(62,398)
559,168
2,634
0
(157,139)
809
10,722
(707,970)
(492,683)
(95,763)
(507,028)
1,023,555
(866,231)
0
(126,285)
16,388
2
(1,251,175)
724
11,572
(592,263)
(455,094)
(87,680)
(515,775)
2,501,067
(1,227,535)
56,985
0
0
(126,285)
0
39,366
0
86,919
56,985
0
(8,109)
1,016
49,892
0
0
274
47
BALANCE SHEET
AS AT 31 DECEMBER 2013
in RSD 000
2013
2012
Cash and cash equivalents
3,121,017
3,005,508
Revocable deposits and loans
6,599,597
4,630,454
323,625
153,935
Loans and deposits to customers
21,322,483
22,593,427
Securities (excluding own shares)
806,358
1,156,808
17,189
18,288
605,646
130,765
35,761
24,405
775,304
814,745
59,010
19,644
150,152
284,028
33,816,142
32,832,007
5,018,878
3,594,744
12,918,276
13,084,632
8,792,485
8,405,382
ASSETS
Interest, fee and commission receivables, sale,
change in fair value of derivatives and other receivables
Equity investments (interests)
Other placements
Intangible assets
Property, equipment and investment property
Deferred tax assets
Other assets
TOTAL ASSETS
LIABILITIES
Transaction deposits
Other deposits
Borrowings
Liabilities under interest, fees and change in value of derivatives
Provisioning
Tax liabilities
Other liabilities
19,402
16,301
111,369
124,644
3,365
1,921
1,961,642
2,526,739
28,825,417
27,754,363
Capital
3,048,483
3,048,483
Reserves from profit
1,710,785
1,660,893
Revaluation reserves
311,085
318,376
TOTAL LIABILITIES
7,291
49,892
86,919
0
4,990,725
5,077,644
TOTAL LIABILITIES
33,816,142
32,832,007
OFF-BALANCE SHEET ITEMS
12,971,534
12,756,783
Profit
Losses up to the level of capital
TOTAL CAPITAL
300,450
279,697
Contingent liabilities
5,026,063
5,956,110
Derivatives
1,384,923
1,646,400
Other off-balance sheet items
6,260,098
4,874,576
Operations performed for and on behalf of third parties
48
CASH FLOW STATEMENT
IN THE PERIOD FROM 1 JANUARY – 31 DECEMBER 2013
in RSD 000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash inflows from operating activities
Interest receipts
Fee and commission receipts
Receipts from other operating income
Receipts from dividends and profit distribution
Cash outflows from operating activities
Interest payments
Fee and commission payments
Payments to, and on behalf of, employees
Taxes, contributions and other duties paid
Payments of other operating expenses
Net cash inflows from operating activities prior to
increases and decreases in placements and deposits
Net cash outflows from operating activities prior to increases
and decreases in placements and deposits
Decrease of placements and increase in deposits
Decrease in securities carried at fair value through profit and loss, trading
placements and short-term securities held-to-maturity
Increase in bank and customer deposits
Increase in loans and decrease in deposits held
Increase in loans and advances to banks and customers
Net cash inflows from operating activities before income taxes
Net cash outflows from operating activities before income taxes
Income taxes paid
Net cash inflows from operating activities
Net cash outflows from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Cash inflows from investing activities
Proceeds from the sale of intangible and fixed assets
Proceeds from the sale of investment property
Other proceeds from investing activities
Cash outflows from investing activities
Outflows for purchase of intangible and fixed assets
Other outflows from investing activities
Net cash inflows from investing activities
Net cash outflows from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Cash inflows from financing activities
Net cash inflows from borrowings
Cash outflows from financing activities
Net cash outflows under subordinated liabilities
Net cash outflows under borrowings
Net cash outflows under securities
Net cash inflows from financing activities
Net cash outflows from financing activities
TOTAL NET CASH INFLOWS
TOTAL NET CASH OUTFLOWS
NET INCREASE IN CASH
NET DECREASE IN CASH
CASH, BEGINNING OF YEAR
FOREIGN EXCHANGE GAINS
FOREIGN EXCHANGE LOSSES
CASH, END OF YEAR
2013
2012
2,498,413
1,786,058
706,722
5,099
534
(1,882,367)
(817,642)
(73,843)
(492,684)
(115,163)
(383,035)
616,046
2,725,258
2,009,708
705,798
9,612
140
(2,048,899)
(1,030,452)
(56,436)
(455,094)
(106,415)
(400,502)
676,359
0
0
2,074,055
960,410
1,407,456
149,699
1,113,645
(1,765,824)
(1,765,824)
924,277
0
(11,443)
912,834
0
1,257,757
(20,324)
(20,324)
2,063,491
0
(14,855)
2,048,636
0
52,330
14,901
9,618
27,811
(137,765)
(82,331)
(55,434)
0
(85,435)
10,193
1,697
8,496
0
(47,096)
(47,096)
0
0
(36,903)
293,686
293,686
(987,623)
(446,762)
0
(540,861)
0
(693,937)
4,918,484
(4,785,022)
133,462
0
3,005,508
68,094
(86,047)
3,121,017
0
0
(728,018)
(346,110)
(333,413)
(48,495)
0
(728,018)
4,142,907
(2,859,192)
1,283,715
0
1,643,736
208,893
(130,836)
3,005,508
49
STATEMENT OF CHANGES IN EQUITY
IN THE PERIOD FROM 1 JANUARY – 31 DECEMBER 2013
in RSD 000
2013
2012
1,821,160
1,821,160
1,821,160
1,821,160
1,227,323
1,227,323
1,227,323
1,227,323
Retained earnings
1,660,893
49,892
1,538,166
122,727
Balance, end of year
1,710,785
1,660,893
Effect of fixed assets assessment
318,376
(7,291)
314,963
3,413
Balance, end of year
311,085
318,376
49,892
(49,892)
7,291
122,728
(122,728)
49,892
7,291
49,892
SHARE CAPITAL
Balance, beginning of year
Balance, end of year
SHARE PREMIUM
Balance, beginning of year
Balance, end of year
BANK'S RESERVES
RESERVES FROM PROFIT
Balance, beginning of year
REVALUATION RESERVES
Balance, beginning of year
RETAINED EARNINGS
Balance, beginning of year
Transfer to reserves
Profit for the year
Balance, end of year
LOSS UP TO THE LEVEL OF CAPITAL
Increase over the year
TOTAL EQUITY
(86,919)
4,990,725
5,077,644
32000 Čačak - Pivarska 1; Tel: +381 32 302 100, 302 200, 302 203; Fax: +381 32 225 048, 348 898
E-mail: office@cacanskabanka.co.rs
www.cacanskabanka.co.rs