Annual Report 2012 Table of Content

ANNUAL REPORT 2012 TABLE OF CONTENT

01 02 03 MesSage CORPORATE CREDINS BANK from CEO GOVERNMENT ACTIVITies IN 2012

2 annual report 2012 CREDINS bank 04 05 06 STRATEGIC Our Financial Statement OBJECTIVES FOR 2013 Locations for the year ended 31 December 2012 and Auditor’s Report

annual report 2012 CREDINS bank 3 MESSAGE FROM Chief executive officer

4 annual report 2012 CREDINS bank Dear readers,

2012 was another important year for us. Our financial results for 2012 show both the progress we have made and the challenges that remain. In 2012, the Bank revenues, net of interest expense rose to Lek 4,7 billion or increased by 16% comparing to 2011. The net profit of Lek 669 million showed a decline comparing to 2011 but that was a reflection of increased reserve for loans loss. Obviously, our net profit does not yet reflect the work we are doing to strengthen capital, reduce risk and attract more business from our customers. There are many issues weighing not only on us, but on the entire financial services sector. These include concerns about the global economy, the implementation of new regulations and capital requirements, how these new rules may affect our ability to deliver for our customers and clients, and the time it will take to resolve collateral issues. There is more work to do, but today we are better organized to serve our customers and clients, to offer customers more reasons to do more business with us, to earn the Artan Santo, CEO profits our shareholders expect, and to contribute to economic growth in all of the communities we serve. We are pleased to announce that the Bank, by the end of 2012 continued to be ranked among the 4 largest banks in terms of assets, loan to customers and deposits.

Today we are better organized to serve our customers and clients,to offer customers more reasons to do more business with us.

annual report 2012 CREDINS bank 5 Total ASSETS Total deposits (in billions, at year end) (in billions, at year end)

91,825 77,715 84,217 71,395

71,020 62,165

2010 2011 2012 2010 2011 2012

During the past year, we made an intensive effort in the Bank to adapt our business to the complex and rapidly changing market environment. We started by setting our priorities, reviewing our objectives, and being aware of what it means to be one of the most important banks in Albania.

In November 2012, we developed a new strategy (2013-2015) which aspires to transform Credins into the leading client-centric universal bank. During the strategy definition meetings, we recognized that we operate in an environment of tighter regulation, more rigorous capital requirements, pressure on margins and business volumes, and historically low interest margins. We are preparing ourselves for a more complex relationship with the economy and with society, fiercer competition, additional regulation and tighter supervision.

There are four main elements to the strategy to build a more valuable Bank:

From a focus on corporate to serving the whole market equally; High emphasis on diversification and development on the basis of: Further strengthening of Retail business; Offering additional services not reliant on balance sheet; Continuing to keep strong relationships with the customers; Continuing product innovation. Build international reputation; From exclusively internal development to a consideration of acquisitions and joint ventures.

I am pleased to say that we are making good progress in each area.

6 annual report 2012 CREDINS bank RETURN ON EQUITY Loans to customers, net (at year end) (in billions, at year end)

25.4% 65,265 17,0% 58,632

8.1% 40,258

2010 2011 2012 2010 2011 2012

Our customers

Two years ago, we started on a path to make Credins Bank a less complex and stronger company. At the heart of our plan was a greater focus on the three groups of customers we serve — individuals, companies and public institutions — and to become their primary financial services partner.

Today, the network coverage couldn’t be better: Credins Bank has more than 47 branches in Albania. We learned that proximity to our customers is the key to a close partnership, and to shared success. For individuals, we have worked hard to launch a new e-banking solution and we believe this will further enhance their satisfaction as it will offer much more services that it offers now and they will transact in a more secure way and with very competitive prices.

We also increased our specialized sales force which helped providing customers improved access to bank specialists. As a result, deposits continue to grow nearly 10 % in 2012 from a year ago. After successfully launching the unique prepaid, re loadable Visa cards for the Albanian market, we enhanced customer satisfaction by increasing their benefits and fulfilling their needs in terms of managing their cash as well as their expectations on secure online shopping.

For companies, we are connecting them with our expertise and capabilities so they can do more and get the solutions they need. We continued to help our companies to transact, manage their cash and the risk of currency and interest fluctuations as we believe this creates value for our customers.

Our relations with public institutions have been strengthening from year to year as well. During 2012, the number of salary accounts increased by roughly 14000 employees to whom we served with additional value added services such as combined benefits of banking products and insurance services for free.

annual report 2012 CREDINS bank 7 Our people

I am proud to say every year that our people all around the country are absolutely committed to serving our customers and are often the difference between Credins Bank and our competitors. We believe that by being the best place to work for our employees they can better serve our customers, which in turn will drive better returns for our shareholders.

Every day I hear from customers and clients about how our employees have made a difference — helping a small business get up and running, advising a family on a financial plan for university, or bringing a large deal to a successful close.

We are firmly committed to our corporate social responsibility too. In 2012, we have started to integrate more decisively social responsibility in our business policies and the underlying processes.

As we are aware that we cannot continue to do business successfully in the long run without the acceptance of the society of which Credins Bank is a part. An extensive cultural change is one of the key levers of the new bank strategy. Building on our strengths and achievements to date, we intend to create added value in accordance with society’s values.

Success in business must incorporate social criteria and be sustainable, not just in the economic sense, but also from an environment and social perspective.

Looking ahead

As we think about what the future holds, with the team we have and the company we’ve built, there is good reason to be optimistic and excited about what lies ahead. We have leading capabilities and expertise that enable us to outdistance the competition and win in the marketplace.

We are focused on the horizon and committed to being better every day for those we serve, for the communities where we live and for each other.

We will continue to improve advice, service and products for our clients. We will increase operational efficiency, strengthen our capital base and manage our capital more efficiently. We will consistently fulfill regulatory requirements.

8 annual report 2012 CREDINS bank Our new strategy (2013-2015) aims to position Credins Bank as a winner in the changing environment. Developments of the past years reinforce our conviction that this strategy is the right course, and we will continue to devote ourselves to the interest of our clients, shareholders, employees and the wider society in which we operate.

Naturally, my colleagues and I are well aware that we will face many challenges and uncertainties this year, too. However, barring unforeseen obstacles, we will be able to reach our target by drawing on last year’s hard work and the momentum gained from our accomplishments.

We look forward to continuing to serve the interests of our stakeholder!

Artan Santo Chief Executive Officer

annual report 2012 CREDINS bank 9 CORPORATE GOVERNMENT

10 annual report 2012 CREDINS bank A MESSAGE FROM THE BOARD OF DIRECTORS

The Board of Directors of Credins Bank, during its periodic meetings has focused on important issues, such as the adoption of the business strategy, risk management and regulatory issues. Issues related to business performance and the control committee have been monitored as an important part of the topics reviewed by the Board members, having in mind not only on the progress but also setting directives for further improvement. Additionally, during 2012 the Recovery Department has followed up the reporting on the progress of the portfolio at risk, as well as the Special attention has alignment of bank policies with the amendments to been given to the the legislation regarding prevention and money approval of investments laundering. in new technological products of the bank as an important part of the competitive advantages in the market.

annual report 2012 CREDINS bank 11 BOARD OF DIRECTORS

12 annual report 2012 CREDINS bank SAJMIR SALLAKU Chairman

maltin korkuti monika milo clive moody Member Member Member BOARD OF DIRECTORS

Andon daka elona gjika GAël de pontbriand Member Member Member

annual report 2012 CREDINS bank 13 HUMAN RESOURCES ORgAnISATIOnAL ChART

SHAREHOLDERS ASSEMBLY

INTERNAL AUDIT BOARD OF AUDIT DEPARTMENT DIRECTORS COMMITTEE Alba QIRJAZI

CEO Artan SANTO

DEPUTY CEO DEPUTY CEO HUMAN RESOURCES LEGAL Monika MILO Maltin KORKUTI DEPARTMENT DEPARTMENT Ardian ANGONI Andon DAKA

ORGANISATIONAL PERFORMANCE UNIT MANAGEMENT UNIT Edit PRIZRENI Denada MUHARREMI

AML & BUSINESS RISK FINANCIAL OPERATIONAL CREDIT DIVISION COMPLIANCE DEVELOPMENT DEPARTMENT DIVISION Deniz DERALLA UNIT DIVISION DIVISION Aida OSMANI Selman LAMAJ Adja ANGJELI Sonila BIÇAKU

DEBIT AND RURAL LOAN BUSINESS LOAN DEBT RECOVERY INDIVIDUAL LOAN BRANCH NETWORK MARKETING IT TREASURY OPERATIONAL LOGISTIC FINANCIAL DEPARTMENT DEPARTMENT DEPARTMENT AND PROJECT CREDIT CARD DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT DEPARTMENT Marieta KARAPANÇO Migena ALIAJ Aida NASKA Anila MUÇMATA Çeljeta APOSTOL Florenca NANI Almida DAIU Dimitri TOSLLUKU Edlira HEBA Liljana REXHA Anketil MUJO Valentina PRODANI

HARDWARE AND COMMUNICATION UNIT DEBT RECOVERY SME UNIT CONSUMER LOANS MICROLOAN UNIT SUPPORT UNIT CUSTOMER Ardian SINANI SECURITY ECONOMIC CORPORATE UNIT UNIT ORIENTATION Egla BALLTA Anila GJONI Jason OROZI Alketa METUSHI UNIT UNIT Soﬁka NAZAJ Irena ÇALI Eltin QERAZI Albert DERVISHAJ Ardiana SINANI CORE BANKING APPLICATION UNIT Ilirjan OSMANI

14 annual report 2012 CREDINS bank SHAREHOLDERS ASSEMBLY

INTERNAL AUDIT BOARD OF AUDIT DEPARTMENT DIRECTORS COMMITTEE Alba QIRJAZI

CEO Artan SANTO

DEPUTY CEO DEPUTY CEO HUMAN RESOURCES LEGAL Monika MILO Maltin KORKUTI DEPARTMENT DEPARTMENT Ardian ANGONI Andon DAKA

ORGANISATIONAL PERFORMANCE UNIT MANAGEMENT UNIT Edit PRIZRENI Denada MUHARREMI

AML & BUSINESS RISK FINANCIAL OPERATIONAL CREDIT DIVISION COMPLIANCE DEVELOPMENT DEPARTMENT DIVISION Deniz DERALLA UNIT DIVISION DIVISION Aida OSMANI Selman LAMAJ Adja ANGJELI Sonila BIÇAKU

annual report 2012 CREDINS bank 15 HUMAN RESOURCES

The human Resources function ensures the Bank’s cohesion on the basis of shared values and management principles, promotes diversity and develops the pride of belonging to it.

Achieving the objectives of sustainability and reciprocity also involves listening to criticism and the suggestions of the bank’s employees. In 2012, for the first time an employee survey took place. 70% of the employee participated and generally the results were very positive.

On the basis of feedback received in this manner we prepared detailed action plans for all business areas. Implementation of the measures specified in the action plans is monitored on an ongoing basis.

Human Resource Policies are entirely focused on transforming Credins Bank into the best employer in the country, by providing an environment where every 105 employee can achieve their professional and career goals. new During 2012 Credins Bank successfully implemented the performance assessment system called M2P, aimed at establishing a successful employee profile, promoting employes values, culture, standards and ethics. By assessing some specific factors for each position, such as difficulties, in 2012 complexity and level of responsibility, this system helps to set the salary for each position.

The system considerably increased work efficiency and this was reflected both in terms of figures and results with 29 realised objectives, and in terms of motivation and job satisfaction. 76

Branch Network Headquarter

16 annual report 2012 CREDINS bank 647 total Employment at Credins Bank is a dynamic process accompanied employees with employee follow up, promotion and motivation, so that their experience with the bank is stable and progressive.

Trainings and Development: 242 Pursuant to Human Resource policies on recruitment, 405 development and motivation of existing and new staff, during 2012 many training were organised, among which it is worth mentioning the project “Credins Academy” (Akademia Credins).

Branch Network Headquarter “Credins Academy” is the successful scheme of orientation, education on the banking system and recruitment of new staff.

Through “Credins Academy” during 2012 around 70 young people were trained by attending 9,000 hours of theory and practice, out of whom 26 were selected as bank employees. In the same context of professional development, during 2012 Credins Bank provided financial support for Master’s study fees for all the employees interested in investing in their 24.873 professional and academic careers. Focusing on the development of the main asset of the bank, increasing effectiveness, efficiency, performance for each training hours employee with the final goal of creating a professional and welcoming environment to increase our customers’ satisfaction:

2673 24,873 total training hours and 3,109 total training days were conducted with 544 employees trained at least once a year. The 3720 average of training hours per employee is 46.1 hours. During 2013 the Bank aims to review the employee remuneration policies so as to focus more on those positions, whose activity affects the risk profile of the Bank.

Branch Network Headquarter

annual report 2012 CREDINS bank 17 SOCIAL responsiBILITY

The corporate social policy followed in 2012

Social responsibility for Credins Bank has now turned into a major priority, finding significant space for implementation during the whole year. It is substantial in order to transmit the stable reputation and reliable image of Credins Bank.

Services aimed at increasing customer loyalty to the bank will be on focus during 2013.

Credins Bank will continue to contribute actively by supporting important activities for the community, and it will further promote its commitment to the environment, culture, education, sports, etc. Credins Bank will be further expanding by encouraging the bank employees to be actively involved to support the community or protect the environment, and also through sponsorships.

1818 annual report 2012 CREDINS bank The social responsibility of Credins Bank is focused on the following main pillars:

1. Professional development and care towards bank employees: In this framework the bank is today a partner in the provision of Master Degree programs in “Luarasi University”, by giving each employee funding opportunities for the further enhancement of their knowledge and skills and supporting the development of their personal careers. The Bank is the main partner in life and health care for all its employees. The existing agreements offer free annual check-ups for all employees in the best clinics in the country and an opportunity to be examined by the best doctors for all their needs.

2. Social relations and community assistance Credins Bank is committed to support the vulnerable groups of society through sponsorships, where we can mention the financial support for Albanian Red Cross activities, Albanian Children Foundation “Domenick Scaglione”, the National Association of Retired Persons, or the yearly Christmas gifts for the children of SOS Children’s Village.

3. Support and promotion of art and culture By enhancing the value of education, cultural and social life, we try to build trust in individuals’ skills, for either customers or employees, on whom depends the success of our business and future. Credins Academy, for instance, gave many young people the opportunity to obtain basic knowledge on the banking system. An added value for this year was the support given to the Theatre of Opera and Ballet, the Albanian Excellence programme, the “Studenti” volleyball team, or equipping the reading room of the Department of Dormitories in Tirana with computers.

4. Environmental care During its course of work, Credins Bank takes care of the environment not only through sponsorships but also through green products, where we can mention: “The loan for energy efficiency and energy saving in cooperation with IFC”. Furthermore, during 2012 green areas have been created for Sanatorium Hospital, Municipality of Kavaja or plants were planted along roads in Kamza Municipality.

5. Customers and meeting their needs with tailored, innovative and low cost products Our customers will have the opportunity to cooperate and choose as their business partner an innovative and avant-garde bank. To reduce bank operations costs and bring the bank closer to the customers, we introduced the improved e-banking platform free of charge and with more services.

annual report 2012 CREDINS bank 19 CREDINS BANK ACTIVITies IN 2012 Our business segments

20 annual report 2012 CREDINS bank We designed new

offers and products, Retail which essentially “Serving the Customer by meeting not only constituted added value their needs but also their desires” was the service motto for all our retail customers for our customers, during 2012. This was best reflected in designing new products and offers, which conveying the message: essentially constituted added value for our customers, conveying the message: “More “More benefits” benefits for our customers!” It is also worth mentioning “Friends” deposit or “Extra benefits for VISA cardholders”. “Friends” deposit came as an appreciation for the existing customers and a method for approaching new customers. Under the slogan: “Who brings a friend, find a treasure”, this deposit provided specific benefits for those customers who chose to recommend us as the bank that satisfies their needs and beyond. For every friend referred to our bank, the friend and the customer benefited a bonus interest rate of 0.5% more than the bulletin published rates.

To boost the customer loyalty, until the end of 2012 each customer that used a VISA debit or credit card obtained free life insurance and up to 40% discount in medical services, diagnosis or surgical interventions in the highest quality clinics or hospitals in Albania, part of the medical network that collaborate with SiCRED insurance company.

Micro

Credins Bank operates in financing small and micro enterprises since 2008 by playing an active role as an encouraging factor to formalise and develop this sector. The Bank is now consolidated and known for its flexible, non- bureaucratic and customer tailored financing schemes supported by indicators since 2008, which show that we have served to around 8,500 small or micro enterprises.

annual report 2012 CREDINS bank 21 Retail Banking

The activity managed by Mr Përparim Vukaj started 4 years ago and now it gained stability in the sector of trading decorative plants and citrus plants in the area of Fushë Kruja.

This is what Mr Vukaj says about the cooperation with our bank: “Due to the business progress and market development in this sector, we faced the need to develop and expand our business. In order to reach our objectives we needed financial support”.

We went to Credins Bank, which within a short period of time understood our need and approved the estimated and proposed amount of money. Through this loan, our work increased significantly. Translated in figures, it grew by approximately 50%.

Without this financial support it would have been impossible for us to achieve this working pace. Our wish is to continue cooperating with Credins Bank as we plan to expand our business further by investing in fixed assets.

2222 annual report 2012 CREDINS bank INCREASE

I am convinced that Credins Bank fully understands our needs!

annual report 2012 CREDINS bank 23 Corporate banking

“Hidroalbania Energji” ltd, a company that operates in the design, constructing and transfer of hydropower plants in Borje, Oreshkë, Cernalev and Cernalev 1, was established in 2009.

The object of its activity is: Increase electricity generation in Kukës District by installing and using modern technology and provide power supply to the whole region. Here is what Mr Kolgjini says about the relations with Credins Bank: “Hidroalbania Energji” ltd started its cooperation with Credins Bank in 2011. I feel very relieved and confident!

24 annual report 2012 CREDINS bank Reliable support to successfully conclude and efficiently operate our investment!

annual report 2012 CREDINS bank 25 Corporate banking

In the framework of tailored service to important business segments, Credins Bank invests in professional human assets and efficient structures.

The Loan Division staff and specifically the staff of SME and Corporate Loan Department have now several years of experience and are ready to provide the customers with the best banking alternative in Albania, guaranteeing reliability, effectiveness, security and customer-oriented service.

The Corporate Segment in Credins Bank provides a wide range of products, services and structured financial solutions that comply with the business needs. The dedicated customer service andthe good knowledge of their diverse needs have resulted in strengthening the business relationships with industry operators, such as: Energy sector, particularly the investments in renewable energy, infrastructure projects, telecommunication, trade, pharmaceutical sector, etc. Despite the economic contraction and the situation created by the global financial crisis, the corporate segment in Credins Bank has increased considerably the loan and deposit portfolio.

Even during 2012 the financing of corporate segment achieved satisfactory levels as it was estimated. The customer base in this sector was increased by new customers and the relations with existing customers were intensified. The corporate loan portfolio increased by 10.20% as compared to the previous year. The management of nonperforming loans portfolio marked positive results regarding the recovery of the portfolio as compared to 2011. For the future the bank aims to further improve the lending structures and risk management policies to increase the financing efficiency and invest in economically sound activities.

26 annual report 2012 CREDINS bank ARTE G is a company that started operating in 2001 in Vlora. Today ARTEG is a leader in kitchen utensils; it is a consolidated company, focused on import and wholesale and retail sale of utensils, household appliances, appliances for bars and restaurants, etc. Thanks to the cooperation with Credins Bank, Arteg has extended its business to 5 points of sale in Tirana, Vlora, and it is widely present in big hypermarkets in Albania and the region.

The President of the company, Mr Flamur Zenelaj, gives his maximum appreciation for the cooperation with Credins Bank. He says: We share our success with Credins Bank. We are really satisfied with the staff, which facilitates our work through the quality service they provide. The relations with Credins Bank are based on a mutual trust consolidated over the 9 years of work together, Credins Bank has thus I tell you: “Trust Credins Bank with your always been by our success, they will always be by your side” side and without 9 doubt it has been part years of our 9 years journey.

annualannual report report 2012 2012 CREDINS CREDINS bank bank 27 Public Sector

Over the years Credins Bank has established excellent relationships with State Institutions, thus being ranked among the banks that collaborate with a considerable number of institutions. The Bank has maintained its leading position in cooperating with the Public Sector through strategies, products, services and dedicated communication systems, as per the requirements of this sector.

Credins Bank offers a high quality of service in managing the salary accounts through a diversity of products and benefits accompanied by low costs. It is worth mentioning:

The opportunity to repay the bank advances known as overdraft in instalments which facilitates better income and expense management without putting a strain on the customer.

The offer of extra and free of charge life and health insurance, and providing the opportunity to invest in voluntary retirement funds.

An indicator of the trust of individuals receiving salaries in Credins Bank was the considerable increase of their banking activity, where it is worth mentioning: The increase by 32% of the automatic transactions for the payment of bills known as direct debit.

2828 annual report 2012 CREDINS bank increase

The automatic financial transactions as compared to the previous year.

annualannual report report 2012 2012 CREDINS CREDINS bank bank 29 FINANCIAL INDICATORS FOR 2012

Credins Bank is certainly now one of the most important financial institutions in Albania which offers a full range of products and services for all categories of customers. The share of Credins Bank in the Albanian financial market during the last five years is consolidated, especially regarding the main items for total assets, loans and deposits. We have created a favourable environment and the necessary conditions for a long-term increase of shareholder’s value, by increasing the number of customers on yearly basis, extending the branch network and supporting the Albanian economy through strengthening the financial results with a positive balance sheet.

Total Shareholders’ Equity (in billions, at year end)

8.848 7.630

5.387

3.731 3.151

2008 2009 2010 2011 2012

profit after tax (in billions, full - year end)

669 1.656

667

525 739

2008 2009 2010 2011 2012

30 annual report 2012 CREDINS bank Business and retail

Business and retail 2011 2012

Gross porrfolio Clients Gross porrfolio Clients Loan figures in ‘000 Lek in number in ‘000 Lek in number

Individual loans 7,284,271 14,127 7,885,955 15,883 Micro Loan 1,800,954 3,573 1,982,658 3,886 SME 9,537,100 881 8,306,552 933 Corporate 43,766,550 357 50,577,202 369 Total portfolio 62,388,875 18,938 68,752,366 21,071

Financial highlights for the year

Balance sheet main financial 2011 2012 Change position lines (ALL ‘000) (%)

Gross Loan Portofolio 62,388,875 68,752,366 10.20% Loan Loss Reserve (3,757,179) (6,487,122) 72.66% Net Loan Portofolio 58,631,696 62,265,244 6.20% Investment securities 6,263,167 4,699,608 -24.96% Total assets 84,217,207 91,824,641 9.03% Deposit from customers 71,395,156 77,715,077 8.85% Subordinated debt 2,216,690 2,668,065 8.85% Shareholders’ equity (NBV) 7,629,897 8,847,603 15.96% Yield on Portofolio (% of Avg. GLP) 11.67% 11.17% -4.31%

Income Statement main lines (ALL ‘000)

Net interest income 4,075,474 4,743,918 16.40% Net, operational Income 5,072,110 5,596,993 10.35% Operating profit 3,406,638 3,699,545 8.60% Provision for credit losses, net (1580269) (2,890,778) 82.93% Profit before tax 1,826,369 808,767 -55.72% Taxes and provisions for taxes (170,142) (139,719) -17.88% Profit after tax 1,656,227 669,048 -59.60%

Asset quality

Portfolio loans at Risk 30 days % 14.06% 19.90% 41.53% Non-performing loans % 10.79% 14.08% 30.47% LLR % / Non-performing loans 55.80% 67.00% 20.08% LLR % / Non-standard loans 43.80% 25.12% -42.66%

annual report 2012 CREDINS bank 31 STRATEGIC OBJECTIVES FOR 2013

The challenges for the future are expressed in our objectives with both a simple and complex purpose: “Consolidation of the leading position in the market, financial performance stability and on-going quality service”. According to the working philosophy in Credins Bank, the essence of banking services in the retail and corporate sector, is increasing existing relations and investing in them. It is precisely by keeping and developing existing relationships that the bank progresses forwards.

Further penetration in the market, and quality and customised services for all categories of customers will be a substantial part of the new strategy for 2013. The common denominators for the paths selected to achieve our target are investments in assets, innovation and technology. We will consistently look for competitive advantages by bringing innovation regarding product development, differentiation based on customer service, further diversification of the customer base and establishing an international reputation, starting with expansion in the region.

Cooperation with strategic partners will be another target through which the bank will strengthen its position and will give added value to the services provided to different market sectors. We can mention here the establishment of cooperation between Credins Bank and Albanian Savings and Credit Union, helping the expansion of the Bank’s activity further to rural areas.

During 2013 Credins Bank will intensify the cooperation agreements with insurance companies, because we believe that the combination of financial products increases considerably not only the customers’ direct benefit but also the diversity of services that fulfil all their needs. It is precisely to encourage customers to use and benefit from such combined products, that cooperation with Sicred Company will be renewed. This cooperation will also provide not only life insurance and discounts for health services, but also personalized packages of insurance and banking products for both card holders and depositors.

32 annual report 2012 CREDINS bank The licences issued during 2012 for merchant acquiring in physical and virtual POSs marked the start of a new calendar year full of new challenges for the bank’s business, and also introduced an innovation for Albanian businesses regarding electronic trade. An objective for 2013 in this aspect will be providing access to target groups which directly benefit from these services, by giving the bank more diversification opportunities regarding the customer base.

Sustainable in success and persistence! With this important mission, any new enterprise which is expanding the customer base and diversifying the portfolio will be viewed in the light of a group of corporate values that constitute the essential principles and supporting pillars of the bank’s business development, as a corporate that grows on sound foundations.

Gross Loan Portofolio Net Loan Portofolio

9 8 increase% increase%

Deposit from customers equity capital

15% 24% increase increase

annual report 2012 CREDINS bank 33 branch network

SHKODËR KUKËS

LEZHË

PESHKOPI

BURREL

FUSHË KRUJË

DURRËS

TIRANË

KAVAJË ELBASAN

LUSHNJE

FIER

BERAT KORÇË BALLSH

VLORË

GJIROKASTËR

SARANDË

34 annual report 2012 CREDINS bank Tirana regions and number of employees

Region 1 Region 3 1. Tirana 1 branch 1. Tirana 5 branch 2. Elbasan branch 2. Tirana 6 branch 3. Korçë branch 3. Tirana 7 branch Region 1 103 employees 4. Tirana 2 branch 4. Tirana 8 branch 5. Laprake branch 5. Tirana 9 branch 6. Kamez branch Region 2 36 employees 7. Tirana 1 agency 8. Fushe Prezë branch 9. Vora branch Region 4 Region 3 41 employees Region 2 1. Tirana 4 branch 1. Tirana 3 branch 2. Tirana 11 branch 2. Tirana 10 branch 3. Tirana 13 branch 3. Tirana 12 branch 4. Tirana 15 branch Region 4 43 employees 4. Tirana 2 agency 5. QKR agency 5. Tirana 14 branch 6. Tirana 16 branch

Durrës region South region

Fushë-Krujë branch Sarandë branch

7 6 Shijak branch 13 Durrës 1 branch Berat branch 15 Fier branch 6 8 62 71 Kavaja branch Gjirokastër 8 employees 7 eployees Durrës branch South 11 Vlora 1 branch Region Region 11 Durrës 2 branch Shkozet branch 9 11 7 Vlora 2 branch 4 4 6 Durrës 2 agency Port agency Lushnje branch Ballsh branch

north region

Peshkopi branch 7 405 Shkodër agency 13 Lezhë branch 2 49 6 employees Burrel branch North Region employees Shkodër branch 14 Kukës branch 7 in total network

annual report 2012 CREDINS bank 35 Our Locations

HEAD OFFICE Tirana 1 BRANCH Rruga “Ismail Qemali”, Nr 4, Tiranë. Tel. (04 )22 34 096, 069 20 69666, (04 ) 22 50 994, Fax. (04) 22 22 916, e-mail. [email protected] Tirana 2 BRANCH Bulevardi “Zogu i I”, Qendra Veve, Tiranë. Tel. (04) 22 58 252, (04) 22 57 988, Fax. (04) 22 48 654 Tirana 3 BRANCH Kryqëzimi “21-Dhjetorit”, Tiranë. Tel. (04) 22 39 042, Fax. (04) 22 38 995 Tirana 4 BRANCH Rruga “Komuna e Parisit”, Tiranë. Tel. (04) 23 20 234, Fax. (04) 23 20 233 Tirana 5 BRANCH Rruga “Elbasanit”, pranë “Shkollës së Baletit”, Tiranë. Tel/Fax. (04) 23 47 809 Tirana 6 BRANCH Brenda Qendrës Spitalore Universitare “Nënë Tereza”, Tiranë. Tel (04) 23 76 305 Tirana 7 BRANCH Rruga Ali Demi. Tel/Fax. (04) 23 58 083 Tirana 8 BRANCH Rruga “Bardhyl”, (tek kryqëzimi i Rrugës “Bardhyl” me Rrugën “Hoxha Tahsim”) Tiranë. Tel. (04) 23 47 572 Tirana 9 BRANCH Rruga “Bajram Curri”, pranë kryqëzimit të “Shkollës së Bashkuar”, Tiranë. Tel/Fax. (04) 23 47 560 Tirana 10 BRANCH Rruga “Ferrit Xhajko”, ( ish-Frigoriferi), Tiranë. Tel. (04) 22 48 485 Tirana 11 BRANCH Rruga “Gjin Bue Shpata”, pranë stadiumit Selman Stermasi. Tel/ (04) 22 56 694 Tirana 12 BRANCH Pranë Shkollës “Harry Fultz”, Rruga “Jordan Misja”, Tiranë. Tel. (04) 22 35 439 Tirana 13 BRANCH Rruga “Myslym Shyri”, Tiranë. Tel. +355 4 24 21 223, Fax. +355 4 24 21 221 Tirana 14 BRANCH Rruga “Don Bosko”, Tiranë. Tel. +355 4 240 6367, Fax. +355 4 240 6368 Tirana 15 BRANCH Rruga “Luigj Gurakuqi”, pranë Ushtarit të Panjohur, Tiranë. Tel: (04) 22 58 128 Tirana 16 BRANCH Bulevardi “Gjergj Fishta”, Tiranë. Tel/Fax: (04) 24 19 672 Laprakë BRANCH Tek Blloku “Gintash” (dykatëshet) në Laprakë, Tiranë Tel : (04) 23 56789, Fax : (04) 23 56 285 VorA BRANCH Në qendër të Vorës. Tel. (047) 26 00 435; Fax. (047) 26 00 422 Kamëz BRANCH Në qendër të Kamzës. Tel. (04) 22 00 485; Fax. (04) 22 00 487 Fushë PrezA AGENCY Tek Kolaudimi i Automjeteve. TiranA 1 AGENCY Autostrada Tiranë – Durrës, Km 11, pranë Emigres Sh.p.k. Tel. (048) 23 01 260 TiranA 2 AGENCY Agjencia tek Hipoteka e Tiranës. QKR AGENCY Pranë Qendrës Kombëtare të Regjistrimeve, Tiranë.

36 annual report 2012 CREDINS bank Durrës BRANCH Bulevardi kryesor, Rruga Tregtare, Nr 42, Durrës. Tel. (052) 236 256, (052) 239 925, Fax. (052) 239 500 DURRËS 2 BRANCH Lagjja Nr.3, Rruga Egnatia. Tel. (052) 901 074, Fax. (052) 901 075 Durrës PORT AGENCY Tek sheshi i trageteve në Portin detar, Durrës. Tel/Fax. (052) 234 500 Durrës 2 AGENCY Pranë Qendrës Tregtare Industriale, Lagjja 17, Rr. Unazës, Durrës. Tel/Fax. (052) 236 257 Shkozet BRANCH Lagjja 14, Përballë Shkollës së Mesme “Olsi Lasko”, Shkozet, Durrës. Tel. (052) 237 668, Fax. (052) 237 669 Shijak BRANCH Lagjja “Kodër”, Shijak. Tel. (0571) 23 069, Fax. (0571) 23 070 Kavajë BRANCH Lagjja Nr. 5, Kavajë. Tel. (0554) 227 858, Fax. (0554) 227 859 Fushë Krujë BRANCH Lagjja “Kastrioti”, Fushë - Krujë. Tel. (0563) 22 489, Fax. (0563) 22 490 Fier BRANCH Bulevardi “Jakov Xoxe”. Tel. (034) 29 131, (034) 29 132, Fax. (034) 229 130 Lezhë BRANCH Lagjja “Besëlidhja”, Rruga “Luigj Gurakuqi” Nr 48. Tel. (0215) 23 500 VlorA 1 BRANCH Lagjja “Pavarësia”, Banesë 12 katëshe, Skelë, Vlorë. Tel. (033) 229 958; Fax. (033) 229 959 Vlorë 2 BRANCH Rruga “Demokracia”, Lagjja. “Osmen Haxhiu”, Vlorë. Tel. (033) 237 170 Elbasan BRANCH Lagjja “Aqif Pasha”, Rruga 28 Nëntori, (pranë Drejtorisë së Policisë). Tel. (0544) 224 213, (0544) 24 472, Fax. (0544) 24204 ShkodRA BRANCH Lagjja “Vasil Shanto”, Rruga “Vaso Kadia”. Tel. (022) 250 643, (022) 250 645, Fax. (022) 250 633 ShkodRA AGENCY Sheshi “2 Prilli” tek Hipoteka. Korçë BRANCH Bulevardi “Republika”, Lagjja 12. Tel. (082) 254 300, Fax. (082) 254 400 Lushnje BRANCH Bulevardi Kryesor, Ish-Hotel Myzeqeja. Tel. (022) 2986, Fax. (022) 2983 Kukës BRANCH Lagjja Nr.2 Pallati 67. Tel. (024) 224 903, Fax. (024) 224 904 Burrel BRANCH Lagjja “Pjeter Budi”. Tel/ Fax. (02172) 3404, Fax. (02172) 3414 Ballsh BRANCH Lagjja “5 Shkurti”. Tel. (0313) 23642, Fax. (0313) 23643 Peshkopi BRANCH Bulevardi “Elez Isufi”. Tel. (0128) 25624, Fax. (0218) 25625 Berat BRANCH Lagjja “22 Tetori”, Shëtitorja kryesore. Tel. (0322) 34 612, Fax. (0322) 34718 Gjirokastër BRANCH Rruga “18 Shtatori” Tel. (084) 266 308, (084) 266 307 Sarandë BRANCH Sheshi “Nënë Tereza”.

annual report 2012 CREDINS bank 37

Financial statements for the year ended on 31 December 2012 (independent auditor’s report)

Faqe 1 nga 50 Faqe 2 nga 50 Faqe 3 nga 50 Faqe 4 nga 50 Faqe 5 nga 50 Faqe 6 nga 50 Faqe 7 nga 50 Faqe 8 nga 50 Faqe 9 nga 50 Faqe 10 nga 50 Faqe 11 nga 50 Faqe 12 nga 50 Faqe 13 nga 50 Faqe 14 nga 50 Faqe 15 nga 50 Faqe 16 nga 50 Faqe 17 nga 50 Faqe 18 nga 50 Faqe 19 nga 50 Faqe 20 nga 50 Faqe 21 nga 50 Faqe 22 nga 50 Faqe 23 nga 50 Faqe 24 nga 50 Faqe 25 nga 50 Faqe 26 nga 50 Faqe 27 nga 50 Faqe 28 nga 50 Faqe 29 nga 50 Faqe 30 nga 50 Faqe 31 nga 50 Faqe 32 nga 50 Faqe 33 nga 50 Faqe 34 nga 50 Faqe 35 nga 50 Faqe 36 nga 50 Faqe 37 nga 50 Faqe 38 nga 50 Faqe 39 nga 50 Faqe 40 nga 50 Faqe 41 nga 50 Faqe 42 nga 50 Faqe 43 nga 50 Faqe 44 nga 50 Faqe 45 nga 50 Faqe 46 nga 50 Faqe 47 nga 50 Faqe 48 nga 50 Faqe 49 nga 50 Faqe 50 nga 50

Faqe 52 nga 50