Annual Report 2011
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Annual Report 2011 Bulgaria Financial Highlights Financial Highlights Monetary values in BGN Thousand 2011 Change 2010 2009 Income Statement Net interest income after provisioning for possible 147,767 5% 141,072 141,662 loan losses Net commission income 57,318 8% 52,896 57,533 Trading profit (loss) 24,504 6% 23,130 23,020 Administrative expenses (185,183) 1% (183,095) (192,321) Profit before tax 55,659 16% 48,175 55,254 Profit after tax 50,800 16% 43,949 50,995 Balance Sheet Loans and advances to banks 454,285 (50%) 907,439 815,102 Loans and advances to customers 4,693,952 8% 4,342,671 4,529,761 Deposits from banks 160,899 (66%) 471,144 45,709 Deposits from customers 4,361,724 6% 4,125,204 4,323,653 Equity 947,435 2% 925,973 907,450 Balance-sheet total 6,448,269 (2%) 6,562,537 6,642,200 Regulatory own funds Total own funds 856,550 (3%) 884,906 919,739 Own funds requirement/According to Local Regulations 585,530 4% 563,123 631,468 Excess cover 271,020 (16%) 321,783 288,271 Core capital ratio (Tier 1) 15.98% (5%) 16.74% 15.03% Own funds ratio 17.55% (7%) 18.86% 17.48% Performance Return on equity (ROE) before tax 6.2% 13% 5.5% 6.6% Cost/income ratio 49.7% 4% 47.6% 52.9% Return on assets (ROA) before tax 0.9% 15% 0.8% 0.8% Provisions for possible loan losses/risk-weighted assets/ 363,677 23% 296,315 172,505 According to Local Regulations Resources Number of staff on balance-sheet date 3,474 0% 3,487 3,478 Banking outlets on balance-sheet date 185 (2%) 188 197 Official Exchange Rate (BNB) BGN BGN BGN 1 EUR 1.95583 1.95583 1.95583 Source: Audited Unconsolidated Financial Statements of Raiffeisenbank (Bulgaria) EAD as of 31 December 2011 4 www.rbb.bg General Information General Information Establishment of the Bank Raiffeisenbank (Bulgaria) EAD is the first greenfield foreign investment in the Bulgarian banking sector made in 1994. Main Shareholder Raiffeisenbank (Bulgaria) EAD is a 100 per cent subsidiary of Raiffeisen Bank International AG, Vienna. Banking License Raiffeisenbank (Bulgaria) EAD has a full banking license for domestic and overseas banking and financial operations. Profile Raiffeisenbank (Bulgaria) EAD is a universal commercial bank, providing services to large corporate customers, small and medium-sized enterprises, retail clients, financial institutions and institutional clients. The bank also performs bonds and securities trading on the local and the international money and capital markets, asset management, etc. The rating of Raiffeisenbank (Bulgaria) EAD: • Moody’s Bank Financial Strength D+/Negative In foreign currency: • Moody’s Short-Term Foreign Currency Deposit P-3 • Moody’s Long-Term Foreign Currency Deposit Baa3 • Moody’s Outlook Stable In local currency: • Moody’s Short-Term Local Currency Deposit P-3 • Moody’s Long-Term Local Currency Deposit Baa3 • Moody’s Outlook Stable Correspondent Relations Raiffeisenbank (Bulgaria) EAD has established correspondent banking relations with over 1000 banks world-wide and maintains accounts in major currencies with first-class foreign banks. www.rbb.bg 5 General Information Branch Network As of 31 December 2011 the bank operates through 185 offices, 44 outlets are located in Sofia. Raiffeisenbank (Bulgaria) EAD has a mobile network of 130 consultants, operating in 11 towns in the country. Raiffeisen Group in Bulgaria includes the following companies: Company Percentage of participation 100% ownership of Raiffeisen Bank International AG, Raiffeisenbank (Bulgaria) EAD Vienna, Austria Raiffeisenbank Services EAD 100% ownership of Raiffeisenbank (Bulgaria) EAD 24.5% ownership of Raiffeisenbank (Bulgaria) EAD; Raiffeisenbank Leasing Bulgaria OOD 75.5% ownership of Raiffeisenbank Leasing International GmbH, Austria Raiffeisenbank Auto Leasing Bulgaria EOOD 100% ownership of Raiffeisenbank Leasing Bulgaria OOD Raiffeisenbank Asset Management (Bulgaria) EAD 100% ownership of Raiffeisenbank (Bulgaria) EAD Raiffeisenbank Insurance Broker EOOD 100% ownership of Raiffeisenbank (Bulgaria) EAD Raiffeisenbank Real Estate EOOD 100% ownership of Raiffeisenbank (Bulgaria) EAD Raiffeisen Factoring EOOD 100% ownership of Raiffeisenbank (Bulgaria) EAD 6 www.rbb.bg Market Shares Market Shares Market shares of the 10 biggest Bulgarian banks Total Assets In BGN Thousand 11,906,377 15.50% 11,275,640 15.29% 8,563,281 11.62% 7,460,917 8,559,030 10.12% 11.14% 6,562,135 8.90% 6,101,669 6,309,255 6,715,464 7.94% 8.56% 8.74% 6,448,320 8.40% 5,998,483 4,077,093 4,043,060 5.53% 4,943,973 7.81% 5.26% 6.71% 3,288,653 4.28% 3,003,354 3,209,747 3.91% 2,922,076 4.18% 2,699,427 3.96% 3.66% 2,285,083 3.10% Unicredit DSK Bank United Raiffeisenbank First Eurobank EFG Corporate Societe Piraeus Central Bulbank Bulgarian (Bulgaria) Investment Commercial Generale Bank Cooperative Bank Bank Bank Expressbank Bulgaria Bank 31.12.2011 31.12.2010 31.12.2011 31.12.2010 The percentages indicate the market share of the respective banks. Source: Bulgarian National Bank Total Deposits 7,288,420 In BGN Thousand 13.80% 6,441,466 12.20% 6,539,298 13.93% 5,994,022 5,286,891 12.77% 10.01% 4,717,748 8.93% 4,400,704 4,355,199 9.38% 4,641,511 8.25% 4,205,020 9.89% 4,310,575 3,377,344 8.96% 4,116,116 8.77% 8.16% 6.40% 2,576,830 4.88% 2,045,994 3.87% 2,260,483 1,393,087 4.82% 1,924,786 2.64% 4.10% 1,697,449 3.62% 1,283,968 2.74% Unicredit DSK Bank First Eurobank EFG Raiffeisenbank United Corporate Central Societe Allianz Bulbank Investment (Bulgaria) Bulgarian Commercial Cooperative Generale Bank Bank Bank Bank Bank Expressbank Bulgaria 31.12.2011 31.12.2010 31.12.2011 31.12.2010 The percentages indicate the market share of the respective banks. Source: Bulgarian National Bank www.rbb.bg 7 Market Shares Total Loans 8,480,322 In BGN Thousand 15.13% 7,682,866 13.71% 8,054,337 14.96% 7,543,642 6,248,984 14.01% 11.60% 5,057,869 9.02% 5,417,121 9.67% 4,399,514 7.85% 4,272,405 4,639,034 7.62% 8.61% 4,351,907 3,164,094 8.08% 5.88% 2,684,818 3,479,170 4.79% 2,649,224 6.46% 4.73% 1,847,674 2,872,692 3.43% 5.13% 2,454,979 4.56% 1,712,013 1,642,353 3.18% 2.93% Unicredit DSK Bank United Raiffeisenbank Eurobank EFG First Piraeus Corporate Societe Alpha Bank S.A. Bulbank Bulgarian (Bulgaria) Investment Bank Commercial Generale Sofia Bank Bank Bulgaria Bank Expressbank Branch 31.12.2011 31.12.2010 31.12.2011 31.12.2010 The percentages indicate the market share of the respective banks. Source: Bulgarian National Bank Net Profit 232,041 In BGN Thousand 33.60% 210,000 180,000 130,579 150,000 17.91% 158,744 21.77% 120,000 74,367 90,000 10.20% 73,647 10.10% 85,318 12.35% 52,933 51,036 47,262 60,000 7.66% 7.39% 6.84% 60,951 36,503 34,942 8.83% 5.29% 4.79% 44,214 21,237 44,053 30,000 6.06% 30,838 2.91% 6.04% 30,064 30,337 4.23% 4.12% 4.39% 15,017 13,904 2.17% 0 2.01% Unicredit DSK Bank Corporate Piraeus Raiffeisenbank Societe First United Eurobank Citi Bulbank Commercial Bank (Bulgaria) Generale Investment Bulgarian EFG Bank N.A. Bank Bulgaria Expressbank Bank Bank Bulgaria - Sofia Branch 31.12.2011 31.12.2010 31.12.2011 31.12.2010 The percentages indicate the market share of the respective banks. Source: Bulgarian National Bank 8 www.rbb.bg Contents Contents Statement by the Chairman of the Management Board 10 Vision and Mission 11 Statement by the Chairman of the Supervisory Board 12 Management Report 14 Bulgarian Economy in 2011 14 Key Figures 17 Operations 19 Human Resources 20 Segment Reports 21 Corporate Banking 21 Retail Banking 22 Treasury and Investment Banking 24 Financial Institutions 26 Independent Auditors’ Report 27 Notes to the Financial Statements 34 Awards 90 Corporate Social Responsibility 92 The Bank’s Management 94 Raiffeisen Bank International at a Glance 95 Raiffeisen Leasing Bulgaria OOD 97 Raiffeisen Insurance Broker EOOD 98 Raiffeisen Asset Management (Bulgaria) EAD 99 Raiffeisen Factoring EOOD 102 Raiffeisen Real Estate EOOD 103 Raiffeisen Glossary 104 Addresses 106 www.rbb.bg 9 Statement by the Chairman of the Management Board Statement by the Chairman of the Management Board Dear Ladies and Gentlemen, In 2011, Raiffeisenbank (Bulgaria) improved its results despite the tough economic situation caused by the financial crisis. Profit after tax reached BGN 50.8 million, compared to BGN 43.9 million as at 2010-end. The bank’s net allocations to provisions for impairment losses amounted to BGN 131.9 million, the total amount of provisioning reaching BGN 363.7 million at year-end. Total assets amounted to BGN 6.45 billion, the loan portfolio increased by 9 per cent to BGN 5.06 billion, and the deposit base stood at to BGN 4.36 billion. In 2011 we again focused our efforts on the quality of service, efficiency and the offering of state of the art products and services. Our customer base grew by nearly 40,000 clients, which is another proof of our successful business model.