Annual Report 2011 1 CONTENTS
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UKRAINE CZECH REPUBLIC SLOVAKIA AUSTRIA Graz HUNGARY ROMANIA SLOVENIA CROATIA BOSNIA AND HERZEGOVINA SERBIA MONTENEGRO BULGARIA KOSOVO Austrian Sparkassen Group at a glance MACEDONIA Extended home market of Steiermärkische Sparkasse ALBANIA Sparkasse Bank Makedonija АD Skopje - Annual Report 2011 1 CONTENTS Interview with the President of the Management Board ........................................................................................................................4 General Bank Data .................................................................................................................................................................................8 Bank’s Profile .............................................................................................................................................................................................9 Highlights 2011 ....................................................................................................................................................................................... 10 Business Activities .............................................................................................................................................................................. 14 1. Objectives and Environment ............................................................................................................................................................. 14 2. Financial performance ...................................................................................................................................................................... 15 3. Risk Management ............................................................................................................................................................................. 18 4. Corporate Banking ............................................................................................................................................................................ 20 5. Retail Banking ................................................................................................................................................................................... 22 6. Treasury .............................................................................................................................................................................................. 24 7. Borrowings .......................................................................................................................................................................................... 24 8. Processing ......................................................................................................................................................................................... 25 9. Information Technology .................................................................................................................................................................... 25 10. Marketing and Communication ....................................................................................................................................................... 26 11. Human Resources ............................................................................................................................................................................ 28 12. Internal Audit .................................................................................................................................................................................... 29 13. Anti-money Laundering and Terrorism Financing ............................................................................................................................ 31 14. Corporate Governance ..................................................................................................................................................................... 32 15.Compliance ......................................................................................................................................................................................... 35 Business Policy of Sparkasse Bank Makedonija AD Skopje for 2012 ........................................................................................... 38 А. Macroeconomic projections for 2012 ............................................................................................................................................. 38 B. Top objectives and tasks of the Business Policy of Sparkasse Bank Makedonija for 2012 ....................................................... 39 Plan of measures and activities for achieving the strategic objectives of the Business Policy for 2012 .................................. 40 1. Liquidity ............................................................................................................................................................................................. 40 2. Corporate strategy and corporate activities ..................................................................................................................................... 41 3. Retail operations and business network management ................................................................................................................. 42 4. Risk Management and collection of non-performing loans ........................................................................................................... 43 5. Price policy and Assets and Liabilities Management ..................................................................................................................... 44 6. Human Resources ............................................................................................................................................................................ 45 7. Marketing and Communication ........................................................................................................................................................ 46 8. Costs control ....................................................................................................................................................................................... 47 9. Compliance and AML ......................................................................................................................................................................... 48 10. Internal Audit ..................................................................................................................................................................................... 49 C. Quantifying Bank’s financial objectives .......................................................................................................................................... 52 Financial Statements Sparkasse Bank Makedonija AD Skopje for 2011 .................................................................................... 58 Independent Audit’s Report ................................................................................................................................................................. 58 Income statement ................................................................................................................................................................................. 59 Statement of Comprehensive Income ................................................................................................................................................. 60 Balance Sheet .........................................................................................................................................................................................61 Statement of Changes in Equity ........................................................................................................................................................... 62 Statement of Cash Flow ........................................................................................................................................................................ 64 General Information ............................................................................................................................................................................ 68 1. Organizational Chart ......................................................................................................................................................................... 68 2. Contacts ............................................................................................................................................................................................ 69 3. Branches location ............................................................................................................................................................................. 70 4. ATM’s location ................................................................................................................................................................................... 72 5. Correspondent banks ....................................................................................................................................................................... 73 6. Locations in Southeast Europe .......................................................................................................................................................