Tirana Bank 2013 Annual Report
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AFORWARD YEARTIRANA BANK 2013 ANNUAL REPORT A YEAR FORWARD ANNUAL REPORT / TIRANA BANK 20131 CONTENTS 1. MESSAGE FROM CEO 5.7. RISK 2. PIRAEUS BANK GROUP 5.8. COMPLIANCE 3. TIRANA BANK OVERVIEW 5.9. FUNDS TRANSFER 3.1. GENERAL INFORMATION 6. CORPORATE SOCIAL RESPONSIBILITY 3.2. BRANCH NETWORK: MAP AND 6.1. ENVIRONMENT ADDRESSES 6.2. SOCIETY 3.3. MAIN HIGHLIGHTS (TIMELINE) 6.3. CULTURE WHAT’S INSIDE 4. ECONOMIC OUTLOOK 6.4. EDUCATION 4.1. INTERNATIONAL ECONOMY 7. HUMAN RESOURCES 4.2. ALBANIAN ECONOMY 8. FINANCIAL STATEMENTS THIS REPORT 4.3. ALBANIAN BANKING SECTOR 8.1. CONTENTS OF THE FINANCIAL 5. TIRANA BANK DURING 2012 – 2013 STATEMENTS PRODUCTS, PERFORMANCE & OTHERS 8.2. INDEPENDENT AUDITOR’S REPORT 5.1. RETAIL BANKING 8.3. INCOME STATEMENT 5.2. SMEs BANKING 8.4. BALANCE SHEET 5.3. CORPORATE BANKING 8.5. STATEMENT OF CHANGES IN EQUITY 5.4. BRANCHES 8.6. CASH FLOW STATEMENT 5.5. TREASURY 8.7. NOTES TO THE FINANCIAL 5.6. TECHNOLOGY DEVELOPMENTS STATEMENTS A YEAR2 FORWARD ANNUAL REPORT / TIRANA BANK 2013 A YEAR FORWARD ANNUAL REPORT / TIRANA BANK 20133 Dear stakeholders The global economy has continued to portray a rather gloomy outlook for yet another year. The search for the dynamics that would stimulate activity and job creation has come in the form of new policy changes, efforts to restore the financial sector and fiscal consolidation. Without exception, 2013 has been a year of slowed economic activity for Albania with an even lower growth than last year. Moreover, the vulnerability to external and regional developments, MESSAGE especially towards the traditional neighboring economic partners, has remained strong. Nevertheless, the financial environment has remained stable and been made secure by closely monitoring monetary policy which has given some protection from potential economic shocks. Annual inflation was below 2% thus indicating slow economic activity, while investments, currently still subdued, has led to negative credit growth throughout the year. As part of the essential pillars of the monetary policy, the lowering of the key interest rates has led to an equivalent reaction by the commercial banks, resulting in a downturn in interest rates, both in deposits and loans. Continuing low consumer spending has changed FROMAs our clients are the CEOdriving force around which the the economic outlook. On the political front, structural reforms have been intensified in the direction of the country’s orientation towards Europe and in a publically stated effort to build bank strategic approach is built, we have remained consumer confidence. Tirana Bank has continued moving towards the realization of its strategic objectives in 2013 with prudence and committed to providing personal and business banking effectiveness in: solutions that would add real value to them and to their • Maintaining the bank’s capital base • Preserving adequate liquidity operations • Implementing essential risk management policies • Strengthening its AML policies and procedures • Successfully managing problematic portfolios Accordingly, the bank this year has taken all necessary action to strengthen its capital base well above acceptable levels while it has carried out a major refinement of its balance sheet in relation to its problematic portfolios. In addition, through a major reorganization of its operational structure, the bank has provided new capacity, in volume and quality, for the effective management of the problematic portfolios and other prioritized operational areas which required strengthening. At the same time the bank has managed to further improve its liquidity position. As our clients are the driving force around which the bank strategic approach is built, we have remained committed to providing personal and business banking solutions that would add real value to them and to their operations. In line with this, the bank aims to offer new favorable and rewarding retail products to its retail clients, in a transparent manner. Moreover, recognizing the importance of the SME sector for the economic well-being of the country, the bank has intensified its focus on openly supporting this critical business sector. At the same time, the bank, through a comprehensive and prudent lending policy, has also continued to embrace the corporate arm of the economy - the elite economic stratum. However, slow market demand for investments is the prevailing situation, as a result of investor skepticism in the light of the adverse economic outlook. In keeping with its avowed policy of corporate social responsibility, Tirana Bank has continued to be an active member of society. We have consistently aimed at being amongst those organizations that set a good example at all social and economic levels, including both companies and individuals. Any tangible achievement in this direction would necessitate leading the way to creating socially responsible behavior in the community at large. Accordingly, we have engaged the organization as a whole, as well as encouraged staff involvement in several environmental, social, cultural and educational activities throughout the year. Tirana Bank is entering 2014 with a clear view of its strategic objectives, aiming to add value to its shareholders and to all other stakeholders. As part of this effort, the organization is actively partnering with its staff, its clients and Albanian society to focus on those areas that it may have a direct or indirect impact on, through its positive contribution. However, it will closely monitor any developments in the wider economic sphere that may have adverse ramifications, so that we can implement contingencies. Looking ahead, we continue to demonstrate optimism, persistence and continual adaptation in the face of change - leading to healthy growth. Sincerely. Savvas Thalasinos Managing Director and CEO A YEAR4 FORWARD ANNUAL REPORT / TIRANA BANK 2013 A YEAR FORWARD ANNUAL REPORT / TIRANA BANK 20135 PIRAEUS BANK GROUPFounded in 1916, Piraeus Bank has operated as a private credit institution for many decades, while it underwent state ownership for the period 1975-1991 until it was privatized in December 1991. Since then, it has rapidly grown in size and activities, now being the leading Bank in Greece with 30% market share in terms of loans and 29% in terms of deposits. A YEAR6 FORWARD ANNUAL REPORT / TIRANA BANK 2013 A YEAR FORWARD ANNUAL REPORT / TIRANA BANK 20137 CORPORATE PROFILE - WHO WE ARE Piraeus Bank Egypt). Finally, in 2007, Piraeus Group Piraeus Bank Group December 2013 With its headquarters in Athens, Greece, and with expanded its international presence in Ukraine Assets €92.0 bn more than 22 thousand employees in its offices by acquiring the International Commerce Bank Net Loans €62.4 bn in 10 countries around the world, Piraeus Bank (renamed Piraeus Bank ICB) and in Cyprus by Deposits €54.3 bn Group offers a full range of financial products and establishing Piraeus Bank Cyprus through the EBA CT1 ratio 13.9% services to approximately 7 million customers. Total acquisition of the Arab Bank Cypriot network. Branches 1,449 assets of the Group amounted to €92 billion, net In 2012, Piraeus Bank acquired the “good” part of Employees 22.500 loans to €62 billion and customer deposits to €54 Agricultural Bank (selected assets and liabilities) Market cap (06 Mar 2014) €10.1 bn billion as at December 31, 2013. and Geniki Bank, a former subsidiary of Societe Founded in 1916, Piraeus Bank has operated as a Generale. In March 2013, Piraeus Bank acquired LONDON private credit institution for many decades, while the Greek banking operations of Bank of Cyprus, FRANKFURT it underwent state ownership for the period 1975- Cyprus Popular Bank and Hellenic Bank. In June 1991 until it was privatized in December 1991. Since 2013, Piraeus Bank acquired Millennium Bank UKRAINE then, it has rapidly grown in size and activities, now Greece, a subsidiary of BCP. These transactions ROMANIA being the leading Bank in Greece with 30% market represent important steps towards the restructuring SERBIA share in terms of loans and 29% in terms of deposits. of the Greek banking system, in which Piraeus Bank BULGARIA has participated as a major player from the very ALBANIA OUR OPERATIONS beginning. Today Piraeus Bank has successfully GREECE Along with its organic growth during the decades completed the integration of all the above 2012- of 1990 and 2000, Piraeus Bank has made a series 2013 banking operations (excluding Geniki) in its CYPRUS of strategic acquisitions and mergers aimed at systems offering a unique banking experience to establishing a strong presence in the domestic all its customers. market. Thus, in 1998, the Bank absorbed the activities of Chase Manhattan in Greece, took WHAT WE DO EGYPT a controlling interest in Macedonia-Thrace Piraeus Bank today leads a group of companies Bank and acquired the specialized bank, Credit covering all financial activities in the Greek market Lyonnais Hellas. At the beginning of 1999, the (as a universal bank). Piraeus Bank possesses Bank acquired Xiosbank and absorbed the particular expertise in the areas of medium-sized activities of National Westminster Bank Plc in and small enterprises, in agricultural banking, with 42 branches of Piraeus Bank Beograd, in of green banking with dedicated branches and Greece. In June 2000, Piraeus Bank absorbed its in consumer and mortgage credit and green Ukraine with 37 branches of Piraeus Bank ICB, in products, addressing both business and individual two commercial banks in Greece (Macedonia- banking, capital markets and investment banking, Cyprus with 14 branches of Piraeus Bank Cyprus, needs. At the same time, the Piraeus Bank Group Thrace Bank and Xiosbank). In 2002, Piraeus Bank as well as leasing and factoring. These services are in Egypt with 41 branches of Piraeus Bank Egypt, Cultural Foundation is active in cultural activities, acquired the Hellenic Industrial Development Bank offered through the Group’s nation-wide network of in London and Frankfurt with a branch of Piraeus which form part of Piraeus Bank Group’s corporate (ETBAbank), which was absorbed in December 1,037 branches and 1,879 ATMs at the end of 2013, Bank each.