Annual Report 2011 ANNUAL REPORT 2011 DREAMS THAT CHANGE LIVES 1 Annual Report 2011 Annual Report 2011 Dreams that change Annual Report 2011 lives Address of the Chairman of Supervisory Board and the Chairman of Management Board ................................................................. 5 General information ........................................................................................................................................................................ 7 At the heart of every one big, small, blue dreams live or, at first glance, castles in the air. Are all of us dream, everybody familiar Shareholders ................................................................................................................................................................................. 9 with these feeling, but a few realize how powerful the dreams Management bodies ..................................................................................................................................................................... 10 are. That is why this year we decided to dedicate an annual report to the dreams that changed our lives. Licenses, list of operations ............................................................................................................................................................ 14 Organizations membership ........................................................................................................................................................... 16 At all times and now there are dreamers, people who were more daring than others and freer in their thoughts. These qualities Main stages of development ......................................................................................................................................................... 18 helped them to move progress and change the course of his- Key events in 2011 ....................................................................................................................................................................... 24 tory. The only thing they needed is to be believed and support- ed. Due to that help new inventions and discoveries that were Key financial indicators ............................................................................................................................... .................................. 26 ahead of their time for years, have made inestimable contribu- Credit policy ................................................................................................................................................................................. 28 tion to the development of cultural and scientific world. Operations with securities ............................................................................................................................................................. 32 We believe that the example of these famous people proves that Resource position ........................................................................................................................................................................ 36 everything we aspire to may come true, because they were able to realize their dreams thanks to the support. Card products .............................................................................................................................................................................. 40 Integral Clearing Center (ICC) ........................................................................................................................................................ 44 Dare to have the bold dreams and “MEGABANK” will help your cherished wishes come true. Treasury operations ...................................................................................................................................................................... 47 Regional network ......................................................................................................................................................................... 49 International cooperation .............................................................................................................................................................. 52 Risk management ....................................................................................................................................................................... 56 Corporate governance ................................................................................................................................................................. 60 Personnel .................................................................................................................................................................................... 61 Strategic goals for 2012 ................................................................................................................................................................ 62 Events after the reporting date ...................................................................................................................................................... 63 Auditor’s report according to international standarts ...................................................................................................................... 64 Financial statements according to international standards ............................................................................................................. 67 Details of the Bank and its branches .............................................................................................................................................. 73 2 2 3 Annual Report 2011 Annual Report 2011 Address of the Chairman of Supervisory Board and the Chairman of Management Board Address of the LADIES AND GENTLEMEN! We have the honour to offer you the annual report and financial Chairman of Supervisory performance of PJSC “MEGABANK.” Board and the Chairman For Ukraine 2011 year was marked by extension of post-crisis economic recovery and stabilization of political situation in the of Management Board country. Economic development positively influenced activity of PJSC “MEGABANK”. We can state with pleasure that during year passed the bank successfully performed assigned tasks. Management and staff of our financial institution succeeded to lay the foundation both for current execution of business plans and for sustainable development in the future, for an ambitious strategy of joining the leaders of banking services in Ukraine. During the reporting year the bank worked on attraction of high- quality client base, on diversification of funding sources, quickly implemented new products and technologies according to mar- ket requirements and needs of clients, engaged in optimizing its organizational structure and improved business processes. Regarding our credit activity we followed the principles of bal- ance and conservatism. Positive dynamics in almost all directions is reflected in financial indicators of performance of PJSC “MEGABANK”. Most of them are significantly better than similar indicators within the banking system as a whole. Thus, the bank’s net assets at the beginning of 2012 amounted to UAH 4,540 million, loan and investment portfolio – UAH 3,568 million. The growth of these indicators for the reporting year reached 29% and 30% respectively. The financial results of PJSC “MEGABANK” in 2011 was a profit of UAH 3,493 thousand that is more than by 70% better than the result of the last year. Bank continued to develop relations also with other international financial institutions. It should be noted appearance in 2011 of a new partner of “MEGABANK” – an international company “WorldBusiness Capital, Inc”. There has been also expanded cooperation with European Bank for Reconstruction and Devel- opment (EBRD) within the project aimed on energy efficiency of enterprises in Ukraine. Implementation of various projects with other and already traditional for “MEGABANK” partners has continued. Attracted from international financial organizations during the reporting period funds totalling 38.5 million U.S. dol- lars were used to finance the real sector of national economy. Talking about future plans in this direction, we want to assure that its international business the Bank will seek to attract into 4 5 Annual Report 2011 Address of the Chairman of Supervisory Board and the Annual Report 2011 General information Chairman of Management Board the economy of the country foreign credit resources, thus con- “MEGABANK” is a universal financial institute with the European tributing creation of a positive investment climate in Ukraine. General vector of development, oriented to a long lasting and mutually beneficial partnership. The bank’s network covers all the terri- The challenge of the bank for the domestic market is to keep information tory of Ukraine ensuring the comfort and accessibility of service. and improve position of PJSC “MEGABANK”, to provide a full range of quality services to businesses and people on competi- “MEGABANK” offers dynamic hi-tech solutions, based on tradi- tive conditions. We believe that this is quite possible given the tions of reliability to its private and corporate clients. High-qual- respect to the bank in business circles, public confidence and ity, clear, indeed unique services of “MEGABANK” allow con- support of shareholders, capital adequacy level, professional