Annual Report 2011

JUBMES banka a.d. Beograd  ANNUAL REPORT 2011
JUBMES banka a.d. Beograd
Bulevar Zorana Đinđića 121
11070 Beograd
Phone: (++381 11) 220 55 00
Fax: (++381 11) 311 02 17
SWIFT: JMBNRSBG
Е-mail: јubmes@јubmes.rs
Website: www.jubmes.rs
JUBMES
b a n k a a.d.
Beograd
A N N UA L
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JUBMES
BANKA A. D.
BEOGRAD
Herbarium
Pancicianum
A N N UA L
REPORT
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ЈJUBMES banka a. d.
Bulevar Zorana Đinđića 121
11070 BEOGRAD
Phone: (+381 11) 220 55 00
Fax: (+381 11) 311 02 17
SWIFT: JMBNRSBG
Е-mail: јubmes@јubmes. rs
Website: www. jubmes. rs
Publisher:
JUBMES banka a. d. Beograd
Artphoto
Art / Graphic solution:
Кuća štampe
Graphic Design:
Danko Polić
Photo:
Dušan Dimitrijević
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Prepress and printing:
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Printed in 250 copies
Beograd, June 2012
T
he University of Belgrade Herbarium, located in the Institute of Botany and “Jevremovac”
Botanical Garden of the Faculty of Biology, is one of the most significant and richest
herbarium collections in the South East Europe Region and wherefore registered
in Index Herbariorum, a Global Directory of Public Herbaria and Associated Staff,
under the code BEOU.
The Herbarium was established in 1860 when a famous Serbian botanist
Josif Pančić donated his collection to the “Great School”, currently University
of Belgrade. Apart from Pančić himself, who has been considered as
the establisher, generations of Serbian botanists contributed to the
treasures of the Herbarium.
Today, 152 years after its establishment, the Herbarium contains
over 180 000 specimens of vascular plants, mosses and algae. All
specimens are organized into the six collections as follows:
Herbarium Pancicianum;
Herbarium Generale (with the collection of Institute
for Ecology and Biogeography of the Serbian Academy of
Sciences and Arts – SASA);
Collection of the Department for Plant Ecology and
Geography;
Collection of the Department for Plant Morphology
and Systematics;
Collections of bryophytes;
Wet collection of the Department for Algology,
Mycology and Lichenology
One of the most important collections, in historical
sense, is the collection of Josif Pančić (Herbarium
Pancicianum). It includes herbarium exsiccates of the
plants from Serbia, Montenegro and Bulgaria, being a base
for preparation of first regional floras of these countries.
Beside this collection, the Herbaria contains also highly
valued collections of Sava Petrović and Sava Hilandarac
from the 19th century, as well as the collections of Nedeljko
Košanin and Teodor Soška, made at the beginning of the
20th century.
The Herbarium of the University in Belgrade is a scientific
institution of the highest rank and represents a unique
historical and cultural wealth of the Republic of Serbia. It
holds the precious and unavoidable “material for studying and
preservation” of the Balkan Peninsula flora and vegetation, as well
as an evidence of efforts taken by individuals and institutions, aimed
at Serbian botanical science development.
Polemonium coeruleum
Contents
Word from the President of the Executive Board.............5
About Us
...................................................................................................................1
Operating Environment / Operating Policy ..............................5
Operating Environment..........................................................................16
JUBMES banka Operating Policy for 2012 ................................. 20
Operations in 2011................................................................................................ 23
Key Figures......................................................................................................24
Independent Auditor’s Report........................................................... 25
Balance Sheet .............................................................................................. 28
Income Statement ........................................................................................37
Placements and Guarantees / Deposit Operations .........41
Lendings...........................................................................................................42
Security Investments ...............................................................................45
Guarantees......................................................................................................47
Deposit Operations .................................................................................... 48
Risk Management .....................................................................................................51
Banking Operations and Services........................................................59
Local Payments Operations .................................................................. 60
Retail Banking Operations ......................................................................61
International Operations ......................................................................... 62
Corporate Management ..................................................................................67
Managing Board and Executive Board ........................................ 68
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Compliance Function.............................................................................. 72
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Josif Panč
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Information & Communication Technologies..........................70
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Organization Chart.................................................................................... 69 .
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WORD FROM
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Dear Shareholders,
We would hereby like to
take the opportunity to use this
introductory remarks in order
to present you the fundamental
data on macroeconomic business
conditions of the banking
sector as well as on business
results of JUBMES banka a.
d. Beograd, achieved in the
previous 2011, which shall be
elaborated in details in further
chapters of the Annual Report.
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***
Slowing down trend related to the economic growth
in Eurozone in 2011 negatively affected Serbian economy.
Although the year’s start was marked by acceleration in
production recovery, economic trends in Eurozone caused
the stagnation in Serbian economic activity in the middle of
2011. Nevertheless, GDP achieved positive result by reaching 1.
6% at the end of 2011, but suffering a deterioration trend. The
growth was produced mostly by the volume of investments
and exports, while the hardest negative impact was generated
by the final consumption decrease, which affected trade
industry most severely.
Unemployment is permanently the most serious structural
problem of Serbian economy, with labour market trends
significantly deteriorated, after stabilisation of all economic
factors recorded in 2010.
Turbulence of the world financial market caused the
Serbian risk premium to grow, but not as much as in other
neighbouring countries. For this reason in the course of 2011
Serbian dinar proved as more stable in comparison to other
East European currencies. Dinar/Euro cross rate recorded at
the end of 2011 appreciated for 0. 8% to 104. 64 dinars for
euro compared to the end of 2010. Throughout most of the
year foreign currency rate suffered high short-term oscillations,
but achieved stability at the end of the year, with minimal
interventions of the National Bank of Serbia (NBS). Upon
receiving the candidate status in the EU accession process,
Serbia became more attractive for foreign investments, which
will soon affect the foreign exchange market.
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Inter-annual inflation at the end of 2011 reached 7. 0%, thus
exceeding the upper deviation limit from the NBS targeted
inflation rate for the previous year by 1 percentage point.
Inflation was stable in the beginning of 2011, but afterwards
it started to slow down significantly. In response, NBS, paying
attention to the corresponding economic stagnation, gradually
decreased its monetary policy restrictiveness. Till the end of
the year referent interest rate was reduced to 9. 75% i. e. for
the total of two percentage point decrease in comparison
with the end of 2010.
Current deficit in 2011 amounted to almost 3 billion
euro or approx. 10% of the GDP, being a relative increase
compared to the previous year (7. 6% GDP). There was no
serious problem to finance the current deficit in 2011, owing
to relatively high inflow of foreign capital investments,
particularly investments of FIAT and Delhaize, as well as to high
governmental borrowings. In September the Government
issued for the first time bonds on foreign market - euro-bonds,
in the total nominal amount of one billion US dollars with 10
years maturity and the interest rate of 7. 25% p. a.
Government’s foreign debt at the end of 2011 amounted
to 24. 1 billion euro, while public debt reached 14. 5 billion
euro, exceeding the legal limit of 45% of GDP, showing the
need for imposing fiscal consolidation measures and programs
for public debt reduction. In spite of this high indebtedness,
Serbian economy is still well preserved from possible balance
of payments risks, having in mind that NBS’ foreign exchange
reserves amounted to 12 billion euro at the end of 2011, as
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well as due to the one billion euro stand-by arrangement
with IMF, approved in September.
Negative trends on world financial markets, generated
by the public debt crisis in certain developed countries and
currency zones, affected the significant drop of local stock
exchange indices in 2011 compared to the beginning of the
business year, for an average of 24%.
Banking system in Serbia in 2011 was liquid and highly
capitalized. Total banking sector balance amount amounted to
25. 0 billion euro. According to NBS data, banks in Serbia were
re-capitalized for approx. 300 million euro. Serbian banking
sector capital adequacy rate at the end of 2011 reached 19.
1%, being among highest in Europe. Let it be remarked that
Basel convergence of capital measurements and capital
standards fix the capital adequacy ratio of 8% at least, while
NBS regulations request minimum of 12%. Banking sector
liquidity ratio at the end of 2011 reached 2. 17%.
Stake of non-performing loans (NPL) continuously grew
in the course of 2011. NPL extended to legal entities grew
faster than to entrepreneurs, showing that the liquidity
problem inherited from the previous years has been only
postponed, but not resolved. In 2011 the repayment of
loans approved by Serbian banks was generally aggravated,
because borrowers had to repay the cross border loans too,
being the reflection of the extended trend of cross border
indebtedness decrease. The last available data on the local
banking sector NPL showed their continual increase, Thus,
NPL stake in total loans reached 19. 2% at the end of 2011,
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while the coverage of NPL by reserves for potential losses
was relatively high, exceeding 125% throughout the year.
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Under the circumstances of deteriorated liquidity, both
in real and financial sectors, the Bank’s business policy for
2011 defined the following priority targets:
-Preserving the safety and real value of Bank’s
placements;
-Stable and profitable operations, with full protection
of Bank’s capital and the interests of its clients and
shareholders;
-Preservation and strengthening of the Bank’s deposits
base;
-Strengthening of the financial potentials i. e. the
capital base;
-Maintaining and permanent improvement of the
Bank’s products and services quality, both in credit/
deposit operations and in payment operations;
-Credit portfolio growth and further diversification,
concurrently with the expansion of the base and
participation of corporative clients in total placements
structure.
Upon inspection of the results achieved in 2011, we may
draw a conclusion that JUBMES banka a. d. Beograd, in spite
of aggravated business conditions, fully achieved its Business
Policy targets.
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In order to illustrate Bank’s success in business year 2011,
I shall state the following facts:
-An above-average rate of operational productivity
was achieved: profit before taxation amounted to
2. 54 million euro, with the return on equity (ROE)
of 4. 75%;
-Maintained continuity of profitable operations from
previous years. Accumulated income in the period
2006-2011 amounts to 30. 6 million euro, taking 60.
4% stake of the total Bank’s capital (50. 76 million
euro) as of Dec. 31, 2011;
-Results achieved are coming out of Bank’s principal
activity i. e. an above-average growth of interest and
fees & commissions net income, which amounted
to 981. 58 million dinars or 9. 38 million euro. In
comparison with 2010, income growth in real terms
was recorded in amount of 2. 9 million euro or 44.
7% (in 2010 – 6. 48 million euro);
-The Bank maintained high level of operational
efficiency achieved in the previous years. The ratio of
the net interest and fees & commissions income on
one side and operational losses (including earnings
expenses and compensations) on the other, reached
1. 39 (1. 04 in 2010);
-Business activities volume was increased, measured
by the balance amount, and the Bank’s assets real
value preserved. Balance amount was increased in
2011 for 695. 5 million dinars, being 7. 8% growth
in real terms;
-At the end of year relatively high stake of liquid
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assets (primary and secondary liquidity sources)
in total balance amount was evidenced, being a
comparative advantage in deteriorated financial
stability environment. In 2011 the Bank retained
a high level of both dinar and foreign currency
liquidity, so daily disposable liquid funds enabled
smooth execution of all orders, issued by clients or
by the Bank;
-Bank’s capital real value was also increased for
additional 353. 3 million dinars i. e. for 7. 14% in real
terms, mostly due to realized income and balancing
of the book value of the assets with its market value;
-Bank’s financial safety and financing stability were
preserved. As of Dec. 31, 2011 total capital’s share
reached 55. 3% of total balance (55. 7% at the end of
2010), confirming thereby high stability of financing
sources and proving operational stability for the
forthcoming period;
-At the end of year an above average capital adequacy
rate of 45. 22% was recorded, being an indicator of
extremely high Bank’s placements safety. Throughout
the year this rate was significantly higher than the
average rate of the banking sector, as a result of the
Bank’s prudent business policy and orientation at
relatively safe placements;
-Of-balance assets were also increased, due to the
growth of the guarantee operations. As of Dec. 31,
2011 total volume of the Bank’s guarantee operations
amounted to 2. ,1 billion dinars, being 9% increase
related to the end of 2010;
-All operation indicators were harmonized and shifted
within limits fixed by the Law on Banks.
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With aim to maintain stability of sources and safety of
placements, as well as continuity of profitable and efficient
operations, the Bank shall take all necessary activities in
perspective in order to accomplish all mentioned permanent
operational goals.
With this purpose Bank’s Assembly on the meeting
held on March 28, 2012 accepted the proposal of the Bank’s
Managing Board and reached the decision of establishment
of a factoring company, considering factoring operations as a
profitable instrument for investments in Serbia and factoring
market as potentially growing. JUBMES banka shall be a cofounder of this factoring company, together with other cofounders – highly respected Bank’s corporate clients, with
shares in the factoring company’s capital that would give a
boost to its operations and generally appreciated position.
With aim to improve the business organisation efficiency
the Bank in 2011 implemented the following standards: OMS,
ISMS and EMS. At the occasion of the said Annual Assembly
Meeting, the Bank was awarded the Operational Quality
Standard, Information Safety Standard and Environment
Protection Standard issued by the international certification
authority.
Milan Stefanović
President of the Executive Board
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ABOUT US
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he Yugoslav Bank for International Economic Cooperation
African Development Bank, Inter-American Development
– Yugoslav Bank was established in the June 1979 with
Bank, EBRD, International Financial Corporation etc.
aim of improving and upgrading of the national export
In 1989, the Yugoslav Bank became the first bank (among
support system. As a specialized financial institution, it
few corporations) in the country to be established as a
was positioned to act complementary with commercial
shareholding company, in the eve of the transformation
banks engaged in providing of financial support to export
processes in financial sector of the Central, Eastern and
projects of local companies. Yugoslav Bank succeeded the
South-East Europe. In the last few years the Bank ranks
rights and obligations of the Export Credit and Insurance
among the outstanding public shareholding companies
Fund in the capacity of its legal successor.
having shares belonging to the most liquid securities traded
The Bank gained more than two decades lasting
continuously in the Belgrade Stock Exchange, which are
experience in performing activities promoting national
from time to time a component of Dow Jones STOXX
exports. To especially mention the background in extending
index and the Belgrade Stock Exchange Belex 15 Index.
buyers credits for execution of various capital projects
Acting under the Law on Banks since 1997 and, being
abroad, as well as in co-financing operations with the
licensed to perform virtually all banking operations within
IBRD, African Development Bank and Saudi Fund. The
corporate and retail banking, both in local and international
Bank is also experienced in rendering consulting services
to local companies for their participation
in international competitive biddings
for projects financed
by the IBRD,
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markets, the Bank has developed into a universal commercial
to harmonizing various banking activities and operations,
bank, offering a full range of products and services,
evaluation of compliance risk as well as implementation
oriented with priority to rendering financial support to
of international standards, local regulations and Bank’s
corporate clients and export. Since 2006 Yugoslav Bank for
internal rules and procedures for prevention of money
International Economic Cooperation Belgrade has been
laundering and terrorism financing.
operating under the name of JUBMES banka a. d. Beograd.
Ever since its establishment the Bank has improved its
The Bank’s business policy is based primarily on
employees educational structure and paid a lot attention to
observing the basic banking operation principles,
their professional training. Employees’ qualifications structure
including maintaining liquidity, security and profitability of
has been permanently advanced. The Bank gives chance
placements aimed to fully protect the shareholders interest.
to young people, ready to apply modern knowledge and
Continually improving its system and procedures for risk
skills and offer innovative banking solutions. At the end
management, the Bank has been fully implementing Basel
of 2011, out of 120 employees, more than 60% are highly
II standards from the beginning of the 2012. The Bank
educated experts.
has structurally introduced and developed
Considering our potentials and strategic orientation,
the compliance function aimed
we are positioned as a competitive financial institution
achieving respectable business results and under many
operation efficiency indicators ranking among
the leading banks in the Republic
of Serbia.
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Dryas octopetala
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Dr. N.Koša
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OPERATING
ENVIRONMENT
АND OPERATING
POLICY
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OPERATING ENVIRONMENT
General Remarks
Last year the economic trends in Serbia were affected
by permanent structural problems of the economy itself and
public finance, as well as by the economic activity slowing
down in the Eurozone. After the production was recovered
in the beginning of the year in almost all economic activities,
the developments in the Eurozone, starting from the second
quarter, pushed Serbian economy into stagnation, while
some of the industries even suffered a production drop in
real terms. These trends are illustrated by the National Bureau
of Statistic’s data on economic growth rate (in comparison
with the same period of 2010), which reached 3. 0% in the
first quarter, 2. 5% in the second, 0. 7% in the third, but only
0. 4% in the fourth quarter of 2011.
Nevertheless, in 2011 GDP growth of 1. 6% in real terms
was accomplished in comparison with the year before
(macroeconomic aggregates midterm projection fixed the
growth rate of 3%), with the significant downturn tendency.
The growth rate for 2012 was initially fixed at 4. 0% by the
midterm projection, to be later reduced – firstly to 2,0% and
finally to less than 0. 5%. The rate population estimation was
significantly affected by the expected Eurozone’s moderate
annual recession (-0. 5% by IMF projections).
Data on employment collected by the National Bureau
of Statistics through the survey held in November 2011, show
severe consequences on general conditions in the country,
generated by the crisis. According to the poll, unemployment
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in Serbia reached 23. 7% (19. 2% in 2010 and 16. 1% in 2009).
On the other hand, employment rate (stake of employed
persons in total number of citizens older than 15) of 35. 3%
was recorded – 1. 8% decrease compared to October 2010,
while the employed population declined for 2. 8%. Finally,
in 2011 earnings achieved nominal growth of 11. 2% but
only 0. 2% in real terms, compared to 2010.
In 2011 total Serbian foreign trade amounted to 22,889.
1 million euro, a 14. 4% increase compared to 2010. Export
of goods advanced for 14. 1% and imports for 14. 5% in
comparison to the previous year. Deficit amounted to 6,010.
3 million euro, an increase of 15. 0% in comparison to the
same period of the previous year. Export “covered” 58. 5%
of import, remaining on the 2010 level.
Serbian public debt as of December 31, 2011 amounted
to 14. 5 billion euro, for about 2. 4 billion euro (19. 8%) more
than in December 2010. This increase is generated by new
foreign borrowings and sale of the securities issued by the
Government. The public debt took 45. 8 of GDP (thus overdrafting the legal limit of 45%), while budget deficit reached
4. 7% of GDP. It is estimated that in 2012 budget deficit
could amount to 4. 9%-5. 25% of GDP, thereby significantly
exceeding the limit agrred with the IMF (4. 25%). For this
reason the Government is expected to take measures for
fiscal consolidation and program for public debt reduction,
mainly through 2012 budget revision.
Serbian foreign debt as of December 31, 2011 amounted
to 24. 1 billion euro, reaching 74. ,5% of GDP, but still below
the World Bank’s high indebtedness criterion (80% of
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GDP). Nevertheless, having in mind the growth of new
borrowings volume and permamently high deficit of
the balance of payments current account, monitoring of
the foreign indebtedness level should be a high priority
macroeconomic policy issue.
Negative trends on the global financial markets, generated
by the public debt crisis in some developed countries and
currency zones, caused a significant drop of Belgrade Stock
Exchange indices at the end of 2011, compared to the
year’s beginning: Belex 15 for 23. 5% and Belex line for 23.
8%. All other stock exchanges in the Region suffered from
the index drop too. In 2011 total turnover volume of the
Belgrade Stock Exchange (shares and bonds) amounted to
280 million euro, being 26% rise compared to 2010.
Inflation, Monetary Policy
and Dinar Parity
Consumer prices in December 2011, compared to
December of the previous year, grew for 7. 0% (for 1%
surpassing the upper limit of the NBS targeted inflation
rate for the year), while the average annual consumer prices
growth amounted to 11. 0%. Inter-annual prices growth was
gradually accelerated in the period from January (11. 2%) to
April (14. 7%), but slowed down constantly till the end of year.
The main instrument of NBS monetary policy for achieving
targeted inflation is the referent interest rate for two weeks
repo transactions. As a response to a significant inflationary
trend, NBS imposed more severe monetary policy measures
by raising the referent interest rate from 11. 5% to 12. 5% in
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the period January - April 2011. From June NBS lead milder
policy, estimating that new agricultural season and fall of
food prices should support the anti-inflationary tendencies.
The fall of inter-annual inflation rates caused lower inflation
expectations and for that reason NBS gradually reduced
the referent interest rate down to 9. 5% at the end of year.
As an additional monetary policy instrument, NBS
implements the floating managed exchange rate regime,
which includes interventions on the foreign exchange market,
in cases of significant daily oscillations of the rate, financial
and price instability and protection of the adequate level
of foreign currency reserves. With the purpose of giving
support to the inter-banking swap foreign exchange market
and enabling easier banks liquidity management, since
March 1 NBS has organized foreign exchange swap auctions
in both directions, under conditions in force from 2010. In
the course of 2011 dinar appreciated in nominal terms for 0.
8% with minimal NBS interventions in the foreign exchange
market i. e. in the reporting period NBS purchased 45 million
euro from banks and sold 90 million to banks.
In conformity with the attitude of using all available
monetary policy instruments in order to keep inflation in
the mid-term within targeting framework, NBS adopted the
new Decision on Banks’ Required Reserves. This Decision
increased the monetary policy restrictiveness and introduced
differentiated required reserves rates upon dinar and foreign
currency base, as well as upon the obligation of allocatiing
the portion of the calculated foreign currency required
reserve in dinar equivalent.
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Banking Sector in Serbia
Regulatory Developments
As of 31. 12. 2011 total balance of the banking sector
amounted to 2. 650 billion dinars (approx. EUR 25. 3 billion),
representing 4. 6% growth compared to the end of 2010.
The following legal regulations adopted in 2011
shall have special impact on Serbian banking sector:
- Set of decisions reached by NBS, creating a
comprehensive framework for introduction and implementation
of Basel II standards in Serbian banking system; in force
since December 31, 2011;
- The Law on the Protection of Financial Services
Consumers, adopted by the National Assembly of the
Republic of Serbia, in force since December 5, 2011.
Banking sector owes its profitability recorded in 2011
largely to traditional banking operations i. e. to net income
growth in comparison with the previous year - by increase
of the interest income for 10. 3 billion dinars (9. 5%) and
fee and commission income for 2. 3 billion dinars (7. 1%). In
2011 Serbian banking sector achieved profit before taxation
in amount of only 1,3 billion dinars, caused primarily by
the loss of 29,4 billion dinars suffered by only one bank
(Poljoprivredna banka Agrobanka a. d. Beograd), as well as
by the negative impact of exchange rate movements on
assets and liabilities revaluation and less by the growth of
Bank’s operating expenses.
In the previous year 12 banks recorded loss in total
amount of 39. 4 billion. The remaining 21 banks achieved net
profit before taxation in total amount of 40. 7 billion dinars.
Economic and Monetary
Policy in 2012 and 2013
Economic Policy of Republic of Serbia in the following
two years shall be focused at macroeconomic stability,
sustainable economic growth and development of competitive
economy, the employment growth and population living
standards as well as at harmonized regional development
of the country.
Macroeconomic stability will be based on reduction of
inflation, fiscal deficit and balance of payments current account
deficit. For the forthcoming years economic activity recovery
and the economic growth is expected, owing to investments
and exports growth as well as to gradual improvement of
the labour market conditions. More restrictive fiscal policy
will affect weakening of inflation pressures and balance of
payments adjustment. On the other side, the increasing level
of monetary policy restrictiveness will generate stabilization
of inflation expectations and inflation lowering.
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Macroeconomic policies shall affect the changes in the
economic growth model, which will be based mostly on
the supply and export support, investments increase and
improvement of competitiveness of economy. Change of
the current growth model, based on consumption and
import, requests implementation of policies and measures
which are focused at creation of conditions for investments
and export as the growth stimuli. Application of a new
growth model shall cause structural reforms acceleration,
in conformity with Stabilization and Association Agreement
between Serbia and EU. With this respect measures will
be undertaken for creating more favourable environment
for entrepreneurs, for acceleration of reform processes in
real, financial and (in particular) public sectors, with aim of
achieving faster productivity growth and a more export
oriented economy.
NBS defined its monetary strategy by Memorandum
on Inflation Targeting as Monetary Strategy for period 20102012. Inflation targets are defined as annual changing of the
consumer prices index, within the fixed limits of tolerance.
Inflation gradual decrease from 4. 5% ± 1. 5%. to 4. 0% ± 1.
5% is the target set for 2012.
NBS shall continue to implement the floating exchange
rate regime, holding the right to intervene to prevent too
extreme daily RSD rate shifting, to preserve the financial and
price stability as well as to protect certain level of foreign
currency reserves.
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Projection of Principal
Macroeconomic Indicators for 2012
Due to Eurozone crisis and further economic activities
slowing down, in November 2011 the Ministry of Finance in
cooperation with the IMF mission during the first arrangement
revision, corrected GDP growth projection for 2012 from 3.
0% to 1. 5%. Conservative approach to economic growth
estimations for 2012 was generated by the debt crisis in the
Eurozone, which has spread to principal Serbian foreign trade
partners. The European Union economic growth slowing
down will have negative impact on Serbian export, having
in mind that that 58% of the country’s export goes to EU
countries market.
Although restrained, this economic growth projection
had to be revised due to sharp negative trends unfolding at
the end of 2011 (for this reason the 2011 growth estimation
was reduced from 1. 9% to 1. 6%), and especially in the
beginning of 2012. Moderate recession projected in the
Eurozone countries (-0. 5%) directly affected economic
growth expectations for Serbia to be reduced to 0. 5%.
Other macroeconomic indices projected for 2012
(average annual inflation: 4. 1%; annual export growth: 10.
2%; annual import growth: 5. 5%; current account deficit:
8. 4% of GDP; foreign trade balance on goods and services:
-14. 9%) have not been corrected in comparison with the
said Projection of the Ministry for Finance.
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JUBMES BANKA OPERATING
POLICY FOR 2012
Bank’s Business policy for 2012 was projected on the basis of:
-
Bank’s business results achieved in 2011;
-Bank’s Development Strategy for the period 20102012;
-Republic of Serbia economic and monetary policy
targets defined for 2012, and
-Current and expected macroeconomic and market
conditions in financial and real sectors for 2012.
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of active accounts of both corporative and individual
clients;
-Bank’s financial potential strengthening i. e. its capital
base, by allocation of profit in capital as well as by the
Bank’s recapitalization;
-Maintaining and permanent improving the quality of
products and services, both credit/deposit operations
and payment operations and
-Further growth and diversification of credit portfolio,
including the base growth and enlargement of corporative
clients share in total placements.
In line with the aforesaid, the Bank’s 2012 Operation Policy
defines the following targets:
Principal Targets of the Bank’s
Operating Policy for 2012
Taking into account macroeconomic business conditions
and the Bank’s current market position and financial potential,
the principal strategic targets defined in Bank’s Development
Strategy for 2010-2012, are the following:
-Real value preservation and safety of Bank’s placements;
-Stable and profitable operations, including preservation
of Bank’s capital as well as interests of clients and
shareholders,
-Deposit base strengthening and increasing the level of
average deposit per client (deposits and savings raise with
the aim of establishing relatively equal level of deposits
and credits in the retail sector which would reinforce the
primary funds base), as well as the increase of number
20
-Maintaining the real growth of the business activity
volume, in accordance with limits set by the prevailing
market trends, with simultaneous full observation of the
liquidity, safety and profitability principles in operation;
-Further restrictive attitude towards the expenses policy
(expenditures management), with respect to the negative
trends and relatively aggravated operational conditions
on financial market;
-Maintaining continuity in operational profitability reached
in previous years, while achieving net operational income
real rate;
-Maintaining stability of funds’ sources and further
improvement of efficiency in utilization of Bank’s inner
potentials (deposits policy shall be focused at maintaining
sources of funds stability, under the conditions of further
real sector’s liquidity aggravation, and contraction in
population’s consumption ability);
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-Bank’s financial potential growth through providing
funds from international financial institutions and by
enabling the access to foreign funds (for example APEX
loans, Italian credit lines etc. );
-Growth of the stake of foreign currency long-term deposits
in Bank’s total deposit potential structure, being a real
base for further credit activity volume growth effected
through lendings extended to companies, individuals
and other clients;
-Improvement and further strengthening of the Bank’s
credit portfolio by attracting new corporative clients
and SME’s, through improvement of existing and
development of new banking products and services and
maintaining high responsibility criterion in procedures
of loan approval and accepting engagement in other
modes of financing, together with strict observing of the
procedures and criteria of banking risks management;
-Guaranty commitments volume increase and development;
-E-banking payment operations volume growth and
attracting new clients in local and international payment
operations and enlarging the number of clients - credit
cards users;
-Improvement of the operations quality, employees’
working conditions and professionalism, aimed to higher
operations efficiency and productivity, and
-Compliance of all Bank’s operational parameters with
the fixed criteria and limits, as well as compliance of all
activities with the adopted Bank’s risk policies.
21
Soldanella hungarica
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OPERATIONS
IN 2011
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KEY FIGURES
The Bank’s operations executed in 2011 are characterized by:
-
Over average productivity rate and operations profitability
rate. In 2011, operational income before taxation was
recorded in amount of RSD 251. 7 million or EUR 2. 40
million (EUR 1. 95 million in 2010), with the return on
assets rate of 2. 63%, return on equity rate of 4,75% and
net income per employee of EUR 20. 000,00;
Continuity of profitable operation in previous years. Total
-
cumulative profit for the previous five-year period (20072011) of EUR 30. 6 million equals with 60. 4% of the Bank’s
capital, which amounted to RSD 5. 3 billion, i. e. EUR 50.
65 million as of Dec. 31, 2011;
- Over average growth of interest net income and fee and
commission net income. Bank achieved such profitability
largely owing to the fundamental banking activities.
Interest and fee and commission income amounted to
RSD 981. 58 million dinars or approximately EUR 9. 38
million, being a growth of EUR 2. 88 million or 44,3%
in real terms compared to 2010 (EUR 6. 50 million in
2010). Relative ratio between interest and fees income
and interest and fees receivables amounted to 86. 4%
in 2011 (84. ,6% in 2010);
- Maintaining the high level of operating efficiency. The Bank
maintained high level of the operating efficiency in 2011,
achieving 1. 39 as the relative ratio between the cash
inflow from interest receipts and fee and commission
24
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receipts on one side and payments for gross salaries,
compensations and other operation expenses, on the
other hand (1,04 in 2010);
- B usiness activities growth, with preserving the real assets
value. In 2011, in spite of seriously aggravated business
conditions, Bank’s balance amount reached growth of
7,83% or RSD 695. 5 million, compared to 2010.
- High rate of liquidity, both in RSD and in foreign currency.
High participation of liquid assets was accomplished
(primary and secondary liquidity sources) in total Bank’s
balance assets as of Dec. 31, 2011. This is a comparative
advantage in situation of disturbed financial stability;
-
Capital real value growth. Bank’s capital was increased
in 2011 for RSD 353,3 million or for 7,14% in real terms,
mostly due to realized income and balancing of the
book value of the assets with its market value;
- F inancial safety and financial sources stability. As of Dec. 31,
2011 total capital’s share reached 55. 3% of total balance,
confirming thereby high stability of financing sources
and proving operational stability for the forthcoming
period (55. 7% as of Dec, 31, 2010);
-
High capital adequacy ratio (45. 22% at the end of 2011).
Throughout the year 2011 the Bank earned over average
capital adequacy rate, produced primarily by Bank’s
business policy and relatively safe placements of funds;
-
Preservation and moderate increase of the deposit potential
under decreased liquidity conditions in real sector. Deposit
with the Bank amounted to RSD 3,08 billion as of
Dec. 31, 2011 or around EUR 29. 4 million, being 4. 3%
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increase compared to the end of 2010. Some
77,1% of total deposit amount goes to foreign
currency deposits, which are increased in 2011
for EUR 2. 3 million or for 11. 2% in real terms,
compared to 2010. Saving deposits with the
Bank amounted to EUR 11. 36 million (38. 6%
of the total deposits value), being an increase
of 5. 78% in real terms compared to the end of
2010 (EUR 10. 74 million), confirming its high
business rating held with the customers;
- Increase of the off-balance sheet activities, including
guarantee operations volume growth. Total offbalance sheet activity amounted to RSD 15.
59 billion as off Dec. 31, 2011 (RSD 7. 57 billion
as of Dec 31, 2010). Total volume of guarantee
operations achieved RSD 2. 1 billion as off 31.
12. 2011, being a RSD 175. 0 billion increase
compared to the previous year (9. 4%).
INDEPENDENT
AUDITOR’S
REPORT
-
Compliance of all operational parameters with
the Law on Banks.
25
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This is an English translation of Independent Auditor’s Report
originally issued in the Serbian language
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS AND THE BOARD OF DIRECTORS
OF JUBMES BANKA a.d. BEOGRAD
IZVEŠTAJ NEZAVISNOG REVIZORA
We have audited the accompanying financial statements of JUBMES banka a.d. Beograd
(hereinafter “the
Bank”), which
comprise the balance sheet as of 31 December 2011, and the
AKCIONARIMA
I UPRAVNOM
ODBORU
income BANKE
statement,
JUBMES
a.d.statement
BEOGRADof changes in equity and statement of cash flows for the year
then ended, and a summary of significant accounting policies and other explanatory
information. The statistical annex represents an integral part of these financial statements.
Izvršili smo reviziju priloženih finansijskih izveštaja JUBMES banke a.d. Beograd (u daljem
Management's
Responsibility
for the bilans
Financial
Statements
tekstu
“Banka”),
koji obuhvataju
stanja
na dan 31. decembra 2011. godine i
odgovarajući
uspeha, izveštaj
o promenama
nafair
kapitalu
i izveštaj
tokovima
gotovine
Management bilans
is responsible
for the preparation
and
presentation
of othese
financial
zastatements
godinu koja
se završava
nathe
tajLaw
dan,onkao
i pregled
računovodstvenih
i
in accordance
with
Accounting
andznačajnih
Auditing (“Official
Gazette ofpolitika
the
Republic of
no. izveštaje.
46/2006 and
111/2009),
Law
on Banks sastavni
(“Officialdeo
Gazette
of the
napomene
uzSerbia”,
finansijske
Statistički
aneks
predstavlja
ovih finansijskih
Republic of Serbia”, no. 107/2005 and 91/2010) and respective decisions of the National Bank
izveštaja.
of Serbia which regulate banks’ financial reporting, and for such internal control as
management determines is necessary to enable the preparation of financial statements that
Odgovornost
rukovodstva za finansijske izveštaje
are free from material misstatement, whether due to fraud or error.
Rukovodstvo Banke je odgovorno za sastavljanje i istinito prikazivanje ovih finansijskih
izveštaja
skladu sa Zakonom o računovodstvu i reviziji (“Službeni glasnik Republike Srbije”,
Auditor'suResponsibility
br. 46/2006 i 111/2009), Zakonom o bankama (“Službeni glasnik Republike Srbije”, br.
Our responsibility is to express an opinion on these financial statements based on our audit. We
107/2005
91/2010)
i relevantnim
propisima
Narodne
banke Srbije
koji regulišu
finansijsko
Those standards
conductedi our
audit in
accordance with
International
Standards
on Auditing.
izveštavanje
kaowith
i za ethical
one interne
kontroleand
koje
rukovodstvo
odredi
kao neophodne
require that banaka,
we comply
requirements
plan
and perform
the audit
to obtain u
pripremi
finansijskih
koji ne sadrže
materijalno
značajne
iskaze,
nastale
reasonable
assuranceizveštaja
about whether
the financial
statements
arepogrešne
free from
material
usled
kriminalne radnje ili greške.
misstatement.
An audit involves
performing procedures to obtain audit evidence about the amounts and
Odgovornost
revizora
disclosures in the financial statements. The procedures selected depend on the auditor’s
Naša
je odgovornost
mišljenje
ovimoffinansijskim
izveštajima na
izvršene
judgment,
including da
theizrazimo
assessment
of theo risks
material misstatement
of osnovu
the financial
revizije.
Reviziju
smo due
izvršili
u skladu
sa Međunarodnim
standardima
revizije. the
Ovi auditor
standardi
statements,
whether
to fraud
or error.
In making those
risk assessments,
nalažu
da internal
se pridržavamo
etičkih zahteva
i da reviziju
planiramo
i izvršimo
na način
considers
control relevant
to the entity’s
preparation
and fair
presentation
of thekoji
financial statements
in order meri,
to design
auditdaprocedures
are ne
appropriate
in the
omogućava
da se, u razumnoj
uverimo
finansijski that
izveštaji
sadrže materijalno
circumstances,
butiskaze.
not for the purpose of expressing an opinion on the effectiveness of the
značajne
pogrešne
entity’s internal control. An audit also includes evaluating the appropriateness of accounting
26
policies used
and the
reasonableness
of accounting
estimates made
by management,
well as i
Revizija
uključuje
sprovođenje
postupaka
radi pribavljanja
revizijskih
dokaza oas iznosima
evaluating
the
overall
presentation
of
the
financial
statements.
obelodanjivanjima u finansijskim izveštajima. Odabrani postupci su zasnovani na revizorskom
prosuđivanju, uključujući procenu rizika postojanja materijalno značajnih pogrešnih iskaza u
We believe that
the audit nastalih
evidenceusled
we have
obtainedradnje
is sufficient
and appropriate
to provide
finansijskim
izveštajima,
kriminalne
ili greške.
Prilikom procene
rizika,
a basis for our audit opinion.
revizor sagledava interne kontrole relevantne za sastavljanje i istinito prikazivanje
finansijskih izveštaja radi osmišljavanja revizijskih postupaka koji su odgovarajući u datim
okolnostima, ali ne u cilju izražavanja mišljenja o delotvornosti internih kontrola pravnog
lica. Revizija takođe uključuje ocenu adekvatnosti primenjenih računovodstvenih politika i
opravdanost računovodstvenih procena izvršenih od strane rukovodstva, kao i ocenu opšte
prezentacije finansijskih izveštaja.
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IZVEŠTAJ NEZAVISNOG REVIZORA
AKCIONARIMA I UPRAVNOM ODBORU
JUBMES BANKE a.d. BEOGRAD (Nastavak)
Mišljenje
IZVEŠTAJ NEZAVISNOG REVIZORA
Po našem mišljenju, finansijski izveštaji prikazuju istinito i objektivno, po svim materijalno
AKCIONARIMA I UPRAVNOM ODBORU
značajnim pitanjima, finansijsku poziciju Banke na dan 31. decembra 2011. godine, kao i
JUBMES BANKE a.d. BEOGRAD
rezultate njenog poslovanja i tokove gotovine za godinu koja se završava na taj dan, u skladu
sa Zakonom o računovodstvu i reviziji, Zakonom o bankama i relevantnim propisima Narodne
banke Srbije koji regulišu finansijsko izveštavanje banaka.
Izvršili smo reviziju priloženih finansijskih izveštaja JUBMES banke a.d. Beograd (u daljem
tekstu “Banka”), koji obuhvataju bilans stanja na dan 31. decembra 2011. godine i
odgovarajući bilans uspeha, izveštaj o promenama na kapitalu i izveštaj o tokovima gotovine
Beograd,
14. koja
februar
2012. godine
za godinu
se završava
na taj dan, kao i pregled značajnih računovodstvenih politika i
napomene uz finansijske izveštaje. Statistički aneks predstavlja sastavni deo ovih finansijskih
izveštaja.
Danijela Krtinić
Ovlašćeni revizor
Rukovodstvo Banke je odgovorno za sastavljanje i istinito prikazivanje ovih finansijskih
izveštaja u skladu sa Zakonom o računovodstvu i reviziji (“Službeni glasnik Republike Srbije”,
br. 46/2006 i 111/2009), Zakonom o bankama (“Službeni glasnik Republike Srbije”, br.
107/2005 i 91/2010) i relevantnim propisima Narodne banke Srbije koji regulišu finansijsko
izveštavanje banaka, kao i za one interne kontrole koje rukovodstvo odredi kao neophodne u
pripremi finansijskih izveštaja koji ne sadrže materijalno značajne pogrešne iskaze, nastale
usled kriminalne radnje ili greške.
Odgovornost rukovodstva za finansijske izveštaje
Odgovornost revizora
Naša je odgovornost da izrazimo mišljenje o ovim finansijskim izveštajima na osnovu izvršene
revizije. Reviziju smo izvršili u skladu sa Međunarodnim standardima revizije. Ovi standardi
nalažu da se pridržavamo etičkih zahteva i da reviziju planiramo i izvršimo na način koji
omogućava da se, u razumnoj meri, uverimo da finansijski izveštaji ne sadrže materijalno
značajne pogrešne iskaze.
Revizija uključuje sprovođenje postupaka radi pribavljanja revizijskih dokaza o iznosima i
obelodanjivanjima u finansijskim izveštajima. Odabrani postupci su zasnovani na revizorskom
prosuđivanju, uključujući procenu rizika postojanja materijalno značajnih pogrešnih iskaza u
finansijskim izveštajima, nastalih usled kriminalne radnje ili greške. Prilikom procene rizika,
revizor sagledava interne kontrole relevantne za sastavljanje i istinito prikazivanje
finansijskih izveštaja radi osmišljavanja revizijskih postupaka koji su odgovarajući u datim
okolnostima, ali ne u cilju izražavanja mišljenja o delotvornosti internih kontrola pravnog
lica. Revizija takođe uključuje ocenu adekvatnosti primenjenih računovodstvenih politika i
opravdanost računovodstvenih procena izvršenih od strane rukovodstva, kao i ocenu opšte
prezentacije finansijskih izveštaja.
27
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BALANCE SHEET
JUBMES banka recorded total balance as of Dec. 31, 2011
in amount of 9575 million dinars (EUR 91. 5 million), Measured
by the total balance amount, the Bank achieved 7. 8% nominal
business volume growth in real terms, almost as in 2011 (7.
7%). In 2009, under the negative conditions, caused by the
global crisis, real value of the total balance was preserved at
the level reached at the end of 2008, while in the previous
years (2005-2008), when the business environment was much
more favourable, the balance amount was cumulatively
increased for 60% in real terms, with no additional borrowings.
Bank’s equity in amount of 5300 million dinars (EUR 50.
6 million) takes 55. 3% of the total liabilities and equity, while
liabilities in amount of 4275 million dinars (EUR 40. 9 million
take 44. 7%, maintaining the level accomplished in 2010 (44.
3%). A permanently high stake of own sources of funds within
the sources of financing gives a good opportunity to the
Bank’s management in negotiating placement terms and in
conducting the liquidity risk management policy.
28
As of Dec. 31, 2011 foreign currency items (including
placements with the currency clause) took around 36. 0%
in Bank’s assets ( 40. 9% at year end 2010 or 35% at the end
of 2009), while 33. 8% in total liabilities (33. 4% at year end
2010 or 31% at the end of 2009), as an outcome of the Bank’s
foreign exchange risk management policy implemented by
maintaining the “controlled long foreign exchange position”,
primarily aimed at preservation of high foreign currency liquidity.
At the end of 2011, short-term funds took 78. 4% of
Bank’s total assets, while short-term sources took 43. 2% of
liabilities. This data show the substantially favourable ratio of
assets and liabilities term structure, produced by high stake
of Bank’s capital in the total balance amount. As of Dec. 31, .
2011 Bank’s term structure was mostly harmonized, however
with high positive cumulative disparities (larger amount of
balance assets than balance liabilities) with all term items,
except for the item with maturities of assets and liabilities
over one year.
.
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Balance Sheet of JUBMES banka: Comparative Balances Review (Dec. 31,2011 / Dec. 31,2010 / Dec. 31,2009) (thousand RSD)
BALANCE SHEET ITEMS
Dec. 31, 2011
Dec 31, 2010
Dec. 31, 2009
ASSETS
1.
Cash and Cash Equivalents
2.
Revocable Loans and Deposits
3.
Receivables arising from interest, fees & commission,
trade, fair value adjustments of derivatives and other
4.
Loans and Deposits to Customers
835. 888
676. 845
870. 094
2. 169. 200
1. 435. 966
1. 662. 171
35. 854
18. 433
37. 868
2. 829. 634
3. 785. 132
3. 123. 878
1,302. 810
1,329. 349
809. 500
60. 492
53. 267
44. 428
5.
Securities (excluding repurchased own shares)
6.
Equity Investments (Interests)
7.
Other Placements
1. 178. 501
618. 449
16. 842
8.
Intangible Assets
14. 188
5. 843
8. 899
9.
Property, Equipment and Investment Property
995. 926
836. 786
872. 556
10.
Non-current assets held for sale and assets
from terminated operations
11. Оther Assets
TOTAL ASSETS
24. 368
24. 368
-
130. 755
95. 445
49. 576
9. 575. 416
8. 879. 883
7. 495. 812
4. 275. 710
3. 933. 478
3. 063. 030
868. 762
534. 799
593. 955
2. 212. 164
2. 440. 280
1. 707. 028
LIABILITIES
LIABILITIES
1.
Transaction Deposits
2.
Оther Deposits
3.
Borrowings
4.
Interest, fees & commission payables and fair value adjustments of derivatives
5.
Provisions
6.
Current Income Tax Liabilities
-
-
-
3. 200
660
653
32. 607
27. 487
20. 130
2. 826
1. 632
2. 333
7.
Tax and Dividend Payables
21. 539
52. 978
88. 156
8.
Deferred Tax Liabilities
38. 494
24. 853
26. 392
9.
Other Liabilities
1. 096. 118
850. 789
624. 383
5. 299. 706
4. 946. 405
4. 432. 782
EQUITY
1.
Share and Other Capital
2. 814. 356
2. 717. 062
2. 207. 516
2.
Reserves
2. 034. 945
1. 820. 526
1. 556. 074
3.
Unrealized losses on securities available-for-sale
4.
Retained Earnings
TOTAL LIABILITIES & EQUITY
- 13. 174
- 5. 954
-
463. 579
414. 771
669. 192
9. 575. 416
8. 879. 883
7. 495. 812
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Bank’s Assets
Disposable Liquid Assets,
Liquidity Management
In the Bank’s assets as of December 31, 2011 the dominant
position take credits and deposits (placements to clients
and local Banks) in total amount of 2830 million dinars (27.
0 million euro, i. e. 29. 6% share), and revocable deposits and
credits (required foreign exchange reserve and claims in
dinars from the Central Bank under repurchase transactions)
in total amount of 2169 million dinars (20. 7 million euro i. e.
22. 6% share), as well as securities investments and equity
investments in amount of 1363 million dinars (13. 0 million
euro or 14. 2%).
In comparison to the year 2010, revocable deposits
and credits recorded a significant share increase in Bank’s
assets (due to higher level of placements with NBS under
liquid funds surpluses and repo transactions), as well as
Previous years’ high level of dinar and foreign exchange
liquidity was further maintained in 2011. Daily disposable
liquid assets enabled a completely fluent execution of all
customers’ and Bank’s orders, since their level was kept
permanently high. As of Dec. 31, 2011 daily disposable
liquid assets amounted to 3631 million dinars (34. 7 million
euro), exceeding the total amount of deposits held with
the Bank for 22. 0%.
This assets category includes cash and cash equivalents
(cash in dinars, foreign exchange cash, funds in gyro-account,
including required dinar reserve with NBS, as well as funds
on the Bank’s current accounts held with the foreign
correspondent Banks), dinar surplus funds placed with NBS
and local banks, foreign exchange surplus funds placed
Structure of the Bank’s Assets as of Dec. 31, 2011
Property, Equipment & Intangible Assets 10.6%
Revocable Loans & Deposits 22.6%
Securities & Equity Investments 14.2%
Other Placements & Other Assets 14.3%
Loans & Deposits to Customers 29.6%
Cash & Equivalents 8.7%
other placements – especially placements in purchase of
claims from Bank’s clients (against their foreign and local
debtors). Lendings are significantly decreased (due to higher
profitability of placements in purchase of claims).
30
with foreign correspondent banks and local banks, required
foreign exchange reserve held with the NBS as well as the
placements with NBS under repurchase transactions and
placements in treasury bills issued by the Republic of Serbia.
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Cash and Cash Equivalents. This category consists
of required dinar reserve allocated in Bank’s gyro account,
funds in accounts with foreign correspondent banks and
dinar and foreign exchange cash. At the end of 2011 funds
in Bank’s current accounts amounted to 8. 0 million euro (6.
4 million euro at the end of 2010), with 6. 0 million euro as
the annual average. As in previous years, high level of cash
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dinar funds in an average amount of 55 million dinars was
placed with the local banks, earning interest rates in the
range between 8. 2% and 15% p. a. with interest income
of 5. 8 million dinars. The highest average level with local
banks (148 million dinars) was recorded in April, while the
re-capitalization of another local bank was administered.
The surplus of foreign exchange liquid funds the Bank
Structure of Disposable Liquid Assets of JUBMES banka a. d. as of Dec. 31, 2011
Republic of Serbia Treasury Bills 8.9%
Cash & Equivalents 23.0%
Surplus Funds Placed with NBS 7.9%
Time Deposits with Foreign Banks 8.3%
Foreign Exchange Required
Reserve with NBS 20.5%
Repo Placements with NBS 31.4%
assets is achieved due to:
• Banks’ obligation (in conformity with NBS regulations) to
allocate in their gyro-accounts not only required dinar
reserve but also a portion of foreign exchange reserve
required to be held in dinar counter-value;
• High foreign exchange funds held in accounts with
foreign banks, due to extremely low interest rates offered
on term deposits, especially at the end of 2011.
Liquid Assets Surplus. The Bank deposited daily surplus
of liquid dinar funds “over night” with the Central Bank
and with local solvent banks. Surplus of liquid dinar funds
placed with NBS earned interest rates on deposit facilities
which varied between 7. 25% and 10% p. a. Surplus of liquid
placed for periods of 1-7 days and 30 days with first rate
foreign banks as well as with local solvent banks. Interest
rates on inter-banking foreign currency deposits continually
declined in 2011, as in 2010. Interest rates downturn, both on
local and foreign money markets, was caused primarily by
the drop of interest rates of Euribor, interest rate of European
Central Bank, as well as by the drop of US Federal Reserves
interest rate. For USD the Bank earned interest rate of 0. 03%1. 5%, and for EUR 0. 1%-1. 8%.
Placements with NBS under REPO Operations;
Placements in Republic of Serbia Treasury Bills. In order
to reduce the inflation pressure by immobilization of surplus
funds, NBS once a week sells 14-days bills through regular
31
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repurchase auctions. In response to inflationary trends NBS
in period from January to April 2011 gradually introduced
sharper monetary policy, in order to stabilize inflation in
mid-term around the targeted value. For this reason NBS
increased the reference interest rate from 11. 5% to 12. 5%.
Since June, when the reference interest rate was lowered
for 50 bps, NBS started to lead a milder monetary policy.
Fall of the inter-annual inflation rates produced diminishing
of the inflation expectations and for this reason in second
half of 2011 NBS gradually reduced the reference interest
rate down to 9. 5% at the end of the year.
In 2011 JUBMES banka placed in repurchase transactions
23. 5 billion dinars, with annual average placements of 894
million dinars. NBS reference interest rate on placements in
repurchase transactions was shifting in 2011 from 9. 75% to
12. 5% (from 8% to 11. 5% in 2010). The Bank earned revenues
under this item in amount of 105 million dinars.
Due to increased Budget requirements, the Treasury
of the Republic of Serbia in the course of 2011 organized
more and more treasury bills auctions, raising the issued
value and extending the maturity periods, which resulted
in augmentation of the total bank sector placements in
treasury bills. In addition, three-year bills in dinars and 15year bills in euro were introduced. During 2011 interest of
investors and banks (including JUBMES banka) for investing
in Government’s securities was enormous. Therefore, the
Bank’s average placements in treasury bills amounted to
293 million dinars. In the first half of 2011 Bank’s portfolio
contained also treasury bills with the currency clause, in
which the Bank invested at the end of 2010, in total amount
of 20 million dinars.
32
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Required Reserves. As in previous years, in 2011, in
conformity with NBS regulations, the Bank fulfilled its
obligations in respect of required reserves calculation and
allocation. At the end of 2011 the Bank allocated on its gyro
account dinar funds in amount of 153. 8 million dinars for the
required dinar reserve, and for the part of required foreign
exchange reserve in dinar counter-value. At the same time,
the required foreign exchange reserve amounting to total
counter-value of 7. 1 million euro, mostly in US dollars, was
allocated in the accounts held with NBS.
New NBS Decision on Banks’ Required Reserves was
introduced on February 17, 2011, to be fully in force since April 17.
The Decision introduces new differenced required reserves
rates both on dinar and foreign currency base, depending
on the term structure of liabilities. The 5% required reserves
rate shall be applied to liabilities in dinars with up to 2 years
maturity, while required reserve shall not be required for the
liabilities with over 2 years maturity. On the other hand, 30%
required reserves rate shall be applied to liabilities in foreign
currency with up to 2 years maturity, while 25% to liabilities in
foreign currency with over 2 years maturity. Differenced rates
are also introduced for the part of required foreign exchange
reserve in dinar counter-value. Banks allocate in dinars 15%
of required reserves calculated on foreign currency liabilities
with up to 2 years maturity, as well as 10% on foreign currency
liabilities with up to 2 years maturity.
The result coming out of the new required reserves
calculation is reduction in allocations in dinars and modest
increase of the allocations in foreign currency.
The Bank harmonized the currency structure of required
foreign currency reserve allocated in NBS accounts, with the
needs of its foreign currency liquidity, providing thereby
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necessary foreign currency structure of its liquid foreign
currency assets and (to the possible extent) optimal interest
returns. In conformity with these principals, the Bank allocated
its required foreign currency reserve mostly in US dollars.
National Bank of Serbia gives 2. 5% p. a. for foreign currency
required reserves allocated in dinars, while there is no interest
on required reserves allocated in foreign currency.
Lendings* and Deposits
Total of Banks lendings and deposits with other banks as
of Dec. 31,. 2011 reached the net amount of 2830 million dinars
(upon impairment allowances), i. e. 27. 0 million euro, being
a 25. 2% decrease compared to the end of 2010. Lendings
and deposits take 29. 6% of the Bank‘s total balance assets.
In the Bank‘s placements sectoral strructure, placements
to local companies prevail, with 63,5%, whereof over 75%
for short-term credits.
At the end of 2011, by the term structure – 72% of total
Bank‘s credit placements goes for short-term placements
and by the currency structure as of Dec. 31, 2011 – over 81%
goes for dinar placements.
Security Investments, Equity Investments
and Capital Portions Investments**
As of Dec. 31, 2011 the Bank invested under these
categories over 1363 million dinars (13. 0 million euro), being
14. 2% of the Bank’s balance assets. Security investments
amount to 1303 million dinars, while investments in capital
portions, other equity investments and interests in other
legal entities amount to 60 million dinars.
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By the currency structure of investments, around
16% goes for the foreign currency investments – Serbian
Government bonds and bonds of the Republic of Iraq,
while the remaining 84% goes for dinar investments in
bills of exchange discount purchase, the Republic of Serbia
Treasury bills, shares of the local banks and corporations,
and investments in the mentioned shares and in capital
portions of the Bank’s subsidiaries.
In 2010 Bank’s investments in securities remained on the
previous year’s level. Majority of investing was generated by
Bank’s policy related to short-term placements to corporate
clients - instead of credit approving for working capital,
clients’ liquidity was supported by discount purchase of
bills of exchange issued by their local commercial debtors.
In 2011 such Bank’s investments reached 739. 8 million
dinars compared to 768. 9 million dinars at the end of 2010.
Other Placements
Apart from the discount purchase of locally issued bills
of exchange, in 2011 JUBMES banka placed significant funds
in the product which was introduced for the first time in
2010, conceived as purchasing of commercial claims bearing
the right of recourse. The Bank purchased corporate clients’
commercial claims against:
• Local entities (purchase of invoices), and
• Foreign entities (purchase of invoices, provisional civil
engineering situations and claims under documentary
loro letters of credit).
At the end of 2011, the Bank purchased claims against
foreign entities amounted to 459 million dinars (around 4. 9
million euro) and against local entities – 718 million dinars.
* More details in the chapter: LENDINGS
** More details in the chapter: SECURITY INVESTMENTS
33
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Bank’s Liabilities and Equity
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At the end of 2011, the Bank retained high participation
of own sources of financing (equity) in amount of 5300
million dinars (around 50. 6 million euro, thus preserving
its real value from the end of 2010) making 55. 3% of the
Bank’s total sources of funds.
many times over the Serbian banking sector average (0,26:1),
proving that the Bank is highly independent and capable
to invest in its further development. Under conditions of
diminished liquidity in real sector, preservation of the deposit
potential was a high target set by the Bank’s policy for the
previous year. Therefore, a moderate deposit growth of 4.
3% in real terms was a significant accomplishment.
Bank’s Liabilities
Bank’s Equity
Total Bank’s liabilities as of Dec. 31, 2011, amounting to
4275 million dinars or 40. 9 million euro (augmenting the
real value from the end of 2010 for 9. 6%), represent 44. 7%
of the Bank’s total balance. Liabilities lion’s share of 72% is
taken by deposits* placed by legal entities and individuals
with JUBMES banka, amounting to 3081 million dinars
or 29. 4 million euro, being a 4. 4% increase in real terms,
compared to 2010.
In 2011 the ratio of Bank’s own sources against borrowed
sources was 1. 24:1. 00 (at the end of 2010 it was 1,26:1), still
As of Dec. 31, 2011 total equity of JUBMES banka a. d.
(share capital, issue premium, reserves and retained earnings)
amounts to 5300 million dinars (50. 6 million euro), representing
55,3% of sources of financing. In distinction to the period
2005-2008, when total equity was more than doubled
(mostly owing to the earned net profit), maintaining of the
equity’s real value was significant for Bank’s operations in
2009 and 2010, in a business environment still suffering the
crisis effects. Under such conditions Bank’s equity growth
of 8. 0% in real terms achieved in 2011 is one of the most
significant business accomplishments.
* More details in the chapter: DEPOSIT OPERATIONS
Structure of Liabilities and Equity of JUBMES banka as of Dec. 31, 2011
Financial Mediation Industry Deposits 1.7%
Savings & Individual Deposits 15.0%
Other Liabilities 12.5%
Corporate Deposits 10.1%
Equity 55.3%
Other Deposits 5.4%
34
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Bank’s share capital as of Dec. 31, 2011, amounting to
2622. 0 million dinars, is represented in total number of
259,602 regular shares in nominal value of 10,100 dinars
per share. Bank’s shareholders are Republic of Serbia, local
and foreign public and private legal entities and individuals.
Republic of Serbia and local shareholders hold over 77%
and foreign shareholders almost 23% of the share capital.
Individual clients hold 5. 74% of the total Bank’s equity.
Shares of JUBMES banka rank among most liquid
securities in the Belgrade Stock Exchange, coming out of
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Market capitalization of JUBMES banka amounted to 3.
37 billion dinars (32. 25 million euro). Owing to the reputation
merited by constant successful operating, the ratio between
Bank equity’s market and book value (Price to Book Value 0. 68) being the highest of all ratios achieved by local banks
having shares listed on Belgrade Stock Exchange, shows
the significant potential for growth of the share’s market
price, once the financial situation is stabilized i. e. after the
financial crisis recovery. In 2011 Bank’s share market prices
did not adequately represent the real value of shares, having
JUBMES banka Equity Structure as of Dec. 31, 2011
Share Capital 49.5%
Retained Earnings 8.7%
Reserves 38.2%
Bank’s profitable operations executed in previous years,
meriting high investors’ expectations for the forthcoming
period.
In the structure of “Belex 15” Index basket (showing
15 most liquid shares in the market), shares of JUBMES
banka took a 5. 11% stake at the end of 2011. Market price
of the Bank’s shares s of Dec. 31, 2011 amounted to 12. 999
dinars, for 22. 2% lower than the share price at the end of
the previous year (16. 495 dinars).
Other Capital 0.4%
Share Premium 3.2%
in mind that their pricing is negatively influenced by too
simplified indicators and often unrealistic expectations.
On the basis of acquired profit in 2011 the Bank, through
dividend payment in shares, handed over to shareholders a
total of 9633 shares, having the relatively under rated market
value of 1. 2 million euro as of Dec. 31, . 2011.
35
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Bank’s Off-Balance Sheet Items
As of Dec. 31, 2011 the value of the Bank’s off-balance sheet items amounted to 15593 million dinars, being a nominal
increase of 106%, compared to the end of the previous year. This is a result primarily coming out of the fact that all security
instruments held with the Bank are booked under the Off-Balance Sheet, in conformity with the new NBS regulations
related to capital adequacy calculation.
Risky off-balance sheet assets* (payment guarantees, performance bonds, avals and acceptances, uncovered letters of
credit and irrevocable commitments) amounted to 2299 million dinars, placements managed on behalf of third parties 377 million dinars, Republic of Iraq bonds - 2304 million dinars and evidenced repurchase transactions - 1140 million dinars.
Other non risky off-balance sheet assets (mostly received security instruments and evidenced loro guarantees) amounted
to 9438 million dinars, and other off-balance sheet assets to 35 million dinars.
Off-Balance Sheet Items of JUBMES banka as of Dec. 31, 2011
Foreign Sovereign Bonds 14.8%
Repo Placements Evidence 7.3%
Guarantees & Other
Irrevocable Commitments 14.8%
Operations Managed on Behalf of Third Parties 2.4%
Other Off-Balance Assets 0.2%
36
* More details in the chapter: GUARANTEES
Other Non-Risk-Bearing
Off-Balance Assets 60.5%
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INCOME STATEMENT
In 2011 JUBMES banka a. d. gained total income (including net foreign exchange gains) of 1474. 7 million dinars i. e. 14,1
million euro and incurred expenditures of 1233. 6 million dinars (11. 8 million euro), earning net profit upon tax assessment
in amount of 241. 1 million dinars (2. 3 million euro).
JUBMES banka in 2011 operated profitably and achieved profit before tax assessment in amount of 251. 7 million dinars
(over 24 million euro), being 22,45% nominal profit growth compared to 2010, thereby earning profit planned for the year 2011.
Profitability growth in 2011 was produced by income achieved in fundamental banking activities, and due to faster
growth of net interest, fees and commission income than operating expenses growth. The Bank accomplished relatively
high operating efficiency rate achieving 72% “cost to income ratio” (operating expenses to net interest, fees and commission
income ratio) for the period January 1 to December 31, 2011. This is a significant improvement of Bank’s operational
productivity in comparison to 96% achieved in 2010.
JUBMES banka Income Statement for the Years Ended Dec. 31, 2011, 2010 and 2009
INCOME STATEMENT ITEMS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Interest Income
Interest Expense
Net Interest Income
Fees & Commission Income
Fees & Commission Expense
Net Fees & Commission Income
Net gains (losses) on the sale of securities
Net Exchange Gains (Losses)
Dividend & Other Equity Investment Income
Other Operating Income
Net Reversals of Impairment Losses and Provisions
Staff Costs
Depreciation and Amortization Charge
Other Operating Expenses
Net gains (losses) on the valuation of financial assets and liabilities
PROFIT BEFORE TAXATION
Current Tax Expense
Deferred Tax Income/Expenses
NET PROFIT
Index
2011/2010
138
127
140
159
106
168
13
178
112
237
109
107
105
122
179
230
121
(thousand RSD)
Jan. / Dec.
2011
980. 246
(141. 344)
838. 902
156. 383
(13. 705)
142. 678
4. 445
25. 618
22. 362
14. 690
(92. 719)
(373. 182)
(47. 265)
(285. 098)
(541)
251. 659
(11. 060)
497
241. 096
Jan. / Dec.
2010
711. 788
(111. 547)
600. 241
98. 056
(12. 955)
85. 101
34. 954
(13. 869)
12. 581
14. 690
39. 073
(341. 333)
(44. 292)
(271. 983)
90. 351
205. 514
(6. 178)
216
199. 552
Jan. / Dec.
2009
659. 947
(75. 522)
584. 425
77. 326
(11. 098)
66. 228
(27. 946)
1. 473
16. 966
13. 064
235. 043
(348. 789)
(34. 050)
(227. 858)
28. 853
306. 909
(17. 519)
(171)
289. 219
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Interest, Fees and Commission
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Total fees and commission income in 2011 amounted
to 156. 4 million dinars, for 60% surpassing such income
Total of the Bank’s income on interest, fees and
earned in 2010. Significant fees and commission income
commission in 2011 amounted to 1136. 6 million dinars
growth was accomplished due to recognizing of fees
(around 10. 9 million euro), while net income on interest,
and commitments for servicing commercial claims of the
fees and commission amounted to 981. 6 million dinars (9. 4
Republic of Iraq. Banking services charges take 49%, while
million euro). Compared to 2010, the Bank’s net profit coming
the remaining 51% belongs to commission fees for the issued
from interest, fees and commission was increased for 43. 2%.
guaranties and claims purchase transactions.
In 2011 the Bank gained income from interest in amount
Fees and commission expenses amounted to only 13.
of 980. 2 million dinars, and incurred interest expenditures of
7 million dinars in real terms, being slightly higher than in
141. 3 million dinars. Such a high interest differential (on every
2010. Under this structure payment operations charges paid
6. 93 dinars of interest revenues, only one dinar of interest
to foreign and local banks take 60% share.
expenditures) is the consequence of the high share of Bank’s
own financial sources in the Bank’s total financial potential.
Lending and deposit income take 57% (561. 8 million
dinars) of the total interest income, while income gained
from interest on security investments take 43% or 418. 4
million dinars (mostly related to placements in repurchase
transactions, Treasury bills issued by the Republic of Serbia,
bonds issued by the Republic of Iraq, placements in discount
purchase of bills of exchange and claims purchase). In 2011
interest income growth was larger than in 2010, mostly due
to the interest rates increasing trend, present throughout
the year, to the claims purchase increase (both in dinars
and in foreign currency) as well as to the larger volume of
purchased bills of exchange. Retail time deposits interests
take 71. 2 million dinars or over 50% of the total interest
expenditures (primarily interest on time foreign currency
deposits).
38
Other Expenditures
In 2011 the Bank recorded net losses from impairment
of financial assets and provisions in amount of 92. 72 million
dinars, while the net gains in 2010 amounted to 39. 07 million
dinars. Such trend is resulting from the increased allowances
for impairment of placements and provisions for off-balance
sheet items, due to more cautious attitude when estimating
the placements collectability considering the generally
aggravated economic situation in Serbia during 2011.
In 2011 expenses for salaries and other personal
expenses amounted to 373. 2 million dinars, being a 9. 3%
increase compared to the previous year (341. 3 dinars), less
than average inter-annual inflation, while their stake in total
expenses decreased from 37. 0% in 2010 to 31. 8%.
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Net Income and Profitability of
the Bank’s Operations in 2011
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financial results of the banking sector measured by the profit
before taxation (13th place), shows the Bank’s successful
business results achieved in 2011.
In 2011, as in previous years, taking into account standard
indicators of operational efficiency, JUBMES banka achieved
much better results than the banking sector’s average.
Standard operation efficiency indicators of the Bank
and the banking sector of Serbia for the period 2007-2011
are compared below:
Comparison of the Bank’s stake in total balance amount (30th
place; 0. 36% share) and in total capital (21st place; 0. 97%
share) of the banking sector, with the Bank’s participation in
INDICATORS
2011
2010
2009
2008
2007
2,63%
*1. 23%
2. 31%
1. 00%
3. 82%
0. 93%
18. 44%
1. 92%
9. 82%
1. 43%
4,75%
*6. 04%
4. 15%
5. 08%
13. 90%
4. 48%
31. 20%
7. 69%
16. 64%
6. 81%
ЕUR 20041
*ЕUR 8959
EUR 16234
EUR 8056
EUR 27832
EUR 6630
EUR 125961
EUR 11597
EUR 63268
EUR 9635
8. 76%
5. 81%
6. 76%
4. 28%
7. 27%
4. 65%
9. 15%
5. 72%
6. 75%
4. 06%
Net Income / Assets (RoA)
JUBMES banka
Bank Sector Average
Net Income / Equity (RoE)
JUBMES banka
Bank Sector Average
Net Income per Employee
JUBMES banka
Bank Sector Average
Net Interest Income / Аssets
JUBMES banka
Bank Sector Average
* Approximation without data for one bank (showing enormous losses in 2011) - if included, sectoral data would be non-illustrative
39
Ramonda serbica
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Josif Panč
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PLACEMENTS AND
GUARANTEES

DEPOSIT
OPERATIONS
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LENDINGS
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Credit Policy of the Bank
The total lendings, which were reduced in 2011 for 26.
6% in comparison with 2010, as of Dec. 31, 2011 amounted
to net value of 2318 million dinars (22. 16 million euro),
taking 24. 2% stake in Bank’s total assets. This reduction
of lendings volume in 2011 was the outcome of modified
short-term placements policy. Instead to approve traditional
loans for working capital to its corporate clients, the Bank
supported clients liquidity through discount purchase of
bills of exchange issued by their local commercial debtors
(investments balance at the end of 2011 – 740 million dinars)
as well as through purchase of their commercial claims
against local and foreign legal entities (balance at the end
of 2011 - 1175 million dinars).
At the end of 2011 short-term credits take 89. 4% of
lendings, and dinar credits – 96. 8%.
In 2011, according to Bank’s credit policy, the significant
volume of credits was approved to corporate clients and
small and medium enterprises, as well as to large companies
- for their projects executed in Serbia and abroad. Priority
was given to companies from trade and services industry,
metal processing industry, civil engineering, transport and
communications - by extending short-term and longterm arrangements, framework credit arrangements and
agreements on business cooperation.
Credit activity was focused on development of the existing
and introducing of new products. In aim to strengthen its
market position the Bank offered to its clients - legal entities
various financial products. Before credit approval the Bank
appraised the following: client’s credit worthiness and
credibility, capital, indebtedness level, ability of meeting
duties against the Bank, placements safety, volume of client’s
Term and Currency Structure of JUBMES banka Gross Lendings as of Dec. 31, 2011
Short-term Currency Loans 1.4%
Long-term Currency Loans 0.7%
Short-Term Dinar Loans 65.0%
Long-term Dinar Loans 31.2%
42
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payment operations (both local and international), as well
as the quality of Bank’s previous cooperation with the client.
In 2011 the Bank approved credits to individual clients,
according to the volume of the funds allocated for this
purpose. The Bank implemented its credit policy related to
individual clients in conformity with the legal regulations, its
business policy and capabilities, as well as with fundamental
targets for development and improvement of savings.
Borrowers were individuals meting the credit ability
conditions.
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Lendings to Legal Entities
In 2011 the Bank approved lendings to its clients, big
companies, small and medium enterprises, as well as to
entrepreneurs - covered by various security instruments:
mortgages registered in the Bank’s favour, foreign exchange
or dinar collateral deposits, bank guarantees, promissory
notes issued by corporate credit applicants or by individual
company owners with endorsement letters or direct debit
authorizations, collateral promises, pledge on securities or
corporate credit applicants’ equipment etc. As a rule, long-
Sectoral and Currency Structure of JUBMES banka Gross Lendings as of Dec.31, 2011
Dinar Loans to Indivudual Customers 16.1%
Dinar Loans to Legal Entities 82.1%
Borrowers were:
• Bank’s share-holders and individuals employed with
Bank’s shareholders or clients
• Clients which hold RSD, foreign currency or current
account, or savings (foreign currency or RSD) in the Bank;
• Individuals intending to become Bank’s clients.
Individual’s credit ability was evaluated by considering data
and documentation presented with their credit application
and also by inspection of the report of the Credit Bureau of
Association of Serbian Banks.
Currency Loans to Legal Entities 1.8%
term credits were approved with real coverage – first rate
mortgage on real estate registered in Bank’s favour, foreign
currency or dinar collateral deposits or future receivables
araising from clients’ export operations.
In 2011 the Bank approved to legal entities (corporations,
SMEs, entrepreneurs and other legal entities) the following
categories of RSD credits, amounting in total 2007 million
dinars i. e. 19. 2 million euro as of 31. 12. 2011:
• credits for working capital
• credits for authorized overdraft in transaction accounts
43
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N
U
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L
R
E
• credits for property and equipment
• credits under business cards and
• other credits
Foreign currency credits were approved to companies
for the purpose of payments abroad in total countervalue
of 43. 1 million dinars as of Dec. 31, 2011.
Short-term credits were approved with fixed interest
rates (effective rates between 7. 00% and 34. 49% p. a. for
credits in dinars and between 5. 00% and 15. 39% p. a. for
foreign currency credits or for credits with currency clause)
and with variable interest rates (rates between the referent
rate and referent rate increased by 1. 25%).
Long-term credits were approved with the fixed rates in
the range from 9. 00% to 23. 14% p. a. for credits in dinars and
with the fixed rate of 11. 35% for credits in foreign currency
or credits with currency clause. Rescheduled loans earned
interest in range from 4. 00% to 8. 50% p. a.
Lendings to Individual Clients
During 2011 the Bank placed its funds to individuals
through short-term and long-term lending. As of Dec. 31, 2011
balance of credits disbursed to personal clients amounted
to 406. 2 million dinars or 3. 9 million euro.
Decrease of Bank’s total lendings to individual clients
was a consequence of the crisis developments impact on
the household sector, being directly reflected on the loans
categories designed to support long-term investments, e.
g. housing loans and lombard loans (prevalently used for
securities purchase and covered by pledge on securities).
44
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Individual Clients Lendings Structure
under Products Type, as of Dec. 31, 2011
(thousand dinar)
2011
Credits for housing
2010
272,854
290,111
Credits under credit cards
54,697
51,952
Long-term cash credits
27,583
33,860
Long-term credits
for car purchase
16,790
18,528
Lombard credits
9,418
27,181
Credits for authorized
overdraft on current account
12,027
7,346
Other credits to
individual clients
12,877
14,791
406,245
443,768
Total:
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SECURITY INVESTMENTS
The book value of the Bank‘s security investments, as
of Dec. 31, . 2011 amounted to 1314 million dinars or over 12.
6 million euro (thus remaining on the prevous year’s level),
taking 13. 8% of the Bank‘s total balance amount.
Total Bank’s market portfolio, as Dec. 31, . 2011 includes
the following:
A
А.
D.
B
E
O
G
R
A
D
• Debt securities – bonds of the Republic of Iraq, which
are tradable and nominated in US dollars, amounted
in RSD counter-value to 194. 7 million dinars;
• Serbian Government Treasury bills (to be held until
maturity), in amount of 323. 7 million dinars, and
• Discount -purchased bills of exchange (held until
maturity) in amount of 739. 8 million dinars.
As of Dec 31, 2011 in Bank’s security investments structure
Structure of JUBMES banka Security Investments as of Dec. 31, 2011
Serbian Government Treasury Bills 20.8%
Local Banks & Companies Shares 1.2%
Discount-Purchased Bills of Exchange 56.3%
Republic of Iraq Bonds 14.8%
Republic of Serbia Bonds1.6%
Corporate Bonds 1.5%
• S hares of banks and companies traded in the Belgrade
Stock Exchange, mostly by the method of continuing
trade, in amount of 14. 4 million dinars, whereof 13.
1 million dinars goes to tradable securities and the
remaining 1. 3 million dinars to securities of fair value
in profit or loss account;
• Corporate bonds to be held until maturity, in amount
of 20. 3 million dinars;
• Debt securities – Serbian Government bonds issued
for settlement of the debt related to former foreign
currency savings and nominated in euro, in RSD countervalue of 21. 4 million dinars of fair value in in profit or
loss account;
foreign currency investments (Serbian Government bonds
issued for settlement of the debt related to former foreign
currency savings and bonds of the Republic of Iraq) take 16.
4% and the remaining 83. 6% goes to security investments
in dinars.
Portfolio of Tradable Proprietary Securities
Market value of the total Bank’s shares portfolio, as of
Dec. 31, 2011 amounted to 14. 4 million dinars.
The majority of its portfolio shares the Bank acquired
in the period until the end of 2007, while in the first quarter
of 2008 the Bank invested mostly in shares of local banks,
which achieved over-average business results and which
45
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attracted corporative and individual investors and public
sector to invest in the Serbian banking sector. Nevertheless,
fall in overall liquidity of the financial market, especially
in the fourth quarter of 2010 and in 2011, caused the fast
drop of banks’ shares market prices, being the most liquid
securities on the Belgrade Stock Exchange. For this reason
Bank’s portfolio market value suffered a decline too.
Compared to Bank’s total balance, market value of
the Bank’s shares portfolio is relatively low. Therefore, as in
previous years, it did not significantly affect Bank’s liquidity.
Debt Securities Portfolio
Serbian Government Bonds. Nominal value of the
Government bonds issued to settle the debt related to
former foreign currency savings, from the Bank‘s debt
securities portfolio, amounted to EUR 208. 640 as of Dec.
31, 2011. Market value of the bonds portfolio was for 2. 20%
lower, amounting to EUR 204. 049,92 or 21. 4 million dinars.
Thus, discrepancy from the nominal value was EUR 4. 590,08.
Bonds of the Republic of Iraq. As of Dec. 31, 2011
the nominal value of the bonds of the Republic of Iraq, in
Bank’s portfolio, amounted to USD 3. 0 million, while their
market value was USD 2. 407. 500. The bonds’ market value
decrease from 92% at the end of 2010 to 80. 50% at the end
of 2011 was produced by the latest blow to sovereign debt
securities market, caused by Euro zone crisis, since European
entities mostly participate in the Iraqi bonds trade. It has
to be underlined that in 2011 the issuer – the Republic of
Iraq, continued to service its liability under coupon interest
bearing the agreed rate of 5. 8% p. a. with a half-year maturity,
calculated backwards.
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The bond’s market value in 2011 remained stable over
80% of their nominal value, which was a result of investors’
greater confidence in debt securities than in proprietary
securities, as well as of the opinion that Iraqi ability to service
its debts depends on oil prices much more than on world
economy and market recovery. Since Iraqi bonds are traded
on Eurobond market, their recent value fluctuates depending
mostly on oscillations of EUR and USD cross rates.
Corporate Bills of Exchange in the Bank’s Portfolio.
In its securities portfolio structure in 2011, the Bank booked
securities in dinars to be held until maturity – the bills of
exchange issued by solvent local corporations in nominal
value of 739. 8 million dinars.
Republic of Serbia Treasury Bills. During 2011 JUBMES
banka invested in the Republic of Serbia Teasury bills
nominated in dinars the amount of 293 million dinars with
maturity periods of 3, 6 and 12 months and interest rate in
the range from 10. 85% to 13,00% and as of 31,12,2011 the
total balance amounted to 323. 7 million dinars. On the last
day in 2010 the Bank invested 20. 0 million dinars in bills
with the currency clause, that were retained in its portfolio
till the maturity, i. e. until June 30, 2011.
Ј
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GUARANTEES
The Bank’ liabilities under guarantees, documentary
credits, avails and acceptances as well as for the irrevocable
commitments for undisbursed credits (classified off-balance
sheet assets) as of Dec. 31, 2011 amounted to 2299 million
dinars, recording 9% nominal growth and over 10% in real
terms (expressed in euro) compared to 2010. This is a significant
business result, having in mind that crisis effects have been
permanently present in the real sector.
For this reason in 2011 the total amount of the payment
guarantees the Bank issued, especially by order of the clients
engaged in civil engineering industry, has not been significantly
increased, especially for the projects carried out abroad
At the end of 2011 the volume of guarantee operations
(guarantees and other sureties) amounted to 2125 million
dinars taking 13. 6% of the off-balance sheet structure.
The volume of RSD guarantee operations amounted to
1335 million dinars (1297 million dinars as of Dec. 31, 2010),
while the volume of foreign currency guarantee operations
reached 7. 55 million euro (6. 12 million euro as of as of Dec.
31, 2010).
Guarantee operations were harmonized with the Bank’s
business policy which ties their volume strictly to limits
fixed by risk management criteria and also to the balance
sheet limitations. This policy also requires efficient security
instruments necessary to cover those potential liabilities.
Due to client solvency identified in advance, the Bank has
not received demands for payment under any guarantees
from the local or foreign banks or other beneficiaries.
Classified Off-balance Sheet Assets Structure as of Dec. 31, 2011
Payment Guarantees 29.2%
Performance Bonds 62.3%
Other warranties 1.0%
Irrevocable Commitments for Undisbursed Credits 7.5%
47
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DEPOSIT OPERATIONS
As of Dec. 31, 2011 the Bank raised total deposits in amount of 3081 million dinars (29. 4 million euro), being a 3. 6%
increase compared to the end of 2010, thus maintaining the level of the deposit potential, as well as the stability of sources
of funds – being provided by our operations policy. As at the end of the previous year, deposits hold a lion’s share of 72%
in Bank’s total liabilities and 32. 2% of the balance amount.
The basic data on the Bank’s deposits structure against clients’ categories as of end of 2010 and 2011 are presented below:
(thousand dinars)
Categories of Depositors
Dec. 31, 2011
Corporate Clients
Individuals
Local Banks and insurers
Оther Depositors
964. 502
1. 438. 392
163. 110
514. 922
31. 3%
46. 7%
5. 3%
16. 7%
852. 317
1. 363. 663
267. 774
491. 325
28. 7%
45. 8%
9. 0%
16. 5%
113
105
61
105
3. 080. 926
100. 0%
2. 975. 079
100. 0%
104
TOTAL DEPOSITS
%
Dec. 31, 2010.
%
Index 2011/2010
These data show that in business environment suffering from the lasting liquidity crisis, the deposits of individuals
and other legal entities recorded only mild increase, while the corporate and SMEs’ deposits were increased for 13. 2%, i. e.
surpassing the level of inter-annual average inflation in 2011 (11%). This is of great importance for the Bank, which is mainly
focused at corporate banking operations.
At the end of 2011 foreign currency deposits take over 75. 5% (72. 4% at the end of 2010) and dinar deposits 24. 5% of
the total deposits. High foreign currency deposits stake in few previous years was due to constant dinar depreciation and
to increase of individual clients’ deposits, which are mostly in foreign currency (97. 6%).
Term and Currency Structure of Deposits Placed with JUBMES banka as of Dec. 31, 2011
Transaction Deposits 28.2%
Special Purpose Deposits 0.3%
Colateral Deposits 1.2%
Term Deposits 31.5%
48
Savings 38.8%
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RISK MANAGEMENT
51
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Banks’ readiness to take risk in daily activities is a
necessary prerequisite for accomplishment of the positive
financial result. Risk management includes appraisal and
measuring of the risk exposure, quantification of acceptable
risk by the risk limits system, reporting on and monitoring
over limits utilization and corrective measures intended to
bring the items within the fixed limits. Risk management
also involves adequate risk valuation, charging customers
for the risk price, special provisions for the risk covering,
managing the risk portfolio and control over the complete
risk management. With aim to improve business results,
banks create risk exposure, paying special attention to credit
and market risks (which consequently generate operational
risk in particular). Banks apply risk monitoring, measuring
and managing, closely observing the uniform standards
and developed models.
Risk management system has been established in the
Bank by introducing adequate policies and enactments.
Aiming to achieve positive business results, the Bank’s bodies
and the unit in charge for the risk management are engaged
in monitoring the changes in legal requirements, analyzing
their influence on the Bank’s overall risk exposure and take
measures for complying operations and procedures with
new regulations.
During months of June and December 2011 NBS
adopted a set of decisions finishing thereby the regulation
framework for introduction and implementation of Basel II
standards in Serbian banking system. This set of regulations
has been in force since December 31, 2011.
Credit Risk. Following its placement policy, the Bank
strives to minimize credit risk and bring it within acceptable
limits by selection of credit applications – based on regular
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analyses of capabilities of clients or applicants to fulfill their
credit obligations, by establishment of the credit limits and
adequate credit pricing covering placement risk, as well
as by applying the credit revaluation, protective interest
and currency clauses and acquiring deposit collateral. In
accordance with the adopted enactments, the Bank identified
credit risks and performed the corrections of balance claims,
setting aside the provisions for losses in off-balance sheet
items and provisions for the estimated losses.
The Bank classified balance sheet and off-balance
sheet assets against assessed collectability level and clients’
financial position, in conformity with NBS regulations and
Bank’s own enactments.
Maximum Bank’s credit risk exposure as of Dec. 31, 2011,
amounted to 8679. 4 million dinars (classified balance sheet
assets: 6391. 6 million dinars, classified off-balance sheet
items: 2297. 8 million dinars), i. e. 82. 9 million euro, for 11.
6% more than at the end of 2010 (as of Dec. 31. 2010: 7777.
3 million dinars or 73. 7 million euro). Maximum credit risk
exposure increase was a result of regulations amendment
related to deposits with highly ranked banks on terms up
to 7 days as well as to the part of Bank’s obligatory reserves
with NBS allocated in US dollars (since the end of 2011 these
categories have been considered as exposed to risk).
Total special provisions covering potential losses under
placements to clients, based on claims classification in
conformity with NBS regulations, as Dec. 31, 2011 amounted
to 1191. 2 million dinars or 1. 85% less compared to Dec. 31,
2010. Reduction of the provisions was caused by application
of the amended Decision on classification of Bank balance
sheet assets and off-balance sheet items.
As of December 31, 2011 the required provisions
amounted to 1005. 1 million dinars. Reduction of the required
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B
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provisions compared to December 31, 2010 amounts to 114.
9 million dinars, i. e. 10. 26%. Total allocations for covering
of the credit risk (allowances for impairment, provisions and
special reserve from the profit) reached 11. 58% of Bank’s
gross credit risk maximum exposure as of Dec. 31, 2011.
Having in mind that Bank’s special provisions exceed
the required provisions, we can state that JUBMES banka
is ranked among reliable commercial banks, which valorize
credit risk in conservative manner.
In the structure of classified balance sheet assets and offbalance sheet items (gross amount) placements exposed to
low risk (classifications A and B) take 45. 30%, while categories
V, G and D take 54. 70 of total classified assets.
Liquidity Risk. Banks are exposed to daily calls on
their disposable cash resources from transaction deposits,
A
А.
D.
B
E
O
G
R
A
D
of these principles, banks prevent financing of long-term
investments from short-term financial sources, ensure the
fulfillment of obligations out of the short-term liquid funds
and finally, significantly reduce liquidity risk.
In conformity with the regulatory requirements the Bank
maintained the liquidity ratio on the level over 1. 0, i. e. over 3.
0 – in accordance with its internal regulations. In the course
of 2011 Bank’s daily liquidity index was moving from 4. 06
to 8. 85, reaching the level of 5. 75 as of Dec. 31, 2011. Let it
be mentioned that the liquidity index for Serbian banking
system as a whole was 2. 17 at the end of the last year.
Placements which may be considered as the primary
liquidity reserve (cash on hand, funds in Bank’s accounts,
placements with the local and foreign banks up to 7-days
term, liquid funds surpluses with NBS and required reserves
with NBS) amounted 2376 million dinars, taking 24. 8% of
Credit Portfolio Structure under NBS Categorization as of Dec. 31, 2011
B 28.78%
А 16.52%
D 6.20%
V 41.21%
current accounts, matured deposits, credit disbursements,
as well as interest and margin payments. The matching and
controlled mismatching of maturities of assets and liabilities
are fundamental for liquidity management. By observation
G 7.28%
the Bank’s total balance as of Dec. 31, . 2011.
Secondary liquidity reserves include non-risk repurchase
placements, Treasury bills and currency savings bonds as
well as the bonds issued by the Republic of Iraq. Placements
53
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L
R
E
which form the secondary liquidity reserves amounted to
1679. 8 million dinars as of Dec. 31, 2011.
Currency Risk. Currency risk is the risk of Bank’s exposure
to effects of fluctuation of foreign exchange rates in the
case of general unbalanced foreign exchange position
(different levels of foreign exchange assets and liabilities),
as well as in the case of unbalanced exchange positions
by individual currencies. In 2011 the currency risk ratio was
shifting between 4. 63% and 16. 19% of so called “opened
foreign currency position” against the equity, to be 5. 94%
as of Dec. 31, 2011 with opened foreign currency position of
211. 8 million dinars. In conformity with NBS requirements,
maximum allowed indices level was 20% during 2011.
Structure of Bank’s total foreign currency position is
consisted of “long” positions in all currencies, in accordance
with the foreign currency liquidity requirements. In spite of
annual dinar appreciation, the Bank managed to achieve
foreign exchange gains by careful managing the long foreign
currency position.
Considering the extreme volatility of dinar parity against
the currency pool present in the balance sheet, the Bank
monitored VaR (Value at Risk) of structural currency risk
(considering the parity tendencies of last 250 days and a 10
day estimation period), which showed expected moderate
values. Furthermore, the Bank analyzes the stress scenario
of the fluctuation in dinar parity of ±10%.
Interest Rate Risk. The Bank leads the policy of
placements interest risk quantification and its minimizing,
by determining interest rates to different levels, depending
on individual placement risks, tenors of granted loans,
54
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security instruments covering the credit repayment, the
credit nomination (dinar or currency clause) etc.
Interest risk jeopardizes specially long-term placements
with fixed interest rates. Therefore, such contracts contain
clauses enabling the Bank to additionally revise and change
interest rates fixed by the contract. However, the Bank places
the vast majority of funds with tenors up to 12 months,
keeping the interest risk at a very low level. Risk of interest
rate fluctuations is defined by using acceptable interest rates,
enabling quick revaluation of monetary funds and liabilities.
Thus, each concrete risk of interest rates fluctuation becomes
negligible. Interest sensitive funds and liabilities are shown
in bookkeeping items, being classified by placements and
liabilities maturities, i. e. by the remaining period up to the
agreed interest rate change date.
In the course of 2011 a positive disparity was indicated
between the total interest sensitive assets and interest
sensitive liabilities in dinars under all term zones, while
the EUR operations show significant negative cumulative
disparity between the interest sensitive assets and interest
sensitive liabilities with 6-12 months and 1-5 years term
zones. Operations in US dollars show negative disparity with
respect to 6-12 months term zone, but with the positive
cumulative gap for the same term zone.
Price Risk. Total market value of the Bank’s securities
portfolio as of Dec. 31, 2011 amounts to 980. 4 million dinars,
being 26% decrease comparing to the end of 2010, primarily
due to Bank’s less investments into discount purchase of the
bills of exchange issued by the Bank’s clients’ local commercial
debtors, in other banks and companies equity, as well as
due to reduced market prices of the Government bonds
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on foreign currency savings and bonds of Republic of Iraq.
Having in mind the higher price risk of securities
investments, the system of monitoring and analyzing the risk
exposure for securities investments has been implemented,
based on VaR (Value at Risk) methodology, as well as on the
stress scenarios enabling consideration of the potentially
extreme market fluctuations influence.
country risk, being 459 million dinars in absolute terms as
of Dec. 31, 2011. 149. 7 million dinars of this amount goes to
placements in Bosnia and Herzegovina and 221. 2 million
dinars to placements in Russia.
The Bank monitors the country risks concerning its
clients, but which do not jeopardize the Bank directly (e.
g. Cuba, Algeria).
Country Risk. As in previous years, the Bank continued
to grant financial support to its corporate clients for the
execution of capital works abroad. For this reason, the Bank
implemented earlier established system of country risk
appraisal and management, in conformity with the legal
regulations. The country risk was analyzed together with
the identification of credit and market risks and represented
an additional limitation to the Bank’s investments in certain
foreign countries and to the financial support to relevant
business ventures of our corporate clients.
As of Dec. 31, 2011 the Bank recorded significant country
risk exposures against Switzerland, Belgium, Russia, Iraq,
Bosnia and Herzegovina and Germany. Risk exposure against
the Republic of Iraq (194. 7 million dinars) is related to bonds
issued by the Iraqi Government under the debt conversion
and only these bonds are classified in Bank’s trade book.
Other placements exposed to country risk are evidenced
in the banking book. Placements exposed to country risk
take 1. 604 million dinars of uncovered exposure (gross
amount) in total of Bank’s risky placements, whereof 20. 75
goes to Switzerland, 16. 94% to Belgium, 16. 90% to Russia
and 12. 54% to Iraq.
Placements under discount-purchased foreign exchange
receivables take 28. 59% of Bank’s placements exposed to
Risk Exposures and Investment Risk. In 2011, the Bank
took care that the risk exposure and investment risks ratios
were in compliance with the regulations, and by applying
certain activities envisaged by the relevant procedures and
decisions with reference to loan origination and investments
in financial and nonfinancial assets) ensured the compliance
of its placements and investments with the ratios prescribed
by the National Bank of Serbia.
Pursuant to the risk management procedures, the Credit
Committee sets the limits, i. e. , the allowed concentration of
placements per particular legal entities or groups of related
entities, and entities related to the Bank. The Management
Board strives to ensure compliance of the Bank‘s exposures
with the prescribed limits, i. e. , it ensures that the sum of all
significant exposures of the Bank does not exceed 400%
of the Bank‘s capital, and also that the total of all significant
exposures of the Bank to its related party does not exceed 5%
of the Bank‘s capital, i. e. , 25% capital in exposures towards
single entities or a group of related entities.
In accordance with the NBS regulations, all Bank
investments are regularly monitored, in order to provide
that investments in a single non-financial sector entity does
not exceed 10% of Bank’s capital, as well as to provide that
investments in non-financial sector entities together with
55
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investments in property and equipment do not exceed
60% capital.
Total amount of Bank’s permanent investments (in
property and equipment and in entities from non-financial
sectors) as of Dec. 31, 2011 amounted to 1019 million
dinars, taking 28. 57% of the Bank’s regulatory capital. This
figure has been significantly increased compared to 2010
(19. 26%), as a result of the increase of Bank’s investments
into property and equipment generated by booking the
appraised value of the buildings, due to reduction of the
capital regulatory value.
Operational Risks. Within the procedure of regular
reporting on the remarked operational risks, the complete
analyses were carried out and required reports were prepared.
Total value of the real and potential losses, resulting from
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operational risk incidents in 2011, did not exceed 1% of the
Bank’s capital. For this reason the Bank was not required to
send to NBS any extraordinary reports concerning such losses.
Compliance of Operational Indicators with the
Criteria Set by the Law. During the whole 2011, the Bank
paid a lot of attention to comply its operation indicators
with criterions set by the Law on Banks. As an outcome, all
achieved operational indicators significantly exceeded the
limits required by the Law. Capital Adequacy Ratio, calculated
(according to local regulations) as the ratio of equity against
balance & off-balance risk bearing assets, amounted to 45.
22% at the end of the year 2011. Permanently high level of
capital adequacy is a result of the Bank’s strategy towards
safe investments and a conservative credit policy. The Serbian
banking sector average for 2011 was 19. 1% as of Dec. 31, 2011
JUBMES banka Performance Indicators, as of Dec. 31, 2011, Dec. 31, 2010 and Dec. 31, 2009
Performance Indicators
Dec. 31, 2011 Dec. 31, 2010 Dec. 31, 2009 Required Criteria
1.
Equity (EUR
50. 646.
602
46. 886.
155
46. 228.
371
Min. 10. 0 million euro
2.
Capital Adequacy Ratio – CAR
(Equity / Risk Bearing Assets)
45. 22%
54. 55%
57. 83%
Min. 12%
3.
Investments in Property & Equipment
and in Non-banking Equity
28. 45%
18. 79%
25. 24%
Max. 60% of capital
4.
Exposures to Bank Related Parties
3. 25%
2. 34%
7. 80%
Max. 20% of capital
5.
Great Exposures to Single Clients /
Groups of Related Clients
69. 49%
29. 32%
33. 20%
6.
Liquidity Ratio (L2)
5,75
4. 43
5. 97
7.
Foreign Exchange Risk Ratio
16. 02%
8. 31%
5,94%
Max . 400% of capital
Min. 1
Max. *10-20% of the Equity
*Dec. 31, . 2009 – 10%; Dec 31, 2010 & Dec. 31, 2011 – 20% of the Equity
56
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LOCAL PAYMENT OPERATIONS
In 2011, in the business environment seriously disturbed
by economic crisis, both globally and in Serbia, JUBMES banka
achieved 12. 85% increase of local payment operations volume
banka, thus at the end of 2011 there was total of 629
current RSD accounts of corporate clients. At the same
time, 40% of the new corporate clients opened foreign
Local payment operations executed by JUBMES banka in 2011 and 2010
(million dinars)
Structure
RTGS (Gross)
Clearing (Net)
Internal payment operations
Total
2011
Transactions Number
Turnover
Transactions Number
Turnover
21,995
69,500
23,067
59,900
202,851
4,200
196,102
4,300
48,879
27,300
49,696
25,300
273,725
101,000
268,865
89,500
and 1. 8% increase in transaction number, compared to the
previous year.
Predominant portion of local payments turnover – over
68. 8% was executed through RTGS system, 27. 0% through
the Bank’s internal payment operations (only affecting client’s
current accounts held with the Bank) and 4. 2% through the
clearing system. However, 73. 9% of the of transactions number
was executed through the clearing system, over 17. 8% through
the internal payment operations and only 8. 3% in real time,
through RTGS system.
In 2010 RSD cash payment operations were increased
compared to 2010, for over 4. 6% - from 1979 million dinars to
2070 million dinars, while the transactions number was also
increased for more than 40%.
It is very significant to mention that in spite of the crisis,
12% new corporate clients opened their accounts with JUBMES
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currency accounts too, entrusting to the Bank their
international payment operations.
In 2011, electronic banking share in dinar payment
operations continued to grow compared to the previous
years. Namely, 73% of the total number of payment
orders was executed through E-banking facility. In
2011 over 55% of all Bank’s corporative clients were Ebanking participants, compared to 49% in 2010.
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RETAIL BANKING OPERATIONS
As in few previous years, Bank’s retail banking operations
in 2011 included all traditional banking nad financial services
to individual clients, and specially:
• Raising funds from individuals in the form of savings,
dinar and foreign exchange deposits, special purpose
accounts for trade in bonds on foreign currency savings,
treasury bills and shares;
• Dinar and foreign exchange payment operations;
• Currency exchange operations;
• Personal clients’ current and gyro accounts keeping;
• Issuing of DinaCard - national debit ad credit cards, as
well as of VISA Electron and VISA Classic credit cards,
DinaCard Business cards, VISA Business cards as well as
Visa Virtuon card for Internet payments ;
• Retail lendings / extending short-term and long-term
loans to individuals, and
• Vault rental and other vault operations.
On December 5, 2011 the Law on the Protection of
Financial Services Consumers entered into force. The Bank
has harmonized its internal enactments with the Law.
Accounts Maintenance and Foreign Exchange Savings.
Dinar savings are raised through dinar sight deposits, time
saving deposits in dinars, special purpose deposits for share
purchase under privatization procedure, special purpose
accounts for the trade in shares and special purpose deposit
accounts for establishment of companies.
Total payments turnover under individuals’ current
accounts amounted to 1. 159 million dinars (585 million dinars
in 2010), and an average monthly turnover per account 136. 4 thousands dinars.
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Total foreign exchange savings amounted to 14. 04
million euro as of Dec. 31, 2011 (13. 1 million euro as of Dec.
31, 2010). During the previous year 562 new sight foreign
exchange saving accounts were opened, as well as 428 new
Foreign Exchange Savings,
as of Dec. 31, 2011 and Dec. 31, 2010
(euros)
Dec. 31, 2011 Dec. 31, 2010
325,540
208,659
2,355,271
2,201,040
Up to 3 months
1,233,206
1,417,445
From 3 tо 6 months
1,395,934
1,451,162
From 6 to 12 months
7,838,092
7,870,589
From 12 to 24 months
892,880
Special purpose foreign exchange accounts
Sight foreign exchange savings
Term foreign exchange savings deposits:
Total:
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14,040,923 13,148,895
saving term deposits amounting 8. 39 million euro.
Retail Banking Foreign Currency Cash Payments amd
Currency Exchange Operations. Foreign currency cash
turnover in 2011 amounted to 40. 37 million euro in dinar
conter-value of 4. 22 billion dinars (3. 20 billion dinars in the
period January-December 2010). The largest turnover was
recorded in euro – transactions volume for other currencis
was significantly smaller.
Total turnover of foreign currency cash under exchange
operations amounted to 304. 49 million dinars in dinar
counter-value (254. 7 million dinars in the period JanuaryDecember 2010). The largest turnover was recorded also
in euro – under both volume and number of transactions.
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Payment Cards. JUBMES banka offers to its clients debit
cards (DinaCard and Visa Electron), credit cards (DinaCard
credit and VISA Classic) and business cards c(DinaCard Business
and VISA Business) and VISA Virtuon card for Internet trade.
Total balance of credits approved through credit cards
reached 99. 5 million dinars as of Dec. 31, 2011, whereof 54.
87 million dinars under consumption on the reporting date.
In 2011 the Bank earned 12. 73 million dinars of total income
under interests, fees and commissions related to all cards,
while total expenditures amounted to 8. 69 million dinars.
Other Retail Operations. The Bank rents the vaults to
both individuals and companies. (927 out of 1236 vaults
were rented as of Dec. 31, 2011). The Bank also offers day
and night vault services, and ATM (Automatic Teller Machine)
services, with permanent increase of the operations volume
comparing to previous years.
Operations on Behalf of Third Parties. In 2001
Government of the Kingdom of Norway approved the
donation in amount of 2. 0 million DEM for the execution of
the irrigation equipment supply project for the Republic of
Serbia. In conformity with the Memorandum of understanding,
signed on April 17, 2002, between IMG Serbia, Federal
Ministry for International Economic Relations of the former
FRY (legal successor – Office of Economic Integrations)
and Agricultural Development Fund of the Autonomous
Province of Vojvodina, Novi Sad, the Revolving Fund was
established for financing of reconstruction and supply of the
irrigation equipment, as well as for other purposes related to
agricultural production. Until the end of the previous year
814 loans were realized through the Bank.
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Payment Operations
In 2011 the Bank executed total of 49510 foreign exchange
nostro remittances, while the accounts turnover amounted
to 425 million euro, being a 98. 07% growth compared to
the previous year. Large turnover increase is a result of the
growth of both payment orders volume and term deposits
volume with the foreign correspondent banks.
During 2011 the Bank effected 6457 payment orders in
foreign currency, whereof 3100 by order of legal entities, in
counter-value of 46. 6 million euro, being for around 16. 4%
more than in 2010. Most of orders are nostro remittances and
payments under nostro letters of credit related to payments
of goods and services of Bank’s corporative clients and
entrepreneurs. The lions share in turnovers growth however
goes to the Bank’s big corporate clients.
Through current accounts held with foreign correspondent
banks JUBMES banka a. d. executed 2627 collections in
amount of 42. 4 million euro, under collections of goods and
services coming from abroad belonging to entrepreneurs,
individuals, as well as under collections of repurchased
claims under loro letters of credit.
As in prevous years the Bank rendered its assistance
to clients interested for nostro and loro letters of credit
operations. The Bank enabled execution of payment
operations in total amount of 3. 3 million euro under nostro
letters of credit (opened by the Bank) and under loro letters
of credit (opened in favor of Bank’s clients).
In 2011, upon client’s request the Bank sold 33. 9 million
euro and bought from clients the total amount of 27,3 million
euro in foreign currency.
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International Financial Cooperation
In 2011 the Bank has continued the cooperation with
Cooperation with International Financial Institutions.
Beo-Export Australia PTY Ltd, Australian company on “My
In the course of 2011 the Bank gained intermediary status
Land” project related to servicing the retail payment orders.
for realisation of Apex Loan of the European Investment
This service takes the leading position on Australian market
Bank for Mid-caps (medium capitalization companies).
under money transfers of Serbian community in Australia
With this aim the Intermediary Agreement has been signed
in favor of individuals in Serbia and neighboring countries
with the National Bank of Serbia. Further to this, the Bank
– Macedonia and Montenegro. In 2011 total number of
submitted the funds allocation request for financing of an
remittances reached 6. 557, being an increase of 7. 19%
export oriented production plant construction. At the end
compared to 2010, while total turnover amounted to 2. 595.
of December 2011 NBS, in an Agent’s capacity, informed
000 euro, for 1. 07% more than in 2010.
the Bank that the Board for the Apex Loan for SME’s and
Cash payments in the total amount of approx. EUR
Mid-Caps Management decided to approve Bank’s funds
1. 176. 000 (in foreign currency or in RSD counter-value)
allocation request in amount of 10. 0 million euro for the
were effected over the Bank’s counter and thereby 3008
mentioned project financing.
beneficiaries were serviced.
The Bank has also taken a number of activities with aim
Transfers in favor of individual beneficiaries in Serbia
to define the conditions for obtaining funding from other
were executed owing to Bank’s successful cooperation with
international financial institutions which could support
OTP Bank a. d. Novi Sad, which effected 3206 remittances
execution of Bank’s business activities. For example contacts
in total amount of 1. 259. 000 euro through its banking
have been established with the Government of the Republic
network (and networks of other local banks).
of Italy (Development Cooperation) for Bank’s engagement
For individual beneficiaries from Macedonia and
under realisation of the new credit line for SME’s as well
Montenegro total of 343 remittances were serviced in total
as with IFC for a credit line for confirmation of L/Cs and
amount of EUR 160. 000 through the local banks network.
guarantees. After Italian Government had accepted JUBMES
banka to be one of the intermediary banks from Serbia for
realisation of the approved credit line, the Bank signed an
Intermediary Agreement with NBS. In conformity with the
intermediary’s duty, the Bank published on its website a
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presentation of the new Italian credit line, with details on
to Iraq (1984-1990), through the intermediary of the first rate
financial conditions and facilities. Bank’s client interested for
foreign custody bank. Collected funds were transferred to
this opportunity is currently preparing the project, eligible
accounts of claimants held with other banks.
for the credit line financing.
Collection of Commercial Claims from Highly Indebted
Countries. With aim to prepare the expert negotiations with
Apart from the collected principal, claimants received
also the interest under semi-annual maturities, collected by
JUBMES banka from the Republic of Iraq.
the Cuban party representatives, the Bank held a meeting
Bank’s relevant units present information to the Bank’s
with civil sector claimants and representatives of the Serbian
bodies and its legal representatives, courts, experts and
Government’s departments in charge. On this meeting the
other persons in charge for disputes related to administration
report on Bank’s activities taken under its mandate was
of commercial claims against Iraq and to creditor/debtor
approved and conclusions were adopted on forthcoming
relationship of companies engaged in business operations
activities to be taken by the Bank and others. In the mid 2011,
in Iraq. Relevant Bank’s units regularly monitor and present
on the basis of the information prepared by the Bank and
reports to and information on current prices of the bonds
representatives of the Serbian Government’s departments,
issued by the Republic of Iraq.
Serbian Diplomatic and Consular Representative Office
Correspondent Banking. The Bank exchanged SWIFT
in Havana presented the repeated request for the expert
codes under RMA model with almost 200 correspondent
negotiations to the highest representatives of the Cuban
banks, in conformity with requests of Bank’s units in charge
Government. At the end of year the Office held a meeting
and the current procedures.
with the representatives of the Banco Nacional de Cuba.
JUBMES banka regularly contacted the Banker’s Almanac, a
The Bank carries on with the activities on establishment
publisher providing “on line” presentation of the banking data,
of status of claims security instruments, with legal entities
with aim of regular up-dating information and documentation
keeping these instruments in custody.
on the Bank. Relevant Bank’s units enter on daliy basis the
Administration of Civil Sector Claims against Iraq.
Since 2002 the Bank has been executing administrative
Bankers Almanac data base in order to provide the data on
foreign banks.
services related to the civil sector claims against Iraq. In 2011
JUBMES banka a. d. maintains regular business contacts
the Bank continued to sell or transfer Iraqi bonds in its name
with leading foreign banks, primarily with the most important
and for the account and upon order of legal successors of
correspondents (keeping the accounts of JUBMES banka
commercial claimants under exports of goods and services
a. d. ), as well as with the international financial institutions
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interested for financing of international trade and financial
exporters engaged in these markets, in the course of 2011
support to corporative clients in Serbia. Regular correspondence
JUBMES banka established correspondent relationship with
is maintained with those banks, related to exchange of
some of the banks from this region.
information, control and other documents.
In conformity with the Agreement on Cooperation signed
Since the MAGREB countries are the markets of interest for
with Export Development Bank of Egypt (EDBE), Cairo on
Bank’s clients, adequate optimal models of cooperation with
November 8, 2010, in the beginning of 2011 JUBMES banka
similar institutions in those countries are currently considered.
opened a current account with this institution.
Owing to our long time experience in giving support to
MAJOR CORRESPONDENT BANKS
EUROPEAN UNION
BELGIUM
KBC Bank N. V. , Brussels
ITALY
Intesa SanPaolo S. p. A. , Milan
Nova ljubljanska banka d. d. , Trieste
GERMANY
Commerzbank AG, Frankfurt/Main
Deutsche Bank AG, Frankfurt/Main
OTHER COUNTRIES
АUSTRALIA
Commonwealth Bank of Australia, Sydney
SWITZERLAND
UBS AG, Zurich
USA
Deutsche Bank Trust Company Americas, New York
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Androsace olympica
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sicc/1874.
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MANAGEMENT
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MANAGING BOARD
CHAIRPERSON OF THE MANAGING BOARD
Mr. Mladen Sorajić, Ph. D.
MEMBERS OF THE MANAGING BOARD
Mr. Vladan Manić
Mr. Radovan Mijailović
Mrs. Branka Mijanović (independent)
Mr. Miroslav Paunović , Ph.D. (independent)
EXECUTIVE BOARD
PRESIDENT OF THE EXECUTIVE BOARD
Mr. Milan Stefanović
VICE-PRESIDENT
Mr. Slobodan Lečić
MEMBERS OF THE EXECUTIVE BOARD
Mrs. Biljana Milosavljević, Executive Director
Mrs. Jasna Čupić-Popović, Executive Director
Mr. Zlatko Hašimbegović, Executive Director
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ЈUBMES BANKA A. D. BEOGRAD - Organization Chart
Audit Committee
Bank Assembly
internal Audit Department
ASSETS AND LIABILITIES
MANAGEMENT COMMITTEE
Credit Committee
Managing
Board
Compliance department
Executive
Board
General Secretariat, Human
Resources and Development
CEO Office
Legal Department
Administrative Department
Branch
Payment Operations
and International
Cooperation
Division
Treasury and
Investment
Banking Division
Payment Operations
Department
Treasury
Department
International
Department
Broker-Dealer
Operations
Department
CoMmercial
Banking Division
Information and
Communication
Technologies
Division
Software
Corporate Banking Development
and
Department
Support Department
Retail Banking
Department
Risk Management,
Finance and Back
Office Division
Risk Management
Department
Systems and
Finance and Back
Communication
Office
Department
Support Department
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INFORMATION AND COMMUNICATION TECHNOLOGIES
In accordance with daily growth of business volume, legal
regulations, introduction of new products and services, business
automation and optimization and in conformity with the
Strategy on Information Technology System Development of
JUBMES banka, Information and Communication Technologies
System has been permanently monitored and advanced.
In 2011 the Bank carried out preparations for introduction
of the following standards: ISO 27000 Information Security
Management System (ISMS), ISO 9001 Quality Management
System (QMS) and ISO 14000 Environmental Management
System (EMS). Apart from this, the Bank has carried on with
active support to preparation of new solutions or adjustment
of already existing solutions, in accordance with activities for
implementation of Basel II recommendations. The Bank pays
special attention to keep its solutions in compliance with the
latest legal regulations as well as with all amendments of the
already existing regulations.
With respect to the communications and systems domain,
the main activity was introduction of Wireless network into
the Bank’s IT system. This project enables higher level of
accessibility and efficiency of access to Bank’s informationcommunication resources.
Introduction of Chip technology related to Visa cards
is one of the largest projects executed at the end of 2011.
The most important segments are related to:
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I. System and communication support;
II. Development, software support and data bases and
III. Electronic banking operations and card operations.
I. Adjustments, improvements and change of hardware
and software resources are permanently proposed,
projected and implemented. In this sense the following
operations were carried out in 2011:
• RSA Envision SIEM devices installation and configuration;
• “Production resources improvement” project was planned;
• Virtual infrastructure updating and extending;
• Storage capacity extension;
• Upgrade of Windows domain and Exchange Server
Platforms;
• Clear Screen policy implementation on Windows domain;
• SWIFT Alliance Access software migration/upgrade to
Version 7;
• Installation and configuration of the Server management
standardization project;
• Bank’s Conference hall audio visual capacity reconstruction;
• Microsoft Threat Management Gateway solution introduction
– Internet access, Web e-mail Access and Activesync.
Regular activities which have been carried out
permanently are: systems monitoring, regular and
extraordinary maintenance of all platforms (service/clients
and network) and support to users of Bank’s information
system.
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II. Development, software support and data bases are
an important segment of activities, enabling preparation of
the new application solutions in accordance with the legal
regulations and users requests as well as maintenance of
existing application software. Main directions of the software
development in 2011 are as follows:
• Active support to preparation of new solutions or
adjustment of existing ones in conformity with the
activities for implementation of Basel II recommendations;
• Claims purchase application up-grade and automation;
• New applications and reporting processes in conformity
with NBS regulations amendments;
• Building and customizing reports in conformity with
regulation amendments of the Deposit Insurance Agency;
• System design for integration with RiskGuard solution;
• Preparation of the new applications and customizing
of the existing ones, required by the Financial Services
Users Protection Law;
• Mbanking and new Home banking Web application
have been introduced to facilitate payment operations
of individual clients;
• System enabling connection with Business Register’s
Agency and automatic synchronisation of data and
creating reports and processes required by the law.
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III. Electronic banking operations comprise electronic
services continuously rendered to Bank’s clients in the form
of E-banking service - to legal entities, Home banking - to
individuals and card operations administration.
Card operations administration and operations related
to maintenance of ATM machines and POS terminals have
been performed permanently. Project of migration to EMU
– chip technology for all three types of VISA cards (Electron,
Classic and Business) has been carried out, resulting in higher
level of safety and security of VISA cards utilisation.
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COMPLIANCE FUNCTION
Bank’s Compliance Department, in charge for monitoring
operational compliance, performs three principal groups of
activities:
• Money laundering and terrorism financing prevention;
• C
ompliance operations
• Compliance risk assessment
Large segment of Bank’s activities in this area is governed
by the Law on Prevention of Money Laundering and Terrorism
Financing. In the course of 2011 significant advance of the
system for automatic checking and linking transactions under
various criteria has been carried out, enabling acceleration and
improvement of the authorized persons operations related
to prevention of money laundering and terrorism financing.
In 2011 the Compliance Department provided the
Executive Board with monthly reports on control over Bank’s
operations, carried out by the authorized person as well as
on the Law, legal regulations and internal rules observation
by the Bank’s employees engaged in operations related to
prevention of money laundering and terrorism financing.
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In previous years the system of adequate and efficient
compliance control of Bank’s operations was established and
developed. In the course of 2011 the Compliance Department
updated internal enactments required by the Law and legal
regulations related to the operational compliance monitoring.
In 2011 the employees training was carried out in
conformity with the Annual program of professional education
of employees engaged in operations related to prevention
of money laundering and terrorism financing.
In conformity with the Methodology for assessment and
monitoring of the Bank’s operational compliance risk, the
Compliance Department executed the self-assessment of the
compliance risk occurrence probability. The risk probability
was ranked in the range from very small to medium in the
Report on the risks compliance with risk management plans,
accepted by the Executive Board.
REPORT ON CORPORATE
SOCIAL RESPONSIBILITY
ACTIVITIES
REPORT ON
CORPORATE
SOCIAL
RESPONSIBILITY
ACTIVITIES
June 2012
REP
ON COR
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Dear colleagues and friends,
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t is our pleasure to present you hereby
our first Report on Corporative Social Responsibility Activities, which includes activities of JUBMES banka a.d. Beograd in the
year of 2011. This Report was prepared with
aim to illustrate our development and proactive role aimed at promotion of the CSR
concept.
We are proud to point out that JUBMES
banka, while gradually advancing through
its development phases, has always held
the position of both highly competitive
and socially responsible business entity,
which plans its development business targets in synergic relationship with progress
of local and wider social community.
Although the global economic crisis
has aggravated strategic targets achievement of many entities active in the national, regional and global financial community, JUBMES banka decided to keep
on with an active promotion of the fundamental principles of corporative social responsibility, sustainable development and
healthy business executed through cooperation with the employees, local and wider social communities. We are convinced
that each anti-crisis strategy should promote responsible business as the fundamental element of the healthy and open
economy, being an important impetus for
the crisis overcoming as well as for the EU
integration processes, both present and future.
Pro-active relation towards this new
business concept is reflected in Bank’s dedication to incorporate Global Compact prin-
3
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SOCIALRESP
ciples into its business policies and rules, especially the segments of human rights protection, environmental protection and anticorruption combat. Membership in the UN
Global Compact gave especial impetus to
JUBMES banka for a more creative and active
access to the community’s economic and
development goals which are harmonized
with the agenda for EU accession, as well as
to regional and global projects for the sustainable development support. In this sense
we carry on with giving active support to initiatives and activities of the national, regional and global UN Global Compact networks,
which promote universal values as human
rights and liberties, democracy, peace and
sustainable development.
Human rights (including social and politic rights) threats risk management, environmental risk management, as well as the
corruption risk management should support the development of correlative relations between corporate business targets
and the sustainable development concept.
Since sustainable development is conditioned not only by social and ecological, but
also by economic factors, not only governments and civil sector are responsible for
giving support to the sustainable development, but also the business community.
We have the pleasure to carry on with
the development of pro-active coopera-
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tion with internal and external stakeholders,
to improve the practice of regularly providing the relevant information to all interested groups as well as to initiate the dialogue
with employees on various issues related to
corporative social responsibility principles.
We take innovative attitude towards the
implementation of the fundamental CSR
principles through various forms of cooperation with non-profit organizations (nongovernmental humanitarian organizations,
sport organizations, cultural and health institutions etc). We are proud to point out our
support rendered to the “Child’s Heart” Foundation (the Bank was its founder in 1992 and
the major donor) in belief that only healthy
population may give its full contribution to
the sustainable growth.
The Bank pays a lot attention to perma-
PONSIBILITY
CTIVITIES
nent education of its employees, related to
modern banking operations and responsible business principles as well as to improvement of the employees’ safety culture and
introduction of the most modern technical
and safe working conditions.
In 2011 the Bank gave much significance
to further promotion of the human rights,
especially to the inclusion of the minority
groups and socially jeopardized groups in
the community. Let us emphasize Bank’s cooperation with the referent national institution for accommodation of autistic children,
youth and elderly persons in Belgrade. Inclusion of these categories of people in the
community should be considered as one of
prerequisites of sustainable growth.
JUBMES banka, as the first member of
the UN Global Compact in Serbia, signed
the Declaration on Anti-Corruption Combat, prepared by the Global Compact Serbian network, requiring timely reporting related to Global Compact’s 10th principle (anticorruption combat). With this aim the Bank
adopted the set of documents, being an integral Anti-Corruption Program for implementation of anti-corruption policy. Thus
the Bank was enabled to fulfil the obligations undertaken by signing the Declaration.
Observation of the socially responsible
business has been our long-term strategic
business orientation. External and internal
support to these principles laid a foundation
of the business culture and philosophy. Only
by taking developmental and evolutive attitude towards implementation of the Global Compact principles as well as by expending the range of activities aimed at the principles promotions, the Bank creates necessary pre-conditions for achieving the targeted competitive position within the local and
regional financial sectors, as well as for giving more active contribution to all phases of
the EU accession process.
Yours faithfully,
Milan Stefanović
President of the Executive Board
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Introductory
Remarks
S
ustainable development, as
a long-term and synergy
process, includes economic,
social and ecological aspects
of life. Three sustainable development pillars – economic
sustainability, social cohesion
and environment protection
have to be balanced, which requires long-term inter-sector cooperation.
Taking its strategic orientation towards CSR concept, JUBMES banka
continued to improve its activities aimed at implementation of human
rights protection, labour standards protection, environment protection
and combat against corruption, including adoption and improvement of
internal enactments – internal rules.
In the course of 2011, with aim to implement ISO standards applicable in financial sector, Bank’s managing team adopted three principal
policies: Quality Policy, Information Safety Policy and Environment Protection Policy. Bank’s synthetic attitude towards implementation of these
policies and an active promotion of UN Global Compact principles contribute to further advance of the socially responsible business concept.
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Our affirmative attitude towards responsible business principles is reflected also in Bank’s engagement in financial realisation of the credit lines granted by the EU development bank and one of the EU member countries, requiring observation of certain social and ecological criteria as one of the prerequisites for the project eligibility.
Integral implementation of the Global Compact principles does not comprehend only realization of the agreed initiatives and activities within the sector and on inter-sector field, but also undertaking of the innovative autonomous actions aimed at promotion of the principles and values being fundamental for the sustainable development.
Through relations established with various interest groups from the both
public and non-governmental sector, the Bank contributes to implementa-
tion of the National Strategy for Sustainable Development, which is harmonized with the principal aims of the European integration process, being creation of a competitive and knowledge based economy and the social cohesion society.

JUBMES banka’s business and development strategies are based on the
creative relation between its profiling as an successful, highly ranked financial
organisation and promotion of the concept of corporative social responsibility i.e. sustainable development.
7
Human
Companies
should support
and respect the
protection of
internationally
proclaimed
human rights
Global Compact Principle I
8
E
thically committed companies, addicted to human rights observation, gradually become main subjects creating a healthy
and competitive business environment. Adoption of the new strategic and long-term management concept – socially responsible
business, enables socially responsible companies to promptly react at social and ecological problems and participate in the “sustainable development”.
The success of the new business model (incorporating the segment of human rights protection), requires cooperation developed
with external and internal interest groups, participating in new values creation, being the base of the modern corporative culture.
Being actively engaged within the Working group for the extraordinary events support with the Global Compact in Serbia network, we continued to render our assistance to the region of Kraljevo town, hit by the earthquake at the end of 2010. Upon the request of “Stefan Prvovenčani” public library in Kraljevo, we donated
the computer equipment and participated in the Network’s action
of collecting books for this library and its regional branches.
In conformity with our strategic attitude, we continued with
the education of our employees through presentations on various
forms of socially responsible business, including human rights and
freedoms protection aspects. Special attention was paid again to
the gender equality and inclusion of disabled persons in the community’s social life on every level.
Also, special attention was also paid to the cultural heritage
protection and its relations with sustainable development.
Rights
With aim of gaining new knowledge and good practices exchange in the
field of CSR, JUBMES banka in the previous year started with the practice of encouraging and enabling its employees in charge for affirmation of the concept
to attend international courses organized by respected institutions.
New responsible business model, which respects human rights principles, introduces the adequate CSR segment management, i.e. optimal risk management in social
(including human rights risk) and ecological fields.
Apart from this, JUBMES banka has continued to improve the human rights support system, especially system
of health protection and employees safety, through regular courses for professional improvement of employees
in domain of labour health and fire protection, as well as
through employees’ knowledge evaluation. JUBMES banka
has continued to improve its internal enactments on appraising risk at labour location and environment together
with the company specialized for labour safety and health
and environment protection. In 2011 the By-Law on rights,
obligations and responsibilities related to safety and health at work was adopted. This document establishes working conditions standards mostly focused at
diminishing risk of injury at work or professional illnesses and diseases, establishes technical, ergonomic, health, educational, social, organisational and other measures and means for prevention or elimination of the risk of injury and
employees’ health damage.
JUBMES banka has also provided the free systematic medical examination
and medical experts service under preferable conditions for all Bank’s employees and their family members. Having in mind importance of economic and
social rights protection, in conformity with the financial potentials the Bank
takes care of retired employees, as well as of needs of employees and their family members, especially in case of illnesses or other irregular events..
„Stefan
Prvovenčani“
Public Library,
Kraljevo
9
Human
Resources
Management
Policy Aimed at
Promotion of
Socially
Responsible
Business
H
uman resources management policy is a very important segment of the socially responsible business.
According to its business and development orientation, JUBMES banka has carried on
to improve its employment policy and encouraged the permanent education process of
employees, contributing to the fulfilment of the Bank’s strategic targets. The Bank regularly evaluates the working results of employees in conformity with modern standards and
policy of human resources management, striving to improve the employees’ qualification
structure, by employing prevalently young, highly educated persons, capable to apply
new skills and offer innovative solutions in banking operations.
The Bank continued to improve the policy of enabling the employees to attend various types of post graduate studies and courses related to modern banking operations,
including participation in local and international financial meetings and forums dedicated to banking products and services development issues, implementation of the Basel III
10
new agreement on capital requirements, deposit insurance models etc.
Special attention is paid to education of experts in the information technology field, focused at E-banking and information technology safety.
In conformity with the Bank’s human rights policy, employees are
encouraged to take additional education and professional training related to prevention of money laundering and anti-corruption combat,
aimed at upgrading the employees’ consciousness of the importance of
ethical principles in conduction of business operations, which promotes
zero tolerance against breaching the guaranteed economic, social, civil and other rights related to Bank’s business operations. With this aim
the Bank’s representative officer responsible for cooperation with the
UN global Compact Network attended the International Corporate Social Responsibility Autumn School, held in November 2011 in organisation of Erasmus University, Rotterdam, which elaborated the responsible
business model, including adequate management related to corporative social responsibility as well as optimal execution of investments implementing ISO standard 26000 – social responsibility..
Companies
should make
sure that
they are not
complicit
in human
rights abuses
Global Compact
Principle II
11
Аffirmation and Protection of
National Cultural Heritage
A
ffirmation of non-material and material heritage is a significant pre-condition for preservation and promotion of the national cultural identity i.e. national culture open for dialogue and interaction with other cultures. On these premises, the Bank has continued to
support various projects organized by local authorities, as well as the projects executed by
a number of humanitarian, religious, scientific, educational, cultural and sport institutions.
To a number of schools in the AP of Kosovo and Metohija the Bank donated valuable
three-volume sets of books about major scientific, artists and other famous historical persons important for affirmation of the Serbian nation and country statehood, as the additional literature necessary for the mother language lectures, history, art etc.
The Bank made the contribution to the Holy Žiča Monastery, which was damaged by
the earthquake in November 2010. It was built in 13th century together with the Church
Holy
Žiča
Monastery
12
of the Holy Resurrection, by Stefan
Prvovenčani, the first king of Serbia. Owing to its representative old fresco paintings, the Monastery is placed under special protection of the Republic of Serbia,
being categorized as a cultural monument of an extraordinary significance.
I
n the course of the last year the Bank
continued to develop cooperation
with representatives of the Serbian
community in Australia, supporting finalization of the project of construction
of Serbian Orthodox Church College “St
Sava” in Sydney, which will be the first
Serbian official educational institution
in Australia and the first such institution
abroad.
The Bank carries on to support
“Ćirilica” citizen’s association,
dedicated to prevention of
ćirilica – an authentic Serbian
alphabet, which has been in
use for ten centuries.
Serbian Orthodox Church College „St. Sava“
– under construction, Sydney, Australia
13
Investments
B
usiness world has the responsibility not only to protect human rights,
established by international universal and regional documents and
adopted standards, but also to provide conditions within their business
operations that would prevent any complicity in these rights abuse.
In this way business entities can significantly contribute to creation of
healthy business environment on national and international levels.
Socially acceptable business includes preventive actions purposed
to eliminate human rights abuse. Therefore, each business entity, according to its operation profile, should take adequate preventive measPresident of the
ures to ensure human rights observation in its business operations perExecutive Board of
formance.
JUBMES banka
The Bank, as a socially responsible subject, considers not only ecodelivering an
incubator to Užice
nomic parameters of project justifiability, but also their impact on soGeneral Hospital
cial environment. In this manner the Bank also develops active cooperation relationship among all interested groups. We are of the opinion that
only through close cooperation with
our clients – exporters, engaged specially on infrastructural projects, preconditions for prevention of human
rights abuse can be assured.
JUBMES banka accepted the invitation addressed to Serbian financial institutions and took participation in supporting organisation of
the “Goodwill Forehand” humanitarian tournament, organized by Partizan Tennis Club from Belgrade, with
The Bank also joined the “Battle for Babies”, a nation- aim to raise funds for the Institute for
wide action initiated by B92 Foundation, which is fo- Neonatology, Belgrade.
cused at raising funds for several incubators for premaThe Bank continues to intensively
support
various projects affirming
turely born babies. In our opinion only healthy newborns
healthy society, human rights, solimay develop a healthy population, and, only healthy
darity, corporate citizenship, disabled
population may provide for the social progress.
14
for the Future
persons inclusion in society, sport spirit etc. By implementation of the Global Compact Second Principle, the Bank pays contribution to development of the inclusive society, rich in social cohesion, with the business sector becoming an active
promoter of human rights and liberties, preventing guaranteed rights
and liberties abuse.
D
uring last year, the Bank participated in the “Belgrade Baby
Çlub” project launched by the City of Belgrade, which is carried out by handing baby parcels to families with new born babies
i.e. for all newborns on the territory of Belgrade.
A
part from the actions mentioned above, we
would emphasize our support extended in
many previous years to Knowledge for Tomorrow
- Diplomatic Open Heart Action, which has been supported by Serbian governmental institutions as well. The Action is aimed at inclusion of members of socially jeopardized groups into the world of informative technologies and their training for using such technologies. Thus acquired knowledge and experience will create prereq„Knowledge for Tomorrow uisites for their employment and thereby to their inclusion into so- Diplomatic Open Heart Action“
ciety.
– PC training
W
Serbian
Blind
People
Association
ith purpose to promote the inclusion society, we
have supported the action of the Serbian Blind
People Association and Faculty of Technological Sciences, Novi Sad, for the development of the automatic text
to synthesized speech transformation software, being an
important facility for blind and weak-eyed persons. The
advanced software version, providing readability of any
text in Serbian language, is compatible with all new versions of the MS Windows operative systems.
Text to
synthesized speech
transformation
15
OurSerbia
O
Our Serbia
– „School of
Friendship“
16
ur Serbia is a non-governmental organisation established in 2000, with aim to render aid and protection to children. Its programs for material and psycho-social support are related to thousands of children and youth. This organisation encourages the
children to preserve national identity, Serbian language,
religion, culture, customs and tradition as well as to have
sympathy, respect and understanding for other nations
and cultures. It gathers together people of good will regardless the religion, nation, profession and other distinctions. Our Serbia aims to help improvement of life
conditions, education, social and health protection of
children and youth, to encourage creativity in children
and values as benevolence, friendship, solidarity, tolerance and team spirit.
Our Serbia has also launched “Serbian Code”- a cultural and educational project aimed to help creating a
unique cultural and spiritual area for Serbian people u
neighbouring countries. This project will encourage
new ventures arising from fields of education, popular
science, pop-culture, and enable better understanding
of Serbian cultural and national identity and its relation
to Balkans, European and World environment.
Let us point out the “School of Friendship” - a project for psycho-social support which includes all activities of Our Serbia. Every summer it gathers children in
educational and sport workshops. This year the School
of Friendship shall have 800 attendants from Serbia and the Region, and will be held
from July 1 to August 10, 2012 in the Tara mountain.
Understanding the significance of activities of Our Serbia organization, JUBMES
banka has supported its various projects and activities. Thus, the Bank has supported
the School of Friendship project and “Parks of Friendship” action (building school playgrounds in less developed regions of Serbia). In the few previous years the Foundation
issued the New Year / Christmas greeting cards designed by children, which JUBMES
banka bought-up in order to congratulate the holidays to its business partners. Funds
collected thereby shall be spent for the support of humanitarian projects to come. Upon
Organization’s initiative the Bank awarded one year scholarship to a gifted student coming from Priština, AP Kosovo and Metohija. The Bank has provided number of personal
computers, which shall enable more efficient acting of the Foundation throughout the
territory of Serbia
Centre for children and
youth suffering from autism
C
entre for children and youth suffering from autism is a social protection institution of the Republic of Serbia, which provides accommodation, nutrition, protection, care and comprehensive
treatment to the children and youth suffering from autism.
The Centre has been active since 1991. It is designed to accommodate 42 young patients, but due to the actual requirements it renders accommodation to 48 at present.
Children are classified in 7 categories – by age, clinical picture and abilities. Children eligible to be received in
the Centre need to have over 10 years of age, but at present age of majority is over 20. Children are divided by age
(younger and older) in separate blocks - sleeping rooms.
The Centre has a kitchen, laundry room and yard with the
park and benches.
Ten defectologists, therapists, caretakers and a physical education
teacher are engaged to help children. Health care is rendered by a general medicine doctor, psychiatrist and twelve nurses.
Various occupations and activities are at children’s disposal. Activities
are organized with aim to develop individual and group engagement, as
working or physical activities. They are implemented both in open space
and indoors. Visiting various exhibitions, performances and competitions,
going on excursions, to swimming pools and downtown are organized
from time to time. The Centre has a well equipped sensor room, which is
of great use for the patients.
Highly appreciating the Centre as a one of a kind institution in the Republic of Serbia, JUBMES banka has given its support to it for a number of
years. In order to meet its needs, JUBMES banka has donated a computer
equipment and necessary furniture to the Centre.
Centre for
children and
youth suffering
from autism,
Zemun - Beograd
Centre for children
and youth suffering
from autism –
sensor room
17
An example for the long-term cooperation
established with a non-profit institution:
“Child’s
Heart“
Humanitarion
Foundation
A
t the end of 1992, with the support of JUBMES banka, the „Child‘s Heart“
Humanitarian Foundation was established on the initiative of the Pediatric Cardiothoracic Team of the “Dr Vukan Čupić” Mother and Child Health
Institute, Novi Beograd. The Foundation’s seed is at JUBMES banka Head Office
address. This year will be marked by the 20 years jubilee of the Organization’s activities.
The aim of the Foundation is to obtain donations and aid for the improvement of conditions for the surgical treatment and rehabilitation of children suffering from congenital heart defects, for the necessary medical equipment and
materials, as well as for education in the field of pediatric cardiothoracic surgery
and programs for the adequate prevention and medical research.
Vital
functions
invasive
monitoring
device
The Foundation‘s Managing Board consists of the representatives of JUBMES
banka a.d. Beograd and the “Dr Vukan Čupić” Mother And Child Health Institute,
as well as of the representatives of respected Serbian companies – clients of JUBMES
banka: Farmakom MB Koncern d.o.o.,
Šabac and Beohemija d.o.o., Beograd, being significant supporters of the Foundation.
The Pediatric Cardiothoracic Team of
Mother And Child Health Institute is capable of performing surgical intervention
18
heart surgery (especially open heart) on children 0-16 years of age. Surgical interventions have been performed on newborn babies within the first days of
their lives and according to Institute‘s statistics the smallest baby weighed as little as 2.3 kilograms. However, to keep on with implementation of such demanding surgical interventions, the Team needs to be supplied with medical equip-
ment, drugs, medicines and medical materials, which have to be imported.
In order to provide the necessary supplies and wishing to bring Cardiothoracic Surgery in Serbia closer to the world standards, the Foundation is striving
to find sources for additional funds and donations. Devices such as monitors for
invasive monitoring of vital functions, respirators for ventilar support, cardiovascular supersonic diagnostics equipment, blood saving device etc. are necessary
so that the Pediatric Cardiothoracic Team can perform the much needed surgical interventions.
„Dr Vukan
Čupić“ Institute,
Novi Beograd Beograd
Let it be pointed out that an ECG device, instruments for surgery interventions and medical magnifying glasses were purchased and delivered to the
Pediatric Cardiothoracic Team of Mother And Child Health Institute in the previous two years. Let us also emphasize the Bank’s engagement on raising funds
for the purchase of ELECTA-DIDECO machine for intra-operative blood saving,
under the action organized by the Foundation.
19
We also
promote the
significance of
sport, positive
competitive
spirit and
healthy life
especially,
with the youth
which should
direct their
energy towards
the values
of a healthy,
inclusive
society, a
society open
to dialogue,
cooperation
and solidarity.
Serbian water
polo national
team, World
Vice Champions,
Shanghai – PR of
China, 2011
20
Waterpolo
Association of Serbia
W
ater polo association of Serbia is one of the most successful sport organisations in
Serbia. Under the name of Serbia on the world water-polo map it is inscribed:
Champions.... winners of the Water polo World League, World Cup, best on Mediterranean Games, won bronze medal on the Olympic Games, gold medalists on European Water polo championship, at the Universities Water polo Championship. Everywhere the
name of Serbia is related to water polo, owing to excellent couches and complete headquarters, extraordinary players, clubs eager for new victories, fans following and cheering teams everywhere and the Association as the main pillar of the achieved success.
Serbian water polo teams are not only the Serbian pride, but pearl of the sport in
the Region as well. For years they hold the flattering title of the best national team, given by the Olympic Committee of Serbia...
If Serbian water polo had to be described in only one word, it would be SUCCESS!
Let it be remembered that many Serbian aces and couches gave their un-erasa-
ble seal to successes achieved by Yugoslav and Serbian-Montenegrin teams. Today success is maintained, but only on the smaller territory. Serbian water polo is famous and
respected, preserving its long time spirit, keeping it for many years on the water polo
heights.
JUBMES banka has actively supported Water polo Association of Serbia since the
year 2002. Since then, the Association won over 20 medals at the Olympic Games and
regional or world championships.
After Serbian team had won gold medal on 2012 European Water Polo Championship in the Netherlands, the Bank agreed with the Association to render the financial
support necessary for the Team’s preparations for the forthcoming Olympic Games in
London.
Labour
Standards
B
y observing the labour right, having the most significant economicsocial character, the Bank supports the social cohesion, as an important pillar of the sustainable development concept. Social cohesion is
the precondition for development of the democratic, prosperous, stable
society and the labour right implementation makes realisation of the social justice possible, as an important peace and safety factor on national, regional and global level.
JUBMES banka, both through its enactments and practice, fully recognizes the freedom of association and the right to collective bargaining. Constitutional and legal regulations related to freedom of association are being observed and the Union of Financial Organizations of Serbia acts as autonomous, democratic and independent employee’s voluntary association, with aim to represent, improve and protect professional, economic and other rights of employees.
Almost all Bank’s employees are members of the Bank’s Union, which
is associated into the Union of Financial Organizations of Serbia. This Union holds a representative status within the plural structure of the union
organizations of Serbia.
Bank’s Union actively participates in humanitarian actions created
independently or organized by the Union of Financial Organizations.
The Bank’s Union participates in preparation of the Collective Bargaining Agreement, regulating the rights, obligations and responsibilities
arising from the labour relations as well as mutual relations of the Collective Agreement parties. During the negotiations with Bank’s Managing Team, the Union representatives present their proposals and suggestions. Union’s operations are transparent and include each member’s
activities.
Companies
should uphold
the freedom of
association and
the effective
recognition
of the right
to collective
bargaining
Global Compact
Principle III
Fundamental precondition for effective realization of the labour
right is elimination of compulsory labour and abolition of child’s labour.
21
Elimination
of all forms
of forced and
compulsory
labour
Effective
abolition of
child’s labour
Global Compact
Principles IV and V
By paying respect to the legal regulations in force and internal enactments
which implement the mentioned Global Compact principles, JUBMES banka confirms its attitude towards the social justice and social cohesion values.
With this aim the bank’s employees are regularly informed on the ratified international legal documents, in concern with compulsory labour and child’s
labour prevention.
By observing legal regulations in force and its enactments, JUBMES banka implements this Principle in practice. Direct or indirect discrimination of
the persons seeking employment is prohibited, in concern with the gender,
race, skin colour, age, health condition i.e. disability, nationality, religion, matrimonial status, political or other beliefs, social origin etc. Discrimination is
also prohibited in respect of employment conditions and candidate choice,
working conditions and all rights arising from the labour relationship, education, professional training etc.
JUBMES banka is affirming its positive relation to employment of disabled persons and takes participation in actions supporting their employment in various industries.
JUBMES banka – Bank’s Union – excursion
Elimination of
discrimination
in respect of
employment
and occupation
Global Compact
Principle VI
22
Environment
B
ank is also engaged in protection of environment
i.e. integration of ecological principles into corporate activities. Healthy environment and rational use of natural resources are an important prerequisite for promotion of responsible business, which
does not divide economic competitiveness from observation of ecological standards. In the present period of European Integration process, business entities
must not act as “isolated islands”, not concerned for
environmental impact of their activities, but have to
adopt rules focused at environmental protection, resulting from implementation of international standards, local regulations and other legal provisions related to environmental issues.
Within its activities which directly contribute to
environmental protection, JUBMES banka implements plans and programs related to defining climate conditioning regime and the use of Freon
gas, recycling of used batteries, usage of facsimile
machines, copy machines and printers, toners and
cartridges, reduction in consumption of office paper and waste office paper management, altering
technologically outdated and damaged electronic
equipment and electric and electronic waste management, glass package, PET package and cans man-
„Let’s Clean Serbia“ Action – the logo
23
Companies should
take precaution
measures related
to preservation of
environment
Companies
should undertake
initiatives to
promote greater
environmental
responsibility
Encouraging the
development
and diffusion of
environmentally
friendly
technologies
Global Compact Principles VII,
VIII and IX
Let’s Clean Serbia – Message of
motivation
(„Volunteer for the participation in
big cleanup of Serbia“)
24
agement and recycling, reducing consumption of drinking water, reducing electricity consumption as well as maintenance of
lights and diesel aggregates, dangerous materials storing etc.
The precondition for sustainable development is a rational
and responsible utilisation of non-renewable natural resources
and goods. In conformity with the National Sustainable Development Strategy, the environment protection policy became
an integral part of sector policies which includes business entities from real and financial sectors. In accordance with its capacities, the Bank promotes sustainable utilisation of natural resources and cooperates with the Ministry of Environment and
Spatial Planning, Agency for Environment Protection and other
institutions from governmental and non-government sectors,
which are relevant for protection of the environment under the
implementation of projects focused at sustainable utilisation of
natural resources.
Pursuant to the National Sustainable Development Strategy and the Waste Management Strategy, in 2009 the Ministry of
Environment and Spatial Planning launched the action entitled
“Let’s Clean Serbia”.
One of its main targets is separation of paper from the waste
for the recycling purposes. JUBMES banka in cooperation with
the authorized company has been buying cardboard boxes for
collection of office paper waste and distributing them to its clients, partners and institutions from non-profit sector in the Belgrade municipality. This action has been included in Bank’s Environment Protection Program as a permanent activity.
Cooperation with “Uvac”
Special Natural Reserve
U
pon recommendation of the Ministry of Environment and Spatial Planning, the
Bank established cooperation with “Uvac” - Special Nature Reserve d.o.o. Nova
Varoš and “Beloglavi Sup” Birds of Prey Protection Fund, operating within the Reserve.
The Uvac
river gorge
- meanders
The Uvac river gorge with the meanders and three lakes (Uvac, Zlatar and Radoinje Lakes) is one of the jewels of the untouched nature at the south-west of Serbia, the
oasis of natural beauty and unique biodiversity. The area is very rich in numerous examples of various karst formations including the longest cave system in Serbia. This is
the most important habitat of Griffon Vulture.
Griffon Vulture (Gyps Fulvus) is a rare species of the vulture eagle. In the past this
species inhabited wide areas in west Serbia, but in the middle of the 20th century
it deserted all habitats due to industrialization process. However, owing to efforts of
25
the “Uvac” - Special Nature Reserve and funds collected from local and
foreign authorities and non-governmental organisations, reintroduction
of the Griffon Vulture in this area became true. In accordance with the
agreement reached with the Management of the Reserve, JUBMES banka
took the responsibility to finance the fuel necessary for Reserve’s vehicles
which carry the slaughter waste to the vulture’s feeding places. Due to
still unsufficient animal population and lack of dead animals in this area
this is the only possible way of providing food to vultures.
Griffon
Vulture (Gyps
Fulvus)
26
Apart from the Griffon Vulture this area is also known for the only
goosander (Mergus Merganser) nesting site in Serbia, as well as for around
100 various bird species, 11 fish species and over 200 plant species (flora taxa) proving the very rich area biodiversity. In long-term the Reserve
plans to reintroduct other species, which deserted the surrounding (lynx
and other eagle species). However, for this action huge support is needed, significantly exceeding presently disposable funds as well as cooperation with governments willing to export these rare species to Serbia.
Anti -corruption
Combat
JUBMES
banka, being an active member of the Global Compact
Serbia, is engaged to render maximum contribution to
elimination i.e. minimizing of corruption and its extremely negative impact both
on politic and economic aspects. All business entities, striving to be internationally
competitive and respectable, have to integrate CSR principles (especially 10th
principle, related to anti-corruption combat) within their business activities.
The Bank actively promotes such platform which is synergically connected
to all targets defined by the European integration process. Implementation of
the concept of healthy and open business, which includes business ethics and
prevents corruption and bribery in any form, is one of the important conditions
for the Republic of Serbia to obtain candidate status and membership in EU. Being aware of this, members of the Global Compact Serbia have prepared the Anti
Corruption Combat Declaration.
We are proud to point out that JUBMES banka was the first among members of the UN Global Compact Serbia to sign this document, which defines the
duty of all members to observe the highest standards and activities in combat
against corruption, as well as their duty to prepare regular Reports on adopted
actions and measures related to anti-corruption combat, in accordance with the
recommendation for implementation of the Global Compact directives on reporting on the 10th principle of the corporative social responsibility – anti-corruption combat.
With aim to enable the most effective implementation of the Declaration, at
the end of 2011 the Bank adopted the Codex for Anti-Corruption combat and
Prevention of the Interest Collision, as an integral, fundamental document. The
Codex is referring to Bank’s basic enactments dedicated to prevention of employees’ corruption deeds, which define corruptive behaviour indicators.
The Codex elaborates the set of the following documents adopted by the
Bank, showing possible forms of authority abuse:
a) Business Ethics Codex (ethical norms governing behavior of the professionals)
b) Code of Professional Banking Conduct and
c) Rules for reputation risk identification, measuring, mitigation and monitoring.
Companies
should
work
against
corruption
in all its
forms, at
all levels,
including
extortion
and bribery
Global Compact
Principle X
27
JUBMES bankа
a.d. Beograd
– First to Sign
the Anticorruption
Combat
Declaration
There is no
profession
without
ethics, neither
is ethic
sustainable
without
professional
behavior.
28
Business Ethics Codex depicts the relation between vocation
and ethical behavior. There is no profession without ethics, neither is ethic sustainable without professional behavior.
The key enactment, promoting general ethical principles and
professional behaviour norms, is the Code of Professional Banking Conduct, which was prepared by the Association of Serbian
Banks. This is a comprehensive document, which integrates general ethical principles and professional banking behavior norms.
It is related to all employees of banks and their business relationship with clients.
The Codex for Anti-Corruption combat and Prevention of
the Interest Collision emphasize the duty of Bank’s employees to
protect the property of Bank’s clients and the Bank. It means that
professional post of the employee must not be abused in order
of private interest.
The following indicators show manifestations of corruption
caused by Bank’s employees’ behavior:
a) Banking business secret disclosing
b) Privileged information disclosing
c) Collision of interest
d) Employee’s private arrangements with clients
e) Goods and services procurement and selling
In order to enable prevention of corruption deeds as authority abuse or disclosing data on Bank’s employees or clients, sanctions are stipulated, as for the worst violations of labour duties.
The Codex includes measures and activities for the most
efficient implementation of the Anti-Corruption Declaration.
JUBMES banka , being the first member of the UN Global Compact Serbia, prepared the first Report on adopted enactments
and measures related combat against corruption. Upon recommendation of the chairman of the Anti-Corruption Combat
Working Group of the UN Global Compact Serbia, this Report
shall be presented at the Corporate Sustainability Forum at the
occasion of the Rio+20 Conference, to be held in June 2012 in
Rio de Janeiro, Brasil.
All these activities have for the mutual goal to enable developing of the high level of anti-corruption culture and satisfying
the standards determined by the National Agenda for EU accession.
PROGRESS OF SOCIALLY RESPONSIBLE
BUSINESS CONDUCTING – PERMANENT
ORIENTATION OF JUBMES BANKA
M
id-term and long-term sustainability of the competitive and respectable position of JUBMES banka in local and regional banking/financing sectors, is affirmed by
rendering wide range of modern products and services,
primarily focused at corporate customers, shall be provided through development of the new concept of the integrated quality management including application of adequate standards ISO 9001, 14001 and 27001.
Development of diversified activities, related to implementation of Global Compact
principles are proving our permanent addiction to conducting socially responsible business, as our permanent business and strategic orientation. Competitive positioning in
both, national and regional markets, together with continuous improvement of our products and services offer to corporate clients, with paying respect to socially responsible
business conducting and supporting responsible business culture both in internal and
external fields, taking an active role within the UN Global Compact Serbia and application
of modern banking standards are characterizing the latest, advanced phase in implementation of corporate social responsibility principles.
JUBMES banka shall continue to develop activities for promotion of responsible business principles, to advance standards, rules and values of healthy and open business, to
develop relationship with all interested groups and support the development of local and
national goals, defined by agendas of the present and future phases of European integration process.
In the forthcoming period the Bank shall affirm its position of recognized socially responsible entity which develops inter-sector cooperation, as an important component of
the socially responsible business, thus helping realization of the strategic concept – sustainable development.
29
Expressions of appreaciation for the Bank’s
contribution in the area of corporate social
responsibility activities
30