KOMERCIJALNA BANKA AD SKOPJE ANNUAL REPORT. OF KOMERCIJALNA BANKA AD SKOPJE for the period from to

Transcription

1 KOMERCIJALNA BANKA AD SKOPJE ANNUAL REPORT OF KOMERCIJALNA BANKA AD SKOPJE for the period from to Skopje, February 2017

2 2 BALANCE SHEET as at No. Amount ITEM Previous year Current year ASSETS 1. Cash and cash equivalents Investments in debt securities that can be used for refinancing in NBRM a. Treasury bills b. Government securities c. Impairment Loans and advances to banks a. Loans b. Deposits c. Other receivables d. Impairment Loans and advances to other customers a. Loans b. Other receivables c. Impairment Debt securities a. Treasury bills - - 5b. Government securities c. Other debt securities - - 5d. Impairment Investments in equity instruments Investments in associates a. Investments in banks - - 7b. Other investments in associates

3 Investments in subsidiaries a. Investments in banks - - 8b. Other investments in subsidiaries Joint ventures - - 9a. Joint ventures in banks - - 9b. Other joint ventures Intangible assets a. Founding expenditures b. Expenditures for research and development c. Concessions, patents, licences, trademarks and similar rights d. Goodwill e. Other intangible assets Tangible assets a. Land b. Property and equipment c. Other tangible assets Other assets/receivables a. Restricted deposits b. Derivative assets held for risk management c. Embedded derivatives d. Non - current assets held - for - sale and disposal group e. Executed collateral f. Assets pledged as collateral g. Advances for intangible assets h. Advances for tangible assets i. Income tax receivable j. Deferred tax assets k. Financial assets at fair value through profit or loss upon initial recognition l. Other receivables m. Impairment Deferred incomes and prepaid expenses TOTAL ASSETS

4 LIABILITIES AND EQUITY AND RESERVES 15. LIABILITIES Liabilities to banks a. Current accounts b. Deposits c. Restricted deposits d. Borrowings e. Other liabilities Liabilities to other customers a. Current accounts b. Deposits c. Restricted deposits d. Borrowings e. Other liabilities Issued debt securities liabilities a. Issued instruments on money market b. Issued deposit certificates c. Bonds issued d. Other issued debt securities Other liabilities a. Derivative liabilities held for risk management b. Embedded derivatives c. Trading liabilities d. Liabilities related to disposal group e. Income tax payable f. Deferred tax liabilities g. Financial liabilities at fair value through profit or loss h. Other liabilities Deferred income and expenses payment in the future periods Risks and liabilities provisions a. Provisions for off - balance credit exposure b. Provisions for pensions and other employee benefits c. Other provisions Subordinated debt EQUITY AND RESERVES Subscribed capital Share premium

5 5 26. Treasury shares repurchased 27. Reserves a. Statutory reserve b. Other reserves Revaluation reserves and other valuation differences Profit for the financial year Loss for the financial year Retained earnings Accumulated loss Minority interest TOTAL LIABILITIES AND EQUITY AND RESERVES OFF - BALANCE RECORDS 35. Off balance records - assets Off balance records - liabilities

6 6 INCOME STATEMENT for the period from to No Amount I T E M Previous year Current year Interest income Interest expense Fee and commission income Fee and commission expense Income from investments in associates, subsidiaries and joint ventures Net gains from securities operations Net losses from securities operations - 8. Net foreign exchange gains Net foreign exchange losses Other operating income Personnel expenses a. Salaries b. Expenses for taxes and compulsory contributions for social insurance c. Other employees benefits Amortization and depreciation of intangible assets and tangible assets Impairment of intangible assets and tangible assets Impairment, special reserve and provisions a. Impairment of assets b. Special reserve for off balance credit exposure ( ) ( )

7 c. Other provisions Expense from investments in associates, subsidiaries and joint ventures Other operating expenses Profit from continuing operations Loss from continuing operations Profit from discontinuing operations Loss from discontinuing operations Profit before tax Loss before tax Profit tax (part of the Tax balance) Profit for the financial year Loss for the financial year Average number of employees based on working hours during the financial year (in an absolute amount) Number of working months 12 12

8 8 E X P L A N A T I O N of the Income Statement of Komercijalna banka AD Skopje for the period from The annual report is made according to the law legislation in the Republic of Macedonia, by law legislation prescribed by National Bank of the Republic of Macedonia, as well as according to the Regulations on the form and content of the annual report of banks and other financial institutions. In the course of the period from to , the financial result is achieved, as follows: (in thousand denars) 1. Total income Total expenses Profit before tax Income tax expense Net profit Income The total income at the end of 2016 is decreased for 0,1% compared to 2015 (Table 1). Table 1 (in 000 denars) I T E M Realization Structure Index : Interest income ,7 93,4 2 Fee and commission income ,4 100,8 3 Income from investments in associates, subsidiaries and joint ventures ,8 111,8 4 Net gains from securities operations ,4 150,4 5 Net foreign exchange gains ,4 121,6 6 Other operating income ,3 170,3 TOTAL: ,0 99,9

9 9 In the structure of the total income, the interest income from loans and other placements approved participate with 66,7%. The total interest income is decreased for 6,6% compared to 2015, as a result of a decrease of the interest income from loans approved to non - profit institutions in service of households for 27,2%, as well as a decrease of interest income from non - financial companies for 12,3%. At the same time, there is an increase of the interest income from government for 32,5%, an increase from interest income from loans approved to non-residents for 12,6%, an increase from interest income from loans approved to banks for 5,0%, as well as an increase of the interest income from loans approved to households for 4,0%. (Table 2). Table 2 (in 000 denars) I T E M Realization Structure Index : Interest income from loans and other placements approved to non - financial companies ,0 87,7 2 Interest income from loans and other placements approved to government ,2 132,5 3 Interest income from loans and other placements approved to non - profit institutions in service of households ,1 72,8 4 Interest income from loans and other placements approved to banks ,3 105,0 5 Interest income from loans and other placements approved to other financial companies Interest income from loans and other placements approved to households ,1 104,0 7 Interest income from loans and other placements approved to non - residents ,0 112,6 8 Impairment of interest income, on net basis ( ) (73.872) 2,0 67,5 9 Collected previously written - off interests ,3 70,0 TOTAL: ,0 93,4

10 10 The fees and commission income is increased for 0,8% compared to 2015, as a result of increase of the income under fees and commissions from banking card transactions in the country and abroad, an increase of the income under fees and commissions for maintaining current accounts of citizens, as well as an increase of the income under fees and commissions upon lending and guarantee operations. The income from investments in associates, subsidiaries and joint ventures in the structure of the total income participates with 0,8%, shows an increase of 11,8% compared to 2015 which fully refers to participation in the net profit of the associate company KB First Pension Company AD Skopje. In the structure of the total income, net gains from securities operations participate with 0,4%, and compared to 2015 is has increased for 50,4%. In the structure of the total income, net foreign exchange gains participate with 2,4%, and compared to 2015 it has increased for 21,6%. The other operating income in the structure of the total income participates with 9,3%, and shows an increase of 70,3% compared to 2015, that mainly is as a result of increased collected previously written off claims, as well as increased capital gain from sale of executed collateral.

11 11 2. Expenses The total expenses show a decrease of 5,9% compared to 2015 (Table 3). Table 3 (in 000 denars) I T E M Realization Structure Index : Interest expense 2 Fee and commission expense 3 Net loss from securities transactions 4 Personnel expenses 5 Amortization and depreciation of intangible assets and tangible assets 6 Impairment of intangible assets and tangible assets 7 Impairment, special reserve and provisions 8 Expense from investments in associates, affiliates and joint ventures ,2 77, ,4 120, ,4 102, ,0 94, ,6 65, ,5 100, Other operating expenses ,9 99,7 TOTAL ,0 94,1

12 12 In the structure of the total expenses, interest expense participates with 12,2% and show a decrease of 22,2% compared to This decrease is as a result of a decrease of the interest expense from financial companies for 34,7%, a decrease of the interest expense from households for 23,8%, a decrease of the interest expense from non-financial companies for 22,0%, a decrease of the interest expense from banks for 16,1%, as well as a decrease of the interest expense from non - profit institutions in service of households for 15,6%. Also, there is an increase of the interest expense from government for 84,6%, as well as a decrease of the interest expense from non-residents for 33,1%. (Table 4). Table 4 (in 000 denars) I T E M Realization Structure Index : Interest expense from non - financial companies ,4 78,0 2 Interest expense from government ,2 184,6 3 Interest expense from non - profit institutions in service of households ,0 84,4 4 Interest expense from banks ,2 83,9 5 Interest expense from other financial companies ,0 65,3 6 Interest expense from households ,3 76,2 7 Interest expense from non - residents ,9 133,1 T O T A L: ,0 77,8 The fee and commission expense in the structure of the total expenses participates with 5,4% and is higher for 20,3% compared to The personnel expenses in the structure of the total expenses participate with 18,4%, and show an increase for 2,3% compared to The amortization and depreciation of the intangible and tangible assets in the structure of total expenses participates with 4,0% and shows a decrease of 5,3% compared to The expenses under impairment of intangible and tangible assets, i.e. impairment of executed collateral, in the structure of total expenses participate with 7,6%, and show a decrease of 34,7% compared to 2015.

13 13 The expenses under impairment of intangible and tangible assets (executed collateral) for this reporting period are in the amount of thousand denars, most of which ( thousand denars) refer to performed additional impairment in accordance with the decision from NBRM, as well as (3.576 thousand denars) performed re-estimation of the property taken over by the Legal Affairs and Problem Loans Workout Division. The expenses under impairment, special reserve and provisions, i.e. impairment loss of claims (loans and placements, interests, commissions, other claims and securities), special reserve for off balance credit exposure and the other provisions, show an increase of 0,4%, and in the structure of the total expenses participate with 37,5%. The other operating expenses in the structure of the total expenses participate with 14,9%, and show a decrease of 0,3% compared to 2015, and mainly refer to expenses under deposits insurance premiums, as well as material expenses and services, administrative and marketing costs. In 2016 the Bank realized gross profit of thousand denars, i.e. net profit of thousand denars. Thus, the return on assets ratio (ROA) is 0,8% (2015:0,5%), and return on equity ratio (ROE) is 7,4% (2015: 5,2%). BANK S BOARD OF DIRECTORS