LETTER FROM THE PRESIDENT

Size: px
Start display at page:

Download "LETTER FROM THE PRESIDENT"

Transcription

1 ANNUAL REPORT 2013

2 LETTER FROM THE PRESIDENT Dear Investors, The year 2013 was a time of great change for us at SGB- Bank S.A., and the changes are set to continue this year. The challenges facing the Shareholders, Supervisory Board, Management Board and management team include making SGB-Bank S.A. a more effective institution and, even more importantly, a professional service provider for the Cooperative Banks associated in Spółdzielcza Grupa Bankowa. Our ambition as the Associating Bank is to deliver a comprehensive service package to free up SGB Cooperative Banks so that they can focus fully on their core business and on reinforcing their position in local communities. We devoted a lot of thought and effort to the Optimisation Program of SGB-Bank S.A., achieving significant savings in running costs. As a result, the Bank is now functioning more effectively, especially seen as at the same time we managed to introduce a series of changes to streamline our organisation. Their effects will be visible in the coming years, yielding even better and more effective business performance. Issues of strategic importance to the Bank as well as the Association include those related to the drafting and implementation of new EU regulations applicable to all Cooperative Banks, the CRD IV/CRR Directive. The actions we undertake now will impact the cooperative banking sector for years to come. The financial performance of SGB-Bank S.A. was also influenced by external factors. In 2013, banks in Poland operated in the shadow of a deep economic slump. Signs of recovery, which became apparent especially in the second half of the year, were still weak. Our business was also affected by a series of interest rate cuts by the Monetary Policy Council, as a result of which the reference rate reached its lowest level in the last twenty five years. I would like to extend my sincere thanks to our Shareholders, members of the Supervisory Board and the Association Board for their good, effective cooperation in Words of appreciation also go out to our managers and all employees. Yours sincerely, Ryszard Lorek President of the Board SGB-Banku S.A.

3 LIST OF CONTENTS ANNUAL REPORT 1. Basic information about the Bank Name, head office, KRS, REGON, NIP Shareholding Composition of the Management Board and Supervisory Board Structure of SGB-Bank S.A. and SGB Group 8 2. Factors and events affecting the Bank s situation Macroeconomic environment Trends in the financial market Cooperative banking Change in the Bank s strategy Optimisation program Bank s operations Cooperative banking services Corporate banking and services to the public finance sector Retail banking Treasury activities Cash management Support areas Development of distribution channels Changes in Information Technology Changes in processes and products Risk management Goals and principles of risk management Credit risk Liquidity risk Interest rate risk Currency risk Operational risk Capital adequacy, own funds and capital adequacy ratio Internal capital (Second Pillar) Committee Activities 39

4 LIST OF CONTENTS 6. Internal audit /controls system Internal audit Internal control Examination of the Bank s compliance with legal provisions and internal regulations Financial performance Forecasts and plans Macro environment and financial market forecasts Plans 48 Appendix no 1 Organisational chart of SGB-Bank S.A. as of 31 December Appendix no 2 Branches of SGB-Bank S.A. as of 31 December Appendix no 3 Cooperative Banks associated with SGB-Bank S.A. as of 31 December

5 CHAPTER 1 BASIC INFORMATION ABOUT THE BANK 1.1 Name, head office, KRS, REGON, NIP Shareholding Composition of the Management Board and Supervisory Board Structure of SGB-Bank S.A. and SGB Group 8

6 CHAPTER 1: Basic information about the Bank 1.1 Name, head office, KRS, REGON, NIP SGB-Bank Spółka Akcyjna operates as a joint-stock company, pursuant to the Act on the Operation of Cooperative Banks, Their Associations and Associating Banks, Banking Law and Code of Commercial Partnerships and Companies. The scope of the Bank s business specified in the Articles of Association is to serve as the associating bank for cooperative banks which signed an association agreement with the Bank, provide comprehensive banking services for consumers, corporate entities and non-corporate entities, including business entities and local government bodies, and pursue other forms of cooperation with cooperative banks shareholders, as well as undertake initiatives for the development of cooperative banking. The table below presents the basic identification data of SGB-Bank S.A. 1.3 Composition of the Management Board and Supervisory Board Management Board In the period from 1 January 2013 to 9 January 2013, the Management Board was composed of: Adam Skowroński Vice President of the Management Board, acting President, Danuta Kowalczyk Vice President of the Management Board, Ryszard Lorek Vice President of the Management Board, Zygmunt Miętki Vice President of the Management Board, Tabela 1. Registry data As of 10 January 2013, the Supervisory Board appointed Danuta Kowalczyk as the President of the Management Board for the remaining term of office and vested the President s duties in her up to the time of obtaining PFSA approval. Consequently, between 10 January 2013 and 18 March 2013, the Management Board was composed of: 1.2 Shareholding On 14 February 2013, series AG share issue was registered with the KRS, the authorised capital of SGB-Bank S.A. was raised up to PLN ,00. Danuta Kowalczyk Vice President of the Management Board, acting President, Ryszard Lorek Vice President of the Management Board, Zygmunt Miętki Vice President of the Management Board, Adam Skowroński Vice President of the Management Board, On 25 June 2013, the GSM adopted a resolution regarding series AH share issue. As a result, shareholders were offered series AH ordinary registered shares. The shares were taken up by existing shareholders. A total of 134 shareholders acquired shares, amounting to PLN The issue was registered with the KRS on 10 December 2013, the authorised capital of SGB-Bank S.A. was raised up to PLN As of 19 March 2013, the Supervisory Board dismissed Danuta Kowalczyk as President of the Management Board. At the same time, as of 19 March 2013, the Supervisory Board appointed Ryszard Lorek as the President of the Management Board and vested the President s duties in him up to the time of obtaining PFSA approval. Hence, between 19 March 2013 and 8 May 2013, the Management Board was composed of: Ryszard Lorek Vice President of the Management Board, acting President, Adam Skowroński Vice President of the Management Board, S 6 CHAPTER 1: Basic information about the Bank

7 CHAPTER 1: Basic information about the Bank Danuta Kowalczyk Vice President of the Management Board, Zygmunt Miętki Vice President of the Management Board, In 2013 the Bank s Management Board held 71 meetings, adopted 512 resolutions and passed 441 opinions. The Management Board adopted resolutions on issues including: As of 9 May 2013, the Supervisory Board dismissed Danuta Kowalczyk as Vice President of the Management Board. Following the dismissal, the composition of the Management Board from 9 May 2013 to 3 June 2013 was as follows: credit approvals, organisational changes, introducing new internal regulations, adapting the existing regulations to changes in applicable law. Ryszard Lorek Vice President of the Management Board, acting President, Adam Skowroński Vice President of the Management Board, Zygmunt Miętki Vice President of the Management Board, On 4 June 2013, the Polish Financial Supervision Authority approved the appointment of Ryszard Lorek as President of the Management Board. From 4 June 2013 to 23 June 2013, the Management Board was composed of: Ryszard Lorek President of the Management Board, Adam Skowroński Vice President of the Management Board, Zygmunt Miętki Vice President of the Management Board, The Management Board also made decisions on granting financial aid to associated cooperative banks, consenting to expanding operating territories and activities referred to in Banking Law, that require the consent of the associating bank and expressed opinions on candidates for the President of the Management Board of the Cooperative Bank. The Bank s Management Board Members within the scope of their competence issued 277 decisions on issues including introducing, amending or revoking internal regulations, organisational structures of branches, tables of commissions and fees for banking services and transactions, interest rates, promotions, petty cash limits, recommendations to apply associational regulations at the associated cooperative banks. Moreover, the President of the Management Board signed one regulation regarding an organisational/disciplinary issue. Following the resignation submitted by Zygmunt Miętki from his functions as Management Board member, the Supervisory Board at the meeting on 24 June 2013 resolved that his term of office had expired due to the resignation. At the same time on 24 June 2013, the Supervisory Board appointed Paweł Masadyński as Vice President of the Board. Consequently, between 24 June 2013 and 31 December 2013, the Management Board was composed of: Ryszard Lorek President of the Management Board, Adam Skowroński Vice President of the Management Board, Paweł Masadyński Vice President of the Management Board, S 7 CHAPTER 1: Basic information about the Bank

8 CHAPTER 1: Basic information about the Bank Supervisory Board In the period from 1 January to 25 June 2013, the Supervisory Board of SGB-Bank S.A. was composed of: Table 2. Composition of the Supervisory Board 8 th term of office (from 1 January to 25 June 2013) On 25 June 2013, due to the end of the term of office, the GSM of SGB-Bank S.A. elected the Supervisory Board of SGB-Bank S.A. of the 9th term of office for From 25 June to 31 December 2013, the Supervisory Board of SGB-Bank S.A. was composed of: Table 3. Composition of the Supervisory Board 9th term of office (from 25 June to 31 December 2013) In 2013, the Supervisory Board held 11 meetings, adopting 63 resolutions and passing 128 decisions. 1.4 Structure of SGB-Bank S.A. and SGB Group Head Office As of 31 December 2013 the structure of the Bank s Head Office included 11 organisational units, including nine Departments, Centre of Operations and IT, plus one Team. In the course of 2013, some significant changes took place in the Bank s organisation. As of 1 June 2013, the Bank adopted a completely new organisational structure. The structure was divided into three divisions: the role of the Relations and Supervision Division, comprised of the Relations Department, Audit Department, HR Department and the Monitoring and Internal Audit Team, is to develop relations with the associated cooperative banks, oversee corporate image and conduct joint marketing activities of SGB, as well as coordinate strategic projects and activities; the Division is also responsible for conducting independent and unbiased audit reviews at the Bank as well as when requested by the associated cooperative banks; another important task is to S 8 CHAPTER 1: Basic information about the Bank

9 CHAPTER 1: Basic information about the Bank prepare and implement HR policy in support of the Bank s strategic priorities, the role of the Risk and Finance Division, comprised of the Finance Department, Bank Risk Department and Credit Risk and Debt Collection Department, is to measure and monitor risks, assess and evaluate the economic situation of the Bank and Association, set capital requirements and draw up mandatory reports, define and implement accounting and tax policy, as well as restructure and collect debts, the role of the Business Support Division, comprised of the Centre of Operations and IT, Treasury Department, Banking Product Department and Sales Support Department, is to generate own business and jointly with the associated cooperative banks, provide product and sales support, provide ICT infrastructure and administrative services of the Bank, and also provide services related to settlements, payment cards, online banking; its other important tasks involve the inter-banking market, capital market, foreign currency market: managing operational liquidity, interest rates and currency operations of the Bank. Importantly, the organisational units within each Division are responsible for supporting the associated cooperative banks on the one hand, and cooperating within the Bank on the other. As of 1 June 2013, new Organisational Regulations of SGB-Bank S.A. entered into force. The changes introduced in the Bank s organisation were reflected in resolutions on giving the Management Board Members powers of the Management Board of SGB-Bank S.A. Moreover in 2013 at the Head Office there were interdisciplinary task forces, project teams and standing committees. The list of committees as of 31 December 2013 is as follows: Branches Asset/Liability Committee ALCO, Credit Committee, Steering Committee for def3000 development and its deployment in cooperative banks, Operational Risk Committee, Project Portfolio Committee, Expenses Committee. As of 31 December 2013, SGB-Bank S.A. conducted its operations through 24 Branches (including 2 Branches as Financial Business Centres) and SGB24 functionally linked to the online banking service. Compa- red to 31 December 2012, the number of Branches declined by 6: as of 24 June 2013, II Branch in Bydgoszcz, Żyrardów Sub-branch which was part of the Warsaw Branch and the Branch in Lublin were closed down, as of 29 July 2013, the II Branch in Łódź was closed down, as of 26 August 2013, the Branch in Oświęcim was closed down, as of 16 December 2013, the III Branch in Poznań was combined with the Financial Business Centre Branch in Poznań. The list of the Bank s Branches as of 31 December 2013 is enclosed as Appendix no 2 with this Report. The organisational chart of the Bank is enclosed as Appendix no 1 with this Report. Tabela 4. Employment at SGB-Bank S.A. in 2012 and 2013 The average headcount at SGB-Bank S.A. amounted to FTEs in 2012, and FTEs in S 9 CHAPTER 1: Basic information about the Bank

10 CHAPTER 1: Basic information about the Bank Employment structure The headcount at SGB-Bank S.A. as of was full-time equivalents. The table below presents the basic information on the employment at the Bank over the past 2 years. Association In the course of 2013, the number of associated cooperative banks did not change and as of 31 December 2013 amounted to 206. The list of cooperative banks associated with SGB-Bank S.A. in Poznań as of 31 December 2013 is enclosed as Appendix no 3 with this Report. In 2013, the Association Board convened 9 times and held 2 joint meetings with the Supervisory Board of SGB-Bank S.A. In 2013 the Association Board adopted 24 resolutions and passed 92 decisions. In 2013, a new term of office of the Association Board started. The new Association Board for the term of was elected by the Presidents Meeting on 22 October Key capital exposures of SGB-Bank S.A. The most significant capital exposures for SGB-Bank S.A. and Spółdzielcza Grupa Bankowa include the following companies (with their core business indicated): Bankowy Ośrodek Doradztwa i Edukacji Sp. z o.o. educational, consulting & advisory activities in the field of business finance, organisation and management, publishing. FAKTORZY S.A. providing financial services related to factoring and buying monetary claims, FORTUNE S.A. restructuring, followed by the sale of held assets, acquired most often in the course of foreclosure, by way of enforcement, of collaterals from the banking portfolio, LMB Capital S.A. financial holding activities, the company specialises in executing business buyouts, SGB CDR Investment Sp. z o.o. other activities supporting financial services. In practice, the company deals in debt collection, recovery and receivables purchasing. SGB-Leasing Sp. z o.o. concluding lease contracts with business partners, mainly regarding machines, equipment and vehicles, Bankowe Biuro Nieruchomości Sp. z o.o. activities related to services in the real estate market, especially property lease and management, Capital exposures are regularly assessed at SGB-Bank S.A., with the conclusions implemented on an ongoing basis. The goal of this approach is to take into account the changing circumstances in order to optimise the capital exposures of SGB-Bank S.A. and focus on those projects that support SGB and SGB-Bank S.A. in the most effective way. S 10 CHAPTER 1: Basic information about the Bank

11 CHAPTER 2 FACTORS AND EVENTS AFFECTING THE BANK S SITUATION 2.1 Macroeconomic environment Trends in the financial market Cooperative banking Change in the Bank s strategy Optimisation program 15

12 CHAPTER 2: Factors and events affecting the Bank s situation 2.1 Macroeconomic environment World economy In the last quarter of 2013, there were stronger signs of a demand revival in developed countries mainly the United States, United Kingdom and Japan. Eurozone economies were growing at a slower rate, even though their economic situation was gradually improving, too. According to the International Business Outlook report, published regularly by the NBP, Q4 of 2013 was the third consecutive formation continued to increase (by 1.3% y/y), and the investment rate in the economy reached 26.0%, down from 26.8% the year before. The positive impact of domestic demand on economic growth was reinforced and reached 1.2 percentage points. Other factors with a positive impact on GDP growth included consumer consumption (+1.1 percentage points, the highest figure since Q1 of 2012), as well as net exports (+1.5 percentage points), mainly due to a marked increase in exports in Q4 of 2013 (6.3% y/y). Throughout 2013, GDP in real terms was higher by 1.6% compared to 2012 (in preceding year s fi- Table 5. Basic interest rates, as of 31 December 2013 quarter of positive GDP growth in the Eurozone. Economic recovery turned out to be the strongest in the largest country of the Eurozone, i.e. in Germany. Forecasts for the Eurozone anticipate further improvement coupled with low inflation. Contributing factors will include stronger internal demand, lower inflation and improved situation in the labour market. The risk factors for GDP growth in the Eurozone include the continuing risk of euro appreciation and tensions in financial markets, related to the stress test planned by the ECB for Central banks in developed countries are continuing with mild monetary policy. It manifests itself by e.g. maintaining record-low interest rates. In particular, the refinancing rate in the Eurozone was cut in November 2013 to 0.25%, while the Federal Open Market Committee of the Federal Reserve maintained the federal funds rate target at a range 0.00%-0.25% throughout the year. The rate is set to remain at such a low level as long as the unemployment rate in the USA does not drop below 6.5%, and the inflation expectations for the next months do not exceed 2.5%. Poland s economy According to the Polish Central Statistical Office (GUS), unadjusted seasonally GDP growth in Q4 of 2013 amounted to 2.7% y/y (compared to 2.0% y/y in Q3). Systematic growth was noted in domestic demand (by 1.2% y/y) and consumer consumption (by 2.1% y/y). Gross fixed capital xed prices). GDP growth was higher than expected mainly due to the positive impact of net exports and domestic consumer demand, with the impact of investment demand close to neutral. Internal demand shrunk by 0.2% in real terms, and consumer consumption increased by 0.8%. Gross fixed capital formation declined by 0.4%, and the rate of inflation in the national economy in 2013 dropped to 18.4% from 19.1% in the preceding year. According to GUS data, the positive impact of domestic demand was reinforced and the impact of foreign demand on GDP growth continued to be positive and strong. The change in the structure of economic growth and better-than-expected macroeconomic data for Q4 of 2013 seem to augur an improvement in the economic outlook sooner than was expected even as recently as a few months back. The GDP growth rate in 2014 will be nearly twice as high as the year before and according to the revised forecast of SGB-Bank S.A. will amount to 3.1% y/y. The labour market situation is improving, albeit slowly. According to GUS data, the unemployment rate in December 2013 stood at 13.4%, which is the same as in December Employment in the business sector increased in December by 0.3% y/y, but fell by 0.2% m/m. S 12 CHAPTER 2: Factors and events affecting the Banks s situation

13 CHAPTER 2: Factors and events affecting the Bank s situation Chart 1. Dynamics of selected macroeconomic ratios (%, y/y) 2.2 Trends in the financial market Financial market in Poland MPC s monetary policy H1 of This halted the decline of Treasury bond prices. Upward pressure was put on yields by the unrest in emerging and developing markets related to foreign capital outflow. The outflow was caused by the expectations of gradual tapering of the quantitative easing policy by Fed. In 2013, the Monetary Policy Council continued its cycle of reducing the basic NBP interest rates. As a result, the reference rate was lowered in January, February, March, May, June and July and eventually reached the level of 2.5%. Monetary easing was caused among other reasons by the inflation rate falling fast in final months of the year, below the inflation target. The MPC also strove to support economic recovery at home and to stabilise the situation in the financial market. The Council also declared that NBP interest rates should remain unchanged over a longer time horizon, i.e. at least until the end of Q3 of Markets: money and bonds In 2013, the interbank lending rates dropped. The individual WIBOR rates fell, depending on the term, by 120 to 170 basis points. The yield on Treasury bonds also declined. The higher yield on bonds was influenced by the expectations of tightening monetary policy by the MPC in However, in November 2013 it was suggested that interest rates will remain unchanged until the end of Markets: currency and stock In the final months of 2013, the exchange rate of the zloty strengthened somewhat. It was affected by gradual economic recovery and record-high foreign exchange performance. Yet, depreciation pressure was by no means gone. It was getting stronger as capital fled from emerging markets. As a result, the exchange rate of the zloty was highly volatile at times, particularly against the US dollar. The average monthly exchange rates of the zloty at NBP in December 2013 amounted to: 3.05 USD/PLN and 4.18 EUR/PLN compared to 3.12 EUR/PLN and 4.10 EUR/PLN in December At the end of 2013 share prices at the WSE dropped, even though the scale of the drop was smaller than share price declines at the stock exchanges in other emerging markets. This is because stock market indices in Poland, especially small and mid caps, were boosted by the publications on macroeconomic data, indicating a systematic improvement of the economic outlook. Between December 2012 and December 2013, the WIG20 dropped from points to points, whereas the small cap index swig80 went up from points to points. S 13 CHAPTER 2: Factors and events affecting the Banks s situation

14 CHAPTER 2: Factors and events affecting the Bank s situation Table 6. WIBOR rates and yield on Treasury bonds in (%) 2.3 Cooperative banking sociations are presented in the table 7 and chart 2 below. Cooperative banking sector As of 31 December 2013, the cooperative banking sector included 571 banks, i.e. 1 less than the year before. Total assets amounted to K PLN and were up by 12.5% compared to December The share held by cooperative banks measured by the balance-sheet total in the total banking sector in Poland amounted to 6.9%. In the period under analysis, own funds increased by K PLN (+12.5%) and at the end of Q4 amounted to K PLN (7.0% of the whole banking sector). In 2013, cooperative banks generated gross profits amounting to K PLN (down by 21.9% from the year before). The after-tax profit reached K PLN (-21.9%) and accounted for 4.9% of the result of the whole banking sector. The capital adequacy ratio was up 0.47 per cent from the end of December 2012 and amounted to 14.3%. The basic data for individual As- In 2013, SGB recorded an increase in total deposits by 10.6% and an increase of loans extended by o 7.0%. At the end of 2013, SGB cooperative banks had customer service outlets (up by 12 outlets), a network of ATMs and employed employees (down by 58 FTEs). The average assets per employee ratio increased by 10.2%. Chart 2. Share held by individual Associations in the balance-sheet total of both Associations SGB BPS 36,68% 63,32% Table 7. Basic financial data for individual Associations (in K PLN) Data for the CB sector according to FSA - publications - monthly data of S 14 CHAPTER 2: Factors and events affecting the Banks s situation

15 CHAPTER 2: Factors and events affecting the Bank s situation 2.4 Change in the Bank s strategy The key challenges facing the Bank were identified: The General Shareholders Meeting of SGB-Bank S.A. on 25 June 2013 adopted an amended Strategy of SGB- Bank S.A. in Poznań documented in SGB Strategy for acquiring capital resources for future growth, IPS organisation, readiness to provide back-office and middleoffice services to cooperative banks Strategy update was in response to the dynamic market changes and aimed to account for the changes in the environment surrounding the Bank and Group. The overriding goal of the Bank, i.e. to support cooperative banks, reinforce their security based on an effective banking business, has remained unchanged. Strategic goals that will enable the Bank to successfully face the challenges ahead were divided into five interrelated perspectives: 2.5 Optimisation program The optimisation program includes the following tasks: The market situation, expectations of the Bank s owners and the need to ensure long-term growth of the Bank and Spółdzielcza Grupa Bankowa led to the implementation of the Optimisation Program at the Bank, appended to the financial plan for 2013 and years Optimisation activities cover 12 projects aimed at increasing the Bank s business performance that have affected all organisational units of the Bank s head office and its branches. The projects were executed in a rigidly defined environment: with defined scopes of responsibility, schedules, management structures and anticipated deliverables. organisational structure optimisation of the Bank s head office, branch structure optimisation, change in cash transactions model, centralisation and automation of syndicated and own loans, review and optimisation of internal processes, including reporting, review and optimisation of contracts with suppliers, review and optimisation of real estate management, outsourcing of some IT processes to third parties, back-office and middle-office outsourcing from cooperative banks to SGB-Bank, review of the legal services model, outsourcing of debt collection, review of subsidiaries. S 15 CHAPTER 2: Factors and events affecting the Banks s situation

16 CHAPTER 3 BANK S OPERATIONS 3.1 Cooperative banking services Corporate banking and services to the public finance sector Retail banking Treasury activities Cash management 25

17 CHAPTER 3: Bank s operations The average balance in the current accounts of cooperative banks in 2013 was in the range of K PLN and 91.2% of that amount was made up of loro currency accounts. Compared to 2012, this represents a 47.8% drop. Such a significant decline was related to a new offer made available for cooperative banks in December 2012, whereby they were able to deposit funds in an automatic O/N deposit in the current account. The balance of funds depo- Chart 3. Balance of deposits of cooperative banks at month end (in K PLN) 3.1 Cooperative banking services Cooperation with regard to deposits SGB-Bank S.A. finances its operations mainly with the funds acquired from the cooperative banks associated in Spółdzielcza Grupa Bankowa and, to a lesser degree, from commercial banks and non-financial clients. Cooperative banks may deposit their surplus funds with SGB- Bank S.A. on current accounts as well as O/N and term deposits. In 2013, the growth dynamics of cooperative banks funds remained high, which to a large extent was due to the influx of funds from the European Union in the form of direct farming subsidies. The average balance of deposits received from cooperative banks amounted to K PLN, which is up by 20.2% from the year As of , the balance of deposits made by cooperative banks amounted to K PLN, out of which 98.9% were in the Polish zloty. This accounts for a 15.1% boost compared to the balance as of Cooperative banks deposited the majority of their surplus funds in short-term deposits. As of , 74% deposits were made for up to 1 month, and 11% for periods between 1 and 3 months. It needs to be emphasised, though, that despite the short-term, cooperative banks deposits were very stable. Chart 4. Ageing of deposits received from cooperative banks as of months 11% 3-6 months 7% 6-12 months 8% over a year 0% do 1 month 74% sited in automatic O/N deposits as of 31 December 2013 amounted to K PLN, and the average balance in 2013 was K PLN. As of 31 December 2013, the balance of current accounts of cooperative banks was K PLN, which corresponds to a drop by 6% compared to the status as of 31 December The total balance of funds acquired from cooperative banks in the balance sheet as of 31 December 2013 amounted to K PLN, which accounts for 79% of the balance-sheet total (in 2012, the percentage was S 17 CHAPTER 3: Bank s operations

18 CHAPTER 3: Bank s operations 77%). At the end of 2013, a 14% increase in cooperative banks funds was noted compared to December A number of changes was made to the SGB-Bank S.A. product portfolio in 2013 in terms of FX transfers. banks providing WU money transfers increased last year by 4 new subagents and implementations of this service started at 3 more banks. At the end of 2013, WU services were available at a total of 76 cooperative banks, including 17 outside the SGB association. With regard to foreign currency services, the rates in the table of commissions and fees were reduced and the commission system was simplified. Moreover, the FX transaction sessions were prolonged up to 3 p.m. and the Cooperation with regard to loans Chart 5. FX transactions with cooperative banks (K PLN) thresholds for client negotiations were lowered. In December 2013, a new system was implemented to handle foreign currency orders of the Bank and cooperative banks clients. With regard to transactions in the financial market, changes were introduced in the principles governing FX transactions lowering negotiation thresholds, unlocking the transaction exchange rate calculation system, reducing margins applied by the Bank in its FX table for cooperative banks. Moreover, a promotional offer was introduced, authorising banks to transact at revolving exchange rates. In 2013, SGB-Bank S.A. concluded a total of FX spot transactions with cooperative banks amounting to K EUR, K USD and K GBP. Compared to 2012, transactions in EUR were up by 4.96% and in GBP by 6.97%, whereas the annual transactions in USD were down by 23.32% than the figure for In 2013, the Group expanded its operations in handling Western Union transfers. The number of cooperative As of 31 December 2013, the balance of credit in the non-financial and public sector extended within the framework of the consortium comprising SGB-Bank S.A. and cooperative banks amounted to K PLN. This figure means that the value of loans in the consortium increased by K PLN from the status quo of the previous year. In 2013, the consortium extended loans amounting to K PLN, and the number of loans extended in the consortium was 316. In 2013, SGB-Bank S.A. cooperated with 158 cooperative banks with regard to credit extended by the consortium. Cooperation with regard to leasing services Like in previous years, cooperative banks offered their clients lease financing in collaboration with SGB-LE- ASING Sp. z o.o. As of 31 December 2013, the net value of leases concluded by cooperative banks was K PLN, which corresponds to an increase by K PLN. (205% dynamics) compared to In 2013, leasing services produced 99 contracts, and the growth dynamics of the number of contracts concluded reached 160% y/y. S 18 CHAPTER 3: Bank s operations

19 CHAPTER 3: Bank s operations Cooperation with regard to factoring services In 2013, cooperative banks provided invoice factoring services in collaboration with FAKTORZY S.A. The contracts concluded as of the end of 2013 with clients of cooperative banks amounted to K PLN. Cooperation with regard to insurance services With regard to insurance services, an Association insurance agreement Secure Card and Travel Insurance was signed with Concordia Polska TUW insurance offering dedicated to payment cards. The purpose of insurance is to compensate the insured party for damages and pay out benefits due to the occurrence of events covered by the following insurance policies: Bank s risk: insurance against unauthorised use of the card, Client s risks: client s card insurance covering: insurance of funds deposited in the account, insurance of cash withdrawn from an ATM, insurance of goods bought using the card, personal accident insurance during international travel, Insurance of medical expenses abroad plus assistance Concordia Travel Assistance. banking practices in terms of protective insurance related to banking products. As a result of the support activities, regulations regarding accounts, cards and internet banking for consumers were implemented in 188 SGB banks, while those for institutional clients in 184 banks. The regulations regarding lending to consumers were implemented in 179 banks, and those on institutional clients in 92 banks. Support with regard to special programs In 2013, cooperative banks granted loans with the aid of the Agency for Restructuring and Modernisation of Agriculture (ARMA) in the form of interest rate subsidies and partial repayment of the loan principal to a total of K PLN. The number of investment loans with interest rate subsidies extended by SGB cooperative banks was 4 476, totalling K PLN, disaster loans with interest rate subsidies numbered and totalled K PLN, and there were 103 investment loans with partial repayment of the principal to a total of K PLN. The total amount of funds obtained from ARMA in 2013 for interest rate subsidies to loans extended by SGB cooperative banks was K PLN, and for partial repayment of the principal K PLN. Regulatory support with regard to products Within the framework of regulatory support, technical and implementation consultations were conducted for the associated cooperative banks and communications campaigns took place, including workshops, aiming at the implementation of associational and master regulations at cooperative banks. The following regulations were updated: accounts, cards and internet banking for individuals and institutions, personal loans (cash loans, revolving loans, mortgages, credit cards and charge cards), legal structures for securing bank loans. mortgage approvals with regard to the financing of premiums for bridging insurance and low downpayment insurance regulations were amended to comply with the ZBP recommendation on good In 2013 cooperative banks extended loans subsidised by the National Fund for Environmental Protection and Water Management earmarked for acquisition and installation of solar collectors to a total for eligible expenses amounting to K PLN with subsidies of K PLN. SGB banks also extended loans with the aid of Bank Gospodarstwa Krajowego, including student loans and loans within the framework of the Innovative Economy Operational Program, , Priority Axis 4: Investment in innovative ventures, Measure 4.3 Technology credit. Bank Gospodarstwa Krajowego provided securities in the form of guarantees and bonds on 560 loans extended by cooperative banks to SMEs to a total amount of securities of K PLN, including 460 de minimis guarantees to a total of K PLN. In 2013, cooperative banks via SGB-Bank S.A. obtained K PLN in subsidies from the National Fund for S 19 CHAPTER 3: Bank s operations

20 CHAPTER 3: Bank s operations Environmental Protection and Water Management to loans for the purchase and installation of solar collectors, K PLN in BGK interest rate subsidies to mortgages extended within the framework of the Family s own home program and K PLN in BGK interest rate subsidies to student loans. Marketing Brand promotion (SGB Promotion Fund) A total of 191 SGB cooperative banks participated in the SGB Promotion Fund in The value of the Promotion Fund amounted to PLN The Fund was used with success to promote the image of cooperative banks as strong financial entities. The Fund s resources were used to finance two nationwide image and product advertising campaigns. The campaign implemented jointly with the BPS Association with the motto Sprawdź jak dobry kredyt udzieli się Tobie (19 August 15 December) was broadcast via nationwide television and radio. Competition Business Game Fair Play Bank Genesis winners were selected from among individual players, the so-called minibanks, and teams megabanks. The game generated a lot of interest. It was joined by 75 cooperative banks from the SGB Association across Poland, and the players set up minibanks and 2843 megabanks. Product promotions In 2013, three promotional campaigns were held to activate the sale of term deposits of SGB ( SGB Deposit ) as well as one campaign promoting term deposits alongside credit facilities ( Credit or deposit ). According to the campaign formula, all promotions included 3-month deposits as well as 6-month deposits. The campaign Credit or deposit also included consumer loans and credit cards. At the same time, cooperation was continued with Visa Europe and MasterCard Europe, promoting non-cash transactions and card issuance to personal and business accounts. Apart from participation in systematic campaigns organised by payment organisations, competitions and promotions were held in support of increasing the number of transactions and cards issued: Within the framework of the Strategy for the Young, aimed at attracting new clients from the youngest age group, a Business Game was held: Fair Play Bank Genesis. The game took place online, from 7 October to 19 November 2013, and its participants represented the age group. The Game project aimed at advocating the idea of cooperative banking among young people, demonstrating its contemporary image and promoting financial literacy. The game was accompanied by a competition, in which banks created by the players competed for best results. The in the MasterCard system (MasterCard and Maestro): competition for SGB clients Masz wakacje za zakupy, competition for SGB employees Kartowy Lider SGB, another edition of the competition in which cooperative banks could win travel packages to Champions League games. in the Visa system: promotion for SGB clients Karta z prezentem dla Twojej firmy. Table 8. SGB Deposit promotions in 2013 S 20 CHAPTER 3: Bank s operations

21 CHAPTER 3: Bank s operations Sponsorship activity Sponsorship activities pursued in 2013 were aimed at proactively creating the image of Spółdzielcza Grupa Bankowa, as a credible organisation, customer-oriented, focused particularly on the inhabitants of regions where cooperative banks operate. Sponsorship projects implemented by SGB-Bank S.A. in the course of 2013 were of two-fold nature: sponsorship provided on behalf of SGB-Bank S.A. to build the image of SGB, sponsorship provided individually by cooperative banks with the support of SGB-Bank S.A. The cooperative banks which contributed to the SGB Promotion Fund in 2013 could count on the support in the execution of their own initiatives through organisational support, as well as co-financing of events, rental of display materials, and also individual consultations and attendance of SGB-Bank S.A. representatives in the sponsored events. Other areas of activity 2013 saw the return of the competition Dziś oszczędzam w SKO, jutro w Banku Spółdzielczym [Saving in SKO today, in Bank Spółdzielczy tomorrow]. The program aims to educate children and young people on the various forms of saving and managing their money. The campaign was joined by several thousand school children from nearly 460 schools. The competition is supported by a modern website SKOwSGB.pl. Capital support for cooperative banks SGB-Bank S.A. offers the following forms of financial support for cooperative banks: long-term loans treated as subordinated liabilities, which with FSA consent can be accounted for as supplementary funds of cooperative banks, loans from the resources of the Foundation of Assistance Programs for Agriculture (FAPA), bank guarantees to secure loans obtained from the cooperative bank restructuring fund managed by BGF, member share contributions to cooperative banks. In 2013, SGB-Bank S.A. did not extend any long-term loans treated as subordinated liabilities to cooperative banks. At the end of 2013, loans treated as subordinated liabilities were used by 22 cooperative banks, and the total amount of commitments thereunder was K PLN. Loans from the Foundation of Assistance Programs for Agriculture (FAPA) were taken out in 2013 by 8 cooperative banks, in the total amount of K PLN. At the end of December 2013, 37 cooperative banks were beneficiaries of this form of support, with the total amount of loans outstanding reaching K PLN. Moreover, 7 cooperative banks concluded agreements with the Foundation of Assistance Programs for Agriculture (FAPA) regarding long-term loans treated as subordinated liabilities to a combined total of K PLN. The total volume of liabilities of SGB-Bank S.A. towards BGF under bank guarantees amounted to K PLN at the end of 2013, made up of 17 guarantees provided to 13 cooperative banks. No new guarantees were extended in As of the end of 2013, SGB-Bank S.A. held member shares in 4 cooperative banks to a total of K PLN. 3.2 Corporate banking and services to the public finance sector Lending activity As of 31 December 2013, the credit portfolio from the non-financial, public and bond sector was worth K PLN, i.e. up by 1% from the year before, amounting to K PLN. The value of the credit portfolio of non-financial and public entities as of 31 December 2013 amounted to K PLN, which is similar to the figure for The structure of the credit portfolio of non-financial and public entities is presented in the table 9. The portfolio of non-financial and public sector clients was predominantly composed of loans taken out by business entities, accounting for 51.8%. Another important group of clients were farms, with a 22.9% share in the non-financial and public loan portfolio. The remaining section of the portfolio was taken up by loans of public entities at 17.4%, and loans for individuals with a 6.7% share. S 21 CHAPTER 3: Bank s operations

22 CHAPTER 3: Bank s operations Deposit activity As of 31 December 2013, the deposit portfolio of the non-financial and public sector amounted to K PLN, which was up by K PLN from The biggest growth was recorded in the deposit portfolio of the non-financial sector, with dynamics of 119%. The structure of the deposit portfolio of the non-financial and public sector is presented in the table 10. Foreign currency services With regard to foreign currency services, in 2013 SGB- Bank effected international money orders to be paid abroad, and international money orders originating from abroad in the bank accounts of clients of SGB-Bank and associated cooperative banks, which translated into an increment by 21.4% and 16.3% respectively compared to Factoring and leasing services Like in previous years, SGB-Bank S.A. in collaboration with FAKTORZY S.A. offered its clients financial services in the form of factoring. The contracts concluded as of the end of 2013 with SGB-Bank S.A. clients amounted to K PLN. SGB-Bank S.A. also continued its collaboration with SGB-LEASING Sp. z o.o., offering clients financial se- Table 9. Credit portfolio of non-financial and public clients of SGB-Bank S.A. as of (in K PLN) Table 10. Deposit portfolio of non-financial and public clients of SGB-Bank S.A. (in K PLN) The number of accounts kept for institutional clients as of the end of 2013 amounted to S 22 CHAPTER 3: Bank s operations

23 CHAPTER 3: Bank s operations rvices related to leases. At the end of the year, the contracts concluded by SGB-Bank S.A. amounted to net K PLN. Product-related activities With regard to product range development, activities were continued to incorporate the assumptions of the product platform. The key elements of the product platform include: Consumer Protection. Moreover, the regulations on Individual Retirement Accounts (IKE) were updated. Actions were undertaken to increase the number of payment cards issued as well as the number of card transactions, including development of contactless payments, e.g. through competitions for the clients of SGB banks issuing payment cards. 3.4 Treasury activities choice of products for individual segments, modernisation of the product range, improvement of the customer service processes, reinforcement of product sale support elements. With regard to credit regulations, they were revised and adapted to the applicable external regulations. The regulations were amended to put them in line with the new Recommendation S. Changes were introduced in the crediting process in the field of monitoring. Moreover, point scoring was introduced in economic and financial spreadsheets. Regulations regarding lending to cooperative banks and establishing securities were updated and modified. Due to the change in the regulations of collaborating institutions and external provisions, sample loan agreements and regulations on special loans were updated as needed. 3.3 Retail banking In terms of retail banking, internal regulations were amended to account for the implementation of 3D Secure solutions, which enable secure online payments. Regulations were also adapted to the requirements of the amended Payment Services Act (PSD) through modifying regulations on account keeping, issuing cards linked to accounts and internet banking services, as well as charge, credit and prepaid cards for individuals. In terms of consumer protection, internal regulations were reviewed to ensure compliance of their provisions with the applicable legal regulations, including elimination of any abusive clauses, and (with regard to crediting regulations for individuals) to implement the provisions of the amended Recommendation T and Recommendation S of the Polish Financial Supervision Authority and the recommendations from the Report on the inspection of enterprises extending consumer loans in 2012 of the Office for Competition and The treasury activities of SGB-Bank S.A. in 2013 were aimed primarily at securing the liquidity of the Bank and the whole Association and at investing surplus funds in the financial market. The activity of SGB-Bank S.A. in this area involved mainly investing the available funds in debt securities and interbank deposits. The securities portfolio contained predominantly State Treasury securities and NBP money bills (79% of the securities portfolio as of the end of 2013), and compared to 2012 their share increased over commercial papers. The change in the portfolio structure was influenced by changes in the interest rate market, with the yield curve significantly steepened. As a consequence, the Bank invested a considerable chunk of the 2013 surplus funds in Treasury bonds. In 2013, the Ministry of Finance did not issue Treasury securities. The balance of Treasury bonds as of was K PLN, up by 61.5% compared to The balance of money bills was K PLN, up by 29.3% from the year before. In 2013, SGB-Bank S.A. slightly increased its exposure in commercial debt securities, by issuing such papers and purchases in the secondary market. As of 31 December 2013, the value of commercial papers in the Bank s portfolio amounted to K PLN, which was up by 2.9% from the year before. The balance of municipal bonds at the year-end reached K PLN and was lower from the figure for 2012 by 5.1%. Other securities held by the Bank were participation units in investment funds, with the combined value of assets placed in open- and closed-end investment funds at the end of the year amounting to K PLN. S 23 CHAPTER 3: Bank s operations

24 CHAPTER 3: Bank s operations Table 11. Assets managed by the Treasury Department as of at carrying values (in K PLN) Chart 6. Structure of assets placed in the financial market by SGB-Bank S.A. as of % 26% 2% 2% 4% Non-treasury securities placement In 2013, SGB-Bank S.A. continued its presence in the non-treasury securities placement market. Fourteen issues of municipal bonds were placed, amounting to K PLN, and 8 issues of corporate bonds amounting to K PLN (decrease in value by 27.1% compared to 2012). 50% State Treasury Bonds (together with BGF) Money bills Municipal bonds Other securities SGB-Bank S.A., acting within the scope laid down in the Articles of Association, concluded transactions with cooperative banks and other clients regarding non-treasury securities. In 2013, commercial and municipal papers sold to the clients at par totalled K PLN, as of 31 December 2013 the value of commercial papers issued by SGB-Bank S.A. in the Bank s portfolio amounted to K PLN, and that of municipal bonds K PLN. Commercial papers Interbank deposits In 2013, SGB-Bank S.A. was not very active in the interbank market. The balance of interbank deposits as of 31 December 2013 was K PLN, including K PLN in foreign currency deposits. Compared to 2012, the balance of deposits was down by 29.3%. SGB-Bank S.A. offered its clients with significant surplus funds an opportunity to invest them in the Bank in the form of SKARB deposits [treasure], with the interest rates negotiated individually with reference to interbank quotations. In 2013, a total of deposits were taken for terms from 1 day to 1 year. As of 31 December 2013, the balance of SKARB deposits was K PLN. The funds invested in the financial market as of 31 December 2013 accounted for 50.3% of the balancesheet total (42.6 as of the end of 2012). S 24 CHAPTER 3: Bank s operations

25 CHAPTER 3: Bank s operations 3.5 Cash management Clearing services In 2013, nearly 115 million electronic payment orders were cleared and more than 69 million underlying documents processed in transactions made with clients payment cards, at ATMs and in customer service outlets of Spółdzielcza Grupa Bankowa (up by more than 30% from 2012). In February 2013, the transaction module LOKATY SGB was implemented the banks active deposits were transferred as well as the administrative module managing authorisation levels of some active users SGB employees. Handling bank accounts, deposit transactions and foreign exchange transactions with cooperative banks The Finance Department handled a total of 489 bank accounts, including: for SGB cooperative banks 206 current accounts, 14 auxiliary accounts, 239 loro accounts in EUR/USD/GBP and 30 accounts for non-associated cooperative banks. At the end of 2013, nearly term deposit accounts of cooperative banks were held, including 313 in foreign currencies. The total amount of PLN deposits made by cooperative banks as of the year-end was K PLN. In 2013, non-cash foreign currency buy/sell transactions concluded with SGB cooperative banks were cleared. Trust services In June 2013, production deployment took place of SGB- Bank S.A. to the new system RTGS SORBNET2. The functional and IT solutions adopted at SGB-Bank helped to eliminate the necessity to amend the operational and clearing systems used by the SGB cooperative banks. FX transactions With regard to FX transactions, in 2013 SGB-Bank S.A. transacted with clients in 483 foreign exchange spot transactions amounting to K EUR and K USD, as well as 21 foreign exchange term transactions totalling K EUR and K USD. The Bank provided depository and financial services with regard to securities for which the Bank acted as the Custodian Bank and Paying Agent. In 2013, there were 10 issuers who redeemed 65 series of bonds before maturity to a total of K PLN. As of the end of 2013, services are provided to 54 issuers: 33 local government units and 21 enterprises, including bond issues for cooperative banks associated with SGB-Bank S.A. (in October 2013 the Bank took over from DM AmerBrokers S.A. in placements organised by the broker for 7 associated cooperative banks). The total value of bonds at par registered in accounts amounted to K PLN, including respectively: K PLN in clients accounts and PLN in the Issuing Agent s account. At year-end, there were 77 clients accounts in which non-treasury securities were held. S 25 CHAPTER 3: Bank s operations

26 CHAPTER 4 SUPPORT AREAS 4.1 Development of distribution channels Changes in Information Technology Changes in processes and products 30

27 CHAPTER 4: Support areas 4.1 Development of distribution channels Regarding services for cooperative banks: Distribution channels Branches As of 31 December 2013, SGB-Bank S.A. operated through 24 outlets, which comprised 22 Branches and 2 Financial Business Centre Branches. at 191 cooperative banks account access via the Web channel was launched, for 7 cooperative banks account services were provided within the framework of SGB-Online banking. The above solution was used by a total of clients of 7 cooperative banks, including retail clients and corporate clients. Def3000 Electronic Channels Payment cards In 2013, the clients of 2 SGB cooperative banks were migrated to the Electronic Channels def3000 (a total of clients). New migration tools were used, which made it possible to migrate without switching off the access to the Electronic Channels for banks clients using def3000. At the end of December 2013, the number of cards active across SGB amounted to more than 550 thousand. In 2013, the implementation of online authorisation system continued at cooperative banks. Online authorisation was available at 192 cooperative banks. Online banking def3000 as of 31 December 2013 was used by retail clients and 798 corporate clients of SGB-Bank S.A. The total number of clients (of both SGB- Bank and cooperative banks) using Electronic Channels was ( retail clients and corporate clients). As of 31 December 2013, the number of clients of SGB- Bank S.A. using electronic channels amounted to and was up from by o clients (as of the number was 7 600). At the same time, account saturation with electronic channels as of 31 December 2013 was 46.22%, which is up from the figure from the year before by close 12 per cent (as of it was 34.33%). The total number of payment card transactions in SGB in 2013 exceeded 30 million (of which nearly 13 million were non-cash transactions) amounting to a total of more than 8.5 billion zlotys (of which more than a billion zlotys in non-cash turnover). The number of payment cards issued by SGB increased in the course of the year by , from cards issued at the end of 2012 up to as of 31 December 2013, corresponding to annual dynamics of %. In 2013, the 3D Secure service used to secure online transactions was deployed into production. As a result it was possible to open all cards issued by SGB-Bank S.A. to the Internet, and consequently increase the transaction Table 12. Number of cards and value of transactions conducted with SGB cards in S 27 CHAPTER 4: Support areas

28 CHAPTER 4: Support areas Table 13. Number of SGB ATMs and overall number of transactions in years Table 14. Average monthly numbers of transactions per ATM in years rate for cards which could not be used to date for online transactions. In order to increase the security of card transactions, in Q2 of 2013 a new PRM card transaction monitoring system was implemented. It is a 24/7 real-time system which automatically rejects authorisations or blocks the card and generates alerts which facilitate ongoing transaction monitoring in collaboration with SGB banks. ATMs and POS terminals In 2013, 55 new ATMs were installed across the Association. The number of ATMs in the SGB network as of 31 December 2013 was machines. The majority of ATMs are located in banking facilities, but some were also installed in commercial complexes and shopping centres. Currently, there are 237 ATMs not adjoining a banking facility (20.2% of all SGB ATMs). In an attempt to increase the appeal of cards offered by SGB-Bank S.A., new consistent visual design was developed for all cards in The first cards to be issued with the new design in 2013, were Visa Electron young edition, Visa Business Electron. Maestro and MasterCard Paypass. In order to expand the card range offered to banks, in 2013 implementation projects were conducted for MasterCard Business Paypass for businesses, MasterCard Paypass Gold credit card, MasterCard Paypass KKS Lech account-linked card for football fans and the local SGB card for cash withdrawals at SGB ATMs. In total, within the framework of the agreement initiated by SGB-Bank S.A. with Bank Polskiej Spółdzielczości S.A. in Warsaw and with Krakowski Bank Spółdzielczy, as of 31 December 2013 the Cooperative ATM Network comprised machines nationwide. As of 31 December 2013, at SGB facilities there were a total of 55 POS terminals used to withdraw cash. Moreover, collaboration of cooperative banks with FDP S.A. continued with regard to POS terminals installed in commercial complexes run by the clients of cooperative banks (SGB Association offering). S 28 CHAPTER 4: Support areas

29 CHAPTER 4: Support areas Phone services and support as part of e-banking CallCenter deployment of tools for generating NB300 forms in reporting systems. Within the framework of e-banking, SGB-Bank S.A. offers support via a call center open Monday to Friday from 8 a.m. to 10 p.m. The call center deals with enquiries regarding technical support, information and assistance in online banking transactions, as well as those related to the current offering of the Association. In 2013, the Call- Center handled phone enquiries, of which approx. 83% were concerning electronic banking. 4.2 Changes in Information Technology In terms of software production: production deployment of the LokatySGB system to handle zloty and foreign currency deposits of cooperative banks. production deployment of the ZleceniaZagraniczneSGB system to handle international FX transactions for clients of banks within SGB Group, development and implementation of the Centralna Baza Kursów automated system generating and distributing exchange rate tables based on external sources integration with Telekurs, adaptation of the Baza Zabezpieczeń application to the requirements of Recommendations J, S and T, production deployment of the SferaSGB system for automated file exchange within the SGB Group, integration of the Analytical Module with the data warehouse def3000/mis. In terms of systems used in the Association: production deployment of 3D Secure system for secure card transactions, increasing the reliability and capacity of the Gryfcard database infrastructure by changing the architecture to Oracle Real Application Cluster, designing changes to the card systems related to DCC service, designing the Instant Payment System, design and requirements specification of Western Union clearing system, implementation of SORBNET2 clearing systems, drafting assumptions and signing the agreement regarding the integration project of the Group s banking systems with the CasePro system, In terms of network infrastructure in place at SGB-Bank and its security: SolidRac. implementation the system for managing, controlling and increasing the security of remote connections used to provide IT maintenance at SGB-Bank by third parties, deployment of data connection backup based on 3G wireless technology as a standard solution; 3G connections cost less than the ISDN-based backup connections used previously, make the backup process independent of terrestrial infrastructure as well as having a much higher data flow capacity; the solution was implemented at SGB-Bank facilities and is used as backup connection for Cooperative Banks, if possible, introducing wireless internet access (WiFi) at the head office of SGB-Bank, implementation of Fudo; a system for recording remote maintenance sessions. In terms of databases and application servers database upgrade to Oracle 11g; the works were performed for databases in the production system and test environments of def3000 as well as in the International Orders system. upgrade of the Gryfcard environment; the purpose was to boost reliability, increase data security and guarantee capacity of the hardware-database solution, implementation of the OSB service bus with RAC database in a configuration that ensures redundancy and high availability; the purpose of OSB implementation is to build a modern, secure and high-performance platform for inter-system data exchange in order to integrate applications at SGB Association and external applications, migration of the KE AMG.net database to a cluster solution RAC, including a change in the operating system to AIX; the purpose of the migration was to enhance system security and continuity, consolidation of Oracle Standard databases; consolidation activities were aimed at reducing support costs and making effective use of the licences held, deployment of WebLogic application servers S 29 CHAPTER 4: Support areas

30 CHAPTER 4: Support areas and replacement of OAS in def3000, implementation of WSRR repository test environment and separation of the def3000 production environment from the test and migration environments; the works were aimed at enhancing the security of production systems, def3000 updates: from version 8.5A to 8.5B with other modules, from version 8.5B to 8.5C with other modules, due to business requirements. The MasterCard prepaid card for institutional clients was introduced into the bank s offering. Moreover, following the deployment of 3D Secure, which enabled secure online card payments, all SGB cards can be used to pay online. With regard to insurance services, an Association insurance agreement Secure Card and Travel Insurance was signed with Concordia Polska TUW insurance offering dedicated to payment card holders and banking risk insurance. 4.3 Changes in processes and products Processes and tools New products on offer from the Bank In 2013, activities continued to develop the SGB-Bank S.A. product range in terms of banking and auxiliary products. Due to the deployment of new products and upgrading the existing products, the applicable regulations were drawn up. Based on the ongoing monitoring of the competitive environment, the bank responded to changes in the market, e.g. changing fees related to account management. In terms of the offering to farmers, a new credit facility was introduced SGB Agro investment loan and the existing products dedicated to farmers: SGB Agro overdraft and SGB Agro revolving credit were modified. Moreover, a new functionality was introduced in the revolving credit facility, i.e. SGB Agro limit. Additionally, within the framework of preferential loan offering with the aid of the Agency for Restructuring and Modernisation of Agriculture, the so-called disaster revolving credit facilities were introduced with interest rate subsidies applied de minimis, designed to relaunch production on farms and in special branches of agricultural production which had been affected by damage due to unfavourable weather conditions. As of March 2013, SGB Banks may secure revolving credit facilities extended to micro, small and mid-sized enterprises with de minimis guarantees of Bank Gospodarstwa Krajowego. As of November 2013, de minimis guarantees can also be used to secure investment loans extended to SMEs. The special product portfolio was extended to include loans subsidised by the National Fund for Environmental Protection and Water Management intended for the construction of energy-efficient housing. The RUBINET program was implemented at SGB-Bank S.A. an on-line program to handle sales of insurance products of Concordia Ubezpieczenia as well as a new Goniec on-line system to handle investment funds managed by Union Investment TFI S.A., The implementation project of the lending process support system CasePro was continued; automation of subsequent products was implemented in the System (investment loan), and works related to the implementation of more products were completed (revolving facility in personal current account, working capital facility in current account). Moreover, implementations made in CasePro included the recommendations from the Report on the inspection of enterprises extending consumer loans in 2012 of the Office for Competition and Consumer Protection (re. presenting the overall loan amount and the actual annual percentage rate) and the amended provisions of Recommendation T of the PFSA (expanding the scope of parameters which may affect the DtI index, as well as applicable changes in the System decision engine). The CasePro was deployed in subsequent SGB cooperative banks, and cooperation agreements were concluded with 6 cooperative banks. IT functionalities related to preferential loans subsidised by ARMA (SI-OKP) were expanded to include online capability for lending campaign limits and interest rate subsidies to the socalled disaster loans, due to the changes introduced by ARMA in the lending process, A customer relationship management system, Mój Klient CRM, was deployed at SGB-Bank S.A., Within the framework of the agreement concluded by SGB-Bank S.A. to use and sublicense to the interested CBs, the PONT Info-Gospodarka system. S 30 CHAPTER 4: Support areas

31 CHAPTER 4: Support areas Sales support tools were updated, including loan calculators, to take into account e.g. changing regulations and factors used in the tools, Intranet and Internet page content was reviewed and developed. Activities continued to expand the functionality of Def3000 to include new printouts related to managing bank accounts. Spreadsheet functionalities used in credit scoring of institutional clients were developed. Communications One of the key communication projects is the development of a new intranet platform which will significantly boost the quality of communications between cooperative banks and SGB-Bank as well as within the Bank. All activities conducted by the communications team aim to promote cooperative values, build a positive image of cooperative banks in nationwide media and support the cooperation of cooperative banks and regional media. In 2013, Public Relations activities were planned, to be implemented in 2014, with the aim of emphasising the involvement of cooperative banks in building the local social capital and reinforcing their positive image with the clients as well as the local media. To a large extent, these activities are also aimed at prospective clients. These activities will make it possible to continue the image campaign, leaving more room for product promotion in conventional marketing campaigns. Management by Objectives In 2013, the Bank started implementing the Management by Objectives approach. The program is aimed at regulating the use of limited resources by abandoning activities which do not support pre-defined priorities. Within the framework of the program, the Bank Strategy was analysed and the Management strategic goals were defined. Workshops were also conducted for department heads, their deputies and office managers, with the aim of communicating Management goals to all the program participants. Project Portfolio Committee The role of the Project Portfolio Committee, as an opinion-forming and decision-making body, is to optimise the resources used in projects executed by the Bank. The Committee issues recommendations and decisions in the form of opinions on matters concerning launching projects, approving objectives, project parameters, changes to projects, opening new stages and completing projects. In 2013, the Committee held 15 meeting, including one matter settled in paper form. In the course of the year, 12 new projects were launched, 14 projects were completed, whereas 25 projects (as of ) were in pending status. S 31 CHAPTER 4: Support areas

32 CHAPTER 5 RISK MANAGEMENT 5.1 Goals and principles of risk management Credit risk Liquidity risk Interest rate risk Currency risk Operational risk Capital adequacy, own funds and capital adequacy ratio Internal capital (Second Pillar) Committee Activities 39

33 CHAPTER 5: Risk management 5.1 Goals and principles of risk management In 2013, as part of systematic verification of bank risk management procedures an update was performed of regulations applicable in the Bank regarding all the risk areas monitored at SGB-Bank S.A., including but not limited to the changes which were introduced in external regulations at the time. The previous structure of credit risk procedures was expanded to include new regulations: Management principles for risk identification and measurement models, Generic credit scorecard documentation, Farmer s generic credit scorecard documentation and Generic rating card documentation. 5.2 Credit risk The total loan exposures extended to natural persons was up (by 1.23%); the share of non-performing loans in the consumer portfolio went down by 0.9 per cent and now amounts to 3.27%; with regard to the Bank s acceptable level of credit risk for natural persons planned for 31 December 2013 (4.5%) the figure is in the normal range. The value of loan exposures extended to business entities increased by 3.32%. The quality of the business loan portfolio deteriorated non-performing loans now account for 14.57%, up from 10.98% at the end of the year before; with regard to the Bank s acceptable level of credit risk for business entities planned for 31 December 2013 (12.0%) the quota have been exceeded. In 2013, the credit portfolio maintained a level comparable to that of 2012, while non-performing loan exposures increased by 36.60%. The structure of credit risk in the non-financial and public sector portfolio is presented in the table below. The share of provisions in non-performing receivables amounted to: in the substandard category 1.91%, doubtful 10.64%, loss 57.17%; provisions for non-performing receivables account for 29.36% of non-performing receivables. The share held by non-performing loans in the overall loan portfolio went up from 7.95% to 10.91% (non-performing loans in the loan portfolio of non-financial and public entities went up from 8.52% to 11.41%). The value of non-performing loans of business entities increased from K PLN to K PLN, i.e. by 37.12%, whereas non-performing loans of natural persons decreased from K PLN to , i.e. by 21.11%. Receivables in the special mention risk category as of 31 December 2013 accounted for 2.86% of the loan portfolio and maintained a similar level throughout 2013 (between 3.7% and 4.5 %); as a result of monitoring activities, a significant number of business entities were reclassified. Exposure concentration and large exposures limits defined under the Banking Act were not exceeded; as of 31 December Table 15. Share of non-performing loans in receivables from the non-financial and public sector 2012 and 2013 S 33 CHAPTER 5: Risk management

34 CHAPTER 5: Risk management 2013 the total exposures exceeding 10% of own funds was under the threshold. The value of syndicated loans compared with the same period of the year before was up by 10.82%. The increase of total syndicated loans was accompanied by an increase of impaired syndicated loans compared to by 48.11%. The Bank has no significant capital employed in MBCE, MBCE financing residential real estate, MBCE financing commercial real estate or RCE-T it was up by per cent, whereas RCE-T loan repayment ratio reached 20%. The Bank applied exceptions on a very small scale it granted 5 such MBCE and 5 such RCE-T in the period from The dynamics of the MBCE portfolio were negative, though it was due to a redefinition of MBCE, with the dynamics of impaired MBCE being positive non-performing loans went up by 2.93%. The dynamics of the RCE and RCE-T portfolio and impaired RCE and RCE-T were negative, though it was due to a redefinition of RCE and partial sale of the individuals portfolio. MBCE account for: 27.26% of the balance-sheet total; compared to analogous period of the year before their share went down by 2.35 per cent, 50.79% of the credit portfolio; compared to the year before their share increased by 5.94 per cent. RCE-T account for: 0.28% of the balance-sheet total and compared to their share went down by 0.03 per cent, 0.51% of the credit portfolio and compared to their share was up by 0.05 per cent. RCE account for: 2.68% of the balance-sheet total and compared to their share went up by 0.03 per cent, 4.99% of the credit portfolio and compared to their share was up by 0.22 per cent. In the analysis of the MBCE and RCE portfolio as of 31 December 2013, one should note that the new Recommendation T entered into force as of , and the new Recommendation S as of The general MBCE, RCE and RCE-T limits as specified in Mortgage-backed credit exposures (MBCE) risk management policy and Retail credit exposures (RCE) risk management policy were not exceeded. Exposure concentration limits in the MBCE, RCE and RCE-T portfolios were not exceeded. The Bank s risk profile measured by the weighted LtV ratio at portfolio level is moderate (the portfolio weighted LtV, despite changing the computation methodology, deteriorated slightly). With a view to improving the credit risk monitoring system and mitigating this risk, the following activities were undertaken in 2013: credit risk policy was modified with regard to: retail credit exposures, mortgage-backed credit exposures and management principles for credit, concentration and residual risk, new quantity and quality targets were set for RCE, RCE-T and MBCE, limits related to MBCE, RCE, RCE-T and other limits of the credit portfolio had their scope expanded and values modified, implementation was continued of software supporting the lending procedures for clients of cooperative banks and SGB-Bank S.A. production versions of CasePro have been installed in 3 cooperative banks and SGB-Bank S.A., In 2013, the Credit Risk Team, whose objectives include monitoring credit risk and recommending measures aimed at managing this risk, convened 11 times to analyse issues including but not limited to: verifying lending procedures to include more detailed and stricter requirements, identifying the reasons for deterioration of the credit portfolio (analysis of various credit reports, vintage analysis), verifying existing limits and introducing new ones. The loan repayment ratio for the MBCE portfolio divided into loans secured by mortgage, pledge and transfer of title amounted to more than 50%, compared to Q4 of S 34 CHAPTER 5: Risk management

35 CHAPTER 5: Risk management 5.3 Liquidity risk Supervisory liquidity measures of the Bank stayed above the statutory minimal levels throughout In 2013, SGB-Bank S.A. made sure that the associated cooperative banks maintain an adequate level of supervisory liquidity measures through: recommending the course of action for the Bank regarding planned capital investments. coordinating works and exercising supervision over tasks delegated to certain organisational teams and units of the Bank with regard to liquidity risk management. 5.4 Interest rate risk granting overdraft limits, granting revolving credit limits, extending subordinated loans Granting overdraft and revolving credit limits to cooperative banks had a significant impact on the structure of contingent liabilities extended, whose total amount as of the end of the year reached K PLN. The interest rate risk management included the repricing risk, base risk, yield curve risk and client option risk. In 2013, the Bank shaped the structure of its interest-bearing assets and liabilities, as well as contingent liabilities generating potential interest rate risk taking into account the current trends in interest rate fluctuations in the market. The overall liquidity risk in 2013 did not exceed the Bank s overall tolerance of such risk. In the whole 2013, the Liquidity Management Team which monitors short-term liquidity risk convened 51 times to analyse the following issues: monitoring the current liquidity position for the Bank, controlling the current liquidity position for the Bank against the projected position, determining the administrative, organisational and technical conditions necessary to manage liquidity in an accurate, consistent and effective manner, Changes in the structure of interest-bearing assets and liabilities and contingent liabilities generating potential interest rate risk observed in 2013, as well as the changes in market interest rates contributed to increasing the impact of interest rate variability on the interest performance over the 12-month period. The Bank s potential exposure to interest rate risk in 2013 was significant. The internal limits established for this risk were maintained, but Bank s overall tolerance of such risk was exceeded. Chart 6. Supervisory liquidity measures in 2013 S 35 CHAPTER 5: Risk management

36 CHAPTER 5: Risk management Table 16. Supervisory liquidity measures as of Chart 7. Structure of interest-bearing assets and liabilities at reference rates as of (in K PLN) 5.5 Currency risk In the course of 2013, a slight increase in currency activities was noted. The number of EUR loans was on the up, as were the balances of current accounts. Table 17. Contingent liabilities extended as of (K PLN) The Bank maintained a policy of closing out currency positions on a current basis. The capital requirement against currency risk emerged in January, June and July. The foreign exchange team, whose objectives include monitoring currency risk and recommending measures aimed at managing this risk, convened 13 times in 2013 (including one matter settled in paper form) to analyse issues including but not limited to: balance analysis in nostro accounts, balance analysis in deposits, analysis of results on foreign exchange differences, report on individual currency items, currency risk analysis. 5.6 Operational risk The objective of operational risk management was to minimise operational losses and reduce the probability of operational events that may result in losses. The limit of the capital requirement against operational risk in 2013 amounted to: 8.0% of the available capital up to October and 5% of the available capital as of November. The actual capital requirement against this risk ranged between S 36 CHAPTER 5: Risk management

37 CHAPTER 5: Risk management 4% and 4.5% of the available capital in the course of the year. Operational events in the Bank were recorded in line with the classification provided in Recommendation M, i.e. in 7 categories, of which a significant number of events was recorded under 2 categories, i.e.: Business Disruption and System Failures (cat.6), Execution, Delivery and Process Management (cat.7). Out of a total of 147 recorded events throughout the year, 68% fell into the two categories mentioned above. At the same time, the number of recorded events fell by 15.5 % compared Chart 8. Mismatching of repricing dates of interest-bearing assets and liabilities as of (in K PLN) Table 18. Impact of interest rate variability by +/- 2 p.p. on the interest performance. Impact in 2013 presented in absolute terms in K PLN Table 19. Foreign currency current accounts and term deposits in K PLN Table 20. Foreign currency credit portfolio in K PLN *As of , the foreign currency credit portfolio also includes contingent liabilities, including guarantees and sureties granted S 37 CHAPTER 5: Risk management

38 CHAPTER 5: Risk management to 2012 (174 events). This could be related to the change of management methodology for operational risk and the change of support system for operational risk management. The operational losses recorded in 2013 amounted to gross K PLN, of which K PLN was recovered, hence net losses finally amounted to K PLN. 5.7 Capital adequacy, own funds and capital adequacy ratio The capital adequacy ratio reached 12.29% and compared to the year before went up from 10.35%, i.e. by 1.94 per cent. The increase of the capital adequacy ratio from the year before was due to reducing the overall capital requirement by 0.5%, coupled with an increase of own funds by 18.5%. Own funds went up in the period from December 2012 to December: in authorised capital by 31 M PLN, in supplementary capital and capital reserve by 20.2 M PLN, in revaluation fund by 0.6 M PLN, subordinated liabilities by 49 M PLN, as a result of PFSA s approval of January 2013 to regard the subordinated liabilities issued in 2012 to the amount of 20.6 M PLN and in December 2013 amounting to 46 M PLN as funds. At the same time, the existing liabilities were reduced by 17.6 M PLN, of which 14.0 M PLN result from the depreciation of banking commercial papers included in funds and 1.9 M PLN from the depreciation of a subordinated loan received from Credit Cooperatif and 1.7 M PLN of a subordinated loan received from CoopEst. The total capital requirement as of 31 December 2013 amounted to M PLN which was down by 0.9 M PLN from the figure as of The capital requirement was affected most by the credit risk requirement, which as of end December 2013 amounted to M PLN, down by 3.8 M PLN y/y. In turn, the requirement against operational risk was up y/y by 3.7 M PLN. At the end of 2013, there was no requirement against currency risk, compared to 1.4 M PLN the year before. Because the overall capital requirement was maintained at a similar level to the year before, while at the same time own funds went up, the capital adequacy ratio improved. Table 21. Number of operational events per category Table 22. Sum of operational losses in S 38 CHAPTER 5: Risk management

39 CHAPTER 5: Risk management 5.8 Internal capital (Second Pillar) The Bank s internal capital was calculated according to a procedure developed in-house regarding internal capital assessment and maintenance. At the end of Q1, Q2 and Q3 of 2013, the internal capital was equal to the regulatory capital from the First Pillar. As of the end of Q4, the Bank maintained additional internal capital against credit risk and interest rate risk in the banking book to a total of K PLN and the internal capital exceeded the regulatory capital by that amount. The limits on allocation of available capital to capital requirements against respective risk categories were not exceeded at year-end. 5.9 Committee Activities Asset/Liability Committee ALCO In 2013, the ALCO Committee convened 18 times (including 3 matters settled in paper form). During the meetings, the Committee issued recommendations regarding selected items of assets and liabilities, income statement, economic ratios of the Bank and Association, introducing new banking products, deposit / loan strategy, client orders involving large amounts and petty cash limits, internal capital requirement, credit risk, liquidity risk, interest rate risk, currency risk, operational events and losses, outsourcing and other. Credit Committee In 2013, the Credit Committee convened 69 times, to consider 429 credit applications amounting to a total of K PLN. Credit approvals were granted in 110 cases totalling K PLN, while 60 credit applications totalling K PLN were recommended to the Management Board. In the case of 141 applications, totalling K PLN, the Credit Committee modified the lending terms offered, such us the margin, commission, form of loan security, or rescheduling loan repayment dates. At the same time, the Credit Committee approved 17 matters related to bond acquisition, extending guarantees or other non-standard products, to a total of K PLN. Operational Risk Committee In 2013, the ORC convened 6 times to assess reports on operational events and losses and to issue recommendations on those sections of the reports that indicated high business risk areas. S 39 CHAPTER 5: Risk management

40 CHAPTER 6 INTERNAL AUDIT / CONTROLS SYSTEM 6.1 Internal audit Internal control Examination of the Bank s compliance with legal provisions and internal regulations 41

41 CHAPTER 6: Internal audit / controls system The internal control system designed and implemented at SGB-Bank S.A. operated in compliance with the requirements of external regulations in The basic elements serving the system were internal controls and internal audit and compliance test of the Bank s operations with legal provisions and internal regulations. 6.1 Internal audit The framework of internal audit included systems, processes, activities and phenomena which might have had a negative impact on the Bank s situation. In 2013, internal audit performed tasks according to the audit plan approved by the Supervisory Board and Management Board and also conducted unscheduled internal audits as requested by the Bank s Governing Bodies on an as-needed basis. Internal audits provided a cross-section of both the Departments at the Bank s Head Office and the Branches. In total 25 internal audits were conducted in the Bank in 2013, involving all units and most organisational entities. The irregularities uncovered in the course of the audits had a negligible impact on the Bank s risk levels. If any errors were discovered in the functioning of control mechanisms in the course of an internal audit, appropriate recommendations were issued, the implementation of which was then monitored on an ongoing basis and assessed independently. pursuant to external requirements, the internal audit function was subject to an independent external evaluation as of Internal control Internal control in the Bank is exercised by each member of staff (current checks), entity/unit managers and people appointed by them, Bank s Head Office staff (checks at Bank s Branches) and by the Internal Control Coordinator (scheduled or ad hoc checks). In 2013, throughout the Bank 687 scheduled internal checks took place (including 490 in the Branches and 197 at the Head Office). The checks covered all areas of the Bank s business. Scheduled internal checks were conducted on a continuous basis. Irregularities uncovered in the course of an inspection were remedied immediately or as a result of implementing issued instructions and recommendations. None of the irregularities uncovered in the course of internal checks met the criteria of a significant irregularity, which could contribute to increasing the level of business risk. The Management Board and Supervisory Board received periodic reports on the findings of internal controls and on the steps undertaken to remedy the irregularities uncovered. Adequacy and effectiveness of the internal control system in place was subject to annual evaluation by the Bank s Governing Bodies. Within the framework of its associational role, SGB-Bank S.A. continued to provide internal audit services to the associated cooperative banks in Internal audits covered all significant risk categories identified at the associated cooperative banks. In total in 2013, SGB-Bank S.A. conducted 279 internal audits at 155 associated cooperative banks. Compared to 2012, the interest of the associated cooperative banks in these services continued to grow, with 75% of the associated cooperative banks involved as recipients. 6.3 Examination of the Bank s compliance with legal provisions and internal regulations SGB-Bank S.A. strives for compliance in its business. Compliance processes included all the organisational units and bodies of the Bank (within their scopes of competence and duties), Relations Department (up to May 2013, Organisation and HR Department) and the Legal Offices providing services to the Bank. All employees of the Bank were bound by the duty to prevent, identify and mitigate the risk of non-compliance. The Management Board and Supervisory Board received periodic reports on the findings of internal audits and on the steps undertaken to remedy the irregularities uncovered. The adequacy and effectiveness of internal audit was assessed by the Bank s Governing Bodies, and additionally, Identification of non-compliance events indicating the risk of non-compliance was a continuous process at the Bank, based on current and interim information received from the organisational units and entities, operational risk event database, complaints register, register of transactions recorded pursuant to the provisions on anti-money laundering and counter-terrorism financing, check and audit follo- S 41 CHAPTER 6: Internal audit / controls system

42 CHAPTER 6: Internal audit / controls system wup reports (internal control), inspection reports (external control) as well as information regarding changes in legal regulations, judicial decisions, ongoing court cases, adjudicated costs, potential litigation, etc. In the period 01 January 31 December 2013, a total of 53 non-compliance events were recorded with regard to the content development of internal regulations and 140 non-compliance events in the business conduct of organisational units and entities. As a result of activities undertaken to eliminate or mitigate the potential risk, 34 internal regulations were amended or invalidated. S 42 CHAPTER 6: Internal audit / controls system

43 CHAPTER 7 FINANCIAL PERFORMANCE

44 CHAPTER 7: Financial performance As of 31 December 2013, own funds of SGB-Bank S.A. amounted to K PLN, which was up from the figure for the end of 2012 by K PLN. The main factor behind the boost of own funds was the increase of authorised capital by K PLN and allocation of K PLN from the financial result of 2011 to the funds. Moreover, subordinated liabilities were up by K PLN, when subordinated liabilities issued in 2012 to the sum of K PLN and in December 2013 to the sum of K PLN were transferred to funds in At the same time, the existing liabilities were reduced by K PLN, of which K PLN result from the depreciation of banking commercial papers and K PLN from the depreciation of a subordinated loan received from Credit Cooperatif and K PLN of a subordinated loan received from CoopEst. Details regarding changes affecting own funds are presented in the table below. Table 23. Changes affecting the amount of own funds (in K PLN) S 44 CHAPTER 7: Financial performance

45 CHAPTER 7: Financial performance Table 24. Basic reporting data and economic and financial ratios (in K PLN) The balance-sheet total as of the end of 2013 amounted to K PLN and compared to 2012 increased by K PLN, which was mainly caused by a 14% increase in funds deposited by financial entities, chiefly cooperative banks. Payables to financial entities accounted for 86.5% of liabilities and went up by 1.6 per cent from the year before. Payables to non-financial and public entities went up by K PLN which was due to higher balances in current accounts coupled with reduced term liabilities. Payables to non-financial and public entities accounted for 5.12% and were slightly down from the end of Surplus funds were deposited mainly in debt securities. At the end of 2013 they were up compared to the end of 2012 by 35%, i.e K PLN. As a result, the structure of assets unlike the year before contained a large share of debt securities, which went up from 39.1% to 47.1 %. In turn, total receivables from non-financial and public entities accounted for 38.4% of the balance-sheet total at the end of 2013, and compared to the year before went down by 4.6 per cent. In 2013, the credit portfolio for non-financial entities increased by 3.4%, while total loans for public entities decreased by 9.4%. Syndicated loans extended to non-financial and public entities went up to 43.5%, i.e. by 3.3 per cent. As an alterna- tive to lending activity, the bank can acquire corporate bonds issued by financial and non-financial entities. Their value as of the end of 2013 was up by K PLN from the end of 2012 and amounted to K PLN. Compared to 2012, the performance of loans to non-financial and public entities deteriorated. The ratio of non-performing loans to the whole credit portfolio went up from 8.52% to 11.65%. The change was brought about by an increase in non-performing loans by 37%, while the portfolio grew by 1%. Compared to the year before, the figure that increased the most was in the loss category of loans including several large credit exposures. In 2013, outlay on tangible fixed assets amounted to K PLN, of which 68%, i.e K PLN accounted for outlay on computer sets. At the same time, the gross value of fixed assets declined by K PLN due to liquidation or sale, involving e.g. the liquidation of Branches in Lublin, Łódź, Żyrardów and Oświęcim, as well as the sale of owned apartments and vehicles. Growth dynamics of the average balance of interest-bearing liabilities amounted to 118.5%, and the balance as of the end of 2013 reached K PLN up from S 45 CHAPTER 7: Financial performance

46 CHAPTER 7: Financial performance K PLN the year before. Interest-bearing assets increased by 17.0%, and the balance went up from K PLN to K PLN. Growth dynamics of the average balance of interest-bearing assets and liabilities is lower than the year before. settlement of premiums on the securities acquired. In 2013, to a higher extent than in preceding years, securities were acquired with premiums of longer maturities, hence the higher premium included in a given security. The lower result also stems from pricing of securities and declining market prices. In 2013, interest income was down by K PLN from the figure for the preceding year and amounted to K PLN. The lower interest income is a product of dropping interest rates and consequently, lower interest on assets. The interest rate on interest-bearing assets amounted to 4.59%. Even though in 2013 NBP rates fell by 1.75 per cent, the interest on assets decreased by 1.66 per cent. This is because at the beginning of the year some of the funds were deposited in longer-term assets (mainly bonds). Higher interest-bearing assets did not compensate for lower interest rates. Interest expenses were down by K PLN than in the preceding year and amounted to K PLN. The change was due to the lower average interest rate on liabilities by 1.79 per cent. The decline was steeper than the drop of NBP rates, chiefly due to high-interest deposits made in 2012 which reached maturity in The interest margin in 2013 reached 1.56% compared to 1.49% the year before. The interest span was 1.46% and compared to the preceding year it was up by 0.12 per cent from 1.34%. The result on banking activities compared to the preceding year was up by K PLN, amounting to K PLN. It was due to the net result on interest, which was up by K PLN, net result on currency items, up by M PLN, despite a decrease of K PLN in net income from commissions and a decrease of K PLN in net income from financial operations. The main reason behind a lower result from financial operations was higher expenses on negative differences to adjust for purchase price in excess of par of bonds issued by government institutions. The higher expenses result from the Administration costs including depreciation amounted to K PLN, down by K PLN from Cost savings include the drops in payroll expenses by K PLN, other administrative costs by K PLN and depreciation by K PLN. The most pronounced cost savings were realised in the cost of IT services, business entertainment and tangible services. The pre-tax result (EBIT) for 2013 amounted to K PLN, which was down by K PLN from the year before. The lower financial result was affected mainly by higher write-downs, despite the result from banking activities that was up by K PLN, and lower operating expenses and depreciation by K PLN. The ROA in 2013 amounted to 0.11%, ROE was 2.41%, and the net profit margin was 1.64%. Compared to the year before, the C/I ratio improved significantly C/I from 78.4% in 2012 to 66.0% in The capital adequacy ratio amounted to 12.29% and compared to the preceding year s ratio jumped by 1.94 per cent. A relative increase of the capital adequacy ratio compared to the year before emerged because own funds went up by 18.5%, while the total capital requirement dropped by 0.5%. In December 2013, SGB-Bank S.A. issued banking commercial papers to a total of K PLN, with maturity in November The placement was targeted to cooperative banks of Spółdzielcza Grupa Bankowa and its purpose was to increase the own funds of SGB-Bank S.A. In December 2013 these funds were included in the Bank s own funds as subordinated debt. S 46 CHAPTER 7: Financial performance

47 CHAPTER 8 FORECASTS AND PLANS 8.1 Macro environment and financial market forecasts Plans 48

48 CHAPTER 8: Forecasts and plans 8.1 Macro environment and financial market forecasts Economic growth 2.79% for 1W, 1M, 3M, 6M and 12M WIBID rates, as well as 2.62%, 2.63%, 2.87%, 2.92% and 2.99% for respective WIBOR rates. According to the Polish Central Statistical Office (GUS), unadjusted seasonally GDP growth in Q4 of 2013 amounted to 2.7% y/y (compared to 2.0% y/y in Q3). According to GUS data, the positive impact of domestic demand was reinforced and the impact of foreign demand on GDP growth continued to be positive and strong. The change in the structure of economic growth and better-than-expected macroeconomic data for Q4 of 2013 seem to augur an improvement in the economic outlook sooner than was expected even as recently as a few months back. It is anticipated that GDP growth in 2014 will be nearly twice as high as the year before and will reach 3.1% y/y. In 2015, GDP growth rate is set to reach 3.4% y/y. According to the Ministry of Labour and Social Policy, the unemployment rate in February 2014 remained at 14.0% and was lower by 40 basis points from February Employers are increasingly keen for new recruits. The registered unemployment rate is anticipated to drop to 13.2% in December Exchange rates of the Polish zloty to the euro and dollar In the first three weeks of March 2014, the zloty exchange rate was highly stable. The average exchange rate of the zloty at NBP was in the range of USD/PLN and EUR/PLN. The exchange rates of the zloty are harmed by the continued tapering of the quantitative easing policy by Fed, as a result of which capital flees from emerging markets to assets denominated in the US dollar and Swiss franc. On the other hand, the zloty is supported by positive macroeconomic data, suggesting accelerated economic growth in the coming years, as well as record-high performance of Poland s foreign trade. After a temporary weakening of the Polish zloty in Q1 of 2014, appreciation will soon become the dominant trend due to improving business outlooks. As a result, in December 2014, the zloty exchange rate will reach 4.12 EUR/PLN and 2.99 USD/PLN. International interest rates Inflation In the draft budget act for 2014 it was assumed that the average annual consumer price index will reach 2.4%. The actual inflation rate is likely to be much lower, though. This is because economic recovery is accompanied by low and stable inflation expectations, as well as low pressure on wages and costs. In light of these considerations, inflationary pressures in 2014 are anticipated to remain mild. The inflation rate will start growing slowly, but is set to exceed 2% y/y only in early Money market interest rates In mid-march 2014, 1W, 1M, 3M, 6M and 12M WIBOR rates amounted to 2.59%, 2.61%, 2.71%, 2.74% and 2.79%, and the WIBID rates respectively 2.39%, 2.41%, 2.51%, 2.54% and 2.59%. Rates in the interbank market have remained stable for months. Taking into account the statements from the MPC whereby NBP interest rates should remain stable in the long term, i.e. at least until the end of Q3 of 2014, it is anticipated the interbank rates at the end of 2014 will amount to 2.42%, 2.43%, 2.67%, 2.72% and The interest rates in the international interbank market remain stable, even though their levels are elevated in the European market due to the preparation of banks to stress tests announced by the ECB for this year. It is anticipated that LIBOR and EURIBOR rates at the end of 2014 will reach 0.23%, 0.31% and 0.41% for 1M, 3M and 6M EURIBOR, and 0.19%, 0.29% and 0.35% for 1M, 3M and 6M LIBOR USD. 8.2 Plans In 2014 and subsequent years, the Bank will strive to ensure the security and stable growth of the Bank and the Group, in line with the Bank and Group Strategy. Key activities aimed at ensuring the Group s security will focus on the implementation of CRD IV Directive and CRR Regulation. Implementation of the CDR IV/CRR package will determine the new business model for the Bank, based on even stronger cooperation with cooperative banks in areas including syndicated loans, treasury services and clearing services. S 48 CHAPTER 8: Forecasts and plans

49 CHAPTER 8: Forecasts and plans Internal activities will focus mainly on further optimisation of business processes, centralisation of the lending process and reorganisation of the cash delivery and collection process for cooperative banks. Centralisation of the lending process will ultimately all credit approvals and facilities being handled by the Head Office. Once completed, the project will help to standardise and facilitate the decision-making process, enhance the quality of the credit portfolio and achieve cost efficiencies. Apart from activities aimed at improving internal processes and regulatory compliance, the Bank will also focus on associational solutions related to the development of electronic access channels, ATM services and def3000 deployment with auxiliary systems at the associated cooperative banks. Market development also creates pressure to expand the payment product portfolio by introducing instant payments and developing electronic access channels and payment cards. Technology support will be aimed at ensuring operational security and enhancing client experience through service level. Marketing will be an important element supporting business activities. It will be realised in line with the Group s strategy, to reinforce the SGB brand and cooperative banks brands. Unlike in previous years, the pressure will be on sales support at cooperative banks. Planned marketing campaigns, advertising in nationwide media and local effort will reinforce the Group s sales force. The above measures will help generate profits sufficient to maintain the real level of own funds, which will guarantee the planned business growth and maintenance of adequate liquidity. S 49 CHAPTER 8: Forecasts and plans

50 APPENDIX Appendix no 1 Organisational chart of SGB-Bank S.A. as of 31 December Appendix no 2 Branches of SGB-Bank S.A. as of 31 December Appendix no 3 Cooperative Banks associated with SGB-Bank S.A. as of 31 December

51 APPENDIX: Appendix no 1. Organisational chart of SGB-Bank S.A. as of 31 December 2013 S 51 APPENDIX

Annual REPORT SGB COOPERATIVE BANKS

Annual REPORT SGB COOPERATIVE BANKS 2014 Annual REPORT SGB COOPERATIVE BANKS LOCAL ACTION PASSION AND TALENT EFFICIENT INFORMATION FLOW EFFECTIVE OPERATIONS ENTREPRENEURSHIP AND INGENUITY FRUITFUL COOPERATION RESPONSIBLE DECISIONS EMPLOYEES

More information

Interim Abbreviated Consolidated Financial Statements of BNP Paribas Bank Polska SA Group for the Third Quarter 2011

Interim Abbreviated Consolidated Financial Statements of BNP Paribas Bank Polska SA Group for the Third Quarter 2011 Interim Abbreviated Consolidated Financial Statements of BNP Paribas Bank Polska SA Group for the Third Quarter 2011 BNP Paribas Bank Polska SA with its registered office at ul. Suwak 3, registered with

More information

INTERIM FINANCIAL STATEMENTS OF THE POWSZECHNA KASA OSZCZĘDNOŚCI BANK POLSKI SA GROUP FOR THE FIRST QUARTER OF 2009

INTERIM FINANCIAL STATEMENTS OF THE POWSZECHNA KASA OSZCZĘDNOŚCI BANK POLSKI SA GROUP FOR THE FIRST QUARTER OF 2009 PKO BANK POLSKI SPÓŁKA AKCYJNA INTERIM FINANCIAL STATEMENTS OF THE POWSZECHNA KASA OSZCZĘDNOŚCI BANK POLSKI SA GROUP FOR THE FIRST QUARTER OF 2009 Prepared in accordance with International Financial Reporting

More information

MEMORANDUM OF ASSOCIATION OF ALIOR BANK SPÓŁKA AKCYJNA (JOINT STOCK COMPANY)

MEMORANDUM OF ASSOCIATION OF ALIOR BANK SPÓŁKA AKCYJNA (JOINT STOCK COMPANY) MEMORANDUM OF ASSOCIATION OF ALIOR BANK SPÓŁKA AKCYJNA (JOINT STOCK COMPANY) I. GENERAL PROVISIONS 1. 1. The Bank s business name is: Alior Bank Spółka Akcyjna. 2. The Bank may use its abbreviated business

More information

Board of Executives Report on Fortis Bank Polska S.A. Activity in 2006

Board of Executives Report on Fortis Bank Polska S.A. Activity in 2006 Board of Executives Report on Fortis Bank Polska S.A. Activity in 2006 Fortis Bank Polska SA Head Office Postępu Street, 15 02-676 Warszawa Poland Telephone +48 (22) 566 90 00 Faks +48 (22) 566 90 10 info@fortisbank.com.pl

More information

Fewer net errors and omissions, that is a new format of the balance of payments

Fewer net errors and omissions, that is a new format of the balance of payments Fewer net errors and omissions, that is a new format of the balance of payments The size of net errors and omissions in the balance of payments decreased from 4.4% to 2.3% of GDP. This resulted from data

More information

1 The General Meeting introduces following amendments to the Bank s Articles of Association:

1 The General Meeting introduces following amendments to the Bank s Articles of Association: Resolution No. 1/2007 The shareholder Mr. Andrzej Leganowicz is hereby elected Chairman of the General Meeting and the shareholder Włodzimierz Jędrych is hereby elected Deputy Chairman of the General Meeting.

More information

Sberbank Group s IFRS Results for 6 Months 2013. August 2013

Sberbank Group s IFRS Results for 6 Months 2013. August 2013 Sberbank Group s IFRS Results for 6 Months 2013 August 2013 Summary of 6 Months 2013 performance: Income Statement Net profit reached RUB 174.5 bn (or RUB 7.95 per ordinary share), a 0.5% decrease on RUB

More information

CONSOLIDATED TEXT OF ARTICLES OF ASSOCIATION OF CYFROWY POLSAT SPÓŁKA AKCYJNA SEATED IN WARSAW

CONSOLIDATED TEXT OF ARTICLES OF ASSOCIATION OF CYFROWY POLSAT SPÓŁKA AKCYJNA SEATED IN WARSAW CONSOLIDATED TEXT OF ARTICLES OF ASSOCIATION OF CYFROWY POLSAT SPÓŁKA AKCYJNA SEATED IN WARSAW (consolidated text with amendments implemented on January 16, 2015, adopted by the Supervisory Board in resolution

More information

The Warsaw Stock Exchange Rules

The Warsaw Stock Exchange Rules (text consolidated at 20 June 2012)* * 1) The Rules adopted by the Supervisory Board by Resolution No. 1/1110/2006 dated 4 January 2006, as amended by the Exchange Supervisory Board: - by Resolution No.

More information

Draft of resolutions of the Ordinary General Meeting of 24 June 2014

Draft of resolutions of the Ordinary General Meeting of 24 June 2014 Attachment to the Report No 12/2014 Draft of resolutions Draft Resolution to Item 2 of the Agenda held on 24 June 2014 Resolution No 1/2014 concerning election of Chairman the Ordinary General Meeting

More information

Financial Overview INCOME STATEMENT ANALYSIS

Financial Overview INCOME STATEMENT ANALYSIS In the first half of 2006, China s economy experienced steady and swift growth as evidenced by a 10.9% surge in GDP. In order to prevent the economy from getting overheated and to curb excess credit extension,

More information

Introduction to mbank Group The most successful organic growth story in Poland

Introduction to mbank Group The most successful organic growth story in Poland Introduction to mbank Group The most successful organic growth story in Poland August 2015 mbank Group in a snapshot General description Key financial data (PLN M) Set up in 1986, mbank (originally BRE

More information

State budget borrowing requirements financing plan and its background

State budget borrowing requirements financing plan and its background Public Debt Department State budget borrowing requirements financing plan and its background September 2014 THE MOST IMPORTANT INFORMATION Monthly issuance calendar... 2 MoF comment... 8 Rating agencies

More information

Report of the PKO Bank Polski SA Group for the first quarter of 2013. Załącznik do uchwały nr /B/2012. Zarządu

Report of the PKO Bank Polski SA Group for the first quarter of 2013. Załącznik do uchwały nr /B/2012. Zarządu Zarządu Załącznik do uchwały nr /B/2012 Report of the PKO Bank Polski SA Group for the first quarter of 2013 Report publication date: 13 May 2013 PLN thousand EUR thousand SELECTED CONSOLIDATED FINANCIAL

More information

REPORT of the Supervisory Board of Mediatel S.A. for the period from 1 January 2009 to 31 December 2009

REPORT of the Supervisory Board of Mediatel S.A. for the period from 1 January 2009 to 31 December 2009 REPORT of the Supervisory Board of Mediatel S.A. for the period from 1 January 2009 to 31 December 2009 I. Assessment of the work of the Supervisory Board Composition of the Supervisory Board In 2009 the

More information

The PKO Bank Polski SA Group Directors Report for the first half of 2014 TABLE OF CONTENTS

The PKO Bank Polski SA Group Directors Report for the first half of 2014 TABLE OF CONTENTS The PKO Bank Polski SA Group Directors Report for the first half of 2014 TABLE OF CONTENTS Report publication date: 1 September 2014 1. SELECTED FINANCIAL DATA...3 2. EXTERNAL ENVIRONMENT AFFECTING THE

More information

GETIN NOBLE BANK S.A. REPORT SUPPLEMENTING THE INDEPENDENT AUDITOR S OPINION ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31 DECEMBER 2009

GETIN NOBLE BANK S.A. REPORT SUPPLEMENTING THE INDEPENDENT AUDITOR S OPINION ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31 DECEMBER 2009 GETIN NOBLE BANK S.A. REPORT SUPPLEMENTING THE INDEPENDENT AUDITOR S OPINION ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED ON 31 DECEMBER 2009 I. GENERAL 1. General information Getin Noble Bank S.A. (until

More information

INDUSTRIAL-ALLIANCE LIFE INSURANCE COMPANY. FIRST QUARTER 2000 Consolidated Financial Statements (Non audited)

INDUSTRIAL-ALLIANCE LIFE INSURANCE COMPANY. FIRST QUARTER 2000 Consolidated Financial Statements (Non audited) INDUSTRIAL-ALLIANCE LIFE INSURANCE COMPANY FIRST QUARTER 2000 Consolidated Financial Statements (Non audited) March 31,2000 TABLE OF CONTENTS CONSOLIDATED INCOME 2 CONSOLIDATED CONTINUITY OF EQUITY 3 CONSOLIDATED

More information

REPORT OF THE SUPERVISORY BOARD ON OPERATION IN 2013 AND ORIENTATION FOR 2014

REPORT OF THE SUPERVISORY BOARD ON OPERATION IN 2013 AND ORIENTATION FOR 2014 JSC BANK FOR FOREIGN TRADE OF VIET NAM Address: 198 Tran Quang Khai St, Ha No Business Registration No. 0100112437 (8 th revision dated 1 st August, 2013) SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom

More information

Rules of Alternative Trading System organised by the BondSpot S.A.

Rules of Alternative Trading System organised by the BondSpot S.A. Rules of Alternative Trading System organised by the BondSpot S.A. The Rules adopted by the Management Board by Resolution No. 103/2009 dated 4 November 2009, as amended by the Management Board: by Resolution

More information

Selected financial data

Selected financial data INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF THE CAPITAL GROUP OF BANK HANDLOWY W WARSZAWIE S.A. FOR THE FIRST QUARTER 2008 MAY 2008 Selected financial data In PLN 000 In EUR 000*** First quarter growing

More information

CHAPTER I. General provisions. Art. 1. The persons arriving are the founders of a joint-stock company, herein referred to as the Company. Art.

CHAPTER I. General provisions. Art. 1. The persons arriving are the founders of a joint-stock company, herein referred to as the Company. Art. CONSOLIDATED TEXT OF ARTICLES OF ASSOCIATION OF CYFROWY POLSAT SPÓŁKA AKCYJNA SEATED IN WARSAW (consolidated text with amendments implemented on June 5, 2012, adopted by the resolution no 07/05/06/2012

More information

State budget borrowing requirements financing plan and its background

State budget borrowing requirements financing plan and its background Public Debt Department State budget borrowing requirements financing plan and its background March 2014 THE MOST IMPORTANT INFORMATION Monthly issuance calendar... 2 20-year EUR denominated Registered

More information

Interim Abbreviated Consolidated Financial Statements of Fortis Bank Polska SA Capital Group for 3 Quarters of 2009

Interim Abbreviated Consolidated Financial Statements of Fortis Bank Polska SA Capital Group for 3 Quarters of 2009 Interim Abbreviated Consolidated Financial Statements of Fortis Bank Polska SA Capital Group for 3 Quarters of 2009 Table of Contents 1. Financial Highlights 3 2. Consolidated Financial Statements of Fortis

More information

Bank BPH Group Financial Report. 3 quarters

Bank BPH Group Financial Report. 3 quarters Bank BPH Group Financial Report 3 quarters SELECTED FINANCIAL DATA 3 quarters in accruals (current year) from 01.01. to 30.09. PLN'000 3 quarters in accruals (previous year) from 01.01. to 30.09. 3 quarters

More information

Consolidated Settlement of Accounts for the First 3 Quarters Ended December 31, 2011 [Japanese Standards]

Consolidated Settlement of Accounts for the First 3 Quarters Ended December 31, 2011 [Japanese Standards] The figures for these Financial Statements are prepared in accordance with the accounting principles based on Japanese law. Accordingly, they do not necessarily match the figures in the Annual Report issued

More information

SELECTED FINANCIAL DATA

SELECTED FINANCIAL DATA TTRATNSLATION 1 IINTERIIM CONDENSED CONSOLIIDATED FIINANCIIAL STATEMENTS OF THE CAPIITAL GROUP OF BANK HANDLOWY W WARSZAWIIE S..A.. FOR THE FIIRST QUARTER 2012 MAY 2012 SELECTED FINANCIAL DATA First quarter

More information

Chart 9.1 Non-performing loans ratio and structure of non-performing loans (right) 25% 80 06/08 03/11 03/09 12/07 12/08 06/09 09/09 12/09 09/08 06/11

Chart 9.1 Non-performing loans ratio and structure of non-performing loans (right) 25% 80 06/08 03/11 03/09 12/07 12/08 06/09 09/09 12/09 09/08 06/11 Financial Stability Report 21 H1 9. MONITORING BANKING SECTOR RISKS 9.1 CREDIT RISK (88) Loan portfolio quality improved and banks were more active in writingoff the loss loans from their balance sheets.

More information

INTERIM FINANCIAL STATEMENTS OF THE PKO BANK POLSKI SA GROUP FOR THE FIRST QUARTER OF 2008

INTERIM FINANCIAL STATEMENTS OF THE PKO BANK POLSKI SA GROUP FOR THE FIRST QUARTER OF 2008 PKO BANK POLSKI SPÓŁKA AKCYJNA INTERIM FINANCIAL STATEMENTS OF THE PKO BANK POLSKI SA GROUP FOR THE FIRST QUARTER OF 2008 Prepared in accordance with International Financial Reporting Standards CONTENTS

More information

We also assign a D- bank financial strength rating (BFSR) to the bank. The rationale for this rating mirrors that for the BCA.

We also assign a D- bank financial strength rating (BFSR) to the bank. The rationale for this rating mirrors that for the BCA. Moody s Investors Service Ltd CREDIT OPINION MORTGAGE AND LAND BANK OF LATVIA Summary Rating Rationale In accordance with Moody s rating methodology for government-related issuers (GRIs), we assign A2/Prime-1

More information

Fortis Bank Polska S.A.

Fortis Bank Polska S.A. OPINION OF THE INDEPENDENT AUDITOR AND REPORT SUPPLEMENTING THE OPINION ON THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2004 OPINION OF THE INDEPENDENT AUDITOR To the General Meeting

More information

I. General Provisions

I. General Provisions Binding from 18 th July 2014 Statutes of Bank Zachodni WBK S.A. (the consolidated text) I. General Provisions 1. 1. The name of the Bank is Bank Zachodni WBK Spółka Akcyjna. 2. The Bank may use the short

More information

SBERBANK GROUP S IFRS RESULTS. March 2015

SBERBANK GROUP S IFRS RESULTS. March 2015 SBERBANK GROUP S IFRS RESULTS 2014 March 2015 SUMMARY OF PERFORMANCE FOR 2014 STATEMENT OF PROFIT OR LOSS Net profit reached RUB 290.3bn (or RUB 13.45 per ordinary share), compared to RUB 362.0bn (or RUB

More information

mr. M.G.F.M.V. Janssen Secretary to the Managing Board T: +31 20 557 52 30 I: www.kasbank.com

mr. M.G.F.M.V. Janssen Secretary to the Managing Board T: +31 20 557 52 30 I: www.kasbank.com Date: 27 August 2015 For information: mr. M.G.F.M.V. Janssen Secretary to the Managing Board T: +31 20 557 52 30 I: www.kasbank.com Growth of 20% in net result, excluding non-recurring items, to EUR 8.3

More information

Announcement of Financial Results 1999. for. Den Danske Bank Group

Announcement of Financial Results 1999. for. Den Danske Bank Group Announcement of Financial Results 1999 for Den Danske Bank Group 2 Den Danske Bank Group Highlights Core earnings and net profit for the year (DKr million) 1999 1998 1997 1996 1995 Net interest income,

More information

NEWS RELEASE BNCCORP, INC. REPORTS THIRD QUARTER NET INCOME OF $1.9 MILLION, OR $0.40 PER DILUTED SHARE SERIES A PREFERRED STOCK TO BE REDEEMED

NEWS RELEASE BNCCORP, INC. REPORTS THIRD QUARTER NET INCOME OF $1.9 MILLION, OR $0.40 PER DILUTED SHARE SERIES A PREFERRED STOCK TO BE REDEEMED NEWS RELEASE FOR FURTHER INFORMATION: WEBSITE: www.bnccorp.com TIMOTHY J. FRANZ, CEO TELEPHONE: (612) 305-2213 DANIEL COLLINS, CFO TELEPHONE: (612) 305-2210 BNCCORP, INC. REPORTS THIRD QUARTER NET INCOME

More information

Western Energy Services Corp. Condensed Consolidated Financial Statements September 30, 2015 and 2014 (Unaudited)

Western Energy Services Corp. Condensed Consolidated Financial Statements September 30, 2015 and 2014 (Unaudited) Condensed Consolidated Financial Statements September 30, 2015 and 2014 (Unaudited) Condensed Consolidated Balance Sheets (Unaudited) (thousands of Canadian dollars) Note September 30, 2015 December 31,

More information

A CONSOLIDATED VERSION OF THE PUBLIC DEBT MANAGEMENT ACT

A CONSOLIDATED VERSION OF THE PUBLIC DEBT MANAGEMENT ACT M. OOZEER A CONSOLIDATED VERSION OF THE PUBLIC DEBT MANAGEMENT ACT 14 May 2015 2 A CONSOLIDATED VERSION OF THE PUBLIC DEBT MANAGEMENT ACT Act No. 5 of 2008 [Amended 14/2009, 10/2010, 36/2011, 38/2011,

More information

GDP growth slowdown, labour market revival

GDP growth slowdown, labour market revival Three quarters of 2007: Growth momentum sustained in all business lines BZWBK Group performance for 3Q 2007 November 2007 GDP growth slowdown, labour market revival Quarterly economic indicators, %YoY

More information

RAIFFEISEN BANK POLSKA SPÓŁKA AKCYJNA. Rules and regulations for opening and maintaining bank accounts for domestic and foreign banks

RAIFFEISEN BANK POLSKA SPÓŁKA AKCYJNA. Rules and regulations for opening and maintaining bank accounts for domestic and foreign banks RAIFFEISEN BANK POLSKA SPÓŁKA AKCYJNA Rules and regulations for opening and maintaining bank accounts for domestic and foreign banks Warsaw, 2012 1 Table of contents: Chapter 1 General provisions 3 Chapter

More information

Liquidity and Funding Resources

Liquidity and Funding Resources 112 Allianz Group Annual Report Liquidity and Funding Resources Organization The liquidity management of the Allianz Group is based on policies and guidelines approved by the Board of Management of Allianz

More information

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OF GETIN NOBLE BANK S.A. FOR THE 2012 FINANCIAL YEAR

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OF GETIN NOBLE BANK S.A. FOR THE 2012 FINANCIAL YEAR REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS OF GETIN NOBLE BANK S.A. FOR THE 2012 FINANCIAL YEAR I. GENERAL INFORMATION 1. Details of the audited Bank The Company operates under the business name Getin

More information

The Warsaw Stock Exchange Rules

The Warsaw Stock Exchange Rules The Warsaw Stock Exchange Rules (text according to legal condition at 1 June 2015)* *The Warsaw Stock Exchange Rules adopted in Resolution No. 1/1110/2006 of the Exchange Supervisory Board dated 4 January

More information

POSTBANK GROUP INTERIM MANAGEMENT STATEMENT AS OF MARCH 31, 2015

POSTBANK GROUP INTERIM MANAGEMENT STATEMENT AS OF MARCH 31, 2015 POSTBANK GROUP INTERIM MANAGEMENT STATEMENT AS OF MARCH 31, 2015 PRELIMINARY REMARKS MACROECONOMIC DEVELOPMENT BUSINESS PERFORMANCE PRELIMINARY REMARKS This document is an interim management statement

More information

Report of the PKO Bank Polski SA Group for the third quarter of 2014. /B/2013 Zarządu

Report of the PKO Bank Polski SA Group for the third quarter of 2014. /B/2013 Zarządu nr /B/2013 Zarządu Report of the PKO Bank Polski SA Group for the third quarter of 2014 Report publication date: 06 November 2014 SELECTED CONSOLIDATED FINANCIAL DATA PLN thousand from 01.01.2014 from

More information

OPINION OF THE INDEPENDENT AUDITOR

OPINION OF THE INDEPENDENT AUDITOR OPINION OF THE INDEPENDENT AUDITOR To the Shareholders of We have audited the accompanying financial statements of seated in Warsaw, ul. Senatorska 16, consisting of the introduction to the financial statements,

More information

STATUTES OF A JOINT-STOCK COMPANY

STATUTES OF A JOINT-STOCK COMPANY STATUTES OF A JOINT-STOCK COMPANY ASSECO South Eastern Europe Spółka Akcyjna 1 Company s business name 1. The Company s business name shall be ASSECO South Eastern Europe Spółka Akcyjna. 2. The Company

More information

Subject: Preliminary consolidated financial statements of the Capital Group of Bank Handlowy w Warszawie S.A. for the 2014

Subject: Preliminary consolidated financial statements of the Capital Group of Bank Handlowy w Warszawie S.A. for the 2014 Warsaw, February 12, 2015 Subject: Preliminary consolidated financial statements of the Capital Group of Bank Handlowy w Warszawie S.A. for the 2014 Legal basis: Art. 5 section 1 item 25) of the Ordinance

More information

Statute of BNP Paribas Bank Polska SA

Statute of BNP Paribas Bank Polska SA Statute of BNP Paribas Bank Polska SA The consolidated text was determined by the Supervisory Board of BNP Paribas Bank Polska SA, acting under an authorisation arising out of Article 15 para. 3 item 12

More information

Bank Gospodarstwa Krajowego (Issuer)

Bank Gospodarstwa Krajowego (Issuer) LETTER OF ISSUE No. 1/2014 of Bank Gospodarstwa Krajowego of 20 May 2014 regarding the issue of bonds of Bank Gospodarstwa Krajowego on behalf of the National Road Fund with maturity date of 25 October

More information

The assessment of Getin Noble Bank S.A. situation including the assessment of the internal control system

The assessment of Getin Noble Bank S.A. situation including the assessment of the internal control system The assessment of Getin Noble Bank S.A. situation including the assessment of the internal control system and the risk management system essential for the Company made by the Supervisory Board of Getin

More information

Report on the approval of the Appraisal Report of the Supervisory Board on the Financial Statements of BGŻ BNP Paribas S.A.

Report on the approval of the Appraisal Report of the Supervisory Board on the Financial Statements of BGŻ BNP Paribas S.A. Report on the approval of the Appraisal Report of the Supervisory Board on the Financial Statements of BGŻ BNP Paribas S.A. including the Brokerage House, Management Board Report on the Bank s activity,

More information

GETIN NOBLE BANK S.A. LONG-FORM AUDITORS REPORT ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010

GETIN NOBLE BANK S.A. LONG-FORM AUDITORS REPORT ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 LONG-FORM AUDITORS REPORT ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2010 I. GENERAL NOTES 1. Background Getin Noble Bank S.A. (hereinafter the Bank ), until 4 January 2010 operating under

More information

PLN 000 EUR 000*** SELECTED FINANCIAL DATA

PLN 000 EUR 000*** SELECTED FINANCIAL DATA TTRATNSLATION 1 EUR 000*** SELECTED FINANCIAL DATA accruals from 01.01.14 to 30.09.14 accruals from 01.01.13 to 30.09.13 accruals Period from 01.01.14 to 30.09.14 accruals from 01.01.13 to 30.09.13 Data

More information

NOBLE BANK S.A. CAPITAL GROUP

NOBLE BANK S.A. CAPITAL GROUP NOBLE BANK S.A. CAPITAL GROUP REPORT SUPPLEMENTING THE INDEPENDENT AUDITOR S OPINION ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31ST 2008 I. GENERAL 1. General information NOBLE

More information

REPORT on activities of the Supervisory Board of Bank Handlowy w Warszawie S.A.

REPORT on activities of the Supervisory Board of Bank Handlowy w Warszawie S.A. REPORT on activities of the Supervisory Board of Bank Handlowy w Warszawie S.A. for the period from the date of the Ordinary General Meeting of Shareholders in 2011 to the date of the Ordinary General

More information

Resolution No. 391/2008 of the Polish Financial Supervision Authority. of 17 December 2008

Resolution No. 391/2008 of the Polish Financial Supervision Authority. of 17 December 2008 Resolution No. 391/2008 of the Polish Financial Supervision Authority of 17 December 2008 on issue of Recommendation S (II) concerning good practices related to mortgage-secured credit exposures Pursuant

More information

CONSOLIDATED RESULTS AS AT 30 JUNE 2012

CONSOLIDATED RESULTS AS AT 30 JUNE 2012 CONSOLIDATED RESULTS AS AT 30 JUNE 2012 THE IMPLEMENTATION OF THE PROJECT TO SIMPLIFY THE GROUP CORPORATE STRUCTURE CONTINUES, WITH POSITIVE EFFECTS ON CAPITAL AND SYNERGIES FURTHER IMPROVEMENT IN THE

More information

! "# $%$& '( )*+,- $$.# / 01 2,+#-3$%+*%

! # $%$& '( )*+,- $$.# / 01 2,+#-3$%+*% ! "# $%$& '( )*+,- $$. )*+,- $$.# / 01 ((( 01 2,+#-3$%+*% TABLE OF CONTENTS I. Summary of the Bank s activity in THE FIRST HALF-YEAR 2005...3 A. Introduction... 3 B. Key factors that affected the Bank

More information

The Financial Markets Division of a Bank

The Financial Markets Division of a Bank Chapter 1 The Financial Markets Division of a Bank A bank s financial markets division carries out financial markets transactions on behalf of the bank. These transactions have to do with the various tasks

More information

PERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT

PERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT PENSIONS INVESTMENTS LIFE INSURANCE PERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT FOR PERSONAL RETIREMENT SAVINGS ACCOUNT () PRODUCTS WITH AN ANNUAL FUND MANAGEMENT CHARGE OF 1% - JULY 201 Thank

More information

LAW ON FOREIGN EXCHANGE OPERATIONS

LAW ON FOREIGN EXCHANGE OPERATIONS LAW ON FOREIGN EXCHANGE OPERATIONS This Law shall govern: (Consolidated) 1 I. BASIC PROVISIONS Article 1 1) payments, collections and transfers between residents and non-residents in foreign means of payment

More information

General guidelines for the completion of the bank lending survey questionnaire

General guidelines for the completion of the bank lending survey questionnaire General guidelines for the completion of the bank lending survey questionnaire This document includes the general guidelines for the completion of the questionnaire and the terminology used in the survey.

More information

BORROWING AND DEBT MANAGEMENT GUIDELINES OF THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA FOR 2015 2017 CHAPTER I GENERAL PROVISIONS

BORROWING AND DEBT MANAGEMENT GUIDELINES OF THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA FOR 2015 2017 CHAPTER I GENERAL PROVISIONS APPROVED BY Government of the Republic of Lithuania Resolution No 1437 of 15 December 2014 BORROWING AND DEBT MANAGEMENT GUIDELINES OF THE GOVERNMENT OF THE REPUBLIC OF LITHUANIA FOR 2015 2017 CHAPTER

More information

INVESTMENT DICTIONARY

INVESTMENT DICTIONARY INVESTMENT DICTIONARY Annual Report An annual report is a document that offers information about the company s activities and operations and contains financial details, cash flow statement, profit and

More information

MERGER PLAN Sygnity S.A. with its registered office in Warsaw and "PROJEKTY BANKOWE POLSOFT" Sp. z o.o. with its registered office in Poznań

MERGER PLAN Sygnity S.A. with its registered office in Warsaw and PROJEKTY BANKOWE POLSOFT Sp. z o.o. with its registered office in Poznań MERGER PLAN Sygnity S.A. with its registered office in Warsaw and "PROJEKTY BANKOWE POLSOFT" Sp. z o.o. with its registered office in Poznań This merger plan (hereinafter referred to as "Merger Plan")

More information

Why Treasury Yields Are Projected to Remain Low in 2015 March 2015

Why Treasury Yields Are Projected to Remain Low in 2015 March 2015 Why Treasury Yields Are Projected to Remain Low in 5 March 5 PERSPECTIVES Key Insights Monica Defend Head of Global Asset Allocation Research Gabriele Oriolo Analyst Global Asset Allocation Research While

More information

Non-Government-Guaranteed Bonds in the Petroleum Fund - NBIM

Non-Government-Guaranteed Bonds in the Petroleum Fund - NBIM Page 1 of 7 Non-Government-Guaranteed Bonds in the Petroleum Fund From 2002, the Government Petroleum Fund will be investing a large portion of the portfolio in non-government bonds. The benchmark index

More information

Appendix. Debt Position and Debt Management

Appendix. Debt Position and Debt Management Appendix Debt Position and Debt Management BUDGET '97 BUILDING ALBERTA TOGETHER Table of Contents Debt Position and Debt Management... 349 The Consolidated Balance Sheet and Net Debt... 350 Liabilities...

More information

Statistics Netherlands. Macroeconomic Imbalances Factsheet

Statistics Netherlands. Macroeconomic Imbalances Factsheet Macroeconomic Imbalances Factsheet Introduction Since the outbreak of the credit crunch crisis in 2008, and the subsequent European debt crisis, it has become clear that there are large macroeconomic imbalances

More information

Rules of Alternative Trading System organised by the BondSpot S.A.

Rules of Alternative Trading System organised by the BondSpot S.A. Rules of Alternative Trading System organised by the BondSpot S.A. text according to legal condition at 1 January 2013 Only the Polish version of these documents is legally binding. This translation is

More information

Press Release. Major Elements of the Consolidated Accounts. Balance Sheet

Press Release. Major Elements of the Consolidated Accounts. Balance Sheet Presse und Kommunikation MAIN TOWER Neue Mainzer Straße 52-58 60311 Frankfurt am Main www.helaba.de Tel.: +49 (0) 69 / 9132 2192 Wolfgang Kuß E-Mail: wolfgang.kuss@helaba.de Ursula-Brita Krück E-Mail:

More information

The Polish language original should be referred to in matters of interpretation.

The Polish language original should be referred to in matters of interpretation. Report of the Supervisory Board of Powszechna Kasa Oszczędności Bank Polski Spółka Akcyjna containing the results of the evaluation of: the financial statements of PKO BP SA for 2009, the report of the

More information

Year-end report 2014-12

Year-end report 2014-12 Year-end report -12 Results for the full year Business volume increased by 7 percent to bnsek 41.8 (38.9). Lending, including leasing, increased by 11 percent to bnsek 22.0 (19.8). Deposits increased by

More information

Abbreviated Interim Separate Financial Statements of BNP Paribas Bank Polska SA for the first half of 2012

Abbreviated Interim Separate Financial Statements of BNP Paribas Bank Polska SA for the first half of 2012 Abbreviated Interim Separate Financial Statements of BNP Paribas Bank Polska SA for the first half of 2012 BNP Paribas Bank Polska SA with its registered office at ul. Suwak 3, registered with the District

More information

T he restrictions of Sections 23A and Regulation W

T he restrictions of Sections 23A and Regulation W BNA s Banking Report Reproduced with permission from BNA s Banking Report, 100 BBR 109, 1/15/13, 01/15/2013. Copyright 2013 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com REGULATION

More information

Arkansas Development Finance Authority, a Component Unit of the State of Arkansas

Arkansas Development Finance Authority, a Component Unit of the State of Arkansas Arkansas Development Finance Authority, a Component Unit of the State of Arkansas Combined Financial Statements and Additional Information for the Year Ended June 30, 2000, and Independent Auditors Report

More information

CorpBanca Announces First Quarter 2011 Financial Results and Conference Call on Tuesday, May 17, 2011

CorpBanca Announces First Quarter 2011 Financial Results and Conference Call on Tuesday, May 17, 2011 CorpBanca Announces First Quarter 2011 Financial Results and Conference Call on Tuesday, May 17, 2011 Santiago, Chile, CORPBANCA (NYSE: BCA), a Chilean financial institution offering a wide variety of

More information

X. INTERNATIONAL ECONOMIC DEVELOPMENT 1/

X. INTERNATIONAL ECONOMIC DEVELOPMENT 1/ 1/ X. INTERNATIONAL ECONOMIC DEVELOPMENT 1/ 10.1 Overview of World Economy Latest indicators are increasingly suggesting that the significant contraction in economic activity has come to an end, notably

More information

ELEKTROBUDOWA SPÓŁKA AKCYJNA KATOWICE, UL. PORCELANOWA 12 FINANCIAL STATEMENTS FOR THE 2013 FINANCIAL YEAR WITH AUDITOR S OPINION AND AUDIT REPORT

ELEKTROBUDOWA SPÓŁKA AKCYJNA KATOWICE, UL. PORCELANOWA 12 FINANCIAL STATEMENTS FOR THE 2013 FINANCIAL YEAR WITH AUDITOR S OPINION AND AUDIT REPORT ELEKTROBUDOWA SPÓŁKA AKCYJNA KATOWICE, UL. PORCELANOWA 12 FINANCIAL STATEMENTS FOR THE 2013 FINANCIAL YEAR WITH AUDITOR S OPINION AND AUDIT REPORT TABLE OF CONTENTS AUDITOR S OPINION... 3 REPORT SUPPLEMENTING

More information

! "#$#% &' )*+,-##.! / 01 2,+!-3#$+*$

! #$#% &' )*+,-##.! / 01 2,+!-3#$+*$ ! "#$#% &' ()*+,-##. )*+,-##.! / 01 ''' 01 2,+!-3#$+*$ TABLE OF CONTENTS I. Summary of the Bank s activity in 2005...3 A. Introduction... 3 B. Key factors that affected the Bank s financial performance

More information

Report of the Supervisory Board of Echo Investment S.A. on the results of:

Report of the Supervisory Board of Echo Investment S.A. on the results of: Report of the Supervisory Board of Echo Investment S.A. on the results of: -assessment of the separate financial statements of Echo Investment S.A. and the consolidated financial statements of Echo Investment

More information

Fortuna Entertainment Group NV

Fortuna Entertainment Group NV Fortuna Entertainment Group NV Investor Presentation October 2012 WILFRED WALSH Fortuna Entertainment Group NV Chairman of the Management Board Wilf Walsh acts as Chairman of the Management Board. In 2009,

More information

ENEA S.A. POZNAŃ, UL. NOWOWIEJSKIEGO 11 FINANCIAL STATEMENTS FOR THE 2010 FINANCIAL YEAR WITH AUDITOR S OPINION AND AUDIT REPORT

ENEA S.A. POZNAŃ, UL. NOWOWIEJSKIEGO 11 FINANCIAL STATEMENTS FOR THE 2010 FINANCIAL YEAR WITH AUDITOR S OPINION AND AUDIT REPORT POZNAŃ, UL. NOWOWIEJSKIEGO 11 FINANCIAL STATEMENTS FOR THE 2010 FINANCIAL YEAR WITH AUDITOR S OPINION AND AUDIT REPORT TABLE OF CONTENTS AUDITOR S OPINION... 3 REPORT SUPPLEMENTING THE OPINION ON THE AUDIT

More information

Daily Income Fund Retail Class Shares ( Retail Shares )

Daily Income Fund Retail Class Shares ( Retail Shares ) Daily Income Fund Retail Class Shares ( Retail Shares ) Money Market Portfolio Ticker Symbol: DRTXX U.S. Treasury Portfolio No Ticker Symbol U.S. Government Portfolio Ticker Symbol: DREXX Municipal Portfolio

More information

Words from the President and CEO 3 Financial highlights 4 Highlights 5 Export lending 5 Local government lending 6 Funding 6 Results 6 Balance sheet

Words from the President and CEO 3 Financial highlights 4 Highlights 5 Export lending 5 Local government lending 6 Funding 6 Results 6 Balance sheet Words from the President and CEO 3 Financial highlights 4 Highlights 5 Export lending 5 Local government lending 6 Funding 6 Results 6 Balance sheet 7 Events after the balance sheet date 8 Income statement

More information

Check against delivery. Hans Dieter Pötsch Speech at the Annual Media Conference and Investor Conference on March 13, 2014.

Check against delivery. Hans Dieter Pötsch Speech at the Annual Media Conference and Investor Conference on March 13, 2014. Check against delivery Hans Dieter Pötsch Speech at the Annual Media Conference and Investor Conference on March 13, 2014 Part II Good morning, Ladies and Gentlemen, I, too, would like to wish you a very

More information

Half Year 2015 Results

Half Year 2015 Results Half Year 2015 Results Letter to shareholders LifeWatch First Half Highlights Revenue growth of 9.1% to USD 52.5 million Above-market growth of over 12% in core monitoring services resulting in market

More information

West Japan Railway Company

West Japan Railway Company (Translation) Matters to be disclosed on the Internet in accordance with laws and ordinances and the Articles of Incorporation NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTES TO NON-CONSOLIDATED FINANCIAL

More information

This document is a translation of a document originally issued in Polish. The only binding version is the original Polish version.

This document is a translation of a document originally issued in Polish. The only binding version is the original Polish version. PKO BANK POLSKI SPÓŁKA AKCYJNA PKO BANK POLSKI SA DIRECTORS REPORT FOR THE YEAR 2011 TABLE OF CONTENTS: 1. INTRODUCTION 1.1 PKO BANK POLSKI SA HISTORICAL BACKGROUND 1.2 PKO BANK POLSKI SA IN YEARS 2009-2011

More information

FACTORS AFFECTING THE LOAN SUPPLY OF BANKS

FACTORS AFFECTING THE LOAN SUPPLY OF BANKS FACTORS AFFECTING THE LOAN SUPPLY OF BANKS Funding resources The liabilities of banks operating in Estonia mainly consist of non-financial sector deposits, which totalled almost 11 billion euros as at

More information

Markets, Investments, and Financial Management FIFTEENTH EDITION

Markets, Investments, and Financial Management FIFTEENTH EDITION INTRODUCTION TO FINANCE Markets, Investments, and Financial Management FIFTEENTH EDITION Ronald W. Melicher Professor of Finance University of Colorado at Boulder Edgar A. Norton Professor of Finance Illinois

More information

RISK FACTORS AND RISK MANAGEMENT

RISK FACTORS AND RISK MANAGEMENT Bangkok Bank Public Company Limited 044 RISK FACTORS AND RISK MANAGEMENT Bangkok Bank recognizes that effective risk management is fundamental to good banking practice. Accordingly, the Bank has established

More information

The following is the text of an announcement made today by HSBC Bank Malta p.l.c., a 70.03 per cent indirectly held subsidiary of HSBC Holdings plc.

The following is the text of an announcement made today by HSBC Bank Malta p.l.c., a 70.03 per cent indirectly held subsidiary of HSBC Holdings plc. We only advise on our own life assurance, pensions and unit trusts The following is the text of an announcement made today by HSBC Bank Malta p.l.c., a 70.03 per cent indirectly held subsidiary of HSBC

More information

Translation of Statutory Auditor s Report supplementing the opinion on consolidated financial statements of Fortis Bank Polska SA for the year ended

Translation of Statutory Auditor s Report supplementing the opinion on consolidated financial statements of Fortis Bank Polska SA for the year ended Translation of Statutory Auditor s Report supplementing the opinion on consolidated financial statements of Fortis Bank Polska SA for the year ended 31 December 2009 Translation of Statutory Auditor s

More information

Financial-Institutions Management. Solutions 6

Financial-Institutions Management. Solutions 6 Solutions 6 Chapter 25: Loan Sales 2. A bank has made a three-year $10 million loan that pays annual interest of 8 percent. The principal is due at the end of the third year. a. The bank is willing to

More information

Finansinspektionen's Regulations

Finansinspektionen's Regulations Finansinspektionen's Regulations Publisher: Gent Jansson, Finansinspektionen, Box 6750, 113 85 Stockholm. Ordering address: Thomson Fakta AB, Box 6430, 113 82 Stockholm. Tel +46 8-587 671 00, Fax +46 8-587

More information

ARTICLES OF ASSOCIATION OF QUMAK JOINT-STOCK COMPANY I. GENERAL PROVISIONS

ARTICLES OF ASSOCIATION OF QUMAK JOINT-STOCK COMPANY I. GENERAL PROVISIONS Appendix No 1 to the Resolution No 13 of the General Meeting of 11 June 2015 (Consolidated text) ARTICLES OF ASSOCIATION OF QUMAK JOINT-STOCK COMPANY I. GENERAL PROVISIONS 1 1. The name of the Company

More information