ATE BANK ROMANIA S.A. Section
no.1
on
the Agenda of the
General
Assembly
on
the date of 23.04.2010
The
financial statements for the end of 2009 (the accounting balance sheet, the
profit and loss account, the statement for changes to the own equity, statement
of treasury flows, the other notes) used for the preparation of this report
were drawn up according to the national standards and have been audited by the
external auditor approved during the meeting of the General Ordinary Assembly
of the Shareholders of 27.04.2009, ERNST & YOUNG respectively.
For
a correct and complete assessment of the information detailed in this
report, having regard to the fact that the bank is member of ATE Bank Greece,
we consider useful to mention the foreign exchange rates established by the
Central Bank, as follows:
|
Currency |
31.12.2008 |
31.12.2009 |
% |
EUR
|
3,9852
RON |
4,2282
RON |
106,09 |
|
USD |
2,8342
RON |
2,9361
RON |
103,59 |
This shows that the process of the
domestic currency depreciation in relation to EUR and USD has continued in
2009.
During
2009, Romania was affected by the world economic and financial crisis.
Thus, the inflation rate reached 4,7%, the national budget deficit was 7,3% and
the unemployment rate was 7,8%. The effects of the crisis were also felt at the
level of the financial-banking system, having regard to the fact that the loans
granted in the non-governmental system decreased by 9% for the loans denominated
in RON and by 1% for the loans denominated in EUR. In addition, the total
overdue loans of the Romanian banks had the value of 2 billion EUR in 2009,
which is an increase of 2.8 times in comparison to 31.12.2008.
The
Members of the Board of Director during 2009 were the following:
Mr. Dimitrios Miliakos – Chairman
until 07.12.2009;
Mr. Panayotis Varangis – Member
until 27.04.2009;
Mr. Epameinondas Papanikolaou -
Member
Mr. Konstantinos Christou - Member
Mr. Anastasios Papanikolaou – Member
since 27.04.2009
Mr. Sergiu Manea - Member
Mrs. Alina Pascu – Member
Mr. Teodor Dragan – Member
The
Executive Management of the Bank during 2009 was ensured by the following
persons:
Mr. Sergiu Manea - General Manager
Mr. Epameinondas Papanikolaou –
Deputy General Manager
Mrs. Alina Pascu - Deputy General
Manager
The
main financial statement of the Bank on 31.12.2009 (Annex 1)
The total of the main financial statement of the bank (accounting
balance sheet) on 31.12.2009 was 1.453.441.753 RON in comparison to 993.508.047
RON on 31.12.2008. During 2009, the total value of the main financial statement
of the bank (accounting balance sheet) increased by 459.933.706 RON, and this
represents an increase by 46,29%.
The
registered equity of the bank, subscribed and paid-up, at the end of 2009,
was 136.470.588 RON, the same as at the end of 2008.
The
structure of the shareholding of the bank on 31.12.2009, in comparison to
31.12.2008, is represented as follows:
RON
Shareholders
|
31.12.2008 |
% |
31.12.2009 |
% |
|
ATE
BANK Greece |
101.165.346,80 |
74,13 |
101.165.346,80 |
74,13 |
|
I.F.C. |
20.470.588,20 |
15,00 |
20.470.588,20 |
15,00 |
|
UCECOM |
10.050.710,60 |
7,36 |
10.050.710,60 |
7,36 |
|
Legal
persons |
1.845.424,00 |
1,35 |
1.845.424,00 |
1,35 |
|
Natural
persons |
2.938.518,60 |
2,16 |
2.938.518,60 |
2,16 |
|
Total |
136.470.588,20 |
100,00 |
136.470.588,20 |
100,00 |
This shows there were no
modifications of the bank's shareholding structure during 2009. The Bank's
equity is divided into 682.352.941 shares with a nominal value of 0,2 RON.
The structure of the other funds of the bank is as follows:
RON
Other funds
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
Share
premium |
36.324.522 |
27,10 |
36.324.522 |
26,44 |
100,00 |
|
Legal
reserves |
8.753.142 |
6,53 |
8.955.711 |
6,53 |
102,60 |
|
Reserves
for risks |
2.660.682 |
1,98 |
2.660.682 |
1,93 |
100,00 |
|
Re-evaluation
reserves |
78.101.172 |
58,20 |
78.101.172 |
56,85 |
100,00 |
|
Other
reserves, of which: |
8.159.704 |
6,11 |
11.330.618 |
8,25 |
138,86 |
|
- Tax facilities |
3.648.882 |
2,49 |
6.409.515 |
4,66 |
175,65 |
|
-
Exchange rate differences related to foreign currency equity |
1.136.799 |
0,84 |
1.136.799 |
0,82 |
100,00 |
|
-
Retained earnings |
3.374.023 |
2,78 |
3.784.304 |
2,77 |
100,00 |
|
Total |
133.999.222 |
100,00 |
137.372.705 |
100,00 |
102,51 |
From the point of view of the capital adequacy to risks, the
situation is as follows:
|
Currency |
31.12.2008 |
31.12.2009 |
% |
Total funds
|
228.430.463 |
226.421.024 |
99,12 |
|
Tier I own funds |
185.984.545 |
190.176.809 |
102,25 |
|
Tier II own funds |
42.445.918 |
36.244.215 |
85,38 |
|
Capital requirements |
60.729.119 |
89.170.259 |
146,83 |
|
-
credit risk |
55.952.388 |
83.788.031 |
149,47 |
|
-
market risk |
- |
248.426 |
- |
|
-
operational risk |
4.776.731 |
5.133.802 |
107,47 |
|
Solvency |
30,51% |
20,31% |
66,35% |
Out of the data presented, it can be
seen that the increase of the capital requirements for covering the credit risk
and the operational risk led to the decrease of the solvency indicator.
The cash attracted from the wholesale market on 31.12.2009, in
comparison to 31.12.2008 is structured as follows:
RON
Indicator
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
Deposits
on sight |
3.941.351 |
0,77 |
65.031.953 |
10,39 |
1.649,99 |
|
- lei/lei |
2.248.179 |
0,44 |
16.083.132 |
2,57 |
715,38 |
|
- lei/foreign currency |
1.693.172 |
0,33 |
48.948.821 |
7,82 |
2.890.95 |
|
Term
deposits |
503.708.221 |
99,23 |
560.934.460 |
89,61 |
111,36 |
|
- lei/lei |
53.500.000 |
10,53 |
10.000.000 |
1,60 |
18,69 |
|
- lei/foreign currency |
450.208.221 |
88,70 |
550.934.460 |
88,02 |
122,37 |
|
Total,
of which: |
507.649.572 |
100,00 |
625.966.413 |
100,00 |
123,30 |
|
- lei/lei |
55.748.179 |
10,98 |
26.083.132 |
4,17 |
46,78 |
|
- lei/foreign currency |
451.901.393 |
89,02 |
599.883.281 |
95,83 |
132,74 |
On 31.12.2009, the value of the cash
attracted from the wholesale market was larger by 118.316.841 RON in comparison
to 31.12.2008, which represents an increase by 23.30%.
The total value of the term deposits
denominated in foreign currency at the end of 2009 includes the amount of
307.874.256 RON, representing the amount of 77 million EUR received from ATE
Bank Greece. For that amount, during 2009, the Bank paid an interest of 14.833.761
RON to ATE Bank Greece, which is the equivalent of 3.515.722 EUR, as well as
taxes of 1.648.196 RON to the state budget of Romania, which is the equivalent
of 390.634 EUR.
The
cash attracted from customers listed in the Bank's balance sheet is as
follows:
RON
Indicator
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
Deposits,
of which: |
175.824.428 |
89,31 |
483.641.708 |
91,35 |
275,07 |
|
- on sight |
67.141.899 |
34,11 |
74.021.503 |
13,98 |
110,24 |
|
· lei/lei |
39.590.641 |
20,11 |
37.858.392 |
7,15 |
95,62 |
|
· lei/foreign currency |
27.551.258 |
14,00 |
36.163.111 |
6,83 |
131,25 |
|
- term deposits |
108.682.529 |
55,20 |
409.620.205 |
77,37 |
376,89 |
|
· lei/lei |
56.070.658 |
28,48 |
167.060.290 |
31,55 |
297,94 |
|
· lei/foreign currency |
52.611.871 |
26,72 |
242.559.915 |
45,82 |
461,03 |
|
Deposit
certificates |
21.036.129 |
10,69 |
4.308.162 |
0,81 |
20,47 |
|
· lei/lei |
9.748.050 |
4,95 |
2.366.150 |
0,44 |
24,27 |
|
· lei/foreign currency |
11.288,079 |
5,74 |
1.942.012 |
0,37 |
17,20 |
|
Lease back denominated in foreign currency |
- |
- |
41.448.040 |
7,84 |
- |
|
Total,
of which: |
196.860.557 |
100,00 |
529.397.910 |
100,00 |
268,92 |
|
· lei/lei |
105.409.349 |
53,55 |
207.284.832 |
39,15 |
196,64 |
|
· lei/foreign currency |
91.451.208 |
46,45 |
322.113.078 |
60,85 |
352,22 |
During 2009, the Bank concluded a
lease back agreement for the building of the headquarters in Bucharest, Calea
Griviţei no. 24, with Alfa Leasing. Based on that agreement, the Bank
collected the amount of 10 million EUR, owing to repay the real estate property
over a period of 10 years.
It can be noticed from the above
data that, on 31.12.2009, the cash attracted from the customers was 332.537.353
RON larger than the amount on 31.12.2008.
The increase of 168.92% of the cash attracted from customers during 2009
represents the special focus of the Bank on financing its activity from local
resources.
For the Bank's corporate customers,
the saving offer contains, for RON and EUR, deposits on sight, term deposits
for 1, 3, 6, 9 and 12 months, deposit certificates for 6, 9, 12, 18 and 24
months.
For the Bank's retail customers, the
saving offer contains, for RON and EUR, deposits on sight, current accounts
with saving facilities (Demetra); term deposits for 1, 3, 6, 9 and 12 months;
term deposits for 4, 8, 12 and 16 months, with bonuses granted for family
events (Sparta); term deposits for 3, 6 and 12 months, with anticipated payment
of interest (Acropole) and deposit certificates for 6, 9, 12, 18 and 24 months.
The retail and corporate customers
can also create USD deposits on sight and term deposits for 1, 3, 6, 9 and 12
months, as well as GBP deposits on sight and term deposits for 1 month.
Depending on the deposited amount
and on the deposit maturity, the Bank promoted, for the retail and corporate
customers, a series of non-standard deposits, different from the standard one
by the attractive yearly interest rates and commissions discounts.
In order to assess correctly the
evolution of the cash attracted from customers, we consider opportune to detail
them by depositors, as follows:
RON
Indicator
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
Deposits
of legal persons |
90.657.914 |
46,05 |
155.683.291 |
31,91 |
171,72 |
|
- on sight |
40.077.733 |
20,36 |
41.051.956 |
8,41 |
102,43 |
|
- term deposits |
39.067.335 |
19,84 |
113.692.235 |
23,30 |
291,01 |
|
- certificates |
11.512.846 |
5,85 |
939.100 |
0,19 |
8,15 |
|
Deposits
of natural persons |
106.202.643 |
53,95 |
332.266.579 |
68,09 |
312,86 |
|
- on sight |
27.064.166 |
13.75 |
32.969.547 |
6,76 |
121,81 |
|
- term deposits |
69.615.194 |
35,36 |
295.927.970 |
60,65 |
425,09 |
|
- certificates |
9.523.283 |
4,84 |
3.369.062 |
0,69 |
35,37 |
|
Total
deposits, of which: |
196.860.557 |
100,00 |
487.949.870 |
100,00 |
247,86 |
|
- on sight |
67.141.899 |
34,10 |
74.021.503 |
15,17 |
110,24 |
|
- term deposits |
108.682.529 |
52,20 |
409.620.205 |
83,95 |
376,89 |
|
- certificates |
21.036.129 |
13,70 |
4.308.162 |
0,88 |
20,47 |
The above data show an increase of
the deposits both for the retail customers and for the corporate customers, but
the deposits of the natural persons at the end of 2009 represent 68% of the
total deposits attracted by the bank.
We mention that the bank is involved
in the guaranteeing scheme of the Deposit Guarantee Fund in the Banking System
in Romania. Under those circumstances, the Bank's customers have been informed
that the guarantee ceiling is established for the amount of 50.000 EUR. The
bank's contribution to the deposits guarantee fund is a share of 0,2% of the
total deposits included in the guaranteeing scheme, on a yearly basis.
The
value of the Bank's cash in the cashier's office, at the Central Bank and
at correspondent banks, on 31.12.2009 was 282.047.821 RON, increasing with
40.091.476 RON in comparison to 31.12.2008. This increase represents 16,56%, as
follows:
RON
Indicator
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
Cash in the cashier's office |
10.038.672 |
4,14 |
18.561.674 |
6,58 |
184,90 |
|
-
lei/lei |
8.646.842 |
3,57 |
12.095.401 |
4,29 |
139,88 |
|
-
lei/foreign currency |
1.391.830 |
0,57 |
6.466.273 |
2,29 |
464,58 |
|
Cash at the Central Bank |
189.189.760 |
78,19 |
115.093.183 |
40,81 |
60,83 |
|
-
lei/lei |
20.561.335 |
8,49 |
32.871.162 |
11,65 |
159,86 |
|
-
lei/foreign currency |
168.628.425 |
69,70 |
82.222.021 |
29,15 |
48,75 |
|
Cash at correspondent banks |
42.727.913 |
17.67 |
148.392.964 |
52,61 |
347,29 |
|
-
lei/lei |
24.000.725 |
9,91 |
95.000.000 |
33,68 |
395,82 |
|
-
lei/foreign currency |
18.727.188 |
7,76 |
53.392.964 |
18,93 |
285,10 |
|
Total, of which: |
241.956.345 |
100,00 |
282.047.821 |
100,00 |
116,56 |
|
-
lei/lei |
53.208.902 |
21,99 |
139.966.563 |
49,63 |
263,05 |
|
-
lei/foreign currency |
188.747.443 |
78,01 |
142.081.258 |
50,37 |
75,27 |
Even if, during 2009, the Bank had a
significant increase of the volume of granted loans, however, on 31.12.2009 it
had an increase by 16.56% of its total cash.
We mention that the cash at the
Central Bank includes the amounts related to the minimum reserve requirement, as follows:
RON
Indicator
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
MRR lei/lei |
20.561.335 |
10,86 |
29.332.233 |
26.12 |
142,65 |
|
MRR lei/foreign currency |
168.628.425 |
89,14 |
82.956.190 |
73,88 |
49,19 |
|
Total MRR |
189.189.760 |
100,00 |
112.288.423 |
100,00 |
59,35 |
The reduction in the amount of the
minimum reserve requirement at the Central Bank is explicable by the NBR
decision to decrease the setting up percentage from 18% to 15% for the deposits
denominated in lei and from 40% to 25% for the deposits denominated in EUR.
The use of the Bank's cash for
expanding its business is limited by the requirement to ensure a level of the
immediate liquidity of 30% and a level of minimum 1% for each maturity interval
of the general liquidity. The immediate liquidity represents the ratio between
the bank's cash and the cash attracted by the bank, irrespective of the
maturity interval. The general liquidity represents the ratio between the
bank's cash and the cash attracted by the bank, for each maturity interval.
Having regard to the above information, the liquidity indicators are as
follows:
|
Indicator |
31.12.2008 |
31.12.2009 |
Immediate liquidity
|
36,39% |
31,84% |
|
General liquidity |
1,50% |
1,15% |
The state securities bought by the Bank, registered in balance on 31.12.2009, had the value
of 92.425.492 RON, increasing with 72.420.840 RON in comparison to 31.12.2008.
They were purchase in order to cover the liquidity risk, having regard to the
fact that the state securities represent a guarantee accepted by the Central
Bank for granting the loans requested by the commercial banks in case of
treasury difficulties.
The
loans in the main financial statement on 31.12.2009 had the value of
895.913.157 RON, increasing with 296.198.906 RON in comparison to the end of 2008. This
indicates an increase of 49,39%. We mention that the amount of the loans
mentioned in the accounting balance sheet represent the net value resulted
after deducting the specific provisions from the gross value, as follows:
RON
Indicator
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
Short term loans |
207.735.318 |
34,45 |
314.285.883 |
34,96 |
151,29 |
|
-
lei/lei |
131.700.406 |
21,84 |
119.213.188 |
13,26 |
90,51 |
|
-
lei/foreign currency |
76.034.912 |
12,61 |
195.072.695 |
21,70 |
256,55 |
|
Medium term loans |
143.772.457 |
23,84 |
246.028.232 |
27,36 |
171,12 |
|
-
lei/lei |
49.199.495 |
8,15 |
25.865.851 |
2,88 |
52,57 |
|
-
lei/foreign currency |
94.572.962 |
15,69 |
220.162.381 |
24,48 |
232,79 |
|
Long term loans |
251.432.495 |
41,71 |
338.756.546 |
37,68 |
134,73 |
|
-
lei/lei |
99.733.623 |
16,54 |
53.085.813 |
5,90 |
53,22 |
|
-
lei/foreign currency |
151.698.872 |
25,17 |
285.670.733 |
31,78 |
188,31 |
|
Total loans (gross) |
602.940.270 |
100,00 |
899.070.661 |
100,00 |
149,11 |
|
-
lei/lei |
280.633.524 |
46,54 |
198.164.852 |
22,04 |
70,61 |
|
-
lei/foreign currency |
322.306.746 |
53,46 |
700.905.809 |
77,96 |
217,46 |
|
Provisions |
3.226.019 |
100,00 |
3.661.790 |
100,00 |
97,87 |
|
-
lei/lei |
2.673.321 |
82,86 |
2.197.879 |
69,61 |
82,21 |
|
-
lei/foreign currency |
552.698 |
17,14 |
1.463.911 |
30,39 |
173,62 |
|
Total loans (net) |
599.714.251 |
100,00 |
895.408.871 |
100,00 |
149,30 |
|
-
lei/lei |
277.960.203 |
46,34 |
195.966.973 |
21,87 |
70,50 |
|
-
lei/foreign currency |
321.754.048 |
53,66 |
699.441.898 |
78,13 |
217,54 |
It should be noticed that, during
2009, the weight of the granted loans denominated in RON decreased and the
weight of the granted loans denominated in EUR doubled in value.
The value of the loans exported by ATE Bank Romania to ATE Bank Greece
continued to increase during 2009, as well. ATE Bank Romania received the value
of the exported loans, denominated in EUR, and ATE Bank Greece received the
value of the related interest, denominated in EUR. At the same time, according
to the agreement, ATE Bank Romania is entitled to a commission of 0,5% of the
income from interest, for the management of the exported loans portfolio. The
taxes related to the income from interest, owed to the state budget of Romania,
were paid by ATE Bank Romania. The status of the loans exported is as follows:
RON
Indicator
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
Corporate Credit Activity |
|
|
|
|
|
|
-
RON |
79.745.920 |
57,15 |
84.183.631 |
50,39 |
105,56 |
|
-
EUR equivalent |
20.010.519 |
57,15 |
19.910.040 |
50,39 |
99,49 |
|
Retail Credit Activity |
|
|
|
|
|
|
-
RON |
59.792.171 |
42,85 |
82.879.101 |
49,61 |
138,61 |
|
-
EUR equivalent |
15.003.556 |
42,85 |
19.601.509 |
49,61 |
130,64 |
|
Total |
|
|
|
|
|
|
-
RON |
139.538.091 |
100,00 |
167.062.732 |
100,00 |
119,72 |
|
-
EUR equivalent |
35.014.075 |
100,00 |
39.511.549 |
100,00 |
112,84 |
|
Interest paid |
|
|
|
|
|
|
-
RON |
1.699.620 |
89,94 |
9.280.529 |
89,94 |
546,03 |
|
-
EUR equivalent |
426.483 |
89,94 |
2.194.912 |
89,94 |
514,65 |
|
Taxes paid |
|
|
|
|
|
|
-
RON |
189.902 |
10,06 |
1.037.785 |
10,06 |
546,48 |
|
-
EUR equivalent |
47.652 |
10,06 |
245.444 |
10,06 |
515,07 |
|
Total payments |
|
|
|
|
|
|
-
RON |
1.889.522 |
100,00 |
10.318.314 |
100,00 |
546,08 |
|
-
EUR equivalent |
474.135 |
100,00 |
2.440.356 |
100,00 |
514,69 |
|
ATE Bank Romania commission |
|
|
|
|
|
|
-
RON |
8.498 |
- |
46.403 |
- |
546,04 |
|
-
EUR equivalent |
2.132 |
- |
10.975 |
- |
514,77 |
The amount of 40.000.000 EUR
received by ATE Bank Romania from ATE Bank Greece for the exported loans was
used by ATE Bank Romania to continue the development of its business.
The request for loans, expressed by customer category and loan type, at the end of 2009, had the
following features:
RON
Indicator
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
Corporate Credit Activity |
512.895.394 |
85,10 |
749.905.515 |
83,41 |
146,21 |
|
-
for treasury |
194.870.061 |
32,31 |
379.510.857 |
42,21 |
194,75 |
|
-
for investments |
318.025.334 |
52,79 |
370.394.658 |
41,20 |
116,47 |
|
Retail Credit Activity |
90.044.876 |
14,90 |
149.165.146 |
16,59 |
165,66 |
|
-
consumer loans |
75.048.783 |
12,44 |
105.823.166 |
11,77 |
141,01 |
|
-
real estate / mortgage loans |
14.996.093 |
2,46 |
43.341.980 |
4,82 |
289,02 |
|
Total |
602.940.270 |
100,00 |
899.070.661 |
100,00 |
149,11 |
The above data show that, during
2009, the value of the mortgage/real estate loans granted to retail customers
had the largest increase. This was also due to the "FIRST HOME"
programme promoted by the Romanian Government. The Bank joined this programme
due to the fact that the Romanian Government guarantees all the loans granted
under this scheme, for 100% of their value. Under these circumstances, the
value of the mortgage loans granted up to 31.12.2009 in the "FIRST
HOME" programme was 15.812.914 RON, which is the equivalent of 3.739.869
EUR.
Regarding the trend of the
non-performing loans ( loans with a debt services longer than 90 calendar
days), we present the following:
|
Indicator |
31.12.2008 |
31.12.2009 |
% |
Total loans
|
602.940.270 |
899.070.661 |
149,11 |
|
Non-performing loans |
2.145.003 |
2.648.296 |
123,46 |
|
% |
0,36% |
0,29% |
80,55 |
This shows that, during 2009, the
Bank paid a special attention to the evolution of the non-performing loans
(NPL).
The
letter of guarantees issued by the Bank, as part of the total exposure of
the bank, had the following trend:
RON
Letter of guarantee type
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
Payment of custom taxes |
6.000 |
0,04 |
9.060 |
0,02 |
151,00 |
|
Participation in bids |
269.401 |
1,75 |
975.758 |
2,27 |
362,19 |
|
Performance bonds |
9.920.797 |
64,32 |
6.021.470 |
13,99 |
60,70 |
|
Repayment of advances |
1.957.216 |
12,96 |
22.267.321 |
12,14 |
161,68 |
|
Payment for suppliers |
3.231.227 |
20,95 |
5.224.094 |
51,74 |
1.137,70 |
|
Other |
52.901 |
0,25 |
8.551.602 |
19,84 |
16.165,29 |
|
Total |
15.437.542 |
100,00 |
43.049.305 |
100,00 |
278,86 |
The increase of the letters of
guarantee operations followed the general trend of the Bank's activity during
2009.
Guaranteeing
the bank's exposures from loans and letters of guarantee issued represented
one of the main activities of the bank. The evolution of the guarantees was as
follows:
RON
Guarantee type
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
Collateral deposits |
3.755.630 |
0,24 |
4.094.244 |
0,18 |
109,02 |
|
Guarantees from insurance companies |
11.418.353 |
0,74 |
20.354.812 |
0,91 |
178,26 |
|
Financial guarantees |
3.927.420 |
0,25 |
3.593.970 |
0,16 |
91,51 |
|
Mortgages |
1.202.206.353 |
77,88 |
1.666.943.364 |
74,15 |
138,66 |
|
PLEDGES |
105.559.619 |
6,84 |
137.666.736 |
6,12 |
130,42 |
|
Other GUARANTEES |
216.843.063 |
14,05 |
415.292.798 |
18,47 |
191,52 |
|
TOTAL guarantees |
1.543.710.438 |
100,00 |
2.247.945.925 |
100,00 |
145,62 |
|
Exposures from loans |
602.940.270 |
97,50 |
899.070.661 |
95,43 |
149,11 |
|
Exposures from letters of guarantee |
15.437.542 |
2,50 |
43.049.305 |
4,57 |
278,86 |
|
Total exposures |
618.377.812 |
100,00 |
942.119.966 |
100,00 |
152,35 |
|
Degree of coverage |
249,63% |
- |
238,60% |
- |
95,58 |
That shows that, during 2009, an
larger degree of coverage for the Bank's exposures was ensured through
different guarantees.
In 2009 year the bank has improved
his activity on bank-assurance for ATE Insurance Romania, as follows: 1492
insurances for houses, 243 insurance for commercial spaces, 2 for building
works, 1 for equipments, 10 for cars insurances, 1 group insurances for bank’s
employees and 76 for overdraft on accounts of clients. In 2009 year ATE
Insurance has obtain from this insurances incomes representing 1,4 mio RON.
The
bank's participations in the registered equity of other companies were the
following:
RON
Explanation
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
SWIFT |
3.162 |
1,82 |
3.354 |
1,93 |
106,07 |
|
Central Depository |
120.801 |
69,74 |
120.801 |
69,68 |
100,00 |
|
Victoria C.B. |
45.758 |
26,14 |
45.758 |
26,39 |
100,00 |
|
Unileasing |
60 |
0,03 |
60 |
0,03 |
100,00 |
|
Credit Bureau |
3.421 |
1,97 |
3.421 |
1,97 |
100,00 |
|
Total |
173.202 |
100,00 |
173.394 |
100,00 |
100,11 |
The change in the value of the
Bank's participation into SWIFT is due to the depreciation of the domestic
currency, as mentioned in the introductory section of the report.
The
profit and loss account (Annex 2)
The evolution of the Bank's income
and expenses during 2009 is as follows:
|
Indicator |
31.12.2008 |
31.12.2009 |
% |
Total income
|
115.569.732 |
174.072.920 |
150,62 |
|
Total expenses |
111.442.823 |
170.021.555 |
152,56 |
|
Gross
profit |
4.126.909 |
4.051.365 |
98,16 |
The
net income from interest obtained during 2009, in comparison to 2008, is as
follows:
|
Indicator |
31.12.2008 |
31.12.2009 |
% |
Income from interest
|
61.950.287 |
86.917.980 |
140,30 |
|
Interest expenses |
38.482.579 |
50.336.850 |
130,80 |
|
Net
income from interest |
23.467.708 |
36.581.130 |
155,87 |
The main contribution to the
increase of the net income from interest during 2009 was related to the credit
activity, where significant increases of the volume of loans occurred, as
mentioned.
We mention that, during 2009, the
interest rate scheme related to the Bank's assets and liabilities was changed
repeatedly in order for the Bank to remain competitive in the context of the
local market.
The
net income from commissions obtained during 2009, in comparison to 2008, is
as follows:
|
Indicator |
31.12.2008 |
31.12.2009 |
% |
Income from
commissions
|
17.898.507 |
16.603.603 |
92,76 |
|
Expenses related to commissions |
702.714 |
814.863 |
115,95 |
|
Net
income from commissions |
17.195.793 |
15.788.740 |
91,81 |
The reduction of the net income from
commissions during 2009, in comparison to 2008, is due to the Bank's policy, it
accepted to approve reductions in the commissions level (i) in order to attract
new customers, especially for the newly established operational units and (ii)
to promote the new products and services provided to customers.
The
net income from financial operations obtained during 2009, in comparison to
2008, is as follows:
|
Indicator |
31.12.2008 |
31.12.2009 |
% |
Financial income:
|
298.614.081 |
421.377.203 |
141,11 |
|
-
foreign exchange offices |
8.694.055 |
5.898.387 |
67,84 |
|
-
re-evaluations |
289.920.026 |
415.478.816 |
143,30 |
|
Financial expenses |
295.642.036 |
419.063.782 |
141,74 |
|
- foreign exchange offices |
7.252.161 |
4.846.902 |
66,83 |
|
- re-evaluations |
288.389.875 |
414.216.880 |
143,63 |
|
Net financial
income |
2.972.045 |
2.313.422 |
77,83 |
The increase of the Bank's foreign
currency assets, in the context of the domestic currency depreciation in
relation to EUR and USD led, during 2009, to a decrease of the Bank's net
income from the re-evaluation of the Bank's assets and liabilities denominated
in foreign currency.
The
credit risk specific provisions had the following influence on the profit
and loss account of 2009:
|
Indicator |
31.12.2008 |
31.12.2009 |
% |
Income from provisions
|
28.697.800 |
63.386.350 |
220,87 |
|
Expenses related to provisions |
30.311.324 |
62.918.377 |
207,57 |
|
Difference |
-
1.613.524 |
+
467.937 |
- |
During 2009, the Bank monitored the
evolution of the credit risk specific provisions persistently. We have focused
on improving the customers debt service with the view to paying the overdue
instalments and interest. In addition, we have also focused on building the
guarantees portfolio, that led to the decrease of the gross exposure from loans
and interest to the bank's customers.
The
category of other operating income and other operating expenses, at the end
of 2009, in comparison to 31.12.2008, was including the following:
|
Indicator |
31.12.2008 |
31.12.2009 |
% |
Other income
|
4.028.789 |
4.837.123 |
120,06 |
|
Other expenses |
5.368.356 |
5.468.437 |
101,86 |
|
Difference |
-
1.339.567 |
-
631.314 |
47,12 |
During 2009, the income from rent
and from recovering the debts from customers under enforcement procedures has
also increased. In addition, we acted
toward decreasing some of the expenses. Thus, the unfavourable influence over
the Bank's profitability was reduced by 52,88%.
The
Bank's operation expenses on 31.12.2009, in comparison to 31.12.2008, are
the following:
|
Indicator |
31.12.2008 |
31.12.2009 |
% |
Administrative expenses
|
31.700.385 |
42.287.165 |
135,24 |
|
Depreciation of fixed assets |
4.873.802 |
8.195.863 |
168,16 |
|
Total |
36.574.187 |
50.483.028 |
138,03 |
The main causes leading to the
increase of the expenses are linked to the establishment of new operational
units during 2009, which generated total expenses of 4.031.815 RON, and an
increase by 3.322.061 RON of the expenses related to the depreciation of
tangible and intangible assets.
During 2009, new branches have been
established in Giurgiu, Bacau, Focsani, new agencies have been established in
Brasov, Lacul Tei, Otopeni and the working sites in Bucharest (Ferdinand and
Grand Arena), Arad and Cluj – Napoca have become operational. They all registered
losses at the end of the financial year.
The
general administrative expenses had the following trend:
|
Indicator |
31.12.2008 |
31.12.2009 |
% |
Expenses related to salaries and similar elements
|
17.613.716 |
22.466.968 |
127,55 |
|
-
salaries |
13.994.604 |
17.762.285 |
126,92 |
|
-
social security contributions |
3.589.072 |
4.646.314 |
129,45 |
|
-other expenses related to salaries |
30.040 |
58.369 |
194,30 |
|
General administrative expenses |
14.086.669 |
19.820.197 |
140,70 |
|
- administrative expenses |
12.169.941 |
16.864.496 |
138,58 |
|
-other administrative expenses |
1.916.728 |
2.955.702 |
154,21 |
|
Total |
31.700.385 |
42.287.165 |
133,40 |
The Bank had a prudential policy in
regard to the employees. Even if the number of operational units has increased,
the total number of employees at the end of 2009 was 342 in comparison to 349
at the end of 2008. That was possible due to the fact that the number of
auxiliary personnel (secretaries, drivers, maintenance personnel) was reduced
in order for specialised personnel (banking analysts and administrators) to be
hired.
The medium gross salary at the end
of 2009, in the Romanian banks system
was 5.239 RON and the medium gross salary in ATE Bank Romania, on the
same date, was 4.177 RON.
The expenses related to the rent
paid by the Bank for the operational units, during 2009, reached 7,7 million
RON. Having regard to the trends of the real estate market, during the second
half of 2009, the Bank renegotiated all the rental agreements. Therefore the
expenses related to rent decreased by approx. 30%.
Bank's
investments during 2009
The expansion of the local units
network of the bank has generated the following investment expenses:
RON
|
Local
unit |
Investment
expenses |
|
Giurgiu |
415.079 |
|
Bacau |
461.957 |
|
Focsani |
465.380 |
|
Brasov |
356.623 |
|
Lacul Tei |
375.753 |
|
Otopeni |
314.464 |
|
Ferdinand
working site |
218.120 |
|
Grand
Arena working site |
218.120 |
|
Arad
working site |
218.120 |
|
Cluj
Napoca working site |
218.120 |
|
Total |
3.261.736 |
Building the 5th floor of the Bank's Headquarters in
Bucharest, Calea Grivitei no. 24, represented an expense of 5.901.790 RON.
During 2009, 1.188.762 RON were
spent on software programmes and licences required for the IT system of the
Bank.
Space re-compartmenting at the Bank's
main headquarters cost 444.222 RON.
During 2009, the Bank's ATMs network
expanded from 24 units to 44 units. The amount of 903.620 RON was spent for the
20 new ATMs.
Overall, the total investment
expenses during 2009 had the value of 16.424.519 RON.
New
bank products and services introduced in 2009
During 2009, the Bank launched the
card overdraft associated to the VISA debit card for retail customers. In
addition, all the cards under VISA logo are now accepted at the ATMs of ATE
Bank Romania.
During 2009, the Bank concluded an
agreement with the competent local authority, regarding the collection of the
children allowances in accounts opened at the operational units of the Bank.
Also during 2009, the Bank concluded another agreement with the competent local
authority regarding the collection of the pensions in accounts opened at the
operational units of the Bank.
A bancassurance service was launched
in cooperation with ATE Insurance Romania, and it is related to an insurance
package attached to the debit card offered by the Bank.
Personnel
training
The Bank's personnel was trained in
different professional training programmes. Professional training sessions have
been organised at the Head Office of the Bank, addressed to the employees in
the operational units, with topics related to retail credit activity norms,
corporate credit activity norms and to the Bank's offer linked to the
bancassurance product. In addition, 33 employees of the Bank participated in
different professional training classes outside the Bank. During 2009, the
Bank's expenses related to the professional training of the employees had the
value of 155.100 RON.
Bank's
customers
The general expansion of the bank's
activity in 2009 led to the increase of the customers number. The evolution of
the customers number in 2009 was the following:
RON
Indicator
|
31.12.2008 |
% |
31.12.2009 |
% |
% |
|
Total no. of customers, of which: |
11.059 |
100,00 |
14.044 |
100,00 |
126,99 |
|
Legal persons |
3.316 |
29,98 |
3.375 |
24,03 |
101,77 |
|
Natural persons |
7.743 |
70,02 |
10.669 |
75,97 |
137,78 |
The development of the retail
activity of the bank led to an increase of the total customers - natural
persons larger than the one of the number of customers - legal persons.
Conclusion
We propose the acknowledgement of
this report at the level of the Board of Directors and its submittal to the
General Assembly of the Shareholders for approval. Referring to the allocation
of the gross profit obtained in 2009, the following can be detailed:
|
-
Gross profit |
4.051.365
RON |
|
-
Profit tax |
1.186.257
RON |
|
-
Net profit |
2.865.108
RON |
|
-
Statutory allocation to the reserve fund |
202.568
RON |
|
-
Profit to be allocated depending on the GAS decision |
2.662.540
RON |