9th Interbalkan Forum of Banking Associations

Podgorica, May 9th, 2008

Montenegro and Banking Montenegro and Banking Sector in 2007Sector in 2007

M. Sc. Econ Nebojsa DjokovicM. Sc. Econ Nebojsa Djokovic

Advisor in AMB Advisor in AMB

Email: udruzenjebanaka@cg.yuEmail: udruzenjebanaka@cg.yu

www.ubcg.infowww.ubcg.info

Phone: 00382 20 232 028Phone: 00382 20 232 028

Podgorica-MontenegroPodgorica-Montenegro99thth Interbalkan Forum 2008 Interbalkan Forum 2008

CONTENT OF THE PRESENTATIONCONTENT OF THE PRESENTATION I Montenegro in briefI Montenegro in brief II Presenting AMB II Presenting AMB III Performance Results of the III Performance Results of the

Banking Sector in 2007Banking Sector in 2007

I Montenegro in I Montenegro in briefbrief

FLAG FLAG

I Montenegro in brief I Montenegro in brief

Montenegro is located in the Western Montenegro is located in the Western Balkans, bordering Serbia, Croatia, Balkans, bordering Serbia, Croatia, BiH and AlbaniaBiH and Albania

The country has 293 kilometres of The country has 293 kilometres of coastlinecoastline

Population: 620.145Population: 620.145 Area: 13.812 km2Area: 13.812 km2

I Montenegro in briefI Montenegro in brief

MAP OF MONTENEGROMAP OF MONTENEGRO

II Presenting AMBII Presenting AMB

Constituent Assembly-December Constituent Assembly-December 7,20007,2000

The Association members are all The Association members are all banks of Montenegrobanks of Montenegro

Today we have 11 membersToday we have 11 members General Secretary Mr. Mirko Radonjic General Secretary Mr. Mirko Radonjic

I Montenegro in briefI Montenegro in brief

Economy Economy

Since 2002, the national currency is Since 2002, the national currency is EUROEURO

Before that, it was DEM and Yugo. Before that, it was DEM and Yugo. DinarDinar

I Montenegro in briefI Montenegro in briefEconomyEconomy

Description/PeriodDescription/Period 20062006 20072007

GDP(in mil. euros)GDP(in mil. euros) 2.148,902.148,90 2.278,142.278,14

Per capitaPer capita 3.4433.443 3.6453.645

GDP growth rateGDP growth rate 8,68,6 7,07,0

Living costs-annual rateLiving costs-annual rate 2,82,8 7,77,7

Retail prices –annual rateRetail prices –annual rate 2,02,0 8,08,0

Number of unemployed Number of unemployed (December)(December)

38.87638.876 31.46931.469

Unemployment rateUnemployment rate 14,73%14,73% 11,92%11,92%

Average gross income in EURAverage gross income in EUR 433433 497497

Average net income in EURAverage net income in EUR 282282 338338

Number of employed people Number of employed people (December)(December)

150.746150.746 159.223159.223

Employed people–annual Employed people–annual averageaverage

150.800150.800 156.408156.408

I Montenegro in briefI Montenegro in briefEconomyEconomy

The largest foreign investors in the country have The largest foreign investors in the country have been : Russia, Cypress, UK…been : Russia, Cypress, UK…

Total in 2007 – 1.007.683.909 euros Total in 2007 – 1.007.683.909 euros Out of this amount, investments in companies and Out of this amount, investments in companies and

banks in 2007 : 377.589.177 eurosbanks in 2007 : 377.589.177 eurosSale of property abroad 61.930 eurosSale of property abroad 61.930 eurosSale of property in the country: 514.357.979 eurosSale of property in the country: 514.357.979 eurosInter-company debt: 115.674.822 eurosInter-company debt: 115.674.822 euros

I Montenegro in briefI Montenegro in briefEconomy Economy

The largest foreign investors: in EUR The largest foreign investors: in EUR Russian Federation (187.388.327)Russian Federation (187.388.327) Cypress (108.994.331)Cypress (108.994.331) Switzerland (75.111.921)Switzerland (75.111.921) UK (70.426.932) UK (70.426.932) Austria (60.765.059) Austria (60.765.059) Serbia (43.009.958)Serbia (43.009.958) USA (41.952.448)USA (41.952.448)

II Presenting AMBII Presenting AMB

The Association was founded in Podgorica on 7The Association was founded in Podgorica on 7thth December 2000.December 2000.

The Association is a non-profit organization The Association is a non-profit organization established to advance its member’s business, established to advance its member’s business, organize and establish cooperation with local and organize and establish cooperation with local and international partners, advocate and protect international partners, advocate and protect common interests of its members before the common interests of its members before the Central Bank, competent authorities and Central Bank, competent authorities and organizations and international organizations and organizations and international organizations and institutions.institutions.

II Presenting AMB II Presenting AMB Members :Members :

Montenegrobanka NLB PodgoricaMontenegrobanka NLB Podgorica Hipotekarna Bank PodgoricaHipotekarna Bank Podgorica Podgoricka Bank SGG Podg.Podgoricka Bank SGG Podg. Montenegrin Commercial Bank OTP Group Podg.Montenegrin Commercial Bank OTP Group Podg. First Bank of Montenegro NiksicFirst Bank of Montenegro Niksic Atlasmont Bank Podg.Atlasmont Bank Podg. Invest Bank Montenegro Pod.Invest Bank Montenegro Pod. Commercial Bank BudvaCommercial Bank Budva Opportunity Bank Pod.Opportunity Bank Pod. First Financial Bank PodgoricaFirst Financial Bank Podgorica Hypo-Alpe –Adria Bank PodgoricaHypo-Alpe –Adria Bank Podgorica

II Presenting AMBII Presenting AMB

AMB is member of IBF AMB is member of IBF AMB is associate member of EBF AMB is associate member of EBF AMB has good cooperation with ATTF AMB has good cooperation with ATTF

(Luxemburg) and WIB (Poland) (Luxemburg) and WIB (Poland) AMB has own magazine The Banker AMB has own magazine The Banker

II Presenting AMBII Presenting AMBCommissions of the AMBCommissions of the AMB

Commission for Prevention of Money LaunderingCommission for Prevention of Money Laundering Internal Audit CommissionInternal Audit Commission Retail CommissionRetail Commission Legal Issues CommissionLegal Issues Commission In-land Payment Operations Co.In-land Payment Operations Co. International Transactions Co.International Transactions Co. Comm.for Monetary and Credit Pol.Comm.for Monetary and Credit Pol. Comm.for Standardisation of Banks ProceduresComm.for Standardisation of Banks Procedures Accounting CommissionAccounting Commission

III Performanse Results of the III Performanse Results of the Banking Sector in 2007Banking Sector in 2007

General Data from the Balance General Data from the Balance Sheet of Banks (in 000 EUR)Sheet of Banks (in 000 EUR)

DescriptionDescription 31.12.200631.12.2006 31.12.2007.31.12.2007. % Variation% Variation

Total AssetsTotal Assets 1.431.4151.431.415 2.976.3632.976.363 107,9107,9

Total CapitalTotal Capital 148.760148.760 236.937236.937 59,359,3

III Performance Results in the III Performance Results in the Banking Sector 2007Banking Sector 2007

Ownership structure of total bank Ownership structure of total bank capital, end of year, %capital, end of year, %

Description Description /Period/Period

3131 Dec Dec 20062006 3131 Dec Dec 20072007 % % VariationVariation

State State 33 22 -33-33..33

DomDomestic estic private capitalprivate capital 1818 2222 2222..22

Foreign Foreign capitalcapital 7979 7676 -3-3..88

TotalTotal: : 100100 100100

III Performance Results of the Banking Sector III Performance Results of the Banking Sector in 2007in 2007

Loans and leasing receivablesLoans and leasing receivables

Description/Description/PPerioderiod

3131 Dec Dec 0606 3131 Dec 07 Dec 07 % % Variation Variation

Total loans and receivables Total loans and receivables in leasing in leasing

847.166847.166 2.246.6142.246.614 165,2165,2

Corporate loansCorporate loans 474.058474.058 1.381.6371.381.637 191,4191,4

Loans to physical Loans to physical personspersons

((including credit cardsincluding credit cards) )

311.175311.175 795.035795.035 155,5155,5

Other Other 212.314212.314 352.795352.795 66,266,2

III Performance Results in Banking Sector in III Performance Results in Banking Sector in 20072007

Total bank deposits Total bank deposits

DescriptionDescription//

PeriodPeriod

3131 Dec Dec 0606 3131 Dec Dec 0707 % % VariationVariation

Total depositsTotal deposits 11,,075075,,766766 22,,091091,,074074 9494..44

Corporate Corporate ddepoeposits sits

364364,,076076 718718,,929929 9797..55

DepoDepossitits of s of physical personsphysical persons

499499,,376376 11,,019019,,350350 104104..11

OOther ther 212212,,314314 352352,,795795 6666..22

III Performance Results in Banking Sector in III Performance Results in Banking Sector in 20072007

FinanFinancial results of cial results of banks in EUR banks in EUR thousands thousands

Description/Description/PeriodPeriod

20062006 20072007 %%VariationVariation

Profit Profit 99,,009009 1313,,912912 5454..44

III Performance Results of III Performance Results of tthe Banking Sector he Banking Sector in 2007in 2007

Average of available liquid assets and Average of available liquid assets and bank payments madebank payments made,, in euro in euro thousandsthousands

DescriptionDescription//

PeriodPeriod20062006 20072007

Available Available liquid bank liquid bank assetsassets

267267,,724724 472,216472,216

Payments Payments made made

27,33727,337 46,70846,708

III Performance of the III Performance of the Banking sector in 2007Banking sector in 2007

Interest rates Interest rates

Period Period 20062006 20062006 20072007 20072007

Description/month Description/month Nominal Nominal RealReal Nominal Nominal Real Real

II 10.7510.75 11.9611.96 8.958.95 9.849.84

IIII 10.8910.89 12.0012.00 8.688.68 9.509.50

IIIIII 10.8810.88 12.0412.04 8.568.56 9.319.31

IVIV 10.6310.63 11.7011.70 8.568.56 9.339.33

VV 10.3510.35 11.0911.09 8.438.43 9.099.09

VIVI 10.3310.33 11.2711.27 8.338.33 9.079.07

VIIVII 10.1410.14 11.1711.17 8.248.24 9.089.08

VIIIVIII 9.849.84 10.9710.97 8.228.22 9.039.03

IXIX 9,629,62 10,8110,81 8,438,43 9,039,03

XX 9,509,50 10,5610,56 8,488,48 9,049,04

XIXI 9,279,27 10,3410,34 8,438,43 9,149,14

XIIXII 9,069,06 9,949,94 8,348,34 9,099,09

PPODGORICA, ODGORICA, MMontenegro, 9ontenegro, 9thth IBF IBF of of Banking AssociationsBanking Associations

THANK YOU FOR YOUR ATTENTION !THANK YOU FOR YOUR ATTENTION !