Bosnia and Herzegovina

Annual Report 2015

PROCREDIT BANK D.D. SARAJEVO

Financial statementsfor the year ended 31 December 2015

F I N A N C I A L S TAT E M E N T S

PROCREDIT BANK D.D. SARAJEVOFinancial statements for the year ended 31 December 2015

Contents

Page

Independent auditor’s report

Statement of comprehensive income (Income statements) 5

Statement of financial position (Balance sheet) 6

Statement of changes in equity 7

Cash flow statement 8

Notes to the financial statements 9 - 63

PROCREDIT BANK D.D. SARAJEVOFinancial statements for the year ended 31 December 2015

Contents

Page

Independent auditor’s report

Statement of comprehensive income (Income statements) 5

Statement of financial position (Balance sheet) 6

Statement of changes in equity 7

Cash flow statement 8

Notes to the financial statements 9 - 63

A N N U A L R E P O R T 2015

F I N A N C I A L S TAT E M E N T S

STATEMENT OF COMPREHENSIVE INCOME

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

Note 2015 2014

Interest and similar income 24,955 25,487Interest expense and similar charges (8,233) (9,266)Net interest income 6 16,722 16,221

Fee and commision income 6,199 5,639Fee and commision expense (1,215) (1,172)Net fee and commision income 7 4,984 4,467

Foreign exchange, net 8 398 386Other operating income 9 484 590

Operating income 22,579 21,664

Personnel expenses 10 (8,698) (8,933)Depreciation and amortisation (1,961) (2,010)Other operating expenses 11 (9,885) (8,997)Net impairment and provision losses 12 (6,345) (1,392)

(4,310) 332

Income tax 13 (524) (236)

Total comprehensive (loss) / income for the year (4,834) 96

STATEMENT OF FINANCIAL POSITION

A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

Note31

December2015

31 December

2014AssetsCash and cash equivalents 14 69,114 44,754Obligatory reserves with Central Bank 15 21,723 21,686Loans and advances to customers 16 296,454 300,130Financial assets available for sale 40 39Tangible and intangible assets 17 17,700 16,869

18 261 785Other assets 19 2,282 2,372Total assets 407,574 386,635

LiabilitiesDeposits from customers 20 264,359 257,102Borrowings 21 83, 387 69.006Subordinated debt 23 8,998 16,031Provisions 23 713 321Other liabilities 24 914 1,029Total liabilities 358,417 343,489

EquityShare capital 25 63,303 52,458Share premium 293 293Statutory reserves 228 218Regulatory reserve for credit losses 863 863Accumulaties losses (15,530) (10,686)Total equity 49,157 43,146

Total liabilities and equity 407,574 386,635

M April 2016, and they are hearby signed by:

Director, Edin Hrnjica Executive Director, Edina Vuk

F I N A N C I A L STAT E M E N T S

STATEMENT OF CHANGES IN EQUITY

The accompanying notes on pages to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

Share capital

Sharepremium

Statutoryreserves

Regulatory reserve

for credit losses

Accumulated losses Total

Balance at 1 January 2014 52,458 293 23 863 (10,587) 43,050Isuue of share capital - - - - - -

- - - - 96 96Transfer to statutory reserves - - 195 - (195) -

Balance at 31 December 2014

52,458 293 218 863 (10,686) 43,146

Balance at 1 January 2015 52,458 293 218 863 (10,686) 43,146Issue of share capital 10,845 - - - - 10,845

- - - - (4,843) (4,834)Transfer to statutory reserves - - 10 - (10) -

Balance at 31 December 2015 63,303 293 228 863 (15,530) 49,157)

A N N U A L R E P O R T 2015

CASH FLOW STATEMENT

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

Note 2015 2014

Operating activities(4,310,) 332

Adjustments:Depreciation and amortisation 1,961 2,010Imapirment losses 12 6,345 1,392Changes in other provisions 392 (19)

(524) -Loss on disposal of property, plant and equipment 197 31

changes in operating assets and liabilities4,061 3,747

(Increase) / decrease in operating asstes

Obligatory reserve with Central Bank (37) (1,340)Loans and advances to customers (2,669) (27,416)Other assets 628 776Increase / (decrease) in operating liabilitiesDepositis from customers 7,293 7,151Other liabilities (114) 123

Net cash from / (used in) operating activities 9,162 (16,959)

Investing activitiesPurchase of property and equipment (2,750) (449)Purchase of intangible assets (254) (533)

(1) -(3,005) (982)

Financing activitiesIssued share capital 10,845 -Proceeds from borrowings and subordinated debt 86.364 49,027Repayments of borrowings nad subordinated debt (79,006) (30,313)

18,203 18,714

Net increase in cash and cash equivalents 24,360 773Cash and cash equivalents at 1 January 14 44,754 43,981Cash and cash equivalents at 31 December 69,114 44,754

F I N A N C I A L S TAT E M E N T S

1. General information

ProCredit Ban d.d. Sarajevo (further “the Bank”) is incorporated to perform all banking activities in accordance with the Law on Banks.

The Bank has been registered as a joint stock company domiciled in Bosnia and Herzegovina. ProCredit Bank d.d. Sarajevo is part of a global network of financial institutions, managed and controlled by ProCredit Holding AG & Co. KGaA.

The Bank in incorporated to perform all banking activities in accordance with the Law and the main activities include commercial lending, receiving of deposits, foreign exchange deals, and payment operation services in the country and abroad and retail banking services. In addition it provides trade finance facilities to companies for export and import purposes.

The address of its registered office is as follows:

Head office: Sarajevo, Franca Lehara bb, Bosnia and Herzegovina

Branch offces:

Sarajevo, Franca Lehara bb

Tuzla, I Inžinjerske brigade bbMostar, Biskupa Čule bb Banja Luka, Braće Potkonjaka 4

As of 31 December 2015 ProCredit Bank d.d. Sarajevo employed 248 employees (2014: 291 employees)

Menagement BoardDirectorExecutive DirectorExecutive Director

Supervisory BoardPresidentMemberMemberMemberMember

Audit BoardPresidentMemberMemberMemberMember

Service points:

Sarajevo, Star Grad, Zelenih Beretki 8Sarajevo, Ilidža, Ibrahima Ljubovića 20Sarajevo, Grbavica, Topal Osman Paše 22/26Sarajevo, Stup, Pijaćna 14KPosušje, Fra Grge Martića bbBijeljina, AtinskaZavidovići, 8. Marta bbTravnik, Bosansa bbBihać, Safet Bega Bašagića bbZenica, Londža 77

Edin HrnjicaEdina VukMaja Mehmedović

Borislav KostadinovIgor AnićEmilija SpirovskaSandrine MassianiSvetlana Tolmačeva Dingarac

Vesna Paunovska PetroskaMartin GodemannGazmend RustemiVioleta IvankovićRamyana Velichkova Todorova

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

20 A N N U A L R

E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 2 1

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

2 2 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 2 3

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

2 4 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 2 5

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

2 6 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 2 7

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

2 8 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 2 9

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

3 0 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 3 1

The accompanying notes on pages 9 to 62 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

3 2 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 62 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 3 3

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

3 4 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 3 5

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

3 6 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 3 7

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

3 8 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 3 9

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

4 0 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 4 1

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

4 2 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 4 3

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

4 4 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 4 5

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

4 6 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 4 7

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

4 8 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 4 9

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

5 0 A N N U A L R E P O R T 2015

F I N A N C I A L S TAT E M E N T S 5 1

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

5 2 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 5 3

5 4 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 5 5

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

5 6 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 5 7

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

5 8 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 5 9

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

6 0 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 6 1

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

6 2 A N N U A L R E P O R T 2015

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated

F I N A N C I A L S TAT E M E N T S 6 3

The accompanying notes on pages 9 to 63 from an integral part of these financial statements.

All amounts are in BAM thousands, unless otherwise indicated