ANNUAL REPORT FOR SLATINSKA BANKA d.d. SLATINA · DEVELOPMENT OF SLATINSKA BANKA d.d. SLATINA...
Transcript of ANNUAL REPORT FOR SLATINSKA BANKA d.d. SLATINA · DEVELOPMENT OF SLATINSKA BANKA d.d. SLATINA...
ANNUAL REPORT FOR
SLATINSKA BANKA d.d. SLATINAFOR 2012
SLATINSKA BANKA d.d.Vladimira Nazora 2, 33520 SlatinaTel: 033/ 840 400Fax: 033/ 551-566, 840 429URL: www.slatinska-banka.hrE-mail: slatinska-banka slatinska-banka.hr@
ANNUAL REPORT
FOR 2012.
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CONTENT
REPORT OF THE MANAGEMENT ON THE BANK'S FINANCIAL
POSITION AND ANALYSIS OF BUSINESS RESULTS
DEVELOPMENT OF SLATINSKA BANKA d.d. SLATINA
BANK BUSINESS ANALYSIS IN 2012
INDEPENDENT AUDITORS' REPORT AND FINANCIAL STATEMENTS
ANNUAL FINANCIAL STATEMENTS ACCORDING TO
THE DECISION ON THE CONTENTS STRUCTURE OF THE ANNUAL
FINANCIAL STATEMENTS OF THE CROATIAN NATIONAL BANK
CORPORATE MANAGEMENT CODEX
ORGANISATIONAL STRUCTURE OF SLATINSKA BANKA d.d.
SLATINSKA BANKA d.d. - CONTACTS
SLATINSKA BANKA d.d. - BUSINESS NETWORK
CORRESPONDENTS
MANAGEMENT REPORT ON THE BANK'S FINANCIAL POSITIONAND BUSINESS RESULT ANALYSIS
The entire finances sector was still beset with very complex business conditions in 2012. Non-liquidity of thebusiness sector, rise in unemployment, drop in business activities and insufficient investments had as itsconsequence further stagnation of the real business sector, and thereby a decrease of general standard of living ofCroatians.
2012 marked 20 years of successful Bank business. Through that period, the Bank gained a reputation as a stableregional financial institution.
Despite high challenges of today's business conditions and environment, Slatinska banka d.d realized its continuityof positive business performance in 2012. It realized HRK 4.997 million net profit and the increase of its Balance forapproximately HRK 111 million, which is a rise of 8.34%, and brings us to the balance of HRK 1,442 million. Alongwith the above described growth, the Bank kept a satisfactory level of capital adequacy, 16.84% .
The increase of net operative result was realized through a pro-active approach toward clients and better assetallocation in 2012 in relation to 2011.
Results were realised in conditions of lowered placements to the retail sector, since that segment, due to increasinginsecurity of future receivables due to increased unemployment, meant less interest in bank loans in 2012.
However, through a higher-quality approach to clients, redesign of loan conditions and improvement of placementapproval techniques we managed to realize the sought-after dynamic of placements to clients-individuals by theend of 2012, which is a trend continuing in 2013.
Following the above trends, the Bank then centred its efforts on SME's, where high placement rates were achieved;loans to legal entities at the end of the year amounted to approx. HRK 372.8 million, or 25.85% of total assets.
During 2012, business of Slatinska banka d.d. enjoyed stable liquidity all year round, without any new domestic orforeign debts, which, in turn, allowed us to finance other financial institutions.
As far as Bank asset sources are concerned, deposits totalled HRK 1,056 mil., showing our clients trusted our safe,stable business. Through collection of primary asset sources, mainly in retail, the Bank made a base forplacements in retail and company business, keeping an eye on business risks and client credit rating.
During 2012, the bank also accented rising profitability of its organizational units (branches).The new branch office Molve allowed new clients from that region to use the Bank services in new, modern businesspremises.
Significant investments were placed in the expansion of the ATM network, raising internet banking security,development of credit- and card-based business, as well as continual education of Bank staff.
Development in 2012 targeted financial centres in Osijek, Zagreb and Rijeka, where activities of raising the level ofbusiness and profitability will be performed during 2013.
Results achieved so far, as well as the continuity of business are proof of the clients' and business partners' trust instable, safe and profitable functioning of the Bank, bearing in mind at all times its solvency, which is a good base forfurther growth and development in the coming period.
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DEVELOPMENT OF SLATINSKA BANKA d.d. SLATINA
SLATINSKA BANKA d.d. was founded 9 October 1992 and is the only banking institution seated in the County ofVirovitica and Podravina. The seat of the Bank is at Vladimira Nazora 2, Slatina.
2012 was the 20th consecutive year of successful business and presence on the financial market of the Republic ofCroatia for the Bank.In 2012 the Bank activities were also centred around retain banking, both with respect to placements and inreceiving deposits, and in offering other banking services. However, a more significant portion of activities of theBank is being allocated to the economic/business segment – especially that of financial monitoring of clients.
The Bank is continually investing in development and improvement of its current services, working to satisfy asmuch as possible the ever more dynamic needs of the market and the Bank’s clients.
The Bank offers its services in 3 financial centres, 13 branches and 12 branch offices: (in counties:) Virovitičko –podravska, Osječko – baranjska, Požeško – slavonska, Brodsko – posavska, Bjelovarsko – bilogorska, Koprivničko– križevačka, Primorsko – goranska, Vukovarsko - srijemska and the City of Zagreb.In addition to the business network of bank offices, banking services can be enjoyed through other distributionchannels such as Internet banking and the EFTPOS network of bank machines.
In 2012 we opened a branch office in Molve, whereby the Banka further stepped into that particular region, alongwith the branch in Koprivnica.
During 2012 the Bank installed ATM's in Slavonski brod and Pitomača, in addition to the ones already present inSlatina, Virovitica, Našice, Požega, Daruvar, Osijek, Ilok, Koprivnica, Valpovo, Rijeka, Donji Miholjac, akovo,Zagreb and Orahovica.ATM’s in Našice, Požega, Osijek, Ilok, Slatina and Virovitica have day-and-night vaults that can be used 24 hours aday, 7 days a week, without having to wait in queues in the Bank itself.
Activities in connection with the conformance to legal and other regulations have continued. The project of makingthe CNB report software has been completed, a new project of conforming with the PCI DSS standard has beeninitiated, as well as the project of migration of the Bank credit card data to DDA chip technology.
Within the cark sector, the Bank received its VISA membership, thereby allowing VISA cards on the Bank’s ATM’sand EFTPOS devices.
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Despite very difficult business conditions in 2012, the continuity of the Bank’s positive business resultscontinued, primarily reflecting in the increased Bank balance and positive active business results.
2012 saw the balance grow for HRK 111,056, or 8.34%, whereby the value of the balance reached HRK1,442,257 thousands.
The growth of the balance is mainly due to the increase in retail deposits, which have nominally grown for HRK38,612,000 in 2012, and which make up 62.46% of the Bank’s total asset sources.
The largest increase in placements was in the segment of loan placement to companies, with the nominalgrowth of HRK 106,129,000.
Profit after taxes for the period from 1 Jan. to 31 Dec. 2012 amounted to HRK 4.997.000, or 50.18% morethat during the same period in 2011.
Interest income make up 79.44% of total income, growing 0.65% with respect to 2011, while interest expenses(making up 47.93% of total expenses) grew 2.07%.
Growth of assets per employee was realized in 2012, being a precondition for Bank productivity increase.
The following is the structure of asset sources and placement structure by sector.
BANK BUSINESS ANALYSIS IN 2012
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BANK BUSINESS INDICATORS
2012. 2011.
(u 000 kuna)
ASSETSGROSS PROFITNET PROFITNET INTEREST INCOMENET INCOME FROMCOMMISSIONS AND FEES
TOTAL CAPITALGUARANTEE CAPITALCAPITAL ADEQUACY
RETURN ON ASSETSRETURN ON CAPITALEXPENSE TO INCOME RATIOASSETS/EMPLOYEESNUMBER OF EMPLOYEES
1.442.2576.4034.997
36.581
10.077
175.294166.10716,84%
0,44%2,85%
79,49%8.013
180
1.331.2014.5773.327
37.010
10.104
173.469168.23418,86%
0,34%1,91%
85,54%7.651
174
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ASSET SOURCE STURCTURE BY SECTOR
2012. % 2011. %
(in thousands of Kuna)
61.61755.610
199.398900.80549.533
175.294
1.442.257
4,273,86
13,8362,463,43
12,15
100
89.52760.81296.889
862.19348.311
173.469
1.331.201
6,734,577,28
64,773,62
13,03
100
ECONOMYNON-ECONOMYBANKSRETAILOTHER SOURCESCAPITAL AND RESERVES
TOTAL
SPLACEMENT STRUCTURE BY SECTOR
2012. % 2011. %
(in thousands of Kuna)
372.84823.641
128.514382.039257.884
431276.900
1.442.257
25,851,648,91
26,4917,880,03
19,20
100
266.71917.342
196.659384.099231.386
431234.565
1.331.201
20,041,3
14,7728,8517,380,03
17,62
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ECONOMYNON-ECONOMYBUSINESS BANKSRETAILDEBT SECURITIES
OTHER PLACEMENTS
TOTAL
EQUITY (OWNERSHIP) SECURITIES
ASSET SOURCE STURCTURE 31 DEC. 2012
PLACEMENT STRUCTURE 31 DEC. 2012
Slatinska banka d.d. continues to retain its position in the retail banking segment, thanks to its continueddevelopment of business and product/service quality, coupled with continual market monitoring.Through following market trends and increasing the number of its services and introducing new technologies, theBank is able to offer to its clients traditional and accepted forms of savings, (primarily) non-purpose loans andvarious transaction services.The confirmation of the brand and confidence in Slatinska bank services is the increase in retail sources, whichmake up high 62.46% of all Bank sources.In total retail deposits, term deposits comprise 86.87%, which allows the Bank manageable liquidity.Deposits are constantly on the rise, growing 4.48% or HRK 38 mil. in 2012 in relation to the previous year.Despite the decrease in retail placements in 2012 across the entire banking sector, this decrease was minimal withSlatinska banka d.d. In addition to re-designing our credit lines and adjusting them in accordance with thedemands of more competitive surroundings, technology of credit lines for individuals has been significantlyupgraded, and our business policy has turned toward targeted groups - all aimed at increasing retail placements.This new approach resulted in positive trends toward the end of 2012, which also continued in 2013.Retail placements are still a major part of total Bank placements with 26.49% of total placement structure.In addition to investing in our business network, the Bank is continually developing and improving direct distributionchannels. Following market demands and new trends in technology, the Bank also incorporated new servicesthrough its branch network, such as SMS banking for users of current and company accounts, Mastercard, Internetbanking, standing orders for payment of utility bills, loan repayment, etc., and the clients will soon be able to useMBplus instalment plan.During 2012, we continued to invest in our ATM network, installing new machines in Pitomača and Slavonski brod.The Bank is continually adapting to the market in order to offer its clients sufficient financial backing in order toconstruct stable, long-term partnerships built on client trust and satisfaction.Special care is given to training our staff in sales techniques and product & service knowledge through organisingseminars, lectures and workshops.
RETAIL BANKING
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RETAIL DEPOSITS
31 DEC. 2012 % 31 DEC. 2011 %
(in thousands of Kuna)
118.265
782.540
900.805
64.64653.619
189.369593.171
13,13
86,87
100
7,185,95
21,0265,85
110.650
751.543
862.193
55.25255.398
180.769570.774
12,83
87,17
100
6,406,43
20,9766,20
SIGHT DEPOSITS
TERM DEPOSITS
TOTAL:
in HRKIn foreign currency
in HRKIn foreign currency
Due to tougher conditions in the retail loans/credits sector, the Bank made a significant turn in 2012 in the segmentof business loans/credits.Legal entity placements, i.e. loan placements in 2012 were approximately HRK 396 mil., or 27.46% of total Bankplacements. This represents a nominal increase of loan placements of HRK 112 mil.In accordance with market demands, legal entity business primarily concerns financial crediting of SME's andtradesmen/craftsmen, both from own sources and from assets put up by the Croatian Bank for Reconstruction andDevelopment (CBRD) and through credit lines in cooperation with local governments.In addition to better cooperation with HBOR, allowing the Bank greater freedom in using HBOR credit sources, in2012 the Bank also concluded an agreement with Hamag Invest, aimed at constructing a financial model whichwill in a best way offer a full, high-quality financial service suited for dynamic market conditions.In addition to SMEs and trades, the Bank actively credits local government institutions through CBRD credit lines,solving developmental and infrastructural financial problems and laying quality foundations for further economicgrowth of certain areas.The Bank allocated a significant portion of its assets to placements into debt securities through discounting bills ofexchange issued by companies with good credit rating.The Bank also offers all types of guarantees, in Kuna and foreign currencies, for offers, active and paymentguarantees, letters of credit and other types of guarantee demanded by today's business climate.Credit rating, quality development programmes and professional management are the main conditions forfinancial crediting of clients.Further developing its business, we are offering other services to legal entities allowing faster, simpler and moreefficient business - MBCARD/MAESTRO cards, MasterCard Business cards, SMS services and Internet banking.Core Bank activities with companies will still be aimed at developing services which the Bank can offer to all legalentities, and at further development of business trust and partnership.In 2012, the business environment was hit with a sharp decrease of economic activities and liquidity of legalentities. Extreme care and plentiful resources are placed in finding the optimal solution for clients in overcomingthese tough business conditions.
LEGAL ENTITY TRANSACTIONS
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LEGAL ENTITY (COMPANY) DEPOSITS
31 DEC. 2012 % 31 DEC. 2011 %
(in thousands of Kuna)
40.725
20.893
61.618
36.5414.184
20.267626
66,09
33,91
100
59,306,79
32,891,02
42.372
47.154
89.526
35.3207.052
22.95624.198
47,33
52,67
100
39,457,88
25,6427,03
SIGHT DEPOSITS
TERM DEPOSITS
TOTAL
In HRKIn foreign currency
In HRKIn foreign currency
Payment transactions are a crucial segment of our offer. We are striving to be competitive in our tariffs and for speed andquality of payment transactions.
The Bank has wide authorizations as far as quality performance of foreign currency transactions is concerned; it has amembership in the SWIFT network programme, essential for retaining correspondence relations with domestic andforeign banks and high quality transactions.
The Bank has been a member of the National Clearing System (NKS) from the start. NKS membership allowsperformance of independent domestic payment transactions.The Bank uses its own software for payment transaction, which is the technical basis for high-quality domestic paymenttransaction operations .Following market trends and favouring business clients, the Bank also offers Internet banking, speeding up andsimplifying financial transactions regardless of time and place of business, saving time and money through morefavourable fees.Login and verification is done through the token for private entities and through USB PKI for legal entities.
Transactions can be made in any of the Bank's offices, regardless of the location in which the client opened his/her/itsaccount; to further make our clients' lives easier, transactions are also possible in any Financial Agency (FINA) outlet.
The Bank will continue to develop its payment transaction services in order to offer current and future users of suchservices a cost-effective, efficient, high-quality offer of products and services.
The primary function of the Bank's information system is to ensure to business users and Bank clients approach toinformation and services necessary for their everyday business. It ensures confidentiality, accessibility and integrity ofinformation, as well as continual development of the Bank's business.
The technological base of the Bank IS are servers for banking and non-banking applications. The server for bankingapplications if IBM Power6 520, while non-banking applications use two IBM x3650 servers with installed VMwareinfrastructure. External locations (financial centres, branches and branch offices) are connected through the virtualprivate network (VPN).The Bank also has a backup system, which includes a backup location with redundant hardware, software and data to beused in case of catastrophic events or some other emergency; the entire production system can be started during therecovery time, all in accordance with legal provisions.
Numerous activities concerning the upgrade of the IS of the Bank and expanding services according to the operationsplan were performed in 2012. 2 (two) ATMs were installed in branch offices in Pitomača and Sl.Brod, one part of thecomputer and communication equipment in financial centres/branches and the Bank seat was replaced, and mobileEFTPOS devices were introduced.
The project of increasing Internet banking security was completed. Authentication changes for Internet banking userswere made; private entities received tokens, and legal entities USB PKI devices with FINA certificates. Business usershave access to the B2G (Business to Goverment) service.
In the area of regulator reports, the Bank successfully fulfilled all legal and other regulatory obligations. CNB reportingproject support was also successfully introduced (statistical and credit standing PLA reports, payment transactionstatistics). Support was also introduced in accordance with the Salary Contribution Regulation. The IS was adjusted tonew formats, in accordance with the Payment Transactions Act.Support for bills of exchange, treasury notes, inter-bank loans and deposits was introduced as part of internalprogramming improvements. Also improved was support for estimation of credit rating of legal entities.
During to process of introducing new products or developing present ones, the Bank Management performs the analysisof its own technical, organizational and staff readiness, as well as planned profitability and market. These activities arebeing performed in accordance with the Project Management Regulations.
TRANSACTIONS
THE BANK'S INFORMATION SYSTEM AND IT
LIQUIDITY RISK
CREDIT RISK
CURRENCY RISK
Liquidity risk is the risk of the Bank's ability to fulfil all its obligations according to their maturity on time and withinarranged time frames, without causing any undue losses or jeopardising the Bank's capital. The Bank sets itsliquidity by constructing preconditions for long-term maintenance of liquidity in HRK and foreign currencies whichwould ensure the Bank unhindered and timely fulfilment of all its obligations, thereby ensuring permanent Bankliquidity and fulfilling preconditions for safe, stable and profitable business.In order to maintain the planned level of liquidity, the Bank must attempt to meet the following criteria: Regularmaintenance of the planned level of "daily liquid assets", maintenance of time-adjusted assets and liabilities, andattaining surplus of foreign currency receivables over foreign currency liabilities, in accordance with the Decisionon minimum necessary foreign currency receivables.
Ever more complex business conditions and high level of non-liquidity/insolvency both in the business sector andthe retail sector are a constant challenge before the Bank, with the goal being retention of the wanted level ofsolvency/liquidity.To that end, solvency/liquidity levels are being constantly monitored, and stress tests performed in order tooptimise the Bank’s solvency/liquidity.
Credit risk is the risk of an undesirable event taking place due to which the debtor cannot or does not wish to returnthe money placed to him or fulfil his financial obligation according to agreed upon dynamic or set conditions.The Bank manages credit risk through regular analysis of the ability of existing and potential borrowers to pay backtheir obligations (equity and interest) and to change credit limits as necessary. In addition, exposure to this risk isalso partially regulated through acquiring collateral and corporate/private guarantees.The Bank ensures control over crediting procedures - approval, monitoring and collection - through performanceof activities of detailed and thorough check of credit rating of clients.The Bank monitors exposure toward individual clients based on client classification, type of exposure andprovisioning of individual clients; it also controls the allocation of placements and off-balance potential items intorisk groups.
The bank evaluates credits/loans and other placements through the internal placement allocation system, basedon client regularity in making their payments, based on repeated inspection of client credit ability and based on thequality of insurance instruments.In accordance with Bank policies, which in turn are run in accordance with pertinent valid legal provisions, the Banksets aside reserves for non-identified grouped losses. The amount of so determined reserves may not be lower than0.85% - 1% of no-risk assets and 0.85%-1% non-risk potential liabilities and those taken over.Since credit risk is the risk that can have the most serious consequences for the Bank, we are continually improvingthe credit/loan process and are adding new staff to the Risk Department.
Currency risk is the risk emerging pursuant to changes in currency relations and the change in value of the domesticcurrency with respect to foreign currencies in which the Bank has positions.Currency risk stems from non-adjusted asset and liability items in the balance sheet and off-balance in currencieswhere more significant changes in currency rates may have an effect on the profit and loss account.Monitoring and measuring of the currency risk is performed on a monthly and daily basis using the followingmethods, i.e. approaches: monitoring the currency structure of assets and liabilities and the currency structure ofoff-balance items, daily monitoring of Bank's exposure to currency risk according to the Decision on limiting theexposure of banks to currency risk, the credit and deposit plan, analysis of currency rate trends. Management ofcurrency risk is performed through planning of the currency structure of the Bank's assets and liabilities andcontinued monitoring of the exchange rate of certain currencies and forecasting their trends and effects on theBank's business.
In order to minimise this type of risk, the Bank’s assets and liabilities are constantly optimised in order to neutralisethis type of risk as much as possible.
BUSINESS RISKS
INTEREST RISK
Interest risk is the risk arising from changes in active and passive interest rates, influencing profitability of businessand earnings, and thereby the Bank's capital. Interest risk originates from non-adjusted interest rates, in scope andmaturity of the parts of assets and liabilities sensitive to interest changes.The Bank uses the following methods for measuring the risk of change of interest rates: analysis of interest ratetrends on the market, analysis of interest margins, analysis of net interest income, analysis of the static gap model.
Risk tied to holding and trading securities; it is a consequence of possible decrease of the value of securities in theBank's portfolio. Therefore, management of this portfolio includes the need for constant monitoring of marketprices of certain securities and maintaining the portfolio structure which supports the optimal profit to risk ratio.Sectors investing in securities are the ones furnishing data for monitoring price risks.
PRICE RISK
BUSINESS RISKS
SHARES-RELATED INFORMATION
In 2012, the Bank purchased its own shares twice.- on 1 February it purchased 3.26% shares- on 6 November it purchased 3.64% shares- From before, the Bank had 0.86% shares
Therefore, the total of purchased own shares in capital stock is 7.77%.
The Chairwoman of the Management Board Angelina Horvat has a0.02% stake in the capital stock of the Bank.
BANK MANAGEMENT BOARD:
Chairwoman:Angelina Horvat
Board member:Marko Krajina
Board member:Marko Brnić
SLATINSKA BANKA d.d., SlatinaVladimira Nazora 2, Slatina
AUDITOR'S REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2012
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CONTENTSAUDITOR'S REPORTAND FINANCIALSTATEMENTSFOR THE YEAR ENDED31 DECEMBER 2012
RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
STATEMENT OF INCOME / STATEMENT OFCOMPREHENSIVE INCOME
BALANCE SHEET / STATEMENT OF FINANCIAL POSITION
STATEMENT OF CHANGES IN EQUITY
CASH FLOWS STATEMENT –INDIRECT METHOD
NOTES TO THE FINANCIAL STATEMENTS
APPENDIX - OTHER LEGAL AND REGULATORY REQUIREMENTS
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RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management Board of the Slatinska banka d.d., Vladimira Nazora 2, Slatina (hereinafter: ‘’theBank’’) is responsible for ensuring that the annual financial statements for the year 2012 areprepared in accordance with the Accounting Law (National gazette No 109/07) and theInternational Financial Reporting Standards (National gazette No 136/09, 8/10, 18/10, 27/10,65/10, 120/10, 58/11, 140/11, 15/12, 118/12) issued by the Committee for Financial ReportingStandards, nominated by Government of the Republic of Croatia, to give a true and fair viewof the financial position, the results of operations, the changes in equity and the cash flows ofthe Bank for that period.After making enquiries, the Board has a reasonable expectation that the Bank has adequateresources to continue in operational existence for the foreseeable future. Accordingly, theBoard has adopted the going concern basis in preparing the financial statements of the Bank.In preparing those financial statements, the responsibilities of the Board include ensuring that:• suitable accounting policies are selected and then applied consistently;• judgments and estimates are reasonable and prudent;• applicable financial reporting standards are followed, subject to any materialdepartures disclosed and explained in the financial statements; and• the financial statements are prepared on the going concern basis unless suchassumption is not appropriate.The Board is responsible for keeping proper accounting records, which disclose withreasonable accuracy at any time the financial position and the results of operations of theBank and their compliance with the Accounting Law (National gazette No 109/07) and theInternational Financial Reporting Standards (National gazette No 136/09, 8/10, 18/10, 27/10,65/10, 120/10, 58/11, 140/11, 15/12, 118/12) issued by the Committee for Financial ReportingStandards. The Board is also responsible for safeguarding the assets of the Bank and hencefor taking reasonable steps for the prevention and detection of fraud and other irregularities.
Signed on behalf of the Board:
Angelina Horvat,President of the Management Board
Marko Krajina,Member of the Management Board
Marko Brnić,Member of the Management Board
Slatinska banka d.d.Vladimira Nazora 233520 SlatinaThe Republic of Croatia
Slatina, 29 March 2013
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INDEPENDENT AUDITOR’S REPORT
To the shareholders of the Slatinska banka d.d., Slatina
Responsibility of the Bank’s Management
Responsibility of Auditor
1. We have audited the accompanying annual financial statements of the Slatinska bankad.d., Vladimira Nazora 2, Slatina (hereinafter: ‘’the Bank’’) for the year ended 31 December2012, which comprise of the Balance Sheet/Statement of Financial Position as of 31 December2012; the Statement of Income/Statement of Comprehensive Income; the Statement ofChanges in Equity; the Cash Flows Statement for the year then ended; and the accompanyingNotes to the financial statements which concisely set out the principal accounting policies andother disclosures.
2. The preparation and a fair presentation of the enclosed financial statements accordingto the International Financial Reporting Standards effective in the Republic of Croatia and alsothose internal controls which are determined by the Bank's management as necessary toenable preparation of the financial statements free from material misstatements whether due tofraud or error are the responsibility of the Bank's management.
3. Our responsibility is to express an opinion on the enclosed financial statements basedon the audit performed. We conducted our audit in accordance with International Standards onAuditing. Those standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance that the financial statements are free frommaterial misstatements.
An audit includes performing of procedures to obtain audit evidence supporting the amountsand disclosures in the financial statements. The procedures selected depend on the auditor’sjudgment, including the assessment of the risks of material misstatements in the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal controls relevant to the entity’s preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of theentity’s internal controls. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of accounting estimates made by Bank’s management,as well as evaluating the overall presentation of the financial statements.
We believe that auditing proof and evidence being collected by us are sufficient and suitable asthe basis for our opinion.
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Member of theManagement Board
Authorized auditor
Opinion4. In our opinion, the enclosed financial statements, in all material respects, truly andfairly present the financial position of the Slatinska banka d.d., Slatina as of 31 December2012 and the results of operations and the cash flows of the Bank for the year 2012 inaccordance with the Accounting Law and International Financial Reporting Standards effectivein the Republic of Croatia.
Emphasis of matter
5. Without qualifying our opinion stated in paragraph 4 above, we draw your attention tothe Note V to the financial statements where it is described contigent liability by court disputein progress.
Other legal and regulatory obligations
6. Based on the Decision on the form and content of annual financial statements ofbanks (Official Gazette 62/08, hereinafter ''the Decision''), the Management Board of the Bankprepared forms which include statement of financial position as of 31 December 2012,statement of comprehensive income, statement of changes in equity and cash flows statementfor the year then ended, as well as the notes on reconciliations with basic financialstatements.These Forms and accompanying Reconciliations are the responsibility of theBank’s Management Board and do not represent an integral part of financial statements, butare prescribed by the Decision. Financial information in the Forms stated on pages 44 to 53are correctly derived from the basic financial statements of the Bank which are prepared inaccordance with the International Financial Reporting Standards and shown on pages 5 to 43.
In Zagreb, 15 April 2013
POSITION Note
(in thousands of Kuna)
20112012
84.459
(47.812)
13.011
(2.934)
3.189
5.654
(43.642)
(5.522)
3.022
36.647
10.077
8.843
(49.164)
6.403
(1.406)
4.997
5,44
8.019
83.940
(46.567)
13.460
(3.356)
3.839
909
(41.196)
(6.452)
(1.257)
37.373
10.104
4.748
(47.648)
4.577
(1.250)
3.327
3,62
2.070
4
5
6
7
8
9
10
13
14
33
Interest income
Interest expense
Income from fees and commissions
Expenses from fees and provisions
Net foreign exchange gains
Other income
Other expenses
Impairments and provisions
Unrealized profit/loss from valuationof financial assets available for sale
Net interest income
Net income from fees and provisions
Total other income
Total other expenses
Profit before tax
Corporate income tax
Profit for the year
Earnings per share
TOTAL COMPREHENSIVE PROFIT OF THE CURRENT YEAR
Supplementary notes under number I to VI form an integral part of these financial statements.
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STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
At 31 Dec 2011At 31 Dec 2012
159.495
42.065
174.422
83.098
776.819
5.679
27.315
6.273
13.741
19.993
2.617
196.482
859.810
159.030
46.088
2.936
91.897
(6.592)
1.799
149
14.357
68.687
4.997
133.357
1.442.257
1.266.963
175.294
1.442.257
125.816
118.269
129.085
143.365
87.582
662.473
5.759
27.173
4.649
8.354
18.676
2.596
202.713
848.538
56.158
45.115
2.612
91.897
(398)
(1.223)
149
14.357
65.360
3.327
1.331.201
1.157.732
173.469
1.331.201
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
ASSETS
Total assets
LIABILITIES
CAPITAL
Total capital
Cash assets
Receivables from Croatian National Bank
Placements with banks
Financial assets available for sale
Financial assets held to maturity
Loans and prepayments to customers
Investment in Affiliate
Property, plant and equipment
Intangible assets
Foreclosed assets
Other assets
Due to banks
Demand deposits
Term deposits
Liabilities for received loans
Other liabilities
Provisions
Total liabilities
Subscribed capital
Own shares
Revaluation resesrves
Capital gains
Reserves
Retained earnings
Profit of the current year
TOTAL LIABILITIES AND CAPITAL
Supplementary notes under number I to VI form an integral part of these financial statements.
18
(in thousands of Kuna)
POSITION Note
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
STA
TEM
EN
T O
F I
NC
OM
E /
STA
TEM
EN
T O
F C
OM
PREH
EN
SIV
E I
NC
OM
EFor
the y
ea
r en
ded
31
Dece
mb
er
20
12
Supple
menta
ry n
ote
s under
num
ber
I to
VI fo
rm a
n inte
gra
l part o
f th
ese
fin
anci
al st
ate
ments
.
Shar
eca
pita
lO
wn
shar
es
Unr
ealiz
edpr
ofit
/ fa
irva
lue
Cap
ital
gain
s
RESE
RVES
Rese
rves
for o
wn
shar
esLe
gal
rese
rves
Oth
erre
serv
esRe
tain
edea
rnin
gs
Prof
it fo
rth
e cu
rren
tye
ar
(in th
ousa
nds
of K
una)
0 0 0 0
91
.89
7
91
.89
7
(39
8)
(6.5
92
)0
(6.1
94) 0 0
0 0
3.02
2 0
(1.2
23
)
1.7
99
0 0 0 0
14
9
14
9
4.7
29
4.7
290 0 0 0
0 0 0 0
6.6
00
6.6
00
3.0
28
3.0
280 0 0 0
65
.36
0
68
.68
7
3.32
7 0 0 0
3.3
27
4.9
97
(3.3
27) 0 0
4.99
7
173.
469 0
(6.1
94)
3.02
2
4.99
7
175.
294
Bala
nce
at
31 D
ec. 2
011
Allo
catio
n of
pro
fit
for
the
2011
Purc
hase
of o
wn
shar
es
Unr
ealiz
ed p
rofit
Prof
it fo
r th
e cu
rren
t
peri
od
Bala
nce
at 3
1 D
ec. 2
012
Tota
l
1919
NET CASH FLOW FROM OPERATING ACTIVITIESProfit before taxAdjustment to net cash assetsfrom operating activities
CASH FLOW FROM INVESTING ACTIVITIES
Net cash flow from investing activities
CASH FLOW FROM FINANCIAL ACTIVITIES
Net cash flow from financial activities
Net change in cash and cash equivalentsCash and cash equivalents at the beginning of the yearCash and cash equivalents at the end of the year
Depreciation
Loan impairments
Impairments of other assets
Provisions for court disputes
Imperments of assets held-to-maturity
Other impairments and provisions (net)
Changes on assets and liabilities from operating activities
Increase in receivables from CNB
Decrease / increase in placements with banks
Increase in loans and prepayments to customers
Increase in other assets
Increase in due to banks
Decrease in demand deposits
Increase in term deposits
Increase/decrease in other liabilities
Corporate income tax
Net cash flow from operating activities
Decrease/increase in available-for-sale financial assets
Increase in financial assets held to maturity
Purchase of property, plant, equipment and intangible assets
Increase in foreclosed assets
Increase in loan liabilities
Other changes in equity (net)
Purchase of own shares
20112012
Supplementary notes under number I to VI form an integral part of these financial statements.
3.937
5.074
573
185
1.128
139
(41.226)
418
(119.420)
(1.891)
21
(6.231)
11.272
973
(1.406)
4.825
(3.242)
(5.703)
(5.388)
102.872
3.022
(6.194)
6.403
(140.048)
(9.508)
99.700
(49.856)
385.261
335.405
3.777
2.932
745
2.705
33
(33.817)
(152)
(28.881)
(5.084)
111
(7.794)
98.838
(2.119)
(1.250)
(25.421)
(12.968)
(5.620)
(3.294)
8.665
999
0
4.577
34.588
(47.303)
9.664
(3.051)
388.312
385.261
20
(in thousands of Kuna)
POSITION
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
I GENERAL
II BASIS FOR PREPARATION OF THE FINANCIAL STATEMENTS
1.1. Legal framework and activities
1.2. Company Bodies
2.1. Statement of adjustment and basis of presentation
SLATINSKA BANKA d.d. SLATINA is registered at the Commercial Court in Bjelovar. The Bank’sheadquarter is in Slatina, Vladimira Nazora 2.
The Bank is registered for the following services: domestic payment transaction in foreign currencies,cash services, all types of deposits, all types of loans, opening of documented letters of credit, issuingguarantees and bank warranties, bills of exchange and check activities, borrowings, purchase on own accountor on behalf of its clients, security activities on own account or on behalf of its clients; issuing and managingmeans of payment, financial leases and factoring, providing information on the credit worthiness of its clientsat their request, foreign credit activities and payment transactions, domestic payment transactions,representation services in the sale of insurance policies and other financial services.
The management Bodies of the Bank are Management Board, Supervisory Board and the Assembly.
Management Board:1. Angelina Horvat – President of the Management Board2. Elvis Mališ – Member of the Management Board till 18 March 20133. Marko Krajina – Member of the Management Board4. Marko Brnić – Member of the Management
Supervisory Board members are:1. Ružica Vađić - President of the Supervisory Board2. Tomislav Rosandić - Vice President of the Supervisory Board3. Hrvoje Markovinović - Member of the Supervisory Board4. Blaženka Eror Matić – Member of the Supervisory Board5. Denis Smolar – Member of the Supervisory Board
Financial statements of the Bank are prepared in accordance with the International Financial ReportingStandards (‘’IFRS’’) (National gazette No 136/09, 8/10, 18/10, 27/10, 65/10, 120/10, 58/11, 140/11,15/12, 118/12) issued by the Committee for Financial Reporting Standards nominated by Government of theRepublic of Croatia, and in accordance with the accordance with statutory accounting requirements for banksin the Republic of Croatia. Banking operations in the Republic of Croatia are subject to the Credit institutions’Act, in accordance with which financial reporting is regulated by the Croatian National Bank (“the CNB”).
21
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
2.2. Basis for preparation
2.3. Key estimates and uncertainty of estimates
2.4. Reporting currency
3.1. Interest income and expenses
3.2. Fee and commission income and expenses
Financial statements have been prepared by the application of basic accounting presumption of thebusiness event inception upon which the effects of operations are recognized when arisen and are shown inthe financial statements for the period to which they relate and with the basic accounting assumption thatgoing concern concept is applied.
Certain estimates are used during preparation of the financial statements which have inflow to thestatement of property and liabilities of the Bank, income and expenses of the Bank and the disclosure ofpotential liabilities of the Bank.Future events and their inflows could not be predicted with certainty and, following to this, the real results maydiffer from the estimated. Estimates utilized during preparation of the financial statements are subject tochanges by the occurrence of new events, by gathering of additional experience, obtaining of additionalinformation and comprehensions and by a change of environment in which the Bank operates.Key estimates used by the application of accounting policies during preparation of the financial statementsrelate to depreciation count of long-term intangible and tangible property, value decrease of property, valueprovision of receivables and provisions and the disclosure of potential liabilities.
The financial statements of the Bank are prepared in Croatian kuna as a measuring and reportingcurrency of the Bank.
At 31 December 2012 the official rate of Croatian kuna was 7.545624 HRK for 1 EUR (2011: it was7.530420 HRK) and 5.726794 HRK for 1 USD (2011: it was 5.819940 HRK).
Summary of accounting policies applied for preparation of the financial statements is set below.Policies are consistently applied to all the periods presented, unless otherwise indicated.
Interest income and expenses are recognized in the income statement for all interest bearinginstruments on an accrual basis using the effective yield method and based on real purchase price. Interestincome includes coupons earned on fixed income investment and trading securities for sale and accrueddiscount and premium on treasury bills and other discounted instruments.When the loan repayment becomes doubtful, principal amount is decreased to their recoverable amount, andinterest income is thereafter recognised based on the interest rate used for discounting the future cash flow.
Fees and commissions income mainly comprise fees and commissions from domestic andinternational payment transactions, guarantees, letters of credit, cards and assets management, and arerecognized in the income statement when the corresponding service is provided, except for the cases whenthey are included in the calculation of effective interest rates.
III SUMMARY OF ACCOUNTING POLICIES
Fees and commissions expenses comprise fees paid to the authorized banks for foreign paymenttransactions and for the services of the Financial Agency (“FINA”) for domestic paymenttransactions.
22
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
3.3. Net gains and losses from financial instruments at fair value through profit or loss andthe result of foreign exchange trading and exchange rate differences arising on translationof monetary assets and liabilities
This category include earnings from foreign currency trading, realized and unrealized gains and lossesfrom debt and equity securities held for trading, other financial instruments carried at fair value through profit orloss and derivative financial instruments. Net gains and losses from foreign exchange differences arising ontranslation of monetary assets and liabilities denominated in foreign currencies, are also included in this category.
Transactions in foreign currencies are translated into HRK (Croatian Kuna) at the exchange rate ruling atthe date of the transaction. Croatian Kuna is the official currency of the Bank and the financial statements arepresented in that currency.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translatedto HRK at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation arerecognized in the income statement.
Non-monetary items denominated in foreign currencies measured at fair value are translated to HRKusing the exchange rates at the date when the fair value is determined. Non-monetary items that are measured interms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initialtransactions.Gains and losses arising on translation and foreign currency trading are recognized in the income statement forthe year concerned.
Income tax expense represents the cumulative amount of the current tax liability and deferred tax.
Current tax liability is based on taxable profit for the year. Taxable profit differs from profit as reported inthe income statement because it excludes items of income or expense that are taxable or deductible in other yearsand it further excludes items that are never taxable or deductible. The Bank’s current tax liability is calculatedusing tax rates that have been enacted or substantively enacted by the balance sheet date.
Management periodically evaluates positions taken in the tax returns with respect to situations in whichapplicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax is provided using the liability method and shows tax effects on all significant temporarydifferences at the reporting date between the tax bases of assets and liabilities and their carrying amounts forfinancial reporting purposes.
Defined benefit scheme surpluses and deficits are measured at:• the fair value of plan assets at the reporting date; less• current net value of mandatory benefits; and• adjustments for unrecognised past service costs.
The Bank does not have other retirement arrangements separate from the Croatian State pension system.
3.4. Foreign currency translation
3.5. Taxation
3.6. Retirement benefits: Defined benefit schemes
a) Current tax
b) Deferred tax
Defined contribution schemes
Defined benefit schemes
Contributions for the Bank's retirement plan are debited to the income statement in the year to which they relate.
23
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
3.7. Financial instruments
Bank's financial instruments are classified into portfolios based on the Bank's intention at the time ofthe acquisition of a financial instrument and in accordance with the Bank's investment strategy. Financial assetsand financial liabilities are classified into the following categories: "at fair value through profit or loss", "held tomaturity", "available for sale", "loans and receivables" and "other financial liabilities".
All financial assets and liabilities are recognized, and derecognised on the trade date where purchaseof a financial asset or financial liability is defined by the contractual delivery date within the timeframeestablished by conventions on the subject market.
At initial recognition of financial assets or liabilities, the Bank measures assets or liabilities at cost,including transaction costs (excluding financial assets at fair value through profit or loss) which are directlyattributable to the acquisition or issue of financial asset or financial liability.
This category has two subcategories: financial instruments held for trading (including derivatives) andthose which the Bank initially deployed into this category. A financial instrument is allocated to this category ifacquired or incurred for sale or repurchase in the short term, for the purpose of short-term profit or deploymentby the Management in this category.After initial recognition, financial assets at fair value through profit or loss are carried at fair value which isequal to the price quoted on recognized stock exchanges or is determined by some acceptable evaluationmodels. The Bank states unrealized gains and losses within net profit / (loss) from financial operations.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that arenot quoted in an active market. Loans and receivables arises when the Bank provides cash to the clients withno intention of trading the receivables and include loans and receivables from banks, loans and receivablesfrom clients, alternate bonds and obligatory reserve at the Croatian National Bank.
Loans and receivables are stated net of allowances for impairment losses.
Allowances for impairment losses are established if there is objective evidence that the Bank will notbe able to collect all amounts due. The amount of the allowance for impairment losses is the differencebetween the carrying amount and the recoverable amount, which represent the present value of expected cashflows, including amounts recoverable from guarantees and collaterals. Allowances for impairment losses byspecific loans are assessed with reference to the performance of the borrower, taking into account the value ofany collateral or third party guarantees.
Due outstanding loans are written-off in the amount of related impairment loss, and all subsequentlycollected amounts are credited to the income statement within other income.
The Bank is charging interest to the debtors for delays in payment, which is accrued based on the cashreceipts and stated within interest income.
Non-derivative financial assets with fixed or determinable payments and fixed maturities are classifiedas held-to maturity when the Bank has the positive intention and ability to hold it to maturity. Mentionedcategory includes certain debt securities.
All financial instruments held to maturity are accounted at amortized cost less impairment provisions.Interest earned on the basis of these financial instruments is stated as interest income.
The Bank regularly checks whether there is objective evidence that would indicate an impaired valueof assets held to maturity. When it is determined the impairment of assets, the Bank recognizes provisions inthe income statement. Impairment loss is cancelled in the next periods when an increase in the recoverableamount of the investment can be related objectively to an event occurring after the impairment recognition.
a) Financial assets and financial liabilities at fair value through profit or loss
b) Loans and receivables
c) Held-to-maturity investments
24
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
This category comprises non-derivative financial assets which are designated as available for sale or isnot designated in other category. Financial assets designated as available for sale are intended to be held for anindefinite period of time, but may be sold in response to needs for liquidity or changes in interest rates, foreignexchange rates, or equity prices. Available-for-sale financial assets include certain debt and equity securities.
After initial measurement, available-for-sale financial investments are subsequently measured at fairvalue based on quoted prices or amounts derived from cash flows. If the market value cannot be reliablydetermined, the Bank establishes fair value by using the techniques of evaluation. These include the use of pricesachieved in recent transactions between informed, willing parties, reference to other substantially similarinstruments, discount cash flow analysis and price option models, thereby making maximum use of informationfrom the market.
Unrealized gains and losses arising from changes in fair value of available-for-sale assets arerecognized directly in equity until the sale or impairment of financial assets, and then the realized gains or lossesare reported in net profit or loss for the period.
e) Other financial liabilities
Other financial liabilities comprise all financial liabilities not held for trading or not designated at fairvalue through profit or loss.
Associated companies are companies where the Company has control over bringing and implementingfinancial and business policies (portion over 50%). Investments into associated companies are stated at costmethod, decreased by carrying value of these asset-investment to its recoverable amount.The Bank is also preparing consolidated financial statements with the subsidiary in which it has the entire shareportion and control.
The fair value of financial instruments that are traded in active markets at each reporting date isdetermined by reference to quoted market prices or dealer price quotations without any deduction for transactioncosts.
For financial instruments not traded in an active market, the fair value is determined using appropriatevaluation techniques. Such techniques may include using recent arm’s length market transactions; reference tothe current fair value of another instrument that is substantially the same; discounted cash flow analysis or othervaluation models.
Plant and equipment are stated at cost less accumulated depreciation and / or accumulated impairmentlosses, and make tangible assets if their useful life is longer than one year, and single value is greater than HRK3,500 at the acquisition date. Cost includes purchase price, the cost of spare parts, plant and equipment,borrowing costs for long-term construction projects, and other dependent costs and estimated future costs ofdismantling, if recognition conditions are met, while the liability is recorded as commission.Land and property are recorded at cost less accumulated depreciation of property and asset impairment lossesrecognized after the date of revaluation, on the basis of periodic evaluation by professional appraisers.
Depreciation is calculated so to write-off the cost of the assets, except land and investments in progress,over their estimated useful lives using the straight-line method at the following rates:
d) Financial assets available for sale
3.8. Investments in Associates
3.9. Fair value of financial instruments
3.10. Property, plant and equipment
25
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
Depreciation is calculated separately by each item of assets till it is fully depreciated. An item ofproperty, plant and equipment and any significant part initially recognized is derecognized upon disposal orwhen no future economic benefits are expected from its use or disposal.
Any gains or losses from disposal of certain asset are determined as difference between sale revenueand carrying amount of that asset and are recognized as expense or income in the Income statement. Theassets’ residual values, useful lives and methods of depreciation are reviewed at each financial year end, andadjusted prospectively, if appropriate.
3.11. Intangible assets
3.12. Use of estimates
Intangible assets include IT programmes and leasehold investments initially measured at cost anddepreciated on a straight line basis during the estimated useful life.
Intangible assets acquired separately are measured on initial recognition at cost. The cost ofintangible assets acquired in a business combination is its fair value as at the date of acquisition.
Following initial recognition, intangible assets are carried at cost less any accumulated amortisationand any accumulated impairment losses. Internally generated intangible assets, excluding capitaliseddevelopment costs, are not capitalised and expenditure is reflected in the income statement in the year inwhich the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over the useful economic life and assessed forimpairment whenever there is an indication that the intangible asset may be impaired. The amortisation periodand the amortisation method for an intangible asset with a finite useful life are reviewed at least at eachfinancial year end. Changes in the expected useful life or the expected pattern of consumption of futureeconomic benefits embodied in the asset is accounted for by changing the amortisation period or method, asappropriate, and are treated as changes in accounting estimates. For the purpose of preparation of thesefinancial statements the Bank calculated depreciation of intangible assets using depreciation rate of 20%.
The amortisation expense on intangible assets with finite lives is recognised in the income statement inthe expense category consistent with the function of the intangible asset. Intangible assets with indefinite usefullives are not amortised, but are tested for impairment annually, either individually or at the cash generatingunit level.
The preparation of the financial statements in accordance with the IFRS requires that the Bank’sManagement Board make estimates and assumptions that affect the amounts reported in financial statementsand accompanying notes. The estimates have been made based on historical experience and various otherfactors that are believed to be realistic in the circumstances and information available at the date ofpreparation of financial statements, the results of which form the basis for judgments about carrying values ofassets and liabilities that are not easily ascertainable from other sources. Actual results may differ from theseestimates.
The estimates and underlying assumptions are reviewed on a regular basis. Revisions to accountingestimates are recognized in the period in which they are incurred if affects only that period or the period inwhich they are incurred and future periods if affects current and future periods.
DESCRIPTION
BuildingsComputer equipmentFurniturePersonal vehiclesSoftwareOther equipmentIntangible assets
2012.%
2011.%
2,5025204020
10 - 2520
2,5025204020
10 - 2520
26
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
3.13. Contingent liabilities and commitments
3.14. Cash flow statement
3.15. Operating segments
3.16. Regulatory requirements
3.17. Events after the reporting period
3.18. Comparatives
In the ordinary course of business, the Bank was by issuing guarantees, credentials, granting loans that werenot fully utilized and other contingencies stated contingent liabilities and commitments in its off-balancerecords. These financial instruments are stated in the Bank’s balance sheet when and if the Bank settlematured liability.Provisions for possible losses by contingent liabilities and commitments are made at a level Bank’smanagement believe is adequate to absorb probable future losses. Management determines the adequacy ofthe provisions based upon reviews of individual items, current economic conditions, the risk characteristics ofthe various categories of transactions and other pertinent factors.
For the cash flow reporting purposes, cash and cash equivalents are defined as cash, placements with banksand treasury bills of the Ministry of Finance with remaining maturity up to 90 days.
Operating segments are reported in a manner consistent with the internal reporting provided to thechief operating decision-maker. The chief operating decision maker has been identified as the Bank’sManagement Board that reaches strategic decisions.
The Bank has identified four primary segments: Retail, Corporate, Banks and Other. The primarysegmental information is based on the internal reporting structure of business segments. Where it was possiblethe positions of the balance sheet and income statement were shown by mentioned segments.
The Bank is subject to the regulatory requirements of the Croatian National Bank. These regulationsinclude limits and other restrictions pertaining to minimum capital adequacy requirements, classification ofloans and off-balance sheet commitments and provisioning to cover credit risk, liquidity, interest risk and riskrelated to foreign currency position.
Events after the balance sheet date are those favourable and unfavourable events that have occurred betweenthe date of the statement of the financial position and the date on which financial statements are approved forissuance. The Company adjusts amounts recognized in its financial statements for events occurred after thebalance sheet date which requires adjustment.
Where necessary, comparative figures have been reclassified to achieve consistency in disclosure with currentfinancial year amounts and other disclosures.
27
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
28
33.397
41.628
627
8.807
84.459
1.136
35.954
3.207
7.515
47.812
3.604
8.320
1.087
13.011
1.958
253
723
2.934
27.272
46.969
1.799
7.900
83.940
1.842
35.332
1.514
7.879
46.567
3.343
9.275
842
13.460
2.379
267
710
3.356
DESCRIPTION
DESCRIPTION
DESCRIPTION
DESCRIPTION
4. INTEREST INCOME
5. INTEREST EXPENSES
6. FEE AND COMMISSION INCOME
7. FEE AND COMMISSION EXPENSES
(in thousands of Kuna)
(u 000 kuna)
(in thousands of Kuna)
(in thousands of Kuna)
NOTES TO THE STATEMENT OF INCOME / STATEMENTOF COMPREHENSIVE INCOME
2011
2011
2011
2011
2012
2012
2012
2012
Corporate
Individuals
Banks
Other
Total
Corporate
Individuals
Banks
Other
Total
Corporate
Individuals
Other
Total fee and commission income
FINA services
Foreign banks
Domestic customers
Total
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
29
21.594
3.937
18.111
43.642
11.885
6.117
2.350
1.242
21.594
20.784
3.777
16.635
41.196
11.586
6.156
2.057
985
20.784
DESCRIPTION
DESCRIPTION
DESCRIPTION
DESCRIPTION
8. NET FOREIGN EXCHANGE GAINS
9. OTHER INCOME
10. OTHER EXPENSES
11. EMPLOYEES' EXPENSE
(in thousands of Kuna)
(in thousands of Kuna)
2011
2011
2012
2012
Employees’ expenses (Note 11)
Depreciation (Notes 22 and 23)
Other operating expenses (Note 12)
Total
Net salaries
Contributions from and on salaries
Taxes and surtaxes from salaries
Other employees' expenses
Total
(in thousands of Kuna)
(in thousands of Kuna)
20112012
20112012
318
1.051
3.873
412
5.654
507
43
44
360
909
Collected court and similar expenses from legal claims
Income from sale of long-term tangible assets
Income from activities related
to assets available for sale
Other
Total
Currency differences on translations
Currency differences from currency clause
Currency differences on foreign currency trading
Total
(1.204)
1.060
3.333
3.189
(9.442)
9.702
3.579
3.839
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
30
6.403
7.386
1.477
(71)
1.406
1.291
(308)
20%
4.577
6.249
1.250
0
1.250
3.088
(1.416)
20%
DESCRIPTION
DESCRIPTION
DESCRIPTION
12. OTHER OPERATING EXPENSES
13. IMPAIRMENT AND PROVISION COSTS
14. CORPORATE INCOME TAX (in thousands of Kuna)
20112012
Accounting profit
Items which increase tax base
Items which decrease tax base
Corporate income tax base
Corporate income tax rate
Corporate income tax liability
Cost / (income) of deferred tax
Tax loss
(in thousands of Kuna)
20112012
4.504
573
570
80
1.128
(1.657)
139
185
5.522
2.239
745
693
164
0
(84)
35
2.705
6.497
Impairment of loans and prepayments to customers (Note 20)
Impairment of other assets (Note 25)
Special reserves for identified cumulative losses(Note 15, 16, 17, 19, 20)
Impairment of investments in subsidiaries (Note 21)
Impairment of financial assets held-to-maturity(Note 19)
Collected written-off receivables
Provisions for contingent liabilities (Note 31)
Provisions for court disputes (Note 31)
Total
(in thousands of Kuna)
20112012
Material and similar expenses
Services expenses
Representation, advertising and propaganda expense
Reimbursements to the Supervisory Board
Other
Total
2.142
11.933
1.257
566
2.213
18.111
2.263
10.888
1.162
572
1.750
16.635
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
31
DESCRIPTION
DESCRIPTION
DESCRIPTION
15. CASH
16. RECEIVABLES FROM THE CROATIAN NATIONAL BANK
17. PLACEMENTS WITH BANKS
(in thousands of Kuna)
(in thousands of Kuna)
At 31 Dec 2011
At 31 Dec 2011
At 31 Dec 2012
At 31 Dec 2012
86.593
14.269
60.000
(1.367)
159.495
5.000
5.015
31.062
1.349
(361)
42.065
88.177
15.106
16.000
(1.014)
118.269
10.664
5.194
52.748
61.586
(1.107)
129.085
Obligatory reserve
- HRK
- foreign currency
Other deposits with CNB
Impairment
Total
Short-term loans to domestic banks
Long-term loans to domestic banks
Short-term deposits at foreign banks
Short-term deposits at domestic banks
Impairment
Total
(in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
Gyro account
Cash in hand:
- HRK
- foreign currency
Cash at foreign account at foreign banks
Cash at foreign account at domestic banks
Other cash
Impairment
Total
25.755
19.120
8.218
69.285
11.813
74
(908)
133.357
40.648
12.060
7.457
62.543
3.926
92
(910)
125.816
NOTES TO THE BALANCE SHEET / STATEMENT OF FINANCIAL POSITION
Receivables from the Croatian National Bank represent obligatory reserves in HRK and foreigncurrency, calculated by the rate of 13,5% (2011: 14%) on HRK and foreign currency deposits and on foreigncurrency loans. From that amount the bank holds 70% of HRK obligatory reserves and 60% of foreigncurrency obligatory reserves with Croatian National Bank.
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
32
DESCRIPTION
DESCRIPTION
DESCRIPTION
Movements on impairments are shown as follows:
18. FINANCIAL ASSETS AVAILABLE FOR SALE
19. FINANCIAL ASSETS HELD TO MATURITY
(in thousands of Kuna)
(in thousands of Kuna)
At 31 Dec 2011
At 31 Dec 2011
At 31 Dec 2012
At 31 Dec 2012
431
19.801
0
0
14.308
53.664
86.218
174.422
57.560
2.201
646
2.659
21.954
(1.922)
83.098
431
7.118
2.572
28.166
997
45.894
58.187
143.365
77.582
1.958
476
8.435
0
(869)
87.582
Investments in equity securities
Investments in investing funds
Investments in debt securities
- state units’ bonds in HRK
- state units’ bonds with currency clause
- trade companies’ bonds
- treasury bills of the Ministry of Finance in HRK
- treasury bills of the Ministry of Finance with currency clause
Total
Trade companies bills
State units’ bills
Sole traders’ bills
Factoring – State units
Treasury bills of the Ministry of Finance
Impairment
Total
(in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
Balance at 1 January
Net impairment (Note 13)
Balance at 31 December
1.107
(746)
361
1.545
(438)
1.107
DESCRIPTION
Movements on impairment are shown as follows: (in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
Balance at 1 January
Net impairment (Note 13)
Balance at 31 December
869
1.053
1.922
809
60
869
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
33
DESCRIPTION
20. LOANS AND PREPAYMENTS TO CUSTOMERS (in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
387.765
406.470
28.711
(46.127)
776.819
278.666
407.351
17.342
(40.886)
662.473
Companies
Individuals and sole traders
Other
Impairments
Total
DESCRIPTION
DESCRIPTION
Risk concentration by economic sector in portfolioof loans to customers is shown as follows:
Movements on impairment and provisionsfor possible losses are shown as follows:
(in thousands of Kuna)
(in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
Production
Trade
Tourism
Agriculture
Construction
Services
Individuals
Others
Total
Impairment and provisions for loan losses
Total
116.231
115.355
12.358
104.933
30.115
8.609
366.193
69.152
(46.127)
822.946
776.819
57.289
90.821
5.300
67.644
32.770
5.333
380.378
63.824
(40.886)
703.359
662.473
38.609
2.571
68
(362)
40.886
5.355
332
0
0
5.687
33.254
2.239
68
(362)
35.199
Balance at 1 January
Net impairmentand provisions(Note 13)
Write-off and otherForeign currency differences
Balance at 31 December
40.886
5.516
(17)
(258)
46.127
5.687
1.012
0
0
6.699
35.199
4.504
(17)
(258)
39.428
2012
Impairment
Specialreserves foridentified
cumulativelosses Total
2011
Impairment
Specialreserves foridentified
cumulativelosses Total
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
34
DESCRIPTION
DESCRIPTION
21. INVESTMENTS IN SUBSIDIARY
Movements on impairments are shown as follows:
(in thousands of Kuna)
(in thousands of Kuna)
At 31 Dec 2011
At 31 Dec 2011
At 31 Dec 2012
At 31 Dec 2012
9.500
(3.821)
5.679
3.741
3.821
80
9.500
(3.741)
5.759
3.577
3.741
164
Turbina d.o.o., Slatina
Impairment
Balance at 31 December
Balance at 1 January
Balance at 31 December
Net impairment (Note 13)
According to the Bank's policies and current legislative, the Bank is required to establish reserves foridentified cumulative losses of placements A, determined in loan portfolio based on previous experience. Theamount of these reserves the Bank keeps at the level 0.85 – 1.00% of non-risk assets and 0.85 – 1.00% ofnon-risk contingent commitments as at 31 December 2012, and according to regulations those can rangefrom 0.85% - 1.20% (At 31 December 2011: 0.85%-1.20% of non-risk assets and 0.85%-1.20% of non-riskcontingent commitments).
The Bank has 100% share portion in the mentioned company. Investment in subsidiary is stated atcost, decreased by carrying value of this asset – investment to its recoverable amount.
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
35
DESCRIPTION
Movements on property, plant andequipment are shown as follows: (in thousands of Kuna)
Purchase value
Balance at 31 Dec. 2011
Balance at 31 Dec. 2012
Impairment
Balance at 31 Dec. 2011
Balance at 31 Dec. 2012
Net carryingvalue as at31 Dec. 2011
Net carrying valueas at31 Dec. 2012
Direct additions
Transfer from assetsunder construction
Disposals and write-offs
Depreciation for 2012
Disposals and write-offs
111
0
0
0
0
1.145
1.256
0
0
1.145
1.256
Land Buildings Equipment
Furniture andtransportvehicles
Tangibleassets underconstruction
Totalproperty,plant andequipment
22. PROPERTY, PLANT AND EQUIPMENT
624
173
0
839
0
33.106
33.903
11.325
12.164
21.781
21.739
0
1.161
(547)
1.541
(547)
17.368
17.982
14.066
15.060
3.302
2.922
0
621
(337)
358
(337)
7.805
8.089
7.229
7.250
576
839
2.145
(1.955)
0
0
0
369
559
0
0
369
559
59.793
2.880
0
(884)
61.789
32.620
2.738
(884)
34.474
27.173
27.315
The Bank's building in Slatina was pledged as a guarantee for received loan from Zveza Bank,Klagenfurt, Austria in the amount of EUR 1,450 thousand as at 31 December 2012 (31 December 2011: EUR2,000 thousand), Note 29.
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
36
DESCRIPTION
(in thousands of Kuna)
Intangible assetsin use
Intangible assetsunder construction
Totalintangible
assets
23. INTANGIBLE ASSETS
51
3.190
1.199
9.894
13.135
6.728
7.927
3.166
5.208
2.772
(3.190)
0
1.483
1.065
0
0
1.483
1.065
Purchase value
Balance at 31 December 2011
Balance at 31 December 2012
Impairment
Balance at 31 December 2011
Balance at 31 December 2012
Net carrying valueas at 31 Dec 2011
Net carrying valueas at 31 Dec 2012
Direct additions
Transfer from assets under construction
Depreciation for 2012
11.377
2.823
0
14.200
6.728
1.199
7.927
4.649
6.273
DESCRIPTION
24. FORECLOSED ASSETS (in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
1.733
2.949
113
1.727
7.219
0
13.741
1.612
1.658
0
655
4.427
2
8.354
Land – foreclosed over 2 years
Buildings - foreclosed over 2 years
Other asset - foreclosed over 2 years
Land
Initially recognized value – Other buildings
Initially recognized value – Other tangible and intangible assets
Total
Foreclosed assets stated in the Balance sheet as at 31 December 2012, in the amount of HRK 13,741thousand (At 31 December 2011: HRK 8,354 thousand), relates to foreclosed assets by the Bank, asreplacement for outstanding loans and placement receivables. The Bank Management Board estimates thatthe value of foreclosed assets approximate to their actual market value.
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
37
DESCRIPTION
25. OTHER ASSETS (in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
6.261
2.924
6
1.400
0
464
636
12.439
1.831
(5.968)
19.993
6.555
2.777
7
1.384
198
60
298
11.613
1.760
(5.976)
18.676
Interest receivables
Receivables for fees and provisions
Derivative assets
Trade receivables
Receivables for paid income tax
Prepayment receivables
Prepayments
Other receivables
Deferred tax property
Impairment
Total
DESCRIPTION
Movements on impairment are shown as follows: (in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
5.976
2.066
(1.494)
0
(580)
5.968
5.194
2.557
(1.734)
1
(42)
5.976
Balance at 1 January
New impairment (Note 13)
Collected and relieved amounts
Foreign exchange differences
Write-offs and corrections
rBalance at 31 Decembe
DESCRIPTION
26. DUE TO BANKS (in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
2.617
2.617
2.596
2.596
Term deposits
- foreign currency
Total
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
38
DESCRIPTION
27. DEMAND DEPOSITS (in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
64.598
53.068
36.456
4.170
174
36.824
70
361
89
53
619
117.666
40.626
174
36.894
450
672
196.482
55.250
54.414
35.320
7.037
111
48.920
75
146
441
15
984
109.664
42.357
111
48.995
587
999
202.713
Demand deposits - individuals
- HRK
- foreign currency
Demand deposits – trade companies
- HRK
- foreign currency
Demand deposits - financial institutions
- HRK
Demand deposits – State and other institutions
- HRK
- foreign currency
Restricted deposits
- HRK
- foreign currency
Demand deposits - foreigners
- HRK
- foreign currency
Total individuals
Total trade companies
Total financial institutions
Total State and other institutions
Total restricted deposits
Total foreigners
Total
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
39
DESCRIPTION
28. TERM DEPOSITS (in thousands of Kuna)
At 31 Dec 2012At 31 Dec 2011
189.369
580.592
17.957
626
24.217
13.360
20.945
165
12.579
769.961
18.583
37.577
21.110
12.579
859.810
180.769
558.308
22.956
24.198
25.109
12.915
11.658
159
12.466
739.077
47.154
38.024
11.817
12.466
848.538
Deposits individuals
- HRK
- foreign currency
Deposits – trade companies
- HRK
- foreign currency
Deposits – financial institutions
- HRK
- foreign currency
Deposits – State and other institutions
- HRK
- foreign currency
Deposits – foreigners
- foreign currency
Total individuals
Total trade companies
Total financial institutions
Total State and other institutions
Total foreigners
Total
DESCRIPTION
29. LOAN LIABILITIES (in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
126.176
21.913
10.941
159.030
41.097
0
15.061
56.158
Domestic banks (HBOR)
Dometic nonbank financial institutions
Foreign banks
Total loan liabilities
Due to HBOR as at 31 December 2012 amounted to HRK 126,176 thousand (at 31 December 2011:HRK 41,097 thousand). These sources were intended for approval of the loans to legal entities and individualsin accordance with Croatian Bank for Reconstruction and Development programs (HBOR). Depending on theloan purpose, interest rates ranged from 0% to 5% (2011: from 0% to 5.5%).
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
40
DESCRIPTION
DESCRIPTION
30. OTHER LIABILITIES
31. PROVISIONS
(in thousands of Kuna)
(in thousands of Kuna)
At 31 Dec 2011
At 31 Dec 2011
At 31 Dec 2012
At 31 Dec 2012
22.955
1
5
1.758
308
122
2.025
10.489
4.615
3.762
48
46.088
2.292
644
2.936
22.675
3
10
1.744
6
122
1.632
9.810
6.392
2.672
49
45.115
2.107
505
2.612
Interest payable
Fee and commission payables
Derivative liabilities
Liabilities to employees
Liabilities for taxes and contributions from income
Dividend liabilities
Trade payables
Deferred interest income
Liabilities for loans over payments
Other liabilities
VAT liabilities
Total
Provisions for court disputes
Provisions for identified cumulativelosses by off-balance contingent liabilities
Total
DESCRIPTION
Movements in provisions are shown as follows: (in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
2.612
185
139
2.936
2.333
244
35
2.612
Balance at 1 January
Changes in provisions for court disputes
Movements in provisions for contingent liabilities and commitments (Note 13)
Balance at 31 December
Due to domestic nonbank financial institutions as at 31 December 2012 in amount of HRK 21,913 isrelated to Repurchase and Reverse Repurchase Agreement with Auctor Invest. Repurchase and ReverseRepurchase rate is fixed in range from 4.5% to 6.0%, depand on agreement.
Due to foreign banks as at 31 December 2012 relate to liability to Zveza Bank, Klagenfurt, Austria inthe amount of HRK 10,941 thousand (at 31 December 2011: HRK 15,061 thousand). The loan was grantedin the amount of EUR 1,450 thousand, with singl maturity on 30 June 2017. Interest rate is 4.75% (variable),and is calculated quarterly. The loan was secured by pledge right on the property in Slatina (Note 22).
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
41
SHAREHOLDER
As at 31 December 2012, largest Bank’s shareholders are shown as follows:
Portionin the
stock capital
in %
At 31 Dec 2012
number of shares
152.502
76.494
72.510
71.374
50.271
40.258
29.962
29.960
29.073
27.792
25.300
19.500
15.519
11.000
10.063
9.000
8.958
8.909
8.703
7.747
7.344
7.257
6.073
4.596
3.853
3.036
181.918
918.972
16,59
8,32
7,89
7,77
5,47
4,38
3,26
3,26
3,16
3,02
2,75
2,12
1,69
1,20
1,10
0,98
0,97
0,97
0,95
0,84
0,80
0,79
0,66
0,50
0,42
0,33
19,80
100,00
HYPO ALPE-ADRIA-BANK D.D./ SZIF D.D. (1/1)DRŽAVNA AGENCIJA ZA OSIG. ŠTEDNIH ULOGA I SANACIJU (1/1)SOKAČIĆ DRAGUTIN (1/1)SB-S D.D. (1/1)ZAGREBAČKA BANKA D.D./ SAVA - RE D.D. (1/1)RAIFFEISENBANK AUSTRIA D.D./ ADRIS GRUPA D.D. (1/1)GALIĆ JOSIP (1/1)MRKOCI MILIVOJ (1/1)FINESA CREDOS D.D., FINANCIJSKA KOMPANIJA (1/1)CROATIA LLOYD D.D. (1/1)PBZ D.D./ PBZ EQUITY - OIF S JAVNOM PONUDOM (1/1)PBZ D.D./ PBZ I-STOCK FOND - OIF S JAVNOM PONUDOM (1/1)ERGOVIĆ IVAN (1/1)VELEBIT ŽIVOTNO OSIGURANJE D.D. (1/1)BORAS ARIJANA (1/1)SESAR IVAN (1/1)TVIN D.O.O. (1/1)VUKELIĆ IVAN (1/1)ZAGREBAČKA BANKA D.D./ ALLIANZ ZAGREB D.D. (1/1)PRIJIĆ SLOBODAN (1/1)STRIZREP TIHOMIR (1/1)BERIŠIĆ ROBERT (1/1)BAHOVEC SREČKO (1/1)SATO D.O.O. (1/1)VRDOLJAK ANTE (1/1)HRVATSKE ŠUME D.O.O. (1/1)OthersTOTAL
32. CAPITALAs at 31 December 2012 subscribed capital amounted to HRK 91,897 thousand and has been
divided into 918,972 shares each at a nominal value of HRK 100.Pursuant to the decision of the Assembly from 29 June 2006 on abolishing privileged shares, it was
determined that the Bank share capital of HRK 91,897 thousand will be divided into 172,412 non-materializedregistered shares out of which 114,662 are regular non-materialized shares of the A series at nominal value ofHRK 600 each and 57,750 are privileged non-materialized shares of the B series at nominal value of HRK400. Pursuant to this decision this privilege was cancelled entirely thus turning the mentioned shares intoregular non-materialized registered shares, each at nominal value of HRK 400. Pursuant to the decision of theAssembly from 29 June 2006 on the division of shares, one regular Bank registered share at nominal value ofHRK 600 is divided into 6 regular Bank registered shares at nominal value of HRK 100; one earlier privilegedBank share at nominal value of HRK 400 is divided into 4 regular Bank shares, at nominal value of HRK 100.
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
42
DESCRIPTION
DESCRIPTION
33. EARNINGS PER SHARE
34. CONTINGENT LIABILITIES AND COMMITMENTS (in thousands of Kuna)
At 31 Dec 2011
At 31 Dec 2011
At 31 Dec 2012
At 31 Dec 2012
4.997
918,972
5,44 kune
6.376
0
6.618
783
555
53.556
(644)
67.888
67.244
3.327
918,972
3,62 kune
2.783
177
5.072
200
320
45.420
(505)
53.972
53.467
Profit for the current year
Number of shares (in thousands)
Earnings per share
Performance guarantees
- HRK
- foreign currencies
Payment guarantees
- HRK
- foreign currencies
Letters of credit
- foreign currencies
Not withdrawn loan facilities
Provisions for contingent liabilities and commitments
Total
Total
DESCRIPTION
35. CASH AND CASH EQUIVALENTS (in thousands of Kuna)
At 31 Dec 2011At 31 Dec 2012
133.357
36.326
139.882
25.840
335.405
125.816
122.927
104.080
32.438
385.261
Cash
Placements with other banks with remaining maturity up to 3 months
Treasury bills and bills of exchange with remaining maturityup to 3 months – portfolio available for sale
Treasury bills and bills of exchange with remaining maturityup to 3 months – portfolio held to maturity
Total
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
43
DESCRIPTION
DESCRIPTION
36. FUNDS FOR AND ON BEHALF OF THIRD PARTIES
(in thousands of Kuna)
At 31 Dec 2011
At 31 Dec 2011
At 31 Dec 2012
At 31 Dec 2012
12.524
(12.200)
324
24.964
(24.863)
101
Total Sources
Less: Assets
Unused funds
(in thousands of Kuna)
The Bank is managing Funds for and on behalf of third parties mainly placed in the form ofborrowings.These funds are booked separately from the Bank funds. Income and expenses based on thesefunds are booked as income or expense of certain source, and the Bank does not bear any risk in this respect.For its services the Bank charged fee which was debited to these funds.
37. RELATED PARTY TRANSACTIONS
Related parties are those in which one party is controlling or have significant influence in governingthe financial and operating business decisions of other party. Bank activities with the related parties areconducted in the course of ordinary operations, which include loans and deposits assignation. Mentionedtransactions are conducted under commercial conditions and market rates, respectively, prices. Total amountof transactions with related parties, closing balances at the end of a year and related income and expense forthe year are shown as follows:
Loans and prepayments to customers
Total
Contingent liabilities and commitments
Total
Demand deposits
Total
Term deposits
Total
Shareholders with 5 or more percent of voting shares
Members of the Supervisory Board and their related parties
Other (employees and their related parties)
Other (employees and their related parties)
Shareholders with 5 or more percent of voting shares
Other (employees and their related parties)
Turbina d.o.o., Slatina
Shareholders with 5 or more percent of voting shares
Other (employees and their related parties)
Turbina d.o.o., Slatina
7.636
344
4.075
611
76
143
343
0
4.606
3.261
12.055
611
562
7.867
-
15.033
5.368
695
-
698
236
1.004
1.223
3.083
20.401
695
934
5.310
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
44
DESCRIPTION At 31 Dec 2011At 31 Dec 2012
561
1
299
5.685
302
36
569
6
4
230
180
6.546
913
414
290
89
12
5.759
22
1.145
274
6
2
51
148
6.150
1.447
201
Other assets
Total
Income
Total
Expenses
Total
Shareholders with 5 or more percent of voting shares
Members of the Supervisory Board and their related parties
Others (employees and their related parties)
Turbina d.o.o., Slatina
Shareholders with 5 or more percent of voting shares
Members of the Supervisory Board and their related parties
Other (employees and their related parties)
Turbina d.o.o., Slatina
Shareholders with 5 or more percent of voting shares
Other (employees and their related parties)
Turbina d.o.o., Slatina
(in thousands of Kuna)
DESCRIPTION
Remuneration to the Management Board is shown as follows:
At 31 Dec 2011At 31 Dec 2012
1.959
2.447
4.406
1.201
1.461
2.662
Net salaries
Taxes and contributions
Total
(in thousands of Kuna)
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
38. INTEREST RISK
The following table represents the carrying value of the Bank's assets and liabilities, categorized by the earliercontractual re-pricing or maturity, depending which term is earlier as at 31 December 2012.
45
2012Up to 1month
(in thousands of Kuna)
ASSETS
Total assets
LIABILITIES
CAPITAL
Total capital
Total liabilities and capital
Net assets/liabilities and capital
Cash
Placements with banksFinancial assetsavailable for sale
Financial assetsheld to maturity
Loans and prepayments
Investments in subsidiaries
Property, plant, equipment
Intangible assets
Foreclosed assets
Other assets
Due to banks
Demand deposits
Term deposits
Liabilities for received loans
Other liabilities
Provisions
Total liabilities
Subscribed capital
Own shares
Capital gains
Revaluation reserves
Reserves
Retained earnings
Profit of the current year
Receivables from Croatian National Bank
to customers
0
100.005
35.755
18.590
13.669
166.588
0
0
0
0
0
0
191.566
349.246
33.559
0
0
0
0
0
0
0
0
0
334.607
574.371
0
574.371
(239.764)
0
0
571
11.766
12.170
79.587
0
0
0
0
0
0
0
106.670
12.622
0
0
0
0
0
0
0
0
0
104.094
119.292
0
119.292
(15.198)
0
0
0
11.602
0
190.262
0
0
0
0
0
0
0
71.114
26.629
0
0
0
0
0
0
0
0
0
201.864
97.743
0
97.743
104.121
0
0
0
4.022
0
188.650
0
0
0
0
0
0
0
7.290
44.211
0
0
0
0
0
0
0
0
0
192.672
51.501
0
51.501
141.171
133.357
59.490
0
431
0
0
5.679
27.315
6.273
13.741
19.993
2.617
4.916
17.603
2.367
46.088
2.936
91.897
(6.592)
1.799
149
14.357
68.687
4.997
266.279
76.527
175.294
251.821
14.458
133.357
159.495
42.065
174.422
83.098
776.819
5.679
27.315
6.273
13.741
19.993
1.442.257
2.617
196.482
859.810
159.030
46.088
2.936
1.266.963
91.897
(6.592)
1.799
149
14.357
68.687
4.997
175.294
1.442.257
0
0
0
5.739
128.011
57.259
151.732
0
0
0
0
0
0
0
307.887
39.642
0
0
0
0
0
0
0
0
0
342.741
347.529
0
347.529
(4.788)
From 1 to3 months
From 3 to12 months
From 1 to3 years
Over3 years
Interestfree TOTAL
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
The following table represents the carrying value of the Bank's assets and liabilities,categorized by the earlier contractual re-pricing or maturity, depending which term is earlier as at31 December 2011.
46
(in thousands of Kuna)
ASSETS
Total assets
LIABILITIES
CAPITAL
Total capital
Total liabilities and capital
Net assets/liabilities and capital
Cash
Placements with banksFinancial assetsavailable for sale
Financial assetsheld to maturity
Loans and prepayments
Investments in subsidiaries
Property, plant, equipment
Intangible assets
Foreclosed assets
Other assets
Due to banks
Demand deposits
Term deposits
Liabilities for received loans
Other liabilities
Provisions
Total liabilities
Subscribed capital
Own shares
Capital gains
Revaluation reserves
Reserves
Retained earningsand profit of the current year
Receivables from Croatian National Bank
to customers
65.992
102.405
122.787
7.118
15.814
156.063
0
0
0
0
0
0
192.831
535.910
16.046
0
0
0
0
0
0
0
0
470.179
744.787
0
744.787
(274.608)
0
0
140
19.891
16.305
51.406
0
0
0
0
0
0
0
80.220
1.551
0
0
0
0
0
0
0
0
87.742
81.771
0
81.771
5.971
0
0
5.150
0
1.183
183.545
0
0
0
0
0
0
0
46.654
12.624
0
0
0
0
0
0
0
0
189.878
59.278
0
59.278
130.600
0
0
0
30.738
0
139.832
0
0
0
0
0
0
0
4.708
21.118
0
0
0
0
0
0
0
0
170.570
25.826
0
25.826
144.744
59.824
15.864
0
431
0
0
5.759
27.173
4.649
8.354
18.676
2.596
9.882
18.088
279
45.115
2.612
91.897
(398)
149
(1.223)
14.357
68.687
140.730
78.572
173.469
252.041
(111.311)
125.816
118.269
129.085
143.365
87.582
662.473
5.759
27.173
4.649
8.354
18.676
2.596
202.713
848.538
56.158
45.115
2.612
91.897
(398)
149
(1.223)
14.357
68.687
1.331.201
1.157.732
173.469
1.331.201
0
0
0
1.008
85.187
54.280
131.627
0
0
0
0
0
0
0
162.958
4.540
0
0
0
0
0
0
0
0
272.102
167.498
0
167.498
104.604
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
2011Up to 1month
From 1 to3 months
From 3 to12 months
From 1 to3 years
Over3 years
Interestfree TOTAL
47
Table below shows effective interest rates for interestbearing assets and liabilities:
2012.
%
Assets
Liabilities
Receivables from Croatian National Bank
Placements with banks
Financial assets held to maturity
Loans and prepayments to customers
Due to banks
Demand deposits
Term deposits
Loan liabilities
(in thousands of Kuna)
39. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value represents the amount in which funds can be exchanged or liabilities settled in the bestinterest of all parties. Since market prices for the major part of Bank’s financial assets and liabilities are notavailable, the fair value of these items is based on the estimates of the Management Board according to thetype of assets and liabilities. According to the estimation of the Management Board, the market value is notmaterially different from the book value of all categories of assets and liabilities.
0,00 - 0,25
0,01 - 6,00
5,25 – 10,00
3,00 – 14,00
-
0,00 - 3,70
0,50 - 6,00
0,00 - 6,00
0,00 - 0,25
0,005 - 3,70
2,70 - 10,00
0,25 - 15,00
-
0,00 - 1,50
0,50 - 8,00
0,00 - 3,75
2011.
%
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
DESCRIPTION
(in thousands of Kuna)
Geographic region
Total geographic region
Sector
Total analysis by sector
Republic of Croatia
Europe
Republic of Croatia
Croatian National Bank
Trade
Finance
Tourism
Agriculture, fishery
Industry
Individuals (including craftsmenand other independentprofessions)
Non-residents
Other
1.341.910
100.347
196.887
185.053
164.400
59.298
11.675
92.159
115.825
436.565
99.344
81.051
1.442.257
1.442.257
At 31 Dec 2012
Assets LiabilitiesOff-balancesheet items
At 31 Dec 201
48
40. CONCENTRATION OF ASSETS,LIABILITIES AND OFF-BALANCE SHEET ITEMS
Assets LiabilitiesOff-balancesheet items
1.415.362
26.895
45.625
9
14.936
188.484
1.698
3.779
7.501
887.468
24.278
268.479
1.442.257
1.442.257
67.888
8.692
0
4.707
8.778
1.429
1.808
6.872
25.926
0
9.676
67.888
67.888
1.216.881
114.320
150.164
118.269
156.056
82.627
5.474
68.671
57.675
383.399
114.320
194.546
1.331.201
1.331.201
1.297.251
33.950
50.946
9
15.239
80.271
1.221
7.521
8.894
886.971
33.950
246.179
1.331.201
1.331.201
53.972
0
0
6.956
10.000
1.130
2.078
3.761
27.134
0
2.913
53.972
0
53.972
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
49
2011. EUR
(in thousands of Kuna)
ASSETS
Total assets
LIABILITIES
Total liabilities
CAPITAL
Total capital
Total liabilities and capital
Cash
Receivables from Croatian National Bank
Placements with banks
Financial assetsavailable for sale
Financial assetsheld to maturity
Loans and prepayments to customers
Investments in subsidiaries
Property, plant, equipment
Intangible assets
Foreclosed assets
Other assets
Due to banks
Demand deposits
Term deposits
Liabilities for received loans
Other liabilities
Provisions
Subscribed capital
Own shares
Capital gains
Revaluation reserves
Reserves
Retained earnings
Profit for the current year
Net assets/liabilities and capital
57.486
14.269
30.692
0
0
0
0
0
0
0
2.285
0
51.369
594.023
53.488
17.838
0
0
0
0
0
0
0
0
0
104.732
716.718
716.718
(611.986)
7.669
0
0
0
0
0
0
0
0
0
0
0
1.803
6.253
0
106
0
0
0
0
0
0
0
0
0
7.669
8.162
8.162
(493)
0
0
0
86.218
0
509.121
0
0
0
0
46
0
0
28.075
0
652
0
0
0
0
0
0
0
0
0
595.385
28.727
28.727
566.658
76.967
14.269
32.051
86.218
0
509.121
0
0
0
0
2.776
2.617
57.255
635.397
53.488
18.660
0
0
0
0
0
0
0
0
0
721.402
767.417
767.417
(46.015)
56.390
145.226
10.014
88.204
83.098
267.698
5.679
27.315
6.273
13.741
17.217
0
139.227
224.413
105.542
27.428
2.936
91.897
(6.592)
1.799
149
14.357
68.687
4.997
175.294
720.855
499.546
674.840
46.015
133.357
159.495
42.065
174.422
83.098
776.819
5.679
27.315
6.273
13.741
19.993
2.617
196.482
859.810
159.030
46.088
2.936
91.897
(6.592)
1.799
149
14.357
68.687
4.997
1.442.257
1.266.963
175.294
1.442.257
0
11.812
0
1.359
0
0
0
0
0
0
0
445
2.617
4.083
7.046
0
64
0
0
0
0
0
0
0
0
0
13.616
13.810
13.810
(194)
USDOther
currencies
HRK withcurrencyclause
Total foreigncurrency
equivalents HRK TOTAL
41. CURRENCY RISK
Bank's foreign currencies and liabilities as at 31 December 2012are shown as follows:
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
(in thousands of Kuna)
50
Bank's foreign currencies and liabilities as at 31 December 2011are shown as follows:
2011. EUR
ASSETS
Total assets
LIABILITIES
Total liabilities
CAPITAL
Total capital
Total liabilities and capital
Net assets/liabilities and capital
Cash
Placements with banks
Financial assetsavailable for sale
Financial assetsheld to maturityLoans and prepayments
Investments in subsidiaries
Property, plant, equipment
Intangible assets
Foreclosed assets
Other assets
Due to banks
Demand deposits
Term deposits
Liabilities for received loans
Other liabilities
Provisions
Subscribed capital
Own shares
Capital gains
Revaluation reserves
Reserves
Retained earnings
Receivables from Croatian National Bank
to customers
59.415
14.978
105.296
0
0
0
0
0
0
0
2.359
0
55.897
595.010
15.061
18.835
7
0
0
0
0
0
0
182.048
684.810
0
684.810
(502.762)
1.835
0
0
0
0
0
0
0
0
0
0
0
0
7.502
0
0
0
26
2.732
6.394
0
194
0
9.363
9.320
0
9.320
43
0
0
455
93.452
0
491.003
0
0
0
0
759
0
0
32.635
36.883
682
0
0
0
0
0
0
0
585.669
70.200
0
70.200
515.469
73.394
14.978
113.819
93.452
0
491.003
0
0
0
0
3.294
2.596
62.951
640.683
51.944
19.839
7
0
0
0
0
0
0
789.940
778.020
0
778.020
11.920
52.422
103.291
15.266
49.913
87.582
171.470
5.759
27.173
4.649
8.354
15.382
0
139.762
207.855
4.214
25.276
2.605
91.897
(398)
149
(1.223)
14.357
68.687
541.261
379.712
173.469
553.181
(11.920)
125.816
118.269
129.085
143.365
87.582
662.473
5.759
27.173
4.649
8.354
18.676
2.596
202.713
848.538
56.158
45.115
2.612
91.897
(398)
149
(1.223)
14.357
68.687
1.331.201
1.157.732
173.469
1.331.201
0
0
0
0
0
0
0
0
0
0
0
0
0
12.144
566
0
0
0
150
2.596
4.322
6.644
0
128
12.860
13.690
0
13.690
(830)
USDOstalevalute
HRK svalutnomklauzulom
Ukupnodevizni
ekvivalenti HRK UKUPNO
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
51
2011.
(in thousands of Kuna)
ASSETS
Total assets
LIABILITIES
Total liabilities
CAPITAL
Total capital
Total liabilities and capital
Net assets/liabilities and capital
Cash
Placements with banks
Financial assetsavailable for sale
Financial assetsheld to maturity
Loans and prepaymentsInvestments in subsidiaries
Property, plant, equipment
Intangible assets
Foreclosed assets
Other assets
Due to banks
Demand deposits
Term deposits
Liabilities for received loans
Other liabilities
Provisions
Subscribed capital
Own shares
Capital gains
Revaluation reserves
Reserves
Retained earnings
Profit for the current year
Receivables from Croatian National Bank
to customers
133.357
59.490
35.755
174.422
13.669
166.588
0
0
0
0
19.993
0
196.482
155.388
22.618
19.153
0
0
0
0
0
0
0
0
603.274
393.641
0
393.641
209.633
0
52.187
571
0
12.170
79.587
0
0
0
0
0
0
0
177.346
12.614
5.057
0
0
0
0
0
0
0
0
144.515
195.017
0
195.017
(50.502)
0
9.517
0
0
0
190.262
0
0
0
13.741
0
0
0
91.109
26.567
3.020
2.936
0
0
0
0
0
0
0
213.520
123.632
0
123.632
89.888
0
2.393
0
0
0
188.650
5.679
27.315
6.273
0
0
0
0
13.533
54.996
7.233
0
91.897
(6.592)
1.799
149
14.357
68.687
4.997
230.310
75.762
175.294
251.056
(20.746)
133.357
159.495
42.065
174.422
83.098
776.819
5.679
27.315
6.273
13.741
19.993
2.617
196.482
859.810
159.030
46.088
2.936
91.897
(6.592)
1.799
149
14.357
68.687
4.997
1.442.257
1.266.963
175.294
1.442.257
0
0
35.908
5.739
0
57.259
151.732
0
0
0
0
0
2.617
0
422.434
42.235
11.625
0
0
0
0
0
0
0
0
250.638
478.911
0
478.911
(228.273)
TOTAL
42. LIQUIDITY RISK
Remaining maturity of the Bank's assets and liabilities asat 31 December 2012 is shown as follows:
Up to 1 monthFrom 1
to 3 monthsFrom 3
to 12 monthsFrom 1
to 3 yearsOver
3 years
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
52
(in thousands of Kuna)Remaining maturity of the Bank's assets and liabilities asat 31 December 2011 is shown as follows:
2011.
ASSETS
Total assets
LIABILITIES
Total liabilities
CAPITAL
Total capital
Total liabilities and capital
Net assets/liabilities and capital
Cash
Placements with banks
Financial assetsavailable for sale
Financial assetsheld to maturityLoans and prepayments
Investments in subsidiaries
Property, plant, equipment
Intangible assets
Foreclosed assets
Other assets
Due to banks
Demand deposits
Term deposits
Liabilities for received loans
Other liabilities
Provisions
Subscribed capital
Own shares
Capital gains
Revaluation reserves
Reserves
Retained earnings
Receivables from Croatian National Bank
to customers
125.816
0
0
0
0
0
0
0
0
0
0
0
53.486
122.787
143.365
15.814
79.767
17.873
202.713
334.130
985
20.406
430
558.908
558.664
0
558.664
244
0
0
0
0
0
0
0
0
0
0
0
0
11.323
140
0
16.305
54.008
491
0
153.257
1.559
4.319
34
82.267
159.169
0
159.169
(76.902)
0
19.568
5.150
0
1.183
208.818
0
0
0
0
0
2.596
0
32.444
6.715
7.463
2.116
0
0
0
0
0
0
234.719
51.334
0
51.334
183.385
0
0
0
0
0
49.168
27.274
3.522
0
91.897
(398)
149
(1.223)
14.357
68.687
9.234
0
0
165.724
5.759
27.173
4.649
312
212.851
79.964
173.469
253.433
(40.582)
125.816
118.269
129.085
143.365
87.582
662.473
5.759
27.173
4.649
8.354
18.676
2.596
202.713
848.538
56.158
45.115
2.612
91.897
(398)
149
(1.223)
14.357
68.687
1.331.201
1.157.732
173.469
1.331.201
0
0
24.658
1.008
54.280
154.156
0
0
0
8.354
0
0
0
279.539
19.625
9.405
32
0
0
0
0
0
0
0
242.456
308.601
0
308.601
(66.145)
TOTALUp to 1 monthFrom 1
to 3 monthsFrom 3
to 12 monthsFrom 1
to 3 yearsOver
3 years
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
43. CREDIT RISK
The Bank is exposed to credit risk which is the risk that a counterparty will be unable to pay amounts in fullwhen due. The Bank structures the levels of credit risk by placing limits on the amount of risk accepted inrelation to one borrower, or groups of borrowers, and to geographical and industry segments. Such risks aremonitored on a revolving basis and subject to an annual or more frequent review.
Exposure to credit risk is managed through regular analysis of the ability of borrowers and potential borrowersto meet interest and capital repayment obligations and by changing these lending limits where appropriate.Exposure to credit risk is also managed in part by obtaining collateral and corporate and personal guarantees.
The primary purpose of credit commitments is to ensure that funds are available to a customer as required.Guarantees which represent irrevocable commitments that the Bank will settle the payment to the third partiesif the customers are not able, bear the same credit risk as other loans.
Contingent credit commitments represent undrawn portions of authorised loans and guarantees.According to credit risk related to contingent credit commitments, the Bank takes on potential loss exposure inthe amount equal to total undrawn contingent commitments. However, possible loss amount is lower than totalamount of undrawn contingent commitments, as the most of contingent credit commitments is related tomaintenance of specific credit standards by customers. The Bank monitors the term of maturity of contingentcredit commitments because longer-term commitments generally have a greater degree of credit risk thanshort-term.
On 18 March 2013 Elvis Mališ ceased to be a member of the Management Board.
After the Balance sheet/Statement of financial position date there were no significant events that couldhave the influence on the financial statements for the year 2012, which should be, consequently published.
At 31 December 2012 against the Bank is led 12 court disputes of smaller value, besides the disputewhich was started by part of Jugobanka a.d. in bankruptcy, Belgrade. Trade court in Bjelovar brought thesentence at 19 June 2008 (Official decision VP-167/08-27) by which, as unfounded was rejected thecomplaint request of an accuser. To the stated Official decision was lodged a Complaint which accuser hasstated against the sentence of the Trade court in Bjelovar.
Simultaneously, the accuser was demanded by a complaint the determining of temporary measure,and on this at 3 June 2008 the Republic of Croatia, High trade court of the Republic of Croatia, brought theOfficial decision Pž-3109/08-4 by which the complaint of accuser is rejected as unfounded and the officialdecision of the Trade court in Bjelovar is confirmed.
IV EVENTS AFTER THE BALANCE SHEET
V COURT DISPUTES AND POTENTIAL LIABILITIES
53
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
54
On the occasion of the prosecutor complaint, the High Commercial Court issued a judgment anddecision 53 Pž-6092/08-3 of 30 October 2012, which reversed the part of the judgment of the CommercialCourt in Bjelovar in relation to the issue of nullification Agreement of 26 October 1992 and found thecontract null and void. Simultaneously, High Commercial Court overturned, by the decision, the rest of thefirst instance judgment relating to claims for compensations of damages, arguing that these issues have notbeen sufficiently discussed, and the case in this part of the returned Commercial Court in Bjelovar on retrial,with instructions that the only debate questions whether there are grounds for compensations of damages,particularly in terms of the objection of limitation. Against the judgment, the Bank has applied for a review ofthe erroneous application of the substantive rights and substantial violations of civil procedure. According toestimates by the Bank's legal counsel Croatian Supreme Court should modify the judgment of the HighCommercial Court or back it for retrial.
The Bank made reservation of assets for the subject dispute according to art. 8 of the Decision onliabilities for making reservation for court disputes which are led against credit institution (National gazette nr1/09, 75/09 and 2/10).
STATEMENT OF INCOME / STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31 December 2012
VI APPROVAL OF THE FINANCIAL STATEMENTS
The financial statements were signed and authorised for issuing by the ManagementBoard on 29 March 2013.
Signed on behalf of the Board:
Angelina Horvat,President of the Management Board
Marko Krajina,Member of the Management Board
Marko Brnić,Member of the Management Board
Slatinska banka d.d.Vladimira Nazora 233520 SlatinaThe Republic of Croatia
Godišnja financijska izvješća prema
Odluci o strukturi i sadržaju godišnjih financijskih
izvještaja banaka Hrvatske narodne banke
55
APPENDIXOther legal and regulatory requirements
Additional reports for the Croatian National bank
In addition are shown annual financial statements of the Bank (the Statement of income for 2012,Balance sheet at 31 December 2012, the Cash Flows Statement for 2012 and the Statement of Changes inEquity for 2012) prescribed by the Decision of the Croatian National Bank regarding structure and content ofannual financial reports of banks, prescribed by Croatian National Bank (hereinafter: Decision).
PositionCurrent
yearPrevious
yearADSsign
1. Interest income2. Interest expense
4. Income from fees and commissions5. Expenses from fees and provisions
7. Profit / loss from investments in affiliates, associatedcompanies, joint ventures
8. Profit / loss from trading activity9. Profit / loss from derivatives built into
10. Profit / loss from property which is not traded actively, but is valued atfair value through P & L account11. Profit / loss from activities in category of property available for sale12. Profit / loss from activities in category which is held to maturity13. Profit / loss from protection transactions (hedge)14. Income from investments in affiliates, associated
companies and joint ventures15. Income from other equity investments16. Profit / loss from accounted foreign exchange differences17. Other income18. Other expense19. General administrative costs and depreciation
21. Cost of value adjustments and provisions for losses
3. Net interest income (048-049)
6. Net income from fees and provisions (051-052)
20. Net income from operations before value adjustmentand provisions (050+053 do 064-065-066)
22. PROFIT / LOSS BEFORE TAXATION (067-068)23. INCOME TAX24. PROFIT / LOSS FOR THE CURRENT YEAR (069-070)25. Earnings per share
048049050051052053
054055056
057058059060
061062063064065066
067068069070071072
83.927.18646.916.908
13.460.5103.356.819
-164.3583.580.917
-2.599
045.407
00
00
689.540909.453
4.279.28739.621.311
3.694.695
37.010.278
10.103.691
8.271.731
4.577.0361.249.7273.327.309
4
84.471.30947.889.837
13.011.3472.934.540
-79.9863.334.863
-1.147
03.872.660
00
00
-61.4771.780.9862.859.556
40.967.211
5.273.996
36.581.472
10.076.807
11.677.411
6.403.4151.406.5284.996.887
6
INCOME STATEMENT - for the period 01 Jan 2012 - 31 Dec 2012
56
57
APPENDIXOther legal and regulatory requirements
(in thousands of Kuna)BALANCE SHEET as at 31 Dec 2012
ASSETS
A) TOTAL ASSETS (001+004 do 016)
LIABILITIES
B) TOTAL LIABILITIES (018+021+025+028+029+032+033+034)
CAPITAL
C) TOTAL CAPITAL (036 do 042)
D) TOTAL LIABILTIES AND CAPITAL (035+043)
1. CASH AND DEPOSITS WITH CNB (002+003)1.1.Cash1.2.Deposits with CNB
2. DEPOSITS WITH BANKING INSTITUTIONS3. TREASURY NOTES OF THE MINISTRY OF FINANCE
AND TREASURY BILLS OF CNB4. SECURITIES AND OTHER FINANCIAL INSTRUMENTS HELD FOR TRADING5. SECURITIES AND OTHER FINANCIAL INSTRUMENTS
AVAILABLE FOR SALE6. SECURITIES AND OTHER FINANCIAL
INSTRUMENTS HELD TO MATURITY
8. DERIVATIVE FINANCIAL ASSETS9. LOANS TO THE FINANCIAL INSTITUTIONS
10. LOANS TO OTHER CUSTOMERS11. INVESTING IN AFFILIATES, ASSOCIATED COMPANIES AND JOINT VENTURES12. FORECLOSED ASSETS13. TANGIBLE ASSETS (LESS DEPRECIATION)14. INTEREST, FEES AND OTHER ASSETS
1. LOANS FROM FINANCIAL INSTITUTIONS (019+020)1.1. Short term loans1.2. Long term loans
2. DEPOSITS (AOP 022 do 024)2.1. Deposits on gyro accounts and current accounts2.2. Saving deposits2.3. Term deposits
3. OTHER LOANS (026+027)3.1. Short term loans3.2. Long term loans
4. DERIVATIVE FINANCIAL LIABILITIES AND OTHER FINANCIAL LIABILITIESWHICH ARE NOT TRADED
5. ISSUED EQUITY INSTRUMENTS (030+031)5.1. Issued short term security equity investments5.2. Issued long term security equity instruments
6. Issued subordinate instruments7. Issued hybrid instruments8. INTEREST, FEES AND OTHER LIABILITIES
1. SHARE CAPITAL2. PROFIT (LOSS) OF THE CURRENT YEAR3. RETAINED EARNINGS (LOSS)4. LEGAL RESERVES5. STATUTORY AND OTHER CAPITAL RESERVES6. UNREALIZED PROFIT (LOSS) ON THE BASIS OF VALUE ADJUSTMENT
OF FINANCIAL PROPERTY AVAILABLE FOR SALE7. RESERVES ARISEN FROM PROTECTION TRANSACTIONS (HEDGE)
7. SECURITIES AND OTHER FINANCIAL INSTRUMENTS WHICH ARE NOT TRADEDACTIVELY, BUT IS VALUED AT FAIR VALUE THROUGH P & L ACCOUNT
001002003004005
006
007
008
009010011012013014015016017
018019020021022023024025026027
028029030031032033034035
036037038039040
041042043
044
19.609.231158.571.634179.266.567104.080.484
0
39.284.687
87.582.425
06.818
15.722.199662.473.019
5.759.0258.354.557
27.447.76423.042.640
41.096.859
122.133.78279.994.742
848.538.122
017.656.661
9.779
0000
48.302.322
91.498.7803.327.308
65.359.4914.729.4239.777.000
-1.223.2190
178.180.865
1.331.201.050
41.096.859
1.050.666.646
17.656.661
0
1.157.732.267
173.468.783
1.331.201.050
27.411.820185.030.614112.544.271139.882.386
0
34.540.357
83.098.395
05.744
14.919.864771.829.064
5.679.03913.740.83927.534.76726.040.226
21.912.925126.175.758
114.488.14781.485.175
859.809.578
013.558.148
5.459
0000
49.527.838
85.304.8524.996.889
68.686.8004.729.4239.777.000
1.799.3940
212.442.434
1.442.257.386
148.088.683
1.055.782.900
13.558.148
0
1.266.963.028
175.294.358
1.442.257.386
PositionCurrent
yearPrevious
yearADSsign
58
APPENDIXOther legal and regulatory requirements
(in thousands of Kuna)CASH FLOWS STATEMENT -in the period 01 Jan 2012 do 31 Dec 2012
INDIRECT METHOD
POSLOVNE AKTIVNOSTI
ULAGA KE AKTIVNOSTI
1. Cash flow from operating activities before changes in business property(002 to 007)
2. Net increase / decrease in business property (009 do 016)
3. Net increase / decrease in operating liabilities (018 do 021)
4. Net cash flow from business activities before net income tax payment(001+008+017)
5. Paid income tax6. Net inflow /(outflow) of cash from operating activities (022+023)
7. Net cash flows from investment activities (026 to 030)
FINANCING ACTIVITIES8. Net cash flow from financing activities (032 to 037)
9. Net increase /decrease of cash and cash equivalents(024+025+031)
10. Effects of changes in foreign currencies on cash and cash equivalents11. Net increase/(decrease) in cash and cash equivalents (038+039)12. Cash and cash equivalents at the beginning of the year13. Cash and cash equivalents at the end of the year (040+041)
1.1. Profit / loss before tax
1.2. Impairment and loss provisions
1.3. Depreciation
1.4. Net unrealized (profit)/loss from financial assets and liabilities at fair value
through profit and loss account
1.5. Profit/loss from sale of tangible assets
1.6. Other income / losses
2.1. Deposits with CNB
2.2. Treasury notes of Ministry of Finance and treasury bills of CNB
2.3. Deposits at banking institutions and loans to financial institutions
2.4. Loans to other customers
2.5. Securities and other financial instruments held for trading
2.6. Securities and other financial instruments available for sale
2.7. Securities and other financial instruments non actively traded,
at fair value through profit and loss account
2.8. Other operating assets
3.1. Demand deposits
3.2. Saving and term deposits
3.3. Derivative financial liabilities and other liabilities which are traded
3.4. Other liabilities
7.1. Receipts from sale /(payments for purchase) of tangible and intangible assets
7.2. Receipts from sale /(payments for purchase)
investments in affiliates, associated companies and joint venture
7.3. Receipts from sale /(payments for purchase) of securities and other
financial instruments held to maturity
7.4. Received dividends
7.5. Other receipts (payments) from investing activities
8.1. Net increase / decrease/ of received loans
8.2. Net increase / decrease/ from the issue of equity and debt financial instruments
8.3. Net increase / decrease/ in subordinated and hybrid instruments
8.4. Receipts from emission of share capital
8.5. Paid off dividends
8.6. Other receipts / payments from financing activities
Č
001002003004
005006007008009010011012013014
015016017018019020021
022023024
025026
027
028029030
031032033034035036037
038039040041042
4.577.036
3.694.695
3.777.333
0
41.892
0
-30.882.089
-2.074.387
4.748.452
-29.644.066
0
-26.197.863
0
-5.333.375
-4.948.005
96.519.866
8
50.342
-1.249.727
-5.698.028
164.358
-18.338.693
0
8.775.568
0
0
0
0
-1.256.610
22.882.524
12.090.956
-89.383.328
91.622.211
14.329.839
13.080.112
-23.872.363
7.518.958
-3.273.293
-3.273.293
19.609.231
6.403.416
5.273.996
3.937.243
0
50.000
0
-26.458.980
-35.801.902
67.524.631
-112.219.413
0
4.744.330
0
-7.327.528
-7.645.635
12.761.889
-4.320
516.008
-1.406.527
-5.702.345
79.986
3.355.744
0
102.893.311
0
0
0
0
-3.171.315
19.609.231
15.664.655
-109.538.862
5.627.942
-88.246.265
-89.652.792
-2.266.615
99.721.996
7.802.589
7.802.589
27.411.820
PositionCurrent
yearPrevious
yearADSsign
STAT
EMEN
T O
F C
HA
NG
ES IN
EQ
UIT
Yfr
om 0
1 Ja
n 20
12 to
31
Dec
201
2
Bala
nce
at 1
Jan
uary
cur
rent
yea
r
Cor
rect
ed b
alan
ce a
t 1
Jan
uary
curr
ent ye
ar (
00
1+
00
2)
Net
gai
ns/l
osse
s di
rect
ly r
ecog
nize
din
cap
ital a
nd r
eser
ves
(00
4+
00
5+
00
6+
00
7)
Tota
l rec
ogni
zed
inco
me
and
expe
nses
for
the
curr
ent ye
ar (
00
8+
00
9)
Allo
catio
n of
pro
fit (
01
4+
01
5)
Bala
nce
at 3
1 D
ecem
ber
(00
3+
01
0+
01
1+
01
2+
01
3+
01
6)
Cha
nges
in a
ccou
ntin
g po
licie
san
d co
rrec
tion
of e
rror
s
Sale
of f
inan
cial
ass
ets
avai
labl
efo
r sa
le
Cha
nge
in fa
ir va
lue
of fi
nanc
ial
asse
ts a
vaila
ble
for
sale
Tax
to it
ems
dire
ctly
rec
ogni
zed
or tr
ansf
erre
d fr
om c
apita
l and
res
erve
s
Oth
er g
ains
/los
ses
dire
ctly
rec
ogni
zed
in c
apita
l and
res
erve
s
Prof
it/(lo
ss)
for
the
curr
ent y
ear
Incr
ease
/dec
reas
e in
sha
re c
apita
l
Purc
hase
/sal
e of
trea
sury
sha
res
Oth
er c
hang
es
Tran
sfer
to r
eser
ves
Pay
off o
f div
iden
ds
001
003
008
010
016
017
002
004
005
006
007
009
011
012
013
014
015
91.8
97.2
00
91.8
97.2
00
0 0 0
91.8
97.2
00
-398
.420
-398
.420 0 0 0
-6.1
93.9
27
14.5
06.4
23
14.5
06.4
23 0 0 0
14.5
06.4
23
65.3
59.4
91
65.3
59.4
91 0 0
3.32
7.30
8
3.32
7.30
8
68.6
86.7
99
3.32
7.30
8
3.32
7.30
8 0
4.99
6.88
9
4.99
6.88
9
-3.3
27.3
08
4.99
6.88
9
-3.3
27.3
08
-1.2
23.2
19
3.02
2.61
3
-1.2
23.2
19
3.02
2.61
3
3.02
2.61
3
1.79
9.39
40
0 0 0 0 0
AO
PPo
sitio
nSh
are
capi
tal
Trea
sury
shar
es
Lega
l,st
atut
ory
and
othe
rre
serv
es
Rasp
olož
ivo
dion
ičar
ima
mat
ično
g dr
uštv
a
Reta
ined
earn
ings
/ lo
ss
Prof
it /
loss
of th
ecu
rren
tye
ar
Unr
ealiz
edpr
ofit/
loss
on th
e ba
sis
of v
alue
adju
stm
ent o
ffin
anci
al a
sset
sav
aila
ble
for
sale
Min
ority
inte
rest
(in th
ousa
nds
of K
una)
Tota
lca
pita
land r
eser
ves
173.
468.
783
3.02
2.61
3
173.
468.
783
3.02
2.61
3
4.99
6.88
9
8.01
9.50
2
-6.1
93.9
27 0
175.
294.
358
59
Inad
ditio
nth
ere
conc
iliat
ion
ofst
atut
ory
annu
alfin
anci
alst
atem
ents
prep
ared
inac
cord
ance
with
repo
rting
fram
ewor
kan
dan
nual
stat
utor
yfin
anci
alst
atem
ents
pre
scrib
ed b
y th
e C
NB
Dec
isio
n on
stru
ctur
e an
d co
nten
t of a
nnua
l fin
anci
al s
tate
men
ts o
f ban
ks:
Fina
ncia
l rep
ort
Am
ount
CN
BA
mou
ntD
iffer
ence
Expl
anat
ion
Inte
rest
inco
me
Inte
rest
exp
ense
Inco
me
from
com
mis
sion
s an
d fe
es
Inco
me
from
com
mis
sion
s an
d fe
es
Prof
it /
loss
from
trad
ing
activ
ity
Prof
it /
loss
from
der
ivat
ives
bui
lt in
to
Prof
it (lo
ss) f
rom
act
iviti
es in
cat
egor
yof
pro
perty
ava
ilabl
e fo
r sal
e
Oth
er in
com
e–
EXTR
AORD
INAR
Y IN
CO
ME
Oth
er c
osts
Com
mon
adm
inis
trativ
e co
sts
and
depr
ecia
tion
Cos
t of v
alue
adj
ustm
ents
and
prov
isio
n fo
r los
ses
Prof
it (lo
ss) f
rom
inve
stm
ents
in a
ffilia
tes,
asso
ciat
ed c
ompa
nies
and
join
t ven
ture
Prof
it (lo
ss) b
efor
e ta
x
Inco
me
tax
Prof
it /
loss
from
acc
rued
fore
ign
exch
ange
diff
eren
ces
Prof
it fo
r th
e cu
rren
t yea
r
Inte
rest
inco
me
Inte
rest
exp
ense
Inco
me
from
fees
and
com
mis
sion
s
Expe
nses
from
fees
and
com
mis
sion
s
Net
inco
me
from
fore
ign
exch
ange
diff
eren
ces
Oth
er in
com
e fro
m re
gula
r ope
ratio
ns
Oth
er e
xpen
ses
Impa
irmen
ts a
nd p
rovi
sion
s
Prof
it be
fore
tax
Inco
me
tax
Prof
it fo
r th
e ye
ar
84.4
59
(47.
812)
13.0
11
(2.9
34)
3.18
9
5.65
4
(43.
642)
(5.5
22)
6.40
3
(1.4
06)
4.99
7
84.4
71
(47.
890)
13.0
11
(2.9
34)
3.33
5
(1)
(61)
3.87
3
1.78
1
(2.8
60)
(40.
967)
(5.2
74)
(80)
6.40
3
(1.4
06)
4.99
7
(12)
Net
fore
ign
exch
ange
diff
eren
ces
on th
e ba
sis
of in
tere
st in
com
e
78N
et fo
reig
n ex
chan
ge d
iffer
ence
son
the
basi
s of
inte
rest
exp
ense
11N
et fo
reig
n ex
chan
ge d
iffer
ence
son
the
basi
s of
inte
rest
inco
me
(78)
Net
fore
ign
exch
ange
diff
eren
ces
on th
e ba
sis
of in
tere
st e
xpen
se
(17)
Net
fore
ign
exch
ange
diff
eren
ces
185
Prov
isio
ns o
f cou
rt di
sput
es
(185
)Pr
ovis
ions
of c
ourt
disp
utes
17N
et fo
reig
n ex
chan
ge d
iffer
ence
s
upon
val
ue p
rovi
sion
s of
pla
cem
ents
upon
val
ue p
rovi
sion
s of
pla
cem
ents
(12) 78 0 0
(84) 0
185
(168
)
60
Fina
ncia
l rep
ort
Amou
ntC
NB
Amou
ntD
iffer
ence
Expl
anat
ion
Cas
h
Dep
osits
with
CN
B
Dep
osits
with
ban
king
inst
itutio
ns
Loan
s to
fina
ncia
l ins
titut
ions
Secu
ritie
s an
d ot
her f
inan
cial
inst
rum
ents
whi
ch a
re h
eld
to m
atur
ity
Trea
sury
not
es o
f MF
and
treas
ury
bills
of C
NB
Secu
ritie
s an
d ot
her f
inan
cial
inst
rum
ents
avai
labl
e fo
r sal
e
Loan
s to
oth
er c
usto
mer
s
Inve
stm
ent i
n af
filia
te c
ompa
nies
Cas
h as
sets
Rece
ivab
les
from
Cro
atia
n N
atio
nal B
ank
Plac
emen
ts w
ith b
anks
Fina
ncia
l ass
ets
held
to m
atur
ity
Fina
ncia
l ass
ets
avai
labl
e fo
r sal
e
Loan
s an
d pr
epay
men
ts to
cus
tom
ers
Inve
stm
ent i
n af
filia
te c
ompa
ny
133.
357
159.
495
42.0
65
83.0
98
174.
422
776.
819
5.67
9
27.4
12
185.
031
112.
544
14.9
20
83.0
98
139.
882
34.5
40
771.
829
5.67
9
25.7
55G
yro-
acco
unt (
acco
unt f
orse
ttlem
ent)
with
CN
B
69.2
85D
eman
d de
posi
ts w
ithfo
reig
n ba
nks
11.8
13D
eman
d de
posi
ts w
ithdo
mes
tic b
anks
(908
)Re
serv
es o
n an
agg
rega
teba
sis
(25.
755)
Gyr
o-ac
coun
t(fo
r set
tlem
ent )
with
CN
B
219
Gen
eral
rese
rves
(69.
285)
Dem
and
depo
sits
with
fore
ign
bank
s
(4.9
90)
Cre
dits
non
bank
finan
cial
inst
.
(11.
813)
Dem
and
depo
sits
with
dom
estic
ban
ks
689
Rese
rves
on
anag
greg
ate
basi
s
4.99
0kr
editi
neb
anko
vnim
finan
cijs
kim
inst
ituci
jam
a
105.
945
(25.
536)
(85.
399) 0 0
4.99
0 0
61
Izno
sO
braz
ac H
NB-
aIz
nos
Razl
ika
Obj
ašnj
enje
Fore
clos
ed a
sset
s
Tang
ible
ass
ets
(less
dep
reci
atio
n)
Inte
rest
, fe
es a
nd o
ther
ass
ets
Der
ivat
ive
finan
cial
ass
ets
Tota
l ass
ets
13.7
41
27.3
15
6.27
3
19.9
93
1.44
2.25
7
13.7
41
27.5
35
26.0
40 6
1.44
2.25
7
(220
)ot
her t
angi
ble
asse
ts
(sm
all i
nven
torie
s)
220
othe
r tan
gibl
e as
sets
(sm
all i
nven
torie
s)
0
(220
)
220
Fina
ncijs
ki iz
vješ
taji
Fore
clos
ed a
sset
s
Prop
erty,
pla
nt a
nd e
quip
men
t
Inta
ngib
le a
sset
s
Oth
er a
sset
s
TO
TA
L A
SS
ET
S
62
Fina
ncia
l rep
ort
Amou
ntC
NB
Amou
ntD
iffer
ence
Expl
anat
ion
Dep
osits
on
gyro
acc
ount
s an
d cu
rren
t acc
ount
s
Savi
ng d
epos
its
Term
dep
osits
Long
term
loan
s fro
m fi
nanc
ial i
nstit
utio
ns
Long
term
oth
er lo
ans
Inte
rest
, fee
s an
d ot
her l
iabi
litie
s
Der
ivat
ive
fina
ncia
l lia
bilit
ies
Tota
l lia
bilit
ies
CAP
ITAL
Shar
e ca
pita
l
Prof
it (lo
ss) o
f the
cur
rent
yea
r
Reta
ined
ear
ning
s (lo
ss)
Lega
l res
erve
s
Stat
utor
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d ot
her c
apita
l res
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s
Unr
ealiz
ed p
rofit
/ (l
oss)
from
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inan
cial
asse
ts a
vaila
ble
for s
ale
Tota
l cap
ital
TOTA
L LI
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LITI
ES A
ND
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Liab
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s to
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ks
Dem
and
depo
sits
Term
dep
osits
Liab
ilitie
s up
on re
ceiv
ed lo
ans
Oth
er li
abili
ties
Prov
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ns
Tota
l lia
bilit
ies
CAP
ITAL
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crib
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n sh
ares
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it (lo
ss) o
f the
cur
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it
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rves
Cap
ital g
ains
Reva
luat
ion
rese
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Tota
l cap
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TOTA
L LI
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ES A
ND
CA
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L
2.61
7
196.
482
859.
810
159.
030
46.0
88
2.93
6
1.26
6.96
3
91.8
97
-6.5
92
4997
68.6
87
14.3
57 149
1.79
9
175.
294
1.44
2.25
7
114.
488
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85
859.
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13.5
58
49.5
28 5
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3
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05
4.99
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7Lo
an o
f oth
er n
on re
side
nts
509
Rest
ricte
d de
posi
ts
(2.6
17)
Loan
of o
ther
non
resi
dent
s
(509
)Re
stric
ted
depo
sits
2.61
7
509 0
(2.6
17)
(509
) 0 0 0 0 0 0 0 0
63
64
CORPORATE MANAGEMENT CODEX
ANNUAL QUESTIONNAIRE
GENERAL COMPANY INFORMATION:
CONTACT PERSON AND TELEPHONE NUMBER:
DATE OF FINNING IN THE QUESTIONNAIRE:
All questions in this questionnaire pertain to the period of one fiscal year to which the annual financial statements also pertain.
Please use explanations in your responses only when the questions asks for them explicitly.
Answers found in the questionnaire are valued at certain percentages, shown at the beginning of each chapter
DEDICATION TO PRINCIPLES OF CREATIVE MANAGEMENT AND SOCIAL RESPONSIBILITY
Answers to this set of questions carry 20% of the entire indicator with respect to the harmonization of the company with the corporate management codex.
ExplanationQuestionQuestion
No.
Answer
YES/NO
Has the company accepted the change of the corporate management codex, or adopted its
own corporate management policy?
Are there adopted corporate management codex principles within internal
company policies?
Does the company, within its annual financial statements, publish its conformance with the
principles of corporate management, in accordance with the principle of "use or explain"?
At decision-making, does the company take into consideration interests of all shareholders,
in accordance with the corporate management codex principles?
YES
YES
YES
YES
SHAREHOLDERS AND GENERAL ASSEMBLY
Answers to this set of questions carry 30% of the entire indicator with respect to the harmonization of the company with the corporate management codex.
ExplanationQuestionQuestion
No.
Answer
YES/NO
Is the Company a part of joint shareholding with another company or companies?
(If so, explain)
Does each Company share give the right to one vote?
(if not, explain)
Does the company have the same approach toward, and offer the same conditions,
to all shareholders? (If not, explain)
Is the issuing of authorisation (proxy) for voting at the General Assembly fully simplified
and void of strict formalistic conditions? (If not, explain)
Did the Company ensure (free of charge) proxies for shareholders who could not, for any
reason, vote at the General Assembly, to vote in accordance with their instructions?
(If not, explain)
Has the Company, or the Management Board, when convening the General Assembly, set a
date for according to which it will check the position in the share register - which will be
competent for realising the right to vote in the General Assembly, in a way that this date is
before the General Assembly, but no more than six days before it? (If not, explain)
Were the minutes of the General Assembly, as well as all relevant information and
documents with explanations pertaining to the minutes published on the web pages of the
Company and accessible in the Company facilities to the shareholders from the first public
issue of the minutes? (If not, explain)
Does the decision on the dividend payout or prepayment of the dividend contain the date
on which a person who is a shareholder of the Company realizes his or her right to the
dividend payout, as well as the date and the period for said payout? (If not, explain)
Does the date of payout of dividend or prepayment of dividend fall at most 30 days after
the decision? (If not, explain)
Were any shareholders favoured during the payout/prepayment of dividend?
(If so, explain)
Have you facilitated to shareholders their participation and voting at the General Assembly
using modern communication technology means? (If not, explain)
Were there any conditions set with respect to taking part in the General Assembly or the
use of the right to vote (regardless of the law or the articles of association), such as
announcing participation beforehand, notarising authorisations/proxies, etc.? (If so, explain)
NO
The Company provided proxy forms for
taking part in the General Assembly. The forms
can be found on the Company web pages.
The Company did not pay out
dividends
The Company did not pay out
dividends
The Company did not pay out
dividends
Participation and voting by the shareholdersat the General Assembly of the Company isprescribed by the Company Articles ofAssociation
The obligation of announcing participationbeforehand is set by the Articlesof Association
YES
YES
YES
NO
YES
YES
NO
NO
NO
NO
NO
65
Has the management published publically the decisions of the General Assembly?
YES
YES
Has the management of the Company publicly issued/published information on possible
claims challenging said decisions? (If not, explain)
MANAGEMENT AND SUPERVISORY BODIES
Answers to this set of questions carry 20 % of the entire indicator with respect to the harmonization of the company with the corporate management codex.
NAME MEMBERS OF THE MANAGEMENT BOARD AND THEIR FUNCTIONS:
NAME MEMBERS OF THE SUPERVISORY BOARD AND THEIR FUNCTIONS:
ExplanationQuestionQuestion
No.
Answer
YES/NO
Has the Supervisory Board, or the Management Board, reached the decision on its operational
framework, including the list of regular meetings and information which regularly and timely
needs to be placed at the disposal to the members of the supervisory board? (If not, explain)
Did the Supervisory Board, or the Management Board, enact internal Rules of Conduct?
(If not, explain)
Is the Supervisory Board, or the non-executive directors in the Management Board, mostly
comprised of independent members? (If not, explain)
Does the Bank have a long-term succession plan? (If not, explain)
Is the compensation/bonus received by the members of the SB and the MB completely or
partly determined according to the contribution to the success of the Company? (If not, explain)
Are supervisory or management board member compensations/bonuses determined by the
decision of the General Assembly or by company by-laws? (If not, explain)
Is detailed information on all compensations and other income by the Company or persons
connected to the Company for each member of the SB or the MB, including the structure of
such compensation, published/issued publicly? (If not, explain)
Does every member of the SB or the MB inform the Company of all changes in connection
with their acquisition, waiver or the possibility of fulfilment of their voting rights over the
Company shares, by five days after such a change at the latest? (If not, explain)
Were all transactions in which the members of the SB or MB, or associated persons and the
Company and associated persons/entities participated, clearly noted in the Company reports:
(If not, explain)
Are there contracts or agreements between any member of the SB or MB and the Company?
Have they been first approved by the SB or the MB? (If not, explain)
Are important elements of such contracts or agreements contained in the annual report?
(If not, explain)
Has the SB or MB instituted a Naming Commission?
Has the SB or MB instituted an Awards Commission?
Has the SB or MB instituted an Audit Commission?
Are most Commission members independent members of the SB? (If not, explain)
Has the Commission followed the integrity of financial information of the Company, and
especially the correctness and consistency of accounting methods used by the Company and
the Group the Company belongs to, including the criteria for consolidating financial statements
of companies belonging to the Group? (If not, explain)
Has the Commission assessed the quality of the internal controls system and the risk
management system, with the goal being proper identification of main risks the Company is
exposed to (including risks tied to adherence to regulations), i.e. their proper identification,
exposure, and management? (If not, explain)
Did the Commission work on ensuring the efficiency of the internal audit system, especially
through drafting recommendations during phases of choosing, naming, repeat naming and
dismissal of internal audit managers and with respect to assets available to them, as well as
the assessment of actions undertaken by managers in view of findings and recommendations
of the internal audit? (If not, explain)
If the function of internal audit does not exist within the Company, has the Commission
made an assessment of the need to introduce it? (If not, explain)
Did the Commission monitor the independence and objectivity of the external auditor,
especially with respect to the rotation of authorised auditors within the auditors' company
and the compensation the Company is paying for their services? (If not, explain)
Has the Commission followed the nature and the quantity of services not constituting an audit,
but still being received by the Company from the auditors' or associated entities? (If not, explain)
NO
YES
YES
YES
NO
NO
NO
NO
NO
NO
YES
YES
YES
YES
YES
YES
YES
YES
YES
NO
Members of the Management Board are named
by the Supervisory Board, and approved by
the CNB
The compensation/bonus is
determined by the General Assembly
Expenses are published jointly
The Bank organised the function of
internal audit.
No such services
The Supervisory Board convenes at least once
a month and enacts decisions in its purview, in
accordance with the Articles of Association and
the Rules of Conduct of the Supervisory Board
66
Has the Commission drafted such regulations on which services the auditors' and their
associates may not render to the Company, which services they may render only with
previous approval by the Commission, and which services they may perform without
previous approval? (If not, explain)
Has the Commission deliberated on the efficiency of external audit and the actions of the senior
management staff with respect to the recommendations made by the external auditor? (If not, explain)
Has the Audit Commission ensured submission of high-quality information by dependant
and associated companies and third parties (such as expert advisors)? (If not, explain)
Was the documentation relevant for the operation of the SB or MB submitted on time to all
members? (If not, explain)
Were all decisions and voting results noted in the SB/MB meeting minutes? (If not, explain)
Has the SB/MB drafted the evaluation of its performance in the previous period, including
assessment of contribution and competence of each individual member, as well as the joint
performance of the Commission, assessment of performances of SB-established commissions,
and the assessment of goals met with respect to those set by the Company?
Has the Company published the statement on the policy of management and SB, MB and
Management awards as a part of the annual report? (If not, explain)
Is the Statement on the SB/MB/Management awarding policy constantly present on the web
pages of the Company? (If not, explain)
Is detailed information on all salaries and compensations for each member of the
Management or executive directors publicly declared in the annual report? (If not, explain)
Are all forms of awards to the members of the management or the SB, including options and
other benefits publicly declared (in detail by entry and person) in the annual report?
(If not, explain)
Were all transactions in which the members of the SB or MB, or associated persons and the
Company or associated persons/entities participated, clearly noted in the Company reports:
(If not, explain)
Does the report which the Supervisory Board or the Management Board submits to the
General Assembly contain (along with the legally prescribed report), the assessment of total
business success of the Company (read: the Bank), activities of the Company management,
and special cooperation of the Board with the management? (If not, explain)
NO
YES
YES
YES
YES
NO
NO
NO
NO
NO
YES
YES
This is regulated through legal
provisions. External auditor performs
auditing services only.
Awarding is defined through
employment contracts.
Expenses are published jointly
Expenses are published jointly
AUDIT AND INTERNAL CONTROL MECHANISMS
Answers to this set of questions carry 10% of the entire indicator with respect to the harmonization of the company with the corporate management codex.
BUSINESS TRANSPARENCY AND PUBLIC APPEARANCE
Answers to this set of questions carry 20% of the entire indicator with respect to the harmonization of the company with the corporate management codex.
ExplanationQuestionQuestion
No.
Answer
YES/NO
ExplanationQuestionQuestion
No.
Answer
YES/NO
Does the Company have its external auditing company?
Is the external auditor connected to the Company in ownership or interest?
Does the external auditor offer other services to the Company, whether by itself or through
associated entities?
Has the company publicly declared the amounts of compensation paid out to external
auditors for services of audit and other services rendered? (If not, explain)
Does the Company have internal auditors and an integrated system of internal control?
(If not, explain)
Are semi-annual, annual and quarterly reports available to shareholders?
Has the Company drafted a calendar of important events?
Has the Company introduced mechanism whereby persons who handle or come into
contact with eyes-only (privileged) information have the nature and significance of that
information explained to them, including limitations?
Has the Company introduced mechanisms ensuring oversight over the flow of privileged
information and possible misuse of the same?
Did anyone suffer negative consequences because he/she pointed out to the competent
bodies within the Company or outside the Company any insufficiencies in the application
of regulations or ethical norms within the Company? (If so, explain)
Did the Company have any meetings during the previous year with interested investors?
Are all members of the Management, the SB and the MB in agreement that the answers to
the questions in this questionnaire, to their best knowledge, completely true?
YES
NO
NO
NO
YES
The external auditor provided only
the services of audit, in accordance
with the conditions of their business.
YES
NO
YES
YES
NO
NO
YES
ORG
AN
IZA
TIO
NA
L D
IAG
RA
M
GEN
ERAL
ASS
ENBL
Y
SUPE
RVIS
ORY
BOAR
D
MAN
AGEM
ENT
AUD
IT B
ORD
INTE
RNAL
AUD
IT
CRE
DIT
BO
ARD
SOLV
ENC
YBO
ARD
INFO
RMAT
ION
SYST
EMM
ANAG
MEN
T BO
ARD
INFO
RMAT
ION
SYST
EM S
AFET
Y
RISK
CO
NTRO
LAN
D M
ANAG
MEN
T BO
ARD
INTE
RNAL
CON
TROL
AND
PREV
ENTIO
NOF
MON
EY LA
OUND
ERIN
G AN
DTE
RROR
ISM FI
NANC
ING
MAR
KETIN
G D
EPAR
TMEN
T
RISK
MAN
AGEM
ENT D
EPAR
TMEN
T
RISK
PLA
CEM
ENTS
CO
LLEC
TIO
NAN
D C
OLL
ECTI
ON
MO
NITO
RIN
GDE
PART
MEN
T
TREA
SURY
AN
DSO
LVEN
CY
SEC
TOR
PAYM
ENT
TRA
NSA
CTI
ON
S SE
CT O
RBU
SIN
ESS
SUPO
RT S
ECTO
RA
CC
OU
NT
SEC
TOR
LEG
AL
AN
D G
ENER
AL
AD
MIN
ISTR
ATIO
NSE
CTO
R
Sect
or M
anag
men
t
Trea
sury
dep
artm
ent
Solv
ency
Dep
artm
ent
Sect
or M
anag
men
tSe
ctor
Man
agm
ent
Sect
or M
anag
erSe
ctor
Man
ager
Sect
or M
anag
er
Sect
or C
ontro
lD
epar
tmen
t
Bloc
kage
, Man
date
and
Treas
ury D
epar
tmen
t
Paym
ent T
rans
actio
nD
epar
tmen
t
Sect
or C
ontro
lD
epar
tmen
t
Cre
dit a
nd G
uara
ntee
Busin
ess
Supp
ort D
epar
tmen
t
Dep
osits
and
Cre
dtit
Car
dTr
ansa
ctio
ns B
usin
ess
Supo
rtD
epar
tmen
t
Lega
l and
Per
sonn
elD
epar
tmen
t
Gen
eral
Adm
inis
tratio
nD
epar
tmen
t
Acco
unt,
Anal
ysis
i and
Repo
rting
Dep
artm
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Cle
arin
g D
epar
tmen
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Syst
em S
uppo
rtD
epar
tmen
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Clie
nt S
uppo
rtD
epar
tmen
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67
IT S
ECTO
RC
RED
ITS
AN
DG
UA
RAN
TIES
SEC
TOR
Sect
or M
anag
er
Reta
il and
Bus
iness
Cred
its S
ecto
r
ZAG
REB
FIN
ANC
IAL
CEN
TRE
OSI
JEK
FIN
ANC
IAL
CEN
TRE
RIJE
KAFI
NAN
CIA
L C
ENTR
E
BAN
K BR
ANC
HES
CONTACTS
SUPERVISORY BOARD
CHAIRWOMAN OF THE MANAGEMENTBOARD
BORD MEMBER
BOARD MEMBER
IZVRŠNI DIREKTORU SEKTORU PODRŠKE POSLOVANJU
LOANS AND GUARANTEESSECTOR MANAGER
BUSINESS SUPPORTSECTOR MANAGER
TRANSACTIONSSECTOR MANAGER
Mrs. Ružica Vađić, ChairwomanMrs. Blaženka Eror Matić - MemberMr. Hrvoje Markovinović - MemberMr. Denis Smolar - MemberMr. Tomislav Rosandić - Member
Angelina Horvat, B.Sc. (Econ.)V.Nazora 2, SlatinaTel: 033/840-400, 840-401Fax: 033/551-566E-mail: ahorvat slatinska-banka.hr
Marko Krajina, B.Sc. (Econ.)V.Nazora 2, SlatinaTel: 033/840-400, 01/455-0397fax: 033/551-566 , 01/461-4714E-mail: mkrajina slatinska-banka.hr
Marko Brnić dipl.oec.V.Nazora 2, SlatinaTel: 033/840-400, 01/455-0397fax: 033/551-566 , 01/461-4714E-mail: mbrnić slatinska-banka.hr
Elvis Mališ, B.Sc. (Econ.)V.Nazora 2, SlatinaTel: 033/840-400, 840-401fax: 033/551-566E-mail: emalis slatinska-banka.hr
Mr. sc.Tina ŽivkovićV.Nazora 2, SlatinaTel: 033/840-421fax: 033/840-429E-mail: tzivkovic slatinska-banka.hr
Natalina Zdjelarević, B.Sc. (Econ.)V.Nazora 2, SlatinaTel: 033/840-440fax: 033/551-566E-mail: nzdjelarevic slatinska-banka.hr
Snježana Pačarić, B.Sc. (Econ.)V.Nazora 2, SlatinaTel: 033/840-430Fax: 033/551-566E-mail: spacaric slatinska-banka.hr
@
@
@
@
@
@
@
68
KONTAKTI
TREASURY AND SOLVENCYSECTOR MANAGER
ACCOUNTINGSECTOR MANAGER
LEGAL AND ADMINISTRATIVESECTOR MANAGER
IT SECTOR MANAGER
Manuela Kolarić, M.Sc. (Econ.)V.Nazora 2, SlatinaTel: 033/840-438Fax: 033/551-566E-mail: mkolaric slatinska-banka.hr
Gordana Potočki, B.Sc.V.Nazora 2, SlatinaTel: 033/840-451Fax: 033/551-566E-mail: gpotocki slatinska-banka.hr
Nada Samardžić, LLB.V.Nazora 2, SlatinaTel: 033/840-460Fax: 033/551-566E-mail: nsamardzic slatinska-banka.hr
Dražen Brkljač, B.Sc. (Eng.)V.Nazora 2, SlatinaTel: 033/840-470Fax: 033/551-566E-mail: dbrkljac slatinska-banka.hr
@
@
@
@
69
SLATINSKA BANKA D.D. - BUSINESS NETWORK
FINANCIAL CENTRES
OSIJEK FINANCIAL CENTRE
ZAGREB FINANCIAL CENTRE
RIJEKA FINANCIAL CENTRE
BRANCHES:
SLATINA BRANCH – BANK MAIN OFFICE
DONJI MIHOLJAC BRANCH
DARUVAR
NAŠICE
KOVO
ORAHOVICA
POŽEGA
VALPOVO
VIROVITICA
PITOMAČA
KOPRIVNICA
SLAVONSKI BROD
ILOK
Županijska 13, 31000 Osijekvoditelj: Marina Penavin, tel: 031/200-
Tomašićeva 2, 10000 Zagrebvoditelj: Nataša Putak, tel: 01/46-14-706
Jelačićev trg 1, 51000 Rijekavoditelj: Vedran Draženović, tel: 051/332-183
V.Nazora 2, 33520 Slatinavoditelj: Marina Koleno, tel: 033/840-411
Vukovarska 4, 31540 D.Miholjacvoditelj: v.d. Juraj Nerovčić tel: 031/631-221
Kralja Tomislava 22, 43500 Daruvarvoditelj: Jasminka Ajdić, tel: 043/331-469
Trg Izidora Kršnjavija 3, 31500 Našicevoditelj: Sanja Kapraljević, tel: 031/617-506
Stjepana Radića 9, 31400 akovovoditelj: Ivan Pološki, tel: 031/811-977
Kralja Zvonimira 14, 33515 Orahovicavoditelj: Juraj Nerovčić, tel: 033/674-002
Kamenita vrata 4, 34000 Požegavoditelj: Ivan Renka, tel: 034/271-279
Trg kralja Tomislava bb, 31550 Valpovovoditelj: Ignjo Ivanović, tel: 031/650-450
Trg kralja Tomislava 6, 33000 Viroviticavoditelj: Ksenija Stanić, tel: 033/ 722-790
Trg kralja Tomislava bb, 33405 Pitomačavoditelj: Neven Bedeković, tel: 033/783-950
Dr. Željka Selingera 2a, Koprivnicavoditelj: Predrag Marković, tel: 048/621-451
Matije Gupca 39, 35000 Slavonski Brodvoditelj: Filip Tolić tel: 035/400-
Trg žrtava domov. Rata 1, 32236 Ilokvoditelj: v.d Marina Penavin, tel:032/590-252
BRANCH
BRANCH
BRANCH
BRANCH
BRANCH
BRANCH
BRANCH
BRANCH
BRANCH
BRANCH
BRANCH
\A\
BRANCH OFFICES:
ČAČINCI BRANCH OFFICE
BRIBIR
VIŠKOVO
NOVA KAPELA
SUHOPOLJE
ČA AVICA
KUTJEVO
PLETERNICA
NOVA BUKOVICA
KAPTOL
MIKLEUŠ
MOLVE
Trg dr. F. Tuđmana 1, 33514 Čačincitel: 033/400-999
Bribir 10, Bribir 51253 Bribirt el: 051/284-164
Vozišće 1, 51216 Viškovotel: 051/503-756
Kralja Tomislava 13, 35410 Nova Kapelatel: 035/385-023
Trg Sv. Terezije 10,33410 Suhopoljetel: 033/ 801-106
Zagrebačka 11, 33523 Čađavicatel: 033/544-232
Trg Graševine 2, 34340 Kutjevotel:034/315-076
Trg Z. Frankopana 10, 34310 Platernicatel: 034/251-829
Zagrebačka 2, 33518 Nova Bukovicatel:033/564-101
Trg Vilima Korajca 15, 34334 Kaptoltel:034/231-175
Ivana pl. Zajca bb, 33517 Mikleuštel: 033/563-020
Trg Kralja tomislava 31, 48327 Molvetel: 048/625-453
BRANCH OFFICE
BRANCH OFFICE
BRANCH OFFICE
BRANCH OFFICE
BRANCH OFFICE
BRANCH OFFICE
BRANCH OFFICE
BRANCH OFFICE
BRANCH OFFICE
BRANCH OFFICE
BRANCH OFFICE
\
70
CORRESPONDENT BANKS
CORRESPONDENT BANK
UNICREDIT BANK AUSTRIA AG, VIENNA
ZVEZA BANK RZZOJ,
KLAGENFURT
DEUTSCHE BANK TRUST COMPANY AMERICAS,
NEW YORK
DEUTSCHE BANK AG
FRANKFURT AM MAIN
BAYERISCHE LANDESBANK,
MUNCHEN
INTESA SANPAOLO SPA,
MILAN
BANCA POPOLARE DI CIVIDALE SOCIETA COOPERATIVE PER AZIONI,
CIVIDALE DEL FRIULI
BANCA ANTONVENETA SPA,
PADOVA
SVENSKA
HANDELSBANKEN AB(PUBL),
STOCKHOLM
CREDIT SUISSE,
ZURICH
KBC BANK NV
BRUSSELS
STATE
AUSTRIJA
SAD
NJEMAČKA
ITALIJA
ŠVEDSKA
ŠVICARSKA
BELGIJA
71