SERBIAN BANKING & FINANCIAL SECTOR 2009
CONTENTS 6. Radovan Jelašić Governor of the National Bank of Serbia (NBS) Sobering year
54. International Financing: EBRD New investments
56. BANKRUPTCIES 8. Slobodan Ilić State Secretary within the Serbian Finance Ministry Trusting banks to fight the crisis
ONLY THE STATE TO GAIN
58. Nebojša Divljan
Banks in Serbia are liquid
Management Board Chairman and CEO of Delta Generali Osiguranje Insurance withstanding the crisis
16. Veroljub Dugalić
60. INSURANCE
Secretary General of the Association of Serbian Banks
Market resisting the crisis
11. Overview
64. Gordana Dostanić 19. Bank’s Data 36. Vojvodjanska banka
Director of the Belgrade Stock Exchange - Falling trade
38. Draginja Đurić
68. LEASING
President of Banca Intesa’s Executive Board
Four leading players
ART DIRECTOR Tamara Ivljanin, t.ivljanin@cma.rs
40. Slavko Carić
Secondary investment
EDITORIAL CONTRIBUTORS Aleksandra Petrović, Zorica Mišić, Marica Vuković, Ana Stojanović
Executive Board Chairman of Erste Bank - Excellent business results
72. Pension Funds
MANAGING DIRECTOR AND EDITOR IN CHIEF Tatjana Ostojić, t.ostojic@cma.rs EDITORIAL ASSISTANT Mark R. Pullen
PHOTO Slobodan Jotić
70. INVESTMENT FUNDS
42. NLB Banka
TRANSLATORS Snežana Bjelotomić PROJECT MANAGER Marija Urošević m.urosevic@cma.rs SALES EXECUTIVE Biljana Jocović, b.jocic@cma.rs GENERAL MANAGER Ivan Novčić, i.novcic@cma.rs FINANCIAL DIRECTOR Ana Besedić, a.besedic@cma.rs PRINTING Rotografika d.o.o. Segedinski put 72, Subotica THE GUIDE TO THE SERBIAN BANKING AND FINANCIJAL SECTOR 2009 published by: alliance international media Knjeginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27 E-mail: office@allianceinternationalmedia.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2009
Long-term patience
UNIVERSAL PLAYER
74. Representative Offices
44. Milan Stefanovic
Procedures – REPRESENTATIVE OFFICES
President of the Executive Board JUBMES - RECORD NET PROFIT
47. Privredna banka Beograd THE YEAR OF DEVELOPMENT AND MODERNISATION
76. DIRECTORY Banks Authorized to Perform International Operations as of 7th April 2009 Representative Offices of Foreign Banks in Serbia as of 23rd March 2009 Insurance companies
48. Surveys 78. DIRECTORY
GfK surveys banking client sentiments - Popularity assessed - Serbian Banking Market Overview
Investment funds Leasing companies
52. Surveys
VPF Management Companies
79. DIRECTORY This issue is audited by
Never again?
ABC Serbia
80. DIRECTORY Brokers
4 Guide to Serbian Banking Sector / May 2009
“The global economic crisis is already affecting banks’ operations, so the expansive development of the past is certainly on the decline, thus leading to reduced growth of balance assets. The network of banks in Serbia is gradually shrinking, while bank margins have also been reduced. I really do hope, though, that this crisis will have some positive effects too. After the National Bank of Serbia spent so much time persuading banks, coupled with the fact that risks are now higher, we do hope that banks will finally turn to the dinar and abandon so-called ‘risky currencies’, such as the Swiss franc. This entails that banks work harder on trying to draw in dinar deposits as the only no-risk source of financing dinar loans. In the coming years this crisis is probably going to demonstrate that: banks’ ratings on the Serbian market will change depending on which of them has a stable long-term base of financing sources, as well as bearing in mind the higher exposure to risk in central and eastern Europe”, said Radovan Jelašić, Governor of the National Bank of Serbia (NBS).
MEASURES
75. BANK’S CORE DATA OWNERSHIP STRUCTURE AND FINANCIAL REPORTS
46. REGULATIONS Banking System - EXTERNAL BANKING OPERATIONS
ECONOMIC CRISIS AND BANKS
“The Finance Ministry prepares all sorts of measures, primarily those of a fiscal nature, aimed at maintaining macroeconomic stability. This is certainly beneficial for the banking sector too. In that respect, the following has been included in the 2009 budget review, which is due to be discussed in the following week: the government’s plan to preserve Serbia’s macroeconomic stability; the arrangement with the IMF and reaching an agreement with foreign banks in Vienna – the biggest creditors of domestic banks and the real sector – about reprogramming current claims. All of this is going to help the banking and real sectors in Serbia to come through the crisis as unscathed as possible”, said Slobodan Ilić, State Secretary within the Serbian Finance Ministry.
INTERVIEW RADOVAN JELAŠIĆ, GOVERNOR OF THE NATIONAL BANK OF SERBIA (NBS)
Sobering year
“Maintaining macro-economic stability is the best way for Serbia to continue to be an interesting location for foreign investments.”
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uring the last few years, the Serbian banking system has gained recognition as one of the best regulated systems in the region. Here we speak to Radovan Jelašić, Governor of Serbia’s central bank, the National Bank of Serbia (NBS), about the extent the economic crisis is impacting on the Serbian banking sector and the direction the banking system will take in the next year.
FOREIGN BANKS
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t’s true that foreign banks’ interest in coming here has reduced quite a lot, not only in Serbia, but in the region too. However, this doesn’t mean that there is a complete lack of interest. Since the stock exchange value of certain banks has gone down, I can only say that now is the right time to come to the Serbian banking market, provided one meets the criteria determined by the NBS. In future, I believe it’s highly unlikely that the value of banks, expressed in absolute numbers, will go down to the extent that they have during these past six months. 6 Guide to Serbian Banking Sector / May 2009
In your opinion, how much will the global economic crisis affect banking operations in Serbia? The global economic crisis is already affecting banks’ operations and the expansive development of the past is certainly on the decline, thus leading to reduced growth of balance assets. The network of banks in Serbia is gradually shrinking, while bank margins have also been reduced. I really do hope, though, that this crisis will have some positive effects too. After the National Bank of Serbia spent so much time persuading banks, coupled with the fact that risks are now higher, we do hope that banks will finally turn to the dinar and abandon so-called ‘risky currencies’, such as the Swiss franc. This entails banks working harder on trying to draw in dinar deposits as the only no-risk source of financing dinar loans. In the coming years this crisis is probably going to demonstrate that banks’ ratings on the Serbian market will change depending on which of them has a stable long-term base of financing sources, particularly bearing in mind the higher exposure to risk in central and eastern Europe. The last few years have seen much talk about further consolidation of the banking sector. Will this also happen in Serbia as a result of the global economic crisis? The state will definitely work in favour of consolidating its ownership share in banks and the NBS will direct banks towards stronger capital bases, which will certainly lead to mergers in the banking sector. There will be less to do and credit activity will decline, thus leading to the overall consolidation of the banking sector. In your opinion, how much will this situation effect the trust that citizens have in the Serbian banking system, bearing in mind that the IMF considers maintaining public trust a crucial element? Everybody who is familiar with the performances of Serbia’s banking sector knows that this sector is liquid and solvent and, subsequently, has received praise from the International Monetary Fund, the World Bank and other international financial institutions.
However, if we are talking about trust, the biggest challenge is overcoming the difficult past. There are some who still think that history will repeat itself and such sentiments in Serbia are wholeheartedly backed by certain media companies. What is positive about Serbia’s arrangement with the IMF? I would certainly like to commend the Serbian Government for being well aware of the economic challenges that await us and going ahead with the new IMF arrangement, despite the fact that it demands certain difficult and unpopular measures be applied. At the same time, it is extremely important to maintain the three per cent deficit in GDP, mainly by cutting back on expenses and exercising other anti-inflationary measures, which would satisfy realistic preconditions for maintaining price stability under such circumstances. The IMF arrangement is a guarantee that Serbia is exercising a responsible economic policy and this arrangement will lead to other international financial institutions granting funds which, in turn, is a key prerequisite for the support provided by commercial banks. This is very important, since banks operating in Serbia have extensive claims from companies in Serbia, whether directly or through cross-border loans. In 2009, four billion Euros of this debt has to be repaid. The IMF has demonstrated that it believes in the Government’s economic policy by granting Serbia three billion Euros. This guarantee of macroeconomic stability sends a positive message to commercial banks too, encouraging them not to reduce their exposure to Serbia and our economy and to continue providing essential financial assistance. How would you rate banks’ operations in Serbia last year? Last year was one of the most profitable years since we began calculating success in absolute numbers, though the yield on invested capital is close to ten per cent, which is not so special compared to neighbouring countries. Today, last year’s profit is nothing worth celebrating, as everybody is busy alleviating the affects that the global economic crisis has had on their businesses. The NBS has been warning citizens not to take out too many loans for years now. Nevertheless, media report year-on-year growth in the number of granted loans. How do you explain this? The loan portfolio of banks in Serbia is about the same as during the first few transitional years, but now, for the first time, we
Last year was one of the most profitable years since we began calculating success in absolute numbers are recording a drop in loan activity. Since a large portion of loan portfolios have been denominated in Euros, one should bear in mind that the foreign currency exchange has been significantly increasing or reducing these loan portfolios. Moreover, banks have introduced stricter conditions for granting loans and the debtors, i.e. the citizens, have become more cautious and less prone to taking out loans because of the growing uncertainty and expense of loans. Many of the participants of the recent Kopaonik business forum insisted that a stable exchange rate was very important for the economy. However, in your interview for us last year you said that predicting the exchange rate was mission impossible. What is your opinion today? My opinion hasn’t changed from last year or the year before that. Both the Government and the NBS are doing everything to keep the exchange rate stable, hence the arrangement with the IMF. This doesn’t mean that there
won’t be fluctuations, but the market will continue to function without major interruptions and Euros will be exchanged into dinars and vice versa. This is what the institution of the NBS is in charge of: leading the exchange rate and foreign currency regime policy and standing behind it. Last year you said it was important, even essential, for Serbia to attract more foreign direct investments. Today, though, we are quite sure that these investments will not be made to the extent that was initially anticipated. First of all, less doesn’t mean nothing. This is why we concluded the arrangement with the IMF and reached an agreement with the creditors, i.e. foreign banks, that no funds will be withdrawn. We did this in order to maintain macroeconomic stability during a period of less FDI. Maintaining macroeconomic stability is the best way for Serbia to continue to be an interesting location for foreign investments. Guide to Serbian Banking Sector / May 2009 7
INTERVIEW SLOBODAN ILIĆ, STATE SECRETARY WITHIN THE SERBIAN FINANCE MINISTRY
Trusting banks to fight the crisis “It’s highly unlikely that the banking sector will record growth in 2009, with the outlook being that profitability indicators will decline compared to last year.”
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ere we speak to State Secretary within the Finance Ministry, Slobodan Ilić, about the government’s view of the world’s economic situation and the affects that the global economic downturn is having, primarily on banks in Serbia. The Serbian banking sector has thus far been widely regarded as the most well regulated sector in the country. How much do 8 Guide to Serbian Banking Sector / May 2009
you think the global economic crisis is affecting, or will affect, the everyday operations of banks in Serbia? One of the consequences of the restrictive monetary policy exercised in Serbia is that our banking system is in a better position than those of most countries in the region, though, of course, even our banks are not spared the negative affects of the global economic crisis. One of the crisis’s consequences relates to the creditworthiness of our companies. Serbian
companies are highly indebted, both with domestic and foreign banks (through so-called cross-border loans), so any significant reduction in demand for their products and services could lead to lower revenues and, in turn, reduce their capacity to repay loans. As such, it is quite possible that the credit portfolios of those banks that have had quite an aggressive loan policy will be burdened by a higher number of troublesome loans. We can expect banks to become far more cautious in the fu-
ture when it comes to granting loans and that they will try to minimise or completely avoid risky placements. All in all, it’s highly unlikely that the banking sector will record growth in 2009, with the outlook being that profitability indicators will decline compared to last year. What special measures is the Finance Ministry preparing? The Finance Ministry prepares all sorts of measures, primarily those of a fiscal nature, aimed at maintaining macroeconomic stability. This is certainly beneficial for the banking sector too. In that respect, the following has been included in the 2009 budget review, which is due to be discussed in the following week: the government’s plan to preserve Serbia’s macroeconomic stability; the arrangement with the IMF and reaching an agreement with foreign banks in Vienna – the biggest creditors of domestic banks and the real sector – about reprogramming current claims. All of this is going to help Serbia’s banking and real sectors come through the crisis as unscathed as possible. The IMF is insisting on preserving citizens’ confidence in banks. In your opinion, how much do Serbia’s citizens actually trust commercial banks? There are two ‘devils’ lurking in the financial industry that could completely destroy it. The first one is mistrust and the other is illiquidity. It’s impossible to say which is worse! Following the outbreak of the global crisis, mistrust emerged with full force and has had a prevailing affect in generating the second problem of illiquidity. Unfortunately, in our country – where people still have bad memories of the banking sector from the 1990s and the savings they irretrievably lost – a lot of people withdrew their foreign currency savings from banks in response to irresponsible statements made by certain politicians. Fortunately, the relevant institutions – the Finance Ministry, the National Bank of Serbia, the Serbian Banks Association and, primarily, the banks themselves – reacted in a responsible manner that alleviated the first wave of problems.
Serbia, as a country whose economic and financial system is part of the global system, will share the fate of the rest of the world Despite a poor fourth quarter of ‘08, banks in Serbia have been successful. What do you think of their operations in 2008 and what is expected this year? There is no doubt that last year will be remembered globally as the most difficult financial year since the Second World War. Unfortunately, forecasts show that this year will be even tougher. Serbia, as a country whose economic and financial system is part of the global system, will share the fate of the rest of the world. This is especially applicable to the financial sector, which is largely included in global tendencies via banks that have headquarters abroad. However, the results achieved by the Serbian banking sector in 2008 show that banks’ shareholders have
CENTRAL BANK MEASURES
T
he financial measures devised and presented by the National Bank of Serbia (NBS) are aimed at neutralising all the negative affects of the global economic crisis on Serbia, especially when it comes to the country’s banking sector. As of October last year, the NBS adopted four sets of measures directed at improving liquidity and reducing expenses associated with financing sources. For now, we can say that these measures are yielding results. In co-operation with all relevant financial institutions – such as the Finance Ministry, the Deposit Insurance Agency and the Serbian Banks Association – the NBS is doing its utmost to maintain stability and secure the future of the banking system in Serbia.
plenty of reason to be satisfied in terms of profits. I would especially like to point out that the Serbian banking sector is highly liquid, with close to 30 per cent of liquid assets; twice as high as deposits. Capital adequacy is 23 per cent – almost twice the required minimum of 12 per cent and almost three times higher than the European average of eight per cent. The share capital makes up a total of 80 per cent of the total capital. Data generated at the end of 2008 shows that the banking sector is profitable, with a capital yield of around 11 per cent and a yield on assets close to 2.5%. What is worrying is a drop in the value of banks’ shares during the first few months of 2009, which is not a result of their operations but rather the fact that foreign investors are withdrawing funds from the domestic capital market or are not present in sufficient numbers. Another problem that the banking sector has to face in 2009 is the issue of sufficient demand for liquidity and investment loans. The latter are in particular jeopardy, since there probably won’t be enough of those clients interested in an investment loan, despite them being creditworthy. Nobody knows whether the crisis will subside in, say, five years time or how is it going to affect a company that took out such a loan. Guide to Serbian Banking Sector / May 2009 9
INTERVIEW RETURN OF SAVINGS DEPOSITS
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he latest data shows that people are starting to deposit their savings in banks again, which means that trust in banks has been restored. This gives us even more impetus to fight the negative affects of the global economic crisis.
particular, there are two likely scenarios. The first relates to banks in which the state is the holder of a controlling interest. In the case of these four banks, one of the alternative solutions still being reviewed is to merge all four of them or just some of them into one bank prior to their privatisation. This option is justified by the negative affects of the global economic crisis in Serbia, more difficult access to capital and the increasing competition that banks are facing. If we are talking about private banks, the signals being sent by the market show pretty clearly that certain banks are interested in acquiring some domestic banks.
The Serbian banking sector is highly liquid, with close to 30 per cent of liquid assets; twice as high as deposits A lot has been said in the recent past about the consolidation of the banking sector in Serbia. Do you think this will be another consequence of this crisis? I wouldn’t be saying anything new if I said that many factors and relations on the global economic and financial level won’t be the same as before the crisis. The banking sector should not be a bystander when it comes to global and 10 Guide to Serbian Banking Sector / May 2009
national tendencies. There is no doubt that the consolidation of banks is going to be one of the consequences of the current crisis. There are several reasons for this and I would just like to mention the need for banks to consolidate and alleviate problems caused by bad business moves, as well as improving their competitive market position in an increasingly difficult global game. With regard to Serbia in
Is there any indication that foreign banks are planning to withdraw from Serbia in the coming period? Recent analysis carried out by the Wall Street Journal shows that Western banks have invested over US$1,700 billion in Eastern Europe, which has led to the constant growth of demand in these countries, with the aforementioned placements being the main generator of economic growth and the rising living standard of their citizens. ome agencies have emerged with really bleak outlooks concerning the affects of the global economic crisis on the banking sector in certain Eastern European countries. According to those outlooks, increased macroeconomic imbalances could lead to the depreciation of national currencies which, in turn, will lead to local companies not being able to repay loans granted in foreign currencies and, as a consequence, this could cause huge losses for foreign banks operating in Eastern Europe. That said, I am an optimist and am confident that foreign banks will stay in Eastern European countries. At this moment I see no indications that foreign banks in Serbia are going to withdraw from our country. What can be expected is for their operations to be diversified in two directions: the first will be a reduction in the number of branches and employees, as a direct negative affect of the global economic crisis on Serbia’s economic and financial system; the second will pertain to the sale of their daughter banks or mergers with other banks in Serbia. This could be the result of the consolidation, in the form of mergers or takeovers, of their parent banks abroad.
OVERVIEW: BANKS
BANKS IN SERBIA
ARE LIQUID
Serbia’s banking sector is liquid, though it was the country’s first sector to be hit by the global economic crisis as a result of the tremors and losses sustained by banks in Europe and the U.S. By Aleksandra PETROVIĆ
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he first knock-on effects of the global financial crisis in Serbia became apparent when people began withdrawing their deposits from banks. However, second to the psychological effect that was the principal reason for the withdrawals, another important factor leading to reduced long-term credit financing by banks was limited access to long-term funding on the global capital market. Last year bankers tried in vain to explain that banks in Serbia are highly liquid, while being targeted by anxious citizens. They argued that the capital adequacy is twice the required minimum and highlighted that the banking sector is principally based on trust and, thus, unfounded provocations of fear and panic among citizens could have unforeseen consequences. The loss of public trust is the most dangerous knock-on affect of the global financial crisis in Serbia. In addition to the direct result of people frantically withdrawing savings from banks, bankers also warned that it was certain there would be reduced inflow of FDI and loans would become more expensive. CENTRAL BANK MEASURES The banking sector faced a great challenge last October when some depositors – who’d learnt their lesson in the pyramid banking schemes of Serbia in the 1990s – decided to withdraw their deposits from banks. Estimates show that during September and October last year a total of a billion euros worth of savings was withdrawn 12 Guide to Serbian Banking Sector / May 2009
ITALIAN BANKS LEAD
O
ne of the features of the Serbian financial sector is the predominance of foreign-owned banks: an average of 80 per cent. Banks with foreign ownership participate with 75 per cent of the mark, those with state capital control 15 per cent, while privately-owned domestic banks make up 10 per cent. Of the foreign banks in Serbia, those from Italy top the list with 19 per cent, followed by Greek banks (17per cent), Austrian banks (16per cent) and German banks (11per cent). from Serbian banks by local savers. “The illiquidity problems felt by banks’ headquarters inspired a spill-over of reputation risk in the whole region, including Serbia, which led to a certain number of depositors deciding to withdraw their foreign currency savings from banks. This was the first test for the stability of the banking sector and it was successfully passed,” says Mira Erić-Jović, Vice Governor of the National Bank of Serbia (NBS), adding that since the beginning of the crisis the Serbian banking sector has shown that deposits cover a total of 86 per cent of foreign currency reserves, while in the region that percentage was 35 per cent in the same period, despite the NBS being criticized for its high foreign currency reserves policy. In order to alleviate the effects of the global financial crisis, the Serbian Government and NBS devised a series of measures last October. The first, directed towards restoring trust in the Serbian banking system, was to increase the state’s guarantees on savings from €3,000 to €50,000 per deposit in cases such as a bank declaring bankruptcy. This guarantee encompassed 90 per cent of retail deposits in the country, with SMEs also being subsequently included. With this move the government calmed the citizens of Serbia, while eliminating the fear brought on by a series of psychological factors. This move, by the way, was suggested by the European Commission. The NBS also decided that required foreign currency reserves would no longer be compulsory in cases of money acquired abroad as of 1st October 2008 for loans taken abroad (required reserve was 45 per cent), foreign subordinated capital (required reserves 20 per cent) and corporate loans for financial leasing (20 per cent). The second measure devised by the
The average loan indebtedness of a Serbian citizen in 2008 was €570 per capita, which is the lowest level of indebtedness in the region. NBS pertains to the structure of the required reserve, which was altered from the current model of 90 per cent of reserves in foreign currency and 10 per cent in dinars, to 80 per cent in foreign currency and 20 per cent in dinars. Moreover, the interest in arrears on the difference between the calculated amount and an average daily amount of the required reserve in foreign
currency and dinars was reduced – from the previous 31.75% to 23.63% for dinars; from 31.75% to a quarterly EURIBOR plus 10 per cent for foreign currency. The fourth measure relates to the height of the required reserves in the period from 18th October to 17th November, which was no longer based on an average September deposits but rather average deGuide to Serbian Banking Sector / May 2009 13
OVERVIEW: BANKS NBS
...’small players’ on the banking scene will vanish in the following two to three years, due to increased competition and the pronounced crisis posits as recorded on 15th October. Following the increase in deposits guaranteed by the state, the Government of Serbia also decided to temporarily abolish income tax on foreign currency savings, which became valid on 1st January 2009 and had been 20 per cent. This tax will be reinstated in 2010, but will only amount to 10 per cent. SERBS LEAST INDEBTED According to data compiled by the NBS, during the first ten months of last year the Serbian banking sector had pretax profit of over €440 million, which is €130 million more than in the whole of 2007. Nine banks suffered losses, while 26 banks had positive financial results. The cumulative capital of banks in Serbia reached a total of €5.47 billion, which is €1.17 billion more than at the end of 2007. Of this amount, shares and other capital make up €4.31 billion. 14 Guide to Serbian Banking Sector / May 2009
At the end of September 2008, the network of banks in Serbia consisted of 2,630 branch offices and bank counters, as well as agencies and exchange offices. The domestic banking sector employed a total of 32,010 people, which is 679 more than at the end of the second quarter of 2007. Eight banks reduced their number of employees (with OTP Bank taking first place after laying off 35 employees), while 27 banks increased their
number of employees (Alpha Bank takes first place in this category after hiring 131 new employees, followed by KBC Bank (76 new staff) and ProCredit Bank (66 new staff)). The banking sector’s balance assets amounted to around €22 billion at the end of September last year, which is about €849 million higher than in the second quarter of 2008. Ten banks have a 68.7% share of the total balance assets, while five banks have a 45.2% share. v Granted loans in the third quarter of 2008 amounted to a total value of €850 million, which marks growth of 7.5%. When it comes to banking divisions, corporate loans – a key activity in the third quarter of 2008 – take the number one spot with 62.4%, while retail loans
EUROPE RAISES GUARANTEED DEPOSIT LEVELS
N
eighbouring governments and those of the home countries of many of the founders of banks in Serbia have also raised their level of guaranteed bank deposits. In the case of Austria, this level had been set at a level of €20,000, but it is now unlimited. Bulgaria also had a level of €20,000 until it increased the level to €50,000 as of October 2008. Greece had the same limit, but now the guarantee on retail deposits is €100,000 for the next three years. Slovenia has also introduced guarantees for unlimited deposits as long as the financial crisis lasts, while Hungary has increased the amount of guaranteed deposits from €22,800 to €49,400.
Estimates show that during September and October last year a total of a billion euros worth of savings was withdrawn from Serbian banks by local savers comprised 34 per cent. The average loan indebtedness of a Serbian citizen in 2008 was €570 per capita, which is the lowest level of indebtedness in the region. Retail indebtedness increased 8.6% last year, reaching €4.3 billion, while indebtedness expressed in dinars was 380.7 billion dinars (around €4.98 billion), which marks a 29 per cent increase. Cash loans (granted in dinars) grew by 11.4% in 2008, while in December alone this growth was 16.2%. At the end of the year, the total value of granted loans amounted to 142.1 billion dinars (or around €1.86 billion). “If we look at the structure of granted loans during last year, it is quite evident that housing loans were the most dominant, with around €2.23 billion and annual growth of 66.5%. However, in December the number of these loans granted went down by 3.5%,” says Veroljub Dugalić, Secretary General of the Serbian Banks’ Association. According to Dugalić, during December last year people mostly applied for cash loans to repay housing mortgages before the expiry of the repayment period, since they were worried about interest rates and instalments becoming higher. “In 2008, agriculture loans recorded the biggest growth – 160.2% – and reached a total of €268 million. However, the starting figures for these loans were quite low and they don’t have an important effect on retail indebtedness figures. The number of consumer loans granted last year dropped by 12.9%, with the total value of granted loans at €277 million. This represented growth of 1.9% in December,” Dugalić adds. SMALLER BANKS TO DISAPPEAR Bankers warn that banks’ profitability will be reduced in Serbia this year. The situation has altered significantly compared to previous years, when profit came relatively easy. Those banks that controlling only a small market share of two or three per cent will be hit the most – Serbia has 35 such banks, which is quite a substantial number. As such, bankers insist, it is certain that ’small players’ on the banking scene will vanish in the following two to three years, due to increased competition and the pronounced crisis. “We can’t say whether there are too many banks or not enough. The benchmark here is the capital they have at their disposal. For example, our banking sector has at its disposal total capital amounting to close to €5.5 billion, while the capital of Zagrebačka banka alone is around €11 billion. Of course, this shows that people in Croatia owe much more than citizens in Serbia. Indebtedness in Croatia is at the level of €3,700 per capita, while in Serbia it stands at just €537. We can expect the number of banks in Serbia to go down – not only because of the crisis, but also because increased competition will lead to mergers and acquisitions,” notes Dugalić. Guide to Serbian Banking Sector / May 2009 15
INTERVIEW VEROLJUB DUGALIĆ, SECRETARY GENERAL OF THE ASSOCIATION OF SERBIAN BANKS
Banks to stay in Serbia
General of the Association of Serbian Banks. Dugalić could not say what percentage of those new loans approved for refinancing were taken out earlier, but he stressed as “encouraging” the fact that banks are not reducing credits to companies and consumers in response to the recession that the country could face.
“According to our preliminary data, total profit of banks in 2008 was around €300 million” By Zorica MIHAJLOVIĆ Photo Slobodan JOTIĆ
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espite pessimistic forecasts, the credit activity of banks in Serbia has not fallen. Indeed, according to the latest data, the number of loans to companies approved in the first two months of this year is up 9.4% on the end of last year. “The total indebtedness of the economy now amounts to 880 billion dinars, while citizens owe a further 18 billion,” says Veroljub Dugalić, Secretary
MERGING BANKS
“A
few years ago there were 46 banks operating in Serbia. Now there are 34, two of which are also present on the territory of Kosovo. The merger trend is quite natural and is a consequence of competition among banks. This will continue longterm through various forms of mergers and associations of banks in the coming period, although in the present unfolding situation it is difficult to make any forecasts.” 16 Guide to Serbian Banking Sector / May 2009
How much has the number of late payments on loans increased of late? In terms of companies, we’ve observed a mild increase. Repayment delays amounted to 6.4% of loans in January and 6.7% at the end of February. Some 2.7% of companies are late with payments, while the percentage of citizens not paying back loans on time has increased from 1.5 to 1.7%. As such, we’re seeing change, though not yet at levels that would cause concern. Of course, it’s difficult to say what the situation will be like in six months or beyond that. The data available at this time alerts us a little, but it’s by no means alarming as yet. Are banks being significantly more restrictive when it comes to approving new lines of credit? They’re cautious in the requirements they seek of clients, which is understandable considering the altered circumstances. A major problem of the economy is violated illiquidity and one of the ways to overcome that is through subsidised loans, which the Serbian government is offering in co-operation with banks. I think that will help businesses to secure cheaper sources of funding. Additionally, if the multilateral compensation project is implemented I think it will significantly ease the situation that the economy is currently in. You highlighted the fact that banks in Serbia realised low profit rates in 2007. What are the figures for the past year? The profitable capital of banks in 2007 was 7.2% (pre-tax) or between 6.7 and 6.8% net. This is not a great rate, coupled with the fact that the yield rate for last year will be even less. According to our preliminary data, the total profit
of banks in 2008 was around €300 million and, as the capital of banks in Serbia is around 5.5 billion euros, the rate of return is about 5.5%, which is less than the previous year. The reasons are the high rate of obligatory reserves, inflation of around 10 per cent, growth rate/ exchange differences and, of course, the cost of international debts, which are now higher due to the higher credit risk globally. Although interest rates on international markets have fallen - euribor was 5.5 a year ago, while it is now two per cent - the margin of expense on credit risk is rising and the costs banks are being charged abroad are higher than before. All together that influences the growth of banks’ costs and, of course, is reflected in their overall financial result. Are some of the banks headquartered abroad planning to leave Serbia? We don’t expect anything like that to happen. The conditions here are still much better than conditions in other European countries. If a bank were to leave Serbia it would mean they’d found somewhere where working is better and it is difficult to find a more appreciative market than Serbia’s now. Serbia’s still has interest rates higher than in other countries and Serbia has a relatively well regulated market, regardless of the assessment of some agencies relating to Serbia’s high credit risk, which I consider a quite harsh rating. It’s been mentioned that Hypo Alpe-Adria Bank will leave Serbia? I spoke with the representatives of that bank and they confirmed that they are announcing some restructuring of their large system,
The high rate of compulsory reserves of 40 per cent of the sources of exchange origin creates high costs for banks but there was certainly no suggestion that they would sell the Hypo banks located on the territory of Serbia. Hypothetically, if that did happen – thoyugh there are no signs it will – it wouldn’t affect the position of clients, as was the case when HVB Bank was sold to UniCredit.
tential is reduced because 40 per cent of their funds are immobilised. They must compensate for this loss by increasing interest rates. On this basis alone – inflation, plus the required reserve – it’s clear that the average interest rate on bank loans cannot be below 16 per cent.
Is Russia’s Gazprom Bank planning to buy OTP Bank? There have been some indications that Gazprom is interested in buying a bank that will cover its activities in Serbia. However, despite certain suggestions, the road to implementation of such a deal is a little longer. Of course, Gazprom Bank’s arrival would be good because the entry of such capital on the domestic bank would only strengthen its credit potential.
Does inflation also impact on credit indexed in euros? It transfers to the growth rate and, because of these large rate differences, banks are vitally interested in the exchange rate being stable. Is a great untruth to suggest that banks’ speculation generates growth rates. On the contrary, banks are interested in the rate being stable for as long as possible, in order for them to plan their activities and sources of credit. On the other hand, all loans that are indexed in euros become more expensive, so it will be difficult for new customers to take out loans and existing clients are having problems meeting their repayment obligations. This is not in the interest of banks, which seek security and the stability of operations, just like the economy, and constant changes to exchange rate endanger that.
How would you assess last year’s actions of the central bank (NBS) aimed at reducing the credit indebtedness of citizens; what is the situation now? The same high rate of compulsory reserves of 40 per cent of the sources of exchange origin remains in place. This creates high costs of banks and has a knock-on effect on the rates of interest and makes loans more expensive. There are two basic reasons why loans in Serbia are expensive: inflation doesn’t fall below 10 per cent and, because of high compulsory reserves for private banks, their crediting po-
The Dinar has remained stable since Gazprom paid the money to purchase domestic petroleum company NIS. Can the exchange rate be held at the current level? The NBS can always maintain the exchange rate level if it decides to do so, Guide to Serbian Banking Sector / May 2009 17
flation, but inflation of ten per cent is a part of the system in which we’ve lived for decades. On the other hand, growth of three or five per cent in the prices of products is felt strongly by citizens, as is an unemployment rate of 16 or 20 per cent. This bothers all of us, which is why we insist that the monetary measures obviously don’t give results, particularly as they’ve replaced some other measures in fiscal policy. we still have too much public spending and massive state institutions which consume almost half of our GDP.
An adverse development in the exchange rate may come with the repayment of cross-border loans whether that is 80, 85 or 90 dinars to the euro. The only question is what price would be paid for that. At this moment, the exchange rate of about 95 dinars is stable. One of the reasons for this is the inflow of foreign currency for the purchase of NIS, but probably also a fall in demand for foreign currency. The arrangement with the IMF will also have a positive influence, because it will bolster our foreign currency reserves and, psychologically, that fact contributes to the stability of the exchange rate. Adverse movements of the exchange rate may be caused by the return of cross-border loans, because if companies do not have a regular inflow of exports and have obligations abroad then there will be increased demand for foreign currency.
embedded within it is the effect of expenditure-low productivity, irrational production, high public spending, monopolies in the public sector and the impact of import components. All of that puts pressure on prices, while demand on inflation has a much lower impact. The restrictiveness of the NBS’s measures have a direct affect on demand and it turns out that they are treating the disease with good medicine that is used for another disease. It is true that the restrictive measures of the NBS do not contribute to the further escalation of inflation, but it cannot ‘heal’ the illness. On the other hand, they generate the situation we have now with cross-border loans, because the economy is cheapened as the funds are not burdened by the expenses of mandatory reserves.
The central bank hasn’t had a restrictive policy towards cross border loans that companies have taken out directly abroad, regardless of the fact that this also stimulates demand and inflation? This is a short-sighted way of looking at things. Our inflation is not primarily inflation of demand, but rather systematic inflation.
However, the monetary policy of the NBS is not changing. Does this mean that is acutally correct? The National Bank always says “our goal is to restrain inflation”. So, have they managed that? It’s been almost a decade since 2001 and inflation of 10 per cent makes it obvious that these measures cannot be successful because they are not caused by the problems that the NBS is trying to heal. The end goal of the NBS is to not be a generator of inflation and it’s true that the central bank hasn’t adversely affected inflation in the last 10 years. However, that has been done by putting inflation in the foreground as its crucial goal, while ignoring all else that happens to the economy of this country. Spiralling inflation ruins everything that’s been achieved, but inflation of 10 or eight per cent isn’t felt much differently by citizens. That doesn’t mean I’m pining for in-
CENTRAL BANK POLICIES
I
think that the policies of the NBS will not change, that is of course providing that there are no dramatic changes in the region or at home. If the general economic situation remains as it is now, I think there will be no significant change in the policy of referenced interest rates and compulsory reserves. 18 Guide to Serbian Banking Sector / May 2009
How would you assess the initiative to appeal to the international headquarters of banks operating in Serbia not to draw capital away from Serbia because of the financial crisis? Serbia will exerts efforts to talk with the headquarters banks that have subsidiaries here in order to encourage their credit activities. Some time ago a reckless statement was published claiming that credit activities in Eastern Europe would be stopped, allegedly due to bad forecasts for this region. But what are the forecasts for Iceland or the U.S.? What interest rates do you expect in the coming period? Very soon we will know what the average interest rate was for last year, but it certainly wasn’t significantly higher compared to 2007, when the average interest amounted to about 16 per cent. I don’t think there will be a significant change this year either. The existing competition on the Serbian market effects the interest rate strength, which is good, but on the other hand it increases risk, while compulsory reserves are not reduced, inflation is not reduced and the relationship between these opposing forces will determine the interest rate. Nevertheless, I do not expect any significant growth or decline. In our conditions that is a paradox. Prices fall in all economies that are affected by a recession, but that is not happening for us – inflation continues to rise and, consequently, it is difficult to expect that interest rates in Serbia will fall. Some businessmen believe that we will feel the biggest hit to our economy, as a consequence of the world crisis, in April? I don’t see any rational reason why that will be in April. They probably think that because in April they will need to meet certain obligations. However, there is no reason that the main attack won’t come in two or three months. The crisis in Serbia is initiated from outside and, unfortunately, it’s impact will continue to de pend on developments in the world.
banks’ core data
source: NBS
AGROINDUSTRIJSKO KOMERCIJALNA BANKA
AIK BANKA AD NIŠ MAIN INFO: Nikole Pašića 42, 18000 Niš / Phone: +381-18-507-410 / Fax:+381 - 18-523-538 / E-mail: kabinet@aikbanka.rs / www: www.aikbanka.co.rs / ID: 6876366 / SWIFT : AIKBRS22 / Staff: 448 /Auditor for 2008: DELOITTE & TOUCHE doo Beograd
MAIN SHAREHOLDERS (OVER 5%) ATEBANK 20.33% ARTIO INT. EQUITY FUND 5.47%
MEMBERS OF THE MANAGEMENT BOARD Ljubiša JOVANOVIĆ, President of the Managment Board Miodrag KOSTIĆ, Radomir ĐORĐEVIĆ, Jovan GORČIĆ, indepedent member, Đorđe ĐUKIĆ, indepedent member
EXECUTIVE BOARD Jelica MARJANOVIĆ, Chairman of the Executive Board Vladan ĐORĐEVIĆ
ORGANISATIONAL STRUCTURE MAIN AFFILIATES 1 AFFILIATES 23 BRANCHES 34 COUNTERS 24
ALPHA BANK SRBIJA AD BEOGRAD MAIN INFO: Kralja Milana 11, 11000 Belgrade / Phone: 381-11-3234-931,3235-931 / Fax: 381-11- 3246 840; 32 47 581 / E-mail: gm-office@alphabankserbia.com / www: www.alphabankserbia.com / ID: 07736681 / SWIFT: JUBARSBG / Staff: cca. 1750 / Auditor in 2006: KPMG doo Belgrade
MAIN SHAREHOLDERS (OVER 5%) ALPHA BANK A.E. 100.00%
MEMBERS OF THE MANAGEMENT BOARD
Panagiotis H. Vlasiadis
Spyros N.FILARETOS, President of the Managment Board Lazaros PAPAGARYFALLOU, Georgios N. KONTOS, Nebojša SAVIĆ, indepedent member, Ilija DRAŽIĆ, indepedent member, Charalampos E. PAPANAYOTOU
EXECUTIVE BOARD Panagiotis H. VLASIADIS, Chairman of the Executive Board Veselinka MILOŠEVIĆ, Nebojsa DJORDJEVIC, Minas ATHANASIADIS, Periklis DROUGKAS
ORGANISATIONAL STRUCTURE AFFILIATES 25 BRANCHES 166 COUNTERS 6
Guide to Serbian Banking Sector / May 2009 19
banks’ core data BANCA INTESA AD BEOGRAD MAIN INFO: Milentija Popovića 7b, 11000 Belgrade / Phone: +381 – 11- 310 88 88/ E-mail: kontakt@bancaintesabeograd.com / www: www.bancaintesabeograd.com ID: 7759231 / SWIFT: DBDBCSBG / Staff: 3027 /Auditor: BDO BC Excel, Beograd
MAIN SHAREHOLDERS (OVER 5%) Intesa holding international 77.79% Intesa Sanpaolo SPA 15.21% IFC 7.00%
MEMBERS OF THE MANAGEMENT BOARD
Gyorgy Suranyi
Draginja Đurić
Gyorgy Suranyi - President of the Managment Board, Massimo Pierdicchi, Paolo Grandi, Adriano Arietti - members Antonio Stillittano, Nevenka ŽarkićJoksimović, indepedent members
EXECUTIVE BOARD Draginja Đurić - President of the Executive Board, Giancarlo Miranda - Deputy President of the Executive Board, Dejan Tešić, Darko Popović- members
ORGANISATIONAL STRUCTURE BRANCHES 230
BANKA POŠTANSKA ŠTEDIONICA AD BEOGRAD MAIN INFO: Kraljice Marije 3, 11120 Belgrade / Phone: +381-11-3024-555, 3024 100 / Fax: +381-11-3376 777 / E-mail: razvoj@posted.co.rs / www: www.posted.co.rs / ID: 07004893 / SWIFT: SBPOCSBG / Staff: 1465 / Auditor: KPMG DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) Republika Srbija 63.72% JP PTT Saobraćaja Srbija 32.28%
MEMBERS OF THE MANAGEMENT BOARD Nikola ŠULJAGIĆ, President of the Managment Board, indepedent member Ljubiša JEVĐIĆ, indepedent member, Željko IVANJI, Rodoljub RANKOVIĆ, Milun SIMIĆ, Goran LONČAR
20 Guide to Serbian Banking Sector / May 2009
EXECUTIVE BOARD Srđan CEKIĆ, Chairman of the Executive Board Jelena MIJAILOVIĆ-MILOJEVIĆ, Jasminka BOŠNJAK
ORGANISATIONAL STRUCTURE AFFILIATES 4 BRANCHES 29 COUNTERS 1
source: NBS
CREDY BANKA AD KRAGUJEVAC MAIN INFO: Kralja Petra I 26, 34000 Kragujevac / Phone: 381-34-335-617 / Fax: 381-34-331-370, 336-175 / E-mail: info@credybanka.com / www: www.credybanka.com / ID: 07654812 / SWIFT: kragcs22 / Staff: 707 / Auditor: DELOITTE DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%)
EXECUTIVE BOARD
Republika Srbija 55.18% Beogradska banka a.d. u stečaju 7.33%
MEMBERS OF THE MANAGEMENT BOARD Živorad NEŠIĆ, President of the Managment Board Dobrila HAJDUKOVIĆ, Aleksandra PETKOVIĆ, Radovan SIMOVIĆ, indepedent member, Veroljub DUGALIĆ, indepedent member
Milovan Bošković
Milovan BOŠKOVIĆ, Chairman of the Executive Board Jovanka MAČUŽIĆ
ORGANISATIONAL STRUCTURE AFFILIATES 16 BRANCHES 29 AGENCIES 5 OUTLETS 2 COUNTERS 20
ČAČANSKA BANKA AD ČAČAK MAIN INFO: Pivarska 1, 32000 ČAČAK / Phone: 381-32-302-203 / Fax: 381-32-225 048, 348-898 / E-mail: office@cacanskabanka.co.rs / www: www.cacanskabanka.co.rs / ID: 07601093 / SWIFT: CABARS22 / Staff: 394 / Auditor: KPMG DOO Belgrade
MAIN SHAREHOLDERS (OVER 5%) Republika Srbija: 38.81% European bank for reconstruction and development London 24.97%
MEMBERS OF THE MANAGEMENT BOARD
Ljubiša Sudimac
Dragan Jovanović
Ljubiša SUDIMAC, President of the Managment Board Vera LEKO, PhD, vice president Zoran NJEGOVAN, PhD, member Radovan MRVOŠEVIĆ, member Andrzej WITAK, member
EXECUTIVE BOARD Dragan JOVANOVIĆ, President of the Executive Board Aleksandar ĆALOVIĆ, Vice President of the Executive Board Milanka MANDIĆ, Member of the Executive Board
ORGANISATIONAL STRUCTURE BRANCHES 15 SUB-BRANCHES 13 COUNTERS 8
Guide to Serbian Banking Sector / May 2009 21
banks’ core data ERSTE BANK AD NOVI SAD MAIN INFO: Bulevar oslobođenja 5, 21000 Novi Sad / Phone: 381-21- 480 9404 / Fax: 381-21-489-0651 / E-mail: kabinet@erstebank.rs / www: www.erstebank.rs / ID: 08063818 / SWIFT: GIBARS22 / Staff: 1025 / Auditor: ERNST&YOUNG
MAIN SHAREHOLDERS (OVER 5%) Erste Group Bank AG 74,00% Steiermärkische Bank und Sparkassen AG 26.00%
MEMBERS OF THE MANAGEMENT BOARD
Andreas Klingen
Slavko Carić
Andreas KLINGEN, President of the Managment Board Franc KERBER, Ernst-Gideon LOUDON, Aleksandar VLAHOVIĆ, Damir BRONIĆ
EXECUTIVE BOARD Slavko CARIĆ, Chairman of the Executive Board Jasna TERZIĆ, Suzan TANRIYAR
ORGANISATIONAL STRUCTURE COMMERCIAL CENTER 5 PROFIT CENTAR 5 BUSINESS CENTER 7 AFFILIATES 53 BRANCHES 10 CENTER HOR HOUSE LOANS 2
EUROBANK EFG AD BEOGRAD MAIN INFO: Kolarčeva 3, 11000 Belgrade / Phone: 381-11-206-5880, 206-5881, for international calls and for cell phone calls: +381-11-2023-353 / Fax: 381-11-3027-906 / E-mail: office@eurobankefg.rs / Web site: www.eurobankefg.rs / ID: 17171178 / SWIFT: EFGBRSBG / Staff: 1700 / Auditor: PWC
MAIN SHAREHOLDERS (OVER 5%) Eurobank EFG Ergasias Athens 55.21% EFG NEW EUROPE HOLDING B.V.AMSTERDAM 42.74%
MEMBERS OF THE MANAGEMENT Board
Filippos Karamanolis
22 Guide to Serbian Banking Sector / May 2009
David WATSON, President of the Managment Board Members:Giorgio PRADELLI, Evvagelos KAVVALOS, Nikolaos ALIPRANTIS, Theodore KARAKASSIS, Stavros IOANNOU Indepedent members: Slobodan SLOVIĆ,
Angelos TSICHRINTZIS, George MICHELIS
EXECUTIVE BOARD Filippos KARAMANOLIS, Chairman of the Executive Board Nataša KOVAČEVIĆ, Slavica PAVLOVIĆ, Danilo ĐUROVIĆ, Vuk ZEČEVIĆ, Georgios MICHALAKOPOULOS, Antonios CHATZISTAMATIOU
ORGANISATIONAL STRUCTURE BRANCHES 120 Corporate Business Centers 10
source: NBS
FINDOMESTIC BANKA AD BEOGRAD MAIN INFO: Kosovska 10, 11000 Belgrade, Phone: 381-11-3331 701, 333 1722,3331 744 / Fax: 381-3331 775, 3331 796 / E-mail: office@findomestic..rs / www: www.findomestic.. rs / ID: 17076841 / SWIFT: FIDMRSBG / Staff: 332 / Auditor: PRICEWATERSHOUSECOOPERS DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) FINDOMESTIC BANCA SPA FIRENZE 100.00%
MEMBERS OF THE BOARD OF DIRECTORS
Chiaffredo Salomone
Eric Blanchetete
Chiaffredo SALOMONE, Chairmen of the Board Carlo FIORAVANTI, Marco PANTALEONI, Jean - Paul DOUMENG, indepedent member, Virgilio BELLI, Aleksandar SEKULOVIĆ
EXECUTIVE BOARD Eric BLANCHETETE, President of the Executive Board Vladimir MARKOVIĆ, Dragica STOJILJKOVIĆ, Angelo SCATIGNA, Radivoj PEJČINOVIĆ, Jasna JOVIĆVUKOVIĆ, Jean Bernard VERNEYRE
ORGANISATIONAL STRUCTURE HEAD OFFICE AFFILIATES 10 BRANCHES 15 COUNTERS 43
HYPO ALPE-ADRIA-BANK AD BEOGRAD MAIN INFO: Bulevar Mihajla Pupina 6, 11000 Belgrade / Phone: +381-11-222-6000 / Fax: +381-11-222-6555 / E-mail: office@hypo-alpe-adria.rs / www: www.hypo-alpe-adria.rs /ID: 7726716 / SWIFT: haabrsbg / Staff: 853 / Auditor: KPMG DOO Belgrade
MAIN SHAREHOLDERS (OVER 5%) HYPO ALPE-ADRIA-BANK INTERNATIONAL AG Klagenfurt 99.916%
EXECUTIVE BOARD
MEMBERS OF THE MANAGEMENT BOARD
Dr. Tilo Berlin
Vladimir Čupić
Dr. Tilo BERLIN, President of the Management Board Thomas MORGL, Othmar EDERER, indepedent member, Christoph SCHASCHE, indepedent member,
Dragan ĐURIČIN, Paul KOCHER, Andreas DÖRHÖFER, Božidar ŠPAN
Vladimir ČUPIĆ, Chairman of the Executive Board Rade VOJNOVIĆ, Mirko ŠPANOVIĆ
ORGANISATIONAL STRUCTURE REGIONAL AFFILIATES 3 BRANCHES 21 SUB-BRANCHES 20
Guide to Serbian Banking Sector / May 2009 23
banks’ core data JUBMES BANKA AD BEOGRAD MAIN INFO: Bulevar Zorana Đinđića 121, 11070 Belgrade / Phone: 381-11- 220-55-00 / Fax: 381-11-311-02-17 / E-mail: jubmes@jubmes.rs / www: www.jubmes.rs / ID: 07074433 / SWIFT: JMBNRSBG / Staff: 118 / Auditor: DELOITTE DOO Belgrade
MAIN SHAREHOLDERS (OVER 5%) Republika Srbija 21.14% Beobanka a.d. Beograd, u stečaju 6.97% SFRJ 5.61% Hypo kastodi 5.09%
MEMBERS OF THE MANAGEMENT BOARD
Milan Stefanović
EXECUTIVE BOARD Milan STEFANOVIĆ, President of the Executive Board Slobodan LEČIĆ, Jasna ČUPIĆ, Biljana MILOSAVLJEVIĆ, Zlatko HAŠIMBEGOVIĆ
Tanja ĐELIĆ, PhD, President, Dejan ERIĆ PhD, Dragiša VUČKOVIĆ, Branka MIJANOVIĆ indepedent, Dr Miroslav PAUNOVIĆ PhD, indepedent
“JUGOBANKA JUGBANKA” AD KOSOVSKA MITROVICA MAIN INFO: Kralja Petra I 165, 28000 Kosovska Mitrovica / Phone: + 381-28-425-455 / Fax: +381-28-425-452 / E-mail: jugbankakm@ yahoo.com / www: - / ID: 09023321 / SWIFT: JJKMRS21 / Staff: 74 / Auditor: -
MAIN SHAREHOLDERS (OVER 5%) Jugobanka a.d. Beograd, u stečaju 51.25% Fond za razvoj RS-Beograd 30.63% Beobanka a.d. Beograd, u stečaju 10.00%
MEMBERS OF THE MANAGEMENT BOARD Zvonko BURIĆ, President of the Managment Board Milomir JEVTIĆ, Dragan
24 Guide to Serbian Banking Sector / May 2009
MILENKOVIĆ, Zoran JAKŠIĆ, indepedent member, Milosava JOVANOVIĆ, indepedent member
EXECUTIVE BOARD Draško KNEŽEVIĆ, Chairman of the Executive Board Zlatomir ARSIĆ, Ljubiša POPOVIĆ
ORGANISATIONAL STRUCTURE BRANCHES 7 COUNTERS 9
source: NBS
KBC BANKA AD BEOGRAD MAIN INFO: Požeška 65b, 11030 Belgrade / Phone: +381-11-30-50-300 / Fax: +381-11-35-40-930 / E-mail: office@kbcbanka.rs / www: www.kbcbanka.rs / ID: 17138669 / SWIFT: AAAARSBG / Staff: 625 / Auditor: ERNST&YOUNG DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%)
EXECUTIVE BOARD Avram MILENKOVIĆ, Chairman of the Executive Board Steve VERBIST, Aleš POSPIŠIL, Francis J. O. RENARD
KBC INSURANCE NV 100.00%
MEMBERS OF THE MANAGEMENT BOARD Jan VANHEVEL, President of the Managment Board John Arthur HOLLOWS, Rita Paula Clementina DOCX, dr Miroljub HADŽIĆ, indepedent member, dr Nenad VUNJAK, indepedent member
ORGANISATIONAL STRUCTURE AFFILIATES 19 BRANCHES 69
KOMERCIJALNA BANKA AD BEOGRAD MAIN INFO: Svetog Save 14, 11000 Belgrade / Phone: +381-11-308-01-00, 308-01-50 / Fax: +381-11-344-13-35, 344-00-33 / E-mail: posta@kombank.com / www: www.kombank.com / ID: 07737068 / SWIFT: KOBBCSBG / Staff: 3209 / Auditor: KPMG DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) Republika Srbija 42.59% European bank for reconstruction and development 25.00%
MEMBERS OF THE MANAGEMENT BOARD
Mr Vladislav Cvetković
Ivica Smolić
Mr Vladislav CVETKOVIĆ, President of the Managment Board Anka GAJIĆ, Dr Miroslav TODOROVIĆ, indepedent member, Franz LEITNER, Dragica PILIPOVIĆ-CHAFFEY, Mr Mirko PETROVIĆ, Dr Boško ŽIVKOVIĆ, indepedent member
EXECUTIVE BOARD Ivica SMOLIĆ, Chairman of the Executive Board Dragan SANTOVAC, Lidija SKLOPIĆ, Andrijana MILANOVIĆ, Slavica ĐORĐEVIĆ
ORGANISATIONAL STRUCTURE MAIN AFFILIATES 2 AFFILIATES 25 BRANCHES 264 COUNTERS 1
Guide to Serbian Banking Sector / May 2009 25
banks’ core data KOSOVSKO METOHIJSKA BANKA AD ZVEČAN MAIN INFO: Kralja Milutina bb, 38227 Zvečan / For correspondence purposes, the Kosovskometohijska banka a.d. of Zvečan has opened a P.O. Box 88 the Kraljevo Post Office branch / Phone: 381-28-664-730, 381-36-302-602 / Fax: 381-28-664-735 / E-mail: komet ba@ptt.yu / www: www.kosmet-banka.com / ID: 09081488 / SWIFT: - / Staff: 89 / Auditor in 2007: ERNST&YOUNG DOO BEOGRAD / Auditor in 2008: MOORE STEPHENS REVIZIJA I RACUNOVODSVO DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) PKB-Orvin-Orahovac 2.51% Klin.bol.cen. Priština 2.09% DP “Trepča” bat. Gnjilane 1.92% Semenarstvo dd Klina 1.76%
MEMBERS OF THE MANAGEMENT BOARD Zoran STANIŠIĆ, President of the Managment Board Dragan RADAKOVIĆ, Milovan STANOJEVIĆ, Radmila ANĐELKOVIĆ, Radenko LUKOVIĆ, indepedent
member, Ljubiša GOLUBOVIĆ, indepedent member, Branislav CVEJIĆ, indepedent member
EXECUTIVE BOARD Dimitrije LJILJAK, Chairman of the Executive Board Sonja LUKIĆ, Dobrija RADOVIĆ
ORGANISATIONAL STRUCTURE OUTLETS 14 BRANCHES 1 COUNTERS 1
“MARFIN BANK” AD BEOGRAD MAIN INFO: Dalmatinska 22, 11000 Belgrade / Phone: +381-011-3306-300 / Fax: +381-11-3241-448 / E-mail: office@marfinbank.rs / www: www.marfinbank.rs / ID: 07534183 / SWIFT: LIKIRSBG / Staff: 455 / Auditor in 2006: PricewaterhouseCoopers doo Beograd
MAIN SHAREHOLDERS (OVER 5%) MARFIN POPULAR BANK PUBLIC Co Ltd 97.22%
MEMBERS OF THE MANAGEMENT BOARD Christos J. STYLIANIDES, President of the Managment Board Kyriakos MAGEIRAS, Panayiotis C. KOUNNIS, Zoran RADOVANOVIĆ, indepedent member, Miroslava MILENOVIĆ, indepedent member,
26 Guide to Serbian Banking Sector / May 2009
Cleovoulos ALEXANDROU
EXECUTIVE BOARD Rodoula HADJIKYRIACOU, Chairman of the Executive Board Panicos ERACLEOUS, Vladan MANIĆ, Borislav STRUGAREVIĆ
ORGANISATIONAL STRUCTURE AFFILIATES 29 BRANCHES 2
source: NBS
“MERIDIAN BANK-CRÉDIT AGRICOLE GROUP” AD NOVI SAD MAIN INFO: Braće Ribnikar 4-6, 21000 Novi Sad / Phone: +381-21-4876-876 / Fax: +381-214876-976 / E-mail: meba@bankmeridian.com / www: www.bankmeridian.com ID: 08277931 / SWIFT: MEBA RS 22 / Staff: 1037 / Auditor in 2006: ERNST&YOUNG
MAIN SHAREHOLDERS (OVER 5%) CREDIT AGRICOLE S.A. 100.00%
MEMBERS OF THE MANAGEMENT Board Bernard De WIT, President of the Managment Board François PINCHON, Thierry GIRARD, Thierry LANGRENEY, Hugues ROBERT, indepedent member, Miloš ŠVARC, indepedent member, Zoran DRAKULIĆ, indepedent member, François MACE, Predrag VRANEŠ
EXECUTIVE BOARD Francois-Eduard DRION, Chairman of the Executive Board Ognjen MEDIĆ, Jean - Paul PINCHON, Marija MARIĆ-MITROVIĆ, Thierry LEBRUN, Benoit DESTOPPELEIRE
ORGANISATIONAL STRUCTURE REGIONAL AFFILIATES 8 MAIN AFFILIATES 28 AFFILIATES 70
“METALS-BANKA” AD NOVI SAD MAIN INFO: Stražiloska 2, 21000 Novi Sad / Phone: +381-21-488-4400 / Fax: 381-21488-4505 / E-mail: info@metals-banka.rs / www: www.metals-banka.rs / ID: 08212538 / SWIFT: MBSORS22 / Staff: 655 / Auditor: DELOITTE DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) “DDOR Novi Sad”A.D. 15.23% ZAVAROVALNICA TRIGLAV D.D. 5,02%
CHAIRMAN OF THE EXECUTIVE BOARD: As of 23 October 2008, the function of the Board of Directors and Executive
Board has been administered by official receivers, Srđan PETROVIĆ, Ph.D. and Đorđe JEVTIĆ
ORGANISATIONAL STRUCTURE AFFILIATES 26 BRANCHES 77
Guide to Serbian Banking Sector / May 2009 27
banks’ core data MOSKOVSKA BANKA AD BEOGRAD MAIN INFO: Karadjordjeva 89, 11000 Beograd / Phone: +381-11-3952-200 / Fax: +381-11-395-22-40 / E-mail: office@moskovskabanka.rs / www: www.moskovskabanka.rs / ID: 20439866 / SWIFT: MBBGRSBG / Staff: 45 / Auditor: Ernst & Young Beograd d.o.o.
MAIN SHAREHOLDERS (OVER 5%) AKCIONARSKA KOMERCIJALNA BANKA-MOSKOVSKA BANKA 100,00%
MEMBERS OF THE BOARD OF DIRECTORS BORODIN, Andrei F., Chairman of the Board of Directors
Moscow bank Head Office
SYTNIKOV Alexei V., Milutin NIKOLIC, GORBATSEVICH Pavel I., Mario FRLETA Members
EXECUTIVE BOARD Vladimir ZEČAR, Chairman of the Executive Board Slaviša ĐORĐEVIĆ, Member of the Executive Board
Vladimir Zečar
NLB BANKA AD BEOGRAD MAIN INFO: Bulevar Mihaila Pupina 165v, 11070 Belgrade / Phone: +381-11-2225-100 / Fax: +381-11-2225-194 / E-mail: info@nlb.rs / www: www.nlb.rs / ID: 08250499 / SWIFT: CONARS22 / Staff: 946 / Auditor in 2006: PRICE WATERHOUSE COOPERS DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) Nova Ljubljanska banka 99.50%
MEMBERS OF THE MANAGEMENT BOARD Dr. Draško VESELINOVIČ, President of the Managment Board Andrej HAZABENT, Milan MARINIČ, Matej NARAT, Petar SAVATOVIĆ, indepedent member
Dr. Draško Veselinovič
Zoran Đurović
28 Guide to Serbian Banking Sector / May 2009
EXECUTIVE BOARD Zoran ĐUROVIĆ, Chairman of the Executive Board Boris ZAVRŠNIK, Srđan BRAJOVIĆ, Branko KOBAL
ORGANISATIONAL STRUCTURE AFFILIATES 15 BRANCHES 34 COUNTERS 5
source: NBS
OPPORTUNITY BANKA AD NOVI SAD MAIN INFO: Bulevar oslobođenja 2A , 21000 Novi Sad / Phone: 021/4893 111 / Fax: 021/4893 123 / E-mail: office@obs.rs / www: www.obs.rs / ID: 08761132 / SWIFT: OPPBRS22 / Staff:104 / Auditor: KPMG Beograd
MAIN SHAREHOLDERS (OVER 5%) Opportunity Transformation Investments, Inc 63.51% European Bank For Reconstruction And Development 19.11% Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V. 12.74%
MEMBERS OF THE MANAGEMENT BOARD Keith Flintham
Rodger Voorhies
Keith FLINTHAM, President of the Managment Board Florian GROHS, Stacie SCHRADER,
Oksana PAK, indepedent member, Radmila GROZDANIĆ, indepedent member, Karel Rene JACOBUS DE WAALA, Kenneth D. VANDER WEELE
EXECUTIVE BOARD Rodger VOORHIES, Chairman of the Executive Board Dragan GOJKOVIĆ, Vladimir VUKOTIĆ, Vitomir STAMENKOVIĆ
ORGANISATIONAL STRUCTURE AFFILIATES 12
OTP BANKA SRBIJA AD NOVI SAD MAIN INFO: Bulevar oslobođenja 80, 21000 Novi Sad / Phone: +381-21-48-000-00 / Fax: +381-21-48-000-32 / E-mail: office@otpbanka.rs / www: www.otpbanka.rs / ID: 08603537 / SWIFT: OTPVRS22 / Staff: 1111 / Auditor: DELOITTE DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) OTP BANK 90.43% HOME ART & SALES SERVICES A.G. 5.16%
MEMBERS OF THE MANAGEMENT BOARD
Frigyes Hárshegy
Auth Henrik
Frigyes HÁRSHEGY, President of the Managment Board Hargitainé Várhegyi TERÉZ, Revesz Eva LAURA, Farago Csaba ATTILA, Dušan DOBROMIROV, indepedent member, Vlatko SEKULOVIĆ, indepedent member
EXECUTIVE BOARD Auth HENRIK, Chairman of the Executive Board Móczár SÁNDOR, Laura Fodor AGOŠTON
ORGANISATIONAL STRUCTURE Total Number of Branches 71 Flagship Branches 9 Universal Branches 39 Basic Branches 18 Outlets 5
Guide to Serbian Banking Sector / May 2009 29
banks’ core data PIRAEUS BANK AD BEOGRAD MAIN INFO: Kolarčeva 1, 11000 Belgrade / Phone: 381-11-3024-000 / Fax: 381-11-3024-052 / E-mail: mediacentar@piraeusbank.co.rs / www: www.piraeusbank.co.rs / ID: 17082990 / SWIFT: PIRBRSBG / Staff: 573 / Auditor: PricewaterhouseCoopers doo Beograd
MAIN SHAREHOLDERS (OVER 5%) PIRAEUS BANK SAPIREUS 100.00%
MEMBERS OF THE MANAGEMENT BOARD
Stavros Lekkakos
Dimitrios Frangetis
Stavros LEKKAKOS, President of the Managment Board Ilias MILIS, George MANTAKAS, Adrianos Evangelos KOMPOPOULOS, Vasiliki OICONOMOU, Sotirios SYRMAKEZIS, Konstantinos GEORGIOU, Aleksandra JOVANOVIĆ, indepedent member, Georgios
LIAKOPOULOS, indepedent, Branimir MARKOVIĆ, indepedent
EXECUTIVE BOARD Dimitrios FRANGETIS, Chairman of the Executive Board Konstantinos VAGIOTIS, Dimitrios KARIOTIS, Tatjana VASIN
ORGANISATIONAL STRUCTURE AFFILIATES 46 COUNTERS 1
POLJOPRIVREDNA BANKA AGROBANKA AD BEOGRAD MAIN INFO: Sremska 3-5, 11000 Belgrade / Phone: +381-11-2637-622 / Fax: +381-11-328 -1611 / E-mail: dusan.antonic@agrobanka.co.yu / Web site: www.agrobanka.co.yu / ID: 7564856 / SWIFT: AGRLRSBG / Staff: 874 / Auditor: Deloitte DOO Beograd
MAIN SHAREHOLDERS (OVER 5%) Republika Srbija 20,07% Hypo Kastodi 4 5,90%
MEMBERS OF THE MANAGEMENT BOARD Rajko LATINOVIĆ, President of the Management Board; Aleksandar ILIĆ, Deputy of President of the Management Board, Vera MIHATOVIČ, Member, Živojin PLAVŠIĆ, Dr. Danilo ŠUKOVIĆ, independent Member, Dr. Mirko VASILJEVIĆ, independent, Dr. Marko BACKOVIĆ, independent 30 Guide to Serbian Banking Sector / May 2009
EXECUTIVE BOARD Mr Dušan ANTONIĆ, Chairman of the Executive Board; Rajko MAJSTOROVIĆ, Deputy of Chairman of the Executive Board, Branislav PEŠIĆ, Member of the Executive Board, Slavoljub KORIĆANAC, Member, Nikola ARANĐELOVIĆ, Member
ORGANISATIONAL STRUCTURE AFFILIATES 15 BRANCHES 85 COUNTERS 18
source: NBS
PRIVREDNA BANKA AD PANČEVO MAIN INFO: Trg slobode br. 2-6, 26000 Pančevo / Phone: +381-13-344-555, 305-700 / Fax: +381-13- 343-050 / E-mail: info@pbp.rs / www: www.pbp.rs ID: 8222274 / SWIFT: PBPARS22 / Staff: 309 / Auditor: MOORE STEPHENS revizija i računovodstvo
MAIN SHAREHOLDERS (OVER 5%) Republika Srbija 92.94%
MEMBERS OF THE MANAGEMENT BOARD Nenad UROŠEVIĆ, President of the Managment Board Nadica MIHAILOVIĆ, Marija PANTELIĆ, Vesna ĐURIĆ, indepedent member, Marija MITIĆ, indepedent member
EXECUTIVE BOARD Snežana MUNIĆ, Chairman of the Executive Board Svetlana KAVAJA, Nenad PEJČIĆ
ORGANISATIONAL STRUCTURE BRANCHES 7 OUTLETS 5 COUNTERS 2
PRIVREDNA BANKA AD BEOGRAD MAIN INFO: Bulevar kralja Aleksandra 4 11000 Belgrade Phone: 381-11-3816 555 / Fax: 381-11-3816 700 / E-mail: office@pbb-banka.com / www.pbb-banka.com / ID: 7051093 / SWIFT: PBBBRSBG / Staff: 356 / Auditor: DELOITTE DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) Republika Srbija 19.41% HYPO Kastodi 4 9.23% Raiffeisen Zentralbank 6.21%
MEMBERS OF THE MANAGEMENT BOARD
Čedo Petrović
Vuk MRVIĆ, President of the Managment Board Marko HINIĆ, Tomislav GRAHOVAC, Dr Blagoje PAUNOVIĆ, indepedent
member, Zvone TALJAT
EXECUTIVE BOARD Čedo PETROVIĆ, Chairman of the Executive Board Darko DRINJAKOVIĆ, Mirjana LAKOVIĆ
ORGANISATIONAL STRUCTURE BRANCHES 35 COUNTERS 16
Guide to Serbian Banking Sector / May 2009 31
banks’ core data PROCREDIT BANK AD BEOGRAD MAIN INFO: Milutina Milankovica 17, 11070 New Belgrade / Phone:+ 381-11-2077-906 / Fax: +381-11-2077-905 / E-mail: info@procreditbank.rs / www: www.procreditbank.rs / ID: 17335677 / SWIFT: PRCBRSBG / Staff: 1999 / Auditor: PRICEWATERHOUSECOOPERS DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) ProCredit holding a.g.Frankfurt 83.33% Commerzbank AG Frankfurt 16.67%
MEMBERS OF THE BOARD OF DIRECTORS
Dörte Weidig
Svetlana Tolmačeva
Dörte WEIDIG, President of the Board of Directors Dr. Klaus GLAUBITT, Dr. Klaus-Peter ZEITINGER, Gabriele HEBER, Helen ALEXANDER, indepedent member, Per FISCHER, indepedent member, Goran ŽIVKOV, indepedent
EXECUTIVE BOARD Svetlana TOLMAČEVA, Chairman of the Executive Board Mirjana GARAPIĆ-ZAKANJI, Dejan JANJATOVIĆ
ORGANISATIONAL STRUCTURE MAIN BRANCH 1 REGIONAL CENTERS 4 BRANCHES 86
RAIFFEISEN BANKA AD BEOGRAD MAIN INFO: Bulevar Zorana Đinđića 64a, 11000 Belgrade / Phone: 381-11-3202-100 / Fax: 381-1111-220-2179 / E-mail: rbj.contact@raiffeisenbank.rs / www.raiffeisenbank.rs / ID: 17335600 / SWIFT: RZBSRSBG / Staff: 2211 / Auditor: DELOITTE DOO BEOGRAD
SHAREHOLDERS (OVER 5%) Raiffeisen International Beteiligungs 100,00%
MEMBERS OF THE MANAGEMENT BOARD
Dr. Herbert Stepic
Oliver Roegl
32 Guide to Serbian Banking Sector / May 2009
Dr. Herbert STEPIC, President of the Managment Board, Peter LENNKH, Heinz HOEDL, Tatjana ALEKSIĆWEESE, indepedent member, Martin GRÜLL
EXECUTIVE BOARD Oliver ROEGL, Chairman of the Executive Board Goran KESIĆ, Svetozar ŠIJAČIĆ, Zoran PETROVIĆ, Nenad SIBINOVIĆ
ORGANISATIONAL STRUCTURE REGIONAL AFFILIATES (regionalne filijale) 8 BRANCHES 94 COUNTERS 6
source: NBS
SOCIETE GENERALE BANKA SRBIJA AD BEOGRAD MAIN INFO: Bul. Zorana Djindjića 50a/b, 11070 Belgrade / Phone: +381-30 -11- 555 / Fax: +381-11-31-32-885 / E-MAIL: Business with citizens: stanovnistvo.sgs@socgen. com / Business with companies: privreda.sgs@socgen.com / Comments, complaints, and suggestions: knjiga.utisaka@socgen.com / www.societegenerale.rs / ID: 7552335 / SWIFT: SOGYRSBG / Staff: 1161 / Auditor: Deloitte doo Beograd
MAIN SHAREHOLDERS (OVER 5%) EXECUTIVE BOARD
Societe Generale S.A. 99.99%
MEMBERS OF THE BOARD OF DIRECTORS
Goran Pitić
Antoine Toussaint
Goran PITIĆ, President of the Board of Directors, Jean-Didier REIGNER, Member Jean-Lin DESCHANEL, Member Serge EVEILLE, Member Francois D’ORNANO, Member
Antoine TOUSSAINT, President of the Executive Board Gilles VERSEILS, Vice President of the Executive Board Patrick PORCHER, Member Miroslav REBIĆ, Member Branka PAVLOVIĆ, Member
SRPSKA BANKA AD BEOGRAD MAIN INFO: Savska 25, 11000 Belgrade / Phone: +381-11-3607-200, 3607-499 / Fax: 381-11-2644-854, 2659-492 / E-mail: banka@srpskabanka.rs / www: www.srpskabanka.rs / ID: 7092288 / SWIFT: SRBNRSBG / Staff: 381 / Auditor: ERNST&YOUNG BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) Republika Srbija 96.52%
MEMBERS OF THE MANAGEMENT BOARD Goran DŽAFIĆ, President of the Managment Board - independent, Ljubisav JOLOVIĆ, Vesna PETROVIĆ, Ljubiša ĐUROVIĆ, indepedent member
EXECUTIVE BOARD Milan BLAGOJEVIĆ, Chairman of the Executive Board Svetislav TRIFUNOVIĆ, Snežana RISTOVIĆ
ORGANISATIONAL STRUCTURE OUTLETS 10 COUNTERS 1
Guide to Serbian Banking Sector / May 2009 33
banks’ core data UNICREDIT BANK SRBIJA AD BEOGRAD MAIN INFO: Rajićeva 27-29, 11000 Belgrade / Phone: 381-11-32 04 500 / Fax: 381-11-33 42 200 / E-mail: office@unicreditgroup.rs / www: www.unicreditbank.rs / ID: 17324918 / SWIFT: BACXRSBG / Staff: 923 / Auditor: KPMG DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) UniCredit Bank Austria 99,92% A & B Banken – Holding GmBh, Austria 0,08%
MEMBERS OF THE MANAGEMENT BOARD Erich Hampel, President
Klaus Priverschek, Chairman
Erich HAMPEL, President of the Managment Board Wolfgang EDELMÜLLER, Martin KLAUZER, indepedent member,
Helmut HALLER, Nikola JANKOVIĆ, indepedent member
EXECUTIVE BOARD Klaus PRIVERSCHEK, Chairman of the Executive Board Zoran VOJNOVIĆ, Branislav RADOVANOVIĆ, Georgi ZAMANOV
ORGANISATIONAL STRUCTURE BRANCHES 70
UNIVERZAL BANKA AD BEOGRAD MAIN INFO: Francuska 29, 11000 Belgrade / Phone: 381-11-3022-801 / Fax: 381-11-3343-017 / E-mail: office@ubbad.rs / www.ubbad.rs / ID: 06031676 / SWIFT: UBBGRSBG / Staff: 461 / Auditor: ERNST&YOUNG DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) /
MEMBERS OF THE MANAGEMENT BOARD Budimir JOVKOVIĆ, President of the Managment Board Milovan ĐUROVIĆ, Nebojša NOVAKOVIĆ, Radmila BAJEVIĆ, Miodrag PAVLOVIĆ, indepedent member, Rajko KOPRIVICA, indepedent member, Aleksandar MILOJEVIĆ, indepedent member
34 Guide to Serbian Banking Sector / May 2009
EXECUTIVE BOARD Ljiljana STOJANOVIĆ, Chairman of the Executive Board Miodrag ĐUKIĆ, Milovan PUZOVIĆ
ORGANISATIONAL STRUCTURE AFFILIATES 16 BRANCHES 45 COUNTERS 1
source: NBS
VOJVOÐANSKA BANKA AD NOVI SAD MAIN INFO: Trg slobode 7, 21000 Novi Sad / Phone: 381-21-488 66 00, 4886 735 / Fax: 381-21- 6624 859 / E-mail: infocentar@voban.co.rs / www: www.voban.co.rs / ID: 08074313 / SWIFT: VBUBCS22 / Staff: 2620 / Auditor: DELOITTE DOO BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) National bank of Greece 100.00%
MEMBERS OF THE MANAGEMENT BOARD Ioannis PECHLIVANIDIS, President of the Managment Board Anthimos THOMOPOULOS, Agis LEUPOULOS, Darko SPASIĆ, indepedent member, Prof.dr.Dejan POPOVIĆ, indepedent member, Milan
Marinis Stratopoulos
PARIVODIĆ, Demetrios LEFAKIS
EXECUTIVE BOARD Marinis STRATOPOULOS, Chairman of the Executive Board Milan VUKIČEVIĆ, Efstratia FOUNTOUKOU
ORGANISATIONAL STRUCTURE AFFILIATES (filijale) 68 BRANCHES 72
VOLKSBANK AD BEOGRAD MAIN INFO: Bulevar Mihajla Pupina 165g, 11000 Belgrade / Phone: +381-11-2013-200, 201 6969 / Fax: 381-11-20-13-270 / E-mail: info@volksbank.rs / www: www.volksbank.rs / ID: 07792247 / SWIFT: VBOERSBG / Staff: 483 / Auditor: KPMG d.o.o. BEOGRAD
MAIN SHAREHOLDERS (OVER 5%) Volksbank international AG 96.90%
MEMBERS OF THE MANAGEMENT BOARD
Axel Hummel
Udo SZEKULICS, President of the Managment Board Mag. Gerhard WÖBER, David VADNAL, Nóra KOCSIS, indepedent member, Branislav
ĆOSIĆ, indepedent member
EXECUTIVE BOARD Axel HUMMEL, Chairman of the Executive Board Gordana MATIĆ, Klaus MÜLLER, Josef GRÖBLACHER
ORGANISATIONAL STRUCTURE BRANCHES 26
Guide to Serbian Banking Sector / May 2009 35
Guide to Serbian Banking Sector / May 2009 37
INTERVIEW DRAGINJA ĐURIĆ, PRESIDENT OF BANCA INTESA’S EXECUTIVE BOARD
Stability & trust above all
about the bank’s plans to overcome the economic downturn and its affects on the entire banking system.
“The global economic crisis has been a difficult test for the domestic financial system to endure, especially during the fourth quarter of last year.” By Ana STOJANOVIĆ
B
anca Intesa has recorded outstanding business results over the last few years. Her we speak to Draginja Đurić, President of Banca Intesa’s Executive Board,
GOVERNMENT MEASURES
“U
nder conditions of extremely limited resources and budget limitations, the state has devised a plan that envisages a substantial reduction in public spending. The government has invested a lot of effort in protecting production and employment in the real sector. Of course, the risk of a further economic slowdown is still present, as is the risk of lower budget revenue. A very difficult adjustment period is ahead of us, but it is important to mention that the biggest banks in Serbia, owned by foreign banks, recently agreed not to decrease their level of exposure in Serbia in the coming period. According to the IMF, the agreement reached between the banks in Vienna was of key importance in deciding how much money was needed. After the signing, it was agreed that the amount of three billion euros was sufficient to cover Serbia’s needs in the following two years.” 38 Guide to Serbian Banking Sector / May 2009
Do you think that the consolidation of banks is a scenario that might happen just because of the global economic crisis? Increasingly difficult conditions for doing business and the negative knock-on affects of the financial crisis are imposing additional limitations and creating new challenges for everybody on the domestic market. The way banks respond to growing challenges depends solely on their financial strength and business flexibility. Still, economic logic tells us that the smaller banks, which have been mostly focused on local markets, are going to find it increasingly difficult to maintain their position under these altered circumstances. Anyhow, in the following period we can expect shareholders to make some rational moves, whether we are talking mergers or withdrawing from the market all together. The state was the first to make such a move by recently announcing the merger of smaller banks in which it has a majority stake. It remains to be seen how the IMF’s diagnostic study of the sensitivity of the domestic banking system will reflect on the consolidation process on the Serbian market. In your opinion, how expedient have the measures devised by the NBS been and can the latest measures prevent the crisis from disrupting the banking sector in Serbia? We are definitely going to feel the affects of the crisis, and, unfortunately, there are no measures that could completely isolate and protect our system from global tendencies. Serbia is an integral part of global financial flows and, to a certain extent, will have to take some of the brunt of the economic crisis. After all, we are talking about the biggest crisis in the last seventy years. However, a mitigating circumstance is the fact that the NBS, which has been in favour of a restrictive monetary policy and conservative regulation, amassed adequate reserves (socalled buffers) that are now making it possible
to have a somewhat more relaxed and flexible approach to regulating the way in which the banking system works. When the first wave of the crisis struck in October and people started to withdraw their savings from banks, the NBS was very quick to react by abolishing the required reserve on all loans that are about to be taken abroad. In this way, the impact of the crisis was cushioned very rapidly and the foreign currency liquidity of banks was preserved. At the same time, following changes made to the relevant regulation, the central bank gave its support to the government’s efforts to secure the continuation of loan activities. Do you think that banks’ parent offices abroad will continue to provide assistance to their Serbian subsidiaries? Domestic banks that are owned abroad are members of international financial groups and, as such, are obliged to implement policies in line with the strategic guidelines of their head offices. This is why we have such differences between the banks that operate in Serbia. At this moment, some banks are implementing a more defensive strategy which implies maintaining the current level of exposure, while others have continued to grant both corporate and retail loans. You asked me about assistance and I have to tell you that assistance is derived from relations between a ‘mother bank’ and a daughter company. The head offices of the leading banks in Serbia recently signed an agreement to work towards making specific commitments in the next few weeks regarding maintaining their exposure in Serbia and provoding adequate support to their subsidiaries. We are prepared to make these commitments, within the framework of the multilateral support programs, on bilateral basis with the NBS, and with the involvement of our home country supervisory authorities, according to European and the respective national regulatory frameworks. Of course, it is important to note that banks in Serbia have to operate in line with domestic laws, regardless of their ownership structure. Global consolidation could lead to changes made to the ownership of domestic banks, but the Law on Banks explicitly implies that bank owners are banned from withdrawing funds invested in their assets. Banca Intesa has recorded excellent business results during the last few years. Are you happy with your results? I agree that Banca Intesa has managed to continue achieving exceptional business results. We are the leading bank when it comes to almost all key parameters. We are also the number one creditor of businesses in Serbia. Our current market share stands at a respectable 15%. Of course, we are aware that this
“I agree with those economic experts that support the government’s measures.” position brings a special kind of responsibility, especially now with the adverse business conditions arising from the crisis. Since October last year, when the negative effects of the crisis first emerged, our placements have gone up by 41%. Additionally, I would like to mention that our shareholders are resolute in supporting all Banca Intesa’s activities aimed at solidifying the bank’s position in the coming period. What are Banca Intesa’s plans for the coming period? Even in these altered market conditions, Banca Intesa is trying to find adequate solutions that will enable our clients to overcome the crisis relatively unscathed. This is also our main task in the upcoming period. Accordingly, Banca Intesa has decided to get involved in the government’s programme for overcoming the effects of the global economic crisis. After only two months of the programme’s implementation, Banca Intesa has emerged as the absolute leader among the banks included in the programme: with €80 million worth of granted loans, which is over 50% of the total loans approved via this programme. Furthermore, Banca Intesa has been continuously providing help to local communities all over the country through collaborations with local self-
governments. Over 60% of loans for local governments were granted via Banca Intesa. We are also actively involved in finding the cheapest possible sources of financing in order to provide favourable loans. The bank has signed contracts with the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB) stipulating the provision of cheaper financing sources through supporting SMEs and local governments with their development projects and the construction of infrastructure. I would especially like to mention that, thanks to our head office giving direct support, Banca Intesa is the first bank in Serbia to get involved in implementation of a credit line together with the Council of Europe Development Bank. Banca Intesa has also signed a contract with KfW covering a credit line that will provide financial backing to cities and municipalities in Serbia seeking to modernise pre-school facilities, schools, hospitals and roads. Banca Intesa is also the first bank to sign on for the credit line granted by the European Bank for Reconstruction and Development (EBRD) for funding energy efficiency projects. We are currently negotiating with the Council of Europe Development Bank in order to secure more favourable mortgage loans to the poorest section of the population. Guide to Serbian Banking Sector / May 2009 39
SLAVKO CARIĆ, EXECUTIVE BOARD CHAIRMAN OF ERSTE BANK
Excellent business results “We are confident that Erste Bank is one of the banks that will emerge from this crisis stronger and more stable than many other banks” By Ana STOJANOVIĆ
T
he operational results of Erste Bank and the affects of the global economic downturn were just two of the topics we discussed with Slavko Carić, Executive Board Chairman of Erste Bank.
ERSTE BANK’S PLANS
“T
his year our focus will be on improving customer relations and continuing to support their development. We expect key indicators to become better. Additionally, we are going to focus on increasing our operating efficiency and profitability.”
40 Guide to Serbian Banking Sector / May 2009
What is your view of the effects the global economic crisis is having, or will have, on banks in Serbia? The global crisis has been affecting many companies, but banks in are in a relatively better position because of their high level of capitalisation and liquidity. However, we do have to adjust our everyday operations to these new circumstances. The risks are now higher, financing sources abroad have become more expensive and demand for retail loans is declining while companies are facing illiquidity. The set of measures devised by the Serbian Government is a good basis to approach some of these challenges head on, while additional measures implemented by the state to help faltering companies that do have good production programmes and managers would certainly be welcome by banks which, in that case, would grant corporate loans with much more ease. A lot has been said in the recent past about the consolidation of the banking sec-
tor in Serbia. Will this also be one of the consequences of the crisis? Consolidation is already happening in the U.S., which is trendsetter in this area. The things that have been going on there are going to come to Europe quite soon, so we can expect the banking sector in Europe to start consolidating too. Bigger banks and those that have had a more conservative approach in their operations, i.e. the ones that have managed to preserve their balance assets, will be given an opportunity to buy smaller banks that failed to do likewise. We are confident that Erste Bank is one of the banks that will emerge from this crisis stronger and more stable than many other banks.
The Group’s operating profit grew by 19.3% in comparison to 2007 How would you summarise the operational results achieved by Erste Bank over the course of 2008? Despite business hardships, both Erste Bank in Serbia and Erste Group globally had excellent business results last year. The Group’s operating profit grew by 19.3% in comparison to 2007, i.e. to three billion Euros, while net profit in 2008 amounted to €860 million. Last year, Erste Bank in Serbia generated record-breaking operating profit of a billion dinars, while the net profit amounted to 320 million dinars.
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UNIVERSAL PLAYER
N Mr Draško Veselinovič, new Chairman of the Management Board of NLB banka a.d Beograd
NLB bank covers around three per cent of the banking market in Serbia
CONTACT NLB banka a.d. Beograd Bulevar Mihaila Pupina 165v 11070 Novi Beograd T: +381 11 22 25 100 T: +381 11 22 25 101 F: +381 11 22 25 194 F: +381 11 22 25 195 E: info@nlb.rs SWIFT: CONARS22 www.nlb.rs 42 Guide to Serbian Banking Sector / May 2009
LB banka a.d. Beograd, located at 165v Bulevar Mihajla Pupina and formed through the merger of NLB LHB banka Beograd and NLB Continental banka Novi Sad, started working on 1st January under its new name and at its new headquarters, located in the office building of the NLB Group in Serbia. NLB bank covers the entire Serbian market; it has 120 business offices and 950 employees at present. With capital stock of over €70 million and a balance sheet sum of €465 million, the bank covers around three per cent of the banking market in Serbia. NLB bank operates as a universal bank, offering a wide range of banking services that are adjusted to fit the needs and expectations of both our corporate and individual clients. Banking experts and other professional personnel working at this bank exert intense efforts to boost the bank’s market position, constantly keeping in mind their responsibility towards clients and shareholders, employees and the wider community. The Bank’s main business principles and long-term commitment are directed towards generating profit on the basis of market criteria. The mission of the bank is to seek to find the optimal measure and compromise within different goals imposed by modern business operations such as (1) fast growth and stability (2) mass transactions and individual approach to each client’s request (3) recognising standards and flexibility (4) global and local markets (5) profit and social responsi-
bility. Mr Draško Veselinovič was appointed the new Chairman of the Management Board of NLB banka a.d. Beograd on 1st April 2009 and he was also recently appointed new CEO of NLB d.d. Ljubljana. The fact that Mr Veselinovič, who is acting CEO of NLB in Slovenia, has been appointed as the Chairman of the Management Board of NLB bank in Serbia indicates the interest this important bank group has in the Serbian market, i.e. it indicates the intention to significantly strengthen the position of NLB bank in Serbia. NLB bank is a member of the NLB Group, a Slovenian international financial organisation. Besides NLB bank, other members of NLB Group in Serbia include NLB Leasing d.o.o. Beograd, NLB Interfinanz d.o.o., NLB Nova penzija a.d., Prvi faktorFaktoring d.o.o. & NLB Srbija d.o.o. The NLB Group is the largest Slovenian international financial organisation, with 1,500 correspondent bank connections in 140 countries and 9,435 employees. It consists of 55 members operating in 18 European countries. Comprising 12 banks, 11 leasing companies, 12 international finance companies, five insurance companies, an asset management company and 15 other companies, this group is capable of providing a wide range of services for its clients - even for the largest ones, such as the state and large corporations. International Credit Ratings that provide the Group with access to international investment funds are: Moody`s A2, Fitch A- i Capital Intelligence A.
MILAN STEFANOVIĆ, PRESIDENT OF THE EXECUTIVE BOARD
RECORD NET PR commitments under currency clause – having in mind that about 70% of all corporate and retail loans, as well as 100% of cross-border loans, are tied to the dinar/euro exchange rate. We can expect that, due to the crisis, which is spreading through our economy and causing the general liquidity problem, commercial banks will have to face gradual assets deterioration and bad loans growth.
“Potential strategic partners have always shown business interest for JUBMES banka.” By Ana STOJANOVIĆ
I
n order to get acquainted with operations of JUBMES banka a.d. Beograd, under the economic crisis conditions, with the Bank’s 2008 results and plans for the next year, as well as with other issues, we spoke to Mr. Milan Stefanović, President of the Executive Board of the Bank.
To what extent will the global economic crisis affect the operations of banks in Serbia? At present, solvency of the banking sector is not endangered, owing to its large capital. However, insolvency could appear, if bank’s debtors suffer business activity slowdown, due to shortage of loans available on the banking market, to further fall of sales and further dinar depreciation, as well as due to the rise of loan
JUBMES BANK PLANS
W
e are adjusting all our plans and activities to the current financial situation in Serbia and in the Region. Under such aggravating business conditions our main goal is achieving real business volume growth, while permanently executing the activities in conformity with the principles of liquidity, security and profitability. Furthermore, our current business plan is to strengthen the Bank’s capital base, to improve the efficiency of internal resources and to comply all business activities with the Bank’s risk policy.
44 Guide to Serbian Banking Sector / May 2009
How would you assess the operations of banks in Serbia in 2008? In the course of 2008, banking sector in Serbia recorded high growth rate, significantly affecting the economy growth. Despite the negative impact of the global financial crisis in the fourth quarter of 2008 (marked by the massive foreign currency savings withdrawal, cessation of cross-border loans granting and slowdown of activities on inter-bank market), the Serbian banking sector achieved a record yearly profit, with the return on assets almost highest in the Region. In short, the Serbian banking sector operations in 2008 were characterized by significant interest and net profit revenues growth, achieving high profitability and efficiency level at the same time. Furthermore, the banking sector maintained positive trend of balance growth recorded in previous years, with high participation of liquid assets, low participation of uncollectible placements within total placements and relatively high capital adequacy ratio (23% on average). Are you satisfied with the operations of JUBMES banka a.d. Beograd in 2008? In 2008 the Bank achieved record net profit totaling EUR 15,4 million, with all of the Bank’s business activities significantly improved in comparison with the previous period. In addition to profitability, the Bank maintained the high level of liquidity, owing to large stake of liquid funds in total funds, as well as the high level of solvency, expressed by the above average ratio of capital adequacy recorded in 2008. According to the official data of the National Bank of Serbia, JUBMES banka a.d. Beograd is ranked among the top rated banks in Serbia, as per profitability and productivity indicators. Has JUBMES banka attracted the interest of foreign banks in the previous period and what is the current situation?
OFIT JUBMES banka has a long tradition in performing activities successfully, gaining high reputation and confidence in banking and business circles, both in Serbia and abroad. JUBMES banka is thereby known as a highly profitable bank, never burdened by bad debts or investments, neither by over-employment, having professional skilled staff and experienced financial experts. For this reason potential strategic partners have always shown interest for association or business cooperation with JUBMES banka. Nevertheless, due to global financial crisis, possible strategic partnership negotiations will be on stand-by until stabilization of the financial market.
Possible strategic partnership negotiations will be on stand-by until stabilization of the financial market
JUBMES BANKA A.D. BEOGRAD
TRADITIONAL AND MODERN APPROACH
T
he establishment of JUBMES banka a.d. Beograd is directly connected to implementation of the national scheme of the support to exports and foreign investments. The Yugoslav Bank for International Economic Cooperation was founded by the special law in 1979, as an export credit agency specialized for exports financing and insurance of exports. he Bank was engaged in various forms of cooperation with international and regional development institutions. Being the only export credit agency in the Central, East and South-East Europe Regions until the beginning of 1990’s, the Bank signed cooperation agreements with the leading export credit agencies in the World and held observer status in the Bern Union. ince 1997 the Bank has been operating as a commercial bank. Creatively combining positive experiences of an export credit agency and of a highly ranked commercial bank in the local banking and financial sector, the Bank situated its position in the market as a modern, adjustable, dynamic financial institution. n order to meet the challenges of dynamic regional and global banking market, the Bank offers clients wide scope of traditional banking and other financial products and services (deposits, credits and guarantees, payment operations, retail banking operations, E-banking services, legal and financial consulting services etc), as well as innovative ones. his orientation required development of sophisticated system and procedures for risk control and management, professional and skills improvement of the staff, as well as development of modern information technology facilities. The Bank also actively applies the con-
T S I
T
cept of socially-responsible attitude, i.e. corporative social responsibility and with this respect signed the United Nations Global Compact. n accordance with new provisions regulating the local financial sector due to European integration process etc, the Bank is developing a profile of a modern, competitive bank, active on the capital market. he Bank focuses its development strategy towards the model of a universal bank, both traditional and modern, specialized for giving financial support to Serbian exporters, for creating new products and services tailored to the specific client base (companies and SME-s) needs, for rendering expert and technical assistance in collecting claims from foreign debtors etc. his development strategy will enable Bank to reach the position of a highly competitive partner, ready to be engaged under various cooperation agreements with financial sector institutions from the South-East Europe Region (where many free trade agreements are in force, as CEFTA and others), as well as an significant subject of local and regional banking and financial sector, giving its contributions to implementation of European integrations process.
I T T
JUBMES BANKA A.D. BEOGRAD BULEVAR ZORANA DJINDJIĆA 121 BEOGRAD, SERBIA TEL. 381 11 2205 500; FAX: 381 11 311 0217 SWIFT: JMBNRSBG; www.jubmes.rs E-mail: jubmes@jubmes.rs Guide to Serbian Banking Sector / May 2009 45
REGULATIONS BANKING SYSTEM
EXTERNAL BANKING OPERATIONS The conditions for obtaining authorisation to do business with foreign countries has been liberalised.
P
ursuant to the Decision on Conditions for Granting and Revoking Authorisations to Banks to Engage in External Transactions (“RS Official Gazette”, No.5/2007), banks’ performance of external transactions is subject to a special authorisation granted by the National Bank of Serbia. It is important to note that compared to the earlier Decision on the Conditions for the Issuance of Authorisation to Banks for Foreign Operations, as well as Conditions for Revoking Such Authorizations (“RS Official Gazette”, No.76/2004), the decision that came into force on 19th January 2007 liberalises conditions for obtaining authorisation to engage in external transactions in that it does not envisage the obligation for banks to keep a minimum of €6 million or its equivalent in another convertible currency on their foreign currency accounts. Pursuant to the new decision, banks that have already been granted the NBS’s authorisation to engage in external transactions may freely dispose of the above amount of foreign exchange funds on their accounts abroad, implying that they are not obliged to submit electronically “Monthly Reports on Foreign Currency Account Balances” to the National Bank of Serbia, which used to be considered as proof of them adhering to one REVOCATION OF AUTHORITY
T
he National Bank of Serbia reserves the right to revoke the authorisation of a bank in the event of non-compliance with conditions prescribed by the decision.
46 Guide to Serbian Banking Sector / May 2009
Banks authorised to engage in external transactions are obliged to maintain their level of liquidity of the prescribed conditions. The decision also stipulates that banks that have obtained authorisation to engage in external transactions are obliged to maintain their level of liquidity in compliance with regulations governing risk management. Non-compliance with this condition shall be deemed as sufficient grounds for revoking the authorisation. A bank shall be granted authorisation to engage in external transactions provided that it meets the following conditions: - it has been granted an operating license by the National Bank of Serbia and entered into the register of business entities (relevant decisions should be submitted in support of the application for authorisation to engage in external transactions); - its technical and organisational capacities ensure the efficient performance of external transactions in compliance with international standards, which must be fully described in writing and appropriately documented; - staff in the bank’s organisational units in charge of handling external transactions
are qualified for their performance, which also must be fully described in writing and appropriately documented. A bank that has obtained authorisation to engage in external transactions shall be obliged to: - establish a network of correspondent relations and open current accounts with foreign banks within 90 days of the date of issuance of authorisation to engage in external transactions; - inform the National Bank of Serbia of its accounts opened abroad – within 15 days of the date of opening such accounts; - perform external transactions’ related obligations in the country and abroad with due diligence and in a timely manner and to adhere to international rules and customs and domestic regulations; - maintain the level of liquidity in compliance with regulations governing risk management; settle obligations towards the National Bank of Serbia with due diligence and in a timely manner, as well as obligations towards other banks in the country. Source: NBS
THE YEAR OF DEVELOPMENT AND MODERNISATION Privredna banka Beograd AD (PBB) is a bank with nearly 40 years of tradition in the financial market of former Yugoslavia. It was founded as the affiliate of Privredna banka Sarajevo as far back as 1973. In 1989 the Bank was registered as an independent shareholding company under the Banking Law, and since 1995 it has been operating as a joint stock company. The Bank’s shareholders include the Republic of Serbia, local companies and small businesses, but also international investors with the increasing participations through investment funds (over 17%) which absorb a significant portion of trading in the Bank’s shares on the Belgrade Stock Exchange. The Bank is a member of the Serbian Central Securities Depository and Clearing House. The products prevailing in the Bank’s business involve lending support to small and medium-sized enterprises, retail banking services, guarantees, demand and short-term deposits, and international payments. On its route to the meaningfully designed regional expansion, PBB ended the year of 2008 with 37 branches and 11 extended counters.
their needs, both in terms of the available banking products and the excellence in quality of banking services. PBB productively develops its business in all directions: corporate, retail, SMEs and small businesses, while in 2009 it intends to be more effectively involved in asset management, with banking services provided to its customers in line with the advanced international standards. PBB’s development and business strategies have also received positive response from international financial institutions (EBRD, EFSE, EIB) which made their credit support available to the Bank to strengthen the long-term sources of funding intended for corporate and retail lending. For its performance under the EBRD Trade Facilitation Programme, the European Bank for Reconstruction and Development recognised PBB as the most active Serbian bank in financing of exports in 2008, and the award was perceived by the Bank as particularly important and encouraging. PBB was restuctured after its 2006 IPO into a universal commercial bank by a dynamic new menagement team. Building on the strong support it has received from the EBRD, EFSE, EIB; PBB provides a range of lending products and offers outstanding investment opportunites.
Čedo Petrović Chairman of the Executive Board
The Bank’s continued success, which was in 2008 reflected in considerably expanded customer and deposit base, improved volume and structure of the financial support provided to customers, and significantly increased savings, has resulted from the Bank’s efforts to create and foster a long-term partnership with its customers ensuring that it responds most efficiently to
Čedo Petrović, PBB’s Chairman of the Executive Board, explains: „We aim to expand our activites and boost our deposits and number of clients. We can expand our level of lending, but we need additional capital; we are planning to issue preferential shares. PBB is a small bank with huge potential. Investors can benefit from our well-established network and in-depth local knowledge.“ He adds that PBB is looking into cross-border financing.
SURVEY
GFK SURVEYS BANKING CLIENT SENTIMENTS
POPULARITY ASSESSED S B M O ERBIAN
ANKING
By Marko ĐORĐIĆ, JUNIOR RESEARCH CONSULTANT, GFK
C
hoosing a brand has never been a straightforward thing. During the selection of a brand, consumers are prone to make decisions based on varying factors – some of which are rational, and some of which are emotional; some are based on previous experience and some are based upon further expectations and intuition. Choosing which bank to co-operate with has always been a sensitive issue for each of us. Apart from reliability and security – a must for every financial insti-
48 Guide to Serbian Banking Sector / May 2009
ARKET
tution – another vital role when choosing a bank is played by the human factor, quality of service and identification with a bank. People very often consider a bank’s country of origin, with each country perceived in a different manner and, therefore, each country projecting an image that may significantly influence the overall perception of a bank operating on a foreign market. Since 2001, Serbia has become a good homeland for many foreign banks. Some of them have built their image and operations from the ground up, while some have grown through mergers and acquisitions. Either way, after the transition of ownership each bank heads through the journey
VERVIEW
of change.The few paragraphs in front of us are aimed at describing some of the vital market indicators of banks’ market positions on the Serbian market according to their country of origin. We will examine the way these indicators have changed during the past three years and try to gain insight into how banks’ clients perceive banks of different countries of origin. METHODOLOGICAL EXPLANATIONS AND REMARKS The data presented in this article is derived from a GfK Financial Market Data Service (FMDS)® survey. The mentioned survey is conducted within the GfK Omnibus® and
shares the same methodological approach. The survey addresses the general population of Serbia aged 15 years or more. The sample consists of 1,000 respondents and is designed to be nationally proportional and representative for the observed population. The survey method used for Omnibus surveys is face to face interviewing (F2F). Respondents are interviewed at their homes in the presence of the interviewer. Omnibus surveys are conducted in several waves during the year. The data presented in this article was collected in December 2006, November 2007 and November 2008. The article examines the population of bank clients, not the whole population of Serbia. Bank clients are defined as respondents that have declared themselves willing to co-operate with at least one bank. They are exempt from the sample and observed as a single subgroup. DECIDING AN ASPECT GfK Financial Marked Data Survey® survey examines many of the various aspects of co-operation with banks. For the purposes of this article we have decided to examine five of them: client share, main client share, appeal, trust and satisfaction. Client share is the share of each bank within the total number of bank clients. One respondent can co-operate with more than one bank. The main client share is the share of each bank within main clients. Main clients are respondents that have declared to have a main bank (the main bank is the bank they mostly co-operate with). One respondent can have only one main bank. Appeal and trust are measured as general aspects of the image of all banks (respondent does not need to bank with them). Satisfaction is measured as the satisfaction with the branch office of the main bank the respondents visits most often. Five point scale ranging from 1, which is “complete
dissatisfaction”, to 5, which means “complete satisfaction”, is used to evaluate satisfaction. When thinking about how to tackle the issues of banks’ origins, we decided to go ahead with an interesting approach: to examine these aspects not among individual banks but among bank groups defined by their country of origin. We have indentified five bank groups, apart from the domestic scene, that operate on the Serbian market: Italian, Austrian/German, Greek, French and banks originating from other countries (Slovenia, Belgium, Hungary, U.S. and Russia). ASKING THE QUESTIONS Respondents were asked to name the bank they co-operate with or they find especially appealing. They were not asked to name the country of origin. This makes the findings more accurate and authentic, as the banks were only grouped according to their country of origin in the later data processing stage. Certain banks changed their country of origin during the observed peri-
The client share of Greek and Italian banks experienced an upturn in 2007, but further growth was not revealed in 2008 od, i.e. Vojvodjanska banka was a Serbian bank in 2006, but had become a Greek bank in 2007. As such, banks were grouped according to their country of origin during the year in question. This is the most accurate methodological approach to gain the proper findings and insight. CLIENT SHARE The area of enquiry we chose to start with is client share. It is always good to start with the client share and see the basic layout of the market. If we observe client share
in November 2008 we can see that Serbian banks hold the first place. Around one half of all bank customers were clients of Serbian banks. It appears that French banks and banks originating from other countries attract significantly less clients. The client share of Serbian banks experienced significant decline in 2007. However, the downturn stopped and the client share of Serbian banks stabilised at around 50 per cent of client share in 2007 and 2008. The client share of Greek and Italian banks experienced an upturn in 2007, but further
Client share (source: GfK Financial Market Data Service – FMDS®)
Main client share (single response)
Appeal
Source: GfK Financial Market Data Service - FMDS®
Source: GfK Financial Market Data Service - FMDS®
Source: GfK Financial Market Data Service - FMDS® Guide to Serbian Banking Sector / May 2009 49
SURVEY ent than was the case in 2006. The main client share of Serbian banks dropped significantly in 2007, while the main client share of Greek, Italian and French banks experienced growth compared to 2006. German and Austrian banks maintained the same main client share during the entire observed period. There were no significant changes in main client share among observed bank groups in 2008 compared to 2007. As client share acts as a driver of main client share, it is natural to conclude that 2008 was the year of stabilisation for main client share.
Most sensitive issues of co-operation with banks is trust. Our data from November 2008 shows that a third of bank clients declared that they trust Serbian banks the most growth was not revealed in 2008. Austrian and German banks maintained the same client share during the entire observed period, while French banks experienced upturn in 2007 and downturn in 2008. After experiencing growth in 2007, banks originating from other countries did not experience any further incline in 2008. The general conclusion would be that 2007 was a good year for all banks apart from domestic ones. Serbian banks accounted the largest loss of client share in 2007, while the majority of foreign banks experienced growth in the same year. It appears that 2008 was the year of stabilisation of client share within the banking industry.
MAIN CLIENT SHARE The main client is a bank client that has declared to have a main bank. A main bank is the bank the respondents mostly does business with (eg. visits its branch offices more often, uses more products of the main bank, etc.). In November 2008, Serbian banks held the first place in main client share. Four out of every ten bank clients declared one of the Serbian banks as their main bank. Greek and Italian banks share second place, while French bank and banks originating form other countries seem to have significantly less main clients. The market situation in 2008 didn’t see significant change in comparison to 2007. However, the situation in 2007 is significantly differ-
Trust (single response)
Satisfaction with the main bank
Source: GfK Financial Market Data Service - FMDS®
Source: GfK Financial Market Data Service - FMDS®
50 Guide to Serbian Banking Sector / May 2009
CONSUMER APPEAL Another interesting area of observation is appeal. Sometimes people co-operate with banks even thought they do not find them appealing. Let’s see how this turned out when observing our bank groups.Even though the appeal of Serbian banks has declined, Serbian banks remained the most appealing banks in November 2008. Italian and Greek banks experienced growth of their appeal throughout the entire observed period, while the appeal of Austrian and German banks experienced growth in 2007 and then stabilised. The appeal of French banks dropped in 2008, compared to 2007. Serbian banks seem to have remained the most appealing during the entire observed period. However, it is clear that foreign banks – particularly Italian and Greek banks – are becoming more appealing over time and that the gap between domestic and foreign banks has a tendency to decline. TRUST One of the most sensitive issues of co-operation with banks is trust. Our data from November 2008 shows that one third of bank clients declared that they trust Serbian banks the most. This is a nice thing to hear, especially considering the horrible experiences of the not so distant past when the country was burdened by a weak economic and financial system. However, is it safe to say that confidence in domestic banks has returned? We can definitely see significant signs of a return of confidence in the banking sector in general. Firstly, the number of respondents declaring that they do not know or trust any of the banks significantly dropped in 2007 compared to 2006. Secondly, during the entire observed period a third of respondents declared that they trust Serbian banks the most. This is especially important, considering that many of domestic banks turned foreign through mergers and acquisitions. Regardless of
Dear colleagues and potential clients, it is our honor to introduce ourselves to you: that, Serbian banks maintained a high client and main client share. It is especially interesting to observe trust and other observed aspects in 2007. During that year Serbian banks recorded the greatest losses of client share, while trust in Serbian banks simultaneously remained the same. Therefore, it appears that Serbian banks maintained the same level of confidence over time among their clients and, thus, we can conclude that overall trust in domestic banks is returning.Observing trust in 2007 shows us that only Greek banks experienced the growth of their appeal compared to 2006, though this occurrence may be a consequence of the acquisition of Vodjvodjanska banka by the National Bank of Greece at the end of 2006. Almost all other bank groups did not report any significant changes during the observed period and maintained the same levels of trust as in 2006. The only exception are the Italian banks, which have experienced growth in levels of trust in 2008, compared to the starting year of 2006. SATISFACTION How satisfied are bank clients in Serbia generally? Do they think the quality of services has improved with the arrival of foreign banks or have local clients expected too much? Our measurement of satisfaction with the main bank shows that, apart from French banks, there are no significant deviations among observed bank groups in terms of satisfaction with the main bank in November 2008. It appears that satisfaction with French banks is somewhat lower than satisfaction with other observed bank groups. However, the observation of satisfaction during the period in question can reveal an interesting trend. It appears that there is tendency of falling levels of satisfaction, which is especially visible when comparing 2008 to 2007. Austrian/ German, French and Italian banks experienced a decline in the satisfaction of its main clients during the entire observed period. Even though the decline in satisfaction is not that sharp, it would be good to avoid further developments of the negative trend visible throughout the past three years. CONCLUSIONS At the beginning of the article no one could know precisely what the data would reveal, though anyone could assume and speculate. Some thought that domestic banks would not record such good performances within the observed aspects. I was among them. However, in the end Serbian banks have the largest client share and the largest main client share. They are playing the game on their home field and it is natural that they have an advantage over foreign competitors. Domestic banks do not have any other market to fall back on and every player that comes to Serbia will find a fierce competitor in them. The most serious foreign players appear to be Greek and Italian banks. These banks are trusted and attract large numbers of clients. Good entry tactics and strong brands have significantly influenced the good performances of these banks. It is going to be especially interesting to monitor the further development of the Serbian banking market and the presence of foreign banks. The global downturn may act as an accelerator and speed up the expected consolidation of the banking industry, but we will see which of these banks and countries will remain present, and to what extent, on the Serbian market. Another question is as what will happen with the domestic banks and their client share? Will they develop operational and marketing resources to counteract external competition? We sincerely hope so.
IEFK BANKA A.D. Banja Luka – REPRESENTATIVE OFFICE BELGRADE Representative Office of IEFK BANKA is located in the centre of Belgrade and it operates within IEFK BANKA A.D. Banja Luka. The Representative Office started its operations in May of 2008, and it is celebrating its first anniversary of work these days. It was founded with the aim of promoting the services of the bank by achievement of business contacts and connecting companies from the Republic of Srpska and the Republic of Serbia. The cooperation with numerous companies from the Republic of Srpska and the Republic of Serbia as well as the co-operation with commercial banks speaks the best about the importance of the representative office and our serious appearance at the banking market. Due to the fact that IEFK BANKA A.D. Banja Luka is the first bank in the territory of former Yugoslavia which was founded with the participation of Russian capital, one of the primary goals of the bank is connecting with companies which operate with partners from Russia and Russian companies operating in the Republic of Srpska and the Republic of Serbia. IEFK BANKA A.D. Banja Luka offers a wide range of banking services both for legal entities and for individuals. We invite you to visit us and see for yourselves the high quality and promptness in performing of all banking services.
We Are Expecting You!
IEFK BANKA A.D. Banja Luka; Vase Pelagića 11 a, 78 000 Banja Luka, Bosnia and Herzegovina; Phone: 00387 51 211 400 Fax: 00387 51 231 432; E-mail: office@iefkbanka.com IEFK BANKA A.D. Banja Luka Rep. Office; Nemanjina 40, 11 000 Belgrade, Serbia; E-mail: office@iefkbanka.rs; www.iefkbanka.com Guide to Serbian Banking Sector / May 2009 51
SURVEY RISK MANAGEMENT IN BANKING BEYOND THE CREDIT CRISIS
NEVER AGAIN? Banks are being urged to grasp the nettle of risk management to avert a repeat crisis, but a KPMG survey indicates that too few are planning fundamental changes to risk management structures
D
espite the continued fall-out across the banking industry from the financial downturn, it appears that too few institutions are planning to make fundamental changes to their risk frameworks.
52 Guide to Serbian Banking Sector / May 2009
This claim comes from KPMG International, as they unveil the findings of a new survey into apparent risk management failures which many in the industry are only now coming to terms with. The results show that 90 per cent of the 400 banking executives surveyed by
the Economist Intelligence Unit on behalf of KPMG have carried out, or plan to carry out, a review of the way they manage risk, yet only 42 per cent of respondents have made, or plan to make, fundamental changes to their risk processes.
These results suggest that many banks feel that the required medicine may not be as severe as some might think, or that the full extent of the fall-out is yet to be realised. Commenting on the results, Richard Cysarz, Head of Financial Services at KPMG in Central & Eastern Europe (CEE), said: “This is a timely survey of 500 global banking executives to explore any organisational contributors to credit crisis. In many CEE countries that have recently reformed banking sectors risk management and regulation, in recent times, have featured more prominently than they may have in the more mature banking sectors of the western world.” According to Cysarz, the CEE financial sector has been fairing relatively well, so far. “Whilst many of the banking sectors in CEE have undoubtedly been in some way affected by the liquidity squeeze and seismic shifts in foreign exchange rates, they have so far managed to largely escape exposures to levels of toxic debt on the scales seen in other countries.” Nigel Harman, of KPMG Advisory and a partner in the UK firm, added: “There is little doubt amongst the banks surveyed that a lack of discipline within risk management was a sizeable factor behind the credit crisis. However, they seem less forthright in their views on what sort of action this necessitates. What we have is a fairly non-committal response, with just over four out of 10 respondents committing their organisation to the sort of fundamental changes that a crisis of this magnitude merits. “On a more positive note, at least the root of the problem is being acknowledged. In the immediate aftermath of the crisis first taking hold, many respondents felt it was all too easy to blame a culture of chasing further revenue in a time of easy credit or remuneration policies which did not encourage sustainable, long-term shareholder value. In some ways, those were red herrings; contributory factors for sure, but factors which should have been addressed and possibly curtailed by a robust risk management framework. I believe a key part of the healing process will be to overhaul the whole framework for managing risk; not just to focus on isolated issues. Without that complete overhaul, the danger remains that this will happen all over again.” The KPMG research highlights several areas in which changes will need to be made: the lack of risk expertise at Board level; communication between the risk function and the rest of the business; the relative lack of influence exerted by the risk function. The third of these three points can be traced directly back to the fact that 76 per cent of
“Banks should focus on making more qualitative judgements on the risks attached to any major strategic decision.” respondents believe that risk is still stigmatised as nothing more than a support function. However, seven out of 10 believe that the function holds more influence than two years ago, while even more believe the way they manage risk can be a sort of competitive advantage. In addition, Chief Risk Officers are now believed by many respondents to be exerting greater authority over the key areas of strategy development and capital allocation. However, the tag of being a back-office support function should be cast off if the risk function is to progress still further. vThe issue of Board level risk expertise appears to be thorny. While there is an acceptance of a lack of expertise in this area, few respondents felt it was a serious contributory factor behind the banks’ recent troubles. A lack of expertise is even more evident among the non-executive director community, yet there appears to be a distinct lack of appetite to tackle this shortcoming. As for the communication issue, less than 20 per cent believe that a lack of communication across organisational silos is an important contributory factor. However, further questions revealed problems in communicating risk policies through to an operational level. In this regard, there is possible scope for improved interaction with the business units, as well as with the internal audit team and the audit committee. Harman continued: “What this research helps to show is that banks should be instilling a robust culture which can address risk governance at all levels. Such a culture effectively requires employees to become risk managers, but such a change also requires employees to understand the organisation’s risk appetite.
“The modern structure for managing risk should be based on three lines of defence; the business unit people ‘on the ground’, the risk management function and then internal audit. For an appropriate culture to come into being, senior management should provide a strong tone from the top. A forthright management lead on this issue can help to reinforce the point that this is not a peripheral issue, the handling of which can be delegated to regulators or middle management. “Banks should focus on making more qualitative judgements on the risks attached to any major strategic decision. This approach recognises the fact that banking product propositions have now become so complex that quantitative methods on their own may not be able to do justice to a risk assessment in a volatile and unpredictable market. Sharing his opinion on the cause of the global downturn, Harman said: “It was poor judgement that brought this crisis upon us – with apparent excessive focus on shortterm gain and a lack of healthy scepticism. We must, therefore, hope that levels of judgement take a turn for the better. Grasping the nettle of instilling greater discipline into the risk management process would be a good first step in demonstrating this,” concluded Harman. KPMG in CEE’s Richard Cysarz believes the sector’s global experiences offer food for thought for the region’s financial sector. “Organisational contributors to the credit crisis should be of great interest to CEE bankers and regulators in order to continue avoiding any large scale exposure to toxic debts and the vagaries they bring to the sector.” Guide to Serbian Banking Sector / May 2009 53
INTERNATIONAL FINANCING: EBRD
Hildegard Gacek, Petar Škundrić, H.E. Josep Lloveras, Draginja Đurić, Mark Tribble
New investments Hildegard Gacek, EBRD Country Director for Serbia: “We’re glad to see that Banca Intesa is the first bank to join the EBRD and the EU in promoting energy efficiency.”
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he European Bank for Reconstruction and Development (EBRD) and Banca Intesa Beograd recently signed a contract that sees the EBRD grant its first credit line to Serbia within the framework of the programme “Western Balkans Sustainable Energy Credit Line Facility”. Funds from this credit line will be used to finance specific programmes implemented by privately owned companies in the field of energy efficiency and renewable energy sources. The EBRD’s role in this pioneering programme is to provide loans to the banking sector which, in turn, will grant loans to private companies. This credit line is part of a wider Western Balkans programme, implemented by the European Commission and the EBRD, to provide financial support of €60 million to the banking sectors of Serbia, Bosnia & Herzegovina, FYR Macedonia and Montenegro to facilitate the granting of loans to companies seeking to implement energy efficiency and renewable energy projects. Advancing energy efficiency and promoting renewable energy projects will lead to an alleviating of the effects of climate change on businesses. 54 Guide to Serbian Banking Sector / May 2009
These subsidies were enabled thanks to EU financial assistance of €13.5 million through its IPA programme. The Union’s IPA programme is the main conduit for financial and technical co-operation between the EU and potential accession countries. The EBRD will finance the continuation of this technical co-operation through its multi-donor fund for Western Balkan countries, which provided a €2.5 million grant for this purpose. The EBRD will also conduct technical consultations and offer similar assistance to banks participating in this programme. The grant is aimed at assisting Serbia in overcoming obstacles hindering investments in energy efficiency and renewable energy projects. Hildegard Gacek, EBRD Director for Serbia, says: “This favourable credit line is an important part of the EBRD’s strategy in Serbia, while increasing investments in energy efficiency also means simultaneously supporting the Serbian banking sector. We are glad to see that Banca Intesa is the first bank to join the EBRD and the EU in promoting energy efficiency and a renewable energy initiative in Serbia.” Head of the European Commission’s Delegation to Serbia, H.E. Josep Lloveras, gives his support to what he called “extraordinary co-opera-
tion between the EU and the EBRD which will help Serbia’s development”. According to H.E. Lloveras, “the excellent experiences that we have had on similar projects implemented together with the EBRD in Romania and Bulgaria encouraged us to launch a new energy efficiency project in Serbia too”. Speaking of her bank’s involvement, Executive Board President of Banca Intesa Beograd, Draginja Đurić, says: “As a bank that looks to the future and has the principles of social responsibility in mind, Banca Intesa has recognised this initiative as an excellent chance for the implementation of energy saving projects that will contribute not only to the development of the business sector, but also to the whole society.” She continues: “I am really glad that we are the first bank in Serbia that will be involved in the implementation of this project, together with the EBRD.” This project, she says, “is of great significance for successful operations and the development of domestic companies, as well as for the overall economic development of our country. “This credit line is just a first step in our endeavours to highlight the importance of envi-
INVESTING IN RETAIL
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Eric Berglof ronmental awareness through concrete examples,” concludes Banca Intesa Serbia’s CEO. According to the project plans, the new EU / EBRD credit line for financing sustainable energy projects in the Western Balkans will become as successful as similar projects already implemented in neighbouring Bulgaria and Romania, as well as in Ukraine and Slovakia. The EBRD is the biggest institutional investor in Serbia, having invested €1.42 billion in 81 projects across Serbia to date. Thanks to its co-operation with numerous partners, the EBRD’s placements in various projects in Serbia amount to over €3.1 billion. During the course of this year, according to plans announced at year’s end 2008, the EBRD will grant Serbia loans worth a total of at least €300 million. However, speaking to press agency Tanjug, EBRD Chief Economist Eric Berglof said that the EBRD could invest an even higher amount in Serbia in 2009 than the figure announced earlier, depending on the quality of the projects the bank will review before granting new loans. “The investments made by the EBRD in the wider region, which encompasses a total of 30 countries, will be some 20% higher next year. That will be the highest percentage ever,” notes Bergloff, adding that in Serbia the EBRD’s capital will be invested primarily in Corridor 10 and other infrastructure facilities, including Serbian Railways, the financial sector and agriculture. He also said that the bank
he EBRD made its first investment in Serbia’s retail sector back in September 2008. The investment, worth €70 million, was made in Croatian retail chain IDEA’s expaansion in Serbia. According to EBRD officials, that project was carried out with the goal of supporting a regional investor in Serbia and developing Serbia’s retail sector, especially outside Belgrade, where retail activities are somewhat weaker. Furthermore, this project was devised to improve relations with local suppliers. was considering increasing its stake in Serbia’s Komercijalna banka and that the EBRD’s priority was to secure greater capital in those banks where it had a share. Bergloff, also a special advisor to EBRD President Thomas Mirow, says that the bank will directly invest in companies too in the following period. As a good example, he cited a US$15 million loan granted to company Via One, which develops cheap technologies for international telephone calls and plans to open a software centre in Novi Sad. Recognising Serbia’s efforts to carry out reforms, particularly in the financial sector, Berglof also said that Serbia was being
over Serbia too,” bearing in mind that most of the banks operating in Serbia have parent banks in Europe. Commenting on foreign investors’ reactions to the EBRD’s investments in Serbia, Berglof said that one of the bank’s aims was to “secure the stability and transparency of the Serbian financial sector”. “The EBRD’s role in promoting stability and transparency is important for foreign investors, giving them a sense of security and reduced risk, which is a prerequisite for the arrival of fresh investments, particularly of companies that are unfamiliar with doing business in the region,” Berglof concludes.
EBRD President Thomas Mirow: “The EBRD plans to invest between 800 and 900 million Euros annually in the Western Balkan countries.” given an opportunity to further reduce costs associated with running the financial system, despite the global financial crisis, and improve risky capital assets’ management. “The possibility of Serbia’s economic development halving this year is not as important as the country’s financial system remaining strong,” says Berglof, “although Serbia is not an EU member, whatever happens in the EU will have a decisive influence
LOAN FOR BYPASS
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Thomas Mirow
he EBRD has granted a loan of almost €80 million to public enterprise company Putevi Srbije (Serbian Roads) for the implementation of a project entitled “Belgrade Motorway and Bypass”. The money will be spent on reconstructing existing facilities, such as secondary roads and the Gazela motorway bridge, and constructing a Belgrade bypass ring road.
In September last year, EBRD President Thomas Mirow said that the bank’s priority would be to invest in infrastructure projects, financial sectors and economic development. Mirow also said that the EBRD would co-invest in key road building projects, including Corridor 10, as well as in rail, energy, water supplies and agriculture projects. “The EBRD plans to invest between 800 and 900 million Euros annually in the Western Balkan countries,” Mirow told Beta press agency. Between April 2001 and today, the EBRD has funded 105 projects in Serbia worth a total of €1.3 billion. The bank invested €326 million in 2007 alone. Of the €1.3 billion total, €551 million was invested in infrastructure, €344 million in the business sector, €308 million in the financial sector and €172 million in the energy sector. Guide to Serbian Banking Sector / May 2009 55
BANKRUPTCIES
ONLY THE STATE TO GAIN
The bankruptcy procedures of the four former biggest Serbian banks enters its eighth year By Marica VUKOVIĆ
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ompleting the bankruptcy procedures for Serbia’s one-time largest four banks – Beogradska Banka, Beobanke, Jugobanka and Invrstbanke – is still not completed, despite the fact that seven full years have passed since padlocks tolled the death knell of the four banks. Only the banks’ creditors are likely to suffer, though, as administrators are struggling to pay off even a fraction of the banks’ receivership debts. However, it is now claimed that administrators will soon be able to pay off 10 to 15 per
sion to close these banks was brought jointly by then vice president of the federal government and chairman of the Bank Rehabilitation Agency, Miroljub Labus, then governor of Serbia’s central bank (the National Bank of Serbia), Mlađan Dinkić, and then finance minister, Božidar Đelić. It was concluded at the time that bankruptcy procedures would be the only solution for these four banks’ customers and creditors, who were sustaining losses on a daily basis. The banks’ unpayable debts to foreign creditors, accumulated since 1990, had reached the sum of 3.5 billion Deutschmarks. And, prior to the closures of the banks, those creditors
The business premises of the banks are being leased out to pay for the bankruptcy procedures cent of the bank’s total debts, estimated at more than five billion euros. The process of reordering the state of the Serbian financial sector began precisely with the closure of those four banks on 3rd January 2002, following the failure of a year-long attempt to rehabilitate the four banks. The deci-
brought civil charges demanding repayment of €1.7 billion. Expert circles declared the bankruptcies of Beogradska Banka, Beobanka, Jugobanka and Investbanka as the end of political banking, because those banks had operated according to the instructions of the then iron regime of
OBLIGATIONS VIS-À-VIS THE STATE
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he financial obligations of the four banks vis-à-vis the Republic of Serbia – calculated on the basis of old foreign currency savings whose payment the state has assumed – amounts to €173 million. By the end of last year, the state – as the first creditor in line to be repaid – received €184 million, which includes interest. As such, on that basis the commitments of Beobanka, Jugobanka and Beogradska Banka to the State have been completely settled.
56 Guide to Serbian Banking Sector / May 2009
Slobodan Milošević, himself a one-time director of Beogradska Banka. The banks had approved loans to companies for the payment of salaries, which were never returned. This was one of the ways the Milošević regime bought social peace at that time. Some 8,500 people were employed by the four banks. Following several waves of redundancies, the workers organised daily protests for more than a month. Around 200 of those former employees are now engaged in the implementation of bankruptcy procedures, while the remaining workers were given the choice of three redundancy packages. Most of them later found employment in the country’ newly-opened banks, as evidenced by the fact that employment in the Serbian
PAYMENTS TO CREDITORS
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he Agency for Insurance Deposits insists that 100 per cent of obligations towards citizens, to cover their lost savings, has been settled with payments of 1.4 billion dinars. At the end of May the partial payment of secondary creditors of Beobanka is expected to start. These creditors should first receive 10 per cent of their claims. By year’s end 2008, the claims of creditors totalled around €550 million. Bankruptcy receivership managers of the four banks are checking applications for contested claims worth €4.8 billion, while disputed application claims are being assessed by the competent commercial courts.
the time was the threat that foreign creditors would not only withdraw their remaining capital from Serbia but would also cause a flood that would drown a good part of the Serbian economy, because of credits that had not been returned. The announcement of bankruptcy procedures confirmed that payments from the receivership process would be first offered to clients/depositors, then the State, then domestic trustees and, only at the end, foreign creditors – amongst which were Italy company Fiat and Greece’s Mitilineos. Completing the bankruptcy procedures of these banks is the responsibility of the Agency for Insurance Deposits, which is leading the bankruptcy procedures of more than 16 banks in Serbia, mainly closed after 2001. According to the agency, completing the bankruptcy procedures of Investbanka and Beobanka is expected to take another two years, while finalising the procedures for Beogradska Banka and Jugobanka can’t even be forecast, because the duration of procedures depends on the bankruptcy agent of
Also awaiting sale is Jugobanka’s headquarters in Belgrade and holiday resort on Kopaonik Mountain, while Beogradska Banka’s Belgrade building, Palata Albanija [Albania Palace], covering an area of 3,752m2, also remains unsold – as do facilities on Kopaonik owned by Investbanka. The Agency for Insurance Deposits admits that it’s unsure what price was paid for the four banks’ art works, mostly paintings, despite the public being informed that these works of art were sold at the expense of mass bankruptcy. According to media reports, the four banks owned 732 works of art, among which were 30 paintings that had been shortlisted for declarations of protected cultural heritage items of the State. To date, most of these works, which once adorned the walls of directors’ offices, have been sold at auction. The business premises of the banks are being leased out to pay for the bankruptcy procedures, which further complicates the ownership verification processes not only of prop-
According to the agency, completing the bankruptcy procedures of Investbanka and Beobanka is expected to take another two years banking sector has increased from 20,000 to 32,000 since 2000. The 2002 assessment was that the rehabilitation of those four major banks would require around 8.5 billion Deutschmarks, while during the long process of rehabilitation the banks’ employees would cost the Serbian budget around 500 Deutschmarks each per month, which would total around 1.2 billion dinars. At the end of November 2001, the losses of Beogradska Banka amounted to 3.8 billion Deutschmarks, Beobanka owed 1.4 billion, Investbanka owed a billion and Jugobanka was indebted by more than two billion Deutschmarks. The only reason the banks were not closed at
those banks in New York and Cyprus. The bankruptcy proceedings have so far led to the sales of 358 real estate properties, owned by the four banks, for a total of 5.7 billion dinars. Awaiting sale is a further 75 properties, but we cannot predict when they will be offered for sale because they are either lacking documentation or are subject to legal proceedings. Included in this property is construction land on Belgrade’s Slavija, covering an area of 4,500m2 (owned Beobanke), as well as the Zlatarić cattle-bulking farm in Valjevo, covering a total area of 8,885m2, and objects that Beobanka took over as the largest creditor of bankrupted IMT – factory for casting and models, covering a total area of 61,650m2.
erty owned in the U.S. and Cyrpus, but also property owned by the banks in the former Yugoslav republics and even in the province of Kosovo. The procedures before the courts are lengthy, according to the Agency for Insurance Deposits, bearing in mind the complexity of litigation and the fact that courts are overburdened. Application claims are being considered within the complete investigation and will only be determined at the moment the all court proceedings are completed. Interestingly, not a single charge has been brought against the former directors of the four banks, despite the fact that numerous pieces of evidence confirming their illegal operations have been forthcoming. Guide to Serbian Banking Sector / May 2009 57
INTERVIEW NEBOJŠA DIVLJAN, MANAGEMENT BOARD CHAIRMAN AND CEO OF DELTA GENERALI OSIGURANJE
Insurance withs “The number of insurance companies is definitely not going to be halved, since global players and regional leaders are operational in Serbia and no mergers are expected.” By Marica VUKOVIĆ Photo Slobodan JOTIĆ
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t seems the economic crisis so far hasn’t affected the stability of the insurance sector or reduced the business operations of the 24 insurance and re-insurance companies operating in Serbia. “The most important thing for this sector in a time of crisis is for the economy’s liquidity to improve and for the macroeconomic environment to be as stable as possible,” says Nebojša Divljan, Management Board Chairman and CEO of Delta Generali Osiguranje. How would you assess the 2008 business year for insurance companies and how
NEW PRODUCTS
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very year we launch a new project. This year will be no different. Our clients that use private health insurance, which include foreign companies, foreign representative offices and embassies, are going to be given an opportunity to be treated in a diagnostics clinic that Delta Generali plans to open in the latter half of the year.
58 Guide to Serbian Banking Sector / May 2009
much have plans devised before the the financial crisis been implemented? Total premiums went up by 16 per cent in 2008 to reach 52 billion dinars. This is a good growth rate and marks a continuation of growth that ranged between 15 and 20 per cent in the last two to three years. So, in 2008 the crisis failed to bring down overall indicators of the volume of business operations. However, naturally, there was a certain slowdown in the last quarter. We will see how much the crisis has affected our sector once the time for the end-of-the-year accounts comes, particularly when we think of a loss in the value of shares that insurance companies, as institutional investors, have in their portfolios. Bearing in mind that this is a decrease of shares’ fair value, liquidity hasn’t been essentially reduced. Although it is quite clear that the current values of shares on the stock exchange are far below the fundamental indicators of their issuers, we should note that the insurance industry wouldn’t falter much even if the share value were to remain at the current level. As such, policyholders shouldn’t worry because all insurance companies are solvent and there is no threat to their solvency. How do you think the crisis will affect the insurance sector in the coming period? When it comes to the scope of activities, the insurance sector is less susceptible to crisis and recession and is, thus, far more removed from the crisis than, let’s say, the auto industry or the real estate sector. The sale of some types of insurance has fallen, such as all risk insurance options, which have been the generator of development in the non-life insurance sector. The affects of the crisis are visible in the sale of life insurance policies, as people today aren’t buying things they need for everyday living and usually postpone making a decision about their long-term investments for better times. Overall, I don’t expect premiums growth in 2009 to go above a single digit, which is actually a good result considering anticipated changes to the national GDP. What can the state do to help the industry overcome the crisis more easily? At our first meeting with the Finance Ministry to address the crisis, our message was
tanding the crisis simply “keep the banks safe”. This was our request, because both the insurers and bank shareholders have significant deposits in private banks. As you know, the banking system is healthy and it is rather the economy’s liquidity that concerns us now. When corporate clients are illiquid, they are usually late settling their financial obligations, including insurance premiums. The price of insurance has gone down a lot and, coupled with the failure of corporate clients to pay premiums regularly, this poses a serious problem to insurers. With regard to the legal framework, we think that Serbia’s 2005 law on insurance should be amended to a certain extent. Primarily, the law should be amended so there are no longer divisions of life and non-life insurers. Additionally, we would like to see substantially more flexible clauses regarding employment in insurance sales and we are confident that, under current conditions, this industry can provide jobs for several thousand people this year alone. There is that perennial question of having tax incentives for investments in life insurance but, realistically speaking, now is not the time to talk about that issue. Are smaller insurance companies managing to compete in this field and can we expect the consolidation of this sector, bearing in mind that total premiums are still under two per cent of the national GDP? Generally speaking, there is a chance of additional consolidation occurring, albeit on quite a small scale. The number of insurance companies is definitely not going to be halved, since both global companies and regional leaders are currently operational in Serbia and no mergers are expected. There are several smaller domestic insurers that are not going to be able to sustain their independence in the long term, since their owners will have no interest in staying in a business that is not profitable and is quite heavily regulated. The only domestic insurance company that has yet to be sold is Dunav osiguranje. Wouldn’t it be better for the industry as a whole and Dunav’s shareholders, including the state, if the company were to be sold? I’ve been asked this question a lot, but I have to refrain from dispensing any advice
“Overall, I don’t expect the growth of premiums in 2009 to go above a single digit, which is actually a good result considering anticipated GDP changes.” to the company’s owners or Dunav itself. Looking from the position of Dunav’s competition, I can say that it would be better for the insurance industry if the company was sold, since that would make for even better competition on the market. If I were in the state administration, I would have resolved all privatisation dilemmas with very simple reasoning: if a state-owned company, such as Telekom Srbija, brings dividends to its owner then I would be faced with a dilemma to accept a one-off payment from the sale at the cost of the stable dividends that I was getting. It all boils down to the sales price and how fast you need this new money. I wouldn’t think twice if a company was failing to bring dividends to the state and could be sold for a significant amount, though it’s true that I wouldn’t expect much interest to be shown in buying such a company at this moment. My estimate is that there is one in-
terested buyer that doesn’t come from Western Europe and is ready to pay. What are your company’s plans? Delta Generali plans for growth to reach 24 per cent in 2009, which is an ambitious number even for a stable economic environment and will be quite difficult under current circumstances. Still, our growth has been solid in the first few months of this year. Our strategy was never to grow at any cost, but to grow with profit. More precisely, our strategy is to develop new products and new distribution channels. Despite the crisis, we have managed to employ 350 new workers this year. We have also been developing our company in Montengro, but we have put our plans to set up a company in Republika Srpska (Bosnia) on hold for the time being because of an underdeveloped market and a crisis-induced drop in GDP. Guide to Serbian Banking Sector / May 2009 59
INSURANCE
MARKET RESIST “Twenty-two companies are currently operating in the Serbian insurance sector, three of which are only dealing with corporate reinsurance and one only insurance and reinsurance operations.”
By Aleksandra PETROVIĆ
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he Serbian insurance industry is stable in spite of the global financial crisis that is affecting an increasing number of financial institutions worldwide on a daily basis. The reason for this success despite the downturn lies in the fact that insurance companies in Serbia invest conservatively and in 2008 they managed to avoid risky investments that could have led them to the brink of disaster – as has happened with some of the world’s 60 Guide to Serbian Banking Sector / May 2009
The insurance industry in Serbia is not as affected by the economic crisis as most other financial sectors
insurance giants – or even total collapse – as has been the case with some European and international banks and other financial institutions. Savings in the form of insurance and insured funds were placed in the most conservative and solid securities – old foreign currency savings bonds – by the majority of insurance companies in Serbia last year. And their performance tended to be higher than expectations or within expected limits. Life insurance, which is the least developed and, simultaneously, the most prospective form of insurance in Serbia, had participation of about 10 per
ING THE CRISIS cent in last year’s total premiums, while the remainder of the market belongs to non-life insurance, primarily property and car insurance. However, Serbia’s insurance market participants admit that the closing months of 2008 saw a rise in hesitancy among clients considering buying life insurance policies, though they insist that there was no mass withdrawal of funds. According to Christoph Ratha, a member of the Management Board of Wiener Städtische Insurance, “The life insurance market in Serbia is still undeveloped compared to other countries in the region, but I am optimistic about the larger inflow of foreign investments in Serbia and the further development of this market. I don’t think the global crisis can last forever”. Adding that Wiener Städtische had recorded 16 per cent growth in premiums in 2008, Ratha said that global trends were seeing around 50 per cent of all insurance policies coming under the category of life insurance, in terms of the total sum of premiums, while that participation in Serbia is around 10 per cent. “In Serbia life insurance stands at around 11 dollars per capita, while in Bulgaria its $21, Romania $26, Slovakia $194, Poland $210 and in the Czech Republic its $261 per capita annually,” said Ratha. Describing the reasons for the stability of the insurance sector, Ratha highlighted the fact that not a single insurance company in Europe or the U.S. has closed, while around 20 banks have folded. “Investing in life insurance is safe and conservative. We offer savings in euros and we pay in Euros,” said Ratha. THE RISE OF CASCO INSURANCE During much of last year, non-life insurance options were the absolute leaders in terms of market share. And within the non-life bracket Casco motor vehicle insurance made the
Tax breaks and state support are essential to the further development of life insurance greatest advances in terms of improving its market share. This year, however, experts have announced that we can expect a complete turnaround. The reduction of financing for leasing companies and banks in Serbia will lead to a reduction of insurance operations, primarily in Casco vehicle insurance. Veselin Avdalović, an expert in the field of insurance and professor at the Banking Academy, explains: “Last year we saw a large number of new cars on the market, which are certainly the biggest users of Casco insurance: a great contribution to this growth was provided by the many car sold through leasing – for which, along with credit sales, Casco is mandatory. Furthermore, sales increased markedly in the second half of the year following the announcement of a reduction of customs duties on vehicles. However, this year will see the opposite occur, because
EVOLVING MANDATORY VEHICLE INSURANCE MARKET
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he two largest insurers in Serbia, Dunav osiguranje and DDOR Novi Sad, lost a combined total of eight percent of the mandatory vehicle insurance market in the first three months of last year. However, Dunav and DDOR remain the market leaders – both in terms of achieved premiums and signed contracts in this market segment – though the competition has begun to nibble away at the market pie. In the first three months of ’08, Dunav osiguranje realised about six per cent fewer premiums compared to the previous year. Dunav’s market share in this period fell by 32.14% to 26.3%, while the market share of second-placed insurer, DDOR Novi Sad, fell 27.29% to 24.69%. These two insurers’ falling trend in compulsory vehicle insurance continued in the second and third quarters of 2008.
the global crisis is being most felt by the auto industry. As such, Casco insurance will experience the greatest decline.”. Total premiums in the first quarter of 2008 was 13.6 billion dinars, or €165 million, which represents growth of 17.9% compared to the same period last year. Within the structure of premiums, non-life insurance premiums totalled 89.7%, while life insurance contributed 10.3%. Compared to the same period in 2007, noticeable growth was marked in the contribution of life insurance, which saw significant growth of 54 per cent during the observed period. The structure of premiums in the first quarter of 2008 was similar to the structure in the same period of 2007. Property insurance achieved the highest level of participation in total premiums, with 34.1%, followed by obligatory motor vehicle insurance with 26.1%. The type of non-life insurance marking the most significant increase in total premiums during the observed period is Casco insurance of motor vehicles up from 11.6% in the first quarter of 2007 to 14.3% in the same period of 2008, with an increase in premiums of as much as 44.5% compared to the first quarter 2007. Voluntary health insurance also continued to record significant increases in premiums, with observable growth from 3.2 to 3.8% in the first quarter of last year. The second quarter of last year saw positive trends and the development of the Serbian insurance market continue. Total premiums of Guide to Serbian Banking Sector / May 2009 61
INSURANCE LIFE INSURANCE
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very fourth person in Serbia is interested in life insurance, while another 19 per cent of surveyed respondents stated that they are interested but need more information. In absolute figures, two million citizens of Serbia are considering taking up a life insurance contract, while 1.5 million would like more information. As primary motivation for paying policies, more than half of respondents primarily highlighted concern for their children.
Casco vehicle insurance achieved the most significant growth of premiums in Serbia in 2008 28.7 billion dinars were 19.4% higher than premiums in the second quarter of 2007. The participation of non-life insurance of 89.6% of total premiums marked a reduction, but the non-life sector remained massively dominant. A significant increase in non-life insurance premiums, at a rate of 40 per cent, was again marked by Casco insurance, while voluntary health insurance grew at a rate of 29 per cent. Life insurance increased its participation in total premiums from 9.4 to 10.4%. The total premium of insurance companies in the third quarter of 2008 was 40.1 billion dinars, or €524 million, which confirms growth of 16.6% compared to the third quarter of ‘07. The participation of non-life in the structure of insurance premiums at the end of the third quarter was 89.1%, which is growth over the same period of ’07 of 15.9%. Simultaneously, in the same period life insurance recorded growth of 22.1%, from 10.4 to 10.9%. In this period also Casco insurance showed a trend of the most important increases of total premiums by 37 per cent, participating by 62 Guide to Serbian Banking Sector / May 2009
16.1% in this quarter. Significant premium growth of 23 per cent continued to be recorded by voluntary health insurance, observed by growth from 4.1% in the third quarter of 2007 to 4.3% in the same period of 2008. The report of Serbia’s central bank, the National Bank of Serbia (NBS), even notes the continued positive trend and development of the insurance market during conditions of financial tremors on the international market. The NBS’s recommendation is that players in the sector direct activities towards strengthening trust in insurers, providing greater transparency of products offered, taking responsibility for the education of potential clients and running operations responsibly. ESSENTIAL TAX BREAKS Although the insurance sector in Serbia is not as significantly affected by the world financial crisis as banking, a certain slowing of the development of the insurance industry can be felt, which is why during last year insurance companies asked the state and compe-
tent authorities to amend certain laws and regulations, as well as offering various incentives that would improve the business. Insurance companies agree on their positive assessment of the 2004 Law on Insurance, but they also concur that after almost five years in existence the time has come to update the law. The law assigns supervision of the insurance sector to the NBS, which was a good solution in 2004, because the central bank had already demonstrated itself as an excellent regulator of the banking sector. However, the situation has now changed and some insurers are still displaying bad practices. As such, insurers feel, part of supervision monitoring should be left to the industry itself, with the law regulated in terms of rights and regulatory codes of conduct, fair play and consumer protection, because, according to the assessment of insurers, market players have a much better sense of the situation on the market than any non-industry oversight body. Furthermore, they argue, some provisions of the existing law are too rigid, especially those regarding who is able to offer insurance, and thus licensed insurance traders should be allowed to sell insurance is an additional interest and not their only business, as is the case at present. The adoption of the law on compulsory transport insurance should also be one of the basic requirements of participation on the market because, insurers insist, there is no longer any reason for delay. In this way the sale of insurance products at points of sales offering other complimentary services, such as technical vehicle services, should be legalised. Insurance companies in Serbia have been seeking assistance from the state for the past few years to help stimulate the growth of personal insurance types, such as health, pension and, above all, life. A tax reduction for life insurance would be particularly important in the current situation caused by the global economic downturn. However, the Serbian Ministry of Finance – the relevant ministry for the insurance sector – has confirmed on several occa-
sions that, although such a tax break is more than necessary, such a reduction should not be expected – at least not this year. According to Slobodan Ilić, State Secretary in the Ministry of Finance, “There is great pressure to ease taxes, thus it is realistic to assume that benefits for life insurance will not be in the 2009 plan. However, I suggest that, together with the insurance companies, we define their requirements in the coming period and determine precisely what is doable so we can pass that into law and ensure it is found in the budget for 2010.” Ilić added that he expected the law on compulsory transport insurance to be passed by the middle of this year. MARKET PARTICIPANTS Twenty-two companies are currently operating in the Serbian insurance sector, three of which are only dealing with corporate reinsurance and one only insurance and reinsurance operations. Joining this competitive market in the last year were Slovenia’s AS Osiguranje – concentrating on non-life insurance, AIG Life – bolstering the life insurance sector and reinsurance house Wiener RE. The fate of U.S. company AIG, currently in the focus of public interest worldwide as a result
NEW PRODUCTS
T
he business results and new products of insurance companies in Serbia confirms daily that they are successfully fighting the crisis. Accordingly, during last year and the first part of 2009 insurance companies have begun introducing various products tailored to suit current conditions. Among them are numerous types of savings insurance with guaranteed profits, as well as property insurance adapted to the needs of ordinary citizens and insurance with significant discounts for SMEs. At the same time, more and more insurance companies are developing a new sales channel in co-operation with commercial banks, as well as offering insurance through the Internet.
of the tremors that recently hit international financial markets, has been of interest to the Serbian media. The company’s leading figures, however, insist that there is no cause for concern regarding the situation affecting its head office in America. Experts believe that the situation affecting the world’s biggest insurance company will not have negative consequences for the Serbian industry, nor will it jeopardise the work of ‘AIG Life’ in Serbia. However, they do believe that there will be certain initial resistance from potential clients of this insurer. “I am convinced that there is no danger; that this house (AIG Life) will soon emerge from the crisis and there is no danger for its operations in Serbia. AIG Life was established here
according to local laws and with specific capital as a separate company. It is true that the parent company guarantees its stability and believe that will be so. Initially, they will certainly encounter public resistance and mistrust, but this is a purely psychological effect and it will not last long because it is unfounded,” says insurance expert Avdalović, adding that the Serbian market is very important for this company and, thus, it will not gamble. According to the current ownership structure of players in this sector, most companies are in majority foreign ownership, 15 of them, while seven companies are majority owned domestically, of which one – Dunav osiguranje – is still under state-social ownership.
Guide to Serbian Banking Sector / May 2009 63
INTERVIEW GORDANA DOSTANIĆ, DIRECTOR OF THE BELGRADE STOCK EXCHANGE
Falling trade By Ana STOJANOVIĆ
L
ast year was marked by a fall in trading levels on the Belgrade Stock Exchange. We spoke to Gordana Dostanić, Director of the Belgrade Stock Exchange (BSE), to find out what is causing the fall in trade and what can be expected in the upcoming period, particularly considering the impact of the global economic downturn.
“Economic recovery will mean the recovery of the stock exchange, while a careful attitude towards the development of Serbia’s capital market guarantees the future position of the Belgrade Stock Exchange as a place where capital comes together to further the economic development of the country.”
BELEXLINE
“B
enchmark” index BELEXline had a correlation in movement with BELEX15, with a somewhat weaker oscillation and an annual decrease of 69.08% covering more than 80% of regular trade in shares. The annual minimum was also recorded on 22nd December, with the level of 1,078.47 indexed points.
64 Guide to Serbian Banking Sector / May 2009
How would you assess the 2008 tading year on the BSE? During last year a drop in activity on the BSE recorded, thus released information regarding the fall of trade doesn’t come as a surprise to the public. Last year the BSE achieved a total turnover worth 71.8 billion dinars, or more than €882 million, which represents a significant reduction in trade compared to 2007. Falling trade liquidity illustrates the total number of completed transactions, which was 119,001 during 2008 – as much as 182,000 fewer transactions than in 2007. If you monitor fluctuations of monthly turnover value and the number of transactions, you’ll note the that the deepening global financial crisis is reflected on our capital market through reduced interest in trade, as it was only in the second half of 2008 that we started witnessing significant reduction of trade and transactions. From the aspect of the issuer, the structure of total trade in 2008 is very similar to the 2007 structure, as the participation of companies in relation to the previous year dropped by less than one percentage points, while banking sector shares increased their participation by 40.4%, while simultaneously the most significant fall was recorded in securities issued by the State (bonds of the Republic of Serbia). Looking at total trade carried out on the BSE in the last three years, one can see the extreme dominance of results realised the record year of 2007, while last year’s results were weaker than 2006 and make up just a fifth of the three-year trade figures.
Did shares also comprise a dominant share of trade in 2008, as was the case in previous years? Yes, in that respect the situation is similar. On the BSE, as in previous years, of trade in shares of companies and banks, as well as the bonds of the Republic of Serbia, there was a dominant participation in the trade of shares, by as much as 92.6%. The total value of the turnover of shares achieved a level of €817 million, while the number of transactions in this financial instrument was 110,787, which is about 174,000 less than in 2007. If you compare the ratio of realised transactions in the trading of stocks and bonds, the participation of trade in shares is more dominant than within total turnover with as much as 93 per cent. In a few sentences, I will present the structure of trade in shares from the issuer. The participation of trade in bank shares increased slightly against the participation of trade in company shared compared to 2007. In absolute figures, the market share of banks in 2008 was a total of 29 billion dinars, as opposed to 37.5 billion dinars for the turnover of shares in companies. During 2008, trade in bonds followed the trend of reduced activity, marked by a drop of 68 per cent in absolute value (to €65.5 million), as well as a fall in relative participation to 7.4% of the total trade. Looking at monthly trade figures during last year, the trade of bonds in the first half of the year surpassed the second half, April was marked by record turnover of 11.8 billion dinars, while the greatest number of transactions was recorded in May, when there were a total of 12,314 transactions. Which trading method was predominant last year? Bearing in mind that the total market of the BSE is divided into several market segments – including the exchange’s Prime and Standard Market and the non-exchange segments of trading methods, including - SPA and Auction with continuous trading – it is interesting to look at information on trading according to those segments, bearing in mind that they point to the different quality and liquidity of individual parts of the market.
The BELEXline and BELEX15 indices continued to fall this week. What was the movement of BSE indices like in 2008 and how would you assess them? Although the trend of falling value of the indices began during the third quarter of 2007, the actual proportions of cumulative negative affects only came into realisation a year later. During the first quarter of 2008, the dominant framework in which investors moved was marked by a significant increase in political risk: high uncertainty resulting, firstly, from the presidential elections, then the Kosovo crisis and the fall of the government, as well as early parliamentary elections. Accordingly, it is important to specify the circumstances effecting the investment rating of the country, the exceptionally small number of companies’ shares on the exchange market (a total of four), as well as the low level of the BSE’s market capitalisation, which in total shows a low level of informa-
BELEX POSITION IN THE REGION
Market Capitalisation 50
Mlrd EUR
Ending with the last trade and calendar day of 2008, the method of continuous trading was used for trading shares of 48 issuers, of which the shares of three companies traded on the Prime Market, one company’s shares were traded on the Standard Market and 44 companies’ shares (from a total of over 1,800 included) were traded on the non-exchange market section. The shares of firms which were traded through the continuous trading segment in 2008 achieved a turnover of some 35 billion dinars, which represents more than 52 per cent of the total turnover of shares. The shares of firms which were traded through the SPA segment in 2008 achieved a turnover of around 12 billion dinars, which is 70 per cent lower than in 2007. As a percentage of total participation of trade in shares, this method fell nine percentage points to 18 per cent in 2008. Block trading achieved about 28 per cent of the total trade in 2008. At the annual level, block trading was up 40 per cent against 2007, amounting to about 18 billion dinars, which shows a tendency to conduct large transactions through bilateral agreements. The most liquid shares included in the BELEX15 index achieved 83 per cent of all transactions of shares traded through the continuous trading method.
45 40 35 30 25 20 15 10 5 0 BELGRADE
Bucharest
Ljubljana 2005
2006
2007
Sofia
Zagreb
2008
Turnover of shares by year Mlrd EUR
If, however, we wish to show comparative indicators of average total daily turnover on the BSE, we will again find data confirming a fall, as we would if we compared total trade. Namely, last year around 283 million dinars was traded on an average day, which is a decrease of 57 per cent compared to 2007.
6 5 4 3 2 1 0 BELEX
Bucharest SE 2005
Ljubljana 2006
2007
Sofia
Zagreb
2008
Indices of South East Europe
Turnover of shares by trade Metod preovladjujuće cene 18%
Blok trgovanja 28%
Metod kontinuiranog trgovanja 53%
Metod minimalne cene 1%
A lack of trust directly led to decreased liquidity and increased investment risk, which led to the mass withdrawal of investors Guide to Serbian Banking Sector / May 2009 65
INTERVIEW FIS
The historical value of the purchases of private individuals
The most liquid shares included in the BELEX15 index achieved 83 per cent of all transactions of shares traded through the continuous trading method
The historical value of the purchases of foreign persons
tion transparency and limited possibilities for the entrance of institutional investors operating with a low-risk investment policy. The market responded to these circumstances negatively and with volatility, which led to a weakening of the index by 25.86% during the first quarter, while in March alone (during the period when the government fell) a loss of 17.72% was made, marking the greatest monthly loss until that time. The second quarter brought some stability and a positive result of 3.75%, which was primarily linked to post-election expectations. Moreover, historically the highest daily change was recorded on 12th May, when the BELEX15 grew by a remarkable 12.93%. While the movement of both indexes during the first half of the year was determined by domestic circumstances, their movement in the second half of 2008 was determined by events on the world financial market and the affects of the global financial crisis that escalated during September and October. Those two months produced successive
NEGATIVE TREND
T
he disturbing trend of reduced participation of the turnover of bonds in the total turnover was conditioned by the increasing attractiveness of shares as the dominant instrument but, on the other hand, we can clearly see the lack of investment alternatives offered to professional investors. Namely, investors seek safer instruments, especially in times of crisis, which can be a buffer against powerful market shocks and whose market development is one of the prerequisites for the further development of the domestic capital market.
66 Guide to Serbian Banking Sector / May 2009
losses, which led the quarterly performance to a 43 per cent decrease in the value measured on the BELEX15 index. During the last quarter, the historical minimum value of the index was recorded, falling as much as 474.3 points by 22nd December, which represents a drop of 80.2% compared to the annual maximum. At the end of March this year, foreign investors are mainly trading on the BSE. Did their participation also mark 2008? The participation of foreign investors in trading on the BSE in 2008, viewed through the indicator of overall FIT, increased in relation to 2007 by more than eight percentage points. That data is certainly affirmative but, simultaneously, it also precisely indicates a lack of domestic demand, which is a problem of our market. In order to view the changing behaviour of foreign investors in the best way, we can examine tendencies broken down through participation in the sale and purchase of shares. In 2007, purchases, b-FIS, was at the level of 53.5%, indicating a high participation of foreign investors in the period of the greatest turnover and liquidity on the BSE. In 2008, meanwhile, came a dramatic fall of liquidity and this indicator being held to 51.9%, which was a positive signal that foreigners haven’t given up on our market. The indicator of participation in sales, sFIS, was at the level of 28.9% in 2007, while in 2008 it increased by almost 20 percentage
MINIMAL PRICE METHOD
T
rading in the so-called minimum price method, a non-standard method for trading shares owned by the Share Fund, under special conditions, has the least participation in the total turnover of shares, covering only about one per cent and totalling about 700 million dinars. It is realistic to expect that the potential of this method will reduce and, thus, its participation in the coming years will be lower and lower.
points, to 48.31%. Bearing in mind that investors from the region represent the dominant category of foreign investors and that their own markets experienced drastic price depreciation, it was expected that their position in Serbia would decrease, while all of the surplus available funds would be placed on the domestic market in order to most effectively neutralise the negative affects of the crisis “at home”. Bearing in mind the global economic crisis, what can we expect in the coming period in Serbia? Domestic investment demand, generated through the investment industry and voluntary pension funds, is not able to do anything about the substitution of foreign investors, because this branch of industry began operating at a time when the crisis had already started and when it was impossible to accumulate sufficient funds. The consequence of this is that the participation of foreign investors increases on the sale side and decreases on the purchase side, which generates a strong negative signal about the withdrawal of foreign investors from the market during this year, which only increases the negative affects of the crisis that is overrunning us. We could say that Serbia’s capital market today is emptying, bearing in mind weak domestic investment potential, the preference of traditional savings in banks, fear of capital losses and decreased investment potential due to the cumulative consequences of the economic crisis. In order to improve the situation on the market it is essential to improve the quality of offers, increase the level of transparency of the issuers, initiation foreign investments, which the state tried to give an impulse through the elimination of taxes on capital gains and the transfer of absolute rights. How would you define the participation
We could say that Serbia’s capital market today is emptying of minor investors in 2008? Individuals whose participation marked trading in 2007 were the first category of investors that reduced their activities to an absolute minimum during last year, lowering participation to a level not recorded since the beginning of 2005. According to BSE data, only 0.23% of Serbia’s citizens have ever bought shares on the stock market. Statistics showing that a large number of Serbian citizens have the status of shareholder originates primarily from the fact that they gained that status during the privatisation process and free allocation of shares. In that sense, BSE analysts’ attention is directed towards citizen-share buyers, rather than deceiving us with information about the high number of citizen-share sellers. Has the time when trading shares was an excellent way of earning gone forever? The most basic manifestation of the crisis, which took hold of all of the world’s capital markets during the last year, was the reduction of confidence in derivative financial instruments, which is reflected through decreased confidence in the market. A lack
of trust directly led to decreased liquidity and increased investment risk, which led to the mass withdrawal of investors, pressure on sales, falling prices and the production of capital losses. The spiralling movement transformed those losses into a further lack of available funds for investment and deepening illiquidity. The problems of a lack of confidence and liquidity generated the price depreciation that today characterises the BSE. This does not mean that times when the Stock Exchange can lead to profit have gone forever. First of all, crises do not last forever. Secondly, the mechanism of stock exchanges survived even after the falls of the previous world economic crisis. Economic recovery will mean the recovery of the stock exchange, while a careful attitude towards the development of Serbia’s capital market guarantees the future position of the Belgrade Stock Exchange as a place where capital gathers to further the economic development of the country. The recovery of companies will be reflected in the price of their shares, as well as the value of the portfolios of those investors who pa tiently remain in position.. Guide to Serbian Banking Sector / May 2009 67
LEASING
FOUR LEADING
PLAYERS
The financial leasing market is one of moderate concentration, with a gradual increase in the level of competition over a period of time By Ana STOJANOVIC
I
n October ‘08 the Serbian Government fully concurred with financial sector representatives’ assessment that there was reduced interest in financing through leasing and problems with the payment of leasing instalments. Speaking last March, Slobodan Ilic, State Secretary within the Finance Ministry, said that the government had aimed to help leasing companies began unilaterally implementing the Interim Agreement with the EU, which lowered cus-
toms tariff on imported cars and was supposed to subsequently stimulate leasing arrangements. Another government measure to assist this industry was subsidised consumer loans, including purchasing cars via leasing, and there are now proposals for subsidies to include agriculture machinery. A National Bank of Serbia (NBS) report on the supervision of financial leasing for the third quarter of 2008 confirms that 17 companies have licences to operate in Serbia’s financial leasing sector: Unicredit Leasing, Hypo Alpe-Adria-Leasing,
PLACEMENT STRUCTURE
D
uring the first three quarters of 2008, the structure of financial lease investment by leased objects reveals that the share financing of freight vehicles, minibuses and buses continued to rise, reaching 39.8% (35.8% in 2007). In comparison to 2007, the financing of passenger vehicles dropped from 25.1% to 24.2%. The sharpest drop, however, was recorded in financing construction machinery (from 10.0% to 7.2%), agriculture equipment (from 9.2% to 8.6%) and production machinery (from 10.5% to 10.1%). 68 Guide to Serbian Banking Sector / May 2009
Intesa Leasing, OTP Leasing, Lipaks, NLB Leasing, Porsche Leasing, ProCredit Leasing, Raiffeisen Leasing, S-Leasing, Sogelease, NBG Leasing, VB Leasing, Zastava Istrabenz Leasing, EFG Leasing, Meridian Leasing and Piraeus Leasing. A total of 11 leasing companies are either 100 per cent or majority owned by foreign companies, while five are owned domestically – four of which are owned by domestic companies with foreign capital. One leasing company is jointly owned (50-50) by a domestic company with foreign capital and a foreign company. The founders of two leasing companies, Lipaks and Zastava Istrabenz Leasing, do not come from the financial sector. Porsche Leasing can also be added to this section, as its owner bank is part of the Porsche Group and specialises in financing products manufactured by the Group. The proprietors of the other 14 leasing companies are banks, bank group members or other financial institutions.
RECAPITALISATION
O
n 30th March this year, Intesa Leasing Beograd underwent recapitalisation worth close to €10 million. This should lead to increased financing of new and used passenger and commercial vehicles, equipment and agriculture machinery. “This investment is yet more confirmation of the solid and stable position that Intesa Sanpaolo Group has, as well as demonstrating its determination to continue investing in Serbia despite the crisis. The fact that the recapitalisation was carried out shows that our mother bank firmly believes in the development prospects of this market,” says Vlastimir Vukovic, Director of Intesa Leasing, adding that the company will continue to develop new leasing products. Intesa Leasing recorded growth of 27.2% in its balance assets compared to last year. The total balance assets of all 17 leasing companies amounted to around €1.45 billion at the end of Q4 2008. Compared to 2007, this marks growth of 11.4%. Most of their balance assets pertain to foreign currency and financial obligations in foreign currency, which makes 94.5% of total balance assets and 93% of total liabilities. The share of receivables in total assets (79.1%) was lower than in either of the previous two years (85.6% in 2006 and 79.5% in 2007). Relative to the previous year, financial leasing receivables rose by 10.9%, while receivables due for payment accounted for two per cent of the total (of which 42.2% were overdue by up to 30 days and 1.14% were overdue by more than 30 days). In order to analyse the structure of the financial leasing market and the level of competition among different leasing providers, calculations were made of the individual and cumulative market shares of leasing providers’ balance sheet totals, as well as of the Herfindahl-Hirschman index (HHI). In 2008, the top four leasing providers maintained their previous positions, while their collective market share was twice that of all other leasing providers combined. The financial leasing market is one of moderate concentration, with a gradual increase in the level of competition over a period of time, as indicated by the HHI, which declined from 1,505.6 in 2007 to 1,455.4 at the end of the third quarter of 2008. On 30th September 2008, six leasing companies had the most significant ranking changes in comparison to 2007, having significantly increased their market share. In the first three quarters of 2008, the total combined pre-tax profit of all financial leasing providers came to around €6.18 million,
Total balance assets of all 17 leasers amounted to around €1.45 billion on 30th September 2008 down 58.7% on 2007. Exchange rate gains were the most significant category in leasing income, accounting for 69 per cent (61.4% in 2006 and 70 per cent in 2007) of total income. Interest income accounted for 25.4% of total income (33.2% in 2006 and 24.7% in 2007) and operating income accounted for 2.7% (3.7% in 2006 and 2.7% in 2007). In comparison to 2007, total income increased by 14.2% (exchange rate gains by 12.7% and interest income by 17.2%) and total expenses were up by 18.4% (exchange rate losses by 17.8% and interest expenses by 32.8%). As a result, at the end of the third quarter of 2008 the share of net pre-tax profit to the total income decreased from 5.5% in 2007 to two per cent. The structure of financial lease investments by lessee in the first three quarters of 2008 was unchanged from 2007: companies accounted for the major share of financial lease investments (85.3%), while private individuals held 7.2%. The structure of financial lease investments by sector changed in comparison to 2007. The most significant share goes to transport, storage and communications (28.7%), followed by the processing industry (17.1%), the trade sector (15.9%), agriculture, hunting and forestry (13.3%), construction (7.8%), individuals (7.4%) and other activities (7.1%). During the first three quarters of 2008, the profitability of financial leasing providers deteriorated in relation to 2007. The average lending rate declined, while the average deposit rate went up, resulting in a contraction of the
net interest margin. The ratio of operating expenses to average lease investment fell in the first three quarters of 2008, reflecting a steady increase in the efficiency of the sector. The balance sheet structure indicates that the largest portion of financial leasing investments were financed from foreign borrowing: as it stood on 30th September 2008, foreign loan obligations comprised 82.6% of total liabilities, while financial leasing investments accounted for 79.1% of total assets. The share of long-term domestic loans rose in comparison to 2007, from 3.6% to 6.7% of total liabilities. In the majority of cases, foreign creditors of financial leasing providers are either their founders or companies operating within the same group. The reserve base, as recorded on 30th September 2008 (allocation against which was made on 10th October 2008), increased in comparison to 31st January 2006 (against which the first calculation and allocation was made on 10th February 2006) almost 16 times to €834 million. The above base for calculating and allocating reserves against loans and supplementary payments from abroad (other than payments for share capital increases) used and/or received by leasing providers from 10th December 2005 onwards was equal to 72.86% of total loans used and/or received from abroad by leasing providers. Since the introduction of the required reserve, reserves’ allocations have risen from one maintenance period to the next as borrowing abroad has risen steadily. Guide to Serbian Banking Sector / May 2009 69
INVESTMENT FUNDS
SECONDARY INVESTMENT It’s estimated that only the strongest of Serbia’s 13 established open funds will still be surviving on the market by the end of 2009 By Marica VUKOVIĆ
T
he global financial crisis has already led to the closures of two investment funds in Serbia, while it estimated that only the strongest of Serbia’s 13 established
The value of the investment units of all funds began to fall rapidly as of October 2008...
open funds (registered as of April ’09) will still be surviving on the market by the end of 2009. Partially contributing to these collapses is the delayed response of the Serbian government in terms of introducing new regulations that would help these funds more easily overcome the consequences of the global crisis, preserve the value of their property and retain current members.
The first investment fund in Serbia was established in March 2007, but the sector was already suffering in late 2007 following the withdrawal of investors and the establishment of more realistic prices of shares traded on the Belgrade Stock Exchange. The value of the investment units of all funds began to fall rapidly as of October 2008 and by the end of March their decline had reached between 30 and 60 per cent – depending on when the fund commenced operations. Nevertheless, the funds’ founders insist that they are satisfied with how they are managing the property of their investors, because the declining value of investment units was less than the fall of the exchange index, which totalled 75 per cent last year. The first fund to be closed at the end of last year was AC equity funds, which had only begun operating in mid-July 2008. The final price of that fund’s investment units was 761 dinars, which is almost 24 per cent less than the initial price, while the total value of the fund prior to its closure was just 32,000 dinars. Mid-March this year saw the closure of Cepter Capital less than a year after it was founded in April ’08. which began to work in April 2008 with the fund’s investment units valued at 1,001 dinars. In the face of inevitable closure, Cepter Capital’s investment funds were worth just 448 dinars. All members of the two defunct funds have been paid, though the end result of their investment was a great loss of both face and money.
DROPPING VALUES
D
elta Plus was Serbia’s first investment fund and, thanks to unexpected growth of nearly 40% in its first few months of operating, it sustained the lowest fall in the value of its investment units, which dropped by a total of around 27%. At the time it was established, Delta Plus’s investment units were worth 1,000 dinars each, while they had dropped to 729 dinars by the start of April this year. The biggest fall in value was sustained by the fund Raiffeisen Action, whose units dropped 64.5% from an initial value of 1,000 dinars down to just 355 dinars. 70 Guide to Serbian Banking Sector / May 2009
Of the 13 active open funds, two are balanced funds, nine are funds of growth securities and one is a fund of protected securities. More than half of the funds’ members have already fully or partially withdrawn their contributions as they aren’t prepared to wait for the crisis to consume all of their invested capital. These are generally minor investors – citizens who invested part or all of their personal savings in the funds. Some even transferred their savings from banks to investment funds, emboldened by the fact that the funds initially offered higher yields than bank interest. There were even cases of fund members taking out expensive cash loans in order to buy investment fund units. They are now bitterly regretting the move because, in the meantime, negative changes to the foreign exchange rate have increased the loans’ monthly repayment rates. All investors were advised in good time that investing in an investment fund is a longterm investment even in the most stable economic conditions, but the desire for an easy profit is more powerful than all warnings and advice. Despite the fact that investment fund leaders indicated long ago that existing regulations for them were not stimulating, particularly in times of crisis, at the end of March the Serbian government adopted regulations that only partially meet their demands. This relates to the Decree on investment assets and credited societies for the management of investment funds, with the aim of alleviating the impact of the international financial crisis on Serbia’s capital market. The new rules enable societies for the man-
The first fund to be closed at the end of last year was AC equity funds, which had only begun operating in mid-July 2008 agement of investment funds and their associated members in the fund to invest up to 20 per cent of the net value of the fund’s assets, as well as 20 per cent of the fund’s assets in other investment funds not managed by the same society. Said societies are also now able to become indebted to commercial banks, in order to maintain liquidity, up to 20 per cent of the value of the funds’ property for a period of up to a year, as well as concluding repurchase agreements with other funds and banks of the same percentage. Proposed amendments to the law on investment funds are also in the process of being adopted. Details will be announced in Serbia’s official government Gazette, explaining regulationary incentive measures for funds during the crisis, as well as other concessions. However, judging by the speed at which the parliament works, a question mark hangs over when this law will make it onto the daily agenda. “The State can help a lot of funds by creating an environment recognisable in the region and the developed world. Some efforts are already being exerted by the Commission for bonds and the Ministry of Finance, in terms of greater opportunities for the diversification of investments abroad, the possibility of investing in the fund founded by societies for the
management of investment funds. All that remains is for the National Bank of Serbia to enable insurance companies to invest in investment funds, which could significantly improve the present situation of this industry,” said Vladimir Pavlovic, portfolio manager of investment fund FIMA Invest. When the global financial crisis broke, the founders of Serbia’s investment funds sought to create an emergency fund that could be used to pay members in the case that one of the fund got caught up in the crisis. However, that’s now unlikely to happen because there isn’t much need for an emergency fund at this juncture, since the assets of the investment funds have contracted almost six-fold since the beginning of 2008. At that time the funds were managing investments worth around €60 million, only for the value of those assets to drop to €17 million at the end of the year and just €11 million in early 2009. Only the largest investors remained the most faithful, perahps because they are not so pained by the loss of a few thousand euros. Proving, however, that things are not all black on the financial market, at the end of March work began on the establishing of a new fund, Erste Balance, while news also broke that FIMA is planning to invest in the creation of yet another fund – to be established by the end of June this year. We will have to wait Guide to Serbian Banking Sector / May 2009 71
PENSION FUNDS
LONG-TERM PATIENCE
At the beginning of April 2009, ten voluntary pension funds were operating on the Serbian market By Marica VUKOVIĆ
A
bout 160,000 citizens have so far paid for private pensions in Serbia but, due to the economic crisis, that number is unlikely to increase in the near future. Voluntary pension funds (VPF) started operating in Serbia in mid-November 2006. The first such funds were those that had been transformed from insurance companies. At that time the situation on the financial markets lent itself to the development of so-called
72 Guide to Serbian Banking Sector / May 2009
‘third pillar pension insurance’, which functions as a reliable institutional investor all over the world. Control of the sector is entrusted to the National Bank of Serbia, which – considering its strict regulations - is an additional guarantee that money will be well protected. Funds operate in such a way that members investment money each month, with the minimum monthly investment being 1,000 dinars. Part of that money is then invested in the safest bonds or placed in termed deposits of banks in order to achieve a certain yield on accumulated interest. Expectations are that the
yield will be higher than in banks, which motivates employees to set aside savings for their old age and has less risk than an investment fund, which by rights offers the biggest return – providing there isn’t a global crisis going on. The State, for its part, provides incentives to invest in additional pensions, such as ensuring that voluntary pension funds are freed of any tax burden.At the beginning of April 2009, ten voluntary pension funds were operating on the Serbian market and managing assets worth around five million dinars, which is around 500 million dinars more than at the end
of 2008 and over two billion dinars more than at year’s end 2007. The greatest share of this market is held by the fund of Dunav osiguranje (Danube Insurance) with 42.7%, followed by Delta Generali (23.6%), DDOR Pension Plus (18 per cent) and Raiffeisen FUTURE with eight per cent. Most of the funds’ assets are invested in government bonds (34.7%), treasury bills (13.3%), A-list shares (2.6%) and shares not on the A-list (2.2%), while 40.9% of assets are held on custody accounts, 4.7% on termed deposits and the funds’ real estate investments are worth 1.6% of the total assets of VPFs. The value of the investment units of most of the funds has slightly increased since their establishment, while two funds have been in decline and the most successful has been the fund of Raiffeisen. “Enough is said by the fact that we have completed our second year of operations with assets of the fund totalling 374 million dinars and over 10,750 members and that – in relation to the property we manage – we’ve increased our market share by more than eight per cent. What’s important for our members is the realised yield, which was up 12.42% in the first quarter of 2009 (from the beginning of operations) and 10.27% for the past 12 months. At the end of the first quarter of this year the fund’s assets reached a value of more than 425 million dinars,” said Snezana Ristanovic, director of Raiffeisen FUTURE. Ristanovic noted that the fund’s conservative investment policy was conditioned by the long-term aim of such a savings option, or rather the achievement of optimum yields and minimisation of risk investment, while the global economic crisis also called for additional caution in investing. “Based on monitoring of the spread of the financial crisis on developed capital markets, we esti-
mated that movements on our market would be negative, as a consequence of the further spread of the crisis. In order to protect the assets of the fund from increased investment risks that could be expected, our participation in risky securities and shares has been significantly reduced in the structure of the fund’s assets. Simultaneously, a greater portion of assets have been invested in the safest securities - bonds and treasury bills. Our timely response to the new situation facilitated the continuous growth in asset values and investment units of the fund in the period when stock market indices witnessed dramatic falls – the BELEX15 fell over 80 per cent and BELEXline fell over 70 per cent from the
phasize to employers who pay additional pension contributions for their employees that if they find themselves in a situation where they are unable to pay the contracted amount then they should at least make a smaller payment. It is better to pay the minimum amount of 1,000 dinars per month than to suspend payments altogether and wait for ‘better times’. Paying additional pension contributions is a great benefit for employees and for employers, considering tax and other incentives, the benefits provided for employees and that fact that it doesn’t cost much,” emphasised Ristanovic. The single biggest objection against the state is its insufficient commitment to educating
“I am deeply convinced that private pensions ... are the future for all of us” beginning of 2008,” explained Ristanovic. She expects Raiffeisen VPF to increase its membership this year too and, thus, also increase its assets, as well as achieving growth in the value of investment units. “This is about longterm savings and no one can expect to get rich ‘overnight’ through this type of saving,” said Ristanovic, indicating that capitalised savings in voluntary pension funds is still an unknown option for most of Serbia’s citizens. “I am deeply convinced that private pensions, as an independent source of income for citizens, are the future for all of us. In developed countries it has long since been unthinkable for citizens to rely solely on their state pension,” said Ristanovic. Asked to confirm whether or not the crisis was causing funds’ members to be late with payments, Ristanovic said that there are such cases but that this is not a problem. “It is important that there is continuity in the payment of contributions. We always em-
citizens about private pensions. VPFs have been established in the region’s countries, and Serbia, in line with the reform of pension systems. They play a significant role in guaranteeing the future security of citizens, while most citizens still don’t have a clue about the system of capitalised savings and their importance. As such, States must be the most active when it comes to public education. “It has been proven in practice that there can’t be a successful reform if citizens aren’t told what they gain by changing the system! Two years since the establishment of voluntary pension funds in Serbia, state institutions haven’t even begun to organise a serious campaign. Those of us who work in this industry are educating our citizens on a daily basis. However, despite the great effort invested from our side, this is totally insufficient and is certainly ineffective in terms of covering the population,” said Ristanovic.
STATE ASSISTANCE
A
ccording to Ristanovic’s assessment, the States could help a lot in terms of the development of voluntary pension insurance. “Our association has forwarded joint proposals and suggestions for the amending of certain provisions of laws and we expect the Ministry of Finance, as the proponent of there laws, to react quickly. What is of utmost importance to our industry is to increase the existing limit defined by law to five percent for VPF investments in termed deposits with banks, given the situation on the capital market and the small number of financial instruments.” Guide to Serbian Banking Sector / May 2009 73
PROCEDURES
REPRESENTATIVE
OFFICES
A foreign bank may set up a representative office on the territory of the Republic of Serbia for the purposes of market research and representation
A
s of 1st October 2006, when the Law on Banks came into force, the provisions of this law and the Decision on Detailed Requirements and the Procedure for Granting and Revoking Approvals for the Opening of the Representative Office of a foreign Bank in the Republic of Serbia (“Official Gazette of the RS”, no 53/2006), will apply to the opening of a foreign bank representative office in Serbia. Pursuant to the provisions of the Law, a foreign bank’s representative office is to be registered in conformity with the law governing the registration of business entities, subject to approval granted by the National Bank of Serbia Foreign bank representative offices established in conformity with the Law on Banks and Other Financial Organisations were required to comply with the provisions of the Law on Banks within one year of the day of its entry into force, or by 10th December 2006.
Deutsche bank
REPORT
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foreign bank representative office will be required to submit a report on its operations to the NBS by 31st March of the current year for the preceding year and to notify the NBS of all changes of significance to the operations of such representative office without delay. 74 Guide to Serbian Banking Sector / May 2009
thority is not required subject to the regulations of such country; data on its name, legal status and head office; a copy of its memorandum of incorporation; data on its financial standing (financial statement with certified auditors’ opinion for the preceding business year); a decision of its competent body on opening a representative office; a decision on appointing a person responsible for the operations of the representative office and a letter of authority for said authorised individual; data on the business name and head office of the representative office; a proposal of activities and draft working plan of the representative office; data on the management of the representative office, i.e. the biography of the person responsible for the operations of the representative office, a permanent or temporary residence permit for such person and a certified statement whereby the bank confirms that it assumes liabilities arising from the operations of its representative office.
A foreign bank’s representative office is to be registered in conformity with the law governing the registration of business entities An application for approval, to be submitted by the foreign bank to the National Bank of Serbia (NBS), should include: the name, head office and address of the foreign bank; the name, head office and address of the representative office being opened; data on the person responsible for the operations of the representative office being opened and data on the number of persons to be employed in said representative office. Along with the application, the bank should also submit: a certificate issued by a regulatory authority of the country of origin confirming that it holds an operating license and necessary authority to open a representative office in Serbia, or evidence that such au-
The above conditions are prescribed in the Decision on Detailed Requirements and the Procedure for the Granting and Revoking Approvals for the Opening of the Representative Office of a Foreign Bank in the Republic of Serbia (“Official Gazette of the RS”, no 53/2006), to be applied as of 1st October 2006. A foreign bank should submit an application for the entry of its representative office in the Register of Business Entities within 30 days of the day of obtaining NBS approval. The representative office of a foreign bank will submit the decision on entry in the register to the NBS within five days of the day of receiving such a decision.
BANK’S CORE DATA
OWNERSHIP STRUCTURE AND FINANCIAL REPORTS The data presented here is based on the financial reports that commercial banks are obliged to submit to the NBS. The financial reports presented have not passed the audit by authorised auditors and have not been proved by NBS though on-site examination 30.09.2008. Source: NBS
NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. TOTAL:
BANK TOTAL BALANCE SHEET Agroindustrijska komercijalna banka AIK banka a.d. Niš Alpha Bank Srbija a.d. Beograd Banca Intesa a.d. Beograd Banka Poštanska štedionica a.d. Beograd Credy banka a.d. Kragujevac Čačanska banka a.d. Čačak Erste Bank a.d. Novi Sad Eurobank EFG štedionica a.d. Beograd Findomestic banka a.d. Beograd Hypo Alpe-Adria-Bank a.d. Beograd JUBMES banka a.d. Beograd Jugobanka Jugbanka a.d. Kosovska Mitrovica KBC banka a.d. Beograd Komercijalna banka a.d. Beograd Kosovsko Metohijska banka a.d. Zvečan Marfin Bank a.d. Beograd Meridian Bank-Crédit Agricole group a.d. Novi Sad Metals-banka a.d. Novi Sad Moskovska banka a.d. Beograd NLB Continental banka a.d. Novi Sad NLB LHB banka a.d. Beograd Opportunity banka a.d. Novi Sad OTP banka Srbija a.d. Novi Sad Piraeus Bank a.d. Beograd Poljoprivredna banka Agrobanka a.d. Beograd Privredna banka a.d. Pančevo Privredna banka Beograd a.d. Beograd ProCredit Bank a.d. Beograd Raiffeisen banka a.d. Beograd Société Générale banka Srbija a.d. Beograd Srpska banka a.d. Beograd Unicredit Bank Srbija a.d. Beograd Univerzal banka a.d. Beograd Vojvođanska banka a.d. Novi Sad Volksbank a.d. Beograd
(IN THOUSANDS OF DINARS) 93,741,110 68,412,754 228,846,600 22,504,186 7,634,346 16,068,371 50,630,250 102,510,471 11,234,657 121,646,609 6,669,306 6,667,055 13,742,862 157,999,559 625,507 14,385,188 30,114,597 21,168,239 1,128,870 24,366,211 15,086,515 3,117,457 47,449,917 31,973,105 39,435,927 6,024,231 15,906,044 61,933,780 163,678,433 68,723,258 9,219,349 85,325,758 23,376,782 86,763,497 55,821,876 1,713,932,677
*Pursuant to the decision of the Business Registers Agency of 31 December 2008, NLB LHB Banka a.d. Beograd and NLB Continental banka a.d. Novi Sad merged to form a new bank operating under business name - NLB banka a.d. Beograd Guide to Serbian Banking Sector / May 2009 75
DIRECTORY
BANKS AUTHORISED TO PERFORM INTERNATIONAL OPERATIONS AS OF 7th APRIL 2009
REPRESENTATIVE OFFICES OF FOREIGN BANKS IN SERBIA AS OF 23rd MARCH 2009 SOURCE: NBS
SOURCE: NBS
1. AGROINDUSTRIJSKO KOMERCIJALNA BANKA AIK BANKA AD NIŠ 2. ALPHA BANK SRBIJA AD BEOGRAD 3. BANCA INTESA AD BEOGRAD 4. BANKA POŠTANSKA ŠTEDIONICA AD BEOGRAD 5. CREDY BANKA AD KRAGUJEVAC 06. ČAČANSKA BANKA AD ČAČAK 7. ERSTE BANK AD NOVI SAD 8. EUROBANK EFG AD BEOGRAD 9. FINDOMESTIC BANKA AD BEOGRAD 10. HYPO ALPE - ADRIA - BANK AD BEOGRAD 11. JUBMES BANKA AD BEOGRAD 12. KBC BANKA AD BEOGRAD 13. KOMERCIJALNA BANKA AD BEOGRAD 14. MARFIN BANK AD BEOGRAD 15. MERIDIAN BANK - CRÉDIT AGRICOLE GROUP AD NOVI SAD 16. METALS - BANKA AD NOVI SAD 17. MOSKOVSKA BANKA AD BEOGRAD 18. NLB BANKA AD BEOGRAD 19. OPPORTUNITY BANKA AD NOVI SAD 20. OTP BANKA SRBIJA AD NOVI SAD 21. PIRAEUS BANK AD BEOGRAD 22. POLJOPRIVREDNA BANKA AGROBANKA AD BEOGRAD 23. PRIVREDNA BANKA AD PANČEVO 24. PRIVREDNA BANKA BEOGRAD AD BEOGRAD 25. PROCREDIT BANK AD BEOGRAD 26. RAIFFEISEN BANKA AD BEOGRAD 27. SOCIETE GENERALE BANKA SRBIJA AD BEOGRAD 28. SRPSKA BANKA AD BEOGRAD 29. UNICREDIT BANK SRBIJA AD BEOGRAD 30. UNIVERZAL BANKA AD BEOGRAD 31. VOJVOĐANSKA BANKA AD NOVI SAD 32. VOLKSBANK AD BEOGRAD
AKB “EUROAXIS BANKA”, MOSKVA Belgrade, 3, Zmaj-Jovina st. Phone: (381)11 3283-514, 3283-422 Fax: (381) 11 637-157 Director: Mirjana Mijušković BNP PARIBAS, PARIS Belgrade, 22, Obilićev venac Phone: (381)11 3284-860, 3284-861 Fax: (381)11 3288-377 E mail: philipe.kirchner@bnpparibas.com Director: Philippe Kirchner CITIBANK N.A., LAS VEGAS Belgrade, 64A/IV, Bul. Zorana Đinđića-a Phone: (381)11 2209-300 Fax: (381)11 2209-310 Director: Ana Drašković COMMERZBANK AG., FRANKFURT/MAIN New Belgrade,Genex Apartmani (A-112) 6,Vladimira Popovića st. Phone: (381)11 3018-520 Fax: (381)11 3018-523 E mail: thomas.timme@commerzbank.com Director: Thomas Timme DEUTSCHE BANK AKTIENGESELLS CHAFT, FRANKFURT/MAIN Belgrade, 2, Balkanska st. Phone: (381)11 2055-050 Fax: (381)11 2055-053 Director: Nemanja Žugić LHB INTERNATIONALE HAN DELSBANK A.G. FRANKFURT/MAIN Belgrade, 29/I, Dobračina st. Phone: (381)11 3030-261, 3030-260, 627-710 Fax: (381)11 3030-262 Director: Jugoslav Mišković IEFK BANKA AD BANJA LUKA, REPUBLIKA SRPSKA, BOSNA I HER CEGOVINA New Belgrade, 6 Vladimira Popovića st, Genex Apartments (A 202) Phone: (381)11 2606-537, 2606-528 Fax: (381)11 2606-537 Director: Nebojša Dželebdžić NOVA KREDITNA BANKA MARIBOR DD MARIBOR, REPUBLIKA SLOVENIJA Beograd, 43, Gospodar Jovanova st. Phone: (381)11 2621-411 Fax: (381)11 3285-651 E mail: beograd@nkbm.si Director: Alojz Kovše
76 Guide to Serbian Banking Sector / May 2009
INSURANCE COMPANIES NONLIFE INSURANCE STOCK COMPANY “AS OSIGURANJE” 11070 Novi Beograd, Bul. Mihaila Pupina 165e Phone: 381 11 26 08 676 Fax: 381 11 26 08 684 Manager: Metod Grah Types of insurance operations: non-life insurance / ID number: 20384166 / PIB: 105510418 www.as-osiguranje.rs info@as-osiguranje.rs Auditor: Vinčić (2008) Official actuaries: The greatest shareholders: Adriatic Slovenica, Koper, Slovenia, JUB, d.o.o. Šimanovci INSURANCE STOCK COMPANY “AMS OSIGURANJE” 11000 Beograd, Ruzveltova 16 Phone: 381 11 334-27-55, 308-49-02 Fax: 381 11 334-27-55, 308-49-02 Manager: Aleksandar Janković Types of insurance operations: All classes of non-life insurance ID number: 17176471 / PIB: 100000563 / www.ams.co.yu info@ams.co.yu / Staff: 392 (9/30/07) / Auditor: Vinčić (2004), Deloitte (2005, 2006, 2007, 2008) Official actuaries: Radomir Lazarević (2004, 2005), Milan Cerović (2006) Main shareholders As of 31.10.2007. The greatest shareholders: AMSS Beograd, AUTO-MOTO DRUŠTVO RAKOVICA, PREDUZEĆE-AMSS D.O.O. Beograd NON LIFE INSURANCE BASLER J.S.I.C. 11000 Beograd, Resavska 29 Phone: 381 11 324-77-16 Fax: 381 11 334-29-03 Manager: Vladimir Radić Types of insurance operations: nonlife insurance: accident insurance and voluntary health insurance, other classes of property insurance, other liability insurance classes and other classes of non-life insurance ID number: @20315431 / PIB: @105102879 / www.basler.rs office@basler.rs / Manager: Vladimir Radić / Staff: 6 (30.September 2007.) / Auditor: Pricewaterhouse Coopers (2007) / Official actuaries: Mr Vladanka Vučeljić / Main shareholders As of Date: 10/31/07 The greatest shareholders: Baloise Holding, Bazel, Švajcarska, Wolf Theiss d.o.o. Beograd LIFE INSURANCE BASLER J.S.I.C. 11000 Beograd, Resavska 29 Phone: 381 11 324-77-16 Fax: 381 11 334-29-03
Manager: Vladimir Medan Types of insurance operations: All classes of life insurance apart from voluntary pension insurance ID number: 20310065 / PIB: 105091367 / www.basler.rs / office@ basler.rs / Staff: 3 (9/30/07) Auditor: Pricewatherhouse Coopers - 2007 / Official actuaries: Ms. Vladanka Vučeljić Main shareholders As of 10/31/2007 The greatest shareholders: Baloise Holding, Bazel, Švajcarska, Wolf Theiss d.o.o. Beograd INSURANCE STOCK COMPANY “CREDIT AGRICOLE LIFE” 11000 Beograd, Kolarčeva 7 Phone: 381 11 330-58-15 Fax: 381 11 330-59-03 Manager: Guglielmo Benini Types of insurance operations: All classes of life insurance, except voluntary pension insurance ID number: 20226960 / PIB: 104739276 / www.califeserbia.com office@califeserbia.com Staff: 11 (9/30/07) Auditor: „Ernst&Young” (2006), Vinčić (2007); KPMG (2008) Official actuaries: Dragan Filipović, Gordana Radojević (2006) Main shareholders As of 10/31/07 The greatest shareholders: “CREDIT AGRICOLE ASSURANCES”, Paris, Francuska Ana Marić INSURANCE STOCK COMPANY “DELTA GENERALI OSIGURANJE” 11000 Beograd, Milentija Popovića 7 b Phone: 381 11 222-0-555 Fax: 381 11 222-0-555 CEO and President of Board of directors: Nebojša Divljan Types of insurance operations: All types of life insurance and all types of non-life insurance ID number: 17198319 PIB: 100001175 www.deltagenerali.rs kontakt.centar@deltagenerali.rs Staff: 1934 (December. 31, 2008) Auditor: Ernst & Young (2004, 2005), Pricewaterhouse Coopers d.o.o. (2006, 2007, 2008) Official actuary: Branko Pavlovic Shareholders: Generali PPF Holding B.V. and DELTA REAL ESTATE d.o.o. Beograd The greatest shareholder: Generali PPF Holding B.V., Czech Republic INSURANCE STOCK COMPANY “DUNAV OSIGURANJE” 11000 Beograd, Makedonska 4 Phone: 381 11 322-80-30,
322-68-21, 334-46-99 Fax: 381 11 624-439 Manager: v.d. Milenka Jezdimirović Types of insurance operations: All classes of life insurance and all classes of non-life insurance, apart from voluntary pension insurance ID number: 07046898 PIB: 100001958 / www.dunav.com info@dunav.com / Manager: Milenka Jezdimirović / Staff: 1995 (9/30/07) Auditor: Deloitte & Touche (2004), Deloitte (2005, 2006, 2007, 2008) Official actuaries: Stjepan Kežić, Dušan Smiljanić (2004), Gradimir Nikolić (2005), G. Nikolić , Igor Zorić, Mr Teodora Teodorović-Milosavljević (2006) / Main shareholders As of 31.10.2007. / Share capital: 1.1. RAIFFEISEN ZENTRALBANK. 1.2. KOMERCIJALNA BANKA A.D. , 1.3. AS HANSAPANK, 1.4. HYPO-ALPEADRIA BANK A.G., 1.5. BANK AUSTRIA CREDITANSTALT, 1.6. REPUBLIKA SRBIJA INSURANCE STOCK COMPANY “ENERGOPROJEKT GARANT” 1070 N. Beograd, Bul. Mihaila Pupina 12 Phone: 381 11 310-10-82, 310-10-66 Fax: 381 11 311-21-07 Manager: Zlatko Zagar Types of insurance operations: Other classes of property insurance, other classes of liability insurance, other classes of non-life insurance, ID number: 07812728 / PIB: 100001468 www.garant.rs / z.zagar@garant.rs Staff: 11 (12/31/08) Auditor: MGI Revizija i računovodstvo (2004, 2005), Vinčić (2006), MGI Revizija i računovodstvo (2007, 2008) Official actuaries: Dejan Petrović (2004), Branislav Gecić (2005, 2006,2007,2008) Main shareholders As of 31.12.2008. The greatest shareholders: “Energoprojekt holding”, “Energoprojekt niskogradnja” , “Energorpojekt visokogradnja” , Jubmes banka a.d. Beograd INSURANCE STOCK COMPANY “GLOBOSOSIGURANJE” A.D.O. 11000 Beograd, Knez Mihailova 11-15/III Phone: 381 11 2620-015, 2629-097 Fax: 381 11 2186-209 Manager: Milovan Đurović Types of insurance operations: All classes of non-life insurance ID number: 06936253 / PIB: 100001079 www.globos.co.rs / office@globos. co.rs / Staff: 49 (12/31/08) Auditor: MGI Revizija i Računovodstvo (2004, 2005, 2006, 2007, 2008) Official actuaries: .Momirov, D.Filipović (2004, 2005,2006,2007,2008) Main shareholders As of 10/31/07
The greatest shareholders: Milovan Đurović, Uni global d.o.o., Beograd, Globosino d.o.o. Beograd, Hypo-AlpeAdria Bank a.g. INSURANCE STOCK COMPANY “GRAWE” 11000 Beograd, Bul. Mihaila Pupina 115D Phone: 381 11 2092 600 Fax: 381 11 2092 661 Manager: Christoph Czettl Types of insurance operations: 1. Life insurance, namely: life insurance; additional insurance with the life insurance. Non-life insurance, namely: accidents insurance; fire and other hazards insurance; other property insurance / ID number: 17157051 PIB: 100000161 / www.grawe.rs office.beograd@grawe.at Staff: 325 (9/30/07) Auditor: Finodit (2004), Vinčić (2005, 2006, 2007, 2008) Official actuaries: Dejan Petrović, Dušan Smiljanić (2004, 2005), Dejan Petrović, Dušan Smiljanić, Saša Stanojlović (2006) / Main shareholders As of 31.10.2007. The greatest shareholders: Grazer Wechelseitige Versicherung Aktiengesellschaft, INTERSECURITASBETRIEBS-SERVICE GMBH, Graz, Austria INSURANCE STOCK COMPANY “MERKUR” 11000 Beograd, Bul. Mihajla Pupina 6 Phone: 381 11 220-12-50 Fax: 381 11 220-12-51 Manager: Miodrag Kvrgić Types of insurance operations: 1. All types of life insurance, apart from voluntary pension insurance, insurance from connected damage and voluntary health insurance in the part covering the costs of medical treatment, provided these types of insurance pertain to a person who has signed life insurance contract, directly connected to the insurance operations ID number: 20301902 / PIB: 105046005 www.merkur.rs / office@merkur.rs Staff: 16 (9/30/07) / Auditor: Pricewaterhouse Coopers d.o.o. (2007), KPMG (2008) / Official actuaries: Main shareholders As of 10/31/07 The greatest shareholders: MERKUR VERSICHERUNG AKTIENGESELLSCHAFT, Graz, Austria INSURANCE STOCK COMPANY “MILENIJUM OSIGURANJE” 11000 Beograd, Kneza Miloša 82/I Phone: 381 11 362-06-23 Fax: 381 11 362-06-23 Manager: Veljko Knežević Types of insurance operations: All classes of non-life insurance ID number: 07810318 PIB: 100002119 www.milenijum-osiguranje.co.yu
office@milenijum-osiguranje.co.yu Staff: 243 (9/30/07) / Auditor: Privredni savetnik - revizija (2004, 2005, 2006) Official actuaries: Branislav Gecić (2004, 2005, 2006) / Main shareholders As of 10/31/07 / The greatest shareholders: “Croatia osiguranje”, Zagreb INSURANCE STOCK COMPANY “POLIS” 11000 Beograd, Sremska 6 Phone: 381 11 328-63-01, 328-6275, 328-62-98 Fax: 381 11 328-62-71 Manager: Duško Jovanović Types of insurance operations: All types of non-life insurance ID number: 17407813 / PIB: 100002516 www.sava-osiguranje.rs office@sava-osiguranje.rs Staff: 276 (Sept. 30, 2007) Auditor: Ernst & Young (2004, 2005), KPMG (2006, 2007, 2008) / Official actuaries: D. Filipović, D. Petrović (2004), Ljubomir Popović, Dragan Filipović, Dejan Petrović (2005), Ljubomir Popović, Dejan Petrović (2006) Main shareholders As of Sept.30, 2007 The greatest shareholders: Podzavarovalnica Sava d.d. Ljubljana, INSURANCE STOCK COMPANY “TAKOVO” 34000 Kragujevac, Dr. Z. Đinđića 15a Phone: 381 34 303-006, 303-007, 303-008 Fax: 381 34 303-054 Manager: Dragan Jovović Types of insurance operations: ID number: 06084184 / PIB: 101457935 www.takovo-osiguranje.co.yu office@takovo-osiguranje.co.yu Staff: 357 (9/30/07) Auditor: Deloitte & Touche (2004), Deloitte (2005), Vinčić (2006, 2007, 2008) / Official actuaries: Milan Cerović (2004, 2005, 2006) Main shareholders As of 10/31/07 / The greatest shareholders: Dragan Jovović, “Auto Takovo” d.o.o., Milan Jovović, Snežana Jovović, PROBANKA D.D. INSURANCE STOCK COMPANY “TRIGLAV KOPAONIK” 11000 Beograd, Kralja Petra 28 Phone: 381 11 3305-111, 2637-355 Fax: 381 11 2637-187 Manager: Zoran Popović Types of insurance operations: All types of life insurance, apart from voluntary pension insurance and all types of non-life insurance ID number: 07082428 / PIB: 100000555 www.triglav.co.yu / office@triglav.co.yu Manager: Zoran Popović / Staff: 391 (Sept. 30, 2007) / Auditor: Pricewaterhouse Coopers d.o.o.(2006), KPMG (2007, 2008) / Official actuaries:
Stjepan Kežić, DušanSmiljanić (2004, 2005),, Mr Vladanka Vučeljić i Mr Snežana Momirov (2006) Main shareholders As of 10/31/07 The greatest shareholders: Share capital: 1.1. Zavarovalnica Triglav d.d., Ljubljana, 1.2. Jurišić Jasminka Socially and state owned captal INSURANCE STOCK COMPANY “UNIQA” LIFE INSURANCE 11000 Beograd, Milutina Milankovića 134 g Phone: 381 11 20 24 100 Fax: 381 11 20 24 160 Manager: Gerald Muller Types of insurance operations: All classes of life insurance apart from voluntary pension insurance ID number: 17192787 / PIB: 100000426 www.uniqa.co.yu / i nfo@uniqa.co.yu Staff: 341 (9/30/07) / Auditor: Deloitte & Touche (2004), Deloitte (2005), KPMG (2006, 2007, 2008) Official actuaries: Mirko Kaplanović (2004, 2005), Branislav Gecić (2006) Main shareholders As of 10/31/07 The greatest shareholders: Uniqa International BeteiligungsVerwaltungs GmbH, Beč, Austria, United Business Activities - UBA, Holding A.G., Bazel, Švajcarska, Uniqa Versicherungen AG, Beč, Austrija INSURANCE STOCK COMPANY “UNIQA” NONLIFE INSURANCE 11001 Beograd, Milutina Milankovića 134 g Phone: 381 11 20 24 100 Fax: 381 11 20 24 160 Manager: Zoran Višnjić Types of insurance operations: All classes of non-life insurance ID number: 20289414 / PIB: 104990662 www.uniqa.co.yu / info@uniqa.co.yu Staff: 439 (9/30/07) / Auditor: KPMG (2008) / Official actuaries: Branislav Gecić (2007) Main shareholders As of 10/31/07 The greatest shareholders: UNIQA INTERNATIONAL BETEILIGUNGSVERWALTUNGS GMBH UNIQA INTERNATIONAL VERSICHERUNGS-HOLDING GMBH INSURANCE STOCK COMPANY “WIENER STADTISCHE OSIG URANJE” 11070 Novi Beograd, Bul. Mihaila Pupina 165G Phone: 381 11 2209-901 Fax: 381 11 2209-900, 2209-884 Manager: Branko Krstonošić Types of insurance operations: All classes of life insurance apart from voluntary pension insurance, all classes of non-life insurance ID number: 17456598 PIB: 102608229 / www.wiener.co.yu office@wiener.co.yu
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INVESTMENT FUNDS CITADEL ASSET MANAGEMENT A.D., Vladimira Popovića 6, Genex Ap, A 602 +381 - 11/222-37-66; 311-23-40 E-mail: office@citadel-am.com www.citadel-am.com ID 20347902 Director: Pavle Kavran / Triumph – Portfolio manager: Violeta Ivanković Triumph Elite - Portfolio manager: Miroslava Blažić DELTA INVESTMENTS A.D. Milentija Popovića 7b, Beograd +381 - 11/201-26-79; 201-26-77 deltafond@deltainvestments.rs www.deltainvestments.rs ID 20241730 Director: Radmila Bajević / Delta plusPorfolio manager: Radisav Osmajlić Delta Dynamic - Portfolio manager: Bogdan Simatović ERSTE INVEST A.D. Terazije br.42/I, Beograd +381 - 11/268-59-82; 268-51-70; info@ersteinvest.rs / www.ersteinvest.rs ID 20453427 Director: Marija Medenica Erste Balanced - Portfolio manager:
Dejan Vasiljev FIMA INVEST A.D. Trg Nikole Pašića 5, Beograd +381 - 11/3021-625; 021-626 milan.marinkovic@fimainvest.com www.fimainvest.com ID 20272627 Director: Milan Marinković Fima ProActive- Portfolio manager Vladimir Pavlović Fima Southeastern Europe Activist: Portfolio manager: Vladimir Draškovć FOKUS INVEST A.D. Jurija Gagarina 32/III, Beograd +381 - 11/353-28-21; 353-28-31; office@focusinvest.biz www.focusinvest.biz ID 20303646 Director: Aleksej Misailović / Focus premium- Porfolio manager: Marko Milić Focus money fund - Portfolio manager: Petar Radulović ILIRIKA A.D. Knez Mihajlova 11- 15/V, Beograd +381 -11/330-10-22; 330-10-50 info-fond@ilirika.co.yu www.ilirika-dzu.co.yu ID 20338407
Director: Milan Kovač Ilirika Southeastern Europe - Portfolio manager: Miilun Trivunac HYPO INVESTMENTS A.D. Bul. Mihaila Pupina 6, Beograd +381 - 01/222-68-42; 222-68-40; investments@hypo-alpe-adria.rs www.hypoinvestments.rs ID 20320133 Director: Ilija Protić / Hypo BalancePortfolio manager: Ivan Jovanović JUBMES INVEST A.D., Bul. Zorana Đinđića 121, Beograd +381 – 11/ 220-55-16; 311-80-17 E-mail: invest@jubmes.co.yu www.jubmesinvest.co.yu ID 20356243 Director: Željko Matijević / Jubmes Aktiv - Portfolio manager: Uroš Manojlović KD INVESTMENTS A.D. Zmaj Jovina 13, Beograd +381 - 11/263-59-18; 328-23-31 dusan.lahe@kd-investments.co.yu www.kd-investments.co.yu ID 20329831 Director: Dušan Lahe KD Exclusive - Portfolio manager:
Aleksandar Antonijević KOMBANK INVEST A.D. Makedonska 29, Beograd +381 - 11/330-83-10; 328-12-33 danilo.vuksanovic@kombankinvest. com www.kombankinvest.com ID 20379758 Director: Danilo Vuksanović Kombak In FunD - Portfolio manager: Maja Martinović PROFONDOVI A.D. Kralja Petra 45/IV, Beograd +381 - 11/263-25-64; 263-35-27 info@profondovi.rs / www.profondovi.rs ID 20445033 Director: Gregor Senekovič Portfolio manager: Sandra Rodić RAIFFEISEN INVEST A.D. Bul. Zorana Đinđića 64a, Beograd +381-11-220-77-77 E-mail: info@raiffeisen.rs www.raiffeiseninvest.rs ID 20302402 Director: Jovana Kršikapa Portfolio manager: Bojan Kozoder Source: Securities Commission
LEASING COMPANIES “EFG LEASING” A.D. BEOGRAD 11070 Novi Beograd, Milutina Milankovića 7 V Phone: 381 11 3637 122 Manager: President of the Management Board ( predsednik Upravnog odbora), Antonios Chatzistamatiou, Fax: 381 11 3637 111 “HYPO ALPEADRIALEASING” DOO BEOGRAD 11000 Beograd, Bul. Mihajla Pupina 6 Phone: 381 11 2227 000 Manager: Vladimir Jamšek Fax: 381 11 2227 099 “INTESA LEASING” DOO BEOGRAD 11000 Beograd, Knez Mihailova 30 Phone: 381 11 3022 678 Manager: President of the Management Board, Vlastimir Vuković Fax: 381 11 3022 682 “LIPAKS” DOO BEOGRAD 11000 Beograd, Vidska 29a Phone: 381 11 244 9229 Manager: Mirko Žeželj Fax: 381 11 244 9229
“MERIDIAN LEASING” DOO BEOGRAD 11000 Beograd, Kolarčeva 7 Phone: 381 11 3305 930 Manager: Marko Ignjatović “NBG LIZING” DOO BEOGRAD 11000 Beograd, Omlad. brigada 88 Phone: 381 11 2287 982 Manager: President of the Management Board, Teodor Valentinov Fax: 381 11 2287 984 “NLB LEASING” DOO BEOGRAD 11000 Beograd, Bul. Mihajla Pupina 165v Phone: 381 11 319 1113 Manager: Dušan Stankov Fax: 381 11 222 0102 “OTP LEASING” DOO NOVI SAD 21000 Novi Sad, Bul. oslobođenja 80 Phone: 381 21 4800 172 Manager: Sofija Subakov Fax: 381 21 4800 172 “PIRAEUS LEASING” DOO BEOGRAD 11000 Beograd, Vladimira Popovića 6 Phone: 381 11 2228 600 Manager: Zoran Pavlović Fax: 381 11 2228 601
78 Guide to Serbian Banking Sector / May 2009
“PORSCHE LEASING SCG” DOO BEOGRAD 11000 Beograd, Zrenjaninski put 11 Phone: 381 11 3042 440 Manager: Vojo Miladić Fax: 381 11 3042 449 “PROCREDIT LEASING” DOO BEOGRAD 11000 Beograd, Bul. despota Stefana 68 c Phone: 381 11 3012 700 Manager: President of the Management Board, Mirjana Zakanji Fax: 381 11 3012 712 “RAIFFEISEN LEASING” DOO BEOGRAD 11000 Beograd, Milutina Milankovića 134a Phone: 381 11 2017 700 Manager: Ralf Zeitlberger Fax: 381 11 3130 081 “SLEASING” DOO BEOGRAD 11000 Beograd, Đorđa Stanojevića 12 Phone: 381 11 2010 700 Manager: Bojan Baša Fax: 381 11 2010 702
“SOGELEASE SRBIJA” DOO BEOGRAD 11000 Beograd, Zorana Đinđića 48/b Phone: 381 11 2221 369 Manager: Vuk Vučević Fax: 381 11 2221 388 “UNICREDIT LEASING SRBIJA” DOO BEOGRAD 11000 Beograd, Bul. Mihajla Pupina 165e Phone: 381 11 309 3500 Manager: Gerald Kern Fax: 381 11 309 3501 “VB LEASING” DOO BEOGRAD 11000 Beograd, Đorđa Stanojevića 12 Phone: 381 11 2016 501 Manager: Milan Vićentić Fax: 381 11 2016 560 “ZASTAVA ISTRABENZ LIZING” DOO BEOGRAD 11000 Beograd, Despota Stefana 12 Phone: 381 11 3227 910 Manager: Božidar Milojičić Fax: 381 11 3343 393 Source: NBS
VPF MANAGEMENT COMPANIES DELTA GENERALI 11000 Beograd, Milentija Popovića 7b Tel: 381 11 22-20-505 General Manager: Nataša Marjanović Registration number: 20200677 TIN: 104610460 www.penzijskifond.rs Number of decision on granting operating license: G-br. 8071 Date of issue of decision: 08.09.2006. Appendices: Auditor’s opinion and balance sheets: 31/12/2007: 30/06/2008 List of Funds Number in the NBS register of voluntary pension funds: General1000071 Portfolio Manager: Nataša Marjanović Custody bank: Unicredit Bank Srbija a.d. Beograd, Rajićeva 27-29, 11 000 Beograd Members of Managing Board: Nataša Marjanović, Teodora Milenković, Diego De Gennaro Members of Executive Board Main shareholders: TOTAL DELTA GENERALI OSIGURANJE, a.d.o. Beograd 100.00% RAIFFEISEN FUTURE 11070 Novi Beograd, Bul. Zorana Đinđića 64a Tel: 381 11 22-07-189 General Manager: Snežana Ristanović Registration number: 20223243 TIN: 104714052 www.raiffeisenfuture.rs Number of decision on granting operating license: G-br. 10175 Date of issue of decision: 16.11.2006. Appendices: Auditor’s opinion and balance sheets: 31/12/2007; 30/06/2008 List of Funds Number in the NBS register of voluntary pension funds: 1000168 Portfolio Manager: Sunčica Pribišević Custody bank: Unicredit Bank Srbija a.d. Beograd, Rajićeva 27-29, 11 000 Beograd Members of Managing Board Members of Executive Board Main shareholders: TOTAL RAIFFEISENBANK, a.d. Beograd 100.00% GARANT PENZIJSKO DRUŠTVO 11000 Beograd, TPC City Passage, Obilićev venac 18-20/VI Tel: 381 11 33-43-446 General Manager: Miloš Škrbić Registration number: 20230240 TIN: 104746708 www.garant-penzije.eu Number of decision on granting operating license: G-br. 10178 Date of issue of decision: 16.11.2006. Appendices: Auditor’s opinion and balance sheets: 31/12/2007; 30/06/2008 (serbian only) List of Funds Number in the NBS register of voluntary pension funds: 1000265
Portfolio Manager: Jokić Djordje Custody bank: Komercijalna banka a.d. Beograd, Makedonska 29, 11000 Beograd Members of Managing Board: Alenka Žnidaršič Kranjc, Damir Verdev, Aleksandra Bohorč Members of Executive Board: Miloš Škrbić, Jelena Marković Main shareholders: TOTAL Skupina Prva d.d., Ljubljana, Slovenija 99.00% , Eki investment d.o.o, Beograd 1.00% DDOR PENZIJA PLUS 21000 Novi Sad, Bul. Mihajla Pupina 12 Tel: 381 21 48-86-001 General Manager: Biljana Dorić Registration number: 20232781 TIN: 104762298 www.ddor-penzijaplus.net Number of decision on granting operating license: G-br. 10442 Date of issue of decision: 28.11.2006. Appendices: Auditor’s opinion and balance sheets: 31/12/2007; 30/06/2008 (serbian only) List of Funds Number in the NBS register of voluntary pension funds: 1000362 Portfolio Manager: Marijana Popović Custody bank: Societe Generale Banka Srbija AD Beograd, Bul. Zorana Đinđića 50 a/b, 11 070 Beograd Members of Managing Board: Darko Botić, Tatjana Rakočević, Dario Schiller Main shareholders: TOTAL Akcionarsko društvo za osiguranje i reosiguranje DDOR NOVI SAD 100.00% NLB NOVA PENZIJA 11000 Beograd, Bul. Mihajla Pupina 165v / Tel: 381 11 31-39-315 General Manager: Ivan Grujić Registration number: 20255242 TIN: 104848163 www.nlbnovapenzija.com Number of decision on granting operating license: G-br. 3240 Date of issue of decision: 16.02.2007. Appendices: Auditor’s opinion and balance sheets: 31/12/2007; 30/06/2008; 31/12/2008 List of Funds Number in the NBS register of voluntary pension funds: 1000459 Portfolio Manager: Branislav Čukvas Custody bank: Unicredit Bank Srbija a.d. Beograd, Rajićeva 27-29, 11 000 Beograd Members of Managing Board: Milan Marinič, Aljoša Uršič, Srđan Brajović, Zoran Đurović, Zvonko Cvek Members of Executive Board: Gordana Pajić, Zvonko Cvek, Ivan Grujić Main shareholders: TOTAL Nova Ljubljanska Banka a.d, Trg Republike 2, 1520 Ljubljana, Republika Slovenija 61.40%
Skupna pokojinska družba a.d, Trg Republike 3, 1520 Ljubljana, Republika Slovenija 15.60% NLB banka a.d, Beograd, 11070 Beograd, Republika Srbija 23.00% DUNAV 11000 Beograd, Knez Mihailova 6/VII Tel: 381 11 32-20-301 General Manager: Mirjana Grbović Registration number: 17411233 TIN: 100057074 www.dunavpenzije.com Number of decision on granting operating license: G-br. 4496 Date of issue of decision: 08.03.2007. Appendices: Auditor’s opinion and balance sheets: 31/12/2007; 30/06/2008 List of Funds Number in the NBS register of voluntary pension funds: 1000556 Portfolio Manager: Ivan Batinica Custody bank: Societe Generale Banka Srbija AD Beograd, Bul. Zorana Đinđića 50 a/b, 11 070 Beograd Members of Managing Board: Boško Živković, Lazar Milićević, Dragan Milošević, Jovanka Jovanović, Marina Samardžić Members of Executive Board Main shareholders: TOTAL Kompanija “Dunav osiguranje” a.d.o. Beograd 100.00% TRIGLAV 11000 Beograd, Kralja Petra 45 Tel: 381 11 30-36-562 General Manager: Dr Vojko Saksida Registration number: 20300485 PIN: 105034088 www.triglavpenzija.co.yu Number of decision on granting operating license: G-br. 7398 Date of issue of decision: 06.06.2007. Appendices: Auditor’s opinion and balance sheets: 31/12/2007; 30/06/2008;31.12.2008; List of Funds Number in the NBS register of voluntary pension funds: 1000653 Portfolio Manager: Mr Uroš Ivanc Custody bank: Unicredit Bank Srbija a.d. Beograd, Rajićeva 27-29, 11 000 Beograd Members of Managing Board: Miroslav Matijaševič, Dr Vojko Saksida, Mr Miloš Čas, Milan Skok Members of Executive Board Main shareholders: TOTAL Zavarovalnica Triglav, d.d, Ljubljana 70.00% Triglav, družba za upravljanje, d.o.o, Ljubljana 25.001% Akcionarsko društvo za osiguranje “Triglav Kopaonik” a.d.o, Beograd 4.999% HYPO 11070 Novi Beograd, Bul. Mihajla Pupina 6 Tel: 0800 000 999 General Manager: Zorica Petrović Registration number: 20436271 TIN: 105686680
www.hypopenzije.rs Number of decision on granting operating license: G-br. 5002 Date of issue of decision: 16.06.2008. Appendices: Auditor’s opinion and balance sheets: 31/12/2007; 30/06/2008 List of Funds Number in the NBS register of voluntary pension funds: 1000750 Portfolio Manager: Filip Dimitrov Custody bank: Erste Bank a.d. Novi Sad, Bul. Mihajla Pupina 85 b, 11 070 Novi Beograd / Members of Managing Board: Paul Alan Kocher, Vladimir Čupić, Luka Kiso / Members of Executive Board Main shareholders: TOTAL Hypo Alpe-Adria-Bank AD Beograd 100.00% SOCIETE GENERALE PENZIJE 11071 Novi Beograd, Bul. Mihajla Pupina 115 đ Tel: 381 11 30 11 551 General Manager: Ivan Jovanović Registration number: 20438339 TIN: 105679519 Telephone: + 381 11 30 11 551 www.sogepenzije.rs Number of decision on granting operating license: G-br. 5206 Date of issue of decision: 19.06.2008. Appendices: Auditor’s opinion and balance sheets List of Funds DOBROVOLJNI PENZIJSKI FOND SOCIETE GENERALE ŠTEDNJA Number in the NBS register of voluntary pension funds: 1000847 Number and date of decision on granting license to organize and manage the Fund: G-br. 5207 06/19/2008 / Portfolio Manager: Marija Jevtić / Custody bank: Unicredit Bank Srbija a.d. Beograd, Rajićeva 27-29, 11 000 Beograd Appendices: Auditor’s opinion and balance sheets www.sogepenzije.rs DOBROVOLJNI PENZIJSKI FOND SOCIETE GENERALE EKVILIBRIO Number in the NBS register of voluntary pension funds: 1000944 Number and date of decision on granting license to organize and manage the Fund: G-br. 5215 06/19/2008 Portfolio Manager: Marija Jevtić Custody bank: Unicredit Bank Srbija a.d. Beograd, Rajićeva 27-29, 11 000 Beograd Appendices: Auditor’s opinion and balance sheets / www.sogepenzije.rs Members of Managing Board: Nicolas Yet, Branka Pavlović, Sonja Miladinovski, Philippe Dubois Members of Executive Board Main shareholders: TOTAL Societe Generale Banka Srbija a.d. Beograd 51% «SOGECAP, Societe anonyme d’assurance sur la vie et de capitalisation», Pariz 49% Source: NBS
Guide to Serbian Banking Sector / May 2009 79
DIRECTORY
BROKERS AB INVEST A.D., BEOGRAD ID 17201883 Adress: Bul. kralja Aleksandra 17 Director: Zoran Jončić Tel: +381 (11) 32-32-977, 30-33-891 E-mail: abinvest@eunet.yu www.ab-invest.com ABC BROKER A.D., BEOGRAD ID 20425512 Adress: Gandijeva 7/10 Director: Miloš Ignjatović Tel: +381 (11) 313-99-49; 228-23-27 E-mail: office@abcbroker.rs www. abcbroker.rs AC BROKER A.D., BEOGRAD ID 17402714 Adress: Knez Mihailova 11-15/ I President of Management board: Branislav Bogdanović Te: +381 (11) 202-77-00 E-mail: info@ac-broker.rs www.ac-broker.rs ALCO BROKER A.D., BEOGRAD ID 17107224 Adress: Požeška 65b Director: Biljana Aleksić Tel: +381 (11) 305-07-20; 305-07-21; 305-07-22; 305-07-23 E-mail: office@abroker.rs www.abroker.rs ALFA BROKER A.D., BEOGRAD ID 20339454 Adress: Bul. Arsenija Čarnojevića 74/5 Director: Dragovan Milićević Tel: +381 (11) 311-62-76; 212-96-89; E-mail: office@serbianstocks.com www.serbianstocks.com AS FINANCIAL CENTER A.D., BEOGRAD ID 17242385 Adress: Čika Ljubina 15 Director: Vladimir Popović Tel: +381 (11) 3281-419 2620-442 E-mail: office@asbroker.co.rs v.popovic@asbroker.co.rs www.asbroker.co.rs ATHENA CAPITAL A.D., BEOGRAD ID 20318686 Adress: Uskočka 8 Director: Vesna Kapor Tel: +381 (11) 262-94-63; 263-18-54 E-mail: office@athenacapital.co.rs www. www.athenacapital.co.rs BELGRADE INDEPENDENT BROKER A.D., BEOGRAD ID 17320858 Adress: Bul. Mihajla Pupina 117 Director: Rodoljub Todorović 80 Guide to Serbian Banking Sector / May 2009
Tel: +381 (11) 311-62-43 office@bibroker.co.yu www.bibroker.co.yu BEO MONET A.D., BEOGRAD ID 17453629 Adress: Knjeginje Ljubice 3 Director: Dragan Akšam Tel: +381 (11) 303-60-59; 30-33-563 E-mail: beomonet@ikomline.net www.beomonet.co.yu BEOPUBLIKUM, BROKERSKA KUĆA A.D., BEOGRAD ID 17355236 Adress: Obilićev venac 26 Director: Milan Milićević Tel: +381 (11) 334-51-71; 334-50-80 E-mail: publikum@infosky.net www.beopublicum.com BONITET GRUPA A.D., BEOGRAD BUDA CASH A.D, BEOGRAD ID 17324519 Adress: Ulica Kraljice Natalije 46-48 Director: Mašan Ercegović Tel: +381 (11) 3628-433; 3628-434; E-mail: office@bonitetgrupa.com www.bonitetgrupa.com BONITET GRUPA A.D., BUSINESS UNIT POŽAREVAC Adress: Stevana Maksimovića 2 Head of Business Unit: Dragan Miljkovic Tel: +381 (12) 543-466 BROKER NIŠ A.D., NIŠ ID 17257587 Adress: Dušanov bazar kula, lok. 209 Director: Žarko Šepa Tel: +381 (18) 523-869; 520-377 E-mail: office@brokernis.rs. www.brokernis.rs BROKER POINT A.D., BEOGRAD ID 17205714 Adress: Francuska 6/I Director: Nevenka Daničić Tel: +381 (11) 202-19-99; 323-57-02 E-mail: office@brokerpoint.co.yu www.broker.point.co.yu CAPITAL BROKER A.D., BEOGRAD ID 20420669 Adress: Niš, TPC Kalča, II/29/1 Director: Goran Vučurović Tel: +381 (18) 250-020; 295-550; 295-551; 295580; +381 (63) 426-657 E-mail: capitalbroker@nadlanu.com www. capitalbroker.rs CITADEL SECURITIES A.D., BEOGRAD ID 17326015 Adress: Vladimira Popovića 6, A603 Director: Aleksandar Bojović Tel: +381 (11) 222-36-66; 222-36-67; E-mail: office@citadel-securities.com www.citadel-secuties.com CITY BROKER A.D., BEOGRAD
ID 20163402 Adress: Nebojšina 8 President of Management Board: Stojan Dabić Tel: +381 (11) 383-69-13; 383-69-14; E-mail: firma@cbroker.rs www.cbroker.rs CONFIDENCE A.D., BEOGRAD ID 17380311 Adress: Bul. kralja Aleksandra 103 Director: Petar Pacanoski Tel: +381 (11) 382-05-59; 308 90 20; E-mail: office@confidence.co.yu www.confidence.co.yu CONVEST A.D., NOVI SAD ID 08700257 Adress: Zlatne grede 7 Director: Đorđe Čanak Tel: +381 (21) 422-081; 524-653; E-mail: convest@eunet.yu www.convest.co.yu DELTA BROKER A.D., BEOGRAD ID 17174088 Adress: Milentija Popovića 7b Director: Predrag Filipović Tel: +381 (11) 201-26-70; 201-26-90; E-mail: broker@deltabroker.rs www.deltabroker.rs DIL BROKER A.D., BEOGRAD ID 17249959 Adress: Terazije 43/II President of Management Board: Miloš Jovanović Tel: +381 (11) 323-59-02; 334-58-62; E-mail: office @dilbroker.co.rs www.dilbroker.co.rs DUNAV STOCKBROKER A.D., BEOGRAD ID 17170724 Adress: Kolarčeva 7/I President of Management Board: Goran Altaras dunavstockbroker@dunavstockbroker.com www.dunavstockbroker.com EAST WEST INVEST A.D., BEOGRAD ID 17252194 Adress: Avalska 12 Director: Zoran Stanić Tel: +381 (11) 308-98-16; 308-94-29; E-mail: ewistan@drenik.net www.eastwestinvest.co.rs EFG SECURITIES A.D. BEOGRAD PROSPERA SECURITIES A.D. BEOGRAD ID 17155563 Adress: Knez Mihailova 9 Director: Branka Kokanović Tel: +381 (11) 202-31-71; 202-31-80 E-mail: iradovic@efgsec.rs borika@efgsec.rs EFG SECURITIES A.D. BUSINESS UNIT NIŠ
Adress: Drvarska 4/6 Head of Business Unit: Tatjana Stojanović Tel: +381 (18) 295-700; 295-701 EMISSIO BROKER A.D., BEOGRADZEMUN ID 17377078 Adress: Karađorđeva 15/2 Director: Ljiljana Milovanović Tel: +381 (11) 307-60-64; 316-59-00; 316-59-01; 198-940 E-mail: emissio@beotel.net www.emissiobroker.com ENERGO BROKER A.D., BEOGRAD ID 17078933 Adress: Bul. Mihaila Pupina 10z/I Director: Jasmina Nedeljković Tel: +381(11) 213-06-77; 311-53-12; 311-52-62; 313-20-45; 311-53-13; 214-02-77; 213-83-20; 311-52-13; E-mail: broker@energobroker.rs www.energobroker.rs EURO FINEKS BROKER A.D., BEOGRAD ID 17319868 Adress: Imotska 1 Director: Borislav Knežević Tel: +381 (11) 246-46-24; 246-42-31; 246-26-23; 309-81-99; 309-69-20; 309-81-98; 309-69-30; 309-81-85; office@eurofineks.co.yu; fineks@eunet.yu www.eurofineks.co.yu FIDELITY BROKER A.D., NOVI SAD ID 08737606 Adress: Vojvođanskih brigada 17 Director: Slađana Bojović Tel: +381 (21) 426-460; 426-510 E-mail: fidelit@eunet.rs www.fidelity.co.rs FIMA INTERNATIONAL A.D. BEOGRAD ID 17542001 Adress: Trg Nikole Pašića 5 President of Management Board: Igor Markićević Tel: +381 (11) 302-16-11; 302-16-07; E-mail: office@fimaint.rs www.fima-int.com FIMAKS BROKER A.D., BEOGRAD ID 17341189 Adress: Nemanjina 32/3 Director: Miodrag Jovanović Tel: +381 (11) 361-04-37; 264-30-22 E-mail: broker@fimaks.co.yu www.fimaks.co.yu FIRST GLOBAL BROKERS A.D., BEOGRAD ID 17403150 Adress: Palmotićeva 13 Director: Ioannis Cholevas Tel: +381 (11) 328-51-84; 263-62-18; 328-58-64; 328-58-26 E-mail: brokers@fgb.co.yu; trading@fgb.co.yu; info@fgb.co.yu; operations@fgb.co.yu www.fgb.co.yu
GALENIKA BROKER A.D., BEOGRAD ZEMUN ID 17098748 Adress: Masarikov trg 8a President of Managemnt Board: Bojan Zobec Tel: +381 (11) 219-65-72; 316-22-60; 316-16-66; 307-60-46 E-mail: company@galenikabroker.co.rs www.galenikabroker.co.rs HOLDER BROKER A.D., BEOGRAD RANIJI NAZIV:NBA BROKER A.D. BEOGRAD ID 17205170 Adress: Bul. Mihaila Pupina 6 (PC Ušće) Director: Živorad Popović Tel: +381 (11) 212-92-56 E-mail: holder@holder-broker.co.rs www.holder-broker.co.rs HYPO ALPE ADRIA SECURITIES A.D., BEOGRAD ID 17560964 Adress: Bul. Mihajla Pupina 6 Director: Aleksandar Ivančević Zinaić Tel: +381 (11) 222-68-07; 222-68-99; 222-68-08; 222-68-96; 222-68-09; 222-68-10; 222-68-14; 222-68-11; E-mail securities@hypo-alpe-adria.co.yu www.hypo-securities.co.yu I2R BROKER A.D., NOVI SAD ID 20343141 Adress: Miletićeva 32 Director: Emil Gostiljac Tel: +381 (21) 472-89-29 E-mail: office@I2rbroker.com www.I2rbroker.com ILIRIKA INVESTMENTS A.D., BEOGRAD ID 17381369 Adress: Knez Mihajlova 11-15/ V Director: Igor Popović Tel: +381 (11) 330-1000 E-mail: info@ilirika.co.yu www.ilirika.co.yu ILIRIKA INVESTMENTS A.D – BUSINESS UNIT– TOPLIČIN VENAC, BEOGRAD Adress: Topličin venac br.3 Head of Business Unit: Damir Vuksanović Tel: ILIRIKA INVESTMENTS A.D – BUSINESS UNIT SUBOTICA Adress: Rajhlov park br.8 Head of Business Unit: Aleksandra Bukvić Tel: IMTEL TRADE A.D., BEOGRAD ID 17456415 Adress: Bul. Mihajla Pupina 165 b Director: Jovanka Danilović Tel: +381 (11) 301-68-22; 301-68-23; 213-17-40; 311-35-29 E-mail: office@imteltrade.com www.imteltrade.com
INTERCAPITAL A.D., BEOGRAD ID 20293560 Adress: Makenzijeva 23 Director: Željko Bedenic Tel: +381 (11) 3809 983 Fax : + 381 (11) 3837 600 E-mail: intercapital@intercapital.rs www.intercapital.rs INTERCITY BROKER A.D., BEOGRAD ID 17421506 Adress: Maksima Gorkog 52 President of Managemnt Board: Želimir Dabić Tel: +381 (11) 308-78-62; 308-31-00 E-mail: firma@icbbg.co.rs www.icbbg.co.rs INTERCITY BROKER A.D. – BUSINESS UNIT VRŠAC Adress: Zelena pijaca 12 Head of Business Unit: Ivana Senić Tel: +381 (13) 82-38-48 INVEST BROKER A.D., BEOGRAD ID 17177354 Adress: Dragoslava Jovanovića 13/II Director: Zoran Popović Tel: +381 (11) 24-86-50; 324-33-41; E-mail: investbroker@beotel.rs Web / ITM MONET A.D., BEOGRAD ID 17336967 Adress: Terazije 34 Director: Lazo Ostojić Tel: +381 (11) 3615-929; 3614-148 E-mail: itmmonet@beotel.yu www.itmmonet.co.yu JORGIĆ BROKER A.D., BEOGRAD ID 17162128 Adress: Bul. Mihajla Pupina 10-v-1 Director: Branislav Jorgić Tel: +381 (11) 311-78-35; 311-78-36; 311-78-40; 311-78-41 E-mail: jorgicb@ptt.yu www.jorgicbroker.co.yu JUBMES BROKER A.D., BEOGRAD ID 17203134 Adress: Bul. Zorana Đinđića 121 President of Managemnt Board: Darko Bendić Tel: +381 (11) 220-55-00; 220-57-32 E-mail: broker@jubmes.co.yu www.jubmesbroker.co.yu BDD KBC SECURITIES A.D. BEOGRAD RANIJI NAZIV SENZAL ID 17252461 Adress: Takovska 23-25 President of the Board of Directors: Ana Tripović Tel: +381 (11) 333 0 500 Fax: +381 (11) 333 0 502 E-mail: office@kbcsecurities.rs www.kbcsecurities.rs Guide to Serbian Banking Sector / May 2009 81
DIRECTORY KBK BROKER A.D., BEOGRAD MB: 17195638 Adress: Beogradska 52 Director: Dr Tomislav Brzaković Tel: +381 (11) 308-76-70; 308-76-90; E-mail: kbkbrok@eunet.rs; zpajic@kbkbroker.rs www.kbkbroker.rs M&V INVESTMENTS A.D., NOVI SAD ID 08614938 President of Management Board: Dragijana Radonjić Petrović Director: Jasmina Bjelić Adress: Trg Marije Trandafil 7 Tel: +381 (21) 661-27-88; 661-38-81; E-mail: ns@mvi.rs M&V INVESTMENTS A.D. – BUSINESS UNIT BEOGRAD Adress: Bul. Mihajla Pupina 115E Tel: +381 (11) 353-09-00 E-mail: bg@mvi.rs www.mvi.rs MAKLER INVEST A.D., BEOGRAD ID 17165828 Adress: Kosovska 17/I Director: Dragoljub Perišić Tel: +381 (11) 334-53-51; 324-22-44 E-mail: office@maklerinvest.co.yu www.maklerinvest.co.yu MAX DILL A.D., ČAČAK ID 17110845 Adress: Gradsko šetalište bb I/1 Presdinet of Management Board: Vesna Stanković Tel: +381 (32) 222-277; 227-516; 344-140 E-mail: office@maxdill.co.yu www.maxdill.co.yu MAX DILL A.D. – BUSINESS UNIT - BEOGRAD Adress: Vojvode Brane 18G, OAZA Head of Business Unit: Lozica Knežević Tel: +381 (11) 380-77-87 MEDIOLANUM INVEST A.D., BEOGRAD ID 17163531 Adress: Augusta Cesarca 24b President of Managemnt Board: Velimir Jovanović Tel: +381 (11) 367-01-37; 367-01-38 office@mediolanuminvest.co.yu www.mediolanuminvest.co.yu MERIDIAN INVEST A.D., BEOGRAD ID 17456733 Adress: Kolarčeva 7/III Director: Tatjana Mrvić Tel: +381 (11) 330-58-76; 330-59-08 Fax: +381 11 33-05-977 E-mail: mebainv@meridian-invest.com www.meridian-invest.com MOMENTUM SECURITIES A.D., NOVI SAD ID 20319780 Adress: Futoška 1A, Novi Sad Director: Darko Tankosić 82 Guide to Serbian Banking Sector / May 2009
Tel: +381 (21) 672-87-00; 672-87-07; Fax: +381 (21) 452-895 E-mail: office@momentum.rs www.momentum.rs OLIMPIA INVEST A.D., BEOGRAD ID 20175583 Adress: Bul. Arsenija Čarnojevića 54A/IV Director: Jasminka Banjanin Tel: +381 (11) 21-29-299; 311-09-70; 21-29-872; 313-26-74; 21-29-873; fax. +381 (11) 313-39-79 E-mail: office@olimpiainvest.co.rs www.olimpiainvest.co.rs BDD PROBROKER A.D., BEOGRAD ID 20036338 Adress: Kralja Petra 45/IV Director: Svetlana Petković Tel: +381 (11) 320-97-07; 323-99-92; E-mail: office@probroker.co.rs www.probroker.co.rs SAB MONET A.D., BEOGRAD ID 17333917 Adress: Trg Republike 5/7 President of Managemnt Board: Vladimir Grabež Tel: +381 (11) 382-10-02; 382-10-04; 382-10-03; 382-16-49 E-mail: sabmonet@yubc.net www.sabmonet.com SBD BROKER A.D., SUBOTICA ID 08724792 Adress: Trg Cara Jovana Nenada 15 President of Managemnet Board: Radivoj Belančić Tel: +381 (24) 558-275; 520-809; www.sbdbroker.co.rs office@sbdbroker.co.rs SINTEZA INVEST GROUP A.D., BEOGRAD ID 17456164 Adress: Jurija Gagarina.32 Director: Srđan Bošković Tel: +381 (11) 209-95-00; 209-95-50 E-mail: info@sinteza.net www.sinteza.net/index.php SYNERGY CAPITAL A.D., BEOGRAD ID 17418068 Adress: PC Ušće, Bul. Mihajla Pupina 6 President of Management Board: Branka Galjak Tel: +381 (11) 220-08-68; Fax: +381 (11) E-mail: office@syn-cap.com www.syn-cap.com TANDEM FINANCIAL A.D., NOVI SAD ID 17341324 Adress: Miroslava Antića 4 Director: Nenad Orozović Tel: +381 (21) 425-777; 425-192 E-mail: office@tandemfin.com www.tandemfin.com TDK BROKER A.D., ČAČAK
ID 17584782 Adress: Rajićeva 5-7 Director: Vera Stojković Tel: +381 (32) 340-610; 340-611; 340-205 E-mail: tdklbroker@sezampro.rs www. Error! Hyperlink reference not valid. TEMA BROKER A.D., BEOGRAD ID 08739951 Adress: Zagorska 13B, Zemun Director: Jelena Vasiljević Tel: +381 (11) 261-17-99; 261-15-99; 261-11-33; 261-11-99; 316-30-33 E-mail: info@temabroker.rs www.temabroker.rs TEZORO BROKER A.D., BEOGRAD ID 17417606 Adress: Strahinjića Bana 26, Beograd Director: Zoran Đerković Tel: +381 (11) 263-23-46; 20-30-516; 263-20-57; 20-30-020; 20-30-518 E-mail: office@tezorobroker.co.rs www.tezorobroker.co.rs TRUST BROKER A.D., NOVI SAD ID 20303336 Adress: Stražilovska 31 Director: Aleksandra Molnar-Pantelić Tel: +381 (21) 475-08-45; 475-08-46, 479-21-80; 679-21-80 E-mail: info@trustbroker.rs www.trustbroker.rs TRŽIŠTE NOVCA A.D., BEOGRAD ID 07458975 Adress: Vojvode Milenka 40 President of Managemant Board: Predrag Rajačić Tel: +381 (11) 361-24-30; 361-25-10; 361-38-46; 361-74-79; 361-22-86 E-mail: info@tn.rs / www. www.tn.rs VANGUARD A.D., BEOGRAD ID 20447753 Adress: Carice Milice 3 Director: Aleksandra Milutinović Tel: +381 11 2180-200 2185-700 WESTERN BALKAN BROKER A.D., BEOGRAD ID 20320869 Adress: Molerova 64 Director: Nebojša Krstić Tel: +381 (11) 3444-784; 3444-794; 3446-957; 3445-812 E-mail: office@wbb.rs www.wbb.rs ŠUMADIJA BROKER A.D., KRAGUJEVAC ID 17312502 Adress: dr Zorana Đinđića 15a Director: Vitomir Jurišić Tel: +381 (34) 303-011; 303-085; E-mail: sumbrok@eunet.yu www.sumadija-broker.co.yu Source: Securities Commission