annual report for the year 2014 - bcr24 26 27 bcr chişinău – annual report 2014 pag. 3 of 31...

March, 2015

Annual report for the year 2014 Banca Comercială Română Chişinău S.A.

BCR Chişinău – Annual Report 2014 pag. 2 of 31

S U M M A R Y

PAG.

EXECUTIVE SUMMARY

I. GENERAL INFORMATION ABOUT BANK’S ACTIVITY

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II. MACROECONOMIC ENVIRONMENT AND BANK’S POSITION ON THE BANK SERVICES MARKET

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III. FINANCIAL SITUATION OF BCR CHIȘINĂU S.A. IN 2011 8

ASSETS 8

LIABILITIES 9

ANALYSIS OF INCOME AND EXPENSES 12

IV. CLIENTS 14

V. CREDITING ACTIVITY 15

VI. FINANCING 19

VII. ACTIVITY ON THE FOREX MARKET 19

VIII. ACTIVITY ON THE INVESTMENT MARKET OF MOLDOVA 20

IX. OPERATIONS WITH CARDS 21

X. E - CHANNELS 21

XI. INFORMATIONAL TECHNOLOGIES 21

XII. CORPORATE GOVERNANCE

XIII. RISK MANAGEMENT

XIV. ACTIVITY OF HUMAN RESOURSES AND ORGANISATIONAL STRUCTURE

XV. ANNEXES

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EXECUTIVE SUMMARY

In 2014 BCR Chișinău S.A. has finalised the restructuring process started in 2013, has improved its operational efficiency by optimising support functions, has consolidated its corporate clients portofolio by strengthening commercial capabilities of the Bank and has improved its internal control systems related to risk management and compliance activity.

The operational performance of the Bank significantly improved, in the operational profit for 2014 amounting to 21.7 million lei, 77.8% more than in previous year. This performance was due mainly to the concentration of bank efforts to improve customer service and to enlarge products and services portfolio. The operational income increased by 11.0% especially due to the increase of net interest income.The general and administrative expenses decreased by 4.7%, as a result of cost efficiency and restructuring process started in 2013.

Following the bank management decision to increase provisions, calculated in accordance with International Financial Reporting Standards (IFRS) and strict prudential requirements applied in BCR/ Erste Group, BCR Chisinau ended 2014 year with a net loss of 3.7 million lei. In this context, the coverage on nonperforming loans by provisions calculated according to IFRS has increased from 17.5% in 2013 to 37.5% in 2014. These measures have been adopted taking into account the macroeconomic trends within the country, the bank’s credit risk management policies and the bank’s management vision to ensure durability and sustainability of the business and to establish adequate protection against eventual risks.

The financial situation of BCR Chisinau remains robust, as the main indicators increased. The total assets of the bank amounted to 1078.2 million lei, increasing by 9.8% in comparison with the end of 2013. At December 31, 2014 the deposits portfolio amounted to 513.9 million lei, increasing by 4.8% in comparison with the end of 2013. The total capital of the bank at December 31, 2014 amounted to 383.5 million lei, increasing by 33.6% in comparison with the end of 2013. The Total Normative Capital of BCR Chisinau at December 31, 2014 amounted to 304.8 million lei, increasing by 18.6% in comparison with the end of 2013. Therefore, the capitalisation of the bank remains high and will easily absorb the increased provisions and will remain solid to support the healthy growth of all business lines of the bank in subsequent years.


I. GENERAL INFORMATION ABOUT BANK’S ACTIVITY

BCR Chișinău S.A. was founded in October 1998. The Bank is offering a large spectrum of services to all categories of clients through a head Office, nd two branches: one branch in Balti and one in Chisinau. Starting with June 2, 2014 BCR Chișinău openned a new agency Chișinău. The Agency works mainly with individuals that are clients of Consular Division of Romanian Embassy in Chișinău, that can make payments and change currencies in the new unit of the bank.

The main focus at foundation of the Bank was to offer qualitative services to the clients involved in different industries in the Republic of Moldova. Thus, BCR Chișinău S.A. became an universal financial institution. At the moment the Bank is a dynamic and professional participant on the financial market of the Republic of Moldova.

Policy of the Bank is oriented towards increasing the value of investments made by its shareholders through a profitable activity and development of the bank to ensure stability to its assets against impairment and increase the market value of the Bank. BCR Chișinău S.A. is activating according to its Charter and License issued to the National bank of Moldova.

The unique shareholder of the Bank is Banca Comercială Română S.A., holding 72,813 shares with a nominal value of 10,000 lei.

As at 31.12.2014 the share capital of the Bank was 728.13 million lei.

External auditor for 2014 was international audit company “Ernst&Young” SRL that expresses its opinion on the correctness of the BCR Chișinău S.A. financial statements.

Information presented in report for 2013 and 2014 was prepared in accordance with the International Financial Reporting Standards (IFRS).

II. MACROECONOMIC ENVIRONMENT AND BANK’S POSITION ON THE BANK SERVICES MARKET

Gross domestic product (GDP) In 2014 the nominal value of GDP amounted to 111,501

mil. lei, at current prices, with a real increase of 4.6% compared to previous year. Gross value added

in goods sector has increased by 7.7% in comparison with previous year and had contributed to GDP

formation with +2.0%. The main increase was registered for agriculture, hunting, forestry and fishing

by 8.2% and 7.2% in comparison with previous year. The goods sector had contributed to GDP

formation with 26.9%. Services gross value added increased by 4.2% in comparison to previous

year, and has contributed to GDP formation and growth with 2.4%. Gross value added in

constructions has increased by 10.6% in comparison with previous year followed by retail and

wholesale trade (+6.1%), transport and communications (+3.4%) and „other servicde activities”

(+3.0%). Services sector had contributed to GDP formation with 59.4%. The volume of product taxes

in 2014 increased by 1.2% in comparison with previous year and had a contributed to GDP formation

and growth with 16.0% and 0.2% accordingly. Final consumption has increased by 2.4% in

comparison with previous year and had a positive influence of (+2.8%) on GDP evolution. Increase

was conditioned by higher final consumption (+2.9%) of population. Gross fixed capital formation

exceeded by 10.1% the previous year result, contributing with 24.6% to GDP formation and with

2.3% increase in GDP. Export and import of goods and services increased by 1.1% and 0.4% in

comparison with 2013.

The average monthly salary per employee in the economy in 2014 amounted to 4,172 lei and increased by 10.8% in nominal terms compared to 2013. In December 2014 the average salary amounted to 4,865.4 lei, 13.7% more than in December 2013. The average monthly salary in public sector in December 2014 amounted to 4,000.4 lei (+14.4% higher than in December 2013). The average monthly salary in the real sector of the economy amounted to 5,233.5 lei (+13.7% higher than in December 2013).


The annual rate of inflation has returned close to the target stipulated in the Medium-term

monetary policy strategy and reached the level of 4.8 percent in the fourth quarter of 2014, by 0.3 percentage points higher than in the third quarter of 2014. The decrease in the CPI annual rate was driven primarily by lower pressures from food and regulated price.

Basic inflation as at the year-end 2014 continued its ascending trend started in autumn

2013, increasing from 5.5 percent in Q3 2014 to 6.0 percent in Q4 2014. Price increase were conditioned by cost effects asa result of the national currency depreciation against the currencies of major trading partners. Thus, in December 2014, compared with the same month of previous year, the national currency has depreciated by 18.3 percent against USD and with 6.6 percent against EUR.

BANKING SYSTEM

As at 31.12.2014 on the territory of the Republic of Moldova were activating 14 commercial banks.

Based on assets volume the banks from the Republic of Moldova can be split into the following groups:

1. „Large” banks with assets volume greater than 3 billion lei; 2. „Medium” banks with assets volume 1-3 billion lei; 3. „Small” banks with assets volume less than 1 billion lei.

During 2014 the banking sector from the Republic of Moldova has registered general positive development trends.

Table 1

Balance Sheet Indicators

Indicators 31.12.2013 31.12.2014 Change

Million lei Million lei %

Total assets 76,184.00 97,584.41 28.09%

Loans 41,029.80 39,135.23 -4.62%

Risk weighted assets 34,899.40 68,378.07 95.93%

Total deposits 55,270.35 66,895.42 21.03%

Capital 11,431.07 12,431.44 8.75%

The assets totaled MDL 97,584.41 million as on December 31, 2014, increasing by MDL 21,400.41 million compared with 2013 (28.09%).

At the year end Tier I capital (the resilience of banking system to eventual financial difficulties) increased by 781 million compared to 2013, reaching the level of MDL 8,707 million. As on December 31, 2014 the Tier I capital of all banks complied with the minimum required capital (minimum required level is MDL 200 million).

The share of foreign investments in the licensed banks was 77.56 percent on December 31, 2014 with 5.5 percentage points more than at the end of 2013.

Average risk-weighted capital adequacy on the system as at 31.12.2014 was 13.21 percent, decreasing by 10.19 percentage points and was under the minimum required level of 16 percent. Decrease in risk-weighted capital adequacy was mainly influenced by transactions in banks with special administration of National Bank of Moldova.


Table 2

Assets quality, liquidity and solvency indicators

Indicators 31.12.2013 31.12.2014 Change (%)

Nonperforming loans / Total Loans 11.60% 11.73% 0.13%

Provisions for loan losses / Totral Loans ratio 9.70% 10.37% 0.67%

Solvency ratio 23.40% 13.21% -10.19%

Liquidity ratio 33.80% 21.63% -12.17%

As of December 31, 2014 the balance of loans, according to prudential reports of December 31, 2014 amounted to MDL 39,135.2 million or by 4.6 percent less than previous year. The portfolio quality has also improved, the non-performing loans in absolute value recording the value of MDL 4,790.3 million or by 1.9 percent less than at the end of previous year. The share of net non-performing loans in total regulatory capital decreased by 2.4 percentage points, up to 14.2 percent as on December 31, 2014, which indicates reduced risks of capital loss.

Table 3

Profitability indicators

um/mil. lei

Indicators 31.12.2013 31.12.2014 Change

Net profit 1,020.20 778.23 -241.97

Net Interest Income 2,082.43 2,518.77 436.34

ROA 1.60% 0.92% -0.68%

ROE 9.40% 6.37% -3.03%

Net Interest margin 3.90% 3.95% 0.05%

Efficiency index 135.20% 119.34% -15.86%

After closing 2013 with a profit of 1.02 million. lei, moldovan banking sector last year had more modest results. Overall, banks have generated a profit of over 778 mil. Lei. Only three banks but can boast outstanding results, while three others reported losses. Financial results show that the inefficiency of two of the institutions to which the National Bank of Moldova (NBM) established the special administration - Banca de Economii and Banca Socială - has adversely affected the entire banking system.

Return on assets and return on equity represented 0.9 percent and 6.37 percent as on December 31, 2014, decreasing by 1.6 percentage points and 9.4 percentage points compared to December 31, 2013.

Current liquidity on the system (liquid assets, expressed in cash, deposits with the NBM, liquid securities, and net interbank credits with maturity up to one month / total assets ×100% ≥ 20 percent) accounted for 21.63 percent. The respective values of liquidity indicators show the existence of adequate sources to support the payments related to liabilities and determine the soundness of banks to possible external shocks.


FOREX MARKET

During 2014 the official nominal exchange rate of the local currency reported to US dollar has depreciated by 19.6 percent (13.057 lei for 1 US dollar as at 31 December 2013 up to 15.6152 lei for 1 US dollar as at 31 December 2014), and reported to Euro it has depreciated by 5.7 percent (17.9697 lei for 1 Euro as at 31 December 2013 up to 18.9966 lei for 1 Euro as at 31 December 2014).

In 2014 Euro depreciated against US dollar by 11.6%, Russian rubble by 42.0%, and Romanian leu depreciated by 12.0%.

INSTRUMENTS OF MONETARY POLICY

Interest rate policy

Given the gradual rise of pro-inflationary risks over the last months of 2014, the National Bank of Moldova conducted in December two successfully increase in the monetary policy rate (by 1.0 percentage points, respectively, 2.0 percentage points) to the level of 6.5 percent.

Sale of NBM Certificates

During the fourth quarter of 2014, the excess liquidity in the banking system was drained exclusively by the NBM certificates selling operations with a maturity of 14 days. The NBM carried out 25 auctions with the announcement of the maximum interest rate equivalent to the NBM base rate. The participants’ bids were fully awarded. Following that the interest rates asked in the bids were equal to the maximum rate announced at the auctions, the NBC were sold at an interest rate equivalent to the NBM base rate.

During the fourth quarter of 2014, the average weighted sterilization operations amounted to 3.59 percent annually. Investments stock in NBM certificates essentially decreased towards the end of the reference quarter (- 1,042.6 million from the level recorded at the end of the previous quarter) and recorded 219.7 million lei. However, due to higher stock values of NBM investments made during the quarter, their average was slightly higher than in the third quarter of 2014 accounted for 882.4 million lei.

Mandatory reserves

In the fourth quarter of 2014, along with open market operations, the required reserves mechanism continued to exercise the monetary control and the liquidity management function in the banking system. The characteristics of the required reserves regime were maintained unchanged throughout the quarter.

Required reserves in MDL related to the attracted means tracking period of November 8 – December 7, 2014 maintained by banks during December 8, 2014 – January 7, 2015 constituted MDL 2,693.3 million, decreasing by 1,031.7 million (27.7 percent) compared to the tracking period of August 8 – September 7, 2014 maintained by banks during September 8 – October 7, 2014.

Required reserves in FCC held by banks with the NBM constituted USD 55.6 million and EUR 98.9 million as of December 31, 2014. Compared to the end of the previous quarter, the required reserves in FCC decresed by 23.2 percent and 11.1 percent accordingly.

During the reporting period, both required reserves in MDL and FCC have diminished as a reslt of special regime of mandatory reserve constitution for the moratorium of banks under special administration.

FINANCIAL ASSETS MARKET

The maximum interest rate of the state bonds amounted to 9.99% (in 2013 – 7.98%), and minimum rate – 3.73% (2013 – 3.58%).


III. FINANCIAL SITUATION OF BCR CHIȘINĂU S.A. IN 2014

ASSETS

Assets of BCR Chișinău S.A. as at 31.12.2014 amounted to 1,078.23 million lei. During 2014

the assets value increased by 9.9% (or 96.66 million lei), with a decrease in market share from 1.29% to 1.10%. The share of interest bearing assets consisting 88.4%, and the share of liquid assets – around 54.60% of total assets.

In 2014 interest bearing assets increased by 198.49 million lei (or 26.3%), amounting to 953.48 million lei. This change was due to increase in the volumes of interest bearing assets: interbank placements and financial assets.

Maintaining the liquid and interest bearing assets at such a level, the bank places its resources into profitable operations, obtaining sufficient income for further development. At the same time, the bank maintains its liquidity in order to be able at any time to honour the obligations towards de clients. Bank’s liquidity as at 31 December 2014, according to both principles of calculations amounted to 0.67 and 54.60%.

Diagram 1

In the assets structure has changed the share of interest bearing assets, the main increase

being registered for placements in banks: from 4.1% in 2013 to 19.0% in 2014 and the share of financial assets increased from 36.5% at year-end 2013 to 39.0% at year-end 2014.

At the same time, has reduced the share of loans from 46.7% in 2013 to 34.4% in 2014, and NBM placements reduced from 11.9% in 2013 to 8.2% in 2014.


Diagram 2

In 2014 the Bank placed its resources in State Bonds, and NBM instruments (bank certificates).

LIABILITIES

Liabilities and share capital are sources of financing the operations of the Bank. As at 31.12.2014 the share of Bank’s capital 36% and its liabilities – 64%.


Diagram 3

Structure of liabilities

Bank’s liabilities as at 31.12.2014 amounted to 689.20 million lei, decreasing by 0.8% (or 5.41 million lei). In 2014 the Bank was focused on making the clients portfolio more efficient, resulting in an influence in movements and maintenance of deposit balances of the clients. The volume of individuals deposit accounts decreased by 4% (or 4.1 million lei), while the volumes of legal entities deposit accounts increased by 32% (or 82.3 million lei).

During 2014 the Bank’s strategy on attracting the funds was oriented on attracting the deposits from clients at lower costs. The Bank focused on attracting demand and term deposits from legal entities that have a lower interest rate. At the same time, the volume of interbank deposits has decreased considerably during the year.


Diagram 4

Diagram 5


Diagram 6

Analysis of income and expenses

Based on 2014 results the Bank registered a net loss of 3.72 million lei, compared to net profit in amount of 7.32 million lei in 2013. It should be mentioned that BCR Chisinau has increased its operational profit by 78% up to 21.7 million lei, and the loss was due to the bank management decision to increase provisions.


Diagram 7

Total income decreased by 3.36% amounting to 95.11 million lei, while total expenses amounted to 97.29 million lei, increasing by 17.47%.

The main share in total income (77.7%) owns interest income, amounting to 73.93 million lei showing an increase by 4.85% compared to 2013. Non-interest income in amount of 21.19 million lei decreased by 24.1% compared with previous year.

Decrease in interest income was caused by the reduction in loan portfolio. At the same time, placements in financial assets have increased, along with higher IR for these assets.

Commission income decreased in 2014 by 10.8% compared to previous year. The main decrease being registered for loans comissions, followed by commissions for guaranties issued (41.1% and 59.4% accordingly).

Total expenses (Total interest and non-interest expenses) amounted 97.29 million lei in 2014. The main share in total expenses has salary expenses, other general and administrative expenses and interest expense on clients deposits.

In 2014 the average interest rates for deposits attracted from legal entities increased by 1.19 p.p. for the banking sector for deposits in local currency from 3.00% in January to 4.19% in December and increased by 0.31 p.p. for foreign currency: from 3.22% to 3.53%.

The Bank attracted term deposits in lei as well as in foreign currencies from legal entities at interest rates lower than average rates per bank sector. The average interest rate for deposits in lei was 0.66% compared to 3.00% per sector, and for deposits in foreign currencies the interest rate was 0.47% compared to 3.07% average per sector.

For deposits attracted from individuals was registered an increase in interest rate for the whole bank sector for deposits in lei by 0.50 p.p. – from 7.62% to 8.12%, and IR for deposits in foreign currencies decreased by 0.63 p.p. – from 4.77% in January to 4.14% in December 2014. BCR Chișinău S.A. for its products in local and foreign currency maintained an average interest rate lower than the market one. Therefore, the annual average IR for deposits in lei was 6.19% compared to 7.7% per bank sector, and in foreign currency was 2.46% compared to 4.51% per bank sector.


IV. CLIENTS

The basis for offering services to clients was to offer to its clients an integral and modern set bank services and products. The quality of offered services is permanently maintained at international standards level. In 2014 the number of clients decreased by 23% (from 18,317 in 2013 to 14,100), and the number of accounts decreased by 22% (from 27,038 to 21,215 accounts). The decrease in the number of accounts was registered mainly for individuals (-28.6%, from 19,978 to 14,263 accounts, and -26.3%, from 15,966 to 11,772 clients), showing an efficient development of clients portfolio.

Diagram 8

It should be mentioned the fact that, besides corporate clients that have active accounts, the Bank serves many clients without opening an account. These are payments made for the benefit of service suppliers, money transfers through international payment systems, Forex operations etc.

BCR Chișinău S.A. offers to its clients a large set of services, including settlement services, paymentsfor loans, Forex, salary projects etc.

The Bank guarantees to its clients:

Confidentiality;

Individual approach and flexibility in relations;

Complete information about the activity of the Bank.


V. CREDITING ACTIVITY

In 2014 BCR Chișinău S.A. continued to develop and improve its crediting policy.

Bank’s crediting policy was very rationale in 2014. The bank focused mainly on lending Corporate clients with a good financial standing and an impeccable reputation, continuing the administration of existing loans granted to individuals and micro-entreprises. Also, the bank relaunched credit activity for retail clients by offering financing solutions to corporate clients’ employees.

Priority directions of Bank credit activity were oriented towards the following sectors:

1. Industry and trade;

2. Processing industry;

The main focus of credit activity of the Bank in 2014 was to insure profitable placements of funds with a minimum risk through:

Rigorous selection of potential clients.

Improvement of loan portfolio quality.

Diversification of services rendered to its clients.

Diversification of portfolio depending on the loan term, mortgage type, industry of the client.

As of 31.12.2014 the volume of loan portfolio amounted 447.8 million lei, representing 41.5% of total assets. It should be mentioned that in 2014 the bank completed the restructuration of its activity, which consisted in focusing the efforts on granting loans to corporate clients. This conditioned a slight decrease of loan portfolio, by repayment of the existing loans granted to individuals and micro-entreprises.

BCR Chișinău S.A. placed on 12th place on the market based on loan portfolio, with a share of 1.10% that represents a decrease by 0.05 p.p. compared to previous year.

Loans volume. In 2014 the Bank clients benefited from 62 loans in total amount of 199.44 million lei.

Diagram 9

Loan portfolio quality: As at 31.12.2014 the main share in the loans portfolio had performant loans (classified in „Standard” and „Watch” risk category) – 68.2% (as at 31.12.2013 – 75.5%).


Diagram 10

Indicator of nonperfoming loans / total portfolio is 31.72 p.p., being higher by 20.03 p.p. than the bank sector (11.73%).

Table 4

Indicators of loan portfolio quality

Indicator

31.12.2013 31.12.2014 Change

Unfavourable Loans / Loans ratio 24.72% 31.75% 7.03%

Provisions for loan losses/ Loans ratio 11.16% 15.05% 3.89%

Large Loans/Capital ratio 29.06% 28.09% -0.97%


Diagram 11

In 2014 the structure of loan portfolio divided by industries has changed significantly compared to 2013. The share of loans granted to industry and constructions increased from 12.2% and 10.3% in 2013 to 13.5% and 18.6% in 2014 accordingly, while loans granted for services and consumer loans decreased from to 47.0% and 28.5% in 2013 to 42.4% and 24.9% in 2014 accordingly.


Diagram 12

According to market trend of overall bank sector, as well as BCR Chisinau S.A., the interest rate for new issued loans has diminished. Thereof, the average interest rate for loans in lei granted to legal entities in 2014 decreased compared to 2013 by 1.50 p.p. (from 12.14% to 10.64%), and for loans in currency decreased by 0.12 p.p. (from 7.83% to 7.71%). The average interest rate for loans granted in lei to individuals decreased by 0.78 p.p. (from 12.82% to 12.04%) and for for loans granted in foreign currency increased by 4.03 p.p. (from 7.81% to 11.84%).

Compared to bank sector BCR Chișinău S.A. granted loans in lei to legal entities at a lower rate during 2014: 9.94% compared to 10.25% per bank sector.

The bank granted loans in currencies to legal entities at a rate lower than IR per bank sector: 6.67% compared to 8.11% per bank sector.

The average IR for new granted loans to individuals in local currency was lower than per bank sector: 10.06% compared to 12.37% per bank sector.

In 2015 the Bank plans to maintain a high quality of loan portfolio through an efficient and well developed crediting policy.


VI. FINANCING

2014 was again a very difficult year not only for BCR Chișinău S.A., but for the whole bank sector of the Republic of Moldova. Due to an efficient liquidity and risk management resulted in a net operational income of 21.7 million lei (77.8% higher than in previus year).

Capital. At the year-end 2014 the share capital amounted to 728.13 million lei (2013: 627.58 million lei).

As at the year-end 2014 The Tier I Capital amounted to 328.8 million lei.

Table 5

Nr. Indicators Normative Value

1 Total Normative Capital (TNC) (million lei) min 150 mln. lei 304.76

2 Solvency (%) min 12% 137.17%

3 Long term liquidity (P I) max 1 0.67

4 Current liquidity (P II) min 20% 54.60

5 Large exposures max 5 times 0.11

VII. ACTIVITY ON FOREX MARKET

The activity on the Forex market in 2014 was oriented towards: currency conversion transactions, clients’ operations with foreign currencies, contracts for placing and attracting funds etc.

The strategy for Forex operations on the market was determined by the following factors:

Increase of the clients base;

Increase of the clients number that perform transactions of currency buying/selling;

Dynamic of official exchange rate of the NBM.

It should be mentioned that BCR Chișinău S.A. has 3 units of currency exchange that operates with 5 currencies. The main operating currencies remained US dollar and Euro, having a share of – 94% of all operations in 2014, decreasing from 95% in 2013. In 2014 has decreased the share of operations in Euro to 78% (82% in 2013). For USD the share increased to 16.1% in 2014 (13.7% in 2013).

Volume of assets in currencies increased by 10.4% compared to 31.12.2013, amounting to – 498.6 million lei as at 31.12.2014 (46.24% of total assets).

Movements of currency buying/selling transactions in 2014 amounted to 777.8 million lei, including inter-banking operations of 77.21% and cash operations – 22.79%. The movements have increased compared to 2013 by 52% (or 266 million lei). The interbank operations increased by 68.64% (or 244.4 million lei), while cash operations increased by 13.82% (or 21.56 million lei).

Income from Forex transactions in 2014 amounted to 6.23 million lei, which is 30.24% lower than in 2013.


VIII. ACTIVITY ON THE INVESTMENT MARKET OF MOLDOVA

Another important element in the assets structure is the investment activity. The advantage of placing the funds into securities is the stable income with a minimum risk level and the possibility to manage the Bank’s liquidity.

Diagram 13

Analysis of investment portfolio (volumes in million lei)

In 2014 the Bank placed a great amount of funds into acquisition of TB and NBM Certificates, generating 20.66 million lei (or 21.72% of total income) of income from investment activity. Compared to the previous year the income has increased by 121% (or 9.69 million lei).

Investment portfolio volume as at 31.12.2014 amounted to 343.99 million lei.

Diagram 14

Dynamic of changes in average volumes of investments and related income (In million lei)


IX. OPERATIONS WITH BANK CARDS

In 2014 the cards issued by BCR Chișinău S.A. amounted to 3,130 units, card portfolio at the end of 2014 was 4,330 units (incl. 1,404 VISA with chip). As at the end of 2014 the Bank had a 0.45% share on the bank cards market in Republic of Moldova.

In 2014 the transactions at ATMs BCRC decreased by 20.6% as volume and 23.4% as number, with a national market share of 4.0%.

At 31.12.2014 the card accounts balance amounted to 22,7 mil. MDL, which represents 88% of the indicator for 2013 and the volume of transactions on cards accounts, amounted to 184.5 mil. MDL which represents 80% of the indicator for 2013.

X. E - CHANNELS

Taking into consideration the need to align bank’s services offer at customer requests and importance of existing alternative channels to compensate low level of network dimension, alternative sales channels represent a strategic concern of Bank strategy. On May 20, 2014 was launched the new Internet Banking - 24Banking, including services offered to individuals.

Based on this strategy, in 2014 were signed 241 new Internet banking contracts and were closed 18 inactive Internet Banking contracts. In 2014 transactions through Internet Banking increased by 82,5 % of the indicator for 2013 ( 9,593 mil. MDL in 2014) and the number of transactions decreased with 11%. of the indicator for 2013 ( 92,858 transactions in 2014).

XI. INFORMATIONAL TEHNOLOGIES OF THE BANK

The worldwide paradigm is changing significantly. The requirements for quick access to services and information, the exponential increase of data complexity is increasing the role of IT in banking sector. The change in risk approach, regulatory requirements, big data processing requirements forces allocation of resources to IT area. Most of the financial groups of Europe has increased their budgets in IT sector to insure compliance to many new regulations and to satisfy the demand of clients that require quick access to financial services through electronic devices. The level of services provided face to face is decreasing fast in favour of electronic channels. A high level of services in banking sector can be ensured only using modern information technologies.

There is no doubt that bank’s customers are generally attracted by bank’s products with low interest and not by modern e-banking services, but they can be kept by such instruments. On day banking customers will become more demanding, better documented, requiring effective benefits, characterized by professionalism and confidentiality while. Although this type of service is not a profit center, BCR Chisinau will continue to invest in improving these systems, as they allow getting customers loyalty. International studies show that the number of those who use electronic solutions is constantly growing and in the future, the customers will refuse the banks that do not offer quality electronic services.

IT today has a key role in the activity and development of a banking business. BCR Chișinău has a Data Centre in compliance to international standards. New implemented infrastructure in BCR assures a high performance production network, a modern server and data storage infrastructure. Implementation of new technologies and infrastructure upgrades insures the bank and the client a high level of reliability, processing speed and redundancy of information systems. Bank has modern technology network of IP telephony that interconnects all bank sites. IVR service and Call Centre (Info BCR), Internet site and Intranet Portal is constantly improved to insure a large range of services and quicker access to information provided to internal and external clients based on new technologies implemented by leading companies in the field of communication and data processing services.

During 2014, year of the complex reorganization of the BCR Chisinau, one of the central objectives was to maintain the bank's operational activity and continuing of ongoing projects. In this


period bank has successfully implemented several new projects in IT, namely: a new Disaster Recovery Datacenter in an alternative location based on TIA 942 standards, guaranteeing bank activity in case of extreme situations (Business Continuity cases).

In order to give bank’s customers an opportunity to use new technologies that lead to time saving and greater security at the same time, bank developed a new solution on the market "INFOCONT", a solution that enables alignment of the bank to Government of the Republic of Moldova strategy "Digital Moldova 2020”. This solution gives the possibility to customers to get the bank’s account extract remotely from application in PDF format with digital signature and legal force without having to go to the bank after the daily paper extract. Through this solution, the client is always in Online with information about its accounts from every part of the globe, but downloaded account statement can be stored in the client applications.

Other important projects implemented during 2014 were Internet Banking solution and SMS Alerts.

BCR Chisinau has implemented modern and efficient systems that duplicate information online and thus ensure the high reliability of data processing systems. These technologies and systems allow future development of new services and solutions according bank’s needs and customers’ expectations.

XII. CORPORATE GOVERNANCE

The Corporate Governance Code in Banca Comercială Română Chișinău SA was approved

by Shareholders General Meeting of 30.04.2012 and revized on 30.04.2013 and 29.04.2014. During

2014 involved in the activity of bank parties – shareholders, General Meeting of Shareholders, the

Supervisory Board and the Executive Committee of the Bank complied with the following principles of

corporate governance:

efficient management;

efficient control on economic-financial activity;

financial transparency and information disclosure;

respect of legality and ethical norms;

efficient interaction with employees and equitable remuneration;

social responsability and development of partnership relations with interested parties;

prevention and regulaton of conflicts of interests

General Meeting of Shareholders

Bank’s General Meeting of Shareholders is the supreme governing body which is authorized

to decide any question of Bank’s organization, administration and activity. In the reference year took

place 6 general meetings of shareholders.

The Bank discloses the information regarding Bank’s General Meeting of Shareholders on

the official web site.

The Ordinary General Meeting of Shareholders of 29.04.2014 approved the annual financial

report, Budget of revenues and expenditures, financial plan, confirmed the external audit company

and settled the amount of retribution for its serviced.

At the extraordinary general meetings of shareholders have been approved the transactions

with affiliated persons and increased share capital.

Supervisory Board


The Supervisory Board represents the shaholders’ interests in the period between

shareholders general meetings and, in its limits of responsabilities, exercises the Bank’s general

governance and management, is responsible for approval of primary directions of Bank’s activity,

control policies on risks and business plans, and exercises the supervision of their fullfilment by

Executive Committee.

The Bank discloses the information regarding Supervisory Board members on the official

web site.

In 2014, were convened 24 ordinary and extraordinary meetings of the Bank’s Supervisory

Board. On the agenda have been examined/approved reports on the Bank’s overall activity, Bank’s

Executive Committee, financial results, organizational chart change, risks management, audit and

compliance activity and internal regulations.

Working committees of Supervisory Board:

Compliance and Audit Committee

Compliance and Audit Committee is composed of members of Supervisory Board. The

Committee fullfils the following responsabilities:

analyses jointly with Executive Committee the annual financial situation confimed by

internal and external auditors and assures, that, the found significant aspects and

recommendations offered by external auditors are received and discussed regularly

within Bank;

analyses the activities and organizational structure of compliance and internal audit

function;

evaluates implementation by the Executive Committee of the internal procedures and

risk managing;

evaluates correctness of the transactions and of situations which present, directly or

indirectly, conflict of interest.

Executive Committee

Executive Committee is the Bank’s collegial executive body subordinated to Supervisory

Board which in order to achieve the objectives set in Bank’s strategy, has in its competence all affairs

of Bank’s current activity management, except the questions of which competence is of General

Meeting of Shareholders and/or of Supervisory Board.

Executive Committee cooperates with Supervisory Board/ General Meeting of Shareholders

in Bank’s interests. In this sense, Executive Committee regularly informs the Bank’s superior bodies,

in an exhaustive and exactly manner concering all important aspects for Bank, associated with

planning, business development, risk situations, facts and circumstances, which could have an

important material impact on Bank’s activity, financial position, state of assets and strategy

implementation in terms and modes settled in compliance with related internal regulations and

delivers any other information and documents required by Supervisory Board.

The Bank discloses the information regarding Executive Committee members on the official

web site.

In reporting period, it have been organized 78 ordinary and extraordinary meetings of

Executive Committee. On the agenda have been examined questions concerning the Bank’s overall

activity, documents on financial results, corporate activity, risk management, operations and IT,


results of the controls performed by internal and external audits, inspection of the supervisory bodies,

training of employees.

Working Committees of Executive Committee

Asset-Liability Committee (ALCO)

ALCO is organized and operates as a body for analysis/pre-approval/approval in attracting resources

and making investments, setting interest rate policies in order to maintain of an adequate liquidity.

Loan committee

Loan committee is organized and oprate as assesment/pre-approval/approval bodies of

documents on loans approval, modification of granting conditions, usage, granting and/or

reimbursement of some anterior granted loans, issue of guarantee letters in the authority limit settled

through Bank’s regulations.

Know Your Client Committee (KYCO)

KYCO is organized and operates in order to approve the measures necessary to monitor

and control compliance risks by continuing / reduction / termination of business relationships with

customers that are at risk in terms of AML / CFT / KYC

.

Regulation of conflicts of interests

In Bank exists, is being improved and being perfomred mechanisms of prevention and

regulation of conflicts of interets, their resolution at maximum to Bank’s interests, shareholder and

customers.

At approval of transactions with affiliated persons, member of Supervisory Board – affiliated

person, that held a material interest into transaction, was leaving the meeting into which has been

subjected for deliberation that particular transaction.

Internal Control System

The Bank has built a complex and efficient control system of its activity, by approving

procedures on management of risks, which settle the responsabilities of Bank’s management bodies

and employees. In compliance with Corporate Governance Code in the Bank are created and

function on ongoing grounds systems of information collection and processing, and informing the

management bodies on all important banking risks.

In order to implement an efficient and comprehensive internal control system in all areas of

activity, the Bank defined 3 independent functions:

risk control function

compliance function

internal audit function

Internal control system include the organization of accountancy, information treatment, risks

assesment and the systems of measurement.

The Bank undertakes measures for identification of risk sources, assesment and monitoring

of Bank’s exposures establishing risk limits for different counterparties as well countries, banks,

financial institutions affiliated to banking groups, group of customers, liquidity limits etc.

Existent internal control system assures a strict segregation of responsabilities and an

allocation of competences on the ground of clear, transparent and well documented process

regarding decision taking.


XIII. RISK MANAGEMENT

Ensuring a responsible, prudent and profitable banking activity first and foremost requires

the identification, assessment, monitoring and managing of significant risks.

Significant risks are determined conditional upon the nature, volume and complexity of the

activities unfolded by the bank.

In this respect, the risks which may strongly impact the patrimonial status and/or the

reputation of the bank, that BCR Chisinau S.A. considers significant risks are: credit, market,

liquidity, operational and reputational risks.

For a proper management of significant risks, the bank uses:

a system of procedures for the authorization of operations affected by the respective

risks, consisting in the drawing up of credit approval competences/ pouvoirs for: the

granting of loans and credit-type products, interbank placements, operations with

derivatives, etc.;

a risk exposures reporting system, as well as additional aspects related to these risks, to

the proper management levels (reports on the bank’s exposure to significant risks, the

compliance with the risk limits drawn up by the bank etc.),;

a system of responsibilities, policies, norms and procedures on internal control at bank

level;

a system for the management of legal risk and compliance risk;

criteria for the recruitment and remuneration of personnel, including criteria drawn up in

order to avoid conflicts of interest, which should stipulate high training, experience and

integrity standards;

personnel training programs;

The risk management activity is consolidated under the Finance and Risk functional line. In

these terms, risk management specialists are clearly delimited from an organizational point of view

from the employees who have responsibilities in the business development area.

The bank properly assigns attributions to all its organizational levels, making sure that the

personnel does not have responsibilities which might lead to conflicts of interest (e.g. dual

responsibilities for one individual, such as: the unfolding of both front-office and back-office activities,

approval of fund drawings and performing the respective drawings, the assessment of the credit

documentations and the monitoring of the client after the latter has obtained the loan, etc.).

Credit risk, being the risk of losses or of failing to achieve the estimated profit, due to the

inability of counterparty to fulfill its contractual obligations, is the main risk faced by the bank due to

the fact that more than 50% of the assets are loans.

The main risk management focus will be on an active management of the lending book, on

the improvement of the asset quality (keeping NPL under control) and setting the basis for a healthy

growth of loan portfolio.

In the context of the global financial crisis, BCR Chisinau S.A. establishes limits on

countries, sovereign entities, banks and financial institutions affiliated to bank groups, closely

monitors its exposures, performing risk analysis whenever negative information emerge on one of its

counterparties and putting forth adequate measures with respect to the risk limits assigned.


Market risk is the risk of registering losses or of failing to achieve the estimated profits due

to the market fluctuation of prices, interest rates and exchange rates.

The bank pays special attention to the identification of the market risk sources, evaluation of

its risk exposure and setting a proper limits for market risk mitigation/limitation, having as an objective

assurance of a proper structure of its portfolio in the way that the change of interest rates, FX rates

and market prices won’t have an important negative impact on BCR Chisinau S.A. activity and

financial performance.

Liquidity risk represents the risk of registering losses or of failing to achieve the estimated

profits due to the impossibility of credit institutions to honor their short-term payment obligations at

any point, without there being any costs or losses which may not be covered by the respective

institution.

The administration of liquidity risks envisages the ensuring of the necessary liquid funds

enabling the bank to cover its financial obligations at any point, to maintain a proper liquidity level for

all time buckets and the maximization of the net income obtained from interests. The bank pays

special attention to the identification of the liquidity risk sources, to the assessment of the bank’s

exposure to this risk and to the drawing up of the appropriate risk limits.

Operational risk represents the risk of loss resulting from inadequate or failed internal

processes, people and systems or from external events. Operational risk also includes legal risk, but

excludes strategic and reputational risk.

The management of operational risks seeks to ensure the internal framework which enables

the identification, assessment, monitoring and undertaking of appropriate measures in order to

decrease the operational losses.

Reputational risk represents the ongoing or potential risk of negative profit and capital,

entailed by the unfavorable perception of the bank’s image by clients, counterparties, shareholders,

investors or monitoring bodies.

When assessing legal and reputation risk, the bank considers the ongoing legal and

regulatory framework, including the one applicable to the social domain, as well as any other

elements which might affect the activities. The management of reputational risks seeks to ensure the

internal framework enabling the bank to identify, assess, monitor and undertake the necessary

measures in order to prevent the losses generated by this risk.

XIV. HUMAN RESOURSES ACTIVITY AND ORGANISATIONAL STRUCTURE

In 2014 HR management continued to be the most important issue for Bank management.

The organizational changes have been focused on optimisation of support functions, strengthening of

commercial capabilities and consolidation of internal control systems. The total number of employees

at December 31 2014 amounted to 88 persons and remained within the targets approved by Bank

management.

The Bank offered a number of possibilities to its employees to show their potential and

develop a career. The Bank policy is to promote first of all its own stuff.

Diversification of Bank activity and fulfilment of the new strategic objectives implies

personnel development in line with the Bank development. Therefore, the HR policy for 2014

continued to be oriented towards: improvement of training process and professional development;

improvement of individual performance and employees’ engagement, increase of labour productivity

and organisational efficiency. HR activity will contribute to the implementation of overall Bank

objectives.


XV. ANNEXES

Annex 1

BALANCE SHEET

Indicator 2013 2014 Change

mil. Lei share, % mil. Lei share, % mil. Lei %

ASSETS

Cash on hand 34.31 3.50% 37.41 3.47% 3.10 9.04%

Balances with National Bank 93.78 9.55% 107.32 9.95% 13.54 14.44%

Due from banks 62.72 6.39% 113.73 10.55% 51.01 81.33%

Loans and advances to customers 460.94 46.96% 428.07 39.70% (32.87) -7.13%

Financial investments – available-for-sale 68.36 6.96% 34.22 3.17% (34.14) -49.94%

Financial investments – held-to-maturity 208.55 21.25% 309.77 28.73% 101.22 48.54%

Property and equipment 13.70 1.40% 14.03 1.30% 0.33 2.41%

Intangible assets 5.69 0.58% 6.23 0.58% 0.54 9.49%

Deferred tax assets 1.93 0.20% 1.98 0.18% 0.05 2.59%

Other assets 31.60 3.22% 25.48 2.36% (6.12) -19.37%

Total assets 981.57 100.00% 1,078.23 100.00% 96.66 9.85%

LIABILITIES

Due to banks 34.56 3.52% 22.90 2.12% (11.66) -33.74%

Other borrowings 293.57 29.91% 228.05 21.15% (65.52) -22.32%

Due to customers 351.04 35.76% 429.29 39.81% 78.25 22.29%

Other liabilities 8.43 0.86% 0.36 0.03% (8.07) -95.73%

Deferred tax liabilities 7.01 0.71% 8.60 0.80% 1.59 22.68%

Total liabilities 694.61 70.77% 689.20 63.92% (5.41) -0.78%

EQUITY

Ordinary shares 627.58 63.94% 728.13 67.53% 100.55 16.02%

Statutory reserve 14.20 1.45% 14.20 1.32% - 0.00%

Accumulated deficit (354.82) -36.15% (353.30) -32.77% 1.52 -0.43%

Available-for-sale financial assets reserves - 0.00% - 0.00% - 0.00%

Total shareholders’ equity 286.96 29.23% 389.03 36.08% 102.07 35.57%

Total liabilities and shareholders' equity 981.57 100.00% 1,078.23 100.00% 96.66 9.85%


Annex 2

INCOME STATEMENT

Indicator 2013 2014 Change

mil. Lei share, % mil. Lei share, % mil. Lei %

Interest income from

Due from NBM 0.36 0.37% 0.33 0.35% (0.03) -8.33%

Due from banks 0.07 0.07% 0.75 0.79% 0.68 971.43%

Financial investments- AFS 2.26 2.30% 1.44 1.51% (0.82) 0.00%

Financial investments- HTM 8.71 8.85% 19.22 20.21% 10.51 120.67%

Loans interest 59.11 60.06% 52.19 54.87% (6.92) -11.71%

Other interest income - 0.00% - 0.00% - 0.00%

Total interest income 70.50 71.63% 73.92 77.72% 3.42 4.85%

Interest expense on

Due to banks 5.61 6.16% 2.73 2.76% (2.88) -51.34%

Deposits of individuals 4.60 5.05% 3.04 3.08% (1.56) -33.91%

Deposits of legal entities 3.56 3.91% 3.86 3.91% 0.30 8.43%

Other borrowings 12.84 14.10% 8.15 8.25% (4.69) -36.53%

Total interest expense 26.61 29.22% 17.77 17.98% (8.84) -33.22%

Net interest income 43.89 48.19% 56.15 56.81% 12.26 27.93%

Less: Loan loss provision (10.60) (11.64%) 14.14 14.31% 24.74 -233.40%

Net interest income after LLP 54.49 59.83% 42.01 42.51% (12.48) -22.90%

Non-interest income (expense)

Fees and commissions income 15.28 15.53% 13.63 14.33% (1.65) -10.80%

Fees and commissions expense 4.12 4.52% 5.01 5.07% 0.89 21.60%

Net fees and commission income 11.16 11.34% 8.63 9.07% (2.53) -22.67%

Income (expense) from FOREX 8.93 9.07% 6.23 6.55% (2.70) 0.00%

General and administrative expenses

Wages 24.52 26.92% 22.61 22.88% (1.91) -7.79%

Other general and administrative expenses 19.12 20.99% 19.56 19.79% 0.44 2.30%

Depreciation 8.16 8.96% 7.17 7.25% (0.99) -12.13%

Total General and administrative expenses 51.79 56.86% 49.35 49.93% (2.44) -4.71%

Other operating result

Other operating income 3.71 3.77% 1.33 1.40% (2.38) -64.15%

Other operating expense 13.11 14.39% 13.27 13.43% 0.16 1.22%

Impairment of non-financial assets (2.21) -2.43% (2.25) -2.28% (0.04) 1.81%

Profit (loss) before taxation and extraordinary items 15.58 15.83% (2.18) -2.29% (17.76) -113.99%

Income tax charge (release) 8.26 9.07% 1.54 1.56% (6.72) -81.36%

Profit (loss) before extraordinary items 7.32 8.04% (3.72) -3.76% (11.04) -150.82%

Extraordinary profit (loss) - - -

Income tax - - -

Extraordinary profit (loss) less income tax - - -

Net profit (loss) 7.32 8.04% (3.72) -3.76% (11.04) -150.82%


Annex 3

CASH FLOW STATEMENT

Indicators 2013 2014

million Lei million Lei

Cash flows from operating activities

Interest receipts 68.35 62.96

Interest payments (28.37) (16.21)

Net fee and commission receipts 11.45 9.95

Net financial and other operating income 11.10 7.56

Staff costs paid (23.08) (22.61)

Payments of general and administrative expenses (24.81) (34.20)

Operating profit before working capital changes 14.64 7.45

(Increase) / decrease in operating assets:

Due from NBM - (28.86)

Due from banks 12.15 -

Loans, net 176.26 31.90

Other assets 0.17 2.20

Increase / (decrease) in operating liabilities

Due to banks (102.52) (11.65)

Due to customers and public authorities (35.27) 78.06

Other liabilities (1.79) 1.04

Net cash flow from operating activities before income tax 49.00 72.68

Income tax payments - -

Net cash from operating activities 63.64 80.13

Cash flows from investing activities

Purchase of property and equipment and intangible assets (4.26) (1.66)

Financial investments – available-for-sale - (6.33)

Income from sale of property and equipment and intangible assets (1.09) (275.87)

Proceeds from Financial investments HTM - 174.70

Purchanse of Financial investments HTM (73.29) -

Net cash used in investing activities (78.64) (109.16)

Cash flows from financing activities

Additional paid-in capital - 100.56

Repayments /Proceeds from borrowings (5.43) (66.90)

Net cash from financing activities (5.43) 33.66

Net increase/(decrease) in cash and cash equivalents (20.43) 4.63

Balance as at 1 January 242.06 221.63

Balance as at 31 December 221.64 226.26


Annex 4

STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

2014

Share capital

Reserve capital

Statutory Reserve

Accumulated deficit

Available-for-sale financial

assets Total

million Lei million Lei million Lei million Lei million Lei million Lei

Balance as at 1 January 627.58 - 14.20 (362.14) - 279.64

Issued ordinary shares - - - - - -

Transfers between reserves - - - - - -

Net profit / (loss) for the year - - - 7.32 - 7.32

Comprehensive income for the year - 0.01 - - - -

Balance as at 31 December 627.58 0.01 14.20 (354.82) - 286.96

2013

Share capital

Statutory Reserve

Accumulated deficit

Available-for-sale financial

assets Total

million Lei million Lei million Lei million Lei million Lei

Balance as at 1 January 627.58 14.20 (362.14) - 279.64

Issued ordinary shares - - - - -

Transfers between reserves - - - - -

Net profit / (loss) for the year - - 7.32 - 7.32

Comprehensive income for the year - - - - -

Balance as at 31 December 627.58 14.20 (354.82) - 286.96


Annex 5

FINANCIAL INDICATORS Indicator 31.12.2013 31.12.2014 Change (%)

Total Assets 981.57 1,078.23 9.85%

Other assets 31.60 25.48 -19.37%

Loans 460.94 428.07 -7.13%

Liquid assets 363.98 439.36 20.71%

Bank Deposits 328.13 250.95 -23.52%

Client Deposits 351.04 429.29 22.29%

Capital 286.96 389.03 35.57%

Market share

31.12.2013 31.12.2014 Change

Total Assets 1.29% 1.10% -0.18%

Other assets 1.96% 0.07% -1.89%

Loans 1.12% 1.09% -0.03%

Liquid assets 1.04% 0.64% -0.40%

Total Deposits 0.59% 0.38% -0.22%

Capital 2.51% 3.13% 0.62%

Rating

31.12.2013 31.12.2014 Change

Total Assets 12 12 -

Loans 12 12 -

Liquid assets 13 13 -

Total Deposits 12 12 -

Client Deposits 13 13 -

Capital 12 12 -

Profitability indicators

31.12.2013 31.12.2014 Change

Net profit 7.32 (3.72) (11.04)

Net Interest Income 43.89 56.15 12.26

Net Non-Interest Income (38.89) (44.18) (5.29)

Provision allocation (10.60) 14.14 24.74

ROA 0.75% -0.35% -1.09%

ROE 2.55% -0.96% -3.51%

Cost / Income ratio 80.95% 69.50% -11.45%

Indicators of the loan portfolio quality

31.12.2013 31.12.2014 Change

Overdue Loans /Loans ratio 25.79% 26.84% 1.05%

Nonperforming Loans (non-interest) / Loans ratio 24.72% 31.75% 7.03%

Provisions for loan losses/Loans ratio 11.16% 15.05% 3.89%

Large Loans/Capital ratio 29.06% 28.09% -0.97%

Solvency ratio 93.42% 137.17% 43.75%

Liquidity ratio 44.76% 54.60% 9.84%

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