BANKING SECTOR IN BOSNIA AND HERZEGOVINAMr. Mijo Mišić, Executive Secretary

10th Interbalkan Forum Banks Association

Sarajevo, 16th October 2009

UBBiH

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UBBiH

210th Interbalkan Forum of Banks Association, Sarajevo 16th October 2009

1. SPARKASSE BANK2. BALKAN INVESTMENT BANKA 3. BOBAR BANKA 4. BOR BANKA5. BOSNA BANK INTERNATIONAL6. FIMA BANKA7. HYPO-ALPE-ADRIA-BANK Mostar8. HYPO-ALPE-ADRIA-BANK B.Luka9. IEFK BANKA BANJA LUKA10.INTESA SANPAOLO BANKA11. INVESTICIONO KOMERCIJALNA BANKA Zenica12. KOMERCIJALNA BANKA B.Luka13. KOMERCIJALNO-INVESTICIONA

BANKA V.Kladuša14. NLB RAZVOJNA BANKA BANJA

LUKA15. NLB TUZLANSKA BANKA

16. NOVA BANKA17. PROCREDITBANK 18. PAVLOVIĆ INTERNATIONAL

BANKA 19. POSTBANK BH20. PRIVREDNA BANKA SARAJEVO21. RAIFFEISEN BANK BH22. RAZVOJNA BANKA FBiH23. TURKISH ZIRAAT BANK BOSNIA24. UNION BANKA25. UNICREDIT BANK MOSTAR 26. UNICREDIT BANK BANJA LUKA 27. VAKUFSKA BANKA28.VOLKSBANK BH SARAJEVO29. VOLKSBANK BANJA LUKA

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UBBiH I About Banks Association of B&H in brief OUR MEMBERS

10th Interbalkan Forum of Banks Association, Sarajevo 16th October 2009

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UBBiH

I About Banks Association of B&H in brief

Association Bodies:

Assembly

Board of DirectorsDino Osmanbegović, President (Raiffeisen bank BH

Sarajevo)Milorad Andžić, member (Nova banka Banja Luka)Radovan Bajić, member (NLB Razvojna banka Banja

Luka)Berislav Kutle, member (UniCredit banka Mostar)Petar Jurčić, member (Hypo-Alpe-Adria Bank Mostar)

Executive Secretary, Mijo Mišić10th Interbalkan Forum of Banks Association, Sarajevo 16th October 2009

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UBBiH

I About Banks Association of B&H in brief

Our Mission:-Relationship between our members;-Relationship between state institutions;-Relationship between media;-Education;-Establishing cooperation with similar associations abroad

10th Interbalkan Forum of Banks Association, Sarajevo 16th October 2009

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UBBiH

I About Banks Association of B&H in brief

Expert Level Comities 1. Committee for Payment System2. Committee for Legal Affairs3. Committee for Credit Cards4. Committee for Accounting and Taxes5. Committee for Internal Auditing6. Committee for Money and Capital Market7. Committee for e-Banking8. Committee for Security Aspects9. Committee for Anti-Money Laundering Issues 10. Committee for Educations

10th Interbalkan Forum of Banks Association, Sarajevo 16th October 2009

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UBBiHUBBiHII Structure of Financial Sector in B&H

Financial Sector in B&H consist of:

Banking Sector;

Mikrocredit Sector;

Leasing companies;

Insurance companies;

Iinvestments Funds.

10th Interbalkan Forum of Banks Association, Sarajevo 16th October 2009

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UBBiH UBBiH

II Structure of Financial Sector in B&H Asset Value Source: Central Bank of B&H

 

2005 2006 2007 2008

in millions

KM

participation %

in millions

KM

participation, %

in millions

KM

participation %

in millions

KM

participation %

Banks 11,440 76.9 14,622 79.5 19,570 79.8 20,815 80.8

Investments funds 1,793 12.0 1,553 8.4 1,762 7.2 1,225 4.8

Leasing companies 660 4.4 1,025 5.6 1,378 5.6 1,600 6.2

Insurance and reinsurance 676 4.5 708 3.8 853 3.5 890 3.5

Microcredit organizations 314 2.1 486 2.6 946 3.9 1,213 4.7

Toatl 14,883   18,394   24,510   25,743  100

10th Interbalkan Forum of Banks Association, Sarajevo 16th October 2009

Basic data of commercial banksin B&H (in 000 KM)ISource: banking agencies in B&H

R.B Description 30.6.2008 31.12.2008 30.6.2009 Index Index

1 2 3 3/1 3/2

1 Cash 6.450.204 6.179.858 5.536.241 86 90

2 Loans 13.269.468 13.901.833 13.799.534 104 99

3 Total Assets 20.615.684 20.820.631 20.374.748 99 98

4 Deposits 15.422.388 15.164.344 14.906.665 97 98

5 Total Capital 2.013.029 2.162.881 2.189.985 109 101

6 Total Income 831.261 1.750.755 638.228 77 36

7 Total Expences 778.070 1.640.347 606.556 78 37

8 Netto Profit 48.666 82.955 28.395 58 34

UBBiHIII Banking Sector in B&H

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UBBiHUBBiHIII Banking Sector in B&H

FSI (FSI (Financial Soundness Indicators)

FSI second quarter 2008. i 2009. Source: Central Bank of B&H

 Q2 2008 Q2 2009

 

Banks owned by foreign investors

Banking system

Banks owned by foreign investors

Banking system

Netto capital vs risk waighted assets (CAR) 14.7 16.1 15.6 16.3

NPL vs total assets 1.9 2.0 2.8 2.8

ROAA 0.2 0.3 0.1 0.1

ROAE 2.8 2.5 1.4 1.3

Non interest expences vs total income 90.5 90.4 94.3 94.4

Likvid assets vs total assets 31.8 32.2 28.2 28.5

Netto open position -3.8 -1.3 1.0 2.0

10th Interbalkan Forum of Banks Association, Sarajevo 16th October 2009

UBBiHIIII Banking Sector in B&H

Average interest rate in B&H (loans: blue-short term, red-long term) ISource: www.cbbh.bawww.euribor.org

2,003,004,005,006,007,008,009,00

10,0011,0012,00

Kratkoročni krediti (%)

Dugoročni krediti (%)

EURIBOR

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UBBiH UBBiH III Banking Sector in B&HInterest rates and new placementsInterest rates and new placements

Source: Central Bank of B&H

10th Interbalkan Forum of Banks Association, Sarajevo 16th October 2009

There was no cash intervention in B&H banking sector by the State institutions

UBBiH

III Banking Sector in B&H

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Three key questions:

-Where to find new capital?

-How to keep trend in a time ahead?

-Can we turn challenge into opportunity?

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Thank you for your attention...

UBBiH

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