UBBi H UDRUENJE BANAKA BOSNE I HERCEGOVINE UDRUGA

UBBi. H UDRUŽENJE BANAKA BOSNE I HERCEGOVINE UDRUGA BANAKA BOSNE I HERCEGOVINE УДРУЖЕЊЕ БАНАКА БОСНE И ХЕРЦЕГОВИНE BANKS ASSOCIATION OF BOSNIA AND HERZEGOVINA Branilaca Sarajeva 20/III, 71000 Sarajevo, Bosna i Hercegovina, Tel: (387 33) 714 630, Fax: (387 33) 714 631 www. ubbih. ba BOSNIA AND HERZEGOVINA AND BANKING SECTOR OF B&H in 2005 Mr. Ranko Labović, Managing Board Member Nicosia, October 6 th, 2006 6 th Interbalkan Forum of Banking Associations 1

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations CONTENT OF THE PRESENTATION n I. B&H in brief II. Presenting UBBi. H III. Priorities of the UBBi. H in 2006 IV. Performance Results of the Banking Sector in 2005 2

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations I. B&H in brief BOSNIA AND HERZEGOVINA Flag 3

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations I. B&H in brief Bosnia and Herzegovina-Geographic Position in Europe -Bosnia is located in the western Balkans, bordering Croatia, Serbia Montenegro The country has 20 kilometres of coastline 4

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations I. B&H in brief Map of Bosnia and Herzegovina: Population: 4, 498, 976 Capital: Sarajevo Area: 51, 197 km² 5

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations I. B&H in brief The national currency is the Bosnia and Herzegovina convertible mark (BAM-KM), which is fixed to the Euro (€ 1 = KM 1. 95583) 6

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations I. B&H in brief Economy -Bosnia currently faces the dual problem of rebuilding a war-torn country and introducing market reforms to the formerly centrally planned economy 7

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations I. B&H in brief The largest foreign investors (1996 - 2006) in the country have been*: Croatia (308. 444. 000 €) Austria (279. 533. 000 €) Lithuania (252. 395. 000 €) Slovenia (236. 532. 000 €) Netherlands (204. 889. 000 €) Germany (130. 984. 000 €) *Source: www. fipa. gov. ba 8

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations I. B&H in brief Foreign investments by sector (1996 -2006)*: → 55. 5% Manufacturing → 16. 5% Banking → 8. 6% Services → 6. 2% Trade → 0. 9% Transport → 0, 7% Tourism *Source: www. fipa. gov. ba 9

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations II. Presenting UBBi. H (1/5) CONSTITUENT ASSEMBLY – June 24, 2004 The Association members are all banks of Bi. H 10

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations II. Presenting UBBi. H (2/5) BODIES OF THE ASSOCIATION: • ASSEMBLY MANAGING BOARD • Mr. Petar Jurčić, Chairman (Hypo-Alpe-Adria Bank Mostar) • Mr. Mirsad Letić, Member (UPI Bank Sarajevo) • Mr. Dino Osmanbegović, Member (Raiffeisen Bank BH Sarajevo) • Mr. Berislav Kutle, Member (Uni. Credit Zagrebačka Bank Mostar) • Mr. Ranko Labović, Member (ZEPTERBANK Banja Luka) EXECUTIVE SECRETARY, Mr. Mijo Mišić 11

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations II. Presenting UBBi. H (3/5) OUR MISSION: -Relationships among the members; -Relationships with institutions; -Relationships with media; -Education; -Establishment of cooperation with similar institutions in the environment and abroad 12

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations II. Presenting UBBi. H (4/5) n COMMISSIONS OF THE BANKS ASSOCIATION OF BIH 1. Commission for Electronic Banking 2. Commission for Old FC Savings 3. Commission for Card based Operations 4. Legislation Commission 5. Audit and Supervision Commission 6. Commission for Safety Issues 7. Commission for Prevention of Money Laundering 8. Money and Capital Market Commission 13

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations II. Presenting UBBi. H (5/5) PUBLIC RELATIONS n n n Cooperation with Media Website BH Banker Annual Media Conference Targeted Media Conferences (as needed) Media Contact Person (PR), Ms. Julijana Jurković, Tel: 036 444 14

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations III. Priorities of the UBBi. H in 2006 (1/1) PRIORITIES (GOALS) OF THE BANKS ASSOCIATION OF BIH IN 2006: 1. Adoption of Law on Banks on the Bi. H Level, 2. Establishment of Unified Supervision on the Bi. H Level, 3. Foundation of Auction Center, 4. Adoption of Law on Electronic Operations, 5. Improvement of an Enforcement Collection Process, 6. Credit Bureau, 7. Adoption of Law which would regulate minimum standards in the area of bank protection. 15

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations IV. Performance Results of the Banking Sector in 2005 n 16

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations IV. Performance Results of the Banking Sector in 2005 1/9 NUMBER OF BANKS n n 33 banks Federation of Bi. H, 24 banks Republic of Srpska, 9 banks Out of total number of banks, there are 5 banks under Provisional Administration 17

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations IV. Performance Results of the Banking Sector in 2005 2/9 GENERAL DATA FROM THE BALANCE SHEET OF BANKS IN BIH (in 000 KM) Description 2004 2005 Index n Total Capital 1. 101. 920 1. 320. 132 120 Total Assets 9. 264. 642 11. 761. 550 127 18

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations IV. Performance Results of the Banking Sector in 2005 3/9 CAPITAL STRUCTURE OF THE BANKS IN BIH 19

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations IV. Performance Results of the Banking Sector in 2005 4/9 n DEPOSITS OF THE BANKS IN BIH (in 000 KM) Description 2004 2005 Index Citizens 2. 547. 220 3. 257. 969 128 Legal Entities Total 4. 364. 886 5. 529. 971 127 6. 912. 106 8. 787. 940 127 20

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations IV. Performance Results of the Banking Sector in 2005 5/9 n LOANS OF THE BANKS IN BIH (in 000 KM) Description 2004 2005 Indeks 2. 578. 785 3. 389. 375 131 Legal Entities 2. 876. 494 3. 666. 295 127 Total 7. 055. 670 129 Citizens 5. 455. 279 21

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations IV. Performance Results of the Banking Sector in 2005 6/9 n Interest Rates (%) Date December ST Loans LT Loans Demand Deposits LT Deposits 2002 12, 07 10, 59 1, 44 4, 38 2003 10, 54 9, 18 0, 69 3, 40 2004 9, 92 8, 23 0, 77 4, 02 2005 9, 03 7, 70 0, 63 3, 63 Data Source: Central Bank of Bi. H 22

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations IV. Performance Results of the Banking Sector in 2005 7/9 n GENERAL DATA FROM THE INCOME STATEMENT (in 000 KM) Description Total Income 2004 659. 598 2005 778. 649 Index 118 Total Expenses 602. 474 679. 979 113 Profit before Tax 98. 670 177 57. 124 23

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations IV. Performance Results of the Banking Sector in 2005 8/9 n EMPLOYEES OF THE BIH BANKING SECTOR Description Number of Employees n 2004 7. 840 2005 8. 392 Index 107 University Qualifications 35%, Secondary School Qualifications 52% and Others 13% 24

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations IV. Performance Results of the Banking Sector in 2005 9/9 COMPARED TO OTHER ECONOMY SECTORS IN BIH -more developed -regulated better -organized better -positive influence to integration and development of the B&H economy 25

Nicosia-Cyprus, 6 th Interbalkan Forum of Banking Associations n THANK YOU FOR YOUR ATTENTION! 26