The financial statement
General information
According to the data available on 01.01.2005 the Bank "Finance and Credit" takes one of the first ranks in the II banking group classified by NBU according to the average assets level.
In 2004 the Bank "Finance and Credit":
- Increased its proper assets by 24% from 1 849 mln. UAH to 2 286 mln. UAH
- Increased its crediting portfolio by 46% from 1 142 to 1 167 mln. UAH
- Increased its regulatory capital by 1,56 times - from 178,990 to 280,149 mln. UAH (38,815 mln. EUR)
The balancing currency
According to the data available on 01.01.2005 the balancing currency of the bank constituted 3 846 mln. UAH, including the branches network - 1 522 mln. UAH.
In 2003 and 2002 the balancing currency of the Bank constituted 2 904 and 1 837 mln. UAH.
The growth of the index of the balancing currency of the Bank in 2004 constituted 942 mln. UAH (growth about 32%), including the branches of the Bank 528 mln. UAH (growth by 53%).
The capital of the Bank
In 2004 the National Bank of Ukraine authorized the Bank "Finance and Credit" to attract funds under the conditions of a subordinate debt in the capital of the Bank. The regulatory capital was increased by 56% and according to the data available on 01.01.2005 constituted 280,15 mln.UAH.
The assets of the Bank
The increase of the net wealth of Bank "Finance and Credit" in 2004 constituted 24% (according to the data available on 01.01.2005 the net wealth constituted 2 286 mln. UAH). This growth in 2004 is a result of the increase of all positions of the assets part of the balance for example the increase of the crediting and investment portfolio by 32% (according to the data available on 01.01.2005 this index constituted 1 680 mln. UAH).
The crediting stayed one of the most important directions of the activity of the Bank. The volume of the credits furnished by the Bank to its clients - legal persons increased per a year by 1,44 times and according to the data available on 01.01.2004 constituted 1 146 mln. UAH.
The quota of the credits furnished in 2004 to the corporative clients made 84% of the general crediting portfolio of the Bank. The most important directions of the financing activities were the investments to the chemical industry - 18,55%, foods industry - 5,08%, commerce - 25,16%, transport and metallurgy.
The portfolio of the consumer crediting of the Bank increased during the past year by 65% and according to the data available on 01.01.2005 constituted 260 mln. UAH including the hypothecary crediting - 67 mln. UAH (2,68 times more than in 2003).
According to the data available on 01.01.2005 the Bank created the reserves for the risks covering for all assets operations with the volume of 61 mln. UAH, or 2,7% of the proper assets of the Bank.
The resources funds of the Bank
The resources funds of the Bank in 2004 by 70,7% constituted of the funds of clients - legal and natural persons. The clients funds during 2004 increased by 34% and in the end of the year constituted 1 615 mln.UAH. The funds of the legal persons constituted 48%, the funds of the natural persons constituted 52%.
The positive factor is the positive dynamic of the growth of the rest of the funds on the terms accounts of the subjects of business activity - by 81,4% in comparison with the increase of the rests on the demand accounts - 5,7% that permits to realize an efficient planning and placement of the attracted funds and daily control of the liquidity condition and solvency of the Bank. On the whole the liabilities of the Bank increased by 25% and according to the data available on the 31 December 2004 constituted 2 090 mln. UAH.
The efficient instrument for the support of the liquidity of the Bank in 2004 stayed as before the formation of the funds in the interbank market, their part in the consolidated liabilities of the Bank constituted 10% or 216 mln. UAH.
The financial product of the Bank "Finance and Credit" in 2004 constituted 6,63 mln. UAH.
The profits sum received in 2004 constituted 332,5 mln. UAH, that is greater by 52,0% in comparison with 2003. At that time the profits sum of the Head Bank - 156 mln. UAH, the branches net - 87,9 mln. UAH.
The most important part of the profits is represented by the interest profits - 73,4% or 243,9 mln. UAH, there are:
- the funds of the Bank - 22,0 mln. UAH (the increase by 80,6% in comparison with 2003)
- the credits of clients - 219,1 mln. UAH (the increase by 155,0% in comparison with 2003)
In the consolidated profits sum the commissioning profits are also very important - 17,3% or 57,6 mln. UAH.
On the whole in 2004 the Bank earned 82,0 mln.UAH of the commissioning and commercial profits, including the Head Bank - 30,6 mln. UAH and the branches net - 51,4 mln. UAH.
In 2004 the net commercial profit constituted 24,4 mln. UAH or 282,1% of the net commercial profit received by the Bank in 2003. The increase of the profit is a result of the growth of profits volumes from the trade of international currency which constituted 24,0 mln. UAH in 2004 that is greater by 271,9% in comparison with 2003.
In the total expenditures sum the most important role belong to the interest expenditures - 53,4% or 174,0 mln. UAH, among them the biggest part - 81,1% - is represented by the expenditures of the funds received from clients.
The interest expenditures of the funds received from clients increased by 67% in comparison with 2003. This increase was the main factor that influenced the growth of the Bank's expenditures on the whole.
The volume of the interest expenditures of the funds received from the banks increased in comparison with 2003 by 665,0% and constitutes 16,5 mln. UAH.
In 2004 the commissioning expenditures that constitute 3,6% of the consolidated expenditures (11,6 mln. UAH) increased by 2,8 times in comparison with the preceding year.
The operational leasing expenditures are also increased. In 2004 these expenditures constituted 11,41 mln. UAH and exceeded the activities of the past year by 72,9%. Such an abrupt growth was conditioned by the impetuous development of the regional net of the Bank. During 2004 in the different regions of Ukraine 4 new branches and 52 departments of the Bank were opened. One of the most important factors that influence the expenditures formation - consolidated administrative expenditures that constitute 26,7% (87,1 mln. UAH) of the consolidated expenditures sum in 2004. In comparison with the past year the expenditures on this article increased by 47,3%.
The personnel expenditures in 2004 constituted 43,0 mln. UAH, and their role in the total administrative expenditures of the Bank constituted 49,4%. In comparison with the past year the indicated expenditures increased by 34,0% that is conditioned by the increase of the average quantity of the personnel during the year. Thus in the end of 2004 the quantity of the working personnel of the "Finance and Credit" Bank's system constituted 2 028 persons or greater by 50,3% in comparison with 2003.
In 2004 the expenditures allocation to reserve constituted 31,8 mln. UAH that is higher by 18,8% in comparison with 2003.
The results of the work of the Bank in 2004 the net profit of the Bank constituted
6,630 mln. UAH that is higher by 20,3% in comparison with 2003. The expenditures of the profits tax constituted 800 thousands UAH.
| The standards performance |
The observance of the standard requirements
During 2004 the Bank "Finance and Credit" accomplished the full volume of the requirements of the National bank of Ukraine as for the obligatory economic standards.
The fulfillment of the obligatory economic standards of the NBU
by the Bank "Finance and Credit"
(Data available on the 31 december 2004)
| The title of a standard | The value of an economic standard of the Bank "Finance and Credit" | The value of a standard of the NBU |
| The standard of the regulatory capital adequacy |
14,64% |
no less than 10 % |
| The standard of the fixed capital adequacy |
7,57% |
no less than 4 % |
| The standard of the momentary liquidity |
67,43 % |
no less than 20 % |
| The standard of the current liquidity |
94,06 % |
no less than 40 % |
| The standard of the short-term liquidity |
44,17 % |
no less than 20 % |
| The standard of the maximal volume of the crediting risk per one contractor |
23,29 % |
no more than 25 % |
| The standard of the "high" crediting risks |
380,46 % |
no more than 800 % |
| The standard of the maximal volume of credits, guarantees and bail-pieces, presented for a insider |
1,92 % |
no more than 5 % |
| The standard of the maximal joint amount of the credits, guarantees and bail-pieces, presented for insiders |
3,83 % |
no more than 40 % |
| The standard of the individual investment in for every organization |
2,04 % |
no more than 15 % |
| The standard of the total investment sum |
4,38% |
no more than 60 % |
The fulfillment of the obligatory economic standards is evidence of the terms and amounts equilibration of the assets and liabilities of the Bank "Finance and Credit" , that characterizes the capacity of the Bank to fulfill its obligation in full volume and in time
The equity capital report according to the data available
on the 31 December 2004 (at the end of the day)
| Denomination | Entered and liquidated statutory capital | Capitalized dividends | Own bought out stocks | Emissive differences | Reserves and other funds of Bank | Reserves of revaluation | Surplus earnings or uncovered loss | Capital, reserve and other funds. Total
| Preceding year |
| The rest on the 1 January of the fiscal year |
136 245 |
|
|
|
3 375
|
1 343
|
36 339
|
177 302
|
71 895 |
The adjusted rest for the beginning of the year
|
136 245
|
|
|
|
3 375 |
1 343 |
36 339 |
177 302 |
71 895 |
The Adjustment
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The change of the accounting policy
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The reevaluation of the non-negotiated assets
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The sum of the results of the non-negotiated assets reevaluation
|
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|
|
|
|
7 642
|
|
7 642
|
(10)
|
The deferred taxes according to the results of the fixed assets reevaluation
|
|
|
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|
|
|
25
|
25
|
6
|
The reevaluation of the investments in the associated and subsidiary companies
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The sum of the reevaluation results in the associated and subsidiary companies in case of their realization
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The net profit of the fiscal year
|
|
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|
|
|
|
6 630
|
6 630
|
5 511
|
!!The allocation of profits to the reserve funds
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The allocation of profits to the other reserves of the Bank
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551
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(551)
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| The allocation of profits to the reserve funds |
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| The liquidated dividends of the fiscal year |
|
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|
|
(100)
|
(100)
|
(100)
|
| The capitalized dividends of the fiscal year |
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The payment to the entered before statutory capital
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The holdings for the stocks of the new emission
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100 000
|
Own bought out stocks
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| The sale of the own bought out before stocks |
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The abrogated bought out before stocks
|
|
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|
The rest according to the data available on the 31 December of the fiscal year
|
136 245
|
|
|
|
3 926
|
8 985
|
42 343
|
191 499
|
177 302
|
The sum of the accrued and uncollected profits according to the data available on 31.12.2004 constitute 18 299 thousands UAH.
The sum of the accrued and not liquidated expenditures according to the data available on 31.12.2004 constitute 28 597 thousands UAH.
The balance sheet of the Bank "Finance and Credit"
according to the data available on the 31 December 2004 (thousands UAH)
| Denomination | 2004 | 2003 |
|
ASSETS
|
| The funds and the rest in the NBU |
142652 |
73754 |
| The refinanced by the NBU fiscal and other securities and securities emitted by the NBU |
115 |
0 |
| The funds in the other banks |
351612 |
375646 |
| The securities in the commercial portfolio of the Bank |
0 |
0 |
| The securities for sale in the portfolio of the Bank |
13099 |
120934 |
| The credits and the indebtedness of the clients |
1664264 |
1141950 |
| The securities in the portfolio of the Bank for the acquittal |
203 |
14139 |
| The investments to the associated and subsidiary companies |
0 |
0 |
| The fixed assets and fictitious assets |
65021 |
32053 |
| The accrued profits for the acquisition |
18299 |
41933 |
| Other assets |
28838 |
48213 |
| TOTAL ASSETS |
2284103 |
1848622 |
|
LIABILITIES
|
| The funds of the banks |
346235 |
333935 |
| Including the credits furnished by the national bank of Ukraine |
0 |
0 |
| The clients' funds |
1615887 |
1208334 |
| The saving (depositary) certificates emitted by the Bank |
0 |
82845 |
| The debt securities emitted by the Bank |
10964 |
24027 |
| The charged expenditures for the payment |
28597 |
15116 |
| Other liabilities |
90922 |
7063 |
| TOTAL LIABILITIES |
2092605 |
1671320 |
|
EQUITY CAPITAL
|
| The authorized fund |
136245 |
136245 |
| The capitalized dividends |
0 |
0 |
| The emission differences |
0 |
0 |
| The reserves and other funds of the Bank |
3926 |
3375 |
| The reevaluation reserves, including |
8984 |
1342 |
| The reserves of the non-negotiable assets reevaluation |
8984 |
1342 |
| The surplus earnings |
35713 |
30829 |
| The profits/loss for the fiscal year |
6630 |
5511 |
| TOTAL EQUITY CAPITAL |
191498 |
177302 |
|
TOTAL LIABILITIES
|
2284103 |
1848622 |
The financial results report of the Bank "Finance and Credit"
according to the data available on the 31 December 2004 (thousands UAH)
| Denomination | 2004 ãîä | 2003 ãîä |
| The net interest profit |
69868 |
55632 |
| The interest profit |
243908 |
162614 |
| The interest expenditures |
174040 |
106982 |
| The net commissioning profit |
45983 |
34592 |
| The commissioning profit |
57574 |
38840 |
| The commissioning expenditures |
11591 |
4248 |
| The dividends profit |
3 |
22 |
| The net commercial profit |
24415 |
8655 |
| The profits\loss resulting from the investment securities |
0 |
1826 |
| The profits resulting from the capital contribution |
0 |
0 |
| Other profits |
6524 |
1889 |
| The operative profits |
146793 |
102616 |
| The general administrative profits |
43351 |
27996 |
| The personnel expenditures |
43009 |
32104 |
| The expenditures resulting from the capital contribution |
0 |
0 |
| Other expenditures |
21308 |
13871 |
| The profits resulting from the operations |
39125 |
28645 |
| The net loss resulting from the reserves formation |
31695 |
21789 |
| The profits before the taxation |
7430 |
6856 |
| The profits tax |
800 |
1345 |
| The profits after the taxation |
6630 |
5511 |
| The unintended profits\loss |
0 |
0 |
| The net profits\loss |
6630 |
5511 |
| The net profits per a simple stock |
0 |
0 |
| The adjusted net profits per a simple stock |
0 |
0 |
The funds movement report of the Bank "Finance and Credit" according to the data available on the 31 December 2004 (thousands UAH)
| Denomination | 2004 | 2003 |
| The operating activities |
| The earned interest profits |
264528 |
156018 |
| The liquidated interest loss |
156687 |
94093 |
| The earned commissioning profits |
57574 |
38840 |
| The liquidated commissioning loss |
11591 |
4248 |
| The earned dividends from the long term deposits to the associated companies |
3 |
22 |
| Other earned profits |
705 |
1855 |
| Other liquidated loss |
54653 |
34119 |
| The realized results of the commercial operations |
24254 |
9362 |
| The restitution of the written off assets |
93 |
4959 |
| The payments to the Bank's personnel |
42991 |
32104 |
| The liquidated profits tax |
933 |
967 |
| The net cash income from the current operations of the Bank |
80302 |
45525 |
| The decrease (growth) of the funds placed in the other bank, credits and pre-payments to the other banks |
28619 |
133996 |
| The decrease (growth) of the credits furnished to the clients |
542988 |
595274 |
| The decrease (growth) of the other assets |
15725 |
18882 |
| The growth (decrease) of the funds received from the National Bank of Ukraine |
0 |
0 |
| The growth (decrease) of the other banks |
12300 |
248389 |
| The growth (decrease) of the current and deposit accounts |
405062 |
448023 |
| The growth (decrease) of the funds formed as saving (deposit) certificates |
86733 |
0 |
| The growth (decrease) of the other liabilities |
4176 |
9612 |
| The realization (purchase) of the securities in the Bank's portfolio for sale |
115069 |
47276 |
| The net growth (decrease) of the assets and liabilities resulting from the operating activities |
57122 |
89404 |
| The net afflux (drain) of money resulting from the operating activities |
23180 |
43879 |
|
THE INVESTMENT ACTIVITY
|
| The realization (purchase) of the investment securities |
13937 |
15551 |
| The decrease (growth) of the investments to the associated companies |
0 |
0 |
| The decrease (growth) of the investments to the subsidiary companies |
0 |
0 |
| The decrease (growth) of the fixed assets and fictitious assets |
34615 |
10593 |
| The net drain of money resulting from the investment activities |
20678 |
4958 |
| THE FINANCING ACTIVITIES |
| The growth (decrease) of the self-debt securities |
13063 |
86421 |
| The growth (decrease) of the subordinated debentures |
85000 |
0 |
| The growth (decrease) of the liquidated of the share capital |
0 |
100000 |
| The dividends that were liquidated during the reporting period |
100 |
100 |
| The net afflux of money resulting from the financing activities |
71836 |
186321 |
| The net growth (decrease) of the funds and their equivalents |
74338 |
147400 |
| The funds and their equivalents at the beginning of the year |
265036 |
118422 |
| The funds and their equivalents at the end of the year |
339535 |
265036 |
| The change of the currency exchange influence |
161 |
786 |
The main strategic goal of the Bank "Finance and Credit" is the providing of its development by means of the increase of the system stability, reduction of the sensibility regarding to the external and internal destabilizing factors, the improving of the quality and effectiveness of its activities and stability in case of crisis situations.
Among the essential directions of the activity of the Bank that favor the consolidation of the Bank and the growth of the depositors and investors confidence the most important rank is taken by actions directed to the improving of the corporative direction and the perfection of the risk management system. The risk management system is intended to provide the timely risks identification and evaluation, the taking measures for the risks optimization, the effective interaction of the sections at all organizational levels and the settlement of a conflict of interests that emergent during the risk management process.
The risk management activity of the Bank is realized by means of the organizational structure. The risk-management process in the Bank embraces all structural levels: from the administration level (Supervisory Board and Board of Directors) to the level of risks assumption and rising.
The Board of Directors interacts with the Supervisory Board in the domain of the risk management reasoning from the common principles of the corporative management and the process hierarchy. The interaction consists of two main parts: accounting and recommendations provision. As for the recommendations provision the Credit committee and the Board of Directors develop and submit for consideration of the Supervisory Board the examined business plans and the strategy of the Bank's activity. The Board of Directors and the crediting committee are the superior executive body of the Bank and are responsible for the organization and realization of risk-management process in the Bank. The body of the on-line inspections is represented by the Service of internal audit. This Service inspects the respect of the internal control system and decides whether the system is effective and sufficient or not. The services of internal audit appreciate the adequacy of the risk management systems regarding to the needs of the Bank.
With the object to provide the additional measures of the risk management in the Bank there are several acting special committees, namely the Credit Committee and the Assets and Liabilities management Committee. These Committees are the collegial bodies of the Bank.
The Credit committee evaluates monthly the quality of the Bank's assets and liabilities and prepares the propositions as for the reserves formation for the covering of the possible loss resulting from the assets operations. The Credit committee determines and fixes the procedures, methods, standards and instructions as for the practice of the credit risk management, evaluation of the furnished credits guarantee, determines the policy of the operations with the problem assets.
The Assets and Liabilities management Committee determines monthly the needs of the Bank as for liquid funds; manages the liquidity risk of the long term medium term and long-term perspective; determines the policy of the market risks management, takes efficient measures as for management of the Bank's assets and liabilities. The Committee prepares propositions for the respective administration bodies of the Bank as for the change of the banking products, tactics and strategy of the Bank in the market of the banking services.
Under the conditions of the unstable external milieu that affects the condition of the whole monetary system, the governing body of the Bank laces high emphasis on the market risks. The market risks management is realized with the help of the limits system and the choice of the hedging methods, evaluation of the possible consequences. With the object to manage, evaluate and control the market risks the VAR-technology, Stop-out and Stop-Loss mechanisms are in use. All the systems of the internal control are stress-tested.
The liquidation management is realized by means of two methods - the assets management and liquid borrowing funds management. The liquidation risk and interest risk management is based on the GAP-analysis. This analysis lies in the calculations of the absolute and relative gap between the assets and liabilities flows as for the maturity date. The calculations of this index are executed every month for all main currencies: UAH, USD, Euro, RUR. The control is consolidated in the Head Bank and in its branches. For the evaluation and analysis of the actual liquidity and payment ability, the Bank utilizes the obligatory requirements of the determined economic standards of the National bank of Ukraine as for the commercial banks activities and additional indexes.
The credit risk management is realized by means of the making of management decisions with the object to receive the maximum of the possible profits with the minimal risk of losses on the base of the execution of quantitative and qualitative analysis of the credit portfolio. The main elements of the credit risk management are: the quality management, reservation, limitation and formation of an efficient interest policy. The minimization of the credit risk is realized by means of diversification of the credit portfolio (the intake of a great number of independent borrowers as for domain attributes and cycle circulation etc.).
With the object to evaluate, to control and to manage the operating risk in the Bank:
- the system of the power limitation as for operations executions was developed.
- the internal control and audit are realized.
- the government body is always informed about all possible operating risks.
- the reserves for the covering of all possible losses are forming.
- the insurance of the possible loss.
The department of monitoring and control of the charge cards risks was created in the Bank. This department communicates round-the-clock with the clients of the Bank that provide a high security level and reduce the volume of the controversial transactions.
The Bank possesses a legalization of profits (money-laundering) system, received following a crime. All the financing operations with the sum more than 80 000,00 UAH are under control. The financing operations that don't have any characteristic indicated in the Program of the financial monitoring are also under control.
The control of the risk rising is imposed on the Business managers and supportive directions of the Head Bank, chiefs of the regional departments and audit services and regional control departments.
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