Annual Report 2012 - Raiffeisen Bank Kosovo JSC

The banking sector in Kosovo continues to be well
capitalized, above the requirements set by the Central
Bank of the Republic of Kosovo. The capital adequacy
ratio for Kosovo commercial banks remains at 17 per cent,
which is well above the required minimum of 12 per cent.
60 per cent of total capital composition is paid up capital
(source: CBK Stability Report).
The structure of Raiffeisen Bank Kosovo equity also shows
a high proportion of share capital (€ 58 million) which
as at 31 December 2012 stands at 58 per cent (2011:
59 per cent). The retained earnings were € 41.2 million
including the dividend distribution of € 12 million in 2012.
Raiffeisen Bank Kosovo maintains a capital adequacy ratio
which ensures compliance with Central Bank of Kosovo
regulations on Bank Capital Adequacy. According to
the Central Bank Regulation on Bank Capital Adequacy,
commercial banks that operate in Kosovo are required to
maintain a minimum ratio of 8 per cent in Tier 1 Capital
and 12 per cent in total own funds to risk assets and other
risks. As of 31 December 2012, Raiffeisen Bank Kosovo
had a Tier 1 Capital adequacy ratio of 12.7 per cent and
a total own funds ratio of 13.7 per cent.
Structure of equity
in € million
120
100
80
60
40
20
10
0
2008 2009 2010 2011 2012
Other Reserves
Retained Earnings
Share Capital
Net income after tax in 2012 was € 12.6 million, a slight increase compared with the 2011 (2011: € 12.4 million).
Raiffesen Bank income is strongly dominated by income generated from loans and advances business, mainly from
loans and advances to local customers. This means that income is mainly generated in the territory of Kosovo and is not
The General and Administrative expenses (excluding depreciation of fixed assets) as of 31 December 2012 were
€ 22.8 million (2011: € 22.9 million). The cost income ratio is 58 per cent (2011: 57 per cent). Staff costs also include
staff related costs, such as training and other professional development. These costs continue to be an important part of
operational expenses as the Bank considers the staff to be the most important asset for future development.
Gross income development and structure
in € million
100 %
80 %
60 %
40 %
20 %
0 %
48,2
44,1
41,7
45,9
45,3
2008 2009 2010 2011 2012
Interest Income Non Interest Income Gross Income
55
50
45
40
35
General administrative expenses
in € million
100 %
80 %
60 %
40 %
20 %
0 %
23,7
24,1 24,1
26,3 26,4
2008 2009 2010 2011 2012
Administrative costs Staff costs Total OPEX
15
35
30
25
20
15
10
Addresses Glossary Financial Statements Segment Reports Overview Macroeconomic Environment RBI Vision and Mission Management Board Introduction