Annual Report 2012 - Raiffeisen Bank Kosovo JSC

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22 Credit and Risk Management 2012 continued to be active for risk management as a discipline at the core of Raiffeisen Bank Kosovo, including all activities that affect the Bank’s risk profile. The banking risk management framework, functions and activities were managed according to best practices and Raiffeisen Bank International guidelines. Identification, measurement, monitoring and controlling of risks were designed to ensure that risk-taking decisions are in line with the Bank’s strategy and objectives. Portfolio risk management was a core activity for this year, and the focus continued to be on the implementation of collection tools and further Early Warning System functionality. This has resulted in new procedures and functions to assist in the early identification of portfolio deterioration and to review key performance indicators. In addition it was fuelled by other activities to aid the bad debt recovery rate. The effective management of risk, consistent with the agreed risk appetite has remained fundamental for the Bank. Hence, improvement of internal processes and procedures for offering better services to its customer involved a number of activities, such as the implementation of new products such as Working Capital Credit Line and Factoring, further improvement to lending processes which resulted in increased speed of the loan processing, further adaption of the scorecard as a decision making tool, and implementation of the Application Processing System (APS) for Corporate business. Basel II and Basel III Raiffeisen Bank Kosovo confirms that all requirements for the implementation of Basel II have been fulfilled within the given timeline, as required by Head Office in Vienna. All methods, tools, processes and procedures that have been implemented are state of the art risk management practices. Based on new developments in the financial markets and new requirements for further developments, the Bank’s Risk Management Department has started to implement the new requirements of Basel III, focusing on the area of liquidity risk. Operations Payments During 2012, there was an increasing focus on the processing of payments. The number of incoming payments in 2012 increased by 15 per cent, compared to 2011 whereas the number of outgoing payments increased by 6% compared to 2011. The total value of payments was € 4,374 million. Trends for incoming and outgoing payments in thousands 600 400 200 100 0 2008 2009 2010 2011 2012 Incoming Outgoing The application of the E-banking service has impacted on the increasing number of transactions and users. During 2012, the number of E-banking users increased by 11 per cent compared with 2011. The total number of E-Banking transactions increased by 30 per cent compared to 2011.
Trade Finance Raiffeisen Bank Kosovo facilitates and finances a significant volume of domestic and international trade by providing a variety of Trade Finance products. As shown in the figures below, during 2012 the volume of Trade Finance products increased to € 74.6 million. Trade finance products - volume in € million 120 100 80 60 40 20 0 100.9 41.3 2008 2009 2010 2011 2012 Also, the outstanding amount of Trade Finance business at the end of 2012 reached € 35.9 million. Payroll Processing Payroll processing is one of the products that the Bank offers to business customers; by processing payroll lists and handling reconciliations. The total number of payrolls processed in 2012 compared with 2011 achieved a growth of 20 per cent. Collection Accounts 52.1 42.3 Volume (all incoming and outgoing products) 74.6 Trade finance products - outstanding in € million Collection Accounts are services that the Bank offers to business customers who have accounts with Raiffeisen Bank Kosovo. The total number of payments in 2012, showed a growth of 4 per cent in 2012. 45 40 35 30 25 20 0 42.1 26.7 38.9 35.9 2008 2009 2010 2011 2012 Outstanding (active) 42.6 23 Addresses Glossary Financial Statements Segment Reports Overview Macroeconomic Environment RBI Vision and Mission Management Board Introduction
Page 1 and 2: Annual Report 2012
Page 3 and 4: Content Report of the Supervisory B
Page 5 and 6: Report of the Management Board 2012
Page 7 and 8: Raiffeisen Bank Kosovo Organisation
Page 9 and 10: Raiffeisen Bank International at a
Page 11 and 12: Output The yearly aggregated growth
Page 13 and 14: Similar to the decline in the growt
Page 15 and 16: The banking sector in Kosovo contin
Page 17 and 18: Treasury Kosovo money market and th
Page 19 and 20: Given the focus on delivering value
Page 21: During 2012, the Bank was focused o
Page 25 and 26: E-Learning proved popular during 20
Page 27 and 28: Statement of Management’s Respons
Page 29 and 30: Independent Auditors’ Report To t
Page 31 and 32: Separate statement of comprehensive
Page 33 and 34: Separate statement of cash flow (am
Page 35 and 36: A parent need not present consolida
Page 37 and 38: 3.3.5. Investments at fair value th
Page 39 and 40: characteristics (i.e., on the basis
Page 41 and 42: can be subject to provisioning. For
Page 43 and 44: a) Impairment charge for credit los
Page 45 and 46: Loans with renegotiated terms Loans
Page 47 and 48: 4.3 Liquidity risk Liquidity risk i
Page 49 and 50: Geographical risk The geographical
Page 51 and 52: In management’s opinion, the sens
Page 53 and 54: 4.5 Operational risk The primary re
Page 55 and 56: 6. Cash and cash equivalents and ma
Page 57 and 58: 9. Other loans 2012 2011 Other loan
Page 59 and 60: 15. Deposits and borowings from ban
Page 61 and 62: 20. Other income 61 2012 2011 Incom
Page 63 and 64: 24. Contigencies and commitments Le
Page 65 and 66: 65 Addresses Glossary Financial Sta
Page 67 and 68: RBI Group in Europe 67 Addresses Gl
Page 69 and 70: Gjakova Branch Nena Tereza No. 328
Page 71 and 72: Bosnia and Herzegovina Raiffeisen L

Annual Report 2012 - Raiffeisen Bank Kosovo JSC

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