Annual Report - Raiffeisen Bank Kosovo JSC

More documents

Recommendations

Info

Financial Statements Raiffeisen Bank Kosovo 2009 From Risk Management and control perspective there are two aspects of risk: • Risk evaluation • Risk Control Interest Risk Evaluation The Interest Rate risk is measured using VaR (Value at risk) approach. This approach implies a measurement of scenario using 10 days duration and 99% confidence interval. The VaR is measured at stress of 1bps shift in the Yield curve. This Scenario assumes the implication on Profit and loss account of the Bank, in case the yield curve moves in one or the other direction by one basis point or 0.01%. The results of the sensitivity analysis are presented to the management on a weekly basis, and are independently sent by RZB Vienna Risk Management. Interest Rate Risk Control The mechanism of control is utilized through the banking book which is produced on a weekly basis. The Bank currently owns banking book limits, set at 418 Million EUR. The weighting factors assume that the distant future is more uncertain than the near future, therefore according to this approach the longer the maturities, the higher the weighting factors to be accounted against the limit. 4.7 Capital Risk Management The Bank manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. The Bank’s overall strategy remains unchanged from previous year. The capital structure of the Bank consists of debt, which includes borrowings, and equity attributable to equity holders, comprising issued capital and retained earnings. Gearing ratio The Bank’s risk management committee reviews the capital structure on a continuously basis. As part of this review, the committee considers the cost of capital and the risk associated with each class of capital. The gearing ratio at the year ended was as follow: 2009 2008 Debt 38,790 16,100 Equity 81,392 74,224 Net debt to equity ratio 48% 22% 72 www.raiffeisen-kosovo.com Introduction Management Board Organisational Structure Vision and Mission RZB and RI
Raiffeisen Bank Kosovo 2009 Financial Statements 5. Fair Value Of Financial Instruments Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price. The estimated fair values of financial instruments have been determined by the Bank using available market information, where it exists, and appropriate valuation methodologies. However judgement is necessarily required to interpret market data to determine the estimated fair value. The volume of activity in financial markets is not significant. While Management has used available market information in estimating the fair value of financial instruments, the market information may not be fully reflective of the value that could be realised in the current circumstances. Fair Values of Financial Instruments 2009 2008 Carrying value Fair value Carrying value Fair value Assets Due from other banks 170,194 170,194 104,384 108,021 Loan and advances to customers 357,355 357,355 413,091 418,589 Investment securities 33,718 33,718 206 206 Liabilities Deposits from customers 547,815 547,815 495,187 495,187 Deposits from banks 39,549 39,549 18,449 18,449 6. Cash And Cash Equivalents And Mandatory Reserve 2009 2008 Cash on hand 23,371 27,909 Balances with the CBK 55,568 36,313 Correspondent accounts with other banks 19,305 4,855 Money market placements 8,715 835 Total 106,959 69,912 Cash and balances with banks include a mandatory liquidity reserve balance with CBK of EUR 53,005 thousand (31 December 2008: EUR 47,750 thousand). The liquidity reserve balance is calculated on the basis of a simple average over a week and should be maintained as 10 per cent of certain obligations of the Bank. As such the balance can vary from day-to-day. This balance is excluded from cash and cash equivalents for the purposes of the cash flow statement. Glosary Macroeconomic Environment Overview Segment Reports Financial Statements Addresses www.raiffeisen-kosovo.com 73
Page 1 and 2:
Annual Report 2009
Page 3 and 4:
Raiffeisen Bank Kosovo 2009 Content
Page 5 and 6:
Raiffeisen Bank Kosovo 2009 Introdu
Page 7 and 8:
Raiffeisen Bank Kosovo 2009 The Man
Page 9 and 10:
Raiffeisen Bank Kosovo 2009 Vision
Page 11 and 12:
Raiffeisen Bank Kosovo 2009 RZB and
Page 13 and 14:
Raiffeisen Bank Kosovo 2009 Glossar
Page 15 and 16:
Raiffeisen Bank Kosovo 2009 The Mac
Page 17 and 18:
Raiffeisen Bank Kosovo 2009 The Mac
Page 19 and 20:
Raiffeisen Bank Kosovo 2009 Raiffei
Page 21 and 22: Raiffeisen Bank Kosovo 2009 Raiffei
Page 23 and 24: Raiffeisen Bank Kosovo 2009 Segment
Page 39 and 40: Raiffeisen Bank Kosovo 2009 Financi
Page 71: Raiffeisen Bank Kosovo 2009 Financi
Page 87 and 88: Raiffeisen Bank Kosovo 2009 Address
Page 89 and 90: Raiffeisen Bank Kosovo 2009 Address
Page 91 and 92: RZB Group in Europe
show all

Annual Report - Raiffeisen Bank Kosovo JSC

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?