Annual Report 2010 - ProCredit Bank

18
Annual Report 2010
loyalty of its clients and, at the same time, gained
new ones. Business clients tend to account for a
small share of our deposits, but our efforts to cater
to this segment’s demand for account-based
services resulted in a 7% rise in business client
deposits this year. This increase brought their deposits
to RON 105 million (EUR 24.6 million) and
the bank’s total current account funds to RON 69.4
million (EUR 16.2 million), an increase of 30%.
The bank offers several popular financial packages,
which bundle a range of products and services
with the advantage of a single monthly fee and
lower transaction costs. Our salary earner and
pensioner packages increased by 37% over the
previous year to 7,723. For our business clients,
we introduced a package consisting of a current
account, business bank card and e-banking access.
Following the success of last year’s InfoPayment
service, the bank also launched InfoEncashment,
which automatically notifies clients via text
message whenever a cheque is cashed and the
amount is debited to the holder’s account. The
new product was well received, with nearly 650
clients signing on by year-end.
In 2010, 1,300 new clients signed up for e-banking,
bringing the total number of customers using
this service to 3,553 by the end of the year, approximately
2,500 of whom are business clients.
The number of online transactions climbed to
15,270 in December, representing a 55% increase
year-on-year.
Customer Deposits
Volume (in EUR million)
180
160
140
120
100
80
60
40
20
0
Jun
06
Dec
Jun
07
Dec
Jun
08
Dec
Jun
09
Dec
Term Savings Sight Total number
Number (in ’000)
Jun
10
Dec
180
160
140
120
100
80
60
40
20
0
We continued to expand our ATM network in 2010,
bringing the total to 65 machines. In addition,
22,000 bank cards were in circulation by the end
of December, with the share of active cards rising
from 54% to 64%. Card transactions increased by
47% in volume, to RON 12.9 million (EUR 3.0 million)
and by 40% in number, to more than 183,000
during the year.
Domestic transactions continued to fall in 2010,
but at a slower pace than in 2009. Transactions
dropped by 4.7% in number, to 576,226, and by
13% in volume to RON 2,058 million (EUR 693 million).
International money transfers remained stable
in number (51,475), but recorded an increase
in volume of 13.4% to RON 540 million (EUR
126 million).
Financial Results
Despite the recessionary economy, low demand for
new loans and declining appetite for investments,
the bank’s loan portfolio shrunk only marginally.
However, there were significant structural changes:
the percentage of the Very Small portfolio relative
to total volume decreased, while the weight of
Small and Medium loans increased, leading to an
overall decline in interest revenues. The bank was
profitable before loan loss provisions, which rose
to historic levels. Further cost-saving measures
helped contain the net losses, however, and the
bank expects to break even in 2011.
Number of Customer Deposits – Breakdown by Size*
1.0%
20.2%
21.2%
0.1%
o.03%
57.5%
< EUR 100 EUR 10,001 – EUR 50,000
EUR 101 – EUR 1,000 EUR 50,001 – EUR 100,000
EUR 1,001 – EUR 10,000 > EUR 100,000
* 31 Dec 2010