Annual Report 2010 - ProCredit Bank

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Annual Report 2010
Influence to Economic Value of the Capital
2% increase of interest rates 2% decrease of interest rates
Total EUR RSD Total EUR RSD
31. December 2010 2009 (270,825) (259,901) (186,510) (174,130) (88,352) (90,109) 259,901 270,825 186,510 174,130 88,352 90,109
Influence to Economic Value of the Capital
2% increase of interest rates 2% decrease of interest rates
Total EUR RSD Total EUR RSD
31. December 2009 2008 (259,901) 256,780 (174,130) 320,029 (73,274) (88,352) (256,780) 259,901 (320,029) 174,130 73,274 88,352
Having in mind presented volume of potential impact of the changes
in interest rates to the economic capital value and profit/loss,
the Group considers its interest rate risk profile to be adequate.
D) Liquidity risk
Liquidity risk arises in the general funding of the Group’s activities
and in the management of its liquidity position. It includes both the
risk of being unable to fund assets at appropriate maturities and
rates and the risk of being unable to liquidate an asset at a reasonable
price and in an appropriate time frame.
The Group has diversified funding base. Funding base includes:
• customer deposits with wide ranges of maturity
• money market deposits
• loans from foreign banks and financial institutions
• subordinated debt
• share capital
The Group continually assesses liquidity risk by identifying and
monitoring changes in funding required meeting business goals
and targets set in terms of the overall Group’s strategy.
The maturities of assets and liabilities and the ability to replace,
at an acceptable cost, interest-bearing liabilities as they mature,
are important factors in assessing the liquidity of the Group and its
exposure to changes in interest rates and exchange rates.
Monitoring and reporting take the form of cash flow measurement
and projections for the next day, week and month respectively, as
these are key periods for liquidity management. The starting point
for those projections is an analysis of the contractual maturity of
the financial liabilities and the expected collection date of the financial
assets.
Liquidity requirements to support calls under guarantees and
standby letters of credit are considerably less than the amount of
the commitment because the Group does not generally expect the
third party to draw funds under the agreement. The total outstanding
contractual amount of commitments to extend credit does not
necessarily represents future cash requirements, since many of
these commitments will expire or terminate without being funded.
D.1 Non derivatives cash flow
The table below presents the cash flows payable by the Group under
non-derivative financial liabilities by remaining contractual
maturities at the balance sheet date. The amounts disclosed in the
table are the contractual undiscounted cash flows, whereas the
Group manages the inherent liquidity risk based on expected undiscounted
cash inflows.
As at 31 December 2010 Up to 1 – 3 3 –6 6 – 12 1 – 4 Over Total
1 month months months months years 4 years
Financial Liabilities
Liabilities to banks 2,215,022 – – – – – 2,215,022
Due to customers 8,423,786 11,384,001 8,249,774 7,516,066 1,421,301 251,890 37,246,818
Other borrowed funds 1,279,205 587,495 574,464 2,366,592 15,001,577 1,820,481 21,629,813
Provisions 4,964 9,927 14,891 29,781 – 32,670 92,233
Subordinated debt 6,578 134,246 13,131 129,557 1,420,736 1,815,600 3,519,848
Other liabilities 77,425 – 1,916 – – – 79,341
Total Financial Liabilities
(by contractual due dates) 12,006,980 12,115,669 8,854,176 9,104,222 18,546,865 4,155,163 64,783,075
Total Financial Assets
(by expected due dates) 23,540,235 4,549,756 6,266,205 10,400,006 26,383,870 6,513,465 77,653,537
As at 31 December 2009 Up to 1 – 3 3 – 12 1 – 2 2 – 5 Over Total
1 month months months years years 5 years
Financial Liabilities
Liabilities to banks 354,261 – – – – – 354,261
Due to customers 19,960,440 6,297,730 10,734,569 905,071 583,167 138,068 38,619,045
Other borrowed funds 1,486,875 554,265 2,770,244 4,244,732 9,322,058 565,331 18,943,505
Provisions 2,078 23,052 11,989 – – 37,581 74,700
Subordinated debt 2,743 77,959 136,571 221,946 2,942,580 – 3,381,799
Other liabilities 110,908 100,651 – – – – 211,559
Total Financial Liabilities
(by contractual due dates) 21,917,305 7,053,657 13,653,373 5,371,749 12,847,805 740,980 61,584,869
Total Financial Assets
(by expected due dates) 20,452,629 3,564,894 13,811,677 9,776,202 15,347,164 4,065,472 67,018,038