Annual Report 2012 - The Cyprus Development Bank

annual report 2012REPORT OF THE BOARD OF DIRECTORS (continued)The continued improvement of asset quality through effective management of non-performing loans is also a key strategic priority ofthe Group. The Group places continued emphasis on effective risk management through adoption of prudent policies and measuresto mitigate any adverse consequences that may result from the deepening economic crisis.At the same time, the banking crisis also creates opportunities for the bank to increase its market share and selectively grow theservices it offers to its corporate clients and small / medium sized enterprises. The Group will also continue to further rationalise internalprocedures and improve operating efficiency, while also focusing on the provision of quality asset management and investment andadvisory services, through its subsidiary companies Global Capital Limited and PCM Advisers Limited. The continued strengtheningand profitable operation of the Group’s Russian subsidiary in the Krasnodar region constitutes a key strategic priority for the Group.BRANCHESThe Company carries out its activities through its head office and two branches, in Nicosia and in Limassol, Cyprus.BOARD OF DIRECTORSThe names of the members of the Board of Directors as at the date of this report are set out on page 3.All directors were members of the Board throughout the year except Mr Andreas Pourgouras who resigned on 19 January 2012. Themembers of the Board of Directors express their gratitude for his valuable contribution.In accordance with the Company’s Articles of Association, at the Company’s annual general meeting for 2013, Messrs Neoclis Nicolaou,Themis Papadopoulos, John Pittalis and Menelaos Shiacolas will be due for retirement and being eligible, offer themselves for reelection.EVENTS AFTER THE BALANCE SHEET DATECurrent developments in the economic environment in Cyprus are referred to in note 35 of the financial statements. Details of theGroup’s Capital Enhancement Plan are referred to in note 31 (e) of the financial statements. There were no other material events afterthe balance sheet date, which affect the financial statements as at 31 December 2012.INDEPENDENT AUDITORSThe independent auditors, Messrs KPMG Limited, have informed the Company of their willingness to continue in office and a resolutiongiving authority to the Board of Directors to fix their remuneration will be submitted to the Annual General Meeting.By the order of the BoardRena Rouvitha PanouChairmanNicosia, 4 June 20135