2006 year

Annual Review and Financial Figures 2006 (in PDF)


Address of the Chairperson

Supervisory Board

Management Board

Republic of Belarus. Macroeconomic indicators

Republic of Belarus. Banking system

Belarusbank overview


Major activities

Key indicators and ratios

Position in the local market

International position


Corporate banking

Retail banking



International financing

International award

New IT banking system architecture

Personnel and organisational structure

Strategy for 2007—2010

Belarusbank Financial Statements

Independent auditors’ report

Consolidated income statement

Consolidated balance sheet

Consolidated statement of changes in equity

Consolidated statement of cash flow


Dear Ladies and Gentlemen!

Belarusbank is the largest and oldest universal financial institution in the Republic of Belarus. The history of our Bank is closely linked to the modern history of the Belarusian state. Belarusbank has taken a difficult path to ultimately become the leader of the country’s banking system.

Millions of individuals and tens of thousands of corporate customers use our bank’s services daily. Our Bank makes a significant contribution to the implementation of the state’s economic policy and assists in the implemen-tation of investment projects vital for the country’s economy.

Belarusbank continues to strengthen its position in the banking and financial service markets, offering its clients comprehensive financial solutions. We have kept our leading position in the international transactions market and service a major part of Belarus’ foreign trade turnover.

In 2006, the Bank’s total assets exceeded an equivalent of US$ 5.5 bn, placing us among the 50 largest banks in Central and Eastern Europe.

In 2006, Belarusbank actively developed international co-operation. For the first time, the Bank implemen-ted major projects attracting interna-tional syndicated loans.

Belarusbank’s successful per-formance is affirmed by its Fitch Ratings, the reports of our auditors — Deloitte&Touche — and the opinions of numerous well-known financial and consulting institutions.

Our Bank takes an optimistic view of the future and designs and implements state-of-the-art banking technology enabling us to maintain and strengthen our niche in domestic and foreign markets.

Chairperson of the Board N. Ermakova

Supervisory Board

Nikolai KORBUT
Minister of Finance of the Republic of Belarus

Minister of Housing of the Republic of Belarus

Chief Economist, Belarusian Railway

Head of Financial Department, Brest Regional Executive Committee 

Alexander ERMAK
Head of Financial Department, Minsk Regional Executive Committee

Head of Financial Department, Minsk City Executive Committee

Head of Financial Department, Gomel Regional Executive Committee 

Head of Financial Department, Vitebsk Regional Executive Committee

Head of Financial Department, Moghiliov Regional Executive Committee

Mikhail SHABAN
Head of Financial Department, Grodno Regional Executive Committee

Valentina SHURAK
Chief Accountant, Beltelekom

Management Board

Chairperson of the Board
Nadezhda ERMAKOVA 


Members of the Board

First Deputy Chairperson of the Board

Deputy Chairperson of the Board

Vladimir NOVIK
Deputy Chairperson of the Board

Deputy Chairperson of the Board

Deputy Chairperson of the Board

Vladimir ZANKO
Deputy Chairperson of the Board — Head of Personnel Department

Member of the Board — Head of Security Departmen

Member of the Board — Head of Audit Department

All members of the Board have completed higher education and their professional competence is confirmed by a special Board of experts of the National Bank of the Republic of Belarus.

Chief accountant



Belarus and Europe- Territory 207,600 sq. km. (13th rank in Europe)
36% — forests,
2% — water,
45% — agricultural lands

- Population 9.7 m (17th rank in Europe)

- Capital — Minsk
1.9 m population

- 6 regions, 118 districts

- Structure of industry:
chemical and petrochemical
electric power production
textile production
food processing
forestry and wood processing

Since 1991, the Republic of Belarus has taken its place in Eastern Europe as an independent state

Its history began in the 10th century but the world is only discovering Belarus now. It was long a republic of the former USSR (Belarusian Soviet Socialistic Republic, BSSR)
Before 1991 Belarus was not repre-sented in the world community as an independent political, economical or ethnic formation. It was regarded as part of the Soviet monolith

In XXI century Belarus is one of the most dynamic developing countries in Central and Eastern Europe

Macroeconomic indicators

Belarus macroeconimics

External debt / GDP, %

depts of Belarus

2006 saw positive trends in major macroeconomic indicators

In terms of GDP growth and inflation decline, Belarus took one of the leading positions within the CIS

In 2006, Belarus maintained a low level of external debt and a stable macroeconomic situation, which enabled Belarusian economic entities to increase their operations in international capital markets

Banking system

banks in Belarus

Total assets/Total equity, US$ bn

total assets

GDP/Total assets, US$ bn

Belarus GDP

By the end of 2006, total banking assets grew against 2005 by more than 40%, reaching US$ 13.5 bn

The total equity of the banking system grew against 2005 by more than 26% — to US$ 2.4 bn

A number of leading Belarusian banks took on their first major foreign borrowings by attracting syndicated loans and issuing credit notes

In 2006, banks attracted more than US$ 1 bn in foreign resources

In 2006, further steps were taken to attract foreign capital into Belarusian banks’ statutory funds

Belarusbank overview


The mission of Belarusbank is to build lasting relationships with clients by delivering financial services of the highest quality for the purpose of:

- Promoting economic growth in the Republic of Belarus

- Reaching every retail customer with efficient banking services

- Supporting domestic producers

- Developing international cooperation

first office of Saving funds in Minsk

Major activities

corporate and retail business


In 2006, the Bank maintained its leading position within the Belarusian corporate and retail service markets

In 2006, the Bank began providing international forfaiting services for its corporate clients. There was significant growth in the number transactions involving instruments of trade as well as project and structured financing

In retail banking services, 2006 saw a significant expansion in the range of products involving plastic cards. The Bank brought in a system of non-cash debit settlements and began to set up Internet-banking

Key indicators and ratios

Belarusbank indicators

Assets dynamics, US$ m (equivalent)

Belarusbank profits

Net profit dynamics, US$ m (equivalent)

net profit in 2004-2006

In 2006, the Bank’s assets grew against 2005 by more than 52%, reaching US$ 5.5 bn

In 2006, the Bank’s profit rose by 68% — to US$ 40.8 m

In 2006, work began on designing measures to raise the Bank’s efficiency (ROE/ROA) to meet average European standards

Position in the local market

Belarusbank assets and profit

Top 5 Belarusian banks in terms of assets and equity, US$ m

major banks of Belarus

In 2006, the Bank maintained its leading position in the domestic market for banking services

In 2006, the Bank reached all the targets set by its annual strategy

International positions

In accordance with the Top 1,000 world banks ranking, published annually by «The Banker», Tier 1 capital Belarusbank ranks:
18th in Central and Eastern Europe
262nd in Europe
676th in the world

Europe major banks


fitch rating

In 2006, the Bank’s rating remained unchanged — largely due to the fact that the Republic of Belarus does not have a sovereign rating

In view of the large volumes of anticipated foreign loans, Belarusbank began the work on obtaining ratings from other rating agencies

In 2006, the Bank began to develop a programme to engage rating agencies in evaluating the Bank’s international projects

Corporate banking

Dynamics of corporate lending, US$ m (equivalent)

Corporate loan portfolio

Dynamics of balances in corporate accounts, US$ m (equivalent)

In 2006, the Bank provided services to more than 73,000 corporate customers

The Bank’s corporate loan portfolio grew by more than 54% — to US$ 2.7 bn by the end of the year

As of 2006, bad debts stood at 2% of the Bank’s corporate loan portfolio

Retail banking

Dynamics of retail lending, US$ m (equivalent)

Retail loan portfolio

Dynamics of balances in individuals’ accounts, US$ m (equivalent)

In 2006, more than 905,000 loan agreements in credit portfolio were signed with private customers

The Bank’s private customer loan portfolio grew by more than 67% — to US $1.7 bn by the end of the year

As of the end of 2006, bad debts stood at 0.01% of the Bank’s private customers loan portfolio

Bank plastic cards

- Principal member of MasterCard Int. and VISA Int.

- MasterCard Int. sponsor for 6 Belarusian banks

- Accounts for more than 55% of issued bank plastic cards

- From December 2003 the Bank issues VISA Int cards with microchip

Key indicators 2007

Cards issue,%

In 2006, the Bank issued 2m bank cards

A number of projects were imple-mented to expand the use of plastic cards in the non-cash payments in the country

A special programme was set up to develop bank credit cards processing

SMS-banking capabilities were expanded

Mass payments

In 2006, the Bank processed more than 300 types of mass payments

More than 40% of mass payments were processed on a non-cash basis

In 2006, work was began on new Internet payment technology


Information on the issue of bonds for individual customers

Refinancing rate in 2006, %

In 2006, the Bank issued the first long-term corporate bonds in the Republic of Belarus

In 2006, bonds issued by the Bank yielded:

•7% per annum in USD and EUR

•refinancing rate of the National Bank of the Republic of Belarus at +0.5 -1% per annum in BYR

In 2006, the Bank was the only institution in the country to offer security trust management services. More than 2.5 m shares were held in trust

The Bank strengthened its leadership within the depository services market. By the end of the year, it held more than US$ 1.121 bn (equivalent) in assets



Exchange rate development


The volume of operations on the foreign exchange market rose against 2005 by 57.4% — to US$ 14 bn

In 2006, the Bank ranked first for its number of operations on the state securities market and second for securities issued by the National Bank of the Republic of Belarus

By the end of the year, the Bank’s securities portfolio reached US$ 465 m (equivalent)

International financing

Trade financing limits more than doubled against 2005 — to US$ 0.5 bn

In 2006, for the first time in its history, the Bank gained access to international market for untied credit by attracting syndicated loans

In 2006, the Bank began to investigate issuing Eurobonds

In October 2006, the Bank became the first in Belarus to join the International Forfaiting Association

Selected projects involving foreign financing

Foreign sources were used to finance more than 30 investment projects for Belarusian enterprises in various branches of the economy: agriculture, microelectronics, industry and construction

In 2006, two syndicated loans were attracted, totalling US$ 115 m

International award

In 2006, ‘The Banker’ magazine, an authority in the world of finance, named Belarusbank “Bank of the year 2006 for Belarus”

New IT banking system architecture

In 2006, the Bank began issuing a new IT System based on SAP & IBM solutions. The new IT solution must replace a decentralised branch-based IT model with a centralised head office based model

In 2006, a new software and hardware complex was created on the basis of IBM zSeries, the IBM pSeries and a Storage Area Network using Hitachi Lightning 9980V. This enabled a new Core Banking System to be installed
The Bank’s communications infrastruc-ture was modernised, allowing it to integrate its subdivisions and outlets into the new Core Banking System online

The Bank’s centralised model of banking and transformation of four tiers of organisational structure to two began with a new IT solution using SAP Banking. New channels for selling banking products were introduced: Internet banking, e-banking, call centres and mobile banking

Personnel and organisational structure

Organisational structure optimisation

Organisational structure optimisation goals

As of the end of 2006, authorised staff totalled 25 thousand

In 2006, organisational structures were streamlined (from four tiers to two tiers)

Operating expenses were reduced by gradually phasing out the number of staff needed

Strategy for 2007—2010

Increasing total assets to US$10bn:
- e.g. by increasing foreign borrowings to US$2bn

Reducing operating costs by:
- Optimising organisational structure
- Re-engineering banking business processes
- Implementing a centralised IT-solution on the base SAP and IBM platform

Enhancing Bank’s efficiency:
- ROA to 2%
- ROE to 10%

BELARUSBANK Financial Statements

Independent auditors' report


32, Myasnikov St.,
220050 Minsk, Belarus
Telex: 252408 PION BY
E-mail: Info@belarus-bank.by

Tel.: +375 (17) 218 86 02, 289 38 14
Fax: +375 (17) 226 45 64
E-mail: intprojects@belarus-bank.by

Tel.: +375 (17) 218 87 35
Fax: +375 (17) 226 45 64

Tel.: +375 (17) 218 87 12
Fax: +375 (17) 200 82 27

Tel.: +375 (17) 218 87 71
Fax: +375 (17) 226 45 64

Tel.: +375 (17) 218 80 07
Fax: +375 (17) 222 45 91

Stepan Yanchouk
6/57, Bielawska St.,
02-511 Warsaw, Poland
Tel.: +48 (22) 844 44 33
Fax: +48 (22) 844 44 80
E-mail: info@belarus-bank.pl

Victor Vadushin
69/75-411, Vavilov St.,
117846 Moscow, Russia
Tel.: +7 (495) 938 23 44
Fax: +7(495) 938 23 45
E-mail: info@belarus-bank.ru

Nikolai Vavokhin
43, Oeder Weg
D-60318 Frankfurt am Main, Germany
Tel.: +49 (69) 5979 35 63
Fax: +49 (69) 5979 47 44
E-mail: info@belarus-bank.de
HTTP:// www.belarus-bank.de

Evgeniy Bogomazov
93 Jianaguo Road, Building 4, Room 503,
Chaoyang District, Beijing
Tel.: +86 (10) 596 04 291
Fax: +86 (10) 596 04 290
E-mail: info@belarus-bank.org.cn


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