Annual Review and Financial Figures 2006 (in PDF)
TABLE OF CONTENTS
Republic of Belarus. Macroeconomic indicators
Republic of Belarus. Banking system
New IT banking system architecture
Personnel and organisational structure
Belarusbank Financial Statements
Consolidated statement of changes in equity
Consolidated statement of cash flow
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 |
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N. Ermakova |
Supervisory Board
|
Nikolai KORBUT
Vladimir BELOKHVOSTOV
Nikolai BECKISH
Ivan VABISHCHEVICH
Alexander ERMAK
Alexander KERNOZHITSKY
Andrei KRUGLEI
Aleksandr SERGHEENOK
Nikolai SNOPKOV
Mikhail SHABAN
Valentina SHURAK
|
Management Board
|
Chairperson of the Board Members of the Board
Valentina LUCHIANENKO
Valentina NAZARENKO
Vladimir NOVIK
Ivan KOZEL
Gennadi GOSPODARIK
Vladimir ZANKO
Grigori GRUDNITSKY
Vladimir DRUSCHITS
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 Irina LISOKOVSKAYA |
REPUBLIC OF BELARUS
- 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:
machine-building
metal-processing
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
External debt / GDP, %
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
Total assets/Total equity, US$ bn
GDP/Total assets, US$ bn
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
Mission
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
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Major activities
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
Assets dynamics, US$ m (equivalent)
Net profit dynamics, US$ m (equivalent)
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
Top 5 Belarusian banks in terms of assets and equity, US$ m
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
Ratings
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 $1.7 bn by the end of the year
As of the end of 2006, bad debts stood at 0.01% of the Bank’s private customers loan portfolio
Bank plastic cards
- Principal member of MasterCard Int. and VISA Int.
- MasterCard Int. sponsor for 6 Belarusian banks
- Accounts for more than 55% of issued bank plastic cards
- From December 2003 the Bank issues VISA Int cards with microchip
Key indicators 2007
Cards issue,%
In 2006, the Bank issued 2m bank cards
A number of projects were imple-mented to expand the use of plastic cards in the non-cash payments in the country
A special programme was set up to develop bank credit cards processing
SMS-banking capabilities were expanded
Mass payments
In 2006, the Bank processed more than 300 types of mass payments
More than 40% of mass payments were processed on a non-cash basis
In 2006, work was began on new Internet payment technology
Securities
Information on the issue of bonds for individual customers
Refinancing rate in 2006, %
In 2006, the Bank issued the first long-term corporate bonds in the Republic of Belarus
In 2006, bonds issued by the Bank yielded:
•7% per annum in USD and EUR
•refinancing rate of the National Bank of the Republic of Belarus at +0.5 -1% per annum in BYR
In 2006, the Bank was the only institution in the country to offer security trust management services. More than 2.5 m shares were held in trust
The Bank strengthened its leadership within the depository services market. By the end of the year, it held more than US$ 1.121 bn (equivalent) in assets
Treasury
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
Contacts
HEAD OFFICE
32, Myasnikov St.,
220050 Minsk, Belarus
Telex: 252408 PION BY
SWIFT: AKBB BY 2X
http://www.belarus-bank.by
E-mail: Info@belarus-bank.by
INTERNATIONAL PROJECTS DEPARTMENT
Tel.: +375 (17) 218 86 02, 289 38 14
Fax: +375 (17) 226 45 64
E-mail: intprojects@belarus-bank.by
INTERNATIONAL COOPERATION DEVELOPMENT
Tel.: +375 (17) 218 87 35
Fax: +375 (17) 226 45 64
PROJECT APPRAISAL
Tel.: +375 (17) 218 87 12
Fax: +375 (17) 200 82 27
INTERNATIONAL FUNDING
Tel.: +375 (17) 218 87 71
Fax: +375 (17) 226 45 64
CORRESPONDENT BANKING
Tel.: +375 (17) 218 80 07
Fax: +375 (17) 222 45 91
POLAND
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
http://www.belarus-bank.pl/
RUSSIA
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
http://www.belarus-bank.ru/
GERMANY
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
CHINA
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
www.belarus-bank.org.cn