annual report 2018 - libra internet bank · 1 annual report 2018 the general manager’s message 2...

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2018

ANNUALREPORT

1 Annual Report 2018

The General Manager’s Message 2

Libra Internet Bank in Figures 3

Libra People 7

Libra – An Open Employer 8

Business Directions 13

Partnerships with Financial Institutions 20

ANNEXES: Financial Statements, ADMINISTRATORS’ REPORT 23

Table of contents

https://www.librabank.ro/documente/Situatii_financiare_2018_RO.pdf


We continue to grow organically and are always paying attention to market developments. As members of the American investment group New Century Holdings (since 2003), we have managed to earn and maintain our partners’ trust.

Libra Internet Bank is the story of people with vision and passion. A story about how a niche bank can become an important bank. From the beginning, we wanted to be relevant and to think “out of the box”. Our motivation is simple and authentic: SUCCESS.

We know how to respect our customers because we know how to respect ourselves.We believe in exigency and in the spirit of competition. We pay attention to technological developments and consider that innovation is important, which helps us adapt to the external environment and maintain the balance between traditional and digital channels.

We lay emphasis on maintaining a fair proportion between the personal and the professional life. We believe in business principles and in those who share them. This was, is and will remain the Libra culture.

Finally, I would like to thank the shareholders for their support, our employees for their loyalty and our customers for their trust!

The General Manager’s Message

Emil Bituleanu,General Manager of Libra Internet Bank

The year 2018 was about growth. An important, yet not at all simple growth.

On behalf of Libra Internet Bank, I present to you the Annual Report on the bank's activity in 2018.

Our niche strategy proved to be a winning card. For three years in a row, our main growth drivers have been the segments we have become specialized in: agriculture, real estate and professionals.

Libra Internet Bank ended 2018 with very good financial results, recording a net profit of Lei 95.8 million, 61% more than in the previous year, and an 18% increase in total assets. Moreover, Libra has consolidated its position at the middle of the Romanian banking system, with a 1.21%, market share at the end of the year.

The road here was not easy, but what follows will definitely be an even bigger challenge.

The sustained growth in recent years also determined the need to concentrate in one place the central divisions of the bank. Thus, since 2018, we have moved our Head Office to a new and accessible location, close to the City Center. Furthermore, in order to support our excellent development pace in recent years, we have also opened our third IT Center, in Cluj-Napoca.


Interest income

Interest expense

197,418,770 271,566,250

(41,749,663) (49,607,409)

29,519,158 33,397,014

(10,578,403) (12,006,121)

42,091 117,586

12,781,345 15,621,819

4,366,187 3,190,058

(71,362,842) (81,844,416)

(3,059,639) (3,110,078)

(46,077,308) (59,779,221)

(120,499,789) (143,733,715)

(1,903,131) (7,722,414)

(9,961,267) (15,063,588)

(6,843,607) -

52,591,691 95,759,480

Net interest income

Fee and commission income

Fee and commission expense

Net fee and commission income

Net income from financial instruments at FVTPL

Net gain from foreign exchange transactions and revaluation

Other operating income

Total operating income

Total operating expenses

Total comprehensive income, after tax

Operating profit

Personnel expenses

Profit before tax

Income tax expenses

*All amounts are expressed in RON.

Net profit for the year

Available for sale financial assets-net change in fair value

Amortization and depreciation

Impairment losses on financial instruments

Other operating expenses

31 December 2017 31 December 2018

155,669,107 221,958,841

18,940,755

191,799,485

21,390,893

262,279,197

71,299,696 118,545,482

69,396,565 110,823,068

59,435,298 95,759,480

Libra Internet Bank in Figures Main Financial Indicators*

4 Annual Report 2018* All amounts are expressed in RON.

Current tax liability

Deposits from customers

Loans from financial institutions

Provisions

Total liabilities

Other liabilities

Reserves

Share capital

Total liabilities and equity

Total equity

Retained earnings

Cash and cash equivalents

Loans and advances to National Bank of Romania

Loans and advances to banks

Loans and advances to customers

Investments securities available for sale

Investments securities at fair value through profit or loss

Available for sale financial assets

Investments securities at amortized cost

Property and equipment

Intangible assets

Deferred tax assets

Other assets

Total assets

Liabilities and Equity

31 December 2017 31 December 2018Assets

34,528,353 74,799,730

973,577,155 1,154,189,161

320,662,377 316,011,046

2,669,410,682 3.251,519,519

2,011,732 -

- 1,494,589

549,130,257 -

- 582,767,431

7,998,109 7,992,837

1,848,647 3,215,738

1,428,831 857,416

47,344,063 62,495,255

4,607,940,206 5,455,342,722

35.428.821 57.398.480

1,034,609 4,808,302

4,435,818 5,491,802

11,051,575 15,228,833

4,149,164,755 4,842,322,824

394,449,200 506,165,200

3,775,312 15,236,174

60,550,939 91,618,524

458,775,450 613,019,898

4,607,940,206 5,455,342,722

4,097,213,932 4,759,395,407

Libra Internet Bank in Figures Main Financial Indicators*


Suceava

Iaşi (2)

Bacău

Oradea

Timişoara (2)

Arad

SibiuBraşov

Galaţi

BrăilaBuzău

Craiova

Piteşti Ploieşti (2)

București (26)Constanţa (2)

Piatra NeamţBistriţa

Cluj Napoca (3)

Târgu-Mureş

Libra Internet Bank in figures Presence in Romania


The awards were given for the Chatbot service, developed by LIBRA INTERNET BANK‘s specialists. This app receives and solves loan, credit card or bank deposit applications, all through a simple and fast messenger type chat.

The Best Banking Product: Residential Projects Loan

Best return on assets

Best deposit dynamics

Best loan dynamics

Best profit dynamics

The Most Innovative Bank in Romania

Saving Product of the Year

*

*

Piața Financiară Magazine Awards Gala, 23rd edition

Bancheri de Top Gala, 11th edition

MasterCard Bank of the Year - Online Banking Gala - NoCash Gala

For the 1 year and 1 month Deposit at MasterCard Bank of the Year

Libra Internet Bank in figures 2018 Awards


LIBRA INTERNET BANK is a business that works well because it puts the right people in the right place.

With an average age of 28 years, Libra employees are those who manage to make the difference and to turn LIBRA INTERNET BANK into an important actor of the Romanian financial and banking market.

Launched in autumn of 2012, Libra Cultural aims to facilitate communication and networking within the bank's teams, by organizing workshops, courses and cultural activities.

In 2018, Libra Cultural activities included workshops on time management, painting, public speaking or laughter therapy. All of the approximately 150 “seats” available for these sessions were occupied.

The program promotes actions that facilitate communication and networking inside the team and offers the opportunity of discovering new skills.

of our colleagues work in IT10%

+10%70%

Libra CulturalPersonal and professional development program

Libra People Employee Programs

~

~of the colleagues holding managerial positions come from internal promotion

increase in the number of employees, in 2018


In 2018, the seventh edition of Libra Energize was organized. The novelty of this edition was that the events were expanded outside the country, in the Republic of Moldova, where the energizers celebrated the Great Union Centenary, by participating in the Chișinău Marathon.

Libra Energize is a competition in which teams made of bank employees compete in sports challenges such as: asphalt or mountain running, cycling, swimming, climbing, kayak, crossfit, archery, rally, etc.

Libra Energize really shows and proves what a team is all about. It is inspiration and challenge.

Libra Energize has determined almost 10% of the bank’s employees to enter the competition and train without a stop.

Libra EnergizeThe most loved sports competition for employees



At the start of last year’s edition, Libra Energize gathered a total of 60 participants, distributed into 15 teams. Thus, the cumulated number of participants, over the seven editions organized until 2018, is close to the “350 landmark”.

4.700km run

4.000km by bike

17.000km on the mountain



Because we are also competitive when it comes to the schedule, the benefits and the working environment.

In 2018, the employee benefits package was significantly expanded and improved.

In addition to the many financial advantages, Libra Internet Bank provides its employees with a working environment that facilitates learning and employee development.

The bank offers a flexible work schedule and organizes team integration actions.

Libra – an open employer Why is it cool to work at Libra?

The Banking Academy, a program dedicated to students and young people interested in a banking career, continued to be successful in 2018, during which 3 sessions were organized.

The Banking Academy is a paid training program, by which we offer to the new generations of graduates and/or master students the chance to take the first step in banking, alongside with Libra.

The program’s concept - "Learning by doing" .

For approximately 2 months, young people have the opportunity to learn from the bank’s specialists everything they need to know in order to achieve banking performance: selling and communication techniques, financial analysis or banking operations.

The Banking Academy


Valentin Miron,Training Coordinator, Banking Academy

We want the Banking Academy to be more than a step-in training future “bankers”. The learning process targets at the development of each individual, and the

knowledge acquired during these weeks are useful both at work and outside of it.

In a time when “reskilling” is increasingly used, the Banking Academy adapts learning to the characteristics of the generation it targets. Together we build the experience of knowledge.



Andreea,Marketing Division

Libra continued to organize internships for interested and motivated young people.

Through these internships, the Bank offers students the opportunity to become familiar with banking activities and with the specific interaction with customers, in real situations.

Those interested could apply for an internship, in departments such as IT, Marketing, HR, Processing Center, Credit Analysis or in the Bank’s branches.

Internship – each career begins with a first step

My adventure at Libra started when I was a last year student and I was thinking what could I do after graduation. Naturally, the answer came from Facebook ,

when a fellow student distributed an internship announcement that something like this: “each thing starts with a first time, each career starts with a first step.” This was the impulse I needed. Several very important first times followed for me: my first interview, during which I felt…like talking to a friend, my first day at work, my first and only internship, and my first full-time job. I decided to stay in Libra, with a smile on my face. Why? Because I can continue working with the internship team.

chose an internship at Libra Internet Bank in 201833 students



Business Directions Customer portfolio

For Libra Internet Bank, the year 2018 was both a year of growth, of creating customer loyalty and of consolidating the area of professionals. 14 years after approaching this niche segment, the Bank manages a stable portfolio, which has reached a level of maturity.

Professionals

Real Estate

37,90%Companies

29,20%

25 750 50 100

15,80%Professionals

14,20%Agribusiness

2,80% Retail

Number of Professional customers

2016 2017 2018

10.66%

18.66%

2016 2018

31.30%


The Professionals Online Loan offers customers up to Lei 200,000, without collaterals. It is provided 100% online, within maximum 8 hours after receiving the documents, while the “face to face” meeting takes place by video call, which ensures nationwide coverage. In this way, the product is made accessible to customers from cities where the Bank has no branches.

2018 figures, professionals:

more loans grantedcompared to 2017

more deposits compared to 2017

+18%+23% The first full year of the

Professionals Online Loan

1

Gina Matei,Manager, Professionals&Retail Banking Division

Customers know us and recommend us for our services which, given the attention we pay to the digital area, has allowed us to create a very fast and extremely easy

lending flow. The results in the online professionals segment were very good. We are still open to innovation and are close to our customers in order to offer them the best banking experience.

Business Directions Professionals


Mihai Popa,Manager, Agri Business Division

We are currently in the expansion phase. The fact that we have national coverage and that we have solutions for the entire range of agricultural needs has maintained Libra

Internet Bank as a top choice for the Romanian farmers. The bank is an excellent financing option for farmers, from providing the working capital to the purchase of land and equipment or farm takeovers.

Our specialists in agribusiness, as graduates of agricultural higher education, have continued to go straight to farmers and to attend dedicated fairs and exhibitions (e.g. Indagra, Agriplanta), where they presented real financing solutions.

Authentic by profession

In a market revolving around notoriety and good reputation, in 2018 Libra Internet Bank continued its growth in the agribusiness segment, with emphasis on large crop.

Business Directions Agribusiness


LIBRA INTERNET BANK has been supporting the residential segment since 2014, and it has financed several hundred projects since then, most of them in București, Cluj, Iași, Timișoara, Brașov and Sibiu. In 2018, 175 residential projects were financed.

Used for the development of residential real estate projects or for the full or partial purchase of residential real estate projects in various stages of execution, the Residential Projects Loan brings a series of important advantages, such as the possibility to use the money by construction phases or repayment upon selling the resulting residential units.

The best banking product in 2018: Residential Projects Loan

The Bank’s efforts to meet the needs of the Real Estate segment, with customized solutions and innovative products, were recognized at the 23rd edition of the “Piața Financiară Magazine Awards Gala”.

Andrei Gavriliță,Corporate Banking Division

In a real estate market where the demand-supply ratio has balanced, the consumers’ exigency rises rapidly and the emphasis is increasingly on the quality of

fixtures and locations, Libra continues its ascending trend and supports projects that best meet the needs of the final customer.

Business Directions Real Estate


Selcuk Senkaya,Manager, Large Corporate Division

We stand out in the market through our expertise in the Real Estate area. We know what the essential points in achieving a successful project are and what problems

may arise along the way. We have solutions for all situations, so as to complete the started investment. For the developer, it is important to have by its side a financer that understands its needs and offers support and alternatives for solving all challenges it faces. The fact that we analyze in detail each stage of the project represents added safety for all parties involved: financier, developer and final customer.

Business Directions Real Estate

Manuel Petronel Postolache,Manager, SME Division

The year 2018 was the year when the number of SME customers continued to grow at a rapid pace, which is why our sales force was significantly increased in order to

be able to respond to customers at the highest quality standards of banking services.

Business Directions SME Customers

* 201820172016

102,05% 88,83%

Number of SME Customers


Libra Internet Bank is a pioneer in implementing new technologies, as well as in the development of complete digital flows, which are easy to understand and use by customers.

Given that the traditional way of banking is changing, in 2018, the Bank managed to attract new customers and to strengthen its relationship with the existing ones.

Libra Internet Bank launched the online account with an exclusively online card order flow, with most card control options being accessible to the customer from internet banking.

Also, Libra is the first bank in Romania – and one of the first banks in Europe – to offer the rapid card to card transfer facility, directly or through intermediaries, ever since the end of 2017.

The Bank has continued to pay maximum attention to requests from its customers in order to provide them, each time, with prompt and professional answers.

WHAT WE BRING TO THE MARKET

Business Directions Cards

8


Libra Internet Bank provides its customers, individuals and legal entities, with two card products, a standard one and a premium one, with excellent value for money.

Launched in 2018, the Enjoy Card brings great benefits to Libra customers: travel insurance abroad, access at the Mastercard Business Lounge in the Otopeni Airport, discounts to Mastercard merchants, discounts or interest-free installments at Enjoy partners. Also, card issuance and delivery by courier in Romania are free.

SUCCESSFUL PRODUCTS

Radu Ioan Sabău,Manager, Cards Division

When I took over this activity, I planned to increase confidence in our products, to automate processes through business projects and to increase indicators. In 2018,

we did not deviate from the the course we had set ourselves. We launched the Enjoy program, we made the Visa Business cards contactless and brought the Visa Business Gold product to the market.

Moreover, in order to have more time dedicated to business and to reduce operational errors, we carried out numerous internal projects designed to increase the degree of automation.”

Business Directions Cards


Elena Ionescu,Manager, European Funds Division

Increasing the SMEs’ access to financing is an extremely important objective for the European Union and Libra is an active player in the area of accessing financing and

guarantee programs from European funds. This started in 2014 and was confirmed in 2018, by signing two more partnerships, with EBRD and EIF. We believe these programs are really useful to SMEs facing a lack of collaterals when they need loans. This lack is even more acute in the case of SMEs in the Cultural and Creative Industries Sector, a sector which contributes 7% to the GDP and represents an important driver for economic growth, for which we carry out a guarantee program from the European Investment Fund.

We are confident in the successful implementation of our first agreement with the European Bank for Reconstruction and Development, which represents a

continuation of our efforts to develop innovative and accessible financing products for our customers”, said Emil Bituleanu, General Manager of Libra Internet Bank, at the time of concluding the partnership

Considering that access to finance remains a major obstacle for the development of private business in Romania, in 2018, EBRD provided a loan of EUR 15 million to Libra Internet Bank, for the financing of micro, small and medium-sized enterprises, a key sector of the country’s economy in terms of development and creation of jobs.

European Bank for Reconstruction and Development

EBRDPartnerships with Financial Institutions


In 2018, EIF and Libra Internet Bank concluded the risk sharing financing agreement for agricultural and non-agricultural SMEs operating in the rural environment. The program is called Portfolio Risk Sharing Loan (PRSL) and is designed for businesses in the rural environment, which can access financing of up to Lei 2 million for investments and current activity. Those accessing the program benefit from 70% European financing and guarantee, with sources from the National Rural Development Program, without interest and guarantee fee for the 70% share. In Romania, there are only 5 banks that signed this agreement. The value of the loans to be included in the portfolio is of Lei 46,450,000.

European Investment Fund

To support local entrepreneurship, in 2018, Libra Internet Bank continued the series of free workshops "For the Entrepreneur in You", on the subject of financing through guarantee programs provided by the European Investment Fund (EIF).

EIFPartnerships with Financial Institutions

For the Enetrpreneur in You


In order to support the development of its customers through competitive financing, the Bank carries out, under a partnership concluded at the end of 2016, a guarantee program that is unique in Romania, offered by EIF to customers in the Cultural and Creative Industries Sector. The maximum amount that can be accessed is of Lei 2,000,000, 70 % being guaranteed through the CCS (Creative and Cultural Sector) Program.

In 2018, Libra Internet Bank partially funded the production of the movie “Donbass”, directed by the famous Sergei Loznitsa. The movie won the Directing Prize in the “Un Certain Regard” section of the Cannes International Film Festival.

The movie was the result of a a collaboration between several film production companies from Germany, Ukraine, France, Romania and the Netherlands.

Directing PRIZE”Un Certain Regard”

Partnerships with Financial Institutions Libra and the creative industries

Useful links

#FiiAici

ANNEXES: Financial Statements, ADMINISTRATORS’ REPORT

2018 Report Contents

#Anexe-EN

https://www.youtube.com/LibraInternetBank

https://www.facebook.com/LibraInternetBank

https://www.instagram.com/libra_internet_bank/

https://www.linkedin.com/company/libra-bank/

annual report 2018 - libra internet bank · 1 annual report 2018 the general manager’s message 2...

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