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Translated into English for information purposes
Banca Comerciala Romana Chisinau SA
Financial Statements
For the Year Ended 31 December 2011
Prepared in Accordance with National Accounting Standards
Banca Comerciala Romana Chisinau SA
FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes
CONTENT
Auditors’ report
Balance sheet 3
Income statement 4
Statement of changes in shareholders’ equity 5
Cash flow statement 6
Notes to the financial statements 7-42
Banca Comerciala Romana Chisinau SA
BALANCE SHEET
For the Year Ended 31 December 2011
Translated into English for information purposes 3
Note
2011 2010
MDL’000 MDL’000
ASSETS
Cash on hand 4 23,512 31,503
Current accounts and deposits with banks 5 44,152 190,165
Balances with National Bank 6 95,277 92,010
Overnight placements 7 67,973 77,726
Investment securities 8 288,327 190,525
Loans and receivables on financial leasing, net 9 636,064 533,246
Property and equipment 10 27,621 33,846
Accrued interest receivable 11 19,842 17,103
Other property 12 40,053 56,005
Other assets 13 23,332 6,810
Total assets 1,266,153 1,228,939
LIABILITIES
Non-interest bearing deposits
Individuals 13,598 8,152
Enterprises 143,989 106,655
Total non-interest bearing deposits 157,587 114,807
Interest bearing deposits
Banks 576,734 520,471
Individuals 143,641 137,645
Enterprises 115,560 210,916
Total interest bearing deposits 835,935 869,032
Total deposits 14 993,522 983,839
Subordinated loans 15 - 64,418
Accrued interest payable 16 4,992 3,751
Other liabilities 17 11,451 14,242
Provision for losses on conditional engagements 27 502 496
Total liabilities 1,010,467 1,066,746
SHAREHOLDERS’ EQUITY
Ordinary shares 18 627,580 562,750
Reserve capital 12,767 12,767
Retained earnings (384,661) (413,324)
Total shareholders’ equity 255,686 162,193
Total liabilities and shareholders’ equity 1,266,153 1,228,939
The accompanying notes are an integral part of these financial statements.
The financial statements were authorized for issue on 30 March 2012 by the Executives of the Bank represented
by:
President Chief Accountant
Sorin Andrei Nina Schendrea
Banca Comerciala Romana Chisinau SA
INCOME STATEMENT
For the Year Ended 31 December 2011
Translated into English for information purposes 4
Note 2011 2010
MDL’000 MDL’000
Interest income
Interest income on loans to banks 3,195 1,640
Interest income on overnights 1,726 1,163
Interest income on investment securities 17,901 21,156
Interest income on loans to consumers 76,606 79,826
99,428 103,785
Interest expense
Interest expense on deposits from banks (13,377) (22,838)
Interest expense on deposits from individuals (9,462) (8,096)
Interest expense on deposits from enterprises (17,569) (19,501)
Interest expense on overnights (4) -
Interest expense on other borrowings (11,905) (10,022)
(52,317) (60,457)
Net interest income 47,111 43,328
Less: Loss from impairment on interest bearing assets 9 46,068 (178,692)
Net interest income, less impairment on asset losses
93,179 (135,364)
Non-interest income
Income from FX transactions 21 17,030 11,936
Commission income 22 12,522 9,524
Other non-interest income 23 2,651 2,744
32,203 24,204
Non-interest expenses
Salary (22,991) (23,515)
Bonuses (3,426) -
Social insurance contributions (7,919) (7,299)
Expenses related to fixed assets, taxes and fees 24 (22,125) (18,062)
Audit and consulting (1,456) (1,299)
Other non-interest expenses
25
(37,533) (24,820)
Allowances for losses on non-interest bearing assets 9 (1,258) (5,969)
Allowances on conditional engagements 27 (6) 1,210
(96,714) (79,754)
Operating profit before tax 28,668 (190,914)
Income tax 19 (5) (58)
Net profit/(loss) for the year 28,663 (190,972)
The accompanying notes are an integral part of these financial statements.
The financial statements were authorized for issue on 30 March 2012 by the Executives of the Bank represented
by:
President Chief Accountant
Sorin Andrei Nina Schendrea
Banca Comerciala Romana Chisinau SA
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
For the Year Ended 31 December 2011
Translated into English for information purposes 5
Note 2011 2010
MDL’000 MDL’000
Share capital
Balance as at 1 January 562,750 342,750
Ordinary shares 64,830 220,000
Balance as at 31 December 18 627,580 562,750
Reserve capital
Balance as at 1 January 12,767 12,767
Transfers between reserves - -
Balance as at 31 December 12,767 12,767
Retained earnings
Balance as at 1 January (413,324) (222,352)
Net profit for the year 28,663 (190,972)
Allocations to reserve capital - -
Balance as at 31 December (384,661) (413,324)
Total shareholders’ equity 255,686 162,193
The accompanying notes are an integral part of these financial statements.
Banca Comerciala Romana Chisinau SA
CASH FLOW STATEMENT
For the Year Ended 31 December 2011
Translated into English for information purposes 6
The accompanying notes are an integral part of these financial statements.
Note 2011 2010
MDL’000 MDL’000
Cash flows from operating activities
Interest and commissions proceeds 60,539 73,058
Interest and commissions payments (51,513) (61,166)
Proceeds from assets previously written off 61,521 27,189
Other income 17,302 14,253
Staff costs paid (31,625) (30,805)
Payments to suppliers (43,780) (24,330)
Operating profit before working capital changes 12,444 (1,801)
(Increase) / decrease in operating assets:
Placements in banks 100,331 (61,622)
Placements in NBM 7,871 70,676
Loans to customers (28,698) 123,164
Other assets (957) 7,197
Increase / (decrease) in operating liabilities
Due to banks 21,807 (989,039)
Due to customers (46,580) 230,311
Other liabilities (6,569) 11,369
Net cash flow from operating activities before income tax 59,649 (609,745)
- -
Income tax payments - -
Net cash from operating activities 59,649 (609,745)
Cash flows from investing activities
Loans to customers (63,057) (54,851)
Changes in investment securities (60,826) 27,934
Payments for tangible assets (2,388) (15,430)
Payments for intangible assets (842) (164)
Interest proceeds/payments 48,671 47,752
Net cash used in investing activities (78,442) 5,241
Cash flows from financing activities - 163,305
Cash proceeds from the own shares issue 34,455 (7,649)
Proceeds/(payments) for long-term loans and borrowings (4,106) -
Net cash from financing activities 30,349 155,656
Unrealized foreign exchange loss 2,367 (1,329)
Net increase/decrease in cash and cash equivalents 13,923 (450,177)
Balance as at 1 January 257,044 707,221
Balance as at 31 December 20 270,967 257,044
Banca Comerciala Romana Chisinau SA
NOTES TO FINANCIAL STATEMENT
For the Year Ended 31 December 2011
Translated into English for information purposes 7
1. Corporate information
Banca Comercială Romana Chisinau SA (hereinafter the Bank) was established in October 1998. The Bank
activates as a commercial and savings Bank, offering a large spectrum of services and banking products for all
client categories through Front Office, two branches in Chisinau and one branch in Balti, and one representative
office placed in Chisinau (2010: 2 branch and 2 representative offices).
At year-end 2011 the Bank possessed the license number A MMII nr. 004471, granted by the National Bank of
Moldova at 02 December 2008, which allows the Bank to be engaged in all banking activities stipulated in
article 26 of Law of financial institutions nr.550 – XIII from 21 July 1995.
The Bank has 143 employees as at 31 December 2011 (140 as at 31 December 2010).
The registered office of the Bank is located at 60/2 Puskin Street, Chisinau, Republic of Moldova.
As the Bank’s operations do not have significantly different risks and returns and the regulatory environment,
the nature of its services, the business process, as well as the types of customers for the products and services
and the methods used to provide the services are homogenous for all Bank’s activities, the Bank operates as a
single business segment unit.
2. Basis of presentation
The financial year starts on 1 January and ends on 31 December, and includes all operations performed by the
Bank during this period.
All the effective indices related to Bank’s activity and which reflect Bank’s financial and economical results of
the activities performed during the financial year are included and reflected in the financial statements of the
financial year.
The financial statements are presented in Moldovan lei (“MDL”), the currency of the country in which the Bank
operates. Financial statements are prepared under the historic cost convention, modified after revaluation of
financial assets and liabilities.
3. Significant accounting policies
a. Basis of accounting
These stand alone financial statements are prepared in conformity with National Accounting Standards (NAS)
issued by the Ministry of Finance and reporting regulations set by the National Bank of Moldova.
b. Foreign currency translation
Foreign currency transactions are recorded at the rate of exchange on the date of the transaction. At the balance
sheet date, monetary assets and liabilities denominated in foreign currencies are reported using the closing
exchange rate.
The year end and average rates for the period were:
2011 2010
USD Euro USD Euro
Average for the period 11.7370 16.3369 12.3663 16.3369
Year end 11.7154 15.0737 12.1539 15.0737
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 8
3. Significant accounting policies (continued)
b. Foreign currency translation (continued)
Exchange differences arising on the settlement of the transactions at rates different from those at the date of the
transaction, and unrealized foreign exchange differences on unsettled foreign currency monetary assets and
liabilities are recognized in the income statement.
c. Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents comprise cash on hand, current accounts
and short-term placements at other banks, treasury bills and other short – term highly liquid investments, with
less than 90 days maturity from the date of acquisition.
d. Income and expenses recognition
Interest income and expenses, other operating income and expenses are recognized in the income statement on
an accrual basis in accordance with NAS.
Uncollected interest on investment state securities is calculated for the period between the date of acquisition and
the balance sheet date at respective interest rates for each issue. State securities are purchased at nominal value
less interest which will be realized at maturity.
Interest expense includes interest for deposits, current accounts, Loro accounts, as well as interest on
borrowings.
e. Property and equipment
Property and equipment are initially recognized at acquisition cost. After initial recognition they are stated at
cost or revaluation value according to the Decision of the Government of the Republic of Moldova, less
accumulated depreciation.
Expenses for repairs and maintenance are charged to operating expenses as incurred. Subsequent expenditure on
property and equipment is only recognized as an asset when the expenditures improves the condition of the asset
beyond the originally assessed standard of performance.
Depreciation is computed on a straight-line basis over the estimated useful life of the asset, as stated below:
Fixed assets Rate (%)
Buildings 3%
Furniture and equipment 20-33%
Vehicles 20%
Fixed assets with a purchase value over MDL 3,000 and with a life period of more than one year are capitalized.
Fixed assets with an acquisition cost less than MDL 3,000 are recognized as expenses starting with January
2007.
Balance sheet value of the assets is assessed at each balance sheet date for impairment, if such indicators exist
recoverable amounts of assets are estimated and impairment losses are presented in the income statement.
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 9
3. Significant accounting policies (continued)
f. Intangibles
Intangible assets are accounted at cost less accumulated depreciation. Subsequent expenses are capitalized, when
it will increase the useful life or the future economic benefits inflow associated with these assets. Other
expenditures are expensed as incurred.
Amortization is calculated using the straight line method according to the useful life of intangible assets. The
approved amortization rates are presented below:
Intangible assets Rate (%)
Licenses 10-20%
Software 20-100%
g. Loans to customers and provision for loan losses
Loans are stated at nominal value, less provision for loan losses.
Provisions for loan losses are established at the yearend based on the valuation of loan portfolio and do not
include provisions on accrued interest. According to the regulations issued by the National Bank of Moldova,
overdue interest of more than 60 days is expensed and registered on off-balance sheet accounts.
Provisions for loan losses are accounted as expenses in profit and loss accounts.
When a loan cannot be recovered and all legal procedures were performed, the value of the uncollectible loan is
deducted from the provision for loan losses and from total loans.
Provisions for loan losses are set depending on the category of the loan in accordance with the methodology
established by the National Bank of Moldova. Loans classification takes into account both debt service history as
well as the financial state and financial performance of the debtor. Methodology for provision evaluation does
not take into consideration pledge value, while the validity and sufficiency of pledge influence credit
classification.
Loans issued by the Bank are classified into five categories, the amount of the loan loss provision is calculated
applying the following quotes to the balance of loans for each classification category:
Loan category Rate (%)
Standard 2%
Supervised 5%
Sub-standard 30%
Doubtful 60%
Compromised 100%
Other provisions are calculated to cover the risks, which are attributable to any portfolio of assets held by the
Bank without being specifically identified.
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 10
3. Significant accounting policies (continued)
h. REPO Agreements
Securities purchased under REPO agreements are stated as loans or prepayments to clients or other banks. The
gap between purchase and sale prices is treated as interest and is recognized during the whole agreement period.
i. Held for trading securities
Trading securities are financial assets, which were either acquired for generating a profit from short term
fluctuations in price or dealer’s margin. Such securities are recorded at initial acquisition price. Gain or losses as
a result of modifications in fair market value are charged to the income statement.
j. State investment securities
All investments in state securities are initially recorded at cost.
Investment state securities purchased with a discount are subsequently measured at amortized cost applying
straight line method.
Investments in state securities purchased at nominal value with coupon attached are subsequently measured at
the lower of cost and fair value.
Interest income on investment state securities is stated as interest income.
k. Assets retained into possession
Assets retained into possession are registered on the balance sheet and off-balance sheet at the lowest cost
between the receivables amount and fair value of the asset. Assets retained into possession and not realised
during 18 months from the registration date are written-off.
l. Offsetting financial assets and liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally
enforceable right to set off the recognized amounts and there is an intention to settle or realize on a net basis.
m. Pension costs and employees’ benefits
The Bank makes contributions to the pension fund set up by the Republic of Moldova, health care and
unemployment benefits calculated on salaries of Bank’s employees. The Bank does not operate any other
retirement plan and has no obligation to provide further benefits to current or former employees.
n. Deposits and amounts due to banks and customers
Deposits and amounts due to banks and customers are accounted at nominal value that is at effective amounts to
be reimbursed.
o. Related parties
Parties are considered to be related if one party has the ability to control the other party or exercise significant
influence over the other party in making financial and operating decisions.
Related party transaction represents a transfer of resources or obligations between related parties, regardless of
whether a price is charged.
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 11
3. Significant accounting policies (continued)
p. Taxation
Calculation of the income tax starts from the financial result of the year, corrected by the deductible and non-
deductible elements, for which the tax rate is applied at the date of balance sheet conclusion.
Deferred income tax is provided, for all such temporary differences arising between the tax base of assets and
liabilities and their carrying values for financial reporting purposes.
According to the fiscal legislation the income tax for the legal entities for 2011 constituted 0% (2010 – 0%).
q. Use of estimates
The preparation of financial statements in accordance with National Accounting Standards requires management
to make estimates and assumptions that affect the amounts and balances reported in the financial statements and
accompanying notes. These estimates are based on information available as of the date of the financial
statements. Actual results, therefore, could differ from those estimates. The estimates are periodically reviewed
and the changes are recorded when they become known.
r. Events subsequent to the balance sheet date
Subsequent events to the balance sheet date are disclosed in the financial statements if they provide additional
information about the Bank’s position at the balance sheet date (adjusting events) or indicate that the going
concern assumption is not appropriate. Subsequent events to the balance sheet date that are not adjusting events
are disclosed in the notes when material.
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 12
4. Cash on hand
2011 2010
MDL’000 MDL’000
Cash 14,016 24,985
Cash in ATMs 9,492 6,517
Other 4 1
23,512 31,503
5. Current accounts and deposits with banks
2011 2010
MDL’000 MDL’000
Current accounts 10,268 38,533
Deposits 34,826 152,230
Less: provision for impairments (942) (598)
44,152 190,165
Beginning with the 4th quarter of 2007, according to the NBM regulation on “Assets and contingent
commitments classification and the establishment of provisions for impairment losses”, the Bank recorded a
provision in total amount of MDL’000 942 (2010: MDL’000 598) on Nostro accounts and placements abroad
according to the countries or banks rating not higher than A.
The movements in provision for impairment are presented below for 2011 and 2010:
2011 2010
Note MDL’000 MDL’000
Balance as at 1 January 598 1,450
Write offs - -
Recoveries - -
Annual expense 9 5,068 (827)
Exchange rate differences (4,724) (25)
Balance as at 31 December 942 598
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 13
6. Balances with National Bank of Moldova
2011 2010
MDL’000 MDL’000
Current accounts 47,144 25,007
Compulsory reserves 48,133 56,003
Overnight placements with NBM - 11,000
95,277 92,010
Current account and compulsory reserves
The National Bank of Moldova (NBM) requires commercial banks to maintain for liquidity purposes minimum
reserves calculated at a certain rate of the average funds borrowed by banks during the previous month (period
between the date of 8 of the previous month and 7 of current month) including all customer deposits. Based on
the decision Nr. 85 of the Administrative Council of NBM dated 15 April 2004, the method for calculation and
maintaining the obligatory reserves changed. Funds attracted in Moldovan Lei (MDL) as well as non-convertible
currencies are reserved in MDL. Funds attracted in convertible currencies are reserved in US Dollars (USD)
and/or EURO (EUR). As of 31 December 2011 the rate for calculation of the minimum obligatory reserve in all
currencies was 14% (31 December 2010: 8%).
The Bank maintains its compulsory reserves on a current account opened with the NBM in amount of 14% of
funds attracted in Moldovan Lei and non-convertible currencies. 14% reserves on funds denominated in USD
and EUR are held in a special obligatory reserve account with NBM.
The minimum average balance for the period 8 December 2011 – 7 January 2012 was calculated in amount of
MDL’000 37,453 (31 December 2010: MDL’000 25,733). This balance included compulsory reserve on funds
attracted in Moldovan Lei and non-convertible currencies. The balance reserved on USD and EUR compulsory
reserve accounts amounted to USD’000 1,441 and EUR’000 2,145 respectively (31 December 2010 – USD’000
2,154 and EUR’000 1,894).
The interest received from by NBM on the compulsory reserves during 2011 varied between 0.09% and 0.15%
per annum for reserves in foreign currency and between 4.81 % and 6.83 % for reserves in MDL (2010: between
0.15% and 0.39% p. a. in FCY and between 2% and 4.81% in MDL). Starting with period between 8 July – 7
August 2011 for attracted funds with maturity over 2 years will apply “0” percent compulsory reserve.
The compulsory reserves held in the current account at NBM are available for use in the Bank’s day to day
operations.
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 14
7. Overnight placements
2011 2010
MDL’000 MDL’000
CITIBANK - 12,154
UNICREDIT BANK, MOSCOW - 7,996
ERSTE GROUP BANK AG 67,973 57,976
Minus: Reduceri pentru pierdere a valorii - (400)
67,973 77,726
Beginning with the 4th quarter of 2007, according to the NBM regulation on “Assets and contingent
commitments classification and the establishment of provisions for impairment losses”, the Bank recorded a
provision for overnight placements in total amount of MDL’000 zero (2010: MDL’000 400 ) on Nostro accounts
and placements abroad according to the countries or banks rating not higher than A.
The movements in provision for impairment of overnight placements account during 2011 and 2010 are
represented as following:
2011 2010
Note MDL’000 MDL’000
Balance as at 1 January 400 -
Write-off (400)
Annual expenses 9 - 400
Balance as at 31 December - 400
8. Investment securities
2011 2010
MDL’000 MDL’000
Certificates issued by the NBM 95,000 30,000
State securities 199,021 117,054
Pledged securities - 45,122
Less: Discount on investment securities (6,692) (2,649)
287,329 189,527
Shares in SRL „Biroul de Credit” 1,018 1,018
Less: Provision for impairment (20) (20)
998 998
288,327 190,525
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 15
8. Investment securities (continued)
Investments in state securities as at 31 December 2011 represent MDL treasury bonds and treasury bills of 91 to
731 days maturity issued by the Ministry of Finance of the Republic of Moldova with an interest rate between
8.22% and 14.02% p.a. Certificates issued by the National Bank of Moldova are of 14 days maturity with an
interest rate of 9.50% p.a.
Investments in state securities as at 31 December 2010 represent MDL treasury bills of 90 to 731 days maturity
issued by the Ministry of Finance of the Republic of Moldova with an interest rate between 5.29% and 9.32%
p.a. Certificates issued by the National Bank of Moldova are of 6 and 7 days maturity with an interest rate of 7%
p.a.
Investments in shares are presented below:
2011
Area of activity Shareholding MDL’000
SRL „Biroul de Credit” Credit history services 6.70% 1,018
1,018
The movements in provision for impairment of investment securities account during 2011 and 2010 are
represented as following:
2011 2010
Nota MDL’000 MDL’000
Balance as at 1 January 20 20
Write-offs - -
Annual expenses 9 - -
Balance as at 31 December 20 20
9 Loans and receivables on financial leasing, net
2011 2010
MDL’000 MDL’000
Loans 666,137 617,106
Receivables on financial leasing - -
Less: Provision for impairment (30,073) (83,860)
636,064 533,246
As at 31 December 2011 the gross loan portfolio includes overdue instalments in amount of MDL’000 82,968
(2010: MDL’000 159,978). Unrecognized interest relating to such loans amounted to MDL’000 8,426 (2010:
MDL’000 16,545).
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 16
9. Loans and receivables on financial leasing, net (continued)
According to the original maturity, loans are divided as following:
2011 2010
MDL’000 MDL’000
Up to one year 102,778 192,933
From one up to five years 257,096 217,890
Over five years 267,789 91,378
Undefined maturity 38,474 114,905
666,137 617,106
Loan portfolio analysis by industries is presented below:
2011 2010
MDL’000 MDL’000
Agricultural and food industry 149,795 38,980
Industry and commerce 212,202 345,406
Energetic sector - 2,187
Construction and acquisition of real estate 28,036 35,216
Consumer loans 104,126 82,930
Transportation and roads construction 58,877 64,535
Banks 29,289 -
Other 83,812 47,852
666,137 617,106
The average interest rate for the year on loans granted in MDL is 15.24% (2010: 18.95%), in USD 7.95% (2010:
10.42%) and in EUR 8.06% (2010: 10.52%).
The movements in provision for loan losses during the years 2011 and 2010 are presented below:
2011 2010
MDL’000 MDL’000
Balance as at 1 January 83,860 452,251
Write-offs (62,011) (573,738)
Recoveries 61,517 27,185
Annual expenses (51,136) 179,119
Foreign exchange differences (2,157) (957)
Balance as at 31 December 30,073 83,860
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 17
9. Loans and receivables on financial leasing, net (continued)
The annual charge for provision for loans and other interest-bearing assets losses is presented below:
Note 2011 2010
MDL’000 MDL’000
Annual charge, loans 9 (51,136) 179,119
Annual charge, other assets 5 5,068 (827)
Annual charge, overnight placements 7 - 400
Total charge for loans and other
interest-bearing assets losses (46,068) 178,692
Annual charge, investments 8 - -
Annual charge, other assets 13 1,258 5,969
Total charge for non interest-bearing
assets losses
1,258 5,969
Total (44,810) 184,661
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 18
10. Property and equipment
Land and
buildings
Furniture and
equipment Motor vehicles
Improvements of
leased assets
Assets under
construction
Total
MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000
Cost
Balance as at 1 January 2011 2,837 33,335 1,332 9,167 1,305 47,976
Additions - 1,939 - 781 435 3,155
Transfers - 1,148 - - (1,148) -
Disposals - (1,248) - - (28) (1,276)
Balance as at 31 December 2011 2,837 35,174 1,332 9,948 564 49,855
Accumulated depreciation
Balance as at 1 January 2011 249 12,185 804 892 - 14,130
Annual charge 63 6,176 190 2,114 - 8,543
Disposals - (439) - - - (439)
Balance as at 31 December 2011 312 17,922 994 3,006 - 22,234
Net book value
At 31 December 2011 2,525 17,252 338 6,942 564 27,621
At 31 December 2010 2,588 21,150 528 8,275 1,305 33,846
As at 31 December 2011 the cost of fully depreciated property and equipment used by the Bank amounted at MDL’000 4,333 (as at 31 December 2010 – MDL’000 3,217).
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 19
10. Property and equipment (continued)
Land and
buildings
Furniture and
equipment Motor vehicles
Improvements of
leased assets
Assets under
construction
Total
MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000
Cost
Balance as at 1 January 2010 3,294 18,203 1,482 3,476 2,244 28,699
Additions - 1,313 105 5,691 13,288 20,397
Transfers - 13,949 - - (13,949) -
Disposals (457) (130) (255) - (278) (1,120)
Balance as at 31 December 2010 2,837 33,335 1,332 9,167 1,305 47,976
Accumulated depreciation
Balance as at 1 January 2010 282 7,522 723 - - 8,527
Annual charge 66 4,775 195 892 - 5,928
Disposals (99) (112) (114) - - (325)
Balance as at 31 December 2010 249 12,185 804 892 - 14,130
Net book value
At 31 December 2010 2,588 21,150 528 8,275 1,305 33,846
At 31 December 2009 3,012 10,681 759 3,476 2,244 20,172
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 20
11. Accrued interest receivable
2011 2010
MDL’000 MDL’000
Current accounts and deposits with banks 424 21
Investment state securities 97 51
Loans and advances to customers 19,140 17,030
Others 181 1
19,842 17,103
12. Other property
2011 2010
MDL’000 MDL’000
Moldconinvest SRL 25,575 28,083
XAN SRL - 17,930
MCI&Co Construct 2,491 9,842
SC RG - AGRO PLUS SRL 10,805 -
Meridian SRL 842 -
Gesta SRL 340 -
Alte - 150
40,053 56,005
13. Other assets
2011 2010
MDL’000 MDL’000
Intangible assets, net 3,272 3,332
Repossessed assets - 92
Inventory 641 93
Receivables on capital investments 1,041 533
Operations with bank cards 1,364 510
Settlements through payment systems 26 39
Other prepaid expenses 679 213
Other assets 17,215 2,165
24,238 6,977
Less: provision for impairments (906) (167)
Balance as at 31 December 23,332 6,810
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 21
13. Other assets (continued)
In other assets are included: receivables on real estate taken into possession from XAN SRL in amount of
MDL’000 12,699 by I.M. MANAGEMENT REAL ESTATE SRL and receivable on an overdue loan to be paid
by Hezyon SRL in amount of MDL’000 2,156.
Movements in provision for impairment of assets during 2011 and 2010 are presented below:
2011 2010
Note MDL’000 MDL’000
Balance as at 1 January 167 262
Write-offs (523) (6,068)
Recoveries 4 4
Annual expenses 9 1,258 5,969
Balance as at 31 December 906 167
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 22
13. Other assets (continued)
Intangible assets
Movement in intangible assets during the year ended 31 December 2011 is presented in the table below:
Software Other
intangible assets
Intangible assets
in progress
Total
Cost MDL’000 MDL’000 MDL’000 MDL’000
Balance as at 1 January 2011 4,668 1,881 147 6,696
Additions 10 259 575 844
Transfers - - - -
Disposals - - - -
Balance as at 31 December 2011 4,678 2,140 722 7,540
Accumulated amortization
Balance as at 1 January 2011 2,261 1,103 - 3,364
Annual charge 717 187 - 904
Disposals - - - -
Balance as at 31 December 2011 2,978 1,290 - 4,268
Net book value
As at 31 December 2011 1,700 850 722 3,272
As at 31 December 2010 2,407 778 147 3,332
Movement in intangible assets during the year ended 31 December 2010 is presented in the table below:
Software Other
intangible assets
Intangible assets
in progress
Total
Cost MDL’000 MDL’000 MDL’000 MDL’000
Balance as at 1 January 2010 3,889 1,880 762 6,531
Additions 105 1 832 938
Transfers 1,357 - (1,357) -
Disposals (683) - (90) (773)
Balance as at 31 December 2010 4,668 1,881 147 6,696
Accumulated amortization
Balance as at 1 January 2010 1,897 1,103 - 3,000
Annual charge 782 - - 782
Disposals (418) - - (418)
Balance as at 31 December 2010 2,261 1,103 - 3,364
Net book value
As at 31 December 2010 2,407 778 147 3,332
As at 31 December 2009 1,992 777 762 3,531
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 23
14. Deposits
2011 2010
MDL’000 MDL’000
Due to banks
Current accounts 23,288 30,944
Term deposits 553,446 489,527
576,734 520,471
Due to individuals
Current accounts 33,498 19,243
Term deposits 123,741 126,554
157,239 145,797
Due to enterprises
Current accounts 180,511 150,256
Term deposits 79,038 167,315
259,549 317,571
993,522 983,839
As at 31 December 2011 current accounts of legal entities include restricted deposits through collateral
agreements in total amount of MDL’000 2,118 (31 December 2010: MDL’000 3,198).
The annual interest rates paid by the Bank for the MDL and FCY deposits of individuals and companies ranged
as follows:
2011 2010
MDL FCY MDL FCY
% % % % % % % %
Legal entities
Demand deposits 2.16 - 10.75 0.10 - 1.21 2.39 - 7.79 0.20 - 2.21
Term deposits up to 3 months 1.66 - 4.00 1.00 - 1.75 1.76 - 10.49 0.08 - 3.50
Term deposits >3 months < 1 year 7.50 - 10.50 2.58 - 4.30 5.63 - 15.00 2.75 - 5.73
Term deposits over 1 year 1.80 - 1.80 4.50 - 4.50 2.40 - 11.50 - - -
Individuals
Demand deposits 2.66 - 3.52 1.00 - 1.00 3.07 - 5.11 1.00 - 1.00
Term deposits up to 3 months 2.75 - 4.50 1.48 - 2.00 3.00 - 10.47 1.50 - 2.89
Term deposits >3 months < 1 year 7.27 - 12.32 2.60 - 4.48 7.86 - 14.81 3.00 - 6.46
Term deposits over 1 year 10.5
0
- 11.00 4.25 - 4.50 11.00 - 16.00 4.50 - 7.32
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 24
15. Subordinated loans
2011 2010
MDL’000 MDL’000
BCR Romania - 64,418
- 64,418
In November 2011 the subordinated loan was converted in statutory capital.
16. Accrued interest payable
2011 2010
MDL’000 MDL’000
Interest bearing deposits from banks 3,463 1,821
Interest bearing deposits from individuals 838 1,073
Interest bearing deposits from enterprises 691 745
Subordinated loan - 112
4,992 3,751
17. Other liabilities
Nota 2011 2010
MDL’000 MDL’000
Items pending instructions from customers 28 226
Non-processed transfers to client accounts 19 10
Income tax liabilities 202 328
Deferred tax liability 19 - -
Income tax exemptions 4,312 11,357
Provisions for unused vacations 938 880
Provisions for audit costs 1,269 328
Other provisions 2,794 118
Other liabilities 1,889 995
11,451 14,242
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 25
18. Share capital
As at 31 December 2011 share capital constituted 62,758 ordinary authorized shares issued in circulation with
the nominal value of MDL 10,000 (2010: 56,275 shares).
Structure of Bank shareholders
2011 2010
Name of shareholder Shareholding Shareholding
MDL’000 % MDL’000 %
Banca Comerciala Romana S.A. 627,580 100% 562,750 100%
Total 627,580 100% 562,750 100%
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 26
19. Taxation
2011 2010
MDL’000 MDL’000
Current income tax expenses
Current income tax expenses 5 58
Deferred income tax
Related to origination and reversal of temporary
differences - -
Income from previous year exemption - -
Income tax expenses for the period 5 58
The standard income tax rate in 2011 was 0% (2010: 0%). The reconciliation between income tax expense
reflected in the financial statements and the amounts calculated at the standard tax rate of 0% (2010: 0%) is as
follows:
2011 2010
MDL’000 MDL’000
Accounting profit before tax 28,668 (190,214)
At Moldovan statutory income tax rate of 0% (2010 –
0%)
- -
Fiscal effect of permanent and temporary differences - -
Effects of reversal and origination of temporary
differences - -
Excess of charity expenses 5 58
At effective income tax rate of 0% (2010– 0.0%) 5 58
Deferred income tax was calculated by applying the 2011 income tax rate of 0% (2010: 0%).
2011 2010
MDL’000 MDL’000
Balance as at 1 January - -
Income tax charges - -
Balance as at 31 December - -
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 27
20. Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents comprise the following balances with less
than 90 days maturity:
Note 2011 2010
MDL’000 MDL’000
Cash on hand 4 23,512 31,503
Due to banks 5 22,486 38,533
Balances with National Bank 6 47,144 36,007
Overnight placements 7 67,973 78,126
Short-term investments 109,852 72,875
(with less than 90 days maturity)
270,967 257,044
21. Income/(loss) from FX transactions
2011 2010
MDL’000 MDL’000
Exchange offices 4,443 1,316
Dealing transactions 10,215 11,949
Net foreign currency translation gain/loss 2,367 (1,329)
Net gain/loss from selling precious metals 5 -
17,030 11,936
22. Commission income
2011 2010
MDL’000 MDL’000
Commission on clients’ accounts servicing 9,596 7,227
Commissions on guarantees issued 1,537 1,111
Commission on sale/purchase of foreign
currency - 12
Other bank commissions 1,389 1,174
12,522 9,524
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 28
23. Other non-interest income
2011 2010
MDL’000 MDL’000
Fees, penalties and other received sanctions 2,191 590
Revenues from disposal of long-term FA - 1,756
Other operational income 460 398
2,651 2,744
24. Expenses related to property and equipment taxes and fees
2011 2010
MDL’000 MDL’000
Depreciation 8,543 5,928
Repairs and maintenance 1,985 997
Safeguarding of assets and insurance costs 1,442 861
Utilities and rent 8,309 8,944
Taxes and fees 1,403 949
Other 443 383
22,125 18,062
25. Other non-interest expenses
2011 2010
MDL’000 MDL’000
Commissions on bank deposits 4,734 2,562
Postage and telecommunication expenses 1,787 1,774
Amortization of intangible assets 904 782
Maintenance for intangible assets 1,422 1,149
Training costs 196 178
Travel 821 628
Expenses with office supplies 475 383
Transportation 4 325
Advertising and charity expenses 3,449 1,284
Contributions to Deposit Guarantee Fund 103 75
Expenses with cards processing centre 1,551 1,644
Legal expenses 3,322 1,529
Other assets disposal 3,244 9,866
Risk insurance premium 11,996 143
Other expenses 3,525 2,498
Total 37,533 24,820
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 29
26. Earnings per share
Issued ordinary shares Profit for the year Income per share
MDL’000 MDL’000
As of 31 December 2011 62,758 28,663 0.46
As of 31 December 2010 56,275 (190,972) (3.40)
27. Guarantees and other financial commitments
The aggregate amounts of outstanding guarantees, commitments, and other off balance sheet items as of 31
December 2011 and 2010 are:
2011 2010
MDL’000 MDL’000
Letters of credit - -
Guarantees 39,884 45,487
Financing commitments and other 27,012 17,325
66,896 62,812
Less: Provision for impairment losses on off-
balance sheet commitments
(502) (496)
66,394 62,316
Financing commitments do not necessarily represent future cash requirements, since many of these commitments
will expire or terminate without being funded.
Movements in provisions for impairment losses during 2011 and 2010 are presented below:
2011 2010
MDL’000 MDL’000
Balance as at 1 January 496 1,706
Write-offs - -
Recoveries - -
Annual expenses 6 (1,210)
Balance as at 31 December 502 496
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 30
28. Related parties
During the year, a number of banking and non-banking transactions were entered into with related parties in the normal course of business. These include loans granting, deposit
taking, trade finance, payment settlement, foreign currency transactions and acquisition of services and goods from related parties. Loans to employees were granted at market
rates.
Below are presented the balances and transactions with related parties during the current year:
Affiliated party Nostro acc.
and
placements
in banks
Provisions
for due
from
banks
Loans
outstan-
ding at the
year end
Loan loss
provision
Deposits at
the year
end
Subor-
dinated
loans
Interest and
commission
income
Interest and
commission
expenses
Non-interest
expenses /costs
MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000
Shareholders (BCR) and
their related parties 2011
71,365 (661) - - 461,521 - 353 20,418 13,039
Shareholders (BCR) and
their related parties 2010
179,848 (501) - - 489,730 64,418 452 30,126 2,708
Bank administrators
members of credit
committee (CC) and their
related parties
2011
- - 3,507 (208) 466 - 345 69 9,212
Bank administrators
members of CC and their
related parties
2010
- - 194 (4) 177 - 42 32 8,287
Total 2011 71,365 (661) 3,507 (208) 461,987 - 698 20,487 22,251
Total 2010 179,848 (501) 194 (4) 489,907 64,418 494 30,158 10,995
Directors’ remuneration
The executive management received remuneration totalling MDL’000 6,310 (2010 – MDL’000 5,018). The non-executive members of the Bank Council received fees totalling
MDL’000 614 (2010 – MDL’000 617).
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 31
29. Fair value and Risk Management
Fair value
Fair value is the amount at which an asset or liability could be exchanged in a arms-length transaction between
willing parties and is best evidenced by a quoted market price.
The value of short term client deposits, deposits from other banks and liabilities is close to the real value due to
short maturity terms and insignificant transaction costs.
Term deposits, loans and prepayments granted to clients, guarantees and letters of credit are registered at net
value due to general and specific provisions. The value is considered to be similar to the real one because the
respective instruments are bearing the market interest rate, except the loans granted under loan agreements with
different government institutions which bear lower rates than those on the market. Still, the maturity and interest
rates for these loans are compensated with financing obligation. As a consequence, each alteration in the real
value of financial assets leads to interest modification and thus to commitments towards real value of financial
assets for which a different interest rate is applied.
Financial investments represent the participations in unlisted companies for which there is no market.
Nevertheless, the management considers that their accounting value does not differ significantly from their real
value.
Currency risk
Currency risk is the risk of loss resulting from changes in exchange rates.
The foreign currency breakdown of the Bank’s assets and liabilities is presented in the note 32 and the sensitivity
analysis of Bank’s exposure to currency risk is presented in note 33.
Interest rate risk
Interest rate risk is the risk of losses resulting from changes in interest rates on the market. Interest rate risk
consists of the fluctuation risk in the value of a financial instrument as a result of variation in interest rates on the
inter-bank market and the GAP risk between maturities for interest bearing assets and liabilities. Interest rate
fluctuations can affect Bank’s profit, economic value of assets, liabilities and off-balance sheet items. Thus, the
effective period of interest rate established for a financial instrument indicates the extent of Bank’s exposure
toward interest rate risk. The bank re-establishes the cost of assets and liabilities. The financial instruments are
bearing the interest market rate, thus the fair values do not differ significantly from the accounting values.
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 32
29. Fair value and Risk Management (continued)
Liquidity risk
Liquidity risk is the risk that the Bank will be unable to meet its payment obligations at maturity. According to
the Regulations issued by the National Bank of Moldova, the Bank daily monitors the liquidity indicators
calculated from financial information according to two principles established by the National Accounting
Standards. The first principle takes into consideration the ratio between the long term assets and liabilities (non-
liquid). The second principle calculates Bank’s current liquidity taking into consideration the ratio between
liquid assets and total Bank’s assets. Bank’s liquidity as of 31 December 2011, calculated according to those two
principles, constituted 0.53% and 32.18% and as of 31 December 2010 – 0.71% and 37.21%.
Regulations impose a minimum level of 20% per current liquidity calculated according to principle two and a
maximum level of 1 for the liquidity calculated according to the principle 1 as of 31 December 2011 and
respectively as of 31 December 2010.
Liquidity risk is the risk of loss arising due to the gap between maturities of Bank’s assets and liabilities. The
Bank manages its liquidity risk through a regular estimation of the liquidity position of the Bank. The gap
analysis of the Bank’s assets and liabilities based on their remaining maturities as of 31 December 2011 and as
of 31 December 2010 is presented in note 34.
Country risk and counterparty risk
The Bank developed counter-party classification criteria according to the economic-financial situation and
country risk. For the calculation of counterparty and country risk the Bank uses the Standard Poor’s, Moody’s,
Fitch ratings. Depending on counter-party and country risk the Bank forms the loss provisions, reflecting the
respective risks in the accountancy. For the non-resident counter-party is used the smallest rating attributed by
international rating agencies. When the country and counter-party rating is higher than A-/A3, the risk degree is
being considered minimal. The countries for which there is no international rating are classified as having the
highest risk category.
Operational risk
The Bank has a rigorous conceived administration body. It includes the clear organizational structure with well
defined transparent and coherent responsibilities, efficient risk identification, administration, monitoring and
reporting processes and adequate internal control mechanism, which include solid administration and accounting
procedures.
The Bank observes the stipulations for operational risk administration from the regulations and other documents,
as well as the recommendations issued by the NBM.
Credit risk
Within its usual activity, the Bank ensures its credit risks towards the loans and prepayments granted to clients,
towards its placements for other financial borrowings and other off-balance sheet items. The Bank can also be
affected by losses due to credit risk concentration in a certain economic group within the context of economic
changes in Moldova. Credit risk administration is regularly monitored by observing the credit limits, evaluation
of debtors quality and some conservatory policies towards the constitution of provisions.
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 33
30. Maximum gross exposure to credit risk
Maximum gross exposure to credit risk is presented below:
Note 2011 2010
MDL’000 MDL’000
Current accounts and deposits with banks 5 45,094 190,763
Balances with National Bank of Moldova 6 95,277 92,010
Overnight placements 7 67,973 78,126
Investment securities 8 287,329 189,527
Loans 9 666,138 617,106
Accrued interest receivable 11 19,842 17,103
Other assets 13 19,645 3,245
1,201,298 1,187,880
Letters of credit 27 - -
Guaranties 27 39,884 45,487
Future credit commitments 27 27,012 17,325
66,896 62,812
Maximum exposure to credit risk
1,268,194 1,250,692
Concentration of net exposure for Nostro accounts and deposits with other banks:
2011 2010
MDL’000 MDL’000
ANGLO- ROMANIAN BANK LTD -
LONDRA - 1,525
BCR SA Bucuresti 2,206 331
BHF-Bank 13 2,718
CITIBANK 2,801 12,508
COMMERZBANK 793 5,663
B.C. ENERGBANK S.A. 19,359 -
ERSTE GROUP BANK AG 69,157 235,967
B.C. EXIMBANK-Gruppo Veneto Banca S.A. 15,388 -
B.C. UNIVERSALBANK S.A. - 132
B.C. VICTORIABANK S.A. 2,636 1,738
UNICREDIT BANK, MOSCOW, MOSCOW 54 8,021
RAIFFEISEN BANK ROMANIA SA 683 162
RAIFFEISEN BANK AUSTRIA ZAO,
MOSCOW 220 124
AKB RUSSLAVBANK ZAO, Moscow 180 -
113,490 268,889
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 34
31. Major debtors and creditors
Concentration of net exposure as at 31 December 2011 for first ten debtor clients, presented in groups or
individually:
2011 2011
MDL’000 in % for statutory
capital – 252,414
MDL’000
DAAC - AUTOSPORT S.R.L. 26,649 10.56%
S.C. GREEN VALLEY REALTY S.R.L. 26,492 10.50%
Total 53,141 21.06%
Concentration of exposure on current and deposit accounts of clients which exceed 5% out of own Bank’s funds,
calculated in accordance with accounting principles of the Republic of Moldova: no such clients.
Concentration of net exposure as at 31 December 2010 for first ten debtor clients, presented in groups or
individually:
2010 2010
MDL’000 in % for statutory
capital – 223,279
MDL’000
AIR MOLDOVA I.S. 30,071 13.47%
S.C. MAGT-VEST S.R.L. 29,878 13.38%
MAGNIFIC SRL 28,595 12.81%
S.C. CREATOR-IU. BORS S.R.L. 28,537 12.78%
S.C. EUROIMPEX S.R.L. 28,463 12.75%
I.M. CIRASICO S.R.L. 28,063 12.57%
DAAC - AUTOSPORT S.R.L. 25,293 11.33%
Total 198,900 89.08%
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 35
32. Balance sheet structure by currency
31 December 2011
Total MDL USD EUR Others
MDL’000 MDL’000 MDL’000 MDL’000 MDL’000
ASSETS
Cash on hand 23,512 18,979 2,687 1,543 303
Current accounts and deposits with banks 44,152 350 23,013 19,472 1,317
Balances with National Bank 95,277 47,144 16,404 31,729 -
Overnight placements 67,973 - 31,655 36,318 -
Investment securities 288,327 288,327 - - -
Loans and receivables on financial leasing 636,064 122,858 236,295 276,911 -
Property and equipment 27,621 27,621 - - -
Accrued interest receivable 19,842 13,676 786 5,380 -
Other property 40,053 40,053 -
Other assets 23,332 21,119 59 2,154 -
Total assets 1,266,153 580,127 310,899 373,507 1,620
LIABILITIES
Non-interest bearing deposits
Deposits of individuals 13,598 2,152 2,678 8,757 11
Deposits of legal entities 143,989 65,393 11,765 65,374 1,457
157,587 67,545 14,443 74,131 1,468
Interest bearing deposits
Due to banks 576,734 81,045 257,739 237,950 -
Deposits of individuals 143,641 79,236 16,871 47,534 -
Deposits of legal entities 115,560 88,883 15,839 10,838 -
835,935 249,164 290,449 296,322 -
Subordinated loans - - - - -
Accrued interest payable 4,992 2,280 1,332 1,380 -
Other liabilities 11,451 11,276 83 92 -
Provisions for loss on contingent liabilities 502 338 34 130 -
Total liabilities 1,010,467 330,603 306,341 372,055 1,468
GAP 255,686 249,524 4,558 1,452 152
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 36
32. Balance sheet structure by currency (continued)
31 December 2010
Total MDL USD EUR Others
MDL’000 MDL’000 MDL’000 MDL’000 MDL’000
ASSETS
Cash on hand 31,503 12,884 7,592 10,846 181
Current accounts and deposits with banks 190,165 - 98,088 91,333 744
Balances with National Bank 92,010 36,006 25,394 30,610 -
Overnight placements 77,726 - 12,154 57,976 7,596
Investment securities 190,525 190,525 - - -
Loans and receivables on financial leasing 533,246 152,648 173,057 207,541 -
Property and equipment 33,846 33,846 - - -
Accrued interest receivable 17,103 16,471 102 530 -
Other property 56,005 56,005 - - -
Other assets 6,810 6,769 15 26 -
Total assets 1,228,939 505,154 316,402 398,862 8,521
LIABILITIES
Non-interest bearing deposits
Deposits of individuals 8,152 1,397 1,767 4,982 6
Deposits of legal entities 106,655 51,555 10,732 42,865 1,503
114,807 52,952 12,499 47,847 1,509
Interest bearing deposits
Due to banks 520,471 30,944 285,617 203,910 -
Deposits of individuals 137,645 67,876 13,068 56,701 -
Deposits of legal entities 210,916 170,172 16,833 23,911 -
869,032 268,992 315,518 284,522 -
Subordinated loans 64,418 - - 64,418 -
Accrued interest payable 3,751 1,747 1,337 664 3
Other liabilities 14,242 2,588 138 11,512 4
Provisions for loss on contingent liabilities 496 447 - 49 -
Total liabilities 1,066,746 326,726 329,492 409,012 1,516
GAP 162,193 178,428 (13,090) (10,150) 7,005
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 37
33. Sensitivity analysis to currency risk
The Bank performed sensitivity analysis to currency risk at which it is reasonably exposed as at 31 December
2011 and as at 31 December 2010, showing how income statement and capital could have been affected as a
result of possible changes in currency rates.
The table below shows the currencies for which the Bank has significant exposure to currency risk as at 31
December 2011 for the balance sheet items. The analysis demonstrates the effects of reasonably possible
changes in currency rates against Moldovan Leu with all other variables held constant. Negative amounts
indicate possible net decrease in income statement or capital before taxation while positive amounts indicate
possible indicate net increase.
Possible
increase in
rates, in %
Income/(loss)
effect
MDL’000
Possible
decrease in
rates, in %
Income/(loss)
effect
MDL’000
As at 31 December 2011
EUR +10% 145 -10% (145)
USD +10% 456 -10% (456)
Possible
increase in
rates, in %
Income/(loss)
effect
MDL’000
Possible
decrease in
rates, in %
Income/(loss)
effect
MDL’000
As at 31 December 2010
EUR +10% (1,015) -10% 1,015
USD +10% (1,309) -10% 1,309
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 38
34. Maturity structure
The maturity structure of the Bank’s assets and liabilities based on the remaining maturity as of 31 December 2011 is as follows:
As at 31 December 2011 Total
Less than 1
month
From 1 month
to 3 months
From 3 mon.
to 1 year
From 1 to 5
years
More than 5
years
Undefined
maturity*
MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 ASSETS
Cash on hand 23,512 23,512 - - - - -
Current accounts and deposits with banks 44,152 21,541 22,611 - - - -
Balances with National Bank 95,277 95,277 - - - - -
Overnight placements 67,973 67,973 - - - - -
Investment securities 288,327 241,931 43,298 900 1,200 998
Loans and receivables for financial leasing, net 636,064 29,192 4,427 74,029 255,389 268,537 4,490
Property and equipment 27,621 - - - - - 27,621
Accrued interest receivable 19,842 19,842 - - - - -
Other property 40,053 - 3,194 25,212 11,647 - -
Other Assets 23,332 9,155 10,905 - - - 3,272
Total assets 1,266,153 508,423 84,435 100,141 268,236 268,537 36,381
LIABILITIES
Due to banks 576,734 139,660 7,537 67,793 361,744 -
Due to customers 416,788 236,236 69,046 109,214 2,292 -
Other borrowings - - - - - - -
Accrued interest payable 4,992 4,992 - - - - -
Other liabilities 11,451 7,139 - 4,312 - - -
Provisions for loss on contingent liabilities 502 502 - - - - -
Total liabilities 1,010,467 388,529 76,583 181,319 364,036 - -
Maturity gap 255,686 119,894 7,852 (81,178) (95,800) 268,537 36,381
Cumulative maturity gap 119,894 127,746 46,568 (49,232) 219,305 255,686
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 39
34. Maturity structure (continued)
As at 31 December 2010
Total Less than 1
month
From 1
month to 3
months
From 3 mon.
to 1 year
From 1 to 5
years
More than 5
years
Undefined
maturity*
MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 ASSETS
Cash on hand 31,503 31,503 - - - - -
Current accounts and deposits with banks 190,165 190,165 - - - - -
Balances with National Bank 92,010 92,010 - - - - -
Overnight placements 77,726 77,726 - - - - -
Investment securities 190,525 72,787 59,762 55,434 1,543 - 998
Loans and receivables for financial leasing, net 533,246 33,396 34,122 115,179 209,103 88,677 52,769
Property and equipment 33,846 - - - - - 33,846
Accrued interest receivable 17,103 17,103 - - - - -
Other property 56,005 - - 150 55,855 - -
Other assets 6,810 2,513 191 1,974 2,132 - -
Total assets 1,228,939 517,203 94,075 172,737 268,633 88,677 87,613
LIABILITIES Due to banks 520,471 82,163 96,929 203,258 138,121 - -
Due to customers 463,368 223,892 83,993 145,525 9,958 - -
Other borrowings 64,418 - - - - 64,418 -
Accrued interest payable 3,751 3,751 - - - - -
Other liabilities 14,242 14,242 - - - - -
Provision for loss on contingent liabilities 496 20 65 292 119 - -
Total liabilities 1,066,746 324,068 180,987 349,075 148,198 64,418 -
Maturity gap 162,193 193,136 (86,912) (176,338) 120,435 24,259 87,613 Cumulative maturity gap
193,136 106,224 (70,114) 50,321 74,580 162,193
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 40
35. Sensitivity analysis to interest rate risk
Interest rate risk represents the risk attributable to interest bearing financial instruments from the balance sheet as
a result of changes in interest rates on the market.
Bank grants loans and accepts deposits at both fixed rates and variable ones. Loans at variable rates granted to
clients as well as deposits from clients represent instruments for which the Bank has the right to modify
unilaterally the interest rates as a consequence of possible changes on the market. Bank notifies its clients 15
days in advance of the changes. By these instruments the Bank secured additionally its exposure to interest rate
risk and is able to manage the market impact over Bank’s income.
According to the internal and external financial market evolution, the Bank forecasts the evolution of interest
rates for its assets and liabilities and their impact on net interest income. The bank estimates a fluctuation of +/-
100 and +/- 50 basis points for 2011 and 2010.
Increase in basis
points
Sensitivity of Net
Interest Income,
MDL 000
Decrease in basis
points
Sensitivity of Net
Interest Income,
MDL 000
2011 +100 2,474 -100 (2,474)
+50 1,237 -50 (1,237)
2010 +100 810 -100 (810)
+50 405 -50 (405)
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 41
35. Sensitivity analysis to interest rate risk (continued)
As at 31 December 2011
Total Less than 1
month
From 1
month to 3
months
From 3
months to 1
year
From 1 to 5
years
More than 5
years
Non-interest
bearing items
MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000
ASSETS
Cash on hand 23,512 - - - - - 23,512
Current accounts and deposits with banks 44,152 41,299 - - - - 2,853
Balances with National Bank 95,277 35,185 - - - - 60,092
Overnight placements 67,973 67,973 - - - -
Investment securities 288,327 68,487 43,498 175,344 - - 998
Loans, net 636,064 555,395 30,798 11,397 - - 38,474
Property and equipment 27,621 - - - - - 27,621
Accrued interest receivable 19,842 - - - - - 19,842
Other property 40,053 - - - - - 40,053
Other assets 23,332 - - - - - 23,332
Total assets 1,266,153 768,339 74,296 186,741 - - 236,777
LIABILITIES
Due to banks 576,734 132,266 196,559 247,909 - - -
Due to customers 416,788 259,201 - - - - 157,587
Other borrowings - - - - - - -
Accrued interest payable 4,992 - - - - - 4,992
Other liabilities 11,451 - - - - - 11,451
Provisions for loss on contingent liabilities 502 - - - - - 502
Total liabilities 1,010,467 391,467 196,559 247,909 - - 174,532
Maturity gap 255,686 376,872 (122,263) (61,168) - - 62,245
Cumulative maturity gap 376,872 254,609 193,441 193,441 193,441 255,686
Banca Comerciala Romana Chisinau SA
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 December 2011
Translated into English for information purposes 42
35. Sensitivity analysis to interest rate risk (continued)
As at 31 December 2010
Total Less than 1
month
From 1
month to 3
months
From 3
months to 1
year
From 1 to 5
years
More than 5
years
Non-interest
bearing items
MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000 MDL’000
ASSETS
Cash on hand 31,503 - - - - - 31,503
Current accounts and deposits with banks 190,165 185,619 - - - - 4,546
Balances with National Bank 92,010 41,255 - - - - 50,755
Overnight placements 77,726 77,726 - - - -
Investment securities 190,525 72,308 60,037 57,182 - - 998
Loans, net 533,246 480,477 - - - - 52,769
Property and equipment 33,846 - - - - - 33,846
Accrued interest receivable 17,103 - - - - - 17,103
Other property 56,005 - - - - - 56,005
Other assets 6,810 - - - - - 6,810
Total Assets 1,228,939 857,385 60,037 57,182 - - 254,335
LIABILITIES
Due to banks 520,471 229,835 96,929 193,707 - - -
Due to customers 463,368 348,784 - - - - 114,584
Other borrowings 64,418 64,418 - - - - -
Accrued interest payable 3,751 - - - - - 3,751
Other liabilities 14,242 - - - - - 14,242
Provisions for loss on contingent liabilities 496 - - - - - 496
Total liabilities 1,066,746 643,037 96,929 193,707 - - 133,073
Maturity gap 162,193 214,348 (36,892) (136,525) - - 121,262
Cumulative maturity gap 214,348 177,456 40,931 40,931 40,931 162,193