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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

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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