In the third quarter 2015 Komercijalna banka recorded a profit of 1.3bn dinars and ranks second in the Serbian banking sectors with a market share of about 13%. More than 900,000 customers have placed their trust in our Bank and this year savings have reached record 1.6bn euros.

Despite the profit that the Bank is making, results for the third quarter are not at the planned level, which comes as a consequence of one-off expenses recorded in the Bank's accounts. These expenses resulted from impairment of a number of loans that the Bank had granted and which are now difficult to recover due to the economic situation, which is a problem the whole of the banking sector is facing. This procedure is by no means a precedent in the banking industry and is used, as an operational method, even by the largest banks in the world. The total amount of these loans in the Serbian banking sector is 3,600 million euros in all banks and Komercijalna banka's share in these is twice as low as its share in the Serbian banking market, measured in terms of assets.

Loans approved in the past, which are now categorised as bad assets, were granted in accordance with all standards of good banking practice, with adequate security instruments that were fully appropriate at the moment of granting the loans. It can be realistically expected that enforcement of collaterals will result in a recovery of a portion of these loans.

Although the nine-month results are not as planned, the realized profit of 1.3bn dinars, along with sound capital base and results from previous years, provides assurance for both the customers and shareholders that the Bank will maintain its position of a market leader.

Komercijalna banka has high capital base and capital adequacy ratio of 20%, which is significantly higher than the prescribed 12%. All other performance indicators, prescribed by the NBS, greatly exceed the prescribed values.

The management's aim in the future is to maximise the Bank's performance and enhance its services so that its privatisation can yield the expected success for shareholders, the largest of which is the Serbian government, followed by the European Bank for Reconstruction and Development (EBRD), IFC, DEG, SwedFund.

Komercijalna banka's financial statements can be downloaded from the following link.

distributed by