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Aik banka ad Niš









NOTES









31.12.2010 Year

1. ESTABLISHMENT AND OPERATIONS OF THE BANK



Agro-industrial commercial bank AIK Banka AD Nis (hereinafter: "Bank") was established in the Treaty

establishing the 10th August 1993. Year. Its operations and organization of the Bank into line with the Law on

Banks and Other Financial Institutions 1995th year and the Commercial Court in Nis is registered as a joint

resolution 1291/95 of 22 Fi June 1995. year.





The Bank is registered in the Republic of Serbia to provide payment, credit and deposit activities at home and

abroad, and in accordance with the Banking Act is to operate on the principles of liquidity, safety and profitability.



The Bank's headquarters in Nis, Nikola Pasic 42nd Street The Bank conducts its business through its head office

and branches in Nis, Nis, Belgrade, Novi Sad, Kragujevac, Krusevac, Leskovac,

Jagodina, Zajecar Kraljevo, Cacak, Uzice, Novi Pazar, Pancevo, Pozarevac, Sabac,

Valjevo, Smederevo, Zrenjanin, Vrbas, Sombor, Subotica

for a total 21filijale, and 39 branch offices throughout Serbia and 24 counters



At 31 December 2010. The Bank had 478 employees, and the average number zposlenih based on hours of

work in 2010 amounted to 480 (the repentant 2009th godinebilo of 481 employee and the average number of

employees was 463).

Tax Identification Number Bank 100,618,836th





2. BASIS OF PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS



2.1. Basis of Preparation and presentation of reports fiiaisijskih



The Bank maintains records and prepares financial statements in accordance with the Accounting and Auditing of

the Republic of Serbia (Official Gazette 46/2006, 111/2009), the Banking Act (Official Gazette 107/05, 91/10) and

other relevant by issued by National Bank of Serbia, as well as other relevant legislation in the Republic of Serbia.





In accordance with the Accounting and Auditing of legal persons and entrepreneurs in the Republic of Serbia shall

prepare and present financial statements in accordance with legal, professional and internal regulations, with the

professional regulations include applicable framework for the preparation of the financial statements (the

"Framework") , International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and

interpretations that are part of the standard, or the text of IAS and IFRS, which has been implemented, does not

include grounds for concluding, illustrating examples, guidance, feedback, the opposite opinion, elaborated

examples and other supplementary material.









Changes to existing standards and translation of new IFRS and interpretations that are an integral part of the

standards issued by the International Accounting Standards Board and IASB IFRS by 1 January 2009. year, were

formally adopted following the decision of the Minister of Finance no. 401-00-1380/2010-16 and published in the

Official Gazette of RS 77/2010. Amended or issued IFRS standards and interpretations, after this date, been

translated and published, and therefore have not been applied in preparing these financial statements.





The accompanying financial statements have been prepared in the format prescribed by the forms and contents of the

Financial Statements for Banks ("Official Gazette. Gazette, no. 74/08, 3 / 09, 12/09 and 5 / 10), which provides for

the application of a set of financial statements, which form and content did not comply with those stipulated in the

revised IAS 1 - Presentation of Financial Statements, whose application is mandatory for accounting periods starting

at 1 January 2009. year.



1

2.2.



The Bank is in the preparation of these financial statements applied accounting policies described in Note 3

which are based on accounting, banking and tax laws of the Republic of Serbia.



The financial statements are presented in thousands. The dinar is the official reporting currency in the

Republic of Serbia.



The accompanying financial statements present fairly in all material respects, the financial position of banks as of

31.12.2010, as a result of its operations, changes in equity and cash flows for the year ended on that date.



2.2. Standards and iiteriretacije who are irimeii



On the day of publication of these financial statements below the standards are implemented in the

Republic of Serbia.



- IAS 1 - Presentation of Financial Statements (effective from 1 January 2009.)

- IAS 23 - Borrowing Costs (effective from 1 January 2009.)

- IFRS 8 - Operating Segments (effective from 1 January 2009.)

- IFRS 3 - Business Combinations and IAS 27 - Consolidated and Separate Financial Statements (effective

from 1 July 2009.)

- Amendments to IFRS 2 - Share-Based Payment - Vesting Conditions and Cancellations (effective

1. January 2009. years);

- Amendments to IAS 32 - Financial Instruments: Presentation and IAS 1 - Presentation of Financial Statements

(effective from 1 January 2009.) Amendments to IAS 39 - Financial Instruments: Recognition and

Measurement (effective from 1 July 2009.)



- Amendments to IFRS 1 - First-time Adoption of International Financial Reporting Standards and IAS 27 -

Consolidated and Separate Financial Statements (effective from 1 January 2009.)



- Improvements to International Accounting Standards 2008th (Effective from 1 January 2009.)



- IFRIC 15 - Agreements for construction of residential and commercial properties (effective from 1 January

2009.)

- Improvements to IFRS 1 - First-time Adoption of International Financial Reporting Standards (effective from

1 July 2009.)

- IFRIC 17 - Distribution of non-cash assets to owners (effective from 1 July 2009).



- IFRIC 13 - Customer Loyalty Program (effective July 1, 2008.)

- IFRIC 14 - IAS 19 - The Limit on Defined Benefit Asset, Minimum Funding Requirements and their

Interaction (effective 1 January 2008.)

- IFRIC 16 - Hedges of a Net Investment in a Foreign Operation (effective from 1 October 2008.).



The Bank is in the preparation of these financial statements applied accounting policies described in Note 3

which are based on accounting, banking and tax laws of the Republic of Serbia.



The financial statements are presented in thousands. The dinar is the official reporting currency in the

Republic of Serbia.



The accompanying financial statements present fairly in all material respects, the financial position of banks as of

31.12.2010, as a result of its operations, changes in equity and cash flows for the year ended on that date.



2

2.3. Uioredni iodaci



The financial statements are presented comparative data for 2 years, for the current year 2010 and the previous

2009th year, in order to provide information about dynamic trends.





2.4. Using irocenjivanja



Presentation of financial statements requires management of the Bank to make best estimates and assumptions

that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the

date of the financial statements and revenues and expenses during the reporting period. These estimates and

assumptions are based on information available as of the financial statements.









3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





3.1 Income and expenses and interest income and fees

Income and expense recognized in the income statement for all financial instruments that bear interest, based on

interest expense using the effective yield method. Income and expenses are recorded in the income statement in the

period to which they relate in accordance with the principle of income and expenses and terms of contractual

relationships that are defined by contract of the Bank and the client. Bank stops expressing interest income at the

time of Court procedure claims. Interest accrued on this account is recorded as suspended interest in off balance

sheet, in accordance with the applicable Rules of the Chart of Accounts.

Fees related to approved loans, guarantees and letters of credit shall be stored and recognized as revenue in

proportion to the elapsed time of the loan or guarantees and letters.

3.2. Foreign Exchange

Transactions denominated in foreign currencies are translated into RSD at the average exchange rate in the

interbank foreign exchange market, prevailing at the transaction date.

Funds in foreign currencies at the balance sheet date are translated into RSD at the average exchange rate in the

interbank foreign exchange market that was in force on that date. Net gains or losses arising from transactions in

foreign currency and in the translation of balance sheet items denominated in foreign currencies are credited or

charged to the income statement as gains or losses from exchange rate differences.



3.3. Fixed assets and intangible assets

Fixed assets and intangible assets as at 31 December 2010. The stated at cost less depreciation.



Depreciation is provided evenly on the cost of fixed assets by applying the following annual rates in order to

completely write off the assets over their useful lives:

Buildings 1.30%

Computer Accessories 20.00%

Furniture and equipment 11.00%-20.00%

Motor vehicles 15.50%

Software 20.00%

The calculation of depreciation of fixed assets commences when the assets are put into use.

Bank Buildings include investment property used by the Bank for the purpose of earning income from the

issuance of the objects. Investment properties are stated at cost less accumulated depreciation.



3.4. Loans



3

Loans are stated at the balance sheet at the amount of investments, net of principal outstanding principal and

accumulated depreciation, which is based on an assessment of specific risks identified for individual loans and the

risk of that experience shows that are contained in the portfolio. Loans in RSD, which he contracted from the risk of

tying the exchange rate against EUR or binding to the growth of retail prices, are revalued in accordance with the

contract signed for each loan. The effects of this revaluation are recorded in favor or against the revenue and

expenses from revaluation of assets.



Write-offs of uncollectible receivables is based on a court decision, settlement or interested parties on the basis

of decisions of the Management Board and with the consent of the Shareholders.



3.5. Securities held to maturity

Hartaje of securities held to maturity are securities for which there is an intention and ability to hold to maturity.

Securities held to maturity are notes and bonds of old foreign currency savings. All securities are initially recorded

at cost. At the balance sheet securities held to maturity investments are carried at amortized cost with a deduction for

provisions for potential losses.



3.6. Securities available for sale

Securities available for sale include securities that can not be classified as financial assets held for trading or as

financial assets held to maturity. These securities are financial instruments that can be sold for the purpose of

providing liquidity or changes in equity prices and the like. Securities available for sale consist of securities that are

initially reclassified as shares in banks and other legal entities. Equity shares listed on stock exchanges are initially

measured at fair value, and those that are not quoted on the stock market, and when the circumstances are such that

the fair value can not be determined pouzano are recognized by amortšovanoj values, based on information from

persons in whose capital investment has been made.





3.7. Securities traded

Securities traded securities are held for profit from trading in a short period of time. Securities are initially measured

at cost, while at the balance sheet at fair value.





3.8. Tangible assets acquired napltom claims

Tangible assets acquired napltom receivables represent the real estate which was initially set up a mortgage to the

bank, based on security investments, which the bank took over the collection of receivables.

They are valued in the books at a price equal to the gross value of loans that charge from material values, which is

lower than market prices, set by the suskih Appraisers, and the devaluation was not necessary, except for the hotel

"freedom" in Pancevo, whose value devaluation has been reduced to market price.





3.9. Impairment of financial assets

At each balance sheet date the Bank assesses whether there is objective evidence of impairment of an asset or group

of assets. It is believed that the financial asset or group of assets impaired if, and only if there is objective evidence

of impairment resulting from one or more events that occurred after initial recognition of assets and the event (or

events) affect the estimated future cash flows of a financial asset or group of financial means that reliably estimated.



Evidence of impairment may include indications that the borrower or group of borrowers facing significant

financial difficulty, default or delinquency in interest or principal, the likelihood that there will be bankruptcy or

other financial reorganization and where the data show that there was a measurable decrease in future cash flows

such as changes in arrears or economic conditions that correlate with defaults conditions.





a) Loans and advances



4

Assessment of impairment of loans and advances made by the Bank's internal model of classification (by ERNST-

UOUNG) using methods and techniques defined methodology for calculating corrections vrednsoti balance sheet

assets and provisions for losses on off-balance sheet items of the Bank .. At each balance sheet date and the end of

each quarter, the Bank assesses whether there is objective evidence of impairment of an asset or group of assets.

Evidence of impairment may include indications that the borrower or group of borrowers facing significant

financial difficulty, default or delinquency in interest or principal, the likelihood that there will be bankruptcy or

other financial reorganization and where the data show that there was a measurable decrease in future cash flows

such as changes in arrears or economic conditions that correlate with defaults conditions, and that the bank should

take appropriate measures in the collection of its claims of the debtor. Credit risk assessment is done on an

individual and group basis.



Idividualno estimated impairment of non-performing loan portfolio of the Bank with debtors who have

obligations to the Bank over 6 million.

Are assessed collectively for impairment performing part of the portfolio for companies and entrepreneurs (ie Loans

that are not in default) as well as non-performing part of the portfolio (tj.kredita who are in default) for debtors who

have obligations to Bank under 6 million RSD tj.ispod amount to be determined depending on the balance sheet of

the Bank's evaluation of impairment as well as for debtors where there was no increase credit risk. _U Purpose of a

collective evaluation of impairment, financial assets are grouped into segments depending on the number of days of

real delays in settlement of obligations to the Bank and an internal application used to determine whether there has

been a obzvreĎenja. Financial asset or group of assets are obezvreĎeniako and only if there is objective evidence of

impairment resulting from one or more events that occurred after initial recognition of assets and the event (or

events) affect the estimated future cash flows of a financial asset or group of financial assets that can be reliably

estimate.





If there is objective evidence that there was a loss due to impairment, the amount of the loss is measured as the

difference between the carrying amount and the present value of future cash flows (excluding future expected

credit losses that have not yet been incurred).

The carrying value of the asset is reduced through the use of an allowance account and the loss is recognized in the

income statement. Loans together with the associated allowance are written off when there is no realistic prospect

that funding in the future recovery and when the collateral has been realized or has been transferred to the Bank. If,

during the next year, there is a decrease or increase the amount of recognized impairment loss previously

recognized impairment loss is increased or reduced by adjusting the allowance account.



The present value of expected future cash flows is discounted at the original contractual interest rate. The

calculation of present value of estimated future cash flows of a collateralized financial asset reflects the cash flows

that may result from the realization of collateral, less costs for obtaining and selling the collateral, whether it is

likely that there will be a process of realization of the collateral or not.





In accordance with the regulations of the National Bank of Serbia, the bank also needed to allocate rezervzu for

potential losses. Loans, deposits and other exposure in accordance with the Decision on the classification of NBS

are classified in categories A, B, C, D and E, and depending on the assessment of collection, number of days of

delay, the financial position of the client and the quality of collaterals, each potraţivannje classified into various

categories. The estimated amount of reserves for potential losses is calculated by applying the percentages range

from 1% to 2% of loans classified in category A, from 5% to 15% of loans classified as category B, from 20% to

35% on placement category V, from 40% to 75% on loans from categories D and 100% in category D investments.



The difference amount of special reserves for potential losses calculated in accordance with the National Bank of

Serbia on the classification of balance sheet assets and off-balance and the amount of the allowance balance sheet

assets and provisions for losses on off-balance sheet items, which are calculated in accordance with internally

adopted methodology, on the special account in the reserves for potential losses.





5

f) Investments in securities held to maturity

The Bank assesses individually to determine whether there is objective evidence of impairment of investment

securities held to maturity. If there is objective evidence that there had been incurred, the amount of loss from

impairment is measured as the difference between the carrying amount and the present value of estimated future cash

flows. Asset's carrying amount is reduced and the amount of loss recognized in the income statement. If, in the

subsequent year, the reduced amount of the estimated impairment of an event that is due and after the recognition of

impairment, any previously recognized impairment loss is reduced and credited to income.





s) Vrednostiraspoložive stock for sale (equity)

When it comes to securities available for sale, the Bank assesses at each balance sheet date whether there is

objective evidence that the investment is impaired. When there is evidence of impairment, the cumulative loss,

valued as the difference between purchase price and the current fair value, less any impairment loss of investment,

previously recognized in the income statement, is removed from equity and recognized in the income success, and

in favor revalorizicionih reserves, ie. directly to equity.



N) Securities traded

For securities traded also made an assessment of the balance sheet date whether there is objective evidence of their

impairment. If there has been impairment, impairment of securities that are traded shall be charged to the income

statement and increase the value of these securities in which the previously recognized impairment is also

recognized through the income statement.



3.10. Cash and cash equivalents

The cash flow statement, cash and cash equivalents includes cash, current accounts with the NBS, including the

required reserves in RSD and in accounts at other banks.



3.11. Means and ioslovima in behalf of a third person's

Assets managed on behalf of third parties, managed by the Bank for a fee are not included in the balance

sheet.



3.12. Income Taxes



Current-and iorez tax

Income tax is an amount calculated by applying the tax rate of 10% on the profit before tax, after deduction of the

effects of permanent differences that the prescribed tax rate reduced to an effective tax rate. The final amount of

liabilities for income tax determined by applying the statutory income tax rate on the tax base established Tax

returns.

Law on Corporate Profit Republic of Serbia does not allow any tax losses in the current period to be used to recover

taxes paid in previous periods. However, losses of the items reported in the income tax can be used to reduce the tax

base in future periods, but not more than ten years.

Deferred tax iorez

Deferred income tax is calculated using the liability method, for the balance sheet for temporary differences arising

between the tax bases of assets and liabilities and their carrying values. Applicable tax rate on the balance sheet date

or the tax rates that are after that date to take effect, are used to determine deferred income tax expense. Deferred

tax liabilities and pribnaju as gains and losses from the effects of temporary differences in accordance with IAS 12

Indirect iorezi and doirinosi

Indirect taxes and contributions include various taxes and contributions paid by national and local regulations.



3.13. Benefits zaioslenih

In accordance with the regulations prevailing in Serbia, the Bank pays contributions to state funds that protect the

social security of workers. These are contributions paid by employees of the Bank calculates the prescribed rates,

withheld from gross salary and paid by funds.



6

The Bank also calculates and contributions for employees paid by the employer and paid by the funds.

In accordance with the Labor Law, the Bank paid employees retirement pension, in accordance with its laws and

pay for the actual jubilee 10, 20, 30 and 40 years in the Bank. Long-term liabilities Provisions for retirement

benefits and jubilee awards in accordance with IAS 19, represents the present value of expected future payments

determined by measuring the actuarial.









4. RISK MANAGEMENT POLICIES









Risk management processes are critical to the continuing profitability of the Bank and each individual in the

Bank, in its domain, responsible for the exposure. The Bank is exposed to credit risk, liquidity risk and market

risk. The Bank is also subject to influence operational risk.





Independent risk control process does not include business risks such as changes in the environment, technology

and industry. The Bank monitored through the strategic planning process.



Board of Directors are responsible for identifying and controlling risks. However, the Bank established a

separate organizational unit - Department of Risk Management, responsible for monitoring and controlling risk.

Also, boards, as separate independent bodies, within their jurisdiction, are responsible for managing and

monitoring risks.



Upraeni Board and Executive Committee

Board of Directors and Executive Committee are responsible for the overall risk management, approval of strategy

and risk management principles, as well as the implementation of the principles, framework, policies and limits.

They are responsible for making and monitoring of relevant decisions about risk.





Sector upraeljanje risk

Risk Management Department identifies, measures, assesses and manages risks to which the Bank is exposed in

its operations. The sector is responsible for implementing and maintaining procedures related to risk, which

provides independent control process. This unit also provides complete coverage of risk in the system for

measuring and reporting on risk.



Committee on upraeljanje aktieom and pasieom

Committee on Asset and Liability Management monitors the Bank's exposure to risks arising from the structure

of its balance sheet claims and liabilities and off-balance sheet items and propose measures to manage interest

rate risk and, in particular, liquidity risk. Also, he is primarily responsible for funding and liquidity.



Upraeljanje risks and systems izeeštaeanja

The Bank's risks are measured using a method that reflects the losses that may arise in normal circumstances,

current operations and expected losses, which are based estimate of the ultimate losses on the basis of likely events.

Models using the probability derived from the available current and historical data, adjusted to reflect the economic

environment.





7

Monitoring and controlling risks is primarily based on the establishment of procedures and limits. These limits

reflect the business strategy and market environment of the Bank, and the level of risk that the Bank is willing to

accept. The Bank constantly monitors and measures the capacity of the overall risk by taking into account the

overall exposure to all risk types and activities. Information gathered from all its activities are examined and

processed in order to identify, analyze and control new risks. This information is presented and explained to the

Board of Directors and Executive Committee. The reports contain the total credit exposure, forecast investments,

deviations from the set limit, the measurement of market risk, liquidity ratios and risk profile changes. Over the

Bank's quarterly review the adequacy of allowance for indirect. The Committee on Asset and Liability

Management also submits quarterly reports on the risks which contains all the necessary information to evaluate

and draw conclusions about the risks to which the Bank is exposed. The daily report shall be submitted to the

Executive Board of the Bank and the relevant directors to limit utilization of market, liquidity, foreign exchange

risks and other significant information.









4.1. Credit risk





Bank loan approval is subject to credit risk, which is a possibility that the borrower become unable to partially or

fully pay the obligation at maturity.



In the implementation of credit policy, the Bank adheres to certain principles established by the Decision of credit

and other banking services and thereby protect against excessive exposure to credit risk. The bank manages and

controls credit risk by establishing limits the amount of risk it is willing to accept for some customers, the level of

groups of interrelated legal and natural persons, as well as among segments of customers, types of work that is

funded by a loan from the Bank, the industries to which they belong Bank account holders with constantly

monitoring the level izoţenosti those risks.



The Bank has established a process of monitoring the quality of loans to ensure timely identification of potential

changes in the creditworthiness of counterparties, including regular review of security. Limits in relation to clients is

provided using the credit risk classification system, which classifies each customer by a credit rating. Classification

of customers is subject to regular consideration. The process of monitoring the quality of loan enables the Bank to

estimate potential losses as a result of the risks incurred and to take corrective measures. Credit proposal is based on

analysis of the financial statements of the client, data on debt based on reports from Credit Bureau and the data

obtained from the clients themselves, data from the RIR and the liquidity account, business or business plan ...

Analyzing the structure operating income and expenses, cost and profitability, the development of net working

capital, financial stability, liquidity, impairment of asset positions, turnover ratio of certain categories of assets, and

cash flows. Analyzed, too, quality guarantors, the value and marketability of mortgages, the value of and quoting

Harry shares (taken as a pledge) of the Exchange, and the value and competitiveness of goods given in pledge.









The Bank constantly monitors the financial condition and operations of the borrower and controlling the proper

use of resources if the same contracted with the client - a borrower.



Risks for potential liabilities related to credit risk

The Bank issues guarantees and letters of credit to its customers and, based on a contingent liability to make

payment to third parties. In this way the Bank is exposed to risks related to credit risk, which could be overcome by

the same control processes and procedures that. Bank in the same way watching the exposure to credit risk in

issuing guarantees or letters of credit opened and in extending credit.





Collateral and other means of protection against credit risk



8

The amount and type of collateral required depends on an assessment of credit risk of each customer. The

main types of collateral are as follows:

- For commercial loans: mortgage on real estate, inventories and receivables, deposits, securities of other

persons, pledge on shares, pledge of goods, equipment.

- For loans to households: a mortgage on real estate and deposits, and the mortgage loans and insurance by

the National Corporation for Housing Loan Insurance.

The Bank also uses the guarantee (jointly and severally guarantee) from parent companies for lending

subsidiaries.

Management monitors the market value of collateral, requests additional collateral in accordance with the

agreements. Also, the management takes into account the market value of collateral when reviewing the adequacy of

allowance for impairment losses. In accordance with the policies of the Bank taken as collateral for sale in the

ordinary course of business. In this way, reduce or settle outstanding amounts due from customers.







Assessment obezeređenja



The impairment losses of balance and off-potraţivnja The Bank in accordance with its accounting policy and

methodology for calculating the allowance for the internal model and the Guidelines for Implementation

Methodology IAS 39 (by ERNST-UOUNG).

The main factors are taken into account when assessing impairment include: whether the delay in servicing of

principal or interest due, the perceived weakness in the cash flows of customers, existence of a deteriorating credit

rating, as well as the terms of the contract. The Bank assesses impairment at the individual client and group

evaluation of certain claims ..





Assessment obezeređenja loans and advances to banks and individuals praenim



The impairment losses of loans and advances to banks and corporate clients, based on the division of the Bank's

loan portfolio at the performing portfolio (loans that are not in default) and non-performing portfolio (loans that are

in default). Default loans are loans above the threshold of materiality that are burned in delay for more than 90 days

from the date of filing of accounts due and the due date specified by the host contract and the annex thereto (if it

exists) to shift part of maturity. Materiality threshold for legal entities and entrepreneurs is determined by the iznosz

of 10,000 RSD per individual placement or the client if they have an obligation to the Bank under a single plsmanu.

The Bank assesses individually impaired receivables from non-performing portfolio of clients who have obligations

to the Bank over 6 million NT with cil ^ em to determine whether there is objective evidence of impairment of

financial assets that are individually significant. Collective assessment of impairment is the Bank for financial assets

that are in the performing portfolio and the financial resources that are in non-performing portfolio and the amount

under 6 milionRSD per client.





Individual assessment of impairment is based on an estimate of the expected time of payment, when taking into

account the time intervals for assessment of potential damage-impairment claims. This estimate is based on

reducing the influx of loan repayment and interest on sadaĎšnju value of future cash flows and discounting them

using the agreed-discount interest rate stated on an annual basis. Estimated state individual updates of values as

opposed to total estimate represents the present value of future cash flows and overall status of all claims per course

credit partiji.Procena expected time of collection and assessment of the percentage of the realization of real estate

taken as collateral claims, depends on the type of real estate, the mortgage bvaničnim order entered in the land

register, the location at which it is located, the market's current economic strength and interest from potential

buyers and others.



Idividualno estimated impairment of non-performing loan portfolio of the Bank with debtors who have

obligations to the Bank over 6 million.





9

The present value of expected future cash flows are discounted using the effective interest rate contracted financial

asset (for financial resources for which the same has been calculated in accordance with the laws of the Republic of

Serbia) or application of contractual nominal interest rate is calculated at an annual rate (for the financially assets

which are not calculated effective interest rate) or the NBS discount rate for loans in which the effective interest rate

or nominal rate calculated at an annual rate less than the Discount rate. The calculation of present value of

estimated future cash flows of a collateralized financial asset reflects the cash flows that may result from the

realization of collateral.





That group. collectively assessed impairment performing loan portfolio of the Bank, and its non-performing loan

portfolio of debtors who have obligations towards the Bank under 6 million. and for debtors where there was no

increase credit risk.

Collective assessment of impairment performing loans is based on determining the probability that it will incur

default (PD) and assess the loss in the event of default (LDG). Collective assessment of impairment of non-

performing portfolio is based on the estimated loss in case of default, because the default has occurred. PD is

estimated by looking at claims that are not in default during a period of time and calculation of percent of claims that

enter into default during that period. The Bank made its loan portfolio segmentation based on the number of days of

delay in settlement of obligations. Probability of default in period to identify the loss is estimated using the transition

matrix. These matrices show the transition of clients from different groups performing portfolio in default in the

period between two dates. Loss given default and (LGD), the amount of loans that are not reimbursed, investments

that do not return to regular status and placements that can not napaltom compensation claims.





Risk assessment of guarantees and letters of credit is determined by applying the average rate guarantees and letters

of the fallen at the expense of their bank balance on the day of impairment. The average rate is calculated as the

ratio of guarantees and letters of the fallen at the expense of banks (including the initial state) in relation to the total

issued guarantees and letters of credit on the basis of data for the previous period of 12 months back from the day of

reckoning.

Exceptions are the guarantees and letters of credit fixed 100% in the past, and those claims that are covered by

deposit as collateral for securing the applicable provisions of the rate of 0%.





For other off-balance sheet exposures, provisions are estimated at the level of the client using the weighted average

rate of the allowance receivable balance estimated for the underlying client. For off-balance sheet exposures to

customers who do not have balance sheet exposure provision is calculated using the rate of performing loans

without delay.





Assessment impairment of loans to households



Assessment of impairment of loans to individuals and holders of registered farms is based on the division of

portfolios of performing portfolio (loans that are not in default) and non-performing portfolio (loans that are in

default). Default occurs when claims are material (in the population that is the amount above 1,000 RSD) west in

delay longer than 90 days. Provisions for performing portfolio is based on a collective assessment of impairment,

and non-performing portfolio: the individual assessment of clients which exceed 6 million NT, and the collective

assessment of the holders of not more than 6 million USD. Assessment of impairment for entrepreneurs is viewed

in the same way as for corporate clients.



Individually assessed for impairment based on an estimate of the expected time of collection, and is based on

reducing the influx of loan repayment and interest on the present value of future cash flows discounted using their

contractual / discount interest rate stated on an annual basis. Estimated state individual impairment assessment of

the difference of the total present value of future cash flows and overall status of all claims under the credit party.

Estimate of the expected time of collection and the percentage of the value of collateral that will be charged is done

depending on the type of collateral (a type of real estate, deposit), the legal basis on which they are based, real

estate and location dr.faktora.





10

Collective assessment of impairment performing loans to individuals and to legal persons based on the

determination of the probability that it will incur default (PD) and assess the loss in the event of default (LDG),

except that the placement of individuals PD estimates by type of loan products with similar credit risk profile, and

then each group product is divided into segments based on the delay, and on that basis to calculate the amounts are

not recoverable. Migration matrix for loans to individuals and holders of registered farms are based on the parties.





Estimation of the provision of off balance sheet risk exposure from guarantees to citizens is in the same way as for

corporate clients. Contingent liabilities that the bank may terminate unconditionally and without notice, are not

valued.









4.2. Foreign currency risk



Currency risk is the risk that the valuation of assets and liabilities due to foreign currency fluctuations. The Bank

has set limits on positions by currency, and positions are monitored on a daily basis.





The principle of protection against foreign exchange risk of the Bank to achieve and maintain foreign currency

liabilities to the extent of foreign currency or foreign currency liabilities. This ratio is reconciled from the

maturities of foreign currency assets and liabilities.









4.3. Liquidity risk



Liquidity risk is the risk that the Bank will not be able to settle within its due obligations. In order to reduce or limit

this risk, the Bank seeks to diversify its sources of funding, to manage the assets of reviewing its liquidity, and

monitors future cash flows and daily liquidity. This includes an assessment of expected cash flows and availability

of high grade collateral that may be of use to ensure additional funds, if required.



The Bank is exposed to daily requests for withdrawal by customers, affecting the funds available from current

accounts, deposits, withdrawal of credit. The Bank does not need to maintain the level of funds that would come out

to meet all the requirements to potential, estimating that the minimum level of reinvestment of funds due can be

safely predicted.





The Bank's management considers the daily report on the status of bank accounts and deposits. Empirically

determining the critical days for the Bank's liquidity, or the dates of significant outflows. Based on the

identification of available funds and daily needs, the decision on use of funds.



The Bank expects that not all contingencies and irrevocable commitments will be withdrawn before their maturity.









4.4. Risk of changes in interest rates



The risk to interest rates arises from the possibility that changes in market interest rates affect both the fair value

of financial instruments.





11

The Bank is exposed to interest rate risk as the maturity mismatches of assets and liabilities, which were

agreed fixed interest rate.







4.5. Capital Management



The Bank's management regularly monitors the Bank's capital adequacy ratios and other performance indicators

prescribed by the National Bank of Serbia and submit quarterly reports to the National Bank of Serbia on actual

indicators. Banking Act of the Republic of Serbia stipulates that banks must maintain minimum capital in the

amount of dinar equivalent of 10 million euros at the official average exchange rate, capital adequacy ratio of at

least 12%, and that the scope and structure of its operations in accordance with the performance decision on risk

management (Official Gazette no. 129/2007, 63/2008 and 112/2008) and the Decision on Capital ("Official Gazette.

Gazette No. 129/2007 and 63/2008).









5. INCOME AND EXPENSES

Thousands of RSD

Year 2010 Year 2009

Interest income

For loans:

- in RSD (700) 9,741,136 10,082,748

- in foreign currency (705) 170,960 287,553

9,912,096 10,370,301

For deposits:

- in RSD (701) 246,809 233,040

- in foreign currency (706) 271,365 189,063

518,174 422,103

Securities issued - in RSD (702):

- NBS bills in repo transactions 279,046 453,491

- Government Bills 146,118 244,431

- bill 752,560 627,945

- RS Bonds 30,657 0

1,208,381 1,325,867

From other investments:

- in RSD (703) 109,620 44,684

- in foreign currency (708) 0 0

109,620 44,684

11,748,271 12,162,955



Interest expense



In respect of loans in RSD: (gr.600) for deposits: -170,191 -166,790

- In RSD (gr.601 603) - Foreign

currency (gr.606) -1,623,844 -2,488,876

-3,312,527 -1,889,711

-4,936,371 -4,378,587

-5,106,562 -4,545,377

Net interest income

6,641,709 7,617,578



a) Interest income



Thousands of RSD

Deposits with National Bank of Serbia Year 2010 Year 2009

176,812 152,933

12

Placements with banks 308,626 288,410

Loans and advances to customers 10,054,452 10,395,745

Interest on securities:

- Bills of the NBS repo transactions 279,046 453,491

- Government Bills 146,118 244,431

- Bill 752,560 627,945

- RS bonds 30,657 0

11,748,271 12,162,955



5) Interest expense

Thousands of RSD

Year 2010 Year 2009

Deposits and loans 621,765 512,363

Deposits and loans to customers 4,484,797 4,033,014

5,106,562 4,545,377







6. INCOME AND EXPENSES AND COMMISSIONS

Thousands of RSD

Year 2010 Year 2009

Fee and commission income:

- By credit card transactions 76,859 86,991

- Payments 384,353 422,357

- Other fees 398,454 283,555

859,666 792,903

Fee and commission income:

- By credit card transactions -4,310 -1,957

- Payments -123,818 -178,476

-128,128 -180,433



Net fee and commission income 731,538 612,470







7. OTHER OPERATING INCOME

Thousands of RSD

Year 2010 Year 2009

Revenues from the lease of office space (7461000) 160,355 48,958

Revenue expenses refund. (746 d) 26,630 14,496

Gains from the sale of material and property (761) 338,498 0

Of liabilities (762) 65,313 10,702

Other income 7,406 29,002

598,202 103,158



8. INCOME AND EXPENSE INDIRECT WRITE-OFF

LOANS AND PROVISIONS



a) Items of the benefit / (charges) income Thousands of RSD

Year 2010 Year 2009

Losses balance sheet items:

- Interest and fees -700,942 -1,101,818

- Loans and deposits -4,611,368 -6,267,737

- Securities (excluding treasury shares) -141,691 -448,735

- Shares (participation) -522 0

- Other investments -286,359 -379,100

- Other assets -8,369 -909

-5,749,251 -8,198,299

Provisions for off-balance -524,500 -354,273

Provisions for Long-term benefits of employees -13,515 -2,444

13

Losses from suspension of interest 0 0

-6,287,266 -8,555,016

Revenue Impairment of balance sheet items:

- Interest and fees 291,481 147,963

- Loans and deposits 3,003,474 4,566,214

- Securities (excluding treasury shares) 114,718 254,904

- Shares (participation) 0 0

- Other investments 198,162 325,716

- Other assets 2,706 8,135

3,610,541 5,302,932

Reversal of provisions formed against

off-balance sheet items 356,904 722,426

Income from litigation ukid.rezervis.po 338,794 0

Prih.od ukid.rezervis.po dugor.benefic.zaposlenih 11,210 0

Income from collection of suspended interest 1,822 1,497

4,319,271 6,026,855

Net impairment losses and provisions -1,967,995 -2,528,161



b) Structure of provision (state)

Thousands of RSD

31. 12. 2010 31. 12. 2009

Interest and fees 1,528,023 1,155,091

Loans and deposits 9,143,056 7,640,492

Securities 641,472 614,499

Participation 19,795 19,273

Other investments 821,631 756,358

Other assets 107,879 102,224

12,261,856 10,287,937





c) Changes in allowance for impairment

Equity

Interest, fees Investmen

and Loans and Securities ts Other Other Total

(Interests )

commissions deposits Placements. assets.

(Note.1 (Note (Note.19

(Note.15) (Note.16) 7) .18) ) (Note.21)



At 1 January 2009. 218,856 5,938,969 420,668 19,273 702,978 109,446 7,410,190

Charge for the year 1,101,818 6,267,737 448,735 379,100 909 8,198,299

Reversal of allowance

for impairment -147,963 -4,566,214 -254,904 -325,716 -8,135 -5,302,932

Write-off, and transfer to,

suspended interest. -17,620 -4 4 -17,620



At 1 January 2010. 1,155,091 7,640,492 614,499 19,273 756,358 102,224 10,287,937

Charge for the year 700,942 4,611,368 141,691 522 286,359 8369 5,749,251

Reversal of allowance

for impairment -291,481 -3,003,474 -114,718 0 -198,162 -2,706 -3,610,541

Write-off, and transfer to,

suspended interest. -36,529 -105,330 0 0 -22,924 -8 -164,791



Balance at the end of 2010 1,528,023 9,143,056 641,472 19,795 821,631 107,879 12,261,856



g) Provision for estimated losses



Based on the categorization of investments established in accordance with regulations of the National Bank of Serbia on

31 December 2010. The calculation of the special reserve for estimated losses on the bank's exposure to credit risk:

in thousands









14

31. 12. 2010 31. 12. 2009

Special reserve for potential losses determined as per the

National Bank of Serbia requirements with respect to:

- balance sheet exposures 24,631,071 18,890,881

- off-balance sheet exposures 1,483,599 478,990

26,114,671 19,369,871

Allowances for impairment and provisions determined in

accordance with the internally adopted methodology

(IAS 39):

- allowance for impairment of balance sheet items -12,261,856 -10,287,937

- provision for losses contingent on off-balance sheet items -651,665 -484,069

-12,913,521 -10,772,006

Provisions determined in accordance with the internal

methodology exceeding the amount of provision

as per the NBS Decision 699,615 828,716

Special reserve for potential losses 13,900,765 9,426,581

Reserve for potential losses formed in prior years -9,426,581 -4,573,104

Additional provision for potential losses to be set

aside as appropriation of retained earnings 4,474,184 4,853,477



In accordance with the National Bank of Serbia on the classification of balance sheet assets and off-balance, the difference

amount of special reserves for potential losses calculated in accordance with this decision and the amount of the allowance

balance sheet assets and provisions for losses on off-balance sheet items, which are calculated in accordance with

internally adopted methodology , recorded in a special account in the reserves for potential losses.

The amount of missing special reserves for potential losses the Bank will allocate the burden of

accumulated profits, according to the Decision of the Bank.









15

9. WAGES, SALARIES AND OTHER PERSONNEL EXPENSES



Thousands of RSD

Year 2010 Year 2009

Salaries (630) 304,979 326,366

Benefits (631) 112,528 116,009

Taxes and contributions 152,500 148,423

(632,633)

Other staff costs (634,635) 38,401 104,284

608,408 695,082









10. OPERATING AND OTHER BUSINESS EXPENSES

Thousands of RSD

Year 2010 Year 2009

Materials (640D) 77,513 99,124

Servicing (640D) 41,178 39,811

Rentals (6410.6461) 187,693 158,943

PTT and Telecommunications. services (6411, 6438002) 118,821 116,976

Maintenance and security (6413) 110,746 119,584

Marketing and advertising (6412) 86,360 91,242

Donations and Sponsorship (6433) 25,997 62,984

Entertainment (6435) 31,459 25,811

Audit and expertise expenses (6434) 16,455 9,553

Insurance premium (6437) 217,243 120,820

Membership fee (64380000) 10,990 12,204

Court and other fees (64385, 6439006) 29,374 14,436

Brokerage fees and cost of Securities Commission (6438604,

6438704) 15,983 13,885

Costs of keeping the property (64388000) 100,961 71,762

Cost of acquisition of material values 67,895 17,356

(64389006,643891,6460)

Troš.dodatnog insurance zaposl.i finansir.invalida 17,916 17,230

(6439d)

Other intangible costs 26,045 30,511

Taxes and contributions (644.645) 258,747 141,167

Rash.nakn.utrĎ.obav.za refund on krditima (668 004) 160,100 0

Other expenses (66D) 78,947 16,970

1,680,423 1,180,369









11. NET INCOME PROPERTY VALUATION AND LIABILITIES

Thousands of RSD

Year 2010 Year 2009

Approaches on the basis of valuation:

- Loans and receivables (770) 6,902,660 4206756

- Securities (771) 0.00 50677

- Liabilities (772) 236,764 101651

7,139,424 4,359,084

Losses from the valuation:

- Loans and receivables (670) -2,532,320 -1,004,349

- Securities (671) -22,050 0

- Liabilities (672) -800,746 -567,443

- tangible assets received in lieu of debt settlement (673) 0 -12,820

-3,355,116 -1,584,612

Net income 3,784,308 2,774,472



16

12. INCOME TAX



a) Income tax components

Thousands of RSD

31. 12. 2010 31. 12. 2009

Current tax -610,478 -585,599

Deferred tax 2,860 1,290

-607,618 -584,309



b) Reconciliation of income tax, profit before tax and prescribed tax rates

Thousands of RSD

31. 12. 2010 31. 12. 2009

Profit before tax 6,198,450 6,163,772

Income tax calculated at a rate of 10% 619,845 616,375

Tax effects of expenses not recognized for tax purposes -1,870 6,721

.

Tax credits for capital expenditures -7,489 -22,268

Tax credits for employees hired on open-end basis 0 -15,229

Tax effect of income from dividends -8 0

Effects of changes in temporary differences on property and

equipment -2,860 -1,290

Other income is not taxed 0 0

607,618 584,309



v. Deferred tax liabilities

Thousands of RSD

31. 12. 2010 31. 12. 2009

Temporary differences in property, equipment and intangible

assets 6,874 9,734

Temporary differences arising on remeasurement of AFS

securities 2,347 3,569

9,221 13,303



g. Changes in deferred tax liabilities

Thousands of RSD

31. 12. 2010 31. 12. 2009

Balance at January 1 13,303 16,363

(Decrease)/increase in deferred tax liabilities based on:

- temporary differences in property, equipment and intangible

assets -2,860 -1,290

temporary differences arising on remeasurement of AFS

securities -1,222 -1,770

Balance at December 31, 2010 9,221 13,303









17

13. CASH AND CASH EQUIVALENTS



Thousands of RSD

31. December 2010. 31. December 2009.

In RSD:

- - gyro account (000) 3,106,903 7,398,331

- Cash in hand (001) 709,213 796,462

- Republic of Serbia treasury bills 0 1,539,075



3,816,116 9,733,868

In foreign currency:

- Foreign currency accounts with other banks (0500) 154,432 54,889

- Regular foreign currency accounts with foreign 939,422 786,931

banks (0501)

- Cash in hand (051) 923,861 1,517,097

2,017,715 2,358,917

5,833,831 12,092,785







In accordance with the National Bank of Serbia on mandatory reserves of banks with the NBS, the dinar

bank reserve requirement calculation basis:

- at a rate of 5% - the portion of dinar base comprised of the CSD;

- at a rate of 25% - on the part of the dinar base comprised of liabilities in RSD, foreign currency clause

indexed;

- at a rate of 25% - on liabilities in foreign currency from the foreign exchange deposits and loans.



Of calculated reserve requirements according to the calculation of 17 December 2010th years (based on the

average balance of deposits from novemra) amounted to 73,285,581 thousand (for the same period from

December 2009.: 7,567,587 thousand).



According to this calculation the bank was obliged to December maintain average daily balance of bank account

in the amount of calculated reserve dinar to the next calculation, ie up to 17.01.2011.



Bank during the period 18.12.2010 to 17.01.2011 on the bank account held by the average daily balance

above the amount calculated dinar reserve



The Bank in 2010 did not use the reserve funds for the purpose of maintaining liquidity.



The average interest rate on the dinar reserves allocated in 2010. amounted to 2.5% per annum.









18

14. REVOCABLE DEPOSITS AND LOANS

Thousands of RSD

31. December 2010. 31. December 2009.

In RSD:

- Liquidity surpluses deposited 0 300,000

with NBS (010)

- Placements with NBS arising from repurchase

transactions (013) 4,000,000 2,200,000

4,000,000 2,500,000

In foreign currency:

- Obligatory reserves held with NBS (060) 16,219,755 8,904,919

20,219,755 11,404,919



At 31 December 2010. year, funds in accounts at National Bank of Serbia has been deposited surplus liquidity.

The interest rate on deposit excess liquidity with the National Bank of Serbia in 2010. year ranged from 5.5% to

9% per annum.



Obligatory reserve a minimum reserve of foreign currency allocated in accordance with the National Bank of

Serbia on mandatory reserves of banks with the National Bank of Serbia (Official Gazette. Gazette

RS No. 12/2010 and 78/2010, which states that calculate the foreign currency reserve at a rate of 25% of the

average daily balance of foreign currency assets during the previous calendar month. National Bank of Serbia does

not pay interest on required reserve currency, the 01jula 2005.



At 31 December 2010. year, required reserves in the currency was in line with the National Bank.









15. RECEIVABLES ARISING FROM INTEREST, FEES AND COMMISSIONS, TRADE,

FAIR VALUE ADJUSTMENTS OF DERIVATIVES AND OTHER RECEIVABLES



Thousands of RSD

31. December 2010. 31. December 2009.

Interest receivables:

- In RSD 3,061,023 2,423,645

- In foreign currency 58,385 47,499

3,119,408 2,471,144



Allowance for impairment of interest receivables:

- In RSD -1,475,800 -1,116,246

- In foreign currency -34,838 -29,092

-1,510,638 -1,145,338





Fee and commission receivables in RSD 37,633 24,238

Allowance for impairment of fee and commission

receivables -17,342 -9,707

20,291 14,531



Receivables from selling tangible assets 49 49

Allowance for impairment of receivables from

selling tangibles: -43 -46

Net 6 3





19

16. LOANS AND DEPOSITS

In thousands of RSD.

31. December 2010. 31. December 2009.

Deposits (LDC 11+21)

Long-term deposits.- Banks. (LDC 111) 187 187

Long-term deposits - Customers. (LDC 113) - din 69 69

Short-term deposits.- Banks. (LDC 211) - Val 36,503,629 18,132,572

Short-term deposits - Customers (LDC 213) - Val 16,625 16,625

36,520,510 18,149,453

Allowance for impairment of deposit -187 -187

36,520,323 18,149,266

Loans (Kto 10 20)

Short-term loans::

- Banks (k.108800B) 9,608 9,608

- Customers (10d) 44,202,549 35,323,381

Long-term loans to customers in dinars 23,647,598 16,871,086

Short-term loans to customers in foreign currency 1,127,854 1,326,347

Long-term loans to customers in foreign currency 305,874 415,088

69,293,483 53,945,510

Allowance for impairment of loans -9,142,869 -7,640,306

60,150,614 46,305,204

Net 96,670,937 64,454,470



Short-term deposits in foreign currency to domestic banks were granted for the period O / N up to a year, at an

interest rate per annum from 0.5 to 5% annually. And to provide long-term deposits (13 months) interest rate ranged

up to 6 % per annum.



Short-term loans to banks in RSD, overnajt up to 7 days, were approved at an interest rate of 6.1 to 12% per year.



Short-term loans in RSD have been granted to legal entities and businesses up to 12

months with the prevailing nominal rates ranging from 6% to 29% per annum (effective

interest rate of 7% to 34%), and the long-term loans in RSD (indexed in foreign currency)

legal entities and entrepreneurs, mostly in the range of 5% -15% per annum (effective interest rate of 6.5% to 16.5%).



Nominal interest rates on short-term loans to legal entities in foreign currency, mostly ranged in

ranging from 4% to 15% per annum (effective interest rate in the range 4.5% -20%), and the

long-term loans to corporate customers in foreign currencies, mostly in the range of 4% to 12% pa

level (the effective interest rate in the range 4.5% -14%).



Entrepreneurs are granted loans under the conditions that apply to legal persons.



Short-term investments in RSD, individuals have been granted to the effective interest rate of 20.27% to

36.19% a year, a dinar investments in foreign currency, have been granted to the effective interest rate of 4.59

to 19.78% a year.



Short-term investments in RSD holders ragistrovanih farms, were approved with the effective interest rate of

15% to 29.46% a year.



Long-term investments in RSD have been granted to individuals with the effective interest rate of 23.14% to

36.13% (subsidized cash and purpose at a rate of 8.04%), and the dinar investments in foreign currency, the

effective interest rate of 4 , 66% to 18.93% god.išnje.





Long-term investments in RSD (in foreign currency), holders of registered polloprivrednih farms, were

approved with the effective interest rate of 4.71% to 17.89% a year.





20

17. SECURITIES (EXCLUDING SOPS. SHARES)

Thousands of RSD

31. December 2010. 31. December 2009.

Securities at fair value through profit and loss:



- shares of Agrobanka A.D., Beograd 160,421 80,404



Securities held-to-maturity:

In RSD:

- bills of exchange issued by other corporate

customers 3,749,033 3,552,081

Republic of Serbia treasury bills 627,062 845,677

- Bonds issued by other companies 15,197 15,197

Allowance for impairment -641,472 -614,499

3,749,820 3,798,456

In foreign currency:

- Foreign currency savings bonds 35,203 31,998

3,945,444 3,910,858









Changes in ispraekama erednosti securities erednosti are as follows:

In thousands RSD

2,010 2,009

At 1 January 614,499 420,668

Ispraeke during the year (Note 8) 141,691 448,735

Reversal of ispraeki (Note 8) -114,718 -254,904



At 31 December 641,472 614,499









21

18. EQUITY INVESTMENTS

(INTERESTS) Thousands of RSD

31. December 2010. 31. December 2009.

Shares that are not listed on the Stock Exchange 49,659 658,808

Investments listed on Stock Exchange 41,376 54,266

91,035 713,074

Allowance for impairment -19,795 -19,273

71,240 693,801



Provisions for equity refers to the devaluation of participation that is not listed on berzi.ObezvreĎivanje was based

on the estimates based on information provided by izdavoca shares and other findings.

Other investments in shares listed on stock exchanges are recorded at fair value. Review of fair value is done

periodically, and the effects of price fluctuations are directly reflected as changes in equity.







At 31 December 2010. the Bank has equity investments following legal entities.





In thousands



31. December 2010. 31. December 2009.



Equity investments up to 10%:

- Trţište novca a.d., Beograd 267 347

- Univerzal banka a.d., Beograd 11,357 21,097

- OTP banka Srbija a.d., Novi Sad 16,128 16,128

- Marfin Bank a.d., Beograd 115 115

- PB Agrobanka a.d., Beograd 50 57

- Hypo Alpe-Adria Bank a.d., Beograd, 0 986

- AMS Osiguranje a.d., Beogard 700 806

- Politika a.d., Beograd 13,026 15,076

- BetraTrans a.d., Beograd 57 57

- Šar holding 19,050 19,050

- Plava tačka a.d. – in liquidation 745 223

- Agroţiv a.d., Pančevo 0 609,593

61,495 683,535

Equity shares above 10%:

- AIK Savings and Credit Organization

(Štedno kreditna organizacija AIK,

Vranje) 29,080 29,080

- AIK Company 418 418



Small Business Development Center in

Niš 41 41

- AIK Invest d.o.o.- in liquidation, Niš 0 0

29,539 29,539

91,034 713,074









22

Participation Hupo Alpe Adria Bank was sold by value of 986 thousand RSD, and in the unsuccessful

reorganization Aroziva participation is canceled and returned to the previous status of receivables on credit

basis.









19. OTHER INVESTMENTS (kto 16 26)

Thousands of RSD

31. December 2010. 31. December 2009.

Receivables based on payments on guarantees,

bills of exchange and letters of credit

(K.163+ 263+265) 826,224 612,999

Short-term dinar placements with public entities.

(164 ) 861,867 2,619,430

Receivables from banks based citizen cheques 34,722 13,403

(1680_B)

Receivables from payment cards, not matured 3,114,764 3,498,315

(K.168006 + 168007)

Short-term dinar placements with corporate

entities (16,802 G) 0 310,404

Long-term dinar placements with public entities.

(K.16812.F) 730,743 994,928

Receivables from payment cards, matured (k.

1688.) 474,830 393,879

Other investments 33,694 40,867

6,076,844 8,484,225

Allowance for impairment

based on:

- payments on guarantees, bills of exchange -423,989 -446,543

and letters of credit. (k.1693, 2693)

- short-term dinar placements with public entities -16,183 -44,268

(1694 )

- receivables from banks based citizen cheques.

(16980.B) -888 -498

- receivables from payment cards, not matured -119,223 -93,341



23

(K.1698006. 1,698,007th)

- short-term dinar placements with corporate entities 0 -9,082

. (169802.G)

- long-term dinar placements with public entities -11,838 -16,814

. (k.169812.F)

- receivables from payment cards, matured (k. 16988.) -193,224 -116,778

- Other investments (169d, 269d) -56,286 -29,034

-821,631 -756,358



Net 5,255,213 7,727,867



Short-term investments in RSD, public enterprises from 861,867 million RSD were based on claims of the contract fee and

relate mainly to:

- DP Novi Sad - Gas for a total of 368,587 million RSD (11.5% one-time charges,

back in installments - the last in August 2011.)

- PUC HEATING ZRENJANIN totaling 217,153 million

RSD (11.5% one-time fees, return in installments - the last in August 2011.) - HEATING PUC PANČEVO a total of

97,262 million RSD (11.5% one-time fees, return in installments - the last in November 2011 . years);

- DEPARTMENT OF ROADS ŠAPCA a total of 79,979 million RSD (11.5% one-time fees, return in installments -

the last in December 2011.)

- GAS - FEROMONT AD for a total of 40,461 million RSD (fee 10% off, returning in installments - the latest in

March 2011.).

Long-term investments in RSD, public enterprises from 730,743 mln RSD claims of "Public Roads of Serbia":

- in the amount of 331,642 million RSD, according to the claims of the contract and loan agreement travel industry

businesses (loans matured 30.06.2010., interest rate 1.415%, konf.metod, monthly);

- in the amount of 399,101 million RSD, according to the claims of the contract and loan agreement travel industry

companies (based on reprogramming the 5 years, with the return in annual installments and the interest rate equal to

the quarterly BELIBOR increased by 4 percentage points annually);









24

20. FIXED ASSETS, INVESTMENT PROPERTY AND INTANGIBLE ASSETS







Thousands of RSD

Land and. Equipment and Invest. Total Intangible

Buildings other assets Property. assets

Acquisition value

Balance, 1 January 2010. The 579,874 849,322 522,580 1,951,776 79,993

Transfers 1,404,583 1,404,583

Increase 171,602 171,602 14,488

Disposals -2,264 -1,157 0 -3,421 0

Balance, 31 December 2010. The 577,610 1,019,767 1,927,163 3,524,540 94,481

Provisions for:

Balance, 1 January 2010. The 48,625 441,700 44,582 534,907 33,160

Amortization 6,584 120,163 6,794 133,541 15,938

Disposals -304 -596 -900

Transfers 0

Balance, 31 December 2010. The 54,905 561,267 51,376 667,548 49,098



Present value, 31 December 2010. g 522,705 458,500 1,875,787 2,856,992 45,383



Present value, 31 December 2009. g 531,249 407,622 477,998 1,416,869 46,833





At 31 December 2010. The Bank has no fixed assets encumbered by mortgage, to ensure regular repayment of borrowings.









25

21. OTHER ASSETS









Thousands of RSD

31. December 2010. 31. December 2009.

Other receivables: (03, 09, 304)

- Advances for current assets (k.030, 090) 5,604 5,504

- Advances for fixed assets (k.031) - 15,731 16,607

- Receivables from Beogradska Banka a.d.- in

bankruptcy. 92,300 92,300

- Tangible assets received in lieu of debt settlement

. (k.304) . 4,572,905 4,555,041

- Other receivables in dinars. 133,080 22,194

- Other receivables in foreign currency 2,906 5,522

4,822,526 4,697,168

Allowance for impairment of other receivables:

- Receivables from Beogradska Banka a.d.- in

bankruptcy. -92,300 -92,300

- Other receivables in dinars. (LDC 039309) -15,363 -8,454

- Other receivables in foreign currency. (LDC 099) -216 -1,470

-107,879 -102,224

Prepayments::

- Deferred interest receivables in

. dinars (190.191) - 137,775 44,178

- Prepaid interest on savings deposits

placed by retail customers (192) 193,624 1,680,736

- Prepaid rental expenses (194) 8,284 7,271

- Deferred receivables for interest accrued

in foreign currency (290) 1,235 5,608

340,918 1,737,793

net 5,055,565 6,332,737





The rest of the net assets Dinar funds accounted for 5,051,640 hillada RSD, the currency with 3.925 hil ^ ada CSD









26

22. TRANSACTION DEPOSITS



Thousands of RSD

December 31, 2010 December 31, 2009

In RSD:

- Banks and other financial institutions 201,817 239,496

- Public Enterprises 379,607 673,629

- Other companies 1,619,992 2,340,524

- Entrepreneurs 192,655 179,841

- Population 528,453 521,091

- Foreign legal entities 79 186

- Public Sector 126,943 108,084

- Other customers 191,522 116,048

3,241,068 4,178,899

In foreign currency:

- Banks and other financial institutions 16,063 294,416

- Public Enterprises 22,348 16,061

- Other companies 863,867 574,418

- Entrepreneurs 12,003 8,878

- Population 282,038 216,772

- Foreign legal entities 384 62,368

- Public Sector 9,486 346

- Other customers 75,368 11,451

1,281,557 1,184,710

4,522,625 5,363,609









On transaction deposits The Bank pays interest ranging from 3% to 12% per annum.



On sight deposits in RSD, public sector, the Bank does not pay interest. Also, the bank pays no interest in any

transaction in foreign currency deposits of the public sector, or foreign legal entities.





On sight deposits in RSD Bank pays interest at a rate of 3% per year.



Transaction deposits in foreign currencies are non-interest bearing.









27

23. OTHER DEPOSITS



The structure of deposits by sector and currency is shown in the following table:

Thousands of RSD

31. December 2010. The 31. December 2009. The

In Foreign. In Foreign

In RSD Currency. Total In RSD Currency Total

Savings deposits:

Population 3,172,335 59,186,594 62,358,929 560,989 35,267,962 35,828,951

Foreign individuals 299,470 533,861 833,331 116 456,011 456,127

3,471,805 59,720,455 63,192,260 561,105 35,723,973 36,285,078

Deposits from

of loans:

Banks and other financial

Organization 118,341 147,697 266,038 200 1,588 1,788

Other enterprises 469,979 202,879 672,858 314,108 175,694 489,802

Entrepreneurs 17,798 0 17,798 2,553 0 2,553

Population 644 846,243 846,887 1,440 945,828 947,268

Public sector 2,826 0 2,826 4,758 0 4,758

Other customers 2,045 0 2,045 0 0 0



611,633 1,196,819 1,808,452 323,059 1,123,110 1,446,169

Designated deposits:

Banks and other financial

Organization 8,631 16 8,647 1,475 498 1,973

Other enterprises 47,249 538 47,787 76,496 813 77,309

Entrepreneurs 12 906 918 9 1,045 1,054

Population 12,887 1,558 14,445 26,293 1,415 27,708

Foreign individuals 4 0 4 0 0 0

Public sector 693 0 693 1,405 0 1,405

Other customers 284 431 715 1,372 2 1,374

69,760 3,449 73,209 107,050 3,773 110,823



Other deposits:

Banks and other financial

Organization 5,830,433 1,114,902 6,945,335 4,489,575 138,012 4,627,587

Other enterprises 7,452,923 2,672,744 10,125,667 7,078,530 3,799,493 10,878,023

Entrepreneurs 19,129 7,986 27,115 22,953 6,465 29,418

Population 283 0 283 88 0 88

Foreign individuals 1,316 0 1,316 1,476 0 1,476

Public sector 1,220,244 39 1,220,283 4,551,151 0 4,551,151

Other customers 2,965,242 306,646 3,271,888 462,094 50,616 512,710

17,489,570 4,102,317 21,591,887 16,605,867 3,994,586 20,600,453

Total other deposits 21,642,768 65,023,040 86,665,808 17,597,081 40,845,442 58,442,523









28

The effective interest rate on savings deposits of individuals amounted to savings of EUR mostly from 0.5% to 1.2% (2% early this

year), a savings of CHF was 1.4% by October 2010, and then reduced to 0.15% annually, and savings in U.S. dollars was 1.8% by

October 2010 and then decreased to 0.25% per year.



The effective interest rate on term deposits in the currency up to one year ranged from 2% - 7.25% per annum on deposits in EUR, a

1.5% -2% annual savings in CHF, as well as a , 9% -2.6% per annum on deposits in U.S. dollars.





The effective interest rate on term deposits in RSD to one year ranged from 6% to 12% per annum.



The effective interest rate on term deposit in CURRENCY over one year (from 13 to 36 months) ranged from 6.5% to 8% per

annum on deposits in EUR.



The effective interest rate on term deposits in RSD over a year (at 13 and 15 months) was 14% and 15% per annum.



The effective interest rate on a dedicated local and foreign currency deposits (collateral for the approved loans), ranged mainly

from 0.5% to 8% per annum in USD (a very interest-free collateral, as well as special purpose deposit with the effective interest

rate of 9.06% per year-saving from last year with the payment of interest in advance, which is the portion of separated and on the

2010 year), or 0.5% -15% per year in rates.



Foreign currency deposits for cover for the transfer of non-interest bearing.



Short-term dinar deposits from banks deposited for periods of one to 12 months at an interest rate that ranged

annually from 4.5% to 12%.



Short-term dinar deposits from public enterprises have been deposited for a period of one to 12 months at an interest

rate that varied annually from 8% to 14.4%.



Short-term dinar deposits from the public sector have been deposited at the time of the adapted version to 12 months

at an interest rate that ranged annually from 8.1% to 11.5%.





Other deposits presented per separated products, maturity and currency:

Thousands of RSD

31. December 2010. The 31. December 2009. The

Foreign Foreign

In RSD currency. total In RSD currency. total

Savings deposits:

(LDC 402, 502)

Short-term 360,828 33,602,202 33,963,030 561,105 34,332,624 34,893,729

Long-term 3,110,977 26,118,253 29,229,230 0 1,391,349 1,391,349

3,471,805 59,720,455 63,192,260 561,105 35,723,973 36,285,078

Deposits -

collateral against

loans approved:

(LDC 403, 503)

Short-term 148,299 178,713 327,012 41,489 275,464 316,953

Long-term 463,334 1,018,106 1,481,440 281,570 847,646 1,129,216

611,633 1,196,819 1,808,452 323,059 1,123,110 1,446,169

Special purpose

deposits: (kto

404, 504)

Short-term 69,760 3,449 73,209 107,050 3,773 110,823

69,760 3,449 73,209 107,050 3,773 110,823

Other deposits:

(LDC 405, 505)

Short-term 17,434,006 3,986,269 21,420,275 16,585,314 3,946,642 20,531,956

Long-term 55,564 116,048 171,612 20,553 47,944 68,497

17,489,570 4,102,317 21,591,887 16,605,867 3,994,586 20,600,453

total 21,642,768 65,023,040 86,665,808 17,597,081 40,845,442 58,442,523



29

24. BORROWINGS

Thousands of RSD

December 31, 2010 December 31, 2009

In RSD:

Short-term borrowings:

- Hypo Alpe-Adria Bank a.d., Beograd 2,109,964 1,917,776

- Raiffeisen Bank a.d., Beograd 0 480,000

- Erste Bank a.d., Novi Sad 0 380,000

- Banca Intesa a.d., Beograd 0 920,000

2,109,964 3,697,776





Ost.finansijske obav. (LDC 409, 509) 10,195 91,445

total 2,120,159 3,789,221



Short-term borrowings in RSD from the Hypo Alpe Adria Bank is taken within 14 days, with interest of

5.5% per year.









25. PROVISIONS

Thousands of RSD

December 31, 2010 December 31, 2009



Provision for litigation 0 338,794

Provisions for losses on off-balance sheet items 651,665 484,069

Provisions for retirement benefits and jubilee

awards 13,515 11,781

Other provisions 0 6,970

665,180 841,614





Movements in provisions during the year,: Thousands of RSD

Provisions for

Provisions for Retirement

Losses on Off- Benefits and

Provisions for Balance Sheet Jubilee Other

Litigations Items Awards Provisions Total

Balance, 1 January 2009. 338,794 852,222 9,886 3,960 1,204,862



New provisions (Note.8 and 10) 0 354,273 2,444 3,010 359,727

Discharged (Note 8) 0 -722,426 -549 0 -722,975

Balance, 31 December 2009. 338,794 484,069 11,781 6,970 841,614



Balance, 1 % year 2010 338,794 484,069 11,781 6,970 841,614

New provisions (Note.8 and 10) 0 524,500 13,515 0 538,015

Discharged (Note 8) -338794 -356,904 -11,210 -6970 -713,878

Severance payments paid by -571

book. -571

Balance, 31 December 2010. The 0 651,665 13,515 0 665,180



In the course of 2010 abolished the provision in dispute bailiffs in income because the company AIK NIS, Ltd withdrew the

complaint.









30

26. OTHER LIABILITIES

Thousands of RSD

December 31, 2010 December 31, 2009

Other liabilities:

- accounts payable in dinars (430 42,349 35,910

- advances received in dinars (431) 1,136 27,508

- liabilities for issued guarantees and other sureties

(433) 320 325

- liabilities arising from assets managed in the name 6,744 8,638

and for the account of customers. (436).

- liabilities arising from ceded receivables (4374) - 0 208,281



- Primlj.sreds.od States for kam.po 1,095,060 0

subv.stamb.kred. (437,709), Mr.

- Other liabilities to employees (445) - din 68 76,416

- other liabilities in dinars, (437d, 438.439) 65,874 73,476

- other liabilities in foreign currency (53) 966 1,169

1,212,517 431,723

Accruals:



- accrued interest payable in dinars. (490) 89,363 36,437

- Razg.ost.Trosk.budug.perioda (491) - din 4,345

- accrued interest payable in foreign currency.

(590) - 740,036 135,544

- interest charged in advance.

(492d) 146,075 179,976

- accrued fee and commission income

(492d) 273,494 377,000

- interest on Republic of Serbia bills charged in

advance 17,504 21,837

- fee on guarantees issued paid in advance (494) 42,804 13,937

1,313,621 764,731

total 2,526,138 1,196,454









31

27. EQUITY





The Bank's capital consists of: equity capital, reserves, share premium and accumulated profits.







Thousands of RSD

December 31, 2010 December 31, 2009

Share capital:

Ordinary shares 15,857,218 15,857,218

Preferred shares 2,375,423 2,375,423

18,232,641 18,232,641

Share premium and 7,157,924 7,157,924

Reserves from profit 13,165,376 8,091,898

Revaluation reserve 21,353 32,339

Unrealized losses on securities available-for-sale -229 -223

Retained earnings:

- Previous years 0 0

- Current year 5,590,832 5,579,463

5,590,832 5,579,463

44,167,897 39,094,042





Shareholder structure



Shareholder structure as at 31 December 2010. year, with the participation of over 1%, is shown in the following

table:



Share capital %

Participat

in thousands. RSD ion

AGRICULTURAL BANK OF GREECE 3,800,500 20.84

925 - UNICREDITBANK OF SERBIA-VIENNA

476KFN150714P 992,422 5.44

NATIONAL BANK OF GREECE SA, GREECE 902,793 4.95

Venturer MANAGEMENT AG 664,687 3.65

UNICREDIT BANK SERBIA JSC-476K119107 630,530 3.46

EPS BELGRADE 810,084 4.44

EAST CAPITAL ASSET MANAG. 539,469 2.96

AIDA Asset Association AKTINGESELLSCHAFT 525,770 2.88

ZB INVEST DOO UPR.INVEST.FOND. 493,136 2.70

HUGO 345K000004-ALPE-ADRIA-BANK AD BEOGRAD

CUSTODY ACCOUNT- 519,235 2.85

E Templeton. M. SMALL CAP FUND 399,714 2.19

Franklin Templeton INVESTMENT 377,823 2.07

SEE CAPITAL GROUP AG 344,991 1.89

SUNOKO DOO NOVI SAD 324,115 1.78

Globos osiguranje ad Beograd 341,939 1.88

Other 6,565,433 36.02

Total 18,232,643 100.00



Capital adequacy and performance indicators prescribed by the Law on Banks



The Bank is required to maintain minimum capital adequacy ratio of 12% established by the National Bank of

Serbia.



At 31 December 2010. year, according to the calculation of the Bank, all indicators of business, or the scope

and structure of risk assets were within their prescribed.





32

28. OFF-BALANCE SHEET ITEMS Thousands of RSD

December 31, 2010 December 31, 2009

Managed on behalf of third parties 652,789 587,695

Commitments and contingent liabilities 15,090,839 11,260,557

Accepted sureties for liabilities 2,058,170 2,517,822

Other off-balance sheet items 95,781,854 75,184,840

113,583,652 89,550,914



a) Managed on behalf of third parties

Managed funds in dinars

- Short term 114,002 111,023

- Long-term 538,787 473,182

Managed funds in

foreign currency: 0 3,490

652,789 587,695

b) Contingent liabilities assumed

Financial guarantees:

- in RSD (LDC 9100) 3,581,956 3,304,352

- In foreign currency (9150) 2,116,006 1,874,735

Performance guarantees:

- In RSD (LDC 9101) 5,651,370 3,561,756

- In foreign currency (9151) 141,153 117,709

Issued sureties and acceptances (9102) 18,938 16,105

11,509,423 8,874,657

Uncovered letters of credit (LDC 9155) 429,544 291,880

Undrawn credit lines (LDC 913) 3,142,737 2,084,884

15,081,704 11,251,421

Own a guarantee (LDC 914) 9,135 9,136

15,090,839 11,260,557



Irrevocable commitments relating to the unused loan commitments that can not be canceled

unilaterally to: overdrafts, revolving loans to businesses, multi-purpose revolving loans, buying and

selling foreign exchange from banks for ^ ard transactions, and other irrevocable commitments.

Irrevocable commitments generally have fixed dates when stress or other provisions relating to

expiration. Since irrevocable commitments may expire without withdrawal of credit by customers, the

total contracted amount does not necessarily represent future cash requirements. The Bank monitors the

maturity of the assumed liabilities based on irrevocable unused loans for long-term commitments have a

greater degree of credit risk than short-term commitments.



December 31, 2010 December 31, 2009

c) Accepted Sureties for Liabilities

Received a guarantee to the Bank (LDC 911) 0 0

Securities received as collaterals (LDC 932) 2,058,170 2,517,822

2,058,170 2,517,822

d) Other off-balance sheet items

Suspended interest (LDC 930) 145,082 140,712

Pledges on movables received as

collaterals (LDC 9330) 19,748,847 5,654,916

Received mortgages (LDC 9331) 69,829,121 64,011,220

Undrawn revocable credit

arrangements. (LDC 9333) 4,134,922 3,835,764

Other 1,923,882 1,542,228

95,781,854 75,184,840





33

29. RELATED PARTIES







a) Business relationships with members of the Board

Business relationships and relation with members of the Board are based on the usual

market conditions

in thousands

(RSD.) (RSD.)

Executive compensation 2010 2009

Members of the Executive Board -60,208 -65,332

Board Members -75,392 -57,961

Agg. Executive compensation -135,600 -123,293





Income. (Rash) Income. (Rash)

Other relationships with members of the Board 31.12.2010 31.12.2009 2010 2009

Overdrafts, credit 108 30

Cards, cash and consumer loans 9,208 940 135

Mortgage loans 11,599 3,090 4,298 241

Deposits 318,060 241,748 -7,712

Other liabilities 6,936 11 -17,055 -314

Total relationships with members of the Board 345,803 245,897 -12,757 -7,620





5) The transactions with related parties

У their daily business, the Bank realized a business transaction with shareholders and other related parties, under

normal market conditions.

The following table shows the status of claims and liabilities arising from business relationships with related parties as

at the balance sheet date:

gross exposure

Balance sheet sheet

31. December 2010. The gross exposure exposure Total Liabilities

Staff 330,677 52,997 383,674 414,361

Other individuals 86,826 46,185 133,011 1,012,484

Corporates * 409,659 1,127,679 1,537,338 206,755

827,162 1,226,861 2,054,023 1,633,600

31. December 2009. The

Staff 225,658 71,576 297,324 439,572

Other individuals 92,011 50,369 142,380 644,759

Corporates * 284,833 521,376 806,209 63,577

602,502 643,321 1,245,913 1,147,908









34

AFFILIATED COMPANIES

Off-balance

Balance sheet sheet

31. December 2010. g gross exposure exposure Total Liabilities Income Expenses

FSH MAHIPROTEIN CLOSED AD

POZEGA 0 500 500 3,825 784

MK COMMERCE DOO NOVI SAD 0 73,033 73,033 7 18,087 9,932

MK GROUP LTD BELGRADE 211,001 897,446 1,108,447 6,711 46,370 45,490

AGROUNIJA AD INVIJA 0 149,843 149,843 11 1,902 105

SUNOKO DOO NOVI SAD 0 0 0 158,504 65,347 26,899

NEW AD VOJVODINA MILOŠEVO 52,749 0 52,749 4 8,112 2,438

AD GRANEHPORT PANCEVO 0 0 0 16,376 38,185 9,851

DILL MAH DOO BEOGRAD 87,800 527 88,327 1,786 26,981 3,372

PARMONS DOO NOVI SAD 38,901 0 38,901 0 6,932 0

FLOP SZR SABAC 212 289 501 1 62 -8

GAVRILOVIC ENGINEERING CACAK 399 657 1,056 214 76 9

Radulaška DRAGAN, SZTR

Radulaška BECEJ MAIN 76 209 435 644 216 159 69

SINGLE DOO NIS 105 0 105 33 109 31

ICC PROFESSIONAL LLC 105 0 105 0 607 0

EMCO LTD VALJEVO 3,936 332 4,268 0 1,095 26

MDM DRINA DOO BELGRADE BATAJNICA 1,859 0 1,859 0 503 832

PANONIJA COMMERCE 5,262 0 5,262 4,508 1,656 788

MAKEL ELECTRIC LTD PANCEVO 0 0 0 5,532 235 0

Vujanovic-PETROVIC GROUP LTD

NOVI SAD 6,882 3,802 10,684 24 63 192

ANVELA SUPER MARKET 239 815 1,054 1 206 44

OTHER 0 0 0 9,002 1,262 0

total 409,659 1,127,679 1,537,338 206,755 218,733 100,070



31. December 2009. g

ICC PROFESSIONAL LLC 1,063 0 1,063 0 282 356

ANVELA SUPER MARKET 608 351 959 1 119 13

FLOP SZR SABAC 3 450 453 2 69 24

SZ OFFICE BELGRADE 2,048 0 2,048 2 1,370 150

SINGLE DOO NIS 306 0 306 74 163 23

EMCO LTD VALJEVO 4,055 0 4,055 122 1,002 2

PROINKOM BELGRADE 0 0 0 159 9 107

"ATRIUM LLC 0 0 0 191 8 196

MASINAC-LEADER 0 0 0 212 50 53

MILDEPROM DOO NIS 0 0 0 251 24 3

MASINAC-AGENCY ACTION 0 0 0 258 62 22

MK COMMERCE DOO 95,894 44,003 139,897 281 22,061 4,316

Vujanovic-PETROVIC GROUP, USA 0 0 0 302 2 0

AD GRANEHPORT PANCEVO 102,989 5,000 107,989 1,793 13,369 3,959

BDD M & V INVESTMENTS AD 0 0 0 1,832 7 2

SUNOKO DOO NOVI SAD 0 0 0 3,841 30,801 77

MK GROUP LTD BELGRADE 5 470,604 470,609 7,027 21,594 58,619

MK MOUNTAIN RESORT 0 0 0 4,661 218 11,272

MAH DILL AD BEOGRAD 77,860 468 78,328 10,724 12,644 11,445

MAKEL ELECTRIC LTD PANCEVO 0 0 0 31,268 510 41

OTHER 2 500 502 576 59,636 12,581



total 284,833 521,376 806,209 63,577 164,000 103,261





35

30. CREDIT RISK



30.1. The maximum exposure to credit risk

The table below represents the maximum credit risk exposure collateral or other credit rating increase

credit securities. Exposure is based on the carrying value of the balance sheet.





Thousands of RSD

31. December 2010. 31. December 2009.





Interest, fee and commission receivables 3,157,039 2,495,424

Loans and advances to banks 36,683,764 18,149,197

Loans and advances to customers (including

credit cards) 75,282,020 62,429,981

Securities at fair value through profit and loss 160,421 80,404

Securities held-to-maturity in dinars 3,764,231 4,444,952

Securities available-for-sale and equity

investments (interests) 91,034 713,074

Other balance sheet assets 2,957,489 146,935

122,095,998 88,459,967





Guarantees and sureties 11,509,423 8,874,658

Letters of credit without coverage 429,544 291,881

Irrevocable loan facilities 3,142,735 2,094,022

Undrawn revocable loan facilities 4,134,922 3,826,625

Maximum gross exposure

off-balance sheet items 19,216,624 15,087,186









In the case of financial instruments at fair value (market value), indicated amounts represent the current credit

risk exposure, but not the maximum risk exposure that could arise in the future as a result of changes in value.



Concentration of risk is managed by setting limits in relation to individual clients, as well as the geographic

and industrial diversification.



The following table shows the credit risk to groups of customers. Gross balance sheet assets and off-balance

sheet items for which the established credit risk is presented without lowering effects of risk on the basis of

collateral or other hedging instruments.









36

30.2. On-balance sheet credit exposure

risk Not

Impaired Not

Loans, Impaired

Individual (portfolio Loans,

Individually Allowance based (portfolio Portfolio Total

Individually Impaired for allowance) based Based Allowance

Neither due Impaired and Impairmen not allowance) allowance for for

PORTFOLIO - 31 12 2010 nor impaired not Matured Matured t Matured Matured Impairment Total Gross Impairment Total Net



1. BANK 30,142,876 6,687,724 14,256 127,097 36,844,856 127,097 36,717,759

2. COMPANY 2,770,665 462,972 15,838,488 9,188,646 49,229,651 4,993,739 1,919,217 73,295,515 11,107,863 62,187,652

3. ENTREPRENEURS 8,409 184,363 46,540 480,084 27,324 25,960 700,180 72,500 627,680

TOTAL Corpor: 32,913,541 7,159,105 16,037,107 9,362,283 49,709,735 5,021,063 1,945,177 110,840,551 11,307,460 99,533,091

4. Retail STANDARD LOANS 7,691 259 4,633,183 137,835 164,748 4,778,709 165,007 4,613,702

5. Retail MORTGAGE LOANS 28,702 8,738 11,204 1,627,146 10,495 43,212 1,675,081 54,416 1,620,665

6. Retail AGRICULTURAL LOANS 5,275 961 3,117 435,175 59,693 173,031 501,104 176,148 324,956

7. Retail CREDIT CARDS 3,108,298 465,862 308,379 3,574,160 308,379 3,265,781

8. Retail CURRENT ACCOUNT OVERDRAFT 201,176 73,898 41,424 275,074 41,424 233,650

9. Retail OTHER 196,933 188,878 2,187 743 348 199,863 189,226 10,637

TOTAL RETAIL: 33,977 214,323 203,458 10,007,165 748,526 731,142 11,003,991 934,600 10,069,391

Raspoloz.za securities sales and participation 160,422 91,034 - 19,795 - - - 251,456 19,795 231,661



Total 33,073,963 7,284,116 16,251,430 9,585,536 59,716,900 5,769,589 2,676,319 122,095,998 12,261,855 109,834,143





NEOBEZVR. (33,073,963)

89,022,035

(122,095,998)



30.2. Balance sheet exposure to credit risk

Gross assets Correction Gross assets Correction in thousands

Neither due Individually Impaired. Individually. Collective allowance. Collective Total Total Net

not not

PORTFOLIO - 31 12 2009 nor impaired Matured. Matured Impaired Matured. Matured allowance. Gross correction 31.12.2009





1. BANK 8,054,659 10,119,214 105,201 122,969 - - - 18,279,074 122,969 18,156,105

2. COMPANY 1,110,168 2,133,375 12,929,364 7,832,652 41,060,605 2,096,384 1,540,460 59,329,896 9,373,112 49,956,784

3. ENTREPRENEURS - 66,657 158,112 67,138 332,518 21,413 19,673 578,700 86,811 491,889

TOTAL Corpor: 9,164,827 12,319,246 13,192,677 8,022,759 41,393,123 2,117,797 1,560,133 78,187,670 9,582,892 68,604,778

4. Retail STANDARD LOANS - 34,491 10,426 21,513 3,073,297 70,045 89,624 3,188,259 111,137 3,077,122

5. Retail MORTGAGE LOANS - 7,944 6,563 4,843 1,447,448 6,400 23,506 1,468,355 28,349 1,440,006

6. Retail AGRICULTURAL LOANS - - - - 549,956 27,457 131,306 577,413 131,306 446,107

7. Retail CREDIT CARDS - - 1,431 1,431 3,491,378 378,796 201,512 3,871,605 202,943 3,668,662

8. Retail CURRENT ACCOUNT OVERDRAFT - - - - 207,708 48,021 26,977 255,729 26,977 228,752

9. Retail OTHER - - 193,220 184,131 1,715 2,927 929 197,862 185,060 12,802

TOTAL RETAIL: - 42,435 211,640 211,918 8,771,502 533,646 473,854 9,559,223 685,772 8,873,451

Raspoloz.za securities sales and participation 693,801 19,273 - 19,273 - - - 713,074 19,273 693,801



Total 9,858,628 12,380,954 13,404,317 8,253,950 50,164,625 2,651,443 2,033,987 88,459,967 10,287,937 78,172,030

37

30.2. Off-balance

exposure to credit

risk

31. December of 2010. 31. December 2009.

Off-balance sheet items Total % Total %

Exposure Provisions Risk Exposure Provisions Risk



Legal entities 14,946,442 648,343 4.34% 11,119,673 481,656 4.33

Entrepreneurs 138,082 3,322 2.41% 84,691 2,413 2.85

Individuals 4,132,100 0 0.00% 3,882,822 0 0.00

Total off-balance 19,216,624 651,665 3.39% 15,087,186 484,069 3.21









30.3. Individual and group impaired loans and advances to customers by segment, according to IAS



The invalidation of the claims made on the basis of credit risk, provided by the sst INDIVIDUAL assessment looks at each claim, and the group estimates are determined

by the average credit risk of devaluation.



The good assets categorized as receivables from customers in which:

- Estimated financial condition as satisfactory or does not indicate a significant deterioration in the future although there are some problems in the business.

- where no and do not expect major problems in the collection,

- claims secured by a first class security services,

- claims provided adequate means of security,

- Receivables from customers in which the index of total debt is less than 0.85%, and - potraţ.od debtor

liabilities are settled, and exceptionally with no lag longer than 60 days.



The risk assets are classified as receivables due from the debtor:

- Whose financial situation is not satisfactory, or are the problems in business - the cash flows are not

adequate and there is no maturity match of assets and liabilities,

- their claims are settled with a lag over 61 days but less than 180 days

- and Receivables. of illiquid and insolvent debtors and debtors who do business with the loss.



The bad assets are categorized claims of the debtor:

- in liquidation or bankruptcy;

- claims on debtors who settle their obligations with lag longer than 181 days

- claims with dubious or controversial legal basis,

- proceeds paid by the Bank potraţibanja not alienate, or put into the business within one year from the date of acquisition, and receivables for which collection is very problematic

38

30.3. Individual and group impaired loans and advances to customers by segment, according to IAS - continued

in thousands

CATEGORY BANK Corporates ENTREPRENEURS Retail TOTAL



Gross Allowance for Gross Allowance for Gross Allowance for Gross Allowance for Gross Allowance for

31. 12. 2010. Balance Impairment.. Balance Impairment.. Balance Impairment.. Balance Impairment.. Balance Impairment..

Pass



CATEGORY A 6,574,530 0 16,172,648 322,329 353,798 6,575 8,355,890 82,080 31,456,866 410,984

CATEGORY B 28,112 338 21,539,555 779,421 22,394 631 731,674 30,594 22,321,735 810,984

6,602,642 338 37,712,203 1,101,750 376,192 7,206 9,087,564 112,674 53,778,601 1,221,968

Assets: 0 0

CATEGORY V 426 195 16,115,834 670,293 73,461 1,551 285,835 42,498 16,475,556 714,537

CATEGORY G 2,016,492 75,457 44,101 2,519 494,486 137,232 2,555,079 215,208

426 195 18,132,326 745,750 117,562 4,070 780,321 179,730 19,030,635 929,745



Substandard Assets: 0 0

CATEGORY D 126,564 126,564 14,743,703 9,260,363 206,426 61,225 1,136,106 642,196 16,212,799 10,090,348

Assets that

Classification. 6,729,632 127,097 70,588,232 11,107,863 700,180 72,501 11,003,991 934,600 89,022,035 12,242,061





122,095,998 Gross Total

undue

33,073,963 neobezvredjeni

89,022,035 impaired

31. 12. 2009

Pass



CATEGORY A 9,823,766 67 7,949,678 245,749 295,607 6,061 6,924,653 65,284 24,993,704 317,161

CATEGORY B 17,560 12 22,252,159 784,498 3,960 145 925,359 31,150 23,199,038 815,805

9,841,326 79 30,201,837 1030247 299,567 6206 7,850,012 96434 48,192,742 1,132,966

Assets:

CATEGORY V 2 2 13,123,114 385,176 54,997 1,552 418,601 53,736 13,596,714 440,466

CATEGORY G 2,658,105 940,107 196,736 56,861 453,759 118,444 3,308,600 1,115,412

2 2 15781219 1325283 251733 58413 872360 172180 16905314 1,555,878



Substandard Assets:

CATEGORY D 383,087 122,953 12,255,945 7,036,790 27,400 22,192 836,851 417,158 13,503,283 7,599,093

Assets that

Classification. 10,224,415 123,034 58,239,001 9,392,320 578,700 86,811 9,559,223 685,772 78,601,339 10,287,937 ^









39

Default in Collection of Matured

30.4. Balance Sheet Assets

in thousands



Due assets as of 31.12.2010. The 30 days from 31 to 60 from 61 to 90 from 91 to 180 from 181 to 360 from 1 to 5 years over 5 years Total

Loans to legal entities 2,260,478 1,730,361 465,082 1,873,283 2,283,627 9,984,249 190,934 18,788,015

Loans to entrepreneurs 4,699 455.09235 1,050 1,025 3,238 185,849 42.058 196,360

Loans to individuals 39,808 17,246 11,258 25,996 36,497 90,081 4528.146 225,414

Payment Cards 158,066 13,980 9,982 32,428 77,421 183,252 213.64 475,343

Other investments 58,850 8740.5805 4,701 2,888 15,529 320,497 167,727 578,933

Guarantees and backing at the expense of the bank 12,648 0 7,641 55,166 84,164 578,091 0 737,711

Notes and bonds 281,821 99710 0 8,397 1,000 600,095 28,222 1,019,245

Balance due as of 12/31/2010 g. 2,816,371 1,870,493 499,714 1,999,184 2,501,477 11,942,114 391,666 22,021,019

Than that covered by mortgage and deposit 1,081,483 304,810 324,461 1,292,358 1,765,384 6,926,943 29524.09 11,724,963

% Coverage 38.40% 16.30% 64.93% 64.64% 70.57% 58.00% 7.54% 53.24%

N

D A AND A C D E HE

from 31 to from 91 to from 181 to

Due assets as of 31.12.2009. 30 days 60 from 61 to 90 180 360 from 1 to 5 years over 5 years Total



Loans to legal entities 2,531,323 303,773 441,316 723,095 4,391,671 5,183,017 199,675 13,773,870

Loans to entrepreneurs 4,502 47 1,082 41885 111356 7,421 166,293

Loans to individuals 22,004 12,776 9,137 18,901 22,950 35,026 97 120,891

Payment Cards 187,984 16,352 11,499 27,533 58,785 93,673 395,826

Other investments 134,768 937 20,366 5,332 17349 37,962 142765 359,479

Guarantees and backing at the expense of the bank 9,084 165 133,460 67987 63,990 323932 598,618

Notes and bonds 3,550 7,283 137045 477,708 15,197 640,783

Balance due as 31.12.2009 2,893,215 334,050 616,860 892,016 4,803,146 6,158,739 357,734 16,055,760

Than that covered by mortgage and deposit 1,710,674 257,726 356,035 766,258 2,828,450 3,813,784 9,732,926

% Coverage 59.13% 77.15% 57.72% 85.90% 58.89% 61.92% 0.00% 60.62%







The total amount of loans due at the end of 2010 amounted to 22,109,954 thousand and the same, compared to the year 2009, in absolute terms increased by more than 6 billion

RSD, or 37.71%



Compared to the year 2009 has been increased and the amount due loans are secured by mortgages - in the absolute amount of approximately 2 billion



It is notable that in two consecutive years have seen a shift in the distribution of delay, which is justified if we take an environment in which banks are operating, as well as

problems that include the real sector, which are largely dependent on global economic crisis. The study notes that in 2010. was dominated kašnena ranging from 1 to 5 years.

Such developments are not surprising because the activation and implementation of security requires a certain time limits.







40

30.5. The fair value of collateral

Thousands of RSD

31. December 31. December

2010 2009

Deposits to secure placements 5,244,204 3,554,729

Received a mortgage to secure loans 28,266,254 24,128,778

Guarantees and sureties collateralizing liabilities 0 0

Pledges in shares collateralizing placements 2,058,171 2,517,824





Bank as a mortgaged property whose value is taken, the assessment authorized appraiser, must be in ratio

of 1 to 1.1 and more than the ranking.



Properties used as collateral are living spaces, family and residential buildings, office buildings, business premises

and land depending on location and future investments namene.Kod corporate focus is on: business premises, business

premises and land (agricultural and graĎebinskom ) and for loans to households emphasis is on residential premises

(flats, family houses) built or under construction when the same item purchase from the Bank loan.





In taking the pledge of securities, The Bank monitors the price of securities used as collateral security. The value of

the collateral in the actions taken with the same value underpriced by at least 30% of the price at which it traded on

the Exchange on the day of contracting the pledge.









30.6. Restructured loans



Restructuring of loans are made to borrowers who, due to deteriorating financial condition are unable to regularly

pay their debts to the Bank, but with the immediate acceptance of the financial consolidation of the debtor.



Agreement on the restructuring of loans significantly change conditions compared to the previous placement and all

claims of the debtor shall be replaced with a new placement. Substantial changes in conditions considered in

particular: the extension of principal or interest payments, reducing interest rates, changes in valuation methods.

Restructuring of investments acceptable to the Bank only if the loans that are otherwise difficult to be collected, and

the restructuring of loans by financial consolidation program allows you to within an acceptable to the Bank,

substantially improving the financial situation of the debtor, by a high security payment loans in the agreed amount

and in new maturities, additional collateral in the form of guarantors - disburser, pristupioca debt or pledge of assets

and mobile - fixed the debtor or third parties, and improving asset quality, and thus affect the credit ratings from the

standpoint of potential risks, the recovery of loans and restructuring of the rest.





During the restructuring of loans the Bank made a financial analysis of the debtor and if it estimates that the borrower

after the loan restructuring generate cash flows that will be sufficient to repay principal and interest shall be decided

on the procedure of restructuring loans.

During 2010, there were no restrukturinja placement.









41

30.7. Tangible assets acquired from the collection of receivables





Initial state 01.01.2010.g. materijlanih shares acquired collection of claims from previous years amounted to 4,555,042. dinaraa

thousands of which is in the buildings and land 4,552,023 thousand in movable assets (7 cars) 3018 thousand.



1) In 2010, the bank sold the material values as follows:

- Objects taken from the Universal Holding knjig.vrednosti 142,137 hill.din.što is 1.5 million. EUR. Sold for approximately

2.8 million.

- Ugost.turist.preduz objects. SPLIT EČKA books, vred.142.137 hilj.din.što is 1.5 million. EUR, were sold for approximately

1.7 million.

- Polj.zemljište downloaded from AGROSTAN a PLUS N. SADm kljig.vred. 285,955 hilj.din.što is 2.96 m EUR. Sold for

approximately 4 million.



2) Part of the material assets acquired collection of claims in the previous year, the bank reclassified to investment property,

issued by the rental income and gains, which are:

- Objects taken from''TRANSPORT''IMPEKS NIS, the location of 12th February bb, Nis, in the amount of 617,165

thousand. Which is 6.5 mln EUR, a facility''and''SUPERMARKET PEVAC in attractive location

у ul.Vojvode Muscles 36 Nis into valuable. 69.229 hill.din.što as a hill.EUR 734.4.

- Objects taken from''RODI9 M & B INVEST Novi Sad,''''ELNOS Sentandrejski time - amounting to 245 604 hill

din.

- Objects taken from''STOTEKS and Novi Sad, in the amount of 472.584 hill. din.



3) in 2010. year ^ bit on the activities of women naplatei claims preubimanjem material values as follows:

- KERI Kesen and administrative buildings in Vrbas from FIGRAD in the value of 231.330 hill. Din.što is 2.332 m EUR.

- Office building-market Odzaci of FIGRAD in the value of 32,002 thousand. What is 322.6 hill.din.

- The building of the textile industry in Prijepolje of Lj Miodragovića, worth hill.din 2188. Which is 21.5 thous.

- Apartment in ul.Teodora Dreiser in Belgrade (HABIT FARM-A) in the value of 116,189 is 1.1 million hilj.din.što. EUR.

- Residential and commercial building from Luton to Belgrade Duro Jaksic No.8 into valuable. 253,504 hill.din. and 2.4 million.

- ALEXANDER''Hotel''in Vrnjacka Spa of (product trade finans,) in a hard. of 295,755 thousand. and 2.8 million.



- Njiva Jakovci 2 acres and 8 acres of EUROLUKSPETROL ELP-16 in the amount of 134,327 hilj.din.što is a 1.27 m EUR. -

Form''of''Krčevina EUROLUKSPETROL ELP-15 in the amount of 210,779 thousand. What is a 2.0 m EUR.

- Residential and commercial building''Lake''Ţunji KNI9, amounting to 162,218 thousand. Which is 1.25 million. EUR.

- Posl.objekat in Drajzera, 27, Belgrade, (of Habit farm) worth 316,880 hill. Din. Which is 2.98 m EUR.

- Posl.zgrade''Vit Bel''NIŠ, in Nis, worth 114,680 thousand. What is a 1.07 m EUR.

- Two bedroom apartment in ul.Cara Dusan br.87 Novi Sad, in the amount of 5020 thousand. Din. Which is 47.0

thousand. EUR. Of personal property (cars) in 2010, the protad a car, so they are able to rest six in total

knjigovodstvenenoj worth 2.5 million RSD.



Condition of material values acquired collection of claims of 31.12.10.godine iznosi.4.572.905 thousand. All material values that

are acquired collection of claims, is estimated by the authorized procenitenja.





Fair values are in all cases, higher than book value.

The Bank intends to be in the future sells materijalnin value, while the funds back into operation, by which time

certain material assets leased to generate income.



42

30.8. Geographic concentration

Thousands of RSD

European Total

2010 Serbia Union 2010



Interest and fees 3,157,039 3,157,039

Loans and advances to banks 6,721,023 29,962,741 36,683,764

Loans and advances to customers 75,282,020 75,282,020

Securities at fair value through profit or loss 160,421 160,421

Securities held to maturity 3,764,231 3,764,231

Securities available for sale 91,034 91,034

Other 2,957,489 2,957,489



Maximum exposure per balance sheet assets 92,018,978 30,077,020 122,095,998



Guarantees and backing 11,509,423 0 11,509,423

Uncovered Letters 429,544 429,544

Irrevocable lines of credit 3,142,735 3,142,735

Undrawn revocable loan facilities 4,134,922 4,134,922

Maximum exposure per off-balance sheet items 19,216,624 0 19,216,624





Total exposure 111,235,602 30,077,020 141,312,622





European Total

2009 Serbia Union 2009



Interest and fees 2,495,424 2,495,424

Loans and advances to banks 10,094,538 8,054,659 18,149,197

Loans and advances to customers 62,429,981 62,429,981

Securities at fair value through profit or loss 80,404 80,404

Securities held to maturity 4,444,952 4,444,952

Securities available for sale 713,074 713,074

Other 146,935 146,935



Maximum exposure per balance sheet assets 80,405,308 8,054,659 88,459,967



Guarantees and backing 8,874,658 0 8,874,658

Uncovered Letters 291,881 291,881

Irrevocable lines of credit 2,094,022 2,094,022

Undrawn revocable loan facilities 3,826,625 3,826,625



Maximum exposure per off-balance sheet items 15,087,186 0 15,087,186





Total exposure 95,492,494 8,054,659 103,547,153









Pplasmani the European Union as of 31 December 2010 relate to the Commerzbank AG FRANFUKR 249th million euros and $ 8 million, and

Deutsche Bank depouit FRANFURT 29 million, which is the total equivalent of 29,962,741 thousand, and the state of 31.12.2009 was deposited

with Commerce Bank in Frankfurt iunosu of 84 million, it was 8,054,659 RSD ..









43

30.9. Country Risk



Country risk is the risk of negative effects on the financial result and capital of the Bank's inability to collect receivables from

these entities for reasons which are a consequence of political, economic or social conditions in the country of origin of such

persons. Limits its exposure to country risk are determined individually by country of origin of the debtor, and in the assessment

and measurement of risk the bank uses the internationally defined and accepted standards for risk assessment of the country. The

Bank conducts adopted internal policies and procedures for risk management of the country to protect its business from the

aforementioned risks.









30.10. Credit Risk Concentration per Separate Industries

The following table presents the Bank's gross exposure categorized by the sectoral structure of clients:



Credit risk on balance sheet and off-balance sheet assets





31. December 2010. The 31. December 2009. The

Maximum gross exposure Maximum gross exposure

Balance off-balance off-balance

sheet sheet Total Balance sheet sheet total



Finance, leasing, 19,872,701 94,108

and pension funds 42,396,842 1,052,398 43,449,240 19,966,809



Agriculture, hunting, forestry, 4,578,631 297,010 4,875,641 3,882,754 170,987 4,053,741

water management and fishing 14,112,649 2,820,345

industry 16,121,818 4,116,438 20,238,256 16,932,994

Production and delivery of

electricity, gas and water 2,879,605 251,942

Ore and stone extraction and

processing industry 1,733,581 220,228 1,953,809 3,131,547

Civil engineering 12,859,941 3,307,087 16,167,028 7,467,421 2,326,092 9,793,513

Trade 17,165,269 2,558,007 19,723,276 19,999,231 2,611,115 22,610,346

Services, tourism,

accommodation

traffic and communications 4,774,219 1,811,611 6,585,830 5,486,804 1,372,329 6,859,133

Education, health and

Social Work 0 666,914 54,335 721,249

Real estate activities, public

services and other public utilities 2,960,232 670,714 3,630,946 2,787,148 1,373,217 4,160,365

Entrepreneurs 700,047 138,082 838,129 578,701 84,691 663,392

State administration (public 567,116 156

Sector) 4,579,363 818,906 5,398,269 567,272

Retail clients 10,417,975 4,094,218 14,512,193 8,894,945 3,848,369 12,743,314

Foreign natural persons 11,785 5,967 17,752 1,718 192 1,910

Private households 576,838 31,915 608,753 664,075 34,261 698,336

Other activities 3,219,457 94,043 3,313,500 598,185 45,047 643,232



122,095,998 19,216,624 141,312,622 88,459,967 15,087,186 103,547,153





* NAP0MENA:

Data on the credit exposure on balance sheet assets and off balance sheet items in the sectoral structure formed

on the basis of data from USSPO.









44

31. CURRENCY RISK



The following table presents the Bank's foreign exchange risk by knjigovodsstvenoj carried at values and

currencies. Positions with foreign currency are included in the dinar currency position.



in thousands

Other Total Local

ASSETS EUR USD CHF currency FX Currencies Total



Cash and cash

Equivalents 1,553,964 148,472 286,799 28,480 2,017,715 3,816,116 5,833,831

Callable deposits and

Loans 16,219,755 16,219,755 4,000,000 20,219,755

Interest, fee and

commission receivables 23,547 23,547 1,605,520 1,629,067



Loans and deposits 37,074,581 653,986 37,728,567 58,942,370 96,670,937

.

Securities 35,203 35,203 3,910,241 3,945,444

Equity investments (interests) 0 71,240 71,240

Other investments 130,519 130,519 5,124,694 5,255,213

Intangible assets 0 45,383 45,383

Property, equipment

and investment 0 2,856,992 2,856,992

Other assets 4,740 1,799 6 4 6,549 5,049,016 5,055,565



Total assets 55,042,309 804,257 286,805 28,484 56,161,855 85,421,572 141,583,427



LIABILITIES

Transaction deposits 1,174,161 85,145 19,691 2,559 1,281,556 3,241,069 4,522,625

Other deposits 63,825,246 1,083,012 114,629 153 65,023,040 21,642,768 86,665,808

Borrowings 9,298 899 10,197 2,109,962 2,120,159

Interest,

fee and commission

payables. 24,733 5 48 24,786 72,539 97,325

Provisions 0 665,180 665,180

Taxes and

payables 0 13,006 13,006

Income taxes and

dividends payable 0 796,068 796,068



Deferred tax liabilities 0 9,221 9,221

Other liabilities 738,984 1,670 349 741,003 1,785,135 2,526,138

Total liabilities 65,772,422 1,170,731 134,717 2,712 67,080,582 30,334,948 97,415,530



Net Foreign Currency Exposure

- At 31 December -

2010. 10,730,113 -366,474 152,088 25,772 -10,918,727 55,086,624 44,167,897

- At 31 December -

2009. -9,393,988 2,037,471 117,355 24,849 -11,289,255 50,383,297 39,094,042





At 31 December 2010, total assets in RSD, which is contracted by the risks attaching to the exchange rate against foreign

currencies amounted to 40,919,859 thousand and is shown in the Dinaric sub-balance.





Total liabilities indexed to foreign currency amounting to 7,657,889 thousand is also shown in the Dinaric sub-balance.



In the period under AIK banka ad, Niš has managed its business policy to protect itself from changes in exchange rates.

The principle of the risks of changes in exchange rates was to establish and maintain foreign currency claims (foreign

assets) at the volume of foreign liabilities (foreign currency liabilities). This ratio is complying with the views maturities

of foreign currency

and receivables, which is secured to the Bank

у terms of fluctuations of foreign exchange, foreign exchange losses on foreign currency exchange gain offset

obligations arising from foreign currency.



45

32. INTEREST RATE RISK



Risk exposure of interest rates at 31 December 2010. is shown in the following table:



in thousands



to 1 1 to 3 3 to 6 6 до 12 over Non-interest Total



months months months months 1 year



ASSETS

Cash and cash

Equivalents 3,106,903 2,726,928 5,833,831



Callable deposits and loans 4,000,000 16,219,755 20,219,755



Dived. interest, fees. 1,629,067 0 1,629,067



Loans and deposits 44,748,977 618,694 10,111,780 20,745,583 19,015,173 1,430,730 96,670,937

Stock value. (Without

sopst.akc.) 879,834 675,460 611,149 1,578,967 200,034 3,945,444

Shares (participation) 71,240 71,240

Other investments 3,103,729 2,151,484 5,255,213



Intangible assets 45,383 45,383

Property, equipment

and investment property 2,856,992 2,856,992

Other assets 5,055,565 5,055,565



Total assets 57,468,510 1,294,154 10,722,929 22,324,550 19,215,207 30,558,077 141,583,427



LIABILITIES



Transaction deposits 882,556 3,640,069 4,522,625

Other deposits 3,373,480 12,347,431 6,761,164 32,624,912 31,067,098 491,723 86,665,808



Borrowings 2,109,964 10,195 2,120,159



Interest, fee and commission

payables 97,325 97,325

Provisions 665,180 665,180

Taxes 13,006 13,006

Liabilities from income distribution 796,068 796,068



Deferred tax liabilities 9,221 9,221

Other liabilities 2,526,138 2,526,138



Total liabilities 6,366,000 12,347,431 6,761,164 32,624,912 31,067,098 8,248,925 97,415,530

Net risk exposure to interest rate risk



At 31 12. 2010 51,102,510 -11,053,277 3,961,765 -10,300,362 11,851,891 22,309,152 44,167,897





At 31 12. 2009th 30,051,962 -7,735,542 1,790,153 -12,322,416 11,178,760 16,131,125 39,094,042









46

33. LIQUIDITY RISK



Liquidity risk on balance sheet assets



In the national table below summarizes the maturity of assets and liabilities from the date due until the date

of balance sheet, or by remaining maturity:

Thousands of RSD

3 months from 1 to 5 over 5

up to 1 month to 3 months 1 year years years Total

ASSETS

Cash and cash equivalents. 5,833,831 5,833,831

Callable deposits. and loans 20,219,755 20,219,755

Interest, fee and commission

receivables 1,629,067 1,629,067

Loans and deposits 42,205,701 752,423 33,457,931 8,814,874 11,440,008 96,670,937

Securities (without your own.

share) 679,638 728,688 2,337,414 199,704 3,945,444

Interest (stake) 71,240 71,240

Other investments 3,701,313 507,133 1,001,045 45,722 5,255,213

Intangible assets 45,383 45,383

Property, equipment and

investment property 2,856,992 2,856,992

Other assets 5,055,565 5,055,565

Total assets 82,298,485 1,481,111 36,302,478 10,015,623 11,485,730 141,583,427

LIABILITIES

Transaction deposits 4,522,625 4,522,625

Other deposits 3,765,839 12,349,749 39,443,824 30,580,095 526,301 86,665,808

Borrowings 2,120,159 2,120,159

Interest, fee and commission

payables 97,325 97,325

Provisions 665,180 665,180

Tax payables 13,006 13,006

Liabilities from income distribution 796,068 796,068

Deferred tax liabilities 9,221 9,221

Other liabilities 2,526,138 2,526,138

Total liabilities 14,515,561 12,349,749 39,443,824 30,580,095 526,301 97,415,530

Maturity mismatch:

At 31 12. 2010th g. 67,782,924 -10,868,638 -3,141,346 -20,564,472 10,959,429 44,167,897

At 31 12. 2009th g. 40,561,690 -11,280,722 -6,642,363 6,426,317 10,029,120 39,094,042









Liquidity risk on off balance sheet items

Thousands of RSD





3 months from 1 to 5 over 5

years years Total





up to 1 month 1 to 3 months to 1 year Total

31. December 2010. The

Irrevocable commitments 3,606,698 3,360,972 5,171,354 2,750,506 192,172 15,081,702

Revocable commitments 18,525 10,292 45,211 4,060,891 2 4,134,921

Total 3,625,223 3,371,264 5,216,565 6,811,397 192,174 19,216,623





31. December 2009. The

Irrevocable commitments 2,696,097 2,999,100 3,449,685 1,862,295 244,247 11,251,424



Revocable commitments 204,346 85,537 87,263 3,458,590 27 3,835,763

47

34. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES



Fair value of financial instruments is the amount for which an asset could be exchanged or a liability settled,

between knowledgeable, willing parties in the course of the transaction. Given that there is sufficient market

experience for certain financial instruments, it is necessary to estimate fair value based on current economic

conditions and specific risks that can bind to a specific instrument.



The fair value of loans with variable interest rate and the deposit is approximately equal to knjigovodstenoj

value of financial assets reported at the balance sheet.



Placements with banks, including those with fixed interest rates, have agreed on a clause that due to

changes in market conditions, the Bank may change the terms of lending.



For demand deposits, and deposits with remaining maturities of less than one year, it is assumed that

the estimated fair value does not deviate significantly from their carrying values reported in the

balance.



For fair value of borrowings with variable interest rate stated at amortized cost, it is assumed that

approximates the carrying value of these obligations at the reporting date.



Value in the financial statements reflect a realistic position financially and material situation of the bank, and in

the circumstances are valid and useful for the purposes of financial reporting by accounting regulations of the

Republic of Serbia.







35. SENSITIVITY ANALYSIS

35.1 Sensitivity analysis (currency risk)

Impact of exchange rate changes ranging from 10% to 10% compared to the rates given below

Changes in exchange rate

31. December 2010. The Foreign 10% -10%

Currencies

ASSETS

Cash and cash equivalents 2,017,715 201,772 -201,772

Callable deposits and loans 16,219,755 1,621,976 -1,621,976

Interest, fee and commission receivables 23,547 2,355 -2,355

Loans and deposits 37,728,567 3,772,857 -3,772,857

Securities (excluding own shares) 35,203 3,520 -3,520

Shares (participation) 0 0 0

Other investments 130,519 13,052 -13,052

Other assets 6,549 654.9 -655



TOTAL ASSETS 56,161,855 5,616,186 -5,616,186



LIABILITIES

Transaction deposits 1,281,556 128,156 -128,156

Other deposits 65,023,040 6,502,304 -6,502,304

Borrowings 10,197 1019.7 -1019.7

Liabilities. 24,786 2,479 -2,479

Other liabilities 741,003 74,100 -74,100



TOTAL LIABILITIES 67,080,582 6,708,058 -6,708,058

% Net foreign currency position and

At 31 December of 2010. -10,918,727 -1,091,873 1,091,873

Net foreign currency position

At 31 December 2009. -11,289,255 -1,128,926 1,128,926



At 31 December 2010. year, assuming all other parameters unchanged, the change rate of other currencies in relation to rates of

10% and 10%, the Bank's profit would be reduced or increased by 1,128,926 thousand.





48

35.2. Sensitivity analysis (interest rate)



During the process of risk management of interest rate, the Bank performs a sensitivity analysis of changes of assets

and liabilities with variable interest rates.

It is important to emphasize that, regardless of market developments, it is never possible to equate the movement of

lending and deposit rates. This is because the lending rates have a significant impact and other forms of risk, so that

rates are a kind of active resistance in the situation where a decline in rates, especially rates on deposits and external

sources to the Bank.



Hypothetically, assuming that it is identical movement of active and passive interest rate risk, interest rate could be

represented by the following tabular presentation.





Statutrani Promenakamanet stope thousand

Foreign

currency Local currency Total Total

receivables and receivables and Reduced.

liabilities liabilities Increase in in

Foreign Local interest. interest.

31. December

In 2010. currency currency 4% -4% 4% -4 % rates



ASSETS

Interest, fee and

Commission

receivables 23,547 1,605,520 942 -942 64,221 -64,221 65,163 -65,163

Loans and

deposits 37,728,567 58,942,370 1,509,143 -1,509,143 2,357,695 -2,357,695 3,866,837 -3,866,837



Other investments 130,519 5,124,694 5,221 -5,221 204,988 -204,988 210,209 -210,209



Total 37,882,633 65,672,584 1,515,305 -1,515,305 2,626,903 -2,626,903 4,142,209 -4,142,209



LIABILITIES

Other deposits 66,304,596 24,883,837 2,652,184 -2,652,184 995,353 -995,353 3,647,537 -3,647,537

Borrowings 10,197 2,109,962 408 -408 84,398 -84,398 84,806 -84,806

Interest,

Fees 24,786 72,539 991 -991 2,902 -2,902 3,893 -3,893



Total 66,339,579 27,066,338 2,653,583 -2,653,583 1,082,654 -1,082,654 3,736,237 -3,736,237







Net exposure

31.12.2010 -28,456,946 38,606,246 -1,138,278 1,138,278 1,544,250 -1,544,250 405,972 -405,972







Net exposure

31.12.2009 -22,458,036 28,244,190 -898,321 898,321 1,129,768 -1,129,768 231,446 -231,446







It is assumed that interest rates in "extreme" move in the direction of growth / decline by 400 BP, which would

have impact on business results, and in extreme cases and the Bank's capital. Reducing interest rates for 400Bp

would lead to a reduction in operating results of the Bank for 406 million RSD, while for the same amount

increased the score in the event of a jump in interest rates. Having regard to the achieved operating results of the

Bank for 2010, we concluded that the Bank is exposed to interest rates.



Compared to the year 2009 the Bank reduced the interest-bearing assets sensitive to changes in interest rates, so

further reduce the impact of changes in interest rates on earnings.









49

36. CAPITAL MANAGEMENT









In accordance with the Decision on the capital adequacy of banks, defined by the National Bank of Serbia

(Official Gazette RS, No. 129/2007 and 63/2008) shall be determined by the method of calculating the Bank's

capital adequacy ratio and the capital. The basic capital is defined by the aforementioned



decision and must be at least 50% of the capital of the Bank.



The following table shows the calculated amounts of capital, additional capital and total capital, and the

calculation of capital adequacy as at 31 December 2009. year:





Thousands of RSD

December 31, 2010 December 31, 2009





Core capital 36,252,564 31,179,086

Additional capital 2,324,502 2,335,494

38,577,066 33,514,580

Deducted from equity -4,503,225 -4,882,558

Equity 34,073,841 28,632,022



Total risk balance sheet 93,195,126 77,885,757

Total risk off-balance sheet assets 10,141,215 7,964,432



Total risk assets 103,336,341 85,850,189





Capital adequacy ratio as of December 31 32 32









Minimum capital adequacy ratio for banks is 12%.



At 31 December 2010. year, the Bank's capital adequacy ratio was above the statutory minimum.



The Bank is required to scope and structure of its operations with the performance by the Banking Act

and the regulations of the National Bank of Serbia.









50

37. ECONOMIC CRISIS AND ITS IMPACT ON BUSINESS ACTIVITY









The economic crisis is still present and the economic recovery is still neibvestan. Bank and in 2010 operated

under difficult and uncertain economic conditions., And the impact of the crisis on its operations is not possible

to fully predict ..



Bank in 2010, as in previous years, had no problem in maintaining liquidity, despite the constant prisiutne

insolvency clients with which it operates, and above all thanks to the available domestic capital.



The Bank has used its advantages: it is still a local bank (the bank with majority domestic share capital), business-

autonomous (no majority shareholder), a political independent, and its business aktivnosst create priority on

maintaining liquidity and achieving profit margins of established patterns of lending activities which by its

estimate less risky. It also has tightened lending criteria and assessing their creditworthiness of potential

borrowers, has increased its security instruments, shorten the terms of use. The Bank has systematically and

continuously reduced their exposure to specific customers and prestruktuirala loans to less risky customers (the

public sector, state) and the purchase of government securities.









In order to achieve a profit within the projected limits and maintain the integrity of its capital, the Bank is in the

fourth quarter of 2010. was significantly reduced its lending activity, and it significantly more, and a business

focused on debt collection, whose effects have led to an increase in total assets of the Bank.



Starting from the negative effects of financial crisis on the real sector of economy, government measures to

mitigate the economic crisis, which is slow to realize, the main task of the Bank is in reviving business growth and

development credit and deposit activities with simultaneous optimization of potential business risk (risk

management) .









51

38. Segment reporting (IFRS 8)





38.1. ITEM BANK INCOME BY SEGMENT

in h and lj and d a m a

2 0 10 2 0 09

Retail Retail

Corporate Corporate

Operations Other Total Operations Other Total

Operations Operations

BILANSUSPEHA







Net interest income -1,742,453 7,331,591 1,052,571 6,641,709 -451013 8,077,912 -9,321 7,617,578



Net income from fees and commissions. 64,926 648,697 17915 731,538 76,943 577,803 -42,276 612,470



Net income from sale of securities 753 753 2,261 0 0 2,261

Net ac. / (Rash.) on foreign exchange

difference -1151,834 -1151,834 -399,712 -399,712



Other income 598,281 598,281 103,159 103,159

Net losses on impairment and

provisions -248,810 -1,804,137 84,951 -1967,997 -118,175 -2,407,542 -2,444 -2,528,161

Salaries and wedges

Expenditures -608,408 -608,408 -695,082 -695,082



Depreciation expense -149,477 -149,477 -142,844 -142,844



Operating expenses and other business expenses -1,680,423 -1,680,423 -1180,369 -1180,369

Net gains on the valuation

of assets and liabilities 10,264 3,374,272 399,772 3,784,308 36,380 2,316,962 421130 2,774,472



Profit before taxation -1,916,073 ?, 550.423 1,435,899 6,198,450 -453,604 8,565,135 1,947,759 6,163,772



Income tax and deferred tax -607,618 -584,309



Net income 5,590,832 5,579,463









52

38.2. Bank’s Asset/Liability Position per Separate Operating Segments

in thousands

3 1. 1 2. 2 0 10 3 1. 12. 2009

Retail Corporate Retail Corporate

BALANCE SHEET Operations Operations Other Total Operations Operations Other Total



ASSETS

Cash and cash

Equivalents 5,833,831 5,833,831 12,092,785 12,092,785

Callable deposits and loans 20,219,755 20,219,755 11,404,919 11,404,919

Interest, fee and

commission receivables 21,665 14 513 85 156,017 1,629,067 16,939 1,226,572 96,829 1,340,340

Loans and deposits 6,773,763 46,116,992 43,780,182 96,670,937 5,177,072 40,796,404 18,480,994 64,454,470

Securities value. (Without

Own shares) 3,121,739 823,705 3,945,444 31997 3,798,457 80,404 3,910,858

Shares (participation) 14,509 56,731 71,240 625,184 68,617 693,801

Other investments 3,271,546 1,699,795 283,872 5,255,213 3,677,590 3,907,441 142,836 7,727,867

Intangible assets 45,383 45,383 46,833 46,833

Property, equipment and

investment property 2,856,992 2,856,992 1416,869 1416,869

Other assets 1775 85,405 4,968,385 5,055,565 859 10,140 6,321,738 6,332,737

Total assets 10,068,749 52,489,825 79,024,853 141,583,427 8,904,457 50,364,198 50,152,824 109,421,479

LIABILITIES

Transaction deposits 810,491 3,303,093 409,041 4,522,625 799,979 4,455,155 108,475 5,363,609

Other deposits 64,063,405 14,627,535 7,974,868 86,665,808 37,261,619 14,953,766 6,318,582 58,533,967

Borrowings 2,120,159 2,120,159 3,697,776 3,697,776

Interest, fee and commission payables 25,214 39,108 33,003 97,325 43,938 58,078 39,155 141171

Provisions 665,180 665,180 0 841,614 0 841,14

Taxes 13,006 13,006 12,977 12,977

Liabilities from income distribution 796,068 796,068 526,566 526,566

Deferred tax liabilities 9,221 9,221 13,303 13,303

Other liabilities 26,887 35,040 2,464,211 2,526,138 21745 260,416 914,293 1196 ,454

Total liabilities 64,925,997 18,004,776 14,484,757 97,415,530 38,127,281 20,569,029 11,631,127 70,327,437

EQUITY

Share and other capital 25,390,565 25,390,565 25,390,565 25,390,565

Reserves 13,165,376 13,165,376 8,091,898 8,091,898

Revaluation reserve 21353 21353 32,339 32,339

Unrealized losses on securities available-for-sale. -229 -223

Retained earnings 5,590,832 5,590,832 5,579,463 5,579,463

Total equity 44,167,897 44,167,897 39,094,042 39,094,042



Total liabilities 64,925,997 18,004,776 58,652,654 141,583,427 38,127,281 20,569,029 50,725,169 109,421,479









53

39. Geographical segments



391. Bank’s Income Position per Geographical Segments in thousands

Regional. Regional. Regional. Regional. Total

Center Center New Center Center

INCOME STATEMENT Nis Belgrade Sad Kragujevac Switchboard Bank

2010

Net interest income 1364,129 -17,866 1,840,294 394,220 3,060,932 6,641709

Net income from fees and commissions. 272,485 177,124 145,024 41,880 95,025 731538

Net income from sale of securities 753 0 753

Net foreign exchange gains and losses -1,102,505 -1,933,747 -754,934 -470,077 3,109,429 -1151,834

Other income 25,468 19,475 36,599 5,957 510,782 598,281

Net losses on impairment and

provisions. -481,902 -99,014 -1,007,547 -355,621 -23,913 -1967,997

Staff costs -112,112 -154,898 -134,488 -63,656 -143,254 -608,408

Depreciation expense -149,477 -149,477

Operating expenses and other business expenses -196,044 -418,803 -226,785 -103,528 -735,263 -1,680,423

other business expenses

liabilities 799,428 814,162 1,105,556 370,603 694,559 3,784,308

Profit before taxation 569,700 -1,613,567 1,003,719 -180,222 6,418,820 6,198,450

Income tax -607,618

Net income 5,590,832



2009

Net interest income 871,635 347,058 2,244,947 564,369 3,589,569 7,617,578

Net income from fees and commissions. 208,019 174,977 122,341 25,278 81,855 612,470

Net income from sale of securities 2,261 2,261

Net foreign exchange gains and losses -485,050 -820,017 -295,969 -172,684 1374,008 -399,712

Other income 36,432 9,289 3,283 3,954 50,201 103,159

Net losses on impairment and provisions

provisions. 422,417 612,220 -1,709,464 -713,055 -1,140,279 -2,528,161

Staff costs -112,745 -163,941 -145,512 -68,816 -204,068 -695,082

Depreciation -142,844 -142844

Operating expenses and other business expenses -146,459 -309,792 -197,834 -83,712 -442,572 -1180,369

other business expenses

liabilities 638,325 583,517 713,764 224,418 614,448 2,774,472



Profit before taxation 1,432,574 433,311 735,556 -220,248 3,782,579 6,163,772

Income tax -584,309

Net income 5,579,463







54

in h and lj and d a

39.2. Bank's asset position by geographic segments ma

Regional. Regional. Regional. Regional. 3112.2010.

Center New Center Center Total

BALANCE SHEET Centre Nis Belgrade Sad Kragujevac Switchboard Bank

ASSETS

Cash and cash equivalents 495,532 502,06 419,386 215,551 4,200,756 5,833,831

Callable deposits and loans 20,219,755 20,219,755

Interest, fee and commission

receivables, 239,069 284,386 582,276 160,201 363,135 1,629,067

Loans and deposits 12,129,020 14,011,395 14,871,779 4,042,668 51,616,075 96,70,937

Securities (excluding own shares) 782,284 1075,91 1,094,363 20,356 972,750 3,945,444

Shares (participation) 71,239 1 71,240

Other investments 1451138 1,634,704 1,557,562 480,542 131267 5,255,213

Intangible assets 45,383 45,383

Property, plant and equipment

Property 2,856,992 2,856,992

Other assets 71,571 200,098 77,575 26,929 4,79 ,3 92 5,055,565

Total assets 3112 . 2010. 15,239,853 17,708,880 18,602,941 4,946,247 85,085,506 141,583,427

LIABILITIES

Transaction deposits 1089,741 1,515,584 1,350,466 296,237 270,597 4,522,625

Other deposits 19,230,388 38,390,084 15,520,117 8,765,141 4,760,078 86,65,808

Borrowings 304 16 11 2,119,828 2,120,159

Interest, fee and commission payables 17,178 56,26 15,730 3,187 4,04 97,325

Provisions 77,687 194,836 194,709 26,00 171,348 665,180

Taxes 8,911 413 362 171 3,149 13,006

Liabilities from income distribution 0 796,068 796,068

Deferred tax liabilities 0 9,221 9,221

Other liabilities 346,942 1,597,169 340,909 145,224 95,894 2,526,138

Total liabilities 20,771,151 41,754,728 17,422,293 9,236,571 8,230,787 97,415,530

EQUITY

Share and other capital 25,390,565 25,390,565

Reserves 8,091,898 13,165,376

Revaluation reserve 32,339 21353

Unrealized losses on securities available-for-sale. -223 -229

Retained earnings 5,579,463 5,590,832

Total equity 44,167,897 44,167,897

Total liabilities 3112 . 2010. 20,771,151 41,754,728 17,422,293 9,236,571 52,398,684 141,583,427









55

INCOME STATEMENT

Regional. Regional. Regional. Regional. 3112.2009

Center Center New Center Center Total

Nis Belgrade Sad Kragujevac Switchboard Bank

ASSETS



Cash and cash equivalents 672,705 493,872 777,216 369,766 9,779,226 12,092,785

Revocable deposits and loans

11,404,919 11,404,919

Interest, fee and commission receivables

83,113 130,139 475,784 113,815 537,489 1,340,340

Loans and advances to customers

8,254,739 7,025,013 13,051,633 4,231,057 31,892,028 64,454,470

Securities

742,596 843,672 932,872 31,641 1360,077 3,910,858

Equity investments (interests) 693,801 693,801

Other placements

2,243,536 3,357,084 1,535,927 553,141 38,179 7,727,867

Intangible assets 46,833 46,833

Property, equipment and investment property

1416,869 1 4 1 6,8 69

Other assets 468,366 639,049 423,661 232,886 4,568,775 6 ,332,737

Total assets at 31.12. 2009

12,465,055 12,488,829 17,197,093 5,532,306 61,738,196 109,421,479

LIABILITIES



Transaction deposits 1,322,321 2,065,262 1477,532 299,334 199,160 5,3 63,09

Other deposits

12,335,055 25,374,883 12,601,888 5,217,544 3,004,597 58,533,967

Borrowings

3,697,776 3,697,776

Interest, fee and commission payables 28,963 65,346 36,900 5,534 4,428 141171

Provisions

374,650 116,066 130,585 21050 199,263 841,14

Income taxes payable 8,538 59 25 116 4,239 12,977

Tax and dividend payables 52 6,5 66 52 6, 5 66

Deferred tax liabilities

13,303 13,303

Other liabilities 308,723 267,077 395,424 49,430 175,800 1 1 9 6 ,454

Total liabilities

14,378,250 27,888,693 14,642,354 5,593,008 7,825,132 70,327,437

EQUITY

Share and other capital

25,390,565 25,390,565

Reserves

8,091,898 8,091,898

Revaluation reserves 32,339 32,339

Unrealized losses on securities available-for-sale

-223 -223

Retained earnings

5,579,463 5,579,463

Total Equity 39,094,042 39,094,042

Total Liabilities at 31.12.2009

14,378,250 27,888,693 14,642,354 5,593,008 46,919,174 109,421,479



al liabilities 31st 12. 2009

56

40. EXCHANGE RATES



Exchange rates determined in the interbank meeting applied for the calculation of

the balance sheet into RSD at 31 December 2010. and 2009. for the major

currencies are:





31. December 31. December

2010. 2009.



USD 79.2802 66.7285

EUR 105.4982 95.8888

GBP 122.4161 107.2582

CHF 84 4458 64.4631









Sneţa Zivkovic









57



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