ANNUAL REPORT 2011 - ASDasd.gov.al/download/annual-reports/Annual-Report-2011.pdfICB International Commercial Bank EB Emporiki Bank, Albania PCB ProCredit Bank VB Veneto Banka TB Tirana

ANNUAL REPORT2011

2

Annual Report / 2011 Annual Report / 2011

1. General

1.1 Deposit Insurance Agency (DIA). Mission, vision, values1.2 Membership to the deposit insurance scheme.

2. Main aspects of the activity of DIA

2.1 Initial contribution.2.2 Annual insurance premium and its policies. 2.3 Compensation. 2.4 Financial means management.

3. Situation of insured deposits and their structure

3.1 Performance of insured deposits3.2 Structure and the number of depositors according to the levels defined by the

Law

4. Financial situation of DIA

4.1 Structure of the balance sheet.4.2 Capital and its performance.4.3 Profit and its performance.4.4 Auditing of the books and accounts of DIA.4.5 Internal Audit Report.4.6 External Audit Report

5. Overview on the other activities of DIA during 2011

5.1 Cooperation with the Bank of Albania 5.2 Cooperation with international and counterpart institutions5.3 Organization of the international workshop with subject “On the assessment of compliance with the core principles for effective deposit insurance systems”.5.4 Public education and information.

6. Main aspects of the development plan for 2012

6.1 Indispensability of drafting the two-year strategic development plan of the Agency

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Annual Report / 2011

ABBREVIATIONS

DIA Deposit Insurance Agency

IADI International Association of Deposit Insurers

EFDI European Forum of Deposit Insurers

Fdic Federal Deposit Insurance Corporation

SCI Credit and Savings Institutions

FSVC Financial Service Volunteer Corpus

FSAP Financial Sector Assessment Program

RB Raiffeisen Bank

AB Alpha Bank – Albania

ISPB Intesa Sanpaolo Bank Albania

NBG National Bank of Greece, Albania

UBA United Bank of Albania

FIB First Investment Bank

BKT National Commercial Bank

ICB International Commercial Bank

EB Emporiki Bank, Albania

PCB ProCredit Bank

VB Veneto Banka

TB Tirana Bank

CB Credins Bank

CBA Credit Bank of Albania

SGB Societe Generale Bank Albania

UB Union Bank

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1. GENERAL

1.1 Deposit Insurance Agency (DIA)

The Deposit Insurance Agency is an independent institution established based on the Law no. 8873 dated 29/03/2002 “On Deposit Insurance”, amended, in order to support and strengthen the stability of the financial and banking system in the country.

The Board of Directors is the top management body of the Agency. Its members are appointed by the Bank of Albania in the quality of the Supervisory Authority, based on the following proposal:

Two members from the Bank of AlbaniaTwo members from the Ministry of Finance One member from the Professional Union of Public Accountants

The General Director represents the executive authority of the Deposit Insurance Agency.

MISSION

The mission of the Agency is related to the achievement of the following public objectives:

· Protection of the small depositors of the banking system by insuring and compensating their deposits in the banks that conduct their banking activity in the territory of Albania.

· The contribution for strengthening the stability of the banking and financial system.

· Strengthening the public trust in the banking and financial system, thus contributing to the economic welfare of the country.

VISION

The Deposit Insurance Agency is a public institution, a member of the financial security network in the country, contributing to the maintenance and strengthening of the financial and banking system stability, through the enhancement of the effectiveness of the deposit insurance scheme in accordance with the international deposit guaranteeing standards.

VALUES

The Deposit Insurance Agency and its employees are working professionally in order to build an institution serving to the public, which in fulfilling its institutional mission is based on:

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Skills and integrity, through the training and qualification of its employees with high contemporary, professional and ethical standards.Effectiveness, through quick and professional response to the needs that dictate the national and international developments in the deposit insurance field.

Cooperation, through effective communication and coordination between its employees, as well as with the local regulatory and supervisory institutions, members of the financial security network, which also support the deposit insurance system.

Professional accountability and transparency, through effective behaviour and action in every situation.

Protection of the public interest, The agency and its employees are responsible for the implementation of the legal and regulatory framework on deposit insurance in the country, in the name and interest of the public, addressing in an unbiased manner any views of the members of the deposit insurance scheme.

1.1 Membership in the deposit insurance scheme

According to Article 3 of the Law no. 8873, dated 29/03/2002 “On Deposit Insurance” amended, no bank shall accept and collect deposits unless it is insured by the Agency. Thus, membership in the deposit insurance scheme is obligatory for all the banks that operate in the territory of the Republic of Albania.The number of banks insured by the Deposit Insurance Agency at the end of 2011 was 16. These include the following Albanian and foreign private banks:

1. Raiffeisen Bank2. United Bank of Albania3. Veneto Banka4. National Commercial Bank5. Tirana Bank6. National Bank of Greece, Tirana branch7. International Commercial Bank8. Alpha Bank - Albania9. Intesa Sanpaolo Bank, Albania10. ProCredit Bank11. First Investment Bank12. Emporiki Bank, Albania13. Credit Bank of Albania14. CREDINS Bank15. Société Générale Bank Albania16. Union Bank

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2. MAIN ASPECTS OF ThE ACTIVITy OF DIA The Deposit Insurance Agency, whose activity in Albania is governed by the Law no. 8873 dated 29/03/2002 “On Deposit Insurance” amended, insures the deposits of individuals in the banking system, takes care for including on due time the depositors in the deposit insurance scheme and compensates the deposits in the banks whose license is revoked by the Supervisory Authority (Bank of Albania) according to the criteria defined by the Law.

The activity of the Deposit Insurance Agency includes the establishment of the funds necessary for its activity, through the collection of the initial contribution that the banks pay for becoming a member of the scheme, defining and following up the payment of the annual premium by the second tier banks for the insurance of deposits of their customers, verification of the premium calculation accuracy, financial means investment and the main final function for the fulfilment of the compensation obligation of the depositors of second tier banks operating within the territory of the Republic of Albania.

In accordance also with the Directive 94/19, amended, of the European Community on deposit insurance, the Agency shall insure all the deposits of individuals in ALL and foreign currency, converted according to the official exchange rate defined by the Supervisory Authority on the day of the intervention.. The Agency shall insure the deposits of individuals up to ALL 2,500 thousand, time deposits in ALL, time deposits in foreign currency, demand deposits in ALL, demand deposits in foreign currency, certificates of deposit in ALL, certificates of deposit in foreign currency, etc.

2.1 Initial contribution

Membership in the deposit insurance scheme is mandatory for all the institutions conducting banking activity in the country. According to the Law no. 8873, dated 29/03/2002 “On Deposit Insurance” amended, Article 23, any insured bank should pay to the Agency an initial contribution equal to 0.5 percent of the subscribed capital of the bank. During 2011, no new entities were added to the deposit insurance scheme in Albania. According to the above Law, during last year the initial contribution calculation rate remained the same.

2.2 Annual insurance premium and its policies

According to Article 24 of the Law no. 8873, dated 29/03/2002 “On Deposit Insurance” amended, for every insured bank, the annual deposit insurance premium shall be 0.5 percent of the arithmetic average of the amount of the insured deposits, registered at the end of every business day for the last three months of the previous year. The Agency may reduce this premium to 0.1 percent, only if its financial means shall be less than 5 percent of the average of these deposits. This action shall be executed based on the respective by-law. This ratio at the end of 2011 reached the level of 2.7 percent, compared to 2.2 that was in the same period of the previous year.

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According to Article 24 of the above Law, the payment of the premium even for this year was effectuated in four quarterly instalments according to the terms defined by the Law. At the same time, with the payment of the first instalment, the banks shall also submit to the Agency the premium statement which confirms the premium calculation according to the requirements of the Law. The insurance premium income, which constitute the main income source of the Agency, for the year 2011 amounted to ALL 2,241,387 thousand which compared to the previous year have marked an increase of about 15,5 percent.The annual deposit insurance premium rate for 2011 was applied the same for all the banks according to the provisions defined by the Law.

2.3 Compensation of the insured deposit The agency is responsible for the realization of its final function, the compensation of the customers’ deposits in real time and in accordance with the provisions defined by the Law. Compensation on behalf of the insured deposits begins immediately after the Agency is notified in writing by the Supervisory Authority for the intervention in the insured bank and it is completed not later than three months from the starting date of the compensation process.According to the Law “On Deposit Insurance”, amended by the Law no. 10 106, dated 30/03/2009 “On several amendments and additions to the Law no. 8873, dated 29/03/2002 “On Deposit Insurance”, the Agency shall compensate the insured deposit, according to the provisions of this Law, to the extent of 100 percent and in any case not more than ALL 2,500,000 (two million and five hundred thousand), for each depositor at each insured bank operating in the Republic of Albania, irrespective of the deposits number or the deposited amount.

2.4 Financial means management

Based on the Law no. 8873, dated 29/03/2002, “On Deposit Insurance”, and the “Financial means management policy” document, the Deposit Insurance Agency is responsible for the effective management of funds and in accordance with the risk management accepted standards. Funds management is realized through the investment policy of the financial means of the Agency in Albanian Government securities and in foreign currency securities of the governments, central banks and the other international financial institutions of other countries, whose currency is in a deposit account in the insured bank, with an outstanding maturity of not more than one year.

DIA has set up an escalated maturity breakdown of its portfolio, in order to fully guarantee, at any time, the needs for financial liquid means. Therefore, taking into consideration the maturity, the portfolio breakdown as of 31/12/2011 is as follows:

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Shperndarja e portofolit te investimit sipas maturitetit

30%

27%

43%0-3 M

3-6 M

9-12 M

Considering the specific weight of the sub-portfolios of the financial means, the portfolio breakdown according to the currency as of 31/12/2011 is as follows:

Shperndarja e portofolit te investimit sipas monedhes

90,6%

4,6% 4,8%

LEK EURUSD

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3. SITUATION OF INSURED DEPOSITS AND ThEIR STRUCTURE

3.1 Performance of insured deposits

Deposits of the customers of the Albanian banking system, at the end of 2011 increased by 12.7 percent compared to the end of 2010.

The individuals’ deposits, which are subject to the deposit insurance scheme, occupy a weight of 85 percent as compared to the total deposits in the entire banking system, whereas the insured deposits represent about 67 percent of the individuals’ deposits. The majority of the individuals’ deposits is occupied by the deposits in ALL and 47 percent of them are deposit in foreign currency.

With reference to the performance of the individuals’ deposits for the one-year period December 2010 – December 2011, an increase by 15 percent is observed, whereas insured deposits showed an increase by 11.8 percent.

The performance of individuals’ deposits during this one-year period is shown in the following chart.

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3.2 Structure of the number of depositors and the deposits amount according to the levels defined by the Law

At the end of December 2011, the aggregated deposits of individuals after netting, expressed in percentage according to the levels, are shown in the following table:

Structure

Total aggregated after nettingof

Deposits No. of depositors (%) Amount (in %)Up to 2,500,000 95 42

over 2,500,000 5 58

Total 100 100

Deposits amounting up to ALL 2,500 thousand, occupy about 42 percent of the total individuals’ deposits. Whereas the number of depositors whose aggregated deposits amount to ALL 2,500 thousand, dominates by occupying 95 percent of the total.

Graphically, this information is presented as follows:

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Comparatively, the breakdown structure of insured deposits at the levels defined by the Law, according to the number and the amount is shown in the following chart:

4. FINANCIAL SITUATION OF DIA

The dynamic of Assets and Liabilities of the Agency for 2011, according to the balance sheet indicators, is summarized in the following table:

Description (in thousand ALL) 31.12.2011 31.12.2010 Difference

Fixed assets 61.937 63.421 -1.484

Current assets 13.311.224 10.385.428 +2.925.796

TOTAL ASSETS 13.373.161 10.448.849 2.924.312Agency capital 13.371.740 10.447.678 +2.924.062

Other liabilities 1.421 1.171 +250

TOTAL CAPITAL & LIABILITIES 13.373.161 10.448.849 2.924.312

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4.1 Capital and its performance

The capital of the Agency as of 31/12/2011 is ALL 13,371,740,478.01. It is composed of:

n Legal capitalamounting ALL 400,000,000Based on the Law no. 8873, dated 29/03/2002, “On Deposit Insurance”, Article 19, the Legal Capital of DIA is a contribution of the state budget, deposited by the Ministry of the Finance in February 2003.

n Accumulated income amounting ALL 10,047,678,173.66 They represent the accumulated and retained profit realized by the activity of the Agency during 2002- 2010.

n Income of the financial year amounting ALL 2,924,062,304.35 They represent the profit realized during the reporting period 1 January – 31 December 2011.

DIA CAPITAL MOVEMENT STATEMENT

31.12.2011 31.12.2010

AGENCY CAPITAL• Legal Capital 400.000.000,00 400.000.000,00• Accumulated capital 10.047.678.173,66 7.510.032.710,50• Profit of the financial year 2.924.062.304,35 2.537.645.463,169Total capital of the Agency 13.371.740.478,01 10.447.678.173,66

Based on the analysis of the means and methods of financial instruments management, it is observed an increasing stable performance of the capital over the years. Graphically, it is expressed as follows:

Ecuria e kapitalit ne vite

0

13.372

7.910

10.445

6.3334.982

3.9032.962

2.1471.337

02000400060008000

10000120001400016000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Viti

Milion

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4.3 Profit and its performance

DIA profits over the years are realized by the ratio of Income generated and Expenses incurred during the financial year

• INCOME

The income for 2011 have been realized to the extent of ALL 2,999,303,477.74. They are composed of:

Income from the initial contribution of insured banks, which represent the payments of initial contributions by the insured banks in accordance with Law no. 8873, dated 29/03/2002 “On Deposit Insurance”, Article 23, paragraph 4 (e). During this year there have been no income from this source because no new banks joined the system.

Insurance premium income, represent a legal obligation of insured banks for the payment of the annual deposit insurance premium and they are the most important incomes in the portfolio of DIA. For 2011, premium incomes are ALL 2,241,387,105.42 .

Monetary Operations Incomes, represent the active interests from the investment of the financial means of the Agency and they constitute an important indicator in the strengthening of the financial means of the Agency. For 2011 the investments incomes are ALL 736,294,149.80 (due incomes). Analyzed over the years, the monetary operations

Shpërndarja e depozitave të agreguara pas netimit dhe e numrit të depozitorëve, sipas nivelit të mbulimit (ne %)

95

5

4258

-

20

40

60

80

100

120

Deri 2500 mbi 2500

Nr.Shuma

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incomes demonstrate an increasing stability of the return of investment and also a better and more effective management of the funds in accordance with the accepted risk management standards.

Income from other activities, which represent the income from the re-assessment of the portfolio of foreign securities amounting to ALL21,622,222.52

Ecuria e fitimit te ASD ne vite

684 810 815 941 1.0791.351

1.577

2.5382.924

0

500

1.000

1.500

2.000

2.500

3.000

3.500

2003 2004 2005 2006 2007 2008 2009 2010 2011

• EXPENSES In total, DIA expenses for 2011 are realized to the extent of ALL 75.241.173,39.

The following table represents the performance over the years of the specific weight that the realized expenses of the Agency occupy against the income realized during the same period. In ALL

Year 2008 Year 2009 Year 2010 Year 2011

Income 1,407,669,955 1,659,311,566 2,615,016,538 2.999.303.477

Expenses 56,900,552 81,873,916 77,371,075 75.241.173

Specific weight of Expenses/Income 4.04 4.93 2.96 2.51

Graphically, this ratio and its performance over the years is presented as follows:

Viti

Milion

15


Raporti i te Ardhurave me Shpenzimet

11861408

1659

2999

106 57 82 78 75

2615

0500

100015002000250030003500

2007 2008 2009 2010 2011 Viti

Te ArdhuratShpenzimet

4.2 Auditing of the books and accounts of DIA

The activity of the Agency for 2011, its accounts and registers have been audited by the internal audit. Based on the audit report it results that the financial statements truly represent the financial indicators of the Agency.

4.5 Internal Audit Report

With regards to the auditing of the financial statements of 2011, the objective of the internal audit was:

n assessment of the credibility of the financial information and management;n assessment of the internal audit effectiveness

At the end of the audit, the opinion about the financial statements of DIA is that:The data presented in the accounting balance sheet, in the statement of income and the respective annexes, truly and fairly reflect the financial situation of DIA as of 31 December 2011, the performance and the changes of the financial situation in accordance with the Law “On accounting and financial statements” and with the accounting principles and policies adjusted with the Decision of the Council of Ministers no. 250 dated 15/04/2005, “On Accounting Manual of DIA”.

As it regards the evaluation of the internal audit system, the Board of Directors and the Management of the Institution, have set up the infrastructure or the regulatory framework that have affected the high efficiency management of all the practices that constitute the development of DIA activity. The Management has set up the practical aspects of monitoring the normal execution of duties, identifying the internal deficiencies and establishing the system of financial

Milion

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controls and other controls so that it may provide adequate guarantees for:

n effective and efficient operationsn internal financial controlsn compliance with the Laws and rules

During last year, DIA has achieved financial indicators making the future of its mission very optimistic. The situation appears positive also with regards to the realization of performance indicators, which have always been increasing and considerably improving.

Finally, the internal audit expresses the opinion that the financial statements truly reflect the authenticity of the financial indicators prepared by DIA for 2011. 4.6 External Audit Report

During 2011, DIA contracted the company “Deloitte Albania sh.p.k” for conducting the external auditing of the “Financial statements of the Agency for the financial period 1 January 2010 – 31 December 2010”According to the opinion provided in the independent auditor report “The financial statements of the period truly reflect all the material aspects, the financial position of the Agency as of 31 December 2010, and the result of its operations and cash flow for the year ended as of that date, in accordance with the accounting policies adjusted in the Accounting Manual of the Agency, approved by Decision of the Council of Ministers no. 250, dated 15 April 2005 ”.

5. AN OVERVIEW ON ThE OThER ACTIVITIES OF DIA DURING 2011

5.1 Cooperation with the Bank of Albania

The Bank of Albania is the Supervisory Authority of the Agency’s activity according to the Law no. 8873 dated 29/03/2002 “On Deposit Insurance” amended, among others for the approval of the budget and by-laws affecting third parties, that in our case are second tier banks. Cooperation with this institution continued even during 2011 pursuant to the implementation of the projects according to the approved development plan.

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5.2 Cooperation with international and counterpart institutions

The Agency continued the development of its relations with international institutions and organizations in the area of deposit insurance even in 2011, thus contributing to the improvement of the dialogue between the authorities and the insurance scheme members. The Agency, as a member institution of the organization “ International Association of Deposit Insurers” (IADI) and European Forum of Deposit Insurers (EFDI), participates and engages actively and professionally in the meetings and trainings organized by them, related to the information exchange and the multilateral experiences, cross-boundary issues and the initiatives for the revision of the European legislation on the deposit insurance schemes.

The participation of the Agency in the international organizations of deposit insurance serves to the further harmonization of its legislation in accordance with the core international principles “On an Effective Deposit Insurance System” and with the Directive of the European Community “On deposit insurance schemes”, amended, thus preceding the compliance of the legal framework on deposit insurance in Albania, with the “acquis communautaire” requirements.

5.3 Organization of the international workshop with subject “On the assessment of compliance with the core principles for effective deposit insurance systems”.

The assessment of compliance with the core principles for effective deposit insurance systems is an important document for the assessment of the local deposit insurance system, which not only will be used in the Financial Sector Assessment Program (FSAP) and also by the International Monetary Fund and the World Bank, but at the same time, it will assist the policy makers and decision-makers in the financial network of a country, in the process of assessment of the deposit insurance system and the relations of the deposit insurance institution with the other member institutions of the financial security network.Pursuant to the 2011 development plan, following the professional ambitions of the Agency for approximation with the advanced international experience in the deposit insurance field, the Agency, with the special support of the Governor of the Bank of Albania, organized the first workshop of this kind, in the international and regional aspect, in Albania, on 6-8 July 2011, where international professionals and experts of the field, writers of the document of the core international principles and their assessment methodology, gathered and led the assessment of the core principles compliance “For an effective deposit insurance system”. This activity, organized with the initiative of IADI and EFDI in cooperation with USAID, brought for three consecutive days to the attention and interest of policy-makers of the financial system, central bankers, lawyers and specialists of the financial and banking sector in the country, deposit insurance issues on:

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• Presentation and acknowledgement with the core principles and the methodology for an effective deposit insurance system, referring to the Albanian deposit insurance system as a “case study” .

• Assessment by the senior experts of IADI and EFDI in the area of deposit insurance, of the deposit insurance scheme in Albania, compliance of the existing Albanian legal and regulatory framework with these principles, paying particular attention to the mutual cooperation between the members of the financial security network in the country.

The direct outcome of this workshop was the assessment of the compliance of the Albanian deposit insurance system with the generally accepted international standards, and the compilation of the “Aide memoire” document which provides the following recommendations:

Modernization and strengthening of the legal and technical capacities of the Deposit Insurance Agency in order to fulfil its public objective in three main aspects:

1. Improvement of the legal and regulatory framework for its approximation with the European legislation on deposit insurance.

2. Automation of the information technology infrastructure of the reporting and assessment of the deposit insurance premium

3. Improvement and assessment by the Agency of the public education level on deposit insurance related issues.

5.4 Public education and information

The Deposit Insurance Agency, based on Article 30 of the Law no. 8873, dated 29/03/2002 “On Deposit Insurance”, amended, and the “Public Education and Information Policies”, continued to pay special importance to the public education on deposit insurance issues, even during 2011.

- By distributing in the bank counters information leaflets related to the deposit insurance scheme. The leaflets containing educational information on the deposit insurance scheme, prepared by the Agency, are addressed to the Albanian citizen as a depositor in the banking system, and a special leaflet is addressed to the employee of the bank, these two being the most important stakeholders of the deposit insurance scheme. Their text is focused on providing information in the form of practical advice and concrete examples, giving answers to the questions of the depositors and employees of the bank related to the: coverage amount, deposits subject to the scheme, storage of the deposit related data, compensation calculation in the case of bankruptcy, how to act in the case of joint deposits, etc. In addition, the Agency continues to provide the banks with its logo, and the certificate of membership in the deposit insurance scheme, which are mandatory to be exposed and displayed within the premises of the bank.

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6. MAIN ASPECTS OF ThE DEVELOPMENT PLAN FOR 2012

Following and pursuant to the main development aspects of the Agency for 2011, and based on the guidelines of the Resolution of the Assembly of the Republic of Albania for 2011, the Agency has compiled and approved by decision of its Board of Directors no. 322, dated 30/12/2011, a two-year Strategic Development Plan of the Deposit Insurance Agency, 2012-2014.

6.1 Indispensability of drafting the two-year strategic development plan of the Agency

The events of the recent global financial crisis, the assessment of the deposit insurance system have identified:

n The importance of taking effective measures to improve the insurance and compensation of depositors

n The need for authorities to agree on acknowledging and implementing an international package of principles for assessing the effectiveness of the deposit insurance system in the country.

These preconditions introduced to the Agency the need for preparing and approving a two-year Strategic Development Plan, in order to improve the deposit insurance system through:

1. Strengthening the cooperation between the members of the financial security network in the country.

2. Ensuring the support of the law-making, supervisory and regulatory authorities of the deposit insurance system.

The development of the assessment process for an effective deposit insurance system in the country put DIA in front of the main challenge, that of the compliance of the Albanian deposit insurance system with the international accepted standards for an Effective Deposit Insurance System. The Agency, pursuant to the realization of the two-year strategic development plan, intends to ask the cooperation and support of other stakeholders of the financial security network in the country, Bank of Albania, Ministry of Finance and other international organizations specialized in technical and financial assistance in the deposit insurance field.

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The main supporting sources of the Agency include:

n Policies of the Agency n Internal financial sources (activity budget) and external financial sources (projects,

donations, etc.)n human resources of DIA and foreign expertise in the form of technical assistance.

The Agency has cooperated and continues to cooperate with international specialized institutions, in order to receive the required technical assistance and know-how.More specifically, the cooperation with FSVC – USAID program has started since the last year and it will continue also during 2012, on the short-term technical assistance with object “Advice on the automation of the information technology infrastructure at DIA”

Furthermore, cooperation with World Bank’s - FIRST program, will start during 2012, focused on the technical assistance related to the “Modernization and strengthening of the legal and regulatory framework of the deposit insurance scheme”. The object of this project will be:

• amendments to the laws and by-laws regarding the increase of effectiveness of deposit insurance procedures; financing procedures of the Agency; strengthening of the operational and administrative independence of DIA, and strengthening cooperation with the other members of the financial security network when drafting the contingency plan;

• public awareness raising about deposit insurance related issues and assessment of the public level of trust in the deposit insurance scheme in the country.

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ASSETS N31.12.2011

N-131.12.2010

A Monetary means and their equivalents 104,890,511.75 259,587,089.10 1- Cash 101,123,552.83 250,152,280.04 2- Cash Equivalents 1,927,375.89 7,600,000.00 3- Administrative accounts with banks 1,839,583.03 1,834,809.06 4- Cash box 0.00 0.00

B Investments in securities of Government 12,732,887,931.81 9,627,856,162.49 1- Investmens in securities of Albanian government 11,849,967,061.00 8,680,838,316.00 2- Investments in securities of foreign governments 1,233,103,980.00 1,210,380,230.00 3- Interest receivable (Treasury Bonds) -362,179,818.00 -272,889,631.00 4- Discount, price, premium securities 11,996,708.81 9,527,247.49

C Accounts receivable 473,445,902.86 497,984,646.09 1- Premiums receivable 461,057,235.89 485,271,430.96 2- Interest calcaulated as revenues (sec) 12,358,930.97 12,683,479.13 3- Requests for collection to bankrupt banks 0.00 0.00 4- (-) Develuation of collection requests 0.00 0.00 5- Other receivables (debtors) 29,736.00 29,736.00

D Other assets 61,936,695.03 63,421,107.98 1-Fixed assets 59,953,822.30 61,807,105.90 a- Fixed intangible assets 1,563,600.00 1,083,600.00 b- Fixed tangible assets 93,215,980.90 92,844,464.50 (-) Accumulated depreciation FA -34,825,758.60 -32,120,958.60 2- Materials 1,682,663.73 1,381,408.08 3- Expenses to be distributed 300,209.00 232,594.00

T O T A L (A+B+C+D) 13,373,161,041.45 10,448,849,005.66 Accounts off balance sheet Requests for collection Other commitment accounts

TOTAL ASSETS 13,373,161,041.45 10,448,849,005.66

ALBANIAN DEPOSIT INSURANCE AGENCy BALANCE ShEET at December 31, 2010

In lek

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LIABILITIES AND CAPITAL N31.12.2011

N-131.12.2010

A LIABILITIES 1,420,563.44 1,170,832.00 I. Short term liabilities 1,420,563.44 1,170,832.00 1. Compensation of insured deposits 0.00 0.00 2. Short term credits / loans 0.00 0.00 3. Other creditors 1,420,563.44 1,170,832.00 * Calculated expenses 667,737.44 453,582.00 * Creditor for contracts 93,736.00 93,736.00 * Liabilities for social/health insurance 282,753.00 271,601.00 * Liabilities on income tax 376,337.00 351,913.00 II. Long term liabilities 0.00 0.00

III. Provisions 0.00 0.00

B Revenues collected in advance 0.00 0.00

C Subsidies and donations 0.00 0.00

D Funds 13,371,740,478.01 10,447,678,173.66 I. Main capital (foundation capital) 400,000,000.00 400,000,000.00 II. Reserves 0.00 0.00 III. Accumulated fund 10,047,678,173.66 7,510,032,710.50 IV. Profit and loss of financial year (-) 2,924,062,304.35 2,537,645,463.16

T O T A L (A+B+C+D) 13,373,161,041.45 10,448,849,005.66 Accounts off balance sheet Revenues receivable Other commitment accouns

TOTAL LIABILITIES 13,373,161,041.45 10,448,849,005.66

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NR STATEMENT OF REVENUES AND EXPENSES N N-1

(in lek) 31.12.2011 31.12.2010 REVENUE 2,999,303,477.74 2,615,016,538.27

Out of these: A From insurance activity 2,241,387,105.42 1,941,085,734.94

1. Revenues from initial contribution 0.00 0.00 2. Revenues from premiums 2,241,387,105.42 1,941,085,734.94 3. Other revenues connected to them 0.00 0.00

B From operational activity 736,294,149.80 629,506,875.30 1. Revenues from deposits interests 9,649,337.30 13,031,863.22 2. Revenues from securities interests 726,644,812.50 616,475,012.08 a- of Albanian Government 698,852,193.00 587,359,752.00 b. of foreign governments 27,589,391.41 29,100,362.67 c. Other revenues connected to them (discounts) 203,228.09 14,897.41 3. Differences in convertion

C Re-collection of provisions 0.00 0.00 D Revenues from bankruptcy 0.00 0.00 E Other revenue 21,622,222.52 44,423,928.03

* re-evaluation securities + others 21,622,222.52 44,423,928.03 1 TOTAL A+ B+ C+ D+ E 2,999,303,477.74 2,615,016,538.27

DEPOSITS INSURANCE AGENCy REVENUES AND EXPENSES STATEMENT

24


NR EXPENSES

(in lek) N

31.12.2011 N-1

31.12.2010 A Operating expenses 40,982,407.39 45,790,611.09

1. Expenses for materials and others 15,309,123.43 16,748,682.81 2. Financial expenses 22,968,483.96 25,875,107.48 3. Depreciation of Fixed Assets 2,704,800.00 3,166,820.80 4. Rate of expenses to be distributed 0.00 0.00

B Expenses of personnel 30,374,180.00 27,736,894.02 1. Salaries + rewards 27,296,174.00 24,840,809.02 2. Social insurance 2,164,275.00 1,867,911.00 3. Similar others 913,731.00 1,028,174.00

C Taxes and similar 0.00 0.00D Provisions 0.00 0.00E Other operative 3,884,586.00 3,843,570.00

Board expenses 3,884,586.00 3,843,570.00F Bankruptcy expenses 0.00 0.00G Expenses of previous periods 0.00 0.00H Contingency expenses 0.00 0.00K Other 0.00 0.00

TOTAL A+ B + D + E + F + G + H + K 75,241,173.39 77,371,075.11E1 Other operative (convertion difference) 0.00 0.00

Re-evaluation difference of securities in EURO/USD 0.00 0.002 TOTAL A+ B + D + E + F + G + H + K+E1 75,241,173.39 77,371,075.11

NET INCOME 2,924,062,304.35 2,537,645,463.16

25


NR EXPENSES

(in lek) N

31.12.2011 N-1

31.12.2010 A Operating expenses 40,982,407.39 45,790,611.09

1. Expenses for materials and others 15,309,123.43 16,748,682.81 2. Financial expenses 22,968,483.96 25,875,107.48 3. Depreciation of Fixed Assets 2,704,800.00 3,166,820.80 4. Rate of expenses to be distributed 0.00 0.00

B Expenses of personnel 30,374,180.00 27,736,894.02 1. Salaries + rewards 27,296,174.00 24,840,809.02 2. Social insurance 2,164,275.00 1,867,911.00 3. Similar others 913,731.00 1,028,174.00

C Taxes and similar 0.00 0.00D Provisions 0.00 0.00E Other operative 3,884,586.00 3,843,570.00

Board expenses 3,884,586.00 3,843,570.00F Bankruptcy expenses 0.00 0.00G Expenses of previous periods 0.00 0.00H Contingency expenses 0.00 0.00K Other 0.00 0.00

TOTAL A+ B + D + E + F + G + H + K 75,241,173.39 77,371,075.11E1 Other operative (convertion difference) 0.00 0.00

Re-evaluation difference of securities in EURO/USD 0.00 0.002 TOTAL A+ B + D + E + F + G + H + K+E1 75,241,173.39 77,371,075.11

NET INCOME 2,924,062,304.35 2,537,645,463.16

(in 000/lek)

CASH FLOWS STATEMENT 31.12.2011N

31.12.2010N-1

1 OPERATING ACTIVITIES

Net Income 2,924,062.30 2,537,645.46Accumulated depreciation FA 2,705.00 3,167.00Account receivable (premium receivable) 24,539.00 -210,337.00Increase of investment in securities of Government -3,105,032.00 -2,073,083.00Increase of other assets -369.00 105.00Decrease of liabilities 249.70 127.00Net Cash Flow from the Operating Activities -153,845.00 257,624.46

2 INVESTING ACTIVITIES

* Purchase of fixed assets (material) -852.00 -400.00Net Cash Flow used in Investing Activities -852.00 -400.00

3 Net increase (Decrease) in cash over the year (1 +2) -154,697.00 257,224.46Cash and Cash Equivalents- Beginning 259,587.46 2,363.00Cash and Cash Equivalents- Ending 104,890.47 259,587.46

DEPOSITS INSURANCE AGENCy STATEMENT OF CASH FLOWS for the years ended December 31

(as of 31.12.2010)

26


Documents

ANNUAL REPORT 2011 - ASDasd.gov.al/download/annual-reports/Annual-Report-2011.pdfICB International Commercial Bank EB Emporiki Bank, Albania PCB ProCredit Bank VB Veneto Banka TB Tirana