Sberbank generates RSD 635 m H1 2017 - Possible takeover of some of existing banks in Serbia

In the first half of this year, Sberbank Serbia had a profit of 635 million dinars, which is 35% more than in the same period last year. According to president of the Executive Board of the bank, Marijana Vasilesku, "Srberbanka had the highest growth in its retail business, primarily thanks to cash loans that increased by as much as 43% to 3.3 billion dinars."

- Good results have been achieved as the number of clients increased, efficiency of the business improved, and optimization of operating expenses was achieved, - Vasilesku said, adding that Sberbank is among top five banks in Serbia according to the share of operating expenses in revenues, and that it keeps increasing capital adequacy which was at the end of June 23.86%.

Vasilesku pointed out that profit of the bank in retail business in the first six months this year amounted to 477 million dinars which is an increase of 79% compared to the same period in 2016.

Total Sberbank loans to population increased by 23%, or more than one billion dinars, while citizens' deposits increased by 10% to 31.5 billion dinars.

- Increase in deposits is the best indicator of customer confidence, while a significant increase in cash loans to households, as much as 43%, indicates that we have recognized the needs of our clients - Marijana Vasilesku stated and announced better conditions for approving cash and refinancing loans, as well as for housing loans .

Since 2016, Sberbank in Serbia reduced amount of problem loans by EUR 41m, and is planning to offer a portfolio of about EUR 40 m of unsecured loans by the end of this year.

When it comes to the plans of a bank in Serbia,, Vasilesku says Sberbank intends to expand in Serbia and it is possible to take over some of the existing banks.

- We are interested in inorganic growth of a bank and possible acquisition. For now, we are looking at the situation on the market in order to be ready to react if an opportunity arises, Vasilesku said, adding that Sberbank has financial power for such a transaction.

(Marijana Vasilesku) Sberbank has a total of 33 branches and 640 employees in Serbia. As they say, current number of branch offices is optimal for business, as customers increasingly use digital channels and bank is present at many additional locations in cooperation with its partners.
Bridge between Serbian and Russian companies

Sberbank Serbia positioned itself on the market as a bridge between Serbian and Russian companies with a significant share in foreign trade with Russia, which is now about 19% of total turnover. Vladimir Boskovic, executive director of business for economy, said that company's goal in the future period is to promote even better cooperation between Serbian and Russian companies and greater exports from Serbia to that country.

When it comes to dealing with economy, placements to small and medium-sized enterprises recorded growth of as much as 34%, with the growth of the number of clients.

Among the plans for the next period in business with legal entities, Bošković states even stronger promotion of factoring and multi-currency accounts that makes it easier for clients to do business without any additional costs..

The bank is also planning to become even more seriously involved in project financing, in two directions.

Construction sector is awake and we are planning to finance projects in this area, Bošković said, adding that other direction refers to financing projects in renewable energy sources segment.

Regarding micro and small companies, in Sberbank they say that currently more than 70% of total financing goes towards liquidity, while bank is planning to increase investments financing.

- We prepared new products for this segment and we are also doing a very detailed portfolio and business analysis to help clients improve their business, - Marijana Vasilesku said for eKapija.

Bank in Serbia has nothing to do with relation of Sberbank Russia and Agrokor

Commenting on Sberbank's operations with Croatian Agrokor companies in Serbia, Vasilesku said that the bank had no controversial claims from Agrokor's companies in Serbia, unlike Sberbank Russia, and that it has nothing to do with blockade on share of Agrokor in Frikom.

- Sberbank Serbia did not initiate any procedure nor has claims in Serbian companies which are part of Agrokor - she said, adding that although she cannot comment on the procedures of Sberbank Russia in the process of collecting claims from Agrokor, it is certain that the bank will "use all Instruments at their disposal ".

- Agrokor's companies in Serbia are clients of Sberbank and the process of collecting receivables from Sberbank Russia is separate from our business with them - Vasileka said for eKapija and added that cooperation with this company is functioning without any problems.

M.V.

Naša AIK Banka a.d. Beograd

Sberbanka

profit Sberbank

income Sberbank

Marijana Vasilesku

Cash loans

cash loans

refinancing loans

housing loans

problem loans

non-performing loans

Vladimir Boskovic

loans for the economy

factoring

multi-currency accounts

renewable energy sources

Sberbank Russia

Agrokor