Notes to the unconsolidated financial statements - Raiffeisen Bank

Annual Report
2010

Survey of key data
Raiffeisen BANK d.d. Bosna i Hercegovina
Monetary values in EUR mio
Income statement
2010 2009 Change
Net interest income after provisioning 33.62 36.93 -9.0%
Net commission income 27.10 24.64 10.0%
Trading profit 8.31 4.76 74.5%
General administrative expenses 61.85 58.78 5.2%
Profit before tax 4.03 4.90 -17.8%
Profit after tax 3.00 4.28 -29.8%
Balance sheet
Loans and advances to banks 127.97 361.09 -64.6%
Loans and advances to customers 1,146.92 1,184.01 -3.1%
Deposits from banks 300.72 490.23 -38.7%
Deposits from customers 1,340.97 1,392.52 -3.7%
Equity (incl. profit) 190.16 187.65 1.3%
Balance sheet total 1,903.15 2,145.87 -11.3%
Regulatory information
Risk weighted assets 1,590.50 1,715.00 -7.3%
Capital adequacy ratio 14.9% 14.3% 0.6 PP
Performance
Return on equity before tax 2.1% 2.7% -0.5 PP
Return on equity after tax 1.6% 2.3% -0.7 PP
Cost/income ratio 66.4% 69.1% -2.7 PP
Return on assets before tax 0.2% 0.2% 0.0 PP
Resources
Number of employees 1,634 1,676 -2.5%
Business outlets 92 95 -3.2%

Content
Annual Report 2010
Report by the Chairman of the Supervisory Board ........................................................................18
Preface by the Chairman of the Management Board ....................................................................20
Macroeconomic Overview...........................................................................................................22
Raiffeisen Bank International at a glance .....................................................................................26
Raiffeisen BANK d.d. Bosna i Hercegovina...................................................................................28
The Management Board .............................................................................................................30
Organisational Structure.............................................................................................................36
Balance Sheet ............................................................................................................................38
Statement of Income...................................................................................................................39
Key financial indicators ...............................................................................................................40
Corporate Banking.....................................................................................................................45
Micro Businesses and Sole Proprietors .........................................................................................47
Retail Banking ............................................................................................................................50
Investment Banking ....................................................................................................................56
Treasury and Financial Markets ...................................................................................................59
Head Office and Branches..........................................................................................................66
Addresses and Contacts..............................................................................................................67
Responsibility for the Financial Statements....................................................................................72
Independent auditors’ report.......................................................................................................73
Unconsolidated Statement of Income...........................................................................................74
Unconsolidated Statement of comprehensive income....................................................................75
Unconsolidated Balance sheet.....................................................................................................76
Unconsolidated Statements of cash flow ......................................................................................77
Unconsolidated Statements of changes in shareholders’ equity .....................................................78
Notes to the unconsolidated financial statements .........................................................................79
www.raiffeisenbank.ba 3

Report by the Chairman of the Supervisory Board
18
Report by the Chairman
of the Supervisory Board
www.raiffeisenbank.ba
Ladies and Gentlemen,
Although most banking executives remember 2009 as an incredibly intensive
year, 2010 raised the bar again for intensity. This time, however,
the bulk of our efforts were internal, as we were working on a major reorganization
of our Group. Raiffeisen International, the former parent
company of Raiffeisen BANK dd Bosna i Hercegovina, was merged with
the principal business areas of Raiffeisen Zentralbank (RZB) to form Raiffeisen
Bank International (RBI), which was entered in the commercial register
in October. One of the goals of the merger was to combine the dense
network of Raiffeisen International in CEE with RZB's product development
expertise in the field of corporate and investment banking, thereby generating
added value for both our customers and shareholders. In addition,
RBI now benefits from even better refinancing opportunities – where Raiffeisen
International previously accessed the equities market and RZB used the debt market, the new RBI
can now access both.
2010 was also the year in which our home market Central and Eastern Europe (CEE) showed the first
signs of improvement, after the outflow of liquidity at year-end 2008 and the resulting economic downturn.
The sharp declines in growth in 2009 were replaced by a return to real gains in economic performance.
Besides the growing stabilization in CEE, economists expect that these markets will return to
a higher level of growth than in the eurozone. We expect economic growth in CEE to be around 2 percentage
points greater than in the western European economies. The driver for this trend is the continuing
high potential for catch-up in the region, which should re-emerge in the long term as Europe's growth
zone. Despite the merger and resulting expansion of our area of activity, CEE will continue to be the central
focus of our strategy.
Our result for 2010 shows that we took the right countermeasures during the crisis. Despite the continuing
slight rise in nonperforming loans, which we expect to finally peak in the course of 2011, the
RBI Group achieved a consolidated profit of EUR 1,087 million. This represents growth of 142 per cent
on the previous year, which is a strong performance even by international comparison. The emerging
economic recovery, the measures initiated in the current year to improve our efficiency and competitiveness
as well as the trust shown by our customers and shareholders give me confidence for our whole
group for 2011.
Despite the fact that the recession entered Bosnia and Herzegovina with a time lag behind the countries
of the European Union and the fact that its economy was insufficiently developed even before the
recession, the country started to register positive economic development in the second half of the year,
which is especially gratifying. We hope that this upward momentum will continue and show even stronger
rates during 2011.
The arrangement with the IMF played a decisive role in consolidating the country's financial system. We
are firmly convinced that this will continue in the next year, and eventually help strengthening the sustainability
of public finances in Bosnia and Herzegovina and increasing the national economy's competitiveness.
At the same time, an increased political risk might have an adverse effect on these
developments and slow down the economic growth, which, in turn, might reduce both capital flows to
Bosnia and Herzegovina and the presence of foreign investors.

Report by the Chairman of the Supervisory Board
The trends in the banking sector are identical to those in the real sector, which is evident in the positive
trend reversal in loans and total banking assets, which started rising again. Raiffeisen BANK dd Bosna
i Hercegovina, as the country's leading banking institution and one of the key factors in the local banking
system, contributed substantially to the positive economic developments by its business operations.
Our customers recognised our efforts and provided us with their full support, which we greatly appreciate.
The Raiffeisen brand has always been and remains a trusted brand that both existing and future
customers of our bank can always rely on.
Despite the legal restrictions for its operations, the Central Bank of Bosnia and Herzegovina has shown
a high level of involvement and understanding of the situation faced not only by the banks operating in
the country but also by the national economy as a whole. The Central Bank always sought to find the most
appropriate models to overcome the challenges for the financial sector and, indirectly, for the real sector.
In doing so, it once again proved its active role in the country's economy and financial sector.
Unfortunately, despite the huge efforts, the net results of the banking sector were negative. The sector
ended 2010 with a net loss of EUR 63.5 million, which was mainly due to the increase of non-performing
loans. Their upward momentum will, unfortunately, continue to shape the country's banking sector during
2011. Raiffeisen BANK dd Bosna i Hercegovina, however, succeeded in achieving a positive result.
While it was below the levels we had seen in previous years, it was still satisfying considering the environment
in which it was made. Raiffeisen BANK dd Bosna i Hercegovina will continue applying measures
to further reduce the level of non-performing loans, while at the same optimising costs and
increasing efficiency, which should both further increase customer satisfaction and improve our business
results in the period ahead.
We sincerely thank the management and all employees of the bank whose tireless efforts made the
achievement of our goals possible, and whose contribution was as great as in previous years.
Herbert Stepic
Chairman of the Supervisory Board
www.raiffeisenbank.ba 19

Preface by the Chairman of the Management Board
20
Preface by the Chairman
of the Management Board
www.raiffeisenbank.ba
The successful end of the business year 2010 brings great relief, as it was
one of the most challenging years in our history. Like the previous two
years, 2010 will probably be remembered for the challenges, uncertainties
and expectations that shaped it. It is my great pleasure to announce
that we managed to cope with them well by taking the right countermeasures.
Consequently, our business result for 2010 was even better than
expected, although, for obvious reasons, it was below the levels we were
used to in the past years and below the results that we will strive for in the
coming years, considering the environment we operate in.
Our business strategy again proved to be successful and appropriate. We
will continue to follow it next year. Despite the challenging environment,
we managed to keep our market position as the country's no. 1.
Our business results would not have been possible without the support of our customers, who continued
to place their trust in us. In appreciation of this trust, we offered them attractive and competitive financial
solutions geared to their needs and the challenges they face, and will continue doing so in the
future.
Due to our market position, the financial community, the media and the general public all kept a close
eye on us and evaluated our results. Beside the Golden BAM, we received numerous international
awards and were honoured as the most desirable employer in B&H. The latter is of special importance
for us considering the time and the economic environment in which we received it.
The past year was shaped for us by the organisational changes in the Group – the merger of Raiffeisen
International with the principal business areas of RZB to form a new and even stronger Raiffeisen Bank
International. We are convinced that our shareholders have taken the right step that will help us to further
strengthen our strong positioning in the years to come.
The macroeconomic forecasts for the next year are moderately optimistic. However, this optimism should
be taken with caution, as the growth forecasts for 2011 were only focused on some industry sectors and
many business entities and private individuals will continue to feel the effects of the crisis and the recession
during 2011.
Nevertheless, we will, as always, strive to not only making our offers even more attractive, but also
finding acceptable financing models in order to continue to be what we already are in the eyes of our
customers – a reliable partner and strong support, in all respects.
Michael Müller
Chief Executive Officer

Macroeconomic Overview
22
Macroeconomic Overview
www.raiffeisenbank.ba
The two-year period of expansive monetary policy and fiscal policy measures taken by West European
countries and the USA in response to the most severe financial and economic crisis since 1930 contributed
decisively to ending the recession in 2010. The fiscal stimulus packages started to show their first
effects on the sustainability of the fiscal imbalances and debt levels of certain euro zone countries, after
Greece and Ireland sought assistance from the members of the euro zone and the IMF 1 , which turned
the “peripheral debt crisis” 2 into a threat to both the upward economic momentum and the returning
confidence in the financial markets. The past year will nevertheless be remembered worldwide as a year
of growth in most developed capital markets and year of foreign trade revival and return to positive economic
growth rates in the leading world economies – the euro zone countries and the USA – aided by
real GDP 3 growth rates of 1.7 per cent and 2.9 per cent, respectively. The greatest challenges that the
leading world economies and leaders will have to cope with in the year to come will certainly be finding
an efficient way to curb the debt crisis in Europe and prevent systematic risk from arising again.
Due partly to the significant delay at which they entered the recession and partly to their small and
open economies' heavy dependence on economic developments in the European Union, the Southeast
European countries, including Bosnia and Herzegovina, will remember 2010 for being a year of economic
stagnation, and in some cases, even negative economic growth (the region registered an average
real economic growth rate of -0.9%). In Bosnia and Herzegovina, the first positive economic trends
began to appear in the second half of the year. This was primarily due to recovered demand from the
countries of the European Union and the strong export growth in Bosnia and Herzegovina, which led
to positive growth rates in certain industrial branches, and eventually caused total industrial output to
rise by 1.6 per cent on average in 2010. Exports grew at a growth rate of 27.7 per cent in 2010. Imports,
on the other hand, rose by 10.3 per cent year-on-year, due to weakened domestic demand. Despite
the positive contribution that came from the foreign trade sector and exports, the remaining
components of domestic demand, such as domestic consumption and investments, were recovering
only slowly under the burden of growing unemployment rates, reduced salaries and less available personal
income. Limited lending activities in the entire banking sector in 2010 also contributed to that.
Against this background, the real economic growth in Bosnia and Herzegovina should come to only
about 0.5 per cent.
After the strong deflationary pressure caused by the economic downturn last year, factors on the demand
side had a strong hand in shaping the development of inflation in 2010. These were, most notably, the
tax rate increase on excise goods at the beginning of the year and the downward pressure of rising world
market prices for oil later in the year. After the increase in the excise duty on tobacco products, inflation
reached a level of 2 per cent already in the first quarter. In the second half of the year, and especially
in the final quarter, the downward pressure of rising world market prices for oil produced an
additional “import inflation effect” and caused inflation to rise to 3.1 per cent in December 2010. Nonetheless,
the average inflation rate for the full year remained moderate at 2.1 per cent, due to the
strong deflationary pressure on weak domestic demand, caused partly by high unemployment rates and
partly by the low general purchasing power due to reduced available income.
The three-year arrangement signed with the IMF in July 2009 had strong positive effects on the sustainability
of public finances, thanks to the consolidation measures taken in the huge state apparatus and
in the area of public consumption. During 2010, three tranches in the total amount of EUR 180.4 million
were drawn on the Stand-by arrangement. This made the IMF the country's second-largest credi-
1 International Monetary Fund
2 Peripheral Euro zone countries: Ireland, Portugal, Spain, Italy and Greece
3 Gross domestic product

tor but also increased the country's public debt by 19.4 per cent compared with the previous year and
raised it to a level of 25.6 per cent of GDP in 2010. The Stand-by arrangement should remain a decisive
factor in the further consolidation of public sector spending and saving, and help continuing the
reforms in the social and pension system. This would not only strengthen the sustainability of public finances
in Bosnia and Herzegovina but also increase the national economy's competitiveness.
Building a new government as soon as possible and establishing constructive dialogue within the future
governing coalition are indispensable preconditions for the continuation of the mentioned public
sector and structural reforms. These reforms are the key drivers of the country's economic growth and
its EU approximation, and should help improving national living standards. Further delays in building
the government and standstills in the reform process are some of the risk that could drag the positive
economic growth, on the one hand, and convey a bad message to potential foreign investors and slow
down capital flows to Bosnia and Herzegovina, on the other.
Thanks to conservative business principles and high levels of capitalisation and liquidity, the banking
sector managed to remain stable even in the very difficult economic and business environment in 2010.
Unsurprisingly, the rise in unemployment rates, the decrease in real available household income, combined
with less revenues and scarce liquidity in the corporate sector, caused a significant deterioration
of the loan portfolio in the entire banking sector. This, in turn, caused a sharp rise in non-performing
loans and a related increase of provisioning costs. Due to these factors, the country's banking sector
ended the year 2010 with a net loss of EUR 63.5 million, for the first time in seven years. The share of
non-performing loans in total loans almost doubled in comparison with 2009 and reached 11.4 per
cent. Nevertheless, the banking sector continued to show exceptional financial stability and soundness,
despite the negative trends seen in the real economy. The degree of capitalisation, expressed in the capital
adequacy rate, was 16.2 per cent and thus significantly above the legally required 12 per cent.
Driven by continuously rising provisions, liquidity in the banking sector – which is measured by the
share of cash and marketable cash in total banking assets – was slightly lower than in the preceding
year, but still remained at a remarkable level of 29 per cent.
The real sector showed first signs of recovery in the second half of 2010. This led to a trend reversal in
loans and total banking assets, which returned to positive growth rates after the contraction recorded
in the previous year. The combined assets of the banking sector rose by 1.82 per cent. As a result, the
sector's financial strength in relation to the real sector – as measured by the share of banking assets in
the GDP – rose to 86.2 per cent. This growth of total banking assets was driven by the return to positive
loan growth rates, which started in the second half of the year and reached 3.4 per cent in December
2010. The sector of private and public enterprises, as well as the public sector, contributed
decisively to the upward momentum in loan growth. It is particularly gratifying to see that retail loans
recorded positive growth rates for the first time in December 2010, after 17 months of contraction.
The extremely high level of robustness and trust in the banking sector can be easily illustrated by the
fact that deposits rose continually in 2010 to reach a growth rate of 2.8 per cent at the end of the year.
The key driver of the growth in total banking deposits was the retail sector, which posted a rise of high
14.6 per cent, while the corporate sector registered very low growth rates, only in the second half of
the year.
There were three M&A 4 transactions in the banking sector in 2010. This should reduce the number of
banks operating in the country to 29. The consolidation trend is expected to continue in the years to
come. The banking sector concentration indicator (CR 5) shows an upward trend, as the country's top
five banking groups have an aggregate market share of nearly 80 per cent in total banking assets.
The Central Bank of Bosnia and Herzegovina has again demonstrated willingness to gear its activities
to the needs of the banking sector and the national economy, by increasing access to the monetary tools
available to it within the very conservative currency board it is guided by. According to announcements
4 Corporate actions of mergers and acquisitions
Macroeconomic Overview
www.raiffeisenbank.ba 23

Macroeconomic Overview
24
www.raiffeisenbank.ba
made by the Central Bank of Bosnia and Herzegovina at the beginning of 2011, the Governing Board
of the Central Bank of Bosnia and Herzegovina will lower the legal reserve requirement on deposits with
maturities up to one year, from 14 per cent to 10 per cent. This will make additional liquidity of around
EUR 150 million available for the banking sector. The legal reserve requirement on term deposits with
a maturity of more than one year is likely to remain unchanged at 7 per cent.
The next year should bring a gradual recovery of the real sector and positive economic growth, as well
as somewhat higher asset growth rates and increased lending activities compared with 2010, albeit
growth rates will be much more moderate than before the financial and economic crisis. Very slow
market recovery with unchanged unemployment rates, on the one hand, and business difficulties and
liquidity shortage in the corporate sector on the other, will remain not only the key obstacles to finding
good lending opportunities but also the key threats to stopping further impairments of loan quality. The
expected further improvements in the regulatory framework, the positive economic trends and the continued
arrangement with the IMF, combined with the existing stability and soundness of the banking sector,
will certainly increase access to foreign credit lines for lending to the national economy, as a key
precondition for further economic recovery.
Chief Economist
Ivona Kristi}

Key economic figure
Macroeconomic Overview
2007 2008 2009 2010e 2011f 2012f
Nominal GDP (in EUR bn) 11.1 12.6 12.3 12.5 13.2 14.0
Real GDP (% yoy) 6.2 5.7 -2.9 0.5 2.0 4.5
GDP per capita (EUR) 2,896 3,288 3,194 3,254 3,253.5 3,621.5
GDP per capita (EUR in PPP) 6,300 6,700 6,600 6,700 6,800 7,000
Private consumption (real growth % yoy) 5.9 5.9 -4.3 0.0 2.0 4.0
Gross investment (real growth % yoy) 40.9 11.1 -29.2 0.5 3.5 5.5
Industrial output (% yoy) 6.0 10.2 -3.3 1.6 4.0 6.0
Production prices (average % yoy) 0.6 7.5 -0.5 0.6 2.0 1.7
Consumer prices – inflation (average % yoy) 1.5 7.4 -0.4 2.1 3.0 2.1
Average gross salaries in industry (% yoy) 7.1 8.2 3.0 1.0 3.0 5.5
Unemployment rate (average %) 43.9 40.1 41.8 42.7 42.0 40.0
Budget deficit (% GDP) 1.2 -2.2 -4.5 -4.0 -3.4 -3.0
Public foreign debt (% GDP) 18.2 17.2 21.7 25.6 33.5 35.0
Trade deficit (% GDP) -36.7 -38.3 -28.3 -26.6 -25.7 -25.5
Current account deficit (% GDP) -10.7 -14.4 -6.8 -6.0 -7.3 -7.1
Net foreign investments (% GDP) 13.6 5.7 3.7 2.9 3.3 4.4
Foreign reserves (in EUR bn) 3.4 3.2 3.2 3.3 4.1 4.7
Gross foreign debt (% GDP) 47.5 49.0 54.1 58.3 59.0 60.0
EUR/KM (eop.) 1.96 1.96 1.96 1.96 1.96 1.96
EUR/KM (average) 1.96 1.96 1.96 1.96 1.96 1.96
USD/KM (eop.) 1.34 1.41 1.37 1.48 1.45 1.56
USD/LCY (average)
Source: Thomson Reuters, wiiw, Raiffeisen RESEARCH
1.43 1.33 1.40 1.48 1.38 1.53
Overview of banking sector developments
Balance sheet data
2004 2005 2006 2007 2008 2009 2010
Total assets, EUR mn 4,806.04 6,071.39 7,515.22 9,980.32 10,761.77 10,584.97 10,777.20
growth in % yoy 22.3% 26.3% 23.8% 32.8% 7.8% -1.6% 1.8%
Total credits, EUR mn 3,030.50 3,857.20 4,759.10 6,109.50 7,442.20 7,209.20 7,454.80
growth in % yoy 15.7% 27.3% 23.4% 28.4% 21.8% -3.1% 3.4%
Total deposits, EUR mn 2,852.10 3,515.70 4,498.60 6,187.00 6,103.90 6,231.70 6,403.90
growth in % yoy 27.8% 23.3% 28.0% 37.5% -1.3% 2.1% 2.8%
Total deposits, in % of total credits 106.3% 109.7% 105.8% 98.7% 121.9% 115.7% 116.4%
Structural information
Number of banks 33 33 32 32 30 30 29
Market share of state-owned
banks, in %
80 90.7 94.0 93.7 95.0 94.6 94.6
Return on assets (RoA) 0.7 0.7 0.9 0.9 0.4 0.1 -0.6
Return on equity (RoE) 5.8 6.2 8.4 8.9 4.3 0.8 -5.5
Non-performing loans
(% of total loans)
Source: Central Bank of B&H, Banking Agency of FB&H, Banking Agency of RS
6.1 5.3 4.0 3.0 3.1 5.9 11.4
www.raiffeisenbank.ba 25

Raiffeisen Bank International at a glance
26
Raiffeisen Bank International
at a glance
www.raiffeisenbank.ba
Raiffeisen BANK d.d. Bosna i Hercegovina is a subsidiary of Raiffeisen Bank International AG (RBI), a
leading universal bank in Central and Eastern Europe (CEE) and one of the foremost providers of corporate
and investment banking services in Austria. RBI originated from the merger of the spun-off business
areas of Raiffeisen Zentralbank Österreich AG (RZB) with Raiffeisen International Bank-Holding AG.
The transaction was legally completed in October 2010. RBI is a fully-consolidated subsidiary of RZB,
which owns 78.5 per cent of the bank's common stock. The remainder is in free float, with the shares
listed on the Vienna Stock Exchange.
RBI offers corporate and investment banking for Austrian and international companies, an extensive
banking and leasing network in CEE for both corporate and retail customers, as well as corporate and
investment banking services in Asia and the world's principal financial centres. The group's subsidiary
banks are present in the following Central and Eastern European markets:
• Albania Raiffeisen Bank Sh.a.
• Belarus Priorbank, OAO
• Bosnia and Herzegovina Raiffeisen BANK d.d. Bosna i Hercegovina
• Bulgaria Raiffeisenbank (Bulgaria) EAD
• Croatia Raiffeisenbank Austria d.d.
• Czech Republic Raiffeisenbank a.s.
• Hungary Raiffeisen Bank Zrt.
• Kosovo Raiffeisen Bank Kosovo J.S.C.
• Poland Raiffeisen Bank Polska S.A.
• Romania Raiffeisen Bank S.A.
• Russia ZAO Raiffeisenbank
• Serbia Raiffeisen banka a.d.
• Slovakia Tatra banka, a.s.
• Slovenia Raiffeisen Banka d.d.
• Ukraine VAT Raiffeisen Bank Aval
The parent company of these banks is RBI, whose shareholding in them is at or near to 100 per cent
in most cases. The Raiffeisen Bank International Group also includes many finance leasing companies
(including one each in Kazakhstan and Moldova) and a number of other financial service providers.
In Western Europe and the USA, RBI operates a branch in London and representative offices in Frankfurt,
Madrid, Milan, Paris, Stockholm, and New York. A finance company in New York and a subsidiary
bank in Malta complement the scope of the bank's presence. In Asia, the Group's second geographical
focus, RBI runs branches in Beijing, Xiamen and Singapore, a finance company in Hong Kong, as
well as representative offices in Ho Chi Minh City, Hong Kong, Mumbai and Seoul. This strong presence
clearly underlines the Group's emerging markets strategy.
In addition to its banking operations, RBI runs several specialist companies in CEE that offer solutions
in a wide variety of areas, including M&A, equity investment, real estate development, project management
and fund management.
The RBI Group's consistent commitment to quality is regularly reflected by a broad range of local and
international awards, including by such leading finance industry publications as “The Banker”, “Euromoney”
and “Global Finance”.

RZB and the Austrian Raiffeisen Banking Group
RBI is a subsidiary of Vienna-based RZB. Founded in 1927, RZB is the steering holding of the entire RZB
Group and the central institution of the Austrian Raiffeisen Banking Group (RBG), the country's largest
banking group.
RBG represents approximately a quarter of all banking business in Austria and comprises the country's
largest banking network, with 527 independent banks and 1,684 branches (year-end 2010). As of
year-end 2010, RBG's consolidated balance-sheet total amounted to €255 billion. RBG's three-tiered
structure consists of Raiffeisenbanks on the local level, Regional Raiffeisen Banks on the provincial level
and RZB as central institution. Raiffeisenbanks are private cooperative credit institutions, operating as
general service retail banks. Each province's Raiffeisenbanks are owners of the respective Regional Raiffeisen
Bank, which in their entirety own approximately 88 per cent of RZB's ordinary shares. The cooperative
idea on which the Raiffeisen organisation is based reflects the principles and work of the German
social reformer Friedrich Wilhelm Raiffeisen (1818-1888).
www.rbinternational.com
www.rzb.at
Raiffeisen Bank International at a glance
www.raiffeisenbank.ba 27

Raiffeisen BANK d.d. Bosna i Hercegovina
28
Raiffeisen BANK d.d.
Bosna i Hercegovina
www.raiffeisenbank.ba
Raiffeisen BANK d.d. Bosna i Hercegovina is a subsidiary of Raiffeisen Bank International AG (RBI), a
leading universal bank in Central and Eastern Europe (CEE) and one of the foremost providers of corporate
and investment banking services in Austria. RBI originated from the merger of the spun-off business
areas of Raiffeisen Zentralbank Österreich AG (RZB) with Raiffeisen International Bank-Holding AG.
Our bank has been operating as a financial institution since November 1992 when it was first founded
as Market Banka d.d. Sarajevo, backed predominantly with private capital of over 90%. Thanks to its
exceptional performance, our bank quickly stood out as a very successful and profitable player.
Between 1996 and 2000 we were one of the leading partner banks to international financial institutions
(World Bank, IFC, KfW, SOROS and EBRD) in implementing their credit lines. The British financial
magazine Central European awarded Market Banka the title of the best banking institution in Bosnia
and Herzegovina in 1999. On 21 July 2000 Raiffeisen Zentralbank Österreich AG-Vienna acquired Market
Banka and successfully integrated it into the Raiffeisen network under the name Raiffeisen BANK d.d.
Bosna i Hercegovina.
In May 2001 RZB became the sole owner of Hrvatska Poštanska banka which was then renamed Raiffeisen
BANK HPB. Since 1 January 2003, when Raiffeisen BANK HPB was successfully integrated with
Raiffeisen BANK, we have been operating under a single name, Raiffeisen BANK d.d. Bosna i Hercegovina.
This acquisition has further strengthened our position in the market in Bosnia and Herzegovina:
our balance sheet has grown to over KM one billion and our branch network has undergone
significant expansion.
Ownership Structure of Raiffeisen BANK d.d. Bosna i Hercegovina:
Raiffeisen International Bank-Holding AG 96.99%
Millenia Beteiligungsverwaltungs GmbH 3.00%
Other shareholders 0.01%
As of 31 December 2010 our bank operated through a network of 92 offices and had 1,634 employees.
The numerous national and international awards are testimony to our success. They include: “The Best
Bank in BiH” and “The Best Internet Bank” from Global Finance; “The Best Bank in BiH” from Euromoney;
“Bank of the Year” from The Banker; “The Most Active Trade Finance Bank in the Region” from
EBRD; and the national awards “Zlatni BAM” and “Kristalna prizma”.
Our bank retains its competitive edge in the B&H market in part through investments in new technologies,
our experienced and trained staff who undergo continual professional education, our focus on an
individual approach to each customer and the introduction of new distribution channels and modern
products and services.
In addition to Raiffeisen BANK, the Raiffeisen Group is represented in Bosnia and Herzegovina by Raiffeisen
Brokers and Raiffeisen Leasing.

Vision
• Raiffeisen is the leading financial services Group in Bosnia and Herzegovina.
Client satisfaction is at the highest level.
Mission
Raiffeisen BANK d.d. Bosna i Hercegovina
• We achieve highest client satisfaction, offer excellent service quality and the full range of
banking, leasing, insurance and brokerage products. We set standards in partnering
and are committed to long-term relationships with our clients.
• Our employees are the key contributors in achieving our vision and strategic goals. Their
commitment, loyalty and motivation lead to a unique team-spirit and strong corporate
culture. We strongly support the personal development of our employees.
• We achieve the highest level of sustainable profitability in B&H banking market in order
to fulfil shareholders expectations.
• We see ourselves as a responsible part of society in supporting local developments and
initiatives with the goal of creating value.
The international Raiffeisen logo is the Gable Cross. It consists of two stylized crossed
horses' heads and can be traced back hundreds of years to European folk traditions.
It is a symbol of defence against evil and life's dangers and can still be found on rural
houses in Central Europe. According to their founder's objectives, Raiffeisen's members
have safeguarded themselves against economic hazards by uniting within the
cooperative and therefore chose the Gable Cross as an emblem of protection under a shared roof. The
logo has developed into an internationally well-known and very positively associated trademark and is
in use around the world.
www.raiffeisenbank.ba 29

Organisational Structure

Balance Sheet
38
Balance Sheet
as at 31 December 2010 and 2009
ASSETS
www.raiffeisenbank.ba
2010
(000 KM)
2010
(000 EUR)
2009
(000 KM)
2009
(000 EUR)
Cash and cash equivalents 434,964 222,393 432,260 221,011
Obligatory reserve at Central Bank 305,865 156,386 343,007 175,377
Placements with other banks 250,282 127,967 706,226 361,088
Loans and receivables 2,243,190 1,146,925 2,315,721 1,184,009
Securities available for sale 2,241 1,146 2,558 1,308
Securities at fair value through profit and loss 1,664 851 1,852 947
Investments in subsidiaries 2,288 1,170 2,276 1,164
Investments in associates 8,173 4,179 3,380 1,728
Bonds at fair value through profit and loss 163,120 83,402 118,781 60,732
Bonds held to maturity 137,408 70,255 104,965 53,668
Deferred tax assets 469 240 162 83
Other assets 16,971 8,677 24,571 12,563
Property, equipment and intangible assets 155,598 79,556 141,203 72,196
TOTAL ASSETS 3,722,233 1,903,147 4,196,962 2,145,874
LIABILITIES
Due to banks 588,150 300,716 958,807 490,230
Due to customers 2,622,705 1,340,968 2,723,531 1,392,519
Provisions 24,825 12,693 23,391 11,960
Other liabilities 32,613 16,675 27,564 14,093
Subordinated debt 82,016 41,934 96,663 49,423
TOTAL LIABILITIES 3,350,309 1,712,986 3,829,956 1,958,225
SHAREHOLDERS’ EQUITY
Share capital 241,861 123,662 241,861 123,661
Reserves and retained earnings 130,063 66,500 125,145 63,986
TOTAL SHAREHOLDER’S EQUITY 371,924 190,162 367,006 187,647
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 3,722,233 1,903,148 4,196,962 2,145,872
FINANCIAL COMMITMENTS AND CONTINGENCIES 898,766 459,532 866,510 443,040

Statement of Income
for the years ended 31 December 2010 and 2009
2010
(000 KM)
2010
(000 EUR)
2009
(000 KM)
Statement of Income
2009
(000 EUR)
Interest income 210,296 107,523 241,116 123,281
Interest expense (86,540) (44,247) (123,414) (63,101)
Net interest income 123,756 63,276 117,702 60,180
Fee and commission income 61,099 31,239 55,107 28,176
Fee and commission expense (8,090) (4,136) (6,907) (3,531)
Net fee and commission income 53,009 27,103 48,200 24,645
Net financial income 16,256 8,312 9,316 4,763
Other operating income 3,066 1,568 2,751 1,406
Operating income 196,087 100,259 177,969 90,994
Administrative expenses (120,965) (61,848) (114,969) (58,783)
Depreciation of tangible fixed assets (7,626) (3,899) (6,798) (3,476)
Amortization of intangible fixed assets (1,609) (823) (1,151) (588)
Operating Expense (130,200) (66,570) (122,918) (62,847)
PROFIT BEFORE IMPAIRMENT LOSSES,
PROVISIONS AND INCOME TAX
65,887 33,689 55,051 28,147
Impairment losses and provisions (69,497) (35,533) (53,603) (27,408)
Collected write-offs 11,487 5,873 8,132 4,158
PROFIT BEFORE INCOME TAX 7,877 4,029 9,580 4,897
Income tax (2,005) (1,025) (1,216) (622)
NET PROFIT FOR THE YEAR 5,872 3,004 8,364 4,275
Earnings per share 6.18 3.16 8.81 4.50
www.raiffeisenbank.ba 39

Key financial indicators
40
Key financial indicators
At year-end
www.raiffeisenbank.ba
The figures shown below are either extracted or recomputed from the Bank's audited financial statements.
2010
(000 KM)
2009
(000 KM)
2008
(000 KM)
2007
(000 KM)
Total assets 3,722,233 4,196,962 4,270,413 3,799,313
Deposits from customers 2,622,705 2,723,531 2,483,277 2,433,474
Loans to customers 2,243,190 2,315,721 2,819,874 2,405,697
Share capital 241,861 241,861 241,861 173,407
Share capital and reserves 130,063 125,145 357,610 279,449
Result for the year
Total income 215,664 193,008 215,398 199,707
Total operating expenses 207,787 183,428 180,073 169,206
Profit before tax 7,877 9,580 35,325 30,501
Profit after tax 5,872 8,364 27,583 26,132
Ratios
Return on assets 0.2% 0.2% 0.7% 0.7%
Return on equity 1.6% 2.3% 9.5% 12.2%
Cost/income ratio 66.4% 69.1% 64.6% 65.5%
At year-end
2010
(000 EUR)
2009
(000 EUR)
2008
(000 EUR)
2007
(000 EUR)
Total assets 1,903,148 2,145,873 2,183,427 1,942,558
Deposits from customers 1,340,968 1,392,519 1,269,679 1,244,215
Loans to customers 1,146,925 1,184,009 1,441,779 1,230,013
Share capital 123,662 123,662 123,662 88,662
Share capital and reserves 66,500 63,986 182,843 142,880
Result for the year
Total income 110,267 98,683 110,131 102,109
Total operating expenses 106,240 93,785 92,070 86,514
Profit before tax 4,027 4,898 18,061 15,595
Profit after tax 3,002 4,276 14,103 13,361
Ratios
Return on assets 0.2% 0.2% 0.7% 0.7%
Return on equity 1.6% 2.3% 9.5% 12.2%
Cost/income ratio 66.4% 69.1% 64.6% 65.5%

Total assets with loan data
2010
(000 KM)
2009
(000 KM)
2008
(000 KM)
2007
(000 KM)
Key financial indicators
2006
(000 KM)
Total assets 3,722,233 4,196,962 4,270,413 3,799,313 3,085,613
Loans to customers 2,243,190 2,315,721 2,819,874 2,405,697 1,785,820
2010
(000 EUR)
2009
(000 EUR)
2008
(000 EUR)
2007
(000 EUR)
2006
(000 EUR)
Total assets 1,903,148 2,145,873 2,183,427 1,942,558 1,577,649
Loans to customers 1,146,925 1,184,009 1,441,779 1,230,013 913,075
www.raiffeisenbank.ba 41

Key financial indicators
42
Lending
www.raiffeisenbank.ba
2010
(000 KM)
2010
(000 EUR)
2009
(000 KM)
2009
(000 EUR)
Change
%
Corporate loans 1,216,580 622,027 1,182,324 604,513 2.9%
Retail loans 1,153,610 589,831 1,251,716 639,992 -7.8%
Gross loans 2,370,190 1,211,859 2,434,040 1,244,505 -2.6%
Provisioning for impairment losses 127,000 64,934 118,319 60,496 7.3%
Net loans 2,243,190 1,146,925 2,315,721 1,184,009 -3.1%
Deposits from customers
2010
(000 KM)
2010
(000 EUR)
2009
(000 KM)
2009
(000 EUR)
2008
(000 KM)
2008
(000 EUR)
2007
(000 KM)
2007
(000 EUR)
Corporate deposits 958,899 490,277 1,197,151 612,094 1,113,403 569,274 1,001,497 512,057
Retail deposits 1,663,806 850,690 1,526,380 780,426 1,369,874 700,405 1,431,977 732,158

Total income (with structure)
2010
(000 KM)
2009
(000 KM)
2008
(000 KM)
2007
(000 KM)
Key financial indicators
2006
(000 KM)
Total income 215,664 193,008 215,398 199,707 160,842
Net interest income 123,756 117,702 137,858 122,997 97,434
Commission income 61,099 55,107 57,353 51,194 43,791
Other operating income 30,809 20,199 20,187 25,516 19,617
2010
(000 EUR)
2009
(000 EUR)
2008
(000 EUR)
2007
(000 EUR)
2006
(000 EUR)
Total income 110,267 98,683 110,131 102,109 82,237
Net interest income 63,275 60,180 70,486 62,887 49,817
Commission income 31,239 28,176 29,324 26,175 22,390
Other operating income 15,752 10,328 10,321 13,046 10,030
www.raiffeisenbank.ba 43

Key financial indicators
44
Comparison of operating expenses and total income
www.raiffeisenbank.ba
2010
(000 KM)
2009
(000 KM)
2008
(000 KM)
2007
(000 KM)
2006
(000 KM)
Total operating expenses 207,787 183,428 180,073 169,206 133,103
Total income 215,664 193,008 215,398 199,707 160,842
2010
(000 EUR)
2009
(000 EUR)
2008
(000 EUR)
2007
(000 EUR)
2006
(000 EUR)
Total operating expenses 106,240 93,785 92,070 86,514 68,054
Total income 110,267 98,683 110,131 102,109 82,237

Corporate
Banking
Corporate Banking
2010 was another year shaped by the financial crisis, but also the year in which the economy showed
the first signs of recovery. Thanks to its strength and safety Raiffeisen Bank’s Corporate Division managed
to keep its leading position in the corporate market.
By dealing fairly with our customers and providing them with financial support, we managed to retain
existing customers and acquire new ones, thus ending 2010 with more than 7,000 customers in our
base.
Even in a difficult and challenging year, Corporate managed to increase its loan portfolio by 4 per cent
compared with 2009. The focus of our corporate business was on high-quality projects, stricter monitoring
and maintenance of the portfolio quality, which helped us keep non-performing loans at a sound
level.
Despite the liquidity squeeze in the market, we managed to retain customer deposits and keep our deposit
base at KM 894 million.
To meet the needs of our customers, we focussed our efforts on improving our service quality, developing
new products and improving our existing product offering for corporate customers, gearing our
products to the real needs of the market and optimising processes.
Recognising the development objective of the EAF project, implemented by the World Bank and the
FBH Government to improve access to SME financing in Bosnia and Herzegovina, Raiffeisen Bank enhanced
its product offer with a new product – a long-term loan financed from a World Bank – ODRAZ
credit line.
In addition to that, Raiffeisen Bank created a new product jointly with USAID and SIDA: the SME credit
and guarantee fund.
The key factors that increased the profitability of operations were the continuous development and improvement
of products and processes, an emphasis on the cross sale of products and loan portfolio
quality, combined with an efficient and centralised sales management team.
www.raiffeisenbank.ba 45

Corporate Banking
46
Number of customers
Customer segment 2007 2008 2009 2010 Growth index
Public sector 434 191 190 218 1.15
Corporate 1,866 2,338 2,557 5,029 1.97
Financial institutions 122 128 121 142 1.17
Small enterprises 1,037 1,956 1,894 2,226 1.18
TOTAL 3,459 4,613 4,762 7,615 1.60
Loans (KM '000)
Customer segment 2007 2008 2009 2010 Growth index
Large corporates 520,130 611,747 508,194 528,112 1.04
Mid market companies 291,624 418,404 372,322 392,937 1.06
Public sector 15,031 19,348 20,345 34,859 1.71
Financial institutions 54,674 26,791 5,027 3,111 0.62
Small enterprises 138,470 253,693 175,568 163,377 0.93
TOTAL 1,019,929 1,329,983 1,081,456 1,122,396 1.04
Deposits (KM '000)
Customer segment 2007 2008 2009 2010 Growth index
Large corporates 402,872 601,714 645,679 465,125 0.72
Mid market companies 64,810 92,562 121,898 117,815 0.97
Public sector 253,143 162,977 197,786 182,747 0.92
Financial institutions 97,490 106,262 89,286 70,510 0.79
Small enterprises 59,573 60,145 53,080 57,850 1.09
TOTAL 877,889 1,023,660 1,107,729 894,047 0.81
Loans in 2010 Total deposits in 2010
www.raiffeisenbank.ba

Micro Businesses
and Sole Proprietors
Micro Businesses and Sole Proprietors
Although 2010 was shaped by the economic crisis and a loan contraction, Raiffeisen Bank successfully
continued its longstanding cooperation with the Micro Businesses and Sole Proprietors segments (customers
whose annual turnover is less than KM 2 million and where exposure is lower than KM 200,000).
A special focus was placed on the ongoing training of sales staff in order to improve the service quality
and build good and lasting customer relations.
To improve our business results, we recognised the needs of our customers and created many special
offers with attractive market prices.
Our main aim is to make capital more easily available to micro business and sole proprietors, to help
them keep their businesses running.
By constantly adapting ourselves to the market environment, we enriched our standard loan offer with
new products and special benefits, such as restructuring existing debt with additional capital and financing
energy efficiency projects and energy saving projects.
In the deposit area, all non-profit organisations were re-segmented into the legal entities category at
the beginning of 2010, which resulted in a drop of both sight and term deposits.
Compared with the end of 2009, sight deposits and term deposits fell by 34 per cent and 26 per cent,
respectively.
Despite the re-segmentation of non-profit organisations into large deposit generators and the overall
decline in deposits in the first quarter of 2010, the Micro segment recorded a continuous growth of sight
deposits. From the start of the business year until the end of December 2010, sight deposits grew by
13.5 per cent.
Our efforts to further improve the operating business continued again in 2010, of which the following
are particularly noteworthy:
• the implementation of a series of CRM campaigns
• the continuous improvement and up-grading of applications
• new product flyers
• the promotional campaign for the “My Business Instruments” segment
www.raiffeisenbank.ba 47

Micro Businesses and Sole Proprietors
48
Deposits
www.raiffeisenbank.ba
Chart of development of loans and deposits
(000 KM) 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sight deposits 86,431 57,153 54,166 52,928 52,634 55,183 55,535 58,749 60,881 63,319 63,917 63,044 64,878
Term deposits 10,793 7,956 7,959 7,945 7,883 7,527 7,344 7,037 6,558 6,260 6,153 5,805 5,490
Total 97,224 65,109 62,125 60,873 60,517 62,710 62,879 65,786 67,439 69,579 70,071 68,849 70,369

Loans
Micro Businesses and Sole Proprietors
(000 KM) 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Short term loans 43,302 41,663 42,535 44,108 44,158 43,962 44,030 42,571 42,265 42,926 42,069 42,692 42,911
Long term loans 57,609 55,585 55,258 55,912 56,795 56,847 56,858 56,164 54,895 54,440 54,122 53,065 52,363
Total 100,911 97,248 97,793 100,020 100,953 100,809 100,888 98,735 97,160 97,366 96,191 95,757 95,274
www.raiffeisenbank.ba 49

Retail Banking
50
Retail Banking
www.raiffeisenbank.ba
Deposits by Private Individuals
Deposits by private individuals increased in 2010. Their growth was driven by sight deposits which rose
by 35.97 per cent and long-term savings which increased by 4.60 per cent, or KM 43 million, compared
with the previous year.
This growth was the result of our ongoing efforts to preserve our customer's trust in the Bank and the
safety of their deposits. The following measures are particularly noteworthy:
• replacing variable interest rates by fixed interest rates,
• introducing a new deposit product without the possibility of early termination, and
• introducing the Premium banking service aimed at establishing lasting relations with affluent
customers, gaining a sustainable competitive advantage, strengthening our brand and increasing
customer satisfaction.
Deposits by private individuals
(000 KM) 2007 2008 growth in % 2009 growth in % 2010 growth in %
Short term savings 124,509 89,979 -27.73% 152,664 69.67% 89,424 -41.42%
Long term savings 773,471 827,426 6.98% 933,983 12.88% 976,968 4.60%
Sight deposits 528,287 450,901 -14.65% 438,248 -2.81% 595,892 35.97%
Purpose deposits 5,711 1,909 -66.57% 1,516 -20.59% 1,577 4.02%
TOTAL 1,431,978 1,370,215 -4.31% 1,526,411 11.40% 1,663,861 9.00%
Structure of deposits by private individuals

PI loan portfolio
Private lending
2010 was the year in which the market started to recover from the financial crisis. The loan growth of
238 per cent compared with 2009 indicates a stronger demand for loans and intensified lending activities.
We issued new loans worth slightly above KM 292 million. The loan portfolio was dominated
by non-purpose loans with a 78.14 per cent share, followed by mortgage loans, lombard loans and
purpose loans with shares of 10.52 per cent, 6.30 per cent and 4.19 per cent, respectively. The only
loan product that declined in comparison with the previous year, by 0.81%, was the consumer loan. This
decline was caused by the launch of new alternative products, above all, the MasterCard Shopping
Card. The best selling products were non-purpose loans, with KM 69.9 million coming from the sale
of “XXL Non-Purpose Loans without Guarantors” and KM 76.71 million from “Consolidation Loans”.
In 2010, loans grew on quarterly basis, with the highest sale, or KM 83 million, reached in the fourth
quarter of the year. Loans grew in 2010 thanks not least to the continuous CRM activities and two marketing
campaigns which increased sales by KM 68 million.
(000 KM) 2007 2008 growth in % 2009 growth in % 2010 growth in %
Short-term loans 19,161 17,106 -10.72% 9,111 -46.74% 8,262 -9.32%
Long-term loans 1,155,747 1,385,920 19.92% 1,150,351 -17.00% 1,055,916 -8.21%
Card products 57,060 73,711 29.18% 90,683 23.03% 90,442 -0.27%
TOTAL 1,231,968 1,476,737 19.87% 1,250,145 -15.34% 1,154,620 -7.64%
Structure of the PI loan portfolio
Retail Banking
www.raiffeisenbank.ba 51

Retail Banking
52
www.raiffeisenbank.ba
Neutral Business and Private Customer Base
Fast money transfer and receipt via the Western Union system played a key role in the neutral business
segment.
Compared to the year before, the number of Western Union transactions grew by 18 per cent.
The structure of transactions remained almost unchanged. We are still an inbound country, with inbound
transactions representing 90 per cent of total transactions. Outbound transactions accounted for
9 per cent and domestic transactions for the remaining 1 per cent.
Development of the neutral business segment was a matter of significant emphasis again in 2010. We
were particularly successful in growing volumes, which resulted in an increase in income from foreign
payments. The number of customers holding an account set was also on the rise. The increase in the
number of account sets is the result of our constant improvements of sales activities and fine-tuning of
the account set concept, by implementing new sale channels and models, as well as expanding the Raiffstyle
CLUB concept.
In the last two years, we worked on updating our base of active customers, that is, customers using at
least one product with our bank. As a result of these activities, our customer base declined by 12 per
cent compared with the prior year.
Development of the PI customer base 2006-2010
.

Card Business
The business year 2010 was yet another successful year in the card issuing area.
A significant contributory factor to the number of debit cards issued was an action for acquisition of public
sector entities and corporate entities for payment of staff salaries into accounts linked to debit cards.
The increase in the number of credit cards issued was driven by the new product MasterCard Shopping
Card. With its many features and benefits, the card proved to be an attractive product as it enables customers
to pay in instalments without any fees and interest and, in addition, get extended warranty for
the goods purchased with the card. The card is also available as part of the Trendy Plus Account Set
that offers a whole range of attractive products and services, both banking and non-banking, geared
to the needs of various customer types.
Distribution Channels and Service Quality
After four years of continuous expansion of the business network, 2009 and 2010 were years of consolidation
in which the bank achieved an optimum reach of its network.
As of 31.12.2010 our branch network comprised:
• 92 branches selling products and services to customers, and
• 6 main branches acting as regional hubs of the branch network. Main branches were established
in the country’s large administration and political centres to provide the branch network with
administrative and professional support.
Over the course of the year, the bank also worked on expanding its network of POS, ATMs, info terminals
and alternative sales channels (sales agents network – merchants, car dealers).
Development of the branch network from 2006 to 2010
Retail Banking
www.raiffeisenbank.ba 53

Retail Banking
54
Geographical distribution of business outlets as of 31.12.2010
Development of the branch network, split by outlet types
www.raiffeisenbank.ba

Retail Quality Management
The focus of Retail Quality Management in 2010 was on improving the data and service quality. Highquality
data and services are not only basic prerequisites for customer satisfaction and loyalty, but also
strong drivers of our business results.
Data Quality
Since customer relationship management will become one of our main means of customer communication
in the future, all the required measures must be taken to improve the customer database, reduce
costs and make full use of the existing customer base. Improving the customer base will enable us to
identify our customers’ needs and gear our offer to their individual profiles, which will eventually have
a positive effect on our business operations.
To ensure that our data on private customers are complete and accurate, we launched two projects
aimed at “cleaning” our existing customer data and establishing new controls in the Bank's applications,
with the final goal of preventing the entry of wrong data. With that in mind, specific data-cleaning software
was acquired in 2010, to be used for regular monitoring of data quality.
Service Quality
The quality index – that is calculated in all branches on a quarterly basis and includes parameters such
as mystery shopping evaluation, waiting time, working environment, knowledge tests and migration level
– helps us detecting weaknesses in customer services and finding a way to eliminate or reduce them to
an unavoidable minimum.
Increased attention was given in 2010 to strengthening awareness among the staff members of the significance
of service quality for overall business operations. In addition, measures were taken to improve
the visual identity of branches, as well as activities for implementation of defined service quality
standards and improvement of quality in general.
Retail Banking
www.raiffeisenbank.ba 55

Investment Banking
56
Investment Banking
www.raiffeisenbank.ba
The capital markets of Bosnia and Herzegovina were again shaped by the crisis in 2010, despite first
improvement signals. The downward trends of prices and turnover were somewhat more moderate
than in the previous two years, when the financial crisis was at its peak.
A total turnover volume of KM 286.74 mn (EUR 146.61 mn) was achieved on the local capital markets,
with the Sarajevo Stock Exchange accounting for 37.85 per cent of the total turnover, which is less than
the Banjaluka Stock Exchange for the first time. Compared with the previous year, the total turnover on the
local capital markets fell by 27.89 percent, which is a considerably lower drop than in the year before.
Total turnover on SASE and BLSE
It is important to note that the debt market was strongly activated in 2010 and that nearly half of the regular
turnover achieved on the local capital markets came from the trading of bonds of the Federation of
Bosnia and Herzegovina and of the Republika Srpska. The entity bonds attracted many local and foreign
investors due to their extremely high yield, ranging from 15 to 20 per cent annually until maturity.
The blue chip indices of both stock exchanges also fell at a slower pace than in the previous two years,
with the SASX-10 falling by 10.4 per cent and the BIRS by just 3.6 per cent.

Indices 2010: SASX - 10, SASX - 30, BIRS
Indices 2010: BIFX, FIRS
Investment Banking
Despite the continuing adverse trends in the local capital markets, Investment Banking managed to
achieve excellent results by offering various products and services.
In the year under review, Investment Banking introduced new products designed to help optimising the
Bank’s assets in both liquidity and income respects. The new products belong to the securities financing
area and enable the Bank not only to maximise the usability of its existing portfolio but also to use
its securities for other purposes. The first product, securities lending, enables the Bank to generate additional
income on the securities in its existing portfolio, while the second product, repos, allows it to
arrange additional liquidity, if required, at more favourable conditions.
www.raiffeisenbank.ba 57

Investment Banking
58
www.raiffeisenbank.ba
After the introduction of debt instruments, Proprietary Investment Banking continued with a range of successful
investments in these financial instruments on both local and foreign markets and achieved respectable
yields, thus making a strong contribution to the Bank’s overall profit for 2010.
Customer Investment Banking also achieved solid financial results in 2010 despite the difficult market
environment, by maintaining successful business relations with existing customers on the one hand,
and concluding numerous new contracts for both local and global custody on the other, eventually increasing
the volume of assets under management.
The Bank was honoured by the renowned magazine “Global Custodian” with the Award for Excellence
for 2010 as a bank recommended by its customers. Again toward the end of 2010, the “Global Custodian”
carried out research among our custody customers for the year 2010. Our prime status was confirmed,
as we were again TOP RATED for custody services.
In the course of 2010, Custody worked actively on opening custody accounts in the markets of Slovenia,
Macedonia and Montenegro, and made the necessary preparations. The Slovenian and Macedonian
markets have already been activated, while the Montenegrin market will be available to our
customers in the first half of 2011.
Investment Banking also made notable progress in the area of lobbying on behalf of customers at the
legislative bodies in the Federation of B&H and Republika Srpska. This should result in the introduction
of true DVP to the market of the Federation of B&H and in the adoption of a new Rulebook on Central
Registry Dealings in the Republika Srpska, both of which will make custody operations easier.
In the funds administration area, the Bank focused its activities in 2010 on signing new contracts with
existing customers and transferring customer assets worth EUR 70 mn, including securities, to special
custody accounts.
The Depository Business and Funds Administration Group successfully coped with the new challenges
in the depository business area. More precisely, after the Bosinvest doo Sarajevo fund management company
had its license revoked by the FB&H Securities Commission, the Bank was tasked with provisionally
administrating the Bosfin dd Sarajevo closed-ended investment fund. This included preventing any
further access to the fund’s entire assets, until such time when the management tasks are transferred
to another management fund.
The Macroeconomic Analyses & Product Development continued to further develop and expand the
number of publications and specialised analyses for the needs of our investment banking customers,
but also for other customers and the members of the public. In 2010, the Bank started to publish quarterly
macroeconomic forecasts for B&H through the media, which will be useful in the planning and decision-making
process not only for our customers, but also for other financial markets participants and
the country’s overall economy. The Department also started to publish other publications on the Bank’s
website, in particular, publications dealing with key developments and trends in the political and macroeconomic
environments, institutional and legal changes crucial for the economy, the capital markets and
the privatisation processes, as well as future developments in the local capital markets and the stock
exchange business of top companies. The Bank has completed all the preparations needed to start
publishing these publications through Bloomberg and Reuters at the beginning of 2011, which will
make Raiffeisen Bank the first bank in B&H to publish its analyses through these two leading media in
the global investment world.
In order to improve the quality and efficiency of its professional intermediary services, Investment Banking
kicked of the merger of Raiffeisen BROKERS d.o.o. into Raiffeisen BANK d.d. Bosna i Hercegovina
in 2010, which is to be completed early in May 2011. With this merger, Raiffeisen BANK brings under
one roof all the brokerage services in domestic and foreign capital markets, and customers will benefit
from being able to access our bundled and optimised product and service competence from the Investment
Banking Department as a single source.

Treasury
and Financial Markets
Treasury – Sales and Trading
Treasury and Financial Markets
Again in 2010, the foreign exchange business area was marked by strong daily oscillations in the value
of the global currencies; albeit to a lower extent than in 2009. In the interbank FX trading area in 2010,
Treasury placed a special focus on efficient FX risk management, while at the same time keeping an eye
on profit-orientation in the given market conditions. Our staff’s engagement was rewarded again this
year, as our FX trading profit came to KM 1.66 million. This demonstrates that the forecasts released
by Treasury during the course of the year have actually materialised to a great extent. We based our
decisions regarding FX transactions on experience from the turbulent year 2009, trying to keep FX position
for each currency as open as needed.
Despite the financial crisis, the number of new Customer Desk users rose throughout the year. FX trading
was the dominant service offered to customers via the Customer Desk. FX trading was conducted
with careful planning of open positions and adherence to internal limits for the overall FX position. At
the same time, the focus was on preserving our Customer Desk users' trust by offering exchange rates
that are not only realistic but also reflect the current situation in the global financial markets.
Total FX P&L Treas. 2010 cumulative
In the money markets area, we were successful in placing funds with other banks, by fully utilising the
approved limits and making sure that the liquidity principle was always preserved. Our objectives were
to place funds with our partner banks that offer competitive rates and to place them with tenors that
come with favourable interest rates. The funds placed with other banks yielded interest of KM 2 million
in 2010. The volume of placements in 2010 dropped gradually throughout the year, as a great deal
of money had to be used for settlement of the Bank’s liabilities. After a long period of stagnation, the
interest rates in global markets started rising again moderately.
Thanks to its measures, the FED managed to keep the value of the USD base interest rate at a historic
low of 0.25 per cent, whereas the European Central Bank ended the year keeping the EUR reference
rate at an all time low of 1 per cent.
www.raiffeisenbank.ba 59

Treasury and Financial Markets
60
Average daily balances at other banks 2010 (in ths EUR)
www.raiffeisenbank.ba
Particularly noteworthy among the numerous activities taken in 2010 were those primarily aimed at
keeping the open FX position reconciled and within the legal grids (30 per cent of core capital). In the
period between 01.01.2010 and 31.12.2010 the FX position was kept long and showed no major oscillations.
During this period, FX position was maintained within the legal limits prescribed by the FBA
and RZB's internal limits.
FX Position 04 Jan 2010 – 31 Dec 2010
At mid-year, we intensified cash purchases from local banks, in order to remain a leader in this business
area.

Liquidity ratios
Funding and Financial Institutions
Treasury and Financial Markets
Funding and Financial Institutions focused its funding activities in 2010 on using available credit lines,
above all credit lines with an energy efficiency component. Apart from that, we improved the maturity
structure of existing credit lines, by early repayment of expensive credit facilities with a short remaining
maturity.
We further improved the structure of our creditors by signing a subsidiary financing agreement with the
Foundation for Sustainable Development of the Federation of Bosnia and Herzegovina, involving World
Bank funds as part of the project for improvement of small and medium enterprises’ access to funding.
A similar arrangement for the same funding source will be signed in early 2011 with the Investment and
Development Bank of the Republika Srpska, to support our customers’ business development throughout
Bosnia and Herzegovina.
At year-end 2010, our funding portfolio was structured as follows: our biggest creditors continue to be
development banks and institutions with a share of 44.45 per cent, followed by supranational financial
institutions with 36.09 per cent and our mother bank and group member with 19.46 per cent.
In the correspondent banking area in 2010, we expanded our network of banks that are ready to directly
confirm, at acceptable pricing, the payment security instruments we issue to our customers. During
the past year, we frequently acted as a confirming bank in the trade finance business.
As a result of our long-standing cooperation, good business relations and intensive negotiations, we
managed to obtain favourable payment conditions and new business terms from the key clearing banks.
ALM (Asset and Liability Management)
Despite the ongoing effects of the global liquidity crisis that unfolded toward the end of 2008, Raiffeisen
Bank successfully managed its assets and liabilities. Liquidity was at a satisfactory level, considering the
business environment and the risks inherent in the banking business. The liquidity management process
was continued through regular monitoring on a daily, weekly and monthly basis, as well as regular simulations
of future liquidity developments.
The liquidity ratio average was satisfactory throughout the year, at 30.29 per cent.
www.raiffeisenbank.ba 61

Treasury and Financial Markets
62
www.raiffeisenbank.ba
The chart below, showing the development of the assets and liabilities maturity match during 2010, demonstrates
that there was an excess above the legal limit, on average for all three time buckets, namely:
Maturity match of assets and liabilities in 2010
In July 2010, the Central Bank passed a decision by which the fees payable to banks is calculated on
the funds held in reserve with the Central Bank of Bosnia and Herzegovina in the respective billing period,
in the following way:
• for the legal reserve, at the average rate achieved by the Central Bank in the market and in the
same period for overnight deposits,
• for the excess reserve, at the average rate achieved by the Central Bank in the market and in
the same period for deposits placed for a period of up to one month.
Development of the minimum legal reserve and the excess reserve in 2010 in KM ths
Below is an overview of assets and liabilities structure as of 31.12.2010.

The structure of assets as of 31.12.2010
The structure of liabilities as of 31.12.2010
Treasury and Financial Markets
www.raiffeisenbank.ba 63

Addresses and Contacts
66
Head Office and Branches
www.raiffeisenbank.ba
Head Office Sarajevo
Zmaja od Bosne bb
Raiffeisen direkt info: + 387 33 75 50 10
E–mail: info.rbbh@rbb-sarajevo.raiffeisen.at
Internet: www.raiffeisenbank.ba
Branches
MB Sarajevo
Zmaja od Bosne bb
71 000 Sarajevo
Branch Centar
Valtera Perića 20
71 000 Sarajevo
Branch Novo Sarajevo
Kolodvorska 12
71 000 Sarajevo
Branch Ilidža
Rustempašina bb
71 210 Ilidža
Branch Pale
Milana Simovića bb
71 420 Pale
Branch Goražde
Titova bb
73 000 Goražde
MB Banja Luka and
Branch Banja Luka
Vase Pelagića 2
78 000 Banja Luka
Branch Banja Luka 2
Vojvode S. Stepanovića bb
78 000 Banja Luka
Branch Prijedor
Vožda Karađorđa 14
79 101 Prijedor
Branch Gradiška
Vidovdanska bb
78 400 Gradiška
Branch Doboj
Nemanjina bb
74 000 Doboj
MB Zenica and
Branch Zenica
Maršala Tita bb
72 000 Zenica
Branch Žepče
Stjepana Tomaševića bb
72 230 Žepče
Branch Kakanj
Zgošćanska P+4+M
72 240 Kakanj
Branch Vitez
Poslovni centar PC 96-2
72 250 Vitez
Branch Visoko
Alije Izetbegovića 1
71 300 Visoko
Branch Tešanj
Kralja Tvrtka bb
74 260 Tešanj
Branch Travnik
Konatur bb
72 270 Travnik
MB Tuzla and Branch Tuzla
15 Maja bb
75 000 Tuzla
Branch Tuzla 2
Univerzitetska 16
75 000 Tuzla
Branch Orašje
III ulica 33
76 270 Orašje
Branch Bijeljina
Karađorđeva bb
76 300 Bijeljina
Branch Brčko
Bulevar mira bb
76 100 Brčko
MB Bihać and
Branch Bihać
Pape Ivana Pavla II 4
77 000 Bihać
Branch Cazin
Generala Izeta Nanića bb
77 220 Cazin
Branch Velika Kladuša
Izeta Nanića 1
77 230 Velika Kladuša
Branch Sanski Most
Muse Ćazima Ćatića 24
79 260 Sanski Most
Branch Bosanska Krupa
Trg Alije Izetbegovića bb
77 240 Bosanska Krupa
MB Mostar and
Branch Mostar
Kneza Domagoja bb
88 000 Mostar
Branch Konjic
Suhi do bb
88 400 Konjic
Branch Čitluk
Kralja Tomislava 120
88 260 Čitluk
Branch Široki Brijeg
Zaobilaznica bb
88 220 Široki Brijeg
Branch Trebinje
Vuka Mičunovića bb
89 101 Trebinje
Branch Livno
Trg kralja Tomislava bb
80 101 Livno

Addresses and Contacts
Raiffeisen Bank International AG
Austria
Am Stadtpark 9
1030 Vienna
Phone: +43-1-71707 0
Fax: +43-1-71707 1715
www.rbinternational.com
ir@rbinternational.com
rbi-pr@rbinternational.com
Banking Network
Albania
Raiffeisen Bank Sh.a.
European Trade Center
Bulevardi “Bajram Curri”
Tirana
Phone: +355-4-238 1000
Fax: +355-4-2275 599
SWIFT/BIC: SGSBALTX
www.raiffeisen.al
Belarus
Priorbank JSC
31A V. Khoruzhey
220002 Minsk
Phone: +375-17-289 9090
Fax: +375-17-289 9191
SWIFT/BIC: PJCBBY2X
www.priorbank.by
Bosnia and Herzegovina
Raiffeisen BANK d.d. Bosna i Hercegovina
Zmaja od Bosne bb
71000 Sarajevo
Phone: +387-33-287 101
Fax: +387-33-213 851
SWIFT/BIC: RZBABA2S
www.raiffeisenbank.ba
Bulgaria
Raiffeisenbank (Bulgaria) EAD
18/20 Ulica N. Gogol
1504 Sofia
Phone: +359-2-9198 5101
Fax: +359-2-943 4528
SWIFT/BIC: RZBBBGSF
www.rbb.bg
Kosovo
Raiffeisen Bank Kosovo J.S.C.
Rruga UÇK, No. 51
10000 Pristina
Phone: +381-38-222 222
Fax: +381-38-2030 1130
SWIFT/BIC: RBKORS22
www.raiffeisen-kosovo.com
Croatia
Raiffeisenbank Austria d.d.
Petrinjska 59
10000 Zagreb
Phone: +385-1-456 6466
Fax: +385-1-481 1624
SWIFT/BIC: RZBHHR2X
www.rba.hr
Poland
Raiffeisen Bank Polska S.A.
Ul. Piękna 20
00-549 Warsaw
Phone: +48-22-585 2001
Fax: +48-22-585 2585
SWIFT/BIC: RCBWPLPW
www.raiffeisen.pl
Romania
Raiffeisen Bank S.A.
Piaţa Charles de Gaulle 15
011857 Bucharest 1
Phone: +40-21-306 1000
Fax: +40-21-230 0700
SWIFT/BIC: RZBRROBU
www.raiffeisen.ro
Addresses and Contacts
www.raiffeisenbank.ba 67

Addresses and Contacts
68
www.raiffeisenbank.ba
Russia
ZAO Raiffeisenbank
Smolenskaya-Sennaya sq., 28
119002 Moscow
Phone: +7-495-721 9900
Fax: +7-495-721 9901
SWIFT/BIC: RZBMRUMM
www.raiffeisen.ru
Serbia
Raiffeisen banka a.d.
Bulevar Zorana \in|i}a 64a
11070 Novi Beograd
Phone: +381-11-320 2100
Fax: +381-11-220 7080
SWIFT/BIC: RZBSRSBG
www.raiffeisenbank.rs
Slovakia
Tatra banka, a.s.
Hod`ovo námestie 3
81106 Bratislava 1
Phone: +421-2-5919 1111
Fax: +421-2-5919 1110
SWIFT/BIC: TATRSKBX
www.tatrabanka.sk
Slovenia
Raiffeisen Banka d.d.
Zagreb{ka cesta 76
2000 Maribor
Phone: +386-2-229 3100
Fax: +386-2-303 442
SWIFT/BIC: KREKSI22
www.raiffeisen.si
Czech Republic
Raiffeisenbank a.s.
Hvezdova 1716/2b
14078 Prague 4
Phone: + 420-221-141 111
Fax: +420-221-142 111
SWIFT/BIC: RZBCCZPP
www.rb.cz
Ukraine
Raiffeisen Bank Aval JSC
Vul Leskova, 9
01011 Kiev
Phone: +38-044-490 8888
Fax: +38-044-285 3231
SWIFT/BIC: AVALUAUK
www.aval.ua
Hungary
Raiffeisen Bank Zrt.
Akadémia utca 6
1054 Budapest
Phone: +36-1-484 4400
Fax: +36-1-484 4444
SWIFT/BIC: UBRTHUHB
www.raiffeisen.hu
Leasing companies
Austria
Raiffeisen-Leasing International GmbH
Am Stadtpark 3
1030 Vienna
Phone: +43-1-71707 2966
Fax: +43-1-71707 2059
www.rli.co.at
Albania
Raiffeisen Leasing Sh.a.
Rruga Kavajës 44
Tirana
Phone: +355-4-2274 920
Fax: +355-4-2232 524
www.raiffeisen-leasing.al
Belarus
JLLC Raiffeisen Leasing
31A V. Khoruzhey
220002 Minsk
Phone: +375-17-289 9394
Fax: +375-17-289 9394
www.rl.by
Bosnia and Herzegovina
Raiffeisen Leasing d.o.o. Sarajevo
Zmaja od Bosne bb, Building B
71000 Sarajevo
Phone: +387-33-254 354
Fax: +387-33-212 273
www.rlbh.ba
Bulgaria
Raiffeisen Leasing Bulgaria OOD
Business Park Sofia
Building 7B, 4th floor
1766 Sofia
Phone: +359-2-491 9191
Fax: +359-2-974 2057
www.rlbg.bg

Kazakhstan
Raiffeisen Leasing Kazakhstan LLP
146, Shevchenko St., Flat 1
050008 Almaty
Phone: +7-727-3785 430
Fax: +7-727-3785 447
www.rlkz.kz
Kosovo
Raiffeisen Leasing Kosovo
Str. Agim Ramadani, No. 15
10000 Pristina
Phone: +381-38-2222 22
Fax: +381-38-2030 3011
Croatia
Raiffeisen Leasing d.o.o.
Radni~ka cesta 43
10000 Zagreb
Phone: +385-1-6595 000
Fax: +385-1-6595 050
www.rl-hr.hr
Moldova
ICS Raiffeisen Leasing SRL
51 Alexandru cel Bun
2012 Chişinău
Phone: +373-22-2793 13
Fax: +373-22-2283 81
www.raiffeisen-leasing.md
Poland
Raiffeisen-Leasing Polska S.A.
St. Prosta 51
00-838 Warsaw
Phone: +48-22-3263 600
Fax: +48-22-3263 601
www.rl.com.pl
Romania
Raiffeisen Leasing IFN S.A.
Nusco Tower
Sos Pipera nr 42, Etaj 1A
020112 Sector 2, Bucharest
Phone: +40-21-306 9696
Fax: +40-37-287 9988
www.raiffeisen-leasing.ro
Russia
OOO Raiffeisen Leasing
Stanislavskogo St. 21/1
109004 Moscow
Phone: +7-495-721 9980
Fax: +7-495-721 9572
www.rlru.ru
Serbia
Raiffeisen Leasing d.o.o.
Milutina Milankovi}a 134a
11070 Novi Beograd
Phone: +381-11-201 7700
Fax: +381-11-713 0081
www.raiffeisen-leasing.rs
Slovakia
Tatra Leasing s.r.o.
Hod`ovo námestie 3
81106 Bratislava 1
Phone: +421-2-5919 3168
Fax: +421-2-5919 3048
www.tatraleasing.sk
Slovenia
Raiffeisen Leasing d.o.o.
Tivolska 30 (Center Tivoli)
1000 Ljubljana
Phone: +386-1-241 6250
Fax: +386-1-241 6268
www.rl-sl.com
Czech Republic
Raiffeisen-Leasing s.r.o.
Hvezdova 1716/2b
14078 Prague 4
Phone: +420-221-5116 11
Fax: +420-221-5116 66
www.rl.cz
Ukraine
LLC Raiffeisen Leasing Aval
Moskovskiy Prospect, 9
Corp. 5 Office 101
04073 Kiev
Phone: +38-044-590 2490
Fax: + 38-044-200 0408
www.rla.com.ua
Addresses and Contacts
www.raiffeisenbank.ba 69

Addresses and Contacts
70
www.raiffeisenbank.ba
Hungary
Raiffeisen Lízing Zrt.
Hungaria krt. 40-44
1087 Budapest
Phone: +36-1-477 8707
Fax: +36-1-477 8702
www.raiffeisenlizing.hu
Real estate leasing companies
Czech Republic
Raiffeisen Leasing Real Estate s.r.o.
Hvezdova 1716/2b
14078 Prague 4
Phone: +420-2-215116 10
Fax: +420-2-215116 41
www.realestateleasing.cz
Branches and representative
offices – Europe
Germany
RBI Representative Office Frankfurt
Mainzer Landstrasse 51
60329 Frankfurt am Main
Phone: +49-69-2992 1918
Fax: +49-69-2992 1922
France
RBI Representative Office Paris
9-11, Avenue Franklin D. Roosevelt
75008 Paris
Phone: +33-1-4561 2700
Fax: +33-1-4561 1606
UK
RBI London Branch
10, King William Street
London EC4N 7TW
Phone: +44-20-7929 2288
Fax: +44-20-7933 8099
Italy
RBI Representative Office Milan
Via Andrea Costa 2
20131 Milan
Phone: +39-02-2804 0646
Fax: +39-02-2804 0658
Russia
RBI Representative Office Moscow
Smolenskaya-Sennaya sq., 28
119002 Moscow
Phone: +7-495-721 9905
Fax: +7-495-721 9907
Sweden
RBI Representative Office Nordic Countries
Drottninggatan 89
P.O. Box 3294
10365 Stockholm
Phone: +46-8-440 5086
Fax: +46-8-440 5089
Spain
RBI Representative Office Madrid
Príncipe de Vergara 11, 4°C
28001 Madrid
Phone: +34-91-431 6536
Fax: +34-91-431 8772
Branches and representative
offices – Asia and America
China
RBI Beijing Branch
Beijing International Club 200 2nd floor
Jianguomenwai Dajie 21
100020 Beijing
Phone: +86-10-653 23388
Fax: +86-10-653 25926
RBI Representative Office Hong Kong
Unit 2106-08, 21st Floor,
Tower One, Lippo Centre
89 Queensway, Hong Kong
Phone: +85-2-2730 2112
Fax: +85-2-2730 6028
RBI Xiamen Branch
Unit 01-02, 32/F, Zhongmin Building
No. 72 Hubin North Road
Xiamen
Fujian Province
361012 China
Phone: +86-592-2623 988
Fax: +86-592-2623 998

India
RBI Representative Office Mumbai
803, Peninsula Heights
C.D. Barfiwala Road, Andhere (W)
400 058 Mumbai
Phone: +91-22-2623 0657
Fax: +91-22-2624 4529
Korea
RBI Representative Office Korea
Leema Building, 8th floor
146-1, Soosong-dong
Chongro-ku
Seoul 110-755
Phone: +82-2-398 5840
Fax: +82-2-398 5807
Singapore
RBI Singapore Branch
One Raffles Quay
#38-01 North Tower
Singapore 048583
Phone: +65-6305 6000
Fax: +65-6305 6001
USA
RB International Finance (USA) LLC
1133, Avenue of the Americas, 16th Floor
10036 New York
Phone: +01-212-845 4100
Fax: +01-212-944 2093
http://usa.rbinternational.com
RBI Representative Office New York
1133, Avenue of the Americas, 16th Floor
10036 New York
Phone: +01-212-593 7593
Fax: +01-212-593 9870
Vietnam
RBI Representative Office Ho Chi Minh City
6 Phung Khac Khoan Street,
Room G6
District 1, Ho Chi Minh City
Phone: +84-8-3829 7934
Fax: +84-8-3822 1318
Raiffeisen Zentralbank AG
Austria
Am Stadtpark 9
1030 Vienna
Phone: +43-1-26216 0
Fax: +43-1-26216 1715
www.rzb.at
Selected Raiffeisen
specialist companies
F.J. Elsner Trading Gesellschaft m.b.H.
Am Heumarkt 10
1030 Vienna
Phone: +43-1-79 736 0
Fax: +43-1-79 736 9142
www.elsner.at
Kathrein & Co. Privatgeschäftsbank
Aktiengesellschaft
Wipplingerstraße 25
1010 Vienna
Phone: +43-1-53 451 269
Fax: +43-1-53 451 233
www.kathrein.at
Raiffeisen-Leasing International
Gesellschaft m.b.H.
Am Stadtpark 3
1030 Vienna
Phone: +43-1-71707 2966
Fax: +43-1-71707 76 2966
www.rli.co.at
Addresses and Contacts
www.raiffeisenbank.ba 71

Financial Statements
72
Responsibility for the Financial Statements
Pursuant to the Law on Accounting and Audit of Federation of Bosnia and Herzegovina (Official Gazette No. 83/09), the
Management Board is responsible for ensuring that financial statements are prepared for each financial year in accordance
with International Financial Reporting Standards (IFRS) as modified by the regulatory requirements of the Banking
Agency of Federation of Bosnia and Herzegovina which give a true and fair view of the state of affairs and results of the
Bank for that period. IFRS are published by the International Accounting Standards Board (IASB).
After making enquiries, the Management Board has a reasonable expectation that the Bank has adequate resources to
continue in operational existence for the foreseeable future. For this reason, the Management Board continues to adopt
the going concern basis in preparing the financial statements.
In preparing those financial statements, the responsibilities of the Management Board include ensuring that:
• suitable accounting policies are selected and then applied consistently;
• judgements and estimates are reasonable and prudent;
• applicable accounting standards are followed, subject to any material departures disclosed and explained in the
financial statements; and
• the financial statements are prepared on the going concern basis unless it is inappropriate to presume that the Bank
will continue in business.
The Management Board is responsible for keeping proper accounting records, which disclose with reasonable accuracy
at any time the financial position of the Bank and must also ensure that the financial statements comply with the Accounting
and Auditing Law of Federation of Bosnia and Herzegovina. The Management Board is also responsible for safeguarding
the assets of the Bank and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
Signed on behalf of the Management Board
Michael Müller, President
Raiffeisen BANK d.d. Bosna i Hercegovina
Zmaja od Bosne bb
71000 Sarajevo
Bosnia and Herzegovina
31 January 2011
www.raiffeisenbank.ba

INDEPENDENT AUDITORS’ REPORT
To the shareholders of Raiffeisen BANK d.d. Bosna i Hercegovina
Financial Statements
Independent auditors’ report
We have audited the accompanying unconsolidated financial statements of Raiffeisen BANK d.d. Bosna i Hercegovina (the
“Bank”), set out on pages 4 to 55, which comprise of the unconsolidated balance sheet as at 31 December 2010, and
the unconsolidated income statement, statement of comprehensive income, statement of changes in equity and cash flow
statement for the year then ended, and a summary of significant accounting policies and other explanatory notes.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with the
International Financial Reporting standards and for such internal control as Management determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the Bank’s financial position as of 31 December
2010, and of its unconsolidated financial performance and its cash flows for the year then ended in accordance with International
Financial Reporting Standards as modified by the regulatory requirements of the Banking Agency of Federation
of Bosnia and Herzegovina.
Emphases of matter
Without qualifying our opinion, we draw attention to the Note 3 to the unconsolidated financial statements, which describes
that the financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs)
as modified by the regulatory requirements of the Banking Agency of Federation of Bosnia and Herzegovina. These rules
require banks to calculate the allowance for impairment of financial assets based on matrix system, which is namely
based on number of days overdue. This is not in accordance with International Accounting Standard 39 ’Financial Instruments:
Recognition and Measurement’. If the Bank had not recorded this additional allowance in accordance with the
regulatory requirements of the Banking Agency of Federation of Bosnia and Herzegovina, the allowance of loan losses
as of 31 December 2010 would have decreased by KM 89,592 thousand, the retained earnings as of 1 January 2010
would have increased by KM 81,384 thousand and the profit before taxation for the year ended 31 December 2010 would
have increased by KM 8,208 thousand, respectively.
Furthermore, without qualifying our opinion, we draw attention to the fact that consolidated financial statements have not
yet been published by the Bank at the date of this report. Note 3 to the unconsolidated financial statements explain the
method of accounting and other disclosures related to unconsolidated subsidiaries respectively.
Deloitte d.o.o.
Sead Bahtanovi}, director Sa bi na Sof ti}, authorized auditor
Sarajevo, Bosnia and Herzegovina
31 January 2011
www.raiffeisenbank.ba 73

Financial Statements
74
Unconsolidated Statement of Income
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
www.raiffeisenbank.ba
Notes 2010 2009
Interest income 6 210,296 241,116
Interest expense 7 (86,540) (123,414)
Net interest income 123,756 117,702
Fee and commission income 8 61,099 55,107
Fee and commission expense 9 (8,090) (6,907)
Net fee and commission income 53,009 48,200
Net financial income 10 16,256 9,316
Other operating income 3,066 2,751
Operating income 196,087 177,969
Administrative expenses 12 (120,965) (114,969)
Depreciation of tangible fixed assets 26 (7,626) (6,798)
Amortization of intangible fixed assets 26 (1,609) (1,151)
Operating Expense (130,200) (122,918)
PROFIT BEFORE IMPAIRMENT LOSSES,
PROVISIONS AND INCOME TAX
65,887 55,051
Impairment losses and provisions 13 (69,497) (53,603)
Collected write-offs 11 11,487 8,132
PROFIT BEFORE INCOME TAX 7,877 9,580
Income tax 14 (2,005) (1,216)
NET PROFIT FOR THE YEAR 5,872 8,364
Earnings per share (KM) 41 6.18 8.81
The accompanying notes form an integral part of these financial statements.

Unconsolidated Statement of comprehensive income
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
The accompanying notes form an integral part of these financial statements.
Financial Statements
Notes 2010 2009
Profit for the year
Available-for-sale financial assets
5,872 8,364
Net (loss) / gain arising on revaluation of available-for-sale
financial assets during the year
19 (317) 1,032
Total comprehensive income for the year 5,555 9,396
www.raiffeisenbank.ba 75

Financial Statements
76
Unconsolidated Balance sheet
as at 31 December 2010
(all amounts are expressed in thousands of KM)
www.raiffeisenbank.ba
Notes
31 December
2010
Signed on behalf of Raiffeisen BANK d.d. Bosna i Hercegovina on 31 January 2011:
President of the Management Board Director of the Finance Department
Michael Müller Marko Jurjevi}
The accompanying notes form an integral part of these financial statements.
31 December
2009
ASSETS
Cash and cash equivalents 15 434,964 432,260
Obligatory reserve at Central Bank 16 305,865 343,007
Placements with other banks 17 250,282 706,226
Loans and receivables 18 2,243,190 2,315,721
Securities available for sale 19 2,241 2,558
Securities at fair value through profit and loss 20 1,664 1,852
Investments in subsidiaries 21 2,288 2,276
Investments in associates 22 8,173 3,380
Bonds at fair value through profit and loss 23 163,120 118,781
Bonds held to maturity 24 137,408 104,965
Deferred tax assets 14 469 162
Other assets 25 16,971 24,571
Property, equipment and intangible assets 26 155,598 141,203
TOTAL ASSETS
LIABILITIES
3,722,233 4,196,962
Due to banks 27 588,150 958,807
Due to customers 28 2,622,705 2,723,531
Provisions 33 24,825 23,391
Other liabilities 29 32,613 27,564
Subordinated debt 30 82,016 96,663
TOTAL LIABILITIES
SHAREHOLDERS’ EQUITY
3,350,309 3,829,956
Share capital 241,861 241,861
Reserves and retained earnings 130,063 125,145
TOTAL SHAREHOLDER’S EQUITY 371,924 367,006
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 3,722,233 4,196,962
FINANCIAL COMMITMENTS AND CONTINGENCIES 32 898,766 866,510

Unconsolidated Statements of cash flow
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Operating Activities
The accompanying notes form an integral part of these financial statements.
Financial Statements
2010 2009
Net Income
Adjustments to reconcile net income to net cash provided by operating
activities:
5,872 8,364
Depreciation and amortization 9,235 7,949
Impairment losses and provisions 69,497 53,603
Net (income) / loss from sale of securities at fair value through profit and loss (23) 21
Loss from sale of property and equipment 552 159
Fair value adjustment on securities at FVTPL 407 601
Fair value adjustment of bonds 1,614 (572)
Dividends from investments (79) (54)
Adjustments from investing and financial activities related to tax (637) -
Paid tax liabilities
Changes in operating assets and liabilities:
- (11,587)
Net decrease in due from Central Bank 37,142 157,689
Net decrease / (increase) in placements with other banks,
before impairment losses
455,901 (78,589)
Net decrease in loans and receivables, before impairment losses 6,750 450,080
Net decrease in other assets, before impairment losses 6,209 931
(Increase) / decrease in deferred tax asset (307) 43
Net decrease in due to banks (132,752) (47,140)
Net (decrease) / increase in demand and term deposits (100,826) 240,254
Net increase / (decrease) in other liabilities 5,049 (9,631)
NET CASH PROVIDED FROM OPERATING ACTIVITIES
Investing Activities
363,604 772,121
Proceeds from sale of securities at fair value through profit and loss 33 446
Proceeds from sale property and equipment 33 6,224
Proceeds from sale of bonds at fair value through profit and loss 186 -
Net increase in investments in associates (4,793) (778)
Net increase in assets available for sale - (26)
Net increase in investments in subsidiaries - (1,583)
Net increase in securities at fair value through profit and loss (150) (19)
Net increase in bonds held to maturity (32,443) (104,965)
Net increase in bonds at fair value through profit and loss (46,139) (118,209)
Net purchases of property and equipment (25,075) (45,049)
NET CASH USED IN INVESTING ACTIVITIES
Financing Activities
(108,348) (263,959)
Net payments from borrowings (237,905) (237,905)
Net payments from subordinated debt (14,647) (11,243)
NET CASH USED IN FINANCING ACTIVITIES (252,552) (249,148)
NET INCREASE IN CASH AND CASH EQUIVALENTS 2,704 259,014
CASH AND CASH EQUIVALENTS AT 1 JANUARY 432,260 173,246
CASH AND CASH EQUIVALENTS AT 31 DECEMBER 434,964 432,260
www.raiffeisenbank.ba 77

Financial Statements
78
Unconsolidated Statements of changes
in shareholders’ equity
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
www.raiffeisenbank.ba
Share
capital
Share
premium
Reserves
The accompanying notes form an integral part of these financial statements.
Retained
earnings
31 December 2008 237,388 4,473 1,476 114,273 357,610
Net income for the year - - - 8,364 8,364
Comprehensive income for the year - - 1,032 - 1,032
31 December 2009 237,388 4,473 2,508 122,637 367,006
Tax adjustment - - - (637) (637)
Net income for the year - - - 5,872 5,872
Comprehensive loss for the year - - (317) - (317)
31 December 2010 237,388 4,473 2,191 127,872 371,924
Total

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
1. GENERAL
History and incorporation
Financial Statements
Raiffeisen BANK d.d. Bosna i Hercegovina, Sarajevo, Danijela Ozme 3 (the “Bank”) is a joint stock company incorporated
in Bosnia and Herzegovina and it commenced operations in 1993. At the date of these financial statements, Raiffeisen
International Bank Holding AG held 96.99% of shareholders’ capital. As of 26 June 2009, based on court decision No.
065-0-Reg-09-001228, the Bank has officially changed its headquarters’ address to Zmaja od Bosne bb, Sarajevo.
Principal activities of the Bank
The Bank’s main operations are as follows:
1. accepting deposits from the public and placing of deposits;
2. providing current and term deposit accounts;
3. granting short- and long-term loans and guarantees to the local municipalities, corporate customers, private individuals
and other credit institutions dealing with finance lease and foreign exchange transactions;
4. money market activities;
5. performing local and international payments;
6. foreign currency exchange and other banking-related activities;
7. providing banking services through an extensive branch network in Bosnia and Herzegovina.
Supervisory Board
Herbert Stepic President
Zdenko Adrović Member
Hoedl Heinz Member
Peter Lennkh Member
Martin Gruell Member
Board of Directors
Michael Mueller General Manager
Zdenko Mihajlović Executive Director
Dino Osmanbegović Executive Director
Damir Karamehmedović Executive Director
Karlheinz Dobnigg Executive Director
Sa ne la Pa {i} Executive Director since 28 September 2010
Alexander Zsolnai Executive Director until 31 March 2010
Audit Committee
Wolfgang Trost President
Boris Tihi Member
Izudin Kešetović Member
Miloš Trifković Member
Wol fgang Ket tner Member from 13 December 2010
Suad Kurtagić Member until 13 December 2010
www.raiffeisenbank.ba 79

Financial Statements
80
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
The global ultimate parent for the Group and the Bank, as well as for the Group is Raiffeisen International Bank Holding
AG Vienna, Austria. The shareholding structure is as follows:
Shareholders
Debt and/or equity instruments of the Bank are not traded in a public market and these financial statements are not
under the regulative of the Security Commission for the purpose of issuing any class of instruments in a public market.
Therefore, the Bank considers that it operates in a single business segment, and a single geographical segment, that is
the provision of banking services in Bosnia and Herzegovina.
www.raiffeisenbank.ba
No. of
shares
31 December 2010 31 December 2009
Amount
KM ’000
%
No. of
shares
Amount
KM ’000
Raiffeisen International
Bank Holding AG
921,016 230,254 96.99 921,016 230,254 96.99
Millenia Beteiligungsverwaltungs
GmbH
28,488 7,122 3.00 28,488 7,122 3.00
Other shareholders 48 12 0.01 48 12 0.01
Share premiums - 4,473 - - 4,473 -
Total 949,552 241,861 100.00 949,552 241,861 100.00
%

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
2. ADOPTION OF NEW AND REVISED STANDARDS
2.1. Standards and Interpretations effective in current period
Financial Statements
The following amendments to the existing standards issued by the International Accounting Standards Board and interpretations
issued by the International Financial Reporting Interpretations Committee are effective for the current period:
• IFRS 1 (revised) “First-time Adoption of IFRS” (effective for annual periods beginning on or after 1 July 2009);
• IFRS 3 (revised) “Business Combinations” (effective for annual periods beginning on or after 1 July 2009);
• Amendments to IFRS 1 “First-time Adoption of IFRS” – Additional Exemptions for First-time Adopters (effective for
annual periods beginning on or after 1 January 2010);
• Amendments to IFRS 2 “Share-based Payment” – Group cash-settled share-based payment transactions (effective
for annual periods beginning on or after 1 January 2010);
• Amendments to IAS 27 “Consolidated and Separate Financial Statements” (effective for annual periods beginning
on or after 1 July 2009);
• Amendments to IAS 39 “Financial Instruments: Recognition and Measurement” – Eligible hedged items (effective
for annual periods beginning on or after 1 July 2009);
• Amendments to various standards and interpretations “Improvements to IFRSs (2009)” resulting from the annual
improvement project of IFRS published on 16 April 2009 (IFRS 2, IFRS 5, IFRS 8, IAS 1, IAS 7, IAS 17, IAS 18, IAS
36, IAS 38, IAS 39, IFRIC 9, and IFRIC 16) primarily with a view to removing inconsistencies and clarifying wording,
(most amendments are to be applied for annual periods beginning on or after 1 January 2010);
• IFRIC 17 “Distributions of Non-Cash Assets to Owners” (effective for annual periods beginning on or after 1 July
2009);
• IFRIC 18 “Transfers of Assets from Customers” (effective for transfer of assets from customers received on or after
1 July 2009);
The adoption of these amendments to the existing standards and interpretations has not led to any changes in the Bank’s
accounting policies.
www.raiffeisenbank.ba 81

Financial Statements
82
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
2.2. Standards and Interpretations in issue not yet adopted
At the date of authorisation of these financial statements, the following Standards and Interpretations were in issue but
not yet effective:
• IFRS 9 “Financial Instruments” (effective for annual periods beginning on or after 1 January 2013);
• Amendments to IFRS 1 “First-time Adoption of IFRS” – Limited Exemption from Comparative IFRS 7 Disclosures for
First-time Adopters (effective for annual periods beginning on or after 1 July 2010),
• Amendments to IFRS 7 “Financial Instruments: Disclosures”- Transfers of Financial Assets (effective for annual periods
beginning on or after 1 July 2011),
• Amendments to IAS 24 “Related Party Disclosures” – Simplifying the disclosure requirements for government-related
entities and clarifying the definition of a related party (effective for annual periods beginning on or after 1
January 2011);
• Amendments to IAS 32 “Financial Instruments: Presentation” – Accounting for rights issues (effective for annual periods
beginning on or after 1 February 2010);
• Amendments to various standards and interpretations “Improvements to IFRSs (2010)” resulting from the annual
improvement project of IFRS published on 6 May 2010 (IFRS 1, IFRS 3, IFRS 7, IAS 1, IAS 27, IAS 34, IFRIC 13)
primarily with a view to removing inconsistencies and clarifying wording (most amendments are to be applied for
annual periods beginning on or after 1 January 2011),
• Amendments to IFRIC 14 “IAS 19 – The Limit on a defined benefit Asset, Minimum Funding Requirements and their
Interaction” – Prepayments of a Minimum Funding Requirement (effective for annual periods beginning on or after
1 January 2011);
• • IFRIC 19 “Extinguishing Liabilities with Equity Instruments” (effective for annual periods beginning on or after 1
July 2010).
The Bank has elected not to adopt these standards, revisions and interpretations in advance of their effective dates. The
Bank anticipates that the adoption of these standards, revisions and interpretations will have no material impact on the
financial statements of the Bank in the period of initial application.
www.raiffeisenbank.ba

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
3. SIGNIFICANT ACCOUNTING POLICIES
Financial Statements
Basis of accounting
As required by local legislation, the Bank prepares financial statements in accordance with International Financial Reporting
Standards (IFRSs) as published by the International Accounting Standards Board and as modified by the regulatory requirements
prescribed by the Banking Agency of Federation of Bosnia and Herzegovina (the FBA) with respect to the calculation
of provision for impairment of financial instruments. These rules require banks to calculate the allowance for
impairment of financial assets based on general provisions and a matrix system, which is namely based on number of
days overdue. This is not in accordance with International Accounting Standard 39 ’Financial Instruments: Recognition and
Measurement’, which requires assessment at each balance sheet date as to whether there is any objective evidence that
a financial asset or group of financial assets is impaired. If there is objective evidence that an impairment loss on loans
and receivables carried at amortised cost has been incurred, the amount of the loss should be measured as the difference
between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit
losses that have not been incurred) discounted at the financial asset’s original effective interest rate.
If the Bank had not recorded this additional allowance in accordance with the regulatory requirements of the Banking
Agency of Federation of Bosnia and Herzegovina, the allowance of loan losses as of 31 December 2010 would have decreased
by KM 89,592 thousand, the retained earnings as of 1 January 2010 would have increased by KM 81,384 thousand
and the profit before taxation for the year ended 31 December 2010 would have increased by KM 8,208, respectively.
The financial statements have been prepared on the historical cost basis except for certain non-current assets and financial
instruments, which are reported at fair value. The financial statements are presented in thousands of convertible mark
(KM’000) which is the functional currency of the Bank.
The financial statements are prepared on an accrual basis of accounting, under the going concern assumption.
The preparation of financial statements requires management to make 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 their reported amounts of revenues and expenses during the reporting period. These estimates are based on
the information available as at the balance sheet date and actual results could differ from those estimates.
The Bank has prepared these unconsolidated financial statements as required by Law of Federation of Bosnia and Herzegovina,
and its investments in subsidiaries and associates are presented in these unconsolidated financial statements at
cost, less provision for impairment, if any. The Bank will also prepare consolidated financial statements, which will be approved
by the Management Board. Bank’s subsidiaries will be fully consolidated. For a better understanding of the Group
as a whole, users should read the consolidated financial statements.
Equity investments
A subsidiary is an entity which is controlled by the Bank. Control is achieved where the Bank has the power to govern the
financial and operating policies of an entity so as to obtain benefits from its activities.
Investments in subsidiaries in these financial statements are stated at cost less any impairment in the value of individual
investments, if needed.
An associate is an entity over which the Bank has significant influence and that is neither a subsidiary nor an interest in a
joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee
but is not control or joint control over those policies.
Investments in associates in these financial statements are stated at cost less any impairment in the value of individual investments,
if needed.
www.raiffeisenbank.ba 83

Financial Statements
84
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Interest income and expense
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial
asset to that asset’s net carrying amount.
Interest charged on deposits is added to the principal where this is foreseen by the agreement. Interest income is suspended
when it is considered that recovery of the income is unlikely. Suspended interest is recognized as income when collected.
Fee and commission income and expense
Fees and commissions consist mainly of fees earned on domestic and foreign payment transactions, and fees for loans
and other credit instruments issued by the Bank.
Fees for payment transactions are recognised in the period when services are rendered.
Loan origination fees, after approval and drawdown of loans, are deferred (together with related direct costs) and recognized
as an adjustment to the effective yield of the loan over its life.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax expense is based on taxable income for the year. Taxable income differs from net income as reported in the income
statement because it excludes items of income or expense that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates
that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and
liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit, and is accounted
for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be
available against which deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the asset to be recovered. Deferred
tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised.
Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly
to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and
the Bank has the ability and intention to settle on a net basis.
The Bank is subject to various indirect taxes which are included in administrative expenses.
Cash and cash equivalents
For the purpose of reporting cash flows, cash and cash equivalents are defined as cash, balances with the Central Bank
(’CBBH’) and current accounts with other banks.
Cash and cash equivalents exclude the compulsory minimum reserve with the Central Bank as these funds are not available
for the Bank’s day to day operations. The compulsory minimum reserve with the CBBH is a required reserve to be
held by all commercial banks licensed in Bosnia and Herzegovina.
www.raiffeisenbank.ba

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Financial Statements
Financial assets and liabilities
Financial assets are recognised and derecognised on a trade date where the purchase or sale of an investment is under
a contract whose terms require delivery of the instrument within the timeframe established by the market concerned, and
are initially measured at fair value, net of transaction costs, except for those financial assets classified as at fair value
through profit or loss, which are initially measured at fair value.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
Financial assets are classified into the following specified categories: financial assets as ’at fair value through profit
or loss’ (FVTPL), ’available-for-sale’ (AFS) financial assets and ’loans and receivables’. Main difference between mentioned
categories is in measurement approach recognition of financial assets in financial statements.
Financial assets at FVTPL
The Bank classifies a financial asset as at FVTPL where the financial asset is either held for trading or it is designated as
at FVTPL.
A financial asset is classified as held for trading if:
• it has been acquired principally for the purpose of selling in the near future; or
• it is a part of an identified portfolio of financial instruments that the Bank manages together and has a recent actual
pattern of short-term profit-taking; or
• it is a derivative that is not designated and effective as a hedging instrument.
A financial asset other than a financial asset held for trading may be designated as at FVTPL upon initial recognition if:
• such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise
arise; or
• the financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and
its performance is evaluated on a fair value basis, in accordance with the Bank’s documented risk management
or investment strategy, and information about the grouping is provided internally on that basis; or
• it forms part of a contract containing one or more embedded derivatives, and IAS 39 permits the entire combined
contract (asset or liability) to be designated as at FVTPL.
Financial assets at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net gain
or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset.
The fair values of financial assets and financial liabilities are determined as follows:
• the fair value of financial assets and financial liabilities with standard terms and conditions and traded on active
liquid markets are determined with reference to quoted market prices;
• the fair value of other financial assets and financial liabilities (excluding derivative instruments) are determined in
accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable
current market transactions; and
• the fair value of derivative instruments, are calculated using quoted prices. Where such prices are not available
use is made of discounted cash flow analysis using the applicable yield curve for the duration of the instruments
for non-optional derivatives, and option pricing models for optional derivatives.
Held-to-maturity investments
Bills of exchange, debentures and government bonds with fixed or determinable payments and fixed maturity dates that
the Bank has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-tomaturity
investments are recorded at amortized cost using the effective interest method less any impairment, with revenue
recognized on an effective yield basis.
www.raiffeisenbank.ba 85

Financial Statements
86
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
AFS financial assets
Listed shares and listed redeemable notes held by the Bank that are traded in an active market are classified as being
AFS and are stated at fair value. Fair value is determined in the manner described in the previous paragraph. Gains and
losses arising from changes in fair value are recognised directly in equity in the investments revaluation reserve with the
exception of impairment losses, interest calculated using the effective interest rate method and foreign exchange gains
and losses on monetary assets, which are recognised directly in profit or loss. Where the investment is disposed of or is
determined to be impaired, the cumulative gain or loss previously recognised in the investments revaluation reserve is included
in profit or loss for the period.
Dividends on AFS equity instruments are recognised in profit or loss when the Bank’s right to receive payments is established.
The fair value of AFS monetary assets denominated in a foreign currency is determined in that foreign currency
and translated at the spot rate at the balance sheet date. The change in fair value attributable to translation differences
that result from a change in amortised cost of the asset is recognised in profit or loss, and other changes are recognised
in equity.
Impairment of financial assets other than loans
Financial assets, other than those at FVTPL, are assessed for indicators of impairment at each reporting period date. Financial
assets are impaired where there is objective evidence that, as a result of one or more events that occurred after
the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted.
For all other financial assets objective evidence of impairment could include:
• significant financial difficulty of the counterparty; or
• default or delinquency in interest or principal payments; or
• it becoming probable that the borrower will enter bankruptcy or financial re-organisation.
For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying
amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest
rate.
With the exception of AFS equity instruments, if, in a subsequent period, the amount of the impairment loss decreases and
the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized
impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date
the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognized.
In respect of AFS equity securities, any increase in fair value subsequent to an impairment loss is recognized directly in
equity.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. Loans and receivables are measured at initial recognition at fair value, and are subsequently measured at
amortised cost using the effective interest method, less any allowance for impairment. Third party expenses, such as legal
fees, incurred in securing a loan are treated as part of the cost of the transaction as well as fees received from customers.
An allowance for loan impairment is established if there is objective evidence that the Bank will not be able to collect all
amounts due. The Bank prepares financial statements in accordance with IFRS as modified by the regulatory requirements
prescribed by the Banking Agency of FBiH. The FBA rules require banks to calculate the allowance for impairment
of financial assets based on matrix system, which is namely based on number of days overdue. As addition to this, the
Bank takes into the consideration performance of the borrower, any collateral or third party guarantees. Management assesses
allowance for loan impairment every month in order to maintain an adequate allowance for impaired loans. The
allowance for loan impairment is determined by applying prescribed loss percentages to aged loans, grouped by the numbers
of days overdue. A loan becomes late as soon as a scheduled instalment is missed. Applied matrix can be presented
as follows:
www.raiffeisenbank.ba

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Financial Statements
• for loans from 0-30 days late provisions are 2% from loan receivable outstanding,
• for loans from 31-50 days late provisions are 5% from loan receivable outstanding,
• for loans from 51-70 days late provisions are 10% from loan receivable outstanding,
• for loans from 71-90 days late provisions are 15% from loan receivable outstanding,
• for loans from 91-120 days late provisions are 16% from loan receivable outstanding,
• for loans from 121-140 days late provisions are 20% from loan receivable outstanding,
• for loans from 141-160 days late provisions are 30% from loan receivable outstanding,
• for loans from 161-180 days late provisions are 40% from loan receivable outstanding,
• for loans from 181-210 days late provisions are 41% from loan receivable outstanding,
• for loans from 211-230 days late provisions are 45% from loan receivable outstanding,
• for loans from 231-250 days late provisions are 50% from loan receivable outstanding,
• for loans from 251-270 days late provisions are 60% from loan receivable outstanding and
• for loans above 271 days late provisions are 100% from loan receivable outstanding.
This is not in accordance with International Accounting Standard 39 ’Financial Instruments: Recognition and Measurement’,
which requires assessment at each balance sheet date as to whether there is any objective evidence that a financial asset
or group of financial assets is impaired. If there is objective evidence that an impairment loss on loans and receivables
carried at amortized cost has been incurred, the amount of the loss should be measured as the difference between the
asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not
been incurred) discounted at the financial asset’s original effective interest rate.
When a loan is uncollectible, it is written off against the related allowance for impairment; subsequent recoveries are credited
to the ’Impairment losses on loans and advances’ line in the statement of income.
The Bank charges penalty interest to borrowers when a portion of the loan falls overdue. Penalty interest is accounted for
on a cash received basis in the caption ’Interest income’.
Derecognition of financial assets
Bank derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire; or it transfers
the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Bank
neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred
asset, the Bank continues to recognize the financial asset.
Financial liabilities
Classification as debt or equity
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of
the contractual arrangement.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Equity instruments issued by the Bank are recorded at the proceeds received, net of direct issue costs.
Financial guarantee contract liabilities
Financial guarantee contract liabilities are measured initially at their fair values and are subsequently measured at the
higher of:
• the amount of the obligation under the contract, as determined in accordance with IAS 37 Provisions, Contingent
Liabilities and Contingent Assets; or
• the amount initially recognized less, where appropriate, cumulative amortization recognized in accordance with
the revenue recognition policies set out at above.
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Financial Statements
88
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Financial liabilities
Financial liabilities are classified as either financial liabilities “at FVTPL” or “other financial liabilities”. The Bank creates
one category of financial liabilities, for which basis of accounting is disclosed below.
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at amortized cost using the effective interest method, with interest
expense recognized on an effective yield basis.
The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments
through the expected life of the financial liability, or, where appropriate, a shorter period.
Derecognition of financial liabilities
The Bank derecognizes financial liabilities when, and only when, the Bank’s obligations are discharged, cancelled or they
expire.
Property, equipment and intangible assets
Property, equipment and intangible assets are stated at cost less accumulated depreciation, amortisation and accumulated
impairment losses, if any. Cost includes the purchase price and directly associated cost of bringing the asset to a
working condition for its intended use. Maintenance and repairs, replacements and improvements of minor importance
are expensed as incurred. Significant improvements and replacement of assets are capitalised. Gains or losses on the retirement
or disposal of property and equipment are included in the statement of income in the period in which they occur.
Properties in the course of construction are carried at cost, less impairment loss, if any. Depreciation and amortization commences
when the assets are ready for their intended use. Depreciation and amortization is calculated on a straight-line
basis over the estimated useful life of the applicable assets and based upon the application of the following annual percentages
to historical costs:
2010 2009
Buildings 1.3% 1.3%
Furniture and vehicles 11%-15.5% 11%-15.5%
Computers 33.3% 33.3%
Other equipment 7%-20% 7%-20%
Intangible assets 20% 20%
Impairment
At each reporting period date, the Bank reviews the carrying amounts of its property and equipment to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the greater of net selling price and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset
is reduced to its recoverable amount. Impairment losses are recognized as an expense immediately, unless the relevant
asset is land or buildings other than investment property carried at a revalued amount, in which case the impairment loss
is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of
its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognized for the asset in prior years. A reversal of an impairment loss
www.raiffeisenbank.ba

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Financial Statements
is recognized as income immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal
of the impairment loss is treated as a revaluation increase.
As of 31 December 2010 and 2009, respectively, property and equipment of the Bank were not impaired.
Employee benefits
On behalf of its employees, the Bank pays pension and health insurance on and from gross salaries. The Bank is paying
the above contributions into the Federal Pension and Health Fund and Funds of Republic of Srpska and Br~ko District as
per the set legal rates during the course of the year. In addition, meal allowances, transport allowances and vacation
bonuses are paid in accordance with the local legislation. These expenses are recorded in the statement of income in the
period in which the salary expense is incurred.
Foreign currency translation
Transactions in currencies other than Bosnia and Herzegovina KM are initially recorded at the rates of exchange prevailing
on the dates of the transactions. Monetary assets and liabilities are translated at the rates prevailing on the balance
sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the
rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical
cost in a foreign currency are not retranslated. Profits and losses arising on translation are included in the statement
of income for the period.
The Bank values its assets and liabilities by middle rate of Central Bank of Bosnia and Herzegovina valid at the date of
balance sheet. The principal rates of exchange set forth by the Central Bank and used in the preparation of the Bank’s
balance sheet at the reporting dates were as follows:
31 December 2010 1 EUR = 1.95583 KM 1 USD = 1.472764 KM
31 December 2009 1 EUR = 1.95583 KM 1 USD = 1.364088 KM
Provisions
Provisions are recognised when the Bank has a present obligation as a result of a past event, and it is probable that the
Bank will be required to settle that obligation. Management Board estimates the provisions based at the best estimate of
expenditure to settle the Bank’s obligation. Provisions are discounted to present value where the effect is material.
Reclassification
Certain amounts in the previous year financial statements have been reclassified to conform with the current year presentation.
Regulatory requirements
The Bank is subject to the regulatory requirements of the Federal Banking Agency. These regulations include limits and
other restrictions pertaining to minimum capital adequacy requirements, classification of loans and off balance sheet
commitments and forming allowances to cover credit risk, liquidity, interest rate and foreign currency position.
www.raiffeisenbank.ba 89

Financial Statements
90
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
4. CRITICAL ACCOUNTING JUDGMENTS AND ESTIMATIONS
In the application of the Bank’s accounting policies, which are described in Note 3, the directors are required to make
judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and other factors that
are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimate is revised if the revision affects only that period or in the period of the revision
and future periods if the revision affects both current and future periods.
The Bank prepares financial statements in accordance with IFRS as modified by the regulatory requirements prescribed
by the Banking Agency of FBiH. The FBA rules require banks to calculate the allowance for impairment of financial assets
based on general provisions and a matrix system, which is namely based on number of days overdue.
5. GLOBAL MARKET CRISIS
Due to the fact that financial crisis and deteriorating economic conditions eased last year (although a debt crisis is still on
hold), the Bank will probably operate in a bit less difficult and uncertain economic environment in 2011.
So far, the ongoing financial crisis has had an impact on the financial position and performance of the Bank, mainly due
to the increased level of provisions for loan losses. The Bank monitors closely the credit, liquidity, interest rate and foreign
exchange risks on a regular basis. The capital adequacy of the Bank is expected to remain at a current level, sufficient to
continue the banking operations without any additional equity injections. Liquidity is also expected to be satisfactory without
requiring new refinancing from the parent company for next 12 months. In case of additional financing needs, the
Bank has appropriate arrangements with the parent company with regard to the provision of all necessary support measures.
The economic situation in the country will probably impact the position of certain industries and the abilities of some
clients to meet their loan obligations. This consequently influenced the amount of the Bank’s provisions for impairment
losses in 2010 and other areas that require estimates to be made by management, including the valuation of collateral
and of securities. The key priorities of the Management of the Bank in 2011 are attention to the management of the financial
portfolio adjusting to the changing economic environment and maintaining the Bank’s position on the market.
www.raiffeisenbank.ba

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
6. INTEREST INCOME
7. INTEREST EXPENSE
8. FEE AND COMMISSION INCOME
Financial Statements
2010 2009
Citizens 117,284 135,229
Companies 85,265 96,225
Government Bonds – held to maturity (Note 24) 3,441 519
Domestic Banks 2,268 3,343
Foreign Banks 2,004 5,767
Non-profit organizations 34 33
Total 210,296 241,116
2010 2009
Citizens 43,734 43,718
Companies 30,543 50,159
Foreign Banks 12,171 28,436
Domestic Banks 64 735
Non-profit organizations 28 366
Total 86,540 123,414
2010 2009
Payment transactions 26,810 24,334
Transactions with citizens 19,656 16,830
Loans and guarantees 10,772 10,676
FX transactions 2,862 2,389
Other 999 878
Total 61,099 55,107
www.raiffeisenbank.ba 91

Financial Statements
92
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
9. FEE AND COMMISSION EXPENSE
2010 2009
Borrowed funds and other bank services 5,485 4,870
Correspondent accounts 1,970 1,420
Domestic payment transactions 635 617
Total 8,090 6,907
10. NET FINANCIAL INCOME
11. COLLECTED WRITE-OFFS
www.raiffeisenbank.ba
2010 2009
Gains on foreign exchange transactions 10,616 8,850
Losses on foreign exchange transactions (1,173) (1,126)
Interest income from bonds at fair value through profit and
loss (Note 23)
9,107 810
Income from dividends 79 54
Net loss from forward operations (1) -
Net income / (loss) from sale of securities (Note 20) 23 (21)
Allocation of profit from associates - 778
Net loss from sale – bonds FVTPL (Note 23) (374) -
Fair value adjustment – securities FVTPL (Note 20) (407) (601)
Fair value adjustment – bonds FVTPL (Note 23) (1,614) 572
Total 16,256 9,316
2010 2009
Principal 8,160 5,775
Interest 3,321 2,324
Fees 6 33
Total 11,487 8,132

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
12. ADMINISTRATIVE EXPENSES
Financial Statements
2010 2009
Gross salaries 47,168 50,210
Personnel expenses – other 12,220 8,680
Deposit insurance premiums 7,372 6,834
Services 7,047 7,694
Consultancy expenses 6,163 6,007
Maintenance 5,607 4,675
Telecommunication expense 5,514 5,919
Rent 5,055 6,066
Representation and marketing expense 3,882 3,853
Material expenses 2,930 3,065
Asset insurance premiums 2,599 2,776
Energy 2,013 1,890
Taxes and administrative expenses 1,731 556
Foreign exchange losses 1,542 599
Insurance expense for employees 1,534 409
Court case settlement 1,440 -
Other employee benefits per IAS 19 (Note 29) 1,216 173
Education 742 630
Disposals of fixed assets 522 159
Transportation 243 228
Donations 124 274
Other expenses 4,301 4,272
Total 120,965 114,969
The Bank does not have pension arrangements separate from Bosnia and Herzegovina pension system. This system requires
that current contributions by the employer be calculated as a percentage of current gross salary payments and taxes
on net salary; these expenses are charged to the statement of income in the period the related compensation is earned
by the employee.
The average number of personnel employed by the Bank during the years ended 31 December 2010 and 2009 was 1,658
and 1,719, respectively.
13. IMPAIRMENT LOSSES AND PROVISIONS
2010 2009
Placements with banks (Note 17) 43 18
Loans and receivables (Note 18) 65,781 54,073
Property and equipment (Note 26) 860 (551)
Equity investments (Note 21) (12) 48
Impairment of assets in kind (Note 22) - 813
Other assets (Note 25) 1,391 4,797
Financial commitments and contingent liabilities (Note 32) 1,434 (5,595)
Total 69,497 53,603
www.raiffeisenbank.ba 93

Financial Statements
94
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
14. INCOME TAX
Tax liability is based on accounting income taking into the account non-deductible expenses and non-taxable income. Tax
income rate for the years ended 31 December 2010 and 2009 was 10%.
2010 2009
Current tax (2,312) (1,173)
Deferred tax 307 (43)
Total tax (2,005) (1,216)
2010 2009
Balance on 1 January 2010 162 205
Used deferred tax asset during the period - (43)
Recognized deferred tax asset for the period 307 -
Balance on 31 December 2010 469 162
The Management of the Bank believes that the deferred asset will be recoverable and/or utilized in near future, and therefore,
deferred tax assets have been recorded in the accompanying financial statements.
The tax expense for the year can be reconciled to the accounting profit as follows:
2010 2009
Profit before income tax 7,877 9,580
Temporary differences 3,073 (431)
Permanent differences 6,796 2,583
Taxable income 17,746 11,732
Income tax at rate of 10% 1,775 1,173
Tax adjustment – Republic of Srpska entity’s legislation 537 -
Income tax liability 2,312 1,173
Temporary difference in year 2010 and 2009, respectively relates to prepaid loan origination fees for borrowings obtained,
and on loan origination fees for approved loans collected in advance, which are deferred on loan duration period. Permanent
difference in year 2010 and 2009, respectively relates to non deductable expenses such as provisions for employee
benefits: severance payment and provisions for unused vacation, bonus for managers, other employee benefits
above non-taxable amount, entertainment expenses, and general loan loss provision over 20% from gross profit; and deductable
items such as release of provisions recognized in previous year as taxable expense.
In 2010 the Bank made a tax adjustment through the retained earnings for the tax liability toward entity of Republic of
Srpska for the year ended 31 December 2009 due to a different base for the calculation of tax liability in two entities of
Bosnia and Herzegovina. In the process of submission of Tax balance for 2009 to the Tax authorities in March 2010, the
Bank realized that the tax liability was understated for the respective amount and the tax adjustment was made amounting
to KM 637 thousand through the retained earnings as of 31 December 2010.
www.raiffeisenbank.ba

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
15. CASH AND CASH EQUIVALENTS
16. OBLIGATORY RESERVE AT CENTRAL BANK
Financial Statements
31 December 2010 31 December 2009
Cash on hand in domestic currency 41,783 35,298
Cash on hand in foreign currency 20,745 35,159
Current account in domestic currency with the Central Bank 323,321 254,339
Correspondent accounts with banks in foreign currency 49,082 107,391
Checks in foreign currency 33 73
Total 434,964 432,260
31 December 2010 31 December 2009
Obligatory reserve 305,865 343,007
Total 305,865 343,007
Minimum obligatory reserve is calculated as 14% at 31 December 2010 and 14% as at 31 December 2009 of the average
amount of deposits and borrowed funds in all currencies for each working day.
Interest rate on funds kept up to minimum obligatory reserve decreased from 0.5% to 0.2%. Cash held at the obligatory
reserve account with the Central Bank of Bosnia and Herzegovina is not available for daily operations without specific approval
from the Central Bank and the Federal Banking Agency.
17. PLACEMENTS WITH OTHER BANKS
31 December 2010 31 December 2009
Short-term placements with banks in following countries:
Bosnia and Herzegovina 46 47
OECD countries 250,313 706,213
Placements to other financial institutions, gross 250,359 706,260
Less: Provisions for possible losses for placements (77) (34)
Total 250,282 706,226
The interest rate for placements in EUR was 0.13%-1.00% p.a. during 2010 and 0.03%-5.14% p.a. during 2009 and for
placements in USD 0.03%-0.65% p.a. during 2010 and 0.01%-2.75% p.a during 2009. Interest rate on placements in
other currencies was 0.10%-5.00% p.a. and 0.01%-4.85% p.a. as at 31 December 2010 and 31 December 2009, respectively.
The movements in the provision for impairment of placements with other banks are summarized as follows:
2010 2009
Balance as at 1 January 34 16
Changes in provisions (Note 13) 43 18
Balance as at 31 December 77 34
www.raiffeisenbank.ba 95

Financial Statements
96
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
18. LOANS AND RECEIVABLES
31 December 2010 31 December 2009
Short-term loans in domestic currency 635,771 624,644
Short-term loans in foreign currency 224 263
Current portion of long-term loans 472,647 492,911
Total short-term loans 1,108,642 1,117,818
Long-term loans in domestic currency 1,701,490 1,771,436
Long-term loans in foreign currency 32,705 37,697
(Current portion of long-term loans) (472,647) (492,911)
Total long-term loans 1,261,548 1,316,222
Total loans before provisions 2,370,190 2,434,040
Provision for impairment (127,000) (118,319)
Total 2,243,190 2,315,721
Short-term loans are granted for periods of 30 to 365 days. The majority of short-term loans in domestic currency are
granted to clients for working capital financing. Long-term loans are mostly granted to individuals for housing and vehicle
purchases. During 2010 the Bank decreased the level of new approved loans and concentrated more on collection
of existing receivable balances.
The movement in the provision for impairment of loans is summarized as follows:
2010 2009
Balance as at 1 January 118,319 109,521
Provisions charged (Note 13) 65,781 54,073
Write-offs (57,100) (45,275)
Balance as at 31 December 127,000 118,319
Total amount of non-performing loans on which interest was suspended as at 31 December 2010 and 2009 was KM
111,578 thousand and KM 65,185 thousand, respectively.
31 December 2010 31 December 2009
Trade 607,455 578,011
Construction industry 81,420 89,303
Services, finance, sport, tourism 76,791 73,651
Administrative and other public institutions 49,778 22,651
Agriculture, forestry, mining and energy 347,072 348,897
Transport and telecommunications 43,099 57,318
Other 10,965 12,493
Citizens 1,153,610 1,251,716
Total 2,370,190 2,434,040
www.raiffeisenbank.ba

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Interest rates for granted loans as at 31 December 2010 and 2009 are summarized as follows:
19. SECURITIES AVAILABLE FOR SALE
Financial Statements
31 December 2010 31 December 2009
KM ’000 Annual interest rate KM ’000 Annual interest rate
Domestic currency
Companies 1,185,247 5.53% - 18.00% 1,147,262 6.25% - 18.00%
Citizens
Foreign currency
1,152,014 2.00% - 18.00% 1,248,819 0% - 18.00%
Companies 31,333 8.55% - 8.55% 35,062 2.00% - 12.20%
Citizens 1,596 7.00% - 9.60% 2,897 7.00% - 9.60%
Total 2,370,190 2,434,040
31 December 2010 31 December 2009
Registry of Securities FBiH 14 14
S.W.I.F.T. Belgium 121 121
Bamcard d.d. Sarajevo 3 3
Bosna Sunce Osiguranje d.d. Sarajevo 1 1
Raiffeisen training centar d.o.o. 1 1
Visa International Service Association 2,101 2,418
Total 2,241 2,558
During 2010, the Bank recognized decrease in revaluation reserves related to securities available for sale in the amount
of KM 317 thousand. Total revaluation reserve related to securities available sale is KM 2,191 thousand as of 31 December
2010.
www.raiffeisenbank.ba 97

Financial Statements
98
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
20. SECURITIES AT FAIR VALUE THROUGH PROFIT AND LOSS
31 December 2010 31 December 2009
Intesa Sanpaolo Banka d.d. Bosna i Hercegovina 485 677
BH Telecom d.d. Sarajevo 284 303
Fabrika Duhana Sarajevo d.d. Sarajevo 428 252
Sarajevo osiguranje d.d. Sarajevo 113 161
Nova banka a.d. Banja Luka 91 147
Telecom Srpske a.d. Banja Luka 145 90
Vakufska Banka d.d. Sarajevo 53 52
Klas d.d. Sarajevo 30 33
Metal a.d. Gradi{ka 29 29
Velprom dd Sanski Most 1 -
Union banka d.d. Sarajevo 5 -
Kristal Invest Fond AD Banja Luka - 62
Standard d.d. Sarajevo - 33
Bosnalijek d.d. Sarajevo - 6
Energopetrol d.d. Sarajevo - 4
IF Prof plus d.d. Sarajevo - 3
Total 1,664 1,852
The Bank continued with trading activities of above-mentioned securities in 2010 with the purpose of selling them in the
near future. Securities are quoted at the Sarajevo Stock Exchange and Banja Luka Stock Exchange. Net income from sale
of securities portfolio for the year ended amounted to KM 23 thousand (Note 10).
At the balance sheet date the Bank made a fair value adjustment of above-mentioned securities that resulted in net loss
of KM 407 thousand (Note 10).
21. INVESTMENTS IN SUBSIDIARIES
31 December 2010 31 December 2009
Raiffeisen Brokers d.o.o. Sarajevo 507 507
Raiffeisen Special Assets Company d.o.o. Sarajevo 1,983 1,983
Total investments 2,490 2,490
Provision for impairment (202) (214)
Total 2,288 2,276
The movements in the provision for impairment of investments are summarized as follows:
2010 2009
Balance as at 1 January 214 166
Changes in provisions (Note 13) (12) 48
Balance as at 31 December 202 214
www.raiffeisenbank.ba

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Structure of investments by industry and country of origin as of 31 December 2010 can be summarized as follows:
22. INVESTMENTS IN ASSOCIATES
Financial Statements
Company Industry % Held Country of origin
Raiffeisen Brokers d.o.o. Sarajevo Trading with securities 100.00% Bosnia and Herzegovina
Raiffeisen Special Assets
Company d.o.o. Sarajevo
Financial Advisory services 100.00% Bosnia and Herzegovina
During 2009 Raiffeisen BANK d.d. Bosna i Hercegovina, as 49% owner of the Raiffeisen Leasing d.o.o. Sarajevo (’the Company’),
has decided to increase capital in its associate by a contribution in kind of KM 4,793 thousand, which represented
26 apartments in Sarajevo, and 4 parking areas in the amount of KM 3,375 thousands, as well as cash payment
in the amount of KM 1,418 (Note 25). Before the contribution was made, the impairment of assets in kind was recognized
in amount of KM 813 thousand (Note 13).
Required documentation for Company’s equity increase was submitted to the Cantonal Court in Sarajevo on 9 December
2009. The process of registration for equity was finalized on 25 June 2010, so the Bank was able to recognize this
increase as investment in year 2010.
23. BONDS AT FAIR VALUE THROUGH PROFIT AND LOSS
31 December 2010 31 December 2009
Raiffeisen Leasing d.o.o. Sarajevo 8,173 3,380
Total 8,173 3,380
Company Industry % Held Country of origin
Raiffeisen Leasing d.o.o. Sarajevo Leasing 49.00% Bosnia and Herzegovina
31 December 2010 31 December 2009
Romania 89,503 118,781
Germany 13,968 -
Belgium 11,662 -
Finland 11,072 -
The Netherlands 10,679 -
France 9,742 -
Spain 6,483 -
Portugal 4,058 -
Italy 3,842 -
Slovenia 2,111 -
Total 163,120 118,781
The Bank continued with trading activities of above-mentioned bonds in 2010 with the purpose of selling them in the near
future. Bonds are valued based on report obtained from Reuters showing the latest bids for the bond as of 31 December
2010. The Bank selects the six most active traders and takes the average of the latest bids to these contributors. Net loss
from sale of bonds from this portfolio for the year ended 31 December 2010 amounted to KM 374 thousand (Note 10).
At the balance sheet date the Bank made a fair value adjustment of above-mentioned bonds that resulted in net loss of
KM 1,614 thousand (Note 10). Interest income earned on the bonds portfolio in 2010 was KM 9,107 thousand (Note 10).
www.raiffeisenbank.ba 99

100
Financial Statements
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
24. BONDS HELD TO MATURITY
31 December 2010 31 December 2009
Austria 40,766 39,195
Albania 25,206 -
Belgium 21,024 20,947
Italy 12,615 12,298
The Netherlands 10,191 10,249
Portugal 10,110 10,200
Slovenia 7,955 8,018
Federation of Bosnia and Herzegovina 5,507 -
Austria 4,034 4,058
Total 137,408 104,965
The Bank purchased EUR 6,000 thousand bonds and USD 18,000 thousand bonds issued by the government of the Republic
of Austria. The EUR bonds bear interest at the rates between 3.40% to 5.00% p.a. and mature between 15 July 2012
and 20 October 2014. The USD bonds bear interest at the rates between 3.25% p.a. and 5.00% p.a. and mature between
25 June 2013 and 19 May 2014.
The Bank purchased EUR 13,086 thousand bonds issued by the government of Albania. The bonds do not bear interest
and mature on 29 March 2011.
The Bank purchased EUR 5,000 thousand bonds and USD 6,500 thousand bonds issued by the government of the Kingdom
of Belgium. The EUR bonds bear interest at 8% p.a. and mature on 24 December 2012. The USD bonds bear interest
at 4.25% p.a. and mature on 3 September 2013.
The Bank purchased EUR 2,000 thousand bonds and USD 5,500 thousand bonds issued by the government of the Republic
of Italy. The EUR bonds bear interest at 4.25% p.a. and mature on 15 October 2012. The USD bonds bear interest
at 5.625% p.a. and mature on 15 June 2012.
The Bank purchased EUR 5,000 thousand bonds issued by Fortis Bank Nederland, the Netherlands. The bonds are under
the guarantee of the government of the Netherlands. The bonds bear interest at 3.375% p.a. and mature on 19 May 2014.
The Bank purchased EUR 5,000 thousand bonds issued by Banif Banco International, Portugal. The bonds are under the
guarantee of the government of Portugal. The bonds bear interest at 3.25% p.a. and mature on 8 May 2012.
The Bank purchased EUR 3,959 thousand bonds issued by Nova Ljubljanska Banka, Slovenia. The bonds are under the
guarantee of the government of Slovenia. The bonds bear interest at 3.25% p.a. and mature on 23 July 2012.
The Bank purchased KM 8,044 thousand bonds issued by the Federation of Bosnia and Herzegovina. The bonds bear
interest at 2.5% p.a. and mature between 30 September 2011 and 30 June 2020.
The Bank purchased EUR 2,000 thousand bonds issued by Komunalkredit, Austria. The bonds are under the guarantee
of the government of Austria. The bonds bear interest at 3.125% p.a. and mature on 8 July 2013.
In 2010, the Bank recognized KM 1,833 thousand of premium amortization expense and interest income earned on the
bonds purchased from abroad amounting to KM 4,396 thousand.
The Bank also recognized the amortized discount amounting to KM 834 thousand and interest income amounting to KM
44 thousand on bonds purchased from the Government of Federation of BiH.
Therefore, total net earnings on bonds were KM 3,441 thousand (Note 6).
www.raiffeisenbank.ba

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
25. OTHER ASSETS
The movements in the provision for impairment of other assets are summarized as follows:
Financial Statements
31 December 2010 31 December 2009
Prepaid taxes 6,242 7,108
Receivables from credit cards operations 6,759 6,313
Receivables from spot FX transactions 2,524 4,102
Other receivables for paid tax 1,830 1,739
Receivables – Federation of BiH Bonds * 1,134 -
Prepaid expenses 1,095 1,263
Fees receivable 620 510
Advances-other 437 1,095
Contribution in kind – Raiffeisen Leasing d.o.o. Sarajevo
(Note 22)
- 4,792
Other assets 3,060 3,012
Total other assets 23,701 29,934
Provision for impairment (6,730) (5,363)
Total 16,971 24,571
2010 2009
Balance as at 1 January 5,363 913
Increase / (decrease) of provisions (Note 13) 1,391 4,797
Write-offs (24) (347)
Balance as at 31 December 6,730 5,363
* As of 31 December 2010 the receivables amounting to KM 1,134 thousand relate to process of purchase of bonds from
Federation of BiH. These bonds were bought on 30 December 2010 with the settlement date on 5 January 2011. As of
5 January 2011 the Bank recognized these bonds in the amount of KM 1,134 in held to maturity portfolio.
www.raiffeisenbank.ba 101

102
Financial Statements
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
26. PROPERTY, EQUIPMENT AND INTANGIBLE ASSETS
www.raiffeisenbank.ba
Land and
Buildings
KM ’000
Vehicles
KM ’000
Office
equipment
KM ’000
Construction
in progress
KM ’000
Intangible
fixed assets
KM ’000
Total
KM ’000
Cost value
31 December 2009 100,174 1,993 44,861 17,318 13,042 177,388
Additions - - - 25,075 - 25,075
Transfers from/to 73 91 4,530 (6,066) 1,372 -
Write offs and disposals - (467) (5,200) (17) (834) (6,518)
31 December 2010
Depreciation
100,247 1,617 44,191 36,310 13,580 195,945
31 December 2009 2,417 1,060 24,101 - 7,766 35,344
Depreciation in 2010 1,207 273 6,146 - 1,609 9,235
Write offs and disposals - (404) (4,695) - (834) (5,933)
31 December 2010 3,624 929 25,552 - 8,541 38,646
Net book value: 31 December 2010,
before provision for impairment
Provision for impairment
96,623 688 18,639 36,310 5,039 157,299
31 December 2009 - - 841 - - 841
Increase in provisions (Note 13) - - 860 - - 860
31 December 2010 - - 1,701 - - 1,701
Net book value:
31 December 2010
Cost value
96,623 688 16,938 36,310 5,039 155,598
31 December 2008 37,243 1,940 39,266 53,518 10,686 142,653
Additions - - - 45,049 - 45,049
Transfers from/to 67,281 258 8,358 (79,292) 3,395 -
Write offs and disposals (4,350) (205) (2,763) (1,957) (1,039) (10,314)
31 December 2009
Depreciation
100,174 1,993 44,861 17,318 13,042 177,388
31 December 2008 1,765 922 20,986 - 7,653 31,326
Depreciation in 2009 756 305 5,737 - 1,151 7,949
Write offs and disposals (104) (167) (2,622) - (1,038) (3,931)
31 December 2009 2,417 1,060 24,101 - 7,766 35,344
Net book value: 31 December 2009,
before provision for impairment
Provision for impairment
97,757 933 20,760 17,318 5,276 142,044
31 December 2009 - - 1,392 - - 1,392
Release of provisions (Note 13) - - (551) - - (551)
31 December 2009 - - 841 - - 841
Net book value:
31 December 2009
97,757 933 19,919 17,318 5,276 141,203

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
27. DUE TO BANKS
Financial Statements
31 December 2010 31 December 2009
Current portion of long-term borrowings 148,587 369,974
Long-term borrowings from foreign banks 576,270 941,510
Long-term borrowings from domestic banks 4,055 6,655
(Current portion of long-term borrowings) (148,587) (369,974)
Total long-term borrowings 580,325 948,165
Current accounts in domestic currency 195 498
Current accounts in foreign currency 105 825
Total current accounts 300 1,323
Short-term deposits in domestic currency 1,188 1,442
Short-term deposits in foreign currency 1,967 1,395
Total short-term deposits 3,155 2,837
Long-term deposits 4,370 6,482
Total 588,150 958,807
Long-term borrowings from international banks and non-banking financial institutions as at 31 December 2010 and
2009 were as follows:
31 December 2010 31 December 2009
Supranational and development banks 321,502 385,256
Commercial banks – related party 62,237 241,088
Commercial banks – other 4,406 103,629
Other financial institutions 188,125 211,537
Total 576,270 941,510
Interest rates for long-term borrowings from banks were in the range from fixed rates of 1.00% to 4.83% during the year
2010, and from 2% to 4.95% during the year 2009 respectively, and from EURIBOR+0.09% to EURIBOR+5.75 % per
annum during 2010, and from EURIBOR+0.097% to EURIBOR+5.75% during 2009, respectively.
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104
Financial Statements
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
28. DUE TO CUSTOMERS
31 December 2010 31 December 2009
Demand deposits:
Citizens:
In KM 298,791 225,307
In foreign currencies 297,105 212,944
Subtotal
Legal entities:
595,896 438,251
In KM 667,791 685,660
In foreign currencies 106,214 128,656
Subtotal 774,005 814,316
Total demand deposits
Term deposits:
Citizens:
1,369,901 1,252,567
In KM 129,530 135,853
In foreign currencies 938,380 952,276
Subtotal
Legal entities:
1,067,910 1,088,129
In KM 64,311 119,849
In foreign currencies 120,583 262,986
Subtotal 184,894 382,835
Total term deposits 1,252,804 1,470,964
Total 2,622,705 2,723,531
Interest rate on demand deposits in KM were 0.10%-0.30% and from 0.00%-4.20% for 2010 and 2009, respectively. Interest
rates on demand deposits in foreign currency were 0.00%-1.75% and 0.00%-2.72% in 2010 and 2009, respectively.
Interest rates on short term deposits were from 0.00%-3.60% in 2010 and in 2009 from 0.10%-9.01%. Interest rates
on long term deposits were from 1.50%-5.00% in 2010 and from 1.50% to 8.05% in 2009.
www.raiffeisenbank.ba

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
29. OTHER LIABILITIES
Financial Statements
31 December 2010 31 December 2009
Collected principal and interest upfront 11,204 13,668
Deferred income 5,176 4,753
Liabilities to employees* 8,340 4,312
Liabilities to vendors 3,207 1,994
Liabilities from credit card operations 3,057 2,001
Tax liabilities 164 40
Liabilities towards shareholders 11 11
Other liabilities 1,454 785
Total 32,613 27,564
* The amount of liabilities to employees includes KM 4,134 thousand (2009: KM 2,918 thousand) related to provisions
for compensations to employees, which include provisions for annual vacation and severance payments
Changes in provisions for employees benefits are as follows:
Balance 1 January 2009 2,745
Additional provisions recognized (Note 12) 2,760
Use and release of provisions (Note 12) (2,587)
Balance 1 January 2010 2,918
Additional provisions recognized (Note 12) 3,195
Use and release of provisions (Note 12) (1,979)
Balance 31 December 2010 4,134
30. SUBORDINATED DEBT
31 December 2010 31 December 2009
Supranational and development banks 19,642 19,621
Commercial banks – related party 35,919 50,602
Commercial banks – other 26,455 26,440
Total 82,016 96,663
As of 31 December 2010 and 2009 the subordinated debt amounts to KM 82,016 thousand and KM 96,663 thousand,
respectively.
As of 18 May 2008, one loan was received from Supranational and development banks in total amount of 19,558 thousands
KM with maturity on 18 May 2015, repaid semi-annually.
Commercial banks – related parties have provided six loans, received in period from 27 May 2003 to 26 June 2006, in
total amount of KM 62,000 thousands. Those loans mature in period from 20 June 2011 to 30 June 2013, with semiannual
repayments.
Commercial banks – other banks, have provided two loans, received in period from 1 June 2007 to 12 September 2007,
in total amount of KM 26,404 thousands. Those loans mature in period from 31 May 2014 to 12 September 2014, with
semi-annual repayments.
Interest rates of subordinated loans are in range from EURIBOR+2% to EURIBOR+2.8%.
The amount of total subordinated debt as of 31 December 2010 and 2009 includes accrued interest liabilities in amount
of KM 634 thousand and KM 735 thousand, respectively, decreased for prepaid expenses related to fees for borrowed funds.
Subject to the approval of the Federal Banking Agency, subordinated debt may be used as additional capital for regulatory
purposes.
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106
Financial Statements
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
31. FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIES
31 December 2010 31 December 2009
Contingent liabilities
Payment guarantees 123,031 130,756
Performance guarantees 182,594 180,338
Letters of credit 34,687 21,271
Advances 67 -
Total contingent liabilities
Commitments
340,379 332,365
Unused portion of overdraft loans 220,392 261,818
Frame agreements 337,995 272,327
Total commitments 558,387 534,145
Total contingent liabilities and commitments 898,766 866,510
32. PROVISIONS FOR FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIES
In the ordinary course of business, the Bank enters into credit related commitments which are recorded in off-balance sheet
accounts and primarily include guarantees, letters of credit and undrawn loan commitments. Provisions for contingent liabilities
are recognised in accordance with regulatory requirements of Banking Agency of Federation of Bosnia and Herzegovina.
Movements in provision for contingent liabilities and commitments are as follows:
2010 2009
Balance as at 1 January 23,391 40,573
Increase/ (decrease) in provisions (Note 13) 1,434 (5,595)
Write – offs - (11,587)
Balance as at 31 December 24,825 23,391
www.raiffeisenbank.ba

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
33. RELATED-PARTY TRANSACTIONS
Financial Statements
Related parties, as defined by IAS 24, are those counter parties that represent:
a. enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are
under common control with, the reporting enterprise. (This includes holding companies, subsidiaries and fellow
subsidiaries);
b. associates – enterprises in which the Bank has significant influence and which is neither a subsidiary nor a joint
venture of the investor;
c. individuals owning, directly or indirectly, an interest in the voting power of the Bank that gives them significant influence
over the Bank, and anyone expected to influence, or be influenced by, that person in their dealings with
the Bank;
d. key management personnel, that is, those persons having authority and responsibility for planning, directing and
controlling the activities of the Bank, including directors and officers of the Bank and close members of the families
of such individuals; and
e. enterprises in which a substantial interest in the voting power is owned, directly or indirectly, by any person described
in (c) or (d) or over which such a person is able to exercise significant influence. This includes enterprises owned
by directors or major shareholders of the Bank and enterprises that have a member of key management in common
with the Bank.
In considering each possible related party relationship, attention is directed to the substance of the relationship, and not
merely the legal form.
The Bank has significant funding in the form of loans from banks and subordinated debt from related parties as disclosed
below:
31 December 2010 31 December 2009
Loans Raiffeisen Leasing d.o.o. Sarajevo 3 -
Loans Raiffeisen Brokers d.o.o. Sarajevo 341 403
Receivables from Raiffeisen Brokers d.o.o. Sarajevo 1,134 17
Loans Raiffeisen S.A.C d.o.o. Sarajevo 1,119 1,119
Total receivables: 2,597 1,539
Due to banks and subordinated debt Raiffeisen Zentralbank
Österreich AG, Vienna
98,156 291,690
Deposits Raiffeisen Zentralbank Österreich AG, Vienna 19 15
Subordinated debt RZB Landesbank Steiermark 12,713 12,713
Subordinated debt Raiffeisenlandesbank Oberösterreich 13,691 13,691
Due to banks Raiffeisen Leasing d.o.o. Sarajevo 2,068 11,952
Due to banks Raiffeisen Brokers d.o.o. Sarajevo 50 173
Due to banks Raiffeisen S.A.C d.o.o. Sarajevo 899 812
Due to banks Raiffeisen International Bank Holding AG - 80
Total liabilities: 127,596 331,126
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108
Financial Statements
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
2010 2009
Interest and similar income Raiffeisen Zentralbank Österreich AG 571 1,011
Interest and similar income Raiffeisen Brokers d.o.o. Sarajevo 29 39
Interest and similar income Raiffeisen Leasing d.o.o. Sarajevo 5 7
Interest and similar income Raiffeisen S.A.C d.o.o. Sarajevo 72 60
Fee and commission income Raiffeisen Brokers d.o.o. Sarajevo 17 21
Fee and commission income Raiffeisen Leasing d.o.o. Sarajevo 57 67
Fee and commission income Raiffeisen Zentralbank Österreich AG 92 199
Income from rent Raiffeisen Leasing d.o.o. Sarajevo 179 73
Other income Raiffeisen Brokers d.o.o. Sarajevo 4 3
Other income Raiffeisen S.A.C d.o.o. Sarajevo - 1
Total income: 1,026 1,481
Interest and similar expense Raiffeisen Zentralbank Österreich AG 4,736 16,980
Interest and similar expense Raiffeisen S.A.C. d.o.o. Sarajevo 12 2
Interest and similar expense Leasing d.o.o. Sarajevo 33 892
Fee and commission expense Raiffeisen Zentralbank Österreich AG 119 47
Fee and commission expense Raiffeisen International Bank Holding AG 1,172 1,116
Consulting expenses Raiffeisen International Bank Holding AG 2,328 2,219
Other expenses Raiffeisen International Bank Holding AG 1,139 1,525
Other expenses Raiffeisen Trening Centar d.o.o. Zagreb 253 155
Other expenses Leasing d.o.o. Sarajevo 497 458
Other expenses Raiffeisen S.A.C d.o.o. Sarajevo 152 179
Other expenses Raiffeisen Zentralbank Österreich AG 74 17
Total expenses: 10,515 23,590
A number of banking transactions are entered into with related parties in the normal course of business. These transactions
were carried out on commercial terms and conditions and at market rates.
The remuneration of directors and other members of key management were as follows:
31 December 2010 31 December 2009
Compensations for directors and other key management 4,264 4,942
Taxes and contributions on Compensations 2,728 3,209
Bonuses – accrued expenses 637 556
Taxes on bonuses – accrued expenses 458 401
Total 8,087 9,108
www.raiffeisenbank.ba

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
34. ESTIMATED FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Financial Statements
Fair value of financial instruments is the amount for which an asset could be exchanged, or a liability settled, between
knowledgeable, willing parties in an arm’s-length transaction. If available, the fair value is based on quoted market
prices. However, no readily available market prices exist for a significant portion of the Bank’s financial instruments. In
circumstances where the quoted market prices are not readily available, the fair value is estimated using discounted cash
flow models or other pricing techniques as appropriate. Changes in underlying assumptions, including discount rates
and estimated future cash flows, significantly affect the estimates. Therefore, the calculated fair market estimates may not
be realisable in a current sale of the financial instrument.
It is the opinion of the Management of the Bank that the fair value of the Bank financial assets and liabilities are not materially
different from the amounts stated in the balance sheets as at 31 December 2010 and 31 December 2009. In estimating
the fair value of the Bank’s financial instruments, the following methods and assumptions were used.
The fair values of financial assets and financial liabilities are determined as follows:
• The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active
liquid markets are determined with reference to quoted market prices.
• The fair values of other financial assets and financial liabilities are determined in accordance with generally accepted
pricing models based on a discounted cash flow analysis using prices from observable current market
transactions and dealer quotes for similar instruments.
Analyses of financial instruments that are measured subsequent to initial recognition at fair value are grouped into Levels
1 to 3 as follows:
• Level 1 – fair value measurements for those derived from quoted prices in active market;
• Level 2 – fair value measurements for those derived from inputs other then quoted prices included in level 1;
• Level 3 – fair value measurements for those derived from valuation techniques that are not based on observable
market data.
As of 31 December 2010 and 2009, respectively, the Bank’s financial instruments related to Level 1 such amounting to:
31 December 2010 31 December 2009
Securities available for sale 2,241 2,558
Securities at fair value through profit and loss 1,664 1,852
Bonds at fair value through profit and loss 163,120 118,781
167,025 123,191
The Bank has no level 2 and 3 financial instruments as of 31 December 2010 and 2009, respectively.
For loans and receivables, as described in Note 4, the Bank assessed indicators for impairment by applying the loss percentages
to aged loans, grouped by the number of days overdue as defined by FBA.
www.raiffeisenbank.ba 109

110
Financial Statements
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
35. MANAGED FUNDS
The Bank manages assets on behalf of third parties. These assets are recorded separately from the Bank’s assets. For its
services, the Bank charges a fee amounting to 1% of the total amount contributed.
Liabilities
The Bank has not issued any guarantees related to managed funds.
www.raiffeisenbank.ba
31 December 2010 31 December 2009
Citizens 2,041 2,118
Government 5,852 4,340
Companies 4,892 4,582
Other 122 693
Total
Assets
12,907 11,733
Loans to companies 5,613 6,302
Loans to citizens 7,294 5,431
Total 12,907 11,733

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
36. FOREIGN CURRENCY RISK
Financial Statements
The Bank is exposed to foreign currency risk due to cash flows denominated in foreign currencies that differ from the base
currency used by the Bank when there is no matching between assets and liabilities denominated in the foreign currency.
Portfolio exposure to foreign currency risk arises from portfolio sensitivity to fluctuations in exchange rate levels. The degree
of foreign currency risk depends on the amount of open positions and the degree of potential change in foreign currency
rates.
The bank used some FX derivative instruments during 2010. In 2010 the bank entered into 2 currency forward contracts
and realized gain of KM 1 thousand. Net effect was recognized in statement of income.
The carrying amounts of the Bank’s foreign currency denominated monetary assets and liabilities at the reporting date
are as follows:
Assets
KM ’000
Liabilities
KM ’000
2010 2009 2010 2009
EUR 465,407 944,901 1,940,450 2,434,960
USD 129,625 122,079 130,511 120,398
Other currencies 53,183 43,699 51,678 441,916
Foreign currency sensitivity analysis
The Bank is not exposed to foreign currency risk related to EUR due to the fact that Convertible Mark is pegged to EURO
(1 EUR = KM 1.955830). Exposure is more prominent for USD and CHF. The following table outlines the Value-at-Risk
(VaR). VaR is a calculation based on 99% reliability under which the Bank’s portfolio denominated in foreign currencies
can be changed in a 10-day period due to changes in foreign currency exchange rates, as well as daily changes over the
last 250 days of trading.
Currency VaR KM ’000
USD 7
CHF 5
HRK 3
SEK 1
GBP 1
The following table details the Bank’s sensitivity to a 10% increase or decrease in foreign currency rates against the relevant
local currencies. The sensitivity rate of 10% is used when reporting foreign currency risk internally to key management
personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates.
USD Effect
(KM '000)
CHF Effect
(KM '000)
2010 2009 2010 2009
Profit or Loss 23 229 (88) (234)
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112
Financial Statements
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
The analysis outlined above is used on open foreign currency position of the Bank, which includes all asset and liability
items.
If the currency position of a foreign currency is “long” (assets exceeding liabilities) and the exchange rate for this currency
increases in relation to the KM, the Bank will experience a foreign exchange gain.
If the currency position of a foreign currency is “long” (assets exceeding liabilities) and the exchange rate for this currency
decreases in relation to the KM, the Bank will experience a foreign exchange loss.
If the currency position of a foreign currency is “short” (liabilities exceeding assets) and the exchange rate for this currency
increases in relation to KM, the Bank will experience a foreign exchange loss.
If the currency position of a foreign currency is “short” (liabilities exceeding assets) and the exchange rate for this currency
decreases in relation to KM, the Bank will experience a foreign exchange gain.
The Bank takes on exposure to effects of fluctuations in the prevailing foreign currency exchange rates on its financial position
and cash flows. The table below provides an analysis of the Bank’s main currency exposures. The remaining currencies
are shown within ’Other currencies.’ The Bank monitors its foreign exchange (FX) position for compliance with the
regulatory requirements of the Federal Banking Agency established in respect of limits on open positions. The Bank seeks
to match assets and liabilities denominated in foreign currencies to avoid foreign currency exposures.
’000 KM KM EUR USD
www.raiffeisenbank.ba
Other
currencies
ASSETS
Cash and cash equivalents 365,104 42,928 6,818 20,114 434,964
Obligatory reserve with the Central Bank 305,865 - - - 305,865
Placements with other banks - 162,589 73,996 13,697 250,282
Loans and receivables 2,210,261 13,556 1 19,372 2,243,190
Securities available for sale 2,118 123 - - 2,241
Securities at fair value through profit and loss 1,664 - - - 1,664
Investments in subsidiaries 2,288 - - - 2,288
Investments in associates 8,173 - - - 8,173
Bonds at fair value through profit and loss - 159,278 3,842 - 163,120
Bonds held to maturity 5,507 86,933 44,968 - 137,408
Total assets (1)
LIABILITIES
2,900,980 465,407 129,625 53,183 3,549,195
Due to banks 9,809 560,715 - 17,626 588,150
Due to customers 1,160,423 1,297,719 130,511 34,052 2,622,705
Subordinated debt - 82,016 - - 82,016
Total liabilities (2) 1,170,232 1,940,450 130,511 51,678 3,292,871
Total assets 2009 2,920,348 944,900 122,079 43,699 4,031,026
Total liabilities 2009 1,181,728 2,434,959 120,398 41,916 3,779,001
Total

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
37. INTEREST RATE RISK
Financial Statements
Interest rate risk reflects the possibility of loss of profit and/or erosion of capital due to a change in interest rates. It relates
to all products and balances that are sensitive to changes in interest rates. This risk comprises two components: income
component and investment component.
The income component arises from a lack of harmonization between the active and passive interest rates of the Bank (interest
on placements is fixed, interest for liabilities is variable, and vice versa).
The investment component is a consequence of the inverted relationship between price and interest rate fluctuations of
securities.
The Bank strives to protect itself from interest rate risk by harmonizing the type of interest rate (fixed and variable), currency,
related interest rate and the date of interest rate change for all products for which it concludes contracts (which are
sensitive to interest rate changes). Any incongruity among the abovementioned elements results in exposure of the Bank
to interest rate risk.
GAP interest rate sensitivity analysis
The aforementioned analysis enables the calculation of the Basis Point Value (value of gain or loss on a particular portfolio
arising from a change in interest rate values by +50 Base Points with a parallel displacement of the curve).
31 December 2010
In the instance of a change (increase) of interest rates by 50 Basis Points the Bank would realize loss for EUR in the amount
of KM 3,576 thousand.
For USD, in the instance of a change (increase) of interest rates by 50 Basis Points the Bank would realize gain the Bank
would realise loss of KM 510 thousand.
For other currencies there are no significant amounts.
31 December 2009
In the instance of a change (increase) of interest rates by 50 Basis Points the Bank would realize loss for EUR in the amount
of KM 427 thousand.
For USD, in the instance of a change (increase) of interest rates by 50 Basis Points the Bank would realize gain the Bank
would realise loss of KM 714 thousand.
For other currencies there are no significant amounts.
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114
Financial Statements
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
38. LIQUIDITY RISK
The ultimate responsibility for liquidity risk management lies with the Board of Directors, which has created an adequate
framework for the management of liquidity risk to be used for the management of long-, mid- and short-term needs for
the management of the Bank’s liquidity. The Bank manages this type of risk by maintaining adequate reserves, loans
from other banks and other sources of financing, by constantly monitoring the projected and actual cash flows and by
comparing maturity profiles of financial assets and liabilities.
Liquidity and interest risk tables
The following tables detail the Bank’s remaining contractual maturity for its non-derivative financial liabilities. The tables
have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
Bank can be required to pay. The table includes both interest and principal cash flows.
www.raiffeisenbank.ba
Weighted
average
effective
interest rate
Less than
1 month
1-3
months
3 months
to
1 year
1-5 years
5+
years
% KM KM KM KM KM KM
31 December 2010
Non-interest bearing - 1,429,434 - 10 17 67 1,429,528
Variable interest rate
instruments
4.77 5,120 18,338 165,999 485,773 54,791 730,021
Fixed interest rate
instruments
4.21 64,039 110,046 442,188 622,105 34,437 1,272,815
31 December 2009
Total
1,498,593 128,384 608,197 1,107,895 89,295 3,432,364
Non-interest bearing - 1,294,807 928 274 237 54 1,296,300
Variable interest rate
instruments
4.77 5,230 39,505 345,400 572,604 161,801 1,124,540
Fixed interest rate
instruments
4.87 76,387 184,452 675,343 694,884 27,296 1,658,362
1,376,424 224,885 1,021,017 1,267,725 189,151 4,079,202

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Financial Statements
The following tables detail the Bank’s remaining contractual maturity for its undiscounted financial assets. The tables
have been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will
be earned on those assets except where the Bank anticipates that the cash flow will occur in a different period.
Weighted
average
effective
interest rate
Less than
1 month
1-3
months
3 months
to
1 year
1-5 years
5+
years
% KM KM KM KM KM KM
31 December 2010
Non-interest bearing - 436,628 - - - - 436,628
Variable interest rate
instruments
11.24 115,541 224,116 787,094 1,221,546 312,605 2,660,902
Fixed interest rate
instruments
0.55 561,514 5,990 73,380 317,716 527 959,127
31 December 2009
The Bank has access to sources of financing with total unused amount of KM 76,277 thousand at the balance sheet date.
The Bank expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets. The
Bank expects to maintain its debt to capital ratio.
The adequacy of capital and its use is monitored by the Board of Directors using techniques based on the Decisions of
the Banking Agency of the Federation of Bosnia and Herzegovina (“the Regulator”). Information is supplied to the Regulator
on a quarterly basis. The Regulator places the following demands on all banks:
1. Minimum ownership capital of KM 15,000 million.
2. Maintaining a capital to risk assets ratio (“Basel Indicator”) at the legally required minimum of 12%. As of 31 December
2010 the adequacy of the Bank’s capital amounts to 14.7% (2009: 14.3%).
Total
1,113,683 230,106 860,474 1,539,262 313,132 4,056,657
Non-interest bearing - 179,737 - - - - 179,737
Variable interest rate
instruments
10.86 42,018 92,862 467,275 1,497,125 488,175 2,587,455
Fixed interest rate
instruments
0.58 1,270,129 45,078 74,435 233,291 - 1,622,933
1,491,884 137,940 541,710 1,730,416 488,175 4,390,125
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116
Financial Statements
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
39. CREDIT RISK
The Bank takes on exposure to credit risk which is the risk upon credit approval and when counterparty will be unable to
pay amounts in full when due. The Bank structures the levels of credit risk it undertakes by placing limits on the amount
of risk accepted in relation to one borrower, or groups of borrowers, and to industry segments. Such risks are monitored
on a revolving basis and subject to an annual or more frequent review.
Exposure to credit risk is managed through regular analysis of the ability of borrowers and potential borrowers to meet
interest and capital repayment obligations and by changing these lending limits where appropriate. Exposure to credit risk
is also managed in part by obtaining collateral and corporate and personal guarantees.
Commitments arising from the issuance of letters of credit. Documentary letters of credit, which are written irrevocable
undertakings by the Bank on behalf of a customer (mandatory) authorising a third party (beneficiary) to draw drafts on
the Bank up to a stipulated amount under specific terms and conditions, are collateralised by the underlying shipments
of goods to which they relate and therefore have significantly less risk. Cash requirements under open letters of credit are
considerably less than the commitments under issued guarantees or stand-by letters of credit. However, the Bank records
provisions against these instruments on the same basis as is applicable to loans.
Commitments to extend credit, undrawn loan commitments, unutilised overdrafts and approved overdraft loans. The primary
purpose of commitments to extend credit is to ensure that funds are available to a customer as required. Commitments
to extend credit represent unused portions of authorisations to extend credits in the form of loans, guarantees or
stand-by letters of credit. Commitments to extend credit issued by the Bank represent issued loan commitments or guarantees,
undrawn portions of and approved overdraft loans. Commitments to extend credit or guarantees issued by the
Bank which are contingent upon customers maintaining specific credit standards (including the condition that a customer’s
solvency does not deteriorate) are revocable commitments. Irrevocable commitments represent undrawn portions of authorised
loans and approved overdraft facilities because they result from contractual terms and conditions in the credit
agreements.
These financial statements are prepared in accordance to IFRS requirements as modified by the regulatory requirements
of Federal Banking Agency. The credit risk presentation as of 31 December 2010 and 2009, respectively, includes measurement
of impairment loss as well as disclosure in accordance with stated modifications.
Loans and receivables:
31 December 2010
www.raiffeisenbank.ba
Total gross
carrying
amount
Unimpaired
assets
Individually
impaired
assets
(total
carrying
amount)
Provisions
Total net
carrying amount
Placements, Central Bank,
current accounts and other assets
933,093 933,093 - (77) 933,016
Public sector loans 48,511 48,484 27 - 48,511
Corporate – large clients 874,568 768,644 105,924 (57,170) 817,426
Corporate – SMEs 202,720 167,422 35,298 (14,202) 188,518
Retail – individuals 1,150,858 1,137,726 13,131 (48,253) 1,102,604
Retail – micro enterprises 101,342 97,571 3,771 (7,375) 93,967
TOTAL 3,311,092 3,152,940 158,151 (127,077) 3,184,042

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Loans and receivables (continued):
31 December 2009
Total gross
carrying
amount
Unimpaired
assets
Individually
impaired
assets
(total
carrying
amount)
Provisions
Financial Statements
Total net
carrying amount
Placements, Central Bank,
current accounts and other assets
1,162,646 1,162,646 - (34) 1,162,612
Public sector loans 20,466 20,412 53 - 20,466
Corporate – large clients 895,983 338,044 557,939 (57,887) 838,096
Corporate – SMEs 175,353 101,719 73,634 (5,540) 169,813
Retail – individuals 1,249,170 1,232,475 16,696 (49,057) 1,200,113
Retail – micro enterprises 100,298 98,075 2,223 (5,835) 94,463
TOTAL 3,603,916 2,953,371 650,545 (118,353) 3,485,563
Credit exposure and collateral
The Bank estimates the fair value of collateral based on recoverable amount of collateral in case that collateral needs to
be liquidated under the current market conditions. Different types of collateral bear different levels of risks for the Bank.
31 December 2010 Net exposure
Maximal credit risk exposure
Commitments /
guarantees issued
Estimated fair
value of collateral
Reselling /
repledging
allowed
Placements, Central Bank, current accounts and
other assets
933,016 23,851 -
Public sector loans 48,511 52,991 1,557
Corporate – large clients 817,426 542,740 1,048,325
Corporate – SMEs 188,518 107,359 209,151
Retail – individuals 1,102,604 130,552 157,671
Retail – micro SME 93,967 41,272 43,692
Subtotal 3,184,042 898,765 1,460,396
Assets at fair value through profit and loss 1,664 - -
Assets available for sale 2,241 - -
Investments in associates 8,173 - -
Bonds at fair value through profit and loss 163,120 - -
Bonds held to maturity 137,408 - -
Other assets 15,373 - -
Subtotal 327,979 - -
TOTAL 3,512,021 898,765 1,460,396
www.raiffeisenbank.ba 117

118
Financial Statements
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Credit exposure and collateral (continued):
31 December 2009 Net exposure
www.raiffeisenbank.ba
Maximal credit risk exposure
Commitments /
guarantees issued
Fair value
of collateral
Reselling /
repledging
allowed
Placements, Central Bank, current accounts and
other assets
1,162,646 11,971 -
Public sector loans 20,466 552 2,785
Corporate – large clients 884,367 577,604 933,334
Corporate – SMEs 163,448 96,050 169,119
Retail – individuals 1,225,508 134,832 188,708
Retail – micro SME 96,209 45,591 34,925
Subtotal 3,552,644 866,510 1,328,871
Assets at fair value through profit and loss 1,852 - -
Assets available for sale 2,558 - -
Investments in associates 3,380 - -
Bonds at fair value through profit and loss 118,781 - -
Bonds held to maturity 104,965 - -
Other assets 11,828 - -
Subtotal 243,364 - -
TOTAL 3,796,008 866,510 1,328,871

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Value impairment and maturity delays:
31 December 2010 Matured 30 days 31-90 days
Placements, Central Bank,
current accounts and other
assets
91-180
days
181-365
days
Net carrying
value of
impaired assets
Provisions for
losses for
financial
assets
Collateral for
individually
impaired assets
Financial Statements
Interest
income for
individually
impaired
assets
933,093 - - - - 77 - - -
Public sector loans 45,741 2,743 - - - 27 - - -
Corporate 375,412 463,137 104,385 1,528 5 212,566 78,747 63,106 372,636
Retail 1,130,718 1,147 2,274 3,588 - 72,530 48,253 662 172,712
TOTAL 2,484,964 467,027 106,659 5,116 5 285,200 127,000 63,768 545,348
Matured 30 days 31-90 days
91-180
days
181-365
days
Net carrying
value of
individually
impaired assets
Valuation
gain / loss
Calculated
value before
valuation
changes
Current
interest
income from
individually
impaired
assets
Assets at fair value through
profit and loss
1,664 - - - - - - - -
Assets available for sale 2,241 - - - - - - - -
Investments in associates 8,173 - - - - - - - -
Bonds at fair value through
profit and loss
163,120 - - - - - - - -
Bonds held to maturity 137,408 - - - - - - - -
TOTAL 312,606 - - - - - - - -
www.raiffeisenbank.ba 119

Financial Statements
120
Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
Value impairment and maturity delays (continued):
31 December 2009 Matured 30 days 31-90 days
Placements, Central Bank,
current accounts and other
assets
www.raiffeisenbank.ba
91-180
days
181-365
days
Net carrying
value of
impaired assets
Provisions for
losses for
financial
assets
Collateral for
individually
impaired assets
Interest
income for
individually
impaired
assets
1,162,646 - - - - - - - -
Public sector loans 20,367 45 - - - 53 - 2,794 -
Corporate 504,430 22,572 8,239 2,597 - 619,483 69,261 941,485 33,653
Retail 974,689 187,193 54,551 16,041 - 632 49,057 196,871 1,541
TOTAL 2,662,132 209,810 62,790 18,638 - 620,168 118,319 1,141,150 35,194
Matured 30 days 31-90 days
91-180
days
181-365
days
Net carrying
value of
individually
impaired assets
Valuation
gain / loss
Calculated
value before
valuation
changes
Current
interest
income from
individually
impaired
assets
Assets at fair value through
profit and loss
1,852 - - - - - - - -
Assets available for sale 2,558 - - - - - - - -
Investments in associates 3,380 - - - - - - - -
Bonds at fair value through
profit and loss
118,781 - - - - - - - -
Bonds held to maturity 104,965 - - - - - - - -
TOTAL 231,536 - - - - - - - -

Notes to the unconsolidated financial statements
for the year ended 31 December 2010
(all amounts are expressed in thousands of KM)
40. BASIC EARNINGS PER SHARE
Financial Statements
Basic earnings per share is calculated by dividing the net profit attributable to ordinary shareholders by weighted average
number of ordinary shares in issue during the year, excluding the average number of ordinary shares purchased by
the Bank and held as treasury shares. For the purpose of calculating basic earnings per share, preferred shares are considered
as ordinary shares as they do not bear preferential dividend right.
Diluted earnings per share are not presented, as the Bank has not issued dilutive or and dilutive equity instruments.
41. APPROVAL OF THE FINANCIAL STATEMENTS
These separate unconsolidated financial statements were approved by the Management Board on 31 January 2011.
Signed on behalf of the Management Board:
2010 2009
Income attributable to ordinary shareholders (KM ’000) 5,872 8,364
Weighted average number of regular shares outstanding 949,552 949,552
Basic earnings per share (KM) 6.18 8.81
President of the Management Board Director of the Finance Department
Michael Mueller Mar ko Jur je vi}
www.raiffeisenbank.ba 121

Editor: Raiffeisen BANK d.d. Bosna i Hercegovina
Design & graphics: McCann-Erickson Sarajevo
Photos: Zijad Gafi}
The pieces of information for the text about Sarajevo were derived from the Tourist and Historical Guide by
Majo Dizdar, published by Sejtarija, Sarajevo 2005.