Letno poročilo 2009.pdf - UniCredit Banka Slovenija dd

On the other hand, we also wish to use surplus financial resourcesto offer “tailor-made” investment plans to our customers, whichwill bring minimal risk with the expected revenue. An optimalcombination of investments in fixed term and structured deposits, inPioneer Investment funds, ERGO investment life insurance policiesand, not least, in asset management, should satisfy even the mostdemanding expectations of our customers.In the coming year, we plan to strengthen our alternative saleschannels, while intensely preparing for a new wave of sales networkexpansion across Slovenia.Corporate BankingGENERAL OVERVIEWA less favourable macroeconomic environment coupled with negativeeconomic growth of approximately 7.8 % in 2009 left a mark on theeconomy as a whole. The banking segment was also equally affectedby these developments.In the first quarter of 2009, the financial crisis reached its peak indeveloped economies. It was accompanied by increasingly difficultconditions in the real sector and by pessimism and anxiety in regardto future prospects among companies. On the Slovenian bankingmarket, such conditions made it impossible for banks to ensure anormal refinancing process, which was perceived by the economyas the credit crunch. The banking sector tightened the criteria forcredit business approval. The trend of increasing interest ratescontinued and at the same time the banks required better qualityof collateral for renewing existing businesses. Interest revenuescontinued to gain importance compared to non-interest revenues.As a consequence of numerous measures adopted by the centralmonetary authorities with the purpose of increasing liquidity andthe individual economic superpowers taking action with fiscalinstruments, the second half of 2009 brought the beginning ofan improvement of the conditions. The beginning of the recoveryprocess of the real sector was greeted with optimism by the financialmarkets. The conditions on the inter-bank market also started toimprove. Due to the lack of good projects on the market and thebanks being risk averse, there was no growth of volume of loans toeconomy. The unsuitable structures of financing companies of thepast have pushed the banks into a position where reprogrammingthe existing short-term financial obligations of clients tookprecedence.The absence of an interest differential and the increased volatility ofthe EUR/CHF exchange rate reduced the appeal of borrowing in Swissfrancs. The whole year 2009 was characterized by the lowest level ofinterest rates compared to historical levels.Despite very adverse conditions, the Bank once again achieved goodcorporate banking results in 2009 and once again exceeded set goalsfrom a revenue point of view. Revenue was 4 % above the plan and12.3 % above last year's results. The revenue growth in the area oflarge Slovenian companies was as high as 37 %. Therefore, the Bankwas capable of maintaining its market position, which representsa great success given the circumstances and the Bank's moreconservative credit risk policy (increased provisions).SEGMENTS AND PRODUCTSThe Bank’s overall market share in the corporate loans segmentremained mostly unchanged. This is to a large extent a result ofthe Bank’s conservative approach, which forms the foundation forcomprehensive assessment of companies’ credit ratings. As a result,we declined many transactions because of the risk involved, whichwas not aligned with our business policy. In the future, we willstrive to meet the expectations of companies; however, we will onlyparticipate in businesses with an adequate level of balance betweenrisk and return.In 2009, a volume of the Bank’s liabilities towards corporations was4 % higher than in 2008. The increase in volumes of deposits washighest in the segments of real-estate and project financing, wherethe Bank achieved 162 % growth compared to the previous year andin the segment of medium-sized companies with 45 % growth rate.The volume of loans to legal entities decreased by 3 % compared tothe previous year. The only segment where we achieved growth is thesegment of medium-sized companies, which experienced 9 % growthcompared to 2008.The volume of foreign payment transactions in the segment ofelectronic payment orders rose by 6 %, while the volume of domesticpayment transactions in the same segment rose by 8 %. Revenuesfrom payment transactions services decreased by 14 % in 2009,compared to the previous year.Due to difficult and unpredictable circumstances in the financialmarkets, in 2009 there was a shift of companies’ focus back to theircore business. Our clients were consequently less inclined towardsderivative financial instruments of protection against currency,commodity, and interest risk. However, the Bank managed toexceed its plans in this area in terms of revenues and successfullystrengthened its market leader position.The Bank continued building its expertise about products andservices in the challenging and complex area of project financing andis already establishing itself as one of the major players in this marketsegment.UniCredit Bank · 2009 Annual Report 143