SC Citadele banka Public financial report for the 1 st quarter of 2013

Transcription

1 1

2 Citadele Continues Growing Steadily in 2013 Citadele continued its upward trajectory in the first quarter of 2013 with significantly better financial results compared to the same period in 2012; strong liquidity ratios and continuing improvements in its cost/income ratio. The bank won further awards in local and international competitions. The same is also the case with IPAS Citadele Asset Management, a subsidiary of Citadele Bank, whose results were notably better during the first quarter than in the same period last year. The bank continues increasing its profits Citadele Bank completed the first quarter of this year with 5.5 million lat profit before tax and impairment charges (group: 6.6 million lats) an increase of 37% (group: 27%) versus the same period in In continuing along its well balanced business strategy, Citadele s net interest income increased from 6.6 million lats in the first quarter of 2012 to 7.8 million lats during the 1 st quarter of 2013 (group performance: from 8.3 million to 9.5 million lats). Citadele Bank s Total Assets amounted to 1.30 billion Lats (1.56 billion Lats for the group) at 31 March 2013, as planned. The bank s loan portfolio was 630 million Lats (group million Lats) and the amount of capital and reserves was 95 million Lats (group million Lats). Total Customer Deposits reached 1.11 billion Lats (group 1.38 billion Lats). Total Customer Deposits with AB Citadele bankas in Lithuania were million lats as of 31 st March In addition, deposits placed with the Swiss AP Anlage and Privatbank, also a member of the Citadele group, increased by 3.9% to million lats. An ever increasing number of new clients choose Citadele Citadele Bank continued developing its three core business directions in 2013: services for retail customers and small and medium enterprises in our branch office network, services for large enterprises and private asset management. More than 5,900 new clients chose Citadele Bank as their partner during the first quarter of 2013 in the Latvian retail segment Citadele acquired over 4,200 new clients; the number of new clients acquired in the SME segment exceeded 1,100, in the corporate services segment - 21 new clients, and it acquired almost 500 new private asset management clients. AB Citadele bankas in Lithuania attracted more than 1,000 new clients, and the Estonian branch attracted more than 120 new clients during the first quarter of Citadele Asset Management significantly increases the amount of assets under management Assets under Management of Citadele's subsidiary IPAS Citadele Asset Management exceeded million lats during the first quarter of this year. This is a significant increase to 2012 when the amount of Assets under Management was million lats. Citadele Asset Management became the investment manager of the Latvian Guarantee Agency (Latvijas Garantiju aģentūra) as a result of successful tender for the agency's business. Citadele Asset Management will manage the Latvian Guarantee Agency s investment portfolio until 2018; the portfolio is worth more than 100 million lats. The market share of the second level pension plan assets managed by Citadele Asset Management has increased from 12.6% as of 31 December 2012 to 13% as of 31 st March

3 In turn, Citadele Life, insurance company in the Citadele Bank group, underwrote 32.1% of the total amount of new premiums linked to investment funds which were underwritten by all Latvian life insurance companies during the first quarter. During this period the market share of Citadele Life grew to 9.7% of the total underwritten premiums in the savings life insurance. Citadele recognized locally and internationally Euromoney, the global finance magazine, recognized Citadele the Best Local Bank in Latvia. Citadele group has received a total of 10 awards from Euromoney. Nine of the awards were acquired for the bank's activity in Latvia: The Best Local Bank, Best for High Net Worth II Individuals (US $10 Million to USD $30 Million), Best for Equity Portfolio Management, Best for Fixed Income Portfolio Management, Best Range of Advisory Services, Best for Foreign Exchange, Best for Commodities Investments, Best for Managed Futures, and Best for Inherited Wealth & Business. Conversely, the bank received award Best for Relationship Management in Lithuania. Citadele's "Concierge services for non-resident clients - integrated with Visa system" received the Customer Prize and the runner-up prize in the "Financial Services Export" category at the "Golden Coin 2013" contest organized by the Latvian Association of Commercial Banks. Likewise, Citadele continues participating in the European Business Award 2012/2013 competition where it was selected as one of the five Latvian companies which were awarded the national champion title thanks to internet voting and the appraisal from the international jury; the bank was also nominated among the 100 best companies in Europe. The final results of the competition will be announced this year. Citadele Citadele Bank wishes to thank its clients, partners and employees for their cooperation and continued support! Citadele will continue developing so that it becomes the most valuable local financial group in the Baltic States, the best partner for its clients, and a dynamic employer which welcomes success and challenges for its employees. The report has been approved by the Management Board of the Bank on 28 May

4 Balance Sheets as at 31 March 2013 and 31 December 2012 LVL 000 s Audited* Audited* Group Group Bank Bank Cash and demand deposits with central banks 240, , , ,708 Demand deposits with credit institutions 62,375 86,301 38,183 64,330 Financial assets held for trading 17,530 11,384 4,030 1,034 Financial assets designated at fair value through profit and loss 40,351 35, Available-for-sale financial assets 263, , , ,308 Loans and receivables to customers: Loans to credit institutions 28,278 42,912 3,838 16,740 Loans to companies and private individuals 716, , , ,804 Held-to-maturity investments 115, , , ,748 Change in the fair value of the portfolio hedged against interest rate risk Prepayments and accrued income 1,713 1, Fixed assets 30,144 31,020 2,032 2,093 Investment property Intangible assets Investments in subsidiaries ,545 44,545 Income tax assets 25,103 25,388 23,574 24,209 Other assets 20,687 23,125 16,109 18,887 Total assets 1,564,266 1,601,424 1,302,420 1,334,895 Due to central banks Demand liabilities to credit institutions 1,862 2,692 11,343 5,122 Financial liabilities held for trading 1,805 2,722 1,946 2,766 Financial liabilities designated at fair value through profit and loss 11,248 10, Financial liabilities measured at amortised cost: Loans from credit institutions 3,096 16,764 22,340 42,236 Deposits from customers 1,376,396 1,395,697 1,113,594 1,132,728 Subordinated liabilities 50,843 52,014 50,843 52,014 Other financial liabilities 5,050 5, Amounts payable under repurchase agreements - 6, Change in the fair value of the portfolio hedged against interest rate risk Accrued expenses and deferred income 8,571 6,418 4,636 4,768 Provisions Income tax liabilities Other liabilities 7,602 8,051 2,718 3,248 Total liabilities 1,466,523 1,506,564 1,207,424 1,242,885 Shareholders equity 97,743 94,860 94,996 92,010 Total liabilities and shareholders equity 1,564,266 1,601,424 1,302,420 1,334,895 Memorandum items Contingent liabilities 33,762 35,625 30,653 32,533 Financial commitments 115, , , ,898 * Auditor: SIA PricewaterhouseCoopers 4

5 Statements of Income for the 3 Month Period Ended 31 March 2013 and 2012 LVL 000 s Restated Restated Group Group Bank Bank Interest income 13,278 15,200 11,117 12,918 Interest expense (3,800) (6,934) (3,367) (6,354) Dividends received Commission and fee income 7,249 6,998 5,372 5,285 Commission and fee expense (1,909) (1,874) (1,630) (1,615) Net gain/ (loss) on financial assets and financial liabilities measured at amortised cost Net gain/ (loss) on available for sale financial assets and financial liabilities 1, Net gain/ (loss) on held for trading financial assets and financial liabilities (186) Net gain/ (loss) on financial assets or financial liabilities designated at fair value though profit and loss (142) Fair value change in the hedge accounting Gain/ (loss) from foreign exchange trading and revaluation of open positions 2,003 2,011 1,694 1,637 Net financial profit 17,513 15,737 13,292 12,031 Net gain/ (loss) on disposal of property, plant and equipment, investment property and intangible assets Other income Other expense (162) (146) (111) (101) Administrative expense (10,322) (10,127) (7,472) (7,733) Amortisation and depreciation charge (1,045) (1,130) (255) (316) Impairment charge and reversals, net (1,697) (2,820) (1,725) (2,724) Profit before tax 4,952 2,422 3,824 1,341 Corporate income tax (564) (144) (658) (324) Profit for the reporting period 4,388 2,278 3,166 1,017 Statements of Comprehensive Income: LVL 000 s Group Group Bank Bank Net change in fair value revaluation reserve of securities and other reserves (1,505) 2,698 (180) 1,700 Other comprehensive income for the period (1,505) 2,698 (180) 1,700 Total comprehensive income for the period 2,883 4,976 2,986 2,717 5

6 Performance Ratios of the Group and the Bank Restated Restated Group Group Bank Bank Return on equity (ROE) (%)* 18.23% 11.39% 13.54% 4.92% Return on assets (ROA) (%)* 1.11% 0.59% 0.96% 0.30% * Average value is calculated as the arithmetic mean of the balance sheet assets or residual capital and reserves at the beginning of the reporting period and at the end of the reporting period. Ratings Assigned by Rating Agencies Long-term rating Short-term rating Financial strength rating Rating s outlook Rating revision date Moody's Investors Service B2 Not Prime E+ Negative Moody's Investors Service Ba3 Not Prime E+ Under Review Moody's Investors Service Ba3 Not Prime E+ Stable Detailed information about ratings can be found on the web site of the rating agency: Investments in Securities by Issuer s Country Group Audited Government bonds Other securities Government bonds Other securities Latvia 162,144 30, ,814 29,215 Lithuania 49, , United States 8,215 21,172 12,493 24,457 Germany 1,692 14,500 2,058 20,012 Russia ,223-10,397 Netherlands 7,476 19,138 7,573 15,764 Other countries* 31,722 74,687 28,527 64,393 Total securities, net 261, , , ,309 Bank Audited Government bonds Other securities Government bonds Other securities Latvia 160,566 26, ,397 25,900 United States 8,215 11,234 12,493 12,474 Germany 1,692 6,806 1,688 10,999 Netherlands 7,476 12,227 7,573 10,236 Other countries* 28,463 47,271 24,672 40,624 Total securities, net 206, , , ,233 * Each country s issuers total exposure is less than 10% from the eligible capital used for capital adequacy calculation purposes. As at the period end the Bank and the Group has not recognized any impairment allowance for held-to-maturity investments (2012: nil). Market value of the total Bank s and Group s held-to-maturity securities as at 31 March

7 is LVL 108,330 thousand (2012: LVL 160,929 thousand) and LVL 119,959 thousand (2012: LVL 166,367 thousand), respectively. During the reporting period the Bank and the Group has released provisions of LVL 69 thousand for available for sale securities (2012: nil); total recognized impairment allowance for available for sale securities as at the period end is LVL 6,581 thousand (2012: LVL 6,629 thousand). Bank s Business Strategy and Objectives Information about Citadele s strategy is available in Business Strategy section of the Bank s web page, about Bank s objectives in Vision, mission, values section. Issued Share Capital as at 31 March 2013 Shareholders Nominal value (LVL) Number of shares Paid-in share capital (LVL) Voting rights VAS Privatizācijas Aģentūra" 1 77,249,999 77,249,999 77,249,999 EBRD 1 25,750,001 25,750,001 25,750,001 Paid-in share capital (%) 75% minus 1 share 25% plus 1 share Total 103,000, ,000, ,000, % Information about Citadele Bank s Organizational Structure As at 31 March 2013 the Bank was operating a total of 21 branches (including 2 foreign branches), 21 mid-size client service centres (including 1 foreign) and 2 representative offices. Information about Citadele's branches and client service centres is available in the Bank's web page's section Klientu apkalpošanas centri un filiāles, about ATM in section Bankomāti. Supervisory Council Management Board Group s Internal Audit Risk and Compliance Sector Legal Sector Operational Sector Human Resources Division Finance and Treasury Sector Corporate Service Sector Retail and SME Service Sector Private Capital Management Sector Business Development and Support Sector Corporate Communication Division Secretariat 7

8 Consolidation Group No. Name of company Registration number Registration address Country of domicile 1 AS Citadele banka" LV Latvia, Riga LV-1010, Republikas laukums 2A LV BNK MAS 2 IPAS Citadele Asset Management" LV Latvia, Riga LV-1010, Republikas laukums 2A LV IPS MS 3 AB Citadele LT Lithuania, Vilnius LT-03107, K. Kalinausko 13 LT BNK MS 4 SIA Citadele Express Kredīts" LV Latvia, Riga LV-1010, Republikas laukums 2A LV CFI MS 5 AS Citadele atklātais pensiju fonds" LV Latvia, Riga LV-1010, Republikas laukums 2A LV PFO MS 6 AAS Citadele Life" LV Latvia, Riga LV-1010, Republikas laukums 2A LV APS MMS 7 OU Citadele Leasing & Factoring" EE Estonia, Tallinn 10119, Roosikrantsi 2 EE LIZ MS 8 OOO Citadele Asset Management Ukraina UA Ukraine, Kiev 03150, Gorkovo 172 UA IBS MMS 9 SIA E & P Baltic Properties" LV Latvia, Riga LV-1010, Republikas laukums 2A LV IPS MMS 10 UAB Citadele faktoringas ir lizingas" LT Lithuania, Vilnius LT03107, K.Kalinausko 13 LT LIZ MMS 11 UAB Citadele investiciju valdymas" LT Lithuania, Vilnius LT01109, Gyneju 16 LT IBS MMS 12 AP Anlage & Privatbank AG CH Switzerland, Limmatquai 4, CH-8001, Zurich CH BNK MS 13 Calenia Investments Limited CY-HE Cyprus, Nicosia 1075, 58 Arch. Makarios III Avenue, Iris Tower, 6th floor, office 602 Company type* % of total paid-in share capital % of total voting rights CY PLS MS 14 SIA Citadele līzings un faktorings" LV Latvia, Riga LV-1010, Republikas laukums 2A LV LIZ MS 15 SIA Rīgas pirmā garāža" LV Latvia, Riga LV-1010, Republikas laukums 2A LV PLS MS 16 SIA RPG interjers" LV Latvia, Riga LV-1010, Republikas laukums 2A LV PLS MMS 17 SIA PR Speciālie projekti" LV Latvia, Riga LV-1010, Republikas laukums 2A LV PLS MMS 18 OOO Citadele Investments Ukraina" UA Ukraine, Kiev 03150, Gorkovo 172 UA IBS MMS 19 SIA Hortus Commercial" LV Latvia, Riga LV-1010, Republikas laukums 2A LV PLS MS 20 SIA Hortus Land" LV Latvia, Riga LV-1010, Republikas laukums 2A LV PLS MS 21 SIA Hortus TC" LV Latvia, Riga LV-1010, Republikas laukums 2A LV PLS MS 22 SIA Hortus Residental" LV Latvia, Riga LV-1010, Republikas laukums 2A LV PLS MS *BNK bank, IBS investment brokerage company, IPS investment management company, PFO pension fund, CFI other financial institution, LIZ leasing company, PLS company providing various support services, APS insurance company. ** MS subsidiary company, MMS subsidiary of the subsidiary company, MAS parent company. Basis for inclusion in the group** 8

9 Management of the Bank as at 31 March 2013 Supervisory Council of the Bank Name Klāvs Vasks Geoffrey Richard Dunn Laurence Philip Adams Baiba Anda Rubesa Aldis Greitāns Position Chairman of the Supervisory Council Deputy chairman of the Supervisory Council Member of the Supervisory Council Member of the Supervisory Council Member of the Supervisory Council Management Board of the Bank Name Guntis Beļavskis Valters Ābele Kaspars Cikmačs Philip Nigel Allard Santa Purgaile Position Chairman of the Management Board, p.p. Member of the Management Board, p.p. Member of the Management Board Member of the Management Board Member of the Management Board There were no changes in the Management of the Bank in the 3 month period ended 31 March

10 Capital Adequacy Ratio as at 31 March 2013 and 31 December 2012 LVL 000 s Audited* Audited* Group Group Bank Bank 1 Equity to be utilised in the capital adequacy ratio 114, , , , Tier 1 capital 103, , , , Tier 2 capital 30,162 40,216 30,162 40, Tier 1 capital and Tier 2 capital deductions (18,811) (28,926) (17,369) (27,455) 1.4 Total Tier 1 capital after deductions 85,689 85,628 87,131 87, Total Tier 2 capital after deductions 28,662 28,662 28,662 28, Applicable Tier 3 capital Total capital charges 85,826 87,481 72,587 73, Credit risk, counterparty credit risk and dilution risk capital charges 70,406 72,019 64,318 65, Settlement risk capital charges Position, foreign currency open position and commodities risk capital charges 5,439 5, Operational risk capital charges 9,981 9,981 7,713 7, Other and transition period capital charges Additional information 3.1 Surplus regulatory equity over total capital charges, excluding other and transition 3.1.a period capital charges 28,525 26,809 43,206 41,782 Capital adequacy ratio, excluding other and transition period capital charges 10.7% 10.5% 12.8% 12.5% 3.2 Surplus regulatory equity over total capital charges 28,525 26,809 43,206 41, a Capital adequacy ratio 10.7% 10.5% 12.8% 12.5% * Auditor: SIA PricewaterhouseCoopers Changes in accounting policies Previously the Group presented penalty fees for non-compliance with contractual terms of loan and deposit agreements as other operating income. Starting from 2012, these have been included as an effective interest rate component and are shown accordingly in interest income and interest expense lines of the income statement. Fee income and expense related to the consulting activities performed by the Group is presented in commission and fee income and commission and fee expense lines of the income statement as opposed to other income and administrative expense previously. All comparative data has been restated accordingly. 10

11 Risk Management Risk management principles are set out in Group s Risk and Capital Management Policy. The Group adheres to the following key risk management principles: The Group aims to ensure low risk exposure, diversified asset portfolio, limited risks in financial markets and low level of operational risk; The Group aims to ensure an acceptable risk level in all operations. Risks are always assessed in relation to the expected return. Risk exposures that are not acceptable for the Group are avoided, limited or hedged; The Group does not assume high or uncontrollable risks irrespective of the return they provide. Risks should be diversified and those risks that are quantifiable should be limited or hedged; The Group pursues prudent risk management policy, that is aligned with the Group business and ensures effective total risk mitigation; Risk management is based on awareness of each and every Group s employee about the nature of transactions he/she carries out and related risks; Risk limit system and strict controls are essential risk management elements. Control of risk level and compliance with limits is ensured by structured risk limit systems for all material risks. Risk management is an essential element of the Group s management process. Risk management within the Group is controlled by independent unit Risk and Compliance Sector. The Group is exposed to the following main risks: credit risk, market risk, interest rate risk, liquidity risk, currency risk and operational risk. The Group has approved risk management policies for each of these risks, which are briefly summarised below. More detailed information about risk management is available in Risk management note of AS Citadele Banka annual report, which is published in the Bank s web page s section Annual reports. Credit Risk Credit risk is the risk that the Group will incur a loss from debtor s non-performance or default. The Group is exposed to credit risk in its lending, investing and trading activities, as well as in respect to the guarantees issued to third parties and other off-balance sheet commitments to third parties. Credit risk management is based on adequate risk assessment and decision-making. For material risks, risk analysis is conducted by independent unit of Risk and Compliance Sector. The analysis of credit risk comprises evaluation of customer s creditworthiness and collateral and its liquidity. The analysis of creditworthiness of a legal entity includes analysis of the industry, the company, and its current and forecasted financial position. The analysis of creditworthiness of an individual includes the analysis of the customer s credit history, income and debt-toincome ratio analysis, as well as the analysis of social and demographic factors. In the event of material risks, lending decision is made by the Credit Committee, and further reviewed by the Bank s Management Board. After the loan is issued, customer s financial position is monitored on a regular basis in order to timely identify potential credit losses. To limit its credit risk, the Group has set the following concentration limits: individual counterparty limit, limit for group of mutually related customers, limit for large risk exposures, limit for the Group s related parties, an industry limit, limit by customer type, loan product, and collateral type. The Group reviews its loan portfolio on a regular basis to assess its quality and concentrations, as well as to evaluate the portfolio trends. Credit risk identification, monitoring and reporting is the responsibility of Risk and Compliance Sector. Market Risk Market risk is the risk that the Group will incur a loss as a result of the mark-to-market revaluation of balance sheet and off-balance sheet items caused by changes in market values of financial instruments due to changes in foreign exchange rates, interest rates and other factors. Position risk of financial instruments is assessed and limits are set by the Financial Market and Counterparty Committee (FMCC). The decisions of FMCC are approved by the Bank s Management Board. Market risk is managed by the Group s business units and subsidiaries which can accept market risk in line with the set limits and investment restrictions of the respective portfolio. Market risk is measured, monitored and risk levels are reported by Risk and Compliance Sector. 11

12 To manage market risk, the Group sets individual limits to issuers and financial instruments, as well as products exposed to market risk. To assess position risk the Group uses sensitivity analysis and scenario analysis, which identifies and quantifies negative impact of adverse events on portfolio of the Group taking into consideration regional, sector and credit rating profile. Interest Rate Risk Interest rate risk is related to the negative impact of interest rate changes on the Group s income and economic value. Interest rate risk management in the Group is carried out in accordance with the Group s Interest rate Risk Management Policy. Interest rate risk is assessed and decisions are made by Assets and Liabilities Management Committee (ALCO). The decisions of ALCO are approved by the Bank s Management Board. ALCO sets the acceptable interest rate risk level and the Group s internal limit system, monitors the compliance with the approved limits and use of the instruments for the management of interest rate risk. Interest rate risk measurement, management and reporting are responsibilities of Treasury Sector. Interest rate risk management in the Group is coordinated by the Risk and Compliance Sector. The Group manages interest rate risk by using the gap analysis of the risk sensitive assets and liabilities, duration analysis and sensitivity analysis of assets and liabilities as well as stress testing of interest rate risk. The Group sets limits for impact of interest rate shock on economic value, net interest income and revaluation reserve. Based on the market analysis and the Group s financing structure, ALCO sets customer deposit interest rates. Liquidity Risk Liquidity risk is the risk that the Group will be unable to meet its legal payment obligations. The purpose of liquidity risk management is to ensure the availability of liquid assets sufficient to meet potential obligations. The Group manages its liquidity risk in accordance with the Group s Liquidity Risk Management Policy. Liquidity risk is assessed and decisions are made by ALCO. The decisions of ALCO are approved by the Bank s Management Board. ALCO sets the acceptable liquidity risk level, the Group s internal limit system and defines instruments for the management of liquidity risk, as well as monitors the compliance with the set limits. Daily liquidity management, as well as control is ensured by the Treasury Sector. Liquidity risk management and reporting in the Group is coordinated by the Risk and Compliance Sector. The Bank evaluates liquidity risk by using scenario analysis. For this purpose several scenarios of Bank s operations under a variety of conditions are developed: gentle crisis (base case scenario), bank's crisis, general market crisis and a combined scenario. The Bank evaluates its liquidity position for each of the scenarios for a variety of periods (ranging from 1 week to 3 months). System of liquidity risk limits and early warning indicators has been implemented in the Bank. The Bank also estimates costs it could suffer under conditions of prolonged liquidity crisis. In addition to scenarios analysis, the Bank also prepares yearly cash flows, which incorporate assumptions about the most likely flows of funds. For general assessment of asset and liability gaps the Bank regularly prepares and analyses liquidity term structure. In the reporting period the Bank was in compliance with liquidity ratio requirements and met mandatory reserve requirements in the Bank of Latvia. Currency Risk Currency risk is a risk of loss arising from fluctuations in currency exchange rates. Currency risk management in the Group is carried out in accordance with the Group s Currency Risk Management Policy. Currency risk is assessed and decisions on limits set are made by the Financial Market and Counterparty Committee (FMCC). The decisions of FMCC are approved by the Bank s Management Board. FMCC defines the acceptable currency risk level and the Group s internal limit system, as well as monitors compliance with these limits. Day-to-day currency risk management is the responsibility of Treasury Sector, while risk monitoring and reporting is the responsibility of Risk and Compliance Sector. The Group has set a limit for open currency positions in each currency at 10% of its equity, and the limit for the total open currency position at 20% of its equity. The limits are in compliance with the requirements of Latvian legislation. In assessing its currency risk the Group also makes use of several widely applied methodologies: value at risk, expected shortfall and scenario analysis. 12

13 Operational Risk The Group defines operational risk as the risk of losses resulting from processes that are deficient or non-compliant with requirements of external and internal regulations, losses resulting from actions of employees and system malfunctioning, as well as losses resulting from actions of third parties or from other external conditions, including legal risk (risk of penalty fees, sanctions applied by external institutions, losses resulting from litigation and other similar events), but excluding strategic risk and reputation risk. The Group further divides operational risk into the following categories: personnel risk, process risk, IT and systems risk, external risk. The Group does not accept operational risks with potential impact exceeding 10% of the Group s net annual revenues and with probability of occurrence at least once per ten years or risks with unquantifiable impact which are unmanageable, irrespective of the financial gains this could bring (i.e., the Group does not perform business activities incurring such operational risks). The Group applies following approaches for operational risk management: Self-assessment of operational risk the business-owners of the products and processes perform identification and evaluation of potential operational risk events, assessment of the existing control systems and the analysis of the required risk mitigation measures using self-assessment questionnaires and brainstorming sessions with the experts of the respective process; Defining operational risk indicators use of statistical, financial and other indicators that reflect the level of various operational risk types and its changes within the Group; Operational risk measurement by recording and analysing operational risk events, the extent of the respective damage incurred, causes and other related information (data base of operational risk losses and incidents); Business continuity planning; Risk assessment within development projects. 13