S T O P A N S K A B A N K A AD S K O P J E DECISION on approval of the Annual Account and Annual Financial Statements of Stopanska Banka AD - Skopje for the year ended 31 December 2017 Skopje, May 2018
On the basis of Articles 26 of the Statute of Stopanska Banka AD - Skopje (A.D. No 339/15.12.2016, revised text) the Shareholders Assembly of Stopanska Banka AD - Skopje on the meeting held on 05.2018, passed a DECISION on approval of the Annual Account and Annual Financial Statements of Stopanska Banka AD - Skopje for the year ended 31 December 2017 1. The Annual Account and Annual Financial Statements of Stopanska Banka AD - Skopje for the year 2017, is hereby approved as follows: - Total assets 86,351,176 - Total liabilities and equity 86,351,176 - Total revenue 6,147,021 - Total expense 3,863,289 - Income before taxation 2,283,732 2. The structure of total assets and total liabilities as at December 31 st, 2017 is determined as follows: A S S E T S - Cash and cash equivalents 17,901,316 - Trading financial assets 3,676 - Placement with, and loans to, banks 159,539 - Loans to customers 60,657,198 - Investments in securities 6,230,521 - Intangible assets 104,663 - Property and equipment 907,473 - Other receivables 386,790 TOTAL ASSETS 86,351,176 LIABILITIES & EQUITY - Deposits from banks 82,470 - Deposits from customers 70,880,438 - Loans payable 409,410 - Other liabilities 1,345,079 - Share capital 3,511,242 - Reserves 1,031,493 - Retained earnings 9,091,044 TOTAL LIABILITIES AND EQUITY 86,351,176
3. The structure of total income and total expenses, in accordance with the figures in Item 1 of this Decision, is determined as follows: A. Total revenues 6,147,021 - Interest income 4,430,735 - Fee and commission income 1,076,297 - Trading (expense)/income, net 1,426 - Foreign exchange gains, net 107,673 - Other revenues 530,890 B. Total expenses 3,863,289 - Interest expense 753,373 - Fee and commission expense 94,462 - Impairment losses, net 932,144 - Staff expenses 801,066 - Other expenses 1,282,244 4. Realized income before taxation in 2017 is determined in the amount of 2,283,732 thousand denars. Realized income before taxation is distributed as follows: - Income tax 239,612 - Not distributed income 2,044,120 5. The not distributed income will be distributed with separate Decision for distribution of income for the year 2017. 6. The Annual Financial Statements - Balance Sheet and Income Statement for the year 2017 are integral part of this Decision. 7. This Decision shall enter into force on the day it is passed. A.D. No..05.2018 Skopje SHAREHOLDERS ASSEMBLY Chairman,
EXPLANATORY NOTE The financial statements of Stopanska Banka AD Skopje for the year 2017 are prepared in compliance with the Methodology for recording and valuating the accounting items and for preparing the financial statements (hereinafter referred to as Methodology ), prescribed by the Central Bank and which is implemented as of 1 January 2011. The structure of assets, liabilities and equity, as well as of revenues and expenses is as follows: I. The Balance Sheet Total assets at the level of the Bank amount to 86,351,176 thousand denars. According to the share of each of the categories in total assets, the positions are as follows: - Cash and cash equivalents 20,73% - Trading financial assets 0,00% - Placement with, and loans to, banks 0,18% - Loans to customers 70,25% - Investments in securities 7,22% - Intangible assets 0,12% - Property and equipment 1,05% - Other receivables 0,45% According to the share of each of the categories, the structure of liabilities and equity is as follows: - Deposits from banks 0,10% - Deposits from customers 82,08% - Loans payable 0,47% - Other liabilities 1,56% - Share capital 4,07% - Reserves 1,19% - Retained earnings 10,53% The Bank's shareholding capital as of December 31, 2017, without taking in consideration of accumulated earnings in previous years and realized income in current year, is MKD 3,511,242 thousand.
II. Statement of Revenues and Expenses In the fiscal year 2017, the total revenues amount to 6,147,021 thousand denars and the total expenses amount to 3,863,289 thousand denars, resulting in profit before tax in the amount of 2,283,732 thousand denars. Total revenue Participation of each of the categories in the overall revenue structure is as follows: Total expenses - Interest income 72,08% - Fee and commission income 17,51% - Trading (expense)/income, net 0,02% - Foreign exchange gains, net 1,75% - Other revenues 8,64% Participation of each of the categories in the overall expense structure is as follows: - Interest expense 19,50% - Fee and commission expense 2,44% - Impairment losses, net 24,13% - Staff expenses 20,74% - Other expenses 33,19% Income and income distribution In the fiscal year 2017, the Bank realized income before taxation in the amount of 2,283,732 thousand denars. In accordance with the legislation, from the income before taxation, income tax was calculated in the amount of 239,612 thousand denars, Thus, not distributed income that will be distributed with separate Decision for distribution of income for 2017 year amounts to 2,044,120 thousand denars. The Supervisory Board approved the enclosed decision on its 228 th meeting, held on April 27 th, 2018. In view of the above, it is proposed the Shareholders assembly to pass the enclosed Decision. Skopje, May 2018
BALANCE SHEET as at December 31, 2017 (In thousand of MKD) 2017 2016 ASSETS Cash and cash equivalents 17,901,316 17,567,743 Trading financial assets 3,676 2,251 Financial assets at fair value through income statement determined as such at initial recognition - - Derivative assets held for risk management - - Placements with, and loans to banks 159,539 178,315 Loans to customers 60,657,198 58,654,991 Investments in securities 6,230,521 8,351,655 Investments in associates - - Receivables for income tax (current) 6,899 - Other receivables 178,479 147,577 Collateralized assets - - Assets acquired through foreclosure proceedings 201,412 191,936 Intangible assets 104,663 105,630 Property and equipment 907,473 953,242 Deferred tax assets - - Non-current assets held for sale and group for sale - - Total assets 86,351,176 86,153,340 LIABILITIES Trading financial liabilities - - Financial liabilities at fair value through income statement determined as such at initial recognition - - Derivative obligation held for risk management - - Deposits from banks and financial institutions 82,470 1,742,752 Deposits from customers 70,880,438 68,291,877 Issued debt securities - - Loans payable 409,410 557,727 Subordinated debt - - Special reserve and provisions 132,048 173,481 Income tax payable (current) - 61,410 Deferred tax liabilities - - Other liabilities 1,213,031 1,650,795 Liabilities directly related to group of assets for sale - - Total liabilities 72,717,397 72,478,042 EQUITY AND RESERVES Share capital 3,511,242 3,511,242 Share premia - - Registered shares - - Other equity instruments - - Revaluation Reserves 200,120 68,316 Other Reserves 831,373 831,373 Retained earnings 9,091,044 9,264,367 Total equity and reserves 13,633,779 13,675,298 Total liabilities and equity and reserves 86,351,176 86,153,340 Contingent liabilities 14.321.606 13.717.866 Contingent assets - -
INCOME STATEMENT for the period from January 1, 2017 to December 31, 2017 (In thousands of MKD) 2017 2016 Interest income 4,430,735 4,526,636 Interest expense (753,373) (889,519) Net interest income 3,677,362 3,637,117 Fee and commission income 1,076,297 1,052,579 Fee and commission expense (94,462) (100,964) Net fee and commission income 981,835 951,615 Trading (expense)/income, net 1,426 66,350 Trading (expense)/income from other financial instruments, net - - Foreign exchange gains, net 107,673 114,899 Other operating income 530,890 338,654 Share in the profit of associates - - Impairment losses on financial assets, net (932,144) (490,974) Impairment losses on non-financial assets, net (110,306) (154,022) Staff expenses (801,066) (795,313) Depreciation and amortization (136,776) (125,113) Other operating expenses (1,035,162) (1,039,492) Share in the loss of associated companies - - Income before taxation 2,283,732 2,503,721 Income tax (239,612) (263,930) Net profit for the year 2,044,120 2,239,791 Earning per shares Basic earnings per share (in MKD) 117,07 128,28 Diluted earnings per share (in MKD) 117,07 128,28