Sarajevo, 21 December
2017
The ProCredit Bank’s business model transformations allowing further growth and development that have been implemented throughout the Group, and in particular in the countries of the region, are now gaining momentum in Bosnia and Herzegovina. This was pointed out at a New Year’s get-together of members of the Bank’s Management Board and the press held in Sarajevo, today. Moreover, the Bank’s SME loan portfolio increased by 21% until and including November 2017 when compared to the same period last year. The quality of the Bank’s loan portfolio is improving constantly and is now above the market average, an indicator of the Bank’s stability and long-term vision of its business, says the Bank’s press statement.
The members of the ProCredit Bank’s Management Board: Edin Hrnjica, Director, and Executive Directors Amel Agić and Amir Salkanović, stated in their talk with the press that the business model transformation reflected primarily in an investment cycle focused on digitalisation and business operations with small and medium enterprises that would enable growth and development and enhance the quality of the Bank’s loan portfolio. Upon implementation of the same business transformation model, all ProCredit Banks in the region have reported a constant growth in the loan and deposit portfolios.
It was noted that, as a result of the effects of the social responsibility principles, the Bank had agreed to lower interest rate margins in the current year so as to fully accentuate not the net profit but its support to the stable small and medium entrepreneurs who pay taxes to the state and settle all their liabilities in accordance with the law, contributing to the development of the Bosnia and Herzegovina’s economy.
Committed to finding innovative solutions to provide as many opportunities as possible for its customers in taking over the managing of their own finance, ProCredit Bank has created conditions for a stronger development of the private clients’ sector aimed at providing straightforward, safe, fast, and affordable services.
In 2017, an investment was made in the developing of a platform for private individuals, www.procreditbank-direct.com, including, along with the applied innovations, a unique offer of both current and savings accounts, internet banking, debit card, e-mail bank statements, and 20 domestic payments with no fees charged, all at a price of BAM 10 per month. It was also pointed out that ProCredit Bank had opened the first 24/7 self-service area in Bosnia and Herzegovina already in 2015.
ProCredit Bank was also the first bank in Bosnia and Herzegovina to enter the process of digital transformation, continuously seeking to provide its clients with an easier access to its business units. In addition to the machines that enable deposits of coins, an investment was made in a purchase of ATMs that enable customers to deposit or withdraw bills in Euro currency.
To simplify the availability and functionality of banking, we have also invested in the development of mobile banking, including the options of fully independent blocking and unblocking of debit card by users, changing daily card limit, and other options, providing another opportunity for our customers to take over the running of their finance.
The ProCredit Group operating in the countries of Eastern and South Eastern Europe is highly stable. This has been ensured by reputable ProCredit Holding shareholders, such as KfW, IFC, TIAA, DOEN, etc. According to its financial results achieved by Q3 2017, the ProCredit Group continued to grow, its results surpassing its expectations. Consequently, there has been an increase at the Group level in the target segment of loans above EUR 30,000 of 12.9% when compared to the same period last year. The overall portfolio increased by approximately 5.6%, which would have been even higher had the Group not committed itself to a planned reduction of consumer loans (loans in amounts up to EUR 30,000).
The importance of the German-owned capital and stable business of the Group as a whole for PCB BiH was also mentioned. ‘ProCredit Holding is the sole shareholder of our bank which is fully supported by the owners and shareholders in Frankfurt. The additional capitalization in an amount of EUR 2 million proves the Holding’s full support for ProCredit Bank in achieving its goals’, said Amir Salkanović
In 2018, ProCredit Bank will continue investing in improvement of services to increase the SME loan portfolio and facilitate access to the EU funds, making permanent investments in modernising and equipping the 24/7 self-service areas and electronic channels. ‘Further investing in training and development of employees will continue, resulting in a well-developed recruiting system through the ProCredit Entry Programme that represents a basis for employment in our institution, with each employee getting an opportunity to attend English courses and gain additional education and development through one-year banking academy intended for all employees of the Bank, and three-year manager academy in Furth, Germany’, said Amel Agić.
The Bank will also continue to pursue its activities in the promotion of the principles of social responsibility, such as engaging in the implementation of internal environmental measures, and encouraging further investments by customers in environmentally sustainable projects by stimulating interest rates. Additionally, there is the implementation of credit risk standards and high-quality and responsible financial analyses; implementation of the new IFRS 9 standards; providing international guarantee lines to facilitate easier access to finance for innovative enterprises; enhancing regional cooperation in South Eastern and Eastern Europe through setting up of stimulating fees for international inflows and outflows; empowering customers to manage their finance on their own and not depend on the work of financial institutions, and, lastly – something that ProCredit Bank is especially proud of – the financial education in the field of savings and avoiding consumer lending to prevent over-indebtedness of both companies and private clients.
About ProCredit Bank BiH
ProCredit Bank was the first international bank to arrive in Bosnia and Herzegovina, then already war-torn, its economy recovering with difficulty. It was 1997 when the ProCredit Group saw an opportunity for development and sent over its experts who, following an analysis of the then market, offered a solution in the form of a small business financing. Over the years, the Bank has specialized in the small and medium enterprises as the actual generators of the development of economy that operate regularly, settle their liabilities in time, make additional employments, improve the quality of life in the community, export goods, etc. ProCredit Bank today operates with strong, stable and renowned BiH companies.
ProCredit Bank has been making enormous efforts for years to provide for those companies specifically an access to the funds they need to improve their businesses, offering now to its clients an access to credit lines with rather low interest rates and guarantee lines with substantially reduced security coverage requirements. The Bank has offered over a long term financing through credit/guarantee lines funded by the European Union, World Bank, and USAID. Moreover, to stimulate export, ProCredit Bank offers to domestic businesses best prices for international payments, especially for payments to sister-banks within the ProCredit Group, of EUR 2.5 per transaction.
ProCredit Bank BiH is part of the ProCredit Group headquartered in Frankfurt, Germany. ProCredit Holding, the ProCredit Group’s mother company, holds an absolute ownership of the Bank. Shareholders of ProCredit Holding include strategic investors, Zeitinger Invest and ProCredit Staff Invest, and renowned names such as that of DOEN foundation, KfW and IFC (part of Word Bank Group).
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