OREANDA-NEWS. March 27, 2012. The next General Meeting of Shareholders of “Priorbank” JSC held.

Despite difficult macroeconomic conditions caused by a high level of inflation and sudden devaluation of the national currency, Priorbank managed to save its financial capacity and ensure profitable work in 2011, reported the press-centre of Priorbank.  

Considering the capital as the basis for reliable and safe Bank functioning, in 2011 Priorbank increased its capital to 1 673 billion Br or by 75.9%. All capital growth was provided out of the internal sources.

The year of 2011 was not easy for retail business. Devaluation expectations of population resulted in PI’s rouble and foreign deposits outflow in April 2011 and early repayment of parts of foreign currency loans by PIs. Along with that, measures taken by the Bank allowed neutralizing negative impact of devaluation on retail business work. Promotion of pay-roll projects and pension programs enabled the Bank to increase amounts owed by PIs’ in 2011 by 14%. Development of new types of deposits and more attractive offers of foreign currency holding    enabled to reduce by half PI’s foreign deposits outflow by the end of the year.

In spite of growth of interest rates, loans to PIs increased by 10% mainly due to credits in cash and credit cards. In June-August 2011 foreign currency loans refinancing program was successfully implemented. More that 10 thousand of borrowers transferred their debts into Belarusian roubles in the total amount of 26 million USD.

The Bank managed to preserve the quality of loan portfolio in 2011 year.

In 2011 Priorbank completed work on ATMs range renewal (45 ATMs were changed). Volume of money withdrawal from ATMs increased more than in two times. Volume of payments with the use of cards in internet-shops served by the Bank exceeded EUR 1 million in December 2011. Also volume of payments with the use of cards in trade and service reached BYR 198 billion. The number of clients connected to distant electronic banking servicing systems increased during the year and reached 100 thousand.

Bank servicing of corporate clients remained a key direction of the bank activity. In 2011 primary attention was paid to the increase of client base in regions, growth of co-operation with clients and rise of their loyalty. Cash flow management system (Cash Pooling) got further development. It allowed enlarge the funding base of the corporate business by BYR 1,5 trillion or in 2,5 times and increase the amount of active clients to 1 667 (Here is about the Cash Pooling).

In lending, the Bank continued working capital financing and production programs of its corporate customers. As of 1, January 2012 corporate customers lending exceeded BYR 5 trillion, thus increased in 2,6 times. The volume of clients’ financing in terms of factoring increased in 2,5 times. International factoring as an export incentive tool was implemented. Trade finance transactions volumes were extended significantly. In 2011 the total amount of letters of credit opened to clients reached USD 750 million, the volume of bank guarantees – USD 381 million.

The year 2011 was not easy for SME. Taking into account the general stagnation of business of the most SME clients, priorities were put on existing clients’ business support by means of presenting to them new types of services, simplifying procedures and improving quality of service. Pilot version of the Customer Relationship Management program (CRM) was implemented. USSD-bank service for legal bodies and individual entrepreneurs was put into practice.

The result of executed work is the growth of LCY deposits in SME business by 45%, FCY deposits by 10%. Loans to SME increased by 210 billion BYR or by 31%. Conducting of active marketing campaigns and promotion actions on privileged servicing of new clients allowed to attract 2 495 clients additionally.

For the purpose of financing large state enterprises and SME, Priorbank actively attracted funds of Raiffeisen Bank International AG and international financial organizations. In 2011 the Bank attracted from various sources the total of USD 645 million of foreign investments. With participation of its principal shareholder Raiffeisen Bank International AG financing was provided to credit projects of large public enterprises JSC “Naftan”, JSC “Mozyr Oil Refinery”, PA “Belorusneft” to the total amount of USD 605 million.

With the purpose of business processes optimization and client service quality improvement, implementation of project Branch Lean Optimization started in 2011 which enabled to improve personnel work effectiveness and client service quality in Banking Services Centers.
In 2011 branch network development was carried out according to the strategy focused on opening of new outlets in hypermarkets and large trade centers. 10 outlets in Minsk, Brest, Novopolotsk, Rechitsa and Smolevichi were opened. As of 1, January 2012  Priorbank branch network includes 99 structural divisions.

“Performing the tasks set by the General Shareholders’ Meeting Priorbank’s strategy in reporting year was targeted at further development of co-operation with its clients, business processes optimization, improvement of the Bank services quality and their accessibility to the clients. Pursuing the business operational costs harsh saving policy, further improvement of the financial activity have helped to preserve and strengthen the bank's position at the financial market of the country”, – said Sergey Kostyuchenko, Chairman of the Board "Priorbank" JSC.