1. 9 th Interbalkan Forum of Banking Associations Podgorica, May 9 th, 2008

2. Montenegro and Banking Sector in 2007 M. Sc. Econ Nebojsa Djokovic M. Sc. Econ Nebojsa Djokovic Advisor in AMB Email: udruzenjebanaka@cg.yu www.ubcg.info Phone: 00382 20 232 028

3. Podgorica-Montenegro 9 th Interbalkan Forum 2008 CONTENT OF THE PRESENTATION CONTENT OF THE PRESENTATION I Montenegro in brief I Montenegro in brief II Presenting AMB II Presenting AMB III Performance Results of the Banking Sector in 2007 III Performance Results of the Banking Sector in 2007

4. I Montenegro in brief FLAG

5. I Montenegro in brief Montenegro is located in the Western Balkans, bordering Serbia, Croatia, BiH and Albania Montenegro is located in the Western Balkans, bordering Serbia, Croatia, BiH and Albania The country has 293 kilometres of coastline The country has 293 kilometres of coastline Population: 620.145 Population: 620.145 Area: 13.812 km2 Area: 13.812 km2

6. I Montenegro in brief MAP OF MONTENEGRO

7. II Presenting AMB Constituent Assembly-December 7,2000 Constituent Assembly-December 7,2000 The Association members are all banks of Montenegro The Association members are all banks of Montenegro Today we have 11 members Today we have 11 members General Secretary Mr. Mirko Radonjic General Secretary Mr. Mirko Radonjic

8. I Montenegro in brief Economy Since 2002, the national currency is EURO Before that, it was DEM and Yugo. Dinar

9. I Montenegro in brief Economy Description/Period20062007 GDP(in mil. euros) 2.148,902.278,14 Per capita 3.4433.645 GDP growth rate 8,67,0 Living costs-annual rate 2,87,7 Retail prices –annual rate 2,08,0 Number of unemployed (December) 38.87631.469 Unemployment rate 14,73%11,92% Average gross income in EUR 433497 Average net income in EUR 282338 Number of employed people (December) 150.746159.223 Employed people–annual average 150.800156.408

10. I Montenegro in brief Economy The largest foreign investors in the country have been : Russia, Cypress, UK… The largest foreign investors in the country have been : Russia, Cypress, UK… Total in 2007 – 1.007.683.909 euros Out of this amount, investments in companies and banks in 2007 : 377.589.177 euros Sale of property abroad 61.930 euros Sale of property in the country: 514.357.979 euros Inter-company debt: 115.674.822 euros

11. I Montenegro in brief Economy The largest foreign investors: in EUR The largest foreign investors: in EUR Russian Federation (187.388.327) Russian Federation (187.388.327) Cypress (108.994.331) Cypress (108.994.331) Switzerland (75.111.921) Switzerland (75.111.921) UK (70.426.932) UK (70.426.932) Austria (60.765.059) Austria (60.765.059) Serbia (43.009.958) Serbia (43.009.958) USA (41.952.448) USA (41.952.448)

12. II Presenting AMB The Association was founded in Podgorica on 7 th December 2000. The Association was founded in Podgorica on 7 th December 2000. The Association is a non-profit organization established to advance its members business, organize and establish cooperation with local and international partners, advocate and protect common interests of its members before the Central Bank, competent authorities and organizations and international organizations and institutions. The Association is a non-profit organization established to advance its members business, organize and establish cooperation with local and international partners, advocate and protect common interests of its members before the Central Bank, competent authorities and organizations and international organizations and institutions.

13. II Presenting AMB Members : Montenegrobanka NLB Podgorica Montenegrobanka NLB Podgorica Hipotekarna Bank Podgorica Hipotekarna Bank Podgorica Podgoricka Bank SGG Podg. Podgoricka Bank SGG Podg. Montenegrin Commercial Bank OTP Group Podg. Montenegrin Commercial Bank OTP Group Podg. First Bank of Montenegro Niksic First Bank of Montenegro Niksic Atlasmont Bank Podg. Atlasmont Bank Podg. Invest Bank Montenegro Pod. Invest Bank Montenegro Pod. Commercial Bank Budva Commercial Bank Budva Opportunity Bank Pod. Opportunity Bank Pod. First Financial Bank Podgorica First Financial Bank Podgorica Hypo-Alpe –Adria Bank Podgorica Hypo-Alpe –Adria Bank Podgorica

14. II Presenting AMB AMB is member of IBF AMB is member of IBF AMB is associate member of EBF AMB is associate member of EBF AMB has good cooperation with ATTF (Luxemburg) and WIB (Poland) AMB has good cooperation with ATTF (Luxemburg) and WIB (Poland) AMB has own magazine The Banker AMB has own magazine The Banker

15. II Presenting AMB Commissions of the AMB Commission for Prevention of Money Laundering Commission for Prevention of Money Laundering Internal Audit Commission Internal Audit Commission Retail Commission Retail Commission Legal Issues Commission Legal Issues Commission In-land Payment Operations Co. In-land Payment Operations Co. International Transactions Co. International Transactions Co. Comm.for Monetary and Credit Pol. Comm.for Monetary and Credit Pol. Comm.for Standardisation of Banks Procedures Comm.for Standardisation of Banks Procedures Accounting Commission Accounting Commission

16. III Performanse Results of the Banking Sector in 2007 General Data from the Balance Sheet of Banks (in 000 EUR) General Data from the Balance Sheet of Banks (in 000 EUR) Description31.12.200631.12.2007. % Variation Total Assets 1.431.4152.976.363107,9 Total Capital 148.760236.93759,3

17. III Performance Results in the Banking Sector 2007 Ownership structure of total bank capital, end of year, % Ownership structure of total bank capital, end of year, % Description /Period 31 Dec 2006 31 Dec 2007 % Variation State 3 2 -33.3 -33.3 Domestic private capital 18 18 22 22 22.2 22.2 Foreign capital 79 79 76 76 -3.8 -3.8 Total: 100 100

18. III Performance Results of the Banking Sector in 2007 Loans and leasing receivables Loans and leasing receivables Description/Peri od 31 Dec 06 31 Dec 07 % Variation Total loans and receivables in leasing 847.1662.246.614165,2 Corporate loans 474.0581.381.637191,4 Loans to physical persons (including credit cards) 311.175795.035155,5 Other212.314352.79566,2

19. III Performance Results in Banking Sector in 2007 Total bank deposits Total bank deposits Description/ Period 31 Dec 06 31 Dec 07 % Variation Total deposits 1,075,766 2,091,074 94.4 Corporate deposits 364,076 718,929 97.5 Deposits of physical persons 499,376 1,019,350 104.1 Other 212,314 352,795 66.2

20. III Performance Results in Banking Sector in 2007 Financial results of banks in EUR thousands Financial results of banks in EUR thousands Description/Pe riod 20062007 % Variation Profit 9,009 13,912 54.4

21. III Performance Results of the Banking Sector in 2007 Average of available liquid assets and bank payments made, in euro thousands Average of available liquid assets and bank payments made, in euro thousands Description/ Period20062007 Available liquid bank assets 267,724 472,216 Payments made 27,33746,708

22. III Performance of the Banking sector in 2007 Interest rates Interest rates Period2006200620072007 Description/monthNominalRealNominalReal I10.7511.968.959.84 II II10.8912.008.689.50 III III10.8812.048.569.31 IV IV10.6311.708.569.33 V10.3511.098.439.09 VI VI10.3311.278.339.07 VII VII10.1411.178.249.08 VIII VIII9.8410.978.229.03 IX IX9,6210,818,439,03 X9,5010,568,489,04 XI XI9,2710,348,439,14 XII XII9,069,948,349,09

23. P ODGORICA, M ontenegro, 9 th IBF of Banking Associations THANK YOU FOR YOUR ATTENTION ! THANK YOU FOR YOUR ATTENTION !