2011 annual report of bank leumi romania · laurenȚiu mitrache executive president chairman of the...

BANK LEUMI ROMÂNIA

2011 Annual Reportof Bank Leumi Romania

Content

Chairman of the Board and Executive President’s Letter

Board Members

Description of the Business Activities of Leumi Group and their General Development

Economy of Israel in 2010

Bank Leumi Romania. Business Strategy

Market overview

Head office activity

Financial Highlights

Financial Statements

Contact Romania

Leumi Group Listing

BANK LEUMI ROMÂNIA

2011 Annual Report of Bank Leumi Romania

Chairman of the Board and Executive President’s Letter

Board Members

Description of the Business Activities of Leumi Group and their General Development


Bank Leumi Romania. Business Strategy

Market overview


Financial Highlights

Contact Romania

Leumi Group Listing

Financial Statements

1.

2.

3.

4.

5.

7.

8.

12.

14.

15.

1

The year 2011 brought the much awaited stabilization and

comeback in economic activity, with the Gross Domestic

Product (GDP) growing by 2.5% (in real terms, preliminary data)

and the fiscal consolidation process continuing on track. As the

shock of the VAT increase, from mid 2010 it faded away and

inflation slowed down sharply in late 2011, ending the year at

historic lows (3.14%, December 2011/December 2010), while

the labor market also saw improvements – salaries both in

private and public started to rise while the unemployment

stabilized at around 7%.

The improvement in the overall economic activity was noticed

also by rating agencies.

In 2011, we have applied a prudent approach over the market,

getting more involved in the relationship with our clients in

order to avoid possible problems in the future. Gaining market

share was not our goal. The strategy of Bank Leumi Romania in

2011 was to attract healthy companies from Small and Medium

Enterprises (SME) sector. We have chosen to focus on selected

niches in every business line specific market, developing

competitive advantages by offering products and services

specially created for those niches. We insisted on raising the

quality of the services, on the cost control and on a strong loan

portfolio monitoring.

In spite of all our internal safety measures, according to the

International Financial Reporting Standards, we registered a loss

of 49,408 thousand RON at the end of 2011, mainly because of

the loan loss reserves. The solvency ratio registered as at the

end of December 2011 was of 21.82%.

In 2012, we are going to focus mainly on the proper

administration of the current portfolio of clients, reaching for a

moderate increase in the loans of about 15%. Secondly, we are

going to adapt our service level in order to increase the

satisfaction of our target clients.

We would like to express our gratefulness and appreciation to

the executive management and all our employees for the

implication and their efforts during a very challenging year.

We want to congratulate our clients for the smart management

they have implemented in the past year, for the solutions they

have found in order to maintain and develop their businesses

despite the tough economic environment.

We are pleased to present the 2011 Annual Report of Bank Leumi Romania. The report includes an analysis of the bank’s activity during the year, assesses the local economic situation and contains audited financial information. We issue this report each year to ensure transparency for the bank’s customers, for partners and anyone interested in the products and services that our Bank offers.

BANK LEUMI ROMÂNIA

ZVI ITSKOVITCHChairman of the Board

LAURENȚIU MITRACHEExecutive President

Chairman of the Board andExecutive President’s Letter


2

ZVI ITSKOVITCH, Chairman of the Board

GIDON S. SUESSKIND, Director

MENAHEM EISENTHAL, Director

ISAAC AMAR, Director

MARIAN CRISAN, Director

BANK LEUMI ROMÂNIA

MEMBERS OF THE ROMANIANMANAGEMENT

LAURENTIU GABRIEL MITRACHE, Executive President

MANFRED RAUCHWERGER, Senior Executive Vice President

ION POPOVICI, Executive Vice President

IULIU MURESAN, Executive Vice President

DAN NEGRAU, Executive Vice President

BOARD MEMBERS


3

The Bank is defined as a banking corporation under the Banking

(Licensing) Law, 1981, and holds a banking license under that law.

As a "bank" and a "banking corporation" the Bank's activities are

governed and delineated by a system of laws, orders and

regulations, including, inter alia, the Banking Ordinance, the Bank

of Israel Law, the Banking (Licensing) Law and the Banking

(Service to Customer) Law, as well as directives, rules,

instructions and position papers of the Supervisor of Banks.

The Leumi Group is involved in a variety of banking, financial and

non-banking activities, in Israel and overseas. The Group's

activities are carried out through the Bank and subsidiary and

associate companies, through 270 branches located throughout

Israel, and through 61 branches, agencies and representative

offices in 17 countries throughout the world.

The Group's policy, in Israel and overseas, is to provide

comprehensive banking and financial solutions to its customers

and a high level of professional service, to enable them to make

use of varied distribution channels and to offer them a wide

variety of products, adapted to their needs.

As a leading banking group, aiming to achieve high levels of long-

term profitability, Leumi constantly scrutinizes trends and

changes in the business environment in which it operates and

formulates strategies to deal with these changes.

To implement its strategy, the Bank is organized in three

business lines concentrating on different market segments, with

each business line specializing in providing banking and financial

services to a particular customer segment:

Ÿ Corporate banking concentrates on servicing major and

international companies,

Ÿ Commercial banking concentrates on servicing middle

market companies,

Ÿ International and private banking is aimed at high net worth

customers requiring investment solutions at a highly

sophisticated level,

Ÿ Retail banking concentrates on providing banking services

mainly to households and small businesses,

Ÿ and Capital Markets and Financial Management coordinates

the activities of all the dealing rooms and the nostro within one

division, with a view to improving and expanding the range of

services to customers active in the capital and financial markets,

including institutional customers.

Some of the financial services are provided by means of

subsidiary companies that operate in various fields, such as:

credit cards, mortgages, leasing and underwriting. Further, the

Group invests in non-banking corporations operating in the

fields of infrastructures, Israeli and overseas real estate,

communications and the media, energy, shipping, food, retail

trade and the chemical industry. The management of the non-

banking investment portfolio is conducted through the

subsidiary, Leumi Partners Ltd.

The Leumi Group operates in a competitive market in all its

operating segments. The main competitors are currently other

Israeli banks, although, in certain segments, there are additional

competitors whose numbers are constantly growing, such as

overseas banks and non-bank competitors such as insurance

companies and other institutional entities.

2011 was typified by a global economic slowdown as a

consequence of the political upheaval in some Arab states and a

further deterioration in the economic position of some

European countries, particularly, Italy, Ireland, Greece, Spain and

Portugal. Nevertheless, the Israeli economy grew by some 4.8%,

similar to the growth rate in 2010.

Total assets under management of the Group (both balance

sheet and off-balance sheet*) amounted to NIS 898 billion as at

31 December 2011, as compared with NIS 889 billion at the end

of 2010, an increase of some 1.1%, resulting primarily from an

increase in the scope of activity, which was partially offset by a

fall in market values in Israel and throughout the world.

Bank Leumi and its subsidiary companies constitute one of the largest banking

groups in Israel, continuing activities that began 110 years ago. The Bank's

predecessor, the Anglo Palestine Company, was established in London in 1902 by

Otsar Hityashvuth HaYehudim Jewish Colonial Trust Limited, the predecessor of

Otsar Hityashvuth HaYehudim B.M.

Description of the BusinessActivities of Leumi Groupand their General Development

BANK LEUMI ROMÂNIA


4

government debt to GDP ratio of 60% of GDP, according to the

Maastricht accord of the EMU.

The exchange rate of the shekel appreciated during 2011 to NIS

3.58: US$1 on average from NIS 3.73: US$1 on average in 2010.

The resilience of the shekel, despite global financial turmoil,

seems to have been related to the country's strong economic

fundamentals such as its solid external account position. This

includes Israel's balance of payments, which continued to have a

large surplus in the current account along with a level of foreign

currency reserves and no net external debt.

The consumer price index rose 2.2% in 2011, which is within the

official price stability target of 1-3%. A look at the primary

components of the CPI change shows that the housing item is

still a major contributor to inflation.

The negative trend that prevailed during 2011 in the Israeli

stock market strengthened in since July through the end of the

year. This continuing negative trend stems from a number of

factors, among them being: the deepening economic crisis in

Europe, the geo-political uncertainty in Israel’s neighboring

countries, changes in the level of domestic uncertainty in the

security realm in Israel, and the relatively rapid trend of interest

The Exchange Rate, Inflation and

Monetary Policy

Performance of Tel-Aviv Stock

Exchange Traded Shares

Economic Growth

The Sovereign Credit rating

Fiscal Policy

Israel's Gross Domestic Product (GDP) grew by 4.8%, in 2011

(the growth rate is in real terms). The expansion of the Israeli

economy took place in almost all sectors: exports, private

consumption and fixed asset investments such as machinery,

equipment and construction – both residential and non

residential.

With its strong growth in 2010-2011, Israel, an OECD member,

has continued to maintain its growth gap well over the OECD

average. The outpacing Israel compared to the OECD has been

clearly been evident since 2004. Israel's growth advantage over

OECD countries became highly noticeable during the 2008-

2009 global recession, during which Israel's GDP rose by 5.4%

cumulatively while OECD country's GDP fell by 3.1% on

average.

Following the ongoing improvement in the state of the Israeli

economy in previous years, the country's credit rating was

increased by the various credit rating agencies in late 2007 and

in early 2008. In September 2011 Israel's credit rating was

further increased to A+ by Standard and Poor's.

In 2011 the deficit was 3.3% of GDP, compared to a target of

2.9% of GDP. The slight deviation of the deficit from its target is

attributed to an weakening of state tax revenues. Israel's fiscal

path is subject to an explicit feedback rule with a target of a

BANK LEUMI ROMÂNIA



million, compared with a net profit of NIS 496 million in the

fourth quarter of 2010, an increase of 24.6%.

The operating profit of the Group totaled NIS 1,889 million in

2011, as compared with a profit of NIS 2,151 million in 2010, a

decrease of 12.2%.

The decrease in the value of the securities available-for-sale

portfolio in 2011 amounted to NIS 686 million, net (after tax),

compared with an increase in value of NIS 159 million, net (after

tax), in 2010.

Until 29 February 2012, the increase in value of securities

amounted to NIS 171 million after tax.

Return on equity of net profit reached 8.3%, compared with

10.3% in 2010.

The net profit per share in 2011 was NIS 1.28 compared with

NIS 1.58 in 2010.

* Total assets, as well as customers' securities, the value of

securities in custody of mutual funds, provident funds and

supplementary training funds for which operational,

management, custodial and pension counseling services are

provided.

As a result of the slowdown in the global and local economy,

there was a decline in the Group's results, mainly due to falls on

the capital market which impacted a decrease in operating and

other income and salary expenses, which was partly offset by an

increase in the level of activity and from a change in deferred

taxes.

The net profit of the Group for 2011 totaled NIS 1,891 million,

compared with a profit of NIS 2,334 million in 2010, a decrease

of 19.0%.

The net profit for the fourth quarter of 2011 totaled NIS 618

5

Description of the Business

Activities of Bank Leumi Romania

and their General DevelopmentBank Leumi Romania is a financial institution with a full banking

license operating under Romanian law, in which Bank Leumi

Israel has a 99.9% stake.

The Bank has been present in Romania since 2006 and currently

operates with 30 branches and agencies, through which it

covers the most important economic centers in the country.

Our policy is to provide comprehensive banking and financial

solutions to customers and a high level of professional service,

to enable them to make use of varied distribution channels and

to offer them a wide range of products, adapted to their needs.

In its aim to achieve long-term profitability, the Bank constantly

analyses trends and changes in the business environment where

it operates and formulates strategies to adapt to the new

market conditions.

To implement its strategy, the Bank is structured on five

business lines, concentrating on different market segments, with

each business line specializing in providing banking and financial

services to a particular customer segment:

Commercial banking concentrates on serving SME’s, Private

Banking is aimed at high net worth customers, Retail banking

provides banking services to upper-retail and commercial-

linked individuals, Real Estate focuses on real-estate projects

and Israeli Desk manages Israeli clients.

Bank Leumi Romania’s market share (in total assets) was 0.32%

as of 31th of December 2011, ranking 29th among the 42 local

banks.

The total assets of Bank Leumi Romania amounted to 1,138

million Ron at the end of 2011, compared to 1,184 million Ron

at the end of 2010. The deposits from the public amounted to

636 million Ron at the end of 2011, compared to about 627

million Ron at the end of 2010. Credit to the public amounted to

726 million Ron, compared to amount 856 million Ron at the

end of 2010. The capital, reserves and surpluses amounted to

some 211 million Ron at the end of 2011, compared to 260

million Ron at the end of 2010. At the end of 2011, Bank leumi

Romania registered a loss of 49,408 thousand lei.

Bank Leumi Romania has formulated a multi-year business

strategy that is based on the following vision: exceed customers,

employees and shareholders expectations.

We aim to exceed customers expectations through personal

relationship, enhanced professional standards and standardized

products offered to Retail and SME sector.

We aim to exceed employees’ expectations by creating a

challenging work environment, a place where each employee

can build a career and benefit by a fair reward system, linked to

personal performance.

We aim to exceed shareholders’ expectations in terms of

Bank’s profitability profile.

Considering our strategic vision as well as our competitive

position, we choose to implement a Focused Differentiation

Strategy. This strategy involves focused attention on a narrow

portion of the total market, in our case SME sector and upper

retail.

We aim to incorporate differentiating features that cause clients

to prefer our product or service to rival brands.

We will gradually focus on selected niches on each business

lines’ specific markets, developing competitive advantages by

offering products & services especially developed for those

niches, achieving profitability by combining delivered quality and

competitive costs, with a conservative risk appetite.

Bank Leumi Vision

Bank Leumi Strategy

BANK LEUMI ROMANIA.Business Strategy

BANK LEUMI ROMÂNIA


Yeter-50 index of small cap shares declined 26% each in 2011.

The sectors that experienced only moderate price declines

relative to the average (the TA-100) included the industrial

sectors. On the other hand, the sectors that experienced

relatively large price declines continued to be the financial

sectors, as well as holding and investment companies.

rate hikes in Israel in the initial months of the 2011, followed by a

reduction of Israeli economic growth prospects in 2012.

During 2011, the Israeli TA-25 index of blue chip shares declined

with 18%, and the TA-100 index of the most actively traded

shares declined 20%. In 2011, the indices of the second-tier and

small cap stocks experienced sharper declines than that of the

TA-25 index. The TA-75 index of second-tier stocks and the

6

Group.

During the following years, the actions of Bank Leumi Romania

will be concentrated on becoming one of the most important

Private Banking bank on the Romanian market. At the same time,

the bank will promote loyalty products and services to all

existing upper-retail customers, in order to help our clients to

become a perfect Private Banking client.

Retail Banking - will adopt a very selective strategy that

concerns only upper-retail clients – only clients with an active

profile, who are interested in all new products and services. In

the long run, these customers can become Private Banking

clients.

The targeted Retail clients:

Upper-retail clients (High wages > EUR 750/month); Active

profile;

Employees of companies which are Bank Leumi clients/Cross-

selling with Commercial business line

Potential clients of real estate developers who are financed by

Bank Leumi Romania.

Real Estate – Focus on Israeli developers

We will grow our business by changing the focus from

residential (sector impacted severely by the economic

recession and by the low purchasing power) to small office

refinancing, and/or retail premises (re)financing, that can offer

even nowadays and in 2-3 years run a reasonable risk return

ratio.

Israeli – Focus on Israeli customers

The most distinctive differentiation criterion in our bank’s

advantage is the LEUMI GROUP belonging.

The activity is structured in such a way that clients do not

perceive a difference when comparing to their banking

relationship in Israel.

Maintaining and developing contacts with Israeli

communities/associations is a constant preoccupation of Israeli

business line.

The criteria for the attribution of customers according to the

operating segments at Bank Leumi are generally as follows:

Strategic priorities:

Focus on services

Enhanced product standardization (including Product packages)

Pricing differentiation according to clients revenues

Optimizing lending process

Strong loan portfolio monitoring (high credit risk sensitivity)

Network optimization to be fit for the selected niches

marketing strategy (SME and upper retail)

HR overall upgrade (recruitment, key position management,

training, communication and compensation)

The above-mentioned priorities have been adapted to the

business lines where Bank Leumi operates and that are

described below. Each business line is specialized in a particular

market segment with the aim of creating a competitive

advantage among its target markets.

Bank Leumi is organized in five business lines, concentrating on

different market segments, with each business line specializing in

providing banking and financial services to a particular customer

segment.

The details of the five major business lines of the Bank are as

follows:

Commercial Banking - Deals with legal entities

commercially active: Medium enterprises, corporate and

multinational companies.

The Bank focuses on Medium Enterprises Market.

The target clients are companies with annual turnover between

EUR 500,000 and 5 mill EUR.

The clients will be selected with priority from the sectors that

have perspectives to register a positive trend sooner than the

average industry.

Private Banking – Focus on high net worth individuals

The target clients are the high net-worth residents and non-

residents, appreciative of long-term relationship with a

reputable bank that is member of a private banking specialized

Description of Operating Segments

BANK LEUMI ROMÂNIA

Business line

COMMERCIAL

RETAIL

PRIVATE BANKING

REAL ESTATE

ISRAELI DESK

Market segment

Legal entities: SME’s,

corporate and

multinational companies

Individuals & Freelancers

Wealthy individuals

Office, commercial and

residential projects

Individual and legal clients with

main shareholders based in Israel

Niche

SME’s

Affluent clients

High Net Worth

individuals

Small office refinancing

and/or retail

premises (re)financing

Clients from Israel

Main characteristics

Companies with turnover

EUR 0.5-5 mill.

Income over EUR 750

Incomes > EUR 5.000/month

or with deposits > EUR 50.000

All clients except those from Real Estate.


7

(absorbing some 70% of the exports) is entering a mild

recession. This will most probably affect the industrial

production, and the agriculture will not have a significant

contribution to GDP increase, after a multi-year record crop in

2011.

Romania will need to boost its internal market (i.e. private

consumption) and investment activity (financed by higher EU

cohesion funds absorption) in order to conserve its growth

momentum. The latest forecast from the European Commission

pencils in a 1.6% growth in GDP for Romania this year, while

most analysts in the private sector see the economy expanding

by 0.5% to 1% in 2012.

The banking system continued its convalescence after more

than two years of economic crises, with very high levels of the

cost of risk leading to another year of net losses, albeit smaller

than in 2010.

As the nonperforming loans ratio (past due over 90 days)

increased to 14% in December 2011, the ROE for the entire

system was minus 1.4%. However, the solvability ratio is at a very

comfortable level of 14.51%, compared to a minimum of 10%

required by NBR and the 8% international standard. This was

achieved through constant capital injections from shareholders,

sometimes done at the direct request of the NBR.

Total assets increased by 3.5% to 354 billion Lei (US$ 106

billion), as loans to the Government and to the private sector

increased.

There are 42 banking institutions active in the Romanian

market, with foreign financial groups controlling more than 85%

of the assets. There is a strong competition and the market is

quite segmented. Peer group I banks (market share above 5%),

only seven in number, control 66% of the total assets. There are

more than 20 banks in Peer Group III (market share below 1%),

but they accumulate only 5.4% of the total assets, thus making it

very difficult to achieve critical mass. The ROE for Peer Group III

banks is -18.6%. Bank Leumi Romania is in Peer group III.

As part of reorganization plans, some international financial

groups (Royal Bank of Scotland, Volksbank, ATE Bank and MKB

Bank) tried to sell their Romanian operations, but none

managed to find a buyer.

Demand for loans from the private sector has been recovering

slowly, mainly in the Commercial sector (a 10% growth was

recorded in corporate loans), whilst the population remains

over indebted.

The competitive environment

Market overview

BANK LEUMI ROMÂNIA

Changes in the business

environmentThe year 2011 brought the much awaited stabilization and

comeback in economic activity, with the Gross Domestic

Product (GDP) growing by 2.5% (in real terms, preliminary data)

and the fiscal consolidation process continuing on track. As the

shock of the VAT increase from mid 2010 faded away, inflation

slowed down sharply in late 2011, ending the year at historic

lows (3.14%, December 2011/December 2010), while the labor

market also saw improvements – salaries both in private and

public started to rise while the unemployment stabilized at

around 7%.

The improvement in the overall economic activity was noticed

also by rating agencies. Fitch lifted Romania’s sovereign rating by

one notch to “BBB-“ in July 2011, thus re-including it in the

“investment grade” risk category. Moody’s kept the “Baa3”

investment-grade rating for Romania throughout the crises

period. Standard & Poor’s remains the only important rating

agency that puts Romania below investment grade, with a “BB+”

rating.

The Government signed a new “stand-by” agreement with the

international lenders – the International Monetary Fund (IMF)

and the European Union (EU) – for 5 billion Euros in early 2011,

but this second arrangement is considered “precautionary”.

Under this second agreement, the Government committed to

undertake structural reforms – from new labor market and

pensions legislation to privatization of State Owned Enterprises

(SOE) and liberalization of administrative prices.

Although the pace of implementation of these reforms has been

rather slow, Romania managed to meet its financial objectives,

and IMF and the EU consider the agreement to be “on track”.

The cash-base budget deficit declined to 4.35% of GDP in 2011

(from 6.8% in 2010 and just below the target of 4.4%) and is

projected to remain below 3% of GDP in 2012, in accordance to

EU’s Maastricht Criteria. Under these conditions, the public

debt stabilized at around 34% of GDP, one of the lowest levels in

the EU.

As 2012 begins, the economy seems to be in a much better

shape than one year ago. The economic recovery, stared in the

autumn of 2010 with the acceleration of exports, is now broad

based. Industrial production, agriculture, construction activity

and private consumption have all re-entered positive territory

in the third quarter of 2011.

However, there are some head-winds for the Romanian

economy in 2012, as the Euro Zone, its main trade partner


8

February 2012. One of the aims of this policy is to boost

demand for RON denominated loans in the detriment of FX

loans.

Although the money market seems to be over liquid (short

term rates hover at 3%, well below the key-rate), some banks

look to be marginalized, paying interest rates of up to 8% for

RON and 4% for euro for retail deposits.

The NBR modified the Regulations for the Minimum Reserves

Requirements (MRR) in February 2012, announcing that it could

set “differentiated” rates for liabilities with residual maturities

(even renewed ones) higher than two years. As of Feb. 2012, the

MRR rates are 15% for RON and 20% for other currencies.

Consumer loans have been declining constantly over the last

years, while mortgage loans have raised thanks to the “Prima

casa” (First House) governmental program under which

barrowers can access financing with a down payment of just 5%.

The central bank (NBR) has been pressing for a more prudent

lending policy, namely to lower the very high rate (over 63%) of

FX denominated loans. It has implemented new lending

regulations for individual customers, capping the repayment

period at five years for consumer loans and requiring higher

collateral (lower loan-to-value ratio) for FX mortgage loans.

From the autumn of 2011 the NBR started to lower the key-

interest rate, which dropped to a record low 5.5% as of


BANK LEUMI ROMÂNIA

Products and services offered to companies:

loans (short/medium term or seasonal, letters of guarantee

- LGs, LCs etc.)

deposits (with multiple withdrawals, interest paid in

advance, automatic overnight, Escrow etc.)

cards (MasterCard Business, SMS alerts)

Internet Banking

services:

- cash transactions, non-cash transactions - payments and

receipts in domestic and foreign currency, remittances of

foreign currency checks to be cashed abroad, documentary

credit, documentary and simple incassos;

-FX operations, including currency risk limiting products –

Forward and SWAP on foreign exchange;

Competition

The competition is represented by all the banks carrying on

business in Romania. In 2011, the banks suffered until the end of

the year because of the continuous increase in bad loans ratio.

The banks became very prudent when negotiating a loan and, at

the same time, brought some solutions in order to help current

clients in their business (new payment terms, renegotiation of

the contract conditions etc.)

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

COMMERCIAL DIVISIONGeneral

Bank Leumi Romania’s strategic focus is on developing the

commercial sector, by creating and offering products and

services adapted to the needs of the clients.

Structure of the Division

The Commercial Division, located in Bucharest, manages the

Commercial area. The contact with customers is maintained by

means of the 23 branches located throughout the country.

Strategy

The year 2011 was characterized by a prudent lending policy,

given the significant decline registered by many companies in

various markets as well as the decline in turnover, leading to the

increase of the bad loans. Our focus was to identify the

reimbursement source, the quality of the guarantees and the

involvement level of the owners in the business.

Bank Leumi Romania has been supporting the clients who faced

difficulties in reimbursement of the loans, providing them

suitable products on short and medium term and by

restructuring the terms of repayment.

In order to attract new customers, the Commercial Division has

carefully analyzed the structure of the activity areas and the

effects generated by the financial crisis at national and

international level, aiming thus at mitigating the risk and focusing

on the segments that registered financial stability and growth.


9

Bucharest. The contact with the customers is done through the

30 branches located throughout the country.

Strategy

The strategy in 2011 targeted individual customers from top

companies working or planning to work with Leumi - this way,

all the needs of these companies, both in terms of support and

development activities will be satisfied through Leumi - and

potential customers of property developers that were financed

through the Real Estate Division – by offering flexible solutions

in a period of high economical uncertainty.

The products and the services offered by Bank Leumi Romania /

Retail Division include current accounts and saving deposits,

real estate investment loans, mortgage loans, cards with or

without overdraft, Internet Banking, SMS Alerts and OP Link.

Competition

The competition for the upper segment of retail is strong. Both

banks with history in the Romanian banking market and most of

the new – comers aim at attracting customers with a solid

material position, in order to enlarge the number of services

and products.

Analysis loans and deposits

The lending rate for retail remained low considering the

economic environment, affected by relatively high gearing of

individual customers in Romania, increasing unemployment, the

prospects of an uncertain future.

The people interest remained for “First House” Loans, and Bank

Leumi subscribed to this trend. Thus, 56% of all new loans

granted in 2011 were for “First House” Loan.

Bank Leumi Romania continued to offer in 2011 dedicated

lending products to potential customers that cash their salaries

through the card account opened within the Bank, with a wide

range of facilities.

Bank Leumi Romania continued to be flexible regarding the

saving accounts area, by taking into consideration our client’s

needs and opinion. Thus, the clients can choose from a wide

range of deposits, on short, medium or long term, and for each

one they can decide if the interest has to be paid in advance,

monthly or at maturity.

- Focus on Israeli customers

The criterion in the bank’s advantage that makes the difference

is the LEUMI GROUP belonging.

The “Israeli Desk Unit” is structured in such a way that the

clients do not perceive any difference when making the

comparison to their banking relationship in Israel.

Maintaining and developing contacts with Israeli

communities/associations is a constant concern of “Israeli Desk

Unit”.

ISRAELI AND REAL ESTATE

DIVISIONISRAELI DESK

BANK LEUMI ROMÂNIA

Analysis

The total value of loan portfolio outstanding in 2011 was of

RON 507 mill, representing around 56% of the total loan

portfolio. The value of raised sources in 2011 amounted to RON

282 mill as at 31 December 2010, representing 44 % of the

deposits of non-banking customers portfolio.

General

The professional experience of over 100 years of tradition in

serving wealthy clients worldwide, the financial soundness of

the Leumi Group, the international wide range of banking and

financial activities under one roof are the main assets of the

relationship between the Bank and the customer.

The Leumi Group can offer accounts in many countries,

including Luxembourg, Switzerland, USA and UK, which will

allow for the selection of power, giving you the chance to

maximize financial opportunities distinctly, whenever and

wherever our clients desire.

Structure of the department

The Private Banking Department of Bank Leumi Romania offers

to its clients a professional team of relationship managers. They

are ready to handle banking and investment needs of the clients,

advising on different products of the bank, offering unique

solutions for clients' funds and covering the entire spectrum of

banking transactions.

Strategy

The bank makes the difference by the objective and creative

counseling, which meet the specific needs of the clients wanting

more sophisticated banking services and customized products.

Our highly professional team offers the most relevant and

appropriate solutions for clients' financial needs. Bank Leumi

Romania becomes the client's loyal and discreet private banker

adviser.

Products are based on the standard features (negotiated

interest deposits, saving accounts, dedicated exchanges with

preferential exchange rates, operations) and customized

banking solutions.

General

On the individuals segment, Bank Leumi Romania maintained

the "upper-retail” approach, continuing to strengthen the

relationships with individuals registering high income, by a wide

range of flexible and personalized service and a careful

counseling team.

Structure of the division

The Retail area is managed by the Retail Division, located in

RETAIL AND PRIVATE BANKING

DIVISIONPRIVATE BANKING

RETAIL


10BANK LEUMI ROMÂNIA

be selected client - the list is defined on the basis of carefully

selected parameters, product proposals being made in

accordance with the activities carried out by a customer Leumi)

To make IT greener, it was developed a virtualization solution in

order to obtain many advantages like simplified Disaster

Recovery procedure by faster restoration, saves energy,

hardware and space, optimal redundancy. All servers that were

moved on this platform were virtualized in 2010.

The norms regarding Sensitive Position, Conflict of Interests,

Internal Regulation were adapted in order to comply with the

Romanian Legislation and with the Group Procedures.

Trainings were organized for the employees on the following

topics: Anti Money Laundering (e-learning), New products (e-

learning), Data Security (e-learning), IFRS, Financial Analysis,

Cash-flow, Legislation, Financial and money market products,

Fraud, Operational Risk, IT Security, Management system of

information security, Debt recovery.

In order to improve the internal communication between Top

Management and the employees, we continued to organize

meetings. With a pleasant and open atmosphere, these meetings

approach all the problems the employees face, including the

issues related to the human resources field, trying, as much as

possible, to provide support in solving them.

Marketing activities in 2011 were focused on keeping existing

clients and attracting new ones that correspond to the general

strategy of the bank.

PRODUCTS AND SERVICES LAUNCHING

During 2011 we focused on launching new products and

services that fit our strategic clients, on adapting the existing

products and services to the clients’ needs and to the market

evolution. We also focused on increasing the number of

products used by each client.

The main products that were launched during 2011 are:

Invitation to development – new investment loan dedicated

to SME’s. The particularity of the loan was the possibility for the

client to choose the margin of the loan interest.

Diamond Deposit – deposit dedicated to Private Banking

clients that allow them to deposit and withdraw money, in

certain conditions, without penalties for the interest paid.

Deposit Alerts, FX Alerts, Current Account Alerts – Leumi

SMS Alert service was extended by adding the following

facilities: alerts regarding the maturity date of deposits, alerts

regarding the official exchange rate (NBR exchange rate) for

major currencies: EUR, USD, GBP, alerts regarding the incoming

checks and promissory notes.

HUMAN RESOURCES

MARKETING ACTIVITIES

Ÿ

Ÿ

Ÿ

REAL ESTATE

TREASURY

RISK MANAGEMENT

IT & COMMUNICATION

Ÿ

– Focus on income producing assets, mainly

having Israeli shareholders

We continued to look for new exposures during 2011, while

intending to keep our target of small / medium offices

(re)financing, logistic and/or retail premises (re)financing, to

choose projects that can propose certain reliability, stability and

a reasonable risk return ratio.

The portfolio of products promoted by the Treasury Division

includes currency and money market transactions (SPOT,

FORWARDS, FX SWAP), deposits with non-standard maturity

or automatic overnight deposits. They are characterized by

competitive rates related to the money market and attractive

rates taking into account the foreign exchange. The possibility of

negotiating these products offers customers a high flexibility.

In 2011 Bank Leumi Romania focused mainly on credit risk and

operational risk management, considering the global economic

crisis manifestation.

Bank Leumi Romania has reviewed the entire risk management

framework in order to improve the risk management process,

the internal capital adequacy assessment process and also to

assure the compliance with sound practices and standards

implemented at Leumi Group level.

Bank Leumi Romania has paid attention to environmental and

social risks, all of these being assessed in the individual analysis of

credit requests. The Bank’s credit policy aims at financing those

activities that do not endanger the environment and that are

compliant with the legislation on social matters.

As we continue to distinguish ourselves as a bank with a global

presence, information technology can be used to strategically

advance the bank’s mission and make our community ever

better.

Software projects were initiated either at NBR

recommendations, either following a request from business

departments. Most of them were oriented towards automate

operations in order to increase performance and minimize

risks. IT&C division managed to carry out, in short term,

projects that have involved significant changes such as:

Direct Debit (core-banking module), CRM (Customer

Relationship Management), Insolvency and Seizure module,

Watch list, Cross-selling (Cross-selling module developed to

provide two main types of information: list of products already

in use by the selected client; list of recommended products will


11

ENVIROMENTAL POLICYApplicable on different activities, the environmental impact is

part of the Bank's general policy. Consequently, the Bank

management pays attention to the impact on the environment

of the activity performed in order to accomplish the measures

in the area of environmental protection and encourages the

prevention of environment pollution in accordance with the

regulations. Thus, the bank aims at creating projects that ensure

a healthy environment.

BANK LEUMI ROMÂNIA

ADVERTISING

Advertising within the territorial units of Leumi: folders, posters,

printed advertising.

Advertising by means of own channels: Leumi site, current

account and card account statements.

Main marketing campaigns: Leumi SMS Alerts Campaign for

existing clients, Leumi SMS Alerts Campaign for new clients,

Leumi and MasterCard, Invitation to development (campaign

for granting loans), Direct Debit Vodafone promotion

OTHERS

Site www.leumi.ro was developed to be easily opened and

used from mobile phones.

BUSINESS EVENTS

In 2011, Bank Leumi Romania has organized business events for

local business communities in Oradea and Bucuresti. On these

occasions, the Leumi team presented the bank promotional

offer, discussed about the problems to which our guests are

exposed during this crisis and developed solutions for the

future.

SPONSORSHIP

Bank Leumi Romania wants to preserve its roots and is always

helping the local associations or foundations to produce

materials that help the local Jewish communities to develop and

to give to the next generation samples of the Jewish tradition.

For that we have involved in helping Jewish Community

Federation in Romania and the Chabad Lyubavitsh Foundation

to produce the Annual Calendar. Also, we have sponsored the

Annual Event organized by The Lauder Foundation in

December: “Friendship evening Hanukah 2011”.

On the cultural part, we have sponsored “The Romanian

Theatre Company Passe-Partout”, by providing funds so that

they could present in Israel the “Rencontres” show at the

International Theatre Festival “Man. Woman. Stage” from

Tiberias, Israel. Another cultural project was the sponsorship

accorded to Maria Filotti Cultural Association for the project:

“The theatre and the school”.

In 2011, Bank Leumi Romania developed several projects of

social responsibility that involved donation of IT equipment.

Ÿ

Ÿ

Ÿ

PR ACTIVITIES

SOCIAL RESPONSABILITY



Financial Highlightsprepared in accordance with InternationalFinancial Reporting Standards (IFRS)

Loans - 31 December 2011, the gross value of loans to

customers totaled RON 726 million (net value). Value of the

reserves at the same time was RON 179 million compared with

RON 102 million registered at 31 December 2010.

Customer deposits - sources attracted from clients were RON

636 million at 31 December 2011.

Profit / Loss at December 2011 - the bank registered losses of

RON 49,408 thousand.

On 31 December 2011, Bank Leumi Romania S.A. owned assets

worth RON 1,138 million. Own funds at the same time in 2010

were worth RON 1,183 million.

Solvency ratio at 31 December 2011 was 21.82%, still above the

limit required by the legislation.

The bank's share capital on 31 December 2011 was worth RON

248 million (as at 31 December 2010), 99.90% owned by Bank

Leumi le-Israel.

2010

171,840

65,019

855,862

67,930

16,885

6,045

1,183,581

626,802

288,943

7,703

923,448

260,133

1,183,581

Balance sheetDecember 31st - 2010 and 2011 (thousand RON)

Assets

Cash and current accounts with banks

Placements with banks

Loans and advances to customers

Investment securities

Tangible and intangible assets

Other assets

Total Assets

Liabilities

Deposits from non-bank customers

Deposits and loans from credit institutions

Other liabilities

Total liabilities

Shareholders Equity

Total liabilities and equity

2011

146,089

159,502

726,272

83,449

18,093

4,152

1,137,557

635,893

280,578

10,330

926,801

210,756

1,137,557


2010

1,183,581

855,862

626,802

260,133

(12,954)

2009

1,293,792

879,436

715,023

273,101

12,745

(thousand RON)

Total assets

Total loans

Total deposits

Shareholders equity

Profit / Loss

2011

1,137,557

726,272

635,893

210,756

(49,408)


Profit and loss account(2010 and 2011 – thousand RON)

Net interest income

Net commission income

Other net operating income

Operating income

Net loss of removing from the records and depreciation of assets

Operating and general administrative expense

Profit (loss) before tax

Income Tax Expense

Net result of financial year

2011

69,385

10,662

9,309

89,356

(76,676)

(62,056)

(49,376)

(32)

(49,408)

2010

70,218

12,571

10,289

93,078

(42,438)

(63,594)

(12,954)

-

(12,954)

Total assets (Th RON)

2011 1,137,557

2010

2009

1,183,581

1,293,792

Total deposits (Th RON)

2011 635,893

2010

2009

626,802

715,023

Total loans (Th RON)

2011 726,272

2010

2009

855,862

879,436

Total equity

2011 210,756

2010

2009

260,133

273,101


ALBA-IULIAP-ta Iuliu Maniu nr. 17Tel.: 0258/81.61.63Fax: 0258/81.69.79

ALESDPiata Unirii nr. 16, Jud. BihorTel.: 0259/34.25.80Fax: 0259/34.24.69

ARADP-ta UTA, Bl. U4, Scara A+BTel.: 0257/24.22.27Fax: 0257/242.225

BACAUStr. Dumbrava Rosie nr. 2Tel.: 0234/51.04.43Fax: 0234/51.92.35

BAIA MAREStr. Progresului nr. 54Tel.: 0262/22.17.42Fax: 0262/22.69.02

BISTRITAPiata Centrala nr.27Tel.: 0263/23.08.02Fax: 0263/23.08.07

BRASOV - BranchStr. 15 Noiembrie nr. 86Tel.: 0268/31.94.00Fax: 0268/31.95.50

BRASOV - AgencyStr. Republicii nr. 60Tel.: 0268/47.10.52Fax: 0268/47.10.54

BUCURESTI - SMBB-dul Aviatorilor nr. 45Tel.: 021/206.70.09Fax: 021/260.08.31

BUCURESTI – Mosilor BranchCalea Mosilor nr. 280, bloc 20Tel.: 031/402.25.08Fax: 021/210.39.93

BUCURESTI – Unirea BranchB-dul Unirii nr. 25, Bl.14Tel.: 021/336.97.72Fax: 021/336.97.73

BUCURESTI - Militari BranchB-dul. Iuliu Maniu nr. 55, bl.17Tel.: 021/430.33.73Fax: 021/430.12.73

BUCURESTI - Titan BranchB-dul. Chisinau nr. 8, bl.M2Tel.: 021/255.20.12Fax: 021/255.20.32

BUCURESTI - Alba Iulia AgencyPiata Alba Iulia nr. 8, bl.17Tel.: 021/327.00.57Fax: 021/327.00.52

BUZAUB-dul Unirii, Bl. 16ETel.: 0238/71.02.41Fax: 0238/71.02.50

CLUJ-NAPOCAP-ta Unirii nr. 31Tel.: 0264/59.70.47Fax: 0264/59.09.07

CRAIOVAStr. Calea Bucuresti nr. 34, bl. A8Tel.: 0251/54.40.00Fax: 0251/54.40.50

CONSTANTAB-dul Mamaia nr. 33Tel.: 0241/55.14.18Fax: 0241/54.99.61

GALATIStr. Brailei nr. 165 BTel.: 0236/46.00.80Fax: 0236/46.54.20

IASIStr. Sfantul Lazar nr. 4, scara ATel.: 0232/27.79.05Fax: 0232/27.79.07

NEGRESTI OASStr. Victoriei nr. 44, Jud. Satu-MareTel.: 0261/85.50.40Fax: 0261/85.50.40

ORADEAPiata Unirii nr. 2-4Tel.: 0259/21.00.23Fax: 0259/47.20.57

PITESTIStr. Craiovei Bl. E3B, Sc. CTel.: 0248/22.03.00Fax: 0248/22.17.79

PLOIESTIP-ta Victoriei nr. 4, bl.CC-VestTel.: 0244/51.26.97Fax: 0244/51.11.39

SATU MAREStr. Ham Janos nr. 1Tel.: 0261/71.55.69Fax: 0261/71.03.11

SIBIUStr. Herman Oberth nr. 4Tel.: 0269/21.16.14Fax: 0269/21.64.07

SUCEAVAStr. Stefan cel Mare nr. 3Tel.: 0230/52.17.71Fax: 0230/52.23.40

TARGU MURESP-ta Victoriei nr. 18Tel.: 0265/26.85.51Fax: 0265/26.40.70

TIMISOARAStr. Paris nr. 2ATel.: 0256/49.49.84Fax: 0256/49.50.08

ZALAUP-ta Iuliu Maniu nr. 7Tel.: 0260/66.26.73Fax: 0260/66.26.70

Phone: 0040 21 206 70 53E-mail: [email protected]


Contact Romania



Leumi Group Listing

Bat Yam

Ashdod

Eilat

LEUMI SUBSIDIARIES

north america

NEW YORK

Bat Yam Branch67 Ha‘azmauth Ave., Bat Yam 59315Tel: 972-3-500-1902 • Fax: 972-3-500-1988

Rogozin Branch2 Haim Moshe Shapira St., Ashdod 77545Tel: 972-8-868-8300 • Fax: 972-8-868-8355

Eilat BranchShderot Hatmarim, Commercial CenterEilat 88000Tel: 972-8-636-4102 • Fax: 972-8-636-4166

Leumi Partners Ltd.5 Azrieli Center (Square Tower ) 36th floor,Tel-Aviv 67025Tel: 972-3-514-1201 • Fax: 972-3-514-1275www.leumico.co.ilInvestment houseBank Leumi le-Israel Trust Company Ltd.8 Rothschild Boulevard, Tel Aviv 66881Tel: 972-3-517-0777 • Fax: 972-3-517-0770Full Trust Services

Bank Leumi USANew York Head Office579 Fifth Avenue, New York, NY 10017Tel: 1-917-542-2343 • 1-800-892-5430Fax: 1-917-542-2254E-mail: [email protected] Service Commercial Bank / Private Banking1400 Broadway at 38th StreetNew York, NY 10018Tel: 1-212-921-3700 • Fax: 1-212-921-3711Full Service Commercial BranchInternational Private Banking564 Fifth Avenue, 2nd Floor, New York, NY 10036Tel: 1-212-626-1001 • Fax: 1-212-626-1009Bank Leumi Leasing Corporation562 Fifth Avenue, 8th FloorNew York, NY 10036Tel: 1-212-626-1230 • Fax: 1-212-626-1271Leumi Investment Services Inc.562 Fifth Avenue, 7th FloorNew York, NY 10036Tel: 1-212-407-4345 • Fax: 1-212-407-4351

israel

Leumi Foreign Residents & Tourist CentersTel-Aviv

Jerusalem

Haifa

Netanya

Herzliya Pituach

Bank Leumi le-Israel B.M.Leumi Tel-Aviv Headquarters24-32 Yehuda Halevi Street, Tel Aviv 65546Tel: 972-3-514-8111• Fax: 972-3-514-8656www.bankleumi.comLeumi International & Private Banking Division35 Yehuda Halevi Street, Tel Aviv 65546Tel: 972-3-514-3313 • Fax: 972-3-514-9602E-mail: [email protected] Private Banking Centers for International Clients Tel-AvivDizengoff Top Tower, 17th Floor55 Dizengoff Street, Tel-Aviv 64332Tel: 972-3-621-7333 • Fax: 972-3-621-7355French & German speakersDizengoff Top Tower, 23rd Floor55 Dizengoff Street, Tel-Aviv 64332Tel: 972-3-621-7444 • Fax: 972-3-621-7455/6English, Spanish & Russian speakersJerusalem19 King David Street, Jerusalem 94101Tel: 972-2-620-1811 • Fax: 972-2-624-0431

Main Branch19 Herzl St., Tel-Aviv 66884Tel: 972-3-514-8111 • Fax: 972-3-514-8744Dizengoff Branch50 Dizengoff Street, Tel-Aviv 64332Tel: 972-3-526-0452 • Fax: 972-3-526-0455Bialik Branch43 Allenby Street, Tel-Aviv 65243Tel: 972-3-514-3182 • Fax: 972-3-514-3198

King George Branch22 King George St., Jerusalem 94262Tel: 972-2-620-7571 • Fax: 972-2-620-7550

Ha‘Carmel Branch123 Hannassi Ave., Haifa 34634Tel: 972-4-830-0608 • Fax: 972-4-830-0684

Netanya Branch5 Herzl St., Netanya 42400Tel: 972-9-860-4502 • Fax: 972-9-860-4571

Herzliya Pituach Branch38 Wingate St., Shalit SquareHerzliya Pituach 46750Tel: 972-9-970-5300 • Fax: 972-9-970-5355



CANADAOntario

QUEBEC

Bank Leumi le-Israel B.M. Financial CompaniesCAYMAN ISLANDS

CURAÇAO

latin america

URUGUAY

PANAMA

VENEZUELA

Toronto5140 Yonge Street, Suite 2220Toronto, Ontario M2N 6L7Tel: 1-416-594-0681 • Fax: 1-416-594-0801E-mail: [email protected] Office

Montreal1 Westmount Square, Suite 400Montreal, Quebec H3Z 2P9Tel: 1-514-931-4457 • Fax: 1-514-931-5240E-mail: [email protected] Office

George Town BranchBritish West IndiesLimited Service / Specialized Banking

LeumiInternational Investments N.V.Financial CompanyMailing Address for Cayman Islands andCuraçao:c/o Bank Leumi (Luxembourg) S.A.6D, Route de TrevesL-2633 Senningerberg, LuxembourgTel: 352-346390 • Fax: 352-346396

Leumi (Latin America) S.A. MontevideoEdificio World Trade Center, Luis A. de Herrera1248, Torre A, Piso 10, MontevideoTel: 598-2-628-5838 • Fax: 598-2-622-9033E-mail: [email protected] Service Commercial Bank

Punta del EsteAvenida Gorlero, Calle 28, Edif. Torre de lasAmericas, Local 006, Punta del EsteTel: 598-42-444-303 • Fax: 598-42-444-492E-mail: [email protected] Service Commercial Branch

Bank Leumi le-Israel B.M.PanamaCalle Manuel Maria Icaza No. 10Edificio Grobman, Apartado 0819-05593Panama City, Rep. de PanamaTel: 507-263-9377 • Fax: 507-269-2674E-mail: [email protected] Service Commercial Branch

CaracasCentro San Ignacio, Torre Kepler, Piso 4Av. Blandin, La CastellanaCaracas 1060Tel: 58-212-201-8589 • Fax: 58-212-263-7744E-mail: [email protected] Office

CALIFORNIA

ILLINOIS

FLORIDA

CAYMAN ISLANDS

ISRAEL

Bank Leumi le-Israel B.M.

Beverly Hills8383 Wilshire Boulevard, Suite 400Beverly Hills, CA 90211Tel: 1-323-966-4700 • Fax: 1-323-966-4245Full Service Commercial BranchLos Angeles600 Wilshire Boulevard, Suite 1500Los Angeles, CA 90017Tel: 1-213-452-8600 • Fax: 1-213-452-8630Full Service Commercial BranchEncino16530 Ventura Boulevard, Encino, CA 91436Tel: 1-818-379-2700 • Fax: 1-818-986-3021Full Service Commercial BranchPalo Alto2000 University Avenue, Suite 605Palo Alto, CA 94303Tel: 1-650-289-2400 • Fax: 1-650-289-2424Full Service Commercial Branch

Chicago100 North LaSalle Street, Chicago, IL 60602Tel: 1-312-781-1800 • Fax: 1-312-750-1984Full Service Commercial BranchHighland ParkRenaissance Place1849 Green Bay Road, Suite 440Highland Park, IL 60035Tel: 1-847-266-4830 • Fax: 1-847-266-4850Full Service Commercial Branch

AventuraOne Turnberry Place19495 Biscayne Boulevard, Suite 500Aventura, FL 33180Tel: 1-305-918-6960 • Fax: 1-305-918-6975Full Service Commercial Branch / International Private BankingBoca Raton5295 Town Center RoadBoca Raton, FL 33486Tel: 1-561-544-1600 • Fax: 1-561-544-1630Full Service Commercial Branch

Grand CaymanBritish West Indies c/o Bank Leumi USAInternational Customer Service564 Fifth Avenue, 2nd Floor, New York, NY 10036Tel: 1-212-626-1001 • Fax: 1-212-626-1009Limited Service / Specialized Banking

Leumi USA Representative Office:Ackerstein Towers, 11 Hamenofim St.P.O.B. 2148, Herzliya Pituach 46120Tel: 972-9-971-5632 • Fax: 972-9-971-5601E-mail: [email protected]

New York Agencyc/o New York Regional Office562 Fifth Avenue, 2nd FloorNew York, NY 10036Tel: 1-212-626-1355 • Fax: 1-212-626-1366Regional Management


Representative Office in IsraelBeit Nolton, 14 Shenkar StreetP.O.B 2134, Herzliya Pituach 46120Tel: 972-9-955-9571 • Fax: 972-9-955-0662E-mail: [email protected]

Bank Leumi (Luxembourg) S.A.Head Office6D, Route de TrevesL-2633 Senningerberg, LuxembourgTel: 352-346-390 • Fax: 352-346-396E-mail: [email protected] International Private Banking

Paris31 rue Francois 1er, 75008 ParisTel: 33-1-5367-9140 • Fax: 33-1-5367-9144E-mail: [email protected] Office

BerlinTauentzienstrasse 7 b/c, 10789 BerlinTel: 49-30-2579-8804 • Fax: 49-30-2579-8080E-mail: [email protected] OfficeFrankfurtWöhlerstrasse 5, 60323 Frankfurt a.M.Tel: 49-69-288-031 • Fax: 49-69-288-061E-mail: [email protected] Office

Bank Leumi Romania S.A.Bucharest Head OfficeB-dul Aviatorilor nr. 45, Sector 1, BucharestTel: 40-21-206-7075 • Fax: 40-21-206-7050E-mail: [email protected] Service Commercial Bank

MelbourneNovell Building Level 5, 574 St. Kilda Rd.P.O.B 6807, Melbourne 3004 VICTel: 61-3-9529-2022 • Fax: 61-3-9529-2077E-mail: [email protected] Office

Central Building, Room 617Queens Road and Pedder Street, Hong KongTel: 852-2524-0320Cell phone: 61-4-1812-7042E-mail: [email protected] by appointments onlyRepresentative Office

Johannesburgc/o Fluxmans Inc.11 Biermann Avenue Rosebank 2196, JohannesburgTel: 27-11-328-1700 • Fax: 27-11-328-1859E-mail: [email protected] Office

LUXEMBOURG

FRANCE

GERMANY

ROMANIA

australia, asia & africa

AUSTRALIA

HONG KONG

SOUTH AFRICA

MEXICO

CHILE

europe

UNITED KINGDOM

Channel Islands Subsidiaries

SWITZERLAND

Mexico CityFuente de Piramides 1-305Lomas de Tecamachalco53950 Naucalpan, Edo De MexicoTel: 52-555-294-6155 • Fax: 52-555-294-4000E-mail: [email protected] Office

SantiagoTorre Del Bosque, Av. El Bosque Norte 0177Of. 604, Las Condes, SantiagoTel: 56-2-332-0140 • Fax: 56-2-332-0144E-mail: [email protected] Office

Bank Leumi (UK) plcLondon Head Office20 Stratford Place, London W1C 1BGTel: 44-20-7907-8000 • Fax: 44-20-7907-8001E-mail: [email protected] Service Commercial Bank / Private BankingNorth of England RepresentativeMr. Steve Cooper5 Carrwood ParkSelby Road, LeedsWest Yorkshire LS15 4LGTel: +44-7771-522 -907E-mail: [email protected] ABL LimitedPacific House, 126 Dyke Road, Brighton,East Sussex BN1 3TETel: 44-1273-716-200 • Fax: 44-1273-716-210www.leumiabl.co.ukAsset Based Lending and Factoring

Bank Leumi (Jersey) LimitedP.O. Box 510, 2 Hill Street, St. Helier,Jersey JE4 5TR, Channel IslandsTel: 44-1534-702-525 • Fax: 44-1534-617-446E-mail: [email protected] International Private BankingLeumi Overseas Trust Corporation Ltd.P.O. Box 510, 2 Hill Street, St. Helier,Jersey JE4 5TR, Channel IslandsTel: 44-1534-702-500 • Fax: 44-1534-702-570E-mail: [email protected] Trust & Company Management

Bank Leumi (Switzerland) Ltd.Zurich Head OfficeDianastrasse 5, CH-8022 ZurichTel: 41-58-207-9111 • Fax: 41-58-207-9100E-mail: [email protected] International Private BankingGeneva Branch80 Rue du Rhône, 1204 Geneva 3Tel: 41-58-207-3555 • Fax: 41-58-207-3318E-mail: [email protected] International Private Banking



BANK LEUMI ROMÂNIA

Contents

Independent Auditors’ Report

Income Statement

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes Equity

Statement of Cash Flows

Notes to the financial statements

1

2

3

4

5-6

7-66

Bank Leumi Romania S.A.Financial Statements

31 December 2011Prepared in accordance withInternational Financial Reporting Standardsas adopted by the European Union


BANK LEUMI ROMÂNIA

2011 annual report of bank leumi romania · laurenȚiu mitrache executive president chairman of the...

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