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Bank and MFI market inKosova

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Bank and MFI Sector in Kosova

In the December 2007, excluding the CBAK, the Kosova

Bank and MFI sector was composed of :

8 Commercial Banks

16 Micro Finance Institutions MFI

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Banks and MFIs ASSETS:

Total Banking Sector assets reached euro1,449 mill (1,4 billion euro)

MFIs assets reached around 112 million

euro

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II. BANKING SECTORStructure of Banking Sector

The banking sector in Kosova consists of six banks and two bankbranches.

In August 2007, the CBAK granted the license of operation to twonew bank branches: Banka Kombetare Tregtare (BKT) andKomarcijalna Banka.

In September 2007, Turk Ekonomi Bankasi (TEB) was granted a

preliminary license by CBAK.

Expansion of the sector by new banks is expected to increase thecompetition in Kosova banking sector.

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Banks that actually operate in Kosova financial market are asfollows:

Banka Ekonomike

Banka per Biznes PCB Pro Credit Bank Raiffeisen Bank NLB Prishtina/*- (CBAK has approved the merger between

NLB-Kasabank and NLB-Banka e Re. The shareholder structure

of NLB Prishtina are Nova Ljubljanska Banka with 8o, 39%and other shareholders individual and companies from Kosova19.61%.

Turk Ecomnomi Bankasi Sh.ATEB Banka Kombetare Tregtare Komercialna Banka

In the next slide are presented the contribution of each bank to total banksassets, deposits, loans and equity, as of 31 December 2007 and 31March 2008

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31.12.2007

Banks PCB RBKO

NLB/

TEB BPB BE BKT

ALL

PR BANKS*

Assets 549,663 476,997 199,654 41,192 56,003 8,941 1,332,450

Loans 333,650 330,071 106,821 22,543 30,792 823,877

Deposits 493,900 395,810 161,258 32,996 44,505 4,022 1,132,491

NetProfit 16,289 14,681 645 (875) 3,667 18 (91) 34,334

Equity 41,594 58,916 25,360 7,175 10,866 4,032 147,943

Weight PCB RBKO

NLB/

TEB BPB BE BKTALLBANKSPR

Assets 41.25 35.80 14.98 3.09 4.20 0.67 100

Loans 40.50 40.06 12.97 2.74 3.74 100

Deposits 43.61 34.95 14.24 2.91 3.93 0.36 100

NetProfit 47.44 42.76 1.88 (2.55) 10.68 0.05 (0.27) 100

Equity 28.11 39.82 17.14 4.85 7.34 2.73 100

(000.00)

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31.03.08(000.00)

Banks PCB RBKO

NLB/

TEB BPB BE BKT

ALL

PR BANKS*

Assets 558,432 503,854 196,301 13,545 43,010 67,190 9,296 1,391,628

Loans 363,751 349,873 110,700 4,768 23,876 41,313 33 894,314

Deposits 482,927 415,248 156,817 2,553 34,968 55,204 4,474 1,154,681

Net Profit 4,553 4,078 1,112 (779) 170 380 -94 9,420

Equity 45,940 61,282 26,471 8,346 7,345 11,246 4,815 165,445

Weight PCB RBKO

NLB/

TEB BPB BE BKTALL

BANKSPR

Assets 40.1 36.2 14.1 1 3.1 4.8 0.7 100

Loans 40.7 39.1 12.4 0.5 2.7 4.6 0 100

Deposits 41.8 36 13.6 0.4 3 4.8 0.4 100

Equity

27.8

37

16

5

4.4

6.8

2.9

100

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Differences (31.12.07/31.03.08)

Banks PCB RBKO

NLB/

TEB BPB BE BKT

ALL

PR BANKS*

Assets 8,769 26,857 -3,353 13,545 1,818 11,187 355 59,178

Loans 30,101 19,802 3,879 4,768 1,333 10,521 33 70,437

Deposits (10,973) 19,438 (4,441) 5,043 1,972 10,699 452 22,190

Equity 4,346 2,366 1,111 -1,654 170 380 783 7,502

(000.00)

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Assets market share/ as of 31 March

2008

40%

36%

14%

1%

3%

5% 1%

PCBRBKO

NLB PR

TEB

BPB

BE

BKT

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Loan figures/Market share as of 31

March 2008

40%

39%

12%

1%

3%

5% 0% PCB

RBKONLB PR

TEB

BPB

BE

BKT

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Deposit figures/Market Share as of

31 March 2008

36%

14%

0%

3%

5%

42%

0% PCB

RBKO

NLB PR

TEB

BPB

BE

BKT

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Banks offer they services through:

Branches/sub-branches

ATMs

POS

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Banking network on 2005 and 2006

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Current Banking Network/FEB 2008

0

10

20

30

40

50

60

BRANCHES

SUB BRANCHES

BRANCHES 7 7 7 7 1 9 2

SUB BRANCHES 24 10 40 30 55 1

BPB BE PCB RBKO BKT NLB TEB

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Number of ATMs in Market

PCB RBKO NLB BPB BE BKT TEB Total

2002 11 8 19

2003 14 0 14

2004 11 8 19

2005 16 18 5 39

2006 0 12 7 10 29

2007 14 7 15 36

2008 16 6 8 5 2 37

Waiting to beinstalled thisyear 31 15 10 2 12 67

Total 113 74 30 15 15 2 14 263

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What does network and ATM

expansion means:

Micro client orientation

Service competition (not price competition)/Easy access to banks

Marketing

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4. Microfinance Institutions (MFI)

Currently, there are 16 MFI operating in Kosova. InMarch 2008, the loans of MFI amounted Euro 73,710million,

The average amount of loan granted by MFI in March

08, was 1,613 Euro that represent the annual decrease of6.5% (average loan in Dec 07 was Euro 1,724)

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31-Dec-07 31-Mar-08 DIFFERENCES

PortfolioOutstanding Nr. Clients Portfolio Outstanding Nr. Clients

PortfolioOutstanding Nr. Clients

KRK 8,161,632.00 5431 8,875,212.00 5548 713,580.00 117

AFK 4,615,923.00 2080 5,814,033.00 2174 1,198,110.00 94

BESLIDHJA 3,177,715.00 1605 3,445,000.00 1664 267,285.00 59

FINCA 12,762,681.00 11123 13,188,703.00 11260 426,022.00 137

KEP 26,203,312.00 12779 29,881,074.00 14289 3,677,762.00 1510

KOSINVEST 1,759,246.00 1708 1,894,651.00 1870 135,405.00 162

KOSOVAGRAMEER 4,216,307.00 5790 3,986,549.00 5975 (229,758.00) 185

START 837,987.00 1412 854,217.00 1523 16,230.00 111

ACP 355,569.00 35 342,472.00 40 (13,097.00) 5

QELIM 116,305.00 42 154,673.00 118 38,368.00 76

TOTAL 62,206,677.00 42005 68,436,584.00 44461 6,229,907.00 2456

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Loan figures/Market share as of 31

December 2007

13%7%

21%

3% 7%

1%

1%

42%

5%

KRK

AFK

BESLIDHJA

FINCA

KEP

KOSINVEST

KOSOVAGRAMEERSTART

ACP

QELIM

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Clients figures/Market share as of 31

December 2007

5%4%

26%31%

4%

14%

13%3%

KRK

AFK

BESLIDHJA

FINCA

KEP

KOSINVEST

KOSOVA GRAMEERSTART

ACP

QELIM

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Loans figures/Market share as of 31

March 2008

13%1%3%

1%

19%

8%6%

44%

5%

KRK

AFK

BESLIDHJA

FINCA

KEP

KOSINVEST

KOSOVA

GRAMEERSTART

ACP

QELIM

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Clients figures/Market share as of 31

March 2008

5%

4%

12%

26%33%

4%

13%

3%

KRK

AFK

BESLIDHJA

FINCA

KEP

KOSINVEST

KOSOVAGRAMEERSTART

ACP

QELIM

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From numbers above, ensue that those microfinanceinstitutions provided 18% of totally active clients in wholecountry while the amount provided to those clients

comprised only 7.28% of total value of loans provided bycommercial banks.

The average loan size of MFIs is about 1,622 euro, while theaverage loan size of commercial banks is around 4,000 euro,

According to the portfolio size, KEP is the biggestmicrofinance in Kosova reaching around euro 29,881 millionin March 2008, which is around 4o.45 % of total MFIs

portfolio, while in terms of number of active clients KEPreached 31,45 % compare to total number of MFIs activeclients.

Note: there are missing data for some MFIs

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FLM