Slide 1 June 2008
Karl Sevelda, Member of the Board
Banking considerations for foreign investors in Albania
Slide 2 June 2008
Raiffeisen Banks557 Raiffeisen Banks, 1,695 Affiliated Branches
Regional Raiffeisen Banks8 Regional Raiffeisen Banks, Zveza Bank
The Raiffeisen Banking Group: Three-tier structure
Interests in Austrian
Financial Institutions
Insurers, Investment Fund Companies, Finance Leasing Companies, Building Society,
Raiffeisen Centrobank,Kathrein&Co., Nationalbank,
Kontrollbank, VISA, Europay, etc.
The Network in Central
and Eastern Europe
Raiffeisen International (Shareholders: 68.5% RZB,
31.5% Free Float)
Network Banks,
Leasing Companies,
Other Subsidiaries
Other Foreign Branches, Offices and
Equity Participations
Branches,
Representative Offices,
Banks
Specialist Companiesand Back-Office Companies
Payment Transfer and
Securities Settlers,
IT Companies, Real-Estate
and Trading Companies,
Private Equity Company, etc.
Slide 3 June 2008
RZB Group one of the world's 100 biggest banks delivering strong figures
RZB GROUP
31/12/2007 31/12/2006
Assets (€ bn) 137.4 115.6
RoE before tax (%) 22.2 21.5
Profit before tax (€mn) 1,485 1,286
Customers (mn) 13.6 >12
Staff 61,351 55,434
Outlets 3,036 2,866
> 14 million customers
> 61,000 employees
> 3,000 outlets
36 markets
1 group
Slide 4 June 2008
Asset growth of RZB AG and RZB Group
13.1
23
13.2
33
13.4
49
14.5
50
15.3
20
17.7
78
19.8
67
22.1
09
24.4
37
28.8
86
36.4
68
44.5
84
46.4
05
56.0
53
67.8
64
93.8
64 115.
629 13
7.40
2
0
20.000
40.000
60.000
80.000
100.000
120.000
140.000
Development of total assets of RZB AG and RZB Group in € mn
RZB AG RZB Group
Slide 5 June 2008
Local ranking by total assets
# 1 Albania, Raiffeisen Bank# 1 Serbia, Raiffeisen banka# 2 Bosnia and Herzegovina, Raiffeisen Bank Bosna
i Hercegovina# 2 Kosovo, Raiffeisen Bank Kosovo# 2 Ukraine, Raiffeisen Bank Aval# 3 Belarus, Priorbank # 3 Bulgaria, Raiffeisenbank (Bulgaria)# 3 Romania, Raiffeisen Bank# 3 Slovakia, Tatra banka# 4 Croatia, Raiffeisenbank Austria# 5 Czech Republic, Raiffeisenbank & eBanka# 6 Hungary, Raiffeisen Bank# 7 Russia, Raiffeisenbank Austria & Impexbank
(largest international banking group)# 10 Slovenia, Raiffeisen Banka# 12 Poland, Raiffeisen Bank Polska
THE SUCCESS STORY
Picture: HO RB Albania
Slide 6 June 2008
RB Albania
2004 2007 Difference in %
Total assets: EUR 1,647 mln EUR 1,947 mln + 18.8%
Total loans: EUR 7.5 mln EUR 486 mln + 6,380.0%
Total liabilities: EUR 1,605 mln EUR 1,860 mln + 15.9%
Number of employees 1,026 1,373 + 33.8%
Number of branches 84 96 + 14.3%
Number of customers 300,644 552,193 + 83.7%
Debit cards 6,666 183,565 + 2,653.8%
ATM 31 154 + 396.8%
POS N/A 353 n.a.
Slide 7 June 2008
International Desk Concept
Account opening services Working Capital Finance Financing long-term investments Financing acquisitions and/or start-ups Cash management services Trade Finance (L/C, L/G etc.) Export Finance with export promotion programs Project & structured finance/Real Estate Investment products Leasing / Factoring Personal banking services for customers' employees FX Business
15 MARKETS, ONE SERVICE LEVEL
Slide 8 June 2008
Other value adding services English speaking staff
Mrs. Adriana Jorgji/ Head of Int. Desk Albania
Tel.: +355 4 2222 669 – 2545
Contacts to local authorities
Referral of CPAs and law firms
Support in founding a business
Search of suitable production sites and objects
Subsidy programmes
Networking and lobbying15 MARKETS, ONE SERVICE LEVEL
Slide 9 June 2008
Albania – A lot of room/need to catch up!
GDP per capita (at PPP) in % of EU-27 avgSource: wiiw, Raiffeisen RESEARCH
0%10%20%30%40%50%60%70%80%90%
100%110%
PL
HU
CZ SK SI
RO
BG
HR
RS
BA AL
RU
UA BY
CE SEE CIS2000 2007
Portugal
GreeceSpain
Slide 10 June 2008
High GDP growth rates
Albania real GDP growth (% yoy)
0
1
2
3
4
5
6
7
8
2000 2001 2002 2003 2004 2005 2006 2007 2008e 2009f 2010f 2011f 2012f
Source: Raiffeisen RESEARCH
Slide 11 June 2008
To be considered for investors …
Standard of legal system/ Independency of justice
Bureaucratic procedures (registration of land ownership, approval of construction permissions, etc.)
Lack of infrastructure (Poor roads, electricity/ power cuts, ..)
Low Standard of Social System
Slide 12 June 2008
Positive factors to be considered
Upcoming privatization process High GDP growth rates Efforts to reduce administrative obstacles Fast registration of business (8 days) 10% corporate tax Signed Double Taxation Agreement with
Austria (in force by 2009/01/01)