Quarterly Report • May 17, 2022
Quarterly Report
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Quarterly Report
PATRIA BANK S.A.
March 31, 2022
Report prepared according to the FSA Regulation no. 5/2018 Report date: 16.05.2022 Company name: PATRIA BANK S.A. Registered office: Bucharest, District 2, 42 Pipera Road, Globalworth Plaza, floors 8 and 10 Phone/fax: 0800 410 310 / 0372 007 732 Tax identification number: RO 11447021 Trade Register number: J40/9252/2016 Issued and paid-in share capital: RON 327,881,437.60 Regulated market on which the issued shares are traded: Bucharest Stock Exchange - Premium category Main characteristics of the securities issued by the trading company: nominal value of RON 0.1
This version of the accompanying documents is a translation from the original, which was prepared in Romanian. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of information, views and opinions, the original language version of our report takes precedence over this translation.
| 1. | Disclosure requirements 3 | |
|---|---|---|
| 2. | Important events that took place during the first 3 months of 2022 and their impact on the financial results 3 |
|
| 2.1 Macroeconomic and banking environment aspects 3 | ||
| 2.2 Commercial and operational aspects 7 | ||
| 2.3 Financial Results 11 | ||
| 2.4 | Financial-economic main ratios (individual level) 14 | |
| 3. | The activity of the Bank's subsidiaries 14 | |
| 4. | Other information and statements 16 | |
| 5. | Significant transactions 19 | |
| 6. | Significant litigations 19 | |
| 7. | Subsequent events after 31.03.2022 19 | |
| 8. | Annexes 19 |
This Report meets the disclosure requirements of Law no. 24/2017 on issuers of financial instruments and market operations, Regulation of the Financial Supervisory Authority (FSA) no. 5/2018 on issuers of financial instruments and market operations and the Bucharest Stock Exchange Code.
Financial results as of March 31, 2022 for the first quarter of the year show a net profit of RON 882 Thousand, coming mainly from the favorable evolution of the operating revenues related to interest and commission income (main activity of the Bank), but also from a contraction of the depreciation adjustments of the financial assets.
The consolidation of the profitability level, with positive results for the first three months of 2022 within an unfavorable macroeconomic context, represents the confirmation of the viability of the business model materialized in the following financial benchmarks reached on March 31, 2022:
The Government ended the first three months with a budget deficit of RON 15.7 Billion, RON 1 Billion more than RON 14.63 Billion in the same period of last year. As share of GDP, the deficit decreased by 0.05 percentage points, from 1.24% of GDP in January-March 2021 to 1.19%.
Revenues for the first three months of this year are up 21.3% from last year, while the expenses are also up 19.2%. There is a decrease in the revenues coming from tax on profit by 74%, an increase in VAT revenues by 39%, but also an increase in interest expenses by 61% up to RON 5.76 Billion, while personnel expenses have not changed significantly.
Public investment expenditures were 4.3% higher in Q1 2022 than in Q1 2021. According to our estimates, against the background of very high levels recorded in January and March (but fueled also by temporary factors), the public deficit in Q1 2022 represented 8.1% of the estimated GDP level for this quarter, being higher than the level recorded in Q4 2021 (7.3% of GDP), Q3 2021 (4.9% of GDP) and Q2 2021 (6.1 % of GDP), but close to the level recorded in Q1 2021 (8% of GDP). The government intends to reduce the public deficit to 5.8% of GDP in 2022 from 6.8% of GDP in 2021. In the current economic and geopolitical context, we believe that achieving this target will be a major challenge for the government.
The deficit was financed in the first quarter of 2022 by issuing bonds, both on the local and foreign markets. In January, the MPF managed to raise about EUR 4.70 Billion from Eurobonds (EUR 2.5 Billion and USD 2.4 Billion). The total target for Eurobond issues in this year was set at EUR 10 Billion. From the domestic market, during the first 3 months of the year MPF attracted approximately RON 13.25 Billion, slightly above the value announced in the prospectus of RON 12.50 Billion. It should be noted that the yields on which the state has borrowed have steadily increased since the beginning of the year, both due to inflationary pressure and the conflict in Ukraine.
In terms of economic growth, the level of GDP in Q4 2021 was 2.4% YoY and -0.1% QoQ; the developments suggest the materialization of a real GDP advance in Q1 2022 compared to Q4 2021. On the other hand, the economic growth forecast for Romania has been revised downwards by most international institutions.
The International Monetary Fund (IMF) has substantially reduced its global economic growth forecasts for 2022 and 2023 amid the negative impact of the war between Russia and Ukraine. The IMF also believes that European countries will be hardest hit by the war in Ukraine, especially through indirect channels such as inflationary pressures and blockages in global production and distribution chains.
Thus, for Romania, the IMF reduced its forecast to 2.2% from 4.8% in October 2021. The IMF also expects the Romanian economy to grow by 3.6% in 2023. At the same time, the World Bank reduced last week the growth forecast for Romania for 2022 to 1.9% from 4.3% in the previous forecast. However, the World Bank now estimates slightly faster economic growth in 2023 of 4.1%, while in 2024 Romania's real GDP is expected to advance by 4.3%.
In the first quarter of the year, the NBR continued its cycle of increasing the monetary policy rate, which began in the last quarter of last year (when the rate doubled from a minimum of 1.25%).
If at the beginning the increase was of 25 basis points, this year there were two consecutive increases of 50 basis points, the interest rate of BNR now reaching 3%. In the current context, we expect core inflationary pressures to remain high in the coming quarters, fueled by large increases in global commodity prices and the migration of price increases for electricity, gas and fuel to other prices within the economy.
The central bank said it expected the annual inflation rate to "rise more sharply in the coming months than the expectation from February, under the impact of supply-side shocks". The NBR's inflation forecast published in May set the annual inflation rate at 13.8% in April and 12.50% at the end of the year. The next inflation forecast is due to be published by the central bank in May. At the same time, the NBR highlights the fact that the uncertainty and risks to medium-term inflation forecasts are very high. In the context of the very high domestic core inflationary pressures expected to materialize in the next period, but also of the considerable strengthening of the monetary policies characteristics in the region, we expect that the cycle of increasing the monetary policy interest rate in Romania will continue at a sustained pace. We expect the NBR to increase the monetary policy interest rate at the next sessions also until January 2023, when it could reach 5.0%. We also see possible increases by 50 basis points in the reference interest rate at the next two monetary policy meetings scheduled for May 10 and July 6.
Inflationary pressures are being felt across the European Union and the United States, prompting all central banks to react. Thus, the FED raised interest rates for the first time in March from 0.25% to 0.50% and predicted that by the end of the year the monetary policy interest rate would be in the range of 1.75%. and 2.00%, an aggressive approach given that the inflation rate is at its highest level in 40 years.
On the other hand, the ECB has decided to gradually reduce its asset acquisition program (APP) to EUR 40 Billion in April, EUR 30 Billion in May and EUR 20 Billion in June. The calibration of net acquisitions for the Q3 will depend on the ratios and will reflect the evolution of the outlook assessment. If the new data supports the anticipation that the medium-term inflation outlook will not deteriorate even after the cessation of its net asset acquisitions, the Governing Council will conclude its net acquisitions under the APP in Q3. Any adjustments to the ECB's representative interest rates will take place after a period following the cessation of the Governing Council's net acquisitions under the APP and it will be gradual.
Considering the countries in the region, we see an accelerated increase in monetary policy rates in an attempt to combat the inflationary pressures caused by rising prices, especially for energy and agricultural products caused by the war in Ukraine. The Central Bank of Poland has increased the rate from 0.50% in October 2021 to 5.25% in May 2022. In Hungary this rate has reached 5.40% after 11 consecutive increases, and in the Czech Republic it is now 5%.
The average rate of non-performing loans (NPLs) in the Romanian banking system decreased in 2021 to 3.35%. This level is the lowest level from 2014 to date.
According to the latest available statistics, in October 2021 the NPL rate dropped to 3.52%, the lowest level in 2021, but also in the last decade, after fluctuating in the spring months of 2021 around 3.9 % of total loans. Basically, the NPL rate fell in October to its lowest level since 2009, when the signs of the global financial crisis were felt in the local market. In comparison, in 2014 the NPL rate exceeded 20% of total loans.
But the average rate of non-performing loans in the Romanian banking system could return to growth in 2022. Problems may arise if some borrowers - individuals or companies - affected by the negative economic impact of the Covid-19 crisis and the sharp rise in prices fail to resume the payment of deferred loans, after the expiration of the payment deferral, but also if those who have not postponed their loans in 2020 and 2021 will encounter problems with the payment of installments starting with 2022.
The financial health indicators of the banking sector remained at adequate levels during the Covid-19 pandemic period, at a similar or better level compared to the European averages, giving an increased capacity to absorb possible shocks. The results of the Solvency and Liquidity Stress Testing Exercises show the banking sector's kept ability to manage key risks that could materialize in the context of high-severity macroeconomic developments.
The total own funds ratio stood at 22.26% in December 2021 (compared to an average of 19.6% in EU Member States), while the liquidity coverage ratio rose to 238.57% in December 2021, compared to 172.4% in the EU.
The balance of non-governmental loans granted by credit institutions increased in February 2022 by 1.3% compared to January 2022 (0.7% in real terms). Loans in RON, with a share of 72.5% in the total volume of non-governmental loans, increased by 1.7%, and credit in foreign currency expressed in RON, with a share of 27.5% in total non-governmental loans, increased by 0.3% (similar evolution in case the ratio is expressed in Euro).
Compared to the same period of 2021, the non-governmental loans registered an increase of 15.8% (6.7% in real terms), due to the 20.1% increase of the component in RON (10.7% in real terms) and the increase by 5.9% of the component in foreign currency expressed in RON (4.3% if the ratio is expressed in Euro).
Deposits of non-governmental resident clients increased in February 2022 by 0.5% compared with the previous month, and by 12.6% compared to the same period of last year (3.7% increase in real terms). Deposits of residents in RON, with a share of 63.7% in total deposits of non-governmental clients, decreased by 0.2% compared to January 2022. Compared to February 2021, these deposits increased by 10.4% (1.7% in real terms). Deposits of households in RON registered a decrease of 0.4% compared with the previous month and increase by 6.4% (-1.9% in real terms) compared to the same period of last year.
Deposits of residents in foreign currency, expressed in RON, representing 36.3% of the total volume of deposits of non-governmental clients, increased by 1.7% compared with January 2022 (if expressed in EUR, these deposits increased by 1.7%). Compared with February 2021, the ratio expressed in RON increased by 16.6% (14.8% if expressed in EUR). Foreign currency deposits of households, expressed in RON, increased by 1.3% compared to January 2022 (similar evolution if expressed in EUR). Compared with the same period of 2021, the increase of this ratio expressed in RON was of 12.9% (11.2% if expressed in EUR).
In Q1 2022, the exchange rate of the national currency Leu against the single European currency (EUR) varied around 4.9400 - 4.9500, NBR protecting the level of 4.9500 against the background of the pressure to buy arising from the war in Ukraine.
Regarding the medium and long-term interest rate curve, they are related to the NBR's lending interest rate, given the liquidity crisis that has been manifesting in the money market since the beginning of the conflict in Ukraine and incorporate the monetary policy interest rate increases further expected this year.
Regarding the interest on deposits vs. interest on loans corridor, it maintains its margin of - / + 1% around the reference interest rate of monetary policy and we do not see any change in this instrument either.
On the commercial level, the Bank continued to be an active participant in the specific segments of legal entities representative for its activity (SMEs & Corporate, Microenterprises and Agro). The addressability continued both in the urban area (with the presence of branches) and in the rural area, through the mobile sales force and dedicated collection and through a superior collaboration with the territorial units of Patria Credit IFN, member of the Group.
The evolution of the performing loans balance (stage 1 and 2 according to IFRS 9) shows an increase of 16%, +276 Million compared to March 2021 and of RON 72 Million compared with end of 2021. The increase of the balance of performing loans was registered on all lines of activity of the bank. The most accelerated trend of balance growth in March 2022 compared to March 2021 was registered on SME (+23%), Corporate (+21%) and Retail (19%) and in March 2022, compared to December 2021, on Corporate (+5.6%) and Retail and Micro with a 3.4% increase in both cases.
In Q1 2022, the lending activity generated new loans of approximately RON 193 Million, with superior dynamics in the Retail area (+14% on guaranteed loans and +22% on unsecured loans in Q1 2022 compared to Q1 2021).
The bank has accelerated the growth strategy of the Retail segment (individuals), mainly in urban areas, both by optimizing consumer credit granting flow (automated decision, implementation of a pricing methodology), by launching of a new product - Consumer credit intended exclusively for refinancing (for a period of 7 years), and especially by increasing the mortgage loans segment. Thus, in Q1 2022, the Bank registered an increase of 18% in new loans granted to individuals, with a more pronounced evolution in the segment of unsecured loans (+ 22%).
For the Micro activity line, there is an increase of the credit production similar with the level registered in Q1 2021. The Bank continued the program developed together with the European Investment Fund (EIF)
Patria Bank S.A. –Bucharest, District 2, Globalworth Plaza Building, Pipera no 42, floors 8 and 10; ORC: J40/9252/2016, C.I.F. RO 11447021, RB-PJR-32-045/15.07.1999. Share Capital social: 327,881,437.60 lei; Patria Bank is registered by the National Supervisory Authority for Personal Data Processing – ANSPDCP – with the notification no. 753; FSA register number: PJR01INCR/400026 from 28.03.2019 Tel: 0800 410 310 | Fax: +40 372 007 732| [email protected] | www.patriabank.ro 7 | P a g e
and ensured, with the support of partners, the possibility of doubling the maximum amount granted to a debtor (RON 240,000 / debtor) with an EIF guarantee coverage degree of 80%. At the end of Q1 2022, the cumulative financing on the Easi product reached the level of approx. RON 552 Million at Bank level and approx. RON 639 Million at the Group level. There was also a positive trend in the number of customers using the Bank's Internet Banking platform.
The SME and Corporate Segment. In Q1 2022, on the Corporate segment it was registered a increase of 5.6% of the balance of performing loans compared to the end of 2021 and on the SME segment an increase of 2.7%. For a better customer service, specialized departments have been created to respond easily and pragmatically to the needs of companies; thus, the SME area offers mainly a standardized approach with an emphasis on speed and the Corporate area addresses companies with complex needs, having an approach adapted to the typology of activities carried out by companies with a complex business profile.
The SME customer segment continued to be supported in order to reduce the negative effects of the Covid-19 pandemic, as well as the macroeconomic context generated by the war in Ukraine. Thus, customers were approached to assess the impact of the general situation, being offered financing solutions to reduce the risks they face in this context, but also to improve the economic performance of companies by financing working capital and investments necessary in in order to streamline the activity.
On the corporate customers segment, the monitoring efforts were increased in order to evaluate the possible negative effects generated by the economic and geopolitical context. At the same time, a series of visits were made with company representatives and products and services adapted to the constantly changing complex needs were offered each time, in an attempt to support the economic activity carried out by customers, but also to improve the profitability generated by the corporate customers segment.
In Q1 2022, Patria Bank was also active in financing the agricultural field, being among the first banks to sign financing agreements with the Agency for Payments and Intervention for Agriculture, both in the animal and plant sectors. The 15-year credit for land acquisition and the APIA SAPS PLUS product were also relaunched and the process of financing agriculture continued by adapting products and services to current market requirements.
Patria Bank continued its support for those economic sub-sectors still affected by the crisis, continuing its major roles assumed since the outbreak of the Covid-19 Pandemic, by:
both through the permanent operation of the branches and the ATM network,
Particular attention was also paid to the qualitative management of the loan portfolio, especially to exposures with deferred installments as a result of the impact of the Covid 19 pandemic on the activity of entrepreneurs. At the end of the period, most of these exposures are classified in the category of performing loans. Last but not least, a complete servicing of credit and non-credit clients was ensured by providing quality services, maintaining the objective of the Patria Bank Group to increase the financial inclusion on this segment of clients.
Patria Bank continued the series of transformations of traditional banking in the direction of solutions already developed around new technologies - internet banking / mobile banking: contactless payments, biometric authentication for cards and authentication / authorization through biometric methods for Mobile Banking, implementation of the instant payments service, the fastest and most modern interbank payment service, available non-stop and with immediate execution, the implementation of a Personal Finance Manager module available for the Internet Banking for Individuals service through which customers can organize and view their budget according to their own rules, implementing a module dedicated to Asset Managementservices, available within the Internet Banking forIndividuals service, the development of an API service through which the bank provides to the Legal Entities clients information about the transactions executed in their accounts through an automated service, enrollment and provision of online non-credit products or in the direction of certain solutions that have been tested / are
Patria Bank S.A. –Bucharest, District 2, Globalworth Plaza Building, Pipera no 42, floors 8 and 10; ORC: J40/9252/2016, C.I.F. RO 11447021, RB-PJR-32-045/15.07.1999. Share Capital social: 327,881,437.60 lei; Patria Bank is registered by the National Supervisory Authority for Personal Data Processing – ANSPDCP – with the notification no. 753; FSA register number: PJR01INCR/400026 from 28.03.2019 Tel: 0800 410 310 | Fax: +40 372 007 732| [email protected] | www.patriabank.ro 9 | P a g e
in the testing period and will be launched in the immediate period of 2022 (online granting of consumer loans for individuals without a mortgage, updating personal data online in case of individual customer).
In addition to external solutions and services, directly visible to customers, Patria Bank is actively working to improve internal digitization and automation processes, both through third-party solutions, such as the integration of RPA processes in various pilot areas of the Bank, as well as by implementing automated or semi-automated flows, as the case may be, whether they are alerts, notifications or other developments that can add value to both business and operational processes.
Operationally, Patria Bank will continue in 2022 its digital strategy focused on innovation but also on the area of experience of the bank's clients. Thus, Patria Bank continues to diversify its entire range of products and services, continuing to implement relevant optimization and digitization projects in the current market context, projects that come to support and strengthen all the objectives agreed in the Bank's strategy plan. During Q1 2022, the Bank continued the processes of optimization, development of interaction flows with remote customers and digitization, the main initiatives with an impact on the Commercial area being:
| FINANCIAL POSITION | |||||||
|---|---|---|---|---|---|---|---|
| -thousands RON | |||||||
| ASSETS | mar.22/ | mar.22/ | mar-22/ mar | mar 22/ mar | |||
| 31.mar.22 | 31.dec.21 | dec.21 (abs.) | dec.21 (%) 31.mar.21 | 21 (abs.) | 21 (%) | ||
| Cash and cash equivalents | 364,645 | 497,316 | (132,671) | (26.7%) | 381,238 | (16,593) | (4%) |
| Loans and advances to banks | 8,123 | 5,834 | 2,289 | 39.2% | 5,602 | 2,521 | 45% |
| Securities | 989,899 | 961,696 | 28,203 | 2.9% | 814,091 | 175,808 | 22% |
| Investments in subsidiaries | 34,296 | 34,296 | - | 0.0% | 34,296 | - | 0% |
| Loans and advances to customers, net | 2,095,822 | 2,028,911 | 66,911 | 3.3% 1,844,805 | 251,017 | 14% | |
| Other assets | 284,245 | 298,036 | (13,791) | (4.6%) | 298,527 | (14,282) | (5%) |
| Total ASSETS | 3,777,030 | 3,826,089 | (49,059) | (1.3%) 3,378,559 | 398,471 | 12% | |
| LIABILITIES | 31.mar.22 | 31.dec.21 | mar.22/ dec.21 (abs.) |
mar.22/ | dec.21 (%) 31.mar.21 | mar-22/ mar 21 (abs.) |
mar 22/ mar 21 (%) |
| Due to banks & REPO | 105,891 | 18,312 | 87,579 | 478.3% | 47,464 | 58,427 | 123% |
| Due to customers | 3,198,227 | 3,314,846 | (116,619) | (3.5%) 2,842,857 | 355,370 | 13% | |
| Other liabilities | 60,995 | 67,575 | (6,580) | (9.7%) | 58,192 | 2,803 | 5% |
| Subordinated debt | 10,082 | 24,797 | (14,715) | (59.3%) | 24,998 | (14,916) | (60%) |
| Debt securities in issue | 63,187 | 64,174 | (987) | (1.5%) | 62,567 | 620 | 1% |
| Total Liabilities | 3,438,382 | 3,489,704 | (51,322) | (1.5%) 3,036,078 | 402,304 | 13% | |
| Total Equity | 338,648 | 336,385 | 2,263 | 0.7% | 342,481 | (3,833) | (1%) |
| Total LIABILITIES AND EQUITY | 3,777,030 | 3,826,089 | (49,059) | (1.3%) 3,378,559 | 398,471 | 12% |
| - RON Thousand- | 31.mar.22 | 31.dec.21 | mar.22/ dec.21 | 31.mar.21 | mar 22/ mar-21 | ||
|---|---|---|---|---|---|---|---|
| Gross loans | 2,223,835 | 2,159,648 | 64,188 | 3% | 1,985,675 | 238,160 | 12% |
| Performing loans | 2,035,122 | 1,963,164 | 71,958 | 4% | 1,760,073 | 275,049 | 16% |
| Non-performing loans | 188,713 | 196,483 | (7,770) | -4% | 225,602 | (36,889) | -16% |
| Impairments | (128,013) | (130,736) | 2,723 | -2% | (140,871) | 12,858 | -9% |
| Performing loans impairments | (31,559) | (29,320) | (2,239) | 8% | (28,079) | (3,480) | 12% |
| Non-performing loans impairments | (96,454) | (101,416) | 4,962 | -5% | (112,791) | 16,337 | -14% |
| Net loans | 2,095,822 | 2,028,911 | 66,911 | 3% | 1,844,805 | 251,018 | 14% |
| Net performing loans | 2,003,563 | 1,933,844 | 69,719 | 4% | 1,731,994 | 271,569 | 16% |
| Net non-performing loans | 92,259 | 95,067 | (2,808) | -3% | 112,811 | (20,552) | -18% |
Patria Bank S.A. –Bucharest, District 2, Globalworth Plaza Building, Pipera no 42, floors 8 and 10; ORC: J40/9252/2016, C.I.F. RO 11447021, RB-PJR-32-045/15.07.1999. Share Capital social: 327,881,437.60 lei; Patria Bank is registered by the National Supervisory Authority for Personal Data Processing – ANSPDCP – with the notification no. 753; FSA register number: PJR01INCR/400026 from 28.03.2019 Tel: 0800 410 310 | Fax: +40 372 007 732| [email protected] | www.patriabank.ro 11 | P a g e
registered a decrease of RON 3 Million (-3%), due to the write-off operations of fully impaired non-performing loans;
• Debt due to customers shows a decrease of 3.5% (RON +117 Million) compared to December 2021, against the background of the war in Ukraine but also due to the rising inflation and the existence of other investment alternatives in the market.
At the individual level, the capital adequacy ratio (Total Own Funds Ratio) is 18.3%, exceeding the regulatory limit, registering a slight decrease compared to the end of 2021 when the level of 19.1% was registered; the evolution is justified by the decrease of the reserves from the mark-to-market of the debt instruments in the current macroeconomic context at the level of the banking system.
At consolidated level, the capital adequacy ratio (Total Own Funds Ratio) is 17.6%, exceeding the regulatory limit.
The Total Own Funds Ratio both at individual and consolidated level does not incorporate the profit obtained by the Bank, respectively by the Patria Bank S.A. Group, as it is not audited, a mandatory condition for its incorporation in Own Funds. Thus, the consolidation of the Total Own Funds Ratio will be performed at the end of the year by including the profits obtained by the Bank and by the Group.
| FINANCIAL PERFORMANCE STATEMENT | 3 months up to 3 months up to | Δ 2022/ 2021 | Δ 2022/ 2021 | |
|---|---|---|---|---|
| -thousands RON- | 31.mar.22 | 31.mar.21 | (abs.) | (%) |
| Net interest income | 29,761 | 25,520 | 4,241 | 17% |
| Net fees and commission income | 7,052 | 6,652 | 400 | 6% |
| Net gains from financial activity & other income | 4,778 | 9,033 | (4,255) | (47%) |
| Net banking Income | 41,591 | 41,205 | 386 | 1% |
| Staff costs | (17,050) | (15,322) | (1,728) | 11% |
| Depreciation and amortization | (5,317) | (5,499) | 182 | (3%) |
| Other operating and administrative expenses | (12,743) | (10,011) | (2,732) | 27% |
| Total operating expense | (35,110) | (30,832) | (4,278) | 14% |
| Operating Result | 6,481 | 10,373 | (3,892) | (38%) |
| Net impairment of financial assets | (4,174) | (9,048) | 4,874 | (54%) |
| Gain/ (Loss) before tax | 2,307 | 1,325 | 982 | 74% |
| Expense from deffered tax | (1,425) | (872) | (553) | 63% |
| Gain/ (Loss) for the year | 882 | 453 | 429 | 95% |
• Net banking income remains at a level similar to Q1 2021, determined by the evolution of revenues from financial activity affected by market conditions and which shows a contraction of 47%, RON -4.3 Million; However, the income from the basic activity of the Bank, represented by the income from interest and commissions, shows a positive evolution in line with the development of the balance sheet, fully covering the contraction of the income from the financial activity.
Patria Bank S.A. –Bucharest, District 2, Globalworth Plaza Building, Pipera no 42, floors 8 and 10; ORC: J40/9252/2016, C.I.F. RO 11447021, RB-PJR-32-045/15.07.1999. Share Capital social: 327,881,437.60 lei; Patria Bank is registered by the National Supervisory Authority for Personal Data Processing – ANSPDCP – with the notification no. 753; FSA register number: PJR01INCR/400026 from 28.03.2019 Tel: 0800 410 310 | Fax: +40 372 007 732| [email protected] | www.patriabank.ro 12 | P a g e
• Income from loan interests increased by 16% (RON +5 Million) in Q1 2022 compared to the same period of 2021, in line with the development of the portfolio of performing loans, increasing efficiency in commercial activity and diversifying the mix of products.
An upward trend is also shown for income from debt instruments interest of +30% or RON +1.4 Million, generated by the increase of the government bond portfolio by RON +28 Million (+ 3%) and also by improving the mix of maturity and yield of the portfolio.
| 3 months up to 3 months up to | Δ 2022/ 2021 | Δ 2022/ 2021 | ||
|---|---|---|---|---|
| 31.mar.22 | 31.mar.21 | (abs.) | (%) | |
| Interest income | 43,231 | 36,614 | 6,617 | 18% |
| Loans | 36,812 | 31,773 | 5,039 | 16% |
| Debt securities | 6,123 | 4,723 | 1,400 | 30% |
| Other interest bearing assets | 296 | 119 | 177 | 150% |
| Interest expense | (13,470) | (11,094) | (2,376) | 21% |
| Due to cutomers | (11,768) | (9,448) | (2,320) | 25% |
| Other interest earning liabilities | (1,703) | (1,647) | (56) | 3% |
| Net interest income | 29,761 | 25,520 | 4,241 | 17% |
The Bank also considered a prudent level of impairment adjustments to anticipate possible risks that may arise in 2022 in the current macroeconomic context.
The net result for Q1 2022 shows an increasing evolution compared to Q1 2021 of 95%, from RON 453 Thousand to RON 882 Thousand.
Another non-recurring element with an impact on the net result is represented by the deferred tax constituted historically on the basis of fiscal losses and which must be reversed in line with the related expiration calendar. Thus, the Bank has a much higher deferred tax expense than it would have on a recurring basis for current income tax.
However, Patria Bank reported a level of Net Profit with a continuous positive dynamic, proving the capacity to grow towards a sustainable profitability.
| Main ratios | 31.mar.22 | 31.dec.21 | 31.mar.21 | |
|---|---|---|---|---|
| 1 | Total Own Funds Ratio | 18.29% | 19.13% | 21.19% |
| 2 | The potential change of the economic value (EVI/ Own Funds) | 11.3% | 9.7% | 8.5% |
| 3 | Loans (gross value) / Customer deposits | 70% | 65% | 70% |
| 4 | Loans (gross value) / Total assets | 59% | 56% | 59% |
| 5 | Liquidity Coverage Ratio (LCR) | 150% | 177% | 199% |
| 6 | Liquid assets / Total assets | 36% | 38% | 36% |
| 7 | Debt securities and equity instruments / Total assets | 26% | 25% | 24% |
| 8 | Return on Assets ratio (RoA) | 0.1% | 0.3% | 0.1% |
| 9 | Return on Equity ratio (RoE) | 1.0% | 2.8% | 0.5% |
| 10 | Expense/income ratio | 84% | 77% | 75% |
| 11 | Non Performing Loans (NPL)* | 8.78% | 9.38% | 11.69% |
| 12 | Non Performing Exposures (NPE)* | 7.77% | 7.88% | 10.09% |
| 13 | Coverage NPL | 53% | 54% | 52% |
| 14 | Coverage NPL** | 59% | 60% | 58% |
(*) As per individual FINREP
(**) As per the presentation for the calculation of the systemic risk buffer
Patria Credit IFN SA, a company authorized by the NBR to carry out lending activities, is a name known on the local and European marketsthrough its longstanding expertise in the field of agricultural microfinance. Patria Credit expanded its loan portfolio balance at the end of Q1 2022 up to the equivalent of RON 149.4
Million (up 31% compared to March 2021). The volume of new loans granted during the first 3 months of 2022 was of EUR 24.6 Million, increasing by 28% compared to the same period of 2021. The company obtained a net profit of RON 1.58 Million, down 24% compared to the same period last year.
Regarding credit risk, the company has maintained a prudent and appropriate policy for its risk profile. Thus, Patria Credit registered in the the first three months of 2022 an annual cost of risk of 0.003%, compared to a cost of the budgeted risk of 1.28%, calculated as a ratio between the level of expenses / revenues with the provisions from loans and the average portfolio.
| Ratios | 31-mar.-22 | 31-dec.-21 |
|---|---|---|
| Own funds ratios / Total assets | 20.36% | 22.20% |
| Loans (gross value) / Total assets | 95.15% | 95.52% |
| Return on assets (RoA) | 4.14% | 6.13% |
| Return on equity (RoE) | 25.89% | 35.38% |
| Cost to income ratio | 54.21% | 45.72% |
| PAR ratio>30 | 3.31% | 4.02% |
During the first three months of 2022 Patria Credit carried out the following projects:
The company continues financing the rural environment, micro-farms and small rural businesses, meeting their needs with new products and campaigns.
Patria Asset Management, an Investment Management Company authorized by FSA, managed five openend investment funds as at 31.03.2022: ETF BET Patria- Tradeville a shares fund listed on Bucharest Stock Exchange (BSE), Patria Global, a diversified fund, Patria Stock, an equity-focused fund, Patria Obligatiuni, a fund specialized in fixed income instruments denominated in RON and Patria Euro Obligatiuni, an EUR denominated fund specialized in fixed income investments.
ETF BET Patria-Tradeville is an Exchange Traded Fund in Romania with the objective of replicating the structure and performance of the BET stock index, the reference index of the Bucharest Stock Exchange, which currently includes the most important 20 companies listed on BSE. The fund is traded on the stock
exchange with the symbol TVBETETF and can be purchased through any intermediary authorized to trade on the stock exchange. On 31.03.2022 ETF BET Patria-Tradeville had net assets of RON 58.6 Million, increasing by 25.1% compared to 31.12.2021 and almost 3.5 times higher than the level registered on 31.03.2021, when the assets amounted to RON 16.87 Million. In the last 12 months ended on 31.03.2022, the BET Patria-Tradeville ETF brought a yield of + 18.6%.
Patria Global fund brought investors a positive return of 5.5% during the last 12 months ended on 31.03.2022 and the fund's assets increased by 30.3%, reaching RON 16.52 Million. Patria Stock fund recorded an increase of unit fund value by 8.26% and the fund's assets increased by 26.8%, up to RON 4.97 Million. As for Patria Obligatiuni fund, it recorded an yield of 2.30% during 31.03.2021 – 31.03.2022 while the fund's net assets decreased by 10.1% to RON 25.1 Million. Patria Euro Obligatiuni fund recorded a yield of 1.89% in Euro during the same period, while the fund's assets increased by 38.0% up to EUR 1.81 Million.
At the end of March 2022, the total assets managed by Patria Asset Management registered the level of RON 114.2 Million, increasing by 123.9% compared to March 31, 2021, when they amounted to RON 51.0 Million. An important contribution to this increase was the takeover in management of the BET Patria-Tradeville ETF fund in April 2021, a fund whose assets represented on 31.03.2022 over 51% of the assets managed by the Company.
As at 31.03.2022, the funds managed by Patria Asset Management had 7,011 investors, increasing by 22% compared to the end of 2021, when their number was 5,742.
Patria Asset Management launched in December 2021 an internet trading platform for investment funds. Available at online.patriafonduri.ro, the platform offers faster access to Patria Global, Patria Stock, Patria Obligatiuni and Patria Euro Obligatiuni funds. Through it, investors have access at any time to the value of their holdings in the four funds and can perform online operations of depositing money or withdrawing money from funds.
During the first three months of 2022, the Bank's activity was carried out under the conditions of the previously described economic environment, there have been macroeconomic and geopolitical events that impacted the evolution of the Bank's revenues.
The main activity took place under normal conditions. The legal obligations regarding the correct and upto-date organization and management of the accounting, regarding the observance of the accounting principles, of the accounting rules and methods provided by the regulations in force have been fulfilled.
The interim financial statements have been prepared in accordance with International Financial Reporting Standards adopted by the European Union and IAS 34 "Interim Financial Reporting".
The data presented on March 31, 2022 are based on the organization and management of accounting in accordance with Law no. 82/1991 republished with the subsequent modifications and completions, in accordance with the NBR Order no. 27/2010 for the approval of the accounting regulations compliant
with the International Financial Reporting Standards adopted by the European Union, with the subsequent modifications and completions.
The bank has not been unable to meet its financial obligations in any situation during 2022.
During the reporting period there were no changes regarding the rights of the shareholders.
As at March 31, 2022, shareholders whose voting rights are suspended under NBR's Orders held a total of 245,490,909 shares representing 7.49% of the total number of shares and the total number of voting rights.
By Patria Bank EGMS decision no. 1/18.10.2021 it has been approved the increase of the share capital of the Bank with a maximum amount of RON 19,730,000, from RON 311,533,057.50 to a maximum of RON 331,263,057.50 by issuing, without issuance premium, a number of maximum 197,300,000 new, nominative, ordinary, dematerialized shares each having a nominal value of RON 0.10 / share. By the same decision it was approved that the share capital increase to be carried out by: i) conversion, up to RON 14,925,000 (representing the RON equivalent of the amount of EUR 3,000,000 at an estimated exchange rate of 4.9750 RON / EUR updated with the NBR exchange rate on the day of subscription) of the subordinated loan granted to the Bank by EEAF Financial Services BV on 18.12.2018 and ii) additional cash contribution, with rendering the preference rights to all existing shareholders of the Bank registered in the register of Bank's shareholders as of the record date.
The share capital increase was carried out in accordance with the simplified Offering Prospectus approved by FSA Decision no. 1587/15.12.2021. Following the expiration, on 19.01.2022, of the period of exercising the preference rights by shareholders in the share capital increase, in the meeting dated 20.01.2022 the Board of Directors of Patria Bank determined the following:
The shares remaining unsubscribed following the exercise of the preemptive rights, respectively a number of 33,816,199 shares, were canceled. Therefore, the share capital of the Bank was increased by RON 16,348,380.10, from RON 311,533,057.50 to RON 327,881,437.60.
Patria Bank SA is a company whose shares are traded on the Bucharest Stock Exchange, Premium Category, under PBK symbol. The structure of the Bank's stock holdings amounting to at least 10% of its share capital at 31.03.2022 is as follows:
| Shareholder | No. of shares | Percent (%) |
|---|---|---|
| EEAF FINANCIAL SERVICES BV, Amsterdam | 2,755,927,215 | 84,0526 |
| Individuals | 456,551,621 | 13,9243 |
| Legal entities | 66,335,540 | 2,0232 |
| Total | 3,278,814,376 | 100 |
As at 31.03.2022 the management of the Bank is provided by:
a) The Board of Directors:
b) The Executive Committee:
Excepting the affiliated parties transactions mentioned at point 3, there were no other significant contracts concluded by Patria Bank S.A. during 2022 on acquisitions, mergers, divisions etc. or significant transactions with persons with whom they would act concertedly or in which such persons were involved.
On 06.05.2021 Patria Bank S.A. was notified the summons in file no. 494/99/2021 at Iasi Court which has the object the lawsuit filed by SC Iasisting SRL (which has concluded with Patria Bank S.A. loan agreements for investments and working capital), SC Red Hospital SRL, SC Recumedis SRL, SC Red Plaza SRL and Blajut Viorel (which are guarantors in the loan agreements concluded between Patria Bank S.A. and Iasisting SRL company), in which the Bank is asked to pay Euro 5,000,000 as material damages and Euro 3,000,000 as non-material damages (rom. daune morale). The file is under the settlement procedure.
By the Decision of the Board of Directors of Patria Bank SA no. 94/12.04.2022, it was decided the convening of the EGSM for May 19/20, 2022, at 10:00 hours, at the Bank registered office, considering the fact that Mr. Ilie Carabulea, as shareholder of the Bank, holding a number of 245,490,909 shares, representing 7.49 % of the share capital of the Bank, submitted, on the basis of Article 119 para. (1) of the Companies Law No 31/1990, as amended, by letter received by the Bank on 24.03.2022, a request to convene the EGSM with the following agenda:
Management's Statement regarding the assumption of responsibility for the preparation of the financial statements for Q1 2022.
NOTE: The financial statements for the first 3 months of 2022 have not beed audited/reviewed by the independent financial auditor.
Burak Yildiran Valentin Vancea
General Manager Deputy General Manager
We, the undersigned, Suleyman Burak Yildiran, General Manager and Valentin Vancea, Deputy General Manager, as the legal representatives of Patria Bank SA, in accordance with the provisions of art. 30 of the Accounting Law no. 82/1991 republished and of art. 65 para. (1) lit. c) of Law no. 24/2017 regarding the issuers and of art. 223 lit. B para. 1 c) of the ASF Regulation 5/2018 regarding the issuers of financial instruments and market operations, assume the responsibility for the preparation of the annual and consolidated financial statements as at 31.03.2022 and certify that, to our knowledge:
A) The accounting policies used to prepare the financial statements as at 31.03.2022 are in accordance with the accounting regulations applicable to credit institutions, based on the NBR Order no. 27/2010 for approving the accounting regulations in compliance with the International Financial Reporting Standards adopted by the European Union, with subsequent amendments;
B) The interim financial statements as at 31.03.2022 present a fair view of the financial position, financial performance and other information regarding the activity of Patria Bank SA;
C) Patria Bank SA operates in terms of continuity;
D) The Quarterly Report on the aforementioned financial statements includes an accurate analysis of the evolution and performance of the Bank, as well as a description of the main risks and uncertainties specific to the business performed.
Burak Yildiran Valentin Vancea
General Manager Deputy General Manager
PATRIA BANK GROUP
INTERIM CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 31 MARCH 2022 Prepared in accordance with International Financial Reporting Standards as adopted by the European Union
INTERIM CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
| Consolidated and Separate Statement of Profit or Loss | 4 |
|---|---|
| Consolidated and Separate Statement of Profit or Loss and Other Comprehensive Income | 6 |
| Consolidated and Separate Statement of Financial Position | 7 |
| Consolidated and Separate Statement of Changes in Equity | 11 |
| Consolidated and Separate Statement of Cash Flows | 13 |
| Notes to the consolidated and separate Financial Statements |
FOR THE YEAR ENDED 31 MARCH 2022 (All amounts are in thousand RON)
| Group | Bank | ||||
|---|---|---|---|---|---|
| Unaudited(*) | Unaudited(*) | Unaudited(*) | Unaudited(*) | ||
| Thousand RON | Note | 31 March 2022 | 31 March 2021 | 31 March 2022 | 31 March 2021 |
| Interest and similar income calculated using the effective interest rate Interest and similar expense Net interest income |
4 | 50,117 (15,358) 34,759 |
42,102 (12,075) 30,027 |
43,231 (13,470) 29,761 |
36,614 (11,094) 25,520 |
| Fee and commission income Fee and commission expense Net fee and commission income |
5 | 8,705 (1,892) 6,813 |
8,363 (1,789) 6,574 |
8,322 (1,270) 7,052 |
8,192 (1,540) 6,652 |
| Net gain/(loss) from financial assets measured at fair value through profit or loss Net gain/(loss) from disposal of investment securities at fair value through other comprehensive income |
6 7 |
(1,379) - |
975 4,508 |
369 - |
727 4,508 |
| Net gain/(loss) on derecognition of financial asstes measured at amortised cost Net gains/(losses) on investment properties Net gains/(losses) on non-current assets held for sale Other operating income Net Operating income |
8 | (79) 474 (38) 5,117 45,667 |
(8) (68) 2 4,011 46,021 |
(79) 474 (38) 4,052 41,591 |
(8) (68) 2 3,872 41,205 |
| Personnel expenses Administrative and other operating expenses Depreciation and amortization |
10 11 |
(19,025) (12,827) (5,598) |
(16,883) (11,159) (5,737) |
(17,050) (12,743) (5,317) |
(15,322) (10,011) (5,499) |
| Operational result before impairment | 8,217 | 12,242 | 6,481 | 10,373 | |
| Net charge with impairment of financial assets | 9 | (4,350) | (8,578) | (4,174) | (9,048) |
| Operational profit | 3,867 | 3,664 | 2,307 | 1,325 | |
| Profit before tax Income tax charge for the year Net profit for the period |
3,867 (1,720) 2,147 |
3,664 (1,281) 2,383 |
2,307 (1,425) 882 |
1,325 (872) 453 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 3 from 57
FOR THE YEAR ENDED 31 MARCH 2022 (All amounts are in thousand RON)
| Thousand RON | Unaudited(*) 31 December 2021 |
Unaudited(*) 31 December 2020 |
Unaudited(*) 31 December 2021 |
Unaudited(*) 31 December 2020 |
|---|---|---|---|---|
| Net profit for the period Other elements of the comprehensive income |
2,147 | 2,383 | 882 | 453 |
| Items that may be reclassified to profit or loss: | ||||
| Gains on debt instruments measured at FVOCI, recycled in the profit or loss |
- | (4,508) | - | (4,508) |
| Gains/(losses) from fair value measurement of debt instruments measured at FVOCI |
(18,371) | 2,192 | (18,372) | 2,192 |
| Variation of expected credit loss related to debt instruments measured at FVOCI |
(6) | (6) | (6) | (6) |
| Income tax recorded directly in other comprehensive income | 2,940 | 371 | 2,940 | 371 |
| Items that may not be reclassified to profit or loss: | ||||
| Income tax recorded directly in other comprehensive income, related to the changes of revaluation reserve |
471 | 248 | 471 | 248 |
| Gain on equity investments measured at FVOCI | - | 3 | - | 3 |
| Other elements of the comprehensive income, net of tax | (14,966) | (1,700) | (14,967) | (1,700) |
| Comprehensive income | (12,819) | 683 | (14,085) | (1,247) |
| Profit attributable to: -Equity holders of the parent entity |
2,147 | 2,383 | 882 | 453 |
| -Non-controlling interests | - | - | - | - |
| Profit for the period | 2,147 | 2,383 | 882 | 453 |
| Comprehensive income attributable to: | ||||
| -Equity holders of the parent entity | (12,819) | 683 | (14,085) | (1,247) |
| -Non-controlling interests Comprehensive income |
- (12,819) |
- 683 |
- (14,085) |
- (1,247) |
| Earnings per share (basic and diluted) 33 |
0.0007 | 0.0008 | 0.0003 | 0.0001 |
The financial statements were approved by the Board of Directors on the 13 th of May 2022 and were signed on its behalf by:
| Burak Yildiran | Valentin Vancea |
|---|---|
| General Manager | Deputy General Manager |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor.
Page 4 from 57
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | Note | Unaudited(*) 31 March 2022 |
31 December 2021 |
Unaudited(*) 31 March 2022 |
31 December 2021 |
| Assets | |||||
| Cash and cash equivalents | 12 | 367,204 | 502,974 | 364,645 | 497,316 |
| Financial assets measured at fair value | 13 | ||||
| through profit or loss | 111,694 | 97,181 | 19,380 | 19,377 | |
| Financial asset measured at fair value | |||||
| through other items of comprehensive | 14 | ||||
| income | 701,486 | 682,856 | 701,486 | 682,856 | |
| Due from other banks | 15 | 8,123 | 5,834 | 8,123 | 5,834 |
| Loans and advances to customers Investments in debt instruments at |
16 | 2,242,944 | 2,154,954 | 2,095,822 | 2,028,911 |
| amortized cost | 17 | 269,033 | 259,463 | 269,033 | 259,463 |
| Investment property | 18 | 114,306 | 118,871 | 114,306 | 118,871 |
| Fixed assets held for sale | 2,148 | 7,011 | 2,148 | 7,011 | |
| Investment in subsidiaries | 19 | - | - | 34,296 | 34,296 |
| Other financial assets | 20 | 13,985 | 14,960 | 13,684 | 15,143 |
| Other assets | 21 | 12,079 | 8,408 | 12,187 | 8,443 |
| Deferred tax assets | 13,989 | 11,965 | 13,380 | 11,394 | |
| Intangible assets | 22 | 46,758 | 47,005 | 45,881 | 46,139 |
| Property and equipment | 23 | 84,434 | 92,895 | 82,659 | 91,035 |
| Total assets | 3,988,183 | 4,004,377 | 3,777,030 | 3,826,089 | |
| Liabilities | |||||
| Due to other banks | 24 | 105,891 | 18,312 | 105,891 | 18,312 |
| Customer deposits | 25 | 3,192,148 | 3,306,159 | 3,198,227 | 3,314,846 |
| Loans from banks and other financial | |||||
| institutions | 26 | 115,802 | 99,377 | - | - |
| Other financial liabilities | 27 | 144,173 | 143,841 | 42,814 | 53,832 |
| Provisions | 28 | 12,081 | 11,113 | 11,207 | 10,357 |
| Other liabilities | 29 | 8,531 | 3,704 | 6,974 | 3,386 |
| Subordinated debts | 30 | 20,040 | 34,896 | 10,082 | 24,797 |
| Debt securities in issue | 31 | 63,187 | 64,174 | 63,187 | 64,174 |
| Total liabilities | 3,661,853 | 3,681,576 | 3,438,382 | 3,489,704 | |
| Equity | |||||
| Share capital and equity premiums | 32 | 332,181 | 315,833 | 332,181 | 315,833 |
| Merger premium | (67,569) | (67,569) | (67,569) | (67,569) | |
| Treasury shares | (1,140) | (1,140) | (6) | (6) | |
| Accumulated Profits / (Losses) | 18,628 | 13,539 | 31,640 | 27,816 | |
| Revaluation reserve | 35 | 15,911 | 33,819 | 14,200 | 32,109 |
| Reserves for general banking risks | 35 | - | - | - | - |
| Statutory legal reserve | 35 | 13,641 | 13,641 | 13,524 | 13,524 |
| Other reserves | 35 | 14,678 | 14,678 | 14,678 | 14,678 |
| Total equity | 326,330 | 322,801 | 338,648 | 336,385 | |
| Total liabilities and equity | 3,988,183 | 4,004,377 | 3,777,030 | 3,826,089 |
The financial statements were approved by the Board of Directors on the 13th of May 2022 and were signed on its behalf
by:
Burak Yildiran Valentin Vancea General Manager Deputy General Manager
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 5 from 57
FOR THE YEAR ENDED 31 MARCH 2022 (All amounts are in thousand RON)
Grup
| Mii LEI | Share capital |
Merger premium |
Treasury shares |
Revaluation reserves for financial assets at FVOCI |
Revaluation reserve for property |
Statutory legal reserve |
Reserves for general banking risks |
Other reserves |
Accumulated Profits / (Losses) |
Total equity attributable to the parent |
Non controlling interest |
Total equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 January 2022 | 315,833 | (67,569) | (1,140) | (5,841) | 39,660 | 13,641 | - | 14,678 | 13,539 | 322,801 | - | 322,801 |
| Comprehensive income | - | - | - | - | - | - | - | - | 2,147 | 2,147 | - | 2,147 |
| Profit for the period | - | - | - | - | - | - | - | - | 2,147 | 2,147 | - | 2,147 |
| Other comprehensive income | - | - | ||||||||||
| Net gain related to FVOCI debt instruments recycled in profit or loss |
- | - | - | - | - | - | - | - | - | - | - | - |
| account | ||||||||||||
| Expected net credit loss related to | ||||||||||||
| FVOCI debt instruments | - | - | - | (5) | - | - | - | - | - | (5) | - | (5) |
| Gains/(losses) from the | ||||||||||||
| measurement at fair value of debt | - | - | - | (15,432) | - | - | - | - | - | (15,432) | - | (15,432) |
| instruments FVOCI | ||||||||||||
| Net gain from the fair value | ||||||||||||
| measurement of FVOCI equity instruments |
- | - | - | - | - | - | - | - | - | - | - | - |
| Changes in the reserve for the | ||||||||||||
| revaluation of property | - | - | - | - | 471 | - | - | - | - | 471 | - | 471 |
| Total other comprehensive | ||||||||||||
| income | - | - | - | (15,437) | 471 | - | - | - | - | (14,966) | - | (14,966) |
| Total comprehensive income | - | - | - | (15,437) | 471 | - | - | - | 2,147 | (12,819) | - | (12,819) |
| Revaluation reserve realized |
- | - | - | - | (2,942) | - | - | - | 2,942 | - | - | - |
| Share capital increase | 16,348 | - | - | - | - | - | - | - | - | 16,348 | - | 16,348 |
| Balance at 31 March 2022 | 332,181 | (67,569) | (1,140) | (21,278) | 37,189 | 13,641 | - | 14,678 | 18,628 | 326,330 | - | 326,330 |
Notes 1 to 39 are part of the consolidated and separate financial statements.
(*) Unaudited / unrevised by the financial auditor.
Page 6 from 57
FOR THE YEAR ENDED 31 MARCH 2022 (All amounts are in thousand RON)
| Share capital |
Merger premium |
Treasury shares |
Revaluation reserves for financial assets at FVOCI |
Revaluation reserve for property |
Statutory legal reserve |
Reserves for general banking risks |
Other reserves |
Accumulated Profits / (Losses) |
Total equity attributable to the parent |
Non controlling interest |
Total equity |
|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 January 2021 | 315,833 | (67,569) | (1,138) | 11,667 | 43,361 | 12,752 | 15,301 | 14,678 | (15,253) | 329,632 | - | 329,632 |
| Comprehensive income | ||||||||||||
| Profit for the period | - | - | - | - | - | - | - | - | 9,887 | 9,887 | - | 9,887 |
| Other comprehensive income Net gain related to FVOCI debt |
- | |||||||||||
| instruments recycled in profit or loss account |
- | - | - | (5,718) | - | - | - | - | - | (5,718) | - | (5,718) |
| Expected net credit loss related to FVOCI debt instruments Gains/(losses) from the measurement |
- | - | - | 425 | - | - | - | - | - | 425 | - | 425 |
| at fair value of debt instruments FVOCI |
- | - | - | (13,174) | - | - | - | - | - | (13,174) | - | (13,174) |
| Net gain from the fair value measurement of FVOCI equity instruments |
- | - | - | 959 | - | - | - | - | - | 959 | - | 959 |
| Changes in the reserve for the revaluation of property |
- | - | - | - | 705 | - | - | - | - | 705 | - | 705 |
| Total other comprehensive income |
- | - | - | (17,508) | 705 | - | - | - | - | (16,803) | - | (16,803) |
| Total comprehensive income | - | - | - | (17,508) | 705 | - | - | - | 9,887 | (6,916) | - | (6,916) |
| Revaluation reserve realized |
- | - | - | - | (4,406) | - | - | - | 4,406 | - | - | - |
| Allocation to the legal reserve | - | - | - | - | - | 889 | - | - | (802) | 87 | - | 87 |
| Use of reserves to cover losses from loans |
- | - | - | - | - | - | (15,301) | - | 15,301 | - | - | - |
| Acquisitions of treasury shares | - | - | (2) | - | - | - | - | - | - | (2) | - | (2) |
| Balance at 31 December 2021 | 315,833 | (67,569) | (1,140) | (5,841) | 39,660 | 13,641 | - | 14,678 | 13,539 | 322,801 | - | 322,801 |
Notes 1 to 39 are part of the consolidated and separate financial statements.
(*) Unaudited / unrevised by the financial auditor.
Page 7 from 57
FOR THE YEAR ENDED 31 MARCH 2022 (All amounts are in thousand RON)
| Mii LEI | Share capital |
Merger premium |
Treasury shares |
Revaluation reserves for financial assets at FVOCI |
Revaluation reserve for premises |
Statutory legal reserve |
Reserves for general banking risks |
Other reserves |
Accumulated Profits / (Losses) |
Total equity |
|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 January 2022 | 315,833 | (67,569) | (6) | (5,840) | 37,949 | 13,524 | - | 14,678 | 27,816 | 336,385 |
| Comprehensive income | - | - | - | - | - | - | - | - | 882 | 882 |
| Profit for the period | - | - | - | - | - | - | - | - | 882 | 882 |
| Other comprehensive income | ||||||||||
| Net gain related to FVOCI debt instruments | ||||||||||
| recycled in profit or loss account | - | - | - | - | - | - | - | - | - | - |
| Expected net credit loss related to FVOCI debt | - | - | - | (5) | - | - | - | - | - | (5) |
| instruments | ||||||||||
| Gains/(losses) from the measurement at fair value | - | - | - | (15,433) | - | - | - | - | - | (15,433) |
| of debt instruments FVOCI | ||||||||||
| Net gain from the fair value measurement of | - | - | - | - | - | - | - | - | - | - |
| FVOCI equity instruments | ||||||||||
| Changes in the reserve for the revaluation of | - | - | - | - | 471 | - | - | - | 471 | |
| property | ||||||||||
| Total other comprehensive income | - | - | - | (15,438) | 471 | - | - | - | - | (14,967) |
| Total comprehensive income | - | - | - | (15,438) | 471 | - | - | - | 882 | (14,085) |
| Revaluation reserve realized |
- | - | - | - | (2,942) | - | - | - | 2,942 | - |
| Share capital increase | 16,348 | - | - | - | - | - | - | - | - | 16,348 |
| Balance at 31 March 2022 | 332,181 | (67,569) | (6) | (21,278) | 35,478 | 13,524 | - | 14,678 | 31,640 | 338,648 |
Notes 1 to 39 are part of the consolidated and separate financial statements.
(*) Unaudited / unrevised by the financial auditor.
Page 8 from 57
FOR THE YEAR ENDED 31 MARCH 2022 (All amounts are in thousand RON)
| Mii LEI | Share capital |
Merger premium |
Treasury shares |
Revaluation reserves for financial assets at FVOCI |
Revaluation reserve for premises |
Statutory legal reserve |
Reserves for general banking risks |
Other reserves |
Accumulated Profits / (Losses) |
Total equity |
|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 January 2021 | 315,833 | (67,569) | (4) | 11,668 | 41,648 | 12,752 | 15,301 | 14,678 | (579) | 343,728 |
| Comprehensive income | ||||||||||
| Profit for the period | - | - | - | - | - | - | - | - | 9,462 | 9,462 |
| Other comprehensive income | ||||||||||
| Net gain related to FVOCI debt instruments | - | - | - | (5,718) | - | - | - | - | - | (5,718) |
| recycled in profit or loss account | ||||||||||
| Expected net credit loss related to FVOCI debt instruments |
- | - | - | 425 | - | - | - | - | - | 425 |
| Gains/(losses) from the measurement at fair | ||||||||||
| value of debt instruments FVOCI |
- | - | - | (13,174) | - | - | - | - | - | (13,174) |
| Net gain from the fair value measurement of | ||||||||||
| FVOCI equity instruments | - | - | - | 959 | - | - | - | - | - | 959 |
| Changes in the reserve for the revaluation of | - | - | - | - | 705 | - | - | - | - | 705 |
| property | ||||||||||
| - | - | - | (17,508) | 705 | - | - | - | - | ||
| Total other comprehensive income | (16,803) | |||||||||
| Total comprehensive income | - | - | - | (17,508) | 705 | - | - | - | 9,462 | (7,341) |
| Allocation to the legal reserve Revaluation reserve realized |
- - |
- - |
- - |
- - |
- (4,404) |
772 - |
- - |
- - |
(772) 4,404 |
- - |
| Use of reserves to cover losses from loans | - | - | - | - | - | - | (15,301) | - | 15,301 | - |
| Acquisitions of treasury shares | - | - | (2) | - | - | - | - | - | - | (2) |
| Balance at 31 December 2021 | 315,833 | (67,569) | (6) | (5,840) | 37,949 | 13,524 | - | 14,678 | 27,816 | 336,385 |
Notes 1 to 39 are part of the consolidated and separate financial statements.
(*) Unaudited / unrevised by the financial auditor.
Page 9 from 57
| Group | Bank | |||
|---|---|---|---|---|
| Thousand RON | Unaudited(*) 31 March 2022 |
Unaudited(*) 31 March 2021 |
Unaudited(*) 31 March 2022 |
Unaudited(*) 31 March 2021 |
| Cash flows from operating activities | ||||
| Interest received | 36,770 | 35,579 | 34,125 | 33,581 |
| Interest paid | (16,191) | (13,977) | (13,411) | (12,845) |
| Fees and commissions received | 8,705 | 8,363 | 8,322 | 8,192 |
| Fees and commissions paid | (1,892) | (1,789) | (1,270) | (1,540) |
| Gain / (Loss) from financial derivatives | 141 | 157 | 141 | 159 |
| Net gain from financial instruments and other operating income |
313 | 6,892 | 996 | 6,505 |
| Recoveries from off balance sheet items | 1,357 | 2,636 | 1,353 | 2,612 |
| Cash payments to employees | (17,745) | (16,169) | (15,880) | (14,710) |
| Cash payments to suppliers | (12,637) | (11,182) | (12,561) | (10,033) |
| Income taxes paid | (265) | - | - | - |
| Net cash-flow from operating activities before | ||||
| changes in operating assets and liabilities | (1,444) | 10,510 | 1,815 | 11,921 |
| Changes of operating assets | ||||
| (Increase)/Decrease of: | ||||
| - loans and advances to banks | (2,199) | 2,021 | (2,196) | 2,012 |
| - financial assets measured at fair value through profit or loss | (14,536) | 9,024 | (26) | 10,321 |
| - loans and advances to customers | (86,899) | (83,391) | (69,882) | (73,437) |
| - other financial assets | 16,349 | (1,065) | 16,825 | (1,596) |
| Total changes of operating assets | (87,285) | (73,411) | (55,279) | (62,700) |
| Changes of operating liabilities | ||||
| Increase/(Decrease) of: - due to other banks |
87,575 | 9,999 | 87,570 | 9,999 |
| - deposits from customers | (115,102) | (65,442) | (118,743) | (66,433) |
| - other financial liabilities | 10,194 | 5,143 | (2,293) | 2,010 |
| Total changes of operating liabilities | (17,333) | (50,300) | (33,466) | (54,424) |
| Net cash flow used in operating activities | (106,062) | (113,201) | (86,930) | (105,203) |
| Cash flows from investing activities | ||||
| Acquisition of investment securities at FVOCI | (112,901) | (151,666) | (112,901) | (151,666) |
| Proceeds from investment securities at FVOCI | 62,738 | 227,473 | 62,738 | 227,473 |
| Acquisition of equity instruments | - | (974) | - | (974) |
| Maturities of investments at amortized cost | (8,337) | 60,830 | (8,337) | 60,830 |
| Proceeds from dividend | 5 | - | 5 | - |
| Sale of investment property and non-current assets held for | 12,873 | 11,787 | 12,873 | 11,787 |
| sale and premises | ||||
| Acquisition of tangile and intagible assets | (1,920) | (13,658) | (1,816) | (13,654) |
| Net cash used in investing activities | (47,542) | 133,792 | (47,438) | 133,796 |
| Cash flows from financing activities | ||||
| Withdrawals from loans from other financial institutions | 23,574 | 11,020 | - | - |
| Repayments of loans from other financial institutions | (7,149) | (1,578) | - | - |
| Subordinated debt Issuance of debt securities |
(14,792) (339) |
187 492 |
(14,844) - |
187 492 |
| - | - | |||
| Net cash generated from financing activities | 1,294 | 10,121 | (14,844) | 679 |
| Effect of exchange rate changes on cash and cash | ||||
| equivalents | 192 | 1,025 | 193 | 1,023 |
| Net (decrease)/increase in cash and cash equivalents | (152,118) | 31,737 | (149,019) | 30,295 |
| Cash and cash equivalents at 1 January | 502,974 | 354,793 | 497,316 | 350,943 |
| Cash and cash equivalents at the end of the period | 350,856 | 386,530 | 348,297 | 381,238 |
As at 31 March 2022, the Structure of the Patria Bank Group is the following:
• Patria Bank S.A. – Parent company– "The Bank / PBK" is a Romanian credit institution resulted from the merger by absorption between the former Banca Comerciala Carpatica S.A. (as an absorbing entity) and former Patria Bank S.A. (as an absorbed entity), which took place on 1st of May 2017.
According to the decision of the General Meeting of Shareholders regarding the approval of the merger, the decision to change the name of the absorbing company from Banca Comerciala Carpatica S.A. in Patria Bank S.A. was implemented at the same time with the merger date.
The Registered office: 42, Pipera Road, Globalworth Plaza Building, 8 and 10 Floors, Bucharest, Sector 2, postal code 020112.
As at 31 March 2022 and 31 December 2021 the Bank is ultimately controlled by Emerging Europe Accession Fund Cooperatief U.A. ("EEAF") sole owner of EEAF Financial Services B.V. The main investors in EEAF are EBRD - European Bank for Reconstruction and Development, EIF - European Investment Fund (part of the European Investment Bank group), DEG - Deutsche Investitions- und Entwicklungsgesellschaft GmbH, Black Sea Trade and Development Bank.
The Bank provides banking services and other financial services to companies and retail clients. These services include: deposit and current accounts, domestic and international payments, foreign exchange transactions, working capital loans, medium term lending, bank guarantees, letters of credit.
• Patria Credit IFN SA – Subsidiary – ("IFN") is a company registered in Romania since February 12, 2004 and it is authorized by the National Bank of Romania ("NBR") to carry out lending activities. Starting with September 28, 2007, IFN is registered with the General Register of the NBR's Nonbanking Financial Institutions ("IFN"), and as of February 26, 2008 Patria Credit IFN was also registered with the NBR Special Register.
Patria Credit IFN is specialized in rural lending and microfinance and it is under the control of Patria Bank SA (99,99%).
• SAI Patria Asset Management SA (former SAI Carpatica Asset Management SA) – Subsidiary – is authorized by the Financial Supervision Authority ("FSA") for the management of open-end investment funds. The company manages five investment funds – FDI Patria Stock, FDI Patria Global, FDI Patria Obligatiuni, FDI Patria Euro Obligatiuni and ETF BET Patria – Tradeville. The BET Patria-Tradeville ETF was taken over by the administration of SAI Patria Asset Management in April 2021, being the only ETF (Exchange Tranded Fund) equity fund in Romania. ETF BET Patria-Tradeville is a passively-managed fund, listed on the Bucharest Stock Exchange, which tracks
the evolution of the exchange's main index, BET. The fund's units can be bought on the exchange through any intermediary licensed by the Bucharest Stock Exchange. SAI Patria Asset Management SA together with the managed investment funds are under the control of Patria Bank SA. Patria Bank holds 99.99% of the share capital and voting rights of SAI Patria Asset Management.
• Carpatica Invest SA (undergoing dissolution) – Subsidiary – Carpatica Invest S.A. with its headoffice in Sibiu, 5 Mihai Viteazu Street. Carpatica Invest S.A was a financial investment services company that was authorized, regulated and supervised by the FSA; Patria Bank SA holds 95.68% of its shares.
The Financial Supervisory Authority has ruled to suspend the trading activity of SSIF Carpatica Invest SA, considering that the company was not compliant with the legal requirements regarding the level of own funds and the main shareholder at that time, Banca Comerciala Carpatica SA, decided to dissolve the company. Considering the dissolving decision and the insignificant impact of consolidating SSIF Carpatica Invest SA, the Group has decided to modify the scope of the consolidation by excluding Carpatica Invest SA.
The criminal case no. 19883/3/2017 * a1, in which Carpatica Invest S.A. has the quality of defendant, is on the role of the Bucharest Court. By decision of 24.04.2018, it was ordered to suspend the dissolution or liquidation process, but the appeal of the judicial liquidator against the measures ordered by the Bucharest Court was admitted, the request for suspension of the bankruptcy procedure against CARPATICA INVEST SA being definitively rejected as inadmissible. As a result, the bankruptcy procedure continued with successive trial terms granted in the case 2127/85/2016 Sibiu Court, but the closing of the procedure is dependent on the way of solving the criminal case and the lifting of the seizure on the debtor's assets.
The insolvency case 2127/85/2016 pending before the Sibiu Tribunal has a deadline of 19.05.2022 (deadline granted for the continuation of the insolvency procedure in order to definitively solve the criminal case and to clarify the situation of the assets.). In the criminal case no. 19883/3/2017 * of the Bucharest Tribunal, the following solution was pronounced on the merits.
By Decision no. 79/2022 of 28.01.2022, it was ordered to convict the defendants, as well as to maintain the precautionary measures established by the ordinances during the criminal investigation (insurance seizure), concerning the assets of the defendants, including the company Carpatica Invest. Multi-party appeals have been filed against the solution.
As at 31 December 2021 – The Group Patria Bank ("The Group") includes Patria Bank S.A. ("The Bank" / "PBK (resulted from the 2017 merger between Banca Comerciala Carpatica and Patria Bank, former Nextebank until 2016), Patria Credit IFN SA ("IFN"), SAI Patria Asset Management SA (former SAI Carpatica Asset Management SA) together with the managed investment funds: FDI Patria Stock, FDI Patria Global, FDI Patria Obligatiuni, FDI Patria Euro Obligatiuni and ETF BET Patria – Tradeville and SSIF Carpatica Invest SA (in bankruptcy, ongoing insolvency procedure, unconsolidated). Patria Bank SA is the Parent company of the Group.
The interim consolidated and individual financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. These interim consolidated and individual financial statements were not audited or reviewed.
The interim consolidated and individual financial statements include:
The interim financial statements do not include all disclosures required by the International Financial Reporting Standards adopted by the European Union ("IFRS") for the full set of annual financial statements; so, these interim statements should be read together with the Group's annual financial statements as at 31 December 2021.
In accordance with Order 27 / 16.12.2010 issued by the President of the Board of Directors of the National Bank of Romania, the Group's annual financial statements at 31 December 2021 were prepared in accordance with IFRS.
The Group keeps its accounting records in Romanian LEI ("RON"); RON is also the functional and presentation currency of the Group in accordance with the Romanian Accounting Law and the accounting and reporting regulations issued by NBR and the Ministry of Public Finance.
These financial statements have been prepared under the historical cost convention, as modified by the initial recognition of financial instruments based on fair value, the revaluation of land and buildings, financial assets at fair value through other comprehensive income, non-current assets held for sale, investment properties and financial instruments at fair value through profit or loss.
The consolidated interim financial statements comprise the financial statements of Patria Bank SA and all its subsidiaries for the period ended at 31 March 2022 and the comparative financial statements of the Patria Bank SA and all its subsidiaries for the period ended 31 March 2021 or 31 December 2021.
All outstanding balances between Group companies, transactions, income and expenses, losses and gains arising from transactions between Group companies are eliminated in full.
Subsidiaries are entities controlled by the Bank. An investor controls an investee when it has power over the investee, exposure, or rights, to variable returns from its involvement with the investee and the ability to use its power over the investee to affect the amount of the investor's returns.
The entities in the Group are incorporated in Romania, keep their accounting books and prepare their statutory financial statements as follows:
the Bank, SAI Patria Asset Management S.A., FDI Patria Stock, FDI Patria Global, FDI Patria Obligatiuni, FDI Patria EURO Obligatiuni and FDI ETF BET Patria Tradeville in accordance with IFRS as adopted by the European Union;
Patria Credit IFN SA in accordance with Romanian accounting regulations.
The Bank consolidates the financial statements of its subsidiaries in accordance with IFRS 10. The list of Group subsidiaries is presented at Note 1 "Reporting entity".
The significant accounting policies used in the preparation of these interim financial statements are those presented in Note 3 of the Group's Annual Consolidated and Separate Financial Statements for the year ended 31 December 2021.
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 March 2021 |
31 March 2022 |
31 March 2021 |
|
| Interest and similar income | |||||
| Loans and advances to customers (*) | 43,267 | 36,936 | 36,827 | 31,828 | |
| Debt instruments at amortised cost Financial assets at fair value through other |
1,340 | 1,289 | 1,340 | 1,289 | |
| comprehensive income | 5,203 | 3,791 | 4,783 | 3,434 | |
| Due from other banks | 304 | 86 | 281 | 60 | |
| Interest income on lease receivables | 3 | - | - | 3 | |
| Total interest and similar income using effective interest method |
50,117 | 42,102 | 43,231 | 36,614 | |
| Interest and similar expense | |||||
| Customer deposits Loans from banks and other financial |
11,746 | 9,433 | 11,767 | 9,447 | |
| institutions | 2,072 | 960 | 310 | 118 | |
| Subordinated liabilities | 331 | 463 | 187 | 313 | |
| Other interest expense | 62 | 71 | 59 | 68 | |
| Subordinated bonds | 1,147 | 1,148 | 1,147 | 1,148 | |
| Total interest and similar expense | 15,358 | 12,075 | 13,470 | 11,094 | |
| Net interest income | 34,759 | 30,027 | 29,761 | 25,520 |
(*) Interest income at Group level includes RON 580 thousand (31 March 2021: RON 1,545 thousand) interest income recognized on impaired loans to customers.
(*) Interest income at Bank level includes RON 488 thousand (31 March 2021: RON 1,484 thousand) interest income recognized on impaired loans to customers.
| Group | Bank | |||
|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 March 2021 |
31 March 2022 |
31 March 2021 |
| Fee and commission income | ||||
| Cards activity (VISA & MC) | 1,990 | 1,746 | 1,991 | 1,746 |
| Non-cash transactions | 3,515 | 3,769 | 3,521 | 3,773 |
| Non-deferrable commissions related to loans | 421 | 475 | 401 | 475 |
| Cash transactions | 1,557 | 1,401 | 1,557 | 1,401 |
| Income from other financial services | 1,108 | 782 | 738 | 607 |
| Interbank settlements | 57 | 70 | 57 | 70 |
| Total fee and commission income from contracts with customers |
8,648 | 8,243 | 8,265 | 8,072 |
| Issuing financial guarantees | 57 | 120 | 57 | 120 |
| Total fee and commission income | 8,705 | 8,363 | 8,322 | 8,192 |
| Fee and commission expense | - | |||
| Cards activity (VISA & MC) | 284 | 241 | 284 | 241 |
| Interbank settlements | 510 | 478 | 510 | 477 |
| Expenses from other financial services | 688 | 350 | 71 | 107 |
| Other | 410 | 720 | 405 | 715 |
| Total fee and commission expense | 1,892 | 1,789 | 1,270 | 1,540 |
| Net fee and commission income | 6,813 | 6,574 | 7,052 | 6,652 |
Non-deferrable commissions related to loans represent fees and commissions that are not subject of amortization according to the Effective Interest Rate methodology and consist mainly on fees charged for services provided (administration fees) that are recognized in the period when they were incurred, fees for credit commitments when the probability of disbursement is not certain, fees charged for early repayments, etc. The Group has internal procedures that classifies all commission types and specifies the accounting treatment to be applied for each class.
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 March 2021 |
31 March 2022 |
31 March 2021 |
|
| Net gain/(loss) from financial assets measured at fair value through profit or loss |
(1,890) | 617 | (143) | 369 | |
| Net gain/(loss) from derivatives | 511 | 358 | 512 | 358 | |
| Total | (1,379) | 975 | 369 | 727 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 16 from 57
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 March 2021 |
31 March 2022 |
31 March 2021 |
|
| Gains from disposals of investment securities at fair value through other comprehensive income |
- | 4,664 | - | 4,664 | |
| Losses from disposals of investment securities at fair value through other comprehensive income |
- | (156) | - | (156) | |
| Total | - | 4,508 | - | 4,508 |
| Group | Bank | |||
|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 March 2021 |
31 March 2022 |
31 March 2021 |
| Net gain/ (loss) from foreign exchange transactions |
1,900 | 1,337 | 1,906 | 1,221 |
| Dividend income | 1,043 | 187 | 5 | 187 |
| Other operating income | 96 | 636 | 63 | 613 |
| Gain / (Loss) from disposal of premises and equipment sales |
244 | 322 | 244 | 322 |
| Income from rental of real estate | 1,834 | 1,529 | 1,834 | 1,529 |
| Total | 5,117 | 4,011 | 4,052 | 3,872 |
For the Group, dividend income of RON 1,043 thousand (31 March 2021: RON 187 thousand) represents share of profits paid proportionally to the Group, as follows:
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 March 2021 |
31 March 2022 |
31 March 2021 |
|
| Charge with adjustments for impairment of cash and cash equivalents |
(5) | - | (5) | - | |
| Charge/(Release) with adjustments for impairment of loans and advances to customers |
6,116 | 9,637 | 5,934 | 10,193 | |
| Loss from written off loans | 7 | 23 | 6 | 14 | |
| Recoveries from loans previously written off | (1,357) | (2,642) | (1,354) | (2,619) | |
| Charge/(Release) with the adjustments for impairment of financial asset measured at fair value through other items of comprehensive income |
(7) | (7) | (7) | (7) | |
| Charge/(Release) with the adjustments for impairment of debt instruments at amortised cost |
8 | 3 | 8 | 3 | |
| Charge/(Release) with the adjustments for impairment of credit commitments and financial guarantees |
(502) | (193) | (502) | (293) | |
| Charge/(Release) with adjustments for impairment of other financial assets |
90 | 1,757 | 94 | 1,757 | |
| Net charge with adjustments for impairment of financial assets |
4,350 | 8,578 | 4,174 | 9,048 |
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 | 31 March 2021 | 31 March 2022 | 31 March 2021 | |
| Wages and salaries | 17,033 | 15,502 | 15,327 | 14,109 | |
| Social security contributions | 629 | 539 | 470 | 473 | |
| Net expense/(income) with provisions related to wage costs |
1,280 | 714 | 1,170 | 612 | |
| Other personnel expense | 83 | 128 | 83 | 128 | |
| Total | 19,025 | 16,883 | 17,050 | 15,322 |
The average number of employees of the Group as at 31 March 2022 is 655 employees (31 March 2021: 639 employees).
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 18 from 57
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 March 2021 |
31 March 2022 |
31 March 2021 |
|
| Third parties services | 9,710 | 8,921 | 9,206 | 8,543 | |
| Rent | 97 | (552) | 84 | (548) | |
| Materials and small inventories | 455 | 530 | 375 | 465 | |
| Annual contribution to Guarantee Fund | 1,580 | 740 | 1,580 | 740 | |
| Other taxes | 809 | 879 | 745 | 768 | |
| Advertising and publicity | 363 | 164 | 281 | 124 | |
| Net charge/(release) of litigation provisions | 190 | (23) | 182 | (22) | |
| Other operating expenses | 292 | (49) | 290 | (59) | |
| The expense related to the financial debt for the fund unit holders |
(669) | 549 | - | - | |
| Total | 12,827 | 11,159 | 12,743 | 10,011 |
| Group | Bank 31 March 31 December |
||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 December 2021 |
2022 | 2021 | |
| Cash on hand | 22,321 | 18,220 | 22,320 | 18,220 | |
| Cash in ATMs | 52,713 | 62,892 | 52,713 | 62,893 | |
| Mandatory minimum reserve | 266,907 | 279,641 | 266,907 | 279,641 | |
| Correspondent accounts and sight deposits with other banks |
23,584 | 47,653 | 22,705 | 46,558 | |
| Placements with other banks with original maturities of less than three months |
1,679 | 94,568 | - | 90,004 | |
| Total | 367,204 | 502,974 | 364,645 | 497,316 |
(*)Cash and cash equivalents are not guaranteed.
(i) The mandatory minimum reserve is maintained in accordance with Regulation no. 6/2002 issued by the National Bank of Romania and the subsequent changes and amendments. According to this regulation, the Group is required to maintain a minimum average balance of mandatory reserve throughout the reporting period (monthly basis). The amounts from the mandatory reserve accounts are readily available for the use of the Group according to the liquidity needs and strategy, subject to achieving the minimum reserve as an average for the reporting period.
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 19 from 57
As of 31 March 2022 the mandatory minimum reserve requirement was 8% (31 December 2021: 8%) for RON funds attracted from customers and 5 % (31 December 2021: 5%) for foreign currency denominated funds attracted.
As of 31 March 2022 the amounts presented in the statement of financial position of cash and equivalents and cash at Central Banks are neither past due no impaired.
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March | 31 December | 31 March | 31 December | |
| 2022 | 2021 | 2022 | 2021 | ||
| Equity instruments(i) | 19,380 | 19,377 | 19,380 | 19,377 | |
| Debt instruments (ii) | 92,314 | 77,804 | - | - | |
| Total | 111,694 | 97,181 | 19,380 | 19,377 |
(i) In this category the Group included shares held at Visa Inc. in amount of RON 4,489 thousand (31 December 2021: RON 4,308 thousand) and listed equity instruments, held by the consolidated funds and other funds held by the Group.
| Thousand RON | 31 March 2022 |
Group 31 December 2021 |
31 March 2022 |
Bank 31 December 2021 |
|---|---|---|---|---|
| Debt securities at fair value through other items of comprehensive income |
||||
| -Treasury bills issued by the Ministry of Public (i) |
650,241 | 630,719 | 650,241 | 630,719 |
| -Debt securities issued by MAS SECURITIES BV |
33,421 | 33,737 | 33,421 | 33,737 |
| -Debt securities issued by AGRICOVER HOLDING S.A. |
7,480 | 8,056 | 7,480 | 8,056 |
| Equity investments at fair value through other comprehensive income |
- | - | - | - |
| -Equity investments | 10,344 | 10,344 | 10,344 | 10,344 |
| Total | 701,486 | 682,856 | 701,486 | 682,856 |
i) Treasury bills are issued by the Ministry of Public Finance of Romania and includes listed discounted treasury bills and bonds denominated in RON, EUR and USD. As of 31 March 2022 the Group has no assets pledged for Repo contracts (31 December 2020: the Group has no pledged assets for Repo Contracts).
The Group held the following equity investments FVOCI:
| Gr0up Bank |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 | 31 December 2021 | 31 March 2022 | 31 December 2021 | ||||||
| Nature of business |
Carring amount |
Effective Holding (%) |
Carring amount |
Effective Holding (%) |
Carring amount | Effective Holding (%) |
Carring amount |
Effective Holding (%) |
||
| Transfond SA | Clearing House | 7,812 | 5.69 | 7,812 | 5.69 | 7,812 | 5.69 | 7,812 | 5.69 | |
| Globinvest | Investments fund administrator |
2,142 | 19.99 | 2,142 | 19.99 | 2,142 | 19.99 | 2,142 | 19.99 | |
| Biroul de credit S.A. | Collection and processing of customer data |
59 | 0.32 | 59 | 0.32 | 59 | 0.32 | 59 | 0.32 | |
| SWIFT | Payment activities | 331 | 0.01 | 331 | 0.01 | 331 | 0.01 | 331 | 0.01 | |
| Total equity investments |
10,344 | 10,344 | 10,344 | 10,344 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor.
Page 22 from 57
| Thousand RON | 31 March 2022 |
Group 31 December 2021 |
31 March 2022 |
Bank 31 December 2021 |
|---|---|---|---|---|
| Collateral deposit Banca Transilvania S.A. Collateral deposit U.S. Bank N.A. Collateral deposit CITIBANK EUROPE PLC |
445 5,496 2,182 |
437 5,397 - |
445 5,496 2,182 |
437 5,397 - |
| Total | 8,123 | 5,834 | 8,123 | 5,834 |
The deposits to banks presented below include collateral deposits for settlement amounts from Visa and MasterCard related to cards activity.
| Thousand RON | Group 31 March 2022 |
31 December 2021 |
Bank 31 March 2022 |
31 December 2021 |
|---|---|---|---|---|
| Gross carrying amount of loans and advances to customers Credit loss allowance |
2,381,107 (138,163) |
2,295,659 (140,705) |
2,223,835 (128,013) |
2,159,647 (130,736) |
| Total net loans and advances to customers |
2,242,944 | 2,154,954 | 2,095,822 | 2,028,911 |
The structure of loan portfolio classified per main business lines is as follows:
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 December 2021 |
31 March 2022 |
31 December 2021 |
|
| Consumer loans Mortgage loans Loans to entrepreneurs |
177,175 324,842 283,265 |
176,921 312,461 256,227 |
176,793 324,842 145,403 |
176,541 312,461 137,558 |
|
| SME loans | 1,569,059 | 1,518,601 | 1,550,031 | 1,501,638 | |
| State and municipal organizations Total gross loans and advances to |
26,766 | 31,449 | 26,766 | 31,449 | |
| customers | 2,381,107 | 2,295,659 | 2,223,835 | 2,159,647 | |
| Less: Provision for loan impairment | (138,163) | (140,705) | (128,013) | (130,736) | |
| Total net loans and advances to customers |
2,242,944 | 2,154,954 | 2,095,822 | 2,028,911 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 23 from 57
Risk concentrations by economic sectors within the customer loan portfolio were as follows:
| Group | Bank | |||
|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 December 2021 |
31 March 2022 |
31 December 2021 |
| Loans to individuals | 502,017 | 489,382 | 501,636 | 489,002 |
| Loans to corporate customers: | 1,879,090 | 1,806,277 | 1,722,199 | 1,670,645 |
| Agriculture | 525,550 | 503,167 | 385,880 | 383,659 |
| Trade | 356,432 | 345,260 | 349,585 | 338,675 |
| Industry | 295,380 | 302,259 | 293,696 | 300,677 |
| Hotels and restaurants | 61,309 | 58,614 | 59,556 | 57,038 |
| Constructions | 207,502 | 197,273 | 204,897 | 194,828 |
| Transport | 93,679 | 86,255 | 91,069 | 83,772 |
| Professional Services | 32,484 | 33,534 | 31,349 | 32,381 |
| Services | 52,073 | 52,221 | 51,031 | 51,103 |
| Financial and real estate activities | 189,549 | 160,437 | 190,389 | 161,564 |
| Others | 26,840 | 26,400 | 26,723 | 26,376 |
| IT, research and development | 13,786 | 12,872 | 13,518 | 12,587 |
| Public Administration and Defence Total loans and advances to |
24,506 | 27,985 | 24,506 | 27,985 |
| customers before provisions | 2,381,107 | 2,295,659 | 2,223,835 | 2,159,647 |
| Less provision for impairment losses on loans |
(138,163) | (140,705) | (128,013) | (130,736) |
| Total | 2,242,944 | 2,154,954 | 2,095,822 | 2,028,911 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 24 from 57
The structure of the Group's loan portfolio classified by credit quality is as follows:
| 31 March 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Stage 1 | Stage 2 | Stage 3 | ||||||
| Thousand RON | Individual | Collective | Individual | Collective | Individual | Collective | POCI | Total |
| Performing loans | 354 | 1,916,133 | 35,475 | 229,565 | - | - | 1,050 | 2,182,577 |
| Non-performing loans | - | - | - | - | 92,141 | 50,760 | 55,629 | 198,530 |
| Total gross exposure | 354 | 1,916,133 | 35,475 | 229,565 | 92,141 | 50,760 | 56,679 | 2,381,107 |
| Less: Provision for loan impairment | (2) | (21,542) | (2,182) | (10,318) | (50,620) | (24,016) | (29,483) | (138,163) |
| Net Exposure | 352 | 1,894,591 | 33,293 | 219,247 | 41,521 | 26,744 | 27,196 | 2,242,944 |
| 31 December 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Stage 1 | Stage 2 | Stage 3 | ||||||
| Thousand RON | Individual | Collective | Individual | Collective | Individual | Collective | POCI | Total |
| Performing loans | - | 1,840,570 | 19,409 | 228,796 | - | - | 1,158 | 2,089,933 |
| Non-performing loans | - | - | - | - | 101,113 | 46,089 | 58,524 | 205,726 |
| Total gross exposure | - | 1,840,570 | 19,409 | 228,796 | 101,113 | 46,089 | 59,682 | 2,295,659 |
| Less: Provision for loan impairment | - | (19,651) | (1,155) | (11,341) | (53,959) | (23,575) | (31,024) | (140,705) |
| Net Exposure | - | 1,820,919 | 18,254 | 217,455 | 47,154 | 22,514 | 28,658 | 2,154,954 |
Notes 1 to 39 are part of the consolidated and separate financial statements.
(*) Unaudited / unrevised by the financial auditor.
Page 25 from 57
The structure of the Bank's loan portfolio classified by credit quality is as follows:
| 31 March 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Stage 1 | Stage 2 | Stage 3 | POCI | |||||
| Thousand RON | Individual | Collective | Individual | Collective | Individual | Collective | Total | |
| Performing loans | 354 | 1,776,283 | 27,756 | 229,565 | - | - | 1,050 | 2,035,008 |
| Non-performing loans | - | - | - | - | 92,141 | 41,057 | 55,629 | 188,827 |
| Total gross exposure | 354 | 1,776,283 | 27,756 | 229,565 | 92,141 | 41,057 | 56,679 | 2,223,835 |
| Less: Provision for loan impairment | (2) | (19,521) | (1,718) | (10,318) | (50,620) | (16,351) | (29,483) | (128,013) |
| Net Exposure | 352 | 1,756,762 | 26,038 | 219,247 | 41,521 | 24,706 | 27,196 | 2,095,822 |
| 31 December 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Stage 1 | Stage 2 | Stage 3 | ||||||
| Thousand RON | Individual | Collective | Individual | Collective | Individual | Collective | POCI | Total |
| Performing loans | - | 1,722,530 | 19,409 | 219,915 | - | - | 1,158 | 1,963,012 |
| Non-performing loans | - | - | - | - | 101,113 | 36,998 | 58,524 | 196,635 |
| Total gross exposure | - | 1,722,530 | 19,409 | 219,915 | 101,113 | 36,998 | 59,682 | 2,159,647 |
| Less: Provision for loan impairment |
- | (17,544) | (1,155) | (10,621) | (53,959) | (16,434) | (31,023) | (130,736) |
| Net Exposure | - | 1,704,986 | 18,254 | 209,294 | 47,154 | 20,564 | 28,659 | 2,028,911 |
Notes 1 to 39 are part of the consolidated and separate financial statements.
(*) Unaudited / unrevised by the financial auditor.
Page 26 from 57
Information about Group's collaterals is as follows:
| 31 March 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Thousand RON | SME loans | Consumer loans | Entreprenours loans |
Mortgage loans | State and municipal organizations |
Total | ||||
| Unsecured loans(*) | 306,949 | 152,831 | 80,403 | 5,001 | - | 545,184 | ||||
| Loans guaranteed by third parties, including credit | ||||||||||
| insurance | 396,946 | 409 | 148,666 | 6,816 | 222 | 553,059 | ||||
| Loans collateralized by: | 865,164 | 23,935 | 54,196 | 313,025 | 26,544 | 1,282,864 | ||||
| - residential real estate |
85,354 | 20,229 | 9,680 | 305,966 | - | 421,229 | ||||
| - other real estate |
668,695 | 2,449 | 21,896 | 6,944 | - | 699,984 | ||||
| - cash collateral |
10,041 | 1,257 | 425 | 115 | - | 11,838 | ||||
| - other assets |
101,074 | - | 22,195 | - | 26,544 | 149,813 | ||||
| Total loans and advances to customers | 1,569,059 | 177,175 | 283,265 | 324,842 | 26,766 | 2,381,107 |
| 31 December 2021 | ||||||
|---|---|---|---|---|---|---|
| Thousand RON | SME loans | Consumer loans | Entreprenours loans |
Mortgage loans | State and municipal organizations |
Total |
| Unsecured loans(*) Loans guaranteed by third parties, including credit |
267,863 | 148,323 | 70,117 | 5,446 | - | 491,749 |
| insurance | 381,597 | 438 | 125,853 | 6,981 | 413 | 515,282 |
| Loans collateralized by: | 869,141 | 28,160 | 60,257 | 300,034 | 31,036 | 1,288,628 |
| - residential real estate |
82,590 | 21,227 | 10,149 | 292,633 | - | 406,599 |
| - other real estate |
664,261 | 2,537 | 20,070 | 7,284 | - | 694,152 |
| - cash collateral |
10,827 | 4,396 | 438 | 117 | - | 15,778 |
| - other assets |
111,463 | - | 29,600 | - | 31,036 | 172,099 |
| Total loans and advances to customers | 1,518,601 | 176,921 | 256,227 | 312,461 | 31,449 | 2,295,659 |
Notes 1 to 39 are part of the consolidated and separate financial statements.
(*) Unaudited / unrevised by the financial auditor.
Page 27 from 57
Information about Bank's collaterals is as follows:
| 31 March 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Thousand RON | SME loans | Consumer loans | Entreprenours loans |
Mortgage loans | State and municipal organizations |
Total | ||
| Unsecured loans(*) | 304,094 | 152,765 | 21,993 | 5,001 | - | 483,853 | ||
| Loans guaranteed by third parties, including credit | ||||||||
| insurance | 387,606 | 409 | 77,151 | 6,816 | 222 | 472,204 | ||
| Loans collateralized by: | 858,331 | 23,619 | 46,259 | 313,025 | 26,544 | 1,267,778 | ||
| - residential real estate |
82,020 | 20,162 | 6,763 | 305,966 | - | 414,911 | ||
| - other real estate |
667,128 | 2,200 | 20,135 | 6,944 | - | 696,407 | ||
| - cash collateral |
10,041 | 1,257 | 425 | 115 | - | 11,838 | ||
| - other assets |
99,142 | - | 18,936 | - | 26,544 | 144,622 | ||
| Total loans and advances to customers |
1,550,031 | 176,793 | 145,403 | 324,842 | 26,766 | 2,223,835 |
| 31 December 2021 | ||||||
|---|---|---|---|---|---|---|
| Thousand RON | SME loans | Consumer loans | Entreprenours loans |
Mortgage loans | State and municipal organizations |
Total |
| Unsecured loans(*) | 265,310 | 148,258 | 16,962 | 5,446 | - | 435,976 |
| Loans guaranteed by third parties, including credit | ||||||
| insurance | 373,497 | 438 | 68,112 | 6,981 | 413 | 449,441 |
| Loans collateralized by: | 862,831 | 27,845 | 52,484 | 300,034 | 31,036 | 1,274,230 |
| - residential real estate |
79,834 | 21,162 | 7,251 | 292,633 | - | 400,880 |
| - other real estate |
662,557 | 2,287 | 18,315 | 7,284 | - | 690,443 |
| - cash collateral |
10,827 | 4,396 | 438 | 117 | - | 15,778 |
| - other assets |
109,613 | - | 26,480 | - | 31,036 | 167,129 |
| Total loans and advances to customers | 1,501,638 | 176,541 | 137,558 | 312,461 | 31,449 | 2,159,647 |
*Unsecured loans represents exposures or part of exposures that are not covered by the market value of collaterals for collateral types deductible, according to IFRS9 provisioning methodology.
Notes 1 to 39 are part of the consolidated and separate financial statements.
(*) Unaudited / unrevised by the financial auditor.
Page 28 from 57
| Thousand RON | 31 March 2022 |
Group 31 December 2021 |
31 March 2022 |
Bank 31 December 2021 |
|---|---|---|---|---|
| Treasury bills issued by the Ministry of Public Finance of Romania |
229,137 | 219,769 | 229,137 | 219,769 |
| Bonds issued by Alpha Bank Bonds issued by LIBRA INTERNET BANK S.A. |
24,816 15,080 |
24,764 14,930 |
24,816 15,080 |
24,764 14,930 |
| Total | 269,033 | 259,463 | 269,033 | 259,463 |
| Group | Bank | |||
|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 December 2021 |
31 March 2022 |
31 December 2021 |
| Balance at 1 January | 118,871 | 115,823 | 118,871 | 115,823 |
| Transfers from/(to) fixed assets held for sale | - | 6,108 | - | 6,108 |
| (Sales) | (5,045) | (4,809) | (5,045) | (4,809) |
| Net gain / (loss) from revaluation of investment property |
474 | 2,071 | 474 | 2,071 |
| Value increases (-) Provisions for impairment losses |
6 - |
78 (400) |
6 - |
78 (400) |
| Balance at the end of the period | 114,306 | 118,871 | 114,306 | 118,871 |
The structure of investments in subsidiaries is as follows:
| Thousand RON | 31 March 2022 31 December 2021 |
|||||
|---|---|---|---|---|---|---|
| Subsidiary name | Gross value |
Impairment adjustments |
Net value |
Gross value |
Impairment adjustments |
Net value |
| Patria Credit IFN | 32,522 | - | 32,522 | 32,522 | - | 32,522 |
| SAI Patria Asset Management S.A. |
1,774 | - | 1,774 | 1,774 | - | 1,774 |
| Carpatica Invest S.A. | 6,807 | (6,807) | - | 6,807 | (6,807) | - |
| Total | 41,103 | (6,807) | 34,296 | 41,103 | (6,807) | 34,296 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 29 from 57
| Bank | ||||
|---|---|---|---|---|
| 31 March 2022 |
31 December 2021 |
31 March 2022 |
31 December 2021 |
|
| 7,787 | 7,537 | 7,787 | 7,537 | |
| 7,561 | 9,651 | 7,254 | 9,362 | |
| 240 | - | 240 | - | |
| 9,253 | 8,529 | 8,303 | 8,000 | |
| 2 | - | 799 | 839 | |
| (10,858) | (10,757) | (10,699) | (10,595) | |
| 15,143 | ||||
| 13,985 | Group 14,960 |
13,684 |
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 December 2021 |
31 March 2022 |
31 December 2021 |
|
| Sundry debtors | 136 | 117 | 117 | 97 | |
| Prepayments | 7,676 | 3,954 | 7,635 | 3,906 | |
| Income tax to recover | 2,519 | 2,584 | 2,853 | 2,853 | |
| Other assets | 1,748 | 1,753 | 1,582 | 1,587 | |
| Total | 12,079 | 8,408 | 12,187 | 8,443 |
| Thousand RON | 31 March 2022 |
Group 31 December 2021 |
31 March 2022 |
Bank 31 December 2021 |
|---|---|---|---|---|
| Goodwill Other intangible assets |
20,103 26,655 |
20,103 26,902 |
20,103 25,778 |
20,103 26,036 |
| Total | 46,758 | 47,005 | 45,881 | 46,139 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 30 from 57
The cost movements of intangible assets and amortisation are the following:
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 December 2021 |
31 March 2022 |
31 December 2021 |
|
| Balance at 1 January | 91,964 | 84,434 | 86,354 | 79,093 | |
| Acquisitions | 3,729 | 15,197 | 3,625 | 14,926 | |
| -transfers from intangible assets in progress |
2,097 | 7,494 | 2,097 | 7,494 | |
| Release of intangible assets in progress | (2,097) | (7,494) | (2,097) | (7,494) | |
| Disposals | - | (173) | - | (171) | |
| Balance at the end of the period | 93,596 | 91,964 | 87,882 | 86,354 | |
| Cumulative amortisation | |||||
| Balance at 1 January | 44,959 | 38,557 | 40,215 | 34,211 | |
| Amortisation and impairment expense | 1,257 | 4,010 | 1,250 | 3,953 | |
| Expense with acquisition clients list and brand |
622 | 2,487 | 536 | 2,144 | |
| Disposals | - | (95) | - | (93) | |
| Balance at the end of the period | 46,838 | 44,959 | 42,001 | 40,215 | |
| Net carrying amount | |||||
| Balance at 1 January | 47,005 | 45,877 | 46,139 | 44,882 | |
| Balance at the end of the period | 46,758 | 47,005 | 45,881 | 46,139 |
| Group | |||||
|---|---|---|---|---|---|
| Thousand RON | Land and buildings |
Furniture and equipment |
31 March 2022 Means of transport |
Assets in the course of construction |
Total |
| Cost | |||||
| Balance at 1 January | 106,565 | 80,710 | 6,494 | 873 | 194,642 |
| Acquisitions and transfers from assets under construction |
212 | 191 | - | 304 | 707 |
| Outflows, transfer from assets under construction, writte-offs |
- | - | - | (432) | (432) |
| Right of use - new contracts | 1,089 | - | 18 | - | 1,107 |
| Right of use (early termination of lease contracts) |
- | (6,137) | - | - | (6,137) |
| Balance at the end of the period | 107,866 | 74,764 | 6,512 | 745 | 189,887 |
| Cumulative depreciation | |||||
| Balance at 1 January | 30,518 | 66,992 | 4,237 | - | 101,747 |
| Amortization expense | 2,197 | 1,108 | 310 | - | 3,615 |
| Impairment expense | - | 104 | - | - | 104 |
| Outflows | (13) | - | - | - | (13) |
| Balance at the end of the period | 32,702 | 68,204 | 4,547 | - | 105,453 |
| Net carrying amount | |||||
| Balance at 1 January | 76,047 | 13,718 | 2,257 | 873 | 92,895 |
| Balance at the end of the period | 75,164 | 6,560 | 1,965 | 745 | 84,434 |
| 31 December 2021 | |||||
|---|---|---|---|---|---|
| Thousand RON | Land and buildings |
Furniture and equipment |
Means of transport |
Assets in the course of construction |
Total |
| Cost | |||||
| Balance at 1 January | 95,626 | 72,622 | 6,374 | 1,447 | 176,069 |
| Acquisitions and transfers from assets under construction |
1,199 | 1,353 | - | 2,497 | 5,049 |
| Outflows, transfer from assets under construction, writte-offs |
6,460 | - | - | - | 6,460 |
| Outflows, transfer from assets under construction, writte-offs |
(1,802) | (47) | (102) | (3,071) | |
| Right of use - new contracts | 8,510 | 6,782 | 222 | - | 15,514 |
| Right of use (early termination of lease contracts) |
(3,428) | - | - | - | (3,428) |
| Balance at 31 December | 106,565 | 80,710 | 6,494 | 873 | 194,642 |
| Cumulative depreciation | |||||
| Balance at 1 January | 21,988 | 61,099 | 3,021 | - | 86,108 |
| Amortization expense | 12,041 | 5,689 | 1,305 | - | 19,035 |
| Impairment expense | - | 250 | - | - | 250 |
| Outflows | (3,511) | (46) | (89) | - | (3,646) |
| Balance at 31 December | 30,518 | 66,992 | 4,237 | - | 101,747 |
| Net carrying amount | |||||
| Balance at 1 January | 73,638 | 11,523 | 3,353 | 1,447 | 89,961 |
| Balance at 31 December | 76,047 | 13,718 | 2,257 | 873 | 92,895 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 32 from 57
(All amounts are in Thousand RON)
| Bank 31 March 2022 |
|||||||
|---|---|---|---|---|---|---|---|
| Thousand RON | Land and buildings |
Furniture and equipment |
Means of transport |
Assets in the course of construction |
Total | ||
| Cost | |||||||
| Balance at 1 January | 104,067 | 79,668 | 5,803 | 873 | 190,411 | ||
| Acquisitions and transfers from assets under construction |
212 | 191 | - | 303 | 706 | ||
| Outflows, transfer from assets under construction, writte-offs |
- | - | - | (432) | (432) | ||
| Right of use - new contracts | 1,004 | - | - | - | 1,004 | ||
| Right of use (early termination of lease contracts) |
- | (6,137) | - | - | (6,137) | ||
| Balance at the end of the period | 105,283 | 73,722 | 5,803 | 744 | 185,552 | ||
| Cumulative depreciation | |||||||
| Balance at 1 January | 29,157 | 66,305 | 3,914 | - | 99,376 | ||
| Amortization expense | 2,075 | 1,080 | 271 | - | 3,426 | ||
| Impairment expense | - | 104 | - | - | 104 | ||
| Outflows | (13) | - | - | - | (13) | ||
| Balance at the end of the period | 31,219 | 67,489 | 4,185 | - | 102,893 | ||
| Net carrying amount | |||||||
| Balance at 1 January | 74,910 | 13,363 | 1,889 | 873 | 91,035 | ||
| Balance at the end of the period | 74,064 | 6,233 | 1,618 | 744 | 82,659 |
| 31 December 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Thousand RON | Land and buildings |
Furniture and equipment |
Means of transport |
Assets in the course of construction |
Total | |||
| Cost | ||||||||
| Balance at 1 January | 92,962 | 71,661 | 5,800 | 1,448 | 171,871 | |||
| Acquisitions and transfers from assets under construction |
1,128 | 1,225 | - | 2,496 | 4,849 | |||
| Transfer from IFRS 5 | 6,460 | - | - | - | 6,460 | |||
| Outflows, transfer from assets under construction, writte-offs |
(1,802) | - | (102) | (3,071) | (4,975) | |||
| Right of use - new contracts | 8,036 | 6,782 | 105 | - | 14,923 | |||
| Right of use (early termination of lease contracts) |
(2,717) | - | - | - | (2,717) | |||
| Balance at 31 December | 104,067 | 79,668 | 5,803 | 873 | 190,411 | |||
| Cumulative depreciation | ||||||||
| Balance at 1 January | 20,768 | 60,519 | 2,823 | - | 84,110 | |||
| Amortization expense | 11,594 | 5,536 | 1,180 | - | 18,310 | |||
| Impairment expense | - | 250 | - | - | 250 | |||
| Outflows | (3,205) | - | (89) | - | (3,294) | |||
| Balance at 31 December | 29,157 | 66,305 | 3,914 | - | 99,376 | |||
| Net carrying amount | ||||||||
| Balance at 1 January Balance at 31 December |
72,194 74,910 |
11,142 13,363 |
2,977 1,889 |
1,448 873 |
87,761 91,035 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 33 from 57
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 December 2021 |
31 March 2022 |
31 December 2021 |
|
| Sight deposits | 49,466 | 14,844 | 49,466 | 14,844 | |
| Term deposits | 45018 | - | 45,018 | - | |
| Collateral deposits | 495 | 495 | 495 | 495 | |
| Transitory amounts | 10912 | 2,973 | 10,912 | 2,973 | |
| Total | 105,891 | 18,312 | 105,891 | 18,312 |
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 December 2021 |
31 March 2022 |
31 December 2021 |
|
| Retail customers | |||||
| Current accounts | 300,997 | 336,660 | 300,997 | 336,660 | |
| Term deposits | 1,606,134 | 1,657,796 | 1,606,134 | 1,657,796 | |
| Collateral deposits | 4,404 | 8,345 | 4,404 | 8,345 | |
| Corporate customers | |||||
| Current accounts | 338,690 | 378,228 | 341,097 | 382,381 | |
| Sight deposits | 120,030 | 11,265 | 120,030 | 11,265 | |
| Term deposits | 783,970 | 874,335 | 787,642 | 878,868 | |
| Collateral deposits | 33,778 | 33,605 | 33,778 | 33,605 | |
| Amounts in transit | 4,145 | 5,925 | 4,145 | 5,926 | |
| Total | 3,192,148 | 3,306,159 | 3,198,227 | 3,314,846 |
Risk concentrations by economic sectors within the deposits from customers portfolio were as follows:
| Thousands RON | Bank | ||||||
|---|---|---|---|---|---|---|---|
| 31 March 2022 Percentage of |
31 December 2021 Percentage of |
||||||
| Amount | total deposits(%) |
Amount | total deposits(%) |
||||
| Retail customers | 1,911,535 | 59.77 | 2,002,801 | 60.42 | |||
| Corporate customers | 1,176,657 | 36.79 | 1,150,671 | 34.71 | |||
| Financial and real estate activities | 489,846 | 15.32 | 474,947 | 14.33 | |||
| Industry | 83,295 | 2.60 | 74,675 | 2.25 | |||
| Others | 91,647 | 2.87 | 105,530 | 3.18 | |||
| Constructions | 73,615 | 2.30 | 82,958 | 2.50 | |||
| IT, research and development | 10,481 | 0.33 | 7,598 | 0.23 | |||
| Trade | 108,575 | 3.39 | 135,569 | 4.09 | |||
| Transport | 46,530 | 1.45 | 56,272 | 1.70 | |||
| Professional Services | 39,358 | 1.23 | 43,058 | 1.30 | |||
| Services | 137,721 | 4.31 | 52,266 | 1.58 | |||
| Agriculture | 83,380 | 2.61 | 103,722 | 3.13 | |||
| Hotels and restaurants | 12,209 | 0.38 | 14,076 | 0.42 | |||
| Public Administration and Defense | 110,035 | 3.44 | 161,374 | 4.87 | |||
| Total | 3,198,227 | 100.00 | 3,314,846 | 100.00 |
| Thousand RON | 31 March 2022 |
Group 31 December 2021 |
31 March 2022 |
Bank 31 December 2021 |
|---|---|---|---|---|
| Financing name EFSE - European Fund for Southeast Europe (i) |
27,977 | 27,926 | - | - |
| First Bank S.A.(ii) | 21,236 | 8,460 | - | - |
| Raiffeisen Bank S.A. (iii) | 11,969 | 11,229 | - | - |
| Symbiotics Sicav (Lux.) (iv) | 16,019 | 22,371 | - | - |
| Casa de Economii si Consemnatiuni (v) | 29,617 | 19,610 | - | - |
| Garanti Bank International N.V. (vi) | 8,984 | 9,781 | - | - |
| Total | 115,802 | 99,377 | - | - |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 35 from 57
In November 2018, the Group obtained a financing agreement from EFSE, amounting RON 9,300 thousand. The loan provides for quarterly repayments in 8 equal instalments, after a grace period for the principal of 15 months, with a ROBOR variable interest rate of 3 months plus margins and final maturity on 15 December 2021.
In November 2019, the Group obtained a financing agreement from EFSE, amounting RON 11,900 thousand. The loan provides for quarterly repayments in 9 equal instalments, with a ROBOR variable interest rate of 3 months plus margins and final maturity on 15 November 2022.
In December 2020, the Group obtained a financing agreement from EFSE, amounting RON 17,000 thousand. The loan provides a variable interest rate of ROBOR 3 months plus margin and final maturity on 15 December 2023.
In December 2021, the Group obtained a new loan facility from EFSE, amounting RON 19,600 thousand. The loan provides a variable interest rate of ROBOR 3 months plus margin and final maturity on 15 December 2024.
In December 2021, the Group obtained a new financing contract from EFSE, amounting to 19,600 thousand RON. The loan provides for a variable ROBOR interest rate at 3 months plus the margin and final maturity on December 15, 2024.
The total outstanding loan from EFSE as at 31 March 2022 is RON 27,977 thousand.
In August 2021, the Group obtained a loan facility from First Bank S.A. amounting RON 12,900 thousand for a period of one year. The loan provides a variable interest rate of ROBOR 3 months plus margin 2.9% and final maturity on 24 August 2022.
In August 2021, the Group also obtained a loan facility from First Bank S.A. amounting RON 2,100 thousand for 2 years period. The loan provides a variable interest rate of ROBOR 3 months plus margin 3.2% and final maturity on 24 November 2023.
In February 2022 the Group obtained the increase of the credit facility (Overdraft) with the amount of 9,900 thousand RON up to the maximum ceiling of 22,800 thousand RON, and the extension of the facility until 10.02.2023 in accordance with additional act no. 1 of 10.02 .2022.
The annual interest rate remains ROBOR at 3 months plus a margin of 2.9 percentage points per year.
The total outstanding loan from First Bank at 31 March 2022 is RON 21,236 thousand.
In May 2018, the Group obtained a loan facility from Raiffeisen Bank in amount of RON 7,032 thousand for 3 years period. The loan provides a variable interest rate of ROBOR 1 months plus margin and final maturity on 20 May 2021. In July 2021, the value of the loan has been increased to RON 12,000 thousand with a maturity on 20 July 2024.
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 36 from 57
In February 2022, the Group used the amount of 729.5 thousand lei from the revolving facility from Raiffeisen Bank.
The total outstanding loan from Raiffeisen Bank at 31 March 2022 is RON 11,969 thousand.
(iv) Symbiotics Sicav (Lux.)
In December 2018 the Group obtained a loan facility from Symbiotics in total amount of RON 4,100 thousand for 3 years. The loan provides a variable interest rate of ROBOR 3 months plus margin and final maturity on 21 December 2021.
In January 2019 the Group obtained a loan facility from Symbiotics in total amount of RON 5,200 thousand for 3 years. The loan provides a variable interest rate of ROBOR 3 months plus margin and final maturity on 31 January 2022.
In April 2019 the Group obtained a loan facilities from Symbiotics in total amount of RON 4,800 thousand for 2 and 3 years respectively. The loans provides a variable interest rate of ROBOR 3 months plus margin and final maturity on 5 April 2021 for the loan amounting RON 2,400 thousand, and final maturity on 11 April 2022 for the loan amounting RON 2,400 thousand.
In February 2020 the Group obtained a loan facility from Symbiotics in total amount of RON 4,750 thousand for 3 years. The loan provides a variable interest rate of ROBOR 3 months plus margin and final maturity on 10 February 2023.
In March 2020 the Group obtained a loan facility from Symbiotics in total amount of RON 2,400 thousand for 3 years. The loan provides a variable interest rate of ROBOR 3 months plus margin and final maturity on 12 March 2023.
In February 2021 the Group obtained two new loan facilities from Symbiotics in total amount of RON 6,250 thousand for 2 years : the first loan amounting RON 2,500 provides a fixed interest rate of 5.75% with final maturity on 25 May 2023, the second loan amounting RON 3,750 thousand provides a fixed interest rate of 5.65% with final maturity on 25 February 2023.
In March 2021 the Group obtained a new loan facility from Symbiotics in total amount of RON 3,750 thousand for 3 years. The loan provides a fixed interest rate of 6.1% and final maturity on 12 March 2024.
On 31.03.2022, the balance of the loan facilities from Symbiotics decreased by the amount of 6,175 thousand RON due to the principal repayments as follows:
In January 2022, the Group repaid to Symbiotics the last principal installment in the amount of 2,600 thousand RON of the loan facility obtained in January 2019 in the total amount of 5,200 thousand RON. In February 2022, the Group repaid to Symbiotics the amount of 2,375 thousand RON from the loan facility obtained in February 2020 in a total amount of 4,750 thousand RON.
In March 2022, the Group repaid to Symbiotics the amount of 1,200 thousand RON from the credit facility obtained in March 2020 in a total amount of 2,400 thousand RON.
The total outstanding loan from Symbiotics at 31 March 2022 is RON 16,019 thousand.
In November 2020, the Group obtained a loan facility from CEC Bank S.A. in the total amount of 9,700 thousand RON for a period of 2 years. In April 2021, the value of the loan is modified to 19,700 thousand RON by the additional act no. 1 from 19.04.2021. The loan has a variable interest rate of ROBOR at 3 months plus a margin of 2.5% and a final maturity on October 28, 2022.
In February 2022, the Group obtained the increase of the credit facility with the amount of 10,000 thousand RON up to the maximum ceiling of 29,700 thousand RON, and the extension of the facility until 27.10.2023 in accordance with additional act no. 2 of 23.02.2022.
All other clauses in the contract remain in force.
The total outstanding loan from CEC Bank at 31 March 2022 is RON 29,617 thousand.
In September 2021, the Group obtained a new loan facility from Garanti Bank S.A. in amount of RON 9,800 thousand for 2 years period. The loan provides a variable interest rate of ROBOR 3 months plus margin and final maturity on 1 July 2023.
The total outstanding loan from Garanti Bank S.A. at 31 March 2022 is RON 8,984 thousand.
The loans from international financial institutions are unsecured credit facilities, arranged under negative pledge, pari passu clauses. According to each loan agreement, the Group shall all time comply with a set of financial undertakings (covenants).
As of 31 March 2022, the Group complied with all the covenants included in the loan agreements.
| Thousand RON | 31 March 2022 |
Group 31 December 2021 |
31 March 2022 |
Bank 31 December 2021 |
|---|---|---|---|---|
| Financial liabilities to owners of fund units |
97,694 | 86,227 | - | - |
| Derivative financial instruments | - | 130 | - | 130 |
| Other financial liabilities | 19,991 | 23,775 | 17,093 | 20,777 |
| Lease liabilities IFRS 16 | 26,488 | 33,709 | 25,721 | 32,925 |
| Total | 144,173 | 143,841 | 42,814 | 53,832 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 38 from 57
| Thousand RON | 31 March 2022 |
Group 31 December 2021 |
31 March 2022 |
Bank 31 December 2021 |
|---|---|---|---|---|
| Provisions for loan commitments and financial guarantees |
1,675 | 2,177 | 1,675 | 2,178 |
| Provisions for personnel expenses Provisions for litigations Other provisions |
4,653 2,799 2,954 |
3,373 2,609 2,954 |
3,944 2,782 2,806 |
2,774 2,600 2,805 |
| Total | 12,081 | 11,113 | 11,207 | 10,357 |
The provision for credit commitments represents the specific provisions calculated for losses on financial guarantees or credit commitments for customers whose financial situation has deteriorated. Personnel expenses provision relates to accruals for untaken holidays, the restructuring provision, the provision regarding the employees' participation in the profit as well as the related taxes.
| Thousand RON | 31 March 2022 |
Group 31 December 2021 |
31 March 2022 |
Bank 31 December 2021 |
|---|---|---|---|---|
| Other liabilities State budget debts Other income to be received |
4431 3544 556 |
146 3,008 550 |
3,242 3,176 556 |
91 2,747 548 |
| Total | 8,531 | 3,704 | 6,974 | 3,386 |
| Group | Bank | |||
|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 December 2021 |
31 March 2022 |
31 December 2021 |
| Balance at 1 January | 34,896 | 34,555 | 24,797 | 24,403 |
| Repayments | (14,840) | - | (14,840) | - |
| Other movements & FX differences | (16) | 341 | 125 | 394 |
| Balance at the end of the period | 20,040 | 34,896 | 10,082 | 24,797 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 39 from 57
The Group has the following outstanding subordinated loans as of March 31, 2022:
| Thousand RON | Group 31 March 31 December 2022 2021 |
Bank 31 March 31 December 2022 2021 |
||
|---|---|---|---|---|
| Debt securities in issue | 63,187 | 64,174 | 63,187 | 64,174 |
| Total | 63,187 | 64,174 | 63,187 | 64,174 |
As of March 31, 2022 and December 31, 2021, the Group has 2 debt securities in issues as follows:
The Debt securities in issue are included in Patria Bank's Tier 2 Capital following the National Bank of Romania approval (October 26, 2020 for the debt isseued in 2020 and October 10, 2019 for the debt issued in 2019) .
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 40 from 57
| Thousand RON | Group 31 March 2022 |
31 December 2021 |
Bank 31 March 2022 |
31 December 2021 |
|---|---|---|---|---|
| Share Capital according to Trade Register |
311,533 | 311,533 | 311,533 | 311,533 |
| Share capital increase | 16,348 | - | 16,348 | - |
| Other adjustments of the Share Capital |
2,250 | 2,250 | 2,250 | 2,250 |
| Share premium | 2,050 | 2,050 | 2,050 | 2,050 |
| Share capital under IFRS | 332,181 | 315,833 | 332,181 | 315,833 |
The main shareholders are presented below:
| 31 March 2022 | 31 December 2021 | ||||
|---|---|---|---|---|---|
| Number of shares Patria Bank |
Percentage of ownership (%) |
Number of shares Patria Bank |
Percentage of ownership (%) |
||
| Name of the shareholder | |||||
| EEAF Financial Services B.V. | 2,755,927,215 | 84.05 | 2,592,620,715 | 83.22 | |
| Individuals | 456,551,621 | 13.92 | 456,357,973 | 14.65 | |
| Legal entities | 66,335,540 | 2.02 | 66,351,887 | 2.13 | |
| Total | 3,278,814,376 | 100.00 | 3,115,330,575 | 100.00 |
(*)No individual holds more than 10% of the shares.
| 31 March 2022 | 31 December 2021 | |
|---|---|---|
| Number of shares at the beginning of the period | 3,115,330,575 | 3,115,330,575 |
| Share capital increase | 163,483,801 | - |
| Number of shares at the end of the period | 3,278,814,376 | 3,115,330,575 |
Earnings per share are calculated by dividing the net result by the weighted average number of ordinary shares issued, as follows:
| 31 March 2022 | No. of shares in movement | No. days |
|---|---|---|
| No. of shares 01.01.2022-26.01.2022 | 3,115,330,575 | 26 |
| No. of shares 27.01.2022-31.03.2022(Share capital increase) | 3,278,814,376 | 64 |
| Average no. of shares | 3,231,585,722 | 90 |
| Result of the period at 31.03.2022 | 2,147,299 | |
| Profit per share (RON/share) | 0.0007 |
| 31 March 2021 | No. of shares in movement | No. days |
|---|---|---|
| No. of shares 01.01.2021-31.03.2021 | 3,115,330,575 | 90 |
| Average no. of shares | 3,115,330,575 | 90 |
| Result of the period at 31.03.2021 | 2,382,683 | |
| Profit per share (RON/share) | 0.0008 |
| 31 March 2022 | No. of shares in movement | No. days |
|---|---|---|
| No. of shares 01.01.2022-26.01.2022 | 3,115,330,575 | 26 |
| No. of shares 27.01.2022-31.03.2022(Share capital increase) | 3,278,814,376 | 64 |
| Average no. of shares | 3,231,585,722 | 90 |
| Result of the period at 31.03.2022 | 881,594 | |
| Profit per share (RON/share) | 0.0003 |
| 31 March 2021 | No. of shares in movement | No. days |
|---|---|---|
| No. of shares 01.01.2021-31.03.2021 | 3,115,330,575 | 90 |
| Average no. of shares | 3,115,330,575 | 90 |
| Result of the period at 31.03.2021 | 453,101 | |
| Profit per share (RON/share) | 0.0001 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 42 from 57
The disclosure Segment Reporting as required by IFRS 8 is presented only on the elements of the Statement of Financial Position for:
Considering the following criteria the Bank does not report a full disclosure for Segment Reporting:
| Thousand RON | 31 March 2022 |
Group 31 December 2021 |
31 March 2022 |
Bank 31 December 2021 |
|---|---|---|---|---|
| Reserves from revaluation of financial assets at fair value through other items of comprehensive income |
(21,277) | (5,840) | (21,277) | (5,840) |
| Revaluation reserve for premises | 37,189 | 39,659 | 35,477 | 37,949 |
| Statutory legal reserve | 13,640 | 13,641 | 13,524 | 13,524 |
| Other Reserves | 14,678 | 14,678 | 14,678 | 14,678 |
| Total | 44,230 | 62,138 | 42,402 | 60,311 |
Statutory reserves represent accumulated transfers from retained earnings in accordance with relevant local regulations. These reserves are not distributable. Local legislation requires 5% of the Group's and its subsidiaries net statutory profit to be transferred to a non-distributable statutory reserve until such time this reserve represents 20% of the statutory share capital.
Reserves for general banking risks include amounts set aside in accordance with the Banking legislation and are separately disclosed as appropriations of statutory profit. These reserves are not distributable. According to the Romanian legislation in force the reserves for general banking risks were set aside starting with 2004 financial year until the end of the 2006 financial year.
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 43 from 57
The primary purpose of these instruments is to ensure that funds are available to a customer as required. Guarantees and standby letters of credit, which represent irrevocable assurances that the Group will make payments in the event that a customer cannot meet its obligations to third parties, carry the same credit risk as loans. Documentary and commercial letters of credit, which are written undertakings by the Group under specific terms and conditions, are collateralised by the underlying shipments of goods to which they relate or cash deposits and, therefore, carry less risk than a direct borrowing.
Commitments to extend credit represent unused portions of authorisations to extend credit in the form of loans, guarantees or letters of credit. With respect to credit risk on commitments to extend credit, the Group is potentially exposed to loss in an amount equal to the total unused commitments, if the unused amounts were to be drawn down. However, the likely amount of loss is less than the total unused commitments since most commitments to extend credit are contingent upon customers maintaining specific credit standards. The Group monitors the term to maturity of credit related commitments, because longer-term commitments generally have a greater degree of credit risk than shorter-term commitments.
Outstanding loan commitments have a commitment period that does not extend beyond the normal underwriting and settlement period.The Group provides also letter of guarantees and letters of credit on behalf of the customers. The contractual amounts of commitments and contingent liabilities are set out in the following table by category. Many of the contingent liabilities and commitments expire without being funded in whole or in part, therefore, the amounts do not represent expected future cash flows.
The amounts reflected in the table as commitments assume that amounts are fully advanced. The amounts reflected in the table as guarantees and letters of credit represent the maximum accounting loss that would be recognized at the balance sheet date if counterparties failed completely to perform as contracted.
For provisions for credit related commitments refer to Note 28.
Provision methodology for computing expected credit loss for credit commitments is the same as for the on balance exposures , the only difference being the credit conversion factor applied for transforming the undrawn. in Regarding the CCF component, the Bank decided to use the regulatory CCFs.
| Thousand RON | 31 March 2022 |
Group 31 December 2021 |
31 March 2022 |
Bank 31 December 2021 |
|---|---|---|---|---|
| Letters of guarantees Commitments of granted credits |
9,641 296,120 |
10,647 333,450 |
9,641 294,900 |
10,647 332,987 |
| Total | 305,761 | 344,097 | 304,541 | 343,634 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 44 from 57
Romanian tax legislation includes the arm's length principle according to which transactions between related parties should be carried out at market value. Local taxpayers engaged in related party transactions have to prepare and make available upon the written request of the Romanian Tax Authorities their transfer pricing documentation file.
Failure to present the transfer pricing documentation file, or presenting an incomplete file, may lead to noncompliance penalties; additionally, notwithstanding the contents of the transfer pricing documentation, the tax authorities may interpret the facts and transactions differently from management and impose additional tax liabilities resulting from transfer price adjustments. Despite the fact that the tax authorities might challenge the implementation of the transfer pricing requirements by the Group, the Group's management believes that will not suffer losses in case of a fiscal inspection on the subject of transfer prices. However, the impact of any change of the tax authorities can't be estimated reliably. It may be significant for the financial situation and / or the overall operations of the entity.
At 31 March 2022, the provision for litigation, in which the Group is involved as defendant is in amount of RON 1,644 thousand (31 December 2021: RON 1,397 thousand).
The management of the Group considers that they will have no material adverse effect on the results and the financial position.
Provisions for litigations are made mainly for disputes that concern the actions of borrower's private individuals, by requesting cancellation of clauses deemed unfair in credit agreements.
Parties are generally considered to be related if the parties are under common control, or one party has the ability to control the other party or can exercise significant influence over the other party in making financial or operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely the legal form.
The Group entered into a number of transactions with its related parties in the normal course of business. These transactions were carried out in the normal course of business on commercial terms and conditions and at market rates.
The Group performed related party transactions during period ended 31 March 2022 with EEAF Financial Services B.V. (immediate parent), the members of the Board of Directors, the members of the Executive Management and Bank's employees that hold key-functions.
EEAF Financial Services B.V.(EEAFSBV) is owned and fully controlled by Emerging Europe Accesion Fund Cooperatief UA.
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 45 from 57
The Group's income and expense items with related parties are as follows:
| 31 martie 2022 | 31 decembrie 2021 | |||||||
|---|---|---|---|---|---|---|---|---|
| Mii LEI | Immediate parent company |
Other affiliated entities |
Key personnel |
Other affiliated parties |
Immediate parent company |
Other affiliated entities |
Key personnel |
Other affiliated parties |
| Interest and similar income calculated using the effective interest rate |
- | 583 | 2 | - | - | - | 31 | 1,378 |
| Interest and similar expense | - | (28) | (1) | - | (749) | - | (548) | (47) |
| Fee and commission income | - | 3 | - | - | - | - | - | 13 |
| Net charge with impairment of financial assets | - | (153) | - | - | - | - | - | (847) |
| Other operating and administrative expenses | - | - | (7) | - | - | - | (10) | - |
| Dividends income | - | 5 | - | - | - | 818 | - | - |
The Group's outstanding balances with related parties were as follows:
| 31 martie 2022 | 31 decembrie 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Mii LEI | Immediate parent company |
Other affiliated entities |
Key personnel |
Other affiliated parties |
Immediate parent company |
Other affiliated entities |
Key personnel |
Other affiliated parties |
|
| Financial Assets Financial asset evaluated at fair value through other comprehensive income |
- | 2,142 | - | - | - | 2,142 | - | - | |
| Loans and advances to customers Other financial assets |
- - |
- - |
398 - |
35,134 - |
- - |
- - |
862 30 |
28,473 - |
|
| Liabilities Deposits from customers Subordinated debt Provisions |
(71) (58) - |
(457) - - |
(7,183) (10,024) - |
(6,252) - (57) |
(1,557) (14,901) - |
(457) - - |
(6,660) (9,896) (1) |
(29,969) - (198) |
|
| Commitments to customers | - | - | 52 | 2,506 | - | - | 104 | 8,644 |
Notes 1 to 39 are part of the consolidated and separate financial statements.
(*) Unaudited / unrevised by the financial auditor.
Page 46 from 57
The Bank's income and expense items with related parties are as follows:
| 31 martie 2022 | 31 decembrie 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Mii LEI | Immediate parent company |
Other affiliated entities |
Key personnel |
Subsidiaries | Other affiliated parties |
Immediate parent company |
Other affiliated entities |
Key personnel |
Subsidiaries | Other affiliated parties |
| Interest and similar income calculated using the effective interest rate |
- | 583 | 2 | 25 | - | - | - | 31 | 604 | 1,378 |
| Interest and similar expense | - | (28) | (1) | (21) | - | (749) | - | (548) | (56) | (47) |
| Fee and commission income | - | 3 | - | 1 | - | - | - | - | 4 | 13 |
| Net gain/(loss) from financial assets measured at fair value through profit or loss |
- | - | - | (156) | - | - | - | - | 1,001 | - |
| Net charge with impairment of financial assets |
- | (153) | - | - | - | - | - | - | (556) | (847) |
| Other operating and administrative expenses |
- | - | (7) | - | - | - | - | (10) | - | - |
| Dividends income | - | 5 | - | - | - | - | 818 | - | 5,000 | - |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor.
Page 47 from 57
The Bank's outstanding balances with related parties were as follows:
| 31 martie 2022 | 31 decembrie 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Mii LEI | Immediate parent company |
Other affiliated entities |
Key personnel |
Subsidiaries | Other affiliated parties |
Immediate parent company |
Other affiliated entities |
Key personnel |
Subsidiaries | Other affiliated parties |
| Financial Assets | ||||||||||
| Financial asset evaluated at fair value through other comprehensive income |
- | 2,142 | - | - | - | - | 2,142 | - | - | - |
| Financial assets measured at fair value through profit or loss |
- | - | - | 14,153 | - | - | - | - | 14,291 | - |
| Loans and advances to customers |
- | - | 398 | 1,128 | 35,134 | - | - | 862 | 1,127 | 28,473 |
| Investment in subsidiaries | - | - | - | 34,296 | - | - | - | - | 34,296 | - |
| Other financial assets | - | - | - | - | - | - | - | 30 | 839 | - |
| Liabilities | ||||||||||
| Deposits from customers Subordinated debt Provisions |
(71) (58) - |
(457) - - |
(7,183) (10,024) - |
(6,078) - - |
(6,252) - (57) |
(1,557) (14,901) - |
(457) - - |
(6,660) (9,896) (1) |
(8,686) - - |
(29,969) - (198) |
| Commitments to customers | - | - | 52 | - | 2,506 | - | - | 104 | - | 8,644 |
Notes 1 to 39 are part of the consolidated and separate financial statements.
(*) Unaudited / unrevised by the financial auditor.
Page 48 from 57
The Group leases a number of branch and office premises. The leases typically run for a period up to 10 years, with an option to renew the lease after that date. For some leases, payments are renegotiated every five years to reflect market rentals. Some leases provide for additional rent payments that are based on changes in local price indices. The Group has in place some contracts for premises that are running for a period less than one year for which the Group decided not to recognize right-of-use assets and lease liabilities.
The Group also leases IT equipment, ATMs and cars with contract terms up to five years for which the Group recognise right-of-use assets and lease liabilities. Previously, these leases were classified as operating leases under IAS 17.
Right-of-use assets relate to leased branch and office premises that are presented within property and equipment (see Note 23).
Information about leases for which the Group is a lessee is presented below:
| Thousand RON | Group 31 March 2022 |
Group 31 December 2021 |
||||||
|---|---|---|---|---|---|---|---|---|
| Land and buildings |
Furniture and equipment |
Means of transport |
Total | Land and buildings |
Furniture and equipment |
Means of transport |
Total | |
| Right of use at 1 January | 37,741 | 14,785 | 5,349 | 57,875 | 32,659 | 8,003 | 5,127 | 45,789 |
| New contracts during the period |
1,089 | - | 18 | 1,107 | 8,510 | 6,782 | 222 | 15,514 |
| Contracts closed during the period |
- | (6,137) | - | (6,137) | (3,428) | - | - | (3,428) |
| Balance at the end of the period |
38,830 | 8,648 | 5,367 | 52,845 | 37,741 | 14,785 | 5,349 | 57,875 |
| Depreciation at 1 January | 15,230 | 7,659 | 3,070 | 25,959 | 8,990 | 5,143 | 1,938 | 16,071 |
| Expenses with depreciation during the period |
1,603 | 488 | 282 | 2,373 | 9,856 | 2,516 | 1,132 | 13,504 |
| Depreciation for contrats closed during the period |
- | - | - | - | (3,616) | - | - | (3,616) |
| Balance at the end of the period |
16,833 | 8,147 | 3,352 | 28,331 | 15,230 | 7,659 | 3,070 | 25,958 |
| Balance at 1 January | 22,511 | 7,126 | 2,279 | 31,916 | 23,669 | 2,860 | 3,189 | 29,718 |
| Balance at the end of the period |
21,997 | 501 | 2,015 | 24,514 | 22,511 | 7,126 | 2,279 | 31,917 |
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 49 from 57
Information about leases for which the Bank is a lessee is presented below:
| Thousand RON | Bank 31 March 2022 |
Bank 31 December 2021 |
||||||
|---|---|---|---|---|---|---|---|---|
| Land and buildings |
Furniture and equipment |
Means of transport |
Total | Land and buildings |
Furniture and equipment |
Means of transport |
Total | |
| Right of use at 1 January New contracts during the period |
35,575 1,005 |
14,564 - |
4,658 - |
54,797 1,005 |
30,257 8,035 |
7,782 6,782 |
4,552 106 |
42,591 14,923 |
| Contracts closed during the period |
- | (6,137) | - | (6,137) | (2,717) | - | - | (2,717) |
| Balance at the end of the period |
36,580 | 8,427 | 4,658 | 49,665 | 35,575 | 14,564 | 4,658 | 54,797 |
| Depreciation at 1 January | 14,138 | 7,526 | 2,747 | 24,411 | 8,033 | 5,055 | 1,744 | 14,832 |
| Expenses with depreciation during the period |
1,557 | 417 | 243 | 2,217 | 9,414 | 2,471 | 1,003 | 12,888 |
| Depreciation for contrats closed during the period |
- | - | - | - | (3,309) | - | - | (3,309) |
| Balance at the end of the period |
15,695 | 7,943 | 2,990 | 26,628 | 14,138 | 7,526 | 2,747 | 24,411 |
| Balance at 1 January | 21,437 | 7,038 | 1,911 | 30,386 | 22,224 | 2,727 | 2,808 | 27,759 |
| Balance at the end of the period |
20,885 | 484 | 1,668 | 23,037 | 21,437 | 7,038 | 1,911 | 30,386 |
The future minimum lease payments under non-cancellable operating leases were payable as follows:
| Thousand RON | 31 March 2022 |
Group 31 December 2021 |
31 March 2022 |
Bank 31 December 2021 |
|---|---|---|---|---|
| Not later than 1 year Later than 1 year and not later than 5 years More than 5 years |
8,550 17,938 - |
8,333 17,410 7,966 |
7,783 17,938 - |
7,549 17,410 7,966 |
| Total | 26,488 | 33,709 | 25,721 | 32,925 |
The Group leases out certain property and equipment under finance leases in its capacity as a lessor. For interest income on the Group's lease receivables, see Note 4.
The following table sets out a maturity analysis of lease receivables, showing the undiscounted lease payments to be received after the reporting date.
Notes 1 to 39 are part of the consolidated and separate financial statements. (*) Unaudited / unrevised by the financial auditor. Page 50 from 57
The Group concluded rental agreements for commercial premises. The future value of the minimum revenues from operating leasing is presented in the table below:
| Group | Bank | ||||
|---|---|---|---|---|---|
| Thousand RON | 31 March 2022 |
31 December 2021 |
31 March 2022 |
31 December 2021 |
|
| Not later than 1 year | 2 | 2 | 161 | 160 | |
| Later than 1 year and not later than 5 years | - | - | 629 | 630 | |
| More than 5 years | - | - | 9 | 49 | |
| Total | 2 | 2 | 799 | 839 |
By the Decision of the Board of Directors of Patria Bank SA no. 94/12.04.2022, it was decided the convening of the EGSM for May 19/20, 2022, at 10:00 hours, at the Bank registered office, considering the fact that Mr. Ilie Carabulea, as shareholder of the Bank, holding a number of 245,490,909 shares, representing 7.49 % of the share capital of the Bank, submitted, on the basis of Article 119 para. (1) of the Companies Law No 31/1990, as amended, by letter received by the Bank on 24.03.2022, a request to convene the EGSM with the following agenda:
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