Bosnia and Herzegovina

The merger of our two subsidiaries HVB-Banka Bosna i Hercegovina d.d. Sarajevo and Central profit banka d.d. Sarajevo, a bank which we acquired in October 2003, to form HVB Central Profit Banka was completed on 30 September 2004. Both subsidiaries have been consolidated as from 1 January 2004. Serving 127,000 customers through 33 branches, HVB Central Profit Banka has a market share of almost 8% and is now the country’s fourth largest bank.

The bank achieved a positive result for 2004 primarily due to higher net interest income, which reflects growth in loans and deposits.

Business structure and development
Corporate customer business progressed very satisfactorily in 2004. In addition to multinational corporates, the bank served a growing number of local export companies. Corporate customer business focuses on export finance and investment financing, on documentary business and on payment services.

In the retail customer segment a new loan product was introduced in March. It was the first joint product, with a single marketing campaign launched before the merger of the two subsidiaries. With this initiative the bank succeeded in attracting a new, wider customer base. The successful consumer credit campaign attracted a large number of new customers and increased lending significantly.