INTERVIEW: SENAD REDŽIĆ, DIRECTOR OF NLB BANK D.D. TUZLA
Interviewed by: Hamed IBIŠEVIĆ
SARAJEVO, June 21 (ONASA) – Director of the NLB Bank d.d. Tuzla Senad Redžić in the interview for the ONASA Agency, among other things, talks about the ownership transformation of the Bank, last year’s results of operations, current banking scene and competition between banks, basic business orientation, range of loan products, credit card operations, corporate social responsibility, further improving of the deposit and loan products offer…
ONASA: Despite numerous ownership transformation the NLB Bank d.d. Tuzla managed to stay on BiH banking market and continue almost century-old continuous tradition of banking in Tuzla, that is the FBiH. What were the circumstances and the factors contributing to this development of events and achievements that you are clearly proud of?
REDŽIĆ: The key event in the recent history of the Bank is certainly a change of majority ownership in 2005, when the Bank received a strategic partner and became a member of the largest Slovenian international financial group – NLB Group. A year after that, the NLB Tuzla Bank d.d., Tuzla merged with the CBS Bank d.d., Sarajevo and with that the business network had expanded considerably with the strengthening of the capital and increase in a number of clients. These were all factors that influenced, with the use of new and more modern technology of the banking operations, improvement of the quality and range of services of the Bank.
In February 2012 the Assembly of shareholders of the NLB Bank issued the Decision to change the name into the NLB Bank d.d. Tuzla as a logical extension of the strategic development plan to strengthen and clearly determine the presence of the bank in the whole territory of the FBiH.
ONASA: Can you tell us something more about the results of the Bank in 2014?
REDŽIĆ: NLB Bank d.d. Tuzla according to unaudited data continuously achieves good operating results, and in 2014 achieved positive financial result before provisions in the amount of 15.4 million BAM, which is for 2.3 million BAM or 18 percent more than in 2013.
The increase in the financial result before provisions was influenced by higher net interest income of 1.2 million BAM or 4 percent and lower operating costs for 1 million BAM or 4 percent. Despite the increase in the allowance for impairment and provisions for 1.2 million BAM or 15 percent, net profit increased by 1 million BAM or 23 percent of the realized in 2013 and amounted to 5.2 million BAM. Compared to December 31, 2013, we had an increase in loans for 3 percent, while loans in the sector increased by 2 percent, thus the participation of the Bank slightly increased from 5.7 percent to 5.8 percent. We will continue to actively recognize and support good business projects at the market with simultaneous optimization of our business.
With its business activities, which are always focused on customers, their greater satisfaction, services and products of the Bank, the NLB Bank d.d. Tuzla in 2014 managed to increase market share, according to the latest published data on the banking sector of the FBiH, on the day September 30, 2014. Compared to December 31, 2013, the Bank increased its assets by 15 percent while in the banking sector asset growth is 3 percent, thus increasing the participation of the Bank from 5.2 percent to 5.8 percent. The Bank has maintained 7th place regarding the amount of asset. Total deposits experienced growth of 21 percent compared to the end of 2013, which is also significantly higher than the growth of a sector, which contributed to increase of te market share of the Bank in deposits from 5.5 percent to 6.4 percent.
ONASA: In the presence of such large number of foreign banks how difficult is it to survive on BiH banking scene and what conditions should be met in order to stay among the leading companies in this field?
REDŽIC: In our market are present almost all respectable banking groups which bring with them new technologies of the work, as well as product development in line with international standards. Intense competition from banks has resulted in low interest margins for banks, but at the same time enabled to citizens and businesses favorable borrowing. The overall economic, political and legislative environment unfortunately did not help businessmen to opt for investments or new projects, and together we have do everything to accelerate economic growth and create conditions for a faster recovery of the market as a whole.
The only guarantee of the success of the Bank is a client’s satisfaction, which in the future remains our primary goal.
ONASA: What are, in general, the basic orientations of the NLB Bank, how many clients gave you their trust and how many employees do you have?
REDŽIĆ: The fundamental commitment of the Bank in its work is meeting the needs of clients in financial services, thus we are continuously improving the quality and complementing the range of services. The fact that more than 400.000 corporate clients and individuals gave their trust to the Bank is also the confirmation of the quality. The Bank is organized into nine offfices, 20 branches and 12 agencies with a total of 450 employees.
ONASA: Can we numerically can talk about your portfolio, ie. following the development of small and medium-sized enterprises with profitable projects, and on the other hand the household lending in the FBiH and Brčko District?
REDŽIĆ: The Bank continuously carries out activities aimed at following financial needs and abilities of their clients, as well as the strengthening of support in the implementation of various business arrangements, as with large corporate clients, as well as with small and medium enterprises. In addition to lending from own resources, investment projects of its clients the Bank follows and with the funds from the credit line of the EBRD and the World Bank. Also, in the segment of doing business with the citizens, the Bank offers a wide range of loan products, which are continuously adjustsed to the needs of its clients by creating activities on cash and mortgage loans, the existing offer of loan products, we are improving and appropriate actions followed by intensified marketing activities.
ONASA: Can you present the information which cards you have in the area of the card business, whether it is for natural persons or legal entities, and which are the most popular cards among the citizens?
REDŽIĆ: In the area of card business, the NLB Banka d.d. Tuzla is issuing VISA Electron, VISA Classic and VISA Gold, and Maestro, MasterCard and Maestro CIRRUS cards for natural persons, and Visa and Maestro Business cards for legal entities. Soon we are planing to issue MasterCard debit card (contactless card). Each of the cards is equally important in our portfolio because it meets the specific needs of clients and brings certain benefits when being used.
ONASA: Except helping the development of BiH economy do you help BiH society through the implementation of projects of corporate social responsibility?
REDŽIĆ: One of the lasting commitment of the Bank is the corporate social responsibility, and projects are adapted to the needs of society and those who need the help the most. Last year our focus was on the population and business entities that were the most affected by floods in May. In the first phase of the assistance, during the month of July 2014, the Bank to the most affected in the areas of Tuzla, Posavina and Zenica-Doboj Canton donated cash funds totaling 100.000 BAM, and the NLB d.d. Ljubljana donated funds for the reimbursement of the total material damage caused by natural disasters, which had employees of the Bank.
In addition to these activities, in the context of measures to support clients, natural persons, who in floods suffered major damage, the Bank has created a special line of loans on more favorable terms compared to regular loan offer of the Bank. Also, in order to mitigate the consequences of natural disasters suffered by clients, both natural and legal entities, the Bank restructured existing loan obligations in accordance with the needs of clients and the Decision of the FBiH Banking Agency.
In addition to the activities undertaken by the Bank, the employees of the Bank got included in the second phase, and jointly donated one day’s wage and collected about 40.000 BAM. In coordination with the local committees of the Civil Protection, the employees handed financial assistance to 116 most vulnerable families. Assistance was also provided to the elementary school “Lukavac Mjesto” and the football club “Radnik” from Lipnice.
The Bank is proud of the fact that the employees showed their humanity and solidarity in action as corporate social responsibility is the postulate of the NLB Bank and the entire NLB Group.
Our projects of corporate social responsibility certainly not only help the development of the economy but are also the financial support and to the development of science, culture, sports and all important social activities in the area of the Bank operations, and this is supported by the numerous sponsorship contracts, among which are the recent sponsorship support to the FK Sarajevo and FK Željeznicar.
ONASA: In addition to having the electronic money transfer, phone service, how many ATMs does the NLB Bank have, and are you planning to install new ones?
REDŽIĆ: During 2014, the Bank constantly devised a diverse range of financial products for clients, which proved to be the right thing to do, especially two waves with a number of special offers of loans and other products that were rated as very successful. With the campaign “The package is easier!”, the NLB Bank enabled to citizens a larger amounts of loans, with lower interest rates and longer repayment periods, and particularly favorable in the offer were the NLB Cash and Replacement loans up to 60.000 BAM with the repayment period up to 12 years, and the NLB Housing loans up to 200.000 BAM with the repayment period up to 20 years.
In the last quarter of last year, the Bank introduced the Contact Center with the aim of improving and modernizing communication with clients. Contact Center is a multimedia call center that enables the effective management, not only of the phone calls but also two-way communication with clients via other channels such as e-mail, fax and SMS. There is a toll-free number: 080022427, at which clients can promptly receive all the required information. In any case, our primary goal is to continuously improve the quality of services taking into consideration the needs and wishes of our clients and accordingly offer them the best possible support when using the products and services of the Bank. At present, the ATM network of the Bank includes 68 ATMs.
ONASA: At this moment are there any indications of a new project regarding the business that you do?
REDŽIĆ: The Bank will try and in the future to make continued and stable growth, focusing on the further improvement of offer of the deposit and loan products, the introduction of new card products – MasterCard debit card (contactless cards), improvement of the service of electronic banking services, as well as the strengthening of the distributive ATM network and POS terminals, which will enable clients even better cooperation with the Bank. We have just finished a media campaign for the NLB Savings, where in a very creative way we are trying to encourage clients to find a way to achieve their wishes by raising awareness about the importance of saving, and the campaign for the loans is ongoing as well. (end)