With a view to boosting shareholder returns, the bank has increased the percentage of the nominal value of its shares paid out as dividends to 9.6% from 7.5%. Increased shareholder return last year came from capital gains in the rising market price of the bank’s shares. Share price growth has been driven mainly by increased demand from domestic and foreign investors responding to the bank’s excellent financial results. Net profits spiralled 253% last year, with a steady downward trend on the NPL ratio to 14.8%. Investors were also encouraged by plans to set up a pension fund management company, as well as increased liquidity following a 5-for-1 share split.
Last year, the bank achieved the main priorities of its business strategy, aimed at strengthening its lead position in the Macedonian market, increasing market share and maximising shareholder value. The bank also acquired KB Broker, thereby joining the Macedonian Stock Exchange. It also improved the organisation of its domestic payments operation and developed internet solutions for domestic financial transactions. The bank installed a new perimeter security infrastructure and introduced new retail products, such as a mortgage consumption loan, tourist loan, open savings and children’s savings. New info-booths and info-centres were rolled out during the year.
