For the year ended the Bank doubled its profit as compared to the previous year

Following a decision of the Bank’s General Meeting of Shareholders held on 5th May 2000, it was announced that UBB would pay dividend. The General Meeting of Shareholders approved the Board of Directors’ proposal 1999 profit to be allocated for dividends pay-out at 34% per share.

The largest Bulgarian private bank generated in 1999 a profit after tax of BGN 26.6 m., which is almost double that of the previous period.

In 1999 United Bulgarian Bank increased its total assets by 18.4% exceeding BGN 1 billion. Return on Assets reached 2.6% and Return on Equity - 10.3% .

As of December 1999 total deposits amounted to BGN 753,6 m. marking an increase of 18.6% as compared to 1998 year end. As of December 1999 the net loans amount totalled to BGN 182.9. Compared to the same period of 1998 the net loan portfolio after provisions marked an increase of 33%. The 1999 net interest income was BGN 44.5 m. while the net non-interest income was BGN 30.4 m.

UBB is recognised by the International Financial Institutions

In recognition of the Bank’s performance, good management and strong market position, Thomson Bank Watch granted the Bank two double upgrades during 1999, with its short term credit rating, reaching the highest category LC-1. In March 2000, the rating agency also granted the Bank a Long Term Senior Debt Rating, equal to Bulgaria’s Country rating.

In 1999 the Bank continued to develop its co-operation with financial institutions and correspondent banks. The Bank was recognized by the German Agency for Export Insurance HERMES as guarantor for deals with German exporters. The Bank was qualified to participate as an L/C Issuing and Confirming Bank under EBRD’s Trade Facilitation Program servicing the international settlement in Central and Eastern Europe. The Bank was also qualified to participate in two USAID sponsored guarantee programs, “SME Business Development” and “Energy Saving Projects”.

The Bank is focused on satisfying the specific needs of its customers

In 1999 the customers’ base continued to include a large number of corporate clients. The Bank offers them a package of all types of services to satisfy their needs and to support their business progress. The Bank offers to the companies - corporate customers, small and medium-sized enterprises short and long-term financing under competitive terms and high quality service complying with the specific needs of each individual client.

The Bank is participating in specialised programs including a joint project for financing the purchase of agricultural machinery with Government Fund for Agriculture and the leading producer of agricultural machine, John Deere, the Regional Program with Microfund Smolian for granting of loans to start-up small business enterprises, and regional programs for financing of ecological agricultural projects and supporting small and medium-sized enterprises in the regions of Stara Planina.

UBB is a leader on the card products and services market

1999 was a successful year for the Bank’s card products and services. The Bank confirmed its leading position on the Bulgarian market in this sector through the expansion of its ATM and POS terminals network and through the implementation of new types of bank cards. In 1999 the Bank issued 77,936 new debit cards while the total number of cards issued as of May 2000 reached 180 000. The number of newly issued Eurocard / MasterCard and Visa cards almost tripled over the previous year.

Information Technologies - the challenges of the new century

In 1999 the Bank overcame several challenges, including the introduction of the Euro, re-denomination of the Lev, and the Y2000 IT issue. The Bank computerised the wholesale banking system through the implementation of the EQUATION system. The Bank also introduced SWIFT ALLIANCE, a new system for international foreign currency payments. The innovative development of the electronic banking system continued and the Bank introduced a range of integrated facilities for remote PC and telephone banking and a prototype of Internet driven banking.

During 2000 UBB will continue to increase its market share in the large corporate clients, small and medium-sized enterprises and individuals’ sectors. The Bank will introduce and start proactive sale of electronic banking products and will strengthen its positions in issuing debit and credit cards.