FAF SHA Albania








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ACTIVITIES

Targets & Activities 2009-11

FAF-DC aims to be a leading financial company in terms of profitability and growth. For 2009 and the years to come it will experience an average return on equity, higher than the current one and exceeding the average growth of banking system in Albania.

Nevertheless, FAF-DC will operate in a more competitive environment. In the projections of 2009-11, the competitive risk of FAF-DC will face the competition of 18 licensed commercial banks in Albania, with a total network of 171 regional offices, branches, and agencies.

In spite of this, still none of the banks has a rural lending presence.

The recent sound performance is likely to have an influence on approval of the following financing to FAF:

Institution	Loan size	Repayment period	Grace period	Interest rate
IFAD	USD 4 000 000	40 years	10 years	1% fixed rate
OFID	USD 750 000	20 years	5 years	3.25 % fixed rate
CEB	EUR 5 000 000	10 years	5 years	Euribor + 0.32

The projected balance sheet and income statement are based on the information above:

Financial Position Projections [USD]:

Balance Sheet and Capital Structure:

Balance Sheet Items	2011	2010	2009	2008	2007
Cash	1 025 774	575 376	338 693	1 379 316		317 964
Loans	24 854 395	23 164 040	21 476 635	17 856 045		16 685 189
Fixed Assets	460 000	460 000	460 000	461 928		465 572
Total Assets	26 340 169 150.78%	24 199 416 138.53%	22 275 328 127.51%	19 697 289 112.76%		17 468 725 100%
Current Liabilities	170 000	150 000	145 000	124 400		1 950
Non Current Liabilities	10 422 748	9 319 539	8 216 330	6 268 628		5 038 706
Total Liabilities	10 592 748 210.14%	9 469 539 187.63%	8 361 330 165.87%	6 393 028 126.83%		5 040 656 100%

Equity	15 747 421 126.09%	14 729 877 118.52%	13 913 998 111.96%	13 304 261 107.05%		12 428 069 100

Income Statement Projections [USD]:

Income Statement	2011	2010	2009	2008	2007
Income	4 486 430	4 183 555	3 842 892	3 568 997	2 998 001
Expenses	3 468 886	3 367 676	3 233 155	2 692 805	2 352 155
Net Operating Income	1 017 544	815 879	609 737	876 192	645 846

The projections of Balance Sheet and Income Statement items are adjusted according to conservatively moderate growth forecasting scenarios, and yet it provides interested investors with a financially attractive and viable option. The growth of total assets in 2011 are 1.51 times higher than 2007, the total liabilities are 2.10 times higher and equity capital is increased for 1.26 times. The average growth of capital is 116%.

All forecasts are based mainly on second and third time borrowers, who represent major elements of non-farm production, and the majority share of outstanding loans portfolio will be 60-70% for ‘non-agriculture and livestock’ loans.

The process of diverting loans from farm projects into industrial processing lines projects appears to be an appropriate future option.

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