Page 61 - BKT Annual Report 2024 EN

Consolidated statement of cash flows for the year ended 31 December 2024 Notes to the Consolidated Financial Statements for the year ended 31 December 2024
(Amounts in USD) (amounts in USD, unless otherwise stated)

Year ended 31 Year ended 31 1. GENERAL
Notes
December 2024 December 2023 Banka Kombëtare Tregtare Sh.a. is a commercial bank offering a wide range of universal services. The consolidated financial statements
Cash flows from operating activities: comprise the bank in Albania, Kosovo BKT Pay and its associate Albania Leasing (together referred to as the “Bank” “BKT” or the
Profit before taxes 142,189,688 105,650,295
Adjustments to reconcile change in net assets to net cash provided by “Group”).
operating activities:
Interest expense 26 68,141,397 50,122,934 The Bank provides banking services to state and privately owned enterprises and to individuals. The main sources of funding for the
Interest income 25 (290,658,382) (243,107,603)
Depreciation and amortization 13,14,15 14,531,971 11,318,155 Bank are deposits, which are accepted in various forms including current accounts, demand and term deposits, in both Lek and
Gain on sale of property and equipment (25,476) (23,884) foreign currency. BKT offers a variety of corporate and consumer loans, Europay / MasterCard / Visa (“EMV”) – compliant debit and
Gain on sale of investment securities (4,903,787) (34,090) credit cards, ATMs, sophisticated internet banking, mobile banking, on-line banking facilities, qualified international banking services
Gain on sale of non-current assets (300,167) (893,540) and various treasury products. It also invests in securities and takes part actively in the local and international interbank markets.
Gain on recovery of written-off loans to customers (1,523,035) (1,592,015) BKT was established in its present legal form on 30 December 1992, although its first branch was opened on 30 November 1925.
Write-off of loans to customers 1,272,594 33,504
Write off of fixed assets and repossessed assets 68 66,160 BKT is subject to Law no. 8269 “On the Bank of Albania” dated December 1997 and Law no. 9662 “On Banks in the Republic of
Provision on other debtors 2,801,765 3,081,750 Albania”, dated 18 December 2006.
Reversal of other debtors (374,174) (560,095)
Movement in the fair value reserve and impairment of FVOCI 15,056,476 22,022,625 Upon the Shareholder’s Decision dated 27 March 2024, the Bank created legal reserves of Lek 393,079 thousand (equivalent of USD
Dividend income from securities - (468,267)
Impairment of loans to customers 11 3,398,517 (5,369,981) 4,072,511); decided to increase the authorised and paid-in capital with Lek 4,826,000 thousand (equivalent to USD 50,000,000.05, by
Impairment of financial instruments, other than loans 32 4,070,884 18,405,243 the Bank of Albania exchange rate published as at 27 March 2024 – 96.52 Lek per USD) using part of accumulated retained earnings
Cash flows from operating profits before changes in operating (46,321,661) (41,348,809) from year 2022; and to distribute Lek 4,826,000 thousand as dividends (equivalent of USD 50,000,000, by the Bank of Albania exchange
assets and liabilities rate published as at 27 March 2024 – 96.52 Lek per USD), using the remaining part of accumulated retained earnings from year 2022
(Increase)/decrease in operating assets:
Restricted balances with central banks (27,126,096) (67,413,199) and part of the statutory net profit for the year ended December 31, 2023. The remaining part of the net profit of the year 2023 was
Placements and balances with banks (2,918,945) 61,985,087 kept as retained earnings. The dividend was paid in April 2024.
Loans to banks (4,958,680) 29,520,518
Loans to customers (227,783,058) (100,528,375) As at 31 December 2024, the registered share capital was USD 350,000,000.35 (31 December 2023: USD 300,000,000.3) divided
Other assets 2,351,954 (15,153,950)
(260,434,825) (91,589,919) into 28,340,081 shares with a nominal value of USD 12.35, while the shareholding structure was as follows:
Increase/(decrease) in operating liabilities:
Customer deposits 284,090,751 222,955,222
Due to third parties (4,354,574) 3,029,099
Accruals and other liabilities 1,542,214 (9,494,283) 31 December 2024 31 December 2023
281,278,391 216,490,038
Dividend payment (50,000,000) (100,000,000) No. of shares Total in USD % No. of shares Total in USD %
Interest paid (61,270,123) (42,620,305)
Interest received 284,936,394 241,722,066 Calik Holding A.S. 28,340,081 350,000,000.35 100 24,291,498 300,000,000.3 100
Income taxes paid (18,974,475) (17,235,472)
Net cash flows from operating activities 129,213,701 165,417,599
Cash flows from investing activities
Purchases of investment securities (549,236,808) (511,199,073)
Purchases of treasury bills (55,608,920) (153,235,120) The headquarters of BKT are located in Tirana. The network of the Bank in Albania includes 60 branches and 2 customs agencies.
Investment in associates 195,575 288,188 Twenty-five branches are located in Tirana, and the other branches are located in Durres, Elbasan, Vlora, Shkodra, Fier, Pogradec,
Purchases of property and equipment (16,487,738) (10,464,875) Korca, Bilisht, Gjirokastra, Delvina, Saranda, Orikum, Berat, Kucova, Lushnja, Librazhd, Peqin, Rrogozhina, Shkozet, Kavaja, Vora,
Proceeds from sale of investment securities 352,323,904 304,208,453
Proceeds from sale of treasury bills 10,897,938 267,693,004 Kamza, Fushe Kruja, Lac, Lezha, Rreshen, Kukes, Peshkopi, Bushat, Koplik, Gramsh and Skrapar, followed by agencies in Rinas
Net cash flows used in investing activities (257,916,049) (102,709,423) Airport and Çorovoda.

Cash flows from financing activities The network in Kosovo includes 24 units. Seven units are located in Prishtina, and the other units are located in Prizren, Peja, Gjilan,
Proceeds from short term borrowings 18 79,241,322 (176,405,093) Ferizaj, Mitrovica, Gjakova, Vushtrri, Fushe Kosova, Podujeva, Drenas, Rahovec, Viti and Lipjan, Dheu i Bardhe, Prishtina Airport,
Debt securities issued 29,749,349 31,715,301
Subordinated debt (2,893,939) (4,834,526) Therandës and Skenderaj.
Net cash from financing activities 106,096,732 (149,524,318)
The Bank had 1,584 (31 December 2023: 1,516) employees as at 31 December 2024, out of which 492 (31 December 2023: 466)
Net change in cash and cash equivalents (22,605,616) (86,816,142) employees work for BKT Kosovo, and 14 employees belong to BKT Pay.
Effects of exchange rate changes on the balance of cash held in foreign (9,090,859) 36,124,437
currencies / (Translation difference)
Cash and cash equivalents at the beginning of the year 7 522,344,285 573,035,990 The average number of employees of the Bank for the period ended 31 December 2024 is 1,555 (31 December 2023: 1,448) out of
Cash and cash equivalents at the end of the period 7 490,647,810 522,344,285 which 479 (31 December 2023: 447) employees belong to BKT Kosovo, and 12 employees belong to BKT Pay.

The consolidated statement of cash flows is to be read in conjunction with the notes to and forming part of the consolidated financial
statements set out on pages 6 to 75.
ANNUAL REPORT 2024 06