KOMERCIJALNA BANKA AD BEOGRAD

PROSPECTUS ON THE XX ISSUE OF ORDINARY SHARES

Belgrade, October 24, 2007.

PROSPECTUS CONTENTS:

A) INTRODUCTORY PART OF THE PROSPECTUS............................................................................3

1. SHARES ISSUER ....... .................................................................................................................3
2. ISSUING SHARES.........................................................................................................................3
3. SCOPE OF SHARE ISSUE.............................................................................................................3
4. NUMBER OF SHARES AND THEIR NOMINAL VALUE....................................................................3
5. SHARES SALE PRICE....................................................................................................................3
6. RIGHTS AND LIABILITIES ARISING FROM SHARES.................................................................4
7. TIME, PLACE AND TERM FOR SHARE SUBSCRIPTION.................................................................6
8. PLACE AND CONDITIONS FOR PAYING IN THE SHARES.............................................................8
9. SECURITIES MARKET..................................................................................................................9
10.SUMMARY BASIC INFORMATION ON THE SHARES ISSUER.......................................................9
11.BROKER-DEALER COMPANY AND/OR AUTHORIZED BANK PARTICIPATING
IN THE PUBLIC OFFER ORGANIZATION ...................................................................................10

B) MAIN PROSPECTUS...................................................................................................................11
1. DATA ON THE SHARE ISSUER...................................................................................................11
1.1. MAIN DATA.........................................................................................................................12
1.2. CAPITAL OF THE ISSUER....................................................................................................14
1.3. BOOK-KEEPING VALUE OF SHARES AND ISSUER’S SECURITIES
TRADING............................................................................................................................11
1.4. SHARE HOLDRES...............................................................................................................16

2. BUSINESS ACTIVITIES, PROPERTY AND OTHER LIABILITIES OF THE

ISSUER................................................................................................................................16
2.1. SCOPE OF ACTIVITIES OF THE ISSUER..............................................................................16
2.2. PROPERTY AND LIABILITIES OF THE ISSUER..................................................................24
2.3. FINACIAL DATA.................................................................................................................39
2.4. OTHER MATERIAL DATA..………………………………………………………………………………..66

3. BUSINESS DEVELOPMENT POLICY OF THE ISSUER……………………………………………………..66

3.1. PLANNING OF THE ISSUER’S DEVELOPMENT POLICY....………………………………………….67

4. DATA ON THE MANAGEMENT BODY AND SUPERVISORY BOARD MEMBERS….………………….68

4.1. MEMBERS OF THE MANAGEMENT BODY AND THE SUPERVISORY BOARD….……………….68
4.2. FEES AND OTHER COMMISSIONS OF THE ISSUER..……………………………………………..68
4.3. SHARE OF THE MANAGEMENT BODY AND EMPLOYEES IN THE INITIAL CAPITAL OF THE
ISSUER..........................................................................................................................................69

5. COMPETENT PERSONS..........................…………………………………………………………………….69
5.1. NAME AND SURNAME OF THE PERSON IN CHARGE OF THE WORDING OF THIS
PROSPECTUS......................................................................................…………………………69

6. COMMISSION DECISIONS............……………………………………………………………………………70
6.1. NUMBER AND DATE OF THE COMMISSION’S DECISION ON APPROVAL OF THE
PROSPECTUS ON ISSUANCE OF SHARES..............................................................................…...70

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 PROSPECTUS

A) INTRODUCTORY PART OF THE PROSPECTUS

‘’ Securities Commission is neither liable for accuracy and completeness of the data stated in the
prospectus on issuance of securities, nor for the securities issuer’s abilities to meet its obligations
under the issuing securities“.

1. SHARES ISSUER
1.1. Name, Head Office, Registry and Tax KOMERCIJALNA BANKA AD BEOGRAD, Svetog Save 14,
11000 Beograd, RN-07737068, TIN - SR 100001931
Identification No.;
1.2. Basic activity; 065121-banking organizations
1.3. Initial capital amount as per the latest Share and other capital 12.662.890 (Din. 000)
financial statement; Reserves 1.962.557
Unallocated profit 1.369.106
TOTAL CAPITAL 15.994.553

2. ISSUING SHARES
2.1. Type, class, issue mark, CFI code, and ISIN security number;
Type of shares Ordinary (common) shares
Class All shares are of the same class
Issue mark XX issue
CFI code ESVUFR
ISIN number RSKOBBE33594

3. SCOPE OF SHARE ISSUE

3.1. Total nominal value of all securities to be issued in dinars;
Total nominal value of all shares of the XX issue amounts to DIN 720.000.000,00 .

4. NUMBER OF SHARES AND THEIR NOMINAL VALUE

4.1. Total number of securities to be
72.000 individual securities
issued;
4.2. Nominal value per security Din. 10.000

5. SHARES SALE PRICE

5.1. Price at which the securities are As concerns the Bank’s shareholders with the preferential
offered ; right of subscription, the XX issue shares are sold at the
price of Din. 112.000,00. As for shareholders who had

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 already used their preferential right of subscription, as
well as all other interested parties, shares are sold at the
issuance price of Din. 124.000,00. Shares are paid for in
dinars.
5.2. Manner of securities payment Shares of the XX issue are paid for in dinars, into the
payment account opened with Čačanska Banka ad Čačak

6. RIGHTS AND LIABILITIES ARISING FROM SHARES

6.1. Rights and obligations Rights of the purchasers of the XX issue of shares are defined by
under shares the Article 12. of the Decision on Issuance of the XX Issue of
Ordinary Shares of Komercijalna Banka ad Beograd for the purpose
of capital increase, and they comprise:

1. right of access to legal enactments, other documents and

information related to the company;
2. right to participate in the work of the General Meeting of the
Bank, in the manner and under conditions stipulated by the
Statute;
3. voting right at the General Meeting of the Bank, so that one
share is always entitled to one vote, in the manner and under
conditions stipulated by the Statute;
4. right to payment of dividends, upon effecting payment of
dividends for all issued preference shares in the full amount;
5. right to participate in allocation of bankruptcy surplus after the
Bank’s bankruptcy is completed, and after effecting payments
of preference shares to creditors and shareholders;
6. preferential right of acquisition of new issue shares and
convertible bonds;
7. right of disposal with shares, pursuant to the law;
8. other rights prescribed by the law and the decision on share
issuance.

Shareholders obligations are stipulated in the Articles of

Association of Komercijalna Banka ad Beograd, and they read as
follows:
1. they are to comply with the provisions of this agreement, the
Statute, and other enactments of the Bank,
2. they should duly notify the Bank on each incurred status change,
3. they are to meet other obligations in relation to the Bank, as
stipulated by the law, other regulations, this agreement, the
Statute, and general enactments of the Bank.
6.2. Preferential right of Present shareholders have the preferential right of subscription to
subscription the XX issue of shares, proportionally to the nominal value of
owned shares as at October 3, 2007.
6.2.1. Parties holding the
preferential right of
subscription and paying Present shareholders (owners of ordinary shares) have the
in of shares, as well as preferential right of subscription to the XX issue of shares
the grounds on which proportionally to the nominal value of owned shares as at October
such right has been 3, 2007.
assigned (owners of
ordinary shares,
holders of warranties,

4
 convertible bonds,
preference convertible
shares)
6.2.2. Total number of
securities under which Total number of shares, under which the preferential right of
they were assigned the subscription has been assigned, amounts to 848,312 ordinary
preferential right of (common) shares.
subscription
6.2.3. Number of the new
issue shares under Total number of the XX issue of shares, under which the
which the preferential preferential right of subscription has been realized, amounts to
right of subscription 72.000 shares
has been realized
6.3. Tax obligations of the Property tax, and, in case the shares are sold at the Stock
share holders Exchange, the tax on assignment of absolute rights, as well as the
capital income tax.
6.3.1.Income tax , Taxation of securities is regulated by the :
transaction tax, profit Law on Property Taxes (’’Official Gazette of the RS“ No. 26/01,
tax, tax relief, tax 80/02, 135/04)
incentives Law on the Citizens’ Income Tax (’’Offcial Gazette of the RS“ No.
24/01, 80/02, 135/04)
Law on Corporate Income Tax (’’Official Gazette of the RS“
No.25/01, 80/02, 43/03, 84/04)

Tax on absolute rights assignement- after the sale of shares. Tax

payer, in case of the assignment of absolute rights, is the seller of
shares. Prescribed tax rate amounts to 0,3%. Tax on absolute
rights assignment is not subject to payment (Art. 31. of the Law) in
the following cases:
- when placing absolute rights in the capital of the shareholding
company
-when absolute rights are assigned for the purpose of settlement
public revenue liabilities.
Tax on inheritance and gift. Article 14. of the Law prescribes the
obligation of paying taxes on inheritance and gift, on inherited
securities, i.e., securities obtained as a gift. Tax rates are
progressive and dependable on the tax base level. Tax on
inhertiance and gift is not subject to payment (Article 21. of the
Law) in the following cases:
-in case of the first hereditory successor, merital partner, and a
parent of the testator, i.e., the person receiving the gift who
belongs to the first hereditory successors and a marital partner of
the person making the gift.
Capital income tax. Capital income tax payer is a natural person
realizing the relevant income. Capital income tax accounts for
20%. Article 61. of the Law also prescribes that the dividend is
subject to taxation, as wel as the capital income. Tax payer who
had acquired securities prior to January 1994. is subject to capital
income tax relief. Tax base is the difference between the purchase
and sales value of securities adjusted in compliance with the
provisions of the law.
6.4. Manner of settlement of Commercial court in Belgrade.
possible disputes which

5
 may arise between
issuers and holders of
securities, and the
name of the court
competent for
settlement of disputes

7. TIME, PLACE AND TERM FOR SHARES SUBSCRIPTION

7.1. Corporate name, Subscription of shares is made in KOMERCIJALNA BANKA AD BEOGRAD
head office, each working day from 9.00 A.M. until 3.00 P.M., and on Saturdays
address, and from 9.00 A.M. until 12.00. (in Kikinda sub-branch, the subscription will
working hours of be made from Monday to Friday in the period from 09.00 A.M. until
BDD/ bank and the 3.00 P.M.) in the following organizational parts:
term within which
the subscription of No. Name of the Name of the Address
shares can be branch organizational part
made (separately Beograd-BG sub- 14, Svetog Save 14,
state the term for branch Beograd
subscription on the Beograd-DE sub- Kralja Petra 19-21,
grounds of branch Beograd
preferential right 1. Beograd Beograd-61 sub- Svetogorska 42 - 44,
to subscription ) branch Beograd
Novi Beograd-23 sub- YBC, Lenjinov bul. 10,
branch Beograd
Beograd-28 sub- Trg Nikole Pašića 2,
branch Beograd
Zemun-N2 sub-branch Rajačićeva 2, Zemun
Zaječar-56 sub- Nikole Pašića 25,
branch Zaječar
Negotin-91 11 sub- Trg Đorđa Stanojevića
branch 11, Negotin
2. Zaječar
Knjaževac-N5 sub- B. Radičevića 2,
branch Knjaževac
Bor-72 sub-branch Zeleni Bulevar 4, Bor
3. Sombor Sombor-D2 sub- Staparski put 14,
branch Sombor
Subotica III-N9 sub- Korzo 10, Subotica
4. Subotica branch
Kanjiža-D7 sub- Glavna ulica 16,
branch Kanjiža
Senta-T6 sub-branch Glavni trg 8, Senta
Bačka Topola-T5 M. Tita 57, Bačka
sub-branch Topola
5. Smederevo Smederevo 1-92 Karađorđeva 30,
sub-branch Smederevo
6. Jagodina Jagodina II-T1 sub- Knjeginje Milice 24,
branch Jagodina
7. Kraljevo Kraljevo II-79 sub- Trg Srpskih Ratnika

6
 branch bb, Kraljevo
8. Loznica Loznica II-P9 sub- Gimnazijska 1, Loznica
branch
9. Vršac Vršac-68 sub-branch Trg Save Kovačevića 2,
Vršac
10. Užice Užice III-FM sub- Petra Ćelovića 4, Užice
branch
11. Novi Pazar Novi Pazar II-E4 Njegoševa 1, Novi
sub-branch Pazar
12. Kikinda Kikinda II-98 sub- G. Drapšina 30,
branch Kikinda
Niš V-GH sub-branch Episkopska 32, Niš
Leskovac II-C7 sub- Bul. Oslobođenja 92,
13. Niš branch Leskovac
Novi Sad III-FC sub- Bul. Mihajla Pupina 6,
branch Novi Sad
14. Novi Sad Vrbas II-H6 sub- M. Tita 49, Vrbas
branch
Bačka Palanka-51 Trg Bratstva i
sub-branch jedinstva 30-32, B.
Palanka
15. Čačak Čačak III-FK sub- Župana Stracimira 23,
branch Čačak
16. Šabac Šabac-73 sub- Gospodar Jevremova
branch 2, Šabac
Kragujevac II-53 Kralja Petra 25,
sub-branch Kragujevac
17. Kragujevac Aranđelovac-D5 sub- Kneza Miloša 212,
branch Aranđelovac
18. Zrenjanin Zrenjanin II-G2 sub- Trg Slobode 5,
branch Zrenjanin
19. Požarevac Požarevac III-DD Moše Pijade 8,
sub-branch Požarevac
S. Mitrovica-48 sub- Kralja Petra 5-7, S.
20. Sremska branch Mitrovica
Mitrovica Ruma-08 sub- Poslovni centar bb,
branch Ruma
Šid-EA sub-branch Karađorđeva 7, Šid
21. Vranje Vranje II-58 sub- Stefana Prvovenčanog
branch 58, Vranje
22. Valjevo Valjevo-C2 sub- Gradski trg bb, Valjevo
branch
23. Proboj Priboj-R7 sub- Meše Selimovića 1,
branch Priboj
24. Kruševac Kruševac-A0 sub- Trg fontana 1,
branch Kruševac

The overall term for subscription of XX issue of shares will last for 90
days from the date stated in the public invitation for commencement of

7
 subscription and payment of shares. Concerning the shareholders
having the preferential right of subscription, the deadline for
subscription is 70 days from the date stated in the public invitation.
Concerning the shareholders who used up the preferential right to
subscription, as well as all other interested parties, the subscription
deadline lasts from the 71.-st until 90.-th day from the date stated in
the public invitation for commencement of subscription.

Shareholders with the pre-emption right may exercise such right

proportonally to their share in the existing capital of the issuer.

8. PLACE AND CONDITIONS FOR PAYING IN THE SHARES

8.1. Corporate name,head Čačanska Banka ad, 1, Pivarska Str., Čačak.
office, address, term within Overall term for paying in the XX issue of shares lasts 90 days from the
which the payment of shares date stated in the public invitation for the commencement of
can be made, as well as the subscription and payingin. For the shareholders with the pre-emption
working hours of the right, the term is 70 days from the date stated in the public invitation.
payingin bank; For the shareholders who used up the pre-emption right and for all
other interested parties the paying in term lasts from the 71.-st until
90.-th day of the dater stated in the public invitation.
Payments are received each working day during the working hours of
the Bank from 8.00 A.M. until 4.00 P.M.
Čačanska Banka ad Čačak places for payment
Čačak Čačak Head Office Pivarska 1
Aranđelovac Aranđelovac branch Jadranska bb
Beograd Beograd registered Bul. Arsenija Čarnojevića
branch 52a
Beograd Beograd branch Cara Dušana 78-80
Gornji G. Milanovac branch Kneza Aleksandra 2
Milanovac
Jagodina Jagodina branch Nikčevićeva 24
Kragujevac Kragujevac branch Kneza Miloša 3
Kraljevo Kraljevo branch Trg Jovana Sarića 8
Užice Užice branch Nikole Pašića 48
Kruševac Kruševac branch Trg Kosturnice bb
Šabac Šabac branch Karađorđeva 77
Valjevo Valjevo branch Kneza Miloša 59a
Paraćin Paraćin sub-branch Vojvode Mišića 13
Guča Guča sub-branch Republike 65
Požega Požega sub-branch Kralja Petra 31
Čačak Sub-branch 1 Skadarska 19
Čačak Sub-branch 2 Pivarska 1
Čačak Sub-branch 3 Nemanjina 32
Čačak Sub-branch 4 Mrčajevci

8
 Payment account for purchase of XX issue of shares opened with
Čačanska Banka ad Čačak, is
908-15501-35 reference number
4030 0000/4 - RN/TIN of the PERSON WHO EFFECTS PAYMENT

8.2. Manner in which the

Allocation of larger number of subscribed and paid in shares, in
allocation of more
comparison to the offered number of shares, upon exercising the pre-
subscribed and paid in
emption rights, for the parties making the subscription and paying in of
securities is made to the
shares shall be made by proportional decrease in the number of
parties subscribing and
subscribed and paid in shares.
paying in the securities;
8.3. Consequences of non A person who does not pay in the subscribed shares or does not effect
payment or overdraft of payment of subscribed shares after the expiry of the payment term for
payment term; the XX issue of shares does not acquire the status of the Bank’s
shareholder.
8.4. Number of securities
that must be subscribed and
paid in in order the sale is 43.200 (60% of offered shares)
successfully completed
(succes treshold)
8.5. Manner and term for
returning paid in amounts in
In case of the share issue failure, the Bank is obliged, within the term
case of unsuccessful sale
of seven days from the date of expiry of the subscription and paying in
with the interest rate which
term, to return to the subscribers the paid in funds with the prescribed
is calculated for the paid in
interest.
funds and the method of its
computing
8.6. Name and head office
of the party maintaining the
registry and making the
Central Registry, Securities Depositary and Clearinghouse, 5, Trg Nikole
clearing and settlement of
Pašića Str., Beograd
liabilities for securities
intended to be issued
(Central Registry)
9. SECURITIES MARKET
9.1. Name and head office of the organized Over-the–counter market of the BELGRADE STOCK
market, date of introduction of the same EXCHANGE AD Beograd, Omladinskih brigada 1,;
type of securities into the organized market shares have been traded upon since August 17,
within the last six months, stating the 2006.
highest and the lowest realized price
From April 20, 2007. until October 20, 2007., 16.228
individual ordinary shares have been traded upon (
Din. 2,035,381,089 )

A concerns ordinary shares, the lowest price in the

last six months was 114.000, while the highest was
150,000 (from April 20, 2004. until October 20,
2007.)
(data are taken from the official Internet Site of
Belgrade Stock Exchange)

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10. SUMMARY BASIC INFORMATION ON THE SHARES ISSUER
10.1. Date of decision making on the grounds of which
the issuance of securities is made , as well as the
name of the competent authority of the issuer
that made such a decision
10.2. Purpose of the funds collected by the securities
issue;
10.3. Main data on business performance and issuer’s
development plan
11. BROKER-DEALER COMPANY AND/OR AUTHORIZED BANK PARTICIPATING IN THE PUBLIC
OFFER ORGANIZATION
11.1. Corporate name and head office of the agent, i.e.,
underwriter of the issue taking part in organizing
securities issuance;
11.2. Corporate name, head office of the principal organizor
of issuance, in case more persons take part in the
issuance organization;
11.3. Type of agreement on organizing the issuance and type
of agent’s obligation , i.e., underwriter of the issue;
11.4. Amount of compensation which the agent, i.e.,
Share issue is made in compliance with the
Decision on tthe XX Issue of Ordinary Shares of
Komercijalna Banka ad Beograd by the public
offer for the purpose of capital increase. Decision
(number 17220/2) is made at the General
Meeting of the Bank held on October 19, 2007.
Purpose of the funds which are collected by this
share issue is the performance of operations
from the Bank’s scope of activities: long-term
and short-term corporate and retial lending and
the realization of the Bank’s development plans.
Summary results realized in 2006.
Komercijalna banka ad Beograd has realized the
scope of operations of almost EUR 2 billion, with
the increase of 43% in comparison to the
previous year; the Bank’s capital has incresed by
78% and together with reserves it exceeded EUR
200 million, making our Bank the second Bank of
such size in our market; deposits amounted to
almost EUR 1 billion, and the realized operating
income amounted to almost EUR 11 million,
which is by 68% more than in the preious year.
Qualitative indicators have also been
significantly improved: profit and equity ratio
(ROE) from 7,62% to 9,71%, return on assets
rate (ROA) from 0,69% to 0,84%, capital
adequacy from 15,37 to 17,28, income and
expences ratio, etc.
Activities which wil, in the future, be the Bank’s
priorities are the strengthening of the capital
base, overall introduction of new organizational
structure, improvement of funds management
quality, implementation of new IT infrastructure,
introduction of new banking products,
development of investment banking by way of
establishment of mutual fund.
Komercijalna Banka ad Beograd
independently organizes public offer of XX
issue of shares
-
-
-
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 issuance underwriter charges to the issuer for the
services related to the organization of the issue,
11.5.The agent’s liability, i.e., the issuance underwriter. -

B) MAIN PROSPECTUS
’’ Prospectus on securities issuance , with the data contained in the appendix thereof, comprises all
material data for enabling the investors to make an objective evaluation of the financial and legal
position of the securities issuer, as well as the evaluation of rights and liabilities arising from the
resepective securities“.
’’Prospectus on securities issuance does not contain data which may give rise to the adverse opinion
of the investor regarding the securities issuer, securities intended to be issued, and already issued
securities“.
1. DATA ON THE SHARES ISSUER
1.1. BASIC DATA

1.1.1. Name, head office, address,Registry and Tax KOMERCIJALNA BANKA AD BEOGRAD, Svetog
Identifiaction No.; Save 14, 11000 Beograd,
RN-07737068, TIN- SR 100001931
1.1.2. Number and date of registration with the Serbian The subscription with the Serbian Business
Business Registers Agency Registers Agency was made on April 14,
2005., and the decision number is
BD 10156/2005

1.1.3. Date of establishment Komercijalna Banka ad, Beograd operates, with

the present name, since April 12, 1995

1.1.4. Position of the issuer within the group

1.1.4.1. Realation with other Komercijalna Banka ad Beograd has a status of the parent
companies; company for Komercijalna Banka ad Budva (as a related
Bank) and for Komercijalna Banka ad Banja Luka (as a
related Bank).
Representative offices of Komercijalna Banka ad Beograd:
-Representative office of Komercijalna Banka ad Beograd in
Frankfurt
(Executive Board made the Decision No. 17620 of September
28, 2007. that the Bank’s Representative Office in
Frankfurt/Main shall be dissoluted on September 30, 2007.
The procedure for dissolutrion of the representative office in
FR of Germany is underway, upon completion of which the
NBS shall be notified for the purpose of deleting the
representative office from the Registry.)
-Business unit of Komercijalna Banka ad Beograd in
Frankfurt/Main,
Zweigstelle fur Finanzdienstleistungen in Frankfurt am Main,
operates at the address: Carol-Theodor-Reiffenstein-Platz 7
(Decision of the NBS No. 2533 of June 10, 2005. on giving
approval for opening a business unit)
-Representative office of Komercijalna Banae ad Beograd in
Zagreb, (established under the Decision of the NBS No. 3932
of October 29, 2003. and the Decision of the HNB No. 132-
020/04-04/ŽR April 2004.)

11
1.1.4.2. The manner the issuer is
Share in the share capital of other legal entities
related to other legal entities

THE BANK’S SHARE IN THE CAPITAL OF OTHER BANKS AND COMPANIES IN THE COUNTRY, AS AT
SEPTEMBER 30, 2007.
No. Identification Name of the company/the bank % of the share in the
number shareholders capital

1. 07144288 IMK 14. OKTOBAR AD Kruševac 11,13%

2. 07046898 Comp. Dunav osiguranje ado Beograd 10,11%

THE BANK’S SHARE IN THE CAPITAL OF OTHER BANKS AND COMPANIES ABROAD AS AT SEPTEMBER
30, 2007.
Identification % of the share in the
No. Name of the company/the bank
number shareholders capital
KOMERCIJALNA BANKA AD
1 02373262 100%
BUDVA AFFILIATE
KOMERCIJALNA BANKA AD
2 11009778 99,99%
BANJA LUKA

3 90001752 EUROAXIS BANKA AD MOSKVA 10,37%

NOTE: The above table states the data on the Bank’s share in the shareholders capital of other
Banks and companies amounting to more than 10%. The Bank has a share in the capital of other
companies, but with the percentage ranging from 0 to 5%.
1.1.4.3. The grounds of the issuer’s participation in
the management of other legal entities, Share in the shareholders capital of other legal
i.e., the grounds of participation of other entities, i.e., share of other legal entities in the
entities in the management of issuer’s legal share capital of Komercijalna Banka ad.
entity;

1.1.5. General enactments of the issuer

Place and date when the insight into the founders enactment or the statute or other general enactments of
the issuer , together with the latest changes and amendments, can be made;
In the Head Office of the Bank, 14, Svetog Save Str., Beograd in the Legal Operations Division,
from Monday to Friday in the period from 09.00 A.M. until 04.00 P.M., with the prior
announcement.

1.2. ISSUER’S CAPITAL

1.2.1. Capital (data from the latest financial statement) 31.12.2006. (in Din. 000 )
1.2.1.1. Total capital; 15.994.553
1.2.1.2. Share capital (initial capital) 8.856.630
1.2.1.3. Issuance preimum 3.961.520
1.2.1.4. Own shares 164.410
1.2.1.5. Other assets 9.150
1.2.1.6. Reserves 1.193.290

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1.2.1.7. Revaluation reserves 769.267
1.2.1.8. Accumulated loss -
1.2.1.9. Accumulated gain 1.369.106

1.2.2. Issued shares

1.2.2.1. Number of issued ordinary shares,
CFI code and ISIN number
1.2.2.2. Number of issued preference shares
per classes, CFI code and ISIN
number
1.2.2.3. Rights arising from shares, under
types and classes;
848.312, CFI–ESVUFR, ISIN - RSKOBBE33594
37.351, CFI– EPNXAR, ISIN- RSKOBBE95171
Owners of preference shares have the following rights arising
from shares:
1. priorities in realtion to ordinary shares concerning priorities
to dividend paymnts,
2. priority of collection at the Bank’s liquidation;
3. other rights stipulate by the law and decision on issue of
shares.

Owners of common shares have the following rights arising

from shares:

1. right of access to legal enactments and other documents

and information of the company;
2. right to participate in the work of the Bank’ s General
Meeting, in the manner and under conditions stipulated by
the Statute;
3. right to vote in the General Meeting of the Bank so as that
one share always entitles the right to one vote, in the
manner and under conditions stipulated by the Statute;
4.right to divident paymnet, after paymnets of dividends for
all issued prefernce shares in the full amount is effected;
5. right to participate in the allocation of liquidation surpluss
upon liquidation fo the Bank, and after effecting payments
to creditors and shreholders of preference shares;
6. preferential right of acquisition of shares from new issues
and convertible bonds;
7. right of disposal with shares, pursuant to the law;
8. other rights pursuant to the law and the decision on the
share issue.

1.2.2.4. Manner of share issuance; By public offer, without public offer, debt-equity swap,
without public offer for the known professional investor
and by Decisions of the Bank’s General Meeting

1.2.3. Changes in capital

1.2.3.1.The provisdions of general enactments of the issuer related to changes in capital are stated
Article 14., item 4.of the Statute, Article 9. of Articles of Association of Komercijalna Banka ad
Beograd

1.2.3.2. Description of changes in the initial capital, revaluation and other reserves, subscribed, but not paid in
capital, repurchased own shares, issuance premium, own shares, total capital (Data are given for the previous
threes years) (in Din. 000);
2004 2005 2006

13
Capital 6.285.596 8.941.969 15.994.553
- share capital 5.364.783 6.735.850 8.856.630
- issuance premium - - 3.961.520
- own shares - - 164.410
- other assets 7.980 9.150 9.150
- reserves 474.449 843.290 1.193.290
-revaluation reserves - 607.495 769.267
-accumulated profit 438.384 746.184 1.369.106

1.2.3.3. Important elements of the issuer’s founders enactment on the granted capital, date of making the
decision and the amount of capital increase
-

1.2.3.4. Material elements of the founder’s enactment, date of making

the decision on conditional capital increase, amount of capital
increase, number and type of issued shares, with the detailed
description of conditions for their issuance
-
1.2.4. Own shares
1.2.4.1. number and percentage of own shares as per the class; On December 31, 2006., the
number of own shares
amounted to 16.441 shares;
1,93808 % (from the total no.
of ordinary shares)
On October 25, 2007., the
number of own shares amounts
to 12.060 individual shares
1,42165% (from the total
number of ordinary shares)
1.2.4.2. time and reason of aquisition; By liquidation of "1+2"
company, Frankfurt, FR of
Germany, the Bank acquired,
on October 2, 2006., as the
legal successor, 16,441
individual ordinary shares. Until
October 2007., the Bank
allienated, by offer for sale
(allienation) pro rata and sale
on the Stock Exchange,
allienated 4.381 shares.
1.2.4.3. data on the portfolio of own shares; -

1.3. BOOK-KEEPING VALUE OF SHARES AND ISSUER’S SECURITIES

1.3.1. Book-keeping value of shares
1.3.1.1. The latest computed book-keeping value of shares as per classes and dates of determining the

14
relevant value, and in case the latest book-keeping value of shares is calculated according to data without the
auithorized auditor’s report, the book-keeping value of shares determined on the basis of revised data, should
also be stated ; a short descirpition of methods used for calcultaion of boook-keeping value of shares;

Book-keeping value of shares, uder finacial statements for 2006. acknowledged by the
independent auditor, is calculated by dividing total capital with the total number of issued shares.
Book-keeping value of shares amounts to Din. 18.059,41.

1.3.2. Issuer’s securities trading

1.3.2.1. Organized market for trading the issuer’s Belgrade Stock Exchange ad Beograd over-
shares; the- counter market
1.3.2.2. Time prprovided for trading with these As per the Rule Book of Belgrade Stock
securities; Exchange
1.3.2.3. Graffic presentation of daily price fluctuations and transation volume in the previous six months –
whereas the x axes represents the date, and y axis stands for the price, i.e. transaction volume;

KMBN (price) KMBN (volume)

Presentation of daily price fluctuations and transactions volume for ordinary voting right shares.

15
Presentation of daily price fkuctuations and transactions volume for preference shares.

1.4. SHARE HOLDERS

Ordinary Shares
Number of
1.4.1. Name/corporate name of % of voting
voting right
the holder right shares
shares
REPUBLIC OF SERBIA 341.965 40,31123
EBRD LONDON 212.078 25,0000
IBT 42.159 4,96975
JUGOBANKA AD in bankruptcy 32.160 3,79106
INVEJ DOO 31.887 3,75888
COMP. DUNAV OSIGURANJE
30.371 3,58017
ADO
EVROPA OSIGURANJE AD in
26.000 3,06491
bankruptcy
STANKOM CO. 13.711 1,61627
KOMERCIJALNA BANKA AD 12.060 1,42165
RAIFFEISEN ZENTRALBANK 6.635 0,78214
(The Table discloses data for entities holding more than 5% of voting right shares or for 10 largest
shareholders with the voting right.)
1.4. SHARE HOLDERS
Preference Shares
Number of % of
1.4.1. Name/corporate name of
preference preference
the holder
shares shares
BALORDA BRANISLAV 7.060 18,90177
CUSTODY ACCOUNT 3.819 10,22463
PRIVREDNA BANKA ZAGREB
1.859 4,97711
DD
POLITIKA AD 1.824 4,88340
JUGOBANKA AD in bankruptcy 1.809 4,84324
BOJANIĆ SOFIJA 1.744 4,66921
HYPO ALPE-ADRIA-BANK AG 1.556 4,16589
PAVLOVIĆ JOVICA 1.554 4,16053
STEVE FOOD DOO 1.402 3,75358
JP SRBIJAGAS NOVI SAD 1.040 2,78440
Data sources: CENTRAL REGISTRY, CENTRAL SECURITIES DEPOSITORY AND CLEARINGHOUSE
of

16
October 5, 2007.

2. BUSINESS ACTIVITIES, PROPERTY AND OTHER LIABILITIES OF THE ISSUER

2.1. BUSINESS ACTIVITIES OF THE ISSUER
In case the issuer holds the position of a parent company, together with the data on the issuer, the same
data for related companies are also given (with the issuer holding 25% and more share in the initial capital)
together with the corporate name, head office, identification number of the related company and the
percentage of share in capital and decision making the parent company holds in the related company;

Since December 31, 2006., Komercijalna Banka ad Beograd holds the status of the parent
company in relation to Komercijalna Banka ad Budva and Komercijalna Banka ad Banja Luka
affiliates.
Komercijalna Banka ad Budva, IN-02373262, Podkošljun bb, Budva, Montenegro affiliate.
Komercijalna Banka ad Beograd has 100% of share in the shareholders capital of Komercijalna
Banka ad Budva affiliate.
The Bank’s affiliate in Budva, as the independent unit, operates since March 2003. and upon
obtaining the approval from the Central Bank of Montenegro. Development policy and strategy
of the affiliate, set by the General Meeting of the Shareholders of the Affiliate, have been
approved by the Central Bank of Montenegro.

Komercijalna Banka ad Banja Luka, TIN-4950128530005, Veselina Masleše 6, Banja Luka.

Komercijalna Banka ad Beograd has 99,99% share in the shareholders capital of Komercijalna
Banka ad Banja Luka.
Komercijalna Banka ad Banja Luka operates since the end of 2006., and upon obtaining the
approval from the competent authorities of the Rebublic of Srpska and Federation of Bosnia and
Herzegovina. Strategy and business policy is determined by the shareholders of the Bank
pursuant to legal regulations of the Federation of Bosnia and Herzegovina.

2.1.1. Main scope of activities

2.1.1.1. Name and code of the main activity; 065121-banking organization

2.1.2. Operating income

2.1.2.1. Value of the operating income under which Din. 000 Din. 000 Din. 000
the issuer generates the largest income for the 2004 2005 2006
previous three years;
Interest income 3.054.730 5.302.228 6.548.498
Fees and commmisions income 2.013.116 2.610.575 2.632.557
Dividends and share income 56.355 21.774 76.107
Other operating income 1.364.384 854.566 3.351.956
Income generated from the changes in property
784 2.561.679 1.577.197
value and liabilities
Extraordinary income 111.384 - -
Total: 6.600.753 11.350.822 14.186.315

17
2.1.3. Market position
2.1.3.1. Estimation of the issuer’s share on the commodity and services market as per the issuer’s activities;
main competitors on the respective market and estimation of their market share;
According to the NBS data, and under the criteria of the total balance sheet assets as at June 30,
2007., Komercijalna Banka ad takes the fourth position, i.e., accounts for the 8,02% of the total
balance sheet assets of all banks performing operations on domestic market. Major competitors,
as per the criteria of the total balance sheet assets, are Hypo Alpe-Adria-Bank ad, Banca Intesa
ad, Raiffeisen Bank ad, AIK Bank, at al. As per the business network criteria, the Bank’s
competitors are the banks which also have developed business network.

2.1.4. Operations performed out of head office

2.1.4.1. Name of the place, except for the issuer head office, where the issuer performs its activities –
organization and business units, and representative offices;
THE BANK’S BUSINESS NETWORK

No. Name of the organizational part ADDRESS

HEAD OFFICE OF THE BANK – Bank’s Svetog Save 14, Svetogorska 42-44, Kralja Petra I 19-
Divisions 21, Makedonska 29 (BEOGRAD)
Retail Operations Division Kralja Petra 19-21
Head Office Kralja Petra 19-21
I Belgrade Branch Svetogorska 42-44
Branch Head Office Svetogorska 42-44
1 Svetog Save 14 sub-branch Svetog Save 14
2 Makenzijeva 65 sub-branch Makenzijeva 65
3 Brankova 34 sub-branch Brankova 34
4 Ljermontova 12a sub-branch Ljermontova 12a
5 Bulevar Kralja Aleksandra 191 sub-branch Bulevar Kralja Aleksandra 191
6 Bulevar AVNOJA 104 sub-branch Bulevar AVNOJ-a 104, SIV II
7 Institut „Vinča“ sub-branch Institut Vinča, Mike Alasa bb
8 Kneza Višeslava sub-branch Kneza Višeslava 118
9 Luke Vojvodića sub-branch Luke Vojvodića 77a
10 Vojislava Ilića 62 sub-branch Vojislava Ilića 62
11 Blagoja Parovića 25a sub-branch Blagoja Parovića 25a
12 Batajnica sub-branch Majora Z.Radosavljevića 216-218
13 Savska 35 sub-branch Savska 35
14 YUBC I sub-branch YU biznis centar I, Bul.Mihajla Pupina 10
15 Knez Mihajlova 35 sub-branch Knez Mihajlova 35
16 Bulevar Mihajla Pupina 2/SIV I sub-branch Bul.Mihajla Pupina 2, SIV I
17 Trg Nikole Pašića 2 sub-branch Trg Nikole Pašića 2, Igumanova palata
18 Kneza Miloša 83 sub-branch Kneza Miloša 83
19 Despota Stefana 107 sub-branch Despota Sefana 107
20 Bačvanska 14 sub-branch Bačvanska 14
21 Despota Stefana 24 sub-branch Despota Sefana 24
22 Zemun I sub-branch Zemun, Cara Dušana 196
23 Bežanijska kosa I sub-branch Ljubinke Bobić 14
24 Čukarica sub-branch Šumadijski trg 2
25 Trg Nikole Pašića 7 sub-branch Trg Nikole Pašića 7

18
26 Svetogorska 42-44 sub-branch Svetogorska 42-44
27 Zemun II sub-branch Omladinski trg 2
28 Kneza Miloša 101 sub-branch Kneza Miloša 101
29 Cvijićeva 93A sub-branch Cvijićeva 93a
30 Palilula sub-branch Mije Kovačevića 15
31 Ruzveltova sub-branch Ruzveltova 45
32 Vojvode Stepe sub-branch Vojvode Stepe 259
33 Bulevar Kralja Aleksandra sub-branch Bulevar Kralja Aleksandra 251
34 Andre Nikolića sub-branch Andre Nikolića 3
35 Ustanička sub-branch Ustanička 63
36 Vojvode Stepe sub-branch Vojvode Stepe 110
37 27.marta sub-branch 27. marta 7-13
38 Ustanička sub-branch Ustanička 194
39 Jurija Gagarina sub-branch Jurija Gagarina 221
40 Bežanijska kosa II sub-branch Bežanijska Kosa II, Ljubinke Bobić 28
41 Zemun III sub-branch Zemun, Prvomajska 8
42 Zemun IV sub-branch Zemun, Rajačićeva 2
43 Bul.Umetnosti sub-branch Bulevar Umetnosti 16 - JAT
44 Svetogorska II sub-branch Svetogorska 42-44
45 Bul. Mihajla Pupina 165 sub-branch N.Bgd, Bulevar Mihajla Pupina 165
46 Kneza Miloša 4 sub-branch Kneza Miloša 4
47 Voždovac sub-branch Voždovac, Stevana Prvovenčanog 1
48 Bul. Zorana Đinđića sub-branch Bul. Zorana Đinđića 45a
49 Vojvode Šupljikca sub-branch Vojvode Šupljikca 51
50 Kralja Milutina sub-branch Kralja Milutina 53
51 Aerodrom „Beograd“sub-branch Aerodrom Beograd
52 Petra Martinovića sub-branch Petra Martinovića 37
53 Kralja Petra 1 sub-branch Kralja Petra 19-21
54 Kralja Petra 2 sub-branch Kralja Petra 19-21
55 Tošin bunar sub-branch Tošin bunar 159
56 YUBC II sub-branch YU biznis centar II,Bul.Mihajla Pupina 10D
57 Marije Gregoran sub-branch Marjane Gregoran 56
58 PTC Banjica sub-branch PTC Banjica, Paunova 24
59 Beli Potok sub-branch Beli Potok, Bul. JNA 38
60 Zemun V sub-branch Zemun, Altina, Dobanovački put 58
61 Makedonska sub-branch Makedonska 4
62 Makedonska sub-branch Makedonska 32
63 Makedonska 29 sub-branch Makedonska 29
64 Bul. Kralja Aleksandra sub-branch Bul.Kralja Aleksandra 328
65 Palmira Toljatija sub-branch Stari Merkator, Palmira Toljatija 5
66 Obrenovac I sub-branch Obrenovac, Karađorđeva 10
67 II sub-branch Obrenovac, Vuka Karadžića 56
68 Padinska Skela sub-branch Padinska skela, Industrijsko naselje bb
69 Sopot sub-branch Sopot, Kosmajski trg 14
70 Mladenovac sub-branch Janka Katića 10
71 Umka sub-branch Umka, 13. Oktobar 37
72 Barajevo sub-branch Barajevo, Svetosavska 20
73 Lazarevac sub-branch Lazarevac, Karađorđeva 28
74 Krnjača sub-branch Zrenjaninski put 83a
75 Kožičanskog 2 sub-branch Kožičanskog 2
76 Železnik sub-branch Železnik, M.Tita 2

19
77 Stara Pazova sub-branch Stara Pazova, Svetosavska 2
78 Pančevo sub-branch Nikole Tesle 9
79 Kovačica sub-branch Kovačica, Masarikova 65
80 Crepaja sub-branch Crepaja, Trg oslobođenja 5
81 Kosovska Mitrovica sub-branch Kosovska Mitrovica, Kralja Petra I 33
82 Štrpce sub-branch Hotel „Narcis“, Štrpce, Brezovica
83 Leposavić sub-branch Leposavić, 29.novembra 42a
84 Zubin Potok sub-branch Zubin Potok, Vojvode Rada bb
85 Ranilug sub-branch Ranilug
86 Zvečan sub-branch Zvečan, Kralja Milutina 52

87 Gračanica sub-branch Gračanica

88 Šilovo sub-branch Selo Šilovo

89 Dragaš sub-branch Dragaš

II Kruševac Branch Trg oktobarske revolucije 1
Branch Head Office Trg oktobarske revol. br.1.
90 Sub-branch head office Kruševac Trg oktobarske revol. br.1.
91 Sub-branch Kruševac I Pana Đukića br. 30.
92 Sub-branch Kruševac II Vece Korčagina br. 26.
93 Sub-branch Kruševac IV JNA br. 8.
94 Sub-branch Kruševac V Trg rasinskih partizana b.b.
95 Sub-branch Aleksandrovac I 29. Novembra br. 98.
96 Sub-branch Aleksandrovac II Trg oslobođenja b.b.
97 Sub-branch Brus Kralja Petra I b.b.
98 Sub-branch Varvarin Marina Marinovića br. 87.
90 Sub-branch Ražanj Partizanska br. 79.
91 Sub-branch Ćićevac Karađorđeva br. 96.
92 Sub-branch Veliki Šiljegovac 37204 Veliki Šiljegovac
93 Sub-branch Aleksinac Drakčeta Milovanovića br.6.
94 Sub-branch Trstenik Vuka Karadžića br. 46.
95 Sub-branch STOPANJA 37242 Stopanja
III Niš Branch Episkopska 32

Branch head Office Episkopska 32

96 Sub-branch Niš I s Nikole Pašića 41
97 Sub-branch Niš II Nade Tomić 14
98 Sub-branch Niš III Vojvode Tankosića 15
99 Sub-branch Niš IV Nikole Pašića 24
100 Sub-branch Niš V Episkopska 32
101 Sub-branch Leskovac I Leskovačkog odreda 1
102 Sub-branch Leskovac II Bulevar oslobođenja 92
103 Sub-branch Vlasotince Trg oslobođenja 6
104 Sub-branch Gradin Granični prelaz
105 Sub-branch Pirot I Jevrejska 15
106 Sub-branch Pirot II Trg oslobođenja bb
107 Sub-branch Pirot III Srpskih vladara 82
108 Sub-branch Kuršumlija Proleterskih brigada bb
109 Sub-branch Prokuplje Ratka Pavlovića bb
110 Sub-branch Medveđa Jablanička 61
111 Sub-branch Lebane Cara Dušana 12
112 Sub-branch Blace Karađorđeva 197
113 Sub-branch Babušnica Živojina Nikolića Brke 5

20
114 Sub-branch Sokobanja Aleksandra Markišića 11
115 Sub-branch Žitorađa Vojvode Mišića 1/3
116 Sub-branch Merošina Cara Lazara 29
117 Sub-branch Svrljig Dušana Trifunca 2
IV Čačak Branch Železnička bb
Branch Head Office Železnička bb
118 Sub-branch Čačak I Kuželjeva 20
119 Sub-branch Čačak II TC Vavilon, Železnička bb
120 Sub-branch Čačak III Župana Stracimira 23
121 Sub-branch Čačak IV-Autočačak Konjevići bb
122 Sub-branch Guča Republike 68
123 Sub-branch Lučani Bulevar JNA bb
124 Sub-branch Gornji Milanovac Vojvode Milana 2
125 Sub-branch Mrčajevci Radomira Novakovića bb
126 Sub-branch Ivanjica Javorska 1
V Novi Sad Branch Trg Slobode 4
Branch Head Office Trg Slobode 4
127 Sub-branch Novi Sad I Kralja Petra Prvog 11
128 Sub-branch Novi Sad II Trg slobode 4
129 Sub-branch Novi Sad III Bul.Mihajla Pupina 6
130 Sub-branch Bečej I Borisa Kidriča 88
131 Sub-branch Bečej II Moše Pijade 2
132 Sub-branch Vrbas I Narodnog fronta 70
133 Sub-branch Vrbas II Maršala Tita 49
134 Sub-branch Bačka Palanka Trg bratstva i jedinstva 30-32
135 Sub-branch Futog Cara Lazara 28
136 Sub-branch Inđija Vojvode Stepe 8
137 Sub-branch Bač Maršala Tita 2
VI Novi Pazar Branch Njegoševa 1
Branch Head Office Njegoševa 1
138 Sub-branch Novi Pazar I Šabana Koče 71
139 Sub-branch Novi Pazar II Njegoševa 1
140 Sub-branch Raška II Nemanjina 10
141 Sub-branch Sjenica Kej bb
142 Sub-branch Tutin Ferhadija 13
VII Kragujevac Branch Kneza Miloša 3
Branch Head Office Kneza Miloša 3
143 Sub-branch Kragujevac I Trg Slobode 3
144 Sub-branch Kragujevac II Kneza Miloša 6
145 Sub-branch Kragujevac III Kneza Miloša 3
146 Sub-branch Aranđelovac Knjaza Miloša 212
147 Sub-branch Topola Bul.Kralja Aleksandra I 26
148 Sub-branch Lapovo Kralja Petra I 4
149 Sub-branch Batočina Kralja Petra 64
VIII Valjevo Branch Gradski trg bb
Branch Head Office Gradski trg bb
150 Sub-branch Valjevo I Gradski trg bb
151 Sub-branch Valjevo II Uzun Mirkova bb
152 Sub-branch Osečina Karađorđeva 141
153 Sub-branch Mionica Tike Marića 15
154 Sub-branch Lajkovac Vojvode Mišića 84

21
155 Sub-branch Ljig Vojvode Mišića bb
156 Sub-branch Ub Kralja Petra I br.2
157 Sub-branch Gornja Toplica Hotel Vrujci
IX Šabac Branch Gospodar Jevremova 2
Branch Head Office Gospodar Jevremova 2
158 Sub-branch Šabac Gospodar Jevremova 2
159 Sub-branch Vladimirci Svetog Save bb
160 Sub-branch Koceljeva Nemanjina 95
161 Sub-branch Prnjavor Arčibalda Rajsa bb
X Subotica Branch Korzo 10
Branch Head Office Korzo , 10
162 Sub-branch Subotica I Segedinski put 45
163 Sub-branch Subotica II Korzo , 5
164 Sub-branch Subotica III Korzo , 10
165 Sub-branch Kelebija Granični prelaz
166 Sub-branch Kanjiža Glavna ulica, 16
167 Sub-branch Horgoš Granični prelaz
168 Sub-branch Bačka Topola Maršala Tita 57
169 Sub-branch Senta Glavni trg 8
XI Požarevac Branch Moše Pijade 2
Branch Head Office M.Pijade 2
170 Sub-branch Požarevac I M.Pijade 2
171 Sub-branch Požarevac II M.Pijade 8
172 Sub-branch Požarevac III M.Pijade 8
173 Sub-branch Žabari Kneza Miloša 56
174 Sub-branch Petrovac Srpskih Vladara 240
175 Sub-branch Veliko Gradište Kneza Lazara 47
176 Sub-branch Kučevo Svetog Save 87
177 Sub-branch Golubac Golubački trg 1
178 Sub-branch Žagubica Trg J.Šerbanovića 1
179 Sub-branch Kostolac Trg B.Jedinstva 1
XII Smederevo Branch Karađorđeva 28
Branch Head Office Karađorđeva 28
180 Sub-branch Smederevo I Karađorđeva 30
181 Sub-branch Smederevo II Karađorđeva 37
182 Sub-branch Smederevo III Šalinački put bb
183 Sub-branch Kovin Vojvođanska 5
184 Sub-branch Grocka Srpsko grčkog prijateljstva 1
XIII Loznica Branch Gimnazijska 1
Branch Head Office Gimnazijska 1
185 Sub-branch Loznica I Kneza Miloša bb
186 Sub-branch Loznica II Gimnazijska 1
187 Sub-branch Banja Koviljača I Maršala Tita bb
188 Sub-branch Banja Koviljača II Park 4
189 Sub-branch Mali Zvornik Kralja Petra I 37
190 Sub-branch Krupanj Mačkov kamen 1
XIV Jagodina Branch Kneginje Milice 24
Branch Head Office Kneginje Milice 24
191 Sub-branch Jagodina I Kneginje Milice 15
192 Sub-branch Jagodina II Kneginje Milice 24
193 Sub-branch Svilajnac Ustanička 1

22
194 Sub-branch Paraćin Tome Živanovića
195 Sub-branch Despotovac Kralja Milana 14
196 Sub-branch Ćuprija Miodraga Novakovića bb
197 Sub-branch Velika Plana Miloša Velikog 61
198 Sub-branch Smed.Palanka I Srpskog ustanka 5
199 Sub-branch Rekovac Kralja Petra I 44
200 Sub-branch Krnjevo Bulevar Oslobođenja 1b
XV Filijala Kraljevo Trg srpskih ratnika bb
Sedište Filijale Trg srpskih ratnika bb
201 Sub-branch Kraljevo I Vojvode Putnika 3
202 Sub-branch Kraljevo II Milosa Velikog 31
203 Sub-branch Kraljevo III Trg srpskih ratnika bb
204 Sub-branch Vrnjačka Banja Nemanjina 11
205 Sub-branch Ušće 23 novembra bb
XVI Priboj Branch Meše Selimovića 1
Branch Head Office Meše Selimovića 1
206 Priboj sub-branch Meše Selimovića 1
207 Nova Varoš sub-branch Oslobodilaca 1
208 Prijepolje sub-branch Stara centrala bb
XVII Užice Branch Dimitrija Tucovića 151
Branch Head Office Dimitrija Tucovića 151
209 Užice I sub-branch Dimitrija Tucovića 151
210 Užice II sub-branch Nade Matić 8
211 Sub-branch Užice III Petra Ćelovića 4
212 Sub-branch Požega Nikole Pašića 2
213 Sub-branch Bajina Bašta Svetosavska 30
214 Sub-branch Zlatibor TR Centar "Brvnara" bb
215 Sub-branch Arilje Svetog Ahilija 20
216 Sub-branch Kosjerić Karađorđeva 41
XVIII Sremska Mitrovica Branch Kralja Petra I 5-7
Branch Head Office Kralja Petra I 5 - 7
217 Sub-branch Srem.Mitrovica Kralja Petra I 5 - 7
218 Sub-branch Ruma Poslovni centar bb
219 Sub-branch Batrovci Granični prelaz
220 Sub-branch Šid Karađorđeva 7
XIX Vranje Branch S.Prvovenčanog 58
Branch Head Office S.Prvovenčanog 58
221 Sub-branch Vranje I Matije Gupca 4
222 Sub-branch Vranje II S.Prvovenčanog 58
223 Sub-branch Bujanovac I K.Petrovića 12
224 Sub-branch Bujanovac II Karadjordjev trg bb
225 Sub-branch Vladičin Han Nikole Tesle 1
226 Sub-branch Surdulica Peti septembar 7
227 Sub-branch Preševo Save Kovačevića 2
228 Sub-branch Bosilegrad Georgi Dimitrova 73
229 Sub-branch Trgovište Maršala Tita 1
XX Zaječar Branch Nikole Pašića 25
Branch head Office Nikole Pašića 25
230 Sub-branch Zaječar Nikole Pašića 25
231 Sub-branch Negotin Trg Đorđa Stanojevića 1
232 Sub-branch Bor I Moše Pijade 5

23
 233 Sub-branch Bor II Zeleni Bulevar 4
234 Sub-branch Knjaževac Branka Radičevića 2
235 Sub-branch Majdanpek Šaška 5
236 Sub-branch Donji Milanovac Kralja Petra 59
237 Sub-branch Boljevac Kralja Aleksandra 17/2
238 Kladovo sub-branch Kralja Aleksandra 42
XXI Zrenjanin Branch Trg Slobode 5
Branch Head Office Trg Slobode 5
239 Zrenjanin I sub-branch Beogradska bb
240 Zrenjanin II sub-branch Trg Slobode 5
241 Novi Bečej sub-branch Žarka Zrenjanina 4
242 Sečanj sub-branch Vožda Karađorđa bb
243 Žitište sub-branch Cara Dušana
XXII Sombor Branch Staparski put 14
Branch Head Office Staparski put 14
244 Sombor sub-branch Staparski put 14
245 Apatin sub-branch Srpskih vladara 2
246 Kula sub-branch Lenjinova 14
247 Crvenka sub-branch Moše Pijade 47
248 Odžaci sub-branch Knez Mihajlova 37
XXIII Vršac Branch Trg Save Kovačevića 2
Branch Head Office Trg Save Kovačevića 2
249 Vršac I sub-branch Trg Save Kovačevića 2
250 Vršac II sub-branch Anđe Ranković 14
251 Bela Crkva sub-branch Proleterska 4
XXIV Kikinda Branch Kralja Petra I 39
Branch Head Office Kralja Petra I 39
251 Kikinda I sub-branch Kralja Petra I 39
252 Kikinda II sub-branch Generala Drapšina 30

2.1.5. Special circumstances

2.1.5.1. Other material facts and circumstances related to the issuer performance, which may have influence
on the data on issuer performance are also been stated;
-

2.1.6. Interruptions in business performance

2.1.6.1. Interruptions in the issuer’s operations in the previous three years as well as the reasons of
interruptions have also been stated;
There were no interruptions in business performnace

2.2. PROPERTY AND LIABILITIES OF THE ISSUER

Together with the data on the issuer, in case the issuer holds the position of the parent company, the same
data for the related companies are also been stated together with the name of the related company;

2.2.1. Real estates, facilities and equipment

24
2.2.1.1. Data on real estates, type, placeof location, surface covered, value of the relevant real estate,
including the real estate given and/or taken in lease;

Name and type Purpose of the Property value in

Location Land surface (m2 )
of land land 000
-

FACILITIES OWNED BY KOMERCIJALNA BANKA AD BEOGRAD

Value of the
Type (purpose) of Surface of the property
Place Address
the facility facility (m2) (current in
Din.000)
BEOGRAD BUSINESS PREMISES Svetogorska 42 – 44 3.332,58 *
BEOGRAD BUSINESS PREMISES Blagoja Parovića 25a 84,26
BEOGRAD BUSINESS PREMISES Vojvode Stepe 110 69,00+19,44
BEOGRAD BUSINESS PREMISES Makedonska 29 18.084,75
BEOGRAD BUSINESS PREMISES Toše Jovanovića 7 24,05 + 24,05
BUSINESS PREMISES Makenzijeva (Maršala
BEOGRAD 80,00
Tolbuhina ) 65
BEOGRAD BUSINESS PREMISES Palmira Toljatija 5 633,00+4,00
BEOGRAD BUSINESS PREMISES Kralja Petra 19 5.357,60
BEOGRAD BUSINESS PREMISES Pop Lukina 5 138,00
BUSINESS PREMISES Nova Skojevska 77a (Luke
BEOGRAD 80,00
Vojvodića 77a)
BEOGRAD BUSINESS PREMISES Kneza Miloša 83 139,39
BEOGRAD BUSINESS PREMISES 27. marta 7-13 85,52
BEOGRAD BUSINESS PREMISES Vojislava Ilića 62 75,55
BUSINESS PREMISES Josipa Broza 216 and 218
BEOGRAD 32,39 i 32,39
Batajnica
BEOGRAD BUSINESS PREMISES Makedonska 32 70,00
BEOGRAD BUSINESS PREMISES Svetog Save 14 3.511,29

BEOGRAD BUSINESS PREMISES Vojislava Ilića 8 1/18 stana 33,65

BEOGRAD-ZEMUN BUSINESS PREMISES Prva pruga 7 32,00

BEOGRAD BUSINESS PREMISES Samjuela Beketa 5/15 84,25

BEOGRAD BUSINESS PREMISES Samjuela Beketa 5/22 57,14

KRUŠEVAC BRANCH BUSINESS PREMISES

Branch Management BUSINESS PREMISES Trg Oktobarske revolucije 1 2.958,74

VELIKI ŠILJEGOVAC BUSINESS PREMISES P.O. BOX 37204 117,12
BUSINESS PREMISES Residential building, business
BRUS premises P+4 (Address: Kralja 140,15
Petra I bb)

25
KRUŠEVAC BUSINESS PREMISES Ul. JNA br.8 500,00
ALEKSANDROVAC BUSINESS PREMISES
Trg oslobođenja bb 165,00
ŽUPSKI
ALEKSINAC BUSINESS PREMISES D.Milovanovića 6 133,00
ALEKSANDROVAC BUSINESS PREMISES 29.novembra 102 162,00
BUSINESS PREMISES Vece Korčagina 26 (in the real
KRUSEVAC 124,00
estate registry Vula Kačarevića)
BUSINESS PREMISES In the residential- business
141,30 +
TRSTENIK premises C-2
152,90
(Vuka Karadžića 46)
BUSINESS PREMISES Druge dalmatinske prol.brigade
KRUŠEVAC 44,56
bb (now: Kralja A.)
BUSINESS PREMISES Trg Rasinskih partizana, object
KRUŠEVAC 431,51
L4 (sada Trg Kosturnica bb)
BUSINESS PREMISES Blok E, Pensioners Club
VARVARIN residence ( Marina Marinkovića 250,00
87)
BUSINESS PREMISES Karađorđeva bb ( Ul.
ĆIĆEVAC 105,44
Karađorđeva 96)
KRUŠEVAC BUSINESS PREMISES Pana Đukića bb ( P.Đukića 30) 76,13
HOTEL MAXIMAL - BUSINESS PREMISES
JASTREBAC 811 (3 objekta)
JASTREBAC
RAŽANJ BUSINESS PREMISES Partizanska 79 71,21
BUSINESS PREMISES A part of the four
KRUŠEVAC Rasadnik 1, group 9a-D5 rooms appartment
-73.42
KRUŠEVAC BUSINESS PREMISES Residence Prnjavor II, building
61,49
k-5/17
KRUŠEVAC BUSINESS PREMISES Three rooms
III srpske proleterske brigade
appartment
4/13
69,41
NIŠ BRANCH BUSINESS PREMISES
BUSINESS PREMISES Episkopska (D. Dimitrijevića)
NIŠ 410,41
32
VLASOTINCE BUSINESS PREMISES Trg oslobođenja 6 47,00
PIROT BUSINESS PREMISES Trg Dobrice Milutinovića bb 137,00
PROKUPLJE BUSINESS PREMISES Ratka Pavlovića Čička 23 155,00
BUSINESS PREMISES Corner of D.Trifunca and
SVRLJIG 128,00
Hadzićeve
GRADINA BUSINESS PREMISES border line 63,00
SREMSKA BUSINESS PREMISES
MITROVICA BRANCH
SREMSKA MITROVICA BUSINESS PREMISES Kralja Petra I 5-7 231,08

RUMA BUSINESS PREMISES Posl. centar bb 258,00

RUMA BUSINESS PREMISES Orlovićeva 4 66,50

NOVI SAD BRANCH BUSINESS PREMISES

VRBAS BUSINESS PREMISES Maršala Tita 49 420,00

BAČKA PALANKA BUSINESS PREMISES Trg bratstva i jedinstva 30-32 270,85

LOZNICA BRANCH BUSINESS PREMISES

MALI ZVORNIK BUSINESS PREMISES Kralja Petra I 38 86,20

ČAČAK BRANCH BUSINESS PREMISES

26
GUČA BUSINESS PREMISES Republike 65 95,70
ČAČAK BUSINESS PREMISES PTC Vavilon, Železnička bb 308,40

VRŠAC BRANCH BUSINESS PREMISES

VRŠAC BUSINESS PREMISES Trg Save Kovačevića br. 2 305,42

NOVI PAZAR BUSINESS PREMISES
BRANCH
NOVI PAZAR BUSINESS PREMISES Njegoševa 1 460,00

NOVI PAZAR BUSINESS PREMISES Stevana Nemanje bb 27,80

NOVI PAZAR BUSINESS PREMISES Kej skopskih žrtava 44 82,95

ZRENJANIN BUSINESS PREMISES
BRANCH
ZRENJANIN BUSINESS PREMISES Trg slobode 5 311,35

ZAJEČAR BRANCH BUSINESS PREMISES

ZAJEČAR BUSINESS PREMISES Nikole Pašića 27 343,44

ZAJEČAR BUSINESS PREMISES Nikole Pašića 25 29,83

KNJAŽEVAC BUSINESS PREMISES Ali Agićeva 11 189,00

NEGOTIN BUSINESS PREMISES Trg Đ.Stanojevića 5 209,00

POŽAREVAC BUSINESS PREMISES
BRANCH
BUSINESS PREMISES 1.416,48
POŽAREVAC Moše Pijade 2 + 913 additionally
constructed part
POŽAREVAC BUSINESS PREMISES Čede Vasovića 12 334,07
POŽAREVAC BUSINESS PREMISES M.Pijade 8 385,34
POŽAREVAC BUSINESS PREMISES Stari Korzo 36 183,00
KOSTOLAC BUSINESS PREMISES Trg bratstva i jedinstva 1 128,28
PETROVAC BUSINESS PREMISES
Srpskih vladara 240 174,92
NA MLAVI
VELIKO BUSINESS PREMISES
Žike Popovića bb 137,00
GRADIŠTE
KUČEVO BUSINESS PREMISES Svetog Save 87 143,76
GOLUBAC BUSINESS PREMISES Golubački trg 1 75,56
ŽAGUBICA BUSINESS PREMISES Maršala Tita 1 139,00
ŽABARI BUSINESS PREMISES Kneza Miloša 56 34,77

MALO CRNIĆE BUSINESS PREMISES - 48,35

ALEKSANDROVAC BUSINESS PREMISES
- 50,76
POŽAREVAČKI
BRANIČEVO BUSINESS PREMISES - 21,08
SMEDEREVO BUSINESS PREMISES
BRANCH
SMEDEREVO BUSINESS PREMISES Karađorđeva 30 86,13
SMEDEREVO BUSINESS PREMISES Karađorđeva 37 168,13
BUSINESS PREMISES
JAGODINA BRANCH
PARAĆIN BUSINESS PREMISES Tome Živanovića 5 112,00

VRANJE BRANCH BUSINESS PREMISES

VRANJE BUSINESS PREMISES Stevana Prvovenčanog 58 205,00

27
VRANJE BUSINESS PREMISES Stevana Prvovenčanog 68 99,00
BUJANOVAC BUSINESS PREMISES Trg Karađorđa Petrovića bb 130,00
ŠABAC BRANCH BUSINESS PREMISES

ŠABAC BUSINESS PREMISES Gospodar Jevremova 2 2.150,60

PRNJAVOR BUSINESS PREMISES 29.novembra 10 57,75
KOCELJEVA BUSINESS PREMISES Maršala Tita bb 106,00

ŠABAC BUSINESS PREMISES Kneza Miloša 11 16,13

VLADIMIRCI BUSINESS PREMISES Svetog Save 24 75,11

BOGATIĆ BUSINESS PREMISES Maršala Tita 2 95,89

BUSINESS PREMISES
KRALJEVO BRANCH
KRALJEVO BUSINESS PREMISES Srpskih ratnika bb 229,19

PRIBOJ BRANCH BUSINESS PREMISES

PRIBOJ BUSINESS PREMISES M.Selimovića (D.Jaukovića) 1 246,80

BUSINESS PREMISES 29.oktobra 9 (Trg oslobodilaca 205,41
NOVA VAROŠ
1)
BUSINESS PREMISES
ABROAD
MONTENEGRO BUSINESS PREMISES
BUSINESS PREMISES 178,00
Herceg Novi Njegoševa br. 40

Budva APPARTMENT Nanaselje Potkošljun 59,26+ garage

23,80
GERMANY

FRANKFURT APPARTMENT -- 85,46 + parking

4,59
Balance of the Bank’s
property as at September
30, 2007.

* Real estate value owned by the Bank which has not been written off as at December 31, 2006.,
amounts to the total of Din. 6.425.657.000 .
From December 31, 2006. until September 30, 2007., the total book-keeping value of real
estates owned by the Bank was incresed for the value of purchased real estates. Purchasing
value of new real estates of the Bank amounts to Din. 17.662.246. The Bank has also sold the
real estates in the amount of Din. 197.337.008. As at September 30, 2007., the present book-
keeping value of real estates owned by the Bank amounts to Din. 6.288.867.582.

28
 Type (purpose) of Surface of the Value of the
Place Address
the facility facility (m2) property
BANJA LUKA Business Veselina Masleše 6 1.103,15 -
premises
BANJA LUKA Business Put Srsplih Branilaca 31 86,00
premises
BANJA LUKA Business Mladena Stojanovića 26 42,25
premises
LAKTAŠI Business Nemanjina bb 150,00
premises
GRADIŠKA Business Vidovdanska bb 154,17
premises
TOPOLA Business Nova Topola 120 38,00
premises
BRČKO Business Uzunovića 15 280,26
premises
BIJELJINA Business Jovana Dučića 3 67,00
premises
TREBINJE Business Dušanova 21 96,00
premises
PALE Business Dobrosava Jevđenića 155,00
premises
JAHORINA Business Trgovska 4 25,00
premises
SARAJEVO Business Vladimira Perića 10 110,00
premises
VLASENICA Business Ilije Biračanina bb 120,00
permises
REVIEW OF BUSINESS PREMISES TAKEN INTO LEASE BY KOMERCIJALNA BANKA AD BANJA
LUKA

FACILITIES OWNED BY KOMERCIJALNA BANKA AD BUDVA

Type (purpose) of Surface of the Property
Place Address
the afcility facility (m2) value
Budva Business premises PC Podkošljun bb 265,00 -

29
REVIEW OF BUSINESS PREMISES TAKEN INTO LEASE BY KOMERCIJALNA BANKA AD BEOGRAD
Type (purpose) of Surface of the Property
Place Address
the premises facility (m2) value
BEOGRAD Business premises Trg Nikole Pašića 2-4 257,00 -
BEOGRAD-VINČA Business premises Mike Alasa bb 34,32

BEOGRAD Business premises Bul. Kralja Aleksandra 191- 70,00

193
BEOGRAD Business premises Bul. Lenjina 10d/VP 70,00

BEOGRAD Business premises Svetog Save 16-18 206,00 I 480,00

BEOGRAD Business premises Despota Stefana (29. 158,74

novembra) 24
BEOGRAD Business premises Bul. JNA 152 1.000,00

BEOGRAD Business premises Trg Nikole Pašića 7 363,00

OBRENOVAC Business premises Vlade Aksentijevića 10 33,00 i 26,00

OBRENOVAC Business premises Vuka Karadžića 56 246,72

BEOGRAD Business premises Ustanička 63 219,00

BEOGRAD Business premises Ul.Vojvode Stepe 61,00

BEOGRAD Business premises Ul. Ruzveltova br. 41 34,00

BEOGRAD Business premises Bul. Kralja Aleksandra br. 394,00

251
BEOGRAD Business premises Ul. Andre Nikolića br. 3 65,00

BEOGRAD Business premises Ul. Jurija Gagarina br. 221 97,00

BEOGRAD Business premises Ul. Ustanička br. 194 83,80

BEOGRAD Business premises Ul. prvomajska br. 8 105,85

BEOGRAD Business premises Ul. Ljubinke Bobić br. 28 107,63

BEOGRAD- Zemun Business premises Ul. Rajačićeva br. 2 400,98

BEOGRAD - JAT Business premises Bul. umetnosti br. 16a 179,00

BEOGRAD Business premises Ul. Kneza Višeslava br. 118 278,49

BEOGRAD Business premises Ul. Kralja Milutina br. 53 92,00

BEOGRAD - Žarkovo Business premises Ul. Titova br. 2 87,60

BEOGRAD Business premises Ul. Bore Markovića br. 27 70,50

BEOGRAD-Aerodrom Business premises 11180 Beograd 59 Ground floor and

the counter
BEOGRAD – N.Bgd Business premises Bul. Lenjina br. 10D 54,38
43,04
BEOGRAD - Krnjača Business premises Ul. Zrenjaninski put br. 83a 66,49

BEOGRAD Business premises Ul. Cvijićeva br. 93a 137,56

30
BEOGRAD Business premises Ul. Marijane Gregoran br. 56 94,54

BEOGRAD - TC Business premises Ul. Paunova br. 24 92,80

Banjica
BEOGRAD - Zemun Business premises Ul. partizanskih baza br. 1 330,00

BEOGRAD - Zemun Business premises Ul. partizanskih baza br. 15 330,00

BEOGRAD - Zemun Business premises Dobanovački put br. 58 29,72

and parking
BEOGRAD Business premises Ul. Makedonska br. 4 52,00

BEOGRAD Business premises Ul. Petra Martinovića br. 37 103,00

BEOGRAD Business premises Bul. Kralja Aleksandra br. 157,80

328
BEOGRAD Business premises Ul. Kralja Petra I br. 21 640,64

BEOGRAD Business premises Ul. Paunova br. 65/L2 636,04

BEOGRAD - Pad. Business premises Ul. Industrijsko naselje bb 106,25

Skela
BEOGRAD Business premises Šumadijski trg br. 2 50,00

BEOGRAD - N. Bgd. Business premises Bul. AVNOJ-a br. 45a 273,65

BEOGRAD Business premises Ul. Kneza Miloša br. 4 830,00

BEOGRAD Business premises Skladište RK Beograd 100,00

BEOGRAD Business premises Tošin bunar 159 427,00

GROCKA Business premises Vučka Milićevića 7a 72,58

BEOGRAD - B. Brdo Business premises Kozačinskog br. 2 134,14

CREPAJA Business premises Trg oslobođenja br. 5 48,05

KOVAČICA Business premises Ul. Masarikova br. 65 105,11

BARAJEVO Business premises (Ul. Svetosavska br. 20) 189,62

Ul. M. Vukovića 2
MLADENOVAC Business premises Ul. Janka Katića br. 10 86,10

STARA PAZOVA Business premises Ul. Svetosavska br. 2 130,00

UMKA Business premises Ul. 13. oktobar br. 37 60,00

LAZAREVAC Business premises Ul. Karađorđeva br. 28 72,00

PANČEVO Business premises Ul. Nikole Tesle br. 9 381,02

SOPOT Business premises Ul. Kosmajska br. 14 180,00

BEOGRAD Business premises Ul. Vojvode Šupljikca 51 175,00

NOVI BEOGRAD Business premises Ul. Goce Delčeva 36 163,00

BATAJNICA Business premises Majora Zorana 145,00

Radosavljevića 256
PETLOVO BRDO Business premises Serdar Janka Vukotića br.1a 105,00

BANJICA Business premises Paunova br. 9 70,00

BEOGRAD Business premises Cara Dušana 62-64 207,78

KRUŠEVAC Business premises Trg oktobarske revolucije br. 21,50

1

31
STOPANJA Business premises Stopanja 32,00

NIŠ Business premises Ul. Nikole Pašića br. 41 237,00

NIŠ Business premises Ul. Nikole Pašića br. 24 10,50

NIŠ Business premises Ul. Vojvode Tankosića br. 15 14,18

LESKOVAC Business premises Bul. Oslobođenja br. 92 372,52

MEDVEĐA Business premises (Ul. Jablanička br. 61) 129,50

Maršala Tita 45
LEBANE Business premises Ul. Cara Dušana br. 12 64,09

BLACE Business premises Ul. Karađorđeva br. 197 100,00

PIROT Business premises Ul. Srpskih vladara br. 82 10,00

SOKOBANJA Business premises Ul. A. Markišića br. 11 61,00

MEROŠINA Business premises Ul. Cara Lazara br. 29 31,50

ŽITORAĐA Business premises Ul. Vojvode Mišića br 1/3 29,50

BABUŠNICA Business premises Ul. Živojina Nikolića Brke br. 58,00

5
VALJEVO Business premises Gradski trg bb 168,80
MIONICA Ul. Tike Marića br. 15 142,00
OSEČINA Ul. Karađorđeva br. 141 68,00
LAJKOVAC Business premises (Ul. Vojvode Mišića br. 84) 125,37
Ul. vojvode Mišića 100
LJIG Business premises Ul. Vojvode Mišića bb 139,00

UB Business premises Ul. Karađorđeva br. 71 260,00

OSEČINA Business premises Ul. Karađorđeva br.123 108,00

KRAGUJEVAC Business premises Ul. Kneza Miloša br. 3 169,63

KRAGUJEVAC Business premises Ul.Kralja Petra I br. 25 83,82

KRAGUJEVAC Business premises Ul. 19. oktobar br. 2

ARANĐELOVAC Business premises Ul. Kneza Miloša br. 212 60,00

TOPOLA Business premises Bul. Kralja Aleksandra br. 26 111,20

BATOČINA Business premises Ul. Kralja Petra br. 64 53,00

LAPOVO Business premises Ul. Kralja Petra br. 4 40,00

ČAČAK Business premises Ul. Kuželjeva br. 20 74,00

ČAČAK Business premises Ul. Železnička bb 40,59

ČAČAK Business premises Ul. Železnička bb 19,40

GORNJI MILANOVAC Business premises Ul. Vojvode Milana br. 2 144,00

LUČANI Business premises Ul. Jugoslovenske armije br. 87,00+ 7,5

6 of the
windshield
space
MRČAJEVCI Business premises Ul. Radomira Novakovića bb 40,00

IVANJICA Business premises Ul. Javorska br. 1 514,00

ČAČAK Business premises Ul. Župana Stracimira br. 23 330,92

GORNJI MILANOVAC Business premises Ul. Vojvode Milana br. 18 128,00

32
VLADIČIN HAN Business premises Ul. Nikole Tesle bb 105,00

VLADIČIN HAN Business premises Ul. Svetosavska br. 35 190,00

SURDULICA Business premises Ul. 5. septembra bb 122,15

PREŠEVO Business premises Ul. Save Kovačevića br. 2 60,00

BOSILEGRAD Business premises Ul. Georgija Dimitrova br. 74 87,13

TRGOVIŠTE Business premises Ul. M. Tita br. 1 80,00

BOR Business premises Zeleni bulevar br. 4 90,00

BOLJEVAC Business premises (Ul. Kralja Aleksandra br. 41,00

17/2)
Ul. kralja Aleksandra 13
KNJAŽEVAC Business premises Ul. Branka Radičevića br. 2 105,00

KNJAŽEVAC Business premises Ul. Branka Radičevića br. 2 21,00

KLADOVO Business premises Ul. Kralja Aleksandra br. 42 59,40

KLADOVO Business premises Ul. 22. septembra 9 160,38

MAJDANPEK Business premises Ul. 27. marta br. 2 140,00

DONJI MILANOVAC Business premises Ul. Kralja Petra I bb 50,00

BOLJEVAC Business premises Kralja Aleksandra No. 20/1 140,00

ZAJEČAR Business premises Nikole Pašića bb parking space

BOR Business premises Đorđa Vajferta 5 150,00

NOVI SAD Business premises Trg slobode No. 4 380,39

(prior to 01.03.
07 =394,22)
NOVI SAD Business premises Bul. Mihajla Pupina No. 6 383,76

BEČEJ Business premises Moše Pijade No. 2 100,00

BEČEJ Business premises Moše Pijade No. 2 100,00

FUTOG Business premises Ul. Cara Lazara br. 7 80,00

( Cara Lazara 28)
INĐIJA Business premises Vojvode Stepe br. 8 100,00

BAČ Business premises Trg M. Tita br. 2 87,50

NOVI SAD Business premises Bul. Mihajla Pupina br. 6 80

NOVI SAD Business premises Ložionička 10-12 122,81

NOVI PAZAR Business premises Šabana Koče br. 71 73,93

SJENICA Business premises Kej bb 71,00

42,00
TUTIN Business premises Ferhadija br. 13 102,00

SUBOTICA Business premises Korzo br. 10 933,59

KELEBIJA Business premises Border line

SUBOTICA Business premises Korzo br. 5 116,00

KANJIŽA Business premises (Glavna ulica br. 16) 96,50

M. Tita 16
BAČKA TOPOLA Business premises Maršala Tita br. 57 103,00

33
HORGOŠ Business premises Border line ( loaction no. 46 10,07
)
SENTA Business premises Glavni trg br. 8 100,00

BAČKA TOPOLA Business premises Rade Končara br. 55 a 138,72

SMEDEREVO Business premises Karađorđeva br. 28 72,98

SMEDEREVO Business premises Šalinačka bb 27,50

KOVIN Business premises JNA br. 26 119,70

GROCKA Business premises Vučka Milićevića br. 7a 72,58

LEŠTANE Business premises Branislava Nušića 1 b 92,35

LOZNICA Business premises Gimnazijska br. 1 292,00

LOZNICA Business premises Kneza Miloša bb 100,00

BANJA KOVILJAČA Business premises Maršala Tita bb 96,00

BANJA KOVILJAČA Business premises Specijalna bolnica za rehab. 10,21

Park br. 4
KRUPANJ Business premises Mačkov kamen br. 1 81,68

JAGODINA Business premises Kneginje Milice 24 190,00

JAGODINA Business premises Ul. Kneginje Milice 24 190,00

JAGODINA Business premises Ul. Kneginje Milice br. 15 391,81

SVILAJNAC Business premises Ul. Ustanička br. 1 446,00

DESPOTOVAC Business premises (Ul. Kralja Milana br. 14) 200,00

Petra Drapšina bb
ĆUPRIJA Business premises Ul. M. Novakovića bb 176,66

VELIKA PLANA Business premises Ul. Miloša Velikog br. 61 150,00

SMEDEREVSKA Business premises Ul. I srpskog ustanka br. 53 173,29

PALANKA
REKOVAC Business premises Ul. Kralja Petra I br. 44 65,50

KRNJEVO Business premises Bul. oslobođenja br. 1b 7,00

VELIKA PLANA Business premises Kralja Petra I 44 9,71

PRIJEPOLJE Business premises (Ul. Stara Centrala bb) 76,45

Centrala C-2
KRALJEVO Business premises Ul. Miloša Velikog br. 31 116,98

KRALJEVO Business premises Ul. Srpskih ratnika bb 964,00

VRNJAČKA BANJA Business premises Ul. Nemanjina br. 11 90,00

UŠĆE Business premises Ul. 29. novembra bb 110,15

UŽICE Business premises Ul. Dimitrija Tucovića br. 220,00

151
UŽICE Business premises Ul. Petra Ćelovića br. 4 243,81

POŽEGA Business premises Ul. Nikole Pašića br. 2 257,64

BAJINA BAŠTA Business premises Ul. Svetosavska br. 30 52,89

55,77
ZLATIBOR Business premises TC objekat "Brvnara" 55,00

ARILJE Business premises Ul. Sv. Ahilija br. 13 126,00

34
KOSJERIĆ Business premises Ul. Karađorđeva br. 43 85,00

ARILJE Business premises Ul. Svetog Ahilija 20 120,00

ŠID Business premises Ul. Karađorđeva br. 7 91,25

KIKINDA Business premises Ul. Kralja Petra I br. 39 126,91

KIKINDA Business premises Ul. Generala Drapšina br. 30 102,00

KIKINDA Business premises Kralja Petra I 39 126,91

SOMBOR Business premises Ul. Staparski put br. 14 229,00

APATIN Business premises Ul. Srpskih vladara br. 2 80,50

ODŽACI Business premises Ul. Knez Mihailova br. 37 100,00

CRVENKA Business premises (Ul. Moše Pijade br. 47) 84,00

Ul. Moše Pijade 30
CRVENKA Business premises Ul. Moše Pijade br. 61 125,00

KULA Business premises Ul. Lenjinova br. 14 101,40

KULA Business premises Ul. Lenjinova br. 14 101,4

BELA CRKVA Business premises Ul. Proleterska br. 4 147,00

NOVI BEČEJ Business premises Ul. Žarka Zrenjanina br. 4 56,00

SEČANJ Business premises Ul. Vožda Karađorđa bb 64,00

ŽITIŠTE Business premises Ul. Cara Dušana br. 15 140,00

ZRENJANIN Business premises Ive Lole Ribara br. 1 38,00

KOSOVSKA Business premises Ul. Kralja Petra Prvog br. 33 102,00

MITROVICA
ŠTRPCE-BREZOVICA Business premises Hotel NARCIS 30,00

RANILUG Business premises MZ Ranilug, residence Bare 32,00

GRAČANICA Business premises Ul. Glavna bb 150,00

LEPOSAVIĆ Business premises Ul. 29. novembra br. 42a 52,60

ZUBIN POTOK Business premises Ul. Vojvode Rada br. 10 75,00

ŠILOVO-GNJILANE Business premises - 67,00

DRAGAŠ Business premises - 37,50

FACILITIES KOMERCIJALNA BANKA AD BEOGRAD HAS GIVEN INTO LEASE

Property
Type (purpose) of Surface of the value
Place Address
the faciliy facility (m2) (present in
000)
Beograd Business premises Makedonska 29 15.885,71 *
Beograd Business premises Toše Jovanovića 7 35,56

Novi Pazar Business premises Stevana Nemanje bb 27,28

Požarevac Business premises Moše Pijade 2 18,50

Požarevac Business premises Moše Pijade 2 56,00

35
Požarevac Business premises Moše Piajde 2 40,00

Požarevac Business premises Moše Pijade 2 364,94

Požarevac Business premises Moše Piajde 2 58,34

Kruševac Business premises JNA 8 55,72

2.2.1.2. Value of facilities and equipment

2.2.2. Share in the capital of other legal entities
2.2.2.1.
Name and head Share of capital Share of the issuer in the
Issuer’s voting right in the legal
office of the legal investment in the shareholders capital of
entity, in %
entity issuer assets the legal entity
KOMERCIJALNA -
BANKA AD BUDVA 100% 100%
AFFILIATE
KOMERCIJALNA -
BANKA AD Banja 99,99% 99,99%
Luka
IMK 14. OKTOBAR - 11,13% 11,13%
AD Kruševac
EUROAXIS BANKA - 10,37% 10,37%
MOSKVA

Information o the issuer’s investments, which realize the issuer’s share in the equity of the other legal person
in the amount of 10% and more, are presented in the upper chart. If the issuer’s position is one of the parent
company, the following information is provided in the chart, relative to subsidiaries:
- Business activity;
- Management members;
- Development policy and strategy;
- Total profit/loss relative to the previous three years;
- Total capital relative to the previous three years;
- Total assets relative to the previous three years.

Komercijalna Banka has had the status of the parent bank of Komercijalna Banka a.d. Budva and
Komercijalna Banka a.d. Banja Luka affiliations since December 31, 2006.
Komercijalna Banka a.d. Banja Luka affiliation, Reg.No.-02373262, Podkošljun bb St,, Budva,
Montenegro. Komercijalna Banka a.d. Beograd owns 100% share in the shareholders equity of
Komercijalna Banka a.d. Budva affiliation.
The Bank’s affiliation in Budva, as the autonomous unit, has initiated its business operations in
March 2003, upon obtaining the permission of the Central Bank of Montenegro. The Affiliation’s
development policy and strategy, established by the Affiliation’s General Meeting of
Shareholders, have been confirmed by the Central Bank of Montenegro. The Board of Directors is
composed of seven members:
1. Goran Milićević, Chairman
2. Milijana Gregović, Member
3. Gordana Zorić, Member
4. Dr Božo Mihailović, Member
5. Zlatan Živković, Member

36
 6. Dragan Marović, Member
7. Dragana Stojkov, Member.
Komercijalna banka a.d, Banja Luka, Single Registration No. -4950128530005, Veselina Masleše
St. 6, Banja Luka. Komercijalna Banka ad Beograd owns 99,99% share in the shareholders
equity of Komercijalna Banka a.d. Banja Luka.
Komercijalna Banka a.d. Banja Luka has initiated its business operations at the end of 2006,
upon obtaining the permission from the competent bodies of the Republika Srpska and
Federation of Bosnia and Herzegovina. Its strategy and business policy are determined by the
Bank’s shareholders in accordance with the legal regulations of the Federation of Bosnia and
Herzegovina. The Management Structure of Komercijalna Banka a.d. Banja Luka is composed of
the following persons:
Srđan Šuput-Director,
Boško Mekinjić-Executive Director,
Đuro Beronja-Executive Director,
The Supervisory Board is composed by the following persons:
1. Dragan Santovac, President
2. Olivera Trikić, Member
3. Savo Petrović, Member
4. Živojin Savić, Member
5. Slobodan Vuković, Member.

Consolidated financial information (IN 000 DIN)

Serial 2004 2005 2006
No.
1 PROFIT/LOSS BEFORE 323.043 558.023 893.466
TAX
2 TOTAL CAPITAL 6.303.355 9.030.491 15.975.297
3 TOTAL ASSETS 53.061.403 76.675.347 107.307.464

2.2.3. Patents, concessions, required licences

2.2.3.1. State short information on the terms and conditions and the expected duration of the approved
concession, patents, more significant commercial agreements, franchise agreements, special licences required
for the export or import of goods or the performance of the business activity etc;
-

2.2.4. Major Capital Investments

2.2.4.1. Description of the investments and withdrawal of the funds invested in beforehand stated forms of
assets in the previous three years and description of the manner in which each of these investments were
financed; description of the other important investments and withdrawal of the funds invested and the
manner in which these investments were financed

DESCRIPTION 2004 2005 2006

1. FIXED ASSETS 2.017.714 3.529.170 3.897.056

37
 1.1. Intangible Investments 146.452 90.115 21.333
1.2. Construction Facilities 1.355.142 2.824.591 3.124.424
1.3. Equipment 422.082 426.857 708.390
1.4. Other 94.038 187.607 42.909
2. INVESTMENTS TO BANKS 699.613 727.255 1.762.116
AND COMPANIES
TOTAL (1+2) 2.717.327 4.256.425 5.659.172
NOTE. Real-estate investments on December 31, 2006 amount to 3.092.489 thousands dinars.

2.2.5. Rights of Lien

2.2.5.1. The basic information on the issuer’s property upon which the right of lien has been established: pledge
type, value of the pledged collateral, pledge duration, name of the pledgee;
Value of the
pledged collateral Value of the pledged
Name of the
Pledge Type account receivable (in Pledge Duration
(in thousand pledgee
thousands din.)
dinars)
- - - - -

The Bank has no mortgage on its real assets.

2.2.6. Legal and other proceedings

2.2.6.1. Data are provided only with respect to the most important proceedings pursued before the court or other
authority: number of proceedings in which the issuer represents the accused party and the total value of all
disputes; proceedings relative to the right of industrial property and misuse of the monopoly position are listed
separately;
The Bank is engaged in 20 major proceedings before the Court representing the Appellant, and the
total value of the respective disputes amounts to approximately 3 billion dinars.
The Bank is engaged in 5 major proceedings before the Court representing the Repondent, with the
total value that amounts to 900 million dinars.
The Bank executed required legal provisioning of funds with respect to all proceedings it is engaged
in.

2.2.7. Total amount of the issuer’s liabilities due on the request application date
-

2.2.7.1. Amount of the issuer’s liabilities on the basis of the banking loans
On September 30, 2007 the Bank had the following liabilities on the basis of the loans received
from the other commercial banks:
The account 57600-Long-term commodity loan from foreign banks -9.114.879,28 dinars.
The account 57601-Long-term investment loan from foreign banks -2.912.173,70 dinars.

38
The account 57602-Long-term banking credit facilities from foreign banks -93.646.962,50
dinars.
The account 57605-Long-Term commodity loans from foreign banks with the tenor of over four
years -202.455.037,01 dinars.

2.2.7.2. Amount of the issuer’s liabilities on the basis of debt securities

-

2.2.7.3. Other issuer’s liabilities

-

2.2.8. Total amount of the issuer’s liabilities unsettled in due time, until the date of the request
application
The Bank has no due unsettled liabilities on the date of the Prospectus composition.

2.2.8.1. The amount of the issuer’s liabilities based on the banking loans
-

2.2.8.2. The amount of the issuers liabilities based on debt securities

-

2.2.8.3. Other Issuer’s liabilities

-

2.2.9. Employees
2.2.9.1. The total number of persons employed with the issuer and the number of employed persons within
the scope of the specific level of qualification, and the average number of the persons employed in the course
of previous three years

Qualifications 2004 2005 2006

OTHERS 172 145 132
High School Graduate 1.535 1470 1556
College Graduate 473 483 565
University Graduate 577 587 715
Master of Science Degree 12 12 15
Doctor of Science Degree 2 2 1
Total 2.771 2.699 2.984

39
Average number of persons 2.818
employed in the previous
three years

2.2.9.2. Total value of commitments to employees

-

2.3. FINANCIAL INFORMATION

2.3.1. Data from non-consolidated financial statements of the issuer relative to the previous
three years

2.3.1.1. Balance sheet for previous three years

in 000 dinars
BALANCE SHEET AOP 31/12/2004
A S S E T S:
Cash and cash equivalents 001 8.847.784
Deposits with the Central Bank and securities that can be
002 1.739.836
refinanced with the Central Banks
Interest and fees /commission receivables 003 231.957
Loans to banks 004 10.942.531
Loans to clients 005 26.558.767
Securities and other trading placements 006 47.772
Investments in securities held until maturity 007 144.883
Share in capital and other securities available for sale 008 699.613
Intangible investments 009 146.452
Fixed assets 010 1.871.263
Other assets and prepaid expenses 011 915.991
Delayed tax funds 012 75.260
Loss exceeding the amount of capital 013 -
TOTAL ASSETS (from 001 to 013) 014 52.222.109
LIABILITIES

Liabilities to banks 101 3.628.152

Liabilities to clients 102 40.294.172
Interest and Fees/Commissions Liabilities 103 28.763
Liabilities based on securities 104 -
Profit liabilities 105 319
Operational liabilities 106 377.030
Delayed negative goodwill 107 -
Provisioning 108 960.652
Other liabilities and accrued costs 109 647.424

40
Delayed tax liabilities 110 -
TOTAL LIABILITIES (101 to 110) 111 45.936.512
CAPITAL
SHAREHOLDERS AND OTHER CAPITAL 112 5.372.764
Reserves 113 474.449
Accumulated profit 114 438.384
Loss up to the amount of capital 115 -
TOTAL CAPITAL (112+113+114-115) 116 6.285.597
TOTAL LIABILITIES (111+116) 117 52.222.109
OFF-BALANCE POSITIONS (from 119 to 121) 118 23.757.541
Operations on behalf and in favour of the third persons 119 844.654
Guarantees, sureties, asset for securing of liabilities and assumed
irreversible liabilities 120 10.061.240
Other off-balance positions 121 12.851.647

Basic balance indicators for 2005 and 2006 adjusted to the amended IAS and newly adopted
IFRS

In 000 dinars
BALANCE SHEET AOP 31/12/2005 31/12/2006
ASSETS
Cash and cash equivalents 001 10.341.929 8.026.663
Deposits with the Central Bank and securities that can be
002 17.695.512 33.371.741
refinanced with the Central Banks
Interest and fees /commission receivables 003 424.858 483.487
Loans to banks 004 331.498 149.508
Loans to clients 005 36.591.252 49.927.604
Securities and other trading placements 006 687.144 328.482
Investments in securities held until maturity 007 22.689 139.160
Share in capital and other securities available for sale 008 727.255 1.762.116
Share in equity of other related legal persons declared by
009 - -
capital method
Fixed assets intended for sale and suspended operations
010 532 3.525
assets
Overpaid income tax Receivables 011 15.752 26.746
Goodwill 012 - -
Intangible investments 013 - 21.333
Investment real-estate 014 - 3.092.489
Fixed assets 015 3.439.055 3.875.723
Other assets and prepaid expenses 016 4.223.616 643.530
Delayed tax funds 017 298.261 366.412
Loss exceeding the amount of capital 018 - -
TOTAL ASSETS ( from 001 to 018) 019 74.799.353 102.218.519

LIABILITIES

41
Liabilities to domestic banks 101 2.509.884 3.829.558
Liabilities to clients 102 60.271.629 79.327.802
Interest and Fees/Commissions Liabilities 103 35.594 48.722
Securities based liabilities on 104 - -
Profit liabilities 105 851 4.284
Current income tax based liabilities 106 - -
Funds intended for sale and suspended operations assets
107 - -
based liabilities
Other operational liabilities 108 843.511 648.775
Provisioning 109 1.185.130 1.147.830
Other liabilities and accrued costs 110 960.845 1.152.769
Deferred tax liabilities 111 49.940 64.226
TOTAL LIABILITIES (101 to 111) 112 65.857.384 86.223.966
CAPITAL
113 6.745.000 12.662.890
SHAREHOLDER AND OTHER CAPITAL
Reserves 114 1.450.785 1.962.557
Accumulated profit 115 746.184 1.369.106
Accumulated loss 116 - -
Positive cumulative differences based on the foreign currency
117 - -
adjustment relative to foreign operations
Negative cumulative differences based on the foreign
118 - -
currency adjustment relative to foreign operations
TOTAL CAPITAL (113+114+115-116+117-118) 119 8.941.969 15.994.553
Minority owners stake 120 - -
TOTAL LIABILITIES (112+119) 121 74.799.353 102.218.519
OFF-BALANCE POSITIONS (from 123 to 125) 122 31.942.292 50.732.993
Operations on behalf and in favour of the third persons 123 2.430.050 3.934.303
Guarantees, sureties, asset for security of liabilities and
124 16.617.098 20.194.905
assumed irreversible liabilities
Other off-balance positions 125 12.895.144 26.603.785

2.3.1.2. Income statement for the previous three years;

In 000 dinars
INCOME STATEMENT AOP 31/12/2004
INCOME AND EXPENSE FROM REGULAR OPERATIONS
Interest income 201 3.054.730
Interest expense 202 1.027.883
Interest-based profit (201-202) 203 2.026.847
Interest-based loss (202-201) 204 -
Fees and commission income 205 2.013.116
Fees and commission expense 206 284.283
Fees and commission-based profit (205-206) 207 1.728.83

42
 Fees and commission-based loss (206-205) 208 -
Securities sale based net profit 209 407
Securities sale based net loss 210 -
Exchange rate difference net income 211 1.949.351
Exchange difference net expenses 212 -
dividends and stake income 213 56.355
Other operational income 214 1.364.384
Expenses of indirect write-offs of placements and provisioning 215 3.140.503

Other operational expenses 216 3.757.149

Change in value of assets and liabilities income 217 784
Change in value of assets and liabilities expenses 218 733
REGULAR OPERATIONS PROFIT (203-204+207-208+209-
210+211-212+213+214-215-216+217-218) 219 228.576
REGULAR OPERATIONS LOSS (204-203+208-207+210-
209+212-211-213-214+215+216-217+218) 220 -
EXTRAORIDNARY INCOME AND EXPENSES
Extraordinary income 221 111.384
Extraordinary expenses 222 35.859
NET EXTRAORDINARY INCOME (221-222) 223 75.525
NET EXTRAORDINRY EXPENSES (222-221) 224 -
PROFIT BEFORE TAX (219-220+223-224) 225 304.101
LOSS BEFORE TAX (220+224-219-223) 226 -
Income tax 227 -
PROFIT AFTER TAX (225-227) 228 304.101
LOSS AFTER TAX (226+227) ILI (227-225) 229 -

Basic balance sheet indicators for 2005 and 2006 adjusted to the amended IAC MRS and newly
adopted IFRS

IN 000 dinars
BALANCE SHEET AOP 31/12/2005 31/12/2006
INCOME AND EXPENSES FROM REGULAR OPERATIONS d
201 5.302.228 6.548.498
Interest income
Interest expense 202 1.850.660 2.059.774
Interest-based profit (201-202) 203 3.451.568 4.488.724
Interest-based loss (202-201) 204 - -
Fees and commission income 205 2.610.575 2.632.557
Fees and commission expense 206 313.125 260.944
Fees and commission-based profit (205-206) 207 2.297.450 2.371.613
Fees and commission-based loss (206-205) 208 - -
Securities sale and stake based net profit 209 194.996 33.453
Securities sale and stake based net loss 210 - -

43
Exchange rate difference net income 211 - 1.985.851
Exchange rate difference net expenses 212 450.223 -
Net income based on capital method made investments to related
213 - -
legal person
Net expenses based on capital method made investments to related
214 - -
legal persons
Dividend and stake income 215 21.774 76.107
Other operational income 216 854.566 3.351.956
indirect write-offs of placements and provisioning expenses 217 3.367.338 5.256.110
Other operational expenses 218 4.065.530 5.609.717
Change in value of assets and liabilities income 219 2.561.679 1.577.197
Change in value of assets and liabilities expenses 220 985.632 2.158.934
REGULAR OPERATIONS PROFIT (203-204+207-208+209-
221 513.310 860.140
210+211-212+213-214+215+216-217-218+219-220)
REGULAR OPERATIONS LOSS (204-203+208-207+210-
222 - -
209+212-211+214-213-215-216+217+218-219+220)
SUSPENDING OPERATIONS PROFIT 223 - -
SUSPENDED OPERATIONS LOSS 224 - -
PROFIT BEFORETAX (221-222+223-224) 225 513.310 860.140
LOSS BEFORE TAX (222-221+224-223) 226 - -
Income tax 227 - -
Profit from created delayed tax funds and reduction of delayed tax
228 223.001 68.151
liabilities
Loss from the reduction of delayed tax funds and creation of
229 49.940 14.287
delayed tax liabilities
PROFIT (225-226-227+228-229) 230 686.371 914.004
LOSS (226-225+227-228+229) 231 - -
NET PROFIT ACCRUED TO MINORITY INVESTORS 232 - -
NET LOSS ACCRUED TO OWNERS OF THE PARENT LEGAL PERSON 233
PROFIT PER SHARE 234
Basic profit per share 235 1 1
Reduced profit per share 236

2.3.1.3. Cash flow statement for the previous three years

In 000 dinars
POSITIONS AOP 31.12.2004
A. CASH FLOWS FROM BUSINESS ACTIVITIES 301
I. Cash inflows from business activities 5.643.782
302
1.Interest inflows 3.084.021
303
2. Fees and commission inflows 2.020.495
3. Inflows based on the other operational income 304 433.783

44
4. Dividends and stake inflows 305 56.355
306
5. Extraordinary income based inflows 49.128
II. Cash outflows from business activities ( from 308 to 313) 307 5.550.922
6. Interest based outflows 308 982.590
309
7. Fees and commission based outflows 284.805
8. Gross earnings, reimbursement of earnings and other personal 310
expenses based outflows 1.889.657
9. Tax, contributions and other taxes on the account of income based 311
Outflows 441.211
10. Other operational costs based outflows 312 1.952.659
11. Extraordinary expenses based outflows 313 -
III. Net cash inflow from business activities before increase or 314
decrease in loans and deposits (301-307) 92.860
IV. Net cash outflow from business activities before increase or 315
decrease in loans and deposits (307-301) -
V. Decrease in loans and increase in placed deposits 316 7.078.238
12. Decrease of loans and placements to the banks and other financial 317
organisations -
13. Decrease of loans and placements to clients 318 -
14. Decrease of securities and other placements in trade and short-term 319
securities held till maturity -
15. Increase of deposits from the banks and other financial organisations 320 993.034
16. Increase of clients’ deposits 321 6.085.204
VI. Increase of placements and decrease of placed deposits 322
( from 323 to 327) 5.011.007
17. Increase of loans and placements to banks and other financial 323
organisations 1.520.279
324
18. Increase of loans and placements of clients 3.443.376
19. Increase of securities and other placements in trade and short-term 325
securities held till maturity 47.352
20. Decrease of deposits from banks and other financial organisations 326 -
21. Decrease of clients’ deposits 327 -
VII. Operational net cash inflow before income tax (314-315+316- 328
322) 2.160.091
VIII. Operational net cash outflow before income tax (314- 329
315+316-322) -
22. Income tax payment 330 -
23. Dividend payment 331 65.607
IX. Operational net cash inflow (328-330-331) 332 2.094.484
X. Operational net cash outflow (328-329-330-331) 333 -
B. INVESTMENT ACTIVITIES CASH FLOWS 334
I. Investment activities cash inflows ( from 335 to 337) 16.980
1. Long-term investments in securities inflows 335 -

45
 2. Inflows from sale of shares and stakes 336 -
3. Inflows from sale of intangible investments and fixed assets 337 16.980
II. Investment activities cash outflows (339 to 341) 338 830.165
339
4. Investments in long-term securities based outflows 113.412
340
5. Purchase of shares and stakes based outflows 294.332
341
6. Purchase of intangible investments and fixed assets based outflows 422.421

III. Investment activities net cash inflow (334-338) 342 -

IV. Investment activities net cash outflow (338-334) 343 813.185

V. FINANCING ACTIVITIES CASH FLOWS 344
I. financing activities cash inflow (from 345 to 348) 1.170.274
345
1. Capital increase based inflows 336.104

2. Long term loans and subordinated liabilities based inflows 346 834.170

3. Disbursed short-term loans based net inflows 347 -

4. Securities based Net inflows 348 -

II. financing activities cash outflows ( from 350 to 353) 349 971.389

5. Own shares purchase based Outflows 350 -

6. Long-term loans and subordinated liabilities repayment based outflows 351 -

7. Disbursed short-term loans based net outflows 352 971.389

8. Securities based Net outflows 353 -

III. Financing activities net cash inflow (344-349) 354 198.885

IV. Financing activities Net cash outflow (349-344) 355 -

G. SUM OF NET CASH INFLOWS (301+316+334+344) 356 13.909.274

D. SUM OF NET CASH OUTFLOWS (307+322+330+331+338+349) 357 12.429.090

Đ. NET CASH INCREASE (356-357) 358 1.480.184

E. NET CASH DECREASE (357-356) 359 -

Ž. CASH AT THE BEGINNING OF THE YEAR 360 5.418.249

Z. POSITIVE EXCHANGE RATE DIFFERENCES 361 8.392.414

I. NEGATIVE EXCHANGE RATE DIFFERENCES 362 6.443.063

J. CASH AT THE END OF PERIOD 363 8.847.784

Cash flow statements for 2005 and 2006 adjusted to amended IAS and newly adopted IFRS

In 000 dinars
1 AOP 31/12/2005 31/12/2006.
A. OPERATIONAL CASH FLOWS
I Operational cash inflows (from 302 to 305) 301 7.714.649 9.400.560

46
 1.Interest inflows 302 4.832.663 6.170.239
2. Fees and commission inflows 303 2.567.052 2.902.072
3. Other operational income based inflows 304 293.152 252.142
4. Dividends and stake inflows 305 21.782 76.107
II Operational cash outflows ( from 307 to 311) 306 5.772.507 7.512.405
5. Interest based outflows 307 1.646.447 1.879.075
6. Fees and commission based outflows 308 312.971 260.884
7. Gross earnings, reimbursement of earnings and other
309 1.771.989 2.567.244
personal expenses based outflows
8. Tax, contributions and other taxes on the account of
310 409.514 527.039
income based outflow
9. Other operational costs based outflow 311 1.631.586 2.278.163
Operational net cash inflow before increase or
III 312 1.942.142 1.888.155
decrease in loans and deposits (301-306)
Operational net cash outflow before increase of
IV 313 - -
decrease in loans and deposits (306-301)
Decrease of loans and increase of placed deposits
V 314 18.492.255 20.945.315
(from 315 to 319)
10. Decrease of loans and placements to banks and other
315 - -
financial organisations
11. Decrease of loans and placements to clients 316 - -
12. Decrease of securities and other placements in trade
317 - 372.864
and short-term securities held till maturity
13. Increase of deposits from banks and other financial
318 109.398 1.320.924
organisations
14. Increase of deposits from clients 319 18.382.857 19.251.527
Increase of loans and decrease of placed deposits
VI 320 19.477.921 31.671.944
(from 321 to 325)
15. Increase of loans and placements to banks and other
321 5.139.157 15.366.878
financial organisations
16. Increase of loans and placement of clients 322 13.822.443 16.305.066
17. Increase of securities and other placements in trade and
323 516.321 -
short-term securities held till maturity
18. Decrease of deposits from banks and other financial
324 - -
organisations
19. Decrease of clients’ deposits 325 - -
Operational net cash inflow before income tax (312-
VII 326 956.476 -
313+314-320)
Operational net cash outflow before income tax
VIII 327 - 8.838.474
(313+320-312-314)
20. Income tax payment 328 15.752 10.993
21. Dividend payment 329 27.025 114.179
IX Operational net cash inflow (326-327-328-329) 330 913.699 -
X Operational net cash outflow (327+328+329-326) 331 - 8.963.646
B. INVESTMENT ACTIVITIES CASH FLOWS
I investment activities Cash inflow (from 33 to 335) 332 57.585 29.843
1. Long-term investments to securities based inflows 333 7.397 -
2. Share of 1st stake sale based inflows 334 39.067 -

47
 3. Intangible investments and fixed assets sale based inflows 335 11.121 29.843
II Investment activities cash outflows (337 to 339) 336 1.074.884 1.335.017
4. Investments in long-term securities based outflows 337 - 129.954
5. Shares and stakes based inflows 338 - 722.734
6. Intangible investments and fixed assets purchase based
339 1.074.884 482.329
outflows
III investment activities net cash inflow (332-336) 340 - -
IV investment activities net cash outflow (336-332) 341 1.017.299 1.305.174
V. FINANCING ACTIVITIES CASH FLOWS
I financing activities Cash inflow (from 343 to 346) 342 2.406.751 6.082.300
1. Capital increase based Inflows 343 1.375.180 6.082.300
2. Long-term loans and subordinated liabilities based inflows 344 1.031.571 -
3. Disbursed short-term loans based net inflows 345 - -
4. Securities based net inflows 346 - -
II Financing activities cash outflows (from 348 to 351) 347 358.784 114.597
5. Own shares purchase based outflows based 348 - -
6. Long-term loans and subordinated liabilities repayment
349 - 71.900
based outflows
7. Disbursed short-term loans based net outflows 350 358.784 42.697
8. Securities based net outflows 351 - -
III Financing activities net cash inflow (342-347) 352 2.047.967 5.967.703
IV Financing activities net cash outflow (347-342) 353 - -
G. SUM OF NET CASH INFLOWS (301 + 314 + 332 + 342) 354 28.671.240 36.458.018
SUM OF NET CASH OUTFLOWS
D. 355 26.726.873 40.759.135
(306+320+328+329+336+347)
Đ. NET CASH INCREASE (354-355) 356 1.944.367 -
E. NET CASH DECREASE (355-354) 357 - 4.301.117
Ž. CASH AT THE BEGINNING OF FISCAL YEAR 358 8.847.784 10.341.929
Z. POSTIVE EXCHANGE RATE DIFFERENCIES 359 4.635.864 11.477.257
I. NEGATIVE EXCHANGE RATE DIFFERENCIES 360 5.086.086 9.491.406
CASH AT THE END OF THE ACCOUNTING PERIOD (356-
J. 361 10.341.929 8.026.663
357+358+359-360)

2.3.1.4. Statement of changes in capital relative to the previous three fiscal years (in 000 dinars)

STATEMENT OF CHANGES IN CAPITAL FOR THE PERIOD JANUARY 1 TILL DECEMBER 31 2004
Regist Reserves
Issue Purchase Revaluatio
Share ered on the Other Total
Description Premiu d own n Profit
Capital unpaid account capital capital
m shares Reserves
capital of profit
Opening statement –
2895904 - - - 1374065 377908 40443 - 4688320
previous period
Adjusted opening
statement 2895904 - - - 1374065 377908 40443 - 4688320
(01/01/2003)
Issue of shares 974733 - - - - - - - 974733
Acquisition/sale of
- - - - - - - - -
own shares

48
Increase/decrease in
value based on - - - - - - - - -
revaluation
Transfer from 804-
delayed revaluation - - - - - - 29897 - 29897
profit from 2001
Other-conversion by
1158042 - - - (1374065) 96541 (70340) 7974 (181848)
IAS
Profit/loss - - - - - - 124629 124629
Final statement –
previous period 5028679 - - - - 474449 124629 7974 5635731
(31/12/2003)
Opening statement –
5028679 - - - - 474449 124629 7974 5635731
current period
Adjusted opening
statement 5028679 - - - - 474449 124629 7974 5635731
(01/01/2004)
Issue of shares 336104 - - - - - - - 336104
Acquisition/sale of
- - - - - - - - -
own shares
Increase/decrease in
value based on - - - - - - - - -
revaluation
Tax loan for
investments to fixed - - - - - - 75260 - 75260
assets
Payments on account
- - - - - - (65606) 7 (65599)
of profit
Profit/loss - - - - - - 304101 - 304101
Final statement –
current period 5364783 - - - - 474449 438384 7981 6285597
(31/12/2004)

STATEMENT OF CHANGES IN CAPITAL FOR THE PERIOD JANUARY 1 TILL DECEMBER 31, 2005
Register Reserves
Purchase Revaluat
Share Issue ed on the Other Total
Description d own ion Profit
Capital Premium unpaid account capital capital
shares Reserves
capital of profit
Opening statement –
5028679 - - - - 474449 124629 7974 5635731
previous period
Adjusted opening
statement 5028679 - - - - 474449 124629 7974 5635731
(01/01/2004)
Issue of shares 336104 - - - - - - - 336104
Acquisition/sale of
- - - - - - - - -
own shares
Increase/decrease in
value based on - - - - - - - - -
revaluation
Tax loan for
investments to fixed - - - - - - 75260 - 75260
assets
Payments on account
- - - - - - (65606) 7 (65599)
of profit
Profit/loss - - - - - - 304101 304101
Final statement –
previous period 5364783 - - - - 474449 438384 7981 6285597
(31/12/2004)

49
Opening statement –
5364783 - - - - 474449 438384 7981 6285597
current period
Adjusted opening
statement 5364783 - - - - 474449 438384 7981 6285597
(01/01/2005)
Issue of shares 1375180 - - - - - - - 1375180
Acquisition/sale of
- - - - - - - - -
own shares
Increase/decrease in
value based on - - - - 607495 - - - 607495
revaluation
Transfer from profit
to the Bank’s - - - - - 367122 (367122) - 0
reserves
Payments on account
(4113) - - - - 1719 161612 1169 160387
of profit
Profit/loss - - - - - 513310 - 513310
Final statement –
current period 6735850 - - - 607495 843290 746184 9150 8941969
(31/12/2005)

STATEMENT OF CHANGES IN CAPITAL FOR THE PERIOD JANUARY 1 TILL DECEMBER 31 2006
Register
Revaluat
Share Other ed Issue Retained Own
Description Reserves ion Total
capital capital unpaid Premium earnings shares
Reserves
capital
Statement on
January 1st of the 5364783 7981 - - 474449 - 438384 - 6285597
previous 2005
Adjusted opening
statement on
5364783 7981 - - 474449 - 438384 - 6285597
January 1st of the
previous 2005
Total increase in the
1375180 1169 - - 368841 607495 674922 - 3027607
previous fiscal year
Total decrease in
the previous fiscal 4113 - - - - - 367122 - 371235
year
Statement on
December 31st of 6735850 9150 - - 843290 607495 746184 - 8941969
the previous 2005
Adjusted opening
statement on 6735850 9150 - - 843290 607495 746184 - 8941969
st
January 1 2006
Total increase in the
2120780 - - 3961520 350000 173892 1090534 164410 7861136
current year
Total decrease in
- - - - - 12210 467612 - 479732
the current year
Statement on
December 31st of 8856630 9150 - 3961520 1193290 769267 1369106 164410 15994553
the current 2006

50
 2.3.1.5. Important explanation of the individual positions from the financial statements are
contained in the Notes enclosed with the financial reports
-

2.3.1.6. Final Auditor’s Opinion

Deloitte
Extract from Auditor’s Report submitted before the Board of Directors and Shareholders of Komercijalna
Banka ad Beograd

„We have performed the audit of Komercijalna Banke A.D. Beograd balance sheet (hereinafter referred to as
the Bank), on December 31 2004 and 2003, and of the appropriate income statements, capital changes
statement and cash flow statements for the above stated f.a.“.
Opinion
„
According to our opinion, as of December 31 2004 and 2003 the submitted financial reports declare financial
statements of the Bank objectively and accurately according to all materially significant aspects, as well
as and the results of its business operations, changes in capital and cash flows for the respective years, in
accordance with the accounting policies declared in the Notes 2 and 3 in the enclosed financial reports“.

Without expressing any reserves with respect to the stated opinion, we draw the attention to following:
) (a) Note 25 with the enclosed financial statements, stating that the Bank is obliged to adjust the
scope of its business operations with the provisions stipulated in the Article 26 of the Law on Banks and
other Financial Organisations, i.e. to adjust the scope and structure of its risk placements with the
regulations prescribed by the National Bank of Serbia. On December 31, 2004 the Bank had placements
exceeding the prescribed indicators of the larges possible loans to related person.
) (b) Note 29 in the enclosed financial statements, stating that the Bank has engaged an independent
assessor to assess the value of the Bank’s real-estates as of December 31, 2004. According to the
assessment report dated February 25, 2005 the market value of the Bank’s real-estates was assessed in the
amount of 2.298.017 thousand dinars. The real-estates that were the subject of the assessment are
declared in the balance sheet as of December 31, 2004 within the Item of Construction Properties, i.e. the
real-estates intended for sale in the amount of 1.320.737 thousand dinars, i.e. 206.419 thousand dinars.

Belgrade, February 28, 2005

Miroslav Tončić
Authorised Auditor
Deloitte
Extract from the Report submitted before the Board of Directors and the Shareholders of Komercijalna
Banka ad Beograd

„We have performed the audit of submitted financial statements of Komercijalna Banka A.D. Beograd
(hereinafter referred to as the Bank), enclosed on pages 2 to 35, which include the balance sheet as of
December 31, 2005 and respective income statement, changes in capital statement and cash flow
statement for the fiscal year ending at that date, as well as the overview of the significant accounting
policies and notes with the financial reports“.
Opinion

„According to our opinion, the financial reports declare the financial position of Komercijalna Banka a.d.
Beograd objectively and accurately with respect to all materially significant issues, as of December 31,
2005, as well as the results of its business operations, changes in capital and cash flows for the fiscal year
ending on that date, in accordance with the accounting regulations of the Republic of Serbia, and the
accounting policies declared in the Notes 2 and 3, enclosed to the financial statements“.
Belgrade, March 10, 2006.
Miroslav Tončić
Authorised Auditor

Deloitte
Extract from the Report submitted before the Board of Directors and the Shareholders of Komercijalna

51
 Banka ad Beograd

„We have performed the audit of submitted financial statements of Komercijalna Banka A.D. Beograd
(hereinafter referred to as the Bank), comprising of the balance sheet as of December 31, 2006 and
respective income statement, changes in capital statement and cash flow statement for the fiscal year
ending at that date, as well as the overview of the significant accounting policies and notes with the
financial reports“.
Opinion
„
According to our opinion, the financial reports declare the financial position of Komercijalna Banka a.d.
Beograd objectively and accurately with respect to all materially significant issues, as of December 31,
2006, as well as the results of its business operations, changes in capital and cash flows for the fiscal year
ending on that date, in accordance with the Law and Accounting and Audit of the Republic of Serbia,
Regulations of the National Bank of Serbia ordering the field of financial reporting of banks and in
compliance with the basis of financial statements preparation declared in the Note 2 enclosed with the
financial reports“.
Belgrade, March 26, 2007
Miroslav Tončić
Authorised Auditor

2.3.2. Information from the consolidated financial statements of the Issuer relative to
the previous three years
2.3.2.1. Legal persons included in the consolidated report;
Komercijalna Banka a.d. Beograd Group is composed of:
1. Komercijalna Banka a.d. Beograd-in the capacity of the parent bank
2. Komercijalna Banka a.d. Budva- its subsidiary
3. Komercijalna Banka a.d. Banja Luka-its subsidiary.

2.3.2.2. Consolidated Balance Sheet

CONSOLIDATED BALANCE SHEET AOP 31/12/2004

ASSETS
Cash and cash equivalents 001 9.246.230
Deposits with the Central Bank and securities that can be
002 1.863.449
refinanced with the Central Banks
Interest and fees /commission receivables 003 240.795
Loans to banks 004 10.924.489
Loans to clients 005 27.213.355
Securities and other trading placements 006 47.772
Investments in securities held until maturity 007 179.987
Share in capital and other securities available for sale 008 263.073
Intangible investments 009 150.475
Fixed assets 010 1.925.062
Other assets and prepaid expenses 011 931.456
Delayed tax funds 012 75.260
Loss exceeding the amount of capital 013 -
TOTAL ASSETS (from 001 to 013) 014 53.061.403

52
LIABILITIES

Liabilities to banks 101 3.571.849

Liabilities to clients 102 41.089.965
Interest and Fees/Commissions Liabilities 103 29.318
Liabilities based on securities 104 -
Profit liabilities 105 319
Operational liabilities 106 422.155
Delayed negative goodwill 107 -
Provisioning 108 962.466
Other liabilities and accrued costs 109 681.976
Delayed tax liabilities 110 -
TOTAL LIABILITIES (101 to 110) 111 46.758.048
CAPITAL
112 5.372.764
Shareholder and other capital
Reserves 113 474.616
Accumulated profit 114 455.975
Loss up to the amount of capital 115 -
TOTAL CAPITAL (112+113+114-115) 116 6.303.355
TOTAL LIABILITIES (111+116) 117 53.061.403
OFF-BALANCE POSITIONS (from 119 to 121) 118 24.002.400
Operations on behalf and in favour of the third persons 119 844.654
Guarantees, sureties, asset for security of liabilities and
120 10.123.954
assumed irreversible liabilities
Other off-balance positions 121

CONSOLIDATED BALANCE SHEET AOP 31/12/2005. 31/12/2006.

ASSETS
Cash and cash equivalents 001 11.393.093 10.281.599
Deposits with the Central Bank and securities that can be
002 17.961.160 34.078.046
refinanced with the Central Banks
Interest and fees /commission receivables 003 435.222 502.253
Loans to banks 004 154.109 185.558
Loans to clients 005 37.617.032 53.134.077
Securities and other trading placements 006 687.144 328.482
Investments in securities held until maturity 007 65.012 139.160
Share in capital and other securities available for sale 008 260.813 389.203
Share in equity of other related legal persons declared by
009 - -
capital method
Fixed assets intended for sale and assets from operations
010 532 3.525
which are suspended
Receivables for overpaid income tax 011 15.820 26.746
Goodwill 012 - -
Intangible investments 013 5.324 58.161

53
Investment real-estate 014 - 3.092.489
Fixed assets 015 3.529.304 4.054.352
Other assets and prepaid expenses 016 4.252.521 667.401
Delayed tax funds 017 298.261 366.412
Loss exceeding the amount of capital 018 - -
TOTAL ASSETS ( from 001 to 018) 019 76.675.347 107.307.464
LIABILITIES

Liabilities to domestic banks 101 2.504.980 5.498.950

Liabilities to clients 102 62.013.230 82.626.571
Interest and Fees/Commissions Liabilities 103 36.485 50.998
Liabilities based on securities 104 - -
Profit liabilities 105 851 4.284
Liabilities based on current income tax 106 - 3.976
Liabilities based on funds intended for sale and assets from
107 - -
operations which are suspended
Other operational liabilities 108 887.891 700.458
Provisioning 109 1.187.312 1.158.150
Other liabilities and accrued costs 110 963.913 1.224.168
Deferred tax liabilities 111 50.194 64.612
TOTAL LIABILITIES (101 to 111) 112 67.644.856 91.332.167
CAPITAL
113 6.745.000 12.662.890
SHAREHOLDER AND OTHER CAPITAL
Reserves 114 1.456.512 1.969.210
Accumulated profit 115 701.147 1.303.720
Accumulated loss 116 - -
Positive cumulative differences based on the foreign currency
117 127.832 39.477
adjustment relative to foreign operations
Negative cumulative differences based on the foreign
118 - -
currency adjustment relative to foreign operations
TOTAL CAPITAL (113+114+115-116+117-118) 119 9.030.491 15.975.297
Minority owners stake 120 - 38
TOTAL LIABILITIES (112+119) 121 76.675.347 107.307.464
OFF-BALANCE POSITIONS (from 123 to 125) 122 32.156.494 53.230.919
Operations on behalf and in favour of the third persons 123 2.488.813 3.939.833
Guarantees, sureties, asset for security of liabilities and
124 16.726.196 20.431.660
assumed irreversible liabilities
Other off-balance positions 125 12.941.485 28.859.426

2.3.2.3. Consolidated Income Statement

CONSOLIDATED INCOME STATEMENT AOP 31.12.2004.

INCOME AND EXPENSE FROM REGULAR OPERATIONS
201 3.144.358
Interest income

54
Interest expense 202 1.040.148
Interest-based profit (201-202) 203 2.104.210
Interest-based loss (202-201) 204 -
Fees and commission income 205 2.130.249
Fees and commission expense 206 304.240
Fees and commission-based profit (205-206) 207 1.826.009
Fees and commission-based loss (206-205) 208 -
Securities sale and stake based net profit 209 407
Securities sale and stake based net loss 210 -
Exchange rate difference net income 211 1.949.351
Exchange rate difference net expenses 212 -
Dividends and stake based income 213 56.355
Other operational income 214 1.364.312
Expenses of indirect write-offs of placements and provisioning 215 3.156.324
Other operational expenses 216 3.896.853
Change in value of assets and liabilities based income 217 784
Change in value of assets and liabilities based Expenses 218 733
REGULAR OPERATIONS PROFIT (203-204+207-208+209-
219 247.518
210+211-212+213+214-215-216+217-218)
REGULAR OPERATIONS LOSS (204-203+208-207+210-
220 -
209+212-211-213-214+215+216-217+218)
EXTRAORDINARY INCOME AND EXPENSES
221 111.384
Extraordinary income
Extraordinary expense 222 35.859
NET EXTRAORDINARY INCOME 223 75.525
NET EXTRAORDINARY EXPESE 224 -
PROFIT BEFORE TAX (219+223-220-224) 225 323.043
LOSS BEFORE TAX (220+224-219-223) 226 -
Income tax 227 2.758
PROFIT AFTER TAX (225-227) 228 320.285
LOSS AFTER TAX (226+227) ILI (227-225) 229 -

CONSOLIDATED INCOME STATEMENT AOP 31/12/2005 31/12/2006

INCOME AND EXPENSE FROM REGULAR OPERATIONS
201 5.420.897 6.724.497
Interest income
Interest expense 202 1.867.357 2.090.456
Interest-based profit (201-202) 203 3.553.540 4.634.041
Interest-based loss (202-201) 204 - -
Fees and commission income 205 2.765.124 2.838.085
Fees and commission expense 206 326.877 283.019
Fees and commission-based profit (205-206) 207 2.438.247 2.555.066
Fees and commission-based loss (206-205) 208 - -
Net profit based on securities sale and stake 209 194.996 33.453
Net loss based on securities sale and stake 210 - -
Exchange rate difference net income 211 - 1.967.130

55
Exchange rate difference net expenses 212 452.845 -
Net income based on capital method made investments to related
213 - -
legal person
Net expenses based on capital method made investments to related
214 - -
legal persons
Dividend and stake income 215 21.774 76.107
Other operational income 216 858.824 3.433.814
Indirect write-offs of placements and provisioning expenses 217 3.386.992 5.351.577
Other operational expenses 218 4.245.568 5.872.831
Change in value of assets and liabilities based income 219 2.561.679 1.577.197
Change in value of assets and liabilities based expenses 220 985.632 2.158.934
REGULAR OPERATIONS PROFIT (203-204+207-208+209-
221 558.023 893.466
210+211-212+213-214+215+216-217-218+219-220)
REGULAR OPERATIONS LOSS (204-203+208-207+210-
222 - -
209+212-211+214-213-215-216+217+218-219+220)
SUSPENDING OPERATIONS PROFIT 223 - -
SUSPENDED OPERATIONS LOSS 224 - -
PROFIT BEFORE TAX (221-222+223-224) 225 558.023 893.466
LOSS BEFORE TAX (222-221+224-223) 226 - -
Income tax 227 4.621 8.246
Created delayed tax funds and reduction of delayed tax liabilities
228 223.001 68.151
based profit
Created delayed tax funds and reduction of delayed tax liabilities
229 50.194 14.439
based Loss
PROFIT (225-226-227+228-229) 230 726.209 938.932
LOSS (226-225+227-228+229) 231 - -
NET PROFIT ACCRUED TO MINORITY INVESTORS 232 - -
NET LOSS ACCRUED TO OWNERS OF THE PARENT LEGAL PERSON 233 - -
PROFIT PER SHARE 234 - -
Basic profit per share 235 1 1
Reduced profit per share 236 - -

2.3.2.4. Consolidated cash flow statement relative the previous three years

CONSOLIDATED CASH FLOW STATEMENT AOP 31/12/2004

A. OPERATIONAL CASH FLOWS
I Operational cash inflows (from 302 to 306) 301 5.664.578
1.Interest inflows 302 2.987.756
2. Fees and commission inflows 303 2.137.628
3. Other operational income based inflows 304 433.711
4. Dividends and stake inflows 305 56.355
5. Extraordinary income based inflows 306 49.128
II Operational cash outflows ( from 308 to 313) 307 5.505.441
6. Interest based outflows 308 994.310
7. Fees and commission based outflows 309 304.762

56
 8. Gross earnings, reimbursement of earnings and other
310 1.968.831
personal expenses based outflows
9. Tax, contributions and other taxes on the account of income
311 441.008
based outflow
10. Other operational costs based outflow 312 1.796.530
11. Extraordinary expenses based outflow 313 -
Operational net cash inflow before increase or decrease
III 314 159.137
in loans and deposits (301-307)
Operational net cash outflow before increase or
IV 315 -
decrease in loans and deposits (307-301)
Decrease in loans and increase in placed deposits (from
V 316 7.419.995
317 to 321)
12. Decrease of loans and placements to the banks and other
317 -
financial organisations
13. Decrease of loans and placements to clients 318 -
14. Decrease of securities and other placements in trade and
319 -
short-term securities held till maturity
15. Increase of deposits from the banks and other financia
320 936.731
organisations
16. Increase of clients’ deposits 321 6.483.264
Increase of placements and decrease of placed
VI 322 5.383.084
deposits ( from 323 to 327)
17. Increase of loans and placements to banks and other
323 1.547.783
financial organisations
18. Increase of loans and placements of clients 324 3.787.949
19. Increase of securities and other placements in trade and
325 47.352
short-term securities held till maturity
20. Decrease of deposits from banks and other financial
326 -
organisations
21. Decrease of clients’ deposits 327 -
Operational net cash inflow before income tax (314-
VII 328 2.196.048
315+316-322)
Operational net cash outflow before income tax (314-
VIII 329 -
315+316-322)
22. Income tax payment 330 2.758
23. Dividend payment 331 65.607
IX Operational net cash inflow (328-330-331) 332 2.127.683
X Operational net cash outflow (328-329-330-331) 333 -
B. INVESTMENT ACTIVITIES CASH FLOWS
I investment activities Cash flow (from 335 to 337) 334 16.980
1. Long-term investments in securities based inflows 335 -
2. Share and stake sale based inflows 336 -
3. intangible investments and fixed assets sale based inflow 337 16.980
II investment activities cash outflows (339 do 341) 338 740.552
4. Long-term investment in securities based Outflows 339 132.585
5. Share and stake purchase based outflows 340 165.161
6. Intangible investments and fixed assets purchase based
341 442.806
outflows

57
 III Investment activities net cash flow (334-338) 342 -
IV Investment activities net cash outflow (338-334) 343 723.572
V. FINANCING ACTIVITIES CASH FLOWS
I Financing activities cash inflow (from 345 to 348) 344 1.170.274
1. Capital increase based inflows 345 336.104
2. Long-term loans and subordinated liabilities based inflows 346 834.170
3. Disbursed short-term loans based net inflows 347 -
4. Securities based net inflows 348 -
II Financing activities cash outflows (from 350 to 353) 349 895.371
5. Own shares purchase based outflows based 350 -
6. Long-term loans and subordinated liabilities repayment
351 -
based outflows
7. Disbursed short-term loans based net outflows 352 895.371
8. Securities based net outflows 353 -
III Financing activities net cash inflow (344-349) 354 274.903
IV Financing activities net cash outflow (349-344) 355 -
G. SUM OF NET CASH INFLOWS (301 + 316 + 334 + 344) 356 14.271.827
D. SUM OF NET CASH OUTFLOWS (307+322+330+331+338+349) 357 12.592.813
Đ. NET CASH INCREASE (356-357) 358 1.679.014
E. NET CASH DECREASE (357-356) 359 -
Ž. CASH AT THE BEGINNING OF FISCAL YEAR 360 5.617.865
Z. POSTIVE EXCHANGE DIFFERENCIES 361 8.392.414
I. NEGATIVE EXCHANGE DIFFERENCIES 362 6.443.063
CASH AT THE END OF THE ACCOUNTING PERIOD (358-
J. 363 9.246.230
359+360+361-362)

CONSOLIDATED CASH FLOW STATEMENT AOP 31/12/2005 31/12/2006.

A. OPERATIONAL CASH FLOWS
I operational Cash inflows (from 302 to 305) 301 7.992.515 9.856.063
1.Interest inflows 302 4.955.256 6.368.475
2. Fees and commission inflows 303 2.718.067 3.144.005
3. other operational income based Inflows 304 297.410 267.476
4. Dividends and stake based inflows 305 21.782 76.107
II Operational cash outflows (from 307 to 311) 306 5.967.022 7.771.433
5. Interest based outflows 307 1.662.808 1.897.206
6. Fees and commission based outflows 308 326.723 282.845
7. Outflows on the basis of gross earnings, reimbursement of
309 1.864.481 2.683.543
earnings and other personal expenses
8. Tax, contributions and other taxes on the account of
310 422.883 543.342
income based outflow
9. Outflow based on other operational costs 311 1.690.127 2.364.497
Operational net cash inflow before increase or
III 312 2.025.493 2.084.630
decrease in loans and deposits (301-306)
Operational net cash outflow before increase or
IV 313 - -
decrease in loans and deposits (306-301)

58
 Decrease in loans and increase in placed deposits
V 314 19.276.976 24.548.901
(from 315 to 319)
10. Decrease of loans and placements to the banks and
315 - -
other financial organisations
11. Decrease of loans and placements to clients 316 - -
12. Decrease of securities and other placements in trade
317 - 372.864
and short-term securities held till maturity
13. Increase of deposits from the banks and other financia
318 154.774 2.948.175
organisations
14. Increase of clients’ deposits 319 19.122.202 21.227.862
Increase of placements and decrease of placed
VI 320 19.687.068 34.690.591
deposits (from 321 to 325)
15. Increase of loans and placements to banks and other
321 5.111.480 15.843.718
financial organisations
16. Increase of loans and placements of clients 322 14.059.267 18.846.873
17. Increase of securities and other placements in trade and
323 516.321 -
short-term securities held till maturity
18. Decrease of deposits from banks and other financial
324 - -
organisations
19. Decrease of clients’ deposits 325 - -
Operational net cash inflow before income tax (312-
VII 326 1.615.401 -
313+314-320)
Operational net cash outflow before income tax
VIII 327 - 8.057.060
(313+320-312-314)
20. Income tax payment 328 20.440 15.475
21. Dividend payment 329 40.192 159.489
IX Operational net cash inflow (326-327-328-329) 330 1.554.769 -
X Operational net cash outflow (327+328+329-326) 331 - 8.232.024
B. INVESTMENT ACTIVITIES CASH FLOWS
I investment activities cash flow (from 333 do 335) 332 84.553 183.734
1. Long-term investments in securities based inflows 333 3.122 -
2. Share and stake sale based inflows 334 68.914 183.734
3. Intangible investments and fixed assets sale based inflow 335 12.517 -
II Investment activities cash outflows (337 do 339) 336 1.122.106 732.110
4. Long-term investment in securities based outflows 337 - 129.954
5. Share and stake purchase based outflows 338 - -
6. Intangible investments and fixed assets purchase based
339 1.122.106 602.156
outflows
III Investment activities net cash inflow (332-336) 340 - -
IV Investment activities met cash outflow (336-332) 341 1.037.553 548.376
V. FINANCING ACTIVITIES CASH FLOWS
I Financing activities cash inflow (from 343to 346 342 2.406.749 6.082.341
1. Capital increase based inflows 343 1.375.179 6.082.341
2. Long-term loans and subordinated liabilities based inflows 344 1.031.570 -
3. Disbursed short-term loans based net inflows 345 - -
4. Securities based net inflows 346 - -
II Financing activities cash outflows (from 348 to 351) 347 358.784 273.999

59
 5. Own shares purchase based outflows 348 - -
6. Long-term loans and subordinated liabilities repayment
349 - 231.302
based outflows
7. Disbursed short-term loans based net outflows 350 358.784 42.697
8. Securities based net outflows 351 - -
III Financing activities net cash inflow (342-347) 352 2.047.965 5.808.342
IV financing activities net cash outflow (347-342) 353 - -
G. SUM OF NET CASH INFLOWS (301 + 314 + 332 + 342) 354 29.760.793 40.671.039
SUM OF NET CASH OUTFLOWS
D. 355 27.195.612 43.643.097
(306+320+328+329+336+347)
Đ. NET CASH INCREASE (354-355) 356 2.565.181 -
E. NET CASH DECREASEE (355-354) 357 - 2.972.058
Ž. CASH AT THE BEGINNING OF FISCAL YEAR 358 9.246.230 11.393.093
Z. POSTIVE EXCHANGE RATE DIFFERENCIES 359 4.683.956 11.479.965
I. NEGATIVE EXCHANGE RATE DIFFERENCIES 360 5.102.274 9.619.401

CASH AT THE END OF THE ACCOUNTING PERIOD (356-

J. 361 11.393.093 10.281.599
357+358+359-360)

2.3.2.5. Consolidated statement of changes in capital relative to the previous three years

CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL FOR THE PERIOD JANUARY 1 TILL DECEMBER 31, 2004

Regist Reserves
Issue Purchase Revaluatio
Share ered on the Other Total
Description Premiu d own n Profit
Capital unpaid account capital capital
m shares Reserves
capital of profit
Opening statement –
2895904 - - - 1374065 377908 40443 - 4688320
previous period
Adjusted opening
statement 2895904 - - - 1374065 377908 40443 - 4688320
(01/01/2003)
Issue of shares 974733 - - - - - - - 974733
Acquisition/sale of
- - - - - - - - -
own shares
Increase/decrease in
value based on - - - - - - - - -
revaluation
Transfer from 804-
delayed revaluation - - - - - - 29897 - 29897
profit from 2001
Other-conversion by
1158042 - - - (1374065) 96541 (70340) 7974 -
IAS
Profit/loss - - - - - - 126364 - 126364

60
Final statement –
previous period 5028679 - - - - 474449 124629 7974 5635731
(31/12/2003)
Opening statement –
5028679 - - - - 474449 126364 7974 5637466
current period
Adjusted opening
statement 5028679 - - - - 474449 124629 7974 5635731
(01/01/2004)
Issue of shares 336104 - - - - - - - 336104
Acquisition/sale of
- - - - - - - -
own shares
Increase/decrease in
value based on - - - - - 167 75260 - 75427
revaluation
Tax loan for
investments to fixed - - - - - - - - -
assets
Payments on account
- - - - - - -67341 7 -67334
of profit
Profit/loss - - - - - 321692 321692
Final statement –
current period 5364783 - - - - 474616 455975 7981 6303355
(31/12/2004)

CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL FOR THE PERIOD JANUARY 1 TILL DECEMBER 31 2005

Register Reserves
Purchase Revaluat
Share Issue ed on the Other Total
Description d own ion Profit
Capital Premium unpaid account capital capital
shares Reserves
capital of profit
Opening statement –
5028679 - - - - 474449 126364 7974 5637466
previous period
Adjusted opening
statement 5028679 - - - - 474449 126364 7974 5637466
(01/01/2004)
Issue of shares 336104 - - - - - - - 336104
Acquisition/sale of
- - - - - - - - -
own shares
Increase/decrease in
value based on - - - - - - - - -
revaluation
Tax loan for
investments to fixed - - - - - 167 75260 - 75427
assets
Payments on account
- - - - - - -67341 7 -67334
of profit

61
 Profit/loss - - - - - - 321692 321692
Final statement –
previous period 5364783 - - - - 474616 455975 7981 6303355
(31/12/2004)
Opening statement –
5364783 - - - - 474616 455975 7981 6303355
current period
Adjusted opening
statement 5364783 - - - - 474616 455975 7981 6303355
(01/01/2005)
Issue of shares 1375180 - - - - - - - 1375180
Acquisition/sale of
- - - - - - - - -
own shares
Increase/decrease in
value based on - - - - 734043 27 -82482 - 651588
revaluation
Transfer from profit
to the Bank’s - - - - - 373021 -373021 - 0
reserves
Payments on account
-4113 - - - - 1719 148445 1169 147220
of profit
Profit/loss - - - - - - 553148 553148
Final statement –
current period 6735850 - - - 734043 849383 702065 9150 9030491
(31/12/2005)

CONSOLIDATED STATEMENT OF CHANGES IN CAPITAL FOR THE PERIOD JANUARY 1 TILL DECEMBER 31, 2006

Registered
Share Other Issue Revaluatio Retained Own
Description unpaid Reserves Total
capital capital Premium n Reserves earnings shares
capital
Statement on
January 1st of the 5364783 7981 - - 474616 - 455975 - 6303355
previous 2005
Adjusted opening
statement on
5364783 7981 - - 474616 - 455975 - 6303355
January 1st of the
previous 2005
Total increase in
the previous 1375180 1169 - - 374767 734961 629885 - 3115962
fiscal year
Total decrease in
the previous 4113 - - - - - 384713 - 388826
fiscal year
Statement on
December 31st of
6735850 9150 - - 849383 734961 701147 - 9030491
the previous
2005
Adjusted opening
statement on 6735850 9150 - - 849383 734961 701147 - 9030491
January 1st 2006

Total increase in
2120820 - - 3961520 350878 189823 1079067 164410 7537698
the current year

Total decrease in
- - - - 463 78698 513731 - 592892
the current year
Statement on
December 31st of 8856670 9150 - 3961520 1199798 846086 1266483 164410 15975297
the current 2006

2.3.2.6. Important explanation of the individual position from the financial statements contained in

62
the Notes enclosed with financial statements
-

2.3.2.7. Final Auditor’s opinion

Deloitte
Extract from Auditor’s Report submitted before the Board of Directors and Shareholders of Komercijalna
Banka ad Beograd

„We have performed audit of the consolidated financial statements of Komercijalna Banka A.D. Beograd
Group (hereinafter referred to as „the Group“), which included the balance sheet of Komercijalna Banka a.d.
Beograd (hereinafter referred to as „the Bank“), Komercijalna Banka a.d. Budva as of December 31 2004, as
well as the appropriate consolidated income statements and statements on changes in capital for the
respective fiscal year. The Group’s Management is responsible for preparation of listed financial statements.
Our responsibility lies in giving an opinion on the financial reports mentioned, based on the audit we
performed. We haven’t performed the audit of Komercijalna Banka a.d. Budva financial statements, the
balance of which represents 2,7% of the consolidated balance sheet of the Group as of December 31, 2004.,
and total revenues represent 2,4% of the consolidated revenues of the Group for 2004. Another auditor
performed the audit of the financial statements of Komercijalna Banka a.d. Budva, whose report dated
February 7, 2005 has been delivered to us, therefore our opinion with respect and in the scope of the
financial information relative to Komercijalna Banka a.d. Budva included in the consolidated financial
statements of the Group is based on the opinion of another auditor. ”

Opinion
„
According to our opinion, based on the audit we issued and the report of another auditor, as of December 31
2004 the submitted consolidated financial statements declare financial statements of the Group
objectively and accurately according to all materially significant aspects, as well as and the results of its
business operations, changes in capital and cash flows for the respective year, in accordance with the
accounting regulations of the Republic of Serbia and the policies described in the Notes 2 and 3 enclosed
with the consolidated financial statements“.

Without expressing any reservation with respect to the given opinion, we draw the attention to the following
issues:
(a) Note 25 with the enclosed financial statements, stating that the Bank is obliged to adjust the scope
of its business operations with the provisions stipulated in the Article 26 of the Law on Banks and
other Financial Organisations, i.e. to adjust the scope and structure of its risk placements with the
regulations prescribed by the National Bank of Serbia. On December 31, 2004 the Bank had
placements exceeding the prescribed indicators of the larges possible loans to related person.
(b) Note 29 in the enclosed financial statements, stating that the Bank has engaged an independent
assessor to assess the value of the Bank’s real-estates as of December 31, 2004. According to the
assessment report dated February 25, 2005 the market value of the Bank’s real-estates was
assessed in the amount of 2.298.017 thousand dinars. The real-estates that were the subject of the
assessment are declared in the balance sheet as of December 31, 2004 within the Item of
Construction Properties, i.e. the real-estates intended for sale in the amount of 1.320.737 thousand
dinars, i.e. 206.419 thousand dinars.
(v) The Group has had no liability whatsoever to prepare the consolidated cash flows in 2003;
accordingly no comparative data have been presented in the consolidated balance of cash flows
within these financial statements.

Belgrade, February 28, 2005

Miroslav Tončić
Authorised Auditor
Deloitte
Extract from Auditor’s Report submitted before the Board of Directors and Shareholders of Komercijalna
Banka ad Beograd

„We have performed audit of the consolidated financial statements of Komercijalna Banka A.D. Beograd
Group (hereinafter referred to as „the Group“), enclosed on pages 2 to 33, which include the balance sheet

63
of Komercijalna Banka a.d. Beograd (hereinafter referred to as“ the Bank”), Komercijalna Banka a.d. Budva
as of December 31, 2005, and the respective consolidated income statement, statement on changes in
capital and cash flow statement for the fiscal year ending on that date, as well as the overview of significant
accounting policies and Notes enclosed with the financial statements. The Group’s Management is
responsible for preparation of listed consolidated financial statements. Our responsibility lies in expressing
an opinion on the consolidated financial statements based on the audit performed. We have not performed
the audit of the financial statements of Komercijalna Banka a.d. Budva, the balance of which represents
3,1% of the consolidated balance sheet of the Group as of December 31, 2005 and its total revenues
represent 2,7% of the consolidated revenues of the Group for fiscal 2005. Another auditor performed the
audit of the financial statements of Komercijalna Banka a.d. Budva, whose report dated February 8, 2005
has been delivered to us, therefore our opinion with respect and in the scope of the financial information
relative to Komercijalna Banka a.d. Budva included in the consolidated financial statements of the Group is
based on the opinion of another auditor. ”
„
According to our opinion, based on the audit we issued and the report of another auditor, as of December 31
2005 the submitted consolidated financial statements declare financial statements of the Group
objectively and accurately according to all materially significant aspects, as well as and the results of its
business operations, changes in capital and cash flows for the respective year ending on that date, in
accordance with the accounting regulations of the Republic of Serbia and the policies described in the Notes
2 and 3 enclosed with the consolidated financial statements“.
Belgrade, March 10, 2006
Miroslav Tončić
Authorised Auditor
Deloitte
Extract from Auditor’s Report submitted before the Board of Directors and Shareholders of Komercijalna
Banka ad Beograd

„We have performed audit of the consolidated financial statements of Komercijalna Banka A.D. Beograd
Group (hereinafter referred to as „the Group“), which included the balance sheet of Komercijalna Banka a.d.
Beograd (hereinafter referred to as „the Bank“), Komercijalna Banka a.d. Budva and Komercijalna Banka
a.d. Banja Luka as of December 31 2006, as well as the appropriate consolidated income statements and
statements on changes in capital and the cash flow statements for the respective fiscal year ending on that
date, and the overview of significant accounting policies and Notes enclosed with the financial statements“.

Opinion
„
According to our opinion the consolidated financial statements declare financial statements of the Group
as of December 31, 2006 objectively and accurately according to all materially significant aspects, as well
as and the results of its business operations, changes in capital and cash flows for the respective year
ending on that date, in accordance with the Law on Accounting and Audit of the Republic of Serbia and the
regulations of the National Bank of Serbia which order the field of financial reporting of the banks, and in
compliance with the basis for preparation of the financial statements declared in the Note 2 with the
consolidated financial statements“.
Belgrade, April 26 2007
Miroslav Tončić
Authorised Auditor

2.3.3. Significant indicators of work and business results

2.3.3.1. Significant indicators of business activity are hereto stated, such as the indicators of liquidity,
solvency, net working assets, profitability etc., compatible with the basic business activity of the Issuer. With
respect to the issuers from the financial sector whose type, manner of computation and level of certain
indicators are regulated by special regulations their realized and prescribed values are also listed.

I LIQUIDITY INDICATORS 2004 2005 2006

64
 Liquidity (average monthly 3,84% 4,23% 5,20%; 4,86%;3,73%
liquidity indicator) (In the first, second and
third month of the
(Min. 1%) reporting period)
II CAPITAL INDICATOR
Monetary part of the
shareholders capital (min. 10
mil. EUR) 74,7 mil. EUR 80,5 mil. EUR 156,4 mil. EUR
Capital adequacy 16,39% 15,37% 17,29%
(Min. 12%)
III INVESTEMENT
INDICATOR
Long-term investments (max. 47,73% 46,55% 33,95%
60%)
IV FINANCING
INDICATORS
Large and the largest possible 249,47% 62,50% 27,31%
loan (max. 400%)
V RISK INDICATORS

F/X risk indicator (max. 30%) 24,58% 8,27% 24,30%

2.3.4. Cost of wages

2.3.4.1. Cost of wages for the previous three months separately, in gross and net amount;

Value July 2007 August 2007 September 2007 TOTAL

(in 000 dinars)
Gross* 264.477 299.751 267.980 832.208
Net 161.951 190.624 164.133 516.708
* Data include net salary, tax and contributions chargeable to the employee, as well as the
contributions chargeable to the employer and membership fees for the Chambers that are
included in the base for computation of gross wages, but do not represent the salary.

2.3.5. Profit /loss per share

2.3.5.1. Stated with respect to the previous three business years:
-net profit or loss amount per share, on the basis of the financial statements;

Description 2004 2005 2006

PROFIT (LOSS) 304.101 686.371 914.004
Number of shares 536.067 673.585 885.663
Profit /loss per share 567,28 1.019 1.032

If the number of shares changed in course of the previous three years, than this information would
be declared with respect to the new circumstances and method for establishment of share value on
substitution of shares would be listed;

65
2.3.6. Dividend payment
2.3.6.1. The following is hereby stated:
- dates of dividend payment for the previous three years;
Dividend payment for the previous three years was executed after the decision made by the
Bank’s General Meeting of Shareholders
- the amount of dividend payment per share fore each class separately;

For 2004 dividend payment net amount was 37.351.000 dinars, i.e. 1.000 dinars per share
For 2005 dividend payment net amount was 48.929.810 dinars, i.e. 1.310 dinars per share
For 2006 dividend payment net amount was 52.963.718 dinars, i.e. 1.418 dinars per share.*
*Data related to preferential shares.

- ex-dividend day – any date immediately before dividend payment, on which the persons registered as
shareholders have the right to receive dividend, regardless to the fact that on the dividend payment date the
shareholder may as well be another person;
Ex-dividend day is determined by the Decision of the Bank’s Board of Directors

2.3.7. Off-balance sheet positions

2.3.7.1. Description of the most important off-balance sheet positions (in 000 din)
Business activities conducted on behalf and for the account of the third persons in 2006 amount
to 3.934.303 dinars.

Funds relative to the business activities conducted on behalf and for the account of the third
partly consist of the funds for micro loans and commission loans for the budget of the Republic
of Serbia / the City of Belgrade received from the creditors of foreign donors.
Guarantees, sureties, collaterals and assumed irrevocable liabilities amount to 20.194.905
dinars.
This position includes: payable guarantees – 6.232.730
performance guarantees-2.074.305
uncovered letters of credit -571.686
acceptance and guarantee bills -1.594.999
assumed irrevocable liabilities -9.721.185

With respect to listed guarantees and potential liabilities classified into categories from B2 to D
provision for potential losses in the amount of 696.758 was assessed. This provisioning was
declared in the liabilities position of the balance sheet.

Respective to guarantees and potential liabilities of A to B1 category provision from the Bank’s
profit was declared in the amount of 214.339 dinars.
There were no liabilities as per term foreign currency operations on December 31, 2006.
Other off-balance sheet positions amount to 26.603.785 dinars.

Total: 50.732.993 dinars.

2.4. OTHER RELEVANT FACTS

2.4.1. Other relevant facts that may be of importance for decision making process of the investors, which are
related to business operations, activities and financial position of the Issuer.
-

66
3. THE ISSUER’S DEVELOPMENT POLICY

3.1. Planned development activities of the Issuer

3.1.1. Planned capital increase
3.1.1.1. Plans related to the issuer’s capital increase, the method of such increase and planned time period
for the increase are hereto stated;
The Bank shall increase the capital in accordance with the strategies and development
objectives established at the General Meeting of Shareholders. Decision on the Increase of
Shared Capital shall be made by the Bank’s General Meeting of Shareholders.
3.1.2. Planned increase of business activities
3.1.2.1. Introduction of new activities, increase of the scope of business operations in the existing
activities;
Planned increase of the Bank’s business activities is based on expansion and improvement of
the existing service portfolio quality, but also on the introduction of new services such as:
-electronic banking services development,
-investment banking services development,
-establishment of the investment funds management association as well as the investment
fund,
-development of payment cards operations
-increase of the business operations cost-efficiency by reduction of costs arising from the
existing activities,
-expansion of the credit activity with the emphasis on small and medium enterprises,
simultaneously with the development of the Bank’s credit potential, and especially long-term
sources,
-development of domestic, and particularly international payment transactions with further
expansion of the branch and outlet network.
The Bank shall undertake all of these business activities with the aim of preserving
competitiveness and the increase of market share.

3.1.3. Planned investments

3.1.3.1. Planned capital investments, as well as the expected results of investment into real-estate and other
legal persons, planned amount of funds intended for the respective investments and the manner of
investment financing;
The Bank is planning to continue investing into branch and outlet network in locations where so
far it has not yet been present, both in the country and abroad (Federation of Bosnia and
Herzegovina, Republika Srpska, Macedonia and Croatia). These investments are related to
buying of business facilities in the country and abroad, investments for equipment and
adaptation of the business premises. Likewise, further investments for purchase of the new IT
equipment in accordance with the Electronic Banking Development Plan are also anticipated.

3.1.4. Business trends

3.1.4.1. The Issuer’s expectations regarding business activity development, trends of fluctuation of prices of
services it renders and/or products it sells ;

67
The basic Bank’s expectations with respect to business trends are related to the maintaining of
stable macro economical business environment. The expectations are that the trend of gross
domestic product growth shall continue, as well as the further drop of inflation rate. Stable
macro economical conditions would enable further reduction of the interest rates of the
approved loans, both retail and corporate.

Standardization of the banking services and introduction of the quality system is by all means
the trend in domestic banking sector, which also goes for the development of new aspects of
service offering, such as electronic banking. Risk management is the area that particularly gains
in importance, as well as the development of non-standard banking services, like consulting and
leasing services.

Also, more active share in financial market is expected, development of stock exchange
operations, and particularly the development of investment banking and opening of private
pension and investment funds.

3.1.5. Position of the limited liability company in the branch industry

According to the NBS – Central Bank’s data relative to the criteria of the total balance sheet
assets with the state of accounts as of June 30, 2007, Komercijalna Banka a.d. is positioned at
the fourth place, i.e. it has 8,02% share in the total balance assets of all the banks that operate
in domestic market. According to the total balance assets criteria, its main competitors Hypo
Alpe-Adria-Bank ad, Banca Intesa ad, Raiffeisen Banka a.d., AIK Banka and others. According to
the business network criteria the Banks main competitors are the banks which also have a
developed business network.
3.1.5.1. Assessment presented by the Issuer with respect to its position within the industry branch it belongs
to:
The Bank’s further increase of market share, measured by the share of balance assets in the
total balance assets of all banks, development of business network, and particularly the one
abroad, increase of F/X and dinar savings and the number of clients.

4. INFORMATION ON THE MEMBERS OF MANAGEMENT AND SUPERVISORY BOARD

4.1. MEMBERS OF MANAGEMENT AND SUPERVISORY BOARD

Manager’ Name Ivica Smolić, President of the Executive Board
Dr Predrag Mihajlović, Deputy President of the
Executive Board
Dragan Santovac, Member of the Executive Board
Name and Function of members of the Mr Vladislav Cvetković, Chairman
Board of Directors Anka Gajić, Member
Dr Miroslav Todorović, Member
Victor Pastor, Member
Dragica Pilipović-Chaffey, Member
Mr Mirko Petrović, Member
Prof. Dr Boško Živković, Member
Name and Function of the members of The Bank has no Supervisory Board in accordance
Supervisory Board with the Law on Banks

4.2. REIMBURSEMENTS AND OTHER GRANTS OF THE ISSUER

4.2.1. Reimbursements paid to the members of management (Data provided with respect to the previous
three years separately, in net amount, to the managers and members of the Board of Directors):
-total amount of wages and other reimbursements of the management members;

68
 Reimbursements for the Wages paid to the members of the
members of the Board of Executive Board
Directors
Year Net Net
2004 2.755.084 -*
2005 2.949.315 -
2006 5.368.349 36.185.000
* Note: The Bank’s Executive Board did not exist in 2004 and 2005. The Bank’s Executive Board
was formed on October 1, 2006.
- Total amount of loans approved to the management members
Year Board of Directors Supervisory Board Executive Board
2004 - - -
2005 - - -
2006 92.453,18 EUR - -
- Total amount of other grants given to the management members.
-

4.2.2. Reimbursements paid to the members of the Supervisory Board

(Data presented for the previous three years separately, in net amount):
-Total amount of the reimbursements to the members of the Supervisory Board *;
Year Net amount
2004 2.052.940
2005 1.707.496
2006 3.180.367

*The Bank has had no Supervisory Board since October 1, 2006, in accordance with the
provisions of the Law on Banks.
-Total amount of other grants given to the members of the Supervisory Board;
-

4.2.3. Special rights and benefits realized by the members of the Supervisory Board
Statement of other earnings, benefits or rights realized by the members of management and Supervisory
Board with the Issuer;
Member of the Board of Directors have no special rights with respect to the Bank’s shares
acquisition

4.2.4. Business transactions performed between the Issuer and the members of management and
Supervisory Board
Statement related to business transaction of significant scope concluded between the Issuer and the
members of management and Supervisory Board, or the Issuer and persons related to the members of
management and Supervisory Board in the last year;
-

4.3. SHARE OF MANAGEMENT AND EMPLOYEES IN THE ISSUER’S TIER I CAPITAL

69
4.3.1. Statement of:
-share of the members of management and Supervisory Board in Tier I capital
Member of the Executive Board and the Board of Directors have neither direct nor indirect
ownership in the Bank’s shareholders capital
-share of other employees in the Issuer’s Tier I capital;
Employees have no significant share in shareholders capital of the Bank. According to the data
from the Central Securities, Depository and Clearing House (October 5, 2007) there are no
natural persons with more than 0.6% stake in the Bank’s shares with voting rights.
-The Issuer’s policy towards the share of employees in the Issuer’s Tier I capital.
-

5. RESPONSABLE PERSONS
5.1. FIRST AND LAST NAME OF THE PERSON RESPONSIBLE FOR THE CONTENT OF THIS
PROSPECTUS
Dr Predrag Mihajlović Ivica Smolić
Deputy President of the EB President of the EB

5.2. Person responsible for the content of Prospectus shall sign the following Statement:
STATEMENT: I hereby state that the Prospectus contains true, accurate, complete and all
relevant information on the Issuer and the security that are of significance for investors’
decision-making.

_________________________ ______________________
Dr Predrag Mihajlović Ivica Smolić
Deputy President of the Executive Board President of the Executive Board

70
DATE: 24/10/ 2007

Securities and Financial Markets Division

Division Director Executive Director
Vladimir Garić Lidija Sklopić

__________________ __________________

KOMERCIJALNA BANKA AD BEOGRAD

Dr Predrag Mihajlović Ivica Smolić
Deputy President of the Executive Board President of the Executive Board

_________________________________ ____________________________

6.DECISIONS OF THE COMMISSION

6.1. Number and date of the Commission Decision on the Approval of the Prospectus on Shares
Issue.
Decision on the Approval of the Prospectus on Securities Issue No. 4/0-03-7491/7-07 from
16/11/2007

71