Corporate Responsibility Report for 2016
Bank of
The VUB Bank has been supporting the contemporary Slovak art for many years. It organises the Painting Competition – the VUB Foundation Award for Painting Work for Young Artists in cooperation with the VUB Foundation each year. The competition is designed for professional artists under the age of 35 and aims to help them start their artistic career. The works, registered for the competition, are evaluated by an international jury. In addition to the recognition of experts, winners are awarded a financial prize. The competition is accompanied by an exhibition of 20 finalists each year, hence assisting in presentation of the contemporary young art to the public. Cover
Alexandra Barth (*1989, Malacky) Landlady (2015) Acrylic on canvas, 165 × 165 cm Collection of VUB Foundation Alexandra Barth was given the unofficial honorary mention of the international jury in 2015 and qualified for the finals in 2016. Although her formal language is closely related to the American pop art technique (Alex Katz, Roy Lichtenstein) or the promotional illustration - a combination of painting, graphic templates and spray –it paradoxically serves the author to interpret her personal and focused observation of the surrounding world. Barth studied at the Academy of Fine Arts in Bratislava in 4th Studio of Prof. Ivan Csudaia. She lives and creates in Bratislava.
Table of Contents
To Our Stakeholders
04
About This Report
05
Profile and Governance
07
Vision, Mission, Values
08
Company Profile
11
Financial Indicators
13
Organization and Governance
18
Key Areas in the Value Creation Process
23
Our Approach to Corporate Responsibility
25
Adoption of International Standards and Commitments
26
Management Model and Strategy
27
Reporting Methodology
28
Who Are Our Stakeholders
29
Dialogue with Stakeholders
31
Analysis of Materiality
31
Target Fulfilment for 2016
33
Business Ethics and Management of Sensitive Aspects
34
Our Stakeholders
42
Clients
43
Employees
59
Shareholders
73
Suppliers
78
Environment
83
Community
98
Annexes
105
Table of Global Reporting Initiative Indicators
106
Statement of External Verifier
113
3
To Our Stakeholders
Dear stakeholders, The year 2016 was a successful year for the Bank. It is with pleasure that I can state that we achieved excellent business results, outran the competition and significantly increased our market share in the key markets. I am pleased we reached these targets with a responsible approach to our business activities. As a responsible bank, we have been assuming greater responsibility not only in terms of economic but also social and environmental impacts of our business. Running a business responsibly means achieving success by methods that honour ethical values, appreciate people, enhance communities and protect the environment. Everyday decisions of the management focus on management of economic, social and environmental impacts of Bank’s activities on its stakeholders. We provide our clients with top-level banking and financial services by which we create and activate tools for development of Slovakia’s economic system. We always approach our employees, who participate in fulfilment of our mission, with respect without making any differences. We create a healthy, motivating and fair environment for them bringing higher productivity and enthusiasm to their working activities. Our aim is to build a shareholder relationship based on trust and satisfaction. We always act transparently towards our suppliers; their selection is subject to meeting objective conditions valid for all bidding potential suppliers. We realize that our decisions have a direct and indirect impact on the environment, therefore we support sustainable growth of the entrepreneurial environment. By supporting and holding cultural and charity projects we want to contribute to the benefit of society and environment. The Bank strives to be a good neighbour and help communities where our stakeholders live and operate to develop by means of various projects. Ethics and responsibility may not, however, remain only words. Actions must follow in practice, since without them we cannot be a successful company with satisfied clients. And that is our primary goal. In Bratislava June 30, 2017
Alexander Resch Chairman of Management Board and Chief Executive Officer Všeobecná úverová banka, a.s.
4
About This Report
VUB Bank is releasing already its tenth consecutive annual corporate responsibility report compiled already the second time under the G4 version of the international Global Reporting Initiative (“GRI”) guidelines. The report informs on VUB’s performance in the financial, social and environmental areas. The report submit-
ted contains qualitative data for the calendar and simultaneously the financial year 2016. They are comparable with the previous financial periods. It is published at V. In the interest of saving the natural resources, we are issuing the report in electronic version only. You can send your reactions and questions to V.
Overview of Corporate Responsibility Reports Issued. Issue Date
Level of Reporting under GRI Methodology
2016 Report
30/06/2017
core application level
2015 Report
30/06/2016
core application level
2014 Report
20/04/2015
B+, audited
2013 Report
02/04/2014
B+, audited
2012 Report
02/04/2013
B+, audited
2011 Report
02/04/2012
B+, audited
2010 Report
31/03/2011
B+, audited
2009 Report
31/03/2010
B+, audited
2008 Report
31/03/2009
B+, audited
2007 Report
20/08/2008
B+, audited
5
6
Profile and Governance
Profile and Governance
Vision, Mission, Values
Vision To be the best bank in Slovakia for customer satisfaction, while maintaining excellence in profitability and operating efficiency.
Mission
Conscious of the value of our activities and services following the needs of the community we are part of and based on trust and respect for all our stakeholders - customer, employees and shareholder to create a sense of belonging of our employees and community and compete on the market with a sense of fair play and promote sustainable growth and results.
Values
VUB Bank’s corporate culture and Code of Ethics feature the values that help us accomplish the expected results. Values that direct our behaviour in complex situations requiring us to choose from among several paths. They always keep focus on permanently sustainable development. They are the key element of our success as individuals but also as the entire bank. They are published on page V.
8
Profile and Governance
Values of Intesa Sanpaolo Group These values are valid for all banks and subsidiaries in the Intesa Sanpaolo Group. They define what ethical rules and principles we follow in our business.
Transparency
We are committed to making transparency the basis of our actions, advertising and contracts in order to allow all our stakeholders to make independent and informed decisions.
Equality
We are committed to eliminating all forms of discrimination from our conduct and to respecting differences in gender, age, ethnic origin, religion, political and union persuasions, sexual orientation and identity, language or disability.
Excellence
We set ourselves the goal of continuous improvement, forward thinking, anticipating challenges and fostering creativity aimed at innovation, both recognising and rewarding merit.
Values of the individual
The value of each single person is a guide for our modus operandi: we use listening and dialogue as tools to continuously improve our relationships with all of our stakeholders.
Responsibility in the use of resources
We aim to use all our resources attentively, promote behaviour based on the best use of resources and the avoiding waste and ostentation, and we give priority to choices that take sustainability into account.
Integrity
We pursue our goals with honesty, fairness and responsibility, in full and true respect of the rules and professional ethics and in the spirit of signed agreements.
Respect for specific qualities
It is our intention to combine large-scale operations with profound local roots and to be a bank with a broad vision, without losing sight of individuals.
9
VUB Brand Values They say who we are. They are deeply rooted in everything we do.
Simplicity
We would like to offer products and services that are simple and understandable. We are able to adapt and respond flexibly.
Usefulness
Our aim is to address specific problems of people, we strive to deliver relevant solutions. When introducing innovations, we are seeking for added value for our clients.
Humanity
We think of the needs of clients and employees and we would like to build long-standing relationships. We are not humans who have become bankers, but we are bankers who have remained humans.
Humour
We believe that everything goes better with a smile, and for that reason we strive to ensure that our clients have also reason to smile each time visiting VUB Bank.
10
Company Profile
Key Indicators Financial
2016
2015
2014
Loans to customers (in EUR billion)
10.2
8.8
8.0
Customer deposits (in EUR billion)
9.7
8.5
7.9
430.82
430.82
430.82
1,135,457
1,202,804
1,227,856
237
236
239
90
90
Share capital (in EUR mil.) Number of clients Number of sales points Percentage of local suppliers Social Number of employees
3,439
3,456
3,493
- thereof women
2,476
2,520
2,568
46
42
37
18.4
15.7
13.4
11
4
3
225
200
238
4,001
4,168
8,031
153
147
140
11
12
14
- thereof with disability Turnover percentage Number of injuries Support to non-profit organizations (in EUR thous.) Environmental Energy consumption per employee (kWh) Paper consumption per employee (kg per year) Water consumption per employee (litres per day)
VUB Bank was established on January 1, 1990 by spinning off commercial activities for corporate clients in the territory of the Slovak Republic from the Czechoslovak State Bank. VUB Bank is a public joint-stock company operating in the Slovak and Czech Republics. A break-through for our activities was the year 2001, when a significant Italian banking group IntesaBci (nowadays Intesa Sanpaolo) acquired a majority stake in VUB Bank. VUB Bank is currently the second largest bank in Slovakia. VUB Bank administers deposits amounting to EUR 9.7 billion and loans worth EUR 10.2 billion. The Bank’s portfolio holds currently more than 1.1 million clients. VUB has been one of the most profitable banks in Slovakia in recent years. The shareholder structure is contained in the Shareholders chapter.
11
Profile and Governance
VUB Group Provides a Wide Range of Services VUB Bank is the only universal bank holding a licence for provision of fully-fledged banking services to individuals, corporate and institutional clients. By means of its subsidiaries it offers services in the area of leasing (VUB Leasing), pension saving (VUB Generali), consumer finance (Consumer Finance Holding) or factoring (VUB Factoring). The Bank also mediates a range of insurance products.
Banking
Leasing
Consumer Finance
About Intesa Sanpaolo Group
Factoring
Pension Saving
The Italian banking group Intesa Sanpaolo, based in Turin and Milan, is the majority shareholder of VUB Bank with a stake of 97.02 % in the Bank’s share capital. The financial group Intesa Sanpaolo was established in January 2007 by a merger of significant Italian banks, Banca Intesa and Sanpaolo IMI. Both banks held an important position in the Italian banking market prior to the merger and they greatly contributed to the consolidation process within the Italian banking sector. The Intesa Sanpaolo Group has a leading position in Italy and it is one of the leading banks providing financial products and services to households and companies across Europe. It has a strategic business representation in the region of Central and Eastern Europe and in the area of the Mediterranean Sea. Through its subsidiary banks, it operates in the following countries: Albania, Bosnia and Herzegovina, Croatia, Egypt, Hungary, Romania, Russian Federation, Serbia, Slovenia and Slovakia V.
12
Profile and Governance
Financial Indicators
The real economy remained for the Slovak banking positive also in 2016. GDP growth was sustained at the level exceeding 3% and the labour market continued improving, while the number of jobs in the economy increased to an all-time high and for the first time ever the unemployment rate dropped below the Eurozone level. Although the investments financed from EU funds recorded a correction of their previous growth, which decelerated the activity in construction of large projects in the infrastructure, but on the other hand the new construction of housing started growing at a level not seen since the boom years of 2006-07. The number of flats under construction reached an all-time high in the post-communist era. Meanwhile, the industry’s growth pace remained very decent, mainly driven by the automotive production, where production capacities are being expanded as Jaguar Land Rover confirmed its intention to invest in Slovakia. As for retail, consumer expenses finally accelerated, even though they still did not reach their potential created by the dynamic strengthening of the labour market. The people continued to use their improved financial situation to rather invest into housing than for consumption. This lead to a strong mortgage demand, which kept the growth of housing loans in double-digit figures. The price development reflected these various trends, i.e. relatively weak consumer expenses against a strong housing demand. Consumer inflation remained thus negative third consecutive year, while the real estate prices were growing at a fast pace year-on-year approaching 10 %. Besides an improving labour market and increasing wages, the housing loans demand was also supported by falling interest rates. In fact, in 2016 the interest rate environment in Slovakia came to one of the lowest levels of the entire Eurozone. For a certain period, the yields of the Slovak government bonds as well as the rates on the new housing loans in the key segment of 1 to 5-year fixation hit the very lowest level of all Eurozone countries except Germany. Along with the loan demand stimulation, the low interest rates started impacting the banking sector’s profitability. The net interest income dropped year-on-year by nearly 5%. In overall, profitability still showed a year-on-year growth attributable however only to the temporary factors such as the sale of VISA shares, reduced bank levy rate, lower provisions and dividend revenue. Disregarding these factors, the sector’s net profit as at September recorded a year-on-year decrease. Naturally, this extreme interest rate environment impacted also the financial performance of VUB Bank. Basically, not even the huge 17 % growth of total loans reached by VUB Group could sufficiently compensate for the impact of falling margins on interest rate income. So it is obvious that if it were not for the growth of volumes, the negative impact of the dropping margins on profitability would have been even bigger. Therefore, it was very important that in 2016 we were able to significantly grow our loans market share. While at the end of 2015, our share in total bank loans in the Slovak market stood at 18.5%, in December 2016 this share represented 19.9 %. In addition to outstanding business results which helped us to outpace our competition and significantly increase our share in the key markets, we saw positive development also in the trends in operating efficiency and the quality of our loan portfolio. This development enabled us to achieve the best financial performance possible and to a great extent compensate for the negative impact of falling margins and increasing regulatory costs.
13
Profile and Governance
Market Shares as at 31/12/2016
as at 31/12/2015
as at 31/12/2014
Total assets
18.8%
17.7%
17.6%
Customer deposits
17.8%
16.7%
16.8%
Loans to customers
19.9%
18.5%
18.4%
Mortgage loans
42.1%
40.4%
41.6%
Branch network
18.5%
18.1%
18.7%
Payment cards
22.7%
24.4%
25.8%
ATMs
20.8%
20.9%
21.1%
EFT POS terminals
21.1%
16.3%
18.2%
The complete financial performance is published in VUB’s 2016 Annual Report V.
VUB Bank’s Headcount (always as at 31/12) 2016
3,436
2015
3,456
2014
3,493
Employee Structure as at 31/12/2016 Management Board members Managers Non-managers
14
6 539 2,899
Profile and Governance
Subsidiaries with Majority Stake of VÚB, a.s. Consumer Finance Holding, a. s. Registered Office: Shareholders: Stake of VÚB, a. s.,: Core business:
Hlavné nám. 12, 060 01 Kežmarok VÚB, a.s. 100 % Provision of non-banking loans
VÚB Leasing, a.s. Registered Office: Shareholders: Stake of VÚB, a. s.,: Core business:
Mlynské nivy 1, 829 90 Bratislava VÚB, a.s. 100 % Financial and operational leasing
VÚB Factoring, a.s. Registered Office: Shareholders: Stake of VÚB, a. s.,: Core business:
Mlynské nivy 1, 829 90 Bratislava VÚB, a.s. 100 % Execution of factoring and forfaiting transactions
15
Profile and Governance
Business Network
The VUB business network servicing more than 1.13 mil. clients is the second largest in Slovakia. VUB’s management is based in Bratislava.
2016
2015
2014
196
193
196
Mortgage Centres
11
11
11
Corporate Branches
29
32
32
Magnifica Centres
8
–
–
Prague Branch
1
1
1
575
572
572
Retail Branches
Number of ATMs
We want to be closer to our clients and therefore our services are available to them in more than 200 branches across Slovakia. We have been redesigning our branches into a modern design in order to make our clients feel good, as if at home, since a satisfied client is our priority. For a comfortable access to account, we have installed more than 500 ATMs in the Slovak towns and villages. Our branches and ATMs are placed also in the low population density areas. The list of all branches and ATMs is available at V.
Membership in Organizations
In 2016, VUB Bank was an active member in several associations and professional associations. The most important professional association is the Slovak Banking Association, which is a key association in the Slovak financial sector and the only organization representing the interests of banks operating in the Slovak Republic. Other significant organizations, in which VUB Bank was a member, include the Italian, U.S. and German Chambers of Commerce, the Brokers Association and the Slovak Chamber of Commerce and Industry. We are a member of the Business Leaders Forum association joining leaders in enforcement of corporate responsibility principles in Slovakia.
16
Profile and Governance
Awards The Best Bank in Slovakia The 23rd annual prestigious competition of the Global Finance magazine, a respected financial magazine, was yet again successful for VUB Bank. After the years 2012, 2014 and 2015, when Global Finance evaluated VUB Bank as the safest bank in Slovakia, in 2016 it won the most important title of the best bank in Slovakia. In selecting the best candidates, decisive are the criteria such as growth of assets, profitability, strategic relations, customer centres, pricing or innovation of products and services. The Best Bank Partner of the Year Each year, the financial and consultancy firm Gepard Finance organizes a survey of the best cooperation between brokers and banks. For brokers specializing in mortgages, the best bank partner was VUB Bank. Owing to the forthcomingness and assistance by the mortgage specialists and branch managers of VUB Bank and also thanks to the expertise of the employees of the External Mortgage Sales Department and their professional relation with brokers, VUB Bank managed to defend its leading position from 2015. Mortgage of 2016 The portal www.FinancnaHitparada.sk V announces expert evaluation of banking products already for the second time and also this year it awarded the best products in the Slovak financial market. In an expert evaluation of the portal in the category Mortgage of 2016, the most success was reaped by the mortgage loan from VUB Bank. VUB Bank thus confirme d its leadership in the Slovak mortgage market. Mortgage of 2016, Refinance Mortgage of the Year, Innovation Award An expert jury of the third annual competition Fincentrum & TREND Mortgage of the Year was to decide about the best mortgage products in the market. It pronounced the Mortgage of the Year as well as the Refinance Mortgage of the Year the products of VUB Bank, which reaffirmed our number one position in the Slovak mortgage market. The jurors appreciated our proactive steps related to the change of legislation valid from 21 March. As the first bank in Slovakia, we brought a mortgage loan with an interest rate below 1.5 % combined with interesting benefits. The organizers granted also two special awards. VUB Bank received the innovation award. HERMES Communicator of 2016 The HERMES Communicator of the Year Project aspires to motivate institutions in Slovakia to improve the quality of their communication. It wants to alert the expert public about the importance of communication towards clients and support the development of communication and legal literacy of the lay public. VUB Bank became the winner in the Banking category. The Bank won based on the results of a representative quantitative survey run by MEDIAN SK. Advertising Efficiency Award The prestigious award Effie is annually awarded by the Club of Slovak Advertising Agencies to the most efficient advertising campaigns and concepts in Slovakia. In 2016, the award for a communication concept starring Petra Polnišová went to VUB Bank. It might be said that VUB Bank is the most efficiently communicating bank in the Slovak market, since no other Slovak bank was awarded. TECHBOX BANK APPLICATION OF 2016 The competition survey NAY TECHBOX of 2016 is the sixth annual consumer survey about the best products, operators and banking applications of the year. The survey’s aim is to honour the best of the given year from the perspective of consumers. The selection is narrowed to six nominations in each category chosen by an expert committee consisting of experienced technological editors of the TECHBOX magazine and the TECHBOX.sk portal. In the 2nd year of the category, VUB Bank ranked second with its VUB Mobile Banking application. Smart Bank of 2016 The second annual Smart Bank survey brought a national competition for the best bank applications in Slovakia. In a public voting, the best applications were evaluated according to their functions and features that individual banks offer to clients. As many as 11,715 people participated in the voting for the best Slovak bank applications in order to decide about the winners and express their opinions on the mobile banking in Slovakia. VUB Bank ranked third.
17
Profile and Governance
Organization and Governance Profile and Governance
Organization and Governance
Supervisory Board
Organisational Chart of VÚB, a.s.,
Internal audit
at 31 December 2016
Management Board
CEO Deputy CEO Compliance
Security & BCM
1950Human – PR and Marketing Resource Communication & Organisations
9100 PR– and Human Marketing Resources Communication & Organisation
Legal
AML
1020 – Customer satisfaction
CRCR Prague 220VÚB – VÚB Prague Branch
COO
CFO
7000 Risk – Risk Management Management
3000Corporate – Corporate & SME & SME
4000 Retail – Retail
IT Governance
Accounting
7300 Enterprise – Enterprise RiskRisk Management
3200 Multinational – Corporate Customer Clients
Mass clients 4400 – Mass clients
Demand Management
ALM & Treasury
7400 Corporate – Corporate andand Retail Retail Underwriting Underwriting
3300 Domestic – Small Corporates & Medium 2 Institutional Enterprises Client
4050 – Small Business Small Business
IT Development
Planning & Control
7600 Internal – Asset Validation Quality Management and Controls
3500 – Financial and SME Capital Markets
Afluent clients 4060 – Afluent clients
IT Operations
Internal Services & Facillity Management
7700 Recovery – Recovery
Financial 3800 – Corporate Institutions Transactions and sales Banking
4500 Network – Network Management Management
Back office & Payments
Research
7900 Pollicy & Pollicy & –Methodology Methodology
3900 Corporate – Project Banking & Real Estate products Finance
4700 Channel – Channel Integration Integration
Change management
Procurement
CRM & Client 4010 – CRM & Client analysis analysis Private 4800 – Private Banking
Support Units
16
18
Control Units
Legend: Legend:
Division Division Department Department
VÚB Factoring, a.s.
CFH, a.s.
VÚB Generali DSS, a.s.
VÚB Leasing, a.s.
Slovak Banking Credit Bureau, spol. s r.o.
VÚB AM, správ. spol., a.s.
Business Units
Profile and Governance
ADMINISTRATION AND GOVERNANCE
Similarly to its parent company Intesa Sanpaolo, also VUB Bank applies a dual administration and control model, within which the control activities and strategic management are separated from the management of business activities performed by the Bank’s Management Board. Ownership and management are thus clearly defined and the Supervisory Board functions as a filter between the shareholders and the Management Board. The Bank’s management disposes of a full execution power, whereas the Supervisory Board performs a control function. This model provides for transparency and reduces the risk of a conflict of interests.
Bank’s Bodies
Bodies of VÚB, a.s. are the following: a) General Meeting, b) Supervisory Board, c) Management Board.
General Meeting
General Meetings are the Bank’s top decision-making body representing all shareholders and their decisions approved pursuant to applicable legal regulations and Bank’s Articles of Association are binding for all shareholders. The General Meeting consists of all attending shareholders. Members of the Supervisory and Management Boards regularly attend General Meetings facilitating their smooth course and simultaneously answering the questions and inquiries presented by shareholders. The Management Board is obliged to convene a regular General Meeting within the period of three months from the compilation of regular financial statements and its verification by an auditor. Should the interests of VÚB, a.s. require so and in cases stipulated by legal regulations an extraordinary General Meeting may be convened.
Supervisory Board
Supervisory Board is the top control body of the Bank. It supervises the Management Board and performance of the Bank’s business activities. Save for members of Supervisory Board elected by the employees of VÚB, a.s., a member of the Supervisory Board may not be a member of the Management Board of VÚB, a.s. or an employee of VÚB, a.s. The Supervisory Board inspects and submits conclusions and/or recommendations to the General Meeting regarding mainly the following: fulfilment
of tasks assigned to the Management Board by the General Meeting; of VÚB, a.s.’s activities with the Articles of Association, and with legal regulations; business and financial activities of VÚB, a.s., accounting, documentation, accounts, condition of property, payables and receivables of VÚB, a.s. compliance
The Supervisory Board has a minimum of three members and a maximum of seven members, out of whom one is the Chairman and at least one is a Vice Chairman. Members of the Supervisory Board are elected and removed by a decision of the General Meeting. Their term of office is three years.
Supervisory Board members in 2016: Ezio Salvai Ignacio Jaquotot Luca Finazzi Paolo Sarcinelli Christian Schaack
Chairman of Supervisory Board (independent member) Vice Chairman of Supervisory Board Supervisory Board member (since 23/05/2016) Supervisory Board member Supervisory Board member (independent member)
Andrej Straka
Supervisory Board member (employee representative)
Ján Gallo
Supervisory Board member (employee representative)
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Profile and Governance
Supervisory Board Committees
Pursuant to the relevant provisions of the Banking Act No. 483/2001 Coll. in applicable version and the Accounting Act No. 431/2002 Coll. in applicable version and to the relevant provisions of the VUB Articles of Association, the Supervisory Board established the Audit Committee, Remuneration Committee and Risk Management Committee.
Audit Committee
As of December 31, 2016, the Audit Committee consisted of five members including its Chairman. In 2016, the Audit Committee held four meetings. The issues discussed at its meetings are mainly related to: preparation of the financial statements and observation of the special regulations; efficiency of internal control and risk management system in the Bank; compliance with regulatory requirements; audit of the individual financial statements and audit of the consolidated financial statements. Furthermore, the Audit Committee examines and monitors the independency of the auditor, especially services provided by the auditor according to a special regulation, recommends the appointment of an auditor for carrying out the audit of the Bank, and sets a date for an auditor to submit a statutory declaration about its independence. The Audit Committee was regularly inviting also the Bank’s external auditor to attend its meetings. The control function in VUB is performed by the Internal Audit and Control Department, the authorities and duties of which are defined by the Supervisory Board, excluding those defined by law. The Head of the Internal Audit and Control Department may be appointed to/withdrawn from the position upon the recommendation and prior consent issued by the Supervisory Board. Furthermore, the Supervisory Board also defines the remuneration and compensation scheme for this position. In 2016, the Supervisory Board was inviting also the Chairman of the Audit Committee and the Head of Internal Audit and Control Department to attend its meetings.
Remuneration Committee
The Remuneration Committee was founded in VUB in July 2012. It has 3 members, all of whom are members of the Supervisory Board. The committee meets at least once a year. Its main roles are to independently assess the compensation principles of the selected positions (according to the Banking Act) and their impact on the management of risk, own funds and liquidity; prepare decisions concerning the compensation of the selected positions including decisions affecting the risks and the management of risks in the Bank, which are to be taken by the VUB Management Board; take into account long-term interests of shareholders, investors and other stakeholders of the Bank in preparing these decisions and oversee the remuneration of selected positions.
Risk Management Committee
The Risk Management Committee was established by a decision of the Supervisory Board in September 2015. It consists of 3 members, whereas two of them are Supervisory Board members. The Risk Management Committee forms part of the risk management primarily cooperating with the supervising, consulting and support units mainly in monitoring the risk management system and risk management strategy and their implementation.
Management Board
Management Board is the statutory body governing the Bank’s executive management. It is authorized to act on behalf of the Bank in all matters and to represent VÚB, a.s. in relations with third parties, in front of courts or other authorities. The Management Board manages the activities of VÚB, a.s. and takes decisions over any matters related to VÚB, a.s, which, under the legal regulations or Articles of Association have not been reserved for the authority of other VUB bodies. The Management Board mainly: a) implements decisions taken by the General Meeting and the Supervisory Board; b) ensures the accuracy of mandatory bookkeeping and other records, trading books and other documentation of VÚB, a.s.; c) manages the issuer’s securities registry;
20
Profile and Governance
d) after prior approval by and upon a proposal of the Supervisory Board, it submits to the General Meeting proposals for approval of: proposal for amendment to the Articles of Association; proposals for increase and decrease of share capital and bond issues; ordinary, extraordinary, or consolidated financial statements; proposals for distribution of current and retained profits and/or proposals for settlement of outstanding losses from the current and/or previous years; annual report; e) approves and regularly reviews the Bank’s Compensation Policy. Members of the Management Board are elected and removed by the Supervisory Board. The Supervisory Board shall simultaneously appoint who of the Management Board members is the Chairman, and if a Vice Chairman or Vice Chairmen had been appointed it shall determine who of them is the Vice Chairman or Vice Chairmen of the Management Board. The conditions of performance of function of a Management Board Member are defined by an Agreement on Performance of the Function with Member of Management Board in line with the relevant provisions of the Commercial Code, Banking Act No. 483/2001 Coll., adopted Remuneration Policies and other relevant legal regulations.
Management Board members in 2016 Alexander Resch
Chairman of Management Board and Chief Executive Officer
Elena Kohútiková
Management Board Member and Deputy Chief Executive Officer
Antonio Bergalio
Management Board Member and Executive Director of Finance, Planning
and Controlling Division
Jozef Kausich
Management Board Member and Executive Director of Corporate Banking Division
Peter Magala
Management Board Member and Executive Director of Risk Management Division
Peter Novák
Management Board Member and Executive Director of Operations and IT Division
Martin Techman
Management Board Member and Executive Director of Retail Banking Division
The curricula vitae published in the 2016 Annual Report V contain information on professional qualification of Supervisory Board members and Management Board members in the area of finance and banking, as well as information on their practical experience serving as assurance for an efficient management of the company in line with the Bank’s strategy in financial, environmental and social spheres. The Bank adopted the Compensation Policy of VÚB, a.s. (Bank’s Compensation Policy), which is compliant with the Compensation Policy of Intesa Sanpaolo, Banking Act No. 483/2001 and other relevant legal regulations. The aim of the Compensation Policy is to prevent excessively risk-oriented behaviour, behaviour aimed exclusively at reaching short-term results and resolve a potential conflict of interests. Its task is to align the individual targets of the Management Board members with the long-term interests of the VUB Group. Simultaneously, the individual performance of individual roles is evaluated under the Key Performance Indicators representing the sustainability targets as well as economic, financial, operational or risk-weighted indicators. The conditions of performance of function of a Management Board Member are defined by an Agreement on Performance of the Function with Member of Management Board in line with the relevant provisions of the Commercial Code, Banking Act No. 483/2001 Coll., adopted Remuneration Policies and other relevant legal regulations.
Management Board Committees
The Management Board establishes several specialized committees mainly in connection with risk management, namely the following: Corporate Credit Committee, Assets and Liabilities Committee (ALCO), Credit Risk Committee, Operational Risk Committee, New Product Committee, Project Portfolio Management Committee, Risk Receivables Management and Watch List Committee.
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Profile and Governance
Disclosure of Information and Transparency
1. The Bank applies strict rules in the area of insider dealing, and continually maintains and regularly updates a list of insiders. 2. Information about corporate governance is published on the VUB Bank’s web site Vwww.vub.sk in the “About VUB” section. Information for shareholders is available on the VUB Bank’s web site V in the “Information for Shareholders” section. 3. Members of the Management Board and Supervisory Board do not have any personal interest in the business activities of the Bank. The Bank strictly observes the provisions of the Banking Act No. 483/2001 Coll. (hereinafter Banking Act) as amended, applicable to the provision of deals to the Bank’s related parties. Under the Banking Act, the closing of such an active deal requires a unanimous consent of all the Management Board members based on a written analysis of the active deal concerned; a person with a personal interest in the given deal is expelled from a decision-making role. The Bank does not carry out any such deals with its related parties, which owing to their nature, purpose or risk, would not be performed with other clients. 4. The Bank abides by both the Corporate Governance Code for Slovakia and the rules of the Bratislava Stock Exchange governing disclosure of all substantial information. Observance of the mentioned regulations by the company ensures that all the shareholders and potential shareholders have access to information on financial standing, performance, ownership and management of the company, enabling them to take informed investment decisions. The Corporate Governance Code for Slovakia is available on the Central European Corporate Governance Association – CECGA web site V. The Bratislava Stock Exchange Rules are available on the Bratislava Stock Exchange web site V under the “BSSE Regulations” section. 5. The Company actively supports constructive dialogue with institutional investors and promptly informs all shareholders of General Meetings and notices via its web page not only in Slovak but also in English. In this manner, it enables both foreign and local investors to actively participate in the meetings. 6. The Bank applies changes arising from Act No. 566/2001 Coll. on Securities and Investment Services and on amendment and supplementation of certain acts (hereinafter “Securities Act“) at European level, MiFID directives (Markets in Financial Instruments Directive), and has proceeded in activities towards investor protection and the strengthening of client trust in provision of investment services. The main aim of the MiFID directive is to increase protection of financial consumer in the area of investment services. The essence of MiFID directive lies in the classification of clients according to their knowledge and experience in the area of investments with the aim of providing clients with a relevant level of protection, in the Bank’s obligation to act in the client’s best interest when executing his/her instructions in relation to financial tools (best execution), in higher requirements regarding market transparency and organization of the Bank as a securities trader, which should be ensured by internal control mechanisms and prevention of a conflict of interests. 7. The Bank continues providing payment services in compliance with the Payment Services Act, the so-called PSD (Payment Services Directive). This act aims to provide an equally high level of transparent information on payment services so that consumers could take business decisions and buy throughout the entire European Union. In the interest of transparency, harmonized requests are determined inevitable for arranging the provision of the necessary and sufficient information for the users of payment services, which are related to the Agreement on Provision of Payment Services and Payment Transactions. 8. The Bank continuously informs the investor public on deals concluded with quoted shares and bonds on its web page V.
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Key Areas in the Value Creation Process
Activities of all divisions of VUB Bank for 2016 were defined with the aim to proceed and already today create conditions for fulfilment of strategic targets derived from the targets of our parent bank Intesa Sanpaolo. On a long-term basis, we have been focusing on 3 key areas. By improving and addressing them in depth, the Bank is gaining positive reputation and a value added to its business: Client Satisfaction, Balance Sheet and Operating Profit, Employee Engagement.
The priorities for fulfilment of the Client Satisfaction target include stabilization of client portfolio, where we lay emphasis on improvement of the on-boarding process for new clients and their retention. We launch several activities in order to activate dormant clients, with whom we want to build a relation and work more efficiently. Acquisition and retention of each client who is active – cooperates with the Bank, who is interested in its activities and provides feedback – means for the Bank a possibility to develop. Monitoring of its behaviour gives the Bank an opportunity to define the direction it is supposed to head and facilitates the decision-making in the matters of setting up new rules. Engaged and correctly motivated employees are one of the key areas. On one hand, they understand the Bank’s strategy, are interested in the activities initiated by the Bank and takeover the basic set up into their activities. On the other hand, they understand the clients’ needs, work proactively with them, are able to propose them an efficient solution offered by the Bank and thus create space for business. In 2016, we concentrated on activities facilitating the employees’ work with clients in several aspects. We enhanced the sales processes and client service models, in 2017 we will continue to introduce useful sales tools and focus on fair evaluation of performance in relation to expectations. The third strategic area is the area of Balance Sheet and Operating Profit. In order to be able to grow and increase the value added of our daily business, we use the potential emerging as a result of changes in the Bank’s external as well as internal environment to the maximum extent possible. The external influences, employees’ ideas, incentives from our existing as well as potential clients deriving from the dialogue with clients present us with the opportunity to use the offered potential and move forward. We are bringing a relevant proposition of new products and/ or new opportunities to approach products and services. We have been working on maintaining our products and services attractive and we are bringing a loyalty scheme. We update propositions and review the pricing of all our key products. A product catalogue prepared in this way opens up the path of possibilities for a growing production and market share, acquisition of new clients but it simultaneously helps us to keep our current portfolio stable.
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24
Our Approach to Corporate Responsibility
Our Approach to Corporate Responsibility
Adoption of International Standards and Commitments
Global Compact VUB is a signatory of Global Compact V, a strategic initiative of the United Nations aimed at corporate responsibility. The worldwide recognized initiative is determined for companies and organizations, which decided to unify their mission and every-day work with ten principles in the area of human rights, labour conditions, environment and anti-corruption measures. This initiative helps companies not only to save funds and motivate employees, but at the same time it positively influences the entire economy and the society. Currently, the initiative associates more than 10,000 companies from 130 countries. The content of these principles fully corresponds with VUB’s values. Every year, VUB Bank releases an annual report in which it declares compliance with these principles and it was no different even in 2016. equATOR PRInCIPLeS Intesa Sanpaolo committed to observe the so-called Equator Principles V. They consist of a set of international rules for project financing designed by a group of international banks based on the policies of the International Finance Corporation. The principles are based on environmental and social standards of the World Bank and applied in project financing worth more than USD 10 million. The principles assist financial institutions in selecting projects with the aim of reducing social and environmental risks in project financing. They oblige the financing applicants to prepare a compulsory report on environmental impacts. In 2016, VUB Bank provided financing to one project, which was meeting the Equator Principles criteria. It was a power plant producing electricity from renewable sources (burning of sediments from waste water treatment plants). GLOBAL RePORTInG InITIATIVe The parent bank Intesa Sanpaolo is accredited as a GRI Organisational Stakeholder. VUB Bank supports the mission for development of international reporting guidelines for sustainable development, which are internationally recognized and highly trustworthy. The guidelines include principles defining the content of the report and ensure the quality of reported information. They also contain standards for publishing of information composed of performance indicators and reported parameters, whereas the materiality and significance of the individual elements are considered equal. Reporting under the Global Reporting Initiative (GRI) guidelines is a method of measurement and publishing information about responsibility against internal and external stakeholders compared with the objective of sustainable corporate development. The GRI reporting framework represents a generally accepted framework designed to report about the following areas: financial, social, environmental. In compiling its annual corporate responsibility report, VUB Bank follows the Sustainability Reporting Guidelines defined in the GRI guidelines. In 2016, the report was compiled already for the second time according to the G4 version of the international guidelines. In the previous years, the reporting level under the GRI methodology represented the B+ level. ISO 26000 ISO 26000 forms part of the international standards issued by ISO - International Organization for Standardization. ISO 26000 is the labelling of standards for corporate social responsibility and observance of ethical codes. VUB Bank began the process to obtain it in 2015 and in 2016 it implemented the necessary activities. The aim of the standard is to strengthen the organizations’ responsibility for their behaviour and thus increase their share in the permanently sustainable development. The standard contains methodological instructions for improvement in three key areas of responsibility (so-called Triple Bottom Line), namely: social responsibility, financial responsibility, environmental impacts. 26
Our Approach to Corporate Responsibility
Management Model and Strategy
Management Board
CEO
Corporate and Marketing Communication
Corporate Responsibility Sub-department
Corporate Responsibility Sub-department The sub-department is included in the Bank’s organizational structure as a part of Corporate and Marketing Department, which reports directly to the Chief Executive Officer. The sub-department is managed by the Corporate Responsibility Manager, who is simultaneously a member of the international corporate responsibility coordination group of the parent company Intesa Sanpaolo. The sub-department’s task is to coordinate activities related to VUB Bank’s corporate responsibility. The sub-department’s competencies include: implementation of corporate responsibility principles into VUB Bank’s activities, coordination of corporate responsibility in line with the Bank’s business strategy, monitoring of all corporate responsibility aspects in VUB Bank, reporting on national and international levels, compilation of annual corporate responsibility reports for local and international entities / organization, development of an internal dialogue and distribution of responsibility across the individual divisions of the Bank, setting of Bank’s targets and ambitions in the area of corporate responsibility, representation of the Bank in external dialogues with stakeholders and in expert panel forums, corporate philanthropy, VUB Foundation. Managerial decisions in the area of corporate responsibility are in the competence of the Chief Executive Officer, whereas all activities are regularly, on a quarterly basis, reported to the Bank’s Management Board. Codes and policies concerning corporate responsibility are always approved by the Management Board, which bears responsibility for performance in the financial, social and environmental areas.
27
Our Approach to Corporate Responsibility
Corporate Responsibility Strategy
Satisfied employees
Satisfied clients
Our aim
Satisfied shareholders
Satisfied public
Subsidiary banks implement into their activities identical values, policies and corporate responsibility principles as their parent bank Intesa Sanpaolo. The model that the parent bank applies is based on the premise that equally as the bank itself also all employees are owners of responsibility in their day-to-day activities. Important is a complex approach to sustainability and addressing the needs of Bank’s individual stakeholders, whether it is company owners, employees or clients. The result is implementation of common corporate responsibility policies and principles.
Reporting Methodology Structure and Content This report presents the information in the context of permanently sustainable development featuring topics in which VUB Bank shows a significant financial, environmental and social impact or where its decisions have impact on its stakeholders’ decisions. The report is divided into several chapters mapping individual areas of our impact on individual stakeholder groups and the impact of stakeholders on the Bank. The whole content is split into two main parts. The first part contains the Profile and Governance chapter describing VUB Bank’s profile, identity, governance system, mission, values and the Our Approach to Responsibility chapter is focused on corporate responsibility management and implementation of its principles. The second part of the report consists of chapters dedicated to individual stakeholder groups, i.e. those entities that are significantly impacted by VUB Bank’s activity and towards which we feel the greatest responsibility and simultaneously which have a significant impact on the Bank’s activity. These are clients, employees, shareholders, suppliers, community and environment. When identifying these categories, we took into consideration the corporate responsibility strategy of our parent bank Intesa Sanpaolo, which used the methodology under the AA1000 principles (in particular the AA1000 SES standard) issued by the London-based Accountability Institute. The report documents the results which the Bank achieved with respect to the objectives set out within its business plan. All data had been collected and processed by the members of the VUB corporate responsibility working group and the Corporate Social Responsibility Sub-department. The report documents exclusively the activities of VUB Bank, whereas the activities of its subsidiaries are not included. The only partial exception is the area of our responsibility towards the community, where the information and data related to the activities of VUB Foundation overlap. This procedure was chosen in case of activities that VUB Bank and its foundation performed and financed jointly. Annex to the report is an overview processed under the GRI guidelines containing the publishing of profile and management approach for all indicator categories. 28
Our Approach to Corporate Responsibility
Reporting Cycle
verification & communication
stakeholder mapping
elaboration of annual report
stakeholder dialogue
selection of indicators
expectations of stakeholders
target setting & action plan
selection of annual report topics
Compliance with Global Reporting Initiative Guidelines
The content was compiled under the Sustainability Reporting Guidelines of the fourth edition of the Global Reporting Initiative Edition. Reported are the Bank’s profile, strategy and management approach in individual areas and 46 indicators. The annex contains a transparent table listing the reported indicators and management approach for each indicator category. Compliance with the GRI guidelines was verified by the external verifier the Pontis Foundation, which is an organizational stakeholder of GRI in the Slovak Republic. The verifier’s statement is contained in the annex to this report. The verifier did not deal with verification of quantitative or qualitative data contained in this report.
Who Are Our Stakeholders Prioritization of Stakeholders There are many entities that VUB Bank influences by its activities and which influence VUB Bank. It is however inevitable to identify those that are the most important in this relation. A prioritization of stakeholders in form of a table overview helped us. Prioritization is a process when each stakeholder is evaluated by a binary sale (1-yes, 0-no) in terms of the stakeholder’s impact on the Bank and subsequently in terms of the Bank’s impact on the entity in the financial, social or environmental area. If the sum of evaluations for individual entities ranges between 3 to 6 points, we consider these entities important in relation to VUB Bank, whereas for the corporate responsibility report’s needs we call them “stakeholders“.
29
Our Approach to Corporate Responsibility
Overview of Stakeholder Prioritization Results Impact on VUB Bank Stakeholders
Impact of VUB Bank financial
social
environmental
Sum
financial
social
environmental
clients
1
1
1
1
1
1
6
employees
1
1
1
1
1
1
6
shareholders
1
0
0
1
1
0
3
suppliers
1
0
1
1
0
0
3
community
1
1
0
1
1
1
5
environment
1
0
0
1
0
1
3
media
1
0
0
0
0
0
1
government
1
0
1
0
0
0
2
self-administration
0
0
1
1
0
0
2
employee representatives
1
1
0
0
0
0
2
Stakeholders are individuals or groups influenced by the activities of VUB Bank, which they simultaneously influence as well. VUB Bank’s stakeholders are the following: clients, employees, shareholders, suppliers, community, environment. Although the interests, requirements, expectations and needs of stakeholders vary, they get interconnected and their impacts overlap. It applies that not every expectation can be met and not each of our stakeholders has an equal impact.
Impact of VUB Bank’s Stakeholders
Employees Suppliers
Clients
VUB Bank Shareholders
Community
Environment
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Our Approach to Corporate Responsibility
Each group of stakeholders is addressed in detail in separate chapters. VUB Bank is very much aware of the importance of strengthening the trust in relation to all stakeholders that are in contact with us – caring for clients and employees, supporting development of local communities, environmental protection and creating values for shareholders in a long-term horizon. Each of our stakeholders expresses the needs and expectations we want to fulfil. Communication is the most efficient tool for achieving this goal.
Dialogue with Stakeholders VUB Bank runs several activities targeting efficient communication and dialogue with the individual stakeholder groups. Communication and dialogue provide for a correct identification of needs and requirements of stakeholders also regarding the environment. We have a bilateral communication with our stakeholders: 1. by providing information using various communication channels (print, advertising, internet) and by means of annual reports (financial annual report, corporate responsibility report), 2. by monitoring their needs and satisfaction via internal and external surveys (client satisfaction survey, focus groups etc.). Main forms of dialogue with our stakeholders include the following: client satisfaction surveys, call centre, employee surveys and polls, websites, social networks, online media, discussion between employees and Bank’s management, press releases, articles, newsletters, e-mails, letters, telephone calls, personal meetings. All forms of dialogue and communication with stakeholders we engage in are specified in individual chapters of this report. The stakeholder dialogue results in measures and commitments that the Bank implements into its business and action plans. All these measures help us deliver the Bank’s mission, improve our services and products, as well as manage our relations with the Bank’s stakeholders in order to achieve an evenly balanced relation satisfying for both parties.
Materiality Analysis The 2016 Corporate Responsibility Report deals with aspects – topics, which are important for the stakeholders of VUB Bank. The topics were identified by means of the materiality analysis similarly as in the parent bank Intesa Sanpaolo. It is a process, which is structured according to the GRI G4 guidelines, main reference standard for reporting on permanently sustainable development. Material are considered aspects reflecting significant financial, social or environmental impacts of the organization or which could considerably influence the assessment and decisions of shareholders. The process recommended by the GRI Council includes three phases: IDENTIFICATION
SETTING OF PRIORITY TOPICS
CONFIRMATION (VALIDATION)
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Our Approach to Corporate Responsibility
1. Identification of Material Topics When identifying material topics, we drew on the analyses of internal and external documents with respect to megatrends that could impact VUB Bank such as: internal documentary sources including a strategic plan, top management communication, minutes from the general shareholders’ meeting, communication with shareholders, internal policies and inquiries against the Code of Ethics; external documentary sources including reference standards of reporting for sustainable development (G4); VUB Bank’s corporate responsibility reports; sources from national and international institutions (World Bank, World Economic Forum) for identification of general and special megatrends in the banking sector. 2. Setting of Priority Topics and Definition of Materiality Matrix Engagement of partners and process of dialogue form the core of the materiality analysis. In order to determine the priorities of the topics identified, we assess each of them from two perspectives. On one hand, we define what impact the given topic has on the Bank’s activities, and on the other, to what extent is the topic important for our stakeholders. These two perspectives represent two axes of the materiality matrix below. Materiality Matrix
Maintain liquidity and profitability
Provide innovative products & services
Impact on Bank’s Activities
Manage & develop human resources
Support business environment
4 Minimize impact on the environment
Prosperous corporate culture
Develop communities & improve the quality of life in communities
3
Transparent acting against suppliers
2 2
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3
4 Significance for Stakeholders
5
Our Approach to Corporate Responsibility
Priority topics that the corporate responsibility report is dealing with are defined according to the main target of individual partners as follows: Maintain liquidity and profitability (shareholders), Manage and develop human resources, prosperous corporate culture (employees), Provide innovative products and services, support of the business environment (clients), Minimize impact on the environment (environment), Develop communities and improve quality of life in communities (community), Transparent acting against suppliers (suppliers).
3. Matrix Validation In defining the scope of identified topics, we took into consideration all positive and also negative impacts on the stakeholders. For the sake of assessing a wider context of sustainability, we accounted for the risks and opportunities inherent in the given topic as well as the possibility to influence the strategy of VUB Bank in a long-term horizon.
Fulfilment of 2016 Targets and Commitments Fulfilment Status
Area
2016 Targets and Commitments
Clients
Improve our service to become “the best bank for the client“.
xxxx
Strengthen the dialogue with clients to understand their needs better, approach them and maximize their satisfaction.
xxxx
Use the findings from the client dialogue for new solutions, offer of relevant products and services, targeted servicing model and suitable distribution channel.
xxxx
Strengthen our position in modern banking. Focus on digital – mobile – paperless banking.
xxxx
Simplify sales processes and service.
xxxx
Build a trustworthy client – business specialist relation based on partnership and consulting – We understand business.
xxxx
Educate clients in the area of financial literacy.
xxxx
Build a long-term professional and positive relation with clients. Life-long guidance and consulting in the world of finance.
xxxx
Simplify internal regulations and reduce their number.
xxxx
Increase engagement of employees, strengthen their motivation and improve the offer of benefits.
xxxx
Introduce mentoring at the Head Office.
xxxx
Intensify the dialogue with employees in order to examine their satisfaction also in terms of training activities.
xxxx
Improve the balance between work and personal life of employees.
xxxx
Improve efficiency of communication and cooperation between the units inside the Bank and introduce new rules for communication culture.
xxxx
Introduce e-tenders for more procurement cases.
xxxx
Improve the efficiency of purchase by means of reducing the number of forms and increasing the number of electronic versions.
xxxx
Employees
Suppliers
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Our Approach to Corporate Responsibility
2016 Targets and Commitments
Environment
Introduce saving measures by replacing inefficient equipment by the ones classified in a better energy class.
xxxx
Membership in SKGBC – green buildings.
xxxx
Install efficient MaR technologies for heating systems with the aim of reducing gas consumption.
xxxx
Implement saving measures in the area of electricity, mainly in lighting.
xxxx
Improve efficiency of waste separation.
xxxx
Develop a new grant program aimed at community projects
xxxx
Ensure sustainability of foundation activities and programs
xxxx
Put a greater emphasis on the regions by supporting projects in financially weaker areas of Slovakia.
xxxx
Community
Legenda: x x x x splnené, projekt uzavretý
Fulfilment Status
Area
x x x x čiastočne splnené alebo v procese prípravy
x x x x prevažne splnené, projekt neuzavretý x x x x nesplnené
Business Ethics and Management of Sensitive Aspects The main pillars of our corporate responsibility are represented by ethics and transparency, which also our shareholders expect of us. VUB Bank introduced a Code of Ethics, which helps implementing ethics into our business activities if observed in the specific steps taken. The Code of Ethics is a set of principles, which have a strategic meaning for us and regulate the behaviour of our employees. Everybody, without any exception, is required to get familiarized with it. Observance of the Code of Ethics is continuously monitored and its breach penalized. This Code of Ethics is followed up by a corporate anti-corruption program with specific system and organizational measures, including an internal audit control system. The great responsibility that we as a bank bear towards all our stakeholders goes hand in hand with adherence to many legal regulations, which is supervised by various regulators. However, VUB Bank follows also such rules that are not imposed on us by any law or supervised by any authority. Despite the fact we consider such rules inevitable for our ethical and transparent acting. In the course of 2016, VUB Bank was a not party to any dispute or proceeding.
Internal and External Ethical Standards VUB Bank has continued to improve its corporate governance and in cooperation with its parent company Intesa Sanpaolo it has been setting up its own internal corporate responsibility rules significantly beyond the basic scope required by the Slovak legislation. Currently applicable internal and external regulations include: VUB Code of Ethics, Internal Code of Conduct, Gift Acceptance Policy, Environmental Policy, Non-Armament Policy, Query Resolution Policy (so-called Whistle Blower Policy), Policy for Management of Relations with Political Parties and Politically Engaged Parties, Clients Operating in Armament Industry and Risk Industries, Clients from Risk Countries and Transactions with Risk Countries in VUB Group, Codes for specific areas.
34
Our Approach to Corporate Responsibility
VUB Code of Ethics VUB Code of Ethics, one of the pillars of our corporate culture, derives from the Code of Ethics of Intesa Sanpaolo. It is a binding document, which represents a framework of ethical and moral values, observance of which is the basic prerequisite for an ethical and transparent growth and permanently sustainable development. It defines the principles of conduct in relation to all stakeholders of VUB Bank, which raise the level of standards. Each individual within the Bank must get familiar with them and adhere to them in order to have the trust of all parties involved. As a management tool and a part of a wider vision of the Group’s social and environmental responsibility, the Code of Ethics attributes the highest importance to all stakeholder relations. Electronic version of the document is published on V. Failure to observe the Code of Ethics can be penalized and its breaches can be reported at
[email protected] V. We commit to protect from retaliatory actions, discrimination or punishment those who will, in good faith, report breaches of the Code of Ethics. We will ensure utmost discreetness possible as long as the legislation in the given case does not stipulate otherwise. In 2016, there were three internal breaches of the Code of Ethics in an employee to employee relation. Three breaches of the Code of Ethics reported by clients pertained to improper conduct of employees with the clients in crisis situations. All complaints were duly investigated and the employees were imposed sanctions. Internal Code of Conduct The Code sets the basic principles of conduct by the company’s representatives, employees and external agents, who are obliged to execute their functions responsibly, honestly, fairly and professionally, promote the Bank and Group’s interests as well as take into consideration the interests of clients and shareholders. Therefore, execution of decision-making authorities and each business activity must reflect all values and principles contained in the Code. The parent company Intesa Sanpaolo and all Group’s companies promote respecting of applicable laws and regulations as well as compliance with general principles of conduct specified in the Code on all executive and operational levels. The Code must be observed in every geographical context, where Intesa Sanpaolo performs its activities with the aim of protecting property, integrity and reputation of each company and the entire group. The employees are informed of the principles by means of suitable trainings and information systems and their observance is monitored by an adequate system of internal control. Gift Acceptance Policy This internal policy derives from the Code of Ethics of VUB Bank and it forms its annex. It governs the principles and limitations to behaviour of Bank’s representatives and employees in accepting gifts. It also sets the limits and rules of behaviour in gift acceptance, handling of gifts and it introduces a Register of Accepted Gifts. Environmental Policy Environmental Policy represents a written commitment to environmental protection, which sets a mission and objectives in the area of environmental management. The policy defines VUB Group’s approach to prevention, management and where possible also reduction of direct and indirect environmental impacts it generates as a result of its business activity. Within its corporate responsibility, VUB Bank commits to minimize the impacts of its business activity and reduce the impacts of its activities on the environment also in cooperation with its stakeholders. Although we do not belong among significant direct polluters of the environment, we realize the issue of environmental pollution, thus we strive to reduce our potential negative impact on the environment to the lowest level possible. Non-Armament Policy VUB Bank took over this policy from the parent bank Intesa Sanpaolo. In accordance with values and principles of the Code of Ethics, it defines a ban on and transactions related to import and export of arms and armament systems. The Group members can assist clients in transactions concerning the existing intergovernmental agreements or other transactions for national armies, police or other armed forces of the state, which can be considered compatible with the spirit of an “unarmed bank – a bank non-supportive of arms“ based on an authorization by the competent unit of the Intesa Sanpaolo Group. Whistle-Blowing Policy AIf an employee of VUB Bank in performing his/her work duties identifies a breach of internal and/or legal regulations, based on this policy, he/she has the right and possibility to share his/her inquiry via
[email protected] V and
[email protected] V. The regulation also enables each Bank’s supplier or potential supplier in the procurement process or in connection with it to send an inquiry, including an anonymous inquiry, for the purpose of achieving rectification. The regulation governs the procedure and method of attending to the employee and client inquiries and the inquiries of suppliers and/or potential suppliers.
35
Our Approach to Corporate Responsibility
Policy for Management of Relations with Political Parties and Politically Engaged Parties, Clients Operating in Armament Industry and Risk Industries The policy stipulates mainly: • management of relations with political parties and politically engaged parties in the interest of preserving impar tiality and independence
The aim is to prevent potential reputational risk related to political parties and politically engaged persons by means of VUB’s Group impartial and independent acting. This means that companies, which are a part of VUB Group will approach the starting of business relations with political parties and politically engaged persons with utmost prudence.
management of relations with clients operating in the armament industry
In connection with preservation of values and principles outlined in the Code of Ethics, the main goal of this policy is to prevent that VUB Bank and its subsidiaries participate in the financing of activities and transactions concerning manufacturing of arms equipment as well as trading of this equipment for military purposes. management of relations with clients operating in risky business fields (industry risk)
Within VUB Group, clients and potential clients operating in the below industries / business fields are considered as risky: exchange offices, pawnbroker’s shops, bars, night clubs, casinos, gambling rooms with more than 3 gambling machines, security agencies, sex shops and pornography distributors, debt collecting agency, broker companies, betting offices. management of relations with clients and transactions from/to risk countries (country risk)
Pursuant to the requirements of the binding regulation and Intesa Sanpaolo regulations, clients and potential clients from selected countries are considered risky, as well as all types of transactions and payments from and to these countries. Codes for Specific Areas VUB Bank commits to observe also other codes defined for specific areas, such as: Consumer Protection Code of Ethics, European Agreement on a Voluntary Code of Conduct on Pre-Contractual Information for Home Loans, The European Code of Conduct on Home Loans (ESIS); in March 2016 this Code of Conduct was replaced
with the regulation of the Housing Loans Act No. 90/2016 Coll., Ethical Code of Advertising Practice.
In the corporate responsibility area, VUB Bank, as a member of VUB Group, observes the rules and policies of its parent company Intesa Sanpaolo. The full wording of binding regulations is available at www.vub.sk V and www.intesasanpaolo.com V.
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Our Approach to Corporate Responsibility
Confidential Data Processing and Client Protection Confidential Data Processing We respect client privacy and protect it. We handle our clients’ data with utmost care and principally with their awareness and consent pursuant to Personal Data Protection Act No. 122/2013 Coll. in the applicable version. On page V we post and continuously update the list of third parties that were provided data of our clients: List of VUB’s mediators in the area of personal data processing and parties provided personal data constituting a bank secret, List of third parties and recipients provided and made available personal data of clients and data constituting a bank secret. We have been intensely preparing also for the new legal framework brought by the General Data Protection Regulation No. 2016/679 (so-called GDPR). We consider the topic of privacy of our website users fundamental. Therefore, VUB Bank processes the so-called cookies transparently and in accordance with the legal requirements in the scope and for the purpose as stated in its document Principles of Cookies Processing in VÚB, a.s., (Cookies Policy) available at V. Client Protection in Payment Services Provision VUB Bank continues in application of effective measures aimed at a better awareness of clients in provision of payment services in connection with implementation of the new “PSD“ (Payment Services Directive) directive in Slovakia by means of the Payment Services Act. Simultaneously, the Bank keeps enhancing the knowledge of its employees through internal training activities as to guarantee the highest possible comfort in practical use of the payment services by its clients. Client Protection in Financial Mediation VUB Bank brought its activity into compliance with the requirements of the Act No. 186/2009 Coll. on Financial Mediation and Financial Advisory and on the Amendment and Supplementation of Certain Acts as amended, as to provide clients with the protection required by law. In the interest of securing a higher protection of client rights, in financial mediation VUB Bank is trying to approach each client as a non-professional client. The basic information on financial mediation, products subject to it and on affiliated and subordinated financial agents, with whom VUB Bank cooperates, is published on our Internet pages. Client Protection in Consumer Lending VUB Bank provides consumer loans in accordance with the Act No. 129/2010 Coll. on Consumer Loans and Other Loans for Consumers and on the Amendment and Supplementation of Certain Acts as amended. Investor Protection (MiFID) VUB keeps providing the highest possible level of protection not only to its retail clients, but also to clients included in the highest category of professional clients. VUB Bank adopted and has been constantly enhancing several measures aimed at investor protection and solving of investors’ complaints. This legal regulation is embedded in the directive on financial markets, the so-called “MiFID” (Markets in Financial Instruments Directive), implemented in the Securities Act. On the Bank’s website, our clients have access to documents that will help them understand the financial instruments and provision of investment services better. In connection with implementation of the Regulation No. 2014/65/EU (so-called “MiFID II“) and Regulation No. 600/2014 (so-called “MiFIR“), the Bank has intensively worked on harmonizing its processes and product portfolio with the demanding requirements that this legislation is bringing.
37
Our Approach to Corporate Responsibility
Conflict of Interest Policy VUB Bank commits to avoid a conflict between private interests of its employees and the interests of the Bank. The employees are liable to take all required measures in order to avoid a conflict of interest. In case a conflict of interest occurs, employees shall solve such a conflict to the benefit of the Bank. The employees may never misuse their connection with the Bank to promote their personal interests or harm the Bank’s reputation by their actions nor can they misuse their position or confidential information to prefer a job applicant or a person aiming to start a business relation with the Bank. The Bank evaluates the measures and procedures implemented to prevent, minimize and solve a potential conflict of interest on a regular basis. VUB Bank introduced measures for minimization of occurrence of an external conflict of interests in economic activities of employees and in transactions between the Bank and an employee or a person related to an employee. The employees should consult their working activities outside their main employment or involvement in business activities with their superior. The Bank has no objections against employees getting involved in activities outside their work as volunteers or otherwise provided that the activity does not obstruct performance of their regular work for the Bank or is not in conflict with internal rules of the Bank and the Intesa Sanpaolo Group. VUB also applies and adheres to special measures designed to prevent conflicts of interests in the area of investment services. Their main aim is to prevent conflicts of interests or cope with inevitable conflicts of interests as to prevent the risk of harming the clients’ interests. These measures are monitored and their efficiency is regularly evaluated. In relation with occurrence of a potential conflict of interest, VUB Bank declares that it will notify clients of the nature and source of the conflict prior to provision of an investment service or prior to performing an activity and in case of their provision or execution it will always prefer the clients’ interests to its own ones. In case of a conflict of interests between the clients themselves it will ensure an equal and fair treatment of all clients.
Anti-money Laundering and Anti-terrorism In the anti-money laundering (AML) and anti-terrorist financing, we are progressing in line with the Slovak and also the European legislation ensuring protection of our clients as well as of the Bank itself. In the banking sector, we are a stakeholder of the Financial Investigation Unit (FIU), which operatively evaluates the clients’ behaviour signals we report and is under a permanent supervision of the regulatory authority of the National Bank of Slovakia. Our activity in the area of Bank’s protection against money laundering or terrorist financing is intensifying and we dedicate this area greater attention. We do not want to support these negative phenomena not even indirectly by enabling financial flows by means of our products, services or in any connection with the Bank. Therefore, we follow strictly set up internal rules to prevent money-laundering and terrorist financing in form of detection of unusual business transactions. For this purpose, the Bank developed and implemented its own program of antimoney laundering and anti-terrorist financing activities deriving from: Slovak legislation, European legislation, international FATF recommendations, recommendations of The Basel Committee on Banking Supervision and Wolfsberg Principles, US Patriot Act, group rules of Intesa Sanpaolo in the area of anti-money laundering as well as against risky entities and countries. We apply Customer Due Diligence pursuant to the valid legislation and take into consideration the risk profile of individual clients. Within its organizational structure, the Bank defined a specialized unit charged with implementation, execution and coordination of activities related to protection of the Bank against its misuse for the purposes of money laundering or terrorist financing. The unit reports directly to the Deputy CEO and is responsible also for detection of unusual business transactions and cooperation with the respective regulatory authorities. It also ensures monitoring of all financial transactions as required by law and the international legislation. The unit’s activities include also evaluation of international payment transactions in real time constituting first-level prevention of connection between the bank sector and a sanctioned or risky person and/or country.
38
Our Approach to Corporate Responsibility
Discrimination Ban On all levels and in relation to all its stakeholders, VUB Bank observes the non-discrimination principles, which are firmly anchored in our Code of Ethics and system of values. One of VUB’s values is that “We do not discriminate We commit that we shall exclude from our actions any discrimination and shall respect differences based on sex, age, race, faith, political opinion, participation in unions, language skills or impairment.“ For more information on its application refer to the Employees chapter.V.
Corruption and Fraudulent Actions The Bank created a specialized unit dedicated to disclosure of frauds and corruption, which is a part of the Risk Management Division. It closely cooperates primarily with the Internal Audit and Control Department and the Compliance Department. All bank employees are informed of internal ethical standards and the zero tolerance principle while having access to the basic information on the steps that are necessary to take in case of any corruption or fraud suspicion. Since the Bank has an eminent interest in disclosing corruption and frauds, it proactively implemented the so-called Whistle Blower Policy. In 2016, the Bank incorporated into this policy also the requirements of Act No. 307/2014 Coll. on Certain Measures Related to Reporting of Anti-social Activities as amended. The Bank does not conceal the detected corruption and fraud cases from its employees, but on the contrary it decided to inform and educate its managers in order to constantly improve their work and eliminate shortcomings and errors in this area in the future. Due to this reason, the managers are informed of some cases that occurred in the past. Within initial trainings, all new hires in the retail network are given a special presentation on fraud and corruption risks including typical signs of a risky behaviour. The main objective of this training activity is to increase prevention and/or minimize occurrence of these cases.
Clearly Defined Approach and Principles VUB Bank has been fulfilling and committed to fulfil high moral and ethical standards built on clearly declared principles. All bank employees have been informed of these principles by means of various forms (distributed brochures, internal campaign, posting on Intranet). The principles are as follows: The Bank requires all its employees to act honestly, with integrity and protect sources and information in their work environment or for which they bear responsibility. The Bank committed to ensure that fraud and corruption risk would be reduced to the lowest level possible. These principles relate to all unusual cases involving employees as well as external consultants, suppliers, contractual stakeholders and/or any third party in a business relation with this organization. All employees must take decisions individually in line with the Bank’s interests. They must not act with the aim of gaining financial or other material advantage for themselves, their family or close ones Zero Tolerance VUB Bank clearly proclaims its absolute zero tolerance principle regarding corruption and frauds. All bank employees are informed about the following principles: The Bank shall not accept any form of fraudulent or corrupt acting, therefore each case will be thoroughly examined and relevant measures drawn from it. Each participation in a fraud or fraud attempt shall lead to dismissal and potential criminal charges. Necessary investigation shall be performed irrespective of the relation of the given person to this organization, his/her work position or employment duration.
39
Measures for Corruption and Fraud Reduction Internal Control System The Bank incorporated into its processes various control mechanisms in order to reduce the corruption and fraud risk to the minimum level possible. The Bank clearly sets the necessity of a control mechanism for each process, where corruption and fraud risk is imminent (e.g. verification of decisions, 4-eyes control, access rights management etc.). The internal control system consists of three levels: statutory, executive and control. Internal Audit The Bank established an internal audit and control unit, which is an independent supervising body (unit directly reporting to the Bank’s Supervisory Board, not to the Management Board). One of its main roles is to verify the functionality of internal control system, compliance with external and internal legislation including the Bank’s Code of Ethics, verification of internal control failures and internal fraud suspicions. In 2016, the Internal Audit and Control unit examined the internal control system in all corporate branches, in approximately half of the retail branches and it also carried out several specialized audits related to internal fraud and corruption risk. Verified were also all key processes in the Bank selected based on an annually prepared risk map. On the grounds of the risks identified within individual audits, the Bank immediately adopted corrective measures and set up a regular monitoring of such areas and if necessary notified the respective state bodies.
40
41
Our Partners
Clients
Clients Clients are one of our most important stakeholders and therefore they stand in the centre of our interest and represent our priority. It does not matter if the client is an individual or a large company; we treat every client equally responsibly and professionally. Our customer care strategy stands on three pillars: development of retail banking, development of small and medium enterprises segment, enhancing the quality of services, improvement of processes, innovation of Bank’s products and distribution channels. Our objective is: to be for our clients the number one choice, to be a strong, stable and safe bank, to increase our profitability in line with permanent sustainability and corporate responsibility.
Our Clients At the end of 2016, VUB Bank counted 1,135,457 clients (including the Prague branch). 2016
2015
2014
individual clients
1,124,993
1,192,207
1,216,568
corporate clients
10,464
10,597
11,470
1,135,457
1,202,804
1,228,038
Total
Individual Clients The focus of our interest lies in retail banking, where we provide services to nearly 1.1 million clients: citizens – individuals, small businesses and sole traders, freelancers, non-governmental organizations. In many areas of banking, we continue to hold a significant market position for this clientele. We realize the importance of client base and therefore starting from 2016 we started applying the so-called segment approach involving targeted activities used to focus on building a long-term and positive relation with clients. In case of standard clients, we look at their needs throughout their entire life cycle and we become their guide, who is able to find solutions to their everyday problems. Affluent clients are treated by a personal banker, who provides them with consultancy and professional approach in managing the client’s assets. In our Bank, entrepreneurs and small businesses find a partner in form of a business specialist, who will provide them with solutions to various questions arising in connection with their businesses. Individual Clients – Classification by Age 2016
2015
2014
0 – 25
290,261
157,917
168,530
26 – 40
222,287
337,631
350,849
41– 60
462,642
409,000
416,372
> 61
149,803
287,659
280,817
The average age of a VUB client in 2016 was 46.01 years, i.e. approximately the same as in the previous period. Individual Clients – Average Age
43
2016
2015
2014
46,01
46.38
45.89
Clients
The average duration of a client’s relationship with the Bank in 2016 was 12.15 years, which is a slight decrease against the previous period. Individual Clients – Average Relationship Duration 2016
2015
2014
12.15
12.78
12.07
2016
2015
2014
66,798
67,119
75,823
2 - 4 years
119,767
125,455
141,365
5 - 7 years
133,626
143,077
154,210
8 - 10 years
134,130
145,815
163,182
over 10 years
670,672
710,741
681,988
Individual Clients – Classification by Relationship Duration less than 1 year
Corporate Clients In VUB Bank, a significant segment is represented by corporate clients. We provide them our services connected with professional and personal approach in 32 corporate branches across all of Slovakia. We leverage our local expertise connected with an international know-how and we offer products aimed at contribution to permanent sustainability of the environment. Our clients include: small and medium enterprises, large companies, towns and municipalities, farmers, associations of flat and non-residential premises owners and owners of flats and non-residential premises administered by an administrator.
Municipalities (Self-administrations) VUB Bank has been a long-term and strong partner also in the segment of self-administrations. We offer them an entire range of specialized products such as overdraft, revolving or investment loan from the self-administration product range. To a significant extent, we participate in co-financing of projects supported from EU funds aimed at developing the infrastructure of towns, municipalities and regions. With their options, the loans offer an optimal and flexible solution for all current program calls of EU funds, which are presently the prevailing form of financing municipality investment activities.
Closer to Clients Branch Network VUB Bank provides its products and services in Slovakia by means of the second largest network of retail branches. As at 31/12/2016, the clients had 232 points of sale at their disposal. Number of Points of Sale 2016
2015
2014
189
193
196
Mortgage centres
11
11
11
Magnifica centres
8
0
0
23
32
32
1
1
1
232
237
240
Retail branches
Corporate branches Prague Total
44
Clients
All VUB Bank branches and their points of sale are available to clients 5 days a week. In each regional town, there is at least one retail branch operating 7 days a week and 10 hours a day. In 2016, the Bank had 21 of such sales points (20 retail branches and 1 Magnifica Centre). We strive to make our branches easily available to people with physical disabilities. All newly opened sales points dispose of a barrier-free access and when reconstructing older sales points we always make sure they are barrierfree. Graph – Number of Barrier-free Branches 2016
186
2015
183
2014
181
Kontakt Centre Also in 2016, the Kontakt Centre continued to deliver the Bank’s strategy of being close to the clients by means of modern electronic banking. The client chooses how he/she wants to communicate with the Bank. The operators are ready to help clients on the telephone, by e-mail, web chat or Facebook. The nonstop banking services provide the clients not only with a 24-hour support and a possibility to perform active transactions and operations, but during the telephone call with a Kontakt service operator they can also borrow money in a fast and simple way in form of a pre-approved loan or conclude various types of insurance policies. All this without even visiting a branch or printing any paper documentation in order to save the clients’ time and costs. The year-on-year business performance of the VUB Bank’s Kontakt Centre (19% increase of client inquiries and 8,800 deals concluded) confirms that clients appreciate this sales channel. Besides the direct sale, within the “service-to-sales“ approach, we mediated for the clients more than 12,000 business meetings at our branches and contributed to conclusion of further new deals.
Automatic Teller Machines By number of ATMs, VUB Bank ranks second within Slovakia. As at 31/12/2016, VUB Bank operated 575 ATMs. Graph – Number of ATMs 2016
575
2015
572
2014
572
In 2016, we extended the number of ATMs with the depositing module. They are located in the self-servicing zones and besides the standard cash withdrawal they enable clients to make also deposits of banknotes independently of the branch’s opening hours. They are installed mainly in branches in big shopping centres and in branches where clients make numerous deposits. Year Number of ATMs with depositing option
2016
2015
2014
18
11
5
POS Payment Terminals In Slovakia the number of payment terminals supporting contactless technology grows each year. This technology allows to pay for goods and services quickly and safely. Moreover, following an agreement with selected merchants, VUB Bank allows to perform on its terminals also additional services such as invoice payment or recharging of prepaid SIM cards of mobile operators. Throughout the entire year 2016, in the network of VUB Bank payment terminals payment card holders performed transactions with a turnover of EUR 966 mil. Coverage by Contactless Terminals of VUB Bank Year % of number of VUB terminals
45
2016
2015
2014
73
63
42
Clients
The trend of shifting transactions from the previously popular ATMs in favour of cashless payments executed via payment terminals or online continues, whereas in 2016 as much as 74% of total number of card transactions were performed in this manner. Cashless Payments Year % of total number of payments
2016
2015
74
66
Security Security and Personal Data Protection Protection of confidential data and privacy of our clients is commonplace for us. All information and documents about our clients, which are not publicly accessible, mainly the information on clients’ transactions with the Bank and on account balances, are subject to bank secret.
Branch Security All VUB Bank branches are, in compliance with the relevant regulations, equipped with a security camera system and other security equipment. The basic security rule at branches is that security and protection of our clients’ lives and health come always before the protection of the Bank’s property.
Digital Security In order to increase security, the ATMs are installed an anti-skimming protection, which prevents to copy data from the card’s magnetic stripe. All new ATMs are also equipped with a video camera surveillance system.
ATM Security In order to increase security, the ATMs are installed an anti-skimming protection, which prevents to copy data from the card’s magnetic stripe. All new ATMs are also equipped with a video camera surveillance system.
Dialogue with Customers We realize that not only numbers, graphs, volumes, but also the "client satisfaction" category are the indicator of our success. Its essence is quality service and effort to continually improvement based on communication and feedbacks.
Customer Care Department and Client Inquiry Solving We realize that client satisfaction is the indicator of our success. A separate department dedicated to this area has been operational in VUB Bank since 2008. The aim of the Customer Care Department is to identify the reasons for clients’ dissatisfaction and initiate proposals for changes to increase and strengthen the client satisfaction and loyalty. Based on clients’ feedback and its analysis we try to achieve changes in the processes, product parameters, sales and post-sale services and also in communication with clients. The department’s effort is to simultaneously provide an efficient and constructive feedback to clients and to the Bank as well. After consultation with the expert units of the Bank it elaborates a list of tasks and actions and monitors their implementation in order to achieve the set target. The Customer Care Department consists of two separate sub-departments. The Client Inquiry Solving Sub-department provides in the Bank for methodology of solving complaints, requests and claims; it monitors them and ensures their handling. Based on them, it elaborates action plans for improvement of client satisfaction.
46
Clients
In case clients want to submit an inquiry to VUB Bank (request, claim or complaint), they can do so by one of the following ways: orally or in writing at the sales points – Bank’s branches, in writing sent to the address: VÚB, a.s., Client Inquiry Solving Sub-department, Mlynské nivy 1, 829 90 Brati-
slava, Slovakia, by telephone via the Kontakt service at the telephone number 0850 123 000; from abroad at the telephone
number +421 2 48 555 970, by filling in a contact form at www.vub.sk V.
Graph – Number of Queries 2016
2015
2014
12,861
12,611
13,074
Feedback from our clients can be positive and also negative. Praise from clients always pleases us and therefore we have developed an initiative in the Bank to gather all praising reactions comments in one place. Such comments are forwarded also directly to the concerned employee, his/her superiors and we publish them on our corporate Intranet as positive examples and motivation. However, not all client queries are positive. All complaints, requests and claims are recorded in the banking system and reply to them according to the valid legislation. Based on resolution and analysis of those less pleasing queries, the Bank changed many of its processes and internal settings. We are therefore very grateful for each feedback we obtain from our clients. Despite the age of modern technologies more than 60% of clients still prefer personal contact in branch. Input Channels for Receipt of Inquiries 2016*
%
2015*
%
2014*
%
Branch network (in person)
8,077
66.91
7,110
60.17
7,665
63.56
Kontakt Centre (by telephone)
3,383
28.02
4,138
35.02
3,862
32.03
Bank’s Head Office (in writing)
612
5.07
569
4.81
532
4.41
* excluding the requests The average period of client query solving in VUB Bank in 2016 was 10.6 days, i.e. less than in the previous years. Graph: Development of Client Queries Received (excl. requests) and Their Solving Period 11,3 12 200
11,50
12 000
11,00
11,2
11 800
10,6
11 600
10,00 8,50
11 400
9,00
11 200
8,50
11 000 Number of Queries
10,50
2014
2015
2016
8,00 Time in days
Our clients addressed some queries directly to the bank ombudsman of the Slovak Republic. In 2016, there were 20 such cases.
47
Clients
The most frequent inquiries submitted by our clients include complaints related to transactions by payment cards or online, using an ATM or by payment at a merchant. Given the total huge number of card transactions performed on a daily basis this fact is expected. The Quality Management and Integration Sub-department performs the analysis of results gathered in satisfaction surveys, monitoring of development of satisfaction indicators, assessment of retail branches’ quality, it communicates with clients and replies to their evaluations.
Client Experience and Its Measurement As a pro-client oriented company we are aware of the crucial meaning of client satisfaction for company’s subsequent success and development. Therefore, we are currently paying due attention to the matter and learn from our clients about their feedback on satisfaction with us by various forms:
Satisfaction Surveys Net Promoter Score In 2016, VUB introduced evaluation of retail branches by the Net Promoter Score (NPS) methodology. This is the measurement of clients’ loyalty and simultaneously a method of gathering and using their feedback for the purpose of improving the branch’s performance. The clients are contacted by the Kontakt Centre within a week from their visit to the branch. In the survey we addressed 90,977 clients. Thereof 48,582 clients (53.40% success rate for completing a telephone questionnaire) provided us with feedback and picture of how they perceive our individual retail branches. The importance of client satisfaction is confirmed also by the fact that the NPS values of individual branches became a part of the compensation system of their employees.
Benchmark In cooperation with the parent company Intesa Sanpaolo, in 2016 we conducted two surveys to measure the satisfaction of retail clients (Benchmark Survey and Internal Survey). In the Benchmark survey, the clients of 5 banks (VÚB banka, Slovenská sporiteľňa, Tatra banka, ČSOB, Prima banka Slovensko) evaluated their satisfaction with bank products and services. In the Internal Survey, which followed 4 months after the benchmark one, we were addressing only clients of VUB (in total 1,495 clients). The resulting NPS of 17.3 is a lower value compared to the previous level.
Staffino Staffino is an application determined for smartphones (feedback can be provided also through the website V), which is used by clients to leave positive feedback, but also comments related to our branches, employees or products. We respond to each client feedback within 24 hours (on business days). Following a successful pilot operation in 2015, in 2016 we included all retail branches into evaluation by means of this application. This new opportunity for leaving feedback was embraced by 4,037 clients, who sent 6,916 evaluations. Thereof 96.6% were praises and thank-you notes. The clients highlighted mainly the professionalism of our employees, their willingness and forthcoming approach. Graph: Total Evaluations via Staffino Application
6 916
Thank-you notes Comments
48
Clients
Clients Week In 2016, we continued with successful activities from previous years. It has become a nice and pleasant tradition in September to organize a “Clients Day“ for our clients, which is celebrated within the entire international group Intesa Sanpaolo. However, one day is not enough to THANK all clients for inspiring, motivating and trusting us. Therefore, in 2016 we decided to dedicate our clients an entire week. During this week we prepared also special benefits for selected products and surprises in form of small presents for the clients. They also had the opportunity to participate in a competition to win attractive prizes. Each client who evaluated us during this week via the Staffino application, was included into drawing lots for interesting prizes.
Branch Quality Evaluation In 2006, we introduced a system of compensation for branches based on strict qualitative parameters. Within these criteria we do not monitor the volume of products sold, but rather the parameters concerning the quality of client servicing and quality of sales, consultancy and qualified assistance to the client. It helps us identify the problematic areas of individual branches and work on constant improvement. Our aim is to determine the branch’s strengths and weaknesses, the method of increasing the quality of a specific branch in order to increase the number of satisfied clients.
Responsible Products and Services VUB Bank is dedicated to an ongoing development of new products and innovations of its existing products and services. We try to accommodate our clients in the best way possible and save their time.
More Efficient Processes In 2016, we managed to significantly simplify the client service processes in branches. We introduced digital processing, which helped us to considerably reduce the administrative activities in the branches. We launched into practice the principle Print only what you need. We ask clients in what form they want to obtain non-personalized documents (e.g. business terms and conditions, price list) and we personally convince them to use electronic means such as Internet Banking or e-mail. We also achieved a significant acceleration in issuing various bank confirmations: the client receives it immediately on request in the branch without having to wait for several days / weeks. We considerably shortened the time necessary to block stolen / lost payment cards: the client will solve his/her request in 1-2 minutes instead of the original 20-40 minutes. We increased the competencies of branch managers in the area of business exceptions and strengthened the branch’s competencies in relation to the client and accelerated the process of request processing.
Products Honoured with Expert Awards Expert awards by card companies MasterCard, Visa and Golden Coin (Zlatá minca): MasterCard – Product of the Year 2016 In July 2016, VUB Bank brought to the market unique contactless corporate credit cards MasterCard. These cards separate the corporate expenses from the private ones and in case of corporate cards they give a simple and detailed overview. Moreover, holders of the MasterCard Business World credit card get automatic cash back as much as 0.5% from each card payment regardless of whether they pay in a regular store or online. Along with the corporate credit cards MasterCard Business World or MasterCard Business Gold, clients will automatically get also ELITE cards that they will appreciate mainly on travels. The cardholder will have free access to VIP airport halls at international airports in Vienna and Prague including the cardholder’s co-travellers. MasterCard – 2016 Most Effective Marketing Campaigns During the entire year of 2016, VUB Bank was preparing activities for payment card holders. These were campaigns aimed at supporting the use of payment cards at home or abroad and at the same time sufficient benefit for clients when paying by card either in form of a bonus for purchase or discount from a merchant or an opportunity to participate in a competition.
49
Clients
For the initiative and campaign prepared for the holders of credit cards MasterCard during the entire year of 2016, VUB was honoured with the award 2016 MasterCard Most Effective Marketing Campaigns. Visa – Best Issuer 2016 At the end of 2016, VUB Bank collected an award also from Visa, namely in the Best Issuer category for 2016. At present, VUB counts more than 750 thous. payment cards issued with the Visa logo, including also the innovative products such as payment sticker and mobile payments by means of the Wave2Pay application.
VUB’s Modern Banking The purpose of innovations is to simplify the lives of clients by bringing them useful services.
2016 Digital Sales The online world surrounds also our client base – we keep up with the modern society and a growing competition by launching the offer of other products and services in the Internet and mobile banking (loan products, investments) and by simplifying the processes for getting the products online. Since we care to accommodate the increasing requests of our clients and respect their complexity in the nowadays’ fast-paced era, we maintain our positive relation with clients also by means of solutions which simplify their money handling without putting safety at stake when performing payments or transactions. We have been constantly developing innovative products for our clients and expanding the options of our mobile and Internet banking by launching numerous functionalities that facilitate clients’ finance management and enable them to keep track of their liabilities. In 2016, we successfully launched the following initiatives: online sale of products and services, digitalization of branch network (wifi, SignPady, tablets), set up of paperless processes for sale and transactions, simplification of authentication when communicating with the Kontakt Centre, building of the network of Magnifica centres for affluent clients, expansion of competencies in the area of investments and assurance, building of the network of competence centres within the small business segment, implementation of the new CRM tool for relevant and efficient communication with clients, product improvements, creation of segment service models (service models for a targeted work with clients from various segments), re-organization of the retail business network and creation of new competencies.
Wifi Connection In 2016, we reached a complete Internet coverage in all our branches. On the entrance door, each VUB branch has a “Free WiFi“ label. The visitors can get online simply, quickly and browse the Internet free of charge while waiting for attendance. In 2016, VUB’s WiFi recorded more than approx. 500 connected visitors on a daily basis, which for the entire year translates into 72,684 persons, who used more than 6.6 TB of data. Other benefits: clients are able to download, install and test our mobile applications directly in our branches, employees have the opportunity to show clients how our digital banking works in practice, increasing satisfaction of our clients in branches, improving our services.
ID Scanner In 2016, in 6 branches VUB Bank launched a pilot project for scanning documents by means of ID scanners. The ID scanner facilitates the work of branch employees, since it is not necessary to re-type all data from the ID document into the Bank’s systems. The ID scanner will read all data and insert them automatically into the systems. It contains a functionality for verification of document authenticity, which reduces the probability of accepting false documents. Branch employees are thus saving time and are able to maintain a closer contact with the client.
50
Clients
SignPads Introduction of SignPads is part of the VUB Bank’s strategy to make processes more efficient by implementing state-of-the-art digital trends, minimize paper bureaucracy and also to a great extent save the environment. SignPad is a device similar to a tablet, which is placed at the salesperson’s workplace and serves for digital signing of documents. After signing, the client receives the documentation in electronic form directly to his/her Internet banking. By means of SignPad, it is possible to provide clients with also all types of all-purpose loans, VUB account, credit cards and authorized overdraft. At the end of 2016, 734 SignPads were installed in 129 branches. Every week, these devices served for concluding approximately 35% of all deals. In addition to their sales functionality, SignPads fulfil also educating and marketing function, since clients have the possibility to get more information on the banking services and products. The use of SignPads significantly saves also the environment. For example, in case of a classical sale of a current account it was necessary to print out (together for the Bank and the client) as many as 100 pages of documents. In 2016, VUB Bank sold 1,883 current accounts via SignPads, which represents as many as 188,300 saved sheets of paper. 376 spared packages of paper are three large adult trees
Contactless Technologies In 2016, VUB Bank continued issuing cards supporting contactless technology, which increases the comfort and speed of payments. To date, the Bank has issued for clients nearly 755,000 contactless cards. Number of Contactless Cards of VUB Bank Year Number of Cards % of Total Number of Cards
51
2016
2015
2014
755,070
677,286
528,981
60
52
41
Clients
Mobile Payments Via Wave2Pay Application The digitalization trend in Slovakia is progressing and we follow up on this trend by expanding our offer of top-notch and safe options for executing payments. This is a mobile debit payment card and it is a part of the Wave2Pay mobile application. Its holder is able to perform purchases of goods and services by means of a mobile telephone. It offers clients an innovative, fast and comfortable way of paying for goods and services. The Wave2Pay mobile application changed the smartphones of VUB clients and allowed them to pay easily by attaching the telephone to a POS terminal reader. It is a fast, simple, modern and what is more important a safe way of paying. At the end of 2016, more than 6,000 mobile cards with enabled Wave2Pay mobile payments application were issued.
Payment Sticker The clients of VUB Bank can pay by mobile also if their telephone does not support this technology. All they need to get is the payment sticker VISA Inspire Wave 2 Pay, which they would stick e.g. on their smartphone or key ring and use it to pay for goods and services anywhere where contactless payments are accepted. At the end of 2016, we had more than 33,000 holders of payment stickers. Online Credit Card Sale A novelty for our existing and also new clients (Bank’s non-clients until now) was the launching of an online sale of credit card – without the need of branch visit. Ever more clients prefer precisely such “purchase“ and getting services or products. Clients are able to simply request issuance of credit card from the comfort of their homes. Online Banking = Internet and Mobile Banking Electronic channels Internet and mobile banking are available for all types of computers and mobile devices, whether it is a smartphone or a classical mobile phone with an Internet browser regardless of the type of operational system. The provide clients with a high user comfort, modern design, new functionalities and interesting novelties. Besides the classical functions such as payment sending, overview of incomes and expenses on accounts, payment card transactions and other information on banking products, we offer clients a possibility to get several products online without having to visit a branch. VUB account can be opened through Internet Banking within a few minutes. The saving account can be opened simply even through the mobile application VUB Mobile Banking. In case a client is interested in obligatory contractual insurance or he/she wants to get insured for the event of long-term work incapacity, he/she is able to arrange these insurance plans also online through Internet Banking. Clients holding the MasterCard credit card can send a payment from their cards to a voluntary bank account, so the funds from the card are available to them at any time. In the mobile application, we simplified input of payments and payment of invoices for clients by means of QR codes. The application offers the function of generating a payment QR code, which contains the payment data or the option to upload a QR code image into the mobile application, which will automatically fill the payment data into the payment order. Mobile device will be thus fully sufficient for payment of invoices. The number of clients using online banking has been constantly growing, which is confirmed also by these data: more than 60% of our clients use electronic channels to manage their finances, 30% of users of digital banking use their mobile devices to access the banking service, the number of active users of the VUB Mobile Banking service for 2016 doubled.
Personalization of Electronic Banking Channels We try to adapt our online banking as much as possible to the needs of our clients and react to their inquiries and comments. Therefore, we added a function that will enable them to adjust electronic channels according to their preferences. Following the categorization of transactions on the account, we added to the Internet Banking classification of credit card payments into payment categories with the option of creating own categories. Another innovation is the option to choose in the account movements which columns the client wants to be displayed and in what sequence. This helps all to see only the data they need.
52
Clients
E-Statements One of the activities in the area of simplification of banking processes is delivery of statements to clients by electronic channels. For making the clients’ transition from paper statements to electronically available statements, towards the end of the year in Internet Banking we brought a function, which will set up statement delivery to Internet Banking with just one click and at the same time cancel all paper statements. In 2 months, this function was used by more than 40,000 clients. Besides the ecological solution, the main benefit for clients is that they have their statements available at any time and they serve as a valid tax voucher and all they need to get it is a computer with Internet connection. Easier Contact Data Updating In case a client changed his/her telephone number, e-mail address or moved, he/she is able to change this data in the Internet Banking at once by a single click for all his/her products and services. The updating of Bank’s client contact data is thus simplified and accelerated.
Financial Inclusion VUB Bank also thinks of vulnerable or various disadvantaged groups of citizens. Products developed especially for these groups are, for example, a Senior Account, a Good Angel charity debit card, preferential loans and accounts for students or Mortgage for young people. In 2016, VUB Bank has brought to its clients the following responsible products and services:
Products for Seniors Senior Account It is an account for clients in pensioner age involving a convenient package of services. It is adjusted to their needs and requirements and offers all that pensioners normally need along with their current accounts: a free-of-charge payment card, a more favourable account maintenance fee, payments via payment card at merchants free of charge, Internet Banking service, regular account statement by mail, free set up of standing orders and direct debits. In addition, last year in this category of clients we even modified the price for individual products.
Products for the Young In 2016, VUB Bank offered several types of convenient products and services for the young. VUB Account for the Young One of the ways how to teach a child to manage money is to open an account for him/her. Along with it the child or student can get all modern services. Besides Internet Banking, very popular also in this age category is Mobile Banking. A commonplace is the issuance of a payment card with the contactless payment option or online payment. The parents can have a constant control over the account. Account maintenance for children and students is free of charge. This is an attempt to make this product available to the widest group of clients in this category possible and thus support their financial literacy. In 2016, within the launch of the Account for the Young, we also prepared a big summer competition for 1,500 free of charge 3-month accesses to Spotify Premium. The clients were gradually communicated 5 competition steps, by which we were teaching them to use various banking services related with the VUB accounts. For each task fulfilled they also received a reward from our partners in this campaign (e.g. 20% discount for purchase at www.zoot.sk or 0.5 l drink to the menu in Subway for free). The campaign included also a series of funny videos, which were presenting common banking services to the youth in sketches. Mortgage for the Young A more favourable, subsidized mortgage for the young up to 35 years old, who need to invest into a purchase, construction, reconstruction or modernization of a real estate. The advantage of this product is a lower instalment and a possibility to get a higher loan amount. The title to the interest benefit valid for the period of first five years from the granting of the mortgage was for those whose gross average income was up to EUR 1,153. The amount of the benefit is 3%, thereof 2% is subsidized by the state and 1% by the Bank. In addition to financial savings, the mortgage for the young allows to reduce instalments to a half or defer the repayment of principal for a period of two years in case of child birth. 53
Clients
In 2016, we granted over 5,000 convenient mortgages for the young in the volume of more than EUR 330 million. Mortgages for the Young Rok Volume of Loans Granted in EUR Number of Mortgages Granted
2016
2015
2014
334,473,396
271,723,487
220,000,000
5,051
4,389
4,000
Support of Third Sector Good Angel Good Angel Maestro Charity Debit Card. Half a percent of all the payments made by the card goes to the account of the non-profit organization Dobrý anjel (Good Angel), which helps oncologic patients and families with gravelly ill children. This money is not donated by the cardholder, but by VUB Bank on his/her behalf. The beneficiaries of support from the system were 7,739 families. Year Number of Good Angel cards issued Donation from VUB in euro (% of payments performed by client cards)*
2016
2015
2014
46,257
40,267
36,797
306,757
385,573
315,981
* Starting from 2016, due to legislative reasons the 1% of payments performed by client cards, valid until then, was reduced to 0.5%.
In 2016, the long-term cooperation between the Bank and the Good Angel non-profit organization was extended by several forms of help via Internet Banking. The clients have an option to set up a rounding of their payments to a whole 1 euro in favour of the Good Angel or to set up a standing order to send payments to Good Angel. Via Internet Banking they can also ask for a debit payment card, by means of which the Bank contributes to the Good Angel account on client’s behalf at each payment. (more information in the Community chapter)
Supporting Business Running a business in Slovakia is not easy at all. Nearly every entrepreneur or sole trader would confirm that. In order to develop a business or even for its common operation, a certain input capital is needed. Contributions to the state system are high, getting one’s invoices paid is sometimes demanding and if this is accompanied by a purchase, reconstruction or modernization of manufacturing equipment, the entrepreneur simply needs to borrow funds. Start-up entrepreneurs and sole traders face even bigger challenges when applying for a loan. They are not in business yet, they are in need of a stable income and they must convince the bank that their business plan would be profitable in the future. Therefore, VUB Bank offers a possibility to choose from several types of loans designated for entrepreneurs and small businesses. New Service for Clients – Entrepreneurs A new form of depositing cash at a branch by means of a one-off security package – safe bag, which helps clients to hand over cash without having to wait at a branch and without sorting the cash. The client can dispose of the cash immediately. Profi Loan for Start-Up Entrepreneurs Profi Loan is a bank product determined mainly for small and medium entrepreneurs and to support start-ups. It features a simplified process of approval and document submission and it is provided in the minimum amount of EUR 1,600 and maximum amount of EUR 332,000. It serves to finance business needs without the necessity to document the purpose of funds granted, requiring the minimum amount of documents. The application is assessed within 24 hours from submission of documents and the client has the option to choose also insurance of loan repayment capability. In 2016, VUB Bank granted Profi Loans in the total volume of nearly EUR 135 million. Year Volume of Granted Loans in EUR
2016
2015
2014
134,635,341
125,894,210
109,358,302
54
Clients
Profi Loan with Financial Guarantee A starting entrepreneur, who is able to document the required collateral can be provided a Profi Loan with Financial Guarantee. This is an all-purpose loan with the maximum maturity period up to 8 years, which will provide for the financing of client’s working capital or entrepreneurial investment needs. It is granted without documenting the income and without a required minimum period in business, available in instalment or overdraft form. Application and documents proving origination of a pledge are sufficient to arrange it. The funds used as a guarantee do not need to be of the entrepreneur’s property; often the owner is for example a family member. Business Credit Line Starting from 2016, the existing clients of VUB using the business account are in an easier situation. Already after 6 month of account using, the Bank will provide them with a pre-approved Business Credit Line. The amount of pre-approved loan depends on account movements and also use of further products and services of the Bank. This line gives the client the opportunity to virtually immediately obtain funds for development of his/her business in the amount from EUR 1,600 to 70,000 without having to submit any financial documents. The loan is provided in an instalment or overdraft form with a maturity period of up to 5 years. Business Investment Line The Bank offers its clients also a so-called Business Investment Line up to the amount of EUR 50,000, which represents a pre-approved leasing limit. This limit can be used for financing of a motor vehicle, machines, equipment or technologies. Profi Loan It is suitable for the financing of short-term and medium-term working capital needs of a client related to growing business activities. It is an all-purpose loan, which can be granted up to the amount of EUR 170,000 in form of an overdraft or instalment loan with a maturity period of up to 5 years. The application is assessed already within 24 hours from submission of documents. In 2016, VUB Bank granted Profi Loans in the total volume of over EUR 142 million. Year Volume of Loans Granted in EUR
2016
2015
2014
142,405,830
125,894,210
109,358,302
Profi Mortgage Loan For the purposes of investment financing, the Bank may provide the clients with a Profi Mortgage Loan, which is secured by a real estate in the maximum amount of EUR 500,000 with a maturity period of up to 20 years. Profi Mortgage Loan with Submission of Financial Statements – serves for investment into immovable assets determined for business, tangible and intangible assets, repayment of existing loans. At the same time, the client can use 30% of the amount of the provided loan without the need to document the loan purpose. Purpose-Bound Profi Mortgage without Submission of Financial Statements – it is determined for selected clients, e.g. professional chambers. All-Purpose Profi Mortgage with Submission of Financial Statements – it serves for the financing of short-term working capital, as well as medium-term and/or long-term investment needs related to growing business activities. FLEXI Loan for Farmers Agricultural business is different from other types of businesses, mainly as for the seasonality, obtaining of payments for goods or support of various activities from the funds of the European Union. It requires a special approach and tailored products. The FLEXI loan for farmers accommodates the farmers and serves for bridging the period between the need of working capital financing necessary to cover the increased financial needs mainly in the period of starting crops and harvesting and payout of subsidies from the Agricultural Payment Agency. Moreover, VUB enables the farmers to pre-finance up to two subsidized periods. This type of loan is suitable also for land financing, purchase of agricultural land for production purposes, financing of agricultural equipment and technology. FLEXI Land VUB Bank offers the clients who want to run their business on their own land an investment loan called FLEXI Land. It is an investment loan for the purchase of agricultural land that farmers can use with the benefit of flexible repayment methods, for example always at the time of payout of subsidies from the Agricultural Payment Agency, or a possibility of refund. 55
Clients
Project Financing with Support of EU Structural Funds By granting bridge loans (pre-financing) as well as investment loans (co-financing), VUB Bank has an active cooperation in execution of investment plans of business entities with the support of EU funds. Bridge loans are determined to finance the client’s expenses before the payout of a non-refundable financial contribution. The purpose of investment loans is to provide funds to ensure the obligatory minimum co-financing of project by the client. Support of Start Ups VUB Bank supports starting entrepreneurs and start-ups also in manners different than provision of concrete bank products or services. The most significant forms of support include direct cooperation, provision of know-how and provision of grants or financial donations for education of starting entrepreneurs. In 2016, we supported: Impact HUB Impact HUB is an international platform of co-workings aimed at supporting ideas innovative and beneficial for the society. It supports starting entrepreneurs, projects beneficial for the society and education in the area of entrepreneurial skills. Increasing the Number of Active Women in Business in Slovakia Owing to our support, for active women the Impact Hub organized a year-round training cycle of lectures Business Women Workshops and a series of one-off individual consultations on pre-determined business topics Business Clinic. The female leaders of emerging business ideas and meaningful community activities but also students and ladies longing for education took part in a series of 22 workshops focused on acquisition of practical skills in the area of marketing, online communication, management and IT. The series included also a two-day workshop entitled Rails Girls, where 60 girls and women learned how to create web applications from the concept all the way to coding. This helped them to discover the web as a platform for their ideas. Business Clinic is a series of a successful mentoring format, during which they got the projects one-to-one professional consulting from legal, accounting, marketing and online communication experts. Within both formats, we enabled more than 300 female participants to acquire new practical skills, which they can immediately apply to a project or developing business. This will contribute to a better business environment in Slovakia accepting women as entrepreneurs.
Innovated Products – Service to Customers Magnifica – New Private Banking Service Model The new, premium segment includes retail clients, who are in the care of specialized personal bankers. The Magnifica service model brings the clients a package of above-standard personalized services accommodating their financial needs. The service is provided to clients in above-standard branches, so-called Magnifica Centres, which we opened in all regional towns in Slovakia. Compared to a classical branch, the Magnifica Centres are differentiated by a comfortable and discreet ambience, fast self-service zones or a pleasant waiting zone with daily press and Internet access. For Magnifica clients, in each area we prepared special banking products: interesting current account, debit or credit cards with many benefits, special mutual funds or mortgages and loans with favourable interest. We try to bring the clients the latest technologies enabling them to simplify communication and have access to quality and up-to-date information necessary for their decision-making in the world of finance. Through digital channels, we provide the clients with access to their portfolios, so they would be always informed on their development and condition regardless of the fact whether the Bank is open or not. In addition to financial services, the clients (investment into securities, financial derivatives and investment gold) are provided also many non-financial services. These services include tax and legal consultancy, where we cooperate with tax advisors and auditors of multinational companies. Then we offer also art banking (paintings, jewellery, historic automobiles) and also full-scope concierge services.
56
Clients
Currently, there are 8 Magnifica Centres opened in Slovakia. Clients can use the services of a personal banker also in 24 Magnifica Branches in other towns. At the end of the year, personal bankers managed 34,000 clients and other 50,000 premium clients were under the management of other branch positions. Private Banking A certified personal banker will adjust to the client’s time capacities and agrees on a concrete appointment. He/she will set up with the client an efficient financial plan and identifies his/her financial needs in each life situation, which he/she then helps to meet. He/she is in regular contact with the client and informs him/her in timely fashion of all important aspects of the client’s finances, e.g. how to get a maximum out of the funds by saving and investing, or he/she will give advice on how to most conveniently obtain funds for client’s housing or other needs. We provide the clients with a so-called “open architecture“, i.e. “tailored“ products. The client requests are handled also over the telephone without any need of visiting any branch. We also save the clients’ time, if they need to meet outside the banking premises. We always accommodate them. The biggest benefits of the Private Banking services include professionalism, expertise, discreetness, flexibility and forthcomingness. To a great extent, the service also saves the clients’ time, since a private banker monitors the development of client’s portfolio on a daily basis. The clients’ perception of such service is very positive.
VUB Account and VUB Magnifica Account
In recent years, the behaviour of bank clients has changed significantly. Today clients require products that are useful and simple to use. They want to know what they pay for, but even more they require the answer to the question “what do I get for it“. In VUB Bank, the new benefit program will help them save 50% or up to 100% of the monthly account maintenance fee. In 2016, they have the chance to open a VUB account via Internet Banking from the comfort of their homes. Credit Cards Due to constantly changing needs of our clients, in 2016 VUB Bank made the credit card related benefits more attractive. Transfer from card – a new service enabling the holders of all MasterCard credit cards to easily transfer funds from their credit card to any current account by means of Internet / Mobile Banking. MasterCard Standard – change of the annual loyalty program to a monthly bonus for payments, when at the
purchase over € 300 the client gets his/her monthly fee back. At the same time, there is a new benefit in form of 1% money back at payment by card with an Internet merchant. MasterCard World – last year also the loyalty program for payments and money back for credit card MasterCard
World underwent changes. The client can get cash back of up to 2% of payments in hotels and restaurants, 1% of online payments and 0.5 % of all other payments. Moreover, on his/her birthday, the client will get even +4% of the payments. Clients can get as much as 100 % discount from the monthly fee in case of the minimum volume of payments of € 500.
Simplicity and Transparency in Communication We care that cooperation of clients with our bank be simple and comfortable. Transparency is one of our key values, therefore as a signatory of the Consumer Protection Code of Ethics, we inform our clients on everything in the most open manner possible. We provide them with information on our products and services through: employees, sales points, information flyers, brochures and user handbooks, web pages, social networks.
57
Clients
Financial Education The issue of financial education for clients and non-clients of VUB Bank is still current and important. In order to raise the clients’ financial awareness, each year we prepare new projects. In 2016, the existing activities were expanded by education in the area of digital banking iPoradca (iAdvisor). It is an educational and supporting activity for: employees - workshops, newsletters, iAdvisor’s knowledge base built on VUB’s Intranet, creation of a Digital Banking Handbook, clients – iAdvisor section of VUB’s web pages. The aim is that a client who needs advice on digital products and services or assistance in their activation and use, would have a fast and easy access to the necessary information. In 2016, we simultaneously transferred the role of iAdvisors (approx. 200 dedicated employees with detailed knowledge of digital banking) to each branch employee, which helped us to achieve a high percentage of active use of Internet and Mobile Banking by VUB employees (86% use of Internet Banking and 64% use of Mobile Banking).
Professional Associations In VUB, we honour our clients and therefore we adjust our range of products and services to their needs and specific requirements. We are trying to know our clients the best we can and differentiate our product portfolio so it would meet the requirements of our client base in the maximum extent possible. One of the forms of coming closer to our clients, communicating and cooperating with them is to conclude agreements with professional associations (chambers and associations). It is VUB Bank’s interest to foster possibly most intense cooperation with professional associations in terms of mutual communication, promotion of activities, marketing activities and utilization of bank products and services by their members. The cooperation is intended to make the Bank’s products and services as available to the members of professional associations as possible. For this reason, our website features a special section for professional associations. Continuous progress, trustworthiness, reliability and honesty are the main values we follow in satisfying the needs of professional association members. Our partners include: Association of Private Physicians, Chamber of Slovak Republic Veterinaries, Slovak Dentist Chamber, Slovak Medical Chamber, Slovak Sole Trader Chamber, other chambers with special offers. VUB Bank has had already 11 years of cooperation with the professional associations. What does it consist in? Why is it convenient for e.g. doctors to keep their finances in VUB? VUB Bank has prepared and regularly updated special products and discounts for the members of the Slovak Medical Chamber – private and also state doctors. These are products we tailored to the needs and specifics of the doctors. We prepared the products in cooperation with the representatives of the Slovak Medical Chamber who told us about various situations that the private as well as state doctors encounter in their practice. State doctors can use convenient products from the area of personal finance, private doctors can also enjoy the benefits for businesses. They can obtain convenient loans to finance their housing, equipment and operation of their offices or anything they as members of the professional association need. For the young starting doctors, who enter the private sphere, we offer an overdraft or instalment Profi Loan also without minimum required years in business. In the long-term horizon, we have been continuously striving to build firm and permanent relation on a high level of expertise and consulting quality for all professional associations. We participate in conferences, seminars and events where our corporate specialists represent us and subsequently directly communicate with the members about their needs, requirements and solution possibilities. We are pleased to say that currently an average of 42% of members from the contracted professional association are VUB clients. These clients are active users of their benefits as chamber members in the private as well as business areas. Our favourable banking products and services are continuously innovated as to facilitate, accelerate and modernize the business of the members of professional associations. The fact that we are a bank with presence all around Slovakia, we are convinced that we are the best option for our clients. 58
Employees
Employees
Employee Strategy In 2016, VUB Bank reacted to the pressure on sale and improvement of clients’ awareness about the Bank by investing into development of management, which we consider a key element in delivering our strategy. We continued in our program aimed at development of hard and soft skills, which we nowadays perceive as fundamental in the times of high turnover, low unemployment rate and a constantly changing environment. activity started and also finished in 2016 activity started in 2016 and continuing in 2017
Target Fulfilment for 2016
59
Stav
Climate Survey In 2016, the key activities of the HR and Organization Department included a climate survey, its evaluation, communication of its results, set up of action plans and their fulfilment. The survey-related activities required cooperation of several departments. The survey was repeated after two years. It pointed at areas where the Bank sees space for improvement. The weakest areas identified by the climate survey are cooperation between teams and company’s top management. On the other hand, the strengths were cooperation inside the team and highly positive was evaluation of direct superiors, who are able to set clear goals and communicate them comprehensibly. The identified areas of improvement formed the basis for drafting of an action plan. The action plan detailed the sub-areas and activities we want to focus on in the coming period. The action plans were compiled bottom-up. We dedicate and will dedicate the most energy and attention to those activities that employees marked as the key ones in order to achieve the greatest improvement possible. These key activities include simplification and changes in the compensation policy, flexible working environment and activities aimed at cooperation among units.
Internship and Work We offer university students the possibility to get employed within our Internship and Work program. For the trainee program Internship and Work 2016/2017, we published 12 areas by means of a popular Slovak job portal offering enrolment for 4th and 5th year university students. More than 60 applicants showed interest in the program. We selected 10 trainees, who could get acquainted with the Bank’s environment and activities. The trainees had the opportunity to become a part of the Marketing, Audit, HR, Credit Risk, Standard and Premium Clients, Administrative and Financial Supervision Departments. The program starts with a 3-month orientation internship with an elaborated adaptation plan for a gradual managing of tasks in the specific unit. Another 5 months of the program are dedicated to an individually performed activity, engagement of trainees in the daily working environment of the unit. The Internship and Work Program brings the trainees also many benefits related to internal training such as time management, assertivity or effective communication. After terminating the internship, those who showed their skills are offered the possibility to apply for a job with the Bank.
Recruitment In 2016, we hired approximately 530 new employees. Managerial positions in the retail branch network were staffed mainly by internal candidates who are being prepared for the role of a manager within the Managerial Bench program. It is a development program aimed at identification, development and preparation of future managers of the retail business network from among employees and managers of small branches. A total of 20 retail colleagues were enrolled in this program. We would like to continue with the Managerial Bench even next year.
Employees
Target Fulfilment for 2016
Stav
Employee Turnover In 2016, employee turnover increased by 3% compared with the previous year, when it reached the level of 15.7% of all employees. We try to reduce the churn of 643 employees, thereof 464 women and 179 men, using the procedures mentioned below in this chapter. We do not only rely on external factors generally reducing turnover.
Retention and Motivational Program In 2016, we continued nominating employees for the Key Employees program with the aim of keeping the turnover of this target category at a desired level. 10% of employees, including managers were nominated into the program in individual categories: talents, key employees and successors. These colleagues were offered several development programs aimed at professional and personal development. This program includes also the development program Managerial Bench, which prepares future managers from among employees. In June 2016, we ran already a second year of the Managerial Bench. At the end of year, we evaluated the success rate of this program at 60%, i.e. 60% of all participants recorded career growth in the managerial line during or after terminating the development program.
New Training Application VUB Academy In 2016, we implemented a new training management information system entitled VUB Academy. This new system is built on modern technologies and compared to the previous system it is user-friendlier and more intuitive. It allows a transparent and easy planning and organization of training and development programs. It also provides space for e-learning, webinars and other online forms of training.
Implementation of Certification Process With the aim of increasing the professional level of our branch specialists, in October 2015 we launched certification. Certification consists of an expert (tests) and skills sections (case studies), which evaluate the specialist’s overall professional expertise. In October and November 2015, we certified all personal bankers, corporate specialists were certified during May and June 2016 and in the autumn we certified also mortgage specialists. The opportunity to get certified will be given to all specialists in approximately 6-month intervals, whereas the certificate obtained is going to be valid for 2 years.
60
Employees
Employee Structure Majority of our employees are women – in 2016, out of the Bank’s total number of 3,439 employees, 72% were women. This disproportion in favour of women occurs mainly in branches in the retail branch network, where mostly women work. Employee Structure by Type of Employment Agreement 2016
%
2015
%
2014
%
2,826
82.18
2,916
84.38
2,952
84.51
613
17.82
540
15.63
541
15.49
2016
%
2015
%
2014
%
Full-time
3,408
99.10
3,435
99.39
3,482
99.69
Part-time
31
0.90
21
0.61
11
0.31
Indefinite period Definite period
Employee Structure by Type of Employment
Employee Structure by Position Type and Gender % Senior management employees
1.66
Men
1.31
Women
0.35
Middle and junior management
13.20
Men
4.57
Women
8.64
Administrative employees
85.14
Men
22.13
Women
63.01
Branch Employee Structure by Category and Gender % Management employees
7.68
Men
1.66
Women
6.02
Family bankers Men Women Other
32.95 4.42 28.53 9.86
Men
1.13
Women
8.72
Employee Structure by Age (%) %
61
50 years
16.89
Employees
Employee Structure by Education and Gender % University education
56.03
Men
20.65
Women
35.39
Secondary education
41.29
Men
6.51
Women
34.78
Other
2.68
Men
0.84
Women
1.83
Employee Structure by Average Age Age Men
38.13
Women
40.49
Senior managers
42.32
Junior managers
43.08
Non-managers
39.28
Average Duration of Employment Relationship in Years men
women
total
2016
9.82
13.23
12.28
2015
8.69
11.14
10.45
2014
8.59
11.36
10.55
2013
8.32
11.09
10.37
2012
7.93
10.82
10.05
Muži
Ženy
Spolu
653
934
1,587
Banská Bystrica
63
287
350
Košice
43
199
242
Nitra
38
213
251
Prešov
48
244
292
Trenčín
45
181
226
Trnava
30
193
223
Žilina
43
225
268
Total
963
2,476
3,439
Employee Structure by Region and Gender Bratislava
62
Employees
Employee Structure by Citizenship Muži
Ženy
Spolu
Slovakia
959
2,471
3,430
Hungary
0
1
1
Czech Republic
3
4
7
Italy
1
0
1
963
2,476
3,439
Total
Employees on Parental Leave Number of employees entitled to and being on parental leave
392
men
0
women
392
Employee Turnover Compared to the previous year (15.7%), employee turnover at the level of 18.7% represents a year-on-year increase by 3%. In total, 643 employees quit, thereof 464 women and 179 men. Besides external factors, we attempted to reduce the turnover also by other procedures: elaboration of an adaptation plan at joining of each new employee, regular meetings with new hires within the trial and adaptation periods, motivational interviews with the employees after the adaptation period with the aim of obtaining their feedback, improving quality of recruiting tools in key positions, within the manager coaching a bigger emphasis on their work with their inferior employees, use of a mentoring concept, which lead to improvement of quality and acceleration of orientation of new hires for their future work: the concept brought reduced churn rate of new employees within the period of 3 months after joining, preventive solving of personnel issues through HR partners in the regions and at the Head Office, interviews at employment termination, finding out the reasons for departures and subsequent work with this information. implementation of electronic recording and evaluation of departure reasons, which will enable us to process the obtained information in a better and more transparent manner and also work on their elimination.
Turnover by Age and Gender Total
643
18.7
Men
179
5.21
Women
464
13.49
50
63
%
Employees
Region
Men
Women
Total
13
73
86
123
194
317
10
25
35
Nitra
3
32
35
Prešov
5
43
48
Trenčín
7
26
33
Trnava
9
34
43
Žilina
9
37
46
Total
179
464
643
Banská Bystrica Bratislava Košice
Recruitment In recruiting and hiring new employees, we follow the rules based on assessment of individual knowledge, skills and personal prerequisites relevant for the vacant position being staffed. We pay due care to adhering to the principles of impartiality and avoid protectionism, misuse or discrimination. Job applicants interested in working with us can refer to our Internet page in the “Career” section V, which provides an overview of the current vacancies. In 2016, we hired approximately 530 new employees. One of the most important sources in staffing vacant positions is the VUB employee base itself. Open or newly created positions present an opportunity not only for external candidates, but it is also a challenge for internal employees in their further career growth. As a matter of tradition, also in 2016 we continued in the Find Your Colleague program. This activity is aimed at engaging all our employees in searching for and recommending candidates for vacancies. In case of all proposed candidates, we always assess their suitability for the given position. Only the best of the best make it through the standard recruitment process. After six months and subsequently also after the candidate’s full year in the position, the recommending employee is paid out a motivation reward. For new employees, each month we organize the so-called Welcome Day. Its aim is to give a basic overview of the Bank - information on the history of the Bank and the Intesa Sanpaolo Group, its market position, portfolio of products and services it provides, company structure but also on employee rights, obligations and benefits. From September 2016, in addition to the introductory welcome speech by the CEO, which is very motivational, for the new hires we also prepared a presentation about the retail and corporate banking business. The traditionally presented topics include the activities of Human Resources and Organization Department, Marketing and Corporate Communication (mainly the Bank’s brand) and Security and BCM. This block’s duration does not exceed ½ a day. The afternoon agenda differs for the employees of retail and corporate business networks and Head Office employees. Retail and corporate business network employees receive an obligatory training on Anti-money Laundering and Anti-terrorism issues. The next day, the retail network employees are trained on another obligatory topic - Fraud Prevention. This change brought us a shortening of the 3-day orientation trainings to 2 days. For the Head Office employees, we offer a short afternoon training session on Overview of Bank’s Products, where everybody regardless of their job position learn all the necessary information about the Bank’s basic retail products that they themselves or even their close persons might use. This is to support the idea that each employee should be also an ambassador of VUB in his/her surroundings. Recruitment in 2016 Total
532
Men
170
Women
362
64
Employees
Recruitment by Gender and Age (%) Total
100%
men
31.95%
women
68.05%
50 Recruitment by Regions
4.14% Men
Women
Total
13
51
64
124
145
269
Košice
3
23
26
Nitra
6
29
35
Prešov
7
35
42
Trenčín
6
21
27
Trnava
3
32
35
Žilina
8
26
34
Total
170
362
532
Banská Bystrica Bratislava
Performance Management and Career Development We provide all our employees with an opportunity to express their individuality in the best way possible, which leads to a higher creativity at work. We support innovative ideas that make us move forward. In VUB Bank, we guarantee equal opportunities regarding jobs and development tools within the professional development and growth covered by the Performance and Development Management System. It is aimed at: creating conditions for individual development of all employees and enabling VUB Bank’s development as a whole, strengthening the employees’ engagement in Bank’s development, arranging that all employees would efficiently contribute to meeting the Bank’s goals, increasing transparency and fairness of compensation. All our employees have a chance to develop their careers and grow within the company. The point of this development path is to ensure that each employee would get targeted support. The development path starts with an adaptation orientation, which is later on followed by trainings specified according to the type of position, knowledge and skills required to accomplish the work tasks. An important part of the Performance and Development Management System is the evaluation process. Last year, we continued with the GPS (Global Performance System) evaluation system, which is common for all subsidiaries of the Intesa Sanpaolo Group. Its main task is not only to evaluate the employee’s targets but also to plan his/her key tasks and targets supporting the Bank’s strategy for the upcoming period. Each year, all employees are evaluated by their direct superiors subject to their work position and classification. Within the whole process, an important role is played by the employee himself/herself, who declares his/her ambitions and ideas regarding his/her future career. The superior employee, based on the employee’s performance, motivation and potential coordinates his/ her further development and growth. Number of Promotions by Gender Total
38
Men
19
Women
19
Percentage of Promoted Employees
65
2016
1.10 %
Employees
Compensation The main principles of VUB Bank’s Compensation Policy are transparency, fairness and motivational factor. The system is set up as to enable VUB Bank to be competitive in the labour market and at the same time attractive for its employees. We monitor and react to the wage and inflation development in Slovakia so that our real wages would correspond to these trends. The basic tool for setting up the compensation policy is the Catalogue of Working Positions, which defines the working positions in the Bank, job descriptions, “sizes“ of individual positions across the entire Bank are measured based on: complexity of work, impact on company’s performance, core-business and support, work with confidential information, initiatives and performance monitoring, knowledge and experience, management and independence. The Compensation Policy is made up of a fixed and a variable component. The fixed component reflects the work position, its “size”, complexity and performance from a long-term perspective. The variable component corresponds to the employee’s performance and it is simultaneously a motivation tool designed to increase the personal involvement of employees in accomplishing the tasks set and to reward their performance and contribution to the Bank. Overall annual as well as individual results are evaluated by the Compensation Committee consisting of CEO, Deputy CEO for Support, Executive Director of Finance, Planning and Controlling Division, Executive Director of Human Resources Department. The Committee is also charged with approval of annual evaluation results, variable wage components and base wage adjustments. Employee Evaluation Percentage of annually evaluated employees
% 100.00
Men
28.00
Women
72.00
Number of annually evaluated employees
3,439
Men Women
963 2,476
Benefits Irrespective of their job classification, VUB Bank provides all its employees with a wide range of benefits (i.e. financial and non-financial benefits). VUB Bank has been fully financing the food allowance and continuing to provide financial assistance to employees facing complex life situations for many years. The retail network employees who are in daily contact with the clients receive a clothing allowance. A high amount of funds spent on employee benefits represent the contributions to supplementary pension saving, while the ratio of contribution made by employee and employer is 1:1. The employees can also use some banking products under more favourable conditions e.g. free-of-charge bank account maintenance, favourable interest rates on term accounts, consumer or mortgage loan at favourable interest rates or discount rates on insurance. The benefits include also a commuting allowance. Moreover, each year we focus on supporting the families of our employees, which is for example proven by the allowance at child’s birth, popular gifts at the occasion of the International Children’s Day or an allowance for a children’s summer camp. Also in 2016, we continued in the strategy of employees’ health care and balance between their work and private life. We provide a contribution for preventive screenings, a paid leave day before wedding, for parents of first graders a leave on their child’s first school day, for fresh fathers a day off after the birth of their child. We inform our employees on the current offer of benefits primarily via Intranet and also other communication channels.
66
Employees
VUB Bank tries to keep balance between the work and personal life of its employees. By means of several measures it accommodates its employees in order to achieve the best harmonization of these “lives” possible. The major measures include flexible working hours (optional start between 7.00 a.m. – 9.00 a.m. and end between 3.00 p.m. – 7.00 p.m.) and four days off annually for intensified healthcare provided by the Bank beyond the framework of the legal title to holiday. Women from the 4th month of pregnancy and single employees caring for a child up to the age of 15 (in case of disabled children up to the age of 26) have the possibility to take annually additional two days off. Days Off Beyond the Legal Framework Days off beyond the legal framework are very popular among employees. In 2016, our employees used 11,647 days off determined for healthcare. Paid leave on a working day before their wedding helped 78 colleagues to prepare for their big day; thereof 42 employees were from the retail and 1 from the corporate business network, and 35 employees from the Head Office. The opportunity to relax and celebrate one’s round anniversary with a day off at the 50th and 60th birthday was used by 87 people. On the first day of compulsory school attendance, 92 employees accompanied their first-year pupils using a day off for accompanying a child at his/her first school day. 60 dads found a day off for fathers during the first weeks after their child’s birth useful. Overview of employee benefits provided in 2016: convenient products (saving account, term account, consumer loan, flexi mortgage, free account maintenance) supplementary pension insurance, day off with wage compensation beyond Labour Code, care for employees’ health, healthcare allowance, food allowance, commuting allowance, social aid allowance, clothing allowance, working anniversary bonus, child birth bonus, other benefits (cultural and sports events, discounts, relaxation voucher, Health Days).
Funds Spent on Employee Benefits in 2016 (in EUR thous.) Insurance and accident policies Working anniversary bonus Allowance for children / students Cultural and recreational activities Allowances for disabled children
1,150 239 0 235 0
Convenient Products for Employees Mortgages (number) Total mortgages paid out (in EUR thous.) Loans (number) Total loans paid out (in EUR thous.)
767 58,721 871 7,739
Training and Development VUB Bank creates conditions for a continuous and systematic improvement of its employees’ qualification, supporting their training in the areas crucial from the perspective of the Bank’s needs and their personal development. Specific training requirements are addressed according to individual needs in collaboration with external training organizations in the Slovak Republic and abroad mainly in form of internships or participation in selected training activities. On one hand, the training activities are aimed at development of knowledge and skills necessary for performance of employees’ jobs, on the other hand many employees perceive such activities as important motivators. 67
Employees
Retail Business Network Trainings In the retail network, we support implementation of the Bank’s strategy by several training and development programs aimed at increasing the quality of sales. Starting from October 2015 until the present, we have been running a development program called Managerial Role dedicated to managers and advisors in branches. The aim of this program is to learn to manage sales by managing the advisors’ activities and skills. We consider a quality sales interview with all clients as the basis regardless of whether they came to the Bank to arrange a mortgage or only make a cash deposit or payment. The program includes all branch managers, regional teams and through them also all branch employees. Such sales approach is supported also by the training program The Art of Sales, which is determined mainly for those colleagues in branches, who joined the bank several years ago and participated in trainings aimed at sales skills development a longer time ago. The Art of Sales smoothly follows up on the Managerial Role. Approximately 270 advisors participated in the program during the months of May and June. Head Office and Corporate Business Network Trainings For this target group, 80% of trainings are expert trainings specific for concrete job positions organized in cooperation with external suppliers from Slovakia and abroad. Within personal development and/or soft skills development, we provide the Head Office employees with a wide range of trainings focused on communication, personal efficiency or cooperation. In 2016, such training was included in the training plan of more than 700 Head Office employees. For the employees, who were identified as key employees, successors or talents, we brought several development programs, whether aimed at comprehensive understanding of banking processes, personal efficiency and personal development or at gaining top-notch negotiating skills. VUB Academy VUB Bank’s own training centre VUB Academy organizes technical courses and also corporate and personal development courses. The Academy prepares professional and skilled employees, supports continuous development of employees and their careers, motivates and stabilizes the employees. In the e-learning system AMOS, the employees can view the catalogue of educational and training activities and take an initiative approach to their development and career growth. The e-courses and e-tests are available at any time and the users can repeat them several times. The application contains courses on current topics, trainings for individual working procedures, freely available tests up-to-date for the given position or product and many trainings. Starting from May 1, 2016, a new application VUB Academy went live. It brings employees, for example, a simplified training enrolment process. By eliminating the step of superior’s approval for training, we reduced bureaucracy and load on employees. We suppose that participation in training is a matter of oral agreement between an employee and his/her superior. In addition, the new application brings also some other benefits such as overview of one’s trainings and team members’ trainings or the possibility to ask for a date or reserve a training in advance. The launch of the new application included also instructional videos, which made the process of learning about the new tool for employees easier. In 2016, we executed an average of 6 training days per employee of VUB Bank in form of classroom training and 2 days in form of electronic training. Trainings by Type External classroom trainings (% days)
18 %
Internal classroom trainings (% days)
58 %
Electronic trainings
24 %
Total hours of trainings provided (days)
27,425
Trainings by Content
%
Management and communication skills
26
Business
19
Operations
6
Lending
14
Finance
8
Special
19
IT
8
Languages
1
68
Employees
Another activity we have to form our own professionals is the Mentoring Program within the retail business network. Employees in senior positions become mentors, who hand over their practical experience to junior colleagues, mostly to the newly hired employees or employees returning to work after maternity or parental leave. The aim is an easier adaptation to the working position. Within the ZAPNi (SWITCHon) program, we give our employees space to search for innovative solutions with the purpose of improving satisfaction of clients or employees. In 2016, we received 72 suggestions for improvement of Bank’s processes. Since the program’s launch, we have implemented already 153 good ideas into practice. Employee Survey Employee satisfaction is periodically examined in the form of employee surveys. The employees of VUB Group take part in a group-wide employee survey (Climate Survey), which has been regularly performed by the ISBD Group already since 2009. However, it provides only a general view of the bank. VUB Bank needed to get a better idea about its current situation, about what should be improved in each department. Therefore, from May 31 to June 14, 2016, we ran a more detailed employee survey across the VUB Group in cooperation with the international consulting firm Aon Hewitt, which guaranteed the survey participants’ anonymity. The survey results were presented to the employees and some measures deriving from this survey were implemented already during 2016. As a matter of priority, the action plan included activities from the areas marked by employees as problematic. Based on the employee survey performed in 2016 and subsequent focus groups, areas of improvement for implementation started in 2016 and to be continued in 2017 were suggested. The areas we paid attention to and will continue to do so are: compensation and recognition, favourable infrastructure, cooperation and communication among teams.
Diversity and Equal Opportunities VUB committed not to discriminate, respect the principles of equal treatment, exclude from its actions any discrimination and respect differences based on gender, age, race, faith, political opinion, participation in unions, language skills, impairment, marital and family status, political or other opinion, national or social origin, property or other position. By signing the Collective Agreement, it also undertook to observe the discrimination ban in compliance with the Labour Code. The employees must not be harmed for exercising their rights ensuing from industrial relations. In 2016, no action was filed regarding a case of discrimination. The Bank provides everybody with equal opportunities for personal and professional growth giving each employee an equal opportunity to assert himself/ herself. Differentiation of employees according to their work prerequisites and performance is however not considered discrimination. In 2016, the number of disabled employees increased to 44. The indicator in regard to protection of rights of aboriginal inhabitants is not relevant due to the geographic location of our business activities.
Occupational Health Protection The Bank considers its obligation to create a working environment and conditions pursuant to the Slovak technical standards and hygiene regulations. The topics of occupational safety and health protection are contained in internal regulations and Collective Agreement. The rights of all employees in this respect are represented also by the Trade Union representatives. In accordance with Article 20 of the Act of the National Council of the Slovak Republic No. 124/2006 Coll. on Occupational Safety and Health Protection, the main Occupational Safety Commission is nominated in the Bank. It consists of 7 members: 4 employee representatives (trade union members) and 3 employer representatives. Besides the main commission, nominated are also regional occupational safety commissions for each region, which carry out regular annual comprehensive inspections of occupational safety and health protection. The regional commission works at least in a four-member set up: employee representative, two employer representatives (regional facility management technician and branch manager), and occupational safety technician. Altogether, there are 260 occupational safety commission members, i.e. a percentage of the total workforce represented in formal joint occupational safety and health protection commissions falls in the category of up to 25% of the total employee count.
69
Employees
Each new employee is obliged to participate in orientation training pursuant to Act No. 124/2006 Coll. on Occupational Safety and Health Protection and on amendment and supplementation of some acts. Periodical trainings on occupational safety and health protection in accordance with the above-stated legislation and the Bank’s internal regulations are taken by all Bank employees every two years in electronic form. The Bank ensures also training for employee safety representatives (trade union members) and a first aid course. Activities in the area of occupational safety and health protection (annual comprehensive inspections, provision of personal work protective equipment, training, investigation of occupational injuries, measures for enhancement of work environment, updating of internal regulations) are semi-annually submitted at revision of the Collective Agreement. Training and consultancy concerning the employees is ensured by the occupational safety technicians from an external company. Within prevention and risk control, a Work Medical Service performs an inception audit at the opening of a new branch. Medical services, first aid trainings, workplace supervision and preventive medical examinations according to the type of work performed are ensured by a work medical service from an external company. The Bank ensures safe working conditions not detrimental to health and provides personal protective equipment in premises where cash is handled and in premises where works of technological nature are performed. In case an employee uses a company car, he/she is obliged to take a driving capacity examination every 2 years. Due to the nature of our business activity, there is a possibility that our employees could find themselves in situations endangering their lives, e.g. in case of a branch robbery. In these rare cases, they are provided professional psychological assistance and are entitled to 5 business days off for recovery. In 2016, we recorded one case of robbery. Despite the above-mentioned measures taken within the trainings on occupational safety and health protection, prevention and risk control, in 2016 we recorded 11 registered occupational injuries. We did not record any grave occupational injury or diseases related to the performance of profession. Occupational Health Protection Number of requests filed due to occupational disease Number of registered injuries
0 11
Number of grave injuries
0
Death at workplace with final assessment
0
Freedom of Association and Collective Bargaining Freedom of association and collective bargaining are regulated by the Labour Code, Collective Bargaining Act and the Act on Freedom of Association. Collective Agreement governs individual and collective relations between the employer and employees, which are more convenient than the ones stipulated by the Labour Code or any other generally binding legal regulation. The Bank committed to preserve the trade union rights, namely the freedom of association of employees in trade unions and collective bargaining in accordance with the generally binding legal regulations. Collective Agreement is concluded for the period of 3 years between VUB and the Council of VUB Trade Union Representatives. It applies to all employees in an employment relation with the employer irrespective of their membership in the trade union. The provisions of the Collective Agreement supersede the Bank’s internal regulations in the scope of commitments concluded in the Collective Agreement.
Percentage representation of employees in the trade union Percentage of employees covered by the Collective Agreement Number of days out of work due to trade union activities (overall days off provided by the trade union organizer) Number of days out of work due to meetings
16 % 100 % 500 53
70
Employees
Notification Duty The Labour Code imposes on the employer a notification duty against employee representatives in connection with the economic and financial situation and the projected development of its activities. Notification is to be performed “in a comprehensible manner and at a suitable time“. Under the Labour Code, the employer is obliged to negotiate fundamental changes regarding, among the other, status, structure and projected development of employment with employee representatives in advance. Provision of further information including specific deadlines is agreed, under the wording of the Labour Code, in the Collective Agreement.
Internal Communication and Dialogue Attentive listening and dialogue are important also in relation to employees. In the Bank, we understand that if we expect our employees to deliver the best possible performance, we must regularly inform them of what is happening, why and where the company is heading and what is the place of each of them in this fulfilment. At the same time, we are giving them the space to voice their own opinions and ideas engaging them also in the decision-making processes. Internal communication is based on seven values common for the whole Intesa Sanpaolo Group and also VUB brand values. It helps in delivering our vision and mission and promoting the principles embedded in the Code of Ethics. The corporate Intranet is being built as the key and most efficient tool of internal communication, whereas employees themselves are drawn into creation of its content. Each piece of information on Intranet has its sponsor, so the employees know at any moment, whom they should turn to in case of need. In total there is about 5 % of all employees from various units taking care of the content. Understanding the message is the key element in a well set up internal communication. Over the whole year, on the Intranet we also run internal surveys with various topics. If the people are to understand what and how is happening in the company, a dialogue and two-way communication are a must. Employees have therefore always the possibility to ask the CEO questions by means of an Intranet form, comment on topics important for the Bank and the employee as such, e.g. on the system of benefits, form and content of Intranet and internal magazine. The employees have a possibility to meet directly with the CEO at regular breakfast called CEO Breakfast Club once a month. In this manner we encourage our employees to be interested in what is happening in the Bank.
Active Engagement of Employees in Bank’s Life Throughout the year, we prepare various internal campaigns for the employees of VUB Bank focused on motivating employees to active engagement and interactivity. Campaigns aimed at the inside of VUB are introduced on a monthly basis each time with a new topic, up to date for the given period. In supporting the company’s brand perception, values and naturally also the business we make use of all internal communication channels including posters, Intranet, newsletter or personal e-mails and computer screen savers. We were building team spirit and informal relations by attending various sports and nomination-based events, such as Intesa Sanpaolo Running Event 2016 held in the Slovenian Portorož in April 2016, ISP Sport Tournament 2016 held in June in the Croatian Poreč or ISBD Sports Event 2016 in the Slovenian Portorož where the employees represented VUB Bank in soccer, basketball but also volleyball. Some of our employees took part in the relay run From Tatras to the Danube held in August, or the event Piešťany’s Crutch, where they demonstrated unity and proudly represented their employer. At the Head Office of VUB Bank in 2016 there was a tournament VUB FoosCup 2016 also with the participation of CEO. We in VUB Bank help our employees to spend free time with their children. In cooperation with the parent bank Intesa Sanpaolo for the children of our employees we organized the May Beograd ISBD JUNIOR SPORT EVENT 2016 and in June we welcomed ITALIA SOCCER CAMP in Bratislava, which gave the opportunity to 50 children of VUB Bank employees to try out the training practice of Italian coaches.
71
Employees
Caring for Employees’ Health We realize that only healthy employees full of energy can perform their work duties efficiently and contribute to fulfilment of the Bank’s targets. In 2016, VUB Bank therefore organized a 2-day program called Health Days in Bratislava and Banská Bystrica. The employees could enjoy short office massages, have an ophthalmologist screening, undergo health measurements on special devices, try out various stress relief techniques or do some exercise in the morning yoga classes. A healthy life style should include also health food. In June, a healthy snack machine “Zdravomat” was installed at the Head Office of VUB Bank. It is a machine with fresh, healthy and quality food offering salads, cereal baguettes, mineral waters and fruit juices or healthy snacks. During damp and cold weather, VUB Bank was handing out apples to all employees during the entire week with an instructive slogan “An apple a day keeps the doctor away”. The employees were motivated to boost their immunity also in an amusing way. Several times a year, VUB Bank welcomed healthy stands located in the premises of the reception, where employees could buy blueberries, bio chocolate and other bio sweets or consult with an herb lady how to prevent diseases or tackle them by using grandmothers’ recipes. In 2016, VUB Bank did not only care for the physical health of its employees. The feeling of being useful and important and/or self-realization have positive impacts on the mental condition and health of a person. Sometimes it only takes a little for a person to realize his/her importance in the company he/she works for. During the Clients’ Week, VUB Bank decided therefore to thank also its employees who were instrumental in fulfilling the set targets and maintaining the Bank’s leading position in the market. The CEO expresses his gratitude in his speeches and VUB Bank thanked all its employees by means of posters located in the lifts at the Bank’s Head Office, e-mailing or Intranet. In 2016, VUB organized the 2016 VUB CHAMPIONS LEAGUE (VUB LIGA MAJSTROV 2016), which celebrated the biggest champions of the year-round competition of retail branches. The annual competition has positive influence on healthy competition among branches and employees’ motivation to constantly improve. In VUB Bank we realize that high work pace requires a lot of energy. At the end of every year, we hold the traditional Christmas meetings VUB Life in Košice, Banská Bystrica and Bratislava, where our employees can get to know each other better and gather new energy for the next year. We try to help our employees to keep the balance between work and personal life by offering them various benefits. The employees were motivated also to physical activity, which is beneficial for an overall health condition. During the European Mobility Week, we encouraged our employees to leave their “honeys“ – cars at home and use other, more ecological means of transport (for more refer to the Environment chapter). VUB Bank also motivated its employees to use bicycles as eco-friendly means of transport by procuring several parking spots by purchasing more stands.
72
Shareholders
Shareholders
VUB SHARE CAPITAL AND SHARES The share capital amounting to € 430,819,063.81 is divided into 4,078,108 89
registered and book-entered shares with a nominal value of EUR 33.20 per share and registered and book-entered shares with a nominal value of EUR 3,319,391.89 per share.
VUB paid up its whole share capital. VUB shares are traded in a public equity market organized by Burza cenných papierov v Bratislave, a. s. (Bratislava Stock Exchange) (hereinafter “Bratislava Stock Exchange or “BCPB”), under share numerical code ISIN – SK 111 000 1437 in the total number of 4,078,108 units. Information on these shares is also available at the official web page of the Stock Exchange under the section securities/markets, quoted market and issue detail of VUB. VUB Bank issued also 89 registered shares that are, however, not publicly tradable. Information on VUB shares traded on public equity market Name
Share of Všeobecná úverová banka, a.s.
Form
book-entered share*
Type
registered share
Issuer
Všeobecná úverová banka, a.s.
Country of Issuance
Slovak Republic
Number of Shares Issued
4,078,108 units
Nominal Value
€ 33.20
Placement of Shares Issued
Bratislava Stock Exchange
Equity Market
Main listed stock market
Trading Currency
euro (€)
ISIN
ISIN SK 111 000 1437
Ticker symbol
1VUB02A
Share index
SAX
Note: * a book-entered share means an electronic record in the register of the Central Securities Depository of the Slovak Republic
VÚB, a. s., has a great number of minority shareholders from the first wave of the coupon privatization of 1991. The number of shareholders dropped from the original approximately 80,000 to the current nearly 30,000 shareholders. The majority shareholder is the Italian banking group Intesa Sanpaolo, which entered VÚB, a. s., in 2001. Below find the shareholder structure specified in detail.
73
Shareholders
VUB Shareholder Structure Information on the Bank’s shareholders is published on a quarterly basis within 30 days from the end of the given quarter. The below data represent the status as at December 31, 2016. By Shareholder Type Intesa Sanpaolo Holding International S.A. – majority shareholder
Value of Shares in thous.€ * Stake in % 418,034
97.03
Other legal entities
5,305
1.26
Individuals
7,364
1.71
430,819
100.00
TOTAL (Share capital of VUB) By Shareholder’s Citizenship Intesa Sanpaolo Holding International S.A. – majority shareholder
Value of Shares in thous. € * Stake in % 418,034
97.03
Local shareholders
9,349
2.17
Other foreign shareholders
3,436
0.80
430,819
100.00
TOTAL (Share capital of VUB)
* Value of VUB shares in € means the value of owned shares of VUB expressed in nominal value in euro multiplied by the number of shares owned.
As at December 31, 2016, the shares of VUB were held by 29,183 shareholders. Foreign shareholders come from these countries and hold the following stakes in the share capital: Luxemburg (97.032 %), Germany (0.651 %), Czech Republic (0.139 %), Austria (0.003 %), United Kingdom (0.004 %), U.S.A., Canada, Romania, France, Switzerland, Sweden, Belgium, and Cyprus. Qualified participation in the company’s share capital has the majority shareholder, Intesa Sanpaolo Holding International S.A. Luxembourg with registered office L-1724, 35 Boulevard du Prince Henri, Luxembourg, which has a stake in the company’s share capital of 97.03 %.
Relations Between the Company and Its Shareholders and Company’s Approach to Shareholders The Bank complies with the provisions of the Commercial Code and other applicable legal regulations regarding protection of shareholder rights, as well as the provisions on timely provision of all relevant information on the company and provisions on convening and holding of general meetings. The company observes the principles concerning the shareholder rights, principle of equal access to information against all shareholders and other principles in accordance with the Corporate Governance Code in Slovakia. The governance principles ensure, facilitate and protect the exercising of shareholder rights. The company fulfils all its obligations in a due and timely fashion against all shareholders deriving from the relevant legal regulations and the Corporate Governance Code in Slovakia. The company enables a due exercising of shareholder rights and it proceeds transparently and exclusively in accordance with the relevant legal regulations.
Dialogue with Shareholders The priority of VUB Bank is to strive for efficient communication with all the Bank’s shareholders and ensure that they are informed accordingly. The General Secretariat Sub-department provides for a constant dialogue with the shareholders and the Economic Research Department bear responsibility for communication with the rating agencies and analysts. The dialogue with shareholders involves several forms, formal and also informal, in the Slovak and also English language, in written form, over the telephone and by means of personal meetings. The main medium is the website www.vub.sk V, containing necessary information, instructions and forms. It provides also practical procedures for legal acts related to the transactions most frequently required by the Bank’s shareholders, mainly: method and place of dividend payout, change of shareholder’s address or name – whom to notify and how, inheritance of VUB shares – legal steps and title to dividend, donation of VUB shares – legal steps, 74
Shareholders
Power
of Attorney for payout of dividend from VUB shares and transfer of the right to dividend, of Attorney for participation at the General Meeting, requirements related to documents legally certified abroad, participation of shareholders at the General Meeting of Shareholders – rights and requirements, full wording of documents and draft resolutions subject to discussion at the General Meeting, results of voting at the General Meeting, information on buy-out of own shares of VÚB, a.s., possibilities of buying and selling the shares of VÚB, a.s. Power
Besides the above-mentioned procedures, the Internet site provides shareholders also with the following useful information: decisions
on dividend payout for individual years, on their taxation, development of VUB share price, information on Bank’s share capital and VUB share distribution, information on shareholder structure, information on the majority shareholder, list of Bank’s Management Board and Supervisory Board members, press releases and analytical reports, information
financial
statements and important basic information on the Bank’s activities, information on VUB Bank’s market position and its evaluation, market shares, rating, bank’s vision and mission and its awards, abstract of VUB Bank’s data from the Commercial Register of the Slovak Republic, annual reports.
Overview of Dividend Payout from VUB Share
€ 10 8 6 4 2 0
4.50
4.60
3.65
4.98
6.50
6.90
10.04
2009
2010
2011
2012
2013
2014
2015
VUB Share Development Information on the current price of VUB shares in the public equity market is regularly published in daily press with national coverage releasing stock exchange news, e.g. Hospodárske noviny or on the web site of Bratislava Stock Exchange. The VUB share is included in the Slovak Share Index SAX and influences its development to a significant extent. In the last four years (2013 - 2016), the share price has been oscillating from the bottom threshold of EUR 52 per share up to EUR 154.00 per share (data as at 31/12/2016). Average Development of VUB Share for 2013-2016 in EUR
75
Source: Bloomberg Finance L.P.
Shareholders
Shareholder Rights and Obligations The rights and obligations of shareholders are stipulated by relevant legal regulations and the VUB Articles of Association. All shares are attached a shareholder’s right to take part in the management of VUB and the title to a share in its profit. The shareholder’s right to take part in the management of VUB Bank can be exercised at the General Meeting. Profit distribution to shareholders in form of dividends is subject to the General Meeting’s decision. The shares are freely transferable either by registering their transfer in the Central Securities Depository of the Slovak Republic or by registering their transfer with a member of the Central Depository based on a transfer and/or transition registration order. The General Meeting is the Bank’s top decision-making body representing all shareholders and its decisions approved pursuant to applicable legal regulations and Bank’s Articles of Association are binding for all shareholders. It is competent for the following most important decisions: decision on amendment of the Articles of Association, decision on increase and decrease of share capital and decision on authorizing the Management Board to increase the share capital, decision on issuance of preference bonds or convertible bonds, decision on change of rights connected with any type of VUB shares and on limitation of transferability of VUB shares, election and dismissal of Supervisory Board members, with the exception of Supervisory Board members elected and dismissed by VUB employees, approval of regular and/or extraordinary individual and/or consolidated financial statements, decision on profit distribution or settlement of losses and determination of the amount of profit bonuses, decision on distribution of retained earnings from previous years and/or settlement of unsettled losses from previous years, decision on utilization of reserve fund, decision on amount, method and place of dividend payout and determination of the decisive date for designation of persons entitled to exercise their title to dividends. Prior to the General Meeting, VUB Bank sends all shareholders an invitation with an agenda of the General Meeting including annexes and basic information that will be subject to the discussion. Additional information is available to the shareholders for viewing in the Bank’s registered office or they are sent upon request. The invitation and basic documents are also published on the Bank’s Internet site and in periodical press with national coverage publishing stock exchange news. Instructions on shareholder rights under Article 180 Sect. 1 and Article 181 Sect. 1 of Act No. 513/1991 Coll. Commercial Code as amended (hereinafter “Commercial Code”) and documents and data pursuant to Article 184a Sect. 1 and 2 of Commercial Code are published on Internet site of VUB Bank in the “Information for Shareholders” section at least thirty days prior to the General Meeting. VUB Bank accepts all its obligations resulting from the legislation with regard to the shareholders. The Bank observes provisions of the Commercial Code applicable to protection of shareholders’ rights, in particular provisions on timely supply of all relevant information about the company and provisions on convening and conducting its annual General Meetings. The Bank adheres to the principle of equal access to information for all shareholders pursuant to the Corporate Governance Code in Slovakia.
2016 Shareholder Protection Initiatives Since 2007, VUB Bank has been applying the Italian Act No. 262, which was released in 2005. For the purpose of implementing the Act, a project entitled “project 262“ has been defined. Its aim is to achieve compliance with the requirements of the Italian Act No. 262 in VUB Bank, which was inspired by the American Sarbanes Oxley Act issued to ensure significant strengthening of investments protection. The measures deriving from the Act cover a wide area and are aimed at various activities, such as governance of joint-stock companies, rules for accounting audit, rules for financial instruments, conflict of interests, transparency and market regulations. This Act is a part of a legal scenario aimed at consistent enhancement of governance. The objective of Project 262 in VUB is to review the internal control system, identify its shortcomings and based on the results adjust it in order to eliminate the potential risk and ensure a true and fair representation of the financial situation. The Act No. 262 requires that individual companies identify processes, which influence the financial information, evaluate associated relevant risks and based on this propose adequate design of internal controls with the purpose of eliminating potential risks. The project’s basis lies in identifying and promptly responding to a potentially insufficient functioning of the internal control system. This will assure improvement in the quality of financial reporting also by means of business ethics, efficient internal audits and good corporate governance. The Act No. 76
Shareholders
262 assigned the responsibility for the contents of financial reports, accounting procedures applied, adequately set up control system and procedures and a true and fair view of assets, liabilities, revenues, costs and cash flows to the Chief Executive Officer. Both the Chief Executive Officer and the Chief Financial Officer sign a representation confirming that adequate and efficient procedures of accounting and financial reporting have been applied. Benefit of the whole project is providing shareholders with security concerning a true and regulatory presentation of the capital, economic and financial position of the VUB Group and adequacy and efficiency of the internal control system and procedures.
77
Suppliers
SUPPLIERS
Supplier Strategy Suppliers represent one group of VUB Bank’s stakeholders that are significantly influenced by our corporate responsibility and observance of the Code of Ethics ensuing therefrom. VUB Bank requires that its suppliers adhere to principles, which form a part of its business and which it perceives as a natural part of the Code of Ethics and its daily actions. VUB Bank realizes that the Bank’s good business performance is a benefit for all stakeholder groups and suppliers have an indispensable position among them. VUB Bank is one of the largest Slovak companies and as such it also has a broad network of business partners - its suppliers. By purchasing goods and services indirectly it generates benefits for the whole society, namely in form of employment and business - financial performance of its suppliers. An indispensable commitment of VUB Bank with respect to suppliers includes responsible practices in the environmental and social areas. One of the basic prerequisites for succeeding in the competitive market is an efficient spending of funds for goods and services that VUB Bank needs for its activities. The total amount of such costs directly contributes to the Bank’s business performance. VUB Bank therefore expects of its suppliers a flexible, proactive and forthcoming approach, accompanied by high efficiency. VUB Bank is interested in developing long-term business relations built on open pricing with the aim of achieving supplier terms and conditions of utmost convenience and acceptable for both parties. VUB Bank manages the usage and consumption of materials (office paper, consumption of toners for copying machines and printers), collection and liquidation of used packaging. In the area of facility management, it cooperates with ISO 14001 certified companies. This system helps companies to successfully participate in domestic and also international tenders, but it also ensures growth of value and company’s economical operation as well as the trust of customers. Purchase of office paper is limited to chlorine-free (TCF/ECF) and recycled papers. Bulk correspondence to the Bank’s clients is sent exclusively in recycled envelopes. In the area of facility management and maintenance, VUB Bank cooperates with companies with a systematic approach to environmental protection in all aspects of their businesses. In the area of redesign, reconstructions or other construction works, VUB Bank collaborates with construction companies that include environmental care in its business strategy and also common operations. The same applies also to the suppliers of lighting and interior, the activities of which are, in addition to production and provision of services oriented on energy saving, waste minimization and minimization of environmental fees and sanctions for pollution of the environment. Since VUB Bank is not a production company and its activity does not result in products that would require purchase of input materials, the report does not deal with materials used or recycled input materials used in greater detail. For more information refer to the Environment chapter. In 2016, VUB Bank cooperated with 1,067 suppliers from various areas. Contrary to the previous year, the highest share was made up by suppliers of marketing and other categories.
78
Suppliers
Number of Suppliers in 2015 Commodity Type
Number of Suppliers
IT HW/SW/Services
177
Utilities
120
Real estates – management, rentals
454
Marketing and other categories
380
Total
1,131
IT HW/SW/Services 15,65 %
Utilities 10,61 %
Marketing and other categories 33,60 %
Real estates – management, rentals 40,14 %
Number of Suppliers in 2016 Commodity Type
Number of Suppliers
IT HW/SW/Services
153
Utilities
76
Real estates – management, rentals
395
Marketing and other categories
443
Total
1,067
IT HW/SW/Services 14,34 %
Utilities 7,12 %
Marketing and other categories 41,52 %
Real estates – management, rentals 37,02 %
Targets and Rules in Relation to Suppliers transparent selection of suppliers of quality goods and services at a good price, close cooperation with suppliers, open communication, joint set up of process efficiency, responsible partnership including regular and timely payments / settlement of invoices, selection of environment-friendly technologies, products and materials, cost efficiency in the procurement process, standardization of purchases. Legislation Governing Procurement Process in the Slovak Republic and Its Impact on VUB Bank’s Activities Selection of suppliers in VUB Bank in the Slovak Republic is not subject to the Public Procurement Act. In 2016, VUB Bank was not imposed any fines for inobservance of any laws or regulations concerning procurement and purchase of products and services. Internally, VUB Bank has sufficiently strong and multiple control mechanisms set up – internal control system, review of transactions by the parent bank and internal audit.
79
Suppliers
Pursuant to the Act on Employment Services, each employer in the Slovak Republic employing more than 20 employees is obliged to employ disabled citizens. Another option is a supplementary solution by submitting orders or purchasing goods and services from a sheltered workshop employing disabled people, from a citizen with a grave disability or from an employer employing citizens with grave disabilities. In view of the above-stated legal obligations, VUB Bank gives a part of its orders to sheltered workshops also despite the fact that prices they offer are oftentimes higher and delivery deadlines longer than with common suppliers. In 2016, VUB Bank made purchases of goods and services from sheltered workshops in the volume of € 53,200, which represents a decrease by 15% against 2015. Volume of Purchases from Sheltered Workshops Year
Amount in EUR
2016
53,200
2015
62,600
2014
47,000
For more information refer to the Community chapter. Application of Corporate Social Responsibility Rules with Suppliers VUB Bank transfers the principles of corporate responsibility further to its suppliers. Our effort is to collaborate with companies that respect and honour the values of our company and Group. We create open and strong partnerships across the entire supplier portfolio. We condition the cooperation with the effort of our future business partner by protection and improvement of the living conditions of its employees, local communities and other specific social groups. 2016 Percentage of suppliers verified in terms of their impact on the society. Significant current and potential negative impacts on the society in the supplier chain and activities for their elimination.
100 % 0%
Already within the tender process we require from our suppliers to comply with the rules of Corporate Social Responsibility via the document “Declaration on Compliance with Corporate Social Responsibility Principles”. This document became an integral part of the VUB – supplier relation and it forms one of the obligatory annexes of tenders. With the signature, the tender bidder – future business partner, confirms to VUB Bank that it conducts its business activities in line with the principles of ethics, transparency, good morals, good manners and observes the legal regulations of the Slovak Republic. The bidder further confirms that it refuses and penalizes any forms of corruption including blackmailing or bribery, supporting a fair competition. It declares that it is not involved in breaching human rights and it observes and respects international human rights in business. The bidder respects the right to freedom of association and collective bargaining and it likewise respects the rights of employees ensuing from the collective agreement, while simultaneously respecting the international ban on forced and child labour in any form.
Principles Applied in Supplier-Buyer Relations compliance
with the principles of the Code of Ethics, mainly in terms of transparency and fairness in the supplier selection processes, observance of the Group’s internal Code of Conduct. compliance with the regulations on protection of confidential information and privacy, social and ecological sustainability, occupational safety, protection of industrial property and authorial rights. separation of executive and control functions as to prevent a conflict of interests in procurement. early reporting and governance / management of anomalies. use of contractual provisions and control tools, which protect the Group against risks connected with the responsibility between partner and client. All the processes are harmonized with the parent bank’s standards. Observance of these rules is regularly inspected in the interest of observing transparency and equal opportunities.
80
Suppliers
Transparency and Equal Opportunities Transparency and equal opportunities are the attributes applied in selection of suppliers and also in definition of internal supplier processes or relations. In our perception, these are the attributes of a responsible approach of VUB Bank to suppliers. Suppliers of VUB Bank are significantly influenced by observance of the Code of Ethics. In relation to suppliers, VUB Bank professes values such as fair play and transparency. In the interest of creating and building an open partnership across the entire supplier portfolio of VUB, it is the Bank’s effort to principally cooperate with those suppliers that respect and honour these values. For the existing suppliers, it presents a challenge to continuously improve the quality of their products and services in order to be a valuable partner of VUB Bank also for the future period. For new suppliers, it means support in their ambition to become a business partner of VUB Bank. VUB works primarily with the suppliers from the Slovak Republic, however within equal opportunities it has supplier-buyer relations set up also with the suppliers from abroad, whether from Italy, the country where its parent company is based or from other countries around the world.
Country of Supplier
Number of Suppliers
Volume in EUR
955
87,498,481
Italy
18
2,508,018
Europe
88
3,784,202
North America
6
162,589
South America
0
0
Asia
0
0
other
0
0
Total
1,067
93,953,290
Slovakia
Whistle-Blowing Policy VUB Bank adopted the Policy for Solving Anonymous Complaints. VUB Bank has created an e-mail box to which their business partners can write in case a supplier, within a procurement proceeding or during contract fulfilment, comes to suspect that any bank employee or any other related party of the Bank breached legal regulations or Bank’s internal regulations in connection with the contract or otherwise (e.g. misuses of information in business contacts, fraud, extortion, misappropriation, bribery). The supplier has the possibility to turn to VUB Bank via email with a suggestion for investigation of the matter. (for more information refer to Our Approach to Corporate Responsibility chapter) V. Portale Fornitori The method of purchasing goods and services changed in VUB Bank starting from 2014. For a more efficient communication with suppliers and execution of the procurement processes we actively use the supplier portal - Portale Fornitori. The portal serves for registration of invited suppliers and we use it to perform tenders for suppliers. V. Electronic Auctions For selecting suppliers VUB Bank has been using also electronic auctions via the Access Point application V. Suppliers submit their price bids in electronic form at the same time and in one place. In this manner, VUB Bank transparently accelerates and makes the supplier selection process as well as a correct price negotiation more efficient. Electronic auction is a form of an “open” negotiation, which in procurement of goods and services provides for equal opportunities and fair play in the process of supplier selection. VUB Bank has been using electronic auctions in the maximum extent possible.
81
Suppliers
Environmental Supplier Management VUB Bank does not belong to production firms or direct polluters of the environment. Nevertheless, it committed to reduce its negative impact on the environment to the lowest extent possible. In our company, we look for optimum solutions beyond the legislative framework and one of the solutions is preference of ecological products. We prefer mainly those suppliers that adopt measures for minimizing the negative impacts of their activities on the environment. Percentage of suppliers verified in terms of observance of environmental criteria. Significant current and potential negative environmental impacts in the supplier chain and activities for their elimination.
100 % 0%
Human Rights and their Protection by Suppliers Percentage of suppliers verified in terms of observance of human rights.
82
100 %
Identified activities and suppliers with a significantly threatened right for freedom of association and collective bargaining and measures taken to support these rights.
0%
Identified activities and suppliers with a significant risk of occurrence of events of child labour and measures taken to support elimination of child labour.
0%
Identified activities and suppliers with a considerable risk of occurrence of forced or obligatory labour and measures taken to support elimination of forced or obligatory labour.
0%
Significant current and potential negative impacts in the area of human rights in the supplier chain and activities for their elimination.
0%
Environment
Environment
Environmental Strategy VUB Bank is not a producing company or a direct polluter of the environment and therefore the environmental impacts of our business are minimal. Despite the fact, we consider environmental protection and permanently sustainable growth a natural part of our operations in the market and country where we operate and therefore we committed to reduce our negative impact on the environment to the lowest level possible. As a company, we run our activities internally and externally. We monitor ecological risks and threats and try to prevent them taking various measures. We strive not only to consistently fulfil our obligations under the law, but simultaneously to commit voluntarily to mitigate the negative impacts of our business on the environment. We look for solutions beyond the scope of the legislation; we are interested in our active and also passive environmental performance mapping the relevant environmental indicators and we are constantly in search of new ways in the Bank’s environmental approach. Ecological Responsibility Respectfulness of our company and also our employees is reflected in many activities: use of weight-reduced office paper, use of office supplies with ecological liquidation, reduced production of office waste and its separation, cooperation with suppliers that hold certificates confirming observance of environmental standards, sleep mode of personal computers which will automatically switch to the mode with minimum consumption of electricity after 30 minutes of inactivity and many more. The measures for reduction of direct (resulting from our activities) and indirect (generated by clients and suppliers) environmental waste are stipulated in VUB Group’s Environmental Policy. As a member of an international banking group, we adhere to the Equator Principles and UN Global Compact. We have firmly defined internal regulations and when taking decisions on investments and lending we take into account both social and environmental risks. Also in 2016, VUB Bank’s main activities in environmental protection ensued from: 1. applicable Environmental Policy aimed at: support of investment projects focused on energy saving and renewable sources, saving measures for reduction of energy and consumer material consumption, waste separation and measures for reduction of its production, raising of employees’ environmental awareness. 2. Environmental Sustainability Action Plan with priorities for energy savings (2013 – 2016) focused on: replacement of obsolete electrical appliances with new ones featuring the highest ecological parameters, complex introduction of LED technologies, optimization of heating systems, replacement of measuring and control systems and technologies. Environmental Policy It is a fundamental document of VUB Bank and it forms the basis of our environmental conception. It sets the mission and objectives in environmental protection, permanently sustainable development and complex environmental management. It defines the principles and guidelines concerning direct and indirect impacts on the environment in relation to our stakeholders, it addresses the use of sources (water, heat, energy, gas), procurement, mobility. Last
83
Environment
but not least, it allows the Bank to communicate its intentions and objectives to employees and other stakeholders. In addition to the Environmental Policy, in 2016 we followed also other internal policies: 1. Organization of Social Events and Internal Training Courses, 2. Purchase and Use of Office Paper, 3. Integrated Environmental and Energy Management System. UN Global Compact VUB Bank undertook to act in accordance with the international standard UN Global Compact, to which it acceded in 2009. It includes also environmental protection principles, which we strive to observe in the maximum extent possible. Equator Principles We take a responsible approach to project financing and lending. Managing a great volume of funds, we significantly impact the flows of capital. Therefore, it is important for us that projects we decide to finance do not have a negative impact on the environment we live in. Voluntary compliance with the Equator Principles as well as a strict implementation of the principles applied in all levels of our credit policy confirms this commitment of ours. Management Approach Our effort is to encourage employees – users of buildings to efficient solutions taking into account optimum working conditions. Our environmental management currently involves: Facility Management Sub-department, Internal Services Sub-department, Procurement Department, external suppliers of products and services, Risk Management Division, regular inspections and controls in branch and also headquarters buildings focused on reduction of energy consumption and identification of potential savings, internal regulations and notices, internal communication - employee awareness. Integrated Environmental and Energy Management System It covers prevention, management and, where possible, also reduction of impacts, direct or indirect, of our activities. Direct impacts are defined as negative impacts of our activities or direct influence of the environment through the Bank’s actions. (for example, use of sources, management of hazardous substances and waste handling, waste reduction, energetic efficiency). Our management system clearly defines rules and processes related to implementation of the Environmental Policy. Although VUB Bank is not a fundamental polluter of the environment, our impact can be split into an indirect and direct one. We try to regulate the indirect impact by: complying with international and national environmental protection protocols, supporting projects with a high environmental value (loans), incorporating environmental standards and Equator Principles into our lending system, principally not granting funds for financing of certain activities that could endanger the environment. We try to minimize the direct impact by: energy saving measures, introducing and observing internal regulations and notices concerning e.g. economical usage of electricity in the offices, air-conditioning (principles of its utilization), cooling and heating (setting of interior temperatures in cold and hot periods),
84
Environment
regular collection and ecological liquidation of non-functional telephones, accessories and batteries, collection and liquidation of waste classified as hazardous (toners, fluorescent lamps), video conferences instead of business trips, turning off of computers outside working hours, during weekends and holidays.
Environmental Management Indicators Number of employees appointed to directly implement environmental policy within their job description
1
Number of internal specialists
0
Number of external specialists
2
Percentage of employees regularly informed of environmental policy implementation
100
Costs Related to Environmental Management and Waste Liquidation Year in EUR
2015
2014
2013
16,508
16,633
17,781
DIRECT IMPACTS Paper we prefer black and white duplex printing etc., at the meetings of the Bank’s management we use electronic version of documents instead of printed version, we use more ecological envelopes from purely natural materials labelled by the certified Green Energy logo we use multiple-use envelopes made of recycled paper for internal purposes, we replaced paper invitations to events organized by the Bank by electronic ones, we introduced a digital specification of a purchase request between the Facility Management Sub-department and Procurement Department, attendance of employees, medical and private leave tickets, other interruptions of working time and planning of holidays are recorded through the EGJE electronic system. Graph – Subscription of newspapers and magazines in printed form compared with the electronic version 90.6 %
2016
9.4 % 91.8 %
2015
2014
8.2 % 96 % 4% Electronic Form Printed Form
The reason for a slight increase is the fact that some newly contracted expert financial and economic media do not exist in electronic version. Paper Consumption In 2016, the consumption of office paper dropped by 5%. 2016 2015 2014
85
485,327 510,448 490,583
Environment
Paper Consumption by Type (kg) Year Certified paper
2016
2015
2014
99
2,806
901
50,464
60,110
47,702
ECF / TCF
297,411
322,011
333,217
FSC and ECF / TCF
133,165
121,127
104,591
4,188
4,394
4,172
485,327
510,448
490,583
100% recycled FSC
Non-certified paper Total
The significant drop in the consumption of office paper is a result of efficient actions such as: electronization of contractual documents with clients, offer of services and products in modern, electronic form (e.g. online sale of loans via Internet and mobile banking).
Paperless Loan As a novelty, the clients of VUB Bank have now the possibility to apply for a loan substantially faster and without a single paper. The entire process was shifted from paper forms and contracts to the display of a tablet and in conclusion only a digital signature is sufficient. Thanks to this procedure, in 2016 we managed to save as many as 408 trees. The sale of online loans in 2016 was growing at a considerable pace and the results brought us interesting facts: clients take on loans mostly on Friday, they borrow amounts 20% higher online compared to mobile banking, every third online loan is taken by people via a mobile, Loan sale before – classical form: thousand pages of paper printed annually for clients, loan sale duration approx. 35 minutes 10
Loan sale after - online: of documentation available at the branch, in non-stop banking and mobile devices, saving the client’s time – loan sale duration approx. 14 minutes 100%
Energies VUB Bank has been continuously striving to reduce its energy consumption.
Energy consumption and Efficiency In 2016, in accordance with the applicable legislation of Slovak Republic we ran energetic audits of all buildings where VUB resides or has its branches in lease. The result is a description of the current condition and proposed solutions, which should lead to reduced energy consumption and later on also to their implementation and efficient utilization. Similarly to previous period, we were putting emphasis on economical heating and cooling of our premises and on selection of economical lighting units. For its operation, VUB Bank needs two primary sources of energy – electricity and gas.
86
Environment
In 2016, electricity consumption dropped again as a result of: ongoing effort to lead employees to efficient utilization of energy, purchases of highly efficient equipment, continuous supervision of technology used and its regulation, climate changes. Spotreba priamych energií Year
Electricity
Heat
Gas
kWh
kWh
m3
kWh
kWh
15 000 000 2016
13,747,045
5,781,445
922,599
8,672,431
28,200,921
12 000 000 2015
14,404,261
5,450,163
957,709
9,002,468
28,856,892
14,644,944 5,068,619 887,337 Notes: 156 000 000 1) 1 m3 = 9.4 kWh 123 000 000 2) data were obtained from counter statuses of our contractual supplier 15 the 000 000
8,340,974
28,054,537
9 000 000 2014
Total
9 000 0000
12 000 000 6 000 000 Electricity
2016
2015
2014
2016
2015
2014
2016
2015
2014
2016
2015
2014
2016
2015
2014
2016
2015
2014
2016
2015
2014
2016 4 000 000
2015
2014
2016
2015
2014
4 000 000 2016
2015
2014
2016 4 000 000
2015
2014
2016
2015
2014
2016
2015
2014
000 000 000 159 3 000 000 000 000 000 000 126 000 0 3 9 000 000 000 000 6 000 6 000 000 0000 5 000 000 3 000 000 4 000 000 0 3 000 000 6 000 000 2 000 000 5 000 000 Heat 1 000 000 4 000 000 6 0 3 000 000 5 2 000 000 4 6 000 000 1 000 000 3 5 000 000 2 000 0000 4 000 000 000 000 000 101 000 3 000 000 0 8 2 000 000 000 000 6 1 000 000 Gas 104 000 0000 2 000 000 8 10 000 000 6 000 0000 8 000 000 4 000 000 000 000 000 106 2 000 000 000 4 8 000 000 000 0000 2 6 000 000 000 000
Total 4 000 0000 30 000 000 2 000 000 25 000 000 0 20 000 000 15 000 000 30 000 000 10 000 000 25 000 000 5 000 000 20 30 000 000 0 15 25 000 000
87
4 000 000
10 20 000 000 Total energy consumption stabilized around the values 28.2 GW. Heat and gas consumption, 30 000 000 155 000 000 factor, is influenced also by local exterior temperature and thermal resistance of the building’s 25 000 000 10 000 0000 20 000 000 2016 2015 2014 5 000 000 15 000 000 0 10 000 000 2016 2015 2014 5 000 000
besides the human casing.
Environment
CO2 Emissions Not even in 2016 did VUB Bank monitor its production of emissions, since due to the Bank’s activities this data is negligible. Production of CO2 comes only from company cars and their number is small due to the size of the company, its representation in the regions and number of managers. In addition, in the garage premises of the Bank’s Head Office and in front of some branches we have installed bicycle stands. The aim is to motivate our employees to use even this transport method to commute to work. Renewable Sources Gas is purchased from the local supplier Slovenský plynárenský priemysel. Electricity is supplied to VUB Bank by the largest local suppliers (ZSE, VSE and SSE). These companies guarantee that a minimum of 15 % of the energy they supply is produced from renewable sources. In accordance with the relevant provisions of Act No. 656/2004, electricity suppliers in the Slovak Republic must inform their buyers on the share of individual types of primary energy sources in produced and supplied energy, including the supply of electricity produced in other EU member states and third states, however we do not have the capacity to influence these shares in any way. Also in 2016, the share of primary sources for production of electricity supplied by our suppliers (based on the data they provided) was as follows: Renewable (water, air, solar) 15 % Gas 13 % Coal 20 % Nuclear 52 % Saving Measures Saving measures and modernization of equipment are other contributions that VUB Bank makes to environmental protection and modernization of its operations. In 2016, we continued taking measures aimed at reaching energy efficiency: offices thermal
insulation and heat loss prevention - reconstructions of facades, roofs, replacement of windows, replacement of standard equipment of offices by new one, equipment of buildings modernization of equipment with a higher operating efficiency (cooling machines, air-conditioning units, boilers, pumps and other), heating (reconstruction of networks, hydraulic regulation and other related optimization processes), measurement and regulation – limiting of cooling equipment in the service menu (i.e. temperatures cannot be set too low), reduction of HVAC equipments containing R22 – exchange of cooling equipment containing the R22 cooling agent, which disrupts the ozone layer, installation of modern lighting networks, LED technology, installation of saving aerators on the faucets in the Head Office building continuous
Besides the above, we have been permanently supervising the correct set up of measurement and regulation systems, which control cooling and heating. We simultaneously explain to our employees the basic principles of economical operation. We also introduced further energy saving measures: internal regulations (e.g. economical use of electricity in the offices, principles for use of air-conditioning, cooling and heating – setting of interior temperatures in cool and warm periods), obligatory switching off of PCs outside working hours, during weekends and holidays, sending of electronic invitations instead of paper ones, video conferences instead of business trips, use of bicycles.
Water All VUB Bank’s branches in the whole territory of the Slovak Republic are supplied water by local water companies. We do not take water directly from a water source, but from water companies in the regions or small local suppliers. We do not receive or require the data about water sources or the use of recycled water from our suppliers.
88
Environment
In 2016, our water consumption decreased by 12%. The average daily water consumption was 101.7 m3, which represents on average 29 litres a day per employee. Total Water Consumption (in m3) 2016
37,102
2015
42,190
2014
48,516
Average Daily Water Consumption Year Bankwide (in m3) Per Employee (in litres)
2016
2015
2014
102
116
133
29
32
38
VUB Bank’s water consumption within its business activities is not significant, thus it does not impact the local water sources in any material way. We use water efficiently, namely for personal hygiene and minimally for the operation of equipment (heating, cooling circuits, etc.) and watering. Water Savings Reached by Aerators During 2016, in the Head Office building of VUB Bank, in a pilot operation, we installed faucets with a water saver, so-called aerator. Although it is the beginning of the project and the number of aerators in phase 1 was only 94 pieces, the savings reached represent 493 l/min. The daily saving was 4.95 m3, annually we saved 1,237 m3 of water. The actual saving of drinking water is even bigger considering the saving of energy necessary for its heating (estimated 40% of the saved water is warm).
Wastes Waste management is aimed at removal or modification of wastes in ways acceptable for the environment. Education of employees plays an important role in minimizing wastes. Waste separation is managed through the process we have in place, which is binding for all employees. Its wording is available on the Intranet page and the employees have been informed of it several times during the year in form of personal e-mails and educational materials. In our objects in the whole territory of Slovakia, we separate paper waste only. In the VUB Bank’s Head Office building in Bratislava we separate waste into: paper (cardboard), plastic, metal, glass, mixed communal waste, hazardous waste. In 2016, we separated 33,850 kg of paper, which represents 576 trees saved. Waste – Separated Paper (in kg) 2016 2015 2014
89
33,850 (575 trees saved) 25,248 (428 trees saved) 45,281 (768 trees saved)
Environment
Types of Waste Liquidated (in kg) Year
2016
2015
2014
0
0
0
220
1,200
60
Absorbents, other filtration materials
0
0
0
Packages containing hazardous substances
0
0
0
Waste toner from printers
1,320
330
487
Voluminous waste
8,650
43,160
3,507
Lead batteries
0
0
0
Plastic and rubber
0
0
0
100
0
75
0
0
0
820
5,340
468
0
0
0
1,050
1,747
0
0
0
0
Metal packages polluted with harmful substances Plastic - payment cards
Discarded equipment (fluorescent lamps) Discarded refrigerators (content of hazardous substances) Discarded equipment (other) Polystyrene Discarded equipment containing hazardous substances Discarded transformers in units Note: potential statistical variances
Hazardous waste represents only an insignificant portion of the total waste. Hazardous Waste Containing Remnants of Hazardous Substances (in kg) Year
2016
2015
2014
kg
2,370
5,574
135
We have been continuously replacing all cooling equipment containing the cooling agent R22 given the strategic importance of the premises where they are located. Due to a higher efficiency of new machines, we recorded a significant reduction of electricity consumption during the cooling period, by as much as 80%. Total Quantity of R22 Cooling Agents Year
2016
2015
2014
kg
381.4
1,900
2,100
INDIRECT IMPACTS VUB Bank is not limited only to minimization of negative impacts of its business on the environment, but it also supports ecological thinking and behaviour of its employees and clients, which influence the environment as well. Employees In 2016, there were no changes compared to the previous years, i.e. the instructions and guidelines we had set up for the users of buildings (how to efficiently use the equipment and how to ensure an optimum microclimate in an object) did not require any updating. However, our employees are continuously being informed of them and at the same time they have the possibility to read them again at any time, since these documents containing the definition of our direction in the area of environmental protection are stored and available on VUB’s Intranet.
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Environment
Over the year, all employees are encouraged in form of awareness raising activities and internal notices to: save paper and consumer material, turn off their PCs outside working hours and on holidays, separate waste, reduce water consumption and report its potential leak, use the energies economically (with a focus on cooling equipment in the summer period, use of daily light, turning off of lights when leaving the workplace and other.). We fully realize our responsibility with respect to climate changes and their impact on the environment. Energy consumption is globally growing and will continue to grow, therefore it is important for everybody to start with oneself. Today, we would barely survive without energy-consuming technologies, so we cannot exclude them from our private or work life. However, we can think about what appliance with what consumption and efficiency we choose. We also live in a so-called era of SMART solutions, so let’s try to be smart ourselves and think about whether it makes sense to be cooling and having a window open at the same time or if we need the lights on when we have sufficient day light. Eco-friendly Office – Stickers In all interiors of the Head Office building, we posted promotional information stickers aimed at: alerting and raising awareness about saving light and energies, how to efficiently air, cool, what to do in case a water leak is detected. In addition, manuals for controlling cooling and heating equipment were distributed in the Head Office. Do not cover me – do not cover parapets or ceiling outlets Turn me off – when leaving the room turn the light off and use the daily light as much as possible. Clients VUB Bank has been successfully replacing paper account statements with electronic ones. Not only because an electronic statement is more modern and easily available in one place and at any time, but it is rather also a demonstration of our responsibility towards the environment. Currently all VUB Bank clients with access to Internet Banking are able to view their electronic statements to their current and term accounts, as well as to payment cards, loans and mutual funds. Switch to e-Statements In November 2016, VUB Bank motivated its clients to switch to electronic statements. With the motto “switch to e-statements, have an easier life“, it addressed all its clients, but also employees to change the statement delivery mode from paper to electronic. Using humorous apt pictures and slogans, the Bank called on all account holders to join in and save place and nature thanks to electronic statements and to protect their personal data. The Bank drew attention to simplicity of the change and advantages of the electronic PDF format by means of an instructional video in order to give the clients the highest possible motivation to change and to contribute to an ever greater reduction of negative impacts on the environment. Suppliers When selecting our suppliers, we prefer environmentally conscious suppliers – use recycled materials, save energies and reduce their negative environmental footprint. We require our suppliers to provide us with a declaration that they are taking preventive measures in relation to environmental protection and strive to reduce the negative impact of their business on the environment. Signing the declaration, the supplier declares to VUB Bank that it will take steps leading to a greater responsibility towards the environment, support the use of ecological technologies or search for new and efficient environment-friendly solutions. Also owing to these procedures implemented, in 2016 there was no contamination of the environment involving the responsibility of VUB Bank. In the area of facility management, reconstruction, redesign and construction works, VUB Bank cooperates with
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companies that systematically address environmental protection with their activities in all aspects of their business. The same applies also to the supplier of cleaning services, supplier of services connected with protective work aids, health and occupational safety and civil protection, as well as to suppliers of the interior, lighting or exterior signage (light logos on buildings and ATMs). Besides production and provision of services, their activities should be aimed at energy savings and waste minimization. Our significant suppliers, similarly to VUB Bank, have incorporated all the environmental standards into their activities and profess a responsible approach to the environment. Materials The aspects influencing the environment include consumption of office paper, consumption of toners for copying machines and printers, collection and liquidation of used packaging and also cooperation in the area of facility management with ISO 14001 certified companies. Purchase of office paper is limited to chlorine free paper (TCF) and recycled paper. We buy office paper principally from certified producers and with paper origin labelling. Our internal policy sets the principles for purchase of paper with the aim of: using 100% recycled paper in the greatest extent possible, using ecological certified paper, reducing the consumption of non-certified paper as much as possible, preferring the purchase of paper from certified producers with origin labelling FSC or potentially CSA or PECF, purchasing and using the ECT (Elemental Chlorine Free) or TCF (Totally Chlorine Free) type paper of bleached paper. By preferring the purchase of FSC raw materials, we contribute to improvement of forest management around the world. We are preventing destruction of forests as well as illegal tree harvesting worldwide. We do not even disregard the issue of bleaching the used wood mass, and we therefore purchase and use, as much as possible, the ECT paper type (Elemental Chlorine Free – meaning that in its production they used chlorine gas, but no chlorine derivatives such as chlorine dioxide) or TCF (Totally Chlorine Free). For all postal consignments addressed to our clients, we use ecological envelopes made of purely natural materials labelled with the certified Green Energy logo. On envelopes with the Green Letters logo, in which we send account statements to clients we put the message of VUB Bank as a company saving the environment.
Biodiversity None of VUB Bank’s activities affects the biodiversity. We do not perform any activity that would directly disrupt the environment, and therefore indicators related to biodiversity are not relevant for us. VUB does not own any facility, neither does it dispose of any leased premises that would interfere with or be directly located in a protected territory. For 2016, we do not record any contamination of environment in the surroundings of our facilities. Since we are not a production company, we did not cause any considerable water pollution. We do not own facilities, from which sewage would be discarded into the environment and pose a threat to the biodiversity of water reservoirs. Water is drained off in a standard way to the sewerage system and then processed in waste treatment plants. Environment and Lending Policy We contribute to protection of the environment also by keeping accounts and providing loans and borrowings to companies and non-governmental organizations having as their core business ecological activities. Sustainability of the environment is one of the basic pillars of our corporate responsibility strategy. We not only want to cooperate with partners, who deal with environmental protection and sustainability, but we ourselves want to participate in sustainable development.
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One of VUB Bank’s main activities, the lending, incorporates standards concerning the environment. The Bank does not provide funds for financing of some activities from the environmental point of view including: trading in wildlife or products made of it, release of genetically modified organisms into the natural environment, production, distribution and use of prohibited pesticides, herbicides, chemical or agrochemical substances, fishing by means of floating nets, radioactive substances including radioactive waste. If a client consciously engages in areas risky from the environmental point of view, the Bank requires a due diligence aimed at client’s environmental risk management. Below, we specify examples of risky activities and business areas from the perspective of the environment: storage of hazardous waste, its modification and liquidation, production or trading in freon-containing equipment and appliances, production or trading in electrical equipment containing polychlorinated biphenyls (PCB), production or trading in products containing asbestos, foreign trade in waste or waste products. Within our lending policy, we finance only companies complying with the legal regulations concerning the environment. We support companies meeting the requirements for environmental protection stipulated by the legislation of the Slovak Republic or the European Union. Loans within corporate financing are granted also to clients from sectors, where environmental risks can be expected, however we examine them in detail. From the green-energy oriented perspective, we offer product contributing to a permanent sustainability of the environment. We paid increased attention mainly to the areas of: agriculture, self-administrations, renewable sources, energetic efficiency. The projects financed contribute to environmental protection – reducing the CO2 production and thereby improving the environment, protecting people’s health and also natural resources, contributing to reduction of air pollution and reducing energy consumption. Environmental Products of VUB Bank loans for investment projects aimed at energy savings and renewable sources, “green energy” projects in case of Slovak companies, loans aimed at energy savings and production of energy from alternative energy sources (water power plants, biogas stations, equipment for biomass combustion and photovoltaic power plants), investment loans for support of infrastructure’s energetic efficiency and renewable energy sources of municipalities in Slovakia, loans for associations of apartment owners and owners of residential buildings in the effort of supporting projects aimed at reaching energetic efficiency. Green Energy and Energy Efficiency Projects In 2016, we granted funds for 8 projects in the field of renewable sources and energy efficiency in the total amount of EUR 1,704,563. In these projects, we used the funds from the European Bank for Reconstruction and Development. Investment Loans from EBRD SLOVSEFF III Sources to Support Energy Efficiency and Renewable Sources of Energy in Slovakia (SLOVSEFF III Program) In 2016, VUB Bank obtained new funds for the financing of projects reducing the greenhouse gas emissions. It signed the SLOVSEFF III. (Slovak Sustainable Energy Financing Facility) credit line with the European Bank for Reconstruction and Development in the volume of EUR 15 million and thus expanded the original loan agreement of December 2014. Projects from the industrial sector, area of renewable energy sources and energy efficiency in the residential housing sector had a chance to obtain financial support. Private companies, ESCO companies (private companies providing services in the energy sector), associations of apartment buildings and administrators of residential houses could apply for the funds. The amount of potential loan ranged from EUR 20 thousand to 10 million depending on the type of project. In 2016, the volume of loans granted represented EUR 1,704,563.
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Environment
EIB – VUB Convergence and Mid-Cap II-B Loans The support involved projects for reconstruction of manufacturing halls, local communications and purchase of modern printing technology. The loans granted were in the volume of EUR 5,572,000. Loans in the area of renewable sources 2016
2015
Project Type
Number
Investment Volume in mil. €
photovoltaics
1
5
2
water energy
–
–
combined production electricity / heating
– 1
biogas * Financed from EIB funds.
2014
Num- Investment Voluber me in mil. €
Number
Investment Volume in mil. €
3.5
3
17.88
2
13.5
1
10.00*
–
–
–
–
–
12
–
–
–
–
Investment Loans for Owners of Apartments and Non-Residential Premises Managed by an Administrator or Associations of Apartment and Non-Residential Premises Owners With the aim of coming as close to our clients’ needs as possible, in 2016 we innovated this product and enabled clients to get a better access to financing of projects aimed at achieving energetic efficiency. Our clients have again the possibility to obtain a non-refundable grant in the amount of 10-15% of the loan volume provided that the loan is financed and/or co-financed from the credit line from the European Bank for Reconstruction and Development (EBRD). The condition is a minimum 30% energy savings achieved by project implementation compared to the original status. In 2016, this investment loan was used by 43 clients in the total investment amount of EUR 6.1 mil., thereof 2 loans in the amount of EUR 249,063 were financed from the EBRD line. Loans for Associations of Apartment and Non-Residential Premises Owners Year
2016
2015
2014
Number of Loans
43
28
24
Volume in € mil.
6,1
4,6
6,5
VUB Bank has been cooperating with the European Bank for Reconstruction and Development since 2007. It successfully participated in the preceding programs SlovSEFF I., SlovSEFF II. and MUNSEFF. Through these programs, it provided its clients with loans in the total volume of nearly EUR 50 million. All of them financed activities aimed at energy saving in industry, gaining energy from renewable sources and at projects in the area of housing sector, as well as at supporting energy efficiency in the municipal sector.
Other Initiatives for Reduction of Environmental Impacts of Our Products and Services Organization of Corporate Events and Internal Training Courses The policy addresses the issues of paper consumption, use of office appliances, transport, accommodation and catering when organizing corporate and training events. With the aim of reducing paper consumption, we for example stopped using printed invitations and we principally use online registration forms. We do not provide studying materials in printed form anymore, but we send them only electronically. In case the printing of documents is inevitable we use recycled or certified paper and print in the duplex mode. We use recycled and recyclable materials and we use mainly eco-friendly notebooks, pens and other office supplies. The events are mainly held in energetically saving buildings and in locations easily reachable by public transport (limitation of travels by cars in order to reduce the production of CO2). In case of accommodation and catering we give preference to supplier companies with an ecological approach. Organizing all types of events, we monitor environmental criteria and try to improve them.
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Environment
Environmental Initiatives and Events Since UN announced the theme (trade in wildlife African and South American animals, their saving and protection in natural environment) and the global slogan Go Wild for Life, in 2016 VUB Bank decided not to run the significant internal campaign within the World Environment Day (annually held on June 5). However, the employees were prompted by internal channels to do something for the environment. We realize that also such a small thing as a correct selection of a means of transport, contributes to sustaining or even improving the environment that surrounds us all. This is the reason we motivated our employees according to the slogan Going to Work on a Bike to use this ecological means of transport. European Mobility Week, each year during the second September week, was held from September 16 – 22, 2016. The aim of the sustainable urban mobility campaign, supported by the European Commission, was to encourage the people to use alternatives to personal car transport (the slogan was Intelligent and Sustainable Mobility) and offer instructions how intelligent mobility can contribute to the economy, healthcare or improve the problems with unemployment. VUB Bank decided to participate in the project with its own activities and the campaign entitled Give Your “Honey” a Break! We prepared a lively campaign for the employees including competitions for alternative means of transport. Give Your “Honey” a Break! The campaign informed employees on intelligent and sustainable mobility by means of an interesting video, an apt branding at parking lots encouraged the colleagues to give their “honeys”, i.e. cars, a break this week and use more saving transport methods. VUB Bank stressed realizing of the importance of environmental protection by saving energy also by targeted messages – stickers near lifts that encouraged to use an alternative method of moving around the building – by walking the stairs. The campaign included a competition for a scooter. The employees could participate in the competition by sending the most creative picture proving the use of alternative mobility. With the prize, VUB Bank supported the winning employee in environmental protection even after the European Mobility Week was over..
Paper Saving Initiatives Paperless Signature Authorizations and Specimen Signatures In late 2015, the Bank started testing the functionality and approval workflow of the processing of requests for signature authorization and specimen signature on a selected group of Bank units. The change against the previously used method occurred in 2016 and it involves a complete elimination of paper form as well as an easy and fast selection from the matrix of signature authorizations for the given job position. Messages in Electronic Communication Each outgoing e-mail message of VUB Bank is terminated with a statement “Before printing the e-mail, please consider the impact on the environment.” Paperless Internal Regulations In the area of internal regulations, VUB Bank shifted into a qualitatively higher level of commenting, approving and issuing internal documents, mainly thanks to the processing in the IT application’s environment. According to the new rules, all internal documents, regulations, policies and other documents are all totally “paperless”. The entire life cycle runs on Sharepoint, where documents are processed from their drafting, through commenting and up to their completion and publishing. Meal Cards In 2016, we replaced the paper meal vouchers with TR cards. TR card is an electronic form of paper meal vouchers and it is determined for purchase of meals by means of payment terminals or without using a POS terminal via an SMS in operations of contractual partners. By cancelling the paper vouchers we could also cancel the personalized delivery of vouchers in envelopes, by which we saved even more trees.
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Community and Environmental Protection Our Town In 2016, the volunteering environmental activities of VUB Bank employees became part of the national event entitled Our Town. In June, on the occasion of the World Environment Day the employees participated in an event aimed at beautifying, cleaning and improving the town they live in. The activities were held in 10 Slovak towns, whereas the most important one especially organized for VUB was the Small Danube Cleaning. In cooperation with the non-governmental organization the Tree of Life (Strom života), on boats our colleagues cleaned the river-basin of Small Danube from litter, which is washed away from our capital. As a big town, Bratislava produces a lot of waste, but it is sad that a lot of it ends up in the Danube and travels by the river further. Small Danube as a distributary of the Danube gathers this waste and it travels in its river-basin. The task of volunteers was to take out the litter from the water and from the branches caught up on the river banks Grants for Ecological Projects Through VUB Foundation, we supported also several ecological projects and events organized by non-governmental organizations. In 2016, VUB Foundation contributed to execution of 18 projects of non-governmental organizations, employees and self-administrations by supporting it with the amount of EUR 68,400. The projects were focused on ecological education and environmental protection, for example School Recycling, Eco-Classroom, School Garden and Cultivation of Flowers and Vegetables, Green Classroom, “Neleň pre zeleň” – Planting Town Greenery, Primary Bee-keeping School Founding, BioRoute – Instructive Signs and Tree Plating, Eco Squad in Action, Revitalization of Former Illegal Waste Dumps and their Transformation into Sports Centre etc. Grant Support of Ecological Projects The Bee Leisure Centre (Včielka) ran the project entitled Bees Connecting Generations, which managed to bridge the gap between generations and develop cooperation between the younger and older generation, participate in the saving of bee-keeping, provide seniors an opportunity to assert themselves and bring them a feeling that they are still needed and useful. The project involved manufacturing of bee wax candles and decorations, creation of decorations for the bee-keeping museum, planting of plants favourable for bees and also discussion about bee products.. Destroyed, not used gun warehouse in Martin was transformed thanks to enthusiastic volunteers from the fire department into an oasis of relax and sports – Vital Park, a relaxation area. The park features a fire museum unique in Slovakia, agro farm, gazebos and barbecue fireplaces, volleyball and petanque courts and also a bike pump track. Vital Park is also a place for family sports activities, with benches, bike stands and a lot of greenery.
Ecological Partnerships Danube Fund The Danube Fund coordinates financial and other sources for support of community development activities, which are performed along the entire flow of the Danube River in the Slovak territory. The grant scheme financed by the VUB Foundation in cooperation with the Central European Foundation provides the possibility of cooperation for self-administrations of towns and municipalities near Danube, but also for non-governmental organizations and various leisure associations and professional public. The Fund supports projects, which are searching for solutions of a better and closer interconnection of the river with the urban environment, protection of natural heritage and sources, possibilities of movement along the stream and across the river and connections between urban centres, nations and cultures living on the banks of Danube as well as other activities that will bring life on the river.
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In 2016, on the occasion of World Environment Day we announced the results of the 1st grant scheme as well as ecological projects that received a grant from VUB Foundation. The supported and executed projects included for example improvement of access to water and building of a slalom trail in Karloveská Cove in Bratislava, construction of a raft track and instructive route for rafting on the Small Danube, building of a monument for the holocaust victims on the bank in Komárno, design of potential urban solutions of the Danube bank in Bratislava and their presentation to the public by means of 3D virtual applications and development of sports and recreational activities for the public in form of rowing courses and organized rafting trips on the Danube.
Danube Solstice POn the occasion of World Environment Day, VUB Foundation in cooperation with the organizations supported within the Danube Fund grant scheme prepared an adventurous series of ecological activities for the month of June named the Danube Solstice. The activities included for example Children’s Day on Small Danube – short sailing trips for kids, Opening of the Instructive Path “From Mill to Mill” – a set of technical monuments – water mills, rafting on the Small Danube on Wooden Rafts – in the beautiful natural scenery, many types of water birds, sun-bathing frogs, river otters, fish could be seen, Open Bird Observatory Day, Green Squad in Floodplain Forests – collecting waste and liquidation of illegal waste dumps located in the area of protected floodplain forest near the Danube. 2016 IFF Ekotopfilm – Envirofilm Also in 2016, VUB Foundation financially supported the International Film Festival Ekotopfilm – Envirofilm. The festival helps to spread the message of environmental protection, inform the people about various environmental topics and engage in discussions at lectures. The most guests attended the lecture of the renowned primatologist Dr. Jane Goodall, who talked about her mission, her life with the chimpanzees and also about her environmental project Roots & Shoots that she spreads across the world. Junior Festival It is thanks to VUB Foundation that the Ekotopfilm Festival is able to deal each year also with educating pupils and students of primary and secondary grammar schools by means of the Junior Festival. The schools could attend the screening of a film program tailored to their age category which was then followed by interesting accompanying activities such as various games, activities, competitions and lectures with the environmental education topic. This year, the festival welcomed more than 6,000 children in 5 days. VUB Foundation sponsored the admission to the whole festival for all children, which was free of charge.
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Community
Community Strategy VUB Bank feels responsible for the society, where it operates and which it impacts with its business activities. Also in 2016, the Bank continued in helping the community, where our clients, employees and other stakeholders live. The needs of communities are identified by means of meetings with the representatives of communities, third sector, school system and other entities. The meetings are organized by the Corporate Responsibility Sub-department. VUB Bank supports projects and activities in identical fields as VUB Foundation in order to achieve a synergic effect. These are the areas of art, charity, education and community. Within the field of art, we have been long-term focused on protection of cultural heritage and support of contemporary art with an emphasis on fine arts. Last year, VUB Bank by means of the VUB Foundation enabled the saving of several monuments and continued in the restoration of the Calvary of Banská Štiavnica. In 2016, VUB Bank showed its interest in arts by supporting the Cirkul´art 2016 festival, which is an international exhibition of creative and genre-rich artistic productions with a focus on contemporary theatre and modern circus from various parts of the world, the White Night festival. It brought to Bratislava and Košice a portion of contemporary art in form of visually interesting art installations, digital art, mapping, performance, concerts and dance and the Grape festival, which brings to Slovakia world stars of indie, pop/rock and electronic scene every year. In the field of charity, we continued in our several years’ initiative Good Angel (Dobrý anjel). We have supported this humanitarian project by means of charity payment cards for ten years already. VUB Bank realizes the significance of inclusion of disabled people and therefore it purchases products and services from sheltered workshops that employ these people. An inclusion project for disabled people was also an activity entitled “This Coffee Will Be Really Good“. The Head Office of VUB Bank welcomed Mr. Králiček with his coffee cart and our employees, by buying the coffee, could contribute to the educational and rehabilitation centre BIVIO to help mentally disabled people. At the same time, the people from this centre could try out the sale and service. Within the charity activities, every year VUB Bank organized several times in the year in cooperation with the Slovak Red Cross the VUB Blood Drop. In 2016, employees could donate to the collection of SRC directly at the Head Office’s reception. VUB Bank is aware of the importance of financial education and increasing of financial literacy of various communities. Support in the field of education is annually provided by lectures of our Bank’s managers at secondary schools and universities of economy and finance specialization. We provide know-how to start-ups, mainly women – starting women – through the project VUB Academy for Business Women. VUB Bank supported start-ups also through the foundation grant program for communities, in which it awarded projects from community business for the first time. VUB Bank cares about its employees participating in volunteering activities. Through the VUB Foundation it helped 21 organizations to execute projects involving the participation of VUB Group employees. They were engaging in volunteering activities which helped various communities also throughout the year. In 2016, VUB Bank pleased the community of runners by supporting the project From Tatras to Danube (Od Tatier k Dunaju), which is one of the biggest relay races in Central Europe. The runners were on the 345 km long route from Jasná to Bratislava day and night. Financial and Material Aid VUB tries to help by various forms. The greatest financial assistance represents the financial aid to VUB Foundation, which then distributes it to different communities in form of grants. Overview of Financial Donations Year Total amount of donations in €
98
2016
2015
2014
225 thous.
200 thous.
238 thous.
Community
VUB Bank strives to support organizations also non-financially. Within this kind of help, it sells off mainly discarded desktop computers at symbolic 3 cents a unit to organizations that send their requests. Number of IT Equipment Units Donated Year
2016
2015
2014
units
117 units
93 units
72 units
In 2016, due to modernization of branches and office premises, VUB Bank helped many non-profit organizations and schools by donating office furniture. Other Types of Aid Cooperation with Non-Profit Sector At the end of 2016, Slovakia counted over 188,411 “good angels“, thereof more than 45 thousand were the clients of VUB Bank thanks to the unique charity payment card. VUB Bank has been issuing the card for the Good Angel. Half a percent of the payments performed by the Good Angel card goes to the account of the non-profitable organization helping oncologic patients and families with gravely ill children. This money is not donated by the cardholder, but by VUB Bank on his/her behalf. More than 7,739 families received donations through this system. Year Number of Good Angel cards issued VUB’s contribution in euro (0.5% of payments performed by clients’ cards)
2016
2015*
2014*
45,830
40,267
36,797
306,757
383,573
315,981
*In 2014 and 2015 the contribution from VUB Bank amounted to 1% of the performed payments. In 2016, VUB Bank’s contribution was reduced to 0.5% of the performed payments (based on the Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015 on interchange fees for card-based payment transactions).
In 2016, VUB Bank decided to provide “good angels“ with new possibilities of sending their financial donations and helped also by a fundraising campaign. VUB Bank allows the clients: to send for each payment by the Maestro GOOD ANGEL debit card 0.5 % of the payment to Good Angel, whereas this amount is not paid by the holder but by VUB Bank; set up the FLEXI SAVING, in case of which it is possible to ask for forwarding the rounded part of payments, when paying by card, to a whole 1 euro in favour of the Good Angel account; set up a standing order for a voluntary amount to the account of Good Angel; make a one-off contribution via the ATMs of VUB; make a regular or single online contribution from a credit or debit card by re-routing via Internet Banking to the website of Good Angel; help at any time and anywhere by scanning a QR code and entering the amount in the Mobile Banking. In each case, the donor receives log in data that enables him/her to follow whom their contribution helped.
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Community
Cooperation with Sheltered Workshops
VUB Bank deliberately supports the functioning of sheltered workshops by purchasing their products and services. In 2016, we purchased from them goods and services in the total amount of EUR 53,200. This amount represented: catering
for some events organized by VUB Bank, of promotional gifts determined for clients, employees or their family members, impress services (Bank’s logo on representative merchandise). purchase
The money invested is perceived as a value added for the Bank, its clients and employees alike. It presents an opportunity to interconnect corporate responsibility and the Bank’s everyday business. In December, VUB Bank’s Head Office building hosted the traditional Christmas Fair, to which the employees could bring also their children. Together, they could enjoy the holiday atmosphere and the products sold there by 8 sheltered workshops from around Slovakia. This year, VUB Bank decided to support the sheltered workshops by extending their selling time to two full days. The products that they were selling were made by handicapped people. The employees had the opportunity to buy gifts for their relatives and simultaneously support a good cause. Cooperation with Schools and Support of Education One of VUB Bank’s priorities is education in the main area of our business – economy and finance. Our projects offer talented students a possibility to put forward their original ideas and demonstrate their talent. Their goal is to improve the quality of research and university education in the field of finance and develop the economic science and research. VUB Bank has had a long-term cooperation with secondary schools and universities of mainly economic, mathematic and IT specialization. In the interest of making education in the finance, economy and banking fields more attractive we: provide consultation activities in elaboration of a thesis or annual school project, give the possibility to secondary school and university students to perform their expert, bachelor and thesis internship with us, hold technical topical lectures at secondary schools and universities, organize an international scientific competition. The activities for students are designed as to provide an overview of the functioning of individual divisions of the Bank and the students can test their skills and knowledge from their studies in practical tasks. One of such activities is also the “Internship and Work” (“Stážuj a pracuj“) program intended for university students. The program presents to the students the Bank’s functioning and enables them to try to work in the Bank during several months. By gaining real-life work experience, the students will get an idea about banking which will help them to better choose their direction to head after school. During the internship, they are engaged in concrete work tasks, have their own development plan, participate in trainings, work under the supervision of a mentor and get feedback on their performance. The most skilled ones will get the possibility to apply for work positions with VUB Bank or remain in a temporary work relation. Engaging Employees in Community Life Also in 2016, VUB foundation supported engagement of employees into activities beneficial for communities, in which they work and live. It appreciated their willingness and effort to help by means of employee programs, which are very popular among the employees. Eligible for financial support were organizations, in which employees of VUB Group are engaged. It does not need to be a long-term engagement, although it is appreciated the most, but supported were also projects, in which employees participated also on a single occasion. VUB Bank wants its employees to sense the wonderful feeling when one is helping others and motivate them to further activities. Supported were projects in the area of charity, education and leisure activities for children and youth, which were open for non-profit organizations, schools or local self-administrations. It is a way how to support ideas and projects, which our employees consider meaningful and useful: together they address an issue in the community, support community activities or a civic association. In 2016, within the employee grant program Help Your Community there were a total of 140 projects enrolled and support was provided to 21 organizations worth EUR 29,985. The submitted projects were assessed by a committee, in which besides the experts, there are also the Bank’s employees represented.
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Support of Employee Community Projects Year Number of projects enrolled Number of projects supported Grants provided in euro
2016
2015
2014
140
166
136
21
24
20
29,985
29,923
19,904
The number of submitted projects fell due to the fact that at the beginning of 2016, employee grants were provided to the projects from the We Like School (Škola nás baví) program selected back in 2015. This was the reason why in 2016 we could enjoy the results of executing 45 projects from two programs even. Volunteering VUB Bank values the good hearts of its employees and through VUB Foundation it supports and motivates them to participate in these activities. All teams, which selected to spend time within teambuilding by volunteering work, the foundation provided a grant for support of organization that the employees helped in this way. In 2016, the employees participated in a traditional volunteering work at the Calvary of Banská Štiavnica with the presence of the CEO, or in activities within the Our Town project, when they cleaned the Small Danube. It has already become a tradition that each year the employees donate blood during a mobile blood collection “VUB Blood Drop“ organized in cooperation with the National Transfusion Service. In 2016, 108 donors participated in collections having donated 54 litres of the life-saving liquid. Volunteering activities of our employees are supported also by the Employee grants foundation program. „We Are Equipped with a Defibrillator“ As a bank we realize that life and its protection comes first. Therefore, we are equipped with an automatic external defibrillator (internationally marked as AED = automated external defibrillator). The building of VUB Head Office is labelled with stickers of a big red heart with a lighting in the centre, which alerts the employees, clients and by-passers about the fact that we are equipped with this simple and at the same time vitally important device. In connection with AED we had several bank employees trained by a significant rescuer. All received a certificate for handling and using the defibrillator in case of first aid. Although we have AED in VUB Bank, we are at the same time glad that ever since we bought it we have had no case when we would actually have to use it. However, it is important to be constantly prepared. 2016 VUB Foundation Activities VUB Foundation is an independent legal entity, however, it executes some of its activities and projects in close managerial and financial cooperation with VUB Bank and therefore we publish them also in this report. All activities of VUB Foundation in 2016 are comprehensibly presented in its annual report on the web page www.nadaciavub.sk. VUB Foundation has carried out its activities in the field of philanthropy since 2003. It is financed by assignment of income tax from VUB Group (in 2016 it obtained from the Bank’s subsidiaries EUR 70,790.49 and from the Bank itself EUR 883,605.70) and by financial donations VUB Bank (EUR 225,000 in 2016). VUB Bank provides its foundation with personnel, material and administrative support. In 2016, the Foundation contributed to several community projects with the amount of EUR 893 thous., whereof the majority of funds went to support of art and cultural heritage (44%) and to the area of charity (24%). The area of education received 16% of the funds and the same percentage went also to fund the community. Overview of Grants Provided Year Support provided in euro Number of projects supported
2016
2015
2014
2013
2012
893 thous.
633 thous.
547 thous.
633 thous.
640 thous.
121
89
70
77
100
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VUB Foundation focuses on the following areas: artistic and cultural heritage – For Art Foundation Program, education – For Education Foundation Program, charity – For Hope Foundation Program, active communities – For Community Foundation Program.
For Education Foundation Program
The grant program of VUB Foundation International Guest Professor enables universities of economic specialisation to invite guest experts from abroad for a semester. Besides the pedagogical engagement of significant international experts at Slovak universities, the program brings the students an opportunity to work with a foreign professor on scientific papers according to the methodology implemented by foreign universities. It also motivates the students of economy, doctoral graduates and pedagogues to actively engage in the economic science. During the winter semester of school year 2016/2017, the University of Economy in Bratislava in Slovakia hosted professor Roman Horváth, Ph.D. doc., who gave the students an insight into the area of currency economy, applied econometrics and financial stability. In the summer semester of 2016/2017, the University of Economy in Bratislava will also welcome professor John Gilbert, where he would model the Slovak economy with the students. In 2016, other two foreign professors were selected for the school year of 2017/2018 - professor Edward M. Bergman, PhD., who will be spending a semester at the Faculty of National Economy at the University of Economy in Bratislava and professor Bill N. Schwartz PhD., who will be passing on his expert knowledge to the students of the Faculty of Management at the Comenius University in Bratislava. In the interest of supporting and developing the economic science and research in Slovakia, especially focusing on education and training of young economists and increase of their publishing activities, every year VUB Foundation announces a competition of all scientific papers in the area of economic sciences called Economicus. The competition is connected with an award for the best published scientific paper in the field of economy and finance published in renowned international magazines. The winner will be announced in 2017.
For Art Foundation Program
The activities of VUB Foundation focused on cultural heritage and fine arts derive from the tradition of enhancing the country’s artistic and historical heritage, which is characteristic also of the Italian owner of VUB Bank, the banking group Intesa Sanpaolo. Preservation of Cultural Heritage In identifying and selecting the monuments in need for help, we cooperate with local partners and experts. Besides restoration, our objective is also to raise awareness about the treasures of our country and at the same time of our national heritage’s vulnerability. In 2016, VUB Foundation contributed to preservation of cultural heritage with the amount of EUR 391 thousand, which was dedicated to restoration of monuments and objects in different corners of Slovakia. In 2016, within the Treasures of My Heart competition, the frescoes in the Church of Saint Martin – the Bishop in Čerín and frescoes on the arch of the Saint Stairs at the Prešov’s Calvary underwent restoration. Already since 2008, VUB Foundation has been supporting the reconstruction of Banská Štiavnica Calvary, one of the most precious monuments in Slovakia. This UNESCO protected national monument Calvary in Banská Štiavnica has been in a dilapidated condition for a long period of time and in 2007 it was put on the list of 100 world’s most endangered monuments. In 2016, VUB Foundation supported its renovation by extending the cooperation agreement and increasing the donation amount to EUR 100,000 for the period of the next 3 years. With the support of VUB Foundation, in 2016 a Visitor’s Centre was created which attracted even more tourists, restoration of the Ecce Homo chapel was completed and the Calvary had the chance to present itself to the world. Three precious reliefs from the Calvary, which were restored from the contribution of EUR 51,000 made by the parent company Intesa Sanpaolo, were admired in Italy, in the renowned Gallerie D’Italia of Milan at the exhibition of renovated monuments La belleza ritrovata. Support of Contemporary Fine Arts Inspired by the example of its parent bank, VUB Bank engages itself also as a supporter of art. In cooperation with the VUB Foundation, each year it organizes an artistic competition entitled Painting - VUB Foundation’s Award to Young Artists for an Artwork to support talents in the painting medium. The winners, besides the recognition of an expert international jury, receive also prize money for development of their talent. Each year, the competition
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is connected with an exhibition of finalists, through which the foundation is trying introduce the young Slovak art to the public. In 2016, within the 11th annual competition, the exhibition was held in the Nedbalka Gallery and thanks to the VUB Foundation the admission was free. Exhibition of the competition’s finalists was incorporated also into the White Night festival. Last year, the exhibition entitled 10 Years of Painting (10 rokov Maľby) continued in its tour around Slovakia. It was created on the occasion of the Painting competition’s 10th anniversary. The entire exhibition collection of 30 young Slovak artists was showcased also in Italy, in the famous Milan gallery Gallerie D´Italia. Talents from the Painting competition are presented in the virtual gallery at www.malbaroka.sk.V.
For Hope Foundation Program
Within this program VUB Foundation engages mainly in the area of charity and healthcare. It helps the disadvantaged individuals and groups to equal their chances in life. It finances the therapies for physically and mentally disabled people and helps the foster families. In the area of healthcare charity, we donated EUR 219 thousand to medical therapies, purchase of devices and equipment of hospital wards. The grantees included the National Register of Bone Marrow Donors and the rehabilitation centre ADELI in Piešťany. VUB Foundation helps the handicapped and ill people by providing grants to organizations dedicated to healing of these people in form of art therapy and animal-assisted therapy. The grant program is entitled Healing Art and Touch (Umenie a dotyk lieči). Art Therapy is used mainly for healing of the mentally ill, it supports the self-healing processes and development of basic skills. The art helps the patients to overcome barriers, improve communication, self-realization and at the same time it offers an aesthetic experience and joy of creating. Animal-assisted therapy counts among recognized therapeutic procedures, whereas it most popular forms include canistherapy and hippotherapy. Canistherapy is most frequently used in healing of autistic children and hippotherapy has positive effects on the health condition of patients after children’s cerebral palsy, with Down syndrome and various motion apparatus disorders. In 2016, the grant program recorded 131 enrolled projects and VUB Foundation provided grants to 25 organizations in the total amount of EUR 33,878. The starting package for people with a challenging destiny was run by VUB Foundation in cooperation with the WellGiving civic association. Each year, the Foundation gets tens of requests for help from people, whose life stories are marked with a grave disease, disability, pain or a lack of funds for living. In the effort of helping these people, we created a partnership with the dakujeme.sk portal. The help was provided to applicants in a non-traditional form – “starting package“ for families with ill children. This did not involve the donation of big financial amounts, but help in starting up their own fundraising. Exceptionality of this help consists precisely in the fact that the donation in the amount of EUR 200 is motivational, encouraging the applicants and giving them strength to keep fighting and raise the missing funds and thus to actively solve the challenging situation they found themselves in. The starting package encouraged the visitors of the donation portal not to stay indifferent and they donated as well because the interest of VUB Foundation is a signal for the public and potential donors that there are people who really need help. In 2016, 20 children received the starting package and as a result the families managed to get additional EUR 33,267 from individual donors.
For Community Foundation Program
In 2016, VUB Foundation again announced the Community Grants program. Big interest of people in the environment they live in confirmed again that community projects needed support. In order to execute these projects participation of activists and volunteers who are willing to dedicate their time, experience and expertise, knowhow or effort for the good of others is inevitable. The topic of this year’s community projects was to improve life on the local level or build a nice environment by means of civic initiatives, whereas for the first time the program was open also to organizations with projects from the field of start-up community business. In overall, 222 community projects were submitted, thereof 209 applications were related to development of communities and 13 applications to community business. In the first round of evaluation, the committee assessed the submitted projects and selected the top 6 from each of the 8 regions of Slovakia and these were included in the public voting. The top 3 projects with the highest number of votes in each region received grants from VUB Foundation in the total amount of EUR 68,470. Two projects selected by the committee received a special Impact HUB award from the Foundation worth EUR 4,000. In total, the Foundation distributed EUR 76,470.
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Annexes
Global Reporting Initiative Indicator Table
PROFILE
GRI
Description
Page
Strategy and Analysis G4-1
Statement from the most senior decision maker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy.
4V
G4-2
Description of key impacts, risks and opportunities.
4 V, 13 V, 23 V, 32 V
Organisation Profile
106
G4-3
Name of the organization.
114 V
G4-4
Primary brands, products, and/or services. The reporting organization should indicate the nature of its role in providing these products and services, and the degree to which it utilizes outsourcing.
11 V, 12 V, 14 V
G4-5
Location of organization’s headquarters.
114 V
G4-6
Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.
11 V
G4-7
Nature of ownership and legal form.
73 V, 74 V
G4-8
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
13 – 14 V
G4-9
Scale of the reporting organization, including: • Number of employees • Number of operations • Net sales (for private sector organizations) or net revenues (for public sector organizations); • Total capitalization broken down in terms of debt and equity (for private sector organizations); and • Quantity of products or services provided
11 V, 12 V, 14 V
G4-10
a. Report the total number of employees by employment contract and gender. b. Report the total number of permanent employees by employment type and gender. c. Report the total workforce by employees and supervised workers and by gender. d. Report the total workforce by region and gender. e. Report whether a substantial portion of the organization’s work is performed by workers who are legally recognized as self-employed, or by individuals other than employees or supervised workers, including employees and supervised employees of contractors. f. Report any significant variations in employment numbers (such as seasonal variations in employment in the tourism or agricultural industries).
61 – 64 V
G4-11
Report the percentage of total employees covered by collective bargaining agreements.
70 V
G4-12
Describe the organization’s supply chain.
78 – 82 V
G4-13
Report any significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain.
12 V, 16 V, 73 V
G4-14
Report whether and how the precautionary approach or principle is addressed by the organization.
34 V
G4-15
List externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.
26 V
G4-16
List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization: • Holds a position on the governance body; • Participates in projects or committees; • Provides substantive funding beyond routine membership dues • Views membership as strategic.
16 V
Annexes
GRI
Description
Page
Identified Material Aspects and Boundaries G4-17
a. List all entities included in the organization’s consolidated financial statements or equivalent documents. b. Report whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report
a – 15 V, b – 28 V
G4-18
a. Explain the process for defining the report content and the Aspect Boundaries. b. Explain how the organization has implemented the Reporting Principles for Defining Report Content.
a – 31 V, b – 32 V, 33 V
G4-19
List all the material Aspects identified in the process for defining report content.
Included within chapters
G4-20
For each material Aspect, report the Aspect Boundary within the organization, as follows: a. Report whether the Aspect is material within the organization If the Aspect is not material for all entities within the organization (as described in G4-17), select one of the following two approaches and report either: The list of entities or groups of entities included in G4-17 for which the Aspect is not material or: – The list of entities or groups of entities included in G4-17 for which the Aspects is material. – Report any specific limitation regarding the Aspect Boundary within the organization.
Included within chapters
G4-21
For each material Aspect, report the Aspect Boundary outside the organization, as follows: • Report whether the Aspect is material outside of the organization. • If the Aspect is material outside of the organization, identify the entities, groups of entities or elements for which the Aspect is material. In addition, describe the geographical location where the Aspect is material for the entities identified. • Report any specific limitation regarding the Aspect Boundary outside the organization.
Included within chapters
G4-22
Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements..
n/a
G4-23
Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.
n/a
Stakeholder Engagement G4-24
A list of stakeholder groups engaged by the organization.
30 V
G4-25
Report the basis for identification and selection of stakeholders with whom to engage.
29 V, 30 V
G4-26
Report the organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.
31 V, 48 V, 69 V, 71 V
G4-27
Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.
32 V, 33 V
Report Profile G4-28
Reporting period (such as fiscal or calendar year) for information provided.
5V
G4-29
Date of most recent previous report (if any).
5V
G4-30
Reporting cycle (such as annual, biennial).
5V
G4-31
Provide the contact point for questions regarding the report or its contents.
5V
G4-32
a. Report the ‘in accordance’ option the organization has chosen. b. Report the GRI Content Index for the chosen option (see tables below). c. Report the reference to the External Assurance Report, if the report has been externally assured.
a – 5 V, 29 V b – 106 V c – 113 V
G4-33
a. Report the organization’s policy and current practice with regard to seeking external assurance for the report. b. If not included in the assurance report accompanying the sustainability report, report the scope and basis of any external assurance provided. c. Report the relationship between the organization and the assurance providers. d. Report whether the highest governance body or senior executives are involved in seeking assurance for the organization’s sustainability report.
29 V
G4-34
The governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.
18 – 21 V
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Annexes
GRI
Description
Page
Governance G4-35
Report the process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees.
27 V
G4-36
Report whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body.
27 V
G4-38
Report the composition of the highest governance body and its committees by: – Executive or non-executive – Independence – Tenure on the governance body – Number of each individual’s other significant positions and commitments, and the nature of the commitments – Gender – Membership of under-represented social groups – Competences relating to economic, environmental and social impacts – Stakeholder representation
18 – 21 V
G4-39
Report whether the Chair of the highest governance body is also an executive officer (and, if so, his or her function within the organization’s management and the reasons for this arrangement).
19 V
G4-40
Report the nomination and selection processes for the highest governance body and its committees, and the criteria used for nominating and selecting highest governance body members, including: • Whether and how diversity is considered • Whether and how independence is considered • Whether and how expertise and experience relating to economic, environmental and social topics are considered • Whether and how stakeholders (including shareholders) are involved
G4-41
Report processes for the highest governance body to ensure conflicts of interest are avoided and managed. Report whether conflicts of interest are disclosed to stakeholders, including, as a minimum: • Cross-board membership • Cross-shareholding with suppliers and other stakeholders • Existence of controlling shareholder • Related party disclosures
22 V
G4-42
Report the highest governance body’s and senior executives’ roles in the development, approval, and updating of the organization’s purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts.
27 V
G4-52
Report the process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management. Report any other relationships which the remuneration consultants have with the organization.
20 V
G4-53
Report how stakeholders’ views are sought and taken into account regarding remuneration, including the results of votes on remuneration policies and proposals, if applicable.
20 V
21 V
Ethics and Integrity
108
G4-56
Describe the organization’s values, principles, standards and norms of behaviour such as codes of conduct and codes of ethics.
34 – 40 V
G4-57
Report the internal and external mechanisms for seeking advice on ethical and lawful behaviour, and matters related to organizational integrity, such as helplines or advice lines.
35 V
G4-58
Report the internal and external mechanisms for reporting concerns about unethical or unlawful behaviour, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.
35 V
Annexes
MANAGEMENT APPROACH
Strana Economic Economic Performance Market Presence
11 V, 78 – 82 V
Procurement Practices Environmental Materials Energy Water Biodiversity
83 – 97 V
Effluents and Waste Products and Services Overall Supplier Environmental Assessment Product portfolio Social Labour Practices and Decent Work Employment Labour/Management Relations Occupational Health and Safety
59 – 72 V
Training and Education Diversity and Equal Opportunity Human Rights Non-discrimination Freedom of Association and Collective Bargaining Child Labour
39 V,69 – 71 V, 80 – 82 V
Forced or Compulsory Labour Supplier Human Rights Assessment Society Anti-corruption Supplier Assessment for Impacts on Society
39 V,40 V, 78 – 82 V
Product Responsibility Customer Health and Safety Product and Service Labelling Customer Privacy
46 V, 53 V
Compliance Local communitiesv
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PERFORMANCE INDICATORS
GRI
Economic
Page
Economic Performance G4-EC1
Direct economic value generated and distributed.
11 V,14 V, 98 – 103 V
Market Presence G4-EC6
Proportion of senior management hired from the local community at significant locations of operation.
63 V
Procurement Practices G4-EC9
Proportion of spending on local suppliers at significant locations of operation.
81 V
GRI
Environmental
Page
G4-EN1
Materials used by weight or volume.
85 V
G4-EN2
Percentage of materials used that are recycled input materials.
86 V
G4-EN3
Energy consumption within the organization.
87 V
G4-EN4
Energy consumption outside of the organization.
87 V
G4-EN6
Reduction of energy consumption.
87 V
Total water withdrawal by source.
89 V
Materials
Energy
Water G4-EN8
Emissiones G4-EN15 Direct greenhouse gas (ghg) emissions
88 V
Effluents and Waste G4-EN23 Total weight of waste by type and disposal method. G4-EN25
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the basel convention 2 annex i, ii, iii, and viii, and percentage of transported waste shipped internationally.
89 V, 90 V 90 V
Products and Services G4-EN27 Extent of impact mitigation of environmental impacts of products and services.
88 V, 92 – 96 V
Overall G4-EN31 Total environmental protection expenditures and investments by type.
85 V
Supplier environmental assessment G4-EN32 Percentage of new suppliers that were screened using environmental criteria.
82 V
G4-EN33 Significant actual and potential negative environmental impacts in the supply chain and actions taken.
82 V
Product portfolio G4-FS8
110
Financial value of products and services proposed to bring environmental benefit for particular business lines by purpose.
93 V, 94 V
Annexes
GRI
Social labor practices and decent work
Page
Employment G4-LA1
Total number and rates of new employee hires and employee turnover by age group, gender and region.
63 V, 64 V
G4-LA2
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation.
66 V
Labour/management relations G4-LA4
Minimum notice periods regarding operational changes, including whether these are specified in collective agreements.
71 V
Occupational Health and Safety G4-LA5
Percentage of total workforce represented in formal joint management – worker health and safety committees that help monitor and advise on occupational health and safety programs.
70 V
G4-LA6
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender
70 V
G4-LA7
Workers with high incidence or high risk of diseases related to their occupation.
70 V
G4-LA8
Health and safety topics covered in formal agreements with trade unions.
70 V
Training and Education G4-LA9
Average hours of training per year per employee by gender, and by employee category.
67 – 69 V
G4-LA10
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
65 V
G4-LA11
Percentage of employees receiving regular performance and career development reviews, by gender and by employee category.
66 V
Diversity and Equal Opportunity G4-LA12
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.
61 – 64 V
GRI
Social human rights
Page
Non-discrimination G4-HR3
Total number of incidents of discrimination and corrective actions taken.
69 V
Freedom of Association and Collective Bargaining G4-HR4
Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and measures taken to support these rights.
82 V
Child labour G4-HR5
Operations and suppliers identified as having significant risk for incidents of child labour, and measures taken to contribute to the effective abolition of child labour.
82 V
Forced or Compulsory Labour G4-HR6
Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor.
82 V
Supplier human rights assessment G4-HR10 Percentage of new suppliers that were screened using human rights criteria.
82 V
G4-HR11 Significant actual and potential negative human rights impacts in the supply chain and actions taken.
82 V
111
Annexes
GRI
Society
Page
Protikorupčné opatrenia G4-SO3
Total number and percentage of operations assessed for risks related to corruption and the significant risks identified
38 V, 39 V
G4-SO4
Communication and training on anti-corruption policies and procedures.
38 V, 39 V
Supplier Assessment for Impacts on Society G4-SO9
Percentage of new suppliers that were screened using criteria for impacts on society.
80 V
G4-SO10 Significant actual and potential negative impacts on society in the supply chain and actions taken.
80 V
GRI
Page
Product responsibility
Customer Health and Safety G4-PR1
Percentage of significant product and service categories for which health and safety impacts are assessed for improvement.
46 V
Product and Service Labelling G4-PR5
Results of surveys measuring customer satisfaction.
47 V, 48 V
Compliance G4-PR9
Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.
79 V
Local communities
112
G4-FS13
Service access points in the low population density areas or in financially disadvantaged areas.
16 V
G4-FS14
Initiatives to improve access of disadvantaged groups to financial services.
53 V, 54 V
Statement on the 2016 Corporate Responsibility Report of Všeobecná úverová banka, a.s.
Všeobecná úverová banka, a.s. (VÚB bank) publishes its 10th report on corporate responsibility prepared according to the Global Reporting Initiative Sustainability Reporting Guidelines (GRI G4 Guidelines). Pontis Foundation was in charge of providing an assurance on the usage of the guidelines. The report was prepared solely by the VÚB bank and the VÚB bank is fully responsible for the accuracy of the data provided in this report. According to our best knowledge, the report fulfills all the conditions of the “in accordance” level “core”. The report contains all the necessary disclosures on general and specific information required by the guidelines. A report prepared using these guidelines is easily comparable with reports from previous years and also across the sector. The report shows changes (positive and negative) in the performance of the company and its impact in all measured areas. The report is written in an appropriate language and can be easily understood by every stakeholder. We appreciate that VÚB bank used the newest version of the guidelines to prepare the report and also used the sector supplement for companies providing financial services. We also highly appreciate a precise selection of relevant topics into the report based on the materiality matrix. VÚB bank is an excellent example in the area of reporting for both the banking sector and for all the companies in Slovakia. For the following reporting periods, we recommend preparing an interactive version of the report on the company web page or on a specialized web page dedicated to communication of CSR activities of the company.
Bratislava, June 26, 2017
Michal Kišša Reviewer Program Director for CSR Pontis Foundation
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Issued by:
Všeobecná úverová banka, a.s. Mlynské nivy 1 829 90 Bratislava Slovenská republika E-mail:
[email protected] V www.vub.sk V
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External Verifier:
Nadácia Pontis, Bratislava
Layout:
Istropolitana Ogilvy
