Page 16 - Annual Report 2023

16 BANKA KOMBËTARE TREGTARE

MESSAGE FROM

THE CHIEF EXECUTIVE OFFICER

Dear Stakeholders,

Benefiting from the structure of our balance sheet, which is well-capitalized and liquid, we closed 2023
with very high profitability: 26 per cent return on US$ equity. The comprehensive income for the year
is a record US$118 million, which will allow us to proceed with the planned US$50 million dividend
pay-out in 2024, the same as in 2023. It also allows us to strengthen further our equity base, which
we need as the largest systemically important bank in the country. To that end, we issued Euro30
million MREL bond, the first and largest of its kind in Albania. Although it costs us by way of reduced
leverage and increased cost of capital, we are proud to be the leading systemically important bank.

Among the many achievements of the year, I want to emphasize our journey towards more digitalization.
Our banking app, BKT-smart, is the most comprehensive solution in the market, as evidenced by the
exponential growth in its active users, as well as Euromoney’s “digital leader” designation. Similarly,
our fully owned subsidiary BKT-Pay has launched its e-money platform: e-para, which marks a
milestone in the country.

As the world goes more digital, unfortunately, the risk and potential damage of cyber attacks is also
increasing, of which Albania has had its fair share in 2023. Thanks to our strong defenses, we have
not been impacted, unlike some of our competitors. We remain vigilant also for other risks: The fight
against inflation is yet to be won, and the longer the policy rates remain high, the higher the chances
that a financial crisis will erupt, as the one narrowly avoided in March 2023. Geopolitical and climate
risks continue to be relevant with the wars in Europe and the Middle East continuing. It was very
telling that at some point in the year both the Suez and Panama Canals were closed, the former due
to terrorist attacks on ships, the latter due to the low water levels caused by global warming. Again,
our balance sheet is our moat and the readiness is all.

We have fully renovated and restorated our historical branch building in Durres, dating back to almost
a century. It is one of the most beautiful buildings in the country and we are proud to return it to its
original glory. As we head for our centenary in 2025, we will be renovating our other historical branches
in Korça, Vlora and Elbasan.

Our subsidiary in Kosovo, BKT-Kosovo, continues to grow profitably. It is now the third largest bank
by assets and one of the most profitable. It makes our brand truly Albanian, and us proud.

As always, we have challenging targets for 2024, first and foremost the return on US$ equity of 19 per
cent. We are also changing branch workflows, moving the customers in the center. We want to grow
more aggressively in loans. Again, our dedicated and quality staff, supported by the Board of Directors
and a strong balance sheet, give us the peace of mind that this year, too, will be one of success.

Kind regards,

Seyhan Pencablıgil
Chief Executive Officer and Board Member