Miro Bank

ProCredit – an international network of financial institutions serving small business MIRO Bank is part of a large network of target group-oriented financial institutions which currently has 18 members in Eastern Europe, Latin America and Africa. These institutions focus on providing financial services to enterprises ranging from the very small to the medium-sized, thereby helping to close a major gap in the market. Over the years, we have jointly developed a profound understanding of both the problems faced by these small businesses and the opportunities available to them, and we have tailored our credit technology to reflect the realities of their operating environment. As the figures demonstrate, our approach has been a resounding success: As of December 31, 2003 the network had grown to over 200 branches and 4,600 employees, and the combined total assets of the network institutions exceeded EUR 1.0 billion. The loan portfolio amounted to some EUR 600 million and was distributed among roughly 300,000 customers, which translates into an average loan size of around EUR 2,000. And only 1% of the overall credit volume outstanding at the end of 2003 was more than 30 days overdue. This proves that it is precisely the small borrowers we serve who are the most reliable customers.

Based on our initial success and the phasing of operational focus at country level, our planning envisages significant network expansion. By the end of our five-year planning horizon, we expect the network to have a presence in 25 countries, with 450 branches, 10,000 employees and a loan portfolio of EUR 2.5 billion. Growth on such a scale can only be financed if, in addition to maintaining successful lending operations, we also succeed in deepening the trust of our depositors. As of the end of 2003 the network reported a total deposit volume of around EUR 550 million, and we are confident of being able to raise this figure to around EUR 2.0 billion by the end of 2008. If you would like to know more about the network of financial institutions which all share, or will soon share, the name “ProCredit”, please visit the IMI website: www.imi-ag.com