Annual Report

O
7
Annual Report
The Board of Managing Directors of Raiffeisen Bausparkasse
presents the Annual Report 2007.
Vienna, June 2008
Bausparen is safe and secure
2007 started out on a brilliant note and all the experts
ure is expected to stop a further
assumed that the stable economic growth would continue
threatening
at a high level until the end of the year. Although the U.S.
has a curbing effect on the Bau-
subprime crisis had initially not seemed significant for
sparkassen’s
Europe or Asia, its first effects began to become evident by
and thus, in the long run, on resi-
the summer. In late autumn the upsurge of prices in a large
dential housing. Due to the high
number of raw materials accelerated the downturn in
demand for low-interest Bauspar
America’s economy. Apart from that, there were several
loans, a rapid meltdown of the
increases in charges in Austria, which had an impact on
deposit overhang is taking place
operating costs, particularly where electricity and water
and has reduced the difference
rates were concerned. This, in turn, had a dampening effect
between Bauspar deposits and
on real income and consumer demand. It is expected that
loans. From a macroeconomic
the credit crisis will continue to leave its marks on the glob-
point of view, the extraordinary
al economy throughout 2008.
financing requirements for quality
development
financing
that
power
improvement in housing stock –
The recent turmoil on the financial markets quite plainly
these maintain the demand for
shows us something else too: the high level of safety and
goods and labor – should be sup-
security of the domestic Bauspar system. The independent
ported and not prevented.
savings and financing cycle as well as the ceiling of six percent for Bauspar loans help to make Austrians immune to
The attractive conditions for sav-
the repercussions of such phenomena as the sub-prime
ings along with the moderate
crisis. A carefully considered pricing policy, strict funding
interest adjustments for borrow-
requirements and a cautious credit process protect both
ers have made Bausparen an
borrowers and the building societies (Bausparkassen).
even more desirable financial
service product. Newly intro-
In times of turbulent market conditions, many customers
duced and very successful in
(savers and borrowers) bank on reliability. As a result,
2007 was the so-called “Relax
Raiffeisen Bausparkasse achieved record results in new
Tarif” with a fixed interest rate for
business and thus again managed to exceed the excellent
the 6 year saving period. Another
figures of 2006.
factor that contributed to the
good start of the year 2008 was
Growing needs of new housing space and the federal gov-
the rise in the Bauspar premium
ernment’s climate protection initiatives require intensified
and
financing efforts in residential housing. To remain equipped
means a hefty increase in the
to deal with robust demand, Raiffeisen Bausparkasse is
rate of return on savings con-
calling for a swift increase in the basis for the Bauspar pre-
tracts.
mium from € 1,000 to € 1,200. At the same time, this meas-
2
in
interest
rates,
which
Erich Rainbacher
Chairman and Managing Director
Johann Ertl
Managing Director
New business achieved record high,
financing in full flow
The expansion in construction investments made a substantial contribution towards economic growth. The first half-year
saw a 3.2 per-cent increase compared to the previous year.
Particularly in the area of civil engineering, demand was very
brisk, which had a favorable effect on production and
employment. Nevertheless, high energy and raw material
costs forced up prices. According to Statistics Austria,
tradesmen jobs in residential housing construction rose by
up to 11 % (e.g. roofing jobs). Besides the sharp increase in
material costs that marked the start of a downturn in the
domestic economy, the export-oriented economy started to
suffer from the widening euro-dollar gap towards the end of
the second half-year. In the course of the subprime credit
crisis, the turbulences on the financial services sector had
wider and wider repercussions, also shaking the confidence
of the customers of major and renowned banking institutions.
In the previous year, it once again became evident that the
domestic Bausparkassen offered reliability even in volatile
times. With 308,394 new Bauspar contracts in 2007,
Raiffeisen Bausparkasse achieved the best results in its corporate history (+ 11.9 % compared with 2006). This helped
them to expand their market share (32.7 %) in this segment
308,394
considerably.
275,703
350,000
287,882
Number of
new contracts
The upward trend continued in the volume of newly granted
loans for residential housing. With € 1.14 billion and a market share of 32.4 %, the exceptional year 2006 was once
again exceeded by 8.3 %. The high popularity of Bausparen
is also reflected in the fact that the financing volume has
doubled in the course of five years. This was accompanied
300,000
by a noticeable expansion of loans by 6.5 % compared with
the previous year. By the end of 2007, no less than € 5.4 bil-
250,000
lion worth of loans were outstanding, which is the equivalent
of a market share of 34.3 %.
200,000
Bauspar loans offer especially attractive financing conditions
150,000
that are secured over the long term, which makes them calculable. The ceiling of the interest rate of 6 % prevents borrowers from having to face intolerable installment increases.
100,000
Every Bauspar contract constitutes the basic entitlement to
a low-interest, long-term loan. But market research surveys
50,000
regularly confirm that Bausparen is also regarded as an
attractive form of saving – with handsome rates of return,
0
2005
2006
2007
high security and versatile saving options. 5.5 million
4
Austrians have Bauspar contracts either in the savings
phase or in the loan phase of which one in three commits
their money to Raiffeisen Bausparkasse. With 1,658,831
savings contracts (market share 32.7 %) and 168,484 loan
accounts (market share 37.2 %) Raiffeisen Bausparkasse yet
again asserted its position as undisputed market leader in
2007.
The financing demand is expected to be strong in 2008. As
Base value for the state
a result, the volume of loans will continue to rise, and in the
premium to be increased
foreseeable future it will equal that of deposits. In this context, the Bausparkassen are demanding a rise in the base
value for government subsidies from currently € 1,000 (as it
has been over the last nine years) to € 1,200 per person and
year to compensate for inflation. The deposits overhang of
the Bausparkassen that was generated from 2001 to 2005
shrank over the last years at an increasing pace, specifically
from € 4.0 billion to € 1.65 billion. At Raiffeisen Bausparkasse, the deposits overhang at the end of 2007 was no
more than € 167 million. If the loan-deposit gap continues to
close, the liquidity of the Bausparkassen will rapidly decline.
This would entail a slowing of the residential housing boom,
since the Bausparkassen are a major financial drive of
private housing construction.
At the end of 2007, the Bauspar deposit volume exceeded
€ 5.5 billion. Here too, Raiffeisen takes the leading position
with a market share of 32 %.
Favorable conditions and innovative products fueled
Attractive product features
demand considerably. Despite the rising interest level, the
stimulated demand
interim loan interest rate was at moderate 3.2 % at the end
of 2007. In the savings sector, the attractive conditions of the
Saving Rate (Spartarif) and Youth Rate (Jugendtarif) for
new contracts were extended. Customers who become
Bausparers before their 25th birthday enjoy an interest rate
of 4.5 % p.a. in the first year. Including the state-premium this
is the equivalent to a savings book interest rate of 6.2 %.
Additionally, if customers take up a loan before their 30th
birthday, the first installment is credited to their account. In
the case of the Saving Rate (Spartarif) the yield is comparable to a savings book interest rate of 5.7 %.
The new Relax Tarif, especially designed for one-time payers, offers a guaranteed interest yield over the entire term.
Added to that is the state premium which, depending on the
5
New: The Relax product
interest development, may amount to up to 8 % of annual
savings. The introduction of the Relax product is an important step towards strengthening liquidity in view of the drastically increased demand for Bauspar financing.
The hugely increased energy costs make investments in
Top topic energy efficiency
quality improvements to existing residential housing more
and more financially rewarding. Accordingly, over the last ten
years, the loan grants for redevelopment and renovation trebled at Raiffeisen Bausparkasse. This trend is set to continue, as people are becoming more and more willing to install
thermal insulation.
Exactly how important energy saving is to people was also
shown in a large-scale market research survey on the
Austrians’ “dream house” which Raiffeisen Bausparkasse
carried out in the summer of 2007. When asked the question
“How important is minimum energy consumption in your
home?” 96 % answered “very important” or “important”
while only 0.5 % of those questioned considered low energy
consumption as irrelevant.
Financing volume
for residential housing
Loans
in € m
1,000
5,000
800
4,000
600
3,000
400
2,000
200
1,000
0
5,350
6,000
5,025
1,200
4,854
1,139
1,053
1,020
in € m
2005
2006
2007
0
2005
2006
2007
6
In February 2008, Raiffeisen Bausparkasse launched a so-
Prima-Klima Bauspar financing
called Eco-Loan campaign: It offered Prima-Klima Bauspar
financing at an interest rate reduced by as much as 10 % for
certain energy saving measures, providing an overall loan
volume of € 100 million. The Eco-Loan campaign was
intended not only for energy-saving new constructions, but
also for improvement measures taken in existing buildings.
The rising interest rate level and a proactive pricing policy
Outlook 2008
have given a new boost to the popularity of Bausparen.
According to the latest survey conducted by GfK Group, one
in two Austrians gives this form of investment top grades.
Bausparen is not only regarded as an attractive and secure
financial investment form, but is also a highly sought after
financing instrument. Whether you wish to make your home
dream come true or finance education or care measures, for
long-term decisions, you need a solid foundation that withstands all turbulent times, whether past or future.
Balance sheet total
6,162
6,211
6,238
in € m
2005
2006
2007
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
7
Equity interests of Raiffeisen Bausparkasse
Know-how provider in the CEE countries
In the countries of Central and Eastern Europe (CEE) the
whole Bauspar idea has turned out to be a real export hit.
For a very long time the Bausparkassen were the only banks
that offered the people of Slovakia, Hungary, the Czech
Republic, Croatia and Romania long-term and stable construction finance, thus stimulating new construction along
with the renovation of existing buildings. The Bauspar systems in these countries and the way public support is organized are based on the Austrian Bauspar model.
Ever since its first commitment in the early nineties, Raiffeisen
Bausparkasse has been continually strengthening its position
in the CEE countries. The takeover of Hypo stavební sporitel-
Successful acquisition of Hypo
na, a.s. (Hypo Bausparkasse, Prague) last year was a further
stavební spořitelna, Prague.
step on the road to the top in the highly competitive Czech
Johann Ertl and Christian Martell
building society market. Bausparen is growing more and
(middle), Raiffeisen Bausparkasse,
more popular in the other Central and Eastern European
with representatives of the former
countries, too. With 363,000 contracts, i.e. a plus of almost
owners.
15 % compared with 2006, the subsidiaries’ new contracts
even outperformed the Austrian parent company’s record figures. The entire contract volume in CEE totaling about two
million Bauspar contracts shows that the population is more
than happy to take advantage of the benefits of Bausparen to
accumulate capital and finance housing.
Adresses
Prvá stavebná sporitel’ňa, a.s.
Bajkalská 30, P.O.Box 48
SK 829 48 Bratislava 25
Tel.: 00421/2/582 31 111
Managing Directors:
Imrich Beres
Herbert Pfeiffer
Erich Feix
Raiffeisen stavební spořitelna, a.s.
Konevova 2747/99
CZ 130 45 Praha 3
Tel.: 00420/2/7103 1111
Managing Directors:
Jan Jenicek
Hans-Dieter Funke
Raiffeisen stambena štedionica d.d.
Radnička cesta 47
HR 10 000 Zagreb
Tel.: 00385/1/6006 100
Managing Directors:
Hans-Christian Vallant
Franjo Franjic
Raiffeisen Banca pentru Locuinţe, S.A.
Nicolae Caramfil Str. 79
RO Bukarest 1
Tel.: 0040/21/203 19 20
Managing Directors:
Ionut Costea
Luminita Manolache
Heribert Kailbach
9
Slovakia
When, in the early nineties, initial thought was given to taking the Bauspar idea into the countries of Central and
Eastern Europe, Raiffeisen Bausparkasse chose Slovakia as
its pioneer country. Meanwhile, Slovakia has become a forerunner in Bauspar matters. Of all the investments so far
made in residential housing by the three Slovak Bausparkassen, the mortgage banks and the state-owned Slovak
residential housing fund, the Bausparkassen provided 56 %
of residential housing funds.
Absolute market
In the year 2007, Prvá stavebná sporitel’ňa a.s. (PSS) once
leadership of PSS
again successfully defended its absolute leading position in
the market. With close to 170,000 new contracts it was able
to exceed last year’s results by 9 %. Deposits rose by 8 % to
SKK 44.1 billion (€ 1.3 billion) while loans rose by 12.6 % to
SKK 45.7 billion (€ 1.4 billion). Due to the fact that there continues to be a high demand for low-interest Bauspar and
interim loans among PSS’s customers, the company issued
its first housing bond in 2007. So alongside Bauspar deposits, a further refinancing source was provided for.
Ever since Slovakia’s accession to the European Union in
2004, PSS’s ongoing projects have all centered on Europe.
45,673
beginning of 2009 are in full swing. In September 2007, PSS
40,576
The preparations for the introduction of the Euro in the
In SKK m
34,753
Loans
was the first bank in Slovakia to have submitted a monthly
report according to the standard rules of Basle II.
Preparations were also underway to enter the SWIFT system.
50,000
As part of their corporate social responsibility, PSS purchased a plot of land in 2007 upon which 60 to 80 employ-
40,000
ee flats are to be built.
30,000
20,000
10,000
0
2005
2006
2007
10
Czech Republic
Even if the Czech Republic was not the very first country in
Central and Eastern Europe to bear the fruit of the Bauspar
idea, it can still be regarded as one of the “Bauspar winners”
among the CEE countries. Of the 10.3 million Czechs as
many as 55 % have a Bauspar contract, which makes it the
country with the highest Bauspar density to be found
throughout CEE. Bausparen is thus one of the vital pillars of
the state’s residential housing policy and represents the perfect financing instruments for the continuing construction
boom in the Czech Republic.
In 2007 RSTS set
To Raiffeisen stavební spořitelna, a.s. (RSTS) 2007 was a
the course for the future
year of change. In sales the managing board set a strong
example. Compared with 2006, new business was increased by 38.3 % and 109,000 new contracts were signed.
In 2007 the market share of RSTS climbed from 10 % to
13 % – a positive signal for the changes in sales. Bauspar
deposits picked up by 8.2 % amounting to CZK 42.9 billion
(€ 1.6 billion) while there was also a powerful 37.4 % rise in
loans amounting to CZK 16.2 billion (€ 607 million).
For Raiffeisen Bausparkasse, the actual highlight of the year
2007 was the acquisition of one of the competitors in the
16,162
tion and the planned merger of the two companies will set
11,763
Bauspar market, Hypo stavební spořitelna a.s. The acquisi-
In CZK m
9,045
Loans
17,500
the course for the future. After the merger, the market share
of the two Bausparkassen will be at 20 %, and their common
customer base will have extended to 1 million, which will
take Raiffeisen in the Czech Republic from fourth to third
place in the Bauspar ranking.
15,000
12,500
10,000
7,500
5,000
2,500
0
2006
2007
2008
12
Croatia
In the southern Bauspar country of Croatia the Bauspar system established itself towards the end of the nineties. In the
year 2007, the population’s strong consumption orientation
and the, until then, easy access to loans caused the
Croatian national bank to take measures to control the
indebtedness of its population. This will noticeably reduce
credit growth (including that of the Bausparkassen) in 2008.
Loans up 54.4 % –
despite difficult conditions
Given these conditions, it is all the more pleasing to see that
Raiffeisen stambena štedionica d.d. (RSS) was able to
increase its new business by more than 45,000 contracts,
which is the equivalent of 5 % compared with 2006. Existing
contracts thus increased by 3.6 % to 200,000. Loans rose
too, despite the tightened National Bank regulations, from
HRK 646 million (€ 88 million) in the year 2006 to HRK 997
million (€ 136 million), i.e. plus 54.4 % in the year 2007.
The savings business in the year 2007 centered on the keyword “Bubaspara”, a made-up Croatian word that refers to
RSS’s successful savings scheme for children. The advertising campaign featuring a bee that remotely resembles wellknown “Sumsi” of the Raiffeisen Bank Group produced a
brand image that was received very positively by parents
and children alike and was also a huge success with RSS’s
sales partners.
Loans
337
646
997
In HRK m
2005
2006
2007
1,000
750
500
250
0
14
Romania
In the year 2007, Raiffeisen Bausparkasse’s youngest Bauspar country experienced its first year as a member of the
EU. Known to be extremely consumption-oriented before
entering the EU, the rising incomes that resulted from the
high foreign investments in the course of the accession led
to even higher spending. Given the fact that most
Romanians are not yet ready to tie up their savings for more
than one year, the achieved figures might be below plan, yet
they are definitely satisfactory.
Loans broke the
In 2006, Raiffeisen Banca pentru Locuinţe (RBL) generated
34-million-RON
new business totaling almost 39,000 savings contracts,
(9.4-million-EUR) ceiling
causing the existing overall volume to exceed 108,000 contracts (+ 7 %). So thanks to a product based on continuity
and a long-term perspective, RBL was able to achieve
remarkable results in its third full fiscal year. Following the
year 2006 which saw loans at RON 5.0 million (€ 1 million) at
the end of the year, RBL exceeded the RON-34-million mark
(EUR 9.4 million) in fiscal 2007.
Loans
5
34
In RON m
2006
2007
40
30
20
10
0
16
Consolidated Balance Sheet
at December 31, 2007
Assets
EUR
1. Cash on hand, balances with
central banks
2. Treasury bills eligible for
refinancing with the central bank
treasury bills
3. Claims on credit institutions
a) repayable on demand
25,764,422.35
b) other claims
308,889,009.09
4. Mortgage-backed loans
a) Bauspar-loans
3,547,499,176.18
b) mortgage-backed interim loans
838,617,950.16
c) other mortgage-backed loans
333,190,141.88
5. Other loans
a) Bauspar-loans
119,389,730.75
b) interim loans covered by savings
deposits, less registered deposits
for interim loans
172,174,052.20
c) other loans
585,787,314.77
6. Bonds and other
fixed-interest securities
a) issued by public bodies
70,096,249.51
b) issued by other borrowers (of which:
own issues EUR 0.00;
previous year: T EUR 494)
481,661,966.50
7. Shares and other non-fixed-interest
securities
8. Equity interests
a) in associated companies
valued at equity
81,753,429.92
b) in other companies
96,553.55
9. Shares in group companies
in other group companies
10. Intangible fixed assets
(hereof goodwill under § 254 (3)
Austrian Commercial Code
EUR 0.00; previous year: T EUR 0)
11. Property, plant and equipment (of which:
land and buildings occupied by the credit
institution for its own activities
EUR 14,447,656.20;
previous year: T EUR 14,332)
12. Other assets
13. Prepaid expenses
Off-balance-sheet items
1. Foreign assets
20
Dec. 31, 2007
EUR
Dec. 31, 2006
T EUR
T EUR
32,317,588.89
30,348
857,087,034.58
861,317
334,653,431.44
27,318
172,722
200,040
4,719,307,268.22
3,368,066
722,874
285,984
4,376,924
119,062
877,351,097.72
103,776
490,190
713,028
182,495
551,758,216.01
657,626
456,921,560.62
81,849,983.47
840,121
757,706
82,626
76
82,702
108,080.75
108
5,243,383.10
5,748
17,893,438.44
121,202,274.17
35,162,946.71
8,090,856,304.12
17,938
114,847
13,018
8,013,845
1,888,109,423.92
1,747,383
Liabilities and Stockholders’ Equity
EUR
1. Liabilities to credit institutions
a) repayable on demand
b) with agreed terms to maturity or
periods of notice
2. Liabilities to customers
Bauspar-deposits less
registered deposits for interim loans
3. Other liabilities
4. Deferred income
5. Accruals
a) accruals for pensions
b) accruals for severance payments
c) accruals for taxes
d) other accruals
6. Net income after minorities
7. Supplementary capital
8. Subscribed capital
9. Additional paid-in capital
a) appropriated
b) unappropriated
10. Retained earnings
a) statutory reserve
b) reserve under bylaws
c) other reserves
d) exchange differences
e) goodwill due to consolidation
of investments
f) negative goodwill due
to consolidation of investments
11. Minority interests
12. Liability reserve under § 23 (6)
Austrian Banking Act
13. Untaxed reserves
valuation reserve due to
special depreciation
Dec. 31, 2007
EUR
Dec. 31, 2006
T EUR
T EUR
0.00
338,360,550.95
28,006
338,360,550.95
181,497
7,151,405,169.36
52,295,500.35
36,745,675.69
6,284,400.00
7,902,000.00
883,603.66
37,177,301.64
62,245.08
8,029,584.92
7,242,376
51,398
15,139
6,187
7,838
3,635
38,296
52,247,305.30
8,382,750.25
167,000,000.00
35,000,000.00
62
8,030
8,091,830.00
6,976,600.00
10,523,400.00
108,954,652.50
23,399,291.54
Off-balance-sheet items
1. Credit risks
2. Foreign liabilities
21
55,956
8,600
168,337
35,000
8,092
6,977
10,523
94,320
20,519
– 2,449,131.43
8,577,382.93
209,503
–
155,982,195.54
15,281,341.68
2,449
8,577
138,467
13,647
69,848,500.00
67,006
215,485.00
324
8,090,856,304.12
8,013,845
421,057,787.64
1,823,002,697.39
316,479
1,691,950
Consolidated Income Statement
for the 2007 financial year
EUR
1. Interest and similar income
of which:
a) income from Bauspar-loans
b) from fixed-interest securities
2. Interest and similar expenses
of which:
for Bauspar-deposits
I. NET INTEREST INCOME
3. Income from securities and equity interests
a) income from non-fixed-interest
securities
b) income from equity interests
in other companies
c) income from shares in group
companies
d) income from equity interests
in associated companies valued
at equity
4. Other operating income
II. OPERATING INCOME
5. General administrative expenses
a) Personnel expenses
aa) wages and salaries
ab) expenses for statutory social
security and payroll-related taxes
and compulsory contributions
ac) fringe benefits
ad) expenses for retirement benefits
ae) adjustments to accrual for pensions
af) expenses for severance payments
accrual and statutory severance
payment fund (BVK)
b) Other administrative expenses
(operating expenditure)
6. Depreciation of assets
under items 10 and 11
7. Other operating expenses
III. OPERATING EXPENSES
IV. OPERATING RESULT (= carry forward)
2007
EUR
362,267,221.56
2006
T EUR
301,724
– 270,919,606.16
148,982
57,490
– 245,589
91,347,615.40
31,863,150.32
195,658
56,135
37,290
185,895,715.74
55,784,907.12
194,600,269.00
24,826,247.75
28,500
281.34
0
199,746.34
250
6,836,874.89
56,088,413.90
179,299,179.62
– 128,201,133.08
22,722,724.83
21,231
6,729,993.66
464,894.13
1,237,621.75
97,500.00
6,393
519
1,288
170
508,554.78
31,761,289.15
–
96,439,843.93
991
28,610
80,653
– 3,109,079.90
– 3,781,896.49
– 135,092,109.47
44,207,070.15
22
8,540
69,390
162,815
– 109,263
– 4,610
– 14,955
– 128,828
33,987
IV. OPERATING RESULT (= carry forward)
8. Balance of expenses and income from the disposal and
revaluation of claims and securities and allocations
to accruals for credit risks
9. Balance of expenses and income from writedowns
of securities valued as financial assets
V. RESULT FROM ORDINARY ACTIVITIES
10. Taxes on income
11. Other taxes not included in item 10
VI. ANNUAL NET INCOME
12. Minority interests in profit
13. Exchange differences
14. Movement of reserves
15. Consolidated profit carried forward
VII. NET INCOME AFTER MINORITIES
2007
EUR
44,207,070.15
– 12,094,226.43
–
400,976.64
32,513,820.36
– 5,837,284.29
–
146,439.26
26,530,096.81
– 1,438,495.81
308,476.47
– 18,616,963.60
1,599,636.38
8,382,750.25
–
The Board of Managing Directors
Erich Rainbacher
Chairman & Managing Director
Johann Ertl
Managing Director
23
2006
T EUR
33,987
4,849
14
29,124
– 4,851
–
161
24,112
– 1,443
134
– 16,444
2,241
8,600
Notes to the consolidated financial statements
Consolidated group
The consolidated group at December 31, 2007 comprises credit institutions, financial
institutions and other companies.
In addition to Raiffeisen Bausparkasse Gesellschaft m.b.H., Vienna, the following companies
are fully consolidated:
Raiffeisen stavební spořitelna, a.s., Prague
(Raiffeisen Bausparkasse AG, Prague)
Konevova s.r.o., Prague
(Konevova Ges.m.b.H., Prague)
Raiffeisen stambena štedionica d.d. Zagreb
(Raiffeisen Bausparkasse AG, Zagreb)
Raiffeisen Bausparkassen Holding GmbH, Vienna
The following companies are consolidated using the equity method in accordance with § 264
(1) 2 of the Austrian Commercial Code (UGB):
Prvá stavebná sporitel’ňa, a.s., Bratislava
(Erste Bausparkasse AG, Bratislava)
Raiffeisen Banca pentru Locuinţe, S.A., Bucharest
(Raiffeisen Bausparkasse AG, Bucharest)
Raiffeisen Wohnbaubank AG, Vienna
Raiffeisen Wohnbauleasing Ges.m.b.H, Vienna
Four companies were not included in the consolidated financial statements in accordance
with § 249 (2) UGB, as these companies are deemed not to be of material importance in
presenting fairly in all material respects the company’s net worth, financial and earnings
position. These companies are:
RBM Wohnbau Ges.m.b.H., Vienna
RGS Wohnbau Ges.m.b.H., Vienna
Raffeisen financni poradenstvi s.r.o, Prague
(Raiffeisen Finanzberatungsges.m.b.H., Prague)
Dobre Byvanie s.r.o., Bratislava
Principles of consolidation
The balance sheet date for the financial statements of fully consolidated companies is
December 31, 2007. The latest available financial statements are taken for associated
companies consolidated in accordance with the equity method.
The book value was used in accordance with § 254 (1) 1 and § 264 (1) 1 UGB for consolidation
of investments and consolidation at equity. The book value of the share in each of the
companies included in consolidation is offset against the subsidiary’s equity at an amount
corresponding to the share.
Initial inclusion in the consolidated financial statements was chosen as the accounting date
of initial consolidation. In the 2007 financial year Raiffeisen nekretnine i financijsko savjetovanje d.o.o. Zagreb (Raiffeisen Immobilien- und Finanzberatungsges.m.b.H., Zagreb) was
liquidated and deconsolidated.
24
In accordance with the Austrian Banking Act (BWG), the following balance sheet items
constitute subsidiaries’ equity:
Subscribed capital
Additional paid-in capital
Retained earnings
Accumulated income/loss
Negative goodwill resulting from the consolidation of investments relates to retained
earnings prior to initial consolidation and is shown under reserves from retained earnings.
There is no additional unrealized negative goodwill from the valuation of associated
companies.
The assets, liabilities, accruals and deferrals of the companies included in consolidation are
consolidated using uniform principles of accounting and valuation.
Loans and other claims, accruals and payables relating to transactions between
consolidated companies including accrued and deferred items are offset in the course of
debt consolidation. Intra-group income and expenditure are also offset in the course of
consolidation of income and expenditure.
The financial statements of foreign group companies are adjusted to Austrian accounting
principles.
Individual financial statements denominated in foreign currencies are translated at the
reference rates published by the ECB on the consolidated balance sheet date. Income
statements are translated at the monthly average reference rates for the financial year.
Differences resulting from translating capital are offset against retained earnings without
affecting income. Differences resulting from translating income are recognized and recorded
in the consolidated income statement.
Principles of accounting and valuation
The consolidated financial statements of Raiffeisen Bausparkasse Gesellschaft m.b.H. are
drawn up in accordance with the provisions of §§ 244ff UGB and with § 12 of the Austrian
Bausparkasse Act in compliance with the relevant provisions of the Austrian Banking Act
(BWG).
All consolidated balance sheet items denominated in foreign currencies were translated at
ECB reference rates prevailing on the balance sheet date, income statement items are
translated at monthly average reference rates for the financial year.
Claims on credit institutions are stated at their nominal value plus prorated interest.
Writedowns are made and accruals set up for all identifiable risks associated with loans and
other claims.
Securities held as current assets are valued at the lower of cost or market. Securities held
as long-term investments are recorded under non-current assets and are valued at the
diluted lower of cost or market.
Non-consolidated equity interests are stated at historical cost.
Property, plant and equipment (land, buildings, office furniture and equipment) are stated at
acquisition or production cost less scheduled depreciation. Rates of depreciation range
between 2.0 % and 2.5 % for permanent plant and 10 % to 25 % for movable assets.
Additions in the financial year are depreciated at full or half annual rates depending on
whether the assets are acquired in the first or second half of the year, unless national
regulations specify depreciation pro-rata-temporis.
Liabilities are stated at their nominal amount or at the amount repayable, if higher.
25
Accruals are set up for statutory and contractual severance payment obligations. The
accruals generally amount to 80 % of the claims and are in line with actuarial computations.
The accrual for current pension commitments is set up in accordance with actuarial principles using the current value method and in line with the accounting guidelines of the
Austrian Institute of Actuaries 1999-P, Pagler & Pagler, applying an interest rate of 3.5 %.
There is no shortfall. Future obligations arising from pension commitments are covered by a
pension fund.
Other accruals take into account all identifiable risks and pending liabilities, the amount of
which is not yet known.
Notes to the consolidated balance sheet
The item cash on hand, balances with central banks consists of a cash total of
T EUR 395 (2006: T EUR 421), balances with central banks at T EUR 31,923 (2006:
T EUR 29,927).
The development ot the value of property, plant and equipment in 2007 is illustrated in the
schedule of fixed assets in accordance with § 226 (1) UGB.
I) INTANGIBLE ASSETS
1. Concessions, industrial property rights
and similar rights and benefits as well
as licenses derived therefrom
2. Goodwill
II) PROPERTY, PLANT AND EQUIPMENT
1. Land and buildings including
buildings on non-owned land
2. Office furniture and equipment
III) FINANCIAL ASSETS
1. Shares in group companies
2. Equity interests in associated
companies valued at equity
3. Equity interests in other companies
4. Long-term securities
TOTAL FIXED ASSETS
1)
Acquisition/
production costs
at Jan. 1, 2007
EUR
Exchange
differences
Additions
Disposals
EUR
EUR
EUR
21,865,130
246,848
22,111,978
117,683
0
117,683
1,469,111
0
1,469,111
442,606
0
442,606
17,817,719
11,608,641
29,426,360
565,558
209,802
775,360
178,427
810,812
989,239
9,480
1,056,269
1,065,748
108,081
0
0
0
82,626,008
81,527
887,234,572
970,050,188
0
0
23,759,190
23,759,190
0
20,200
458,607,760
458,627,960
872,578 1)
0
574,379,514
575,252,092
1,021,588,526
24,652,233
461,086,310
576,760,446
Transfer of share in accumulated net income “at equity”
26
Other claims on credit institutions consist of fixed-rate deposits with the following
maturities:
Dec. 31, 2007
Dec. 31, 2006
in T EUR
in T EUR
repayable on demand
82,014
0
up to 3 months
92,040
101,068
3 months to 1 year
16,377
0
1 to 5 years
90,243
71,654
over 5 years
28,215
0
308,889
172,722
In the year 2007 no claims were ceded by way of security (2006: T EUR 55,392).
Listed bonds and other fixed-interest securities do not contain any own issues (2006:
T EUR 494); bonds totalling T EUR 25,635 (2006: T EUR 25,350) will mature in the following
year.
The bonds and other fixed-interest securities include securities with a balance sheet
value of T EUR 4,032 (2006: T EUR 6,942) that are listed on Vienna Stock Exchange. The listed
securities have a difference of T EUR 6 (2006: T EUR 18) between balance sheet value and
higher market value.
Securities with a nominal value of T EUR 0 (2006: T EUR 10,000) recorded under bonds and
other fixed-interest securities were loaned short-term. The transactions of Nov. 6, 2003,
Nov. 10, 2006 and of the year 2007 were closed out in the course of the financial year.
Disposals
final
consolidation
EUR
Acquisition/
production costs
at Dec. 31, 2007
EUR
Cumulative
depreciation
Book value
Book value
352
0
352
Depreciation
2007
EUR
Dec. 31, 2007
EUR
Dec. 31, 2006
EUR
EUR
23,008,966
246,848
23,255,814
17,765,583
246,848
18,012,431
5,243,383
0
5,243,383
5,747,764
0
5,747,764
1,542,423
0
1,542,423
26,310
35,797
62,107
18,525,914
11,537,189
30,063,103
3,730,405
8,439,259
12,169,665
14,795,509
3,097,930
17,893,438
14,557,390
3,380,449
17,937,839
389,197
1,177,460
1,566,657
0
108,081
0
108,081
108,081
0
0
0
0
0
81,753,430
101,727
795,222,009
877,185,247
0
5,173
584,204
589,377
81,753,430
96,554
794,637,805
876,595,869
82,626,008
76,354
885,094,788
967,905,230
0
0
56,919
56,919
62,459
930,504,164
30,771,473
899,732,691
991,590,833
3,165,999
Arithmetic differences may arise when totalling amounts rounded off due to automatic calculation.
27
Securities recorded under financial assets include securities with a book value amounting to
T EUR 61,959 (2006: T EUR 79,491) and a present value amounting to T EUR 55,367 (2006:
T EUR 73,194). As there is no permanent impairment of value, no depreciation was applied.
Securities with a nominal value of T EUR 20,500 (2006: T EUR 37,280) were pledged as
securities for liabilities to other credit institutions.
Shares in investment funds are recorded under shares and other non-fixed-interest
securities.
The real estate value of developed land is T EUR 632 (2006: T EUR 612).
Other assets mainly consist of claims on revenue authorities relating to government
subsidies amounting to T EUR 102,437 (2006: T EUR 96,170).
The option of creating an adjusting item for deferred taxes on the assets side of the balance
sheet is not used. On the balance sheet date the deferred tax assets would amount to
T EUR 3,746 (2006: T EUR 2,794).
Interest rate swaps were concluded by the parent company with a total value of
T EUR 1,468,000 (2006: T EUR 883,000) to hedge the interest rate risk. Interest rate swaps
are denominated entirely in euros and were concluded with Raiffeisen Zentralbank Österreich
AG (RZB), Raiffeisenlandesbank Niederösterreich-Wien AG (RLB NÖ-Wien) and with
Deutsche Bank AG. Both payer (P) and receiver (R) swaps were concluded.
Interest rate swaps were concluded by Raiffeisen stambena štedionica d.d., Zagreb, with
a total value of T EUR 40,000 (2006: T EUR 40,000) to hedge the interest rate risk. Interest
rate swaps are denominated entirely in euros and were only concluded with Raiffeisenbank
Austria d.d. (RBA). Only payer (P) swaps were concluded.
The bonds issued in 2001, 2002, 2004, 2005 and 2007 constitute supplementary capital in
accordance with § 23 (7) BWG or subordinated capital pursuant to § 23 (14) 5 BWG.
Issue
Securities number
Interest rate
Total volume of issue
Issue price
Denomination
Coupon date, annually
Maturity
Redemption at nominal value
(premature redemption not
permitted)
Stock market price at
December 31, 2007
Raiffeisen Wohn Bauspar bonds
2001–2011/1
2002–2012/1
0443536
0443544
6.375 %
5.75 %
EUR 22.0 m
EUR 40.0 m
100.90
100.65
EUR 1,000.00
EUR 100.00
August 21
August 20
10 years
10 years
2004–2014
0443569
5.25 %
EUR 34.5 m
100.35
EUR 100.00
August 17
10 years
Aug. 21, 2011
Aug. 20, 2012*)
Aug. 17, 2014
103.75
101.30
97.40
*) Redemption by issuer possible at August 20, 2009
T EUR 0 (2007: T EUR 36,336) of the bonds issued will mature in 2008.
28
All swaps were valued using internal valuation models, particularly present value models. The
value of an interest rate swap is expressed as the difference between the value of the fixed
obligation and the uncertain variable obligation.
The following swaps exist at Dec. 31, 2007:
P/ R
volume
EUR
Raiffeisen Bausparkasse Gesellschaft m.b.H.
1,468,000,000.00
Raiffeisen stambena štedionica d.d.
40,000,000.00
Total
1,508,000,000.00
maturity
present value
EUR
3 – 21 years
– 565,496.67
5 – 6 years
908,064.12
342,567.45
On the balance sheet date, asset items in foreign currencies amount to T EUR 1,888,109
(2006: T EUR 1,747,383).
Liabilities to credit institutions include refinancing loans for loans with the following
residual maturities:
Dec. 31, 2007
Dec. 31, 2006
in T EUR
in T EUR
repayable on demand
0
28,006
up to 3 months
0
3,634
3 months to 1 year
0
6,060
1 to 5 years
15,501
7,267
over 5 years
322,859
164,536
338,360
209,503
2004–2016
0443551
5.3 %
EUR 5.5 m
99.50
EUR 50,000.00
July 23
12 years
2005–2017
0443577
4.625 %
EUR 30.0 m
99.90
EUR 100.00
March 31
12 years
2007–2018
AT0000A05DB6
5%
EUR 35.0 m
100.60
EUR 100.00
May 23
11 years
Jul. 23, 2016
March 31, 2017
May 23, 2018**)
94.10
89.00
93.25
**) Redemption by issuer possible at May 23, 2015
29
The valuation reserve due to special depreciation under § 12 of the Austrian Income Tax Act
(EStG) developed in 2007 as follows:
Balance at
January 1,
2007
EUR
Office furniture
and equipment
324,512.00
EUR
Adjustment for
scheduled depreciation
EUR
Balance at
December 31,
2007
EUR
0.00
109,027.00
215,485.00
Allocation
Contingent liabilities arising from loan commitments are summarized under credit risks.
The qualifying capital equaled 10.00 % (2006: 9.53 %) of the base as defined in § 22 BWG
and is shown in the following table:
Core capital
Qualifying supplementary capital
Deductions
Qualifying capital
Base
Dec. 31, 2007
in T EUR
Dec. 31, 2006
in T EUR
249,960
167,000
– 108
416,852
212,139
139,267
– 108
351,298
4,168,198
3,685,084
On the balance sheet date, liability items in foreign currencies amount to T EUR 1,823,003
(2006: T EUR 1,691,950).
Other financial liabilities amount to T EUR 4,242 (2006: T EUR 4,397) for the next year and to
T EUR 21,210 (2006: T EUR 21,985) for the following five years. As the contracts were concluded for an indefinite period, the overall liabilities cannot be determined.
Notes to the consolidated income statement
The geographical breakdown of interest and similar income as well as of other operating
income is shown in the following table:
Interest and similar income
Other operating income
Austria
in T EUR
CEE
in T EUR
287,732
28,610
74,535
27,478
Expenditure for supplementary capital and subordinated capital amounts to T EUR 9,626
(2006: T EUR 10,646).
30
Other disclosures
The average number of salaried employees in 2007 is 658.5 (2006: 579).
The composition of the Board of Managing Directors and the Supervisory Board is identical
to that of Raiffeisen Bausparkasse Gesellschaft m.b.H.
The amount of Bauspar-loans granted to Managing Directors and Supervisory Board
members outstanding at December 31, 2007 after annual repayments of T EUR 29 (2006:
T EUR 119) is T EUR 166 (2006: T EUR 189).
Emoluments paid to Supervisory Board members amounted to T EUR 31 as for the previous
year.
Expenses for severance payments and pensions amounted to T EUR 541 (2006: T EUR 123)
for the Board of Managing Directors and executives and to T EUR 1,284 (2006: T EUR 325)
for other employees.
The former managing directors and their surviving dependents received emoluments
totalling EUR 320,450.40 (2006: T EUR 309).
Information on the remuneration of the Board of Managing Directors may be omitted
according to § 241 (4) UGB.
31
Equity Interests
in accordance with § 265 (2)
of the Austrian Commercial Code
Fully consolidated companies
Raiffeisen stavební spořitelna, a.s., Prague
Raiffeisen stambena štedionica d.d. Zagreb
Raiffeisen Bausparkassen Holding
GmbH, Vienna
Konevova s.r.o., Prague
Nominal capital
Share at
Dec. 31, 2007
CZK
HRK
650,000,000.00
106,500,000.00
75.00 %
82.91 %
EUR
CZK
10,000,000.00
10,000,000.00
100.00 %
100.00 %
SKK
2,000,000,000.00
32.50 %
96,000,000.00
5,100,000.00
36,400.00
33.35 %
25.00 %
50.00 %
Associated companies
Consolidation “at equity”
Prvá stavebná sporitel’ňa, a.s., Bratislava
Raiffeisen Banca pentru Locuinţe, S.A.,
Bucharest
Raiffeisen Wohnbaubank AG, Vienna
Raiffeisen Wohnbauleasing Ges.m.b.H., Vienna
RON
EUR
EUR
Non-consolidated companies
Excluded due to immateriality in accordance with § 249 (2) of the Austrian Commercial Code
RBM Wohnbau Ges.m.b.H., Vienna
RGS Wohnbau Ges.m.b.H., Vienna
Raiffeisen financni poradenstvi s.r.o., Prague
Dobre Byvanie s.r.o., Bratislava
EUR
EUR
CZK
SKK
37,000.00
36,336.42
1,000,000.00
200,000.00
100.00
100.00
100.00
100.00
%
%
%
%
Development of the consolidated Equity for the 2007 financial year
At Jan. 1, 2007
Dividends
Annual result
Allocations
At Dec. 31, 2007
Subscribed
capital
EUR
Additional
paid-in capital
EUR
Retained earnings
EUR
Minority
interests
EUR
35,000,000.00
0.00
0.00
0.00
35,000,000.00
8,091,830.00
0.00
0.00
0.00
8,091,830.00
138,467,215.51
0.00
0.00
17,514,980.03
155,982,195.54
13,646,515.93
0.00
0.00
1,634,825.75
15,281,341.68
32
Consolidated Cash Flow Statement for the 2007 financial year
Net cash flow from operating activities
Annual net income
Depreciation of intangible fixed assets and property, plant and equipment
Depreciation of financial assets
Adjustments to accruals for credit risks
as well as valuation of securities held as current assets
Prorated annual net income from associated companies
Dividends received from associated companies
Gains from disposals of non-current assets
Other non-cash expenditure and income
Changes
Claims on credit institutions
Claims on customers
Securities
Other assets from operating activities
Liabilities to credit institutions
Liabilities to customers
Supplementary capital
Other liabilities from operating activities
Exchange rate differences
2007 T EUR
2006 T EUR
26,530
3,109
57
24,112
4,610
45
12,094
6,837
9,083
–
1
0
44,035
4,849
8,551
7,733
–
3,210
4,484
34,072
– 134,613
– 506,306
490,426
– 28,500
128,858
– 90,971
–
1,337
18,795
18,074
– 61,539
113,144
– 470,975
224,068
24,467
53,091
214,529
0
– 12,582
– 42,006
137,808
–
Net cash flow from investing activities
Investments in financial assets
– 458,628
Investments in intangible fixed assets and property, plant and equipment
–
2,458
Proceeds from sales of financial assets
531,586
Proceeds from sales of intangible fixed assets and property, plant and equipment
9
70,509
Net cash flow from financing activities
Dividends
–
7,000
Reduction in subordinated liabilities
0
– 7,000
Change in cash and cash equivalents
1,970
Liability reserve
EUR
Untaxed reserves
EUR
Net income
after minorities
EUR
Total
EUR
67,006,100.00
0.00
0.00
2,842,400.00
69,848,500.00
324,512.00
0.00
0.00
– 109,027.00
215,485.00
8,599,636.38
– 7,000,000.00
6,783,113.87
0.00
8,382,750.25
271,135,809.82
– 7,000,000.00
6,783,113.87
21,883,178.78
292,802,102.47
33
–
– 623,832
–
4,591
518,937
4,183
–105,303
–
7,000
– 18,458
– 25,458
7,047
Supervisory Board
Elected members:
Chairman:
Walter Rothensteiner, Vienna
1st Deputy Chairman:
Ludwig Scharinger, Linz
2nd Deputy Chairman:
Karl Waltle, Bregenz
Erwin Hameseder, Vienna (from June 20, 2007)
Markus Mair, Graz
Julius Marhold, Eisenstadt
Klaus Pekarek, Klagenfurt
Peter Püspök, Vienna (until June 20, 2007)
Günther Reibersdorfer, Salzburg
Hannes Schmid, Innsbruck
Delegates from Employee Council:
Gabriele Arzberger
Johann Fahrner
Erwin Haider
Gerhard Pelzmann
Kerstin Petrak
State Commissioners
Arthur Winter
Johann Palkovitsch
Board of Managing Directors
Erich Rainbacher
Johann Ertl
34
UNQUALIFIED AUDITOR’S REPORT
We have audited the consolidated financial statements including the underlying accounting records of
Raiffeisen Bausparkasse Gesellschaft m.b.H.,
Vienna,
for the fiscal year from January 1, to December 31, 2007. The maintenance of the accounting records and
the preparation and contents of these financial statements including the management report in accordance
with the Austrian Commercial Code are the responsibility of the Company’s management. Our responsibility is
to express an opinion on these financial statements based on our audit and to state whether the management
report corresponds with the financial statements.
We conducted our audit in accordance with laws and regulations applicable in Austria and Austrian Standards
on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement and whether we can state that the management report is in accordance with the financial statements. In determining the audit procedures we considered our knowledge of the business, the economic and legal environment of the Company as well as the
expected occurance of errors. An audit involves procedures to obtain evidence about amounts and other disclosures in the consolidated financial statements and underlying accounting records on a sample basis. An
audit also includes assessing the accounting principles used and significant estimates made by management
as well as evaluating the overall consolidated financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
Our audit did not give rise to any objections. In our opinion, which is based on the results of our audit, the consolidated financial statements are in accordance with legal requirements and present fairly, in all material
respects the financial position and the results of its operations and its cash flows in accordance with Generally
Accepted Accounting Principles in Austria. The management report is in accordance with the consolidated
financial statements.
Vienna, April 4, 2008
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Rainer Hassler
Wirtschaftsprüfer
Austrian Chartered Accountant
ppa. Gerhard Feiler
Steuerberater
Austrian Certified Tax Advisor
35
Group Management report
1. General information
The group was established in 1998 through the acquisition of a 75 % majority share in Raiffeisen stavební spořitelna, a.s., Prague. Other important group companies are Prvá
stavebná sporitel’ňa, a.s., Bratislava, in which Raiffeisen Bausparkasse owns a 32.5 %
equity interest, Raiffeisen stambena štedionica d.d., Zagreb, in which Raiffeisen Bausparkasse owns 82.91 %, and Raiffeisen Banca pentru Locuinţe, S.A., Bucharest, 33.35 % of
which belongs to the group.
2. Economic development in 2007
In 2007, the Raiffeisen Bausparkasse Group registered a steady upward trend once again –
the highly satisfactory result of an ideal combination of tailored products, attractive conditions, high quality of service, close customer contact and individual advice. The number of
Bauspar deposits within the group climbed to around 3.6 million contracts. Particularly
where the core business housing financing was concerned, 2007 saw growth mainly due to
the lively demand for low-interest construction funding that lasted the whole year round
across the group. In the year 2007 as many as 671,400 new contracts were concluded
groupwide.
The new contracts in the group parent company, Raiffeisen Bausparkasse
Gesellschaft m.b.H., reached a historic high in 2007. In total, 308,400 new contracts
were concluded. This is the equivalent of a market share of 33 %. With a financing volume
of EUR 1.14 billion the previous year’s results were exceeded by 8.3 %.
With close to 170,000 new contracts, Prvá stavebná sporitel’ňa, a.s. topped the
previous year’s results by 9 %, achieving a market share of 84 %. Deposits rose by 8 % to
SKK 44.1 billion while loans were up by 12.6 % reaching SKK 45.7 billion. Due to the great
demand for low-interest Bauspar loans in the year 2007, the company issued its first
housing bond.
To Raiffeisen stavební spořitelna, a.s. the year 2007 was most importantly characterized by strong growth in sales. In 2007 around 109,000 contracts were concluded. This is
the equivalent of a market share of 13 % and an increase of 38.3 % compared with the year
previous. In 2007, the company’s market share reached 13 %. Bauspar deposits were
raised by 8.2 % and loans by 37.4 % in comparison to the previous year’s figures.
With more than 45,000 new contracts, Raiffeisen stambena štedionica d.d. increased
new business by 5 % compared to the year 2006 and achieved a market share of 30 %.
Contract volume was thus up by 3.6 % reaching 200,000. Loans rose to HRK 997 million
matching an increase to the previous year of 54.4 %.
With new business of almost 39,000 savings contracts, Romanian Raiffeisen Banca
pentru Locuinţe, S.A. reached a market share of 92 %. This helped RBL to achieve
remarkable results in its third full financial year.
3. Human resources
Employees group-wide are offered an extensive training program. In addition to specialized
courses, they also have the opportunity to attend courses geared to personal development.
The training courses are held by internal and external lecturers.
36
36
4. Economic outlook on 2008
Due to the attractive terms and conditions of our financing products supported by our uncomplicated, efficient customer service and by a rise in demand, we expect the financing
volume across the group to rise in comparison to 2007. The future earnings position of the
Raiffeisen Bausparkasse Group thus looks set to develop positively in the coming year.
5. Risk report
Overall risk management
A financial institution group’s ability to record and assess risks extensively, and to monitor
and control them on a regular basis, is increasingly becoming a decisive factor in competition. Risk management and risk controlling in the Raiffeisen Bausparkasse Group is geared
towards ensuring that credit, country, market, liquidity, investment and operational risks are
dealt with carefully and managed professionally, in order to secure the group’s long-term
success and to achieve market growth.
Risk management takes into account the national legislative environment, the requirements
financial institutions have to meet with regard to limiting risks arising from banking transactions, particularly regarding the type and scope of the business and the principles of
Basle II.
The Raiffeisen Bausparkasse Group’s managing directors are responsible for implementing
a risk policy determined by each risk type. This risk policy is an integral part of the bank’s
overall system of control, in other words, managing risk is systematically linked to managing earnings in all segments of the business. Risk policies and any changes to them, their
integration into the overall bank strategy and its control systems are documented and
communicated throughout the Raiffeisen Bausparkasse Group to ensure that risks are
managed in the same way across all business segments.
Risk policy comprises the planned development of the business as a whole, separate asset
and liability planning, and specific planning for the “Bausparen” and “key account” segments. Limits on all relevant risks, particularly cluster risks in the form of minimum and
maximum limits for major investments, are set by the Board of Managing Directors.
The Raiffeisen Bausparkasse Group’s managing directors decide what methods to use to
identify, assess and monitor risks and have drawn up guidelines to this effect. They are
supported in these tasks by risk control and risk management units as well as by specific
committees.
These specific committees, which meet on a monthly basis, consist of the managing directors, the senior managers concerned and external specialists. They assess the current
interest rate risk situation, taking risk-bearing capacity and corresponding risk limits into
consideration. These committees support management in allocating the risk budget and in
controlling liquidity risk and interest rate risk. These cross-segment committees are
responsible for the ongoing development and implementation of risk assessment methods,
for improving the accuracy of risk controlling instruments and for regularly updating risk
management guidelines.
The “risk management” department of the group parent operates as a group-wide service
unit responsible for central risk controlling. At present it is focusing on the implementation
of measures arising from Basle II. This department’s tasks comprise drawing up and implementing uniform guidelines relating to risk management, assessing all risks (credit, country,
investment, market and operational risks) and providing unbiased reporting on risk profile to
the Board of Managing Directors. By aggregating these risks into one overall bank exposure and comparing this to the bank’s risk-bearing capacity, the basis for risk-adjusted allocation of capital and performance measurement is determined.
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Market risk
The Raiffeisen Bausparkasse Group defines market risk as the potential loss due to market
changes resulting from fluctuating or changing interest rates and prices. As Raiffeisen
Bausparkasse Group companies do not keep commercial books of account, this only concerns the bank’s own account positions. Risk exposures either arise from transactions with
customers or are due to positions that have been intentionally taken and are managed by
the staff units or departments “asset-liability management” and “treasury”.
The Board of Managing Directors approves, monitors and controls all market risks by
applying various limits. Overall exposure is determined by the Board based on risk-bearing
capacity and earnings targets. The individual limits set at account level are dependent on
the various risk factors. These limits include value-at-risk (VaR) limits, stop-loss limits,
nominal limits and product-related nominal limits.
Credit risk
The Raiffeisen Bausparkasse Group’s credit risk mainly relates to the default risk among
private and corporate customers. Default risk is the risk of a customer not meeting agreed
payment obligations. In addition to default risk, migration risks due to changes in credit
ratings are treated as a separate category. There is no country risk in this business sector
due to the fact that each Raiffeisen Bausparkasse Group company focuses solely on its
domestic market.
Credit risk is monitored and analyzed on the basis of individual credits and customers, as
well as on a portfolio basis. The credit risk policy approved by the Board of Managing
Directors forms the basis on which credit risk is controlled and credit decisions are made.
Risk classification procedures to assess default risk are used to a certain extent in assessing credit worthiness. Rating models for corporate customers comprise several rating
levels.
Raiffeisen Bausparkasse, as parent company, has set up its own project group headed by
an organizational risk management unit to implement the independent credit risk assessment required by Basle II and to enable it to calculate required equity funds in future by
applying a standard method.
Investment risk
Risks relating to equity interests are also part of the bank’s account positions. However, this
type of risk does not extend to group subsidiaries controlled strategically and operatively by
Raiffeisen Bausparkasse, as risks relating to these subsidiaries are identified and assessed
specifically in the course of consolidation.
6. Other disclosures
In March 2008, Raiffeisen Bausparkasse acquired Hypo Stavební Spořitelna, a.s. based in
Prague via its holding company. This will help us to continue to expand our position in the
Czech Bauspar market. The market share of both building societies together amounts to
around 20 %.
Research and development expenses were incurred by the group solely in connection with
the further development of the Bauspar systems and the development and structuring of
new tariffs.
Vienna, April 4, 2008
Erich Rainbacher
Chairman & Managing Director
m. p.
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Johann Ertl
Managing Director
m. p.
Owner
and Publisher
Raiffeisen Bausparkasse
Gesellschaft m.b.H.
Editor:
Sonja Hochreiter
Adress of the above:
1050 Vienna,
Wiedner Hauptstraße 94
Photos:
Ifkovits
Wilke
Rheinzink
www.croatia.hr
www.czechtourism.com
www.romaniatravel.com
www.slovakiatourism.com
Production:
AV+Astoria Druckzentrum GmbH
55-0608-0,3-AV
Raiffeisen Bausparkasse Gesellschaft m.b.H.
1050 Vienna, Wiedner Hauptstraße 94
Telefon 0043/1/ 546 46/0
Internet: http://www.wohnbausparen.at
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