2014 Annual Report Raiffeisenverband Salzburg

2014 Annual Report
Raiffeisenverband Salzburg
KEY FIGURES OF THE GROUP
2014 Annual Report
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KEY FIGURES OF THE GROUP
in TEUR
31.12.2012
31.12.2013
31.12.2014
Total assets
7,607,669
6,714,780
6,191,019
-523,761
-7.8%
Loans and advances to customers
3,259,456
3,238,287
2,899,545
-338,742
-10.5%
Liabilities to customers (excl. repo transactions)
2,516,927
2,482,481
2,149,490
-332,991
-13.4%
416,118
441,248
462,569
21,321
4.8%
9.3%
10.2%
11.4%
1.2%
614,970
652,883
624,343
-28,540
Total own funds ratio (total risk)
13.7%
15.0%
15.4%
0.4%
Operating result
53,927
57,598
50,726
-6,872
-11.9%
Profit on ordinary activities
29,867
40,112
12,217
-27,895
-69.5%
Cost-Income-Ratio
(adjusted for warehousing segment)
62.4%
61.6%
62.8%
1.2%
7.3%
9.1%
2.6%
-6.5%
Total core capital (CET 1)
Total core capital ratio (CET 1)
Total own funds
Return on Equity (RoE, before tax)
3
Change
-4.4%
Raiffeisenverband Salzburg
CONSOLIDATED FIGURES 2014
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CONSOLIDATED BALANCE SHEET
ASSETS (TEUR)
1. Cash in hand, balances with central banks
and post office banks
31.12.2014
31.12.2013
17,805
22,614
588,186
588,186
0
580,181
580,181
0
3. Loans and advances to credit institutions
a)Repayable on demand
b)Other loans and advances
1,613,120
717,543
895,577
1,704,671
783,710
920,961
4. Loans and advances to customers
2,899,545
3,238,287
384,113
20,181
363,932
0
513,007
10,176
502,831
0
40,497
2,981
312,297
129,182
3,460
4,147
35,810
0
259,963
0
9,231
0
1,518
0
188,510
172,587
173,607
154,529
0
0
0
0
100,209
87,725
0
1
1,695
2,063
6,191,019
6,714,780
2.
Treasury bills and other bills eligible
for refinancing with central banks
a)Treasury bills and similar securities
b)Other bills eligible for refinancing at central banks
5. Debt securities including fixed-income securities
a)Issued by public bodies
b)Issued by other borrowers
showing separately: own debt securities
6. Shares and other variable-yield securities
7. Participating interests
showing separately:
Participating interests in credit institutions
8. Shares in affiliated undertakings
showing separately: Shares in credit institutions
9. Intangible fixed assets
showing separately: Goodwill
10. Tangible assets
showing separately: Land and buildings occupied
by a credit institution for its own activities
11. Own shares as well as shares in a controlling
company or in a company holding a majority of shares
showing separately: Nominal value
12. Other assets
13. Subscribed capital called but not paid
14. Prepayments and accrued income
Total assets
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CONSOLIDATED BALANCE SHEET
LIABILITIES (TEUR)
31.12.2014
31.12.2013
1. Liabilities to credit institutions
a)Repayable on demand
b)With agreed maturity dates or periods of notice
2,290,666
1,004,746
1,285,920
2,423,226
1,407,260
1,015,966
2. Liabilities to customers (non-banks)
a)Saving deposits
showing separately:
aa) Repayable on demand
bb) With agreed maturity dates or periods of notice
b)Other liabilities
showing separately:
aa) Repayable on demand
bb) With agreed maturity dates or periods of notice
2,149,490
791,187
2,482,481
798,164
152,516
638,671
1,358,303
141,777
656,387
1,684,317
1,181,337
176,966
1,268,987
415,330
3. Securitised liabilities *
a)Debt securities issued
b)Other securitised liabilities
1,070,761
0
1,070,761
1,142,422
0
1,142,422
73,390
73,586
4,138
4,216
6.Provisions
a)Provision for severance payments
b)Provision for pensions
c)Provision for taxation
d) Other provisions
68,407
23,058
23,823
2,371
19,155
70,342
22,662
21,660
2,398
23,623
6. A Fund for general banking risks
16,756
16,756
7. Supplementary capital pursuant to part 2 titel I capital 4
of regulation (EU) 575/2013 *
41,350
48,750
8. Additional core capital pursuant to part 2 titel I capitel 3
of regulation (EU) 575/2013 *
0
10,000
8a. Mandatory convertible bonds pursuant to par. 26 BWG
0
0
8b.Instruments without voting rights pursuant to par. 26a BWG
0
0
54,396
54,221
1,344
1,344
0
1,344
1,344
0
345,264
0
67,823
0
277,441
310,877
0
66,034
0
244,843
72,058
72,058
0
0
3,000
4,500
6,191,019
6,714,780
4. Other liabilities
5. Accruals and deferred income
9. Subscribed capital
10. Capital reserves
a)Committed
b)Uncommitted
11. Retained earnings
a)Legal reserve
b)Statutory reserve
c)Adjustment item for capital consolidation
d) Other reserves
12. Liability reserve pursuant to Article 23 para. 6 BWG
13. Minority Interests
14. Consolidated net profit for the year
Total liabilities
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AS OF 31 DECEMBER 2014
OFF-BALANCE-SHEET-ITEMS (TEUR)
31.12.2014
31.12.2013
813,173
1,075,777
582,750
582,932
0
566,995
0
576,270
783,778
776,838
0
0
57,903
57,268
624,343
652,883
49,388
n.a.
4,059,082
347,372
ASSETS
1. Foreign assets
LIABILITIES
1.
Contingent liabilities
showing separately:
a) Acceptances and endorsements
b)Guarantees and assets pledged as collateral security
2.Commitments
showing separately:
Commitments arising from repurchase transactions
3. Commitments arising from agency services
4.
Eligible capital pursuant to part 2 of regulation (EU) 575/2013 *
showing separately:
Own funds pursuant to part 2 title I capital 4
of regulation (EU) 575/2013
5. Capital requirement pursuant to Article 92
of regulation (EU) 575/2013
showing separately:
Capital requirement pursuant to Article 92 para. 1
nos. a of relgulation (EU) 575/2013
11.40%
n.a.
Capital requirement pursuant to Article 92 para. 1
nos. b of relgulation (EU) 575/2013
11.55%
n.a.
Capital requirement pursuant to Article 92 para. 1
nos. c of relgulation (EU) 575/2013
15.38%
n.a.
649,659
780,977
6. Foreign liabilities
* The previous year figures are based on the legal position of Basel II and are only comparable to a limited extent.
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CONSOLIDATED PROFIT AND LOSS
TEUR
2014
2013
1. Interest receivable and similar income
showing separately: From fixed-income securities
111,142
31,280
124,692
39,783
2. Interest payable and similar expenses
-55,605
-65,881
I. NET INTEREST INCOME
55,537
58,811
3.
20,269
1
175
17,578
0
2,515
16,731
0
1,631
9,272
0
5,828
4. Commissions receivable
42,101
48,405
5. Commissions payable
-7,006
-8,824
2,577
3,206
82,165
94,905
195,644
213,235
-132,713
-96,929
-140,901
-99,578
-68,722
-72,822
-18,776
-906
-3,017
-2,163
-19,670
-1,142
-2,950
-599
-3,345
-35,784
-2,395
-41,322
-10,964
-10,755
-1,241
-3,981
-144,918
-155,637
50,726
57,598
Income from securities and participating interests
a)Income from shares and other variable-yield securities
b)Income from participating interests
c)Income from shares in affiliated undertakings
d)Income from shares in companies stated as associates
e)Income from other participating interests
6. Net profit on financial operations
7. Other operating income
II. OPERATING INCOME
8. General administrative expenses
a)Staff costs
showing separately:
aa)Wages and salaries
bb)Expenses for statutory social contributions and compulsory
contributions related to wages and salaries
cc) Other social expenses
dd)Expenses for pensions and assistance
ee)Allocations to provision for pensions
ff) Expenses for severance payments and
contributions to severance and retirement funds
b)Other administrative expenses
9. Value adjustments in respect of asset items 9 and 10
10. Other operating expenses
III. OPERATING EXPENSES
IV. OPERATING RESULT
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ACCOUNT AS OF 31 DECEMBER 2014
TEUR
2014
2013
-20,267
-30,182
-18,242
12,697
0
0
12,217
40,112
15. Extraordinary income
showing separately:
Withdrawals from the fund for general banking risks
0
0
0
0
16. Extraordinary expenses
showing separately:
Allocations to the fund for general banking risks
0
0
0
0
17. Extraordinary result
(subtotal of items 15 and 16)
0
0
-185
-1,801
-5,223
-4,212
6,809
34,099
0
-820
-3,809
-28,779
0
0
3,000
4,500
0
0
3,000
4,500
11. Value adjustments and re-adjustments in respect of
loans and advances and provisions for contingent liabilities
and for commitments
13.
Value adjustments and re-adjustments in respect of
transferable securities held as financial fixed assets.
participating interests and shares in affiliated undertakings
showing separately:
From companies stated as associates
V . PROFIT ON ORDINARY ACTIVITIES
18. Tax on profit or loss
19. Other taxes not reported under item 18
VI. PROFIT FOR THE YEAR AFTER TAX
20. Minority interests
21. Changes in reserves
showing separately:
Allocation (-) / Reversal (+) liability reserve
VII. CONSOLIDATED NET INCOME FOR THE YEAR
22. Profit or loss brought forward
VIII.CONSOLIDATED NET PROFIT FOR THE YEAR
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Raiffeisenverband Salzburg
NOTES TO THE CONSOLIDATED ACCOUNTS
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NOTES TO THE CONSOLIDATED ACCOUNTS
According to § 265 UGB (Austrian Commercial
Code) the consolidated balance sheet as well
as the consolidated profit and loss account and
the methods of accounting and valuation applied
herein have to be commented. The notes were
drawn up in due consideration of the provisions
of the Austrian Commercial Code (UGB) and of
the special provisions of the Austrian Banking Act
(BWG). The consolidated financial statements were
prepared pursuant to annex 2 to § 43 BWG, BGBl
532/1993, relevant version.
A.GENERAL NOTES
The annual financial statements were drawn up in
line with the principles of orderly accounting and
in accordance with the generally accepted standard practice of providing a true and fair view of
the net assets and financial conditions of the company. The requirements of the relevant versions of
the Austrian Commercial Code, the provisions of
the Austrian Banking Act and the regulation (EU)
575/2013 (CRR) were applied.
B.CONSOLIDATION PRINCIPLES
AND METHODS
a) Full consolidation
Capital consolidation was conducted in accordance with § 254(1) (1) UGB (book value method),
with the acquisition costs for the investments in
subsidiaries charged against the respective proportionate equity at the acquisition date or the time
of initial inclusion. The initial consolidation took
place on the effective date of 1st January 1995, or
upon initial inclusion in the consolidated financial
statements for companies subject to consolidation after this date. Receivables and liabilities existing between the consolidated subsidiaries were
eliminated as part of debt consolidation. Equally,
intra-group revenues and expenses were set off
by means of consolidation of revenues and expenses.
§ 256(2)(2) UGB was applied for inter-company
profits and losses, which does not require an elimination of inter-company profits and losses provided that these are, pursuant to Para.1, of only
minor importance in providing a true and fair view
of the Group‘s net assets and financial conditions.
b) Equity consolidation
Equity consolidation was conducted in accordance
with § 264(1)(1) UGB (book value method). The
date of the subsidiary‘s initial inclusion in the consolidated financial statements was chosen as the
significant date for determining the difference between the book value of the respective investment
and the respective proportionate equity.
The initial consolidation took place on the effective
date of 1 January 1995, or upon initial inclusion in
the consolidated financial statements for companies included according to the equity method after
this date. Consolidation according to the equity
method occurred based on the last available financial statements. Any variations in valuation methods to the parent company were not adjusted.
§ 256(1) UGB does not require an elimination of
inter-company profits and losses.
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NOTES TO THE CONSOLIDATED ACCOUNTS
C.SCOPE OF CONSOLIDATION
1. Change of the scope of consolidation
In 2014, the Group´s structure has changed due
to the new supervisory regulations and the sale of
Salzburg München Bank AG. Final deconsolidation
of Salzburg München Bank AG: In mid-December
2013, all shares in Salzburg München Bank AG
were sold to Airbus Group. The close of the sale
took place in July 2014. The Salzburg München
Bank AG has thus been deconsolidated with effect
from the Closing Date.
2. Disclosures on investments
a) Fully consolidated companies
The companies included in the Group have been
adjusted according to the new supervisory regulations.
Name and registered office
Share of capital
direct
indirect
Agroconsult Austria Gesellschaft m.b.H., Sbg.
100.00%
01.01.2014
Industriebeteiligungs-GmbH, Sbg.
100.00%
01.01.2014
Unternehmensbeteiligung GmbH, Sbg.
Fremdenverkehrs GmbH, Sbg.
Inclusion according to § 30 (1) Z. 5 BWG
100.00%
Initial consolidation
01.01.2014
01.01.2014
West Consult Objekterrichtungs- und
Verwaltungs II Gesellschaft m.b.H., Sbg.
99.00%
0.50%
31.12.2014
West Consult Objekterrichtungs- und
Verwaltungs III Gesellschaft m.b.H., Sbg.
99.00%
0.50%
31.12.2014
West Consult Objekterrichtungs- und
Verwaltungs-IV Gesellschaft m.b.H., Sbg.
100.00%
West Consult Leasing GmbH, Sbg.
99.00%
31.12.2014
0.50%
31.12.2014
WECO FH Holztechnikum GmbH, Sbg.
100.00%
31.12.2014
West Consult Revitalisierung Gesellschaft m.b.H., Sbg.
100.00%
31.12.2014
WECO REHA Leasing GmbH
100.00%
31.12.2014
Kienberg – Panoramastraße Errichtungs-GmbH, Sbg.
100.00%
31.12.2014
SABAG Garagen Projekterrichtungs- und Vermietungs-GmbH, Sbg.
99.00%
1.00%
31.12.2014
SABAG Schulen Errichtungs- und Vermietungs-GmbH, Sbg.
99.00%
1.00%
31.12.2014
SABAG Projekterrichtungs- und Vermietungs-GmbH GmbH, Sbg.
99.00%
1.00%
31.12.2014
Tinca-Beteiligungs-GmbH, Sbg.
100.00%
31.12.2014
vis-vitalis Lizenz- und Handels GmbH
100.00%
31.12.2014
PMN Beteiligungs- u. Finanzberatungs Gesellschaft m.b.H., Sbg.
100.00%
31.12.2014
BVG Liegenschaftsverwaltung GmbH, Sbg.
100.00%
31.12.2014
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b) Companies consolidated at equity
Due to the requirements of the new Basel III regulations, the scope of consolidation underwent a critical assessment. In the course of this adjustment
process the companies consolidated at equity
were also reassessed. In order to evaluate the materiality of the associated companies, a materiality
calculation was carried out based on quantitative
indicators (Equity, operating result) as well as qua-
litative indicators (one-time effect, sustainability).
Companies, which are not consolidated at equity
due to immateriality, are shown in the Group´s list
of shareholdings.
To fulfill the non-profit status of Heimat Österreich
in the consolidated balance sheet, the shareholding was written down by EUR 13.0 million. Thereof, EUR 10.3 was booked affecting net income.
Share of capital
direct
indirect
Name and registered office
Heimat Österreich, Salzburg
Financial statements dated
25.00%
c) Other companies
These are subsidiaries not included in the consolidated financial statements due to their status of
31.12.2013
having only minor importance in providing a true
and fair view of the Group´s financial conditions.
Name and registered office
Share of capital
direct
indirect
Value Holdings Vermögensmanagement GmbH,
München
67.50%
827
409
12/13
München Salzburg Besitzgesellschaft mbH,
München
100.00%
29
-44
12/13
Mittelstandsbeteiligungs GmbH,
Salzburg
100.00%
8,679
11,118
12/14
110
83
12/13
Value-Holding Fondsvermittlung GmbH,
München
67.5%
Equity in
TEUR
Operating
result in TEUR
Balance
sheet
„Gut Schloßhof“ Handels GmbH,
Salzburg
100.00%
1,225
64
12/13
Raiffeisenverband Salzburg Anteils- und
Beteiligungsverwaltung GmbH, Salzburg
100.00%
1,724
33
12/13
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NOTES TO THE CONSOLIDATED ACCOUNTS
D. ACCOUNTING AND
VALUATION PRINCIPLES
General principles
The consolidated financial statements were prepared under consideration of the principle of balance
sheet continuity. The valuation of assets and liabilities was based on the principle of individual evaluation assuming the company´s ability as a going
concern. In accordance with prudent commercial
practices only realised gains as well as all identifiable risks and anticipated losses were taken into the
profit and loss account at closing date.
Foreign currency translation
Foreign currencies were converted at the reference rate, published by the European Central
Bank according to the provisions of § 58(1) BWG.
In cases where no reference rate was available, foreign currencies were converted at the middle rate
of reference banks.
Securities
Fixed Assets
Regarding long-term fixed-income securities admitted to listing on a recognised stock exchange
according to Article 4 clause 72 of Regulation (EU)
No 575/2013, the option of write-ups and writedowns according to § 56(2-3) BWG was applied.
Regarding long-term fixed-income securities not listed on a recognised stock exchange according to
Article 4 clause 72 of Regulation (EU) No 575/2013,
the positive difference between the acquisition
costs and the amount repayable at maturity was recognised as expense immediately, (§ 56(2) BWG).
Securities used as cover funds for ward money
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were valued according to the strict lower of cost
method pursuant to § 2(3) Mündelsicherheitsverordnung (Austrian Trustees Securities Directive). All
other securities reported under fixed assets were
recognised according to § 56(1) BWG in compliance with the rules for the valuation of fixed assets,
stipulated in the Austrian business law.
Current Assets / Trading Positions
Securities held for trading and listed at a recognised
exchange pursuant to Article 4 clause 72 of Regulation (EU) No 575/2013, were valued at their market price. A market price, determined under liquid
market conditions at the respective valuation date,
is used as the valuation rate. All other trading securities were valued according to § 207 UGB. Investment funds were valued at their calculated value.
Own stocks of subordinated own issues
Own stocks of subordinated own issues reported
on the asset side of the balance sheet amounted to
TEUR 1,850 (PY TEUR 3,100) and are recognized
at their nominal value.
Risk provisions
Value adjustments and provisions were made for
recognisable risks in the case of loans and advances to credit institutions and loans and advances
to customers.
Participating interests
Participation interests and shares in affiliated undertakings were carried at acquisition costs less
extraordinary depreciation, where appropriate.
Extraordinary depreciation is made in the case of
value impairments which are likely to be of perma-
nent nature, due to sustained losses, a reduction
in equity and/or a reduced earnings capacity level.
Tangible Assets
Property and equipment were recognised at cost
less scheduled depreciation. Assets are depreciated on a straight-line basis. Depreciation on
property and plant ranges between 1.84% and
20.00% and between 5.00% and 33.3% on equipment. Extraordinary depreciation is made in the
case of value impairments which are likely to be
of a permanent nature. The low-value assets were
fully written-off in the year of acquisition according
to § 226(3) UGB.
Capital expenses
Premiums and discounts (Agios/Disagios) were
distributed over the term of debt. Other capital expenses were recognised in the income statement
of the year of issuance.
Goods on stock
Stock was valued in accordance with the strict
lower of cost or market principle. Relating to agricultural machinery the identity pricing method was
applied and the FIFO-method for other inventory.
Care was taken to ensure a loss-free valuation.
Liabilities
Liabilities were recognised at their nominal value or
at their higher redemption amount.
Provisions
Pension obligations
The inclusion in the balance sheet is determined
according to the provisions of §§ 198 and 211 UGB
and the recommendations of the expert report no.
80 of the Examination Committee at the Austrian
Chamber of Accountants and Tax Consultants
(KFS/RL3). The provisions to cover pension obligations were calculated according to the partial
value method. In this case total expenditure of a
commitment is calculated and evenly distributed
over the entire period of financing. For beneficiaries – comprising persons entitled in expectancy
and benefit recipients – as well as for persons entitled to benefits that already reached the assumed
retirement age the provisions are recognised at
present value. The calculations were made in accordance with current mortality tables „AVÖ 2008
– P – Rechnungsgrundlagen für die Pensionsversicherung – Pagler & Pagler“, using the variant for
salaried employees. Our calculations were based
on an assumed retirement age of 65 for two men
and 62 for all other active employees. The pension
obligations are individually customised and partly
adjusted in compliance with the applicable consumer price index. An actuarial interest rate of 2.25%
was applied, unchanged from previous year.
Severance Obligations
Provisions for severance payments were calculated according to financial mathematical principles,
based on an assumed retirement age of 60-65
years for women and 65 years for men and an interest rate of 2.25%. The calculation was made in
accordance with the expert report (KFS/RL 2) and
the modifications and amendments of the Institute
for Business Economics, Tax Law, and Organization of the Austrian Chamber of Public Accountants
and Tax Advisers. Additionally, a fluctuation discount was applied.
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NOTES TO THE CONSOLIDATED ACCOUNTS
Anniversary Bonuses
Provisions for obligations to pay anniversary bonuses were calculated according to financial mathematical principles and by applying a fluctuation
discount as well as an interest rate of 2.25%, considering life expectancy according to the Austrian
General Mortality Table.
Derivative financial instruments
For derivative financial instruments the fair value is
calculated. The fair value is the amount at which
the financial instruments can be sold or purchased
on the balance sheet date at fair market conditions.
Market values were applied in the assessment, if
available. Internal assessment methods with current market parameters, particularly the present
value technique and the option pricing model,
were used for financial instruments without a market value.
Generally, interest rate options (Caps, Floors)
and currency rate options are arbitrage activities.
Products for purchase and for disposal are equal
in their terms. The differences between the value
received and the value cleared are listed as revenue and expense in the profit and loss statement.
If in individual cases open positions occur, they
are valued subject to imparity. All swap contracts
have been concluded for hedging reasons. Interest rate swaps used to hedge the fixed interest
rate risks:
• own issues (micro hedge)
• nostro securities (micro hedge)
• loans (micro- and portfolio hedge)
• fixed saving deposits (portfolio hedge)
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• time deposits (portfolio hedge)
• No macro hedges and cash flow
hedges were used
The hedge is carried out in accordance with the
maturity of the underlying transaction, or the maturity of the portfolio. These hedges form a valuation unit with a particular underlying transaction as
the particular future payment flows will even out.
The effectiveness of the portfolio hedges is controlled by special effectiveness tests. During the
fiscal year, the hedging relationship is tested by
means of prospective effectiveness test. Based on
a present value simulation, and planning horizon of
one year, an interest rate change of +/– 100 basis
points is assumed. Thereby, the capital payment
flow from the underlying business, as well as the
hedging products (interest rate swap) are analysed
separately. These two present value results are set
in relation to each other and may lie between 0.8
and 1.25 pursuant to AFRAC.
At the end of the financial year a unique retrospective effectiveness test is carried out. In this connection, the changes in the present value of the underlying business and the hedging products (interest
rate swap) are analysed on the basis of a modern
historical simulation. The relations between the present values are allowed to range between 0.8 and
1.25 according to AFRAC. Interest rate swaps that
are not used for hedging purposes were valued
based on the imparity principle. Exchange rate
risks are hedged with:
• currency swaps
• forward exchange transactions
E. NOTES TO THE CONSOLIDATED BALANCE SHEET
1. Maturity breakdown
Receivables from banks and non-banks, not available on demand, and payables to banks and non-banks,
not available on demand are classified according to the remaining time to maturity:
Receivables from banks, not available on demand
TEUR
TEUR (PY)
up to 3 months
234,228
394,407
more than 3 months to 1 year
205,797
257,169
more than 1 to 5 years
454,134
266,620
1,418
2,765
more than 5 years
Receivables from non-banks, not available on demand
TEUR
TEUR (PY)
up to 3 months
248,680
273,040
more than 3 months to 1 year
256,353
298,767
more than 1 to 5 years
746,602
817,924
more than 5 years
898,962
966,277
TEUR
TEUR (PY)
up to 3 months
415,708
314,309
more than 3 months to 1 year
608,937
426,069
more than 1 to 5 years
236,662
261,162
more than 5 years
24,614
14,424
Payables to non-banks incl. savings deposits, not available on demand
TEUR
TEUR (PY)
up to 3 months
306,386
503,745
more than 3 months to 1 year
460,819
466,629
46,534
99,640
1,898
1,703
Payables to banks, not available on demand
more than 1 to 5 years
more than 5 years
17
Raiffeisenverband Salzburg
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NOTES TO THE CONSOLIDATED ACCOUNTS
2. Securities (asset item 5)
The book value (including accrued interest) of the debt securities including fixed-income securities admitted
to trading amounts to TEUR 384,113 (PY TEUR 513,007). Thereof securities with a nominal value of TEUR
378,775 (PY TEUR 503,017) were recognised as fixed assets. The allocation to the fixed assets was accomplished by intention of the Management Board. Securities trading book consists of the following positions:
TEUR
Bonds, convertible bonds
2,027
2,466
1
183
-1,354
-8,192
Investment certificates / Certificates
Interest rate futures sales
TEUR (PY)
Classification of book value/fair value pursuant to § 237a (1) (2) UGB in TEUR
Balance sheet item
Market value 2014
Treasury bills
Book value 2014
Market value 2013
Book value 2013
10,010
10,025
0
0
Loans and advances to banks
0
0
0
0
Loans and advances to customers
0
0
0
0
Debt securities /
fixed-incomes securities
73,601
75,213
55,618
57,684
Total
83,611
85,238
55,618
57,684
The bonds and securities in the books are mainly from first-class issuers. Therefore, a full repayment according to schedule is anticipated.
Subordinated liabilities pursuant to § 64 (1) 5 BWG
The securitised subordinated liabilities which amounted to more than 10% of all subordinated liabilities on
the 31.12.2014 are:
Subordinated to the liabilities which appear on the liability item 1 to 4:
• Salzburger Nachranganleihe 08-2018/17, TEUR 30,000 (PY TEUR 30,000), due on 24.12.2018, fixed in terest rate 4,75% until 23.12.2013, an interest rate of 125 basis points above 3-month-EURIBOR will follow,
settlement option at rate 100 on 23.12.2013
2014 Annual Report
18
•Callable variable Salzburger Nachranganleihe 2011-2021/19, TEUR 6,250 (PY TEUR 6,250), due on
16.12.2021, interest rate 1st year: 3,5% fixed, interest rate years 2 to 5: 120 basis points above 3-month EURIBOR, interest rate years 6 to 10: 150 basis points above 3-month-EURIBOR, settlement option at rate
100, quarterly starting from 16.12.2016.
Subordinated to the liabilities which appear on the liability item 1 to 4 and 7:
• Subordinated hybrid capital bond 2009 may not be paid retroactively TEUR 10,000 (PY 10,000), without a
fixed contract period, interest rate 5% p.a., early settlement option is excluded.
In addition, there are two securitised subordinated bonds with an issuing volume of total TEUR 5,100 (due
in 2021 or 2022), which do not exceed 10% of the sum of all subordinated liabilities. These bonds are subordinated to the liabilities of the liability item 1 to 4.
Ward Money
The ward money at the reporting date amounted to TEUR 6,480 (PY TEUR 4,694).
Gilt-edged securities with a total nominal value of TEUR 7,500 were attributed to backing.
3. Investments and related party transactions
Profit and loss transfer agreements exist for the following affiliated companies:
• Raiffeisen Immobilien Salzburg eGen (formerly Raiffeisen Realitäten reg. GenmbH)
• Raiffeisen Salzburg Vorsorge GmbH
• LGH Obertrum reg. GenmbH
4. Fixed Assets
The land value of all developed properties is TEUR 83,084 (PY 76,983).
5. Other Assets
Classification and illustration of other assets according to the most significant individual amounts, as far as
these amounts are material for the assessment of the financial statements.
TEUR
TEUR (PY)
Receivables from goods business
18,553
18,423
Goods in stock
26,332
27,643
Accruals for swaps
7,932
10,111
Other receivables
7,160
12,408
19
Raiffeisenverband Salzburg
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NOTES TO THE CONSOLIDATED ACCOUNTS
The Company has chosen the option not to capitalize deferred taxes on temporary differences between the
statutory and the tax result. The value which would have been possible to capitalize according to § 198 (10)
UGB was TEUR 10,660 (PY TEUR 4,494).
6. Equity and equity-related liabilities
The untaxed reserves of the parent company totalling EUR 6,195,208.40 (PY TEUR 6,482) were allocated
in the Consolidated Balance Sheet in full to retained earnings. The classification of the core capital and the
additional own fund are as follows:
TEUR
Subscribed capital
TEUR (PY)
48,759
54,220
1,344
1,344
344,138
310,877
Other reserves
69,892
79,270
Deductions from core tier 1 capital
-1,564
-4,463
462,569
441,248
6,400
10,000
Core tier 1 capital
468,969
451,248
Additional tier 2 capital
155,489
204,579
-115
-2,944
624,343
652,883
Capital reserves
Retained earnings
Common equity tier 1 (CET 1)
Additional tier 1
Deductions from additional tier 2 capital
Total own funds
7. Disclosures concerning various items in the balance sheet
a) Bonds with a nominal value of TEUR 50 are deposited in an account at OeKB to secure membership on
the Vienna Stock Exchange (Arrangement deposit).
Further trust deposits:
• Trust deposit for Euroclear
Nom. value
TEUR 10,500
• Trust deposit for Clearstreambanking Frankfurt
Nom. value
TEUR 1,500
• Trust deposit for options Commerzbank
Nom. value
TEUR 1,000
• Trust deposit for retirement provisions
Nom. value
TEUR 10,175
• Trust deposit for OeKB/CBF
Nom. value
TEUR 1,500
• Trust deposit for derivatives RBI
Nom. value
TEUR 77,500
2014 Annual Report
20
Assets assigned as security:
Reason of assignment
TEUR
Subsidised export loans
30,074
39,582
Austrian Kontrollbank
Global loans
45,645
30,957
European Investment Bank
German state-aided loans
1,788
963
Bavarian subsidised loans
22,555
16,953
260,532
261,385
Monetary Policy Operations/OeNB
TEUR (PY)
assigned to
KFW Banking Group
LFA Bavarian Subsidies Bank
Austrian National Bank
b) Total amount of assets and liabilities in foreign currency:
TEUR
TEUR (PY)
Foreign currency assets
510,000
590,000
Foreign currency liabilities
175,000
228,000
8. Off-Balance Sheet Items
Among off-balance sheet transactions are information on positive fair values of derivative transactions. For
negative fair values a provision for contingent losses was made, provided it is not part of hedging transactions.
Furthermore, hedging transactions are entered into in the course of lending, that do not appear in the balance sheet. Mortgages, guarantees or rather loan guarantees, cash collaterals and other eligible assets
mainly serve as collateral. In the disclosure report, according to Part 8 in the Regulation (EU) 575/2013,
information is presented on collaterals valued from the supervisory point of view.
The disclosure report can be found on consolidated basis at www.salzburg.raiffeisen.at
(Impressum – Offenlegung).
21
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NOTES TO THE CONSOLIDATED ACCOUNTS
F. NOTES TO THE CONSOLIDATED INCOME STATEMENT
1.Other operating income consists of the following significant individual items:
TEUR
TEUR (PY)
Total amount
82,165
94,905
- thereof net earnings from goods operations
45,692
45,992
- thereof income from the IT centre
11,424
19,469
There is no disclosure of other operating expenses due to immateriality.
2.The total amount of income from administrative and agency services are TEUR 8,712 (PY TEUR 9,158).
3.The expenses for the auditor amount to TEUR 440 (PY TEUR 365). Breakdown of the auditors fees are as
follows:
TEUR
Audit of financial statements
TEUR (PY)
351
327
Tax consultancy
3
2
Other confirmation services
0
2
85
33
Other services
4. Losses realized on the disposal of fixed assets amounted to TEUR 116 (PY TEUR 242).
5. A tax on revenue and profit amounting to TEUR 185 (PY TEUR 1,801) was charged against profit on ordinary activities.
2014 Annual Report
22
G. OTHER INFORMATION
1.In the 2014 financial year the average number of staff employed was 1.684 (PY 1,764). Thereof, 1,419 (PY
1,494) were employees and 265 (PY 270) workers. Included in these figures is an average of 64 (PY 74) persons employed at subsidiaries with profit and loss transfer agreements. Thereof, 60 (PY 70) were employees
and 4 (VJ 4) workers. Staff costs of subsidiaries with profit and loss transfer agreements are reported under
personnel expenses and identified separately.
2.Loans to members of the Supervisory Board amounted to TEUR 178 (PY TEUR 398) as at 31 December
2014. Repayments to these loans totalling TEUR 220 (PY TEUR 65) were made during the 2014 financial year.
3.Expenses for severance payments and pensions in the reporting year for directors and senior managers
amounted to TEUR 4,630 (PY TEUR 2,563) and TEUR 3,895 (PY TEUR 3,427) for other employees.
4.There were no material or off-market transactions with related parties pursuant to § 237(8b) UGB.
23
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MANAGEMENT REPORT
CONSOLIDATED FINANCIAL STATEMENTS
FOR 2014, Raiffeisenverband Salzburg eGen
BUSINESS PERFORMANCE
AND ECONOMIC ENVIRONMENT
The financial year just ended was a successful
one for all segments and went largely according
to plan. Business performance was very satisfying,
associated with a risk situation in line with the general economic environment. The result for the
year 2014 showed a continuation of the positive
development of the past years. The development
at Raiffeisenverband Salzburg eGen (hereinafter
called Raiffeisenverband Salzburg) played a major
role in this trend, as it clearly dominated the consolidated financial statements in its position as the
parent company.
NOTES TO THE FINANCIAL
AND EARNINGS POSITIONS
Group structure
As of 1 January 2014, in the course of the new
Basel III regulations, the Credit Institution Group
was adjusted according to § 30 BWG and the existing Group reorganized correspondingly. In the
course of the Group´s enlargement the corporate
law consolidation scope was aligned with the supervisory scope of consolidation for the sake of
convenience. During the reorganisation, harmonising the corporate law and the supervisory basis
of consolidation was of an importance. As the previous year‘s figures were shown according to the
2014 Annual Report
24
valid legal conditions under Basel II at that time,
they are only comparable to a limited extent. The
Raiffeisenverband Group comprises the parent
company Raiffeisenverband Salzburg eGen and 19
subsidiaries, thereof 18 financial institutions pursuant to Art. 4 para. 1 Z 26 CRR and a provider of ancilliary services pursuant to Art. 4 para. 1 Z 18 CRR.
These companies are included in the consolidated
financial statement according to the full consolidation method. The investment in the non-profit housing association Heimat Österreich was accounted
for using the equity method. The close of the sale
of all shares in Salzburg München Bank AG to Airbus Group took place in July 2014. The Salzburg
München Bank AG has thus been deconsolidated
with effect from the Closing Date. Investments and
shares in affiliated companies that are neither fully
consolidated nor included in the consolidated financial statements with measurement according
to the equity method were reported at the carrying
amount from the individual financial statements.
Balance sheet development
As of 31 December 2014 Raiffeisenverband
Salzburg‘s consolidated total assets amounted to
EUR 6.2 billion. The Group‘s total assets are only
EUR 19.7 million larger than the total assets of the
Group’s parent individual financial statements.
Cash in hand decreased by EUR 4.8 million to EUR
17.8 million. The item treasury bills and other bills
amounted to EUR 588.2 million at year-end 2014
and increased slightly by about EUR 8.0 million.
Loans and advances to banks decreased by EUR
91.6 million to EUR 1,613.1 million at year-end
2014. Loans and advances to customers decreased by 10.5%, from EUR 3,238.3 million to EUR
2,899.5 million. Debt securities, including fixedincome securities, decreased according to plan by
25.1% due to repayments and amounted to EUR
384.1 million. The balance sheet item shares and
other variable-yield securities increased by EUR
37.5 million, due to the newly consolidated entities, and amounted to EUR 40.5 million. Participating interests and shares in affiliated undertakings
amounted to EUR 348.1 million. In total this means
an increase of the portfolio of EUR 41.0 million.
Tangible and intangible assets held as fixed assets
with a book value of EUR 197.7 million at year-end
2014, increased by EUR 23.6 million in comparison
to previous year. Other assets amounted to EUR
100.2 million. The accrued income was EUR 1.7
million and decreased by EUR 0.4 million.
Liabilities to credit institutions amounted to EUR
2.3 billion at year-end 2014 and decreased by
EUR 132.6 million in comparison to previous year.
Liabilities to customers (non-banks) decreased by
EUR 333.0 million or 13.4% to EUR 2.1 billion at
year-end 2014. The main reason for this development was a decrease in time deposits. Securitised
liabilities decreased by EUR 71.7 million to EUR
1.1 billion. Other liabilities decreased by EUR 0.2
million to EUR 73.4 million. Provisions amounted
to EUR 68.4 million. Deferred income amounted to
EUR 4.1million and decreased by EUR 0.1 million
in comparison to previous year. Supplementary
capital (Tier II), in accordance with Chapter 4 of
Title I of Part 2 of Regulation (EU) No 575/2013, decreased by EUR 7.4 to EUR 41.4 million, whereas
the definition of supplementary capital was extended in comparison to previous year. Equity grew
by EUR 33.1 million to EUR 492.8 million and was
composed of subscribed capital, capital reserves,
retained earnings, liability reserve, net profit for the
year and the fund for general banking risks.
Income statement
Raiffeisenverband Salzburg dominated the
Group´s income statement as well. With the inclusion of 18 financial institutions and one provider of
ancillary services in the Group and the deconsolidation of Salzburg München Bank AG, a comparison with previous year´s figures is only possible to
a limited extent. The operating result of the Group
was 3.3% higher than the result shown in the individual financial statement.
Net interest income decreased year-on-year by
EUR 3.3 million, or 5.6%, to EUR 55.5 million. Income from securities and participating interests
grew by EUR 3.5 million to EUR 20.3 million due
to changes in the Group. Net commissions as a
result of the commissions receivable and commissions payable decreased by EUR 4.5 million in
2014 and amounted to EUR 35.1 million. Net profit
on financial operations fell by EUR 0.6 million to
EUR 2.6 million, mainly attributable to decrease
in currency income related to a decline in foreign
currency loans. Other operating income decreased
and amounted to EUR 82.2 million.
Total operating income amounted to EUR 195.6
million in 2014 resulting in a decrease of EUR 17.6
million or 8.3%.The operating expenses decreased
by EUR 10.7 million in comparison to previous year
and amounted to EUR 144.9 million. The operating result as the balance of operating income and
operating expenses decreased by 11.9% or EUR
25
Raiffeisenverband Salzburg
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MANAGEMENT REPORT
6.9 million, resulting in EUR 50.7 million for 2014.
Valuation result was negative in 2014 and amounted to EUR -38.5 million. In particular, two special
items affected the earnings performance in financial year 2014. To fulfil the non-profit status of Heimat Österreich in the consolidated balance sheet,
the shareholding was written down by EUR 13.0
million. Thereof EUR 10.3 was booked affecting net
income. The second special item resulted from the
devaluation of the profit participating loans to companies in the bioenergy field amounting to EUR 8.4
million, issued by a company newly included in the
Group.
Profit on ordinary activities decreased in 2014, due
to these special items, and amounted to EUR 12.2
million. In addition to Raiffeisenverband Salzburg,
which dominates the Group, the following four
CRR-Financial Institutions are seen as significant
for the Group. The operation of Agroconsult Austria
Gesellschaft m.b.H. mainly includes the shareholder activity towards RZB AG. The Industriebeteiligungs-GmbH has invested in non-profit residentialand housing projects. Shares in companies in the
tourism and energy sector are held by Fremdenverkehrs GmbH as well as by Unternehmensbeteiligung GmbH. The Heimat Österreich gemeinnützige Wohnungs- und Siedlungsgesellschaft m.b.H,
in which Raiffeisenverband Salzburg holds an at
equity participation, develops residential projects.
the capital requirements pursuant to Basel III, which
came into effect at the beginning of 2014. The total
core capital (CET1) amounted to EUR 462.6 million
at the end of 2014 (previous year EUR 441.2 million) and the additional core capital amounted to
EUR 6.4 million (previous year EUR 10.0 million).
Hence, the tier 1 capital amounted to EUR 469.0
million and increased by EUR 17.8 million in comparison with previous year. The increase is mainly
attributable to the growth in retained earnings. The
total core capital ratio (CET1) was strong at 11.4%.
Total own funds amounted to EUR 624.3 million
and decreased therefore by EUR 28.5 million,
which resulted from the decline of TIER II-Capital
due to the phase out of grandfathered capital instruments in Basel III that are no longer eligible as
capital. The level of own funds was 15.4% (previous year 15.0%) and was thus above the minimum
legal requirement of 8%.
Development of own funds in million EUR
Total own funds
Total core capital (CET1)
Total own funds ratio
Total core capital ratio (CET1)
+124 Mio. EUR (+25%)
600
500
FINANCIAL PERFORMANCE INDICATORS
26
15.0%
539
500
12.4%
346
7.8%
15.4%
13.7%
12.2%
378
8.3%
390
13%
441
416
11.4%
10.2%
8.6%
15%
463
12.8%
300
2014 Annual Report
624
580
400
Capital resources and profitability
The Group reported capital resources well above
17%
653
615
11%
9%
9.3%
200920102011201220132014
7%
The total own funds increased by 25% since 2009.
The cost-income-ratio (CIR) as a ratio of operating expenses to operating income (excluding
the goods business, auditing and ORG/IT) was
at 62.8% slightly higher than in the previous year.
The return on equity (ROE) before tax, a key figure
showing the relation of profit of ordinary activities
to average equity in 2014, for the year just ended
was 2.6%. This represents a decrease of 6.5 percentage points owed to two special items which
affected the earnings performance.
NON-FINANCIAL PERFORMANCE
INDICATORS
Personnel
On average 1,684 individuals were employed in the
fully consolidated companies in 2014, which corresponds to a decrease of 80 employees compared
with the previous year.
Emphasis is placed on continuous staff training
throughout the Group.
In spring 2014, a workshop was held, led by the
Salzburg Company Employer Branding Consulting, managed by two technical college professors,
along with employees of Raiffeisenverband Salzburg. The result of it, as well as the results of the recent employee survey, led to the gold award as the
best employer 2014 (“Beste Arbeitgeber 2014”).
This positive outcome and the acquired seal of
quality confirm the attractiveness of Raiffeisenverband Salzburg as an employer.
Environment
Active climate protection and environmental responsibility are just as much a part of the Raiffeisen
Salzburg philosophy as having branches throughout the city and state of Salzburg.
Raiffeisenverband Salzburg is optimizing the use
of energy at its places of business and also encourages employees to get involved with environmental issues.This employee programme aims at
increasing environmental awareness and helping
employees contribute to the reduction of CO2 by
offering them incentives for participating. For example, employees of Raiffeisenverband Salzburg
primarily use public transport for business trips and
Raiffeisenverband Salzburg provides bicycles to be
used by employees for business trips within the city
of Salzburg.
Sustainability, which is one of the core values of
Raiffeisenverband Salzburg, was an important
aspect in the development and construction of a
new Lagerhaus store in Tamsweg.
RISK MANAGEMENT
The risk strategy provides a basis for the risk culture of the group of Raiffeisenverband Salzburg.
The strategy is revised continuously and provided
in a concerted fashion for all identified risk types.
The risk strategy is supplemented by the risk manual which demonstrates detailed description of
procedural and methodical rules. The risk manual
outlines in particular the risk measurement me-
27
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MANAGEMENT REPORT
thods for group’s relevant risk types. Furthermore,
the operational and organizational structure in risk
management is demonstrated. The group follows a
conservative risk policy. This can be recognized by
low volumes in the trading book, conservative managing of the loan and share-holding positions as
well as by the small market price risk. Derivative financial instruments are generally only intended for
hedging purposes within the predetermined limits
of the strategy. The hedge strategy is documented in the application of the valuation guidelines for
hedge accounting.
Risk management organisation
Risk management is accountable for the decentralised organisational structure of the group. In
general, the overall responsibility for each risk type
is attributed to a responsible manager. This overall
responsibility is independent of organisational units
which have the possibility to take such risks. To
avoid conflicts of interest, the organisational separation of front- and back-office units is ensured up
to senior management level.
To detect any undesirable development in time
and make appropriate decisions, the results of the
ongoing risk monitoring are included in the risk reporting. In addition to daily risk reports, a central
element of the reporting system is the monthly risk
report. This monthly risk report demonstrates the
risk bearing capacity as well as the risks and limits
of the control units.
Risk bearing capacity
In addition to regulatory requirements and as part
of the Group‘s overall bank management, risks are
2014 Annual Report
28
compared to both, an economic (intrinsic) as well
as a going-concern risk coverage potential (going
concern basis).
All quantifiable risk types are limited in alignment
with the risk strategy. This limitation takes into
account the economic perspective (value-at-risk
confidence level of 99.9%) of each control unit.
Therefore, the going-concern perspective (valueat-risk confidence level of 95%) and the regulatory
requirements are strict constraints.
Using ongoing monitoring in connection with the
risk reporting it is assured that the actually incurred
risks do not exceed the predetermined limit. Consequently, it is ensured that the group can bear the
incurred risks at all times. An integrated stress test,
related to the P&L developments and the effects
on the core capital quota, complements the risk
bearing capacity analytics.
With risk capital not allocated in full, average risk
utilization in 2014 was 85.3%; the theoretical maximum actual risk was thus well below the allowable
limits and the defined risk coverage potential. Nonquantifiable risks and other risks are subject to an
additional buffer on the quantifiable risks.
Material risk types
The Group defines risk as an unfavourable future
development, which can adversely affect the financial, earning and liquidity position of the bank.
In line with the risk strategy it is distinguished between default, investment, market, operational, liquidity and other risks.
Proportional split of the Group‘s total indentified risk types
per 31.12.2014:
4.8%
4.8%
6.5%
5.3%
46.6%
4.9%
0.9%
3.2%
1.4%
21.6%
Credit risk
Investment risk
Currency risk
Credit Spread risk
Market risk
Liquidity risk
Operational risk
Real estate risk
Macroeconomic risk
Other risk
Default risk
Default risk is the primary risk factor and comprises
credit risk, counterparty, issuer and country risk. Investment risk is defined within the group as a separate risk type. Credit risk is classified according to
the relevant product groups, whereat credits are assigned to classical credit risk, derivatives to counterparty risk and securities to issuer risk. Another
risk classification, included in the risk bearing ability
calculation, is the currency- and repayment vehicle
risk. The parent company follows a restrictive new
lending policy and aims to reduce further the already low ratio of 10.0% of the customer lending
volume. The group system and procedures assure
that all material default risks are identified early and
that they are registered, presented, aggregated,
scheduled, controlled, limited and monitored.
Investment risk
The investment risk is defined as potential losses
arising from provision of equity capital to associated companies. Generally, the parent company
does not aim for further investment portfolio expansion. Attributable to the group’s corporate policy,
the group considers itself as a sustainable and a
strategic investor. The focus is on integration into
the Raiffeisen sector in Austria, including its strategic development, as well as selected investments
in regional tourism infrastructure projects.
Market risk
Market risks denote potential losses from adverse changes in market value of positions due to
changes in interest rates (interest rate risk), foreign
exchange rates, (currency risk), as well as equity
prices, indices and fund prices (shares/fond risk).In
the monthly ALM-Committee Meeting all executive
directors are represented.
This committee has ultimate responsibility for all market risks and determines the framework for the management of strategic assets and liability positions.
Operational risk
Operational risks reflect the risk of direct or indirect losses resulting from inadequate or failed internal infrastructure, internal processes and from
employees or external events. This definition of
operational risk includes legal risk but not reputation risk, strategic risk and business risk. The risk
identification and assessment is a basis for the definition and evaluation of essential controls, as part
of an effective and efficient internal control. Thus,
regarding the operational risks, risk assessment,
29
Raiffeisenverband Salzburg
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MANAGEMENT REPORT
recording of claims and complaints and business
process analysis are of particular importance.
Liquidity risk
The group divides the liquidity risk essentially into
operative (insolvency risk) and structural liquidity
risk (refinancing risk or liquidity maturity transformation risk). The liquidity risk management of the
group aims generally at avoiding a concentration
on a refinancing with very short-term maturities. As
a regional universal bank, Raiffeisenverband Salzburg draws its liquidity primarily from customer deposits and is therefore only secondarily dependent
on money and capital markets. The main objective
is to secure solvency and refinancing capacity at all
times. This applies both to a normal case as well as
to defined stress scenarios. The Group´s liquidity
risk management focuses primarily on the operational liquidity risk, which is adequately bounded by
numerous measures. The key control parameter for
the operational liquidity risk is the liquidity cushion.
In order to ensure sufficient liquidity coverage potentials, a large portfolio of liquid securities is held
available as a liquidity cushion, in the event of a
short-term liquidity crisis.
Other risks
Included in other risks are, amongst others, the
real estate risk and the macroeconomic risk. The
real estate risk accounts for the fluctuations in the
market value of real estate for own use, included
in the financial statement. The macroeconomic
risk results from a reduced profitability (revenues,
expenses, risks) due to deterioration in the overall
economic situation and therefore possibly combined with an increase in the risk parameters. Fur-
2014 Annual Report
30
thermore, the objective is to have a sufficient risk
coverage volume, also after such a period, without
massive interventions and measures. Other not
quantifiable risks, such as reputation-, business-,
concentration-, strategic- , sector- and warehousing risks as well as residual risks of an excessive
indebtedness are accounted for by adding an appropriate premium to the quantifiable risks. The
measurement options for these risks are in a continuous development process. Furthermore, the
other risks are subject to qualitative controlling.
BRANCHES
The Group operates 15 branches with a focus on
the city of Salzburg (11), on the Zell am See area
(3) and Oberndorf (1). At 31.12.2014 the branch
Linzer Gasse was closed. Thus the customers
were removed to the conveniently situated branch
Schallmoos. The average number of employees at
these 15 branches was 139 in 2014.
RESEARCH AND DEVELOPMENT
Due to the nature of the industry there is no information to be disclosed about research and development.
EVENTS AFTER THE BALANCE SHEET DATE
Significant events with a material impact on the net
assets, financial positions and results of operations
did not occur after the balance sheet date 2014.
OUTLOOK FOR 2015
In 2015 we still expect lowest interest rates. Based
on the adopted measures in January, the ECB will
pump massive additional liquidity in the market
and keep interest rates low. In addition, currently
existing uncertainties – geopolitically as well as
economically – will continue to remain in 2015. The
Austrian economy will grow only moderately and a
further increase in unemployment is expected.
Based on a solid company result of 2014, Raiffeisenverband Salzburg – as the parent company
– together with the independent Raiffeisen banks
in Salzburg will further strengthen and expand its
market leadership in all areas of the banking business in the state of Salzburg. In the light of the current economic outlook and the general uncertainty
in the financial sector, the significance of Raiffeisenverband Salzburg as a regional, reliable and
sustainable operating partner will be strengthened.
The market development focus will remain on professional and comprehensive solutions to corporate, business and private customers.The support
to the Raiffeisen banks in relation to customer care
will be further intensified. In the field of project and
infrastructure financing, a selective regional growth
will be aimed for in 2015, in which we develop sustainable solutions together with our customers.
The Group of Raiffeisenverband Salzburg will be
affected by the development of the industries in
which the Group‘s subsidiary companies operate.
Via Agroconsult Austria Gesellschaft mbH, the
Group holds an indirect participation in RZB AG.
Due to the revised dividend policy of RZB AG,
lower dividend payments from these investments
are expected in the future. This will have an impact
on the Group‘s results.
In mid-January 2015 the Swiss National Bank (SNB)
suspended the protection of the EUR-CHF minimum exchange rate. The Raiffeisenverband Salzburg has been pursuing a very restrictive approach
regarding the granting of foreign currency loans.
This led to a situation in which the ratio of foreign
currency loans to total lending volume steadily decreased in recent years (4.5% by 31.12.2014). Thus
the impact of the decision by the SNB to the customer portfolio is very low. Particularly in these uncertain times, Raiffeisen will continue the path of solidity and customer proximity. Deposit and lending
business – supplemented by target group oriented
services – continue to be our stable business base.
The investment plan of the Group of Raiffeisenverband Salzburg for 2015 envisages a total investment of approximately EUR 21.1 million. Thereof,
EUR 15.9 million relates to land and buildings,
EUR 2.2 million to IT equipment including hard-and
software as well as EUR 3 million to operating and
business equipment, vehicle fleet and machinery.
In addition, a sales and product offensive was
launched to secure the future. Overall, corporate
planning provides for 2015 – not least because
of the additional regulatory burdens (various fund
allocations) – a slightly weaker, but still very solid
operating result and a stable profit from ordinary
activities. In light of the current economic outlook
Raiffeisenverband Salzburg will continue to expand
its position in 2015 as the leading regional bank in
the state of Salzburg.
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Raiffeisenverband Salzburg
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AUDITOR‘S REPORT
The audit of the attached consolidated financial
statements as of 31 December 2014 and the management report for the group was performed by
Österreichischer Raiffeisenverband. The audit of
the consolidated financial statements and the management report for the group did not give rise to
any objections. The consolidated financial statements and the accounting system are in accordance with legal requirements. The consolidated
financial statements present fairly, in all respects,
2014 Annual Report
32
the financial position, the results of its operations
and cash flow in accordance with Austrian generally accepted accounting principles. The management report for the group corresponds with the
consolidated financial statements.
The consolidated financial statements in its full
length can be looked up in the commercial register
at the Regional Court of Salzburg. The Statements
will be published in the „Raiffeisen Zeitung“.
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EXECUTIVE BODIES
Management Board
Supervisory Board
Günther Reibersdorfer
General Manager
Peter Burgschwaiger
Chairman
Andreas Derndorfer
Corporate Management
Thomas Winter
Deputy Chairman
Heinz Konrad
Corporate Banking
Friedrich Geisler
Renate Hofbauer
Blasius Reschreiter
Johann Riedl
Thomas Nussbaumer
Corporate Center
Erich Ortner
Private and Retail Banking
Delegates of the Employees’ Committee
Executive Board
Bernhard Befurt
Hubert Dorfer
Johannes Huber
Sebastian Schönbuchner
Chairman
State Commissioner
Richard Hacksteiner
Deputy Chairman
Bernhard Mazegger
Wolfgang Ebner
Felix Berger
Alois Lüftenegger
Anton Ronacher
Herbert Steger
Herbert Sturm
Erich Zauner
Hans Schinwald retired in 2014 and was part
of the Management Board until 28.02.2014.
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Raiffeisenverband Salzburg
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PUBLICATION DETAILS
Media owner, publisher
Raiffeisen Medienverein Salzburg, 5020 Salzburg
Editorial team
Corporate Management, 5020 Salzburg, Schwarzstraße 13 – 15, Tel.: +43 662 8886-0, www.rvs.at
Concept/design
Raiffeisenverband Salzburg eGen, Thomas A. Laimer
Publishing place
5020 Salzburg, Schwarzstraße 13 – 15
Note
The forecasts, plans and forward-looking statements contained in this annual report are based on the state of
knowledge and assessments of Raiffeisenverband Salzburg at the time of its preparation. Like all statements
about the future, they are subject to known and unknown risks, as well as uncertainties that could cause
actual results to differ materially from those expressed or implied by such statements. No guarantee can be
provided for the accuracy of forecasts, target values or forward-looking statements. This annual report has
been prepared and the data checked with the greatest possible care. Nonetheless, rounding, transmission,
typesetting and printing errors cannot be ruled out. In the summing up of rounded amounts and percentages,
rounding-off differences may occur. This annual report was prepared in German. The annual report in English
is a translation of the original German report. The only authentic version is the German version.
2014 Annual Report
34
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LOCATIONS
Raiffeisenverband Salzburg eGen
Raiffeisen Salzburg Vorsorge GmbH
5020 Salzburg, Schwarzstraße 13 – 15
Tel.:+43 662 8886-0
Fax:+43 662 8886-10009
with 12 branches in the city of Salzburg and
branches in Oberndorf, Zell am See,
Thumersbach and Schüttdorf.
65 Raiffeisenbanken with 55 branches
www.salzburg.raiffeisen.at
www.internetwertpapiere.at
5020 Salzburg, Schwarzstraße 13 – 15
Tel.:+43 662 8886-14308
Fax:+43 662 8886-14379
www.raiffeisen-salzburg-vorsorge.at
Raiffeisen Immobilien Salzburg eGen
5020 Salzburg, Schwarzstraße 9
Tel.:+43 662 8886-14222
Fax:+43 662 8886-14229
www.raiffeisen-immobilien-salzburg.at
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Raiffeisenverband Salzburg