2015 Annual Report Raiffeisenverband Salzburg

2015 Annual Report
Raiffeisenverband Salzburg
KEY FIGURES OF THE GROUP
2015 Annual Report
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KEY FIGURES OF THE GROUP
in TEUR
31.12.2013
31.12.2014
31.12.2015
Total assets
6,714,780
6,191,019
6,286,242
95,223
1.5%
Loans and advances to customers
3,238,287
2,899,545
3,023,071
123,526
4.3%
Liabilities to customers (excl. repo transactions)
2,482,481
2,149,490
2,331,421
181,931
8.5%
441,248
462,569
469,873
7,304
1.6%
10.2%
11.4%
11.4%
-0.1%
652,883
624,343
606,011
-18,332
Total own funds ratio (total risk)
15.0%
15.4%
14.6%
-0.8%
Operating result
57,598
50,726
37,137
-13,589
-26.8%
Profit on ordinary activities
40,112
12,217
19,158
6.941
56.8%
Cost-Income-Ratio
61.6%
62.8%
72.6%
9.8%
9.1%
2.6%
3.9%
1.3%
Total core capital (CET 1)
Total core capital ratio (CET 1)
Total own funds
(adjusted for warehousing segment)
Return on Equity (RoE, before tax)
3
Change
-2.9%
Raiffeisenverband Salzburg
CONSOLIDATED FIGURES 2015
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CONSOLIDATED BALANCE SHEET
ASSETS (TEUR)
1. Cash in hand, balances with central banks
and post office banks
31.12.2015
31.12.2014
47,700
17,805
574,826
574,826
0
588,186
588,186
0
3. Loans and advances to credit institutions
a)Repayable on demand
b)Other loans and advances
1,678,540
649,783
1,028,757
1,613,120
717,543
895,577
4. Loans and advances to customers
3,023,071
2,899,545
292,791
20,192
272,599
0
384,113
20,181
363,932
0
30,543
40,497
314,669
312,297
1,068
3,460
35,978
0
35,810
0
6,679
0
9,231
0
197,572
188,510
184,261
173,607
0
0
0
0
82,620
100,209
0
0
1,254
1,695
6,286,242
6,191,019
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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Raiffeisenverband Salzburg
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CONSOLIDATED BALANCE SHEET
LIABILITIES (TEUR)
31.12.2015
31.12.2014
1. Liabilities to credit institutions
a)Repayable on demand
b)With agreed maturity dates or periods of notice
2,260,382
1,102,298
1,158,084
2,290,666
1,004,746
1,285,920
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
2,331,421
800,605
2,149,490
791,187
203,050
597,555
1,530,815
152,516
638,671
1,358,303
1,280,979
249,837
1,181,337
176,966
3. Securitised liabilities
a)Debt securities issued
b)Other securitised liabilities
1,023,860
0
1,023,860
1,070,761
0
1,070,761
49,508
73,390
3,650
4,138
6.Provisions
a)Provision for severance payments
b)Provision for pensions
c)Provision for taxation
d) Other provisions
72,340
24,791
24,993
5,030
17,526
68,407
23,058
23,823
2,371
19,155
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
39,850
41,350
8. Additional core capital pursuant to part 2 titel I capitel 3
of regulation (EU) 575/2013
0
0
8a. Mandatory convertible bonds pursuant to par. 26 BWG
0
0
8b.Instruments without voting rights pursuant to par. 26a BWG
0
0
73
73
54,396
54,396
1,344
1,344
0
1,344
1,344
0
357,606
0
68,104
289,502
345,191
0
67,823
277,368
72,058
72,058
3,000
3,000
6,286,242
6,191,019
4. Other liabilities
5. Accruals and deferred income
9. Minority Interests
10. Subscribed capital
11. Capital reserves
a)Committed
b)Uncommitted
12. Retained earnings
a)Legal reserve
b)Statutory reserve
c)Other reserves
13. Liability reserve pursuant to Article 23 para. 6 BWG
14. Consolidated net profit for the year
Total liabilities
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AS OF 31 DECEMBER 2015
OFF-BALANCE-SHEET-ITEMS (TEUR)
31.12.2015
31.12.2014
697,379
813,173
591,594
582,750
0
576,898
0
566,995
647,592
783,778
0
0
63,708
57,903
606,011
624,343
43,392
49,388
4,131,669
4,059,082
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 regulation (EU) 575/2013
11.37%
11.40%
Capital requirement pursuant to Article 92 para. 1
nos. b of regulation (EU) 575/2013
11.37%
11.55%
Capital requirement pursuant to Article 92 para. 1
nos. c of regulation (EU) 575/2013
14.67%
15.38%
722,875
649,659
6. Foreign liabilities
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CONSOLIDATED PROFIT AND LOSS ACCOUNT
TEUR
2015
2014
1. Interest receivable and similar income
showing separately: From fixed-income securities
99,535
27,959
111,142
31,280
-43,833
-55,605
55,702
55,537
3,102
214
967
1,442
0
479
20,269
1
175
17,578
0
2,515
4. Commissions receivable
42,761
42,101
5. Commissions payable
-7,350
-7,006
3,476
2,577
85,519
82,165
183,210
195,644
-131,972
-95,634
-132,713
-96,929
-68,591
-68,722
-19,046
-879
-3,186
-1,170
-18,776
-906
-3,017
-2,163
-2,763
-36,338
-3,345
-35,784
-11,070
-10,964
-3,031
-1,241
-146,074
-144,918
37,137
50,726
2. Interest payable and similar expenses
I. NET INTEREST INCOME
3.
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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TEUR
2015
2014
-40,426
-20,267
22,447
-18,242
0
0
19,158
12,217
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
18. Tax on profit or loss
-4,298
-185
19. Other taxes not reported under item 18
-5,273
-5,223
9,586
6,809
0
0
-6,586
-3,809
0
0
3,000
3,000
0
0
3,000
3,000
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
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
EXCERPT FROM THE NOTES TO THE CONSOLIDATED ACCOUNTS
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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 time of initial inclusion. The
initial consolidation took place on the effective date
stated in table 2.
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.
b) At-Equity consolidation
At-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 of Heimat Österreich gemeinnützige Wohnungs- und Siedlungsgesellschaft m.b.H. took place on the effective date of
December 31st, 2000, the initial inclusion of Bergbahnen Aktiengesellschaft Wagrain on June 30th,
2015.
Consolidation according to the at-equity method
occurred based on the last available financial
statement. Any variations in valuation methods of
the parent company were not adjusted.
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C.SCOPE OF CONSOLIDATION
1. Change of the scope of consolidation
In 2015 scope of fully consolidated companies
has not changed in comparision to 2014. Amongst
companies subject to at-equity consolidation Bergbahnen Aktiengesellschaft Wagrain was added to
the scope of at-equity consolidation as per June
30th, 2015.
2. Disclosures on investments
a) Fully consolidated companies
The companies included in the Group are as follows:
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
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 qualitative indicators
(one-time effect, sustainability). Companies, which
are not consolidated at equity due to immateriality,
are shown in the Group‘s list of shareholdings.Resulting from the materiality calculation, as per June
30th, 2015, Bergbahnen Aktiengesellschaft Wagrain
was added to the at-equity consolidated companies, which now comprises of: income.
Share of capital
direct
indirect
Name and registered office
Heimat Österreich, Salzburg
Financial statements dated
25.00%
Bergbahnen Aktiengesellschaft Wagrain
31.12.2014
2.00%
c) Other companies
These are subsidiaries not included in the consolidated financial statements due to their status of
41.56%
30.06.2015
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%
436
10
12/14
München Salzburg Besitzgesellschaft mbH,
München
100.00%
38
-342
12/14
Mittelstandsbeteiligungs GmbH,
Salzburg
100.00%
8,679
11,118
12/14
129
88
12/14
1,724
33
12/14
Value-Holding Fondsvermittlung GmbH,
München
Raiffeisenverband Salzburg Anteils- und
Beteiligungsverwaltung GmbH, Salzburg
67.5%
100.00%
Equity in
TEUR
13
Operating
result in TEUR
Balance
sheet
Raiffeisenverband Salzburg
n n n EXCERPT FROM THE NOTES TO THE CONSOLIDATED ACCOUNTS
D. ACCOUNTING AND
VALUATION PRINCIPLES
General principles
The consolidated financial statements were prepared according to the regulations of the Austrian Banking Act (BWG), the EU regulation No.
575/2013 (CRR – Capital Requirements Regualtion)
and the Corporate Code (UGB in its applicable
version issued prior to the Accounting Amendment
Law 2014 (Rechnungslegungsänderungsgesetz
2014, BGBL I 2015/22). The consolidated financial
statements were prepared under consideration of
the principles of proper accounting and the general requirement to present a true and fair view
of the company‘s assets as well as of its financial
and earnings situation. The consolidated financial
statements were compiled according to the principle of completeness and 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.
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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 write-downs
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. Securities used as cover
funds for ward money 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 1,850) 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 permanent 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%, 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 agri-
cultural machinery the identity pricing method was
applied, 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. 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.
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. 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 2.00% (PY 2.25%) was applied.
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n n n EXCERPT FROM THE NOTES TO THE CONSOLIDATED ACCOUNTS
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 (60 – born until 01.12.1963 and
65 – born from 02.06.1968) and 65 years for men
and an acturial interest rate of 2.00% (PY 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.
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 acturial interest rate of 2.00%
(PY 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) are arbitrage activities. Products
for purchase and for disposal are equal in their
terms. The differences between the value received
2015 Annual Report
16
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. No macro or cashflow hedges were used. The following interest rate
swaps were 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)
• 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 and
• 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
250,483
234,228
more than 3 months to 1 year
246,152
205,797
more than 1 to 5 years
528,745
454,134
3,377
1,418
more than 5 years
Receivables from non-banks, not available on demand
TEUR
TEUR (PY)
up to 3 months
197,506
248,680
more than 3 months to 1 year
380,430
256,353
more than 1 to 5 years
978,872
746,602
1,057,696
898,962
more than 5 years
Payables to banks, not available on demand
TEUR
TEUR (PY)
up to 3 months
482,955
415,708
more than 3 months to 1 year
443,180
608,937
more than 1 to 5 years
222,200
236,662
9,750
24,614
more than 5 years
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n n n EXCERPT FROM THE NOTES TO THE CONSOLIDATED ACCOUNTS
Payables to non-banks incl. savings deposits, not available on demand
TEUR
TEUR (PY)
up to 3 months
228,119
306,386
more than 3 months to 1 year
514,384
460,819
96,179
46,534
8,710
1,898
more than 1 to 5 years
more than 5 years
Receivables from customers include notes receivable for TEUR 1,048 (PY TEUR 903).
2. Securities
The book value (including accrued interest) of the debt securities including fixed-income securities admitted
to trading amounts to TEUR 292,791 (PY TEUR 384,113 ). Thereof securities with a nominal value of TEUR
288,875 (PY TEUR 378,775) 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
1,701
2,027
0
1
-632
-1,354
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 2015
Treasury bills
Book value 2015
Market value 2014
Book value 2014
21,919
22,050
10,010
10,025
Loans and advances to banks
0
0
0
0
Loans and advances to customers
0
0
0
0
85,558
87,462
73,601
75,213
107,477
109,512
83,611
85,238
Debt securities /
fixed-incomes securities
Total
The bonds and securities in the books come from issuers with good creditworthiness. Therefore, a full repayment according to schedule is anticipated.
2015 Annual Report
18
Subordinated liabilities pursuant to § 64 (1) 5 BWG
The securitised subordinated liabilities which amounted to more than 10% of all subordinated liabilities on
the 31.12.2015 are:
• 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
•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.
•Callable variable Salzburger Nachranganleihe 2009-2021/33, TEUR 4,500 (PY TEUR 4,500), due on
21.12.2016, interest rate 3.95% fixed until 20.12.2016, an interest rate of 125 basis points above 3-month EURIBOR will follow, settlement option at rate 100 on 21.12.2016.
In addition, there is one securitised subordinated bond with an issuing volume of total TEUR 600 (due in
2022), which does not exceed 10% of the sum of all subordinated liabilities.
Ward Money
The ward money at the reporting date amounted to TEUR 6,533 (PY TEUR 6,480). Gilt-edged securities with
a total nominal value of TEUR 8,350 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 92,656 (PY 83,084).
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.
19
Raiffeisenverband Salzburg
n n n EXCERPT FROM THE NOTES TO THE CONSOLIDATED ACCOUNTS
TEUR
TEUR (PY)
Receivables from goods business
17,701
18,553
Goods in stock
27,799
26,332
Accruals for swaps
5,775
7,932
Other receivables
5,207
8,213
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 17,954 (PY TEUR 16,049).
6. Equity and equity-related liabilities
The untaxed reserves of the parent company totalling TEUR 5,976 (PY TEUR 6,195) were allocated in the
Consolidated Balance Sheet in full to retained earnings. The classification of the core capital and the additional own funds are as follows:
TEUR
TEUR (PY)
Subscribed capital
49,052
48,759
Fund for banking risks
16,756
16,756
321,944
311,567
82,880
87,051
-759
-1,564
469,873
462,569
0
6,400
Core tier 1 capital
469,873
468,969
Additional tier 2 capital
136,230
155,489
-92
-115
606,010
624,343
Retained earnings
Other reserves
Deductions from core tier 1 capital
Common equity tier 1 capital
Additional tier 1 capital
Deductions from additional tier 2 capital
Total own funds
2015 Annual Report
20
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
• Trust deposit for Clearstreambanking Frankfurt
• Trust deposit for options Commerzbank
• Trust deposit for retirement provisions
• Trust deposit for OeKB/CBF
• Trust deposit for derivatives RBI
• Trust deposit for repo business
• Trust deposit for repo-margin
Nom. value
Nom. value
Nom. value
Nom. value
Nom. value
Nom. value
Nom. value
Nom. value
TEUR 10,500
TEUR 1,500
TEUR 1,000
TEUR 8,675
TEUR 1,500
TEUR 85,500
TEUR 94,527
TEUR
73
Assets assigned as security:
Reason of assignment
TEUR
TEUR (PY)
assigned to
Subsidised export loans
36,414
30,074
Austrian Kontrollbank
Global loans
49,926
45,645
European Investment Bank
German state-aided loans
3,238
1,788
Bavarian subsidised loans
22,536
22,555
KFW Banking Group
LFA Bavarian Subsidies Bank
b) Total amount of assets and liabilities in foreign currency:
TEUR
TEUR (PY)
Foreign currency assets
382,818
510,027
Foreign currency liabilities
151,793
174,502
21
Raiffeisenverband Salzburg
n n n EXCERPT FROM THE NOTES TO THE CONSOLIDATED ACCOUNTS
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).
F. NOTES TO THE CONSOLIDATED INCOME STATEMENT
1.Other operating income and expenses consist of the following significant individual items:
TEUR
TEUR (PY)
Total amount operating income
85,519
82,165
- thereof net earnings from goods operations
47,473
45,692
- thereof income from the IT centre
10,190
11,424
TEUR
TEUR (PY)
Total amount operating expenses
3,031
1,241
- thereof allocation to deposit protection and winding-up funds
2,335
0
2.The total amount of income from administrative and agency services are TEUR 9,866 (PY TEUR 10,321).
2015 Annual Report
22
3.The expenses for the auditor amount to TEUR 491 (PY TEUR 477). Breakdown of the auditors fees are as
follows:
TEUR
ÖRV
TEUR (PY)
KPMG
others
384
19
52
Other confirmation services
2
0
Other services
9
395
Audit of financial statements
Total
ÖRV
KPMG
others
399
14
0
5
3
0
5
15
5
20
36
0
34
62
422
50
5
4. Losses realized on the disposal of fixed assets amounted to TEUR 92 (PY TEUR 116).
5.A tax on revenue and profit amounting to TEUR 4.298 (PY TEUR 185) was charged against profit on ordi nary activities.
G. OTHER INFORMATION
1.In the 2015 financial year the average number of staff employed was 1,651 (PY 1,684). Thereof, 1,391 (PY
1,419) were employees and 260 (PY 265) workers. Included in these figures is an average of 66 (PY 64)
persons employed at subsidiaries with profit and loss transfer agreements. Thereof, 62 (PY 60) were em ployees and 4 (VJ 4) workers. Staff costs of subsidiaries with profit and loss transfer agreements are re ported under personnel expenses and charged separately.
2.Loans to members of the Supervisory Board amounted to TEUR 498 (PY TEUR 178) as at 31 December
2015. Repayments to these loans totalling TEUR 42 (PY TEUR 220) were made during the 2015 financial year.
3.Expenses for severance payments and pensions in the reporting year for directors and senior managers
amounted to TEUR 3,574 (PY TEUR 4,630) and TEUR 3,544 (PY TEUR 3,895) for other employees.
4.There were no material or off-market transactions between related parties and Raiffeisenverband Salzburg
eGen pursuant to § 237(8b) and § 266(2b) UGB.
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MANAGEMENT REPORT
CONSOLIDATED FINANCIAL STATEMENTS
FOR 2015, 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 2015 showed a continuation
of the positive development of the past years. The
development at Raiffeisenverband Salzburg eGen
(hereinafter called Raiffeisenverband Salzburg or
RVS) 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
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 nonprofit housing association Heimat Österreich was
accounted for using the equity method.
2015 Annual Report
24
The investment in Bergbahnen Aktiengesellschaft
Wagrain has been added in the reporting year 2015
and is also taken into account at equity. 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 2015 Raiffeisenverband
Salzburg‘s consolidated total assets amounted to
EUR 6.3 billion. The Group‘s total assets are only
EUR 21.6 million larger than the total assets of the
Group’s parent individual financial statements.
Due to a higher cash balance at the Austrian National Bank cash in hand increased from EUR 29.9
million to EUR 47.7 million. The item treasury bills
and other bills amounted to EUR 574.8 million at
year-end 2015 and decreased by about EUR 13.4
million.
Loans and advances to banks increased by EUR
65.4 million to EUR 1,678.5 million at year-end
2015. Loans and advances to customers increased
by 4.3%, from EUR 2,899.5 million to EUR 3,023.1
million.
Debt securities, including fixed-income securities,
decreased according to plan by 23.8% due to repayments and amounted to EUR 292.8 million. The
balance sheet item shares and other variable-yield
securities decreased by EUR 10.0 million to EUR
30.5 million.
Participating interests and shares in affiliated undertakings amounted to EUR 350.6 million. In total
this means an increase of the portfolio of EUR 2.5
million. Tangible and intangible assets, held as
fixed assets with a book value of EUR 204.3 million
at year-end 2015, showed an increase of EUR 6.5
million in comparison to the previous year.
Other assets amounted to EUR 82.6 million. The
accrued income was EUR 1.3 million and decreased by EUR 0.4 million. Liabilities to credit institutions amounted to EUR 2.3 billion at year-end 2015
and decreased by EUR 30.3 million in comparison
to the previous year. Liabilities to customers (nonbanks) increased by EUR 181.9 million or 8.5% to
EUR 2.3 billion at year-end 2015. The main reason
for this development was an increase in term deposits by EUR 68.9 million, of savings deposits by
EUR 9.4 million and of demand deposits by EUR
103.6 million.
Securitised liabilities (incl. subordinated own issues) decreased by EUR 46.9 million to EUR 1.0
billion. Other liabilities decreased by EUR 23.9 million to EUR 49.5 million. Provisions amounted to
EUR 72.3 million. Deferred income amounted to
EUR 3.6 million and decreased by EUR 0.5 million
in comparison to the previous year. Supplementary capital, in accordance with Chapter 4 of Title I
of Part 2 of Regulation (EU) No 575/2013, decreased slightly by EUR 1.5 to EUR 39.9 million. Equity
grew by EUR 12.4 million to EUR 505.2 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. Due to the consolidation
of the dividends of Agroconsult the operating result
of the Group was 14% lower than the result shown
in the individual financial statement.
Net interest income increased slightly year-on-year
by EUR 0.2 million to EUR 55.7 million. Income
from securities and participating interests decreased mainly due to lower distributions from participations by EUR 17.2 million to EUR 3.1 million.
Net commissions as a result of the commissions
receivable and commissions payable increased by
EUR 0.3 million to EUR 35.4 million. Net profit on financial operations grew by EUR 0.9 million to EUR
3.5 million, mainly attributable to an increase in exchange rate profit from foreign currency business.
Other operating income decreased and amounted
to EUR 85.5 million.
Total operating income amounted to EUR 183.2
million in 2015 resulting in a decrease of EUR 12.4
million or 6.4%. The operating expenses increased
by EUR 1.2 million in comparison to the previous
year and amounted to EUR 146.1 million.
The operating result as the balance of operating
income and operating expenses decreased by
26.8% or EUR 13.6 million, resulting in EUR 37.1
million for 2015. The value adjustments in respect
of accounts receivables, securities held as current
assets as well as equity interests and securities
held as fixed assets amounted to EUR 18.0 million,
a decrease of EUR 20.5 million compared to 2014.
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MANAGEMENT REPORT
Profit on ordinary activities increased considerably
in 2015 to EUR 19.2 million, mainly due to the before mentioned improvement of the valuation result.
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. includes the shareholder activity
towards RZB AG. The Industriebeteiligungs-GmbH
has invested in a non-profit residential- and housing company. 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.
and decreased therefore by EUR 18.3 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 14.7% (previous year 15.4%) and was thus above the minimum
legal requirement of 8%.
Development of own funds in million EUR
2010 – 2015: +67 Mio. EUR (+12.4%)
17%
653
600
624
615
580
500
15.0%
539
400
12.2%
378
300
8.3%
390
15%
15.4%
14.7%
13.7%
12.8%
606
13%
463
470
11.4%
11.4%
441
416
10.2%
8.6%
11%
9%
9.3%
7%
201020112012201320142015
FINANCIAL PERFORMANCE INDICATORS
Capital resources and profitability
The Group reported capital resources well above
the capital requirements pursuant to Basel III, which
came into effect at the beginning of 2014. The total
core capital (CET1) amounted to EUR 469.9 million at the end of 2015 (previous year EUR 462.6
million) and the additional core capital amounted
to EUR 0.0 million (previous year EUR 6.4 million).
Hence, the core capital amounted to EUR 469.9
million and increased by EUR 7.3 million in comparison with the 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 606.0 million
2015 Annual Report
26
Total own funds
Total core capital (CET1)
Total own funds ratio
Total core capital ratio (CET1)
The total own funds increased by 12.4% since
2010. The cost-income-ratio (CIR) as a ratio of operating expenses to operating income (excluding
the goods business, auditing and ORG/IT) was at
68.2% 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 2015, for the year just ended was
3.9%. This represents an increase of 1.3 percentage points, owed to the improved profit of ordinary
activity, caused by the discontinuation of one-time
special items in 2014.
NON-FINANCIAL PERFORMANCE INDICATORS
Personnel
On average 1,651 individuals were employed in the
fully consolidated companies in 2015, which corresponds to a decrease of 33 employees compared
with the previous year. Emphasis is placed on continuous staff training throughout the Group.
In 2015, RVS, together with the independent Raiffeisen banks in the state of Salzburg, has founded
the Raiffeisen Salzburg Carreer Center Cooperative (Raiffeisen Salzburg Karrierecenter eGen). The
carreer center supports the member banks of the
Raiffeisen Salzburg Banking Group in the field of
employee management as well as personell development. For interested persons the carreer center
offers employment possibilities within the Raiffeisen sector, beyond a single cooperative region.
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.Sustaina-
bility, which is one of the core values of Raiffeisenverband Salzburg, was an important aspect in the
reconstruction of the Glasenbach branch.
RISK MANAGEMENT
An active risk management is the prerequisite of
a sustainably successful bank and therefore of
central importance for the long-term corporate
development of Raiffeisenverband Salzburg. In
the interests of customers and shareholders Raiffeisenverband Salzburg ensures the security and
rentability of the bank by operating most modern
methods and systems in the fileds of risk management and risk controlling.
Risk policy
The management board determines the strategy
of Raiffeisenverband Salzburg and its group members based on the business policy situation, considering the risk bearing capacity, the staffing and
technical-organisational equipment. It defines the
corporate goals and the requirements to reach
them. The strategy includes all planned developments of all important business activities and is
divided into partial strategies. Before starting with
new business – new products, business types or in
new markets – an analysis of the business-related
risks takes place as part of the product introduction
process.
Risk strategy
The risk strategy provides a basis for the risk culture of the group of Raiffeisenverband Salzburg.
The strategy is revised continuously and provided
27
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MANAGEMENT REPORT
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 methods 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
shareholding 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 all control units.
2015 Annual Report
28
Risk bearing capacity
In addition to regulatory requirements and as part
of the Group‘s overall bank management, risks are
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% – holding
period 1 year) of each control unit. Therefore, the
going-concern perspective (value-at-risk confidence level of 95% at the year end) 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.
Proportional split of the Group‘s total indentified risk types
as per 31.12.2015:
7,0%
0,2%
4,8%
5,6%
48,3%
0,6%
3,7%
0,6%
22,4%
0,8% 5,2% 1,0%
Credit risk
Currency ans payment vehicle risk
Macroeconomic risk
CVA risk
Investment risk
Market risk
Credit Spread risk
Liquidity risk
Operational risk
Real estate risk
Country risk
Other risks
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 total own funds ratio, complements the
risk bearing capacity analytics. The average risk
utilization in 2015 was 89.1% of the allocated risk
limits and 82.0% of the total risk coverage potential
and was thus well below the allowable limits and
the defined risk coverage potential.
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 this risk strategy it is distinguished,
amongst others, between credit, investment, market value, liquidity and operational risks. The most
important risks for Raiffeisenverband Salzburg
are the credit, investment and – due to its cental
bank function – liquidity risk. At RVS the existing
systems and procedures ensure an early identification, quantification, representation, aggregation,
planning, controlling, limitation and monitoring of
the most important risks.
Credit risk
Credit risk is the primary risk factor and comprises
besides credit risk also counterparty and issuer
risk. Credit risk is classified according to the relevant product groups, whereat loans are assigned
to classical credit risk, derivatives to counterparty
risk and securities to issuer risk. A seperate risk
classification, included in the risk bearing ability
calculation, is the currency- and repayment vehicle
risk. RVS follows a restrictive new lending policy and
aims to reduce further the already low ratio of 5.0%
of the customer lending volume. In addition to that
the country risk, macro economic risk and the CVA
(Credit Value Adjustment) risk are all defined as separate risk classes and included in the risk bearing
ability calculation. Country risk defines the danger
connected to loans granted to foreign creditors of
an incomplete or late capital payment agreed upon
due to restrictions in international payments, illiquidity or payment refusal of governmental debtors
or guarantors – independent of their creditworthiness. Macro economic risks results from reduced
earnings (profits, costs, risks) due to economic deterioration. The CVA risk refers to the assessment
of derivatives and represents the risk of potential
market value losses due to higher credit risk fees
for the counterparty – without its default.
Investment risk
The investment risk is defined as a separate risk
type within RVS and applies to potential losses arising from provision of equity capital to associated
companies. Generally, RVS does not aim for further
investment portfolio expansion. Attributable to the
group’s corporate policy, the group considers itself
as a sustainable and 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/fund risk).
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In the 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. Within this committee the
present risk situation is reported and appropriate
gearing measures are determined. RVS intends to
avoid market risks. In this respect, accord. to art. 94
CRR, RVS changed to a small trading book in 2015.
rites and has shown a very high quality at all times.
The group constantly takes measures to supervise
level and quality of the liquidity buffer as well as the
in- and outflow to fulfill the internal Survival Period
as well as the legally required Liquidity Coverage
Ratios (LCR). Both have been fulfilled in 2015 at all
times. Besides this further supervisory measrues
such as Net Stable Funding Ratio (NSFR) and
Asset Encumbrance were ensured.
Credit Spread Risk
Credit spread risk is defined as a separate risk
category and is included in the risk bearing ability calculation. It refers to potential losses due to
changing market prices caused by changes in credit spreads or the spread curve in comparison to
the risk-free rate.
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,
recording of claims and complaints and business
process analysis are of particular importance.
Liquidity risk
The group divides the liquidity risk basically into
operative (insolvency risk) and structural liquidity
risk (refinancing risk or liquidity maturity transformation risk). 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. The Group´s liquidity risk management focuses primarily on the
operational liquidity risk, which is adequately limited and, by overcomplying to legal requirements,
conservatively steered by numerous measures. A
key control parameter for the operational liquidity
risk is the liquidity buffer that ensures a sufficient
survival period during normal business times and
also in times of stress. The buffer consisted in 2015
mainly of Level 1 High Quality Liquid Assets secu-
2015 Annual Report
30
Other risks
The real estate risk accounts for the fluctuations
in the market value of real estate for own use, included in the financial statement. Other not quantifiable risks are accounted for by adding an appropriate premium to the quantifiable risks and are
subject to qualitative controlling. The following risk
types are subsumed by the Group: concentration
risk, money laundering and terror financing risk,
business model risk, excessive debt risk, residual
risk of using credit risk minimizing techniques, securitization risk, systemic risk, reputation risk as
well as business- and strategic risks. The measure-
ment options for these risks are in a continous development process.
BRANCHES
The Group operates 15 registered branches with a
focus on the city of Salzburg (11), on the Zell am See
area (3) and Oberndorf (1). The average number of
employees at these 15 branches was 127 in 2015.
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 2015.
OUTLOOK FOR 2016
Especially in the light of the global uncertainties –
expansion of the bond purchase program of the
ECB until 2017 and geopolitical issues such as the
low oil price that causes additional uncertainty –
the significance of Raiffeisenverband Salzburg as a
regional, reliable and sustainably operating partner
will be strengthened. Based on a solid company
result of 2015, 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. 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 in-
frastructure financing, a selective regional growth
will be aimed for in 2016, 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.
The Account Amendment Law 2014 (Rechnungslegungs-Änderungsgesetz 2014) will be applied
in 2016 for the first time. Especially the changes
in the principles of recognition and measurement
can affect the disclosure of the asset-, finance- and
profit situation in the upcoming business year. A
positive effect can result from the change of the
principles of recognition and measurement for deferred taxes, a negative effect from the introduction of the discounting requirement for long-term
provisions. Furthermore allowances for non default
accounts receivables will be made starting from
2016, whereas, due to provisions accord. to §57(1)
Banking Act already made in previous years, no relevant effects are expected for the valuation result.
The investment plan of the Group of Raiffeisenverband Salzburg for 2016 envisages a total investment of approximately EUR 15.3 million. Thereof,
EUR 9.4 million relates to land and buildings, EUR
2.6 million to IT equipment including hard- and
software as well as EUR 3.3 million to operating
and business equipment, vehicle fleet and machinery. The sales and product offensive, started in
2015, will continue. Due to an expected better evaluation result, both the result from ordinary activities
and net income is expected to increase sharply in
the coming year. In light of the current economic
outlook Raiffeisenverband Salzburg will continue to
expand its position in 2016 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 2015 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,
2015 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
Service Center Bank
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
Wolfgang Ebner
Bernhard Mazegger
Felix Berger
Alois Lüftenegger
Anton Ronacher
Herbert Steger
Herbert Sturm
Erich Zauner
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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, Marketing
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.
2015 Annual Report
34
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RAIFFEISENVERBAND SALZBURG
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 51 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.at
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Raiffeisenverband Salzburg