Annual Report 2010 - Raiffeisenlandesbank Oberösterreich

Transcription

Annual Report 2010
Geschäftsbericht
2010
Creative
Strength
GestaltunGskraft
Expertise
kompetenz
Customer Focus
kundenorientierunG
General Information
Creative Strength
Expertise
Customer Focus
General Information
Annual Report 2010
CONTENTS
GENERAL INFORMATION
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Foreword by Ludwig Scharinger, Chief Executive and Chairman of the Managing Board
Managing board of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft
Foreword by Jakob Auer, Chairman of the Supervisory Board
The Supervisory Board of Raifffeisenlandesbank Oberösterreich
2010 in Retrospect
Social Responsibility
Raiffeisenlandesbank Oberösterreich named “Bank of the Year 2010” Award in Germany
Raiffeisen Economic Forum and Economic Advisory Boards
RAIFFEISENLANDESBANK OBERÖSTERREICH
AKTIENGESELLSCHAFT GROUP
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Group Management Report
40
1. Business Development and Economic Situation
58
2. Modern Risk Management and Dynamic Assessment and Monitoring
58
3. Post-balance-sheet events
59
4. Research and Development
59
5. Prospective Trends
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107
120
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Annual Report 2010
IFRS Consolidated Financial Statements 2010
Income Statement
Consolidated Operating Result
Balance Sheet
Statement of changes in equity
Cash Flow Statement
Notes
The company
The basics of the consolidated accounts
according to IFRS
Accounting policies
Segment Reporting
Notes to the Income Statement
Notes to the Balance Sheet
Risk Report
Other Disclosures
Information Based on Austrian Accounting Practices
Events after the Balance Sheet Date
The Members of the Board of Raiffeisenlandesbank
Oberösterreich Aktiengesellschaft
Audit Certificate
Raiffeisenlandesbank Oberösterreich Aktiengesellschaft
General Information
Contents
RAIFFEISENLANDESBANK OBERÖSTERREICH AKTIENGESELLSCHAFT
134
Management Report of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft
134
1. Business Development and Economic Situation
138
2. Report on Prospective Trends and Risks
140
140 4.
Reporting on the Essential Features of Internal Controlling and
Risk Management Systems in the Context of the Accounting Process
142
2010 Financial Statements of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft
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Balance Sheet as at 31 December 2010
146
Income Statement 2010
148
Notes to the 2010 Financial Statements
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1. Information Concerning the Reporting and Valuation Methods used in the
Balance Sheet and the Income Statement
150
2. Notes to the Balance Sheet
158
3. Notes to the Income Statement
158
4. Other Information
160
Audit Certificates
164
Statement of the Managing Board
165
Report of the Supervisory Board
RAIFFEISEN BANKING GROUP UPPER AUSTRIA
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167
168
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Summarised Report of the IFRS Consolidated
Financial Statements of the Raiffeisenlandesbank Oberösterreich Aktiengesellschaft and the Annual
Financial Statement of the Upper Austrian Raiffeisen Banks
Income Statement
Balance Sheet
Notes
170 Imprint
3
“We have inspirations, and we follow
them up with deeds. In the past, we
have proven our creative strength,
which reaches from local provisioning to assisting our customers beyond their borders.”
Ludwig Scharinger
Chief Executive and Chairman of the Managing Board
Raiffeisenlandesbank Oberösterreich
4
Annual Report 2010
General Information
Foreword
High levels of competence, extraordinary creative strength and unique
customer focus guarantee
stability and ensure success
The year 2010 was defined by a worldwide economic recovery, even if we saw different rates
of growth in various markets. The present results show that Raiffeisenlandesbank Oberösterreich Aktiengesellschaft was able to use its high level of competence, its extraordinary creative strength and its unique customer focus to win benefits for its customers in this improving
economic environment. We understand how to spread a positive attitude, inspire courage in
others and motivate people. We need to work together with our customers, with optimism and
confidence, to continue generating economic growth.
Key Indicators for the Financial Year 2010
Balance sheet total growth mirrors qualitative growth
The balance sheet total for the financial year 2010 increased by 2.3 per cent to EUR 30.0
billion.
No brakes on financing
Investment financing rose by 10 per cent.
Development of the
cost-income ratio (in %)
90 83.4
80
10.3 per cent core capital ratio
High core capital growth with EUR 120 million from the operating results. These are selfgenerated funds, not capital hidden from the stock exchange, not shares sold, not capital
increases from shareholders. A total amount of EUR 1,419 million was activated from hidden
reserves, adding an additional EUR 170 million from accumulated reserves. This raised core
capital to EUR 2.3 billion (+21.4 per cent), yielding a core capital ratio of 10.3 per cent.
50
40.2
40
30
2010
Strong growth in competitiveness and risk-bearing capacity
Raiffeisenlandesbank Oberösterreich is enormously competitive and has great risk-bearing
capacity for its customers due to its low cost-income ratio of 40.2 per cent.
70
60
1985
Growth of customer deposits underscores customer confidence
Customer deposits also developed positively, increasing from EUR 6.1 billion to 6.5 billion
(+7.6 per cent).
Development of the
interest margin (in %)
3.0
Strong growth in operating profit
Operating profit increased to EUR 386.5 million (incl. EUR 120 million from reinvested profits).
2.5 1.95
2.0
1.5
1.0
0.67
0.5
2010
0.0
1985
Low, customer-friendly interest margin
It has always been part of our sustainable strategy to have low interest margins. In 2010, this
was a customer-friendly 0.67 per cent.
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One of the best ratings among Austria’s banks
The latest rating from Moody’s Financial Institute Group underlines these outstanding developments. Rated A1 for long-term creditworthiness, C- for financial strength and P1 for short-term
creditworthiness, Raiffeisenlandesbank Oberösterreich continues to have one of the best ratings among Austria’s banks, with a stable outlook in all rating categories. Moody’s also confirms Raiffeisenlandesbank Oberösterreich’s successful completion of the stress test.
The most secure banking group for 88 per cent of the Upper Austrian population
In 2010, we
welcomed 48,471
new customers.
Raiffeisenlandesbank Oberösterreich, and thereby the Raiffeisen Banks as well, stand for stability and security. According to a Spectra survey, the Raiffeisen Banking Group Upper Austria
is the most secure banking group for 88 per cent of Upper Austrians. All of our dealings and
our entire strategic orientation are focussed on maintaining and expanding this high confidence
among our 930,214 customers. This is mirrored in our high core capital ratio, which guarantees the security of customer deposits. Our customers recommend us to others: we welcomed
48,471 new customers in 2010.
Taking on responsibility, providing security
Raiffeisenlandesbank Oberösterreich doesn not just stand for the security of customer deposits. We also provide security as a reliable partner when it comes to accompanying our
customers through a difficult phase. This reliability was important above all for those 29 companies and their 7,430 employees that were carried through the crisis by Raiffeisenlandesbank
Oberösterreich.
A strong local partner with an international network
As the most important local financier, we bear responsibilities for our state and recognise this in
our 452 banking locations throughout Upper Austria. Our special creative strength also allows
us to assist our customers with successful transactions around the world. Raiffeisen Banking
Group Upper Austria’s strong network, with 15 cooperative agreements and 1,668 correspondent banks, ensures optimal quality in customer support. At the end of 2010, Raiffeisenlandesbank Oberösterreich supported 19,795 Central European businesses expanding into Eastern
Europe, 742 into China and 284 into India.
Close connections to Southern Russia
Exports are again becoming an important pillar of the economy. According to forecasts for 2011,
approximately 58 per cent of Austrian GDP will come from exports. Eastern European countries,
with Russia at the forefront, will become increasingly important business partners with their
dynamic growth markets. The Southern Russian region of Krasnodar, where the 2014 Olympic
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Annual Report 2010
General Information
Foreword
Games will take place in the city of Sochi, is among the most prosperous areas of Russia. In
order to be able to better support our customers in these regions, Raiffeisenlandesbank Oberösterreich is involved in the Krayinvestbank, which is owned by the Krasnodar government.
Domestic economic activity from thermal renovations and revitalisation
To kick-start the domestic economy, Raiffeisenlandesbank Oberösterreich and with it the Upper
Austrian Raiffeisen Banks initiated in 2009 a campaign to revitalise and thermally renovate single
and multi-family homes, as well as to revitalise city centres. In the framework of a special economic programme for Upper Austria, a total of 13,867 houses have undergone or are undergoing
comprehensive energy-related renovations. Add to that 141 city centre revitalisation projects.
If you add up the building renovations and city centre revitalisations, the sum comes out to
approximately EUR 954.5 million. This is an enormous success and an important contribution
to reviving our domestic economy. In 2011, we will continue this special economic programme,
thereby supporting medium-size construction, support services and downstream businesses.
Comprehensive
energy renovations
were completed at
13,867 buildings.
We have high customer shares in Upper Austria
Children (under 14)
Adolescents (15 – 18)
Students
Employees
The 50+ generation
Freelance professions
Small and medium-sized enterprises
Industrial companies
Farmers
12/2010
56.9%
59.9%
61.2%
60.4%
61.8%
59.3%
53.1%
79.8%
89.1%
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Raiffeisenlandesbank Oberösterreich receives “Bank of the Year” Award in Germany
Raiffeisenlandesbank Oberösterreich is a secure and creative partner to businesses in both
Austria and Germany. After Raiffeisenlandesbank Oberösterreich won the “Bank of the Year”
award in 2008, the subsidiary in Southern Germany, with its eight branches, again beat out 35
nominated banks from all around the country to win the award in 2010. The Oskar-Patzelt-Stiftung (foundation) in Berlin gives the “Bank of the Year” award within the framework of the “Großer Preis des Mittelstandes,” a major prize for medium-sized companies. This prize honours
outstanding achievements, commitment and success in the creation and support of healthy
medium-sized business structures. We are particularly happy about the “Bank of the Year”
award because we were nominated and elected by businesses and institutions.
Number One in grant financing
Raiffeisen Banking Group Upper Austria is also the most important contact partner when it
comes to grants for corporations, medium-sized businesses, industry, agricultural enterprise
and housing subsidies for individuals. The Group disbursed the largest amount of grant financing among all Austrian banks. This important role in the grant arena is clearly the product of
expert advising competence with a clear focus on the customer. Every second grant application
from small-, medium- and industrial-sized businesses in Upper Austria is handled by Raiffeisen Banking Group Upper Austria. In 2010, we processed 2,467 grant applications with a total
investment volume of EUR 428 million for our customers. The total cash value of these grants
– meaning savings to our customers through grants – reached EUR 32.8 million.
Exploiting opportunities, creating the future
Raiffeisenlandesbank Oberösterreich is outstandingly well prepared for the challenges of the
future. The improving economic indicators are showing us the direction for 2011: we want to use
our creative strength in a globalising world to exploit opportunities and positively contribute to
our country’s development.
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Annual Report 2010
General Information
Foreword
On behalf of the Managing Board of Raiffeisenlandesbank Oberösterreich, I would like to thank
our customers sincerely for the trust they have placed in us. I assure you that we will continue
in 2011 to live by our time-tested fundamental values – above all our special focus on the customer – and I am convinced that we will continue down a successful path with our customers.
I would also like to thank all of our staff and management, my colleagues on the Management
Board, and Raiffeisenlandesbank Oberösterreich‘s Supervisory Board for their close cooperation and commitment. My thanks also go to the members of the Raiffeisen Economic Forum
of Upper Austria and the members of the Economic Advisory Boards in Vienna and Southern
Germany for their constructive support.
Ludwig Scharinger
of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft
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Managing Board of Raiffeisenlandesbank
Oberösterreich Aktiengesellschaft and
their responsibilities
Ludwig Scharinger
Hans Schilcher
Georg Starzer
Deputy Chief Executive
Member of the Managing
Board
Michaela
Keplinger-Mitterlehner
Board
Markus Vockenhuber
Board
SME support,
Consulting on subsidies
Cash management
Major institutional
customers
Retail banking
Financing management
Correspondent banking
and syndications, international finance
Treasury services
Project & structured
finance
Securities sales
Raiffeisen banks,
Capital market sales
SME/Trust fund loans
Czech Republic market
Securities Services
Groups
Support for Raiffeisen
banks and human
resources
Raiffeisen-IMPULS-Leasing
Gesellschaft m.b.H.
activ factoring AG
Security and
property administration
TSC Telephon Service
Center (Raiffeisenbanken
Service GmbH)
Controlling, organisation
and accounting
RACON Software GmbH
Investment management
Internal auditing
GRZ IT Center Linz GmbH
Assets/liabilities management, Capital markets
trading
Controlling international
finance
Corporate customers
Marketing / sales
Legal office
Raiffeisenlandesbank OÖ
branch in
Southern Germany
PRIVAT BANK AG
Analysis and research
Corporates
REAL-TREUHAND
Management GmbH
KEPLER-Fonds Kapitalanlagegesellschaft m.b.H.
RVM RaiffeisenVersicherungsmakler GmbH
RVD RaiffeisenVersicherungsdienst GmbH
LOGIS IT Service GmbH
Strategic marketing
Economic and
market research
Public relations
and media services
Organisational unit
Subsidiary
Event management
Legal Corporate
Governance
GDL Handels- und
Dienstleistungs GmbH
Reisewelt GmbH
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Annual Report 2010
General Information
Georg Starzer
Michaela
Keplinger-Mitterlehner
Ludwig Scharinger
Hans Schilcher
Ludwig Scharinger
Hans Schilcher
Deputy Chairman of the Managing Board
Michaela Keplinger-Mitterlehner Member of the Managing Board
Georg Starzer
Member of the Managing Board
Markus Vockenhuber
Markus Vockenhuber
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“Expertise, high quality advice, security,
proximity, reliability – these qualities are
the unmistakable brand identifiers for
Raiffeisen Upper Austria.”
Jakob Auer
Chairman of the Supervisory Board
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Annual Report 2010
General Information
We were able to expand on our success in
2010 with continuity and farsightedness
The present balance sheet for 2010 reflects the outstanding work done by Raiffeisenlandesbank
Oberösterreich and the Upper Austrian Raiffeisen Banks. We have taken on challenges and
found solutions for our customers: Our central task is and has been to support our clients with
security and reliability, and to work with them to capitalise upon their opportunities.
Strength in solidarity
It is precisely in turbulent times that we see how important seamless collaboration, tight solidarity and outstanding associative activities are at Raiffeisen in Upper Austria. Open discussions,
shared targets and goals, and a clear implementation strategy give us special strength so that
we can help to shape the future of our country. Where others see problems, we seek and find
solutions.
Trust through competence, security and reliability
Competence, quality advice, security, proximity, reliability – these qualities are the unmistakable
brand identifiers for Raiffeisen Upper Austria, creating the foundation for a close and trusting
relationship with our customers. That is why it is not surprising that we were able to attract more
customers in 2010: 930,078 customers now place their trust in us. This declaration of trust entails a great responsibility, though. We accept this responsibility by taking on new challenges
every day, motivated and focussed on the right things for every single customer.
Success with a targeted and sustainable strategy
I would like to extend my thanks in particular to the customers whose successful projects we
were able to support in the past year. I would especially like to the thank the members of the
Managing Board, led by Chairman Ludwig Scharinger, as well as the members of the Supervisory Board of Raiffeisenlandesbank Oberösterreich. A special thanks also is due to every single
employee, because their commitment is the cornerstone of strong and stable partnerships with
customers.
2011 will certainly be another challenging year. Our targeted and sustainable strategies, our
competence, our motivation and our optimism guarantee that we will be able to meet these
challenges successfully, in Upper Austria and beyond.
Jakob Auer
13
The Supervisory Board of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft
Chairman
Members* Jakob Auer
Klaus Ahammer, MBA (as of 17 May 2010)
Chairman of the Supervisory Board, Member of the
National Assembly
Director of Raiffeisenbank for the Region of Salzkammergut
Deputy Chairman
Rudolf Binder
Volkmar Angermeier
Director, Raiffeisen Association Oberösterreich
Vice-President of the Supervisory Board, Chairman of
Raiffeisenbank for the Region of Eferding
Roman Braun (as of 17 May 2010)
Josef Grünwald (until 17 May 2010)
Annemarie Brunner
Vice-President of the Supervisory Board
Josef Kinzl (as of 17 May 2010)
Vice-President of the Supervisory Board, Chairman of
Raiffeisenbank for the Region of Schärding
Chairman of Raiffeisenbank, Region of Schwanenstadt
Member of the State Parliament and the Farmer’s Federation
Alois Buchberger
Chairman of Raiffeisenbank Ennstal
Manfred Denkmayr (as of 17 May 2010)
Chairman of the Supervisory Board, Raiffeisenbank
Mattigtal
Karl Dietachmair (as of 17 May 2010)
Director of Raiffeisenbank in the Region of Sierning
Ernst Eder (until 17 May 2010)
Chairman of Raiffeisenbank Attersee Nord
Karl Fröschl
Director of Raiffeisenbank Perg
Helmut Grasl (until 17 May 2010)
Chairman of Raiffeisenbank, Region of Ried
Hannes Herndl
President of the Chamber of Agriculture, State Chairman
of the Upper Austrian Farmer‘s Federation, Chairman of
Raiffeisenbank Windischgarsten
Christian Hofer
Director of the Upper Austrian Chamber of Commerce
Alexandra Kaar (as of 17 May 2010)
Regional Chairman of Raiffeisenbank, Region of Bad
Leonfelden, Vorderweißenbach branch
Josef Kinzl (until 17 May 2010)
Chairman of Raiffeisenbank, Region of Schärding
Walter Lederhilger
Councillor of the Chamber of Agriculture, Chairman of the
Supervisory Board of Raiffeisenbank Kremsmünster
Walter Mayr
Director of Raiffeisenbank, Region of Freistadt, Chairman
of the Association of Managing Partners of Upper Austrian Raiffeisen banks
Johann Moser (as of 17 May 2010)
Director, Executive Manager of Raiffeisenbank, Region
of Ried. i. I.
Josef Natschläger (until 17 May 2010)
Honorary Chairman of Raiffeisen, Region of Rohrbach
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Annual Report 2010
General Information
Supervisory Board
Robert Oberfrank (as of 17 May 2010) Deputy Chairman of Raiffeisenbank Inneres Salzkammergut and Chairman of the Bad Ischl branch
Staff council representatives
Helmut Feilmair
Gottfried Pauzenberger Chairman of the Staff Council, Vice President of the
Upper Austrian Chamber of Labour
Mayor of Kalham, Chairman of Raiffeisenbank for the
Region of Grieskirchen
Gerald Stutz
Franz Penz Chairman of the Section of Trade in the Chamber of
Commerce of Upper Austria, Member of the Supervisory
Board, Raiffeisenbank Linz-Traun Verwaltungsgenossenschaft reg. GenmbH
Deputy Chairman of the Staff Council
Dorina Bayer
Dietmar Felber
Josef Gokl
Eduard Pesendorfer Director of the Upper Austria Regional Administrative OfKarin Hetzmannseder (as of 17 May 2010)
fice, Deputy Chairman of Raiffeisenbank Salzkammergut
Josef Pfoser (as of 17 May 2010) Christoph Huber
Chairman of the Supervisory Board, Raiffeisenbank for
the Region of Rohrbach
Konrad Jäger
Kurt Pieslinger Albert Ruhmer (until 17 May 2010)
Manager of the Institute for the Promotion of Upper Austria as an Economic Location
Hermann Schwarz
Franz Preinstorfer (until 17 May 2010) Richard Seiser
Director of Raiffeisenbank Salzkammergut (until 31 May
2009)
Ulrike Rabmer-Koller (until 17 May 2010) Vice-president of the Upper Austrian Chamber of Commerce
State Commissioners
Gertrude Schatzdorfer (as of 17 May 2010)
Ministerialrat, State Commissioner to the Financial Markets Supervisory Authority
Managing Partner of Schatzdorfer Gerätebau GmbH &
Co KG
Regina Reitböck Angelika Sery-Froschauer (until 17 May 2010) Deputy State Commissioner to the Financial Markets
Supervisory Authority
Chairwoman for the Section of Advertising in the Upper
Austrian Chamber of Commerce
Günther Stadlmayr (until 17 May 2010) Director of Raiffeisenbank, Region of Vöcklabruck
Johann Stockinger Chairman of the Association of Chairpeople of Upper
Austrian Raiffeisen Banks, Chairman of Raiffeisen in the
Region of Gallneukirchen
Josef Nickerl
Honorary Presidents
Gerhard Ritzberger
Helmut Angermeier
Anita Straßmayr (as of 17 May 2010)
Advisor to the Chamber of Agriculture, District Represenative in the Farmer’s Federation, Chairwoman of the
Supervisory Board of Raiffeisenbank Bad WimsbachNeydharting
Wolfgang Weidl
CEO of Oberösterreichische Versicherung AG, Chairman
of the Supervisory Board of Raiffeisenbank Leonding
Herbert Zaglmayr (until 17 May 2010)
Director of Raiffeisenbank, Region Braunau
* registered and unregistered
15
2010 IN RETROSPECT
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Delegation from the German
Chamber of Commerce in Austria
A decisive partner for
key businesses in Upper Austria
A reliable partner
for companies
To further strengthen economic
relations between Austria and Germany, Raiffeisenlandesbank Oberösterreich Aktiengesellschaft has
been the official delegation from the
German Chamber of Commerce in
Austria since 2010. This network
helps above all to promote bilateral
economic relations.
In 2010, Raiffeisenlandesbank Oberösterreich again succeeded in demonstrating its creative strength: In
all, 80 per cent of industrial firms and
50 per cent of the small and mediumsized companies do business with
and the Upper Austrian Raiffeisen
Banks. In 2010, for example, consortium financing led by Raiffeisenlandesbank Oberösterreich raised
EUR 75 million for the excavation
company Asamer. Furthermore, Lenzig AG’s purchase of a Czech fibre
manufacturer, was made possible by
financing from Raiffeisenlandesbank
Oberösterreich and by other consortium partners.
The economy recovered in 2010 and
the outlook within domestic companies became noticeably better. Raiffeisenlandesbank Oberösterreich, as
an important partner for companies,
bears a particular responsibility and
has proven itself as a reliable partner in economically turbulent times.
In 2010, Raiffeisenlandesbank
Oberösterreich helped 29 companiesthrough difficult times, thereby
saving 7,430 jobs.
JanuarY
marCh
FeBruarY
apriL
maY
June
Family-friendly
Company
Our special economic
programme is a complete success
More women’s power
on the Supervisory Board
Success always depends on
people. As part of its strong focus
on customers, Raiffeisenlandesbank Oberösterreich therefore also
makes sure it has the best staff
to advise and support its customers. Customer orientation is built
on employee orientation. In 2010
Reinhold Mitterlehner, Federal
Minister of Economy, Family and
Youth, awarded Raiffeisenlandesbank Oberösterreich and its
subsidiaries the „workandfamily“
certification for their strong commitment to being family-friendly.
The special economic programme
initiated by Raiffeisen Banking Group
Upper Austria and the Trade and
Handicrafts Section of the Upper
Austrian Chamber of Commerce
continued in 2010 and has been a
complete success: Overall, 13,867
buildings were completely renovated
for thermal efficiency, and 141 city
centres were revitalised. A total investment volume of EUR 854 million
was unleashed.
In May 2010, President Jakob Auer
and his deputy, Volkmar Angermeier, were re-elected to their positions on the Raiffeisenlandesbank
Oberösterreich Supervisory Board.
Josef Kinzl is new to the Board,
replacing Josef Grünwald. The number of women on the Supervisory
Board at Raiffeisenlandesbank Oberösterreich also increased. There are
currently six women on the Board.
Annual Report 2010
General Information
Review
The year 2010 was successful for Raiffeisenlandesbank Oberösterreich Aktiengesellschaft, launching several positive initiatives for our customers. Successful development and unique creative strength are reflected in numerous milestones over
the last year:
An experienced partner
on PPP projects
Raiffeisenlandesbank Oberösterreich has proven itself as a strong
partner in public-private partnership projects: In August 2010,
construction began on the Maissau
bypass in Lower Austria, a project
in which private investors and the
public sector work closely together. Financing was arranged by
Raiffeisenlandesbank Oberösterreich, which has already financed a
series of successful public-private
partnership projects. The number
of public-private partnership projects is growing fast; there are currently 442 PPP projects with a total
volume of EUR 2.7 billion in the
planning and execution phases.
JuLY
auguSt
Moody’s confirms the trend of
stability at Raiffeisenlandesbank
Oberösterreich
Our business model, focussed on
close ties with our customers and
exerting our creative strength, was
highly successful. In 2010, Raiffeisenlandesbank Oberösterreich
again experienced outstandingly
successful growth. This was confirmed by the rating from Moody’s
Financial Institute Group: Raiffeisenlandesbank Oberösterreich was
rated in all categories as a stable
prospect, one of the best ratings
among Austrian banks.
Ludwig Scharinger marks 25 years
as Chief Executive and Chairman of
the Managing Board.
2010 was a special year for Ludwig
Scharinger, Chief Executive and Chairman of the Managing Board of Raiffeisenlandesbank Oberösterreich. He
celebrated his 25th anniversary as Chief
Executive and Chairman of the Managing Board of Raiffeisenlandesbank
Oberösterreich, and he can look back
on successful developments together
with his Managing Board colleagues
and more than 3,100 employees.
SeptemBer
oCtoBer
Eastern Europe remains
an important market
The strengthening of our export
business was also a focus in our
customer support in 2010. Raiffeisenlandesbank Oberösterreich
assisted more than 19,795 customers in their activities in Eastern
Europe in 2010. For example, on
one of the economic missions to
Krasnodar organised by Raiffeisenlandesbank Oberösterreich, the
sale of 1,080 heifers from Upper
Austria to a Southern Russian
business was arranged.
novemBer
DeCemBer
Opening of
the in-house company creche
“Bank of the Year 2010
in Germany”
In September 2010, Raiffeisenlandesbank Oberösterreich became the first
bank in Upper Austria to establish an
in-house creche for children between
1 and 3 years of age, as well as an
expanded kindergarten group for
children between 1.5 and 6 years of
age. “Sumsi’s Learning Garden,” a
child care facility, is open year-round
and has hours that are flexibly adaptable to the working hours at Raiffeisenlandesbank Oberösterreich.
Raiffeisenlandesbank Oberösterreich Aktiengesellschaft was awarded the title of “Bank of the Year
in Germany” for the second time
in 2010. The Raiffeisenlandesbank
Oberösterreich branch in Southern
Germany, with its eight locations,
again beat out 35 other nominated
banks to win the award. The Oskar-Patzelt-Stiftung (foundation) in
Berlin gives the “Bank of the Year”
award within the framework of the
“Großer Preis des Mittelstandes,” a
major prize for medium-sized companies. This prize honours outstanding achievements, commitment
and success in the creation and
support of healthy medium-sized
business structures.
17
As Austria‘s strongest regional bank, Raiffeisenlandesbank Oberösterreich acts as a role model
and accordingly assumes a degree of responsibility. All of its activities take into account the
well-being of individuals and focus on acting responsibly and at the same time efficiently. These
basic principles obligate Raiffeisenlandesbank Oberösterreich to an extensive commitment to
people, to the social and cultural life of this country, and to our employees.
EUR 55,000 to lighten the darkness
Solidarity has always been a declared goal at Raiffeisen Banking Group Upper Austria, as is
demonstrated, for instance, by the donation campaigns we run every year. The call for donations
to the “Licht ins Dunkel” (Lighten our Darkness) charity goes back many years and was heeded
once again in 2010 by a large number of Raiffeisenlandesbank Oberösterreich customers. We
succeeded in collecting a total of EUR 55,000 for “Licht ins Dunkel”. CEO Ludwig Scharinger
handed over the donation at the ORF Christmas gala on 24 December. In addition to this commitment, Raiffeisenlandesbank Oberösterreich handed over a total of EUR 6,000 to the Christmas charitable campaigns run by the newspapers Kronen Zeitung and Neues Volksblatt. It also
took on the printing of 25,000 payment slips.
20 years of providing help to co-owners who have got into difficulties
For 20 years now the Solidarity Association of Raiffeisen Banking Group Upper Austria has
supported co-owners who have got into difficulties as the result of accident or death through
no fault of their own. Co-owners (previously called members) are persons who have subscribed
for shares of their Raiffeisen Bank in Upper Austria. Since the Solidarity Association was founded it has been able to offer help in 967 cases. A total of about EUR 2.3 million have been paid
out. In 2010 the Solidarity Association helped in 21 cases, paying out more than EUR 77,000.
Donating to the Red Cross
The Red Cross attempts to improve the lives of the socially disadvantaged and those who are
in need through humanitarian activities. For the last five years Raiffeisenlandesbank Oberösterreich has been committed to the youth work done by this humanitarian organisation. In 2010
a total of EUR 36,000 were donated to campaigns such as the Helfi certificate with theoretical
and practical exercises for the critical topic of First Aid, as well as bicycle inspections for pupils
in their fourth year at primary school.
Restoration of the Engelszell Church now certain
Raiffeisenlandesbank Oberösterreich has always supported the maintenance of important cultural artifacts in our country, and in 2009 it initiated a donation campaign for the preservation of
the Engelszell Church. Thanks to the “Saving the Engelszell Church” campaign, EUR 450,000
were raised in 2010, covering the costs of the first phase of construction and ensuring that the
general restoration will be completed.
Support for Alzheimer‘s research
Research and development are necessary for medical progress and society‘s well-being.
Supporting research regarding Alzheimer’s disease is a matter of great concern to Raiffeisenlandesbank Oberösterreich, as the number of those affected continues to rise. Thereby
18
Annual Report 2010
General Information
The Engelszell Monastery
FM Reinhold Mitterlehner (centre)
presents the certificate
“workandfamily”
Summer kindergarten
Raiffeisenlandesbank Oberösterreich extended its sponsoring partnership in 2010 with Vienna‘s
Institute for Molecular Biotechnology, led by Josef Penninger. This sponsorship was started in
2009 to provide the financial foundation for a research project analysing the disease mechanisms of Alzheimer‘s.
Pioneering role in commitment to families
A sound work/life balance for its employees is very important to Raiffeisenlandesbank Oberösterreich. In January 2010, the Federal Ministry of Economy, Family and Youth awarded Raiffeisenlandesbank Oberösterreich and its subsidiaries the basic certificate of the „workandfamily“
audit for its particular commitment to being family-friendly. Raiffeisenlandesbank Oberösterreich was the first bank in Upper Austria to set up its own crèche and kindergarten in 2010.
“Sumsi‘s Learning Garden” is precisely tuned to the needs of working parents, is open all year
round and the children also learn English as they play there.
Summer kindergarten
Functional family life for our employees, and the compatibility of family and work, are fixed components of Raiffeisenlandesbank Oberösterreich‘s corporate culture. Since 2004, Raiffeisenlandesbank Oberösterreich has offered a free summer kindergarten in August for employees‘
children. The great demand for this programme reveals the importance of child care during
the summer months. In 2010, highly trained teachers cared for 50 children with a diverse programme of activities.
Support for reintegration after parental leave
Raiffeisenlandesbank Oberösterreich gives optimal support to employees when they return to
work after taking parental leave. To get employees back quickly into the swing of working life,
Raiffeisenlandesbank Oberösterreich will, for instance, hold seminars on changes and innovations at the Bank. Additionally, employees have access to the learning platform raiffeisen@
learning so that they can refresh their skills.
19
Project VITA - promoting health
Employees at Raiffeisenlandesbank Oberösterreich have a substantial share in its commercial success. This can only work if there is a pleasant working atmosphere and employees are
healthy and content. For years, the VITA health project has offered numerous measures for the
promotion of health. Besides free presentations on healthcare, nutrition and stress management, employees are also given active support. For instance, all departments are provided
baskets of fresh Upper Austrian apples once a week. RLB also provides water dispensers with
water that is enriched with natural electromagnetic oscillations.
Standards in training and development
Innovative products and services for its customers have always accompanied Raiffeisenlandesbank Oberösterreich along the route to becoming Austria’s strongest regional bank. For
us — and for our customers — success can only come through maximum customer focus.
Raiffeisenlandesbank Oberösterreich accordingly puts a high value on having the most highly
trained and committed employees: they receive innovative educational opportunities as part of
the Bank’s forward-looking personnel development programme. This is mainly made possible
by an online learning platform that received the European e-Learning Award; this system facilitates flexible, forward-looking learning, regardless of time or location. Training and development
is highly valued, particularly among apprentices. Committed young employees at Raiffeisenlandesbank Oberösterreich can complete their professional qualifications exam while they carry
on with their regular apprenticeship training.
Responsibility for rural areas
Raiffeisenlandesbank Oberösterreich and the Upper Austrian Raiffeisen banks are not just the
most important providers of local financial services in our province; they also demonstrate
particular commitment to all 444 Upper Austrian communities. In the community financing and
services sector, Raiffeisenlandesbank Oberösterreich specialists offer customised products
and financing that are precisely tailored to projects. The communities value the service, responsiveness, expertise and competitive terms offered by the Raiffeisen Community Service.
Ensuring local supply
Local supply makes an important contribution to the quality of life. To support local supply
in communities without grocery stores, Raiffeisenlandesbank Oberösterreich and the Pfeiffer
Group have developed an innovative local supply concept called „Rural Revival.“ Seven years
ago, the first local supplier was opened in Rottenbach. In the meantime, this successful “Rural
Revival” model has taken hold in Lower Austria, Salzburg and Styria. There are now eight locations in Austria providing supplies to 25,000 households. More “Rural Revival” local suppliers
are planned in four Austrian provinces, and even Bavaria has expressed interest in this forwardlooking concept.
Raiffeisen promotes institutions and associations through partnerships
Around two million Austrians belong to associations and clubs. They could not exist without the work carried out by their honorary members. They are actively committed to their
fellow people and are therefore a critical component of social, cultural and community life.
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Annual Report 2010
General Information
Cooperation with rural youth extended
“Rural Revival” safeguards local
supply
Support for the young
firefighters association
Raiffeisenlandesbank Oberösterreich has been supporting institutions and associations in
Upper Austria for three decades through partnerships with them. The aim of this cooperation is
to provide both financial and moral support to help our partners achieve their goals. Raiffeisenlandesbank Oberösterreich has partnerships with large organisations and federations for youth
and folk culture, as well as with safety organisations.
The Kameradschaftsbund
Raiffeisenlandesbank Oberösterreich has been in partnership for almost thirty years with
Upper Austria’s Kameradschaftsbund, which has around 300 member associations and
40,000 members. The partnership concentrates on supporting the Kameradschaftsbund’s
work, which takes the form of conferences and events.
Upper Austrian Young Firefighters Association – pioneers in Austria
With around 10,000 adolescents – more than 40 per cent of all the young firefighters in Austria – Upper Austria is the province that has most young firefighters. They make sensible use
of their free time in groups and receive training equipping them to become the much needed
firefighters of the future. Every two years there is a national young firefighters competition
and in 2010 a group from Upper Austria won the national championship. Raiffeisen Banking
Group Upper Austria supports the winning groups by presenting cash prizes and arranging
the much loved youth camps in the summer.
The most popular active youth organisation
The Upper Austrian Landjugend, an association for rural youth, is the most popular active youth organisation in the province, encompassing over 18,000 members in 210 local
chapters. Together with Raiffeisenlandesbank Oberösterreich in 2010, the programme was
approved and implemented in several Landjugend activities at the local, regional and state
level. Some of the special activities that took place were oratory competitions, mowing and
ploughing contests, the agrarian olympics, folk dance events and numerous seminars.
Oldest partnership with the Upper Austrian Military Command
Raiffeisenlandesbank Oberösterreich set up its first partnership with the Upper Austrian
Military Command in 1980, demonstrating its commitment to security. This collaboration
focuses on the promotion of partner events and cooperative activities. Another of Raiffei-
21
senlandesbank Oberösterreich’s partnerships is with the Upper Austrian officers’ society, a
sub-organisation of the federal armed forces.
Gold bonnet, headscarf and hat groups
In 2010 the 25th anniversary of Raiffeisenlandesbank Oberösterreich’s partnership with the
association of Upper Austrian gold bonnet, headscarf and hat groups was celebrated. With
443 local chapters and 18,000 members, this is one of Austria’s largest women’s associations. It is committed to preserving the custom and further development of Austrian national
costumes, and demonstrates a major commitment to social issues.
Safety has priority
Raiffeisenlandesbank Oberösterreich and Raiffeisen Banking Group Upper Austria want
there to be a high safety standard in Upper Austria. Besides equipping the Bank’s offices
with state-of-the-art technical equipment, this also involves working closely with the police
in training staff. The police’s office for safety, the provincial police command and the safety
academy are important partners in this work. The highlight of this partnership each year is
the Raiffeisen Safety Prize honouring those who have distinguished themselves in the field
of safety; this award is bestowed in the presence of the Federal Minister of the Interior.
Brass bands are big in Upper Austria
Our traditional partners include the Brass Band Association with its 482 brass bands and
24,000 active musicians in Upper Austria. Highlights every year are the award of the Brass
Band Prize to the most successful bands and the partnership concert which was held for
the 19th time last year. This partnership enables a large number of bands to demonstrate
their talents.
The Friends of the Lentos Art Museum Association celebrates 25 years
Raiffeisenlandesbank Oberösterreich also supports cultural associations. We should particularly like to call attention to the “Friends of the Lentos Art Museum Association”. Highlights
of the extensive programme presented to members every year are the annual carnival party,
involving a sizable auction of pictures, and the Christmas conference. Members generate
substantial funds every year that are donated to the Linz Art Museum so it can buy new
works of art. On 4 October 2010, the association celebrated its 25th anniversary.
Close ties to Johannes Kepler University
Johannes Kepler University (JKU) in Linz has played an important role in the success of our
province. This is why it is particularly important to Raiffeisenlandesbank Oberösterreich to
provide JKU with the best possible support at all levels. There is intensive cooperation with
the university’s institutes for banking, controlling, management accounting, company accounting and auditing. In addition, the Ludwig Scharinger Prize has been awarded since 2001 for
outstanding bank-related doctoral dissertations and for graduate and post-graduate theses.
Raiffeisenlandesbank Oberösterreich also has the technological and financial originator of the
Kepler Card, which is used by around 17,000 students and more than 2,000 employees. For 12
years it has been impossible to imagine the JKU without this multifunctional card, which serves
as ID for students/employees, means of payment and parking card.
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Annual Report 2010
General Information
Upper Austrian gold bonnet, headscarf and hat groups
Hagenberg University of Applied
Sciences
School Olympics
Strong partnership with Upper Austria University of Applied Sciences
Not only those in the ivory towers of the top universities deserve support: the universities of
applied sciences can also count on support from Raiffeisenlandesbank Oberösterreich. Raiffeisenlandesbank Oberösterreich has been the exclusive bank partner of the Hagenberg and Linz
campuses of the Upper Austria University of Applied Sciences since 2005.
Founding partner of Hagenberg software park
The Hagenberg software park is one of the most successful technology centres in Austria.
Over 1,000 experts, 400 alone from this region, work together closely at 40 innovative industrial
companies and eight internationally recognised research institutes. An additional 1,300 young
people study at the University of Applied Sciences and at the University Institutes. The Hagenberg Software park‘s basic research enjoys global acclaim. The Hagenberg software park
combines basic research, education and application, as well as an entrepreneurial spirit, at the
highest levels.
Raiffeisenlandesbank Oberösterreich is one of the software park‘s founding partners and works
together with the Upper Austrian state, the Johannes Kepler University and the Hagenberg
community to ensure the future development of the Hagenberg software park. Proof of the
Hagenberg software park’s position in the premier league was given once again in 2010. Bruno
Buchberger, founder and head of the Hagenberg software park, was named as “Austrian of the
Year” in the “Research” category. Buchberger is considered one of the world’s leading computer mathematicians.
Commitment to schools
The future of our country is in the hands of our youth. That is why Raiffeisenlandesbank Oberösterreich has always considered it important for young people to learn at an early age how to
deal with money. It is also the reason we are involved in the association of Upper Austrian school
sponsors for implementing important school projects. The reading and writing skills of children
in the fourth year at primary school are promoted by Raiffeisenlandesbank Oberösterreich by
23
means of the annual School Olympics. To make their first day at school even better, Raiffeisen
Banking Group Upper Austria gives children starting school every year satchels with safety
reflectors and small presents inside. Raiffeisen Banking Group Upper Austria‘s stock market
game also has educational features in order to teach pupils how to properly invest money on
the stock market in the context of a trading game.
Virtual “St@mmtisch” (regular meeting point)
Young people are always on the internet – with all the advantages as well as the risks that this
implies. Almost every other adolescent has experienced cyber stalking or cyber mobbing. Raiffeisen Banking Group Upper Austria is seen by 88 per cent of all Upper Austrians as the safest
banking group, which is why it takes care to look after the safety of its young customers. In cooperation with the “BildungsMedienZentrum” (Education and Media Centre) of the province of
Upper Austria and Life Radio, Raiffeisen Banking Group Upper Austria initiated a province-wide
information campaign in 2010 on the subject of “Facebook, YouTube, Twitter & Co – Opportunities and Challenges in a Virtual World”. The aim is to present adolescents with the consequences of their online activities, to raise the awareness of parents and to include teachers in the
process. The series of events entitled “Virtual St@mmtisch” has already been held five times in
2010 and the intention is for this information campaign to be expanded in 2011.
Fundraising for Pakistan
After the dreadful floods in Pakistan in August 2010, when more than 20 million people lost
their homes and whose harvests were completely wiped out, Raiffeisen Banking Group Upper
Austria initiated a major donation campaign with Caritas. With the help of Raiffeisen customers,
this raised more than EUR 110,000. The donation enabled the water supply in ten villages to be
restored, 20 suspension bridges to be built and more than 1,000 families to be given emergency
aid packages. Raiffeisen Banking Group Upper Austria was able to help the victims of the earthquake in Haiti last year with EUR 265,000 in donations.
Cooperation extended with the farmers’ social security office
Farmers can quickly get into financial difficulties if they fall ill or have an accident. That is why
they or their dependants receive support from the farmers’ social security office. It makes loans
available to ensure both medical as well as professional and social rehabilitation. Raiffeisen
Banking Group Upper Austria assumes the mandatorily prescribed bank guarantees and dispenses with charging interest or any fees. This cooperation between Raiffeisen Banking Group
Upper Austria and the farmers’ social security office has existed since 1998 and has now been
extended until 31 December 2012.
24
Annual Report 2010
General Information
Bank of the Year 2010
named “Bank of the Year 2010 in Germany”
In 2010 Raiffeisenlandesbank Oberösterreich was named
for the second time as “Bank of the Year in Germany”. With
its eight branches in southern Germany, Raiffeisenlandesbank Oberösterreich is a creative, safe and reliable partner
that pays particular attention to Germany’s medium-sized
companies.
Particularly strong customer orientation
“We are delighted to be named “Bank of the Year in Germany”, not least because we were nominated and chosen
by companies and institutions. Customer satisfaction is the
highest form of award”, stressed Dr. Ludwig Scharinger,
CEO of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft. Raiffeisenlandesbank Oberösterreich had already
been named as “Bank of the Year” in 2008 and came out top
again in 2010 against a field of 35 banks nominated from all
over Germany.
Had the honour of accepting the trophy for the Bank of the
Year in Germany for the second time: Ludwig Scharinger,
Chairman of the Management Board of Raiffeisenlandesbank Oberösterreich, Ingrid Mozil, Raiffeisenlandesbank
Oberösterreich Regensburg,
Outstanding services promoted
The title of “Bank of the Year” is granted as part of the Oskar Patzelt Foundation’s “Grand SME
Prize” awards. The award recognises outstanding services, commitment and success in building up and looking after a customer base comprising healthy SME enterprises. The winners
have to be nominated by satisfied customers and business partners and provide outstanding
services in each of the following five categories:
1. Overall company performance
2. Creation/safeguarding of jobs and apprenticeships
3. Modernisation and innovation
4. Commitment to the region
5. Service and customer support, marketing
Successful commitment to southern Germany since 1991
Austria’s strongest regional bank has been successful in southern Germany since 1991 with its
sustainable and customer-oriented business policies. “We place great value on a relationship
with our customers based on trust, security and transparency,” says Scharinger.
At the end of 2010, Raiffeisenlandesbank Oberösterreich’s eight branches in Munich, Regensburg, Würzburg, Nuremberg, Passau, Landshut, Ulm and Heilbronn had 12,627 customers
under their care in Southern Germany, of which 8,445 were companies. The bank is, above all,
a reliable and strong partner for SME companies. “Our aim is to enable the SME‘s to grow over
the long term, to take advantage of opportunities with these companies and their employees
and to safeguard jobs”, according to Scharinger.
25
Raiffeisen Economic Forum and
Economic Advisory Boards
Linz, Upper Austria
The Raiffeisen Economic Forum Upper Austria and the Economic Advisory Board of Raiffeisenlandesbank Oberösterreich in southern Germany and the Economic Advisory Board in
Vienna unite leaders that have an important influence on the positive design of the future by
contributing their innovative ideas to help create ambitious projects. The Economic Forum and
Economic Advisory Boards are workshops for ideas and hubs of innovation. They form creative
platforms for constructive exchange and future-oriented actions.
To ensure Raiffeisenlandesbank Oberösterreich’s success over the long term, Austria’s strongest regional bank counts not only on a close relationship with its customers but in particular on its international relationships and networks. The setting up of the Raiffeisen Economic
Forum Oberösterreich and the Economic Advisory Boards is a clear signal of our determination
to maintain a strong network of important personalities and institutions at a regional, national
and international level.
26
Annual Report 2010
General Information
RAIFFEISEN ECONOMIC FORUM UPPER AUSTRIA
Kurt Pieslinger CHAIRMAN
Christoph Leitl
President of the European Economic Association, President of the Austrian Economic Association, Head of the
Upper Austrian Economic Association, Chairman of the
Global Chamber Platform
Manager of the Institute for the Promotion of Upper
Austria as an Economic Location
Michael Preymesser Managing Partner of M. Preymesser GmbH & Co. KG,
haulage company, Regensburg
DEPUTY CHAIRMAN
Peter Oberndorfer Professor of Public Law at Johannes Kepler University
Linz, Member of the Austrian Constitutional Court
Max Schachinger Managing Partner of Schachinger Logistik Holding GmbH
Viktor Sigl Upper Austrian Secretary of Economics, Chairman of the
MEMBERS
Supervisory Board of the Upper Austrian Technologie-
Manfred Asamer und Marketinggesellschaft
Member of the Board, Asamer Holding AG
Veit Sorger
Axel Diekmann
President of the Federation of Austrian Industries, Chairman
Partner, Verlagsgruppe Passau GmbH
of the Supervisory Board of Mondi AG, Chairman of the
Supervisory Board of Constantia Industries AG, Chairman
of the Supervisory Board of FIMBAG FinanzmarktbeteiWolfgang Eder ligung Aktiengesellschaft des Bundes, Chairman of the
Chairman and Chief Executive, voestalpine AG
Supervisory Board of Semperit AG Holding, Member of the
Supervisory Board of Lenzing AG
Gerhard Falch Chairman of AMAG Austria Metall AG
Günther Steinkellner Chairman of LINZ AG
Member of the Upper Austrian Parliament, Parliamentary
Party Chairman
Richard Hagelauer Florian Teufelberger Alois Froschauer Rector, Johannes Kepler University Linz, University Professor for Complex Digital Switching
Managing Board of Teufelberger Holding AG
Johannes Hödlmayr President of the Upper Austrian Chamber of Commerce
Board Spokesman, Hödlmayr International AG
Rudolf Trauner Verena Trenkwalder Anette Klinger President of the Chamber of Fiduciaries, Upper Austria
Chairwoman, IFN Beteiligungs GmbH, Chairwoman of the
Supervisory Board of IFN Holding AG
Peter Untersperger Josef Krenner Chairman of the Board of Management, Lenzing AG,
Chairman of the Trade Association for the Chemical
Industry, Member of the Board of Management of the
Federation of Industry of Upper Austria and Austria
Financial director of the state of Upper Austria
Peter Niedermoser President of the Upper Austrian Medical Association
Josef Peischer Director of the Upper Austrian Chamber of Labour
Eduard Pesendorfer Director of the Upper Austria Regional Administrative Office, Honorary Senator of the Johannes Kepler University
Linz, Member of the Supervisory Board of Raiffeisenlandesbank Oberösterreich
Gerhard Wildmoser
Attorney-at-law, President of the Society for National
Economics
Leopold Windtner
Chairman and Chief Executive, Energie AG Upper Austria
Gerhard Wölfel
CEO, BMW Motoren GmbH
27
RAIFFEISENLANDESBANK OBERÖSTERREICH ECONOMIC ADVISORY BOARD IN
SOUTHERN GERMANY
Elisabeth Bergschneider
Michael Hönig Vice-President of the Federation of Self-Employed
Persons - Deutscher Gewerbeverband, Landesverband
Bayern e. V., Regensburg
Attorney-at-law, Munich
Alexander Brochier
Managing Partner of Brochier Holding BmH + Co. KG,
Nuremberg
Dieter Daminger Town Councillor, Economic and Financial Secretary,
Regensburg
Axel Diekmann
Department Head, retd., of the Division for Business,
State Development and Transport with the Government of
Lower Bavaria
Andreas Kroiß Chairman of the Board of Management, Einhell Germany
AG,Landau a.d. Isar
Philipp Graf Von und zu Lerchenfeld
Partner, Verlagsgruppe Passau GmbH
Chartered accountant and tax consultant, Member of
Parliament in the Bavarian State Parliament, Regensburg
Stefan Durach
Michael Love CEO, Develey Senf & Feinkost GmbH, Unterhaching
Consul for Commercial Concerns of the Austrian Consulate General, Munich
Josef Eppeneder District Administrator, District of Landshut
Karlheinz Götz Chairman, Götz-Management-Holding AG, Regensburg
Hedi Hartmann Joachim Müller Honorary President of DOM - Deutsches Ostforum München e. V., Deputy Chairman of Heinrich-RiemerschmidStiftung Munich, Honorary Chairman of the Sweeteners
Association e. V., Cologne
Chartered accountant and tax consultant, Managing
Parnter, MHP Männer & Hartmann Treuhand GmbH as
well as MHP Männer & Hartmann Revision GmbH, Regensburg
Michael Preymesser Claus Hipp General partner of the Hipp Group, Pfaffenhofen
Auditor, tax consultant, attorney-at-law, Gründer und
Gesellschafter von Rödl & Partner, Nuremberg
Franz Xaver Hirtreiter
Walter Schweitzer
Proprietor of the AVP Automobile Group, Publisher of
Gazeta Olsztynska in Poland
President of the University of Passau
Ingrid Hofmann Deputy Chairman, Umdasch AG Supervisory Board,
Amstetten
Managing Partner, I.K. Hofmann GmbH, Nuremberg,
Member of the Presidium of the Association of German
Employers (BDA), Vice President of the Federal Leasing
Personnel Services Association (BZA)
28
Günther Keilwerth Annual Report 2010
Managing Partner of M. Preymesser GmbH & Co. KG,
Spedition, Regensburg
Dr. Bernd Rödl Alfred Umdasch
Albert Zankl
Town Councillor, former Mayor of the city of Passau
General Information
UpperAustriaHouse.Munich
Regensburg branch
UpperAustriaHouse.Vienna
RAIFFEISENLANDESBANK OBERÖSTERREICH ECONOMIC ADVISORY BOARD IN VIENNA
Hannes Androsch Ariel Muzicant
Industrialist, former Vice Chancellor
President of the Viennese jewish community
Klaus Hübner
Sigrid Oblak President of the Chamber of Fiduciaries,
President of the Federal Committee for Freelance Professionals in
Austria
Chief Executive, Wien Holding GmbH
Karin Keglevich
Managing Partner, Special Public Affairs PR-Beratung und Lobbying GmbH
Erwin Rotter
Lawyer, Vienna
Georg Springer
Chief Executive, Bundestheater-Holding GmbH
Karl Korinek Franz Welser-Möst
Former President of the Constitutional Court
Managing Director, Vienna State Opera
29
„Because our
business has strong
foundations at
home, we are in a
position to support
our customers effectively worldwide.“
Ludwig Scharinger CEO and Chairman of the
Managing Board
30
Annual Report 2010
General Information
Foreword
Roland Hechenberger Head of International Financing
Jennifer Ann Tinkler
Head of Correspondent Banking
Artem Snegirev
Head of the East European Desk
Wolfgang Aschenwald
Area Head
International Business
Danmei Chen-Moltas
Head of the Asian Desk
With its International Business Division, Raiffeisenlandesbank Oberösterreich is
indisputably the most important partner for Upper Austrian companies for their
activities abroad
Raiffeisenlandesbank Oberösterreich provides its customers with a global network of 15 efficient cooperation partners and 1,668 correspondent banks for their worldwide business. These partners ensure that our customers are
supported very closely but also very economically. Deputy Member of the Managing Board, Wolfgang Aschenwald,
is responsible for the International Business Division and he says: “With a total of 47 employees, we provide comprehensive customer service and cover the whole range of international banking products, such as export finance
and documentary business. In addition, we offer expertise in arranging syndicated loans for our customers as well
as complex project finance transactions, including those in the fast-growing area of renewable sources of energy.”
Close ties to southern Russia
We also offer bespoke services in the various regions through our dedicated Asia and Eastern European Desks.
Raiffeisenlandesbank Oberösterreich supports 19,795 Central European companies with their business in Eastern
Europe, 742 companies in their dealings in China and 284 companies doing business in India. Above all the southern
Russian region of Krasnodar, where the Olympic Games will be held in 2014, is one of the most important growth
markets in Russia. In order to better support customers doing business in this region, Raiffeisenlandesbank Oberösterreich has acquired a stake in Krayinvestbank, which belongs to the government of Krasnodar.
31
“Standing still
today means
taking a step
backwards.”
Hans Schilcher
Deputy Chief Executive and Deputy
Chairman of the Managing Board
32
Annual Report 2010
General Information
Foreword
Stefan Sandberger
Head of Cash Management
Karl Reiter
Managing Director
RACON Software GmbH
Hermann Sikora
Managing Director GRZ IT
Center Linz GmbH
Increasing globalisation makes it essential to have globally compatible payment transaction solutions: IT technology developed in Upper Austria enables a
worldwide network
Companies within the GRZ IT Group – these include GRZ IT Center Linz, LOGIS IT Service, RACON Software and RACON
West in Innsbruck – jointly make up one of Austria’s biggest IT service providers with over 700 employees.
Complete IT services with state-of-the-art software solutions
The GRZ IT Group not only ensures that all the Raiffeisen banks in Upper Austria have the full range of IT services
but also provides state-of-the-art software solutions to the whole Austrian Raiffeisen Banking Group as well as
many other banks in Austria. In particular ELBA, which was developed in-house, is viewed as a pioneer in online
banking. Globalisation and worldwide networks have raised the significance of globally compatible payment transaction solutions. Raiffeisenlandesbank Oberösterreich accordingly develops and offers its customers the most up-todate cash management instruments that make all the different flows of payment transactions easier, quicker and
more economical to manage. An exceptional degree of user-friendliness and quality, while ensuring the highest
possible level of security, distinguishes these software solutions. That is why, in the development phase, we invest
in the latest technologies to guarantee an extremely high level of functionality, reliability, ease and security.
33
„We focus on the
positive to serve our
customers best.“
Michaela Keplinger-Mitterlehner Member of the Managing Board
34
Annual Report 2010
General Information
Foreword
Roland Schaller
Head of Treasury Financial
Markets
Andreas Lassner Managing Director
KEPLER-FONDS KAG
Harald Hanneder
Head of Retail Banking
Helmut Praniess
PRIVAT BANK AG
930,214 customers trust Raiffeisenlandesbank Oberösterreich to provide competent and reliable support through their advisers
Closeness to customers, security and a sustainable strategy when managing customers’ assets are at the core of
our customer service. This is reflected in the level of customer confidence: According to a poll by Spectra, 88 per
cent of Upper Austrians consider Raiffeisen Banking Group Upper Austria to be the safest banking group. This high
level of confidence is justified, for example, by the safety of our customer deposits, which are guaranteed by our
high core capital ratio.
“Customer orientation” business model leads to lasting relationships
The individual business divisions of the whole Raiffeisen Banking Group Upper Austria interact in an optimal manner. This ensures its exceptional creative potential as shown by its ability to meet customers’ needs through crossfertilisation of all the Group’s highly developed skills. For instance, the specialists in securities, interest-rate and
foreign exchange transactions are located in separate dealing rooms but all within the Finance Trade Center. An
up-to-date branch network in the Greater Linz-Traun area looks after private clients, corporate customers and freelance professionals. KEPLER-FONDS KAG, based in Linz, is Raiffeisenlandesbank Oberösterreich’s fund subsidiary.
KEPLER is the fifth-largest domestic “KAG” (collective investment scheme) and exceeded EUR 10 billion in assets
under management for the first time in 2010. PRIVAT BANK AG provides clients with comprehensive customer service with individual asset-management solutions and tailor-made forms of finance. As part of the financial planning
developed by PRIVAT BANK AG, the overall financial situation of the customer is analysed and a targeted strategy is
developed, similar to the business planning process.
35
„You always have to be
able to build bridges in
the world of business.“
Georg Starzer
36
Annual Report 2010
General Information
Foreword
Robert Eckmair
Head of Major Institutional Customers
Eduard Hrab
Managing Director REAL-TREUHAND
Management GmbH
Andreas Szigmund
Head of Investment Management
Raiffeisenlandesbank Oberösterreich has for years focussed strongly on investment strategy through its use of a wide variety of instruments similar to shareholders’ equity.
In connection with these activities, Raiffeisenlandesbank Oberösterreich has made equity available for 390 associate companies. This involves, on the one hand, supporting customers in important markets of the future and, on
the other, the rapid and results-oriented realisation and implementation of important projects for the future. The
focus is on banks and financial institutions, corporations in growth or succession situations, holdings in companies
in particularly interesting locations and, above all, holdings in real estate and private/public partnerships.
442 Private-Public-Partnership Projects
The number of private-public partnerships is steeply rising, and there are currently 442 PPP projects with a total
volume of EUR 2.7 billion being planned or implemented. Raiffeisenlandesbank Oberösterreich has many years of
experience in real estate project financing, and in addition to individual financing concepts, also offers comprehensive support in current project management and coordination. REAL-TREUHAND acts as a strong partner and
specialist here: it develops and realises both large projects – from office towers through to whole city districts- and
tailor-made projects for individual investors. REAL-TREUHAND lays great store in its responsibility toward the region
working in tandem with municipalities on a variety of development projects and in revitalising town centres. In
addition, it provides major institutional customers with individual solutions tailored to their particular needs and a
broad range of services with structured forms of asset management, special funds as tailor-made asset management models, cash pooling systems and financing transactions.
37
“Everything we do has
to be easy to follow, be
credibly supported by
facts and figures, and
have a future.”
Markus Vockenhuber Member of the Managing Board
38
Annual Report 2010
General Information
Foreword
Wilhelm Kampelmüller Head of the business area
Financing Management
Christof Gutöhrle
Head of the Organisational
Unit “Analysis Structured
Financing”
Christian Grininger
Head of the Legal Office and
the Organisational Unit Financing Management
Richard Seiser
Deputy Head of the Legal Office
High risk-bearing capacity thanks to a low cost-income ratio
Raiffeisenlandesbank Oberösterreich has a unique creative potential which it employs for the benefit of its customers. Sustainability, transparency, security and trust are the key features here. The basis for this is provided by our
exceptionally high risk-bearing capacity, as reflected in a low cost-income ratio. At Raiffeisenlandesbank Oberösterreich, this stood at 40.2 per cent in 2010. The driving force behind this key figure is tight cost management. This
ensures that Raiffeisenlandesbank Oberösterreich’s competitiveness keeps increasing.
Financing opportunities
This puts Raiffeisenlandesbank Oberösterreich in a position to be even more dynamic in helping its customers take
advantage of opportunities and in financing all the different types of opportunities presented to companies and
their employees. We work out individual solutions together with our customers to optimally safeguard their financial future. As part of our tailor-made financing models, we employ all kinds of equity on behalf of our corporate
customers. Using creative forms of finance allows us to expand our customers’ financial leeway.
39
Group Management Report 2010 of
1. Business development and the economic situation
In 2010, Raiffeisenlandesbank Oberösterreich Aktiengesellschaft was able to present solid growth, continuing the successful and on-going upward trend. The results achieved
confirm that a business model based on security, trust, a special focus on the customer, accountability, and sustainability is
highly successful.
Raiffeisenlandesbank Oberösterreich has a coordinating function within the Raiffeisen Banking Group Upper Austria and ensures that its owners, the Upper Austrian Raiffeisen banks, can
maintain a strong relationship with the customers in their respective regions. This guarantees that Raiffeisen Upper Austria
is and will continue to be the regional provider of local banking
services in Austria and accordingly the defining factor in the
province of Upper Austria.
Group Structure
As a superordinate banking institute, starting with financial year
2007, Raiffeisenlandesbank Oberösterreich has been obliged
to prepare and publish consolidated financial statements in accordance with the IAS Regulation (EC) 1606/2002, abiding by the
regulations of the International Financial Reporting Standards
(IFRS). In addition, notes and explanations are required in accordance with the regulations of the Austrian Banking Act and
the Austrian Business Code. Apart from the parent company, the
consolidated balance sheet of Raiffeisenlandesbank Oberösterreich as at 31 December 2010 included 60 (previous year: 60) fully
consolidated Group companies and 7 (previous year: 6) Group
companies accounted for according to the equity method.
The 2010 merger of major parts of the banking operations of
Raiffeisen Zentralbank (RZB) and Raiffeisen International Bank
Holding (RI) affected the balance sheet of RZB shares in the
consolidated financial statements of Raiffeisenlandesbank
Oberösterreich. As of 1 July 2010, the holding in the RZB Group
will be balanced according to the equity method under IAS 28,
because since the restructuring mentioned above it now has a
measurable influence. The initial consolidation effect amounts
to EUR 274 million.
Income Statement
In 2010, Raiffeisenlandesbank Oberösterreich again succeeded
in maintaining its pleasing profit trend.
40
Annual Report 2010
Net interest income before risk provisions rose compared to
the previous year by EUR 214.6 million or 38.0% to EUR 779.9
million. In addition to interest income from loans and advances to customers and banks as well as fixed-income securities, this also reflects yields from shares and non-fixed-income
securities, as well as investments and companies consolidated
at equity. Interest expenses arise in conjunction with amounts
owed to customers and banks, with securitised liabilities and
with subordinated capital.
In comparison to the previous year, risk provision expenses decreased by 31.6% to EUR 126.7 million. Net fee and commission
income and expenses increased by 20.5% to EUR 107.4 million.
The other financial result improved year-on-year by EUR 34.3
million. It includes the trading profit, net income from investments and the net result from valuation of designated financial
instruments, which was noticeably improved in 2010.
The administrative expenses rose by 84.2% to EUR 533.4
million and contain personnel expenses, other administrative
expenses and depreciation. In the financial year 2010, the administrative expenses include approximately EUR 199.1 million
from the corporate group of GFA (Gesellschaft zur Förderung agrarischer Interessen in Oberösterreich GmbH), which
consists of the “VIVATIS Holding AG” Group and the “efko
Frischfrucht und Delikatessen GmbH” Group; due to the initial
consolidation date of 31 December 2009, no comparable expenses were posted in the previous year.
Other operating income, which mainly consists of income and
expenses of non-bank group companies, rose by EUR 217.0
million or 347.8% to EUR 279.4 million. Once again, this increase resulted primarily from the corporate group of the GFA
(Gesellschaft zur Förderung agrarischer Interessen in Oberösterreich GmbH), which contributed approximately EUR 209.9
million in the financial year 2010; corresponding yields were not
included in the previous year’s results.
The pre-tax profit for the year increased in comparison to the
previous year by a total of EUR 298.9 million, or by 136.5%.
Due to the capitalisation of deferred taxes, taxes on income
and earnings changed in 2010 by EUR 83.8 million year-on-year
and thus had a positive impact on after-tax profit for the year.
After-tax profit came to EUR 581.1 million in financial year 2010,
which represents an increase of EUR 382.7 million over 2009.
Group Management Report 2010
2010
2009
in EUR m
in EUR m
in EUR m
Change
in %
Interest and interest-related income / expenses
372.8
512.3
- 139.5
- 27.2
Result of companies that are accounted for at equity
133.1
53.0
+ 80.1
> 100.0
274.0
-
+ 274.0
Net interest income
779.9
565.3
+ 214.6
Risk provisions
+ 38.0
- 126.7
- 185.3
+ 58.6
- 31.6
Net interest income after risk provisions
653.2
380.0
+ 273.2
+ 71.9
Net fee and commission income
107.4
89.1
+ 18.3
+ 20.5
11.4
22.1
- 10.7
- 48.4
20.7
- 16.3
+ 37.0
> 100.0
- 20.8
- 28.8
+ 8.0
- 27.7
Trading profit
Net income from designated financial instruments
Net income from investments
11.3
- 23.0
+ 34.3
- 149.1
General administrative expenses
Other financial results
- 334.3
- 289.5
- 44.8
+ 15.5
General administrative expenses VIVATIS/efko
- 199.1
-
- 199.1
Other operating income
69.5
62.4
+ 7.1
Other operating income VIVATIS/efko
209.9
-
+ 209.9
Pre-tax profit for the year
517.9
219.0
+ 298.9
+ 136.5
63.2
- 20.6
+ 83.8
> 100.0
581.1
198.4
+ 382.7
+ 192.9
Cost-income ratio
45.3
39.2
Cost-income ratio (without VIVATIS/efko)
34.5
39.2
Taxes on income and earnings
After-tax profit for the year
Even if the initial consolidation effect from the RZB Group is
excluded (EUR 274 million), the increase of pre-tax annual profits year-on-year is an outstanding EUR 24.9 million or 11.4%;
after-tax profits amount to EUR 108.7 million or 54.8%.
Cost efficiency also increases risk-bearing capacity and contributes significantly to high competitiveness and creative
strength. Our highest priority is to continuously reduce costs
in relation to income. The cost-income ratio, which reflects a
bank’s risk-bearing capacity and efficiency, is at an excellent
level of 45.3%, yet is about 6.1% over the value for the previous year.
This comes from the inclusion of the corporate group of GFA
(Gesellschaft zur Förderung agrarischer Interessen in Oberösterreich GmbH), which consists of the “VIVATIS Holding AG”
Group and the “efko Frischfrucht und Delikatessen GmbH”
Group. These corporations, active as they are in the food and
beverage industry, because of their non-bank activities, are
found primarily in the group income sheet under “other operating income” and in the “administrative expenses”, thereby
consistently distorting the bank-specific parameter.
Excluding the overall positive contributions of these companies to the named item on the income statement, this yields
The Group
Initial consolidation effect RZB Group
+ 11.4
a cost-income ratio of around 34.5%, which corresponds to a
significant year-on-year decline of 4.7%.
Changes in the Balance Sheet
The balance sheet total for Raiffeisenlandesbank Oberösterreich as at 31 December 2010 was recorded at a value
of EUR 35,530 million. Compared to the preceding year,
this represented an increase of EUR 159 million or 0.4%.
As at the 2010 balance sheet date the volume of loans
and advances to customers totalled EUR 18,192 million.
Compared to the year before, this amounts to an increase
of EUR 769 million or 4.4%. The far-sighted risk provision policy applied when assessing credit exposure was
continued.
Loans and advances to banks as of the last balance sheet
date were EUR 6,869 million, which was EUR 574 million
less than on 31 December 2009.
The amounts owed to customers reached a record high of
EUR 9,294 million, showing a rise of 4.7% compared to the
previous year. This growth in deposits reflects our special
41
31 Dec. 2010
ASSETS
Loans and advances to banks
31 Dec. 2009
Change
in EUR m
in %
in EUR m
in %
in EUR m
in %
6,869
19.3
7,443
21.0
- 574
- 7.7
(of which loans and advances to Raiffeisen
Banks)
(1,094)
(3.1)
(1,035)
(2.9)
(+ 59)
(+ 5.7)
Loans and advances to customers
18,192
51.2
17,423
49.3
+ 769
+ 4.4
1,561
4.4
1,238
3.5
+ 323
+ 26.1
Financial assets
6,311
17.8
7,457
21.1
- 1,146
- 15.4
Companies accounted for at equity
1,650
4.6
654
1.8
+ 996
+ 152.3
947
2.7
1,156
3.3
- 209
- 18.1
35,530
100.0
35,371
100.0
+ 159
+ 0.4
Trading assets
Other assets
Total
31 Dec. 2010
EQUITY AND LIABILITIES
31 Dec. 2009
Change
in EUR m
in %
in EUR m
in %
in EUR m
in %
Amounts owed to banks
11,308
31.8
12,368
35.0
- 1,060
- 8.6
(of which to Raiffeisen Banks)
(4,011)
(11.3)
(3,828)
(10.8)
(+ 183)
(+ 4.8)
Amounts owed to customers
9,294
26.2
8,881
25.1
+ 413
+ 4.7
Liabilities evidenced by certificates
7,958
22.4
8,212
23.2
- 254
- 3.1
Other liabilities
1,935
5.4
1,763
5.0
+ 172
+ 9.8
Subordinated capital
2,003
5.6
1,672
4.7
+ 331
+ 19.8
Equity
3,032
8.5
2,475
7.0
+ 557
+ 22.5
35,530
100.0
35,371
100.0
+ 159
+ 0.4
Total
The balance sheet item “companies accounted for at equity“ rose in the financial year 2010 by a total of EUR 996 million or 152.3%.
In this context, the first-time balancing of shares in the RZB Group according to the equity method must be emphasised. Previously,
the shares were recorded in the balance sheet item “financial assets”.
customer orientation and the trust shown by the customers
of Raiffeisenlandesbank Oberösterreich and its subsidiaries.
Amounts owed to banks declined by 8.6%. Compared to the
previous year, this represents a decrease of EUR 1,060 million
to EUR 11,308 million.
As at the last two balance sheet dates, equity was composed
as follows:
31 Dec 2010 31 Dec 2009
in EUR m
in EUR m
Share capital
Participation capital
Capital reserves
Aggregate results
Minority interests
Total
42
Annual Report 2010
253.0
298.8
697.8
1,667.8
114.9
3,032.3
253.0
298.8
697.8
1,110.0
115.9
2,475.5
The growth in equity resulted primarily from the bank‘s high
capacity to refinance itself and establish core capital. A dividend distribution of around EUR 22 million is planned.
All in all, Raiffeisenlandesbank Oberösterreich Group has a
very pleasing equity capital situation. This makes it possible
for us to continue our expansive course as we accompany
our customers.
Bank Branches
As at 31 December 2010, the Group operated 61 bank
branches (unchanged from 2009). The extremely modern
network of branches with contemporary business facilities equipped in line with the very latest banking operation
know-how offers customers a maximum level of convenience for completing their banking business. The goal is to be
able to offer customers a high level of quality and discretion
Konzern
Michael Nefischer
Head of organisational unit
“Organisation and
Human Resources Development”
Josef Altmann
Head of the business area
“Support for Raiffeisen Banks
and Human Resources”
Johannes Pernkopf
Business area “Support for Raiffeisen
Banks and Human Resources”
Only motivated and highly trained employees guarantee that
Raiffeisen Banking Group Upper Austria can sustain its success
This is why innovative training and education opportunities were created in the course of a forward-looking personnel development programme, such as the Raiffeisenlandesbank Academy for building up management succession
and a trendsetting training system that provides the basis for a path to university for our future bankers.
Continuous certification guarantees a high standard
To support the company‘s training and development through life-long learning, we use a customised e-learning
system that received the European e-learning Award. Raiffeisenlandesbank Oberösterreich‘s high training standards
are attested by the renewed certification from LIMAK Johannes Kepler University Business School and the Research
Institute for Banking and Finance at the Johannes Kepler University Linz. The 2009 re-certification focused primarily
on efficient and sustainable multimedia e-learning, Web-based training (WBT), pioneering technology and the consistency of the training and development strategy as special strengths. With an internal company creche, as well as
a kindergarten group and a summer kindergarten, Raiffeisenlandesbank Oberösterreich has assumed a leading position in family-friendly support. These efforts were recognised by Austria’s Ministry of Economy, Family and Youth
with the “workandfamily” certification.
43
in customer support in addition to highly developed selfservice components.
accounts, SME support, international finance and correspondent banking as well as Raiffeisenlandesbank Oberösterreich’s
retail business.
“Bank of the Year 2010” in Germany
Corporate customers
Raiffeisenlandesbank Oberösterreich has been active in southern Germany since 1991. In addition to locations in Passau,
Nuremberg, Munich, Regensburg, Landshut, Ulm and Würzburg, the southern German branch has had a location in Heilbronn since early 2008. Raiffeisenlandesbank Oberösterreich’s
main focus in southern Germany is corporate banking and the
superior private banking sector, as well as supporting the public purse via public-private partnerships.
The Oskar-Patzelt Foundation in Berlin named Raiffeisenlandesbank Oberösterreich „Bank of the Year 2010”, for the
second time after 2008, as part of the „Großer Preis des Mittelstandes,“ a major prize for medium-sized companies. Raiffeisenlandesbank Oberösterreich prevailed in competition with
35 nominated banks from all over Germany. The award is conferred on a bank that has earned merit through special commitment to the support and advancement of medium-sized
enterprises and the development of financial structures.
Human Resources Management
During the 2010 financial year, on average, the fully consolidated companies employed a workforce of 4,355 (previous year:
4,360). Of this number, 2,188 (previous year: 2,192) account for
the corporate group of the GFA (Gesellschaft zur Förderung agrarischer Interessen in Oberösterreich GmbH), which consists
of the “VIVATIS Holding AG” Group and the “efko Frischfrucht
und Delikatessen GmbH” Group.
With a tailor-made overall design, Raiffeisenlandesbank Oberösterreich added new momentum to the training and development of apprentices in 2010. This paves the way to university
for our next generation of bankers.
At the Raiffeisenlandesbank Academy, which was founded to
build up future managers, high-potential employees with individual training programmes are promoted and prepared for
deployment in strategically important positions and areas.
Segment Reporting
Together with the Upper Austrian Raiffeisen banks, Raiffeisenlandesbank Oberösterreich is not only the most important
regional provider of financial services in the province, it also
supports customers in their global activities via a network of
partner and correspondent banks with numerous special services. Approximately 80% of industrial firms and 50% of the
small and medium-sized companies work with Raiffeisenlandesbank Oberösterreich.
Groups
The Groups business area handles the acquisition and support
of large corporations.
The intensity of support varies, ranging from the role of a consortium member to the role of a core or house bank. The „typical“ customer of this organisational unit generates at least EUR
100 million in sales per year, is one of the TOP 500 companies
of Austria, has strong international activities and is an industrial
firm. 120 such clients are being supported throughout Austria.
The structure of the companies sets high standards in the area
of support and the finance, treasury and cash management
products. In addition to standard products such as interest and
currency hedging instruments, capital market products such
as corporate bonds, hybrid bonds or profit participation bonds
are also offered. When awarding risk lines, the products of the
money and capital market in the treasury as well as cash management and cash pooling usually have as large a proportion
as classic credit financing.
The business area therefore sees itself as a classic customer
adviser that provides customers the best possible support by
working in cooperation with the individual product range specialists. Leasing and factoring in particular are offered for optimising financing structures.
Starting from Raiffeisenlandesbank Oberösterreich‘s strong
market position among major industrial enterprises in Upper
Austria, the goal of the Groups business area is to acquire additional key accounts in Austria in the coming years and in so
doing become a preferred point of contact for the top industrial
firms in Austria.
Corporates & Retail
Major institutional customers
The Corporates & Retail segment comprises the business
areas corporate customers and groups, institutional key
In supporting institutional key accounts, Raiffeisenlandesbank
Oberösterreich offers individual solutions tailored to the needs
44
Annual Report 2010
Konzern
Harald Stellnberger
Head of Residential Services
Martin Frühwirth
Head of Consulting on Subsidies
Stefan Schmalwieser
Consulting on Agricultural
Subsidies
Robert Preinfalk
Head of Division
KMU Raiffeisen Banks
Number one in grant financing:
Of all Austrian banks, Raiffeisen Banking Group Upper Austria
supports the greatest amount of grant financing
Raiffeisen Upper Austria is not just the most important partner for companies in optimal financing; it is also the
strongest grant financier in the state. Every second grant application from small-, medium- and industrial-sized
businesses in Upper Austria goes to Raiffeisen Banking Group Upper Austria. Throughout all of Austria, Raiffeisenlandesbank Oberösterreich is the leading trustee savings bank for supporting ERP loans for investments in modernisation and expansion. In 2010, the market share in Upper Austria was 53 per cent. The number of subsidy approvals
climbed by approximately 80 per cent in comparison to 2009.
Total grant value of EUR 32.8 million
In 2010, with 2,467 grant applications with an investment volume of EUR 428 million, the total cash value –
meaning savings to our customers through subsidies – reached EUR 32.8 million. The high proportion of agricultural
customers is of course reflected in agricultural subsidies: our market share in this segment is at 86 per cent, with
4,757 subsidy applications in 2010. Major effort for private persons: the specialists at Raiffeisen Upper Austria have
supported more than 500,000 residential construction subsidy applications.
45
of the customers and a broad spectrum of services with structured investments, special funds as customised investment
models, cash pooling systems and tailored financing.
Close cooperation with Raiffeisenlandesbank Oberösterreich‘s
Finance Trade Center in liquidity management and investment
round off the main areas of servicing.
Raiffeisenlandesbank Oberösterreich has many years of experience in real estate project financing and in addition to individual financing concepts, also offers comprehensive support
in current project management and coordination. Close cooperation with Real Treuhand ensures that every project runs
smoothly.
experience to fully tap all state and federal subsidies, as well as
EU funds. Specifically, companies in 2010 submitted 2,467 applications and obtained a total subsidy cash value of EUR 32.8
million, which represents savings for customers. The investment volumes behind these funds were approximately EUR 428
million, providing an important economic stimulus. Currently,
ERP loans allow small- and medium-sized businesses to invest
without immediate liquidity shortages. The main focus here is
on a customer-oriented and efficient application processing at
Raiffeisenlandesbank Oberösterreich.
International market
For the speedy realisation and implementation of important future projects, Raiffeisenlandesbank Oberösterreich has successfully relied on special financing models such as Public
Private Partnership for years. A total of 436 projects with a
total investment volume of EUR 2.68 billion are currently under
development or in operation.
Raiffeisenlandesbank Oberösterreich is not only the most important supplier of local financial services, it also supports
its customers in their global projects via the global network
of competent partner and correspondent banks. Its close cooperation with strong and established commercial banks in all
parts of the world enable Raiffeisenlandesbank Oberösterreich
to keep the level of its service enormously high but its costs
extremely low.
In addition, Raiffeisenlandesbank Oberösterreich offers individual cash management solutions for optimising domestic and
international payment transactions in cooperation with its subsidiaries GRZ and RACON as IT and software providers.
With 47 employees in the International Business area, Raiffeisenlandesbank Oberösterreich offers its customers comprehensive advice and covers the whole range of products for
international business:
SME support
Export finance (export fund procedures, Kontrollbank funding pool) and documentary business (import/export letters
of credit, guarantees)
International support in association with our cooperation
banks provides support for company foundations, opening
accounts, efficient cash management solutions and financing working capital
Project financing with integration of supranational banks,
e.g. the European Bank for Reconstruction and Development (EBRD), the European Investment Bank and other national and international institutions
Arrangement of large-volume financing projects and their
syndication in the Austrian and international banking market
Domestic small- and medium-sized businesses, along with
Raiffeisenlandesbank Oberösterreich as their local financial
supplier, share a responsibility towards their region. Stable
partnership enables us to overcome the challenges of today
together. Values such as closeness, security, reliability and
responsibility make essential contributions to a sustainable
customer relationship. The focus is no longer exclusively on
providing liquidity, but rather on custom-tailored financing concepts that support business development. The experts from
Raiffeisenlandesbank Oberösterreich develop these concepts
through discussions with business people, taking into account
both hard and soft facts. This approach emphasises optimal
financing and support, as well as consulting services and process support during the challenge of business succession.
Raiffeisenlandesbank Oberösterreich continues to be uncontested as the most important partner for the international business of Upper Austrian companies.
Subsidy service
Companies benefited from Raif feisenlandesbank
Oberösterreich’s comprehensive support and utilisation of all
available subsidy opportunities in 2010. With a market share
of 57.6% among commercial subsidies, Raiffeisenlandesbank Oberösterreich is clearly Number One, supporting their
clients with a combination of grants, low-interest loans and
guarantees. During the subsidy application process, Raiffeisenlandesbank Oberösterreich specialists use their extensive
46
Annual Report 2010
2010 began with increasing and promising international activity
among our customers. In the middle of the year, there was a
broad upswing in export activity among Austrian and German
businesses, allowing outstanding numbers both in terms of volume and revenue. The markets in China and India experienced
especially high rates of growth in business with Austrian and
German customers. Eastern Europe, especially Russia, was
rediscovered over the course of the year, resulting in aboveaverage growth throughout the region. The specialists in the
Konzern
Günther Grössmann
Chief Executive, RVM RaiffeisenVersicherungsmakler GmbH
Manfred Herbsthofer
Chief Executive,
Gesellschaft m.b.H.
Andreas Wagner
Managing Board,
activ factoring AG
Kurt Hütter
Head of Division, Groups /
Markets in Czech Republic
Helmut Fürlinger
Head of Division
Corporate Customers
Financial engineering: The modern combination of various products
and services means success-oriented customer support
Dynamic customer relationships require customer services that are oriented towards success and results. This is
why Raiffeisen Banking Group Upper Austria is broadly positioned and supports company investment plans with a
broad array of innovative financial instruments.
Hub for modern finance and business services
As a hub for modern finance and business services, debt capital as well as all possible types of equity capital are
made available. For customer support that is as dynamic and broadly positioned as possible, Raiffeisen Banking
Group Upper Austria has developed Financial Engineering in which different products and services are brought together. These products and services are seamlessly intermeshed to meet customer and project needs, thereby optimally reinforcing each other.
These financial services include for example:
■
■
■
■
Intelligent cash management solutions
Provisioning venture and partner capital
Real estate financing
Factoring
Leasing
Innovative insurance solutions
Export finance
Export liability
Instruments for interest rate and currency hedging
■
■
■
■
■
47
Bank‘s international business have special expertise in these
markets in particular.
Above all, our local representative office in India succeeded in
gaining market share and significantly increasing its business
volume (up +46.7% compared to 2009). We not only process
transactions for our corporate customers in Austria, our German
customers are increasingly taking advantage of our local service
in that important market as well.
In two large Eastern European Forum events in 2010, one in Linz
and one for the first time in Munich, our customers obtained
information about the Bank‘s capabilities in those markets in
workshops and presentations. In addition, two economic delegations were sent to southern Russia, where our clients were
convinced of the existing business opportunities, on site and in
person.
In 2010, Raiffeisenlandesbank Oberösterreich further expanded
its No. 1 position in Upper Austria and its Austria-wide position
of leadership, in particular with regard to products that require a
high level of expertise and good service quality.
Despite a stagnant overall market in subsidised export finance,
the volume of export credits was increased by an additional
7.34% to EUR 1.444 billion. Growth of 40.5% in document business in the processing of letters of credit and guarantees means
that the Bank was able to win market share.
The organisational unit Correspondent Banking supports 1,668
banks and 15 cooperation partners. These institutions enable
us to ensure the support of our customers very cost effectively.
With regard to services such as support in starting a business,
opening an account or even the use of efficient cash management solutions abroad, repeated on-site visits ensure that customers‘ needs are entirely fulfilled.
Raiffeisenlandesbank Oberösterreich continues to be the
only bank in the Upper Austrian market to offer the product project financing. We support our customers in investment projects worldwide and structure complex financing
through financial engineering. One focus in the area of project financing is the theme „Renewable Energies“. We are
currently providing financing for several biomass cogeneration units, photovoltaic systems, and hydroelectric power
plants for our customers. The number of project financing
applications continue to climb constantly, revealing the dynamism of this segment. In addition to the environmental
advantages, we finance economically sensible projects in a
sustainable and forward-looking field. The construction of a
decentralised energy infrastructure supports, among other
things, more rapid economic development in areas with poor
infrastructure.
48
Annual Report 2010
The provision of large financing volumes generally requires the
interaction of several financial institutions. The organisational
unit Syndication & Asset Sales is the central point of contact for
all front office areas in matters of syndications.
Despite the economic challenges in 2010, 31 transactions were
concluded under the lead management of Raiffeisenlandesbank
Oberösterreich, including participation from EBRD as well as the
Oesterreichische Kontrollbank. The total volume amounted to
EUR 976 million, more than half of which was placed with Austrian and foreign partner banks.
Retail business
The Retail Banking business area covers the support of private
customers, business customers and freelance professionals in
the Linz area.
One of the most important goals of Raiffeisenlandesbank Oberösterreich is to continuously increase customer satisfaction and
customer loyalty. This is why comprehensive customer satisfaction analyses, along with continuous new customer surveys, are
undertaken; the knowledge we glean from this information about
customer needs and desires is implemented constantly.
The results of the most recent customer satisfaction analysis
demonstrate further improvement of the customer loyalty index
which expresses the customers‘ overall satisfaction and their
sense of being welcomed and connected to Raiffeisenlandesbank Oberösterreich.
The account management concept was revised in 2010 to meet
our goal of having account managers invite their customers
more frequently to financial consulting meetings and regularly
present product offers to them. The customer surveys show that
customers react positively when their account managers keep
them regularly and actively informed about recent developments
and offers. The quality of consulting should continue to improve
in the coming years. This goes hand in hand with the constant
training and education of our employees. Safety, seriousness,
reliability and trust are priorities in customer support.
The network of branches of Raiffeisenlandesbank Oberösterreich in the Greater Linz-Traun area presents a modern, friendly
face. Ongoing investments include the security of bank branches and updating of the branch network. Upcoming highlights
in the expansion of the bank branch network include the opening
of the branch in the Gruberstrasse as well as the new building for
the successful branch in Puchenau.
In 2010, Raiffeisenlandesbank Oberösterreich increased its retail customer base to almost 76,500. This allowed a significant
increase in customers in the Greater Linz area, in line with our
mid-range planning. The goal for the coming years is to revive
and expand the network of branches in distinctive areas.
With all the success Austrian companies are having abroad, the
need is growing for up-to-date, globally compatible payment
transaction solutions. Raiffeisenlandesbank Oberösterreich is
sensitive to its responsibility to its customers, starting with international payment transaction solutions, product innovations
and cash pooling structures and extending to the Single Euro
Payments Area (SEPA).
The Raiffeisen SEPA credit transfer, Raiffeisen SEPA priority
payment, the SEPA direct debit, the SEPA company direct debit
B2B, and the SEPA draft represent a broad range of products
for customers. In 2010, more than 420,000 customers took advantage of the speedy and transparent SEPA credit transfer in
approximately 7.5 million transactions.
Raiffeisenlandesbank Oberösterreich’s corporate customers
have profited since 2010 from an expanded cash pooling offer.
In addition to new functionalities that enable customer-specific
settings, customers also have access to cash pooling information, updated on a daily basis by means of a web-based application for information provisioning.
Being able to book on an intra-day basis is a milestone in the
optimisation of payment transaction flows. Since June 2010, all
domestic, international SEPA and EU payments are displayed in
the customer’s account immediately after the transaction has
been completed. This allows Raiffeisenlandesbank Oberösterreich customers to have access at any time to the latest information on their account transactions.
As a pioneer in the development of highly advanced banking
products, Raiffeisenlandesbank Oberösterreich is the Austrian
market leader for electronic banking systems. This is confirmed
by Raiffeisenlandesbank Oberösterreich’s more than 297,000
Internet customers and a large number of Austrian companies.
The latest enhancement to the Raiffeisen ELBA-internet – account analysis – offers our customers a comprehensive overview
of their revenue and expenditures. On the basis of this information, Raiffeisenlandesbank Oberösterreich customers can analyse their financial situation at any time, easily and effectively,
and make sound decisions – and they can do all of this without
installing additional analysis software.
As a single source provider, Raiffeisenlandesbank Oberösterreich also offers its customers the most advanced Internet payment systems, eps-Online-Überweisung in Austria and Giropay
in Germany.
MultiCash offers customers an international electronic banking
solution that works with several banks. This means that international business players can use their accounts around the world
from Austria at any time, regardless of where their office may be.
Furthermore, Raiffeisenlandesbank Oberösterreich offers their
customers MultiCash remote, a service which provides hosted
electronic banking and cash management solutions for Europe.
MultiCash software is not installed directly on the customer’s
computers; it is operated and automatically maintained in a
highly secure banking computing centre in Linz.
The product competence is rounded off by a large number of
card offers. Raiffeisen Banking Group Upper Austria’s credit
card portfolio was increased to 138,000 units, and debit cards
increased to 512,000 units. Cashless card payments in particular
are becoming increasingly popular; in 2010, more than 21 million
Maestro payments (POS) were processed.
The Group
Cash management
Financial Markets
Continuity ensures successful development
After the disruptions of 2008 and 2009, the financial markets
began to enter a gradual normalisation phase in 2010. This
development was also demonstrated in a resurgent interest
among various investor groups in a broad range of securities
investments.
Raiffeisenlandesbank Oberösterreich’s successful and stable
development, even in times of financial crisis, strengthened the
trust that customers and investors place in the bank as a competent and reliable partner in securities, interest and exchange
transactions, whether as investments or as risk hedges.
The Financial Trade Center’s Raiffeisenlandesbank Oberösterreich specialists from individual trading departments and the
treasury provide personal consulting for corporate customers
on all kinds of securities investments, as well as how to manage
interest and currency risks.
The treasury and asset / liability management of Raiffeisenlandesbank Oberösterreich guarantee matching maturity refinancing of customer transactions by issuing our own shares and
other refinancing instruments, and ensure that all interest rate
and currency risks are detected in good time, are described
transparently and are evaluated daily. Building on the regular
analyses of liquidity, interest rates and currency positions performed by our independent “mid-office” and risk controlling
departments, strategic direction is performed within precisely
defined and constantly monitored risk limits and levels, according to the structure of the interest curve, interest forecasts and
risk capacity.
High liquidity reserves
Raiffeisenlandesbank Oberösterreich places the highest priority on having sufficient liquidity reserves necessary for future
49
International Submarkets/Business Areas
1,120
132
333
Africa
Australia
72
11
Number of correspondent banks: 1,668
Southern German
market

Private Banking
Medium-sized companies
Industry and Groups
Project development/financing
Venture capital and partner capital
Factoring
Leasing
Vehicle fleet management
Real estate
Travel agency
Catering
Ober.Österreich.Haus Munich
Branches in Heilbronn, Landshut, Nuremberg,
Passau, Regensburg, Ulm, Würzburg
PRIVAT BANK AG der Raiffeisenlandesbank
Oberösterreich
activ factoring AG
Invest Unternehmensbeteilungs AG
Real-Treuhand Immobilien Bayern GmbH
Raiffeisen-IMPULS-Leasing GmbH & Co KG Branches in Heilbronn, Landshut, Munich, Nuremberg, Passau, Regensburg, Ulm, Würzburg
Raiffeisen-IMPULS Fuhrparkmanagement GmbH
& Co. KG KG
Optimundus Reisebüro Passau
Czech Republic
market

Support of corporate customers
Project development/financing
Leasing
Insurance
Private bank
Travel agency
Real estate
Staff recruitment
M&A advice, subsidies
Factoring
Ober.Österreich.Haus Prague
ACG Prague, Ceske Budejovic (Mergers & Acquisitions, EU subsidy consulting, tax consulting,
accounting)
IMPULS-Leasing-Austria s.r.o. Prague, Ceske Budejovic, Brno, Pardubice, Ostrava
Raiffeisen insurance brokers Prague, Ceske Budejovice, Brno, Plzen
PRIVAT BANK AG der Raiffeisenlandesbank
Oberösterreich, Prague branch
BTU Reisebüro – Prague
Real-Treuhand Reality a.s. Prague, Ceske Budejovice, Plzen, Brno
Raiffeisenbank a.s., Prague with a total of
105 branches
Representative office
Mumbai
Raiffeisen
network banks
Raiffeisen Banka d.d., Maribor**
Raiffeisen Bank Zrt., Budapest*
Tatra banka a.s. Bratislava*
Raiffeisenbank Austria d.d., Zagreb*
Raiffeisen Bank d.d. Bosna i Hercegovina,
Sarajevo**
Raiffeisen banka a.d., Belgrade**
Raiffeisen Bank International AG, Beijing, Xiamen, London, Singapore Branch**
Raiffeisen Bank Sh. A., Tirana**
Raiffeisen Bank Aval JSC, Kiev**
Export and international financing
Focal points:
* Minority interest
50
Europe
America
Asia
Correspondent
Banking
Annual Report 2010
Eastern Europe
Raiffeisen Bank Polska S.A., Warsaw**
Raiffeisenbank (Bulgaria) E.A.D., Sofia**
ZAO Raiffeisenbank, Moscow**
Priorbank JSC, Minsk**
Raiffeisen Bank Kosovo JSC, Pristina**
Raiffeisen Bank S.A., Bucharest**
RB International Finance (USA) LLC, New York**
Raiffeisen Malta Bank plc, Sliema**
RZB London Branch**
RZB Singapore Branch**
RB International Finance (Hong Kong) Ltd.,
Hong Kong*
Southeast Asia
Far East
Middle East
** Indirect shareholding in Raiffeisen Zentralbank Österreich AG
Correspondent Banks
The Group
Number of correspondent banks around the world:
1,120
333
132
72
11
1,668
worldwide
Europe 1,120
America
132
Asia333
Africa72
Australia11
51
growth. The high liquidity buffer has made an essential contribution to the bank’s ability to grow stably and sustainably over
the past years. The greatest attention was dedicated to this
fact in 2010 as well.
By issuing our own shares for private and institutional investors, and by issuing promissory notes for institutional investors,
we were able to place a primarily long-term refinancing volume
of around EUR 1.85 billion.
Investments in the bank’s own securities portfolio were managed under the aspect of high creditworthiness and liquidity.
Thus, investments were made almost exclusively in titles eligible for refinancing with central banks, which ensure a secure
refinancing basis if needed via the ECB. Raiffeisenlandesbank
Oberösterreich therefore has a large liquidity cushion in the
amount of approximately EUR 3.1 billion.
An eventful year for securities in 2010
Thanks to the economic programme and stimulating monetary
policy by the central banks, the world economy is now growing primarily from its own strength. The opportunities for a
continuation of economic improvement in 2011 look good, and
in combination with good corporate results, they should offer
positive support for the capital markets. Europe in particular is
again offering interesting opportunities in solid companies with
favourable ratings and attractive dividends.
In recent years, not only the turbulences in the stock exchanges brought changes in the securities business, the business
also experienced structural change. In addition to providing
advice, for which the customers are expecting ever higher
quality levels, the Internet is becoming increasingly more
important as a platform for information and also for placing
orders.
For that reason, the Securities Sales unit for the Raiffeisen
banks focuses particularly on employee development, based
on e-learning, and the further development of new Internet
strategies.
The interaction of experienced and well trained securities experts, suitable information technologies and a well functioning
channel of communications ensures that Raiffeisenlandesbank Oberösterreich can offer its customers modern securities service.
Growing interest in the “learn&invest” Securities
Academy
The need for information with regard to investing money has
never been as critical as it is today. The development in the
money and capital markets in recent years underscores the
52
Annual Report 2010
necessity to approach customers openly and provide them
with the most comprehensive information possible.
In spring 2011, Raiffeisenlandesbank Oberösterreich will start
the “learn&invest” Securities Academy for the fifth year in a
row. The academy has become a popular meeting place for
interested investors. The modular series of seminars can be
completed individually or in series and is free of charge for
Raiffeisen customers.
The „learn&invest“ Securities Academy was started in Raiffeisenlandesbank Oberösterreich in 2007 with a total number
of 440 participants. The number already grew to 900 in 2010.
More income with investments of Raiffeisenlandesbank
Oberösterreich
The topic of safety in money investment has taken on a new dimension and it has become all the more important to continue
to offer customers safe and easily comprehensible products.
Raiffeisenlandesbank Oberösterreich has unified its own palette of investments and made it more transparent and manageable for customers. Depending on desire and investor
profile, customers can choose between different terms to maturity and a monthly or annual interest payment.
In these products, Raiffeisenlandesbank Oberösterreich offers
its customers not only safety but attractive returns.
Investments
For years, Raiffeisenlandesbank Oberösterreich has focused
on innovative financial instruments. In dynamic times with
many opportunities, not only loans can be used to finance
investments but rather instruments of a character similar to
shareholders’ equity of a highly diverse character should be
used. Raiffeisenlandesbank Oberösterreich has already furnished EUR 2,425 million in such venture capital.
The investments segment includes the portfolios:
banks and financial institutions,
venture and partner capital for companies in growth or succession situations as well as investments in companies of a
special location interest,
outsourced companies whose points of emphasis are not
directly in the area of classical bank services and
real estate/PPP investments.
For example, Raiffeisenlandesbank Oberösterreich has assumed location responsibility for voestalpine AG, Energie AG
and Salinen Austria AG. In the case of voestalpine AG, Raiffeisenlandesbank Oberösterreich and Raiffeisenlandesbank
In connection with these activities, Raiffeisenlandesbank
Oberösterreich has made equity available to 390 associate
companies.
Investments in banks and financial institutions
This segment includes investments of Raiffeisenlandesbank
Oberösterreich in banks, insurance companies and other financial institutions and leasing companies. These strategic investments in financial institutions and national and international
banks provide a considerable strengthening of Raiffeisenlandesbank Oberösterreich’s market position. They enable it to
provide its customers comprehensive service and support in
existing and new markets.
The most important holdings in banks are:
individual financial management at the highest level and 100%
safety of deposits.
PRIVAT BANK AG has locations in Vienna, Munich, Passau, Regensburg, Ulm, Würzburg and Prague. Since October, PRIVAT
BANK AG in Prague has been offering its services in the new
OberÖsterreich.Haus Prag II.
In support of their customers, employees make use of the entire investment spectrum as well as targeted innovative financing solutions. The primary focus in all decisions is on safety,
sustainability and long-term success.
As part of the financial planning developed by PRIVAT BANK
AG, the overall financial situation of the customer is analysed
and targeted strategies are developed from this analysis, similar to the business planning process. The focus is on the sustained safeguarding of liquidity, safety, provisions and assets and
the principle of an „open product universe“ is followed consistently. Investments are made in non-speculative and longterm successful products.
PRIVAT BANK AG der Raiffeisenlandesbank Oberösterreich
KEPLER-FONDS KapitalanlagegesmbH
Oberösterreichische Landesbank AG
Salzburger Landes-Hypothekenbank AG
Raiffeisen Zentralbank Österreich AG
Raiffeisen Wohnbaubank AG
Raiffeisen Bausparkasse GesmbH
Raiffeisenbank a.s., Prague
Raiffeisenbank Austria d.d., Zagreb
Raiffeisen Bank Rt, Budapest
Center Invest Bank AG, Rostov
Krayinvestbank, Krasnodar (as of 11 March 2011)
A single central contact person at PRIVAT BANK AG who has
all the required competencies provides comprehensive and integrated support with individual solutions for investments and
customised financing solutions.
Furthermore, Raiffeisenlandesbank Oberösterreich has holding
in the following institutions and companies:
KEPLER-FONDS KAG
Raiffeisen Impuls-Leasing GmbH and 128 leasing companies
Oberösterreichische Versicherung AG
Vorsorgeholding Valida (formerly ÖPAG Pensionskassen
AG and ÖVK Vorsorgekasse AG)
PayLife Bank GmbH
HOBEX AG
Raiffeisen Kapitalanlage GesmbH
Raiffeisen-Leasing GesmbH
Wiener Börse AG
activ factoring AG
PRIVAT BANK AG
Raiffeisenlandesbank Oberösterreich founded PRIVAT BANK
AG as a modern specialised bank that offers its customers
In addition to the continuity in personal attention, customers
especially value the outstanding quality of service. All customer advisers complete training towards becoming a Certified
Financial Planner (CFP).
Despite the difficult market environment, PRIVAT BANK AG
again achieved a very good result in 2010. A nearly 1.9% growth
in customers confirms the trust shown in PRIVAT BANK AG.
In the past year, KEPLER FONDS KAG established its position
as the fifth-largest KAG and was able for the first time in the
company’s history to surpass the 10 billion euro mark in managed
customer volume. Currently, EUR 10.01 billion are invested in 138
funds. Of this, the special fund and large investor funds business
for institutional customers accounts for 76 mandates; the current
volume comprises EUR 7.3 billion. Since the beginning of the year,
total volume rose by 12.48%, a significantly more robust rate than
for most rivals. A further expansion of market share from 6.51% to
6.90% was also possible by the end of 2010.
The range of funds was expanded in 2010 to include two products: On 1 March 2010, Mündelrent began – a broadly distributed pension fund with trustee security status. By year’s
end, EUR 78 million had already flowed into this security-oriented mutual fund. On 31 March 2010, KEPLER Rent 2016
was launched as a successor product to the highly successful
53
The Group
Oberösterreich Invest GmbH und Co OG together constitute
the largest private shareholder and as at year-end 2010 held
voting shares exceeding 15 per cent.
fixed-term bond fund KEPLER Rent 2014. Overall, this product
line with its fixed terms currently manages a volume of around
EUR 77 million.
HYPO Oberösterreich
HYPO Oberösterreich had a stable and successful financial year in 2010. The conservative business model, with its
concentration on classic banking business, was once more a
guarantee for stability and security. This allowed HYPO to delivery very good results in a continuously challenging economic
environment.
Total assets remained stable at EUR 8.5 billion; at the same
time, pre-tax profit for the year climbed to EUR 28.9 million.
In classic customer business, we were able to register growth
across all defined target groups: residential construction, physicians and freelance professions, religious and social organisations, public institutions and private individuals. Our credit
and loan volume rose by almost four per cent to EUR 5.1 million. Primary deposits increased to EUR 1.33 billion.
HYPO Oberösterreich’s solid creditworthiness and the quality
of its employees proved themselves several times over the last
year. Standard & Poor’s, the internationally renowned rating
agency, renewed its top rating for the bank: single A. The outstanding ownership structure – the state of Upper Austria is a
majority shareholder and Raiffeisenlandesbank Oberösterreich
is a strategic partner – is certainly one reason for this rating.
Furthermore, the trade publication Konsument named HYPO
Oberösterreich as the best bank in Austria for investment consulting with senior citizens.
In the financial year 2011, our goal is to maintain and further
expand our solid market position in strategic business areas.
The focus on classic banking and the strategy as an advisory bank will continue. This will further consolidate HYPO
Oberösterreich’s position as a strong and secure regional bank.
HYPO Salzburg
HYPO Salzburg was able to achieve its targets for customer
business and had a successful year in 2010.
The consistent customer focus anchored in our strategy, along
with a range of attractive products that are clearly targeted at
specific audiences, all contributed to the 2010 annual results,
as did our responsible handling of costs and risks.
The balance sheet total at HYPO Salzburg increased in financial year 2010 by about 3%, reaching a value of EUR 5.1 billion. In comparison to the previous year, the balance sheet total
grew moderately and according to plan.
54
Annual Report 2010
With net interest income of EUR 49.0 million, the previous
year’s values were not quite reached; this was due to the flattening off of the interest-rate curve and lower income in own
investments. After-tax profit for the year was EUR 5.2 million
(previous year: EUR 15.8 million). This change can be attributed
primarily to lower results from designated financial instruments
and changes in administrative expenses.
In March 2009, it was decided to issue a total amount of
EUR 25.0 million in participation capital while preserving the
subscription right of the shareholders.
The available short- and medium-term data point toward the
continuation of this positive economic development at HYPO
Salzburg in 2011. The focus in 2011 will remain on risk-conscious growth, the intensification of existing business relationships, the expansion of cross-selling, and further stepping up
of services business, especially in securities.
bankdirekt.at AG
bankdirekt.at AG is the direct bank of Raiffeisenlandesbank
Oberösterreich and specialises in first-class products for private money investment and online securities trading. Classic
investment advice is not available at bankdirekt.at AG. In this
area, bankdirekt.at AG is clearly different from the competition and offers customers an interesting package of favourable
fees, attractive interest rates and perfect service.
Bankdirekt.at exhibited significant growth in first-time deposits and securities volume in 2010. Customers appreciate the
simple and convenient handling, the attractive conditions and
the safety of a subsidiary of Raiffeisenlandesbank Oberösterreich. Service and customer contact are among the essential
success factors of bankdirekt.at. The March 2010 overhaul of
the entire external presentation of bankdirekt.at AG represents
a major point in the bank’s development.
Several supportive measures during the course of 2010, such as
the continuation of successful customer events, further intensification of marketing (i.e., entering the area of social media),
and the preparation for the stock market game that takes place
in the first quarter of 2011, all increase brand recognition and
lend credence to the claim, “You deserve a specialist.”
Raiffeisen-IMPULS-Leasing has a track record of more than
25 years of success, and it further expanded its position of
market leadership in all segments of the Upper Austrian leasing
market in 2010.
Raiffeisen-IMPULS Leasing is regarded as the regional leasing provider in Upper Austria with a portfolio of approximately
Konzernlagebericht 2010
The results in the auto/movable leasing area were especially
pleasing. Market share in Upper Austria increased to nearly
18%. Raiffeisen-IMPULS-Leasing is the market leader in the
leasing of movables in Upper Austria. The number of newly
concluded auto leasing contracts increased year-on-year by
9%, while auto registration numbers in Austria only increased
by 2.2%.
Raiffeisen-IMPULS-Leasing has serviced commercial customers in Bavaria through a wholly owned subsidiary since 1993
and also in Baden-Württemberg since 2008. Raiffeisen-IMPULS-Leasing is the only Austrian leasing company that can
offer customers a complete range of leasing services including
vehicle fleet management.
Furthermore, the leasing group of Raiffeisenlandesbank Oberösterreich is currently represented in six Eastern European
countries – Poland, Czech Republic, Slovakia, Hungary, Croatia and Romania – with a total of 30 branches. In the 2009
financial year, the “IMPULS-LEASING International Aktiengesellschaft” was fully consolidated for the first time and included
in the consolidated financial statements of Raiffeisenlandesbank Oberösterreich. For the customers of Raiffeisen Banking
Group Upper Austria, this means that they will receive the accustomed, comprehensive support in everything having to do
with leasing provided by the company‘s own employees who
are highly familiar with all the peculiarities of the local market.
activ factoring AG
Through its subsidiary, activ factoring AG, Raiffeisenlandesbank Oberösterreich offers its corporate customers a modern
and future-oriented form of financing as a supplement to classic bank financing.
Raiffeisenlandesbank Oberösterreich has thus established new
benchmarks in supportive company finance and has responded to the steady increase in demand for factoring services.
Activ factoring AG is not only successful in its traditional markets of Austria and Germany, it actually purchases receivables
around the world.
The combination of pre-financing, the assumption of 100%
hedging against receivable defaults together with active debtor management offers forward-looking companies a flexible
financing and services instrument.
In 2010, factoring sales came to EUR 1.7 billion (previous year:
EUR 1.3 billion).
Real-Treuhand Management GmbH
Raiffeisenlandesbank Oberösterreich’s real estate specialist
develops and implements customised real estate projects in
accordance with individual requirements, ranging from the revitalisation of town centres to urban planning, from town houses
to multi-functional office buildings.
Two projects in ideal locations are underway the centre of Linz:
the Linz Blumau Tower was finished, with over 11,000 m² of
modern office space, and the residential projects LINZ.punkt
was started. The LINZ.punkt project offers great infrastructure for private and professional life with over 110 residential
units and about 10,200 m² of living area in the middle of the
city (www.linz.punkt.at). Two additional office units with 4,500
m² and three commercial units with 550 m² are also under
construction.
In cooperation with Upper Austrian communities, the RealTreuhand emphasises its regional responsibility with 257 building development projects in various stages of completion.
WAG
WAG was established in 2004 as part of a privatisation. The
company has non-profit roots and is Upper Austria‘s largest
real estate company.
The fixed assets include approximately 22,500 rented flats and
63,000 m² of rented commercial space, more than half of the
holdings being located in Linz. The other properties are spread
out over four provinces (Upper Austria, Lower Austria, Styria
and Salzburg). WAG manages more than 34,000 units; sales
were EUR 99.2 million and investments reached EUR 30 million
in the financial year 2010.
GRZ IT Group
The range of products and services offered by the GRZ IT
Group extends (not only in the finance sector) from computing
centre operation and software development to the development and maintenance of complex IT and telecommunications
infrastructures – all state of the art.
With approximately 700 employees, the GRZ IT Group‘s Linzbased companies GRZ IT Center, LOG IS IT Service, RACON
Software and RACON West in Innsbruck not only provide complete IT services for all Raiffeisen banks in Upper Austria and
Tyrol, they also supply many other banks and banking groups
all over Austria with software and IT Services. These include
Raiffeisen Banking Group Carinthia, the Hypothekenbanken
Oberösterreich and Salzburg, VKB Bank AG and the other
Raiffeisen Banking Groups in the provinces.
55
The Group
81,800 agreements, reflecting an approximately 5% increase
compared to the previous year. Inventory volume including leasing contracts amounted to EUR 2.585 billion in 2010.
With regard to the software products targeted to customers
of the serviced banks, more than a million electronic banking
users already use the systems of the GRZ IT Group. In the corporate customer segment of electronic banking, the savings
bank group including Erste Bank AG, BAWAG/PSK Group and
3-Banken-gruppe with Oberbank AG use the products of the
GRZ IT Group.
Raiffeisenlandesbank Oberösterreich undertakes global functions, but also regards itself as an integrative hub within the
Raiffeisen association. Raiffeisenlandesbank Oberösterreich
advises the Raiffeisen banks in business-related, organisational and legal affairs, supports them in their sales work, and
provides the training and education system.
Bundling of forces
Since 2010, the companies of the GRZ IT Group have been the
leading partner of the federal “IT harmonisation” effort in the
Austrian Raiffeisen Banking Group. The core of IT harmonisation is the standardisation of software solutions for the Raiffeisen primary level, which implements solutions from RACON
Software GmbH as the general basic bank software. It has
been decided that all of the peripheral systems in the basic
bank software be harmonised step-for-step. To reach this goal,
RACON Software GmbH is cooperating closely with Raiffeisen
Software Solution and Service GmbH, Vienna, which will contribute to major parts of the overall project.
Corporate Center
In the segment called Corporate Center/Consolidation/Other,
consolidation processes are shown across segments, as well
as revenue and yields where the content does not fit into any
other segment. In this segment, one-time special effects are
also recorded which would otherwise distort the results of
other segments.
The divisions included in the Corporate Center help present a
clear segment structure, as the results from the other business
fields can be illustrated in a well laid-out and clear manner.
Associative activities mean success
As the most important supplier of local financial services, Raiffeisen Upper Austria‘s strong and healthy structure facilitates a
special customer orientation and dynamic support to customers through creative financial services. Above all, Raiffeisenlandesbank Oberösterreich‘s strength and success derive from
its principles of subsidiarity and solidarity.
The Upper Austrian Raiffeisenbank Group is a strong association. It is not only in a position to jointly cover all banking
sectors, but also to set new benchmarks in banking and business. As owners of the Raiffeisenlandesbank Oberösterreich,
the Upper Austrian Raiffeisen banks exercise their ownership
right over the Raiffeisenlandesbank cooperative association.
The cooperative spirit is decisive with this: Regardless of
its size, each cooperative has a vote. In doing so, Raiffeisen
Upper Austria relies on the subsidiarity principle: Whatever
the Raiffeisen banks are able to provide locally shall not be
taken over by the superordinate association. As a corporation,
56
Annual Report 2010
Raiffeisen Banking Group Upper Austria bundles its forces.
This focus on requirements and needs of the customers is
unique. We achieve a balance between local roots and global
support for our customers. These networked activities are possible due to the contemporary and modern structure of Raiffeisen Upper Austria. The association becomes active wherever
Raiffeisen banks require support, in order to be able to accompany their customers with all of their projects in the best
possible manner. Through this, the regional strength and direct
customer relationship are maintained. In addition, the cooperation in the association ensures security, power and dynamics
of Raiffeisen in Upper Austria.
Selected association instruments of the
Raiffeisen Banking Group Upper Austria
Raiffeisen Customer Guarantee Fund OÖ
T he security of the savings deposits is the top priority of Raiffeisen Banking Group Upper Austria. Through
the Raiffeisen Customer Guarantee Fund OÖ, the customer
deposits with Raiffeisen Upper Austria are 100% secured,
far beyond the legal deposit insurance.
Raiffeisen-Kredit-Garantieges.m.b.H.
For standardised risk management in the entire Raiffeisen
Banking Group Upper Austria, through assistance by assuming guarantees, securities and other indemnities for loans,
if the individual Raiffeisenbank is not able to provide this
itself.
Upper Austrian Raiffeisen Solidarity Association
Sector institution to support co-owners who have fallen on
hard times through no fault of their own.
Benevolent Society for Upper Austrian Raiffeisen Banks
Cooperative institution for the provision of capital and underwriting of shares.
Targeted marketing, customised products
The many strengths of Raiffeisen in Upper Austria include
targeted marketing and customised products. In their activities, the Raiffeisen banks receive significant support from
the marketing, product and sales departments of Raiffeisenlandesbank Oberösterreich. The marketing committee
actively integrates the Raiffeisen banks in all strategic mar-
Konzernlagebericht 2010
Upper Austrian Marketing Association
The budgetary assurance of the marketing plan and its implementation on the basis of resolutions by the Association
and Marketing Committee are handled in the Upper Austrian Marketing Association.
Spring and Autumn Campaign
During the annual Spring and Autumn Campaign, the strategic focuses are explained, marketing measures presented,
targets defined and new developments described to employees and employee representatives of the Raiffeisenbanken
Group Upper Austria.
(WBT), pioneering technology and the consistency of the training and development strategy as special strengths.
Multimedia training programme
The learning platform and the „Multimedia Training“ segment
was expanded to keep Raiffeisen customer advisers up-todate about current topics. Since year-end 2009, it has been a
fixed component of the customised training and development.
„Multimedia Training“ means that a seminar is transmitted live
via the Internet. Employees all over Austria can participate in a
seminar presented in the Raiffeisenlandesbank Oberösterreich
in Linz by connecting to the Internet at their workstations. Both
employees and the operating departments have received this
system positively, not least because it is an efficient and uncomplicated way of conveying knowledge in a quick and concise manner.
Trend-setting training system
Raiffeisenlandesbank Oberösterreich assigns a very high value
to life-long learning. To support the company‘s training and
development, we use a customised e-learning system that has
received the European e-learning Award.
Certification
Certifying our customer advisors guarantees that employees
are aware of the latest information. Accordingly, every advisor
must have their knowledge assessed every five years. This is
not just a test of basic knowledge but also of the current economic situation.
Raiffeisenlandesbank Oberösterreich‘s high training standards
are attested by the renewed certification by the LIMAK Johannes Kepler University Business School and the Research Institute for Banking and Finance at the Johannes Kepler University
Linz. The 2009 re-certification focused primarily on efficient
and sustainable multimedia e-learning, Web-based training
The advisers prepare for the assessment by using the WBT
learning platform and scripts. The certificate obtained after
passing the test shows the customers that their advisors are
optimally qualified.
57
The Group
keting decisions. The subsidiaries of Raiffeisenlandesbank
Oberösterreich with their extensive services, information
and IT products are at the disposal of the Raiffeisen banks.
2. Modern Risk Management and Dynamic Assessment and Monitoring
The long-term success of Raiffeisenlandesbank Oberösterreich is largely dependent upon active risk management. In
order to achieve this target, risk management was implemented with structures that facilitate the identification and measurement of all risks (market, credit, liquidity and operational
risks) and their active managerial counteraction.
The Managing Board’s overall risk strategy ensures that risks
remain synchronised and in line with the strategic orientation of
the company. The Managing Board and the Supervisory Board
are regularly informed.
With regard to the explanations of the total financial risks in
Raiffeisenlandesbank Oberösterreich Group and the goals and
methods of risk management, please refer to the comprehensive risk report in the Notes.
The internal control system for the accounting process
Through an effective internal control system, the Managing
Board of Raiffeisenlandesbank Oberösterreich ensures that
transactions are properly reflected in the accounting.
The internal control system for the accounting process is designed to ensure reasonable reliability in the preparation and
truthful presentation of published annual financial statements
and financial information in conformity with the legal provisions of the Austrian Banking Act and the Austrian Business
Code. In this connection, the Supervisory Board and Managing
Board rely on experts, in particular the organisational units Finance and Accounting and Controlling. The Supervisory Board
is responsible for monitoring the effectiveness of the internal
control system.
The Managing Board of Raiffeisenlandesbank Oberösterreich
makes sure that there a verifiably effective and appropriate internal control system for the financial reporting process. The
responsibilities for individual components and process steps
associated with financial reporting are clearly defined and assigned to specific organisational units. The implementation of
the internal control system for the financial reporting process
is laid out in administrative procedures.
The defined controls such as dual control, review of data quality and plausibility checks make the internal control system
an integrated component of technical and organisational processes. The internal control system combines risk and compliance and ensures that adequate controls are implemented
and properly executed based on defined risks. The separation
of sensitive activities is supported by restricted distribution of
IT permissions.
The cornerstone of the internal control system is the regular
exchange of information and data relevant to the financial reporting process within each organisational unit.
Internal auditing independently and regularly checks for compliance with internal regulations, including in the accounting
department. The head of internal auditing reports directly to
the Managing Board.
3. Results After Conclusion of the Financial Year
No events of particular significance with an impact on the financial statements occurred after the close of the 2010 business year.
58
Annual Report 2010
In the context of our company and our sustainable development
strategy of eschewing financial instruments that are difficult to
trace, we favour instead an innovative approach to all kinds of
equity capital – recruited from teaching, research and application – financed via the Hagenberg International Incubator.
(development, software) to marketable maturity. Raiffeisenlandesbank Oberösterreich is committed to the Hagenberg International Incubator’s goal of supporting start-up companies,
providing equity capital to generate regional value for Upper
Austria and sustainable jobs in the high-tech sector.
Of course the bank understands that, here in our high-wage
country, we have to export intelligent people instead of industrial goods. In an age of open borders and globalising markets,
we support students at the Johannes Kepler University and
at the Hagenberg Software Park through to Raiffeisenlandesbank Oberösterreich and our customers, thereby establishing a
comfortable exchange of young people in other countries, such
as the Czech Republic, Russia or Turkey.
The Hagenberg International Incubator offers “all-round consultancy” and support for national and international start-up
companies to be able to grow their IT-related business idea
5. Prospective Trends
In 2011 Raiffeisenlandesbank Oberösterreich will remain a dependable and predictable partner for its customers, and will
continue to post profits. The fundamental principles in terms
of our special orientation towards customers, including sustainability, transparency, security and trust, will continue to be
held high, and our risk capacity will be expanded further. Tight
cost and income management ensures that the cost-income
ratio will be further optimised and accordingly the Bank‘s positive creative power can be increased. The present data provide
the best indication that Austria’s strongest regional bank will
continue on its successful path, providing support and advice
on-site to customers about their plans and projects, as well as
their export business.
Raiffeisen special economic programme continues
Ties to special export successes
Adequate liquidity reserves
According to forecasts, the Austrian export ratio will continue
to climb in 2011, and export-oriented businesses will be able to
tie in their successes from 2007. Export successes are an essential pillar of Austria‘s solid economic development, which is
why continued increases in exports are absolutely necessary.
Eastern Europe and Asia are still very important export markets. In order to provide optimal service and support, Raiffeisenlandesbank Oberösterreich offers its customers a powerful
and ever-expanding global network of correspondence banks
and cooperative banks.
Due to the large capital resources available and adequate liquidity reserves, Raiffeisenlandesbank Oberösterreich can offer
optimal support to its customers and their projects and provide
them with global support. Further increases in customer financing are also clearly in focus. For this purpose, Raiffeisenlandesbank Oberösterreich will continue to fine-tune its financing
models for long-term performance and sustainability.
In addition to the export economy, Austria needs a stable
domestic economy. This is why Raiffeisenlandesbank Oberösterreich began a renovation and revitalisation campaign in
2009 that will continue in 2011. In the context of this Raiffeisen
special economic programme for domestic businesses, above
for small- to medium-sized firms in Upper Austria, single- and
multi-family homes as well as town, market and city centre buildings are revitalised and renovated for thermal efficiency. This
has generated added value in the amount of around EUR 853
million thus far. This means not only important orders for businesses, but also climate protection.
Austria‘s strongest regional bank in the prosperous Austria-Southern German-Czech Republic economic region
59
The Group
The declared goal of Raiffeisenlandesbank Oberösterreich
is to contribute to the stabilisation of the money and capital
markets. We have developed modern simulation and computer programs for company treasuries with the Johannes Kepler
University and the Fuzzy Logic Laboratory at the Hagenberg
Software Park. Moreover, we know that public budgets for infrastructure projects (streets, rails, modern hospitals, etc.) are
not as well-suited as public-private partnership models in all of
their possible facets.
will overcome the challenges of 2011; Raiffeisenlandesbank
Oberösterreich‘s ongoing upward trend of recent years provides the foundation, as does a strategy based on unique customer commitment, close customer relationships, and a business
policy oriented towards sustainability and stability.
The long-term success of Raiffeisenlandesbank Oberösterreich is also dependent upon active risk management. In order
to achieve this target, risk management was implemented with
structures that facilitate the identification and measurement of
all risks (market, credit, liquidity and operational risks) and their
active managerial counteraction.
60
Annual Report 2010
Linz, 28 March 2011
Europaplatz 1a, 4020 Linz
The Group
THE MANAGING BOARD
Ludwig Scharinger
Hans Schilcher
Georg Starzer
Michaela Keplinger-Mitterlehner
Markus Vockenhuber
61
IFRS Consolidated
Financial Statements 2010
Aktiengesellschaft, 4020 Linz, Europaplatz 1a
Income Statement
Balance Sheet
Statement of Changes in Equity
Cash Flow Statement
Notes
The Company
The Basics of the Consolidated Accounts According to IFRS
Accounting Policies
Segment Reporting
Risk report
Other information
Information based on Austrian accounting practices
The Members of the Board of
Audit Certificates
Consolidated
Financial Statements
62
Annual Report 2010
Consolidated Financial Statements 2010
Notes
Interest and interest-related income
Interest and interest-related expenses
Result of companies that are accounted for at equity
2010
2009
in EUR ‚000
in EUR ‘000
1,059,764
- 686,988
1,309,364
- 797,052
407,074
52,968
Net interest income
(1)
779,850
565,280
Risk provisions
(2)
- 126,691
- 185,317
653,159
379,963
Fee and commission income
157,938
138,487
Fee and commission expenses
- 50,578
- 49,427
107,360
89,060
(3)
Trading profit
(4)
11,438
22,115
(5)
20,668
- 16,331
(6)
- 20,812
- 28,781
11,294
- 22,997
- 289,501
(7)
- 533,361
(8)
279,443
62,490
517,895
219,015
63,182
581,077
- 20,639
198,376
574,766
189,001
6,311
9,375
Profit for the year
of which shareholders' equity
of which minority interests
(9)
The Group
Income Statement
63
2010
in EUR ‘000
2009
in EUR ‘000
581,077
21,141
19,697
198,376
79,629
10,699
(29)
- 2,628
478
- 696
- 1,181
- 905
889
(29)
- 4,628
33,155
- 19,840
69,500
Consolidated result
614,232
267,876
602,610
245,698
11,622
22,178
Notes
Profit for the year
Change in value of AfS securities
Other profit from companies accounted for at equity
Change in value from the hedging of net investments
Currency differences
(29)
Other changes
Taxes recorded on this amount
Total of other results
64
Annual Report 2010
ASSETS
Cash and cash equivalents
Trading assets
Financial assets
Intangible assets
Property, plant and equipment
Investment property
Regular tax assets
Deferred tax assets
Other assets
31 Dec. 2010
31 Dec. 2009
Notes
in EUR ‘000
in EUR ‘000
(10), (11)
(10), (12), (14)
(10), (13), (14)
(10), (15)
(10), (16)
(17)
(18), (21)
(19), (21)
(19), (21)
(9)
(9)
(20)
134,640
6,868,753
18,191,936
1,560,917
6,310,818
1,649,872
55,869
246,812
74,866
62,416
73,763
299,384
202,962
7,442,496
17,422,897
1,237,794
7,456,725
654,293
69,838
239,123
48,453
58,017
89,784
448,780
35,530,046
35,371,162
Total
LIABILITIES
Provisions
Regular tax liabilities
Deferred tax liabilities
Trading liabilities
Other liabilities
Equity
Total
Notes
(10), (22)
(10), (23)
(10), (24)
(14), (25)
(9)
(9)
(10), (26)
(27)
(10), (28)
(29)
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
11,307,514
9,293,512
7,958,323
154,610
18,603
20,905
1,227,072
513,865
2,003,371
3,032,271
2,917,416
12,367,654
8,880,626
8,212,227
143,716
18,400
103,765
1,011,056
486,062
1,672,145
2,475,511
2,359,621
114,855
115,890
35,530,046
35,371,162
The Group
Balance Sheet
65
Statement of Changes in Equity
Share
capital
Participation
capital
Capital
reserves
Aggregate
results
Subtotal
Minority
interests
Total
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
Equity 1 Jan. 2010
Consolidated result
Dividends
Purchase of minority interests
253,000
0
0
0
298,765
0
0
0
697,838
0
0
0
1,110,018
602,610
- 25,899
- 18,916
2,359,621
602,610
- 25,899
- 18,916
115,890
11,622
- 2,035
- 10,622
2,475,511
614,232
- 27,934
- 29,538
Equity 31 Dec. 2010
253,000
298,765
697,838
1,667,813
2,917,416
114,855
3,032,271
Share
capital
Participation
capital
Capital
reserves
Aggregate
results
Subtotal
Minority
interests
Total
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
253,000
0
0
0
298,765
0
0
0
697,838
0
0
0
894,953
- 2,873
245,698
- 27,760
2,144,556
- 2,873
245,698
- 27,760
68,596
18,705
22,178
- 557
2,213,152
15,832
267,876
- 28,317
0
0
0
0
0
6,968
6,968
253,000
298,765
697,838
1,110,018
2,359,621
115,890
2,475,511
Equity 1 Jan. 2009
Change in the basis of consolidation
Consolidated result
Dividends
Capital increase at subsidiaries
Equity 31 Dec. 2009
66
Annual Report 2010
2010
2009
in EUR ‘000
in EUR ‘000
581,077
198,376
61,144
61,593
- 19,845
241,802
- 3,500
- 86,214
- 1,027,819
680,235
- 274,013
- 2,930
- 10,427
- 23,859
- 265,958
- 1,157,426
561,038
- 107,884
- 573,756
- 286,141
- 149,967
110,622
- 654,409
95,369
- 238,340
- 3,793
86,214
1,027,819
- 680,235
- 6,098
- 709,386
- 1,461,054
17,440
36,665
673,457
77,035
551,166
- 46,465
265,958
1,157,426
- 561,038
- 847
135,987
Cash proceeds from the sale of:
Financial assets and shares in companies
Property and equipment, financial real estate and intangible assets
Payments to acquire:
1,586,480
6,813
1,414,883
2,726
Financial assets and shares in companies
Property and equipment, financial real estate and intangible assets
Acquisition of subsidiaries (minus acquired funds)
Cash flow from investing activities
- 1,147,127
- 70,206
0
375,960
- 1,741,318
- 37,422
- 15,601
- 376,732
1,317
322,577
- 30,856
- 27,934
265,104
6,968
283,241
0
- 28,317
261,892
202,962
- 709,386
375,960
265,104
134,640
181,815
135,987
- 376,732
261,892
202,962
Profit for the year
Non-cash items contained in the profit for the year and transition to the cash flow
from operating activities:
Write-offs/write-ups of property, equipment and financial assets, dealing securities, intangible assets and financial real estate
Reversal/allocation of reserves and risk provisions
Profit/loss from sale of property, equipment and financial assets, dealing securities, intangible assets and financial real estate
Dividends received
Interest received
Interest paid
Initial consolidation effect RZB Group
Other adjustments due to non-cash items
Subtotal
Change in assets and liabilities from operative business after correcting for non-cash
components:
Loans and advances to banks and customers
Trading assets
Other assets
Amounts owed to banks and customers
Trading liabilities
Other liabilities
Dividends received
Interest received
Interest paid
Taxes on income paid
Cash flow from operating activities
Capital increase
Income and payments from subordinate capital
Purchase of minority interests
Dividends
Cash at the end of the previous period
Cash flow from operating activities
Cash and cash equivalents at the end of the previous period
The Group
Cash Flow Statement
Cash includes the balance sheet item “cash reserves” which consists of the cash in hand and balances payable on demand at
central banks.
67
Notes
The company
Raiffeisenlandesbank Oberösterreich Aktiengesellschaft (hereinafter: Raiffeisenlandesbank Oberösterreich) acts as a regional central institution of the Raiffeisen Banking Group Upper
Austria and is recorded in the Commercial Register at the District Court in Linz under the number FN247579m. The headquarters is in Austria, at Europaplatz 1a, 4020 Linz.
Shareholders of Raiffeisenlandesbank Oberösterreich are the
registered Genossenschaft m.b.H. Oberösterreich RLB Holding with a portion of the share capital amounting to 48.81%
(ordinary shares) and the registered co-operative association
Raiffeisenbankengruppe Oberösterreich Verbund with 51.19%
(preferred shares). The latter co-operative is the uppermost
parent company of the Group. The Upper Austrian Raiffeisen
banks make up the most important owner groups of the two
co-operatives. These two are supported by Raiffeisenlandesbank Oberösterreich in its function as Upper Austrian headquarters in all banking matters.
As a superordinate banking institute, starting with the financial 2007 year, Raiffeisenlandesbank OÖ is obliged to prepare
consolidated financial statements in accordance with the IAS
Regulation (EC) 1606/2002, abiding by the regulations of the
International Financial Reporting Standards (IFRS). In addition,
notes and explanations are required in accordance with the national regulations of the Austrian Banking Act and the Austrian
Business Code.
The basics of the consolidated accounts according to IFRS
Principles
These consolidated financial statements for the 2010 financial
year as well as the comparative figures from 2009 were prepared in compliance with the applicable International Financial
Reporting Standards (IFRS) as published by the International
68
Annual Report 2010
Accounting Standards Board (IASB) and international accounting and financial reporting standards based on the IAS Regulation (EC) 1606/2002 as adopted by the EU.
Unless noted otherwise, the figures in these financial statements are quoted in EUR thousands.
The following new or modified standards and interpretations
were already published as at the balance sheet date, however,
they have not yet come into effect with regard to the financial
year starting on 1 January 2010 and were not applied in these
consolidated financial statements:
Standard/Interpretation
Amendment to IAS 32 (“Financial instruments: Presentation") – Classification of
Rights Issues
IFRIC 19 (“Extinguishing financial liabilities with equity instruments”)
Amendment to IFRS 1 – Limited exemption for first-time adopters of
comparative IFRS 7 disclosures
Improvements to IFRSs 2010 (May 2010)
Revision of IAS 24 – (“Disclosure of relationships to related
companies and persons”)
Amendment to IFRIC 14 – Prepayments in the context of
minimum funding requirements
Amendment to IFRS 7 (“Financial instruments: Disclosures”)
Amendment to IFRS 1 – Severe hyperinflation and fixed transition dates
Amendment to IAS 12 – Deferred taxes: Recovery of underlying assets
IFRS 9 (“Financial instruments”)
Mandatory for
Financial year
beginning
Already adopted
by the EU
1 Feb. 2010
yes
1 July 2010
1 July 2010
yes
yes
1 July 2010
1 Jan. 2011
yes
yes
1 Jan. 2011
yes
1 July 2011
1 July 2011
1 Jan. 2012
1 Jan. 2013
no
no
no
no
The Group
Not yet mandatory application of IFRS
No material effects are expected on future consolidated financial statements as a result of the application of the standards (except IFRS 9 „Financial Instruments“) and interpretations listed. IFRS 9 provides new rules for the classification and measurement
of financial assets. At the present time, it is not possible to estimate the impact on future financial statements due to planned
additional changes for financial instruments (e.g. hedge accounting, netting impairment, effective interest method, etc.) and due
to the exceptionally long time horizon (to be applied starting in financial year 2013).
69
Consolidation methods
The starting point for preparing the consolidated balance sheet
and the group income statement is the sum of the separate
financial statements of the subsidiaries included in the consolidated financial statements. Subsidiaries are companies on
which Raiffeisenlandesbank Oberösterreich exercises a controlling influence on their business and financial policies.
The individual financial statements of the fully consolidated
subsidiaries are prepared in accordance with IFRS regulations
and are based on the uniform accounting principles applied
throughout the group. The balance sheet date of the fully consolidated companies is 31 December with the exception of four
leasing companies that are included as of 30 September. The
selection of a date for these companies that differs from that of
the parent company guarantees that the financial statements
can be prepared and audited without delay. Three subsidiaries prepare their financial statements as at 28 February, 30
June and 31 October, and file an IFRS interim report as at 31
December.
As of 1 January 2010, in the course of capital consolidation,
when initial control commences net assets acquired at fair
value will be calculated against the amounts paid, at most with
shares already owned and assessed at fair value and the value
of shares of non-controlling shareholders at the time at which
control is obtained. The valuation method for shares held by
non-controlling shareholders is typically calculated as their
share of fair value net assets of the acquired company. A positive difference is applied as goodwill. Goodwill is not subject
to scheduled depreciation but rather is subject to an annual
impairment test according to IAS 36. Company acquisitions
before 1 January 2010 are subject to the corresponding valid
regulations and continued in this form under the transitional
regulations of IFRS 3.
Intercompany profits are eliminated if they are not of minor significance for the items of the income statement. Banking transactions between the individual companies of the Group are
transacted at market conditions.
are accounted for at equity and recorded in a separate balance sheet item. The proportionate profit and losses from
companies accounted for at equity are also shown separately
in the income statement. When applying the equity method the
same basic approach is used in accounting for acquisitions as
is used for a fully consolidated company.
In the course of the debt consolidation, loans and advances
within the group are set off against internal liabilities. Expenses
and income resulting from transactions between companies in
the full scope of consolidation are eliminated in the course of
the expense and income consolidation.
Consolidated companies
The scope of consolidation was determined according to the
terms of IAS 27, taking the principle of materiality into consideration. Materiality in this sense is determined according
to criteria applied uniformly throughout the group, focussing
on the effect of the inclusion or non-inclusion of a subsidiary
on the representation of the group’s assets, financial position
and profitability. Because of their minor significance for assets,
financial position and profitability, 219 subsidiaries were not
included and 64 associates were not accounted for at equity.
For the IFRS financial statements as at 31 December 2010, the
scope of consolidation of Raiffeisenlandesbank Oberösterreich
includes 60 fully consolidated companies (incl. Raiffeisenlandesbank Oberösterreich). Seven additional companies were
accounted for at equity. Of the 67 companies, 47 are based
in Austria and 20 abroad. Of the fully consolidated companies, 5 are banks, 16 are financial institutions and 39 are other
companies.
The following list shows the material subsidiaries and associates. An overview of all holdings of the Raiffeisenlandesbank
Oberösterreich Group (information according to §265 (2) of the
Austrian Business Code) has been prepared separately. This
list is available at the headquarters of the parent company. At
the Raiffeisenlandesbank Oberösterreich Aktiengesellschaft
Foundation, it will be possible to appoint the majority of the
members of the foundation‘s managing board.
Associates are companies on which the group exercises a significant influence on business and financial policy. There is
usually a significant influence when the holdings amount to
between 20% and 50%. Material investments in associates
70
Annual Report 2010
Fully consolidated subsidiaries
Raiffeisenlandesbank Oberösterreich Aktiengesellschaft (Group parent, 31 Dec.), activ factoring AG, Munich (100.00%, 31 Dec.),
bankdirekt.at AG (100.00%, 31 Dec.), BHG Beteiligungsmanagement und Holding GmbH (100.00%, 28 Feb.), DAILY SERVICE
Tiefkühllogistik Gesellschaft m.b.H. & Co.KG (95.00%, 31 Dec.), efko Beteiligungs GmbH (95.00%, 31 Dec.), efko Frischfrucht
und Delikatessen GmbH (48.45%, 31 Dec.), EXIMO Agro-Marketing Aktiengesellschaft, Hamburg (95.00%, 31 Dec.), Gesellschaft
zur Förderung agrarischer Interessen in Oberösterreich GmbH (95.00%, 31 Dec.), Gourmet Menü-Service GmbH (95.00%, 31
Dec.), Gourmet Menü-Service GmbH & Co KG (95.00%, 31 Dec.), GRZ IT Center Linz GmbH (96.19%, 31 Dec.), Hypo Holding
GmbH (79.37% ,30 June), IB-RT IMMOBILIEN Beteiligungs Real-Treuhand Portfoliomanagement GmbH & Co KG (100.00%, 31
Dec.), IMPULS-ALPHA d.o.o., Zagreb (99.40%, 31 Dec.), IMPULS-DELTA d.o.o., Zagreb (99.40%, 31 Dec.), IMPULS-INSURANCE
POLSKA Sp.z.o.o., Warschau (89.46%, 31 Dec.), IMPULS-LEASING d.o.o., Zagreb (99.40%, 31 Dec.), IMPULS-LEASING Hungaria
Immo Truck Zrt., Budapest (99.40%, 31 Dec.), IMPULS-LEASING Hungaria Kft., Budapest (99.40%, 31 Dec.), IMPULS-LEASING
Hungaria Zrt., Budapest (99.40%, 31 Dec.), IMPULS-LEASING International Aktiengesellschaft, Pfäffikon SZ (99.40%, 31 Dec.), IMPULS-LEASING Polska Sp.z.o.o., Warschau (89.46%, 31 Dec.), IMPULS-LEASING Romania IFN S.A., Bukarest (89.46%, 31 Dec.),
IMPULS-LEASING Services S.R.L., Bukarest (89.46%, 31 Dec.), IMPULS-LEASING Services s.r.o., Bratislava (94.43%, 31 Dec.),
IMPULS-LEASING Slovakia s.r.o., Bratislava (94.43%, 31 Dec.), INCOM Private Equity GmbH, Passau (100.00%, 31 Dec.), Invest
Holding GmbH (100.00%, 31 Dec.), IVH Unternehmensbeteiligungs GmbH & Co OG (100.00%, 31 Oct.), Kapsch Financial Services
GmbH (74.00%, 30 Sept.), KARNERTA GmbH (95.00%, 31 Dec.), KEPLER-FONDS Kapitalanlagegesellschaft m.b.H. (64.00%, 31
Dec.), KULINARIK Beteiligungs-GmbH & Co OG (95.00%, 31 Dec.), Kulinarik Gastronomie und Frischküche GmbH (95.00%, 31
Dec.), LANDHOF GesmbH & Co KG (95.00%, 31 Dec.), LOGIS IT Service GmbH (73.10%, 31 Dec.), machland obst- und gemüsedelikatessen gmbh (49.48%, 31 Dec.), MARESI Austria GmbH (88.07%, 31 Dec.), MARESI Trademark GmbH & Co KG 95.00%, 31
Dec.), ML Management AG, Pfäffikon SZ (99.40%, 31 Dec.), PRIVAT BANK AG der Raiffeisenlandesbank Oberösterreich (100.00%,
31 Dec.), Privatstiftung der Raiffeisenlandesbank Oberösterreich Aktiengesellschaft (31 Dec.), Raiffeisen-IMPULS-Finance & Lease
GmbH, Passau (100.00%, 31 Dec.), Raiffeisen-IMPULS-Immobilien GmbH (100.00%, 30 Sept.), Raiffeisen-IMPULS-Leasing Gesellschaft m.b.H. (100.00%, 31 Dec.), Raiffeisen-IMPULS-Leasing GmbH & Co KG, Passau (100.00%, 31 Dec.), Raiffeisen-IMPULSMobilienleasing GmbH (100.00%, 30 Sept.), Raiffeisen-IMPULS-Realitätenleasing GmbH (100.00%, 30 Sept.), RB Prag Beteiligungs
GmbH (100.00%, 31 Dec.), RealRendite Immobilien GmbH (100.00%, 31 Dec.), REAL-TREUHAND Management GmbH (100.00%,
31 Dec.), RLB OÖ Sektorholding GmbH (100.00%, 31 Dec.), RLB OÖ Unternehmensholding GmbH (100.00%, 31 Dec.), RVD
Raiffeisen-Versicherungsdienst Gesellschaft m.b.H. (75.00%, 31 Dec.), SALZBURGER LANDES-HYPOTHEKENBANK AKTIENGESELLSCHAFT (54.68%, 31 Dec.), SENNA Nahrungsmittel GmbH & Co KG (95.00%, 31 Dec.), VIVATIS Capital Invest GmbH
(95.00%, 31 Dec.), VIVATIS Capital Services registrierte Genossenschaft mit beschränkter Haftung (95.00%, 31 Dec.), VIVATIS
Holding AG (95.00%, 31 Dec.)
Companies consolidated at equity
Beteiligungs- und Wohnungsanlagen GmbH (46.00%, 31 Dec.), Oberösterreichische Landesbank Aktiengesellschaft (38.57%, 31
Dec.), Österreichische Salinen Aktiengesellschaft (41.25%, 30 June), Raiffeisen Zentralbank Österreich Aktiengesellschaft (14.94%,
31 Dec.), Raiffeisenbank a.s., Prag (25.00%, 31 Dec.), Raiffeisenlandesbank Oberösterreich Invest GmbH & Co OG (49.00%, 30
Sept.), ZRB Beteiligungs GmbH (20.00%, 31 Dec.)
Changes in the scope of consolidation and their effects
The number of fully consolidated companies accounted for at equity developed during the financial year as follows:
Fully consolidated
As at 1 January
Included for the first time during the reporting year
Merged in the reporting year
As at 31 December
2010
2009
60
4
4
60
28
32
60
Equity method
2010
6
1
7
2009
6
6
71
The Group
IMPULS-INSURANCE POLSKA Sp.z.o.o. and Raiffeisen-IMPULS-Finance & Lease GmbH were included in the IFRS basis
of consolidation for the first time in 2010. The absorption of IVH
Unternehmensbeteiligungs GmbH & Co OG and IMPULS-ALPHA d.o.o. are newly founded companies in financial year 2010.
Due to merger or absorption into fully consolidated companies,
the list of fully consolidated subsidiaries has been reduced by
four companies: Invest Holding GmbH & Co KG, Events & more
GmbH, RLB OÖ Hybrid Kapital GmbH, and RLB OÖ Sektorbeteiligungs GmbH. Furthermore, efko Beteiligungs GmbH has a
new company name (formerly VERDURA Beteiligungs GmbH).
The 2010 merger of major parts of the banking operations of
Raiffeisen Zentralbank Österreich Aktiengesellschaft (RZB)
and Raiffeisen International Bank Holding AG (RI) affected
the balance sheet of RZB shares in the consolidated financial statements of Raiffeisenlandesbank Oberösterreich. Previously, shares in the RZB Group were posted in the balance
sheet items “Financial assets” and “Other investments” as financial instruments in the sense of IAS 39. As of 1 July 2010, investments in the RZB Group will be balanced according to the
equity method under IAS 28, because there is now a significant
influence since the restructuring mentioned above took place.
The initial consolidation effect – determined from the carrying
amount and proportionate equity per 1 July 2010 – amounts to
EUR 274 million and is presented along with the proportionate
annual profit from the RZB Group in the second half of 2010 in
the companies balanced at equity results. The balance sheet
statement as of 31 December 2010 is posted in the item “companies accounted for at equity”.
Foreign currency translation
The consolidated financial statements of Raiffeisenlandesbank
Oberösterreich are presented in euros reflecting the national
currency. Financial statements of fully consolidated companies whose functional currency differs from the Group currency are translated into euros employing the modified current
rate method in accordance with IAS 21. In principle, the national currency corresponds to the functional currency. The euro
is used as the functional currency for the Romanian leasing
companies.
In applying the modified current rate method, equity is translated at historical rates while all other assets and liabilities are
translated using the corresponding rates prevailing on the reporting date (middle rate of the European Central Bank (ECB)
as at the Group balance sheet date). The items on the income
statement are translated using the average currency exchange
rates of the ECB. Currency differences resulting from the translation of the equity components using historical rates and the
translation of the income statement using average rates compared to the translation using rates prevailing on the reporting
date are recognised in the consolidated operating result with
no effect on the income statement.
The following exchange rates were used to calculate the currencies:
Prices in currency per euro
2010
Rate prevailing on the
Croatian kuna (HRK)
Polish zloty (PLN)
Romanian lei (RON)
Swiss franc (CHF)
Hungarian forint (HUF)
72
Annual Report 2010
7.3830
3.9750
4.2620
1.2504
277.9500
Average rate
7.2953
4.0126
4.2184
1.3787
276.0392
Accounting Policies
A financial instrument is a contract that is a financial asset for
the first company and, at the same time, results in a financial liability or an equity instrument in the other company. In
accordance with IAS 39, all financial assets and liabilities including all derivative financial instruments must be included in
the balance sheet. A difference is made between the following
categories:
Financial assets or liabilities that are assessed at fair value
with an effect on income; and this category is subdivided
into:
 Financial instruments held for trading
 Designated financial instruments
Available-for-sale financial assets
Held-to-maturity financial investments
Loans and receivables
Financial liabilities that are evaluated with the carried forward acquisition costs.
The purchase and sale of financial instruments is always balanced on the day of trading.
The prices quoted on the market are used to determine the fair
value of financial instruments on an active market (level 1 in the
valuation hierarchy). Essentially, stock exchange prices or external data sources (quotes from traders and brokers in liquid
markets) are used for these financial instruments. If there is no
active market available or market prices of the financial instruments are only partially available, the fair value is determined
based on quotes of individual traders or by means of accepted
valuation models based on observed market data (level 2 in the
valuation hierarchy). Should there be neither listed prices nor
sufficient observable market data available for determining the
value of the financial instruments, then the valuation parameters that are not observable on the market are estimated using
appropriate assumptions (level 3 in the valuation hierarchy).
Financial instruments held for trading
The category “financial instruments held for trading” includes
dealing securities and derivative financial instruments. They
are assessed at fair value. The financial instruments in this category are used to take advantage of short-term price fluctuations on the market or are purchased for the purpose of
economic security.
If there are positive market values including deferred interest
(“dirty price”), the financial instruments are included in the trading assets. If there are negative market values then they are
recorded under the balance sheet item of “trading liabilities”.
Interest and dividend income, refinancing costs, provisions and
changes in value of dealing securities are recorded as part of
the trading result with effect on the income statement. Changes
in the value of derivatives effect the income statement and are
shown in the results of designated financial instruments. Interest
payments connected with such financial instruments are included in the interest income or interest expenses from designated
and derivative financial instruments in the net interest income.
Designated financial instruments
(designated at fair value)
Designated financial instruments refer to those financial assets and liabilities that, at the point in time that they are first
stated in the balance sheet, are categorised or designated as
a fair value assessment with effect on the balance sheet (the
so-called fair value option). Such a categorisation can only be
made if:
The categorisation eliminates or considerably decreases
incongruences in the assessment or the approach,
The management and the performance measurement of a
portfolio of financial assets and /or financial liabilities are
done on a fair value basis according to a documented risk
management or investment strategy,
A contract contains an embedded derivative that must be
separated.
The following balance sheet items contain designated financial
instruments:
Financial assets
These financial instruments are assessed at fair value. Unrealised and realised profits and losses are recorded with effect
on the income statement as profit or loss from designated financial instruments. Interest Income or expenses from designated financial instruments are recorded under the net interest
income.
Financial assets available for sale (AfS)
These include bonds and other fixed interest securities, shares and other variable-interest securities as well as shares in
companies.
73
The Group
Financial instruments
Financial assets in this category are evaluated in accordance
with IAS 39 at fair value. The balance sheet item is recorded
under the balance sheet item “financial assets”. Changes in fair
value are shown without effect on the income statement. Changes in value that are recognised directly in the equity are transferred to the income statement if the financial asset in question
is derecognised. The same applies in the case of impairment;
the difference between the fair value and the cost of purchase
(less any repayments and amortisation) is to be recorded with
effect on income. If the reasons for impairment no longer apply,
a reversal of the impairment loss is to be carried out with effect
on the income statement if it is a debt capital instrument. However, any increases in fair value that go beyond the amount of
the reversal of the impairment loss are recorded with no effect
on the income statement. If an equity instrument is held, the
impairment is not retracted with effect on the income statement. Increases in value in later periods are therefore accounted for with no effect on the income statement. If the fair value
of an equity instrument held cannot be reliably determined, the
cost of purchase is used less possible impairment losses.
Held-to-maturity financial investments (HtM)
This category contains non-derivative financial assets with
fixed or determinable payments and a fixed term, that are quoted on an active market and held to maturity, with the exception
of those financial assets that are evaluated and designated at
the initial recognition with effect on the income statement and
those that are determined as being available for sale. Financial
assets in this category are evaluated with the carried forward
acquisition costs. Impairment in the sense of IAS 39 is recorded with effect on the income statement. Financial investments
that are included in this category are listed under the balance
sheet item “financial assets”.
Financial assets in the category “loans and receivables” are
stated at amortised cost as long as they are not placed in the
category of “designated financial instruments”. They are mainly
recorded under the balance sheet items “loans and advances
to banks” and “loans and advances to customers”. Securities
of the category „loans and receivables“ are shown in the balance sheet item „financial assets“.
Risk provisions:
Risk provisions have been made for recognisable risks among
borrowers. For some loans, standardised, defined risk provisions were created as dynamic risk provisions, on the basis
of risk groups in accordance with the „risk management“ rating model. The amount of the credit risk provision that applies
to the financial loans including the value adjustments and the
portfolio-based revaluations is subtracted from the applicable
74
Annual Report 2010
loans. The risk provision for off-balance-sheet transactions is
recognised as a provision.
Financial liabilities that are evaluated with the
carried forward acquisition costs
If financial instruments on the liabilities side are neither „financial instruments held for trading“ nor from the category of „designated financial instruments“ they are stated at amortised
cost. They are mainly recorded under the balance sheet items
“amounts owed to banks”, “amounts owed to customers”, “securitised liabilities” or “subordinated capital”.
Balancing of hedge accounting
In the financial year 2010, fair value hedge accounting was introduced in accordance with IAS 39. Hedge accounting essentially means using hedging activity (typically involving a
derivative) to offset the risk of changes in the fair value of a
balanced underlying transaction. By reporting the fair value
hedge on the balance sheet in this manner, one-sided effects
in the context of economic risks can be avoided. An essential
prerequisite is the prospectively and retrospectively traceable
and documented effectiveness of hedge accounting.
The main area of application in the Group is the hedging of
underlying transactions with fixed interest rate risks in relation
to the basic parameters of primarily identical, yet opposed derivative financial instruments (i.e., an issue with fixed coupons
and receiver swap). The objective is to reduce the volatility of
results that could occur without hedge accounting, as well as
one-sided market appraisals of derivatives that affect the results, and a market appraisal of the derivative and underlying
transaction (under the exercise of the fair value option) based
on spread changes in the underlying transaction.
Hedge accounting in the context of Fair Value Hedge Accounting is done – as for other derivative financial instruments –
in the balance sheet items “Trading assets” and “Trading
liabilities”.
Underlying transactions in the context of Fair Value Hedge Accounting are recorded above all in the following balance sheet
items:
The results from hedge accounting are presented in the consolidated profit and loss accounting under “net income from
investments”.
In the course of real repurchase transactions (repo) the group
sells assets to a contract party, at the same time agreeing to
buy them back on a certain date at a certain price. These assets remain on the balance sheet and are evaluated according
to the rules of the various balance sheet items. An obligation in
the amount of the liquidity received is posted.
In a reverse repo transaction assets are purchased together
with the obligation to sell in future. A loan in the amount of the
paid liquidity is posted. Interest expenses from repo transactions and interest income from reverse repo transactions are
accrued by the straight-line method throughout the term and
recorded under net interest income.
For non-real repurchase transactions the debtor bank has the
obligation to take the assets back but it does not have the right
to demand them back. The creditor bank makes the decision
alone as to whether it wants a retrocession.
Leasing transactions
The group differentiates between finance leases and operating leases. According to IFRS, a finance lease is essentially
when the risks associated with the property and the opportunities of an asset are transferred to the lessee. An operating
lease is a lease that is not a financing lease. For the evaluation,
substance over form at the beginning of the lease is decisive.
Changes of the lease agreement can lead to a new evaluation.
In accordance with IAS 17, the lessor in finance lease agreements records the future leasing payments and any remaining
amounts as loans and advances to lessees. Under a finance
lease, the lessor reports the assets under the respective item
of property, plant and equipment balanced by a corresponding
leasing liability on the liabilities side.
With operating leases, the leasing contracts are recognised
with an effect on income by both the lessee and the lessor.
The lessor capitalises the asset being leased less the amount
of depreciation.
Raiffeisenlandesbank Oberösterreich is both a lessor and, on
occasion, a lessee.
Intangible assets
The paid acquisition of intangible assets is accounted for at the
cost of purchase less depreciation and impairment. All intangible assets (except goodwill) exhibit a limited useful life and are
subject to straight-line amortisation over this period. The usual
useful life ranges from 1 to 20 years. There have so far been
no self-produced intangible assets that fulfilled the recognition
criteria of IAS 38.
Property, plant and equipment and investment property
Property, plant and equipment is measured at purchase or production costs less depreciation. The following terms of useful
life are usually taken as the basis for straight-line depreciation:
Movable assets
Immovable assets
Investment property
Years
1 – 24
1 – 67
6 – 90
The Group
Repurchase transactions
In the event of impairment, the greater of the two comparable
values (fair value less the cost of disposal and value in use) are
amortised pursuant to IAS 36. If the reasons for impairment
cease, then appreciation up to the cost of purchase carried
forward shall occur. The real estate objects held as financial
investments (investment property) are also stated at amortised
cost according to the relevant option in IAS 40.
Provisions
All social provisions (provisions for pensions, severance obligations and bonuses) are determined pursuant to IAS 19 - Employee Benefits - following the ‚projected unit credit method‘. The
calculations are based on a calculative pensionable age of 60
for women and 65 for men with adherence to the legal transitional regulations pursuant to the Budget Supplementary Law of
2003 as well as individual contractual particularities. Furthermore the pensionable age for women was set in consideration
of the „BVG age limits“ (Federal Law Gazette 1992/832).
A valuation interest rate of 4.0% p.a. (previous year: 5.5%) as
well as an effective pensionable salary increase of 4.0% p.a.
(previous year: 4.0%) shall form the basis of the actuarial calculation of pension obligations. The parameters for the working
periods are calculated at an interest rate of 3.75% p.a. (previous year: 5.25% p.a.) and an unchanged pension increase of
3.5% p.a.
The actuarial calculation of severance obligations and bonuses
shall occur using a valuation interest rate of 4.0% p.a. (previous year: 5.5% p.a.) and an average, sector-specific salary
increase from 3.0% to 4.0% p.a. (previous year: 4.0% p.a.). In
addition to the disability rates, mortality rates and the factors
resulting from the termination of employment on attaining retirement age, annual period of service-dependent turnover rates
based on internal statistics are applied for early terminations
of employment.
75
The actuarial profits and losses in the case of social provisions
are immediately recognised with effect on the income statement and shown under personnel expenses.
Further provisions are made for contingent liabilities towards
third parties at the amount of anticipated utilisation if it is likely
that the liability will ensue. If interest rates play a significant
role, then the rates of such provisions shall be reduced and
assessed at their cash value.
Defined contribution plans
Pursuant to IAS 19, the defined contribution plans are to be
distinguished from the defined benefit plans - for which provisions for pensions and severance payments must be made.
In the context of such plans, specified payments are made to
an independent institution (pension fund, employee provision
fund). Within this scheme, the company only guarantees the
contributions, not the amount of the later benefits. These payments are recognised as personnel expenses with effect on the
income statement.
Taxes on income
Raiffeisenlandesbank OÖ, as head of the group, has formed a
corporate group with diverse financially affiliated companies in
the sense of §9 of the Corporation Tax Act since 2005.
Trust fund transactions
Business operations based on the administration or placement
of assets for third party accounts are not shown on the balance
sheet. Commission payments from these operations are shown
under net commission income.
Net interest income
Interest and interest-related income includes, on the one hand,
interest income from loans and advances to customers and
banks, as well as bonds and interest-dependent derivatives.
On the other hand, it includes current earnings from shares,
Annual Report 2010
Interest expenses arise mainly from amounts owed to customers and banks, with securitised liabilities and with subordinated capital, as well as interest-dependent derivatives.
Interest income and expenses are subject to accrual accounting, dividends are recognised as soon as legal entitlement
arises.
Risk provisions
This item on the income statement shows the creation and the
release of risk positions (revaluations and reserves for the lending business). Direct write-offs and retroactive payments to
loans that have already been written off are also included in
this item.
Taxes on income are accounted for in accordance with IAS
12. Deferred taxes based on the country-specific tax rates are
calculated for temporary differences that result from the settlement of consolidated carrying amounts and tax values, which
balance out in the following period. Tax losses carried forward
are recorded as deferred taxes under assets if it seems probable that there will be taxable profits in the future in a similar
amount in the same company. Deferred tax assets are set off
against deferred tax liabilities for each subsidiary separately.
76
profit participation rights, shares in mutual funds as well as
from associated companies and other investments that are
neither fully consolidated nor accounted for at equity. Proportional profit or loss from companies accounted for at equity
is also reported in a separate item within net interest income.
Net fee and commission income is the result of the expenses
and income recorded as accrued in connection with the service business. This mainly includes payment transactions, foreign exchange, currency and precious metal transactions, the
securities business, and loan processing and the financial guarantee business.
Net income from investments shows the valuation results and
net proceeds from sales recorded with an effect on the income
statement which were realised in the case of securities of the
categories “held-to-maturity financial investments”, “financial
assets available for sale” (AfS) and „loans and receivables“.
In addition, this also includes the net income from the valuation and disposal of assets of affiliated companies and other
holdings that are neither fully consolidated nor accounted for
at equity. Profits and losses from the available-for-sale assets
that are recorded directly under equity or that were transferred from equity to the income statement can be found under
their own heading in the Notes. Furthermore, the results from
hedge accounting are recorded in these items of the income
statement.
Creditworthiness-related price declines in securities of the
categories „financial assets available for sale (AfS)“, „financial assets held to maturity“ and „loans and receivables“ are
recognised with effect on income. Triggering events include
substantial financial difficulties of the issuer, significant worsening of ratings and the default of interest payments or repayments. In the case of equity instruments, an impairment loss
with effect on income is also recognised in cost of purchase in
the event of permanent or significant price declines.
severance payments and long-term service bonuses, other
provisions and determining the useful life of long-term assets.
The amounts that actually result may be different from the
estimates.
Net income from designated
financial instruments
The Group
Unrealised and realised profits and losses in conjunction with
designated financial instruments that are recorded on the balance sheet under financial assets are not shown as net income
from investment but rather in a separate item on the income
statement called „profit or loss from designated financial instruments”. The latter item also includes the net income from
valuation and sale of all other designated financial instruments
and derivatives.
The general administrative expenses include personnel and
operating expenses as well as depreciation and impairment
of property and equipment, financial real estate and intangible
assets.
Exercising judgement and making estimates
When applying the accounting policies in the consolidated
financial statements, the management exercises judgement,
keeping in mind the goal of the financial statements to provide meaningful information about the company’s assets, financial position and profitability as well as about any changes
in the assets, financial position or profitability of the company.
Assumptions and estimates are performed with special consideration of market-related input factors, statistical data, experience and expert opinions.
The main areas affected by assumptions and estimates are the
determination of the fair value of some financial instruments,
balancing risk positions, creating provisions for pensions,
77
Segment Reporting
The segment reporting is based on the market segment calculation in the internal management accounts, in accordance
with IFRS 8. This is a graduated breakeven analysis that illustrates customer responsibility within the Raiffeisenlandesbank
Oberösterreich Group and is regularly presented to the Managing Board for decision-making and management support or
resource distribution. When dividing up the segments, consideration was given to a largely homogeneous structure of opportunities and risks.
Income and expenses are assigned to the segment in which
they arise. Net interest income is calculated using the market
interest rate method. The interest benefit from the equity is
assigned to the segments based on the regulatory capital requirements. The general administrative expenses include direct
and indirect costs. The direct costs (personnel and material
costs) are the responsibility of the market segments, the indirect costs are assigned based on certain keys. The results
per segment also include results from transactions with other
segments. The assessment of services exchanged between
the segments is always done at market price, the segments are
positioned to each other like external suppliers.
The segment reporting is divided into the following four
segments:
Corporates & Retail
This bundles together all of the business relations of Raiffeisenlandesbank Oberösterreich that are exposed to a counterparty
risk. Thus, this segment includes the business areas corporate
customers, agricultural customers, groups, major institutional
customers, international finance, correspondent banking, Southern German branch, the Czech Republic as well as the retail
business on Linzer and Trauner Squares.
Financial Markets
The financial markets segment includes the results of the trading areas (money, foreign exchange, stocks and bonds), the
treasury results from interest-rate management and hedging
with customers and from the management of the banking book,
as well as the income from services arising from the area of securities sales. In the trading areas, customer business takes
78
Annual Report 2010
priority over in-house trading and this is reflected in the high
portion of income from services.
Investments
The Investments segment includes in particular Raiffeisenlandesbank Oberösterreich’s bank and financial-institution-oriented holding portfolio. Aside from the most important fully
consolidated subsidiaries, this segment also includes subsidiaries and other holdings that are accounted for at equity or at
the cost of purchase.
The Investments segment also includes the portfolios:
Venture capital and partner capital for companies in growth
or succession situations as well as investments in companies of special location interest
outsourced companies whose points of emphasis are not
directly in the area of classical bank services and
real estate/PPP investments.
Furthermore, the corporate group of the GFA (Gesellschaft zur
Förderung agrarischer Interessen in Oberösterreich GmbH),
which consists of the “VIVATIS Holding AG” Group and the
“efko Frischfrucht und Delikatessen GmbH” Group, is assigned
to this investment segment. These corporations, active as they
are in the food and beverage industry, because of their nonbank activities, are found primarily in the group income sheet
under “other operating income” and in the “administrative expenses”. Due to the initial consolidation date of 31 December
2009, these effects are appearing in the consolidated profit
and loss accounting positions in the investments segment for
the first time in the financial year 2010.
Corporate Center
This includes revenue and yields where the content does not
fit into any other segment. One-time special effects that would
distort the various segment results and are not distributed to
individual market segments in the internal management reporting are also recorded here when applicable.
Result of companies that are accounted for at
equity
Risk provisions
Trading profit
Corporates
& Retail
Financial
Markets
Investments
Corporate
Center
Total
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
210,701
0
70,176
0
89,522
407,074
2,377
0
372,776
407,074
- 106,682
104,019
45,620
2,130
0
- 7,656
- 88,482
766
0
70,176
22,352
13,912
20,086
3,801
- 23,942
1,111
- 20,009
476,587
39,388
- 4,604
582
- 16,957
- 379,162
274,773
0
2,377
0
0
0
0
- 41,775
2,793
- 126,691
653,159
107,360
11,438
20,668
- 20,812
- 533,361
279,443
56,397
107,496
390,607
- 36,605
517,895
The Group
Reporting by segment 2010
Reporting by segment 2009
Result of companies that are accounted for at
equity
Risk provisions
Trading profit
Corporates
& Retail
Financial
Markets
Investments
Corporate
Center
Total
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
176,494
0
92,828
0
235,258
52,968
7,732
0
512,312
52,968
- 144,627
31,867
40,707
1,294
0
6,636
- 80,411
232
0
92,828
20,224
20,380
- 9,529
- 792
- 21,274
328
- 40,690
247,536
28,129
441
- 6,802
- 34,625
- 144,847
61,894
0
7,732
0
0
0
0
- 42,969
36
- 185,317
379,963
89,060
22,115
- 16,331
- 28,781
- 289,501
62,490
325
102,165
151,726
- 35,201
219,015
79
1. Net interest income
2010
2009
in EUR ‘000
in EUR ‘000
593,051
676,954
35,299
33,639
45,014
673,364
292,142
55,038
1,020,544
64,172
774,765
282,565
45,287
1,102,617
6,908
10,765
20,049
37,722
13,421
62,391
124,161
199,973
1,498
6,774
1,059,764
1,309,364
Interest expenses
Financial liabilities that are
stated at amortised cost
For designated and derivative financial instruments
Total interest expenses
- 349,544
- 332,806
- 682,350
- 449,856
- 343,528
- 793,384
- 4,638
- 3,668
- 686,988
- 797,052
Net income from companies accounted for using the equity method
407,074
52,968
Net interest income
779,850
565,280
Interest income
From financial instruments in the category
"loans and receivables"
"available for sale"
"held-to-maturity"
Subtotal
From designated and derivative financial instruments
From lease financing
Total interest income
Current income
From shares and other variable-yield securities
From investments in affiliated companies
From other investments
Current income
Other interest-related income
Other interest-related expenses
The result of the companies accounted for at equity is the first-time consolidation effect of the RZB Group amounting to EUR 274
million. In the 2010 financial year, the regular income includes one-time dividend distributions from investment companies and
profits from reinvested results from previous years totalling EUR 0 million. (previous year: EUR 102 million).
80
Annual Report 2010
2010
2009
in EUR ‘000
in EUR ‘000
Allocation to risk provisions
Release of risk provisions
Direct write-offs
Amounts received against loans and advances written off
- 217,098
110,957
- 22,000
1,450
- 242,760
59,691
- 3,257
1,009
Total
- 126,691
- 185,317
The Group
2. Risk provisions
3. Net fee and commission income
From payment transactions
From financing costs
From securities business
From foreign exchange, currency and precious metals transactions
From other service business
Total
2010
2009
in EUR ‘000
in EUR ‘000
20,959
23,571
47,708
2,868
12,254
20,366
19,470
40,886
3,016
5,322
107,360
89,060
4. Trading profit
2010
2009
in EUR ‘000
in EUR ‘000
Interest-rate related business
Currency related business
Other business
10,453
- 724
1,709
15,491
5,026
1,598
Total
11,438
22,115
5. Net income from designated financial instruments
Net profit/loss from designated financial instruments and derivatives
2010
2009
in EUR ‘000
in EUR ‘000
20,668
- 16,331
81
6. Net income from investments
Securities in the category “held-to-maturity”
Net result from valuation
Net result from disposal
Securities in the category “loans and receivables”
Securities in the category “available for sale”
Shares in companies in the category “available for sale”
Net result from hedge accounting
Net result from first-time consolidation
Total
2010
2009
in EUR ‘000
in EUR ‘000
0
140
- 3,714
44
- 4,653
14
0
0
- 874
2,818
- 3,293
15,792
- 10,032
- 14
- 392
- 7,819
- 41,575
260
0
3,705
- 20,812
- 28,781
The net result from securities in the category “available for sale” include impairments of EUR -3,000 thousand (previous year: EUR
-3,293 thousand) and reversals of impairment losses amounting to EUR 2,126 thousand (previous year: EUR 0 thousand). The remaining net results from valuation reflect the impairment losses recognised in profit or loss. The first-time consolidation effect of
EUR -7,819 thousand arises from the inclusion of Raiffeisen-IMPULS-Finance & Lease GmbH in the scope of consolidation.
7. General administrative expenses
Personnel Expenses
Wages and salaries
Compulsory social security contributions
Voluntary social security contributions
Expenses for severance payments and pensions
Operating expenses
Rent and leasing expenses
Room expenses (operation, maintenance)
IT and communications
Legal and consulting expenses
Advertising and representation expenses
Other material expenses
Depreciation and amortisation of property, plant and equipment, investment property
and intangible assets
Investment property
Goodwill
Other intangible assets
Total
82
Annual Report 2010
2010
2009
in EUR ‘000
in EUR ‘000
- 197,575
- 49,159
- 3,588
- 28,246
- 117,892
- 27,536
- 2,490
- 10,805
- 21,110
- 42,422
- 21,373
- 15,461
- 32,575
- 66,421
- 14,178
- 29,484
- 12,930
- 9,854
- 15,409
- 28,752
- 36,640
- 2,381
- 6,428
- 9,982
- 16,017
- 1,815
0
- 2,339
- 533,361
- 289,501
2010
2009
in EUR ‘000
in EUR ‘000
Pension fund
Employee pension fund
- 2,213
- 434
- 2,381
- 431
Total
- 2,647
- 2,812
In the 2010 business year the “administrative expenses” included about EUR 199 million from the GFA companies (Gesellschaft
zur Förderung agrarischer Interessen in Oberösterreich GmbH) - consisting of the “VIVATIS Holding AG” Group and the “efko
Frischfrucht und Delikatessen GmbH” Group that, because of the date of the first consolidation as at 31 Dec. 2009, had no corresponding expense under last year’s item. The companies are in the food and beverage sector and, as their business is unrelated
to banking, they are mainly reported in the Income Statement under “Other operating income” and “Administrative expenses”.
8. Other operating income
Income from non-bank activities
Remaining operating income
Other operating expenses
Expenses from non-bank activities
Other tax and fees
Remaining operating expenses
Total
2010
2009
in EUR ‘000
in EUR ‘000
1,009,680
53,358
131,480
84,560
- 23,514
- 3,169
- 756,912
- 25,685
- 1,447
- 126,418
279,443
62,490
In financial year 2010, “Other net operating income” includes around EUR 210 million from the GFA Group (Gesellschaft zur
Förderung agrarischer Interessen in Oberösterreich GmbH) – comprising “VIVATIS Holding AG” Group and “efko Frischfrucht
und Delikatessen GmbH” Group, against which, as a result of the date of the first-time consolidation, there is no corresponding
expense item as at 31 December 2009. The companies are in the food and beverage sector and, as their business is unrelated
to banking, they are mainly reported in the Income Statement under “Other operating income” and “Administrative expenses”.
9. Taxes on income and earnings
Current taxes on income and earnings
of which in Austria
of which foreign
Deferred taxes
Total
2010
2009
in EUR ‘000
in EUR ‘000
- 11,281
- 4,090
- 7,191
74,463
- 4,460
- 4,361
- 99
- 16,179
63,182
- 20,639
83
The Group
Breakdown of expenses for defined contribution plans for severance and pension payments:
The following calculation of translation reserves shows the relationship between the profit for the year and the actual tax burden:
Income tax expense expected for the financial year at the statutory tax rate (25%)
Tax reductions due to tax-exempt earnings of investments
2010
2009
in EUR ‘000
in EUR ‘000
517,895
- 129,474
21,385
219,015
- 54,754
24,522
Tax reductions due to at-equity profit from companies accounted for at equity
Tax reductions due to tax-exempt other earnings
Tax increase due to non-deductible expenses
Tax credit/burden from previous years
Effect of deviating foreign tax rates
Change in the usability of losses carried forward
Release of deferred taxes arising from application of IAS 12.39
Other
89,504
3,327
- 7871
- 2,643
427
9,130
7,038
973
- 7,588
- 894
509
7,009
81,791
- 2,394
0
2,546
Actual tax burden
63,182
- 20,639
Upon reporting for the first time the shares in the RZB Group using the equity method, deferred taxes amounting to around EUR
82 million were released in accordance with IAS 12.39. For tax losses carried forward in the amount of EUR 132,982 thousand
(previous year: EUR 108,224 thousand), no deferred tax assets were recognised, as a tax benefit does not currently appear to be
feasible within a reasonable period of time.
Tax assets
Regular tax assets
Deferred tax assets
of which deferred tax assets from tax losses carried forward that have not yet been utilised
Total
2010
2009
in EUR ‘000
in EUR ‘000
62,416
73,763
58,017
89,784
89,387
86,997
136,179
147,801
Changes in tax liabilities
84
2010
2009
in EUR ‘000
in EUR ‘000
Current tax liabilities
18,603
20,905
18,400
103,765
Total
39,508
122,165
Annual Report 2010
Financial assets in the category “available for sale”
Financial assets in the category “held-to-maturity”
Designated financial instruments and derivatives
Shares in companies
Social provisions
Risk provisions
Other provisions
Tax losses carried forward, not yet utilised
Other temporary differences
Total
Deferred tax assets
2010
2010
with effect on the
income 2010
in EUR ‘000
in EUR ‘000
in EUR ‘000
- 4,069
- 33,572
- 1,589
- 23,065
22
- 1,487
9,091
27,595
295
89,387
11,155
- 5,054
0
0
20,316
1,042
1,335
- 3,319
- 3,878
- 1,793
4,116
8,140
427
335
658
- 15,416
552
1,245
4,339
832
850
- 182
80,823
73,763
20,905
74,463
Deferred tax assets
2009
Financial assets in the category “available for sale”
Financial assets in the category “held-to-maturity”
Designated financial instruments and derivatives
Shares in companies
Social provisions
Risk provisions
Other provisions
Tax losses carried forward, not yet utilised
Other temporary differences
Total
The Group
Temporary differences between the valuation rates in the IFRS consolidated financial statements and the tax valuation rates have
the following effect on the deferred taxes recorded on the balance sheet:
Deferred tax liabilities Recognised as income
2009
2009
in EUR ‘000
in EUR ‘000
in EUR ‘000
- 4,037
- 31,407
- 1,290
- 11,412
866
- 3,260
5,952
27,086
3,687
86,997
16,602
- 6,826
0
0
17,050
83,385
- 127
- 2,643
- 2,903
2,778
1,987
11,064
- 5,335
325
1,493
10,174
- 17,910
- 1,197
366
4,466
- 1,572
- 9,459
2,470
89,784
103,765
- 16,179
85
10. Financial instruments disclosure
Categories of financial assets and financial liabilities as at 31 December 2010:
ASSETS
Trading assets
held for trading
Designated financial
instruments
in EUR '000
in EUR '000
0
0
0
1,560,917
0
241,814
1,136,398
0
0
1,495,354
1,560,917
2,873,566
Financial assets
Carrying amount total as at 31 Dec. 2010
The fair value carrying amounts in the category “Assets available for sale (Afs)” contain equity instruments in the amount of EUR
767,327k that are valued at the cost of purchase because their fair value cannot be reliably determined.
held for trading
instruments
in EUR '000
in EUR '000
Trading liabilities
0
0
0
1,227,072
0
1,712,857
1,617,336
4,791,099
0
933,962
1,227,072
9,055,254
LIABILITIES
There are no material changes in the fair value of designated financial liabilities as a result of changes in ratings for Raiffeisenlandesbank Oberösterreich. The credit exposure for these designated liabilities as at 31 December 2010 was EUR 9,055,254
thousand.
86
Annual Report 2010
Assets available for sale
(AfS)
Financial assets
maturity
Carrying amount total
31 Dec. 2010
Fair value total
31 Dec. 2010
in EUR '000
in EUR ‘000
in EUR ’000
in EUR ‘000
in EUR ‘000
0
0
0
0
0
0
0
0
134,640
6,626,939
17,055,538
0
134,640
6,868,753
18,191,936
1,560,917
134,640
6,826,115
18,386,716
1,560,917
2,622,159
1,760,651
432,654
6,310,818
6,302,734
2,622,159
1,760,651
24,249,771
33,067,064
33,211,122
The Group
The amount of the change in fair value of designated loans and advances that was due to changes in ratings in 2010 was EUR
-2,770 thousand (aggregate EUR -3,314 thousand). This figure was obtained by applying the changes in credit spread due to rating
changes. The credit exposure for these designated loans and receivables as at 31 December 2010 was EUR 1,378,212 thousand.
Financial liabilities
stated at amortised cost
31 Dec. 2010
Fair value total
31 Dec. 2010
in EUR '000
in EUR ‘000
in EUR ‘000
9,594,657
7,676,176
3,167,224
0
1,069,409
11,307,514
9,293,512
7,958,323
1,227,072
2,003,371
11,351,417
9,305,123
8,000,403
1,227,072
1,946,321
21,507,466
31,789,792
31,830,336
The carrying amount of designated financial liabilities as at 31 December 2010 was EUR 229,148 thousand higher than the repayment sum contractually agreed on.
87
Categories of financial assets and financial liabilities as at 31 December 2009:
ASSETS
Trading assets
held for trading
instruments
in EUR '000
in EUR '000
0
0
0
1,237,794
0
532,801
1,283,482
0
0
1,642,880
1,237,794
3,459,163
Financial assets
The fair value carrying amounts in the category “assets available for sale (Afs)” contain equity instruments in the amount of EUR
1,485,237 thousand that are valued at the cost of purchase because their fair value cannot be reliably determined.
held for trading
instruments
in EUR '000
in EUR '000
Trading liabilities
0
0
0
1,011,056
0
2,116,084
1,507,595
5,628,550
0
641,529
1,011,056
9,893,758
LIABILITIES
Because there was no significant change to the rating at Raiffeisenlandesbank Oberösterreich, fair value changes of designated
financial liabilities were due to changes in market circumstances. The credit exposure for these designated liabilities as at 31
December 2009 was EUR 9,893,758 thousand.
88
Annual Report 2010
Assets available for sale
(AfS)
Financial assets
held to maturity
as at 31 Dec. 2009
Total fair value
31 Dec. 2009
in EUR '000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
0
0
0
0
0
0
0
0
202,962
6,909,695
16,139,415
0
202,962
7,442,496
17,422,897
1,237,794
202,962
7,385,013
17,509,871
1,237,794
2,719,180
2,160,983
933,682
7,456,725
7,478,376
2,719,180
2,160,983
24,185,754
33,762,874
33,814,016
The Group
The amount of the change in fair value of designated loans and advances that was due to changes in ratings in 2009 was EUR
-2,041 thousand (aggregate EUR -1,827 thousand). This figure was obtained by applying the changes in credit spread due to rating
changes. The credit exposure for these designated loans and receivables as at 31 December 2009 was EUR 1,816,283 thousand.
Financial liabilities
stated
at amortised cost
as at 31 Dec. 2009
Fair value total
as at 31 Dec. 2009
in EUR '000
in EUR ‘000
in EUR ‘000
10,251,570
7,373,031
2,583,677
0
1,030,616
12,367,654
8,880,626
8,212,227
1,011,056
1,672,145
12,399,236
8,878,832
8,244,731
1,011,056
1,584,465
21,238,894
32,143,708
32,118,320
The carrying amount of designated financial liabilities as at 31 December 2009 was EUR 197,196 thousand higher than the repayment sum contractually agreed on.
89
Breakdown of the fair value of financial instruments in 2010:
Assets available for sale (AfS)
Total financial assets measured at fair value
Total financial liabilities measured at fair value
Thereof measu- Thereof measurerement methods ment methods not
based on
based on market
market data
data
Financial instruments measured
at fair value 31
Dec. 2010
Thereof market
prices listed in
active markets
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
1,560,917
2,873,566
41,659
729,838
1,519,258
2,143,293
0
435
1,854,832
6,289,315
1,227,072
9,055,254
983,052
1,754,549
0
0
871,365
4,533,916
1,227,072
9,055,254
415
850
0
0
10,282,326
0
10,282,326
0
Breakdown of the fair value of financial instruments in 2009:
Assets available for sale (AfS)
Total financial assets measured at fair value
Total financial liabilities measured at fair value
Thereof market
prices listed in
active markets
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
1,237,794
3,459,163
5,464
631,028
1,232,330
2,827,942
0
193
1,233,943
5,930,900
1,011,056
9,893,758
746,353
1,382,845
0
0
487,535
4,547,807
1,011,056
9,893,758
55
248
0
0
10,904,814
0
10,904,814
0
Redesignations of financial assets
In financial year 2008, securities from the category „financial
assets available for sale (AfS)“ in the amount of EUR 125,421
thousand were redesignated to the category „loans and advances“. The carrying amount of the redesignated securities
as at 31 December 2010 was EUR 89,352 thousand (previous
year: EUR 121,393 thousand; their fair value as at 31 December
2010 was EUR 91,788 thousand (previous year: EUR 124,022
thousand).
90
Annual Report 2010
Thereof measu- Thereof measurerement methods ment methods not
based on
based on market
market data
data
Financial instruments measured
at fair value 31
Dec. 2009
In financial year 2010, interest income on the redesignated securities in the amount of EUR 4,558 thousand (previous year:
EUR 6,446 thousand) and impairments of EUR 4,653 thousand
(previous year: EUR 0 thousand) were reported in the income
statement. If no redesignation had been carried out, fair value
changes in the amount of EUR 1,751 thousand (previous year:
EUR 3,620 thousand) would have been recognised in the AfS
reserve with no effect on the income statement in financial year
2010.
The following derivative financial instruments existed on the 2010 balance sheet date:
Market value
up to 1 year
1 to 5
years
over 5 years
Total
Positive
Negative
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
310,356
3,298,552
315,198
465,710
2,591,138
13,130,271
745,366
1,478,284
66,003
16,892,903
1,145,777
1,713,168
2,967,497
33,321,726
2,206,341
3,657,162
9,695
1,276,265
37,626
2,191
7,655
1,031,630
1,410
42,292
Interest-rate futures
Total
Foreign-currency
Dependent futures
OTC products
49,803
4,439,619
0
17,945,059
0
19,817,851
49,803
42,202,529
0
1,325,777
0
1,082,987
Spot exchange and forward transactions
Currency and interest-rate swaps
with several currencies
Currency options - purchases
Foreign exchange options - sales
Total
Other futures
398,470
3,882,120
42,939
175,963
1,174
83,915
442,583
4,141,998
6,522
106,829
10,926
91,983
282,490
283,098
4,846,178
46,539
46,547
311,988
2,991
2,991
91,071
332,020
332,636
5,249,237
20,189
0
133,540
0
19,757
122,666
OTC products
Shares options - purchases
Share options - sales
Credit derivatives
Commodity options - purchases
Commodity options - sales
Total
Total OTC products
Total products traded on the stock
exchange
63,700
63,700
1,100
0
0
128,500
9,364,494
49,803
74,611
86,548
90,770
0
0
251,929
18,508,976
0
10,000
15,297
11,100
5,000
5,000
46,397
19,955,319
0
148,311
165,545
102,970
5,000
5,000
426,826
47,828,789
49,803
22,786
1,629
383
253
0
25,051
1,484,368
0
1,651
23,445
1,514
0
253
26,863
1,232,516
0
Total
9,414,297
18,508,976
19,955,319
47,878,592
1,484,368
1,232,516
Term to maturity
Interest rate-dependent futures
OTC products
Forward Rate Agreements
Interest rate swaps
Interest rate options - purchases
Interest rate options - sales
Products traded on the stock exchange
The Group
Nominal amount
91
Nominal amount
up to 1 year
1 to 5
years
over 5 years
Total
Positive
Negative
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
5,000
3,399,580
32,554
65,901
4,879,261
13,033,172
630,594
1,860,062
81,462
14,062,425
940,521
1,352,927
4,965,723
30,495,177
1,603,669
3,278,890
17,180
1,037,916
23,636
3,107
15,148
854,002
1,897
34,837
Total
Foreign-currency
Dependent futures
OTC products
23,909
3,526,944
0
20,403,089
0
16,437,335
23,909
40,367,368
0
1,081,839
0
905,884
Spot exchange and forward transactions
with several currencies
Total
Other futures
546,894
2,943,013
8,544
233,266
2,224
72,857
557,662
3,249,136
5,887
48,699
6,330
51,199
210,902
211,372
3,912,181
54,294
53,011
349,115
3,000
3,000
81,081
268,196
267,383
4,342,377
28,157
0
82,743
0
29,500
87,029
OTC products
Shares options - purchases
Credit derivatives
Total
Total OTC products
Total products traded on the stock
exchange
26,400
24,186
2,156
0
0
52,742
7,467,958
23,909
132,234
132,172
96,024
0
0
360,430
21,112,634
0
38,381
65,000
10,000
5,000
5,000
123,381
16,641,797
0
197,015
221,358
108,180
5,000
5,000
536,553
45,222,389
23,909
26,148
8,436
878
0
125
35,587
1,200,169
0
1,379
19,293
23,293
127
0
44,092
1,037,005
0
Total
7,491,867
21,112,634
16,641,797
45,246,298
1,200,169
1,037,005
Term to maturity
OTC products
Interest rate swaps
92
Market value
Annual Report 2010
11. Cash and cash equivalents
Cash in hand
Balances at central banks
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
35,430
99,210
143,726
59,236
134,640
202,962
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Loans and advances payable on demand
Money market transactions
Loans to banks
Purchased loans and advances
1,969,466
3,165,726
1,718,211
15,350
3,305,112
2,630,872
1,499,790
6,722
Total
6,868,753
7,442,496
5,918,178
950,575
5,978,878
1,463,618
6,868,753
7,442,496
Total
In Austria
Abroad
Total
The Group
12. Loans and advances to banks
13. Loans and advances to customers
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Money-market transactions
Loan transactions
Mortgage loans
Covering loans
Purchased loans and advances
Lease financing
Other
2,023,002
14,409,149
389,372
161,756
291,209
907,155
10,293
2,294,829
13,319,908
422,279
170,011
314,753
888,486
12,631
Total
18,191,936
17,422,897
In Austria
Abroad
12,109,632
6,082,304
11,604,490
5,818,407
Total
18,191,936
17,422,897
93
14. Risk provisions
Risk provisions 2010
Change in
scope of
As at
consolida- Currency
1 Jan. 2010
tion
differences Allocations Reversals
in EUR ‘000
of which in Austria
of which foreign
Loans and advances to
customers
of which in Austria
of which foreign
Revaluations in the portfolio
Subtotal
Risks for off-balance-sheet
transactions
Total
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
Utilised
Reclassifications
As at
31 Dec.
2010
in EUR ‘000
in EUR ‘000
in EUR ‘000
22,724
1,278
21,446
621,349
0
0
0
1,046
0
0
0
- 304
131
0
131
198,032
4,722
0
4,722
90,588
0
0
0
51,483
0
0
0
0
18,133
1,278
16,855
678,052
398,314
223,035
93,649
737,722
0
1,046
52
1,098
0
- 304
-4
- 308
142,685
55,347
3,416
201,579
55,325
35,263
801
96,111
25,451
26,032
0
51,483
0
0
0
0
460,223
217,829
96,312
792,497
21,035
758,757
0
1,098
0
- 308
15,519
217,098
14,846
110,957
1,351
52,834
0
0
20,357
812,854
Risk provisions 2009
Change in
scope of
As at
consolida- Currency
1 Jan. 2009
tion
differences Allocations Reversals
in EUR ‘000
of which in Austria
of which foreign
customers
of which in Austria
of which foreign
Revaluations in the portfolio
Subtotal
Risks for off-balance-sheet
transactions
Total
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
Utilised
Reclassifications
As at
31 Dec.
2009
in EUR ‘000
in EUR ‘000
in EUR ‘000
22,650
1,111
21,539
476,171
0
0
0
19,118
0
0
0
476
1,779
900
879
220,709
876
733
143
54,851
829
0
829
40,274
0
0
0
0
22,724
1,278
21,446
621,349
339,439
136,732
76,128
574,949
0
19,118
6,194
25,312
0
476
24
500
124,413
96,296
11,924
234,412
46,526
8,325
621
56,348
26,086
14,188
0
41,103
7,074
- 7,074
0
0
398,314
223,035
93,649
737,722
16,214
591,163
0
25,312
0
500
8,348
242,760
3,343
59,691
184
41,287
0
0
21,035
758,757
The interest income on impaired financial assets that were granted interest-free amounted to EUR 1,839 thousand in 2010
(previous year: EUR 3,018 thousand).
94
Annual Report 2010
Debt securities and other fixed-interest securities
Municipal bonds that can be refinanced
Other public sector debt issues
Bonds and debt securities from other issuers
Shares and other variable-yield securities
Other variable yield securities
Positive market value from derivative transactions
Interest rate transactions
Currency exchange transactions
Stock and index related business
Other business
Total
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
17,765
55
56,404
2,562
3,461
30,906
416
488
1,329,739
133,422
22,786
330
1,083,298
90,263
26,240
576
1,560,917
1,237,794
The Group
15. Trading assets
The fair value of derivative financial instruments that were employed under fair value hedge accounting as hedging transactions
amounted to EUR 334 thousand as at 31 December 2010 (previous year: EUR 0 thousand).
16. Financial assets
Designated financial assets
Shares
Shares in investment funds
Total
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
249,260
640,255
243,229
810,656
7,060
254,321
344,458
5,326
244,486
339,183
1,495,354
1,642,880
95
Financial assets in the category “available for sale” (Afs)
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
441,533
922,155
119,036
692,045
Shares
Shares in investment funds
Shares in companies
96,033
259,138
383,385
66,802
332,488
404,231
305,894
214,021
312,429
792,149
2,622,159
2,719,180
Investments in affiliated companies
Other holdings
Total
Financial instruments in the category “held-to-maturity” (HtM)
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Other public sector debt issues
255,361
934
1,504,356
257,017
1,201
1,902,765
Total
1,760,651
2,160,983
Financial assets in the category “loans and receivables”
96
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
432,654
933,682
Total
432,654
933,682
Annual Report 2010
17. Companies accounted for at equity
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Banks
Non-banks
1,254,719
395,153
288,862
365,431
Total
1,649,872
654,293
The Group
Banks reported using the equity method as at 31 December 2010 include for the first time Raiffeisenlandesbank Oberösterreich’s
14.94% stake in the RZB Group. RZB has for its part around 78.5% of the shares in the stock exchange-listed Raiffeisen Bank
International AG (RBI). The CEO of Raiffeisenlandesbank Oberösterreich – Ludwig Scharinger – is a member of the supervisory
boards of both RZB and RBI. Prior to acquiring a material influence in the wake of the merger of significant parts of the banking
business of Raiffeisen Zentralbank Österreich Aktiengesellschaft (RZB) and Raiffeisen International Bank-Holding AG (RI) in 2010,
the shares in RZB Group were reported under the item headed “Financial assets” as “Other investments”. Among other banks
that are accounted for using the equity method is the 39% stake in the Oberösterreichische Landesbank AG Group (Hypo Oberösterreich), which is held by the fully consolidated Hypo Holding GmbH. Raiffeisenlandesbank Oberösterreich sees itself as a
long-term strategic partner to the regional bank that is headquartered in Linz and in which the province of Upper Austria has a
majority holding.
As regards non-bank holdings, the participation in Raiffeisenlandesbank Oberösterreich Invest GmbH & Co OG is worth particular mention. The latter also owns 13.73% of the shares in the voestalpine AG group (price per share as at 31 December 2010,
EUR 35.65) and has, as the largest individual shareholder, the opportunity to exercise a material influence on the financial and
business policies of the most important steel company in Austria. In his function as deputy chairman of the Supervisory Board,
the CEO of Raiffeisenlandesbank Oberösterreich – Ludwig Scharinger – is an active participant in the strategic decisions made
at voestalpine AG.
A list of the companies that are accounted for at equity can be found under the heading “Scope of consolidation”. The following
table is a summary of the financial data on the companies mentioned in this list. The figures are a sum of the information contained in the various financial statements.
Assets
Liabilities
Earnings
Result
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
153,712,100
140,764,961
6,087,424
1,334,671
17,077,898
15,555,268
787,542
158,571
Two of the companies have a balance sheet date that is different from that of Raiffeisenlandesbank Oberösterreich. Both in the
application of the equity method and for the list above, Raiffeisenlandesbank Oberösterreich Invest GmbH & Co OG was taken
into consideration with values in accordance with its reporting date of 30 September. The data for Österreichische Salinen AG
(reporting date 30 June) is based on an interim report as at 31 December.
97
18. Intangible assets
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Customer base
Brand
Goodwill
7,814
28,632
10,196
9,227
13,005
30,800
16,624
9,409
Total
55,869
69,838
IAS 36.90 requires that cash-generating units to which a figure for good will has been allocated must be subjected to an impairment test every year and whenever there is cause to suspect any impairment. Under the terms of this regulation, Raiffeisenlandesbank Oberösterreich carries out an annual impairment test in the fourth quarter for the goodwill capitalised on the first-time
consolidation of the “IMPULS-LEASING International Aktiengesellschaft” Group. In addition, should periodical projections give
any indications that negative deviations compared to the underlying budgets might be expected, an additional impairment test
will be carried out immediately after such indications appear.
Raiffeisenlandesbank Oberösterreich subdivides its business areas according to a portfolio allocation within the Group. Corresponding cash-generating units are established within the individual portfolios with due regard to business area, materiality and
other relevant criteria. These cash-generating units in turn constitute the basis for the impairment test of goodwill. To carry out the
impairment test, the value of the company (value in use) determined at amortised cost is compared with the equity plus goodwill
allocated to the cash-generating unit.
Under the impairment test, with due regard to the item being valued, the most suitable method to establish the value in use is
employed. Accordingly, the value in use for investments, operations or partial operations in the business of providing banking
or bank-related services and of outsourced banking services is determined by reference to the income capitalisation method
(equity approach). That is why the income capitalisation method is also applied to the impairment test on the goodwill of the cashgenerating unit “IMPULS-LEASING International Aktiengesellschaft” Group.
In determining the value in use of the cash-generating unit “IMPULS-LEASING International Aktiengesellschaft” Group, a distinction is made between the detailed forecast for the reporting period and a period thereafter when the figure is carried forward. The
reporting period for the detailed forecast covers a period of 5 years and is based on the current medium-term budgeting, which
is then discounted back in the wake of the impairment test to the reporting date as at 31 December 2010.
In contrast, the continuing value is based on the figures for the fifth planning year of the medium-range planning and is determined using the present value of the perpetual annuity without taking possible growth rates into account. The sum of the present
values arising from the detailed forecast and the continuing value give the value in use, which is then compared with the equity
plus the goodwill of the goodwill-bearing, cash-generating unit to test for any impairment.
The medium-term planning used as the basis for this calculation is based on data from the past taking future market developments
into account. Internal expectations from within the Group are supplemented by external market expectations.
To measure the cash-generating unit “IMPULS-LEASING International Aktiengesellschaft” Group, the following equity cost rates
are applied in accordance with the Capital Asset Pricing Model (CAPM) – with diverging figures depending on the region:

98
Poland:11.55%
Hungary:13.16%
Slovakia:9.69%
Romania:14.12%
Croatia:13.48%
Annual Report 2010
The goodwill arising from the first-time consolidation in 2009 of “IMPULS-LEASING International Aktiengesellschaft” Group has
been written down as a result of changed business policies in connection with the overall market conditions in Hungary to EUR
6.4 million.
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Land and buildings used for bank operations
Other property, plant and equipment
Investment property
141,177
105,635
74,866
143,667
95,456
48,453
Total
321,678
287,576
The Group
19. Property, plant and equipment and investment property
The fair value of investment property amounts to EUR 77,183 thousand (previous year: EUR 52,192 thousand). Contractual obligations exist for real estate held as financial investments in the amount of EUR 0 thousand (previous year: EUR 2,381 thousand).
20. Other assets
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Receivables from non-bank activities
Prepayments and accrued income
Other assets
108,859
20,313
170,212
146,071
21,409
281,300
Total
299,384
448,780
99
21. Schedule of changes in non-current assets
Schedule of changes in non-current assets 2010
Purchase and production costs
As at
1 Jan. 2010
Change in scope
of consolidation
Currency
differences
in EUR ‘000
in EUR '000
in EUR '000
Intangible assets
Goodwill
Land and buildings used for operations
Investment property
92,360
17,837
74,523
525,070
258,127
266,943
58,555
1,183
0
1,183
10,552
176
10,376
14,638
1
0
1
- 505
- 10
- 495
0
Total
675,985
26,373
- 504
The assets of the subsidiaries that were first consolidated during financial year 2010 were recorded as gross assets in the schedule of changes in non-current assets.
Schedule of changes in non-current assets 2009
Intangible assets
Goodwill
Land and buildings used for operations
Investment property
Total
100
Annual Report 2010
As at
1 Jan. 2009
Change in scope
of consolidation
Currency
differences
in EUR ’000
in EUR '000
in EUR '000
14,971
0
14,971
188,149
89,048
99,101
76,519
17,837
58,682
345,637
166,521
179,116
27
0
27
- 43
0
- 43
49,440
1,464
0
252,560
423,620
- 16
Additions
Disposals
Reclassifications
in EUR '000
in EUR ‘000
in EUR ‘000
in EUR ‘000
Carrying amount
Aggregate
depreciation
Depreciation
As at
31 Dec. 2010
in EUR '000
in EUR ‘000
in EUR ‘000
2,153
0
2,153
47,628
4,334
43,294
20,654
601
0
601
27,635
802
26,833
1,040
0
0
0
0
1,398
- 1,398
0
95,096
17,837
77,259
555,110
263,223
291,887
92,807
39,227
7,641
31,586
308,298
122,045
186,253
17,941
16,410
6,428
9,982
36,640
7,757
28,883
2,381
55,869
10,196
45,673
246,812
141,178
105,634
74,866
70,435
29,276
0
743,013
365,466
55,431
377,547
Appreciation and depreciation
The Group
Appreciation and depreciation
As at
31 Dec. 2010
Carrying amount
Additions
Disposals
Reclassifications
As at
31 Dec. 2009
Aggregate
depreciation
Depreciation
As at
31 Dec. 2009
in EUR '000
in EUR ‘000
in EUR ‘000
in EUR ’000
in EUR '000
in EUR ‘000
in EUR ’000
2,186
0
2,186
27,445
2,558
24,887
1,348
0
1,348
36,113
0
36,113
5
0
5
-5
0
-5
92,360
17,837
74,523
525,070
258,127
266,943
22,522
1,213
21,309
285,947
114,460
171,487
2,339
0
2,339
16,017
1,906
14,111
69,838
16,624
53,214
239,123
143,667
95,456
7,792
141
0
58,555
10,102
1,815
48,453
37,423
37,602
0
675,985
318,571
20,171
357,414
101
22. Amounts owed to banks
Liabilities payable on demand
Money market transactions
Long-term financing
Total
In Austria
Abroad
Total
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
3,484,950
4,541,188
3,281,376
4,485,981
4,825,752
3,055,921
11,307,514
12,367,654
8,270,460
3,037,054
9,075,263
3,292,391
11,307,514
12,367,654
23. Amounts owed to customers
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Demand deposits
Term deposits
Savings deposits
Other
2,925,544
4,550,102
1,773,722
44,144
3,356,743
3,705,195
1,777,064
41,624
Total
9,293,512
8,880,626
In Austria
Abroad
6,634,042
2,659,470
6,618,702
2,261,924
Total
9,293,512
8,880,626
24. Liabilities evidenced by certificates
102
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Bonds issued
Mortgage bonds/ public sector certificates
Other securitised liabilities
3,787,252
61,942
4,109,129
4,181,202
177,218
3,853,807
Total
7,958,323
8,212,227
Annual Report 2010
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Provisions for personal expenses
of which severance provisions
of which pension provisions
of which bonus fund provisions
Other provisions
126,745
58,180
58,451
10,114
27,865
109,226
48,259
52,229
8,738
34,490
Total
154,610
143,716
The Group
25. Provisions
Changes in severance provisions
2010
2009
2008
2007
2006
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
Present value (DBO) 1 Jan.
Change in scope of consolidation
Service cost
Interest cost
Payments
Actuarial profit/loss
48,259
107
2,260
2,069
- 2,447
7,932
33,861
10,222
1,797
2,082
- 1,433
1,730
33,838
0
2,028
1,748
- 1,860
- 1,893
31,015
0
1,919
1,460
- 782
226
27,905
0
1,950
1,343
- 1,426
1,243
Present value (DBO) 31 Dec. (= provisions)
58,180
48,259
33,861
33,838
31,015
Change in pension provisions
2010
2009
2008
2007
2006
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
Service cost
Interest cost
Payments
52,229
0
223
1,410
- 1,794
6,383
51,472
4,518
349
2,896
- 3,367
- 3,639
56,718
0
438
2,710
- 3,303
- 5,091
62,694
0
483
2,575
- 3,378
- 5,656
63,994
0
519
2,570
- 3,311
- 1,078
58,451
52,229
51,472
56,718
62,694
103
Changes in staff anniversary provisions
Service cost
Interest cost
Payments
2010
2009
2008
2007
2006
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
8,738
181
692
390
- 542
655
5,062
2,931
302
310
- 362
495
5,379
0
366
280
- 349
- 614
5,253
0
357
245
- 395
- 81
4,863
0
354
232
- 275
79
10,114
8,738
5,062
5,379
5,253
Changes in other provisions
Risk provisions
As at 1 Jan.
Allocations
Reversals
Utilised
As at 31 Dec.
Other provisions
2010
2009
2010
2009
in EUR '000
in EUR '000
in EUR '000
in EUR '000
21,035
15,519
- 14,846
- 1,351
0
16,214
8,348
- 3,343
- 184
0
13,455
3,279
- 5,999
- 3,227
0
8,351
227
- 1,301
- 747
6,925
20,357
21,035
7,508
13,455
26. Trading liabilities
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Interest rate transactions
Currency exchange transactions
Stock and index related business
Other transactions
1,086,207
123,200
1,650
16,015
906,398
88,135
1,880
14,643
Total
1,227,072
1,011,056
The fair value of derivative financial instruments that were employed under fair value hedge accounting as hedging transactions
amounted to EUR -17,217 thousand as at 31 December 2010 (previous year: EUR 0 thousand).
104
Annual Report 2010
27. Other liabilities
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Liabilities from non-bank activities
Other liabilities
99,613
14,602
399,650
91,384
14,238
380,440
Total
513,865
486,062
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Subordinated liabilities
Supplementary capital
Profit-sharing rights
Silent investments
314,939
1,670,920
17,312
200
114,512
1,540,070
17,313
250
Total
2,003,371
1,672,145
The Group
28. Subordinated capital
29. Equity
Share capital
Participation capital
Capital reserves
Aggregate results
Minority interests
Total
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
253,000
298,765
697,838
1,667,813
114,855
253,000
298,765
697,838
1,110,018
115,890
3,032,271
2,475,511
In accordance with its articles, Raiffeisenlandesbank Oberösterreich’s share capital as at 31 December 2010 was EUR 253,000
thousand (previous year: EUR 253,000 thousand). It consists of 714,578 (previous year: 714,578) ordinary shares and 749,294
(previous year: 749,294) preferred shares. As at 31 December 2010, the participation capital came to EUR 298,765 thousand (previous year: EUR 298,765 thousand).
Capital reserves amounting to EUR 410,859 thousand were set aside in conjunction with the transfer of bank business from the
former Raiffeisenlandesbank Oberösterreich reg. Gen.m.b.H. to Raiffeisenlandesbank Oberösterreich Aktiengesellschaft in financial year 2004, and EUR 136,987 thousand resulting from a premium for a new issue of preferred shares in 2007. In connection
105
with an additional payment in accordance with Section 229 (2) line 5 of the Austrian Business Code, capital reserves increased
by EUR 149,992 thousand in financial year 2008.
In the 2010 financial year dividends of EUR 15,317 thousand were paid on the preferred shares and EUR 10,581 on participation
capital in accordance with the decision made at the annual general meeting concerning the use of the profit from 2009. The dividend per preferred share was EUR 20.44. The recommendation of the Managing Board as to the use of the profit from 2010 will
be to pay a dividend of EUR 12,571 thousand on the preferred shares and EUR 9,379 thousand on the participation capital. This
means that the planned dividend for each preferred share will be EUR 16.78.
Changes in the AfS reserves
As at 1 Jan.
Changes in the valuation of AfS securities
Amounts transferred into the income statement
of which through sale of AfS assets
of which from redesignated AfS assets
As at 31 Dec.
2010
2009
in EUR ‘000
in EUR ‘000
- 25,451
12,538
8,603
- 2,849
11,452
- 5,285
- 85,173
64,114
15,515
1,399
14,116
- 19,907
- 9,595
- 25,451
The Afs provisions reflect changes in valuation recorded under equity with no effect on the consolidated profit and loss account
of financial instruments in the category „Financial assets available for sale (AfS)” in accordance with IAS 39.
Hedging of net investments in a foreign business
2010
2009
in EUR ‘000
in EUR ‘000
As at 1 Jan.
Change in value from the hedging of net investments
- 202
- 2,628
657
426
- 696
68
As at 31 Dec.
- 2,173
- 202
Exchange rate hedging transactions for investments in economically independent entities are recorded as hedging of net investments, in accordance with IAS 39.102. Hedge positions represent refinancing in foreign currency.
106
Annual Report 2010
Risk Report
Summary
The risk policy that has been sanctioned by the Raiffeisenlandesbank Oberösterreich Managing Board serves as a guideline
for the other Group companies.
The Managing Board and all employees act in accordance with
these risk policy principles and make decisions on the basis of
these guidelines. Risk management is organised in such a way
that conflicts of interest both on a personal level and at the organisation unit level are avoided.
For the main types of risks, Raiffeisenlandesbank Oberösterreich strives to operate a risk management system on a level
which at least corresponds to that of institutions of a similar
structure and size (best practice principle) and is primarily
aimed at the continuation of the company as a going concern.
Raiffeisenlandesbank Oberösterreich in general only aims its
exposure at areas of the business in which it has the requisite expertise in the assessment of the specific risks. Before
it moves into new areas of business or products, the Group
always carries out an adequate analysis of the risks posed by
that specific business.
The Managing Board and the Supervisory Board of the Raiffeisenlandesbank Oberösterreich are informed promptly of the
bank’s risk situation by means of comprehensive, objective
reports. All the quantifiable risks (in particular market, credit,
liquidity and operational risks) to which Raiffeisenlandesbank
Oberösterreich is exposed are monitored and coordinated with
the Group’s overall strategy.
All the quantifiable risks are monitored on the basis of the
Group-wide risk-bearing capacity. The aim of the risk early
identification and risk monitoring systems is to ensure the qualified and timely identification of all major risks.
Risk Controlling analyses all risks and examines adherence
to the defined risk limits by means of ongoing projection and
actual comparisons. Internal/Group Auditing assesses the effectiveness of working procedures, processes and internal
controls.
Risk management in the subgroup Gesellschaft zur Förderung
agrarischer Interessen in Oberösterreich GmbH is decentralised in the individual Group companies. In addition to credit
risk, the subgroup is confronted with purchasing and sales
related price risks. These result from the global supply and
demand situation in the commodities markets and the industry-related intensity of competition.
Risk management organisation
The Managing Board of Raiffeisenlandesbank Oberösterreich
bears responsibility for all risk management activities. It approves the risk policy in accordance with the business strategies, the risk principles, procedures and methods of risk
measurement and the risk limits. The Chief Risk Officer (Managing Board member) is responsible for controlling all quantifiable risks, including in particular credit risks, market risks,
liquidity risks and operational risks, of Raiffeisenlandesbank
Oberösterreich and for developing and implementing the overall risk strategy.
The Controlling organisational unit is responsible for the identification and measurement of risks in cooperation with the organisational units charged with them.
Controlling is also responsible for the development and provision of risk measurement methods and IT systems and provides the result and risk information required for active risk
management.
The Committee for Product Approval ensures that the risks
have been adequately portrayed for new products as well, and
that they have been handled in accordance with the regulations. During the approval process, the committee not only
reviews the risk measurement but also market topics, legal
admissibility, supervisory stipulations and general questions
about carrying out business. The result of the approval process
must be recorded in writing by the responsible organisational
units. New products /product variants must be submitted to
the Managing Board of Raiffeisenlandesbank Oberösterreich
for approval before the first transaction is completed – together
with all necessary statements and opinions.
The Country Risk Committee is responsible for managing the
country risk. Business transactions that result in a country risk/
country exposure may only be carried out when the resulting
country risk/country exposure is within the approved limit.
107
The Group
Raiffeisenlandesbank Oberösterreich Group‘s long-term success has largely been due to active risk management. In order
to achieve this objective, as the dominating Group company,
Raiffeisenlandesbank Oberösterreich has implemented a risk
management system which allows the identification and measurement of all risks within the Group (market, credit, liquidity
and operational risks) and their active managerial control.
Modifications and enhancements of risk management are continuously documented in the Risk Management Manual.
The further development of the existing risk management system (identification, measurement, control) is the responsibility
of the Controlling business area in coordination with the Chief
Risk Officer and the Managing Board, the Reporting/Liability
organisational unit (focus on counterparty risk) and the employees competent for assessing operating risk.
Legally independent Group units and their boards are responsible for the risk policy of their business unit and only enter into
risks if they are in harmony with the established risk policy of
Raiffeisenlandesbank Oberösterreich.
To assess Group risks, the Risk Controlling organisational unit
identifies and measures the risks in cooperation with the Group
members. Business-related manifestations in the risk measurement procedure are coordinated with the Risk Controlling
organisational unit. A high degree of standardisation has the
purpose of ensuring a comparable consolidation of the Group
risks.
Market risks
Market risks take the form of changes in interest rates, currency and exchange rates relating to securities, interest rate
and foreign exchange items.
The excess risk from all customer transactions is insured.
The market risks are measured every day with the value-at-risk
index for the trading and bank books. This indicates a possible
loss which, with 99% probability, will not be exceeded during
a specified holding period. The assumed holding period is one
day for the trading book and one month for the bank book. The
calculations are made using the variance-covariance method
in the trading book and a historic simulation in the bank book.
The market risks are managed using a limit system based on
the value at risk. All market risk activities are assigned a risk
limit which is included in full in the risk capacity analysis.
In addition to the value-at-risk index, the following limits are
used for risks: Stop loss, scenario analyses and volume limits.
The value-at-risk figures for Raiffeisenlandesbank Oberösterreich and Salzburger Landes-Hypothekenbank AG are calculated on a daily basis. Reports to the full Managing Board are
made every day for the trading book and on a monthly basis for
the bank book. The Board member responsible for the treasury
is also informed of the bank book every day.
The basis for all business is a balanced risk/reward ratio.
The other fully consolidated Group companies minimise their
market risks through punctual re-financing via Raiffeisenlandesbank Oberösterreich.
The Raiffeisenlandesbank Oberösterreich Group also uses the
principle of diversification on the basis of business partners,
products, regions and sales channels to reduce its risks. In
addition, derivative transactions are conducted almost exclusively with banks with which collateral agreements are in place.
Shifts in the interest, currency and share price landscape can
have a major influence on results and the risk situation. Therefore, Raiffeisenlandesbank Oberösterreich simulates possible
changes in risk parameters and reports the consequences the
Managing Board.
The strict division of labour between front, middle and back
office and risk controlling ensures that risks can be described
comprehensively, transparently and objectively to the Managing Board and supervisory authorities.
The following table shows the value-at-risk figures for the Raiffeisenlandesbank Oberösterreich Group (confidence level 99%,
holding period one month) as at 31 December 2010. The value
at risk of the trading book with a holding period of one day
was rescaled to a holding period of one month due to its insignificance and has not been shown separately. As a result
of detailed interest-rate risk analyses, a separation between
interest-rate and spread risk was introduced in 2010:
New products and markets are evaluated in an approval process and then authorised by the Managing Board.
The primary objective of trading activities in the Finance Trade
Center is customer transactions. The trades and the market
price risk are limited by an extensive limit system. All trading
positions are valued every day at market prices.
The strategic alignment and positioning in the bank book are
presented to the Managing Board on a weekly basis and further
procedure is then agreed. No open liquidity positions are entered into for deadline transformation purposes. Raiffeisenlandesbank Oberösterreich only enters into foreign currency risks
on a very limited basis. All market price risks from customer
transactions are recorded and valued in the bank book.
108
Annual Report 2010
Raiffeisenlandesbank
Oberösterreich Group
Total
Interest
Spread
Currency
Shares
Volatility
31 Dec. 2010
in EUR ‘000
57,814
59,780
37,956
232
31 Dec. 2009
in EUR '000
75,475
76,811
155
20,086
6,967
16,998
9,401
To check the forecast quality of the value-at-risk figures, backtesting is carried out on a daily basis. This means that the actual
results are compared to the values forecast by the value-at-risk
model. This back-testing confirms the validity of the statistical
methods used.
In addition, stress tests are conducted to take account of risks
in the event of extreme market movements. The crisis scenarios
include the simulation of large fluctuations in the risk factors and
are designed to highlight potential losses which are not covered
by the value-at-risk model. The stress scenarios comprise both
the extreme market fluctuations which have actually occurred
in the past and also a series of standardised shock scenarios
involving interest rates, share prices, currency exchange rates
and volatility. On the basis of the value losses simulated by these
stress tests, we analyse whether the market risks we review are
reasonable in relation to our equity capital on a quarterly basis.
A stress test with a 200 basis point interest rate shift was performed for the bank book. The valuation functions of the financial
instruments based on full valuation were used to measure the
individual financial instruments. This procedure precisely takes
into account the gamma risk of interest rate options. Termination
rights of the customers or Raiffeisenlandesbank Oberösterreich
are depicted as options in the calculation. For example, the probability of early repayment by the customer rises in direct proportion to a reduction of the market interest level compared to
the customer-specific conditions. If financing is cancelled early –
without a corresponding right of termination – the resulting costs
are charged to the customers. Deposits of indefinite duration are
treated like daily maturing deposits.
The following table shows the results of the stress test as at 31
December 2010:
(in EUR '000)
EUR
USD
GBP
CHF
JPY
CZK
Other currencies
+ 200 BP
- 173,252
- 10,298
2,540
- 11,845
- 2,441
- 7,419
- 94
- 200 BP
105,234
4,690
- 4,712
7,380
663
8,580
11
The stress test shows the change in present value when
the yield curve is shifted in parallel by one and two per cent
respectively.
Credit risk
The credit risk constitutes the risk to the bank that a loss will occur
as a result of the non-fulfilment of the contractual obligations of
customers or contractual partners. Credit risk is mainly generated
by the claims against customers and banks and from securities
from the bank book.
A report on the credit risk is given to the Managing Board once
each quarter, or as needed. For the purposes of the Group’s risk
reporting, it takes into account all elements of credit risk claims,
such as the risk of insolvency of individual debtors, country and
sector risks.
The industry distribution of the credit portfolio is checked for
correlation risks four times a year. The maximum exposure of
individual borrowers or groups of associated customers is only
permitted up to the upper limit for large-volume investments. The
prerequisites are business policy and strategic interests of the
Raiffeisenlandesbank Oberösterreich Group along with the flawless creditworthiness of the borrower. The credit volume in foreign
currency is also limited.
For risk management purposes, the securities in the trading
book are handled separately; they are included in the report on
market risk.
The principles of the customers’ credit ratings are incorporated
in the „Credit Risk Management“ manual. This set of regulations
is a compact representation of the standards valid for Raiffeisenlandesbank Oberösterreich, which are in accordance with
the international “Basel II” standards.
An organisational separation between front and back offices was
already implemented some years ago. Moreover, in order to measure the credit risk, following an international bank rating, financing
is divided into creditworthiness and risk classes. The risk class of a
borrower accordingly comprises two dimensions - recording and
assessing their financial situation and their provision of securities.
Both hard and soft facts are employed as creditworthiness criteria.
In corporate customer business, soft facts are also defined systematically during discussions with the company and then adjudged.
The rating systems are distinguished on the basis of the claim classes of corporates, retail customers, banks and securities issuers
and states.
Since 2005, a scoring system has been employed for the automatic classification of small volume business with employed retail
customers.
The credit rating systems are validated on an on-going basis
and undergo further development if necessary.
109
The Group
As at 31 December 2010, total value at risk was EUR 57.8 million which was EUR 17.7 million lower than on 31 December
2009.
The following rating classes are used for internal rating in the Raiffeisenlandesbank Oberösterreich Group:
S&P
Moody’s
AAA
Aaa
AA+
Aa1
AA
Aa2
AA-
Aa3
A+
A1
A
A2
A-
A3
BBB+
Baa1
BBB
Baa2
BBB-
Baa3
BB+
Ba1
BB
Ba2
BB-
Ba3
B+
B1
B
B2
B-
B3
CCC+
Caa1
CCC
Caa2
CCC-
Caa3
CC
Ca
C
D
C
10 point scale
Annual Report 2010
Text
0.5
0.5
Risk-free
1
1
outstanding creditworthiness
1.5
1.5
excellent creditworthiness
2+
good creditworthiness (+)
2
good creditworthiness
2-
good to average creditworthiness
2.5
average creditworthiness
3+
satisfactory creditworthiness (+)
3
satisfactory creditworthiness
2
2.5
3
3.5
3-
mediocre creditworthiness (-)
3.5
poor creditworthiness
4+
very poor creditworthiness (+)
4
very poor creditworthiness
4.5
4.5
in danger of default
5
5
default criteria reached
4
Individual rating classes are defined and delineated by means
of calculations which assess mathematical default probabilities, the written specification is only for elucidatory purposes.
The above transition to external ratings reflects the experience
to date.
110
Subclasses
Addendums showing +/- do not represent main rating classes,
they simply aim to enhance pricing accuracy. Moreover, default probabilities are the basis for transitions to external rating
classes.
Overall financial structure listed by balance sheet items
Cash reserves (credit balance at central banks)
Trading assets
Financial assets
Total
Contingent liabilities
Credit risks
Total
Total maximum credit exposure
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
99,210
6,868,753
18,191,936
1,560,917
4,959,969
31,680,785
59,236
7,442,496
17,422,897
1,237,794
5,469,384
31,631,807
3,662,550
5,994,009
9,656,559
2,662,347
5,635,845
8,298,192
41,337,344
39,929,999
The Group
Maximum credit risk exposure pursuant to IFRS 7.36 a
Collateral for overall financial structure
The stated collateral values correspond to the values determined within internal risk management. They communicate the conservative expectation of receipts in the event of any necessity for settlement of existing credit commitments.
Collateral values pursuant to IFRS 7.36 b
Trading assets
Financial assets
Total
Credit risks
Total
Total collateral values
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
1,973,529
7,756,872
1,084,263
789,870
11,604,534
12,563
6,648,486
116,897
259,800
7,037,746
547,161
863,530
1,410,691
640,587
720,618
1,361,205
13,015,225
8,398,951
In 2010, 38.3% (previous year: 54.5%) of the total collateral values consisted of collateral on immovable goods (i.e. mortgages,
rankings).
24.3% of the stated collateral values arise from the standards implemented in 2010 for the measurement of collateral for banks
and derivatives and relate to covered securities, credit default swaps, the netting of interbank securities accounts and of derivatives including transfers of collateral.
111
Sector structure/Correlation risk
Maximum credit risk exposure by sector group
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Bank
Real estate projects, property management and residential building management
Public sector and non-profit organisations
Retail (natural persons)
Finance leasing institutions
Finance holdings
Supplementary construction trade
Engine and plant construction
Construction
Automotive
Foodstuffs
Metal production and processing
Consumer goods
Energy and utilities
Transport (goods, people, on land, on water)
Electronic/electrical
Tourism
Subtotal
Other
11,705,652
4,865,871
2,807,006
2,708,777
1,859,718
1,746,540
1,431,048
1,314,508
1,114,460
961,454
932,736
878,633
877,654
769,166
576,536
552,129
442,757
35,544,645
5,792,699
12,857,335
5,418,750
2,304,095
1,604,855
1,802,718
1,709,151
1,209,351
1,212,705
1,047,665
853,847
892,913
813,982
703,499
564,932
562,619
462,149
433,142
34,453,708
5,476,291
Total
41,337,344
39,929,999
The Raiffeisenlandesbank Oberösterreich banking group had ten large-volume investments (excluding large-volume investments
in fully consolidated subsidiaries) with credit exposure amounting to EUR 9,761 million at the end of 2010. Four of these largevolume investments come from the commercial sector, four from the banking sector and two from the public sector. Seven commitments exhibited very low / low risk ratings; three large-volume investments were classified as exhibiting normal risk.
Geographic distribution of the loans and advances to customers
Austria: 66.6% (previous year: 66.6%)
Germany: 18.2% (previous year: 17.2%)
Hungary: 2.9% (previous year: 3.2%)
Czech Republic: 3.4% (previous year: 3.2%)
Croatia: 1.6% (previous year: 1.8%)
Romania: 1.5% (previous year: 1.8%)
Others: 5.8% (previous year: 6.2%)
112
Annual Report 2010
Rating structure for credit risk exposure which is neither overdue nor impaired
The quality of the financial assets which are neither overdue nor impaired are depicted as follows on the basis of the internal rating classification:
Rating classes 0.5 to 1.5
Rating classes 2+ to 3+
Rating classes 3 and poorer
Very low / low risk
Cash reserves (credit balance at central banks)
Trading assets
Financial assets
Credit risks
Total
Normal risk
Increased risk
2010
2009
2010
2009
2010
2009
in EUR '000
in EUR '000
in EUR '000
in EUR '000
in EUR '000
in EUR '000
99,210
6,081,277
5,468,003
1,482,290
3,928,783
981,872
2,138,914
59,236
6,896,271
5,301,052
1,176,696
4,531,269
979,762
1,913,963
676,678
8,956,215
70,261
877,057
2,321,537
3,288,221
476,106
8,096,872
45,198
761,656
1,304,868
2,996,463
99,925
2,577,919
8,366
152,929
359,141
566,874
66,399
2,964,844
15,900
163,981
377,717
725,419
20,180,349
20,858,249
16,189,969
13,681,163
3,765,154
4,314,260
The Group
Very low / low risk:
Normal risk:
Increased risk:
Structure of overdue or impaired credit risk exposure
Carrying amounts of overdue or impaired financial assets:
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Financial assets
10,873
1,189,799
1,200
3,719
1,060,130
12,478
Total
1,201,872
1,076,327
113
Collateral relating to overdue or impaired credit risk exposure
The following value-based collateral applies to the overdue or impaired financial assets:
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
570,728
583,197
Total collateral values
570,728
583,197
The securities valuations of impaired credit risk exposure are assessed without delay - and correspond to the conservative, prospective long-term earnings through realisation.
In 2010, 52.1% (previous year: 44.1%) of the total collateral values relating to overdue or impaired credit exposure consisted of
collateral on immovable goods (i.e. mortgages, rankings).
Age structure of overdue credit risk exposure
The financial assets which were overdue but not impaired upon balance sheet date exhibit the following age structure:
114
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
up to 30 days
31 to 60 days
61 to 90 days
over 90 days
333,921
36,802
20,491
45,014
138,560
42,824
28,311
43,622
Total
436,228
253,317
Annual Report 2010
Impaired credit risk exposure
The financial assets which were individually determined to be impaired upon the balance sheet date, exhibit the following
structure:*
Gross value
Risk provisions
Carrying amount
Collateral
2010
2009
2010
2009
in EUR '000
in EUR '000
in EUR '000
in EUR '000
22,463
- 18,133
4,330
22,724
- 22,724
0
1,438,166
- 678,052
760,114
1,431,880
- 621,348
810,532
0
0
337,840
419,087
The Group
*Amounts without portfolio value adjustment
Circumstances that trigger the building of risk provisions are above all when the debtor is experiencing economic or financial
difficulties, shows a high danger of default or does not make the interest or principal payments. This is based on internal risk
management’s ongoing controlling of the counterparty and credit case.
Non-performing loans (NPL ratio) among the loans and advances to banks and customers amounted to 1.69% in 2010 (previous
year 1.35%).Non-performing loans are defined as advances having a credit rating of 5 (corresponds to Moody‘s Ca rating or
Standard & Poor‘s CC rating or worse).
Solvency-related impairment of securities in the category „financial assets available for sale (AfS)“, „financial assets held to maturity“ and „loans and receivables“ are recorded as value adjustments. In 2010, these value adjustments on debt capital securities
came to EUR 4,653 thousand (previous year: EUR 6,993 thousand). The carrying amount of these adjusted securities was EUR
1,200 thousand as at 31 December 2010 (previous year: EUR 12,478 thousand). Triggering events include substantial financial
difficulties of the issuer, significant worsening of ratings and the default of interest payments or repayments. Reversals of value adjustments made on borrowed capital in previous years amounted in 2010 to EUR 2,126 thousand (previous year: EUR 0 thousand).
Credit risk also results from the debtor default risk of the subgroup Gesellschaft zur Förderung agrarischer Interessen in Oberösterreich GmbH. From the perspective of the Group as a whole, however, its debtor portfolios are of minor significance and are
also partially covered by credit insurance.
115
Credit-value-at-risk
Credit-Value-at-Risk is assessed monthly for all assets exhibiting address default risk. Risk may arise due to credit default or worsening of creditworthiness - and it is communicated
through the key figures expected loss, unexpected loss and
credit-value-at-risk.
The expected loss represents the most probable value decrease of a given portfolio. This specified decrease in value should
be expected each year. This loss is covered by the calculated
risk costs. The unexpected loss represents a portfolio‘s possible loss beyond the expected loss, and thus communicates
possible negative deviation from the expected loss. The unexpected loss is covered by the equity capital.
The aggregate of expected loss and unexpected loss results
in the credit-value-at-risk. The credit-value-at-risk is the maximum loss that can possibly arise within a single year, and
which - with a certain amount of probability - will not be exceeded. Raiffeisenlandesbank Oberösterreich calculates unexpected loss at probabilities of 95%, 99% and 99.9%.
The calculation is carried out by RiskMetrics’ credit manager
program. Credit-value-at-risk is assessed with adherence to diversification effects within the portfolio. The asset value model
is applied to this end.
Liquidity risk
The liquidity risk encompasses the risk of not being able to fulfil
one‘s payment obligations by the due date or, in the case of a
liquidity shortage, of not being able to acquire enough liquidity
at the terms expected (structural liquidity risk).
Liquidity and liquidity risk is managed under a standardised
model which, besides normal circumstances, also encompasses stress scenarios arising from reputational risk, systemic
risk, a non-performing loan or a crisis involving several risks. To
this end the following key figures are determined:
The operational liquidity maturity transformation ratio (abbreviated in German to “O-LFT”) for operational liquidity
for up to 18 months is formed from the ratios of assets to
liabilities accumulated from the beginning over the maturity
band.
For the structural liquidity maturity transformation (“SLFT”), the key figure is formed by taking the ratios of assets
to liabilities calculated by going backwards from the end of
the maturity band.
The GBS (German abbreviation for the gap between the
ratio total and total assets) ratio is formed by taking the ratios of the net positions per maturity band to total assets
and shows any excessive funding risks.
The following are the key pillars for managing liquidity and liquidity risk at Raiffeisenlandesbank Oberösterreich:
Operational liquidity is also measured, in addition to the aforementioned O-LFT, against liquidity-at-risk.
To quantify the funding risk, a simulated downgrading of
the rating for Raiffeisenlandesbank Oberösterreich is calculated. The risk capital requirements are formed by the
present-value difference between funding at the present
conditions and at the simulated altered rating.
Funding Raiffeisenlandesbank Oberösterreich has a broad
base. It proceeds in accordance with the principles of diversification and balance.
A quantitative liquidity emergency plan is prepared on a
monthly basis.
Ensuring that there is sufficient liquidity takes top priority at
Raiffeisenlandesbank Oberösterreich as the central institution
for the Raiffeisen Banking Group Upper Austria. Liquidity has
to be safeguarded at all times.
116
Annual Report 2010
The following table summarises the maturities of the non-discounted liabilities including the respective interest payments and
depicts the earliest possible utilisation of guarantees and credit approvals:
Trading liabilities
Total
Credit risks
31 Dec. 2009
Trading liabilities
Total
Credit risks
up to 3
months
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
3,788,702
3,407,228
145,370
40
0
7,341,340
3,662,550
5,994,009
1,981,064
1,904,600
412,367
197,922
17,068
4,513,021
0
0
784,193
1,260,619
1,030,274
534,248
87,170
3,696,504
0
0
2,983,652
1,765,566
4,690,734
2,706,170
1,067,974
13,214,096
0
0
2,845,863
1,614,615
2,953,449
4,154,577
1,789,301
13,357,805
0
0
12,383,474
9,952,628
9,232,194
7,592,957
2,961,513
42,122,766
3,662,550
5,994,009
Payable on
demand/no
term
up to 3
months
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
4,850,263
3,708,419
2,137
341,278
0
8,902,097
2,662,347
5,635,845
1,836,951
1,594,804
319,535
130,854
26,403
3,908,547
0
0
1,593,693
889,862
817,576
473,420
50,736
3,825,287
0
0
2,611,542
1,714,788
4,765,432
2,025,671
535,270
11,652,703
0
0
2,758,238
1,513,314
3,509,987
6,341,906
1,839,302
15,962,747
0
0
13,650,687
9,421,187
9,414,667
9,313,129
2,451,711
44,251,381
2,662,347
5,635,845
3 months to 1
more than 5
1 to 5 years
year
years
3 months to 1
more than 5
1 to 5 years
year
years
Total
The Group
31 Dec. 2010
Payable on
demand/no
term
Total
117
From the gap analysis below it can be seen that there is no liquidity risk in the individual maturity periods. There is a large amount
of potential collateral available for tender transactions with the ECB and the Swiss National Bank for ongoing liquidity equalisation
as well as for other repurchase transactions.
Gap in EUR m.
31 Dec. 2010 1,600
31 Dec. 2009
Excess assets
(long position)
1,200
800
400
0
Excess liabilities
(short position)
-400
-800
-1,200
-1,600
up to 1 year
118
Annual Report 2010
1 to 3 years
3 to 5 years
5 to 7 years
7 to 10 years
over 10 years
The Group defines operational risk as being the risk of losses
derived from the inadequacies or failure of internal procedures,
people and systems, or external events.
The Group has used organisational and technical computing
measures in order to restrict this type of risk. A high degree of
security is attained by limit systems, competence regulations,
a risk-adequate internal control system, as well as scheduled
and unscheduled audits by Internal / Group Auditing in the individual group companies.
Risk-bearing capacity analysis
In the analysis of risk-bearing capacity the aggregate banking
risk of the entire Group is divided into credit risk, market risk,
refinancing risk, operational risk and other risks (= strategic
risk, reputational risk, equity risk and earnings risk) and compared with the risk coverage (= operating result, hidden reserves, provisions and equity). This comparison of the Group risk
with the available coverage depicts the risk-bearing capacity.
The goal of the self assessments done in the group is to make
an appraisal of the operational risks and to increase the awareness of operational risks (early warning system).
To limit operational risk, the subgroup Gesellschaft zur Förderung agrarischer Interessen in Oberösterreich GmbH maintains
production and quality assurance programs and is insured
against natural perils or product liability.
With this comparison, the Raiffeisenlandesbank Oberösterreich Group is able to guarantee that it can cover extremely
unexpected losses from its own funds without major negative
effects. Economic capital is the measurement of risk used to
calculate extremely unexpected losses. It is defined as the minimum amount of capital necessary to cover unexpected losses with a probability of 99.9% within one year.
119
The Group
Operational risks
Other information
Breakdown of remaining maturities
Breakdown of remaining maturities as at 31 December 2010
Trading assets
Financial assets
Trading liabilities
Payable on
demand/
no term
up to
3 months
3 months
to 1 year
1 to 5
years
more than
5 years
Total
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR '000
134,640
1,944,044
1,887,803
418,546
2,436,837
1,649,872
3,851,216
2,975,905
130,567
149,750
19,082
0
2,544,794
2,733,914
47,240
182,661
0
1,931,676
1,931,428
340,228
143,133
1,002
0
807,495
2,854,937
65,830
85,478
0
677,153
1,273,959
778,332
54,039
36,089
0
743,805
5,544,488
400,332
2,375,468
0
2,427,169
1,621,892
4,091,235
320,612
545,354
0
828,615
5,170,794
628,969
1,230,374
0
2,420,300
1,490,328
2,617,961
559,538
1,401,844
134,640
6,868,753
18,191,936
1,560,917
6,310,818
1,649,872
11,307,514
9,293,512
7,958,323
1,227,072
2,003,371
Breakdown of remaining maturities as at 31 December 2009
Trading assets
Financial assets
Trading liabilities
120
Annual Report 2010
Payable on
demand/
no term
up to
3 months
3 months to
1 year
1 to 5
years
more than
5 years
Total
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR '000
202,962
3,268,723
1,941,802
344,597
2,673,165
654,293
4,822,028
3,404,511
142,283
161,904
34,527
0
3,121,769
2,546,477
44,287
117,606
0
1,788,810
1,582,919
244,908
75,999
11,810
0
414,678
3,166,963
49,020
601,665
0
1,457,758
924,514
616,306
62,526
4,407
0
560,812
4,793,145
299,151
2,746,945
0
2,137,615
1,645,048
4,198,540
228,788
411,666
0
76,514
4,974,510
500,739
1,317,344
0
2,161,443
1,323,634
3,010,190
481,839
1,209,735
202,962
7,442,496
17,422,897
1,237,794
7,456,725
654,293
12,367,654
8,880,626
8,212,227
1,011,056
1,672,145
Loans and advances as well as amounts owed to related companies
Loans and advances as well as amounts owed to related companies as at 31 December 2010
Trading assets
Financial assets
Other assets
Trading liabilities
Other liabilities
Companies accounted
for at equity
Shares in companies
in EUR ‘000
in EUR ‘000
3,586,999
258,473
148,168
2,332,634
117
1,814,808
1,221
100,215
257
0
1,789,474
5,052
408,277
61,433
79,745
265,678
2,037
28,414
The Group
Loans and advances as well as liabilities of Raiffeisenlandesbank Oberösterreich to parent companies and companies in which
Raiffeisenlandesbank Oberösterreich holds shares are as follows:
Loans and advances as well as amounts owed to related companies as at 31 December 2009
Trading assets
Financial assets
Other assets
Trading liabilities
Other liabilities
Companies accounted
for at equity
Shares in companies
in EUR ‘000
in EUR ‘000
1,007,347
224,409
8,542
752,129
129
985,948
54,133
39,490
227
2,328,227
1,718,256
120,701
2,540,997
181,256
1,645,444
405,623
33,989
37,509
121
The uppermost parent company is a cooperative registered as Raiffeisenbankengruppe Oberösterreich Verbund which is not,
aside from its function as a holding, operationally active. As of the balance sheet date there were no material loans and advances
or amounts owed to the parent company.
Information about the companies accounted for at equity is recorded separately from other shares in companies. The latter
are holdings in companies that are neither fully consolidated nor accounted for at equity. As at 31 December 2010 EUR 15,000
thousand (previous year: EUR 15,000 thousand) are pledged to companies accounted for at equity and the bank is liable for up
to EUR 16,200 thousand (previous year: EUR 22,200 thousand) in valuation losses.
In the course of business relations with related companies, standard market conditions are applied. Loans and advances and
amounts owed pursuant to IAS 24 to members of key management (Managing Board and Supervisory Board of Raiffeisenlandesbank Oberösterreich, Managing Board of Raiffeisenbankengruppe Oberösterreich Verbund as a registered cooperative), their
families and companies controlled by these persons, are not shown due to the insignificant amounts, as these business relations
have no relevant impact on the financial statements.
Remuneration of the Managing Board and the Supervisory Board
Expenses for the remuneration of members of the Managing Board of Raiffeisenlandesbank Oberösterreich are spread out during
the financial year as follows:
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Ongoing payments
Post-employment benefits
Other long-term benefits due
2,666
1,909
6
2,774
1,647
- 20
Total
4,581
4,401
In 2010, reimbursements (including reimbursements for travel expenses) of EUR 517 thousand (previous year: EUR 466 thousand)
were paid to members of the Supervisory Board.
Advances and loans to members of the Managing Board
and the Supervisory Board
Advances and loans to members of the Raiffeisenlandesbank
Oberösterreich Managing Board and the Supervisory Board
consisted of EUR 231 thousand (previous year: EUR 408
thousand) to members of the Managing Board, and EUR 1,247
thousand (previous year: EUR 917 thousand) to members of the
Supervisory Board.
122
Annual Report 2010
Loans to members of the Managing Board and the Supervisory
Board are granted at standard bank conditions. Repayments
are made as agreed.
Contingent liabilities and credit risks
of which other indemnity agreements
of which other contingent liabilities
Credit risks
of which loan approvals/stand-by facilities
of which pseudo repo transactions
of which other credit risks
Assets assigned as collateral
As at 31 December 2010, securities to the amount of EUR 9,608
thousand (previous year: EUR 6,429 thousand) were held as
cover for trust fund deposits of EUR 12,499 thousand (previous year EUR 9,701 thousand). Securities to the amount
EUR 25,474 thousand (previous year: EUR 25,753 thousand
and loans and advances to customers to the amount of EUR
981,537 thousand (previous year: EUR 734,501 thousand)
were held as cover for mortgage bonds and municipal bonds.
Housing loans to the amount of EUR 359,744 thousand (previous year EUR 310,595 thousand) were held as cover for
housing bonds.
Securities with a carrying amount of EUR 1,738,838 thousand
(previous year: EUR 2,694,174 thousand) have been deposited as collateral at banks and stock exchanges. Of this,
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
3,662,550
3,662,445
105
5,994,009
5,969,479
0
24,530
2,662,347
2,662,268
79
5,635,845
5,577,770
33,790
24,285
securities with a carrying amount of EUR 365,462 thousand
(previous year: EUR 655,170 thousand) were purchased under
repurchase agreements. The passivated take-back obligation from the securities purchased under repurchase agreements amounts to EUR 442,130 thousand (previous year: EUR
672,458 thousand).
EUR 320,288 thousand (previous year: EUR 299,442 thousand)
were deposited at banks in collateral arrangements and EUR
16,332 thousand (previous year: EUR 15,000 thousand) are
pledged. Money claims to the amount of EUR 1,034,481
thousand (previous year: EUR 945,549 thousand) were ceded
to the Oesterreichische Kontrollbank. Outstanding debts of
were ceded to the European Investment Bank.
123
The Group
As at the balance sheet date the following off-balance-sheet obligations existed:
Lease Financing (Lessor)
Loans from Finance Lease are as follows:
Investment (gross)
Minimum lease payments
up to 1 year
from 1 to 5 years
over 5 years
Non-guaranteed residual values
Unrealised financial earnings
up to 1 year
from 1 to 5 years
over 5 years
Investment (net)
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
1,064,607
1,035,584
413,208
515,266
107,110
29,023
105,635
37,528
52,932
15,175
958,972
1,036,695
1,006,169
321,252
546,393
138,524
30,526
117,254
40,417
57,335
19,502
919,441
Adjustments to irrecoverable, outstanding minimum lease payments amount to EUR 51,817 (previous year: EUR 30,955).
The leased property holdings are structured as follows:
124
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Vehicle leasing
Real estate leasing
Lease of movables
510,125
145,046
303,801
487,905
158,898
272,638
Total
958,972
919,441
Annual Report 2010
Lease financing (Lessee)
The assets and future minimum lease payments below refer to finance lease agreements in which Raiffeisenlandesbank Oberösterreich is the lessee:
31 Dec. 2009
in EUR ‘000
in EUR ‘000
51,881
6,476
20,344
25,061
5,021
46,860
52,819
6,927
16,806
29,086
5,897
46,922
The Group
Minimum lease payments
up to 1 year
from 1 to 5 years
over 5 years
Interest share
Investment (net)
31 Dec. 2010
Operating leasing (Lessor)
The depicted future minimum lease payments below refer to irredeemable operating lease business operations in which Raiffeisenlandesbank Oberösterreich is the lessor:
up to 1 year
from 1 to 5 years
over 5 years
Total
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
20,232
49,522
33,801
16,975
46,138
17,491
103,555
80,604
The further operative earnings from Operating Leasing amount to EUR 16,407 thousand for the financial year 2010
125
Information based on Austrian accounting practices
Foreign currency trading volumes
The assets and liabilities below are recognised in foreign currencies in the consolidated financial statements:
Assets
Liabilities
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
3,545,382
3,524,132
3,493,622
2,804,525
Listed securities pursuant to § 64 of the Austrian Banking Act
Listed
Debt securities and other
interest securities
Shares and other variable
interest securities
Non-listed
31 Dec. 2010
31 Dec. 2009
31 Dec. 2010
31 Dec. 2009
in EUR '000
in EUR '000
in EUR '000
in EUR '000
3,146,868
3,288,468
0
0
44,734
108,571
0
0
Of the listed bonds and other fixed-interest securities, EUR 2,393,224 thousand (previous year: EUR 2,939,433 thousand) can be
allocated to the fixed assets.
Of the listed shares and other variable-yield securities, EUR 15,357 thousand (previous year: EUR 84,641 thousand ) can be allocated to the fixed assets.
Volume of securities trading in accordance with §22 of the Austrian Banking Act
Securities
Other financial instruments
Total
126
Annual Report 2010
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
79,437
49,803
49,410
37,130
129,240
86,540
Regulatory equity requirements
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
Tier 1 capital (core capital)
Tier 2 capital (supplementary capital)
Deduction of holdings in banks/financial institutions
Equity eligible for inclusion
Tier 3 capital (short-term supplementary capital)
2,383,893
1,784,577
- 247,763
3,920,707
2,087
1,998,846
1,568,375
- 244,977
3,322,244
927
Total equity
3,922,794
3,323,171
The Group
The equity of the Raiffeisenlandesbank Oberösterreich bank group in accordance with the Austrian Banking Act are divided as
follows:
The total equity requirement is divided up as follows:
Total back-calculated assessment basis
Equity requirements for the credit risk pursuant to § 22 (1) 1 of the Austrian Banking Act
Equity requirements for the types of risk in the trading book pursuant to § 22 (1) 2 of the
Austrian Act
Equity requirements for the operational risk pursuant to § 22 (1) 4 of the Austrian Banking
Act
31 Dec. 2010
31 Dec. 2009
in EUR ‘000
in EUR ‘000
26,553,788
2,043,314
2,087
24,589,406
1,895,708
927
78,902
70,518
Total equity requirement
2,124,303
1,967,153
Requisite equity, bank book
Requisite equity, trading book
Requisite equity, operational risk
Equity surplus
Coverage ratio in %
Core capital in %
Equity ratio in %
2,043,314
2,087
78,902
1,798,491
84.7
8.5
14.8
1,895,708
927
70,518
1,356,018
68.9
7.6
13.5
The core capital ratio refers to the “total back-calculated assessment basis”.
Within the framework of equity management, the main focus lies on securing adequate financial resources for the group and
maintaining regulatory equity requirements for the Raiffeisenlandesbank Oberösterreich banking group.
In accordance with §26 and §26a of the Austrian Banking Act and the disclosure regulations, the information is published on the
Raiffeisenlandesbank Oberösterreich’s website (www.rlbooe.at).
Average number of employees pursuant to §266 of the Austrian Business Code
31 Dec. 2010
Employees
of which VIVATIS/efko
Labourers
Total
2,878
731
1,477
1,457
4,355
2,188
31 Dec. 2009
2,878
727
1,482
1,465
4,360
2,192
127
Auditors fee pursuant to §266 of the Austrian Business Code
2010
Audit of the Financial Statements
Other confirmatory services
Tax consultancy services
Other services
KPMG Austria GmbH
Wirtschaftsprüfungsund Steuerberatungsgesellschaft
in EUR ‘000
2009
Österreichischer
Raiffeisenverband
KPMG Austria GmbH
Wirtschaftsprüfungsund Steuerberatungsgesellschaft
Österreichischer
Raiffeisenverband
in EUR ‘000
in EUR ‘000
in EUR ‘000
1,217
180
27
3
491
17
0
0
1,128
174
0
105
471
19
0
0
In accordance with § 237 l 14 of the Austrian Business Code, the fee for auditing the financial statements of subsidiary companies is published in the notes to the consolidated financial statements. This is the cumulative fee for auditing the Group‘s financial
statement (gross amounts) and those of the subsidiaries.
Additional information on terms according to §64 of the
Austrian Banking Act
In 2011, bonds and other fixed-interest securities held by Raiffeisenlandesbank Oberöstereich to the amount of EUR 788,115
thousand (2010: EUR 460,940 thousand) will mature, along
with bond issues of EUR 678,187 thousand (2010: EUR 263,654
thousand).
In the case of subordinated liabilities, the subordination is always agreed separately in writing pursuant to § 51 para 9 of the
Austrian Banking Act. The term and repayment are established
in a manner that permits allocation to equity in accordance with
§ 23 Para 8 subpara 1 of the Austrian Banking Act.
Expenses for subordinated liabilities
Expenses for subordinated liabilities in the 2010 financial year
totalled EUR 66,144 thousand (previous year: EUR 54,863
thousand).
approval. There were no events of particular significance after
the close of the 2010 business year.
The consolidated financial statements were compiled on
28 March 2011 and presented to the Supervisory Board for
The Members of the Board of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft
Information on the members of the Raiffeisenlandesbank Oberösterreich Managing Board and Supervisory Board can be found
on pages 10 to 15.
128
Annual Report 2010
Linz, 28 March 2011
The Group
THE MANAGING BOARD
Ludwig Scharinger
Hans Schilcher
Georg Starzer
Markus Vockenhuber
129
Audit Certificate
Report on the Consolidated Financial Statements
We have examined the attached consolidated financial statements of
Raiffeisenlandesbank Oberösterreich Aktiengesellschaft,
Linz,
for the financial year from 1 January to 31 December 2010,
including an inspection of the accounts. These consolidated
financial statements include the consolidated balance sheet as
at 31 December 2010, the group income statement, the group
cash flow statement and the group statement of changes in
equity for the financial year ending 31 December 2010, plus the
notes to the consolidated financial statements.
prevailing statutory provisions and the international standards
on auditing (ISA) as published by the International Auditing and
Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC). These standards require that we
plan and perform the audit in such a manner that we can form
a reasonable opinion as to whether the financial statements are
free of material misstatement.
Responsibility of the legal representatives
for the consolidated financial statements
and the accounts
The legal representatives of the company are responsible for
the Group accounting and for compiling consolidated financial
statements that present a true and fair view of the assets, financial position and earnings of the company in accordance
with the International Financial Reporting Standards (IFRS), as
they are applied in the EU. This responsibility includes: the design, implementation and maintenance of an internal control
system, to the extent that this is necessary for the preparation of the consolidated statements and to present as true a
picture as possible of the group‘s net assets, financial position and profit situation so that these consolidated statements
are free from material misrepresentations, whether due to intentional or unintentional mistakes. It also includes choosing
and applying suitable accounting and valuation methods and
making estimates that appear appropriate under the existing
circumstances.
An audit includes the implementation of auditing actions to obtain auditing proof in respect of the amounts and other details
given in the consolidated financial statements. The choice of
auditing actions is left to the obligatory discretion of the auditor
of the consolidated financial statements, taking into account
his assessment of the risk of material misstatements occurring,
whether due to intended or unintended errors. In assessing this
risk, the auditor of the consolidated financial statements takes
into account the internal control system, insofar as it is important for compiling the consolidated financial statements and
presenting a true and fair view of the assets, financial position
and earnings of the company, in order to determine suitable
auditing actions taking account of the framework conditions,
not however to submit an auditing opinion about the effectiveness of the company’s internal control system. The audit
also included my evaluation of the adequacy of the applied
accounting and valuation methods and the essential estimates
made by the legal representatives of the company as well as
an assessment of the overall tenor of the consolidated financial
statements.
Responsibility of the auditor of the consolidated financial statements and description
of type and extent of the statutory audit
We believe that we have obtained sufficient and suitable auditing proof, so that our audit provides a reasonable basis for
my opinion.
Our responsibility lies in the submission of an audit opinion
on these Group financial statements on the basis of our inspection. Our audit was conducted in accordance with the
130
Annual Report 2010
Statement concerning the Group Management Report
The results of our audit gave no reason for objection. On the
basis of the knowledge gained during the audit, in our judgement the consolidated financial statements comply with the
legal regulations and present a true and fair view of the group’s
assets and financial position as at 31 December 2010 and the
group’s earnings and cash flow in the financial year from 1 January 2010 to 31 December 2010, in accordance with the International Financial Reporting Standards (IFRS), as they are
applied in the EU.
According to the Austrian legal regulations, the group management report is to be audited as to whether it is consistent with
the consolidated financial statements and whether or not other
details given in the group management report give a misleading impression of the group’s financial position. The auditor‘s
opinion must also include a statement as to whether the group
management report is consistent with the consolidated financial statements and whether or not the details according to §
243a para 2 of the Austrian Business Code apply.
In our opinion, the group management report is consistent with
the consolidated financial statements. The details according to
§ 243a para 2 of the Austrian Business Code apply.
Linz, 28 March 2011
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Martha Kloibmüller Chartered Accountant and Auditor
Cäcilia Gruber
Chartered Accountant and Auditor
131
The Group
Auditors‘ opinion
Audit Certificate
Report on the Consolidated Financial Statements
I have audited the attached consolidated financial statements of
Linz,
for the financial year from 1 January 2010 to 31 December
2010, including an inspection of the accounts. These consolidated financial statements include the consolidated balance
sheet as at 31 December 2010, the consolidated operating result, the group cash flow statement and the group statement
of changes in equity for the financial year ending 31 December
2010, plus the notes to the consolidated financial statements.
for the consolidated financial statements
and the accounts
the Group accounting and for compiling consolidated financial
statements that present a true and fair view of the assets, financial position and earnings of the company in accordance
with the International Financial Reporting Standards (IFRS), as
they are applied in the EU. This responsibility includes: the design, implementation and maintenance of an internal control
system, to the extent that this is necessary for the preparation of the consolidated statements and to present as true a
picture as possible of the group‘s net assets, financial position and profit situation so that these consolidated statements
are free from material misrepresentations, whether due to intentional or unintentional mistakes. It also includes choosing
and applying suitable accounting and valuation methods and
making estimates that appear appropriate under the existing
circumstances.
Responsibility of the auditor of the consolidated financial statements and a description of the type and scope of the statutory
audit
audit was conducted in accordance with the applicable Austrian legal regulations. These standards require that I plan and
perform the audit in such a manner that I can form a reasonable opinion as to whether the financial statements are free of
material misstatement.
given in the consolidated financial statements. The choice of
auditing actions is left to the obligatory discretion of the auditor
of the consolidated financial statements, taking into account
his assessment of the risk of material misstatements occurring,
whether due to intended or unintended errors. In assessing this
risk, the auditor of the consolidated financial statements takes
into account the internal control system, insofar as it is important for compiling the consolidated financial statements and
presenting a true and fair view of the assets, financial position
and earnings of the company, in order to determine suitable
auditing actions taking account of the framework conditions,
not however to submit an auditing opinion about the effectiveness of the company’s internal control system. The audit
also included my evaluation of the adequacy of the applied
accounting and valuation methods and the essential estimates
made by the legal representatives of the company as well as
an assessment of the overall tenor of the consolidated financial
statements.
I believe that I have obtained sufficient and suitable auditing
proof, so that my audit provides a reasonable basis for my
opinion.
My responsibility lies in the submission of an audit opinion on
these financial statements on the basis of my inspection. My
132
Annual Report 2010
Statement concerning the Group Management Report
The results of my audit gave no reason for objection. On the
basis of the knowledge gained during the audit, in my judgement the consolidated financial statements comply with the
legal regulations and present a true and fair view of the group’s
assets and financial position as at 31 December 2010 and the
group’s earnings and cash flow in the financial year from 1 January 2010 to 31 December 2010, in accordance with the International Financial Reporting Standards (IFRS), as they are
applied in the EU.
According to the Austrian legal regulations, the group management report is to be audited as to whether it is consistent with
the consolidated financial statements and whether or not other
details given in the group management report give a misleading impression of the group’s financial position. The auditor‘s
opinion must also include a statement as to whether the group
management report is consistent with the consolidated financial statements and whether or not the details according to §
243a of the Austrian Business Code apply.
Vienna, 28 March 2011
Auditor appointed by the Österreichischer Raiffeisenverband (austrian Raiffeisen Association):
Christian Loicht
133
The Group
Auditing opinion
2010 Management Report
1. Business development and the economic situation
1.1. Business development
In 2010 Raiffeisenlandesbank Oberösterreich Aktiengesellschaft was able to show a very solid development of the business, continuing its successful path and the steady upwards
trend. The results achieved confirm that the business model,
based on security, trust, a unique level of customer orientation, predictability and sustainability is highly successful for
our customers.
all over Germany. The award is conferred on a bank that has
earned merit through special commitment to the support and
advancement of medium-sized enterprises and the development of financial structures.
1.3. Financial and non-financial performance indicators
Human resources management
Raiffeisenlandesbank Oberösterreich has a coordinating function within the Raiffeisen Banking Group Upper Austria and
strives to help its owners, the Upper Austrian Raiffeisen banks,
maintain a strong relationship with the customers in their respective regions. This ensures that Raiffeisen Upper Austria is
and will continue to be the regional provider of local banking
services in Austria and accordingly the defining factor in the
province of Upper Austria.
Bank branches
On 31 December 2010 Raiffeisenlandesbank Oberösterreich
had 19 bank branches in the greater Linz and Traun urban area.
The number of customers could be further increases and has
reached 76,403 customers in the meantime, this corresponds
to an increase of 3.1%. Roughly 200 qualified and motivated
employees are available for comprehensive support of private
and business customers.
At the Raiffeisenlandesbank Academy, which was founded to
build up future managers, high-potential employees with individual training programmes are promoted and prepared for
deployment in strategically important positions and tasks.
Competitive because of our high risk-bearing capacity
90
83.4
80
70
60
50
45.8
40
43.3
40.2
2010
30
2009
For the second time already (the first time was in 2008), the
Oskar-Patzelt Foundation named Raiffeisenlandesbank Oberösterreich „Bank of the Year“ in 2010 as part of the „Großer
Preis des Mittelstandes”. Raiffeisenlandesbank Oberösterreich prevailed in competition with 35 nominated banks from
Development of the cost/income ratio (in %)
2008
Raiffeisenlandesbank Oberösterreich has been active in
Southern Germany for 19 years. In addition to locations in
Passau, Nuremberg, Munich, Regensburg, Landshut, Ulm
and Würzburg, the Southern German branch has had a location in Heilbronn since early 2008. Raiffeisenlandesbank
Oberösterreich’s main focus in Southern Germany is supporting corporate customers and in the superior private banking sector as well as supporting the public sector through
Public Private Partnerships.
The cost-income ratio, which reflects a bank’s risk-bearing capacity and efficiency, was improved further in 2010.
1985
“Bank of the Year 2010” in Germany
Annual Report 2010
With a tailor-made overall design, Raiffeisenlandesbank Oberösterreich added new momentum to the training and development of apprentices in 2010. This paves the way to college for
our next generation of bankers.
Cost efficiency increases the risk-bearing capacity and makes
an important contribution to our high level of competitiveness
and creative power.
1.2. Branches
134
As at the 2010 balance sheet date, Raiffeisenlandesbank Oberösterreich had a banking staff of 898 and thus offered a large
number of top quality full and part-time jobs (part-time quota:
11.4%).
Management Report 2010
Liabilities with a fixed term or a period of notice amounted to
EUR 8,708 million as at 31 December 2010, of which EUR 2,536
million were long-term refinancing instruments of the Upper
Austrian Raiffeisen banks.
The ratio of operating expenditure to operating income calculated using the operative result was lowered in 2010 to 3.1
percentage points. In a banking comparison, the cost/income
ratio of 40.2% in 2010 was extremely favourable. In 2010, for
every euro earned, only 40.2 cents were consumed by costs.
In addition, there are long-term refinancing instruments totalling EUR 6,172 million from borrower‘s notes and subsidy providers such as
Oesterreichische Kontrollbank,
European Investment Bank,
EBRD – European Bank for Reconstruction and Development,
KfW Bank Group,
LfA Förderbank Bayern and
LBank – Federal Bank for Baden-Württemberg.
With its high risk-bearing capacity, Raiffeisenlandesbank Oberösterreich is capable of financing the diverse opportunities that
arise for companies and their employees.
The sustained positive development and stability of Raiffeisenlandesbank Oberösterreich are also demonstrated in our total
assets, which grew by EUR 682 million, or 2.3%, compared
with the end of the previous year‘s balance sheet date, to reach
EUR 30,042 million.
The volume of issues, which consisted of securitised loans of
EUR 5,820 million, supplementary capital of EUR 1,734 million
and subordinated liabilities of EUR 278 million, totalled EUR
7,832 million as of 31 December 2010. This represents an increase of 2.7% over the previous year.
Total asset development (in EUR bn)
30
27.2
29.4
30.0
25
20
10
Our special commitment to customers and the enormous trust
placed in Raiffeisenlandesbank Oberösterreich were reflected
in particular in the growth of deposits. Liabilities to customers
reported on the 2010 balance sheet date exhibited an attractive
increase of 7.6% over the preceding year to reach EUR 6,542
million. This figure related to savings of EUR 930 million and
payables on demand and fixed-term deposits of EUR 5,612
million.
5
2010
2009
2008
1.6
1985
0
Source of funds/capital structure
Equity
The increase on the liabilities side of the balance sheet derived mainly from a sharp increase in our own issues, as well as
the savings and giro deposits of our customers. The amounts
owed to banks decreased compared to the previous by by EUR
401 million or 3.0%, to EUR 12,841 million. Of this, EUR 4,133
million are payable on demand. And of this amount, deposits
in the amount of EUR 2,264 million were made to the Upper
Austrian Raiffeisen banks.
The total amount of equity to be taken into account at Raiffeisenlandesbank Oberösterreich pursuant to the Austrian Banking Code amounted to EUR 3,737 million at the end of 2010.
The statutory capital requirement was EUR 1,730 million. Despite strong growth in recent years, there was an equity surplus
of EUR 2,007 million on the balance sheet date.
31 Dec. 2010
in EUR m
31 Dec. 2009
in %
in EUR m
in %
Change
in EUR m
in %
Own issues
Savings and giro deposits
Equity
Other liabilities
12,841
7,832
6,542
2,349
478
42.7
26.1
21.8
7.8
1.6
13,242
7,625
6,080
1,943
470
45.1
26.0
20.7
6.6
1.6
- 401
207
462
406
8
- 3.0
2.7
7.6
20.9
1.7
Total assets
30,042
100.0
29,360
100.0
682
2.3
135
Unique customer orientation brings growth in deposits
15
was refinanced to Raiffeisen banks in Upper Austria. In addition, this includes loans and advances to Raiffeisen Zentralbank amounting to EUR 2,412 million.
An impressive growth in core capital amounting to EUR 120
million came from operating profit. These funds have been really earned by the bank and are not borrowed capital from the
stock market, not sold shares of the business or from a capital
increase. Of the hidden reserves amounting to a total of EUR
1,419 million, EUR 290 million were additionally used to create
equity. All in all, this brought core capital up to 2.3 billion (+21.4
per cent), which is equivalent to a core capital ratio of 10.3 per
cent.
High liquidity and creditworthiness in the portfolio
The amount of securities in the portfolio decreased in 2010 by
5.5% to EUR 4,918 million. At the end of the year, these consisted of EUR 616 million in public sector debt issues and similar
securities, EUR 2,384 million in bonds and other fixed interest
securities and EUR 1,918 million in shares and other variable
yield interest securities (e.g. pension funds).
Pursuant to the Austrian Business code, there is additional financial leeway amounting to EUR 700.5 million in tier-2 capital.
As an additional liquidity reserve, Raiffeisenlandesbank Oberösterreich holds a large portfolio of unrestricted securities collateral and loan collateral instruments which are recognised by
the Österreichische Nationalbank and can therefore be used at
any time for central bank refinancing.
Raiffeisenlandesbank Oberösterreich is in a very pleasing
equity situation for financing its further growth over the coming years. This will enable us to accompany our clients in a
sustainable manner.
Application of funds/assets structure
As in previous years, all securities, including those held as fixed
assets, were valued according to the strict lower of cost or
market principle.
Expanding our customers’ financial leeway
As at the 2010 balance sheet date there was a volume of EUR
15,561 million in loans and advances to customers. Compared to the year before, this amounts to an increase of EUR
789 million or 5.3%. For Raiffeisenbank Oberösterreich, as in
previous years, the emphasis remains on qualitative growth.
Even in difficult times, we focus mainly on the direct business
with our customers. Our activities are in line with our corporate
goal of helping to maintain and expand our customers’ financial leeway.
Holdings and shares in affiliated companies were expanded
compared to the previous year by EUR 83 million, of which
EUR 52.6 million is the result of rounding.
Income situation
In 2010, Raiffeisenlandesbank Oberösterreich again succeeded in maintaining its pleasing profit trend.
Increasing investment financing
Net interest income in 2010 was EUR 200.0 million, 7.0% higher than the comparable figure for the preceding year. In 2010,
Raiffeisenlandesbank Oberösterreich achieved an interest
margin of 0.67%, after 0.66% in the preceding year.
The income from securities and participating interests from
operating business come to EUR 133.1 million. This is equivalent to an increase of 14.6%. Because of the distribution of
reinvested results amounting to EUR 120.0 million this results
in total in an amount of EUR 253.1 million, which is equal to an
Raiffeisenlandesbank Oberösterreich has enough liquidity to
be able to continue actively and aggressively supporting its
customers with their successful projects. Investment financing
provided by Raiffeisenlandesbank Oberösterreich increased by
10.0% in 2010. Loans and advances to banks sank during the
course of 2010 by EUR 76 million to EUR 7,561 million. Of the
loans and advances at the end of the year, EUR 1,388 million
31 Dec. 2010
in EUR m
136
31 Dec. 2009
in %
in EUR m
in %
Change
in EUR m
in %
Securities
Holdings and investments in affiliated companies
Other assets
15,561
7,561
4,918
1,585
417
51.8
25.1
16.4
5.3
1.4
14,772
7,637
5,202
1,502
247
50.3
26.0
17.7
5.1
0.9
789
- 76
- 284
83
170
5.3
- 1.0
- 5.5
5.5
68.8
Total assets
30,042
100.0
29,360
100.0
682
2.3
Annual Report 2010
2010
2009
Change
in EUR m
in %Ø TA
in EUR m
in %Ø TA
in %
200.0
253.11
112.9
566.01
- 85.5
- 70.6
- 23.4
- 179.5
386.51
257.01
0.67
0.85
0.38
1.91
- 0.29
- 0.24
- 0.08
- 0.60
1.30
0.87
187.0
116.1
107.1
410.2
- 82.7
- 70.5
- 24.3
- 177.5
232.7
123.5
0.66
0.41
0.38
1.45
- 0.29
- 0.25
- 0.09
- 0.63
0.82
0.44
7.0
118.0
5.4
38.0
3.4
0.1
- 3.7
1.1
66.1
108.1
Profit for the year
432.12
1.45
119.1
0.42
262.8
Ø Total assets
29,701
Net interest income
Income from securities and investments
Other Income
Operating revenues
Personnel expenses
Operating expenses
Other Expenses
Total operating expenditure
Operating profit
Profit on ordinary activities
28,273
Includes dividend distributions of reinvested results amounting to EUR 120 million.
1
Includes dividend distributions of reinvested results and factoring in all hidden reserves to a total of EUR 290 million.
increase of 118.0%. With an increase of 38.0%, the operating
income is recorded at EUR 566.0 million. The income balance
from commission business in 2010 was 8.1% higher than in
2009, amounting to EUR 69.5 million.
General administrative expenses in 2010 comprised EUR 85.5
million in personnel expenses and EUR 70.6 million in operating
expenses.
While total assets increased by 2.3%, total operating expenditure was only 1.1% higher than in the previous year.
The operating profit generated in the financial year amounts to
EUR 266.5 million. Compared to 2009 this means an increase
of 14.5%. The reported operating profit amounts to EUR 386.5
million, which is equivalent to a rise of EUR 153.8 million, or
66.1%.
The prudent and prospective risk provision policy was continued in 2010.
Profit for the year before movements in reserves increased to
EUR 432.1 million, reflecting a year-on-year improvement of
262.8%. This includes dividend distributions of reinvested results and factoring in all hidden reserves, amounting to EUR
290.0 million.
Without taking into consideration the steps that have already
been taking in preparation for Basel III, the profit for the year increases before movements in the reserves by 19.3%. Following
the deduction of the movements in the reserves, which resulted
in expenditure of EUR 389.5 million, the net profit reported for
2010 amounted to EUR 42,616,932.92.
1.4. Events of particular importance
after the balance sheet date
No events of particular significance with an impact on the financial statements occurred after the close of the 2010 business year.
Balance from reversals/additions, or value adjustments to
loans and certain securities and provisions for contingent liabilities and loan risks decreased compared to the previous year
by EUR 22.9 million to EUR -105.7 million.
The balance of expenses from reversals/additions or value adjustments to securities that are valued as financial assets, as
well as for investments and shares in associated companies
amounts to EUR -23.8 million.
The profit on ordinary activities rose by 108.1% to EUR 257.0
million.
137
2
2. Report on the company’s prospective trends and risks
2.1. Prospective Trends
Raiffeisenlandesbank Oberösterreich will continue to be a calculable and predictable partner for its customers in 2011 and
continue to deliver steady balance sheet results. The principles
of special customer orientation such as sustainability, transparency, security and trust will remain essential while risk-bearing
capacity is expanded. Tight cost and income management ensures that the cost-income ratio will be further optimised and
accordingly the Bank‘s positive creative power can be increased. The data in this report is the best prerequisite for Austria’s
strongest regional bank to continue along its path of success
and to energetically support its customers, both in their local
plans and projects and in their export business.
Continue outstanding export successes
According to the forecasts we can assume that the Austria export rate in 2011 will continue to rise and exporting companies will pick up where their successes of 2007 left off. Export
successes are an essential pillar of Austria‘s solid economic
development, continued increases in exports are absolutely
necessary. Eastern Europe and Asia remain particularly important as export markets. In order to provide optimal service and
support, Raiffeisenlandesbank Oberösterreich offers its customers a powerful global network of correspondence banks and
cooperative banks.
Raiffeisenlandesbank Oberösterreich will continue to finetune its financing models for long-term performance and
sustainability.
Austria‘s strongest regional bank in the prosperous Austria-Southern German-Czech Republic economic region
will overcome the challenges of 2011; Raiffeisenlandesbank
Oberösterreich‘s ongoing upward trend of recent years provides the foundation, as does a strategy based on unique customer commitment, close customer relationships, and a business
policy oriented towards sustainability and stability.
The long-term success of Raiffeisenlandesbank Oberösterreich also depends upon active risk management. In order to
achieve this target, risk management was implemented with
structures that facilitate the identification and measurement of
all risks (market, credit, liquidity and operational risks) and their
active managerial counteraction.
2.2. Significant risks and uncertainties
Market risks
Raiffeisen’s special economic programme continues
In addition to good export conditions, Austria also needs a stable domestic economy. For this reason, Raiffeisenlandesbank
Oberösterreich started a reorganisation and revitalisation campaign back in 2009 which will be continued in 2011. As part of
this special economic programme for the domestic economy,
in particular for small and medium-sized businesses in Upper
Austria, Raiffeisen is revitalising and providing thermal retrofitting for single and multi-family residences, as well as town,
market and other buildings in the centre of the cities. So far,
this has generated an added value amounting to about EUR
853 million: not only important jobs for companies, but above
all climate protection.
Adequate liquidity reserves
Due to the large capital resources available and adequate liquidity reserves, Raiffeisenlandesbank Oberösterreich can
offer optimal support to its customers and their projects and
provide them with global support. Further increases in customer financing are also clearly in focus. For this purpose,
138
Annual Report 2010
Market risks are defined as changes in interest rates, currency
and exchange rates relating to securities, interest-rate and foreign exchange items.
These risks are measured in terms of the value-at-risk parameter. This measures a possible loss, which with 99% probability will not be exceeded during a certain holding period. The
value-at-risk is established daily for the trading books using the
Bloomberg trading system, while the KVAR+ risk management
program is employed for the bank books.
Apart from this parameter, stop-loss, present value of a basis
point and volume limits are also applied as additional risk limitations. Stop-loss, present value of a basis point and volume
limits.
These risk management methods are also used for hedge
positions.
The total limit for these risks is decided on by the Managing
Board after taking the risk-bearing capabilities of the bank into
Shifts in the interest, currency and share price landscape can
have a major influence on results and the risk situation. Therefore, possible shifts in risk parameters are simulated and the
consequences reported to the Managing Board.
In addition, stress tests are conducted to take account of risks
in the event of extreme market movements. The crisis scenarios include the simulation of large fluctuations in the risk factors and are designed to highlight potential losses which are
not covered by the value-at-risk model. The stress scenarios
comprise both the extreme market fluctuations which have actually occurred in the past and also a series of standardised
shock scenarios involving interest rates, share prices, currency
exchange rates and volatility.
Credit risk
The principles of the customers’ credit ratings are incorporated in the „Credit Risk Management“ manual. This set of regulations is a compact representation of the standards valid
for Raiffeisenlandesbank Oberösterreich. These are oriented on international standards (Basel II) and on supervisory
recommendations.
An organisational separation between front and back offices
has been implemented.
Moreover, in order to measure the credit risk, following an internal bank rating, financing is divided into creditworthiness and
security classes. The risk class of a borrower therefore assumes two dimensions, recording and assessing their financial
situation and their provision of collateral.
Both hard and soft facts are employed as creditworthiness criteria. In corporate customer business, soft facts are ascertained systematically during discussions with the company and
then assessed.
A scoring system is employed for the automatic classification
of small volume business with employed private customers.
Liquidity risk
Liquidity risk means not being able to fulfil one‘s payment obligations by the due date or, in the case of a liquidity shortage,
of not being able to acquire enough liquidity at terms that are
in line with the market.
Maturity-matching refinancing has a high priority in Raiffeisenlandesbank Oberösterreich. This is reflected in the liquidity gap
analysis,
which is used to calculate monthly scenarios defining the closure expense required for open liquidity items.
The sufficient supply of short- and medium-term liquidity for
the event of bottleneck situations is presented in the liquidity
protection plan.
Not only do Raiffeisenlandesbank Oberösterreich and the
Upper Austrian Raiffeisen banks that it coordinates utilise our
Treasury, banks from other provinces, as well as partner and
correspondent banks, have increasingly taken advantage of it.
Operational risks
Raiffeisenlandesbank Oberösterreich defines operational risk
as being the risk derived from losses caused by the inappropriateness or failure of internal processes, people and systems,
or external occurrences.
Raiffeisenlandesbank Oberösterreich uses both organisational
and computer technology methods in order to best limit this
type of risk. A high degree of security is attained by means of
limit systems, competence regulations, a risk-adequate internal
control system, a comprehensive security manual as a behaviour code and directive, as well as scheduled and unscheduled
audits by Internal Auditing.
The operative management of this type of risk involves risk discussions and analyses with managers (early warning system).
And the systematic registration of errors in a database for analysis (ex-post analysis).
Risk-bearing capacity analysis
These systems for assessing creditworthiness are validated
and improved on an on-going basis.
Investment management
Investment portfolio risk is constantly monitored and evaluated
using a modern investment controlling and investment monitoring system. Changes in the value of the investments are evaluated annually by an external consultant.
A risk-bearing capacity analysis compares the Group risk with
the available risk coverage (operating profit, hidden reserves,
equity), in order to be certain that even in the very unlikely case
of an extreme situation, sufficient capital for risk coverage
would be available.
The risk-bearing capacity is calculated by comparing the
Group risk with the available coverage.
139
consideration. Controlling continuously checks that these limits are complied with.
3. Research and development
Raiffeisenlandesbank Oberösterreich has made it a goal to help
stabilise the money and capital markets. We have developed
modern simulation and calculation programs for the company’s
treasury in cooperation with the Johannes Kepler University
and the Fuzzy Logic Labor at the Hagenberg software park.
With the awareness that public budgets are not sufficient to for
many infrastructure projects (streets, rails, modern hospitals
etc.), we are setting up private-public-partnership models in all
kinds of variations.
It is to the company’s benefit and in line with our sustainable
development strategy not to invest in financial instruments that
are hard to understand but rather to use all kinds of equity to finance innovative enterprises that are recruited from education,
research and application through the International Incubator
Hagenberg. The International Incubator Hagenberg offers “full
service package” and support for national and international
founding teams to grow a business idea in the information
technology area (development, applications) to marketable
maturity. Raiffeisenlandesbank Oberösterreich invests equity
at the International Incubator Hagenberg in accompanying the
start up companies with the goal of generating regional value
added for Upper Austria and creating long-term jobs in the
high-tech area.
Part of the bank’s corporate identity is that we prefer to export
heads full of good ideas from a high income country. And that
we, thanks to the open borders and the globalising markets
they bring, accompany students from the Johannes Kepler
University and the Hagenberg software park to Raiffeisenlandesbank Oberösterreich and our customers, in order to ensure there is a comfortable reciprocity between young people
in countries such as the Czech Republic, Russia and Turkey.
4.Report on the most important aspects of the internal control and risk management
system with regard to the accounting process
The internal control system for the accounting process
Through an effective internal control system, the Managing
Board of Raiffeisenlandesbank Oberösterreich ensures that
transactions are properly reflected in the accounting.
The internal control system for the accounting process is
designed to ensure reasonable reliability in the preparation and truthful presentation of published annual financial
statements and financial information in conformity with the
legal provisions of the Austrian Banking Act and the Austrian Business Code. In this connection, the Supervisory
Board and Managing Board rely on experts, in particular
the organisational units Finance and Accounting and Controlling. The Supervisory Board is responsible for monitoring the effectiveness of the internal control system.
The Managing Board of Raiffeisenlandesbank Oberösterreich makes sure that there a verifiably effective and appropriate internal control system for the financial reporting
process. The responsibilities for individual components
and process steps associated with financial reporting are
140
Annual Report 2010
clearly defined and assigned to specific organisational
units. The internal control system is being implemented and
the accounting process is documented in administrative
procedures.
The defined controls such as dual control, review of data
quality and plausibility checks make the internal control
system an integrated component of technical and organisational processes. The internal control system combines
risk and compliance and ensures that adequate controls
are implemented and properly executed based on defined
risks. The separation of sensitive activities is supported by
restricted distribution of IT permissions.
The cornerstone of the internal control system is the regular
exchange of information and data relevant to the financial
reporting process within each organisational unit.
Internal auditing independently and regularly checks for
compliance with internal regulations, including in the accounting department. The head of internal auditing reports
directly to the Managing Board.
Linz, 7 March 2011
THE MANAGING BOARD
Hans Schilcher
Georg Starzer
Markus Vockenhuber
Ludwig Scharinger Chief Executive and
141
Aktiengesellschaft, 4020 Linz, Europaplatz 1a
Balance Sheet
Income Statement
Notes
(section subject to statutory disclosure)
Audit Certificates
Financial
Statement
142
Annual Report 2010
Balance Sheet as at 31 December 2010
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Cash in hand and balances at central
banks
Public sector debt issues and bills of
exchange eligible for refinancing at the
Austrian Central Bank:
a) Public sector debt issues and
similar securities
b) Bills of exchange eligible-
for refinancing at central banks
Loans and advances to banks:
a) Payable on demand
b) Other loans and advances
Debt securities and other fixed-interest
securities:
a) From public sector issuers
b) From other issuers
Including: own bonds
Shares and other
variable-yield securities
Investments
including:
Banks
Investments in affiliated companies
Including:
Banks
Intangible fixed assets
Including:
Land and buildings used
by the bank in the
course of its operations
Own shares or interests and shares in
companies with a controlling or majority
holding
Including:
Nominal values
Other assets
Subscribed capital (payment has been
asked for but not yet paid)
Total assets
1.
Foreign assets
31 Dec, 2010
in EUR
31 Dec, 2009
in EUR
in EUR ‘000
in EUR ‘000
46,926,740.51
616,279,288.95
0.00
2,266,859,644.02
5,294,669,990.81
55,510.88
2,383,616,043.14
31,327
588,611
616,279,288.95
7,561,529,634.83
15,560,602,532.72
2,383,671,554.02
164,141,611.28
0
3,064,730
4,572,061
3,461
2,858,531
588,611
7,636,791
14,771,596
2,861,992
98,360
1,917,773,784.44
167,851,607.08
10,808,503.45
1,751,839
167,403
10,817
1,416,813,876.85
49,764,255.26
ASSETS
1,335,155
50,949
0.00
20,651,243.30
14,539,919.10
0
21,451
15,121
0.00
0.00
0
0
310,109,174.24
150,815
0.00
39,633,506.65
0
43,197
30,041,842,943.59
29,360,177
8,052,627,937.79
8,328,200
143
31 Dec. 2010
1.
in EUR
4.
Amounts owed
to banks:
a) Payable on demand
b) with fixed term or withdrawal date
Amounts owed to customers:
a) Savings deposits
Including:
aa) Payable on demand
ab) With fixed term or withdrawal date
b) Other liabilities
Including:
ba) Payable on demand
bb) with fixed term or withdrawal date
a) Bonds issued
b) Other liabilities evidenced by certificates
Other liabilities
5.
Accruals and deferred income
6.
6.A
Provisions:
a) Provisions for severance payments
b) Provisions for pensions
c) Provisions for taxes
d) Other provisions
Funds for general bank risks
7.
8.
Supplementary capital
9.
Subscribed capital
10.
Capital reserves:
a)Committed
b)Uncommitted
Retained earnings:
a Statutory reserves
b) Reserves in accordance with the articles of association
c) Other reserves
including:
Reserves pursuant to §225 para 5 of the Austrian Business Code
Liabilities pursuant to § 23 (6) of the AusNet income for the year
2.
3.
11.
12.
13.
144
Annual Report 2010
31 Dec. 2009
in EUR
in EUR ‘000
4,132,948,128.72
8,708,530,478.46
in EUR ‘000
4,556,747
12,841,478,607.18
8,685,667
930,423,907.31
927,516
62,747,315.97
63,746
867,676,591.34
5,611,755,130.35
6,542,179,037.66
863,770
5,152,811
2,167,065,893.73
2,441,055
3,444,689,236.62
2,711,756
2,502,841,311.51
3,316,786,786.68
5,819,628,098.19
293,529,517.67
2,909,768
3,025,623
22,618,865.93
18,909,655.28
17,155,216.59
14,438,547.29
110,857,542.93
547,845,996.45
149,991,600.00
0.00
0.00
733,227,797.22
161,360,962.09
13,242,414
6,080,327
5,935,391
266,263
24,684
17,899
17,745
15,756
127,415
178,815
0.00
0
277,638,948.46
1,734,257,198.23
71,862
1,617,488
554,015,154.25
554,015
697,837,596.45
547,846
149,992
697,838
733,227,797.22
0
0
340,535
340,535
0.00
0
311,543,323.53
42,616,932.92
303,524
37,091
31 Dec. 2009
in EUR
in EUR
in EUR ‘000
9,910,903.81
0.00
9,910,903.81
in EUR ‘000
14.
1.
2.
3.
4.
5.
6.
7.
8.
Including:
a) Acceptances and
endorsed
bills sold
b) Liabilities from indemnity
agreements and guarantees
Credit risksIncluding:
Liabilities from
repurchase
operations
Liabilities from
trust fund transactions
Equity eligible for inclusion pursuant to
§23 (14) of the Austrian Banking Act
Including:
Equity pursuant to §23(14) subpara. 7 of the
Austrian Banking Act
Mandatory equity pursuant to § 22 (1) of
the Austrian Banking Act
Including:
Mandatory equity pursuant to §22(1) subpara.
1 and 4 of the Austrian Banking Act
Foreign liabilities
Hybrid capital pursuant to § 24 (2) (5 and 6)
of the Austrian Banking Act
Under-accrual in provisions for
pension obligations
9,930
0
0.00
0
0.00
0
9,930
30,041,842,943.59
29,360,177
3,424,004,373.55
2,375,673
0.00
0
3,423,925,032.85
2,375,593
5,289,291,589.63
0.00
5,192,175
33,790
13,647,738.20
3,736,586,360.94
2,086,582.63
Untaxed reserves:
a) Valuation reserve due to
special depreciation
b) Other untaxed reserves
Including:
ba) Investment allowance
pursuant to §10 of the 1988 Austrian Income Tax Act
bb) Carry-over reserves pursuant to §12 of the 1988 Austrian Income Tax Act
Total equity and liabilities
31 Dec. 2010
12,874
3,123,931
927
1,730,397,426.55
1,728,310,843.92
1,626,619
1,625,692
6,019,398,565.82
5,477,045
0.00
0
56,673.64
124
145
Income Statement 2010
2010
in EUR
1.
2.
I.
3.
4.
5.
6.
Including:
From fixed interest securities
NET INTEREST INCOME
Income from securities and investments:
a) Income from shares, other equity interest and variable-interest securities
b) Income from investments
c) Income from shares in affiliated companies
Fee and commission income
2009
in EUR
in EUR ‘000
773,519,581.65
103,647,853.54
861,869
135,787
- 573,555,812.63
- 674,851
199,963,769.02
187,018
74,238,108.19
6,188,247.27
172,735,370.89
in EUR ‘000
70,181
5,524
253,161,726.35
100,503,339.93
40,354
116,059
97,338
Fee and commission expenses
Income from/expenses in financial operations
- 30,982,989.50
- 33,014
13,595,805.75
29,768,107.23
16,208
26,645
566,009,758.78
410,254
10.
OPERATING INCOME
General administrative expenses:
a) Personnel expenses
Including:
aa) Wages and salaries
ab) Expenses for statutory social security contributions,
payroll taxes and mandatory contributions
ac) Other social expenses
ad) Expenses for pension schemes and
support payments
ae) Allocations to the provisions for pensions
af) Expenses for severance
payments and
employee pension funds
b) Other administrative expenses
(operating expenses)
Value adjustments for
property items in
asset items 9 and 10
Other operating expenses
III.
OPERATING EXPENSES
IV.
OPERATING RESULT
7.
II.
8.
9.
146
Annual Report 2010
- 85,513,074.54
- 82,668
- 64,018,490.88
- 61,796
- 14,024,786.85
- 1,087,674.61
- 13,362
- 997
- 4,945,579.84
590,157.41
- 4,640
102
- 2,026,699.77
- 1,975
- 70,584,939.40
- 156,098,013.94
- 70,529
- 153,197
- 1,732,783.56
- 21,671,340.44
- 1,685
- 22,638
- 179,502,137.94
- 177,520
386,507,620.84
232,734
2010
in EUR
2009
in EUR
in EUR ‘000
IV.
15.
16.
17.
18.
19.
VI.
20.
ACTIVITIES
Extraordinary income Including: Withdrawals from the fund for general bank risks
Extraordinary expenses Including: Allocations to the fund for general bank risks
Extraordinary result
(subtotal of items 15 and 16)
232,734
- 105,680,714.96
- 128,598
- 23,808,960.28
257,017,945.60
19,394
123,530
178,840,610.96
0
0.00
0
0.00
0.00
Other taxes, unless reported
under item 18
PROFIT FOR THE YEAR
Movements in reserves
Including: Allocation to the statutory reserve
Reversal from the statutory reserve
386,507,620.84
0
0
178,840,610.96
0
- 2,836,403.44
- 3,696
- 904,196.05
- 761
432,117,957.07
- 389,501,024.15
119,073
- 81,982
- 8,019,649.37
0.00
OPERATING RESULT
(carry-over)
11./12. Balance from reversals/
additions, or value adjustments
to loans and certain securities
and provisions for contingent
liabilities and loan risks
13./14. Balance from reversals/
additions, or value adjustments
to securities valued as financial assets, as well as investments and shares in associates
V.
PROFIT ON ORDINARY BUSINESS
in EUR ‘000
0
0
VII.
21.
NET PROFIT FOR THE AEYR
Profit/loss carried forward
42,616,932.92
0.00
37,091
0
VIII.
NET INCOME FOR THE YEAR
42,616,932.92
37,091
147
Notes to the 2010 Financial Statements
1.
Information Concerning the Reporting and Valuation Methods used in the Balance Sheet and the Income Statement
The 2010 Financial Statements were prepared in accordance
with the provisions of the Austrian Banking Act (BWG) and the
Austrian Business Code (UGB).
Low-volume trading stock securities admissible to the stock
markets were valued on a „mark to market“ basis.
1.3. Risk provisions
The annual financial statements were drawn up in line with the
principles of orderly accounting, as well as the generally accepted standard practice providing a true and fair view of the
assets, financial position and profitability of the company.
The principle of completeness was observed in preparing the
annual financial statements.
The principle of individual valuation was observed during the
valuation of the various assets and liabilities and the continued
operation of the company was assumed.
The principle of prudence was observed, as only those profits
realised as at the balance sheet date were reported. All recognisable risks and impending losses were taken into account.
1.1.
Itemised value adjustments and provisions were made for recognisable risks in the case of borrowers. As in previous years,
a dynamic, forward-looking approach was adopted for the valuation of loan business. For some loans, standardised, defined value adjustments were employed, or provisions were
formed in the shape of dynamic risk provisions, on the basis of
risk groups in accordance with the „risk management“ rating
model.
An appropriate provision was formed for possible loan defaults
relating to financing in risk countries, on the basis of international, estimated values.
On the whole, this is a continuation of the cautious valuation
policy.
Currency conversion
Sums in foreign currency were translated at the European Central Bank‘s foreign currency mean exchange rate pursuant to §
58 Para 1 of the Austrian Banking Act.
1.4. Special valuation pursuant to § 57 Paras 1 and 2 of
the Austrian Banking Act
The scope for valuation as per § 57 paras 1 and 2 of the Austrian Banking Act was not employed.
1.2. Securities
1.5.Investments
Both securities held as fixed and current assets were valued
in accordance with the strict lower of cost or market method.
In accordance with § 56 para 2 of the Austrian Banking Act,
bonds purchased above par and other fixed-interest securities
held as fixed assets, were written down pro rata temporis to
the amount repayable.
Securities used as cover funds for trust money were regarded
as fixed assets and valued according to the strict lower of cost
or market method pursuant to § 2 Para 3 of the Austrian Trustees Securities Directive.
In the valuation of securities, stock market prices or trader quotes observed on the market are included. If adequate market
quotes are not available, prices are determined with internal
evaluation models on the basis of surcharges / discounts for
creditworthiness, marketability and features of the issue.
148
Annual Report 2010
Investments and shares in associated companies were valued
at historical cost. Extraordinary depreciation was made in the
case of value impairments which were likely to be of a permanent nature, due to sustained losses, a reduction in equity and/
or a reduced earnings capacity level.
1.6. Property, plant and equipment
Pursuant to § 55 Para 1 of the Austrian Banking Act in combination with § 204 of the Austrian Business Code, the valuation
of tangible assets took place at the historical price or the cost
of production less scheduled depreciation.
Low-value items were written-off completely in the year of
purchase.
The useful economic life employed as a basis for scheduled
depreciation amounted to 20-50 years for immovable fixed assets and 3-20 years for movables.
1.7.
Provisions for pensions
Pension commitments were calculated according to the partial
value method for future retirement benefit entitlements, using
the AVÖ 2008 R Pagler & Pagler mortality tables and an interest
rate of 3.5% (previous year: 3.5%).
The transitional provisions pursuant to Article X of the Austrian
Business Code have been applied since 1992 and extend over
a period of 20 years.
1.8. Provisions for severance payments
and similar obligations
The provisions for severance payments on the balance sheet
date were calculated according to actuarial mathematical principles using an interest rate of 3.5% (previous year: 3.5%) and
subject to the assumption that an average working life can be
expected.
1.10. Own issues
Accruals and deferrals relating to issue costs, additional cash
payment commission, premiums and discounts were reversed
over the term of debt in proportion to the capital guaranteed.
1.11. Derivitive financial instruments
Derivative financial instruments are valued at their fair value.
When valuation units are formed the market value arising from
derivatives is not posted.
The fair value to be provided is the amount at which an asset
was exchanged or a debt was paid between competent, contractually willing and mutually independent business partners.
Where stock exchange prices were available, these were employed for evaluation. Internal evaluation models with current
market parameters and in particular the cash value method and
option price models were used for financial instruments lacking
a stock exchange price.
Extraordinary depreciation was applied in cases of assumed
lasting value impairment.
The provisions for long-service bonuses were calculated according to actuarial mathematical principles using an interest
rate of 3.5% (previous year: 3.5%) and subject to the assumption that an average working life can be expected.
A deduction for fluctuations is made for both severance payment provisions and long-service bonus provisions.
The calculations are based on a calculative pensionable age
of 60 for women and 65 for men with adherence to the legal
transitional regulations in accordance with the Budget Supplement Law of 2003.
1.9. Other provisions
In line with the prudence principle, other provisions include all
risks recognisable at the time the balance sheet was prepared, as well as those liabilities which were basically certain, but
where uncertainty existed as to their amount.
149
2. Notes to the Balance Sheet
2.1. Periods to maturity
Loans and advances and amounts owed to banks and non-banks that are not payable on demand have the following periods to
maturity:
Remaining period to maturity
Up to 3 months
3 months to 1 year
1 year to 5 years
More than 5 years
Total
Book value
31 Dec. 2010
Carrying amount
31 Dec. 2009
Carrying amount
31 Dec. 2010
Carrying amount
31 Dec. 2009
in EUR '000
in EUR ‘000
in EUR ‘000
in EUR ‘000
2,807,429
770,967
764,944
951,330
3,345,283
566,795
471,927
188,056
2,310,310
2,486,666
4,688,631
4,200,725
2,116,531
2,745,565
4,071,933
4,055,007
5,294,670
4,572,061
13,686,332
12,989,036
Up to 3 months
3 months to 1 year
1 year to 5 years
More than 5 years
Total
Amounts owed to non-banks
Book value
31 Dec. 2010
Carrying amount
31 Dec. 2009
Carrying amount
31 Dec. 2010
Carrying amount
31 Dec. 2009
in EUR '000
in EUR ‘000
in EUR ‘000
in EUR ‘000
2,268,293
974,890
2,746,453
2,718,894
1,938,338
1,808,581
2,349,885
2,588,863
1,709,505
1,703,266
4,179,541
2,427,039
1,317,234
989,525
4,458,482
2,629,294
8,708,530
8,685,667
10,019,351
9,394,535
In 2011, bonds and other fixed-interest securities held by Raiffeisenlandesbank Oberösterreich to the amount of EUR 645,672
thousand (2010: 366,613 thousand) will mature, along with bond issues of EUR 499,853 thousand (2010: EUR 172,000 thousand).
150
Annual Report 2010
The securities admitted to trading shown in asset items 5 and
6 consist of listed bonds and other fixed interest securities
amounting to EUR 2,349,809 thousand (previous year: EUR
2,829,378 thousand) and listed shares and other variable interest securities totalling EUR 61,890 thousand (previous year:
EUR 96,528 thousand).
There are no non-listed bonds and other fixed interest securities, non-listed shares and other non-fixed interest securities,
or investments and shares in associated companies admitted
to trading.
The securities admitted to trading shown in asset Items 5 and 6
are divided into bonds and other fixed interest securities recognised as fixed assets totalling EUR 2,135,118 thousand (previous year: EUR 2,700,345 thousand) and bonds and other fixed
interest securities recognised as current assets of EUR 214,691
thousand (previous year: EUR 129,033 thousand).
The shares and other non-fixed interest securities recognised
as fixed assets amounted to EUR 37,696 (previous year: EUR
73,356 thousand) and those recognised as current assets to
EUR 24,194 thousand (previous year: EUR 23,172 thousand).
Asset items are allocated to the fixed assets because the securities listed above serve the long-term investment of liquid
funds, in order to obtain higher returns.
Securities held as current assets were acquired for the purpose
of securities trading, in order to attain price gains and for the
retention of a cash reserve.
Raiffeisenlandesbank Oberösterreich maintains a securities
trading account book, pursuant to §22n of the Austrian Banking Act. The volume of the listed securities amounted to EUR
79,437 thousand (previous year: EUR 49,410 thousand) and
that of the other financial instruments to EUR 49,803 thousand
2.2. Securities
151
2.3. Fixed assets
Raiffeisenbank Oberösterreich’s fixed and financial assets developed as follows:
Balance sheet item
Public sector debt issues
and similar securities
Other loans
to banks
customers
Debt securities and
other fixed-interest
securities of public
Interest
Debt securities
and other fixed-interest
securities from other
issuers
Shares and other variable
interest securities
Investments
Including:
Banks
Shares in affiliated
companies
Including:
Banks
Tangible assets
Including:
Land and buildings
used by the bank
in the course of its
operations
Total
As at
1 January of Additions in Disposals in
the financial the financial the financial
year
year
year
Depreciation
Total
Book values
As at
As at
31 December 31 Dec of
of this finan- the previous in the financial year
cial year
year
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
579,213
107,136
65,034
41,740
579,575
567,906
32,314
215,970
0
200,000
579
15,391
215,390
0
340,855
24,966
45,555
14,611
305,655
322,582
724
0
38,377
38,377
0
0
0
0
2,831,538
459,745
1,054,252
101,913
2,135,118
2,700,344
15,871
1,744,086
352,851
208,817
160,555
1,727,565
1,581,863
4,664
169,588
550
74
2,2121)
167,852
167,403
93
(10,817)
1,335,155
(0)
191.604 2)
(8)
109.445 3)
(0)
500
(10,809)
1,416,814
(10,817)
1,335,155
(0)
500
(50,949)
74,763
(0)
933
(1,185)
529
(0)
54,516
(49,764)
20,651
(50,949)
21,451
(0)
1,733
(55,801)
(78)
(0)
(41,339)
(14,540)
(15,121)
(660)
7,291,168
1,176,162
1,722,083
376,626
6,368,621
6,912,094
55,899
Loss allocation of atypical silent partners for start-up losses of EUR 2,164 thousand
Due to reorganisations EUR 160,843 thousand
3)
Due to reorganisations EUR 108,260 thousand
1)
2)
152
Annual Report 2010
Depreciation
thousand under the item income from securities and invest2.4. Equity and equity-related liabilities
ments and by using EUR 170,000 thousand in hidden reserves
under the item extraordinary income.
In the case of subordinated liabilities, the subordination is always agreed separately in writing pursuant to § 51 para 9 of the
2.5. Provisions and other liabilities
Austrian Banking Act. The term and repayment are established
in a manner that permits allocation to equity in accordance with
Due to the use of the transitional provision contained in Article
§ 23 Para 8 subpara 1 of the Austrian Banking Act.
X para 3 of the Austrian Accounting Act, as at 31 December
2010 there was an under-accrual in the provisions for pensions
In accordance with its articles, Raiffeisenlandesbank
of EUR 57 thousand (previous year: EUR 124 thousand).
Oberösterreich‘s share capital as at 31 December 2010 was
EUR 253,000 thousand (previous year: EUR 253,000 thousand).
2.6. Supplementary information
It consists of 714,578 (previous year: 714,578) ordinary shares
and 749,294 (previous year: 749,294) preferred shares.
The balance sheet contains foreign currency items recognised
as assets amounting to EUR 2,818,308 thousand (previous year:
Participation capital amounting to EUR 301,015 thousand (preEUR 2,627,785 thousand) and EUR 2,530,945 thousand (previvious year: EUR 301,015 thousand) has been issued.
ous year: EUR 2,161,687 thousand) recognised as liabilities.
Core capital was stocked up by EUR 290,000 thousand with
distributions of reinvested results amounting to EUR 120,000
153
Nominal amount
Market value 1)
up to 1 year
1 to 5 years
over 5 years
Total
positive
negative
in EUR '000
in EUR ‘000
in EUR ’000
in EUR '000
in EUR ’000
in EUR ’000
OTC products
Interest rate swaps
310,356
3,638,583
315,198
465,710
2,591,138
13,328,770
745,366
1,478,301
66,003
17,595,297
1,145,777
1,719,168
2,967,497
34,562,650
2,206,341
3,663,179
9,695
1,248,162
37,626
2,191
7,655
1,118,960
1,410
42,383
Total
49,803
4,779,650
0
18,143,575
0
20,526,245
49,803
43,449,470
0
1,297,674
0
1,170,408
400,251
42,939
1,174
444,364
6,510
10,947
4,047,108
228,668
81,622
4,357,398
115,199
110,878
282,490
283,098
5,012,947
46,539
46,547
364,693
2,991
2,991
88,778
332,020
332,636
5,466,418
20,189
0
141,898
0
19,757
141,582
1,100
63,700
63,700
0
0
128,500
9,871,294
49.803
90,770
74,611
86,548
0
0
251,929
18,760,197
0
11,100
10,000
15,297
5,000
5,000
46,397
20,661,420
0
102,970
148,311
165,545
5,000
5,000
426,826
49,292,911
49.803
383
22,786
1,629
253
0
25,051
1,464,623
0
1,514
1,651
23,445
0
253
26,863
1,338,853
0
9.921.097
18.760.197
20.661.420
49.342.714
1.464.623
1.338.853
Foreign-currency
dependent futures
OTC products
Foreign exchange spots and
forward exchange futures
with multiple currencies
Total
Other futures
OTC products
Credit derivatives
Share options - purchases
Total
Total OTC products
Summe börsengehandelte Produkte
Gesamt
1)
154
including deferred interest
Annual Report 2010
Nominal amount
Market value 1)
up to 1 year
1 to 5 years
over 5 years
Total
positive
negative
in EUR '000
in EUR ‘000
in EUR ’000
in EUR '000
in EUR ’000
in EUR ’000
Interest rate swaps
5,000
3,565,968
32,554
65,901
4,879,261
13,223,161
630,594
1,860,085
74,000
14,736,325
940,521
1,355,927
4,958,261
31,525,454
1,603,669
3,281,913
17,180
1,008,416
23,636
3,107
15,154
930,842
1,897
34,906
Total
23,909
3,693,332
0
20,593,101
0
17,106,773
23,909
41,393,206
0
1,052,339
0
982,799
540,844
8,544
2,224
551,612
5,812
6,361
3,232,722
258,833
102,611
3,594,166
57,964
62,151
210,902
211,372
4,195,840
54,294
53,011
374,682
3,000
3,000
110,835
268,196
267,383
4,681,357
28,157
0
91,933
0
29,500
98,012
2,156
26,400
24,186
0
0
52,742
7,918,005
23,909
74,024
132,234
132,172
0
0
338,430
21,306,213
0
10,000
38,381
65,000
5,000
5,000
123,381
17,340,989
0
86,180
197,015
221,358
5,000
5,000
514,553
46,565,207
23,909
878
26,148
8,436
0
125
35,587
1,179,859
0
1,293
1,379
19,293
127
0
22,092
1,102,903
0
7.941.914
21.306.213
17.340.989
46.589.116
1.179.859
1.102.903
Foreign-currency
dependent futures
OTC products
Foreign exchange spots and
forward exchange futures
with multiple currencies
Total
Other futures
OTC products
OTC products
Credit derivatives
Share options - purchases
Total
Total OTC products
Total products traded on the stock exchange
Gesamt
1)
including deferred interest
155
The derivative financial instruments are recorded in the balance sheet with the following carrying amounts:
2010
Book values of bank book
derivatives
a) Interest-rate related agreements
Loans and
advances to
banks
Amounts
owed to
banks
Other assets
Other
liabilities
Accruals
Deferred
income
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
0
0
0
0
0
0
321,989
0
0
214,723
0
0
22,590
11,411
0
39,306
11,455
7,121
18,013
0
0
19,978
0
0
derivatives
b) Exchange-rate related agreements
c) Securities-related transactions
156
Annual Report 2010
The derivitive financial instruments are recorded in the balance sheet with the following carrying amounts:
2009
derivatives
Loans and
advances to
banks
Amounts
owed to
banks
Other assets
Other
liabilities
Accruals
Deferred
income
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
in EUR ‘000
0
260
0
8
0
0
305,400
0
0
195,786
0
0
16,329
0
597
24,802
6,783
12,894
21,881
0
0
23,187
0
0
derivatives
b) Exchange-rate related agreements
c) Securities-related transactions
As at 31 December 2010, securities to the amount of EUR 5,722
thousand (previous year: EUR 3,533 thousand) were held as
cover for trust fund deposits of EUR 7,105 thousand (previous
year EUR 4,286 thousand).
Securities amounting to EUR 24,373 thousand (previous year:
EUR 24,667 thousand) and loans and advances to customers
in the amount of EUR 601,808 thousand (previous year: EUR
339,194 thousand) were pledged as collateral for certain issues of securities. Additionally, securities amounting to EUR
1,636,452 thousand (previous year: EUR 2,586,787 thousand)
were deposited as collateral at banks and stock exchanges.
were deposited at banks in collateral arrangements and
are pledged. Money claims to the amount of EUR 986,645
thousand (previous year: EUR 907,102 thousand) were ceded to
the Oesterreichische Kontrollbank. Outstanding debts of EUR
60,085 thousand (previous year: EUR 166,154 thousand) were
ceded to the European Investment Bank. Netting arrangements
were agreed on with correspondent banks.
In addition, as at 31 December 2010, fixed-interest securities
with a nominal value of EUR 32,000 thousand (previous year
EUR 37,000 thousand) were held in a blocked account at the
Landeszentralbank in the Free State of Bavaria as a security
deposit for advances on securities.
157
3. Notes to the Income Statement
3.1. Expenses for subordinated liabilities
3.3. Other operating expenses
Expenses for subordinated liabilities in the 2010 financial year
totalled EUR 61,106 thousand (previous year: EUR 49,436
thousand).
The other operating income shown in Item 10 of the profit and
loss account amounting to EUR 18,369 thousand (previous
year: EUR 18,752 thousand) relates to non-bank personnel
expenses.
3.2. Other operating income
3.4. Tax savings
The other operating income shown in Item 7 of the income
statement amounting to EUR 18,633 thousand (previous
year: EUR 18,652 thousand) relates to non-bank subsidiary
offsetting.
As in the previous year, the change in untaxed reserves does
not result in any significant changes in taxes on income and
earnings.
4. Other information
4.1
Workforce information
An average of 849 employees worked in banking operations
during the 2010 financial year (previous year: 863).
4.2. Advances and loans to members
of the Managing Board and the Supervisory Board
Advances and loans to members of the Raiffeisenlandesbank
Oberösterreich Managing Board and the Supervisory Board
consisted of EUR 231 thousand (previous year: EUR 408
thousand) to members of the Managing Board, and EUR 1,247
thousand (previous year: EUR 917 thousand) to members of the
Supervisory Board.
Loans to members of the Managing Board and the Supervisory
Board are granted at standard bank conditions. Repayments
are made as agreed.
employees (previous year: EUR 2,962 thousand). Further expenditure of EUR 1,766 thousand (previous year: EUR 1,528
thousand) was used for Managing Board pensions and EUR
1,792 thousand (previous year: EUR 1,743 thousand) for other
employees.
4.4. Expenses for remunerations and reimbursements
to the members of the Managing Board and the
Supervisory Board
In 2010, the remunerations and reimbursements paid to members of the Managing Board (including payments in kind and
expenses in connection with pensions) totalled EUR 4,431
thousand (previous year: EUR 4,302 thousand).
Expenses for former executive managers (severance and pension payments) amounted to EUR 292 thousand in 2010 (in
2009 use was made of $241 para 4 of the Austrian Business
Code).
4.3. Expenses for severance payments and pensions
The personnel expenses contain expenses for severance payments amounting to EUR 1,739 thousand (previous year: EUR
1,732 thousand) and contributions to employee pension funds
of EUR 288 thousand (previous year: EUR 243 thousand).
Expenses for severance payments (including provisions) and
pensions (including provisions) in 2010 amounted to EUR 189
thosuand (previous year: EUR 280 thousand) for members
of the Managing Board and to EUR 2,636 thousand for other
158
Annual Report 2010
In 2010, reimbursements (including reimbursements for travel expenses) of EUR 517 thousand (previous year: EUR 466
thousand) were paid to members of the Supervisory Board.
4.5. Members of the Managing Board and Supervisory
Board
Information on the members of the Raiffeisenlandesbank Oberösterreich Managing Board and Supervisory Board can be
found on pages 10 to 15.
Linz, 7 March 2011
THE MANAGING BOARD
Hans Schilcher
Georg Starzer
Markus Vockenhuber
Ludwig Scharinger
159
Audit Certificate
Report on the Annual Financial Statements
I examined the attached annual financial statements of
Linz,
taking the accounting into consideration. These financial statements include the balance sheet as at 31 December 2010, the
income statement for the financial year ending on 31 December
2010, and the Notes.
for the financial statements and the
accounts
the content and compilation of the annual financial statements,
presenting a true and fair view of the assets, financial position and earnings of the company in accordance with Austrian
business and banking laws. This responsibility includes: the
design, implementation and maintenance of an internal control
system, to the extent that this is necessary for the preparation
of the financial statements and to present as true a picture as
possible of the group‘s net assets, financial position and profit
situation so that these financial statements are free from material misrepresentations, whether due to intentional or unintentional mistakes. It also includes choosing and applying suitable
accounting and valuation methods and making estimates that
appear appropriate under the existing circumstances.
Responsibility of the auditor and a description of the type and scope
of the statutory audit
My responsibility lies in the submission of an audit opinion on
these financial statements on the basis of my inspection. My
audit was conducted in accordance with the applicable Austrian legal regulations and fundamental auditing principles.
These standards require that I plan and perform the audit in
160
Annual Report 2010
such a manner that I can form a reasonable opinion as to whether the financial statements are free of material misstatement.
given in the annual financial statements. The choice of auditing
actions is left to the obligatory discretion of the auditor of the
annual financial statements, taking into account his assessment of the risk of material misstatements occurring, whether
due to intended or unintended errors. In assessing this risk, the
auditor of the annual financial statements takes into account
the internal control system, insofar as it is important for compiling the annual financial statements and presenting a true and
fair view of the assets, financial position and earnings of the
company, in order to determine suitable auditing actions taking
account of the framework conditions, not however to submit an
auditing opinion about the effectiveness of the company’s internal control system. The audit also included my evaluation of
the adequacy of the applied accounting and valuation methods
and the essential estimates made by the legal representatives
of the company as well as an assessment of the overall tenor
of the financial statements.
I believe that I have obtained sufficient and suitable auditing
proof, so that my audit provides a reasonable basis for my
opinion.
Auditing opinion
The results of my audit gave no reason for objection. On the
basis of the knowledge gained during the audit, in our judgment the financial statements comply with the legal regulations
and present a true and fair view of the company‘s assets and
financial position as of 31 December 2010 and the company‘s
Statement concerning the Management
Report
According to the Austrian legal regulations, the management
report is to be audited as to whether it is consistent with the
financial statements and whether or not other details given in
the management report give a misleading impression of the
company’s financial position. The auditor‘s opinion must also
include a statement as to whether the management report is
consistent with the financial statements and whether or not
the details according to § 243a of the Austrian Business Code
apply.
In my opinion, the management report is consistent with the
financial statements. The details according to § 243a of the
Austrian Business Code apply.
earnings and cash flow in the financial year from 1 January
2010 to 31 December 2010, in accordance with the Austrian
principles of orderly accounting.
Vienna, 7 March 2011
As auditor for Österreichischer Raiffeisenverband:
Christian Loicht
161
Audit Certificate
Report on the Annual Financial Statements
We examined the annual financial statements of
Linz,
taking the accounting into consideration. These financial statements include the balance sheet as at 31 December 2010, the
income statement for the financial year ending on 31 December
2010, and the Notes.
for the financial statements and the
accounts
the compilation of the financial statements, presenting a true
and fair view of the assets, financial position and earnings of
the company in compliance with Austrian business and banking laws. This responsibility includes: the design, implementation and maintenance of an internal control system, to the
extent that this is necessary for the preparation of the financial
statements and to present as true a picture as possible of the
group‘s net assets, financial position and profit situation so that
these financial statements are free from material misrepresentations, whether due to intentional or unintentional mistakes. It
also includes choosing and applying suitable accounting and
valuation methods and making estimates that appear appropriate under the existing circumstances.
Responsibility of the auditor and a description of the type and scope
of the statutory audit
Our responsibility lies in the submission of an audit opinion
on these financial statements on the basis of our inspection.
Our audit was conducted in accordance with the applicable
Austrian legal regulations and professional standards. These
standards require that we plan and perform the audit in such a
162
Annual Report 2010
manner that we can form a reasonable opinion as to whether
the financial statements are free of material misstatement.
given in the annual financial statements. The choice of auditing
actions is left to the obligatory discretion of the auditor of the
annual financial statements, taking into account his assessment of the risk of material misstatements occurring, whether
due to intended or unintended errors. In assessing this risk, the
auditor of the annual financial statements takes into account
the internal control system, insofar as it is important for compiling the annual financial statements and presenting a true and
fair view of the assets, financial position and earnings of the
company, in order to determine suitable auditing actions taking
account of the framework conditions, not however to submit an
auditing opinion about the effectiveness of the company’s internal control system. The audit also included my evaluation of
the adequacy of the applied accounting and valuation methods
and the essential estimates made by the legal representatives
of the company as well as an assessment of the overall tenor
of the financial statements.
We believe that we have obtained sufficient and suitable auditing proof, so that our audit provides a reasonable basis for
my opinion.
Auditor‘s opinion
The results of our audit gave no reason for objection. On the
basis of the knowledge gained during the audit, in our judgment the financial statements comply with the legal regulations
and present a true and fair view of the company‘s assets and
financial position as of 31 December 2010 and the company‘s
earnings and cash flow in the financial year from 1 January
2010 to 31 December 2010, in accordance with the Austrian
principles of orderly accounting.
consistent with the financial statements and whether or not
the details according to § 243a para 2 of the Austrian Business
Code apply.
Statement concerning the Management
Report
In our opinion, the management report is consistent with the
financial statements. The details according to § 243a para 2 of
the Austrian Business Code apply.
According to the Austrian legal regulations, the management
report is to be audited as to whether it is consistent with the
financial statements and whether or not other details given in
the management report give a misleading impression of the
company’s financial position. The auditor‘s opinion must also
include a statement as to whether the management report is
Linz, 7 March 2011
KPMG Austria GmbH
Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Martha Kloibmüller
Cäcilia Gruber
163
Statement of the Managing Board
We confirm to the best of our knowledge that these consolidated financial statements, prepared accordinga to proper accounting standards, present a true and fair view of the group’s
assets, financial position and earnings and that the Group’s
management report presents the business development, performance and position of the Group so as to give a true and fair
view of its net assets, financial position and earnings, and the
Group management report provides a description of the principal risks and uncertainties to which the Group is exposed.
We confirm to the best of our knowledge that these financial
statements of the parent company, prepared according to proper accounting standards, present a true and fair view of the
company’s assets, financial position and earnings and that the
management report presents the business development, performance and position of the company so as to give a true and
fair view of its net assets, financial position and earnings, and
the management report provides a description of the principal
risks and uncertainties to which the company is exposed.
Linz, 28 March 2011
THE MANAGING BOARD
Ludwig Scharinger
Hans Schilcher
Georg Starzer
Markus Vockenhuber
The responsibilities of the individual Board members is shown on page 10.
164
Annual Report 2010
Report of the Supervisory Board pursuant to § 96 of
the Stock Corporation Act
Four committees (approval, information, auditing and balance
sheet committees) have effectively supported the entire Supervisory Board in the completion of its work.
The Österreichischer Raiffeisenverband and KPMG Austria
GmbH have audited the accounts, the annual financial statement according to Austrian Business Code/Austrian Banking
Act regulations and the consolidated financial statements
according to the International Financial Reporting Standards
(IFRS) as at 31 December 2010 and the management report
and the group management report for the financial year 2010.
The audits did not give cause for any reservations and all legal
regulations were complied with in full. Consequently, the unqualified audit opinion was given.
The balance sheet committee has audited the financial statements and the consolidated financial statements as at 31
December 2010, the management report and the group management report for the financial year 2010, and determined
that the audit did not give cause for any reservations.
The audit by the balance sheet committee therefore results in
the recommendation to the Supervisory Board to concur with
the results of the auditors and approve the financial statements
as at 31 December 2010 pursuant to §96 (4) of the Stock Corporation Act, to agree to the proposal of the Managing Board
concerning the appropriation of earnings and to note with approval the consolidated financial statements as at 31 December 2010, including the group management report.
The Supervisory Board, in its meeting held on 27 April 2011,
has also audited the financial statements and consolidated financial statements as at 31 December 2010, the management
report and the group management report for the financial year
2010.
The Supervisory Board agrees with the balance sheet
committee‘s auditing results and the Managing Board‘s recommendations regarding the appropriation of earnings and
approves the 2010 financial statements for Raiffeisenlandesbank Oberösterreich, which thereby adheres to §96 (4) of the
Stock Corporation Act, and notes with approval the consolidated financial statements as at 31 December 2010 including the
group management report.
The Supervisory Board would like to thank the Managing Board
and all employees of the Raiffeisenlandesbank Oberösterreich
Aktiengesellschaft and the whole group for their performance
and notable success in financial year 2010.
Linz, 27 April 2011
The Supervisory Board
The Supervisory Board of the Raiffeisenlandesbank Oberösterreich Aktiengesellschaft has fulfilled the tasks incumbent upon
them according to the law and the company articles for the
financial year 2010. The Managing Board has reported regularly, promptly and comprehensively about important business
transactions and the situation and development of the bank
and the group.
Jakob Auer,
165
SUMMARISED REPORT OF THE IFRS
CONSOLIDATED FINANCIAL STATEMENTS OF
THE RAIFFEISENLANDESBANK OBERÖSTERREICH AKTIENGESELLSCHAFT AND THE
ANNUAL FINANCIAL STATEMENTS IN
ACCORDANCE WITH THE AUSTRIAN BUSINESS
CODE OF THE UPPER AUSTRIAN RAIFFEISEN
BANKS
Bank Group
166
Annual Report 2010
Net interest income before first-time consolidation effect RZB Group
First-time consolidation effect RZB Group
Net interest income
Risk provisions
Trading profit
General administrative expenses VIVATIS/efko
Other operating income VIVATIS/efko
Profit for the year
2010
2009
in EUR m
in EUR m
799.6
274.0
843.0
-
1,073.6
843.0
- 177.0
896.6
- 243.1
599.9
225.4
13.8
20.7
- 26.7
7.8
198.7
24.7
- 16.3
- 21.7
- 13.3
- 636.0
- 199.1
76.7
209.9
581.3
- 587.5
68.2
266.0
52.7
- 36.0
634.0
230.0
Income Statement
167
Balance Sheet
ASSETS
31 Dec. 2009
in EUR m
in EUR m
Trading assets
Financial assets
Intangible assets
Investment property
Tax assets
Other assets
285.8
10,853.1
26,906.5
1,560.9
9,793.5
1,649.9
56.0
451.0
109.6
136.2
392.9
355.3
11,245.7
25,691.8
1,237.8
10,905.2
654.3
69.8
415.6
112.3
147.8
530.4
Total
52,195.4
51,366.0
31 Dec. 2010
31 Dec. 2009
in EUR m
in EUR m
168
31 Dec. 2010
Provisions
Tax liabilities
Trading liabilities
Other liabilities
Equity
12,308.3
22,549.5
7,958.3
265.8
49.5
1,227.1
573.2
2,016.5
5,247.2
13,312.7
21,622.4
8,212.2
257.5
127.7
1,011.1
558.8
1,684.6
4,579.0
Total
52,195.4
51,366.0
Annual Report 2010
Notes
Our foremost marketing principle is to assist in preserving and
enlarging the financial leeway of our customers. Because our
customer‘s success is simultaneously success for Raiffeisenlandesbank Oberösterreich and the Upper Austrian Raiffeisen
banks. This collaborative foundation forms a close, long-term
and trust-based customer relationship.
The IFRS consolidated financial statements of Raiffeisenlandesbank Oberösterreich have been merged with the annual financial statements pursuant to the Austrian Business Code of
the Upper Austrian Raiffeisen banks. With its clear customer
commitment, sustainable strategies and professional service
and support, we continued upon the successful path of the
past through financial year 2010.
Income Statement
Raiffeisen Upper Austria can report a very good development
of earnings in 2010. Net interest income rose by 27.4% compared to the previous year. This higher result is attributable to
the companies accounted for at equity. The result of the companies accounted for at equity is the first-time consolidation
effect of the RZB Group amounting to EUR 274 million. Net fee
and commission income increased in annual comparison by
EUR 26.7 million. Overall, the operating revenues for 2010 (net
interest income, net fee and commission income, trading profit and other operating profits) was EUR 1,599.4 million, which
represents an increase of 41% over the previous year. In the
2010 business year the “administrative expenses” included
about EUR 199 million from the GFA companies (Gesellschaft
zur Förderung agrarischer Interessen in Oberösterreich GmbH)
- consisting of the “VIVATIS Holding AG” Group and the “efko
Frischfrucht und Delikatessen GmbH” Group that, because of
the date of the first consolidation as at 31. December 2009,
had no corresponding expense under last year’s item. In the
summarised income statement of the IFRS consolidated financial statements of Raiffeisenlandesbank Oberösterreich these
companies, because of their non-bank business in the food
and beverage industry, are accounted for with the Austrian
Business Code annual financial statements of the Upper Austrian Raiffeisenbanken above all under “other operative earnings” and under “administrative expenses”.
Compared to the previous year, profit for the year rose by EUR
404.0 million or 175.7% to EUR 634.0 million.
Balance Sheet
The consolidated balance sheet total of the IFRS group of the
Raiffeisenlandesbank Oberösterreich and the Upper Austrian
Raiffeisen banks was EUR 52.2 billion as at 31 December 2010.
An increase of EUR 0.8 billion or 1.6% was achieved compared to the previous year. On the assets side, 51.6% came from
loans and advances to customers, 20.8% from loans and advances to banks and 18.8% from financial assets. On the liabilities side, 43.2% of the balance sheet total were amounts
owed to customers and 23.6% were amounts owed to banks.
On the 2010 balance sheet date there was a volume of EUR
26,907 million loans and advances to customers. Compared
to the year before, this amounts to a strong increase of EUR
1,215 million or 4.7%. Amounts owed to customers and securitised liabilities reached a new high point of EUR 30,508 and
climbed by 2.3% in comparison to the previous year. Balance
sheet equity as at 31 December 2010 totalled EUR 5.2 billion.
Raiffeisenlandesbank Oberösterreich and the Upper Austrian
Raiffeisen banks not only ensure the provisioning of finances
for people within the state; they also accept their responsibility as an important trend-setter and reliable partner for Upper
Austria‘s economy.
169
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Owner, editor and publisher:
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Responsible for content:
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