Management Report Total balance (in million EURO) Total assets Total assets increased by EUR 201.8 million or 3.0 % to EUR 6,870.2 million in the reporting year. Asset growth was predominantly due to an increase in "Due from customers" by EUR 180.4 million or 3.8 % to EUR 4,876.8 million and in "Bonds and other fixed-interest securities" by EUR 110.2 million or 11.7 % to EUR 1,055.6 million. The item "Due from customers" thus represents a 71.0 % share of total assets. As far as liabilities are concerned, "Savings deposits" of the item "Due to customers" slightly increased by EUR 6.7 million to EUR 974.7 million. Due to the declining demand for issues, "Securitized Liabilities" slightly dropped by 0.7 % to EUR 4,086.5 million. Nevertheless, our issuing volume, representing 59.5 % of total assets, contributes the most to refinancing the assets. Our AAA rating (Standard & Poor’s) and our Aaa rating (Moody's) presently still allow us to carry out favourable refinancing on the international capital markets. We expect higher refinancing costs from 2007 since deficiency guarantee provided by the province of Vorarlberg has been abolished. In June 2003, we floated a Tier 1 issue in the amount of EUR 50.0 million, which was rated A2 by Moody’s. Lending business 1998 1999 2000 2001 2002 2003 An increase of 3.8 % or EUR 180.4 million to EUR 4,876.8 million could be achieved on the prior year. The Bank's loan portfolio continues to be highly balanced. Demand for foreign currency financing in Swiss Francs remains strong. Swiss Franc lendings – 3,735.5 4,228.5 4,945.2 6,052.0 6,668.4 6,870.2 42/43 Bericht des Aufsichtsrates/ Financial statements as at 31 December 2003 partially as a result of our regional head office in St. Gallen – were up EUR 234.0 million, now totalling EUR 1,479.9 million. In the first half of 2003, many customers converted their loans at an advantageous point in time due to the development of the Japanese Yen. About 66 % of our lendings are outstanding in Euro currencies, 31 % in Swiss Francs, and only 3 % in Japanese Yen. Lendings in Euro could be raised by EUR 153.6 million to EUR 3,221.8 million. Corporate services Corporate services represent a core division of the Bank's activities. They account for EUR 4,026.7 million of lendings. Net growth in the year 2003 concerned predominantly small businesses at EUR 60.8 million, real estate leasing at EUR 60.7 million, the federal provinces that were up EUR 53.3 million, the leasing of movables at EUR 22.2 million, as well as municipalities with an increase of EUR 16.3 million. <strong>Hypo</strong> corporate banking <strong>Hypo</strong> <strong>Landesbank</strong> has a long and very successful tradition of corporate banking. In the past years, we have introduced innovative trends: The <strong>Hypo</strong> Academy for entrepreneurs was called into life and a <strong>Hypo</strong> guideline for entrepreneurs was issued. By organizing a <strong>Hypo</strong> brunch for entrepreneurs twice a year, <strong>Hypo</strong> <strong>Landesbank</strong> offers decision-makers of the economic sector an interesting communication platform.
Lendings (in million EURO) Savings Deposits (in million EURO) Issues (in million EURO) Participation certificate 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 1999 2000 2001 2002 2003 4. Q. 2001 2. Q. 2002 4. Q. 2002 2. Q. 2003 4. Q. 2003 2,665.1 3,136.8 2,002.1 877.7 763.9 875.3 968.0 974.7 3,720.3 82.0 82.15 83.3 3,683.8 4,113.5 4,086.5 84.4 84.4 4,297.9 4,696.4 4,876.8