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Net trading result
€ m 2005 2004 2003 2002 2001
237 233 220 231 261
In this environment, BA-CA demonstrated its expertise and
achieved a net trading result of € 237 m, exceeding the high
figure of the previous year by 2 %. The contribution from
BA-CA Cayman, which is part of the Corporate Center segment,
was positive, though slightly lower than in the previous
year. Quite generally, 2005 was characterised by a belowaverage
performance of the hedge fund industry, especially
convertible arbitrage strategies.
� General administrative expenses rose by € 143 m or 6 %
to € 2,622 m in 2005. Costs again rose at a slower pace than
revenues, reflecting a further improvement in productivity.
Almost all of the increase in general administrative expenses
was recorded in the CEE business segment (up by € 132 m or
19 %). In this segment, exchange rate effects amounted to
€ 55 m and changes in the group of consolidated companies
accounted for € 41 m. Adjusted for exchange rate effects and
additions to and disposals of consolidated companies, general
administrative expenses in the CEE segment increased by € 35 m
or 5 %. Total costs in the other business segments rose by only
1%; in the three Austrian customer business segments, general
administrative expenses remained unchanged. The 2005
income statement reflects a special expense of € 23 m related
to the integration into UniCredit Group.
Results for 2005
Effect on results in € m (bars)
and change in %
Net interest income
Net charge for losses
on loans and advances
Net fee and commission income
Net trading result
Operating revenues 1)
General administrative expenses
Operating profit
Net result from investments
Amortisation of goodwill 2)
Allocation to provisions for restructuring costs
Net income before taxes
Consolidated net income
1) including the balance of other operating income and expenses,
after the net charge for losses on loans and advances
2) from 2005, regular tests for impairment instead of amortisation of goodwill
General administrative expenses
€ m 2005 2004 Change
Bank Austria Creditanstalt 2,622 2,479 +143 6 %
Cost/income ratio 61.6 % 64.9 %
Central and Eastern Europe (CEE) 824 692 +132 19 %
Cost/income ratio 54.0 % 58.1%
Other business segments 1,798 1,787 +11 0.6 %
Cost/income ratio 65.0 % 66.7 %
Staff costs – the largest cost component, representing 57 % of
the total figure for general administrative expenses – increased
by 5 % in 2005. The average number of employees (full-time
equivalent) in the Group was 647 higher than in 2004
(+ 2.2 %), which corresponds to the net effect of the reduction
of 920 (– 7.5 %) in Austria and the increase of 1,567 in
CEE. Non-staff expenses, including IT expenses and IT development
costs, rose by 9 %. Depreciation and amortisation
remained stable (+1%).
In 2005, the cost/income ratio improved from 64.9 % to
61.6 % (the figure for 2003 was just under 70 %). The
cost/income ratio in CEE was reduced by over 4 percentage
points to 54.0 %; in Austria it declined slightly, by 1.5 percentage
points to 64.3 %. The efficiency-enhancing measures initiated
in 2005 suggest that the cost/income ratio will further
improve in Austria, too.
� The net result from investments, amounting to € 282 m
in 2005 (2004: a net loss of € 8 m), mainly reflected one-off
+6%
+24%
–108 € m
+5%
+6%
+2%
+36 € m
+71 € m
+7%
+18%
+21%
+31%
+290 € m
+10%
+12%
+46%
+58%
+50%
–150 –100 –50 0 50 100 150 200 250 300 350 400 450 500
Decrease Increase
Change on previous year as stated in the income statement
Change on previous year adjusted for one-off effects
+52%
Management Report of the Group 29