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were € 2.3 bn or 10 % higher than a year earlier. Investments
(€ 18.2 bn) increased by 5 % in 2005, with bonds and other
fixed-income securities accounting for most of this growth.
This item mainly reflects consolidation of the most recent
acquisitions. Trading assets (€ 17.7 bn) were slightly lower
(– 5 %) than a year earlier, mainly due to the closing of derivative
interest-rate/currency positions at CEE subsidiaries.
On the liabilities side, expanding primary funds (€ 90.0 bn,
including subordinated capital) accounted for 70 % of the
increase in the balance sheet total. They rose by € 7.2 bn or
9 % and represented 57 % of the balance sheet total. The
strongest increase was seen in amounts owed to customers,
which were up by € 4.0 bn (+ 7 %); within this increase, € 3.4 bn
(+ 20 %) related to the CEE business segment (primarily
Poland), and BA-CA’s other units achieved combined growth
of over 3 % in funds entrusted to them by customers. Given
the high liquidity level in the business sector, most of the
increase in funds from customers was seen in short-term categories
with maturities below three months. Savings deposits
rose by 3 % to € 18.1 bn (11% of the balance sheet total).
Liabilities evidenced by certificates (€ 22.7 bn) increased by
€ 3.1 bn or 16 % through issuance of longer-term bonds. Subordinated
capital rose by 2 %, mainly on account of an issue
eligible as Tier 1 capital and launched via BA-CA Cayman. As
on the assets side, interbank business (€ 44.2 bn), and in this
connection primarily overnight money, again showed stronger
growth in 2005 (up by € 4.4 bn or 11%). Trading liabilities
were reduced by 24 % to € 6.8 bn.
Shareholders’ equity excluding minority interests rose by € 411 m
(6.4 %) to € 6.9 bn. The main components of this increase
were the inclusion of consolidated net income (€ 964 m), the
dividend payment for 2004 (– € 221 m), as well as valuation
results relating to the defined-benefit pension and severancepayment
obligations (– € 552 m) which arose mainly from the
reduction of the applied interest rate.
Capital resources pursuant to the
Austrian Banking Act
The assessment basis pursuant to the Austrian Banking Act
(banking book) increased by a total of € 4.4 bn or 6.2 % to
€ 75.3 bn in 2005. The CEE banking subsidiaries accounted
for most of this increase, through higher volumes in combination
with mostly rising exchange rates and through the firsttime
inclusion of acquired banks. The capital requirement for
the banking book was consequently € 350 m above the level
at year-end 2004.
Net capital resources rose by € 380 m (+ 4.3 %) to € 9.2 bn in
2005. The € 669 m increase (+12.0 %) in Tier 1 capital to
€ 6.2 bn resulted mostly from the retention of profits, with a
smaller portion also coming from higher exchange rates. In the
40 Management Report of the Group
first quarter of 2005, we issued Tier 1 capital amounting to
€ 150 m via hybrid instruments. Various consolidation effects
had an offsetting impact.
As Tier 1 capital rose more strongly than the assessment basis,
the Tier 1 capital ratio increased by 44 basis points, from
7.85 % to 8.29 %. As supplementary elements declined and
deductions increased, the total capital ratio decreased from
12.37 % to 12.16 %.
Events after the balance sheet date
Changes in interest rates on savings deposits
In January 2006, following legal proceedings conducted as a
test case, a competitor was served with a decision of the Austrian
Supreme Court (3 Ob 238/05d of 21 December 2005)
regarding changes in interest rates on savings deposits. As the
decision of the Austrian Supreme Court was issued only
recently and the circumstances are very complex, it is not possible
at present to make a fair and reasonable estimate of any
amounts of interest that may have to be refunded. For this
reason Bank Austria Creditanstalt was unable to make a provision
in the financial statements for possible claims.
Changes in the Managing Board and the
Supervisory Board
With effect from the end of the Extraordinary Meeting of
Shareholders held on 25 January 2006, Michael Mendel and
Michael Kemmer resigned from the Supervisory Board. With
effect from the same date, Alessandro Profumo, Carlo Salvatori
and Sergio Ermotti were elected as new members of the
Supervisory Board. At the extraordinary meeting of the Supervisory
Board held on 25 January 2006, Carlo Salvatori was
elected Chairman of the Supervisory Board. Alberto Crippa
resigned from the Supervisory Board after the Extraordinary
Meeting of Shareholders with effect from 25 January 2006. As
Wolfgang Lang resigned from the Supervisory Board, Heribert
Kruschik was delegated to the Supervisory Board in accordance
with a decision by the Employees’ Council with effect
from 1 January 2006. At the extraordinary meeting of the
Supervisory Board held on 25 January 2006, Robert Zadrazil
was appointed to the Managing Board.