team spirit - Bankier.pl

Outlook
With the planned expansion of the branch network and alternative
distribution channels, we will further strengthen our
competitive position in retail banking. We aim to use synergies
from the large banking group for cross-border business while
further intensifying our efforts to strengthen our position in
the business customer market, a fast-growing segment in the
Hungarian banking sector.
Slovenia –
Bank Austria Creditanstalt Ljubljana
€ m 2005 2004
Total assets 1,884 1,251
Net income before taxes 14.3 12.5
ROE before taxes 12.0 % 16.3 %
Cost/income ratio 58 % 58 %
Employees (full-time equiv.) 391 336
Offices 13 11
Driven by exports, Slovenia’s
economy grew by close to
4 % in 2005, almost matching
the growth rate of the previous
Ljubljana
year. Despite the strong economic performance,
inflation declined to an
average rate of 2.5 %, remaining on
course towards meeting the Maastricht criterion.
This result was achieved through a cautious monetary
policy and a well-coordinated fiscal policy, two factors which
also helped to keep the country’s external position stable in
2005, with a current account deficit of below 1% of GDP.
Measured by total assets, BA-CA Ljubljana increased its market
share from 5.4 % at the end of 2004 to 6.5 % at the end
of 2005, which means that the bank now ranks 5th in the
Slovenian banking market. The expansion of the bank’s branch
network is by and large complete. After the opening of a
branch in Nova Gorica, BA-CA Ljubljana now has a presence
in all major business centres in Slovenia, offering retail and
corporate customers a focused range of banking products and
services.
Net income before taxes was SIT 3,427 m, up by 15 % on the
previous year. Net interest income rose by 25 %, reflecting volume
growth in business with private customers (especially in
mortgage loans) and large corporate finance transactions. As
a result, total assets increased by over 50 % to SIT 451 bn.
BA-CA Ljubljana was the first CEE banking subsidiary of Bank
Austria Creditanstalt to create the technical requirements for
introduction of the Basel II standard approach. The bank
worked closely with BA-CA in Vienna and with WAVE, BA-CA’s
IS solutions provider, in the smooth system rollout, which
ensures daily reporting from Ljubljana to Vienna.
Business structure and development
Retail customers
In 2005, sales of mortgage loans continued to increase; the
total volume of such loans grew by over 65 %, giving us a
market share of 11% in this segment.
Since 1 March 2005, eight Capital Invest mutual funds have
been admitted to public offering in Slovenia. Sales of mutual
funds in 2005 totalled € 27 m, far exceeding expectations. Private
banking customers display particularly strong demand for
products with a CEE focus.
Corporate customers
The regional service approach applied to small and mediumsized
companies is proving successful: loans in this customer
segment rose by more than 50 %.
BA-CA Ljubljana is market leader in business with foreign
corporate customers. We have further expanded our strong
position as a provider of services to major local companies.
The bank became the pioneer in cash management for large
local and multinational companies, under the legal framework
created by Slovenia’s central bank and super-
www.ba-ca.si
visory authorities for such business at the
beginning of 2004. BA-CA Ljubljana is currently the only bank
in the Slovenian market to make available a complete range of
cash management services. The bank has thus taken initial
steps to develop this promising business area.
Slovenia’s booming export sector offers considerable business
potential which is used by the local trade finance unit. BA-CA
Ljubljana provides tailor-made buyer credits to local exporters
for their international transactions. Buyer credits can be flexibly
adjusted to local legal requirements and to special features
of government export credit insurance.
International Markets
Our Treasury units responded swiftly to the rare opportunity
available in the Slovenian foreign exchange and money markets
in 2005: minor fluctuations of the Slovenian tolar’s
exchange rate against the euro were the basis for extremely
attractive interest rate hedging and arbitrage opportunities.
We are also market leader with our custody services. At the
end of 2005, assets under custody totalled € 478 m. Our
expertise has been recognised by the renowned magazine
Global Custodian, which named BA-CA Ljubljana “Best agent
bank in Slovenia” in 2005.
CEE Network of Bank Austria Creditanstalt in 2005 85