team spirit - Bankier.pl

“As a bank with growing business volume, we deliberately take more risk on our books while aiming to
reduce the relative risk content of business. In these efforts we are supported by progress in quantitative
risk management methods. On the basis of our rating advisory service and a financial structure analysis, we
also want to enhance our customers' credit rating. We improve the employment of capital by placing risks
in the secondary market or via derivatives, with no impact on customer relationships. This helps us to free
up additional resources for expansion in strategically important areas.”
The presentation of our risk exposure in this section is based
on all assets involving credit risk. This corresponds to the BA-
CA risk position on a consolidated basis. The following table
shows a breakdown of the risk position according to balance
sheet items, including guarantees and undrawn portions of
credit facilities.
€ m as at 31 December 2005 *) Loans and advances to,
2004 2003
and placements with, banks 26,556 23,995 25,130
Loans and advances to customers 88,317 81,260 75,997
Trading assets
Investments excl. interests in
17,887 18,590 16,140
subsidiaries and other companies 8,885 14,420 13,319
Contingent liabilities and commitments 23,327 18,250 19,888
TOTAL 164,972 156,515 150,474
*) Balance sheet figures including non-current assets classified as held for
sale (see note 20 to the consolidated financial statements of BA-CA).
The categories listed above cover the following products:
� Loans and advances to, and placements with, banks comprise
loans, advances and money market placements.
� Loans and advances to customers (private individuals, businesses
and public entities) include loans (revolving loans, term
loans and overdraft facilities), mortgage loans, export loans and
finance lease receivables.
� Trading assets comprise bonds and other fixed-income securities,
shares and floating-rate securities, positive market values
of derivative financial instruments and other trading assets.
� Investments excl. interests in subsidiaries and other companies:
bonds and other fixed-income securities, shares and floating-rate
securities. Not included are interests in subsidiaries,
interests in companies accounted for under the equity method,
and investment properties.
� Contingent liabilities and commitments include letters of
credit and other trade-related guarantees, loan commitments
not yet utilised, and acceptances and endorsements. From
2004, excluding contingent liabilities to companies included in
consolidation.
Johann Strobl, Managing Board member, Chief Risk Officer (CRO)
Further increase in risk exposures
and risk-weighted assets
Loans and advances to customers grew by almost 9 % to
€ 88.3 bn – most of the increase resulted from our expansion
in Central and Eastern Europe (see note 15 to the consolidated
financial statements of BA-CA). Risk exposures rose from
€ 156.5 bn at the end of 2004 by 5 % to € 165.0 bn at yearend
2005. While the risk exposures in CEE increased by about
18 % to € 37.8 bn, they grew by 2 % to € 127.1 bn in the rest
of the BA-CA Group. In interbank business, loans and
advances to, and placements with, banks were up by over
10 % to € 26.6 bn. Risk-weighted assets (RWA), calculated
pursuant to the Austrian Banking Act, rose from € 70.9 bn at
the end of 2004 by 6.2 % to € 75.3 bn at year-end 2005. The
changes within the individual segments reflect Bank Austria
Creditanstalt’s business model: increases in the CEE segment
and in the Private Customers segment, virtually no changes in
the SMEs and Large Corporates and Real Estate segments.
Risk exposures *) and risk-weighted assets (in € bn)
168.9 –5.8%
78.6
– 6.7%
72.0
31 Dec. 2001
159.1 – 5.4%
76.4
– 2.4%
67.2
31 Dec. 2002
150.5
76.0
+ 4.0%
+ 8.1%
65.6
31 Dec. 2003
156.5
81.3
+ 5.4%
+ 6.2%
70.9
31 Dec. 2004
Loans and advances to, and placements with, banks,
guarantees, undrawn portions of credit facilities
Loans and advances to customers
Assessment basis (risk-weighted assets, banking book)
165.0
88.3
75.3
31 Dec. 2005
*) Risk volume by product category – based on balance sheet items – including guarantees
and undrawn portions of credit facilities
Risk Management 93