Annual Financial Statements 2011 of Bank Austria

Management Report
Management Report (CONTINUED)
customer business segments, RARORAC for CEE is lower, at
5.75%, compared with 8.48% for the Austrian customer business
segments. This reflects the higher equity allocated to CEE and the
different cost of capital.
The strong increase in equity in the three segments of Austrian
customer business reflects the low base figure in the CIB Division
after deduction of the former UniCredit CAIB at the beginning of
2010. More importantly, since the beginning of 2011, capital
allocation has been based on actual risk-weighted assets of the
preceding quarter (previously on planned RWAs). The increase in
RWAs resulting from the stronger Swiss franc also led to a significant
increase in equity allocated to the F&SME Division compared
with the previous year.
BAnK
AUSTrIA
3 AUSTrIAn
SEgmEnTS 1) CEE CC 2)
Branches
End of 2011 3,040 290 2,750
End of 2010 3,033 299 2,734
Change +7 –9 +16
Employees (FTEs)
End of 2011 59,345 5,744 51,517 2,083
End of 2010 (recast) 59,288 5,549 51,598 2,141
Change +57 +195 –80 –58
End of 2010 (original) 59,653 5,820 51,616 2,217
Change –308 –76 – 99 –134
1) Divisionen PKMB, Private Banking und Corporate & Investment Banking (CIB)
2) CC = Corporate Center = Global Banking Services plus Competence Lines
The number of branches of Bank Austria rose by 7 in the period
since the end of 2010. Net additions to the branch network in Turkey
(+37), the Czech Republic (+26), Slovenia (+8), Serbia (+5)
were offset by reductions in Ukraine and Kazakhstan (together
–62, including the elimination of regional administrative centres);
there were also minor changes in the other countries. These are
net changes, i.e. banks in some countries (e.g. Russia) closed
branches in some locations where they had a multiple presence,
while new branches were opened in promising locations. In Austria,
the number of branches declined by 9, in connection with closures
in Vienna where branches were located very near to each
other. The expansion of specialised regional centres serving corporate
customers does not count as additions to the branch network
because these regional centres use the premises of existing
Bank Austria branches.
Staff numbers in Bank Austria were up by 57 full-time equivalents
(FTEs) from year-end 2010 (in the current consolidation
perimeter) to the end of 2011. In the CEE business segment, overall
staff numbers declined by 80 FTEs (–0.2%) with strong underlying
movements. The above-mentioned restructuring in Ukraine (–666)
and Kazakhstan (–317) compared with an expansion in Turkey
(+496) and in the Czech Republic (+179), and additional staff was
recruited even in Hungary (+45 FTEs). Staff numbers in Austrian
customer business were up by 195 FTEs on the recast 2010 figure.
The main reason for the increase was the addition, involving
118 FTEs, of three smaller services and settlement companies (card
business and electronic payments) to the consolidation perimeter
without retrospective adjustment in the income statement (and of
staff numbers). The remaining part of the increase related to the
F&SME Division’s initiative to strengthen staffing levels for sales
activities at branches, including young new entrants under the “Best
Start” programme, and to Private Banking (net addition of 12 FTEs).
Staff numbers in the Corporate Center declined by 134 FTEs compared
with the unadjusted figure at the end of 2010. This was the
net effect of several major changes: decentralised Competence
Lines (controlling and communication functions) were retransferred
from the business divisions to the head office; the number of
employees in Global Banking Services declined significantly as a
result of Group-internal transfers and outsourcing to external companies.
The largest change resulted from the transfer of 254 IT
experts (243 FTEs) as part of the outsourcing of various software
development activities and computer centre operations to Blue IT
Services GmbH, a subsidiary of IBM Austria.
Relative size Austria/CEE (€ bn and % y/y)
63.8 –1% y/y
38.4 –9%
3.4 +17%
+6% 67.2
Austria CEE
81.5 +8%
11.9 +8%
Average loans
to customers
Risk-weighted assets
Allocated equity
Bank Austria · Annual Financial Statements 2011
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