AnnuAl report 2007 - Raiffeisen Landesbank Tirol

19Income situationThe development of operating incomein 2007 was pleasing. It was possibleto raise it from 5.9 per cent, or EUR5.66 million, to EUR 101.27 million.The net interest income increased by11.0 per cent, or EUR 4.45 million, toEUR 44.76 million, the income fromcommission by 8.0 per cent, or EUR2.25 million, to EUR 30.29 million,and the income from securities andinvestments by 14.1 per cent, or EUR1.6 million, to EUR 12.93 million. Thedevelopment of the income/expensesfrom financial business was equallypositive. Here, an increase of 11.5per cent, or EUR 0.28 million, to EUR2.71 million, was achieved. The otheroperating income decreased, dueto special effects in 2006, by 21.6per cent, or EUR 2.91 million, to EUR10.59 million.Operating expenses were kept atthe level of the previous year, and itwas even possible to reduce themslightly, by 0.1 per cent, or EUR 0.06,to EUR 66.04 million. There was aslight development in personnel costsand other administrative expenses.Personnel expenses increased by 4.2per cent, or EUR 1.6 million, to EUR39.98 million, and other administrativeexpenses by 5.3 per cent, or EUR1.04 million, to EUR 20.62 million.The other expense items showed anextremely positive picture. Provisionsfor assets fell by 22 per cent, or EUR1.25 million, to EUR 4.43 million, andother operating expenses decreasedby 58.8 per cent, or EUR 1.46 million,to EUR 1.02 million.Despite the systematic pursuit of ourprovision-oriented value adjustmentpolicy, the balance from provisionsfor loans and to certain securities andallocation to contingent liabilities, andincome from reversals of provisionsfor loans and to certain securities andreversals of contingent liabilities wascut by 20.6 per cent, or EUR 3.59million, to EUR 13.80 million. Thebalance of provisions for securitieswhich are valued as financial assetsand provisions for investments andshares in affiliated companies, againstincome from the reversal of securitieswhich are valued as financial assetsand of investments and shares in affiliatedcompanies increased by 203.4per cent, or EUR 7.64 million, to EUR3.88 million. This development canbe attributed to the difficult frameworkconditions, in particular in the secondhalf of 2007.The result from ordinary businessactivities for the year under reviewwas up by 10.5 per cent, or EUR 1.67million, at EUR 17.55 million.Management reportBranchesAs of 31 December 2007, Raiffeisen-LandesbankTirol AG wasrepresented in the market territoryby 21 branches, three of which areself service. The employees at ourbranches look after more than 65,000private and corporate customers.In order to further consolidate thepersonal proximity to our customers,a new branch was opened in 2007 inthe Pradl district of Innsbruck.Human resourcesDuring the 2007 financial year, Raiffeisen-LandesbankTirol AG had anaverage of 520.8 employees (499white-collar and 21.8 blue-collar). Thisrepresented a slight increase of 2.5per cent over 2006.