contributions to growth again. Business activity in Germany and industrial production have only increased slightly during the period under review. Ever since its formation in 1999, EuramBank remained true to its successful strategy. A strong focus on business areas that require a high amount of advisory service and consciously avoiding retail business have proven successful – to private banking, asset management and card payment services alike. Owing to the experience and commitment of our outstanding staff, and very good performance in all investment strategies, the confidence and expectations of our clients were again not disappointed in the financial year 2014/2015, despite the difficult market environment. Our competence and many years’ experience in advising our clients in wealth and investment matters, our reliable and committed way of working, and the risk-aware management of the assets entrusted to us absolutely proved their worth. The balance sheet total increased as compared to the previous year by 4.8% from EUR 148.1 million (30.6.2014) to EUR 155.2 million. “Receivables from customers” increased by 38.6% to EUR 79.6 million (EUR 57.4 million as at 30.6.2014), the “Liabilities to customers” also increased by 6.5% to EUR 133.9 million (EUR 125.7 million as at 30.6.2014). As per 30 June 2015, “Cash at hand and balances with central banks” amounted to EUR 1.4 million; the decline by 94.5% as compared to the previous year (EUR 26.4 million as at 30.6.2014) is due to regrouping of cash and cash equivalents to “Debt instruments issued by public authorities and bills of exchange admitted for refinancing with the central bank” (EUR 9.0 million) and “Debentures and other fixed-income securities” (EUR 9.0 million). “Claims against credit institutions” amounted to EUR 49.2 million (EUR 57.0 million as at 30.6.2014), the “Liabilities to credit institutions” amounted to EUR 2.6 million at the end of the financial year (EUR 2.1 million as at 30.6.2014), due to the minor importance of this type of refinancing in the financial year 2014/2015.
In spite of the low level of interest rates and due to the continued focus on quality when investing liquidity, net interest income increased to EUR 1.2 million (EUR 1.0 million as at 30.6.2014). In the period under review, operating income decreased from EUR 8.3 million (30.6.2014) to EUR 6.7 million. As mentioned already, EuramBank successfully sold an innovative and customized card-based payment processing product developed with international partners to an international partner in the financial year 2013/2014. In the financial year 2014/2015 the final payment of EUR 3.0 million arising from this sale was recognized in profit or loss. 14 15 As in the financial year 2013/2014, operating expenses were reduced again and amounted to EUR 6.8 million (EUR 7.6 million as at 30.6.2014). This was due to a reduction in payroll costs to EUR 3.4 million (EUR 3.8 million as at 30.6.2014), primarily due to the elimination of performance-related remuneration components, on the one hand, and to reduced administrative expenses of EUR 3.2 million, which fell by 13.2% (EUR 0.5 million), on the other hand (EUR 3.7 million as at 30.6.2014). The slightly negative operating result amounted to EUR -54 thousand (EUR 763 thousand as at 30.6.2014). Income from the release of value adjustments of receivables and of accruals for contingent liabilities and for credit risks amounted to EUR 87 thousand (as per 30.6.2014, value adjustments for receivables of EUR 91 thousand were reported), value adjustments for securities and for investments and shares in affiliated companies amounted to EUR 59 thousand (EUR 138.3 thousand as at 30.6.2014). The slightly negative result on ordinary activity accordingly amounted to EUR -26 thousand (EUR 534 thousand as at 30.6.2014). Tax compensation and deferred taxes had a positive influence on the item “income and earnings tax”, in the amount of EUR +219.2 thousand (EUR -231.9 thousand as at 30.6.2014), the annual surplus thus amounted to EUR 193.2 thousand (EUR 302 thousand as at 30.6.2014).