Financial and non-financial performance indicators The capital resources of EuramBank continue to be excellent. The eligible capital for the purposes of Part 2 of EU Regulation no. 575/2013 amounted to EUR 15.4 million (EUR 15.4 million as at 30.6.2014), and the overall risk value under Article 92 of the Regulation (EU) 575/2013 amounts to EUR 65.5 million (EUR 58.9 million as at 30.6.2014). The total capital ratio ((eligible capital )/ (overall risk value)) amounts to 23.5% (26.1% as at 30.6.2014), which is well above the legal minimum. The equity capital reported consists entirely of Tier 1 capital. The cost/income ratio (administrative expenses/revenue) amounted to 100.8% (90.9% as at 30.6.2014) due to the slightly negative operating result. In the financial year 2014/2015, a net profit of EUR 197.4 thousand was earned. After passing a respective resolution in the annual general meeting in November 2015, EuramBank will not distribute a dividend to its shareholders. EuramBank is a wholly owned subsidiary of Euram Holding AG. In the financial year 2014/2015, two shareholders of Euram Holding AG sold their shares in Euram Holding AG to several international investors – further sales of shares by existing shareholders to investors with strategic potential for EuramBank are not excluded in the financial year 2015/2016. Retaining experienced and committed staff is a fundamental precondition for any enterprise’s long-term success. The qualification of its staff is of utmost concern for EuramBank. EuramBank offers its employees the opportunity of ongoing training and development to achieve their personal and career goals by systematically developing their competencies. Events of particular importance after the balance sheet date of 30 June 2015 In the general assembly meeting on 28.7.2015, Dr. Peter Maser was elected a member of the Supervisory Board.
2. Anticipated trends and risks Prospects for 2015/2016 18 19 We anticipate that the growth of the global economy will gain momentum in 2015 and 2016, but will remain subdued compared to the time before the crisis; additionally, the distribution of growth over the various global regions will change compared to the past years. An acceleration of economic activity will be supported by very favourable monetary conditions, a slower consolidation of public households, an improved financial situation, and reduced oil prices. However, investments need to pick up yet. The appreciation of the US dollar versus most other currencies has resulted in a marked adjustment of exchange rates. Due to the resulting relative price effects, global demand is shifting more towards Europe, Japan and some emerging markets. Within the group of emerging markets, growth is slackening due to individual factors in China, Brazil and Russia. Without structural reforms to eliminate bottlenecks, growth rates might remain weak in these countries. Exceptional risks include geopolitical upheavals and a situation of serious financial instability that might emerge, if the exit from the zero-interest strategy in the United States fails to take place in an orderly manner, if Greece fails to reach a satisfactory agreement with its creditors, or if the Chinese economy experiences a hard landing. In order to avoid these risks and to get the global economy back on a more sturdy, more stable course of growth, mutually reinforcing measures of monetary, fiscal and structural politics are required. For the Private Banking division, the financial year 2015/2016 will bring a clear focus on integrated strategies to maintain capital and assets, based on individual planning combined with firstclass customer care. Additionally, the division plans to extend its product range for clients from Austria and Germany – with a focus on the financing of residential and commercial real estate projects. With our competence in financing matters, swift processing and transparent communication, we intend to use these market opportunities successfully. The Asset Management division will consistently pursue the conservative investment