Annual Report of Euram Bank 2019

eurambank

A N N U A L R E P O R T 2 0 1 9

MANAGEMENT REPORT

1. Business developement and economic environment

Business model

As a small private bank, European American Investment Bank Aktiengesellschaft (Euram Bank)

provides banking and other financial services in Austria, Germany, Central and Eastern Europe, in

the Middle East and Central Asia, and in Russia. The focus is on business with private and corporate

clients. Our highly qualified staff are drawn from various nations, reflecting the cosmopolitan

corporate culture of Euram Bank.

Euram Bank is mainly specializing in the business areas of Private Banking / Real Estate Financing

and Asset Management; the Card Payment Services division is operated on an opportunistic basis.

Euram Bank is 100% privately owned. Senior management and financial investors hold a majority

stake in the bank through Euram Holding AG.

Business development

The economic slowdown that has been observable since 2018 continued in 2019, increasingly

influencing the growth forecast for 2020 as well. The continuing weakness was the consequence

of persistently high political uncertainty. The negotiations regarding the settlement of the

trade conflict between the USA and China were continuing, negatively affecting the Chinese

economy in particular, which recorded a decline in momentum. Moreover, in view of the earlier

parliamentary elections in Great Britain in mid-December, the further progress of Brexit was

unclear. Apart from political tensions in the Middle East, political unrest in South America had

recently increased as well. Even Hongkong has been marked by increasing political unrest.

In the USA, the Federal Reserve Bank reduced the prime rate late in October, for the third time

in that year, to a range of currently between 1.5% and 1.75%.

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