Annual Report of Euram Bank 2019

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2. Anticipated trends and risks

Outlook for 2020

The coronavirus epidemic is negatively impacting on the global economy. The virus initially

occurred in China late in 2019 and has spread to many other countries in the meantime. As the

Covid-19 epidemic is spreading to Europe and Austria, substantial negative effects on the domestic

economy and the unemployment rate are to be expected in spite of the intended measures to

support the economy and apart from the effects already felt in everybody’s daily routines.

Significant losses at many stock exchanges and the distortions observable on the capital market

also contribute to increasing market risk. Therefore, it will be indispensable to revise the previous

economic forecasts for the year 2020 taking account of these developments. Due to the dynamic

development of the coronavirus pandemic and of the support measures that are still being

evaluated, it is not possible at the moment to estimate the amount of financial effects on fiscal year

2020. The best possible protection of the health of employees and customers, while simultaneously

maintaining business activities, is considered a top priority by the Managing Board of Euram Bank.

Over the past few weeks Euram Bank has taken far-reaching precautions regarding the coronavirus.

Obviously, the decisions and recommendations of the Austrian federal government are implemented

within the scope of all further planning. Moreover, Euram Bank has implemented a business

continuity management system that safeguards the availability of business processes.

In the 2020 fiscal year, the Private Banking / Real Estate Financing division is going to continue to

follow the successful course taken in fiscal year 2017, namely the development of holistic strategies

to maintain capital and assets, based on individual planning, combined with first-class customer

service. Equally, the financing of carefully selected real estate projects in Austria and Germany are

meant to be maintained at the currently high level; there are still no plans to expand this area of

business. In cooperation with the Asset Management division, the focus is on the acquisition of

additional customer security holdings, as in fiscal year 2019.

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