Annual Report of Euram Bank 2019

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Severance pay obligations

The provision for severance payments is determined according to actuarial principles using an interest

rate of 2.72% (previous year: 3.21%) and on the basis of a calculatory retirement age of 60 years for

women and 65 years for men. No staff turnover deduction is determined. For the fiscal year 2019,

Euram Bank AG used the discount rate announced by Deutsche Bundesbank (10-year average), with a

residual term of 15 years (2.72%). The interest rate selected and its calculation shall continuously be

applied from now on.

Other provisions

In the other provisions, in accordance with the principle of prudence, all risks discernible as

well as liabilities uncertain in terms of amount and on the merits at the time of preparation of the

balance sheet are accounted for in amounts that will be required according to reasonable

commercial judgement.

Liabilities

Liabilities are recognized at the repayment amount including deferred interest.

Contingent liabilities

Contingent liabilities include financing guarantees granted and secured by credit institutions,

securities, mortgages or in cash in the amount of EUR 0.1 million (EUR 0.1 million as at 31/12/2018).

In the fiscal year 2019, no unsecured financing guarantee was granted (31/12/2018: none).

Credit risks

This position includes the amount of unused credit facilities in the amount of EUR 7.8 million

(EUR 2.1 million as at 31/12/2018), as well as guarantees towards credit card companies for

credit lines granted to Euram Bank customers in the amount of EUR 1.7 million (EUR 1.5 million as

at 31/12/2018).

Fiduciary receivables

Fiduciary receivables are contained in the following items:

– Shares and other non-fixed interest securities: EUR 0.0 thousand (31/12/2018: EUR 0.0 thousand)

Fiduciary liabilities

Fiduciary liabilities are contained in the following items:

– Securitized liabilities: EUR 0.0 thousand (31/12/2018: EUR 0.0 thousand)

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