Annual Report 2007

Annual Report

Annual Report 

2007

We are committed to our customers 

Ludwig Scharinger, 

Chief Executive and Chairman of 

the Managing Board 

Annual Report 07 

The success of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft depends 

on the success of our customers. Together with our customers, we exploit oppor - 

tunities and provide innovative services in Austria, Southern Germany, the Czech 

Republic and in new markets. 

Funds placed exclusively in the hands of our customers 

Recognising chances with our customers and exploiting opportunities remained one 

of our important goals in 2007. The fact that the financing volume of Raiffeisen - 

landesbank Oberösterreich increased by 27.4 percent underscores the strength of 

this successful partnership with our customers: we have made all the funds available 

to us available to them. 

We are true to our customers 

The past year has shown clearly: the bank which remained true to its customers, 

which did not re-sell any loans or permit any unpredictable financing such as subprime 

mortgages, was successful. For Raiffeisenlandesbank Oberösterreich Aktiengesellschaft 

it is a fundamental banking principle to only make and permit trans - 

actions whose risks can be calculated and traced and those which can be recorded 

clearly in the bank books and tracked through bookkeeping. 

Orientation towards new markets is essential 

In a time when the paradigms are changing, when it's not just the USA supporting the 

world’s economy but especially Russia, China and India, orientation towards new 

markets is of essential importance. 

In order to serve its customers and be able to assist them in new markets with innovative 

products and services, a bank must especially have a high risk-bearing capacity. Raiff - 

eisenlandesbank Oberösterreich Aktiengesellschaft distinguishes itself through its high 

risk-bearing capacity and confidently controlled venture and cost management across 

the entire bank group. It was possible to reduce the cost/income ratio in 2007; by the end 

of the year, it was 46.5 percent in the group. 

The use of special financing models is becoming 

more and more important 

We are thus in a position to support customers aggressively with new financing 

instruments. For it is becoming more and more important to take advantage of modern 

financing instruments via special financing models such as corporate bonds, hybrid 

loans, mezzanine capital, direct shareholdings, silent shareholdings and the use of 

profit-sharing rights. Thus we contribute to the balance sheet optimisation of the 

companies we serve and we support their ability to compete. 

2

Contents 

General Information 

Foreword by Ludwig Scharinger, 

Chief Executive and Chairman of the Managing Board 2 

The Managing Board of Raiffeisenlandesbank 

Oberösterreich Aktiengesellschaft 4 

Foreword by Jakob Auer, 

Chairman of the Supervisory Board 6 

The Supervisory Board of Raiffeisenlandesbank 


The Highlights of 2007 8 

Raiffeisen Economic Forum 

and Economic Advisory Boards 10 

Customer Social Responsibility 14 

Overall Economic Environment 2007 16 

The Core Competencies of Raiffeisenlandesbank 


Segment Reporting 

Corporates & Retail – Customer Services 19 

Corporates & Retail – International Market 25 

Financial Markets 31 

Invest Banking 35 

Corporate Center 43

Financial Statements 2007 

Raiffeisenlandesbank Oberösterreich 

Aktiengesellschaft 47 

Management Report 2007 48 

Financial Statements 2007 56 

Notes to the Financial Statements 2007 62 

Audit Certificates 72 


Aktiengesellschaft Group 74 

Group Management Report 2007 74 

IFRS Consolidated Financial Statements 2007 80 

Income Statement 81 

Balance Sheet 82 

Development of Equity 83 

Cash Flow Statement 84 

Notes 85 

The Company 85 

Fundamentals of Group Accounting 

According to IFRS 85 

Accounting Policies 92 

Segment Reporting 97 

Notes to the Income Statement 99 

Notes to the Balance Sheet 106 

Risk Report 125 

Other Information 136 

Information based on Austrian 

Accounting Practices 142 

Events after the Balance Sheet Date 144 

Members of the Board of Raiffeisenlandes- 

bank Oberösterreich Aktiengesellschaft 144 

Audit Certificates 146 

Statement of the Managing Board 150 

Report of the Supervisory Board 151 

Raiffeisen Banking Group Upper Austria 152 

Income Statement 153 

Balance Sheet 154 

Notes 155 

Imprint 156

Worldwide network expanded further 

The successful Austrian export business makes a significant contribution to the country’s 

eco nomic growth. For the first time in 2007, Austria exported more than it imported. 

Raiffeisen Oberösterreich works with 80 percent of the Upper Austrian industrial companies 

which spearhead export trade and with one in two small and medium-sized 

companies. These strong companies can rely on the tight, worldwide network of 

Raiffeisenlandesbank Oberösterreich, which consists of high-performance cooperation 

partner and correspondent banks. In 2007, this network was extended further to 

include 1,621 correspondent and 16 cooperation partner banks. Stable connections 

exist to all continents, especially to Eastern Europe, China and India. 

Top expertise of the employees 

All success depends on people. Outstanding employees are therefore our most important 

asset. The greatest expertise is guaranteed by our training system, which 

was recognised with the European E-Learning Award and which we will expand into 

a multimedia system in 2008. 

Amazing growth achieved with customers 

In Raiffeisenlandesbank Oberösterreich the principle applies: everything we do must 

serve our customers, must be traceable and verifiable, and must motivate our employees 

over and over. With this strategic goal, we achieved a notable result, namely 

amazing growth with our customers; we were successful and we set a lasting course 

for the future of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft. 

Ludwig Scharinger 

Chief Executive and Chairman of the Managing Board 

of Raiffeisenlandesbank Oberösterreich 

Aktiengesellschaft 


"Everything we do must 

serve our customers, 

must be traceable and 

verifiable." 

3 

General Information

The Managing Board of 

Raiffeisenlandesbank Oberösterreich Aktiengesellschaft 

4 


Ludwig Scharinger (front) 

Deputy Chairman of the Managing Board 

Hans Schilcher (2 nd row, left) 

Members of the Managing Board 

Helmut Schützeneder (3 rd row, centre) Michaela Keplinger-Mitterlehner (2 nd row, right) 

Georg Starzer (3 rd row, left) Markus Vockenhuber (3 rd row, right) 

Annual Report 07

General Information

Designing the Future Instead of Awaiting it 

Jakob Auer 

Chairman of the Supervisory Board 

6 

Raiffeisenlandesbank Oberösterreich is a pacesetter and motor 

Raiffeisenlandesbank Oberösterreich Aktiengesellschaft is a significant designing 

force. In many areas, it has formed trends and set them in motion, a pioneer with its 

intensive relationship to its customers and the most modern financing models. 

Successful cooperation 

The economic benchmark data in the balance sheet for 2007 reflects the successful 

strategic future orientation towards customers’ needs and the targeted implementation. 

It is also a reflection of the successful cooperation of the Raiffeisen Banking Group Upper 

Austria: with the Raiffeisen banks on location and Raiffeisenlandesbank Ober österreich 

Aktiengesellschaft as a special institute, customers can take advantage of a unique 

range from local support to global assistance. 

Customer relationships are the highest priority 

Pleasing results do not come about by themselves; they must be formulated daily 

with successful projects together with customers. Security, sustainability, far-sightedness, 

new ideas and mutual trust create the stable basis for this. Just as you manage 

a company by balancing both the numbers and the emotions, you must also balance 

a successful bank-customer relationship in the same manner. 

Employees are our greatest capital 

The expertise and quality advice provided by our managers and all employees communicate 

security, confidence and optimism. Thanks to our innovative training model, which 

was presented with the European E-Learning Award, our customers have the certainty that 

they will be advised and assisted brilliantly. We will now equip this E-learning system with 

multimedia training. 

I would like to extend my thanks in particular to the customers whose successful 

projects were attended to by Raiffeisenlandesbank Oberösterreich in the past year. 

Special thanks also to the members of the Managing Board and above all the Chairman, 

Ludwig Scharinger, the members of the Supervisory Board of Raiffeisenlandesbank 

Oberösterreich, the managers and all employees who are working with 

commitment for the satisfaction of our customers and the future of Upper Austria. 

Jakob Auer 



The Supervisory Board of 


Chairman 

Jakob Auer 

Deputy Chairmen 

Volkmar Angermeier 

Josef Grünwald 

Members* 

Rudolf Binder 

Annemarie Brunner 

Alois Buchberger 

Ernst Eder 

Karl Fröschl 

Helmut Grasl 

Hannes Herndl 

Christian Hofer 

Josef Kinzl 

Walter Lederhilger 

Walter Mayr 

Josef Natschläger 

Gottfried Pauzenberger 

Franz Penz 

Eduard Pesendorfer 

Kurt Pieslinger 

Franz Preinstorfer 

* registered and non-registered 


Ulrike Rabmer-Koller 

Angelika Sery-Froschauer 

Günther Stadlmayr 

Johann Stockinger 

Wolfgang Weidl 

Herbert Zaglmayr 

Staff Council Representatives 

Helmut Feilmair 

Gerald Stutz 

Dietmar Felber 

Josef Gokl 

Christoph Huber 

Konrad Jäger 

Elisabeth Mader 

Albert Ruhmer 

Hermann Schwarz 

Richard Seiser 

State Commissioners 

Josef Nickerl 

Regina Reitböck 

Honorary presidents 

Gerhard Ritzberger 

Helmut Angermeier 

7 

General Information

The Highlights of 2007 

Cooperation agreement 

with ICICI India 

Raiffeisenlandesbank Ober - 

österreich is continuously 

expanding its network with 

the most dynamic banks in 

the world. A cooperation 

agreement signed with ICICI 

Bank, one of the largest 

banks in India, in February 

opened up even more cus - 

tomer opportunities in 

the gigantic growth market 

of India. 

January 

February 

Customer reception 2007 

At its traditional customer 

reception at the beginning of 

the year, Raiffeisenbank Oberösterreich 

outlined its strategies 

and plans to customers. 

In January 2007, this most 

important economic reception 

in Upper Austria was attended 

by more than 2,400 guests from 

business, politics, science, 

culture and sport. 

Raiffeisenlandesbank Oberösterreich Aktiengesellschaft can look back on 

a successful 2007 in which much was achieved for our customers. We are 

in a position to recognise chances, calculate and limit risks, we can support 

and service customers worldwide, as they exploit new opportunities. The 

significant developments in 2007 reflect this dynamic development. 

March 

Moody’s raises 

rating to Aa3 

In April, the international 

rating agency Moody’s Financial 

Institute Group increased 

Raiffeisenlandesbank Oberösterreich’s 

rating from A1 to 

Aa3. The performance, po - 

sitioning and development of 

the bank was appreciated – 

proof of the stability, riskbearing 

capacity and innovativeness 

of one of Austria’s 

strongest regional banks. 

Launch of succession 

and industry funds 

April 


has placed particular 

importance on servicing small 

and medium-sized enterprises 

with a special succession fund 

which was allocated EUR 30 

million in its starting phase. 

This fund supports company 

handovers by providing equity. 

In addition, an industry fund 

was allocated EUR 150 million. 

This underlines Raiffeisenlandesbank 

Oberösterreich’s 

position as the most important 

partner for small and mediumsized 

enterprises and for 

industry. 

KEPLER-FONDS KAG 

on course for success 

KEPLER-FONDS KAG, the 

fund subsidiary of Raiffeisen - 

lan desbank Oberösterreich, 

increased the volume it 

managed in the first half of 

2007 to over EUR 8 billion – 

a sign of quality and cus - 

tomer confidence. The fund 

assessment agency, Lipper, 

crowned KEPLER the best investment 

company in Austria. 

May 

New Board Member 

June 

In June 2007, the Managing 

Board of Raiffeisenlandesbank 

Oberösterreich Aktiengesellschaft 

was extended 

to six members. Michaela 

Keplinger-Mitterlehner is responsible 

for Marketing/Sales, 

Retail Banking, Capital Market 

Sales and Securities Sales. 

8 Annual Report 07

July 

Local supply 

means quality of life 

The “Land lebt auf” (Rural 

Revival) project initiated by 


to secure local supply 

in communities in which the 

supply of daily essentials is no 

longer ensured, has been 

greeted with great interest in 

both Upper Austria and other 

provinces. In 2007, the third 

“Land lebt auf” local supplier 

was opened in Kirchheim im 

Innkreis after Rottenbach and 

Breitenaich. 

August 

Multifunctional building 

opened on Arenaplatz 

An important cornerstone for 

the Linz Capital of Culture 

year in 2009 was laid back in 

August 2007 with the opening 

of a new multifunctional build - 

ing on Linz’s Arenaplatz. As 

Austria's strongest regional 

bank, Raiffeisenlandesbank 

Oberösterreich’s task was to 

contribute to the implementation 

of important future projects, 

to secure added value 

and jobs and to increase the 

quality of life. 


September 

Customers benefit 

from networking 

In a highly specialised statistical 

procedure, the best networked 

Austrian managers were 

identified by FAS.research. 

For the second time, Ludwig 

Scharinger, Chief Executive 

and Chairman of the Managing 

Board of Raiffeisenlandesbank 

Ober -österreich, 

took the top position 

in this ranking. Above 

all, it is customers who benefit 

from the Raiffeisenlandesbank 

Oberösterreich network. 

October 

Commitment 

in Southern Russia 

It’s not only the 2014 Olympic 

Games in Sochi which will 

bring numerous opportunities 

for domestic companies in 

the southern Russian region 

of Krasnodar. Through cooperations 

with local banks, 


can also success - 

fully support corporate cus - 

tomers with their activities in 

southern Russia. 

November 

Successful projects 

With its real estate company, 


is also ensuring 

that local centres and districts 

are revitalised and developed. 

One exemplary project is the 

erection of the terminal tower 

in the Upper Austrian regional 

capital of Linz with an investment 

volume of EUR 55 million. 

This 24-storey office 

building will house inland 

revenue and customs offices 

as well as the Upper Austria 

pension insurance institute in 

2008. In November 2007, this 

project won the DIVA real 

estate award. 

Loan from KfW 

December 

In 2007, the German “Kreditanstalt 

für den Wiederaufbau” 

(Reconstruction Loan Corporation) 

approved a global loan 

to Raiffeisenlandesbank Oberösterreich. 

This ensured that 

over the next seven years an 

additional EUR 100 million would 

be made available to local small 

and medium-sized enterprises 

at favourable conditions. 

9 

General Information

Raiffeisen Economic Forum Upper Austria 

Chairman 

Christoph Leitl 

President of the Upper Austrian Chamber of 

Commerce, President of the European Chamber 

of Commerce (SME Union), President of the 

Österreichischer Wirtschaftsbund, Representative 

of the Oberösterreichischer Wirtschaftsbund, 

Chairman of the Global Chamber Platform 

Deputy Chairman 

Peter Oberndorfer 

Professor of Public Law at 

Johannes Kepler University Linz, Member 

of the Austrian Constitutional Court 

Members 

Manfred Asamer 

Member of the Board, Asamer Holding AG 

Axel Diekmann 

Managing Partner, 

Verlagsgruppe Passau GmbH 

Wolfgang Eder 

Chairman and Chief Executive, voestalpine AG 

Raiffeisen Economic Forum 

and Economic Advisory Boards 

In the field of globalisation, Raiffeisenlandesbank Oberösterreich sees itself as 

a modern investment bank in the broadest sense, bridging the gap between 

putting down regional roots and international customer servicing. The opening 

up of borders has given rise to many new possibilities and enormous opportunities 

worth exploiting. 

As Austria's strongest regional bank, Raiffeisenlandesbank Oberösterreich bears 

a special responsibility and is committed to innovative financing and, above all, 

to sustainability and value added. In order to be able to create new ideas for the 

future, new and innovative business fields are being developed in addition to 

core competencies. 

Alois Froschauer 

Chairman and Chief Executive, LINZ AG 

Johannes Hödlmayr MBA 

Chief Executive, Hödlmayr International AG 

Anette Klinger 

Chief Executive, IFN Beteiligungs GmbH, Chairwoman 

of the Supervisory Board, IFN Holding AG 

Josef Krenner 

Upper Austrian Finance Director 

Josef Peischer 

Director of the Upper Austrian 

Chamber of Labour 

Eduard Pesendorfer 

Director of the Regional Administrative Office, 

President of the Supervisory Board, Energie AG, 

Honorary Senator of the Johannes Kepler 

University Linz, Member of the Supervisory Board, 


Kurt Pieslinger 

Chairman of the Audit Committee of Raiffeisen - 

landesbank Oberösterreich, Member of the 

Supervisory Board of Raiffeisenlandesbank 

Oberösterreich, Consultant for the Confederation 

of Austrian Industry 


The dynamic developments around the globe have made international business 

relations and networks increasingly important for customers, and thus for Raiff - 

eisenlandesbank Oberösterreich. 

The Raiffeisen Economic Forum Upper Austria and the Economic Advisory Board 

of Raiffeisenlandesbank Oberösterreich in southern Germany and the Economic 

Advisory Board in Vienna unite personalities that have an important influence on 

the positive design of the future by contributing their innovative ideas to help 

create ambitious projects. These economic forums are workshops for ideas and 

hubs of innovation. They form creative platforms for constructive exchange and 

future-oriented actions. 

Michael Preymesser 


M. Preymesser GmbH & Co. KG, 

Haulage company, Regensburg 

Claus J. Raidl 

Chairman, 

BÖHLER-UDDEHOLM AG, Member of the 

Board of Management, voestalpine AG 

Hans Reisetbauer 

Honorary Regional Hunting Director 

Max Schachinger 


Schachinger Logistik GmbH 

Viktor Sigl 

Upper Austrian Secretary of Economics 

Günther Steinkellner 

Member of the Upper Austrian parliament, 

parliamentary party chairman 

Rudolf Strasser 

Emeritus Professor, Johannes Kepler 

University Linz, Honorary Chairman of the 

Supervisory Board, voestalpine AG, 

Chairman of the Supervisory Board of 

Neuson-Kramer Baumaschinen AG, 


Chairman of the Supervisory Board, Bauhütte 

Leitlwerke GesmbH, Chairman of the Supervisory 

Board of Sport Eybl and Sport Experts AG, Vice 

Chairman, Sport Eybl and Sport Experts GesmbH, 

Chairman of the Ludwig Eybl Privatstiftung, 

Honorary President of the Austrian Society for 

Labour and Social Law 

Rudolf Trauner 

President of the Upper Austrian 

Chamber of Commerce 

Verena Trenkwalder 

President of the Upper Austrian Chamber 

of Fiduciaries, Vice President of the Austrian 

Chamber of Fiduciaries 

Gerhard Wildmoser 

Attorney-at-law, President of the 

Society for National Economics 

Leopold Windtner 

Chief Executive and Chairman of the Board of 

Management, Energie AG Oberösterreich 

11 

General Information

Raiffeisenlandesbank Oberösterreich Economic Advisory Board in Southern Germany 

Elisabeth Bergschneider 

Vice President of the Federation of Self- 

Employed Persons - Deutscher Gewerbeverband, 

Landesverband Bayern e. V., 

Regensburg 

Alexander Brochier 


A. Brochier Holding GmbH & Co. KG, 

Nuremberg 

Dieter Daminger 

Town Councillor, Economic and 

Financial Secretary, Regensburg 

Axel Diekmann 


Verlagsgruppe Passau GmbH 

Stefan Durach 

Chief Executive, Develey Senf & 

Feinkost GmbH, Unterhaching 

Josef Eppeneder 

Land District Administrator for the 

Administrative District of Landshut 

Karlheinz Götz 

Chairman, Götz-Management- 

Holding AG, Regensburg 

Hedi Hartmann 

Auditor, tax consultant, Managing Partner, 

MHP Männer & Hartmann Treuhand GmbH 

and MHP Männer & Hartmann Revision 

GmbH, Regensburg 

Claus Hipp 

General Partner, 

Hipp Group, Pfaffenhofen 

Franz Xaver Hirtreiter 

Independent entrepreneur, newspaper 

publisher of “Oberösterreichische Rundschau” 

and proprietor of a chain of car dealerships 

in Poland 

Ingrid Hofmann 


I. K. Hofmann GmbH, Nuremberg, Member 

of the Presidium of the Association of German 

Employers (BDA), Vice President of the 

Federal Leasing Personnel Services 

Association (BZA) 

Michael Hönig 

Attorney-at-law, Munich 

Andreas Kroiß 

Chairman of the Board of Management, 

Hans Einhell AG, Landau a. d. Isar 

Philipp Graf von und zu Lerchenfeld 

Auditor, tax consultant, Member of the 

Bavarian Parliament, Regensburg 

Michael Love 

Trade Consul at the Austrian 

General Consulate in Munich 

Joachim Müller 

Honorary President of DOM – Deutsches 

Ostforum München e. V., Deputy Director 

of the Heinrich-Riemerschmid-Stiftung 

Munich, Honorary Chairman of the 

Sweeteners Association e. V., Cologne 

Michael Preymesser 

Managing Partner 

M. Preymesser GmbH & Co. KG, 

haulage company, Regensburg 


Raiffeisenlandesbank Oberösterreich Economic Advisory Board in Southern Germany (continued) 

Bernd Rödl 

Auditor, tax consultant, attorney-at-law, 

Managing Partner, Rödl & Partner, Nuremberg 

Franz Schimpel 

Chief Executive, EUKIA Wohn- und Industriebau 

Baubetreuungs GmbH, Regensburg 

Walter Schweitzer 

Rector of the University of Passau 

Hannes Androsch 

Industrialist, Deputy Chancellor, retd. 

Christine Domforth 

Editor of “Die Presse” 

Anna Maria Hochhauser 

General Secretary, Austrian Federal 

Chamber of Commerce 

Karin Keglevich 

Managing Partner, Special Public Affairs 

PR-Beratung und Lobbying GmbH 

Karl Korinek 

President of the Austrian 

Constitutional Court 

Alfred Umdasch 

Deputy Chairman of the Supervisory Board, 

Umdasch AG, Amstetten 

Hans Wilden 

Chief Executive, Hans Wilden 

Verwaltungs- und Beteiligungs GmbH 

Albert Zankl 

Mayor of Passau 

Raiffeisenlandesbank Oberösterreich Economic Advisory Board in Vienna 


Reinhold Mitterlehner 

Deputy General Secretary of the Austrian 

Federal Chamber of Commerce 

Kurt Rammerstorfer 

Head of Broadcasting, Austria Broadcasting 

Corporation (ORF), Tyrol 

Georg Springer 

Chief Executive, Bundestheater-Holding GmbH 

Anton Stanzel 

Head of Department, retd, Federal Ministry 

of Finance 

Rudolf Streicher 

Federal minister, retd, honorary professor 

13 

General Information

“It‘s not systems or 

administration or 

overregulation that we 

want to address…” 

Customer Social Responsibility 

Raiffeisenlandesbank Oberösterreich Aktiengesellschaft is very conscious of its 

special responsibility to the Province of Upper Austria and its inhabitants. It bears 

witness to this by the many ways it shows its commitment to the people, the en vironment, 

in the support it gives to maintaining the rural way of life, and to its employees. 

KEPLER-FONDS KAG as the standard bearer for sustainable investments 

Launching KEPLER Sustainability Aktienfonds, KEPLER Ethik Aktienfonds and 

KEPLER Ethik Rentenfonds, makes KEPLER-FONDS KAG Austria’s standard bearer 

for sustainable investments. These funds invest in securities issued by international 

companies that take account of sustainability as a criterion in the way they manage 

their business. The performance of the funds clearly demonstrates that investing on 

the basis of values need not mean sacrificing returns. 

EUR 50,000 to lighten the darkness 

Solidarity has always been a cornerstone at Raiffeisenlandesbank Oberösterreich. 

Before Christmas in 2007, Raiffeisenlandesbank Oberösterreich, together with all the 

Upper Austrian Raiffeisen banks, set up a special initiative for people who had got 

into trouble. For every savings passbook given to anyone in Upper Austria, the 

Raiffeisen Banking Group Upper Austria made a donation of five euros to the “Licht 

ins Dunkel” (Lighten our Darkness) charity. Chief Executive Ludwig Scharinger 

handed over donations totalling EUR 50,000 on the occasion of the ORF Christmas 

Gala. In addition, Raiffeisenlandesbank Oberösterreich donated a total of EUR 11,000 

to the Christmas charity campaigns run by the newspapers Neues Volksblatt, Oberösterreichische 

Nachrichten and Kronen Zeitung. 

Donating to the Red Cross 

For the last two years, Raiffeisenlandesbank Oberösterreich has been making an 

annual donation of EUR 20,000 to the Red Cross, especially for its work with young 

people. One of the projects this supports is the cycling proficiency test for schoolchildren 

in their fourth year at primary school; another is the so-called Helfi certificate, 

which involves young people in practical and theoretical exercises focussing on vitally 

important First Aid. 

Responsibility for rural areas 

Raiffeisenlandesbank Oberösterreich considers itself responsible for ensuring that all 

444 local authorities in Upper Austria are able to function. Raiffeisen Oberösterreich 

not only provides the finance needed locally through 446 banks but also supports the 

local authorities in carrying out their responsibilities. 

“Land lebt auf” (Rural Revival) – local supply concept 

Local supply has to function smoothly: this is an essential ingredient for quality of life. 

In order to improve the supply of daily essentials to people living in communities without 

food stores, Raiffeisenlandesbank Oberösterreich and the Pfeiffer Group have 


developed a new innovative local supply concept called “Land lebt auf” (Rural Revival). 

The current “Land lebt auf” suppliers in Rottenbach, Breitenaich and Kirchheim im 

Innkreis have been very warmly welcomed. 

Generating environmentally friendly energy 

In opening Austria’s largest biodiesel plant in the port of Ennshafen, Raiffeisenlandes - 

bank Oberösterreich has set new standards for rural value-added and environmen 

tally friendly energy. To supplement their strong position as producers of topquality 

foodstuffs, our rural businesses are seeing new opportunities as generators 

of energy. The rising demand for biodiesel and new varieties of rapeseed provide 

another interesting incentive. At the same time, this leads to an additional interesting 

field of research and development of new varieties. 

Raiffeisenlandesbank Oberösterreich sets new standards 

in initial and further training 

Satisfied and extremely well-trained employees are Raiffeisenlandesbank Ober - 

österreich’s most valuable capital. Trainee programmes, the Raiffeisenlandesbank 

Academy and an online learning platform that we developed in-house and that has 

received the European E-Learning Award provide the basis for lifelong learning. Raiff - 

eisenlandes bank Oberösterreich also acts on new ideas for training apprentices. 

After they have completed the first year of their apprenticeship, outstanding apprentices 

can start on the first term of the course leading up to their professional 

qualifications exam at the same time as they carry on with their regular apprentice - 

ship training. 

VITA – Health project for employees 

The welfare and health of our employees is the top priority at Raiffeisenlandesbank 

Oberösterreich. A large number of health-promoting measures are covered by the 

VITA health project. Besides free events providing information on healthcare, nutrition 

and stress management, since 2007 employees have also been offered water en - 

riched with natural electromagnetic oscillations. The weekly delivery of tasty apples 

is also intended to give additional support to healthy eating. In these days where 

protecting the climate is so important, we make sure that the fruit does not have far 

to travel – it is all grown and picked in Upper Austria under strict guidelines. 


summer kindergarten 

Raiffeisenlandesbank Oberösterreich rates family life very highly. To make the demands 

of family and career more compatible during the school holidays, there was 

a summer kindergarten for children of employees for the third time in 2007. This was 

so popular that, for the first time, we had two classes with a total of 47 children 

ranging in age between three and seven years old. We kept the opening hours of the 

summer kindergarten flexible, in line with Raiffeisenlandesbank Oberösterreich’s 

office hours. 


... but purely and 

simply people who 

have to structure things, 

act responsibly and be 

socially aware.” 

Chief Executive 


15 

General Information

The international 

financial crisis 

damaged confidence 

in Europe’s banks. 

The Economic Climate in 2007 

GENERAL ECONOMIC CONDITIONS IN 2007 

For the fourth year in succession, the global economy performed extremely dynamically 

in 2007. To an even greater extent than in previous years, this development was 

borne by strong growth in emerging markets, above all in China, India and Russia. 

The mortgage crisis that broke out in the middle of the year in the US, ultimately 

spread into a global banking crisis the end of which is still not in sight, brought about 

a drastic change in sentiment, at least on the financial markets. 

FINANCIAL CRISIS HITS THE REAL ECONOMY 

Initially there was a lot of hope that the crisis on the US housing market would soon 

be over. But increasingly more borrowers with increasingly poorer creditworthiness 

ceased to be able to meet their mortgage commitments. As many billions of dollars 

of poor-quality mortgages had been packaged into complex securities and sold to 

investors around the world, the huge losses not only brought about massive up - 

heavals on the stock exchanges but also a global mutual lack of confidence be tween 

banks. In the fourth quarter, the financial crisis in the US finally gripped the real 

economy with the first signs of its effects on employment and consumer demand. 

The US Federal Reserve acted as early as September with a cut in key lending rates 

of 50 basis points, which was then followed by two more of 25 basis points each. 

The economy in the eurozone last year was surprisingly robust. GDP growth in the 

eurozone averaged around 2.9 percent in 2007. This growth was driven by exports 

and capital expenditure while consumer demand, particularly in Germany, increased 

only slightly. In view of the very strong euro, Europe’s exports performed unexpectedly 

well. But, one after the other, Europe’s banks also announced in the second 

half of 2007 that they had substantial volumes of securities in their portfolios that 

were ultimately backed by US mortgages. Only hasty takeovers and declarations of 

liability prevented bank insolvencies – as a result of large write-downs on loans. 

This resulted in deals between banks coming to a virtual standstill, which is why the 

ECB felt forced to resort to tenders to provide the money market with a large amount 

of additional liquidity and to delay the interest rate hike planned for September. 

Money-market rates for periods of one month and more nevertheless leapt up. This 

brought Europe fully into the grip of the crisis of confidence in banks. 

With GDP growth of around 3.2 percent in 2007, Austria was well ahead of the Euro - 

pean average. Austria’s economy achieved high growth in its exports and again 

benefited from developments on the Eastern markets. 


The Core Competencies of 


Raiffeisenlandesbank Oberösterreich Aktiengesellschaft’s Customer Services do 

not just involve providing liquidity but financing opportunities and assisting cus - 

tomers with modern and creative financial services. This gives substantial support to 

entrepreneurial design, realisation of innovations and successful projects, as well as 

positioning quality products in markets at home and abroad. 

To achieve this, Raiffeisenlandesbank Oberösterreich has developed strong core 

competencies. The instruments in their armoury are constantly being adapted and 

supplemented to meet current and future conditions. This allows solutions and strate - 

gies to be implemented jointly with customers, which ultimately leads to lasting and 

shared success. 

Furthermore, the core competencies are reflected in the IFRS segment reporting on 

the balance sheet: 

Cooperative Group services 

Cooperative Group strategy and activities 

Marketing, distribution and product development 

Trust fund loans 

Human resource development 

IT developments and services 

International Market 

International Finance 

Correspondent Banking 

Southern Germany 

Czech Republic 


Customer Services 

Corporate customers 

Institutional key accounts 

Retail customers 

PRIVAT BANK AG der 


Product Competence 

Finance Trade Center 


Cash management 

Financial engineering 

Creative financing solutions, IT services 

Invest Banking 

Venture capital, partner capital 

Subsidiaries, holdings and IT services 

17 

General Information

Lentos Museum of Modern Art with Pöstlingberg in the background, Linz, Austria

Corporates & Retail – 

Customer Services 

Loyalty 

Leadership 

Liquidity 


Raiffeisenlandesbank Oberösterreich not only wants to fulfill expectations but 

even to surpass them; it not only wants to support its customers, but also to 

inspire them. A unique level of customer orientation, with competence, charm, 

emotion but packing a punch, leadership with regard to the development of new, 

targeted products and modern sales instruments are fundamental building blocks 

that distinguish us. 

19 

Segment Reporting

Erfolg ist Beratung 

plus Kompetenz 

Success equals advice plus 

competence 

Successful companies need financ - 

ing solutions that are full of ideas 

to complement their dynamic development. 

As Austria’s strongest 

regional bank, Raiffeisenlandesbank 

Oberösterreich accordingly 

supports its customers with mod - 

ern and extensive financial engi - 

n eering, which incorporates the har - 

monised interplay between various 

financial services. 

Corporates & Retail – Customer Services 

Corporate customers and groups 

Raiffeisenlandesbank Oberösterreich Aktiengesellschaft is firmly anchored in Upper 

Austria through the local Raiffeisen banks. This healthy and strong structure for Raiff eisen 

Oberösterreich ensures an enormous range in its Customer Services. The Raiffeisen 

banks maintain servicing locally while the specialist services provided by Raiffeisen - 

landesbank Oberösterreich allow the customers to be assisted at a global level. 

More than every other SME and 80 percent of industrial firms take advantage of this 

and work with Raiffeisen Oberösterreich. The Corporates and Retail segment comprises 

Raiffeisenlandesbank Oberösterreich’s business areas corporate customers, 

groups, SME support, major institutional customers, international finance and correspondent 

banking, as well as the retail business. 

Recognising opportunities, calculating and limiting risks and flexibility are Raiffeisen - 

landesbank Oberösterreich’s top priorities in the servicing of its corporate customers. 

Raiffeisenlandesbank Oberösterreich services its corporate customers with 

cash man agement solutions, factoring, real estate solutions, insurance, assisting 

companies through its global network with efficient cooperation partners and correspondent 

banks, as well as interest rate and currency hedging combined with 

optimal advice on subsidies. 

Financing opportunities 

In servicing and assisting corporate customers, it is not just a matter of providing 

financing solutions. Above all, we need to provide optimal finance and be on hand 

for the opportunities that the companies find on their markets at home and through - 

out the world. To this end, Raiffeisenlandesbank Oberösterreich has an enormous 

risk-bearing capacity. Its lasting and successful development enables Raiffeisenlandesbank 

Oberösterreich to invest equity in various shapes and sizes. It contributes 

to the optimisation of its customers’ balance sheets with special financing models, 

such as corporate bonds, hybrid bonds, mezzanine capital, direct investments, undis - 

closed investments, or by employing participatory capital. 

Subsidy service 

Raiffeisenlandesbank Oberösterreich not only provides modern financing models, 

but sees its task as giving optimal support in structuring the many different opportunities 

to obtain subsidies from the EU, the government, the province or from local 

authorities. Raiffeisen Oberösterreich submitted a total of 2,538 applications for 

subsidies in 2007. This represents an investment volume of EUR 558 million. 

EUR 37.2 million is the amount of subsidies from which customers of Raiffeisen 

Oberösterreich benefited. 


Major institutional customers 

Major institutional customers have recourse to a wide range of services at Raiff - 

eisenlandesbank Oberösterreich, with structured investments, special funds as tailormade 

investment models, cash pooling systems and tailor-made financing solutions. 

Close cooperation with Raiffeisenlandesbank Oberösterreich’s Finance Trade Center in 

liquidity management and investment round off the main areas of servicing. 

Raiffeisenlandesbank Oberösterreich has particular expertise in the field of project 

and special finance. In order to ensure that a project runs smoothly, experts not only 

make the corresponding individual financing concepts available but also provide 

support in implementing them. 

In realising significant projects for the future, public-private partnerships have also 

proved to be a formula for success. They ease the implementation of major projects. 

This generates additional added value and safeguards jobs. A total of 415 projects 

with a total investment volume of EUR 2.535 billion are currently under development 

or in operation. 

In addition, Raiffeisenlandesbank Oberösterreich meets individual cash management 

requests to optimise domestic and international payments. To achieve this, the experts 

at our subsidiaries, GRZ and RACON, are called in as IT and software service 

providers. 

SME support 

Austria’s economy has an excellent structure: above all, the broad base of efficient 

small and medium-sized enterprises ensures that the economy performs success - 

fully. These mature companies are significant innovators and ensure successful 

exports and an altogether high level of employment. 

With a succession service initiated by Raiffeisenlandesbank Oberösterreich, it helps 

to safeguard this strong backbone of the domestic economy. This is because the 

safe handover of these companies to the next generation presents a particular 

challenge. Research has shown that the succession issue is unresolved at 61 percent 

of companies. 

With its SME succession service, Raiffeisenlandesbank Oberösterreich provides 

optimal support by bringing into play a combination of various financing instruments – 

from a subsidy recipe through to venture and partner capital. To this end, we have 

launched a special succession fund with an initial volume of EUR 30 million. 


80 percent of industrial 

concerns in Upper 

Austria work with Raiff - 

eisen Oberösterreich. 

21 


20 branches in the 

greater Linz area 

ensure local supply 

of financial services. 

At Raiffeisenlandesbank Oberösterreich, customer orientation does not just mean 

flexibility and speed but, above all, an intense personal relationship. Major cornerstones 

of such relationships are discussions held with business owners. Here, we not only 

analyse with each company key figures based on extensive comparisons with others 

in the sector, which we compile and constantly update for 110 sectors of the economy, 

but also discuss what the future has to hold and opportunities for positioning. 

These discussions are dynamic and held as partners in business: the result is a comprehensive 

rating, which not only contains the key financial figures but also soft facts, 

such as the staff situation, market environment, degree of innovation, opportunities 

for development, etc. 

Retail business 

Raiffeisen Oberösterreich’s prime marketing principle is to help its customers maintain 

and, if possible, expand their financial leeway. Doing this depends on security, 

determination, success, reliability and trust. 

With 20 branches in the Linz and Traun area, Raiffeisenlandesbank Oberösterreich 

is an important local supplier of financial services to private customers and SMEs in 

Upper Austria’s capital. 

Looking after customers is the core feature. Our particular form of customer orienta - 

tion, involving competence, charm and emotion but packing a punch, aims not only to 

meet but to exceed expectations, not only to look after customers but to excite them. 

Leadership in developing new, targeted products and modern sales tools are signifi - 

cant building blocks distinguishing Raiffeisen’s Customer Services in Upper Austria. 

In addition, personal customer relationships are linked to the demands and desires 

for mobility. Customers can use our modern bank foyers or the ELBA Internet to trans - 

act their banking business simply, securely, easily and flexibly. 

The customer foyer of Raiffeisenlandesbank Oberösterreich with its self-service 

areas are amongst the most state-of-the-art and the most secure. And customers can 

access their safe-deposit boxes seven days a week between the hours of 5 a.m. and 

midnight. 


Cash management 

The latest payment solutions ensure that money can stay working longer in com - 

panies. With all the success Austrian companies are having abroad, the need is 

growing for up-to-date, globally compatible solutions. Accordingly Raiffeisen - 

landesbank Oberösterreich, together with the whole Raiffeisen banking group, offers 

its customers a gateway to the SEPA age (Single Euro Payments Area). This ensures 

a rapid – within a few hours – and economical processing of payments in all of the 

31 countries in the EU and EEA. 

With cross currency cash pooling, accounts can be pooled in various currencies 

without complicated settlement payments and calculations, group interest rates can 

be taken into account and interest optimisation can be achieved for the customers. 

Shadow interest calculations and taking current exchange rates into account obviate 

the need for currency conversions and related costs. This gives those responsible at 

companies for treasury and finance an optimal tool for managing liquidity, interest, 

foreign currencies and payments in one go. 

Innovative ideas for products and the technical resources of our subsidiaries GRZ 

und RACON as IT and software service providers allow individual wishes concerning 

domestic and international payments to be fulfilled with tailor-made solutions. 

By adding Giropay to its online products, Raiffeisenlandesbank Oberösterreich has 

set a new milestone in Austria. It is the first and the only bank in Austria to give its 

customers potential access to 17 million German online banking customers. Giropay 

is an add-on to the Austrian eps standard. 

Online security is very important to us: accordingly more than 40,000 customers are 

already in a position to take advantage of mobile TANs and SMS services. 

A host of different types of cards rounds off our competence in products, so that 

there is the right card for every customer and every area of use. 


Raiffeisenlandesbank 

Oberösterreich is the 

first bank in Austria to 

offer its customers 

access to German online 

banking customers. 

23 


Matrimandir (“Mother Earth”) in Auroville, India

active 

aspiring 

approachable 


Corporates & Retail – 

International Market 

With 1,621 correspondent banks and 16 partner banks, Raiffeisen - 

landesbank Oberösterreich provides a powerful global service 

network, which allows its customers to make optimal use of their international 

experience. Special desks ensure optimal connections, especially 

to the emerging/booming markets, such as Eastern Europe, 

India and China. 

25 


India? Your bank 

is already there. 


is the only Austrian bank to 

have a cooperation agreement with 

ICICI, India’s most dynamic bank. 

This enables it to provide optimal assistance 

to customers in this booming 

market and to offer services 

locally: from local financing transactions 

and help in setting up companies 

to special cash management 

solutions. 

Corporates & Retail – International Market 

Correspondent Banking 

Cross-border activities demand careful planning and comprehensive service. With 

1,621 correspondent banks and 16 partner banks, Raiffeisenlandesbank Oberösterreich’s 

customers have access to a powerful global service network to optimally 

process their export projects and international business. 

This new division has taken on the newly formed organisational unit Syndication & 

Asset Sales in addition to its classic correspondent banking business. The department 

acts as the central point of contact for all front office areas in matters of syndi - 

cations. It provides support by compiling and checking legal aspects of contracts, 

forming syndicates, structuring transactions and precisely monitoring the credit 

situation. This gives customers a single point of contact for structuring, processing 

and repayments, which ensures a high degree of efficiency. 

In addition, Raiffeisenlandesbank Oberösterreich’s continuously expanding network 

guarantees optimal usage of international experience and connections. Special desks 

ensure optimal connections to emerging/booming markets. This service simplifies and 

speeds up, for instance, the procedure for opening accounts. In addition, it arranges 

essential contacts with local customer advisers, arranges appointments and clarifies 

financing needs in advance with the network banks. 

Asia Desk: in China there is a comprehensive co-operation agreement with the 

Industrial and Commercial Bank of China (ICBC). A special cash management system 

gives corporate customers as much flexibility as possible for projects in the “Central 

Kingdom”. This enables companies to see and make transactions over accounts 

held by subsidiaries in China via ELBA. 

Raiffeisenlandesbank Oberösterreich is the only Austrian bank to have a co-operation 

agreement with ICICI, India’s most dynamic bank and can provide optimal assistance 

to companies in this booming market. This co-operation agreement covers all ser - 

vices – from local financing transactions and support in setting up companies to 

special cash management solutions – to be provided locally. The Eastern European 

Desk ensures a connection to the 18 markets in Central and Eastern Europe with 

more than 3,000 Raiffeisen bank branches and network banks with more than 57,000 

employees. This enables opportunities to be optimised that present themselves to 

Austrian and Central European customers in Russia, for instance in connection with 

the Olympic Games in Sochi. 

We already started to build up banking business in the Czech Republic in 1991 when 

the Iron Curtain fell. In the meantime, what is now Raiffeisenbank Prague has a 

banking network with 56 branches across the country. Raiffeisenbank Prague, in which 

Raiffeisenlandesbank Oberösterreich has a 25 percent stake via Raiffeisenbank Prag 


BeteiligungsgesmbH, had total assets as at 31 December 2007 of EUR 4.4 billion 

and 1,858 employees; it looks after 28,182 corporate and 186,088 private customers. 

Its main strategic focus, besides looking after Western corporate customers and 

financing real estate transactions, will be on building up local retail business, including 

via the Internet and mobile phones, and business with SMEs. The second Ober Österreich.Haus 

is due to be opened in the Old Town in Prague in the autumn of 2008. 

International Finance 

Austria has profited more from the opening of European borders and the multifarious 

opportunities offered by internationalisation than virtually any other country. Exports 

exceeded imports for the first time in 2007. 

It is important to be able to provide comprehensive assistance to companies, not 

only locally but, for their successful projects, around the globe. Raiffeisenlandesbank 

Oberösterreich gives them this scope: the local Raiffeisen banks and the global network 

of efficient partner and correspondent banks represent stable anchors for 

successful projects. Its close co-operation with strong and established commercial 

banks in all parts of the world enable Raiffeisenlandesbank Oberösterreich to keep 

the level of its service enormously high but its costs extremely low. 

With its International Finance division, Raiffeisenlandesbank Oberösterreich offers 

its customers comprehensive advice and covers the whole range of products for 

international business: 

■ Documentary business (import/export letters of credit, guarantees) 

■ Export finance (export fund procedures, Kontrollbank funding pool) 

■ Financing working capital locally via partner banks with guarantees provided by 

Raiffeisenlandesbank Oberösterreich; project finance when hedging risks, processing 

documentary transactions, and optimal financing of export transactions 

This makes Raiffeisenlandesbank Oberösterreich the most important partner for the 

international business of companies in Upper Austria; it expects more high growth 

in 2008 in Eastern Europe but also in China and India. Seven out of ten exporters in 

Upper Austria rely on assistance from Raiffeisenlandesbank Oberösterreich for the 

success of their international projects, making it the most important bank for exports 

in Upper Austria. Austria’s most powerful regional bank looks after and assists more 

than 4,850 exporters throughout the country. 

Over the last three years Raiffeisenlandesbank Oberösterreich’s business volume in 

export services has risen massively: it recorded average annual growth in its documentary 

business of 38.4 percent and as much as 50 percent in export letters of credit. 



Oberösterreich is the 

most important bank 

for exports in Upper 

Austria. 

27 


International Submarkets/Business Areas 

Branches/representative 

offices 

Correspondent 

banks 

Raiffeisen 

network banks 

Southern 

Germany market 

Czech 

Republic market 

Export and international 

financing 

Brussels 

Milan 

Paris 

New York 

Vilnius 

Hong Kong 

Number of correspondent banks: 1,621 Western Europe 800 Asia 312 

Eastern Europe 295 Africa 71 

America 131 Australia 12 

Raiffeisen banka d.d., Maribor** 

Raiffeisen Bank Zrt., Budapest* 

Tatra Banka, Bratislava* 

Raiffeisenbank Austria d.d., Zagreb* 

Raiffeisen Bank d.d. Bosna i Hercegovina, Sarajevo** 

Raiffeisen Banka a.d., Belgrade** 

RZB Beijing Branch, Beijing** 

RZB Xiamen Branch** 

Raiffeisen Bank Sh. A., Tirana** 

JSPP Raiffeisen Bank Aval, Kiev** 

Private Banking 

SMEs 

Industrial companies and groups 

Project development/finance 

Venture and partner capital 

Factoring 

Leasing 

Real estate 

Travel agency 

Gastronomy 

Assisting corporate customers 

Project development/finance 

Leasing 

Insurance 

Private Banking 

Travel agency 

Real estate 

Staff recruitment 

M&A advice, subsidies 

Factoring 

Raiffeisenbank a.s., Prague and eBanka-Spezialbank 

for SMEs and private customers – with a total of 101 

branches and a strong presence on the Internet 

Seoul Ho-Chi-Minh City Chisinǎu 

Mumbai Tehran 

Raiffeisen Bank Polska S.A., Warsaw** 

Raiffeisenbank (Bulgaria) E.A.D., Sofia** 

ZAO Raiffeisenbank, Moscow** 

Priorbank JSC, Minsk** 

Raiffeisen Bank Kosovo JSC, Pris˘tina** 

Raiffeisen Bank S.A., Bucharest** 

RZB Finance LLC, New York** 

Raiffeisen Malta Bank plc, Sliema** 

RZB London Branch** 

RZB Singapore Branch** 

Ober.Österreich.Haus, Munich, branches in 

Heilbronn, Landshut, Nuremberg, Passau, 

Regensburg, Ulm, Würzburg 

PRIVAT BANK AG der Raiffeisenlandesbank 

Oberösterreich 

activ factoring AG 

Invest Unternehmensbeteiligungs AG 

Real-Treuhand Immobilien Bayern GmbH 

Raiffeisen-IMPULS-Leasing GmbH & Co KG 

Raiffeisen-IMPULS-Finance & Lease GmbH 

CAR-ASS-Impuls Leasing GmbH & Co. KG 

CAR-ASS-Impuls Autovermietung GmbH 

Optimundus Reisebüro Passau 

GO Gaststättenbetriebs GmbH 

Ober.Österreich.Haus Prag 

ACG Prague, Budweis (Mergers & Acquisitions, 

EU-Förderungsberatung, Steuerberatung, 

Buchhaltung) 

IMPULS-Leasing-AUSTRIA s.r.o. – 

Prague, Budweis, Brno, 

Raiffeisen Versicherungsmakler – 

Prague, Budweis, Pilsen, Brno 

PRIVAT BANK AG der Raiffeisenlandesbank 

Oberösterreich, Prague branch 

BTU travel agency – Prague 

Real-Treuhand Reality a.s. – 

Prague, Budweis, Pilsen, Brno 

active factoring AG – Prague 

Focal points: Eastern Europe South-East Asia 

Far East Middle East 

* Minority shareholding ** Indirect shareholding in Raiffeisen Zentralbank Österreich AG 


Correspondent Banks 

Number of correspondent banks around the world 

131 


800 

71 

295 

Western Europe 800 

Eastern Europe 295 

America 131 

Asia 312 

Africa 71 

Australia 12 

GLOBALLY 1,621 

312 

12 

29 


Skyline of Shanghai with characteristic Oriental Pearl Tower, China

direct 

dynamic 

differentiating 


Financial Markets 

Global trade has more than doubled since the turn of the century. The 

fact that Austria has registered the highest growth in exports throughout 

Europe is proof of the success of its companies in international business. 

Raiffeisenlandesbank Oberösterreich contributes substantially to 

this success with its opportunity-oriented foreign currency management 

and risk-optimised option strategies. 

31 


Erfolg braucht 

Menschen, die 

Chancen erkennen 

Success requires 

people who 

recognise opportunities 

Stable networks and competent 

guides are the basis for success in 

business. Raiffeisenlandesbank Ober - 

österreich takes responsibility for its 

customers and supports them in 

hedging risks and taking advantage 

of opportunities – around the world. 


With ongoing globalisation, the role of treasury is becoming increasingly important. 

Under Raiffeisenlandesbank Oberösterreich Aktiengesellschaft´s organisational 

structure, specialists from treasury, money, foreign exchange, bond and 

equity dealing are all united in its Finance Trade Center. This gives it clear and stream - 

lined structures for both short and long-term management of interest rates, currencies 

and liquidity. All business involving taking advantage of market or valuation 

differences is covered by the Financial Markets segment. It also covers all business 

related to managing existing market risks, hedging liquidity and sales of securities. 

Individual strategies 

Capital is a major strategic resource and accordingly to be used carefully and after 

due consideration by banks and companies. The movements in rates on foreign 

exchange and credit markets in 2007 clearly demonstrated how important it is to 

have a robust risk strategy. 

Returns, creditworthiness, liquidity, diversification and transparency represent the 

criteria for decision-making in the investment business. In its exchange rate hedging 

transactions, Raiffeisenlandesbank Oberösterreich’s Treasury sets particular store in 

recognising, spreading and limiting risks. In interest management, the interest po - 

sitioning is established in accordance with customers’ respective risk-bearing capacity 

and in line with the yield curve and the expectation for interest rates. 

Risk management for customers 

Global trade has more than doubled since the turn of the century. In terms of export 

growth, Austria is European champion. Successful international business requires effi 

cient risk management and the targeted use of exchange rate hedging instruments. 

Raiffeisenlandesbank Oberösterreich's opportunity-oriented exchange rate manage - 

ment has proved most effective for its customers. Options and option strategies are 

also employed as flexible tools for exchange rate hedging. Depending on the market 

situation and clearly focussing on customers’ needs, advantage is taken of all kinds 

of opportunities to optimise exchange rate risk. Priority is given to hedging structures 

that do not involve net costs. The foreign exchange trading platform (Retra fx) allows 

customers and the Raiffeisen banks in Upper Austria to structure their purchases 

and sales of currencies at real-time prices. It ensures speedy, secure and simple 

IT-based processing of transactions. 


Long-term liquidity hedging with matching maturity refinancing 

In its asset/liability management, Raiffeisenlandesbank Oberösterreich attaches 

major importance to matching maturity refinancing. 

In 2007, we raised a total of EUR 1,940 million through our own issues, borrower’s 

notes and long-term deposits: 

■ Retail issues: EUR 1,063 million 

■ Structured issues: EUR 1,063 million 

■ Borrower's notes: EUR 167 million 

■ Other long-term means of refinancing: EUR 320 million 

New Moody’s issuer rating 

Since 2001, Raiffeisenlandesbank Oberösterreich is rated annually by Moody's 

Financial Institute Group. Since 2006, there has been a special issuer rating for longterm 

bond issues. This rating was fixed at “Aa3”. 

Securities Sales 

The service provided by the Raiffeisen banks sales unit enables the 102 Raiffeisen 

banks in Upper Austria and Raiffeisenlandesbank Oberösterreich’s branches to 

provide their customers with a state-of-the-art securities service. Despite a difficult 

capital market environment, we raised the customer deposit volumes throughout the 

Raiffeisen Banking Group Upper Austria by 8.53 percent in 2007. 

www.boerse-live.at gives Raiffeisen Oberösterreich customers a state-of-the-art 

online portal. Regardless of time or location, they can execute securities transactions 

speedily and securely. This instrument offers a direct link to the world's most 

important stock markets in real time, as well as comprehensive information concerning 

investment possibilities. 

Around 60 percent of all share sales at Raiffeisen Oberösterreich are now executed 

online. 2007 was a very good year with more than 60 percent growth in the volume 

of sales and orders issued. 


Moody’s confirms the 

high level of creative 

strength at Raiffeisen - 

landesbank Oberösterreich. 

33 


View of the Mühlviertel region, Upper Austria


balanced 

believable 

boundless 


Raiffeisenlandesbank Oberösterreich relies on quick action when it comes 

to supporting companies in their implementation of new projects and 

ideas. With venture and partner capital, Private Public Partnership models 

and the development of follow-up solutions, the strongest regional bank 

in Austria is greatly contributing to making the economic region of Upper 

Austria stronger and even more attractive. 

35 


lhr Wegbegleiter 

zum Erfolg 

Assisting you on your path 

to success 

Dynamic companies require modern 

financing. Raiffeisenlandesbank Ober - 

österreich Aktiengesellschaft therefore 

provides equity in the form of 

venture and partner capital through 

INVEST Unternehmensbeteiligungs 

AG (INVEST AG). 


For years, Raiffeisenlandesbank Oberösterreich Aktiengesellschaft has distinguished 

itself in areas beyond the core banking business. In dynamic times with many oppor - 

tunities, investments can be financed with more than just loans. In fact, equity-like 

tools can also be utilised in various ways. Raiffeisenlandes bank Oberösterreich 

Aktiengesellschaft has already provided more than EUR 1,500 million of this kind of 

venture capital. 

The investment banking segment comprises the following portfolios: 

■ Banking and financial institutions; 

■ Venture and partner capital for growing companies or companies going through 

succession changes as well as the investment in companies that are particularly 

interesting due to their location; 

■ Outsourced companies whose focus is not directly in the area of traditional bank 

services, and 

■ Real estate/PPP investments. 

Raiffeisenlandesbank Oberösterreich has assumed responsibility for branches of 

voestalpine AG and Salinen Austria AG, for example. At voestalpine AG, Raiffeisen - 

landesbank Oberösterreich Invest GmbH & Co OG is the largest private shareholder 

with a direct share of 14.12 percent of the stock as of the end of 2007. 

In addition, four private trusts are financed by Raiffeisenlandesbank Oberösterreich 

and shares in important companies are held by these foundations: 

■ Private trust foundation of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft 

■ Private trust foundation for the maintenance of the Upper Austria location (VIVATIS, 

efko) 

■ Private trust foundation for the future security of companies in Upper Austria 

(INVEST Unternehmensbeteiligungs AG) 

■ Private trust foundation for the promotion of international cooperation (VIVATIS CEE 

Holding GmbH) 

Raiffeisenlandesbank Oberösterreich has provided equity to 498 companies in the 

context of its investment banking activities, 160 of which are subsidiaries and 144 of 

which are companies in private trusts. 


Strategic investments in financial institutes 

This segment includes the bank and insurance investments of Raiffeisenlandesbank 

Oberösterreich. The market position of Raiffeisenlandesbank Oberösterreich is signifi - 

cantly strengthened by these strategic investments in financial institutes as well as 

in national and foreign banks. It can therefore assist and support its customers comprehensively 

in existing and new markets. 

The most important bank investments: 

■ PRIVATE BANK AG der Raiffeisenlandesbank Oberösterreich 

■ Oberösterreichische Landesbank AG 

■ Salzburger Landes-Hypothekenbank AG 

■ Raiffeisen Zentralbank Österreich AG 

■ Raiffeisen Wohnbaubank AG 

■ Raiffeisen Bausparkasse GesmbH 

■ Raiffeisenbank a.s., Prague 

■ Raiffeisenbank Austria d.d., Zagreb 

■ Raiffeisen Bank Zrt., Budapest 

■ Center Invest Bank AG 

■ KEPLER-FONDS KAG 

PRIVAT BANK AG 

PRIVAT BANK AG der Raiffeisenlandesbank Oberösterreich has locations in Linz, 

Vienna, Prague, Munich, Passau, Regensburg, Ulm, and Würzburg. 

The focus of PRIVAT BANK AG is on customers who have a special desire for dis - 

cretion and support and who place a particularly high value on individuality and ex - 

clusivity. To assist its customers, PRIVAT BANK AG utilises the entire assessment 

spectrum, including the development of individual special funds that are tailored 

towards personal parameters. 

One essential special service consists of the financial planning done by PRIVAT BANK AG, 

which serves to analyse and optimise all assets. Here efficient strategies of modern 

business planning are utilised even in the private sector in order to safeguard the 

liquidity, security, provisions, and assets in a sustainable manner. 

PRIVAT BANK AG was able to increase its business volume during 2007 within the 

group including bankdirekt.at AG by 24 percent to around EUR 3.85 billion. This 

means almost double the results compared to 2005. As in the years before, this 

clearly exceeded the market growth in Austria. The balance sheet total grew by 

22.6 percent to EUR 1.056 billion. 


PRIVAT BANK AG 

increased its 

business volume 

to EUR 3.5 billion. 

37 


Despite the difficult 

environment, the HYPO 

banks were able to 

achieve a good result. 

HYPO Salzburg 

HYPO Salzburg has continued its consistent upward trend of the last years and was 

able to achieve the planned goals for its customer business in the past financial year. 

The consistent, strategy-inherent customer orientation as well as the clear focus on 

the target groups with attractive products are reflected in the 2007 annual results 

just as much as the responsible handling of costs and risks. 

The continuity of the business development of HYPO Salzburg is expressed by the 

development of the balance sheet total, which was increased by EUR 271.5 million 

or 6.14 percent to EUR 4,690.8 million in an annual comparison. 

As of 31 December 31, HYPO Salzburg was managing 24 branches in the province 

of Salzburg. Of these, thirteen locations are in the central Salzburg area and eleven 

in the province of Salzburg. 

The credit business with companies and public funds was significantly expanded in 

recent years. Due to the strategic partnership with Raiffeisenlandesbank Oberösterreich, 

HYPO Salzburg is in a position to offer high-performance solutions for businesses 

ranging from small trade operations to industrial companies – always with the 

goal of helping the customer realise business opportunities through the appropriate 

financial latitude. 

Thanks to customised financing solutions, HYPO Salzburg is a reliable and flexible 

partner in the private credit business. About three quarters of all private financings 

are used for construction and housing. 

In the securities business, the customer account volume was increased despite the 

high level of volatility on the stock markets and the sinking prices on the European 

bond markets. 

HYPO Oberösterreich achieves a double-digit growth 

in its balance sheet total 

The consistent market and customer orientation of HYPO Oberösterreich has also led 

to pleasant increases in its strategic business areas in 2007. Above-average gains 

could be achieved in primary deposits and issues as well as in lending. The balance 

sheet total increased by 18 percent to around EUR 8 billion compared to 2006 and 

has therefore doubled since the financial year 2000. 

The market position was expanded or maintained in all defined target groups – doctors 

and independent contractors, major housing construction, public institutions, church 


and community affairs, private customers. The loan volume grew by nearly 10 percent 

to EUR 4.3 billion across all areas. Despite the above-average increase, the 

bank’s credit risk remains on a very low level. It was also pleasant that the earnings 

from the service business showed a higher growth (a gain of 7 percent), just as in the 

previous years. 

This demonstrates that HYPO Oberösterreich is able to assert itself extremely well 

on the market, even under more difficult general conditions, such as the international 

crisis of the financial markets or the inverse interest rate situation. The annual sur plus 

will amount to EUR 24 million in 2007 before taxes. 


For the Austrian fund industry, 2007 was disappointing compared to the boom years 

just before. The total volume of the 24 capital investment companies dropped by 

EUR 3.6 billion to EUR 163.8 billion (- 2.15 percent) as of the end of 2007. 

KEPLER-FONDS KAG, the fund subsidiary of Raiffeisenlandesbank Oberösterreich, 

was able to stand its ground nicely in the difficult markets and continued to increase 

its fund volume throughout the year 2007. At the end of 2007 a volume of EUR 7.9 

billion was managed, which is equivalent to a growth rate of 2.3 percent in 2007. 

KEPLER ranked in fifth place among the total of 24 Austrian capital investment companies. 

KEPLER achieved its growth rate in 2007 primarily by successfully issuing 

innovative products. Investor funds in the amount of about EUR 127 million flowed 

into newly created funds (e.g. KEPLER Top Cash Exclusive Fund, KEPLER Alpha 

Return Fund, KEPLER Optima Pension Fund, KEPLER East European Plus Pension 

Fund, and KEPLER Private Equity Stock Fund). Guaranteed value products also 

proved to be reliable. 

Analogous to the total market, almost no yield gains could be achieved in the stock 

and pension funds in 2007. However, the long-term performance results p.a. over a 

period of five years were quite attractive as of the date of 12 December 2007 (KEPLER 

Ethical Stock Fund + 11.80 percent, KEPLER Europe Stock Funds + 11.29 percent, 

KEPLER Global Stock Funds + 9.05 percent, KEPLER Emerging Markets Pension 

Funds + 9.86 percent, KEPLER High Yield Corporate Stock Funds + 7.16 percent). 

The quality of the fund management was confirmed by reputable rating agencies 

in 2007. On a national level, KEPLER was awarded the “Austrian Fund Award” 

by Morningstar and achieved 1st place in the “Lipper Fund Awards”. The fund 

subsidiary of Raiffeisenlandesbank Oberösterreich also established itself as one 

of the top contenders in Germany by occupying 2nd place for the “German Fund 

Award". 


Numerous awards 

confirm the high 

quality standard of 

KEPLER-FONDS KAG. 

39 


Raiffeisen-IMPULS- 

Leasing Group 

achieved a strong 

growth in 2007 

as well. 

Raiffeisen-IMPULS-Leasing 

With a market share of over 20 percent, Raiffeisen-IMPULS-Leasing was able to 

further expand its position as Upper Austria’s leader in the leasing market for 2007 

as well. A volume of new acquisitions that was over EUR 700 million for the first time 

means a 16 percent increase compared to 2006. At the end of 2007, Raiffeisen- 

IMPULS-Leasing had holdings of almost 39,000 leasing agreements with purchas - 

ing costs valued at over EUR 2.9 billion. 

■ A gain of 20 percent was registered for vehicle leasing in 2007. As a supplement 

to traditional vehicle leasing, Raiffeisen-IMPULS-Leasing also offers additional 

services, such as fleet management and full-service leasing. 

■ In the area of product leasing, the volume of new acquisitions in 2007 was increased 

by 11 percent. 

■ The real estate sector registered a growth of 18 percent. 

The entire leasing group of Raiffeisenlandesbank Oberösterreich is represented in 

Central and Eastern Europe with a comprehensive network of subsidiaries and was 

able to achieve a growth of 50 percent in 2007. 

activ factoring AG 

Through its subsidiary, activ factoring AG, Raiffeisenlandesbank Oberösterreich offers 

another modern and future-oriented form of financing. It hereby sets new benchmarks 

in supportive company financing and corresponds to the increasing demand 

for factoring services. activ factoring AG is not only successful in its traditional 

markets in Austria, Southern Germany and the Czech Republic, it actually purchases 

receivables around the world. 

The combination of pre-financing and taking on the complete risk of bad debts, combined 

with active debtor management, provides companies with a flexible financing 

and services instrument. 

In 2007, factoring sales rose to EUR 1.2 billion. 

Real-Treuhand Management GmbH 

From the revitalisation of town centres to urban planning, from terraced houses to 

multifunctional office towers, Real-Treuhand develops and realises real estate projects 

according to individual requirements. Choosing the right location, cost-efficient 

realisation, top construction quality and optimal maintenance costs is an absolute 

necessity and results in sustainably secure and profitable investments. 

The following companies reinforce the competence, quality and security offered by 

Real-Treuhand Management GmbH: 


■ Oberösterreichische Bauland Entwicklungsfonds GmbH 

■ Real-Treuhand Bau- und Projektmanagement GmbH 

■ Real-Treuhand Facility Management GmbH 

■ Real-Treuhand Immobilien Vertriebs GmbH 

■ Real-Treuhand Projekt- und Bauträger GmbH 

■ Real-Treuhand Regionalimmobilien GmbH 

■ Real-Treuhand Portfolio Management GmbH 

■ Real-Treuhand Immobilien Bayern GmbH (Southern Germany) 

■ Real-Treuhand Reality a.s. (Czech Republic) 

■ Real-Treuhand Croatia d.o.o. (Croatia) 

■ RLV Immobilien GmbH 

WAG 

WAG was acquired in 2004 in the context of a privatisation. The company has nonprofit 

origins and is the largest real estate company in Upper Austria. 

The capital assets consist of about 22,500 rental apartments and 65,000 square meters 

of rented industrial space, of which more than half are located in Linz. The other properties 

are distributed in four provinces (Upper Austria, Lower Austria, Styria and Salzburg). 

Overall, WAG manages 34,000 units, the revenue amounts to EUR 94 million, and the 

investments reached EUR 44 million in the financial year. 

GRZ IT Center 

With a total of about 580 employees, GRZ IT Group is one of the largest and most 

successful IT service providers in Austria. 

The product and service spectrum of GRZ IT Group goes far beyond the area of finance. 

It covers everything from operating mainframes, servers and networks of all kinds to 

application service provision, all the way to the development of customised IT solutions. 

The GRZ IT Center not only services the Raiffeisen Banking Group Upper Austria 

and Tyrol, the mortgage banks in Upper Austria and Salzburg also draw on complete 

solutions by GRZ. In addition, the GRZ IT Center also provides special laboratory 

information systems for hospitals as well as complete solutions for municipalities 

and community organisations. 

RACON Software GmbH is Austria’s market leader in the development of banking 

software, such as for example the entire ELBA product family, the comprehensive 

payment transaction/cash management systems and the electronic distribution 

information system ELVIS. 

LOGIS IT Service GmbH was founded in 2003 as a GRZ/RACON spinoff and as a 

joint venture with the Raiffeisen computer centre in Tyrol. LOGIS is also responsible 

for the highly complex automatic software delivery and for PCs and servers outside 

the computer centre. 


GRZ IT Group is one of 

the largest and most 

successful IT service 

providers in Austria. 

41 


Olympia Centre in Munich, Germany

strong 

safe 

service oriented 


Corporate Center 

Raiffeisen Oberösterreich is a strong partner for nearly 900,000 

customers – through networked activities and a contemporary, 

modern structure, the association has succeeded in achieving 

a balance between local roots and global support. It is active 

wherever Raiffeisen banks require support, in order to be able to 

accompany their customers with all of their projects in the best 

possible manner. 

43 


Zwei Partner 

für lhren Erfolg 

Two partners for your success 

Together with its customers, the asso 

ciation of Upper Austrian Raiffeisen 

banks with Raiffeisenlandesbank 

Oberösterreich contributes to 

the success of the province, as a 

strong association. This can be seen 

in the forward-looking projects, such 

as “rural revival”, town centre revitalisations 

or district developments. 


Consolidation items relating to more than one segment, as well as income and 

expenses that cannot be appropriately allocated to any other segment, are shown 

under the Corporate Center segment. In this segment, one-time special effects are 

also recorded which would otherwise distort the results of other segments. 

The divisions included in the Corporate Center help present a clear segment structure, 

as the results from the other business fields can be illustrated in a well laid-out 

and clear manner. 

In addition, cooperative Group services provided to the Raiffeisen Banking Group 

Upper Austria by Raiffeisenlandesbank Oberösterreich are represented in the Corpo - 

rate Center. 

Associative activities mean success 

For just under 900,000 customers, Raiffeisen Oberösterreich is the most important 

supplier of local banking services. Raiffeisen Oberösterreich’s strong and healthy 

structure facilitates a special customer orientation and dynamic support through 

creative financial services. Above all, Raiffeisenlandesbank Oberösterreich’s solidity 

and success derive from its principles of subsidiarity and solidarity. 

The Raiffeisen Banking Group Upper Austria is a strong association. It is not only in 

a position to jointly cover all banking sectors, but also to set new benchmarks in 

banking and business. As owners of Raiffeisenlandesbank Oberösterreich Aktien - 

gesellschaft, the Upper Austrian Raiffeisen banks exercise their ownership right over 

the Raiffeisen landesbank cooperative association. The cooperative spirit is decisive 

with this: regardless of its size, each cooperative has a vote. With this, Raiffeisen 

Oberösterreich relies on the subsidiarity principle: whatever the Raiffeisen banks are 

able to provide locally shall not be taken over by the superordinated association. As 

a corporation, Raiffeisenlandesbank Oberösterreich undertakes global functions, but 

also regards itself as an integrative hub within the Raiffeisen association. It supports 

and advises Raiffeisen banks and looks after corresponding training and development, 

as well as the advanced training of managing directors and management staff 

of Raiffeisen banks. 

Bundling of forces 

The Raiffeisen Banking Group Upper Austria bundles its forces. This focus on require 

ments and needs of the customers is unique. We achieve a balance between local 

roots and global support for our customers. These networked activities are possible 

due to the contemporary and modern structure of Raiffeisen Oberösterreich. The 

association becomes active wherever Raiffeisen banks require support, in order to 

be able to accompany their customers with all of their projects in the best possible 

manner. Through this, the regional strength and direct customer relationship are maintained. 

In addition, the cooperation in the association ensures security, power and 

dynamics of Raiffeisen in Upper Austria. 


Slected members of the Raiffeisen Banking Group Upper Austria 

■ Raiffeisen Kundengarantiefonds OÖ 

The security of savings deposits is the top priority of Raiffeisen Banking Group 

Upper Austria. Through the Upper Austria Raiffeisen Customer Guarantee Fund, 

customer deposits with Raiffeisen Oberösterreich are 100 percent secured, far 

beyond the legal deposit insurance. 

■ Raiffeisen-Kredit-Garantieges.m.b.H 

For standardised risk management in the entire Raiffeisen Banking Group Upper Austria, 

through assistance by assuming guarantees, sureties and other indemnities for 

loans, if the individual Raiffeisen bank is not able to provide this itself. 

■ Upper Austrian Raiffeisen Solidarity Association 

Sector institution for supporting co-owners who are in difficulties through no fault of 

their own. 

■ Benevolent Society for Upper Austrian Raiffeisen Banks 

Cooperative institution for the provision of capital and underwriting of shares. 

■ Upper Austrian Marketing Association 

The budgetary assurance of the marketing plan and its implementation on the basis 

of resolutions by the Association and Marketing Committee are handled in the Upper 

Austrian Marketing Association. 

■ Spring and Autumn Campaign 

At the annual Spring and Autumn Campaign, the strategic focuses are explained, mark 

eting measures presented, targets defined and new developments described to employees 

and employee representatives of the Raiffeisen Banking Group Upper Austria. 

■ Trend-setting training system 

Qualified and motivated employees are an important factor for the success and future 

of the bank. Therefore, the Raiffeisen Banking Group Upper Austria relies on well-trained 

employees – as only excellently trained employees can enable the success of customers. 

For this, a completely new training and development system has been developed 

on an e-learning basis, which is unique in the banking sector. All electronic learning 

media and instructive documents (Web-based training, specific course content, scripts, 

etc.) are combined in the “raiffeisen@learning” interactive learning platform. The dis - 

tance learning platform has been developed by an internationally recognised company 

and tailored to the requirements of Raiffeisenbanken Group Oberösterreich. Knowl - 

edge checks are a significant component of all Web-based training courses accessible 

in “raiffeisen@learning” and are used for the specifically developed assessment model, 

“Certification of the advisors”. In cooperation with the Johannes Kepler University 

Linz and the LIMAK (Johannes Keppler University Business School), this online certi fi - 

cation has been formulated for various banking professions. The certification builds on 

the existing knowledge of the advisors and, through continuous updating of the content, 

enables the implementation of lifelong learning. The training system is constantly 

being developed and has already been successfully re-certified, after an initial certifi - 

cation. For “raiffeisen@learning”, Raiffeisenlandesbank Oberösterreich was presented 

with the European E-Learning Award. 570 customer advisors have already been certified. 

Furthermore, a dedicated Raiffeisenlandesbank Academy will ensure the future 

potential of excellent employees for the long term, by high-potential employ ees being 

specifically supported within the context of special training programmes. 


The certified e-learning 

system supports the 

continuous training 

and development of 

employees. 

45 


Tower 2000 and Bagration Bridge to Moscow City, Russia



Aktiengesellschaft 

efficient 

effective 

experienced 

Sustainability and responsibility are of the highest priority for the Raiff - 

eisenlandesbank Oberösterreich Aktiengesellschaft. It only operates 

within business fields in which it possesses the necessary expertise to 

assess and evaluate all risks. This high awareness of its responsibility 

ensures the long-term success of the company – and thereby the success 

of its customers as well. 

947 


Oberösterreich


Management Report 2007 

TOTAL ASSETS DEVELOPMENT (IN EUR BN) 

2007 

2006 

2005 

2004 

2003 

0 5 10 15 20 25 

Raiffeisenlandesbank Oberösterreich Aktiengesellschaft has 

adopted a special customer orientation. The goal is to do 

everything possible to assist the customers. For this reason, 

the leading institution of the Raiffeisen Banking Group Upper 

Austria supports its customers with new, well-targeted financ - 

ing instruments, improves its own risk-bearing capacity through 

consistent reduction of the cost/income ratio, con tinuously 

expands its worldwide service and support network and engages 

in forward-thinking training and education measures 

for its employees to establish a firm foundation for the success 

of its customers. 

Raiffeisenlandesbank Oberösterreich plans, develops, maintains 

and expands relationships with its customers, with institutions, 

with the competent authorities in the various regions of activity, 

with neighbours outside of Upper Austria and with strong partners 

around the world. The company relies heavily on sustain - 

ability and value added. The strategies are clearly discernible 

and comprehensible. Raiffeisenlandesbank Oberösterreich has 

always considered it very important to avoid overregulation and 

excess bureaucracy, keeping instead a sense of proportion with 

regard to financing, carefully calculating risks and maintaining a 

high risk-bearing capacity. 

High risk-bearing capacity thanks to a low cost/income ratio 

A bank that dynamically assists companies, finances exports and 

supports companies with banking services in all parts of the world 

must be capable of bearing risks. The lower the cost/income ratio, 

the greater the bank’s ability to positively arrange its operations. 

With its high risk-bearing capacity, Raiffeisenlandesbank Ober - 

österreich is capable of financing the diverse opportunities that 

arise for companies and their employees. 

BUSINESS DEVELOPMENT 

The sustained positive development and stability of Raiff - 

eisenlandesbank Oberösterreich are also demonstrated in the 

balance sheet totals, which grew by EUR 3,002 million, or 

17.3%, compared with the end of the previous year’s balance 

sheet date to reach EUR 20,350 million. 

SOURCE OF FUNDS/CAPITAL STRUCTURE 

The increase on the liabilities side of the balance sheet was 

derived in particular from a sharp increase in savings and giro 

deposits as well as a rise in the liabilities to banks. 

The liabilities to banks increased over the last year by EUR 

1,463 million, or 18.1%, to EUR 9,527 million. 

Of this year-end amount, EUR 2,847 million are payable on 

demand. Included in this are deposits held by the Upper 

Austrian Raiffeisen banks in the amount of EUR 1,764 million, 

which reflect the strong primary funds available at the primary 

level. 

48 Annual Report 07 

12.8 

14.2 

15.7 

17.3 

20.4

The liabilities with fixed term or withdrawal date amounted to 

EUR 6,680 million as at 31 December 2007, which provides 

the Upper Austrian Raiffeisen banks with EUR 1,549 million in 

long-term refinancing funds. 

Also included are long-term refinancing funds totalling EUR 

5,131 million from subsidy providers (such as the Oesterreichische 

Kontrollbank), revenue transfers from issues by 

subsidiaries, loans against borrower’s notes and funds 

borrowed from banks. These funds represent an important 

long-term basis for refinancing. 

The organisational preparations for the submission of cus - 

tomer loans to the European Central Bank tender process 

were completed at Raiffeisenlandesbank Oberösterreich 

during 2007. 

31 Dec 2007 331 Dec 2006 Change 

in EUR mill. in % in EUR mill. in % in EUR mill. in % 

Liabilities to banks 9,527 46.8 8,064 46.5 + 1,463 + 18.1 

Own issues 4,785 23.5 4,328 24.9 + 457 + 10.6 

Savings and giro deposits 4,473 22.0 3,566 20.6 + 907 + 25.4 

Equity 1,316 6.5 1,076 6.2 + 240 + 22.3 

Other liabilities 249 1.2 314 1.8 - 65 - 20.7 

Total assets 20,350 100.0 17,348 100.0 +3,002 + 17.3 

CAPITAL RESOURCES 

As at 31 December 2007, reported equity included the follow - 

ing items: 

Mio. EUR 

Subscribed capital 254.0 

Capital reserves 547.8 

Retained earnings 219.3 

Statutory reserves 262.4 

Untaxed reserves 10.2 

Net income for the year 22.1 

Equity 1,315.8 

The level of equity at Raiffeisenlandesbank Oberösterreich 

rose in absolute terms by EUR 239.7 million to EUR 1,315.8 

million. This growth was the result of a capital increase and 


The Oesterreichische Nationalbank certified the process submitted 

by Raiffeisenlandesbank Oberösterreich. Effective 

immediately, customer loans can now also be used for shortterm 

refinancing. 

The volume of issues, which consisted of securitised loans of 

EUR 3,587 million, subordinated liabilities of EUR 93 million 

and the supplementary capital of EUR 1,105 million, totalled 

EUR 4,785 million as at 31 December 2007. This represents an 

increase of 10.6% over the previous year. 

Liabilities to customers reported on the 2007 balance sheet 

date exhibited an attractive increase of 25.4% over the preceding 

year to reach EUR 4,473 million. This figure related to 

savings of EUR 803 million and payables on demand and 

fixed-term deposits of EUR 3,670 million. 

the strong power of the bank to finance itself, due to the 

excellent income situation. A dividend distribution of EUR 

21.2 million is planned. 

The total amount of own funds to be taken into account at 

Raiffeisenlandesbank Oberösterreich pursuant to the Austrian 

Banking Code amounted to EUR 2,241 million at the end of 

2007. The statutory capital requirement was EUR 1,283 million. 

Despite the high level of growth in 2007, there was an 

equity surplus of EUR 958 million on the balance sheet date. 

With a core capital ratio of 8.10% and an equity ratio in the 

banking book of 13.99%, the figures are noticeably above the 

minimums. 

Raiffeisenlandesbank Oberösterreich is in a very pleasing equity 

situation for financing its further growth over the coming years. 

49 

9 


Oberösterreich

APPLICATION OF FUNDS/ASSETS STRUCTURE 

On the asset side, above all, more loans and advances to 

customers contributed to the increase in the total assets. 

As at the 2007 balance sheet date there was a volume of EUR 

11,358 million in loans and advances to customers. Com pared 

to the year before, this amounts to an increase of EUR 2,440 

million or 27.4%. As in past years, the focus was on qualitative 

growth. In supporting and accompanying our customers, 

we not only want to provide them with financing, we also hope 

to help them take advantage of good chances with modern 

financing models and a diverse range of subsidy opportunities. 

The far-sighted, dynamic risk provision policy applied 

when assessing credit exposure was continued. 

Loans and advances to banks rose during the course of 2007 

by EUR 399 million to EUR 4,462 million. Of the loans and 

advances at the end of the year, EUR 1,039 million were re - 

financed to Raiffeisen banks in Upper Austria. 

Securities held by the bank increased in the year 2007 by 2.3% 

to EUR 3,470 million. As at the end of the year, these con - 

sisted of EUR 436 million in public sector debt issues and 

similar securities, EUR 1,744 million in bonds and other fixed 

interest securities and EUR 1,290 million in shares and other 

non-fixed interest securities (e.g. pension funds). 

Raiffeisenlandesbank Oberösterreich did not have any US 

subprime securities in its portfolio on 31 December 2007. 

As in previous years, all securities, including those held as 

fixed assets, were valued according to the strict lower of cost 

or market principle. The exception to this is a small volume of 

trading securities that are assessed “mark to market”. 

50 

31 Dec 2007 31 Dec 2006 Change 


Loans and advances to customers 11,358 55.8 8,918 51.4 + 2,440 + 27.4 

Loans and advances to banks 4,462 21.9 4,063 23.4 + 399 + 9.8 

Securities 

Holdings and investments 

3,470 17.1 3,391 19.6 + 79 + 2.3 

in associated companies 853 4.2 784 4.5 + 69 + 8.8 

Other assets 207 1.0 192 1.1 + 15 + 7.8 

Total assets 20,350 100.0 17,348 100.0 + 3,002 + 17.3 

Holdings and shares in associated companies were expanded 

compared to the previous year by EUR 69 million. 

INCOME SITUATION 

In 2007, Raiffeisenlandesbank Oberösterreich again succeeded 

in maintaining its pleasing profit trend. 

The net interest income reported for 2007 was EUR 91.2 million, 

or 14.6%, higher than the comparable value for the preceding 

year, mainly due to the flattening off of the interest-rate 

curve. In 2007, the Raiffeisenlandesbank Oberösterreich 

interest margin amounted to 0.48%. 

The increase in operating income by 9.3% was due to the rise 

in income from securities and investments (31.7%) and other 

operating income (11.5%). The income balance from commission 

business in 2007 was 15.5% up on that for the preceding 

year, and amounted to EUR 62.9 million. 

General administration costs in 2007 comprised EUR 72.7 million 

in personnel expenses and EUR 58.7 million in operating 

expenses. 

While total assets increased by 17.3%, total operating expenditure 

was only 6.1% higher than in the previous year. 

The cost/income ratio was also further improved in 2007 

by 1.4% points. In a banking comparison, the cost/income 

ratio of 47.1% in 2007 was extremely favourable. In 2007, 

for every euro earned, only 47.1 cents were consumed by 

costs. 


2007 2006 Change 

in EUR mill. in % in EUR mill. in % in % 

Ø TA Ø TA 

Net interest income 91.2 0.48 106.8 0.65 - 14.6 

Income from securities and investments 137.5 0.73 104.4 0.63 + 31.7 

Other income 101.9 0.54 91.4 0.55 +11.5 

Operating income 330.6 1.75 302.6 1.83 +9.3 

Personnel expenses -72.7 -0.38 - 67.8 -0.41 +7.2 

Operating expenses -58.7 -0.31 - 55.3 -0.34 +6.1 

Other expenses -24.3 -0.13 - 23.6 -0.14 +3.0 

Total operating expenditure -155.7 -0.82 - 146.7 -0.89 +6.1 

Operating profit 174.9 0.93 155.9 0.94 +12.2 

Cost/income ratio 47.1% 48.5% 

ø Balance sheet total 18,849 16,516 

DEVELOPMENT OF THE COST/INCOME RATIO (IN %) 

60 

56 

54 

52 

50 

48 

46 

44 

42 

40 

53.4 

51.9 

49.5 

48.5 

47.1 

2003 2004 2005 2006 2007 

The operating profit posted by Raiffeisenlandesbank Ober - 

österreich for the 2007 financial year hit a record level once 

again with EUR 174.9 million. Compared to the previous year, 

this was an increase of EUR 19 million, or 12.2%. 

The profit on ordinary activities rose by 6.9% to EUR 105.5 million. 

Despite an extremely prudent risk provision policy and the 

valuation of securities according to a strict lower of cost or 

market principle, the EUR 100 million mark was crossed for the 

first time. 

Profit for the year was up by EUR 102.5 million and is thus 

also over EUR 100 million for the first time. 

Following the deduction of the movements in the reserves, 

which resulted in expenditure of EUR 80.3 million, the net profit 

reported for 2007 amounted to EUR 22,122,854.50. 

RATING UPGRADE 

OF RAIFFEISENLANDESBANK OBERÖSTERREICH 

Moody’s rating agency raised the long-term rating on 20 April 

2007 from A1 to Aa3, thereby confirming the successful course 

of Raiffeisenlandesbank Oberösterreich. 

BANK BRANCHES 

On 31 December 2007 Raiffeisenlandesbank Oberösterreich 

had 20 bank branches in the greater Linz and Traun urban 

area. Our customers have modern and friendly business facilities 

at their disposal, which have been equipped in line with 

Annual Report 07 951 


Oberösterreich

the very latest banking operation know-how and are set up 

for confidential consulting meetings. The self-service com - 

ponents and, in particular, our electronic banking system 

(ELBA) offer customers the most amount of flexibility possible 

with which they can do their banking. 

Apart from the acquisition of new clients, the assistance and 

support of existing customers was the main priority. The success 

of customer relations is measured with the so-called 

cross-selling ratio. On average, the customers in the retail area 

have 4.37 products. During the reporting year, it was possible 

to increase the number of retail customers supported to almost 

69,000. Compared to the previous year, this represents 

a 2.8% rise. 

Raiffeisenlandesbank Oberösterreich also successfully applies 

this customer-orientated approach on the Internet. 44% of 

private customers with an account at Raiffeisen already take 

advantage of Internet Banking. 

For this, Raiffeisen customers with “mein.raifeisen.at mit ELBA- 

Internet” have the following Internet services at their fingertips: 

■ Payment transactions 

■ Account information 

■ Securities transactions (“boerse-live.at”) 

■ Online savings 

■ as well as a secure communication line with a 

personal mailbox 

Raiffeisen customers that do not have “mein.raiffeisen.at mit 

ELBA-Internet” and non-customers can access the following 

Internet services around the clock: 

■ Application for products and product information: Giro 

account, Maestro Raiffeisen card, credit card, custody account, 

online savings, savings with a building society, financing, 

provisions and retaining value. 

The branch in Southern Germany has a total of seven loca tions: 

During the 2007 reporting year, the number of cus tomers 

serviced and the business volume was again noticeably increased. 

For 2008, the opening of another bank branch in Heilbronn 

is planned. The core competencies of Raiffeisen lan desbank 

Oberösterreich in this market segment are above all in 

52 

the areas of special financing for companies, real estate project 

financing as well as in the superior private banking sector. 

MODERN VIDEO CONFERENCING SYSTEMS FOR 

EFFICIENT COMMUNICATION THROUGHOUT THE 

UPPER AUSTRIAN RAIFFEISEN NETWORK 

The continuously growing volume of business at the locations 

in Vienna, Germany and the Czech Republic requires fast and 

above all efficient information and communications exchange. 

Raiffeisenlandesbank Oberösterreich is planning to use an 

integrated video conferencing solution for this. 

At the moment, the relevant video conferencing systems are 

being designed and set up. The plan is to furnish selected 

work places and conference rooms with modern video technology 

that will enable our employees in future to communicate 

quickly and efficiently between the various locations in 

Austria, Germany and the Czech Republic. With this, we hope 

to improve communication and at the same time reduce travel 

time and expenses. 

Once it is implemented, this efficient communications solution 

will naturally be available to all Upper Austrian Raiffeisen 

banks, which will further improve the cooperation and communication 

in the Upper Austrian Raiffeisen network. 

HUMAN RESOURCES MANAGEMENT 

As at 31 December 2007, Raiffeisenlandesbank Ober österreich 

had a banking staff of 891 and thus offered a large number 

of top quality full and part-time jobs (part-time quota: 11%). 

With a tailor-made overall design, Raiffeisenlandesbank 

Oberösterreich added new momentum to the training and 

development of apprentices. This paves the way to college 

for our next generation bankers. 

At the Raiffeisenlandesbank Academy which was founded 

to build up future managers and specialists, high-potential 

employees with individual training programmes are pro - 

moted and prepared for deployment in strategically im - 

portant positions. 


QUALIFIED AND COMMITTED EMPLOYEES ARE 

AN ESSENTIAL POTENTIAL FOR THE FUTURE AT 

RAIFFEISENLANDESBANK OBERÖSTERREICH 

Only employees that have been excellently trained can 

guarantee the success of customers for the future. 

E-learning has a very high status in the Raiffeisen Banking 

Group Upper Austria. The learning platform, raiffeisen@ 

learning, combines all the modern instruments of communication 

to guarantee an efficient training and development programme 

with blended-learning concepts and is being con - 

tinuously developed further and adjusted to meet the current 

requirements. 

The online certification of consultants was developed in cooperation 

with the Johannes Kepler University in Linz and the 

LIMAK Johannes Kepler University Business School and has 

been recognised with the European E-Learning Award. 

In 2008, this innovative training instrument will be expanded 

to include multimedia e-learning. In the future it will be pos - 

sible to transmit instruction units live through the raiffeisen@ 

learning platform directly to the workspaces of the various 

employees. 

Participants in this multimedia training program, which is 

produced in its own e-learning multimedia studio, work 

through the contents of the programme on their computer at 

their own desk. 

RISK MANAGEMENT 

The long-term success of Raiffeisenlandesbank Oberösterreich 

is largely dependent upon active risk management. In order to 

achieve this target, risk management was implemented with 

structures that facilitate the identification and measurement of 

all risks (market, credit, liquidity and operational risks) and their 

active managerial counteraction. 

The Managing Board’s overall risk strategy ensures that risks 

remain synchronised and in line with the strategic orientation 

of the company. The Managing Board and the Supervisory 

Board are regularly informed. 

Market risks 

Market risks are defined as changes in interest rates, currency 

and exchange rates relating to securities, interest-rate and 

foreign exchange items. These risks are measured in terms of 

the value-at-risk parameter. This measures a possible loss, 

which with 99% probability will not be exceeded in the case 

of a certain holding period. 

The value-at-risk is established daily for the trading books 

using the Bloomberg trading system, while the KVAR+ risk 

management program is employed for the bank books. 

Apart from this parameter, stop-loss, present value of a basis 

point and volume limits are also applied as additional risk 

limitations. 

These risk management methods are also employed for hedge 

positions. 

The total limit for these risks is decided on by the Managing 

Board after taking the risk-bearing capabilities of the bank into 

consideration. Controlling continuously checks that these 

limits are complied with. 

Shifts in the interest, currency and share price landscape can 

bring a major influence to bear on results and the risk situation. 

Therefore, possible shifts in risk parameters are simulated and 

the consequences reported to the Managing Board. 

Credit risk 

The principles for the credit ratings of the customers are in - 

corporated in the “Credit Risk Management” manual. This set of 

regulations is a compact representation of the standards valid for 

Raiffeisenlandesbank Oberösterreich. These are oriented on international 

standards (Basel II) and on supervisory recommendations. 

The organisational separation between the market and 

market consequences was already implemented some years ago. 

Moreover, in order to measure the credit risk, following an internal 

bank rating, financing is divided into creditworthi ness and 

risk classes. The risk class of a borrower therefore assumes two 

dimensions, comprising the determination and assess ment of 

the economic situation and the taking of collateral. 



Oberösterreich

Both hard and soft facts are employed as creditworthiness 

criteria. In corporate customer business, soft facts are de fined 

systematically during discussions with the company and then 

assessed. 

Since 2005, a scoring system has been employed for the auto - 

matic classification of small volume business with employed 

retail customers. 

This credit rating system is also utilised by subsidiaries in this 

customer segment. 

Liquidity risk 

Liquidity risk means not being able to fulfil one’s payment 

obligations by the due date or, in the case of a liquidity short - 

age, of not being able to acquire enough liquidity at the terms 

expected. 

Maturity-matching refinancing has a high priority in Raiffeisenlandesbank 

Oberösterreich. This is reflected in the liquidity 

gap analysis. 

This is used for the calculation of monthly scenarios, which 

define the closure expenditure required for open liquidity items. 

The sufficient supply of short- and medium-term liquidity 

in possible bottleneck situations is shown in the liquidity 

hedging plan. 

Operational risks 

Raiffeisenlandesbank Oberösterreich defines operational risk 

as being the risk of losses derived from the inadequacies or 

failure of internal procedures, people and systems, or external 

events. 

Raiffeisenlandesbank Oberösterreich uses both organisa tional 

and computer technology methods in order to best limit this 

type of risk. A high degree of security is attained by means of 

limit systems, competence regulations, a risk-adequate in - 

ternal control system, a comprehensive security manual as 

a behaviour code and directive, as well as scheduled and 

unscheduled audits by Internal Auditing. 

The operative management of this type of risk involves risk 

discussions and analyses with managers (early warning system) 

and the systematic registration of errors in a database for analysis 

(ex-post analysis). 

Risk-bearing capacity analysis 

The risk bearing capacity analysis compares the Group risk 

with the available risk coverage (operating result, hidden reserves, 

provisions and equity), in order to furnish the certainty 

that even in the very unlikely case of an extreme situation, 

sufficient capital for risk coverage would be available. 

The comparison of the Group risk with the available coverage 

provides the risk-bearing capacity. 

OeNB Audit 2007 

The extensive audit carried out during the 2007 financial year 

by OeNB of the business operations of Raiffeisenlandesbank 

Oberösterreich, confirmed that the risk management already 

complied with the requirements of Basel II, even before 

Basel II came into effect. 

OUTLOOK 

Raiffeisenlandesbank Oberösterreich is in the process of 

further expanding its risk-bearing ability and competitiveness. 

The cost/income ratio is being reduced further by exercising 

tight cost and income management, which also increases the 

bank’s positive creative power. 

State-of-the-art financial services for our customers 

In the past, Raiffeisenlandesbank Oberösterreich has built up 

many innovative business fields. With inventive and modern 

financial services, we focus on sustainability and value-added, 

as well as a continuous and lasting upward trend. Due to the 

large capital resources available and the positive results, we 

are in a position of systematically being able to expand our 

special customer orientation. Our predominant marketing principle 

is to assist the retention and enlargement of the financial 

leeway of our customers. 


Ongoing further development 

In the 2008 financial year, Austria’s strongest regional bank 

will remain on its successful course. The available figures point 

toward the continuation of this unique path to success. 

In the current year, we will push forward with the expansion of 

the correspondent and cooperation bank network, focus on 

Romania and Southern Russia, strengthen export financing, 

accompany more and more companies to China and India, 

broaden our leasing offers in the direction of Eastern Europe 

and, above all, help to optimally shape the financing of the 

generation change in companies. 

Raiffeisenlandesbank Oberösterreich intends that expecta - 

tions should not only be fulfilled but surpassed, and cus- 



Helmut Schützeneder 

Member of the Managing Board 

Markus Vockenhuber 


Linz, 04 February 2008 


Europaplatz 1a, 4020 Linz 

THE MANAGING BOARD 

tomers should not only receive support, but also inspiration. 

A unique level of customer orientation, with competence, 

charm, understanding and yet assertireness, leadership with 

regard to the development of new, targeted products and 

modern sales instruments are fundamental building blocks 

that distinguish us. We want to create trust, guarantee security 

and ensure a solid base for a successful and sustainable 

partnership. 

There were no events of particular significance after the close 

of the 2007 business year. 

There are no results of research and development to comment 

on, as these are not relevant in this industry. 

Hans Schilcher 

Deputy Chief Executive 

Georg Starzer 


Michaela Keplinger-Mitterlehner 




Oberösterreich

56 

FINANCIAL STATEMENTS 2007 


AKTIENGESELLSCHAFT, 4020 LINZ, EUROPAPLATZ 1A 

BALANCE SHEET AS AT 31 DECEMBER 2007 

INCOME STATEMENT 2007 

NOTES TO THE FINANCIAL STATEMENTS 2007 

(SECTION SUBJECT TO STATUTORY DISCLOSURE) 

AUDIT CERTIFICATES 



Balance Sheet as at 31 December 2007 

ASSETS 

1. Cash in hand and balances 

31 Dec. 2007 31 Dec. 2006 

in EUR in EUR in EUR ‘000 in EUR ‘000 

at central banks 35,544,006.14 19,308 

2. Public sector debt issues and 

bills of exchange eligible for refinancing 

at the Austrian Central Bank 

a) Public sector debt issues 

and similar securities 

b) Bills of exchange eligible 

436,212,606.65 502,292 

for refinancing at central banks 0.00 436,212,606.65 0 502,292 

3. Loans and advances to banks: 

a) Payable on demand 1,159,712,435.02 519,771 

b) Other loans and advances 3,302,114,702.20 4,461,827,137.22 3,542,791 4,062,562 

4. Loans and advances to customers 11,357,637,755.85 8,918,370 

5. Debt securities and other 

fixed-income securities: 

a) From public sector issuers 254,767.62 6,501 

b) From other issuers 

including: 

1,744,110,847.85 1,744,365,615.47 1,798,051 1,804,552 

own bonds (60,718,420.95) (43,398) 

6. Shares and other variable 

yield securities 1,290,128,229.79 1,083,924 

7. Investments 

including: 

106,976,761.89 82,981 

banks (6,353,570.51) (6,257) 

8. Investments in associates 

including: 

746,497,803.02 701,389 

banks (32,824,255.26) (25,824) 

9. Intangible fixed assets 0.00 0 

10. Property, plant and equipment 

including: 

land and buildings used by the bank 

22,006,185.34 24,134 

in the course of its operations (17,498,574.44) (19,426) 

11. Own shares or interests and shares 

in companies with a controlling or 

majority holding 

including: 

0.00 0 

nominal values (0.00) (0) 

12. Other assets 126,746,889.59 121,770 

13. Subscribed capital (payment has been 

demanded but not yet paid) 0.00 0 

14. Deferred income from tax assets 22,138,518.86 26,967 

Total assets 20,350,081,509.82 17,348,249 

1. Foreign assets 6,220,305,729.64 4,506,127 



Oberösterreich

Balance Sheet as at 31 December 2007 

58 

LIABILITIES 



1. Liabilities to banks: 

a) Payable on demand 2,846,748,009.36 2,725,331 

b) With fixed term or withdrawal date 6,680,088,006.43 9,526,836,015.79 5,338,256 8,063,587 

2. Liabilities to customers: 

a) Savings deposits 

including: 

803,279,199.05 746,233 

aa) payable on demand (45,973,350.91) (45,012) 

ab) with fixed term or termination date (757,305,848.14) (701,221) 

b) Other liabilities 

including: 

3,669,738,499.02 4,473,017,698.07 2,820,211 3,566,444 

ba) payable on demand (1,890,875,149.84) (1,639,450) 

bb) with fixed term or termination date (1,778,863,349.18) (1,180,761) 

3. Debt securities in issue: 

a) Bonds issued 1,326,584,033.37 1,120,454 

b) Other liabilities evidenced by certificates 2,260,603,839.08 3,587,187,872.45 2,065,003 3,185,457 

4. Other liabilities 138,388,243.20 188,962 

5. Deferred income from tax liabilities 30,768,981.37 37,121 

6. Provisions: 

a) Provisions for severance payments 16,353,595.00 14,838 

b) Provisions for pension obligations 17,565,881.92 17,479 

c) Provisions for taxes 12,234,582.90 10,321 

d) Other provisions 33,913,354.92 80,067,414.74 45,515 88,153 

6.A Fund for general bank risks 0.00 0 

7. Subordinated liabilities 92,700,721.44 94,201 

8. Supplementary capital 1,105,283,809.76 1,048,224 

9. Subscribed capital 254,031,954.25 241,032 

10. Capital reserves: 

a) Committed 547,845,996.45 410,859 

b) Uncommitted 0.00 547,845,996.45 0 410,859 

11. Retained earnings 

a) Statutory reserves 

b) Reserves in accordance with 

0.00 0 

the articles of association 0.00 0 

c) Other reserves 

including: 

reserves pursuant to § 225 (5) 

219,328,790.46 219,328,790.46 164,499 164,499 

of the Austrian Business Code (0.00) (0) 

12. Liability reserve pursuant to § 23 (6) 

of the Austrian Banking Act 262,359,531.48 229,940 

13. Net income for the year 22,122,854.50 19,056 


LIABILITIES 



14. Untaxed reserves: 

a) Valuation reserve due to 

special depreciation 10,141,625.86 10,714 

b) Other untaxed reserves 

including: 

ba) investment allowance pursuant 

to § 10 of the 1988 Austrian 

0.00 10,141,625.86 0 10,714 

Income Tax Act 

bb) carry-over reserves pursuant 

to § 12 of the 1988 Austrian 

(0.00) (0) 

Income Tax Act (0.00) (0) 

Total liabilities 20,350,081,509.82 17,348,249 

1. Contingent liabilities 

including: 

2,073,425,058.85 1,710,949 

a) acceptances and endorsed bills sold 

b) liabilities from indemnity 

(0.00) (0) 

agreements and guarantees (2,073,345,747.23) (1,710,870) 

2. Credit risks 

including: 

liabilities from 

7,911,056,429.98 7,027,493 

repurchase transactions (31,847,192.70) (54,960) 

3. Liabilities from 

trust fund transactions 12,196,298.19 10,334 

4. Equity eligible for inclusion pursuant 

to § 23 (14) of the Austrian Banking Act 

including: 

equity pursuant to § 23 (14) 

2,241,482,297.14 1,965,596 

subpara. 7 of the Austrian Banking Act (0.00) (0) 

5. Mandatory equity pursuant to 

§ 22 (1) of the Austrian Banking Act 

including: 

mandatory equity pursuant to § 22 (1) 

1,283,547,846.98 1,023,749 

(1 and 4) of the Austrian Banking Act (1,279,368,846.98) (1,018,956) 

6. Foreign liabilities 3,940,648,433.21 3,524,094 

7. Hybrid capital pursuant to § 23 (2) 

(5 and 6) of the Austrian Banking Act 0.00 0 

8. Under-accrual in provisions 

for pension obligations 273,637.47 354 



Oberösterreich

Income Statement 2007 

60 

2007 2006 


1. Interest and interest-related income 

including: 

781,859,363.79 558,723 

from fixed interest securities (100,102,206.16) (76,781) 

2. Interest and interest-related expenses - 690,713,806.63 - 451,968 

I. NET INTEREST INCOME 91,145,557.16 106,755 

3. Income from securities and investments: 

a) Income from shares, other equity interest 

and non-fixed interest securities 75,980,894.02 54,275 

b) Income from investments 5,029,733.58 3,714 

c) Income from shares in associates 56,501,196.36 137,511,823.96 46,448 104,437 

4. Commission income 95,748,540.04 86,924 

5. Commission expenses - 32,853,251.31 - 32,452 

6. Income from/expenses 

in financial operations 13,044,110.76 11,442 

7. Other operating income 25,977,309.48 25,504 

II. OPERATING INCOME 330,574,090.09 302,610 

8. General administrative expenses: 

a) Personnel expenses 

including: 

- 72,719,194.27 - 67,808 

aa) wages and salaries 

ab) expenses for statutory social security 

contributions, payroll taxes 

(- 52,701,886.46) (- 46,529) 

and mandatory contributions (- 13,149,481.11) (- 13,849) 

ac) other social expenses 

ad) expenses for pension schemes 

(- 947,970.32) (- 970) 

and support payments 

ae) allocations to the provisions 

(- 3,990,978.61) (- 3,806) 

for pensions 

af) expenses for severance payments 

(- 86,654.58) (- 74) 

and employee pension funds (- 1,842,223.19) (- 2,579) 

b) other administrative expenses 

(operating expenses) - 58,679,474.06 - 131,398,668.33 - 55,262 - 123,070 

9. Value adjustments for property items 

in asset Items 9 and 10 - 2,823,970.57 - 3,085 

10. Other operating expenses - 21,464,157.43 - 20,566 

III. OPERATING EXPENSES - 155,686,796.33 - 146,721 

IV. OPERATING RESULT 174,887,293.76 155,889 


IV. OPERATING RESULT 



(carry-over) 

11./12. Balance from reversals/ 

additions, or value adjustments 

to loans and certain securities 

and provisions for contingent 

174,887,293.76 155,889 

liabilities and loan risks 

13./14. Balance from reversals/ 

additions, or value adjustment 

to securities valued as financial 

assets as well as investments and 

- 57,092,877.37 - 55,275 

shares in associates - 12,282,434.31 - 1,920 

V. RESULTS FROM ORDINARY 

BUSINESS ACTIVITIES 105,511,982.08 98,694 

15. Extraordinary income 

including: 

withdrawals from the fund 

0.00 0 

for general bank risks (0.00) (0) 

16. Extraordinary 

expenses 

including: 

allocations to the fund 

0.00 0 

for general bank risks (0.00) (0) 

17. Extraordinary result 0.00 0 

18. 

(subtotal of items 15 and 16) 

Taxes on income 

and earnings - 1,084,400.60 - 3,495 

19. Other taxes, unless reported 

under Item 8 - 1,958,160.94 - 329 

VI. PROFIT FOR THE YEAR 102,469,420.54 94,870 

20. Movements in reserves 

including: 

- 80,346,566.04 - 75,814 

allocation to the statutory reserve (- 32,419,309.87) (- 20,982) 

reversal from the statutory reserve (0.00) (0) 

VII. NET PROFIT 22,122,854.50 19,056 

21. Profit/loss carry-over 0.00 0 

VIII. NET INCOME FOR THE YEAR 22,122,854.50 19,056 



Oberösterreich

Notes to the Financial Statements 2007 

1. INFORMATION CONCERNING THE REPORTING AND VALUATION METHODS USED IN THE BALANCE SHEET 

AND THE INCOME STATEMENT 

The 2007 Financial Statements were prepared in accordance 

with the provisions of the Austrian Banking Act (BWG) and the 

Austrian Business Code (UGB). 

The annual financial statements were drawn up in line with the 

principles of orderly accounting, as well as the generally 

accepted standard practice providing a true and fair view of 

the assets, financial position and profitability of the company. 

The principle of completeness was observed in preparing the 

annual financial statements. 

The principle of individual valuation was observed during the 

valuation of the various assets and liabilities and the con tinued 

operation of the company was assumed. 

The principle of prudence was observed, as only those profits 

realised on the balance sheet date were reported. All recog - 

nisable risks and impending losses were taken into account. 

1.1 Foreign currency translation 

Sums in foreign currency were converted using the European 

Central Bank’s foreign currency mean exchange rate pursuant 

to § 58 (1) of the Austrian Banking Act. 

1.2 Securities 

Both securities held as fixed and current assets were valued 

in accordance with the strict lower of cost or market method. 

In accordance with § 56 (2) of the Austrian Banking Act, bonds 

purchased above par and other fixed-interest securities held 

as fixed assets, were written down pro rata temporis to the 

amount repayable. 

There were no pro rata write-ups in the case of securities 

purchased below par. 

Securities used as cover funds for trust funds were regarded 

as fixed assets and valued according to the strict lower of cost 

or market method pursuant to § 2 (3) of the Austrian Trustees 

Securities Directive. 

Low-volume trading stock securities admissible to the stock 

markets were valued on a mark to market basis. 

62 

1.3 Risk provisions 

Itemised value adjustments and provisions were made for 

recog nisable risks as they relate to borrowers. As in previous 

years, a dynamic, forward-looking approach was adopted for 

the valuation of loan business. For some loans, standardised, 

defined value adjustments were employed, or provisions were 

formed in the shape of dynamic risk provisions, on the basis 

of risk groups in accordance with the "risk management" 

rating model. 

An appropriate provision was formed for possible loan 

defaults relating to financing in risk countries, on the basis of 

international, estimated values. 

On the whole, this is a continuation of the cautious valuation 

policy. 

1.4 Special valuation pursuant to § 57 (1) and (2) 

of the Austrian Banking Act 

The scope for valuation as per § 57 (1) and (2) of the Austrian 

Banking Act was not employed. 

1.5 Investments 

Investments and shares in associated companies were valued 

at historical cost. Extraordinary depreciation was made in the 

case of value impairments which were likely to be of a permanent 

nature, due to sustained losses, a reduction in equity 

and/or a reduced earnings capacity level. 

1.6 Property, plant and equipment 

Pursuant to § 55 (1) of the Austrian Banking Act in combination 

with § 204 of the Austrian Business Code, the valuation of 

tangible assets took place at the historical price or the cost of 

production less scheduled depreciation. 

Low-value items were written-off completely in the year of 

purchase. 

The useful economic life employed as a basis for scheduled depreciation 

amounted to 20-50 years for immovable fixed assets 

and 3- 20 years for movables. 


Extraordinary depreciation was applied in cases of assumed 

lasting value impairment. 

1.7 Provisions for pension obligations 

Pension commitments were calculated according to the partial 

value method for future retirement benefit entitlements, using 

the AVÖ 1999 R Pagler & Pagler mortality tables and an 

interest rate of 3.5%. 

The transitional provisions pursuant to Article X of the Austrian 

Business Code have been applied since 1992 and extend over 

a period of 20 years. 

1.8 Provisions for severance payments 

and similar pensions 

The provisions for severance payments on the balance sheet 

date were calculated according to actuarial mathematical principles 

using an interest rate of 3.5% and subject to the assumption 

that an average employment term can be expected. 

The provisions for long-service bonuses were calculated according 

to actuarial mathematical principles using an interest 

rate of 3.5% and subject to the assumption that an average 

employment term can be expected. A deduction for fluc tuations 

was taken. 

The transitional provisions of Article X of the Austrian Business 

Code were not implemented. 

1.9 Other provisions 

In line with the prudence principle, other provisions include all 

risks recognisable at the time the balance sheet was prepared, 

as well as those liabilities which were basically certain, but 

where uncertainty existed as to their amount have been considered. 

1.10 Own issues 

Accruals and deferrals relating to issue costs, additional 

cash payment commission, premiums and discounts were 

reversed over the term of debt in proportion to the capital 

guaranteed. 

1.11 Derivative financial instruments 

The fair value to be provided is the amount at which an asset 

was exchanged or a debt was paid between competent, contractually 

willing and mutually independent business partners. 

Where stock exchange prices were available, these were 

employed for evaluation. Internal evaluation models with current 

market parameters and in particular the cash value method 

and option price models were used for financial instruments 

lacking a stock exchange price. 



Oberösterreich

2. NOTES TO THE BALANCE SHEET 

2.1 Periods to maturity 

Loans and advances and other liabilities to banks and non-banks that are not payable on demand have the following periods to 

maturity: 

Loans and advances Loans and advances 

Remaining period to banks to non-banks 

to maturity 31 Dec 2007 31 Dec 2006 31 Dec 2007 31 Dec 2006 

in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 

Committed for up to 3 months 

Committed for 

1,761,173 2,054,173 1,945,081 1,238,233 

3 to 12 months 

Committed for 

888,785 1,155,603 1,673,203 1,319,846 

1 to 5 years 

Committed for 

268,770 657,053 2,642,751 2,194,210 

more than 5 years 383,386 354,390 3,427,671 2,774,295 

Total 3,302,114 4,221,219 9,688,706 7,526,584 

Liabilities to banks Liabilities to non-banks 

Remaining period 

to maturity 31 Dec 2007 31 Dec 2006 31 Dec 2007 31 Dec 2006 


Committed for up to 3 months 

Committed for 

2,358,872 1,218,572 1,184,130 630,628 

3 to 12 months 

Committed for 

1,060,971 1,381,803 806,567 612,158 

1 to 5 years 

Committed for 

1,227,800 1,289,169 1,916,314 1,733,501 

more than 5 years 2,032,445 1,523,564 2,117,373 2,020,507 

Total 6,680,088 5,413,108 6,024,384 4,996,794 

In 2008, bonds and other fixed-interest securities held by Raiffeisenlandesbank Oberösterreich in the amount of EUR 170,454k 

(2007: 316,078k) will mature, along with bond issues in the amount of EUR 8,721k (2007: EUR 63,619k), 

64 


2.2 Securities 

The securities admitted to trading shown in asset Items 5 and 6 

consist of listed bonds and other fixed interest securities amounting 

to EUR 1,722,824k (previous year: EUR 1,782,409k) and 

listed shares and other non-fixed interest securities totalling 

EUR 77,634k (previous year: EUR 30,108k). 

There are no non-listed bonds and other fixed interest securi - 

ties, non-listed shares and other non-fixed interest securities, 

or investments and shares in associated companies admitted 

to trading. 

The securities admitted to trading shown in asset Items 5 and 6 

are divided into bonds and other fixed interest securities recognised 

as fixed assets totalling EUR 1,573,431k (previous year: 

EUR 1,617,307k) and bonds and other fixed interest securities 

recognised as current assets of EUR 149,393k (previous year: 

EUR 165,102k). 

The shares and other non-fixed interest securities recognised 

as fixed assets amounted to EUR 72,643k (previous year: EUR 

21,976k) and those recognised as current assets to EUR 

4,992k (previous year: EUR 8,132k). 

Asset items are allocated to the fixed assets because the 

securities listed above serve the long-term investment of liquid 

funds, in order to obtain higher returns. 

Securities held as current assets were acquired for the purpose 

of securities trading, in order to attain price gains and for the 

retention of a cash reserve. 

Raiffeisenlandesbank Oberösterreich maintains a securities 

trading account book, in accordance with § 2 subpara. 35 of 

the Austrian Banking Act. The volume of the listed securities 

amounted to EUR 144,423k (previous year: EUR 175,858k) 

and that of the other financial instruments to EUR 123,497k 

(previous year: 116,852k). 



Oberösterreich

2.3 Fixed assets 

Raiffeisenlandesbank Oberösterreich‘s fixed and financial assets developed as follows: 

Acquisition cost/ Depre- Book Depre- 

Balance sheet item Cost of production ciation values ciation 


As at: Additions Disposals As at: As at: 

01 Jan of in the in the 31 Dec of 31 Dec of in the 

the financial financial financial the financial the pre- financial 

year year year Total year vious year year 

Public sector debt issues 

and similar securities 454,532 77,977 139,798 8,319 384,392 448,332 2,320 

Other loans to banks 

Loans and advances 

74,749 63,769 128,467 2 10,049 74,586 0 

to customers 

Debt securities and other 

public interest fixed-interest 

431,954 37,835 25,427 8,747 435,615 426,020 2,979 

securities 

Debt securities and other 

fixed-interest securities from 

2,435 13,042 15,477 0 0 2,435 0 

other issuers 

Shares and other 

1,626,033 415,959 438,606 29,955 1,573,431 1,614,872 22,920 

variable interest securities 1,032,990 971,808 731,219 29,526 1,244,053 1,018,750 20,576 

Investments 

including: 

83,071 34,204 10,208 90 106,977 82,981 0 

banks (6,257) (97) (0) (0) (6,354) (6,257) (0) 

Shares in associates 703,553 58,617 13,508 2,1641) including: 

746,498 701,389 0 

banks (25,824) (7,000) (0) (0) (32,824) (25,824) (0) 

Property, plant and equipment 

including: 

Land and buildings used 

by the bank in the course 

72,947 724 1,294 50,371 22,006 24,134 2,824 

of its operations (55,764) (129) (67) (38,327) (17,499) (19,426) (2,040) 

Total 4,482,264 1,673,935 1,504,004 129,174 4,523,021 4,393,499 51,619 

1) Loss allocation of atypical silent partners for start-up losses of EUR 2,163,900 relating to depreciation for wear and tear. 

66 


2.4 Equity and equity-related liabilities 

In the case of subordinated liabilities, the subordination is 

always agreed separately in writing pursuant to § 51 (9) of the 

Austrian Banking Act. The term and repayment are established 

in a manner that permits allocation to equity in accordance 

with § 23 (8) subpara. 1 of the Austrian Banking Act. The subordinated 

liabilities contain an issue of EUR 124,172k and an 

interest rate of 5.161% as well as an emission with a nominal 

value of EUR 117,305k and an interest rate of 5.0%, which 

will be paid off in 2020. 

In accordance with its articles, Raiffeisenlandesbank Ober österreich’s 

share capital as at 31 December 2007 was EUR 253,000k 

(previous year: 240,000k). It consists of 714,578 (previous year: 

714,578) ordinary shares and 749,294 (previous year: 674,075) 

preferred shares. 

The increase in share capital by a nominal amount of 13,000k 

was raised in accordance with the decision of the extraordinary 

general meeting on 07 December 2007 and with the approval 

of the Supervisory Board by issuing 75,219 individual shares 

– non-par, registered and voting preferred shares – at an issue 

amount of EUR 1,994 each. 

Participation capital amounting to EUR 1,032k (previous year: 

EUR 1,032k) has been issued. 

2.5 Provisions and other liabilities 

Due to the use of the transitional provision contained in Article 

X (3) of the Austrian Accounting Act, on 31 December 2007 

there was an under-accrual in the provisions for pension 

obligations of EUR 274k (previous year: EUR 354k). 

2.6 Supplementary information 

The balance sheet contains foreign currency items recog - 

nised as assets amounting to EUR 2,287,011k (previous year: 

EUR 2,019,767k) and EUR 1,821,958k (previous year: EUR 

1,656,999k) recognised as liabilities. 



Oberösterreich

The following derivative financial instruments existed on the balance sheet date: 

68 

Term to maturity 

Interest rate derivatives 

OTC products 

Nominal amount Market value 

up to from 1 year over 

1 year to 5 years 5 years Total Positive Negative 

in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 

Forward rate agreements 1,500,000 2,265,350 0 3,765,350 7,158 6,748 

Interest-rate swaps 4,927,304 7,716,157 11,080,274 23,723,735 265,341 373,317 

Interest-rate options – purchases 4,000 609,197 408,912 1,022,109 8,414 41 

Interest rate options – sales 95,539 1,708,854 1,487,991 3,292,384 1,305 25,504 

Products traded on the stock exchange 

Interest rate futures 298 34,226 69,887 104,411 0 0 

Interest rate options – purchases 5,178 0 0 5,178 0 0 

Interest rate options – sales 9,135 0 0 9,135 0 0 

Total 6,541,454 12,333,784 13,047,064 31,922,302 282,218 405,610 

Foreign-currency derivatives 

OTC products 

Spot exchange and 

forward transactions 

Currency and interest-rate swaps 

1,013,215 4,488 0 1,017,703 6,121 7,296 

with several currencies 2,324,670 118,448 30,990 2,474,108 34,814 21,756 

Currency options – purchases 262,225 165,363 0 427,588 12,725 0 

Currency options – sales 270,494 164,858 0 435,352 0 12,364 

Total 

Other futures 

OTC products 

3,870,604 453,157 30,990 4,354,751 53,660 41,416 

Structured shares/index products 205 0 0 205 0 204 

Shares options – purchases 31,134 128,716 75,211 235,061 27,649 6,132 

Shares options – sales 32,829 124,861 75,210 232,900 5,508 27,147 

Commodity options – purchases 0 15,000 5,000 20,000 1,152 298 

Commodity options – sales 0 15,000 5,000 20,000 318 1,378 

Total 64,168 283,577 160,421 508,166 34,627 35,159 

Total OTC products 

Total products traded 

10,461,615 13,036,292 13,168,588 36,666,495 370,505 482,185 

on the stock exchange 14,611 34,226 69,887 118,724 0 0 

Total 10,476,226 13,070,518 13,238,475 36,785,219 370,505 482,185 


Market values from derivatives are not booked, due to the fact that valuation units are formed. 

Prepay- Accruals 

ments and and 

2007 Bank Bank Other Other accrued deferred 

loans liabilities assets liabilities income income 


Book values of 

trading book derivatives 

a) Interest-rate related agreements 104 290 0 140 0 0 

Book values of 

banking book derivatives 

a) Interest-rate related agreements 244,254 204,860 387 -37,674 13,056 26,973 

b) Exchange-rate related agreements 0 0 8,421 0 0 0 

c) Securities-related transactions 0 0 6 180 0 0 

Market values from derivatives are not booked, due to the fact 

that valuation units are formed. 

As at 31 December 2007, securities to the amount of EUR 2,798k 

(previous year: EUR 2,873k) were held as cover for trust fund 

deposits of EUR 5,753k (previous year EUR 3,392k). 

Securities amounting to a book value of EUR 24,044k (previous 

year: EUR 35,940k) were pledged as collateral for certain 

issues of securities, in addition securities with a book value of 

EUR 993,702k (previous year: EUR 1,023,872k) were deposited 

as collateral at banks and stock exchanges. EUR 89,374k (pre- 

vious year EUR 35,722k) were deposited at banks for reasons 

of collateral arrangements and EUR 15,000k are pledged. 

Money claims to the amount of EUR 631,266k (previous year: 

EUR 534,667k) were assigned to the Oesterreichische Kontrollbank. 

Outstanding debts of EUR 53,423k (previous year: 

49,833k) were assigned to the European Investment Bank. 

In addition, as at 31 December 2007, fixed-interest securities 

with a nominal value of EUR 40,000k (previous year EUR 13,000k) 

were held in a blocked account at the Landeszentralbank in 

the Free State of Bavaria as a security deposit for advances 

on securities. 



Oberösterreich

3. NOTES TO THE INCOME STATEMENT 

3.1 Other operating income 

To a large extent, the other operating income shown in Item 7 of 

the income statement amounting to EUR 18,587k (previous year: 

EUR 18,066k) relates to non-bank subsidiary offsetting. 

3.2 Other operating expenses 

To a large extent, the other operating expenses shown in Item 10 

of the income statement amounting to EUR 18,363k (previous 

year: EUR 17,690k) relates to non-bank subsidiary offsetting. 

4. OTHER NOTES 

4.1 Workforce information 

An average of 831 employees worked in banking operations 

during the 2007 financial year (previous year: 800). 

4.2 Advances and loans to members of the Managing 

Board and the Supervisory Board 

Advances and loans to members of the Raiffeisenlandesbank 

Oberösterreich Aktiengesellschaft Managing Board and the 

Supervisory Board consisted of EUR 306k (previous year: 

EUR 287k) to members of the Managing Board and EUR 963k 

(previous year: EUR 385k) to members of the Supervisory 

Board. 

Loans to members of the Managing Board and the Super - 

visory Board were granted at standard bank conditions. Repayments 

are made as agreed. 

4.3 Expenses for severance payments pension obligations 

The personnel expenses contain expenses for severance payments 

amounting to EUR 1,703k (previous year: EUR 2,475k) 

and contributions to employee pension funds of EUR 139k 

(previous year: EUR 104k). 

Expenses for severance payments (including provisions) and 

pension obligations (including provisions) in 2007 amounted 

to EUR 243k (previous year: EUR 313k) for members of the 

70 

3.3 Expenses for 

subordinated liabilities 

Expenses for subordinated liabilities in the 2007 financial year 

totalled EUR 54,796k (previous year: EUR 47,458k). 

3.4 Tax savings 

As a result of the change in the untaxed reserves, a reduction 

in taxes on income and earnings of EUR 0k was calculated 

for 2007 (previous year: EUR 0k). 

Managing Board and to EUR 3,057k for other employees (previous 

year: EUR 3,244k). 

Further expenditure of EUR 1,039k (previous year: EUR 997k) 

was used for Managing Board pensions and EUR 1,580k (previous 

year: EUR 1,350k) for other employees. 

4.4 Expenses for remunerations and reimbursements 

to the members of the Managing Board and the 

Supervisory Board 

In 2007, the remunerations and reimbursements paid to members 

of the Managing Board (including payments in kind and 

expenses in connection with pensions) totalled EUR 2,724k 

(previous year: EUR 2,555k). 

As far as the expenses for former executive managers (severance 

and pension payments) are concerned, § 241 (4) of the 

Austrian Business Code is called upon. 

In 2007, reimbursements of EUR 402k (previous year: EUR 385k) 

were paid to members of the Supervisory Board. 

4.5. The Members of the Board of Raiffeisenlandesbank 

Oberösterreich Aktiengesellschaft 

The names of the members of the Raiffeisenlandesbank Ober - 

österreich Aktiengesellschaft Managing Board and Super - 

visory Board can be found on pages 4 to 7. 














Georg Starzer 






Oberösterreich

Unqualified Audit Certificate 

We examined the annual financial statements of 

for the financial year from January 1 to December 31, 2007, 

taking into consideration the accounting. In compliance with 

Austrian commercial law and the supplementary stipulations 

contained in the company articles, the accounting, presentation 

and content of these financial statements, as well as the 

management report, are the responsibility of the legal rep - 

resentatives of the company. Our responsibility is to express 

an opinion on these financial statements based on our audit 

and a statement concerning the correspondence of the 

management report with the financial statements. 

Our audit was conducted in accordance with the applicable 

Austrian legal regulations and professional standards. These 

standards require that the audit be planned and performed in 

such a manner that reasonable assurance can be obtained as 

to whether the financial statements are free of material mis - 

statement and whether an opinion can be expressed concerning 

the correspondence of the management report with the 

financial statements. During the audit, knowledge concerning 

the business activities and economic and legal background 

72 

Raiffeisenlandesbank Oberösterreich Aktiengesellschaft, 


Linz, 07 March 2008 

KPMG Austria GmbH 

Wirtschaftsprüfungs- und Steuerberatungsgesellschaft 

Martha Kloibmüller Ernst Pichler 

Auditor Auditor 

of the company, as well as the expectations concerning possible 

errors, were taken into account. 

The audit includes an examination, largely on a test basis, of 

evidence supporting the amounts and disclosures in the 

financial statements. The audit also includes the assessment 

of the accounting principles used and significant estimates 

made by the legal representatives of the company, as well as 

the eval u ation of the overall financial statement presentation. 

We believe that our audit provides a reasonable basis for our 

opinion. 

The results of our audit gave no reason for objection. On the 

basis of the knowledge gained during the audit, in our judgement 

the financial statements comply with the legal regula - 

tions in Austria, as well as the supplementary stipulations 

in the company articles and present a true and fair view of 

the assets, financial position and earnings of the company in 

accordance with Austrian accounting regulations. The management 

report corresponds with the financial statements. 



I examined the annual financial statements of 

for the financial year from 1 January 2007 to 31 December 

2007, taking into consideration the accounting. In compliance 

with Austrian commercial law and the supplementary stipulations 

contained in the company articles, the accounting, presentation 

and content of these financial statements and of the 

management report are the responsibility of the legal representatives 

of the company. My responsibility is to express an 

opinion on these financial statements based on my audit and 

make a statement concerning whether the management 

report corresponds with the financial statements. 

My audit was conducted in accordance with the applicable 

Austrian legal regulations and professional standards. These 

standards require that the audit be planned and performed in 

such a manner that reasonable assurance can be obtained as 

to whether the financial statements are free of material misstatement 

and whether an opinion can be expressed concern - 

ing the correspondence of the management report with the 

financial statements. During the audit, knowledge concerning 

the business activities and economic and legal background 




Auditing association: Österreichischer Raiffeisenverband 

Auditor: 

Ursula Palle-Futschik 

Association Auditor 

of the company as well as the expectations concerning possible 

errors were taken into account. The audit includes an 

examination, largely on a test basis, of evidence supporting the 

amounts and disclosures in the financial statements. The audit 

also includes the assessment of the accounting principles 

used and significant estimates made by the legal representatives 

of the company, as well as the evaluation of the overall 

financial statement presentation. I believe that my audit provides 

a reasonable basis for my opinion. 

The results of my audit gave no reason for objection. On the 

basis of the knowledge gained during the audit, in my judgement 

the financial statements comply with the legal regula - 

tions in Austria, as well as the supplementary stipulations in 

the company articles and present a true and fair view of the 

company’s assets and financial position as at 31 December 

2007 and the company’s earnings in the financial year from 

1 January 2007 until 31 December 2007, in accordance with 

Austrian accounting regulations. The management report corresponds 

with the financial statements. 


Raiffeisenlandes- 

bank Oberösterreich

Group Management Report 2007 


GROUP STRUCTURE 

As a superordinated banking institute, starting with the 2007 

financial year Raiffeisenlandesbank Oberösterreich Aktien - 

gesellschaft is obliged to prepare and publish consolidated 

financial statements in accordance with the IAS Regulation (EC) 

1606/2002, abiding by the regulations of the International 

Financial Reporting Standards (IFRS). In addition, notes and 

explanations are required in accordance with the regulations 

of the Austrian Banking Act and the Austrian Business Code. 

Apart from the parent company, the consolidated balance sheet 

of the Raiffeisenlandesbank Oberösterreich Group as on 

31 December 2007 included 25 fully consolidated Group companies 

and 7 Group companies consolidated according to the 

equity method. During 2007, bankidirekt.at AG was fully consolidated 

for the first time and included in the consolidated 

financial statements of Raiffeisenlandesbank Oberösterreich. 

The shares in three subsidiaries, “LDZ” Landesdienstleis - 

tungszentrum Vermietungs GmbH, Passage Linz GmbH and 

Passage Linz GmbH & Co KG, were sold in December 2007 

and the companies removed from the scope of consolidation. 

74 

BUSINESS TRENDS 

The results of the 2007 financial year proved to be a continuation 

of the upward trend seen over the past few years. The main 

reason for this development was the excellent growth and 

earnings situation of Raiffeisenlandesbank Oberösterreich, which 

dominates the Group. 

INCOME STATEMENT 

The income situation of the Raiffeisenlandesbank Oberösterreich 

Group is characterised by a clear upward trend. 

Net interest income before risk provisions sank compared to 

the previous year by EUR 4.6 million or 1.8% to EUR 248.5 

million. This mainly reflects interest income from loans and 

advances to customers and banks as well as fixed-income 

securities. It also includes income from shares and variable yield 

securities as well as from holdings. Interest expenses arise in 

conjunction with amounts owed to customers and banks, with 

securitised liabilities and with subordinated capital. 

2007 2006 Change 

in EUR mill. in EUR mill. in EUR mill. in % 

Net interest income 248.5 253.1 - 4.6 - 1.8 

Risk provisions - 81.5 - 77.9 3.6 4.6 

Net interest income after risk provisions 167.0 175.2 - 8.2 - 4.7 

Net commission income 92.7 79.0 13.7 17.3 

Trading income 17.0 8.5 8.5 100.0 

Results of the valuation of designated financial instruments 12.4 12.6 - 0.2 - 1.6 

Net investment income 36.0 38.1 - 2.1 - 5.5 

Result of companies that are accounted for at equity 109.4 80.7 28.7 35.6 

Administrative Expenses - 250.7 - 242.4 8.3 3.4 

Other operating result 71.2 67.1 4.1 6.1 

Pre-tax profit for the year 255.0 218.8 36.2 16.5 

Operating profit 288.1 246.0 42.1 17.1 

Cost/income ratio 46.5% 49.6% 


The result of fee and commission income and expenses was 

increased by 17.3% to EUR 92.7 million. 

The result of the evaluation of designated financial instruments 

sank by a slight 1.6% to EUR 12.4 million. Net investment income 

reached a value of EUR 36.0 million, including the result 

of the final consolidation of the three subsidiaries, “LDZ” 

Landesdienstleistungszentrum Vermietungs GmbH, Passage 

Linz GmbH and Passage Linz GmbH & Co KG. 

The result of companies accounted for at equity rose com - 

pared to the previous year by EUR 28.7 million or 35.6% to 

EUR 109.4 million. This was mainly due to the positive de - 

velopment of Oberösterreichische Landesbank Aktiengesellschaft 

and Raiffeisenlandesbank Oberösterreich Invest GmbH, 

which holds shares in the voestalpine AG group. 

The administrative expenses rose by 3.4% to EUR 250.7 million 

and contain personnel expenses, other administrative 

expenses and depreciation. 

Other operating income, which mainly consists of income and 

expenses of non-bank group companies, rose by EUR 4.1 million 

or 6.1% to EUR 71.2 million. 

The pre-tax profit posted for 2007 rose by EUR 36.2 million or 

16.5% to a record EUR 255.0 million. 

Compared to the previous year, the operating profit, at EUR 

288.1 million, was up by EUR 42.1 million, a pleasing 17.1%. 

The cost/income ratio developed very positively in the 

2007 financial year. With an excellent 46.5% risk-bearing 

capacity, customers of the affiliated group can be provided 

with even more dynamic assistance in the realisation of their 

opportunities. 

SEGMENTS 

The Group’s pre-tax profit for the year is composed of the results 

of the following segments: 


Corporates & Retail 

In this segment all of Raiffeisenlandesbank Oberösterreich’s 

business relations are bundled that are exposed to a counterparty 

risk. Thus, the Corporates & Retail segment includes the 

business areas corporate customers and groups, major institutional 

customers, SME support, retail business, cash man - 

agement, correspondent banking and international finance. 

In total, this segment added the amount of EUR 28.7 million 

to the operating income. 


The Financial Markets segment includes the results of the 

trad ing areas (money, foreign exchange, stocks and bonds), the 

treasury results from interest-rate management and hedging 

with customers and from the management of the banking book, 

as well as the income from services arising from the area of 

securities sales. In the trading areas, customer business takes 

priority over in-house trading and this is reflected in the high 

portion of income from services. 

All in all, the Financial Markets sector contributed a total of 

EUR 45.3 million to the group’s consolidated result in 2007. 


In detail, the 2007 financial year saw the following business 

developments at the most important Group companies: 

Fully consolidated banks: 

■ Hypo Holding GmbH 

■ SALZBURGER LANDES-HYPOTHEKENBANK AKTIEN- 

GESELLSCHAFT 

The shares in HYPO Salzburg are mainly held indirectly through 

Hypo Holding GmbH. As on 31 December 2007 HYPO Salzburg 

was operating 24 branches in the province of Salzburg. 

Of these, 13 locations are in the central Salzburg area and 

eleven spread out in the province of Salzburg. 

75 

The Group

Corporate customer business grew, taking the conservative 

risk assessment into consideration. In the public sector, classic 

financing models are being increasingly supplemented by 

alternative models. In both areas, synergies with Raiffeisen - 

landesbank Oberösterreich Aktiengesellschaft are to be used 

to the advantage of the customers. 

In the private loan business, the focus of HYPO Salzburg is 

on financing building and residential projects. This area makes 

up three fourths of the bank’s total private financing. 

In the securities business, the customer account volume was 

increased despite the high level of volatility on the stock markets 

and the sinking prices on the European bond markets. 

■ PRIVAT BANK AG der Raiffeisenlandesbank Oberösterreich 

PRIVATBANK AG of Raiffeisenlandesbank Oberösterreich was 

able to increase its business volume during 2007 in the group 

picture including bankdirekt.at AG by 19.3% to about EUR 3.5 

billion. Once again – as in the years before – this was clearly 

above market growth in Austria. 

■ bankdirekt.at AG 

bankdirekt.at AG stands for first-class products for private 

money investment and online securities trading without classic 

investment consultants. 

Effective as at 26 November 2007, bankdirekt.at AG took over 

the direktbank.at division of PRIVAT BANK AG der Raiffeisen - 

landesbank Oberösterreich. Business development was characterised 

by the extreme fluctuations on the stock exchanges 

that brought good sales particularly in the months of October and 

November. All told, the company was able to reach its targets. 

■ KEPLER-FONDS Kapitalanlagegesellschaft m.b.H. 

KEPLER-FONDS KAG was able to stand its ground nicely in the 

difficult markets and continued to increase fund volume through - 

out the year 2007. At the end of 2007 a volume of EUR 7.9 billion 

was managed, which is equivalent to a growth rate of 2.3%. This 

fund volume put KEPLER in fifth place among the 24 Austrian 

capital investment companies. 

Fully consolidated financial institutions: 

■ Raiffeisen-IMPULS-Leasing Gesellschaft m.b.H. 

■ Raiffeisen-IMPULS-Mobilienleasing GmbH 

■ Raiffeisen-IMPULS-Immobilien GmbH 

■ Raiffeisen-IMPULS-Realitätenleasing GmbH 

■ Raiffeisen-IMPULS-Leasing GmbH & Co KG Passau 

With a market share of over 20%, Raiffeisen-IMPULS-Leasing 

was able to further expand its positions as Upper Austria’s leader 

in the leasing market in 2007. A volume of new acquisitions that 

exceeded EUR 700 million for the first time meant a 16% 

increase compared to 2006. At the end of 2007, Raiffeisen- 

IMPULS-Leasing had an inventory of almost 39,000 leasing 

agreements with a purchasing value of over EUR 2.9 billion. 

Other fully consolidated companies: 

The other fully consolidated companies, which also include 

major holding companies (e.g. REAL-TREUHAND Management 

GmbH), companies that play a supportive role in the 

group (e.g. GRZ IT Center Linz GmbH) and institutions that are 

close to the bank (e.g. activ factoring AG), likewise con tribute 

to the positive development of the group. 

■ REAL-TREUHAND Management GmbH 

From the revitalisation of town centres to urban planning, from 

terraced houses to multifunctional office towers, REAL-TREUHAND 

develops and realises real estate projects in accordance with individual 

requirements. Choosing the right location, cost-efficient 

realisation, top construction quality and optimal maintenance 

costs are the first priorities and ensure secure and profitable investments. 

■ GRZ IT Center Linz GmbH 

With a total of 580 employees, GRZ IT Group is one of the 

largest and most successful IT service providers in Austria. The 

product and service spectrum of the GRZ IT Group goes far 

beyond the area of finance. It covers everything from oper at ing 

mainframes, servers and networks of any kind to application 

service provisions, all the way to developing total tailor-made 

IT solutions. 

■ activ factoring AG 

activ factoring AG is not only successful in its traditional markets 

Austria, Southern Germany and the Czech Republic, it actually 

purchases receivables around the world. The combination of prefinancing, 

taking on the complete risk of bad debs and active 

debtor management provides companies with a flexible financ - 

ing and services instrument. 

Companies consolidated at equity: 

Among the most important companies accounted for at equity 

are Oberösterreichische Landesbank Aktiengesellschaft, which 

is held by the fully consolidated Hypo Holding GmbH, and 

Raiffeisenlandesbank Oberösterreich Invest GmbH & Co OG, 


which holds shares in the voestalpine AG group. All seven 

companies that are accounted for at equity achieved a highly 

satisfactory business and earnings development during the 

2007 financial year, contributing positively to the overall operative 

success of the Group. 

The Invest Banking segment made the largest contribution to 

the Group’s overall result in 2007, in the amount of EUR 178.0 

million. 


The Corporate Center segment shows income and expenses 

where the content does not fit into any other segment. Onetime 

special effects that would distort the various segment 

results are also recorded here when applicable. 

In addition, cooperative Group services provided to the Raiff - 

eisen Banking Group Upper Austria by Raiffeisenlandesbank 

Oberösterreich are listed under the Corporate Center. 

In total, the Corporate Center segment contributed EUR 3.0 

million to the total result in 2007. 

THE BALANCE SHEET DEVELOPMENT 

The total assets of Raiffeisenlandesbank Oberösterreich 

Aktiengesellschaft as at 31 December 2007 amounted to EUR 

25,267 million. Compared to the same balance sheet date in 

the preceding year, this represented an increase of EUR 3,116 

million or 14.1%. 

ASSETS 31 Dec 2007 31 Dec 2006 Change 


Loans and advances to banks 4,633 18.3 4,432 20.0 + 201 + 4.5 

Loans and advances to customers 13,744 54,4 11,009 49.7 + 2,735 + 24.8 

Trading assets 537 2.1 511 2.3 + 26 + 5.1 

Financial investments 5,294 21.0 5,058 22.8 + 236 + 4.7 

Companies accounted for at equity 625 2.5 514 2.4 + 111 + 21.6 

Other assets 434 1.7 627 2.8 - 193 - 30.8 

Total 25,267 100.0 22,151 100.0 + 3,116 + 14.1 

On the 2007 balance sheet date there was a volume of EUR 

13,744 million loans and advances to customers. Compared 

to the prior year, this amounts to a strong increase of EUR 

2,735 million or 24.8%. The dynamic risk provision policy 

applied when assessing credit exposure was continued. 

Financial investments rose compared to the previous year by 

4.7% to a value of EUR 5,294 million. 

Loans and advances to banks as at the last balance sheet 

date were EUR 4,633 million, which was EUR 201 million 

higher than 31 December 2006. 

The Raiffeisenlandesbank Oberösterreich Aktiengesellschaft 

Group did not have any US subprime securities in its port folio 

on 31 December 2007. 

LIABILITIES 31 Dec 2007 31 Dec 2006 Change 


Liabilities to banks 8,704 34.5 7,577 34.2 + 1,127 + 14.9 

Liabilities to customers 6,691 26.5 5,532 25.0 + 1,159 + 21.0 

Debt securities in issue 5,922 23.4 5,574 25.2 + 348 + 6.2 

Other liabilities 956 3.8 853 3.8 + 103 + 12.1 

Subordinated capital 1,295 5.1 1,207 5.4 + 88 + 7.3 

Equity 1,699 6.7 1,408 6.4 + 291 + 20.7 

Total 25,267 100.0 22,151 100.0 + 3,116 + 14.1 


77 

The Group

The increase on the liabilities side of the balance sheet is 

mainly derived from a sharp expansion of savings and giro 

deposits among the liabilities to customers as well as more 

liabilities to banks. 

The amounts owed to customers reached a record high of EUR 

6,691 million, showing a rise of 21.0% compared to the previous 

year. Amounts owed to banks rose by 14.9%. Compared 

to the previous year, this represents an increase of EUR 1,127 

million to EUR 8,704 million. 

As at 31 December 2007, reported equity included the fol - 

lowing items: 

78 

in EUR mill. 

Subscribed capital 254.0 

Capital reserves 547.9 

Cumulative results 859.2 

AfS reserves - 41.1 

Minority interests 79.4 

Total 1,699.4 

The equity of the Raiffeisenlandesbank Oberösterreich Group 

rose in absolute numbers by EUR 291.7 million. This growth was 

the result of an increase in the share capital of Raiffeisen - 

landesbank Oberösterreich Aktiengesellschaft as well as the 

ex cellent income situation and the strong power of the Group 

companies to finance themselves. 

All in all, the Raiffeisenlandesbank Oberösterreich Group has a 

very pleas ing equity capital situation which will also provide 

for further growth in the years to come. 

BANK BRANCH MANAGEMENT 

During the reporting year it was possible to increase the number 

of supported retail customers to almost 115,000. Com- 

pared to the previous year this represents a 2.8% increase. 

Aside from modern self-service components and the inno - 

vative electronic banking system (ELBA), customers have 

access above all to modern and customer-friendly business 

facilities that have been equipped in line with the very latest 

banking operation know-how. 

HUMAN RESOURCES MANAGEMENT 

During the 2007 financial year, on average, the fully consolidated 

companies employed a workforce of 1,752 staff. 

Every success depends on people. For this reason, ongoing 

training and development of employees receives special focus. 

OUTLOOK 

The Raiffeisenlandesbank Oberösterreich Group is in the process 

of further expanding its risk-bearing ability and competi - 

tiveness. The cost/income ratio is being reduced further by 

exercising tight cost and income management, which also increases 

the positive creative power of the Group. 

Other important cornerstones of Raiffeisenlandesbank Oberösterreich 

Group’s strategic orientation are sustainable growth 

and the generation of additional value-added. In the past, the 

con tin uous upwards trend and good results have enabled the 

formation of a well-founded capital base. For this reason Raiff - 

eisenlandesbank Oberösterreich Group is in a position to offer 

special services as an expression of a pronounced customer 

focus. For example, it has become more and more important 

to strengthen the competitive ability of companies by using 

special financing models. For years we have also been pro - 

viding venture and partner capital. 

Ongoing further development 

This successful course will be continued during the 2008 

financial year. The available budget figures point toward the 

continuation of this unique path to success. 


During the current year the Raiffeisenlandesbank Oberösterreich 

Group will expand its activities, actively build up its networks 

of correspondent banks and partner banks, focus on 

Romania and Southern Russia, strengthen export finance and 

increasingly support companies especially in penetrating the 

countries that are currently carrying the world economy: 

China, India and Russia. 

The Raiffeisenlandesbank Oberösterreich Group intends not 

only to fulfil expectations, but to surpass them. It not only wants 

to support customers, it hopes to inspire them. A unique level of 








Linz, 07 April 2008 




customer orientation, leadership with regard to the devel op - 

ment of new, targeted products and modern sales instruments 

are fundamental building blocks that distinguish the Group. 

This further increases trust, guarantees security and ensures 

a solid base for a successful and sustainable partnership. 

There were no events of particular importance after the close 

of the 2007 business year. 

There are no results of research and development to comment 

on as these are not relevant in this industry. 



Georg Starzer 




79 

The Group

80 

IFRS CONSOLIDATED 

FINANCIAL STATEMENTS 2007 


Aktiengesellschaft, 4020 Linz, Europaplatz 1a 


BALANCE SHEET 

STATEMENT OF CHANGES IN EQUITY 

CASH FLOW STATEMENT 

NOTES 

The company 

The basics of the consolidated accounts according to IFRS 

Accounting policies 

Segment reporting 

Notes to the income statement 

Notes to the balance sheet 

Risk report 

Other information 

Information based on Austrian accounting practices 

Events after the balance sheet date 

The Members of the Board of Raiffeisenlandesbank Oberösterreich 

AUDIT CERTIFICATES 

STATEMENT OF THE MANAGING BOARD 

REPORT OF THE SUPERVISORY BOARD 



Income Statement 

Note No. 2007 2006 

in EUR ‘000 in EUR ‘000 

Interest and interest-related income 1,066,134 822,741 

Interest and interest-related expenses - 817,558 - 569,594 

Net interest income (1) 248,576 253,147 

Risk provisions (2) - 81,537 - 77,931 

Net interest income after risk provisions 167,039 175,216 

Fee and commission income 141,908 124,733 

Fee and commission expenses - 49,214 - 45,749 

Net fee and commission income (3) 92,694 78,984 

Trading income (4) 16,978 8,456 

Income from designated financial instruments (5) 12,396 12,625 

Net investment income (6) 35,982 38,064 

Income from companies accounted for at equity 109,426 80,765 

Administrative expenses (7) - 250,663 - 242,355 

Other operating results (8) 71,220 67,068 

Pre-tax profit for the year 255,072 218,823 

Taxes on income and earnings (9) - 29,333 - 11,130 

Profit for the year 225,739 207,693 

Minority interests - 7,880 - 10,128 

Net profit 217,859 197,565 


81 

The Group

Balance Sheet 

82 

ASSETS Note No. 31 Dec 2007 31 Dec 2006 


Cash and cash equivalents (10), (11) 116,012 103,239 

Loans and advances to banks (10), (12), (14) 4,633,396 4,431,704 

Loans and advances to customers (10), (13), (14) 13,744,557 11,009,014 

Trading assets (10), (15) 536,872 511,285 

Financial assets (10), (16) 5,293,991 5,057,778 

Companies accounted for at equity (17) 625,406 514,447 

Intangible assets (18), (21) 1,719 3,126 

Property, plant and equipment (19), (21) 79,532 103,291 

Financial real estate (19), (21) 8,731 175,890 

Current tax assets (9) 28,295 17,071 

Deferred tax assets (9) 15,981 18,869 

Other assets (20) 182,597 205,785 

Total 25,267,089 22,151,499 

LIABILITIES Note No. 31 Dec 2007 31 Dec 2006 


Liabilities to banks (10), (22) 8.703.699 7.576.904 

Liabilities to customers (10), (23) 6.690.824 5.531.842 

Debt securities in issue (10), (24) 5.921.938 5.573.969 

Provisions (14), (25) 121.633 123.481 

Current tax liabilities (9) 12.909 10.459 

Deferred tax liabilities (9) 34.655 27.162 

Trading liabilities (10), (26) 531.795 413.221 

Other liabilities (27) 255.261 279.439 

Subordinated capital (10), (28) 1.294.971 1.207.349 

Equity (29) 1.699.404 1.407.673 

of which minority interests 79.420 76.697 

of which shareholder of the parent company 1.619.984 1.330.976 

Total 25.267.089 22.151.499 


Statement of Changes in Equity 

Sub- Cumuscribed 

Capital lative AfS Sub- Minority 

capital reserve results reserves total interests Total 

in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 

Equity 01 January 2007 

With no effect on the Income State- 

241,032 410,859 671,207 7,878 1,330,976 76,697 1,407,673 

ment in accordance with IAS 39 

Changes in equity in companies 

0 0 0 - 67,689 - 67,689 0 - 67,689 

accounted for at equity 0 0 - 17,079 0 - 17,079 - 3,517 - 20,596 

Other changes 

Taxes recognised with no effect 

0 0 - 78 0 - 78 0 - 78 

on the Income Statement 

Total of results recorded 

0 0 0 18,734 18,734 0 18,734 

directly under equity 0 0 - 17,157 - 48,955 - 66,112 - 3,517 - 69,629 

Profit for the year 0 0 217,859 0 217,859 7,880 225,739 

Total results for the year 0 0 200,702 - 48,955 151,747 4,363 156,110 

Dividends 0 0 - 12,726 0 - 12,726 - 1,640 - 14,366 

Capital increase/reduction 13,000 136,987 0 0 149,987 0 149,987 

Equity 31 Dec 2007 254,032 547,846 859,183 - 41,077 1,619,984 79,420 1,699,404 

Sub- Cumuscribed 

Capital lative AfS Sub- Minority 

capital reserve results reserves total interests Total 

in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 

Equity 01 January 2006 

With no effect on the Income State- 

241,032 410,859 487,605 39,176 1,178,672 65,667 1,244,339 

ment in accordance with IAS 39 

Changes in equity in companies 

0 0 0 - 39,763 - 39,763 0 - 39,763 

accounted for at equity 0 0 - 3,845 0 - 3,845 2,600 - 1,245 

Other changes 

Taxes recognised with no effect 

0 0 0 0 0 0 0 

on the Income Statement 

Total of results recorded 

0 0 0 8,465 8,465 0 8,465 

directly under equity 0 0 - 3,845 - 31,298 - 35,143 2,600 - 32,543 

Profit for the year 0 0 197,565 0 197,565 10,128 207,693 

Total results for the year 0 0 193,720 - 31,298 162,422 12,728 175,150 

Dividends 0 0 - 10,118 0 - 10,118 - 1,698 - 11,816 

Capital increase/reduction 0 0 0 0 0 0 0 

Equity 31 Dec 2006 241,032 410,859 671,207 7,878 1,330,976 76,697 1,407,673 

The item “changes in equity in companies accounted for at equity” includes all of the valuation results that are proportionately attrib uted 

to Raiffeisenlandesbank Oberösterreich Aktiengesellschaft and recorded under equity without affecting the balance sheet. They come for 

the most part from financial instruments in the category of “financial assets available for sale” (Afs) in companies accounted for at equity. 


83 

The Group

Cash Flow Statement 

84 



Profit for the year 

Non-cash items contained in the profit for the year and transferral 

to the cash flow from operating activities: 

Write-offs/write-ups of property, equipment and financial assets, 

225,739 207,693 

trading securities, intangible assets and financial real estate 58,964 75,055 

Reversal/allocation of reserves and risk provisions 

Profit/loss from sale of property, equipment and financial assets, 

86,069 67,670 

trading securities, intangible assets and financial real estate - 2,368 - 14,262 

Other adjustments due to non-cash items - 415,764 -345,891 

Subtotal 

Changes in operating assets and liabilities after correcting 

for non-cash components: 

- 47,360 - 9,735 

Loans and advances to banks and customers - 2,751,535 - 1,240,096 

Trading assets 589 55,356 

Other assets 33,587 - 114,149 

Liabilities to banks and customers 2,250,383 1,316,367 

Trading liabilities 17,494 4,159 

Debt securities in issue 363,516 595,501 

Other liabilities - 21,392 49,230 

Interest and dividends received 1,094,854 685,808 

Interest paid - 774,280 - 425,597 

Cash flow from operating activities 165,856 916,844 

Cash proceeds from the sale of: 

Financial assets and shares in companies 1,634,817 699,853 

Property and equipment, financial real estate and intangible assets 549 1,819 

Payments to acquire: 

Financial assets and shares in companies - 2,009,977 - 1,514,815 

Property and equipment, financial real estate and intangible assets - 10,231 - 12,282 

Cash flow from investing activities - 384,842 - 825,425 

Capital increase 149,987 0 

Income and payments from subordinated capital 96,138 - 16,209 

Dividends - 14,366 - 11,816 

Cash flow from financing activities 231,759 - 28,025 

Cash and cash equivalents at the end of the previous period 103,239 39,845 

Cash flow from operating activities 165,856 916,844 

Cash flow from investing activities - 384,842 - 825,425 

Cash flow from financing activities 231,759 - 28,025 

Cash and cash equivalents at the end of the period 116,012 103,239 

Cash includes the balance sheet item “cash reserves” which consists of the cash in hand and balances payable on demand at 

central banks, 


Notes 

THE COMPANY 

Raiffeisenlandesbank Oberösterreich Aktiengesellschaft acts 

as a regional central institution of the Raiffeisen Banking 

Group Upper Austria and is registered in the Commercial 

Register at the District Court in Linz under the number 

247579m. The headquarters are in Austria, at Europaplatz 

1a, 4020 Linz. 

Shareholders of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft 

are the “RLB Holding registrierte Genossenschaft 

m.b.H. OÖ” with a portion of the share capital amounting to 

48.81% (ordinary shares) and the registered cooperative asso - 

ciation “Raiffeisenbankengruppe OÖ Verbund” with 51.19% 

(preferred shares). The latter cooperative is the uppermost 

parent company of the Group. 

THE BASICS OF THE CONSOLIDATED ACCOUNTS ACCORDING TO IFRS 

Principles 

These consolidated financial statements for the 2007 financial 

year as well as the comparative figures from 2006 were 

prepared in compliance with the applicable International Financial 

Reporting Standards (IFRS) as published by the Inter - 

national Accounting Standards Board (IASB) and international 

accounting and financial reporting standards based on the IAS 

Regulation (EC) 1606/2002 as adopted by the EU. 

The Upper Austrian Raiffeisenbanks make up the most important 

owner groups of the two cooperatives. These two are supported 

by Raiffeisenlandesbank Oberösterreich Aktien gesellschaft 

(referred to below as Raiffeisenlandesbank Oberösterreich) in its 

func tion as Upper Austrian headquarters in all banking matters. 

As a superordinated banking institute, starting with the 2007 

finan cial year, Raiffeisenlandesbank Oberösterreich is obliged 

to prepare consolidated financial statements in accordance with 

the IAS Regulation (EC) 1606/2002, abiding by the regulations 

of the International Financial Reporting Standards (IFRS). In addition, 

notes and explanations are required in accordance with 

the national regulations of the Austrian Banking Act and the Austrian 

Business Code. 

The figures in these financial statements are quoted in EUR 

thousands. 

Not yet mandatory application of IFRS 

The following new or modified standards and interpretations 

were already published as at the balance sheet date, however, 

they have not yet come into effect and were not applied in 

these consolidated financial statements: 

Standard/Interpretation Mandatory for Already adopted 

financial year beginning by the EU 

IFRS 8 (“Business Segments”) 01 Jan 2009 yes 

Modification of IAS 23 (“Borrowing Costs”) 01 Jan 2009 no 

Modification of IAS 1 (“Presentation of the Financial Statements”) 

IFRIC 14 (“IAS 19 - The Limit on a Defined Benefit Asset, 

01 Jan 2009 no 

Minimum Funding Requirements and their Interaction”) 01 Jan 2008 no 

IFRIC 13 (“Customer Loyalty Programmes”) 01 July 2008 no 

IFRIC 12 (“Service Concession Arrangements”) 

IFRIC 11 (“IFRS 2 – Dealing with own shares and shares 

01 Jan 2008 no 

of Group companies”) 01 March 2007 yes 

No material effects are expected on future consolidated financial statements as a result of the application of the standards and 

interpretations listed. 


85 

The Group

First-time adoption of IFRS 

Raiffeisenlandesbank Oberösterreich is publishing consoli - 

dated financial statements for the 2007 financial year that have 

been prepared in accordance with the International Financial 

Reporting Stand ards for the first time and is therefore a firsttime 

adopter in the sense of IFRS 1. The transition time for 

the first-time adoption is 01 January 2006 so the information 

from the previous year that is quoted in the financial statements 

was gathered as required in accordance with IFRS. 

When preparing the IFRS opening balance, all IFRS that were 

valid on the balance sheet date are to be applied retrospectively. 

Adjustments that thus result from the application of previous 

accounting policies are to be charged directly to the reserves 

for accumulated results. 

Differences that were already charged to equity at the time of 

the firsttime adoption of the IFRS were not recorded. 

The group of fully consolidated companies according to IFRS 

is, in accordance with the terms of IAS 27, much broader than 

Reconciliation of equity to IFRS 

86 

the previous scope of consolidation according to the Austrian 

Business Code and the Austrian Banking Act. In accordance 

with § 59 in conjunction with § 30 of the Austrian Banking Act, 

the consolidation includes banks, financial institutions, securities 

companies and companies providing bank-related support 

services, while IAS 27 on the other hand does not exclude a 

subsidiary from full consolidation due to the fact that it exercises 

a different business than that of the group. 

As stipulated by the guidelines in IFRS 1, transition calculations 

show the equity and the result of the 2006 financial year abid - 

ing by the previously applied accounting practices (Austrian 

Business Code/Austrian Banking Act) in transition to the equity 

and the IFRS result in the same financial year, whereby important 

adjustments are to be explained separately. 

Additional explanations in this context concern important 

adjustments to the cash flow statement and information on 

the classification of financial instruments that were applied 

earlier. 

When determining the equity the following differences result between the application of the previous accounting principles 

(Austrian Business Code/Austrian Banking Act) and IFRS: 

01 Jan 2006 31 Dec 2006 


Subscribed capital 241,032 241,032 

Capital reserves 391,778 391,778 

Retained earnings (incl, net income for the year) 134,952 243,002 

Liabilities pursuant to § 23 (6) of the Austrian Banking Act 219,201 242,896 

Minority interests 35,143 36,026 

Untaxed reserves 11,283 10,714 

Fund for general banks risks 1,453 1,453 

Equity according to the Austrian Business Code/Austrian Banking Act (total) 1,034,842 1,166,901 

Adjustment due to change in the scope of consolidation 162,463 187,802 

Adjustment of the evaluation of financial instruments with effect on the Income Statement 980 17,624 

Available for sale reserves 39,176 7,878 

Provisions for personnel expenses - 23,195 - 22,097 

Other adjustments - 451 8,894 

Adjustments of minority interests 30,524 40,671 

IFRS equity (total) 1,244,339 1,407,673 


Reconciliation of the results to IFRS 

When determining the result the following differences emerge between the application of the previous accounting principles 

(Austrian Business Code/Austrian Banking Act) and IFRS: 

2006 

in EUR ‘000 

Austrian Business Code/Austrian Banking Act net profit after tax 141,295 

Adjustment due to change in the scope of consolidation 29,184 

Adjustment of the evaluation of financial instruments with effect on the Income Statement 16,643 

Provisions for personal expenses 1,098 

Other adjustments 9,345 

IFRS profit for the year 197,565 

Notes on material adjustments to the cash flow statement 

The cash flow statement in the consolidated financial statements according to the accounting principles of the Austrian Business 

Code and the Austrian Banking Act was already very similar to the terms of IAS 7 (“Cash flow statements”). However, differences 

did result because the scope of consolidation was different in the two kinds of financial statements – national compared to 

international accounting principles. 

Classification of previously determined financial instruments 

The following financial assets were assigned to the category of “designated financial instruments” at the time of the transition to 

IFRS (1 January 2006): 

Carrying amount Carrying amount 

ABC/ABA IFRS 


Loans and advances to banks 334,875 334,957 

Loans and advances to customers 343,279 355,554 

Financial assets 962,346 1,037,429 

Total 1,640,500 1,727,940 


87 

The Group

The following financial liabilities were assigned to the category of “designated financial instruments” at the time of the transition to 

IFRS (1 January 2006): 

88 


ABC/ABA IFRS 


Liabilities to banks 1,846,249 1,871,505 

Liabilities to customers 1,009,965 1,069,444 

Debt securities in issue 3,752,411 3,789,668 

Subordinated capital 510,921 542,436 

Total 7,119,546 7,273,053 

The following financial assets were assigned to the category of “financial assets available for sale” (AfS) at the time of the transition 

to IFRS (1 January 2006): 


ABC/ABA IFRS 


Financial assets 2,953,941 3,046,129 

Total 2,953,941 3,046,129 

The IFRS carrying amounts of AfS financial assets contain equity instruments held on 1 January 2006 in the amount of EUR 667,141k 

that are valued at historical cost because their fair value cannot be reliably determined. 


Consolidation methods 

The starting point for preparing the consolidated balance 

sheet and the group income statement is the sum of the 

separate financial statements of the subsidiaries included in 

the consolidated financial statements. Subsidiaries are companies 

on which Raiffeisenlandesbank Oberösterreich exercises 

a controlling influence on their business and financial policies. 

The separate financial statements of the fully consolidated 

subsidiaries are prepared in accordance with IFRS and are 

based on uniform accounting principles applied throughout 

the group. The balance sheet date of the fully consoli dated 

companies is 31 December with the exception of a few leasing 

companies and RB Prag Beteiligungs GmbH that are included 

as of 30 September. The selection of a date for these companies 

that differs from that of the parent company guarantees 

that the financial statements can be prepared and audited without 

delay. Two subsidiaries prepare their financial statements 

as at 28 February and 30 June and report as at 31 December 

with an IFRS interim report. 

In the course of the capital consolidation the carrying amounts 

of the shares in each subsidiary belonging to the parent company 

are calculated based on the trial balance with the proportionate 

equity of each subsidiary. When a subsidiary is acquired 

it is included as of the date of acquisition. The assets and liabilities 

acquired are recorded applying the revaluation method in 

accordance with IFRS 3 at their fair value. If there is a positive 

difference between the purchase price and the proportionate 

net assets in the acquired company it is to be reported as goodwill. 

Goodwill is not subject to scheduled depreciation but rather 

is subject to an annual impairment test according to IAS 36. 

Associates are companies where the group exercises a sig - 

nificant influence on business and financial policy. There is 

usually a significant influence when the holdings amount to 

between 20% and 50%. Material investments in associates 

are accounted for at equity and recorded in a separate balance 

sheet item. The proportionate profits and losses from com - 


panies accounted for at equity are also shown separately in 

the income statement. When applying the equity method the 

same basic approach is used in accounting for acquisitions 

as is used for a fully consolidated company. 

In the course of the debt consolidation, loans and advances 

within the group are set off against internal liabilities. Expenses 

and income resulting from transactions between companies in 

the full scope of consolidation are eliminated in the course of 

the expense and income consolidation. 

Consolidated companies 

The scope of consolidation was determined according to the 

terms of IAS 27, taking the principle of materiality into con - 

sideration. Materiality in this sense is determined according 

to criteria applied uniformly throughout the group, focussing on 

the effect of the inclusion or non-inclusion of a subsidiary on 

the representation of the group’s assets, financial position and 

profitability. Because of their minor significance for assets, 

financial position and profitability, 143 subsidiaries were not 

included and 62 associates were not accounted for at equity. 

For the IFRS financial statements as at 31 December 2007, the 

scope of consolidation of Raiffeisenlandesbank Oberösterreich 

includes 25 fully consolidated companies (incl. Raiffeisen - 

landesbank Oberösterreich). Seven additional companies were 

accounted for at equity. Of the 32 companies, 27 are based in 

Austria and 5 abroad. Of the fully consolidated companies, 5 

are banks, 6 are financial institutions and 14 other companies. 

The following list shows the material subsidiaries and as so - 

ciates. An overview of all holdings of the Raiffeisenlandesbank 

Oberösterreich Group (information according to § 265 (2) 

of the Austrian Business Code) has been prepared separately. 

This list is available at the headquarters of the parent company. 

Raiffeisenlandesbank Oberösterreich has, because of 

both a direct and an indirect holding, a clear majority vote in 

Salzburger Landes-Hypothekenbank AG. 

89 

The Group

90 

Name Share in % Balace sheet date 

Fully consolidated subsidiaries 

Raiffeisenlandesbank Oberösterreich Aktiengesellschaft Group parent 31 Dec 

Raiffeisen-IMPULS-Leasing GmbH 100.00% 30 Sept 

Raiffeisen-IMPULS-Mobilienleasing GmbH 100.00% 30 Sept 

Raiffeisen-IMPULS-Immobilien GmbH 100.00% 30 Sept. 

Raiffeisen-IMPULS-Realitätenleasing GmbH 100.00% 30 Sept 

Raiffeisen-IMPULS-Leasing GmbH & Co KG, Passau 100.00% 31 Dec 

PRIVAT BANK AG der Raiffeisenlandesbank Oberösterreich 100.00% 31 Dec 

SALZBURGER LANDES-HYPOTHEKENBANK AKTIENGESELLSCHAFT 49.98% 31 Dec 

Hypo Holding GmbH 70.00% 30 June 

RB Prag Beteiligungs GmbH 100.00% 30 Sept 

KEPLER-FONDS Kapitalanlagegesellschaft m.b.H. 64.00% 31 Dec 

Kapsch Financial Services GmbH 74.00% 30 Sept 

activ factoring AG, München 94.00% 31 Dec 

RVD Raiffeisen-Versicherungsdienst GmbH 75.00% 31 Dec 

GRZ IT Center Linz GmbH 96.19% 31 Dec 

LOGIS IT Service GmbH 73.10% 31 Dec 

RLB OÖ Sektorbeteiligungs GmbH 100.00% 31 Dec 

BHG Beteiligungsmanagement und Holding GmbH 100.00% 28 Feb 

INCOM Private Equity GmbH, Passau 100.00% 31 Dec 

Invest Holding GmbH 100.00% 31 Dec 

Invest Holding GmbH & Co KG 100.00% 31 Dec 

REAL-TREUHAND Management GmbH 100.00% 31 Dec 

RealRendite Immobilien GmbH 

IB-RT Immobilien Beteiligungs Real-Treuhand 

100.00% 31 Dec 

Portfoliomanagement GmbH & Co KEG 100.00% 31 Dec 

bankdirekt.at AG 100.00% 31 Dec 

Companies consolidated at equity 

Oberösterreichische Landesbank Aktiengesellschaft 34.01% 31 Dec 

Raiffeisenbank a.s., Prag 25.00% 31 Dec 

eBanka a.s., Prag 25.00% 31 Dec 

ZRB Beteiligungs GmbH 20.00% 31 Dec 

Österreichische Salinen Aktiengesellschaft 41.25% 30 June 

Beteiligungs- und Wohnungsanlagen GmbH & Co OEG 46.00% 31 Dec 

Raiffeisenlandesbank Oberösterreich Invest GmbH & Co OG 49.00% 30 Sept 

Changes in the scope of consolidation and their effects 

The number of fully consolidated companies accounted for at equity developed during the financial year as follows: 

Number of units Fully consolidated Equity method 

2007 2006 2007 2006 

As at 01 January 27 27 6 6 

Included for the first time during the reporting year 1 — 1 — 

De-consolidated during the reporting year 3 — — — 

As at 31 December 25 27 7 6 


ankdirekt.at AG was newly founded and included in the scope of consolidation of Raiffeisenlandesbank Oberösterreich for the 

first time in 2007. The shares in three subsidiaries, “LDZ” Landesdienstleistungszentrum Vermietungs GmbH, Passage Linz GmbH 

and Passage Linz GmbH & Co KG, were sold in December 2007 and the companies removed from the scope of consolidation. 

The number of companies accounted for at equity increased with the acquisition of a 25% share in eBanka a.s. in August 2007. 

The following table shows the assets and liabilities of the three companies that were de-consolidated at the time of their final 

consolidation: 

Disposals 

in EUR ‘000 

Cash and cash equivalents - 53 

Loans and advances to customers 180,322 

Trading assets 12,769 

Financial assets 13,443 

Intangible assets - 939 

Financial real estate - 179,859 

Tax assets - 52 

Other assets - 5,921 

Assets, total 19,710 

Liabilities to customers 2,969 

Provisions - 1 

Tax liabilities - 33 

Trading liabilities 745 

Other liabilities - 16,872 

Nets assets 32,902 

Minority interests 28 

Net assets including minority interests 32,930 

Sale price (in cash) 73 

Result from final consolidation 33,003 

Foreign currency translation 

Financial statements prepared in a foreign currency in foreign business operations must be converted to euros in accordance with 

the regulations of IAS 21. This applies to the two banks accounted for at equity that are headquartered in Prague, Raiffeisenbank 

a.s. and eBanka a.s., who use Czech korunas (CZK) as their currency. 


91 

The Group

ACCOUNTING POLICIES 

FINANCIAL INSTRUMENTS 

A financial instrument is a contract that is a financial asset for 

the first company and, at the same time, results in a financial 

liability or an equity instrument in the other company. In accordance 

with IAS 39, all financial assets and liabilities includ - 

ing all derivative financial instruments must be included in the 

balance sheet. A difference is made between the following 

categories: 

■ Financial assets or liabilities that are assessed at fair value 

with an effect on income; and this category is subdivided 

into: 

❑ Financial instruments held for trading 

❑ Designated financial instruments 

■ Financial assets available for sale 

■ Financial investments held to maturity 

■ Loans and receivables 

■ Financial liabilities that are assessed to continued acqui - 

sition costs 

The purchase and sale of financial instruments is always balanced 

on the day of trading. 

The stock exchange prices are used to determine the fair 

value of financial instruments listed on the stock exchange 

(with the exception of bonds). Bonds and other financial 

instruments are valued based on market-maker prices. If these 

prices are not available, for originative financial instruments 

and forward transactions internal prices are determined based 

on cash value calculations assuming own spread of creditworthiness 

and liquidity and for options using applicable options 

price models. 

Financial instruments held for trading 

The category “financial instruments held for trading” includes 

dealing securities and derivative financial instruments. They 

are assessed at fair value. The financial instruments in this 

category are used to take advantage of short-term price fluctuations 

on the market or are purchased for the purpose of 

economic security. 

If there are positive market values including deferred interest 

(“dirty price”), the financial instruments are included in the 

trading assets. 

92 

If there are negative market values then they are recorded 

under the balance sheet item of “trading liabilities”. There is no 

settlement of positive and negative market values. Interest and 

dividend income, refinancing costs, commisions and changes 

in value of dealing securities are recorded as part of the trad - 

ing result with effect on the Income Statement Changes in the 

value of derivatives effect the income statement and are shown 

in the results of designated financial instruments. Interest payments 

connected with such financial instruments are included 

in the interest income or interest expenses from designated 

financial instruments in the net interest income. 

Designated financial instruments 

Designated financial instruments refer to those financial assets 

and liabilities that, at the point in time that they are first stated in 

the balance sheet, are categorised or designated as a fair value 

assessment with effect on the balance sheet (the so-called 

fair value option). Such a categorisation can only be made if: 

■ The categorisation eliminates or considerably decreases 

incongruencies in the assessment or the approach, 

■ The management and the performance measurement of a 

portfolio of financial assets and /or financial liabilities are 

done on a fair value basis according to a documented risk 

management or investment strategy, 

■ A contract contains an embedded derivative that must be 

separated. 

The following balance sheet items contain designated financial 

instruments: 

■ Loans and advances to banks 

■ Loans and advances to customers 

■ Financial assets 

■ Liabilities to banks 

■ Liabilities to customers 

■ Liabilities evidenced by certificates 

■ Subordinated capital 

These financial instruments are evaluated at fair value, unreal 

ised and realised profits and losses are recorded with 

effect on the income statement as income from designated 

financial instruments. Interest Income or expenses from 

designated financial instruments are recorded under the net 

interest income. 


Financial assets available for sale (AfS) 

These include bonds and other fixed-income securities, shares 

and other variable-interest securities as well as shares in companies. 

Financial asset in this category are evaluated in accordance 

with IAS 30 at fair value. The balance sheet value is recorded 

under the balance sheet item “financial assets,” changes in 

the fair value are shown without effect on the income statement. 

Changes in value that are recognised directly in the 

equity are transferred to the income statement if the financial 

asset in questions is derecognised. The same applies in the 

case of impairment; the difference between the fair value and 

the cost of purchase (less any repayments and amortisation) 

is to be recorded with effect on the income. If the reasons for 

impairment no longer apply a reversal of the impairment loss 

is to be carried out with effect on the income statement if it 

is a debt capital instrument. However, any increases in fair 

value that go beyond the amount of the reversal of the 

impairment loss are recorded with no effect on the income 

statement. If an equity instrument is held, the impairment is 

not retracted with effect on the income statement. Increases 

in value in later periods are therefore accounted for with no 

effect on the income statement. If the fair value of an equity 

instrument held cannot be reliably determined at the cost of 

purchase is used. 

Financial investments held to maturity (HtM) 

This category contains non-derivative financial assets with 

fixed or determinable payments and a fixed term, that are 

quoted on an active market and held to maturity, with the exception 

of those financial assets that are evaluated and desig - 

nated at the initial recognition with effect on the income 

statement and those that are determined as being available 

for sale. Financial assets in this category are evaluated with 

the carried forward acquisition costs. Impairment in the sense 

of IAS 39 is recorded with effect on the income statement. 

Financial investments that are included in this category are 

listed under the balance sheet item “financial assets”. 


Loans and receivables 

Financial assets in the category “loans and receivables” are 

evaluated as carry forward acquisition costs as long as they are 

not placed in the category of “designated financial instruments”. 

They are mainly recorded under the balance sheet items “loans 

and advances to banks” and “loans and advances to customers”. 

Risk provisions: 

Risk provisions have been made for recognisable risks among 

borrowers. A dynamic approach was used to evaluate the loan 

transactions. For some loans, standardised, defined risk provisions 

were formed in the shape of dynamic risk provisions, 

on the basis of risk groups in accordance with the "risk 

management" rating model. The amount of the credit risk provision 

that applies to the financial loans including the value 

adjustments and the portfolio-based revaluations is subtracted 

from the applicable loans. The risk provision for commitments 

similar to loans is booked as provisions. 

Financial liabilities that are evaluated with the carried 

forward acquisition costs 

If financial instruments on the liabilities side are neither "finan - 

cial instruments held for trading" nor from the category of 

"designated financial instruments" they are evaluated as carry 

forward acquisition costs. They are mainly recorded under the 

balance sheet items “amounts owed to banks”, “amounts owed to 

customers”, “debt securities in issue” or “subordinated capital”. 

Repurchase transactions 

In the course of real repurchase transactions (repo) the group 

sells assets to a contract party, at the same time agreeing to 

buy them back on a certain date at a certain price. These assets 

remain on the group’s balance sheet and are evaluated 

according to the rules of the various balance sheet items. 

At the same time, an obligation in the amount of the payment 

received is shown on the liabilities side. 

93 

The Group

In a reverse repo transaction assets are purchased together 

with the obligation to sell in future for a certain price. The cash 

outflow from the purchase is recorded under the balance 

sheet items loans and advances to banks or loans and advances 

to customers. Interest expenses from repo transactions 

and interest income from reverse repo transactions are 

accrued by the straight-line method throughout the term and 

recorded under net interest income. 

For non-real repurchase transactions the debtor bank has the 

obligation to take the assets back but it does not have the right 

to demand them back. The creditor bank makes the decision 

alone as to whether it wants a retrocession. 

Leasing transactions 

The group differentiates between finance leases and operat - 

ing leases. According to IFRS, a finance lease is essentially 

when the risks associated with the property and the opportuni - 

ties of an asset are transferred to the lessee. An operating 

lease is a lease that is not a financing lease. For the evaluation, 

substance over form is decisive. 

In accordance with IAS 17, when financing leases the lessor 

records the future leasing payments and any remaining amounts 

as loans and advances to lessees. The lessee at the 

same time records the assets under the respective item of 

property, plant and equipment balanced by a corresponding 

leasing liability. 

With operating leases, the leasing contracts are recognised 

with an effect on income by both the lessee and the lessor. 

The lessor capitalised the asset being leased less the amount 

of depreciation. 

Intangible assets 

The paid acquisition of intangible assets is accounted for at 

the historical cost less depreciation and impairment. All 

intangible assets (except goodwill) exhibit a limited useful life 

and are subject to linear depreciation over this period. The 

usual useful life ranges from 2 to 20 years. There were no selfproduced 

intangible assets to be recorded upon the balance 

sheet date. 

Property, plant and equipment and financial real estate 

The assessment of property, plant and equipment occurs 

at their historical or production costs less depreciation. The 

following terms of useful life are usually taken as the basis for 

straight-line depreciation: 

Useful life expectancy Years 

Movable assets 3 – 20 

Immovable assets 20 – 67 

In the event of impairment, the greater of the two comparable 

values (fair value less the cost of disposal and value in use) are 

amortised pursuant to IAS 36. If the reasons for impairment 

cease, then appreciation up to the historical cost carried 

forward shall occur. The real estate objects held as financial 

investments (financial real estate) are also assessed according 

to the respective electoral law in IAS 40 in accordance with 

the historical or production costs carried forward. 

Provisions 

All social provisions (provisions for pension obligations, sever - 

ance obligations and bonuses) are determined pursuant to 

IAS 19 – Employee Benefits – following the ‘projected unit 

credit method’. 

A valuation interest rate of 5.0% p.a. (previous year: 4.5%) 

as well as an effective pensionable salary increase of 4.0% p.a. 

(previous year: 3.5%) shall form the basis of the actuarial 

calcu lation of pension obligations for the entitlement phase. 

The parameters for the working periods are calculated at an 

interest rate of 4.75% p.a. (previous year: 4.0% p.a.) and an un - 

changed anticipated pension increase of 3.5% p.a. The calcu - 

lations are based on a calculative pensionable age of 60 for 

women and 65 for men with adherence to the legal transitional 

regulations as well as individual contractual particularities. 

The actuarial calculation of severance obligations and bonuses 

shall occur using a valuation interest rate of 5.0% p.a. (previous 

year: 4.5% p.a.) and an average salary increase of 

4.0% p.a. (previous year: 3.5% p.a.). A fluctuation deduction 

of 5.0% p.a. is accounted for. 


The actuarial profits and losses in the case of social pro visions 

are immediately recognised with effect on the income and 

shown under personnel expenses. 

Further provisions are made for contingent liabilities towards 

third parties at the amount of anticipated utilisation. If interest 

rates play a significant role, then the rates of such provisions 

shall be reduced and assessed at their cash value. 

Defined contribution plans 

Pursuant to IAS19, the defined contribution plans are to be 

distinguished from the performance-oriented plans – for which 

provisions for pensions and severance payments must be 

made. In the context of such plans, specified payments are 

made to an independent institution (pension fund, employee 

provision fund). Within this scheme, the company only guarantees 

the contributions, not the amount of the later benefits. 

These payments are effectively recognised as personnel expenses. 

Taxes on income 

Taxes on income are accounted for in accordance with IAS 12. 

Deferred taxes based on the country-specific tax rates are calcu 

lated for temporary differences that result from the settlement 

of consolidated book value and tax values, which balance out 

in the following period. Tax losses carried forward are re - 

corded as deferred taxes under assets if it seems probable 

that there will be taxable profits in the future in a similar amount 

in the same company. Deferred tax assets are set off against 

deferred tax liabilities for each subsidiary separately. 

Raiffeisenlandesbank Oberösterreich, as head of the group, has 

formed a corporate group with diverse financially affiliated companies 

in the sense of § 9 of the Corporation Tax Act since 2005. 


Trust fund transactions 

Business operations based on the administration or placement 

of assets for third party accounts are not shown on the 

balance sheet. Commission payments from these operations 

are shown under net commission income. 

Net interest income 

Interest and interest-related income includes, on the one hand, 

interest income from loans and advances to customers and 

banks as well as fixed-interest securities. On the other hand, 

it includes current earnings from shares and variable interest 

securities as well as from holdings and non-consolidated 

companies, for example in the form of dividend payments. 

Interest expenses mostly arise in connection with amounts 

owed to customers, banks, debt securities in issue and sub - 

ordinated capital. 

Interest income and expenses are subject to accrual accounting, 

dividends are recognised as soon as legal entitlement 

arises. 

Proportional profit or loss from companies balanced at equity, 

and regular income and expenses in connection with trading 

assets and liabilities which were not acquired for the purpose 

of economic security, are not shown under net interest income, 

but rather under individual profit and loss positions. 

Risk provisions 

In the context of this item on the income statement, the building 

and the release of risk positions (revaluations and reserves for 

the lending business) are shown. Direct write-offs and retro - 

active payments to loans that have already been written off are 

also included in this item. 

95 

The Group

Net fee and commission income 

Net fee and commission income is the result of the expenses 

and income accrued approbiate to the period in connection 

with the services business. This mainly includes payment trans - 

actions, foreign exchange, currency and precious metal transactions, 

the securities business, and loan processing and the 

financial guarantee business. 

Net income from investments 

Net income from investments shows the profits and losses 

recorded with an effect on the income statement, both unrealised 

(the result of the valuation) and realised (from the disposal), 

from securities that are listed under financial assets in 

the category of “financial investments held to maturity” and 

“financial assets available for sale” (AfS). Profits and losses 

from the available-for-sale assets that are recorded directly 

under equity or that were transferred from equity to the income 

statement can be found under their own heading in the Notes. 

In addition, net income from investments also includes the net 

income from the valuation and disposal of assets of affiliated 

companies and other holdings that are neither fully consolidated 

nor accounted for at equity. These are, due to a lack of 

reliable information on their fair value, assessed at historical 

cost less any impairment, so that no changes in the valuation 

(without effect on the income statement) are recorded. 

Income from designated financial instruments 

Unrealised and realised profits and losses in conjunction with 

designated financial instruments that are recorded on the balance 

sheet under financial assets are not shown as net income from 

investment but rather in a separate item on the income state- 

ment called “income from designated financial instruments”. 

The latter item also includes the net income from valuation 

and sale of all other designated financial instruments and de - 

rivatives. 

Administrative Expenses 

The general administrative expenses include personnel and 

operating expenses as well as depreciation and impairment 

of property, plant and equipment, financial real estate and 

intangible assets. 

Exercising judgement and making estimates 

For the consolidated financial statements, a certain amount of 

judgement must be used when applying the accounting policies 

and, to a certain extent, estimations and assumptions must be 

made that influence the accounts of the assets and liabilities, 

the declaration of contingent liabilities on the balance sheet date 

and the report on expenses and income during the reporting period. 

When applying the accounting policies the management exercises 

judgement, keeping in mind the goal of the financial state - 

ments to provide meaningful information about the company’s 

assets, financial position and profitability as well as about any 

changes in the assets, financial position or profitability of the 

company. 

The main areas effected by assumptions and estimates are the 

determination of the fair value of some financial instruments, 

balancing risk positions for future bad debt or a drop in interest 

rates, building provisions for obligations, severance payments 

and long-term service bonuses, other provisions and determin - 

ing the useful life of long-term assets. The amounts that actually 

turn up may be different from the estimates. 


SEGMENT REPORTING 

The segment reporting is based on the internal market segment 

calculation, in accordance with IAS 14. This is a gradu ated 

breakeven analysis that illustrates customer respon si bility 

within the Raiffeisenlandesbank Oberösterreich Group. When 

dividing up the segments, care was taken to combine in one 

segment activities that show for the most part a homogenous 

structure of opportunities and risks. 

Income and expenses are always assigned to the segment 

that caused them. Net interest income is calculated using the 

market interest rate method. The interest benefit from the 

equity is assigned to the segments based on the regulatory 

capital requirements. The general administrative expenses 

include direct and indirect costs. The direct costs (personnel 

and material costs) are the responsibility of the market segments, 

the indirect costs are assigned based on certain keys. 

The results per segment also include results from transactions 

with other segments. The assessment of services exchanged 

between the segments is always done at market price, the 

segments are positioned to each other like external suppliers. 

The segment reporting is divided into the following four segments: 

Corporates and Retail 

Here all of Raiffeisenlandesbank Oberösterreich’s business 

relations are bundled together that are exposed to a counterparty 

risk. Thus, this segment includes the business areas corporate 

customers, groups, SME support, major institutional 

customers, international finance and correspondent banking 

as well as the retail business in Raiffeisenlandesbank Ober - 

österreich’s branches in Linz and Traun. 



The Financial Markets segment includes the results of the 

trading areas (money, foreign exchange, stocks and bonds), 

the treasury results from interest-rate management and hedg - 

ing with customers and from the management of the banking 

book, as well as the income from services arising from the 

area of securities sales. In the trading areas, customer business 

takes priority over in-house trading and this is reflected in the 

high portion of income from services. 


The invest banking segment includes in particular Raiffeisen 

landesbank Oberösterreich’s bank and financial insti - 

tution oriented holding portfolio. In addition, aside from the 

most import ant fully consolidated subsidiaries, this segment 

also includes subsidiaries and other holdings from other 

business branches that are accounted for at equity or at 

historical cost. 


This includes revenue and yields where the content does not 

fit into any other segment. One-time special effects that would 

distort the various segment results are also recorded here 

when applicable. 

A segmentation according to geographic criteria was not made 

because the companies of the Raiffeisenlandes bank Oberösterreich 

Group do business for the most part in a single 

homogenous economic region. 

97 

The Group

Segment reporting 2007 

98 

Corporates Financial Invest Corporate 

& Retail Markets Banking Center Total 

in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 in EUR ‘000 

Net interest income 134,365 4,156 93,697 16,358 248,576 

Risk provisions - 51,729 0 - 29,808 0 - 81,537 

Net interest income after risk provisions 82,636 4,156 63,889 16,358 167,039 

Net fee and commission income 32,131 28,176 32,158 229 92,694 

Trading income 684 13,357 2,937 0 16,978 

Income from designated financial instruments 0 7,762 4,634 0 12,396 

Net investments income 0 11,499 24,483 0 35,982 

Income from companies accounted for at equity 0 0 109,426 0 109,426 

Administrative expenses - 87,085 - 20,114 - 128,283 - 15,181 - 250,663 

Other operating results 323 447 68,823 1,627 71,220 

Profit before tax 28,689 45,283 178,067 3,033 255,072 

Segment reporting 2006 

Corporates Financial Invest Corporate 

& Retail Markets Banking Center Total 


Net interest income 114,293 33,467 88,949 16,438 253,147 

Risk provisions - 41,790 0 - 36,141 0 -77,931 

Net interest income after risk provisions 72,503 33,467 52,808 16,438 175,216 

Net fee and commission income 28,502 24,449 25,810 223 78,984 

Trading income 679 11,217 - 3,440 0 8,456 

Income from designated financial instruments 0 273 12,352 0 12,625 

Net investments income 0 6,719 31,345 0 38,064 

Income from companies accounted for at equity 0 0 80,765 0 80,765 

Administrative expenses - 82,039 - 19,665 - 122,390 - 18,261 - 242,355 

Other operating results 1,633 - 2,611 64,871 3,175 67,068 

Profit before tax 21,278 53,849 142,121 1,575 218,823 


NOTES TO THE INCOME STATEMENT 

1. Net interest income 



Interest income 

from financial instruments in the category 

“loans and receivables” 


716,604 436,870 

“available for sale” 


104,024 71,077 

“held to maturity” 4,297 6,901 

Subtotal 824,925 514,848 

from designated financial instruments 112,438 180,431 

from lease financing 25,426 18,097 

Total interest income 962,789 713,376 

Regular income 

from shares and other variable-yield securities 42,952 40,779 

from investments in affiliated companies 9,079 23,771 

from other investments 46,888 40,988 

Regular income 98,919 105,538 

Other interest-related income 4,426 3,827 

Interest and interest-related income 1,066,134 822,741 

Interest expenses 

financial liabilities that are evaluated with the 

carried forward acquisition costs - 549,456 - 469,954 

for designated financial instruments - 265,901 - 89,799 

Total interest expenses - 815,357 - 559,753 

Other interest-related expenses - 2,201 - 9,841 

Interest and interest-related expenses - 817,558 - 569,594 

Net interest income 248,576 253,147 


99 

The Group

2. Risk provisions 

3. Net fee and commission income 

100 



Allocation to risk provisions for loans and advances - 173,949 - 147,383 

Release of risk provisions 91,413 59,661 

Direct write-offs - 1,069 -1,339 

Amounts received against loans and advances written off 2,068 11,130 

Total - 81,537 - 77,931 



from payment transactions 17,528 15,651 

from financing transactions 11,422 9,573 

from securities business 53,592 44,421 

from foreign exchange, currency and precious metals transactions 5,907 5,298 

from other service business 4,245 4,041 

Total 92,694 78,984 


4. Trading income 



Interest-rate related business 6,262 6,191 

Currency related business 8,302 1,103 

Stock and index related business 3,737 3,168 

Other business - 1,323 - 2,006 

Total 16,978 8,456 

5. Income from designated financial instruments 

Net profit/loss from designated financial instruments 



and derivatives 12,396 12,625 

6. Net investment income 

Securities in the category “held to maturity” 



Net result from valuation - 261 - 155 

Net result from disposal 26 1 

Securities in the category “available for sale” 

Net result from the valuation 0 0 

Net result from disposal 7,037 25,067 

Shares in companies in the category “available for sale” 

Net result from valuation - 3,927 12,738 

Net result from disposal 104 413 

Result from final consolidation 33,003 0 

Total 35,982 38,064 


101 

The Group

7. Administrative Expenses 

Personnel expenses 

Breakdown of expenses for defined contribution plans for severance and pension payments: 

102 



Wages and salaries - 101,457 - 94,249 

Compulsory social security contributions - 25,033 - 25,324 

Voluntary social security contributions - 2,258 - 2,255 

Expenses on severance payments and pensions - 4,533 - 10,111 

Operating expenses 

Rent and leasing expenses - 9,888 - 9,850 

Room expenses (operation, maintenance, administration) - 26,529 - 23,661 

IT and communications - 12,795 - 12,598 

Legal and consulting expenses - 7,321 - 6,629 

Advertising and representation expenses - 15,144 - 14,182 

Other material expenses 

Depreciation of property, plant and equipment, financial real estate 

and intangible assets 

- 24,894 - 21,255 

Property, plant and equipment - 14,500 - 15,877 

Financial real estate - 5,518 - 5,648 

Other intangible assets - 793 - 716 

Total - 250,663 - 242,355 



Pension fund - 1,364 - 2,347 

Employee pension fund - 154 - 104 

Expenses for defined contribution plans - 1,518 - 2,451 


8. Other operating results 

Other operating income 



Income from non-bank activities 136,048 131,000 

Remaining operating income 34,100 26,898 

Other operating expenses 

Expenses from non-bank activities - 24,511 - 24,070 

Other taxes and fees - 2,289 - 1,091 

Remaining operating expenses - 72,128 - 65,669 

Total of other operating result 71,220 67,068 

9. Taxes on income and earnings 



Current taxes on income and earnings - 3,280 - 6,218 

of which domestic - 3,288 - 6,207 

of which foreign 8 - 11 

Deferred taxes - 26,053 - 4,912 

Total - 29,333 - 11,130 

The following calculation of translation reserves shows the relationship between the profit for the year and the actual tax burden: 



Pre-tax profit for the year 

Income tax expense expected for the financial year 

255,072 218,823 

at the statutory tax rate (25%) 63,768 54,706 

Tax reductions due to tax-exempt earnings of investments - 17,693 - 22,493 

Tax reductions due to at-equity profit - 20,584 - 17,103 

Tax reductions due to tax-exempt other earnings - 1,631 -1,892 

Tax increase due to non-deductable expenses 2,971 2,708 

Tax credit/burden from previous years 4,147 962 

Effect of deviating foreign tax rates - 471 - 2,820 

Change in the usability of losses carried forward 0 0 

Other - 1,174 - 2,938 

Actual tax burden 29,333 11,130 


103 

The Group

Tax assets 

104 



Current tax assets 28,295 17,071 

Deferred tax assets 

of which deferred tax assets from tax losses carried forward 

15,981 18,869 

that have not yet been utilised 6,910 6,675 

Total 44,276 35,940 

Development of tax liabilities 

Current taxes Deferred taxes 



As at 01 January 10,459 4,131 27,162 21,027 

Allocations 2,601 6,329 8,815 6,953 

Reversals - 151 0 - 1,322 - 818 

Utilised 0 - 1 0 0 

As at 31 December 12,909 10,459 34,655 27,162 


Temporary differences between the valuation rates in the IFRS consolidated financial statements and the tax valuation rates have 

the following effect on the deferred taxes recorded on the balance sheet: 

Deferred Deferred With effect 

tax tax on the income 

assets liabilities statement in 

2007 2007 2007 

in EUR ‘000 in EUR ‘000 in EUR ‘000 

Financial assets of the category “available for sale” 2,940 10,616 - 7,533 

Designated financial instruments and derivatives - 1,577 1,883 - 10,816 

Shares in companies 2,217 - 11,876 3,893 

Leasing transactions 79 25,775 - 4,946 

Social capital provisions - 287 6,536 - 1,950 

Risk provisions 3,897 - 4,212 - 1,281 

Other provisions 1,640 -23 1,045 

Tax losses carried forward, not yet utilised 6,910 2,211 -391 

Other temporary differences 162 3,745 - 4,074 

Total 15,981 34,655 - 26,053 

Deferred Deferred With effect 

tax tax on the income 

assets liabilities statement in 

2006 2006 2006 


Financial assets of the category “available for sale” - 3,551 11,005 - 11,481 

Designated financial instruments and derivatives 5,485 2,513 6,731 

Shares in companies 1,266 - 8,935 1,078 

Leasing transactions 647 21,397 - 4,278 

Social capital provisions - 115 5,260 -739 

Risk provisions 4,642 - 4,750 607 

Other provisions 591 -824 - 4,097 

Tax losses carried forward, not yet utilised 6,675 533 6,013 

Other temporary differences 3,229 963 1,254 

Total 18,869 27,162 - 4,912 


105 

The Group

NOTES TO THE BALANCE SHEET 

10. Financial instruments disclosures 

Categories of financial assets and financial liabilities as at 31 December 2007 

106 

ASSETS 

Financial Designated 

instruments financial 

held for trading instruments 


Cash and cash equivalents 0 0 

Loans and advances to banks 0 606,922 

Loans and advances to customers 0 583,040 

Trading assets 536,872 0 

Financial assets 0 1,315,185 

Carrying amount total as at 31 Dec 2007 536,872 2,505,147 

The fair value carrying amounts in the category “Assets available for sale (Afs)” contain equity instruments in the amount of 

EUR 813,092k that are valued at the cost of purchase because their fair value cannot be reliably determined. 


LIABILITIES instruments financial 



Liabilities to banks 0 1,742,916 

Liabilities to customers 0 975,420 

Debt securities in issue 0 3,656,504 

Trading liabilities 531,795 0 

Subordinated capital 0 506,011 

Carrying amount total as at 31 Dec 2007 531,795 6,880,851 

Because there was no significant change to the rating at Raiffeisenlandesbank Oberösterreich, fair value changes of designated 

financial liabilities were due to changes in market circumstances. The credit exposure for these designated liabilities as at 31 December 

2007 was EUR 6,880,851k. 


Financial assets Financial assets Loans Carrying amount Fair Value 

available held to and total total 

for sale maturity receivables as at 31 Dec 2007 as at 31 Dec 2007 


0 0 116,012 116,012 116,012 

0 0 4,026,474 4,633,396 4,617,780 

0 0 13,161,517 13,744,557 13,766,879 

0 0 0 536,872 536,872 

3,891,020 87,786 0 5,293,991 5,294,977 

3,891,020 87,786 17,304,003 24,324,828 24,332,520 

The amount of the change in fair value of designated loans and receivables that was due to changes in ratings in 2007 was 

EUR - 265k (aggregate EUR 1,884k). This figure was obtained by applying the credit spread changes based on rating changes. 

The credit exposure for these designated loans and receivables as at 31 December 2007 was EUR 1,189,962k. 

Financial liabilities Total Total 

valued at carrying amount fair Value 

carried forward as at as at 

acquisition cost 31 Dec 2007 31 Dec 2007 


6,960,783 8,703,699 8,661,667 

5,715,404 6,690,824 6,662,209 

2,265,434 5,921,938 5,916,523 

0 531,795 531,795 

788,960 1,294,971 1,286,741 

15,730,581 23,143,227 23,058,935 

The carrying amount of designated financial liabilities as at 31 December 2007 was EUR 178,594k less than the repayment sum 

contractually agreed on. 


107 

The Group

Categories of financial assets and financial liabilities as at 31 December 2006 

108 

ASSETS 


instruments financial 



Cash and cash equivalents 0 0 

Loans and advances to banks 0 480,587 

Loans and advances to customers 0 442,576 

Trading assets 511,285 0 

Financial assets 0 1,166,718 

Carrying amount total as at 31 Dec 2006 511,285 2,089,881 

The fair value carrying amounts in the category “Assets available for sale (Afs)” contain equity instruments in the amount of 

EUR 758,430k that are valued at the cost of purchase because their fair value cannot be reliably determined. 


LIABILITIES instruments financial 



Liabilities to banks 0 1,623,514 

Liabilities to customers 0 966,299 

Debt securities in issue 0 3,823,574 

Trading liabilities 413,221 0 

Subordinated capital 0 588,997 

Carrying amount total as at 31 Dec 2006 413,221 7,002,384 

Because there was no significant change to the rating at Raiffeisenlandesbank Oberösterreich, fair value changes of designated 

financial liabilities were due to changes in market circumstances. The credit exposure for these designated liabilities as at 31 December 

2006 was EUR 7,002,384k. 


Financial assets Financial assets Loans Carrying amount Fair Value 

available held to and total total 

for sale maturity receivables as at 31 Dec 2006 as at 31 Dec 2006 


0 0 103,239 103,239 103,239 

0 0 3,951,117 4,431,704 4,423,100 

0 0 10,566,438 11,009,014 11,066,149 

0 0 0 511,285 511,285 

3,789,753 101,307 0 5,057,778 5,059,896 

3,789,753 101,307 14,620,794 21,113,020 21,163,669 

The amount of the change in fair value of designated loans and receivables that was due to changes in ratings in 2006 was 

EUR 2,670k. This figure was obtained by applying the changes in credit spread due to rating changes. The credit exposure for 

these designated loans and receivables as at 31 Dec 2006 was EUR 923,163k. 

Financial liabilities Total Total 

valued at carrying amount fair Value 

carried forward as at as at 

acquisition cost 31 Dec 2006 31 Dec 2006 


5,953,390 7,576,904 7,566,952 

4,565,543 5,531,842 5,512,163 

1,750,395 5,573,969 5,576,556 

0 413,221 413,221 

618,352 1,207,349 1,202,599 

12,887,680 20,303,285 20,271,491 

The carrying amount of designated financial liabilities as at 31 December 2006 was EUR 54,559k less than the repayment sum 

contractually agreed on. 


109 

The Group

The following derivative financial instruments existed on the 2007 balance sheet date: 

110 


Interest rate derivatives 

OTC products 





Forward rate agreements 1,500,000 2,265,350 0 3,765,350 7,158 6,748 

Interest rate swaps 5,188,524 8,670,894 13,948,613 27,808,031 295,578 424,602 

Interest rate options – purchases 4,000 609,497 410,227 1,023,724 8,400 41 

Interest rate options – sales 95,539 1,709,154 1,499,272 3,303,965 1,305 25,505 



Interest rate options – purchases 5,178 0 0 5,178 0 0 


Total 6,802,674 13,289,121 15,927,999 36,019,794 312,441 456,896 


OTC products 

Spot exchange and 

forward transactions 


1,169,508 4,488 0 1,173,996 5,537 6,685 




Total 

Other futures 

OTC products 

4,391,534 849,690 108,816 5,350,040 50,622 41,416 






Total 146,210 283,577 160,421 590,208 34,654 33,483 



11,325,807 14,388,162 16,127,349 41,841,318 397,717 531,795 


Total 11,340,418 14,422,388 16,197,236 41,960,042 397,717 531,795 


The following derivative financial instruments existed on the 2006 balance sheet date: 


Interest related derivatives 

OTC products 





Forward rate agreements 20,440 568,862 20,440 609,742 5,362 163 

Interest rate swaps 3,805,986 6,036,232 8,043,306 17,885,524 267,111 334,249 

Interest rate options – purchases 14,860 480,422 1,186,589 1,681,871 5,409 1,698 

Interest rate options – sales 53,127 892,167 1,478,848 2,424,142 2,567 14,402 



Interest rate options – purchases 0 0 10,635 10,635 0 0 


Total 3,897,326 7,999,513 10,820,887 22,717,726 280,449 350,512 


OTC products 

Spot exchange 

and forward transactions 


407,711 1,972 0 409,683 2,662 2,648 




Total 

Other futures 

OTC products 

2,926,039 230,197 61,204 3,217,440 35,578 29,737 






Total 69,330 303,362 200,358 573,050 32,676 32,972 



6,889,782 8,511,242 10,990,745 26,391,769 348,703 413,221 


Total 6,892,695 8,533,072 11,082,449 26,508,216 348,703 413,221 


111 

The Group

11. Cash and cash equivalents 

12. Loans and advances to banks 

13. Loans and advances to customers 

112 

31 Dec 2007 31 Dec 2006 


Cash in hand 34,727 33,576 

Balances at central banks 81,285 69,663 

Total 116,012 103,239 



Loans and advances payable on demand 1,406,973 813,824 

Money market transactions 1,875,874 2,347,002 

Loans to banks 1,328,463 1,263,706 

Purchased loans and advances 22,086 7,172 

Total 4,633,396 4,431,704 

In Austria 3,329,668 3,549,256 

Abroad 1,303,728 882,448 

Total 4,633,396 4,431,704 

31 Dec 2007 31.12.2006 



Loan transactions 10,771,967 8,617,536 

Mortgage 478,002 519,980 

Covering loans 229,696 241,343 

Purchased loans and advances 175,999 187,991 

Lease financing 372,517 343,625 

Other 3,866 0 

Total 13,744,557 11,009,014 

In Austria 9,270,546 7,829,678 

Abroad 4,474,011 3,179,336 

Total 13,744,557 11,009,014 


14. Risk provisions 2007 

As at Alloca- As at 

01 Jan 2007 tions Reversals Utilised 31 Dec 2007 


Loans and advances to banks 5,583 0 948 1,116 3,519 

of which domestic 2,249 0 22 1,116 1,111 

of which foreign 3,334 0 926 0 2,408 

Loans and advances to customers 388,225 148,142 82,005 34,618 419,744 

of which domestic 290,358 123,687 66,063 22,280 325,702 

of which foreign 97,867 24,455 15,942 12,338 94,042 

Revaluations in the portfolio 40,801 15,571 0 0 56,372 

Subtotal 434,609 163,713 82,953 35,734 479,635 

Risks for commitments similar to loans 17,599 10,236 8,460 240 19,135 

Total 452,208 173,949 91,413 35,974 498,770 

Risk provisions 2006 

As at Alloca- As at 

01 Jan 2006 tions Reversals Utilised 31 Dec 2006 


Loans and advances to banks 5,356 638 411 0 5,583 

of which domestic 1,611 638 0 0 2,249 

of which foreign 3,745 0 411 0 3,334 

Loans and advances to customers 329,135 133,796 40,583 34,123 388,225 

of which domestic 259,091 77,933 29,081 17,585 290,358 

of which foreign 70,044 55,863 11,502 16,538 97,867 

Revaluations in the portfolio 36,588 4,263 50 0 40,801 

Subtotal 371,079 138,697 41,044 34,123 434,609 

Risks for commitments similar to loans 27,694 8,686 18,617 164 17,599 

Total 398,773 147,383 59,661 34,287 452,208 

The interest income from impaired financial assets that were made interest-free amounted to EUR 2,845k (previous year: EUR 2,553k) in 2007. 


113 

The Group

15. Trading assets 

Debt securities and other fixed-interest securities 

114 



Public sector debt issues eligible for refinancing 38,732 39,652 

Other public sector debt issues 255 4,043 

Bonds and debt securities from other issuers 95,017 113,494 

Shares and other variable-yield securities 

Shares 169 0 

Other variable yield securities 4,982 5,392 

Positive market value from derivative transactions 

Interest rate transactions 312,441 280,450 

Currency exchange transactions 50,622 35,578 


Other business 1,497 3,906 

Total 536,872 511,285 

16. Financial assets 

Designated financial assets 






Shares and other variable-yield securities 

Shares 11,375 12,139 

Shares in investment funds 265,853 87,496 


Total 1,315,185 1,166,718 


Financial assets in the category “available for sale” (AfS) 

Debt securities 

and other fixed-interest securities 




Other public sector debt issues 2,004 4,526 

Bonds and debt securities from other issuers 

Shares 

and other variable-yield securities 

1,984,415 1,945,288 

Shares 2,843 11,092 

Shares in investment funds 959,613 952,506 


Shares in companies 

Investments in associated companies 150,436 155,928 

Other holdings 474,905 416,845 

Total 3,891,020 3,789,753 

Financial instruments in the category “held to maturity” (HtM) 






Total 87,786 101,307 


115 

The Group

17. Companies accounted for at equity 

116 



Banks 238,516 186,477 

Non-banks 386,890 327,970 

Total 625,406 514,447 

Among the banks that are accounted for at equity is the 34% share in the group Oberösterreichische Landesbank AG (HYPO 

Oberösterreich) which is held by the fully consolidated Hypo Holding GmbH. Raiffeisenlandesbank Oberösterreich sees itself as a 

long-term strategic partner to the regional bank that is headquartered in Linz and in which the province of Upper Austria has a majority 

holding. 

As regards non-bank holdings, the participation in Raiffeisenlandesbank Oberösterreich Invest GmbH &Co OG is worth 

particular mention. This company also owns 14.12% of the shares in the voestalpine AG group and have, as the largest 

individual share holder, the opportunity to exercise a considerable influence on the financial and business policies of the 

most important steel company in Austria. In his function as deputy chairman of the Supervisory Board, the CEO of 

Raiffeisenlandesbank Oberösterreich – Ludwig Scharinger – is an active participant in the strategic decisions made at voest - 

alpine AG. 

A list of the companies that are accounted for at equity can be found under the heading “Scope of consolidation”. The following 

table is a summary of the financial data on the companies mentioned in this list. The figures are a sum of the information contained 

in the various financial statements. 



Assets 14,713,658 11,364,393 

Liabilities 13,363,243 10,125,441 

Earnings 631,533 557,496 

Result 192,240 146,206 

Two of the companies have a balance sheet date that is different from that of Raiffeisenlandesbank Oberösterreich. Both in the 

application of the equity method and for the list above, Raiffeisenlandesbank Oberösterreich Invest GmbH & Co OG was taken 

into con sideration with values in accordance with its reporting date of 30 September. The data for Österreichische Salinen Aktiengesellschaft 

(reporting date 30 June) is based on an interim report as at 31 December. 


18. Intangible assets 



Other intangible assets 1,719 3,126 

Total 1,719 3,126 

19. Property, plant and equipment and financial real estate 



Land and buildings used for bank operations 31,275 41,802 

Other property, plant and equipment 15,584 27,693 

Leasing property and equipment rented out 32,673 33,796 

Financial real estate 8,731 175,890 

Total 88,263 279,181 

The fair value of financial real estate amount to EUR 10,428k (previous year: EUR 205,259k). 

20. Other assets 



Receivables from non-bank activities 9,742 8,882 

Prepayments and accrued income 8,302 6,276 

Other assets 164,553 190,627 

Total 182,597 205,785 


117 

The Group

21. Schedule of fixed asset transactions 2007 

Intangible assets 10,854 - 1,264 482 

Other intangible assets 10,854 - 1,264 482 

Property, plant and equipment 258,924 - 15,782 9,729 

Land and buildings used for operations 86,945 0 1,203 

118 

of which basic value of developed land 40,393 0 0 

Other property, plant and equipment 135,722 - 15,782 7,716 

Leasing property and equipment rented out 36,257 0 810 

Financial real estate 215,886 - 203,383 21 

Total 485,664 - 220,429 10,232 

Schedule of fixed asset transactions 2006 

Historical/production costs 

As at Change in the scope 

01 Jan 2007 of consolidation Additions 


Historical/production costs 

As at Change in the scope 

01 Jan 2005 of consolidation Additions 


Intangible assets 10,516 0 620 

Other intangible assets 10,516 0 620 

Property, plant and equipment 266,036 0 11,586 

Land and buildings used for operations 86,326 0 647 

of which basic value of developed land 40,393 0 0 

Other property, plant and equipment 144,498 0 9,067 

Leasing property and equipment rented out 35,212 0 1,872 

Financial real estate 216,056 0 77 

Total 492,608 0 12,283 


Appreciation and depreciation Carrying amount 

Reclassifi- As at Accumulated As at 

Disposals cations 31 Dec 2007 depreciation Depreciation 31 Dec 2007 


295 0 9,777 8,058 793 1,719 

295 0 9,777 8,058 793 1,719 

18,400 - 1,179 233,292 153,760 14,500 79,532 

183 0 87,965 56,690 3,212 31,275 

67 0 40,326 0 0 40,326 

18,160 0 109,496 93,912 10,175 15,584 

57 - 1,179 35,831 3,158 1,113 32,673 

0 166 12,690 3,959 5,518 8,731 

18,695 - 1,013 255,759 165,777 20,811 89,982 

Appreciation and depreciation Carrying amount 

Reclassifi- As at Accumulated As at 

Disposals cations 31 Dec 2006 depreciation Depreciation 31 Dec 2006 


282 0 10,854 7,728 716 3,126 

282 0 10,854 7,728 716 3,126 

18,698 0 258,924 155,633 15,877 103,291 

28 0 86,945 45,143 2,886 41,802 

0 0 40,393 0 0 40,393 

17,843 0 135,722 108,029 11,874 27,693 

827 0 36,257 2,461 1,117 33,796 

247 0 215,886 39,996 5,648 175,890 

19,227 0 485,664 203,357 22,241 282,307 


119 

The Group

22. Liabilities to banks 

120 



Liabilities payable on demand 2,628,283 2,603,066 


Long-term financing 2,016,776 1,564,977 

Total 8,703,699 7,576,904 

In Austria 6,555,057 5,442,734 

Abroad 2,148,642 2,134,170 

Total 8,703,699 7,576,904 

23. Liabilities to customers 



Demand deposits 2,561,996 2,240,713 

Term deposits 2,490,379 1,719,183 

Savings deposits 1,604,164 1,532,649 

Other 34,285 39,297 

Total 6,690,824 5,531,842 

In Austria 4,793,590 3,830,456 

Abroad 1,897,234 1,701,386 

Total 6,690,824 5,531,842 


24. Debt Sescurities in issue 



Bonds issued 2,363,165 2,288,358 

Pfandbriefe/ municipal bonds 396,257 411,070 

Other debt securities in issue 3,162,516 2,874,541 

Total 5,921,938 5,573,969 

25. Provisions 



Severance provisions 33,838 31,015 

Pension obligation provisions 56,718 62,694 

Long-term service bonus fund provisions 5,379 5,253 

Other provisions 25,698 24,519 

Total 121,633 123,481 

Development of severance provisions 



Present value (DBO) 01 January 31,015 27,905 

Service cost 1,919 1,950 

Interest cost 1,460 1,343 

Payments -782 -1,426 

Actuarial profit/loss 226 1,243 

Present value (DBO) 31 December (= provisions) 33,838 31,015 


121 

The Group

Development of pension obligation provisions 

122 




Change in scope of consolidation 0 0 

Service cost 483 519 

Interest cost 2,575 2,570 

Payments - 3,378 - 3,311 

Actuarial profit/loss - 5,656 - 1,078 


Development of long-term service bonus fund provisions 




Change in scope of consolidation 0 0 

Service cost 357 354 

Interest cost 245 232 

Payments - 395 - 275 

Actuarial profit/loss - 81 79 


Development of other provisions 

Risk provisions Other provisions 



As at 01 January 17,599 27,694 6,920 18,152 

Allocations 10,236 8,686 37 3,897 

Reversals - 8,460 - 18,617 - 394 - 13,950 

Utilised - 240 - 164 0 - 1,179 

As at 31 December 19,135 17,599 6,563 6,920 


26. Trading liabilities 



Interest rate transactions 456,896 350,512 

Currency exchange transactions 41,416 29,737 


Other transactions 0 3,906 

Total 531,795 413,221 

27. Other liabilities 



Liabilities from non-bank activities 28,075 32,356 

Accruals and deferred income 7,459 23,223 

Other liabilities 219,727 223,860 

Total 255,261 279,439 

28. Subordinated capital 



Subordinated liabilities 134,395 127,838 

Supplementary capital 1,160,576 1,079,511 

Total 1,294,971 1,207,349 


123 

The Group

29. Equity 

124 



Subscribed capital 254,032 241,032 

Capital reserves 547,846 410,859 

Accumulated results 859,183 671,207 

Afs reserves - 41,077 7,878 

Minority interests 79,420 76,697 

Total 1,699,404 1,407,673 

In accordance with its articles, Raiffeisenlandesbank Oberösterreich’s share capital as at 31 December 2007 was EUR 253,000k 

(previous year: 240,000k). It consists of 714,578 (previous year: 714,578) ordinary shares and 749,294 (previous year: 674,075) preferred 

shares. 

The increase in share capital by a nominal amount of EUR 13,000k was raised in accordance with the decision of the extraordinary 

general meeting on 07 December 2007 and with the approval of the Supervisory Board by issuing 75,219 individual shares – non-par, 

registered and voting preferred shares – at an issue amount of EUR 1,994 each. 

Participation capital amounting to EUR 1,032k (previous year: EUR 1,032k) has been issued. 

Capital reserves amounting to EUR 410,859k were set aside in conjunction with bringing bank business from the former Raiffeisenlandesbank 

Oberösterreich reg. Gen.m.b.H. into Raiffeisenlandesbank Oberösterreich Aktiengesellschaft in the 2004 financial year. 

With the capital increase and the premiums on newly issued preferred shares the capital reserves grew in 2007 by EUR 136,987k. 

In the 2007 financial year dividends of EUR 12,726k were paid on the preferred shares and the participation capital, in accordance 

with the decision made at the annual general meeting concerning the use of the profit of 2006. The dividend per preferred share 

was EUR 17.56. The recommendation of the Managing Board as to the use of the profit from 2007 will be to pay a dividend of 

EUR 21,238k on the preferred shares and participation capital. This means that the planned dividend for each preferred share 

(before new shares are issued) will be EUR 30.19. 

The provisions for aggregate results contain the reinvested profits of the group as well as the group profit for the current year. 

Development of the Afs provisions 



As at 01 January 7,878 39,176 

Changes in the fair value of Afs assets with no effect on the income statement - 54,115 -20,866 

Amounts transferred to the income statement after disposal of Afs assets - 13,574 -18,897 

Taxes recognised with no effect on the income statement 18,734 8,465 

As at 31 December - 41,077 7,878 

The Afs provisions reflect changes in valuation recorded under equity with no effect on the income statement of financial instruments 

in the category "financial assets available for sale" (Afs) in accordance with IAS 39. 


RISK REPORT 

Summary 

The long-term success of Raiffeisenlandesbank Ober österreich 

Aktiengesellschaft is largely dependent upon active 

risk management. In order to achieve this objective, as the 

dominating Group company, Raiffeisenlandesbank Oberösterreich 

has implemented a risk management system which 

allows the identification and measurement of all risks within 

the Group (market, credit, liquidity and operational risks) and 

their active managerial control. 

The risk policy sanctioned by the Raiffeisenlandesbank Ober - 

österreich Managing Board represents the guidelines for the 

other Group companies. 

The Managing Board and all employees act in accordance 

with the risk policy principles and make decisions on the basis 

of these guidelines. Risk management is organised in such a 

way that conflicts of interest both on a personal level and at 

the organisation units level are avoided. 

For the main types of risks, Raiffeisenlandesbank Oberösterreich 

strives to operate a risk management system on a 

level which at least corresponds to that of institutions of a 

similar structure and size (best practice principle) and is primarily 

aimed at the continuation of the company as a going 

concern. 

Raiffeisenlandesbank Oberösterreich in general only aims its 

work at areas of the business in which it has the requisite expertise 

in the assessment of the specific risks. Before it moves 

into new areas of business or products, the group always 

carries out an adequate analysis of the risks posed by that 

specific business. 

The Managing Board and the Supervisory Board of Raiff - 

eisenlandesbank Oberösterreich are informed promptly of the 

bank’s risk situation by means of comprehensive, objective 

reports. All the quantifiable risks (in particular credit, market, 

liquidity and operational risks) to which Raiffeisenlandesbank 

Oberösterreich is exposed are monitored and coordi nated 

with the Group’s overall strategy. 

All the quantifiable risks are monitored on the basis of the 

Group-wide risk-bearing capacity. The aim of the early risk 

identification and risk monitoring systems is to ensure the 

qualified and timely identification of all major risks. 


Risk Controlling analyses all risks and examines adherence 

to the defined risk limits by means of ongoing projection and 

actual comparisons. Internal/Group Auditing assesses the 

effectiveness of working procedures, processes and internal 

controls. 

RISK MANAGEMENT ORGANISATION 

The Managing Board of Raiffeisenlandesbank Oberösterreich 

bears responsibility for all risk management activities. 

It approves the risk policy in accordance with the business 

strategies, the risk principles, procedures and methods of risk 

measurement and the risk limits. 

The Controlling organisation unit is responsible for the identification 

and measurement of risks in cooperation with the 

organisation units charged with them. Controlling is also responsible 

for the development and provision of risk measurement 

methods and IT systems and provides the result and risk 

information required for active risk management. 

Market risks 

Market risks take the form of changes in interest rates, currency 

and exchange rates relating to securities, interest rate and 

foreign exchange items 

The basis for all business is a balanced risk/reward ratio. 

The Raiffeisenlandesbank Oberösterreich Group also uses the 

principle of diversification on the basis of business partners, 

products, regions and sales channels to reduce its risks. In 

addition, derivative transactions are conducted almost exclusively 

with banks with which security agreements are in place. 

The strict division of labour between front, middle and back 

office and risk controlling ensures that risks can be described 

comprehensively, transparently and objectively to the Manag - 

ing Board and supervisory authorities. 

New products and markets are evaluated in an approval process 

and then approved by the Managing Board. The primary 

objective of trading activities in the Finance Trade Center is 

customer transactions. The trades and the market price risk 

are limited by an extensive limit system. 

125 

The Group

All trading positions are valued every day at market prices. 

The strategic alignment and positioning in the bank book are 

presented to the Managing Board on a weekly basis and 

continued procedure is then agreed. No open liquidity po - 

sitions are entered into for deadline transformation purposes. 

Foreign currency risks are only entered into on a very limited 

basis by Raiffeisenlandesbank Oberösterreich. All market 

price risks from customer transactions are recorded and valued 

in the bank book. 

The excess risk from all customer transactions is insured. 

The market risks are measured every day with the value-at-risk 

index for the trading and bank books. This indicates a possible 

loss, which with 99% probability will not be exceeded 

in the case of a certain holding period. The assumed holding 

period is one day for the trading book and one month for the 

bank book. The calculations are made using the variancecovariance 

method in the trading book and a historic simulation 

in the bank book. 

The market risks are managed using a limit system based on 

the value at risk. All market risk activities are assigned a risk 

limit which is included in full in the risk capacity analysis. 

In addition to the value-at-risk index, the following limits are 

used for risks: Stop loss, scenario analyses and volume limits. 

The value-at-risk figures for Raiffeisenlandesbank Oberösterreich 

Aktiengesellschaft and Salzburger Landes-Hypothekenbank 

AG are calculated on a daily basis. Reports to the full 

Managing Board are made every day for the trading book and 

on a monthly basis for the bank book. The Board member responsible 

for the treasury is also informed of the bank book every 

day. The other fully consolidated Group companies minimise 

their market risks through punctual re-financing via Raiffeisen - 

landesbank Oberösterreich. 

Shifts in the interest, currency and share price landscape can 

bring a major influence to bear on results and the risk situation. 

Therefore, in Raiffeisenlandesbank Oberösterreich possible 

changes in risk parameters are simulated and the con - 

sequences reported to the Managing Board. 

The following table shows the value-at-risk values for the 

Raiff eisenlandesbank Oberösterreich Group (confidence level 

99%, holding period 1 month). The value-at-risk of the trading 

book with a holding period of one day was rescaled to a 

holding period of one month due to its insignificance and has 

not been shown separately. 

Raiffeisenlandesbank 31 Dec 2007 31 Dec 2006 

Oberösterreich Group in EUR ‘000 in EUR ‘000 

Total 31,946 50,072 

Interest 32,976 52,148 

Currency 424 645 

Shares 5,161 12,729 

Volatility 3,017 1,440 

The total value-at-risk on 31 December 2007 fell in comparison 

with 31 December 2006 by EUR 18.1 million to EUR 31.9 million. 

In view of the high volatility of the financial markets, the 

Treasury continuously reduces the interest and shares risk 

over the course of the year. 

The Raiffeisenlandesbank Oberösterreich Group did not invest 

in US sub-prime finance instruments neither in 2007 nor in pre - 

vious years. 

To check the forecast quality of the value-at-risk figures, backtesting 

is carried out on a daily basis. This means that the 

actual results are compared to the values forecast by the 

value-at-risk model. This back-testing confirms the validity 

of the statistical methods used. 


In addition, stress tests are conducted to take account of 

risks in the event of extreme market movements. The crisis 

scenarios include the simulation of large fluctuations in the 

risk factors and are designed to highlight potential losses 

which are not covered by the value-at-risk model. The stress 

scenarios comprise both the extreme market fluctuations 

which have actually occurred in the past and also a series of 

standardised shock scenarios involving interest rates, share 

prices, currency exchange rates and volatility. On the basis of 

the value losses simulated by these stress tests, we analyse 

whether the market risks we review are reasonable in relation 

to our equity capital on a quarterly basis. 

Credit risk 

The credit risk constitutes the risk of the bank that a loss will 

occur as a result of the non-fulfilment of the contract duties of 

customers or contract partners. 

Credit risk is mainly generated by the loans to customers and 

banks and from securities from the bank book. The Group 

takes into account and consolidates all elements of credit risk 

claims, such as the risk of insolvency of individual debtors, 

national and sector risks for the purpose of producing a risk 

report. 

The credit risk of the securities from the trading book is treated 

separately for the purposes of risk management. Reports are 

made as part of the market risk. 

The principles for the credit ratings of the customers are incor - 

porated in the ”Credit Risk Management” manual. This manual 

contains a complete description of the standards that apply 


within Raiffeisenlandesbank Oberösterreich, which in turn are 

based on the regulations of the international “Basel II” standards. 

The organisational separation between the market and market 

consequences was already implemented some years ago. 

Moreover, in order to measure the credit risk, following an 

inter national bank rating, financing is divided into creditworthi - 

ness and risk classes. The risk situation of a borrower therefore 

comprises two dimensions – the recording and the 

assess ment of their financial situation and the provision of 

securities. 

Both hard and soft facts are employed as creditworthiness 

criteria. In corporate customer business, soft facts are also 

defined systematically during discussions with the company 

and then adjudged. 

The rating systems are distinguished on the basis of the claim 

classes of corporates, retail customers, banks and securities 

issuers and states. 

Since 2005, a scoring system has been employed for the automatic 

classification of small volume business with employed 

retail customers. 

The credit rating systems are validated on an on-going basis 

and undergo further development if necessary. 

The following rating classes, which were supplemented in 

2000 with half-classes as a result of Basel II, are used for 

rating purposes in the Raiffeisenlandesbank Oberösterreich 

Group. The following table demonstrates the rating struc tures 

described below. 

127 

The Group

128 

Text 10 point scale Subclasses S&P Moodys 

Risk-free 0,5 0,5 AAA Aaa 

AA+ Aa1 

outstanding creditworthiness 1 1 

AA Aa2 

AA- Aa3 

A+ A1 

excellent creditworthiness 1.5 1.5 

A A2 

A- A3 

good creditworthiness (+) 

good creditworthiness 

2 

2 + 

2 

BBB+ 

BBB 

Baa1 

Baa2 

good to average creditworthiness 

average creditworthiness 

2.5 

2 - 

2.5 

BBB- 

BB+ 

Baa3 

Ba1 

satisfactory creditworthiness (+) 3 + BB Ba2 

satisfactory creditworthiness 3 3 BB- Ba3 

mediocre creditworthiness (-) 

poor creditworthiness 

3.5 

3 - 

3.5 

B+ 

B 

B1 

B2 

. 

very poor creditworthiness (+) 

very poor creditworthiness 

4 

4 + 

4 

B- 

CCC 

B3 

Caa 

in danger of default 4.5 4.5 CC 

default criteria 

reached 

5 5 

C 

D 

Ca 

Individual rating classes are defined and delineated by means 

of calculations which assess mathematical default probabilities, 

the written specification is only for elucidatory purposes, 

the above transition to external ratings corresponds to the 

bank’s experience to date. 

Addendums showing +/- do not represent main rating classes, 

they simply aim to enhance pricing accuracy. Moreover, 

default probabilities are the basis for transitions to external 

rating classes. 


Overall financial structure pursuant to balance sheet items 

Maximum credit risk exposure pursuant to IFRS 7.36 a 



Cash reserves (credit balance at central banks) 81,285 69,663 

Loans and advances to banks 4,633,396 4,431,704 

Loans and advances to customers 13,744,557 11,009,014 

Trading assets 536,703 511,285 

Financial assets 4,580,961 4,393,601 

Tax assets 44,276 35,940 

Other assets 182,597 205,784 

Total 23,803,775 20,656,991 

Contingent liabilities 2,188,951 1,819,967 

Credit risks 8,504,940 7,543,522 

Total 10,693,891 9,363,489 

Total maximum credit exposure 34,497,666 30,020,480 

Security values for overall financial structure 

The stated security values correspond to the values determined within internal risk management; they communicate the conservative 

income expectations in the event of settlement of existing credit commitments. 

Security values pursuant to IFRS 7.36 b 





Total 5,058,402 4,469,667 

Contingent liabilities 574,478 449,833 

Credit risks 1,133,276 845,580 

Total 1,707,754 1,295,413 

Total security values 6,766,156 5,765,080 


129 

The Group

Rating structure for credit risk exposure which is neither overdue nor impaired 

The quality of the financial assets which are neither overdue nor impaired are depicted as follows on the basis of the internal rating 

classification: 

Very low risk: Rating classes 0.5 to 1.5 

Normal risk: Rating classes +2 to 3+ 

Increased risk: Rating classes 3 and poorer 

Structure of overdue or impaired credit risk exposure 

Book values of overdue or impaired financial assets. 

Classification of maximum credit risk exposure in accordance to IFRS 7.36 d (overdue or impaired) 

130 

Customers Banks Others 

2007 2006 2007 2006 2007 2006 


Very low to low risk 12,452,788 10,947,146 5,561,761 5,436,339 125,561 105,603 

Normal risk 11,522,497 9,406,455 463,813 409,229 215,873 242,213 

Increased risk 1,393,058 1,012,547 5,046 289 0 0 

Total 25,368,343 21,366,148 6,030,620 5,845,857 341,434 347,816 





Trading assets 689 750 

Financial assets 137,285 80,711 

Total 2,145,978 1,931,718 


Credit risks 437,292 314,391 

Total 611,291 528,941 

Total 2,757,269 2,460,659 


Sector structure/Correlation risk 

Maximum credit risk exposure pursuant to sector groups 

Sector 



Banks 8,553,811 8,140,681 

Real estate projects, property management and residential building management 5,137,732 4,295,683 

Public households and non-profit organisations 2,596,691 2,904,754 

Finance leasing institutions 2,317,106 1,396,759 

Retail (natural persons) 1,204,055 1,120,381 

Construction 1,053,480 951,340 

Finance holdings 1,018,521 627,417 

Supplementary construction trade 985,786 806,783 

Engine and plant construction 919,792 776,811 

Foodstuffs 802,194 797,358 

Metal production and processing 767,129 521,764 

Consumer goods 713,659 581,760 

Financial services 696,977 506,652 

Energy and other utilities 673,867 609,456 

Automotive 599,837 558,661 

Transport (goods, people, on land, on water) 546,763 559,535 

Subtotal 28,587,400 25,155,795 

Other 5,910,266 4,864,685 

Total 34,497,666 30,020,480 

The Credit Institution Group of Raiffeisenlandesbank Oberösterreich procured 15 large-volume assessments exhibiting credit exposure 

amounting to EUR 8,190 million at the end of 2007. Eight of these large-volume assessment come from the commercial 

sector, 3 come from the public sector and 4 from the banking sector. Thirteen commitments exhibited very low and low risk 

ratings; two were classified as exhibiting normal risk. 

Age structure of overdue credit risk exposure 

The financial assets which were overdue but not impaired upon balance sheet date exhibit the following age structure: 



up to 30 days 615,204 561,232 

31 to 60 days 145,328 184,194 

61 to 90 days 13,017 17,371 

over 90 days 36,875 33,547 

Total 810,424 796,344 


131 

The Group

Risk provisions for impaired credit exposure 

The financial assets which were individually determined to be impaired upon balance sheet date, exhibit the following structure: *) 

132 

Customers Banks Others 

2007 2006 2007 2006 2007 2006 


Gross value 2,872,518 2,557,877 113,437 153,457 137,974 81,461 

Risk provisions (incl. general provisions) - 375,788 - 341,593 - 3,519 - 5,583 0 0 

Book value 2,496,730 2,216,284 109,918 147,874 137,974 81,461 

*) Contributions without portfolio value adjustment 

In the rating class w 5.0, the proportion of the due credit risk exposure not covered by the securities calculated through bankinternal 

measures are usually determined as risk provisions. In rating classes w 3.0 to w 4.5, proportional value adjustments are 

made for the blank portion of the due credit exposure. 

Standardised (pursuant to risk classes) risk provisions are applied in the retail sector. 

Collateral relating to overdue or impaired credit risk exposure 

The following value-based collateral applies to the overdue or impaired financial assets: 



Loans and advances to banks 431 431 

Loans and advances to customers 826,047 853,721 


Credit risks 136,710 87,694 

Total security values 1,026,233 1,031,464 

The securities valuations of impaired credit risk exposure are assessed without delay – and correspond to the conservative, 

prospective long-term earnings through realisation, 


Credit-Value-at-Risk 

Credit-Value-at-Risk for all assets exhibiting address default 

risk is assessed monthly. Risk may arise due to credit default 

or worsening of creditworthiness – and it is communicated 

through the key figures credit-value-at-risk, expected loss and 

unexpected loss. 

The expected loss represents the most probable value de - 

crease of a given portfolio. This specified decrease in value 

should be expected each year. This loss is covered by the 

calculated risk costs. The unexpected loss represents a portfolio’s 

possible loss beyond the expected loss, and thus communicates 

possible negative deviation from the expected loss. 

The unexpected loss is covered by the equity capital. 

The aggregate of expected loss and unexpected loss results 

in the credit-value-at-risk. The credit-value-at-risk is the 

maximum loss that can possibly arise within a single year, 

and which – with a certain amount of probability – will 

not be exceeded. Raiffeisenlandesbank Oberösterreich 

calculates unexpected loss at probabilities of 95%, 99% 

and 99.9%. 

The calculation is carried out by RiskMetrics’ credit manager 

program. Credit-value-at-risk is assessed with adherence to 

diversification effects within the portfolio. The asset value 

model is applied to this end. 

Liquidity risk 

The liquidity risk encompasses the risk of not being able to 

fulfil one’s payment obligations by the due date or, in the case 

of a liquidity shortage, of not being able to acquire enough 

liquidity at the terms expected (structural liquidity risk). 

The bank’s liquidity must be secured at all times. This is why 

no open liquidity risks are taken for term transformation purposes. 

Furthermore, securities suitable for ECB tenders shall 

only be used for securitisation for clearing houses and se curity 

agreements in exceptional cases in order to ensure that suf- 


ficient coverage is always available and can be refinanced in 

the event of a liquidity crisis. 

In 2007 the organisational preparations were completed at 

Raiffeisenlandesbank Oberösterreich for submitting customer 

loans to the ECB tender process. 

The Österreichische Nationalbank certified the procedures submitted 

by Raiffeisenlandesbank Oberösterreich. Thus, with imme 

diate effect, customer credits may be utilised for short-term 

re financing. 

The structural liquidity risk is monitored and managed with 

continuous reports showing capital commitment (pertaining 

to both assets and liabilities) at all the different time frames 

until maturity. 

The short-term liquidity reserves that are available to be capitalised 

are depicted in the liquidity protection plan (emergency plan). 

On the basis of the liquidity maturity balance, monthly scenarios 

are calculated for Raiffeisenlandesbank Oberösterreich 

Aktiengesellschaft and Salzburger Landes-Hypothekenbank AG, 

which determine the closure expense for the open liquidity 

items. The sufficient supply of short- and medium-term liquid - 

ity for the event of bottleneck situations is presented in the 

liquidity protection plan. 

To measure the structural liquidity risk, a simulated worsening 

of Raiffeisenlandesbank Oberösterreich’s rating class on the 

basis of Moody’s transition probability is assessed. The risk 

capital requirements result from the difference in present-value 

expenditure between refinancing at the present conditions 

and refinancing at the simulated altered rating class. 

The other fully consolidated group companies are also re - 

financed on a punctual basis. 

The following table summarises the maturities of the nondiscounted 

liabilities including the respective interest payments 

and depicts the earliest possible utilisation of guarantees and 

credit commitments: 

133 

The Group

Payable on de- Up to 3 months 1 year to Over 

31 Dec 2007 mand/no term 3 months to 1 year 5 years 5 years Total 

134 


Liabilities to banks 2,465,162 2,151,578 1,133,546 1,369,573 1,912,021 9,031,880 

Liabilities to customers 2,547,430 1,503,548 801,387 728,008 1,530,245 7,110,618 

Debt securities in issue 4,157 312,658 689,664 3,211,804 3,500,347 7,718,630 

Trading liabilities 0 243,622 627,966 2,376,940 6,044,509 9,293,037 

Subordinated capital 0 13,645 49,381 403,909 1,224,417 1,691,352 

Contingent liabilities 2,188,951 0 0 0 0 2,188,951 

Credit risks 8,504,940 0 0 0 0 8,504,940 


31 Dec 2006 mand/no term 3 months to 1 year 5 years 5 years Total 


Liabilities to banks 2,419,781 1,163,367 1,373,469 1,319,962 1,268,927 7,545,506 

Liabilities to customers 2,274,287 827,654 559,906 664,876 1,580,287 5,907,010 

Debt securities in issue 60,241 360,549 502,259 2,903,500 3,230,926 7,057,475 

Trading liabilities 0 182,579 499,620 1,673,355 1,808,814 4,164,368 

Subordinated capital 0 6,707 120,497 297,070 1,138,693 1,562,967 

Contingent liabilities 1,819,967 0 0 0 0 1,819,967 

Credit risks 7,543,522 0 0 0 0 7,543,522 

From the gap analysis below it can be seen that there is no liquidity risk in the individual maturity periods. 

GAP in EUR mill. 

1,500 

1,000 

500 

0 

- 500 

- 1,000 


up to 1 year 1 to 3 years 3 to 5 years 5 to 7 years 7 to 10 years over 10 years 

Active 

surplus 

Passive 

surplus 


Operational risks 

The Group defines operational risk as being the risk of losses 

derived from the inadequacies or failure of internal procedures, 

people and systems, or external events. 

The Group has used organisational and technical computing 

measures in order to restrict this type of risk. Limit systems, 

com petence regulations, a risk-adequate internal control 

Risk-bearing capacity analysis 

In the analysis of risk-bearing capacity the aggregate banking 

risk of the entire Group is divided into credit risk, market risk, 

refinancing risk, operational risk and other risks (= strategic risk, 

reputational risk, equity risk and earnings risk) and compared 

with the risk coverage (= operating result, hidden reserves, 

provisions and equity). 

This comparison of the Group risk with the available coverage 

shows the risk-bearing capacity. 


system, as well as scheduled and unscheduled audits by 

Internal / Group Auditing in the individual group companies 

guarantees a high degree of security. 

The goal of the self assessments done in the group is to make 

an appraisal of the operational risks and to increase the awareness 

of operational risks (early warning system). 

With this comparison, the Raiffeisenlandesbank Oberösterreich 

Group is able to guarantee that it can cover extremely 

unexpected losses from its own funds without difficult negative 

effects. Economic capital is the measurement of risk used 

to calculate extremely unexpected losses. It is defined as the 

minimum amount of capital necessary to cover unexpected 

losses with a probability of 99.9% within one year. 

135 

The Group

OTHER NOTES 

Breakdown of remaining maturities 

Breakdown of remaining maturities as at 31 December 2007 

136 


mand/no term 3 months to 1 year 5 years 5 years Total 


Cash and cash equivalents 116,012 0 0 0 0 

Loans and advances to banks 1,406,826 1,634,591 918,628 464,132 209,219 

Loans and advances to customers 1,994,954 2,234,292 2,049,005 3,302,245 4,164,061 

Trading assets 94,231 32,491 36,602 185,680 187,868 

Financial assets 2,206,355 103,019 103,028 1,685,273 1,196,316 

Companies accounted for at equity 625,406 0 0 0 0 

Liabilities to banks 2,986,129 2,015,754 1,024,655 1,086,163 1,590,998 

Liabilities to customers 2,565,465 1,518,443 787,763 553,989 1,265,164 

Debt securities in issue 139,045 245,697 580,834 2,404,887 2,551,475 

Trading liabilities 4,908 16,294 54,147 146,433 310,013 

Subordinated capital 28,528 0 21,199 257,469 987,775 

Breakdown of remaining maturities as at 31 December 2006 


mand/no term 3 months to 1 year 5 years 5 years Total 


Cash and cash equivalents 103,239 0 0 0 0 

Loans and advances to banks 822,176 1,475,083 1,223,493 643,302 267,650 

Loans and advances to customers 1,530,163 1,625,055 1,603,189 2,828,555 3,422,052 

Trading assets 115,972 125,235 58,531 113,815 97,732 

Financial assets 1,955,516 81,625 264,479 1,463,499 1,292,659 

Companies accounted for at equity 514,447 0 0 0 0 

Liabilities to banks 2,947,311 1,108,343 1,276,479 1,142,372 1,102,399 

Liabilities to customers 2,243,986 857,704 542,821 515,507 1,371,824 

Debt securities in issue 161,202 294,309 357,799 2,263,616 2,497,043 

Trading liabilities 17,449 248,601 42,974 46,650 57,547 

Subordinated capital 30,867 0 41,678 142,516 992,288 


Loans and advances and other liabilities to related companies 

Loans and advances and other liabilities to related companies as at 31 December 2007 

Loans and advances and other liabilities of Raiffeisenlandesbank Oberösterreich to parent companies and companies in which 

Raiffeisen landesbank Oberösterreich holds shares are as follows: 

Companies accounted Shares in 

for at equity companies 


Loans and advances to banks 804,724 1,075,288 

Loans and advances to customers 384,666 1,411,034 



Other assets 179 19,369 

Liabilities to banks 808,800 456,306 

Liabilities to customers 9,090 151,354 

Other liabilities 2,439 18,711 

Contingent liabilities 0 0 

Loans and advances and other liabilities to related companies as at 31 December 2006 

Companies accounted Shares in 

for at equity companies 


Loans and advances to banks 516,353 1,845,640 

Loans and advances to customers 311,754 1,211,163 



Other assets 131 41,766 

Liabilities to banks 867,289 602,692 

Liabilities to customers 35,648 74,075 

Other liabilities 21 17,218 

Contingent liabilities 0 35 

As of 31 December 2007 EUR 15,000k are pledged to companies accounted for at equity. Valuation allowances in the amount of 

EUR 8,000k were reserved for related companies in the 2007 financial year. 

The parent company is a cooperative registered as “Raiffeisenbankengruppe OÖ Verbund eingetragene Genossenschaft” which is not, 

aside from its function as a holding, operationally active. Information about the companies accounted for at equity is recorded separately 

from other shares in companies. The latter are holdings in companies that are neither fully consolidated nor accounted for at equity. 

As of the balance sheet date there were no material loans and advances or other liabilities to the parent company. 

In the course of ordinary business activities, transactions with related companies and persons are concluded under standard market 

conditions. 


137 

The Group

Remuneration of the Managing Board and the Supervisory Board 

Expenses for the remuneration of members of the Managing Board of Raiffeisenlandesbank Oberösterreich are spread out during 

the financial year as follows: 

138 



Ongoing payments 1,684 1,558 

Post-employment benefits 1,192 1,096 

Other long-term benefits due 9 12 

Total 2,885 2,666 

During the 2007 financial year EUR 402k (previous year: EUR 385k) were paid to members of the Supervisory Board, 

Advances and loans to membersof the Managing Board and the Supervisory Board 

Advances and loans to members of the Raiffeisenlandesbank Oberösterreich Managing Board and the Supervisory Board consisted of 

EUR 306k (previous year: EUR 287k) to members of the Managing Board, and EUR 963k (previous year: EUR 385k) to members of the 

Supervisory Board. 

Loans to members of the Managing Board and the Supervisory Board are granted at standard bank conditions. Repayments are made 

as agreed. 


Contingent liabilities and credit risks 

As at the balance sheet date the following off-balance-sheet obligations existed: 

Assets pledged as collateral 

As at 31 December 2007, securities to the amount of EUR 

9,429k (previous year: EUR 6,441k) were held as reserve for 

trust fund deposits of EUR 5,991k (previous year EUR 5,190k). 

Actuarial reserve funds of EUR 721,665k (previous year: EUR 

863,839k) have been earmarked for Pfandbriefe, municipal 

bonds and covered bonds. In addition, securities are held in 

the substitute reserve depot in accordance with § 2 para 3 of 

the “Austrian Pfandbrief Act” in the amount of EUR 0 (previous 

year: EUR 2,921k). 

Securities with a carrying amount of EUR 1,013,926k (previous 

year: EUR 1,074,918k) have been deposited as collateral at 

banks and stock exchanges. EUR 89,374k (previous year EUR 

35,722k) were deposited at banks for collateral arrangements 



Contingent liabilities 2,188,951 1,819,967 

of which other indemnity agreements 2,188,872 1,819,888 

of which other contingent liabilities 79 79 

Credit risks 8,504,940 7,543,522 

of which revocable loan commitments/stand-by facilities 8,452,794 7,488,562 

up to 1 year 5,233,036 4,948,961 

over 1 year 3,219,758 2,539,601 

of which pseudo repo transactions 31,847 54,960 

of which other credit risks 20,299 0 


and EUR 15,000k (previous year: EUR 0 k) are pledged. 

Money claims to the amount of EUR 631,266k (previous year: 

EUR 534,667k) were ceded to the Oesterreichische Kontrollbank. 

Outstanding debts of EUR 53,565k (previous year: EUR 

50,420k) were ceded to the European Investment Bank. 

In addition, as at 31 December 2007, fixed-interest securities 

with a carrying amount of EUR 39,970k (previous year EUR 

13,149k) were held in a blocked account at the Landeszentral - 

bank in the Free State of Bavaria as a security deposit for 

advances on securities. 

As per 31 December 2007 securities with a carrying amount of 

EUR 135,646k (previous year: EUR 201,377k) were put in pensions. 

139 

The Group

Finance lease (Lessor) 

Claims from leasing transactions (Finance Lease) are as follows: 

The leased property holdings are structured as follows: 

140 



Investment (gross) 468,646 364,509 

Minimum lease payments 432,596 330,579 

up to 3 months 40,994 32,975 

from 3 months to 1 year 72,215 51,976 

from 1 to 5 years 215,938 159,476 

over 5 years 103,449 86,152 

Non-guaranteed residual values 36,050 33,930 

Unrealised financial earnings 95,830 70,656 

up to 3 months 4,883 2,936 

from 3 months to 1 year 12,387 8,341 

from 1 to 5 years 39,281 29,208 

over 5 years 39,279 30,171 

Investment (net) 372,816 293,853 

Value adjustments for irrecoverable outstanding minimum lease payments amount to EUR 299k. 



Vehicle leasing 131,433 82,634 

Real estate leasing 121,508 113,342 

Lease of movables 119,875 97,877 

Total 372,816 293,853 


Finance lease (Lessee) 

The assets and future minimum lease payments below refer to finance lease agreements in which Raiffeisenlandesbank Ober - 

österreich is the lessee: 

Operating Leasing (Lessor) 



Net carrying amount 1,919 2,776 

Minimum lease payments 1,113 2,301 

of which up to one year 713 1,417 

of which from 1-5 years 400 884 

of which for more than 5 years 0 0 

The contingent lease payments recognised as expenses amounted to EUR 1,517k in the financial year 2007 (EUR 1,655k in the previous year). 

The depicted future minimum lease payments below refer to irredeemable operating lease business operations in which Raiff - 

eisenlandesbank Oberösterreich is the lessor: 



up to 1 year 3,136 2,300 

from 1 to 5 years 9,571 8,312 

over 5 years 18,284 18,543 

Total 30,991 29,155 

The minimum lease payments refer solely to real estate leasing. 

The further operative earnings from Operating Leasing amount to EUR 2,355k for the financial year 2007 (previous year: EUR 1,813k). 


141 

The Group

INFORMATION BASED ON AUSTRIAN ACCOUNTING STANDARDS 

Foreign currency trading volumes 

The assets and liabilities below are recognised in foreign currencies in the consolidated financial statements: 

142 



Assets 3,245,339 2,905,240 

Liabilities 2,496,413 2,309,961 

Listed securities pursuant to § 64 of the Austrian Banking Act 

listed non-listed 

31 Dec 2007 31 Dec 2006 31 Dec 2007 31 Dec 2006 


Bonds and other 

fixed-interest securities 

Shares and other 

2,216,444 2,162,489 0 0 

fixed-interest securities 77,734 34,991 0 0 

Of the listed bonds and other fixed-interest securities, EUR 1,779,306k (previous year: EUR 1,545,688k) can be allocated to the 

fixed assets. 

Volume of securities book in accordance with § 22 of the Austrian Banking Act 



Securities 144,423 175,858 

Other financial instruments 123,497 116,852 

Total 267,920 292,710 


Regulatory equity requirements 

Equity of the Credit Institution Group of Raiffeisenlandesbank Oberösterreich in accordance with the Austrian Banking Act is divided as follows: 



Tier 1 - capital (core capital) 1,459,848 1,218,265 

Tier 2 capital (supplementary capital) 1,242,888 1,150,198 

Less holdings in banks/financial institutions - 192,330 - 142,780 

Equity eligible for inclusion 2,510,406 2,225,683 

Tier 3 capital (short-term subordinated capital) 0 0 

Total equity 2,510,406 2,225,683 

The total equity requirement is divided up as follows: 

Risk-weighted assessment bases 



in accordance with § 22 of the Austrian Banking Act 19,302,709 16,001,356 

of which 8% minimum equity requirement 

Equity requirement for the securities trading book 

1,544,217 1,280,108 

in accordance with § 22b para 1 of the Austrian Banking Act 

Equity requirements for the open foreign exchange positions 

4,179 4,793 

in accordance with § 26 of the Austrian Banking Act 0 0 

Total equity requirement 1,548,396 1,284,901 

Requisite equity bank book 1,544,217 1,280,108 

Requisite equity trading book 4,179 4,793 

Equity surplus 962,010 940,782 

Coverage ratio in% 5,0 5,9 

Tier 1 ratio in% 7,56 7,61 

Equity ratio in% 12,98 13,88 

The Tier 1 ratio refers to the risk-weighted basis pursuant to § 22 of the Austrian Banking Act. 

Within the framework of equity management, the main focus lies on securing adequate financial resources for the group and 

maintaining regulatory equity requirements for the Credit Institute Group of Raiffeisenlandesbank Oberösterreich. 


143 

The Group

Average number of employees pursuant to § 266 of the Austrian Business Code 

Additional information on terms according to § 64 of the Austrian Banking Act 

In 2008, bonds and other fixed-interest securities held by Raiffeisenlandesbank Oberösterreich to the amount of EUR 190,898k 

(2007: 343,290k) will mature, along with bond issues of EUR 225,552k (2007: EUR 178,192k). 

Subordinated liabilities 

In the case of subordinated liabilities, the subordination is always agreed separately in writing pursuant to § 51 para 9 of the 

Austrian Banking Act. The term and repayment are established in a manner that permits allocation to equity in accordance with 

§ 23 para 8 subpara 1 of the Austrian Banking Act. The subordinated liabilities include an emission with the nominal value of 

EUR 124,172k and an interest rate of 5.161% as well as an emission with the nominal value of EUR 117,305k and an interest rate 

of 5.0% which will be repaid in 2020. 

Expenses for subordinated liabilities 

Expenses for subordinated liabilities in the 2007 financial year totalled EUR 60,141k (previous year: EUR 52,951k). 

EVENTS AFTER THE BALANCE SHEET DATE 

There were no events of particular importance after the close of the 2007 business year. 

THE MEMBERS OF THE BOARD OF RAIFFEISENLANDESBANK OBERÖSTERREICH AKTIENGESELLSCHAFT 

Information on the members of the Raiffeisenlandesbank Oberösterreich Aktiengesellschaft Managing Board and Supervisory 

Board can be found on pages 4 to 7. 

144 


Employees 1,736 1,732 

Labourers 16 16 

Total 1,752 1,748 














Deputy Chief Executive 

Georg Starzer 




145 

The Group


REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS 

We have audited the accompanying consolidated financial statements of 


2007. Those financial statements comprise the balance sheet 

as at 31 December 2007, and the income statement, statement 

of changes in equity and cash flow statement for the 

year then ended, and a summary of significant accounting 

policies and other explanatory notes. Our liability as auditors 

is guided under § 275 UGB. 

Management’s Responsibility 

for the Financial Statements 

Management is responsible for the preparation and fair presentation 

of these consolidated financial statements in 

accordance with International Financial Reporting Standards 

(IFRSs) as adopted by the EU. This responsibility includes: 

designing, implementing and maintaining internal control 

relevant to the preparation and fair presentation of financial 

statements that are free from material misstatement, whether 

due to fraud or error; selecting and applying appropriate 

accounting policies; and making accounting estimates that 

are reasonable in the circumstances. 

146 


domiciled in 4020 Linz, Europaplatz 1a, 

Auditor's Responsibility 

Our responsibility is to express an opinion on these consolidated 

financial statements based on our audit. We con ducted 

our audit in accordance with laws and regulations applicable 

in Austria and Austrian Standards on Auditing and Inter - 

national Standards on Auditing, issued by the International 

Auditing and Assurance Standards Board (IAASB) of the 

International Federation of Accountants (IFAC). Those stand - 

ards require that we comply with ethical requirements and 

plan and perform the audit to obtain reasonable assurance 

whether the consolidated financial statements are free from 

material misstatement. 

An audit involves performing procedures to obtain audit 

evidence about the amounts and disclosures in the con soli - 

dated financial statements. The procedures selected depend 

on the auditor’s judgement, including the assessment of the 

risks of material misstatement of the consolidated financial 

statements, whether due to fraud or error. In making those risk 

assessments, the auditor considers internal control relevant 


to the entity’s preparation and fair presentation of the con - 

solidated financial statements in order to design audit pro - 

cedures that are appropriate in the circumstances, but not for 

the purpose of expressing an opinion on the effectiveness of 

the entity’s internal control. An audit also includes evaluation 

of the appropriateness of accounting policies used and the 

reasonableness of accounting estimates made by management, 

as well as evaluating the overall presentation of the 

financial statements. 

We believe that the audit evidence we have obtained is sufficient 

and appropriate to provide a basis for our audit opinion. 

Opinion 

Our audit did not give rise to any objections. Based on the 

results of our audit in our opinion the consolidated financial 

statements present fairly, in all material respects, the financial 



position of the group as of 31. December 2007 and of its finan - 

cial performance and its cash flows for the year then ended in 

accordance with International Financial Reporting Standards 

(IFRSs) as adopted by the EU. 

REPORT ON OTHER LEGAL REQUIREMENTS 

KPMG Austria GmbH 

Wirtschaftsprüfungs- und Steuerberatungsgesellschaft 

Martha Kloibmüller Ernst Pichler 

Chartered accountants and tax consultants 

Law and regulation applicable in Austria require us to perform 

audit procedures whether the group management report is 

consistent with the consolidated financial statements and 

whether the other disclosures made in the group management 

report do not give rise to misconception of the position of the 

group. 

In our opinion, the Group Management Report is consistent 

with the consolidated financial statements. 

This report is a translation of the original report in German, which is solely valid. 

147 

The Group


REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS 

I have audited the consolidated financial statements of 


2007. These consolidated financial statements include the consolidated 

balance sheet as of 31.12.07, the group income statement, 

the group cash flow statement and the group statement 

of changes in equity for the financial year ending 31.12.07 and 

a summary of material accounting policies and other data in the 

appendices. 

The legal representatives of the company are responsible for 

compiling the consolidated financial statements presenting a 

true and fair view of the assets, financial position and earnings 

of the company in accordance with the International Financial 

Reporting Standards (IFRS), as they are applied in the EU. This 

responsibility includes: The design, implementation and maintaining 

of an internal control system, insofar as this is important 

for the compiling of consolidated financial statements and presenting 

a true and fair view of the assets, financial position and 

earnings of the company so that these consolidated financial 

statements are free of material misstatements, whether due to 

intended or unintended errors; the selection and application of 

suitable accounting policies; the submission of estimates which, 

taking into account the given framework conditions, appear appropriate. 

My responsibility consists of issuing an auditing opinion about 

these consolidated financial statements based on my audit. My 

audit was conducted in accordance with the applicable Austrian 

legal regulations. These standards require that I plan and perform 

the audit in such a manner that I can form a reasonable opinion 

148 


domiciled in 4020 Linz, Europaplatz 1a, 

as to whether the financial statements are free of material 

misstatement. 

An audit includes the implementation of auditing actions to obtain 

auditing evidence in respect of the amounts and other details 

given in the consolidated financial statements. The choice 

of auditing actions is left to the obligatory discretion of the auditor, 

taking into account his assessment of the risk of material 

misstatements occurring, whether due to intended or unintended 

errors. In assessing this risk, the auditor takes into account 

the internal control system, insofar as it is important for compiling 

the consolidated financial statements and presenting a true 

and fair view of the assets, financial position and earnings of 

the company, in order to determine suitable auditing actions taking 

account of the framework conditions, not however to submit 

an auditing opinion about the effectiveness of the company’s 

internal control system. Furthermore, the audit also includes the 

assessment of the appropriateness of the accounting principles 

used and material estimates made by the legal representatives 

of the company, as well as the evaluation of the overall financial 

statement presentation. 

I believe that I have obtained sufficient and suitable auditing 

proof, so that my audit provides a reasonable basis for my opinion. 

The results of my audit gave no reason for objection. On the 

basis of the knowledge gained during the audit, in my judgement 

the consolidated financial statements comply with the legal 

regulations and present a true and fair view of the company’s 


assets and financial position as at 31.12.07 and the company’s 

earnings and cash flow in the financial year from 1 January 2007 to 

31 De cember 2007, in accordance with the International Financial 

Reporting Standards (IFRS), as they are applied in the EU. 

The unqualified auditor’s certificate was issued for the un - 

abridged, German-language version of the consolidated 

financial statements. 



Auditing association: Österreichischer Raiffeisenverband 

Auditor: 

Ursula Palle-Futschik 

Association Auditor 

As a result of Austrian legal regulations, the group management 

report is to be audited as to whether it is consistent with 

the consolidated financial statements and whether other details 

given in the group management report give a misleading 

impression of the group’s financial position. 

In my opinion, the group management report is consistent with 

the consolidated financial statements. 

149 

The Group

Statement of the Managing Board 

The managing board of the Raiffeisenlandesbank Oberösterreich Aktiengesellschaft declares that the annual financial statements 

as at 31 December 2007 compiled according to Austrian Business Code/Austrian Banking Act regulations and the consolidated 

financial statements as at 31 December 2007 compiled according to the International Financial Reporting Standards (IFRS) present 

a true and fair view of the assets, financial position and earnings of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft 

and of the companies included in the consolidation, in their entirety. 

Equally, the management report and the group management report for the financial year 2007 present a true and fair view of the 

assets, financial position and earnings of the company and the group and give information about business performance and the 

effects of existing and future risks to business activities. 

150 













Georg Starzer 





Report of the Supervisory Board 

The Supervisory Board of Raiffeisenlandesbank Ober österreich 

Aktiengesellschaft has fulfilled the tasks incumbent upon 

them according to the law and the company articles for 

the financial year 2007. The Managing Board has reported 

regularly, promptly and comprehensively about important 

business transactions and the situation and development of 

the bank and the group. 

Three committees (executive and personnel committee, auditing 

committee and balance sheet committee) have effectively 

supported the entire Supervisory Board in the completion of 

its work. 

The Österreichischer Raiffeisenverband and KPMG Austria 

GmbH have audited the accounts, the annual financial statement 

according to Austrian Business Code/Austrian Banking 

Act regulations and the consolidated financial statements 

according to the International Financial Reporting Standards 

(IFRS) as at 31 December 2007 and the management report 

and the group management report for the financial year 2007. 

The audits did not give cause for any reservations and all legal 

regulations were complied with in full. Consequently, the un - 

qualified audit certificate was given. The Supervisory Board 

noted with approval the results of the audit. 

The Supervisory Board has also audited the annual financial 

statements and the consolidated financial statements as at 

31 December 2007, the management report and the group 


management report for the financial year 2007. It concurs 

with the result of the financial statement auditor and the 

Managing Board’s proposals as to how the profits should 

be used and approves Raiffeisenlandesbank Oberösterreich 

Aktiengesellschaft’s annual financial statement for 2007, 

which thereby adheres to Section 125 (2) of the Stock Corporation 

Act. 

The Supervisory Board would like to thank the Managing 

Board and all employees of Raiffeisenlandesbank Ober österreich 

Aktiengesellschaft and the whole group for their per - 

formance and notable success in financial year 2007. 


The Supervisory Board 

Jakob Auer 


151 

The Group

152 

SUMMARISED REPORT OF THE 

IFRS CONSOLIDATED FINANCIAL 

STATEMENTS OF RAIFFEISENLANDES- 

BANK OBERÖSTERREICH AKTIEN - 

GESELLSCHAFT AND THE ANNUAL 

FINANCIAL STATEMENTS OF THE 

UPPER AUSTRIAN RAIFFEISEN 

BANKS IN ACCORDANCE WITH 

THE AUSTRIAN BUSINESS CODE 


BALANCE SHEET 

NOTES 



Income Statement 


in EUR mill. in EUR mill. 

Interest and interest-related income 1,634.1 1,275.5 

Interest and interest-related expenses - 1,107.2 - 756.8 

Net interest income 526.9 518.7 

Risk provisions -99.6 - 88.7 

Net interest income after risk provisions 427.3 430.0 

Fee and commission income 272.7 247.1 

Fee and commission expenses - 68.2 - 63.3 

Net fee and commission income 204.6 183.9 

Trading income 18.5 9.8 

Income from designated financial instruments 12.4 12.6 

Net investment income 22.6 26.4 

Income from companies accounted for at equity 115.1 84.5 

Administrative expenses - 530.8 - 514.0 

Other operating results 78.2 72.6 

Pre-tax profit for the year 347.8 305.8 

Taxes on income and earnings - 48.3 - 28.2 

Profit for the year 299.5 277.6 

of which minority interests - 7.9 - 10.1 


153 

Raiffeisen Banking 

Group Upper Austria

Balance Sheet 

154 

ASSETS 31 Dec 2007 31 Dec 2006 


Cash and cash equivalents 271.4 257.4 

Loans and advances to banks 8,051.1 7,392.7 

Loans and advances to customers 21,105.5 17,835.1 

Trading assets 536.9 511.3 

Financial assets 8,036.3 7,315.2 

Companies accounted for at equity 657.0 546.0 

Intangible assets 1.8 3.3 

Property, plant and equipment 258.0 285.7 

Financial real estate 66.0 231.8 

Tax assets 68.3 65.7 

Other assets 234.1 242.9 

Total 39,286.4 34,687.1 

LIABILITIES 31 Dec 2007 31 Dec 2006 


Liabilities to banks 9,643.8 8,451.7 

Liabilities to customers 17,679.7 15,484.6 

Debt securities in issue 5,921.9 5,574.0 

Provisions 221.7 233.9 

Tax liabilities 61.7 49.2 

Trading liabilities 531.8 413.2 

Other liabilities 317.7 326.2 

Subordinated capital 1,306.1 1,218.0 

Equity 3,602.1 2,936.4 

of which minority interests 79.4 76.7 

Total 39,286.4 34,687.1 


Notes 

The IFRS group of Raiffeisenlandesbank Oberösterreich Aktiengesellschaft 

and the Upper Austrian Raiffeisen banks play a 

decisive role in the positive economic development of Upper 

Austria. They fulfil their responsibilities to the economy and 

society and form a positive creative force in our country. 

The benefits to our customers and co-owners are also our 

success. Raiffeisen Upper Austria is well-equipped to meet 

future challenges with clear customer orientation combined 

with competent consulting and relationship management and 

a strong local presence. 

The IFRS consolidated financial statements of Raiffeisen - 

landesbank Oberösterreich have been merged with the ABC 

annual financial statements of the 102 Upper Austrian Raiff - 

eisen banks. In financial year 2007, Raiffeisen in Upper Austria 

continued to maintain the upwards trend achieved in past 

years. Both its business volume and the development of its 

success have shown outstanding results. 


Raiffeisen in Upper Austria can report very good incomes in 

2007. Net interest income for 2007 was EUR 526.9 million. 

The commissions result rose by 10.1% to EUR 204.6 million. 

Overall, the operating result for 2007 (net interest income, net 

fee and commission income + trading income + income from 

companies balanced at equity and other operating results) 


was EUR 943.2 million, which represents an increase of 7.8% 

over the previous year, while administrative expenses grew by 

3.2% to EUR 530.8 million. The ratio of administrative expenses 

to operating results further improved to 56.3% for 2007. 

The operating result (operating income less administrative ex - 

penses) reached EUR 412.4 million in 2007. 

Compared to the previous year, pre-tax profit for the year rose 

by EUR 21.9 million or 7.3% to EUR 299.5 million. 

BALANCE SHEET 

The consolidated balance sheet total of the IFRS group of 

Raiffeisenlandesbank Oberösterreich and the Upper Austrian 

Raiffeisen banks was EUR 39.3 billion as at 31 December 

2007. An increase of EUR 4.6 billion or 11.7% was achieved 

compared to the previous year. On the assets side, 53.7% 

came from loans and advances to customers, 20.5% from 

loans and advances to banks and 20.5% from financial 

assets. On the liabilities side, EUR 17.7 billion or 45.0% of the 

balance sheet total was liabilities to customers and 24.6% or 

EUR 9.6 billion was liabilities to banks. 

Loans and advances to customers for the year rose by 

EUR 3.3 billion or 15.5% to EUR 21.1 billion. Liabilities to 

customers and debt securities in issue increased significantly 

by EUR 2.5 billion or 10.8% to EUR 23.6 billion. Balance sheet 

equity as at 31 December 2007 totalled EUR 3.6 billion. 

155 

Raiffeisen Banking 

Group Upper Austria

Imprint: 

Owner, editor and publisher: 


Europaplatz 1a 

4020 Linz 

Responsible for content: 

Harald Wetzelsberger, Otto Steininger, 

Rainer Schnabl, Alexander Strubreiter 

and the support of almost all departments 

at Raiffeisenlandesbank Oberösterreich 

Layout: MMS Werbeagentur, Linz 

Photography: Erwin Wimmer 

(Kutzler Wimmer Stöllinger FotogmbH) 

Print: Trauner, Linz und Estermann, Aurolzmünster 

156 


Europaplatz 1a, 4020 Linz, Austria 

Tel. +43 (0) 732/6596-0 

Fax +43 (0) 732/6596-2739 

E-Mail: mak@rlbooe.at 

www.rlbooe.at

Annual Report 2007

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