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– In our Private Banking division, we will generate further growth
through our good positioning in the business with affluent customers.
In the process we will benefit from our appearance as a strong local
bank with more than 40 sites in Germany and the close proximity
and high frequency of communications. More new customers can
be won in the new financial year through our structured, comprehensive
advisory approach and our excellent service quality.
However, competition in the market for very affluent customers will
be much fiercer than in the past, particularly in view of the latest
regulatory requirements. An increasing number of not only national
but also foreign competitors are entering the market and can intensify
the competitive situation along with a risk of falling margins.
If the uncertainty of customers and the resulting restraint in their
investment behaviour persists, the earnings situation of the Private
Banking division could be negatively affected.
– HVB Group will proactively exploit opportunities arising from change
and consolidation processes in Germany within the framework of
a specialised business model with a clear emphasis on Germany.
Due to the uncertainty of the consolidation and concentration in the
German banking sector, it remains questionable as to how future
earnings potential will be distributed between competitors and
at what expense market shares can be won. Fiercer competition
associated with this situation could negatively affect the earnings
situation of HVB Group.
– HVB Group can respond swiftly and flexibly to expansion opportunities
arising on the market. On account of its excellent capital base,
it is already well equipped for any tightening of regulatory requirements
and will be able to actively operate in the market even in that
kind of scenario. If the statutory and regulatory framework should
continue to become even more stringent as a consequence of the
sovereign debt crisis and financial crisis, this could also lead to
further expenses for the technical implementation of these additional
requirements in addition to higher capital costs.
– HVB Group continues to exploit further cross-selling potential in
all customer groups and the opportunities to support customers
demanding cross-border financial services in other core markets of
UniCredit as well as further improve operating income by creating
and using new products for all customer segments through product
factories with tailored solutions.
– For years, HVB Group has been developing into a bank with strong
and consistent cost management. The ability to manage costs is
well developed throughout the Bank. It is seeking to further improve
operating costs in the coming years, also through the realisation of
synergies by optimising all production capacity, the rationalisation
of overlapping functions and an optimisation of process flows;
and by boosting efficiency by centralising IT functions throughout
UniCredit.
– HVB Group has opportunities of winning highly qualified employees
and managers as an attractive employer. Both the size of UniCredit
and the strategic positioning of HVB Group have a beneficial impact
on the recruitment of managers and employees. Supporting female
managers at junior level is an explicit part of the strategy.
We see further potential for opportunities in our long-term orientation
to customers and other stakeholders, which is manifested in our
Mission Statement.
Our Mission Statement:
– We UniCredit people are committed to generating value for
our customers.
– As a leading European bank, we are dedicated to the development
of the communities in which we live, and to being a great place
to work.
– We aim for excellence and we consistently strive to be easy to
deal with.
– These commitments will allow us to create sustainable value for
our shareholders.
HypoVereinsbank · 2011 Annual Report 43