Download - Volksbank AG

Significantly improved
capital ratio
Creation of
additional jobs
Management discussion
se. This development is due to the fact that the Investkredit Group continues to adopt a low-risk
business policy, which, for example, becomes evident in the increase of communal financings that do
not need backing with regulatory capital. By contrast, Investkredit concluded a credit default swap
amounting to USD 700 m in the reporting year. Thereby the backing of Investkredit’s portfolio with
capital resources consisting of AAA and AA rated securities was reduced significantly.
CAPITAL RESOURCES. Due to a set of measures taken the core capital of the Investkredit Group
has increased significantly by 32% to EUR 358 m in the reporting year: A contribution amounting to
EUR 32 m was provided by the capital increase Capital development 1997 – 2001
of the Kommunalkredit Austria AG, which
was primarily executed by the strategic partner
Capital resources (Tier 1+2+3)
Core capital (Tier 1)
in EUR m
Dexia Crédit Local at the beginning of the year
13.2 %
12.6 %
2001. The 35% interest of the EBRD in the 12.7 %
10.4 %
Europolis CE Group with a commitment amounting
to more than EUR 105 m affected the increase
in core capital by means of revaluations of individual
real-estate management companies and
Total capital ratio
Core capital ratio
8.1 % 8.1 % 422
372 7.4 %
330
9.9 %
421
6.4 %
551
6.8 %
358
purchase price payments of some EUR 24 m.
272
248
209
228
Another measure was the capital increase of
Investkredit International Bank p.l.c., where 1997 1998 1999 2000 2001
financing investors subscribed to preference shares amounting to EUR 17 m. The formation of reserves
contributed to the increase in core capital with an amount of EUR 13 m. The total capital
resources to be taken into account according to § 23 of the Austrian Banking Act amounted to
EUR 551 m. As of 31 December 2001, the solvency ratio had increased from 9.9% of the assessment
basis to 10.4%. The Tier 1 capital ratio also rose considerably, namely from 6.4% to 6.8%. The capital
ratios, which are well above average as a result of the set of measures that have been taken, allow for
the continuation of an expansionary business policy even after the current year.
RATING. The rating for Investkredit Bank AG by Moody’s Investors Service has remained stable with
A1 in the long-term and Prime 1 in the short-term area in the reporting year. The position of Kommunalkredit
Austria AG was strengthened by the upgrading of the Moody’s Ratings from A1 to Aa3.
The Bank Financial Strength Rating for Investkredit was fixed with C- for Investkredit and C+ for
Kommunalkredit.
SOCIAL AND ENVIRONMENTAL REPORT.
STAFF. The dynamic business development is also reflected in the number of staff members. On
31 December 2001 320 employees (disregarding the Board of Management and maternity leave)
belonged to the staff of the Investkredit Group. The proportion of female employees is 53% and that
of part-time staff with contracts covering between 50% and 90% of normal working hours is 14% or
44 persons. In terms of normal working hours, this represents a staff of 305, in comparison to 278 in
the year before. The average age of employees in the Investkredit Group is just under 37. The Investkredit
Group is known for stable long-term employment relationships. Internationalisation and
more complex needs concerning financial services require innovative power and capability of
development of the staff. In 2001 the employees participated in numerous external technical and
management seminars at home and abroad. Staff members from all business segments of Investkredit
have given lectures at domestic and foreign technical events, seminars and conferences, some employees
have worked as lecturers at universities and technical colleges. In the reporting year internal
closed meetings and workshops were partly organised with the support of external systemically oriented
organisational consultants. A wide range of projects, e.g. in the fields of product development,
THE BANK FOR CORPORATES
19