Download (2.2 MB) - Volksbank AG

More documents

Recommendations

Info

52 SEGMENT REPORTING / CORPORATES highly selective basis. This prevented a drop in weighted average margins. The quality of the complete portfolio – expressed in terms of its weighted average rating – remained virtually unchanged in relation to the previous year. The proportion of transactions in the portfolio as a whole classified as sub investment grade fell below 5%. The table shows the overall level of financing in the corporate segment. By contrast to previous years, there were increases in all regional markets. The biggest growth – in absolute numbers too – was in the Central European core market. Credit risk management and syndication The care that Investkredit takes in its credit risk management is demonstrated, on the one hand, by the low rates of default and, on the other, in the employment of the most mod- CAUTIOUS CREDIT ern and innovative methods. RISK MAN<strong>AG</strong>EMENT For instance, a portfolio model has been used since 1999 to calculate credit risk and diversification. In line with its core competence in risk management and legal requirements, all responsibilities for risk assessment, analysis, management and hedging have been centralised in the “Portfolio and Risk Management” department. This ensures an objective assessment of creditworthiness and collateral as well as a consistent ongoing management of the portfolio and hedging of risk. The following decisive measures were laid down in 2004 to improve hedging and management of credit risks: the Banks to Banks syndication platform was set up and relevant competencies in portfolio and risk management were centralised in the organisation in anticipation of regulatory requirements. Banks to Banks – Investkredit’s innovative syndication platform In order to be able to employ measures used in portfolio management for the illiquid lending business as well, Investkredit developed in Banks to Banks an efficient platform for swapping credit risks. This makes opportunities that are otherwise only available with large international financing transac- www.banks2banks.com FINANCING IN THE CORPORATE SEGMENT Austria Other Core Market Rest of the World Total in EUR m 2004 2003 Change 2004 2003 Change 2004 2003 Change 2004 2003 Change Loans1) Securities 2,267 2,236 +1% 971 637 +52% 613 584 +5% 3,852 3,458 +11% financing2) 309 327 -5% 97 52 +88% 1,336 1,199 +11% 1,743 1,578 +10% Total financing 2,577 2,563 +1% 1,068 689 +55% 1,950 1,783 +9% 5,595 5,035 +11% 1) Loans and advances to customers, trust loans and provision for guarantees 2) Bonds and other fixed-income securities (except those issued by states and banks) tions accessible for all of the Bank’s lending business. That solves the conflict between seeking a balanced loan portfolio and focussing on target groups and industries. Portfolio management sets limits, according to which individual risks are restricted by grades of creditworthiness and amounts exceeding these limits are assigned to financial partners. This allows Investkredit, on the one hand, to offer its customers a high level of commitment and, on the other, to keep its risks balanced. The high level of interest shown by the banks approached demonstrates that the items offered are very attractive to financial market partners. Within a few months of being on the market, more than a dozen Austrian banks have become members of the Banks to Banks syndication platform. The www.banks2banks.com platform sets new standards for the long-standing syndication busi-
ness: High-quality documentation of the cases for syndication, a uniform contract and fast exchange of information via the Internet enable business to be processed safely and cost-efficiently. In the medium term, Investkredit wants to use this to create a marketplace for credit risks and take account of its development into a risk-trading bank. CONSULTING As a bank specialised in meeting the needs of corporates, Investkredit aims not just to provide its customers with financing instruments. Building on its long-term expertise and experience, it supports companies with extensive consulting services. In many cases, the consulting is directly connected to financing. But consulting services are also increasingly in demand as independent services. Investkredit’s consulting activities are therefore partly offered through subsidiaries with their own market presence. On the one hand, this allows an additional group of customers to be addressed, who would not be accessible with financing products alone. On the other hand, it strengthens Investkredit’s strategic positioning as a specialist bank capable of developing high-quality solutions optimally tuned to customers’ needs. Technical competence through ETECH CONSULT Investkredit uses ETECH CONSULT, a 100% consulting subsidiary, to offer its customers its technical competence in market and risk assessment. In many cases, a long-standing topic at Investkredit is brought up: consulting on subsidies. On the one hand, ETECH CONSULT supports customers in applying for subsidies as well as grants and on the other hand, it runs whole subsidy programmes – such as the National Agency for the EU Youth Programme – on behalf of the public sector. With its management of the A3 “Austrian Advance Automotive Technology” programme on behalf of the Federal Ministry for Transport, Innovation and SEGMENT REPORTING / CORPORATES Technology, ETECH CONSULT made a substantial contribution to this increasingly important area in the Austrian economy. 53 Market and industry surveys are a growing focus of the work at ETECH CONSULT. As part of the “go international” initiative launched by the Federal Ministry for Economic Affairs and Labour, the Austrian Federal Economic Chamber and the Oesterreichische Kontrollbank, a market survey was prepared on the construction industry in Central Europe high- INDUSTRY SURVEYS REINFORCED lighting various business development opportunities for Austrian entrepreneurs. For such surveys, which are either carried out on behalf of public-sector establishments or individual companies, ETECH CONSULT has recourse to the Bank’s core competencies. EUROPA CONSULT – the Investkredit Group’s M&A consultancy Europa Consult is the Investkredit Group’s M&A consultancy company and its strategic focus is on advising medium-sized family businesses on buying and selling companies as well as on structuring complex financing transactions. Solutions to succession issues have become an increasingly important item when giving advice to family businesses. Europa Consult accordingly makes a substantial contribution to positioning Investkredit as the Bank for Family Businesses. M&A CONSULTANCY FOR FAMILY BUSINESSES CONTINUES TO BE IN DEMAND In the year under review, Europa Consult, besides taking on 15 management buy-out mandates, also assisted a number of entrepreneurs in a consulting capacity with the sale of their companies. Kyoto Competence Centre expanded further The Investkredit Group’s Kyoto Competence Centre (Kyo-Ko) helps Austrian industry face up to the challenges related to the Kyoto Protocol and the system of trading in emissions in the EU. The Kyo-
Page 2 and 3:
120 110 100 90 80 70 60 50 40 30 20
Page 4:
THE INVESTKREDIT GROUP The speciali
Page 8 and 9: 04 CORPORATES LOCAL GOVERNMENT REAL
Page 11 and 12: STRATEGY AND SUCCESS FACTORS The di
Page 13 and 14: The main factors for business succe
Page 15 and 16: PERFORMANCE / LETTER FROM THE BOARD
Page 17: PERFORMANCE / LETTER FROM THE BOARD
Page 20 and 21: 16 PERFORMANCE / INVESTKREDIT SHARE
Page 23 and 24: MANAGEMENT REPORT 2004 MARKET ENVIR
Page 25 and 26: DEVELOPMENT OF EARNINGS AND OF THE
Page 27 and 28: Investments in real estate and mode
Page 29 and 30: 100% 90% 80% 70% 60% 50% 40% 30% 20
Page 31 and 32: members of supervisory boards not h
Page 33: Social responsibility and sustainab
Page 36 and 37: 32 MANAGEMENT REPORT / CORPORATE CO
Page 39 and 40: includes four office buildings in P
Page 41: consolidation were below expectatio
Page 44 and 45: 40 SEGMENT REPORTING / CORPORATES C
Page 47 and 48: “Together with financial investor
Page 49: vious year) was also noticeably and
Page 52 and 53: 48 SEGMENT REPORTING / CORPORATES t
Page 55: “AIG/Lincoln Polska - a Polish br
Page 60 and 61: 56 SEGMENT REPORTING / CORPORATES m
Page 63 and 64: LOCAL GOVERNMENT Structure The loca
Page 65 and 66: FACTORS OF INCREASED EARNINGS IN 20
Page 67: of the year, this was reinforced wi
Page 70 and 71: 66 SEGMENT REPORTING / REAL ESTATE
Page 76 and 77: 72 FINANCIAL STATEMENTS OF THE INVE
Page 78 and 79: 74 STATEMENT OF CHANGES IN EQUITY S
Page 80 and 81: 76 NOTES / ACCOUNTING AND VALUATION
Page 86 and 87: 82 NOTES / INCOME STATEMENT Notes t
Page 88 and 89: 84 NOTES / INCOME STATEMENT Segment
Page 90 and 91: 86 NOTES / INCOME STATEMENT (19) Ne
Page 92 and 93: 88 NOTES / INCOME STATEMENT (25) Ba
Page 94 and 95: 90 NOTES / BALANCE SHEET Notes to t
Page 96 and 97: 92 NOTES / BALANCE SHEET (35) Finan
Page 98 and 99: 94 NOTES / BALANCE SHEET Name and r
Page 100 and 101: 96 NOTES / BALANCE SHEET of EUR 6 m
Page 102 and 103: 98 NOTES / BALANCE SHEET (43) Provi
Page 104 and 105: 100 NOTES / BALANCE SHEET (46) Subo
Page 106 and 107:
102 NOTES / OTHER DETAILS AND RISK
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
114 REPORT OF THE SUPERVISORY BOARD
Page 120 and 121:
116 GLOSSARY OF TECHNICAL TERMS ABS
Page 122 and 123:
118 GLOSSARY atives, sometimes a su
Page 124 and 125:
120 GLOSSARY HELD TO MATURITY Categ
Page 126 and 127:
122 GLOSSARY MITTELSTANDSBONDS Mitt
Page 128 and 129:
124 GLOSSARY SEGMENT REPORTING Term
Page 130 and 131:
126 CORPORATE COMMUNICATIONS SERVIC
Page 132 and 133:
AUSTRIA • Frankfurt Investkredit
Page 134 and 135:
www.investkredit.at www.investmezza
show all

Download (2.2 MB) - Volksbank AG

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?