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23.03.2011

Results for the 2010 financial year:
Bank Austria: net consolidated profit of EUR 747 million despite negative impact of non-operating items totalling EUR 456 million

  • Operating performance after provisioning charge improved by 18 per cent to EUR 1.6 billion
    o “Sustainable” income from commercial banking business with customers significantly higher than in the previous year: net interest and net fees and commissions up by a combined 6 per cent
    o Net writedowns of loans and provisions for guarantees and commitments in Austria and CEE reduced by 19 per cent to a total of EUR 1.8 billion
  • Both Austria-based business segments and CEE Division operate profitably
  • Non-operating items have a negative impact of EUR 456 million on performance
    o Goodwill impairment charge of EUR 359 million relating to ATF Bank in Kazakhstan is the largest single item
  • Profit before tax down by 14 per cent as a result of these effects; adjusted for the goodwill impairment, profit before tax would have been up by 13 per cent
  • Net consolidated profit (without non-controlling interests) down by 32 per cent to EUR 747 million as non-operating items to be deducted and the tax charge were higher than in the previous year
  • Capital base further improved: total capital ratio rises to just over 12 per cent, Core Tier 1 capital ratio increases to 10 per cent
  • Bank Austria launches new growth initiatives in Austria and CEE on the basis of its sound equity capital and primary funds

Bank Austria’s CEO Willibald Cernko: "2010 saw two developments which offset each other: on the one hand, commercial banking business with customers recovered and the provisioning charge in Austria and Central and Eastern Europe continued to decline, so that the bank’s operating performance improved by 18 per cent compared with the previous year. On the other hand, higher non-operating items including the goodwill impairment charge relating to ATF Bank in Kazakhstan had a significant impact on bottom-line profits. If these one-off effects are not taken into account in the analysis, one can see a favourable development: the 'sustainable' income components rose strongly, customer business showed a clear upward trend, and improvements were achieved in the structure of assets and liabilities and in our capital base. Customer loans are covered by customer deposits and debt securities in issue to the extent of almost 100 per cent. With our excellent equity capital base – in terms of the core elements of equity capital, without inclusion of hybrid or participation capital, we have the strongest capital base among all major banks in Austria – we continue to support the Austrian economy through our lending operations. In 2010, lending volume in the Group grew to a total of EUR 130 billion and in Austria Bank Austria continues to be the largest
lender at single-institution level. After years of consolidation and crisis, we are now pursuing growth in Austria and Central and Eastern Europe."

 IR Release download (PDF; 234 KB)
 tables (PDF; 632 KB)