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11.05.2006

Results for the first three months of 2006:
Bank Austria Creditanstalt gets off to an excellent start in 2006

  • Operating profit up by 65 per cent to EUR 405 million
  • Net income after taxes and minority interests up by 49 per cent to EUR 308 million
  • Significant improvement across all business segments

In the first quarter of 2006, Bank Austria Creditanstalt (BA-CA) significantly improved its results. Operating profit rose by 65 per cent to EUR 405 million (first quarter of 2005: EUR 245 million). Net income after taxes and minority interests increased by 49 per cent to EUR 308 million (2005: EUR 207 million). The return on equity after taxes rose to 17.9 per cent (2005: 12.7 per cent). The cost/income ratio improved to 57.3 per cent (2005: 64.1 per cent).

BA-CA's CEO Erich Hampel: "We have got off to an excellent start in the new business year, enabling us to continue the course we pursued in the record year 2005. This is the result of a clear and convincing strategy which we have consistently implemented for many years."

All business segments of BA-CA contributed to the improvement in results: customer business in Austria – comprising the three business segments Private Customers, SMEs, and Large Corporates and Real Estate – generated an operating profit of EUR 153 million, an increase of 28.2 per cent (2005: EUR 119 million). Operating profit generated by the Central and Eastern Europe business segment improved by 58.9 per cent to EUR 181 million (2005: EUR 114 million). And operating profit in the International Markets business segment – comprising the bank's activities in money and capital markets – rose by 84.2 per cent to EUR 68 million (2005: EUR 37 million).

The price of BA-CA shares continued to develop favourably in the first quarter of 2005, reaching an all-time high of EUR 113.84 (intraday) on 21 February 2006. From year-end 2005 to 31 March 2006, the BA-CA share price rose by 13 per cent. Earnings per share increased by 28 per cent, from EUR 6.56 to EUR 8.37. As at 31 March 2006, the bank's market capitalisation was EUR 15.6 billion. This means that BA-CA's market capitalisation has more than tripled since the initial public offering in summer 2003.

Items in the income statement
Net interest income rose by 8 per cent to EUR 643 million compared with the first quarter of the previous year (2005: EUR 596 million). The net charge for losses on loans and advances, at EUR 110 m, matched the previous year's level (2005: EUR 110 million). As a result, net interest income after losses on loans and advances was EUR 533 million, up by 10 per cent on the previous year (2005: EUR 486 million).

Net fee and commission income and the net trading result developed very favourably: net fee and commission income rose by 26 per cent to EUR 416 million compared with the previous year (2005: EUR 330 million). The net trading result almost doubled, rising by 93 per cent to EUR 152 million (2005: EUR 79 million). General administrative expenses increased by 9 per cent to EUR 693 million (2005: EUR 634 million). This increase was due to consolidation effects and exchange rate movements in Central and Eastern Europe.

BA-CA's operating profit amounted to EUR 405 million, up by 65 per cent on the previous year's level of EUR 245 million. Net income from investments was EUR 17 million (2005: EUR 35 million). On this basis, BA-CA generated a net income before taxes of EUR 421 million, which was 50 per cent higher than in the first quarter of the previous year (2005: EUR 280 million). Net income after taxes and minority interests increased by 49 per cent to EUR 308 million (2005: EUR 207 million).

This improvement in results has the following effects on key financial data:

  • The return on equity before taxes rose to 22.3 per cent (2005: 16.1 per cent) although shareholders' equity increased from EUR 7.5 billion to EUR 7.8 billion.
  • The return on equity after taxes rose to 17.9 per cent (2005: 12.7 per cent).
  • The cost/income ratio improved to 57.3 per cent (2005: 64.1 per cent).
  • Earnings per share increased by 28 per cent, from EUR 6.56 to EUR 8.37.
  • The risk/earnings ratio (net charge for losses on loans and advances as a percentage of net interest income) improved from 18.5 per cent to 17.1 per cent.
  • The Tier 1 capital ratio was 8.2 per cent (31 December 2005: 8.3 per cent).

Business segment results
Bank Austria Creditanstalt divides its results into five business segments: Central and Eastern Europe (CEE), Private Customers Austria, SMEs Austria, Large Corporates and Real Estate, and International Markets. The bank also shows results for its Corporate Center.

Central and Eastern Europe (CEE)
Business in Central and Eastern Europe (CEE) developed very favourably in the first quarter of 2006. The combined net income before taxes generated by BA-CA's banking subsidiaries in CEE totalled EUR 204 million, an increase of 47 per cent over the previous year (2005: EUR 139 million). After consolidation effects and taxes, net income after taxes in the CEE business segment was EUR 139 million, up by 55 per cent on the previous year (2005: EUR 90 million). The return on equity after taxes was 22.2 per cent (2005: 18.7 per cent). The cost/income ratio declined from 56.2 per cent to 51.9 per cent.

Integration into UniCredit Group is further strengthening BA-CA's position in Central and Eastern Europe. The geographical reach of BA-CA as holding company for CEE operations of UniCredit Group is expanding significantly. BA-CA is responsible for 24 markets, twice the previous number, with about 300 million inhabitants. This offers Bank Austria Creditanstalt enormous growth opportunities in the coming years. 

In the first quarter of 2006, the Private Customers Austria business segment achieved a net income after taxes of EUR 39 million, which exceeded the previous year's figure by 2 per cent (2005: EUR 38 million). The return on equity after taxes was 16.4 per cent (2005: 17.3 per cent), the cost/income ratio was 76.2 per cent (2005: 76.1 per cent).

Net income after taxes generated by the SMEs Austria business segment was EUR 18 million, an increase of 59 per cent over the previous year (2005: EUR 11 million). The return on equity after taxes reached 7.5 per cent (2005: 5.1 per cent). The cost/income ratio was 57.1 per cent (2005: 63.9 per cent).

In the Large Corporates and Real Estate segment, net income after taxes increased by 12 per cent to EUR 65 million (2005: EUR 58 million). The return on equity after taxes improved to 18.5 per cent (2005: 15.2 per cent). The cost/income ratio was 45.8 per cent (2005: 48.5 per cent).

Net income after taxes in the International Markets segment was an excellent EUR 61 million, up by 76 per cent on the previous year (2005: EUR 34 million). The return on equity after taxes reached 154.7 per cent (2005: 56.6 per cent). The cost/income ratio was 44.6 per cent (2005: 56.0 per cent).

The Corporate Center recorded net income after taxes of EUR 19 million (2005: a net loss after taxes of EUR 5 million).

Balance sheet
As at 31 March 2006, Bank Austria Creditanstalt's total assets amounted to EUR 163.8 billion, an increase of 3.1 per cent over the year-end 2005 figure (31 December 2005: EUR 158.9 billion).

On the assets side of the balance sheet, loans and advances to, and placements with, banks increased by 19.4 per cent to EUR 31.5 billion (2005: EUR 26.4 billion). Loans and advances to customers amounted to EUR 86.8 billion, matching the previous year's level (2005: EUR 86.4 billion). Trading assets rose by 3.6 per cent to EUR 18.3 billion (2005: EUR 17.7 billion). Investments declined by 3.5 per cent to EUR 17.5 billion (2005: EUR 18.2 billion).

On the liabilities side, amounts owed to banks increased by 3.1 per cent to EUR 45.6 billion (2005: EUR 44.3 billion). Amounts owed to customers declined slightly, by 1.1 per cent, to EUR 61.2 billion (2005: EUR 61.9 billion). Liabilities evidenced by certificates increased by 14.8 per cent to EUR 26.1 billion (2005: EUR 22.7 billion). Trading liabilities grew by 7.5 per cent to EUR 7.3 billion (2005: EUR 6.8 billion). Shareholders' equity increased by 3.7 per cent to EUR 7.8 billion (2005: EUR 7.5 billion).

As at 31 March 2006, staff numbers in the Bank Austria Creditanstalt Group totalled 32,825, an increase of 11.7 per cent over the previous year (31 March 2005: 29,374 employees), which was mainly due to the acquisitions of Nova banjalucka banka in Bosnia, Banca Tiriac in Romania, and Eksimbanka in Serbia. As at 31 March 2006, the number of offices in the network operated by BA-CA was 1,656, up by 23.8 per cent compared with the number on 31 March 2005.


Enquiries:   Bank Austria Creditanstalt Press Relations
Martin Hehemann, tel.: +43 (0)5 05 05 57007; e-mail: martin.hehemann@ba-ca.com 
Peter N. Thier, tel.: +43 (0)5 05 05 52371; e-mail: peter.thier@ba-ca.com 

Income statement of the Bank Austria Creditanstalt Group for the first three months of 2006

 

 

 

 

 

 

1 Jan. –
31 March 2006

1 Jan. –
31 March 2005

Change

Change

 

in EUR m

in EUR m

in EUR m

in %

Net interest income

643

596

47

7.9

Losses on loans and advances

-110

-110

-0

0.1

Net interest income after losses
on loans and advances

533

486

47

9.7

Net fee and commission income

416

330

86

26.1

Net trading result

152

79

73

92.8

General administrative expenses

-693

-634

-59

9.3

Balance of other operating income
and expenses

-3

-15

12

-80.7

Operating profit

405

245

160

65.1

Net income from investments

17

35

-18

-52,5

Amortisation of goodwill

0

0

0

 

Allocation to provisions for restructuring costs

0

0

0

 

Balance of other income and expenses

-1

0

-0

> 100

Net income before taxes

421

280

141

50.3

Taxes on income

-80

-53

-27

50.6

Net income

341

227

114

50.2

Minority interests

-34

-20

-14

66.9

Net income after taxes and
minority interests

308

207

101

48.6


Income statement of the Bank Austria Creditanstalt Group
by quarter

 

 

Q1 2006

Q4 2005

Q3 2005

Q2 2005

Q1 2005

 

in EUR m

in EUR m

in EUR m

in EUR m

in EUR m

Net interest income

643

686

644

686

596

Losses on loans and advances

-110

-179

-108

-98

-110

Net interest income after losses on loans and advances

533

507

536

588

486

Net fee and commission income

416

410

381

336

330

Net trading result

152

51

68

39

79

General administrative expenses

-693

-705

-646

-637

-634

Balance of other operating
income and expenses

-3

-27

-7

1

-15

Operating profit

405

237

332

328

245

Net income from investments

17

13

229

5

35

Amortisation of goodwill

0

-4

0

0

-0

Allocation to provisions for restructuring costs

0

-48

-60

0

-0

Balance of other income
and expenses

-1

-8

-1

-2

-0

Net income before taxes

421

190

500

331

280

Taxes on income

-80

-18

-92

-63

-53

Net income

341

172

409

268

227

Minority interests

-34

-32

-38

-21

-20

Net income after taxes and minority interests

308

140

371

246

207


 Business segments

Balance sheet of the Bank Austria Creditanstalt Group at 31 March 2006

ASSETS

31 March 2006

31 Dec. 2005

Change

Change

 

in EUR m

in EUR m

in EUR m

in %

Cash and balances with central banks

3,151

3,855

-703

-18.2

Trading assets

18,305

17,665

641

3.6

Loans and advances to, and
placements with, banks

31,495

26,384

5,111

19.4

Loans and advances to customers

86,774

86,404

370

0.4

 - Loan loss provisions

-3,156

-3,232

76

-2.4

Investments

17,545

18,172

-627

-3.5

Property and equipment

1,084

1,097

-13

-1.2

Intangible assets

1,373

1,358

15

1.1

Other assets

3,901

3,956

-56

-1.4

Non-current assets classified
as held for sale

3,373

3,221

153

4.7

TOTAL ASSETS

163,846

158,879

4,967

3.1

 

 

 

 

 

LIABILITIES AND

31 March 2006

31 Dec. 2005

Change

Change

SHAREHOLDERS' EQUITY

in EUR m

in EUR m

in EUR m

in %

Amounts owed to banks

45,645

44,279

1,366

3.1

Amounts owed to customers

61,176

61,863

-687

-1.1

Liabilities evidenced by certificates

26,068

22,703

3,366

14.8

Trading liabilities

7,314

6,807

507

7.5

Provisions

4,812

4,753

59

1.2

Other liabilities

3,710

3,671

40

1.1

Subordinated capital

5,316

5,400

-84

-1.6

Liabilities directly associated with non-current assets classified as held for sale

2,006

1,884

122

6.5

Shareholders' equity

7,799

7,521

278

3.7

   of which: minority interests

683

650

33

5.0

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

163,846

158,879

4,967

3.1