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13.03.2008

Bank Austria Creditanstalt's Full Year results 2007

Date of entry: 13 March 2008

Results for the 2007 Financial Year:

Bank Austria doubles profit to EUR 2.3 billion

  • BA-CA performs strongly in a difficult year: profit before tax up by 96.4 per cent to EUR 2.7 billion
  • Operating profit reaches new record level of EUR 3.1 billion
  • Return on equity after tax improved to 17 per cent
  • Economic Value Added (EVA) up by EUR 905 million to EUR 1.3 billion, with contributions coming from all regions and business segments
  • CEE business segment accounts for 49 per cent of overall profit before tax
  • Austrian customer business achieves strong increase of close to 80 per cent(+ EUR 354 million) in profit before tax
  • Cost/income ratio further improved to 52.2 per cent

Bank Austria Creditanstalt (BA-CA), a member of UniCredit Group, one of the leading European banking groups, again performed strongly in the difficult market environment prevailing in 2007. Profit before tax was EUR 2.7 billion; while this is lower than the previous year’s level of EUR 3.3 billion, it should be noted that a direct comparison with the reported figure for 2006 is not meaningful; the previous year’s figure should be adjusted for special effects totalling a net EUR 1.9 billion resulting from the sale of the Polish bank Bank BPH and the Croatian bank Splitska banka. Adjusted for these special effects, results from current business improved by 96.4 per cent.

2007 was the first full year of Bank Austria Creditanstalt in its function as sub-holding company for CEE operations. The group of consolidated companies widened significantly. To make a comparison with 2006 more meaningful, consolidation effects resulting from the disposal of banks in 2006 and from additions to the group of consolidated companies in 2007 are to be taken into account. These include:

  • – EUR 2.2 billion: capital gains in 2006 (sale of Bank BPH S.A. and HVB Splitska banka d.d.)
  • – EUR 358 million: missing profit contribution 2006 from banks which were sold
  • + EUR 713 million: profit contribution 2006 from new CEE banks

If the consolidation effects in the CEE Division are taken into account, profit before tax for 2006 declines from EUR 3.3 billion to EUR 1.4 billion (pro forma in the new perimeter). On the basis of adjusted pro-forma figures, profit before tax improved by 96.4 per cent to EUR 2.7 billion compared with the previous year.

in Euro m 1-12/07 1-12/06 change in % Pro forma*
1-12/06
change in % Q4/07
Net interest 3,653 2,456 48.7 3,179 14.9 1,015
Dividend income 124 130 -4.6 127 -2.4 17
Income from investments in companies valued at equity 160 96 67.3 100 60 47
Net interest income 3,936 2,681 46.8 3,406 15.6 1,079
Net fee and commission income 2,124 1,667 27.4 1,808 17.5 550
Net trading income 141 348 -59.6 480 -70.6 -39
Net other operating income/expenses 214 66 >100 131 63.4 42
TOTAL REVENUES 6,414 4,762 34.7 5,825 10.1 1,632
Staff expenses -1,836 -1,606 14.3 -1,890 -2.9 -505
Other administrative expenses -1,243 -903 37.6 -1,179 5.4 -370
Expenses recovery 4     1   1
Writedowns of tangible/intangible assets -270 -248 9.1 -330 18.2 -67
OPERATING EXPENSES -3,346 -2,757 21.4 -3,397 -1.5 -941
OPERATING PROFIT 3,069 2,005 53.0 2,428 26.4 691
Provisions for risks and charges -75 -111 -32.4 -143 -47.6 -34
Goodwill impairment   -8   -8    
Net writedowns of loans -483 -679 -28.9 -715 -32.4 -128
Net income from investments 268 2,313** -88.4 93 >100 49
Integration costs -33 -248 -86.7 -257 -87.2 -13
PROFIT BEFORE TAX 2,745 3,272 -16.1 1,398 96.4 565
Income taxes -382 -140 >100 -240 59.2 -34
NET PROFIT 2,364 3,132 -24.5 1,158 >100 531
Minority interests -106 -111 -4.3 -105 1.0 -24
CONSOLIDATED PROFIT 2,258 3,022 -25.3 1,053 >100 507

 * excluding Bank BPH and HVB Splitska banka; including transferred CEE subsidiaries from UniCredit and HVB.
 ** including capital gain out of the sale of Bank BPH and HVB Splitska banka

1-9/07

1-9/06

ROE after taxes

17.0% 15.8%***

Cost/income ratio

52.2% 57.9%

Risk/earnings ratio

12.3% 25.3%

*** adjusted for the capital gain Bank BPH and HVB Splitska banka and the one-off increase in the provisioning charge.

in Euro bn

30/09/07

31/12/06

change in %

Total assets

209.2 154.3 35.6

Equity (without minority interests)

14.7 9.9 47.8

Tier 1 ratio

8.76% 11.62%  

Enquiries:
Günther Stromenger
Investor Relations Bank Austria Creditanstalt
phone: +43 (0) 50505 - 87230
e-mail: guenther.stromenger@ba-ca.com

Issuer:
Bank Austria Creditanstalt AG
Schottengasse 6-8. 1010 Vienna. Austria
e-mail:   IR@ba-ca.com
Internet: http://ir.ba-ca.com

Share:
ISIN: AT0000995006    

Listed:
Vienna, Standard Market Auction
Warsaw, main market

Largest bonds by volume issued:
ISIN:                  Stock exchanges:
xs 0211008544    Luxembourg
xs 0206399627    Luxembourg

Further stock exchanges where bonds are admitted to listing:
Vienna, Frankfurt, Stuttgart, Paris, Zurich