Results for the first three months of 2008:
Bank Austria: consolidated profit of EUR 410 million in the first quarter
- Continued strong growth in Central and Eastern Europe: CEE Division generates 38 per cent increase in its profit before tax
- Net interest income and net fees and commissions grow by a combined 17 per cent to EUR 1.7 billion, trading loss of EUR 143 million weighs down on operating profit
- Costs1 are under control, rising by 1 per cent compared with the first quarter of 2007
Bank Austria, a member of UniCredit Group, held its own in an exceptionally difficult market environment. The bank’s performance reflects continued strong growth in Central and Eastern Europe, good business trends in Austria, and a favourable development of costs. However, Bank Austria was partly affected by the repercussions of the crisis in credit markets. The sharp decline in market prices for securitised credit risks and corporate finance transactions led to further valuation losses on the trading portfolio; this, in combination with a weaker operating performance caused by uncertainty among customers, led to a net trading, hedging and fair value loss of EUR 143 million.
In a year-on-year comparison, the trading loss in the first quarter of 2008 is particularly pronounced because the same period of the previous year saw a record performance of EUR 161 million. As this development was not fully offset by the other Divisions, consolidated profit for the first quarter of 2008 was EUR 410 million, lower than a year before (Q1 2007: EUR 535 million).
1 Normalised to exclude consolidation-related cost effects resulting from the acquisition of the two new banks in Kazakhstan and Ukraine.
IR Release download (PDF; 58 KB)
Interim Report at 31 March 2008 (666 KB)