Annual General Meeting 2005 of Shareholders in Bank ... · of Shareholders in Bank Austria...

Annual General Meeting 2005of Shareholders in

Bank Austria Creditanstalt AG

Report of the Managing BoardErich Hampel, Chairman of the Managing Board

Vienna, 19 May 2005

Annual General Meeting Bank Austria Creditanstalt AG19 May 2005 | 2

4.3

6.0

9.8

11.2

July 2003 2003 2004 Q1 2005

2.71

3.40

4.09

5.63

2002 2003 2004 Q1 2005

Earnings per share in € Market value in €bn

Increase in earnings and value

+20%

+38%

+26%

+64%

+14%

+40%


Report of the Managing BoardAgenda

Introduction: Development of profits and value

Part I Management report and outlook Bank Austria Creditanstalt in 2004First quarter of 2005 and outlook

Part II Creating value – growing profitablyOptimising capital allocationNew segmentation in AustriaManagement instruments

Part III Excellence in customer businessAustriaCentral and Eastern Europe

Conclusion: BA-CA – a tradition reaching back 150 years


11.9%-10.7%18.1%8.7%1.3%

53.2%

12.8%-68.7% 29.0%11.6%34.5%20.9%36.1%

25950

309993-

-90320

-129-95

188-18170-11159

Bank Austria Creditanstalt GroupResults for 2004

2,435-417

2,0181,233

223-2,479

-73922

-8-75

-2836

-173663-61602

2004*

2,176-467

1,7091,134

220-2,479

18602120-67

-8648

-155493-51442

2003 Changein €m in %in €m

Net interest incomeLosses on loans and advancesNet interest income after LLPNet fee and commission incomeNet trading resultGeneral administrative expensesBalance of other operating inc. and exp.Operating profitNet result from investmentsAmortisation of goodwillBalance of other income and expensesNet income before taxesTaxes on incomeNet incomeMinority interestsConsolidated net income

* The figures for 2004 have not been adjusted to reflect the new IFRS rules


Losses on loans and advances in €m Risk/earnings ratio and risk margin in %

Development of net charge for losses on loansand advances of BA-CA Group

703

537

467417

2001 2002 2003 2004

26.3%

23.3%21.5%

17.1%

0.61%0.70%0.77%0.93%

2001 2002 2003 2004

Losses on loans and advancesin % of net interest income

Losses on loans and advancesin % of average risk- weighted assets(banking book)


General administrative expenses in €m Cost/income ratio in %

Development of general administrative expenses and of cost /income ratio

1,487 1,406 1,416 1,421

870 838 821

237

227 225 237

1,049

2001 2002 2003 2004

68.8%69.3%

69.9%

64.9%

62.5%

2001 2002 2003 2004 Q1 2005

General administrativeexpenses in % of operating revenues

2,4792,4792,5032,773

Depreciation and amortisation

Other administrative expenses

Staff expenses


Increase in results in Austria and CEE

Int. MarketsPrivate Cust.Corporate Cust.

221

314

13338

114

125

2003 2004

+46%

adjusted 2

3

384 561

242

420

2003 2004

+74%

adjusted 2

242 420

Operating profit of Austrian segments(1) Operating profit CEE

1 Private Customers Austria and Corporate Customers Austria (old segmentation) and International Markets2 Segment report 2003 adjusted (capital allocation and interest rate on allocated equity as in 2004)3 Private customers Austria 2003 adjusted for €37m one-off income (sale of CA-Versicherung)

in €m in €m


Customer business supports balance sheetgrowth

6,9%

7.6%

-4.5%

4.1%

15.2%

2.0%

4.7%

14.2%

8.8%

-3,000 -1,000 1,000 3,000 5,000 7,000 9,000

Change in balance sheet total

Loans and advances to customers *)

Loans and advances to banks *)

Investments

Trading assets

Primary funds

Amounts owed to banks

Trading liabilities

Shareholders´ equity

absolute Veränderung in Mio € wichtiger Bilanzpositionen

Reduction Increase

*) after loan loss provisions

Assets

Liabilities andshareholders' equity

Absolute change in main balance sheet items 2003 / 2004 in €m


Sustained further progress –record results in Q1 2005

204223 227

204

280

139 146 157 167

207

Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005

980

9.6%

6,086

977

10.1%

6,200

979

10.4%

6,439

1,014

12.3%

6,707

898

9.3%

6,0081 Excluding minorities

Net income Q1 2004 – Q1 2005 in €m

Operating revenues

ROE after taxesAvg. shareholders'equity1

Consolidatednet income

Net incomebefore taxes


69.3% 69.9%

64.9% 60.0%

8.7%9.7%

13.0%

8.3%

10.1%10.9%

13.8%

6.5%

15.0%

2002 2003 2004 2005 2006 Mid-term

Return on equity and cost/income ratio in %

New mid-term targets announced

Cost/income ratio

Return on equity after taxes

*)Effect of the change persuant to IFRS 3 (no amortisation of goodwill )

*) (old target)

(new target)


Share price performance since IPO Comparison of share performance8 July 2003 – 16 May 2005

BA-CA share: most successful bank sharesince its IPO

0% 50% 100% 150%

BA-CA

Erste

Depfa Bank

KBC

Nordea

Forennings

HVB

SEB

Den Danske

S.Paolo IMI

Soc. Génér.

156%

25

30

35

40

45

50

55

60

65

70

75

80

BA-CA

European bank shares(DJ EuroStoxx/Banks, relative)

Offe

ring

pric

e29

,00

= In

dex

base

ATX(relative)

2003 2004

EUR

2005


8%

-14%

4%

13%

21%

Change in risk-weighted assets (banking book) 31/12/2003 – 31/12/2004

Growth in higher-return businesses

CEE

Private Customers

Corporate Customers

Corporate Center

+€3.2bn

+€16bn

+€1.2bn

-€0.8bn

21.5%

ROE before taxes 2004

14.4%

12.0%

-

13.4%+€5.3bn to a total of €70.9bnBA-CA Group

International Markets is mainly driven by trading book assets.


Large Corporatesand Real Estate

PrivateCustomers

AustriaSMEs Austria

Corporate Customers Austria

Private Customers Austria

New segmentation in Austria

old

Customer groups:

Privatecustomers

Smallbusinesses SMEs Large

corporatesReal

EstateMulti-

nationals

new


New segmentation of the Austrian customer business

Q1 2005 Share of Risk/ Cost/ ROEallocated earnings income before

equity ratio ratio taxes

Private Customers Austria 12% 14.1% 76.1% 22.1%

SMEs Austria 12% 41.6% 63.8% 6.8%

Large Corp. and Real Estate 21% 12.4% 41.2% 19.4%


Excellence in customer business

Sales / Austria: focus on customer needsActive selling, campaign management supported by data mining, product standardisation to meet customers’ needs over their “life-cycle”.

Organisation/IT: sales activities separated from back-office activities. Bundling, specialisation, spin-off: Administration Services GmbH and Dataline Zahlungsverkehrsabwicklungs GmbH.

Risk management: rating/pricing; active portfolio management via secondary market.

Management system: performance transparency, value management down to micro level.

Human resources: new internal staff regulations.

International corporate businessLeading positions in trade finance and cash management; international network bank; real estate business, leasing; integrated corporate finance/syndications.

International MarketsDiversification of trading activities, customer business focusing on “corporatesolutions” and primary market.


Net income before taxes of the CEE banking subsidiariesNet income before taxes before consolidation and central costs (in €m)

138

209

281

486

92

139

321

2000 2001 2002 2003 2004 2005

Q1 Q1

+51%


Loans and deposits / CEE banking subsidiariesVolumes and growth ratesQ1 2005 yoy Balance sheet

total in €mGrowth

of loansGrowth

of depositsPoland 12,878 24% 24%Hungary 3,780 16% 22%Czech Rep. 5,064 18% 28%Slovakia 1,979 15% 22%Slovenia 1,417 56% 12%

Sub-total 25,118 22% 24%Croatia 2,978 34% 3%Romania 1,377 90% 113%Bulgaria 1,130 73% 42%Bosnia 386 100% -2%

Sub-total 5,871 53% 24%

CEE total *) 30,989 27% 24%

*) consolidated banks; excl. Serbia and Montenegro


Network of BA-CA in Central and Eastern Europe

CEE Region1

€31.7bntotal assets

1,026offices

18,215employees

4.6 millioncustomers

117 millioninhabitants

Ranking, total assets, market share (as of Dec 2004) and number of offices as of 31 March 2005

1 Incl. Eksimbanka (Serbia-Montenegro)and Hebros Bank (Bulgaria)

€2.0bn, 6%27

€12.9bn, 10%495

€5.1bn, 5%24

Czech. Rep.No. 4

SlovakiaNo. 5

PolandNo. 3

€1.4bn, 5%12

SloveniaNo. 7

€3.0bn, 9%112

CroatiaNo. 5

€386m, 8%39

BosniaNo. 4

€362m, 6%39

Serbia1

No. 5

1

MacedoniaRep. office

€1.5bn, 10%223

Bulgaria1

No. 3

€1.4bn, 5%12

Romania No. 7

€3.8bn, 6%42

HungaryNo. 7


No. 1 bank in Austria1

€117.8bn total assets18% market share 444 branches12,553 employees1.8m customers8.1m inhabitants

Bank Austria Creditanstalt -bank of the regions in theheart of Europe

The most extensivebanking network in CEE2

€31.7bn total assetsTop 3 in Poland and Bulgaria, market share of 10%Market share in all countries >5%1,026 branches18,215 employees4.6m customers117m inhabitants

Note: figures as of 31 March 2005; employees are based on FTE (full-time equivalent)1 Including employees and branches of subsidiaries supporting core banking business and other domestic subsidiaries2 Including unconsolidated subsidiaries HVB Serbia and Montenegro, Eksimbanka (Serbia) and Hebros Bank (Bulgaria)

Annual General Meeting 2005of Shareholders in

Bank Austria Creditanstalt AG

Vienna, 19 May 2005

Annual General Meeting 2005 of Shareholders in Bank ... · of Shareholders in Bank Austria...

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