Rottweiler
Forumer storico
Il Bilancio 2010 di Bawag
Riprendo i passaggi più significativi nella introduzione al Bilancio 2010 del CEO della banca:
As expected, 2010 was a difficult year for the worldwide economy as well as for the Austrian market, although there were already some signs of a slow recovery. External market factors have continued to influence the banking business across the world, for example the on-going sovereign debt crisis in the high-deficit countries.
Additionally, the consequences of the global financial crisis resulted in increased liquidity costs and higher capital requirements.
Regulators in 2010 have also reacted to the financial crisis and difficult economic environment by setting new, tighter regulations for the banking industry. Basel III has been introduced which results in higher capital and liquidity requirements for banks in the future. The Capital Requirements Directive (CRD) III has also been launched, addressing capital requirements for trading books, securitisations, as well as defining structural changes in remuneration policies. Additionally, the newly raised bank levy in Austria will become due in 2011 for the first time.
These market factors and regulatory changes will have some impact on BAWAG P.S.K. going forward. The Bank's sovereign exposure to European high-deficit countries is however limited (EUR 53 million), due to the prudent measures taken in the past year. BAWAG P.S.K.'s liquidity position remains strong, despite the increased costs and competition for savings deposits, with our Retail Banking and Small Business franchise firmly anchored in providing savings and current account products to customers across Austria. The Bank's deposit to loan ratio for the year remains strong at approximately 100 %. The Bank's capital position has also strengthened during the year. The issuance of participation capital in the amount of EUR 550 million to the Republic of Austria in December 2009 was approved by the European Commission in June 2010. In addition, through the continued diligent management of risk-weighted assets and deployment of capital during the year, the Bank has prepared well for the new capital regulations of Basel III. BAWAG P.S.K. more than fulfils the Basel III criteria already in 2010 and is confident to continue to be Basel III compliant at the time of its implementation in 2013.
In February 2011, the Remuneration Committee of the Supervisory Board approved an amended remuneration policy covering all personnel within BAWAG P.S.K., in compliance with CRD III and the Austrian Banking Act.
The bank levy in Austria has now been determined and set and will be charged against the Bank's future earnings from 2011.
Good Results in 2010
Despite the continued difficult economic environment and the increasing regulatory burden, BAWAG P.S.K. realised good results in 2010, with an annual overall net profit recorded for the first time in four years.
The IFRS profit before tax of EUR 138.1 million is significantly better than last year(EUR -35.1 million) and shows the continued successful efforts by the Bank to increase profitability and efficiency. The main drivers behind this significant increase in profits after tax include:
Net Interest Income increased by 15.2% compared to last year to EUR 649.9 million (2009: EUR 564.3 million). This reflects the deployment of our excess liquidity supporting our customers' needs and improving profitability through the consistent usage of risk-adjusted pricing.
Net Commission Income of EUR 159.4 million was slightly higher than last year (2009: EUR 154.8 million), as our cross-sell of different products to our customers continued to increase.
Gains and Losses on Financial Instruments of EUR 155.9 million was higher than last year (+12.2%). This position includes sales within the Investment Books and realised profits from the sale of associate investments, net of negative impacts from valuation movements of own issues and hedging costs.
Operating expenses for the year are EUR 618.3 million (2009: EUR 608.1 million) and were to a large extent driven by staff costs of EUR 371.7 million. Operating expenses slightly increased compared to last year (+1.7%), entirely due to restructuring provisions of EUR 25.8 million. Other administrative expenses of EUR 172.8 million are EUR 6 million lower than last year, reflecting the early benefits of our efficiency and productivity programme and continued tight cost management throughout the year.
Provisions and Impairment Losses of EUR 199.7 million are significantly lower than last year (2009: EUR 236.7 million), reflecting the continued conservative risk profile of our loan book.
Net Profit after tax and minorities for the year amounted to EUR 121.8 million (2009: EUR -30.0 million).
All business areas successfully contributed to the significantly improved Bank's results for 2010.
The Bank's Statement of Financial Position showed lending with an increase of EUR 1,222 million (+5.8%), reflecting the growth of our corporate customer business. Both Austrian Commercial Banking and the International Business were successful in deploying our excess liquidity realising reasonable risk-adjusted returns.
Our leasing business continued to grow, with new business volumes increasing our market share in Austria from 4.9% in 2008 to over 6.8% in 2010.
Financial Markets business had a good year, successfully steering the Bank through extreme market volatility while at the same time capturing new client flows and re-entering the capital markets for the first time since 2004, with EUR 2.0 billion of new funds raised.
Retail Banking and Small Business continued their focus on the development and roll-out of the new "Branch offensive", improving customer service, introducing new savings and security products as well as continuing to secure the deposit base of the Bank, despite very competitive markets.
Our subsidiary easybank had a record year in 2010, with now over 300,000 accounts and EUR 1.7 billion of customer deposits.
BAWAG Invest, the Bank's asset management business, continued to grow with fund volumes increased by over 10% and with now over EUR 4.0 billion of assets under management.
Despite the significant investments made and continued support for growth for all our businesses, the Bank maintained a strong capital and liquidity position throughout 2010.
Year end 2010 Credit tier I ratio of 10.2% was in line with 2009 of 10.4%, through continued tight management of risk-weighted assets. The Bank maintains significant excess liquidity of over EUR 5.3 billion as at 31 December 2010.
Enhanced Customer Experience through Increased Investment
A continued improvement of our customer service has always been the clear focus of the Bank. In 2010, a number of major initiatives have been launched to enhance the experience of existing and new customers:
Part of our strategy for the Bank going forward was the decision taken in 2010 to combine our two strong banking brands BAWAG and PSK Bank into one: "BAWAG P.S.K.". This brand was launched in March 2011 and will be visible as part of the branch offensive roll-out, uniting the best of our two physical distribution channels and offering our customers full banking services in all our branches going forward.
The new brand is supported by an intensified cooperation with Österreichische Post AG. Going forward, we will increase our bank branch network from 150 to 520 branches located across Austria. The implementation of the new branch concept will be done gradually over the next two years. The Bank will make significant investments of EUR 100 million as part of this branch offensive initiative, which shows our continued commitment to customers across Austria.
This branch initiative provides great opportunities and benefits to our customers, by having the largest centrally steered branch network in Austria. This significantly expands customer coverage and access across Austria, particularly in rural areas, providing full banking services and attractive products.
During 2010, the Bank opened its Customer Service Centre with extensive opening hours, providing customers with the ability to contact the Bank by telephone to meet their on-going needs and requirements.
On the other hand, Austrian Commercial Banking and Financial Markets have been merged into one Managing Board responsibility in the second half of 2010 in order to exploit platform synergies and drive enhanced cross-selling opportunities for our clients. Corporate customers will profit from the bundled know-how of the combined business areas providing business solutions to meet their needs.
Another major project launched by the Bank in the first half of 2010 was to improve efficiency and productivity through enhanced processes and increased technology investment to be able to free up resources to better serve our customers. The clear goal of the project is to further align our products, simplify processes, and to make the organisation more responsive to customers' needs. The project is on track to deliver its overall target of cost savings of EUR 60 million by the year-end 2013 while investing an incremental EUR 40 million into technology to implement new capabilities (e.g., workflow solutions) and enhance process standardisation.
Increasing efficiency and improving the customer service was the main target of our internal reorganisations in 2010. The overall organisation was streamlined in order to eliminate duplication and to provide greater accountability and responsibility, ensuring quicker decision making. This has led to decreasing administration and lower overhead costs.
Riprendo i passaggi più significativi nella introduzione al Bilancio 2010 del CEO della banca:
As expected, 2010 was a difficult year for the worldwide economy as well as for the Austrian market, although there were already some signs of a slow recovery. External market factors have continued to influence the banking business across the world, for example the on-going sovereign debt crisis in the high-deficit countries.
Additionally, the consequences of the global financial crisis resulted in increased liquidity costs and higher capital requirements.
Regulators in 2010 have also reacted to the financial crisis and difficult economic environment by setting new, tighter regulations for the banking industry. Basel III has been introduced which results in higher capital and liquidity requirements for banks in the future. The Capital Requirements Directive (CRD) III has also been launched, addressing capital requirements for trading books, securitisations, as well as defining structural changes in remuneration policies. Additionally, the newly raised bank levy in Austria will become due in 2011 for the first time.
These market factors and regulatory changes will have some impact on BAWAG P.S.K. going forward. The Bank's sovereign exposure to European high-deficit countries is however limited (EUR 53 million), due to the prudent measures taken in the past year. BAWAG P.S.K.'s liquidity position remains strong, despite the increased costs and competition for savings deposits, with our Retail Banking and Small Business franchise firmly anchored in providing savings and current account products to customers across Austria. The Bank's deposit to loan ratio for the year remains strong at approximately 100 %. The Bank's capital position has also strengthened during the year. The issuance of participation capital in the amount of EUR 550 million to the Republic of Austria in December 2009 was approved by the European Commission in June 2010. In addition, through the continued diligent management of risk-weighted assets and deployment of capital during the year, the Bank has prepared well for the new capital regulations of Basel III. BAWAG P.S.K. more than fulfils the Basel III criteria already in 2010 and is confident to continue to be Basel III compliant at the time of its implementation in 2013.
In February 2011, the Remuneration Committee of the Supervisory Board approved an amended remuneration policy covering all personnel within BAWAG P.S.K., in compliance with CRD III and the Austrian Banking Act.
The bank levy in Austria has now been determined and set and will be charged against the Bank's future earnings from 2011.
Good Results in 2010
Despite the continued difficult economic environment and the increasing regulatory burden, BAWAG P.S.K. realised good results in 2010, with an annual overall net profit recorded for the first time in four years.
The IFRS profit before tax of EUR 138.1 million is significantly better than last year(EUR -35.1 million) and shows the continued successful efforts by the Bank to increase profitability and efficiency. The main drivers behind this significant increase in profits after tax include:
Net Interest Income increased by 15.2% compared to last year to EUR 649.9 million (2009: EUR 564.3 million). This reflects the deployment of our excess liquidity supporting our customers' needs and improving profitability through the consistent usage of risk-adjusted pricing.
Net Commission Income of EUR 159.4 million was slightly higher than last year (2009: EUR 154.8 million), as our cross-sell of different products to our customers continued to increase.
Gains and Losses on Financial Instruments of EUR 155.9 million was higher than last year (+12.2%). This position includes sales within the Investment Books and realised profits from the sale of associate investments, net of negative impacts from valuation movements of own issues and hedging costs.
Operating expenses for the year are EUR 618.3 million (2009: EUR 608.1 million) and were to a large extent driven by staff costs of EUR 371.7 million. Operating expenses slightly increased compared to last year (+1.7%), entirely due to restructuring provisions of EUR 25.8 million. Other administrative expenses of EUR 172.8 million are EUR 6 million lower than last year, reflecting the early benefits of our efficiency and productivity programme and continued tight cost management throughout the year.
Provisions and Impairment Losses of EUR 199.7 million are significantly lower than last year (2009: EUR 236.7 million), reflecting the continued conservative risk profile of our loan book.
Net Profit after tax and minorities for the year amounted to EUR 121.8 million (2009: EUR -30.0 million).
All business areas successfully contributed to the significantly improved Bank's results for 2010.
The Bank's Statement of Financial Position showed lending with an increase of EUR 1,222 million (+5.8%), reflecting the growth of our corporate customer business. Both Austrian Commercial Banking and the International Business were successful in deploying our excess liquidity realising reasonable risk-adjusted returns.
Our leasing business continued to grow, with new business volumes increasing our market share in Austria from 4.9% in 2008 to over 6.8% in 2010.
Financial Markets business had a good year, successfully steering the Bank through extreme market volatility while at the same time capturing new client flows and re-entering the capital markets for the first time since 2004, with EUR 2.0 billion of new funds raised.
Retail Banking and Small Business continued their focus on the development and roll-out of the new "Branch offensive", improving customer service, introducing new savings and security products as well as continuing to secure the deposit base of the Bank, despite very competitive markets.
Our subsidiary easybank had a record year in 2010, with now over 300,000 accounts and EUR 1.7 billion of customer deposits.
BAWAG Invest, the Bank's asset management business, continued to grow with fund volumes increased by over 10% and with now over EUR 4.0 billion of assets under management.
Despite the significant investments made and continued support for growth for all our businesses, the Bank maintained a strong capital and liquidity position throughout 2010.
Year end 2010 Credit tier I ratio of 10.2% was in line with 2009 of 10.4%, through continued tight management of risk-weighted assets. The Bank maintains significant excess liquidity of over EUR 5.3 billion as at 31 December 2010.
Enhanced Customer Experience through Increased Investment
A continued improvement of our customer service has always been the clear focus of the Bank. In 2010, a number of major initiatives have been launched to enhance the experience of existing and new customers:
Part of our strategy for the Bank going forward was the decision taken in 2010 to combine our two strong banking brands BAWAG and PSK Bank into one: "BAWAG P.S.K.". This brand was launched in March 2011 and will be visible as part of the branch offensive roll-out, uniting the best of our two physical distribution channels and offering our customers full banking services in all our branches going forward.
The new brand is supported by an intensified cooperation with Österreichische Post AG. Going forward, we will increase our bank branch network from 150 to 520 branches located across Austria. The implementation of the new branch concept will be done gradually over the next two years. The Bank will make significant investments of EUR 100 million as part of this branch offensive initiative, which shows our continued commitment to customers across Austria.
This branch initiative provides great opportunities and benefits to our customers, by having the largest centrally steered branch network in Austria. This significantly expands customer coverage and access across Austria, particularly in rural areas, providing full banking services and attractive products.
During 2010, the Bank opened its Customer Service Centre with extensive opening hours, providing customers with the ability to contact the Bank by telephone to meet their on-going needs and requirements.
On the other hand, Austrian Commercial Banking and Financial Markets have been merged into one Managing Board responsibility in the second half of 2010 in order to exploit platform synergies and drive enhanced cross-selling opportunities for our clients. Corporate customers will profit from the bundled know-how of the combined business areas providing business solutions to meet their needs.
Another major project launched by the Bank in the first half of 2010 was to improve efficiency and productivity through enhanced processes and increased technology investment to be able to free up resources to better serve our customers. The clear goal of the project is to further align our products, simplify processes, and to make the organisation more responsive to customers' needs. The project is on track to deliver its overall target of cost savings of EUR 60 million by the year-end 2013 while investing an incremental EUR 40 million into technology to implement new capabilities (e.g., workflow solutions) and enhance process standardisation.
Increasing efficiency and improving the customer service was the main target of our internal reorganisations in 2010. The overall organisation was streamlined in order to eliminate duplication and to provide greater accountability and responsibility, ensuring quicker decision making. This has led to decreasing administration and lower overhead costs.
