Assets, financial and revenue situation

Balance Sheet Trends 2016: Assets

The balance sheet total for 2016 was EUR 6,085,300,000. Compared with 2015, this was a slight 3.2 per cent decrease, or EUR 202.8 million.

Compared with 2015, receivables from credit institutions decreased by EUR 341.6 million or 13.7 per cent. At balance sheet date, receivables with the Raiffeisen Bankengruppe Vorarlberg totalled 71.0 per cent, or EUR 1,522,300,000 (2015: 67.5 per cent or EUR 1,676,200,000). Receivables with the Zentralinstitut der Raiffeisen Zentralbank Österreich AG totalled EUR 447.1 million (2015: EUR 565.4 million). The share of foreign currency (especially in Swiss francs) totalled 47.3 per cent or EUR 1,014,700,000 (2015: EUR 1,191,400,000 or 48.0 per cent).

Receivables from customers increased by EUR 93.2 million or 6.9 per cent to EUR 1,443,400,000. In spite of an economically challenging environment, loans to commercial and private customers increased. The share of this balance sheet item in foreign currency at 31.12.2016 was 14.3 per cent or EUR 205.8 million (2015: 16.6 per cent or EUR 224.5 million).

Securities portfolios remained almost unchanged at EUR 2,198,800,000. At balance sheet date, the securities in question totalled 97.9 per cent or EUR 2,153,200,000 from debentures and other fixed-interest securities. The share of tenderable securities totalled EUR 2,119,800,000.

Participations decreased by EUR 8.5 million to EUR 178.4 million. Among other things, the decrease was due to the sale of participations in the Raiffeisen Privatbank Liechtenstein AG.

Other assets included sundry assets, prepaid expenses/accruals, deferred taxes, cash on hand and cash balances with central banks. Compared with 2015, the change was due to the capitalisation of deferred taxes and changes in deferral and clearing accounts.

Assets in EUR Million (rounded)

  2016 2015 + / - in %
Balance Sheet Total 6,085.3 6,288.1 - 202.8 - 3.2
Receivables from Banks 2,143.1 2,484.7 - 341.6 - 13.7
Receivables from Customers 1,443.4 1,350.2 + 93.2 6.9
Fixed-Interest and Non-Fixed-Interest Securities 2,198.8 2,190.3 + 8.5 0.4
Participations 178.4 186.9 - 8.5 - 4.5
Other Assets 121.6 76.1 + 45.5 59.9

Structure of Balance Sheet Assets in EUR Million (rounded)

Structure of Balance Sheet Assets in EUR Million

 

Balance Sheet Trends 2016: Liabilities

28 Liabilities with banks decreased by EUR 131.8 million or 3.7 per cent to EUR 3,444,300,000. At 31.12.2016, liabilities totalled 31.4 per cent or EUR 1,082,500,000 (2015: 27.7 per cent or EUR 991.6 million) with the Raiffeisen Bankengruppe Vorarlberg (RBGV), 1 per cent or EUR 35.6 million (2015: 3.1 per cent or EUR 111.2 million) with the Raiffeisen Zentralbank Österreich AG and Raiffeisen Bank International AG, and 7.4 per cent or EUR 255.4 million (2015: 7.5 per cent or EUR 268.7 million) with the remaining Raiffeisen Bank sector in Austria. The share of liabilities in foreign currency totalled 29.1 per cent or EUR 1,002,100,000 (2015: 18.3 per cent or EUR 656 million).

Liabilities with customers decreased slightly to EUR 886.5 million. At balance sheet date liabilities consisted of savings of EUR 67.3 million (2015: EUR 70 million), fixed-term deposits of EUR 514.5 million (2015: EUR 549.8 million) and sight deposits. The decrease in liabilities was due mainly to the withdrawal of fixed deposits.

Securitised liabilities decreased by EUR 58.9 million or 4.1 per cent to EUR 1,376,900,000. This item includes the Bank's own securities as issued. The share of covered bonds totalled 25.8 per cent or EUR 355 million (2015: 23.3 per cent or EUR 335 million).

In the period under review, provisions decreased by EUR 1.6 million to EUR 26.4 million. The basic details on provisions are included in Point 1.3.2.11. "Provisions and Other Liabilities" in the Appendix to the annual financial statement. At 31.12.2016 the equity capital shown in the balance sheet totalled EUR 294.1 million. The net income for the year 2016, which is included in this item, totalled EUR 13.5 million.

Liabilities in EUR Million (rounded)

  2016 2015 + / - in %
Balance Sheet Total 6,085.3 6,288.1 - 202.8 - 3.2
Liabilities with Banks 3,444.3 3,576.1 - 131.8 - 3.7
Liabilities with Customers 886.5 897.5 - 11.0 - 1.2
Securitised Liabilities 1,376.9 1,435.8 - 58.9 - 4.1
Provisions 26.4 28.1 - 1.7 - 5.8
Equity/Net Income for the Year 294.1 295.3 - 1.2 - 0.4
Other Liabilities 57.1 55.4 1.7 3.1

Structure of Balance Sheet Liabilities in EUR Million (rounded)

Structure of Balance Sheet Liabilities in EUR Million

Revenue situation 2016

Net interest income earned in 2016 was EUR 29.6 million, 8.5 per cent less than 2015. Net interest income earned by the RLBV is from both RLBV's own commercial and private customer business and its Treasury division. In spite of the challenging underlying conditions, earnings increased again in commercial and private customer business. The share of profits from net interest income increased to 55 per cent (2015: 46 per cent). Over the last few years, this share has constantly increased and reflects the successful implementation by the RLBV of its own customer business strategy. Compared with 2015, the contribution to profits from interbank and Treasury business decreased slightly due to the difficult environment.

Revenue from securities and participations includes revenue from investment funds and other non-fixedinterest securities of EUR 0.9 million (2015: EUR 1.4 million) and dividends from participations of EUR 3 million (2015: EUR 1.5 million).

Compared with 2015, net commission income decreased by EUR 0.5 million or 4.5 per cent. This difference is due in particular to a downward trend in the securities business.

Other operation revenue totalled EUR 12.1 million, which means a decrease of EUR 2.3 million (16.2 per cent) compared with 2015. One major factor contributing to this decrease last year was the one-off effects included in this figure from derivative business. The revenue from services, customer support and advisory by the Raiffeisen Bankengruppe Vorarlberg increased by EUR 0.2 million over 2015. Reimbursement of costs from the Raiffeisen Austria organisation and revenue from renting and leasing real estate remained constant.

Compared with 2015, total operating revenue decreased by EUR 4.9 million or 8.1 per cent to EUR 56.2 million.

Compared with 2015, personnel expenses increased by EUR 1.6 million or 6.9 per cent. This rise was due, among other things, to a one-off effect in 2015 resulting from the change in the methods used to calculate personnel provisions and accruals. An additional cost-increase was due to higher personnel costs in an IT project in the Raiffeisen Austria organisation ("One IT") and from collective agreement salary adjustments. Compared with 2015, there was a slight decrease in staff numbers (weighted according to activity level).

Expenditure on materials and value adjustments on tangible assets decreased slightly and totalled EUR 12.3 million.

in EUR Million 2016 2015 + / - in %
Net Interest Income 29.6 32.3 - 2.7 - 8.5
Revenue from Securities and Participations 3.9 2.9 + 1.0 35.3
Commission Surplus 9.8 10.2 - 0.5 - 4.5
Revenue/Expenditure from Financial Transactions 0.8 1.3 - 0.4 - 33.7
Other Operating Revenue 12.1 14.4 - 2.3 - 16.2
Operating Revenue 56.2 61.1 - 4.9 - 8.1
Personnel Expenses - 25.1 - 23.4 - 1.6 6.9
Material Expenses - 10.9 - 11.1 + 0.2 - 1.5
Value Adjustments on Property, Plant & Equipment - 1.3 - 1.4 + 0.1 - 4.2
Other Operating Expenses - 2.9 - 5.4 + 2.5 - 46.8
Operating Expenses - 40.2 - 41.3 + 1.1 - 2.7

Compared with 2015, the other operating expenses decreased by EUR 2.5 million. The basic change was due to the allocation of valuation reserves for derivatives, which were considerably lower in 2016 than in 2015. Compared with 2015, operating expenses decreased by a total of EUR 1.1 million or 2.7 per cent. The operating result was EUR 16.0 million, EUR 3.8 million less than for 2015. In 2016, additions to/disposals of value adjustments to receivables and provisions for contingent claims and credit risks totalled EUR 13.9 million.

Capital Base as of 2014 (rounded)
Capital Base as of 2014

In million EUR (rounded) 2016 2015 + / - in %
Operating Result 16.0 19.8 - 3.8 - 19.2
Balance of additions to/disposals of value adjustments to
receivables and provisions for contingent claims and
credit risks
- 13.9 - 13.6 - 0.3 1.9
Balance from additions to / disposals of value
adjustments to securities valued as financial assets and
to participations and shares in affiliated companies
7.9 27.9 - 20.0 - 71.5
Result of normal business activities (EBT) 10.1 34.1 - 24.0 - 70.5
Taxes before Income and Revenue 17.6 - 10.1 + 27.7 > 100.0
Other Taxes - 16.8 - 6.1 - 10.7 > 100.0
Net Profit for the Year 10.9 17.9 - 7.0 - 39.0

The actually identifiable risks of the Raiffeisenlandesbank Vorarlberg were assessed and adjusted in provisions for losses on loans. The new statutory evaluation provisions in the Austrian Accounting Changes Act 2014 (RÄG 2014) resulted in a positive one-off effect of EUR 6.6 million for the RLB Vorarlberg. The net amount of provisions for losses on loans includes a voluntary flat valuation adjustment in accordance with Section 57/1 of the Austrian Banking Act which was allocated EUR 14.8 million in expenses (2015: allocation EUR 9 million).

In 2016, valuation and sales revenue of the securities and participations totalled EUR 7.9 million. The major decrease of EUR 20 million was due mainly to a one-off effect in 2015 resulting from the sale of shares in companies in the industry as part of the Raiffeisen sector project "Zukunft Plus" ("Future Plus"). The net valuation, repayment and sales result from investment securities was due to a positive amount of EUR 7 million (2015: EUR 7.4 million).

The result of normal business activity (EBT) in 2016 was EUR 10.1 million. The EUR 24 million decrease was due mainly to the one-off effect (sale of companies in the industry) in 2015.

Due to special effects resulting in turn from legislative changes (RÄG 2014), income taxes totalled EUR 17.6 million.

The special effect was due to the recognition of deferred tax assets and liabilities resulting from the difference between corporate and tax-related valuations in assets, accruals, liabilities and prepaid expenses and income. The initial reporting in the balance sheet resulted in a deferred tax-reduction for the RLB Vorarlberg and hence deferred tax assets of EUR 19.4 million.

The other taxes of EUR 16.8 million (2015: EUR 6.1 million) include the Stability Charge to the Austrian government. This includes a full, oneoff special payment of EUR 10.8 million in accordance with Section 5, Subs. 1, Z. 4, of the Austrian Stability Charge Act.

The annual net profit earned in 2016 was EUR 10.9 million. Of this figure, EUR 6.9 million were allocated to the reserves. The annual net profit minus the allocation to the reserves plus a profit brought forward from 2015 of EUR 9.6 million showed net earnings for 2016 of EUR 13.5 million.

Financial Performance Indicators (rounded)

  2016 2015 + / -
Core Capital Ratio 13.0 13.3 - 0.4 PP
Total Capital Ratio 16.3 16.7 - 0.4 PP
Leverage Ratio 4.1 4.0 + 0.1 PP
Cost-Income Ratio 71.6 67.6 + 4.0 PP
Return on Equity (ROE) before Tax 3.7 12.5 - 8.8 PP
Return on Assets (ROA) before Tax 0.2 0.5 - 0.4 PP
Liquidity Coverage Ratio (LCR) for the Li-Waiver-Group VLBG 124.5 112.1 + 12.4 PP
Moody’s Rating      
Bank Deposits Baa1 Baa1  
Baseline Credit Assessment Baa3 Baa3  
Outlook Stable Negative  
Cover Funds AAA -  

 

Balance sheet at 31 december 2016

Assets

    EUR   2015
in EUR‘000
1. Cash on Hand, Balances at Central Banks
and Post Office Banks
  11,731,569.25   6,217
2. Public Sector Debt Instruments and Bills of Exchange
eligible for Refinancing at Central Banks
  784,160,744.65   812,398
a) public sector debt instruments and similar securities 784,160,744.65   812,398  
b) bills of exchange eligible for refinancing at central banks 0.00   0  
3. Receivables from Banks   2,143,098,420.47   2,484,681
a) due daily 391,318,212.73   499,792  
b) other receivables 1,751,780,207.74   1,984,888  
4. Receivables from Customers   1,443,402,651.00   1,350,223
5. Bonds and Other Fixed-Interest Securities   1,369,069,299.62   1,333,728
a) from public issuers 0.00   0  
b) from other issuers 1,369,069,299.62   1,333,728  
including:        
own debentures 0.00   0  
6. Shares and other Non-Fixed-Interest Securities   45,543,834.39   44,160
7. Participations   169,941,416.36   179,070
including:        
in banks 157,954,786.26   24,480  
8. Shares in Affiliated Companies   8,462,636.74   7,782
including:        
in banks 0.00   0  
9. Intangible Assets   204,126.96   107
10. Tangible Fixed Assets   31,059,504.84   30,088
including:        
land and buildings used by the bank for its own activities 12,372,657.74   12,929  
11. Shares in Companies with Controlling or Majority Holdings   0.00   0
including:        
nominal value 0.00   0  
12. Other Assets   59,037,907.38   38,086
13. Subscribed Capital Called But Not Yet Paid   0.00   0
14. Prepaid Expenses and Accruals   1,262,845.63   1,569
including:        
Difference per Section 906, Subs. 33, Austrian Commercial Code 0.00      
15. Deferred Taxes   18,308,815.00    
Total Assets   6,085,283,772.29   6,288,109

Liabilities

    EUR   2015
in EUR ‘000
1. Bank Liabilities   3,444,288,766.58   3,576,056
a) due daily 1,000,162,710.37   1,156,044  
b) with an agreed maturity or notice period 2,444,126,056.21   2,420,012  
2. Liabilities with Customers   886,465,799.27   897,496
a) savings deposits 67,301,275.51   70,024  
including:        
aa) due daily 0.00   0  
bb) with an agreed maturity or notice period 67,301,275.51   70,024  
b) other liabilities 819,164,523.76   827,471  
including:        
aa) due daily 304,642,416.82   277,460  
bb) with an agreed maturity or notice period 514,522,106.94   549,832  
3. Securitised Liabilities   1,376,936,245.93   1,435,848
a) bond issued 410,318,728.23   490,964  
b) other securitised liabilities 966,617,517.70   944,884  
4. Other Liabilities   54,154,446.97   52,122
5. Prepaid Expenses/Accruals   2,942,098.58   3,261
including:        
revaluation reserves per Section 906, Subs. 32, Austrian Commercial Code 0.00   0  
Difference per Section 906, Subs. 34 Austrian Commercial Code 0.00   0  
6. Provisions   26,442,362.40   28,076
a) provisions for severance payments 4,879,015.73   4,571  
b) provisions for pensions 7,278,837.49   7,380  
c) tax accruals 215,291.09   5,829  
d) other 14,069,218.09   10,296  
6a. Funds for General Banking Risks   0.00   0
7. Supplementary Capital per Part 2 Title I Chapter 4 of Regulation (EU) No. 575/2013   0.00   0
8. Additional Core Capital per Part 2 Title I Chapter 3 of Regulation (EU) No. 575/2013   0.00   0
including:        
Compulsory Convertible Bonds per Section 26a Austrian Banking Act (BWG) 0.00   0  
8b. Financial Instruments with no Voting Rights per Section 26a Austrian Banking Act (BWG)   55,832,667.68   55,833
9. Subscribed Capital   22,108,736.00   22,109
10. Capital Reserves   19,383,078.32   19,383
a) fixed 19,383,078.32   19,383  
b) not fixed 0.00   0  
11. Profit & Loss Reserves   148,199,721.37   141,262
a) statutory reserves 0.00   0  
b) reserves prescribed by Articles of Association 5,004,550.24   5,005  
c) other reserves 143,195,171.13   136,258  
12. Liability Reserves per Section 57 Subs. 5 Austrian Banking Act (BWG)   35,006,202.38   35,006
13. Net Income for the Year/Net Loss for the Year   13,523,646.91   21,657
TOTAL LIABILITIES   6,085,283,772.29   6,288,109

Assets

  EUR 2015 in EUR ‘000
Below-the-Line Items    
1. Foreign Assets 1,588,441,016.73 1,642,975

Liabilities

    EUR   2015 in EUR '000
Below-the-Line Items        
1. Contingent Liabilities   175,420,797.36   177,205
including:        
a) acceptances and endorsement liabilities on negotiated bills 0.00   0  
b) liabilities from financial guarantees and liability from provision of collateral 175,403,704.76   177,189  
2. Credit Risks   418,403,086.00   325,088
including:        
liabilities from pension repurchase agreements 0.00   0  
3. Liabilities with Trust transactions   0.00   0
4. Attributable Equity Capital per Part 2 of Regulation (EU) No. 575/2013   345,864,766.09   339,976
including:        
a) Supplementary Capital per Part 2 Title I Chapter 4 der Regulation (EU) No. 575/2013  70,811,678.58   69,014  
5. Capital Requirements per Art. 92 of Regulation (EU) No. 575/2013   2,123,766,334.10   2,033,507
including:        
a) Capital Requirements per Art. 92 Subs. 1 (a) of Regulation (EU) No. 575/2013 (core Tier 1 ratio in %)   12.95   13.32
b) Capital Requirements per Art. 92 Subs. 1 (b) of Regulation (EU) No. 575/2013 (core capital ratio in %)   12.95   13.32
c) Capital Requirements per Art. 92 Subs. 1 (c) of Regulation (EU) No. 575/2013 (total capital ratio in %)   16.29   16.72
6. External Liabilities   2,167,800,133.24   2,791,192

Income Statement 2016

Annual Financial Statements 

    EUR   2015 in EUR '000
1. Interest and Similar Income   83,297,103.47   92,308
including:        
from fixed-interest securities 44,422,873.61   48,654  
2. Interest and Similar Expenses   -56,725,420.65   -60,003
I. NET INTERST INCOME   29,571,682.82   32,305
         
3. Income from Securities and Participations   3,906,491.41   2,888
a) income from shares, other equity interests and non-fixed-interest securities 945,847.25   1,350  
b) income from participations 2,798,703.51   1,538  
c) income from shares in affiliated companies 161,940.65   0  
4. Commission Income   14,344,757.96   24,056
5. Commission Expenses   -4,561,853.03   -13,810
6. Revenue from / Expenditure on Financial Transactions   840,934.35   1,296
7. Other Operating Income   12,058,569.00   14,384
II. OPERATING INCOME   56,160,582.51   61,092
         
8. General Administrative Expenditure   -35,986,393.93   -34,542
a) personnel expenses -25,053,400.59   -23,443  
including:        
aa) wages and salaries -18,325,620.23   -17,804  
bb) expenses for statutorily-prescribed social security charges and pay-related charges and compulsory contributions -4,581,475.36   -4,572  
cc) other social security expenditure -237,540.67   -260  
dd) expenditure on pensions and other support -1,185,654.69   -1,228  
ee) allocations to pensions reserve 101,234.99   600  
ff) expenditure on severance payments and payments to company pension funds -824,344.63   -178  
b) other administrative expenditure (material expenses) -10,932,993.34   -11,099  
9. Adjustments to Assets in Asset Items 9 and 10   -1,335,953.12   -1,395
10. Other Operating Expenses   -2,861,238.78   -5,382
III. OPERATING EXPENSES   -40,183,585.83   -41,318
         
IV. OPERATING RESULT   15,976,996.68   19,774
         
11./ Balance of Releases of/Allocations to the        
 12. Value Adjustments to Liabilities and to Provisions for Contingent Liabilities   -13,870,549.37   -13,614
13./ Balance of Releases of/Allocations to the        
 14. Value Adjustments to Securities Valued as Financial Assets and to Participations   7,949,639.48   27,917
V. RESULT OF NORMAL BUSINESS OPERATIONS   10,056,086.79   34,077
         
15. Extraordinary Income   0.00   0
including:        
drawings from the Fund for General Banking Risks 0.00   0  
16. Extraordinary Expenditure   0.00   0
including:        
allocations to the General Banking Risks 0.00   0  
17. Extraordinary Result   0.00   0
(sub-total of Items 15 and 16)        
18. Taxes on Income   17,621,053.02   -10,110
including:        
from deferred taxes 19,396,751.91   0  
19. Other Taxes Unless Shown in Item 18   -16,775,211.52   -6,096
VI. ANNUAL NET PROFIT/LOSS   10,901,928.29   17,871
         
20. Movements in Reserves   -6,937,563.51   -1,785
including:        
allocation to liability reserve 0.00   0  
dissolution of the liability reserve 0.00   0  
VII. ANNUAL PROFIT/LOSS   3,964,364.78   16,086
         
21. Profit/Loss Brought Forward   9,559,282.13   5,571
VIII. NET PROFIT/NET LOSS   13,523,646.91   21,657