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Unicredit Bank Austria Preliminary Results: Net Profit of About EUR 1.3 Billion for 2015

Published: February 10, 2016; 11:15 · (FriedlNews)

Unicredit Bank Austria has published its preliminary results for the 2015 financial year. Unicredit's Austrian subsidiary posts a net profit of about EUR 1.3 billion for 2015. Systemic charges including bank levies are up by EUR 89 million to EUR 326 million.

Bank Austria’s outgoing CEO Willibald Cernko / Picture: © UniCredit Bank Austria

Sound operating performance from customer business despite historically low market interest rates and persistently weak economic growth

- Lending volume up by 2.3 per cent to EUR 116.4 billion, with growth of 4.1 per cent in Austria while lending volume in CEE rose only slightly on account of negative exchange rate effects compared with the previous year
- Significant year-on-year growth of 7.9 per cent in customer deposits in Austria and CEE to a total of EUR 110.3 billion

Operating costs decline slightly, by 1.9 per cent, thanks to strict cost management

Net write-downs of loans up by 28.8 per cent to EUR 1,007 million

- The main reason for the increase is the conversion, required by law, of CHF loans in Croatia, which had a one-off impact of EUR 205 million
- Credit risk associated with Austrian customer business practically zero

Systemic charges including bank levies up by EUR 89 million to EUR 326 million, an increase of 37.7 per cent over the previous year; the figure is equal to over 20 per cent of profit before tax

After deduction of non-controlling interests, net profit of EUR 1,325 million matches the previous year’s level although the participation in profits of the Markets subdivision of UniCredit’s CIB Division expired at the end of 2014

Total capital ratio up by 142 basis points on year-end 2014, reaching 14.9 per cent; Common Equity Tier 1 capital ratio2 up by 71 basis points to 11.0 per cent

Excellent direct-funding ratio underlines the bank’s strong liquidity position

- Customer loans funded with customer deposits and debt securities in issue to the extent of 119.6 per cent

To see the full income statement click following link: "Condensed income statement of the Bank Austria Group for the year ended 31 December 2015"

Bank Austria’s outgoing CEO Willibald Cernko:

“In an environment which remained challenging in 2015 we performed well again, achieving a net profit of EUR 1.3 billion, with contributions coming from successful customer business in Austria and in the markets in Central and Eastern Europe. The clear commitment to a universal banking business model in Austria was an important decision on the future direction of our Austrian operations. This enables us to resolutely pursue the transformation, started two years ago, of our business model to respond to changes in customer needs while ensuring sustainable profitability. In this context I would like to repeat once more that the costs arising from bank levies and other systemic charges increased dramatically in the past year. In combination with special laws which subsequently change the rules for business operations at the expense of one party, namely banks, this far exceeds the limits of performance capacity. Austrian and European politicians will have to decide whether they wish to go on milking the cow or slaughter it – doing both at the same time will not work out.”