UniCredit Bank Austria AG
Bank Austria: Results for the first three months of 2008
Bank Austria Creditanstalt AG / Quarter Results Release of an Ad hoc announcement, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Ad hoc announcement pursuant to Section 48d (1) of the Austrian Stock Exchange Act (§ 48d (1) BörseG) Bank Austria's first quarter results 2008 Date of entry: 08 May 2008 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 Costs 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). Items in the income statement Net interest income in the first quarter of 2008 increased by 26 per cent to EUR 1,125 million (Q1 2007: EUR 890 million). Net fees and commissions were EUR 519 million, slightly exceeding the high level of the previous year (Q1 2007: EUR 517 million). The net trading, hedging and fair value result fell sharply, turning from an exceptionally strong performance in the first three months of the previous year (Q1 2007: net income of EUR 161 million) to a net loss of EUR 143 million in the wake of the credit market crisis, which persisted in the first quarter of 2008. Valuation losses – these are marking-to-market adjustments to market prices as at 31 March 2008 with no further write-offs – on the structured credit portfolio totalled EUR 141 million and are fully reflected in the income statement. Operating expenses rose by 11 per cent to EUR 941 million (Q1 2007: EUR 849 million) as a result of a consolidation effect. The increase is due to the acquisition of the two new banks in Kazakhstan and Ukraine. Without this effect, i.e. calculated on a normalised basis, operating expenses increased by only 1 per cent or EUR 11 million compared with the same period of the previous year. The net trading, hedging and fair value loss had an impact on operating profit for the first quarter, which amounted to EUR 603 million, down from EUR 769 million for the first quarter of the previous year. As a result of the consolidation effect in the CEE business segment, net writedowns of loans and provisions for guarantees and commitments increased by 47 per cent to EUR 173 million (Q1 2007: EUR 117 million). Without this effect, i.e. calculated on a normalised basis, the increase was only EUR 7 million or 6 per cent, to a level of EUR 125 million. Profit before tax was EUR 520 million, down by 24 per cent from the same period of the previous year (Q1 2007: EUR 688 million). Consolidated profit after tax and minority interests amounted to EUR 410 million (Q1 2007: EUR 535 million). change in Euro m 1-3/08 1-3/07 in % Net interest 1,075 852 26.2 Dividend income 11 9 22.7 Income from investments in companies valued at equity 39 29 34.5 Net interest income 1,125 890 26.4 Net fee and commission income 519 517 0.3 Net trading income -143 161 <-100 Net other operating income/expenses 42 49 -14.9 TOTAL REVENUES 1,543 1,618 -4.6 Staff expenses -551 -502 9.8 Other administrative expenses -316 -275 15.0 Expenses recovery Writedowns of tangible/intangible assets -73 -72 1.1 OPERATING EXPENSES -941 -849 10.8 OPERATING PROFIT 603 769 -21.6 Provisions for risks and charges -7 -18 -63.0 Goodwill impairment Net writedowns of loans -173 -117 47.3 Net income from investments 101 58 74.9 Integration costs -5 -3 49.9 PROFIT BEFORE TAX 520 688 -24.5 Income taxes -86 -125 -31.3 NET PROFIT 434 563 -23.0 Minority interests -24 -29 -18.0 CONSOLIDATED PROFIT 410 535 -23.2 1-3/08 1-3/07 ROE after taxes 11.5% 16.9% Cost/income ratio 60.9% 52.5% Risk/earnings ratio 15.4% 13.2% in Euro bn change 31/03/08 31/12/07 in % Total assets 220.8 209.2 5.5 Equity (without minority interests) 14.6 14.7 0.7 Tier 1 ratio 7.3%* 8.8% * calculated in accordance with Basel II The Bank Austria Interim Report at 31 March 2008 will be published on May 15, 2008. Enquiries: Günther Stromenger Investor Relations Bank Austria phone: +43 (0) 50505 - 87230 e-mail: guenther.stromenger@unicreditgroup.at Issuer: Bank Austria Creditanstalt AG Schottengasse 6-8. 1010 Vienna. Austria e-mail: IR@unicreditgroup.at Internet: http://ir.bankaustria.at Share: ISIN: Listed: AT0000995006 Vienna. Standard Market Auction Warsaw. Main Market Largest bonds by volume issued: ISIN: Stock exchanges: Xs0211008544 Luxembourg Xs0206399627 Luxembourg Further stock exchanges where bonds are admitted to listing: Vienna. Frankfurt. Stuttgart. Paris. Zurich Contact: Günther Stromenger Investor Relations Bank Austria phone: +43 (0) 50505 - 87230 e-mail: guenther.stromenger@unicreditgroup.at 08.05.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: Bank Austria Creditanstalt AG Am Hof 2 1010 Wien Österreich Phone: 0043 (0) 50505 - 87230 Fax: 0043 (0) 50505 - 8987230 E-mail: ir@ba-ca.com Internet: www.ba-ca.com ISIN: AT0000995006 WKN: 99500 Listed: Foreign Exchange(s) Warschau, Wien End of News DGAP News-Service ---------------------------------------------------------------------------
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