BTV VIER LÄNDER BANK - TRUST. · 2020. 9. 17. · The BTV Group at a glance BALANCE SHEET in EUR 000 000 31.12.2013 31.12.2012 C hange in % Total assets 9,589 9,496 +1.0 % Loans

TRUST.

bUSineSS RepoRT 2013

TIROLSCHWEIZ

SÜDTIROL

VENETO

BAYERNAUGSBURG

STUTTGART

MÜNCHEN

RAVENSBURG

MEMMINGEN

STAAD

BADEN-WÜRTTEMBERG

VBG

WIEN

INNSBRUCK

BREGENZ KITZBÜHELWINTERTHUR

income in eur ‚000‘000

31.12.2013 31.12.2012* change in %

net interest income 175.7 164.3 +6.9 %loan loss provisions in credit transactions –46.9 –39.9 +17.4 %net commission income 45.3 42.3 +7.0 %operating expenses –96.0 –92.8 +3.4 %Annual net profit before tax 82.1 70.1 +17.1 %Group net profit for the year 64.4 60.7 +6.1 %

the btv Group at a glance

balance sheet in eur ‚000‘000

31.12.2013 31.12.2012 change in %

total assets 9,589 9,496 +1.0 %loans and advances to customers after loan loss provisions 6,197 6,193 +0.1 %Primary funds

– of which savings deposits – of which securitised debt including subordinated capital

6,7161,1761,288

6,5831,2731,188

+2.0 %–7.6 %+8.5 %

Equity 913 846 +8.0 %managed deposits 11,546 11,369 +1.6 %

eQuitY (under austrian laW - bWG) in eur ‚000‘000

31.12.2013 31.12.2012 change in %

risk-weighted assets 6,055 5,992 +1.1 %own funds– of which core capital (tier 1)

964867

995806

–3.1 %+7.5 %

surplus own funds 480 516 –7.0 %core capital ratio 13.33 % 12.45 % +0.88 %-Pkt.total capital ratio 15.93 % 16.61 % –0.68 %-Pkt.

comPanies percentage points

31.12.2013 31.12.2012* change in %-pp

Return on equity before tax (RoE) 9.34 % 8.69 % +0.65 %-ppReturn on equity after tax 7.32 % 7.52 % –0.20 %-ppcost/income ratio 43.3 % 44.2 % –0.9 %-pprisk/earnings ratio 26.7 % 24.3 % +2.4 %-pp

resources number

31.12.2013 31.12.2012 change number

Weighted average number of employees (white collar) 766 779 –13number of branches 37 37 +0

KeY indicators for btv shares 31.12.2013 31.12.2012*

Number of ordinary no par value shares 22,500,000 22,500,000number of preference no par value shares 2,500,000 2,500,000Top price of ordinary/preference share in EUR 19.50/16.60 21.00/17.50Bottom price of ordinary/preference share in EUR 17.30/15.45 15.80/14.00Closing price of ordinary/preference share in EUR 19.50/16.50 17.00/15.50market capitalisation in eur ‚000‘000 480 421ifrs ePs in eur 2.58 2.44P/E ratio, ordinary share 7.6 7.0P/e ratio, preference share 6.4 6.4

shareholder structure

btv shareholder structure bY size of holdinG

*) Shareholders who form part of the syndicate agreement.

37,53 % cabo beteiligungsgesellschaft m.b.h., vienna

13,59 % bKs bank aG, Klagenfurt *)

13,22 % oberbank aG, linz *)

19,42 % Widely spread shareholdings

13,60 % Generali 3 banken holding aG, vienna *)

2,28 % Wüstenrot Wohnungswirtschaft reg. Gen.m.b.h., salzburg *)

btv shareholder structure bY votinG riGhts








Germany btv leasingvienna

albertinaplatz firmenkundentegetthoffstraße 71010 Wient +43/(0)5 05 333-8723f +43/(0)5 05 [email protected]

albertinaplatz Privatkundentegetthoffstraße 71010 Wient +43/(0)5 05 333-8744f +43/(0)5 05 [email protected]

staadhauptstrasse 199422 staadt +41/71/85 810-10f +41/71/85 810-11 (Privatkunden)f +41/71/85 810-12 (firmenkunden)[email protected]

Bavaria

augsburgnagahama-allee 7586153 augsburgt +49/821/59 980-8f +49/821/59 980-7144 (Privatkunden)f +49/821/59980-7111 (firmenkunden)[email protected]

memmingenflach villabuxacher straße 187700 memmingent +49/8331/92 77-8f +49/8331/92 [email protected]

münchenneuhauser straße 580331 münchent +49/89/255 44 730-8f +49/89/255 44 [email protected]

Baden-Württemberg

ravensburg /Weingartenfranz-beer-straße 11188250 Weingartent +49/751/56 116-0 f +49/751/56 [email protected]

stuttgartindustriestraße 470565 stuttgart (vaihingen)t +49/711/787 803-8f +49/711/787 [email protected]

btv headquarters

innsbruck head officestadtforum 16020 innsbruckt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

business area Private clientst +43/(0)5 05 333-1111f +43/(0)5 05 [email protected]

business area corporate clients t +43/(0)5 05 333-1301f +43/(0)5 05 [email protected]

business area institutional clients and banks t +43/(0)5 05 333-1204f +43/(0)5 05 [email protected]

service centert +43/(0)5 05 [email protected]

finance & controllingt +43/(0)5 05 333-1430f +43/(0)5 05 [email protected]

corporate auditt +43/(0)5 05 333-1534f +43/(0)5 05 [email protected]

credit managementt +43/(0)5 05 333-1361f +43/(0)5 05 [email protected]

marketing andcommunikationt +43/(0)5 05 333-1403f +43/(0)5 05 [email protected]

human resourcest +43/(0)5 05 333-1464f +43/(0)5 05 [email protected]

legal and corporate investmentst +43/(0)5 05 333-1501f +43/(0)5 05 [email protected]

switzerland

btv stadtforum6020 innsbruckt +43/(0)5 05 333-2028f +43/(0)5 05 [email protected] www.btv-leasing.com

bregenzKaiserstraße 336900 bregenzt +43/(0)5 05 333-6006f +43/(0)5 05 333-6075

Wien albertinaplatztegetthoffstraße 71010 Wient +43/(0)5 05 333-8818f +43/(0)5 05 333-8869

btv leasing schweiz aGstaadhauptstrasse 199422 staadt +41/71/85 810-74f +41/71/85 810-12

Winterthurzürcherstrasse 468400 Winterthurt +41/52/20 40 450f +41/52/20 40 452

btv leasing deutschland GmbhGeschäftsstelle münchenneuhauser straße 580331 münchent +49/89/255 44 730-7542f +49/89/255 44 730-7541

augsburgnagahama-allee 7586153 augsburgt +49/821/59 980-7170f +49/821/59 980-7166

ravensburg /Weingartenfranz-beer-straße 11188250 Weingartent +49/751/56 116-7231f +49/751/56 116-7244

stuttgartindustriestraße 470565 stuttgart (vaihingen)t +49/711/78 78 03-7450f +49/711/78 78 03-7459

bludenzWerdenbergerstraße 146700 bludenzt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

bregenzKaiserstraße 336900 bregenzt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

bregenz vorklostermariahilfstraße 45 a6900 bregenzt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

dornbirnKlostergasse 86850 dornbirnt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

feldkirchbahnhofstraße 86800 feldkircht +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

Götzisim buch 66840 Götzist +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

Wolfurtunterlinden 236922 Wolfurtt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

ehrwaldKirchplatz 21 a6632 ehrwaldt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

imstdr.-Pfeiffenberger-str. 186460 imstt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

landeckmalser straße 346500 landeckt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

reutteuntermarkt 236600 reuttet +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

söldendorfstraße 316450 söldent +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

telfsanton-auer-straße 26410 telfst +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

Kirchbichlfirmenkundene3 Wirtschaftspark Kirchbichleuropastraße 86322 Kirchbichlt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

Kitzbühelvorderstadt nr. 96370 Kitzbühelt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

Kufsteinoberer stadtplatz 46330 Kufsteint +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

Mayrhofenhauptstraße 4406290 Mayrhofent +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

schwazinnsbrucker straße 56130 schwazt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

st. Johann in tiroldechant-Wieshofer-str. 76380 st. Johann in tirolt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

Wörglbahnhofstraße 186300 Wörglt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

innsbruck-dezamraser-see-straße 56 a6020 innsbruckt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

innsbruck-hötting*schneeburggasse 76020 innsbruck

innsbruck-mitterweg mitterweg 9 6020 innsbruck t +43/(0)5 05 333-0 f +43/(0)5 05 333-4025 [email protected]

innsbruck- Olympisches Dorfschützenstraße 496020 innsbruckt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

innsbruck-sonnparkamraser straße 546020 innsbruckt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

innsbruck-stadtforumstadtforum 16020 innsbruckt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

innsbruck-Wilten*leopoldstraße 31 a6020 innsbruck

hall in tirolstadtgraben 196060 hall in tirolt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

seefeldKlosterstraße 3976100 seefeldt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

völsbahnhofstraße 38 a6176 völst +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

lienzsüdtiroler Platz 29900 lienzt +43/(0)5 05 333-0f +43/(0)5 05 [email protected]

btv vier länder banK

tiroler oberland and außerfern

tiroler unterlandvorarlberg innsbruck stadt innsbruck land/osttirol

adresses

0,40 % btv Private foundation


* Only BTV Service zone

dates for btv shareholders

annual General meeting 14.05.2014, 10.00 a.m., stadtforum 1, innsbruckthe dividend will be published on the btv homepage and in the gazette of

the Wiener Zeitung on the day after the annual general meeting.

ex-dividend date 19.05.2014Dividend payment date 22.05.2014interim report up to 31.03.2014 Published on 23.05.2014 (www.btv.at)interim report up to 30.06.2014 Published on 22.08.2014 (www.btv.at)interim report up to 30.09.2014 Published on 28.11.2014 (www.btv.at)

* values per 31.12.2012 are adapted, see table on page 54.

TIROLSCHWEIZ

SÜDTIROL

VENETO

BAYERNAUGSBURG

STUTTGART

MÜNCHEN

RAVENSBURG

MEMMINGEN

STAAD

BADEN-WÜRTTEMBERG

VBG

WIEN

INNSBRUCK



31.12.2013 31.12.2012* change in %




31.12.2013 31.12.2012 change in %



6,7161,1761,288

6,5831,2731,188

+2.0 %–7.6 %+8.5 %



31.12.2013 31.12.2012 change in %


964867

995806

–3.1 %+7.5 %



31.12.2013 31.12.2012* change in %-pp


resources number

31.12.2013 31.12.2012 change number

























Bavaria




Baden-Württemberg



btv headquarters












switzerland












































adresses









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ManaGeMent reportGroup aCCounts

Contents

Gro

upGroup

History and strategy 12retail clients 14Corporate clients 16Institutional clients and banks 17Vienna 18switzerland 18

northern Italy 19southern Germany 19BtV Leasing 20BtV employees 21the BtV brand 22

tru

sttrust

Contents 01Letter from the Board 02Introducing the BtV management 04

BTV head office and market chiefs 06Milestones 2013 08BtV Investors‘ symposium 10

Ma

naG

eMen

t re

portManaGeMent report

economic environment 24Business trends 25Compliance and money laundering 35

report on the internal control system for the financial reporting process 36shares and shareholder structure 38outlook 40

Gro

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Group accounts 2013 42Balance sheet 44Combined profit and loss account 45statement of change in equity 46Cash flow statement 47 annex BtV Group 48 accounting and valuation principles 48

statement by the statutory representatives according to the stock exchange act 130report from independent auditors 131report from the supervisory board 133BtV Group - a 5-year overview 1353 Banks shareholder structure 137overview of 3 Banken Group – Group information 138Imprint 139

BTV Business RepoRT 2013 |01

never before were there so many opportunities. and never before were they utilised so intensively as today. A plea for more confidence and trust. the Black swan: as recently as nassim taleb‘s book of the same name, the Black swan stands for unexpected events in our highly developed, highly inter-linked, complex and global world. events which very much endanger and suddenly change the system of society.

events which we cannot prepare ourselves for because they are not foreseeable. Business leaders globally have since been on the paradoxical search for methods to identify these ominous black birds as early as pos-sible and ideally eliminate them. so Far, so GooD. But … where there is shade, there is also light. With the likes of Fukushima and the global economic crisis, the Lehman bankruptcy and civil war in north africa, we forget only all too often that there are positive events too. events which are hardly visible because they bring about positive things. events which are un-expected and improve our world quietly. events from cultural and technical processes for advancements that make cooperative rationality and spontaneous learning processes possible. events that therefore make us bet-ter as a society. they receive much less attention yet have enormous significance for COMPANIES and also for CoMpanY ManaGeMent.

a great deal is actually unknown and a few things are different to what we thought. For instance, the economic development: Who would have thought that half of the eu countries are better off today than before the crisis? or the southern european coun-tries: Who would have believed in a swift economic recovery? or the debt situation in Greece: Much lower than originally disseminated. or Germany‘s ‚economic miracle‘: registered the highest tax receipts in the history and highs of the DaX. poverty: going back to 2013.

Who could have anticipated that? probably hardly anyone in German-speaking countries. that‘s because

the belief in pending disaster is about twice as high in this country than in other cultures. Why? Because the media work in this way and because the human psy-che is obviously conditioned to be this way. the quiet, small, everyday advancements are seemingly faded out - drowned out by apocalyptic expectations.

What indicates that the probability of negative events is increasing? nothing! these are opportunities to differentiate ourselves. that is because prosperity is great enough to try new adventures and to search for a new and better solutions. Continuing crises are the best trainer for increasingly intelligent answers. Certainty, democracy and prosperity all form a solid basis that allow top performance to thrive.

nowhere else can this be better documented than in our own regions: in tyrol and Vorarlberg, in Vienna, in southern Germany from Munich to stuttgart, in switzerland from st. Gallen to Zürich and in northern Italy from Bolzano to padua. In short: in BtV country.

a better breeding ground for the banking business than in this cross-border four-country-region is not imaginable. of course, we are also increasingly con-fronted with changes. Changes that bring with them the technical, economic and cultural advancement. We use the opportunities and reinvent ourselves again and again: our closeness to our customers, a very flexible business model and the eschewal of an ego show are the central themes of what we do, true to our principle of ‚investing, not speculating‘.

the existence of BtV depends on this difference - that we do some things in a more individual way than our competitors. We demand a will to win and individual-ity, because our clients need it.

there is always a lot to do. and we are always ex-tremely grateful to our customers for this. tHanK You for the trust you have placed in BtV.

Yours

the positive surprises of our future

the crises of the past few years have left their mark - particularly in how they are perceived. that‘s because the reality is better than we believe.

Mag. Matthias Moncher peter Gaugg Gerhard Burtscher

02

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|03 02 BtV Business report 2013

Introducing the BTV management

01 Member of the BTV Board of Directors

Mag. Matthias Moncher

02 Spokesman for the BTV Board of Directors Peter Gaugg

03 Member of the BTV Board of Directors Gerhard Burtscher

04 Service centre Michael Draschl

05 Corporate audit Richard Altstätter

06 Legal and corporate investments Dr Stefan Heidinger

07 Human resources Mag. Ursula Randolf

08 Finance & controlling Mario Pabst

09 Institutional clients and banks* division Mag. Rainer Gschnitzer*

10 Business area Institutional clients and banks* Bernhard Huber

11 Marketing and Communications Mag. Matthias Ampferer

12 Credit management Dr Norbert Erhart

13 Credit management Mag. Robert Walcher*

14 Private clients division Michael Perger*

15 Northern Italy Private Mag. Manuele Lussu*

16 Corporate clients division Mag. (FH) Karl Silly*

17 Corporate clients division Mag. Robert Platter

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17

04

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18 Kitzbühel-München private** Walter schwinghammer

19 Kitzbühel-München private** Mag. Peter Kofler**

20 southern Germany corporate Dr Hansjörg Müller

21 Vienna corporate Mag. Martina pagitz

22 Vienna private Josef sebesta

23 switzerland Mag. Markus scherer

24 tiroler unterland corpo-rate

stephan Haas

25 tiroler oberland and ausserfern companies

Michael Falkner

26 Vorarlberg corporate Mag. Michael Gebhard

27 tirol and Vorarlberg private

Mag. stefan nardin

28 tirol and Vorarlberg private

Bernd scheidweiler

29 Innsbruck corporate thomas Gapp

30 BtV Leasing Gerd schwab

31 BtV Leasing Johannes Wukowitsch

32 c3 Logistik Mag. elmar schlattinger

33 3 Banks Insurance Brokers Wilfried suitner

18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

* as of 1 January 2014* as of 1 February 2014 |05 04 BtV BusIness report 2013

BtV head office and market chiefs

Chairmanpeter GauggGerhard BurtscherMag. Matthias Moncher

Corporate ClientsMag. (FH) Karl silly

– Direct supervision Corporate Financing Mag. Martin Krismer– Direct supervision payment transactions rudolf oberleiter– Direct supervision interest, currency

and liquidity management Helmut pfurtscheller

retail ClientsMichael perger

– branch business Harald Gapp– productive investment Mag. Martin Mausser – asset management Dr. Jürgen Brockhoff

BtV stadtforum Headquarters

Credit managementMag. robert Walcher

– Germany and switzerland Christoph Meister– austria and south tyrol Corporate MMMag. Johannes Öfner– private Mag. Martin schwabl – reorganisation management Mag. paul Jäger

marketing and CommuniCationsMag. Matthias ampferer

Corporate auditrichard altstätter

obmannCentral works CounCil Harald Gapp

ComplianCe and money launderingManfred unterwurzacherMag. Martin rohner

btV leasingGerd schwabJohannes Wukowitsch

Human resourCesMag. ursula randolf

– Human resources support Friedrich Braito

institutional Clients and banksMag. rainer Gschnitzer

– Client account management Mag. Bettina Lussu

legal and Corporate inVestmentsDr stefan Heidinger

FinanCe & ControllingMario pabst

serViCe CentreMichael Draschl

– transaction of securities rafael rossian– payment and commerce Christine schurl

3 banks insuranCe brokersWilfried suitner

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BtV‘s Markets

tyrol and Vorarlberg priVateMag. stefan nardinBernd scheidweiler

– Innsbruck central Claudia Kaufmann– Innsbruck West Mag. Carsten ackermann– Innsbruck east norbert peer– Hall Kurt Moser– unterinntal and Zillertal robert Lang– st. Johann Markus Lanzinger– seefeld stefan Glas– tyrolean oberland Wilfried Gabl– ausserfern urs schmid

– Bludenz patrik Lauermann– Lake Constance Christof Kogler– rhine Valley Mag. Carmen Kresser-Wolf– Montfort Hubert Kotz– Mobile housing construction Vorarlberg Manfred angermann

expert team

– productive Investment expert team Dr. peter strele – professions Innsbruck edi plattner– Mobile housing construction tyrol Ludwig Grolich– Co-support stadtforum Mag. Kerstin schuchter

innsbruCk Corporate thomas Gapp

– Key accounts and special financing– property, tourism and south tyrol Mag. Christoph Wenzl– sMes Mag. Marco natterer

tiroler oberland and ausserFern CompaniesMichael Falkner

– Imst– reutte andreas Wilhelm

tiroler unterland Corporatestephan Haas

– Co-support Mag. Günter Mader

Vorarlberg CorporateMag. Michael Gebhard

Vienna priVateJosef sebesta

– productive Investment expert team– Liberal professions, Vienna Jürgen Jungmayer

Vienna CorporateMag. Martina pagitz

– Key accounts and special financing – real estate and project financing Mag. Claus Widder– small and medium-sized companies 1 Walter tacha– small and medium-sized companies 2 Mag. nina steinacher M.BC.

nortHern italy priVateMag. Manuele Lussu

– support for productive investment Italy– east tyrol private Manfred steurer

switzerland priVate Mag. Markus scherer

– staad

switzerland CorporateMag. Markus scherer – staad– Co-support Mag. (FH) Markus Hämmerle

kitzbüHel-münCHen priVateMag. peter Kofler

– Kitzbühel– Munich– augsburg

soutHern germany CorporateDr Hansjörg Müller

– Munich Birgit Kratzer– augsburg Certified banking administrator (Dipl.-Bankbw.) Mark Weber– Memmingen Certified banking administrator Gerhard schuster (Dipl.-Bankbw.) (FH)

– ravensburg andreas Kleiner – stuttgart stefan Fischer

|07 06 BtV BusIness report 2013

Milestones 2013

It is top performance that enables BtV to grow as a brand. thanks to the considerable trust of our clients and our extremely motivated employees, we also succeeded in doing this in 2013.

JanuarY

7. BtV three Kings Concert the serbian pianist anika Vavic and Daniel Müller-schott, one of the world‘s best cellists, delighted more than 200 guests.

BtV Four Countries CashBtV scored with the successful market launch of the new Italian module for cross border pay-ment transactions.

strong strategic liquiditythe BtV division Institutional Clients and Banks increasingly backs covered bonds to strengthen the strategic liquidity.*

FeBruarY

2. BtV ski ChallengeFor the second time, BtV invited its staff to a joint skiing day - including a team competition.

strong funding support serviceFor their corporate clients in Germany, BtV is scaling up its collaboration with the funding agencies KfW and Lfa - and are expanding the business volumes significantly as a result.

active talent managementIn order to promote selected BtV talents, the bank is offering an integrated train-ing and develop-ment programme.

MarCH

sonja Braas in Fo.Ku.sFor the first time, the German artist who lives in new York is exhibiting her photos in austria: in Fo.Ku.s of the BtV stadtforum.

BtV Investment navigatorWith the BtV ap-plication navigator, investment clients receive tailored recommendations for deals, which their BtV account manager is happy to explain or imple-ment any time.

15. BtV Marketing trophyBtV rewards the top marketing talents amongst pupils at business academies in tyrol and Vorarlberg.

aprIL

Interlinking banking partnersFor the first time, the BtV division of Institutional Clients and Banks is inviting banking partners to a networking and specialist event in switzerland.

tonintonthree full evenings of musical enjoy-ment at the BtV stadtforum: with the Wolfert Brederode Quartet, nils Landgren & Johan norberg as well as pekka Kuusisto & olli Mustonen.

Well insuredWith its partner Generali, BtV is backing individual, tailored insurance solutions for its clients.

June

BtV Dragon boat race the highlight for corporate clients and for the first time also for employees: the BtV dragon boat race on Lake Constance.

Boom in export financingFor export-oriented small to medium-sized businesses, with around €30 mil-lion BtV remains the first port of call for newly revolving export financing in 2013 in Western austria.

Clients make provisionsBtV is pleased about numerous new orders for its retirement planning products.

MaY

new BtV cards new design, new chip, more services and security. For the first time, BTV is offering its clients contactless payment with their bank card.

Company succession in tourismWith a new adviser, BtV is offering expertise and active support along with an exclusive series of events.

plus 10% for primary fundsBtV has succeeded in increasing the total premiums for corporate client business by around 10% in 2013.

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new BtV Banking app With BtV‘s mobile banking, custom-ers can always keep an eye on their accounts and credit card balances.

strongest bank in Western austriare. 4. BtV has once again been named the strongest bank in Western austria by the Financial times Magazine ‚the Banker‘ (based on Core Capital tier 1).

SEPA-fitBtV gives its clients prompt and active support to organise the sepa implementation as simply as possible.

auGust

3-Banken Wohn-baubank aGafter only one year of successful exist-ence, more than €12 million have already flowed into the creation of this new living area.

expanding the in-vestment academyFor the account handlers of the asset investment team, BtV has put together a new schedule of train-ing.

BtV guarantor Don‘t speculate, invest: the new BtV guarantor offers guaranteed capital plus profes-sional investment administration.

septeMBer

new business areaFor the benefit of the sales division, the merger of the account handling of institutional clients, bank ac-count handling and money market trading has been initiated.

3. BtV autumn academyBtV is inviting students to the bank for a week to gain insight into the day-to-day operations of the company.

Dr Moser Going europe foundationBtV has already committed itself to sponsoring a total of 84 commercial high school pupils to participate in training in another european country.

oCtoBer

BtV Lienz after a good 12 months of construction, BtV Lienz is opening as the centrepiece of a new building complex at südti-roler platz in Lienz.

7. BtV property Developer‘s prize at 7. BtV is select-ing ten prize win-ners from tirol and Vorarlberg from 148 entries for its property Devel-oper‘s prize.

special engineering work corporate For the first time, BtV is publishing a trade magazine for corporate clients. Mechanical engi-neering is kicking off the series.

noVeMBer

new BtV service areas BtV is adding to its service areas in all branches. Consequently, important banking services can also be dealt with outside opening hours.

top BtV asset managementthe asset manag-ers have increased the managed volume (strategic and premium asset management) by 20%.

excellentFor the Feri eurorating and the austrian Dachfonds award, 3 Banken-Generali Invest has secured awards for its asset administration.**

DeCeMBer

‚firstfive‘ award the BtV asset management is once again counted amongst the top five asset admin-istrators in the balanced risk class (60 months).**

Corporate client - securities trading BtV increased the volume of securi-ties trading in 2013 by 10%. an increase of 20% is achieved from own Issues.

16,000 conference guests almost 16,000 guests were wel-comed by BtV at numerous events.

*as of 1 January 2014, the ‚Institutional Clients and Banks‘ division in operation.** awards and successes in the past do not guarantee success or continued growth in the future.

More information at: www.btv.at/auszeichnungen. |09 08 BtV BusIness report 2013

600 individuals interested in finance did not pass up the opportunity of the first BTV Investor Symposium. the perspectives of the three presenters could not have been more diverse. a panel discussion, which BtV chairman, Gerhard Burtscher, led, constituted the crowning achievement.

Background information, common reflections about the financial world and future recommendations for action: that‘s what the participants of the 1st BtV Investor symposium at the start of november 2013 were waiting for. and they experienced all that over two entertaining evenings.

the multi-award-winning fund manager alois Wöger-bauer, managing director of 3 Banken-Generali Invest-

ment-Gesellschaft m.b.H., discussed the prospects for a successful financial investment. On the basis of 13 incisive theses, he highlighted the current market situation and the respective implications.

Hanno settele, orF Correspondent in the united states for many years, fascinated us with personal insights into the world of american banking clients: “In the united states, a bank adviser explains to you in the same breath that you cannot get a credit card but are welcome to buy a house instead.” Chin Meyer by contrast confirmed that you can also laugh about money. as the ‚Steuerfahnder‘ (character) by siegmund von treiber, he enlightened us in his best cabaret-style on the tax system in Austria, the financial crisis and a proper risk awareness.

BtV Investors‘ symposium

For the first time, BTV sent invitations to the investor symposium in Innsbruck and Hohenems. Top-class presenters elucidate the financial world from diverse perspectives.

“Despite the economic optimism, interest rates will remain low for the time being. Waiting for higher interest rates is currently leading to a loss of purchasing power.” alois Wögerbauer, Fund Manager

“although the united states appears to be very far away, the financial markets have a strong influence on Europe. they are often a step ahead of us and always likely to surprise.” Hanno settele, Journalist

“even with a slight step back many things appear which we consider to be a matter of course - absurd: what is behind the crises? Where did the money go? Who has got it?” Chin Meyer, Financial cabaret artist

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History and strategyretail clientsCorporate clientsInstitutional clients and banks Viennaswitzerlandnorthern Italysouthern GermanyBtV LeasingBtV employeesthe BtV brand


the history of the Bank für tirol und Vorarlberg aG began on the 8th of april 1904. on this day, the impe-rially and royally appointed allgemeine Verkehrsbank in Vienna received approval to set up a stock corpo-ration from the austrian interior ministry. the bank bought the two banking houses “payr & sonvico” in Innsbruck and “Ludwig Brettauer sel. erben” in Bregenz. The first directors of the new company were

the former company directors Hans sonvico and Ferdinand Brettauer. entry into the com-mercial register on the 18th august 1904 was then only a formality – the ‚Bank für tirol und Vorarlberg‘ was born.

BtV experienced strong business expansion in its early years. numerous branch openings in north and south tyrol and in Vorarlberg were the visible signs of growth. BtV‘s reputation among the population and in economic circles grew from year to year – BtV quickly established a firm place for itself.

the wonder of the Inn at the end of the First World War, the european borders were redrawn and south tyrol given to Italy: whereupon BtV had to close its south tyrolean branches in 1922. Like Germany, austria suffered from galloping inflation which had fatal effects for the tyrolean and Vorarlberg economy. the population stormed the banks to remove their savings deposits. unlike most of their competitors, BtV was able to pay the savings deposits to its customers immediately and survive these difficult times. BTV‘s company philosophy, which still applies today – of not making any risky speculations on financial markets – has proven itself. Due to its conservative business policy, BtV was the only regional joint stock bank to survive the economic crisis and even emerged stronger from the 20th century due to the targeted takeover of domestic banks. the austrian press recently hailed BtV as the ‚Wonder from the Inn‘.

economic boomafter the second World War, gradual economic stabilisation created the financial foundations for reconstruction. By granting credit to regional compa-nies, BTV specifically boosted the domestic economy which was then experiencing the “golden” decades. In 1952, new associates joined BtV in the form of the Bank for upper austria and salzburg and the Bank for Carinthia and styria. today, oberbank, BKs Bank and BtV together form the 3 Bank Group. It stands for a voluntary union oriented towards democratic principles, which is more than ever considered an important partner of the domestic economy. For all three banks, this cooperation is a central component of their autonomy and independence.

true customer proximitythe BtV branch network was greatly expanded under the two executive boards of Dr Gerhard Moser and Dr otto Kaspar in the 1970s and 1980s of the 20th century. With this step, BtV successfully made its en-deavour “to be close to the customer” and “to expand into the regions” a reality. the personal relationship between the customer and employees was and is a central success factor for BtV. since 1986, BtV has been the only austrian regional bank to be quoted on the Vienna stock exchange - ‚a giant leap for the alpine inhabitants‘, in the eyes of the tyrolean artist paul Flora, who has captured this important event for BtV in his pictures.

european perspectivesBoth BtV directors peter Gaugg and Ma. Matthias Moncher has been giving the bank new impetus since the latter half of the 1990s. since 2013, as the third member of the board, Gerhard Burtscher has reinforced the proven management duo. Gerhard Burtscher is responsible along with peter Gaugg for the client business, whilst Mag. Matthias Moncher concentrates on the market consequences. BtV is a market leader in corporate and private client business in its key markets of tyrol and Vorarlberg. However, as one of the highest revenue banks of austria, BtV also utilises the opportunities provid-

History and strategyBank for tyrol and Vorarlberg and southern Germany. and switzerland. and northern Italy.

over 109 years, BtV has grown from the regional bank to become BtV VIer LÄnDer BanK.

“With a consistent, customer-focused strategy, BtV has succeeded in overcoming all of the crises the global and financial economy.”

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ed by contemporary europe. In 1989 the company underwent an expansion to Vienna, and in 2004, its 100th. year of existence, it opened its first foreign branch in staad am Bodensee in switzerland. BtV was successfully launched onto the market in Bavaria and Baden-Württemberg in 2006. With its new brand name BtV VIer LÄnDer BanK (the Bank of Four Countries), which was introduced in 2010, BtV is demonstrating a pledge: namely, that its commitment in all four countries is sustainable and profitable. Thus, today BTV‘s heart is not only beat-ing in tyrol and Vorarlberg, but also passionately in Vienna, Bavaria, Baden-Wuerttemberg, switzerland and northern Italy. In focus: BtV‘s clientsBtV‘s clients are at the heart of its strategy. Build-ing on their needs and desires, customer-friendly innovations are developed on an ongoing basis. With entrepreneurial spirit, BtV focuses on above-average performances, thus securing its long-term autonomy. Because of the mergers in the banking sector in past years, this autonomy has become an extraordinary advantage which is becoming ever rarer. BTV generates profits, has its outgoings in hand and masters technology to reinforce and further expand a good asset basis.

offering tailored solutionsWhether it involves investment, financing or other financial services – BTV‘s performance and above-av-erage commitment impresses its clients. BtV‘s clients value the tailored solutions and competent advice. as well as its wide range of banking products, BtV sub-sidiaries, holdings and cooperations also provide other bank-related services such as leasing or insurance. over 900 correspondent banks are available to BtV for international transactions. BTV is also the official representative in the German Chamber of Commerce and the switzerland-austria-Liechtenstein Chamber of Commerce in tyrol and Vorarlberg – a service that is very much appreciated by our export-oriented corporate clients.

approaching and listening to clientsBtV is a regional service provider specialised in han-dling money. this is apparent from solutions which are individually tailored to the customer and first and foremost from the highly qualified employees who, with their specialist expertise, constitute BtV‘s most important possession. the customer structure primarily comprises family-owned medium-sized companies and demanding private clients. Fulfilling their needs and desires in the best possible way – that is what is near and dear to BtV. BtV employees therefore actively approach clients, not only to inform them but also to discover their needs. BtV wants to remain in business, not make business. our task, which we fulfil prudently and sustainably, is not to maximise profit but to secure BtV‘s autonomy. BtV‘s clients benefit from this. especially in times like these.

“BtV‘s heart beats not only in tyrol and Vorarlberg today, but also in Vienna, southern Germany, switzerland and northern Italy.”


the Bank für tirol und Vorarlberg aG has expanded in the past decade beyond the borders of its core markets of tyrol and Vorarlberg and evolved into the BtV VIer LÄnDer BanK. the needs remain the same: Highest quality, closeness to customers, confidence and the responsible handling of clients‘ money determine the BtV strategies. Cross-border opportunities must be utilised and the regional anchoring ensures optimal solutions as well as short and swift decision-making procedures. BtV‘s independence and autonomy provide a consider-able benefit: The account managers only offer solutions which meet with clients‘ benefits and are comprehensible.

tried-and-tested principles lead to success – BtV shaped by strategythere is no patent formula – just as every individual is different, the same applies to investments. Just as very person has different personal circumstances, ex-pectations and estimations of risk, they have one ele-ment in common: you always need to follow a certain strategy to invest successfully. the BtV investment

strategy is in line with the needs and requirements of clients and provides a wide range of investment forms, from flexible savings products and custody accounts to asset management. that‘s because the correct combination must initially be

found and then consistently implemented. Continu-ous active management ensures success.

a pleasing development to BtV asset managementDespite a turbulent market environment, responsi-ble asset management has resulted in a favourable development of asset management accounts and a substantial net surplus. BtV continues to rely on transparent modules and high flexibility in the weighting of particular investment classes in order to ensure sustainable development for its clients.

attractive mortgage bondsafter a successful start to 2012, an attractive mort-gage bond was again set up in 2013. the funds from the the proceeds of the issue are continuing to flow to mortgage clients who are creating new living spaces.

Profit-yielding investment products in the low interest rate environmentthe continuing low interest rates require creative investment products to invest profitably and securely. The creation of money market floaters with lower interest limits enables investors to benefit from increases in the interest rate while having a minimum coupon in case of stagnating interest rates.

the BtV guarantee presents a promising innova-tion: For the first time, our clients can invest in a professional investment management with guaran-teed capital at the end of the maturity period. Here the BtV motto ‚speculating, not investing‘ is being implemented.

the BtV Investment navigator delivers an ideal investment model as well as a personalised invest-ment proposal based on individual attitude to risk. The investor can benefit in this way from the exper-tise of the BtV asset management team without surrendering the decision-making power.

With the fund plan, the client can invest on a monthly basis in BtV asset management‘s phi-losophy. that‘s how an investment is expanded through using a strategy.

retail clients

the search for a lucrative investment possibilities which are, at the same time, stable in value presents a challenge for BtV clients. BtV provides forward-looking solutions.

“Money earns respect. only a person with the great sense of responsibility gains the trust of the customers. BtV has been dedicated to this philosophy for almost 110 years.”

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BtV Investors‘ symposiumtop-quality speakers and great topics shaped the two BtV Investors‘ symposiums in Hohenems und Innsbruck. Here and at numerous regional small events, BtV client were offered the possibility of lively and knowledgeable exchange of views and dialogue with the Bank‘s board as well as the BtV investment managers.

Residential construction financingspecialised, residential construction advisors worked out individual financing concepts together with their clients. In 2013, BtV was able to retain new residential construction financing business at pleasantly high levels.The combined support of clients with financing in foreign currencies continued to prove effec-tive. agreements were made with many clients to reduce the foreign currency liability and therefore the risk for our customers considerably.

More service, individuality and security in payment transactions – more time for clientsIn 2013, the service areas of the BtV branches were equipped with the most up-to-date devices. With them, BtV clients have the possibility to deal with all the important bank services in the branches also outside opening hours. since July 2013, with the BtV banking app a further modern access to in-formation and services is available which raises us above our competitors through its simple usability and an excellent design.

New ATM sites in shopping centres, filling stations and transport hubs provide people with money directly there where they need it.

the realignment of BtV‘s account packages allows you to freely select the type and number of the ac-counts and cards included. this is unique in austria - a genuine unique selling point from BtV.

all of the cards issued by BtV were furnished with new designs for easier discernibility as well as a chip. In this way, customers in the BtV service area can access several accounts using only one card (multi-account function). at the same time, this investment increases counterfeit protection and makes contact-free pay-ment possible with an atM card.

Focal points in 2014: Investing with BtVBtV also positions itself in 2014 in all four markets – austria, switzerland, Germany and Italy – clearly as an investment bank. this widespread expertise is underlined from top events to trends on the interna-tional financial markets as well as regional specialist and networking events. In all its markets, BtV will continue its marketing campaign from a position of strength.

More time for clients: From 2014, BtV will be reserving the afternoons exclusively for con-sultations. Independent of the opening times, the account managers are very much there for the customers.

“Deal with another person‘s money as carefully as you would your own. Our customers benefit from this precept from BtV.”


Influenced by a sustained profitable growth, dur-ing the course of the last ten years, a considered expansion towards southern Germany, switzerland and south tyrol was progressed and, as a result, our expertise in cross-border business was further strengthened and expanded.

Independent and autonomous financial partner in four countriesthe relationship with our corporate clients, the understanding of their business models and prompt decisions were key. as a universal bank, BtV supports its small-to-medium sized corporate customers in all the financial businesses relevant to them in the strongest economic area of europe. From Innsbruck to Bregenz, Zurich, stuttgart, Munich, Vienna and to south tyrol, BtV uses a wide network of partners - accountants, local business promotion agencies, national funding agencies in the field of investment

and foreign trade, chambers of commerce and correspondent banks. BtV advisors and experts also make their sector-specific know-how available to corporate customers for

consultancy services such as market analyses, market building and expansion, as well as for the professional support of businesses for urgent funding or setting up cooperations. as the tyrol and Vorarlberg representative for the German Chamber of Commerce in austria (DHK) and the switzerland-austria-Liechtenstein Chamber of Commerce (HKsÖL), international networks can be utilised in the interests of BtV clients. Highly qualified and experienced staffBtV not only invests in the specialised further education of experts, but also in the sector-specific and regional training programmes for its corporate customer advisors. through the continuous further training of BtV staff it is possible for them to recog-nise current developments and opportunities at an early stage and to provide active input. this turns the contact people at BtV into genuine ‚sparring partners‘ for operative and strategic decisions. In addition to advising on typical finance and invest-

ment instruments, we are on hand with help and advice to answer any questions whatsoever regard-ing possibilities for enterprise investment, foreign trade deals, company succession planning, com-pany pension scheme, cross-border operations, tailored structuring of financing and investment instruments, interest and currency hedging as well as cash management and leasing arrangements. thanks to the cooperation with large national and international companies as well as with institu-tional market participants, new services can be continuously developed and implemented. Cross-border payment transactionsWith BtV, Vier Länder-Cash offers BtV cross-border payment transactions platform. BtV clients can make transactions with this software from their accounts in austria, Germany, switzerland and Italy from a single user interface. one single contact facilitates the management of all accounts in four countries. With BtV Four Countries Cash, the cash management system is not only cheaper but also quicker and more efficient.

the standardisation in payment transactions through sepa and the implementation linked to it preoccupies many corporate clients in particular with an automated debit management as well as direct debits. BtV supports their clients actively in this crucial phase so that they are prepared for the future. In 2013, numerous client appointments between payment transaction experts with clients at their premises in order to actively be able to react to the specific client requirements and their specific situation. the result can be seen: at the end of 2013, more than 80 per cent of clients are already using sepa transfers. Furthermore, the majority of direct debit users use the sepa direct debit transaction or are in the final project phase in this respect.

Corporate clients

the professional management of small to medium-sized, export-oriented and owner-run companies is at the heart of BtV VIer LÄnDer BanK.

“By the end of 2013, more than 80 per cent of BtV clients are already using sepa transfers.”

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BtV‘s support for private enterpriseFor many years, BtV VIer LÄnDer BanK has been offering small to medium-sized companies in particular the best possible support and active guidance when applying for enterprise investment. Government, ‚Land‘ and other institutions (austria Wirtschaftsservice GmbH, Österreichische Hotel-treuhand, erp-Fonds etc.) provide funds in austria under certain conditions – in the form of (interest-) subsidies amongst other things.

In Germany, the funding occurs through funding agencies mainly through the awarding of low-cost fixed-interest loans. BTV is accredited with the awarding of these funding loans both by the government funding agency (KfW) as well as each of the federal Länder, in which BtV operates (Lfa Förderbank Bayern und L-Bank) and is happy to sponsor funding projects in Germany. BtV export solutionsFor decades, the BtV VIer LÄnDer BanK has placed special value on service and support to export-oriented small to medium-sized countries. the broad performance spectrum and the international network in correspondent banks in international trade are continually adjusted by BtV employees in line with the needs of their corporate clients. even in the past business year, the new business in export financing and international trade hedging developed very well.

through the support of many companies, with a lively foreign trade, BtV staff are thoroughly familiar with the requirements of a wide range of industries and markets. this is also the reason why the BtV VIer LÄnDer BanK has the largest market share in export financing to medium-sized busi-nesses in tyrol and Vorarlberg.*

the extension of networks to international bank-ing partners was also a central concern of the BtV Institutional Clients and Banks division in 2013. In the same vein, the business area once again invited bank partners to a networking and specialist event in Vienna and for the first time also in Switzerland. BtV maintains contacts with over 900 bank part-ners across the globe. BtV clients therefore have the possibility of ben-efiting from financial services from many markets – whether in payment transactions, financing or interest and currency hedging. our contacts and networks with foreign partner banks are also help-ful for clients who are expanding into new market areas and are wanting to benefit from BTV‘s experi-ence and know-how.

Within the framework of the overall management of the bank, the business area, Institutional Clients and Banks, is primarily responsible for the optional liquidity management. Due to the demanding market environment, intensive contacts with our monetary trading part-ners are the basis for sound liquidity management. the management of Institutional Clients and Banks thereby underpins the activities of the business area.

In the third quarter, the conceptual preparatory work for the merger of Money Market trading, the Management of Institutional Clients and the Management of Banks began and was also for-mally implemented on 1 January 2014. the aim of the new orientation is to utilise synergies and to continue to accelerate the sales orientation. also in 2013, we managed to further increase the active visits to clients and money market trading partners and therefore raise the number of bank partners and clients. With this sales-oriented strategy, the business area provides the BtV client and internal business with even more flexibility.

In line with the market area of BtV in four countries – austria, Germany, switzerland and Italy – the focus of bank support lies in these markets. Furthermore, BtV maintains relationships to banking partners in each of all the regions which are or can be significant for clients of BtV.

Institutional clients and banks

a strong network of national and international bank partners creates a solid basis for the client business.

Great flexibility due to a strong network of partners.”


BtV has been present in Vienna since 1989. It man-ages a location for private and corporate clients at the heart of the federal capital. Its first-class advice and true client proximity are what differentiate BtV Vienna from its competitors. the personal commit-ment and the specialist competence of the em-ployees are impressive – customers benefit from BtV‘s independence, rapid decisions and tailored solutions. BtV staff orient themselves to the vari-ous phases of the client‘s life; the service packages grow to meet their requirements.

Local austrian private bankBtV operates the traditional private bank business in Vienna: they are distinguished by great commit-ment and a service culture. BtV‘s independence leads to solutions where the focus is solely on the client‘s requirements. Innovation, discretion and continuity are top priority. Comprehensive knowl-edge of client requirements are crucial for the BtV investment recommendations: Dimensions and objectives are a matter of priority in our dealings with client monies. an independent selection of products and sound, individual advice feature in every profile of BTV on the Vienna market.

Corporate client competenceBtV has over 109 years of experience and tradition in the corporate client business as a commercial bank. In Vienna, BtV offers the entire service bun-dle of the key market, where here too the focus is on advising and supporting medium-sized com-panies. In addition to the traditional medium-sized and large company business, in Vienna BtV has specialised in the financing of property and com-pany purchases and sales, as well as the financing of aircraft and impresses with its expert know-how. together with the BtV advisors, the experts from BtV Leasing offer one-stop solutions for the Vienna market. From there or directly at the client‘s prem-ises, BTV employees will liaise with the client to find the optimum solutions for all issues concerning corporate client business.

BtV has been present in the banking country of switzerland since 2004 with a full bank licence. employees who act in an entrepreneurial way with four countries‘ expertise – over and above the swiss Banking Business they are also familiar with those in austria, Germany and Italy – enthuse their clients. Integrated, solutions which are partially cross-border offer the clients of BtV in switzerland added value which is crucial for the success of innovative and future-oriented business activities.

Comprehensive offerIn switzerland, BtV concentrates on the corpo-rate client and actively managed private client segment. experienced banking specialists from switzerland, Germany and austria especially advise owner-managed, export and growth-oriented companies and high net worth private clients. this combination ensures a cross-border transfer of expertise and philosophy which contributes to innovative financial solutions which are perfectly tailored to clients‘ needs.

Optimum finance solutionsthe performance spectrum of BtV staad for corporate clients is coordinated in a very targeted way to the requirements of successful small to medium-sized companies. It comprises solutions for the operational settlement on switzerland, austria and Germany as well as investment, growth and export funding. the active management of available liquidity profits, very flexible, four-country compatible payment transfer instruments and the active support of company successions round off the BtV corporate client offering. a team of expe-rienced securities and asset management experts advise BtV‘s private clients in switzerland and also outside the normal bank opening hours where BtV customers request it. In so doing a great deal of importance is attached to a specific, discreet and active management which is adjusted to the invest-ment profile of the client.

Comprehensive export assistanceIn representing the Chamber of Commerce for switzerland, austria and Liechtenstein, BtV also supports companies in international trade with a broad service offering of network partners who are specialised in cross-border solutions.

switzerlandBranch: • Staad am Bodensee

ViennaBranch: • Albertinaplatz

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a high degree of expertise and short distances – this is how BtV convinces its Italian customers too. Customer service takes place from the stadtforum in Innsbruck and from BtV Lienz.

service at the highest levelthe focus on client service lies in the high-quality investment consultancy and asset management. With their special know-how and experience, BtV investment experts are in a position to develop specially tailored solutions for the respective re-quirements and objectives of the client.

Diversification through different legal systems In the past few years, the lowest interest level led to an increased need for the distribution of assets. In addition to the diversification in various asset classes, BtV clients increasingly also rely on country distribution due to the economic and financial challenges of individual countries. they thereby use the chance to divide their assets up amongst several countries - each having a robust legal system.

top consultancy in your mother tongue a special advantage of BtV in client support is the fact that their investment experts are multilingual. this is especially welcomed and valued by the Ital-ian clients – in conjunction with the excellent advi-sory competence and flexibility of BTV advisors.

BtV was successfully launched onto the market in Bavaria and Baden-Württemberg in 2006. BtV now has five sites with Augsburg, Memmingen, Munich, ravensburg/Weingarten and stuttgart.

success factors employees and mobilityIt is predominantly the employees who distinguish BtV from its competitors. BtV employees possess special know-how and understanding of business models because they maintain personal relationships with their clients and undertake ongoing training. they ensure speedy transactions and quickly make decisions on the spot. they thus combine their expert knowledge with the greatest service quality. their interest is focused on client needs. this is also apparent from the BtV philosophy which is lived out in the concept of mobile sales: the branch network is concentrated on selected conurbations in locations

with good transport links. BtV advisors visit clients at their premises.

Client-oriented solutionsBtV has 109 years of experience as an independent, holistically thinking and

acting financial partner. Its position with medium-sized, entrepreneur-led and growth-oriented compa-nies is especially strong. As a reliable financial partner, BtV stands for client-oriented solutions. It also offers leasing via BtV Leasing Deutschland GmbH.

successful investment in focusIn the private client business, BtV also offers ser-vice bundles for exacting requirements. thanks to tailored investment strategies, demanding custom-ers are very well cared for. the high level of exper-tise of BtV‘s asset management is proven not only by robust fund performance in accordance with the creed of ‚investing, not speculating‘ but also by numerous international awards as well.*

southern Germany Branches: • Augsburg • Ravensburg/Weingarten • Memmingen • Stuttgart • Munich

northern ItalyHeadquarters: • Innsbruck (BTV Stadtforum) • Lienz

“Four countries, one bank. It is invaluable to BtV clients, especially in payment transactions.”

* awards and successes in the past do not guarantee future success or continued growth. More information at: www.btv.at/auszeichnungen. |19 18 BtV BusIness report 2013

BtV Leasing GmbH – a fully owned subsidiary of the Bank für tirol und Vorarlberg aG – is headquar-tered in Innsbruck. since it was founded in 1988, it has been offering its clients individual support and assisting them with tailored solutions. BtV Leasing has greatly expanded in past years. This is reflected in the increase in the number of customers and the total volume of business.

Increasing financial cushionFree liquidity is a valuable asset in any company. using these for the pure ownership of a commodity binds up liquidity in the company assets. Leasing of investment goods increases the financial scope through intelligent use of the security inherent to the leased item. Con-

sequently, it broadens the scope for investment planning. Leasing facilitates Investments which preserve equity as it does not increase the balance sheet total.

BtV Leasing features a high level of specialist know-how in the field of investment financing and in addition to the standardised leasing models, it also offers flex-ible and individual solutions. Models such as capacity leasing or shift-use leasing enable financing variants which are agreed with the particular customer. the optimum leasing financing depends on several factors, such as the use of the leased object, the replacement cycle, as well as the additional side benefits in taxation and balance sheet. the BtV Leasing experts help you to make the right decisions in all matters.

Crossing bordersthe BtV Leasing advisors are acquainted with the particularities of the respective markets. the product range extends from machines, produc-tion plants and cable cars via special solutions in the aviation leasing field to commercial property. Because of its competence in four countries, inter-national solutions from a single source and with a single contact partner are possible.

subsidiaries in switzerland and southern GermanyBTV has fulfilled the principle of regional roots - closeness to the market and identification with the region - by founding the two 100% affiliates BTV Leasing Schweiz AG (2003) with registered office in staad and BtV Leasing Deutschland GmbH (2006) with registered office in Augsburg. In the Tyrol office, in Staad, Winterthur, Ravensburg, Munich, augsburg, stuttgart and Vienna BtV Leasing staff are now available to provide customers with their personal dedication and specialist competence.

a year of success in 2013Due to holding firm to strategic guidelines, it was possible to further extend the customer base – with habitually low risk costs. through consistent market analysis, the new business volumes were able to be expanded significantly. The company continued to expand in the attractive markets of Germany and switzerland. BtV Leasing has been represented in Germany since 2012 in all principle markets there.

using synergiesa further success factor of BtV Leasing consists of the cooperation with the BtV VIer LÄnDer BanK. the mutual support, especially in sales, results in lucrative business connections and comprehensive service bundles, which represent clear added value – both for the clients and also for BtV and BtV Leasing itself.

BtV Leasing

BtV Leasing offers tailored solutions – thanks to the four-country competence and more than 25 years of experience.

“BtV Leasing also increased its busi-ness with new customers in 2013.”

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education and further training are of great impor-tance to BtV – regardless of whether this involves new or long-serving employees. Because of this, BtV offers a large number of workshops, seminars and training sessions to aid employees in their per-sonal and professional development to help them to be successful.

the new upgrade to the Investment academyIn 2013, BtV invested in the further development of its Investment academy. For investment ad-visers, a new training format was designed and implemented for the first time: the advanced level of the Investment academy. specialist knowledge of the investment business, generation planning, tax, legal matters – each from Four Countries‘ perspective – make up the key themed blocks. the advanced level is always completed with a certifica-tion which serves ‚graduates‘ as proof of achieve-ment and motivation.

Consulting for Co-advisers of corporate clientsas a bank with an entrepreneurial slant, BtV sets great store by investing in the consulting train-ing of their advisers and co-advisers for corporate clients. In 2013, BtV placed increased emphasis on further training of co-advisers in particular. In this way, they not only ensure the best possible prepa-ration for and follow-up on client appointments, process applications independently and secure the high application quality that way - they also concentrate on possible cross-selling possibilities, undertake the daily business in a profit and risk-optimised way and ask the right questions in the sense of the best possible basis of information.

Consulting development: excellent in corporate client businessthe key aim of the training course programme is to understand the client‘s business model quickly and comprehensively, to weigh up opportunities and risks in the conversation with the client and process them with precision in the decision-making pro-cess. BtV advisers think of themselves as sparring partners, who work out the best solutions for the client and BtV and convince through entrepreneur-ial thinking. In training its staff within its corporate client business, BtV is increasingly emphasising its excellent consulting expertise.

promoting talentthe talent Year 2013 comes with the slogan ‚Fit4BtV‘. BtV‘s training and development programme focussed on important communication capabilities: How do I communicate clear expectations and goals? How do I successfully bring conversations to an end? How do I communicate controversial decisions? and how do I motivate my staff? In addition the chosen ‚BtV talents‘ had the possibility to get to know the swiss market better, to further develop their overall under-standing of the Bank as well as to be present at strate-gically significant appointments, for instance, within the context of the initial meetings of the management team regarding the BtV brand.

staff surveythe desire for further development spurs on BtV. this not only applies to business relationships but also to the relationship with your own staff. It is particu-larly important to the BtV Hr management team to get a complete, realistic picture about the perception of BtV as an employer in order to be able to take the right steps for further development. BtV commissioned an independ-ent, renowned institute to gather, within the context of an online staff survey, information about its attractiveness as an employer against points such as credibility, respect, conviction, team spirit and fairness and to compare it with other companies. the enjoyment in their work and working with line managers and colleagues was also surveyed. of course, the survey was carried out anonymously the results are to be presented in 2014 and serve as a significant basis for staff strategy for the coming years.

trainer Day 2013 – Life stories the trainer Day 2013 took the BtV trainers to the care home st. Johann. the residents reported about their life, the trainers documented this in words and pictures. an active and moving day - for trainers and residents equally. the BtV staff presented their social skills and creative results as part of an exhibition.

BtV employees

the success of a service provider depends to a considerable extent on the performances of its employees. BtV therefore consistently invests in its employees.

“We are employing entrepreneurial employees.”


BtV VIer LÄnDer BanK has alpine origins. It offers customers from tyrol, Vorarlberg, Vienna, switzerland, southern Germany and northern Italy high-quality services. In doing so, we create value and connect people. BtV understands its clients because

they cultivate close relationships and speak the same language - a very entrepreneurial and open language. the political and economic independence gives it the freedom to go its own

way. the inner drive to continually improve ultimately leads to success.

employees as a differentiating characteristicWith a project team made up of BtV employees, the core of the BtV brand was derived from historical and current top achievements as well as additional ele-ments of the new brand strategy. the decisive criteri-on of success for the implementation however remains each individual employee of BtV. each perception which is made by clients, partners or other persons at one of several hundred brand contact points to BtV can be influenced to a great extent by the member of staff. It is our goal to exceed the expectations at each of these contact points and consequently enthuse peo-ple. this strengthens the BtV brand.

our brand is an expression of our willBtV has the goal of becoming the best connected entrepreneurial bank in the most attractive economic area in Europe. We focus on a very clearly defined area. the most important principles in order to achieve this goal? acting in an entrepreneurial way, getting connected in a systematic way, transferring performance benefits, living an identity, continually exceeding expectations, showing appreciation of your colleagues and making clients fans. For everyday life this all means that each employee contributes to the success of the BtV brand due to a few simple rules.

networking is the greatest leverBtV employees guide their customers through the cross-border market of BtV to potential partners and the best investment opportunities. a person who wants to be a good networker for his cus-tomers, thinks things through to the end and acts fast. Being fully part of the BtV network delivers a knowledge edge. In turn, this implies a competitive advantage - and this strengthens BTV‘s profitability in a sustainable way. BtV‘s seven key values - entre-preneurial, alpine origin, connecting, value-based, committed to the customer, individual and with a will to win - here too form the credibility frame-work for how employees behave.

enthuse – set an example – inspireBtV‘s managers keep their team together, bolster them and lead them to top performance. each em-ployee knows what is expected. a prerequisite for this is an open, clear form of communication.

only a person who enjoys performing well can demand this as well. the inner drive to constantly improve oneself and to work out new solutions with a lot of passion and courage is fundamental. the recognition of the person within the employee and their potential creates a basis for working to-gether which is borne from appreciation and feel-ing connected. this is the ideal breeding ground for profound, successful work within BtV.

Managers know that BtV‘s success is the result of our joint-performance and show appreciation towards their team members as a result. they put everything into motivating them in the spirit of col-lective top performance.

the BtV brand

no strong brand without top performance.

“It is our aim to become the best connected entrepreneurial bank in the most attractive economic area of europe.”

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Management report

Business trendsCompliance and money launderingCharacteristics of the internal control and risk management system shares and shareholder structureoutlook


economic environmentDuring the course of the past year, a moderate path to recovery for the global economy presented itself despite obstacles. the central banks had the biggest influence on the economic development in 2013, maintaining their unconventional measures as well as their low interest rate policy. the extremely expansive monetary policy of the eCB as well as its statement about doing everything possible to preserve the euro, supported the weak upturn of the last six months in the entire eurozone when viewed as a whole. the recession, which had peaked at the turn of the year 2012/2013, was overcome towards the end of the previous year. In 2013, in the BtV markets of austria, Germany and switzerland, economic performance also grew despite difficult conditions – these countries are therefore the engine of the eurozone. robust export business propped up the economies in these countries.

In the us, the economy presented itself as robust de-spite negatively influencing fiscal factors (fiscal cliff and government shutdown). In many emerging countries, economic growth slowed down significantly as these countries suffered from extreme capital outflows and weakening of currencies in 2013.

Interest ratesthe european Central Bank reduced its base rate twice in 2013 – for the first time in May, after the economic indicators in the eurozone did not point to a recovery. although the economic data improved afterwards, the eCB decided neverthe-less on a further reduction to the base rate to the historic low of 0.25%. A reduced rate of inflation is seen as the main reason for this decision. the us Central Bank ‚the Fed‘, whose base rate had already been at the level of 0.25% since 2008, kept the markets at bay in 2013 with its tapering project. In spring, the american Central bank announced for the first time that they would reduce the monthly bond purchases provided the us economy contin-ued to recover. During the course of the year, this measure kept being pushed further back however. ultimately, due to the positive economic develop-ment, the Fed decided in December to reduce the purchasing of securities from January 2014.

On the fixed interest securities market, the Fed‘s announcement to gradually reduce the quantita-tive easing programme increased the yields from 10-year us government bonds up to a level of 3% – a level which was last achieved in the summer of 2011. the yields from 10-year German federal gilts also increased during the course of the year and rose by 45 base points to 1.93%. In addition, in the eurozone due to the assurance from the eCB to do everything to preserve the euro, a convergence of yields from government bonds could be detected.

Currency marketsThe exchange rate between euro and US dollar fluctu-ated in 2013 within a relatively small range of 10 cents between eur/usD 1.28 and 1.38. By the end of the year, the euro recorded close to the annual high at eur/usD 1.38 meaning that it was about 5% higher than at the start of the year. the exchange rates were again shaped, as in the past few years, by the euro debt crisis and the central bank policies of the european Central Bank and the Fed.

the eur/CHF rate of exchange continued between the poles of the minimum rate of the snB, sound swiss economic data as well as decreasing uncer-tainty in the eurozone. By the end of the year, the euro was listed at 1.2276 to the swiss franc and therefore about roughly 2% higher than at the start of the year. the Japanese Yen, by contrast, further weakened against the euro and lost around 27% during the course of the year (closing rate: 144.72).

equity marketsthe equity markets in the developed countries performed in a very pleasing way in 2013. the stock exchanges were characterised, on the one hand, by the improving economic indicators and, on the other hand, by the uncertainty of investors as to when the Fed will scale down its monthly bond purchasing programme. By mid May, an exchange rate rally with a new all-time high was observed in the most important share indexes such as the s&p 500, the Dow Jones and the Dax. after the Fed however announced in June 2013 that it wanted to reduce its quantitative easing programme,

Management report and notes on BtV Group business trends in 2013

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provided the economy continued to brighten and the unemployment rate fell, there was a brief fall in the equity markets. In the last 6 months of 2013, optimism prevailed on the stock exchanges in developed countries, however, brought on by the continuing economic recovery, the robust demand from companies and consumers as well as the resultant prospect for increased company profits.

Almost all major financial centres showed a positive performance in the double-figure range. The Euro stoxx 50 gained 18%, the swiss sMI 20%, the ameri-can Dow Jones 27% and the Japanese nikkei even 57%. only the Vienna share index atX lagged behind after a strong previous year of +6%.

Business trends

IFrs Group accountsthe BtV Group accounts have been drawn up according to IFrs regulations as well as the inter-pretations by the International Financial reporting Interpretations Committee (IFrIC) as exempting consolidated financial statements as defined by section 59a of the austrian Banking act (BWG) in conjunction with section 245a of the austrian Com-mercial Code (UGB). When preparing these finan-cial statements, all standards which were required for the financial years were applied. The notes starting on page 48 provide an overview of the standards as well as the accounting principles. In 2013 diverse new and modified standards applied (see pages 54/55) whereby the retrospective ap-plication of IAS 19 for the financial years 2012 and 2013 as well as the prospective application of IFrs 13 brought about a considerable impact.

Detailed explanations about risk management as well as descriptions of the relevant risks and uncer-tainties to which the company is exposed can be found in the risk report starting on page 82.

analysis of business performance the business activity of the BtV Group is analysed below having taken into account the financial and non-financial performance indicators which are most important for business activity:

Profit trendthe conservative, value-oriented business policy of Bank für tirol und Vorarlberg aG paid dividend again in 2013. Also in difficult times, BTV operates with its clear values successfully, reliably and with a long-term perspective, faithfully in line with its slogan ‚investing, not speculating‘ - as a visible result BtV counts among the safest banks in austria. the client is at the centre of the activity once again reflected in the operational client business - the basis for the excellent annual result. With an annual profit before tax of €82.1 mil-lion, the previous year‘s result was exceeded by +17.1%, while the overall result of the austrian banking market was more than halved in the same period. In particular, the small to medium-sized corporate client business in western austria, Vienna, southern Germany, eastern switzerland and south tyrol as well as the multi-award-winning asset management were the driving force behind the best financial year in the 109-year history of BtV.

the main components of the results of 2013 can be seen as follows: the profit from interest rates increased due to the operational strength within the client business by 6.9% to €175.7 million. the loss provisions in the credit business increased in particular due to the allocated portfolio value corrections by 17.4% to €46.9 million, the net commission income increased significantly by +7.0%. The trading income contributed €1.0 million to the results. the administrative costs were €96.0 million meaning the cost-income ratio improved to 43.3%. Other operating profits amounted to -€2.3 million and the total profit arising from financial assets was €5.3 million.

BreaKDoWn oF CHanGes In proFIt In 2013 in €‘000

net interest income +11,416provision for risks –6,942net commission income +2,969trading income –2,211operating expenses –3,190Other operating profit +151Income from financial assets +9,828Annual net profit before tax +12,021Group net profit for the year +3,685


CHanGe In operatInG InCoMe 2009-2013

net interest income net commission income trading income

164.6

42.5

0.6

146.6

43.3

2.8

131.4

40.3

4.5

164.3

42.3

3.2

net interest incomeThe driver for the significant increase in the annual result for 2013 was interest income. the robust cli-ent business and the improved margin were able to overcompensate for the lower coupons from fixed interest securities as well as the declining results from dividends and investments. net interest income for the period increased overall by €11.4 million or +6.9% to €175.7 million. Interest income also includes in-come from businesses valued at equity whose results showed a fall of €1.0 million to €24.5 million.

risk provisionsLoss provisions for credit business represent the bal-ance of inflows and releases of loss provisions, includ-ing direct write-downs on receivables. to these are added proceeds from receivables which had already been written down. Loss provision requirements for the credit business rose during 2013 by € 6.9 million or 17.4%, to € 46.9 million. this includes the premium for loan default insurance for BtV, as well as the newly es-tablished portfolio value corrections. By segments, the loss provisions were divided into the corporate client business with €41.2 million and the private client busi-ness with €5.8 million and €0.1 million are allocated to institutional clients and banks.

0.0

100.0

200.0

150.0

amounts in € million

50.0

20132009 2010 2011 2012

175.7

45.3

1.0

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CHanGe In net CoMMIssIon InCoMe 2009-2013

securities payment transactions Currency, foreign exchange and precious metal businesses Credit and other business

18.6

14.1

3.56.3

19.7

13.5

3.26.9

17.4

13.4

6.5

3.0

18.5

12.6

4.3

6.9

net commission incomethe overall net commission income saw a total increase of €3.0 million or +7.0%, to €45.3 million. the driver for growth herein was the securities business with an increase of €3.1 million or +16.7% to €21.6 million. payment transactions represented the second largest commission item. It grew by €0.5 million or +4.0% to

€13.1 million. other services business also managed to increase (€0.7 million). Currency, foreign exchange and precious metal businesses (€1.2 million to €3.1 million) as well as the credit business (-€0.2 mil-lion to €5.7 million) developed negatively.

trading incometrading results were down on the previous year. this went down by €2.2 million to €1.0 million. The main reasons for this were profits reduced by €1.3 million from hedging businesses and lower gains from the securities business (– € 0.7 million). the result from currency and foreign exchange business amounted to €0.9 million (– €0.2 million).

0.0

30.0

50.0

40.0


10.0

20.0

2009 2010 2011 2012 2013

21.6

13.13.1

7.5


CHanGe In operatInG eXpenses 2009-2013

staff costs Material costs Depreciation

61.0

26.6

7.2

57.8

26.4

6.7

60.3

26.4

7.9

59.5

26.7

6.6

0.0

40.0

100.0

80.0


20.0

60.0

2009 2010 2011 2012 2013

operating expensesoperating expenses (personnel, expenditure on material, amortisation and depreciation) increased by €3.2 million or +3.4% in the reporting period to €96.0 million.

a relevant part of this is staff costs which increased moderately by 1.5% to €60.4 million. Increasing costs compared to the previous year were especially due to increased wages and salaries by €0.4 million which grew due to the results of the collective bargaining negotiations in 2013 (collective agreement salaries on average up 2.55%). on the other hand, the average staff level regarding employees in the reporting year fell by 13 to 766 personnel years.

For the social capital parameters, there was a change in the calculated interest rate compared to last year. Due to the decreasing interest rates on the capital market, this was reduced by 0.375% points to 3.5%. Within the calculation parameters collective bargain-ing and career, there was no change - they continue to amount to 2.75% and 0.5% in the reporting year.

For material costs of the BtV Group, especially the It centres were the cost drivers compared to the previous years. Materials costs increased overall by €2.0 million or 7.6% versus the previous year. Depre-ciation increased by 3.9% to €6.9 million. Compared with 31 December 2012, the number of BtV branches remained constant at 37.

Given that no independent and planned research was carried out, in order to uncover new scientific or tech-nical knowledge, nor any development in preparation for commercial production, as in the previous year there were therefore no research and development activities carried out in the meaning of section 243 (3) line 3 of the austrian Commercial Code (uGB).

60.4

28.8

6.8

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Other operating profitThe result for other operating profit improved by €0.2 million to - €2.3 million. at this position, the levy in accordance with the Investment stability Law is also accounted for - this amounted to €3.9 million in 2013 unchanged versus the previous year.

Income from financial assetsIn 2013, the income from financial assets was up €9.8 million on the previous year. the increase is due, on the one hand, to the special effects of the previ-ous year: In 2012, sales losses due to risk reduction measures in the securities portfolio depressed the result, in the previous year sales profits from stakes in companies occurred. on the other hand, the credit spreads have also relaxed slightly. In total, the result from financial assets were up €5.3 million, compared with -€4.5 million the previous year.

Taxes on earnings and profitBesides the ongoing effect of corporation tax, the amounts recorded at ‚Taxes on income and profit‘ relate primarily to the latent taxes to be paid on ac-cruals and prepayment adjustments, in accordance with IFrs. tax expenses for 2013 for the BtV Group are calculated at €8.3 million or 88.6% higher at €17.7 million. the effective tax rate was thus 21.6%.

Annual pre-tax profit and group net profit for the yearto sum up, BtV‘s robust operating business as well as the good result from financial assets therefore resulted in a pre-tax surplus of €12 million or 17.1% higher at €82.1 million. after tax, group income for the year was €64.4 million. thus, BtV achieved the best results in its existence.

CHanGe In annuaL net proFIts pre-taX 2009-2013

Annual net profits pre-tax

64.761.8

51.3

70.1

0.0

50.0


25.0

75.0

2009 2010 2011 2012 2013

82.1


earnings per shareThe significantly higher group net profit for the year in particular resulted in a increased profit per share of 5.7%. this increased from €2.44 in the previous year to €2.58.

For the financial year 2013, the Board of Directors will propose an unchanged dividend (from previ-ous year) of €0.30 per share at the annual general meeting.

CHanGe In earnInGs per sHare 2009 - 2013

earnings per share

2.161.981.92

2.44

0.0

1.50

2.50

Values in €

0.50

2013

2.00

1.00

2009 2010 2011 2012

2.58

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CHanGe In BaLanCe sHeet assets 2009-2013

Loans KI Loans to customers Financial assets including holdings other assets

6,214

2,472

282

247

5,940

2,490

235

221

291

5,559

2,319296

6,387

2,456

467

186

Balance sheet performanceIn its decisions, BtV always remains true to its motto of ‚investing not speculating‘. since it was founded in 1904, BtV has always developed suc-cessfully even in times of crisis with this philosophy – both the Bank and its clients benefit from this. the conservative principles with which BtV has proven to be a safe haven for its clients become visible in the further increased customer deposits.

CHanGes to sIGnIFICant BaLanCe sHeet IteMs In 2013

in € million

total assets +92Loans to clients +17Loans to credit institutions –145Financial assets including holdings +158Liabilities to credit institutions –60primary investments including supplementary capital +133equity +68

Change in assets total assets at 31 December 2013 were €9,589 million, up €92 million or 1.0% above the comparative figure for year end 2012.

Cash reserves increased by €120 million in particular due to higher credit with central banks to €230 million.

Loans to credit institutions in contrast fell by €145 mil-lion to €322 million compared to the previous year. BtV held back from the inter-bank market during the year.

Despite the weak economic development during 2013 and the resulting restrained demand for credit, the ‚loans to clients‘ item increased by €17 million to €6,405 million. Within the segments, the lending volume to corporate customers increased by €133 mil-lion and by €15 million to institutional customers, while loans to private customers reduced by €131 mil-lion. split according to domestic and foreign, loans to domestic customers fell by €28 million to €4,306 mil-lion, while loans to foreign customers increased by €45 million to €2,099 million.

as far as loss provisions were concerned, the alloca-tions during 2013 markedly exceeded the write-downs and consumptions, in particular due to the alloca-tion of portfolio valuation adjustments. Loan-loss provisions increased overall by €13 million or 6.5% to €207 million. For risk management objectives, methods and declarations regarding existing default and market risks, please see the detailed risk report starting on page 82.

Financial assets and interests, including trading assets rose, compared to the previous year by €158 million to €2,614 million. the increase occurred in particular in fixed-interest securities. Regarding the reinvest-ment of expiring securities, fixed interest medium and longer term securities with excellent credit ratings were purchased, which may be used for tender and repo transactions. the book value of the at-equity val-ued interests as well as the available-for-sale holdings increased overall by €57 million to €532 million.

0.0


3,000

6,000

9,000

2009 2010 2011 2012 2013

6,405

2,614

322

248


Change in liabilities Primary funds formed the basis of the refinancing: In total, BtV‘s clients as at 31 December 2013 in-vested in primary funds to the tune of €6,716 million. the pleasing increase (of €133 million or +2.0% versus year end 2012) primarily resulted from securitised liabilities (€132 million), liabilities to customers (savings and account deposits) managed to make an overall gain of €32 million to €5.428 million. subordinated capital developed negatively (down €31 million) to € 408 million. the managed client deposits were at €11,546 million at the end of December 2013 – this constitutes an increase of

€177 million compared to year end 2012 or 1.6%. the loan deposit ratio of client loans by loan-loss provisions to primary funds was 92.3% so that, in accordance with strategy, the customer credit busi-ness is refinanced with primary funds. BTV‘s liquidity therefore stands on a very stable foundation. the liabilities to credit institutions reduced by €60 million or 3.3% to €1,753 million by annual comparison.

Balance sheet equity (including group annual profit) increased by 8.0% or €68 million to €913 million. This increase primarily resulted from the profit of the financial year 2013 (€64.4 million).

CHanGe In BaLanCe sHeet LIaBILItIes 2009-2013

Liabilities KI securities Clients securitised debt and subordinated capital equity and other assets Liabilities

5,373

1,255

1,601

986

4,881

1,287

1,795

924

1,424

4,984

1,275

782

5,395

1,188

1,812

1,101

0.0


3,500

7,000

10,500

2009 2010 2011 2012 2013

5,428

1,288

1,753

1,120

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Qualifying capital as per the Banking act (BWG)as at 31 December 2013, the credit institution group‘s qualifying net equity under the BWG (austria‘s Bank-ing act) was €964 million meaning that the statutory minimum requirement (€484 million) was exceeded by around twice as much. the attributable equity cap-

ital fell in 2013 overall by roughly €31 million, mainly due to a reduction in the portfolio in supplementary capital. risk-weighted assets (rWa) remained during the course of the year with a change down of 0.2% almost steady at €5,652 million.

on 31 December 2013, the core capital of the credit institution group as per BWG amounted to €867 mil-lion and therefore €61 million or 7.5% above that of the previous year. the core capital ratio calculated from this - in relation to the overall risk, 50% of the deductible items under section 23 para 13 BWG were deducted, the previous year‘s values have been ad-

justed - in the amount of 13.33% is 0.88 percentage points above the comparative figure for year end 2012 (12.45%). the equity ratio (also related to the total risk) amounted to 15.93%, significantly exceeding the legally required minimum value of 8%. at the end of 2013, the equity surplus amounted to €480 million.

CHanGe In CapItaL 2009 - 2013

Qualifying equity

853800

935995

0

1,000


333

667

2009 2010 2011 2012 2013

964

CHanGe In Core CapItaL ratIo 2009 - 2013

Core capital ratio

11.22%

8.89%7.89%

12.45%

0.00%

Values in %

3.50%

10.50%

14.00%

2009 2010 2011 2012 2013

7.00%

13.33%


Key indicatorsthe cost-income ratio for the reporting year was 43.3% (previous year: 44.2%), the risk/earnings ratio was 26.7% (previous year: 24.3%). the return on equity (roe) on the basis of the pre-tax annual net profit increased to 9.3% at the end of the year (previous year: 8.7%).

KeY InDICators in %

roe before tax 9.3%roe after tax 7.3%Cost/income ratio 43.3%risk/earnings ratio 26.7%Core capital ratio 13.33%equity ratio 15.93%

CHanGe In Cost/InCoMe ratIo 2009 - 2013

Cost/income ratio

45.6%47.2%

53.7%

44.2%

0.0%

Values in %

20.0%

40.0%

60.0%

2009 2010 2011 2012 2013

43.3%

Events after the financial statement date With the resolution of the voting trust agreement on 15 January 2014 (effective 1 January 2014), 15% of the voting rights in VoMonosi Beteiligungs aG flowed back to the BTV Group. Consequently, the company is included in the full scope of consolida-tion of the BtV Group in future. the resolution of the voting trust agreement is to be seen as an ele-ment in the implementation of the overall strategy. 36 % of the shares in VoMonosi Beteiligungs aG will continue to be held by third parties as before.

as already publicised in the interim report on 30 June 2013, BtV will establish a 24.99% holding interest in Moser Holding aG. By the time the approval to publish the group financial statements was given by the Board of Directors to the supervisory Board on 5 March 2014, the transaction had still not been put through. the board assumes that the purchase will take place in March 2014.

Otherwise between the end of the financial year and the creation and approval of the financial statement by the auditors, there were no signifi-cant events relating to the business.

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Complianceat the Bank für tirol und Vorarlberg aktiengesellschaft (BtV), employees undertake on joining to comply with the provisions of BtV‘s compliance code. these rules are based on the standard Compliance Code of the austrian banking industry, the regulations of the emittenten-Compliance-Verordnung [Issuers Com-pliance ordinance] (eCV 2007) and the Compliance regulations of the securities supervision act (WaG 2007). the objective of these regulations is not only the prevention of insider trading, market manipulation or avoidance of conflicts of interest, but the preven-tion or minimisation of all compliance-relevant risks, which could result from the non-compliance with laws, regulations, non-statutory recommendations or internal guidelines. Internal procedures and measures for compliance with these rules, which are regularly checked and documented, have been defined by com-pany compliance officers, with no infringements being ascertained during the reporting period. In 2013 over 100 employees, primarily in the sales department, re-ceived training in order to ensure full compliance with the regulations of the Compliance rules and the MiFID.

Money launderingBtV‘s goal is to prevent any form of money laun-dering or the financing of terrorism within its busi-ness activities. For this purpose, various procedures and systems are set up within BtV in order to uncover unusual transactions and business cases, and to pass these on the money laundering report-ing authority if money laundering is suspected. the daily embargo examination which is also sup-ported by the system, as well as the examination of existing and new business relationships with politically prominent persons (pep) were carried out according to the legal regulations. over 420 employees received training during the reporting period on the issues of money launder-ing and the financing of terrorism, with a focus on creating understanding of risky transactions and business cases, as well as the individual employee‘s responsibility for preventing money laundering and financing of terrorism.

Compliance and money laundering


as required by section 243a para 2 of the austrian Commercial Code (uGB), the most important characteristics of BtV‘s internal control and risk management system with regard to the account-ing process are cited below.

BtV‘s Board of Directors is responsible for the implementation and organisation of an internal control and risk management system correspond-ing to the requirements of the group, in relation to the accounting process. this report provides an overview of how the internal controls are regulated in relation to the accounting process.

the following explanations follow an opinion for the austrian Financial reporting and auditing Committee (aFraC) on drawing up the manage-ment report required by sections 243, 243a and 267 of the Commercial Code (uGB) of June 2009 and also the tasks of the audit Committee as laid down in section 63a of the Banking act (BWG). The description of the significant characteristics is structured pursuant to the framework concept of the Committee of sponsoring organisations of the treadway Commission (Coso).

accounting (bookkeeping and preparing of the accounts) and its associated processes, as well as the associated risk management, fall within the Finance and Controlling area (accounting and re-porting team and risk Controlling team). regular and legally prescribed checks are carried out by the Internal department.

the primary tasks of the internal control system and of the risk management system are to inspect all accounting-related processes and to identify, analyse and constantly monitor the risks affecting the correctness and reliability of the bookkeeping, and where necessary, to adopt measures to ensure that the company‘s goals can be achieved.

Control environmentIn addition to compliance with legal provisions in austria, Germany and switzerland, the principles of conduct defined by BTV are given priority. Emphasis is also placed on observing BtV‘s corporate governance principles and on the implementation of its standards.

For the overall control environment, descriptions of jobs with their associated competences and allocated areas of responsibility exist for the entire department, with corresponding training pyramids for the optimal further development of employee expertise. In this way, it is also possible for innova-tions to be included in the accounting process in a proper and timely fashion. the department employees have the necessary knowledge and experience at their disposal to work in accordance with their remits.In order to comply with the prescribed legal provi-sions and relevant accounting standards, within BtV, accounting processes (IFrs, uGB), in particular key processes, are supported by numerous guidelines, manuals, working aids and written instructions in the Finance and Controlling departments. these are regu-larly checked and updated where necessary.

risk assessmenta catalogue of risks has been developed cover-ing the most significant typical company business processes in accounting, with the identification of the most important risk areas. these are monitored with controls on an ongoing basis or reviewed and, where necessary, evaluated. Internal controls may provide an adequate degree of certainty of meet-ing these objectives, but no absolute guarantee. the possibility of mistakes when performing activi-ties, or errors when estimating or applying scope for discretion evidently exists.

reporting on the significant features of the internal control and risk management system with regard to the accounting process.

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Because of this, it is not possible to provide an un-limited guarantee that errors in the annual financial statements will be detected or prevented. In order to minimise the risk of a misjudgement, selective use is made of external experts and publicly acces-sible sources are taken into account.

Control measuresthese activities include systemic controls, which have been defined by BTV and the IT providers (SAP, GAD, Geos nostro, Finanz-Logistik aG, priBasys aG with the program Finnova), as well as manual controls such as plausibility checks, the four-eyes principle (partly with the involvement of the regional manager or the section manager) or job rotation within the division. as a supplementary safeguard of security within the systems, sensitive activities within BtV are protected through restrictive management of It authorisations. these comprehensive control measures are backed up by internal handbooks, working aids, checklists, process descriptions and job descriptions with their associated areas of responsibility. In addition reconciliations and validation checks on the data are carried out on a continuous basis between the accounting and reporting teams on the one hand, and the risk controlling team on the other. this guarantees the accuracy and compliance of the data used in the risk reports and legal publications.

Information and communicationtimely and comprehensive reports on the most significant accounting processes and group activities, are drawn up for the Board of Directors (in the form of monthly financial reports), for the Supervisory Board and audit Committee, as well as for the BtV shareholders (quarterly financial reporting) with explanations as needed.

supervisory measuresthe supervision of the accounting process was guaranteed on the one hand, by the functional internal control system which is regularly updated (IKs), and on the other, by the independent internal auditing department of BtV (which reports directly to BtV‘s Board of Directors).the head of department, as well as the responsible team leaders, carry out a supporting supervisory and oversight function for the accounting processes.additional supervisory measures to guarantee the reliability and correctness of the accounting process and its associated reporting are executed by the legally designated auditors of the group annual financial statements and the mandatorily appointed audit Committee.


the share capital of the Bank für tirol und Vorarlberg aktiengesellschaft (BtV) amounts to €50.0 million and is divided into 22.5 million no par value ordinary shares, and into 2.5 million no par value, non-voting preference shares, with a minimum dividend of 6% of the propor-tional amount of share capital, paid in arrears.

the shareholders oberbank aG, BKs Bank aG, Generali 3 Banken Holding aG and Wüstenrot W ohnungswirtschaft reg. Gen.m.b.H. form a syndicate, with the purpose of preserving the autonomy of BtV, it being in the interests of the syndicate partners for BTV to continue to develop as an earnings- and profit-oriented company. In order to realise this objective, the syndicate partners have agreed on joint exercise of their corporate rights associated with their sharehold-ings and of their pre-emptive rights.

shares and shareholder structure

BtV is autonomous and independent.

BtV sHareHoLDer struCture BY sIZe oF HoLDInG

*) shareholders who form part of the syndicate agreement.

37.53% CaBo Beteiligungsgesellschaft m.b.H., Vienna

13.59% BKs Bank aG, Klagenfurt *)

13.22% oberbank aG, Linz *)

19.42 % Widely spread shareholdings

13.60% Generali 3 Banken Holding aG, Vienna *)

2.28% Wüstenrot Wohnungswirtschaft reg. Gen.m.b.H., salzburg *)

0.36 % BtV private Foundation

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under the form of the BtV private Foundation BtV employees have a stake in the company. the Board of Directors, the Foundation‘s advisory Board and its auditors constitute the executive bodies of the BtV private Foundation. the exclusive purpose of BtV privatstiftung is to pass on, directly and in full, income from holdings in BtV or affiliated group companies. This provides a collective opportunity for active involvement by the staff of BtV both in shaping the company and in its success.

BtV is permitted to purchase its own shares for the purposes of securities trading, as well as for its own employees, managers, members of the Board of Directors as well as the supervisory Board by 16 november 2015, with the proviso that the trading portfolio of shares acquired for this purpose may not exceed 5% of the share capital at the end of any day. on the basis of these decisions, shares may only be purchased if the equivalent per share does not differ either positively or negatively by more than 20% from the average of the official BTV share price on the Vienna stock exchange during the three trading sessions preceding the purchase.


BtV shareholDer structure By VotInG rIGhts

41.70 % caBo Beteiligungsgesellschaft m.b.h., Vienna

15.10 % BKs Bank aG, Klagenfurt *)

2.53 % Wüstenrot Wohnungswirtschaft reg. Gen.m.b.h., salzburg *)


14.69 % oberbank aG, linz *)

15.12% Generali 3 Banken holding aG, Vienna *)



after around two years of recession in the euro-zone, a slight upturn provided better prospects in the past few months. the central banks supported the growth based on the continuing expected low rate of inflation. In particular in BTV‘s mar-kets which counted among the best developed economic areas in europe growth was supposed to remain robust as a result. The turmoils of the fi-nancial markets of many of the emerging countries nevertheless present a risk for the gradual econom-ic recovery in the euro area. Weaker exports could endanger the euro economy as well as a lack of domestic demand and delayed structural reforms in several of the member states of the currency un-ion. If the situation in the emerging markets were to grow into a prolonged crisis, this could cloud the situation for the euro zone as well. In this case it is expected that the eCB would act and instigate measures to stimulate the economy.

Low inflation continues to make for historically low interest rates in europe and the us. to some extent, the confidence of the financial markets has been restored and the risk of a renewed escalation of the debt crisis has reduced through this but has not however been averted. The possibility of deflation, i.e. a spiral of falling prices, in which consumers and companies in expectation of additional falls enter a buying and investment strike, is estimated as small within BtV‘s budget basis scenario.

this environment facilitates BtV to continue its successful growth strategy, whose cornerstones are the market development of the expansion markets of Vienna, Bavaria, Baden-Württemberg, eastern switzerland as well as south tyrol and Veneto (from Innsbruck). In tyrol and Vorarlberg, BtV is already the market leader in the main target groups. Here, this position must be consolidated and further market shares must be gained. In the client busi-ness area which is hugely important to BtV, the emphasis is on organic increases to client loans, primary funds and investment volumes. there will be no change to the strategically pursued principle of entirely refinancing customer loans by means of primary funds.

Due to the higher budgeted volumes, the interest balance as BtV‘s most important pillar of revenue is tending to continue to grow despite negative structural income. In the commission business, the focus is continuing the expansion of the securities business. the administration costs will increase moderately. The costs for the risk profiling are expected in comparison with 2013 to be slightly negative. In sum, these factors are supposed to lead, if the conditions described come to the fore in 2014, to the annual profit before tax to be at least at the same level as in the current reporting year.

Innsbruck, 5. March 2014

the Board of Directors

outlook

peter GauggBoard spokesperson

spokesperson for the Board of Directors with responsibility for corporate client business in Vorarlberg, Innsbruck, south tyrol and Vienna; Corporate and private customer business southern Germany; Corporate audit, Human resources, Marketing & Communi-cations divisions; Compliance and money laundering.

Mag. Matthias MoncherMember of the Board

Member of the Board of Directors with responsibility for risk, process, It and cost management; the departments for finance and controlling, legal matters and investments and group audit; Compliance and money laundering.

Gerhard BurtscherMember of the Board

Member of the Board, responsible for private client business in tyrol, Vorarlberg, Vienna and Italy; Corporate client business in tiroler oberland and unterland; Corporate and private customer business in switzerland; Institutional Clients and Banks, Corporate audit; Compliance and money laundering.

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Group accounts

Group accounts 2013Balance sheetCombined profit and loss accountstatement of change in equityCash flow statementBtV Group: notes 2013accounting and valuation principles

report from independent auditorsreport from the supervisory board

BtV BusIness report 2013 40 |41

44 | Balance sheet - assets

77 Balance sheet – assets

48 | accounting and valuation principles

56 | Cash reserves 1 56 | Loans to Credit Institutions 2 56 | Loans to clients 3 56 | Lifetime to Maturity Breakdown

Finance-Lease Loans3a

57 | risk provision 4 57 | trading assets 5 58 | Financial assets – at fair value

through profit or loss 6 58 | Financial assets – available

for sale 7 59 | Financial assets – held to

maturity 8 59 | Holdings in at-equity valued

companies 9

60 | Fixed asset overview 10

62 | Intangible fixed assets 10a

62 | Fixed assets 10b

62 | Fixed assets Held as Financial Investment 10c

62 | Life to Maturity Classification operating Lease Contracts 10d

63 | tax refunds 11

63 | Latent tax refunds 11a

63 | other assets 12

44 | Balance sheet - Liabilities

77 | Balance sheet – Liabilities

64 | Liabilities to Credit Institutions 13

64 | Liabilities to Customers 14

64 | securitised Liabilities 15

65 | trading liabilities 16

65 | reserves 17

66 | personnel provisions for performance after termination of the working relationship: performance-oriented plans17a

66 | other long-term personnel reserves 17b

67 | overview of long-term personnel reserves 17c

67 | actuarial assumptions 17d

67 | sensitivity analysis 17e

68 | Due date of benefits expected to be paid out 17f

68 | other reserves 17g

68 | tax due 18

68 | Deferred tax owed 18a

69 | other Liabilities 19

69 | tier 2 Capital 20

69 | share Capital 21

70 | Consolidated equity of the BtV CI-Group 21a

45 | Combined profit and loss account

130 | statements by the statutory representatives

131 | report from independent auditors

77 | Details of the profit and loss account and segment and risk reporting

71 | Interest income 22

72 | Loan loss provisions 23

72 | net commission income 24

72 | trading income 25

72 | operating expenses 26

73 | auditor expense 26a

73 | number of employees 26b

73 | other operating profit 27

73 | Income from financial assets – at fair value through profit or loss 28

74 | Income from financial assets – available for sale 29

74 | Income from financial assets – held to maturity 30

74 | taxes on earnings and profit 31

75 | taxes: reconciliation calculation 31a

75 | earnings per share (common and preference shares) 32

75 | application of profits 33

76 | segment reporting 34

82 | risk reporting 35

135 | BtV Group - a 5-year overview

Group final accounts as at 31 December 2013

Board of Directors/auditors/supervisory Board

BtV Group - a 5-year overview

137 | 3 Banken Group shareholder structure

138| overview of 3 Banken Group – Group information

3 Banken Group

Group final accounts 2013 under International Financial reporting standards (IFrs)

133 | report from the supervisory board

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77 | notes to the Balance sheet - other and supplementary notes

114 | other notes 36

115 | notes relating to offsetting of financial instruments 36a

115 | Comfort letters 37

116 | notes on transactions with closely related persons 38

116 | emoluments and loans to members of the Board of Directors and supervisory Board 38a

116 | Loans and liabilities to affiliated non-consolidated companies and stakeholdings 38b

117 | Loans and liabilities to associated companies and stakeholdings 38c

117 | shares in at-equity valued companies 38d

117 | the associated companies valued at continued purchasing costs 38e

118 | total volume of not yet unwound derivative financial products 39

121 | Fair Value Hierarchy of Financial Instruments 40

124 | Fair Value of financial instru-ments which are not valued at the fair market value 41

125 | Fair Value hierarchy of financial instruments which are not valued at the fair market value 42

126 | Life to maturity breakdown 43

127 | organs of BtV aG 44

128 | representation of share holdings 45

46 | statement of Changes to equity

47 | Cash flow statement 114 | Miscellaneous and supplementary notes to the Balance sheet - assets


assets in €‘000

31 December 2013

31 December 2012

Change absolute

Change in %

Cash reserve 1 [reference to notes] 229.545 109,068 +120,477 >+100.0%Loans to Credit Institutions 2 321,850 467,009 –145,159 –31.1%Loans to Customers 3 6,404,543 6,387,467 +17,076 0.3%risk provisions 4 –207,146 –194,492 –12,654 6.5%trading assets 5 27,208 35,326 –8,118 –23.0%Financial assets – at fair value through profit or loss 6 155,223 203,267 –48,044 –23.6%Financial assets – available for sale 7 1,251,189 1,111,313 +139,876 12.6%Financial assets – held to maturity 8 846,262 787,509 +58,753 7.5%shares in at-equity valued companies 9 333,672 318,589 +15,083 4.7%Intangible fixed assets 10a 51 34 +17 50.0%property, plant and equipment 10b 85,364 83,797 +1,567 1.9%Properties held as financial investments 10c 46,754 49,286 –2,532 –5.1%tax refunds 11 224 4,051 –3,827 –94.5%other assets 12 93,786 134,149 –40,363 –30.1%

total assets 9,588,525 9,496,373 +92,152 1.0%

Balance sheet at 31 December 2013

LIaBILItIes in €‘000

31 December 2013

31 December 2012

Change absolute

Change in %

Liabilities to Credit Institutions 13 1,752,704 1,812,496 –59,792 –3.3%Liabilities to customers 14 5,427,569 5,395,099 +32,470 0.6%securitised debt 15 880,491 748,545 +131,946 17.6%trading Liabilities 16 21,443 30,954 –9,511 –30.7%reserves 17 69,601 69,235 +366 0.5%tax debts 18 15,030 12,081 +2,949 24.4%other Liabilities 19 100,781 143,219 –42,438 –29.6%subordinated capital 20 407,841 439,220 –31,379 –7.1%equity 21 913,065 845,524 +67,541 8.0%

total liabilities 9,588,525 9,496,373 +92,152 1.0%

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proFIt anD Loss aCCount in €‘000

2013 2012* Change absolute

Change in %

Interest and similar income 241,811 237,580 4,231 1.8%Interest and similar expenses –90,626 –98,812 8,186 –8.3%Income from at-equity valued companies 24,524 25,525 –1,001 –3.9%net interest income 22 175,709 164,293 +11,416 6.9%

Loan loss provisions for credit transactions 23 –46,884 –39,942 –6,942 17.4%Commission income 51,254 50,953 +301 0.6%Commission expenses –5,975 –8,643 +2.668 –30.9%net commission income 24 45,279 42,310 +2,969 7.0%

trading income 25 1,001 3,212 –2,211 –68.8%operating expenses 26 –96,027 –92,837 –3,190 3.4%Other operating profit 27 –2,272 –2,423 +151 –6.2%Income from financial assets – at fair value through profit or loss 28

2,518 7,760 –5,242 –67.6%

Profit arising from financial assets – available for sale 29 2,815 –8,521 11,336 >+100.0%Profit arising from financial assets – held to maturity 30 –23 –3,757 3,734 –99.4%Annual net profit before tax 82,116 70,095 +12,021 17.1%

Taxes on earnings and profit 31 –17,748 –9,412 –8,336 +88.6%

Group net profit for the year 64,368 60,683 +3,685 6.1%of which equity proportion 64,368 60,683 +3,685 6.1%of which minority portion 0 0 0 0.0%

Combined profit and loss account as at 31 December 2013

aDDItIonaL oVeraLL proFIt in €‘000

2013 2012*

Group net profit for the year 64,368 60,683revaluation from performance-oriented pension plans –2,724 –3,103Changes in at-equity valued companies recognised directly in equity –2,787 –1,403Profits/losses with regard to deferred taxes, applied directly against equity 679 776Total headings which could subsequently not be allocated into profit or loss –4,832 –3,730

Unrealised profit/loss on assets retained for disposal (AfS reserve) 25,264 37,271Changes in at-equity valued companies recognised directly in equity –3,201 688Unrealised profits/losses from adjustments due to currency conversions –196 –122Profits/losses with regard to deferred taxes, applied directly against equity –6,159 –10,326Total of the items which can subsequently be allocated to profit or loss 15,708 27,511

sum other comprehensive income 10,876 23,781

Overall profit for the financial year 75,244 84,464of which equity proportion 75,244 84,464of which minority portion 0 0

* 2012 adjusted, see table ‚corrections Ias 19‘ on page 54.|45 44 BtV BusIness report 2013

stateMent oF CHanGe In eQuItY in €‘000

subscribed capital

reserves retained earnings

afs reserve

actuarial profit/loss

equity

equity at 31 December 2011 50,000 59,790 595,128 62,473 0 767,391retrospective adjustment Ias 19 0 0 +9,199 0 –9,199 0equity at 1 January 2012 50,000 59,790 604,327 62,473 –9,199 767,391Capital increases 0 0 0 0 0 0Overall profit for the financial year 0 0 +50,296 +37,271 –3,103 +84,464Distributions 0 0 –7,500 0 0 –7,500own shares 0 +1,145 0 0 0 +1,145other changes with a neutral effect on results

0 0 24 0 0 24

Equity at 31 December 2012 50,000 60,935 647,147 99,745 –12,302 845,524

statement of change in equity

stateMent oF CHanGe In eQuItY in €‘000

subscribed capital

reserves retained earnings

afs reserve

actuarial profit/loss

equity

equity at 1 January 2013 50,000 60,935 647,147 99,745 –12,302 845,524Capital increases 0 0 0 0 0 0Overall profit for the financial year 0 0 +52,704 +25,264 –2,724 +75,244Distributions 0 0 –7,500 0 0 –7,500own shares 0 –228 0 0 0 –228other changes with a neutral effect on results

0 0 +25 0 0 +25

Equity at 31 December 2013 50,000 60,707 692,376 125,008 –15,026 913,065

KeY FIGures 31 December 2013 31 December 2012

earnings per share in € 32 2.58 2.44roe before tax 9.34% 8.69%roe after tax 7.32% 7.52%Cost/income ratio 43.3% 44.2%risk/earnings ratio 26.7% 24.3%

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Cash flow statement as of 31 December 2013

CasH FLoW stateMent in €‘000 31 December 2013 31 December 2012

Annual Profit 64,368 60,683Non-cash items in annual profit and reconciliationsto cashflow from operating activities

– Depreciation/revaluation of fixed assets/financial assets/other working capital 10,305 –3,230– Increase/reduction in reserves and provisions for risks 50,757 42,485– Profits/losses from sale of financial and fixed assets –6,140 2,144– adjustments for other non-cash items –33,596 –16,013

sub-total 85,694 86,069

Changes to assets and liabilities from operatingactivities after correction for non-cash components:

– Loans to credit institutions 192,441 –96,754– Loans to customers –69,936 –178,714– trading assets –2,980 7,310– other working capital –98,772 –91,161– other assets from operating activities 11,138 3,169– Liabilities to credit institutions –33,796 194,277– Liabilities to customers 30,511 15,968– securitised liabilities 132,565 –52,923– other liabilities from operating activities –18,237 187

Operating cash flow 228,628 –112,572

Funds inflow from sales of– Fixed assets and intangible assets 496 499– Financial assets 138,449 289,868

Funds outflow through investment in– fixed assets –7,744 –7,520– Financial assets –204,240 –184,333

Investment cash flow –73,039 98,514

Dividend payments –7,500 –7,500Subordinated liabilities and other financing activities –27,612 –43,252

Financing cash flow –35,112 –50,752

Cash position at the end of the previous period 109,068 173,880

Operating cash flow 228,628 –112,574Investment cash flow –73,039 98,514Financing cash flow –35,112 –50,752

Cash position at the end of the period 229.545 109,068

Interest received 240,569 236,754Dividends received 25,766 26,450Interest paid –90,626 –98,812payment of tax on income –24,724 –10,182


accounting and valuation principlesthe Group accounts of the ‚Bank für tirol und Vorarlberg aG (BtV aG)‘ have been drawn up ac-cording to IFrs regulations and the interpretations by the International Financial reporting Interpreta-tions Committee (IFrIC) as these are to be applied in the european union. In establishing the present financial statements, all standards which were required for this financial year were applied.

the accounting and valuation methods applied uniformly across the group comply with the standards for european balance sheets, so that the informative value of these group financial state-ments equates to those pursuant to the provisions of the austrian Commercial Code (uGB), in conjunc-tion with the provisions of the austrian Banking act (BWG). the additional information required pursu-ant to austrian legislation is included in the annex.

The approval to publish the group financial statements was given by the Board of Directors to the supervisory Board on 5 March 2014 the approval for publication of the Group Financial statements by the supervisory Board is planned for 25 March 2014

principles of consolidation and scope of consolidationAll significant subsidiaries which are under the financial control of the Bank für Tirol und Vorarlberg AG (BTV) are fully consolidated in the group financial statements, pursuant to Ias 27. the consolidation of equity is carried out pursuant to the principles of IFrs 3, within the context of the acquisition method, by offsetting the acquisition costs against the identi-fied assets and liabilities allocated to the parent company on a proportional basis. the assets and liabilities of the subsidiaries are stated at their respec-tive fair market values at the time of acquisition. the difference between the acquisition costs and the net asset recorded at fair value is capitalised as good-will. the capitalised goodwill is subject to an annual impairment test pursuant to the provisions of IFrs 3, in connection with Ias 36 and Ias 38. subsidiaries of lesser significance for the asset, financial and income situation of the group are not fully consolidated.

In addition to BtV, the full scope of consolidation includes the following holdings:

BtV Group: notes 2013

FuLLY ConsoLIDateD CoMpanIes share in % Voting rights in %

BtV Leasing Gesellschaft m.b.H., Innsbruck 100.00% 100.00%BtV real-Leasing Gesellschaft m.b.H., Vienna 100.00% 100.00%BtV real-Leasing I Gesellschaft m.b.H., Innsbruck 100.00% 100.00%BtV real-Leasing II Gesellschaft m.b.H., Innsbruck 100.00% 100.00%BtV real-Leasing III nachfolge GmbH & Co KG, Innsbruck 100.00% 100.00%BtV real-Leasing IV Gesellschaft m.b.H., Innsbruck 100.00% 100.00%Gewerbegebiet Hall Immobilien GmbH, Innsbruck 100.00% 100.00%BtV anlagenleasing 1 GmbH, Innsbruck 100.00% 100.00%BtV anlagenleasing 2 GmbH, Innsbruck 100.00% 100.00%BtV anlagenleasing 3 Gesellschaft m.b.H., Innsbruck 100.00% 100.00%BtV anlagenleasing 4 GmbH, Innsbruck 100.00% 100.00%BtV Leasing Deutschland GmbH, augsburg 100.00% 100.00%BtV Leasing schweiz aG, staad 99.99% 99.99%Mpr Holding GmbH, Innsbruck 100.00% 100.00%BtV Hybrid I GmbH, Innsbruck 100.00% 100.00%BtV Hybrid II GmbH, Innsbruck 100.00% 100.00%

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In the financial year 2013, there were no changes to the scope of full consolidation. only ‚BtV Mobilien Leasing Gesellschaft m.b.H.‘ changed its name to ‚Gewerbegebiet Hall Immobilien GmbH‘.In accordance with their divergent financial year, the leasing companies are included in the group financial statements on the reporting date of 30 september. the remaining fully consolidated com-panies were consolidated using the reporting date of 31 December.

Significant holdings over which BTV has a major influence are recorded by the equity method. As a rule, a share of the voting rights of between 20% and 50% is considered to be a significant influence (‚associated company). according to the equity method, holdings in associated companies are included in the financial statements at acquisition cost plus any changes in the group‘s share of the net assets of the associated company after the initial consolidation.

the following holdings were included using the equity method:

at eQuItY ConsoLIDateD CoMpanIes share in % Voting rights in %

BKs Bank aG, Klagenfurt 18.90% 19.65%oberbank aG, Linz 13.95% 18.51%aLpenLÄnDIsCHe GarantIe-GeseLLsCHaFt M.B.H., Linz 25.00% 25.00%Drei-Banken Versicherungs-aktiengesellschaft, Linz 20.00% 20.00%VoMonosi Beteiligungs aG, Innsbruck 64.00% 49.00%

the holdings in oberbank aG and BKs Bank aG have been included in the group financial state-ments for the following reasons, despite the fact that they are below the 20% holding threshold:

For the holding in the oberbank aG, there is a syndication contract between BtV, the BKs Bank aG and the Wüstenrot Wohnungswirtschaft reg. Gen.m.b.H. For the holding in the BKs Bank aG, there is a syndication contract between BtV, the oberbank aG and the Generali 3 Banken Holding aG. the purpose of each of these syndication contracts is the maintenance of the independence of the bank. In this way, for both of the cited companies, there is the possibility of exercising a significant influence.

the associated companies are each taken into ac-count with the reporting date 30 september to enable a timely drawing up of the annual financial statements. the aLpenLÄnDIsCHe GarantIe-GeseLLsCHaFt M.B.H. is included with a reporting date of 31 December. Group internal and liabilities,

expenses and income internal to the group are elimi-nated except where they are not of insignificance. An interim net profit elimination has been waived, since material interim net profit figures were not available.

With the resolution of the voting trust agreement on 15 January 2014 (effective 1 January 2014), 15% of the voting rights in VoMoNoSi Beteiligungs AG flowed back to the BtV Group. Consequently, the company is included in the full scope of consolidation of the BtV Group in future. the resolution of the voting trust agreement is to be seen as an element in the imple-mentation of the overall strategy. 36 % of the shares in VoMonosi Beteiligungs aG will continue to be held by third parties as before.

as already publicised in the interim report on 30 June 2013, BtV will establish a 24.99% holding interest in Moser Holding aG. By the time the approval to publish the group financial statements was given by the Board of Directors to the supervisory Board on 5 March 2014, the transaction had still not been put


through. the board assumes that the purchase will take place in March 2014.

Valuation principlesSpot transactions in financial assets were recorded or closed out on the settlement day.

BTV‘s consolidated financial statements are drawn up in euros (€), as the functional currency of the group. unless otherwise indicated, all amounts are indicated in €‘000). rounding differences are pos-sible in the following tables.

Currency conversionassets and liabilities denominated in foreign currencies as well as non-completed foreign cur-rency cash transactions are converted at the eCB reference rate on the balance sheet date. Forward currency transactions are converted at current forward rates valid for their maturity. the conver-sion of the annual financial statements of the Swiss branches is performed according to the functional conversion method. Conversion differences of the previous years‘ results are taken to equity. along-side financial instruments in the functional curren-cy there are primarily financial instruments in Swiss francs, us dollars and Japanese yen.

Cash reservespetty cash and the credit with central bank are included in the cash reserves.

receivablesLoans to credit institutions and customers with fixed or determinable payment are balanced with the carried over acquisition costs. Where direct write-downs have been made, these have reduced the receivables. Value adjustments are shown openly as loan loss provisions.

risk provisionsthe particular risks of the banking business are rec-ognised by BtV through the creation of value adjust-ments and reserves as appropriate. For creditworthi-ness risks group-wide standard assessment criteria are applied and provided for by provision of securities. the total amount of risk provisions is, when it relates to balance sheet receivables, shown explicitly as a reduction on the asset side of the balance sheet, after the loans to credit institutions and loans to customers. risk provisions for off-balance sheet transactions (in particular completion guarantees) are held in the item

“reserves”. Loan loss provision for receivables includes individual adjustments for receivables for which an impairment has already been applied. In addition to the adjustment of individual values, this item also includes adjustments to the portfolio, which at the balance sheet date formed losses to the loan portfo-lio, which had already occurred, but had not yet been identified, whose amount is based on the probability of default and the losses to the loan portfolio which have not been provided for elsewhere. In determining the portfolio impairment, the economic environment and current events are considered.

trading assets Under trading assets are shown the financial assets held for trade. these assets are mainly used to gain profits from short-term price movements or trad-ing margins. trading assets are valued at fair value and impact the p&L. the trading assets position also includes positive market values of deriva-tives which are classified in the fair value option. Valuation is also carried out at fair value where this affects earnings.

Financial assets - at fair value through profit or lossFor securities and structured products with embed-ded derivatives which would otherwise require sepa-ration the Fair Value option is applied following Ias 39. all realised and unrealised valuation gains from the fair value option are shown in the income state-ment in the position “Income from financial assets - at fair value through profit or loss”. Interest and dividend income from the fair value option is shown under net interest income.

Financial assets - available for salesecurities which are assigned to the available-for-sale portfolio, and holdings in non-consolidated compa-nies are shown in the item “Financial assets – avail-able for sale”. Changes in the fair value of securities in the available-for-sale portfolio, which arise from valuation, are held in the capital, with no effect on the p&L until the asset is transferred out. the relevant actual value of investments in equity instruments (e. g. shares in limited companies) is determined on the basis of a stock exchange price or on the basis of rec-ognised valuation models. as far as these asset values are overall of minor relevance for the asset, finance and income situation of the Group, they will be valued at purchasing costs (at cost).

exceptional depreciation based on impairments are

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taken into the p&L under the item “Income from financial assets - available for sale”.

Financial assets – held to maturitythis balance sheet item includes the bonds and other fixed interest securities which are intended to be held long-term or until their maturity date, provided that they have a maturity date. these elements are assigned to the held-to-maturity portfolio. the valuation is according to the carried over acquisition costs, whereby any obligations or discount is resolved on the basis of the effective interest rate method up to maturity.

shares in at-equity valued companiesthis item records the holdings in those associated companies which are included according to the equity method.

DerivativesFinancial derivatives are shown in the balance sheet at their fair values, and any changes in value are immediately taken to the p&L.

to the extent that hedge accounting is applied at BtV, as defined in IAS 39, it is used to cover the income from interest rates and the market risk. as measures to minimise interest rate change risk and to reduce the market risk mainly fair value hedges are applied. the fair value hedge transactions are offset by swapping fixed interest deals in transactions linked to the money markets. In particular, this applies to the portion of own issues as well as securities in the afs portfolio. For the fair value hedge accounting mainly interest rate swaps are used.

If the fair value option under Ias 39 is applied, then the derivative financial instruments are being used to avoid or remove valuation mismatches between initial value and the valuation of assets and liabili-ties. Derivatives are valued using fair value with a p&L impact.

Financial guaranteesThe accounting for financial guarantees follow IAS 39. For their presentation in the balance sheet the net principle is applied. this method nets off the premium cash value and the commitment cash value from the financial guarantee.

Intangible fixed assetsthis item includes rental leases. the valuation is done at acquisition costs, reduced by regular de-preciation. the scheduled depreciation applied is straight line based on the estimated useful life. the useful life is 20 years.

property, plant and equipmentFixed assets - land and buildings, as well as produc-tion and business fittings are presented at acquisi-tion or production cost, minus scheduled linear depreciation corresponding to the expected useful life. the useful life for buildings is between 33 1/3 and 40 years, and for production and business fit-tings between 4 and 10 years.

Properties held as financial investmentsLand and buildings as well as fittings in rented proper-ties, which the BTV Group holds as long-term financial investments for the purpose of achieving rental income and capital value increases are accounted for at the purchase and production costs, reduced by scheduled linear depreciations corresponding to their expected length of use. For buildings, the useful life is 50 years, for fittings in rented property, the useful life is determined according to the duration of rental. the corresponding rental contracts are shown in the p&L item “other business revenues”.

Leasingthe leasing agreements which exist within the BtV Group are mainly classified as ‚Finance leases”, accord-ing which all the risks and benefits linked to the lease capital are transferred to the lessee. according to Ias 17 the lessor shows a receivable against the lessee to the value of the cash value of the contractually agreed payments and taking into account any residual value. In the case of ‚operating lease‘ agreements (in which case the risks and benefits linked to the property re-main with the lessor) the object of the lease is shown by the lessor under the heading “properties held as financial investments” and depreciation is applied using the rules for the relevant class of asset. Lease payments are collected on the p&L according to the transfer of use.


LiabilitiesLiabilities to customers or credit institutions as well as securitised debts are valued at their repayment or nominal value. nominal value. the amount of the securitised liabilities is reduced by the acquisi-tion cost of the issues held in the object.

securitised debts and subordinate capital loans, which have been secured with derivative financial instruments in the context of interest risk control are either assigned to the fair-value-option valua-tion category, or hedge accounting is applied.

all valuation gains from the fair value option are shown in the income statement in the item “Income from financial assets - at fair value through profit or loss”.

trading liabilities In trading liabilities the negative market values of derivatives in the trading portfolio or from the fair value option are recorded. Valuation is carried out at fair value.

reserves and provisionsLong-term reserves for staff (pension, redundancy, anniversary payments and death payment commit-ments) are shown as per Ias 19 using the projected unit credit method. Future commitments are valued on the basis of actuarial assessments, which not only take into account the pensions which are known at the date of balance sheet, but also the expected future rates of increase.

other reserves are created as required by Ias 37, if the company has existing legal or factual liabilities, which result from historical transactions or events, for which it is likely that to meet the commitment an outflow of economically productive resources is required, and a realistic estimation of the value of the liability is possible. reserves are subject to annual review and recalculation. this includes uncertainties in estimation which may lead to adjustments the following year.

tax claims and tax debtsClaims and liabilities relating to income tax are pre-sented in the items “tax claims” or “tax debts”.

For the calculation of deferred taxes, the balance sheet-related temporary concept is applied, which compares the valuations of assets and liabilities with the valuations which apply for taxation of the relevant group company. Differences between these two

valuations lead to temporary differences, for which deferred tax claims or liabilities must be shown in the balance sheet. Current income tax claims and liabilities are set at the tax values which are expected to be set-tled with the respective tax authorities.

Deferred tax assets on unused tax loss carry-forwards are presented in the balance sheet when it is likely that in the future, taxable profits of a corresponding amount will accrue. Deferred taxes are not discounted. the option of group taxation is used by BtV in its capacity as the parent company.

Genuine repurchase agreementsGenuine repurchase agreements are agreements whereby financial assets are transferred against the payment of an amount and where it is agreed at the same time that the financial assets must be returned to their owner at a later stage against the payment to the transferor of an amount defined in advance. The financial assets in question continue to remain in the balance sheet of the BtV Group. these are valued using the relevant presentation rules for the respective balance sheet item. the liquidity obtained from the pension transactions was classified as liabilities to credit institutions or liabilities to customers.

net interest incomethe net interest income includes revenue and ex-penses which represent compensation for the pro-vision of capital. In addition in this heading there are also the income from shares and other bonds as well as other variable interest securities, so long as it is not income and expenses from securities or derivatives, which are to be classified as trading assets or trading liabilities. also income from hold-ings and from stakes in associated companies - pro-vided they are not consolidated because of their smaller size - are also shown in this heading. this item also includes income from at-equity valued companies.

Interest income and expenses are delimited and re-corded on an accrual basis. Income from investments is recorded when the legal claim to payment arises.

Loan-loss provisions in the credit businessthe heading “Loan loss provision” includes increases to impairments and reserves or income from the can-cellation of impairments and reserves as well as direct write-offs and later receipts of already written-down liabilities in connection with credit transactions.

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net commission incomethe commission income is the balance of the revenues and expenses from services provisions. above all, these include income and expenses for services arising from payment handling, securities transactions, credit transactions as well as from for-eign exchange, foreign cash and precious metals business, and other miscellaneous services.

trading incomeThis heading includes profits and losses realised from the sale of securities, derivatives and other financial instruments from the trading portfolio, unrealised valuation gains and losses from the mar-ket valuation of securities, derivatives and other financial instruments from the trading portfolio, interest income and dividend receipts from the trading portfolio as well as refinancing costs for these financial assets.

operating expensesIn the operating expenses are included staff costs, material costs as well as scheduled depreciation of fixed assets, amortisation of intangible assets and of properties held as financial investments for the reporting period.

In the staff costs are included wages and salaries, variable salary elements, legally required and voluntary social costs, staff-related taxes and levies as well as expenses (including changes to reserves) for redundancies, pensions, anniversary payments and death benefits.

Under material costs are, alongside IT costs, the office building costs and the costs for running the office, the costs for advertising and marketing and legal and consultancy costs and other administrative costs.

Other operating profitIn other operating profit are shown all the revenues and costs of the BtV Group which are not attribut-able to current business activities. this includes in particular the profits from the renting or sale of properties maintained as financial investments and other fixed assets, cost of sales and revenues for non-banking activities, such as insurance. Furthermore, in addition to expenses for other taxes and levies, this item also included expenses for the increase in reserves as well as income from the liquidation of other reserves.

Profit arising from financial assets – at fair value through profit or lossunder this item is shown the income from the revaluation or sale of securities, derivatives, loans and own issues in the fair value portfolio.

Profit arising from financial assets – available for salerevenue from sales and impairments of securities and holdings in the available-for-sale portfolio are posted here.

Profit arising from financial assets – held to maturity this item includes the income from sales and im-pairments of securities within the held-to-maturity portfolio.

taxes on earningsCurrent and deferred taxes on income are recorded under this item.

Discretionary decisions, assumptions and estimatesIn drawing up the BTV group financial statements, values are determined on the basis of discretionary decisions, as well as through the use of assump-tions and estimates. the associated uncertainties may lead in future reporting periods to additional income or expenses or make it necessary to adjust the book value in the balance sheet. the manage-ment estimates and assumptions used are based on historical experience and other factors such as planning and likely expectations and predictions of future events, based on current assessments, and this is with the objective of providing meaningful information on the asset, financial and earnings situation of the company.

areas of application for assumptions and estimates lie in the determination and balancing of loan loss provisions in the loan business, in impairment as-sumptions for the available-for-sale or held-to-ma-turity portfolio and in the formation of long-term payroll reserves and other reserves. uncertainties in estimates also arise in determining fair values on the basis of valuation models for financial assets and liabilities, if no quoted market price is avail-able. assumptions are also required in determining deferred tax assets, with regard to the expected date of occurrence and the amount of future tax-able income as well as for future tax planning. the specification of the expected useful life of tangible assets is also based on an estimate.


Disclosure regulationsthe disclosure of the BtV Group (Basel II - Column III) can be found online at www.btv.at in the menu item “Company > Investor relations > Informationen according to offenlegungsverordnung [Disclosure ordinance] (offV)”.

Use of modified/new IFRS/IAS standardsThe table on page 55 shows published or modified standards and interpretations at the balance sheet date, which were applied for the first time during the reporting period. the prospective application

of IFrs 13 and the retrospective application of Ias 19 have a considerable impact.

Due to the first time application of IFRS 13, the Notes Information have been extended to Fair Value.

as a result of the changes to Ias 19, the actuarial gains and losses from performance-oriented plans are no longer presented in the profit and loss as before, but within the other results in the equity section. the adjustments for 2012 and the effects on 2013 are illustrated in the table below.

CorreCtIons Ias 19 In €‘000 2013 2012

Income from at-equity valued companies +1,021 –99operating expenses +2,724 +3,103Taxes on earnings and profit –679 –776Group net profit for the year +3,066 +2,228

eps (earnings per share) in € 0.13 0.09Diluted earnings per share in € 0.13 0.09

Profits/losses with regard to latent taxes, which were applied directly against equity 679 776Changes in at-equity valued companies recognised directly in equity –1,021 99revaluation from performance-oriented pension plans –2,724 –3,103sum of income and expenses recorded directly under equity –3,066 –2,228

Overall profit for the financial year 0 0

Within the balance sheet, only transfers within the equity take place so that the presentation of the

adjusted accounts at 1 January 2012 was waived.

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stanDarD/InterpretatIon naMe to Be appLIeD For

FInanCIaL Years FroM

aLreaDY

aDopteD BY eu

Ias 1 – amendments presentation of Items of other Comprehensive Income

1 July 2012 Yes

Ias 12 – amendments Deferred tax: recovery of underlying assets 1 January 2013 YesIas 19 – amendments Employee Benefits 1 January 2013 YesIFrs 1 – amendments Severe hyperinflation and removal of fixed

dates for first-time adopters1 January 2013 Yes

IFrs 1 – amendments Government Loans 1 January 2013 YesIFrs 7 – amendments Disclosures – offsetting Financial assets

and Financial Liabilities1 January 2013 Yes

IFrs 13 Fair Value Measurement 1 January 2013 YesIFrIC 20 stripping Costs in the production phase

of a surface Mine1 January 2013 Yes

Improvements to IFrss (May 2012) 1 July 2012 Yes

The next table shows newly published or modified standards and interpretations on the balance sheet date which came into effect through the IasB or in part through the eu endorsement procedure but

application of which is not yet mandatory. these have not been applied to these consolidated finan-cial statements.

stanDarD/InterpretatIon naMe to Be appLIeD For

FInanCIaL Years FroM

aLreaDY

aDopteD BY eu

Ias 27 – amendments separate Financial statements 1 January 2014 YesIas 28 – amendments Investments in associates and Joint Ventures 1 January 2014 YesIas 32 – amendments offsetting Financial assets and

Financial Liabilities1 January 2014 Yes

IFrs 10 Consolidated Financial statements 1 January 2014 YesIFrs 11 Joint arrangements 1 January 2014 YesIFrs 12 Disclosures of Interests in other entities 1 January 2014 YesIFrs 10, IFrs 12 and Ias 27 – amendments

Investment entities 1 January 2014 Yes

IFrs 10, IFrs 11 and IFrs 12 – amendments

transition Guidance 1 January 2014 Yes

Ias 36 – amendments recoverable amount Disclosures for non-Financial assets

1 January 2014 no

Ias 39 – amendments novation of Derivatives and Continuation of Hedge accounting

1 January 2014 no

IFrIC 21 Levies 1 January 2014 noIFrs 9 Financial Instruments 1 January 2018 no

Insofar as BtV has already investigated the remain-ing standards and interpretations, no significant changes in terms or materiality are expected in fu-ture consolidated financial statements. The new fi-nancial reporting regulations IFrs 10 ‚Consolidated Financial statements‘ IFrs 11 ‚Joint arrangements‘ as well as IFrs 12 ‚Disclosures of Interests in other

entities‘ have no impact on the scope of consolida-tion of the BTV Group and therefore no significant effects on the group accounts. the impact of IFrs 9 on the BtV Group are further investigated after final publication, a reliable statement regarding its influence on future consolidated financial state-ments is not possible from today‘s perspective.


Balance sheet – assets

1 CasH reserVe in €‘000 31 December 2013

31 December 2012

petty cash balance 41,426 39,340Credit with central bank 188,119 69,728

Cash reserves 229.545 109,068

2 Loans to CreDIt InstItutIons in €‘000 31 December 2013

31 December 2012

Loans to domestic credit institutions 134,817 165,138Loans to foreign credit institutions 187,033 301,871

Loans to credit institutions 321,850 467,009

3 Loans to CLIents in €‘000 31 December 2013

31 December 2012

Loans to austrian clients 4,306,350 4,334,783Loans to foreign clients 2,098,193 2,052,684

Loans to clients 6,404,543 6,387,467

Loans to customers include finance-lease con-tracts with a net investment value in the amount of €624,180,000 (previous year: €622,044,000). the corresponding gross investment value of these leasing contracts amounts to €693,194,000 (previous year: €684,525,000), the associated unrealised financial revenue amounted to €69,014,000 (previous year:

€62,481,000). the residual value of the total lease assets are guaranteed both in the current and previous financial years. On the balance sheet date, there were value adjustments for unrecoverable leasing receiva-bles in the amount of €10,719,000 (previous year: €15,589,000).

3a LIFetIMe to MaturItY BreaKDoWn FInanCe Lease Loans in €‘000

< 1 year 1 – 5 years > 5 years total

Gross investment value 154,732 332,152 206,310 693,194Unrealised financial revenue 13,289 37,477 18,248 69,014net investment value 141,443 294,675 188,062 624,180

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4 rIsK proVIsIons in €‘000 2013 2012

opening balance of credit transactions at 1 January 194,492 183,941– releases –6,893 –5,773+ allocation 45,220 39,502– application –25,662 –23,184(+/–) Changes arising from currency differences –11 6

Loan-loss provision for credit transactions at 31 December 207,146 194,492

opening balance commitments at 1 January 1,107 383– releases –74 –97+ allocation 519 821– application 0 0(+/–) Changes arising from currency differences 0 0

reserves performance Guarantees at 31/12. 1,552 1,107

overall total risk provisions at 31/12. 208,698 195,599

5 traDInG assets in €‘000 31 December 2013

31 December 2012

Debenture bonds and other fixed-interest securities 0 0equities and other variable-interest securities 0 0positive market values arising from derivative transactions – trading

Currency related tradesInterest related tradesother trades

6,0231,9054,118

0

2,4511,4191,032

0positive market values arising from derivative transactions – Fair value option

Currency related tradesInterest related tradesother trades

21,1850

21,1850

32,8750

32,8750

Trading assets 27,208 35,326


6 FInanCIaL assets – at FaIr VaLue tHrouGH proFIt or Loss in €‘000 31 December 2013

31 December 2012

Debenture bonds and other fixed-interest securitiesListedunlisted

145,773145,773

0

193,363193,363

0equities and other variable-interest securities

Listedunlisted

9,4509,149

301

9,9049,046

858

Financial assets - at fair value through profit or loss 155,223 203,267

7 FInanCIaL assets – aVaILaBLe For saLe in thousand € 31 December 2013

31 December 2012


980,290975,154

5,136

885,885820,199

65,686equities and other variable-interest securities

Listedunlisted

72,83510,41162,424

69,4126,433

62,979other shareholdings

Credit institutionsnon-credit institutions

30,33510,01820,317

27,88910,04317,846

Other affiliated shareholdings 167,729 128,127

Financial assets - available for sale 1,251,189 1,111,313

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8 FInanCIaL assets – HeLD to MaturItY in €‘000 31 December 2013

31 December 2012


846,262846,262

0

787,509 762,545

24,964

Financial assets – held to maturity 846,262 787,509

9 HoLDInGs In at-eQuItY VaLueD CoMpanIes in €‘000 31 December 2013

31 December 2012

Credit institutions 329,656 312,998non-credit institutions 4,016 5,591

Shares in at-equity valued companies 333,672 318,589

the fair value of the shares in at-equity valued companies amounted to €306,849 in ‚000 (previous year: €305,289,000).

In case of indicators which could possibly show a possible reduction in value, the equity book value was subjected to an impairment test in accordance with Ias 36. the test was performed with the use of a valuation procedure on the basis of future finan-cial surpluses. Currently, no need for a devaluation results from this.


FIXeD asset oVerVIeW – 31 DeCeMBer 2012 in €‘000

acquis. value 1 January 2012

additions Disposals

Intangible fixed assets 7,466 1 0Land and buildings 92,642 1,574 –399Production and business fittings 48,338 2,911 –3,994Properties held as financial investments (IAS 40) 67,416 3,494 –60other shareholdings 33,178 3,951 0Other affiliated shareholdings 116,274 11,888 –35Holdings valued at-equity 297,425 21,164 0

total 662,739 44,984 –4,487

10 FIXeD asset oVerVIeW – 31 DeCeMBer 2013 in €‘000


additions Disposals

Intangible fixed assets 7,467 55 0Land and buildings 95,783 2,638 –1,084Production and business fittings 47,274 4,951 –8,117Properties held as financial investments (IAS 40) 68,947 417 –2,700other shareholdings 37,129 2,689 –243Other affiliated shareholdings 128,127 39,602 0Holdings valued at-equity 318,589 16,755 –1,672

total 703,316 67,106 –13,816

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FIXeD asset oVerVIeW – 31 DeCeMBer 2012 in €‘000


additions Disposals

Intangible fixed assets 7,466 1 0Land and buildings 92,642 1,574 –399Production and business fittings 48,338 2,911 –3,994Properties held as financial investments (IAS 40) 67,416 3,494 –60other shareholdings 33,178 3,951 0Other affiliated shareholdings 116,274 11,888 –35Holdings valued at-equity 297,425 21,164 0

total 662,739 44,984 –4,487

Reclassification Group transfers

changes to currency

exchange rates

acquis. value31 December

2012

accumulated depreciation

Book value 31 December

2012

Depreciation Book value31 December

20110 0 0 7,467 –7,433 34 –191 224

1,965 0 0 95,783 –22,188 73,595 –1,961 73,6880 0 18 47,274 –37,071 10,202 –2,948 11,073

–1,965 0 62 68,947 –19,661 49,286 –1,503 47,7790 0 0 37,129 –9,239 27,889 –6,001 29,9400 0 0 128,127 0 128,127 0 116,2740 0 0 318,589 0 318,589 0 297,425

0 0 81 703,316 –95,593 607,724 –12,604 576,402

Reclassification Group transfers

changes to currency

exchange rates

acquis. value31 December

2013

accumulated depreciation


2013

Depreciation Book value31 December

20120 0 0 7,522 –7,472 51 –38 34

–5 0 0 97,332 –23,628 73,704 –2,029 73,5955 0 –44 44,069 –32,409 11,660 –3,370 10,2020 0 –110 66,554 –19,800 46,754 –1,424 49,2860 0 0 39,575 –9,239 30,335 0 27,8890 0 0 167,729 0 167,729 0 128,1270 0 0 333,672 0 333,672 0 318,589

0 0 –154 756,453 –92,548 663,905 –6,862 607,724


10a IntanGIBLe FIXeD assets in €‘000 31 December 2013

31 December 2012

Intangible fixed assets 51 34

Intangible fixed assets 51 34

10b propertY, pLant anD eQuIpMent in tsd. € 31 December 2013

31 December 2012

Land and buildings 73,704 73,595Production and business fittings 11,660 10,202

Property, plant and equipment 85,364 83,797

10c propertIes HeLD as FInanCIaL InVestMents in €‘000 31 December 2013

31 December 2012

Properties held as financial investments 46,754 49,286

Properties held as financial investments 46,754 49,286

Fair value of the properties held as financial invest-ments amounted to € 54,469,000 (previous year: €58,070,000). the determination of fair value was achieved by use of revenue value calculations for which the agreed rents provided the basis.

the rental income in the reporting year amount to €3,285,000 (previous year: €3,292,000), the expens-es relating to achieving the rental income totalled including depreciation €2,364,000 (previous year: €2,521,000).

10d reMaInInG LIFe to MaturItY BreaKDoWn operatInG Lease ContraCts I in €‘000

< 1 year 1 – 5 years > 5 years total

Future minimum leasing payments 698 2,791 11,240 14,729

Under the item ‚Properties held as financial investments‘, book values from operating lease contracts are included at a total of €14,648,000 (previous year: €14,919,000. the fair value amounts

to €14,929,000 (previous year: €15,039,000). For conditional rental payments there was no income during the reporting year.

properties at fair value amounted to €86,158,000 (previous year: €87,134,000).

In the reporting period, no borrowing capital costs were capitalised (previous year: €30,000). an inter-est rate of 2.18% applied in the previous year.

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11a Latent taX reFunDs in €‘000 31 December 2013

31 December 2012

Financial assets - at fair value through profit or loss 0 3,764Financial assets - available for sale 0 –14,075Financial assets – held to maturity 0 –951Long-term payroll reserves 0 5,478Hedge accounting and Derivatives 0 –4,503provision for risks 0 14,555revaluation Finance Leasing and other –1,455 –221other latent tax refunds and tax debts abroad 1,678 0

Deferred tax refunds 223 4,047

12 otHer assets in €‘000 31 December 2013

31 December 2012

positive market values from derivatives trades 50,193 70,169other assets 43,593 63,980

Other assets 93,786 134,149

11 taX reFunDs in tsd. € 31 December 2013

31 December 2012

Current tax refunds 1 4Deferred tax refunds 223 4,047

Tax refunds 224 4,051


Balance sheet – Liabilities

13 LIaBILItIes to CreDIt InstItutIons in €‘000 31 December 2013

31 December 2012

austrian credit institutions 679,439 853,664Foreign credit institutions 1,073,265 958,832

Liabilities to credit institutions 1,752,704 1,812,496

14 LIaBILItIes to CLIents in €‘000 31 December 2013

31 December 2012

savings depositsaustrian 1,039,940 1,134,416Foreign 135,843 138,477

sub-total savings deposits 1,175,783 1,272,893

other depositsaustrian 3,081,270 2,940,130Foreign 1,170,516 1,182,076

sub-total other deposits 4,251,786 4,122,206

Liabilities to clients 5,427,569 5,395,099

15 seCurItIseD LIaBILItIes in €‘000 31 December 2013

31 December 2012

Debentures 681,527 556,147Domestic bonds 198,964 192,398

Securitised debt 880,491 748,545

of which fair value 401,711 395,467

the redemption amount for the securitised debts, for which the fair value option was exercised to-talled €396,406,000 (previous year: €382.760,000).the difference between the fair value of the se-

curitised liabilities for which the fair value option was exercised and their repayment amount totals €5,305,000 (previous year: €12,707,000).

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16 tradinG liabilities in €‘000. 31 december 2013

31 december 2012

negative market values arising from derivative transactions – tradingcurrency related tradesinterest related trades

1,7877,1828,969

11,9591,082

10,877negative market values arising from derivative transactions – Fair value option

currency related tradesinterest related trades

12,4740

12,474

18,9950

18,995

Trading liabilities 21,443 30,954

17 reserves in €‘000 31 december 2013

31 december 2012

long-term payroll reserves 65,590 63,939other reserves and provisions 4,011 5,296

Reserves and provisions 69,601 69,235

pensions reservesThe benefits and entitlements are based on the collective bargaining agreement regarding the revision of pensions rights. the area of applica-tion covers all btv employees employed in austria who are covered by the collective bargaining agreement for banks and bankers and who joined before 1 January 2002. the collective bargaining agreement governs benefits and entitlements to occupational disability and accident insurance, old age pension and early retirement pension, admin-istrative pension, social contributions and care allowance contribution.

For the surviving dependants, regulations are included about pensions for surviving dependants in the form of widow, widower and orphan pen-sion, care allowance contribution, widow/widower settlement and quarter of the death.

in the calculation of the reserves, the entitlements are also included in addition to the benefits. At January 2000 entitlements to old age and early retirement pension including benefits to surviving dependents based on this were transferred over to the vbv pension fund.

severance pay provisionsFor all employees of btv and austria whose work-ing relationship began before 1 January 2003, there is in accordance with the regulations of the employment law or severance pay law for workers a claim for severance,which will be paid out in the case of respective reasons for termination. For all other working relationships, btv pays contribu-tions into the corporate pension insurance fund according to the regulations of the bMsvG.

Furthermore, in accordance with the collective bar-gaining agreement for banks and bankers, there exist a claim for two additional months‘ pay as severance payment if the working relationship lasted more than 5 years and was terminated by the employer or more than 15 years and is terminated due to an old-age pension or a disability pension being taken. in contrast to the legal severance, this collective-bargaining claim exists as well for working relationships which began after 31 december 2002 or will begin in the future.in addition, in accordance with the regulations of the collective bargaining agreement for pension fund for permanent employees who joined after 31 december 1996, there is an additional entitlement for 3 months‘ pay (20 years of service) or 4 months‘ pay (25 years of service) if the employer gives notice. For employees in Germany and in switzerland, there is no obligation to build up pension or sever-ance reserves.

|65 64 btv business report 2013

17b otHer LonG-terM personneL reserVes in €‘000 anniversary reserves

other staff reserves

total

Other long-term staff reserves as at 1 January 2012 4,819 2,442 7,261

Income recorded for the period. Interest chargeperiod of service costActuarial Profit (–)/Loss (+)

197336

–103

1050

56

302336–47

Miscellaneouspayments from these obligations –316 –33 –349

Other long-term personnel reserves as at 31 December 2012 4,933 2,570 7,503

Income recorded for the period. Interest chargeperiod of service costActuarial Profit (–)/Loss (+)

178332–18

980

155

276332137

Miscellaneouspayments from these obligations –362 –81 –443

Other long-term personnel reserves as at 31 December 2013 5,063 2,742 7,805

17a staFF reserVes For BeneFIts aFter terMInatIon oF tHe WorKInG reLatIonsHIp: perForManCe-orIenteD pLans in €‘000

reserves for pensions.

severance reserves

total

Old-age pension severance reserves as at 1 January 2012 40,088 15,223 55,311

Income recorded for the period. Interest chargeperiod of service cost

1,480198

638705

2,118903

Included in the other resultsActuarial Profit (–)/Loss (+) from changes to the demographic assumptionsActuarial Profit (–)/Loss (+) from changes to financial assumptions

0

2,650

0

453

0

3,103Miscellaneous

payments from these obligations –3,386 –1,613 –4,999

Old-age pension and severance reserves as that 31 December 2012 41,030 15,406 56,436

Income recorded for the period. Interest chargeperiod of service cost

1,338231

576705

1,914936

Included in the other resultsActuarial Profit (–)/Loss (+) from changes to the demographic assumptionsActuarial Profit (–)/Loss (+) from changes to financial assumptions

0

2,228

0

496

0

2,724Miscellaneous

payments from these obligations –3,026 –1,199 –4,225

Old-age pension and severance reserves as that 31 December 2013 41,801 15,984 57,785

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17c oVerVIeW LonG-terM personneL reserVes 2009–2013 in €‘000

31 December 2013

31 December 2012

31 December 2011

31 December 2010

31 December 2009

pension reserves 41,801 41,030 40,088 39,044 40,840redundancy reserves 15,984 15,406 15,223 14,790 14,799anniversary reserves 5,063 4,933 4,819 4,637 4,524other payroll reserves 2,742 2,570 2,442 2,162 2,162

total 65,590 63,939 62,572 60,633 62,326

17d aCtuarIaL assuMptIons 2013 2012

Financial assumptionsrate for the discountpay increaseIncrease the old-age pensionDiscount for employee turnover

3.50%3.25%2.75%

0

3.875%3.25%2.75%

0

Demographic assumptionsage for pension entitlement: female employeesage for pension entitlement: male employeesmortality table

65 years65 years

aVÖ 2008

65 years65 years

aVÖ 2008

The expense contained in the profit and loss ac-count for severance, pensions, anniversary pay-ments and other personnel reserves is shown in personnel expenses, with the exception of interest expense, which is presented in the interest results.

Actuarial profit and loss for severance and old-age pensions are shown in the other result and are based entirely on adjustments and changes to actuarial assumptions according to experience.

The weighted average term of the defined con-tractual obligations (duration) is 12.49 years in the reporting year for severance payments, 13.46 years for pensions obligations and 20.66 years for quarters of death.

no contributions to the plan are expected for the next reporting periods.

the evaluation of the existing personnel reserves is based on assumptions regarding the calculated interest rate, the retirement age, the life expec-tancy, the fluctuation rate and the future salary developments. In the calculations, the current regulations for the gradual alignment of the retirement age for men and women to 65 were taken on board.

In the case of a change of the calculated interest rate by +/– 1.00 percentage points, a change of +/– 0.50 percentage points for pay increases as well as a change

of +/– 0.50 percentage points for pension increases, the contributions to the reserves would develop as follows if all other parameters remain the same:

17e sensItIVItY anaLYsIs in €‘000

Calculated interest rate pay increase pension increases

–1.00% 1.00% –0.50% 0.50% –0.50% 0.50%severances 17,934 14,059 14,899 16,831 0 0pensions 47,822 37,000 40,820 42,863 40,321 43,387


18 taX DeBts in €‘000 31 December 2013

31 December 2012

Current tax owed 9,878 1,399Deferred tax owed 5,152 10,682

Tax debts 15,030 12,081

17g otHer reserVes in €‘000

position 31 December

2012

Currency conversion

additions Consumption reductions Reclassifi-cation

position 31 December

2013other reserves and provisions

5,296 –7 720 –1,874 –120 –4 4,011

Other reserves and provisions

5,296 –7 720 –1,874 –120 –4 4,011

the other reserves have been created as required by Ias 37 for legal or actual obligations of the group. In BtV this balance sheet item mainly includes reserves for off-balance sheet Guarantees and other liabili-

ties, legal cases as well as for taxes and levies. the consumption of reserves in the current year can be expected with a high degree of probability.

17f MaturItY proFILe oF tHe eXpeCteD BeneFIt paYMents in €‘000

2014 2015 2016 2017 2018 total

severances 664 368 322 469 874 2,697pensions 2,760 2,698 2,545 2,354 2,154 12,511

The maturity profile of the expected benefit pay-ments from the staff reserves formed looks as fol-

lows for the reporting years 2014 to 2018:

18a Latent taX oBLIGatIons in €‘000 31 December 2013

31 December 2012

Financial assets - at fair value through profit or loss –2,097 0Financial assets - available for sale 22,699 3,458Financial assets – held to maturity 775 0Long-term payroll reserves –6,209 0Hedge accounting and Derivatives 3,541 0provision for risks –19,257 0Deferred tax bring forward losses 0 0revaluation Finance Leasing and other 3,929 5,239other latent tax refunds and tax debts abroad 1,771 1,985

Deferred tax owed 5,152 10,682

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19 otHer LIaBILItIes in €‘000 31 December 2013

31 December 2012

negative market values from derivatives trades 41,440 74,400other liabilities 59,341 68,819

Other liabilities 100,781 143,219

20 suBorDInateD CapItaL in €‘000 31 December 2013

31 December 2012

supplementary capital 326,798 358,215Hybrid capital 81,043 81,005

Subordinated capital 407,841 439,220

of which fair value 153,085 162,082

the supplementary capital shown among subordi-nated capital shows maturities during the financial years 2014-2030 and coupons of between 0.528% and 6.500% (previous year: 0.496% and 5.750%).

In the reporting year, no subordinated supplemen-tary capital in accordance with section 45 (4) BWG was issued (previous year: €3,000,000 with maturity in 2020). In the reporting year, €27,500,000 (previ-ous year: €45,350,000) listed supplementary capital was repaid.

an early redemption of the bonds by the bank or the lender is not possible. Interest can only be paid, if they are covered by the annual profit as defined by company law before assignments to reserves. repayment on maturity is only possible on pro-portional deduction for the losses which occurred during the lifetime. For subordinated capital which was issued after 01/01/2010, the interest is only to be paid out, if this is covered by disposable profits (section 23 para 7 line 2 BWG)

the overall expense for subordinated liabilities in the year under review was €8,797,000 (previous year: €10,536,000).

In the financial year 2014, issued supplementary capital with a total nominal amount of €70,588,000 (previous year: €27,500,000) will fall due.

the repayment amount for the subordinated capital for which the fair value option was exer-cised amounted to €137,804,000 (previous year: €141,912,000). the differential amount between the fair value of the subordinate capital for which the fair value option was exercised and the repay-ment amount totals €15,281,000 (previous year: €20,170,000).

During the reporting year for the BtV Group, no hy-brid loan was issued (previous year: €0). overall inter-est paid for the hybrid loans amounted to € 5,199,000 (previous year: €5,199,000).

21 eQuItY

on 31st December 2013 the issued capital totals €50.0 million (previous year: €50.0 million). the share capital is represented by 22,500,000 (previ-ous year: 22,500,000) – bearer – voting individual shares (common shares). In addition 2,500,000 (pre-vious year: 2,500,000) – bearer – non-voting shares (preference shares) were issued, with a minimum dividend of 6% attached (in the event of dividends

being suspended, to be paid retrospectively). the book value of the shares held by the company was €571,000 on the balance sheet date (previous year: €343,000). the capital reserves include premium values from the share issues. In the capital reserves both retained earnings as well as income and ex-penses with no effect on profits were accounted.


The equity shown for BTV credit institution group according to the provisions of the Austrian Banking Act (BWG) is made up as follows:

The core capital ratio is the quotient from core capital (Tier 1) less 50% of the deductions in accordance with Section 23 (13) BWG and risk-weighted assessment basis of the credit, market and operational risk. The equity ratio is calculated as the quotient of qualifying equity under section

23 para. 14 BWG and the risk-weighted assessment basis of the credit, market and operational risk. In 2013, for the first time, also the market and opera-tional risk was considered in the assessment basis for the quota calculation and the previous year‘s values were adjusted.

deVelopmenT of The ShAreS In cIrculATIon in shares 2013 2012

Issued shares in circulation 01/01. 24,978,583 24,921,868purchase of own shares –14,759 –5,340Sale of own shares 1,045 62,055Issued shares in circulation 31/12 24,964,869 24,978,583plus own shares in Group portfolio 35,131 21,417Shares issued 31/12 25,000,000 25,000,000

21a conSolIdATed equITy of The BTV cI Group in € million 31 december 2013

31 december 2012

Share capital 50.0 50.0Treasury shares held in portfolio –0.6 –0.3Visible reserves 556.0 512.3difference from consolidations under Section 24 para. 2, line 2, 4 of Banking Act (BWG) 180.3 163.0hybrid capital 81.0 81.0Intangible assets –0.1 –0.0core capital (Tier 1) 866.7 806.0

qualifying supplementary capital – bonds 109.0 194.6other supplementary capital 42.0 31.7Subordinated bonds (supplementary capital with less than 3 years to maturity) 66.1 82.5Supplementary capital (Tier 2) 217.1 308.8

deduction of cI/fI holdings more than 10% shareholding –119.5 –119.5deduction holding cI/fI less than 10% holding 0.0 0.0deductions from core capital and supplementary equity –119.5 –119.5

qualifying equity (excluding Tier 3) 964.3 995.3

equity applied under Section 23 para. 14 line 7 BWG (Tier 3) 0.1 0.1qualifying equity under Section 23 para. 14 BWG 964.4 995.4

risk-adjusted assessment basis under Section 22 6,055.4 5,992.1equity requirement credit risk under Section 22 para. 2 BWG 452.2 453.2equity requirement for trading book under Section 22o para. 2 BWG 0.1 0.1equity requirement for operational risk under Section 22k BWG 32.2 26.1Total equity requirements 484.4 479.4Surplus equity 480.0 516.0

core capital ratio in % 13.33% 12.45%Total capital ratio in % 15.93% 16.61%

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22 Interest InCoMe in €‘000 2013 2012

Interest and similar income fromLending and money market transactions with credit institutions 8,360 14,835Lending and money market transactions with clients 152,288 157,991Debenture bonds and fixed-interest securities 49,441 54,939equities and variable-rate securities 1,241 1,460other shareholdings 1,242 826other transactions 29,239 7,529

sub-total interest and similar income 241,811 237,580

Interest and similar expenses onCredit institutions deposits –9,871 –18,323Customer deposits –31,225 –47,985securitised debt –3,161 –7,075subordinated capital –13,348 –15,162other trades –33,021 –10,267

sub-total interest and similar expenses –90,626 –98,812

Income from at-equity valued companies 24,524 25,525

Net interest income 175,709 164,293

Information on overall income statement and segment reports

The interest income for financial assets for which valuation is not carried out at fair value amounts to €263,677,000 (previous year: €258,656,000). The corresponding interest costs for financial liabilities amounts to €84,509,000 (previous year: €90,338,000).

For impaired financial assets, an accumulated interest in the amount of €1,742,000 (previous year: €2,940,000) was collected.


25 traDInG InCoMe in €‘000 2013 2012

Income from derivatives –295 998Income from securities 388 1,072Income from foreign exchange and notes and coins transactions 908 1,142

Trading income 1,001 3,212

26 operatInG eXpenses in €‘000 2013 2012

payroll –60,401 –59,491thereof salaries and wages –44,721 –44,333thereof legal social contributions –12,424 –12,211thereof other personnel costs –2,004 –1,827thereof expenditures for long-term personnel deferrals –1,252 –1,120

Materials –28,764 –26,743amortisation –6,862 –6,603

Operating expenses –96,027 –92,837

the personnel expenditure includes expenses for contribution-oriented pension plans in the amount of €1,432,000 (previous year: €1,379,000).

23 rIsK proVIsIons In CreDIt transaCtIons in €‘000 2013 2012

allocation of on-balance sheet provision –45,220 –39,502allocation of off-balance sheet provision –519 –821Loan loss insurance premiums –4,405 –4,437release of on-balance sheet provisions 6,893 5,773release of off-balance sheet provisions 74 97Direct amortisation –3,965 –1,432Income from amortised receivables 258 380

Loan-loss provisions in the credit business –46,884 –39,942

the allocations to and write backs from provisions for off-balance sheet loan risks are contained in the above figures.

24 net CoMMIssIon InCoMe in €‘000 2013 2012

Credit transaction 5,703 5,873payment transactions 13,108 12,604securities trading 21,601 18,508Currency, foreign exchange and precious metals trading 3,094 4,254other services business 1,773 1,071

Net commission income 45,279 42,310

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In addition, in the reporting year, an average of 26 employees (previous year: 28 employees) were sent

to closely related companies. these are not taken into account in the table above.

27 otHer operatInG InCoMe in €‘000 2013 2012

other operating income 6,102 7,506other operating expenses –8,341 –10,061Hedge accounting income –33 132

Other operating profit –2,272 –2,423

28 InCoMe FroM FInanCIaL assets – at FaIr VaLue tHrouGH proFIt or Loss in €‘000

2013 2012

Profit arising from financial assets – at fair value through profit or loss 2,518 7,760

Profit arising from financial assets – at fair value through profit or loss 2,518 7,760

26b aVeraGe nuMBer oF eMpLoYees, WeIGHteD aCCorDInG to personnel years 2013 2012

White collar 766 779Blue collar 27 26

Payroll 793 805

the costs invoiced by the auditors of the Group (KpMG austria GmbH auditor and accounting company) for the audit of the individual and group

financial statements as well as other services rendered amounted to (incl. Vat):

26a auDItInG eXpenses in €‘000 2013 2012

audit of year end accounts company and group 310 255tax advisory services 65 0other services 29 39

Auditor expenses 404 294

the total amount of taxes on income which apply to other Income totalled € 0 in 2013. (previous year: €0).


29 proFIt FroM FInanCIaL assets – aVaILaBLe For saLe in €‘000 2013 2012

Profit arising from financial assets – available for sale 2,815 –8,521

Profit arising from financial assets – available for sale 2,815 –8,521

From the sales of available financial assets in the reporting period in area of fixed interest and non-fixed interest securities a total loss to the tune of € 10,953,000 (previous year: gain € 34,745,000) was recorded directly within equity.

In the reporting period, a total profit from other in-vestments and other associated investments in the amount of €38,975,000 (previous year: €5,112,000) was recorded directly within equity.

In addition, in the reporting year, due to sales or repayments from the afs assessment reserves €2,758,000 profit (previous year: loss €226,000) was booked in the profit and loss item “Income from finan-cial assets - available for sale”. In addition, this result item in the financial year 2013 includes permanent write-downs (impairments) to the value of € 107,000 (previous year: €8,301,000).

31 taXes on InCoMe anD proFIts in €‘000 2013 2012

Current tax expense –24,724 –10,182tax provision cost (-)/income (+) 6,976 770

Taxes on earnings and profit –17,748 –9,412

the taxes on income include the individual group companies on the basis of calculated taxable results

from current income taxes, income tax corrections for previous years and changes to the tax provisions.

30 InCoMe FroM FInanCIaL assets – HeLD to MaturItY in €‘000 2013 2012

Profit arising from financial assets – held to maturity –23 –3,757

Profit arising from financial assets – held to maturity –23 –3,757

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31a taX: reConCILIatIon CaLCuLatIon in €‘000 2013 2012

Annual net profit before tax 82,116 70,095Calculated tax expense –20,529 –17,524tax reduction due to tax-exempt revenue from holdings and other tax-exempt revenues 1,404 967

tax increase from non-deductible expenses –512 –54other 5,900 –1,510tax expense for other periods –9,231 3,241tax exemption at-equity revenues 5,220 5,468

Taxes on earnings and profit –17,748 –9,412

32 earnInGs per sHare (CoMMon anD preFerenCe sHares) 2013 2012

equities (ordinary and preference shares) 25,000,000 25,000,000Average float (ordinary and preference shares) 24,971,930 24,920,236Group net profit for the year in €‘000 64,368 60,683

eps (earnings per share) in € 2.58 2.44Diluted earnings per share in € (ordinary and preference shares) 2.58 2.44Dividend per share in € 0.30 0.30

the diluted earnings per share are the same as the un-diluted earnings per share as no financial instruments with diluting effect were issued. these means that

there is no difference between the values “earnings per share” and “diluted earnings per share”.

33 appLICatIon oF proFIts

The distributable profits are determined from the financial statements of BTV AG. The net earnings for the financial year 2013 amounted to €15,167,000 (pre-vious year: €20,663,000). after increase of reserves of €43,600,000 (previous year: €13,100,000) and adding back the profits carried forward there is an available sum of €7,619,000 (previous year: €7,599,000).

the Board of Directors will recommend to the annual General Meeting that for the financial year 2012 a dividend of €0.30 per share (previous year: €0.30) be paid out. the payment requires therefore a total of €7,500,000 (previous year: €7,500,000). the remaining profit is to be carried forward as per Section 65 para 5 of the shares act (Aktiengesetz).

the position ‚other‘ comprises essentially the tax assessment and tax reductions from the leasing busi-

ness. the ‚tax expenses not relating to the period‘ contains taxes on income from previous periods


34 seGMent reportInG

segment reporting is provided by BtV Group as required by the information and valuation rules of IFrs accounting. segment information is based on what is known as the “Management approach”. this requires segment information to be presented ac-cording to internal reporting as it is regularly used by the company‘s key decision-makers for decisions on allocation of resources to the segments and to assess their performance. the qualitative and quantitative thresholds defined in IFRS 8 are met by this segment reporting.

the business areas are managed as independent businesses with their own capital and p&L respon-sibility. segment reporting is based on internal divisional accounting, which reflects the structure of management responsibilities within BtV in 2013. these internal reports are supplied monthly to the Board of Directors and are almost totally automated by preparatory systems and automatic interfaces. this guarantees that up-to-date data is used for both internal and external reporting as the information in accounting uses the same base data and information is agreed for the reports between Controlling and the accounting and reporting departments. this also means that there is mutual checking by the two teams.

the criterion for the separation of business areas is primarily the responsibility for looking after clients. Changes in this responsibility can also lead to changes in attribution to a segment during the course of a year. the effects of this must be taken into account when comparing with unadjusted previous years‘ values.

In 2013, the following business areas are defined within BtV:the corporate client business area is responsible for small, medium and large business clients, and tax consultants. In addition, the leasing subsidiary‘s business is wholly allocated to this area.the retail client business area is responsible for the retail clients, freelance professionals and micro-companies market segments. the institutional cli-ents and banks division mainly shows the treasury and trading activities as well as BtV‘s investment income.

alongside these three business areas, as part of the segment reporting there is a ‚other‘ heading. the ‚other‘ item includes the results from central cost centres providing services across BtV, such as Finance and Controlling, Legal and Investments, Marketing and Communication, Group auditing etc. In addition the effects of consolidation are as-signed to this segment.

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Corporate client segmentthe operating interest income has been the main driver of growth in the corporate client segment dur-ing 2013. The increased average volume in the financ-ing business and expanded margins lead to an increase in net interest income compared to the previous year by €12.6 million or 12.9% to €110.0 million.

another factor determining income is the established risk provision: In comparison with 2012, this increased predominantly because of newly allocated portfolio valuation adjustments by € 9.5 million to €41.2 million.

Compared to the previous year, net commission income in the corporate customer segment grew moderately by € 0.1 million to €17.4 million. this increase is primarily due to increased income from the payment transaction segment. Consequently, in this segment 38% (previous year: 41%) of the overall commission income at BtV is generated.

operating expenses at €37.5 million were €1.6 million above the 2012 value. Other operating profit amount-ed to €2.1 million (previous year: €2.5 million).

In total, this lead to an annual profit before tax in-crease by €1.2 million to € 50.9 million outperform-ing the previous year‘s value by 2.4%. after tax the income increased by €0.2 million to €37.5 million.

the segment loans grew due to robust new business by €72 million to €5,171 million. the segment liabili-ties increased from €1,553 million to €1,641 million.

the cost/income ratio fell pleasingly to 29.4%. the return on equity increased to 15.0%.

CHanGe In net operatInG Interest InCoMe For Corporate CustoMer seGMent 2009 - 2013

operating net interest income

0.0

120.0


40.0

92.080.0

2009 2010 2011 2012 2013

86.079.2

97.4

110.0


retail client segmentprivate client business forms the second pillar of BtV‘s business success.

Here the reduced volume in client receivables is put-ting pressure on interest income. During the course of 2013, operating interest income managed neverthe-less to improve at €37.7 million by €1.0 million or 2.7% compared to the previous year.

What was pleasing was the trend in commission income which represents the second important element in retail earnings in the commission busi-ness: at €27.4 million, the balance was €2.9 million or 11.9% higher compared to the previous year, primarily driven by the robust securities business.

the retail client segment is typically highly cost intensive because of the high staff and premises re-sources required. However, this segment was able to keep its costs under control: operating expenses rose during the course of 2013 by €0.6 million or 1.3% to €48.6 million. In addition, loan-loss provi-sions for credit transactions remained under con-trol - they increased by €0.3 million to €5.8 million.

Pre-tax profit for this segment increased overall by €3.0 million or 35.5% to €11.3 million. after tax, the surplus increased from €6.3 million to €8.5 million.

the segment liabilities fell by €84 million to €1,387 million despite the robust new business due to high amortisations. the liabilities for the segment fell from €2,289 million to €2,185 million.

Return on equity improved significantly from 12.5% to 20.5%. the cost/income ratio is now 74.7% (previous year: 78.4%).

CHanGe In operatInG eXpenses For tHe prIVate CLIent seGMent 2009 - 2013

operating expenses

0.0

40.0

60.0


20.0

48.6

2009 2010 2011 2012 2013

47.751.1

48.0 48.6

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Institutional Clients and Banks segment the segment Institutional Clients and Banks had a very good financial year 2013 whereby the an-nual profit before tax in this segment increased by €8.0 million or 32.7% to €32.5 million.

the main reason for this pleasing development was the result from financial assets. At € 5.3 million, the overall figure was €9.8 million above the previous year.

the net interest income in the Institutional Clients and Banks division by contrast fell in comparison with the previous year from €.4.6 million to €3.4 million. the interest curve in comparison with the previous year did not allow for any increase in return from interest rate structure business.

the success from at-equity valued companies tapered off due to investment income from the scope of con-solidation by €1.0 million to € 24.5 million.

Loan-loss provisions in the credit business fell by €2.9 million during the course of the year. Fallen trading profit had a negative impact on the business success of the segment (-€2.2 million to €1.0 mil-lion), nevertheless the Group net profit for the year after tax increased overall by €5.7 million or 22.8 % to €30.9 million.

CHanGe In traDInG InCoMe seGMent InstItutIonaL CLIents anD BanKs 2009–2013

trading income

0.0

2.0

5.0


1.0

0.6

4.0

3.0

Miscellaneous segmentalongside these three business areas under the item “Miscellaneous” the results from central cost centres providing services across BtV, such as Finance & Controlling, Legal and Investments,

Marketing & Communication, Group audit, etc. are reported. In addition the effects of consolidation and in other corporate profit the Austrian stability tax are assigned to this segment.

2009 2010 2011 2012 2013

2.8

4.5

3.2

1.0


seGMent reportInG in €‘000

Year Corporate clients

retail clients

Institutional clients and

banks

other total

net interest income 20132012

110,04797,440

37,74936,772

3,3894,556

00

151,185138,768

Income from at-equity valued companies

20132012

00

00

24,52425,525

00

24,52425,525

Loan-loss provisions in the credit business

20132012

–41,183–31,674

–5,756–5,473

55–2,795

00

–46,884–39,942

net commission income 20132012

17,36617,261

27,39424,472

519577

00

45,27942,310

trading income 20132012

00

00

1,0013,212

00

1,0013,212

operating expenses 20132012

–37,499–35,868

–48,639–48,003

–2,310–2,224

–7,579–6,742

–96,027–92,837

Other operating profit 20132012

2,1222,496

596604

–32132

–4,958–5,655

–2,272–2,423

Profit arising from financial assets 20132012

00

00

5,310–4,518

00

5,310–4,518

Annual net profit before tax 20132012

50,85349,655

11,3448,372

32,45524,465

–12,536–12,397

82,11670,095

Taxes on earnings and profit 20132012

–13,381–12,410

–2,836–2,093

–1,595669

644,422

–17,748–9,412

Group net profit for the year 20132012

37,47237,245

8,5086,279

30,86025,134

–12,472–7,975

64,36860,683

segment loans 20132012

5,170,7305,098,599

1,386,7691,471,017

2,368,0112,409,247

00

8,925,5108,978,863

segment liabilities 20132012

1,641,3351,553,374

2,185,2482,288,598

4,663,4654,584,342

00

8,490,0488,426,314

Ø assessment basis under section 22 BWG

20132012

4,232,3484,194,988

693,210839,815

680,753776,452

52,10060,146

5,658,4115,871,401

Ø allocated equity 20132012

338,588335,599

55,45767,185

54,46062,116

430,790341,557

879,295806,457

Cost/Income ratio in % 20132012

29.4%31.3%

74.7%78.4%

7.8%6.6%

43.3%44.2%

RoE (based on annual profit before tax) in %

20132012

15.0%14.8%

20.5%12.5%

59.6%39.4%

9.3%8.7%

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the net interest income is allocated according to the market interest method. Costs are imputed to the correct segment on the basis of origin. Costs not directly imputable are shown under “other”.

the segment receivables include the entries for loans and advances to banks, loans and advances to clients, trading assets and all fixed-interest securities, guaran-tees and liabilities. the entries for liabilities to banks, liabilities to clients, trading liabilities, securitised debt, trading liabilities and subordinated capital are allocated to the liabilities segment.

The success of the business field concerned is measured by the before-tax annual net profit gen-erated by that segment.

the return on equity is calculated by the ratio of the annual net profit before tax to equity. The capital allocation is made according to regulatory requirements. the equity is allocated in proportion to the equity requirements of the business areas, and shown in the net interest income as profit from equity deployed with the corresponding reference interest rate for long-term deployments.

the cost/income ratio is worked out as a quotient arising from the administrative expenditure and the sum arising from the net interest income including the income of at-equity valued companies, the net com-mission income and the trading income.

the presentation and valuation methods of the segments for which reporting is mandatory corre-spond to the presentation guidelines for the group financial statements described in the Notes.


35 rIsK reportInG

as part of the risk report, a qualitative and quan-titative disclosure is made of the ICaap (Internal Capital adequacy assessment process) at BtV. this disclosure includes the global banking level as well as the individual risk categories.

BtV‘s risk categories were determined as follows:

BTV‘s global bank risk is defined as the sum of credit, market, liquidity, operational, macroeconomic and other risks. this states the likelihood of BtV continu-ing to be in a position to meet the risk capability requirements within a foreseeable time horizon. For this, the quantified risk is compared to the capital available for risk-covering and the defined limit.

Within BtV, risk is understood to mean the risk of a negative divergence from an expected result. the conscious and selective assumption of risks and their appropriate management represents a core banking function and hence a core function of BtV too. the aim is to achieve a balanced ratio between risk and profit, in order to make a sustainable contribution to the positive development of the company.

Because of the operational necessity of being able to continue to meet the risk capability requirement and to maintain a balance between risk and profit, BTV has developed a risk strategy. this risk strategy is char-acterised by a conservative approach to operational banking risks, resulting from the demands of a client-oriented focus in banking business and the attitude towards the legal requirements.

therefore a control loop has been implemented within BtV, which ensures that all risks within the group are identified, quantified, aggregated and actively managed. The individual risk definitions and management mechanisms applied as part of this control circuit are described in detail below.

Credit riskat BtV credit risk is broken down as follows:

• risk of default by other party• equity investment risk• Credit concentration risk• risks from credit risk reducing techniques

the securitisation risk is of no relevance, since BtV has no securitisation positions in its asset portfolio.

risk of default by other partyunder this heading BtV looks at the total or partial default of a counterparty and the resultant loss of the income due or loss of the capital invested. particular importance is attached to the monitor-ing of party default risk, being the most important type of risk for BtV.

Management of counterparty default risk the credit management department is responsible for risk management of its loan book as well as for assess-ing the creditworthiness of clients. this department is also responsible for overall management, restructuring management, management of loan commitments in default, drawing up of financial statements and com-pany analyses, as well as collection and evaluation of sector information. Knowing our customers well is par-ticularly important for BTV. This is reflected strongly in the loan management area. regular meetings between the customers and credit managers from BtV are just as self-evident as at least annual borrower reviews.

rIsK CapaBILItY

Credit riskrisk of default by other partyequity investment riskCredit concentration riskrisks from credit risk reducing techniques

Market riskrisk of a change in interest rates Currency riskshare price riskCredit spread risk

Liquidity riskoperational riskMacroeconomic riskother risks

strategic riskreputation riskCapital riskProfit or business riskModel risk

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The main defined goals for the management of the borrower‘s default risk have been defined as the long-term optimisation of the lending business with regard to the risk/return ratio, and in the short term, the achievement of the credit risk objectives budgeted for in the individual client segments. at individual level, risk management techniques include assessment of creditworthiness when granting loans, the accept-ance of collateral, ongoing monitoring of account management and scheduled reviews of ratings and the soundness of collateral. Loan loss provision is carefully formed, taking into consideration existing collateral, for default risks identified and quantified during the financial year.

Businesses with concessions Here, it concerns transactions in which the borrow-er, who has been under financial pressure has been given through one or more measures the opportu-nity to pay off his liabilities within the framework of his current economic situation. as soon as one transaction of a client qualifies as a transaction with a concession, all of the client‘s transactions receive the same status.

types of concessionsDepending on the measures taken, the following types of concessions are distinguished at BtV:

Concessions concerning capital repayment:• the credit period is extended.• arrears are capitalised.• redemption payments are temporarily put on hold.• Loans are waived in part or as a whole.• repayment vehicles are temporarily put on hold.• Loans due for repayment are converted into

amortising loans.

Concessions concerning the interest payments to be made:• Interest payments are temporarily put on hold.• Favourable rates of interest are agreed in order

to reduce the burden of interest.

other types of concessions:• Complying with binding obligations (covenants)

on the part of the borrower is temporarily relaxed.• securities are released.• additional borrowers are adopted into the credit

relationship.

the measures listed are applied in both an indi-vidual as well as combined way.

risksall of the measures mentioned above generally re-duce the risk of the borrower defaulting. If however the agreements made are not adhered to on the part of the client, there is the risk of a reduced quo-ta of collectability due to the delay of the default or the delay in a possible termination of the loan.

risk management and risk controlthe internal regulations of BtV provide that con-cessions are only to be granted if, on the basis of the available data, documents and information, a proper repayment is ensured. the approval is made through the decision-making channels. the agreements made with the borrower are always to be documented in writing. If there is interference in existing contracts, the changed or new contracts have to be agreed to by the borrower as well as all the co-borrowers and issuers of securities.

the control is carried out by the credit manage-ment department by means of existing control systems such as, for instance, lists for overdrafts and credit limits. other agreements made with the client are controlled separately through the relevant responsible person for the market.

accounting policies and valuation methodsConcessions to borrowers fundamentally do not lead directly to a loan loss provision, a reserve or a derecognition of the receivable.

If the agreed measures are not complied with, the client is submitted to a renewed and timely credit check. Within the context of this check, a change of the borrower‘s rating to default as well as the formation of a loan loss provision or a reserve will be evaluated.


If, within a credit commitment, a credit default is to be expected, a loan loss provision or a reserve is created for the part that is probably not recoverable.

Depending on the specific degree of knowledge or also the expectations regarding the point in time of the potential default, BtV gradually builds up the loan loss provision or the reserve. At the first stage, however on a regular basis risk provision takes place to the extent of at least 30% of the expected default.

Generally, entire or partial write-offs of claims take place only with clients who have already defaulted and after assessment through the reorganisation man-agement. Provided a borrower in a difficult financial position can cover a proportion of his obligations, in individual cases a release of existing claims can take place also for clients who have not defaulted.

probation period after the agreed concessions formally come into effect, a three-month observation period starts. provided the agreements that were made are complied with during the observation period, the borrower is then managed as a client with conces-sions on probation. this status remains for two years. after the two years‘ probationary period has been completed and all of the criteria listed below have been cumulatively fulfilled, the client is again managed as a client without concessions:

• the client is within the living rating area.• according to the assessment of the commercial

situation, the borrower can repay the claims.• Within the probationary period, the payment

obligations are fulfilled properly.• Currently, the total position of the borrower is

less than 30 days overdue.

equity investment riskequity investment risks (shareholder risks) are de-fined within BTV as the potential losses from equity furnished, non-payment of dividends, partial write-downs, losses on disposals, reduction of hidden reserves, liability risks (e.g. g. letters of comfort), or profit transfer agreements (assumption of losses).

Credit concentration riskWithin BTV, credit risk concentration is defined as the risks which arise from un uneven distribution of busi-ness partners in loan or other business relationships, the formation of geographical or sector-specific busi-ness clusters and foreign currency financing or other concentrations, which may generate losses that are large enough to threaten BtV‘s continued existence.

risks from credit risk reducing techniquesthis is understood to mean the risk that the credit risk reducing techniques implemented by BtV are less effective than expected.

Market riskunder market risk BtV understands the potential loss which can arise due to changes in prices and interest rates in financial markets for all the posi-tions of the bank and its trading book. the market risk is made up of interest risk, currency risk, share price risk and credit-spread risk types.

Control of market risksManagement of market risks is undertaken centrally in the Institutional Clients and Banks business area of BtV. Both the periodical and net asset value effects of asset/liability management are taken into considera-tion to this end. as central auxiliary conditions, the impacts of the management measures on invoicing according to IFrs and uGB and the clauses relating to supervisory law are taken into consideration.

At BTV, management measures include the identifica-tion of commitment incongruities and their adjust-ment, the ongoing monitoring of credit spreads in the security nostro, the assurance of the effectiveness of hedge relationships, the separation of income compo-nents using a transfer price system and the assurance of risk-bearing ability at all times. Interest rate riskInterest rate risk has a twofold impact. on the one hand there is the risk of reduced net asset values due to the changes of market rates in the interest register. on the other hand, there is a risk that the expected interest revenue will not be achieved due to a change in interest rates.

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types of interest rate riskWithin BtV, the different forms of interest rate risk are broken down as follows:

• Interest rate adjustment risk: this risk arises from setting of interest rates, which can lead to inconsistencies in the fixed interest rates and a potential reduction in the net interest margin.

• Interest curve risk: this risk arises from changes in the yield curve (position, steepness, convex-ity), which on the one hand affect the net present value of interest rate-sensitive positions, and on the other hand influence the structural contribu-tion to the net interest margin.

• Basis risk: this risk arises from the different rate sensitivities of asset and liability positions to interest rate movements.

• non-linear risks from derivative positions and embedded options.

While the first three categories of interest risk arise from traditional banking activity and are moni-tored, the fourth type of risk mainly arises in the case of transactions involving options.

Currency riskBTV defines currency risk as the danger that the profit which is obtained from transactions which require conversion from one currency to another, deviates negatively from the expected result.

share price riskWithin BtV, share price risk is understood to be price fluctuations in equities and equity funds.

Credit spread riskthe credit spread represents a risk premium for investments which include loan and liquidity risks. The credit spread is defined as the difference in re-turns from an asset and a risk-free reference bond. Credit spread risk in BTV is reflected in fluctuations in the net value of bond portfolios, which cannot be attributed to interest rate changes.

Liquidity riskWithin liquidity risk, BtV distinguishes between liquidity risk in the narrower and in the broader sense.

Liquidity risk in the narrower sense (insolvency risk or funding liquidity risk) is defined as the danger that BtV is no longer able to meet its current and future payment liabilities either in full or by the established deadlines. this can occur due to short-term liquidity bottle-necks such as e. g. delayed arrival of expected payments, unexpected withdrawal of deposits and drawdowns on approved lines of credit.

Within BtV, liquidity risk in the narrower sense essen-tially consists of management of the following risks:

• Due date risk as the risk of an unscheduled extension to the capital commitment period of lending operations due to behaviour which is not contractually compliant.

• Withdrawal risk, which is the danger arising from unexpected drawdown of lending commitments or the unexpected withdrawal of deposits.

Liquidity risk in the broader sense essentially is risk within the structural liquidity, and describes the effects on earnings of sub-optimal availability of liquidity. Within BtV, this category is a part of the management of assets and liabilities and consists of refinancing risk and market liquidity risk:

• Refinancing risk is the danger that additional refinancing can only be obtained at higher mar-ket interest rates. this describes the situations in which only insufficient liquidity can be obtained under the expected conditions. the maturity mismatches which are deliberately contracted from the point of view of profitability, entail the danger that purchasing conditions will become more expensive. this situation can arise either due to disturbance in the interbank market or due to a reduction in the credit rating of BtV. on the basis of the money-at-risk approach, this risk thus corresponds to the costs which would have to be borne by the bank in the event of an unspecified negative scenario occurring, in order to exclude this risk, i.e. in order to close out the existing maturity mismatches (sale of realisable assets or assumption of long-term refinancing).

• Market liquidity risk is the danger, contingent on extraordinary events, that assets may only be realised at discounts in the market.


Management of liquidity riskBtV‘s liquidity risk management is used to guaran-tee adequate liquidity at all times, so that the bank is able to meet its payment liabilities.

the Institutional Clients and Banks department is responsible for short-term liquidity risk manage-ment. the primary task of short-term liquidity risk management is to identify and manage the option-al liquidity risk position. this management is based on an analysis of daily payments and the planning of expected cash flows, as well as demand-related money market trading, taking into account the liquidity buffer and access to central bank facilities.

Monitoring of the long-term liquidity risk is carried out by BtV bank management and consists of the following points:

• Optimisation of the refinancing structure with minimisation of refinancing costs

• Sufficient provision of primary funds• Diversification of sources of refinancing• optimisation of the liquidity buffer• Clear investment strategy for tenderable securi-

ties on the bank‘s books• Compliance with legal supervisory regulations in

association with the regulations of the Banking act, the Liquidity Management ordinance and with the Basel III guidelines

operational riskOperational risk is defined as the danger of losses due to the failure of internal processes, procedures, systems and individuals, or as a result of external events. This definition includes legal risk, but ex-cludes strategic risk and reputation risk.

In principle, unlike market and credit risks, opera-tional risks are not dependent on profit. This means that there is no risk/return relationship.

Macroeconomic riskrisk are described as macroeconomic risks if they result from unfavourable changes in the economic development as a whole in the markets in which BtV transacts business.

These risks lie outside the sphere of influence of BtV, the sensitivity of client groups, sectors and

markets versus negative economic changes as a whole is however expresses itself to different degrees and is taken into account in the direction of the business. From this perspective, an internal closeness to the strategic risks is also the case.

other risksBtV understands “other risks” to cover the following types of risk:

• strategic risk• reputation risk• Capital risk• Profit or business risk• Model risk

BTV defines these types of risk as follows:

as far as BtV is concerned, strategic risk arises from the negative effects on equity and revenue of business policy decisions, changes in the economic environment, failure to implement or inadequate implementation of decisions or a failure to adapt to changes in the economic environment.

reputation risk describes the negative consequences which may arise from a negative divergence in BtV‘s reputation from the expected level. reputation is un-derstood to be the standing of BtV with regard to its competence, integrity and trustworthiness resulting from the perceptions of public stakeholders (share-holders, employees, customers, etc.).

Capital risk arises from the inadequate availability of risk cover capital.

the earnings and business risk arises from inad-equate diversification of the earnings structure or from the inability to achieve an adequate and last-ing level of profitability.

the model risk is the risk that a model generates incorrect results and therefore incorrect steering impulses are given. the production of incorrect results can be due to the fact that the model was incorrectly designed, or is unsuitable for the se-lected application. the model may also have been used incorrectly, or the incorrect input data were used for a model. It is also possible that a model is no longer valid or is inconsistent.

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the central responsibility for risk management lies with all the Directors. It decides on risk policy, approves the basic principles of risk management, determines limits for all of the relevant risks for BtV and defines the procedures for risk monitoring. The central steering committees are the apM meeting and the BtV Bank Management.

Within the framework of risk management, the supervisory board of BtV has the responsibility for monitoring the risk management system. the reali-sation of this supervisory role is essentially carried out through the reports listed below: • risk reporting of the Group Management Board

within the framework of the preparing sessions of the auditing committee and within the ple-num of the supervisory Board.

• annual ICaap report to the audit committee• on-going reports by the Group audit to the au-

dits undertaken with different areas of emphasis• annual report of the auditor about the functional

capacity of the risk management system to the Chairman of the supervisory Board

at present the apM meeting is held on a monthly basis, one week before the BtV Bank Management. It comprises the divisional board members and the heads of the business areas Institutional Clients and Banks as well as Finance and Controlling. the main responsibility of the apM meeting includes decisions with regard to investment activities in the bank register, the development of hedging strate-gies as well as the analysis of the interest income components. Furthermore, a thorough analysis of the liquidity situation as well as BTV‘s refinancing costs takes place.

at present the BtV Bank Management meets monthly. It consists of the Group Board of Directors and the heads of Finance and Controlling, Credit Management as well as Corporate Clients and private Clients and/or Institutional Clients and Banks. the Controlling team leader is responsible for chairing this meeting. the principal responsibility of BtV Bank Management cov-ers management of the balance sheet structure from the perspective of risk/return, as well as management of credit, market, liquidity risk as well as operational and macroeconomic risk. strategic, reputation, capital

and business risk, as well as model risks are combined in the “other risks” risk category and are also discussed within the context of BtV Bank Management.

risk Controlling is responsible for providing independent and neutral reporting of risks within BtV for management and guidance decisions. the core tasks of risk Controlling are the measure-ment, analysis, monitoring and reporting of risks, as well as advising managers within the corporate divisions and processes. through these core tasks, risk Controlling provides an important supportive business management service to the management for risk-oriented planning and management.

as an autonomous supervisory body, BtV‘s group audit audits the effectiveness and appropriateness of overall risk management and thereby also sup-plements the role of representatives of regulatory bodies and owners.

the compliance function monitors all legal regula-tions and internal guidelines relating to financial services according to the securities supervision act (WaG). the supervision of employee and customer transactions is intended to secure confidence in the capital markets, whereby compliance contributes directly to the protection of the reputation of BtV.

the anti-money laundering department has the task of preventing money laundering and financing of terror-ism within BtV. on the basis of the legally prescribed risk analysis, measures and guidelines are defined to prevent the channelling of illegally obtained assets into the legal financial system. In case of evidence of money laundering or the financing of terrorism, the money laundering officer must inform the Federal Ministry of the Interior. Both the compliance function and the money laundering officer report directly to the full Board of Directors.

Within BtV, the functions of risk control, group audit and the compliance/money laundering func-tion are organised so as to be independent of each other. this guarantees that these organisational units can execute their tasks in an appropriate manner within the framework of an effective inter-nal control system.

structure and organisation of risk management


the requirements which apply to a quantitative risk management system, which arise from the 2nd pillar (ICaap) of Basel II and Basel III as well as from com-mercial needs, are covered within BtV mainly by the risk capacity calculation. With the help of this calcula-tion, BtV determines the extent to which it is able to absorb unexpected losses.

In calculating risk capacity, BtV assumes two view-points - the going concern and the perspective of liquidation. From the perspective of a going concern, the continued existence of a regular ongoing concern is to be assured. Furthermore, BtV has built an early warning stage into its going-concern approach. the aim of the protection at the early warning stage is to be able to ensure that smaller, high-probability risks can be absorbed, without needing to change the type and extent of business activity, or the risk strategy. Furthermore, triggering of the early warning stage has the effect of implementing corresponding measures. From the liquidation point of view, the BtV protection aim is to secure the claims of outside financial backers

(e.g. holders of bonds, savings deposits, etc.). the determination of the risk and the risk cover capital is carried out by various methods, using the going-concern and liquidation approach. this occurs against the background of the differing protection aims of the two approaches. the risk capacity requirement must be fulfilled for both approaches in a normal as well as a stress situation.

In the liquidation approach, qualifying equity is essentially defined as internal capital (risk cover capital). In the going-concern approach, the risk cover capital essentially consists of the expected net profits for the financial year, the hidden reserves and the core capital surplus. at BtV, the core income capital is defined as the surplus of core capital beyond the internally defined minimum core capital ratio.

In order to measure the risks within the context of ICaap, the following processes and parameters are applied:

risk measurement procedures

Interest rate rIsK LIQuIDatIon approaCH GoInG-ConCern approaCH

Confidence interval 99.9% 95.0%probability horizon 250 days 30/250 daysInternal capital (risk cover capital)

in a broader sense qualifying equity

expected annual net profit, hidden reserves and core

capital surplusCredit risk risk of default by other party IrB approach equity investment risk IrB-pD/LGD approach Credit concentration risk IrB Granularity adjustmentMarket risk Diversification across market risks considered Interest rate risk Var (historical simulation) Currency risk Var (historical simulation) share price risk Var (historical simulation) Credit spread risk Var (historical simulation)Liquidity risk structural liquidity risk

(GuV risk)structural liquidity risk

(Cash value risk)operational risk standard approach Var approachMacroeconomic risk Macroeconomic risk

extreme scenarioMacroeconomic risk

extreme scenarioother risks 10% buffer 10% buffer

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Furthermore, limits are defined for each risk category (credit, investment, credit concentration, market, liquidity, operational and macroeconomic risk) in total, as well as for controlling units (corporate clients, private clients, institutional clients and banks) within the credit risk and for detailed risk categories within market risk. The other risks which are not quantifiable are taken into account by means of a buffer in the risk bearing capacity calculation.

Credit riskBtV uses the IrB basic approach to quantify the counterparty default and the investment risk in the risk-bearing capacity calculation.

the probability of default represents the central parameter for calculating credit risk in this ap-proach. this is derived from internal bank ratings. For corporate and retail clients, as well as for banks and property project financing, rating systems are used which spread the credit risks over a scale with 13 available levels. the rating forms the basis for the calculation of credit risks and provides the framework for a risk-based calculation of terms, as well as for the early identification of problem cases. the price calculation in the lending business is based on this and is carried out taking into consid-eration ratings-based risk premiums.

the risk from high credit volumes is integrated into ICaap at BtV in two respects:

• Model to quantify the risk from high credit volumes (IrB Granularity adjustment)

• stress test to analyse the risk in relation to high credit volumes

With regards to risks from credit risk reducing tech-niques as well as credit concentration risks, which are not related to high credit volumes with individ-ual clients or commercial entities, no quantifying of the risk takes place. they are considered within the buffer of the risk bearing capacity.

the management of credit risk at portfolio level is primarily based on internal ratings, classes by size, sec-tors, currencies and countries. Besides the risk bearing capacity calculation, the credit risk reporting system and here above all, the continually produced BtV credit risk report, represent a central management and monitoring instrument for decision makers.

Market riskFor risk measurement purposes at the overall bank level, BTV quantifies the value-at-risk for the risk categories of interest, currency, share price and credit spread risk with regard to the liquidation ap-proach, on the basis of a confidence level of 99.9% and a retention period of 250 days. the value at risk (Var) is the loss which on the basis of a given prob-ability, will not be exceeded over a defined period.

Value at risk is calculated on the basis of a his-toric simulation method. the basis for the market parameters used are historical time series from the last 3 years. Diversification effects between the individual market risk classes are already implicitly included in the data histories and are accounted for separately.

Interest rate riskIn the context of the ICaap, the risk capital is com-pared with the potential risk according to the Var model, and is therefore limited.

BtV’s interest risk is herewith also part of report-ing in the course of the management of assets and liabilities. a basis point value limit is used for each maturation band. the basis point value is the change in value of the interest portfolio which results from an increase of the interest by one basis point. However, as the interest scenario in the Var model includes a change in the interest rate of several basis points, the scenario is also used in the basis point value limitation. this ensures the op-erational implementation of the Var limit from the ICaap in the management of the interest register.

the basis for this is the entire interest-sensitive BtV portfolio, which is shown in the interest rate gap analysis. In the gap analysis, all BtV‘s interest-rate sensitive assets and liabilities and derivative transactions are compared on the basis of report-ing dates and the maturity structure broken down into periods.

Currency riskthe quantifying of the foreign currency risk is also carried out on the basis of a historical value-at-risk ap-proach. the measurement of the foreign currency risk at overall bank level is carried out on a monthly basis in the course of drafting of the ICaap.


share price riskthe quantifying of the share price risk is carried out on the basis of a historical value-at-risk approach. In which individual shares are directly assigned to the respective rate histories. share price risk at overall bank level is measured on a monthly basis.

Credit spread riskthe quantifying of the credit spread risk is carried out on the basis of a historical value-at-risk approach. the credit default swap spread serves as a basis for calculating the credit spreads per issuer. In the case of non-tradable credit default swaps, the asset value is allocated to a CDs sector. the credit spread risks are measured on a monthly basis.

Liquidity riskthe measurement of liquidity risks begins with the drawing up of a liquidity maturity statement, in which all balance sheet, off-balance sheet and derivative transactions are classified by maturity intervals. For positions with an indeterminate capital commitment, care is taken to ensure that the liquidity assumptions correspond as closely as possible to actual client behaviour. For this purpose maturity profiles are estimated based on historical data and using statistical methods. In ad-dition assumptions are modelled for the drawdown on unused credit and the take-up of guarantees. securities and credits suitable for central banks within the liquidity buffer (under consideration of a relevant haircut) are treated as assets that can be liquidated at any time.

For the determination of the liquidity risk, the risk premiums of a pool of reference banks are ana-lysed in comparison with best-rated government bonds and the volatilities for the individual maturi-ties are calculated on the basis of the fluctuations in these premiums. the multiplication of these credit spread volatilities with the cumulative liquid-ity gaps gives the liquidity risk over the period.

the drivers of the risk are therefore the amount and the distribution of the liquidity gaps as well as the fluctuations in the risk premiums in the individual terms.

alongside the integration of the liquidity risk as a risk to earnings in ICaap, the liquidity risk situation at group level is monitored daily. For this the net fi-nancing gap (capital inflows minus capital outflows plus liquidity buffer) is assigned limits which are time-dependent, which influences the medium-term liquidity requirement. the cumulative net financing gap indicates from what moment in time the liquidity buffer is exhausted by the net capital outflows. And dependencies on large capital sup-pliers (whether in the banking or in the customer area) are shown in the liquidity report and confined by applying the limits.

operational riskIn BtV a risk management process has been devel-oped, which applies both for qualitative and quan-titative methods. For losses which have already oc-curred, a loss database exists which collects details of all cases of losses. after analysis of the losses, suitable measures are taken to minimise the risk of loss in future. this approach is complemented by the implementation of self-assessments where all areas and processes are checked for possible operational risks. these risks are assessed through interviews, and if necessary, internal processes and systems are then adapted.

under the liquidation approach the operational risk is measured using the standard approach. In the going-concern approach, the 95% confidence interval of the previously sustained losses in the loss database are used.

Macroeconomic riskthe macro-economic risk manifests itself in the negative change for BtV within the market envi-ronment and its implications for the significant risk drivers. Consequently, the quantifying takes place by means of a macroeconomic stress test which contains the significant changes in the parameters of an economic downturn. Herein the maintaining of the risk-bearing capacity in the case of stress is now calculated implicitly.

other risksother risks are considered within the risk capacity calculation through the buffer.

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the following explanations relate to the extent and type of BtV‘s risk reporting system.

the measurement of overall bank risk and of indi-vidual risk categories is carried out on a monthly basis. the short-term liquidity risk as well as the individual market risks in the trading book are measured daily. Operational risk is quantified on an annual basis. In addition, an ad hoc report is drawn up in so far as this is necessary. Within BtV Bank Management, a report

is given on the current utilisation levels and limiting of overall bank risk, as well as of the individual risk categories, together with definition and monitoring of control measures.

BtV is subject to an internal limit on utilisation of overall risk as a percentage of risk cover capital of 90%, with this amounting at year-end to 65.4 (€ 666.4 million). the highest level of usage was in July 2013.

risk reporting system

the above presentation is essentially character-ised by the changes to the design of the ICaap which was taken into consideration in June this year for the first time. The new legal supervisory regulations were hereby implemented and the quantifying of the risks extended by the credit

concentration risk, the credit spread risk and the macroeconomic risk. at the same time, due to the consideration of these additional risk categories in the quantifying, the buffer for other risks was reduced to 10% of the risk cover capital.

total bank risk - liquidation approach

totaL BanK rIsK - LIQuIDatIon approaCH Maximum average Year-end

utilisation in € million 679.9 610.2 666.4utilisation in % of risk cover capital 67.6% 61.8% 65.4%

Jan 13 Feb 13 March 13 april 13 May 13 June 13 July 13 aug 13 sept 13 oct 13 nov 13 Dec 130.0%

30.0%

60.0%

90.0%

0

400

800

1,200

amounts in € million Values in %

Qualifying rCC / absolute limit utilisation in € million

Limit as % of rCC (right-hand scale) utilisation as % of rCC (right-hand scale)

rCC = risk cover capital


Counterparty default - liquidity approach




Credit riskthe illustrations below show the risks in comparison with the allocated risk cover capital and the set limit for the counterparty default and equity investment risk as well as the credit concentration risk.

as can be seen from the illustrations below, the limit in all the partial risk categories of the credit risk was maintained. In addition, a buffer for the applied limit was available at all times.

CounterpartY DeFauLt rIsK - LIQuIDItY approaCH Maximum average Year-end



20.0%

40.0%

0

300

600


60.0%

In June a decline in the use of the counterpart default risk could be recognised. this decline is in relation to the implemented further develop-ment of the core calculations for the quantifying of the credit risk for the purposes of the risk-bearing capacity. this further development resulted in the counterparty default risk and the investment risk

now being viewed separately from one another and no longer being subsumed under the category of credit risk. this also led to a reallocation of the risk cover capital which is set out in the illustration above by means of a reduction of the limit. In the particular case, the limit was reduced measured in % of the risk cover capital from 61.5% to 50.5%.

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InVestMent rIsK - LIQuIDItY approaCH Maximum average Year-end


Investment risk - liquidity approach





1.0%

3.0%

2.0%

4.0%

0

20

10

50

40

30


as already mentioned above a further develop-ment of the core calculations for the quantifying of the credit risk for the purposes of the risk-bearing capacity which led to the fact that the counter-party default risk and investment risk were now viewed separately from one another and were no

longer subsumed under the category of credit risk. set against this background, the measuring and de-scription of the investment risk as its own category within the credit risk began from June 2013. the in-vestment risk is limited with a limit on the amount of 3% of the risk cover capital.


Credit concentration risk – liquidation approach

CreDIt ConCentratIon rIsK – LIQuIDatIon approaCH Maximum average Year-end






1.0%

2.0%

0

10

20

30

40


3.0%

In addition to the further development of the the core calculations for the quantifying of the credit risk for the purposes of the risk-bearing capacity, the development of core calculations for the quan-tifying of the credit concentration risk which exists

in the shape of high credit volumes with individual clients or commercial entities. the measurement of this risk began in June 2013 as well. the credit con-centration risk is limited with a limit in the amount of 2% of the risk cover capital.

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Due date Data no visible risk of default

With comment

High risk of default

problematic total

31 December 2013

total drawn 7,733,160 820,265 104,712 267,373 8,925,510% share 86.6% 9.2% 1.2% 3.0% 100.0%risk provisions 45,889 22,933 11,488 127,475 207,787percentage of cover 0.6% 2.8% 11.0% 47.7% 2.3%

31 December 2012

total drawn 7,687,444 875,466 94,667 321,285 8,978,863share in % 85.6% 9.8% 1.1% 3.6% 100.0%provision for risks 36,203 16,081 7,619 135,696 195,599percentage of cover 0.5% 1.8% 8.0% 42.2% 2.2%

Change in draw down vs. previous year 45,715 –55,201 10,045 –53,912 –53,352drawn down as % of previous year 0.6% -6.3% 10.6% –16.8% –0.6%of loan loss provisions to previous year 9,686 6,853 3,870 –8,220 12,188of loan loss provisions to previous year in % 26.8% 42.6% 50.8% –6.1% 6.2%


With comment


problematic total

31 December 2013


31 December 2012


Change in draw down vs. previous year –11,512 –21,145 1,345 –22,652 –53,964drawn down as % of previous year –0.3% –3.3% 2.3% –10.0% –1.0%of loan loss provisions to previous year 7,623 6,095 2,416 –1,178 14,956of loan loss provisions to previous year in % 47.0% 58.9% 52.9% –1.2% 11.2%

Creditworthiness structure overall in €‘000

Creditworthiness structure, domestic in €‘000

Creditworthiness structure, domestic and Foreignthe presentation is based on the country of origin of the borrower or issuer.

In austria, the overall credit risk volume fell by €54.0 million or 1.0%, relative to the previous year. the international proportion of the credit risk vol-ume increased by €0.6 million.

Credit risk - overview the credit risk volume is made up from the balance sheet items “Loans to credit institutions”, “Loans to customers”, all fixed interest securities as well as secu-rities and guarantees (gross presentation). as required by the guidelines in Ias 39 payment guarantees to development banks and letters of credit are not taken into consideration in the credit risk volume.

the total loan volume of BtV fell year on year by €53.4 million or 0.6% to €8.926 million. the amount of bad debt could be reduced by €53.9 million or 16.8%.


Creditworthiness foreign in €‘000

Creditworthiness structure of credit risk by countryaround 60.7% of the credit risk volume related to do-mestic borrowers. 19.2% is accounted for by German and 6.2% by swiss borrowers. the remaining 14.0 % is distributed as follows: Ireland, Italy, spain and Hun-gary account for 2.0 percentage points. there are cur-rently no receivables owed by Greek and portuguese debtors. the remaining 12.0 % points are distributed between borrowers in the united states, France and other countries.

Countries no visible risk of default

With comment


problematic total share in %

austria 4,524,408 628,343 59,532 204,422 5,416,706 60.7%Germany 1,513,877 129,297 26,202 42,564 1,711,939 19.2%switzerland 478,306 36,532 15,957 19,172 549,968 6.2%usa 192,585 5,914 0 161 198,660 2.2%Italy 146,895 10,007 444 508 157,854 1.8%France 149,896 447 238 0 150,581 1.7%Ireland 13,750 0 0 0 13,750 0.2%Hungary 1,964 0 0 49 2,013 0.0%spain 241 0 0 165 406 0.0%Greece 0 0 0 0 0 0.0%portugal 0 0 0 0 0 0.0%Miscellaneous 711,239 9,724 2,338 332 723,633 8.0%

total 7,733,160 820,265 104,712 267,373 8,925,510 100.0%

Creditworthiness structure by country in €‘000

CHanGe In CountrY struCture CreDIt rIsK in %

2013

austria Germany

switzerland Miscellaneous

2012201120102009

58.1

18.67.6

15.7

58.0

18.48.6

15.0

59.4

18.88.4

13.4

59.4

18.88.4

13.4


With comment


problematic total

31 December 2013


31 December 2012


Change in draw down vs. previous year 57,227 –34,056 8,700 –31,260 611drawn down as % of previous year 1.8% –15.1% 23.8% –33.2% 0.0%of loan loss provisions to previous year 2,063 757 1,454 –7,042 –2,768of loan loss provisions to previous year in % 10.3% 13.2% 47.6% –21.0% –4.4%

60.9

19.0

12.47.7

60.7

19.26.2

13.9

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Creditworthiness by sector of selected countriesthe following table illustrates the volume of receiva-bles owed by debtors in the countries of Italy, Ireland, Hungary, and spain ordered by sectors. there are currently no receivables owed by Greek and portu-guese debtors. against the backdrop of recent trends on the financial markets the loan, insurance and public authority sectors have been highlighted.

accordingly, the loan and insurance sector ac-counts for €55.8 million. the credit risk illustrated for Ireland is essentially accounted for by a us group, the financial services subsidiary of which is headquartered in Ireland.

Creditworthiness structure of credit risk by sectorthe sectoral focus points are like last year in the loan and insurance business, retail clients and production of physical goods. In terms of propor-tional weight these are followed by the property

management, services, public, trade, tourism and construction sectors. the relative share of the other sectors has reduced in comparison with the previ-ous year and is now at 6.5%.

sectors Italy Ireland Hungary spain Greece portugal total

Loans and Insurance

42,153 13,662 1 0 0 0 55,816

public sector 0 0 0 0 0 0 0remaining sectors 115,701 87 2,012 406 0 0 118,206

total 157,854 13,749 2,013 406 0 0 174,022

all sectors together no visible risk of default

With comment



Loans and Insurance 1,679,409 735 50 458 1,680,652 18.8%private 1,085,333 84,127 30,017 66,790 1,266,268 14.2%physical goods manufacture 1,064,595 88,160 4,365 40,735 1,197,854 13.4%property management 825,373 231,659 10,908 15,310 1,083,251 12.1%services 676,920 148,864 20,299 47,992 894,075 10.0%public sector 795,306 156 0 74 795,537 8.9%trade 510,093 38,208 4,861 41,549 594,710 6.7%tourism 330,202 134,132 5,777 29,044 499,156 5.6%Construction 273,089 52,736 2,740 14,891 343,455 3.8%Cable cars 256,891 4,999 0 1,382 263,272 2.9%transport and communications 137,168 21,274 6,451 3,002 167,895 1.9%energy-/Water utilities 62,537 2,789 32 3,887 69,244 0.8%Miscellaneous 36,245 12,425 19,213 2,258 70,141 0.9%

total 7,733,160 820,265 104,712 267,373 8,925,510 100.0%

Creditworthiness structure by sector of selected countries in €‘000

Creditworthiness by sector total in €‘000


Foreign sectors no visible risk of default

With comment



Loans and Insurance 1,253,414 0 16 0 1,253,430 35.7%physical goods manufacture 656,855 33,680 831 10,395 701,762 20.0%private 286,920 21,677 12,426 26,304 347,327 9.9%property management 172,994 73,839 4,940 33 251,807 7.2%public sector 246,192 0 0 74 246,266 7.0%trade 208,457 6,725 987 5,261 221,429 6.3%services 130,860 30,209 13,470 14,167 188,707 5.4%tourism 74,452 17,041 950 1,247 93,690 2.7%Construction 69,926 1,468 0 3,774 75,169 2.1%transport and communications 57,161 2,762 0 1,491 61,414 1.8%energy-/Water utilities 48,887 313 0 0 49,200 1.4%Cable cars 2,514 0 0 0 2,514 0.1%Miscellaneous 119 4,208 11,560 204 16,091 0.5%

total 3,208,751 191,922 45,180 62,951 3,508,804 100.0%

Creditworthiness structure by sector, foreign in €‘000

In comparison with the previous year, relative decline is to be recorded within private clients as well as in the sectors of physical goods manufacture, construction, cable cars as well as transport and communications.

By contrast, the relative share of the credit volumes in the sectors of real estate, services, public sector, trade and tourism increased.

Domestic sectors no visible risk of default

With comment



private 798,413 62,451 17,590 40,486 918,940 17.0%property management 652,379 157,820 5,969 15,277 831,444 15.3%services 546,060 118,656 6,828 33,825 705,369 13.0%public sector 549,114 156 0 0 549,271 10.1%physical goods manufacture 407,740 54,479 3,534 30,340 496,093 9.2%Loans and Insurance 425,994 735 34 458 427,222 7.9%tourism 255,750 117,091 4,827 27.797 405,466 7.5%trade 301,636 31,483 3,874 36,288 373,281 6.9%Construction 203,163 51,268 2,740 11,117 268,287 5.0%Cable cars 254,377 4,999 0 1,382 260,758 4.8%transport and communications 80,007 18,512 6,451 1,512 106,481 2.0%energy-/Water utilities 13,650 2,476 32 3,887 20,044 0.4%Miscellaneous 36,126 8,217 7,654 2,053 54,050 0.9%

total 4,524,408 628,343 59,532 204,422 5,416,706 100.0%

Creditworthiness by sector, domestic in €‘000

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Creditworthiness structure of credit risk by type of businessthe share of corporate business clients in the total

credit risk volume is 58.0%. private customers represent a share of 15.5%, the other 26.5% relate to institutional clients and banks.

Creditworthiness structure by type of business in €‘000

types of business

Data no visible risk of default

With comment


problematic total

Corporate clients


retail clients total drawn 1,164,910 118,581 32,179 71,099 1,386,769share in % 84.0% 8.6% 2.3% 5.1% 100.0%provision for risks 7,293 3,534 4,351 32,913 48,091percentage of cover 0.6% 3.0% 13.5% 46.3% 3.5%


total drawn 2,365,803 799 1,409 0 2,368,011share in % 99.9% 0.0% 0.1% 0.0% 100.0%provision for risks 6,477 0 0 0 6,477percentage of cover 0.3% 0.0% 0.0% 0.0% 0.3%

total Total drawn 7,733,160 820,265 104,712 267,373 8,925,510Share in % 86.6% 9.2% 1.2% 3.0% 100.0%Provision for risks 45,889 22,933 11,488 127,475 207,787Percentage of cover 0.6% 2.8% 11.0% 47.7% 2.3%

Currency no visible risk of default

With comment



eur 6,631,635 708,384 65,725 246,021 7,651,765 85.7%CHF 642,257 72,213 23,250 6,300 744,021 8.3%CHF with swiss customers 341,067 32,418 15,721 14,904 404,109 4.5%usD 81,217 3,760 17 34 85,027 1.0%JpY 25,249 3,102 0 115 28,465 0.3%Miscellaneous 11,735 388 0 0 12,123 0.2%

total 7,733,160 820,265 104,712 267,373 8,925,510 100.0%

Creditworthiness structure of credit risk by currency85.7% (previous year: 82.1 %) of the credit risk volume related to loans in euros. 12.8% were accounted for

by swiss Francs (previous year: 15.4 %), the remaining currencies account for 1.5% (previous year: 2.5%) of the volume of receivables.

Creditworthiness structure by currency in €‘000


Dimension No visible risk of default

With comment


Problematic Total

Total drawn 7,733,160 820,265 104,712 267,373 8,925,510Land register collateral 1,468,800 302,988 41,845 59,965 1,873,597Collateral securities 161,099 33,161 5,697 577 200,534Collateral securities 594,762 164,711 21,728 20,248 801,449

Collateral in % 28.8% 61.1% 66.2% 30.2% 32.2%

Collateral receivedBTV has received collateral in the form of mortgages, shares and other securities and other assets. In particular for higher risk classes we ensure that with a reduction in the level of quality of borrower

creditworthiness the amount of the collateralisation increases. The lower level of securities in the credit-worthiness class ‚bad debt‘ (this category contains cli-ents who have defaulted) is due to securities already having been used.

Collateral received in €‘000

Creditworthiness structure of overdue loansThe following charts show a breakdown of overdue, but not written-down financial debts by the number of days overdue and the risk-class assigned. That means the borrower is in arrears in relation to

payment or interest or repayment of capital. Accord-ing to BTV estimates - where the debtors or the avail-able securities are assessed - it is however not correct to establish individual value adjustments.

Creditworthiness structure by overdue debts in €‘000

Due date Due date No visible risk of default

With comment


Total

31 December 2013 31-60 days61-90 days

2,518556

1,377366

452869

4,3461,790

Total 31 December 2013 3,074 1,743 1,321 6,137

31 December 2012 31-60 days61-90 days

2,618316

1,2292,789

3,238983

7,0844,087

Total 31 December 2012 2,934 4,018 4,220 11,172

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type of concession number of concessions/client

no visible risk of default

With comment


problematic total

Capital repayment was adjusted

1 50,834 11,242 6,007 5,160 73,2422 1,420 1,609 40 0 3,0693 0 0 0 1,377 1,377

Interest payment to be made was reduced

1 0 152 0 13,951 14,103

total 52,254 13,003 6,047 20,487 91,792

risk structure of businesses with concessions according to type and number/clientthe following table shows the volume of loans af-fected by concessions dependent on the type of con-cessions agreed. Furthermore a breakdown according to the number of concessions granted per borrower within the reporting period is presented. the type of

capital repayment was adjusted for the largest section of the volumes affected by concessions.. It hereby concerns a volume of loans to the tune of €77.6 million or 84.6%. With regard to €14.1 million or 15.4% there was a reduction of the interest payments to be made.

Credit quality Values no visible risk of default

With comment


problematic total

not value adjusted and not bad debt

total drawn 52,254 13,003 6,047 0 71,304provision for risks 412 468 800 0 1,680shares/other securities 22,650 8,377 1,659 0 32,686

not value-adjusted and bad debt

total drawn 0 0 0 351 351provision for risks 0 0 0 0 0shares/other securities 0 0 0 269 269

Value-adjusted and bad debt

total drawn 0 0 0 20,136 20,136provision for risks 0 0 0 6,340 6,340shares/other securities 0 0 0 6,359 6,359

total Total drawn 52,254 13,003 6,047 20,487 91,792Provision for risks 412 468 800 6,340 8,020Shares/other Securities 22,650 8,377 1,659 6,628 39,314

risk structure of businesses with concessions according to credit qualitythe table below illustrates businesses with conces-sions structured according to their credit quality. the credit quality is differentiated hereby as follows: • not value-adjusted and not bad debt• not value-adjusted and bad debt• Value-adjusted and bad debt

In addition for each credit quality, the extent to which the risk provision has been built up is illustrated or the extent of the securities available. Within the risk provi-sions illustrated in the first three credit rating levels, it concerns portfolio valuation adjustments. the risk provisions shown in the category “bad debt” are value adjustments or reserves.

risk structure of businesses with concessions according to credit quality in €‘000

risk structure of businesses with concessions according to type and number/client in €‘000.

BtV BusIness report 2013 100 |101

sector no visible risk of default

With comment


problematic total

services 20,475 1,511 2,787 1,514 26,287tourism 10,056 5,508 2,093 693 18,349private 11,987 2,574 442 645 15,649physical goods manufacture 1,448 448 0 13,555 15,450property management 6,925 1,248 1 462 8,637Construction 567 159 0 3,253 3,979trade 89 1,555 119 364 2,127transport and communications 686 0 586 0 1,272Loans and Insurance 22 0 0 0 22Miscellaneous 0 0 19 0 19

total 52,254 13,003 6,047 20,487 91,792

Country no visible risk of default

With comment


problematic total

austria 39,332 10,219 3,982 17,473 71,006Germany 12,177 1,078 0 2,864 16,119switzerland 745 1,547 0 0 2,293Italy 0 159 46 0 205usa 0 0 0 150 150Miscellaneous 0 0 2,019 0 2,019

total 52,254 13,003 6,047 20,487 91,792

risk structure of businesses with concessions according to economic sectorsthe volume of loans affected by concessions is distrib-

uted equally across the economic sectors. A concentration in concessions in specific economic sectors cannot be recognised.

risk structure of businesses with concessions according to countrythe following table shows the risk structure of busi-ness transactions with concessions sorted by country. the largest part of the volume, with a volume of loans

amounting to € 71.0 million or 77.4%, concerns bor-rowers from austria. Furthermore concessions were made to borrowers in Germany, switzerland, Italy, the united states and other countries.

segment no visible risk of default

With comment


problematic total

Corporate clients 37,826 9,717 5,586 19,842 72,970retail clients 14,428 3,286 461 645 18,821

total 52,254 13,003 6,047 20,487 91,792

risk structure of businesses with concessions according to segments

Concessions the were particularly made regarding loans to corporate clients.

risk structure of businesses with concessions according to segments in €‘000.

risk structure of businesses with concessions according to economic sectors in €‘000.

risk structure of businesses with concessions according to country in €‘000.

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risk structure for derivatives according to segmentsthe value of receivables from derivatives is calculated according to section 234 solvaV (market valuation method) after consideration of netting framework agreements and cash collateral. this results in receiva-

bles from derivatives in the amount of €62.5 million. €18.8 million or 30.1% of this is related to loans to credit institutions. the loans to corporate clients total €43.3 million or 69.2% and €0.4 million or 0.7% to private clients.


With comment


problematic total

Corporate clients 33,510 9,396 262 89 43,256private 338 0 71 0 409Institutional clients and banks 18,833 0 0 0 18,833

total 52,681 9,396 333 89 62,498

risk structure of derivatives according to segments and currencyaround 72.2% of the volume amounts to loans

which are denominated in eur. 23.2% originate from CHF transactions, the remaining 4.6 % relate to usD and other currencies.

segment Currency no visible risk of default

With comment


problematic total

Corporate clients

eur 24,349 3,996 262 89 28,696CHF 8,766 5,400 0 0 14,165usD 144 0 0 0 144JpY 131 0 0 0 131Miscellaneous 120 0 0 0 120

private eur 178 0 71 0 249CHF 160 0 0 0 160


eur 16,245 0 0 0 16,245usD 1,918 0 0 0 1,918CHF 93 0 0 0 93Miscellaneous 577 0 0 0 577

total 52,681 9,396 333 89 62,498


With comment


problematic total

Corporate clients 737 255 246 577 1,815retail clients 268 74 12 8 362

total 1,005 329 258 585 2,177

risk structure of businesses with concessions according to segments

Businesses, where concessions were made, generated income from interest to the tune of € 2.2 million in the financial year 2013.

risk structure of businesses with concessions according to segments in €‘000.

risk structure of derivatives according to segments in €‘000

risk structure of derivatives according to segments and currencies in €‘000

BtV BusIness report 2013 |103 102

risk structure of derivatives by transaction type63.2% of loans relate to interest swaps, 32.4% to currency derivatives and 4.4% to interest rate

options. Currently there is no credit risk in relation to derivatives on asset values.

transaction type no visible risk of default

With comment


problematic total

Interest swaps 34,439 4,649 333 47 39,469Currency swaps 9,056 4,465 0 0 13,521Foreign exchange futures 6,775 0 0 0 6,775Interest options 2,411 281 0 42 2,734

total 52,681 9,396 333 89 62,498

risk structure of derivatives by country56.5% of loans come from counterparties in austria. a further 27.0% relate to German partners. the remainder is distributed among clients in

switzerland, the united states, France and other countries. there are no credit risks from derivatives with regard to Greece, Ireland, Italy, portugal, spain and Hungary.

Country no visible risk of default

With comment


problematic total

austria 27,122 7,876 251 89 35,338Germany 15,436 1,371 82 0 16,889switzerland 3,476 0 0 0 3,476usa 1,204 149 0 0 1,353France 916 0 0 0 916Miscellaneous 4,527 0 0 0 4,527

total 52,681 9,396 333 89 62,498

risk structure of derivatives by transaction type in €‘000

risk structure of derivatives by country in €‘000

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Market risk - Liquidation approach

MarKet rIsK - LIQuIDatIon approaCH Maximum average Year-end


Market risk the following diagram shows the utilisation of mar-ket risk limits at global banking level. risk capital is assigned to each of the risk types of interest risk, currency exchange rate risk, equity price risk and credit spread risk. the correlations which are inher-ent in the timelines have a risk-reducing effect.

For the interest risk, 15.5% of the respective risk cover capital was allocated to risk capital, while for the categories currency risk and equity price risk a limit of 1.5% was allocated to each. the credit spread risk was quantified for the first time on 30 June 2013 and a a limit of 8.0% was set. When viewed as a whole, this results with regard to the market risk in an increase of the exploitation as well as the allocated risk cover capital.





6.0%

18.0%

12.0%

24.0%

0

80

40

200

160

120

240



Interest rate risk - Liquidation approach




Interest rate rIsK - LIQuIDatIon approaCH Maximum average Year-end


Interest rate riskthe following diagram shows the utilisation of interest risk limits on the global banking level. the interest risk primarily results from the differences in time periods in the assets/liabilities items in the bank register.

a risk capital has been allocated in the amount of 15.5% of the total risk capital since 30 June 2013 to this limit category. the utilisation slightly de-creased during the course of 2013 primarily due to the reduction of the duration of the bond portfolio.

Jan 13 Feb 13 March 13 april 13 May 13 June 13 July 13 aug 13 sept 13 oct 13 nov 13 Dec 130

40

120


80

160

200

0.0%

6.0%

18.0%

12.0%

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Currency riskthe following illustration depicts the risk in compari-son to the allocated risk-covering capital and the limit set for this risk category. Here in particular the reduc-tion of the allocated risk capital from 3.0% to 1.5% of

the risk cover capital is obvious. the utilisation re-mains at a constant level thereby which, in turn, takes account of the low significance of this risk category in the generation of income.

Currency risk - Liquidation approach

CurrenCY rIsK - LIQuIDatIon approaCH Maximum average Year-end







30

20

10

0.0%

2.0%

3.0%

1.0%

40


share price risk - Liquidation approach

sHare prICe rIsK - LIQuIDatIon approaCH Maximum average Year-end


share price riskthe following illustration depicts the risk in com-parison to the allocated risk-covering capital and the limit set for this risk category. In this category too, the reduction of the allocated risk capital is visible.

Here the total bank limit was reduced from 3.0% to 1.5% of the risk covering capital, as the generation of income from the equity business does not count amongst BtV‘s core activities.





30

20

40


10

0.0%

2.0%

3.0%

1.0%

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Credit spread riskDue to the developments in the financial markets in the past few years, and the resultant require-ments on the part of the supervisory authorities, the credit spread risk has gained in significance in the banking landscape. the maintenance of a liquidity book and the associated exposure of these assets in relation to the changes to the credit

spreads are of crucial significance for the income of banks. From this perspective, since 30 June 2013 the credit spread risk is explicitly quantified and limited to 8.0% of the risk covering capital. the development of the utilisation has since shown a stable picture, which, in turn, is due to a slight relaxation of the financial markets in the last six months of 2013.

CreDIt spreaD rIsK - LIQuIDItY approaCH Maximum average Year-end


Credit spread risk - Liquidity approach






60

40

20

80

100

0.0%

6.0%

4.0%

2.0%

8.0%

10.0%120


Liquidity risk - Liquidation approach

LIQuIDItY rIsK - LIQuIDatIon approaCH Maximum average Year-end


Liquidity riskthrough the new design of the ICaap within BtV, there were also changes in the calculation of the liquidity risk.

through factoring in the liquidity buffer costs the utilisation has increased since 1 July 2013, however never reaching more than 75.0% of the limit.






10

20

30

0.0%

1.0%

2.0%

3.0%40

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operational risk – Liquidation approach




operatIonaL rIsK – LIQuIDatIon approaCH Maximum average Year-end


operational riskthe calculation of the operational risk is made an-nually. therefore, the absolute utilisation remains constant throughout the year. the relative utilisa-tion on the other hand varies depending on the risk cover capital available at the time.

In order to guarantee a closed circuit process and the quality of the implemented control loop - risk identification, risk quantification and risk manage-ment - decision-makers are kept informed on a continuous basis by a quarterly report on the trend in operational risk (loss events incurred) and the measures taken and their ongoing monitoring.



1.0%

2.0%

4.0%

0

10

20

50

30

3.0%

40


MaCroeConoMIC rIsK - LIQuIDatIon approaCH Maximum average Year-end


Macroeconomic riskThe macroeconomic risk has been quantified since 30 June 2013 and is limited to 7.0% of the risk cover capital. this primarily takes account of the develop-ment, that the risk-bearing capacity condition needs to be maintained also in economically difficult periods

such as, for instance, during a strong economic downturn. Herewith, the quantifying takes place on a quarterly basis by means of the Group bank stress tests carried out, which are also based on macroeco-nomic scenarios.

Macroeconomic risks - Liquidation approach






40

20

60

80

0.0%

6.0%

4.0%

2.0%

8.0%100

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Further developments in 2013 and outlook for 2014

Further developments in 20132013 was strongly characterised by the further development of the management instruments. BtV‘s ICaap was especially at the heart of the de-velopment. Within the ICaap, on the one hand, the methods for calculating the risk cover capital were refined (liquidation and going concern approach), on the other hand, existing processes for quan-tifying the risks where further developed or new processes were introduced to quantify the risks.

In particular, the following processes where further developed and recently introduced:

• the reworking of the methods for calculating the risk cover capitals (liquidation and going concern approach).

• Development of a model to quantify the credit concentration risk which is due to a high degree of commitment to a specific customer or a com-mercial entity.

• Further development of the core calculations to quantify the risk of the borrower defaulting and investment risk.

• expanding the process to quantify the market risk. the historical value-at-risk model now also takes into consideration credit spread risks for BtV‘s assets in securities held on its own behalf.

• Integration of the macroeconomic risk as an indi-vidual risk category in the risk-bearing capability calculation.

Furthermore, the focus of the overall Group banking management was on the implementation of the pack-age of measures from the regulations of supervisory law through the Capital requirement regulation (Crr) and the Capital requirement Directive (CrD IV). It is here in particular that the operationalisation of the overall Group banking management with regard to the new capital requirements as well as complying with the liquidity core figures from Basel III should be mentioned in this context.

perspective for 2014 Investing, not speculating - that is always been BTV‘s philosophy. This ideology is confirmed through the success of the company. In view of this, BTV will also continue in the financial year 2014 with its conservatively selected risk strategy and is planning to expand the core capital.

BtV views the quality of its management instru-ments and its human capital as central success fac-tors in this loop. against this backdrop, the existing management instruments will be further enhanced in 2013 and the already high level of knowledge reinforced by targeted top-class training.

Furthermore validations of the risk measuring systems are planned. Within credit risk, validation of the rating systems is being carried out here. this is being divided up into a quantitative and qualitative section. the qualitative validation, on the one hand, comprises all validation processes in which statistical core values (selectivity, stability and calibration) of the rating pro-cess are determined and interpreted using an empiri-cal database. the qualitative validation, on the other hand, has the task of ensuring the applicability and the correct use of the quantitative methods in practice. Within the market and liquidity risk, a validation of the interest or capital commitment of products with non-specific interest or capital commitments take place.

In 2014, in line with the developments in regulatory law, the focus is based on a further development of the stress test methodology. on the one hand, an ICaap budgeting is being undertaken for different stress scenarios. on the other hand, we are work-ing on the development of reserve stress tests in which, starting with an insolvency case, those fac-tors are investigated which could lead to such an event. as a result, the management will be enabled to filter those events which present significant risks factors for BtV‘s business model.


36 otHer DetaILs in €‘000 31 December 2013

31 December 2012

a) non interest-bearing loans 147,223 153,747

assets deposited as guarantees:Debenture bonds and other fixed-interest securities 2,006,389 1,914,903Loans to credit institutions 31,590 45,348Loans to clients 960,596 818,475

b) assets deposited as guarantees 2,998,575 2,778,726

Liabilities for which collateral was transferred:trust fund deposits 11,671 12,930Bonds issued 221,610 58,750Liabilities to credit institutions 118,674 162,345

c) Liabilities for which collateral was transferred 351,955 234,025

subordinated assets:Loans to clients 8,900 8,900Debenture bonds and other fixed-interest securities 42,328 47,583equities and other variable-interest securities 20,560 21,923

d) subordinated assets 71,788 78,406

Foreign currency volumesreceivables 1,396,162 1,778,894Liabilities 831,995 1,156,924

e) Foreign currency volumes

Foreign volumes:Foreign assets 3,509,411 3,505,820Foreign liabilities 2,119,290 2,160,146

f) Foreign volumes

trust loans: 61,173 56,539 Loans to clients 61,173 56,539

trust liabilities: 61,773 56,539Liabilities to credit institutions 41,036 34,264Liabilities to clients 20,737 22,275

g) trust business

h) Genuine repurchase agreements 871,125 867,585

performance guarantees and credit risks:performance guarantees 225,239 256,523Credit risks 1,097,790 832,496

i) performance bonds and credit risks 1,323,029 1,089,019

notes to the Balance sheet - other and supplementary notes

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37 CoMFort Letters

BtV issued the following comfort letters:

The European Investment Bank (EIB) refinanced investment loans for clients amounting to €5,238,000.

In the context of pension business, securities were transferred to third parties. at 31 December 2013, the total market value was €1,959,405,000. of which €963,765,000 were in the category

“available for sale”, €135,237,000 in the fair value option and €860,403,000 were in the category “Held to Maturity”. the associated liabilities are shown under liabilities to credit institutions and liabilities to customers. the utilisation on 31 December 2013 amounts to €871,125,000.

36a FaIr VaLue HIerarCHY oF FInanCIaL InstruMents as at 31 DeCeMBer 2013 in €‘000

Financial assets/debts

effects from settlement

agreements

received/issued securities in the

form of financial instruments

Financial assets/debts (net)

trading assets - derivatives 66,302 –24,181 –3,059 39,062total debt 66,302 –24,181 –3,059 39,062

Liabilities to Credit institutes and client deposits

7,180,273 0 –1,071,136 6,109,137

trading liabilities – Derivatives 64,152 –24,181 –30,473 9,498total liabilities 7,244,425 –24,181 –1,101,609 6,118,635

InForMatIon reGarDInG oFFsettInG oF FInanCIaL InstruMents as at 31 DeCeMBer 2012 in €‘000

Financial assets/debts

effects from settlement

agreements

received/issued securities in the

form of financial instruments

Financial assets/debts (net)

trading assets - derivatives 105,374 –31,579 –1,587 72,208total debt 105,374 –31,579 –1,587 72,208

Liabilities to Credit institutes and client deposits

7,207,596 0 –1,069,457 6,138,139

trading liabilities – Derivatives 100,089 –31,579 –46,141 22,369total liabilities 7,307,685 –31,579 –1,115,598 6,160,508

For Miniaturpark Bodensee GmbH, a comfort letter was issued in favour of the Liebenau foundation for €299,000, as part of the leasing and service

contracts. It is not expected that this will be taken up in the near future.


38b reCeIVaBLes anD LIaBILItIes to assoCIateD, non-ConsoLIDateD CoMpanIes anD HoLDInGs in €‘000

31 December 2013

31 December 2012

Loans to credit institutions 0 0Loans to clients 8,215 3,270

Liabilities to customers 8,215 3,270

Liabilities to credit institutions 0 0Liabilities to clients 18,531 10,006

total liabilities 18,531 10,006

In the context of the profit and loss account, there are earnings of €275,000 (previous year: €415,000) and expenses of €80,000 (previous year: €83,000)

were incurred for transactions with the parent company and its associated companies.

38 notes on transaCtIons WItH CLoseLY reLateD persons

as part of normal business activity transactions are concluded with closely related companies and per-

sons at normal market terms and conditions. the scope of these transactions is shown below:

38a eMoLuMents anD Loans to MeMBers oF tHe BoarD oF DIreCtors anD tHe superVIsorY BoarD

the loans and advances granted to the members of the Board of Directors amounted to a total volume at the end of 2013 of €350,000 (previous year: €87,000). Loans of €42,194,000 are due from members of the supervisory Board (previous year: €42,692,000). the interest rates and other conditions (maturity and col-lateral) are in line with the market. During the current financial year, members of the Board of Directors made loan repayments of (previous year: €69,000). Members of the supervisory Board made loan repayments during 2013 of €48,000 (previous year: €51,000). During the financial year 2013, loans were granted to persons and companies close to members

of the supervisory Board at normal market interest rates and under normal market conditions.

In the reporting year, remuneration of the Board of Directors amounted to €1,693,000 including sever-ance pay (previous year: €1,338,000), the pension pay-ments to former members of the Board of Directors amounted to €589,000 (previous year: €570,000).

During the financial year, active members of the BTV aG supervisory Board received annual remuneration for their positions in the amount of €200,000 (previ-ous year: €190,000).

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38d tHe at-eQuItY VaLueD assoCIateD CoMpanIes sHoWeD tHe FoLLoWInG VaLues at tHe BaLanCe sHeet Date in €‘000

31 December 2013

31 December 2012

assets 24,672,249 24,575,827Liabilities 22,538,948 22,575,791earnings 984,367 1,078,426Profit/loss over the period 162,522 154,758

38e tHe assoCIateD CoMpanIes VaLueD at ContInueD aCQuIsItIon Costs sHoWeD VaLues at tHe BaLanCe Date oF in €‘000

31 December 2013

31 December 2012

assets 67,939 65,900Liabilities 29,302 26,297earnings 57,415 52,495Profit/loss over the period –276 1,438

The last available yearly financial statement was used as the basis for the calculation of the values in tables 38d and 38e.

38c reCeIVaBLes anD LIaBILItIes to assoCIateD, CoMpanIes anD HoLDInGs in €‘000

31 December 2013

31 December 2012

Loans to credit institutions 105,125 80,172Loans to clients 35,897 36,204

Liabilities to customers 141,022 116,376

Liabilities to credit institutions 140,646 92,720Liabilities to clients 1,843 5,111

total liabilities 142,489 97,831

In the context of the profit and loss account, there are earnings of €1,207,000 (previous year: €1,763,000) and expenses of €780,000 (previous year: € 1,015,000) were accrued for transactions with the parent com-pany and its associated companies.

the fair value of of the companies listed on the stock exchange, which are included according to the equity

method was €302 million on the reporting date (previous year: €298 million). the temporary differ-ences under Ias 12.87 on the reporting date amount-ed to €270 million (previous year: €253 million).

the number of shares held by associated compa-nies was 6,702,625 (previous year: 6,702,625 shares).


39 totaL VoLuMe oF not Yet transaCteD DerIVatIVe FInanCIaL proDuCts

in €‘000 Contract volume / residual terms Market valuespositive negative positive negative positive negative

< 1 year 1- 5 years > 5 years total < 1 year 1- 5 years > 5 yearsInterest swaps 221,169 1,063,618 482,666 1,767,453 1,490 –1,486 37,135 –35,197 19,537 –5,344

purchase 110,923 420,797 97,443 629,163 0 –1,486 4 –34,735 118 –4,991sale 110,246 642,821 385,223 1,138,290 1,490 0 37,131 –462 19,419 –353

Interest rate options 54,808 197,033 131,760 383,601 185 –185 407 –410 1,078 –986purchase 27,404 98,659 65,880 191,943 183 –2 399 –6 778 –198sale 27,404 98,374 65,880 191,658 2 –183 8 –404 300 –788

Interest rate contracts, total 275,977 1,260,651 614,426 2,151,054 1,675 –1,671 37,542 –35,607 20,615 –6,330

Currency swaps 17,500 48,536 12,186 78,222 1,943 –1,909 7,674 –7,564 1,291 –1,619purchase 8,750 24,268 5,300 38,318 0 –1,909 0 –7,564 0 –1,619sale 8,750 24,268 6,886 39,904 1,943 0 7,674 0 1,291 0

Foreign exchange futures 37,116 4,358 0 41,474 336 –1,006 3 –160 0 0FX swaps 921,960 0 0 921,960 5,506 –7,056 0 0 0 0

total currency exchange rate contracts 976,576 52,894 12,186 1,041,656 7,785 –9,971 7,677 –7,724 1,291 –1,619

Derivate trades relating to securities and other derivatives

26,000 16,000 5,000 47,000 814 0 554 0 60 0

purchase 0 0 0 0 0 0 0 0 0 0sale 26,000 16,000 5,000 47,000 814 0 554 0 60 0

trades relating to securities and other derivatives total

26,000 16,000 5,000 47,000 814 0 554 0 60 0

total bank register 1,278,553 1,329,545 631,612 3,239,710 10,274 –11,642 45,773 –43,331 21,966 –7,949

Coupon swap options – trading book 0 15,383 34,735 50,118 0 0 8 –11 303 –315purchase 0 7,171 17,022 24,193 0 0 8 0 303 0sale 0 8,212 17,713 25,925 0 0 0 –11 0 –315

Coupon swap – trading book 0 0 0 0 0 0 0 0 0 0purchase 0 0 0 0 0 0 0 0 0 0sale 0 0 0 0 0 0 0 0 0 0

Interest rate contracts, total 0 15,383 34,735 50,118 0 0 8 –11 303 –315


0 0 0 0 0 0 0 0 0 0

purchase 0 0 0 0 0 0 0 0 0 0trades relating to securities and other derivatives total

0 0 0 0 0 0 0 0 0 0

total trading book 0 15,383 34,735 50,118 0 0 8 –11 303 –315

Non-transacted derivatives Total financial instruments

1,278,553 1,344,928 666,347 3,289,828 10,274 –11,642 45,781 –43,342 22,269 –8,264

Total volume of not yet transacted derivative financial products as at 31 December 2013:

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Total volume of not yet transacted derivative financial products at 31/12/2012:

in €‘000 Contract volume / residual terms Market valuespositive negative positive negative positive negative

< 1 year 1- 5 years > 5 years total < 1 year 1- 5 years > 5 yearsInterest swaps 178,477 1,302,856 470,853 1,952,187 1,701 – 865 56,824 – 53,336 25,184 – 23,150

purchase 39,357 598,948 184,261 822,567 0 – 865 0 – 53,335 0 – 23,150sale 139,120 703,908 286,592 1,129,620 1,701 0 56,824 – 1 25,184 0

Interest rate options 14,542 251,684 156,648 422,874 0 0 1,198 – 1,185 931 – 803purchase 7,271 125,842 78,324 211,437 0 0 1,116 – 70 517 – 286sale 7,271 125,842 78,324 211,437 0 0 82 – 1,115 414 – 517

Interest rate contracts, total 193,019 1,554,540 627,501 2,375,061 1,701 – 865 58,022 – 54,521 26,115 – 23,953

Currency swaps 18,500 47,500 24,933 90,933 2,702 – 2,680 6,632 – 6,432 4,721 – 4,945purchase 0 0 11,660 11,660 0 – 2,680 0 – 6,432 0 – 4,945sale 18,500 47,500 13,273 79,273 2,702 0 6,632 0 4,721 0

Foreign exchange futures 1 46,308 7,464 0 53,772 330 –1,003 0 –224 0 0FX swaps 1 1,524,529 0 0 1,524,529 3,177 –9,990 0 0 0 0

total currency exchange rate contracts 1,589,337 54,964 24,933 1,669,234 6,209 –13,673 6,632 –6,656 4,721 –4,945


23,461 51,300 0 74,761 389 0 1,674 0 0 0

purchase 20,100 0 0 20,100 298 0 0 0 0 0sale 3,361 51,300 0 54,661 91 0 1,674 0 0 0

trades relating to securities and other derivatives total

23,461 51,300 0 74,761 389 0 1,674 0 0 0

total bank register 1,805,817 1,660,804 652,434 4,119,055 8,299 –14,538 66,328 –61,177 30,836 –28,898

Coupon swap options – trading book 678 8,417 45,721 54,817 0 – 1 0 0 205 – 209purchase 82 4,186 22,464 26,732 0 0 0 0 205 0sale 596 4,231 23,257 28,085 0 – 1 0 0 0 – 209

Coupon swap – trading book 0 1,728 0 1,728 0 0 0 – 12 0 0purchase 0 1,728 0 1,728 0 0 0 – 12 0 0sale 0 0 0 0 0 0 0 0 0 0

Interest rate contracts, total 678 10,145 45,721 56,545 0 – 1 0 – 12 205 – 209


0 0 0 0 0 0 0 0 0 0

purchase 0 0 0 0 0 0 0 0 0 0trades relating to securities and other derivatives total

0 0 0 0 0 0 0 0 0 0

total trading book 678 10,145 45,721 56,545 0 – 1 0 – 12 205 – 209

Non-transacted derivatives Total financial instruments

1,806,495 1,670,949 698,155 4,175,600 8,299 –14,539 66,328 –61,189 31,041 –29,107

1 previous year‘s values adjusted


the trading volume is divided by the type of underlying financial instrument into the categories of interest rate, currency rate and security related trades. the selected subdivision of the volumes by time to maturity concords with international recommendations, as does the classification into interest rate, currency rate and security based trades. at the end of 2013, BtV only had otC (over the counter) trades on its books.

the derivative instruments held for non-trading purposes are mainly represented by interest rate contracts primarily requested by customers. alongside interest swaps customers also asked for cross-currency swaps and interest rate options. BtV closes off these positions with back-to-back transactions with other credit institutions and does not carry any risk on its own book. BtV itself uses primarily interest rate swaps to manage the overall bank rate risk. For management of currency rate risks BtV mainly uses foreign exchange futures and

currency swaps. In the reporting year, the foreign exchange futures and FX swaps are presented for the first time separately and the comparative fig-ures were adjusted. the securities-related transac-tions relate solely to issued structured investment products. the options required for these were bought in through third-party banks.

the group uses fair value hedge accounting predomi-nantly through interest rate swaps, in order to hedge against changes in the fair values of fixed-income financial instruments due to movements in market interest rates. the fair values of the hedging instru-ments are classified under assets in the other assets and classified as liabilities in the other liabilities.

the following table shows the current fair market value of derivatives, which are held as part of fair value hedges:

DerIVatIVes FaIr VaLue (as part oF FaIr VaLue HeDGes) in €‘000

other assets 2013

other liabilities

2013

other assets 2012

other liabilities

2012Derivatives in fair value hedges 12,461 6,237 1,776 9,958

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40 FaIr VaLue HIerarCHY oF FInanCIaL InstruMents WHICH are VaLueD at FaIr VaLue

The financial instruments reported at fair value are classified at fair value in the three tier valuation hierarchy as follows.

This hierarchy reflects the significance of the input data used for the valuation and is classified as follows: Quoted prices in active markets (Level 1): this category contains equity, corporate bonds and government lending listed on major exchanges. the fair value of financial instruments traded in active mar-kets is calculated on the basis of quoted prices, in so far as these represent prices applied within the context of regular and current transactions. An active market must fulfil cumulatively the fol-lowing conditions:

• the products traded on the market are homog-enous,

• normally willing contractual buyers and sellers can be found any time and

• prices are available to the public.

A financial instrument is seen as listed on an active market if its prices are available easily and regularly from a stock exchange, a trader or broker, an indus-try group, a price service agency or a supervisory authority and these prices represent actual and regularly occurring market transactions.

Valuation procedure through observable param-eters (Level 2): this category includes otC derivative contracts, receivables and issued debt securities of the Group classified at fair value.

Valuation procedures through significant unob-servable parameters (Level 3): The financial instruments in this category show input parameters which are based on unobserv-able markets.

The allocation of certain financial instruments to the categories requires a systematic assessment, especially if the valuation is based on both observable as well as unobservable market parameters. the instrument clas-sification may also change over time in consideration of changes to the market parameters.

For securities and other investments which are val-ued at fair value, the following valuation processes are applied:

Level 1 the fair value is derived from the transaction prices as traded on the stock exchange.

Level 2securities which are not traded in an active market are valued by means of the discounted cash flow method. this means that the future projected cash flows are discounted by means of suitable discount factors in order to calculate the fair value. the dis-count factors contain both the credit curve without credit risk as well as the credit spreads which follow the credit rating and the rank of the issuer. the in-terest curve for discounting contains hereby securi-ties account, money-market futures and swap rates as observable on the market. the calculation of the credit spread follows a 3-step process:

1) If there is for the issuer a bond of the same rank and of the same remaining term which is actively traded on the market, this credit spread is used.2) if there is no comparable bond which is actively traded on the market, the credit default swap spread (CDs spread) with a similar term is applied. 3) If there is neither a comparable bond traded on the market nor an actively traded CDs, then the credit spread from a comparable issuer is applied (level 3). this approach is currently not being used at the BtV group.


Level 3the accompanying current values of the men-tioned financial assets in the third stage where de-termined in accordance with generally recognised valuation processes. Significant parameters are the depreciation rate as well as long-term success and capitalisation values with consideration of the ex-perience of the management as well as knowledge of the market conditions of the specific industry.

the issues are categorised at level 2 and the valu-ation takes place in accordance with the following process:

Level 2the own issues are not subject to active trade on the capital market. Instead they are retail issues and private placements. the valuation consequently takes place by means of a discounted cash flow valuation model. this is based on an interest curve based on money market interest rates and swap interest as well as BtV‘s credit spreads. the credit spreads align themselves with the spreads that are payable at the time for an interest rate hedging transaction (interest spread on swap).

the derivatives are also categorised at level 2. the following valuation processes are applied:

Level 2Derivative financial instruments are divided into de-rivatives with a symmetrical payment profile as well as derivatives with an asymmetrical payment profile. at BtV, derivatives with a symmetrical payment profile contain interest derivatives (interest swaps and interest rate forwards) and foreign currency derivatives (FX swaps, cross currency swaps and FX outright transactions). these derivatives are calculated by means of the discounted cash flow method which is based on money market interest rates, money market futures-interest rates, swap interest rates as well as basis spreads which can be observed continually on the market.

at BtV, derivatives with an asymmetrical pay-ment profile contain interest derivatives (caps and floors). The calculation of the fair value occurs here by means of the Black-76-option price model. all inputs are either completely directly observable on the market (money market rates, money market futures- interest rates as well as swap interest rates) or derived from input factors observable on the market (caps / floor volatilities implicitly deducted from option prices).

the following tables show the fair value valuation methods used in order to determine the fair value of the balance sheet financial instruments.

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FaIr VaLue HIerarCHY oF FInanCIaL InstruMents WHICH are VaLueD at FaIr VaLue as at 31 DeCeMBer 2013 in €‘000

prices listed in active markets

Level 1

Valuation methods based on market data

Level 2

Valuation methods not

based on market data

Level 3Financial assets stated at fair value

trading portfolio securities 0 0 0Positive market values from derivative financial instruments 0 77,401 0Assets classified at fair value 129,100 25,822 301Financial assets available for disposal 891,804 127,321 232,064

Overall financial assets classified at fair value 1,020,904 230,544 232,365

Financial liabilities stated at fair valueNegative market values from derivative financial instruments 0 62,883 0Liabilities classified at fair value 0 554,796 0

Overall liabilities classified at fair value 0 617,679 0

FaIr VaLue HIerarCHY oF FInanCIaL InstruMents WHICH are VaLueD at FaIr VaLue as at 31 DeCeMBer 2012 in €‘000


Level 1


Level 2



Level 3Financial assets stated at fair value

trading portfolio securities 0 0 0Positive market values from derivative financial instruments 0 105,495 0Assets classified at fair value 149,297 53,969 0Financial assets available for disposal 872,072 83,225 0

Overall financial assets classified at fair value 1,021,369 242,689 0

Financial liabilities stated at fair valueNegative market values from derivative financial instruments 0 105,354 0Liabilities classified at fair value 0 557,549 0

Overall liabilities classified at fair value 0 662,903 0


41 FaIr VaLue oF FInanCIaL InstruMents, WHICH are not VaLueD at FaIr VaLue

assets in €‘000

Fair value 31 December

2013


2013


2012


2012Cash reserves 229.545 229.545 109,068 109,068Loans to credit institutions 323,088 321,850 470,595 467,009Loans to clients 6,881,828 6,404,543 6,893,801 6,387,467Financial assets – held to maturity 875,006 846,262 835,193 787,509

LIaBILItIes in €‘000


2013


2013


2012


2012Liabilities to credit institutions 1,744,778 1,752,704 1,815,028 1,812,496Liabilities to clients 5,431,697 5,427,569 5,425,417 5,395,099securitised debt 467,988 478,781 342,923 353,078subordinated capital 253,086 254,756 275,879 277,138

In the following table for each balance sheet item the fair market value is compared to the book value. the market value is the amount, which in an active market could be raised from the sale of a financial instrument or which would need to be paid to make an equivalent purchase.

For positions without a contractually fixed term the relevant book value was applied. If no market prices exist, then generally accepted valuation models were applied, in particular analysis using discounted cash flow and the option price model.

Movements between level 1, level 2 and level 3the proportion of assets at level 2 changed through re-categorisation from level 1 to level 2 during 2013 by €9,723,000. The reclassification is the result of a reduc-tion in activities in certain markets.

In 2013, securities classified at fair value in the amount of €608,000 as well as financial assets available for sale in the amount of €232,064,000 were reclassified from level 2 to level 3, as no corresponding comparative values were available.

MoVeMents In LeVeL 3 oF FInanCIaL InstruMents assesseD at FaIr VaLue in €‘000

December 2012

success in profit and loss

success from

other operating

income

pur-chases

sales, repay-ments

transfer in

Level 3

transfer from

level 3

Currency conversion

December 2013

trading portfolio securities 0 0 0 0 0 0 0 0 0positive market values from de-rivative financial instruments

0 0 0 0 0 0 0 0 0

Assets classified at fair value 0 307 0 0 0 608 0 0 301

Financial assets available for disposal

0 0 0 0 0 232,064 0 0 232,064

Overall financial assets classified at fair value

0 307 0 0 0 232,672 0 0 232,365

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42 FaIr VaLue HIerarCHY oF FInanCIaL InstruMents, WHICH are not VaLueD at Fear VaLue as at 31 DeCeMBer 2013 in €‘000





Financial assets not valued at fair valueLoans to credit institutions 0 0 323,088Loans to clients 0 0 6,881,828Financial assets held until maturity 829,821 45,186 0

Overall financial assets not valued at fair value 829,821 45,186 7,204,916

Financial liabilities not valued at fair valueLiabilities to credit institutions 0 0 1,744,778Liabilities to clients 0 0 5,431,697securitised debt 0 467,988 0subordinated capital 0 253,086 0

overall liabilities not valued at fair value 0 721,074 7,176,475

assets

Level 1For securities which were assigned to the account-ing category ‚held to maturity‘ (HtM), the fair value is calculated from the price created on the market.

Level 2For securities which cannot be valued through prices created on the market (mostly regarding securi-ties traded on stock exchanges and on functioning markets), the fear value is determined in accordance with the discounted cash flow method. This means that the future projected cash flows are discounted by means of suitable discount factors in order to calculate the fair value. In this case, adequate credit spreads per bond issuer are flowing in. The credit spread is primar-ily derived for illiquid securities from credit default swaps. If no credit default swap spread is available, the calculation of the credit spread is made via comparable financial instruments from comparable issuers avail-able on the market. Furthermore, external valuations by third parties are also taken into consideration which however have indicative character at any rate.

Level 3at level 3, the fair value calculation takes place via models, whereby a part of the input parameters contains data not observable on the market and,

consequently, are based on assumptions which are made within the bank. this primarily effects non-securitised loans to customers and banks which are valued ‚at cost‘. Herewith, for the fair value calcula-tion the underlying credit spread per counter party is normally not known and also cannot be derived from the market.

Liabilities

Level 2For liabilities which are not accounted for at fair value, the fair value is determined according to the discounted cash flow method. This means that the future projected cash flows are discounted by means of suitable discount factors in order to calculate the fair value. In the case of securitised liabilities, BtV‘s credit spread is used which orien-tates itself with the spreads of bond issues payable at the time.

Level 3In the same way as the non-securitised loans, the non-securitised liabilities to customers and banks are also components of level 3. these products are also generally not valued at market value. the crea-tion of a fair value also takes place by means of the discounted cash flow method whereby the credit spread remains disregarded here.


43 terM to MaturItY BreaKDoWn

assets as at 31 DeCeMBer 2012 in €‘000

due daily < 3 months 3 Month – 1 year

1- 5 years > 5 years total

Loans to credit institutions 229,888 116,921 79,837 40,364 0 467,009Loans to clients 861,151 408,752 920,615 1,946,414 2,250,535 6,387,467trading assets 0 2,196 937 28,760 3,433 35,326Financial assets - at fair value through profit or loss

858 0 3,086 176,214 23,109 203,267

Financial assets - available for sale 59,651 36,089 70,777 546,211 398,584 1,111,313

Financial assets – held to maturity 0 33,036 119,734 401,067 233,672 787,509

total assets 1,151,548 596,994 1,194,986 3,139,030 2,909,333 8,991,891

LIaBILItIes as at 31 DeCeMBer 2013 in €‘000



Liabilities to credit institutions 208,152 842,619 559,243 94,890 47,800 1,752,704

Liabilities to clients 2,992,862 1,219,764 591,604 535,333 88,006 5,427,569securitised debt 0 32,854 75,169 538,661 233,807 880,491trading liabilities 0 4,378 4,232 11,657 1,176 21,443subordinated capital 0 20,320 86,475 209,651 91,395 407,841

total liabilities 3,201,014 2,119,935 1,316,723 1,390,192 462,184 8,490,048

LIaBILItIes as at 31 DeCeMBer 2012 in €‘000



Liabilities to credit institutions 469,834 952,615 42,622 276,858 70,567 1,812,496

Liabilities to clients 2,590,634 1,522,226 867,329 377,131 37,778 5,395,099securitised debt 0 57,905 193,497 432,230 64,913 748,545trading liabilities 0 10,199 1,312 18,054 1,388 30,954subordinated capital 0 4,899 26,095 314,608 93,618 439,220

total liabilities 3,060,468 2,547,844 1,130,855 1,418,881 268,264 8,426,314

assets as at 31 DeCeMBer 2013 in €‘000



Loans to credit institutions 167,473 118,768 4,975 30,634 0 321,850Loans to clients 1,198,311 424,232 1,009,606 1,925,176 1,847,218 6,404,543trading assets 0 5,360 1,214 18,954 1,680 27,208Financial assets - at fair value through profit or loss

301 0 14,600 132,217 8,105 155,223

Financial assets - available for sale 72,835 49,127 88,093 610,065 431,069 1,251,189

Financial assets – held to maturity 0 99,992 112,216 333,999 300,055 846,262

total assets 1,438,920 697,479 1,230,704 3,051,045 2,588,127 9,006,275

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the following members of the Board of Directors and the supervisory Board were active for BtV during 2013:

ChairmanConsul peter Gaugg – spokesman for the BoardMag. Matthias Moncher, Member of the Board of DirectorsGerhard Burtscher, Member of the Board of Directors (from 1 June 2013)Mag. Dietmar strigl, Member of the Board of Directors (up to 31 May 2013)

supervisory Board

Honorary presidentsHonorary Chairman Dr Hermann Bell, LinzCouncillor of Commerce i. r. Dr Gerhard Moser (deceased 30 May 2013), InnsbruckDr Heinrich treichl, Vienna

Chairman

Consul Kommerzialrat Chief executive Dr Franz Gasselsberger, MBa, Linz

DeputyConsul Kommerzialrat Chief executive Business school Graduate Dr Heimo Johannes penker, Klagenfurt

MembersMag. pascal Broschek, FieberbrunnDipl.-Ing. Johannes Collini, HohenemsFranz Josef Haslberger, Freising (D) (from 11 May 2012)univ.-prof. Dr Waldemar Jud, GrazDr Dietrich Karner, Viennara Dr andreas König, InnsbruckConsul General “Councillor of Commerce” Business school Graduate Dr Johann F. Kwizda, ViennaDr edgar oehler, Balgach (CH)Director Karl samstag, Vienna Councillor of CommerceHanno ulmer, Wolfurt

employee representativeHarald Gapp, Chairman of the Central Works Council, Innsbruckalfred Fabro, Deputy Chairman of the Works Council, WattensHarald praxmarer, Deputy Chairman of the Works Council, neustift im stubaitalstefan abenthung, GötzensBirgit Fritsche, nüzidersBettina Lob, Vils

Government commissionerGovernment commissioner privy councillor Dr erwin trawöger, InnsbruckDeputy: privy Councillor Dr elisabeth stocker, Innsbruck

44 BoDIes oF BtV aG


45 presentatIon oF HoLDInGs as at 31 DeCeMBer 2013

naMe oF CoMpanY anD reGIstereD oFFICe total capital

holding

Direct capital

holding

equity in € million 1

results in €‘0002

Date of conclusion

a) Affiliated companies1. Domestic financial institutions:

Gs Liegenschaftsverwaltungs GmbH, Vomp 100.00% 0.8 26 31 December 20132. other domestic companies:

BtV Beteiligungsholding GmbH, Innsbruck 100.00% 100.00% 113.2 992 30 november 2013BtV 2000 Beteiligungsverwaltungsgesellschaft m.b.H., Innsbruck

100.00% 63.3 989 30 november 2013

Beteiligungsholding 3000 GmbH, Innsbruck 100.00% 100.00% 7.4 39 30 november 2013Beteiligungsverwaltung 4000 GmbH, Innsbruck 100.00% 4.3 239 30 november 2013stadtforum tiefgaragenzufahrt GmbH, Innsbruck 100.00% 100.00% 0.0 –3 31 December 2013Mayrhofner Bergbahnen aktiengesellschaft, Mayrhofen 50.52% 60.3 4,093 30 november 2012

Freiraum I GmbH, Mayrhofen 50.52% 0.0 –37 30 november 2012KM Immobilienservice GmbH, Innsbruck 100.00% 0.0 –23 31 December 2012KM Immobilienprojekt IV GmbH, Innsbruck 100.00% 0.6 –3 31 December 2012Miniaturpark Bodensee GmbH, Meckenbeuren 100.00% 0.0 789 31 December 2012pV Management GmbH, Innsbruck 5 100.00% 100.00% 0.0 –78 31 october 2013C3 Logistik GmbH, Innsbruck 100.00% 0.1 –69 30 september 2013

3. other foreign companies:aG für energiebewusstes Bauen aGeB, staad 50.00% 0.2 34 30 June 2013KM Beteiligungsinvest aG, staad 100.00% 24.6 794 31 December 2012

as at 31 December 2013, the company had hold-ings in at least 20% of the shares in the following companies which are included in the Group ac-counts and are also insignificant as a whole:

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1 equity in the sense of section 229 of the austrian Commercial Code (uGB) plus untaxed reserves2 annual profit/loss after taxes on income, before transfer to reserves or application of results, for fiscal entities

and non-limited companies annual profit before taxes.



naMe oF CoMpanY anD reGIstereD oFFICe total capi-tal holding

Direct capital

holding

equity in € million 1

results in €‘0002

Date of conclusion

b) other companiesother domestic companies:Beteiligungsverwaltung Gesellschaft m.b.H., Linz 30.00% 30.00% 13.7 633 31 December 2013DreI-BanKen-eDV Gesellschaft m.b.H., Linz 30.00% 30.00% 3.5 –64 31 December 20133-Banken Beteiligung Gesellschaft m.b.H., Linz 30.00% 19.9 –1.422 31 December 2013sHs unternehmensberatung GmbH, Innsbruck 25.00% 1.0 448 31 December 2012sitzwohl in der Gilmschule GmbH, Innsbruck 25.71% -0.1 21 30 september 2013process engineering sMt GmbH, Dornbirn 32.63% 0.1 43 30 september 2013Montafoner Kristberg-Bahn silbertal Gesellschaft m.b.H., silbertal

20.64% 0.5 66 30 april 2013




Member of the Board of §Directors with responsibility for risk, process, It and cost management; the departments for finance and controlling, legal matters and investments and group audit; Compliance and money laundering.


Member of the Board, responsible for private client business in tyrol, Vorarlberg, Vienna and Italy; Corporate client business in tiroler oberland and unterland; Corpo-rate and private customer business in switzerland; Institutional Clients and Banks, Corporate audit; Com-pliance and money laundering.


Declaration by the statutory representatives pursuant to section 82 (4) and 87 (1) BörseG (stock exchange act)

We confirm that to the best of our knowledge the group accounts, drawn up in accordance with the statutory accounting standards provides a true picture of the assets, financial and profit situation of the group, that the management report presents the course of business, the results of business activ-ities and the situation of the group in a way which provides a true and fair view of the assets, financial and earnings situation of the group, and that the management report discloses all significant risks and uncertainties to which the group is exposed.

We confirm that to the best of our knowledge that the accounts of the parent company, drawn up in accordance with the statutory accounting stand-ards provides a true picture of the assets, financial and earnings situation of the company, that the management report presents the course of busi-ness, the results of business activities and the situa-tion of the company in a way which provides a true and fair view of the assets, financial and earnings situation of the company, and that the manage-ment report discloses all significant risks and uncertainties to which the company is exposed.






Member of the Board of Directors with responsibility for risk, process, It and cost management; the departments for finance and controlling, legal matters and investments and group audit; Compliance and money laundering.


Member of the Board, responsible for private client business in tyrol, Vorarlberg, Vienna and Italy; Corporate client business in tiroler oberland and unterland; Corpo-rate and private customer business in switzerland; Institutional Clients and Banks, Corporate audit; Compliance and money laundering.

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Audit Certificate

report on Group accounts We have audited the attached group accounts for

Bank für tirol und Vorarlberg aG aktiengesellschaft, Innsbruck,

audited for the financial year from 1 January to 31 December 2013 including the underlying book-keeping. This group financial statement includes the group balance sheet on 31 December 2013, the group profit and loss statement, the group cash flow statement and the statement of changes in the group equity for the financial year ending 31 December 2013, as well as the notes to the group accounts.

Legal representatives‘ responsibility for the group accounts and the book-keeping the legal representatives of the company are re-sponsible for the maintenance of the books for the group as well as for preparing the group accounts, which are to reflect a true picture of the assets, financial and earnings situation of the group, in accordance with the International Financial report-ing standards (IFrss), as applied in the eu. this responsibility includes: Design, implementation and enforcement of an internal control system, as required to support creation of the group accounts which present a true picture of the assets, financial and earnings situation of the group, so that these are free of any material misrepresentations, wheth-er due to deliberate or unintentional errors; the choice and application of appropriate accounting policies and valuation methods; the preparation of estimates which appear suitable taking existing circumstances into consideration.

responsibility of the group auditors and descrip-tion of the type and scope of the legal annual auditour responsibility consists of issuing an audit opinion on these group financial statements on the basis of our audit. We carried out our audit in accordance with the legal provisions which apply in austria and the Inter-national standards on auditing (Isas) issued by the International auditing and assurance standards Board (IaasB) of the International Federation of account-ants (IFaC). these principles require that we adhere to professional standards and plan and carry out the audit in such a manner that we have sufficient assur-ance to be able to form an opinion as to whether the group financial statements are free from any material misrepresentation.

an audit includes carrying out checks to provide audit evidence of amounts and other information provided in the group financial statements. The choice of audit checks is governed by the duty of judgement on the group account auditors taking into account their assessment of the risk of material misrepresentations being present, whether due to deliberate or unintentional errors. In undertaking this risk assessment, the group accounts auditor must also take into consideration the internal con-trol system, insofar as it affects the creation of the group financial statements and the presentation of a true picture of the assets, financial and earnings situation of the group, in order to determine suit-able audit checks to carry out appropriate to the circumstances, but not in order to provide an audit opinion on the effectiveness of the internal con-trols themselves within the group. the audit also includes an opinion on the appropriateness of the accounting policies and valuation methods applied and all material assessments made by the legal rep-resentatives, as well as an evaluation of the overall presentation of the group financial statements.We believe that we obtained sufficient and suitable verification with our audit, so that our audit provides a reasonably sound basis for our audit opinion.

report from independent auditors


audit opinion our audit did not lead to any objections. Based on the results of our audit, in our judgement the group financial statements are in accordance with legal requirements and provide a true and fair view of the assets and financial situation of the group as at 31 December 2013 as well as the earnings posi-tion of the group and the group‘s cash flows for the financial year from 1st January up to 31st Decem-ber 2012 in accordance with International Financial reporting standards (IFrss), as applied in the eu.

opinion on the Group Management report the group management report is to be audited ac-cording to the legal requirements as to whether it is in accordance with the group financial statements and whether the further information in the management report does not provided a misleading picture of the group situation. The audit certificate must also contain an opinion as to whether the consolidated manage-ment report is consistent with the consolidated finan-cial statements and whether the data are accurate, pursuant to section 243a uGB.

In our judgement the group management report is consistent with the group financial statements. The data are accurate, pursuant to section 243a uGB.


KpMG austria aGauditing and tax advisory company

Mag. ulrich pawlowski auditor

Mag. peter Humer, CIaauditor

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the supervisory Board has carried out the tasks required of it by the law and the company statutes while adhering to the regulations of the current version of the austrian Code of Corporate Governance. the Board of Directors reported regularly on the progress of business and the situation of the company and the group. In particular, the development of the economic environment as well as the implementation of the regulatory specification, emphasis on Basel III, were at the centre and were comprehensively discussed and debated at the meetings of the supervisory board and its committees. During the financial year, the supervi-sory board convened each quarter, whereby the Board of Directors has also been communicating outside the sessions of the supervisory board and its committees with the supervisory board in particular in relation to significant events.

Both the Working Committee and the Loans Commit-tee of the supervisory Board have continuously monitored the business events which required its approval. In addition, the auditing committee con-vened twice and has performed its legally required audit and monitoring tasks to the fullest extent, particularly in relation to the internal control system, the risk management system, the accounting process as well as the corporate governance report. the remuneration committee met as planned on one occasion and fully performed during the financial year the duties assigned to it especially through the Banking act, especially the passing, auditing and controlling of the principles of the remuneration policy as well as the measuring of the variable remuneration of the Mem-bers of the Board. the nomination committee pro-posed to the plenum of the supervisory board within the framework of a structured appointment process the appointment of Mr Gerhard Burtscher as an additional member of the board which was decided at the meeting of the supervisory board on 21 March 2013. the meetings and decisions of the committees of the supervisory board where reported to the plenum of the supervisory board at the respective subsequent meeting.

to sustainably ensure the professional and personal suitability of the members of the supervisory board as well as the management of BtV, the supervisory board has decided on a Fit & proper policy and was able to to ascertain during a reconciliation at the fourth session of the supervisory board the fulfilment of the require-ments set out therein by the members of the supervi-sory board. In implementing the Fit & proper policy, in addition to the information already provided within the framework of the meetings of the supervisory board and its committees, the members of the supervisory board have now also at their disposal specialist options for training and further professional development provided through third party experts.

the auditor of the financial statements, KpMG austria aG auditor and accounting Company, Innsbruck, has checked the book-keeping, the individual and the group financial statements as well as the individual and group management reports for the company. the audit conformed to the legal requirements and did not give rise to any objections. the financial statements are accompanied by an unqualified opinion.

at its meeting on 21.03.2013 the auditing Committee examined the individual and group annual accounts and the individual and group management report of the company and also the Corporate Governance report and recommended the findings from the annual accounts to the full meeting of the supervisory Board, in which regard this was reported to the full meeting of the supervisory Board accordingly.

the supervisory Board adopts the results of the audit, declares that it is in agreement with the financial statements presented by the Board of Directors including management report and approves the financial statements for 2012 for the company, which are thereby established as required by section 96 para 4 of the share act.

report from the supervisory board


the supervisory Board had available to it copies of the Financial statements and Management report, drawn up as required by the austrian company legal require-ments. the Financial statements show at 31st Decem-ber 2013 a true and fair picture of the capital and financial situation of the Bank für tirol und Vorarlberg aktiengesellschaft. a similar view for the time period 1st January up to 31 December 2013 is provided by the attached comments on the earnings situation. the audit carried out by KpMG austria aG auditing and accounting Company, Innsbruck, did not give rise to any objections.

the recommendation of the Board of Directors to pay out a dividend of €0.30 per share for the year 2012, i.e. €7,500,000.00 and to carry forward the residual profit is endorsed by the supervisory Board.

Innsbruck, 25 March 2014

the supervisory Board

Dr Franz Gasselsberger, MBa Chairman

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BtV Group - a 5-year overview

BaLanCe sHeet € million 2013 2012 2011 2010 2009

total assets 9,589 9,496 9,215 8,887 8,465Loans to Credit Institutions 322 467 282 235 291Loans to clients 6,405 6,387 6,214 5,940 5,559risk provisions –207 –194 –184 –165 –174Financial assets at fair value through profit or loss

155 203 203 226 176

Financial assets - available for sale 1,251 1,111 1,034 1,005 867Financial assets – held to maturity 846 788 909 965 1,012shares in at-equity valued companies 334 319 297 277 253Liabilities to credit institutions 1,753 1,812 1,601 1,795 1,424Liabilities to clients 5,428 5,395 5,373 4,881 4,984securitised debt 880 749 776 804 803subordinated capital 408 439 479 483 473equity 913 846 767 676 612primary funds 6,716 6,583 6,628 6,168 6,260Volume of securities held in deposit for customers 4,830 4,786 4,343 4,521 4,049

proFIt & Loss stateMent in € million 2013 2012 2011 2010 2009

net interest income 175.7 164.3 164.6 146.6 131.4Loan-loss provisions in the credit business –46.9 –39.9 –37.1 –42.1 –44.5net commission income 45.3 42.3 42.5 43.3 40.3trading income 1.0 3.2 0.6 2.8 4.5operating expenses –96.0 –92.8 –94.8 –90.9 –94.5Other operating profit –2.3 –2.4 –1.2 1.8 3.4Profit arising from financial assets – at fair value through profit or loss

2.5 7.8 –6.7 2.6 10.7

Profit arising from financial assets – available for sale 2.8 –8.5 –3.2 –1.2 0.1

Profit arising from financial assets – held to maturity –0.0 –3.8 0.0 –1.2 0.0

Annual net profit before tax 82.1 70.1 64.7 61.8 51.3Group net profit for the year 64.4 60.7 53.5 49.2 47.8Dividend paid by BtV aG 7.5 7.5 7.5 7.5 7.5


eQuItY as DeFIneD BY BWG (BanKInG aCt) in € million

2013 2012 2011 2010 2009

risk-adjusted assessment basis* 6,055 5,992 6,387 6,038 5,758Qualifying equity 964 995 935 853 800Core capital ratio in %* 13.33% 12.45% 11.22% 8.89% 7.89%total capital ratio in %* 15.93% 16.61% 14.63% 14.13% 13.90%surplus equity 480 516 424 370 340

CoMpanY KeY InDICators 2013 2012 2011 2010 2009

earnings per share in €* 2.58 2.44 2.16 1.98 1.92return on equity before tax 9.34% 8.69% 8.96% 9.59% 8.80%return on equity after tax 7.32% 7.52% 7.42% 7.63% 8.20%Cost/income ratio 43.3% 44.2% 45.6% 47.2% 53.7%risk/earnings ratio 26.7% 24.3% 22.5% 28.7% 33.8%average weighted number of employees (white collar)

766 779 790 794 862

number of branches 37 37 40 41 41

* the basis for assessment and therefore also the calcula-tion of the quotas were changed as can be seen on page 70. the values of the previous years where adjusted.

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3 Banks shareholder structure

BKs BanK BY VotInG rIGHts

oBerBanK BY VotInG rIGHts

32.54 % CaBo Beteiligungsgesellschaft m.b.H., Vienna

18.51% BKs Bank aG, Klagenfurt *)

2.21% Generali 3 Banken Holding aG, Vienna

19.36 % Minor shareholders


7.46 % uniCredit Bank austria aG, Vienna


19.54 % oberbank aG, Linz *)

3.11 % Wüstenrot Wohnungswirtschaft reg. Gen.m.b.H., salzburg

7.88 % Generali 3 Banken Holding aG, Vienna*)

19.65 % BtV aG, Innsbruck *)

12.39 % Minor shareholders

18.51% BtV aG, Innsbruck *)

5.13 % Wüstenrot Wohnungswirtschaft reg. Gen.m.b.H., salzburg *)

3.74 % employee holdings

0.33 % BKs-Belegschaftsbeteiligungsprivatstiftung

BtV sHareHoLDer struCture BY VotInG rIGHts


15.10 % BKs Bank aG, Klagenfurt *)

2.53 % Wüstenrot Wohnungswirtschaft reg. Gen.m.b.H., salzburg *)


14.69 % oberbank aG, Linz *)

15.12% Generali 3 Banken Holding aG, Wien *)



overview of 3 Banken Group – Group information

proFIt anD Loss in € million 2013 2012 2013 2012 2013 2012

net interest income 146.2 143.1 335.6 312.9 175.7 164.3Loan-loss provisions in the credit business –42.7 –38.6 –70.6 –59.8 –46.9 –39.9Commission income 45.4 44.4 114.6 108.2 45.3 42.3operating expenses –100.8 –100.8 –231.0 –225.9 –96.0 –92.8Annual net profit before tax 45.5 49.9 141.7 135.8 82.1 70.1Group net profit for the year 40.6 43.1 122.4 111.2 64.4 60.7

eQuItY as DeFIneD BY BWG in € million

Measurement basis 4,423.3 4,457.9 10,734.0 10,481.9 6,055.4 5,992.1equity 707.6 709.5 1,824.8 1,762.5 964.4 995.4

of which core capital (tier 1) 662.5 630.7 1,320.6 1,245.4 866.7 806.0surplus before operational risk 353.8 352.9 965.8 922.8 512.1 542.1surplus after operational risk 326.8 325.8 898.1 857.9 479.9 516.0Core capital ratio 13.92% 13.10% 12.30% 11.88% 13.33% 12.45%total capital ratio 16.00% 15.92% 17.00% 16.81% 15.93% 16.61%

nuMBer of resources

Weighted average payroll (white collar), excluding subsidiaries

910 930 2,001 2,020 766 779

number of branches 56 55 150 147 37 37

BKs Bank oberbank BtV

CoMpanY KeY InDICators in %

return on equity before tax 6.49% 7.48% 10.31% 10.59% 9.34% 8.69%return on equity after tax 5.79% 6.47% 8.91% 8.67% 7.32% 7.52%Cost/income ratio 54.3% 54.1% 52.1% 53.6% 43.3% 44.2%risk/earnings ratio 29.2% 27.0% 21.1% 19.1% 26.7% 24.3%

proFIt & Loss stateMent in € million

total assets 6,743.8 6,654.4 17,570.9 17,675.1 9,588.5 9,496.4Loans and advances to clients after loan loss provisions 4,874.2 4,794.2 11,317.1 10,877.0 6,197.4 6,193.0primary funds 4,597.5 4,362.4 12,250.4 11,607.9 6,715.9 6,582.9

of which savings deposits 1,741.2 1,797.9 3,352.1 3,380.1 1,175.8 1,272.9of which securitised debt including subordinated

capital813.9 816.6 2,224.4 2,208.8 1,288.3 1,187.8

equity 714.2 688.3 1,421.0 1,342.4 913.1 845.5Managed deposits 11,383.4 10,674.9 22,787.5 21,558.0 11,545.8 11,368.8

of which customer deposits 6,785.9 6,312.5 10,537.1 9,950.1 4,829.9 4,785.9

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Imprint

Bank für tirol und Vorarlberg aG aktiengesellschaftstadtforum 16020 Innsbruck

t +43/5 05 333-0F +43/5 05 333-1180sWIFt/BIC: BtVaat22routing no.: 16000Data processing register: 0018902Commercial register no.: 32.942wtax ID: atu 317 12 [email protected]

notesany reference in the company reports to a person (e.g. he, him) is intended to apply equally to women and men.

In the BtV company report there may be slightly differing values between tables or charts.

this report contains forward-looking statements relat-ing to the future performance of BtV. these state-ments reflect estimates which have been made on the basis of all information available to us on the reporting date. should the assumptions underlying such for-ward-looking statements prove incorrect, or should risks materialise to an extent not anticipated, actual results may vary from those expected at present.

Media owner (publisher)Bank für tirol und Vorarlberg aGstadtforum 16020 Innsbruck

DesignBtV Marketing & Communication (page 1–22)Mag. Barbara riesner

BtV Finanzen & Controlling (pages 23–139)Ma Daniel stöckl-LeitnerMag. Hanna MeranerMa (Ms) reinhard auer

DesignBtV Marketing & CommunicationMag. (FH) nicola Dander

photographsnicolò Degiorgis (pages 3–5)sonja Braas (page 8)Lisa Mathis (pages 8 and 10)Wolfgang C. retter (page 9)DMC 01 Consulting & Development GmbH (design page 9, advertisement page 9)

printingaristos Druckzentrum GmbH, Hall in tirol

Final version5. March 2014


TIROLSCHWEIZ

SÜDTIROL

VENETO

BAYERNAUGSBURG

STUTTGART

MÜNCHEN

RAVENSBURG

MEMMINGEN

STAAD

BADEN-WÜRTTEMBERG

VBG

WIEN

INNSBRUCK



31.12.2013 31.12.2012* change in %




31.12.2013 31.12.2012 change in %



6,7161,1761,288

6,5831,2731,188

+2.0 %–7.6 %+8.5 %



31.12.2013 31.12.2012 change in %


964867

995806

–3.1 %+7.5 %



31.12.2013 31.12.2012* change in %-pp


resources number

31.12.2013 31.12.2012 change number

























Bavaria




Baden-Württemberg



btv headquarters












switzerland












































adresses









TIROLSCHWEIZ

SÜDTIROL

VENETO

BAYERNAUGSBURG

STUTTGART

MÜNCHEN

RAVENSBURG

MEMMINGEN

STAAD

BADEN-WÜRTTEMBERG

VBG

WIEN

INNSBRUCK



31.12.2013 31.12.2012* change in %




31.12.2013 31.12.2012 change in %



6,7161,1761,288

6,5831,2731,188

+2.0 %–7.6 %+8.5 %



31.12.2013 31.12.2012 change in %


964867

995806

–3.1 %+7.5 %



31.12.2013 31.12.2012* change in %-pp


resources number

31.12.2013 31.12.2012 change number

























Bavaria




Baden-Württemberg



btv headquarters












switzerland












































adresses









VERTRAUEN.

GESCHÄFTSBERICHT 2013

GES

CH

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SBER

ICH

T 20

13Ba

nk fü

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l und

Vor

arlb

erg

AG

KENNZAHLEN 2013ADRESSEN

Documents

BTV VIER LÄNDER BANK - TRUST. · 2020. 9. 17. · The BTV Group at a glance BALANCE SHEET in EUR 000 000 31.12.2013 31.12.2012 C hange in % Total assets 9,589 9,496 +1.0 % Loans