Capital resources pursuant to the Austrian Banking Act

In 2004, the assessment basis pursuant to the Austrian Banking Act (banking book) increased by a total of € 5.3 bn or 8.1% to € 70.9 bn, largely a result of the higher business volumes of CEE banking subsidiaries (and supported by rising exchange rates). Private customer business also recorded strong growth, while business with corporate customers expanded at a moderate pace. The capital requirement was consequently € 0.4 bn above the level at year-end 2003.

In 2004, net capital resources rose by € 185 m (+2.2%) to € 8.8 bn. The increase of € 444 m (+8.7%) in Tier 1 capital to € 5.6 bn resulted mainly from the retention of profits and higher exchange rates. In addition, capital resources were further strengthened by the issuance of hybrid Tier 1 capital in the amount of € 250 m in the fourth quarter of 2004. Various consolidation effects had an offsetting impact.

As Tier 1 capital rose at a slightly higher rate than the assessment basis, the Tier 1 capital ratio increased moderately from 7.82% to 7.85%. The total capital ratio declined from 13.10% to 12.37%.