Austrian Anadi Bank increases its result and strengthens its capital base

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  • POA increased by 22 % to 2.8 million Euros
  • Profit increases to 3.7 million Euros in spite of difficult economic environment
  • Increased core capital ratio of 14.4 % confirms strong capital base
  • Well positioned for the future thanks to conservative provision
     

Austrian Anadi Bank continued on its successful course in 2015, increasing both earnings and equity in spite of a difficult economic environment. The POA increased by 22 % to 2.8 million Euros (2014: 2.3 million Euros), the profit after taxes increased to 3.7 million Euros (2014: 0.6 million Euros), and the operating result increased to 23.5 million Euros (2014: 10.2 million Euros). With a core capital ratio of 14.4 % (2014: 11.51 %), additional provisions and a cautious approach, the Bank is optimally equipped to implement its strategy for the future.

In light of the patchy development of the economy, the events surrounding Heta and the Province of Carinthia, and a challenging environment for the bank sector, Austrian Anadi Bank achieved a notable result in 2015. CEO Christoph Raninger: “In spite of extremely adverse framework conditions, we have made a major further step forwards, significantly increasing our profits and decisively strengthening our capital base. Austrian Anadi Bank is fit and healthy and has an excellent capital base.”

Profitability and equity ratio increased
The balance sheet result confirms the financial strength of Austrian Anadi Bank. Even in the most difficult year to date of its short existence, it has achieved a further increase in profitability. The profit from ordinary activity was increased to 2.8 million Euros (2014: 2.3 million Euros). The profit after taxes rose in 2015 to 3.7 million Euros (2014: 0.6 million Euros). This pleasing development was largely due to a stable result from core business and positive effects resulting from a reduction in high-interest bonds and release of the associated hedging instruments. At the same time the equity base has been significantly strengthened by consistent balance sheet measures, with the core capital ratio increasing to 14.4 % (2014: 11.51 %), and the equity cover increasing to 187 % (2014: 153 %). This places Austrian Anadi Bank not only well above the regulatory minimum requirements, but also in the top rank of Austrian banks on a cross-comparison.

Equipped to deal with the challenges posed by Heta
In Carinthia, in addition to the general challenges faced by the bank sector (particularly the continuing low-interest environment), the effects of the Heta moratorium on Pfandbriefbank AG have had to be dealt with. Austrian Anadi Bank kept to its financing commitment in the amount of 77 million Euros and has formed provisions in a total amount of 37.5 million Euros for this purpose. For the financial year 2015, this meant an increase of 21.8 million by comparison with the previous year. Austrian Anadi Bank AG has thus already represented the full extent of the Heta “haircut” as required by the FMA in its 2015 balance sheet. “We have carefully and in a timely manner prepared ours elves for all conceivable scenarios, and have made provision on a conservative basis. This is already paying off. In spite of the Heta “baggage”, we are able to continue on our successful path,” says Raninger.

Three strong pillars at home and abroad
Over the last year Austrian Anadi Bank has created the basis for the implementation of its strategy for the future. Retail Banking, Corporate Banking and Public Finance are the three essential pillars of its business model. “We want to specialise in these areas and establish a permanent position as an Austrian bank with a clearprofile,” says Christoph Raninger. This means the implementation of a modern, mobile approach to banking that promises a new, contemporary access to bank business through a combination of branch banking, Internetbankign and mobile sales. The restructuring of the branch network in the direction of modern branches in high-population areas is proceeding according to plan. Anew branch has been opened in Graz and a site has been found for a new branch in Vienna. At the same time the expansion of our biggest branch - Internet banking - is progressing, with the first online functionalities successfully implemented. The setting up of the new concept of mobile sales is also running according to plan. Our positioning as a specialist “house bank” for medium-sized companies focused on commerce and production, and for import/export oriented companies, is proving correct. In particular with its bridge function to the growth market in India, Anadi Bank occupies a unique position in the Austrian market.

Outlook for 2016: Cautious growth with awareness of risks
In light of the difficult market conditions, Austrian Anadi Bank continues to operate cautious balance sheet management, seeking growth on a risk-aware basis with selected business partners, with primary funds representing the most important source of financing. Sanjeev Kanoria, the 100% owner of Austrian Anadi Bank, reaffirms his commitment to the company: “Our investment in the Bank is proving to be the right decision. We are here to stay. We see great potential in Austrian Anadi Bank and we want to provide effective support on its path of further growth.”

in EUR Mio. (gerundet) 2015 2014
Balance sheet total 3,062 3,207
Primary funds (customer deposits, own issues) 2,277 2,494
Loan volume 2,264 2,537
 
Net interest income 66 41
Net commission result 14 15
Operating income 84 61
Operating expenses -61 -50
Operating result 23 10
Profit from ordinary activity (POA) 3 2
Result after taxes 4 1
 
Core capital ratio (T1) 14.40% 11.51%
Own funds cover / cover ratio 187.31% 153.27%
Cost-Income-Ratio (CIR) 72.07% 83.24%
Net interest margin 2.10% 1.28%

 

Media queries to be addressed to:

Bernhard Hudik
Pressekontakt Austrian Anadi Bank

Telephon: +43 (0) 664 922 72 71
bernhard.hudik@klar.net
presse@anadibank.com