E: BKS Bank Continues on Solid Ground
20.08.2010
„Our house is standing on a solid foundation. Our historic long-term, low-risk business policy is making sure that the persistent and continuing earthquake on the financial markets and in the domestic economy can’t really shake us. We continue to report good results even during the lasting crisis and are able to use this time to position ourselves for even more effectiveness”, said CEO Heimo Penker.
Two important restructuring processes which were initiated last year – the centralization of corporate loan administration and the relocation of self-employed and small business customers from the corporate customer area into the private customer area – were completed on June 30, 2010. “Both measures increase the service quality for our customers. Our efficiency has also increased through the new processes. Our account managers have fewer administrative tasks now and because of this, they have more time for customer contact.” In addition to the organizational changes, there was also a personnel change: As of September 1, 2010, Dieter Kraßnitzer, head of Internal Auditing, will become the third member of the Management Board. His field of activity will include risk steering, compliance and IT.
BKS Bank is healthy through and through
The BKS Bank as a group currently employs 869 employees in 56 branches and the BKS Bank is deeply involved with all of them. For example, the health care program is dedicated this year to cardio-vascular issues. True to the motto “With heart through the bank”, the employees were able to learn their own “heart-age” and will be able to take part in first-aid training in fall. Here they’ll learn how to operate a defibrillator. “We have placed defibrillators in our largest offices because they greatly increase the chances of surviving a heart attack”, said Penker. Health Minister Alois Stöger awarded BKS Bank the “Seal of Approval” for workplace health promotion this year.
Net income for the period and balance sheet total increasing
The result and the balance sheet figures of the first half year 2010 are proof that our internally and externally sustainably lived business policy is paying off. The net income for the period before taxes at € 22,0 m is 11,9% over the result from June 30, 2009 (€ 19,7 m), the balance sheet total increased 1% to € 6,4 billion after € 6,3 billion as at Dec. 31, 2009.
„In light of present circumstances, we are satisfied with these developments. The economic recovery is only lightly noticeable; the development of the euro has given the export economy tail wind. Nevertheless, companies and private customers remain cautious and postpone many things”, said Penker.
Growth in loans and savings deposits
BKS was nonetheless able to continue growing in the important positions of loans to customers and savings deposits. The loan volume was € 4,7 billion at the half year, which corresponds to a plus of 4,8% since the end of 2009. “Since a bit more than three-fourths of our loan portfolio is granted to corporate customers, we have reserves for credit risk provisions of € 25,8 m (June 30, 2009: € 18,8 m), as is appropriate for the economic situation. The savings deposits at € 1,9 billion are pushing the 2 billion euro level. “We’re pleased about the trust our customers have in our institution; the savings deposits are one of our most important refinancing instruments.”
The most important income ratios also developed positively. “The net interest income before risk provisions grew 6,5% to € 67,9 m. The increased risk provisioning hit here, so that the net interest income after risk provisioning of € 42,1 m is behind the comparable value of the last year”, said Penker. The net commission income increased 15,0% to € 22,1 m. This satisfying growth is due to income increase in foreign payment transactions, in securities and in the loan provisions.” At the same time, the administrative expenses of € 44,5 m (+2,9%) remained low, so that a good net income for the period of € 22,0 m could be realized. The development in foreign markets is also satisfying; the step by step international growth course will be continued.
Slovenia: more loans were granted
„We recently opened an additional branch in Ljubljana, our office in Maribor will move to a larger building in fall and we’ve been connected directly to the stock exchange in Ljubljana since the beginning of the year”, said Herta Stockbauer, Chairman of the BKS Management Board, of the growth course of the BKS Bank in Slovenia, one of the most important foreign markets. The financing business is still the most important area for the BKS Bank in Slovenia. The granted loan volume from the four Slovenian branches is € 433,0 m, which corresponds to an increase of € 19 m since Dec. 31, 2009. Including the Cross Border financing, the loan volume for the Slovenian market is € 560 m.
In addition to the bank branches, the BKS Bank also has a leasing company in Slovenia. With a leasing volume of € 65,6 m, the BKS-Leasing d.o.o. remains an integral part of the Slovenian leasing market.
Croatia: capital increase allows growth
The product spectrum for private customers of the BKS Bank subsidiary BKS Bank d.d. was increased during the first quarter of 2010. “Our new products, which range from salary accounts, credit cards and insurances all the way to home building financing, are already enjoying wide acceptance from our customers. The BKS Bank d.d. was able to increase the balance sheet total in the first half year 2010 from approx. € 81,0 m to approx. € 98,0 m”, said Stockbauer. Before introducing the new products, the BKS Bank d.d. concentrated mainly on financing for companies. The loan volume granted by the BKS Bank d.d. amounts to € 63,9 m. “Now we have a wider basis, which on the one hand will speed up growth and on the other, will help distribute risk better”, said Stockbauer. “In order to continue growth, a capital increase from 60 to 120 m Kuna was decided on before June 30 and was implemented in July. During the reporting period, the leasing subsidiary BKS-leasing Croatia do.o. employed 9 people and realized a leasing volume of € 54,0 m.
Slovakia: Preparations for a bank branch are on schedule
“Our leasing-company BKS-Leasing a.s. was able to hold the leasing volume at a constant level. It realized a business volume of € 48,5 m and employed 26 persons”, said the Chairman of the Board. The preparations for entering the Slovakian banking business are also on target. “The application process is in progress, we already have suitable premises, and the first employees have been hired. We are convinced that we will be able to get our first Slovakian bank branch up and running in the first half of 2011”, said Stockbauer.
Further information:
Ms. Petra Ibounig-Eixelsberger
BKS Bank Public Relations
Tel.:+43 463/5858-104, Mobile: +43 664/80 55 67 194
E-Mail: petra.ibounig@bks.at
