E: BKS Bank Continuing on the Well-Proven Course
19.08.2011
The crisis in public finances, the political unrest in the Near East and in North Africa, the uncertainty concerning the effects of the natural disaster in Japan as well as disagreements in finding a solution for the crisis in Greece have all shaped the first half of 2011. “Our institution stands, as always, on a solid foundation and our low-risk business policies provide the stability to ensure that it can’t really be rocked, not even by the prolonged quaking in the financial markets. We continue to achieve consistent results and to use this time to position ourselves for even more strength”, says BKS CEO Heimo Penker.
Net income for the period and balance sheet total rise
The results and the balance sheet figures of the first half of 2011 make it evident that the sustainable business policies consistently practiced externally and internally have really paid off. The net income before taxes for the period at approx. € 24,3 m is 10,6% above the same as at June 30, 2010 (€ 22,0 m), the balance sheet total increased further to € 6,6 b (€ 6,2 b as at December 31, 2010).
Growth in loans
The loan volume was approx. € 4,7 b at the half year 2011, which corresponds to a plus of about € 70 m in comparison to December 31, 2010. During the current year we allocated € 22,5 m for credit risk. The total risk provisions as at June 30, 2011 was approx. € 162 m.
Primary deposits on the increase
The primary deposits were approx. € 4,4 b as at June 30, 2011 – clearly higher than the value at the year end. The savings deposits remained constantly high at approx. € 1,8 b.
The most important income ratios also developed positively. The net interest income before risk provisions grew 4,2% to approx. € 70,8 m. The risk provisioning consolidated in the first half of 2011. In comparison to last year, the value as at June 30, 2011 reflected a reduction of € 3,3 m.
Foreign markets
“The development in the foreign markets is also satisfactory; we are sticking to our step-by-step international course of growth”, said Chairman of the BKS Management Board, Dr. Herta Stockbauer.
Slovenia
Slovenia is the international market where BKS Bank has operated the longest and since then it has become one of the most important markets for BKS Bank.
Altogether BKS Bank Group employed 62 employees in Slovenia as at June 30, 2011, of this 9 in the leasing subsidiary. As at June 30, 2011, the 4 Slovenian branches were able to increase their financing volume to € 455,9 m. (as at December 31, 2010 rd. € 428,7 m) The business volume of the Leasing business BKS-leasing d.o.o. amounted to approx. € 65 m as at June 30, 2011.
Croatia
BKS Bank is represented in Croatia in the leasing business with the BKS Leasing Croatia d.o.o. – as well as in the banking business with the BKS Bank d.d. The BKS leasing Croatia d.o.o. achieved a leasing volume of € 47,3 m at the half-year with 11 employees. The BKS Bank d.d. employed 52 staff. The loan volume increased by about 2% to € 73,5 m as at June 30, 2011.
Slovakia
We have been doing business in the branch in Bratislava with 12 employees since March of this year. During this time we have already been able to generate a loan volume of about € 9,6 m. The leasing business BKS-Leasing a.s. generated a business volume of about € 43,0 m with 21 employees.
Interesting Happenings during the 1st Half-Year 2011
Expansion in Vienna
The fourth branch was opened recently on Wiedner Hauptstraße in the capital city. The existing branch network will be even further increased. The next step will be opening a branch on Billrothstraße.
Excellent customer service
The BKS Bank received the Recommender-Award 2011 from the independent „Finanz-Marketing Verband Österreich“ (FMVÖ) at the end of May and achieved the rating “Excellent Customer Orientation” in the category “Regional and Special Banks”. The evaluation was carried out via approx. 6.000 interviews through a telephone survey done by the market research company Telemark.
CSR – activities
The Sustainability Award initiated by the BKS Bank, TRIGOS, celebrated its 5th anniversary this year in Carinthia. The TRIGOS is also an important part of the Styrian business world and took place for the 4th time this year. A total of 9 TRIGOS award winners were celebrated in the spring of 2011. They were recognized for their extraordinary engagement in the area of sustainable economic activity.
BKS Bank is healthy through and through
The successful and highly acclaimed project „Healthy Through and Through“ has been continued internally. This year, roughly 200 employees have taken part in the special program, “Vital Through and Through”. The main target of this program is nutrition.
