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The assessment basis pursuant to the Austrian Banking Act (banking book) declined by € 2.1 bn (– 2.8 %) to € 73.1 bn compared with the year-end 2005 figure, mainly as a result of the sale of Bank BPH and of HVB Splitska banka. A large part of this decrease was offset by business expansion in Austria and volume growth at CEE banking subsidiaries as well as rising exchange rates.The capital requirement for the banking book decreased by € 170 m compared with year-end 2005.
In 2006, net capital resources rose by € 1.6 bn or 17.7 % to € 10.8 bn; mainly because of allocations to the fund for general banking risks. Supplementary elements were lower and deductions were higher.
As the assessment basis declined and capital components increased, the Tier 1 capital ratio rose from 8.29 % to 11.62 % and the total capital ratio increased from 12.16 % to 14.73 %.