Bank Austria Creditanstalt - Annual Report 2006

Download table (.xls)

€ M	2006	2005	CHANGE*	ADJUSTED*
Net interest income	73	30	43
Net non-interest income	50	3	47
Total revenues	123	33	90
Operating expenses	–154	–61	–93
Operating profit	–31	–27	–3
Net writedowns of loans	–2	2	–4
Net income from investments	2,289	–13	2,301
Integration costs	–203	–9	–194
Profit before tax	1,960	–68	2,027

One-off effects in 2006: net income from investments: +€ 2,267 m (capital gains on the sale of HVB Splitska banka, Bank BPH and subsidiaries of PIA in Hungary and Croatia); integration costs (restructuring provision for Austrian customer business): –€ 200 m.
*	Percentage rates of changes not meaningful

The Corporate Center completes segment reporting. It comprises important bank functions including the CEO, CFO and CRO support services and Group Banking Services (GBS). GBS covers back-office functions such as Administration Services (AS) and Banking Transactions Services, information technology with the WAVE systems firm as well as real estate and facility management and other services.

The Corporate Center also includes equity interest management, which contributed to the improvement in net interest income through dividend income from investments in unconsolidated companies. 2006 was a successful year for our subsidiary in the Cayman Islands and accounted for most of the strong increase in non-interest income. Net income from investments in the Corporate Center reflects a large part of capital gains on sales effected in 2006 in connection with integration in the divisional structure of UniCredit Group: the total figure was € 2,267 m. The capital gains and the restructuring provisions of € 200 m for Austrian customer business, reflected in integration costs, were the main factors determining the Corporate Center segment result.