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A significant number of units are being added to the CEE Division now that BA-CA has assumed the sub-holding company function. The inclusion of new, dynamic, and in some cases large countries, boosts our growth potential. The consolidation of the banking subsidiaries of UniCredit and HVB in Croatia, the Czech Republic, Slovakia, Bulgaria, Romania, the Baltic countries and the heavily populated countries of Turkey and Russia, has markedly increased the size of operations, although HVB Splitska banka and Bank BPH had to be sold to comply with competition regulations and on account of unforeseeable developments. A comparison of the new group of consolidated companies after the Group-internal transfer of units to BA-CA in pro forma financial statements for 2006 with the 2006 financial statements adjusted for one-off effects, i.e. capital gains from disposals (including HVB Splitska banka and Bank BPH, which were not consolidated for the entire financial year) reveals a significant rise of around 20% in BA-CA’s profit before tax.
Aside from the size effect, the additional markets for which BA-CA is now also responsible include large and dynamic countries such as Russia and Turkey with considerable growth potential. This will increase BA-CA’s opportunities for growth whilst also having an impact on investment requirements and the bank’s risk profile.