Bank Austria Creditanstalt Ljubljana

BA-CA Ljubljana was successful in maintaining its market share of 6.5% in 2006 and even improved its ranking to fourth place. Total revenues after net writedowns of loans increased year on year by 15%; simultaneously administrative expenses rose by 25% due to costs related to the adoption of the euro. In spite of this, the profit before tax still rose by 3% to SIT 3.5 bn and total assets increased by 16% to SIT 524 bn.

Retail customers:

In 2006, the bank started an initiative to improve sales productivity and opened a new branch in Trbovlje; the Private Banking segment was repositioned by way of new products and a new range of services.

Total revenues after net writedowns of loans in the retail segment increased by 35%. The largest contribution came from mortgage loans. The bank’s market share in this sub-segment rose by 3% to over 14%. The market share of loans increased by 1% to 7%, that of deposits remained stable at 2%.

Corporate customers:

BA-CA Ljubljana is market leader in the multinational customer segment and has recorded particular success in the area of hedging and other treasury products. It is the only bank in Slovenia which can provide major national and international corporate customers with comprehensive cash management services.

There continues to be growing business potential in real estate finance and project finance. Revenues in this segment rose by over 36%.

In the corporate banking segment the bank has a market share of 7% in lending business and 9% in deposits.

International Markets:

In 2006 BA-CA Ljubljana established itself as the leading provider of interest-rate and exchange-rate hedging products for Slovenian corporate customers; it is also the market leader in custody business with foreign investors. At the end of 2006, assets under custody totalled SIT 211 bn.

The bank was elected “Best Agent Bank in Slovenia 2006” by Global Custodian magazine.

Outlook:

Following the successful introduction of the euro, the bank will concentrate on active sales and cross-selling in 2007 as well as on profitable growth, which will be supported by innovative products such as structured deposits and cooperation agreements with insurance companies.