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2006 saw extensive integration activities within UniCredit Group, especially in the areas of organisation and IT. To manage and coordinate all integration efforts within
BA-CA, we set up a regional Integration Office which will continue to steer and monitor major integration activities in close cooperation with the Milan-based Integration Office in 2007.
Based on the new divisional structure, which was implemented in BA-CA within less than 4 months, and as an essential part of the Global Banking Services Division at holding company level, we have cross-divisional and cross-border responsibility for Austria and the countries in Central and Eastern Europe.
Our mission as preferred provider of banking services to the legal entities of UniCredit Group is to ensure, in cooperation with the GBS Division at holding company level, the highest possible degree of efficiency and added value in our IT, back office, sourcing and real estate activities. Moreover, we are working to improve the overall organisation and related processes within the Group in terms of quality and quantity on an ongoing basis. In this context it is necessary to further reduce costs in the Group with due regard to full transparency of the services provided and the related costs.
In 2006, our joint efforts focused on further optimising organisational arrangements, back-office process execution and all administrative and settlement activities. Closer attention to efficiency in settlement, processes and IT, as well as stringent budget management, resulted in a cost reduction of € 67.9 m or 9.2% in the GBS Division in 2006. The most significant cost reductions were achieved in IT, real estate and administration services. In line with the UniCredit Group structure, cost management for all non-HR costs was combined within GBS in 2006. The introduction and use of iFaber, the Group-wide electronic auction platform, for all procurement activities generated additional effects (new suppliers, cost savings, transparency) with regard to cost-optimised procurement using synergies based on quantities, procurement markets, procurement processes and transaction costs.