The Keys to Growth and Protection.
Our path is guided by new and ever more complex rules and regulations; we are confronted with challenging transactions and administrative procedures on a daily basis. It is time to take stock.
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Symbiosis of competence and trust. Harmony between rider and horse – and a perfect performance – are based on trust. As an independent private bank we rely on our customers’ trust in order to do what we
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can do best: invest their assets according to their individual needs, to protect and grow their wealth. With no risky manoeuvres. We focus on knowledge and experience.
Focusing the attention. Universally educated scholars, like Goethe and Humboldt, who had all the available knowledge of their times, are a past phenomenon. In today’s world experts and specialists are needed. People and institutions who can con-
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centrate on one field with undivided attention. Who have deep knowledge and exceptional skills and perform their tasks to perfection. Just like the dancers of the Russian State Ballet – or like Australian Rugby players.
Building and maintaining networks. One person alone can achieve great things. But in cooperation with competent partners we can do even better and build on the safety net provided by a well functioning platform. The trusting and mutually focused coopera-
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tion with our international business partners, partner banks and intermediaries worldwide creates an extensive knowledge and performance network, which our most demanding clients rely on.
Private in the true sense of the word.
Tailor-made solutions.
Euram Bank is completely privately owned. But not only that: The owners take an active hand in the bank’s daily business, thus raising the game to higher levels of understanding and trust between our entrepreneurial clients and us.
We meet our customers’ objectives with absolute independence and with professional competence in
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• Private Banking • Asset Management • Corporate Finance • Card Payment Services
2011/2012 Annual Report European American Investment Bank AG
Foreword by the Chief Executive Officer When the financial industry continues being perceived as complex and opaque, simple and transparent business approaches win. Global securities markets consistently reward conservative, wealth preserving, investment strategies – a philosophy which we at Euram Bank have successfully implemented for our clients since inception. In the past few years we have focused our strategy on strengthening our core businesses Private Banking, Asset Management and Corporate Finance in our geographic region of Central and Eastern Europe. In addition, we are expanding our youngest division Card Payment Services, implementing our fully developed innovative card based payment solutions.
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In pursuit of our ambitious goals, we completed the restructuring with the closure of our Monaco and Dubai subsidiaries, and the successful sale of our British concierge service company, WhiteConcierge Limited – transformed during our time of ownership into the undisputed quality leader and most profitable industry player. These steps significantly increased our capital base and strengthened our proven business model, now completely aligned with the needs of our entrepreneurial clients. As a niche player we achieve sustainable, profitable growth through strong, active partnerships and strategic alliances which extend our geographical reach. This in-
cludes shared corporate finance mandates, successful cooperation with other private banks, and global alliances in the field of card based payment systems, where Euram Bank contributes its specialized competencies and innovation skill to a global partnership. We look forward to continuing our fruitful cooperation with you, our clients and business partners.
Viktor Popovic Chief Executive Officer November 2012
Corporate Bodies
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Supervisory Board Dr. Erik Max Michael Obermayer – Chairman Adolf Walter Höllmer – Vice chairman Dkfm. Senta Penner
Viktor Popovic
Managing Board Viktor Popovic Manfred Huber Johannes Langer Manfred Huber
Johannes Langer
Management Report 1. B usiness Development and Economic Situation Business Model European American Investment Bank Aktiengesellschaft (“Euram Bank") is an Austrian bank specializing in Private Banking, Asset Management, Corporate Finance and Card Payment Services. Our customers are mainly wealthy international private clients and entrepreneurs, as well as established institutional investors. Our highly qualified employees come from 9 different nations and reflect Euram Bank's openminded corporate culture. Euram Bank is 100% privately owned. The majority is held by executives and members of their families together with financial investors, a proven and traditional model, ensuring a high level of continuity and commitment for the bank and its customers.
Business Development In the second half of 2011, the economic crisis dramatically demonstrated the structural weaknesses of some peripheral countries and the necessity to further develop
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the architecture of the Euro zone. In the past the lack of risk premiums for public debt induced many countries to spend beyond their means and created a growing gap in the competitiveness of the national economies in Europe thus adversely affecting the confidence in their ability to repay debts. The ensuing rapid increase in interest rate spreads for government bonds of overindebted Euro countries exacerbated the pressure for rapid reforms. The crisis in the financial sector could not be overcome either, as receivables of some systemically relevant banks towards countries in the Euro zone affected their credit standing. Euram Bank had to give up its intention to develop Euram Bank Asia Limited as a center of competence for its corporate finance activities and for private banking business in the “Middle East". Euram Bank would have had to acquire the 49% share of the co-owner in Euram Bank Asia Limited, Pan Asia Advisors Limited, with whom it was impossible to reach agreement. While Euram Bank Asia Limited had been able to distribute very high dividends relative to capital invested during its first two fiscal years (fiscal year 2009/2010: EUR 3.1 million, fiscal year 2010/2011:
EUR 2 million), fiscal year 2011/2012 Bank. That business model supported Inclosed with a loss of EUR 1.6 million. dian companies in the issuance of Global Depositary Receipts on the Luxembourg Thanks to the experience and commitment Stock Exchange. Due to the underlying of its employees, Euram Bank was able to structure (100% collateralization of lendcope with these challenges. Despite very ings by deposits and securities), the ending difficult market conditions, we not only of that business materially affects the balpreserved, but even continuously increased ance sheet total. our clients' assets, achieving outstanding results both in our in-house funds and our Euram Bank's results proved satisfactory managed portfolios. Card Payment Servic- in the fiscal year 2011/2012. The operating es became very profitable after a success- income amounted to EUR 13.9 million ful internal restructuring in 2010, and a (June 30, 2011: EUR 15.1 million), being long prepared corporate finance transac- 8.3% lower compared to last year, mainly tion was successfully closed in the fiscal due to a decline in net interest income to year 2011/2012. EUR 3.5 million (June 30, 2011: EUR 4.6 million), also as a result of ending The balance sheet total as of June 30, 2012 the above mentioned business model. Opamounted to EUR 377 million, which erating expenses amounted to EUR 11 milis a decrease of 19.75% on last year lion (June 30, 2011: EUR 10.5 million), the (June 30, 2011: EUR 469.7 million). Re- operating result decreased to EUR 2.8 milceivables from customers declined by lion (June 30, 2011: EUR 4.7 million). 26.8% to EUR 244.5 million on last year (June 30, 2011: EUR 334.7 million), li- Value adjustments for receivables amountabilities to customers were also down ed to EUR 440 thousand (June 30, 2011: 19% to EUR 351.3 million (June 30, 2011: EUR 2.2 million) – one receivable from a EUR 433.7 million) on last year. These de- customer was written off, another was clines are mainly caused by our decision provisioned individually. in the fall of 2011 to end a business model realized in cooperation with Euram Bank Value adjustments for securities and for Asia Limited, a 51% subsidiary of Euram investments and shares in affiliated com-
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panies amounted to EUR 912 thousand (June 30, 2011: EUR 389 thousand), the value adjustment of our investment in Euram Bank Asia Limited being the main factor. As a result, profit from ordinary activities amounted to EUR 1.5 million (June 30, 2011: EUR 2.1 million).
Financial and Non-financial Key Performance Indicators Euram Bank's capital resources continue to be excellent, the revenue reserve was increased by EUR 0.5 million in the fiscal year 2011/2012. Eligible capital pursuant to Section 23 of the Banking Act (BWG) amounted to EUR 15.2 million (June 30, 2011: EUR 14.6 million) and thus exceeded by far the capital requirement of EUR 6.1 million (June 30, 2011: EUR 5.6 million). The equity ratio amounted to 30.6% (June 30, 2011: 34.7%) and thus by far exceeded the statutory minimum level. Own funds consist entirely of Tier 1 capital. The cost/income ratio amounted to 79.7%, compared to 69.1% last year.
0.4 million. Once a relevant resolution has been adopted at the shareholders' meeting in November 2012, Euram Bank intends to distribute a dividend of EUR 0.4 million, i.e. 2.63% of the capital of EUR 15,228 million.
Material Events After the Balance Sheet Date as of June 30, 2012 On July 30, 2012, Euram Bank made a request with the Dubai Financial Services Agency (DFSA) for voluntary surrender of Euram Bank Asia Limited's license. On September 5, 2012, a resolution was adopted for the voluntary liquidation of Euram Bank Asia Limited. The full impact is already recognized in the profit and loss statement as of June 30, 2012.
On September 27, 2012, Euram Bank sold its 53.5% share in WhiteConcierge Limited for an equivalent of EUR 5.8 million, the book value being EUR 0.8 million. The share purchase agreement contains conditions precedent, closing is agreed to take place until October 31, 2012. In 2008, Euram Bank and a business partner had collectively purchased the concierge serIn the fiscal year 2011/2012 Euram Bank vice from “Travelex", and developed it into generated a distributable profit of EUR a leading provider of concierge services. In
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subsequent years, WhiteConcierge Limited gained a reputation as a highly valued expert in this very specialized sector. Business clients in 24 countries are supported from its base in the United Kingdom. Expert teams coming from 22 nations offer a unique combination of local expertise and cultural understanding.
2. Forecast Development and Risks Outlook for 2012/2013 For the fiscal year 2012/2013 we expect further growth and hence increase in income from our Private Banking business. The outstanding performance of our funds should induce more substantial volume in Asset Management. Promising Card Payment Services projects are about to be concluded. Together with our partners we are currently developing further projects in the field of card-supported payment transactions.
Material Risks and Uncertainties On January 25, 2012, the Securities and Exchange Board of India (SEBI) confirmed an interim order of September 22, 2011 – the order accuses Euram Bank of having
breached the rules of conduct of the Indian Stock Exchange as FII licensee. Due to continuing investigation in that matter it was not yet possible to appeal the interim order. On October 10, 2011, Euram Bank filed a written statement with SEBI, and a hearing was held before SEBI on November 18, 2011. Euram Bank continues to cooperate with all authorities involved and urges a fast clarification of the matter. In February 2012, an Indian company filed a complaint with the Vienna Commercial Court to obtain a declaratory judgment against Euram Bank. Euram Bank and the Indian company disagree as to the authenticity of a pledge agreement dated March 2010 between the Indian company and Euram Bank and whether Euram Bank is therefore entitled to use the pledged credit balance on the Indian company's account with Euram Bank to secure a loan which Euram Bank granted to a borrower. In reliance on that pledge agreement, Euram Bank refuses to transfer the Indian company's credit balance to other accounts. Euram Bank has obtained an opinion from a sworn and court-certified expert for forensic graphological examination in order to clarify whether the signature on the pledge agreement entered into by the In-
dian company and Euram Bank is an authentic signature of the Indian company's authorized representative, or whether it might be forged, as the Indian company claimed. The expert concluded that the signature on the pledge agreement between the Indian company and Euram Bank is an authentic signature of the person authorized by the Indian company and not a forgery. Based on the above expert opinion, Euram Bank anticipates that the court will decide in favor of Euram Bank.
take advantage of short-term price and interest fluctuations.
Liquidity risk is limited by largely matching maturities. Customer deposits are mainly invested according to maturities, and demand deposits are invested up to a maximum of one week with a selected group of other banks. Interest rate risks are controlled upon advice from the Asset-/ 足 Liability Management Committee (ALCO), which issues recommendations for the asset/ liability management. The results are eval3. Risk Reporting uated and discussed on a monthly basis. The recoverability of collateral provided Euram Bank applies the standard method for collateralized loans is reviewed autoset out in Section 22a of the Banking Act matically on a daily basis. to calculate its credit risk. Euram Bank grants loans in the context of existing cus- Given Euram Bank's geographical focus, tomer relationships and subject to full col- operational risk is the most significant lateralization, either through cash deposits risk. The money laundering risk is mitior through securities held with Euram gated by implementing an analytical anBank, taking into account appropriately ti-money laundering-, compliance- and conservative lending limits. Euram Bank risk solution. The AML solution allows us does not invest in derivative financial in- to identify unusual, unexpected and susstruments. picious customer patterns and transactions, and the Compliance Officer is autoMoreover, Euram Bank does not engage in matically warned in case of any significant trading for its own account. Securities held suspicious patterns. In addition to identias current assets were exclusively held for fying suspicious situations, this AML soresale to customers and not with a view to lution supports the investigation, further
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processing and documentation of identified cases. Each step is completely documented in compliance with audit guidelines and can be reviewed and verified at any time by means of reporting tools. To limit its legal risks, Euram Bank closely cooperates with a renowned law firm and uses this firm's expertise in connection with the launch of new products, transactions, and lines of business.
(BWG) in conjunction with Section 182 of the Solvency Ordinance to calculate our operational risk. In compliance with the pillar II/Basel II requirements, the “ICAAP" measures were adopted. Euram Bank issues a risk strategy which is updated on an annual basis. As provided in the risk strategy, the risk bearing capacity analysis compares the available risk coverage with potential risks. That analysis is prepared on a quarterly basis and is submitted to the managing board and the supervisory board as part of the risk report.
In the process of operational risk management, guidelines for the identification, evaluation and monitoring of risks are reviewed on an annual basis. Daily risk management was incorporated into business and administration sectors. This business partnership model ensures close Vienna, dated October 29, 2012 monitoring and guides the staff to a high awareness for operational risks. The Managing Board Viktor Popovic We apply the base indicator method pur- Manfred Huber suant to Section 22j of the Banking Act Johannes Langer
Balance sheet as of June 30, 2012 ASSETS
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June 30, 2012 June 30, 2011
EUR EUR THOUSAND EUR 1. Cash in hand, balances with central banks and post office banks 37,749,965.46 42,689 2. Claims against credit institutions 46,896,439.84 41,680 a) repayment on demand 23,197,627.16 38,830 b) other loans and advances 23,698,812.68 3,350 3. Loans and advances to customers 244,546,377.70 334,672 4. Stocks and other non fixed income securities 9,908,538.80 13,954 5. Participations 33,523,187.14 30,592 6. Shares in affiliated companies 1,007,488.21 1,863 7. Intangible fixed assets 56,754.84 77 8. Tangible assets 195,542.87 254 hereof: land and buildings used by the credit institution in the course of its own business 9. Other assets (EUR 0.00) 2,555,938.40 3,477 10. Prepayments and accrued income 453,928.37 456 376,894,161.64 469,714 11. Foreign assets
292,763,096.93
386,240
LIABILITIES June 30, 2012 June 30, 2011 EUR EUR THOUSAND EUR 1. Liabilities to credit institutions 3,072,841.07 5,112 a) repayable on demand 72,479.40 112 b) with agreed maturity dates or period of notice 3,000,361.67 5,001 2. Liabilities to customers (non-bank) 351,301,110.27 433,671 a) Other liabilities aa) repayable on demand 323,253,145.31 125,682 bb) with agreed maturity or period of notice 28,047,964.96 307,989 3. Securitised liabilities 1,904,844.37 10,213 4. Other liabilities 2,320,983.21 2,078 5. Accruals and deferred income 140,225.39 13 6. Provisions 2,525,672.03 2,127 a) provisions for severance payments 253,787.10 186 b) provisions for taxation 275,000.00 275 c) other provisions 1,996,884.93 1,666 7. Subscribed capital 10,045,712.61 10,046 8. Capital reserves 1,886,813.16 1,887 a) tied-up 1,886,813.16 1,887 9. Profit reserves 2,634,904.17 2,099 a) other reserve 2,634,904.17 2,099 10. Liability reserve pursuant to § 23 para 6 Banking Act 660,500.00 661 11. Net Profit 400,555.35 1,808 376,894,161.64 469,714 1. Contingent liabilities 3,968,286.47 3,884 2. Fiduciary Deposits 2,580,639.49 1,071 3. Own funds to be taken into account pursuant to § 23 15,171,175.10 14,615 4. Required own funds pursuant to § 22 para 1 6,148,440.00 5,596 5. Liabilities abroad 346,776,951.41 430,545
Profit and loss account for 2011/2012
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PROFIT AND LOSS ACCOUNT FOR 2011/2012 June 30, 2012 June 30, 2011 EUR EUR THOUSAND EUR 1. Interest and interest-like earnings 5,435,415.80 8,987.6 hereof: fixed interest securities EUR 0.00 2. Interest and interest-like expenditures -1,979,995.69 -4,435.3 I. NET INTEREST EARNINGS 3,455,420.11 4,552.3 3. Earnings from securities and participations 94,348.06 1,089.8 a) Income from shares and variable income securities 85,663.41 95.2 b) Income from participations 8,684.65 994.6 4. Earnings from commissions 17,331,216.32 14,790.5 5. Expenditures from commissions -9,874,374.05 -7,263.6 6. Earnings/expenditures from financial transactions -123,762.38 1.5 7. Other operating earnings 2,988,451.23 1,958.1 II. OPERATING EARNINGS 13,871,299.29 15,128.6 8. General administrative expenditures a) Personnel expenditures -5,038,893.57 -5,067.4 aa) Wages and salaries -4,120,623.86 -4,002.5 bb) Payment of legal social levies and compulsory contributions -651,694.89 -755.7 cc) Other social expenditures -52,875.29 -59.1 dd) Expenditures for old-age care and assistance -109,109.18 -99.0 ee) Endowment of the severance compensation provision -104,590.35 -151.1 b) Other administrative expenditures (overhead) -5,612,263.01 -4,831.8 -10,651,156.58 -9,899.2
PROFIT AND LOSS ACCOUNT FOR 2011/2012 June 30, 2012 June 30, 2011 EUR THOUSAND EUR 9. Value adjustments of the assets listed in asset items 7 and 8 10. Other operating expenditures III. OPERATING EXPENDITURES IV. OPERATING RESULT 11. Balance of value adjustments and earnings from the dissolution of value adjustments of claims and allocations to/from provisions for contingent liabilities and credit risks 12. Balance of earnings and expenditures from value adjustments of securities valued like financial investments as well as of participations and shares held in affiliated companies V. RESULT OF ORDINARY BUSINESS OPERATION 13. Income and earnings tax VI. ANNUAL SURPLUS 14. Change of reserve VII. ANNUAL PROFIT 15. Profit carryforward / loss carryforward VIII. NET PROFIT
-154,919.94 -159.6 -242,495.49 -396.7 -11,048,572.01 -10,455.5 2,822,727.28 4,673.1
-440,199.48
-2,214.9
-912,409.20 -389.3 1,470,118.60 2,068.9 -541,767.63 -324.1 928,350.97 1,744.8 -536,000.00 0.0 392,350.97 1,744.8 8,204.38 63.4 400,555.35 1,808.2
Notes
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to the financial statements of European porate groups, as of June 30, 2012, American Investment Bank Aktiengesell the group consists of Euram Holding schaft (“Euram Bank") as of June 30, 2012. Aktien gesell schaft as group parent and of Euram Beteiligungverwaltung GmbH The financial statements as of June 30, 2012 and Euram Bank as group companies. were prepared according to the provisions Taxes are allocated using the stand-alone of the Accounting Act in compliance with method. the special provisions of the Banking Act.
Foreign Currency Amounts
1. G ENERAL PRINCIPLES AND Pursuant to Section 58 (1) of the Banking INFORMATION ON ACCOUNTING Act, amounts in foreign currency are translated at the mean rates of exchange AND VALUATION General Principles The financial statements as of June 30, 2012 were prepared in compliance with generally accepted accounting principles and the general standard to present a fair view of the company's assets and liabilities, financial condition and results of operation. The financial statements were prepared in compliance with the principle of consistency of presentation. Assets and liabilities were valued in compliance with the principle of individual valuation and the going concern principle. Compliance with the principle of conservatism is ensured by recognizing only profits realized on the balance sheet date and recognizing all identifiable risks and impending losses in the balance sheet. According to Section 9 of the Corporate Income Tax Act on the taxation of cor
on the balance sheet date.
Financial Instruments in the Bank Book As of June 30, 2012, Euram Bank recorded shares in hedge funds as well as two collateralized loan obligations (EUR 3.3 million / June 30, 2011: EUR 10.1 million) in the bank book. Shares in Hedge Funds 1794 Commodore Overseas Fund CFS I CFS II Sharpe Futures Fund
EUR thousand EUR EUR EUR EUR
Collateralized Loan Obligations Whitebark Pine I Ltd Canal Point I Ltd
EUR thousand EUR 261 EUR 38
720 942 0 1,364
Lending Risks In the fiscal year 2011/2012, Euram Bank's loans to customers amounted to EUR 244.5 million (June 30, 2011: EUR 334.7 million), EUR 215.0 million of which (June 30, 2011: EUR 303.8 million) are collateralized by deposits; the remaining loans are mainly collateralized by mortgages, deposits and/or securities. Lendings Collateralized by deposits Collateralized by mortgages, deposits and securities Non-collateralized
EUR million EUR 215.0
EUR 29.4 EUR 0.1
Shares in affiliated companies Euram Bank holds 100% in Euram Invest Holdings I GmbH with its registered office in Vienna, Austria, in Euram Invest Holdings II GmbH with its registered
ffice in Vienna, Austria, and in Euram o Invest Holdings 3 GmbH with its registered office in Munich, Germany, in Euram Invest Holdings Vier GmbH with its registered office in Vienna, Austria (the companies’ line of business being the management of investments), and 51% in Euram Bank Asia Limited with its registered office in Dubai, United Arab Emirates. The shares in Euram Bank Asia Limited were written down to EUR 569.4 thousand (June 30, 2011: EUR 1,383.1 thousand). No dividends were distributed to Euram Bank in the fiscal year 2011/2012. (In fiscal year 2010/2011: USD 1,4 million from Euram Bank Asia Limited). Pursuant to Section 238(2) of the Companies Act, the equity capital and the last fiscal year’s results of affiliated companies can be summarized as follows:
(in EUR thousand) Equity Euram Invest Holdings I GmbH 199.3 Euram Invest Holdings II GmbH 106.6 Euram Invest Holdings 3 GmbH 314.4 Euram Invest Holdings Vier GmbH 52.9 Euram Bank Asia Ltd 1,453.5
Share in Equity 100% 100% 100% 100% 51%
Results last fiscal year -1.5 -1.7 -3.8 0.3 -1,640.9
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Participations
mathematics by applying an interest rate of 4% on the basis of an arithmetical pension age of 60 years for women and 65 years for men. A fluctuation discount is not applied.
This item includes the investment in the deposit guarantee scheme of “Einlagensicherung der Banken und Bankiers GmbH”, Vienna, as well as shares (EUR 33.5 million / June 30, 2011: EUR 30.6 million) in five (June 30, 2011: four) companies held Contingent Liabilities in trust. The investment in Österreichische Contingent liabilities include financing Clearingbank AG was terminated in the guarantees collaterized by securities or by fiscal year 2011/2012. cash (EUR 0.3 million / June 30, 2011: EUR 0.3 million), an unsecured financing Property, Plant and Equipment guarantee (EUR 0.6 million / June 30, 2011: Intangible fixed assets as well as property, EUR 1.7 million), and guarantees to credit plant and equipment are valued at cost, card companies for the credit card limits less regular depreciation. Low-value items granted to Euram Bank clients (EUR 3.0 milare fully depreciated in the year of acqui- lion / June 30, 2011: EUR 1.9 million). sition. Regular depreciation is made on a straight-line basis. Credit Risk This item contains undrawn credit faciliRegular depreciation is based on the fol- ties (EUR 2.6 million / June 30, 2011: EUR lowing useful lives: 1.1 million). Company cars 8 years Office furniture 5 years Fiduciary Receivables Leasehold improvements 5 years Fiduciary receivables are included in the Office equipment 5 years positions “loans and advances to customSoftware 5 years ers” (EUR 5.6 million / June 30, 2011: Hardware 5 years EUR 10.6 million), “shares and other variable-yield securities" (EUR 1.2 million / Accruals for Severance Payments June 30, 2011: EUR 9.4 million) and Accruals for severance payments are cal- “participating interest" (EUR 33.5 million / culated according to principles of financial June 30, 2011: EUR 30.6 million).
Fiduciary Liabilities Fiduciary liabilities are included in the positions “liabilities to customers” (EUR 39.1 million / June 30, 2011: EUR 41.2 million) and in “securitised liabilities" (EUR 1.2 million / June 30, 2011: EUR 9.3 million).
2. NOTES TO THE BALANCE SHEET A. Presentation of Maturities Receivables (not repayable on demand) from banks and customers as well as payables (not repayable on demand) to banks and customers are summarized according to remaining maturities: Receivables from banks Up to 3 months More than 3 months to 1 year More than 1 year to 5 years More than 5 years
Payables to banks Up to 3 months More than 3 months to 1 year More than 1 year to 5 years More than 5 years Payables to customers Up to 3 months More than 3 months to 1 year More than 1 year to 5 years More than 5 years
EUR
3,000
EUR
0
EUR EUR
0 0
EUR
1,747
EUR
13,756
EUR EUR
12,545 0
B. Securities
EUR thousand EUR 23,698
In the fiscal year 2011/2012, Euram Bank did not hold any fixed-interest securities.
EUR
0
C. S hares and Other Non-fixed-interest Securities
EUR EUR
0 0
This item includes investment fund shares held as fixed assets (EUR 1.8 million / June 30, 2011: EUR 1.8 million). Current assets include hedge fund shares (EUR 2.3 million / June 30, 2011: EUR 9.0 million), two collateralized loan obligations (EUR 0.3 million / June 30, 2011: EUR 0.3 million), and hedge fund shares in the “1794 Commodore Overseas Fund" (EUR 0.7 million / June 30, 2011: EUR 0.9 mil-
Receivables from customers Up to 3 months EUR 37,528 More than 3 months to 1 year EUR 172,087 More than 1 year to 5 years EUR 24,175 More than 5 years EUR 9,128
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lion). This item also includes investment fund shares (EUR 4.4 million / June 30, 2011: EUR 1.8 million), a self-issued partial debenture of EUR 250 thousand (June 30, 2011: EUR 194 thousand) and a self-issued certificate in the amount of EUR 53 thousand (June 30, 2011: EUR 36 thousand). Furthermore, shares (EUR 10.0 / June 30, 2011: EUR 0.0) are held in “Petrocapital Resources PLC". Fixed Assets Europportunity Bond
EUR thousand EUR 1,845
Current Assets CFS I EUR CFS II EUR Sharpe Futures Fund EUR Whitebark Pine I Ltd EUR Canal Point I Ltd EUR 1794 Commodore Overseas Fund EUR Europportunity Bond EUR USD Convergence Bond EUR Advantage Stock EUR Euram CLO Note I EUR Euram Commodore Index Certificate Euro Protected 2 EUR Petrocapital Resources PLC EUR
942 0 1,364 261 38 720 701 0.7 3,732 250
53 0.01
None of the items of fixed and current assets are quoted on the stock exchange. The listing of “Petrocapital Recources PLC" was suspended in 2010. In the fiscal year 2011/2012, Euram Bank did not hold a securities trading book. In the fiscal year 2011/2012, Euram Bank held one share (“Petrocapital Resources PLC").
D. Fixed Assets The fixed-assets movement schedule is presented as a separate schedule of the notes.
E. Other Assets Other assets include corporate income tax, VAT and capital gains tax receivables from prepayments to the Tax Office for Corporations (EUR 241 thousand / June 30, 2011: EUR 61 thousand), a pending repayment (EUR 0.5 million / June 30, 2011: EUR 1.0 million), fees charged for the management of investment funds (EUR 0.5 million / June 30, 2011: EUR 0.5 million), outstanding receivables (EUR 185 thousand / June 30, 2011: EUR 1.0 million), a real estate property which is not intended to be held on a long-term basis (EUR 250 thou-
sand / June 30, 2011: EUR 250 thousand), as well as an investment (WhiteConcierge Ltd) which is not intended to be held on a long-term basis either (EUR 0.8 million / June 30, 2011: EUR 0.8 million).
F. Prepayments and accrued income This item includes current salary payments (EUR 130.9 thousand / June 30, 2011: EUR 137.2 thousand), prepaid insurance premiums, information and maintenance expenses (EUR 242.5 thousand / June 30, 2011: EUR 164.1 thousand), prepaid rent (EUR 11.7 thousand / June 30, 2011: EUR 7.6 thousand), prepayments for the data processing center (EUR 62.5 thousand / June 30, 2011: EUR 145.8 thousand), and other prepayments (EUR 6.3 thousand / June 30, 2011: EUR 1.6 thousand).
H. Other Liabilities Besides invoices already received but not yet paid in respect of the fiscal year 2011/2012 (EUR 0.4 million / June 30, 2011: EUR 1.3 million) and liabilities to a data collection company – amount of profit share from ATM business – (EUR 1.4 million / June 30, 2011: EUR 0.8 million), this item contains liabilities to an affiliated company (EUR 0.5 million / June 30, 2011: EUR 0.0 million) from tax allocations.
I. Accruals and Deferred Income This item mainly includes fees (EUR 140.2 thousand / June 30, 2011: EUR 13.1 thousand), already received but allocated to the following fiscal year.
J. Shareholders' Equity
1.) The share capital in the amount of EUR 10,045.7 thousand is divided into 270,000 This item contains self-issued bonds and a share units, each representing the same inself-issued certificate. terest in the share capital. EUR thousand Euram CLO Note I EUR 268 2.) The shareholders' equity consists of the CFS Alternative following: Investment Note I EUR 942 EUR thousand CFS Alternative Subscribed capital EUR 10,045.7 Investment Note II EUR 0 (Appropriated) reserve EUR 1,886.8 Euram Commodore Retained earnings EUR 2,634.9 Index Certificate Liability reserve pursuant Euro Protected 2 EUR 694 to Section 23 (6) Banking Act (BWG) EUR 660.5
G. Securitised Liabilities
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3.) An amount of EUR 536 thousand (June 30, 2011: EUR 0 thousand) was allocated to revenue reserves in the fiscal year 2011/2012. 4.) The net profit for the fiscal year 2011/2012 amounts to EUR 400.6 thousand (June 30, 2011: EUR 1,808.2 thousand).
K. Required own funds Euram Bank uses the following methods to calculate its required own funds: Credit risk: Standard method Operational risk: Basis indicator method
EUR thousand Receivables from central states or central banks EUR 0 Receivables from regional administrative bodies EUR 0 Receivables from institutions EUR 751 Receivables from companies EUR 2,080 Retail receivables EUR 193 Receivables collateralized by real estate properties EUR 0 Receivables in the form of investment fund shares EUR 377 Other items EUR 566
The required own funds for the credit risk The required own funds for the foreign curamount to EUR 3,967 thousand rency risk amount to EUR 0 (June 30, 2011: (June 30, 2011: EUR 3,369 thousand). EUR 0). Pursuant to Section 22a (4) of the Banking The required own funds for the operational Act (BWG), 8% of the weighted receivables risk amount to EUR 2,181 thousand for each class of receivable amount to: (June 30, 2011: EUR 2,227 thousand).
L. Additional Disclosures
6.) Obligations from the use of fixed assets 1.) Total amount of assets and liabilities in not recognized in the balance sheet amount foreign currency: to EUR 389.6 thousand in the next year EUR million (June 30, 2011: EUR 396.7 thousand), Assets in foreign EUR 2.0 million in the next five years and currency EUR 273.0 are mainly related to rental payments for Liabilities in foreign the use of office space. currency EUR 271.5 7.) In the fiscal year 2011/2012, Euram 2.) In the fiscal year 2011/2012, Euram Bank redeemed a self-issued note (“CFS Bank was restraint in the disposal of an Alternative Investment Note II") of a total asset (EUR 3.6 million / June 30, 2011: nominal value of EUR 6.6 million, because EUR 3.6 million). the investor had exercised his termination right. 3.) Receivables from affiliated companies amount to EUR 6.5 million (June 30, 2011: 8.) The total volume of forward exchange EUR 0.1 million). transactions not yet executed on the balance sheet date can be summarized as 4.) Liabilities to affiliated companies follows: amount to EUR 0.5 million (June 30, 2011: EUR 0.5 million) June 30, June 30, EUR million 2012 2011 5.) Other accruals (EUR 2.0 million / Contracts June 30, 2011: EUR 1.7 million) include to buy EUR 0.4 EUR 0.0 accruals for bonuses, unconsumed annual Contracts leave, legal, auditing and advisory fees, as to sell EUR 0.4 EUR 0.0 well as other expenses.
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3. N OTES TO THE INCOME STATEMENT
Expenditures from value adjustments for receivables amount to EUR 440 thousand (June 30, 2011: EUR 2.2 million) – one reWith reference to Section 242 (1) of the ceivable from a customer was fully depreCompanies Act, income will not be item- ciated (EUR 103 thousand), a second reized by geographical markets pursuant to ceivable from a customer was written Section 64 (1) no. 9 of the Banking Act. down (EUR 337 thousand). With reference to Section 237 of the Companies Act, other operating income and other operating expenses pursuant to Section 64 (1) no 12 of the Banking Act are summarized as follows: – Other operating income mainly consists of costs recharged to customers (EUR 1.0 million / June 30, 2011: EUR 638 thousand), income from a corporate finance transaction (EUR 1.6 million / June 30, 2011: EUR 1.0 million), the release of accruals concerning the fiscal year 2010/2011 (EUR 0.2 million / June 30, 2011: EUR 0.1 million), and a VAT credit (EUR 0.2 million / June 30, 2011: EUR 0.1 million).
Expenditures from value adjustments in respect of securities as well as of participations and shares held in affiliated companies amount to EUR 0.9 million (June 30, 2011: EUR 0.4 million) and are mainly related to the value adjustment for Euram Bank Asia Limited (EUR 813.6 thousand) and a value adjustment for Euram Invest Holdings II GmbH (EUR 41.8 thousand). “Taxes from income and earnings” (EUR 541.8 thousand / June 30, 2011: EUR 0.3 million) recognized in the profit and loss accounts, taking into account tax allocations, adversely affect the “Profit or loss on ordinary activities” (35.7% / June 30, 2011: 15.7%).
– In the fiscal year 2011/2012 Euram Bank recognized other operating expenses An amount of EUR 536 thousand was al(EUR 242 thousand / June 30, 2011: located to revenue reserves in the fiscal EUR 397 thousand), being expenses for year 2011/2012. two external advisors.
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4. MISCELLANEOUS
sand / June 30, 2011: EUR 177 thousand) to executives.
1.) The Bank employed on average 35.7 (June 30, 2011: 37) employees in the fiscal 5.) In the fiscal year 2011/2012 the manyear 2011/2012. aging board of the company was composed of the following members: 2.) In the fiscal year 2011/2012, accruals for severance payments and pensions Viktor Popovic amount to EUR 156 thousands Manfred Huber (June 30, 2011: EUR 116 thousand) for ex- Johannes Langer ecutives and EUR 98 thousand (June 30, 2011: EUR 70 thousand) for other 6.) In the fiscal year 2011/2012 the elected employees. In addition, contributions supervisory board was composed of the (EUR 109 thousand / June 30, 2011: following members: EUR 99 thousand) were paid to the company pension fund. Erik Max Michael Obermayer – Chairman 3.) The total compensation of 3 members Adolf Walter Höllmer of the managing board (June 30, 2011: 5 – Vice-chairman members) amount to EUR 1.3 million Dkfm. Senta Penner (June 30, 2011: EUR 1.6 million) for their activities in the fiscal year 2011/2012; the 7.) Euram Bank is included in consolidated members of the supervisory board received financial statements. The company, which a compensations of EUR 127.4 thousand in prepares the consolidated financial statethe fiscal year 2011/2012 (June 30, 2011: ments is as follows: EUR 69.3 thousand). Euram Holding Aktiengesellschaft 4.) In the fiscal year 2011/2012, Euram Wallnerstrasse 4 Bank granted two loans (EUR 150 thou- 1010 Wien
8.) The “EURAM GROUP”: 100%
Euram Holding AG 37%
Euram Beteiligungverwaltung GmbH
63%
European American Investment Bank AG
Euram Euram Euram Euram Euram
Invest Holdings I GmbH (100%) Invest Holdings II GmbH (100%) Invest Holdings 3 GmbH (100%) Invest Holdings Vier GmbH (100%) Bank Asia Ltd. (51%)
5. ADDITIONAL DISCLOSURES In compliance with the company's disclosure requirements acc. to section 26 of the Banking Act (BWG), reference is made that the publication is available on the website of Euram Bank (www.eurambank.com) at “Euram Bank/Publications and Disclosures”.
Vienna, dated October 29, 2012
The Managing Board Viktor Popovic Manfred Huber Johannes Langer
Audit opinion
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Report on the Financial Statements Principles. This responsibility includes: deWe have audited the accompanying financial statements, including the accounting system, of European American Investment Bank Aktiengesellschaft, Vienna, for the fiscal year from July 1, 2011 to June 30, 2012. These financial statements comprise the balance sheet as of June 30, 2012, the income statement for the fiscal year ended June 30, 2012, and the notes.
Management’s Responsibility for the Financial Statements and for the Accounting System The Company’s management is responsible for the accounting system and for the preparation and fair presentation of these financial statements in accordance with Austrian Generally Accepted Accounting
signing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility and Description of Type and Scope of the Statutory Audit Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with laws and regulations applicable in Austria and Austrian Standards on Auditing. Those standards require that we comply with professional guidelines and
that we plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriate-
ness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion Our audit did not give rise to any objections. In our opinion, which is based on the results of our audit, the financial statements comply with legal requirements and give a true and fair view of the financial position of the Company as of June 30, 2012 and of its financial performance for the fiscal year from July 1, 2011 to June 30, 2012 in accordance with Austrian Generally Accepted Accounting Principles.
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Comments on the Management Report Pursuant to statutory provisions, the management report is to be audited as to whether it is consistent with the financial statements and as to whether the other disclosures are not misleading with respect to the Company’s position. The auditor’s report also has to contain a statement as to whether the management report is consistent with the financial statements. In our opinion, the management report is consistent with the financial statements. Vienna, October 29, 2012
Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H. Dr. Robert Wauschek mp Certified Public Accountant Mag. Ernst Schönhuber mp Certified Public Accountant
Euram Bank AG Palais Esterházy Wallnerstrasse 4 1010 Vienna, Austria Tel. +43 1 512 38 80 0 Fax +43 1 512 38 80 888 office@eurambank.com www.eurambank.com
This is a translation from German. In case of any discrepancies between the English and the German version the German text shall prevail.
Concept, design and production die3 Agentur für Werbung und Kommunikation GmbH Photographs Michael Stelzhammer, Shutterstock Print Vorarlberger Verlagsanstalt
Euram Bank AG Palais Esterhรกzy Wallnerstrasse 4 1010 Vienna Tel. +43 1 512 38 80 0 Fax +43 1 512 38 80 888 office@eurambank.com www.eurambank.com
Euram Bank at the Palais Esterhรกzy, Vienna