Bank Austria Creditanstalt - Annual Report 2004

Compared with the previous year, there have been the following changes in the group of consolidated companies of Bank Austria Creditanstalt:

HVB-Banka Bosna i Hercegovina d.d., Sarajevo, and Central profit banka d.d. Sarajevo, in which an 81.79% interest was acquired for € 19.8 m at the end of 2003, have been consolidated as from 1 January 2004. The legal merger of the two banks was completed in the second half of 2004, the name of the merged bank is HVB Central Profit Banka d.d.

HVB Jelzálogbank, a Hungarian mortgage bank in which HVB Bank Hungary holds a 99.9% interest, has also been consolidated as from 1 January 2004 because of its dynamic business development.

In January 2004, BPH PBK’s 71.2% interest in Górnoslaski Bank Gospodarczy – Spólka Akcyjna (GBG), Katowice, was sold for PLN 255 m and excluded from consolidation as from 1 May 2004. The sale resulted in a gain of € 12.7 m for the Bank Austria Creditanstalt Group. In the first four months, GBG made a contribution of € 4.8 m to the Group’s results for 2004. At the same time, the integration process of BPH PBK was completed and the bank’s name was changed to Bank BPH.

BA-CA Administration Services GmbH and DATALINE Zahlungsverkehrsabwicklungs GmbH commenced operations on 1 November 2004. Employees of Bank Austria Creditanstalt AG were delegated to these two consolidated subsidiaries. As a result, staff at branch offices are relieved of settlement work and back-office activities, which are now combined within specialised units.

Effect of business combinations and disposals
Assets
€ m	Consolidated balance sheet at 31 Dec. 2003	Disposal of consolidated subsidiaries	Additions of consolidated subsidiaries
Cash and balances with central banks	2,286	–100	72
Trading assets	16,140	–	3
Loans and advances to, and placements with, banks	25,130	–106	266
Loans and advances to customers	75,997	–338	143
– Loan loss provisions	–3,490	52	–1
Investments	16,005	–129	12
Property and equipment	1,120	–10	18
Intangible assets	1,193	–1	4
Other assets	2,674	–7	5
TOTAL ASSETS	137,053	–640	522

Liabilities and shareholders’ equity
€ m	Consolidated balance sheet at 31 Dec. 2003	Disposal of consolidated subsidiaries	Additions of consolidated subsidiaries
Amounts owed to banks	39,133	–76	61
Amounts owed to customers	53,824	–500	235
Liabilities evidenced by certificates	17,399	–	172
Trading liabilities	8,560	–	–
Provisions	3,422	–3	1
Other liabilities	3,118	–7	11
Subordinated capital	5,419	–4	3
Minority interests	362	–	–
Shareholders’ equity	5,815	–50	39
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	137,053	–640	522

A&B Banken-Holding GmbH, Vienna, a company accounted for under the equity method until 1 October 2004, was split up as at that date. Bank Austria Creditanstalt received the shares in Oberbank, BKS and BTV. These shares have been included in the consolidated financial statements under the equity method as from October 2004.

(2) Business combinations and disposals