Annual Report of Raiffeisen-Landesbank Tirol AG

Transcription

1 Annual Report of Raiffeisen-Landesbank Tirol AG

2 Annual Report Contents Foreword by the Board of Managing Directors 04 Overview by the Board of Managing Directors & Supervisory Board 06 Foreword by the Chairman of the Supervisory Board 07 Raiffeisen-Landesbank Tirol AG 08 Employees 10 Raiffeisen in Tyrol 12 Raiffeisen in Austria 14 Management Report 16 Annual fi nancial statements 28 Bank branches 46

3 04 Foreword by the Board of Managing Directors Foreword by the Board of Managing Directors 05 Foreword by the Board of Managing Directors Dear Ladies and Gentlemen, As early as the start of 2009 it became clear that, in parallel to the fi nancial crisis triggered by the insolvency of the US investment bank Lehman Brothers, there would also be a critical phase in the real economy. Many experts even forecast a global depression. This was nevertheless cushioned by enormous efforts on the part of governments, with numerous bank rescue plans and economic stimulus packages as well as an expansive monetary policy by central banks. Even though the situation had calmed down somewhat by mid-year as a result of these interventions, 2009 will go down in history as one of the worst years for business since the end of the Second World War. Raiffeisen-Landesbank Tirol AG can also look back on an extraordinary year The economic crisis, which was very apparent in Austria with a GDP decline of 3.6 per cent, resulted in considerable additional expense for credit risk management. Despite the diffi cult economic climate, a substantial improvement was made to our earnings from ordinary business activities and, in a comparison with our competitors in the sector, we were able to generate a very good net result. This is primarily due to our business model with its consistent focus on the customers in our region. Our committed and capable employees are also a crucial competitive advantage. We owe our special thanks to them. Dr Hans Unterdorfer Dr Hannes Schmid Chairman of the Board Reinhard Mayr Gobert Sternbach We are very pleased that we have again in 2009 succeeded in extending our leading market position in Tyrol, together with the 81 Tyrol Raiffeisen banks. As an alliance we are by far the largest and most powerful banking group in the federal state. Backed up by more than 262 bank branches throughout the region, we provide the local population and business with high-quality fi nancial services. The Raiffeisen Banking Group Tyrol also provides more than 2,700 jobs, making it one of the largest and most attractive employers. We thank our customers, partners, owners and employees for the trust placed in us and we look forward to successful cooperation in Dr Hannes Schmid Chairman of the Board Reinhard Mayr Gobert Sternbach Dr Hans Unterdorfer

4 06 Overview by the Board of Managing Directors & Supervisory Board Foreword by the Chairman of the Supervisory Board 07 Overview by the Board of Managing Directors and Supervisory Board Foreword by the Chairman of the Supervisory Board Board of Managing Directors of Raiffeisen-Landesbank Tirol AG Dear Ladies and Gentlemen, Dr Hannes Schmid Chairman of the Board Gobert Sternbach Supervisory Board of Raiffeisen-Landesbank Tirol AG Prominent Businessman Peter Greiderer* Chairman Director of Raiffeisenbank Wörgl Kufstein Johannes Gomig, MBA Deputy-Chairman** Director of Raiffeisenbank Reutte Berthold Blassnig Director of Raiffeisenbank Defereggental Engineer, Alfred Greil* Farmer, Dölsach Herbert Jehle* Director of Raiffeisenbank Paznaun Andreas Mantl Director of Raiffeisenbank Wipptal Dr Michael Misslinger** Director of Raiffeisenbank Wörgl Kufstein Gallus Reinstadler Director of Raiffeisenbank Pitztal Reinhard Mayr Dr Hans Unterdorfer Josef Graber Chairman ** Director of Raiffeisen Regional Bank Hall in Tyrol Peter-Roman Bachler Deputy-Chairman** Director of Raiffeisenbank Kitzbühel Josef Chodakowsky** Director of Raiffeisenbank St. Anton am Arlberg Dr Anna Hosp** Employee, D. Swarovski & Co. Martin Lorenz** Managing Director of Bergbahnen Silvretta Galtür Meinhard Mayr Director of Raiffeisen District Bank Schwaz Dr Manfred Opperer* Lawyer Johann Thaler** Mayor of Reith i. Alpbachtal In 2009 the Austrian economy was unable to escape the downward economic trend throughout the world as general conditions became very challenging. This makes it all the more remarkable that Raiffeisen-Landesbank Tirol AG, the fl agship of the Raiffeisen Banking Group Tyrol, can report a fi ne result for 2009 in this environment. It was possible to continue the success of recent years through the bank's consistent focus on customer business in the region, our prudent risk policy and the close attention given to costs. The cornerstones of this performance were professional management and the outstanding commitment of all the bank's employees. A particularly noteworthy aspect of 2009 was the excellent cooperation within the Raiffeisen Banking Group Tyrol. The economic challenges were tackled very well, synergies were used and the market position was extended, all as a joint effort. In doing so, Raiffeisen-Landesbank Tirol AG has performed its role as a leading institution very well. Collaboration between the Board of Managing Directors and the Supervisory Board was also highly constructive in 2009 and benefi ted Raiffeisen-Landesbank Tirol AG as well as the entire Raiffeisen Banking Group Tyrol. I would like offer my warmest thanks to the whole Board of Managing Directors, all management personnel, operating staff and employees for this productive cooperation and high degree of dedication. Delegates from the Staff Council Doris Clementi, Innsbruck Roman Sautner, Jenbach Erika Zingerle, Innsbruck Heinz Hofer, Lienz Rudolf Staffler, Tristach Dr Markus Zorn, Rum Dir. Josef Graber Chairman of the Supervisory Board State Commissioners Court Counsellor Dr Michael Manhard Federal Ministry of Finance, Vienna AD Andreas Umlauf Federal Ministry of Finance, Vienna * until ** since

5 08 Raiffeisen-Landesbank Tirol AG Raiffeisen-Landesbank Tirol AG 09 Raiffeisen-Landesbank Tirol AG Major stakes held by RLB Tirol AG A modern fi nancial services provider with tradition Raiffeisen stands for competence and reliability in all fi nancial matters. Based on the ideas of Friedrich Wilhelm Raiffeisen, the tradition of Raiffeisen fi nancial organisations stretches back more than 100 years. He laid the foundation for a unique success story and a worldwide business model based on his principles. Raiffeisen-Landesbank Tirol AG is the top-level institution of the Raiffeisen Banking Group Tyrol. It is more than 99 per cent owned by the Tyrol Raiffeisen banks and, as an alliance, it represents by far the largest and most powerful banking group in the federal state of Tyrol. Raiffeisen-Landesbank Tirol AG is a modern universal bank, offering its customers tailored, innovative solutions and competent advice. A large number of special-purpose Raiffeisen companies make a key contribution with their expert knowledge and innovative products. RLB Tirol AG offers Tyrol Raiffeisen banks innovative product solutions and professional services. The benchmark for action is effective partnership, mutual appreciation, a sense of responsibility and professionalism. sory services, interesting series of lectures or use of the extensive Raiffeisen network. The resulting long-term added value strengthens the relationship of trust and is the basis for a sustainable and profi table partnership between RLB Tirol AG and its customers. Highly trained and committed employees As a service company, our success is defi ned through customer satisfaction to a large extent. The key to success is highly trained and committed staff. This enables us to respond fl exibly to the needs of customers, to new challenges and new market opportunities. It also ensures that Raiffeisen-Landesbank Tirol AG maintains its competitive edge. One of our most important corporate goals is to provide appropriate further education, because the professional, methodical and personal development of employees is the basis for outstanding job performance. Other major aspects include highlighting individual development options through career planning as well as active health management. Customers benefi t from the high quality of advice as evidenced by the top level of professional and social skills. This forms the basis for a life-long partnership with customers. Austrian National Bank RACON West Software GmbH LOGIS IT Service GmbH Raiffeisen Zentralbank Österreich AG AlpenBank AG Raiffeisen Bausparkasse Raiffeisen-Leasing GmbH Profi table partnership Responsibility for Tyrol as a place to live RLB Tirol AG has a sustainable partnership with its customers. Discretion, professionalism and short decision-making paths are the key elements in providing optimum support to customers for realisation of their projects and objectives. Special emphasis is placed on personal advice, focussing specifi cally on particular customer needs and product quality at the highest level. Raiffeisen-Landesbank Tirol AG stands for proximity. Although close personal attention by the advisors is the principal feature, emphasis is also placed on a local presence. For this reason the RLB branch network in the Tyrol areas of Innsbruck, Innsbruck Land as well as Imst and Lienz is being constantly optimised. In 2009 the branches in Imst and Höttinger Au were renovated or newly built. A fundamental principle of RLB Tirol AG is to provide the best possible service to customers whatever their age and no matter how challenging the fi nancial position. Specialists with innovative solutions are available to deal specifi cally with particular requirements and to develop custom-made products. This enables personal wishes to be fulfi lled or business projects to be realised. Raiffeisen-Landesbank Tirol AG is also strongly committed to Tyrol as a place to live. The causes we support include in particular social facilities such as the Red Cross, the Tyrol hospice movement, the Caritas and Seraphisches Liebeswerk charitable organisations as well as sponsorship for sport, education and science. Raiffeisen-Landesbank Tirol AG also makes a major contribution to art and culture. As far back as the early 1960s, we were one of the fi rst banking institutions in Austria to start building up an art collection. In 1997 the RLB Kunstbrücke (art bridge) at the Adamgasse branch provided space for exhibitions. Three exhibitions are held here each year, by young Tyrol artists through to highly regarded international artists. In music, too, the bank makes its mark by supporting the Alte Musik (Old Music) festival, the Erl Festival and the New Orleans Festival. Tyrol is well known for its wide range of leisure activities and its unique natural heritage, which are part of Tyrol's identity. In order to keep it this way, Raiffeisen-Landesbank Tirol AG sponsors a number of initiatives as a bank with deep roots in the region. Unser Lagerhaus Warenbeteiligungs-GmbH Raiffeisen & Steinmayr Tirol Consult Raiffeisen Bau Tirol Raiffeisen Capital Management PayLife Bank Above and beyond conventional banking services, RLB Tirol AG offers something out of the ordinary, which could be special advi-

6 10 Employees Employees 11 Thanks are due to our employees Manuela ABFALTER, Manfred ACHRAINER, Veronika AIGNER, Iris AIGNER, Pauline AIGNER, Walter ALTSTÄTTER, Karin Brigitte AMMER, Hubert AMON, Christian ANDREATTA, Johann ANGELMAYER, Reinhard ANGERMANN, Sabine ARL, Anita ARLT, Harald ASCHABER, Patricia ASSMAIR, Eva ASTL, Agathe ASTNER, Markus AUER, Cornelia AUER, Roland AUER, Sibylle AUER, Bernhard AUGSCHÖLL, Marina BABIC, Petra BACHLECHNER, Hildegard BACHMAIR, Doris BADSTUBER, Nina BADSTUBER, Hubert BARBIST, Monika BARISITZ, Heinz BAUMANN, Gerald BEER, Petra BENEDIKTER, Maximilian BERGHAMMER, Elisabeth BERNHARDT, Verena BERNLOCHNER, Christian BEVELANDER, Claudia BLIEM, Gerhard BLOEB, Stefan BODNER, Reinhard BÖCK, Ingo BÖHLER, Susann BÖKDRUKKER, Josef BRANDAUER, Eva Maria BRASCHLER, Christian BRAUNEGGER, Barbara BRIDA, Richard BRUGGER, Birgit BRUNNER, Karl BRUNNER, Sabine BUDISCHOWSKY-ANICH, Günther CHRONST, Doris CLEMENTI, Gerhard CRAMER, Christoph CZICHNA, Daniela DAMIANSCHITZ, Martin DANLER, Monika DANNINGER, Peter DARNHOFER, Bianca DAUBEK, Andreas DEGEN- HART, Daniela DEISER, Agnes DEISER, Silvia DELLASEGA, Andreas DIERIGL, Nadine DÖTLINGER, Arno DRAXL, Verena DRESEN, Elisabeth DÜNSER, Katrin DÜRNBERGER, Markus DUFTNER, Peter DULLNIG, Markus DULLNIG, Claudia DULLNIG, Sandra EBERL, Peter ECKERT, Andreas EGGER, Oliver EGGER, Nicole EGGER, Herbert EICHHORN, Irene EISENBEUTL, Christina ELLER, Thomas ELZENBAUMER, Barbara ENGENSTEINER, Christian ENGL, Elisabeth ENGL, Angela ERHARTER, Ilse ERLACHER, Hansjörg ERLER, Martin EXENBERGER, Genovefa FALKNER, Sabine FALSCHLUNGER, Daniel FASCHING, Petra FEICHTNER, Meinhard FIDLER, Johann FINK, Helga FINNER, Christian FOIDL, Roland FRIESS, Ludwig FRÖCH, Elke FÜRHOLZER, Manuela FUNK, Alexander GÄNSLUCKNER, Angelika GALLY, Jörg GAMROTH, Wilfried GANDER, Alfons GANEIDER, Manfred GAPP, Michael GASSER, Birgit GASSER, Roland GASSER BERGER, Walter GAUGG, Johannes GEILER, Manuela GEILER, Christine GEISLER, Petra GEISSLER, Eleonore GERBER-EICHHORN, Claudia GINER, Hermann GIRSTMAIR, Marina GLATZL, Domenik GLÖCKNER, Stefan GOGL, Peter GOLLER, Martin GOREIS, Helga GRABNER, Dagmar GRANZER, Arthur GREIDERER, Daniela GREIDERER, Markus GRIMM, Erich GRISSMANN, Klaus Michael GROSSGUT, Franz GRUBER, Renate GRUBER, Andrea GRUBER, Verena GRUBER, Christina GRUBER, Manuela GRUBER, Evi GRUBER, Angela GRÜNBACHER, Christian GSCHLIESSER, Gerhard GSTREIN, Bernhard GSTREIN, Siegmund GUTTERNIG, Bernhard HAAS, Christa HABERKORN, Olivia-Lorea HABERL, Michael HAGER, Annemarie HAIDER, Michaela HAIDLER, Elisabeth HAIRER, Gabriele HANDL, Johannes HAPP, Heinrich HASELWANTER, Susanne HAUN, Florian HAUSER, Elisabeth HAUSER, Gabriele HAUSER, Karin HAUSER, Julia HEEL, Martin HEIDEGGER, Andreas HEIM, Alexander HEINDL, Alexander HEISS, Karoline HEISS, Martina HEISS, Albert HELL, Helene HELLRIGL, Eric HENSEN, Heidi HINTNER, Christian HIRNER, Sabrina HIRSCHBERGER, Gerhard HLAVACEK, Erwin HÖGER, Klaus HÖRTNAGL, Christian HÖRTNAGL, Victoria HÖRTNAGL, Nicole HÖRTNAGL, Heinz-Johann HOFER, Paula HOFER, Christine HOFER, Martina HOFER, Barbara HOFLER, Gregor HOHENAUER, Sylvia HOLAUS, Simon HOLZHAM- MER, Hans HOLZKNECHT, Maria HOPPICHLER, Dietmar HOSP, Astrid HOY, Petra HUBER, Julia HUBER, Albert HUEBER, Helmut HUPFAUF, Gerhard HUPFAUF, Lukas HUTER, Elisabeth IGHODARO, Eva JÄKEL, Joachim JAMNIG, Sascha JANESCH, Ingrid JANICKI, Christine JANTSCHER, Maria JEITLER, Monika JENEWEIN, Johann JUNGMANN, Carolin KAIL, Sylvia KAINZ, Daniel KALDINAZZI, Johannes KAMPFER, Claudia KAPELLER, Markus KAPFERER, Barbara KAPPACHER, Sabrina KASERER, Simone KASTL, Margarita KATSCHNIG, Helmut KELMER, Werner KERBER, Josef KEUSCHNIGG, Regina KIRCHMAIR, Angelika KIRCHMAIR, Heidi KIRSCHNER, Johannes KLAUNZER, Andreas KLAUNZER, Ludwig Josef KLEINDL, Roger KLIMEK, Klaus KLINGENSCHMID, Karin KLINGENSCHMID, Jasmin KLINGENSCHMID, Walter KLINGENSCHMID, Christian KLOCKER, Michael KLUCKNER, Natalie KLUCKNER, Sandra KNAUS, Christian KNEISL, Nicole KÖHLBICHLER, Mario KOFLER, Robin KOFLER, Peter KOFLER, Josef KOFLER, Silvia KOFLER, Werner KOLB, Gabriele KOLLREIDER, Johann KOLLREIDER, Claudia KONRAD-HUBER, Nebojsa KOSTIC, Franz KRANEWITTER, Eva KRAPF, Sandra KRIEGL, Peter KRITZINGER, Johannes KRÖLL, Waltraud KRÖLL, Birgit KRUG, Karoline KUEN, Reinhard KUGLER, Melek KULOGLU, Wolfgang KUNZ, Sandy KUSS, Julia LACHBERGER, Bernhard LADNER, Klaus LAMPRECHT, Catrin LAMPRECHT, Stefan LANG, Brigitte LARCHER, Karin LARCHER, Bettina LAX, Dominik LEBEDA, Brigitte LECHLEITNER, Herbert LECHNER, Martin LECHNER, Manuela LECHNER, Andreas LEITINGER, Helga LEITNER, Tamara LENER, Anna LENTNER, Christiane LEUPRECHT, Renate LEZUO, Martin LINSER, Gottfried LIRK, Thomas LOTRITSCH, Patricia LUTZ, Peter MACHAT, Claudia MADL-SCARTEZZINI, Martina MAIACHER, Marion MAIER, Hubert MAIR, Dorothea MAIR, Gregor MARGREITER, Norbert MARGREITER, Christine MARKSTEINER, Anton MARKT, Josef MARTINER, Ingrid MASSANI, Josef MAYR, Christoph MAYR, Helmut MAYR, Karlheinz MAYR, Renate MEDINA-HOFER, Claudia MESSNER, Margit METZLER, Manfred MIGLAR, Carola MIGLAR, Daniel MIKULA, Monika MIMM, Bernhard MITTERMAIR, Manfred MLADEK, Stefan MOLL, Hubert MONAI, Markus MOR, Oswald MOSER, Eva MRAK, Werner MÜLLER, Hubert MÜSSIGGANG, Angelika MÜSSIGGANG, Susanne NAGELE, Ursula NASCHBERGER, Jasmine NEUHAUSER, Alexander NEUNER, Birgit NEUNER, Andreas NEUNER, MBA, Julia NEURAUTER, Franziska NIESCHER, Walter NITZLNADER, Ruth NOCKER-LEDERER, Bernd NÖHRER, Barbara OBERDANNER, Helmut OBERERLACHER, Frank OBERHAUSER, Stefan OBERHOFER, Georg OBERMÜLLER, Günter OBERZAUCHER, Christian OBEX, Monika ÖTTL, Doris OFNER, Michaela ORTNER, Monika ORTNER, Michaela OSS, Karin OSTERMANN, Nicole PARDAT- SCHER, Konrad PARDELLER, Christina PARTL, Thomas PATSCH, Brigitte PEDRINI, Marina PEDRINI, Josef PEER, Julia PENZ, Cornelia PERKOUNIGG, Romina PEROTTI, Edgar PFEIFER, Sonja PFENNICH, Sabine PFERSCHI, Monika PFLANZNER, Martina PFLEGER, Birgit PFURTSCHELLER, Monika PFURTSCHELLER, Marcus PICHLER, Eugenio PIGNATTI, Arlette PILS, Gabriele PINGGERA, Edith PIRKNER M.A., Friedrich PITTRACHER, Josef PITTRACHER, Marlies PLANK, Markus PLATTNER, Nino PLATTNER, Alexandra PLUNGER, Christine POCK, Katharina POHL, Eveline POLIN, Karin PRANGER, Martin PRANTER, Lisa PRATY, Karl PRAXMARER, Ines PRINZ, Gabriela PROBST, Gerhard PROSEN, Christian PRUGGER, Nicole PUCKL, Gertraud PUELACHER, Dietmar PUTSCHNER, Isa RABL, Michael RAGGL, Bettina RAGGL, Angela RAGGL, Dieter RASPOTNIK, Christiane RECHEIS, Wolfgang REDL, Marco REGENSBURGER, Karoline REIDER, Stefanie REIMEIR, Petra REISTER-WALLNÖFER, Fränk REITER, Gabriella REUTER, Christina RHOMBERG, Petra RIEDL, Brigitte RIETH, Silvia RIETZLER, Gerhard RIML, Christa RÖSNER, Stefan ROFNER, Gerhard ROSENDORFER, Christine ROTTENSTEINER, Monika RUDISCH, Helmuth RUECH, Markus RUECH, Thomas RUETZ, Bibiane RUETZ, Stefan RUF, Klaus SAIGER, Manfred SAILER, Patricia SANTA, Thomas SATTLEGGER, Thomas SAURER, Clemens SAURER, Roman SAUTNER, Sylvia SCHAMBERGER, Sandra SCHANDL, Werner SCHARF, Stefan SCHARF, Annemarie SCHEIRING, Sandra SCHELLHORN, Matthias SCHIESTL, Monika SCHLATTER, Markus SCHLENCK, Claudius SCHLENCK, Claudia SCHLITTLER, Martin SCHMADL, Michael SCHMID, Ferdinand SCHMID, Harald SCHMIDER, Karin SCHNAUFERT, Brigitte SCHNEIDER, Richard SCHNELLER, Daniel SCHNIEDERS, Romed SCHÖPF, Brigitte SCHOTT, Hannes SCHREINER, Markus SCHWINGHAMMER, Hubert SEDLMAYR, Andrea SEEHAUSER, Petra SEELAUS, Manuela SEELAUS, Thomas SEIDL, Christian SEISER, Peter SENFTER, Rudolf SENN, Johann SENN, Alexandra SERVIS, Kerstin SIEBENHÜNER, Caecilia SILGENER, Michaela SILVESTRI, Emanuel SORAPERRA-AUGUSZTINYI, Renate SPARBER, Sören SPECHT, Sonja SPECHTENHAUSER, Christoph SPÖCK, Petra SPÖRR, Armin SPRENGER, Markus STABENTHEINER, Carolin STADLER, Rudolf STAFFLER, Carmen STANGLECHNER, Gerhard STAUD, Martin STECHER, Gebhard STEINACHER, Claudia STEINER, Christian STEINER, Patrick STEINKELLNER, Michael STEINLECHNER, Elisabeth STEINRINGER, Monika STERN, Nicole STOISER, Melitta STOLZ, Johannes STOTTER, Markus STREITER, Wolfgang STRICKNER, Inge STROBL, Doris STROBL, Karin STROBL, Elisabeth Charlotte STUBLER, Peter TAUTSCHER, Barbara TAUTSCHER, Johanna TEMPELE, Patrizia THALER, Birgit THALER, Jacqueline THALER, Johann THALER, Helmut THEYER, Elisabeth THÖNI, Daniela THURNER, Markus TOLLINGER, Herwig TRAUNER, Christoph TRAUNFELLNER, Dietmar TRIENDL, Othmar TRIENDL, Katrin TROYER-SOCHER, Notburga TSCHUGG, Claudia TUNNER, Simone UNGERANK, Brigitte UNSINN, Hans Wolfgang UNTERDORFER, Gerd UNTERLECHNER, Johannes UNTERLUGGAUER, Thomas UNTERPERTINGER, Margreth UNTER WEGER, Andrea VERDROSS, Olivia VESELY, Iris VÖTTER, Benjamin VOGLER, Alfred VOLDERAUER, Veronika VOLDERAUER, Patrick WACKERLE, Johann Peter WALLNER, Christine WALLNÖFER, Stephan WALSER, Vanessa WALTER, Sonja Fernanda WANKMUELLER, Barbara WARSCHER, Thomas WASS, Sabine WASS, Philipp WEBER, Tanja WECHSELBERGER, Thomas WECHSELBERGER, Bernd WEIDENTHALER, Thomas WEIDINGER, Nadine WEISIELE, Michael WEISS, Sonja WEITZER, Christine WEIXLER, Evelin WENDE, Wolfgang WENINGER, Detlev WENKO, Markus WIDMANN, Ulrike WIDMOSER, Ingrid WIEDERMANN, Manfred WIESER, Johannes WIESER, Melanie WILD, Urban WINDBICHLER, Elisabeth WINKLER, Regina WINKLER, Yvonne WISIOL, Andrea WITTING, Thomas WÖBER, Claudia WOLF, Maria WOLF, Martina WOMBACHER, Andreas WOPF- NER, Claudia WOTZEL, Maria WURZER, Hubert WURZER, Nazmiye YAYAN, Hannes ZACCHIA, Patrick ZANGERL, Andrea ZANKL, Elfriede ZECHNER, Petra ZEILLINGER, Aegidius ZETTINIG, Werner ZIMA, Stefan ZIMMER, Renate ZIMMERMANN, Erika ZINGERLE, Sabine ZÖHRER, Christian ZOLLER, Markus ZORN, Markus ZWIEFELHOFER

7 12 Raiffeisen in Tyrol Raiffeisen in Tyrol 13 Raiffeisen Banking Group Tyrol The Raiffeisen Banking Group Tyrol (RBGT) forms by far the densest branch network in the federal state, with 81 independent local Raiffeisen banks, RLB Tirol AG and a total of 262 bank branches. This enables us to provide the Tyrol population and local business throughout the region with banking services suited to customers' needs. Raiffeisen advisors focus on advising customers on an individual basis, taking an overall view of their situation. In addition, a wide range of self-service facilities are provided so that customers can conduct the most important banking transactions themselves, saving time and money. expressed, for example, in aggregated total assets of EUR 16,118 million as at the reference date 31 December On that date, Tyrol Raiffeisen banks and RLB Tirol AG managed initial deposits, consisting of demand, time and savings deposits, of EUR 7,895 million fi gures that are a particularly impressive refl ection of customers trust. Tyrol Raiffeisen banks are leaders in the fi nancing of private and corporate customers. As at the reference date 31 December 2009, total lending amounted to EUR 7,729 million. reinvested locally to a large extent. When investments are made, e.g. in business premises, local fi rms are primarily contracted to carry out the work, thus securing and creating jobs. The Raiffeisen Banking Group Tyrol has always stood for security, proximity and trust. It has been making valuable contributions to sport, culture and welfare for more than 120 years. In the year under review alone, RBGT has made available an amount of EUR 5 million from its profi ts for these causes. It goes without saying that young people are the future of our society and, as such, are also a priority for RBGT. With 90,000 members, Tyrol's Raiffeisen Club is the largest leisure association in Western Austria. The appropriate support provided by the 260 Club supervisors in the Tyrol Raiffeisen banks is the basis for youth development schemes. Age-related offers are made by the bank such as the "All-Inclusive Club Package", as well as a broadly based leisure program including reductions, events and support for job seeking and further education. As customer-oriented universal banks and integrated fi nancial services providers, Tyrol Raiffeisen banks are closely allied and in particular also use the services provided by Raiffeisen-Landesbank Tirol AG. The product range offered by the specialised subsidiaries and other companies in which RLB Tirol AG holds a stake also makes a substantial contribution towards covering customer needs to a large extent. The spectrum extends from the fi nancial services provided by the securities fund company Raiffeisen Capital Management to the insurance company Raiffeisen Versicherung, Raiffeisen-Leasing and the building society Raiffeisen Bausparkasse. Each of these plays an important role within their particular segment on the Tyrol market. With some 2,750 attractive and crisis-proof jobs locally or in the regions, Tyrol Raiffeisen banks are one of the largest employers in the federal state. Consequently they also have a particularly important place in the regional value-added chain. The profi ts that the banks generate are not transferred elsewhere, but are In the case of local authorities in Tyrol, RBGT offers a special service, Raiffeisen-Kommunalbetreuung Tirol, which guarantees cost certainty for local authorities when realising their building projects, from planning to handover of the keys. OBERAU Tyrol Raiffeisen banks are currently constructing for their customers the Raiffeisen Home Centre in the recently built Energiehaus park at the DEZ shopping centre in Innsbruck. In cooperation with Tyrol companies, this 300 m² of fl oor space will house an advice, training and exhibition centre. It was built as a "passive house" and provides a full range of home-related services from non-binding advice on fi nancing a property purchase to renovating a building to the highest standard. The Home Centre will also accommodate partners who extend the product range beyond the fi nancing, for example free legal advice or clarifi cation of tax issues, or specialist advice on furnishings. The Raiffeisen Home Centre will also serve as the new premises for IG Passivhaus Tirol. Tyrol Raiffeisen banks operate on the basis of a set of values that has grown over time and is constantly being updated to current needs. They have around 135,000 members who are co-owners from their region or their original market area. One in three Tyrol Raiffeisen members already holds a Raiffeisen membership card, which identifi es the holder as recognising the Raiffeisen set of values. It is also a Maestro card that can be used anywhere in the world, making it an important element in the payments system. Almost half of Tyrol's population is a Raiffeisen bank customer. The proportion of main customers is 42 per cent, placing RBGT in top spot on the Tyrol banking market. This high standing is

8 14 Raiffeisen in Austria Raiffeisen in Austria 15 Raiffeisen Banking Group Austria Structure of the Raiffeisen Banking Group Austria The Raiffeisen Banking Group Austria (RBG) forms the densest branch network in the country, with 541 independent local Raiffeisen banks, a total of 2,263 bank branches, eight regional headquarters at federal state level and Raiffeisen Zentralbank Österreich AG (RZB) as the top-level institution. Around 1.7 million Austrians are members of Raiffeisen banks and consequently co-owners. More than 40 per cent of all Austrians are customers of a Raiffeisen bank. Raiffeisen Customer Guarantee Collective When it introduced the Raiffeisen Customer Guarantee Collective Austria, the Raiffeisen Banking Group was in the vanguard of deposit security. The Collective was formed in In times of globalisation and large-scale mergers, its purpose is to give legally binding effect to principles that had been an unwritten rule within the Group right from the start. 1.7 million members Raiffeisen banks: 541 Raiffeisen banks Regional Raiffeisen banks: 8 regional headquarters, Zveza Bank As a universal banking group, Raiffeisen offers its customers a comprehensive range of fi nancial services. The close alliance, which includes the specialised subsidiaries and other companies in which RZB holds a stake, enables all Austrian Raiffeisen banks to meet the individual requirements of each customer group and to provide an integrated range of services "under one roof". The local Raiffeisen banks are independent universal banks with a consistent, customer-oriented business direction, offering a full range of banking services. The Raiffeisen banks also own their respective regional headquarters. The regional headquarters, such as Raiffeisen-Landesbank Tirol AG in Tyrol, provide liquidity settlement for the federal state and offer additional centralised services for the Raiffeisen banks in their particular federal state. The regional headquarters additionally operate as independent universal banks and are shareholders in Raiffeisen Zentralbank Österreich AG. Raiffeisen Zentralbank Österreich AG (RZB) is the top-level institution of the RBG. Established in 1927, it is now one of the leading commercial and investment banks in Austria. RZB is also a leading fi nancial services provider in Central and Eastern Europe and is a specialist in this growth region. The comprehensive range of fi nancial services provided by Raiffeisen banks includes the services of special-purpose Raiffeisen companies, such as the securities fund company Raiffeisen Capital Management, the insurance company Raiffeisen Versicherung, Raiffeisen-Leasing and the building society Raiffeisen Bausparkasse, which are among the market leaders in Austria. The Raiffeisen Customer Guarantee Collective Austria guarantees up to 100 per cent of customer deposits in addition to Austria's statutory deposit security. By doing so, Raiffeisen sets in stone that for which the trademark Giebelkreuz, a symbol of protection, has always stood, namely security and trust. The Raiffeisen Customer Guarantee Collective Austria comprises the individual customer guarantee collectives at federal state level, all amalgamated at federal level. All these banks have entered into a legally binding obligation based on a precisely regulated system of distribution and exposure. Under this obligation they provide their fi nancial reserves to guarantee customer deposits even in the event of a bankruptcy (which has so far never occurred), above and beyond the statutory deposit guarantee. If the fi nancial capacity of a customer guarantee collective at fede ral state level does not cover all the protected customer claims against an insolvent bank, the members of Raiffeisen Customer Guarantee Collective Austria use their fi nancial reserves to fulfi l all the customer deposits and in-house issues of the relevant institution, up to 100 per cent. Instead of bankruptcy claims, customers are offered valuable claims against other institutions in the Raiffeisen Banking Group. At present around 79 per cent of all Austrian Raiffeisen banks belong to Raiffeisen customer guarantee collectives. As a result, about 93 per cent of the entire customer deposits held by RBG are guaranteed in the Raiffeisen Customer Guarantee Collective Austria (based on 2007 annual fi nancial statements). Shareholdings in Austrian fi nancial institutions Raiffeisen Centrobank Kathrein & Co Raiffeisen Capital Management Raiffeisen Factor Bank Austrian National Bank Kontrollbank PayLife Raiffeisen-Leasing Raiffeisen Bausparkasse card complete UNIQA etc. Network in CEE Raiffeisen International Network banks Leasing International Other subsidiaries Foreign branch offi ces and shareholdings Branches Representative offi ces Banks Special-purpose and settlement companies Payment and securities settlement fi rms IT companies Property & trading fi rms Private equity etc. The Raiffeisen Banking Group has more than 23,000 employees in Austria, making it one of the largest employers.

9 Management Report

10 18 Management Report Management Report 19 Macroeconomic development in 2009 Bank rescue schemes, economic stimulus packages and expansive monetary policies by central banks The year 2009 was ushered in with pessimistic expectations. After the insolvency of the US investment bank Lehman Brothers in September 2008, it quickly became clear that the crisis, which until then had been mainly limited to the fi nancial sector, was also a problem for the real economy. At the start of 2009 many observers even thought that a global depression, as last seen in the 1930s, was defi nitely a possibility. Governments and central banks made unprecedented efforts to prevent the global economy from sliding into a defl ationary downward spiral. As a result, macroeconomic development was underpinned by a number of Western governments through bank rescue schemes and economic stimulus packages, on an unparalleled scale. These measures were accompanied by expansive monetary policies on the part of central banks. In addition to historically low key interest rates (a zero-interest-rate policy was even pursued in the US), central banks provided the capital markets with the necessary liquidity. The measures taken to stabilise the economy and capital markets had an impact. Although the fi rst three months of 2009 were still very weak in many Western economies, there was a turnaround in the second quarter. Weakest year economically since the Second World War In mid-year there were signs indicating an end to the recession, both in the US and in the Eurozone. Of course, this only applies as a quarterly comparison. Viewed over the whole year, 2009 will go down in history as one of the weakest years economically since the end of the Second World War. For 2009, experts estimate the GDP shrinkage rate in the US at around 2.5% and about 4.0% for the Eurozone. In Austria the whole year 2009 could see a decline of 3.6% in comparison with Equity markets in particular responded to the unexpectedly rapid economic stabilisation with a sharp turnaround from March 2009 onwards, while Euro government bonds remained rather directionless throughout the year. The Euro bond market initially tended to be relatively weak as the fi rst concerns about infl ation emerged. Yields rose accordingly. In the second half of the year the bond markets calmed down again, with the yield on 10-year Euro benchmark bonds at year-end only slightly above its level at the start of the year. Corporate bonds, both investment grade and high-yield, were particularly in demand among investors. Commodities also celebrated a comeback in The price of one troy ounce of gold reached USD 1,226.00, a record high. Equity markets place their faith in hope Outlook for 2010 No investment market experienced an emotional roller-coaster ride to the same extent as equity markets over the past 12 months. Major pessimism about the economy was the dominant theme among investors until the market bottomed out in mid-march. As a result the leading equity indices lost a further 20 25% in the fi rst few months in comparison with the price level at the start of the year, which had already been tightly squeezed. Then there was a sharp turnaround. Firstly the important early indicators of economic activity stabilised, such as the US Purchasing Manager Indices or the German Ifo index. This signalled an imminent end to the recession while at the same time triggering an equity rally. For the time being, critical questions as to how far the soaring equity prices corresponded to economic reality took a back seat. On balance the major equity indices saw doubledigit growth in Converted into Euro, of course, the picture is more diverse. European stock markets did better than those quoted in US Dollars or Yen. In Europe the ATX enjoyed particular success, chiefl y because of the previous unjustifi ed sell-off of Austrian stocks, but also due to the gradual rise in confi dence about Eastern Europe. Stock markets in Russia and in China doubled or rose even higher in the past year. These markets also saw the biggest downward correction in 2008, however, such that even these extreme gains could only make up for the previous losses to a certain extent. Directionless government bonds, corporate bonds in demand After an unprecedented bond rally in the second half of 2008, when investors practically fl ed to European government bonds, the Euro government bond market stabilised in 2009 at a relatively low level of yields. Initially, infl ation was the primary concern due to the unchecked supply of liquidity from the central banks. The yield on 10-year Euro benchmark bonds climbed from below 3% to 3.7% by mid-year. In the second half of the year, however, it was acknowledged that the risk of infl ation remains moderate for the time being. The 10-year yield fell back to 3.4% by year-end, only slightly above its level at the start of the year. Corporate bonds were nevertheless the real winners among investors. After the dramatic sell-off of corporate bonds in the wake of the Lehman bankruptcy, this market recovered signifi cantly in There was a proper fl ood of issues because many industrial companies feared being caught in a credit squeeze. In the end the corporate issues were more or less snapped up by investors. The credit spread, i.e. the interest-rate difference between corporate bonds with a good credit rating and government bonds, fell over the course of the year from around 400 to the present level of some 140 basis points. Although this is still considerably higher than the average 50 basis points in the years 2003 to 2007, this fi gure does refl ect the recklessness at that time, culminating in the fi nancial crisis. Austrian economy The Austrian economy was unable to escape the downward economic trend throughout the world. The shrinkage rate of 3.6% of GDP nonetheless placed it above the Eurozone average. From mid-2009 onwards, however, there was a turnaround in the economy, carried along by the expansive economic policy worldwide. This recovery should continue in the next few months, with GDP growth of 1.5% forecast for The international economic crisis became apparent in Austria principally through the slump in exports. They fell by 16.8% in comparison with the previous year, with exports to the new EU member states particularly hard hit. From the middle of the year, however, recovery could also be seen here too, buoyed up primarily by stronger demand from Germany. The situation on the employment market could be described as dramatic. On the one hand, economic stimulus packages, state-sponsored short-time work and youth employment schemes stabilised the demand for labour and curtailed the rise in unemployment. On the other, 56,000 jobs were lost, after seasonal adjustment, since the peak of employment in mid-2008, sending the unemployment rate up to 7.1%. This negative trend on the employment market will continue in In contrast, the economic crisis had a positive impact on the rate of infl ation, which reached a record low of 0.5%.

11 20 Management Report Management Report 21 Business development Raiffeisen-Landesbank Tirol AG can look back on an extraordinary year The overfl ow of the fi nancial market crisis into the real economy resulted in considerable additional expense for credit risk management. The net result was also impaired by an instance of malversation, although no customer suffered any loss as a result. In contrast, operating income and the need to make provisions for securities have performed well. Despite the diffi cult economic climate, a substantial improvement was made to our earnings from ordinary business activities and, in a comparison with our competitors in the sector, we were able to generate a very good net result. Total assets in EUR million Use of funds/asset structure Change EUR m Per cent EUR m Per cent EUR m Per cent Receivables from banks 2, % 2, % % Receivables from customers 2, % 2, % % Securities 1, % 1, % % Shareholdings including shares in affiliated companies % % % Other assets % % % Assets 7, % 6, % % The increase in assets of 9.7 per cent (EUR m) to EUR 7, m was primarily due to an increase in the securities in the company's own possession. Securities in the company's possession rose by 51.3 per cent (EUR m) to EUR 1, m. Receivables from banks rose slightly by 0.8 per cent (EUR m) to EUR 2, m, and receivables from customers by 2.1 per cent (EUR m) to EUR 2, m. Shareholdings including shares in affi liated companies increased by 16.2 per cent (EUR m) to EUR 212,32 m. Other assets decreased by 6.7 per cent (EUR m) to EUR m. Receivables from customers consisted of the following as at year-end 2009: Industry comparison Change compared to total lending EUR k EUR k Per cent Per cent Agriculture, forestry and co-operatives 23,409 23, % 0.9 % Transport 151, , % 6.1 % Commerce 504, , % 20.4 % Industry 155, , % 6.3 % Employed, private individuals 454, , % 18.4 % Tourism, leisure industry 324, , % 13.1 % Public bodies and social security 195, , % 7.9 % Freelancers, self-employed 49,876 51, % 2.0 % Retailing 145, , % 5.9 % Other (housing associations and other non-banks) 470, , % 19.0 % Total 2,474,844 2,424, % % Equity capital (in accordance with Section 23 BWG (Austrian Banking Act)) Change 09/08 EUR k EUR k EUR k EUR k Per cent Subscribed capital 84,950 80,000 80,000 Reserves 258, , ,921 Intangible assets Core capital 343, , ,871 25, % Secondary capital 0 7,043 14,477 Supplementary equity 13,752 7,043 14,477 6, % Equity before deductions 357, , ,348 32, % Deduction in accordance with Section 23 (13) BWG (Austrian Banking Act) ,502 Short-term secondary capital Actual equity 357, , ,846 32, % Equity ratio in accordance with Section 22 BWG (Austrian Banking Act) (> 8%) % 9.68 % % The equity held by Raiffeisen-Landesbank Tirol AG increased by 10 per cent (EUR m) to EUR m in the year under review. The equity ratio is per cent, well above the statutory equity quota of 8 percent as required under Section 22 (1) BWG (Austrian Banking Act).

12 22 Management Report Management Report 23 Net margin Cost/income ratio Income situation Bank branches Return on equity 0.57 % 0.67 % 0.70 % % % % Total profi tability % 4.65 % 5.58 % 0.23 % 0.23 % 0.35 % The net margin is 0.57 per cent, the cost/income ratio is per cent, the return on equity is 4.78 per cent and total profi tability is 0.23 per cent. Source of funds/capital structure Change EUR m Per cent EUR m Per cent EUR m Per cent Liabilities to banks 4, % 3, % % Giro deposits % % % Savings deposits % % % Certificated liabilities 1, % 1, % % Equity capital % % % Other liabilities % % % Liabilities 7, % 6, % % On the liabilities side, the increase in total assets is primarily attributable to a signifi cant rise in liabilities to banks. These rose by 16.8 per cent (EUR m) to EUR 4, m. A signifi cant rise was also recorded by giro deposits, by 12.8 per cent (EUR m) to EUR m, and equity capital by 8.1 per cent (EUR m) to EUR m. The following decreased: other liabilities by 33.9 per cent (EUR m) to EUR m, certifi cated liabilities by 2.1 per cent (EUR m) to EUR 1, m and savings deposits by 0.5 per cent (EUR 3.05 m) to EUR m. Operating income performed positively in It increased by 3.2 per cent (EUR 3.52 m) to EUR m. This was particularly due to the net interest income which increased by 21.4 per cent (EUR m) to EUR m and a slight rise in other operating income by 6.3 per cent (EUR 0.74 m) to EUR m. Income/expenses from fi nancial transactions fell by EUR 2.77 m to EUR 1.80 m. Income from securities and investments also decreased by 16.1 per cent (EUR 2.60 m) to EUR m and income from commission dropped by 9.9 per cent (EUR 2.72 m) to EUR m. Operating expenses increased this year by 10.5 per cent (EUR 6.91 m) to EUR m, due principally to a rise in other operating expenses by EUR 5.24 m to EUR 6.45 m. However, this increase is due exclusively to the one-off effect of the abovementioned malversation. A slight rise was posted by personnel expenses, by 2.9 per cent (EUR 1.19 m) to EUR m, and other administrative expenses by 4 per cent (EUR 0.81 m) to EUR m. On the other hand, depreciation of assets decreased by 8.4 per cent (EUR 0.33 m) to EUR 3.61 m. The balance from provisions for receivables and allocation to provisions for contingent liabilities, as well as income from the reversal of provisions for receivables and from provisions for contingent liabilities increased appreciably by EUR 8.85 m to EUR m as a consequence of the fi nancial market crisis shifting to the real economy. This shifting is also apparent in the substantial reduction in the balance resulting from provisions for securities that are valued like fi nancial investments, and for investments, as well as income from provisions for securities that are valued like fi nancial investments, and for investments, by EUR m to EUR 0.51 m. Despite the diffi cult economic climate, we managed to increase the earnings from ordinary business activities by 10.9 per cent (EUR 1.64 m) to EUR m. As at 31 December 2009, Raiffeisen-Landesbank Tirol AG was represented in the market territory by 23 branches, fi ve of which are self-service. The employees at our branches look after more than 66,500 private and commercial customers. Personnel In the 2009 fi nancial year, Raiffeisen-Landesbank Tirol AG had an average of employees (502.7 salaried employees and 20.8 wage-earners). This represents a decrease of 1.5 per cent in comparison with Income statement Change EUR m EUR m EUR m Per cent Net interest income % Income from securities and investments % Income from commission % Income / expenses from fi nancial transactions % Other operating income % Operating income % Personnel expenses % Other administrative expenses (cost of materials) % Depreciation of assets % Other operating expenses % Operating expenses % Operating result % Balance of reversals from / allocations to the provisions for receivables % Balance of reversals from / allocations to the provisions for securities, investments % Earnings from ordinary business activities %

13 24 Management Report Management Report 25 Risk Report Modern risk management Organisation of risk management Market risk Operational risk Active risk management is a major priority for Raiffeisen-Landesbank Tirol AG to secure its long-term success. In compliance with statutory requirements (BWG (Austrian Banking Act) and Basel II), RLB Tirol AG has set itself the objective of guaranteeing the security and profi tability of the bank in the interests of its customers and owners, by using up-to-date methods and appropriate risk management and controlling systems. Our experience in 2009 has confi rmed that our risk policy, risk management and their organisation are appropriate. Principles of risk policy The principles of risk policy are defi ned by the Board of Managing Directors, and are regularly reviewed and modifi ed as necessary: The Board of Managing Directors and all the employees feel an obligation to comply with the principles of risk policy and make their day-to-day decisions in line with these directives. If the risks are unclear or there are doubts about methodology, the principle of prudence is employed. The introduction of new business areas or products is generally preceded by an appropriate analysis of the specifi c business risks involved (product launch process). Risk management is organised in a manner that prevents confl icts of interest on both a personal and organisational level (separation of front offi ce/back offi ce). The duties and organisational procedures involved in the measurement and monitoring of risks, the limit structure and the actions to be taken should limits be exceeded, are undertaken by Financing and Market Risk Management organisational units and are described in the relevant Raiffeisen-Landesbank Tirol AG manuals. Credit risk The credit risk is calculated for counterparts, banks, investments, countries and concentrations of positions. The extension of loans, i.e. the specifi c acceptance of risk, is one of the core business areas of Raiffeisen-Landesbank Tirol AG. For this reason the Financing Management organisational unit supports the sales units in checking, measuring and controlling the credit risk, as well as managing distressed loans. Various analyses of the existing risk profi le are an integral part of Financing Management reporting. Closing date reports and forecasts are prepared in the course of periodic risk committee meetings. Market risk consists of the risks incurred through interest rate changes, currencies and prices resulting from positions held in securities, interest rates and foreign exchange. Market risk arises both in trading and non-trading transactions. Raiffeisen-Landesbank Tirol AG uses a combination of various risk parameters in order to control market risks and set appropriate limits. Market risk is managed by the Treasury organisational unit, where all interest rate, currency and price positions are systematically compiled and appropriately controlled. In addition to the lending business, Raiffeisen-Landesbank Tirol AG's own transactions are one of its core business areas. The Market Risk Management organisational unit supports the Treasury in the pre- and post-control of market risks. Identifying, measuring, aggregating and monitoring the market risks (limits) and reporting constitute the principal areas of responsibility for Market Risk Management. Special attention is paid to the systematic monitoring of strategy and hedge positions as part of dynamic risk monitoring. Daily risk/performance analyses and reports ensure that, despite volatile fi nancial markets, the Treasury organisational unit can apply the appropriate control measures. Operational risks are managed in a separate organisational unit at RLB Tirol AG. All risks that could arise due to errors in systems, processes, employee misconduct or external events, are analysed, assessed and suitable counter-measures are taken. The equity requirement for operational risk is calculated using the basic indicator method. Risks are presented and processed using modern computer systems. Regular checks by Internal Audit ensure that operational risks are managed appropriately. Risk-bearing capacity As part of overall risk control at the bank, the bank's potential for covering risks is balanced against all major risks, which are determined using the latest methods and appropriate systems. The annual risk-bearing capacity fi gure represents the limit for the total bank risk. Non-quantifi able risks are taken into account by means of a "risk buffer" as well as the actual measured risk. All risk-related information is included in the monthly risk-bearing capacity analyses. They determine total bank risk using various scenarios in order to ensure that suffi cient capital would be available in diffi cult situations. Principles of risk management Our risk management approach is based on the following principles: The Board of Managing Directors bears overall responsibility for risk management supervision within Raiffeisen-Landesbank Tirol AG, while the Supervisory Board reviews the bank's risk policy at regular intervals. Loan, market, liquidity and operational risks are managed as a coordinated process at all the relevant levels of the bank. The risk committee prepares and proposes the risk strategy, the limitation of risk capital within the scope of risk-bearing capacity as well as risk capital allocation. Risk assessment and control methods have been developed and implemented in line with the principle of proportionality. Different weightings are given to the risk content of loans in the relevant calculations. On the basis of supervisory requirements and recommendations, and to provide business management benefi ts, RLB Tirol AG has set itself the task of continually developing and improving the risk management process. The risk presented by a borrower is considered on two dimensions using an in-house rating system. This involves an ongoing assessment of the business situation on the one hand, and the evaluation and review of collateral to reduce risk on the other. When supplemented by aggregation, control, monitoring and checking, this ensures a risk management process that is active at every stage. The related tasks and organisational procedures, as well as the credit risk strategy approved by the Board, are clearly described in the Raiffeisen-Landesbank Tirol AG credit manual. They have also been communicated to all personnel with executive functions and are additionally available online. This ensures that in each particular case, only risks that comply with our risk policy are actually incurred. In addition, suffi cient provisions are formed for existing risks in line with the principle of commercial prudence. Liquidity risk The refi nancing of loans at matching maturities is highly important at Raiffeisen-Landesbank Tirol AG. This strategy is supplemented by a liquidity parameters system and the corresponding limits, with a distinction made between short-term (operational) and long-term (strategic) liquidity control. Market Risk Management checks that these limits are adhered to. A suffi cient supply of short-term and long-term liquidity for possible bottlenecks is included in the bank's liquidity plans and this topic is regularly discussed by the risk committee. In order to strengthen its liquidity position, Raiffeisen-Landesbank Tirol AG has extended its issuing volume and its portfolio of securities that can be refi nanced, among other measures. Additional control instruments are being developed in the context of proactive liquidity control. The key factors in Raiffeisen-Landesbank Tirol AG risk management processes are credit and market risks, as the focus of bank business is on retail and commercial customers and treasury transactions. The market risk resulting from trading books and banking books is calculated using sensitivity parameters, while credit risk is analysed using probabilities of default.

14 26 Management Report Management Report 27 Deposit security Outlook for 2010 As well as market-related risks, operational risks are recorded and calculated within the scope of overall bank management. On the one hand the purpose is to describe all the risks, and to accommodate the developments relating to Basel II on the other. This analysis of risk-bearing capacity is therefore the starting point for limiting risk activities to a level acceptable to the bank, with the aim of securing its continued viability as a problem-free entity and appropriately utilising its income potential. Solidarity Association of the Tyrol Raiffeisen fi nancial organisation Together with Raiffeisen-Landesbank Tirol AG, the Raiffeisen banks of the Raiffeisen Banking Group Tyrol have set up a Solidarity Association which ensures, through appropriate measures, that association members who have run into fi nancial diffi culties receive help. Raiffeisen Customer Guarantee Collective Austria Deposit security institutions of the Raiffeisen Banking Group Austria The member institutions of the Raiffeisen Banking Group Tyrol are jointly members of the Austrian Raiffeisen deposit security organisation egen through the Raiffeisen deposit security agency Tirol egen. This deposit security cooperative is the liable institution for the entire Raiffeisen Banking Group in accordance with Sections 93, 93a and 93b BWG (Austrian Banking Act). For the purposes of deposit security, an appropriate earlywarning system has been implemented in the Raiffeisen Banking Group Austria. Based on a comprehensive reporting system, it carries out continuous analyses and observations of income and risk development on the part of all member institutions. The general economic situation has stabilised to some extent in the second half of 2009 and this trend should continue in This positive picture is nevertheless largely due to government stimulus and rescue packages. As a result we do not expect any rapid and sustained economic recovery for Tyrol. Instead, economic conditions will remain tough, with rising numbers of insolvencies and higher unemployment. In 2010, Raiffeisen-Landesbank Tirol AG will continue along the path of risk-aware and earnings-oriented growth, with a consistent focus on the customer business. We intend to tap systematically into our potential in terms of our existing customers and to acquire new customers through a market campaign. We will set new benchmarks in the quality of the overall advice offered, based on defi ned standards for customer care and advisory services. We will focus on optimising, standardising and centralising our settlement and support processes. For this reason, on 1 April 2010 we will outsource payments, back offi ce, balance sheet analysis and property valuation to our newly established subsidiary for settlement and services, Raiffeisen Abwicklungs- und Dienstleistungsgesellschaft. We will also reinforce our customer business in the market campaign by engaging professional sales support. In order to counteract the challenging economic conditions, we will continue to place emphasis on identifying and utilising productivity potential in We are well aware that our committed employees are crucial to the success of Raiffeisen-Landesbank Tirol AG. For that reason we develop our staff towards specifi c objectives, with particular emphasis on customer orientation at every stage. We are extending our partnership and cooperation with the Tyrol Raiffeisenbanks on the basis of our shared strategic direction. We are making consistent use of existing synergies to consolidate our market position as the leading banking group. We continue to view the economic crisis as a challenge, but also as an opportunity for Raiffeisen-Landesbank Tirol AG, the toplevel institution of the Raiffeisen Banking Group Tyrol. There are no comments on research and development due to industry considerations. We have not become aware of any events of special signifi cance that occurred after the close of the 2009 fi nancial year. This association, consisting of Raiffeisen banks, Raiffeisen regional banks and Raiffeisen Zentralbank Österreich AG, provides a mutual guarantee on all customer deposits and the banks' own securities issues, irrespective of the amount. The customer guarantee collective is organised on two levels: at regional level on the one hand, and the Federal Guarantee Collective on the other. The Customer Guarantee Collective thus ensures security for customers, over and above the statutory deposit guarantee. The Board of Managing Directors of Raiffeisen-Landesbank Tirol AG Dr Hannes Schmid Chairman of the Board Reinhard Mayr Gobert Sternbach Dr Hans Unterdorfer

15

16 30 31 Balance Sheet as at 31 December 2009 Assets Balance Sheet as at 31 December 2009 Liabilities EUR EUR EUR k EUR k 01. Cash in hand, balances at central banks and post giro offi ces 28,978, , Public-sector debt issues and bills of exchange eligible for refi nancing at the Austrian Central Bank: a) Public-sector debt issues and similar securities 692,503, ,420 b) Bills of exchange eligible for refi nancing at central banks ,503, , Receivables from banks a) Payable on demand 837,429, ,103 b) Other receivables 2,001,446, ,838,876, ,045,272 2,817, Receivables from customers 2,474,843, ,424, Bonds and other fi xed-interest securities a) From public-sector issuers b) From other issuers 847,043, ,043, , ,600 of which: the bank's own bonds (0.00) (0.00) 06. Shares and other nonfi xed-interest securities 84,910, , Investments 189,975, ,336 of which: in banks (179,809,928,31) (147,594) 08. Shares in affi liated companies 22,342, ,342 of which: in banks (0.00) (0.00) 09. Intangible fi xed assets 3, Tangible assets 48,935, ,234 of which: land and buildings used by the bank for its own operations (23,485,743.21) (23,683) 11. Own shares or interests and shares in companies where a controlling or majority holding is held of which: nominal value (0.00) (0.00) 12. Other assets 66,797, , Subscribed capital that has been called in, but not yet paid up Prepayments and deferred income 676, ,263 of which: deferred taxes in accordance with Section 198 (10) UGB (Austrian Commercial Code) (0.00) (0.00) TOTAL assets 7,295,885, ,653, EUR EUR EUR k EUR k 01. Liabilities to banks: a) Payable on demand 1,736,815, ,978,669 b) With an agreed term or period of notice 2,660,564, ,397,380, ,786,749 3,765, Liabilities to customers: a) Savings deposits 587,302, ,346 of which: aa) Payable on demand (0.00) (0) bb) With an agreed term or period of notice (587,302,031.37) (590,346) b) Other liabilities 747,746, ,335,048, ,720 1,253,066 of which: aa) Payable on demand (506,744,080.56) (408,652) bb) With an agreed term or period of notice (241,002,029.19) (254,068) 03. Certifi cated liabilities: a) Bonds issued b) Other certifi cated liabilities 1,075,886, ,075,886, ,099,378 1,099, Other liabilities 71,651, , Deferred expenses 2,207, Provisions: a) Provisions for severance payments 8,587, ,061 b) Provisions for pensions 24,293, ,591 c) Provisions for taxes d) Other 17,043, ,924, ,496 50, 'A' fund for general bank risks Subordinated liabilities , Supplementary capital 13,846, , Subscribed capital 84,950, , Capital reserves: a) Committed 79,342, ,968 b) Uncommitted ,342, , Revenue reserves: a) Statutory reserves 8,495, ,000 b) Reserves required under Articles of Association c) Other reserves 96,120, ,615, ,230 96,230 of which: Committed reserves (11,641,930.57) (11,642) Reserves stipulated in Section 225 (5) UGB (Austrian Commercial Code) (0.00) (0) 12. Liability reserves stipulated in Section 23 (6) BWG (Austrian Banking Act) 67,200, , Profi t for the year 6,404, , Untaxed reserves a) Valuation reserve due to special depreciation 7,429, ,570 b) Other untaxed reserves ,429, ,570 of which: aa) Investment reserve under Section 9 EStG (Austrian Income Tax Act) 1988 (0.00) (0) bb) Investment exempt amount under Section 10 EStG (Austrian Income Tax Act) 1988 (0.00) (0) cc) Rent reserve under Section 11 EStG (Austrian Income Tax Act) 1988 (0.00) (0) dd) Transfer reserve under Section 12 EStG (Austrian Income Tax Act) 1988 (0.00) (0) TOTAL liabilities 7,295,885, ,653,624

17 32 33 Below-the-line items Income Statement 2009 Page 1 Balance sheet as at Balance sheet as at EUR EUR EUR k EUR k re ASSETS: 01. Foreign assets 661,150, ,309 re LIABILITIES: 01. Contingent liabilities 186,999, ,594 of which: a) Accepted and endorsed bills sold (0.00) (0) b) Liabilities resulting from guarantees and liability arising from the furnishing of collateral (186,886,205.88) (160,346) 02. Credit risks 264,942, ,354 of which: liabilities arising from repos (0.00) (0) 03. Liabilities arising from trust companies Deductible equity in accordance with Section 23 (14) 357,283, ,882 of which: equity in accordance with Section 23 (14) 7 (0.00) (137) 05. Mandatory equity in accordance with Section 22 (1) 270,970, ,399 of which: mandatory equity in accordance with Section 22 (1) 1 and 4 (270,961,711.13) (268,263) 06. Foreign liabilities 1,327,308, , Hybrid capital in accordance with Section 24 (2) 5 and EUR EUR EUR k EUR k 01. Interest and interest-related income 201,610, ,899 of which: from fi xed-interest securities (51,194,004.92) (20,731) 02. Interest and interest-related expenses 139,961, ,119 I. Net interest income 61,648, , Income from securities and investments a) Income from shares, other stocks rights and non-fi xed-interest securities 2,569, ,234 b) Income from investments 9,778, ,161 c) Income from shares in affi liated companies 1,184, ,532, ,737 16, Income from commission 31,190, , Expenses on commission 6,428, , Income / expenses from fi nancial transactions 1,802, , Other operating income 12,419, ,682 II. Operating income 114,164, , General administrative expenses a) Personnel expenses 41,528, ,338 of which: aa) Wages and salaries (27,005,868.65) (26,829) ab) Expenses for mandatory social security contributions and payroll taxes and mandatory contributions (7,034,941.15) (6,820) ac) Other social security expenses (1,070,984.75) (1,152) ad) Expenses for pension schemes and support (3,629,040.33) (3,417) ae) Allocations to pension provisions (1,702,382.25) (937) af) Expenses for severance payments and contributions to occupational employee pension funds (1,084,844.78) (1,183) b) Other administrative expenses (cost of materials) 21,236, ,764, ,434 60, Provisions for assets contained in items 09 and 10 on the assets side 3,619, , Other operating expenses 6,453, ,212 III. Operating expenses 72,837, ,925 IV. Operating result 41,327, ,717

18 34 35 Income Statement 2009 Page EUR EUR EUR k EUR k IV. Operating result (carried forward) 41,327, , /12. Balance from provisions for receivables and allocation to provisions for contingent liabilities, as well as income from the reversal of provisions for receivables and from provisions for contingent liabilities -24,106, , /14. Balance resulting from provisions for securities that are valued like fi nancial investments, and for investments, as well as income from provisions for securities that are valued like fi nancial investments, and for investments -509, ,387 V. Earnings from ordinary business activities 16,711, , Extraordinary income of which: withdrawals from the fund for general bank risks (0.00) (0) 16. Extraordinary expenses of which: allocations to the fund for general bank risks (0.00) (0) 17. Extraordinary result (subtotal of items 15+16) Income taxes -1,202, Other taxes, unless reported in item , VI. Net profi t 14,895, , Movements in reserves -8,494, ,797 of which: allocation to the liability reserves (250,000) (3,190) reversal from the liability reserves (0.00) (0) VII. Net income 6,401, , Profi t brought forward 2, Notes: Accounting and valuation principles General principles The annual fi nancial statements were prepared in line with the principles of orderly accounting, as well as the generally accepted standard that a true and fair view of the assets, fi nancial position and income situation of the company be provided. The principle of completeness was observed during the preparation of the annual fi nancial statements. The principle of individual valuation was observed during the valuation of assets and debts and the going concern principle was assumed. The principle of prudence was observed insofar as only those profi ts realised as at the balance sheet date were reported. All identifi able risks and impending losses were taken into account. Currency translation The currencies of the member states in the European Monetary Union were reported at the fi xed conversion rate. In accordance with Section 58 (1) BWG (Austrian Banking Act), amounts in foreign currencies are converted at ECB reference rates. If these are not published, such amounts are converted at mean foreign exchange rates (RZB fi xing). Forward transactions are converted at the forward rate on the balance sheet date in accordance with Section 58 (2) BWG (Austrian Banking Act). Securities Fixed-interest securities held as fi xed assets were valued according to the moderated lower of cost or market principle in accordance with Section 56 (2) BWG (Austrian Banking Act). Other securities held as fi xed assets were valued according to the strict lower of cost or market principle. Securities serving as cover stock for trust funds were regarded as fi xed assets and valued according to the strict lower of cost or market method in accordance with Section 2 (3) Austrian Trust Fund Security Regulation. Securities held as trading stock and as current assets were valued according to the strict lower of cost or market method in accordance with Section 207 UGB (Austrian Commercial Code). Current asset securities acquired as cover for the bank's own issues were valued at market value. The securities derived from the bank's own issues held in current assets were reported at the repayment amount. Loans, contingent liabilities and credit risks Specifi c provision for bad debts or provisions were made for identifi able risks with borrowers. Additional charges are recognised as income in the year of granting the loan. A general provision for bad debts is applied in the case of selected industry risks. Investments Investments are valued at cost of acquisition. Extraordinary depreciation was applied where an impairment that is expected to be permanent occurred as a consequence of continuing losses, reduced equity and/or reduced income. VIII. Profi t for the year 6,404, ,403

19 36 37 Explanatory notes on balance sheet items Tangible and intangible assets Tangible assets are valued at the cost of acquisition or production less scheduled depreciation in accordance with Section 55 (1) BWG (Austrian Banking Act), in conjunction with Section 204 UGB (Austrian Commercial Code). Additions made in the fi rst half of the year were fully depreciated, while those in the second half were reported at half the depreciation for the year. Low-value assets were fully written-off in the year of purchase. The service life used as a basis for scheduled depreciation amounted to 5 67 years for immovable assets, 3 20 years for movables and 4 years for intangibles. Extraordinary depreciation was used where a permanent impairment was probable. Costs for the bank's own issues Issue costs and premiums or discounts are allocated on a straight-line basis over the life of the bonds. Pension provisions The provisions for pensions are calculated according to recognised actuarial principles using the modifi ed Pagler & Pagler tables (AVÖ 2008) and the partial value method at an interest rate of 4% for entitlements, taking into account the individual age of retirement. A deduction for fl uctuations was not applied. Monetary value adjustments were taken into account by applying the real interest rate. Provisions for severance payments and similar obligations The obligations relating to severance payments as at the balance sheet date are calculated using actuarial principles and an interest rate of 4 per cent, taking into account the individual statutory retirement age. The provision for obligations relating to long-service payments was calculated according to actuarial mathematical principles in a manner analogous to that used for severance payments. A deduction for fl uctuations was not applied. Monetary value adjustments were taken into account by applying the real interest rate. Other provisions In line with the principle of prudence, the other provisions covered all risks that were identifi able when the balance sheet was prepared, as well as liabilities that were probable or certain, but for which the amount was uncertain, to an amount deemed necessary by reasonable commercial judgement. Liabilities Liabilities are reported at the nominal value or repayment value, whichever is higher. Note on the disclosure media in accordance with Section 26 BWG (Austrian Banking Act) Under Section 26 BWG (Austrian Banking Act), banks have to disclose information on their organisational structure, their risk management and their risk capital situation at least once per year. This information is published on the website of RLB Tirol AG ( Periods to maturity The receivables from banks not payable on demand have the following periods to maturity: Residual term to maturity Previous year in EUR in EUR k Up to 3 months 1,518,078,091 1,723,911 More than 3 months and up to 1 year 164,799,940 86,895 More than 1 year and up to 5 years 156,453,760 77,992 More than 5 years 162,114, ,473 The receivables from non-banks not payable on demand have the following periods to maturity: Residual term to maturity Previous year in EUR in EUR k Up to 3 months 254,457, ,470 More than 3 months and up to 1 year 499,113, ,396 More than 1 year and up to 5 years 554,624, ,561 More than 5 years 968,896,595 1,032,828 The liabilities to banks not payable on demand have the following periods to maturity: Residual term to maturity Previous year in EUR in EUR k Up to 3 months 1,738,434, ,274 More than 3 months and up to 1 year 481,352, ,334 More than 1 year and up to 5 years 337,164, ,787 More than 5 years 103,613, ,354 The liabilities to non-banks not payable on demand have the following periods to maturity: Residual term to maturity Previous year in EUR in EUR k Up to 3 months 182,992, ,721 More than 3 months and up to 1 year 272,989, ,645 More than 1 year and up to 5 years 265,581, ,439 More than 5 years 106,244, ,610 The bank's own bonds and other fi xed-interest securities amounting to EUR 156,176,064 (previous year: keur 298,518) will mature in 2010.

20 38 39 Securities The securities admissible for stock exchange listing included in items 5 and 6 on the asset side are divided into listed and non-listed securities as follows: 2009 Listed 2008 Listed 2009 Non-listed 2008 Non-listed in EUR in EUR k in EUR in EUR k Bonds and other fi xed-interest securities 11,694,449 99, ,155, ,887 Shares and other non-fi xed-interest securities 11,990,000 11,990 25,700,379 28,245 The securities admissible for stock exchange listing included in items 5 and 6 on the asset side are divided as follows, based on type of valuation: 2009 Valued like fi xed assets 2008 Valued like fi xed assets 2009 Not valued like fi xed assets 2008 Not valued like fi xed assets in EUR in EUR k in EUR in EUR k Bonds and other fi xed-interest securities 819,739, ,112 9,111,075 7,155 Shares and other non-fi xed-interest securities 35,784,760 37,740 1,905,619 2,494 The listed securities are used for long-term investment. The securities not valued as fi xed assets were acquired for the purpose of securities trading. RLB Tirol AG maintains a large securities trading book which currently contains securities with a volume of up to keur 10,000. Other assets Other assets include accrued interest of EUR 46,220,276 (previous year: keur 57,925), which affect payments after the balance sheet date. Provisions and other liabilities In addition, other liabilities include interim bookings with future value dates amounting to EUR 11,115,131 (previous year: keur 0) and accrued interest of EUR 37,759,170 (previous year: keur 28,827) and foreign currency valuations of derivatives of EUR 7,396,820 (previous year: keur 74,726), which affect payments after the balance sheet date. Supplementary information The balance sheet contains the following foreign currency amounts converted into euros: Assets 2009 Assets 2008 Liabilities 2009 Liabilities 2008 in EUR in EUR k in EUR in EUR k 1,859,785,905 2,021,317 1,470,147, ,081 The following derivative fi nancial instruments were held at the balance sheet date: Banking book Trading book Total Positive market value Negative market value in EUR k in EUR k in EUR k in EUR k in EUR k Interest rate derivatives Interest rate swaps ,596, ,596,340 96, ,764 Previous year 3,430, ,430,853 81,872 50,205 Forward interest rate transactions Previous year 50, , Interest rate options call , ,914 6,039 1 Previous year 77, ,233 1,612 0 Interest rate options put , , ,957 Previous year 70, , ,031 Exchange rate derivatives Forward foreign exchange transactions , , Previous year 12, , Currency options , , Previous year 1, , Currency/interest rate swaps , ,711 2,465 9,053 Previous year 1,579, ,579,242 1,350 77,416 The market value is the amount for which fi nancial instruments could be bought or sold on fair conditions as at the balance sheet date. Stock exchange prices were used for the valuation, if available. For fi nancial instruments without stock exchange prices, internal valuation models were used with current market parameters, especially the cash method and option price models. As at , securities with a nominal value of EUR 5,000,000 (previous year: keur 4,805) serve as cover stock for trust fund savings deposits of EUR 4,307,404 (previous year: keur 3,316). In addition, a trading deposit of EUR 0 (previous year: keur 1,000) was deposited at the OeKB for Xetra Vienna, and of EUR 0 (previous year: keur 1,000) at Deutsche Börse Clearing AG for Xetra Frankfurt. Raiffeisen Zentralbank Österreich AG was provided with sureties of EUR 37,300,000 (previous year: keur 88,300) and the OeNB was provided with EUR 101,400,000 (previous year: keur 688,900) for the ECB tender procedure. In addition, securities valued at EUR 996,900,000 (previous year: keur 0) were used for the repo transactions via SIX SIS AG. Securities valued at EUR 7,600,000 (previous year: keur 8,600) were deposited for settling securities transactions, as well as securities valued at EUR 0 (previous year: keur 400) for options transactions. In addition, EUR 25,000,000 (previous year: keur 26,800) was deposited as sureties for liabilities to banks, and EUR 10,000,000 (previous year: keur 11,000) for GSA/supply of cash. Loans of EUR 3,987, (previous year: keur 4,017) were granted to Österreichische Kontrollbank AG, of EUR 111,876, (previous year: keur 58,747) to the European Investment Bank and of EUR 119,470, (previous year: keur 0) to the OeNB.