RLB Annual Report 2015

Management report

Outlook for 2016

Economy: mixed but positive

Although the economic forecasts for 2016 are patchy, they are also

very positive in many areas. The USA, in particular, is again likely

to be dependable in the year ahead. The world’s biggest economy

has achieved de facto full employment. Incomes of private house-

holds are consequently increasing as well, which in turn should

stimulate private consumption as a potential driver of growth. At

the same time, however, it also means that wages, salaries and

inflation will soon begin to increase more strongly and therefore

make interest rate increases unavoidable.

Interest rates remain low

In Europe, we are anticipating – thanks to a variety of positive fac-

tors and successful reforms in most of the peripheral countries –

an acceleration of growth. The European Central Bank (ECB), how-

ever, is unlikely to reach its desired inflation target of just under two

per cent for some considerable time. It would therefore be expedi-

ent for the ECB to extend its monthly bond purchases to beyond

March 2017. As a result, it cannot be assumed that the interest rate

landscape is going to change substantially in the next three to four

years.

Always the focal point: our customers

In a banking sphere whose level of digitalisation is visibly increas-

ing apace, it is therefore more important than ever that we make

our customers the focal point of everything we do. In the process,

we set great store by, in particular, the quality of advice provided

and a personal relationship. We are still the regional bank whose

pledge is to be the dependable partner of Tyroleans. As part of our

multichannel strategy, moreover, we regard it as important to of-

fer our customers quick, simple and convenient sources of contact

and advice. That is why, in 2016 as before, we are systematically

cultivating our desired role as the digital regional bank.

Further increase in quality of advice and guid-

ance

In the private and commercial customers segment, we are contin-

uing with the model launched successfully in 2015 for dual guid-

ance in the residential and investment areas. This is how we are

safeguarding our high quality standard in these two complex ad-

visory fields. The establishment of the umbrella brand Raiffeisen

Immobilien and the concomitant launch of an in-house real estate

brokerage are strengthening our external professional presence

additionally in the residential segment. We are achieving increas-

es in productivity and efficiency with a new customer segmentation

system and the systematic implementation of the adapted guid-

ance processes that build upon these.

Strong partnerships on an equal footing

In the corporate customers segment, we intend to continue ex-

panding our collaboration with the Tyrolean Raiffeisen banks by

way of the Tyrolean syndicated model. Small and medium-sized

businesses remain one of our most important customer groups

and, in 2016 as before, we intend to earn their approval with made-

to-measure offers. Thanks to the targeted acquisition of new cus-

tomers, we are continuing to increase our customer proportions

while defending our market leadership. As a complement to the

endeavours in the private and commercial customers segment, we

are intensifying our cooperation with real estate developers with re-

spect to commercial customers.

Geared optimally to the future

Increasing competitive pressure and the continuous changes in

specifications and regulations issued by the supervisory authori-

ties are bringing about a structural transformation in the banking

sector. We want to guide the necessary changes within the Raiffei-

sen Banking Group Tyrol actively while giving our owners optimum

support as agenda setters. By maintaining a lived spirit of cooper-

ation within the scope of the Raiffeisen principle, we are creating

the necessary framework for the continuation of our successful de-

velopment.

New statutory provisions: Amending law on

account rendering

The provisions of the Austrian amending law on account render-

ing 2014 (RÄG 2014) came into effect on 20 July 2015 and must be

applied for account rendering in the financial years that begin af-

ter 31 December 2015. This is not expected to have any significant

effect on Raiffeisen-Landesbank Tirol AG in 2016 – apart from the

capitalisation of deferred taxes.

Management board back to full strength

As of 2016, Raiffeisen-Landesbank Tirol AG’s management board

is complete again: in addition to Dr Johannes Ortner, who will

switch to Raiffeisen-Landesbank Tirol AG as management board