BKB Annual Report 2014

Transcrição

Bremer Kreditbank AG –
Annual
Report
7,050
4,464
4,910
The bank’s development in recent years
0
1
12,195
2,383
3,681
17,505
Preamble
16,089
12,793
11,163
8,401
5,000
6,808
10,000
9,709
15,000
15,506
20,526
20,000
2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
2014
Net profit in kEUR
Table of contents
2014 – A Year of Positive Changes
Another year lies behind us, a year that has fully confirmed the sustainability
of our successful business policy. The change of shareholders was thoroughly
0
7,050
12,195
2,383
2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
2014
368,152
'08 '09 '10 '11 '12 '13 2014
350,000
0
268,736
258,925
246,542
251,705
239,008
187,982
134,039
124,337
119,680
112,881
56,305
145,196
200,000
218,482
250,000
245,220
300,000
50,000
5
With regard to our growth strategy, our objective to significantly increase the
5Appreciation
5
capital base of the bank in 2014 once again has been achieved. In addition to
Clear Positioning and a unique Appearance
6
issuing a subordinated bond.
Balance sheet as per 31.12.2014
8
In this context we would like to extend our gratitude to our shareholders’
Income statement
10
our shareholders’ direct injection into the capital reserves, we succeeded in
expertise. With that, our liquidity supply has never been better and the
5
transition to our own rating system has been a great success.
Notes
Notwithstanding the high one-off expenditures as part of the change of name,
Annex to the financial statements
30
Management Report 1 Fundamentals, business model, goals, strategy
31
All in all, very good reasons to be pleased – and our customers have their
confidence in BKB Bank confirmed.
2000 '01 '02 '03 '04 '05 '06 '07
100,000
5
Yours,
0
150,000
3 Change Management
We very much look forward to being by your side in 2015.
268,736
258,925
246,542
251,705
239,008
218,482
187,982
145,196
134,039
124,337
119,680
112,881
50,000
56,305
100,000
245,220
300,000
150,000
2Transparency
Kreditbank AG – BKB Bank for short.
continue to play a successful part in a challenging market environment.
368,152
350,000
200,000
October 2014 it finally happened: KBC Bank Deutschland became Bremer
11
we have generated an annual surplus of more than EUR 7m and therefore
Equity/Profit participation capital/Subordinated liabilities in kEUR
250,000
Bremer Kreditbank AG 3
1 Sustainability
3
4Security 3,681
17,505
prepared well in advance with the support of everyone involved. On 1st
16,089
12,793
11,163
8,401
6,808
4,910
5,000
4,464
10,000
9,709
15,000
15,506
20,526
20,000
Executive and Supervisory Boards 2
Axel Bartsch, Chairman of the Executive Board
32
2 Economic report
36
3 Subsequent events
44
4 Forecast
44
5 Risk report 46
Audit opinion
60
Report of the Supervisory Board 61
Contacts
64
Special functions
67
Legal notice
67
Bremer Kreditbank AG
Balance sheet structure
in kEUR
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Balance sheet structure
in kEUR
Balance sheet total
506,414
1,309,405
1,190,250
1,630,649
1,685,767
1,918,644
2,039,301
2,434,886
2,634,069
2,381,060
2,543,446
2,587,179
2,607,737
2,187,591
1,825,152
Balance sheet total
Receivables from customers
367,550
730,270
863,688
1,011,543
1,155,120
1,297,354
1,589,639
1,852,675
2,219,199
2,010,861
1,954,358
2,057,291
2,138,086
1,924,421
1,483,780
Equity/
Profit participation capital/
Subordinated liabilities
56,305
112,881
119,680
124,337
134,039
145,196
187,982
218,482
239,008
245,220
251,705
246,542
258,925
268,736
368,152
Equity/
Profit participation capital/
P&L structure in kEUR
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
P&L structure in kEUR
Net interest income
9,653
14,729
18,578
25,847
29,933
31,787
34,904
40,757
59,474
72,370
69,076
69,506
68,546
63,709
57,350
Net interest income
Net commission income
8,186
8,292
8,462
7,267
6,929
7,328
7,646
8,860
8,416
8,360
8,396
9,568
8,706
7,901
6,380
Net commission income
General administration costs
13,318
14,178
14,423
13,776
14,714
15,370
17,904
20,244
22,995
23,051
22,878
24,114
27,827
29,077
35,773
General administration costs
Result from ordinary business
4,926
4,456
8,961
9,801
18,518
21,009
22,003
25,961
30,387
26,248
20,382
5,904
3,119
18,245
4,432
Result from ordinary business
Net profit
4,910
4,464
6,808
8,401
9,709
11,163
12,793
15,506
20,526
17,505
16,089
3,681
2,383
12,195
7,050
Net profit
Executive and Supervisory Boards
Executive Board
Axel Bartsch (chairman)
Executive board of the bank
Jens Rammenzweig since 1st February 2015
Guy Snoeks until 31st January 2015
Supervisory board
2 | 3
The success of BKB Bank has continued in 2014 to be based on 5 values:
1. Sustainability
BKB Bank is thinking in terms of generations and always acts in the interest of long-term success.
These qualities are the reason why medium-sized enterprises have valued us for more than 150
years. And for more than 150 years the relationships with our customers have been based on trust,
consistency, and mutual respect. A close proximity and personal contact are the two most important
factors to us. This is why we have established branches in all economic centers throughout Germany.
Dr Ernst Thomas Emde (chairman) since 1st October 2014
Lawyer, Frankfurt am Main, Germany
Dr Dirk Hoffmann (deputy chairman) since 1st October 2014
Lawyer, Rum, Austria
Gernot Wilhelm Friedrich Löhr since 1st October 2014
Investment Professional, London, United Kingdom
Dr Manfred Puffer since 8th October 2014
Senior Investment Advisor, Mehrbusch, Germany
Brent George Geater since 1st October 2014
Investment Manager, London, United Kingdom
Sascha Säuberlich since 8th October 2014
Manfred Jarczak
Employee representative for bank employees
Bremer Kreditbank AG, Bremen
Konrad Markus Rempe
Peter Steding since 11th December 2014
Dr Wolfgang Schrörs (chairman) until 30th September 2014
Managing partner Dr Schrörs
Vermögensverwaltungsgesellschaft mbH & Co. KG, Bremen
Here, our relationship managers serve our customers with our broad range of expertise and many
years of experience.
Our branches
Hamburg
Bremen head office
Berlin
Hanover
Düsseldorf
Frankfurt
Dr Klaus Ridder (deputy chairman) until 30th September 2014
retired
Dirk Mampaey until 30th September 2014
Senior General Manager Corporate Services
KBC Bank NV, Brussels
Luc Gijsens until 30th September 2014
CEO Merchant Banking
Stuttgart
Munich
4 | 5
Customer proximity and continuity since 1863
2. Transparency
Our bank was originally founded in 1863 as a loan society; from 1945, it continued operations as a joint
Transparency of the business and comprehensibility of our daily work are important keys to our
stock corporation under the name Bankverein Bremen AG. Following acquisition of the share majority
successful cooperation, internally as well as externally with our customers. We always keep our
by a Belgian bank, Kredietbank NV, in1982, the name was changed in 1990 to Kredietbank-Bankverein
employees and our customers up-to-date on current developments with meetings and workshops
AG. Before then, branches had already been opened in Frankfurt (1986) and Düsseldorf (1988). These
which take place on a regular basis. By means of various management options BKB Bank offers a high
were joined in 1990 by a further branch in Berlin, followed in 1995 by one in Hamburg.
degree of flexibility and can quickly and appropriately respond to changes in the market environment.
As a result of the merger of Kredietbank with CERA-Bank and ABB-Versicherungen, an insurance
company, in 1998, the bank was renamed KBC Bank Deutschland AG in 1999. Additionally, a new branch
3. Change Management
was opened in Munich in the same year, followed by Stuttgart (2004) and Hanover (2008).
Never stand still, move step by step towards the future – 2014 was the year to detach ourselves
from an international banking group and to take the final step towards complete autonomy
2013 – the year of our 150th anniversary – saw the signing of the sale of the bank to our new owners.
with all associated systems. Until then, some of them were still used as group applications.
With the approval of the supervisory authorities, the actual transfer took place on 1 October 2014. Since
The implementation of an independent rating landscape, the transition of the reporting of our
that date, the bank has operated under the name Bremer Kreditbank AG (BKB Bank).
own funds to the credit risk standardized approach (CRSA) as well as the transition to completely
independent systems for payment transactions play a significant role in this context. With this, we
are ideally prepared for all demands that our ambitious growth targets entail.
Our history in brief
2014Renamed as Bremer Kreditbank AG (BKB Bank) under a new ownership structure.
1999 Name changed to KBC Bank Deutschland AG.
1982 Acquisition by Kredietbank N.V., Brussels.
1945 Merged with the Bremer Kreditbank AG to the name Bankverein Bremen AG.
1872 Name changed to Bremer Gewerbebank AG.
4. Security
We are specialised on medium-sized enterprises and we consider our bank to be a medium-sized
business as well. At the same time we certainly offer our customers the same securities as any other
major bank. They include our membership of the Bundesverband deutscher Banken e. V. (Federal
Association of German Banks), Berlin, and its deposit protection fund. Furthermore, we belong to the
Entschädigungseinrichtung deutscher Banken GmbH (German Banks Compensation Scheme) and
1863 Grounding of the loan society Bremen.
the respective local banking associations.
5. Appreciation
Our detailed history can be found at our website www.bkb-bank.com
The appreciation of our employees is a key element of our corporate philosophy. BKB Bank’s positive
image has always depended on the individual commitment of each of our employees. Against the
backdrop of the bank’s road to independence the multitude of extraordinary projects in 2014 could
only be managed by highly motivated and qualified teams working hand in hand. Therefore, we
would like to express our sincere gratitude to all employees.
Clear positioning and a unique appearance
As part of our change of name we have reviewed our self-image as well as the public perception. Following
an intensive process with many discussions, numerous changes of perspectives, and a professional
verification we have further developed our positioning, the brand values, and the brand essence and
combined it all into a modern mission statement.
Our new brand identity has been put into an artistic context. Well-managed businesses are as unique as a
piece of art. This also applies to good consultations in complex financial matters. This is why we provide
our customers with individual solutions which perfectly fit into their framework.
Art
The
of optimum
financial solutions
For the presentation of our new brand identity and in order to achieve a unique and
personal imagery we took pictures of our employees and used an art filter.
6 | 7
Balance sheet
8 | 9
Balance sheet
as per 31.12.2014 of Bremer Kreditbank AG, Bremen
Assets
Liabilities
EUR
1. Cash and reserves
a) Cash on hand
b) Balances with central banks
including at the German Central Bank
c) Credit at post office banks
EUR
EUR
322,676.38
76,766,325.40
EUR 76,766,325.40
EUR 0.00
0.00
2. Receivables from credit institutions
6,668,284.20
a) due daily
16,053,118.18
b) other receivables
3. Receivables from customers
thereunder: secured by mortgages
EUR 288,995,576.00
Public sector loans EUR 0.00
4. Bonds and other fixed interest securities
a) Money market securities
aa) from public sector issuers
thereunder: eligible as collateral at German Central Bank
EUR
0.00
ab) from other issuers
EUR 0.00
b) Bonds and other fixed-income securities
ba) by public sector issuers
EUR 228,283,648.09
bb) from other issuers
EUR 0.00
c) own fixed-income securities
Nominal value
EUR 0.00
Previous kEUR
(31.12.2013)
316
12,492
77,089,001.78
0
22,721,402.38
11,643
30,148
1,483,780,012.23
1,924,421
0.00
0.00
0
0.00
0
228,283,648.09
0.00
197,665
228,283,648.09
51,129.19
51
EUR 0.00
0.00
0
324
7. Intangible assets
a)Self-created industrial property rights and
similar rights and values
b) Acquired concessions, industrial property rights and
similar rights and values, as well as licences to such
rights and values
c) Goodwill
d) Advance payments
0.00
0
610,760.66
0.00
0.00
610,760.66
513
0
0
8. Tangible asstes
2,823,044.78
2,387
9. Other assets
6,928,281.21
7,370
10. Accruals and deferrals
2,541,349.66
261
1,825,152,344.50
2,187,591
Total assets
2. Liabilities to customers
a) Savings deposits
aa) with agreed notice period of
three months
ab) with agreed notice period of
more than three months
b) other liabilities
ba) due daily
bb) with agreed term or notice period
364,074,833.96
EUR Previous kEUR
(31.12.2013)
12,221
759,866
993
4,965.61
873,912.16
221,397,280.22
842,314,777.53
1,063,712,057.75
5.Provisions
a) Provisions for pensions and similar liabilities
b) Tax provisions
c) Other provisions
7. Profit participation capital
thereunder: due within two years EUR
868,946.55
9,902,919.44
0,00
10,299,259.28
6. Subordinated liabilties
323,714.52
5.Investments
thereunder: credit institutions
EUR 279,232.42
thereunder: financial service institutions
EUR
0.00
0.00
6,302,997.41
357,771,836.55
4. Accruals and deferrals
0
EUR 1. Liabilities to financial institutions
a) due daily
b) with agreed term or period of notice
EUR
3. Other liabilities
228,283,648.09
6. Shares in associated companies
thereunder: credit institutions
thereunder: financial service institutions
EUR
11
1,064,585,969.91
290,242
829,274
8,119,031.27
5,720
18,671.68
74
20,202,178.72
8,636
20
11,797
79,025,131.93
0
50,000,000.00
50,000
0.00
8.Equity
a) Subscribed capital
b) Capital reserve
c) Retained earnings
ca) Legal reserves
cb) Reserve for shares to a controlling company
or company with a majority holding
cc) Revenue reserves
cd) Other retained earnings
d) Net earnings
14,503
90,126
14,502,794.21
115,657,384.68
102,258.38
102
0.00
0.00
101,809,559.92
239,126,527.03
0
0
101,810
12,196
1,825,152,344.50
2,187,591
214,625,021.80
0
431,224
0
368,617,125.00
0
0
320,596
101,911,818.30
7,054,529.84
Total liabilities
1. Contingent liabilities
a) Contingent liabilities from discounted bills of exchange
b) Liabilities from guarantees and guarantee agreements
c) Liability for the collateralisation of third party debts
0.00
214,625,021.80
0.00
2. Other obligations
a) Repurchase obligations from non-genuine repurchase
agreements
b) Placing and underwriting obligations
c) Irrevocable credit commitments
0.00
0.00
368,617,125.00
Income statement | Notes 10 | 11
Notes
Income statement for Bremer Kreditbank AG, Bremen
Period from 01.01. to 31.12.2014
General
The financial statements for the financial year of 2014 complied with the relevant provisions of the HGB
EUR
1. Interest Income from a) credit and money market transactions
b) fixed interest securities and debt register claims
79,097,863.83
6,135,499.29
EUR
3. Current income from
a) shares and other non-fixed interest securities
b) investments
c) shares in associated companies
0.00
17,280.00
0.00
4. Income from profit pools, profit transfer agreements
6,170,451.26
6. Commission expenses
7. Other operating income
3,576,017.32
16,728,832.17
13. Result from ordinary business
8,375.88
11
been concluded between Bremer Kreditbank AG and Merkur as the 100% subsidiary and this is also
14,550
recognised for tax purposes. In the reporting year the profit of kEUR 8 that was generated was paid to
6,379,587.78
6,649
1,678,184.70
2,610
2,322
35,772,648.15
12,096
854,847.48
767
1,396,584.70
1,739
22,977,233.79
31,685
0.00
7,265
4,432,347.02
18,245
0
142,999.00
143
6,257,001.00
17. Tax from income and from earnings
3,604,383.89
21. Net earnings
17,280.00
0
17
0
6,400,000.00
16. Extraordinary result
20. Accumulated income from previous year
44,471
19,043,815.98
12. Income from profits from write-ups on investments,
shares in associated companies and also securities
held as fixed assets
19. Net profit
In accordance with § 244 of the HGB (German Commercial Code), all amounts are quoted in Euro.
The only subsidiary of Bremer Kreditbank AG, with a share capital of EUR 51,129.10 (100 kDM),
is Vermögensverwaltungsgesellschaft Merkur mbH, Bremen, hereinafter called Merkur.
Merkur shall be managed jointly with Bremer Kreditbank AG. A profit and loss transfer agreement has
Bremer Kreditbank AG.
Merkur‘s balance sheet totals contributed kEUR 1,051 on reporting day, of which kEUR 859 related to
14,659
11. Depreciation and value adjustments on receivables
and certain securities as well as additions to
provisions for credit losses
18. Other taxes not shown in position 10
Policies for Banks (RechKredV) as well as the German Stock Corporation Act (AktG).
57,350,232.78
15,467,798.66
10. Other operating expenses
15. Extraordinary expenses
(German Commercial Code). Furthermore, it also complied with the German Ordinance on Accounting
property ownership. This corresponds to 0.06% of the balance sheet total of Bremer Kreditbank AG.
9. Depreciation and value adjustments for tangible
and intangible asstes
14. Extraordinary income
100,418
7,762
12,550,039.04
5. Commission income
8. General adminstration costs
a) Personnel axpenditure
aa) Wages and salaries
ab) Social contributions and expenses relating to
pension schemes and benefits thereunder; for pension schemes EUR 1,554,999.12
b) other administration costs
EUR
85,233,363.12
27,883,130.34
2. Interest expenses
Previous kEUR
(31.12.2013)
34,915.22
6,257,001.00
143
5,877
3,639,299.11
30
7,050,048.91
12,195
4,480.93
1
7,054,529.84
12,196
In accordance with § 296 para. 2 of HGB (German Commercial Code) the preparation of consolidated
financial statements was not necessary due to the minor importance of the subsidiary.
Notes 12 | 13
Notes
Accounting and valuation methods
time of realisation. A tax rate of 31.63% was used for the company (which includes corporation tax of
The securities held as fixed assets will be valued according to the lowest value principle (§ 253 para. 3 HGB).
15.90% including a solidarity tax contribution and a trade tax rate of 15.73%).
The receivables were basically valued at nominal value; the difference between the amount paid out
The other provisions include in particular provisions for human resources and for the credit business.
and the nominal amount is shown as accruals and deferrals in the balance sheet and is periodically
recognised as income.
The currency conversion for assets and liabilities in foreign currency is carried out in accordance with
§ 340h HGB in conjunction with § 256a HGB (German Commercial Code). Receivables and liabilities in
We have formed suitable individual loan loss provisions and provisions for all risks that are foreseeable
a foreign currency were valued at the time at the foreign exchange reference rates published by the
in the credit business. Latent credit risks have been taken into consideration by a general loan loss
European Central Bank on reporting day. The bank uses the option of special coverage. All currency
provision (GLLP). The calculation of the GLLP is based on the FMF letter dated 10th January 1994,
positions (assets, liabilities and pending transactions) are overtaken in a controlled currency position
whereby the balance sheet notes were recorded in the assessment basis of the GLLP in accordance with
and by currency. The results are shown in the income statement under “other operational incomes” or
the statements of the IDW (Institut der Wirtschaftsprüfer – Institute for Auditors).
“other operational expenses”.
Tangible fixed assets as well as intangible assets are valued at cost, reduced by scheduled depreciation
The valuation of currency risks is carried out using the “Luxembourg model”. Therefore the currency
in accordance with the expected useful life.
forward transactions are split into the spot rate that is subjected to the currency risk and the swap rate
that is subjected to the interest rate risk. The spot rate was converted at the prevailing foreign exchange
The low-value assets are recorded as compound items and depreciated according to § 6 para. 2a EStG
average rate.
(German income tax law).
There was no risk of a change in the swap rate that needed to be balanced on the reporting day.
Liabilities are carried at the repayable amounts. The difference between the nominal value and the
issue value of liabilities is included in the accruals and deferrals and written off periodically.
In accordance with its hedge strategy, the banks forms valuation units according to § 254 HGB to hedge
currency risks from currency options and to hedge interest rate risks from caps, floors and collars.
Provisions for uncertain liabilities and potential future losses have been recorded in an adequate
This refers to micro hedges (critical term match). Due to the creation of valuation units for all options
amount. Therefore provisions with a remaining term of more than one year were discounted (§ 253
transactions, the received and paid premiums with their book value are detailed in the positions “other
sect. 2 HGB).
assets” and “other liabilities”. The bank therefore avoids negative valuation effects of a total of kEUR
3,424 which consist of the following:
Provisions for pension and similar obligations were valued according to the projected unit credit method.
For the calculation on 31st December 2014, the average market interest rate of 4.58%, published by the
Bundesbank (Federal bank), for a residual term of 15 years, annual wage increases of 1.5% and annual
pension increases of 2.0% as well as the 2005G guidelines compiled by Klaus Heubeck were assumed.
in kEUR
Other assets
Other liabilities
Caps, Floors, Collars
-422
16
FX options
-856
2,130
We have made use of the option to accumulate the balance of 2,144,985.00 EUR of the initial valuation
according to BilMoG (German Accounting Law Modernisation Act), Art. 67 para. 1, s. 1 EGHGB
The derivative products were valued, in so far as they did not relate to hedging transactions, according to
(Introductory Law to the German Commercial Code) over 15 years, so that on the reporting date of 31st
the principle of individual valuation of open positions. These derivatives form part of the management
December 2014, compared to 31st December 2009, EUR 714,995.00 will be additionally deferred. The
of the bank book as individual transactions. On reporting day it was not necessary to create a provision.
remaining balance of EUR 1,429,990.00 will be accumulated in the period of 1st January 2015 to 31st
December 2024.
Based on the existing asset surplus and using the option according to § 274 HGB (German Commercial
Code) no deferred tax liabilities were reported. The surplus of deferred tax assets mainly results from
deductible temporary differences in the balance sheet positions “tangible assets” and “provisions” for
which there are no taxable temporary differences. The valuation of deferred taxes is measured using
the rates of taxation that are specific to the country or company and which is expected to be valid at the
Notes 14 | 15
Notes
Selected positions from the balance sheet and income statement
Breakdown by maturity of assets
Balance sheets items (expressed in kEUR)
Breakdown by maturity of liabilities
2014
2013
Assets 3.b)
Other receivables from credit institutions
Balance sheets items (expressed in kEUR)
2014
2013
357,772
759,866
207,540
198,190
2,625
75,031
135,347
475,861
12,260
10,784
874
1,004
869
993
Liabilities 1.b)
16,053
30,147
of which a remaining term of
Liabilities to other credit institutions with
agreed term or notice period
• up to three months
28
3,543
• more than three months and up to 1 year
67
8,533
• more than 1 year and up to 5 years
5,079
6,663
• more than 5 years
10,879
11,408
Assets 4.
1,483,780
1,924,421
Liabilities 2.a)
Liabilities to customers from savings deposits
185,885
241,201
120,901
98,293
583,720
740,324
5
11
203,364
249,632
0
0
• with unspecified term
389,910
594,971
0
0
1,063,712
1,119,516
Liabilities 2.b)
Assets 5.b)
Bonds and other fixed income securities
228,284
197,665
Other liabilities to customers
120,819
132,222
• due daily
221,397
290,242
0
59,405
313,344
489,631
107,465
6,038
304,244
339,643
0
0
224,727
0
0
0
Notes 16 | 17
Notes
Statement on relationships with associated companies
By additional purchases the liquidity reserve was increased by the nominal amount of kEUR 240,000
The relationships with associated companies on balance sheet day are detailed in the following table.
to maintain the possibility of refinancing at the ECB, whereby kEUR 180,000 of the same stock matured.
The liquidity reserve portfolio was depreciated in the amount of kEUR 2,952.
Asset values in kEUR
Receivables from credit institutions
Other assets
Liabilities to credit institutions
Liabilities to customers
Liabilities from guarantees and
warranty agreements
Nominal value in kEUR
Derivatives with credit institutions
2014
2013
0
7,145
1,000
14,531
10
10
0
183,068
351
1,866
0
0
2014
2013
0
1,019,857
Bonds and other fixed interest securities
The banks stock of securities consists of fixed assets as well as liquidity reserve. All stocks are pledged
as collaterals to the ECB. The portfolio contains German, Belgian and Dutch issuers exclusively.
in kEUR
As per December 31st 2014 the stock consequently arises to a total of kEUR 228,284, which consists of
• the fixed assets with a book value of kEUR 6,234 (previous year: kEUR 6,265) and
•the liquidity reserve with a book value of kEUR 222,050 (after depreciation).
Shares in associated companies
The bank is associated with the following companies:
Shares in associated
companies
Nominal value
in kEUR
Percentage
of total
Book value
in kEUR
Vermögensverwaltungsgesellschaft
Merkur mbH, Bremen
51
100%
51
Total
51
in kEUR
51
2014
2013
51
51
Additions
0
0
Disposals
0
0
0
0
51
51
Historic acquisition costs
2014
2013
197,665
133,022
Accumulated depreciation
0
-94,531
Net book value
Purchases
251,105
166,998
Disposals
-215,912
-6,430
It relates to a 100% participation in Vermögensverwaltungsgesellschaft Merkur mbH, Bremen
Loss on redemtion
-1,281
0
(subscribed capital 51 kEUR (100 kDM). There is a control and profit and loss transfer agreement.
Depreciation
-2,952
-3,831
-341
2,437
228,284
197,665
Opening balance
Sales
Pro rata interest components
Balance sheet
On 01st January 2014 the historic acquisition costs of the fixed assets amounted to kEUR 72,300 of
which nominally kEUR 64,200 (historic acquisition costs: kEUR 65,912) matured in 2014. Due to the fact
that there were no further additional purchases, the stock aggregated to a total of kEUR 6,000 (historic
acquisition costs: kEUR 6,388) on 31st December 2014. Avoided depreciation did not arise by way of
calculation. The hidden reserves of fixed assets add up to kEUR 62.
In 2014 kEUR 8 were received by the bank.
Notes 18 | 19
Notes
Investments
Tangible assets
The bank has the following investments:
Nominal value
in kEUR
Percentage
of total
Book value
in kEUR
AKA Ausfuhrkreditgesellschaft mbH, Frankfurt am Main
85
0.42%
256
Bürgschaftsbank Bremen GmbH,
Bremen
33
1.01%
23
Liquiditäts-Konsortialbank GmbH,
Frankfurt am Main
40
0.02%
26
S.W.I.F.T. Society for Worldwide
Interbank Financial
Telecommunication SCRL, La
Hulpe, Belgien
19
Investments
0.01%
Total
19
324
Real estate and
buildings
Operating and
business equipment
Tangible assets
Total
in kEUR
2014
2013
2014
2013
2014
2013
Historic
acquisition costs
4,237
4,237
4,657
4,794
8,894
9,031
Additions
0
0
988
370
988
370
Disposals
0
0
579
506
579
506
2,977
2,900
3,503
3,608
6,480
6,508
Net book value
1,260
1,337
1,563
1,050
2,823
2,387
The amortization for the financial year was kEUR 528 (previous year: kEUR 533, of which kEUR 16 for
low-value assets (previous year: kEUR 16).
The real estate and buildings shown are used for bank purposes.
in kEUR
2014
2013
324
324
Additions
0
0
Disposals
0
0
0
0
324
324
Net book value
Foreign currency position
The foreign currency positions are broken down as follows:
in kEUR
2014
2013
Receivables from credit institutions
14,520
18,906
55,304
67,782
4
2
2,258
40,497
37,619
4,062
1
1
34,636
63,634
Other assets
Intangible assets
Liabilities to credit institutions
in kEUR
2014
2013
3,175
2,714
Additions
424
460
Disposals
4
0
2,984
2,661
611
513
Net book value
The amortization for the financial year was kEUR 326 (previous year: kEUR 233).
Liabilities to customers
Other liabilities
Contingent liabilities
Notes 20 | 21
Notes
Other assets and liabilities
Profit participation capital
The other assets totalling kEUR 6,928 consist mainly of receivables to the tax office amounting to kEUR
The profit participation capital of kEUR 50,000 was guaranteed by a contract concluded on 19th March
901, currency adjustments of kEUR 206 as well as receivables from interest rate swaps amounting to
2001 with KBC Bank NV. On 30th September 2014 the maturity was extended to 30th September 2019.
the value of kEUR 1,055. Furthermore, the receivables from currency options totalling kEUR 1,731 and
paid premiums from caps, floors and collars totalling kEUR 487 as well as paid margins of kEUR 600 are
All profit participation rights meet the requirements for the classification as Tier II-capital.
shown here. In addition, this position includes pre-paid expenses of kEUR 1.194.
The other liabilities totalling kEUR 8,119 mainly relate to liabilities from interest swaps amounting to
Share capital
kEUR 1,497 as well as premiums received from currency options totalling kEUR 1,997 and caps, floors
Share capital amounts to EUR 14,502,794.21 and is divided into 567,300 bearer shares. The shares are
and collars amounting to kEUR 596 as well as received margins of kEUR 3.400.
issued in bearer form and are contributed to:
• Texas Bildung Holding GmbH & Co. KG, Freiburg im Breisgau
Collateral transferred for liabilities
With regards to liabilities to credit institutions, assets amounting to kEUR 340,494 which were used as
collateral, were transferred.
• Champ Luxembourg Holding S.à r.l., Luxemburg/Luxemburg
• GIM Strategische Investition VI S.à r.l. Luxemburg/Luxemburg
After the change of the bank’s articles of association on 1st October 2014 there’s no further authorized
capital.
On the balance sheet date securities amounting to kEUR 226,613 (open market operations) and
receivables totalling kEUR 178,879 (at the German Federal Bank) were in the custody account.
Capital reserves
On the balance sheet date, the overall utilisation date at the German Federal Bank stood at kEUR
At the beginning of the financial year 2014 the stock of capital reserves totalled EUR 90,126,115.89.
322,942.
The possibility of rising the capital reserves by deposits was used in 2014 in compliance with §272 (2)
No. 4 HGB (German commercial code). These increases are presented as follows:
Accruals and deferrals for assets/liabilities
The deferred expenses and accrued income of kEUR 2.541 mainly consist of the disagio of subordinated
liabilities amounting to kEUR 2.257 as well as other smaller accruals.
• EUR 1,868,030.86 by the former shareholder, the KBC Bank N.V., Brussels
• EUR 23,293,432.63 by the new shareholder in relation to their stake of share capital
Further a discount of EUR 369,805.30 was rebooked from the convertible loan of Champ II Luxembourg
Holdings S.à r.l. Therefore the capital reserves amount to EUR 115,657,384.68 as per 31st December 2014.
The deferred income and accrued income of kEUR 19 is made up of accruals from promissory notes
amounting to kEUR 14 and income from forfaiting transactions totalling kEUR 5.
Retained earnings
The stock of other retained earnings remained unchanged with EUR 101,809,559.92.
In 2014 for the first time “subordinated liabilities” amounting to kEUR 79,025 were revealed out of a
private placement. These liabilities are composed of bearer debentures equivalent to kEUR 77,688 and
a convertible loan totalling kEUR 1,337.
The bearer debentures are denominated in Euro and were equipped with an interest rate of 9%. The
duration amounts to 10 years and is going to end in October 2024. The issue price was at 97%. Attributable
interest and disagio with a total of kEUR 1,227 were booked to the account of interest expenses.
The convertible loan amounts to kEUR 1,336 and has no fixed duration and no interest rate.
For both positions there is a contract including the mentioned conditions.
Notes 22 | 23
Notes
Contingent liabilities and other financial obligations
Other operational costs and income
The contingent liabilities (off-balance sheet) consist of no individual contributions that are of major
With regards to the other operational costs, these mainly include the expense of allocating the provision
importance with regards to the bank‘s overall activity. This relates solely to transactions as part of
for damage caused by contract breach totalling kEUR 568 and the interest paid for pension provisions in
customer credit transactions. The bank uses risk classification and early warning indicators to assess the
accordance with BilMoG amounting to kEUR 488.
probability of default. On this basis it can determine the risk of default of contingent liabilities.
The other operational income mainly consists of net gains from the currency valuation totalling +kEUR
With regards to long-term rental agreements with fixed terms of up to 2019, other financial obligations
1,112. Furthermore the position shows cost reimbursement of kEUR 104 and reimbursement for
amount to kEUR 1.410.
appraisal expenses amounting to kEUR 128.
There were no other financial obligations of major importance on reporting day.
Tax from income and profit
The position taxes on profit and loss that amount to kEUR 3,604 mainly consists of the anticipated tax
Contengencies not reported on the balance sheet
Regarding our share in the Liquiditäts-Konsortialbank GmbH there is no additional funding liability
anymore. The Liquiditäts-Konsortialbank is in liquidation – the execution of the liquidation is scheduled
for 2015.
Other obligations
With regards to irrevocable credit commitments, this refers to confirmed book credits, of which kEUR
20,000 has a remaining term of up to one year and kEUR 348,617 a remaining term of more than a year.
Individual positions that are of importance with regards to the bank‘s overall activity are not included.
Other administration costs
Major costs consist of IT charges of kEUR 2,243, IT-support of kEUR 2,226 (including kEUR 1,390 to
the former parent company), due diligence costs of kEUR 1,877, other consulting fees of kEUR 1,659,
compulsory contributions of kEUR 1,138, expense for buildings of kEUR 1,302, expenses for cost
reimbursement to the former parent company of kEUR 765, recruitment costs of kEUR 486, expenses
for human resources services of kEUR 457, advertisement of kEUR 455, travel expenses totalling kEUR
433, audit costs of kEUR 426 and legal expenses of kEUR 302.
Extraordinary expenses and income
Extraordinary expenses exclusively relate to the pro rata accumulation of the difference in the BilMoG
initial assessment of the pension provision with the context of art. 67 EGHGB (Introductory Act to the
German Commercial Code). Extraordinary income includes the purchase price from the sale of parts of
the bank to our former parent company.
expenditure for the financial year.
Notes 24 | 25
Notes
Forward transactions
Fair values of derivative financial instruments
As part of derivatives trading, the following outstanding types of transactions existed on the day of
reporting:
Nominal amount in EUR
up to 1 year
Remaining term
1-5 years
Remaining term
over 5 years
Remaining term
Total
Interest related swaps
Interest rate swaps
EUR
other currencies
Cap
Floor
-21,031
12,378
-8,653
caps (incl. caps from collars)
-59
59
0
interest rate swaps (incl. cross IRS)
94,384,901
662,182,481
floors (incl. floors from collars)
-21
21
0
143,324,243
409,987,408
75,126,974
628,438,625
Forward currency transactions
-14,174
14,789
615
14,485,929
19,257,927
33,743,856
-3,108
3,108
0
94,732,566
208,593,056
5,009,756
308,335,378
2,666,666
16,666,666
19,333,332
650,634,210
99,302,579
749,936,789
USD
355,213,630
7,885,218
363,098,848
PLN
133,705,777
69,599,096
203,304,873
RON
28,380,374
16,000,000
44,380,374
GBP
32,217,419
32,217,419
SEK
29,191,853
29,191,853
JPY
21,803,032
other currencies
Cross currency swaps
5,818,265
Currency options
Every working day the bank provides the market values for the derivatives using the external computer
programme PMS, which is provided by much-net AG in Bonn. The current cash value of the cash
flows is classed as the market value of a transaction. The calculation that is carried out is based on
current exchange rates, yield curves and volatility factors, provided that it relates to option contracts.
This market data is provided by Thomson Reuters.
At the end of the year the relatively high market values, in particular for the partial portfolios of interest
rate swaps and currency forward transactions, are the result of an isolated view of these portfolios
without considering the parts of the entire portfolio that appear in the balance sheet.
27,621,297
On the one hand, the bank operates the derivative business with customers. Therefore the transactions
50,122,125
50,122,125
undertaken by the customers are immediately covered by the banks, until 30th September 2014 in
51,844,430
51,844,430
276,238,056
19,808,937
296,046,993
19,808,937
285,591,067
USD
265,782,130
GBP
4,761,904
4,761,904
other currencies
5,694,022
5,694,022
Cross-IRS
Total
424,473,337
Foreign exchange options
Positive
fair value
143,324,243
Currency-related swaps
Forward exchange transactions
Negative
fair value
kEUR
17,822,255
18,331,666
36,153,921
particular within KBC Group. These transactions themselves, and also in the group, represent a closed
position, from which only the present value of the margin leads to marginal market values.
On the other hand, derivatives are used to manage the balance sheet structure. Market risk of financial
fixed interest transactions and/or currency exchange related transactions is primarily eliminated
or reduced on an individual transaction level by using interest rate swaps. Furthermore, hedges are
also used, e.g. foreign currency transactions with fixed interest rates of under 1 year are swapped into
corresponding Euro transactions using currency forward transactions. This takes place in the light of
the bank not wanting to enter into considerable interest rate positions in foreign currencies and by
The price risks resulting from forward transactions are monitored and limited in the context of the
using the swap the management can be carried out in Euro. Hedging transactions do not qualify as
relevant control model
valuation units in the context of § 254 HGB (German commercial code).
If the financial positions were also to be evaluated using a fair value approach, negative market values
of the derivatives would be compensated by positive fair values of the balance-sheet transactions.
A provision for anticipated losses as part of the loss-free valuation of the bank book did not need
to be formed as the bank as a whole, taking into consideration the expected refinancing, risk and
administrative costs, showed a positive present value for the entire interest rate book.
The bank uses the present value approach for proof of the loss-free valuation.
Notes 26 | 27
Notes
Other information
Mandates
Mandates of Board of Directors were not observed.
Employees
Number of active employees as an annual average:
Existing investments in the Bremer Kreditbank Aktiengesellschaft
Male
Female
Total
119
67
186
In accordance with §20 para. 1 AktG (German Stock Corporation Act) it was disclosed by the
shareholders, that the following ownership investments of the direct and indirect parties are above
thethreshold of 25%.
Employee statistics as of 31st December 2014
(excluding board)
Age in years
Male
Number
Female
%
Number
%
Number
Total %
up to 25
1
0.8
2
3.1
3
1.6
up to 45
54
45.4
31
47.7
85
46.2
up to 65
64
53.8
32
49.2
96
52.2
Gesamt
119
100.0
65
100.0
184
100.0
Type of investment
Investor
Direct
Texas Bildung Holding GmbH & Co.KG, Freiburg im Breisgau
Indirect
Teacher Retirement System Of Texas, Austin, TX/USA
Direct
GIM Strategische Investition VI S.à r.l., Luxemburg/Luxemburg
Indirect
Grovepoint Capital LLP, London/UK
Indirect
Grovepoint Investment Management GP Limited, St Peter Port/Guernsey
Direct
Champ Luxembourg Holdings S.à r.l., Luxemburg/Luxemburg
Indirect
BRH Holdings GP, Ltd., Georg Town/Cayman Islands
Indirect
AGM Management, LLC, Wilmington, DE/USA
Indirect
Apollo Global Management, Wilmington, DE/USA
Indirect
APO (FC), LLC, The Valley, Anguilla/BWI
Indirect
Apollo Principal Holdings VII, GP, Ltd, Georg Town/Cayman Islands
Indirect
Apollo Principal Holdings VII, L.P., Georg Town/Cayman Islands
Indirect
Champ GP, LLC, Wilmington, DE/USA
Indirect
Champ L.P., Ugland House/Cayman Islands
Notes 28 | 29
Notes
Executive and Supervisory Boards
Executive Board
Axel Bartsch (chairman)
Jens Rammenzweig since 1st February 2015
Guy Snoeks until 31st January 2015
Supervisory board
Dr Ernst Thomas Emde (chairman) since 1st October 2014
Lawyer, Frankfurt am Main, Germany
Remuneration
In 2014 the total remuneration of the Executive Board was kEUR 2,017 and kEUR 125 for the Supervisory
Board.
The total remuneration for former members of the Executive Board and their surviving dependants was
kEUR 184.
Pension obligations totalling kEUR 1,494 were set aside for these individuals.
On the balance sheet date credits were used as follows:
Executive Board members
Dr Dirk Hoffmann (deputy chairman) since 1st October 2014
Lawyer, Rum, Austria
Gernot Wilhelm Friedrich Löhr since 1st October 2014
Investment Professional, London, United Kingdom
Dr Manfred Puffer since 8th October 2014
Senior Investment Advisor, Mehrbusch, Germany
Brent George Geater since 1st October 2014
Sascha Säuberlich since 8th October 2014
Manfred Jarczak
Konrad Markus Rempe
Peter Steding since 11th December 2014
Bremen, 12. Februar 2015
Dr Wolfgang Schrörs (chairman) until 30th September 2014
Managing partner Dr Schrörs
Vermögensverwaltungsgesellschaft mbH & Co. KG, Bremen
BREMER KREDITBANK AKTIENGESELLSCHAFT
Dirk Mampaey until 30th September 2014
Senior General Manager Corporate Services
Luc Gijsens until 30th September 2014
CEO Merchant Banking
7
The credit incurred 6.5% interest.
Auditor‘s fee
kEUR 216 net (prev. yr. kEUR 236) was calculated for the audit of the financial statements, for other
consultancy services kEUR 114 net (in prev. yr. kEUR 129), and for other services kEUR 8 net (in prev. yr.
kEUR 8).
Proposal for appropriation of profit
The Executive Board proposes to use the retained profits for 2014 totalling EUR 7,054,529.84 to add EUR
7,050,000.00 to the other retained earnings. It proposes to carry over EUR 4,529.84 as profit to the new
financial year.
THE EXECUTIVE BOARD
Dr Klaus Ridder (deputy chairman) until 30th September 2014
retired
kEUR
Bartsch
Rammenzweig
Annex to the financial statements | Management Report 30 | 31
The audit opinion of our external auditor does not refer to the content of this annex.
Annex to the financial statements of Bremer Kreditbank AG
According to article 89 of the EU Directive 2013/36/EU (Capital Requirements Directive, CRD IV), the
requirements for the country-specific reporting (the so-called country-by-country reporting) have been
transposed into German law in §26a KWG.
The above mentioned disclosure requirements refer to name, nature of actvity and geographical
location, turnover, number of employees, profit/loss, taxes, as well as public subsidies of all foreign
subsidiaries which are incorporated in the consolidated financial statements as part of the full
consolidation.1
Although the Bremer Kreditbank AG has no foreign subsidiaries, it is, according to the interpretion by
the German credit business, not exempt from disclosing this information.2 However, national branches
do not have to be disclosed separately.3
Thereof, the determination of the turnover is based on the operating result (without value adjustments
and administrative expenditures including interest surplus, commission surplus, trading result and
other operating result).4
In order to determine the full-time equivalent of the employees reference is made to § 267 par. 5 HGB (German
commercial code).5 According to this, the average of the numbers of full-time equivalent employees at each
of the 4 quarter-endings of the financial year is to be used. This number incorporates 2 board members.
Losses are reported as negative numbers, profits as positive numbers.
Bremer Kreditbank AG has not received any public subsidies, neither in 2014 nor before.
Overview:
Germany
Name
Nature of activity
Financial institution
Geographical location
Bremen/Germany
Turnover
64,037,076.44 €
Number of employees
178.76
Profit/loss before taxes
10,689,348.02 €
Taxes on profit*
3,639,299.11€
Public subsidies
–
* including other non-income taxes of 34,915.22 €
According to § 26a KWG respectively article 90 CRD IV the return on assets is defined as quotient of
net profit and total balance sheet. The net profit as of 31/12/2014 was set as net profit in the financial
statements by the Bremer Kreditbank AG.
6
Return on assets =
1
2
3
4
5
6
Net profit
Total balance sheet
=
1
Fundamentals, business model, goals, strategy 1.1 Preamble
1.2Shareholders
1.3 Strategy/Business Model
1.3.1 Target Groups
1.3.2 Products and Services
32
32
32
33
33
34
2 Economic report
2.1 Macroeconomic and industry-specific
general conditions
2.1.1 Macroeconomic situation
2.1.2 Ifo Business Climate in Germany
2.1.3 Financial Markets
2.1.4 General Banking Market
2.1.5 SME Business of German Banks
36
39
39
39
2.2 Business performance
2.3 Results of operations
2.3.1 Commercial law perspective
2.3.2 Management reporting by division
Taxes have been calculated based on the German Corporate Tax Act and the German Trade Income Tax Act.
Country
Management Report
1,825,152,344.50 €
2.4 Financial position
2.5 Net assets
42
43
3
Subsequent events
44
4
Forecast
4.1 Balance-sheet forecast
4.2 P&L forecast
4.3 Capital forecast
44
44
44
45
5 Risk report
5.1 Principles of the risk strategy
5.2 Risikomanagement
Minutes “Deutsche Kreditwirtschaft: Aufsichtsdialog-Fachgremium Säule 3”, Punkt 9
Minutes “Arbeitskreis Basel II-Fachgremium Säule 3”, Punkt 38
= 0.39 %
41
7,050,048.91 €
(according to HGB – German Commercial Code)
36
36
36
37
38
38
5.2.1 Organisation of risk management
5.2.2Communication
5.2.3 Risk categories
5.3 Summary
46
46
46
47
48
49
59
Management Report 32 | 33
1 Fundamentals, business model, goals, strategy
1.1
Preamble
1.3
Strategy/Business Model
The fiscal year 2014 was in some respects characterised by the change in shareholder structure on
In 2014 the bank has continued with the same stable and successful strategy employed by the bank
1 October 2014. Out of KBK Bank Deutschland AG came Bremer Kreditbank AG, BKB Bank for short. With
for over a decade.
extraordinary efforts made by all colleagues and vigorously supported by the shareholders, BKB Bank
has developed into a completely autonomous credit institution with no involvement in a banking group.
1.3.1
Target Groups
The management report is based on “German Accounting Standard No. 20” of the (group) management
We at KBC Bank Deutschland AG consider ourselves to be primarily specialists for the comprehensive
report.
support of small to medium sized corporate customers (“Mittelstand”) in Germany. We offer this
service at our Bremen office and also in our branches in Berlin, Hamburg, Hanover, Düsseldorf,
Frankfurt, Munich and Stuttgart. Our business approach is therefore “relationship oriented”.
1.2
Shareholders
Following the disposal through the former sole shareholder KBC Bank NV, Belgium, three shareholders
We strive for balanced and long-term customer relationships with a clear commitment to commercial
banking. As a result we choose customers who can help us strive for a considerable market share in
the target group or area and who will pay appropriately for the products and services offered.
have had a direct holding of BKB Bank of more than 25% since 1 October 2014:
With regards to our corporate customer division, our target customers have a turnover > €30m
• Texas Bildung Holding GmbH & Co. KG, Freiburg in Breisgau
annually and as they operate on an international scale and have professional management, they
• Champ Luxembourg Holdings S.à r.l., Luxembourg/Luxembourg
give us the opportunity to fulfil our earnings expectations. Furthermore, we offer special product
• GIM Strategische Investition VI S.à r.l., Luxembourg/Luxembourg.
segments such as acquisition financing and real estate business.
We have listed the underlying indirect participants in the notes.
Our Network-Desk activities, which were primarily services for international KBC Group customers
situated in the KBC home markets, were run out of the Düsseldorf branch. However, since September
None of the shareholders have a majority stake.
2014 they have not been continued as the staff who belonged to the Network-Desk as well as the
customers were transferred over to KBC Bank NV.
As another target group, we understand wealthy private customers with liquid assets who are able
or expected to invest over €200,000, as well as institutional and other interested parties/buyers of
asset management products of the KBC Group.
1 Fundamentals, business model, goals, strategy
1.3.2
Products and Services
The BKB Bank satisfies all the requirements that an independent, quick and safe implementation of the
incoming and outgoing domestic and foreign payment system guarantees. A high quality and flexible
1.3.2.1
Corporate Customers
service is guaranteed through a worldwide network of correspondence banks, bank accounts in various
With regards to corporate banking, all forms of the traditional credit business form the basis for the
currencies and its own participation in all essential payment procedures, including S.W.I.F.T., TARGET2
business relationship.
and SEPA. For our clients we have a variety of e-banking solutions for paperless ordering and electronic
statement of account requests, Multicash, BKB online banking or S.W.I.F.T. for Corporates, depending
The division of acquisition financing has been operated from our Frankfurt branch since the start of
on customer need.
2002. Following the successful market entry regarding initial participation in syndicated acquisition
loans, we have established ourselves in the German LBO market within a short period of time. Today we
are involved as arranger of acquisitions in the midrange segment.
1.3.2.2
Private customers/Asset Management
In private banking, the focus on the acquisition of asset management mandates remains unchanged.
In the real estate business division our emphasis is on real estate financing for professional customers
Our offer of supervised traditional asset management deposits comprises a share of up to 80% in different
in the core areas of project development and property investments.
strategies. The minimum size is €200,000. This offer is supplemented through the funds’ portfolio
management with a minimum investment of €100,000.
In the central international business division we have experienced specialists at our disposal for our
customers in the documentary business and export financing groups.
In documentary business, the product range on offer consists of:
• Import and export letter of credits,
• Documentary collection,
• Handling of international guarantees
as well as in export financing
• Forfeiting of receivables
• Buyer credit
• Bank-to-bank loans or
• Pre-export financing
The medium and long-term export financing is regularly covered by different European Export Credit Agencies
We offer an asset management service, exclusively with the American shares called “Best Picks”, in
cooperation with the American brokerage house, Raymond James. This starts with a volume of
US$250,000 and is exclusively offered in Germany.
Alongside the asset management mandate, there is another focus on the traditional consulting business.
For security deposits that are individually managed, we advise our customers in almost all asset classes.
The asset management team has specialised in selling exclusive fund products for more than 10 years and
has progressed to become an established force in the DACH region (Germany, Austria, Switzerland). From
Germany and Austria, we offer our clients tailored investment strategies for every market environment to
meet individual needs. Continuity and transparency in the service and products we provide are the basis
of our success. We have a great expertise in country specific, regional and global investment solutions,
which includes all major equity and bond markets.
(ECA) against default risks. In addition to Euler Hermes Deutschland AG, our team of experts work with OeKB
(Austria), SERV (Switzerland) or FINNVERA (Finland). As a shareholder of AKA Ausfuhrkreditgesellschaft mbH,
KBC Asset Management NV (KBC AM) based in Brussels acts as strategic partner and is an approved bond
Frankfurt (AKA), we can furthermore use and offer the entire product range of AKA.
expert. With assets of €89 billion, KBC AM belongs to the leading providers of investment solutions in the
Belgium market. The services, which KBC AM feature Europe-wide in particular, include specialisation in
Its multiple participation in syndicated transactions means the bank offers an excellent network of
local currencies, emerging market bonds and offsetting inflationary risks. The first-rate expertise of the
banking partners in the syndicated lending business. Our small and medium-sized German customers
bank in the management of assets reflects in regular awards through independent agencies like S&P and
are able to take advantage of this network, the associated placement power, as well as our long-standing
Morningstar.
market expertise in the structuring of syndicated loans and bonded loans.
An experienced trading team operates the Treasury and Corporate Sales Business out of our Frankfurt
branch. All interested small- and mid-caps are offered an additional benefit from research publications
and products oriented towards the needs of the customer to all questions on interest rate, currency and
liquidity management. In addition to the 10-hour trading window from 7.45 to 17.45, participation (as
market maker) in the multi-bank platform 360 Treasury is also part of the service we provide.
2 Economic report
2.1
Macroeconomic and industry-specific general conditions
The business climate for the manufacturing industry had further improved. The assessment of the
positive business performance was only slightly reduced. The optimistic expectations of the industrial
2.1.1
Macroeconomic situation
companies turned positive at the end of the year.
At the start of 2014, the German economy was in excellent shape, economic growth was perhaps
even higher than previously thought. The German economy boomed. The fall in unemployment, the
In the wholesale market, the Business Climate Index rose for the third successive time at the end of
competitiveness of the German economy and the balanced state budget promised a good year.
the year. This can be attributed in particular to the obviously more favourable assessment, while the
current business outlook of the wholesalers was evaluated less positively. On the other hand, the
The total economic output in Germany then declined sharply in the following months. The economic
business climate has worsened in the retail sector.
trend fell below expectations. On the one hand there was the burden of the German economy, which
the Euro zone only gradually recovered from, and the growth on third markets remained moderate.
In the construction industry, the business climate worsened only slightly, however it still remained
On the other hand, geopolitical tensions increasingly emerged as a stress factor.
at a very high level. Building firms decreased their positive assessments slightly, both for actuals and
expectations.
From August 2014, leading economic experts warned against a long phase of stagnation, deflation
and higher unemployment. Economists therefore called for further measures from the ECB in order to
provide economic support of the monetary union. The German economy was hit by declining exports
2.1.3
Financial Markets
and inadequate investment. This was also, among other things, caused by the crisis in the Ukraine and
In 2014, the development of the financial markets in Germany and Europe was also characterised by
the accompanying uncertainty.
expansionary monetary policy measures from the European Central Bank. In two steps the central bank
dropped the main refinancing rate from 0.25% at the start of the year to just 0.05%. For the first time
As the year continued, the German economy started to stutter. The ZEW economic outlook for Germany
the commercial banks have to pay a fee for their deposits with the ECB – which exceeds the minimum
fell in October by 10.5 points. It was the tenth successive drop for the index. ZEW financial market
reserve. The excess liquidity of the banks has tended to drop over the course of the year.
1
experts justified this with continued uncertainty due to the conflict with Russia as well as on recent
disappointing figures on orders, production and foreign trade.
In expectations of a longer lasting phase of expansionary monetary policy, the long-term interest rates
started to nosedive. The yield on a 10-year government bond, which at the start of the year was still over
Towards the end of the year, the German economy gradually improved. The DIW2 economic indicator
2% , slid below 0.6%.
climbed up almost three points to 99.4 points in December, however it still remained under the 100
point threshold, which indicated an average growth in the German economy. The conditions for the
In 2014, the stock markets experienced a rollercoaster ride. Initially, a favourable economic outlook
domestic market looked brighter.
ensured price gains. However, the recovery came to a standstill – affected by geopolitical uncertainty,
among other factors. The geopolitical stimulus in the second half of the year ensured an increase in
Domestic investment activity still held back however, due to the major economic risks. However
market prices.
support came from foreign trade. Exports performed robustly, also due to the weakening of the Euro.
On the foreign exchange market, the Euro came under pressure. At the start of the year, it was quoted
against the US dollar at just under €1.40 per dollar. In comparison to the end of the year when it was
2.1.2
Ifo Business Climate in Germany
After the ifo Business Climate Index fell several times in a row between June and September 2014, there
followed an upward change in trend. Business sentiment improved three times in succession. By the
end of the year, the corporate assessment had risen even more than business expectations.
Completely unimpressed by the previous government and the threatening political change in Greece,
companies were showing renewed confidence.
1 Zentrum für europäische Wirtschaftsforschung (Centre for European Economic Research)
2 Deutsches Institut für Wirtschaftsforschung (German Institute for Economic Research)
valued at €1.25 per dollar.
2 Economic report
2.1.4
General Banking Market
However in 2014 the market has ultimately been characterised by a large number of banks still offering
“Banking in Upheaval” was the theme of a conference at the trade journal Handelsblatt on 3 and 4
medium-sized sufficient credit lines. The companies have recognised that, in view of the current levels
September 2014. The major issues within the sector were discussed there.
of interests rates, equity is more expensive than borrowing. In the future the classic credit financing is
also one of the fundamental future sources of financing for those medium-sized businesses who are
As in the previous year, 2014 was a difficult year for banks for various reasons. In the last three years, not
thinking long-term.
even 6% of the banks earned their equity capital/costs. The costs are on average 30% too high. Contrary
to popular opinion, it is not the result of recent increased capital requirements. The weakness of the
There was therefore enough money in the market in 2014 and there was no credit crunch. However the
banks‘ yield is a long-term development and the result of the decline in net interest and commission
competition was so intense, even for our clients, that the margins came under immense pressure.
income measured relative to equity. The average cost-income ratio is now at roughly 70% of the same
level as it was in 1970.
Focusing on the business model is the major driver in solving these structural problems. It offers up
2.2
Business performance
the potential to cut costs significantly. Many areas can only continue profitably with sufficient size
Overall, the bank can look back on a successful financial year in 2014. The equity base strengthened
and through economies of scale, something which will lead to a much increased diversification of the
significantly and the liquidity position remained stable. Thus the bank has achieved the foundation for
business model. In the future, the market will split up into global universal banks, regional institutions
future growth.
and specialists that will position themselves as having a competitive advantage such as customer
access and possible customised savings using their production processes. There is further potential
The earnings after tax are €7.1m – despite considerable special factors in connection with the
in the restoration of the core banking system and application environments, built up over many years,
independence of the bank. It fell only marginally short of the earnings target for 2014 of €8.2m.
and in the considerable streamlining of the branch network.
The banking market is therefore in a period of considerable change. All institutions are going their
various ways in order to survive long-term.
2.3
2.3.1
2.1.5
Results of operations
Commercial law perspective (according to HGB – German Commercial Code)
SME Business of German Banks
In 2014, the bank was able to generate a net profit of €7,050,000, approximately €5.1m below the
According to a survey by Creditreform from April 2014, the equity ratio among small and medium-
previous year, however above the annual profit from 2011 and 2012.
sized enterprises has further improved. Approximately one third of the firms surveyed can produce
a regulatory capital backing of more than 30% of the balance sheet total. German firms have a solid
The important positions in the income statement are detailed below.
financial base that has not been seen for years. The liability has also improved in light of improved
payment practices by customers. Internal financing is therefore becoming easier for many companies.
In comparison to the previous year, the interest income reduced by €22.9m and the interest expenses
by €16.6m – as a result, the net interest income dropped by €6.3m. This is largely due to the decline in
Many medium-sized businesses also wanted to finance themselves via bonds. However, despite simpler
business and is in line with the condensed balance sheet. As a result of the restructuring in the securities
access possibilities, this is hardly an alternative to loan financing. Due to the current high administration
portfolio, the interest income from fixed-income securities has reduced – overall the level of interest
costs, this market is only suitable for large firms that can aim for appropriate issue volumes. In addition,
rates has also dropped further in 2014. Moreover, the interest expenses along with €3.0m interest from
a lack of transparency within the marketplace in the past has led to numerous cases of bankruptcy, so
participating rights also include €1.2m for the subordinated bond for the first time in 2014.
much so that this market is no longer a reliable source of funding. That medium-sized businesses even
set up their own bank for financing, like the laser specialist and machine tool manufacturer Trumpf, will
The commission income and expenses was lower in 2014; this can be attributed above all to vastly
probably remain more an exception.
reduced received and paid guarantee commission. The net commission income has overall reduced
by €1.5m.
It is understandable that companies have moved away from banks. They experienced many institutions
as partners with erratic mood swings. At first they made generous loans available, then withdrew them
again for various reasons.
2 Economic report
Other operating income has reduced by €0.9m in comparison to the previous year, above all caused
by lower price gains from the foreign exchange business.
2.3.2
Management reporting by division
The total gross income was €64.9m in 2014, namely €7.2m below that of the previous year, however
€4.1m over the planned value. This reduction is largely due to the planned reduction of the balance sheet.
General administration costs in 2014 were up €6.7m compared to the previous year – primarily
driven by higher other administrative expenses. This includes €1.9m due diligence costs for further
Gross income Corporates (EUR mln.)
growth opportunities, €1.4m for the placement of subordinated bonds, €0.6m for the separation from
KBC Group (primarily compensation payment for Transitional Services that were not utilised) as well
as €0.5m for the complete independence of our rating landscape.
41.5
45.1
35.7
Actual 12/2014
At €22,977,000, booked risk provision affecting the P&L is once again significantly down on the
previous year’s figure, showing here a clear positive trend. The depreciation included therein and
gains from securities in the liquidity reserve amount to €4,233,000, so €18,744,000 relates to the
1.5
traditional credit business. Despite the improvement in comparison to the previous year this value
SME
remains above our expectations, however, it includes last adjustments as a result of the economic
1.0
Budget 12/2014
12.5
10.2
7.4
5.0
3.3
Network Desk
7.5
6.4
Actual 12/2013
Real Estate
AQF
crisis. Due to the declining loan volume €1,625m of the global value adjustments in 2014 could be
dissolved.
For the first time in 2014, the more balanced distribution of the liquidity costs impacted above all the
corporate customer business: approximately €6.2m liquidity costs were redirected between corporate
For the disposal of the business segment Network Desk, closely affiliated to the KBC Group, to KBC
customers and the Treasury through the introduction of the liquidity transfer price system (LTPS).3
Bank NV, the bank has received extraordinary income equivalent to the purchase price of €6.4m.
In the final analysis, gross revenues of all corporate customers were €54.8m, approx. €0.9m above the
forecast value and about €13.5m below the previous year’s figure.
Gross income other profitcenters (EUR mln.)
6.6
3.3
3.0
3.2
Actual 12/2014
3.7
Budget 12/2014
Actual 12/2013
0.3
Private Banking/
Asset Management
Treasury
0.1
0.2
0.2
Other Income
The income in the private customer business/asset management reached €3.3m and was therefore
slightly above the planned and previous year’s level.
The treasury result of €6.6m was significantly higher than in the previous year due to the offsetting of
liquidity costs. It was, however, significantly above the planned value – this is largely due to the fact
that, particularly in the first half of 2014, the actual refinancing costs turned out to be less than had
been accounted for in the LTPS.
3 The bar chart “Actual 12/2013” shows what the influences on the liquidity costs from the previous year were, provided that
the liquidity costs had already been calculated in 2013.
2 Economic report
2.5
Net assets
In 2014, the administrative costs from the management reporting perspective were significantly above
Balance sheet totals reduced in the reporting year by approximately €362m to now €1,825m. The drop
target and previous year levels. This is for the most part due to the one-time impact, which is described
is largely due to the balance sheet totals target to closing, which was agreed between old and new
in greater detail in chapter 2.3.1 Commercial law perspective (according to HGB – German Commercial
shareholders.
Code), which amounted to a total of approx. €5m.
Cash and reserves amount to €77m and are €64m above the previous year‘s value. The reason for this
The cost/income ratio, which reflects the relationship of costs to earnings, is 56% and is therefore
is a higher credit balance at the central bank for the purpose of liquidity reserve.
higher than in the previous year (42%). This is less surprising, but arises simply as a consequence from
low income with slightly increased expenditures.
Receivables form customers have reduced in 2014 by €441m to €1,484m. Our expectation, to extend
the business again immediately after closing, was not implemented due to a decline in demand for
credit in the last quarter of 2014.
2.4
Financial position
Receivables from credit institutions have almost halved in comparison to the previous year and
The bank’s capital position has improved in the financial year 2014.
amount now to €22.7m. Therefore the credit business with banks continues to play a subordinate role.
Our bank continues to provide a subscribed capital of €14,503,000, which is subdivided into 567,300
Bonds and other fixed interest securities increased in the financial year by €31m to €228m – it
bearer shares. The shares are issued in bearer form.
concerns exclusively German, Dutch and Belgian government bonds, all of which are ECB eligible and
deposited in collateral accounts. They are designed to be able to participate in the cheapest refinancing
The capital reserves amounted to €115,657,000 and increased in 2014 by €23,663,000 from capital
programme of the ECB and represent, alongside the assets at the ECB, the liquidity reserve of the bank.
increases of the new shareholders as well as €1,868,000 from a capital increase of KBC Bank NV, Belgium.
Liabilities to financial institutions have significantly reduced through the targeted reduction of the
The stock of revenue reserves remains at €101,912,000.
balance sheet total; they amount to €364m, about half that of the previous year’s value. This is largely
due to the liabilities owed to KBC Group as well as the central bank.
The bank now shows subordinated liabilities for the first time through the issue of an unsecured
10-year subordinate bond totalling €76.5m with a nominal yield of 9%, as well as the issue of an
Liabilities to customers have only slightly reduced in comparison to the previous year; however, the
unsecured non-interest-bearing convertible bond with no fixed maturity totalling €1.7m. The balance
maturity structure has massively changed: At the end of 2014, the bank already has more than €240m
sheet disclosure of 31 December 2014 shows €79,025,000. This is because on the one hand the pro rata
worth of liabilities primarily from institutional depositors with a remaining term of over 18 months.
interest rates for the subordinate bond of €1,188,000 have been included and, on the other hand, one
part of the convertible bond (€370,000) is attributable to the capital reserve.
Contingent liabilities have decreased by €217m. This development is in line with the declining balance
sheet business.
The participation rights capital of €50,000,000 was granted through a contract that was agreed on 19
March 2001 with the KBC Bank NV, Belgium. On 30 September 2014, the term of the participation rights
The increase in irrevocable credit commitments by €48m results predominantly from the reduction
was extended until 30 September 2019; the interest rate remains unchanged at 6%.
in the utilisation of the balance sheet within irrevocable loan commitments, so that the unused part is
now shown with the irrevocable loan commitments.
In order to guarantee the banking operations as well as its ongoing development, the bank continually
invests in operating and business equipment and non-tangible assets. In the financial year 2014,
no capital expenditure of particular significance was affected.
3 Subsequent events
After the reporting date, there were no procedures that have had a material impact on the assets,
With the introduction of LTPS in 2014, the Treasury will be paid the liquidity costs that were caused by the
finance or results of operations and are not taken into account in the financial statements.
profit centres. Meanwhile as the bank is organising the refinancing predominantly with a longer maturity,
a large portion of the notional liquidity costs may accrue. Nevertheless, for 2015 we are planning a residual
return from the transformation of interest rate and liquidity maturities of €1.3m.
After the considerable exceptional expenses in 2013 and 2014 in spinning off the bank, we anticipate a
4 Forecast
further administration cost of €29.3m for 2015.
The bank expects a risk provision, booked through P&L, of €12m for 2015.
The forecast for the year 2015 is based on the assumption of a continuation of the BKB Bank within the
proved, long-standing strategy (going concern). The business planning for it was coordinated as usual
We expect net profit for 2015 to be €6.0m and remain approximately €1.7m below 2014 results. However,
with the Supervisory Board.
in 2015, alongside the interest on participation rights capital of €3.0m, a total of €7.1m interest for the
subordinated bond is also payable. This capital base forms the foundation for further growth opportunities.
4.1
Balance-sheet forecast
The bank anticipates for the end of 2015 with a total balance sheet of €2,012m. If one considers that the
4.3
Capital forecast
security portfolio reduces to €100m, this represents a clear business expansion, above all with customer
Within the framework of the annual capital planning process, the bank has looked at the risk bearing
loans (planned value €1,821m). The refinancing for growth is possible with additional liabilities to banks
capacity for the next three financial years – as a result the bank is and remains sustainable. This is above
(planned value €479m) and customers (planned value €1,139m).
all due to its solid capital resources.
In terms of the equity ratio, the bank expects a (core) Tier 1 capital ratio of >12% for 2015 as well as a total
4.2
P&L forecast
Based on the business expansion, the bank expects a gross income for the financial year 2015 of €60.2m.
The largest income share of €55.5m comes from the corporate customer business. In comparison to
previous years, this represents a decline; if one considers, however, the cessation of the Network Desk
activities, which the KBC Group took over completely from 1 October 2014 as well as the partial sale of
the portfolios of the acquisition finance in August 2014, the bank is ultimately planning income growth.
The largest increase is planned for our SME business; here we anticipate in 2015 with income after
deduction of liquidity costs of €39.0m. Income from acquisition finance should amount to €8.4m, income
from real estate activities to €8.1m.
Income from corporate sales, which is included in the corporate client business, is expected to be
somewhat reduced to €2.2m in 2015.
In the private banking business/asset management we anticipate for 2015 income of €3.3m and
therefore remain at 2014 levels.
equity ratio of markedly > 15%.
5 Risk report
5.1
Principles of the risk strategy
Every autumn the Executive Board and senior managers from various divisions of the bank continue to
Our corporate strategy, which consists of a strong focus on corporate banking business, cannot aim to
develop the business strategy as well as the risk strategy that is based on it. Based on the assessment
rule out risk. On the contrary, the deliberate and controlled management of risk is becoming more
of the current situation and the risk recently identified in the risk inventory, the focus is to assess the
and more important for the company to succeed. This requires that we recognise the risks at an early
bank‘s current risk situation in light of external factors and market developments and to take action if
stage and that we are able to quantify them in order to develop the correct risk strategy:
necessary in order to prevent substantial loss.
• Risk avoidance abstain
• Risk reduction introduce counter-measures
• Risk limitation Protection via insurance
• Risk acceptancetake the risk
5.2.1
Organisation of risk management
The risk management and the definition of the risk strategy are independent of the internal jurisdiction
in the Executive Board‘s responsibility. These tasks are partly delegated within the bank to credit risk
Taking this into consideration, there are two important guidelines for managing risks in our bank to
management and risk controlling. Furthermore, the internal audit serves as an independent supervisory
consider before the individual risk categories are concreted and detailed.
authority.
1. With regards every trade, the opportunities and threats must be proportionate and
The bank has had a risk management system in place for years, which ensures the early detection and
the cost of the risk must be correct.
assessment of risks and applies the necessary control measures; this involves all market and specialist
2.We wish to use risk as an additional management tool and use available instruments for it.
areas. It is regularly reviewed whether the legal requirements, in particular the Minimum Requirements
for Risk Management (MaRisk) are fulfilled.
5.2
Risk management
The internal audit unit is included in the risk management and controlling processes as an independent
The long-term success of the company depends on the efficiency of its risk management. Competitive
supervisory point, so that, if necessary, the necessary measures or actions can be implemented at an
advantages can be realised by managing risk in a controlled and deliberate manner. One important
early stage. Its main task is the supervision of the adequacy and effectiveness of risk management
requirement for this is the company‘s ability to understand the company‘s own risk as an additional
measures. Furthermore, based on its position in the company, internal audit serves to provide impartial
performance indicator and to put it into practice.
information and advice to the management team and the Supervisory Board and serves as the main
contact for the external auditor.
BKB Bank has outlined the strategic and operational aspects of the bank‘s risk management and made
it an integral part of the business bahaviour. At the core of the development and implementation of our
The bank has appointed various committees to identify risks, to make assessments and decisions
risk management system is the aim of creating scope for action that facilitates the long-term security
regarding risks. The main committees with regards to risk management are:
of existing and creation of new potentials for success which in turn secures the bank‘s continued
existence. This is achieved by recognising risks that threaten the company‘s existence at an early stage.
The Kredit Committee Bremen (KCB), which is made up of the full Executive Board, decides, depending
on the size structure of our credit portfolio, over the predominant portion of the credits. In an
The risk management system implemented by the bank is an integral part of the overall planning,
advisory capacity, the manager of the credit advice department/Approval 2 (back office), amongst
management and reporting processes in all relevant units and divisions and is aimed at the systematic
others, is involved in the decision-making.
identification, assessment, management and documentation of risks. Whilst taking certain risk
categories into consideration, the risks of the divisions and operational units are identified and
assessed in accordance with their probability of occurrence and level of loss. The assessment of level
of loss is carried out whilst considering the effects of risk on operational units. In addition to the
strategic orientation of the risk management, the bank has set up a monitoring system that ensures and
guarantees the bank‘s continued existence and which will detect any threatening developments and
confront them. The risk management system allows the Executive Board to detect significant risks at
an early stage and to implement countermeasures. In so doing, the risk management system subjects
the bank to continuous improvement. In 2014 many projects were launched to adjust the existing
controlling tools to the new supervisory and strategic guidelines. The bank also uses external experts
for support.
5 Risk report
A member of the Executive Board, as well as managers from various divisions of the bank are members
5.2.3
Risk categories
of the Operational Risk Committee (ORC). The ORC initiates risk inventories whose results are
We, BKB Bank, have classified the following risk categories as significant, i.e. with medium or significant
promptly consolidated in a risk inventory. It is responsible for the risk process, i.e. the identification
degree of risk:
and quantification of operational risks taken by the bank, and makes suggestions for individual
• Counterparty default risk
control measures and oversees their implementation. The risk inventory is the basis for the effective
• Liquidity risk
management of risk by the Executive Board and is a control function for the Supervisory Board.
• Market risk
• Operational risk
The asset and liability committee (ALCO) deals with the interest, currency and liquidity risk at least
• Other risk
once a month. In addition to the Executive Board, the Treasury, the head of strategic methods and
processes of bank management, the head of risk controlling, as well as (risk) controlling staff, are
When organising risk management, risk concentrations of main risks should also be considered. These
members of this committee.
are investigated and documented as part of the annual risk strategy when considering all areas of risk.
The risk and audit committee (RAC) supports the Supervisory Board of the bank, monitoring the
integrity, efficiency and effectiveness of the control mechanisms that are implemented within the bank
5.2.3.1
Counterparty default risk
as well as risk controlling. Furthermore, the RAC supervises the bank’s processes and procedures to
We understand counterparty default risk as the risk of our customer or business partner defaulting –
ensure they comply with the law und regulatory requirements. The RAC comprises of three members
in particular due to deterioration in their credit rating. We differentiate between
of the Supervisory Board, which are elected for an indefinite amount of time. Permanent invitees are
the Chief Executive Officer and the Head of the Risk Controlling department as well as the Head of
Compliance and Internal Audit.
•the credit risk or counterparty risk, where our contract partner is unable to meet its obligations and
we incur a loss, also in the form of unrealised profits for pending transactions and
• the country risk that arises when contract partners who are based abroad, have transfer problems 5.2.2
Communication
due to political or economic crises and therefore result in additional default risks for us.
Thanks to transparency, reliability and the highest level of openness that allows dialogue from different
perspectives, trust can be built amongst those involved in the risk assessment process. For this reason
The management and control of counterparty default risk has a high profile within the bank.
the bank initiates an ongoing and interactive process for presenting the risk management system
In accordance with the company‘s policy focussing on small to medium sized corporate customers, the
and its results with all those who are involved in the process in the bank (management meetings, risk
credit management is initially targeted at considering individual risks. The risk assessment is based
assessments, operational risk committee) as well as with those bodies with legal status (Board with credit
on a fundamental credit rating analysis which forms together with the assessments for management
committee and risk and audit committee) and those bodies who deal with the bank regulations.
quality, market position, branch situation as well as forecasts a detailed risk profile. The credit decision is
always based on a credit term that includes both on and off balance sheet transactions as well financial
The controlling department produces detailed quarterly reports regarding all risk areas of the bank for
instruments (with equivalent credit amount). Customers with economic dependencies are summarised
the risk report. The Executive Board forwards this report to all members of the Supervisory Board. Once
in risk units.
a year the main changes to the business and risk strategy and the current risk situation are presented in
the board meeting and the important aspects are discussed.
With regards to credit and counterparty risk, several organisationally independent areas of
responsibility take over the management task relating to counterparty default risk:
The risk and audit committee has unrestricted access to all information at the bank. It is entitled to
consult the Head of Risk Controlling, the Head of Compliance, the Head of Internal Audit as well as
• The market segment comprises the acquisition and support for clients and is responsible for the external partners, also without the presence of the Executive Board.
preparation of vote 1
Due to the significance of the risk management system for all bank employees, the Executive Board has
set out the process in writing. These guidelines, as well as the business and risk strategy, are available
to all bank employees via the Intranet (WIKI).
• Already incorporated into vote 1, the financial analysis and rating process is a more important
element for objectively identifying risks through the operative credit function units “credit analysis and rating”
• Subsequent to vote 1, before the credit decision by the operative credit function units
“credit advice/vote 2” takes place, a completely independent second vote
5 Risk report
• In addition, problem loans are monitored in a separate group “Problem Loan Management”
• In accordance with the size structure and the risk profiles of the credit portfolios, the vast majority of loans will be decided by the Credit Committee in Bremen (Management Board)
• The job of processing and monitoring collateral and credit is carried out in the separate Credit
The loan volume of the defaulted borrower in corporate lending on 31 December 2014 amounted to
€204m (previous year €259m). The part of the loan volume not covered by valuable securities, or where
no repayments are expected for it, is covered through appropriate risk provision in the form of specific
loan loss provision or provisions in the credit business.
and Contract Processing department
Diversification of risks within the corporate loan portfolio becomes clear in the distribution of credit
• Risk controlling additionally monitors the risk management on a portfolio level
volume (without non-performing loans) according to Expected Loss Rating classes (EL-rating classes).
These not only take into account the default probability (PD) but also all eligible collaterals; guarantees,
mortgages and cash collateral. The EL rating therefore better reflects the economic credit risk. The EL
The risk assessment of the majority of borrowers is supported by different rating models, which
rating classes are based on the PD classes: 45%5 of the maximum PD rating class is the ceiling for the
determines the probability of default based on quantitative and qualitative corporate data. These
respective EL rating class. PD und EL rating classes of the default classes correspond to each other.
results are the foundation of the risk assessment and the pricing.
26% of the loan volume, which for the most part is made up of revocable loan commitments as well as
In addition, the bank uses a RaRoC (Risk adjusted Return on Capital) as an important control parameter
loans, which are secured through in-house cash collateral or prime bank guarantees, are in the rating
of the pre-calculation, in order to compare businesses with different degrees of risk and conditions that
class 0 with default probability under 0.03%. A further 25% of the loan volume has the EL rating classes
are commensurate with the risk. The RaRoC shows return on economic capital allowing for the risk and
1 and 2 (Low Risk), the main focus with 36% is the segment with medium potential for losses (Medium
liquidity costs, as well as administrative costs.
Risk). The proportion of loans with higher expected losses (High Risk) represents just 13% and, in
accordance with our risk strategy, is not allowed to exceed 20%.
In the context of risk reporting, loan volume is of primary importance, which, alongside utilisation
of the balance sheet, also includes revocable and irrevocable credit commitments, guarantees and
We carry out a sector breakdown by means of industrial classification of the Bundesbank (WZ2008).
warranties that have been taken over, letter of credit obligations as well as credit equivalent values of
Different characteristics of “industries” are summarised. The four largest sectors – measured by
derivatives.
management-related loan volume – make up a total of 44%: Machinery/Heavy Equipment (13%),
Wholesale/Trader (12%), Construction/Building Material (11%) and Chemicals (9%). Our declared aim
is to keep the share of individual sectors under 20% in order to maintain a diversified credit portfolio.
Loan volume Corporates (EUR mln.)
In order to avoid risk concentration, different class sizes were formed, depending on the existing equity
2,613
capital, and limited.
2,248
Actual 12/2014
A good 6% of our loans to SME have a maturity of more than 5 years. The limit for these is 15%.
Akquisitionsfin.
Actual 12/2013
316
231
SME
AQF
0
192
Network Desk
344
364
Real Estate
Loan volume of corporate loans, which target our credit strategy – without taking into account the
defaulted credit in this segment – has reduced from €3,485m to €2,823m. The attributable expected loss
has dropped from €16.1m in the previous year to €12.4m. The average default probability4 of corporate
loans is 1.78%. The decline is on the one hand due to the sale of the Network Desk activities and the
partial sale of the portfolios of acquisition finance; On the other hand, the loan volume was reduced
owing as well to the smaller total balance sheet target.
4 Refer to 1 year
5 45% meet the LGD standard for unsecured positions
5 Risk report
The loan volume in the areas of private banking, banks, KBC Group, Treasury and other areas totals
5.2.3.2
Liquidity risk
€613m (previous year €420m), the associated expected loss was €49,000 (previous year €72,000). Since
In view of the separation of the BKB Bank from the international KBC Group, the liquidity supply in
1 October 2014 the credit business has not been listed separately with the KBC Group but has been
complete autonomy certainly represented one of the biggest challenges. Through the bank’s intensive
shown predominantly in the “Banks” segment. The “Treasury” segment includes current government
preparations we can meanwhile look back over three months (after closing), in which the liquidity supply
bonds from Germany, Holland and Belgium. On the whole these segments are significantly less risk
was guaranteed at all times without any problems. We have extended one part of the customer deposits
relevant as corporate banking.
to a maturity of over 18 months; furthermore in the meantime, other banks with liquidity facilities are
available to us.
Loan volume Others (EUR mln.)
With regards to liquidity risk, the bank differentiates between
384
•the insolvency risk as the risk of being unable to meet the current or future payment obligations
in full or on time,
224
197
136
6
purchase refinancing resources at increased market interest rates and
Actual 12/2013
81
5
• the refinancing risk (incl. foreign currency refinancing risk) as the risk of only being able to
Actual 12/2014
• the market liquidity risk as the risk of only being able to liquidate assets at a discount on the
0
Private Banking
Banks
KBC-Group
market due to exceptional circumstances.
Treasury
The Executive Board determines the strategic guidelines and limits within which the Treasury (that is
based in Frankfurt) takes over operational management. The Control department supervises the position
As of 31st December 2014 the portfolio of specific loan loss provisions amounted to €123m and was
and compliance with the limits and is responsible for the continuous development of the systems and
therefore with €5,858,000 higher than in the previous year.
the reporting. In the monthly ALCO meeting the bank‘s current liquidity situation as well as market
2014
developments are discussed and necessary actions outlined. Our concept of liquidity risk management
Specific Loan Loss Provisions
Provisions for risks
General Loan Loss Provisions
01.01.2014
117,386
6,425
7,624
Utilization
-15,531
-998
0
Reversal
-3,377
-4,970
0
Additions
24,767
0
-1,625
123,244
456
5,999
31.12.2014
consists of early warning indicators, an emergency plan as well as a stress test concept with several
defined stress tests.
Due to our strategy we are focused on financing small to medium sized companies, acquisition finance
and real estate financing. We are as such focused on lending business. On the other hand a broad-based
private banking business is not our aim. The refinancing must therefore take place on the money and
capital market.
In accordance with our business strategy there are only a few receivables to borrowers that are not
A significant share of the refinancing funds come from customer deposits. As of the balance sheet date,
assigned to Europe. Main country risks are strategically limited. As measured by management-related
almost 72% of our customer loans were refinanced through corresponding customer deposits. The ECB as
credit volumes and whilst considering which country the business partner or collateral issuer is based
well as third-party banks also play an important role. Moreover, at closing we have received a confirmed
in, the majority consisting of 93% (previous year 91%) is distributed among three countries – Germany,
commitment from KBC Bank NV, Belgium, in which we can up until 30 September 2016 make use of €750m
Belgium and the Netherlands. Only 4% is distributed in countries with a B or C rating (see Fitch).
as well as €550m for a further year (until 30 September 2017). The line of the KBC Bank NV, Belgium was
made use of only once up until closing.
Our stress test considerations are based on different scenarios in which increased default probability
or reduced recovery rates are used to simulate deteriorating economic conditions. With different
To assess the insolvency risk we take into consideration all cash flow that affects liquidity as well as
spreads that affect the entire portfolio or part of it, the effects on expected and unexpected loss are
possible payment obligations from open credit lines and aggregate this in a funding matrix. We then
measured and assessed.
compare this to the liquidity lines that are still open (liquidity cover potential) and determine the liquidity
buffer. On this basis we assess the current and future liquidity situation using the given parameters.
All parameters are periodically validated. The relevant adjustments are made, if necessary.
5 Risk report
Cashflows vs. Liquidity Cover Potential 31.12.2014 (in EUR mln.)
0
The German Federal Financial Supervisory Authority has issued a liquidity policy and the banks‘
-200
adequate ability to pay is measured against this. The bank has adhered to this principle at all times in
past years. During this year the ratio for the first maturity band for the reporting dates was between 1.22
-400
and 2.99 (previous year 1.26 and 1.75).
-600
The monitoring period of the Liquidity Coverage Ratio (LCR) began at the start of 2014. The bank
reported the respective base data to the German Federal Bank (Bundesbank) on a monthly basis.
-800
A true limiting of this size is forecast for the third quarter of 2015 – the bank has however already clearly
-1,000
-1,200
01/15
exceeded the minimum requirement of 60%.
02/15
Cashflows (cumulative)
03/15
04/15
05/15
06/15
08/15
Liquidity Cover Potential
09/15
10/15
Limit (90%)
11/15
The bank defined various liquidity stress tests that show whether the liquidity potential provided is
12/15
sufficient given certain conditions. In doing so, we consider various long time frames, the bank‘s own
Early Warning (80%)
and market-wide scenarios as well as historic and hypothetical cause-effect-chains. We also consider
As expected, the cash flows of the liquidity maturity statement were in the 6-month bucket a few
the additional liquidity risk as controllable under these stress conditions.
weeks foreseeable above the early warning indicator (80%) shortly after closing, and in part over the
limits of the liquidity bottleneck (90%). Measures for emergency planning were however initiated in
advance: customer deposits were substantially extended in terms of maturity. Moreover, the capital
was increased through the issuance of a subordinated bond.
5.2.3.3
Market risk
By market risk we mean the risk of adverse changes in the market prices of tangible assets or financial
securities that could result in potential losses.
As per 31 December 2014, the maximum utilisation of the potential liquidity coverage in the observation
period of twelve months is 63% (on 30 December 2015). The remaining buffer to the potential liquidity
BKB Bank is classed as a non-trading business, i.e. we don’t operate proprietary trading targeting
coverage was on this day €386m. Until the early warning indicator is set off, about €176m remains.
short-term gains. As a consequence, our market price risks are tightly limited.
Numerous liquid and realisable assets are available, ensuring our permanent willingness to pay.
The risk of a change in the interest rates is classed as significant risk for the bank whilst currency
Furthermore, we have installed a range of quantitative and qualitative early warning indicators, which
risks have a lower priority. Options, equity price, real estate and commodity risks do not exist or are
are set off when a piece of ad hoc information from the treasury and the Executive Board arrives.
insignficant. The market risk that is relevant to the bank is managed by using derivative financial
instruments amongst other things.
The refinancing risk to be able to achieve additional liquidity at only raised interest rates is essentially
explained by the extension of the credit spread for banks or by the deterioration of the own credit rating.
The risk of a change in the interest rate is mainly in the bank‘s banking book which includes all
credits and deposits from commercial transactions, all taken and granted interbank transactions that
The extension of the credit spread for banks generally leads to a corresponding increase in reference
are used for the bank‘s liquidity management, the liquidity reserves‘ securities as well as the concluded
rates (e.g. Euribor) in inter-bank trade. As we have agreed the majority of customer business on this
derivatives for hedging purposes.
basis or by collecting through interest rate hedges, we could pass on this extension.
The open interest rate position can be compared to the appropriate position limits on a daily basis
A deterioration of our rating would lead to a relatively short-term increase in refinancing costs based on
through the processing of all asset-side and liability-side interest rate positions in the form of a fixed
the high proportion of investments that are sensitive to interest. An increase in the cost of refinancing
interest period.
funds by one basis point is the equivalent of an additional expenditure of approx. €88,000 per year.
A Value at Risk (VaR) analysis, as the most important control parameter, is carried out on the basis
The market liquidity risk at BKB Bank relates to the securities portfolio that exclusively consists of
of historical simulation (review period 500 working days, confidence level 99% and holding period 10
Euro government bonds from European countries. As before, the ECB accepts all securities as security
days). The limit is €1,500,000 and was always met in 2014. Daily back testing confirms the forecasting
for participating in the tendering process so that we can assume liquidity in terms of refinancing.
quality of the system. We also move our interest rate curves in parallel by 0.10% (= 10 basis points)
The sale of some bonds has also shown that a market exists further on and price reductions are only
due to the credit risk of the issuers.
5 Risk report
as part of our BPV6 approach and subsequently calculate the given difference as the present value.
Identified risks are saved and assessed in the bank‘s risk inventory. The Executive Board decides on
The BPV limit is €1,000,000.
what steps are to be taken in every individual case. In case of risk mitigation, there is a central follow-up
by the operational risk committee, which met a total of four times in 2014. The Board is briefed at least
The bank carries out regular stress tests that are based on hypothetical assumptions and developments
once a year on the results and decisions.
from historical crises.
The bank runs a loss database in which all losses from operational risks are aggregated. In 2014 there
Transactions that are currency rate linked are only concluded as part of the customer business and
were 10 cases of loss with a total net loss of €50,000.
are mainly directly hedged with other banks. The total of open currency transactions must not exceed
the €500,000 limit so that no significant currency risks can arise.
The bank has also implemented the necessary early warning indicators with regards to operational
risks which shall detect possible risks at an early stage. In human resources, for example, quarterly
In monthly meetings the ALCO analyses the interest, currency and liquidity risk and decides upon the
statistics on labour turnover, overtime and sickness are reported which alert exceptional trends using
necessary next steps.
a traffic light system.
The bank does not currently participate in equity proprietary trading or commodity trading.
As part of the stress test process we are dealing with the outcome of three scenarios: following an
epidemic 30% to 40% of our employees are absent, three large borrowers default due to manipulation
The daily monitoring of the proprietary position by the risk controlling department ensures all year
of the balance sheet and we simulate a temporary interruption in the process of payment transactions.
round that there are no significant risks even under a worst-case scenario.
Furthermore, we calculate a quantitative stress test based on historic loss cases. The risks that result
from this are controllable.
5.2.3.4
Operational risk
We define operational risk as the risk of losses that arise due to unsuitability or failure of internal
5.2.3.5
Other risks
processes and systems, people or as a result of external influences. We differentiate between
With regards to other risks, the bank attributes only a medium risk potential to the risk from capital
organisation, technical resources, employees and external factors when determining possible causes
management; the remaining risks play a less important role. The scarce resource “capital” must
of failure. We also consider external influences such as credit defaults that are due to the manipulation
be invested as best as possible. For this purpose the annual planning of the income statement is
of the balance sheet.
supplemented with a capital planning that indicates the trend of capital items and their consequences
on the risk-bearing capacity over the next 3 years. Therefore regulatory changes, such as the current
To contain the operational risks and in addition to separating functions, the bank has also introduced
selective approach of subordinated capital, are also particularly necessary, so that action can be taken
controls to detect weaknesses at an early stage. The particular importance of the IT systems is taken into
at an early stage, if necessary.
account in that the relevant back-up solutions are always available at short notice in the head office or
back-up location of the bank. The effectiveness of these back-up systems is regularly monitored using
various emergency plans and recovery scenarios.
5.2.3.6
Risk-bearing capacity
As before the aim is to quantify the bank’s risks on the one hand and – if necessary, when considering
The bank regularly examines whether its organisational structures comply with the minimum standard
the interactions (correlations) – to aggregate them in an overall risk profile. On the other hand, the
with regards to internal control and security measures. The results obtained during a continuous
coverage potential is also to be calculated that is to be available for absorbing risk in the event of risk.
investigation are measured against this standard and adjusted if necessary.
The risk-bearing capacity is then always given when the coverage potential given exceeds the overall
We are continuously developing our risk process which helps to constantly improve our risk awareness
risk position. On the fixed dates of the analysis we compare how high the degree of utilisation of the
in all divisions. In 2014 six risk self assessments were carried out in the areas “Loans”, “Accounting”,
risk coverage potential is.
“Trading”, “Private Banking”, “Payments” and “Procurement”. The frequency of individual inventories
is derived from a risk map that is continually updated and which assesses all processes/business
segments according to their risk and the existing controls. The risk map allows also for a three year plan.
6 BPV = Basis Point Value
5 Risk report
The risk-bearing capacity of BKB Bank is guaranteed and monitored by three views.
A stress test that assesses all risk types supports the analysis of the effects of a deep economic
These are
downturn on the risk-bearing capacity of the bank in the economic view. The specific delivery is in
the form of a historical stress test in which the deep economic effects, as a result of insolvency of the
1. the periodic,
investment bank, Lehman Brothers, have been studied by the bank on the key areas of risk.
2. the economic and finally
3.the regulatory
The stress not only affects the significant risks of the bank but also affects parts of the risk coverage
risk-bearing capacity.
potential. With regards to the credit risk, we assume a PD increase of 56% and a credit spread increase of
472bp for liquidity risk. With regards to the market price risk from securities, we use historic changes in the
The three-way split is in line with the separate accounting entities or interests of the target group
evaluation of the change in interest rates that are dependent on the term and rating on the actual initial
between which there must be no inevitable identity. The risk-bearing capacity must be guaranteed in
situation. When calculating the coverage potential under stress the hidden reserves/encumbrances from
each of the listed perspectives.
the interest book as well as from securities are calculated with stressed market data.
From a periodic perspective, the confidence level is 95%. Therefore the concept is applied to possible
The risk-bearing capacity was quoted in all views, simulations and stress tests on the 31st December
risks for the current and next financial year (in the event of cut-off date of analysis being 31st December).
2014 as well as during the year.
This view regards the potential negative deviation of the results from the planned value in the results
as a risk. To measure the risk coverage potential the bank uses a going concern approach, according to
which, and other such approaches, only such equity components are assessed that are not linked to
5.2.3.7
Concentration of risk
the compliance of the minimum solvency requirement for capital. On every reporting date, we review
We regard concentration risks as those which arise from an uneven distribution of counterparties in
which capital ratio (core Tier 1 ratio, Tier 1 ratio or total capital ratio) constitutes a bottleneck.
credit or other business relationships or from the creation of sectorial or geographical business focusses
and which are capable of generating such large losses that the institution’s solvency is threatened.
The bank uses a liquidity approach in the economic view. The aim of this approach is to still be able to
guarantee complete service to the creditors in the context of a fictitious sale of the bank, even if risks
For the moment, we see important concentrations only with regard to the income: based on the strategic
are incurred. The economical definition of risk always focuses on the present value risk for the asset
orientation of the bank, a large proportion of our income does apply to net interest and commission
value. Risks that are incurred correspond with a negative change in the asset value, i.e. calculating the
income that are mainly the result of lending transactions.
economic risk quantifies the maximum extent of the negative asset value change, given the confidence
level applied. A risk assessment period of 1 year and a confidence level of 99.5% is chosen when
As part of our business model we strive to counter the risks in all areas, e.g. by expanding the commission
calculating the present value risk.
business that is not credit dependant.
The supervisory assessment of adequate capital focuses on the ratio of capital to risk-weighted assets.
The Bank has adequate capital if all capital ratios are maintained. For the internal risk management
and thus the risk-bearing capacity, BKB Bank still uses the Internal Ratings Based Approach (IRB
5.3
Summary
foundation), even though the external notification of capital has been carried out since 31 December
The Executive Board believes that overall an effective control instrument has been established, which
2014 according to the credit risk standardised approach (CRSA).
provides the management team and also the Supervisory Board on a regular basis with an up-to-date and
detailed overview of the current and future risks to their business.
Capital ratios per 31.12.2014:
IRB-Foundation
CRSA
Core Tier 1 ratio
13.4%
13.6%
(min. 4.0%)
Tier 1 ratio
13.4%
13.7%
(min. 5.5%)
Total capital ratio
21.0%
20.9%
(min. 8.0%)
Audit opinion | Report of the Supervisory Board 60 | 61
Audit opinion1
Report of the Supervisory Board
“We have audited the annual financial statements, comprising the balance sheet, the income statement
Business development and strategy
and the notes to the financial statements, together with the bookkeeping system, and the management
In many ways, the financial year 2014 was marked by the disposal of KBC Bank N.V. to a consortium of
report of Bremer Kreditbank AG, Bremen, for the fiscal year from 1 January 2014 to 31 December 2014.
strategic investors (indirectly) as of 1st October comprising:
The maintenance of the books and records and the preparation of the annual financial statements and
management report in accordance with German commercial law are the responsibility of the Company’s
management. Our responsibility is to express an opinion on the annual financial statements, together
with the bookkeeping system, and the management report based on our audit.
• Teacher Retirement System of Texas, USA
• Investors of the Apollo Group and associated investors
• Grovepoint Capital, London and Grovepoint Investment Management GP Limited, St Peter Port, Guernsey
As a result of the disposal, Bremer Kreditbank AG, BKB in short, emerged from the KBC Bank Deutschland AG.
We conducted our audit of the annual financial statements in accordance with Sec. 317 HGB
[“Handelsgesetzbuch”: German Commercial Code] and German generally accepted standards for the
Irrespective of the disposal, the bank continued its decade-long successful and stable strategy in 2014 and
audit of financial statements promulgated by the Institut der Wirtschaftsprüfer [Institute of Public
continued to position itself as a specialist for providing comprehensive advisory services to medium-sized
Auditors in Germany] (IDW). Those standards require that we plan and perform the audit such that
customers in the German market. To support this customer group, the bank uses all forms of traditional
misstatements materially affecting the presentation of the net assets, financial position and results
lending business as well as documentary business services, export financing, payment transactions,
of operations in the annual financial statements in accordance with [German] principles of proper
treasury and corporate sales business. It also provides acquisition and real estate financing to professional
accounting and in the management report are detected with reasonable assurance. Knowledge of
customers. In the retail business, the focus remains on acquiring asset management mandates.
the business activities and the economic and legal environment of the Company and expectations
as to possible misstatements are taken into account in the determination of audit procedures.
The overall positive business environment in 2014 and buoyant demand for credit allowed the bank
The effectiveness of the accounting-related internal control system and the evidence supporting the
to end the year with a satisfactory net profit of EUR 7.1 million despite eroding margins and to lay the
disclosures in the books and records, the annual financial statements and the management report
foundation for future growth.
are examined primarily on a test basis within the framework of the audit. The audit includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the annual financial statements and management report. We believe that
Activities of the Supervisory Board
our audit provides a reasonable basis for our opinion.
The Supervisory Board convened eight times in 2014, not least of all due to the disposal of the bank.
Besides discussing the economic and financial development of the bank and its strategy and planning,
Our audit has not led to any reservations.
the disposal to the new shareholders was the main focus of the Supervisory Board’s activities.
In our opinion, based on the findings of our audit, the annual financial statements comply with the legal
The Management Board reported regularly on the business policy and other basic questions regarding
requirements and give a true and fair view of the net assets, financial position and results of operations
corporate management and planning, strategy, financial development and the bank’s profit situation,
of the Company in accordance with [German] principles of proper accounting. The management report
the bank’s risk management system and transactions and events which were of immense importance
is consistent with the annual financial statements and as a whole provides a suitable view of the
to the bank. Between the meetings the Supervisory Board was updated on key processes by the
Company’s position and suitably presents the opportunities and risks of future development.”
Management Board both in writing and verbally and the chairman of the Supervisory Board and the
Management Board conferred on a regular basis The Supervisory Board is of the opinion that it was able
Hamburg, 13 February 2015
to fulfil its responsibility of supervising and advising the Management Board in an appropriate manner.
Ernst & Young GmbH
In the first meeting on 5th March 2014, the audit reports of the auditors of the annual financial
Wirtschaftsprüfungsgesellschaft
statements for 2013 were discussed at length and the balance sheet for the financial year 2013 was
adopted. The Risk and Audit Committee, a sub-committee of the Supervisory Board also reviewed the
reports on the same day. The Supervisory Board was able to ascertain that the auditors of the annual
financial statements judged that the bank had given a suitable view of the company’s position which
led to an qualified auditors’ opinion.
BühringMeyer
WirtschaftsprüferWirtschaftsprüfer
Following the election of new members of the Supervisory Board at the annual general meeting held
[German Public Auditor]
on the same day, a constituent meeting of the Supervisory Board was held. The Supervisory Board
[German Public Auditor]
1 This is a translation of the audit opinion issued in German. The latter is the sole authoritative version.
Report of the Supervisory Board 62 | 63
Report of the Supervisory Board
appointed Dr Wolfgang Schrörs as chairman and Dr Klaus Ridder as deputy chairman. At the meeting,
Committees of the Supervisory Board
the shareholder reported on the status of the disposal process. The Supervisory Board was informed
The Supervisory Board received regular updates on the activities of the committees. The Credit
that the investors had since submitted all documents to the regulatory body for the approval process.
Committee conducted three plenary meetings and the Risk and Audit Committee conducted two
plenary meetings. Since the change in shareholder structure as of 1 October 2014, the Credit Committee
In the meetings on 21st May 2014 and 29th September 2014, the Supervisory Board was updated
has conducted weekly meetings in the form of telephone conferences.
on the bank’s business development, the current risk situation and the status of the disposal process.
It was able to ascertain that the bank’s business is progressing well and according to schedule despite
the protracted disposal procedure and that the fluctuation rate among employees is minimal. At the
Annual financial statements
meeting, the Supervisory Board in its current composition was informed that the disposal transaction
Representatives of the auditors of the annual financial statements participated in the Supervisory
will be closed on 30 September. The members of the Supervisory Board, Dr Wolfgang Schrörs,
Board’s balance sheet meeting on 3rd March 2015, where they explained a few points.
Dr Klaus Ridder, Luc Gijsens and Dirk Mampaey, subsequently resigned their positions with effect from
1st October 2014.
The accounting, annual financial statements and the management report of the company
for the period from 1st January to 31st December 2014 were audited by Ernst & Young AG
On 1 October 2014 an extraordinary shareholders’ meeting was held where – in addition to the renaming
Wirtschaftsprüfungsgesellschaft, Hamburg, and are issued with an unqualified audit opinion.
of the company – it was resolved that the Supervisory Board will comprise nine members in future, six of
The Supervisory Board acknowledged and approved the audit result. It reviewed the annual financial
which will be from among the group of shareholders and three employee representatives. Supervisory
statements of 31st December 2014, the management report and the proposal of the Management
Board members Dr Thomas Emde, Dr Dirk Hoffmann, Gernot Löhr, Brent Geater, Dr Manfred Puffer and
Board regarding the appropriation of profit without objection.
Sascha Säuberlich were elected by the shareholders’ meeting.
Today the Supervisory Board approved and adopted the annual financial statements prepared by the
Since the change in shareholder structure, four further meetings of the Supervisory Board have taken
Management Board. The Supervisory Board agrees with the proposal for the appropriation of profit.
place, two in a written procedure where the Supervisory Board fulfilled its monitoring responsibilities
according to the German Control and Transparency in Business Act (KonTraG).
The Supervisory Board thanks the Management Board and especially the employees and employee
representatives for their high level of personal commitment which has led to the bank’s success in
In the constituent meeting of the Supervisory Board after the extraordinary shareholders’ meeting on
recent years.
1st October 2014, the Supervisory Board elected Dr Thomas Emde as chairman of the Supervisory
Board and Dr Dirk Hoffmann as deputy chairman. During the meeting the catalogue of transactions
Bremen, 3rd March 2015
requiring approval was expanded and updated to ensure that the Supervisory Board is more closely
involved in key procedures of the company.
THE SUPERVISORY BOARD
In the telephone conferences on 20th October 2014 and 7th November 2014, the Supervisory Board
learned of various key projects of its shareholders.
Key agenda items of the meeting on 27th November 2014 were the bank’s risk report as of 30
September 2014, the business and risk strategy for 2014/2015 and the business development in 2014
and the bank’s budget for 2015.
Dr Thomas Emde
Chairman
Contacts 64 | 65
Your contacts
Head Office
BREMEN
Wachtstrasse 16
28195 Bremen
Germany
Service for the
Mittelstand
(SME)
Corporate banking – Düsseldorf branch
Königsallee 106 | D-40215 Düsseldorf
Telephone +49 (0) 421 - 36 84-0
Fax +49 (0) 421 - 36 84-473
Email [email protected]
Web www.bkb-bank.com
Corporate banking – Bremen branch
Wachtstrasse 16 | D-28195 Bremen
Helke Friedrich, Relationship manager
+49 (0) 421 - 36 84-340
Wilfried Monsees, Relationship manager
+49 (0) 421 - 36 84-430
Thomas Kempe, Head of North Rhine Westphalia
+49 (0) 2 11 - 130 75-32
Thomas Braun, Relationship manager
+49 (0) 2 11 - 130 75-39
Anke Müller, Relationship manager
+49 (0) 2 11 - 130 75-29
Thomas Wroblewski, Relationship manager
+49 (0) 2 11 - 130 75-42
Simone Eckhardt, Relationship manager
+49 (0) 2 11 - 130 75-34
Stefanie Schmidt, Relationship manager
+49 (0) 2 11 - 130 75-40
Corporate banking – Frankfurt branch
Voltastrasse 81 | D-60486 Frankfurt
Corporate banking – Hamburg branch
Ferdinandstrasse 12 | D-20095 Hamburg
Pieter W. Ruhaak, Head of Frankfurt and Stuttgart
+49 (0) 69 - 75 61 93-25
Jutta Nikolic, Relationship manager
+49 (0) 69 - 75 61 93-23
Marko Richling, Head of Northern Germany
+49 (0) 40 - 30 20 02-15
Roland Gerbig, Relationship manager
+49 (0) 69 - 75 61 93-29
Bernd Hintze, Relationship manager
+49 (0) 40 - 30 20 02-18
Juan F. Riutort Magg, Relationship manager
+49 (0) 69 - 75 61 93-49
Sven Hoffmann, Relationship manager
+49 (0) 40 - 30 20 02-22
Daniel Hülsemann, Relationship manager
+49 (0) 40 - 30 20 02-17
Marcel Ohrner, Relationship manager
+49 (0) 40 - 30 20 02-11
Corporate banking – Stuttgart branch
Epplestrasse 23 | D-70597 Stuttgart
Corporate banking – Hanover branch
Podbielskistrasse 166b | D-30177 Hannover
Jochen Bieder, Relationship manager
Rudolf von Podewils, Relationship manager
+49 (0) 7 11 - 63 37 04-11
Ebru Düzci, Relationship manager
+49 (0) 7 11 - 63 37 04-10
Corporate banking – Munich branch
Ottostrasse 13 | D-80333 München
+49 (0) 5 11 - 6 55 05-111
Corporate banking – Berlin branch
Lietzenburger Strasse 69 | D-10719 Berlin
Dominique Bastian, Head of Bavaria
+49 (0) 89 - 242 09 78-10
Alexander Koch, Relationship manager
+49 (0) 89 - 242 09 78-14
Gerd Sewerin, Head of Berlin
+49 (0) 30 - 203 07-20
Claudia Müller, Relationship manager
+49 (0) 89 - 242 09 78-11
Sarah Berger, Relationship manager
+49 (0) 30 - 203 07-11
Simon Weißer, Relationship manager
+49 (0) 89 - 242 09 78-17
Nico Steindamm, Relationship manager
+49 (0) 30 - 203 07-10
Syndication
Acquisition
Financing
Pieter W. Ruhaak
+49 (0) 69 - 75 61 93-25
Youssef Bouya
+49 (0) 69 - 75 61 93-19
Michael Brand
+49 (0) 69 - 75 61 93-26
Thorsten Dill
+49 (0) 69 - 75 61 93-12
Frank Kiesewetter
+49 (0) 69 - 75 61 93-13
Michael Lichius
+49 (0) 69 - 75 61 93-47
Norbert Loeken
+49 (0) 69 - 75 61 93-24
Contacts | Special functions | Legal notice 66 | 67
Your contacts
Real Estate
Financing
Special functions
Jürgen Mertens, Head of Real Estate Financing Frankfurt
+49 (0) 69 - 75 61 93-16
HONORARY CONSUL KINGDOM OF BELGIUM IN STATE OF BREMEN
Tibor Rajcsanyi
+49 (0) 2 11 - 130 75-23
Axel Bartsch
Klaus Fischer
+49 (0) 89 - 242 09 78-20
Consulate
Wachtstrasse 16
Private
Customers
Asset
Management
Axel Kammeyer, Head of Private Banking
+49 (0) 421 - 36 84-316
Jörg Baumhöfner, Private Banking
+49 (0) 421 - 36 84-313
Hermann J. Müller, Private Banking
+49 (0) 421 - 36 84-455
Jörg Schreiber, Private Banking
+49 (0) 421 - 36 84-344
Nunzia Thiriot, Country Head of D/A/CH
+49 (0) 69 - 75 61 93-73
Andrew Hinrichsen, Senior Sales Manager
+49 (0) 69 - 75 61 93-36
Kerstin Happe, Asset Management
+49 (0) 421 - 36 84-363
Kristina Worbs, Asset Management
+49 (0) 69 - 75 61 93-35
28195 Bremen
Fax +49 (0) 421 - 36 84-482
Germany
Legal notice
Responsible for the contents
BREMER KREDITBANK AG
Jenny Lutz
Concept/design/typesetting
Additional
Services
Telephone +49 (0) 421 - 36 84-330
Telephone +49 (0) 421 - 36 84-327
ELBFEUER GMBH
Mittelweg 161
Hamburg
Germany
Financial Institutions
Pieter W. Ruhaak
+49 (0) 69 - 75 61 93-25
Jutta Nikolic
+49 (0) 69 - 75 61 93-23
Youssef Bouya
+49 (0) 69 - 75 61 93-19
www.elbfeuer.de
Printing
GEBR. KLINGENBERG & ROMPEL IN HAMBURG GMBH
Treasury
Andreas Glaser, Head of Treasury
+49 (0) 69 - 75 61 93-70
Carl Baker
+49 (0) 69 - 75 61 93-71
Corporate Sales
Sascha Massoth, Head of Corporate Sales
+49 (0) 69 - 75 61 93-72
Andreas Dömel
+49 (0) 69 - 75 61 93-72
Dietmar Kordel
+49 (0) 69 - 75 61 93-72
International Business
Dirk Stamer, Head of International Business
+49 (0) 421 - 36 84-422
Images / Rights of Use
Payment Services
Rüdiger Heidmann, Head of Payment Services
+49 (0) 421 - 36 84-245
All images and text appearing in this brochure are the exclusive property of the Bremer Kreditbank AG.
Any use and/or processing of the images and the texts may only be used upon request and require the prior written consent.
The art of embedding
the future
into tradition.
one way
There is just
to prove what you can do:
by doing it.
Marie von Ebner-Eschenbach
Head Office Bremen
Wachtstrasse 16 | 28195 Bremen | Post-office box 10 39 60 | 28039 Bremen
T +49 (0) 421 - 36 84-0 | F +49 (0) 421 - 36 84-473 | BIC: BANV DE HB
German Central Bank, Bremen branch (BLZ 290 201 00)
USt-IdNr.: DE 114397381 | Steuernummer: 460/102/07442 | Finanzamtsnummer: 2460
Bremen | Berlin | Düsseldorf | Frankfurt | Hamburg | Hanover | Munich | Stuttgart
www.bkb-bank.com

BKB Annual Report 2014

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