Success comes from Excellence
Annual Report 2023
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Success comes from excellence
BKS Bank follows the excellence model of EFQM, the European Foundation for Quality Management. The model is based on a total quality management approach which is the foundation of our success. This approach makes it possible for us to achieve excellent results in all business areas. Excellence in management, innovation and processes clearly sets us apart from our peers.
Our aspiration to deliver excellence is more than achieving top performance indicators, it also gives due attention to stakeholder satisfaction, sustainability in business practices and creating value for society. We
believe that lasting success is the outcome of balancing corporate goals with the aim of meeting the needs of all stakeholders.
We constantly work to improve quality and advance innova- tion, and in this way continually improve processes and services. Our commitment to excellence means delivering high quality products and services, resulting in satisfied customers.
Our focus on quality shows that working to achieve success for the long term is the key to securing our future and yields benefits customers, employees and society.
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Living our values
Our ideal of serving as a "warm-hearted bank for a livable future" is based on our key values of warm-hearted- ness, strength in relationships and accountability. These values guide the actions of our management and employees, and creates a stable foundation that helps us gain the trust of our customers, employees and business partners.
People who experience BKS Bank know that it is a credit institution that lives its values: warm-heartedness, strong in relationships, accountability, future-oriented and excellence.
Customers are at the core of our activities, with a strong focus on individual needs and providing personal advisory services. Even in an increasingly digital world, BKS Bank has kept its focus on personal relationships and works to ensure that all customers - regardless of whether digital natives or traditional banking customers - are served well and reliably.
Our values and focus on customers make BKS Bank a reliable partner, outstanding for its close relations with customers and excellent understanding of their needs.
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Proven excellence
BKS Bank is one of just a few banks that voluntarily submits its business to an assessment under the EFQM Excellence Model. The last EFQM assessment awarded BKS Bank a 6-star rating.
The findings: "BKS Bank's business is very balanced and of high quality across all criteria of the EFQM Model. The topic of sustainability is firmly established at BKS Bank."
The European Foundation for Quality Management (EFQM) provides a globally recognised assessment model that helps organisations manage change and improve their performance.
Three topics are at the core of the assessment.
- Priority of customers and their needs ahead of other objectives.
- The necessity of a long-term perspective that focuses on stakeholders.
- The causal relationships between what an organi- sation does, how it does it and what it achieves by its actions.
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Table of Contents
Table of Contents
BKS Bank at a Glance 10
Preface by the Chairwoman of the Management Board 11
Corporate Governance at BKS Bank | 14 | |
Corporate Governance at BKS Bank | 16 | |
Management Board and Supervisory Board 20 | ||
Diversity Concept 34 | ||
Measures to Promote Women | 37 |
Compliance-Management-System39
Independent Assessment of the Functionality of Risk Management 40
Accounting and Disclosure | 42 | ||||
Report the Chairman of the Supervisory Board | 43 | ||||
Investor Relations | 49 | ||||
Corporate Strategy | 55 | ||||
About us | 57 | ||||
What We Stand for | 58 | ||||
What We are Proud of | 59 | ||||
Our Strategy | 61 | ||||
Group Management Report | 69 | ||||
Economic Environment | 71 | ||||
Development of the real estate market 73 | |||||
Management and Organizational Structure 74 | |||||
Shareholders 76 | |||||
Markets and Target Groups | 79 | ||||
Consolidated Companies and Equity Investments | 82 | ||||
Financial Position | 88 | ||||
Result of Operation | 93 | ||||
Segment Report | 99 | ||||
Consolidated Own Funds | 110 | ||||
Risk Management | 112 | ||||
Non-financial report 114 | |||||
Research and Development | 124 | ||||
Outlook 125 |
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Table of Contents
Consolidated Financial Statements pursuant to IFRS 128
Table of Contents - Notes 130
Statement of Comprehensive Income for the Financial Year 2023 132
Consolidated Balance Sheet for the Period ended 31 December 2023 134
Consolidated Statement of Changes in Equity 135
Consolidated Statement of Cash Flows 137
Notes to the Consolidated Finacial Statements of BKS Bank 138
Profit Distribution Proposal 219
The Company's Boards and Officers 220
Closing Remarks by the Management Board 221
Independent Auditors' Report | 219 | |
Supplementary information | 224 | |
Shareholder Structure of the 3 Banken Group 226 | ||
History of Our Company | 227 | |
Glossary | 228 | |
List of Abbreviations 233 | ||
Forward-looking Statements | 235 | |
Imprint | 235 |
Minimal deviations in tables and charts are due to rounding differences. The masculine form was chosen to make the text easier to read. All genders are addressed equally in the texts.
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BKS Bank at a Glance
Three-year performance comparison
Income Statement in €m | 2021* | 2022 | 2023 |
Net interest income | 138,9 | 156,6 | 248,6 |
Impairment charges | -32,4 | -25,9 | -38,4 |
Net fee and commission income | 67,1 | 68,2 | 64,9 |
General administrative expenses | -124,0 | -136,0 | -153,3 |
Profit for the year before tax | 96,2 | 78,6 | 206,3 |
Profit for the year after tax | 83,3 | 63,6 | 179,1 |
Balance sheet in €m | |||
Total assets | 10.602,5 | 10.533,0 | 10.673,1 |
Receivables from customers after impairment charges | 6.958,6 | 7.175,3 | 7.411,7 |
Primary deposits | 8.116,0 | 7.872,1 | 7.832,3 |
• thereof savings deposits | 1.351,2 | 1.258,9 | 922,5 |
• thereof securitised liabilities incl. subordinated debt capital | 973,5 | 1.048,3 | 1.087,8 |
Shareholders' equity | 1.480,0 | 1.543,8 | 1.768,8 |
Customer funds under management | 21.222,8 | 19.397,2 | 19.952,5 |
• thereof on custody accounts | 13.106,9 | 11.525,1 | 12.120,3 |
Own funds pursuant to CRR in €m | |||
Total risk exposure amount | 5.980,1 | 6.213,5 | 6.664,3 |
Own funds | 1.009,2 | 1.058,1 | 1.189,5 |
• thereof common equity tier 1 (CET1) capital | 734,9 | 778,3 | 907,5 |
• thereof total tier 1 capital (CET1+AT1) | 800,1 | 843,4 | 972,7 |
Common equity tier 1 ratio | 12,3 | 12,5 | 13,6 |
Tier 1 capital ratio (in %) | 13,4 | 13,6 | 14,6 |
Total capital ratio (in %) | 16,9 | 17,0 | 17,9 |
Performance ratios | |||
Return on equity after tax | 5,9 | 4,2 | 10,8 |
Return on assets after tax | 0,8 | 0,6 | 1,7 |
Cost/income ratio (expenses/income coefficient) | 50,2 | 54,7 | 38,7 |
Risk/earnings ratio (credit risk/net interest income) | 23,3 | 16,5 | 15,4 |
Non-performing loan ratio (NPL ratio) | 2,2 | 2,1 | 2,9 |
Leverage ratio | 8,4 | 7,9 | 9,1 |
Liquidity coverage ratio (LCR) | 208,9 | 190,4 | 223,2 |
Net stable funding ratio (NSFR) | 122,9 | 118,7 | 123,3 |
Resources | |||
Average number of staff | 986 | 986 | 994 |
Number of branches | 64 | 64 | 64 |
BKS Bank's Shares | |||
Number of no-par ordinary shares (ISIN AT0000624705) | 42.942.900 | 42.942.900 | 45.805.760 |
High in € | 16,7 | 15,9 | 16,6 |
Low in € | 11,3 | 13,2 | 12,5 |
Close in € | 15,3 | 14,0 | 16,3 |
Market capitalisation in €m as at 31/12 | 657,0 | 601,2 | 746,6 |
Dividend per share in EUR | 0,23 | 0,25 | 0,351) |
P/E ratio ordinary shares | 8,0 | 9,7 | 4,1 |
*) In the 2022 financial year, the accounting method for investment property was changed. In accordance with IAS 8 the previous year's figures were adjusted accordingly.
- Proposal to the 85th Annual General Meeting of BKS Bank AG on May 8, 2024
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