ANNUAL REPORT 2006

Graz, April 2007

2

CONTENTS

ANNUAL REPORT 2006

Foreword

Management, bodies and

employees of Raiffeisen-

Landesbank Steiermark

Review of the year 2006

Raiffeisen-Landesbank in its 80th

year of business

Raiffeisen Banking Group Styria

Balance sheet

Profit and loss account

Consolidated balance sheet

Report by the Supervisory Board

3

5

12

17

24

30

33

36

41

Markus Mair

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Banks live on their customers’ trust. A fact that has onceagain been proven by the developments in the Austrianbanking world in 2006. The Raiffeisen banking institutionsin Styria have lived by this motto for 113 years and not onlysince the onset of the turbulent times in banking. Nocustomer of ours has ever had to fear for his money. Andthey will not have to do so in future either.

We did not deviate from our way in 2006. The RaiffeisenBanking Group in Styria, as well as Raiffeisen-LandesbankSteiermark continued to grow and proved their roles aslarge and safe vessels that stay on course and arrive safelyat their destination – even when the sea gets rough.

Data, facts and figures are one thing. Life is another.Record balances are pleasing, and yet sometimes theyarouse resentment. Especially when it is unclear what theprofits are used for. While other companies are dominatedby the mere strive for profit optimisation, we at Raiffeisenhave adopted a different approach. As providers offinancial services we are, of course, bound to economicsuccess. Our pursuit of economic success is, however,complemented by a high degree of social responsibility. Aconsiderable part of our profit is spent in our countrythrough sponsorships and advertising – thereby makingmany things possible or at least easier. Our commitmentranges from sports associations, cultural initiatives andfestivals to local fire brigades, kindergartens and more. Inaddition, we organise numerous information events forbusinesses and the people living in this country. We dothat because we want to ensure their competitive edgethrough information and make them fit in business. Banks,in particular, will only be successful if the environment theywork in is successful, too.

Success is achieved in teams. My gratitude goes out toour customers who honoured us with their loyalty again in2006 and made a good result possible. I would also like tothank our owners, the Styrian Raiffeisen banks; there ishardly another Austrian province where Raiffeisen standsas strongly united as in Styria. This Styrian approach isone of the secrets of our success. And I would also like tothank our members of staff. It is them who turn theRaiffeisen concept into reality, day by day. Our successwould not be possible without their commitment.

Markus Mair

Chief Executive Officer

Art and culture is the central themerunning through our Annual Report

2006. Raiffeisen-Landesbank Steier-mark, and with it the entire RaiffeisenBanking Group in Styria, have for manyyears been sponsors, supporters aswell as patrons of art and culture. Thelist of activities in this field is long andranges from the styriarte festival, operaproductions, the “Kinder ins Theater”initiative that aims to bring morechildren to theatre productions, toexhibitions at the Raiffeisen gallery atTummelplatz in Graz, and much more.Art is a regular part of the events weorganise. Art and culture rank high onour list of priorities.

RAIFFEISEN-LANDESBANK STEIERMARK

Management,bodies and employees

6

General Director Markus MAIR

Chairman of the Managing Board

COORDINATION

AND DEPARTMENTS

RAIFFEISEN BANK RELATIONS

Deputy General DirectorFriedrich LENGGER

Vice-Chairman of theManaging Board

RISK MANAGEMENT,

INVESTMENTS AND OPERATIONS

MANAGEMENT

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Member of the Managing Board Johann JAUK

COMMERCIAL CUSTOMERS

Member of the Managing BoardMartin JEINDL

ACCOUNTS, DEVELOPMENT

AND ORGANISATION

Member of the Managing BoardPeter HABERER

PRIVATE CUSTOMERS

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9

BODIES

CHAIRMAN

Wilfried VEJDA

1ST DEPUTY-CHAIRMAN

Johann RAUSCHER

2ND DEPUTY-CHAIRMAN

Albin CATER

SUPERVISORY BOARD BOARD OF TRUSTEES

MEMBERS

Othmar EDERER(Member of the Supervisory Board until 19 May 2006)

Johann GRATZER

Friedrich GRUBER

Hans JAUK

Herbert KOLB

Alfred LACKNER

Alois PABST

Herbert PRETTERHOFER

Josef SCHEROUNIGG

Erik VENNINGDORF(Member of the Supervisory Board since 19 May 2006)

STATE COMMISSIONERS

Gabriele HERBECK

Gabriele HERMANN

MEMBERS

Anton FISCHER-FELGITSCH

Edmund HÖDL

Hans HÖFLER

Franz KOCH

Johann POSCH

Franz POTZINGER

Franz ROTHSCHEDL

Peter SALZINGER

Franz SCHRANK

Engelbert SPRINGER

Karl TROHA

Franz TRUMMER

Hermine WENK

REPRESENTATIVES OF THE

EMPLOYEES’ COUNCIL

Erika LUBE

Gerhard MANN

Herbert STRALLHOFER

Josef HOFER

Walter GRUBER

Harald KORSCHELT

CHAIRMAN

Wilfried THOMA

1ST DEPUTY-CHAIRMAN

Ludwig STALLER

2ND DEPUTY-CHAIRMAN

Wilhelm WALCH

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ABLASSER Birgit ADAM Gottfried ADLER Gerald ADLER RosemarieAGLASSINGER Thomas AIGNER-LENDL Heidemarie ALBRECHER DanielaALBRECHER Wolfgang ALLMER Karl ALTENSTRASSER ManfredAMERSTORFER Sabine ANDRITZ Dorothea ARMBRUSTER ClaudiaARNDT Hansjörg AUER Karin AUER Peter AUGUSTIN Ingrid AUNER Gebhard■ BACHER Sabine BAIER Anton BARMUELLER Karoline BAUDENDISTELHelmut BAUER Heidemarie BAUERNHOFER Christian BAUERNHOFER JohannBAUMANN Alois BAUMGARTNER Anton BAUMGARTNER EwaldBAUMGARTNER Veronika BAUMHAKL Gerhard BECKER FriederikeBERGHOLD Elisabeth BERGMANN Sigrid BILEK Sigrid BINDER Claus BINDERKarl Thomas BIRKER Franziska BISCHOF Reinhold BISCHOF SiegfriedBLAINDORFER Eveline BLODER Andrea BOEHM Daniela BORSTNAR HansJörg BRANDL Heinz BRANDSTAETTER Christa BRANDSTAETTER GerhardBREITHUBER Irmgard BRETTERKLIEBER Martin BRUNADER Franz BRUNNER Alexander BRUNNER Christian BRUNNER Ingrid BUCHBERGERAnton BUCHEGGER Gert BURGSTEINER Johannes BURKHART Sylvia ■ CAPELLARI Barbara CSUK Elisabeth CSUK Robert CZENE FranzCZERNY Wolfgang ■ DAMPFHOFER BirgitDAMPFHOFER Johann DANI Tamara DERLERElisabeth DERLER Johannes DEUTSCH KarinDEUTSCH Elisabeth DEUTSCH Marion DIEBALDJosef DOERFFEL Karin DOKTER ThomasDOLINAR Martin DOLLENZ Olivia DOPPLERRosemarie DORNER Hannes DORNER HelgaDRAGSCHITS-HALAJ Katharina DREISIEBNEREva Maria ■ ECKHART Karl EDELSBRUNNERReinhold EDLER Martin EDLER Stefanie EFFERLMichael EGGER Birgit EHRENREICH GuentherEIBEL Anton EIBISBERGER Markus EIBOECKSteffen EISENBERGER Barbara EISENHUTMarkus EISNER Gerald EISNER GerhardEISNER Ingrid EISSNER Irmgard ELSNEG AnnaENDERLE Monika ENGELBOGEN JosefENGLEREva ERDELY Ladislaus ERKINGERReinhard ERNST Claudia ERTL ElisabethESTERL Bettina ■ FALESCHINI TinaFANKHAUSER Wolfgang FEICHTER GerhardFELBER Petra Johanna FELBER Wolfgang FELDHOFER Josef FELGITSCHERGerlinde FELGITSCHER Roland FERSTL Adolf FERSTL Aloisia FINK DorisFLECHL Christian FLECHL Cornelia FLECK Gerhard FLEISCHHACKERChristine FLEISCHHACKER Guenther FORCHE Thomas FREIBERGERWolfgang FREIDL Stefan FREISSMUTH Florian FRIEDRICH Alexander FRITZChristina FROEHLICH Elisabeth FUCHS Franz FUCHS Sabine FUERSTChristine FUNK Cornelia FURTLEHNER Isabella ■ GAEBLER Astrid GAISCHFranz GALLI Martin GAMPERL Marianne GANGL Karin GANGOLY DanielaGASSNER Arnold A. GASSNER Erna GAUSTER Karin GEIEREGGER Guenther GFRERRER Eva GIMPEL Michaela GLASER Hilde GLAUNINGERHelmut GLEHR Karl GLEICHWEIT Tanja GLETTLER Andreas GLETTLER 2Andreas GNEIST Mathilde GOBLIRSCH Hans GOBOLD-SCHOEPFER GabrieleGOETSCHL Karl GOETSCHMAIER Eva GOETZL Marlies GOETZL WalterGOGG Roswitha GOLAUTSCHNIG Patricia GOLLNER Bernhard GOSCH JosefGRABENHOFER Edith GRAF Werner GRAFONER Mathilde GRATZE JoachimGRATZER Johannes GREIMEL Franz GREINIX Martin GRIMM MariaGRINSCHGL Verena GROSS Ewald GROSSMANN Karl GROSZ RichardGROSZSCHEDL Birgit GROSZSCHEDL Franz GRUBER Andrea GRUBERAnita GRUBER Walter GSCHWEITL Franz GSPURNING Ilse GUNGL HelmutGUNHOLD Ariane GUTJAHR Hermine GUTMANN Theresia GUTTMANN Klaus■ HAAS Christoph HABERER Peter HABERLE Cornelia HACKL HerbertHADOLT Andrea HAIDACHER Hermann HAIDACHER Sieglinde HAIDACHERWalter HALLEUX Jörg HAMM Roswitha HAMMER Franz HANFSTINGL

Elisabeth HARRANT Gerlinde HARRER Andreas HARRER Petra HARTINGERGerhard HASEWEND Doris HASIBA Christina HATZ Walter HATZL AnnemarieHAUPTMANN Markus HAUPTMANN Michaela HAUSLEITNER FlorianHAUSMANN Tanja HAZELMAYER Andrea HEHER Vinzenz HELD HeikoHERMANN Stefan HERZER Wilhelm HIERZER Ingrid HINTEREGGER EvaMaria HINTEREGGER Katrin HIPPACHER Elisabeth HIPPACHER ErnstHIRSCHMANN Josef HIRZER Mia-Ileana HOEFER Walter HOEFLECHNERBarbara HOEFLER Herbert HOEGL Siegfried HOFER Brigitte HOFER JosefHOLD Gerfried HOLL Monika HOLZAPFEL Johann HORBATH Margit HORNERMarianne HUBER Brigitta HUBER Hermann HUBER Johann HUBMANNWilhelm HUDA Meike HUDL Daniel HYDEN Herbert ■ IMENSEK ThomasINTHALER Sandra ■ JAINDL Gabriele JAMBREC Wolfgang JAMMERNEGGWolfgang JANISCH Martina JANSKY Manfred JANTSCHER Albine JAUKAlexander JAUK Johann JAUK Margit JAUK Sonja JAUTZ Margit JEINDLMartin JENSEN Kjeld Seneca JONACHER Barbara ■ KAGER DanielaKAHLBACHER Monika KAHR Andreas KAHR Renate KAINER MariaKAISERFELD Hildegard KALCHER Gerhard KALCHER Lisbeth KALCHER

Peter KALSBERGER Uwe Thorsten KAMPER Andreas KAMPER Rosmarie KAMRAT MarkusKAPFENSTEINER Andrea KARABELAS RenateKARNER Huberta KARNETSCHNIGG RudolfKASCHNIGG Karin KATSCHNIG Karin KAUDELHelmut KAUFMANN Marion KAUFMANN I GerhardKAUFMANN II Gerhard KERN Ewald KERN MichaelKERN Renate KESSLER Beate KETTL Dieter KIEFER Michael KIEFER Walter KIELHAUSER Sandra KIENREICH Armin KINDLHOFER ElisabethKIRCHENGAST Christina KITTINGER DorisKLAMPFER Manfred KLASNIC Marianne KLEINDLGünter KLEINDL-POSCH Renate KLETZMAYR MariaKLINGSBIGEL Brigitte KLOECKL Dagmar KLOSA UweKNAPP Maria KNAUHS Maria KNECHTL EvamariaKNEISSL Elke KOCH Evelyn KOCH Gernot KOECKJohann KOESTL Johann KOETSCHLER SigibertKOETZ Ernest KOFLER Daniela KOGLER BrigitteKOGLER Doris KOGLER Enrico KOGLER GeraldKOGLER Werner KOHL Helmut KOHL Johann KOHL

Maria KOHL Sabine KOINEGG Sabine KOLB Karin-Gabriela KOLB MariaKOLLEGGER Renate KOLLER Michaela KOLLER Petra KOLLER PhilippKOMPASSO Peter KONRAD Alfred KONRAD Sieglinde KORMANN ThomasKORNBERGER Melanie KORP Ernestine KORSCHELT Harald KOTZBECKKlaus KOWALD Elfriede KRACH Gisela KRAINZ Eva KRANER AntonKRANKENEDL Manfred KRAXNER Anna KRAXNER Astrid KRAXNER IsabellaKRAXNER Thomas KRENN Franz KRESBACH Walter KRIEGL Josef KRISPELIrene KRISPEL Reinhard KROBATH Nicole KROIS Marlies KROIS WalterKROPIK Harald KUHELNIK Franz KUMPITSCH Johannes KUNDEGRABERMartin KUNTNER Robert KUPFER Christian KUPSCH Heinz-Juergen KURZBrigitte ■ LACKNER Alfred LACKNER Josef LADLER Stefan LAFER SusanneLAGNOL Franz LALLITSCH Nikolaus LAMBAUER Dietmar LAMMER JohannesLANG Rosa LANG Thomas LANGREITER Detlev LANZ Josef LECHNERGabriele LECHNER Johann LECHPAMMER Michaela LEDERER Bettina LEINDLChristine LEINDL Helmut LEINER Andrea LEITGEB Eleonore LEITNER JohannaLEITNER Rene LELLECK Alfred LENGER Irmgard LENGGER FriedrichLENHARD Elfriede LENHARDT Josef LERCHBACHER Hans-Juergen LESKYSabrina LESNIK Katrin LEXNER Uwe LIND Elisabeth LIND Susanne LINDNERGerhard LIPP Anita LOH Johann LOIPNER Wolfgang LOITZL BarbaraLORENZER Michael LUBE Erika LUBER Heidemarie LUBI ChristophLUEFTENEGGER Claudia LUTTENBERGER Gerald ■ MACHER Karl MADNERHelene MAIERHOFER Claudia MAIR Markus MAITZ Gertrude MAITZ RoswithaMAJCAN Sabine Martina MALY Sabine MANDL Brigitte MANN Gerhard

OUR EMPLOYEES “THE SUCCESSFUL ORCHESTRA”

Employees are the key to success for financial service

providers. On 31 December 2006, Raiffeisen-

Landesbank Steiermark AG employed 808 people.

The slight growth in HR continued (2005: 792

employees) and is mainly caused by the close

cooperation with our subsidiaries that resulted in

employees changing from there to Raiffeisen-

Landesbank. The Austrian, as well as the

international, financial markets are subject to a

process of change. Framework conditions are

changing and they are a challenge for Human

Resource development, for recruitment and HR

administration.

We thank our employees

most sincerely for their

great enthusiasm and high level

of personal commitment and for

making the continued success of

Raiffeisen-Landesbank in the

interests of its customers and

owners possible.

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MAROLD Kurt MARX Inge MARX Peter MATL Harald MATLSCHWEIGER Margret MATSCHINEGG Anneliese MATZHOLD Marianne MATZHOLD PeterMAURER Andreas MAURER Gerlinde MAURER Ingrid MAURER WalterMAUTHNER Gerd MAXONES Doris MAYER Gerhard MAYER Horst MAYER Ursula MAYERDORFER Ute MAYR Paulus MEIREGGER FranzMEISENBICHLER Iris MEISTER Helmut MEIXNER Hannes Mick MENAPACEMaria MICHITSCH Andreas MINAUF Manfred MOERTH Waltraud MOESTLJosef MOISES Roswitha MORARU Marin MORARU Veronica MORO VerenaMOSDORFER Heide MOSER Doris MOSER Marianne MOSER Martin Urban MOTTER Herbert MUEHLBAUER Alexandra MUELLNER GeraldMUENZER Christian MURG Thomas MURTINGER Bernd ■ NAGER MariaNARATH Beatrix NEBEL Heinz NEMECEK Daniela NEUBAUER SandraNEUHOLD Kurt NEURATHNER Eva NIESNER Katharina NIGITZ ChristaNINAUS Roswitha NOVAK Michaela ■ OBERER Gabriele OBERHUBER MariaOBERTHALER Roswitha OFNER Petra ORNIG Josef Gerhard ORTNER WilhelmOSLAJ Andreas ■ PAAR Gabriele PACHER Wolfgang PACK Matthias PAIERL Annelies PAMSL Marianne PANZER Gabriele PATTERER Judith PAULITSCHJosef PAUSCH Johann PAYRICH Eva PEIERVeronika PEINSITH Thomas PEINSITT DorotheaPEISSL Jürgen PELZMANN Alois PENDL JohannPENDL Karl PERL Meike PERSCHLER SabrinaPESSENHOFER Martina PFANNER Iris PFEIFERKlaus PFNISS Gregor PICCOLROVAZZI HLATKY M.G. PICHLER Charlet PICHLER Christian PILGEREva PINEGGER Johannes PINTHER Thomas PIRERIngrid PIRSTINGER Herta PLANINSCHITSCH MonikaPLANKO Maria PLASCHKA Stefan PLATZER VerenaPLEDL Elisabeth PLETERSEK Thomas PLEWAGerald PLODER Thomas POBASCHNIG BettinaPOCK Rudolf PODMENIK Christine PODMENIKGerhard POELLINGER Richard POELTL ElisabethPOETTLER Robert POKRIVKA AndreasPOLLHAMMER Christine PONTASCH-HOERZERMichael POPIC Irena POSCH Siegfried POTZINGERHelmut PRANGL Margareta PRANTER EvelynPRATH Ulrike PRATSCH Harald PREDOTA Irmgard PREININGER Ulrike PREITLER Franz PREM Johannes PRESSLER Werner MartinPRETTENHOFER Maria PUCHAS Klaus PUCHER Bettina PURRER IngridPUSTER Wilhelmine ■ QUAISER Hannes ■ RABEL Christina RABL SonjaRADASCHITZ Martin RAHBERGER Gerhard RAHM Michael RAINBACHERChristine RAINER Randolf RANNAK Konrad RAPPOLD Franz RATTINGERChrista RAUSCH Regina RAUSCHENBERG Petra RECHL Klaudia RECHLINGWaltraud RECHLING-GREIMEL Andrea REGULA Rolf Arno REICHMANN Eva-Maria REINISCH Karl REINISCH Maria REINTHALER Juergen REISCHERGerhard REISENHOFER Herwig REISSMUELLER Doris REITER Franz REMLERChrista RESCH Barbara REUMUELLER Heinz RICHTER-KERNREICH EvaRIECK-DILSKY Sabina RIEDRICH Franz RIEGER Elisabeth RIEGLER HermannRIEGLER Regina RINNERGSCHWENTNER Ljilja RITTER Theresia ROBERTSONEvelyn ROGI Franz ROHLFING Günther ROHRER Peter ROM EdeltraudROSENBERGER Franz ROUBAL Martin RUCKER Hans Peter RUDERER-KNOLLMAYR Petra ■ SACHS Johann SACKL Harald SAFRAN Eva-MariaSAGMEISTER Ulrike SAILER Sylvia SAMEC-GATTER Ariane SAMMER AntonSATTLER Peter SAUER Johannes SAURER Gerald SCHAEFMANN JohannesSCHAFFER Kunibert SCHAFFER Susanne SCHAFLER Daniel SCHALLERJosef � SCHANES-WALENTA Gabriele SCHANTL Daniela SCHEER PetraSCHEER Reinhold SCHEICHER Marianne SCHEIN Alexander SCHENKMartina SCHERF Karin SCHERZER Erna SCHETT Renate SCHEUCHERElisabeth SCHEUCHER Werner SCHEUERMANN Bernhard SCHIFFERElisabeth SCHIMPL Doris SCHINTLER-TSCHRIETER Petra SCHISTER Harald

SCHISTER Theresia SCHLAG Manuela SCHLAR Dietmar SCHLATZER Christian SCHLEGL Martina SCHLOEGL Herbert SCHLOEGL Margit SCHMERUrsula SCHMIDBAUER Johannes SCHMIED Hermann SCHMIED UteSCHNABL Ferdinand W. SCHNEDLITZ Gerhard SCHNEEBACHER KarlSCHNEIDER Waltraud SCHNEIDER II Waltraud SCHOBER Robert SCHOLLERJohann Alois SCHOTTER Helmut SCHRAMMEL Josef SCHRANGL MarkusSCHREIBMAYER Rosemarie SCHROETTNER Michael SCHROETTNER PeterSCHULZ Daniela SCHWABL Thomas SCHWARZ Gerfried SCHWARZ GuenterSCHWARZ Kerstin SCHWARZENEGGER Renate SCHWEINZER ErwinSCHWEINZGER Margit SCHWIMMER Sonja SCHWINDSACKL ErnestSEEBACHER Johann SEIDLER Monika SEINER Heidi SEUFZER RoderichSIDAK Gerald SILBERSCHNEIDER Heidrun SIMBUERGER JürgenSIMMERSTATTER Markus SIMO Petra SINGER Anton SIVETZ Evelyn SIXTWolfgang SKALE Tatjana SKEDELJ Anita SONNLEITNER Anton SORGERUrsula SPATH Rene SPITALER Harald SPITZER-GABRIEL Eva-ChristineSPREITZHOFER Anna-Maria STADLER Franz STADLER Roswitha STANGLMonika STEGER Helga STEGER Peter STEGH Elisabeth STEINWIDDER

Bernd STEIRER Evelyn STELZER RudolfSTENGG Wolfgang STOERI Silvia STOISER-NESTL Doris STRACHWITZ SiegmundSTRALLHOFER Herbert STRANZ CorneliaSTREIBL Peter STREICHER Christina STREITElisabeth STROBL Christoph STROBL ErichSTROBL Markus STROHMEIER SigridSTROHRIEGL Veronika STROMBERGER BrigitteSUDI Gerhard SUPPANSCHITZ Otto SUSCHNIGGKlaus SUTTNIGG-GRUBER Elisabeth ■

TACKNER Anton TAEUBEL Gudrun TANFARARAKAR Tamara TANTSCHER Robert TARMANNElke TARTLER Bernhard TAX Brigitte TEMMELMaria TENGG Franz TERSANSKI SusanneTEUSCHLER Liselotte THALER Edith THALLERWolfgang THEISL Angela THEISSL ChristianTHIER Michael THIER Rosalinde THOMANNHerbert THOSOLD Dietmar THURMAIER Klaudius TIEFENGRUBER Walter TOTH JuliusTRANTURA Thomas TRAPPL Jenny TRAUSSNIGSandro TROESTER Siegfried TROHA Elisabeth

TRUMMER Alois TRUMMER Bettina TRUMMER Christine TRUMMER ClaudiaTRUMMER Elisabeth TRUMMER Siegfried TSCHICK Harald TSCHIKOF Stefan■ UITZ Ingrid UMFER Priska UNGER Anton UNGER Gerhard UNTERWEGERFlorian URAY Heinrich ■ VALLANT Gerhard VATERL Manuela VEIT BettinaVEITSBERGER Christian VERONIG Bernd VOLLER Wilhelm ■ WAGNERBernhard WAGNER Gunther WAGNER Martina WAIDACHER Irmgard WALCHAnita WALCHER Werner WALLNER Daniela WALLNER Marja Liisa WALLNERPatrick WALTERSDORFER Karin WEBER Astrid WEBER Christine WEBERJohannes WEBER Martin WEBERN Wilfried WEIGL Alexander WEIGL BeateWEINGRABER Werner WEINGRILL Michael WEINHANDL GerhardWEINHANDL-ROECK Maria WEINHOFER Werner WEISS Christof WEISS ElkeWEISS Heribert WEISSENSTEINER Walter WESENER BernhardWIEDEMSCHECK Elfriede WIENER Rudolf WIESER Edith WIESER Rosa-MariaWIESER Sabine WIESER Ulrike WIESNER Johann WILDBACHER EvelynWINDISCH Josef WINKLER Gerhard WINTERLEITNER Bernd WINTERLEITNERBernd WITEK Joerg WOHLESSER Johann WOLF Ingrid WUENSCHER Matthias WUNDER Ursula WUNDERL Renate WURZINGER Marlene AnnaWURZINGER Norbert ■ ZACH Bettina ZAUHAR Birgit ZAUNSCHIRM IngridZECHNER Gabriele ZECHNER Jasmine ZEHETLEITNER Thomas ZEHETNERMartin ZERKOWITZ Alexander ZIERSCH Waltraud ZIMMERMANN AstridZISSER Roland ZNIVA Wolfgang ZOECH Martin ZOEHRER Anna ZOELZERMichael ZOERNER Peter ZOTTER Daniela ZUEGNER Ingrid

We are called upon to increase the productive

efficiency of the company and to utilise synergies

resulting from the cooperation with our subsidiaries. In

2006, training, ongoing training and skill

enhancement played a leading role in the field of

HR development. 59 employees completed the

basic training course and 18 employees the

advanced technical training. In the field of recruiting,

we opted for both internal advertising of vacancies

and the external Raiffeisen Internet Job Exchange,

and were able to find the perfect people for the

jobs. As of a year ago, our employees receive their

salary statements electronically via ELBA-internet.

In 2006, we also implemented a new, modern

wage system in cooperation with the Employees’

Council. The new system offers more attractive

options for young and newly recruited employees in

particular.

Our thanks go out to our

Employees’ Council who

organises all its activities on

behalf of our employees with a

view to the requirements for a

positive development of the

company as a whole.

The Managing Board

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REVIEW OF THE YEAR 2006

13

14

REVIEW OF THE YEAR 2006

15

Raiffeisen-Landesbank in its80th year of business

Saving deposits

Giro deposits

Own issues

Other inter-bank deposits

Raiffeisen banks

DEPOSITS AND LOANS

Deposits. In accordance with the function of

Raiffeisen-Landesbank as the financial clearing

centre of the Raiffeisen Banking Group, deposits are

predominantly made up by inter-bank deposits of

member banks. Inter-bank deposits rose by

EUR 199 m to EUR 2.1 bn.

Deposits by customers amounted to EUR 996 m and

break down into EUR 519 m deposits on giro

accounts and EUR 477 m on savings accounts. In

2006, debts evidenced by securities amounted to

EUR 1.5 bn, which is an increase by 9.5 % compared

to the previous year.

At the end of the year 2006, other inter-bank

deposits amounted to EUR 1,181 m.

Overall deposits were nearly EUR 6 bn on

31 December 2006.

Loans. By the end of the year 2006, loans granted

by Raiffeisen-Landesbank Steiermark amounted to

an aggregate of EUR 3.7 bn, of which “loans to

banking institutions” in the amount of EUR 1,276 m.

The financing volume covering all types of customer

business was EUR 2.3 bn, with the lion’s share

being EUR 1.7 bn to commercial and corporate

customers. Lending to private customers came to

EUR 161 m.

As far as lease financing is concerned, Raiffeisen-

Landesbank Steiermark was able to achieve

EUR 304 m in financing.

SOURCE OF FUNDSin EUR million

439

479

1,417

1,032

1,944

2005

477

519

1,552

1,181

2,143

2006

5,311

5,972

18

19

Private customers

Commercial customers

Agricultural financing (agricultural cooperatives, etc.)

Leasing

Credit institutions

Others

LOANSin EUR million

TRADE/COMMERCIALCUSTOMERS

THE WORLD STAGE

Raiffeisen-Landesbank Steiermark aligns its

strategic orientation in the trade and commercial

customer business on industry, institutions and the

public sector with their associated companies. The

overall volume of the financing activities in the

trade/commercial customer area was increased by

approximately EUR 161 m (+ 6.5 %) to reach

EUR 2.6 bn in 2006. RLB has thus once again

succeeded in expanding its market position in the

trade/commercial customer business and to

establish Raiffeisen-Landesbank Steiermark as a

partner for Styrian economy.

Raiffeisen-Landesbank Steiermark was able to

solidify its position as a partner for national and

international syndicates. The overall volume in this

business segment amounts to about EUR 367 m

(+ EUR 77 m).

In the framework of the “Raiffeisen Business Talks”,

our bank organised the “Due Diligence Day” and an

event entitled “Acquisition and sale of companies –

what to consider”, and we had “Ukraine visiting

Raiffeisen-Landesbank”. A highlight of 2006 was the

1st European conference held at Graz Airport in 2006

that focused on Croatia, Romania, Bulgaria, Serbia

and Turkey.

147

1,558

167

319

1,385

2005

161

1,684

203

304

1,276

87

2006

3,5763,715

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OUR PRIVATE CUSTOMERBUSINESS

PERFORMING FOR OUR AUDIENCE

The private customer business of Raiffeisen-

Landesbank Steiermark is carried on in twelve banks

in Graz and Frohnleiten and in the centres for asset

consulting, building and homes and the Raiffeisen

UniCenter.

In 2006, initial deposits rose by 7.1 % to EUR 116.3 m

and saving deposits by 9.1 % to reach EUR 450.7 m;

this means an increase of primary funds by 8.7 % to

EUR 567.0 m. All in all, overall funds increased by

7.8 % in 2006 and reached EUR 951.9 m.

Private financing increased, too, in 2006; it rose by

6 % to reach EUR 147.3 m. Aggregate financing, with

building society financing included, amounted to as

much as EUR 221.9 m.

SHAREHOLDINGSSTRATEGIC COMMITMENT

During the 2006 business year, the inventory of our

shareholdings increased by approximately EUR 72 m

to EUR 699 m. This corresponds to an increase of

11.5 %. The main changes in shareholdings relate to

capital increases of Raiffeisen-Zentralbank

Österreich AG and the foreign banks in Croatia,

Bosnia and Herzegovina and Slovenia.

The most significant part of shareholdings of

Raiffeisen-Landesbank Steiermark is in the one-stop

finance business line and includes shareholdings

within the group, above all those in Raiffeisen-

Zentralbank Österreich AG and its subsidiary

Raiffeisen International Holding AG. With the majority

shareholding of 75 % in Landes-Hypothekenbank

Steiermark AG, the Raiffeisen group of banks and

Landes-Hypothekenbank Steiermark AG are together

by far the largest banking group in southern Austria.

In 2006, we established the “Steirische Technologie-

und Wachstumsfonds Beteiligungen AG” as a private

equity fund together with the Province of Styria, other

banks and insurance agencies. The fund was

established with the aim to provide equity to Styrian

companies when they need support for expansions,

management buy-outs and management buy-ins,

acquisitions and succession schemes.

In addition, Raiffeisen-Landesbank Steiermark has

holdings in “Steirerfrucht Betriebsgesellschaft m.b.H.

& Co KG” and “Obst Hofer Handels-GmbH”, the most

important fruit marketing companies in Austria.

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RISK MANAGEMENTLOW RISK – MORE FUN

Our risk management has been restructured and

combines all aspects dealing with risks associated

with banks. In 2006, the balance sheets of 13,872

customers of 10,576 companies from the most

varied lines of industry were analysed. In addition,

numerous balance sheets were discussed and

financial plans drawn up that served as a basis for

investors’ decisions in the trade/commercial

customer business.

A total of 658 refinancing loans were granted with an

aggregate volume of EUR 1.4 bn. The refinancing

volume vis-à-vis Styrian Raiffeisen banks was

EUR 1.2 bn on 31 December 2006.

In the field of reporting, one focus was on the

development of equity calculation according to

Basel II.

LIAISON TO RAIFFEISEN BANKSHARMONY IN TUNE

One of the core tasks of Raiffeisen-Landesbank is the

support of the Styrian Raiffeisen banks in the fields of

marketing, distribution, organisation and operational

management. This includes also the support in

designing, developing and implementing marketing

concepts, the development of new organisational

concepts and the introduction of professional

management tools.

The focus in marketing was on “investment and

provisions” in 2006. During the first six months of the

year, the Raiffeisen depot check was supported with

regard to distribution organisation and marketing. In

the second half of the year, the focus was on the

Raiffeisen pension system.

A particular highlight in 2006 was once again the

Raiffeisen Award, a competition among employees,

carried out in four groups according to the size of the

Raiffeisen bank.

Our cooperation with the “evolaris” research platform

was continued in 2006. One project was the

cooperation in the pilot study “Mobile marketing. The

mobile phone as a means of marketing” at the

Zinzendorfgasse/UniCenter branch.

Another focal point in 2006 was the provision of

services to the Styrian Raiffeisen banks in operational

company control, which included a comprehensive

economic bank analysis, the preparation of medium-

term company plans, the assessment of locations

and the introduction of professional calculation

systems.

22

FOREIGN BUSINESSMULTI-CULTURAL

Styria has enjoyed above-average growth rates in

export over the last few years. We therefore focus

strongly on foreign business. The dynamism

triggered by the export economy entailed high

growth rates, especially in the documentary

business. The Asian markets are still the decisive

markets for this line of business. The enormous

growth potential of the national economies of China

and India could soon make this region the second

largest national economy in the world.

Behind China and India, Central and Eastern Europe

is the economic region with the second largest

growth rates.

OUR COMPUTATIONAL CENTRESETTING THE RHYTHM IN IT

Availability, high efficiency and high processing

speed are the challenges in the field of information

technology (IT), organisation and handling.

Ongoing developments in the organisational and IT

field are carried out in close cooperation with our

partners in the Raiffeisen group. The Raiffeisen

technology centre handles 4,200 bank work stations

and all the self-service terminals for customers. More

than one million transactions are managed every

day. With a number of 12 m, the e-mail volume

reached new record heights in 2006. Investments in

the network and mainframes took account of new

applications requiring increasingly high line and

computer speeds. As far as office programmes are

concerned, 2006 saw the comprehensive switch to

the current Microsoft operating system. Demands on

safety of self-service terminals made the change to

new model versions necessary.

2006 was also the year of criminal attacks on

electronic banking systems of all banks. Raiffeisen-

Landesbank responded to this threat by introducing

new procedures to safeguard electronic transfers

and by offering targeted information to our

customers.

As far as payment transactions are concerned,

preparations are dedicated to the common

European project SEPA (Single European Payment

Area). SEPA aims at standardising non-cash

payments within the Euro countries as from

1 January 2008 in such a way that there will no longer

be any difference between national and cross-border

payments for bank customers.

On the customer side, the trend towards cashless

payments continued with growth rates in electronic

banking and payments at ATM payment terminals or

cash points reaching about 15 %.

In 2006, 90.5 m domestic and foreign payment

transactions were handled via Raiffeisen-

Landesbank as a clearing centre; in the securities

field – handling securities orders from the customer

to the stock exchange – 725,000 orders were

managed, which corresponds to a 30 % increase

compared to last year.