International

The Austrian branch, founded in 2001 and headquartered in Vienna, was converted into a full-service Austrian bank in the form of a public limited company in financial year 2006. This not only reflects the growing significance of Sal. Oppenheim's activities in Austria itself, but also creates the central springboard from which the Bank can expand into the countries of central and eastern Europe. With locations in both Vienna and Salzburg, the 52 employees of Sal. Oppenheim jr. & Cie. (Österreich) AG, along with the Czech representative office in Prague, focus on the core business divisions Asset Management and Investment Banking.

Business performance 2006

The favourable overall tax framework for investments in Austria has driven the dynamic expansion of the asset management business with domestic and foreign clients. In the reporting year, total assets under management by Sal. Oppenheim in Austria, in both the retail and the institutional business, increased by 31% to € 3.9 billion. Income was up by 72% year-on-year. This meant that Bank Sal. Oppenheim jr. & Cie. (Österreich) AG achieved a new record with net income for the year (after tax) of € 2.5 million.

The offer of total-return concepts in the bond segment prompted an increase in the number of clients in asset management, particularly with respect to insurance companies, but also among high-net-worth private clients and foundations. This also applied to the Czech market, where Sal. Oppenheim launched a fund managed in line with the total return approach. Considerable volume was also placed with institutional funds in the real estate segment. Sal. Oppenheim Austria played a key role in the foundation of the Austrian certificate forum “Zertifikate Forum Austria” in a move designed to support and develop the Austrian market for certificates and structured products. Investment Banking/Corporate Finance provided support for several successful transactions including the sale of VA Tech Hydro and the IPOs of BioDiesel International AG and CA Immo International AG.

Outlook 2007

Sal. Oppenheim jr. & Cie. (Österreich) AG will be placing more emphasis on the Investment Banking division in the future. The creation of a separate team for the corporate finance business will enable the bank to expand its successful dovetailing concept for Private Banking and Investment Banking. Furthermore, the establishment of an equity research department in Vienna is intended to strategically develop market potential in Austria and eastern Europe, and to exploit it in a more targeted manner. The opening of the representative office in the Czech Republic in 2005 is to be followed in 2007 by an office in Warsaw.

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