ANNUAL REPORT 2005

2368_06_rlb_gb_umschl 30.06.2006 13:49 Uhr Seite 1

ANNUAL REPORT 2005

Graz, April 2006

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ANNUAL REPORT 2005

Foreword

Management, officials and

employees of Raiffeisen-

Landesbank Steiermark

Review of the year 2005

Raiffeisen-Landesbank in its 79th

year of operation

Outlook

The Raiffeisen Banking

Group Styria

Balance Sheet

Profit and Loss Account

Consolidated Balance Sheet

Activity Report by the Supervisory

Board

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5

12

17

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30

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CONTENTS

General Director

Markus Mair

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For Raiffeisen-Landesbank Steiermark the year 2005 wasextremely successful. In the middle of the year our Bankbecame a public limited company, there was a generationchange at the head of the Managing Board, and we werealso extremely successful from a commercial point of view.Last year we continued to grow and now we are an incom-parable size.

Both for the future-looking change of legal form and alsofor the satisfactory balance sheet 2005, one man inparticular was principally responsible: General DirectorGeorg Doppelhofer. It was he too who, with circum-spection and single-mindedness, led an agriculturallyoriented bank to become a major regional bank. Today, asa one-stop finance group, we are naturally active in allbusiness lines, we hold 75 per cent of Landes-Hypothekenbank Steiermark AG and furthermore haveholdings in the network banks in Hungary, Croatia, Bosnia-Herzegovina and Slovenia. For his outstandingachievements in more than 25 years as General Director ofRaiffeisen-Landesbank Steiermark we owe GeorgDoppelhofer a great debt of gratitude.

At the beginning of 2006 I took over the helm at RLB. I regard the confidence shown in me as a great honour,and it is of course a commitment to our customers and ourmembers of staff. A great deal of what has proved itself willnaturally be continued, but some things will change, notleast of all because future requirements of RLB will bequite different. Building upon a solid foundation, we willestablish further optimum prerequisites for the future of ourcompany. I will make my contribution to ensuring that RLBcontinues to be as successful as it has been over the last25 years.

The Annual Report offers me the opportunity to say “thankyou”. My thanks go first of all to our customers, whohonour us each day with their trust, thus allowing us toachieve our success. I also thank our owners, the now 93independent Raiffeisen banks in Styria, for their work inand for the Association. Together we have become thelargest and most successful banking group in SouthernAustria.

My gratitude also goes most particularly to our membersof staff. As service providers, every day they are highlymotivated and service-oriented partners to our customers.It is they too who have made that special Raiffeisen culturea reality. Through their constructive and positive collaboration they have enabled us to be successful yearafter year and that cannot be regarded highly enough.

Markus Mair

General Director

RAIFFEISEN-LANDESBANK STEIERMARK

Management

Officials

Employees

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General Director Markus MAIR

Chairman of the Managing Boardfrom 1.1.2006

COORDINATION

AND DEPARTMENTS

CARE OF RAIFFEISEN BANKS

General Director Georg DOPPELHOFER

Chairman of the Managing Boarduntil 31.12.2005

COORDINATION

AND DEPARTMENTS

Deputy General DirectorFriedrich LENGGER

Vice-Chairman of the Managing Board

RISK MANAGEMENT

HOLDINGS AND OPERATIONS

MANAGEMENT

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DirectorJohann JAUK

COMMERCIAL CUSTOMERS

DirectorMartin JEINDL

ACCOUNTS, OPERATIONS

AND ORGANISATION

DirectorPeter HABERER

PRIVATE CUSTOMERS

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OFFICIALS

SUPERVISORY BOARD

MEMBERS

General Director

Othmar EDERER

Chairman of the Managing Board of

Grazer Wechselseitige Versicherung AG

Johann GRATZER

Managing Director of Raiffeisenbank

Anger-Puch-Koglhof

Friedrich GRUBER

Chairman of Obersteirische Molkerei

Deputy Advocate General Hans JAUK

Chairman of

Raiffeisenverband Steiermark

Herbert KOLB

Managing Director of

Raiffeisenbank Gröbming

Alfred LACKNER

Chairman of Raiffeisenbank Voitsberg

Alois PABST

Chairman of Lagerhaus Graz Land

reg. Genossenschaft m.b.H.

Herbert PRETTERHOFER

Chairman of Raiffeisenbank Breitenau

Josef SCHEROUNIGG

Managing Director

of Raiffeisenbank Graz-Straßgang

REPRESENTING THE

EMPLOYEES’ COUNCIL

Erika LUBE

Gerhard MANN

Herbert STRALLHOFER

Josef HOFER

Walter GRUBER

Harald KORSCHELT

PRESIDENT

Wilfried THOMA

Chairman of Raiffeisenbank

Trofaiach-Leoben

Chairman of RLB-Stmk Verbund

reg. Genossenschaft m.b.H.

Chairman of RLB-Stmk Holding

reg. Genossenschaft m.b.H.

1st VICE-PRESIDENT

Ludwig STALLER

Managing Director of Raiffeisenbank Pölstal

Deputy Chairman of RLB-Stmk Verbund

reg. Genossenschaft m.b.H.

Deputy Chairman of RLB-Stmk Holding

reg. Genossenschaft m.b.H.

2nd VICE-PRESIDENT

Wilhelm WALCH

Chairman of Raiffeisenbank Mureck

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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 Claudia AUERKarin AUER Peter AUGUSTIN Ingrid AUNER Gebhard � BACHER SabineBAIER Anton BARMUELLER Karoline BAUDENDISTEL Helmut BAUERElisabeth BAUER Heidemarie BAUERNHOFER Christian BAUERNHOFERJohann BAUMANN 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 GerhardBREG Barbara BREITHUBER Irmgard BRETTERKLIEBER Martin BRUNADERFranz BRUNNER Alexander BRUNNER Ingrid BUCHBERGER AntonBUCHEGGER Gert BURGSTEINER Johannes BURKHART Sylvia � CAPELLARI Barbara CSUK Elisabeth CSUK Robert CZENE FranzCZERNY Wolfgang � DAMPFHOFER BirgitDAMPFHOFER Johann DANI Tamara DECKERAndreas DERLER Elisabeth DERLER JohannesDEUTSCH Elisabeth DEUTSCH KarinDEUTSCH Marion DIEBALD Josef DOERFFELKarin DOKTER Thomas DOLINAR MartinDOLLENZ Olivia DORNER Hannes DORNERHelga DRAGSCHITS-HALAJ KatharinaDREISIEBNER Eva Maria DUFFEK Brigitte� ECKHART Karl EDELSBRUNNER ReinholdEDLER Martin EDLER Stefanie EFFERL MichaelEGGER Birgit EHRENREICH Guenther EIBELAnton EIBISBERGER Markus EIBOECK SteffenEISENHUT Markus EISNER Gerald EISNERGerhard EISNER Ingrid EISSNER IrmgardELSNEG Anna ENDERLE MonikaENGELBOGEN Josef ENGLER Eva ERDELYLadislaus ERKINGER Reinhard ERNST ClaudiaERTL Elisabeth ESTERL Bettina � FALESCHINITina FANKHAUSER Wolfgang FEICHTERGerhard FELBER Petra Johanna FELBERWolfgang FELDHOFER Josef FELGITSCHER Gerlinde FELGITSCHER RolandFERSTL Adolf FERSTL Aloisia FLECHL Christian FLECHL Cornelia FLECKGerhard FLEISCHHACKER Guenther FLEISCHHACKER Christine FORCHEThomas FREIBERGER Wolfgang FREISSMUTH Florian FRIEDRICH AlexanderFROEHLICH Elisabeth FUCHS Franz FUCHS Sabine FUERST Christine FUNKCornelia FURTLEHNER Isabella � GAEBLER Astrid GAISCH Franz GALLIMartin GAMPERL Marianne GANGL Karin GANGOLY Daniela GASSNERArnold A. GASSNER Erna GAUSTER Karin GEIEREGGER GuentherGFRERRER Eva GIMPEL Michaela GLASER Hildegard GLAUNINGER HelmutGLEHR Karl GLEICHWEIT Tanja GLETTLER Andreas GLETTLER 2 AndreasGNEIST Mathilde GOBLIRSCH Hans GOBOLD-SCHOEPFER GabrieleGOETSCHL Karl GOETSCHMAIER Eva GOETZL Marlies GOETZL WalterGOGG Roswitha GOLAUTSCHNIG Patricia GOSCH Josef GRABENHOFEREdith GRADWOHL Doris GRAF Werner GRAFONER Mathilde GRATZEJoachim GRATZER Johannes GREIMEL Franz GREINIX Martin GRIMM MariaGRINSCHGL Verena GROISS Katharina GROSS Ewald GROSSMANN KarlGROSZ Richard GROSZSCHEDL Franz GRUBER Andrea GRUBER AnitaGRUBER Walter GSCHWEITL Franz GSPURNING Ilse GUNGL HelmutGUTJAHR Hermine GUTMANN Theresia GUTTMANN Klaus �HAAS ChristophHABERER Peter HABERLE Cornelia HACKL Herbert HADOLT AndreaHAIDACHER Hermann HAIDACHER Sieglinde HAIDACHER Walter HALLEUX

Jörg HAMM Roswitha HAMMER Franz HANFSTINGL Elisabeth HARRANTGerlinde HARRER Andreas HARRER Petra HARTINGER Gerhard HASEWEND Doris HASIBA Christina HATZ Walter HATZL Annemarie HAUPTMANN Markus HAUPTMANN Michaela HAUSMANN Tanja HEHERVinzenz HEISSENBERGER Kurt HELD Heiko HERMANN Stefan HERZERWilhelm HIEBAUM DE BAUER Karin HIERZER Ingrid HINTEREGGER Eva MariaHINTEREGGER Katrin HIPPACHER Elisabeth HIPPACHER Ernst HIRMANNSandra HIRSCHMANN Josef HIRZER Mia-Ileana HOEFLECHNER BarbaraHOEFLER Herbert HOEGL Siegfried HOFER Josef HOFSTADLER AntonHOLD Gerfried HOLL Monika HOLZAPFEL Johann HORBATH Margit HORNERMarianne HUBER Brigitta HUBER Hermann HUBMANN Wilhelm HUDA MeikeHUDL Daniel HYDEN Herbert � IMENSEK Thomas INTHALER Sandra� JAINDL Gabriele JAMBREC Wolfgang JAMMERNEGG Wolfgang JANISCHMartina JANSKY Manfred JANTSCHER Albine JAUK Alexander JAUK JohannJAUK Margit JAUK Sonja JAUTZ Margit JEINDL Martin JENSEN Kjeld SenecaJONACHER Barbara �KAGER Daniela KAHLBACHER Monika KAHR AndreaKAHR Andreas KAHR Renate KAINER Maria KAISERFELD Hildegard

KALCHER Gerhard KALCHER Lisbeth KALCHERPeter KALSBERGER Uwe Thorsten KAMPER AndreasKAMPER Rosmarie KAMRAT Markus KAPFENSTEINER Andrea KARABELAS RenateKARNER Huberta KARNETSCHNIGG RudolfKASCHNIGG Karin KASPAREK Fiona KATSCHNIGKarin KAUDEL Helmut KAUFMANN I Gerhard KAUFMANN II Gerhard KAUFMANN Marion KERNEwald KERN Michael KERN Renate KESSLER BeateKETTL Dieter KIEFER Michael KIEFER Walter KIENREICH Armin KINDLHOFER Elisabeth KIRCHENGAST Christina KITTINGER DorisKLAMPFER Manfred KLASNIC Marianne KLEINDLGünter KLEINDL-POSCH Renate KLETZMAYR MariaKLINGSBIGEL Brigitte KLOECKL Dagmar KNAPPMaria KNAUHS Maria KNECHTL Evamaria KNEISSLElke KOCH Evelyn KOCH Gernot KOECK JohannKOESTL Johann KOETSCHLER Sigibert KOETZErnest KOFLER Daniela KOGLER Brigitte KOGLERDoris KOGLER Enrico KOGLER Gerald KOGLERWerner 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 KUNTNER RobertKUPFER Christian KUPSCH Heinz-Juergen KURZ Brigitte � LACKNER AlfredLACKNER Josef LADLER Stefan LAFER Ernst LAFER Susanne LAGNOL FranzLALLITSCH Nikolaus LAMBAUER Dietmar LAMMER Johannes LANG RosaLANG Thomas LANGREITER Detlev LANZ Josef LECHNER GabrieleLECHNER Johann LECHPAMMER Michaela LEDERER Bettina LEDOLTERTanja LEINDL Christine LEINDL Helmut LEINER Andrea LEITGEB EleonoreLEITNER Johanna LEITNER Rene LELLECK Alfred LENGER IrmgardLENGGER Friedrich LENHARD Elfriede LENHARDT Josef LERCHBACHERHans-Juergen LESNIK Katrin LEXNER Uwe LIND Elisabeth LIND SusanneLINDNER Gerhard LIPP Anita LOH Johann LOIPNER Wolfgang LOITZL Barbara LORENZER Michael LUBE Erika LUBER Heidemarie LUBI ChristophLUTTENBERGER Gerald �MACHER Karl MADNER Helene MAIER Rosemarie

EMPLOYEES ”THE MOST IMPORTANT ASSET OF OUR COMPANY“

W e thank our employees

most sincerely for their

great enthusiasm and high levels

of personal commitment to

ensuring the lasting success of

Raiffeisen-Landesbank in the

interests of its customers and its

owners.

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MAIERHOFER Claudia MAIR Markus MAITZ Gertrude MAITZ RoswithaMAJCAN Sabine Martina MALY Sabine MANDL Brigitte MANN GerhardMAROLD Kurt MARX Inge MARX Peter MATL Harald MATLSCHWEIGERMargret MATSCHINEGG Anneliese MATZHOLD Marianne MATZHOLD PeterMAURER Andreas MAURER Gerlinde MAURER Ingrid MAURER WalterMAUTHNER Gerd MAXONES Doris MAYER Gerhard MAYER Horst MAYERUrsula 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 UrbanMOTTER Herbert MUEHLBAUER Alexandra MUELLNER Gerald MUENZERChristian MURG Thomas MURTINGER Bernd ■ NAGER Maria NARATH Beatrix NEBEL Heinz NEMECEK Daniela NEUBAUER Sandra NEUHOLD KurtNIESNER Katharina NIGITZ Christa NINAUS Roswitha NOVAK Michaela ■OBERER Gabriele OBERHUBER Maria OBERTHALER Roswitha OFNER PetraORNIG Josef Gerhard ORTNER Wilhelm OSLAJ Andreas ■ PAAR GabrielePACHER Wolfgang PACK Matthias PAIERL AnneliesPAMSL Marianne PANZER Gabriele PATTERERJudith PAULITSCH Josef PAUSCH Johann PAYRICHEva PEIER Veronika PEINSITH Thomas PEINSITTDorothea PEISSL Jürgen PELZMANN Alois PENDLKarl PERL Meike PERSCHLER SabrinaPESSENHOFER Martina PETZL AugustPFANNER Iris PFEIFER Klaus PFNISS GregorPICCOLROVAZZI HLATKY Maria Gioia PICHLERCharlet PICHLER Christian PILGER Eva PINEGGERJohannes PINTHER Thomas PIRER IngridPIRSTINGER Herta PLANINSCHITSCH MonikaPLANKO Maria PLASCHKA Stefan PLEDL ElisabethPLEWA Gerald PLODER Thomas POBASCHNIGBettina POCK Rudolf PODMENIK ChristinePODMENIK Gerhard POELLINGER Richard POELTLElisabeth POETTLER Robert POKRIVKA AndreasPOLLHAMMER Christine POPIC Irena POSCHSiegfried POTZINGER Helmut PRANGL MargaretaPRANTER Evelyn PRATH Ulrike PRATSCH HaraldPREDOTA Irmgard PREININGER Ulrike PREITLERFranz PREM Johannes PRESSLER Werner MartinPRETTENHOFER Maria PUCHAS Klaus PUCHER Bettina PURRER IngridPUSTER Wilhelmine ■ QUAISER Hannes ■ RABL Sonja RADASCHITZ MartinRAHBERGER Gerhard RAINBACHER Christine RAINER Randolf RANEGGERGerlinde RANNAK Konrad RAPPOLD Franz RATTINGER Christa RAUSCHRegina RAUSCHENBERG Petra RECHL Klaudia RECHLING Waltraud REGULARolf Arno REICHART Andreas REICHMANN Eva-Maria REINISCH KarlREINISCH Maria REINTHALER Juergen REISCHER Gerhard REISENHOFERHerwig REISSMUELLER Doris REITER Franz REMLER Christa RESCH Barbara REUMUELLER Heinz RICHTER-KERNREICH Eva RIECK-DILSKYSabina RIEDRICH Franz RIEGER Elisabeth RIEGLER Hermann RIEGLERRegina RINNERGSCHWENTNER Ljilja RITTER Theresia ROGI Franz ROHLFINGGünther ROHRER Peter ROM Edeltraud ROSENBERGER Franz ROUBALMartin RUCKER Hans Peter RUDERER-KNOLLMAYR Petra ■ SACHS JohannSACKL Harald SAFRAN Eva-Maria SAGMEISTER Ulrike SAILER SylviaSAMEC-GATTER Ariane SAMMER Anton SATTLER Peter SAUER JohannesSAURER Gerald SCHAEFMANN Johannes SCHAFFER Kunibert SCHAFFERSusanne SCHAFLER Daniel SCHALLER Josef SCHANTL Daniela SCHEERPetra SCHEER Reinhold SCHEICHER Marianne SCHEIN Alexander SCHENKMartina SCHERF Karin SCHERZER Erna SCHETT Renate SCHEUCHERElisabeth SCHEUCHER Werner SCHEUERMANN Bernhard SCHIFFER

Elisabeth SCHIMPL Doris SCHINTLER-TSCHRIETER Petra SCHISTER HaraldSCHISTER Theresia SCHLAG Manuela SCHLAR Dietmar SCHLATZERChristian 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 SCHOTTERHelmut SCHRAMMEL Josef SCHREIBMAYER Rosemarie SCHROETTNERMichael SCHULZ Daniela SCHWABL Thomas SCHWARZ Gerfried SCHWARZGuenter SCHWARZ Kerstin SCHWARZENEGGER Renate SCHWEINZERErwin SCHWEINZGER Margit SCHWIMMER Sonja SCHWINDSACKL ErnestSEEBACHER Johann SEIDLER Monika SEINER Heidi SEUFZER RoderichSIDAK Gerald SILBERSCHNEIDER Heidrun SIMMERSTATTER Markus SIMOPetra SINGER Anton SIVETZ Evelyn SIXT Wolfgang SKALE Tatjana SKEDELJAnita SONNLEITNER Anton SORGER Ursula SPATH Rene SPITZER-GABRIELEva-Christine SPREITZHOFER Anna-Maria STADLER Franz STADLER RoswithaSTANGL Monika STEGER Helga STEGER Peter STEGH ElisabethSTEINWIDDER Bernd STEIRER Evelyn STELZER Rudolf STENGG Wolfgang

STOERI Silvia STOISER-NESTL DorisSTRACHWITZ Siegmund STRALLHOFER HerbertSTRANZ Cornelia STREIBL Peter STREICHERChristina STREIT Elisabeth STROBL ChristophSTROBL Erich STROBL Markus STROHMEIERSigrid STROHRIEGL Veronika STROMBERGERBrigitte SUDI Gerhard SUPPANSCHITZ OttoSUSCHNIGG Klaus SUTTNIGG 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 KlaudiusTIEFENGRUBER Walter TOTH Julius TRANTURAThomas TRAPPL Jenny TRAUSSNIG SandroTROESTER Siegfried TROHA ElisabethTRUMMER Alois TRUMMER Bettina TRUMMERChristine TRUMMER Claudia TRUMMERElisabeth TRUMMER Siegfried TSCHICK Harald

TSCHIKOF Stefan ■ UITZ Ingrid UNGER Anton UNGER GerhardUNTERWEGER Florian URAY Heinrich ■ VALLANT Gerhard VATERL ManuelaVEIT Bettina VEITSBERGER Christian VERONIG Bernd VOLLER Wilhelm■ WAGNER Gunther WAGNER Martina WAIDACHER Irmgard WALCH AnitaWALCHER Werner WALLNER Daniela WALLNER Marja Liisa WALLNER PatrickWALTERSDORFER Karin WEBER Astrid WEBER Christine WEBER JohannesWEBER Martin WEBERN Wilfried WEIGL Alexander WEIGL Beate WEINGRABER Werner WEINGRILL Michael WEINHANDL Gerhard WEINHANDLMaria WEINHOFER Werner WEISS Elke WEISS Heribert WEISSENSTEINERWalter WESENER Bernhard WIEDEMSCHECK Elfriede WIENER RudolfWIESER Edith WIESER Rosa-Maria WIESER Sabine WIESER Ulrike WIESNERJohann WILDBACHER Evelyn WINDISCH Josef WINKLER GerhardWINTERLEITNER Bernd WINTERLEITNER 2 Bernd WITEK Joerg WOHLESSER Johann WOLF Ingrid WUENSCHER Matthias WUNDER UrsulaWUNDERL Renate WURZINGER Marlene Anna WURZINGER Norbert ■ ZACHBettina ZACH Gabriele ZAUHAR Birgit ZAUNSCHIRM Ingrid ZECHNERGabriele ZECHNER Jasmine ZEHETLEITNER Thomas ZEHETNER MartinZERKOWITZ Alexander ZIERSCH Waltraud ZIMMERMANN Astrid ZISSERRoland ZNIVA Wolfgang ZOECH Martin ZOEHRER Anna ZOELZER MichaelZOERNER Peter ZOTTER Daniela ZUEGNER Ingrid

The number of our employees rose towards the end

of 2005 to 792. The ever increasing competition in the

financial services sector naturally led to increased

demands on our employees. The latter reflect the

image of our company and are an essential factor in

our success. These evolutions also place increased

demands on staff development, recruitment

and efficient administration. In the field of staff

development, further and advanced training played a

vital role in 2005. In addition, the optimisation of staff

procedures, the increased use of the internet in time-

recording as well as internet recruitment via the

Raiffeisen Employment Bureau were the focuses of our

attention in 2005.

Our thanks also go to our

employees’ council which,

in its activities on behalf of all our

employees, has always shown

concern for the needs of a

positive evolution for the

company as a whole.

The Managing Board

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REVIEW OF THE YEAR 2005

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REVIEW OF THE YEAR 2005

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RAIFFEISEN-LANDESBANK IN ITS79th YEAR OF OPERATION

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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 predo-

minantly made up of inter-bank deposits from

member banks. These inter-bank deposits rose by

EUR 28 million to EUR 2 billion.

Customer deposits amount to EUR 918 million and

break down into EUR 479 million in giro deposits and

EUR 439 million in Euro savings deposits. In the year

2005 debts evidenced by certificates amounted to

EUR 1.4 billion, up 9.4 % on the previous year.

As at 31 December 2005, the remaining inter-bank

deposits stood at EUR 1,032 million.

As at 31 December 2005 overall deposits had reached

an amount of almost EUR 5.3 billion.

Loans. At year-end 2005, the total amount loaned by

Raiffeisen-Landesbank Steiermark was EUR 3.6 billion.

Of that sum, “loans to credit institutions” amount to

EUR 1,385 million. The financing volume covering all

types of customer business now amounts to EUR 2.2

billion, with the lion’s share, EUR 1.6 billion, going to

trade and/or commercial customers. The lending to

private customers stands at EUR 147 million.

In the lease finance sector Raiffeisen-Landesbank

Steiermark was able to achieve finance provision of

EUR 319 million.

SOURCE OF FUNDSin EUR million

431

426

1,295

974

1,972

2004

439

479

1,417

1,032

1,944

2005

5,0985,311

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Private customers

Commercial customers

Agricultural financing(agricultural co-operatives etc.)

Leasing

Credit institutions

LOANSin EUR million

BUSINESS WITH TRADE/-COMMERCIAL CUSTOMERS

“STRONG PARTNER OF STYRIANBUSINESSES”

In the strategic alignment of its business with

trade/commercial customers, Raiffeisen-Landesbank

Steiermark AG concentrates on industry and major

customers in the institutional and public sectors.

The overall volume of financing in the commercial

customer business line rose by about EUR 178 million

(+7.6 %) to EUR 2.6 billion in 2005. Pleasing growth was

achieved above all with institutional customers and the

public sector.

Through tailor-made financing solutions and best

contacts for foreign business, we were able to extend

our market position in commercial customer business

and to position Raiffeisen-Landesbank Steiermark AG

as partner of Styrian industry. Within the context of our

integrated customer care, special products such as

structured financing, cash management solutions

security assessment were of particular significance

to us and were successfully placed before our

customers. In 2006 security assessment was

increased by around 19 %.

The market for corporate bonds continued to flourish.

Historical records were broken in 2005 both in the

number of transactions and overall volume.

The “Raiffeisen Business Talks” focussed on the

expanded home market of “Southern and Easter

Europe”, and the business lunch with the Croatian

Ambassador and the now traditional “Croatia Day”

were the highlights of the “Grazer Messe”, the Graz

Trade Fair.135

1,531

169

330

1,014

2004

147

1,558

167

319

1,385

2005

3,179

3,576

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PRIVATE AND COMMERCIALCUSTOMERS

“ADVISING AND NOT FIGHTING”

The private and commercial customer business of

Raiffeisen-Landesbank Steiermark is carried on

through eleven banks in Graz and one in Frohnleiten,

as well as the centres for asset advice, building and

homes and the new Raiffeisen UniCenter.

In the field of primary deposits there was a rise in

demand deposits of 10.9 % to EUR 148 million. Savings

deposits also increased by 4.6 % to reach EUR 432

million at year-end.

In all, primary deposits amounted to EUR 580 million,

representing a rise of 6.1 %.

Managed securities volumes rose by 16.6 %, redemp-

tion values for insurances by 15.8 % and building

society deposits by 4.2 %.

Overall revenue yield rose by 9.2 % to EUR 949 million.

Private financing also rose by 10.1 % to EUR 147

million. With the financing of commercial customers

there was a balance sheet effective financing volume

of EUR 265 million, up 9.3 % on year-end 2004. With

building society financing included, overall financing

provisions were at EUR 342 million.

HOLDINGS“A STRONG PARTNER”

For 2005 the book inventory of our holdings showed

EUR 626 million. This corresponds to an increase of

EUR 40 million, or 6.8 %. The essential changes to

holdings relate to capital increases by foreign banks in

Croatia, Hungary and Bosnia-Herzegovina.

The most significant part of the holdings of Raiffeisen-

Landesbank Steiermark is in the one-stop finance

business line. This includes above all the holdings in

Raiffeisen Zentralbank Österreich AG as well as the

majority holding (75 %) in Landes-Hypothekenbank

Steiermark AG. Together, the Raiffeisen Banking Group

and Landes-Hypothekenbank form by far the largest

banking group in Southern Austria.

Other significant holdings relate to tourism, trading

and service provision companies. Above all in the fruit

marketing sector, Raiffeisen-Landesbank Steiermark

also has substantial holdings in the Steirerfrucht

Betriebsgesellschaft mbH & Co. KG and the Obst Hofer

Handels GmbH.

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SERVICING RAIFFEISEN BANKS“ACHIEVING SUCCESS TOGETHER”

Among the core tasks of Raiffeisen-Landesbank is the

servicing of the Styrian Raiffeisen banks in marketing,

operational, organisational and strategic matters.

These services include the active support in strategic

and operational reorientation of banking and marketing

organisational management as well as assisting in the

introduction of new control instruments and marketing

concepts. In the sense of membership promotion for

the owners the range was constantly developed in

accordance with cooperative requirements to suit the

current needs of a modern banking and finance

company.

In the first half of 2005, the “Raiffeisen Depot-Check”

was developed, and received extremely positively both

by Raiffeisen banks and our customers. The second

half of the year was marked by the “Raiffeisen-

Pension”, and a major introduction event.

In the field of advanced and further training, in 2005

there were again a large number of character training

sessions. Two new seminars – “Recognising my limits

– overcoming my limits” and “Presenting myself” were

organised.

Another future-oriented focal point was the servicing

and further development of the internet presence of the

Raiffeisen Banking Group Styria. Cooperation with the

“evolaris” search platform was continued very

successfully with the implementation of five further

projects.

Another core task of Raiffeisen-Landesbank is provid-

ing advice and services to the Styrian Raiffeisen banks

in operational company control.

The range of services extends from carrying out

comprehensive operational analyses through the

implementation of medium-term corporate strategies

and assessment of particular locations to investment

calculations as the basis for future decisions.

Alongside the reporting carried out centrally as required

by law, for all Raiffeisen banks, in 2005 an entire series

of legal reporting initiatives was implemented.

At a federal level, preparations continued for Basle II

and for risk-related reporting both from a technical

and an EDP point of view.

In the year 2005, the division dealing with customer

balance sheet analysis analysed 14,369 balance

sheets from some 10,816 companies. In addition there

was a series of balance sheet and financial planning

discussions as a basis for investment decisions in the

commercial customer business line.

In the refinancing business line, in 2005 some 544

refinancing loans were granted for Raiffeisen banks

with a total volume of EUR 965 million. At the 2005 year

end, refinancing volumes of EUR 1.1 billion were out-

standing to Styrian Raiffeisen banks. This corresponds

to an increase of EUR 158.6 million or 16.6 %.

22

FOREIGN BUSINESS

“GO EAST”

In the export sector, from a federal point of view,

Styrian companies hold second position, and that is

reflected in the foreign business of Raiffeisen-Landes-

bank Steiermark. The volume of foreign payment

business rose by 18 % and for unit numbers there was

actually an increase of 22 %.

The increasing significance for the Styrian export

economy of the Asian economic area is to be seen in

the fact that 70 % of documentary business is with that

region. And in future the vital economic impulses of

China and India will continue, so the Raiffeisen

presence in Asia will be strengthened. Alongside sub-

sidiaries in Beijing and Singapore, Raiffeisen will have

six representations in the region.

Raiffeisen International also operates the leading

banking network in Central and Eastern Europe. 16 net-

work banks with a total of more than 2,400 subsidiaries

are bringing Austrian banking know-how to that region.

Raiffeisen-Landesbank Steiermark has direct holdings

in the network banks in Hungary, Croatia, Slovenia and

Bosnia-Herzegovina.

2005 saw a wide range of activities by the represen-

tation of the Hungarian Chamber of Trade and Industry,

as well as the Croatia-Austria Chamber of Trade. A

particular highlight was the two-day international

conference “Intermodal Transport in Southern Europe”

in Opatija, attended inter alia by senior representatives

of the EU and ministerial representatives from eight

countries.

TECHNICAL CENTRE ANDPAYMENT TRANSACTIONS

“FURTHER DEVELOPMENT ANDSECURITY”

In 2005, the Raiffeisen Banking Group Styria cele-

brated 30 years of the technical centre and electronic

data processing. The Raiffeisen technical centre looks

after more than 4,160 bank work stations and 1,070

self-service customer terminals, from automatic teller

machines to account statement printers.

Investments were made again last year on optimising

the existing network. Old components were replaced

by new high-performance apparatus, and in several

banks routing connections were modernised and

general routing speed within the data network

enhanced.

Technical know-how and experience is an advantage

not only to the Styrian Raiffeisen banks and Landes-

Hypothekenbank Steiermark AG but to more than 180

companies throughout Austria.

In the pervious year Internet payment traffic gained

considerable significance, the trend continuing in 2005.

Alongside user-friendliness, the level of security in this

field also played an absolutely vital role. The question

of security was met with a great many technical inno-

vations. In the Raiffeisen Banking Group Styria 25 regis-

tration points were established for digital signatures to

give ELBA Internet customers the greatest degree of

security.

In 2005, via Raiffeisen-Landesbank as a clearing

centre, 86.3 million inland and foreign payment trans-

actions were carried out (including EU payments). That

gives a daily average of around 345,000 transactions.