The bank saw the latest challenges as an opportunity and exceeded its targets for 2020 despite adverse circumstances, contrary to the general market environment.
Secure energy supply
The volume of new business in the area of infrastructure and energy financing rose by 11 percent to EUR 1.1 billion, communal credit confirmed preliminary figures on Wednesday. Around half of the financing volume comprised the Energy & Environment segment, 40 percent related to communication & digitization and 9 percent to traffic / transport.
This reflects the increased need for a secure energy supply and a high-performance digital infrastructure caused by Covid, the bank said. Geographically, the business across the EU and associated EU states is broadly based.
Strong plus in the operating result
The bank was involved in the financing of water infrastructure, photovoltaic systems, wind and solar parks, broadband projects and financing in the health sector. 603 million euros of the new business were placed with international investors.
According to the final figures, the operating result (annual result before taxes, excluding credit risk and valuation results) rose by 43 percent to around EUR 48 million. The annual result after taxes was 36 million euros, 23 percent above the previous year’s figure.
Increasing relevance of infrastructure
The interest result rose by 32 percent to 77 million euros, the commission income by 15 percent to 29 million euros. The non-performing loan ratio (NPL) has remained constant at 0.0 percent since privatization in 2015. The core capital ratio was 20.3 percent at the end of the year and the total capital ratio was 23.2 percent.
As a result of the corona pandemic and adherence to the climate targets, the need for sustainable and intact infrastructure is becoming more relevant, according to the outlook. In addition to the aftermath of the corona virus, climate change is and will remain one of the greatest global challenges.
Kommunalkredit Austria is the “healthy” part of the old Kommunalkredit, which had to be split up at the end of 2008 after the emergency nationalization in the financial crisis. The dismantling part lies in the continued state KA Finanz.