Strategic management process

Raiffeisen Switzerland's Executive Board and Board of Directors regularly analyse the internal and external situation and identify any changes in the assumptions underlying the strategy. They use the findings from these analyses to determine the strategic priorities for the next three years. The strategic approaches are broken down into measurable targets and monitored on an ongoing basis. Raiffeisen has long used a balanced scorecard to manage target achievement. This tool tracks financial targets as well as client and employee parameters, providing a comprehensive view of strategic objectives we have achieved. As a cooperative, Raiffeisen's overarching strategic focus is not on maximising profit but on its commitment to its members.

Extract from the balanced scorecard for the Raiffeisen Group

Target value

2015 actual value

2016 actual value

2017 actual value

2018 target value*

Loans to clients (change in %)

5,0

4,2

4,1

4,0

Client deposits (change in %)

6,1

5,3

3,7

4,5

Total portfolio value, excluding own medium-term notes (change in %)

10,2

4,0

0,7**

10,0

Gross new provisions for value adjustments, loan losses and loan loss provisions as a percentage of loans (in %)

0,04

0,04

0,04

< 0,15

Cost-income ratio (in %)

62,6

63,9

60,8

< 61,0

Turnover of key persons (in %)***

5,4

2,0

1,0

< 7,0

* According to the multi-year plan.

** Including one-time effects (e.g., 2017 sale of Notenstein La Roche Private Bank Ltd’s Eastern European business).

*** Only with top management as of 2016.