Erste Group: Massive Write-Downs in Romania

Professional ServicesBanks ♦ Published: January 15, 2013; 10:55 ♦ (Vindobona)

The Austrian banking group reduces goodwill by € 300 million.

Erste Group: Massive Write-Downs in Romania / Picture: © BCR Banca Comercială Română

The regular annual impairment tests for goodwill carried on Erste Group’s balance sheet have resulted in a write down requirement mainly on goodwill associated with its Romanian subsidiary, BCR, but also other participations in the total amount of about € 300 million (pre-tax). This is due to higher market risk premiums resulting in rising discount rates employed in these impairment…