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„I´m Glad That It Is Over“

Published: May 15, 2012; 16:16 · (Vindobona)

Andreas Treichl, CEO of Erste Group had to present the first annual loss to the shareholders since its IPO in 1997.

„I´m Glad That It Is Over“ / Picture: © Vindobona.org

At the annual general meeting of Erste Group, CEO Andreas Treichl expressed his regret. For core shareholders, the year 2011 was a “bitter pill”, as there was no dividend. “I am really sorry. This is not advantage to you. But at least you know it.” Treichl said. About 2,000 shareholders attended the meeting.

Last year, Erste Group had to record losses of € 719m. “I am glad that it is over.” the executive said. Due to write-offs of credit default swaps and Hungarian and Romanian non-performing loans, the third quarter showed write-downs of € 1.6bn. The fourth quarter of 2011 and the first quarter of 2012 were positive again, however.

“We will work very hard that something like the third quarter will not happen again.” Treichl assured. “The result of last year is not in line with the standards of Erste Group.” The CEO emphasized that Erste Group could record extraordinary profits of € 410m due to the buy-back of hybrids.

As the equity of the Sparkassen sector, must not be credited to Erste Group´s equity anmore, Treichl wants to reduce assets. The equity capital of the Sparkassen sector reaches about € 1.5bn. Erste Group aims to prevent a capital increase.

The top of the supervisory board will be changed. Heinz Kessler resigns as chairman of the board. The former rector of Vienna University Georg Winckler is said to become his successor. The number of supervisory board members should be cut from 12 to 10.

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