Vienna International Banking Industry News

Read the latest headlines about developments in the international banking industry in Vienna and Austria

Austrian Bank Aids: Losses Total € 3.4bn

The nationalized banks are a substantial risk factor for Austria´s budget. Losses may increase further.

July 23, 2012

Slovakia: Bank Tax Should Reach € 1.0bn

The Slovakian government raised the bank tax up to 0.4% on deposits. Once the tax intake totals € 1.0bn, the tax should be abolished.

July 21, 2012

RBI: Bad Development in Hungary

Herbert Stepic, CEO of Raiffeisen Bank International expects that the development of non-performing loans is stable this year.

July 21, 2012

Slovenia in Financial Distress

In order to prevent becoming a bail-out candidate, the Slovenian government aims to resolve a „debt brake“. It turns out that this goal is highly uncertain.

July 21, 2012

Hypo Group: „As Little Bank Aids as Possible“

Hypo Group Alpe Adria´s CEO Gottwald is unhappy with reports that the state-owned bank may need further bank aids.

July 20, 2012

Austerity Program at RBI

Raiffeisen Bank International´s CEO Herbert Stepic is against a capital increase. The market conditions would be unfavorable.

July 20, 2012

Fear of Capital Shortfall at Austrian Banks

The Austrian problem banks Hypo Group and KA Finanz may need further capital injections.

July 19, 2012

Takeover of Croatian Aluflex Failed

The Austrian Hypo Group Alpe Adria will not sell the Croatian aluminum group to the Swiss MTC (Montana Tech Components).

July 19, 2012

Slight Growth in Ukrainian Financial Industry, Uncertainty Remains

According to Austrian RCB (Raiffeisen Centrobank), the lending activity remains subdued amid looming economic uncertainty. Deposit growth resumed in June both in corporate and retail segments.

July 19, 2012

Slovenian Banking Industry „One of the most Burdened in CEE Region“

About 11.5% of total loans are non-performing. Slovenia is one of the few countries suffering a crunch, RCB states.

July 18, 2012

Erste Group Enters Bulgarian Property Market

Todor Alexandrov Offices in Sofia developed by Erste Group Immorent AG are ready for occupation.

July 18, 2012

Koren will be new CEO of VBAG

Starting from 1 september 2012, Koren becomes the new head of VBAG´s management board. New member of the board Rainer Borns should represent a „strong connecting link to regional Volksbanks“.

July 17, 2012

VBAG Buys Back € 236m Hybrid Bonds

The Buyback program generates book profits of € 130m.

July 17, 2012

Further Increase in Austrian National Debt

Due to the European debt crisis, Austria´s public debt level will increase from 72.2% to 74.7% of the country´s GDP.

July 16, 2012

Hungary: IMF Talks Begin Next Week

The financially stricken country seeks a second bailout by IMF. Hungary negotiates over a loan sized € 15bn.

July 14, 2012

Bank Austria: Major Investment at Russian Subsidiary

UniCredit Group increases the equity base of the Russian subsidiary.

July 14, 2012

Consolidation in CESEE Banking Industry Ahead

The Austrian Central Bank (OeNB) expects a wave of takeovers in the banking industry in Central, Eastern and Southeastern Europe. Many banking groups will withdraw from there, OeNB says.

July 13, 2012

Sberbank to Provide € 300m for VBI

The Russian Sberbank intends to inject € 300m into the Austrian VBI (Volksbank International). Growth into the CEE region should be promoted.

July 13, 2012

VBAG-Restructuring Proves Problematic

In March, the Austrian VBAG Banking Group became partly nationalized. A new CEO has not been found yet.

July 12, 2012

Slovenia Remains in Recession

According to estimations, the recession in Slovenia will sharpen this year. A turnaround is expected in 2013. The banking sector is an enormous burden for the Souteastern European country.

July 12, 2012

Austrian Banks Fulfilled EBA Requirements

The European Banking Authority published today an overview report on the implementation of the capital exercise. The vast majority of the banks in the sample meet the required ratio of 9% Core Tier 1 (CT1).

July 11, 2012

Big Exposure in Foreign Currency Loans

In Austria, domestic banks have outstanding foreign currency loans of € 51bn. In CESEE countries, the exposure comes at € 130bn.

July 10, 2012

Performance of Austrian Banks Remarkably Down

Austria seems to be significantly „overbanked“: Austrian banks only achieve a 0.1% yield on the capital employed.

July 9, 2012

OeNB Calls Austrian Banks to Improve Equity Base

Presentation of the 23rd Financial Stability Report of OeNB (Austrian Central Bank): Austrian Financial System Influenced by Tensions in the International Financial Markets.

July 9, 2012

Southeastern Europe Faces Recession

According to the Vienna Institute for International Economic Studies (WIIW), Southeastern Europe is the weak point among European emerging countries.

July 7, 2012

Bank Austria named Best Bank in Austria

The distinguished international financial magazine EUROMONEY has named Bank Austria the Best Bank in Austria in its Awards for Excellence 2012.

July 7, 2012

Euromoney Awards RBI as Best Regional Bank in CEE

Austrian Raiffeisen Bank International (RBI) receives award for the seventh time. For RBI, it is already the third award for RBI as "Best Bank" in CEE in 2012.

July 6, 2012

Reorganization at UniCredit

The Italian banking group plans to dezentralize its structure. Bank Austria as CESEE hub is affected.

July 5, 2012

CESEE: Poland and Turkey are Hot Spots

Erste Economic Sentiment Indicator CEE: stock market expectations weaker, but still ahead of Eurozone. Turkey and Poland remain the preferred investment regions.

July 4, 2012

Austrian Banks in CESEE „Too Ambitious“

For the IMF, Austria´s economy is „well situated“. The austerity package is „adequate“.

July 2, 2012

Massive Austerity Cuts at Porr

The third-biggest Austrian construction company examines its cost structure. First effects should be visible still in 2012.

July 2, 2012

Volksbanken Sector to Become Merged

After months of negotiations, the merger between VBAG and the 52 Volksbanken is resolved. The merger was the prerequisite for getting bank aids.

June 30, 2012

Real Estate Crisis in the Balkans Has Deepened

Due to the economic crisis in Southeastern Europe, real estate prices are still falling. Since 2008, prices fell by up to 50%.

June 28, 2012

WIFO Wants Unlimited Firewall

According to the Austrian Institute of Economic Research, the firewall must be big enough in order to make speculation against the euro unattractive.

June 28, 2012

VIG Completed Polisa Life Acquisition in Poland

The Vienna Insurance Group AG is the new owner of the Polish life insurance company Towarzystwo Ubezpieczeń na Życie "POLISA-ŻYCIE" S.A. With this transaction, the VIG has acquired about 92 percent of the life insurer.

June 28, 2012

Erste Group Lays Cornerstore for New Headquarters

In 2016, Austrian Erste Group will get a new headquarters. 20 different offices will move to the new central headquarters at the Viennese Central Station.

June 27, 2012

Stable Corporate Lending at RBI

Raiffeisen Bank International : „No bottleneck supplying the domestic economy with liquidity.“

June 27, 2012

Credit Crunch in CESEE?

Anglo-Saxon banks and funds are most aggressive in deleveraging; Austrian bank are not relying on funding from countries in hotspots of deleveraging.

June 27, 2012

Bank Austria Wohnbaubank: Decrease in Profit

The operating performance of Bank Austria Wohnbaubank went up in the 2011 financial year. Due to the bank tax, net income decreased.

June 27, 2012

CESEE: „Nothing Has Changed“

Walter Rothensteiner, CEO of Austrian Raiffeisen Zentralbank, is convinced of the success of the expansion into the CESEE region.

June 26, 2012

Rothensteiner Succeeds Konrad

Walter Rothensteiner becomes general attorney of the Austrian Raiffeisen sector. Christian Konrad resigned.

June 25, 2012

„The end of the Euro would mean Europe´s Explosion“

Ewald Nowotny, governor of the Austrian Central Bank (OeNB) reaffirms that Europe needs the Euro.

June 25, 2012

Treichl: „Europe Does Not Need the Euro“

Andreas Treichl, CEO of Austrian Erste Group thinks that the European Union would work very well without the common currency. A common army would be more important.

June 25, 2012

„ÖIAG Should Manage Banking Interests“

Austria´s Finance Minister Maria Fekter wants to upgrade the Austrian state holding ÖIAG.

June 23, 2012

NPL of € 100bn in CEE?

The chairman oft he Viennese Chamber of Labor Werner Muhm asserts that Austrian banks hold non-perfoming loans in CEE ountries. Austrian banks rejected Muhm´s statement.

June 23, 2012

Nowotny: „Bank Aids Rescue Economy“

The governor of the Austrian Central Bank OeNB underlines the necessity of the bail-out of Spanish banks.

June 23, 2012

„We will Examine Every Single Shareholding“

Raiffeisenlandesbank Upper Austria´s new CEO Heinrich Schaller announced in an interview with „Wirtschaftsblatt“ that the banking group´s efficiency should be enhanced.

June 22, 2012

Leipnik-Lundenburger May Go Public

The new CEO of Raiffeisen Holding Erwin Hameseder considers privatizing the food company. There would be other privatization candidates in the renewable energy sector.

June 22, 2012

Government´s Plans on Bank Insolvency Law Failed

The Austrian government initially planned to initiate a bank insolvency law in order to liquidate financially stricken banks without major difficulties. Now, the plan has failed.

June 22, 2012

Erste Pursues Downsizing Strategy in Romania

Last month, the Austrian Erste Group closes about 25 bank branches of BCR in Romania.

June 21, 2012