Vienna International Banking Industry News

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

Hypo Alpe Adria with First Profit since 2007

The Austrian bank returned to black figures after four years. A half-year profit of € 90.8m was achieved despite risk provisions of € 134.9m.

August 17, 2011

Erste Group not Interested in Polish Bank Millenium

The Austrian bank continues looking for opportunities to expand into Poland after it has ruled out an acquisition of Bank Millenium.

August 16, 2011

Hypo: New Charges against Former CEO Kulterer

The Carinthian bank’s former CEO and three other persons are accused of having caused a damage of € 5.5m.

August 12, 2011

BayernLB Demands Rescission of Hypo-Deal

The German bank has taken action against the employee fund which is accused of having misled the management about Hypo’s equity base.

August 10, 2011

Hypo Upper Austria Expects Stable Results

The Austrian regional bank achieved profit before taxes of € 16.6m in the first half of the year, up 1.2% year-on-year.

August 8, 2011

Greek Bonds Burden Kommunalkredit’s Results

The state-owned Austrian bank reported a significant decline in profits due to a write-off of Greek government bonds.

August 8, 2011

Erste Group Strives for Full Control over Romanian BCR

The Austrian bank does not want its Romanian subsidiary to be listed at the stock exchange although it was a condition for the privatization.

August 4, 2011

Significant Increase in Profit for Bank Austria

The Austrian subsidiary of UniCredit achieved a plus in net profit of 52% despite a negative one-off effect of € 100m from Greek government bonds.

August 4, 2011

Hypo Alpe Adria Sells Stake in Hypo Insurance

All of the Austrian bank’s 20% stake will be taken over by majority owner Grawe insurance.

August 4, 2011

Trend towards More Bonds in Corporate Financing

Companies will increasingly rely on the capital market as bank loans are becoming more expensive due to Basel III and stricter liquidity requirements.

August 3, 2011

Erste Group Planning New Branch Concept for Czech Republic

The Austrian bank’s Czech subsidiary is working on a modern concept which will be targeted at new customer groups.

August 3, 2011

Bank Austria Finances Portfolio of Apartment Houses in Vienna

The Austrian bank generates a stimulus for Vienna’s real estate market and finances 53 apartment houses with € 110m.

August 2, 2011

Hypo Alpe Adria Sells Off German Biogas Plants

The Austrian nationalized bank pulls out of the biogas sector. Sale of its plants in Austria is planned for the second half of 2011.

August 2, 2011

AutoBank with Improved Half-Year Results

The Austrian specialist bank increased new business volume by 4.2%. Stable growth was achieved in all areas.

August 1, 2011

Martin Schwedler Appointed CEO of Raiffeisen Investment in Moscow

The previous board member of RIAG will focus on expanding the Austrian bank’s presence in Russia’s growing M&A and ECM business.

August 1, 2011

Bawag Sells Stiefelkönig to Leder & Schuh

The Austrian shoe retail chain is taken over by its strongest competitor. The deal is subject to approval by the competition Authority.

July 29, 2011

Hypo Alpe Adria Sells Schlosshotel Velden

The Austrian bank signed a purchase agreement with Amisola Immobilien AG. Falkensteiner Michaeler Tourism Group will take over management of the hotel.

July 29, 2011

Erste Group Increased Net Profit from January to June

The Austrian bank’s results were burdened by bank taxes in Austria and Hungary. Net profit was up 5.2%, based on a solid operating result and lower risk costs.

July 29, 2011

Banks Expect Tightening of Credit Guidelines in 2012

Austrian banks’ lending policies did not change in the second quarter of 2011. For two years already, no tightening of lending conditions has been observed.

July 28, 2011

Erste Bank Fixed the Takeover of Intermarket Bank

Erste Bank took over 56% in Austria’s largest factoring bank from the Polish subsidiary of Commerzbank and will acquire another 10% from Coface.

July 28, 2011

Kärntner Sparkasse Starts Withdrawal from Italy

The Carinthian regional bank is closing down two branches as a consequence of the economic crisis and new capital requirements.

July 26, 2011

Credit Costs to Rise in the Wake of Basel III

The new regulatory requirements are expected to increase the cost of credits and to reduce the Austrian banks’ profitability.

July 20, 2011

Hypo Alpe Adria Opens New Branches in Italy

The Carinthian bank is expanding its business in the neighboring country although the subsidiary will soon be in the hands of a new owner.

July 19, 2011

RBI’s Direct Bank Zuno Starts Operations in the Czech Republic

Following the launch in Slovakia at the end of 2010, Raiffeisen’s direct bank now takes up business in a second country.

July 19, 2011

Stress Test: Erste Group and Raiffeisen Passed, Volksbank Failed

Volksbanken Group is the only Austrian bank that failed the stress test. Taking into account the measures that are currently being implemented, the core tier I ratio would be above the benchmark.

July 15, 2011

Meinl Bank in the Red

Meinl Bank surprisingly presented results on Thursday. The institute slid into the red, while the Group was able to reduce losses.

July 15, 2011

Erste Group Provided Financing for Hospital in Warsaw

The € 32m acquisition financing is the first private hospital financing in CEE of that size which has been closed by Erste Group and also a first in Poland for the bank.

July 15, 2011

Former Cheuvreux Duo Berger and Reisenberger to Work for Wiener Privatbank

Former Cheuvreux analysts Alfred Reisenberger and Eduard Berger join Wiener Privatbank as of August 1.

July 15, 2011

VBAG and Sberbank Agree on Sale of VBI

After several months of negotiations the two banks have agreed on the main conditions of the sale of Volksbank International. The deal will be closed by the end of this year.

July 15, 2011

Volksbanken Group Speeds Up Sale of VBI

In the face of the looming negative result of the stress test, the Austrian bank is trying to conclude negotiations with Russian Sberbank.

July 13, 2011

Slow Recovery in Banks’ Lending Activity

Corporate loans recovered faster than loans to private households. Interest rates have increased only slightly since April 2010.

July 11, 2011

Austrian Banks React to ECB’s Interest Rate Decision

The Austria banks quickly passed on the interest rate hike to their customers. Christoph Leitl regards the decision as an impediment for budgetary consolidation.

July 8, 2011

European Stress Test Results to Be Published on July 15

The test performance of 91 participating banks will be available next week. According to Moody’s, Austrian Volksbanken AG is at risk of failing the test.

July 8, 2011

OTP Bank Shows Interest in Volksbank International

The Austrian Volksbanken AG found a second potential buyer for its Eastern European subsidiary. The Hungarian OTP bank wants to expand into the markets where VBI has a presence.

July 7, 2011

Sale of VBI to Be Signed in July

The Austrian Volksbanken Group and Sberbank have come close to an agreement on the sale of the Eastern European bank. The transaction price will be € 700m.

July 5, 2011

RBI Hit by Bankruptcy of Saudi Arabian Company

The Austrian bank has problems with its credit business in Saudi Arabia. “An amount in the low hundreds of millions” is at risk.

July 4, 2011

Successful Start for RBI’s Direct Bank Zuno in Slovakia

18,000 Slovak customers have deposited a total amount of € 125m in the first six months since the bank entered the market in December 2010.

June 30, 2011

RBI: Acquisition of Polbank Stake Advancing

The Austrian bank has received anti-trust approval of the deal. Closing and operational merger are expected in Q4/2011 or Q1/2012.

June 30, 2011

RLB OÖ to Sell Its Stake in Polytec

The Upper Austrian regional bank will sell its shares in the component supplier for approximately € 34m.

June 29, 2011

Volksbanken Group to Sell Stake in RZB

Österreichische Volksbanken-AG Group (VBAG) will sell its shares in Raiffeisen Zentralbank for almost € 500m. The redemption of state capital and the sale of VBI have been delayed.

June 28, 2011

Profit Situation of Austrian Banks Improved Significantly

The banks recorded a positive development in the first quarter. However, net profits of the full year will fall as a result of the newly introduced bank tax.

June 27, 2011

Erste Group: Delayed Redemption of State Capital

The Austrian bank will not repay the € 1.2bn of participation capital before the end of the month, probably due to the ongoing stress test.

June 24, 2011

Austrian Financial Sector Stable – Remaining Challenges in Particular Business Segments

Stress test results show Austria’s banks to be more resistant to risks than in 2010 – Boosting equity remains on the agenda nevertheless.

June 21, 2011

Hypo Group: End of the First Round in the Bidding Process

Today, Friday, was the closing date for the submission of tenders for Hypo Group’s Austrian business. The sale process is expected to take several months.

June 17, 2011

Atrium and Meinl Bank Agree to Stop All Legal Proceedings

The American-Israeli real estate fund and the Austrian bank reached a settlement agreement on the dismissal of all claims between them.

June 17, 2011

Raiffeisen Expanding Its M&A Business in Russia

The Austrian bank group is planning a joint venture between RBI and RIAG in order to put the investment banking in Moscow on a new footing.

June 16, 2011

Bawag-CEO: “No Exit of Cerberus in 2012”

After five years, a sale of the Austrian bank would become possible next year. The shoe retailer Stiefelkönig will be sold this summer.

June 15, 2011

Stagnating Level of New Bank Lending

Loan development in the first quarter: increase in long-term lending, but decline in total corporate lending volume.

June 10, 2011

RBI Could Raise More Than € 3bn

The Austrian bank prepares for issuing up to 97.75 million new shares. The company has not yet set a timetable for redemption of capital injected by the state.

June 8, 2011

Bankers' Bonuses Back to Pre-Crisis Level

Bonus payments of Austrian banks have recovered from the effects of the financial crisis. Rules for the payout have become stricter.

June 7, 2011