Volksbanken Romania posts €170 mln loss in 2012

Deals

Oesterreichische Volksbanken AG’s Romanian banking business made a €170 million ($221 million) loss last year, it said, highlighting the challenge the Austrian lender faces to sell the hived-off unit. Volksbanken needs to sell its 51% stake in its deconsolidated Romania business - which it has entirely written down - by the end of 2015, and sell its 50% stake in VB-Leasing International by the end of 2014. The Romanian loss under local accounting standards was bigger than expected given risk provisions in tough markets, the bank said. But the unit’s equity ratio remained at 15.6% of risk-weighted assets and deposits rose 40%. It said it aimed for deposits in Romania to grow another 30%, or by €200 million, in 2013 as it worked to reduce losses and keep a “reasonable” level of equity there.

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ

Industry