Österreichische Volksbanken-Aktiengesellschaft
EANS-Adhoc: Österreichische Volksbanken-Aktiengesellschaft
anticipated loss in
2011 - information on planned de-merger and on measures to strengthen
capitalization
-------------------------------------------------------------------------------- ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Company Information 13.10.2011 Since last year, Oesterreichische Volksbanken-Aktiengesellschaft (VBAG) has focused on the redesign of its business model and has evaluated strategic options. In particular, the major deterioration of the market environment for banks, the severe crisis on international financial markets as well as extraordinary impairment requirements on country risks, on participations, and from the sale of participations are expected to significantly affect VBAG´s results as well as its planned measures: Annual loss (according to guidance) in the VBAG single entity financial statements is expected to amount to approximately EUR 900 million (+/- EUR 150 million depending on the development of the markets. We expect a loss ranging from EUR 500 million to EUR 750 million on the consolidated group level (IFRS). The main drivers are significant write-downs in the amount of EUR 700 million on the book value of the participations in Investkredit Bank AG and Volksbank Romania S.A. in the single entity accounts of VBAG. The planned transfer of the banking business of Österreichische Volksbanken-Aktiengesellschaft to Investkredit Bank AG by way of de-merger will not take place this year. Currently no repayment of EUR 300 million participation capital held by the Republic of Austria. Despite of the expected loss, capital ratios according to pillar I are clearly exceeding regulatory requirements. In addition, VBAG Group strengthened capital ratios through the sale of Volksbank International to Sberbank, resulting in an expected increase of the core capital ratio to 10.4% and a rise of the equity ratio to 13.7% by year end 2011. Currently the board of directors and the core shareholders of VBAG are discussing measures to strengthen VBAG´s capitalization. Part of these discussions is the modification of the Schultze-Delitzsch Genossenschaftsverbund in the form of a cooperation under Article 3 of the directive 2006/48/EC (part of the European application of Basel II) or the Article 9 of the CCR I draft (Capital Requirements Regulation I, which is the directly applicable regulatory part of the Basel III execution on the European level). A resolution to implement such modification was adopted today. Stock exchange listed issues of participation capital issued by Österreichische Volksbanken-Aktiengesellschaft: ISIN: AT0000755665 Österreichische Volksbanken-AG Partizipationsscheine XS0359924643 EUR 500,000,000 Perpetual Non Cumulative Participation Capital Certificates The five biggest listed issues of Österreichische Volksbanken-Aktiengesellschaft in terms of issue volume: ISIN: XS0451759012 XS0417722393 XS0412533399 XS0271095357 AT000B053442 The issues of Österreichische Volksbanken-Aktiengesellschaft are admitted on the following stock exchanges: Second Regulated market of Wiener Börse AG Official trading of Wiener Börse AG EUWAX segment of Baden-Württembergische Wertpapierbörse Regulated market of Baden-Württembergische Wertpapierbörse Regulated market of the Prague Stock Exchange Regulated market of the Luxembourg Stock Exchange Open Market of Berlin Stock Exchange Open Market of Stuttgart Stock Exchange Open Market of Frankfurt Stock Exchange Further inquiry note: Ansprechpartner: Walter Gröblinger Tel.: +43/ (0) 50 4004-0 E-Mail: walter.groeblinger@volksbank.com end of announcement euro adhoc -------------------------------------------------------------------------------- issuer: Österreichische Volksbanken-Aktiengesellschaft Kolingasse 19 A-1090 Wien phone: +43 0 50 4004-0 WWW: www.volksbank.com sector: Banking ISIN: AT0000755665 indexes: Standard Market Auction stockmarkets: stock market: Prague Stock Exchange, official market: Wien language: English