Volksbank, sixth local bank, put up for sale

Volksbank Romania, the sixth largest bank on the Romanian market by assets, which stand at 4.8 billion euros, could change hands over the next few months, after the management of Austrian group Oesterreichische Volksbanken-AG decided in mid-week to drop retail operations on markets in the region.

Following this restructuring, Volksbank-AG, which last year resorted to the aid of the Austrian government to deal with the massive losses it was accumulating, is set to focus exclusively on corporate banking in Austria and adjacent markets. The separation of the business will be done by selling Volksbank International - a group that holds and coordinates subsidiaries on five regional markets, Romania included - and Volksbank Leasing International, also present on the Romanian market. Volksbank Romania alone contributes around 10% of the overall assets of the Volksbank AG group.
"The necessary steps, which will be taken over the next few months, will be assisted by the mandated consultants and could end with the sale of these subsidiaries," Volksbank-AG group announced on Tuesday evening, at the end of a meeting of the management board. Volksbank Romania representatives did not comment on the information.
Volksbank International holds operations in Romania, the Czech Republic, Hungary, Slovakia and Croatia, with 13.7 billion euros in overall assets at the end of September. In the first nine months of the year the group posted a net profit of just 21 million euros, amid major spending on problematic loans.