EANS-Adhoc: Österreichische Volksbanken-Aktiengesellschaft / Reorganisation of the Association of Volksbanks

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announcement.
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other
02.10.2014

Subtitle: Splitting up VBAG will ensure the future of Volksbanks
under new structures and will avoid any further burden on taxpayers

The Executive Board of Österreichische Volksbanken-AG (VBAG) decided
in principle today to restructure VBAG. Those assets and tasks that
are currently allocated to VBAG's non-core business areas are to be
fully liquidated. Assets and service units belonging to the core
business, together with all tasks undertaken by VBAG in its capacity
as the central organisation of the Association of Volksbanks, are to
be merged into a new top institution of the Association.

VBAG's objective is to deal swiftly with all remaining transactions
that are not part of the core business, to meet its liabilities to
creditors on the relevant maturity dates and to avoid any additional
burden on taxpayers.

The concrete plan together with the relevant legal aspects will be
worked out in more detail over the coming weeks. Final implementation
will require official and supervisory approval.

New structure for Volksbanks A meeting of all cooperative bank
members of the Association of Volksbanks took place today; there was
a large majority in favour of implementing a fundamental restructure
and accepting the "9+3" structure model with more than 95%. Small and
medium-sized banks will merge together to form nine strong regional
banks that will cooperate closely with one another in future. These
will be augmented by three specialist institutions.

The purpose of this package of measures is to significantly
strengthen the profitability of Austrian Volksbanken and to make it
possible for them to raise funds on the capital markets.

Further inquiry note:
Petra Roth
Österreichische Volksbanken-Aktiengesellschaft
Tel.: 0664 6129223
Mail: petra.roth@volksbank.com

end of announcement euro adhoc
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issuer: Österreichische Volksbanken-Aktiengesellschaft
Kolingasse 14-16
A-1090 Wien
phone: +43 0 50 4004-0
WWW: www.volksbank.com
sector: Banking
ISIN: AT0000755665
indexes: Standard Market Auction
stockmarkets: Regulated free trade: Wien, stock market: Prague Stock Exchange
language: English