Oesterreichische Volksbanken : VBAG Group reduced total assets by a further euro 5 billion

- VBAG Group reports after-tax result of euro -230 million as of 30 september
- Wind-down measures reduce total assets by a further euro 5 billion to euro 15.9 billion
- VB Holding Credit Institutions Group: common equity tier 1 capital ratio 10.92%, equity ratio 18.03%
- Association of Volksbanks: common equity tier 1 capital ratio 11.48%, equity ratio 16.02%

Restructuring of VBAG Group proceeded smoothly in the first nine months of 2014. Thanks to wind-down measures, total assets were reduced in this period by a further euro 5 billion to euro 15.9 billion (31 December 2013: euro 20.9 billion). Capital ratios of VB Holding Credit Institutions Group and Association of Volksbanks are well above the regulatory requirements.

Details to the consolidated result for the first three quarters of 2014:

The result before taxes amounted to euro -197 million, while the consolidated result after taxes and minority interest totalled euro -230 million.

Net interest income amounted to euro 161 million in the first three quarters of 2014, up by euro 10 million on the same period in the previous year.

Risk provisions came to euro -42 million, an improvement of euro 8 million on the corresponding period of the previous year. This is largely attributable to the winding down of non-core loans as part of the restructuring and to the lower need for impairments as a result.

Net fee and commission income in the reporting period totalled euro 15 million, down by euro 12 million in comparison to the previous period. This was due primarily to wind-down measures in non-core areas.

Net trading income is up on the previous period (1-9/2013: euro -2 million). Net trading income in the reporting period totalled euro 26 million, with the increase on the previous year down to non-recurring effects resulting from issues being repurchased.

General administrative expenses remained practically unchanged on the previous year at euro 195 million (1-9/2013: euro 193 million). The headcount declined by 376 compared to the end of 2013 and now totals 1,477 employees, 427 of whom are employed outside Austria. The sales of the VB Leasing International companies in Poland and Romania and of Volksbank Malta in September 2014 pushed the number of staff employed outside Austria down by 323.

Capital ratios for the first three quarters of 2014

Own funds of the VB Holding Credit Institutions Group as defined by banking law amounted to euro 1.74 billion as of 30 September 2014. The common equity tier 1 capital ratio based on total risk was 10.92% and the tier 1 capital ratio was also 10.92%. The equity ratio amounted to 18.03%.

Own funds of the Association of Volksbanks as defined by banking law amounted to euro 3.99 billion as of 30 September 2014. The common equity tier 1 capital ratio based on total risk was 11.48% and the tier 1 capital ratio was also 11.48%. The equity ratio amounted to 16.02%.

Please find the Interim Management Statement under: http://en.volksbank.com/investor_relations/reports/business_year_2014

For further information, contact:
Petra Roth
Österreichische Volksbanken-Aktiengesellschaft
Tel.: [phone]
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