Shareholders of Österreichische Volksbanken-Aktiengesellschaft (VBAG) resolved unanimously at today's Annual General Meeting to split up VBAG and convert it into a wind-down company. The part of the business that functions as a central organisation and central institution will be transferred to Volksbank Wien-Baden AG, while the "remainder of VBAG" will continue to operate as a wind-down company under the name immigon portfolioabbau ag in accordance with section 162 of the Federal Act on the Recovery and Resolution of Banks (BaSAG).

To enable the split, the Annual General Meeting has resolved to carry out a simplified capital reduction at VBAG, to cover accumulated losses and losses carried forward from previous years with available capital. In concrete terms, this means that VBAG's subscribed capital will be reduced by 96.65% from around euro 577 million to approximately euro 19 million. The entire participation capital issued by VBAG will also be reduced by the same ratio.

The reorganisation of the Association of Volksbanks, the division of VBAG and the associated transfer of the spun-off part of the business to Volksbank Wien-Baden AG are currently being examined and remain subject to approval by the banking regulator, the European Commission and other authorities and institutions.

VBAG's CEO, Stephan Koren, says: "I'd like to thank the owners for approving the division of VBAG, as this is a key part of the creation of the new Association of Volksbanks. This will provide the association with a good basis for successfully overcoming future challenges in the long term."

The legal split-up of VBAG, the surrender of VBAG's banking licence and VBAG's departure from the joint liability scheme are scheduled for 4 July.

For queries, please contact:
Petra Roth
Tel.: +43 504004-3838
Mobile: 0664 6129223
E-mail: petra.roth@volksbank.com

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