Group – divisions

On 15 December 2011, the Österreichischen Volksbanken-Aktiengesellschaft (VBAG) Supervisory Board passed a resolution for the internal reorganisation of the divisions. Organisationally, the bank is divided into four divisions.

“Executive Departments and Services” are bundled in division 1 and report directly to the Chief Executive Officer. This division comprises: Shareholder Relations, Auditing, Compliance Office, Marketing & Communication, HR Management, Volksbanks Cooperation, Legal Affairs, Organisation,  Corporate Planning & Finance, ARZ Allgemeines Rechenzentrum GmbH as well as VB Services für Banken GmbH.

Division 2, “Risk” includes the following areas: Strategic & Operational Risk Management, Strategic Projects, Group Risk Management and VB Management Consulting.

The new division 3, “Market” now contains all business units that make up VBAG´s core business which is the function as central institution of the Volksbank sector and all related services provided to the regional Volksbanks. These include Group Treasury services, products provided by VB Investments,  liquidity management and other services provided to the regional Volksbanks,  i.e. syndicated finance, subsidy management, project finance in renewable energy as well as VB Factoring Bank AG and Immo KAG.

All business units which no longer are defined as core business are pooled in division 4, “Non-core Business”, and will be wound down in the medium-term in an ordered process that preserves value. Division 4 comprises the former business units Corporates and Real Estate as well as parts of the investment book. VB Romania, Volksbank Leasing International and Volksbank Malta are also assigned to this division. These subsidiaries will continue their business activities according to the market situation, but are no longer part of core business under the new strategy and are set to be sold at a later date.

The new divisional structure reflects the concentration on core business and underpins Österreichische Volksbanken-AG’s task of servicing the regional Volksbanks and supporting them with innovative products.