VBAG: Information regarding today's publication from the EBA

Vienna (December 8th, 2011) – The European Banking Authority (EBA) announced today that Österreichische Volksbanken-Aktiengesellschaft (VBAG) faces a capital requirement of EUR 1,053 million in order to fulfill EBA requirements by June 30, 2012. In order to get to a Core Tier 1 Ratio of 9%, VBAG would need EUR 942 million. The difference to EUR 1,053 million is an additional capital buffer relating to sovereign risk.

The published amount is in line with the banks’ own calculations. Despite the difficult economic environment, there is just a slight increase of the capital requirement from the previously reported EUR 972 million (of which EUR 224 million was the sovereign capital buffer). This shows, that the measures undertaken by the management to improve the capital situation are successful. VBAG will continue to implement its restructuring strategy in order to further strengthen the capital ratios in accordance with the legal requirements of the European Commission. Thus, additional measures improving the capital ratios are currently being discussed with all stakeholders.

EBA calculations include participation capital issued to the Republic of Austria, but exclude EUR 534 million of privately placed participation capital.

For further information on the capital requirement of VBAG download the file.

download file

For further information please contact:
Österreichische Volksbanken-Aktiengesellschaft
Petra Roth
Tel.: +43 664 6129223
Mail: petra.roth@volksbank.com