2006

Probably the most important change concerns the corporate lending segment, which Investkredit Bank AG will manage in future for the Group at an operative level: This is subdivided into the areas Medium-sized Corporates, Corporates and International Business and will offer customers a greatly expanded product range. In addition, real estate business will also be done by Investkredit Bank AG which manages real estate financing and loans under the Investkredit trade name.  Under the established trade name of Immoconsult, real estate leasing and project development will be done; Europolis will be responsible for Asset Management in the real estate segment.
Kommunalkredit Austria AG, the number 1 in public finance, changes from being Österreichishe Volksbanken AG’s "granddaughter" to its subsidiary and, together with Niederösterreichische Landesbank Hypothekenbank, represents strong local government financing within the Group.
Österreichische Volksbanken-AG, with its subsidiaries Volksbank Wien AG, Volksbank Linz-Mühlviertel, Ärztebank and Immobank AG asserts its market position in the domestic retail business.  In Central and Eastern Europe Volksbank International AG is on the road of success. In the same region, VB-Leasing International continues to operate product leasing.
The Treasury segment takes on a central function in Österreichische Volksbanken-AG with the entire proprietary trading and capital markets.  

All in all, Österreichische Volksbanken-AG has carried out a very tight schedule with the acquisition of Investkredit Group and the resulting restructuring of its Group. Starting with a 3.5% investment in Investkredit at the end of 2004 ÖVAG became the largest individual shareholder of the specialist bank in February 2005 with around 45%. In July 2005 ÖVAG took over the majority with roughly 98%: Since the end of November – after a successful squeeze out – it holds all shares and today it can already present a new Group structure.  The personnel changes will already be effected by March 2006, the resettlement of a total of 120 employees has in part already been done or will be take place at the beginning of April.  “The quick integration in the record time of only eight months shows that Österreichische Volksbanken-AG and the Investkredit Group supplement each other perfectly.  There were only a few two-track issues to be clarified, and that has already been done,” explained Chief Executive Officer Pinkl, who also formulated clear targets that he would like to have reached with the new ÖVAG Group by the year 2010:  Profit on ordinary activities should increase to EUR 500 m, regarding return on investment he is aiming at a value of more than 15%, the cost-income-ratio, as an important key figure for the cost structure, should be below 60%. 

Please direct your questions to:
Gerlinde Maschler
Österreichische Volksbanken-AG
Head of Public Relations
Peregringasse 3, 1090 Vienna, Austria, www.oevag.at
phone: +43(0)50 4004 - 3864
fax: +43(0)50 4004 - 83864