27.08.2010
VBAG Group result for the first half of 2010: positive development continued
In the second quarter of 2010, Österreichische Volksbanken-AG (VBAG) Group confirmed the turnaround of the first quarter.
After a positive first quarter, the upward trend has continued in the second quarter as well. At the end of the first half of the year, profit before taxes was euro 45 million. From January to June of the previous year, the pre-tax result was euro -139 million. “We have had some difficult times, but VBAG Group is profitable again“ – says VBAG Chief Executive Officer Gerald Wenzel. “At Group level, we are expecting a pre-tax profit for the full year in the high two-digit million range“.
The operating result (net interest income, net fee and commission income, net trading income, administrative expenses) was euro 234 million. The operating cost-income ratio could be further decreased, at 54.6% it was below the figure of 57.6% for 2009.
Capital ratios were stable and satisfactory. The tier 1 ratio (in relation to credit risk) was 9.4%, while the equity ratio for the first half of 2010 was 11.4%. “These figures demonstrate the solid capitalization of VBAG Group“, commented Wenzel. At the end of the first half of 2010, total assets amounted to euro 50.9 billion, up euro 1.7 billion or 3.5% on the end of the year.
The economic environment remains difficult in some regions of Central and Eastern Europe. For this reason, VBAG Group is still recording increased risk provisions which stood at euro 194 million in the first half of 2010. Risk provisions are still above the levels of pre-crisis years; compared to 2009, however, they declined by 31%. Following risk provisions of euro 269 million in the third quarter of 2009 and euro 300 million in the fourth quarter, figures of euro 107 million in the first quarter of 2010 and euro 87 million in the second quarter showed a distinct trend reversal.
The turnaround was also visible with regard to the lending volume. After continuously decreasing in 2009 due to low demand, this trend was halted in the first quarter of 2010. The trend reversal became clearly noticeable in the second quarter. Loans and advances to customers increased by euro 400 million since the end of 2009, reaching euro 24.5 billion. The Retail segment made the largest contribution to this growth with euro 200 million.
Debts evidenced by certificates decreased since year-end 2009 due to scheduled repayments and amounted to euro 16.9 billion. The decrease was largely offset by growing customer deposits and totaled 2.7%. The deposit base was strengthened in the second quarter, at euro 7.7 billion as of 30 June 2010, amounts owed to customers increased by euro 270 million. The liquidity situation of VBAG Group therefore remains comfortable.
The outlook for the full year 2010 is considerably more optimistic than it was in 2009, as the turnaround is already apparent in the figures for the first and second quarters. “Our restructuring process is paying off. With the combination of VBAG and Investkredit this process will be continued consistently and shows our commitment to corporate customers”, concluded CEO Wenzel.
Volksbank AG - VBAG Group result for the first half of 2010
In breve:
Il pdf completo del financial report è qui:
http://www.volksbank.com/m101/volks...chaeftsberichte/vbag_halfyear_2010_en_end.pdf