Bank Austria’s results for the first six months of 2011:
Net profit increases by 52 per cent to EUR 640 million
- Net operating profit up to EUR 900 million, driven by strong performance in customer business and significantly lower provisioning charge
- Provisioning charge in Austria and CEE continues to decline by 21 per cent to a total of EUR 705 million
- Bank levy in Austria amounts to about EUR 63 million , in Hungary EUR 15 million
- Write-down on Greek government bonds as a contribution to the rescue package has a one-off impact of EUR 100 million on net profit
- After this one-off effect, which was recognised as a charge posted in the first half of 2011, net profit amounts to EUR 640 million, an increase of 52 per cent compared with the same period of the previous year
Bank Austria's CEO Willibald Cernko: "Our commercial banking business with customers shows a satisfactory trend, despite the government debt crisis and related uncertainty in the market and among customers. Our banking subsidiaries in Central and Eastern Europe (CEE), in particular, have proved to be highly resilient to the crisis and have strongly supported our results with their good revenue performance. As the provisioning charge in Austria and in CEE has continued to decline, Bank Austria’s net operating profit rose by 15 per cent. Net profit improved by 52 per cent to EUR 640 million, despite the burdens resulting from bank levies and the one-off write-down on Greek government bonds. It should be noted, however, that the improvement started from a low base and that we have not yet reached pre-crisis levels. We need to further improve our earnings power in view of the higher capital requirements which banks are expected to meet."