Share capital increase for Volksbank Romania before sale impacts parent bank's results

The EUR 186 million loss posted by the Volksbanken group was not generated by the operations of the group in Romania, but rather by the restructuring measures for Volksbank Romania, the bank has said. The parent bank also increased its Romanian subsidiary’s share capital, which was included in the first quarter results, and which had a negative impact of EUR 128 million, according to the parent group’s report. Under the restructuring agreement, Volksbank Romania – in which VBAG holds a 51% stake – must be sold by the end of 2015. The full half-year report from Volksbanken is here (in pdf, in English). Last year, Volksbanken performed a EUR 60 million share capital increase for its Romanian subsidiary. The Austrian group could finalize the sale of its bank in Romania in the second half of this year, and plans several measures, including continuing to restructure the loan portfolio, which in turn requires a share capital increase. The parent bank already sold VB Leasing Romania and a non-performing loans portfolio earlier this year. Volksbank Romania sells EUR 495 mln non-performing loans portfolio Volksbank opens new branch in Romania, plans further expansion this year editor@romania-insider.com