An Extraordinary General Meeting (EGM) was held today to prepare for Österreichische Volksbanken-Aktiengesellschaft (VBAG) to be split up and run down. This is planned for the first six months of 2015. Shareholders today unanimously took the decision in principle that VBAG will be put into run down status, and instructed the Managing Board to take appropriate preparatory measures.

"Today's decision will accelerate the restructuring of the Association of Volksbanks. The plan to transform VBAG into a wind down unit represents the only way forward in order to achieve a sustainable stabilization of the Association of Volksbanks and is in the interest of the bank's owners and creditors", says VBAG CEO Stephan Koren.

The agenda item "potential adoption of capital measures" requested by the Austrian Financial Market Authority has been discussed at the General Meeting and the Management Board reported that currently neither VBAG's core shareholders nor third parties are prepared to provide capital to VBAG.

It was reported that preparatory measures for the split and wind-down of VBAG will result in valuation losses of approximately EUR 500 million in 2014. A total result after taxes of approximately EUR -750 million is expected for the year 2014.

The plan is to split VBAG up in the first half of 2015, after which VBAG is to leave the joint liability scheme and will put back the banking license.
The run down of VBAG is subject to approval from a number of bodies, notably the European Commission for Competition, the European Central Bank and the national authorities.

Within the framework of the supervisory review and evaluation process (SREP), the European Central Bank today announced a draft decision requiring the Association of Volksbanks to maintain a CET1 ratio of 14,63% from 26 July 2015.

The ECB's analysis is based on 31 December 2013, therefore Volksbank Romania still represents a risk factor. As was announced by VBAG, the closing of the sale of Volksbank Romania is expected to take place in the first half year of 2015.

Furthermore, the Association's governance structure has been viewed critically, which will be taken into consideration when implementing the restructuring of the Association of Volksbanks.

Contact for media:
Petra Roth
Österreichische Volksbanken-AG
Mobil: 0664 6129223
Mail to: petra.roth@volksbank.com

Contact Institutional Investor Relations:
Karl Kinsky: 0043 504004-3338
Manuela Elsensohn-Pauser: 0043 504004-3187
Mail to: investorrelations@volksbank.com

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