VBAG starts sales process of Volksbank Malta

Österreichische Volksbanken-Aktiengesellschaft (VBAG) has officially started the sales process of its bank subsidiary Volksbank Malta, as part of the European Commission's restructuring plan for VBAG, according to which VB Malta has to be sold until the end of 2015.

VB Malta was incorporated in 1995 and in the past years it constantly generated profits with €2.2 million profit after tax in 2012, based on total assets of approximately €540 million.

The bank has held a commercial bank license since 2002 and conducts retail and corporate financing for mainly local customers with a volume of some €112 million.

A syndicate partner in international financings, this business will be carved-out of VB Malta prior to its sale and the capital will, in coordination with the MFSA, be adjusted to reflect the lower business volume.

VBAG said that the acquisition target of the transaction "will be the local banking business only, based on a solid equity base." KPMG will act as advisor to the sales process.

Volksbank is to focus more on its core business in Austria and it has already sold Volksbank International AG, its Eastern European bank network, to Sberbank of Russia.

The restructured Volksbank plans to combine all its operational divisions which no longer form part of the core business into a separate department.  Apart from its real estate and corporate business, which Volksbank will phase out in the medium term, VB Romania, Volsbank Leasing International and Volksbank Malta are to be included in the non-core business division and eventually sold off.