AUSTRIA: BAWAG, BAYERNLB BUY BUILDING SOCIETY

Article Abstract:

The Austrian bank Bawag and Bayerische Landesbank (BayernLB) of Germany, which holds a 46% stake in Bawag, have each acquired 32.5% of the stock of Hypo-Bausparkasse building society. The latter was set up by Austria's regional mortgage banks in 1993 and it reached black figures four years later. The building society, which is to be renamed LBA Landesbausparkasse, employs 50 staff and has 125,000 clients with combined savings of about Sch 4bn. The new owners aim to raise the market share of LBA, which is the smallest of Austria's five building societies, from 4.7% to 10% within 2-3 years. Sales and marketing are to be strengthened. Bawag started selling LBA savings contracts in September 1999 and has so far signed 7,000 contracts. Also the insurance company Osterreichische Beamtenversicherung, which raised its stake in LBA from 4% to 10%, is to boost the sales of LBA products. At the same time new products will be launched. For instance building society clients with a salary account with Bawag will get a life insurance policy for free which covers any overdraft in case of death. The stakes acquired by Bawag and BayernLB were sold by the mortgage banks of Lower Austria, Upper Austria, Salzburg and Styria and by Bayerische HypoVereinsbank AG of Munich. The mortgage banks of Carinthia and Vorarlberg each own 12.5%. Building society saving is said to be the most popular form of saving in Austria. The market is considered saturated.

Asset sales & divestitures, Acquisitions & mergers, Germany, Savings & Loan Assns, Savings Institutions, Savings and loan associations, Bawag, Bayerische Landesbank, Bayerische Hypovereinsbank

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Die Erste Bank will ihr Filialnetz sp rbar straffen

Article Abstract:

Erste Bank is to reduce the number of branches in Vienna. Out of the 18 former GiroCredit branches, 13 will be merged with Erste branches in the next two years. Altogether GiroCredit had 46 branches in Austria. Erste is interested in transferring the remaining ones to the local savings banks. Erste Bank has 377 branches, most of them in Vienna, Salzburg and Upper Austria.

Comment:

Is to reduce the number of branches in Vienna, Austria

Facilities & equipment, Erste Bank, Article

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