Volksbank keeps profit but no dividend payout

Volksbank Romania said it would not be issuing end of year dividend for 2008 profit as part of its Austrian parent bank’s strategy to recapitalize its balance sheet, this decision being applied to all its overseas subsidiaries, said the CEO of Volksbank, Gerard Schreiner.

“Our shareholders have agreed to endorse this measure. We will keep all profit and we will not pay out any dividend, measure that is applied by the entire banking group, not only in Romania”, Schreiner explained.

Last year, Volksbank Romania’s profit before taxes soared 54% from prior year, up to 37.8 mln euros.

The CEO of Volksbank added that in the yesterday’s meeting between IMF officials, BNR and nine foreign-owned banks, the group pledged to recapitalize the Romanian subsidiary if needed.

“We still have a high solvability, of nearly 17% more than the recommended level. If needed, the shareholders have committed to continue to raise the capital of the bank”, said Schreiner in an interview to NewsIn.

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