Österreichische Volksbanken-Aktiengesellschaft ... - Volksbank AG

Investkredit is now a wholly owned subsidiary of VBAG (see also www.investkredit.at). The
predominant feature in the fiscal year 2006 was the integration of the Investkredit.
In 2006, VBAG transferred the assets comprising the business's commercial and syndicate units
(Kommerz- und Konsortialgeschäft) to Investkredit to improve synergy.
In July 2006, VBAG agreed in principal with the province of Lower Austria (Land Niederösterreich)
to sell VBAG's entire participation of approximately 41 per cent. of the shares in
Niederösterreichische Landes-Hypothekenbank Aktiengesellschaft to the province of Lower
Austria for EUR 115,000,000 and further ancillary measures, such as the entering into a cooperation
agreement pursuant to which VBAG and its subsidiaries will continue to be available
as business partners for the province of Lower Austria. The transfer of the shares is intended to
take effect on 1 July 2007.
Business Overview
Principal fields of activity
VBAG is a universal bank and offers, directly or through its subsidiaries, comprehensive
banking services to private clients, corporate clients, clients from the public sector and to its
partners. In addition, the VBAG Group offers investment funds, real estate and leasing
products and related services.
According to its articles of association, the principal corporate purpose of VBAG is to further
the interests both of the Austrian Volksbanken and their members as well as those of
SMEs. Furthermore, VBAG’s objective as central institution of the Austrian Volksbanken is
to engage in all types of banking operations domestically and internationally, including performing
the following tasks for the Austrian Volksbanken:
� managing and investing liquidity funds, especially the liquidity reserves of the Austrian
Volksbanken;
� granting loans to the Austrian Volksbanken, providing them with technical support in
their lending operations and offering temporary liquidity support, as well as facilitating
money and business transactions between them and with third parties;
� making cash free payment transfers and providing other banking services, ensuring
such transfers and services and their further technological development and advertising
for such payment transfers and banking services; and
� issuing covered bonds.
Description of main business divisions
VBAG’s activities are organised in the following business divisions:
Corporate
This business division is responsible for servicing SMEs, multi-national corporations and
large corporate clients. It aims to provide tailor-made and adequate solutions to the everdiversifying,
increasingly sophisticated financial and business strategy needs of domestic
and international corporate clients.
Corporate banking provides an integrated range of products such as - but not limited to -
corporate and commercial banking, trade finance, leasing, syndication, securitisation, real
estate finance, acquisition finance and factoring.
The services are provided primarily through Investkredit and its subsidiaries.
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