Prima pagină » English » Erste To Increase Share Capital By EUR660M To Repay EUR1.7B In Participation Capital

Erste To Increase Share Capital By EUR660M To Repay EUR1.7B In Participation Capital

Publicat: 24/06/2013, 18:02

Actualizat: 24/06/2013, 18:02

The group plans to pay back EUR1.205 billion it received from the Austrian state in 2009 to cope with the financial crisis and redeem participation capital of EUR559 million held by private investors.

Erste, majority shareholder of Romania’s largest lender Banca Comerciala Romana, will increase share capital by approximately EUR660 million in the third quarter of 2013.

„The planned redemption of participation capital will further strengthen Erste Group’s ability to generate capital and improve capital ratios as there will be no annual dividend payments on the participation capital from 2014. These gross savings amount to EUR149 million post tax in 2014 and EUR158 million post tax in 2015, with higher savings in subsequent years,” the statement reads.

Erste”s operating profit decreased 4.3% last year to EUR3.47 billion and is expected to fall 5% this year.

Erste Group is listed in Vienna, Bucharest and Prague.