Austrian bank registers record profit
Volksbank Malta has registered a record pre-tax profit of €7.29 million, up 33 per cent over last year's figures. "We have been very busy!" managing director Herbert Skok said with just a glimmer of understatement.Volksbank has gone through more than...
Volksbank Malta has registered a record pre-tax profit of €7.29 million, up 33 per cent over last year's figures. "We have been very busy!" managing director Herbert Skok said with just a glimmer of understatement.
Volksbank has gone through more than just a major physical refurbishment of its premises in Sliema. It has also restructured its workforce, increasing its sales team, and putting Maltese into top management positions.
"International margins are getting tighter so you have to work deeper with the market you have," Mr Skok said.
The focus is on an area where Volksbank has a clear competitive advantage: Central and Eastern Europe, where it has a network of 240 branches.
"Maltese businessmen are very interested in investing in this area so we can be of great assistance," he said.
Volksbank Malta also recently appointed Winston V. Zahra as its chairman, replacing Maurice Mizzi who resigned from the post for personal reasons.
"We wanted a chairman who was an active businessman and we are very happy that Mr Zahra accepted. He has already attended talks in Vienna with the Volksbank chairman and we are sure that his involvement will help us to better understand the Maltese business community."
This is Mr Zahra's first foray into banking and he was quite impressed with the way in which Corinthia has used Volksbank to penetrate the CEE markets.
"I think there are very good opportunities. The Island Hotel Group is also very interested in looking beyond the Maltese shores," he said.
Volksbank is concentrating on its other spheres of activity, including the provision of home loans.
"We offer a shorter repayment period than the major banks - 20 years - as well as a maximum of 75 per cent of the value. However, this is not a problem as we are not going for the mass market or for first-time buyers. We are focused on a more select market," Mr Skok said.
The bank is hoping to introduce internet banking and debit cards by next year but its main focus will be on new products, such as securities and derivatives.
"Derivatives are handled by a very strong unit in Vienna which can therefore offer good support," Mr Skok said.
The other person on the Volksbank Malta board is Werner Wess, who was in Malta recently for the announcement of Mr Zahra's appointment.
"Setting up Volksbank Malta was his idea so he is obviously very fond of it and proud of its success. He retired two years ago as chief financial controller to the head office but decided to remain on the Malta board and comes here six or seven times a year... And not only when there is a board meeting. He loves the island," Mr Skok said.
KEY FIGURES:
Profit before tax: €7.29 million (2005: €5.20 million) Net interest income: €8.9 million (2005: €7.2 million) Return on equity: 5.7 per cent Earnings per share: €2.89 (2005: E2.17) New customer accounts: +21 per cent Customer deposits: +38.5 per cent Loan portfolio: +52.8 per cent Assets: €917 billion Cost to income ratio: 24.1 per cent
Volksbank has gone through more than just a major physical refurbishment of its premises in Sliema. It has also restructured its workforce, increasing its sales team, and putting Maltese into top management positions.
"International margins are getting tighter so you have to work deeper with the market you have," Mr Skok said.
The focus is on an area where Volksbank has a clear competitive advantage: Central and Eastern Europe, where it has a network of 240 branches.
"Maltese businessmen are very interested in investing in this area so we can be of great assistance," he said.
Volksbank Malta also recently appointed Winston V. Zahra as its chairman, replacing Maurice Mizzi who resigned from the post for personal reasons.
"We wanted a chairman who was an active businessman and we are very happy that Mr Zahra accepted. He has already attended talks in Vienna with the Volksbank chairman and we are sure that his involvement will help us to better understand the Maltese business community."
This is Mr Zahra's first foray into banking and he was quite impressed with the way in which Corinthia has used Volksbank to penetrate the CEE markets.
"I think there are very good opportunities. The Island Hotel Group is also very interested in looking beyond the Maltese shores," he said.
Volksbank is concentrating on its other spheres of activity, including the provision of home loans.
"We offer a shorter repayment period than the major banks - 20 years - as well as a maximum of 75 per cent of the value. However, this is not a problem as we are not going for the mass market or for first-time buyers. We are focused on a more select market," Mr Skok said.
The bank is hoping to introduce internet banking and debit cards by next year but its main focus will be on new products, such as securities and derivatives.
"Derivatives are handled by a very strong unit in Vienna which can therefore offer good support," Mr Skok said.
The other person on the Volksbank Malta board is Werner Wess, who was in Malta recently for the announcement of Mr Zahra's appointment.
"Setting up Volksbank Malta was his idea so he is obviously very fond of it and proud of its success. He retired two years ago as chief financial controller to the head office but decided to remain on the Malta board and comes here six or seven times a year... And not only when there is a board meeting. He loves the island," Mr Skok said.
KEY FIGURES:
Profit before tax: €7.29 million (2005: €5.20 million) Net interest income: €8.9 million (2005: €7.2 million) Return on equity: 5.7 per cent Earnings per share: €2.89 (2005: E2.17) New customer accounts: +21 per cent Customer deposits: +38.5 per cent Loan portfolio: +52.8 per cent Assets: €917 billion Cost to income ratio: 24.1 per cent