Volksbank Malta is likely to be sold in about three to five years time, but no significant changes in business operations or with regard to personnel are expected, sources have told The Times Business. Significantly, Volksbank Malta, part of the Austrian Volksbank banking group, is likely to be sold to Austria’s regional Volksbanks, which have a majority shareholding in Volksbank. The eventual sale of Volksbank Malta is due to a restructuring of the Volksbank group – officially announced last week – which is a consequence of the global economic climate and the changes in the financial services sector. The bank in fact recently approved a new company structure.

Volksbank is to focus more on its core business in Austria and it has already sold Volksbank International AG, its Eastern European bank network, to Sberbank of Russia. It plans further sales and a reduction of risk.

The restructured Volksbank plans to combine all its operational divisions which no longer form part of the core business into a separate department.

Its future core market will include treasury operations, VB Investments, syndicate transactions, the financing of renewable energy sources, VB Factoring Bank and Immo KAG investment company.

Apart from its real estate and corporate business, which Volksbank will phase out in the medium term, VB Romania, Volsbank Leasing International and Volksbank Malta are to be included in the non-core business division and eventually sold off.

The selling process, however, has not yet started.

Sources have told The Times Business that Volksbank’s restructuring is taking place in close co-operation with the Austrian Ministry of Finance and regulators. Discussions are being held with the stakeholders, mainly with the majority shareholders – the individual regional Volksbanks, which are expected to buy Volksbank Malta.