At the beginning of the year, chairman Franz Pinkl defined the targets of Österreichische Volksbanken-AG (ÖVAG) for 2007. “We are planning to extend our network in the Central and Eastern European countries. Ukraine in particular, is a very interesting market for us, in view of retail banking as well as real estate financing.”

Herbert Skok, Managing Director of Volksbank Malta, explained: “ÖVAG is actually one of the top banks in Austria: we have over 600 branches just in Austria, almost 7,000 employees and a total balance sheet sum of e61.2 billion for the first half of the year 2006. Through our subsidiary Volksbank International AG (VBI), the group has an additional network of 240 branches in Slovakia, Czech Republic, Hungary, Slovenia, Croatia, Romania, Bosnia-Herzegovina and Serbia, with more than 3,100 employees and a total balance sheet sum of over e5.9 bio.”

In a press conference, Volksbank Group announced the purchase of Elektron Bank in the Ukrainian city of Lviv. “With this purchase, we have added another strong partner to our network in Central and Eastern Europe,” Mr Skok continued. “Business strategy and size of this bank perfectly match with the concept of ÖVAG. The bank focuses on retail business with an emphasis on deposits and financing.”

“The purchase of Elektron Bank is a perfect way to enter the Ukrainian market,” Mr Skok explained. “In the region of Lviv, the new subsidiary already has a market share of six to eight per cent. The acquisition of this well-managed regional bank gives VBI the perfect opportunity to enter an aspiring and financially strong market.”