Austrian Times RSS FeedsLike the Austrian Times Facebook page!Follow us on Twitter!


Events for October
M T W T F S S
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2
Add your event FREE

Today

Videos


BurgKino

Pub Quiz everyTuesday at Johnny's Pub

Popular in Austria


Cosmo&Nanu

Finance sector salary increase sealed

Financial sector staff will get more from next month, it has been announced.

Negotiators agreed about an income increase of 3.47 per cent on average yesterday (Thurs). The decision came after clerks were given the all-clear by the Federal Trade Union (ÖGB) to down tools in an attempted pressure increase. They initially called for a salary hike of 4.9 per cent while bank bosses suggested an increase of only 1.5 per cent.

The Austrian Association of Private Employees (GPA-djp) announced yesterday it accepted the latest suggestion by financial sector company chiefs. The settlement means that the wages of bank employees who earn comparably little will benefit more than their rich colleagues.

Around 80,000 people are working in the domestic banking sector. The industry’s most powerful players are Erste Bank Group AG (Erste Bank) and Bank Austria (BA). BA is part of Italian bank UniCredit. It manages the Italian finance institute's operations in 14 Eastern European (EE) countries. UniCredit, which has 160,000 employees, sustained losses of more than nine billion Euros last year.

BA’s annual net profit decreased by 70.5 per cent to 209 million Euros from 2010 to 2011. The bank’s performance was tarnished by the challenges of its Kazakh subsidiary company. The bank might be sold soon. BA also lost money because of the reassessment of the value of Greek government bonds made necessary by the economic downturn in Greece and the decision to cancel most of the European Union (EU) member’s debts.

BA head Willibald Cernko said he was nevertheless "proud" about how BA did in 2011. Cernko stressed that BA had not plunged into the red in any of the past four years – despite the global economic turmoil. BA’s total assets soared from 193 billion in 2010 to 199.2 billion Euros in 2011, he explained.

Erste Bank sustained a loss of 719 million Euros last year despite the strong performance of its Austrian branch which achieved a profit of 177.6 million Euros, up from 166.7 million in 2010. Especially Erste Bank’s representations in Romania and Hungary are in trouble. Erste Bank CEO Andreas Treichl said the bank planned to reduce its workforce level by around 450 in the country. Hungary is the seventh-most important trading partner of the Austrian economy.

Erste Bank is not the only Austrian financial institute which struggled in Hungary last year. BAWAG PSK (BAWAG) head Byron Haynes currently tries to find a buyer for its five per cent interest in Hungarian bank MBK. BAWAG – which has 1.6 million customers and over 4,000 staff – has reduced its share in MBK in recent years.

BAWAG had profits of 122.5 million Euros last year, slightly more (plus 0.7 per cent) than in 2010. The Vienna-based bank was established in 1922 and acquired by US investment firm Cerberus Capital Management (Cerberus) five years ago.

Austrian Times


Are you on Facebook? Like the Austrian Times on Facebook and win great prizes!


Cosmo and Nanu
ORF Watch

Related articles: EU

  1. Best of the bookshelf in May, part four

    » Panorama 2012-05-31

    A Harvard University professor’s book on the killing of Osama Bin Laden, a collection of funny experiences on planes and many more interesting releases are out now.

  2. Drachma reintroduction 'would mean social explosion'

    » General News 2012-05-31

    A renowned economist has warned from reintroducing the drachma in Greece.

  3. EC warns debt-ridden Austria

    » General News 2012-05-31

    Austria has been criticised for its high public debts.

more related articles tagged "EU"

Related articles: crisis

  1. Drachma reintroduction 'would mean social explosion'

    » General News 2012-05-31

    A renowned economist has warned from reintroducing the drachma in Greece.

  2. EC warns debt-ridden Austria

    » General News 2012-05-31

    Austria has been criticised for its high public debts.

  3. Property prices keep climbing

    » Business 2012-05-31

    A real estate expert has expressed concerns about property prices in Austria.

more related articles tagged "crisis"

Related articles: CEE news

  1. AUA under pressure as pilots quit

    » Business 2012-05-30

    The number of pilots and stewardesses leaving Austrian Airlines (AUA) because of the upcoming pay cuts is on the rise.

  2. Pay cuts scare off AUA pilots

    » Business 2012-05-29

    Dozens of pilots have left Austrian Airlines (AUA) in the past weeks, according to the loss-making carrier’s works committee.

  3. Austrian skiers create overnight stay record

    » Business 2012-05-29

    The number of winter season overnight stays by Austrians has reached a new record.

more related articles tagged "CEE news"

Tag cloud:
UniCredit  Financial  rsquo  Bank  Italian  Employees  salary  Hungary  BAWAG  ndash  bank  Austrian  Cernko  billion  European  sustained  Euros  performance  profit  Erste

Latest News

 

Get Shorty As Confused Bald Ibis Gets Lost Again
A rare bald Ibis that seems to have a different sense of direction to her fellow birds has once again had to be rescued after getting stuck trying to find a different route to the southern Italian feeding ground.

Alpine Trains Venture Into Space As The Final Frontier
Austria’s national railway line the OeBB has raised eyebrows after offering themed toilets including one that is supposed to "look and smell like outer space".

MEP caught In Brit papers Fraud Probe Jailed
A corrupt MEP caught by a British newspaper offering to propose amendments to EU laws in exchange for 100,000 euros a year has been given a three-year-jail term.

Vienna Jihad Girls Want To Come Home
The two Austrian teenage girls who became ‘poster girls’ for the jihad in Syria are now desperate to come home after getting completely disillusioned with their new lifestyles.

Mega-Station Opens
There was a festival atmosphere as Bundespresident Heinz Fischer opened Vienna's new Hauptbahnhof Friday morning.

Apple Truck Causes Traffic Jam
When 24 tonnes of apples are catapulted across a road it can only mean a jam.

Farmer Cleared Over Wolf Shooting
Furious animal rights campaigners have accused an Austrian farmer of lying after he shot dead a wolf that he claimed he thought was a fox.

Rare Bald Ibis Makes Microlight Flight To Italy
The project to introduce an extinct bird back to Europe is hailing success after successfully negotiating a new route over the Alps and training 14 Northern Bald Ibises how to fly south to winter feeding grounds in southern Tuscany.

Pat On The Back From Manure Explosive
A traffic cop in Austria got more than he bargained for after a booby trap covered him head-to-toe in manure as he was trying to catch people speeding.

Viennese Jihad Girl May Have Been Killed
Austrian police say that one of the two attractive young teenage girls who fled the country to go to Syria to fight on the side of Islamic rebels may have been killed.

 


Mala Vrata

The most popular stories –
last 7 days



Don't moan alone, the Ombudsman Investigates.

Why suffer in silence. Let off steam by letting our readers share your troubles. File your complaints about anything and everything here.

Our ombudsman David Rogers will try and help solve some of the problems from lazy civil servants through to incompetent companies – and at the very least the worst transgressors will end up in our weekly special report.


Austrian Zimmers