Banks in Austria – an Overview
Since Austria is one of the wealthiest countries in the Euro area, it’s expected that its banking system has been doing incredibly well.
Let’s look at two specific indicators that would prove how strong Austria’s banking system is.
The returns on assets for Austrian banking system for the last six quarters till the first quarter of 2017 are 0.6%, 0.5%, 0.6%, 0.6%, 0.6%, and 0.7% (first quarter, 2017) respectively. And along with that the cost to income ratios for the last six quarters till the first quarter of 2017 are 62.8%, 72.7%, 72%, 71.2%, 74.5%, and 70% (first quarter, 2017) respectively.
Structure of Banks in Austria
One of the most noteworthy things about Austria’s banking system is the structure of Austrian banks. For historical reasons, the Austrian banks have been sorted out into trade associations but they are organized as per the sectors.
- Single-tier: Joint-stock banks, specialized credit institutions, mortgage banksMortgage BanksA mortgage bank is a bank with a specialization in lending the money against the mortgage of any specific securities. They structure various loan products at a cheap rate or with better funding arrangements and involves various activities like loan origination, mortgage sale etc., and housing construction banks are single-tier.
- Two-tier: Volksbanken and savings banks are two-tier.
- Three-tier: Only Raiffeisen banks are three-tier.
Top 10 Banks in Austria
As per the total assets, here is the list of top 10 Austrian banks. Note that the list is updated as per the data of 2016 –
#1. Erste Group Bank:
This bank is the topmost bank in Austria as per the total assetsTotal AssetsTotal Assets is the sum of a company's current and noncurrent assets. Total assets also equals to the sum of total liabilities and total shareholder funds. Total Assets = Liabilities + Shareholder Equity owned, i.e. EUR 208.227 billion. Erste Group Bank is one of the oldest banks in Austria. It was founded in the year 1819. This bank has employed over 47,000 employees and served over 16.1 million clients around the globe. Erste Group Bank also has a global presence in 7 countries in the world and they are also the largest service providers in Eastern and Central Europe. Their current market capitalization is EUR 15,831.68 million.
#2. Raiffeisen Zentralbank (RZB Group):
This bank takes the second position in the overall rating as the top bank as per the total asset owned. RZB Group’s total assets are EUR 134.847 billion. RZB Group is the second-largest bank in Austria. It was founded in 1927 in Vienna. It has more than 50,000 employees working for them and they are serving over 16.5 million clients all around the world. Their area of expertise is asset managementAsset ManagementAsset management is a method of managing funds and investing in both traditional and specialized products in order to generate returns consistent with the investor's risk tolerance. , mergers & acquisitions, and leasing.
#3. UniCredit Bank Austria AG:
This banks takes the third position in the overall rating as the top bank as per the total asset owned. UniCredit Bank Austria AG’s total assets are EUR 105.785 billion. It was founded in 1991 and it came under UniCredit in the year 2005. It has over 6350 employees working for them and they serve their customers in over 162 branches. Their headquarters are in Vienna. This bank has a global reach in many countries including Bulgaria, Croatia, Czech Republic, Hungary, Bosnia, Russia, Serbia, Turkey, etc.
#4. BAWAG P.S.K.:
This bank has taken the fourth position as per the total assets owned. BAWAG P.S.K.’s total assets are EUR 39.743 billion. It was founded in the year 1922 and the headquarters are in Vienna. They have employed around 2500 employees and they have been serving over 2.5 million customers for almost over 100 years. BAWAG Group is one of Austria’s largest banks. It has been operating in Austria, Germany, France, United Kingdom, and the United States.
#5. Raiffeisenlandesbank Oberosterreich:
This bank is the fifth-largest bank in Austria as per the total assets owned. Raiffeisenlandesbank Oberosterreich’s total assets are EUR 39.385 billion. It has 17 branches that assist many small and medium-sized enterprises. This bank has been serving over 80,000 private customers. This bank specializes in corporate banking, retail banking, and private banking and investor relations.
#6. Osterreichische Kontrollbank AG:
This bank stands at a sixth position as per the total assets owned. The total assets owned by this bank are EUR 26.583 billion. This bank was founded in 1946. The headquarters of this bank is in Vienna. Osterreichische Kontrollbank AG specializes in capital marketCapital MarketA capital market is a place where buyers and sellers interact and trade financial securities such as debentures, stocks, debt instruments, bonds, and derivative instruments such as futures, options, swaps, and exchange-traded funds (ETFs). There are two kinds of markets: primary markets and secondary markets. services and export services. This is a special-purpose bank, specifically built for export services and international matters. Around 335 employees work in this bank.#
#7. Raiffeisenlandesbank Niederoesterreich-Wien AG:
This bank stands at number seven as per the total assets owned banks in Austria. The total assets owned by this bank are EUR 25.405 billion. This bank is comparatively old. It was founded in the year 1898. The headquarters of this bank are in Vienna. This is one of the biggest commercial banks in Austria. It offers various products like deposits, loans, cash managementCash ManagementCash Management refers to the appropriate collection, handling, & disbursement of cash for ensuring financial stability & avoiding insolvency risk. solutions, and project finance.
#8. Oberbank AG:
This bank has taken the eighth position as per the total assets owned by banks in Austria. Oberbank AG’s total assets are EUR 19.159 billion. This is one of the oldest banks in Austria. It was founded in the year 1869. This bank has a presence in all over Europe. They support the local customers of Austria, Germany, Hungary, Slovakia, and the Czech Republic. Oberbank AG is very careful about investing. They only invest when there are long term perspective and great returns. The bank has employed over 2049 employees.
#9. HYPO NOE Gruppe:
HYPO NOE Gruppe is on the ninth position in the ranking of banks in Austria as per the total assets owned. This bank’s total assets are EUR 15.392 billion. This is again another oldest bank in Austria. It was founded in the year 1888. It was fully owned by the State of Lower, Austria. The motto of this bank is to ensure closeness to customers and maintaining sustainability in its approach. It has 27 branches in Vienna and Lower Austria. This bank specializes in public finance, real estate finance, corporate finance, project financeProject FinanceProject Finance is long-term debt finance offered for large infrastructure projects depending upon their projected cash flows. Moreover, an investor has to form a Special Purpose Vehicle (SPV) to acquire the same. , and treasury services.
#10. Raiffeisen-Landesbank Steiermark:
This bank stands tenth in the ranking of top banks in Austria as per the total assets owned. The assets of Raiffeisen-Landesbank Steiermark are EUR 14.962 billion. It was founded in the year 1927. This bank has 9 branch offices in Graz and 1 in Frohnleiten. The primary focus of this bank is industrial, corporate, and large scale customers. The main markets of this bank are in Southern and Eastern Europe. Around 942 employees work here.
We hope you liked this guide to top banks in Austria. If you are looking forward to making a career in Banking, then you can check out some of the awesome resources –