Overview of Top Banks in Austria
Austria has over 700 banks that play a crucial role in the country’s economy. They offer different kinds of services like helping regular people with their savings and loans (retail banking), helping businesses with their capital needs (corporate banking), and even helping with investments and managing wealth (investment banking and asset management). Some of the top banks in Austria are Erste Group Bank, Raiffeisen Bank International AG, and Oberbank AG.
The structure of Austria’s banking system allows the banks to offer custom and specialized services to each industry. These banks are closely regulated to ensure stability and security. Austrian banks are known for their reliability, efficiency, and ability to meet the diverse needs of individuals, businesses, and organizations. Their strong presence strengthens the economy and supports the country’s financial well-being.
Banking Structure
The structure currently operating in the region is given below:–
- Single Tier Structure: This structure involves various joint-stock banks, housing construction banks, specialized credit institutions, and mortgage banks.
- Two-tier Structure: Includes the traditional savings and cooperative banks operating
- Three-tier Structure: Includes Raiffeisen Banks
List of Top Banks in Austria
The following is a list of the top Banks which are currently operating in Austria. We have also added the financial metrics and key points for each bank for 2022.
1. Oesterreichische Nationalbank (OeNB)
| Key Points |
| Established: 1816 |
| Headquarters: Vienna, Austria |
| Area of Operations: Central and Eastern Europe |
Oesterreichische National (OeNB) is the central bank of the Republic of Austria, playing a crucial role in shaping the monetary and economic policies in Austria and the euro area.
It diligently carries out diverse responsibilities, including cash management, ensuring financial stability, and implementing effective monetary policies, contributing to the overall well-being of the economy. As an integral part of the ESCB, it upholds the principles of stability and security.
History:
1816: OeNB was established to stabilize the currency and promote economic growth.
1817-1998: OeNB financed and managed operations, contributing to Austria’s banking industry growth.
1999: Austria joined the EU, and OeNB became a member of the European System of Central Banks.
From 1999 to the present: OeNB is responsible for safeguarding and maintaining monetary policy stability in Austria. It is a part of the European system of Central banks.
Key Financial Metrics:
| Metric | Value |
| Net Income | €294.85 million (2022) |
| Total Assets | €261.13 billion (2022) |
| Annual Net Profit | €70.61million (2021) |
2. Erste Group Bank
| Key Points |
| Established: 1819 |
| Headquarters: Vienna, Austria |
| Area of Operations: Central and Eastern Europe |
| Presence: Operates in seven countries, including Austria, Czech Republic, Slovakia, Romania, Hungary, Croatia, and Serbia |
Erste Group Bank is the first Austrian savings bank and the most prominent financial services provider in the eastern part of the European Union. It is a provider of retail, commercial, and private banking solutions.
Erste Group bank offers savings and current accounts, loans, credit and debit cards, leasing, insurance, cash management, securities and derivatives trading, etc. It also provides products and services to individuals, financial institutions, government and public sectors, and corporate customers in Austria, Romania, Hungary, Croatia, etc.
Its current priorities are enhancing consumers’ financial stability, encouraging new entrepreneurs to create jobs, and supporting the growth of social organizations.
History:
1819: The first Austrian savings bank was founded as “Erste oesterreichische Spar-Casse”.
The 1990s: In 1993, Erste Bank became a public limited company. Later “Erste Bank der oesterreichischen Sparkassen AG” was listed first on the Vienna Stock Exchange.
The 2000s: It expanded its operations to Central and Eastern Europe by launching applications like George, ERSTE Stiftung, Zweite Sparkasse, Financial Life Park (FLiP)
Present: Erste Group has become the leading financial services provider in Austria, Central, and Eastern Europe, with over 16 million customers.
Key Financial Metrics:
| Metric | Value |
| Net Income | €2,164.7 million (2022) |
| Total Assets | €323.9 billion (2022) |
| Return on Equity | 12.6% (2022) |
3. Raiffeisen Bank International AG (RBI)
| Key Points |
| Established: 1927 |
| Headquarters: Vienna, Austria |
| Area of Operations: Central and Eastern Europe |
| Presence: Operates in 13 countries, including Austria, Czech Republic, Slovakia, Romania, Hungary, Croatia, Serbia, Bulgaria, Belarus, Russia, Ukraine, Albania, and Kosovo |
| Financial Strength: Listed on major stock exchanges, with a strong capital base and robust financial performance |
Raiffeisen Bank International AG (RBI) is a major commercial and investment bank in Austria, Central, and Eastern Europe (CEE). RBI provides retail banking, business banking, investment, commercial banking, leasing, and asset management services.
Today, RBI has a network of over 1500 branches and 45,000+ employees, serving around 17.7 million customers in Austria and 13 other countries with total assets of EUR 211 billion. It has also implemented several sustainability measures, like green banking initiatives, digital payment methods, etc., to support the environment and society.
History:
1918-1939: Raiffeisen Zentralbank Österreich (RZB), a cooperative central bank, was founded.
2010-2014: RZB rebranded as Raiffeisen Bank International (RBI) after a merger. In 2014, RBI acquired Polbank in Poland.
2015: RBI focused on strategic realignment and acquired Citibank’s core banking operations in Poland.
2017: A merger between RBI and Raiffeisen Zentralbank Österreich AG (RZB) occurred, with RBI becoming the head entity of Raiffeisen Banking Group (Austria) and acquiring Raiffeisen Bank Polska’s core banking operations.
2021: RBI merged with its parent company Raiffeisen Bank. RBI became the comprehensive legal successor of RZB under Austrian law.
Key Financial Metrics:
| Metric | Value |
| Net Income | €3.627 million (2022) |
| Total Assets | €207.057 billion (2022) |
| Total Equity | €18,764 million (2022) |
4. BAWAG P.S.K
| Key Points |
| Established: 1922 |
| Headquarters: Vienna, Austria |
| Area of Operations: Austria and selected international markets |
| Presence: Operates primarily in Austria, with some international branches and subsidiaries |
BAWAG Group AG is the fourth largest Bank, headquartered in Vienna, Austria, with 2.1 million customers. The primary focus of BAWAG Group bank is on organic growth, M&A, strong capital position, minority investments, stable customer funding, etc.
The Retail & SME strategy of the Bank focuses on consumers to make their lives easier and more manageable in financial affairs. The Corporates, Real Estate & Public Sector segment focuses on domestic and international lending, deposits, sovereigns, and payment services.
History:
1922: BAWAG began as the ‘Austrian Worker’s Bank.’
1963: It was renamed ‘Bank für Arbeit und Wirtschaft AG’ (BAWAG), which translates to ‘Bank for Labour and Business Corporation’ in English.
2005: BAWAG and P.S.K. merged, forming BAWAG P.S.K.
2017: BAWAG Group AG, the holding company of BAWAG P.S.K., became a listed company on the Vienna Stock Exchange, marking a significant milestone in Austria’s history. It also expanded into the German market through the acquisition of Südwestbank and PayLife.
2018-2021: BAWAG P.S.K. completed several acquisitions, including Deutscher Ring Bausparkasse, BFL Leasing, Health Coevo AG, Zahnärztekasse AG, Hello Bank! Austria (rebranded as an easy bank), and DEPFA BANK.
Key Financial Metrics:
| Metric | Value |
| Net Income | €509 million (2022) |
| Total Assets | €56.523 billion (2022) |
| EPS | €5.81 (2022) |
5. UniCredit Bank Austria AG
| Key Points |
| Established: 1855 |
| Headquarters: Vienna, Austria |
| Area of Operations: Austria and selected international markets |
| Presence: Operates primarily in Austria, with international branches and subsidiaries |
UniCredit Bank Austria is a prominent and well-capitalized major bank in Austria, boasting a workforce of over 5000 employees. It operates as part of UniCredit’s Central and Eastern Europe (CEE) unit.
UniCredit Bank Austria AG (UBA) specializes in retail, corporate, and investment banking. Its comprehensive range of services caters to various clients, including corporate entities, high net-worth individuals, real estate customers, and both private and public sector organizations. Additionally, UBA offers a wide array of financial solutions, such as cash management, treasury services, brokerage, leasing, mobile and online banking, payment services, and other tailored offerings to meet diverse needs.
History:
1855: The establishment of Creditanstalt Bank took place in Vienna, Austria.
2001: Founded HVB Australia Limited as a subsidiary of the German HypoVereinsbank in Sydney, Australia.
2005-2007: HypoVereinsbank was acquired by UniCredit Group, leading to HVB Australia becoming part of UniCredit Group. Renamed UniCredit Bank Australia Limited, it offered institutional and wholesale banking services in Australia and New Zealand.
2014: UniCredit Bank Australia Limited shifted its focus to corporate and institutional banking services.
Present: UniCredit Bank Australia Limited remains a subsidiary of UniCredit Group and continues to serve in this region.
Key Financial Metrics:
| Metric | Value |
| Net Income | €823 million (2022) |
| Total Assets | €107.332 billion (2022) |
| EPS | €3.56 (2022) |
6. Ober Bank
| Key Points |
| Established: 1869 |
| Headquarters: Linz, Austria |
| Area of Operations: Operates primarily in Austria and selected neighboring countries |
| Presence: Austria, Germany, Czech Republic, Slovakia |
Ober Bank is also one of the oldest regional banks operating in Austria. Its mission is to provide services to help private customers and companies achieve their financial goals.
The bank provides financial consultancy services to corporates, insurance, real estate service, leasing, and hire-purchase services. Its strategy and goals include independence and autonomy, advisory services, organic growth, risk management, staff development, long-term liquidity, and sustainable growth.
History:
1869: “Bank für Oberösterreich und Salzburg” was founded in Linz, Austria.
1955: The bank transitioned to a universal business model, establishing a robust corporate and personal banking presence.
1990: Linz Bank expanded its operations to Vienna, Austria’s capital city.
1990-2000s: The bank expanded its scope to encompass international operations, investment banking, asset management, and real estate financing, leveraging innovative technologies.
Present: Oberbank has evolved into a “regional bank at the heart of Europe,” solidifying its position in the financial landscape.
Key Financial Metrics:
| Metric | Value |
| Net Income | €243.3 million (2022) |
| Total Assets | €26.798 billion (2022) |
| Equity | €3546.9 million (2022) |
7. HYPO NOE Landesbank
| Key Points |
| Established: 1888 |
| Headquarters: St. Pölten, Austria |
| Area of Operations: Lower Austria, Austria |
| Presence: Operates primarily in the Lower Austria region |
HYPO NOE Landesbank, Austria’s largest and oldest mortgage bank, operates mainly in Austria, Germany, and select European Union regions.
It offers services to public sectors, small and medium-sized enterprises, corporate clients, real estate businesses, and investors. Recognized by the sustainability rating agency ISS ESG, HYPO NOE bank is Austria’s leading sustainable regional bank. Its commitment to sustainability sets it apart and highlights its dedication to responsible banking practices and environmental stewardship.
History:
1888: Landes-Hypothekenanstalt für Niederösterreich was founded as part of Landesbank, with 26% ownership by Österreichische Volksbanken-Aktiengesellschaft.
1998: The bank underwent a division, resulting in HYPO Investmentbank AG and Niederösterreichische Landesbank-Hypothekenbank Aktiengesellschaft (HYPO Landesbank).
2004-2006: Merger with “NÖ Landesbank AG” led to the formation of “HYPO NOE Gruppe Bank AG,” with HYPO NOE Gruppe Bank AG becoming the sole owner of “NÖ Versicherung AG.”
2009: Integration of “HYPO NOE Landesbank AG” into HYPO NOE Gruppe Bank AG occurred.
2017: Full merger between HYPO NOE Gruppe Bank AG and HYPO NOE Landesbank AG, operating under HYPO NOE Landesbank für Niederösterreich und Wien AG.
Key Financial Metrics:
| Metric | Value |
| Net Income | €47.127 million (2022) |
| Total Assets | €15.121 billion (2022) |
| Equity | €790 million (2022) |
Interesting Facts
| Bank | Interesting Facts |
| Erste Group Bank | It is the first Austrian bank to receive the prestigious “Top Employer” award. |
| Raiffeisen Bank International AG | It operates the largest banking network in Central and Eastern Europe. |
| UniCredit Bank Austria AG | It is the first bank in Austria to introduce a biometric banking app for facial recognition. |
| OberBank AG | It is one of the few banks in Austria that has a dedicated department for art and cultural affairs. |
| BAWAG P.S.K | It is the oldest bank in Austria, tracing its roots back to 1882. |
| HYPO NOE Gruppe | It is the largest provider of residential construction loans in Lower Austria. |
| Oesterreichische Nationalbank | It has one of the largest collections of gold reserves in the world. |
Challenges
1. Oesterreichische Nationalbank (OeNB)
Inflation caused by the Covid-19 pandemic and Russia’s war against Ukraine has increased interest rates, resulting in higher expenses.
Rising interest rates resulted in the loss of OeNB when the costs for compensating deposits exceeded the interest revenue it generated. Also, increasing income from various portfolios has led to losses for the OeNB.
2. BAWAG
In 2006, investors/creditors of Refco sued BAWAG for over $1.3 billion. They said that BAWAG has helped Refco’s former CEO hide fraudulent transactions since at least 2000.
They also alleged that BAWAG owned more of Refco than it had told the creditors in regulatory filings. Later that year, BAWAG, Refco, and Refco creditors agreed to a settlement. This scandal resulted in a loss of customer trust and a damaged reputation for the bank.
3. Ober Bank
During the banking boom in Eastern Europe in the 1990s, many banks believed that expanding into the region was the key to growth. However, Oberbank took a different approach and expanded westward towards Bavaria, despite facing criticism for its decision.
This decision was successful, and under the leadership of C.E.O. Franz Gasselsberger, Oberbank remained profitable and did not require a government bailout during the 2008 financial crisis.
4. HYPO NOE
In 2007, Hypo Investment Bank invested about €800 million in Augustus Funding Ltd., located in Dublin, which gave them a 20% ownership stake. The bank also took a risk on about €40 million of that investment.
However, this investment was above the limit Oesterreichische Nationalbank (OeNB) and the Financial Market Authority (FMA) set.
As a result, FMA imposed a penalty of €58 million in 2011, which Hypo Investment Bank paid and accounted for in their financial statements. Hypo Investment Bank contested this requirement and took the case to the Administrative Court. In 2013, the court ruled in favor of Hypo Investment Bank, and the bank got back the total penalty amount.
Recommended Articles
This article is a guide to Top Banks in Austria. Here we have discussed the top 8 banks in Austria with their structure. You may also look at the following articles to learn more:
