Apr
26
Austrian Bank Woe Migrates West to Costly Home-Market Branches
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Costs outshine biggest profit sources at Austrian lenders
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Central bank sees 25,000 jobs, third of total, eventually shed
When Austrian banks start reporting first-quarter results next week, investors will look for plans to cut ballooning costs in a home market that was once eclipsed by high-profile expansion in eastern Europe.
UniCredit Bank Austria AG, Raiffeisen Bank International AG and Erste Group Bank AG face investor concern about overstaffing that was left to fester amid tough Austrian labor laws and more profitable and exciting markets abroad. The problem has become more acute as operating costs in Austria outpace the banks’ two most important profit sources — interest income and fee income, according to central bank data for the past two years…
Austrian Bank Woe Migrates West to Costly Home-Market Branches
