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UniCredit Bank Austria Sees Credit Slowdown in Central Europe

August 03, 2012

UniCredit (UCG) Bank Austria AG, which manages most of the Italian lender’s business in the developing economies of Europe, said there are signs that credit growth in central Europe is slowing down again.

“There are some signs of a slowdown in demand for credit in central Europe in particular,” Bank Austria’s Chief Financial Officer Francesco Giordano told journalists in Vienna, referring to the region including Hungary and the Czech and Slovak republics. “However, we are maintaining or increasing market share.”

In Turkey, where Bank Austria part-owns Yapi ve Kredi Bankasi AS, a slowdown in the economy is likely to result in more bad debt, forcing banks to set aside more reserves, Giordano said.

“It is likely that we and the rest of the banking system will see some moderate deterioration in credit charges,” he said. “But you have to keep in mind this starts from an exceptionally low level, so this is more a normalization than a sign of increased tension.”

Bank Austria said second-quarter net income declined 17 percent 247 million euros, from 298 million euros a year earlier, as revenue fell slightly.

To contact the reporter on this story: Boris Groendahl in Vienna at

To contact the editor responsible for this story: Frank Connelly at

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