Raiffeisen to buy specialist units to cut more costs
VIENNA (Reuters) - Raiffeisen Zentralbank RZB.UL, the parent of Raiffeisen Bank International (RBIV.VI), plans to bring four of its eight independent specialist units into the wider group to cut costs.
The Austrian banking group said on Thursday the move would cut its capital adequacy ratio by 0.2 percentage points but save 25 million euros ($34 million) a year from 2017, part of a wider cost-cutting drive by the group.
RZB's core Tier 1 capital ratio was 10.2 percent of risk-weighted assets at the end of June.
The bank's international arm RBI, a leading lender in eastern Europe, said on Tuesday it aimed to slash costs by up to 450 million euros by the end of 2016.
"After five years of crisis it is high time to question the existing set-up," said RZB executive Johannes Schuster, who runs marketing, customer relations, treasury and distribution.
RZB will buy the parts it does not already own of Raiffeisen Capital Management (KAG), company financing bank Raiffeisen Factor Bank, and the house building finance and savings banks Raiffeisen Wohnbaubank and Raiffeisen Bausparkasse.
The seller is the group of Raiffeisen Landesbanken, which owns RZB.
RZB plans to cut 10 percent of jobs at these plus three other specialist units, a total of about 120 jobs. A further 400 to 500 staff will be brought into group-wide departments such as human resources, legal, marketing and IT. ($1=0.7403 euros)
(Reporting by Angelika Gruber; Writing by Georgina Prodhan; Editing by Greg Mahlich)
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