The Austrian Cooperative Association (ÖGV) provided information about the realignment of the 34 regional Volksbank cooperatives with their current 460,452 members in a press conference on Tuesday. “After the successful restructuring and the full repayment of the state aid, the Volksbanken once again belong 100 percent to those customers who hold shares as cooperative members. They are our strongest asset for the future and guarantee anchoring in the regions,” said ÖGV CEO Peter Haubner.
11.4 million euros distributed to cooperatives and members
This ownership structure also means that the money generated by the Volksbanks remains entirely in the region and does not flow to foreign investors or hedge funds. Haubner: “On the one hand, we are strengthening our equity base and making provisions for the future. On the other hand, this year a total of 11.4 million euros flowed in the form of dividends to the Volksbank cooperatives or directly to the members.” What you need to know is that three of the nine institutions in the Volksbanken association are held directly by the members, the remaining six are stock corporations that are owned by regional investment cooperatives; the customers are then members of them.
A dividend cycle to strengthen the location
Now what happens to these dividends? Although each cooperative decides autonomously, this year they agreed on a common strategy with a clear commitment to the funding mandate, which is also anchored in the statutes, said Haubner. He described the cooperative dividend cycle as the centerpiece: According to this, the funds generated by the Volksbanks are intended to support targeted regional projects via the cooperatives. This in turn serves to strengthen the business location, which ultimately leads to more business for the Volksbanks.
Regional funding using the example of Styria
In a press conference, Monika Cisar-Leibetseder, General Director of Volksbank Steiermark, illustrated what this funding could look like in concrete terms. Together with its Styrian cooperatives, the bank launched an initiative in the summer to support projects in the areas of energy transition, sustainability or financial education with up to 7,500 euros. A total of 300,000 euros are available for this purpose this year. The cooperative members decide by vote which projects will ultimately be awarded the contract. Cisar-Leibetseder: “We want to make the Styrian regions sustainably better; that is our reinterpretation of the cooperative funding mandate.”
Offensive for new members
ÖGV board chairman Haubner looks to the future: “Our goal is to convince even more Austrians of the power of the cooperative idea. That’s why we’re starting an offensive for new members.” The attractive “Volksbank Owners’ Club” brand was developed for this purpose and has already been rolled out in Vienna, in most regions of Lower Austria, throughout Styria and in Vorarlberg. “Not all banks are the same. It makes a huge difference who owns a financial institution. Instead of shareholder value, pure profit maximization and dividends for hedge funds, the Volksbanks focus on regional member value,” concludes Haubner.
About the ÖGV
The ÖGV is the service and auditing association of the Volksbanks and commercial cooperatives in Austria – including well-known brands such as Expert, Red Zac, ABAU and APA.