“You raise capital when you need it the least” was the principle followed by the management of Oberbank when it reached the decision to carry out three highly successful capital increases in the excellent business years 2015 and 2016.
It was easy to explain this move:
- Continue growth and expansion without constraints
- Achieve the target CET1 ratio of 16%
- Outperform regulatory capital requirements
Expectations were met 100%. With the third capital increase completed in Q4 2016, the bank placed more than three million new ordinary shares on the market and acquired 700 new shareholders. The free float widened by 10%-points from 26% to 36% through the capital increases of 2015 and 2016, making Oberbank a genuine publicly traded company today.
Since 2011, the bank’s Common Equity Tier 1 capital has doubled to over EUR 2 billion (as at 31 Dec. 2016) and the CET1 ratio is among the top ratings for European banks. This is also reflected in the market value of Oberbank, of course. At a market capitalisation of over EUR 2 billion, Oberbank is one of the 20 most valuable companies in WBI index of the Vienna Stock Exchange. The market capitalisation of Oberbank has more than tripled since 2005. Here as well, the bank’s management has exhibited strategic wisdom and secured the sustainable expansion of Oberbank.
