The bank is currently fighting for its continued existence – with a strategic realignment and with an attempt to get new investors on board. Today, Monday, the Annual General Meeting will take place, at which an increase in the share capital of up to 50 percent will be approved. The capital increase should pave the way for new entrants.
As early as 2019, the car sales crisis hit the car and leasing financiers hard and caused the bank heavy losses. The corona crisis made matters worse this year. In March, the bank decided to realign it – they wanted to concentrate more on the refinancing of German leasing companies – but this could only be implemented with a delay, according to the semi-annual report.
The implementation of the new product portfolio is underway. Since the middle of the year, the bank has been working on a second core business area: the purchase of receivables, also known as forfaiting. In addition to working on the realignment, the bank wants to strengthen its capital base with new investors. So that potential interested parties can buy new shares at AutoBank, a capital increase is to be decided today at the annual general meeting.
“With the planned capital increases, the CET1 equity ratio of AutoBank AG would be increased and the regulatory capital of the bank would be strengthened in the long term. In addition to the strengthening of the capital base, the product portfolio of AutoBank AG is to be expanded with the inclusion of new investors, and it is thus to be more broadly positioned. “writes the bank in its semi-annual report. “After completion of the planned capital measures, the focus will be on the profitable implementation of the increase in business volume in the core business areas of refinancing leasing companies and forfaiting.”
The management board’s outlook was largely optimistic. It must be seen whether the bank will face bad debts from existing customers, as an increase in insolvencies is to be expected. However, the management does not expect major difficulties for the business partners, “since the leasing companies always have good remarketing opportunities, equity capital and reserves,” said the outlook. “In these difficult times, many companies notice how important sufficient liquidity is, so it can be assumed that new investments in the future will again increasingly be made through leasing instead of through cash flow as before”.
Since the bank had to significantly reduce its risk-weighted assets this year, the net interest result fell from around EUR 3 million to EUR 1.1 million in the first half of the year. Until business starts in the new areas, the interest result will remain burdened, so the bank. In addition, AutoBank is struggling with a high level of excess liquidity, which is why the deposit volume is to be reduced. At the end of the first half of the year, total deposits were EUR 296.63 million, after EUR 322.99 million at the end of the previous year.
Since August, AutoBank has had a supervisor from the Financial Market Authority (FMA) who is supposed to keep an eye on the bank bosses during the restructuring. The administrator and auditor Dorotea Rebmann, who is to be deployed for a maximum of one year, was provided as an early intervention measure, the FMA said at the time.
(Closing) bel / tsk
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