Reuters: Private Equity: Austrian Bank levy keeps BAWAG PSK profit flat

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Austrian Bank levy keeps BAWAG PSK profit flat Mar 16th 2012, 09:15 VIENNA, March 16 | Fri Mar 16, 2012 5:15am EDT VIENNA, March 16 (Reuters) - Austrian lender BAWAG P.S.K. boosted 2011 profit before tax and bank levies 13 percent to 156 million euros ($203.9 million) as revenues rose while loan-loss provisions and impairments fell nearly a quarter, it said on Friday. But net profit at the bank owned by Cerberus Capital Management LP was flat at 122.5 million euros after it paid 20.2 million for an Austrian bank levy introduced last year. The bank said it paid a coupon of 51.2 million euros on the 550 million euros in non-voting capital it got from Austria during the 2008/09 financial crisis. "The remainder of the profit is deferred in order to further strengthen the capital," it added in a statement. Cerberus bought BAWAG from the Austrian Trade Union Federation in 2007 after a banking scandal. BAWAG's tier 1 capital ratio rose to 9.6 percent of risk-weighted assets at the end of last year from 8.9 percent a year earlier. It said it already complied with Basel III bank capital rules that will take effect in 2013. BAWAG booked a 58 million euro impairment on its stake in Hungarian bank MKB. Its MKB stake has fallen to 4.6 percent. It said it expected Europe's sovereign debt crisis to have an "insignificant impact" on its capital this year after its exposure to high-deficit EU countries fell to a fair value of 23 million euros at the end of 2011. It said this month it had contributed all its nominal 53 million euros in Greek debt to the country's bond swap.

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