Frankfurt Austrian Anadi Bank is separating from analog banking and will focus on digital business in the future. To this end, the Austrian Anadi Bank will start a sale process in the form of a tendering process for traditional banking activities with the areas of retail banking, corporate banking and public finance. Equity of approximately EUR 150 million, banking license and approximately 10,000 customers will remain in the digital bank.
According to CEO Christian Kubitschek, the company will be different from its competitors in the digital banking industry in several respects. This includes loans and tablet banking from tobacco shops. “So we are a fintech with full banking DNA,” Kubitschek said in an interview with Handelsblatt.
Trafik is an Austrian institution which is a combination of a kiosk and a mini supermarket. Every day, about one million customers visit small shops that sell tobacco products, newspapers and magazines, and other everyday items.
According to Kubitschek, his bank for online money transactions is currently present in more than 100 tobacco stores. According to the bank, at least 100 of the current 230 jobs will remain in the digital bank as part of the sales process. It is also open to cooperation with German institutes and fintechs. “We are opening up our know-how – for loans and deposits, for example – to external banks,” said Kubitschek.
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According to the bank director, digital consumer credit and financing for German SMEs will also be further developed. 90 percent of the loans have a variable interest rate, so significant additional income is expected from changes in interest rates. The digital bank is expected to break even in 2024.
Anadi Bank expects a lot of interest
The company up for sale has approximately 50,000 customer relationships and total assets of approximately EUR 2.2 billion. According to its own statement, Anadi Bank is set to develop in its traditional business: with a forecast half-yearly result for 2022 of almost five million euros, the annual result for 2021 will more than quadruple. An extrapolation for the full year 2022 gives an after tax profit of up to twelve million euros if the interest rate environment remains the same.
In addition, the covered bonds issued by the bank will expire in the next few years – according to the institute, only in 2021 the annual result would be approximately EUR 8 million higher without these maturing bonds. Therefore, the bank’s management expects a lot of interest in the tender process. “We expect a lively interest in purchasing a traditional banking business, initially from a dozen or so houses. In addition to addresses from Austria, tenderers from Germany are also welcome, ”said Kubitschek.
Anadi Bank is supported in the tender process by Confidum Financial Management Consultants. The deadline for submitting initial bids is the end of July 2022. The closing of the transaction is planned for the third quarter of this year.
Under its old name, Hypo Alpe Adria, the cash register gained notoriety during the Great Financial Crisis. BayernLB took over the bank from the federal state of Carinthia in 2007, and two years later a German state-owned bank had to return a sick bank to Austria in an emergency.
The bank speculated on the direction of expansion in the Balkans. After his return to Austria, there was a year-long legal dispute over the sharing of the burden of billions from the imminent collapse of the Hypo Alpe Adria. In late 2013, a group of Indo-British investors led by Sanjeev Kanoria seized the Austrian remains of Hypo Alpe Adria.
Anadi is the name of the holding through which the Kanoria family of entrepreneurs bought the bank. Kubitschek has been managing the Austrian bank Anadi since July last year.
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