Willibald Cernko, the CEO of Bank Austria, said that 2012 was tough year for the banking sector as the Bank has recorded net losses of _ 676m.

However, the Central and Eastern Europe (CEE) has showed profits of six percent before tax of _ 1.712bn as compared to 2011. Austria encountered economic slowdown in the previous years and had a big impact on customer business, asserted Cernko.

Additional costs were incurred by tightening of regulatory requirements and increase in bank levies. However, Cernko said that he was happy that they were able to improve their operating performance slightly more. He also said that weak economic trends led to recognition of losses, equity investments and extra goodwill impairment charges in financial statements.

He affirmed that that the group has taken a decision to sell their equity investment in the bank in Kazakhstan. "We thereby aim to further reduce risks, strengthen the capital base and invest the capital which becomes available through this measure in those CEE countries with the strongest potential for growth", he added.

He talked that the decision makes no change to their commitment to region of Central and Eastern Europe. Also, he expressed his wish of expanding their leading position in the region through allocating capital optimally.