Press release 31.10.2007
BAG and GFKL enter strategic partnership
- GFKL acquires share in subsidiaries of BAG
- HFI and VR Inkasso to be future joint ventures of BAG and GFKL
- Companies to jointly tap market potential in bad debt management
AG Bankaktiengesellschaft (Hamm), the centre of competence for processing and purchasing problem loans in Germany's cooperative banking sector (Genossenschaftlicher FinanzVerbund), and GFKL Financial Services AG (Essen), a leading provider in the fields of leasing and debt collection, have agreed upon a strategic partnership. The purpose of the new alliance is to jointly manage non-performing, written-off loans. In the course of the cooperation, GFKL Financial Services AG secures a share of 48% in both HFI Finanz- und Investitions-Beratungsgesellschaft Hamm mbH (HFI) and VR Inkasso GmbH. Both companies were previously members of the BAG Bankaktiengesellschaft group.
Earlier, BAG had already outsourced all its activities relating to the collection of written-off, unsecured loan receivables to HFI. In addition to BAG, HFI's clients include a large number of Volksbanken and Raiffeisenbanken from the cooperative banking sector. Extending the collection business, henceforward the partners will also acquire written-off loan receivables through the VR Inkasso joint venture.
Udo Wittler, CEO of BAG comments: "By selling their written-off, unsecured loans, the banks in our sector generate additional income. We provide the platform to do so. The cooperation between BAG and GFKL will also create synergy effects from which our customers profit in form of tailor-made products and prices."
Dr. Peter Jänsch, CEO of GFKL Financial Services AG, states: "GFKL holds almost ten years of experience in managing loans in default. By investing in HFI and VR Inkasso, we are hoping to expand our business significantly in the cooperative banking sector. In particular, we hope to increase purchases of bad debt."
The strategic cooperation of BAG and GFKL marks the joining of two strong and experienced market players in the business of unsecured loan receivables. Their partnership is based on two key success factors: the established market position of BAG in the cooperative banking sector and the valuation, financing and IT expertise of GFKL.
About BAG Bankaktiengesellschaft
BAG Bankaktiengesellschaft is a subsidiary of Bundesverband der Deutschen Volksbanken und Raiffeisenbanken e.V. (BVR) and has an unrestricted full banking license as defined by the German Banking Act. More than 300 employees work at BAG's head office in Hamm and its four branch offices as well as its direct and indirect subsidiaries. Thanks to its 20 years of experience, BAG Bankaktiengesellschaft is the centre of competence in the Genossenschaftlicher FinanzVerbund for problem loans.
About GFKL Financial Services AG
GFKL is a fast-growing financial services provider focusing on leasing and collection services. GFKL is able to assist clients in financing investments, organizing processes and implementing measures for safeguarding liquidity during every phase of the business process. In the financial year 2006, GFKL posted consolidated sales of more than €1 billion with over 2,000 employees.
Press contact:
René Kunsleben
Head of the Office of the Executive Board
Phone.: +49 (0)2385/942-180
Facsimile: +49 (0)2385/942-291
E-Mail: kul@bankaktiengesellschaft.de
www.bankaktiengesellschaft.de
Katrin Schwarz
Head of Corporate Communications
and Investor Relations
Phone.: +49 (0)201/102-1192
Facsimile: +49 (0)201/102-1102-462
E-Mail: pr@gfkl.com