VIENNA, Nov 28 (Reuters) - Partially state-owned Austrian lender Volksbanken AG (VBAG) forecast it would make losses in 2014 and 2015 under local accounting rules as it carries out a drastic European Union-mandated restructuring process.
"VBAG's current medium-term planning shows that negative single entity results (based on local GAAP) are to be expected until 2015 at least. Therefore interest payments on supplementary capital (upper tier II capital) are unlikely from today's viewpoint until 2016," it said on Thursday.
The bank, one of six Austrian lenders to come under direct supervision of the European Central Bank next year, reported a 66.8 million euro ($90.7 million) group loss after tax and minorities interests in the first nine months but said its tier 1 capital ratio rose to 13.0 percent from 10.9 percent at the end of 2012.
($1 = 0.7367 euros) (Reporting by Michael Shields)