Expansion & Industrialization (1850–1918)
1873
On May 9, share prices on the Vienna Stock Exchange plummet dramatically, bringing the euphoria of the Gründerzeit to an abrupt end. Around half of the companies founded in recent years go bankrupt, and only a quarter of the numerous banks survive. Erste österreichische Spar-Casse is also not spared from the turmoil and suffers heavy losses in the mortgage business (real estate financing). However, after the stock market crash, the savings bank benefits from an influx of new capital that is now looking for a safe investment.
Black Friday on the Vienna Stock Exchange on May 9, 1873, image source: https:// de.wikipedia.org/wiki/Datei:Schwarzer_Freitag_Wien_1873.jpg
1875–1900
The amount of money deposited at the savings bank increases year after year, as does the number of savers. As profits rise, so too do the available surpluses, which are regularly donated to charitable organizations and cultural causes. Significant sums go to the Hospital of the Brothers of Mercy, the Women's Employment Association, and the Society for Music Lovers, for example.
List of donations to the First Austrian Savings Bank, 1895
1914–1918
To finance World War I, government bonds—war bonds—are issued. Contrary to their traditional business practices, savings banks also enter the securities business. The lost war and the ensuing inflation mean that subscribers to war bonds receive virtually nothing back from their invested money.