Hypo Group Alpe Adria

For the "bad bank" that the current HGAA was spin-off from, see Heta Asset Resolution.
Hypo Group Alpe Adria
Private
Industry Finance and Insurance
Predecessor Balkans banks of Hypo Alpe-Adria-Bank International
Founded 1896
2014 (spin-off)
Headquarters Klagenfurt, Austria
Products Commercial banking, Investment banking, Leasing, Asset management
Brands Hypo Alpe-Adria-Bank
Profit (€97.4 million) (2014)
Total assets €8.032 billion (2014)
Total equity €1.229 billion (2014)
Owner
Capital ratio 20.1% (Tier 1)[1]
Website Official website

The Hypo Group Alpe Adria (HGAA) is an Austrian banking group with numerous cross-border activities in the Alps-Adriatic region. The group is active in Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro.

In the past Hypo Alpe-Adria-Bank International also actives in Austria, Germany, Italy, Bulgaria, Hungary and Ukraine.[2] However, due to European debt crisis, the group was split into HBI-Bundesholding AG (consists of subsidiary Hypo Alpe-Adria-Bank S.p.A.; Italy), the Balkans banks (Hypo Group Alpe Adria AG) and a bad bank Heta Asset Resolution AG (ex-Hypo Alpe-Adria-Bank International AG) in 2014. The leasing subsidiary of former Hypo Alpe-Adria-Bank International in Italy, Bulgaria, Serbia, Montenegro and Macedonia were retained in the bad bank.[3] The Austria branches was sold in 2013 (now Austrian Anadi Bank).

History

The bank was found in 1896 as Landes-und Hypothekenbank. In 1990s explosively expanded into the Alps-to-Adriatic region. In 2004 the company was renamed into Hypo Alpe-Adria-Bank International AG, as a holding company for the "Hypo Alpe-Adria-Bank" subsidiaries.[3]

Hypo Alpe Adria has been present in the market of Bosnia and Herzegovina (BiH) since 2001, when it took over Auro Bank Mostar, which thereafter was operating under the name of Hypo Alpe-Adria-Bank d.d., Mostar. A year after, Hypo Alpe Adria took over Kristal Bank Banja Luka, which has been operating under the name of Hypo Alpe-Adria-Bank a.d., Banja Luka since 2003.

In May 2007 BayernLB, Bavaria-state-owned bank bought 50% plus one share (controlling stake) of Hypo Alpe-Adria-Bank International for 1.63 billion Euros.[4]

European debt crisis and the demerger of the group

On 14 December 2009, BayernLB, Kärntner Landesholding (Carinthia state holding) and Grazer Wechselseitige Versicherung sold their stakes in the bank to the Austrian government for 1 Euro each.[5] The bank was nationalised by the Austrian government to avert a bank collapse.[6] It is expected that between 13 and 19 billion Euros of outstanding loans will never be paid back; to avoid bankruptcy, the Austrian taxpayers will have to cover this loss. [7]

The headquarters, which accounts for around 500 employees, is located in Klagenfurt, Austria and was responsible for controlling the subsidiary banks in Austria, Italy and South-Eastern Europe as well as those markets from which the bank was withdrawing (wind-down markets).[8]

In 2013 the domestic branches of the bank in Austria were sold to Anadi Financial Holdings, and renamed to Austrian Anadi Bank.[9]

As of February 2014, the Hypo Alpe-Adria-Bank International situation was unsolved,[10] causing Chancellor Werner Faymann to warn that its failure would be comparable to the 1931 Creditanstalt event.[11]

In March 2014, the Austrian government decided to split Hypo Alpe-Adria-Bank International into a Balkans banking unit (Hypo Group Alpe Adria A.G.; formerly: Hypo SEE Holding AG), an Italian business (HBI-Bundesholding A.G.) and a bad bank, Heta Asset Resolution. The Balkans unit was sold in December 2014 to Advent International (80%) and the European Bank for Reconstruction and Development (20%).[12]

Business: Banking and Leasing

The main line of business involves receiving "deposits" for citizens, businesses, public institutions, and local self-governance units, as well as retail, corporate, public and self-governance unit crediting, rendering services of domestic and international payment operations, issuing "letters of credit" and guarantees, services of Custody, "corporate finance", depository bank services for "investment funds", brokerage services for local and international "capital markets", card business, e-banking services for legal and private persons, bank assurance services, leasing services and products for legal and private persons.

Hypo Alpe-Adria-Bank d.d. Mostar

Type: joint stock company Industry: Banking and Finance Seat: Kneza Branimira 2b, 88 000 Mostar, BiH Chairman of the Management Board: Alexander Picker Hypo Mostar

Hypo Alpe-Adria-Bank a.d. Banja Luka

Type: joint stock company Industry: Banking and Finance Seat: Aleja Svetog Save, 78 000 Banja Luka, BiH Chairman of the Management Board: Goran Babić Hypo Banja Luka

References

  1. ↑ "2014 Konzern-Geschäftsbericht" [2014 Annual Report] (PDF) (in German). Hypo Group Alpe Adria. 28 May 2015. Retrieved 21 February 2016.
  2. ↑ "Group Structure: Material Subsidiaries as of 31.12.2012". Hypo-alpe-adria.com. May 5, 2013. Archived from the original on May 2, 2013.
  3. 1 2 "2014 Annual Financial Report" (PDF). Heta Asset Resolution. 26 June 2015. Retrieved 21 February 2016.
  4. ↑ "BayernLB übernimmt Hypo Alpe Adria". Handelsblatt (in German). May 22, 2007.
  5. ↑ (German) "BayernLB kauft sich von Hypo Group Alpe Adria frei", Handelsblatt (in German), December 14, 2009
  6. ↑ Reuters: "Austria nationalises ailing Hypo"
  7. ↑ (German) "Die Hypo und die Rechenkünstler", Die Presse (in German), 2014-02-14
  8. ↑ "Austria nationalises ailing Hypo -FinMin". Reuters. 2009-12-14. Retrieved 2014-01-04.
  9. ↑ "Kanoria buys Hypo’s domestic banking arm". Financial Times. 31 May 2013. Retrieved 21 February 2016.
  10. ↑ bloomberg.com: "Hypo Alpe Debt Cut Four Steps as a kind of Insolvency Not Ruled Out" 15 Feb 2014
  11. ↑ bloomberg.com: " Faymann Evokes 1931 Austria Creditanstalt Crash on Hypo Alpe" 17 Feb 2014
  12. ↑ "Advent International and EBRD enter agreement to acquire Hypo Group Alpe Adria AG (Southeast Europe banking network)". advent international. 23 December 2014. Retrieved 21 February 2016.

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