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Hypo Group Alpe Adria

 

Hypo Group Alpe Adria

Hypo Group Alpe Adria
Public
Industry Finance and Insurance
Founded 1896
Headquarters Klagenfurt, Austria
Products Commercial banking, Investment banking, Leasing, Asset management
Website www.hypo-alpe-adria.com

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 Austria, Germany, Italy, Slovenia, Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Republic of Macedonia, Bulgaria, Hungary and Ukraine.[1]

Contents

  • History 1
    • Business: Banking and Leasing 1.1
    • Hypo Alpe-Adria-Bank d.d. Mostar 1.2
    • Hypo Alpe-Adria-Bank a.d. Banja Luka 1.3
  • See also 2
  • References 3
  • External links 4

History

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 the BayernLB bought 50% plus one share (controlling stake) of HGAA for 1.63 billion Euros.[2]

On 14 December 2009, BayernLB, Kärntner Landesholding and Grazer Wechselseitige Versicherung sold their stakes in the bank to the Austrian government for 1 Euro each.[3] The bank was nationalised by the Austrian government to avert a bank collapse.[4] 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. [5]

The headquarters, which accounts for around 500 employees, is located in Klagenfurt, Austria and is responsible for controlling the subsidiary banks in Austria, Italy and South-Eastern Europe as well as those markets from which the bank is currently withdrawing (wind-down markets).[6]

As of February 2014, the HGAA situation was unsolved,[7] causing Chancellor Werner Faymann to warn that its failure would be comparable to the 1931 Creditanstalt event.[8]

In March 2014, the Austrian government decided to split HGAA into a Balkans banking unit, an Italian business and a bad bank, Heta Asset Resolution. The Balkans unit is to be sold in 2015 to Advent International (80%) and the European Bank for Reconstruction and Development (20%). It was intended to wind down Heta Asset Resolution over a period of years.[9] One consequence of the collapse of Hypo Alpe-Adria-Bank International AG is that Austria has agreed to pay 1.23 billion euros ($1.36 billion) to the German state of Bavaria.[10]

On 1 March 2015 the Financial Market Authority of Austria imposed a moratorium on debt and interest payments by Heta Asset Resolution on unguaranteed debt, after an audit found that it had a capital shortfall of up to 7.6 billion euros.[11]

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

See also

References

  1. ^ "Group Structure: Material Subsidiaries as of 31.12.2012". Hypo-alpe-adria.com. May 5, 2013. 
  2. ^ "BayernLB übernimmt Hypo Alpe Adria".  
  3. ^ (German) "BayernLB kauft sich von Hypo Group Alpe Adria frei", Handelsblatt (in German), December 14, 2009 
  4. ^ Reuters: "Austria nationalises ailing Hypo"
  5. ^ (German) "Die Hypo und die Rechenkünstler", Die Presse (in German), 2014-02-14 
  6. ^ "Austria nationalises ailing Hypo -FinMin". Reuters. 2009-12-14. Retrieved 2014-01-04. 
  7. ^ bloomberg.com: "Hypo Alpe Debt Cut Four Steps as a kind of Insolvency Not Ruled Out" 15 Feb 2014
  8. ^ bloomberg.com: " Faymann Evokes 1931 Austria Creditanstalt Crash on Hypo Alpe" 17 Feb 2014
  9. ^ Michael Shields (2014-12-23). "Austria sells Hypo Balkans network to private equity firm Advent". Reuters. 
  10. ^ Weber, Webb & Comfort, "Austria to Pay Bavaria 1.2 Billion Euros in Heta Deal", Bloomberg Business, 7 July 2015. (Retrieved 10 July 2015). http://www.bloomberg.com/news/articles/2015-07-07/austria-to-pay-bavaria-1-2-billion-euros-in-heta-deal
  11. ^ """Austria imposes debt moratorium on Heta "bad bank. Reuters. 2015-03-01. 

External links

  • Official website
  • Hypo Alpe Adria-A Bank Scandal in Austria
  • Hypo-Alpe-Adria-Bank (Scandalpe): Update of the Scandal
  • Hypo Alpe-Adria Bank Headquarters by Morphosis
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