On a stable footing

Hypo Vorarlberg is pleased with strong profits

Despite some negative headlines, Hypo Vorarlberg is still doing very well economically.

(Bild: Hypo BanK Vorarlberg)

From an economic perspective, the first half of 2024 was very satisfactory for Vorarlberger Landesbank. The high equity ratio is particularly impressive. 

At EUR 58.4 million before taxes, the Landesbank's earnings as at June 30, 2024 were not only solid, but also 22.4 percent better than in the same period of the previous year. By contrast, the Group's total assets fell slightly to around EUR 15.2 billion (-3.6%). While demand for loans in the Corporate Customers segment was higher than in the previous year, Hypo Vorarlberg recorded a continuing downward trend in the Private Customers segment. This is primarily due to high interest rates and the uncertain economic situation. This is one of the reasons why many customers have increased loan loss provisions. On balance, risk provisions on loans and advances amounted to 14.3 million euros - compared to 4.2 million euros in the previous year. Current and savings deposits fell from 5.1 billion to 4.9 billion euros. Securitized liabilities remained constant at 7.6 billion euros.

"Hypo Vorarlberg's continued high liquidity standard reflects the high level of customer confidence in our Bank," summarized Chairman of the Managing Board Michel Haller. The economic situation is good and "sufficient provision has been made for risks".

Interest and commission income are also stable. Hypo is also on track in terms of equity: as of June 30, 2024, own funds amounted to EUR 1.7 billion. The total equity ratio was 19.65 percent. This means that own funds are well above the statutory minimum requirement. Following the recent disputes in connection with the Signa bankruptcy, this should also reassure the owners of the Landesbank.