Founded in 1896, Hypo Group Alpe Adria has grown from strong roots that are embedded in more than 100 years of history. Kärntner Landes- und Hypothekenbank, as it then was, concentrated mainly on financing public institutions, on housing construction and the issue of mortgage bonds. In 1982 it became a financial services provider. The first step in the Bank’s international expansion came in 1986, with a leasing company in Udine, Italy. The Bank’s business was transferred to a public limited liability company in 1991. One year later, Grazer Wechselseitige Versicherung AG took an interest, to become the second-largest shareholder after Kärntner Landes- und Hypothekenbank-Holding. This was the beginning of a new era for Hypo Group Alpe Adria.

      The expansion of Hypo Group Alpe Adria into its core market, the Alps to Adriatic region, followed step by step. Following Austria’s accession to the EU in 1995, the Group was the first Austrian bank to establish a branch under EU law, in Vicenza, Italy. In the same year leasing companies were started in Celje in Slovenia and Zagreb in Croatia. Banking followed a year later. The years that followed saw the opening of further leasing outlets in Slovenia (Ljubljana, Koper and Maribor) and the expansion of the branch network in Italy (Udine, Brescia, Conegliano and Lumezzane) and Croatia (Pore?, Split, Rijeka, Pula and Zadar). In 1997 the number of staff at Hypo Group Alpe Adria breached the 500 barrier, accompanied by the start of construction of the present Klagenfurt headquarters, which was completed in three phases by 2002.
      At the beginning of the new millennium Hypo Group Alpe Adria already had over 1,000 employees. In the following year it entered the market in Bosnia and Herzegovina with a leasing company and an interest in Auro- Banka d.d. Mostar.
      Independent, international rating agencies confirm the Group’s consistent performance in the international capital markets. 
      In 2002 Hypo Group Alpe Adria’s expansion took it into Liechtenstein and Serbia and Montenegro. The purchase of Kristal Banka d.d., the cooperation with the European Investment Bank and the placing of an EUR 650 million benchmark bond rounded out the highlights of the year.
      The Group’s dynamic progress continued in 2003, when it was acclaimed as investor of the year in Bosnia and Herzegovina, opened a leasing branch in Munich, founded the Biogaspark Alpe-Adria and launched tourism initiatives in Carinthia, starting the Schlosshotel Velden project. In 2004 it numbered some 4,000 employees at over 200 locations and counted among the fastest growing businesses in South Eastern Europe. 
      In the first half of 2005 the Group successfully placed a EUR 500 million pre-IPO convertible bond through Kärntner Landesund Hypothekenbank-Holding AG, which attracted lively interest from international stock and bond investors. Hypo Alpe Adria staff foundation acquired a 5 % interest and became the third owner, alongside Kärntner Landesholding and Grazer Wechselseitige Versicherung AG. 
      In 2006 Hypo Group Alpe Adria continued to expand and integrate its networks in existing markets. Entry into the Bulgarian and Hungarian market means that the Group now operates in eleven countries. A representative office has also been set up in London, to provide better access to the international capital markets. For the first time the Banking Group’s customer base now exceeds the million mark and it now employs more than 6,100 staff. As part of a capital increase, private investor group Berlin & Co Capital S.à.r.l. acquired a 4.76 % interest in Hypo Group Alpe Adria in December 2006.