Analysis of financial key indicators
Balance sheet growth
3. Analysis of financial key indicators
Until 2006 the consolidated financial statements of Hypo Group Alpe Adria were drawn up in accordance with the provisions of the Austrian Enterprise Code (UGB), as amended, and the Austrian Banking Act (BWG). These consolidated financial statements – for the year ended 31 December 2007 – have been draw up for the first time in accordance with International Financial Reporting Standards (IFRS). The comparative figures for 2006 have been prepared to comply with the same accounting principles. Due to the changeover to IFRS, assets and earnings indicators published in the past are only to a limited extent comparable.
At the end of 2007 the IFRS scope of consolidation including the Austrian Group holding company and 119 companies. Of this total, 33 were based in Austria, and 86 elsewhere.
3.1 Balance sheet growth
Hypo Group Alpe Adria continued its uninterrupted growth in 2007, playing a pioneering role in the development of the dynamic economies in the region it serves. The Group’s total assets have increased over the past years with its expansion across the region. The majority of this growth has been organic, with 90 % of assets coming from newly formed banks and leasing companies and less than 10 % coming from acquisitions. Consistent application of the strategy of organic growth, and strong growth in lending by the individual Hypo Group Alpe Adria companies, is once again reflected in a significant increase in total assets in 2007.
At EUR 37.9 bn, the total assets of Hypo Group Alpe Adria at 31 December 2007 were 22.4 % up on the previous year (2006: EUR 31.0 bn).
The growth in assets consisted of increased loans and advances to customers, which were up 24.7 % from EUR 20.0 bn to EUR 24.9 bn (net of risk provisions on loans and advances). The risk-averse approach introduced by new majority shareholder BayernLB led to a thorough reappraisal of the Group’s lending portfolio, and is reflected in a sharp increase in risk provisions on loans and advances, which in 2007 amounted to EUR 0.7 bn, an increase of 44.5 %.
