Notes to the Income Statement
Segment reporting
(4) Segment reporting
Segment reporting is adopted in accordance with IAS 14 and provides an overview of the relevant business segments and activities in the geographical markets of the Hypo Group Alpe Adria. It is the aim of segment reporting to explain how business results are generated from the segments.
Refinancing costs of participations in the parent company are allocated to the related segments. The interest rate used is that of long-term debt capital (roll-over estimation) and amounted, in the first half of financial year 2008 to 4.33 % (first half of 2007: 4.42 %).
Hypo Group Alpe Adria chose geographical markets as the primary segment because material risks and rewards come from the countries where the Group is active:
The secondary segment represents the core competences of Hypo Group Alpe Adria and consists of:
In the first half of 2007, Hypo Alpe-Adria-Bank (Liechtenstein) AG (now trading under the name of Alpe Adria Privatbank AG) was still included in the consolidated interim financial statements as a fully consolidated entity. Its income and expenses as well as assets and liabilities being reported in the segments »Other markets« (primary segment) respectively »Banking« (secondary segment). In the first six months of 2007, the company contributed approximately EUR 1.8 million to the net interest result as well as approximately EUR 3.4 million to the fees and commissions result. The expenses for risk provisions on loans and advances amounted to approximately EUR – 0.5 million, while the operating expenses were approximately EUR – 2.9 million. As a result of the sale of 51 % of the shares in this company in December 2007, the bank is now included by means of the at equity method, and the share of the result of the first half of 2008 is reported in unallocated corporate income/expenses.
Over and above the aforesaid, the basis of segment reporting compared with the previous period remained largely unaffected
by the other changes in the scope of consolidation.
Segment reporting is adopted in accordance with IAS 14 and provides an overview of the relevant business segments and activities in the geographical markets of the Hypo Group Alpe Adria. It is the aim of segment reporting to explain how business results are generated from the segments.
Refinancing costs of participations in the parent company are allocated to the related segments. The interest rate used is that of long-term debt capital (roll-over estimation) and amounted, in the first half of financial year 2008 to 4.33 % (first half of 2007: 4.42 %).
Hypo Group Alpe Adria chose geographical markets as the primary segment because material risks and rewards come from the countries where the Group is active:
- Austria
- Italy
- Slovenia
- Croatia
- Bosnia and Herzegovina (BiH)
- Serbia
- Other regions
The secondary segment represents the core competences of Hypo Group Alpe Adria and consists of:
- Banking
- Leasing
- Other
In the first half of 2007, Hypo Alpe-Adria-Bank (Liechtenstein) AG (now trading under the name of Alpe Adria Privatbank AG) was still included in the consolidated interim financial statements as a fully consolidated entity. Its income and expenses as well as assets and liabilities being reported in the segments »Other markets« (primary segment) respectively »Banking« (secondary segment). In the first six months of 2007, the company contributed approximately EUR 1.8 million to the net interest result as well as approximately EUR 3.4 million to the fees and commissions result. The expenses for risk provisions on loans and advances amounted to approximately EUR – 0.5 million, while the operating expenses were approximately EUR – 2.9 million. As a result of the sale of 51 % of the shares in this company in December 2007, the bank is now included by means of the at equity method, and the share of the result of the first half of 2008 is reported in unallocated corporate income/expenses.
Over and above the aforesaid, the basis of segment reporting compared with the previous period remained largely unaffected
by the other changes in the scope of consolidation.
