Economic performance
Development of the result
Development of the result
For Hypo Group Alpe Adria, the primary influences in the first half of 2008 were the continued very positive development of the operative customer business on the one hand, but also exceptional outgoings, attributable to the crisis in the financial markets and high risk provisions on loans and advances, on the other.
Concerning the operative business, sound growth was achieved both in the banking and in the leasing segment. This is reflected in particular in the net interest result. Compared with the value for the same period of the previous year (1 January until 30 June 2007), a remarkable increase of 12.0 % respectively by EUR 36.5 million to EUR 340.3 million was achieved in spite of the negative interest influences from the derivative business.
Fee and commission income was up 6.1 % in the first six months of 2007, reaching EUR 60.2 million. It should be pointed out that the figure for the same period of the previous year had still included the fee and commission income of Alpe Adria Privatbank AG, Liechtenstein (formerly Hypo Alpe-Adria-Bank (Liechtenstein) AG) with EUR 3.4 million, an item that is not included any more on fully consolidated basis in the financial statements for the first half of 2008 since 51 % of the shares were sold in December 2007. If the result is adjusted to take this effect into account, the fee and commission income increased by 12.9 % in 2008. Within commission revenues, there was a marked decrease in the securities and custodian business. This is explained by the end of the infow of commission income from Alpe Adria Privatbank AG, Liechtenstein, which had still contributed EUR 5.7 million to this revenue item in the previous year, and by the reluctance of the customers as a consequence of the unstable situation in the capital market. However, the notable increase of the fee and commission income in the credit business effectively compensated this decrease.
In the first six months of the current financial year, the result from trading was negatively affected, contracting from EUR 21.4 million to EUR 8.0 million. This was primarily attributable to interest and index related transactions.
Essentially, the result from financial investments to be designated at fair value through profit or loss (fair value option) was affected by negative market value developments of non-covered equity and debt instruments. However, with respect to the subprime related securities reported on the basis of the counterpart rates recognized in the fair value option category, there was an appreciation of value in an amount of EUR 4.6 million during the first six months.
For Hypo Group Alpe Adria, the primary influences in the first half of 2008 were the continued very positive development of the operative customer business on the one hand, but also exceptional outgoings, attributable to the crisis in the financial markets and high risk provisions on loans and advances, on the other.
Concerning the operative business, sound growth was achieved both in the banking and in the leasing segment. This is reflected in particular in the net interest result. Compared with the value for the same period of the previous year (1 January until 30 June 2007), a remarkable increase of 12.0 % respectively by EUR 36.5 million to EUR 340.3 million was achieved in spite of the negative interest influences from the derivative business.
Fee and commission income was up 6.1 % in the first six months of 2007, reaching EUR 60.2 million. It should be pointed out that the figure for the same period of the previous year had still included the fee and commission income of Alpe Adria Privatbank AG, Liechtenstein (formerly Hypo Alpe-Adria-Bank (Liechtenstein) AG) with EUR 3.4 million, an item that is not included any more on fully consolidated basis in the financial statements for the first half of 2008 since 51 % of the shares were sold in December 2007. If the result is adjusted to take this effect into account, the fee and commission income increased by 12.9 % in 2008. Within commission revenues, there was a marked decrease in the securities and custodian business. This is explained by the end of the infow of commission income from Alpe Adria Privatbank AG, Liechtenstein, which had still contributed EUR 5.7 million to this revenue item in the previous year, and by the reluctance of the customers as a consequence of the unstable situation in the capital market. However, the notable increase of the fee and commission income in the credit business effectively compensated this decrease.
In the first six months of the current financial year, the result from trading was negatively affected, contracting from EUR 21.4 million to EUR 8.0 million. This was primarily attributable to interest and index related transactions.
Essentially, the result from financial investments to be designated at fair value through profit or loss (fair value option) was affected by negative market value developments of non-covered equity and debt instruments. However, with respect to the subprime related securities reported on the basis of the counterpart rates recognized in the fair value option category, there was an appreciation of value in an amount of EUR 4.6 million during the first six months.
