Banking business in 2007 was significantly affected by the change to a more restrictive risk policy during the year. In investments, the turbulence in international financial markets resulted in losses on valuations, which depressed the results for the year. Without these extraordinary special effects, the operating results for banking were extremely satisfactory, and show that the business is on a very sound footing.

The banking segment makes regular use of the Group’s combined skills and expertise and all its products and services in its local and cross-border activities. This core competence of Hypo Group Alpe Adria is offered to corporate and retail customers in each of its national markets, and includes services ranging from traditional lending to savings and deposits, as well as complex investment products and asset management services. Hypo Group Alpe Adria employees are justly renowned for their closeness to customers, their comprehensive knowledge of all its markets, and an international, networked approach to generating customised solutions. This is complemented by the payments and settlements business and documentary credits services that are so essential to international business, and by structured finance products. A strong service ethos and the greatest possible closeness to the customer are the core of all our client relationships, so that both private and corporate customers benefit from Hypo Group Alpe Adria’s closely meshed network of specialists, branches, products and services.