Hypo: Half-Year Results Expected August 28
In order to be able and balance, nationalized Hypo Group required € 700m in capital by the Austrian state.
Hypo: Half-Year Results Expected August 28 / Picture: © Wikipedia / JJ55 (30 March 2008)
The preliminary report from January to June 2013 was the management board’s key topic on Tuesday during the board meeting. The announcement of results is expected in the coming days, probably on Wednesday, according to the board of directors. After further write-offs of loans, downgrades and increased loss coverage in Italy, losses amounted to more than € 700m. Without the current state funding the required capital quota would not be fulfilled.
The bank is expected to require further state backing in the course of the year. The final amount will depend on the restructuring report by the EU Commission which is expected later this autumn; but it will also depend on whether or not there will be a bad bank for non-performing loans and unsaleable assets.
Around a week ago, the Austrian division of nationalized bank Hypo Group reported to have made small profits in the past half year. On Monday, August 20, the banking group reported a modest profit for the first six months of this year. After net earning of € 5.8m in the first half year in 2012, the bank shows an after tax profit of € 787,000 in the first half year of 2013.
The Austrian division stands briefly before its sale to Indian investment group Anadi. The take-over is supposed to be carried out in the second half year. The Austrian division encompasses fourteen subsidiaries in the province of Carinthia and two in Salzburg and Vienna respectively. Up to the mid-year, the banking institute employed 440 persons.