Hypo Alpe Adria Bank

Last updated
Heta Asset Resolution
FormerlyHypo Alpe-Adria-Bank International
Company typestate-owned enterprise
IndustryFinancial services
Founded1896
2014 (spin off)
Successor
  • Addiko Bank (Balkan branches)
  • Austrian Anadi Bank (Austrian branches)
Headquarters1 Alpen-Adria-Platz,
Klagenfurt
,
Austria
Servicesformer bank under resolution
Increase2.svg €06.714  billion  (2016)
Total assets Decrease2.svg €10.788 billion (2016)
Total equity Increase2.svg €00997 million (2016)
Owner Austria (100%)
Subsidiaries
  • Alpe Adria Privatbank (in liquidation)
Website heta-asset-resolution.com
Footnotes /references
in a consolidated financial statement [1]

Heta Asset Resolution A.G. is a "bad bank" that was the residual asset of the original Hypo Alpe-Adria-Bank International A.G., which was dismantled in 2014. It was owned by the Government of Austria.

Contents

The bad bank contained the leasing subsidiary of former Hypo Alpe-Adria-Bank Group in Austria, Italy, Bulgaria, Serbia, Montenegro and North Macedonia [2] but not in Bosnia and Herzegovina, Croatia and Slovenia, which were transferred to the "good bank". [3]

In the past Hypo Alpe-Adria-Bank International was also active in Austria, Germany, Italy, Bulgaria, Hungary and Ukraine. [4] However, due to the European debt crisis, the group was split into HBI-Bundesholding AG (consisting of the subsidiary Hypo Alpe-Adria-Bank S.p.A.; Italy), the Balkan banks (Hypo Group Alpe Adria AG; now Addiko Bank) and a bad bank, Heta Asset Resolution AG (ex-Hypo Alpe-Adria-Bank International AG) in 2014. The leasing subsidiaries of the former Hypo Alpe-Adria-Bank International in Italy, Bulgaria, Serbia, Montenegro and North Macedonia were retained in the bad bank. [5] The Austrian branches were sold in 2013 (now Austrian Anadi Bank).

History

Birth and rise of cross-border banking

The bank was founded in 1896 as a Landes-und Hypothekenbank (state Hypothekenbank). In the 1990s it explosively expanded into the Alps-to-Adriatic region. In 2004 the company was renamed Hypo Alpe-Adria-Bank International A.G., as a holding company for the "Hypo Alpe-Adria-Bank" subsidiaries. [5]

In May 2007 BayernLB, the Bavaria-state-owned bank, bought 50% plus one share (controlling stake) of Hypo Alpe-Adria-Bank International for €1.63  billion. [6]

European debt crisis and the demerger of the group

On 14 December 2009, BayernLB, Kärntner Landesholding (Carinthia state holding) and Grazer Wechselseitige Versicherung sold their stakes in the bank to the Austrian government for €1 each. [7] The bank was nationalised by the Austrian government to avert a bank collapse. [8] It was expected that between €13 billion and €19 billion of outstanding loans will never be paid back; to avoid bankruptcy, the Austrian taxpayers will have to cover this loss. [9]

The headquarters, which accounts for around 500 employees, was located in Klagenfurt, Austria and was responsible for controlling the subsidiary banks in Austria, Italy and South-Eastern Europe as well as those markets from which the bank was withdrawing (wind-down markets). [10]

In 2013 the domestic branches of the bank in Austria were sold to Anadi Financial Holdings, and renamed to Austrian Anadi Bank. [11]

As of February 2014, the Hypo Alpe-Adria-Bank International situation was unsolved, [12] causing Chancellor Werner Faymann to warn that its failure would be comparable to the 1931 Creditanstalt event. [13]

Under Resolution

In March 2014, the Austrian government decided to split Hypo Alpe-Adria-Bank International into a Balkans banking unit (Hypo Group Alpe Adria A.G.; formerly: Hypo SEE Holding A.G.), an Italian business (HBI-Bundesholding A.G.) and a bad bank, Heta Asset Resolution. The Balkans unit was sold in December 2014 to Advent International (80%) and the European Bank for Reconstruction and Development (20%). [14]

The original company Hypo Alpe-Adria-Bank International was renamed as Heta Asset Resolution, becoming a "bad bank" that did not have a banking license. It was intended to wind down the bad bank over a period of years. [15] The European Union had forbidden member states to provide state aid to make the market less competitive, thus the 2013 plan was redesigned in order to comply with EU law. [16] The General Court also ruled that the guarantee granted by Austria to BayernLB in 2009 during the nationalization was a state aid but nevertheless compatible with EU law. [17] [18]

In October 2014 Italian Guardia di Finanza started an investigation on the leasing department of the Italian subsidiary. The department was remained in the "bad bank" as Heta Asset Resolution Italia S.r.l. [19]

On 1 March 2015 the Financial Market Authority Austria (German : Finanzmarktaufsicht Österreich) imposed a moratorium on debt and interest payments by Heta Asset Resolution on unguaranteed debt. It was due to Austrian Federal Act on the Recovery and Resolution of Banks (BaSAG German : Bundesgesetz zur Sanierung und Abwicklung von Banken) came to effect, an Austrian transpose of EU Bank Recovery and Resolution Directive (BRRD). An audit also found that Heta had a capital shortfall of up to €7.6 billion. [20] The Financial Market Authority would draw a new resolution plan for the bad bank in order to be in line with EU law. Financial Market Authority was the "national resolution authority" of this mechanism.

On 8 May 2015 The Munich I Regional Court obligated HETA to pay BayernLB €1.03 billion and CHF 1.29 billion plus interest. On 7 July 2015 Austria and Bavaria signed a memorandum of understanding which confirmed BayernLB was one of the non-subordinated, unsecured creditors for €2.4 billion. Austria would pay Bavaria €1.23 billion in advance for HETA. Despite it may be reimbursed due to ongoing court proceeding. [21] Previously Austria, BayernLB and Bavaria sued each other for the responsibility of the debt, which BayernLB was a shareholder of the bank. [22] [23]

Dexia announced in February 2016 they would suffer another loss due to the moratorium. [24]

In 2016 the state government of Carinthia, the provider of the state guarantee, offered a debt hair-cut to buy the senior bonds for 75% face value and 30% face value for subordinated bonds. [24] On 4 August 2016, a private equity fund advised by Bain Capital purchased Heta Asset Resolution Italia S.r.l. (former Hypo Alpe-Adria Leasing S.r.l.) from Heta. [25] During the year, Financial Market Authority also made a debt hair cut using the power as a resolution authority of EU Bank Recovery and Resolution Directive, making the bad bank had a positive equity for the first time.

Buildings and sponsorship

Former Hypo Alpe Adria headquarters in Klagenfurt, built in 2002 according to plans by Thom Mayne Hypo Group Alpe Adria Gebaude.JPG
Former Hypo Alpe Adria headquarters in Klagenfurt, built in 2002 according to plans by Thom Mayne

The headquarters of Hypo Alpe Adria, designed by the American architect Thom Mayne, is located in the Carinthian state capital Klagenfurt am Wörthersee, Alpen-Adria-Platz. The building was sold to a Swiss real estate company at the end of November 2018; it was agreed not to disclose the purchase price. [26]

In 2007 it was announced that the Wörthersee Stadion in Klagenfurt, Austria, would be called the Hypo Group Arena for at least ten years after the Hypo-Alpe-Adria-Bank secured the naming rights to the stadium. However, during the financial and economic crisis of 2009, the bank ran into financial problems and ultimately went under. Therefore, the stadium was renamed Wörthersee Stadion in 2010. [27]

Between 2006 and 2008, they sponsored the Hypo Group Tennis International, a tennis tournament in Pörtschach, Austria. [28]

Related Research Articles

<span class="mw-page-title-main">Jean-Claude Trichet</span> French economist

Jean-Claude Trichet is a French economist who was President of the European Central Bank from 2004 to 2011. Previous to his assumption of the presidency he was Governor of the Bank of France from 1993 to 2004.

<span class="mw-page-title-main">HypoVereinsbank</span> Bank in Germany, part of UniCredit Group

HypoVereinsbank (HVB), legally registered since late 2008 as UniCredit Bank GmbH, is a significant bank in Germany headquartered in Munich. It has been part of the Milan-based UniCredit group since 2005, and fully owned by it since 2008. As a consequence, HVB is operating exclusively in Germany, where it mainly focuses on private clients business and corporate banking, customer-related capital market activities and wealth management.

<span class="mw-page-title-main">Dexia</span> Franco-Belgian financial institution

Dexia N.V./S.A., or the Dexia Group, is a Franco-Belgian financial institution formed in 1996. At its peak in 2010, it had about 35,200 members of staff and a core shareholders' equity of €19.2 billion.

<span class="mw-page-title-main">UniCredit</span> International banking group

UniCredit S.p.A. is an international banking group headquartered in Milan. It was Italy's only systemically important bank and the world's 34th largest by assets. It was formed through the merger of Credito Italiano and Unicredito in 1998 but has a corporate identity stretching back to its first foundation in 1870 as Banca di Genova. UniCredit is listed on the Borsa Italiana and Frankfurt Stock Exchange and is a constituent stock of the Euro Stoxx 50 index of leading shares.

Bayerische Landesbank, also known as BayernLB, is a publicly regulated bank based in Munich, Germany and one of the six Landesbanken. It is 75% owned by the Free State of Bavaria and 25% owned by the Sparkassenverband Bayern, the umbrella organization of Bavarian Sparkassen. With a balance of €285,70 billion and 7,703 employees, it is the seventh-largest financial institution in Germany.

<span class="mw-page-title-main">Wörthersee Stadion</span> Multi-purpose stadium in Klagenfurt

Wörthersee Stadion, known as 28 Black Arena for sponsorship reasons, is a multi-purpose stadium located in Klagenfurt, Austria. It is the home ground of Austria Klagenfurt. The stadium is situated within the Sportpark Klagenfurt campus of several other sports venues. Its name refers to the nearby Wörthersee lake.

The Norddeutsche Landesbank Girozentrale is a German Landesbank and one of the largest commercial banks in Germany. It is a public corporation majority-owned by the federal states of Lower Saxony and Saxony-Anhalt with its head office in Hanover and branches in Braunschweig and Magdeburg. Regional Sparkassen hold a minority stake of 35 percent.

The Addiko Bank is an Austrian banking group with numerous cross-border activities in the Alps-Adriatic region. The group is active in Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro. However, the bank itself did not have a banking license in Austria, which now owned by Austrian Anadi Bank, another bank that was spun off Hypo Alpe-Adria-Bank International AG.

The Hypo Real Estate Holding AG is a holding company based in Munich, Germany which comprises many real estate financing banks. The company's activities span three sectors of the real estate market: commercial property, infrastructure and public finance, and capital markets and asset management. Hypo Real Estate is the second largest commercial property lender in Germany.

<span class="mw-page-title-main">Schloss Velden</span>

Schloss Velden is a castle in the Austrian tourist resort of Velden am Wörther See, Carinthia. It is run as a year-round hotel located on the western shore of Lake Wörth (Wörthersee).

A bad bank is a corporate structure which isolates illiquid and high risk assets held by a bank or a financial organisation, or perhaps a group of banks or financial organisations. A bank may accumulate a large portfolio of debts or other financial instruments which unexpectedly become at risk of partial or full default. A large volume of non-performing assets usually make it difficult for the bank to raise capital, for example through sales of bonds. In these circumstances, the bank may wish to segregate its good assets from its bad assets through the creation of a bad bank. The goal of the segregation is to allow investors to assess the bank's financial health with greater certainty. A bad bank might be established by one bank or financial institution as part of a strategy to deal with a difficult financial situation, or by a government or some other official institution as part of an official response to financial problems across a number of institutions in the financial sector.

<span class="mw-page-title-main">Georg Fahrenschon</span> German politician

Georg Fahrenschon is a German politician of the Christian Social Union (CSU). From 2008 to 2011, he served as finance minister in the Bavarian State Ministry of Finance. He was a member of the Bundestag of Germany until 2007.

<span class="mw-page-title-main">Markus Söder</span> German politician (born 1967)

Markus Thomas Theodor Söder is a German politician serving as Minister-President of Bavaria since 2018 and leader of the Christian Social Union (CSU) since 2019.

<span class="mw-page-title-main">NRW.Bank</span> State development bank of North Rhine-Westphalia

NRW.Bank is a German state development bank of North Rhine-Westphalia (NRW) based in Düsseldorf and Münster. Its status is that of a public agency. It is owned by the North Rhine-Westphalia state and supports its structural policy.

Dexia Crediop S.p.A. was an Italian bank specializing in financing public infrastructure which was part of Dexia Group, and disappeared in 2023 in the context of Dexia's orderly resolution plan.

Hypo Alpe-Adria-Bank S.p.A. also known as HBI was an Italian bank based in Tavagnacco, in the Province of Udine, Friuli – Venezia Giulia region. The registered office of the bank was located in Udine. In the past, the bank was a subsidiary of Hypo Alpe-Adria-Bank International, which was planned to wind down as "bad bank" and separate saleable assets in 2013 as "good bank". In 2014 the subsidiary was spun off from the bad bank as a separate wind-down unit. As at 31 December 2014, Hypo Italy was a subsidiary HBI-Bundesholding A.G., a Vienna-based sub-holding company for the government of Austria.

<span class="mw-page-title-main">Alexander Picker</span>

Alexander Picker is an International banker that is currently the CEO of Komercijalna banka AD Beograd.

Sanjeev Kanoria is a London-based liver transplant surgeon, and healthcare entrepreneur. He is the owner and chairman of Advinia HealthCare as well as the vice-chairman of the supervisory board of Austrian Anadi Bank.

The Düsseldorfer Hypothekenbank AG, also known as DüssHyp, is a mortgage bank based in Düsseldorf that specializes in government and real estate financing. Refinancing takes place through issuing bonds via the capital market.

The Sparkassen-Finanzgruppe is a network of public banks that together form the largest financial services group in Germany and in all of Europe. Its name refers to local government-controlled savings banks that are known in German as Sparkasse, plural Sparkassen. Its activity is overwhelmingly located in Germany.

References

  1. ↑ "2016 Annual Report" (PDF). Heta Asset Resolution. 20 April 2017. Retrieved 8 May 2017.[ permanent dead link ]
  2. ↑ "2015 Annual Financial Report" (PDF). Heta Asset Resolution. 29 April 2016. Archived from the original (PDF) on 20 October 2016. Retrieved 1 May 2016.
  3. ↑ "2014 Konzern-Geschäftsbericht" [2014 Annual Report](PDF) (in German). Hypo Group Alpe Adria. 28 May 2015. Archived from the original (PDF) on 2 March 2016. Retrieved 21 February 2016.
  4. ↑ "Group Structure: Material Subsidiaries as of 31.12.2012". Hypo-alpe-adria.com. May 5, 2013. Archived from the original on May 2, 2013.
  5. 1 2 "2014 Annual Financial Report" (PDF). Heta Asset Resolution. 26 June 2015. Retrieved 21 February 2016.[ permanent dead link ]
  6. ↑ "BayernLB übernimmt Hypo Alpe Adria". Handelsblatt (in German). May 22, 2007.
  7. ↑ (in German) "BayernLB kauft sich von Hypo Group Alpe Adria frei", Handelsblatt (in German), December 14, 2009
  8. ↑ "Austria nationalises ailing Hypo". Reuters.
  9. ↑ "Die Hypo und die Rechenkünstler". Die Presse (in German). 2014-02-14.
  10. ↑ "Austria nationalises ailing Hypo -FinMin". Reuters. 2009-12-14. Retrieved 2014-01-04.
  11. ↑ "Kanoria buys Hypo's domestic banking arm". Financial Times. 31 May 2013. Retrieved 21 February 2016.
  12. ↑ "Hypo Alpe Debt Cut Four Steps as a kind of Insolvency Not Ruled Out". Bloomberg. 15 February 2014.
  13. ↑ "Faymann Evokes 1931 Austria Creditanstalt Crash on Hypo Alpe". Bloomberg. 17 February 2014.
  14. ↑ "Advent International and EBRD enter agreement to acquire Hypo Group Alpe Adria AG (Southeast Europe banking network)" (Press release). Advent International. 23 December 2014. Retrieved 21 February 2016.
  15. ↑ Michael Shields (2014-12-23). "Austria sells Hypo Balkans network to private equity firm Advent". Reuters.
  16. ↑ "State aid: Commission approves plan to orderly wind down Hypo Group Alpe Adria". European Commission. 3 September 2013. Retrieved 24 April 2016.
  17. ↑ case number: SA.28487
  18. ↑ "The General Court confirms that the guarantee granted by Austria to BayernLB in the context of its restructuring concerning BayernLB's credit lines in favour of Hypo Group Alpe Adria constitutes State aid which is nevertheless compatible with EU law" (PDF). General Court of the European Union. 28 January 2016. Retrieved 24 April 2016.
  19. ↑ "Hypo-Alpe-Adria Bank, software truccati per lucrare sull'Euribor: la Finanza scopre truffa da 88 milioni" (in Italian). Il sole 24 ore. 25 October 2014. Retrieved 22 February 2016.
  20. ↑ "Austria imposes debt moratorium on Heta "bad bank"". Reuters. 2015-03-01.
  21. ↑ "Information for Creditors and Investors" (PDF). Heta Asset Resolution. 6 November 2015. Archived from the original (PDF) on 9 March 2016. Retrieved 8 March 2016.
  22. ↑ Weber, Webb & Comfort, "A" (7 July 2015). "Austria to Pay Bavaria 1.2 Billion Euros in Heta Deal". Bloomberg Business. Retrieved 10 July 2015.{{cite web}}: CS1 maint: multiple names: authors list (link)
  23. ↑ "Implementation of the Memorandum of Understanding of 7 July 2015" (PDF). Heta Asset Resolution. 21 September 2015. Retrieved 8 March 2016.[ permanent dead link ]
  24. 1 2 "Dexia Group Consolidated Results 2015" (PDF). Dexia. 19 February 2016. Retrieved 22 February 2016.
  25. ↑ "Sale of affiliate Heta Asset Resolution Italia S.r.l. and publication of new investor information" (PDF). Heta Asset Resolution. 4 August 2016. Archived from the original (PDF) on 17 September 2016. Retrieved 19 August 2016.
  26. ↑ "Hypo-Zentrale an Schweizer Firma verkauft" [Hypo headquarters sold to Swiss company]. kaernten.orf.at (in German). 30 November 2018. Retrieved 20 October 2023.
  27. ↑ "Wörthersee Stadion". sportpark-klagenfurt.at (in German). Archived from the original on 21 August 2011. Retrieved 20 October 2023.
  28. ↑ "Hypo Group Tennis International, Portschach - ATP Tournaments". grandslamhistory.com. Retrieved 20 October 2023.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.