HYPO NOE group improves pre-tax earnings of 48 million euros in the year 2018

Result of 2018, rising significantly above Plan and multi-year average of net interest income in 2018, 2.8 percent, administrative expenses also falls in 2018 and 2.6 percent

St. Pölten/Vienna (OTS) – „2018 was a very successful year for us. In a challenging environment, we managed to increase net interest income and the net profit (profit after tax) of 36 million euros to significantly expand. 1.4 billion euros, we were able to allocate more new loans than in the previous year, and are therefore even more important part of the economic engine in the Region,“ informed Wolfgang of cattle chosen, the Board of management of the market and the spokesman for the Board.

„Our capital position is with a hard core capital ratio of 21 per cent, more robust today than ever. At the same time, we work through our efficiency agenda consistently – the administrative expenses were reduced in the past two years to about 12 percent significantly. This gives us the necessary flexibility for the future“, emphasized Udo Birkner, member of the Board in the Market.

Successful Fiscal Year 2018

Net income for the period before tax in the HYPO NOE group increased in the year 2018, a substantial 23.8 percent to EUR 48 million, which is above the multiannual average. Analogously, the increase is reflected in the Return on Equity before tax, which increased last year by 1.1 percentage points to 7 percent. The profit after tax in 2018, with 36.4 million euros, an increase of 25.2 percent over the previous year (2017: 29.1 million euros).

Rising income components – lower costs

Despite the ongoing low interest rate environment, net interest income, will be extended in 2018 by 2.8 per cent to 111.9 million Euro (2017: 108.9 million Euro) could. On the cost side, administrative expenses reduced in the year 2018, and by 2.6 per cent to 112.8 million euros. The period across the case, the consistent implementation of the group reflects the end of administrative expenses efficiency enhancement programme „fit for the future 2020 reflect broad“. In the past year, the organisational structure was further streamlined. The management team was reduced to two members.

Low-risk business model – proven since 1888

The quality of the assets of the HYPO NOE group improves continuously The already low ratio of non-performing loans (NPL) was reduced compared to the 1.1.2018 by a further 0.5 percentage points to 1.4 percent. In spite of successful new production awards of € 1.4 billion in fiscal year 2018, the risk-weighted assets (credit risk) as a result of the stringent risk policy of the group developed even declined slightly and amounted to 31.12.2018 to a low of 2.7 billion euros.

Capitalization is more robust than ever

Regardless of IFRS 9 first time adoption effect of -0.7 percentage points by 1.1.2018, could be a strengthening of the already robust core tier I capital ratio as of the end of the year 2018 20,97% (31.12.2017: 19,84 percent). The HYPO NOE group can therefore rely on a reliable Basis and future regulatory requirements, as well as other growth opportunities without performance loss. Due to the outstanding capital position and consistent capital generation in the past years, the rating Agency Standard & Poor’s raised already in may 2018, the Outlook for the solid’A ‚credit Ratings to „positive“.

Stable balance sheet development – broad refinancing base

Financial assets – AC, which contain 94 percent of loans and loans, increased to 11.6 billion euros, not least of all in a row of solid new lending. In contrast, the Financial liabilities – AC in the amount of 12.1 billion Euro, of which the well-diversified funding structure of the HYPO NOE group. By the end of the year 2018, the Position was distributed to 7.6 billion Euro in covered bonds, municipal bonds and bonds, as well as 4.5 billion euros in customer deposits. The latter could be expanded for 2013 to be significant. The balance sheet total decreased compared with the 1.1.2018 on the basis of a successful Pre-Funding and associated active reduction of Inventory, a slight 2.1 percent to 14.1 billion euros.

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The HYPO NOE group also sets 2019 on efficiency gains and further diversification of its earnings structure. At the same time, the aim is to continuous improvement of quality assets and maintaining a strong capital position. The long-term orientation of the country’s 100%-owner will help lower Austria as a reliable, sustainable implementation of this strategy in the future.

The full year financial report to 2018 is www.hyponoe.at/ir] (http://www.hyponoe.at/ir).

HYPO NOE Landesbank for lower Austria and Vienna AG

HYPO NOE Landesbank für Niederösterreich und Wien AG is one of the oldest and largest regional banks in Austria. The core market lower Austria and Vienna, selectively, the adjacent the CEE region. With the Land of lower Austria as a 100% owner, Landesbank can rely on a secure base. The proven strategy is based on regionality, proximity to customers and sustainability.

With the solid Issuer rating of ‚A‘ with a positive Outlook by Standard & Poor’s, the Institute is among the best rated, and thus the first banks in Austria. Also for the public and mortgage cover pool of the Bank by Moody’s is considered to be of ‚Aa1‘ on an unchanged high level. In the area of sustainability, the „Prime“Status by oekom research highlights that the HYPO NOE Landesbank is one of the Best in the industry.

Further information for investors:
Marco Rider
Tel: +43 (0)5 90910 – 1589
E-Mail: marco.reiter@hyponoe.at

Florian Liehr
Press speaker, line communications, HYPO NOE
Tel.: +43 (0)5 90 910-1235
Mobile: +43 (0) 664 88307399
Mail: florian.liehr@hyponoe.at
Web: www.hyponoe.at