Bregenz A functioning financial economy is a prerequisite for a strong business location. This week showed that the banks in Vorarlberg are well positioned. In addition to Raiffeisen and Volksbank, Hypo Vorarlberg also successfully mastered the challenging year 2021, as it impressively documented yesterday with the publication of its 2021 annual balance sheet according to IFRS (International Financial Reporting Standards) before taxes almost doubled and amounted to EUR 93.7 million. In addition to the strong customer business, this was also due to the declining risk provisioning requirement.
“With our risk-aware business strategy, we have been well positioned for 125 years.”
Michel Haller, CEO of Hypo Vorarlberg
“The 2021 business result exceeded our expectations, thanks to the strong economy in our core markets and the upswing on the stock markets,” reports CEO Michel Haller. “But the figures, above all the interest and commission income as the most important earnings basis, also make it clear that Hypo Vorarlberg is a healthy, sustainably successful bank. With our risk-aware business strategy, we have been well positioned for 125 years, which pays off particularly in difficult times,” says Haller, explaining the balance sheet figures. The equity ratio was also further strengthened: the total equity ratio in the Group rose from 17.81 to 18.65 percent. The balance sheet total has also grown and was EUR 15.6 billion at the end of the year (2020: EUR 15.3 billion).
Since many companies used the time for conversions or investments due to corona restrictions, there was high demand for banking services in 2021, especially in the credit sector. Private individuals also continued to invest heavily in real estate, and the volume of loans rose again.
The environment remains challenging, reports Haller: There is great uncertainty regarding future monetary policy and interest rate developments. The Ukraine war is currently at the center of many considerations. In addition, raw material prices are an issue, “this has not yet had any noticeable effects on us as a bank”. Customers are expected to invest in the area of sustainability and renewable energies.