Hypo Alpe-Adria-Bank group in BiH, consisting of the regional units in Mostar and Banja Luka, reported a net consolidated profit of KM19 million (€9.7 million) in 2005. Chairman of the governing council Kurt Makula announced at a press conference that the result has soared 163% year-over-year. The group’s total assets increased by 35% y/y and amounted to KM2.25 billion as of the end-2005 with loans growing by 35.5% y/y to KM1.66 billion. The group attracted deposits worth KM1.96 billion, representing a 34.6% y/y expansion.
The significant increase of the group’s profit was positively influenced by the improved performance of the both HAAB ad Mostar and HAAB ad Banja Luka. The entity in Mostar registered a KM12 million net profit in 2005, which translated to 67% y/y growth with the assets of the bank increasing by 25.3% y/y to a total of KM1.34 billion. At the same time, assets of HAAB ad Banja Luka grew by 55.4% y/y to KM908.4 million and the registered net profit surged almost 100 times to KM7 million. The majority stakeholder in HAAB, which operates 80 branches throughout BiH and employs some 900 workers, is the Austrian Hypo Alpe-Adria-Bank AG Klagenfurt.