Successful Year 2010 for Hypo Alpe-Adria-Bank D.D. In Croatia

ZAGREB (Croatia), 30 March 2011 -- InPR -- Successful year 2010 for Hypo Alpe-Adria-Bank d.d. in Croatiaacents Retail deposits grew by 19% and amounted to 10.5 billion kunas in 2010acents Total loan portfolio grew by 4.6%acents Business efficiency additionally improved, CIR totalling 45.05%acents Profit before taxes totals 279 million HRKacents Increased number of clients, branch and ATM network expandedIn 2010 Hypo Alpe-Adria-Bank d.d. has continued with the development of itsbusiness operations in Croatia and has, even under unfavourable businessconditions, increased the number of clients, successfully collected new retaildeposits, developed its business network and was a reliable partner to retail clientsand the economy, thus confirming itself as one of the major and most stable bankson Croatian market.With the total balance of 38.94 billion HRK, Hypo Alpe-Adria-Banka ranks fifthaccording to total assets. Total net loan portfolio amounted to 28.47 billion HRK,which represents a 4.6% growth compared to the previous year. Retail depositssegment had an especially strong growth of 19.34 percent compared to the year2009, thus amounting to 10.5 billion HRK by the end of the year 2010.Profit before taxes totalled 279 million HRK, which represents an increase comparedto the previous year and clearly confirms the success of the Bank's new strategy,quality of its business operations, stability as well as trust and satisfaction of itsclients. Despite the decrease of the operative profit, the good total result wasinfluenced by the drop in provision costs for bad loans, which are unavoidable insuch a difficult business environment, and which totalled 511.5 million HRK. Positiveinfluence on the result was also made by additional business efficiency improvement,which lead to further decrease of operative expenses by 4% compared to the year2009, while the cost/income ratio (CIR) totalling 45.05% on December 31st 2010.During 2010 the banking sector faced unfavourable economic environment andtougher business conditions, which was especially visible in the increase of credit riskand more difficult payment collection, and has caused significant provisions forpotential losses. Still, thanks to the new strategy and business plan focused onODNOSI S JAVNOA CU PublicRelations.Croatia@hypo-alpe-adria.hrIgor Vukasovic 01/6033 281Jasna Dakic 01/6030 152developing the retail and public sector as well as on production and export orientedcompanies, Hypo Alpe-Adria-Bank d.d. has achieved an increase of target businesssegments and good business results in 2010.Net interest income still represents the major income source and totalled 1.03 billionHRK, while the net income from provisions and fees represent the second largestfigure with 286.8 million HRK, which is slightly less than the year before, but is in linewith the Bank's plans, market conditions and decrease of interest rates, both on theassets and the liabilities side for retail and corporate clients.aLast year's results were a clear sign that the new strategy of Hypo Bank and itsbusiness focus on retail, SME and public sector was a right decision. This enabledthe Bank to further develop its business, and at the same time it ensured favourableconditions and quality cooperation to our clients. The fact that we have achievedgrowth in many business segments despite the last year's challenging conditionsconfirms this, and we are especially proud on the large savings growth, which is aproof of our systematic efforts in improving our services and product ranges and itconfirms the trust of our clients", stated Markus Ferstl, President of the HypoAlpe-Adria-Bank d.d. Management Board.Positive measures for clients and boosting the economyDuring the year 2010, being aware of the unfavourable business environment, HypoAlpe-Adria-Bank has introduced a series of positive and fair measures aimed athelping its clients. The Bank has, thus, provided its clients with a moratorium onloans repayment, it enabled free cha