Hypo Bank to operate as Addiko Bank as of July 11

As of July 11 Hypo Alpe-Adria-Bank will be operating under a new name, Addiko Bank, both in Croatia and other countries in this region - Slovenia, Serbia, Bosnia and Herzegovina and Montenegro, a news conference heard on Thursday.

Presenting the bank's new visual identity, Austria's Hypo Group CEO Ulrich Kissing said that the changes would not affect only the bank's visual identity and name but its entire system of operation, and that this would include its turning to operations with citizens and small and medium-sized businesses.

He would not comment on the cost of the bank's rebranding.

Recalling problems in the bank's past and the fact that its branch in Croatia ended the year 2015 with a loss of close to HRK 2.5 billion, Kissing said the bank's new owners, the US fund Advent International and the European Bank for Reconstruction and Development (EBRD), had covered the loss and the bank now had high capital adequacy in the region and in Croatia, while the share of bad loans had been reduced to 11% in the region and 8% in Croatia.

He said that Addiko Bank would turn from investments in major real estate projects, where it had lost huge amounts of money, to investments in the real sector.

Hypo Alpe-Adria-Bank CEO Mario Zizek said that the process of rebranding would be completed by the end of September this year.

Answering reporters' questions, Kissing also commented on the conversion of loans tied to the Swiss franc to euro-denominated loans, saying that the bank had completed the conversion process, which had contributed to its loss, but that it still considered the law on conversion unconstitutional and would therefore stick by its complaint to the Constitutional Court.

Last update: Sat, 03/09/2016 - 00:54

More from Business

Belgrade Stock Exchange joins SEE Link

The Belgrade Stock Exchange (BELEX) has been connected to the South-East European Link, a project started by...

European investors shrug at Renzi resignation after failed referendum

 European markets on Monday shrugged off this weekend's failed constitutional reform referendum in Italy.

US unemployment rate dips to 9-year low

The US unemployment rate fell in November to 4.6 per cent, a nine-year low, the Bureau of Labour Statistics said...

Chinese firm building full-size Titanic replica for tourists

Construction has begun on the world's first full-size replica of the Titanic in China, a country that fell in love...

Erdogan calls on Turks to sell dollars and buy lira and gold

President Recep Tayyip Erdogan urged Turkish citizens on Friday to sell their dollars and buy gold and lira, as the...