Hypo Vorarlberg at Signa deals-DiePresse.com too much trust

Hypo Vorarlberg Bank AG has had too much trust in the now insolvent Signa Group at the allocation of millions. This is what the Landeschlungshof Vorarlberg (RH) states in its test report presented on Tuesday for the banking of the bank with the Signa Group. The RH in particular saw a 47 million euro loan to the Benko Privat Foundation. The country recommended the RH to set a strategy for the hypo.

The Hypo Vorarlberg, which the majority is owned by the country, had come under great public and political pressure last year due to the loans awarded to the Signa Group. The state parliament unanimously spoke out for an examination by the State Technology Court.

At the end of 2023, seven loans – six real estate financing and the loan to the private foundation – were open with a volume of almost 200 million euros. In the course of the bankruptcies, financing with a volume of EUR 131 million fell into failure, including the loan to the private foundation. How much damage will be possible will only be determined in years. But even in the event of a total failure, the financial institution would not be at risk and would continue to comply with all legal requirements, said Eggler-Bargehr. In 2024, Hypo generated a result before taxes (EGT) of EUR 58.1 million (2023: 53.1 million). The loan volume has been 11.1 billion euros in the past two years, the Signa loan made up less than two percent.

« Risks and abnormalities » at the loan to private foundation

While the RH considered the real estate financing made by the hypo as « fundamentally adequately secured », he saw « risks and abnormalities » in the private foundation loan. « In the bank there was awareness of the high complexity and the sometimes lack of transparency of the customer group, » said RH director Brigitte Eggler-Bargehr. However, the bank’s trust in the customer’s information – the findings of Signa were « too little objectified, » said Eggler -Bargehr. The quality of the conservation – it consisted of a holding company – was also restricted. In the event of economic problems for holding holding, the value of security has dropped automatically. If you take a higher risk business, the credit contract would have to be designed according to the Court of Auditors, but this did not happen in this case.

Court of Auditors with 16 recommendations to the bank

The RH made 16 recommendations to the bank that the Hypo had already initiated measures in the meantime. These would affect risk analyzes, customer groups or engagement strategies. According to RH, the quality of the loan applications should also be increased. It is also important to improve intensive care. The hypo only examined the HYPO a few days before the bankruptcy of the customer group’s holding group.

The country’s strategy for the bank unclear

In addition to the hypo, the RH also duty to the RH. It was not clear what interests the country pursue with its majority stake of almost 77 percent. « We recommend that the state to clarify the future strategy for participation in Hypo Vorarlberg Bank AG, » said Eggler-Bargehr. Basically, she saw three options for this. On the one hand, she called a strategic participation, on the other hand a financial participation – from 2020 to 2024, the bank poured the country between EUR 4.7 and 5.7 million in dividends to the country. As the third option, Eggler-Bahrgehr led a (partial) sale of the financial institution.

« Credit business always risk business »

Hypo CEO Michel Haller said in a specially scheduled press conference that the recommendations would be discussed with the country. « If the country wishes », the bank will actively work and will « take appropriate steps together ». With the Signa Group, Hypo had had a « very productive » business relationship since 2010 and successfully handled it with it with it in the amount of a few 100 million euros – and « earned good money », emphasized Haller. All financing was customary in the market, Haller said again. On RH criticism on the private foundation loan, he said that with loans to foundations and Holdings mostly only participations as security.

The lending business is always a risk business, said board member Stephan Sausgruber. The RH has confirmed that the hypo keeps risks and yields in good balance. He emphasized that the bank also rejected financing inquiries from Signa of over 250 million euros. (APA)