REPORT OF THE MANAGEMENT BOARD HYPO ALPE-ADRIA ...

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2002 

ANNUAL REPORT 

CROATIA

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CONTENTS 

Statement of the Chairman of the Executive Board 4 

Report of the Management Board Hypo Alpe-Adria-Bank d.d. 10 

Overview Hypo Alpe-Adria-Bank Group 11 

Summary Results Hypo Alpe-Adria-Bank Group 20 

Situation Report Hypo Alpe-Adria-Bank d.d. 26 

Financial Statements 47 

Notes to the Financial Statements 54 

Report of the Supervisory Board 75 

Company Organs 76 

Branches 77 

Headquarters 78 

ANNUAL REPORT HYPO ALPE-ADRIA-BANK d.d. 3


4 ANNUAL REPORT HYPO ALPE-ADRIA-BANK d.d. 

STATEMENT OF THE CHAIRMAN 

OF THE EXECUTIVE BOARD 

Dear Stakeholder, 

The Hypo Alpe-Adria-Bank Group can look back on 

a particularly successful 2002. While others in the 

financial sector are warning of narrowed margins 

and falling profits, we are happy to be counter-cyclical. 

The Group’s profit (on ordinary activities) in 2002 

has climbed by more than 50 percent. This 

outstanding performance is the fruit of many years 

of painstaking work and the product of a strategy 

which the rest of the industry has only recently come 

to accept as correct and profitable. 

Hypo Alpe-Adria-Bank first propounded its Alps to 

Adriatic strategy in 1993: this has been developed 

into a network which by now consists of over 200 

branches in seven countries. The existence of this 

network enables us to offer our customers a level of 

service unrivalled in the region. We see this economic 

region of Southern Europe as enjoying a compelling 

business logic of its own, and this determines our 

long-term overall strategy for the individual countries. 

The combination of highly developed business 

cultures such as those of Northern Italy and Austria 

with the growth markets of Slovenia, Croatia and 

Bosnia-Herzegovina, and now Serbia-Montenegro 

as well, was our logical starting point. Hypo Alpe- 

Adria-Bank Group and the network it has built up is 

one of the major conduits of business and finance 

in the region. 

What is the reason for our present success? We 

believe it is our decentralised structures for day-today 

operations. These mean that our staff must be 

in the closest possible touch with their customers, 

bearing in mind that in the last analysis “banking 

business is people business”. 

Our senior management and Executive Boards, who 

are ultimately responsible for their respective 

countries, must prove the success of their businesses 

in the marketplace on a daily basis. To do this, they 

must develop their own individual strategies and 

mechanisms for providing exceptional service to 

customers. Group headquarters controls the 

procurement of funds and the availability of capital, 

and manages the work of budgetary and other 

control functions, but always with appropriate self- 

restraint and without the authority to overrule 

decisions. This ensures that independent enterprises 

can not transfer responsibility back to headquarters. 

The future of the Group lies in this region, where we 

already have a presence in seven countries. It is a 

region in which – in the light of its extraordinary 

potential for growth in the next 10 to 15 years – it will 

not even be possible to take advantage of all the 

opportunities that arise. In this environment Hypo 

Alpe-Adria’s natural growth rate can be expected to 

be in excess of 10 percent annually, whatever the 

effects of the economic climate generally. 

The seven countries we service give us ample room 

for growth in the future, and we do not therefore 

intend to extend the Alps to Adriatic strategy to other 

countries. However, the importance to us in business 

terms of Southern Germany and Switzerland means 

that we shall in due course be establishing 

representative offices in these countries. And the 

economic importance of ex-Yugoslavia is becoming 

increasing clear, so that we need to create initial 

contacts there. Our aim is to provide services to 

customers, both businesses and private individuals, 

who intend to invest long-term in the area and who 

wish to establish branches or to set up operations. 

Our aim is to be Business Bank Number 1 in the Alps 

to Adriatic region. 

The ownership of the Group is very stable and the 

joint owners of the Bank – Kärntner Landesholding 

and Grazer Wechselseitige Versicherung – are 

unequivocally committed to supporting it. Hypo Alpe- 

Adria-Bank Group is essentially the creation of a core 

team: it has grown over the year to have 2,900 staff 

and continues to evolve rapidly. In moral terms 

therefore, the staff are the most important 

stakeholders in the Bank: they recognise that the 

prime goal is to earn appropriate returns in order to 

be able to pursue a policy of high dividends and 

interest on capital invested. Additionally to this, we 

are determined to ensure that adequate capital for 

development is generated through our own efforts 

in order to remain independent of external influences. 

Our goal for the forthcoming years will be to maintain 

the independence and character of our institution


Dr. Wolfgang Kulterer 

and to continue to pursue our established strategy. 

In recent years we have seen many European banks 

engulfed by the successive waves of mergers. In the 

process, skills and traditions built up over decades 

have been destroyed, which is certainly a factor 

contributing to the prevailing economic weakness. 

When the finance community fails to function, the 

economy is deprived of the funding it needs. We also 

accept that a bank must be capable of bearing a 

sufficient share of risks: it must be willing – not just 

in theory but in practice – to provide risk finance and 

hence in exceptional circumstances to incur the 

danger of losing the capital ventured. 

Improving the Bank’s credit rating is a permanent 

challenge. We wish to be able to borrow on the best 

possible conditions in the international capital 

markets in order to be able to offer our customers 

refinancing on the most favourable terms. Hypo Alpe- 

Adria-Bank Group has twice been successful in 

obtaining a credit rating upgrade, most recently in 

2002. We are unperturbed by the planned abolition 

of the state guarantee, probably in 2009, since we 

are already working hard in anticipation of it. 

The Group, with its banking, leasing, consulting and 

other subsidiaries, has been the fortunate beneficiary 

of a visionary strategy which has been proved 

successful in practice, and we believe that we shall 

continue to enjoy great growth potential. Top 

management and our management teams are 

therefore confronted with tasks which are generally 

atypical in today’s economic climate. While the 

financial sector as a whole complains of falling 

revenues, we are happy to be able to report vigorous 

growth. Our main tasks in the forthcoming years will 

be to manage that growth selectively, to monitor the 

risks at all times and to establish considered credit 

risk profiles. This can only be achieved through highly 

motivated staff and management teams: we should 

like to thank them here for their special dedication 

and outstanding performance in the past year. In 

future years we shall continue to pay special attention 

to continuing professional education and the 

development of particularly gifted managers from 

our own ranks. 

With best regards 


Chairman of the Executive Board 

of the Hypo Alpe-Adria-Bank AG 




DISMANTLING BARRIERS 

UNITED HYPO – our motto in word and deed. Hypo 

Alpe-Adria-Bank Group philosophy is based on the 

idea of partnership across national borders, and the 

design and content of our annual report for 2002 

are intended to make it accessible to the reader 

regardless of language or nationality. Our goal is 

emotional understanding between partner countries, 

an awareness of differences and of the things we 

share, as a basis for fruitful cultural exchanges. 

The pictures of landscapes and towns are taken from 

Hypo Alpe-Adria-Bank’s image film, “Beyond 

Borders”, and convey an impression of the rich 

history and cultural heritage of the different regions 

and of their outstanding natural beauty. The 

atmospheric images are accompanied by poems by 

the countries’ best known poets, and this literary 

exchange is emphasised by highly polished 

translations of the poems into all our partner 

countries’ languages and into English, conveying 

poetically a sense of the different cultural identities. 

Language and image combine in equal measure in 

a partnership which in a metaphorical sense is as 

all-embracing, outreaching and forward-looking as 

Hypo Alpe-Adria’s corporate philosophy. The central 

pillar of this idea and of the Bank’s corporate strategy 

is respectful treatment of individual and cultural 

differences, as the basis of trust so essential to all 

partnerships. 

Culture, and literature most particularly, contributes 

immensely to tolerance of regional differences, and 

creates a climate in which visions of shared futures 

can flourish. 

Words and images know no borders, and this artistic 

contribution to Hypo Alpe-Adria-Bank’s annual report 

represents one more step on the road towards 

partnerships of shared interest and cultural transfer, 

through which mutual understanding and successful 

communication are strengthened, and the ideal of 

a shared Europe gradually becomes reality.



Dietmar Falschlehner 

THE EXECUTIVE BOARD OF THE 

HYPO ALPE-ADRIA-BANK AG 

Dr. Jörg Schuster 

Mag. Günter Striedinger 



01 

RAINER MARIA RILKE / EXPOSED ON THE CLIFFS OF THE HEART 

Exposed on the cliffs 

of the heart. Look, 

how tiny down there, 

look: the last village of 

words and, higher, 

(but how tiny) still one 

last farmhouse of feeling. 

Can you see it? 

Exposed on the cliffs of 

the heart. Stoneground 

under your hands. 

Even here, though, 

something can bloom; 

on a silent cliff-edge 

an unknowing plant 

blooms, singing, 

into the air. 

Rainer Maria Rilke was born in Prague in 1875 and died in Val Mont, Montreux 

in 1926 and is one of the most important poets of the twentieth century. 

8 ANNUAL REPORT HYPO ALPE-ADRIA-BANK d.d.


AUSTRIA 




REPORT OF THE MANAGEMENT BOARD 

HYPO ALPE-ADRIA-BANK d.d. 

Heinz Truskaller, B.Sc. 

2001 was a very dynamic year and, according to the 

results, very successful, and in 2002, the business 

strategy of the Hypo Alpe-Adria-Bank’s Management 

Board was, among other things, oriented towards 

increasing of the Bank’s market share and its 

improved positioning on the Croatian financial market. 

In 2002, the assets increased by 64% over that in 

2001, while the operating result grew by more than 

30%. In addition, the Bank’s number of clients both 

in the private and corporate sectors increased 

dramatically. 

The Croatian economy continued its stabilisation 

and consolidation trend in 2002, thus affecting 

significantly the Bank’s performance as well as its 

business results. Highly important projects at the 

state level, such as highway construction, added 

extra momentum to the economic development and 

new employment. Additional effects from investment 

activities in the public sector will be visible in the up 

coming period as well. 

The continued fall of interest rates for private and 

corporate finance represented an additional impetus 

to stable economic development, and Hypo Alpe- 

-Adria-Bank d.d. remained a trendsetter with its loan 

policy. The financing of private clients increased 

Igor Kodžoman, B.Sc. Zoran Sikirica, M.Sc. 

The Management Board 

more than 80% in 2002, while the financing of legal 

entities and the public sector increased by more than 

57%. The stronger growth of loans to private clients 

reflects a part of the Management Board’s strategy, 

to increase activities in dealings with individuals. 

These activities resulted in opening of new branches 

in Umag, Metković, Makarska, Velika Gorica, Čakovec 

and Varaždin. The growth of private deposits of more 

than 43% compared to that in 2001 only confirmed 

the clients’ confidence in the Bank. 

By mid-2002, following the Basel II guidelines, the 

Bank changed its internal organisation and adjusted 

to the needs arising from the increased business 

volume. 

The Bank expanded its range of products and 

services in order to provide its clients with better 

service. The Bank will continue with its investments 

and technological developments, especially those 

related to the payment system, Internet banking and 

card management. 

The most important milestones in 2003 will be the 

further development of the Bank’s internal 

organisation, a decrease in the intensity of assets 

growth as well as an improvement in the quality of 

services, either by introducing new products or 

enhancing the existing ones. 

Heinz Truskaller, B.Sc. Igor Kodžoman, B.Sc. Zoran Sikirica, M.Sc. 

President of the Vice-president of the Member of the 

Management Board Management Board Management Board


OVERVIEW HYPO ALPE-ADRIA-BANK GROUP 

THE ALPS TO ADRIATIC 

BANKING GROUP: UNITED HYPO 

Hypo Alpe-Adria-Bank Group, with its presence in 

seven countries, transcends national borders: its 

corporate philosophy is unique, and is responsible 

for the Group’s equally unique position in the 

economic region constituted by South Eastern 

Europe. While the new Europe had to learn how to 

grow together gradually, thinking on a larger scale 

than regionally and managing transnationally have 

long become second nature at Hypo Alpe-Adria. As 

far as its circumstances have permitted, its successful 

organic growth in a European region of great 

economic potential has put it ahead of its times. It 

has provided effective support for common 

economic and social interests while at the same time 

turning regional strengths and differences to good 

account. 

Hypo Alpe-Adria-Bank Group is thus a paradigm of 

successful cooperation across language barriers 

and national borders and a pioneer in the economic 

development of a new European region. 

With clearly defined shared goals in mind, the Group 

turns the abundant ideas and cultural diversity of the 

different regions to its own benefit and the common 

good of the people of the region. This is the engine 

of Hypo Alpe-Adria’s vigorous, international growth. 

The network is constantly becoming both more 

extensive and more closely meshed, a dynamic 

process benefiting both customers and business 

partners. It is a network binding many parts into a 

whole, truly a “United Hypo”. 

“BANKING BUSINESS IS PEOPLE BUSINESS” 

Global presence is a goal which Hypo Alpe-Adria- 

Bank is happy to leave to the global players. In the 

Alps to Adriatic region, with its cross-border markets, 

it is local market knowledge at a very personal and 

emotional level which is critical. One must know 

one’s opposite numbers personally in order to trust 

them. For this reason Hypo Alpe-Adria-Bank sees its 

relationships as partnerships, extending far beyond 

simple money matters. Success can only ever be 

achieved through human contacts, and it can only 

be measured in terms of personal relationships, so 

that partnership at a personal level is the Bank’s 

ultimate ideal. Respecting differences, growing 

together, sharing success – these are the 

cornerstones of partnerships with customers which 

are based on proven banking systems. 

CONCERTED ACTION 

SURMOUNTS ALL BARRIERS 

For someone living on the spot, a region is not merely 

a market, it is a living environment. The Alps to 

Adriatic region is home to Hypo Alpe-Adria-Bank 

Group, which is the only international finance group 

active throughout the region. 

The area contains 50 million inhabitants, spread over 

seven countries, and Hypo Alpe-Adria-Bank Group 

therefore speaks in many languages. The Group has 

powerful owners: 52 percent belongs to Kärntner 

Landesholding and the remaining 48 percent to 

Grazer Wechselseitige Versicherung. 

The network stretches from Austria through 

Liechtenstein into Italy and via Slovenia, Croatia and 

Bosnia-Herzegovina to Serbia-Montenegro, with an 

outpost in Brussels. It is ideally positioned for those 

already living here or hoping to find their home here, 

whether as individuals or as businesses. More than 

500,000 have in recent years decided to make Hypo 

Alpe-Adria-Bank their banking partner of choice. 

The Group’s three strategic business areas – 

banking, leasing and consulting – focus on a 

common goal: contributing to the prosperity of the 

Region and of the people who live in it. 

The management teams on the spot are 

independently responsible for developing successful 

market strategies and instruments for their home 

markets. The teams are highly professional and 

adaptive, know their own minds and – what is most 

important – have the ability to lead and to know what 

decisions have to be taken at what point. The parent 

company acts as support, arranging for the 

procurement of funds and the provision of capital, 

and managing the services provided by budgetary 

and other control units. 




PHILOSOPHY OF GROWTH 

Hypo Alpe-Adria-Bank Group has established itself 

as a strong and reliable partner to business. Its 

involvement in the individual countries of the region 

is always long-term, so that businesses operating in 

any of these countries have the certainty and security 

they need in order to develop their activities. 

The Group is actively involved in developing the local 

economies, and is thus contributing to the 

foundations of local prosperity. 

The preservation of independence and regional 

identity is one of the cornerstones of the Group’s 

philosophy: it gives our customers and business 

partners the certainty that they can transact their 

business with a dynamic and internationally minded 

bank which is also thoroughly at home in all the 

individual regions. 

Its expansion in the past years has given Hypo Alpe- 

Adria-Bank coverage of the area which in the coming 

years will become its home markets. Hypo Alpe- 

Adria-Bank Group intends to stick to the principle of 

encouraging growth – both quantitative and 

qualitative – within these boundaries. 

BANKING MANAGERS 

More than 2,900 highly motivated staff are our 

guarantee of success, a success based on 

professional expertise, qualifications and networked, 

transnational thinking and on staff who are happy 

to turn the opportunities offered by an international 

enterprise to good advantage. 

Hypo Alpe-Adria-Bank staff display this adaptability 

daily – both in their dealings with customers and in 

the course of their group-wide training and professional 

development. From trainee to manager, banking 

business is quite clearly people business. The Group 

invests heavily in the training of its staff – time, money 

and personal effort – which is what makes it one of 

the most attractive employers in the region. 

CONTINUING DYNAMIC GROWTH 

Impressive growth in all major business areas is 

reflected in Hypo Alpe-Adria-Bank Group’s numbers. 

While the financial sector is in general struggling 

with dwindling earnings, the Group has posted 

increases in almost all key performance indicators 

As a measure of its vigorous growth, total assets 

rose by 29.2 percent to EUR 9.8 billion. 

The operating profit of Hypo Alpe-Adria-Bank Group 

rose by 55.8 percent to EUR 162.8 million and profit 

on ordinary activities (POA) even increased by 

60.6 percent, to EUR 100.7 million. The return on 

equity climbed from 17.8 percent to 26.2 percent 

and the cost/income ratio was cut back from 

58.1 percent to 55.5 percent. 

With capital and reserves of EUR 660.7 million, a 

year-on-year increase of 38.9 percent, the Group is 

outstandingly well positioned for further growth. 

Lending volumes in the financial year were up 

26.0 percent to EUR 7.4 billion, while customer 

deposits grew to EUR 7.9 billion, an increase of 

29.3 percent. 

BANKING: THE CORE COMPETENCE 

The banking business requires the daily deployment 

– both locally and across borders – of the Group’s 

collective expertise in relation to the full range of its 

products and services. This core competence is 

available in all seven countries to both corporate and 

retail customers and includes settlement, financing, 

documentary credits and deposits business, as well 

as a comprehensive range of investment products 

and asset management services. 

The concepts of service and customer friendliness 

are at the heart of our efforts to make the full range 

of banking services available throughout our network 

as soon as possible. Last year we achieved significant 

advances in this respect. 

The customers who benefit most from Hypo Alpe- 

Adria’s rich network of branches, products and 

services are those engaged in import-export 

business, where there is a need for a strong and 

reliable partner in the respective markets to provide 

timely and clear-cut international settlement services, 

unbureaucratic export finance, forfaiting and 

confirmed documentary credits.


By financing capital investment Hypo Alpe-Adria- 

Bank Group is providing the essential prerequisites 

for rapid economic growth in these countries. Such 

industries as tourism, manufacturing, retailing, real 

estate and agriculture all require immense quantities 

of capital in order to strengthen their ability to 

compete in the long term. 

Lending in the private sector is characterised by a 

range of adaptable products specially designed for 

financing residential property. The existence of first 

class security, usually in the form of mortgages, 

means that the Bank’s risks are minimal. 

Hypo Alpe-Adria-Bank prides itself on its savings 

products, which include all the latest features and 

are offered on very attractive terms. That savers 

frequently choose the long-term deposits are a mark 

of their confidence in the Group. Recent changes 

in legislation in some of the countries Hypo Alpe- 

Adria-Bank serves have created ideal conditions for 

further growth in this segment. 

In Italy, Austria and Liechtenstein, and to a certain 

extent in Croatia (there are still tax restrictions in force 

here) the Bank offers a high-level service in private 

banking, asset management and in dealing in 

securities and investment funds for private customers, 

corporates and municipal and regional authorities. 

In Austria and Italy the Group intends to focus its 

securities activities on commissions business. This 

business segment has great potential, particularly 

in Croatia, and this is to be fully exploited within the 

next five years. Development in Slovenia is already 

in full swing, while in Bosnia-Herzegovina attention 

is concentrated more on privatisation funds and 

broking. In this market sector Liechtenstein provides 

important business, mainly in the area of traditional 

investment forms. 

In this last year emphasis in established markets was 

on new issues of investment funds: successes were 

registered both with the Group’s own products and 

with third party products. 

E-BANKING 

The strategy of Hypo Alpe-Adria-Bank Group in the 

e-business sector encompasses information, service 

and transactions. In line with the Group’s multi-channel 

strategy, the Internet is used as an additional 

distribution channel and also to extend the range of 

services offered. The website is used to provide 

information and customer service, and to allow 

customers to transact business. The use of the latest 

technology, which is user-friendly, cost-effective and 

efficient not only has a positive effect on the Group’s 

image but also creates a new channel for customer 

relationship management. 

The potential is enormous, and is being constantly 

developed. E-banking applications are regularly 

updated to meet customer requirements and to 

reflect the latest technical and security standards. 

Hypo Alpe-Adria-Bank Group has implemented 

appropriate applications wherever it operates and 

tailored them to customer needs and local conditions. 

Services offered range from e-banking for private 

and corporate customers to HYPOnet e-banking in 

Slovenia and Croatia and home banking in Italy. All 

the products meet the highest security standards 

and use not only the PIN/TAN technology but also 

digital signatures. 

A relaunch of the website is planned for May 2003. 

LEASING: THE GROUP’S GROWTH ENGINE 

More than 30,000 customers have already opted for 

Hypo Alpe-Adria’s attractive lease financing solutions, 

making the Group into market leader in the Alps to 

Adriatic region. 

The Hypo Leasing Group has the largest network in 

the region and has paid constant attention to 

developing its markets in the various countries. The 

knowledge and expertise acquired in entering one 

market leads to synergies in subsequent ventures 

elsewhere, so that each new leasing business very 

quickly becomes profitable. 




Through innovative products and the use of the 

various tax advantages available from country to 

country Hypo Leasing Group with 28 locations and 

300 employees has achieved dominant market shares 

in leasing of motor vehicles and other movable 

property and also in niche markets such as ship 

financing and production machinery. It also offers 

special cross-border leasing. Hypo Leasing Group’s 

ties with business partners in the car, commercial 

vehicle and machinery industries are a great asset to 

its customers. 

Hypo Leasing’s preeminence in ship financing is 

based on the comprehensive expertise developed 

through more than ten years of specialisation in the 

sector. Beginning in Austria, it now markets its 

products in all the countries in the Region. In the 

vehicle leasing sector there are appropriate solutions 

both for private individuals and for businesses. 

In more traditional fields such as real estate leasing, 

commercial customers can rely on the extensive 

experience of Hypo Leasing Group, which is 

increasingly also in demand for financing in the public 

sector, involving government buildings, kindergartens, 

schools or multi-purpose buildings. Its professional 

expertise, its knowledge of the legal and taxation 

differences between the individual local markets in 

the Alps to Adriatic region, its streamlined processing 

of agreements and its long years of experience all 

help to make Hypo Leasing Group a force to be 

reckoned with in this market. 

The different types of agreement – full payout, 

residual value, deposit and cross-border leasing are 

tailored to the customer’s precise requirements. 

Clients can rely on all services of an international 

banking group. As an international enterprise with 

a presence in many countries, Hypo Leasing Group 

has a regional network of extremely competent staff. 

For the customer this means great flexibility and for 

export oriented businesses it opens up new markets 

and offers new opportunities through cross-border 

leasing, which is Hypo Leasing’s particular strength 

in Austria. 

CONSULTANTS – 

THE LOGICAL COMPLEMENT 

The focus of activities in this business area is on 

forming project companies, on initiating investment 

in companies and on providing external experts in 

all fields. Other activities include the management 

of strategic real estate projects and property 

development projects for the whole Hypo Alpe-Adria- 

Bank Group. 

The fields in which the consultants work are exactly 

tailored to the requirements of individual countries. 

What they have in common are customer orientation, 

innovation, the partnership approach to service and 

trust and security – this is what ensures the 

international success of the Group in this area. 

The companies involved are represented in all the 

countries of the Alps to Adriatic region, with the 

exception of Liechtenstein. The aim is be available at 

all times as a qualified partner and adviser to 

customers, and to the rest of the Hypo Alpe-Adria- 

Bank Group, in fact to all those wanting to expand 

their activities in the region. 

The Hypo Alpe-Adria-Bank network is continually 

being enlarged and extended and synergies with 

the Bank’s other services are fully exploited. This 

ensures that invested capital is used to the best 

possible advantage. The Bank’s extensive experience 

in the region makes it possible for it to support and 

advise on activities that span national borders. 

TOP QUALITY RATING – 

EXCELLENT FINANCIAL STANDING 

Credit ratings are conferred by internationally famous 

rating agencies after comprehensive reviews of 

enterprises’ activities: a bank’s credit rating is its 

visiting card. 

It is all the more satisfactory that Hypo Alpe-Adria- 

Bank’s rating has recently been raised: Moody’s, a 

household name worldwide, upgraded the Bank in 

third quarter 2002 from Aa3 to Aa2. This means that 

Hypo Alpe-Adria-Bank’s rating has now been raised


twice in a row – no other enterprise in the financial 

sector can boast a similar achievement. 

The reason for the upgrade is not only the improved 

economic situation of the Province of Carinthia, the 

52 percent owner of Hypo Alpe-Adria-Bank, but also 

the performance and financial solidity of the Hypo 

Alpe-Adria-Bank Group. 

The Bank’s conservative philosophy and cautious 

approach to involvement in the volatile and unpredictable 

equities and bonds markets has paid off. 

The upgrade is all the more remarkable because this 

past financial year has seen a whole series of 

international banks having their ratings downgraded. 

The Bank’s further improvement in rating makes it 

possible for it to raise capital in international markets 

on the most favourable terms and thus to provide 

financing on the best conditions to its subsidiary 

banks in the individual countries. 

SUCCESS IN INTERNATIONAL 

CAPITAL MARKETS 

Hypo Alpe-Adria-Bank Group’s exceptional reputation 

in international capital markets was underlined in 

the most convincing way by the successful issue of 

a benchmark bond with a total value of EUR 650 

million. Demand far exceeded supply. With this issue, 

the Group has joined the ranks of major European 

issuers. For the experts its success was attributable 

both to the excellent performance of the Hypo Alpe- 

Adria-Bank Group and to its new rating, which was 

recently raised by Moody’s, one of the world’s most 

renowned agencies, to Aa2. 

The Group has further consolidated its standing in 

international capital markets during the past year by 

making issues totalling EUR 1.8 billion and topping 

up its debt issuance program from two to four billion 

euros. Hypo Alpe-Adria-Bank achieved exceptionally 

good results in derivatives and foreign currency 

trading, in part better even than those of 2001. 

The securitisation of leasing business by the Bank’s 

Italian subsidiary marked a further step in innovation. 

More than 250 million euros’ worth was placed in 

the markets. 

CHALLENGE OF BASEL II 

Perhaps no other subject has so affected the European 

finance community as Basel II. The proposed 

agreement, which sets new rules internationally for 

lending, poses new challenges not only to the banks 

but also to their staff. 

Hypo Alpe-Adria-Bank has stolen a march on Basel II 

and has in various areas already implemented its 

suggestions. In Austria it has for a considerable time 

already applied the most modern techniques to the 

risk-related assessment of credit exposures. With 

the purchase of a new rating system in the summer 

of 2002 which is also suitable for risk assessment 

of customers of the Bank’s foreign operations, a 

further increase in quality for the Group as a whole 

has been achieved. 

As the result of its thorough preparations, Hypo 

Alpe-Adria-Bank is already best equipped to face 

the challenges of Basel II in the future and to comply 

with the new regulations concerning capital 

adequacy requirements. 

EFFECTIVE GROUP RISK MANAGEMENT 

An effective system of risk monitoring and control is 

one of the prerequisites of successful and profitable 

banking. Risk management identifies and analyses 

the structures and processes necessary in order to 

be able to evaluate risk situations and to draw the 

necessary conclusions for business activities and 

their management. It is the goal of Hypo Alpe-Adria- 

Bank Group to take risks where this represents a 

reasonable opportunity to diversify profitably, and 

consciously to avoid them otherwise. 

Responsibility for risk management is shared by two 

units, Group Risk Controlling and Group Market 




Support, both reporting directly to the Executive 

Board. They assess market, credit, operational and 

default risks. 

Group Risk Controlling is responsible for setting 

standards for continuous, practical and integrated 

risk measurement for all types of risk and for 

establishing groupwide uniform standards for risk 

control. It also monitors risk limits and is responsible 

for the comprehensive reporting system on which 

management decisions are based. 

Group Market Support is responsible for the design 

and implementation of a uniform credit management 

process for the Group, for credit risk assessment in 

general, for risk estimation for individual transactions 

and for independent assignment of credit ratings. 

Hypo Alpe-Adria-Bank is currently implementing a 

value-at-risk model to be used in the continuous 

assessment of price risks arising in connection with 

positions in currencies, shares and fixed income 

securities. In view of the Group’s concentration on 

customer business, the trading book is relative limited 

in size. 

Groupwide harmonisation of credit processes began 

in the course of last year with the aim of making 

management of credit risk uniform throughout the 

Group. For the purposes of quantitative and qualitative 

credit risk mitigation and control, a standard rating 

and scoring model has been introduced. 

Operational risks resulting from unexpected losses 

caused by human error, natural or other 

catastrophes together with strategic, reputational 

and business risks are captured in a database being 

built in collaboration with our computer centre 

(Allgemeines Rechenzentrum, Innsbruck), in order 

to establish appropriate processes and control 

procedures. 

Group risk management will continue to be 

developed and refined. The overall aim is to merge 

existing units into a central system and to implement 

control techniques which will satisfy the guidelines 

and requirements of Basel II. 

ARCHITECTURAL LANDMARKS 

Hypo Alpe-Adria-Bank Group requires a unique and 

unmistakeable architectural style to express its 

corporate identity. 

With the opening of the new, avant-garde Group 

headquarters in Klagenfurt in 2001, designed by the 

Californian architect Thom Mayne, which is clearly 

one of the jewels of modern Austrian architecture, 

Hypo Alpe-Adria-Bank has established a striking 

symbol of modernity, transparency and openness. 

The headquarters of Hypo Alpe-Adria-Bank d.d. 

currently under construction in Zagreb, and the new 

building for the management of Hypo Alpe-Adria- 

Bank S.p.A. in Udine also bear the traces of his 

forceful and individual hand. 

FOCUS ON GROUP COMMUNICATIONS 

For an international concern such as Hypo Alpe- 

Adria, communication between subsidiaries in the 

different countries, with their different languages and 

different cultures, is of particular importance. 

The paramount objective is to ensure that the chosen 

corporate identity and corporate image is accorded 

the same attention and respect everywhere, while 

due tribute is paid to specifically regional attributes. 

PR International is the focal node for Group 

communications and is responsible not only for


fostering creative innovation in the dynamic Hypo 

Alpe-Adria-Bank spirit but also for developing 

groupwide expressions of its shared corporate image. 

These include the design and coordination of 

international motivation events for Hypo managers, 

where senior management of the Group are briefed 

on policies and current events and where the 

people in the Hypo family are brought together in 

the “United Hypo”. 

OUTLOOK 

For Hypo Alpe-Adria-Bank Group 2003 will be another 

year of dynamic growth in existing markets and across 

all business areas. Some of the immediate objectives 

include the roll-out of full banking services in Serbia, 

the integration of Kristal Banka in Bosnia and 

Herzegovina and a stronger presence in Liechtenstein, 

together with the establishment of representative 

offices in the highly developed economies of Southern 

Germany and Switzerland. 

Increasing internationalisation and rapid economic 

growth in recent years make necessary structural 

changes within the Group. With the aim of creating 

accurate and understandable costing systems and 

clear structures within the Group, the start of 2003 

saw the organisational separation of Austrian banking 

business from all staff functions. This represents the 

first step towards a clearly structured finance group 

within which regional banks of equal status do 

business independently under the umbrella of a 

central holding company. 

Hypo Alpe-Adria-Bank Group plans to continue its 

successful activities in the international capital 

markets in 2003 and to place largely longer-term 

issues with a total value of some EUR 2 billion with 

international institutional investors. The Group also 

plans to launch its first “Alpe-Adria Real Estate Fund” 

as part of its Alps to Adriatic strategy. 

And as part of its plan to be the Number 1 Business 

Bank in the region, it intends to concentrate on 

making its network in its existing markets even more 

comprehensive and thus to exploit the almost 

unlimited potential for growth in these markets. Hypo 

Alpe-Adria-Bank Group expects its average annual 

growth rates to exceed 10 percent. This growth will 

need to be controlled, in order to avoid unwanted 

risks, and this will be one of management’s most 

crucial tasks in the years to come. 



02 

PIER PAOLO PASOLINI 

My village rings 

festively at midday. 

Go to the meadows! 

You are always 

the same, bell, and 

with consternation I 

come back to your voice. 

“Time stands still: 

consider the laugh 

of the fathers, 

like rain in the branches, 

in the eyes of the children”. 

Pier Paolo Pasolini, born in Bologna, Italy in 1922, died in Ostia in 1975. 

He worked as a poet, writer, essayist and filmmaker. 



ITALY



SUMMARY RESULTS 

HYPO ALPE-ADRIA-BANK GROUP 

The ongoing acquisition of new customers together 

with the opening of new branches and offices means 

that Hypo Alpe-Adria-Bank Group is one of the 

leading international business banks in the Alps to 

Adriatic region and among those with the densest 

networks in the area. 

AUSTRIA: FROM BANK TO BANKING GROUP 

Hypo Alpe-Adria-Bank has continued to grow as 

planned and looks back on another successful year. 

From its core market and base in Carinthia and its 

outlying branch office in Vienna, Hypo Alpe-Adria- 

Bank provides a comprehensive range of financial 

services to customers all over Austria. The continuing 

internationalisation and rapid growth of the Bank in 

recent years mean that the year will be marked by 

further organisational changes. As a first step, the 

Austrian parts of the business have been grouped 

in a separate business area, and in 2004 will be 

transferred into a new subsidiary, Hypo Bank 

Österreich. This reorganisation will make the Austrian 

part separately accountable within the Hypo Alpe- 

Adria Group, and its performance will be easier to 

monitor. 

ITALY: BANKING SUCCESS IN FIERCELY 

CONTESTED NORTH ITALIAN MARKET 

With some 400 staff employed in 34 locations and 

in the field, Hypo Alpe-Adria-Bank S.p.A. continued 

its successful course in 2002, with customer numbers 

rising by 15.1 percent. In the fiercely competitive 

banking market of Northern Italy, Hypo Alpe-Adria- 

Bank S.p.A. describes itself as the “three-dimensional 

bank”, an allusion to the three pillars of its operations 

– the Bank, Agenti Leasing (leasing agents) and 

Promotori Finanziari (finance agents). 

Hypo Alpe-Adria-Bank S.p.A focuses principally on 

small and medium-sized enterprises. This niche 

philosophy has enabled it to expand its market share 

across the board and raise its total assets in the past 

year from EUR 1.3 billion last year to EUR 1.7 billion. 

Operating profit climbed 54.0 percent to EUR 24.7 

million and profit on ordinary activities was up by 

47.8 percent to EUR 21.1 million. 

To strengthen brand presence and make the network 

of branches denser, four new branches were opened 

last year, in Erba, Udine Centro, Rovato and Treviso. 

The decisive competitive advantages in this 

development have been swift decision-making, lean 

organisation, the international Alps to Adria network 

and the depth of expertise in all fields, resulting in 

early recognition of market trends and rapid 

adaptation to new customer requirements. Promotori 

Finanziari and Agenti Leasing , the two external sales 

networks, have also made major contributions. The 

leasing agents’ network, which stretches from Udine 

to Domodossola, was further strengthened in 2002, 

while the network of finance agents was extended 

and now consists of more than 80 agents. 

Leasing grew most satisfactorily in the past year, and 

total financing rose from EUR 920.7 million to EUR 

1.3 billion. With some 20 business partners under 

contract in Friuli, Venezia Julia, Lombardy and the 

Veneto, Hypo Leasing in Italy can count on particular 

closeness to the customer. 

SLOVENIA: MASSIVE GROWTH IN 

PRIVATE AND CORPORATE SECTOR 

Hypo Alpe-Adria-Bank in Slovenia again grew 

substantially in 2002. It was helped by the strong 

growth of Slovenia’s economy, and also by the 

general improvement in the economic situation in 

Central and Southern Europe. 

The Bank’s total assets in the past year increased 

by 51.1 percent to EUR 260.7 million, while the 

industry as a whole only grew by 15.9 percent in the 

same period. The operating profit grew by a colossal 

278 percent to EUR 3.8 million and profit on ordinary 

activities amounted to EUR 1.1 million.


The growth in the number of the Bank’s private and 

business customers is also impressive – 61 percent 

and 60 percent respectively. 

In Slovenia Hypo Alpe-Adria-Bank has a satisfactory 

market share of customers with higher-income and 

in urban areas and intends to build on this further. 

During the year, the bank has invested in internet 

banking as a major, additional distribution channel. 

A comprehensive risk monitoring and management 

system was introduced, in order to reduce costs. In 

the banking area the Slovenian Hypo Alpe-Adria- 

Bank d.d. will in future concentrate on qualitative 

growth and innovative products, predominantly in 

insurance and in asset management. 

As with Hypo Alpe-Adria-Bank Group in many of the 

countries it operates in, the leasing company in 

Slovenia is the country’s undisputed market leader 

with a roughly 30 percent market share in 2002. Year 

end total assets rose to EUR 532.7 million, while 

operating profit for the year climbed 36.2 percent. 

The leasing company is concentrated on commercial 

leasing, with real estate, movable property and 

vehicles providing the bulk of the business. In this 

connection, a notable achievement last year was the 

conclusion of a financing agreement for EUR 30 

million, the largest single deal to date, for the 

extension of a logistic centre for a large trading 

company. 

BOSNIA AND HERZEGOVINA: COUNTRY-WIDE 

COVERAGE THROUGH NEW ACQUISITION 

Hypo Alpe-Adria-Bank Group successfully entered 

the market in Bosnia and Herzegovina in 2001. The 

past year saw the Bank become a reference 

institution in the Region. 

Total assets as at 31 December 2002 had risen 

from EUR 120.1 million at the end of the previous 

year to EUR 256.2 million. The operating profit for 

the year grew from EUR 1.6 million to EUR 11.4 

million and profit on ordinary activities amounted 

to EUR 8.1 million. 

Against an economic background which continues 

to be difficult, Hypo Alpe-Adria-Bank sees itself as a 

partner in the true sense, not only making finance 

available to private and corporate customers alike, 

but also actively helping to shape the process of 

economic reconstruction. 

With the acquisition of a controlling majority in 

Kristal Banka a.d., a former state bank, in May 2002, 

Hypo Alpe-Adria-Bank continued its policy of 

expansion and is now also represented in the 

Serbian part of Bosnia and Herzegovina. The bank 

is based in Banja Luka and has 24 branches and 

264 employees. Just as with the takeover of what 

is now Bosnia-Herzegovina Hypo Alpe-Adria-Bank 

d.d., concerted efforts are now required to integrate 

the bank into the Group and to provide the standard 

range of banking services, particularly finance for 

private customers. 

Including Kristal Banka a.d., Hypo Alpe-Adria-Bank 

now has 51 branches and more than 520 staff and 

covers the whole of Bosnia and Herzegovina, ranking 

it among the three largest banks in the country. 

For Hypo leasing in Bosnia and Herzegovina, 2002 

was the first complete business year: already it is 

profitable and has achieved market leadership. The 

leasing company principally finances corporate 

customers and municipalities. A major goal for 2003 

is to increase private customer business. 




OPENING UP THE MARKET 

IN SERBIA AND MONTENEGRO 

In October of last year Hypo Alpe-Adria-Bank Group 

acquired a majority in the Serbian Depozitno-Kreditna 

Banka, which is based in Belgrade. Now trading as 

Hypo Alpe-Adria-Bank a.d., the bank currently has 

total assets of EUR 8.3 million and 50 staff. 

This acquisition represents the first stage of entry 

into a new and developing market and is intended 

to form the basis for an extensive branch network 

serving not only small and medium-sized enterprises 

but also private customers. 

The bank is expected to commence business 

operations in the second quarter of 2003. 

The leasing company signed its first agreements in 

November 2002 and is primarily involved in financing 

the vehicles, machines and transport equipment of 

small and medium-sized businesses. Private 

customer business will be built up later. 

COMPETENCE CENTRE: PORTFOLIO 

MANAGEMENT IN LIECHTENSTEIN 

Following the takeover of Investment und 

Portfoliomanagement Bank AG in September 2002, 

Hypo Alpe-Adria-Bank Group now also has a banking 

presence in Liechtenstein. 

Becoming part of Hypo Alpe-Adria-Bank has already 

in the first year of the merger had a very positive effect 

on the former private bank, which specialises in 

portfolio management and advice. 

Total assets last year came to some EUR 54.9 million, 

and the operating profit was roughly EUR 1.2 million. 

In the current year Hypo Alpe-Adria-Bank in Liechtenstein 

can be expected to make further progress. 

building on the dense network of outlets in the fastgrowing 

Alps to Adriatic region. The aim is to use the 

Group’s international presence to identify the needs 

of Hypo Alpe-Adria-Bank customers for Liechtenstein 

services. In collaboration with other companies in the


Group, its aim will be to make high quality services 

available throughout the market in order to match 

customers’ requirements as precisely as possible. 

Since Hypo Alpe-Adria-Bank is the only bank in 

Liechtenstein representing the interests of customers 

from the economies of South Eastern Europe, there 

are additional opportunities open in Liechtenstein 

for Hypo Alpe-Adria-Bank and the other banks in the 

Group, which can thus make contact with potential 

investors from Western Europe. 

The Principality of Liechtenstein has in the last 

40 years enjoyed an economic and cultural flowering 

out of all proportion, comparatively speaking, to that 

enjoyed by any other western country. 

BRUSSELS REPRESENTATIVE OFFICE 

Over the past years Hypo Alpe-Adria-Bank has 

established itself successfully in the markets of the 

Alps to Adriatic region by applying a cross-border 

approach with special regional emphases. It decided 

in 2000 to set up a representative office in Brussels, 

as European capital, in order better to further its 

interests and to protect the uninterrupted future 

growth of the Group, bearing in mind that today 

roughly 80 percent of all statutory regulation affecting 

the banking and finance industries originates in 

Brussels. The representative office is responsible for 

the collection and dissemination of information, for 

establishing contacts and for lobbying bank 

representatives, members of parliament and 

Commission representatives. 

Based on these activities and using the contacts 

developed locally, Hypo Alpe-Adria-Bank has been 

able to extend, exploit and strengthen its network 

of international contacts in support of its 

transnational competences as bank in the Alps to 

Adriatic region. 

(The amounts for total assets, operating profits and profits on ordinary 

activities discussed above are as disclosed in the consolidated 

financial statements (HB II) of Hypo Alpe-Adria-Bank Group) 



03 

ANTUN BONIFAČIĆ / WAVES 

The waves come 

one to another. 

I await them swimming 

as of old. 

I sway lightly on the 

crest of every wave 

like the gulls. 

I become one with 

the open sea, 

that knows no borders. 

Antun Bonifačić was born on the Island of Krk in 1901. 

A famous Croatian poet, novelist, essayist and translator. He died in exile in 1986. 



CROATIA



SITUATION REPORT 

THE ECONOMIC BACKGROUND 

2002 marked a continuation of growth for the 

Croatian economy, with GDP expanding an estimated 

5,2%. Domestic consumption, and to a great degree 

also investments, were the main contributors to the 

aggregate. The kuna remained extremely stable 

against the euro, supporting domestic demand. 

The performance of global economies (0,8%e) did 

not have a negative effect on the Croatian economy, 

as domestic tourism even profited from global travel 

trends, brought about by the events of September 

11th. International political relations remained frozen 

by questions concerning co-operation with the War 

Crimes Tribunal for the former Yugoslavia (ICTY) on 

the extradition of alleged war criminals. This 

temporarily led to a split in public opinion over further 

co-operation. However, the domestic political scene 

stabilized after a cabinet reshuffle in July and 

leadership changes in the main opposition party. It 

should be stressed that Croatia closed a new 14- 

-month precautionary stand-by agreement with the 

International Monetary Fund (IMF) worth USD140m 

in December, as the country wanted the deal viewed 

as a “seal of approval” for its international financial 

standing in the upcoming electoral year. The deal 

commits Croatia to fiscal discipline in 2003, targeting 

a consolidated government deficit of 5.0%. Croatia 

also signed an accession agreement with the CEFTA 

and started to prepare its application for European 

Union membership. 

The essential tourist industry enjoyed its best season 

since the record year of 1989. The inflow of tourists 

appeared to be immune to the deterioration in global 

security and the country saw a 3% rise in the number 

of tourist overnight stays over the high numbers in 

2001. Industrial production rose by 5.4%, whereas 

the important manufacturing sector was boosted by 

a strong performance in the production of food, 

beverages and chemicals. 

Privatisation attempts have sped up with the sale of 

a 20% stake of Privredna banka (EUR=139,5 million), 

85% of Riječka banka (EUR=100 million) and Splitska 

banka (EUR=37,7 million), thus consolidating the 

banking sector. However, the government missed 

its 2002 target of HRK=2,5bn by a large margin 

(approx. HRK=420 million), as Croatia osiguranje 

(an insurance company) and a number of smaller 

companies were not sold. Positive effects for the 

economy should be felt from the privatisation of the 

state oil and gas firm INA and finally of Croatia 

Osiguranje. 

The labour market remained a problematic area, with 

an average unemployment rate of record high 22.5%. 

The start of the restructuring process in the public 

sector as well as structural problems in the 

manufacturing sector took the largest toll. In order to 

make the domestic labour market more competitive, 

the Croatian Parliament began working on legislation 

to make the new labour law more flexible, allowing 

for easier job creation. 

The kuna weakened slightly (-0.98%) against the 

euro, but strengthened by 14.48% against the US 

dollar. This was a consequence of the appreciating 

euro against the US dollar. The value of the kuna 

helped to strengthen import growth. Consumer price 

inflation dropped to 2.3% in 2002 from 3.3% the 

previous year due to trade liberalization, and this 

was still possible despite a 55% increase in energy 

prices. 

The power of domestic demand, fuelled by cheaper 

bank loans, prompted concerns about the large size 

of Croatia's trade deficit, which rose by 29.8% to a 

record-breaking USD=5,814.8m for FY02. But 

significant tourist inflows once again provided a 

cushion for the trade gap, narrowing the deficit. 

Consequently, Croatia faced a modest increase in its 

current account deficit from 3.2% (of the GDP) in 2001 

to 6.9% in 2002, and the 2003 CAD is unlikely to 

exceed 5% of the GDP. The external balance remained 

sustainable as FDIs accounted for 67.1% of 2002 CAD, 

but being far below the planned figures (see above). 

The improvement in the general government deficit 

from 7.1% in 2001 to 6.2% in 2002 was achieved by 

reducing social transfers and axing public sector jobs, 

particularly those in the defence area. This reduction 

was a precondition for IMF support. 

Croatia's debt dynamics (the external debt/GDP ratio 

was 67.9% as compared to the 57.3% in 2001) is an 

area of concern, as the government has strayed from 

international to domestic financing, increasing the 

latter at the expense of the former. According to the 

IMF stand-by agreement, Croatia should not exceed 

an external debt/GDP ratio of 57.5%. From a ratings 

perspective the otherwise strong macro-figures (strong 

GDP growth, falling inflation, stable CAD and sound 

FX reserves) would justify a ratings upgrade. The start 

of the second stage of the pension system reform in 

May has incurred transition costs, that will, in the 

medium term, bring about a reduction in pension 

costs for the state, and this will have a positive impact 

on public debt.


In a bid to further reduce interest rates and to relieve 

appreciation pressures on the kuna, in April 2002 the 

Croatian National Bank cut the lombard rate by 50 bps 

to 9.5% and trimmed the remuneration rate on the 

kuna obligatory reserve requirement from 2% to 1.75%. 

Ample liquidity was pumped into the economy as 

interest rates (-126bps) fell gradually over the year and 

credit activity increased by more than 30% in 2002, 

supporting investments into production units. 

THE RESULTS (INCOME) 

– increase in non-interest income of 57% 

– constant return on equity ratio (ROE) of 21% 

– balance sheet increase of 64% 

The operating results of Hypo Alpe-Adria-Bank d.d. 

increased considerably from HRK=209,539 million 

(EUR=28,431 million) in 2001 to HRK=272,751 

million (EUR=36,649 million) as of 31.12.2002 (31%), 

representing 3.26% of the average total assets. This 

increase reflected the dynamic growth in 2002 (a 

64% increase in the balance sheet). 

Although interest income remained the main source 

of income (net interest income HRK=350,600 million 

/ EUR=47,109 million; a 38% increase in 2002), noninterest 

income (HRK=111,108 million / EUR=14,929 

million) showed a significant increase, by 56% in 

2002 (net commissions income, F/X net income, 

gains arising from investment in securities and other 

income). The non-interest income was generated in 

2002 by increased business in Domestic payments, 

Investment Banking and International Trade area. 

The main focus for the banking business in the year 

2003 will be the reduction of the Bank’s dependence 

on interest sensitive income. 

STRUCTURE OF OPERATING INCOME 2002 

9% Net commission income 

8% F/X net income 

5% Gains arising from investment in securities 

3% Other operating income 

75% Net interest income 

This increased volume of business was consequently 

accompanied by an increase in operating expenses 

of 63%, which was expected because of the 

expansion of the branch network throughout Croatia 

and new investments. Therefore, the growth of costs 

remained at a satisfactory level. Furthermore, a 

restrictive expense policy will follow in 2003, 

accompanied by the development of methods to 

generate future income through the Bank’s services. 

The cost-income ratio (CIR) increased from 35.4% 

(the average of the most important banks was in the 

range of 43%-63%) to 40.9%, which is still a very good 

ratio. 

With regard to risk assessment and provisioning, in 

previous business years we had already created a 

sound basis for coverage against potential future 

losses. Thus, we were in a position that enabled us 

to keep this level. Combined with an emphasis on 

the collection of outstanding debts, we had to transfer 

the total amount of HRK=109,390 million 

(EUR=14,698 million) to our risk provisions and 

non-identified risks. 

As a result of all these measurements and 

developments, the Bank was able to maintain a stable 

return on equity (ROE) ratio (21.35%), too. 

In 2003 Hypo Alpe-Adria-Bank d.d. will try to maintain 

its strong position in the Croatian banking market 

and continue with controlled growth. 

75% 

9% 

8% 

5% 

3% 



1997 307,569 

1998 1,096,487 

1999 2,242,455 

BALANCE SHEET TOTAL 

in 000 HRK 


2000 3,858,877 

2001 6,330,087 

2002 10,386,677 

CAPITAL 

During 2002, Hypo-Alpe-Adria-Bank d.d. raised its 

shareholder capital by HRK=134,236,000 

(EUR=19,036,917), due to the conversion of 

dividends for 2001 and conversion of part of the 

subordinated instruments from its principal 

shareholder, Hypo Alpe-Adria-Bank AG, Austria. 

Since 2002, the EBRD, Great Britain, is no longer 

1997 -1,826 

1998 25,933 

105,293 

OPERATING RESULT 

in 000 HRK 

135,288 

209,538 

272,751 

present in the ownership structure of Hypo Alpe- 

-Adria-Bank d.d. 

The capital adequacy ratio in 2002 remained at a 

very satisfactory level (between 18 and 22%). 

The structure of the shareholder capital as of 31 Dec. 

2002 is therefore as follows: 

Shareholder Amount in HRK Amount in EURO % 

VCP Finance B.V., Netherlands 23,168,000 3,113,019 5,59 

Hypo Alpe-Adria-Bank AG, Austria 391,434,000 52,595,894 94,41 

Total 414,602,000 55,708,913 100,00 

1999 

2000 

2001 

2002


TREASURY AND REFINANCING 

The 2002 FX market was dynamic. The value of 

EUR 1 fluctuated between HRK 7.31 and HRK 7.58. 

The bank successfully adjusted its position in 

accordance with movements of the market and 

reconfirmed itself as an active and respected player 

on the domestic and foreign money markets. 

From this year the banks’ quotations are being 

included in the calculation of ZIBOR. With regard 

to short term securities, the bank was an active trader 

and is ready for further developments in the market. 

The services provided by our Customer Desk, i.e. 

the flexible determination of exchange rates, illustrate 

one more way of meeting the needs and demands 

of our clients. The number of clients using this 

service significantly increased. The volume of 

transactions at the end of 2002 were up roughly 

150% over the figures for the end of 2001. The 

volume of forward agreements also increased, which 

shows the increased awareness of our clients 

concerning risk and risk management. 

The refinancing funds collected from Hypo Alpe- 

Adria-Bank AG, Klagenfurt, represent a significant 

source for potential bank finance. Through the whole 

year, these funds were maintained at 40% of our 

overall sources. 

RISK MANAGEMENT 

Hypo Alpe-Adria-Bank d.d. identifies, measures, 

monitors and manages all the risks associated with 

the banking business and coordinates these 

activities with risk control and risk management units 

in accordance with the new Hypo Alpe-Adria-Bank 

Group standards. Hypo Alpe-Adria-Bank d.d. 

classifies the risk monitoring and controlling 

processes associated with risk controlling and 

management into the following categories: credit 

risk, market risk and operating risk. 

2002 marked the beginning of the development of 

a new and more sophisticated information system 

for risk management. Continued development of 

the information system and risk management tools 

will also be a significant feature of 2003. 

Special attention is paid to the monitoring and 

managing of bad and doubtful debt. As soon as the 

early warning signs appear, specialised experts take 

the necessary steps. Several instruments have been 

designed and implemented in order to support the 

control system. These include basic models for rating 

corporate clients, which will additionally improve 

the quality of credit risk control and monitoring. 

Furthermore, the development of tools for measuring 

and managing both the market and the operational 

risks has been ongoing. 

All of the aforementioned represent a good basis for 

the continued development of the risk management 

system, so that the Bank will be ready to accept and 

promptly implement the Basel II standards. 



04 

FRANCE PREŠEREN 

God’s blessing on 

all nations, 

Who long and work 

for that bright day, 

When over earth’s 

habitations 

No war, no strike 

shall hold its way; 

Who long to see 

That all men free 

No more shall foes, 

but neighbours be. 

France Prešeren was born in Vrba in 1800 and died in Kranj, Slovenia in 1849. 

He was the founder of modern Slovenian poetry. 



SLOVENIA


PRIVATE BANKING 

– increase in private savings 

– expansion of the branch network 

– 81% increase in personal loans 

– housing loans combined with 

investments into HI-funds 


In 2001, the Private Banking business unit saw an 

increase in savings. As at 31 December 2002, total 

savings amounted to HRK=1,922 million, which 

represents a 44.7% increase compared with that the 

previous year. 

The opening of new branches, which resulted in the 

bank’s expansion on the Croatian market, contributed 

to the increase in personal savings. With the opening 

of five new branches in 2002, the Bank comprised 

a total of 17 branches. 

By constantly endeavouring to respond to the needs 

of the market and above all to the wishes of our 

clients, the Bank has introduced a number of new 

products and services. Two new saving products 

were developed: a term savings product “Hyper 

štednja - da bi mali postali veliki” (“for the litttle ones 

who want to get bigger”) and a product for children 

up to 12 years of age called “Hypo limač štednja” 

(“kids savings”). 

The loan segment of Private Banking obtained 

excellent results in 2002. The total volume of personal 

loans as at 31 December 2002 amounted to HRK 

1,872 million (EUR=252 million), which represents 

25% of the total loan portfolio and an 81% increase 

(by HRK=839 million, i.e. EUR=113 million) in 

comparison with the previous year. 

Last year, we expanded our product range by 

introducing new types of loans (housing loans with 

a fixed interest rate, housing loans combined with 

investments into HI-funds, bridging loans in 

cooperation with Wüstenrot Housing Savings Bank) 

and by modifying our existing loans, in accordance 

with the needs of the clients. 

The housing loan combined with investments into 

HI-funds is a brand new product on the Croatian 

financial market. Hypo Alpe-Adria-Bank d.d. is the 

first financial institution to offer this kind of long-term 

housing loan to Croatian citizens. 

INVESTMENT BANKING 

– obligatory pension funds 

started their own investments 

– a record turnover on the Croatian Stock exchanges 

– a year of transforming privatisation funds 

into normal closed end funds 

– new Hypo Investment funds 

As was expected, the pension fund reform brought 

totally new stimuli to the Croatian financial markets. 

Pension funds did not influence the stock market as 

heavily as they influenced the fixed income market, 

where demand was extremely high. 

Nevertheless, the domestic stock index CROBEX 

followed its last year’s increase of more than 16 % 

with a rise of 12.2% (from 1,044.40 to 1,172.60) in 

2002. 

The long term Croatian state bonds reacted by 

decreasing their yields from ca. 6.7% at the beginning 

of the year down to 5.1% (6 year maturity).These 

figures are based on a consistently improving rating 

of Croatia and the low interest rate period. 

The other main issues during 2002 were clearly the 

continuation of the privatisation processes and the 

introduction of new legislation dealing with all types 

of securities businesses (e.g. securities act, acquistion 

act, law on investment fund act).


Because of successful development of the Investment 

Banking business unit during 2002, Hypo Alpe- 

-Adria-Bank d.d. was once again one of the main 

players in all activities related to securities and was 

able to improve its reputation in the market. 

Capital markets / Custody 

2002 the Capital Markets department introduced a 

dealing desk for custody clients. This dealing desk 

is, through our sub-network, able to service our clients 

with securities from all over the world. Even though 

it is still illegal for Croatian citizens to buy foreign 

securities, we were able to gain experience with these 

institutions which are allowed to invest abroad. 

Hypo Alpe-Adria-Bank will be thoroughly prepared 

to service all other clients with this service, as soon 

as Croatian legislation allows it. 

In terms of our own trading book, which is dominated 

by fixed income securities (Croatian state debt), we 

were able to add to the bank's result a positive re- 

-evaluation result of HRK 6.7 million and interest 

income of HRK 10.5 million. 

Financial result Capital Markets / Custody 

With the Bank’s results in the fee-based business, we 

have reaffirmed our leadership position from the 

previous year in acquistions in public auctions. This 

year we were involved in 16 acquisition deals. 

Strong growth in the fee-based business is related 

to dealing and especially the custody service. 

Our approach to the market and the reputation of 

the entire Hypo Alpe-Adria-Bank Group with its Aa2 

Moody's rating, as well as the complete level of 

services offered, meant that we attracted more and 

more institutional custody clients this year and that 

we were able to triple the volume of securities held 

in custody accounts in comparison with that in 2001. 

The plan for the next year is to work on the further 

acquisition of potential custody clients and to 

develop the internal systems, which should both 

ease and secure the settlement procedures from 

the dealing desk to the custody accounts. Plus, we 

are planning to start the issuing business in both 

in HRK 000 

Custody 1,005 

Dealing / Take-overs 2,208 

Revalorization 6,688 

Income 9,901 

Costs 2,511 

NET contribution 7,390 




directions, which means issuing of the Bank's own 

bonds as well as doing bond issues for cities, 

communities and corporations. 

HYPO ALPE-ADRIA-SECURITIES LTD. – 

BROKERAGE 

Our brokerage house, which trades exclusively on 

the domestic market, handled 7,700 transactions in 

2002, with a total trading volume of HRK=471 million 

(EUR=63,2 million). In 2002, we were particularly 

focussed on high volume stock transactions in the 

privatisation process, in which segment we enjoyed 

excellent cooperation with the Hypo Alpe-Adria-Bank 

Group. 

We obtained 3 major tranches of shares in very 

valuable Croatian companies and sold them on to 

final buyers that were found by our group. The crossselling 

effect was completed via financing within the 

Bank and public acquisition settlement through our 

Capital Markets department. These deals heavily 

influenced our trading income, which eventually 

reached HRK=4,2 million. 2002 net profit before 

taxation amounted HRK=1,749 m. 

In the coming year, we will concentrate on increasing 

our portfolio management clients, begin the 

distribution of Hypo Alpe-Adria-Invest d.d. investment 

funds and research the possibilities of expanding 

the services offered within our own banking network. 

HYPO ALPE-ADRIA-INVEST PLC. – 

FUND MANAGEMENT 

Hypo Alpe-Adria-Invest’s business year was 

dominated by the launch of three open end 

investment funds in February 2002 and the 

transformation of our privatisation fund «SPIF» into 

a regular closed end investment fund («SZIF»). 

In 2003 we will complete the range of funds under 

our management with a money market fund to finally 

be able to offer all the necessary types of funds - 

SZIF as a domestic fund, HI-funds which invest 

internationally, and the money market fund for the 

short term liquidity of our clients. 2002 net profit 

before taxation amounted to HRK=26,515m. 

CORPORATE BANKING 

For fiscal year 2002, the Bank planned a 40% 

increase in its commercial loan portfolio with the 

emphasis on the tourism segment and all the 

processing industries related to it. 

Despite the strong growth of competition in the 

Croatian market, we succeeded in increasing the 

commercial loan portfolio by 57% to HRK=6,021 

million (EUR=809 million). 

This increase resulted mainly from the strengthening 

of business relationships with our existing clients. 

Our new branches in Varaždin, Čakovec, Velika 

Gorica and Umag have additionally enlarged our 

distribution network and increased the number of 

services we provide for our existing and new clients. 

In comparison to 2001 figures, the number of 

depositors increased from 2,500 to 7,000. As far as 

exposures to single industries are concerned, the 

largest share in financing was in the wholesale and 

retail segments, followed by the processing industry 

and tourism. Exposure to a single industry did not 

exceed 25% 

The development of the bank’s business confirms 

that the strategy of concentrating in the Alpine- 

-Adriatic Region has been very successful. As our 

clients are expanding their business activities more 

and more into places such as Austria, Italy, Slovenia 

and especially the new markets of Bosnia- 

Hercegovina and Serbia and Montenegro, Hypo 

Alpe-Adria-Bank with its markets, products and 

services is the perfect partner for commercial clients. 

With an emphasis on cross-border business, on 

financing of tourism projects and on investments, 

an increase of 16% in our commercial loan portfolio 

is planned for the fiscal year 2003. 

The International trading of goods and services is a 

significant factor when dealing with the economic 

growth and development of Croatia. Bringing 

Croatian legislation in line with that of the European 

Union, in light of Croatia's attempts to get ready to


join the EU, and especially the new foreign exchange 

law and the liberalisation of foreign exchange 

transactions, will bring about additional stimuli to 

foreign trade. One of the main tasks of the 

International Services unit, in this context, is the 

continual monitoring of all changes in foreign 

exchange law, in order to apply the regulations easier. 

The number of transactions and the total volume of 

business of the International Services unit continued 

to grow in 2002. The profit coming from these 

transactions increased by 56% over that in 2001. 

These results represent a contribution to the Bank's 

policy of increasing non-interest income. The 

importance of this business segment will rise as a 

result of the limiting of loan expansion in Croatia by 

the Croatian National Bank. The quality and 

promptness of our services attract more and more 

clients, who recognize us as a stable, flexible and 

reliable partner and for these very reasons we are 

extremely satisfied. Our constant challenge is to 

support them in all the activities connected with 

international payments and documentary business. 

The importance of the International Services unit is 

also reflected in the complete utilisation of the synergy 

effects of the Group, i.e. benefits of running a business 

within an international financial group. By operating 

in the dynamic and demanding Alpine- 

Adriatic region (the target market of the Hypo -Adria- 

Bank Group), Hypo members bring business partners 

together and explore new ways of cooperation, thus 

supporting economic development and the overall 

welfare of the region. We offer our clients prompt and 

professional services, an individual approach and an 

appreciation of each client's specific qualities, with 

significantly lower fees and a shorter realisation period. 

In 2002, we placed an emphasis on the development 

of new products, primarily forfeiting, and this gave 

exporters the opportunity to achieve higher liquidity 

and develop more dynamic activities. In 2003, we will 

continue with this policy. We will also keep developing 

corresponding businesses in order to create a wide 

network of correspondents and provide our clients 

with high quality services. 

2003 will also see further modification of our business 

activities, with the aim of offering additional benefits 

to our clients, and we also intend to simplify our 

payment processes. HYPOnet ensures the 

impeccable execution of external payments and in 

2003 we will offer a unified payment service system 

in FX and HRK, as well as the possibility to 

electronically execute payment transactions both in 

Croatia and abroad. 

INFORMATION TECHNOLOGY 

By constantly improving our information technology 

facilities, we hope to increase system security and 

stability, and along with the implementation of new 

software and hardware, we aim to provide strong 

support for our business processes. 

The continuous development of the electronic 

workflow and groupware solutions in the Lotus Notes 

platform have been our top priority in order to reach 

the necessary efficiency levels and in turn reduce 

costs even further. 

In 2002, the project to update the network equipment 

in accordance with the standards of our partner was 

successfully completed. We are now able to fulfil the 

requirements related to our plans for a new banking 

application. 

The expansion of the modern filing system to most 

of the Bank's organisational units has continued 

within the Document Management project. 

The dynamic development of the Bank demands the 

efficient inclusion of new branches and sub-branches 

and their local area networks (LAN) into the Bank's 

common information «blood stream» (WAN). 

The ATM network has been expanded to 54 machines. 



05 

MAK DIZDAR / NOTES ABOUT A RIVER 

This morning I awoke 

a spring in me 

By midday it 

began to flow 

began to grow, 

to swell, to roar, 

In the evening it was 

a raging river 

In the late night hours 

my restless steps visited 

miracle-like 

the unreal body 

of this dark, secret water. 

Mak (Mehmedalija) Dizdar, born 1917 in Stolac, died 1971 in Sarajevo. 

Editor, journalist und writer, he is considered to be the most important poet in Bosnia. 



BOSNIA AND HERZEGOVINA



INNOVATIONS 

In addition to the existing range of VISA cards, the 

VISA Business Card was introduced. 

The project for the Domestic Payment System (DPS) 

is entering its final phase. The DPS model chosen 

by the Bank enables clients to execute their payment 

transactions quickly and efficiently at all of the Bank's 

branches. As a result of these additional investments 

and the technological development, the Bank will 

provide a service that will enable clients to execute 

FX and HRK transactions via the Internet (HYPOnet). 

Our attractive web site received two prestigious 

awards in a short period of time. It was chosen as 

one of 10 best web sites in the financial institutions 

category and was chosen as one of Top 50 Croatian 

web sites. 

In the summer of 2002, changes to the Bank’s 

organisational structure were successfuly made. The 

new structure allows for a better and more efficient 

approach to clients in the retail business and 

improves synergies. 

INVESTMENTS / NEW HEADQUARTERS 

The number of bank employees keeps increasing 

rapidly and we are planning further growth. Therefore, 

there is a need for a larger premises, where all of the 

Bank’s departments would be located. In that way, 

work could be completed more quickly and efficiently. 

The positive experience with the Centre in Klagenfurt 

was our inspiration for a similar centre in Zagreb. 

Our Centre is a multi-functional building with a total 

area of 83,000 m 2. There are three underground 

levels with parking lots and technical rooms spread 

out across the whole building site. Four buildings 

will ‘grow out’ of them. The biggest one will be 

Building 1, for the needs of the bank and the other 

members of the Hypo Group. In Building 2 there will 

be a hotel with 45 rooms, a restaurant, seminar 

rooms, a multi-functional congress centre for 1,000 

people and a fitness centre. Building 3 will consist 

of an office and business space and for Building 4 

we plan a business space, a kindergarten and some 

appartements on the ground floor. All the space will 

be available for rent.


Famous American architect Thom Mayne and his 

studio Morphosis were aware of our needs and 

wishes. In a particular way, but with respect to the 

specific features of Zagreb, they have created a 

project that will surely become a new and 

recognisable part of the city. 

It was a long process from the planning and creation 

of the designs and various other preparations to the 

beginning of construction on the building site. With 

such a complex building, it is necessary to engage 

numerous collaborators. 

After completion of the reinforced diaphragm wall 

with anchors into which approximately 4,300 m 3 of 

concrete and 365 t of reinforcement were built in 

and 100,000 m 3 of material was excavated, we 

started with the work of drainage and the levelling 

of the layers of concrete for the foundation plate. The 

selected contractors are Tehnika and Industrogradnja 

as it was necessary that only the greatest and most 

highly qualified contractors participate in such a 

huge and demanding project. Our wish was to use 

Croatian construction companies and engage local 

workers and local materials as much as possible. 

HUMAN RESOURCES MANAGEMENT 

Last year’s results were accomplished via teamwork 

in an easygoing environment. All employes contributed 

with their efforts, knowledge and enthusiasm to the 

Bank’s development and growth. Such results would 

not have been possible without a team of educated, 

motivated, ambitious, and teamwork friendly 

employees. 

203 

2000 

349 

2001 

525 

2002 

NUMBER OF EMPLOYEES 

706 

Plan 2003 



43% 

31% 


The average number of employees in Hypo Alpe- 

-Adria-Bank d.d. in 2002 amounted to 417. The 

average age is 33. 

69% 

57% 

The Bank’s policy is to monitor our employees in 

order to develop internal and external training in line 

with both business requirements and the employee 

profile. 

In 2002 Hypo Alpe-Adria-Bank enabled its employees 

to improve themselves on a personal level by allowing 

them to attend foreign language courses (English, 

German and Croatian), by training them in sales skills 

(specialised, tailor made training for retail and 

corporate officers), with Induction Training 

(presenting Hypo standards, policies & procedures 

to the new employees), Negotiation and Presentation 

skills, Client orientation and external training specific 

to a given branch, as well as some Human Resources 

Management skills training, specific Banking training 

and Management assessment with individual 

managerial training. 

EMPLOYEES 

69% female 

31% male 

EMPLOYEES 

57% University education 

43% College education


OUTLOOK 

2003 will be primarily a year of significant growth 

reduction on the assets side as compared to previous 

years. Business activities will be focused on expanding 

and improving the existing range of products and 

services, as well as the launch of new products, related 

services and new technologies. 

Despite the planned reduction of assets growth, 

Hypo Alpe-Adria-Bank d.d. will continue to extend 

its branch network (Zagreb Trakošćanska, Zagreb 

Trpinjska, Zagreb Dubrava, Sisak, Šibenik, Karlovac, 

etc.). This plan reflects the continuing strategy of 

the Management Board and its orientation towards 

Private Banking. 

New products and services have been planned 

primarily in the areas of domestic payment system 

and Internet banking (both for private and corporate 

clients), as well as card management. The new 

internal organisation of the Bank should additionally 

improve and speed up the operational business and 

consequently the quality of products and services. 

By implementing new methods and models of risk 

management, risk and financial controlling, the Bank 

will also create a better platform for credit risk 

monitoring. By improvement of the existing banking 

software application and the development of a new 

one, the Bank will significantly decrease operational 

business risks. 

Corporate Banking continues to be most important 

segment for the success of the Bank. For 2003, we 

want to bring together all our investment banking 

services, including the issuing of our bonds and the 

underwriting of planned issues by the Croatian 

government. 

In the year 2003 we will proceed with the construction 

of the Bank’s new headquarters in Zagreb. 




HYPO-LEASING KROATIEN d.o.o. 

The Market Situation 

In 2002 Hypo-Leasing Kroatien d.o.o. continued the 

success story that began several years ago, 

reaffirming and even strengthening its leading 

position in the Croatian market. At the end of the year 

Hypo-Leasing covered 40% of the Croatian leasing 

market. We are also proud to be one of the founding 

members of the newly founded Association of 

Croatian Leasing Companies. 

The growth of the market share has also given us 

extreme satisfaction because the Croatian leasinglandscape 

consists almost completely of companies 

in foreign ownership. Most of them are owned by 

Austrian and German companies, which means that 

Hypo-Leasing has almost the same competitive 

surroundings as one can find in Austria. 

In 2002, Hypo-Leasing Kroatien confirmed its status 

as a reliable partner for small and medium-sized 

enterprises. We have gained a special reputation in 

the financing of used vehicles. Because of our 

excellent results in the regions of Dalmatia, Slavonia 

and Istria, we have also decisively strengthened our 

market position with regard to providing financing 

for new vehicles. Due to extensive construction work 

on the motorways in Croatia, the financing of 

construction machinery has also played a crucial 

role in the overall results. 

The strategy of Hypo-Leasing Kroatien for 2003 will 

be based primarily on treading carefully along a 

defined path and especially on keeping our market 

share in the financing of used vehicles, as well as 

new cars. We will also intensify our efforts to gain a 

good reputation with our new products in the areas 

of movables and real estate. A significant part of our 

business in the year 2002 was related to the financing 

of vessels, and due to the attractiveness of nautical 

tourism in Croatia, we will continue with the 

development of this activity in the coming year. 

The Business Network 

The activities of Hypo-Leasing Kroatien d.o.o. are 

spread across four regions. In each region, there is 

one central regional branch and a range of local 

branch offices. At the end of 2002, there was a total 

of 13 branches covering the whole of the Croatian 

market. Last year, we opened new branches in 

Varaždin, Čakovec, Slavonski Brod, Vinkovci and 

Vukovar. In the fiscal year 2003, we will open more 

locations in Sisak, Šibenik, Rovinj, Labin, Požega 

and Virovitica in order to get even closer to our clients. 

In 000 

2000 2001 2002 

HRK EUR HRK EUR HRK EUR 

Balance sheet 943,845 124,217 1,536,307 208,453 2,540,247 341,297 

Operating result 23,848 3,139 14,555 1,975 23,194 3,116 

Employees 49 82 97


HYPO ALPE-ADRIA CONSULTANTS d.o.o. 

Hypo Alpe-Adria Consultants d.o.o. was founded in 

September 1997 as a consulting company with a 

shareholder capital of EUR=72,673.00. 

The primary goal of Hypo Alpe-Adria Consultants is 

to provide consulting services to potential investors 

from the Alpine-Adriatic region, thus contributing to 

the wide variety of services offered by the Hypo 

Group in Croatia. 

Consulting Services 

Hypo Alpe-Adria Consultants offer full support to 

foreign investors in the growing Croatian market. 

These services include market research, an 

evaluation of potential partners, legal and tax advisory 

services, support in acquistions, setting up 

subsidiaries in Croatia, real-estate investments, project 

management, etc. 

Investment and Construction Projects 

Hypo Alpe-Adria Consultants operates as an investor 

in its own investment projects. 

The Trešnjevka Project was completed during 2002 

and 90% of the flats available have been sold in the 

market. The construction of the Prekrižje Project 

expansion started at the end of 2002 and should be 

completed by April 2004. 

By the end of the first quarter of 2002, we began 

construction on a new project near our headquarters 

in Koranska/Koturaška. It will become one of the 

most important business buildings in Zagreb and 

will consequently benefit Hypo Alpe-Adria 

Consultants not only because of the financial benefits, 

but also with a major improvement in the Hypo 

Group’s image. It will be the most successful financial 

institution in the real-estate business. The 

Koranska/Koturaška project will also be finished in 

May 2004. 

Moreover, during the last few years Hypo Alpe-Adria 

Consultants have been investing significant sums 

(in the sense of long-term strategic investments) 

through the purchase of high quality property in the 

Zagreb and Istria areas in order to ensure it can grow 

in size and stature in the future. In our experience, 

an approach such as this guarantees long-term and 

stable business expansion within the growing market 

of Croatia. 

1998 17,887 

ASSETS 

in 000 HRK 

43,838 

1999 

2000 93,706 

2001 150,667 

2002 286,670 



06 

MILOŠ CRNJANSKI / BELGRADE 

You rise up alongside the 

morning star, the clear, 

with Avala in the distance, 

like a mountain. 

You flicker even when 

the stars go out 

and melt like the sun, 

does the ice of tears and 

the snows of last year. 

Miloš Crnjanski was born in Csongrad, Hungary in 1893 and died in 

Belgrade, Serbia in 1977. He was a poet, novelist and playwright. 



SERBIA

kroatien_E_zahl_fertig 11.06.2003 14:15 Uhr Seite 46

kroatien_E_zahl_fertig 11.06.2003 14:15 Uhr Seite 47 

FINANCIAL STATEMENTS 

Independant Auditors’ Report 48 

Income Statement 49 

Balance Sheet 50 

Cash Flow Statement 52 

Changes in Shareholder Capital 53 

Notes to the financial statements 54 





INCOME STATEMENT 

2002 2001 

EUR(000) EUR (000) 2002 2001 

Notes 7.442292 7.370030 HRK (000) HRK (000) 

Interest and similar income 3(b),4 88,791 63,227 660,807 465,984 

Interest expense and similar charges 3(b),4 (41,682) (28,735) (310,207) (211,779) 

Net interest income 47,109 34,492 350,600 254,205 

Provisions for identified and 

unidentified loan losses, net of recoveries 3(e),5 (14,698) (10,153) (109,390) (74,829) 

Net interest income after provisions 32,411 24,339 241,210 179,376 

Fee and commission income 6 9,090 4,225 67,654 31,136 

Fee and commission expense 6 (3,804) (379) (28,309) (2,795) 

Gains / Losses arising from 

investment in securities 17 2,793 9 20,785 66 

Net gains arising from dealing 

in foreign currencies 7 5,133 4,127 38,199 30,417 

Other operating income 8 1,717 1,672 12,779 12,322 

General and administrative expenses 9 (23,575) (14,378) (175,450) (105,966) 

Depreciation 3(d),10 (1,584) (1,212) (11,787) (8,930) 

Other operating expenses 11 (231) (124) (1,720) (916) 

Profit before tax 21,950 18,279 163,361 134,710 

Taxation 3(g),12 (4,039) (3,767) (30,059) (27,763) 

Net profit for the year 17,911 14,512 133,302 106,947 

Amounts in EUR are calculated using the mid exchange rate of the Croatian National Bank as at 31 December 

and are disclosed only for the convenience of the reader. Use of average rate during the year would have no 

material influence on the financial statements. 

The accompanying notes on pages 7-27 are an integral part of these financial statements. 




BALANCE SHEET 

Assets 2002 2001 

EUR (000) EUR (000) 2002 2001 

Notes 7,442292 7,370030 HRK (000) HRK (000) 

Cash, nostros and balances with the Central Bank 3(h),13 170,165 103,853 1,266,416 765,400 

Treasury bills and dealing securities 14 79,517 52,682 591,790 388,270 

Placements with and loans to other banks 15 86,363 38,186 642,739 281,430 

Loans and advances to customers 16 1,022,166 637,192 7,607,260 4,696,125 

Investment securities 17 3,881 1,099 28,885 8,100 

Accrued interest receivable 18 18,896 14,553 140,632 107,259 

Other assets 19 2,592 873 19,292 6,431 

Tangible and intangible assets 3(d),20 12,048 10,452 89,663 77,035 

Repossessed assets 5 37 

Total assets 1,395,629 858,895 10,386,677 6,330,087


BALANCE SHEET 

Liabilities, capital and reserves 2002 2001 

EUR (000) EUR (000) 2002 2001 

Notes 7,442292 7,370030 HRK (000) HRK (000) 

Loans and deposits from banks 

and other money market deposits 3(i),21 

a) Loans and demand deposits 

and deposits up to 3 months 35,357 29,458 263,135 217,109 

b) Loans and demand deposits and deposits 

up to 3 months received from the parent company 474 413 3,529 3,043 

c) Loans and term deposits 30,043 12,876 223,589 94,895 

d) Loans and term deposits 

received from the parent company 555,649 250,649 4,135,302 1,847,287 

621,523 293,396 4,625,555 2,162,334 

Amounts owed to other depositors 22 

a) Demand deposits and 

deposits up to 3 months 249,550 144,463 1,857,222 1,064,696 

b) Term deposits 206,704 126,321 1,538,355 930,993 

456,254 270,784 3,395,577 1,995,689 

Accrued interest payable and other liabilities 23 34,475 29,046 256,572 214,069 

Total liabilities 1,112,252 593,226 8,277,704 4,372,092 

Provisions for off-balance sheet items 1,962 1,329 14,602 9,797 

Hybrid Instruments 24 197,528 208,228 1,470,062 1,534,645 

Share capital 25 55,709 38,041 414,602 280,366 

Share premium 25 10 10 75 75 

Retained earnings 25 - 27 - 202 

Profit for the year 25 17,911 14,511 133,302 106,947 

Reserves 25 10,256 3,523 76,330 25,963 

Total Capital and Reserves 83,887 56,112 624,309 413,553 

Total Liabilities, Capital and Reserves 1,395,629 858,895 10,386,677 6,330,087 

Commitments and Contingencies 27 168,953 73,658 1,257,400 542,863 

Amounts in EUR are calculated using the mid exchange rate of the Croatian National Bank as at 31 December 

and are disclosed only for the convenience of the reader. 

The accompanying notes on pages 7-27 are an integral part of these financial statements. 

Approved on and signed by the Management Board on 20 March 2003. 

Heinz Truskaller, B.Sc. Igor Kodžoman, B.Sc Zoran Sikirica, M.Sc. 




STATEMENT OF CASH FLOWS 

2002 2001 

HRK (000) HRK (000) 

Net cash flows from operating activities 

Net profit 133,302 106,947 

Depreciation 11,787 8,930 

145,089 115,877 

Net change in operating assets and liabilities 

Increase in dealing securities (203,520) (163,633) 

Increase (decrease) in placements with and loans to banks (361,309) 251,591 

Increase in loans and advances to customers (2,911,135) (1,902,797) 

Increase in accrued interest (33,373) (44,449) 

Increase (decrease) in other assets (12,861) 1,230 

Increase (decrease) in loans and deposits from Banks 2,456,741 (401,082) 

Increase in other deposits 1,411,854 1,108,207 

Increase in accrued interest payable and other liabilities 37,016 116,121 

Increase (decrease) in provisions for off balance sheet items 4,806 6,374 

Net cash flow from operating activities 388,219 (1,028,438) 

Cash flow from investment activities 

Increase in investments (20,785) (7,167) 

Decrease in repossessed assets 37 10,902 

Increase in tangible and intangible fixed assets (24,465) (24,057) 

Net book value of fix assets sold 50 - 

Cash flows from investment activities (45,163) (20,322) 

Cash flow from financing activites 

Decrease (increase) in hybrid instruments (64,583) 1,534,645 

Dividend paid (56,782) (33,766) 

Proceeds from issuance of share capital 134,236 33,764 

Net cash flow from financing activities 12,871 1,534,643 

Increase in cash and cash equivalents 501,016 601,760 

Cash and cash equivalents at the beginning of the period 765,400 163,640 

Cash and cash equivalents at the end of the period 1,266,416 765,400


CHANGES IN SHAREHOLDERS’ EQUITY 

U HRK (000) 

Share Share Retained Profit for 

capital premium earnings Reserves the Year Total 

As at 31 December 2000 246,602 75 203 9,929 49,800 306,609 

Distribution of profit for 2000 

To reserves 16,034 (16,034) - 

Dividend to shareholders (33,766) (33,766) 

Increase of share capital 33,764 33,764 

Net profit for 2001 106,946 106,946 

As at 31 December 2001 280,366 75 203 25,963 106,946 413,553 

Distribution of profit for 2001 

To reserves 5,347 (5,347) - 

To retained earnings 44,817 (44,817) - 

To other reserves (45,020) 45,020 - 

Dividend to shareholders (56,782) (56,782) 

Increase of share capital 134,236 134,236 

Net profit for 2002 133,302 133,302 

As at 31 December 2002 414,602 75 - 76,330 133,302 624,309 




NOTES TO THE FINANCIAL STATEMENTS 

1. OPERATING ACTIVITIES 

Hypo Alpe-Adria-Bank d.d. Zagreb, Koturaška 47, 

("the Bank") is a public limited company registered 

in Croatia. The bank was granted a full banking 

license by the Croatian National Bank (HNB) in 1996 

and started banking activities in September 1997. 

This license included, but was not limited to, the 

following activities: taking deposits in local and 

foreign currencies, making loans in local and foreign 

currencies, buying and selling of local and foreign 

currencies, opening nostro accounts abroad, and 

transactions with securities, precious metals and 

bills of exchange, in the country and abroad. The 

bank is a majority owned subsidiary of Hypo Alpe- 

-Adria-Bank AG Klagenfurt. 

2. BASIS OF PREPARATION 

OF THE FINANCIAL STATEMENTS 

2.1. General 

a) Economic background 

During 2002 the operations were conducted 

through the Bank’s head office located in Zagreb, 

branch offices in Samobor, Varaždin, Čakovec, 

Velika Gorica, Rijeka, Opatija, Pula, Poreč, Umag, 

Zadar, Split, Dubrovnik, Metković and Makarska. 

The financial statements are stated in Croatian 

official monetary unit kuna (HRK). The exchange 

rates applied at the last day of the business years 

are as follows: 

31 December 2001 1 EUR= HRK 7.370030 

31 December 2002 1 EUR= HRK 7.442292 

b) Persons responsible for the bank’s operations 

Management: 

Heinz Truskaller, B.Sc. 

President of the Management Board 

Igor Kodžoman, B.Sc. 

Vice-President of the Management Board 

Zoran Sikirica, M.Sc. 

Member of the Management Board 

As at 31 December 2002 Hypo Alpe-Adria-Bank 

d.d. had 525 employees (31 December 2001: 349 

employees). 

2.2. Comparative figures for the 

year ended 31 Decemeber 2001 

Comparative figure in the Income statement for the 

year ended 31 December 2001, relating to Interest 

and similar income, was increased by the amount 

of HRK 38,252,000 and consequently fee and 

commission income was decreased by the same 

amount because it related to a single fee charged 

to the customer at the moment (and in connection 

with) of the loan approval. 

3. SUMMARY OF SIGNIFICANT 

ACCOUNTING POLICIES 

3(a) General 

These financial statements have been prepared in 

all material respects in accordance with the 

International Accounting Standards (IAS) and 

applicable requirements of the Croatian Law. Certain 

accounts which the bank is required to maintain 

under Croatian accounting regulations, have also 

been prepared in accordance with the IAS. Where 

these regulations differ from IAS, adjustments have 

been made in order to bring them into line with the 

requirements of IAS. The 2001 financial statements 

presented herein have been audited and are 

disclosed for comparative purposes. 

3(b) Income and expense recognition 

I Interest income, interest expense, commission 

fees, commission expenses and other financial 

operating income and expenses are accounted 

for on accrual basis. Loan fees and direct 

origination costs are recognized as income upon 

draw down of the loan. The bank does not 

distinguish between the net fees which are integral 

part of the effective loan yield and those net fees 

which are earned as services provided or upon 

completion of an event. 

II Following the adoption of IAS 39, the bank retained 

the policy to recognise interest income on partially 

recoverable placements upon collection for the 

accounting period of the financial statements. The 

Bank’s management believes that results of 

application of such policy do not materially differ 

from the provisions of IAS 39.


3(c) Foreign currency transactions 

I Transactions denominated in foreign currencies 

have been translated into HRK at rates set by the 

Croatian National Bank (CNB) or agreed between 

counter-parties at the date of transactions. Assets 

and liabilities denominated in foreign currencies 

are translated at the balance sheet date using the 

CNB mid rates of exchange on that date. Significant 

exchange rates at the balance sheet date are 

mentioned above (in note 2.1.a). 

3(e) Provisions for identified 

and unidentified losses 

I Loans and advances to customers are stated net 

of unpaid overdue interest, less any applicable 

loan loss provision. 

II The bank uses local Croatian standards and 

regulations to determine loan loss provisions for 

local reporting requirements. The bank believes 

the provision determined in this manner is in 

accordance with International Accounting 

Standards. 

III Local Croatian standards impose to determine 

loan loss provisions by monitoring specifically 

each of the Bank’s clients taking into consideration 

client’s credit ability, orderliness of repayment, 

loan collateral value and other information. The 

Bank applies a careful and conservative approach 

to estimation of the value of loan collaterals taking 

into consideration the type of collateral, status, 

marketability and degree in which the bank 

exercises control over it. 

IV In accordance with IAS-39 and internal allocation 

procedures the placements were divided in three 

groups depending on the risk level: 

II Net foreign exchange gains or losses arising from 

translation are credited or charged to current 

operations. 

3(d) Tangible and intangible fixed assets 

I Tangible and intangible fixed assets are carried at 

cost less accumulated depreciation. Depreciation 

on tangible and intangible fixed assets is calculated 

on a straight line basis designed to write off assets 

over their estimated useful lives. 

II The annual rates of depreciation are as follows: 

2002 2001 

Buildings 4% 4% 

Equipment and computers 5-20% 5-20% 

Other tangible assets 6.7-33.3% 6.7-33.3% 

Software and other intangible assets 25% 25% 

a) fully recoverable placements, which are estimated 

that will be collected with a high level of reliability, 

based on financial performance monitoring of 

the client and available loan collateral. Within this 

group there are classified placements to clients 

with solvency A and B. 

b) partially recoverable deemed placements, which, 

are estimated that will not be fully collected, based 

on financial performance monitoring of the client 

and available loan collaterals. These placements 

were submited to value adjustments, and the 

provision is established as difference between 

the carrying amount and the recoverable amount. 

Within this group there are classified placements 

to clients with solvency C and D. 

c) placements whose recoverable amounts are 

estimated to nil, and furthermore for which no 

collection is expected. These placements do not 

bear any income and the estimated loss is 100%. 

Within this group there are classified placements 

to clients with solvency E. 

V All the value adjustments for the placements are 

charged to the profit and loss account. If the 

placements which previously were submitted to 




the value adjustment are collected, or collection 

risk degree decreased, preliminary established 

provisions for identified losses were decreased 

by the appropriate amount and credited to income. 

VI Accrued interest is included as income in the 

profit and loss account for placements allocated 

in the risk groups A and B, while accrued interest 

for placements allocated in the risk groups C, D 

and E is excluded from the profit and loss 

statement (suspended income) and booked as 

off-balance sheet items. These receivables are 

recognized as income upon the collection. 

VII Beside the provisions for identified losses, the 

Bank charged the profit and loss account by 

general provision for unidentified losses. The 

provision is calculated as at least 1 % of all 

placements and off balance sheet items allocated 

to the risk group A, and 2% of all placements and 

off balance sheet items allocated to the risk group 

B, except for the receivables from the Croatian 

National Bank, the Republic of Croatia and 

government agencies. 

VIII Provisions for identified and unidentified losses 

relating to the balance sheet items are reported 

as deduction line of assets in the accompanying 

balance sheet, while the provisions relating to 

off balance sheet items are reported on the 

liability side of the accompanying balance sheet. 

3(f) Write off of uncollectable loans 

The Croatian legislation only allows the write off of 

uncollectable loans after they have been in arrears 

for a certain predetermined period of time or are 

subject to litigation. 

3(g) Taxation 

I Corporate income tax is computed on the basis 

of taxable profit, calculated by increasing the 

statutory financial result for certain expenditure 

items (as 70% of entertainment, 30% of car 

allowances, etc.) and decreasing the statutory 

financial result for certain income items (as value 

adjustments of investment in subsidiares) as 

required by Croatian law. 

II The company’s tax returns are subject to 

examination by the tax authorities. Because the 

application of tax laws and regulations to many 

types of transactions is susceptible to varying 

interpretations, the amount reported in the financial 

statements could be changed at a later date upon 

final determination by the tax authorities. 

III Under IAS No. 12, “Accounting for Taxes on 

Income”, deferred income taxes are accounted for 

under the liability method and reflect the tax effect 

of all significant temporary differences between the 

tax basis of assets and liabilities and their reported 

amounts in the financial statements. 

IV In 2002 the corporate tax rate was 20% (2001: 

20%). 

3(h) Cash and cash equivalents 

Cash and cash equivalents for cash flow purposes 

include cash and nostro accounts which represent 

unrestricted demand deposits at other banks, 

treasury bills with maturity under 3 months as well 

as account balances with the Central Bank. 

3(i) Deposits 

Deposits are presented in the balance sheet in the 

same amount as the amount in which they were 

transferred to the bank’s giro account. 

3(j) Fair values 

I In accordance with the IAS, financial statements 

have been prepared on a historical cost basis, 

including adjustments and provisions to reduce 

assets to estimated recoverable amounts. The 

bank also discloses information about the fair value 

of its financial instruments. Fair value for this 

purpose is defined as the amount for which an 

asset could be exchanged, or a liability settled, 

between knowledgeable, willing parties in an 

“arm’s length transaction”.


II It is a policy of the Bank to disclose fair value 

information on those assets or liabilities for which 

the published market information is available, and 

where the fair value is materially different from 

recorded amounts. In the opinion of the Bank’s 

management, the reported amounts are the most 

valid and useful values which can be reported 

under these circumstances, and their approximate 

fair value. 

III Assets available for sale are valued at market 

values. 

3(k) Financial instruments 

with off-balance sheet risk 

I Financial instruments include commitments to 

extend credit, financial guarantees, commercial 

letters of credit and forward foreign exchange 

contracts. These instruments involve, to varying 

degrees, elements of credit and market risks in 

excess of the amounts recognized in the balance 

sheet. 

II Credit risk of off-balance sheet financial 

instruments is defined as the possibility of 

sustaining a loss because any other party to a 

financial instrument might fail to perform in 

accordance with the terms of the contract. The 

bank uses the same credit policies for 

commitments and conditional obligations as it 

does for on-balance sheet financial instruments 

through established credit approvals, risk control 

limits and monitoring procedures. 

III Market risk represents the possibility that the value 

of financial instruments will change, either 

positively or negatively, with changes in market 

prices, such as interest in foreign currencies. 

IV The bank requires collateral to support off-balance 

sheet financial instruments when it is deemed 

necessary. Collateral held varies, but may include 

deposits held in financial institutions, government 

securities, other marketable securities, inventory 

or property plant and equipment. 

V Commitments are contractual agreements to 

extend credit, which generally have fixed expiration 

dates or other termination requirements and may 

require payment of a fee. Substantially all of the 

bank’s commitments to extend credit are 

contingent upon the customers maintaining 

specific credit standards at the time of loan 

granting. Since many of the commitments are 

expected to expire without being drawn upon, 

the total commitment amounts do not necessarily 

represent future cash requirements. 

VI Financial guarantees are conditional 

commitments issued by the bank to guarantee 

the performance of a customer to a third party. 

The credit risk involved in issuing guarantees is 

basically the same as the one involved in 

extending facilities to other customers. 

VII A commercial letter of credit represents an 

extension of credit by the bank to its customer 

where the customer is usually the buyer /importer 

of goods. Credit risk is limited because the 

merchandise shipped serves as collateral for the 

transaction. 




4. INTEREST AND SIMILAR INCOME AND EXPENSES 

a) Interest and similar income 

31/12/2002 31/12/2001 

HRK (000) HRK (000) 

Interest charged to banks 29,173 19,345 

Interest charged to companies 408,703 282,224 

Interest charged to retail clients 165,207 106,532 

Interest charged to non-residents 20,523 16,998 

Interest charged to public sector 37,201 40,885 

Total 660,807 465,984 

b) Interest expense and similar charges 31/12/2002 31/12/2001 

HRK (000) HRK (000) 

Interest charged by banks 11,773 3,786 

Interest charged by companies 14,204 12,250 

Interest charged by retail clients 55,188 32,636 

Interest charged by non-residents 220,813 161,045 

Interest charged by public sector 8,180 2,062 

Interest expense from previous years 49 - 

Total 310,207 211,779


5. PROVISIONS FOR IDENTIFIED AND UNIDENTIFIED LOAN LOSSES, NET OF RECOVERIES 

Balance sheet items 

31/12/2002 31/12/2002 

HRK (000) HRK (000) 

Specific provision General provision 

Provisions at the beginning of the period (137,969) (51,441) 

Movement in provisions for the period: 

Direct write off 33,488 

Foreign exchange differences (37) 

Release of provisions during the period 86,906 

Provisions charged during the period (195,192) (35,719) 

Provisions at the end of the period (212,804) (87,160) 

Off-Balance sheet items 



Release of provisions during the period 4,785 1,203 



Amounts collected 39,420 

Net provisions charged 

to the profit & loss account (66,365) 43,025 

Balance sheet items 

2001 2001 

Specific provision General provision 



Direct write off 29,122 

Foreign exchange differences (478) 




Off-Balance sheet items 

Provisions at the beginning of the period (617) (2,805) 





Total provision (at the beginning of the period) (118,006) (35,015) 

Total provision (at the end of the period) (142,383) (56,824) 

Net provisions charged 

to the profit & loss account 53,021 21,809 

Provisions were established in accordance with the Bank is provisioning policy explained in note 3(e). 




6. FEE AND COMMISSION INCOME AND EXPENSES 

a) Income 

2002 2001 

HRK (000) HRK (000) 

Fees from services to companies 54,764 21,686 

Fees from services to non-residents 2,541 6,376 

Fees from services to retail clients 7,597 1,929 

Fees from public sector 610 246 

Fees from banks 2,142 899 

Total 67,654 31,136 

a) Expenses 

2002 2001 

HRK (000) HRK (000) 

Commissions for services provided by banks 506 228 

Commissions for FINA (clearing house) 26,233 1,408 

Commissions for services of other enterprises 310 190 

Commissions for services of non-residents 1,260 969 

Total 28,309 2,795 

7. NET GAINS/LOSSES ARISING FROM DEALING IN FOREIGN CURRENCIES 

2002 2001 

HRK (000) HRK (000) 

Dealing profits 35,656 26,455 

Net “foreign currency clause” adjustments 36,393 1,542 

Translation profits/losses (33,850) 2,420 

Total 38,199 30,417 

Common Croatian banking practice involves the pegging of kuna loans to a stable foreign currency, usually 

the EUR or USD. Any gain or loss as a result of the above noted pegging is shown as profit or loss, and is 

included in the net “foreign currency clause” adjustments caption.


8. OTHER OPERATING INCOME 

2002 2001 

HRK (000) HRK (000) 

Rental income 108 42 

Discount of trading securities – realised income 6,304 2,070 

Unrealised gains from trading securities 1,684 4,531 

Consultancy income 1,555 1,749 

Other income 3,128 3,930 

Total 12,779 12,322 

9. GENERAL AND ADMINISTRATIVE EXPENSES 

2002 2001 

HRK (000) HRK (000) 

Personnel expenses 79,00349,762 

Saving deposits insurance premium 6,207 3,480 

Rental and lease charges 20,82312,227 

Materials, services and other expenses 33,758 20,547 

Marketing, sponsorships 

and entertainment expenses 35,659 19,950 

Total 175,450 105,966 

Personnel expenses item refers to the gross salary of employees, and thus includes tax and all state pension 

expenses and other regulatory contributions.The bank accounted tax and contibutions on salaries in accordance 

with Croatian tax regulations. 

10. DEPRECIATION 

Depreciation is computed in the amount of HRK 11,787 thousand (HRK 8,930 thousand in 2001) based on 

the bank’s accounting policies (Note 3(d)). Depreciation is charged in accordance with the local tax regulations. 




11. OTHER OPERATING EXPENSES 

2002 2001 

HRK (000) HRK (000) 

General forest contribution 650 372 

Other 1,070 544 

Total 1,720 916 

12. TAXATION 

Income tax charge for the year 2002 was calculated in accordance with Croatian tax regulations and included 

in the profit and loss account in the amount of HRK 30,059 thousand. Income tax charge for the year 2001 

was calculated in accordance with Croatian tax regulations and included in the profit and loss account in the 

amount of HRK 27,763 thousand. 

13. CASH, NOSTROS AND BALANCES WITH THE CENTRAL BANK 

2002 2001 

HRK (000) HRK (000) 

Cash in hand and on FINA accounts 53,558 158,169 

Nostros and balances with other banks 23,105 53,716 

Balances with the Central Bank 1,190,336 553,515 

Less : General provision for unidentified losses (583) 

Total 1,266,416 765,400 

Balances with the Central Bank amount to HRK 1,190,336 thousand at 31 December 2002.These balances 

represent the minimum deposit required by the Croatian National Bank. The bank has to calculate obligatory 

reserves in the amount of 19 % of deposits. At least 40% of the obligatory reserves have to be held with the 

Croatian National Bank. The remaining amount can be held on accounts with first class OECD Banks or as 

cash reserve in the forein currency.


14. TREASURY BILLS AND DEALING SECURITIES 

2002 2001 

HRK (000) HRK (000) 

Treasury bills issued by the Croatian National Bank 69,990 69,831 

Treasury bills issued by the Ministry of Finance 38,061 79,530 

Bonds issued by the Government, 

DAB and Ministry of Finance 61,694 95,833 

Bonds issued by corporates 44,527 

HZZO bonds 5,011 10,396 

Bills of exchange – Local authorities 63,660 23,880 

Bills of exchange – corporate 278,127 110,140 

Shares held for sale 15,621 

Other securities 17,924 

Less: General provision for unidentified losses (2,825) (1,340) 

Total 591,790 388,270 

Government bonds are financial instruments with maturity from 2004-2012, DAB-s (Croatian Agency for 

Restructuring of Banks) from 2003-2005 and Ministry of Finance (frozen old citizens savings) 1 year bearing 

interest of 6.5% to 8.5% per annum. They are government guaranteed and currency linked to EURO. HZZO 

bonds are bonds of Croatian National Health Fund. They have maturity of 4 years bearing interest of 8.5% 

per annum, are linked to EURO and are guaranteed by the government. 

15. PLACEMENTS WITH AND LOANS TO OTHER BANKS 

2002 2001 

HRK (000) HRK (000) 

With foreign banks in foreign currencies 529,550 187,252 

With local banks in foreign currencies 61,210 5,296 

Croatian Money Market placements in local currency 57,590 91,616 

Forfaiting 523108 


Total 642,739 281,430 




16. LOANS AND ADVANCES TO CUSTOMERS 

a) Analysis of Loans 

i) By type of customer 

Loans to: 2002 2001 

HRK (000) HRK (000) 

Retail banking 

in Croatian kunas (including foreign currency clause) 1,870,465 1,032,210 

in foreign currencies 1,863870 

1,872,328 1,033,080 

Private companies and sole traders 

in Croatian kunas (including foreign currency clause) 5,138,651 3,063,699 

in foreign currencies 685,369 420,609 

5,824,020 3,484,308 

State owned companies and enterprises 

in Croatian kunas (including foreign currency clause) 175,169 221,576 


197,379 361,150 

7,893,727 4,878,538 

Loan loss provision - specific (210,359) (136,237) 

Loan loss provision - general (76,108) (46,176) 

Total 7,607,260 4,696,125 

Average interest rate earned on loans in the year 2002 was 9.73% (2001: 10.88%). 

ii) By industrial sector (excluding retail banking and state owned companies) 

Loans to: 2002 2002 2002 

HRK (000) HRK (000) HRK (000) 

Exposure Provisions Net exposure 

Tourism (Hotels and Restaurants) 537,988 (11,096) 526,892 

Construction 351,830 (28,278) 323,552 

Trade 2,108,462 (79,350) 2,029,112 

Other industries 2,825,740 (110,974) 2,714,766 

Total 5,824,020 (229,698) 5,594,322


b) Maturity of loans 

2002 2001 

HRK (000) HRK (000) 

Up to 3 months: 

in Croatian kunas 201,737 266,962 

In Croatian kunas, with foreign currency clause 691,211 196,879 


971,606 596,400 

From 3 months to 1 year: 



in foreign currencies 108,937 99 

1,439,383 303,142 

From 1 year to 3 years: 

in Croatian kunas 11,447 105 


in foreign currencies 95,736 

1,059,547 201,240 

Over 3 years: 

in Croatian kunas 

In Croatian kunas, with foreign currency clause 3,997,081 3,349,361 


4,423,191 3,777,756 

Subtotal 7,893,727 4,878,538 

Loan loss provision - specific (210,359) (136,237) 

Loan loss provision - general (76,108) (46,176) 

Total 7,607,260 4,696,125 

Non-performing loans amounted to HRK 500,760 thousand as at 31 December 2002. Specific provisions 

made against these loans amount to HRK 212,804 thousand. In 2001 non-performing loans and specific 

provisions made against them amounted to HRK 258,207 thousand and HRK 137,969 thousand respectively. 

The fair value of loans and advances to customers after considering the likely repayment, collateral, term and 

the specific provisions is not materially different, in the context of the financial statements taken as a whole, 

from the carrying value. 




17. INVESTMENT SECURITIES 

a) In 2001 those subsidiaries are carried at cost, less amounts written off to recognise the decline in the value 

of investment (losses). In 2002 this accounting policy was changed to equity method. The effect of this change 

in accounting policy was increase in income and net profit of the Bank by HRK 20,226 thousand. 

31/12/2002 31/12/2001 

HRK (000) HRK (000) 

› 

Investment in Hypo Vrijednosnice d.o.o. 6,351 4,000 

Investment in Hypo Invest d.d. 22,534 559 

Recognised losses of Hypo Invest d.d. (559) 

Investment in Slavoinvest d.d. 4,100 

Total 28,885 8,100 

b) At 31 December 2002 the Bank had 100% shareholdings in both subsidiaries. Investments in Slavoinvest 

d.d. was assign to Hypo-Invest based on the merger statutory procedure. 

18. ACCRUED INTEREST RECEIVABLE 

31/12/2002 31/12/2001 

HRK (000) HRK (000) 

Interest receivable on loans 69,490 45,713 

Accrued interest on loans 70,924 59,750 

Accrued interest on placements with other banks 1,646 2,879 


Total 140,632 107,259 

19. OTHER ASSETS 

31/12/2002 31/12/2001 

HRK (000) HRK (000) 

Fees and commissions receivable 9,492 1,624 

Less: Provision for identified loss (1,763) (89) 

Prepayments 2,676 3,291 

Inventories of office materials 464 401 

Other assets 8,505 1,204 

Less: General provision for unidentified losses (82) 

Total 19,292 6,431


20. TANGIBLE AND INTANGIBLE FIXED ASSETS 

Acqusition cost Buildings Office Computers Other Works Assets in Software Other Total 

equipment equipment of art progress intangibles 

At 1 January 2002 41,243 5,872 5,387 8,395 416 17,619 9,671 13,079 101,682 

Additions 86 866 1,8231,816 27316,074 2,045 1,482 24,465 

Transfer from assets 

in progress 88 798 284 1,134 (10,345) 4,477 3,564 - 

Disposals (65) (12) (123) (200) 

Write off (142) (142) 

At 31 December 2002 41,352 7,536 7,482 11,222 689 23,348 16,193 17,983 125,805 

Accumulated 

depreciation 

At 1 January 2002 6,261 2,625 3,922 4,978 3,631 3,230 24,647 

Charge for the year 1,685 1,390 1,532 1,432 2,341 3,408 11,788 

Disposals (15) (12) (123) (150) 

Eliminated by write off (142) (142) 

At 31 December 2002 7,931 4,015 5,442 6,287 5,972 6,496 36,143 

Net book value 

At 1 January 2002 34,982 3,247 1,465 3,417 416 17,619 6,040 9,849 77,035 

At 31 December 2002 33,421 3,521 2,040 4,935 689 23,348 10,221 11,488 89,663 




21. DEPOSITS FROM BANKS AND OTHER MONEY MARKET DEPOSITS 

Deposits from: 31/12/2002 31/12/2001 

HRK (000) HRK (000) 

In Croatian kunas 

Croatian commercial banks 26,300 17,709 

Other domestic financial institutions 236,232 72,675 

Foreign banks 2,666 

265,198 90,384 

In foreign currencies 

Croatian commercial banks 81,907 118,971 

Other domestic financial institutions 92,506 32,124 

Foreign banks 4,185,944 1,920,855 

4,360,357 2,071,950 

Total 4,625,555 2,162,334 

22. AMOUNTS OWED TO OTHER DEPOSITORS 

Deposits from: 31/12/2002 31/12/2001 

HRK (000) HRK (000) 

Citizens 


in foreign currencies 1,781,192 1,289,519 

1,920,037 1,344,476 

Corporate clients 

in Croatian kunas 1,013,893 427,932 


1,475,540 651,213 

Total 3,395,577 1,995,689


Maturity of deposits from banks, other money market 

deposits and amounts owed to other depositors: 

31/12/2002 31/12/2001 

HRK (000) HRK (000) 

Demand deposits and deposits up to 3 months: 

in Croatian kunas 1,055,417 503,858 

in foreign currencies 1,068,469 780,990 

2,123,886 1,284,848 

From 3 months to 1 year: 



502,300 228,418 

From1 to 3 years: 


in foreign currencies 1,234,650 775,959 

1,294,728 797,437 

Over 3 years: 


in foreign currencies 4,057,428 1,838,167 

4,100,218 1,847,320 

Total 8,021,132 4,158,023 

Average interest rate paid on deposits in the year 2002 was 3.98% (2001 4.94%.). 

23. ACCRUED INTEREST PAYABLE AND OTHER LIABILITIES 

31/12/2002 31/12/2001 

HRK (000) HRK (000) 

Interest payable to other banks 968 725 

Interest payable to other companies and individuals 5,341 4,364 

Accrued interest on customers' term deposits 33,621 18,277 

Accrued interest on deposits from banks 52,415 27,308 

Liabilities to suppliers 18,870 9,817 

Income tax payable 5,834 18,691 

Due to employees 20,947 11,831 

Prepayments of loans given 40,343 33,337 

Inflows from abroad – not allocated 7,296 5,123 

Payment orders to foreign banks in process 58,19377,504 

Taxes payable (except income tax) 410 439 

Other 12,334 6,653 

Total 256,572 214,069 



24. HYBRID INSTRUMENTS 

Currency Depositor Ammount in 

currency HRK (000) 

EUR Hypo Alpe-Adria-Bank AG Klagenfurt 77,731,291 578,499 

EUR Hypo Alpe-Adria-Bank AG Klagenfurt 109,895,216 817,872 

CHF Hypo Alpe-Adria-Bank AG Klagenfurt 4,067,000 20,824 

CHF Hypo Alpe-Adria-Bank AG Klagenfurt 10,325,000 52,867 

Total 1,470,062 


These instruments have maturities of 7 to 10 years. Repayment of these deposits is not possible before the 

redemption date. Repayment of these funds in case of liquidation is subordinated to all other deposits and 

liabilities. The funds can be used to cover the operation losses. In case of any capital increases by the Bank, 

the funds can be used to purchase the shares at their issue or market price if available. 

25. SHARE CAPITAL 

Shareholders of the bank at 31 December 2002 are as follows: 

31/12/2002 31/12/2002 31/12/2001 31/12/2001 

HRK (000) % HRK (000) % 

Hypo Alpe-Adria-Bank AG Klagenfurt 391,434 94.41 257,198 91.74 

European Bank for Reconstruction 

and Development (EBRD) 23,168 8.26 

VCP Finance B.V. 23,168 5.59 

Total 414,602 100.00 280,366 100.00 

In 2002, share capital increased through the issue and payment of 33.559 shares by Hypo Alpe-Adria-Bank 

AG Klagenfurt in the total amount of HRK 134,236 thousand.


26. RELATED PARTIES 

At 31 December 2002, Hypo Alpe-Adria-Bank AG Klagenfurt holds 94.41% (2001: 91.74%) of the bank’s 

voting shares. Other related parties are other entities owned by the parent company. The nature of transactions 

with the above group of entities during the year and as at 31 December 2002 was as follows: 

31/12/2002 

Nature of transactions HRK (000) 

Loans and deposits granted 15,969 

Loans and deposits received 4,313,760 

Interest and fee expense charge for the year 238,862 

Interest and fee income for the year 2,219 

Aside from relations noted in the above table, the Bank had significant related party transactions in the form 

of loans given to employees. As at 31 December 2002 these loans amounted to HRK 61,088 thousand (2001: 

HRK 39,828 thousand). Interest rates on the loans to employees are below Bank’s average interest rates. 

27. COMMITMENTS AND CONTINGENCIES 

31/12/2002 31/12/2001 

HRK (000) HRK (000) 

Guarantees and letters of credit 542,252 315,122 

Undrawn loan facilities 705,101 227,741 

Other contingencies 10,047 

Risk related off-balance sheet items 1,257,400 542,863 

The accounting policy on estimating the real value of the financial instruments with off-balance sheet risk is 

explained in note 3(k). 




28. MATURITY ANALYSIS 

The following table summarizes the maturities of the assets and liabilities of Hypo Alpe-Adria-Bank d.d. as of 

31 December 2002: 

Assets In HRK (000) 

Up to 3 month 1 to 3 years Over 3 years Undefined Total 

3 months to 1 year maturity 

Cash, nostro and balances 

with the Central bank 1,266,999 (583) 1,266,416 

Treasury bills and dealing securities 255,744 294,359 44,527 (2,840) 591,790 

Placements with and loans and 

advances to other banks 620,130 12,235 8,066 9,044 (6,736) 642,739 

Loans and advances to customers 966,561 1,445,474 1,064,592 4,417,100 (286,467) 7,607,260 

Investement securities 28,885 28,885 

Other assetes and interest receivable 161,434 (1,510) 159,924 

Tangible and intangible assets 89,66389,663 

Total assets 3,270,868 1,752,068 1,072,658 4,470,671 (179,588) 10,386,677 

Liabilites In HRK (000) 

Up to 3 month 1 to 3 years Over 3 years Undefined Total 

3 months to 1 year maturity 

Deposits from banks and 

other financ. institutions 289,163 198,075 436,715 3,701,602 4,625,555 

Amounts owed to other depositors 2,138,109 617,763 466,265 173,440 3,395,577 

Accrued interest and other liabilities 256,572 14,602 271,174 

Hybrid instruments 1,470,062 1,470,062 

Total liabilities 2,683,844 815,838 902,980 5,345,104 14,602 9,762,368 

Net position 587,024 936,230 169,678 (874,433) (194,190) 624,309


29. ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES 

The following table summarizes the net foreign currency position of Hypo Alpe-Adria-Bank d.d. 

as of 31 December 2002: 

Assets 

Croatian Foreign Loss Total 

Kunacurrency provisions HRK (000) 

(HRK 000) in HRK (000) HRK (000) 

Cash,nostro and balances 

with the Central bank 673,804 593,195 (583) 1,266,416 

Treasury bills and dealing securities 483,382 111,233 (2,825) 591,790 

Placements with and loans and 

advances to other banks 37,251 612,224 (6,736) 642,739 

Loans and advances to customers 699,719 7,194,008 (286,467) 7,607,260 

Investment securities 28,885 28,885 

Interest receivable and other assets 85,84379,181 (5,100) 159,924 

Tangible and intangible assets 89,66389,663 

Total assets 2,098,547 8,589,841 (301,711) 10,386,677 

Liabilities 

Croatian Foreign Loss Total 

Kunacurrency provisions HRK (000) 

(HRK 000) in HRK (000) HRK (000) 

Deposits from banks 235,618 4,389,937 4,625,555 

Amounts owed to other depositors 1,078,293 2,317,284 3,395,577 

Accrued interest and other liabilities 99,027 157,545 14,602 271,174 

Hybrid instruments 1,470,062 1,470,062 

Capital and reserves 624,309 624,309 

Total liabilities and capital 2,037,247 8,334,828 14,602 10,386,677 

The major portion of foreign currency assets and liabilities of the Bank at 31 December 2002 is denominated 

in EUR. 

Common Croatian banking practice includes the pegging of HRK loans to a stable foreign currency. Assets 

/ liabilities pegged to foreign currency are presented as foreign currency items. 




30. INTEREST RATE SENSITIVITY 

Most of the interest bearing assets (with exception of government bills and bonds which are contracted at a 

fixed interest rate) and all interest bearing liabilities were contracted with variable rates of interest. All of the 

variable interest rates are a subject to change within 3 months. The Management of the Bank believes this to 

be an efficient method of battling possible market changes in interest rates. 

31. CONCENTRATION OF ASSETS AND LIABILITIES 

In the Bank’s liabilities as at 31 December 2002 and 2001, were included loans and deposits, including hybrid 

instruments placed by Hypo Alpe-Adria-Bank AG Klagenfurt in the amount of HRK 5,608,893 thousand 

(2001: HRK 3,384,975 thousand respectively). 

32. FAIR VALUE OF FINANCIAL INSTRUMENTS 

Fair value represents the amount at which an asset could be exchanged or a liability settled on an arms 

length basis. 

As verifiable market prices are not available for a significant proportion of the bank’s financial assets and 

liabilities, fair values for these items have been based on the Management assumptions according to the 

profile of the asset and liability base. In the opinion of the Management, fair values are not significantly different 

from book values for all asset and liability categories. 

The accounting policy on the fair value of financial instruments is explained in note 3(j).


REPORT OF THE SUPERVISORY BOARD 

Pursuant to Art. 263 Sec. 3 of the Commercial Law 

and pursuant to Art. 8 Section 2c) of the Rules of 

Procedure for the Supervisory Board of the Hypo 

Alpe-Adria-Bank d.d., Zagreb, Koturaška 47, at its 

regular 28th meeting held on 21 March 2003 in the 

business premises of the Bank, the Supervisory 

Board submits to the members of the General 

Meeting of Shareholders the following report. 

The Supervisory Board has been regularly informed 

at its meetings on the company's situation by the 

Management Board. In the previous period the 

company acted according to the Law on Banks, the 

Commercial Law and other laws which prescribe 

business operations and ordinary activities of the 

Bank, according to internal documents of the Bank 

as well as according to the decisions of the General 

Meeting of Shareholders. 

DISCORDIA AUDIT d.o.o, officially seated in Zagreb, 

Marijana Haberlea 12, acting as licensed auditor of 

the Bank, has audited the annual financial 

statements and the statement of company's situation 

for the business year 2002 and gave their unlimited 

confirmation of positive opinion. 

The Supervisory Board adopts the annual financial 

statement as presented by the Management Board 

and as audited by the authorized auditor, and 

establishes that the mentioned financial statement 

reflects the correct current property and business 

status of the Bank and is in conformity with the 

business books of the Bank. 

Further on, the Supervisory Board adopts the 

proposal of the Management Board on the 

established profit of the company for the business 

year 2002. Accordingly as well as having verified 

the proposal, the Supervisory Board proposes that 

the General Assembly of Shareholders make the 

decision on profit distribution in amount of HRK 

133,302,292.40 for the year 2002 as below: 

1. legal reserves 5% 

HRK 6,665,114.62 

2. paying out dividend to shareholders 

in amount of HRK 80,427,497.09 

a) Hypo Alpe-Adria-Bank AG 

HRK 76,000,000.00 

b) VCP Finance B.V. 

HRK 4,427,497.09 

3. other reserves of the Bank 

HRK 46,209,680.69 

Zagreb, 21 March 2003 

Chairman of the Supervisory Board 





COMPANY ORGANS 

1 JANUARY 2002 TO 31 DECEMBER 2002 

Supervisory Board: 

Dr. Wolfgang Kulterer, President 

Hypo Alpe-Adria-Bank AG, Klagenfurt 

Mag. Günter Striedinger, Vice-President 


Dipl.-Ing. Dr. Gerd Penkner, Member 

Kärntner Landesholding, Klagenfurt 

Dr. Othmar Ederer, Member 

Grazer Wechselseitige Versicherung AG, Graz 

Dr. Roberto Marzanati, Member 

EBRD, London 

(until 21 October 2002) 

Mag. Gerhard Süss, Member 


(until 22 October 2002) 

Management Board: 

Mag. Heinz Truskaller 

President 

Igor Kodžoman, B.Sc. 

Member (until 4 December 2002) 

Vice-President (as of 5 December 2002) 

Zoran Sikirica, M.Sc. 

Member (as of 3 July 2002)


HYPO ALPE-ADRIA-BANK IN CROATIA 

Hypo Alpe-Adria-Bank d.d. 

Headquarters Zagreb 

Koturaška 47, HR-10000 Zagreb 

phone (01) 6103 666, fax (01) 6103 555 

E-mail: bank.croatia@hypo-alpe-adria.com 

www.hypo-alpe-adria.hr 

Zagreb - Trg 

Trg bana J. Jelačića 3, HR-10000 Zagreb 

Tel: +385.1.4891700, Fax: +385.1.4891740 

Zagreb - Trpinjska 

Trpinjska 9, HR-10000 Zagreb 

Tel: +385.1.2358111, Fax: +385.1.2358210 

Čakovec 

Matice Hrvatske 6, HR-40000 Čakovec 

Tel: +385.40.379222, Fax: +385.40.379220 

Dubrovnik 

Obala S. Radića 26 a, HR-20000 Dubrovnik 

Tel: +385.20.431900, Fax: +385.20.431990 

Makarska 

Marineta 2, HR-21300 Makarska 

Tel: +385.21.695300, Fax: +385.21.695310 

Metković 

Ivana Gundulića 20/2, HR-20350 Metković 

Tel: +385.20.690555, Fax: +385.20.690500 

Opatija 

Maršala Tita 128, HR-51410 Opatija 

Tel: +385.51.271150, Fax: +385.51.271114 

Poreč 

Vukovarska 19, HR-52440 Poreč 

Tel: +385.52.408666, Fax: +385.52.408616 

Pula 

Giardini 2, HR-52100 Pula 

Tel: +385.52.377100, Fax: +385.52.377125 

Rijeka 

Jadranski trg 3, HR-51000 Rijeka 

Tel: +385.51.660444, Fax: +385.51.660400 

Samobor 

Livadićeva 20, HR-10430 Samobor 

Tel: +385.1.3331111, Fax: +385.1.3331122 

Split - Poljička 

Poljička cesta 39, HR-21000 Split 

Tel: +385.21.453100, Fax: +385.21.466100 

Split - Peristil 

Krešimirova 11, HR-21000 Split 

Tel: +385.21.346222, Fax: +385.21.346862 

Umag 

Trgovačka 1b, HR-52470 Umag 

Tel: +385.52.703111, Fax: +385.52.703100 

Varaždin 

Kukuljevićeva 7, HR-42000 Varaždin 

Tel: +385.42.302450, Fax: +385.42.320790 

Velika Gorica 

Trg kralja Petra Krešimira IV 3, HR-10410 Velika 

Gorica 

Tel: +385.1.6379666, Fax: +385.1.6379600 

Zadar 

Jurja Barakovića 4, HR-23000 Zadar 

Tel: +385.23.200900, Fax: +385.23.200999 

Hypo-Leasing Kroatien d.o.o. 

Headquarters Zagreb 

Koranska 16, HR-10000 Zagreb 

Tel: +385.1.6324444, Fax: +385.1.6324455 

E-mail: leasing.croatia@hypo-alpe-adria.com 

web: hypo-leasing.hr 

Hypo Alpe-Adria Consultants d.o.o. 

Koranska 16, HR-10000 Zagreb 

Tel: +385.1.6324300, Fax: +385.1.6324320 

E-mail:consultants.croatia@hypo-alpe-adria.com 

Hypo Alpe-Adria Vrijednosnice d.o.o. 


Tel: +385.1.6103700, Fax: +385.1.6103670 

E-mail:invest.croatia@hypo-alpe-adria.com 

www.hypo-securities.hr 

Hypo Alpe-Adria-Invest d.d. 

Trpinjska 9, HR-10000 Zagreb 

Tel: +385.1.2358151, Fax: +385.1.2358201 

E-mail:invest.croatia@hypo-alpe-adria.com 

www.hypo-securities.hr 

Slavonska Banka d.d. Osijek 

Member of the Hypo Alpe-Adria-Group 

Kapucinska 29, 31000 Osijek 

Tel: +385 31 231 231, Fax +385 31 201 039 

E-mail: slbo@slbo.hr 

www.slbo.hr 




HEADQUARTERS 

HYPO ALPE-ADRIA-BANK 

AUSTRIA 

Hypo Alpe-Adria-Bank AG 

A-9020 Klagenfurt, Alpen-Adria-Platz 1 

Tel: +43 (0) 5 02 02-0, Fax +43 (0) 5 02 02-3000 

E-mail: austria@hypo-alpe-adria.com 

www.hypo-alpe-adria.com 

Hypo Leasing Kärnten GmbH 


Tel: +43 (0) 5 02 02-6000, Fax +43 (0) 5 02 02-3208 

E-mail: leasing.austria@hypo-alpe-adria.com 

Hypo Alpe-Adria-Consultants GmbH 


Tel: +43 (0) 5 02 02-2504, Fax +43 (0) 5 02 02-3575 

E-mail: consultants.austria@hypo-alpe-adria.com 

ITALY 

Hypo Alpe-Adria-Bank S.p.A. 

33100 Udine, Viale Venezia, 100 

Tel: +39 0432 532688, Fax +39 0432 538551 

E-mail: bank.italy@hypo-alpe-adria.com 

Leasing division 


Tel: +39 0432 532130, Fax +39 0432 532134 

E-mail: leasing.italy@hypo-alpe-adria.com 

Hypo Alpe-Adria-Consultants S.r.l. 


Tel: +39 0432 233609, Fax +39 0432 206232 

E-mail: consultants.italy@hypo-alpe-adria.com 

SLOVENIA 


1000 Ljubljana, Trg Osvobodilne fronte 12 

Tel: +386 1 30 04 400, Fax +386 1 30 04 401 

E-mail: bank.slovenia@hypo-alpe-adria.com 

Hypo Leasing d.o.o. 

1000 Ljubljana, Trg Osvobodilne fronte 12 

Tel: +386 1 30 04 500, Fax +386 1 30 04 511 

E-mail: leasing.slovenia@hypo-alpe-adria.com 

Hypo Alpe-Adria-Consultants d.o.o. 

1000 Ljubljana , Železna cesta 16 

Tel: +386 1 420 53 25, Fax +386 1 420 53 23 

E-mail: consultants.slovenia@hypo-alpe-adria.com


BOSNIA AND HERZEGOVINA 


Centrala - Headquarters 

BIH - 88000 Mostar, Kneza Branimira 2b 

Tel: +387 36 444 200, Fax +387 36 444 235 

E-mail:bank.bih@hypo-alpe-adria.com 

Kristal Banka a.d. 

Centrala – Headquarters 

Member of the Hypo Alpe-Adria-Group 

BIH/RS-78000 Banja Luka, I. F. Jukića 9 

Tel: +387 (0)51 212 930, Fax +387 (0)51 212 878 

E-mail: kristalbanka@kristalbanka.ba 

HYPO Leasing d.o.o. 

88000 Mostar, Kneza Branimira 2 

Tel: +387 36 444 555, Fax. +387 36 444 500 

E-mail: leasing@hypo-alpe-adria.com 

LIECHTENSTEIN 

Hypo Alpe-Adria-Bank (Liechtenstein) AG 

9494 Schaan, Landstraße 126A 

Tel: +423 235 01 11, Fax +423 235 01 02 

E-mail: info@hypo-alpe-adria.li 

SERBIA AND MONTENEGRO 

Hypo Alpe-Adria-Bank a.d. Beograd 

11000 Beograd, Franše D’Eperea 88 

Tel: +381 11 3026 500, Fax +381 11 648 845 

E-mail: office@hypo-alpe-adria.co.yu 

Hypo-Leasing d.o.o. Beograd 

11000 Beograd, Studentski trg 4 

Tel: +381 11 3283-780, Fax 00381 11 3283-098 

E-mail: leasing.belgrade@hypo-alpe-adria.com 

BELGIUM 

Hypo Alpe-Adria-Bank AG 

Representative office 

1040 Bruxelles, Avenue d’Auderghem 67-3 

Tel: +32 2 231 1007, Fax +32 2 231 1245 

E-mail: philipp.strommer@hypo-alpe-adria.com 




Responsible for content: 



Tel: +385 1 6103 666 

Fax +385 1 6103 555 

E-Mail: bank.croatia@hypo-alpe-adria.com 

www.hypo-alpe-adria.hr 

wap.hypo-alpe-adria.hr 

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References 

Antun Bonifačić, Valovi. From: Stijepo Mijović Kočan. Skupljena Baština (Suvremeno hrvatsko pjesništvo 1940-1990), Školske novine 1993; Miloš 

Crnjanski, Beograd. From: Sabrana Dela. Knjiga cetvrta. Poezija, Prosveta, Beograd 1966; Mak Dizdar, Zapis o rijeci. From: Izabrana djela. Kameni 

Spavač. Svetlost, Sarajevo 1981; Pier Paolo Pasolini, In meinem Dorf. From: Pier Paolo Pasolini. Wie eine Viole in Casarsa. Friulanische Gedichte. 

Edition Braitan 1988; France Prešeren, Zdravljica. From: France Prešeren. Doktorja Francéta Presérna Zbrano delo, Neuauflage Wieser Verlag, 

Klagenfurt 1997; Rainer Maria Rilke, Ausgesetzt auf den Bergen des Herzens. From: Rainer Maria Rilke. Der ausgewählten Gedichte erster Teil, 

Insel-Bücherei Nr. 400, 1954.

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