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2021/09/17 / Erste Group Research

Oberoesterreichische Landesbank AG

Oberoesterreichische Landesbank AG (HYPO OOE) is operating as a regional universal bank in its core market of Upper Austria. The province of Upper Austria holds a 50.6% stake in the bank, while Raiffeisen-Landesbank Oberoesterreich holds a 41.1% stake.

HYPO OOE has posted pre-tax earnings of EUR 10.8mn for 2020, which corresponds to a decline of 22.7%. The year-on-year decline is mainly attributable to increased risk costs, which rose to EUR -5.6mn in 2020 as a result of the COVID-19 crisis. In the first half of 2021, HYPO OOE managed to significantly increase its pre-tax profit to EUR 14.9mn (2020: EUR -4mn).

Hypo OOE has a rating of 'A+' from S&P with a negative outlook. In April 2020 the rating outlook was revised from 'stable' to 'negative' due to the increasing risks to the economy posed by the COVID-19 pandemic.

Hypo OOE issues covered bonds under the legal framework of the Austrian Mortgage Bond Act. The institution's public sector covered bonds are currently not rated. Its mortgage covered bonds are rated 'AA+'/'stable' by S&P and the bank has committed itself to provide the overcollateralization required to maintain the current rating. A first green bond was issued in September 2021.

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General information

AuthorErste Group Research
Date2021/09/17
Languageen
Product nameCredit News
Topic in focusCredits/ Corporate bonds
Economy in focusAustria
Currency in focusEuro
Sector in focus-
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