Country Awards for Excellence 2014: Western Europe
Substantial exposure to Russia and Ukraine combined with an unorthodox decision by the Austrian government in June to bail-in subordinated bondholders in nationalized bank Hypo Alpe Adria have not exactly helped bring stability back to the country’s banking sector. Indeed, the crisis in Ukraine and the government’s intervention have brought fresh turbulence to an already challenging year for Austrian banks. The bank however, that has shown greatest resilience, growth and development amid such a difficult domestic and regional environment for banking is UniCredit Bank Austria.
Its financial performance in 2013 and so far this year has been healthy, and with a core tier-1 capital ratio of 11.3% at the end of last year it is one of the best capitalized banks in Europe, and in a stronger position than most Austrian banks to withstand the turbulence besetting the country.