Hypo NÖ reports lower first-half profit as lending rises

Hypo NÖ’s net profit fell slightly to nearly 18 million euros in the first half of 2026, ORF reported on Saturday. Chief Executive Wolfgang Viehauser nevertheless said he was “very satisfied” with the bank’s performance, citing strong growth in housing loans.

The bank recorded a net profit of around 18 million euros, down from approximately 20 million euros in the same period last year. Profit before tax fell from 25 million to 22.4 million euros.

Viehauser described the result as solid despite geopolitical uncertainty, weak economic conditions and growing pressure on public finances. He attributed the decline mainly to a one-off effect from the release of provisions in the previous year. The increased bank levy also weighed on earnings, rising from 2.4 million euros in 2024 to 11 million euros in 2026.

Hypo NÖ issued around 700 million euros in new loans. Housing finance increased by 18 percent compared with the same period last year. Net interest income fell from 82.2 million to 80.8 million euros by the end of June, while net fee and commission income rose by 9.6 million euros to 12.2 million euros, mainly because of securities business.

The ratio of non-performing loans declined from 2.96 percent to 2.84 percent.

Viehauser said pressure on public finances was noticeable and that projects were being postponed. In addition to housing loans for private customers, Hypo NÖ primarily finances public and social infrastructure, as well as cooperative and commercial housing projects.

The bank will continue to focus on projects with social value, including the Bildungscampus Nordwestbahnhof education campus in Vienna. The project has total investment costs of around 90 million euros and is being developed through a public-private partnership with Strabag Real Estate and Caverion. It is scheduled to provide space for around 1,600 children from 2028 or 2029.

Viehauser said he was “quite optimistic” about the second half of the year. The bank expects stable performance despite the challenging environment, while the possibility of another key interest rate increase remains a key question.

Hypo NÖ is wholly owned by the province of Lower Austria. Its workforce fell from 623 to 605 employees, while the number of branches remained unchanged at 26. Founded in 1888, the bank describes itself as Austria’s oldest and largest provincial bank.