Chief Executive Officer explains

Why Hypo OÖ

"Our service quality is top and innovative," says Hypo Oberösterreich CEO Klaus Kumpfmüller(Bild: Daniel Scharinger, Markus Wenzel, Krone KREATIV)

Hypo Oberösterreich remains something of a Gallic village when it comes to residential construction financing. In 2022, the bank had already suffered far fewer declines than other financial institutions, and in the previous year the decline was also significantly lower than elsewhere. Why is that?

While other banks had to accept a drop of 50 to 60 percent in residential construction financing, Klaus Kumpfmüller presented significantly better figures for Hypo Oberösterreich. New loans granted in privately financed residential construction fell by 23.7 percent at the bank, which operates out of Linz, in 2023. "We disbursed around 160 million euros in private residential construction financing last year," said Kumpfmüller.

We have noticed a growing interest in private residential construction financing in recent months. It helps that the exemption from fees, which is anchored in the new housing package, came into force immediately.

Klaus Kumpfmüller, Vorstandsvorsitzender der Hypo Oberösterreich

How is it possible to perform significantly better than the other banks? It also has to do with Hypo OÖ's customer structure. "We have many people who earn higher incomes - such as doctors and freelancers. They can afford real estate despite higher costs," explains the bank manager. The bank also uses loan brokers to support its own sales team.

Profit before taxes increased by 2.8 million euros
Hypo Oberösterreich was able to increase its pre-tax profit to EUR 42.9 million in the previous year, an increase of EUR 2.8 million compared to the previous year. There was an enormous increase in digital payment transactions: Only 0.3 percent were carried out directly over the counter in the previous year. The branch network comprises eleven locations - ten in Upper Austria and one in Vienna: "We will keep it that way."