Anadi Bank is struggling with a loss of 92 million euros in the real estate crisis!

Anadi Bank is struggling with a loss of 92 million euros in the real estate crisis!

The Anadi Bank in Carinthia is facing enormous financial challenges as a result of the ongoing real estate crisis. According to a report by the Small newspaper The bank reports an annual deficit of 92.2 million euros for 2024, after generating a surplus of 800,000 euros in the previous year. The economic difficulties are primarily due to massive write-downs that the bank had to make due to its high exposure to real estate financing.

Anadi Bank's net interest income has fallen sharply compared to the previous year; it is 13.3 million euros for 2024, while it was 48.4 million euros in 2023. The balance sheet total has also fallen significantly: it is now 1.41 billion euros, after 2.45 billion euros in 2023. The loan volume has also reduced drastically and is 1.04 billion euros, compared to 1.87 billion euros in the previous year.

Consolidation measures and workforce reductions

In order to meet the challenges, CEO Sonja Sarközi is implementing a comprehensive consolidation program, which includes, among other things, a social plan for employees who have left the company. So far, almost 40 employees have already been laid off and a phase of cost consolidation is being sought. Capital-intensive and non-strategy businesses are being wound down, particularly in the corporate sector.

The bank has also put in place an orderly plan to reduce bad loans. Despite the difficult times, Anadi Bank's capital ratios are above legal requirements. The total capital ratio as of December 31, 2024 was 14.8 percent, a decrease of one percentage point compared to the previous year. The owner has also made a binding financial commitment to support the overall capital requirements.

Impact of the real estate crisis on the banking landscape

The crisis on the Austrian real estate market is not only affecting Anadi Bank, but is also increasingly threatening other banks. According to an article by the Mirror Many banks are facing similar challenges due to falling real estate prices and the European Central Bank's (ECB) tightening interest rate turnaround.

The situation in the market has also led to banks adopting restrictive lending practices, further complicating the recovery of the market. Analysts warn that the crisis could have profound and long-lasting effects on the entire industry.

Anadi Bank therefore finds itself in a critical environment, but has taken steps to stabilize its position. It remains to be seen how market conditions will develop in the coming months and whether Anadi Bank can successfully implement its consolidation strategy.