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Press release, Hanover, 28. November 2000 Income up at Deutsche Hypo Deutsche Hypo has continued its stable income development, recording an increase of 4 %. Despite what is currently a difficult economic environment for the sector, the Bank succeeded in raising its net interest and commission income whilst at the same time reducing administrative expenses and risk provisioning. Deliberate restraint in capital market business At EUR 1.4 billion, Deutsche Hypo's capital market business was some 52 % down on the previous year. In view of the unfavourable interest rate situation with regard to Treasury activities over the course of the year, the Bank exercised deliberate restraint towards the conclusion of new business in this area. Interest rate risks have been kept low. The business area's overall result for the year to date has been gratifying. For refinancing purposes the Bank issued bonds with a value of EUR 2.7 billion (1999: EUR 3.6 billion). New mortgage business satisfactory Despite the predominantly weak state of the economy on the real estate markets, Deutsche Hypo was able to conclude a satisfactory level of new mortgage loans. At EUR 936 million the volume of new loans was 9 % down on the previous year, enabling the Bank to stabilise the exceptionally high level of growth recorded in 1999 (+ 50 %). Domestic business accounted for EUR 535 million of new business, whilst EUR 401 million could be attributed to foreign transactions. Further improvement in income situation Despite the fall in new business, the Bank was able to further improve its income situation. Net interest and commission income rose by 3.3 % to reach EUR 71.8 million. Administrative expenses fell slightly to EUR 20.7 million, with the result that the already low cost/income ratio could be cut further to 28.8 % (1999: 30.1 %). EUR 14.2 million was allocated to risk provisioning (1999: EUR 16.5 million), with provisions being made for all discernible risks. These developments, which were gratifying on the whole, led to a 4 % increase in the operating result after risk provisioning to reach EUR 33.8 million. On the basis of this year's business performance to date, the Board of Managing Directors expects the result for 2000 as a whole to be satisfactory. For further information please contact: Markus Nitsche Head of Marketing and Sales Georgsplatz 8 30159 Hannover Telefon: +49 511 3045-580 Telefax: +49 511 3045-589 E-Mail: Markus.Nitsche@Deutsche-Hypo.de |
