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Press release, Hanover, 23 November 2001 Deutsche Hypo increases new business and achieves satisfactory result Deutsche Hypothekenbank (Actien-Gesellschaft), Hanover/Berlin, in which BHF-BANK Group has a majority holding, is satisfied, in overall terms, with the business results achieved in the first nine months of the current year, the difficult economic parameters notwithstanding. New mortgage business exceeds forecast At € 3.8 billion (+ 59 %), total new business was clearly up on the previous year's result. The bank exploited the interest spread of up to 130 basis points between 10-year maturities and three-month money and the resulting business opportunities to conclude capital market transactions in the amount of € 2.4 billion (+ 70 %). In mortgage loan business, Deutsche Hypo further continued its positive development. New loan commitments rose by 44 % to € 1.3 billion, with foreign lending business contributing approx. 59 % to the overall result. Domestic new mortgage business recorded € 551 million, thus slightly exceeding the previous year's result. The bank issued bonds in the amount of € 4.1 billion for refinancing purposes (previous year: € 2.7 billion), € 1.3 billion of which was issued in the form of Jumbo mortgage bonds. At € 72.3 million, Deutsche Hypo's net interest and commission income developed according to plan and matched the previous year's result. Administrative expenses amounted to € 22.0 million (+ 6 %). The operating result before provisions for risk amounted to € 48.2 million (previous year: € 48.0 million). By allocating € 16.8 million (previous year: € 14.2 million) to provisions for risk, the bank took account of all discernible risks. The rise of approx. € 2.6 million in provisions meant that the bank's operating profit after provisions for risk fell by 7 % to € 31.4 million. Deutsche Hypo's interest rate risk, expressed as a value-at-risk figure, amounted to € 17.7 million as at the cut-off date at the end of September 2001. It averaged € 9.8 million, or 8 % of the liable equity capital, and thus remained well within the equity capital recommendations of the German Banking Supervisory Office. Gratifying rise in Deutsche Hypo share price In the context of the compensation offer made by BHF Holding to the outside shareholders of BHF-BANK, the value of BHF-BANK's shareholding in Deutsche Hypo was also determined, the value per unit share of the bank being set at € 406.65. Following a corresponding ad hoc statement by the bank, the share price rose significantly and currently trades at approx. € 285. The price per unit share had been € 214 at the end of the year 2000. Outlook Following the tragic terrorist attacks of 11 September in the USA and the subsequent acceleration in the downward economic trend worldwide, the bank anticipates more difficult parameters for its operating business. The Board of Managing Directors does not expect Deutsche Hypo to match the very good overall result of the previous year. 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 |
