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Press release, Hanover, 26 August 2002 Deutsche Hypo records gratifying result The difficult economic environment notwithstanding, the ING BHF-BANK Group subsidiary Deutsche Hypothekenbank (Actien-Gesellschaft), Hanover/Berlin, posted a gratifying result in the first half of the current business year. Decline in new business The uncertainty on the capital markets and the resulting difficulty in forecasting interest rate developments led to considerable restraint in new public sector loans which amounted to EUR 925 million, thus recording a decline of 48%. The weakness of the equity markets did, however, help improve returns in this area of business. In the first half-year, Deutsche Hypo issued new mortgage loans in the amount of EUR 661 million (-16%). In the UK, Benelux and France, the company was able to acquire EUR 436.5 million in financing (-23%). The foreign portion of the total mortgage loan portfolio increased from 24% to the current level of 29%. At EUR 224.7 million, domestic business remained at the previous year's level. Despite the rather reserved start of the first six months, positive signs at the beginning of the third quarter indicate that Deutsche Hypo will be able to match last year's very good performance in the area of new business. The bank issued bonds in the amount of EUR 2.6 billion (previous year: EUR 2.5 billion), EUR 1.0 billion of which was issued in the form of Jumbo mortgage bonds (Pfandbriefe). Income situation stable At EUR 47.2 million, Deutsche Hypo's net interest and commission income was 4.3% lower than the previous year's result. The increase in administrative expenses, which rose by 7.5% to EUR 15.7 million, was largely due to the implementation of new accounting rules as well as projects related to Basle II. This item also contains personnel costs of EUR 8.9 million (+ 2.1%) and other administrative costs of EUR 6.8 million (+ 15.3%). At a level of EUR 9.9 million, the balance of provisions for risk fell by 16.8% as compared to the previous year. Provisions were made on the basis of conservative principles with value adjustments being made for all discernible risks. The bank's operating result after provisions for risk fell by 7% to EUR 19.9 million. Deutsche Hypo's interest rate risk, expressed as a value-at-risk figure, amounted to EUR 8.6 million (previous year: EUR 11.3 million) as at the cut-off date at the end of June and averaged EUR 9.1 million (previous year: EUR 8.4 million) in the first half-year. Outlook Deutsche Hypo does not foresee any significant change in the income situation for the second half-year and thus expects that the bank will not quite match the previous year's result. 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 |
