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Press release, Hanover, 22 November 2002 Deutsche Hypo records satisfactory result The difficult market environment notwithstanding, the ING BHF-BANK Group subsidiary Deutsche Hypothekenbank (Actien-Gesellschaft), Hanover/Berlin, posted a satisfactory result. New mortgage loan business develops positively At EUR 1.7 billion, new mortgage loans of Deutsche Hypo were approximately 27 % up on the very good level recorded in the previous year. In the UK, Benelux and France, the bank was able to acquire EUR 908 million (+ 15 %) in financing. The bank's domestic business increased by 46 % to EUR 804 million, whilst its portfolio posted a considerable rise of 12 % to the current level of EUR 8.6 billion. Due in particular to a very weak first half-year, new public-sector loans transactions did not match the previous year's result, coming in at a volume of EUR 1.8 billion (- 27 %). Against the background of interest rate developments, however, the third quarter fared significantly better. With interest rates having reached their current level, the bank assumes a further significant increase in capital market transactions to be very unlikely. Deutsche Hypo Pfandbriefe well received by investors To refinance its activities, the bank issued bonds in the amount of EUR 4.3 billion (previous year: EUR 4.1 billion), EUR 1.25 billion of which was issued in the form of Jumbo mortgage bonds (Pfandbriefe). Deutsche Hypo's Pfandbriefe have been largely unaffected by the current difficult conditions on the mortgage bond market, showing stable spreads. Income situation stable At EUR 71.7 million, Deutsche Hypo's net interest and commission income was down 0.8 %, nearly matching the previous year's result. The operating result before provisions for risk amounted to EUR 45.8 million, 5 % below the previous year's level. This was due, among other things, to a 5 % increase in administrative expenses to EUR 23.1 million. The higher administrative expenses were attributable to the implementation of new accounting rules as well as projects related to the Basle Capital Accord. The balance of provisions for risk amounted to EUR 16.7 million (previous year: EUR 16.8 million) taking account of all discernible risks. As at 30 September 2002, the bank showed a pre-tax operating result of EUR 29.1 million (- 7.3 %). Deutsche Hypo's interest rate risk, expressed as a value-at-risk figure, amounted to EUR 8.3 million (previous year: EUR 17.7 million) as at the end of September 2002 and averaged EUR 8.3 million (previous year: EUR 9.8 million) for the current year. At 1.55 % of liable capital, the interest rate risk figure that financial institutions are required to report to the German Federal Financial Supervisory Agency (BAFin) was well below the legal limit of 10 %. Outlook For the business year 2002 as a whole, the bank expects the result to be lower than that of the previous year. Against the background of the difficult economic situation, which did not develop as had been expected at the beginning of the year, the bank considers the result 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 |
