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Press release, Hanover, 18 March 2003 Deutsche Hypo achieves good income position and consistent dividend The Supervisory Board of Deutsche Hypothekenbank (Actien-Gesellschaft), Hanover/Berlin, has approved the bank's 2002 Annual Accounts at yesterday's balance sheet meeting. Following the allocation of EUR 10 million to the reserves, the Supervisory Board resolved to propose that the Annual General Meeting, to be held in Hanover on 15 May 2003, distribute an unchanged dividend of EUR 10 per share and that a further EUR 8.3 million be allocated to the reserves. New mortgage loan business at a high level New real estate loan business increased by 8.7 % compared with the previous year, reaching EUR 1,965 million. There was a gratifying development in new residential loans, which yielded a 65 % increase to EUR 622 million. Financing in other European countries was almost on a par with last year at EUR 1.1 billion (- 2 %). Foreign financing arrangements now account for 28 % (previous year: 27 %) of the mortgage loan portfolio. Deutsche Hypo has been able to increase its market share in mortgage loans as a result of this positive trend in new business. The bank's market share for loans in the residential sector was 4.1 % (previous year: 1.9 %), whilst commercial financing achieved a 5.6 % share (previous year: 5.5 %) and foreign business 8.1 % (previous year: 7.7 %). Increase in income from public sector business With uncertainty prevailing on the capital markets and an interest rate trend that is difficult to forecast, the bank exercised restraint in taking on new public sector business, which declined by 16 % to EUR 2.3 billion. The bank was, however, able to achieve a gratifying increase in income in this area. The portfolio of capital market transactions reported in the balance sheet as at year-end was EUR 16.6 billion. Satisfactory income position The gratifying development in mortgage loan business made a major contribution to the overall result of Deutsche Hypo. Net interest and commission income reached EUR 99.7 million, 1.8 % higher than the previous year's level. Administrative expenses increased by 6.9 % to EUR 30.8 million due, in particular, to additional expenditure on the implementation of international accounting standards and project costs associated with the new Basle Capital Accord. The continued favourable cost/income ratio worsened slightly from 29.4 % to 30.9 %. The balance of provisions for risk increased by EUR 1.7 million to EUR 21.4 million and has, by conservative standards, taken account of all discernible risks. The pre-tax operating result fell by 6.1 % to EUR 43.3 million, whilst the net income for the year declined by 5.6 % to EUR 28.4 million. Outlook In spite of a continued difficult economic environment and upward pressure on costs from ongoing projects, the bank expects another satisfactory result for the year 2003. 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 |
