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Press release, Hanover, 14 August 2003 Deutsche Hypothekenbank (Actien-Gesellschaft), Hanover/Berlin, a member company of ING BHF-BANK Group, has experienced a mixed first half-year in public-sector and mortgage business, its core areas of activity. Significant expansion of new public-sector business There was a clear increase of EUR 2.7 billion in public sector business to EUR 3.6 billion. The Bank profited from a widening of margins in domestic and foreign public-sector lending and from a high level of investor interest in the Bank's issues, providing a favourable platform for refinancing on the money and capital market. These basic parameters enabled the Bank to increase its volume of new business without being subjected to additional interest rate risks. The Bank's interest rate risk position, defined according to the Federal Financial Supervisory Authority's "traffic light model", duly fell during the first six months of the year from 3.36% to 0.25%. The average value, at 1.5%, was lower than the figure for the same period of 2002 (4.3%). Mortgage business, on the other hand, moved in the opposite direction. With the economic environment in Deutsche Hypo's core markets remaining difficult, there was a consolidation in the real-estate sector. The Bank reacted to this trend by adjusting its lending criteria, resulting in a 36% reduction in new mortgage business to EUR 422 million. At 46%, the share of lending on properties elsewhere in Europe remained down on the previous year (66%). Further improvement in income position The Bank's income position developed positively. Net interest and commission income was up 8 % to EUR 47.3 million. As expected, administrative expenses rose 6% to EUR 16.7 million, predominantly due to investments in the "International Accounting" and "Basle II" projects. EUR 11.1 million was allocated to risk provisioning (compared with EUR 9.9 million in the previous year), thereby taking account of all discernible risks. On balance, the result from normal operations increased 14.6% to EUR 22.8 million. Outlook On the basis of the Bank's expectations for the future of the economy, the resulting impact on business activity and the picture for the year to date, Deutsche Hypo is confident that it can match last 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 |
