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Press release, Hanover, 14 November 2003 The ING BHF-BANK Group company Deutsche Hypothekenbank (Actien-Gesellschaft), Hanover/Berlin, is satisfied with its result, taking into account the overall picture of basic economic data during the current year and particularly on the basis of the year-on-year comparison. Overall development of new business positive The rise in the total volume of new business, up 78.2% year-on-year to € 6.2 billion, is a pleasing improvement. At € 5.4 billion, capital market business continues to develop very positively, up by more than 200% compared with the same period of the previous year. On the European bond market, Deutsche Hypo issues continue to enjoy a high level of investor interest. The Bank believes that it can successfully continue to pursue this business without any major transformation risks. In mortgage lending business, new loan commitments by Deutsche Hypo, at € 841 million, were, as expected, down on the previous year (- 51%) due to the ongoing weakness of the real estate market in Germany and the divergent developments in the different real estate sectors in the Bank's target markets abroad. The portfolio recorded a slight decline of 0.5% to € 8.6 billion and remained at the previous year's level. Income situation remains gratifying Net interest and commission income was € 73.9 million in the period under review, 11% down on the previous year. Taking into account the rise in administrative expenses, which were up by an expected 6% to € 24.5 million, the operating result before risk provisioning increased by 13.5% to € 52 million. € 19.9 million (+ 19%) was allocated to risk provisioning as at the end of the third quarter, reflecting our conservative approach to valuations. As at 30 September 2003 the Bank posted an operating result before tax of € 34.1 million, an increase of 17% over the same period of the previous year. Outlook In view of the continued lack of impetus for growth in the real estate sector and the sluggish improvement in the basic macroeconomic parameters, Deutsche Hypo is satisfied with its overall performance, not least due to the pleasing state of public-sector lending business combined with a further reduction in the interest rate risk. Looking at 2003 as a whole, the Bank is optimistic that it can at least 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 |
