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Press release, Hanover, 6 August 2004 First-half results confirm positive trend The first six months of the current financial year have confirmed that the operating result and earnings situation of Deutsche Hypothekenbank (Actien-Gesellschaft), which forms part of ING BHF-BANK Group, continue to reflect a positive trend. New business again higher overall The capital market business continues to develop satisfactorily, achieving a positive performance in which new business grew by € 718 million (up 20% on the same period last year). On the refinancing side, Deutsche Hypo was able to profit from its favourable market position, amongst other things placing two new Jumbo issues with institutional investors at home and abroad. Furthermore, the Bank's Debt Issuance Programme, which was successfully launched in January this year, constantly shows a high level of utilisation. Transactions to the value of € 3.9 billion were brought to the market using this issuing platform. The volume of new commitments in mortgage lending business was influenced by the Bank's still cautious assessment of the market. The commercial loans segment accounted for € 321 million, a drop of 21.3%. Financing commitments by Deutsche Hypo in its foreign target markets also reflected a "wait-and-see" attitude, falling by € 46 million (-23%) compared with the previous year. The rise in the overall volume of new mortgage business was essentially due to the acquisition of a residential portfolio worth approximately € 244 million. Earnings situation remains encouraging Net interest and commission income in the period under review was € 52.0 million, nearly 10% above the previous year's result. This welcome trend was helped by a € 1.6 million (-9.6%) fall in administrative expenses, leading to a substantially higher operating result of € 38.8 million (+20.5%) before risk provisioning. The Bank's cost-income ratio improved once again, and now stands at 29% (previous year: 32.8%). As expected, an amount of € 14.1 million has so far been allocated to the provision for risks (previous year: € 11.1 million). Finally, the Bank's result from normal business activity rose by 8.3% to € 24.7 million. Outlook The first-half figures of Deutsche Hypo confirm its sound competitive position in a market that continues to suffer from economic uncertainty. In view of what has been achieved so far, there is every reason to expect the Bank to report an end-of-year result at least on a par with that of the previous year. 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 |
