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Press release, Hanover, 17 March 2005 Deutsche Hypo presents overall positive results for the 2004 financial year The Supervisory Board of the Deutsche Hypothekenbank (Actien-Gesellschaft), Hanover/Berlin approved the annual accounts for 2004 at today's balance sheet conference and resolved to propose an unaltered high dividend of €11 per unit share to the Annual General Meeting which takes place on 12 May 2005. The financial year of the Deutsche Hypo, a member of the ING Group, was characterised by: · an increase of 1.6% in net interest and commission income; · a reduction of 6.2% in administrative expenses; · an increase of 1.1% in the result from normal business activity ; · an improvement in the cost-income-ratio to 30.3%.; · a record volume of issues totalling €13 bn. Cautious business policy in the mortgage loan business The bank's volume of new mortgage loan business was down 19.5 % to € 1.01 bn, target markets having grown at differing rates. In foreign loans particularly Deutsche Hypo pursued a rather cautious lending policy in some of its target countries, this being reflected in a significant reduction of 36.9% to € 499 m. There was a 10% increase to € 515 m in new domestic business as a result of the acquisition of a mortgage portfolio. Capital market business remains at high level The capital market business in 2004 was, as expected, unable to achieve the growth rate of the previous year, but at approximately € 6.6 bn is not far from the previous year's level (€7.0 bn). New business with foreign addresses flourished from 13% to 27%, Deutsche Hypo concentrating on European territorial units -selectively expanding its business activities in North America and Japan. In line with its risk-conscious strategy, in business with public authorities the bank accepted only those borrowers with at least "A" credit rating. Record result for issuing operations Deutsche Hypo can look back on an exceptionally successful issuing business in 2004. At €13 bn, the bank achieved the best result in its history (€10.4 bn the previous year). Deutsche Hypo took account of the increasing internationalisation of the refinancing business with its Debt Issuance Programme, launched in January 2004 and has since been very successful. With a volume of approximately € 6 bn this form of documentation has become an important pillar in the bank's refinancing business. The balance sheet total rose 8.6% to approximately €33.9 bn (€31.2 bn the previous year). Rating Top marks in Standard & Poor's and Moody's annual ratings confirmed the quality of Deutsche Hypo mortgage bonds (AAA-rating for our public mortgage bonds both by S & P and also by Moody's; Aaa-rating by Moody's for our mortgage bonds). Deutsche Hypo has an Aa3-rating by Moody's for uncovered long-term liabilities. Satisfactory income situation Both the bank's business segments slightly improved their profit contributions in 2004, allowing an increase in interest and commission income to € 100.7 m, (€99.2 m the previous year). The efficiency of the bank measured by the cost-income-ratio again showed improvement (2004: 30.3%, the previous year: 32.8%). Following a decrease in administrative expenses of 6.2% to €30.5 m and a 3.4% drop in risk provisioning amounting to €25.5 m, thereby taking account of all currently discernible risks, Deutsche Hypo achieved an operating result before tax of €47.8 m, an increase of 1.1% over the previous year. Profit for the year fell by 7.9% to €30.5 m as the result of positive one-off effects in the tax position of the previous year. Outlook 2005 has seen no significant change in the bleak economic conditions. Nevertheless the bank succeeded in achieving a level of new business in excess of the previous year's level by maintaining its cautious approach in the first two months of the current financial year. Thanks to the bank's solid operational foundation, the Board of Managing Directors of the Deutsche Hypo is confident that in 2005 we can obtain a result which will continue the positive growth of the bank. 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 |
