Press release, Hanover, 12 August 2005
Deutsche Hypo present half-yearly figures
Now that the first six months of the current financial year have passed and despite the weak overall economic situation, the Deutsche Hypothekenbank (Actien-Gesellschaft), which is a member of the ING Group, is still satisfied with the business’s performance to date.
Development of new business more modest than in same period of the previous year
The bank’s cautious assessment of the market in the first half of the 2005 financial year led to the following results in its new mortgage loan business:
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The volume of new mortgage loan commitments totalled € 341 million (previous year: € 360 million excluding the purchase of a portfolio totalling € 244 million) |
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The proportion of foreign business rose to around 64% (1st half of 2004: just under 40%) |
New capital market business developed in line with expectations, totalling € 3.0 billion, and was therefore slightly more modest than the same period in the previous year (€ 4.3 billion), The business displayed the following characteristics:
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The volume of stocks was maintained, thanks to high-quality new business. |
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The proportion of our total issue volume of € 5.7 billion that was made up of structured products came to 33%, whereby the Euro Medium Term Note programme that was introduced at the beginning of the previous year has now achieved a high degree of market acceptance allowing a volume of more than € 1 billion to be issued during the first half of the year. |
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The Jumbo Pfandbrief continues to form an important pillar of the Bank’s refinancing strategy. The new, 6-year public Jumbo Pfandbrief, issued in February to a volume of € 1 billion, met with in high demand among investors and was increased by a further € 250 million in June. |
Income on a par with the previous year’s level
Despite the low level of new business, the Bank’s profits are at the same level as the previous year.
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Net interest and commission income was € 51.8 million at the end of the first half of the year, down by only 0.4% on the previous year (€ 52.0 million). |
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Administrative expenses continued to be in line with our expectations, rising by 7.3% to € 16.2 million. |
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The Bank’s cost-income ratio lies at 31.3% (previous year’s figure: 30.3 %). |
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€ 12.4 million was allocated to risk provisioning (€ -1.7 million). |
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The result from normal business activity, at € 24.3 million, almost matched the satisfactory figure of € 24.7 million that was achieved in the previous year. |
The future
Based upon business to date, we are expecting satisfactory results overall for the 2005 financial 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
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