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Press release, Hanover, 17 March 2006 Deutsche Hypo successfully maintains its good position in 2005 The Supervisory Board of Deutsche Hypothekenbank (Actien-Gesellschaft), Hanover/Berlin, has approved the Bank’s 2005 Annual Accounts at yesterday’s balance sheet meeting and resolved to propose to the Annual General Meeting on 18 May 2006 that an unchanged dividend of € 11 per unit share be distributed. The 2005 financial year for Deutsche Hypo, which forms part of the ING Group, can be summed up as follows: • A 3.8% rise in net interest and commission income. • A 1.7% increase in the result from normal business activity. • A 7.2% improvement in net income for the year. • A slight increase in the cost/income ratio, up by one percentage point to 31.3%. Rise in new mortgage business The volume of new mortgage business improved by over 21% to some € 1.23 billion (previous year: € 1.01 billion). With regard to foreign financings, Deutsche Hypo recorded growth of a good 78% to € 891 million following a relatively weak 2004 (previous year: € 499 million), increasing foreign financings as a proportion of total loan commitments to in excess of 72% (previous year: 49.2%). Further internationalisation of capital market business As expected, new capital market business, accounting for some € 4.6 billion, was down on the excellent figure of € 6.6 billion for the previous year. Business with foreign borrowers was extended, raising the level of foreign business as a proportion of total new capital market business to over 46% (previous year: 27.3%). Refinancing strategy as successful as ever Total issues amounted to € 10.3 billion, 20% down on the previous year’s figure of € 13.0 billion, a fall that can be primarily attributed to the lower level of new business on the assets side. Generally speaking, demand for issues from issuers with good credit-ratings increased during the year under review, resulting in a gratifying level of demand for Deutsche Hypo issues throughout the year, particularly from international investors. Total assets, at some € 33.2 billion, were slightly down on the previous year's figure of € 33.9 billion. Improved income situation despite lower balance sheet The Bank’s two core areas of business made strong, stable contributions to the result, improving net interest and commission income by 3.8% to € 104.5 million. Despite a 7.2% rise in administrative expenses to € 32.7 million, the favourable cost/income ratio of 31.3% was only marginally higher than that of the previous year (30.3%). Risk provisioning, which covers all discernible risks, fell by 2% to € 25 million. The Bank’s pre-tax result rose by almost 2% to 48.6 million, whilst net income for the year, at € 32.8 million, showed a clear rise of more than 7%. Rating The annual reviews conducted by the rating agencies Standard & Poor’s and Moody’s confirmed the high quality of our Pfandbriefe with top ratings being awarded (both S&P and Moody's awarded our public Pfandbriefe an AAA rating, whilst Moody’s rated our mortgage Pfandbriefe as Aaa). With regard to uncovered long-term liabilities, Deutsche Hypo is rated as Aa3 by Moody’s. Ausblick The basic conditions are growing noticeably more favourable for the European commercial property markets and the Bank expects to be able to continue its positive trend with regard to new business. As far as capital market business is concerned, the market conditions are generally becoming more difficult. It is difficult to assess the impact, in terms of both volumes and profitability, of the interest rate hike already introduced by the ECB and, above all, of the further rate rises that are generally expected to be implemented in the future. Nevertheless, as things stand, the Board of Managing Directors once again expects to be able to achieve a satisfactory result overall. 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 |
