Press archive
Press release, Hanover, 10 August 2006

 New shareholder structure for Deutsche Hypo
Two of the most renowned and most traditional private banks in Germany, BHF-BANK AG and M. M. Warburg & CO, as well as the two significant German investors, Peter Döhle Schiffahrts-KG and Josef H. Boquoi Familienstiftung, have taken over the shares of the previous majority shareholder, ING Bank Deutschland AG. The block of shares acquired is distributed as follows:

BHF-BANK Aktiengesellschaft 25,001 %
M.M.Warburg & CO Gruppe KGaA 25,001 %
Peter Döhle Schiffahrts-KG 25,001 %
Josef H. Boquoi Familienstiftung 8,750 %

For Deutsche Hypo, this means appearing on the market independent of any group for the first time in its 134-year history.

The board of directors of Deutsche Hypo sees this change as being very positive, as the commitment of well-known investors confirms that Deutsche Hypo is on a successful course.

Deutsche Hypo has firmly established itself as a player in commercial real estate financing – nationally and internationally. The issue of Pfandbriefs was and will remain in future an integral component of the Bank’s refinancing strategy. At the same time, securitisation transactions will gain increasing importance in the business model.

The continued earnings of Deutsche Hypo will, on the basis of many years of conservative business policy, continue in future to provide shareholders with a suitable performance for the level of risk.

The new shareholder structure opens up new business opportunities. Together with the healthy cost structure, this forms a good basis for Deutsche Hypo to continue to maintain its successful position in the market.

This development is also demonstrated by the half-yearly results:

Development of new business significantly up on the previous year’s level
Deutsche Hypo was able to make significant progress in both of its businesses:

• With new mortgage loan commitments, the Bank was able to almost triple the acquired volume in comparison to the same period of the previous year and obtained new business of around € 967 million. Significant progress was made both in the Bank’s national (€ 368 million) and foreign (€ 598 million) target markets.
• New capital market business, amounting to € 3.5 billion, also recorded a much better result than at the end of the first six months of the previous year, up by a good 14%. At the same time, the share of international assets continued to increase.
• The Bank’s total issue volume came to around € 5.9 billion. This included the new issue of a mortgage Pfandbrief in the jumbo format (€1 billion) with a term of ten years. In addition, the Bank reacted by increasing outstanding jumbo Pfandbriefs at the request of the market and investors.

Bank’s satisfactory income situation
The Bank’s continued stable income situation, which when looking at the relevant figures is slightly up on the same period of the previous year, was marked by the following development:

• The net interest and commission income was € 53.2 million at the end of the first half of the year and was therefore up by 2.7 % on the previous year (€ 51.8 million).
• With regard to administrative expenses of € 16.7 million, the growth rate of 3.1 % in the reporting period was down on the previous year (7.3 %).
• The Bank’s cost-income ratio was unchanged at 31.3 %.
• € 12.9 million (+4 %) was allocated to risk provisioning.
• The result from normal business activity, at € 24.3 million, was at the previous year’s level.

Outlook
Based upon business to date and particularly against the background of the new shareholder structure the Bank is again expecting satisfactory results overall for the 2006 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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