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Press release, Hanover, 10 August 2007 Deutsche Hypo presents half-year figures Deutsche Hypothekenbank (Actien-Gesellschaft) has today published its half-yearly financial report. Over the first six months of the current financial year, the Bank has been able to continue the positive development recorded in commercial international real estate financing. New loan commitments were up by almost 35% on the previous year, from 967 million to 1.3 billion. Foreign business, up by 546 million to in excess of 1.1 billion, made the most significant contribution to this growth. As a result, the mortgage portfolio grew by a gratifying 7.7% to some 8.7 billion. In light of the current crisis surrounding US mortgage lending to debtors with low credit ratings, known as the subprime market, Deutsche Hypo wishes to stress that its own real estate financing business in the USA as in all of the Bank's target markets is focused on commercial real estate financing with a low risk profile and professional market operators. Against this background and in view of the low level of MBS holdings, which are secured by US real estate and rated AA or better, the impact of this crisis on the Bank is very limited. New capital market business progressed as expected during the reporting period, amounting to 2.76 billion (previous year: 3.49 billion) in a market environment that was characterised by narrow spreads. The proportion of this new business relating to foreign operations continued to rise, accounting for 40%. With regard to issuing business, demand for Deutsche Hypo stocks was as high as ever. Total issues amounting to 3.7 billion were placed without any problems during the period under review. Of this total, 1.3 billion related to Pfandbrief products. At 2.2 billion, new capital market business was only slightly down on the previous year's figure of 2.3 billion. Renewed improvement in income situation The Banks income developed as follows over the first six months of the current financial year: Deutsche Hypos net interest and commission income improved by some 1.2 million to 54.4 million. Administrative expenses rose by a modest 0.9 million to 17.6 million. The cost/income ratio, at 32.4%, was lower than the 33.0% recorded at the 2006 year-end. Risk provisioning fell by 1.3 million to 11.6 million. The pre-tax result rose by a gratifying 7.4% to more than 26 million. Outlook: Given the current crisis on the US mortgage market, the possibility of further repercussions on other areas of the lending market and on the securities sector cannot be ruled out altogether for the time being. This means that a high level of uncertainty surrounds our business and income forecasts for the remainder of the financial year. Nevertheless, based on Deutsche Hypos good results for the first half-year and in view of the Bank's positioning, the Board of Managing Directors also expects a satisfactory result to be achieved for 2007 as a whole. 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 |
