Show Submenu
|
Press release, Hanover, 26 October 2007 Deutsche Hypo grows new business in international commercial real estate financing During the third quarter of the current financial year, Deutsche Hypo has once again been able to record a clear increase in its international commercial real estate financing division. Compared with the same period of the previous year, new business was increased during the first nine months of 2007 by € 448 million to in excess of € 2.1 billion. Foreign transactions accounted for € 1.86 billion of the new loans, thereby constituting the greatest share. Domestic business accounted for € 252 million. The mortgage loan portfolio rose by € 364 million (+ 4%) to € 8.64 billion. As expected, new capital market business was down compared with the same period of last year, at € 3.4 billion (- 13.8%). The portfolio, however, was unchanged on the year-end figure, at € 24.8 billion. Impact of capital market turbulence on Bank's income position only moderate The global distortions on the financial market sparked off by the US subprime crisis have hit the banking sector particularly hard. However, Deutsche Hypo's business model has proven how robust it is, even in this difficult market phase, with the result that the impact on the Bank's income position has been moderate. The Bank's net interest and commission income rose by 2% to € 82.2 million (+ € 1.2 million), whilst the expected increase of a good 4% in administrative costs to € 26.8 million (+ € 1.1 million) had no major impact on the overall result, with the cost/income ratio practically unchanged on the half-year result at 32.6%. Looking at the Bank's risk result however, we were forced to take account of the market conditions described above and stepped up our provisioning with regard to the liquidity reserve in particular. Overall, € 21.3 million was allocated to our conservatively measured risk provisioning, which equates to an increase of € 2.7 million (+ 15%). The Bank's result from normal business activity was thus down 8% compared with the same period of the previous year, at € 35 million. Outlook: Looking to the remaining quarter of 2007, the Board of Managing Directors is hoping that the recent tangible easing of the market situation will continue and that there will be no further exogenous shocks. If this is the case, a result can still be achieved for the 2007 financial year as a whole that would only be slightly down on last year's performance. 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 |
