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Press release, Hanover, 25 April 2008 Deutsche Hypo presents results for the first quarter of 2008 In the first three months of the current financial year, new business in the real-estate sector at Deutsche Hypo has developed as expected. In response to the continuing crisis on the financial markets and to corrections made to growth prognoses, the Bank concentrated on financing deals with even less leverage, within its target markets. This means that the deals concluded comply with the stringent requirements regarding the target risk profile. At 550 million, the volume of new business was 43% lower than in the same quarter of the previous year, which is due to the atypically high volume in the previous year. In the capital market sector, the Banks investment policy, which remains conservative, characterised the development of business, together with refinancing conditions, which remain difficult and continue to have a negative effect on the banking sector as a whole. At 546 million (previous year: 1,844 million), the volume of new business is lower than the previous year and reflects both these circumstances. With regard to the income situation, the Bank was able to continue the pleasing development of interest and commission surplus, where an increase of 20% was recorded. When it came to the risk result, the market distortions had the expected impact. In the partial result for the liquidity reserve, market value write-downs amounting to 13.3 million had to be implemented on the securities portfolio. However, the Bank does not expect there to be a long-term loss of value, as the portfolio principally consists of securities from high-quality issuers. The picture is much brighter when it comes to risk provisioning in the mortgage sector. Here, a positive balance of 2.5 million partially compensates for the negative impact of the securities portfolio. When combined, the two partial results give a risk result of 11.4 million (previous year: 5.7 million). The pre-tax profit amounted to 12.5 million, meaning that it was below the profit for the same period in the previous year (13.7 million). However, when you look at the complete picture, the figures show that Deutsche Hypo has a business model that is sustainable even in difficult market conditions. Outlook Given the general conditions on the capital markets, which have worsened further, and which witnessed a particular deterioration in March, the Management Board of Deutsche Hypo wishes to reserve judgement when it comes to prognoses for the course of the 2008 financial year as a whole. At the same time, the Banks aim remains to build on the previous year's results, although this will become increasingly difficult in the event of further friction on the capital markets. 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 |
