DGAP-News: IKB Deutsche Industriebank AG: Half-yearly figures for the financial year 2012/13
ID: 203149
(firmenpresse) - DGAP-News: IKB Deutsche Industriebank AG / Key word(s): Half Year
Results
IKB Deutsche Industriebank AG: Half-yearly figures for the financial
year 2012/13
14.11.2012 / 08:01
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IKB Deutsche Industriebank:
Half-yearly figures for the financial year 2012/13
- Consolidated net loss of EUR 78 million (H1 2011/12: EUR 312 million)
- New lending business satisfactory
- Tier I ratio 9.4%
- SoFFin guarantee framework reduced to EUR 750 million
- Financial reporting in accordance with HGB in future
- Sovereign debt crisis and Basel III remain significant risk factors
[Düsseldorf, 14 November 2012] In the first half of the financial year
2012/13 (1 April to 30 September 2012), the consolidated net loss of IKB
Deutsche Industriebank fell to EUR 78 million as against EUR 312 million in
the same period of the previous year.
The consolidated income statement for the first half of 2012/13 is as
follows:
Table: IKB income statement
in EUR million 1 Apr. 2012 1 Apr. 2011 to ChangeSome totals may be subject to discrepancies due to rounding differences.
to 30 Sep. 30 Sep. 2011*
2012
Net interest income 58.0 79.8 -21.8
Provisions for possible loan losses 11.9 -26.4 38.3
Net interest income (after
provisions for possible loan
losses) 46.1 106.2 -60.1
Net fee and commission income -12.1 -30.8 18.7
Net income from financial
instruments at fair value -11.4 -272.6 261.2
Net income from investment
securities 29.1 -9.7 38.8
Net income from investment
securities accounted for using the
equity method 0.7 1.3 -0.6
Administrative expenses 145.9 148.2 -2.3
Personnel expenses 77.6 80.5 -2.9
Other administrative expenses 68.3 67.7 0.6
Net other operating income 24.3 42.0 -17.7
Operating result -69.2 -311.8 242.6
Tax expense 8.5 0.2 8.3
Consolidated net loss -77.7 -312.0 234.3
* Prior-year figures restated (see notes to the 6-Month Report 2012/13 on
changes in accordance with IAS 8)
Net interest income declined by EUR 22 million year-on-year to EUR 58
million as a result of the low interest rates due to the crisis, the
reduction in holdings as a result of the EU conditions up until autumn 2011
and the repayment of SoFFin-guaranteed bonds.
Provisions for possible loan losses amounted to EUR 12 million. In the
previous year, higher reversals of specific valuation allowances andpartial reversals of portfolio valuation allowances in particular resulted
in income of EUR 26 million.
Net fee and commission income improved by EUR 19 million to EUR -12 million
largely as a result of the early repayment and maturity of
SoFFin-guaranteed bonds (previous year: EUR -31 million).
Net income from financial instruments at fair value amounted to EUR -11
million, up EUR 261 million on the previous year. While the prior-year
figure was impacted by factors including substantial remeasurement losses
on bonds relating to Greece, the figure for the period under review was
attributable to the following factors: (1) Measures implemented by the ECB
with a view to building confidence have led to a certain dissipation of the
tension affecting the financial markets. The resulting remeasurement gains
on the assets recognised on the face of the balance sheet totalled EUR 113
million. (2) Remeasurement losses on IKB's obligations resulted from the
lower level of market interest rates on the whole and the narrowing of
IKB's spreads.
Net income from investment securities increased by EUR 39 million
year-on-year to EUR 29 million, largely as a result of gains on the
disposal of portfolio investments and other non-current assets.
Administrative expenses amounted to EUR 146 million, down EUR 2 million on
the previous year. This underlines the success of the ongoing cost
reduction measures, which has been achieved despite the significant cost of
fulfilling regulatory requirements. Personnel expenses declined by almost
EUR 3 million to EUR 78 million; this was due in particular to the
reduction in the number of employees by 69 to 1,483. Other administrative
expenses remained essentially unchanged at EUR 68 million.
Net other operating income declined by EUR 18 million year-on-year to EUR
24 million.
At EUR -69 million, the operating result improved by EUR 243 million
compared with the same period of the previous year. Tax expense amounted to
EUR 9 million in the period under review (previous year: EUR 0.2 million)
and primarily related to deferred taxes. The consolidated net loss amounted
to EUR 78 million after EUR 312 million in the previous year.
Total assets amounted to EUR 31.1 billion as at 30 September 2012, down on
the figure as at 31 March 2012 (EUR 31.6 billion). The tier I ratio of the
IKB Group based on HGB figures was 9.4% on 30 September 2012 (31 March
2012: 9.4%), while the overall capital ratio amounted to 13.5% (31 March
2012: 13.0%).
Outlook
For a number of years, fair value fluctuations and extraordinary
IFRS-related factors have led to a high volatility in IKB's results. In
future, IKB will report exclusively in accordance with the German
Commercial Code (HGB). This transition has been made possible by the fact
that all of IKB's securities have now changed stock exchange segment from
the Regulated Market to the quality segments of the unregulated market
(Freiverkehr). The transition will simplify processes and reduce costs
without materially affecting transparency for shareholders and investors.
In addition, administrative expenses will be further reduced through
efficiency improvements, particularly in terms of the fulfilment of
regulatory requirements, the reduction of Group complexity, and headcount
reductions.
According to planning, liquidity is ensured with a sufficient buffer. The
SoFFin guarantee framework currently amounts to EUR 750 million of the
original volume of EUR 10.0 billion. IKB is planning to return the
remaining SoFFin guarantees ahead of schedule. This could lead to further
cost reductions - to date, fees of EUR 340 million have been paid to SoFFin
- as well as lifting the conditions imposed in connection with the SoFFin
guarantee framework, such as a minimum tier I ratio of 8%, and the
prohibition on the repurchase of liabilities imposed by the EU. The
European Commission informed IKB of the latter fact recently and confirmed
that IKB had met the obligations arising from its ruling dated 21 October
2008 with the exception of two deviations due to legal reasons.
IKB believesthere are good prospects for an expansion of its activities in
the areas of advisory, capital market and credit products. There has
already been an improvement in margins in the lending business and growth
in the number of advisory and capital market clients. However, the
uncertainty resulting from the economic and regulatory environment remains
high and, together with the dramatically changing parameters in the banking
industry at present, is delaying the achievement of sustainable
profitability.
The volume of new lending business amounted to EUR 1.5 billion in the year
under review (previous year: EUR 1.6 billion).
The ECB has helped to calm the markets over recent weeks. However, the
European debt crisis means that the outlook for the euro zone and the
global economy remains subject to a high degree of uncertainty. In Germany,
there are numerous signs that macroeconomic expansion is slowing as the end
of the year approaches. The complex regulatory environment is also causing
significant uncertainty. The preparations for the implementation of Basel
III - including the highly comprehensive regulations that will accompany
Basel III temporarily or functionally - are giving rise to high costs and
complex questions of management. Many statutory provisions have not yet
been finalised or are still to be specified or implemented by the European
Banking Authority or the national banking authorities.
The Board of Managing Directors is maintaining its target of generating an
operating profit in the medium term, thereby creating scope for the further
strengthening of its tier I capital. Servicing the compensation agreements
in the total amount of EUR 1,151.5 million and the value recovery rights of
the hybrid investors mean that IKB will probably not report any, or only
minimal, net profit for several financial years to come even if its
operating activities are profitable.
Further details on developments in the first half of 2012/13 can be found
in the 6-Month Report 2012/13 at
https://www.ikb.de/en/investor-relations/finanzberichte/.
Contact:
Dr. Jörg Chittka, telephone: +49 211 8221-4349; Armin Baltzer, telephone:
+49 211 8221-6236, fax: +49 211 8221-6336, e-mail: presse(at)ikb.de
End of Corporate News
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Language: English
Company: IKB Deutsche Industriebank AG
Wilhelm-Bötzkes-Straße 1
40474 Düsseldorf
Germany
Phone: +49 (0)211 8221-4511
Fax: +49 (0)211 8221-2511
E-mail: investor.relations(at)ikb.de
Internet: www.ikb.de
ISIN: DE0008063306
WKN: 806330
Listed: Freiverkehr in Berlin, Düsseldorf, Hannover, Stuttgart;
Entry Standard in Frankfurt
End of News DGAP News-Service
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193048 14.11.2012
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