DGAP-News: IKB Deutsche Industriebank AG: Results for the 2012/13 financial year
ID: 274236
(firmenpresse) - DGAP-News: IKB Deutsche Industriebank AG / Key word(s): Final Results
IKB Deutsche Industriebank AG: Results for the 2012/13 financial year
28.06.2013 / 08:00
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IKB Deutsche Industriebank:
Results for the 2012/13 financial year
- Reporting in accordance with German Commercial Code (HGB)
- Consolidated net loss of EUR 143 million (2011/12: EUR 424 million)
- Tier 1 capital ratio of 9.6%
- SoFFin guarantees repaid early and in full
- Debt crisis and regulatory environment still significant risk factors
[Düsseldorf, 28 June 2013] As of the financial statements presented today
for the 2012/13 financial year for the Group and IKB AG - as previously
announced - the accounting of IKB Deutsche Industriebank will be
exclusively in accordance with the Handelsgesetzbuch (HGB - German
Commercial Code). The prior-year figures for the IKB Group were also
restated accordingly.
In the 2012/13 financial year (1 April 2012 to 31 March 2013), the IKB
Group generated a new business volume of EUR 3.0 billion (previous year:
EUR 3.3 billion) in an environment dominated by the ongoing European debt
crisis and major uncertainty. At EUR 143 million (previous year:
consolidated net loss of EUR 424 million), the consolidated net loss of IKB
was lower in the reporting period than in the same period of the previous
year.
The consolidated income statement for the 2012/13 financial year is as
follows:
Table: Income statement of IKB (Group, HGB)
1 Apr. 2012 to 31 1 Apr. 2011 to 31At EUR 210 million, net interest and lease income matched the previous
EUR million Mar. 2013 Mar. 2012 Change
Net interest and 210 211 -1
lease income
Net fee and 5 -59 64
commission income
Net trading results 1 0 1
Administrative -304 -302 -2
expenses
Personnel expenses -159 -164 5
Other administrative -145 -138 -7
expenses
Other comprehensive 21 -252 273
income
Net risk provisioning -71 -16 -55
Result from ordinary
business
activities -137 -416 279
Taxes -6 -8 2
Consolidated net loss -143 -424 281
year's level (EUR 211 million), even though the loan volume as at the end
of the year was lower than in the previous year. Net fee and commission
income was positive again for the first time in years at EUR 5 million,
after EUR -59 million the previous year. The major reason for the increase
in the reporting period was the EUR 69 million decline in
SoFFin guarantee commission to EUR 33 million (previous year: EUR 102
million). IKB had repaid the last SoFFin guarantees early at the end of
December 2012.
Administrative expenses rose by EUR 2 million to EUR 304 million. Personnel
expenses declined by EUR 5 million to EUR 159 million, particularly as a
result of the reduction in average head countby 66 full-time equivalents
(FTEs) to 1,478 FTEs in the Group. Other administrative expenses climbed by
EUR 7 million to EUR 145 million. In particular, this increase was due to
additional expenses for the implementation of regulatory requirements and
an EUR 8 million rise in expenses for the Deposit Protection Fund.
The Group's other comprehensive income grew by EUR 273 million to EUR 21
million. A key factor in this was contributions from the remeasurement and
disposal of long-term investments and derivatives. This resulted in net
income of EUR 59 million after EUR -262 million in the previous year. The
previous year's result was negatively affected by write-downs on Greek
bonds and first-to-default bonds relating to Greece in the amount of EUR
256 million.
Net risk provisioning increased by a volume of EUR 55 million from EUR -16
million to EUR -71 million. This reflects a declining level of reversals
and a generally more cautious assessment of the economic situation; IKB is
also anticipating risks in connection with the continued European debt
crisis for acquisition, project and real estate financing in France, Italy,
Spain and the UK. The current risk provisioning is still moderate by
multi-year comparison.
Tax expenses amounted to EUR 6 million in the reporting period after EUR 8
million in the previous year. The consolidated net loss improved by EUR 281
million to EUR 143 million.
Total assets declined by EUR 5.0 billion in the reporting period to EUR
27.6 billion on the reporting date. The tier I capital ratio of the IKB
Group was 9.6% as at 31 March 2013 (31 March 2012: 9.4%), while the overall
capital ratio was 13.8% (13.0%).
Results of IKB AG and loss participation of hybrid securities
The 2012/13 net loss for IKB AG amounted to EUR 162 million (previous year:
net loss of EUR 255 million). The loss participation of the profit
participation certificates was calculated on the basis of IKB AG's results
for the year.
The following financial instruments participate in this loss by way of
deferral of interest/distributions: DE0002731197, DE0002731429,
DE0002731569, DE000A0GF758, DE0007490724, DE000A0AMCG6, DE0008592759,
XS0194701487.
The 2012/13 loss participation by way of reduced repayment affects the
profit participation certificates DE0002731429 and DE0002731569, and is
determined by the adjusted gross accumulated loss, which amounted to EUR
140 million after the reversal of other revenue reserves of EUR 22 million.
Based on this, the profit participation certificates participated in the
loss in the amount of EUR 4 million in the 2012/13 financial year.
Profit participation certificates of IKB AG
The table with the loss participation of profit participation certificates
is available at https://www.ikb.de/en/press/news/.
Silent partnership interests in the commercial enterprise (Handelsgewerbe)
of IKB AG, repackaged by way of securities issued by Capital Raising GmbH
and Hybrid Raising GmbH
The table with the loss participation of silent partnership interests is
available at https://www.ikb.de/en/press/news/.
Under certain circumstances set out in the terms and conditions of the
profit participation certificates and the silent partnership agreements,
the reduced repayment claims of the profit participation certificates and
the carrying amounts of the silent partnership interests can be replenished
in future periods. If such a claim were to arise in a financial year, this
would reduce the distributable profit for the financial year in question.
In addition, under certain conditions regulated in the terms and conditions
of issue, bearers of profit participation certificates can be entitled to
subsequent payment of deferred interest in future periods, which would then
also reduce the distributable profit for the financial year in question. By
contrast, the deferred interest is cancelled for the other securities named
here.
Outlook
The IKB Group's extensive restructuring measures have essentially been
implemented, and the fundamental changes to the business model have been
made. The debt crisis, thedim economic situation in the reporting period
and the known regulatory restrictions mean that IKB will generate a
positive result from its business model only at a later time.
With profitable new lending business, net interest income will stabilise in
the medium term and provisions for possible loan losses will remain steady.
The future earnings structure will feature a rising share of commission
income from advisory, derivatives and capital market business and from
assets under management. Total assets will continue to decline.
Administrative expenses in the Group will be reduced by the lower
administrative expenses and the headcount reduction. This will be made
possible by efficiency enhancements, particularly with regard to the
fulfilment of regulatory requirements and reductions in Group complexity.
There is still some uncertainty concerning the negative consequences that
could result from the ongoing and, as yet, unfinalised regulation
programmes and the necessary adjustments.
In order to limit its refinancing costs and ensure its liquidity in future
as well, IKB will continue to diversify its refinancing structure. This
will focus on deposit business with corporate and retail clients and on
issuing bearer bonds. In addition, IKB will actively utilise government
development bank programmes for its customers and continue to carry out
secured financing.
Given the current income from the reversal of derivatives and the sale of
securities, IKB is assuming a positive conclusion of the first half of
2013/14 (1 April 2013 to 30 September 2013). If the positive trends on the
capital markets are essentially confirmed, the Board of Managing Directors
assumes that, overall, positive operating results will be generated from
earnings in operating business and measurement gains from financial
instruments that - not least in light of the tougher Basel III capital
requirements - can be used to strengthen tier 1 capital. Servicing the
compensation agreements of a total amount of EUR 1,151.5 million and the
value recovery rights of the hybrid investors means that, even if IKB
generates an operating profit, it will probably not report any, or only
minimal, net profit for the forecast period and a long time to come.
Further details on developments in the 2012/13 financial year can be found
in the 2012/13 annual report 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;
Frankfurt in Open Market (Entry Standard)
End of News DGAP News-Service
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