IKB Deutsche Industriebank AG / Quarter Results
29.04.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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IKB Deutsche Industriebank posted a loss for the first half of the
financial year 2007/08 (1 April to 30 September 2007) of - 1.0 billion.
The losses of portfolio investments led to a negative net income from
financial instruments at fair value of - 2.0 billion (first half of the
financial year 2006/07: 68 million) and negative net income from
investment securities of -1.0 billion ( 8 million). In contrast, the
positive result from the assumption of risks by the banking pool amounted
to 2.2 billion ( 0.0 million).
The key figures from the P&L account are as follows:
Net interest income 268 million ( 321 million)
Provisions for possible loan losses 166 million ( 139 million)
Net fee and commission income 34 million ( 27 million)
General administrative expenses 183 million ( 143 million)
Despite a half year loss of - 1.0 billion IKB confirms its forecasted
result for the entire financial year (FY) 2007/08 of - 0.2 billion: as of
30 September 2007, losses from obligations towards Havenrock have largely
been accounted for, while the additional support by KfW and the banking
pool, which was granted in November 2007, has not yet been taken into
account. Besides, revenues resulting from the valuation of liabilities,
mainly hybrid securities, have increased significantly since 30 September
2007. The favourable valuation effect of compensation out of future profits
(Besserungsabrede) of 0.35 billion, which is an element of KfWs capital
injection, has also affected the results. Overall, these effects
significantly outweigh the increased value adjustments of portfolio
investments required since 30 September 2007.
Core business also affected by crisis
In IKBs core business segments, Corporate Clients, Real Estate Clients and
Structured Finance, adjusting events as of today have been included in risk
provisioning. Thus, risk provisioning increased significantly in all
segments.
In the first six months of the financial year 2007/08, the Corporate
Clients volume of new business rose to 2.6 billion ( 2.1 billion). The
segment posted an operating loss of - 18 million ( 42 million), due to
negative valuation results of Private Equity activities and significantly
increased provisions for possible loan losses. Net interest income of the
operational business was on pre-year level.
In the segment Real Estate Clients new business volume increased to
0.7 billion ( 0.4 billion), due to European activities. However,
corresponding administrative expenses and provisions for possible loan
losses also increased. The operating result amounted to 3 million ( 12
million).
The segment Structured Finance posted a negative operating result of
- 10 million ( 47 million) due to a doubling in risk provisioning and
necessary valuation adjustments on First Loss Pieces of IKBs own
securitised credits. At 3.1 billion new business was down slightly
compared to the previous record year ( 3.4 billion).
SME business in total 2007/08 on pre-year level
The disbursements for the financial year 2007/08 (1 April 2007 to 31 March
2008) increased in the segment Corporate Clients to 4.7 billion ( 4.6
billion), even though IKB in recent months had reduced on the level of new
commitments. New disbursements in the Real Estate Clients segment increased
to 1.4 billion ( 1.3 billion). After the exceptionally strong results in
the Structured Finance segment in FY 2006/07 ( 5.3 billion), new
disbursements for FY 2007/08 went down to 3.8 billion due to market
conditions.
Strong interest from bidders for IKB
The sale of stakes of KfW Banking Group (45.5%) and Stiftung
Industrieforschung (10.7%) in IKB is proceeding according to plan. The data
room for national and international bidders, who had previously made
indicative offers, has been open since 18 March 2008. Bidders confirmed
their substantial interest in acquiring IKB during last weeks management
presentations. The bidders recognised the banks value drivers and in
particular IKBs focussed business model, the long-standing relationships
with mid-sized corporate clients ('Mittelstand'), the strong market
position and IKBs experienced staff. Further substantiated offers have to
be submitted by mid May 2008.
Financial Calendar updated
IKB will publish 9-month figures 2007/08 in May 2008 and preliminary
figures for the financial year 2007/08 in June 2008.
The Board of Managing Directors
Düsseldorf, 29 April 2008
Contact: Dr. Jörg Chittka, Phone +49 (0) 211 8221 4349, Dr. Annette
Littmann, Phone +49 (0)211 8221 4745, Email: investor.relations@ikb.de
DGAP 29.04.2008
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Language: English
Issuer: IKB Deutsche Industriebank AG
Wilhelm-Bötzkes-Straße 1
40474 Düsseldorf
Deutschland
Phone: +49 (0)211 8221-4511
Fax: +49 (0)211 8221-2511
E-mail: investor.relations@ikb.de
Internet: www.ikb.de
ISIN: DE0008063306
WKN: 806330
Indices: SDAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Düsseldorf, Hamburg, München; Freiverkehr in Hannover,
Stuttgart
End of News DGAP News-Service
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DGAP-News: IKB: 6-month figures 2007/08 strongly affected by crisis SME business in total 2007/08 on pre-year level Bidder interest strong
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