IKB Deutsche Industriebank AG / Quarter Results/Interim Report
27.05.2008
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 consolidated net loss for the first
nine months of the financial year 2007/08 (1 April to 31 December 2007) of
roughly -1.0 billion (versus 142 million surplus for 1 April to 31
December 2006). Losses on portfolio investments led to a negative net
income from financial instruments at fair value of nearly -2.0 billion
( 88 million) and negative net income from investment securities of more
than -1.0 billion ( 7 million). In contrast, the positive result from
the assumption of risks by the banking pool amounted to 2.2 billion (
0.0 million).
Additional key financial data from the income statement are summarised as
follows:
- Net interest income 410 million ( 492 million)
- Provisions for possible loan losses 207 million ( 192 million)
- Net fee and commission income 44 million ( 45 million)
- Administrative expenses 271 million ( 222 million)
IKB closed out the third quarter of FY 2007/08 (1 October to 31 December
2007) in a balanced position, with net income for the period of 10
million. A positive result of 32 million from operating business and
109 million in fair-value gains on liabilities were offset by a further
70 million of losses on portfolios and financial instruments as well as
tax expense of 61 million.
Outlook confirmed
For the full financial year 2007/08, IKB still forecasts a loss of -0.2
billion. The positive contributions to results in the wake of a loss of
-1.0 billion for the 9-month result of FY 2007/08 are attributable
particularly to the following effects, which will not have an impact until
the fourth quarter of FY 2007/08:
- Accounting a further risk shield for Havenrock
- Further revenues resulting from the valuation of liabilities,
especially of hybrid capital instruments
- Positive effect of roughly 350 million resulting from the valuation
of debtor warrants outcoming from the KfW capital injection
Overall, these positive effects noticeably outweigh the necessary value
adjustments on portfolio investments carried out as at 31 December.
Core business holds its ground
In its core business, IKB succeeded in firmly holding its ground with its
customers. All three segments reported a positive operating result in the
third quarter of FY 2007/08 (1 October to 31 December 2007), after
extraordinary effects (adjusting events for risk provisioning and valuation
losses) stressed the operating results in the first half of FY 2007/08.
In the Corporate Clients segment, new business volume increased to 3.9
billion (previous year: 3.5 billion). This segment realised operating
results of 11 million ( 22 million) in the third quarter and -7
million ( 64 million) during first nine months of FY 2007/08. The result
was determined by negative valuation effects in the private equity business
in the first half of the year, in addition to increased risk provisioning.
The Real Estate Clients segment was able to record a significant boost in
new business volume to 1.2 billion (previous year: 0.7 billion) in the
reporting period thanks to European business activities. The operating
result reached just a marginal positive figure of 0.2 million ( 8
million) in the third quarter and amounted to 3 million (previous year:
20 million) in the first nine months of FY 2007/08.
The Structured Finance segment posted operating results of 6 million (
21 million) in the third quarter and -4 million ( 68 million) in the
first nine months of FY 2007/08. The result was attributable to value
adjustments for first-loss pieces from the securitisation of IKBs own
loans already accounted for in the balance sheet in the first half of FY
2007/08, in addition to increased provisions for possible loan losses. New
business volume of 3.4 billion reflected a decline versus the previous
record years level of 4.8 billion.
In the entire financial year 2007/08 (1 April 2007 to 31 March 2008), new
disbursements amounted to 4.7 billion (previous year: 4.6 billion) in
the Corporate Clients segment, 1.4 billion ( 1.3 billion) in the Real
Estate Clients segment and 3.8 billion ( 5.3 billion) in the Structured
Finance segment.
Sale process proceeding according to plan
The sale of stakes of KfW Banking Group (45.5%) and Stiftung
Industrieforschung (10.7%) in IKB is proceeding according to plan. In May,
IKB held discussions with nine bidders, especially with their management
and groups of experts. Meanwhile, KfW has received a series of interesting,
substantiated offers and intends to short list the number of bidders and
thereafter start decisive negotiating with due-diligence.
IKBs complete 9-month report 2007/08 is available at
www.ikb.de/Investor Relations/Financial
Reports
The Board of Managing Directors
Düsseldorf, 27 May 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 27.05.2008
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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: IKBs 9-month results for financial year 2007/08: Significant loss due to crisis outlook confirmed core business holds its ground
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