IKB Deutsche Industriebank AG / Half Year Results/Change of Personnel
22.12.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
In the first six months of the financial year 2008/09 (1 April to 30
September 2008), the consolidated results of IKB Deutsche Industriebank
amounted to 250 million (H1 2007/08: 965 million).
The operating results in the two core segments of Corporate Clients and
Structured Finance were positive in the first half of 2008/09 and amount to
33 million ( 27 million) in total. Specifically, the Corporate Clients
segment generated an operating result of 29 million ( 17 million) and
Structured Finance one of 5 million ( 10 million).
The consolidated results are still being strongly influenced by the crisis
at the bank and the turbulence on the financial markets. As previously
announced, the measurement of the equity and liabilities side of the
balance sheet in the second quarter of 2008/09 (1 July to 30 September
2008) resulted in a strong valuation gain of 1.1 billion, whereby the
corresponding measurement losses in the first quarter of 2008/09 ( 0.4
billion) were more than offset. Portfolio investments led to a net loss of
79 million, which was taken to the income statement. Market value losses
on long-term investments and derivatives were included in the fair value
result and the net income from investment securities at a total of 248
million.
The income statement of IKB was as follows in the first half of 2008/09:
1 April 2008 - 30 September 2008( million); 1 April 2007 -
30 September 2007( million); Change(%)
Net interest income 202.5 200.0 1.3
Provision for possible loan losses 106.7 166.1 -35.8
Net interest income after provision for possible loan losses 95.8 33.9 >100.0
Net fee and commission income 24.3 34.4 -29.4
Net income from financial instruments at fair value 178.0 -1,959.4
Net income from investment securities -233.7 -1,044.1 77.6
Net income from investment accounted for using the equity method -8.1 0.7
General administrative expenses 175.2 183.1 -4.3
Personnel expenses 84.9 92.0 -7.7
Other administration expenses 90.3 91.1 -0.9
Net other operating income 405.8 -9.7
Result as of risk assumption - ; 2,238.1
Operating result 286.9 -889.2
Taxes 36.6 75.9
Net income for the year 250.3 -965.1
At 203 million, net interest income was up slightly by 1.3% as against
the same period of the previous year ( 200 million).
The provisions for possible loan losses are showing a clear decline at
107 million ( 166 million). This is essentially due to the fact that the
comparative figure for the previous year was relatively high due to the
particularly long adjusting period to the preparation date of 24 April
2008.
In total, net interest income (after provision for possible loan losses)
increased to 96 million ( 34 million) in the reporting period.
At 24 million, net commission income was 29% lower than in the same
period of the previous year ( 34 million). The 10 million reduction is
essentially due to the Corporate Clients, Structured Finance and Portfolio
Investments segments.
General administrative expenses were down by 4.3% to 175 million. While
personnel expenses declined by 7.7% to 85 million due mainly to the
headcount reduction, other administrative expenses were roughly stable
year-on-year at 90 million. In particular, the latter is due to the high
external costs still being incurred to manage the crisis and the
significant rise in premiums for deposit protection for the current and
previous year. The number of employees (FTEs) on 30 September 2008 was
1,758 (1,840).
After taking into account the tax expense of 37 million, consolidated
results amounted to 250 million ( 965 million). Earnings per share for
the first half of 2008/09 are 2.58 ( 10.98).
Balance sheet as of 30 September 2008
Total assets as of 30 September 2008 amounted to 45.6 billion, down 4.7
billion or 9.3% as against 31 March 2008. This decline was essentially due
to the reduction of financial instruments (including portfolio investments)
and other assets and, on the equity and liabilities side, the drop in
securitised liabilities. In addition, assets and liabilities held for
trading have been reported lower due to measurement changes.
As of 30 September 2008, the IKB Group had a Tier 1 capital ratio of 5.4%;
this figure rose to 9.6% as a result of the capital increase at the end of
October 2008.
Outlook
While the current crisis on the financial market is still ongoing, with
banks unable to provide refinancing without collateral at reasonable costs
and for sufficient amounts and the sale of balance sheet assets such as
real estate mortgages remaining extremely difficult, IKB must continue
being highly restrictive in its new business policies in individual
segments. While the 5 billion guarantees authorised by SoFFin (the
special financial market stabilisation fund) and the capital market issues
it allows ensure the liquidity of IKB, it does not allow for an increase in
new business volumes from the current low levels.
The conditions of the EU Commission are forcing a fundamental revision in
the business activities of IKB. Real estate business must be discontinued.
Total consolidated assets must be reduced to 33.5 million by 30 September
2011. IKB will therefore increasingly leverage its strong positioning as a
leading specialist German bank for mid-cap companies and institutional
investors, and the high levels of confidence it enjoys from its customers,
to offer services that will not affect its balance sheet, thereby ensuring
the profitability of IKB.
The full six-month report of IKB for 2008/09 will be available at
www.ikb.de/Investor Relations/Financial Reports from 15 January 2009.
Changes in the Supervisory Board
In line with the resolution of the General Meeting on 28 August 2008, the
Supervisory Board is being reduced to 15 members. Ms. Rita Röbel, Mr.
Dieter Ammer, Dr. Jens Baganz, Mr. Werner Möller, Mr. Roland Oetker, Mr.
Randolf Rodenstock and Mr. Jochen Schametat have resigned their offices. By
way of resolution of the Düsseldorf Local Court, Dr. Karsten von Köller was
appointed as a member of the Supervisory Board of IKB AG as of 16 December
2008.
Agreement with former members of the Board of Managing Directors
The bonus claims between IKB and the former members of the Board of
Managing Directors Dr. Volker Doberanzke and Dr. Markus Guthoff were
resolved in December 2008. Dr. Doberanzke and Dr. Guthoff repaid the
bonuses requested by the Bank (of 583 thousand and 600 thousand
respectively) voluntarily and without recognising any legal obligation in
the amounts of 494 thousand and 499 thousand respectively in October
and December 2008. The payments were made by mutual agreement. The
differences from the gross amounts represent the amount of the tax
disadvantages as bonuses paid out in 2007 were repaid in 2008. In addition,
the difference for Dr. Doberanzke also takes into account the fact that he
only acted as a member of the Board of Managing Directors of the bank for
ten months in the 2006/07 financial year.
The Board of Managing Directors
Düsseldorf, 22 December 2008
Dr. Jörg Chittka, Tel. +49 211 8221-4349, Dr. Annette Littmann, Tel. +49
211 8221-4745, Volker Rapp, Tel. +49 211 8221-3043; E-mail:
investor.relations@ikb.de
DGAP 22.12.2008
---------------------------------------------------------------------------
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
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Düsseldorf, Hamburg, München; Freiverkehr in Hannover,
Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-News: IKB: 6-month figures for 2008/09 as of 30 September 2008 Changes in the Supervisory Board
| Source: EQS Group AG