DGAP-News: IKB Deutsche Industriebank AG / Key word(s): Half Year Results IKB Deutsche Industriebank AG: Half-year figures for the 2014/15 financial year 28.11.2014 / 08:00 --------------------------------------------------------------------- IKB Deutsche Industriebank: Half-year figures for the 2014/15 financial year - Consolidated net income: EUR 73 million - Tier 1 capital ratio (CET 1) of the IKB Group: 11.4% - Leverage ratio: 8.2% [Düsseldorf, 28 November 2014] IKB Deutsche Industriebank AG generated consolidated net income of EUR 73 million in the first six months of the 2014/15 financial year (1 April to 30 September 2014) and further increased the tier 1 capital ratio. The leverage ratio was 8.2%, the liquidity coverage ratio 339%. The consolidated income statement for the first half of the 2014/15 financial year is as follows: Table: Income statement of IKB (Group, HGB) <pre> 1 Apr. 2014 to 30 Sept. 1 Apr. 2013 to 30 Sept. in EUR million 2014 2013 Change Net interest and lease income 131 140 -9 Net fee and commission income 17 14 2 Net trading results 2 5 -3 Administrative expenses -154 -139 -14 Personnel expenses -88 -79 -9 Other administrative expenses -65 -61 -5 Net other income 117 -63* 180 Net risk provisioning -24 -59 35 Tax income/expense -16 110 -126 Consolidated net income 73 8* 65 </pre> Some totals may be subject to discrepancies due to rounding differences. * incl. EUR 128 million addition to section 340g HGB reserves The Group's net interest and lease income decreased by EUR 9 million in the period under review to EUR 131 million (previous year: EUR 140 million). In an environment of further restrained credit demand on the market and selective lending by IKB, the Group's new business volume in the first half of the financial year 2014/15 was up slightly year-on-year at EUR 1.3 billion. The Group's net fee and commission income outperformed the prior-year figure of EUR 14 million at EUR 17 million. Administrative expenses amounted to EUR 154 million in the period under review after EUR 139 million in the previous year. The main factors influencing this were the rise in personnel expenses as a result of stepping up sales activities and the expenses for participation in the ECB's comprehensive assessment . Net other income increased by EUR 180 million from EUR -63 million to EUR 117 million. In the same period of the previous year, EUR 128 million was added to the fund for general banking risk in accordance with section 340g HGB and recognised as an expense in net other income. The measurement and sale of long-term investments resulted in current net income of EUR 100 million after net income of EUR 61 million in the previous year. Net risk provisioning was down by EUR 35 million compared to the first half of the 2013/14 financial year at EUR 24 million. Tax expenses amounted to EUR 16 million in the period under review after tax income of EUR 110 million in the same period of the previous year. Consolidated net income amounted to EUR 73 million. There was no allocation to the fund for general banking risk. In the same period of the previous year, consolidated net income amounted to EUR 8 million after an allocation to the fund for general banking risk of EUR 128 million. The Group's total assets declined by EUR 0.7 billion as against 31 March 2014 and amounted to EUR 24.0 billion on 30 September 2014. As at 30 September 2014 the CET 1 ratio - including the recognition of interim Group profits by 30 June 2014 by the regulatory authorities - was 11.4% for the IKB Group. With the Basel 3 provisions applied in full ("fully loaded"), the CET 1 ratio was 9.7% as at 30 September 2014. As against 31 December 2013 - the relevant date of the ECB's comprehensive assessment - common equity tier 1 capital was increased by more than EUR 190 million. IKB had successfully passed the comprehensive assessment even without this additional tier 1 capital. Applying the transitional provisions for 2014, the leverage ratio of the IKB Group in accordance with Article 429 CRR amounted to 8.2% as at 30 September 2014, thereby exceeding the often quoted benchmark of 3.0%. The liquidity coverage ratio was 339% as at 30 September 2014, while the minimum specification to be complied with from 1 October 2015 is 60%. The possibility that future EBA/ECB standards and interpretations or other regulatory activity will lead to a retrospective change in regulatory figures cannot be ruled out. Outlook IKB is forecasting positive earnings after taxes and before the allocation to the fund for general banking risk (section 340g HGB) for the 2014/15 financial year as a whole. This result will be higher than expected at the start of the 2014/15 financial year but well below the high figure for the previous year. Should profits be accumulated by IKB AG, IKB intends to transfer them to the fund for general banking risk in accordance with section 340g HGB as at the end of the financial year. 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 IKB AG will probably not report any, or only minimal, profit for a long time to come, even if results are positive. In addition, to the extent that net income can be reported in future, the reduction of net accumulated losses and the backpayment of bank levies will mean that it will not be possible to distribute a dividend to the shareholders of IKB AG. Further details on developments in the first half of 2014/15 can be found in the 6-month report for 2014/15 at https://www.ikb.de/en/investor-relations/financial-reports/. Contact: Dr. Jörg Chittka, tel.: +49 211 8221-4349; Armin Baltzer, tel.: +49 211 8221-6236, e-mail: presse@ikb.de --------------------------------------------------------------------- 28.11.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: IKB Deutsche Industriebank AG Wilhelm-Bötzkes-StraÃe 1 40474 Düsseldorf Germany 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: Freiverkehr in Berlin, Düsseldorf, Hannover, Stuttgart; Frankfurt in Open Market (Entry Standard) End of News DGAP News-Service --------------------------------------------------------------------- 300303 28.11.2014
DGAP-News: IKB Deutsche Industriebank AG: Half-year figures for the 2014/15 financial year
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