DGAP-News: IKB Deutsche Industriebank AG: Half-year figures for the 2014/15 financial year


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-Straße 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