DGAP-News: IKB Deutsche Industriebank AG: Figures for the first half of the financial year 2015/16


DGAP-News: IKB Deutsche Industriebank AG / Key word(s): Half Year Results
IKB Deutsche Industriebank AG: Figures for the first half of the financial
year 2015/16

30.11.2015 / 17:30
The issuer is solely responsible for the content of this announcement.

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IKB Deutsche Industriebank: 
Figures for the first half of the financial year 2015/16

  - Positive consolidated net income 

  - CET 1 ratio increased further

  - Leverage ratio at high level

  - Administrative expenses reduced

[Düsseldorf, 30 November 2015] IKB Deutsche Industriebank AG generated
consolidated net income of EUR 23 million in the first six months of the
financial year 2015/16 (1 April to 30 September 2015). The CET 1 ratio
increased to 11.3% as at 30 September 2015. The leverage ratio amounted to
8.9%, while the liquidity coverage ratio was 335%.

The consolidated income statement for the first half of 2015/16 is as
follows:

Table: IKB consolidated income statement in accordance with the German
Commercial Code (HGB)
<pre>

                          1 Apr. 2015 to
                                           1 Apr. 2014 to 30 Sep.
in EUR million             30 Sep. 2015                      2014    Change
Net interest and lease              142                       131        10
income
Net fee and commission               14                        17        -2
income
Net trading income                    0                         2        -1
Administrative expenses            -143                      -154        11
Personnel expenses                  -90                       -88        -2
Other administrative                -53                       -65        12
expenses
Net other income                     -8                       117      -125
Net risk provisioning                14                       -24        38
Tax income/expenses                   4                       -16        20
Consolidated net income              23                        73       -50


</pre>

Some totals may be subject to discrepancies due to rounding differences.


Net interest and lease income in the Group amounted to EUR 142 million in
the period under review (first half of 2014/15: EUR 131 million). The
increase was largely due to lower refinancing costs. Despite intense
competition, the Group's new business volume increased by EUR 0.5 billion
year-on-year to EUR 1.8 billion in the first half of the financial year
2015/16. In its lending activity, IKB is maintaining its standards in
respect to appropriate conditions and acceptable risks.

The Group recorded net fee and commission income of EUR 14 million (EUR 17
million). This development was primarily attributable to the fact that,
unlike in the comparative prior-year period, structuring and syndication
income was increasingly reported in net interest income rather than in net
fee and commission income in the first half of the financial year 2015/16.

Administrative expenses in the Group declined to EUR 143 million in the
period under review (EUR 154 million). The prior-year figure included a
higher level of audit and consulting expenses for the ECB comprehensive
assessment. In addition, expenses for IT and project consulting were
reduced and deposit protection expenses decreased as against the previous
year.

Net other income fell to EUR -8 million (EUR 117 million). The main reason
for this development: The measurement and sale of long-term investments and
close-out payments in connection with the strategic early dissolution of
derivative transactions in the banking book resulted in reduced net income
of EUR 26 million (EUR 92 million).

Net risk provisioning improved to EUR +14 million compared with the first
half of the financial year 2014/15 (EUR -24 million). IKB sees the
development of credit risk as a sign of the extremely positive sentiment
among German companies at present.

Net tax income amounted to EUR 4 million in the period under review after
tax expenses of EUR 16 million in the same period of the previous year.

The Group's total assets amounted to EUR 20.7 billion at the reporting date
(31 March 2015: EUR 22.4 billion). The CET 1 ratio amounted to 11.3%
(10.9%), meaning that IKB exceeded the statutory minimum requirement (CRR)
of 4.5% for the CET 1 ratio. Applying the Basel III provisions in full
results in a "fully loaded" CET 1 ratio of 10.3% as at 30 September 2015
(10.0%).

Applying the transitional provisions for 2014, the leverage ratio of the
IKB Group in accordance with Article 429 CRR amounted to 8.9% as at 30
September 2015 (8.5%), thereby exceeding the frequently cited benchmark of
3.0%. The liquidity coverage ratio amounted to 335% as at 30 September 2015
(273%). A minimum requirement of 60% has been in place since 1 October
2015.

The possibility that future EBA/ECB standards and interpretations or other
supervisory actions could lead to a retrospective change in the regulatory
ratios cannot be ruled out.

Outlook

IKB generated positive earnings in the first six months of the current
financial year. On this basis, it expects to generate positive net income
after taxes and before additions to the fund for general banking risks
(section 340g HGB) for the financial year 2015/16 as a whole as planned.
This net income is expected to be slightly higher than in the financial
year 2014/15. Should profits be accumulated by IKB AG, IKB intends to
transfer them to the fund for general banking risks 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 mean 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
means 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 2015/16 can be found
in the 6-Month Report 2015/16 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

IKB Deutsche Industriebank AG supports medium-sized enterprises in Germany
and Europe with loans, risk management, capital market services and
advisory services.


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The issuer is solely responsible for the content of this announcement.

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   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:      Regulated Unofficial Market in Berlin, Dusseldorf,   
                Hanover, Stuttgart; Open Market (Entry Standard) in  
                Frankfurt                                            
 
 
   End of News    DGAP News Service  
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419589 30.11.2015