Deutsche Pfandbriefbank AG

Earnings Release • Jul 25, 2002

News Details

Ad-hoc | 25 July 2002 08:54

HVB Real Estate Bank english

Half-year result – HVB Real Estate Bank Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Half-year result – HVB Real Estate Bank Commercial real estate financing operations in the first half of 2002 have been overshadowed by persistent weak demand in the German market and the rising number of bankruptcies. Nor has HVB Real Estate Bank been spared by this general trend. At the same time, however, the Bank has succeeded in improving margins in lending operations and lowering personnel and other operating expenses. Net interest income fell to EUR171.5 million (- 8.6%). Personnel expense contracted 5.5% to EUR33.1 million. Other administrative expenses are down 4.1% to EUR15.1 million. Overall general administrative expenses rose 5.2% to EUR56.5 million only due to indispensable IT investments. After including the positive balance of other operating income and expenses of EUR2.2 million, operating profit before risk provision came to EUR117.1 million, working out to a decline of 13.0%. We have taken full account of the market’s failure to recover and in particular the decline in real estate prices in the eastern German states by increasing risk provision by EUR101.4 million to EUR180 million. This translates into operating losses after risk provision of EUR62.9 million. After reversing provisions from the fund for general bank risks in the amount of EUR70 million, the pre-tax result comes to EUR1.6 million. Neither a recovery of the economy nor a significant revival of the German real estate market is expected in the course of fiscal 2002. Against this background, it is questionable whether a dividend will be paid. Further development will hinge on continuing to bundle resources and consistently pursuing our new business strategy. (Note: All comparisons are with the corresponding pro rata figure for half of 2001) end of ad-hoc-announcement (c)DGAP 25.07.2002 ——————————————————————————– WKN: 801900; ISIN: DE0008019001; Index: Listed: Amtlicher Markt in München; Freiverkehr in Berlin, Düsseldorf, Frankfurt, Hamburg und Stuttgart 250854 Jul 02