DZ HYP posts stable half-year results for 2019
10.09.2019
- New business in line with the good levels seen in the previous year
- Stable development of results of operations
- Operating profit increased
DZ HYP looks back on a successful first half-year 2019. In an environment characterised by low interest rates, tightened regulatory requirements and intense competition, the Bank originated new business of €5.1 billion, which was in line with the favourable levels of the previous year.
DZ HYP's financial performance reflects the successful operating performance in the Real Estate Finance business, but is affected as expected by the costs of ongoing merger work. At €263.6 million, net interest income remained slightly below the previous year's level (H1 2018: €266.2 million) – mainly reflecting a premium payment received in the previous year as part of an open market operation. The net commission result of €-8.2 million as at 30 June 2019 was a €7.8 improvement to the comparable figure for the previous year of €-16.0 million. Specifically, €15.9 million (H1 2018: €7.9 million) in commission income was generated from the lending business, whilst €23.5 million (H1 2018: €22.6 million) was paid for brokerage services from cooperative banks. At €134.8 million, administrative expenses as at 30 June 2019 were significantly below the previous year’s level for the same period (H1 2018: €158.1 million). A one-off effect on the bank levy relating to the merger was the main factor behind the lower figure.
The net result from risk provisioning (€-23.6 million; H1 2018: €-48.6 million) included a positive contribution from provisions for loan losses, and from the valuation result for securities held as liquidity reserve. At €99.9 million, operating profit was markedly higher year-on-year (H1 2018: €80.3 million).
Detailed information on DZ HYP’s development can be found in the half-yearly financial report 2019.