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As a leading real estate bank in Germany, DZ HYP offers comprehensive financing solutions for corporate, private and public-sector customers.
DZ HYP publishes half-yearly financial report 2020
The outbreak of the COVID-19 pandemic has presented the world with challenges. The German economy suffered a marked slump as a result – also affecting the real estate sector. As a result, DZ HYP saw reduced demand for financings during the months from April to June: following a positive performance during the first quarter (€2.4 billion), new business volume of €3.9 billion for the first half of the year fell short of the same period of the previous year (€5.1 billion).
At the same time, the Bank maintained its successful, trusting cooperation with the German cooperative banks. DZ HYP was able to raise the volume of intermediated home loan financings, compared to the same quarter of the previous year. Likewise, the development of joint lending in commercial real estate finance showed a positive development: despite lower levels of new business overall, the Bank almost matched the good performance of the first half of 2019. In the business with public-sector clients, DZ HYP’s partner banks successfully brokered the vast majority of all new business – 76 per cent.
Despite the challenging situation, DZ HYP showed a solid commercial development during the period under review. Its financial performance reflects the Bank’s successful operating performance of recent years. Operating profit rose to just under €115 million (H1 2019: €99.9 million). Net interest income of €301.9 million exceeded the previous year’s figure of €263.6 million by €38.3 million. Given the persistent decline in interest rate levels, the increase in net interest income is largely attributable to increases in real estate finance and related interest margins. The net commission result of €-16.7 million was down €8.5 million on the comparable figure for the previous year (€-8.2 million).
Detailed information on DZ HYP’s development can be found in the half-yearly financial report 2020.