20 August 2015
BayernLB posts strong profit before taxes of
EUR 433 million in first half of 2015
•
Operating profit very solid despite EUR 147 million extraordinary
charge for bank levy and deposit guarantee scheme
•
Earnings in core business increased by 55 percent to EUR 550 million
•
Higher efficiency: cost/income ratio improves to 49.6 percent
•
Common Equity Tier 1 ratio (CET1 ratio) rises to 13.5 percent
Munich - The BayernLB Group posted profit before taxes of EUR 433 million in
the first half of 2015. The fall on the previous-year period (EUR 527 million)
was due to extraordinary charges totalling EUR 147 million for the first-time
bank levy and contribution to the deposit guarantee scheme. Excluding these
extraordinary charges, BayernLB's profit before taxes was higher by EUR 51
million or around 10 percent on the year-before period. Earnings in BayernLB's core business increased sharply by 55 percent to EUR 550 million. Progress was also made in improving efficiency: the cost/income ratio fell 2.3
percentage points to 49.6 percent.
"Our first-half figures illustrate the strength of BayernLB's customer business
and the success of our efficiency improvement measures. We have made clear
progress in realigning the Bank," said Johannes-Jörg Riegler, BayernLB's CEO.
Net interest income was stable at EUR 824 million (H1 2014: EUR 831 million)
in spite of persistently low interest rates. Net commission income amounted
to EUR 110 million. The figure of EUR 116 million for the year-before period
included an EUR 8 million contribution from BayernLB's subsidiary in Luxembourg which has since been sold.
Thanks to the good quality of its portfolio, BayernLB once again posted a gain
from risk provisions in the credit business. Although releases were less than
Corporate Center Communications & Press Press contact
Tel +49 (0)89 2171- 27176 Fax +49 (0)89 2171-21332 presse@bayernlb.de www.bayernlb.de
in the year-before period, a drop in additions to provisions led to an overall
Page 2 of 5
gain of EUR 13 million.
20 August 2015
Administrative expenses rose slightly year-on-year, increasing by 4.3 percent
to EUR 560 million. Although operating costs were lower, staff costs rose as a
result of the first-time consolidation of DKB Service GmbH which increased
headcount by more than 1,000. Expenses for court costs rose in connection
with the legal disputes with HETA.
Profit after taxes amounted to EUR 310 million. This was twice as high as the
figure of EUR 153 million in the year-before period which was pushed down
by BayernLB's stake in Hungarian bank MKB and expenses related to its sale
shortly afterwards.
Expenses for the bank levy and deposit guarantee scheme totalling EUR 147
million are based on BayernLB's own estimates, as the exact amounts due
were not available as at 30 June 2015. Of this amount, EUR 99 million represents BayernLB's estimated contribution to the restructuring fund under European rules (bank levy) and EUR 47 million is for the Savings Banks Finance
Group's deposit guarantee scheme. The expected expense for full-year 2015
was recognised in each case.
The BayernLB Group's capital base remains solid. The Common Equity Tier 1
ratio (CET1 ratio) rose to 13.5 percent (31 December 2014: 12.8 percent). Return on equity (RoE) was 7.6 percent in the first half of 2015 (H1 2014: 7.1
percent).
As at 30 June of this year, total assets amounted to EUR 224.5 billion, 3.3 percent lower than at the end of FY 2014.
Operating segments at a glance
Profit before taxes in the Corporates & Mittelstand segment was sharply
higher than in the year-before period. BayernLB posted an increase here to
EUR 175 million (H1 2014: EUR 94 million). The segment's results were stoked
by strong gains from the release of risk provisions amounting to EUR 52 million.
Corporate Center Communications & Press Presscontact
Tel +49 (0)89 2171- 27176 Fax +49 (0)89 2171-21332 presse@bayernlb.de www.bayernlb.de
The Real Estate & Savings Banks/Association segment posted profit before
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taxes of EUR 98 million after another solid business performance overall. Earn-
20 August 2015
ings in the year-before period (EUR 149 million) were dampened in part by
high releases of risk provisions.
Profit before taxes in the Financial Markets segment rose to EUR 149 million
(H1 2014: EUR 0 million). The increase was mainly due to price gains on securities and changes in fair value adjustments. Earnings from Markets products
sold by the customer-serving segments were reported under the segments
concerned, as usual. These earnings were also slightly up on the year-before
period despite subdued demand in the low interest rate environment.
The DKB success story continued in the first half of 2015. Profit before taxes at
the BayernLB subsidiary more than doubled, rising EUR 68 million to EUR 154
million. The rise in earnings resulted primarily from a sharp increase in net
interest income to EUR 387 million (H1 2014: EUR 299 million). DKB also increased its retail customer base to around 3.1 million, further cementing its
position as one of Germany's leading online banks.
Outlook for the full year
Based on its sound operating business, BayernLB forecasts it will post profit before taxes in the mid triple-digit million range provided the macroeconomic
situation does not change.
Additional details on the BayernLB Group's financial figures as at 30 June 2015 can be
found in the supplementary presentation for members of the press and in the Group Interim Report for the first half of 2015. Both documents can be downloaded at
www.bayernlb.de/presse.
Corporate Center Communications & Press Presscontact
Tel +49 (0)89 2171- 27176 Fax +49 (0)89 2171-21332 presse@bayernlb.de www.bayernlb.de
Page 4 of 5
20 August 2015
Business performance as at 30 June 2015 - Results of operations
EUR million
1 Jan – 30 June
2015
1 Jan – 30 June
2014
Change
in %
824
831
-0.8
13
45
-71.0
Net interest income after risk
provisions
837
876
-4.4
Net commission income
110
116
-5.3
-52
140
-
-5
-13
-63.8
207
-92
-
Administrative expenses
-560
-537
4.3
Expenses for the bank levy and deposit
guarantee scheme
-147
-2
>100.0
Other income and expenses
44
53
-17.5
Gains or losses on restructuring
-2
-12
-83.9
433
527
-17.9
-123
-64
93.2
310
463
-33.2
0
-311
-
310
153
>100.0
0
2
-
310
155
99.8
Net interest income
Risk provisions in the credit business
Gains or losses on fair value
measurement
Gains or losses on hedge accounting
Gains or losses on financial investments
Profit before taxes
Income taxes
Gains or losses on
continuing operations
Gains or losses on
discontinued operations
Profit after taxes
Profit attributable to non-controlling
interests
Consolidated profit
Rounding differences may occur in the tables.
Corporate Center Communications & Press Presscontact
Tel +49 (0)89 2171- 27176 Fax +49 (0)89 2171-21332 presse@bayernlb.de www.bayernlb.de
Page 5 of 5
20 August 2015
Balance sheet (IFRS)
EUR million
30 Jun 2015
Total assets
224,526
232,124
Change
in %
-3.3
Credit volume
179,310
182,584
-1.8
4,724
4,722
-
12,082
11,789
2.5
30 Jun 2015
31 Dec 2014
6,791
6,842
Change
in %
-0.7
Subordinated capital
Equity capital
31 Dec 2014
Employees
Number of employees
Corporate Center Communications & Press Presscontact
Tel +49 (0)89 2171- 27176 Fax +49 (0)89 2171-21332 presse@bayernlb.de www.bayernlb.de