Helaba: Good Start in 2014
27 May, 2014, 08:23 BST
FRANKFURT AM MAIN, Germany, May 27, 2014 /PRNewswire/ --
- Quarterly results, as expected, slightly below previous year
- Further growth in customer business and in net interest income
- CET-1-Capital ratio at the end of March, 12.4 percent; total capital ratio 17.2 percent
- Cross-reference: Pictures are available at http://ots.de/wwmhn -
In the financial year 2014, Helaba for the first time presents its accounts in line with the new consolidation requirements of IFRS 10. In principle, the resulting changes are to be applied retrospectively and therefore slightly affect the comparative figures of 2013.
In the first quarter of 2014, Helaba Landesbank Hessen-Thüringen maintained its positive earnings trend and further expanded its position in customer business, despite an intensely competitive environment. Group earnings of EUR150m, before tax, are below the level of the previous year (EUR170m) as expected. After tax, group earnings amounted to EUR102m, compared with EUR114m in the same period of the year before.
Net interest income rose by EUR34m to EUR317m due to considerably higher customer contributions. This results from a higher volume of lending to customers and the profitability of new business. Risk provisioning in lending operations, at EUR53m, is at the level of the year before. Net commission interest at EUR75m is stable at the high level of the previous year and is mainly influenced by cash management/payment transactions, asset management and the securities and custodian business. The trading income, at EUR54m, is above the planned target for the period, but only about half of the extraordinarily high quarter results of the previous year (EUR119m). In that year, the financial markets were affected by considerably positive credit-spread developments. The result from hedge-derivatives and financial investments rose from a previously negative position by EUR24m to EUR19m. The other operating result amounts to EUR42m (previous year: EUR52m). General administrative expenses at EUR304m remained almost constant. Slightly higher personnel expenses are largely offset by reduced material expenses.
The balance sheet total of the Helaba Group was down by about 1 percent on the year before, to just under EUR 177bn. Business volume (including off-balance-sheet lending) fell by EUR 2bn to EUR198bn. On the asset side, loans and advances to banks and trading assets declined in all by around EUR3.7bn.
Loans and advances to customers rose by about EUR1.5bn to almost EUR93bn. Aggregate growth of the portfolio at EUR0.7bn was accounted for by the segments corporate and real estate customers, followed by private customers (EUR0.5bn) and public authorities (EUR0.3bn). Medium-term and long-term new business at EUR3.6bn was slightly above the corresponding quarter of the previous year.
The CET-1-Capital ratio of the Helaba Group at the end of March 2014 is 12.4 percent, and the total capital ratio amounts to 17.2 percent. Hans-Dieter Brenner, Helaba's CEO, says: "In regard to the ratios that are relevant for the ongoing balance sheet assessment by the ECB and the impending stress test, we feel well positioned on account of our conservative risk profile and the risk provisions we have built up."
Helaba's CEO expressed his satisfaction with the quarterly result: "We have made a strong start in the year 2014. I view it as a particular success that we remain on track with our earnings trend, thanks to customer business and despite the weakening - as expected - in the trading result. With EUR150m, we have already reached almost a third of the planned year's result in the first quarter of this year. However, to assume that such a result would continue in view of the numerous challenges that await us in the current year would not be appropriate. We stay with our cautious assessment. In view of the general circumstances for economic development - in spite of the persisting phase of low interest rates - we expect the operating result to remain at the last year's level. Implementation of the many regulatory measures will, however, continue to have a negative impact on the development of costs. Although the first quarter has turned out better than expected, our forecast result for 2014 remains unchanged."
Income statement of the Helaba Group under IFRS at 31.03.2014
01.01.-31.03. 01.01.-31.03.
2014 2013 Change
in EURm in EURm in EURm in %
Net interest income 317 283 34 12.0
Risk provisions in
loans and advances -53 -52 -1 1.9
Net interest income
after risk provisions
in loans and advances 264 231 33 14.3
Net commission income 75 75 0 0.0
Net trading income 54 119 -65 -54,6
Result from
hedges/derivatives 14 3 11 >100.0
Result from financial
investments (incl.
result from companies
using the equity
accounting method) 5 -8 13 >-100.0
Other operating result 42 52 -10 -19.2
General administrative
expenses -304 -302 -2 0,7
Group earnings before
taxes 150 170 -20 -11.8
Balance sheet (development) of the Helaba Group as of 31.03.2014 under IFRS
31.03.2014 31.12.2013
in EURm in EURm
Loans and advances to banks incl. cash reserve 20,981 23,108
Loans and advances to customers 92,561 91,032
Impairments on receivables -1,128 -1,117
Assets held for trading 30,686 32,311
Positive market value of derivatives not held for trading 5,062 4,690
Financial investments (incl. result from companies using
the equity accounting method) 24,433 24,196
Other assets 3,908 4,059
Total assets 176,503 178,279
Liabilities due to banks 32,994 34,162
Liabilities due to customers 44,915 43,939
Securitized liabilities 47,937 48,371
Trading liabilities 31,794 33,739
Negative market value of derivatives not held for trading 3,668 3,471
Provisions/other liabilities 2,741 2,291
Subordinated capital 5,227 5,073
Equity 7,227 7,233
Total liabilities 176,503 178,279
(table cont.)
Balance sheet (development) of the Helaba Group as of 31.03.2014 under IFRS
Change
in EURm in %
Loans and advances to banks incl. cash reserve -2,127 -9.2
Loans and advances to customers 1,529 1.7
Impairments on receivables -11 -1.0
Assets held for trading -1,625 -5.0
Positive market value of derivatives not held for trading 372 7.9
Financial investments (incl. result from companies using
the equity accounting method) 237 1.0
Other assets -151 -3.7
Total assets -1,776 -1.0
Liabilities due to banks -1,168 -3.4
Liabilities due to customers 976 2.2
Securitized liabilities -434 -0.9
Trading liabilities -1,945 -5.8
Negative market value of derivatives not held for trading 197 5.7
Provisions/other liabilities 450 19.6
Subordinated capital 154 3.0
Equity -6 -0.1
Total liabilities -1,776 -1.0
Financial ratios
31.03.2014 31.12.2013
in % in %
Cost-Income Ratio 59.9 61.6
Return on equity (before tax) 8.3 7.4
Total capital ratio 17.2 17.4
Core capital ratio 13.2 13,3
CET-1-Capital 12.4 12,5
Helaba's ratings
Moody's Investors Standard & Poor's
Service FitchRatings Corp.
Long-term liabilities A2 A+* A*
Short-term liabilities P-1 F1+* A-1*
Public mortgage bonds
(Public Pfandbriefe) Aaa AAA -
Mortgage bonds - AAA -
Financial strength/viability rating D+ a+* -
* Joint S-Group rating for the Sparkassen-Finanzgruppe Hessen-Thüringen
Press and Communication
MAIN TOWER
Neue Mainzer Strasse 52-58
60311 Frankfurt am Main
http://www.helaba.de
Tel: +49-(0)69 / 9132-2192
Wolfgang Kuss
E-Mail: wolfgang.kuss@helaba.de
Ursula-Brita Krueck
E-Mail: ursula-brita.krueck@helaba.de
SOURCE Helaba