After nine months, HVB Group has already come close to its ambitious guidance for full-year 2005 a net profit of approximately €1 billion. In the third quarter it succeeded in accelerating the strong operating performance.
A particularly pleasing aspect was the substantial increase in revenues versus the second quarter: net commission income and trading result surged significantly. Despite considerably lower one-off and seasonal effects, net interest income edged down only slightly.
Administrative expenses and loan-loss provisions were stable on a quarter-on-quarter basis. All told, this resulted in a substantial increase in operating profit, both compared to the two preceding quarters and on a year-on-year basis. Non-recurrent income and one-off burdens below the operating profit largely offset each other in the quarter under review. Pre-tax profit and net profit were boosted very significantly versus the second quarter and the prior-year level.
Dieter Rampl, Board Spokesman of HVB Group, commented: "HVB Group has recorded a decidedly pleasing year-to-date financial performance and succeeded in further accelerating its operating performance in the third quarter. In all areas of the customer business, we have achieved a sustainable strengthening of our earning power. We are fully on track with respect to our fullyear targets. In 2005, HVB Group will earn its cost of capital and thus be a key component of the new UCI Group."
Source: HVB
