HVB Group AG said it is on track to meet its full year targets following the release of third quarter results ahead of analyst expectations, which included a return to profit for the first time this year due mainly to a Ã¢âÂ¬ 279 mln extraordinary gain from the sale of its Norisbank subsidiary. 'With these results, HVB Group remains well within its target corridor for 2003,' it said.
HVB said it still expects to post full year pretax profit of between Ã¢âÂ¬ 300-600 mln before risk sheltering and dispsal gains. After nine months the comparative figure was 396 mln.
After nine months it is running to plan in terms of revenues, risk provisions, operating costs, and cost-income ratio. It did, however, give a less ambitious forecast for its year-end core capital ratio. It now expects this to reach 6.7-6.8 pct. Previously its forecast was for up to 7 pct.
Third quarter pretax profit was Ã¢âÂ¬ 368 mln, compared to a loss of 109 mln in the second quarter, and compared to analysts forecasts of between Ã¢âÂ¬ 210-290 mln.
Net income adjusted for minortity interests was Ã¢âÂ¬ 196 mln, up from a loss of 217 mln in the second quarter, and ahead of analyst forecasts of between 85-177 mln.
Operating income rose to Ã¢âÂ¬ 623 mln from 195 mln in the second quarter.
Risk provisions totalled Ã¢âÂ¬ 585 mln, compared to 581 mln, while trading profit slipped to 222 mln from 246 mln, and net interest income improved to 1.530 bln from 1.464 bln, HVB said.
Net commission income rose to 738 mln from 659 mln, and operating expenses were unchanged at 1.603 bln.