The DAX-listed Hypo Real Estate Holding AG is able to look back on a successful financial 2005. The Management Board and the Supervisory Board accordingly intend to propose to the Annual General Meeting on 8 May 2006 that a dividend of EUR 1 per share be paid for financial 2005. This would represent an increase of €0.65 compared with the dividend for last year (€0.35 per share).
Net income before taxes and total operating revenues are either in line or have exceeded budget (all figures in the following are preliminary). At â¬22.3 billion, new business in real estate financing was considerably better than expectations.
Preliminary figures
Excluding restructuring expenses the Group generated preliminary net income before taxes of â¬442 million (net income before taxes in 2004: â¬221 million). If the one-off additional charge of â¬34 million due to the reorganisation resulting into the new Group structure which has been effective since January 2006 is taken into consideration, the preliminary net income before taxes amounted to â¬408 million and is thus within the communicated target range of â¬400 to 425 million.
Total operating revenues (sum of net interest income and net commission income, net trading income, net income from investments and balance of other operating income/expenses) amounted to â¬909 million in 2005 (previous year figure: â¬835 million; budgeted range: â¬895 to 915 million).
The addition to provisions for losses on loans and advances amounted to â¬149 million, and was considerably lower than budget (previous year figure: â¬276 million incl. risk shelter provided by HVB AG of â¬130 million; budgeted range: â¬190 to 180 million); this is particularly due to the much improved portfolio quality.
General administrative expenses amounted to â¬317 million (previous year figure: â¬315 million) and are thus slightly higher than the budgeted range of up to â¬315 million. This increase is attributable mainly to additional costs incurred prior to the reorganisation of the Group and bonus accruals.
According to preliminary calculations, new business (real estate financing) amounted to â¬22.3 billion, and is thus considerably higher than the target of â¬13.5 billion for the year (previous year figure: â¬12.6 billion). New business at Hypo Real Estate International segment amounted to â¬15.1 billion (target figure: â¬10 billion). At Württembergische Hypothekenbank, new business amounted to â¬4.4 billion (target figure: â¬2.5 billion). With acquired new business of â¬2.8 billion, Hypo Real Estate Germany segment also exceeded its target of â¬1 billion for the year.
Outlook for 2006
For 2006, the Management Board expects to see consolidated net income before taxes increase by at least 20% compared with the figure of â¬442 million stated for the previous year amount which was adjusted by the restructuring expenses. New business is expected to come in at last year's level.
Georg Funke, Chairman of the Managing Board of Hypo Real Estate Holding AG: "In 2005, our group has met its operating and strategic aims. We intend to expand further and boost our profitability in 2006. The Hypo Real Estate Group is to become one of the leading specialized global players in the field of commercial real estate financing, with a strong presence in Public Finance and Capital Markets."
Source: Hypo Real Estate
