Overall, HVB Group recorded robust operating performance in the third quarter. Net interest income after adjustment for seasonal and one-off effects increased over the previous quarter, net commission income maintained the level of the second quarter.
The trend in administrative expenses and loan loss provisions confirmed the expectations. Due to lower trading profit, total operating revenues and, by extension, operating profit declined compared to the previous quarter. However, the operating profit after nine months already reached the adjusted full-year level of fiscal 2003.
Dieter Rampl, Board Spokesman of HVB Group, comments: 'We recorded good operating performance across the board in the third quarter. We are making noticeable progress in our revenue initiatives, especially with respect to net interest income. Admittedly, we must be prepared for reaching only part of our ambitious target ranges for full-year 2004, mainly because of weaker-than-anticipated trading profit. However, what counts above all for us is the fact that we have further improved our earnings quality and will generate a significant year-on-year increase in operating profit at the end of the year. The bank is clearly on the right track.'
Detailed breakdown of the results:
Net interest income