HVB pre-tax profit down 75.8 percent

As of September 30, 2002 the HVB Group posted a operating profit before risk provision of €2.03 billion - after €2.7 billion in the comparable prior-year period. Pre-tax profit came to €264 million €1,093 million in the comparable prior-year period (down 75.8 percent).

Net interest income fell 5.7 percent to approximately €5 billion. Loan-loss provisions rose to €2,48 billion on account of the high number of insolvencies in Germany and the deteriorating credit standing of German and foreign debtors for the first nine months. This corresponds to an increase of 85.5 percent over the previous year.

As securities and custodial business weakened once again, net commission income, at €2.03 billion, slipped 6.7 percent below the comparable figure for the previous year. Net commission income accounted for 26.7 percent (2001: 25.5 percent) of total operative revenues. Trading profit, which rose 3.8 percent to €493 million, was satisfactory.

Stricter cost management enabled the bank to depress administrative expense distinctly below the prior-year figure to €5.55 (down 3.3 percent). Without the planned restructuring expenses of €225 million contained in this figure, it would be even 6 percent lower. The cost-income ratio came to 70.2 percent (2001: 67.7 percent) excluding restructuring expenses. Return on equity adjusted for amortization of goodwill at September 30, 2002 was 1.8 percent.

For more information please visit www.hvbgroup.com.

(source: HVB Group)

Related News