IKB Deutsche Industriebank in the first half of 2020/21: Solid net income achieved – profitability and cost efficiency in-creased
- Consolidated net income after risk provisions of €42 million; return on equity (ROE) improved to around 7%
- Earnings guidance for full year 2020/21 confirmed: net income of around €80 million expected
- Administrative costs further lowered by around 20% to €68 million
- Cost/income ratio improved to 56% from 64% previously
- Robust customer portfolio with NPL ratio (EBA definition) of 2.0% and risk provision expense of €13 million
- Common Equity Tier 1 (CET 1) significantly increased to 13.3% (previous year: 12.0%), pro forma CET 1 ratio in accordance with Basel IV of 14.0%
- Solid liquidity position: loan to deposit ratio of 64% and LCR of 309%
- The Chairman of IKB’s Board of Managing Directors Dr Michael Wiedmann said, “Our solid net income for the first half of the year confirms the sustainability and profitability of our focused business model. Our well-established and unbureaucratic cooperation with KfW enabled us to support our customers by granting loans under the coronavirus special programmes and we are thus one of the top 10 on-lending banks for KfW coronavirus special programmes.”
Net consolidated income € 8 million, excluding one-time effects income of € 80 million
Net consolidated income of € 80 million, adjusted for extraordinary expenses of € 48 million from the termination of the silent participations, € 21 million from restructuring expenses and € 2 million from transaction and consulting costs in relation to the capital reduction as well as the termination of the silent participations. Return on equity of approx. 6% assuming a common equity tier 1 ratio of 12% is calculated on risk-weighted assets of € 11.4 billion.
Administrative expenses reduced by 19% from € 192 million to € 156 million
Personnel expenses further reduced from € 99 million to € 81 million. Other administrative expens-es reduced in the Group from € 94 million to € 75 million. Administrative expenses will be further reduced to approx. € 140 million in the financial year 2020/21 and to below € 110 million in the medium-term.