EQS-News

Results of IKB Deutsche Industriebank AG for the first half of 2023: solid corporate customer business in a demanding environment - Seite 2

"We took advantage of our strengths in the mid-cap corporate customer business in the first half of 2023. We have a solid and stable position thanks to our financial power, a focussed product portfolio and a conservative risk policy. Building on our sustainable finance framework, we are increasingly expanding operations to finance the sustainability transformation of our customers. We have laid the basis for achieving our goals in 2023 and achieving our mid-term targets, namely a CIR of about 40% and a RoE above 10%," says Dr Wiedmann, Chairman of the Board of Managing Directors of IKB.

 

Improved earnings in the first half of 2023

In the first six months of the 2023 financial year, IKB realised consolidated net income before tax of €36 million (prior year: €30 million), increased the volume of new business, and continued to focus on customers with good credit ratings. New loan volume amounted to €1.6 billion (prior year: €1.2 billion). The proportion of commercial loans within total business stood at 60% (prior year: 67%).

Despite the absence of benefits from the ECB's long-term refinancing programme (TLTRO), IKB increased the Group's net interest to €107 million in the period under review (prior year: €98 million). Adjusted for TLTRO income, net income in the reporting period advanced by €22 million (+26%) year on year. In the first six months of the 2023 financial year, net fee and commission income amounted to €9 million (prior year: €13 million). The decline was due to lower fee and commission income from loan structuring.

Administrative expenses totalled €77 million in the period (prior year: €80 million), with personnel expenses amounting to €45 million (prior year: €46 million), and other administrative expenses coming in at €32 million (prior year: €34 million). Personnel expenses continued to be negatively affected by a non-permanent expense of €9 million (prior year: €9 million), which was driven by pension increases and adjustments in long-term inflation rates. Other administrative expenses decreased due to lower contributions to the resolution fund of the European Banking Union (EU bank tax). IKB is on track to achieve its medium-term cost targets.