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IKB Deutsche Industriebank AG: Results for the first half of the financial year 2016/17 - Seite 2

Some totals may be subject to discrepancies due to rounding differences.

Net interest and lease income in the Group increased slightly to EUR 144
million in the period under review (first half of 2015/16: EUR 142
million).

The Group recorded net fee and commission income of EUR 17 million, up on
the prior-year figure of EUR 14 million.

Administrative expenses in the Group declined slightly to EUR 141 million
in the period under review (first half of 2015/16: EUR 143 million).

Net other income improved from a negative EUR 8 million in the previous
year to EUR 29 million. This was attributable primarily to lower expenses
for retirement benefits and the net increase in income from the sale of
investments, as well as close-out payments of derivative transactions in
the banking book.


Net risk provisioning (EUR 18 million expense; previous year: EUR 14
million income) remained low compared with the long-term average. The
specific risk provisioning contained in this figure made a positive
contribution of EUR 9 million following a negative contribution of EUR 15
million in the previous year. There was a net addition to general
allowances of EUR 28 million in the period under review (previous year: net
reversal of EUR 20 million).

Net tax expenses amounted to EUR 21 million after net tax income of EUR 4
million in the same period of the previous year. All in all, consolidated
net income amounted to EUR 10 million (previous year: EUR 23 million).

The Group's total assets declined by EUR 0.7 billion versus 31 March 2016,
amounting to EUR 18.8 billion at the end of the reporting period. The CET 1
ratio amounted to 11.2% (31 March 2016: 11.6%). IKB maintained its common
equity tier 1 ratio at a high level and exceeded the statutory minimum
requirement of 4.5% (according to CRR) for the CET 1 ratio plus a capital
conservation buffer of 0.625% and the additional capital requirement
resulting from the SREP process. The full application of the Basel III
requirements results in a fully loaded CET 1 ratio of 10.6% as at 30
September 2016 (31 March 2016: 10.9%).

Applying the transitional provisions and the provisions of Delegated
Regulation EU 2015/62 of 17 January 2015, the leverage ratio of the IKB
Group in accordance with Article 429 CRR amounted to 8.3% as at 30
September 2016 (31 March 2016: 8.2%), thereby clearly exceeding the
benchmark of 3.0%. The liquidity coverage ratio was also significantly
above the regulatory minimum of 70%, amounting to 245% as at 30 September
2016 (31 March 2016: 283%).

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