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IKB Deutsche Industriebank AG figures for the 2023 financial year: Solid figures achieved in a difficult environment - Seite 2

Profitable new business and stable earnings

As forecast, new business was valued at €2.7 billion in 2023. Consequently, the previous year’s level was maintained on the basis of continued selective lending, with priority given to good credit ratings. 85% of new business is investment grade. The proportion of internally funded new business stood at 57% (previous year: 62%).

Net interest income increased by 20% to €224 million (previous year: €188 million). Higher interest rates caused by market-related factors led to an increase in interest income from lending business. Net commission income came to €20 million (previous year: €23 million) and is attributable to lower capital market business.

Administration expenses reached €147 million in 2023, thus slightly exceeding the previous year in line with the forecast (previous year: €145 million). Adjusted for extraordinary effects on pension plan expenses and one-time operating expenses, especially for projects in connection with regulatory requirements, they came to €128 million. Personnel expenses stood at €83 million (previous year: €84 million) and, in line with the forecast, came under pressure from extraordinary effects on pension plan expenses of €10 million (previous year: €13 million), especially due to further inflation-related adjustments made to pensions. Other administration expenses as well as depreciation, amortisation and impairments came to €63 million (previous year: €60 million) at the level of the Group.

Despite a challenging environment in the 2023 financial year, net risk provisioning amounted to an expense of € 34 million (previous year: expense of € 19 million) and includes an additional general loan loss provision of € 6 million for increased latent risks. This corresponds to risk costs of 37 basis points in relation to the loan book. Net risk provisioning was therefore slightly better than the forecast figure of € 35 million. Net risk provisioning also reflects the active portfolio and risk management, which also includes the early sale of exposures. The proportion of non-performing assets remained at a very low level with an NPL ratio of 2.0% (previous year: 1.9%). Total non-performing assets remained virtually stable at €172 million (previous year: €167 million).