DGAP-News

IKB Deutsche Industriebank AG: Figures for the first half of the financial year 2015/16 - Seite 2

respect to appropriate conditions and acceptable risks.

The Group recorded net fee and commission income of EUR 14 million (EUR 17
million). This development was primarily attributable to the fact that,
unlike in the comparative prior-year period, structuring and syndication
income was increasingly reported in net interest income rather than in net
fee and commission income in the first half of the financial year 2015/16.

Administrative expenses in the Group declined to EUR 143 million in the
period under review (EUR 154 million). The prior-year figure included a
higher level of audit and consulting expenses for the ECB comprehensive
assessment. In addition, expenses for IT and project consulting were
reduced and deposit protection expenses decreased as against the previous
year.

Net other income fell to EUR -8 million (EUR 117 million). The main reason
for this development: The measurement and sale of long-term investments and
close-out payments in connection with the strategic early dissolution of
derivative transactions in the banking book resulted in reduced net income
of EUR 26 million (EUR 92 million).

Net risk provisioning improved to EUR +14 million compared with the first
half of the financial year 2014/15 (EUR -24 million). IKB sees the
development of credit risk as a sign of the extremely positive sentiment
among German companies at present.

Net tax income amounted to EUR 4 million in the period under review after
tax expenses of EUR 16 million in the same period of the previous year.

The Group's total assets amounted to EUR 20.7 billion at the reporting date
(31 March 2015: EUR 22.4 billion). The CET 1 ratio amounted to 11.3%
(10.9%), meaning that IKB exceeded the statutory minimum requirement (CRR)
of 4.5% for the CET 1 ratio. Applying the Basel III provisions in full
results in a "fully loaded" CET 1 ratio of 10.3% as at 30 September 2015
(10.0%).

Applying the transitional provisions for 2014, the leverage ratio of the
IKB Group in accordance with Article 429 CRR amounted to 8.9% as at 30
September 2015 (8.5%), thereby exceeding the frequently cited benchmark of
3.0%. The liquidity coverage ratio amounted to 335% as at 30 September 2015
(273%). A minimum requirement of 60% has been in place since 1 October
2015.

The possibility that future EBA/ECB standards and interpretations or other
supervisory actions could lead to a retrospective change in the regulatory
ratios cannot be ruled out.

Outlook

IKB generated positive earnings in the first six months of the current