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IKB Deutsche Industriebank AG: Results for the 2015/16 financial year - Seite 2

volume, which fell by 11% in the reporting period.

At EUR 30 million, the Group's net fee and commission income was lower than
the previous year's figure of EUR 42 million. The decline is due
essentially to structuring and syndication income, which was reported more
in net interest income and not net commission income.

The Group's administrative expenses were reduced by EUR 13 million to EUR
299 million. While personnel expenses for the Group remained at the
previous year's level of EUR 183 million, other administrative expenses
decreased by EUR 13 million to EUR 116 million. The reduction at Group
level was due to the rental expense saved by buying back the building of
IKB's headquarter in Düsseldorf and the absence of the expense incurred in
the previous year for IKB's participation in the ECB's comprehensive
assessment.

Net other income dropped down by EUR 160 million at EUR 1 million. The main
factors influencing this were the lower income from the measurement and
sale of long-term investments and the negative impact on earnings from the
performance of the assets outsourced under contractual trust arrangements
(CTA). EUR 7 million was appropriated to the fund for general banking risks
in accordance with section 340g HGB in the reporting period (previous year:
EUR 5 million) and recognised as an expense in net other income. The common
equity tier 1 capital of IKB increased by a corresponding amount.

Net risk provisioning was reduced by EUR 56 million from EUR -65 million in
the 2014/15 financial year to EUR -9 million. The decline reflects the
Bank's active risk management coupled with a satisfactory overall economic
situation.

Tax expenses amounted to EUR 1 million in the reporting period after EUR
120 million in the previous year, essentially on account of the absence of
the high non-recurring effect in the 2014/15 financial year due to
provisions for taxes for the 2008/09 financial year.

The Group's total assets declined by EUR 2.1 billion in the reporting
period to EUR 19.6 billion at the reporting date. The IKB Group's CET 1
ratio as at 31 March 2016 was 11.6%. Thus, IKB exceeded the statutory
minimum requirement (CRR) for the CET 1 ratio of 4.5% plus a capital
conservation buffer of 0.625%. The figure for the CET 1 ratio fully loaded
was 10.9% as at 31 March 2016.

Under the transitional provisions and applying the terms of Delegated
Regulation EU 2015/62 of 17 January 2015, the leverage ratio of the IKB
Group in accordance with Article 429 CRR was 8.2% as at 31 March 2016