Net interest income1 increased by € 23.2 million or 9.9 percent to € 256.6 million. We were able to increase this figure as predicted, which was especially due to the sustained success of our new business activities during the year under review. This figure also contains a single-digit million euro expense figure arising from the early termination of interest rate swaps.
Commissions paid were close to last year’s level and amounted to € 82.6 million. Commission income declined to € 8.1 making net commission balance2 a minus € 74.5 million, following minus € 74.2 million in the previous year.
This resulted in a net interest income and net commission income figure3, of € 182.1 million, an increase of € 22.9 million or 14 percent.
“General administrative expenses” rose by € 7.6 million to € 93.6 million, while personnel expenses increased by € 1.9 million or 4.3 percent.
Other administrative expenses rose by € 5.7 million or 13.5 percent. This increase was mainly due to projects aimed at optimising the processing of loans. Regulatory issues also contributed to higher costs, especially the implementation of the Markets in Financial Instruments Directive (MiFID II) and its corresponding regulation.
“Depreciation and write-downs of intangible and tangible assets” amounted to € 6.0 million or € 0.2 million less than the same
year-ago figure.
Total administrative expenses4 amounted to € 99.6 million compared to the € 92.2 million noted in the previous year. The cost-income ratio5 was 55 percent (previous year 56 percent).
The net sum of other operating expenses and income totalled minus € 3.8 million.
Results from operations before deducting provisions for risk6 rose by 24 percent over the previous year’s figure to € 78.7 million Euro.
The item “Income from sib of write-downs to claims and certain securities, as well as from reversals of provisions for possible loan losses”, totalled plus € 1.5 million after allocations to reserves pursuant t o Article 340f of the German Commercial Code. The credit risk situation remained unremarkable. The net sum of reversals to provisions made for risks in the lending business (including direct write-downs) amounted to plus € 10.5 million (previous year: minus € 16.4 million).
Net income derived from the sale of promissory note loans, and the redemption of registered securities and debt securities, amounted to € 4.5 million.
The item “Income from write-downs on participating interests, shares in affiliated companies and securities treated as fixed assets” amounted to plus € 4.9 million. This figure is primarily the result of proceeds from the sale of securities held as fixed assets.
Results from ordinary business activities amounted to € 85.1 million, an increase of 26 percent. After transferring € 5 million to the “Fund for General Banking Risks” pursuant to Art. 340g of the German Commercial Code and a tax expense item of € 33.8 million, annual net income amounted to € 46.3 million, which was 45 percent higher than in the previous year.
1)Net interest income is calculated by adding Item 1 Interest income plus Item 3 Current income plus Item 4 Income from profit-pooling, profit transfer or partial profit transfer agreements minus Item 2 Interest expenses as shown in the Income statement.
2)The net commission balance is the net sum of Item 5 Commission received plus Item 6 Commission paid as shown on the income statement.
3)The net interest income and net commission income balance is the sum of net interest income and the net commission balance.
4)Administrative expenses are the sum of Item 8 General administrative expenses and Item 9 Depreciation and write-downs of intangible and tangible assets as shown on the income statement.
5)Ratio between administrative expenses and net interest and commission income.
6)Net sum of Income Statement items 1 to 10.