Helaba sees strong Rise in Group Net Profit in the first Quarter

In the first quarter, Helaba Landesbank Hessen Thüringen achieved a group net profit before taxes of €194 million. This is an increase by roughly 46 per cent. Loan loss provisions were down significantly, by nearly 50 per cent to €65 million, with conservative valuation standards being upheld. Accordingly, net interest income after loan loss provisions was up by nearly 60 per cent to €155 million. Net commission income increased moderately, by € 4 million, and amounts to €68 million. Net trading income rose due to the positive market environment and higher profit contributions from customer-related trading business by 12 per cent to €131 million. Including the earnings components of the net income from hedging activities/derivatives (€27 million), financial assets (€-2 million) and the other operating result, the operating income of the Helaba Group rose by €40 million to €430 million. Administrative expenses declined by €21 million to €236 million. Similar to the other operating result, which was down by 42 per cent to €51 million, this position has been influenced by the deconsolidation of Hannover Leasing which had an effect for the first time. Administrative expenses include the banking levy in the amount of €9 million. The Bank expects these expenses to total € 36 million for the year as a whole. 

Compared with the figure at 31 December 2010, the balance sheet total of the Helaba Group declined by €6.3 billion to €159.9 billion. On the assets side, the development of loans and advances to banks, loans and advances to customers and trading assets contributed in particular to this development. The decline on the liabilities side is essentially due to the declines of liabilities to banks and to customers, securitised liabilities and trading liabilities. The Tier-1 ratio of the Helaba Group attains 10.7 per cent; the total capital ratio amounts to 16.1 per cent. After the adaptation of the "silent participations" to the Basel III recommendations that was resolved in April, the Bank has a "Core Tier-1 ratio" that is sufficient for passing the EBA stress test. 

Hans-Dieter Brenner, CEO of Helaba, is pleased with the result for the first quarter, but does not expect the earnings trend to steady at this high level: "Helaba had a positive start into the business year 2011. We can be highly satisfied with our group net profit after taxes of € 136 million. The positive earnings development has continued without change to date, both at the Helaba parent bank and at Frankfurter Sparkasse. We are on a positive course, but will not become euphoric. A linear forward projection of the earnings trend for the year as a whole would be presumptuous. The debt crisis in some euro countries is far from over. The financial markets are volatile and the experience made last year has taught us that they may hold potential for setbacks. Against this backdrop, we would be satisfied if we achieved an improvement of earnings of 10 per cent on the previous year."

Press Releases | May 24, 2011

Helaba sees strong Rise in Group Net Profit in the first Quarter

Press Release with the financial figures.

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