. : Presse-Informationen

19.11.2009

Profits up at DekaBank in third quarter

• Rating agencies rank Deka investment funds among top performers
• Economic result rises to EUR 503 million as at September 2009
• Net interest income up 50% to EUR 355 million
• Net financial income positive again at EUR 395 million after EUR-245 million
• Sound core capital ratio of 11.5%

*) Including goodwill amortisation of EUR 25 million.

**) The economic result is the central control variable and profit measure of the Group. In addition to the IFRS net income before tax, it includes the relevant valuation result from financial instruments not recognised in the income statement.

The DekaBank Group made further considerable gains in the third quarter, sharply increasing its economic result to EUR 502.5 million in the first nine months of 2009 (same period in 2008: EUR 6.8 million). Both net interest income and net financial income significantly outstripped the comparative figures for the previous year. DekaBank recorded disproportionately strong growth in the third quarter of 2009 in particular, and considerably expanded its economic result again compared with the first half of the year (EUR 142.2 million).

The central asset manager of the Sparkassen-Finanzgruppe benefited among other things from the attractive margins on its secure liquidity investments. "The apparent end to the financial market crisis and positive developments in the capital market are acting almost like a catalyser for DekaBank's business model," explains Franz S. Waas, Ph.D., Chairman of the Board of Management of DekaBank. "The good figures show that with the three business divisions, Asset Management Capital Markets (AMK), Asset Management Property (AMI) and Corporates & Markets (C&M), DekaBank can weather even stormy times and promises a profitable business in the future." DekaBank's integrated business model comprises investment fund and capital market business and consequently offers a host of advantages for the savings banks and their customers and here the comprehensive, high performance product portfolio in asset management and the provision of liquidity at all times for funds, savings banks and Landesbanken are a particular strength.

In investment fund business, the sustained upswing led to a rise in assets under management in the AMK and AMI business divisions from EUR 142.5 billion at the end of 2008 to EUR 150.5 billion. The good performance of Deka investment funds contributed significantly to this result. Franz S. Waas: "Our aim was to perceptibly raise the quality of our products for savings banks and their customers. We have succeeded, and three quarters of our equity and bond funds are currently outperforming their benchmark." The high quality of Deka products is also confirmed by renowned rating agencies such as Morningstar and Feri, which both rank DekaBank as one of the best major German fund providers.

With regard to fund sales, AMI performed well with net sales of EUR 1.9 billion (previous year: EUR 1.5 billion). In contrast, the AMK business division continued to be affected by the high level of investor restraint triggered by the financial market crisis, and security funds, especially money market funds, recorded outflows totalling EUR 1.9 billion (previous year: +EUR 7.9 billion). As a result of the good performance of Deka products combined with a stabilising economy and stock market upswing, DekaBank expects that investor confidence in securities will return in the coming year, which will lead to the corresponding rise in sales in the AMK business division as well.

Although at EUR 653.1 million, net commission income was down 9.3% on the comparative figure for the previous year (EUR 720.3 million), the level is still high. In contrast, net interest income climbed 49.8% to EUR 355.4 million (EUR 237.2 million). DekaBank utilised the favourable terms in the market, in customer business and with regard to its own deposits. Net financial income, which comprises trading and non-trading positions, improved considerably with a positive figure of EUR 394.7 million compared with EUR-244.6 million in the first nine months of 2008. The further reduction in price markdowns on capital market credit products (EUR-2 million after EUR-171 million as at end June) made a positive contribution here, as did the 163.7% increase in income from customer-initiated securities transactions to EUR 344.6 million (EUR 130.7 million).

Risk provisions amounted to EUR 256.3 million (previous year: EUR 116.8 million). DekaBank had already utilised the good half-year result to apply conservative standards to its risk provisions in June. Further evidence of the strength of DekaBank is its high core capital ratio, which the Bank increased without any outside assistance from 10.5% at the end of 2008 to a solid 11.5%.

At EUR 609.8 million, expenses were up 5.7% on the first nine months of 2008 (EUR 577.1 million). Excluding extraordinary amortisation (EUR 25 million) relating to the shares acquired in WestInvest GmbH in 2004, expenses were virtually on a par with the previous year.

DekaBank intends to again tailor its efforts in future to ensuring that the savings banks continue to receive the best possible product and service offering for their customers. "We have made considerable progress through the quality and process campaign launched in spring," comments Franz S. Waas. "And we are also closer to reaching our goal of reducing the number of jobs by 350 on a voluntary basis by the end of 2011." So far, 158 employees have opted for the exit offers agreed with the Staff Committee (part-time, early retirement, redundancy).

Franz S. Waas is very pleased with the overall profit at the end of the first nine months. The DekaBank Groups income increased by 90.5% to total EUR 1,112.3 million (EUR 583.9 million). "We have kept our word. Despite the financial market crisis, we have achieved a sound result thanks to our efficient business model and good products with a good performance." With regard to the net profit at the end of 2009, the Chairman of the Board of Management assumes that the Bank will as a minimum maintain the excellent nine-month results. "The markets are still very volatile and there will not be any resounding improvement in fund sales in the fourth quarter."

Many investors are still exercising considerable restraint and consequently did not profit from the rise in share prices in recent months. "However, only those who have investments in the equity market as well are benefiting from the current moderate economic recovery. Investors should now realign their portfolios and invest once more in equity funds that offer a higher yield in the long term," adds Franz S. Waas. "Hardly anyone can afford not to have additional pension provisioning these days and only investments in productive capital can generate the required return long term."

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