In the first six months of the year, net interest income, at €358.6 million, was slightly higher than the level of the previous year (30 June 2012: €343.1 million). The Bank’s lending business remained stable. It was able to increase customer deposit volumes, in spite of intense competition. In addition, net interest income benefited from the hedging measures taken for low-interest periods.
apoBank’s net commission income amounted to €53.6 million, also a slight increase on the previous year (30 June 2012: €50.6 million). The institutional securities business as well as private asset management continued to grow. As retail clients remained reticent, there was only moderate new business in the securities and insurance business in this area.
At €221.0 million, administrative expenses were considerably lower than in the same period of the previous year (30 June 2012: €245.6 million). One reason for this is the optimisation of the Bank’s cost structure. On the other hand, the previous year’s period had been impacted by the costs of IT migration. Here, the Bank benefited from the planned effects.
Against the backdrop of the positive trends in net interest income and administrative expenses, the operating result, i.e. profit before risk provisioning, at €181.4 million, was significantly higher than the previous year’s figure (30 June 2012: €132.8 million).
Risk costs and precautionary measures for the lending business, at €15.3 million, were significantly lower than the previous year’s level (30 June 2012: €38.5 million). For financial instruments and participations, they were at €99.8 million (30 June 2012: €59.5 million). The Bank was able to increase the precautionary measures taken in this area compared to the previous year.
The Bank took further pressure off its risk profile by continuing to reduce its structured financial products. Here, volume decreased to €1.4 billion (31 December 2012: €1.8 billion).
This went hand in hand with a further improvement in the Bank’s capital ratios as at 30 June 2013: The equity ratio amounted to 18.3% (31 December 2012: 14.4%) and the core capital ratio was at 13.3% (31 December 2012: 10.4%). Besides the allocations to reserves and the fund for general banking risks from the 2012 annual result, another factor that had a positive effect was the increase in members’ capital contributions. Here, existing members purchased new shares and the Bank was also successful in recruiting new members.
The Bank reduced its balance sheet total to €35.7 billion as at 30 June 2013 (31 December 2012: €37.9 billion). This is mainly due to the deliberate reduction in business volume outside the customer business.