Interim Report 2021
31.08.2021
Deutsche Apotheker- und Ärztebank (apoBank) completed the first six months of 2021 with a net profit of €37.0 million (30 June 2020: €32.7 million). Under challenging conditions, operating income remained stable at €103.0 million (30 June 2020: €103.6 million). apoBank maintained its market position in the reporting period. Customer loans, for example, remained stable at €38.2 billion (31 December 2020: €38.2 billion). The Bank expanded its business start-up financing to €7.4 billion (31 December 2020: €7.2 billion). At the same time, the bank financed real estate loans more selective. Under intense competition, the Bank kept loans to corporate clients stable at €4.9 billion. In the securities investment business as well as in asset management, the Bank leveraged the tailwind created by the positive market trend. The deposit volume reached €11.4 billion (31 December 2020: €10.4 billion); this includes funds mandated in asset management amounting to €4.8 billion (31 December 2020: €4.4 billion). In its role as a depository bank for institutional investors, apoBank expanded the volume managed to €24.5 billion (31 December 2020: €22.5 billion).
- Challenging conditions affect business
- Net profit after tax reaches €37.0 million
- Dividend can be paid out as planned
Deutsche Apotheker- und Ärztebank (apoBank) completed the first six months of 2021 with a net profit of €37.0 million (30 June 2020: €32.7 million). Under challenging conditions, operating income remained stable at €103.0 million (30 June 2020: €103.6 million). apoBank maintained its market position in the reporting period. Customer loans, for example, remained stable at €38.2 billion (31 December 2020: €38.2 billion). The Bank expanded its business start-up financing to €7.4 billion (31 December 2020: €7.2 billion). At the same time, the bank financed real estate loans more selective. Under intense competition, the Bank kept loans to corporate clients stable at €4.9 billion. In the securities investment business as well as in asset management, the Bank leveraged the tailwind created by the positive market trend. The deposit volume reached €11.4 billion (31 December 2020: €10.4 billion); this includes funds mandated in asset management amounting to €4.8 billion (31 December 2020: €4.4 billion). In its role as a depository bank for institutional investors, apoBank expanded the volume managed to €24.5 billion (31 December 2020: €22.5 billion).
Outlook for financial 2021
apoBank expects the business environment to remain challenging in the second half of 2021. The Bank is placing particular focus on increasing customer satisfaction, which declined last year after the IT migration. For financial 2021 as a whole, apoBank plans to generate a net profit that would enable it to make the required allocations to reserves and to pay out an appropriate dividend. The ECB recently removed its restrictions on profit participation at the banks it supervises directly.
Ulrich Sommer, Chairman of the Board of Directors of apoBank: "We strive to give our clients the freedom to focus on what is important - healing. Our focus remains on business start-ups and investments of health professionals as well as financing of companies in the health care market. As a reliable partner, we also offer investment and pension solutions and continue to develop our products and services for our customers."
Ulrich Sommer, Chairman of the Board of Directors of apoBank: "We strive to give our clients the freedom to focus on what is important - healing. Our focus remains on business start-ups and investments of health professionals as well as financing of companies in the health care market. As a reliable partner, we also offer investment and pension solutions and continue to develop our products and services for our customers."
The results of the first six months of 2021 in detail
In the interest-bearing business, apoBank did not achieve the previous year’s level, in particular due to the long-term trend in interest rates. Although it posted lower burdens on interest expenditure, the bottom line showed a decrease in net interest income of 6.1% to €358.9 million (30 June 2020: €382.3 million). For the time being, we still do not charge any custodial fees for retail clients’ deposits, even if it burdens net interest income.
At €102.0 million, net commission income remained at the level of the previous year (30 June 2020: €103.2 million). Thanks to positive market trends revenues from the securities business performed well. Income from payment transactions was below the previous year’s level.
General administrative expenses remained stable for the time being at €371.2 million (30 June 2020: €374.6 million). Personnel expenses decreased to €125.0 million (30 June 2020: €134.2 million). Operating expenditure including depreciation rose to €246.1 million (30 June 2020: €240.4 million). Higher depreciation was the main reason for this increase. The operating result, i.e. the profit before risk provisioning, at €103.0 million, was at the previous year’s level (30 June 2020: €103.6 million), and thus well above the Bank’s expectations.
Risk provisioning for the operating business was at - €6.1 million (30 June 2020: -€43.4 million). This decline is primarily a result of lower allocations to loan loss provisions. Risk provisioning with reserve character amounted to -€24.1 million (30 June 2020: -€4.6 million).
The bottom line operating result was thus €72.7 million (30 June 2020: €55.6 million). Net profit after tax amounted to €37.0 million (30 June 2020: €32.7 million).
At the mid-year point, the balance sheet total had risen strongly by 10.7% to €65.8 billion (31 December 2020: €59.4 billion). In addition to the Bank’s participation in long-term ECB tenders, the main reason for this rise was the continuing inflow of customer deposits.
The common equity tier 1 capital ratio, at 16.3%, was at the level of the end of the previous year (31 December 2020: 16.3%); the total capital ratio was 17.8% (31 December 2020: 18.0%). apoBank confirmed its good capital position in this year’s ECB stress test once again, thus proving its ability to withstand crises. In a crisis simulation, the common equity tier 1 capital ratio reaches a level significantly higher than that of the average of participating banks.
At €102.0 million, net commission income remained at the level of the previous year (30 June 2020: €103.2 million). Thanks to positive market trends revenues from the securities business performed well. Income from payment transactions was below the previous year’s level.
General administrative expenses remained stable for the time being at €371.2 million (30 June 2020: €374.6 million). Personnel expenses decreased to €125.0 million (30 June 2020: €134.2 million). Operating expenditure including depreciation rose to €246.1 million (30 June 2020: €240.4 million). Higher depreciation was the main reason for this increase. The operating result, i.e. the profit before risk provisioning, at €103.0 million, was at the previous year’s level (30 June 2020: €103.6 million), and thus well above the Bank’s expectations.
Risk provisioning for the operating business was at - €6.1 million (30 June 2020: -€43.4 million). This decline is primarily a result of lower allocations to loan loss provisions. Risk provisioning with reserve character amounted to -€24.1 million (30 June 2020: -€4.6 million).
The bottom line operating result was thus €72.7 million (30 June 2020: €55.6 million). Net profit after tax amounted to €37.0 million (30 June 2020: €32.7 million).
At the mid-year point, the balance sheet total had risen strongly by 10.7% to €65.8 billion (31 December 2020: €59.4 billion). In addition to the Bank’s participation in long-term ECB tenders, the main reason for this rise was the continuing inflow of customer deposits.
The common equity tier 1 capital ratio, at 16.3%, was at the level of the end of the previous year (31 December 2020: 16.3%); the total capital ratio was 17.8% (31 December 2020: 18.0%). apoBank confirmed its good capital position in this year’s ECB stress test once again, thus proving its ability to withstand crises. In a crisis simulation, the common equity tier 1 capital ratio reaches a level significantly higher than that of the average of participating banks.