Helaba Reports Earnings Of EUR 512 Million, Exceeding Previous Year's Result
The bank is reacting to growing costs due to increasing regulation - capital and liquidity costs, the bank levy as well as higher structural banking costs - as well as the accelerating pressure of competition with a programme of process and resource optimisation (Helaba PRO). Brenner: "Helaba has a stable and future-oriented business model. At the same time, however, we do not live blissfully on a desert island either. More than ever, we will have to fight to remain a sought-after partner for our customers in the future. The aim of this programme is to make comprehensive improvements to bank-wide business processes and, as a result, we envisage noticeable savings in administration costs for the company as a whole.
From a business perspective, Helaba's CEO sees the emphasis in 2013 very much on renewal. Internally, it will be a year of integration and investment. The expansion of the core region and the tapping of further market potential in customer and S-Group business represent huge opportunities which Helaba will take advantage of. The integration of the S-Group Bank as well as process and cost optimisation measures that have been initiated will, however, require significant capital expenditure.
Brenner: "With a view to new business and the development of earnings, the first quarter of 2013 began successfully. But it would be presumptuous to extrapolate this trend onto the whole year. The economic outlook is too uncertain for that and, more importantly, it is impossible to calculate the precise effects of regulation on the structural costs for banks. Should the current low interest rate phase continue, we anticipate that earnings from operating business will remain on the same level as previous years. Overall, we are thus cautiously optimistic for 2013 as a whole.
Balance Sheet (IFRS) for the Helaba Group as of 31 December 2012* 31.12.2012 31.12.2011 Change in EUR in EUR in EUR million million million in % Loans and advances to banks incl. cash reserve 32,161 15,646 16,515 >100.0 Loans and advances to customers 90,821 84,041 6,780 8.1 Impairments on receivables -1,205 -1,256 51 4.1 Assets held for trading 37,954 37,960 -6 - Positive market value of derivatives not held for trading 6,992 4,285 2,707 63.2 Financial investments, incl. companies accounted for using the equity method 28,003 18,805 9,198 48.9 Other assets 4,575 4,504 71 1.6 Total assets 199,301 163,985 35,316 21.5 Liabilities due to banks 39,275 31,533 7,742 24.6 Liabilities due to customers 47,611 41,907 5,704 13.6 Securitised liabilities 57,168 37,243 19,925 53.5 Liabilities held for trading 36,148 37,198 -1,050 -2.8 Negative market value of derivatives not held for trading 4,982 3,916 1,066 27.2 Reserves/other liabilities 2,937 2,228 709 31.8 Subordinate capital 4,363 4,466 -103 -2.3 Shareholders' equity 6,817 5,494 1,323 24.1 Total liabilities 199,301 163,985 35,316 21.5
Income Statement 2012 2011 Change in EUR in EUR in EUR million million million in % Net interest income 1,145 1,067 78 7.3 Provisions for loans and advances -238 -273 35 12.8 Net interest income after provisions for loans and advances 907 794 113 14.2 Net commission income 263 254 9 3.5 Net trading income 411 -44 455 >100.0 Result of hedges/derivatives -111 292 -403 >-100.0 Result from financial investments (incl. result from companies accounted for using the equity method) -13 -16 3 18.8 Other operating result 236 209 27 12.9 General administrative expenses -1,181 -997 -184 -18.5 Earnings before tax 512 492 20 4.1 Taxes on income -194 -95 -99 >-100.0 Consolidated net income 318 397 -79 -19.9
Ratings of Helaba
Moody's Investors Standard & Poor's Service FitchRatings Corp. Long-term liabilities A2 A+* A* Short-term liabilities P-1 F1+* A-1* Public Pfandbriefe Aaa AAA - Mortgage Pfandbriefe - AAA - Financial strength/ individual rating D+ a+* - * Joint group rating of the Sparkassen-Finanzgruppe Hessen-ThüringenFinancial ratios
2012 2011 in per cent in per cent Cost-income ratio* 61.2 56.6 Return on equity (before taxes)* 8.4 9.2 Total capital ratio** 16.3 15.3 Tier-1 capital ratio** 11.6 10.1* Including bank levy
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV