Archive 2003 Press-/Ad-hoc Publications

DEPFA BANK on track for outstanding result in 2003
Profit guidance for 2003 raised from € 250 million to € 300 million

5 August 2003 – Dublin / Frankfurt/Main

DEPFA BANK plc, the Public Finance specialist, today released an excellent set of results for the first half of 2003, with Group net income up by 24%, to € 176 million.  This corresponds to a return on equity after taxes of 30% and gives DEPFA BANK every confidence that it will achieve Group net income of € 300 million for the full year.  DEPFA is therefore capable of comfortably surpassing its original forecast by € 50 million.  DEPFA BANK sees the half-year result as both clear confirmation of its company strategy and as evidence of its exceptional position in the current banking environment.

Total revenues totalled € 298 million in the first-half year, up 41% year-on-year.  Extended net interest income was up 33% to € 175 million, while net commission income improved significantly to € 36 million (compared with ‑€ 3 million for the same period of 2002).

The 26% increase in administrative expenditure compared to the first half of 2002 to € 54 million is largely attributable to the quarterly accruals for variable compensation.  The cost/income ratio for the first six months was 18%, however a considerably higher figure for the full year is to be expected.  After a € 6 million charge for other expenditure, profit before taxes was € 238 million (+40%). 

DEPFA generated € 28.3 billion in new business during the first half of 2003, more than for the whole of 2002.  Its strategy of serving exclusively the needs of its public sector customers worldwide has proven to be highly successful.  The public finance volume grew overall by 4 % to a € 117.5 bn.

All business areas added to the successful half-year result.  DEPFA’s Budget Finance activities benefited from higher margins.  DEPFA Investment Bank further expanded its business in the EU accession candidate countries of Central and Eastern Europe and in Asia. DEPFA’s Infrastructure Finance business scored an important success in the North American market by arranging the financing of a toll motorway in California in May.  The bank’s US agency, which was established in May, was granted a New York State Banking Department licence in June and has already started up business.

Summary profile

DEPFA BANK plc is one of the leading providers of financial services to the public sector worldwide. It is a public limited company incorporated under Irish law, with subsidiaries and branches in many European countries as well as in the US, Japan and Hong Kong. DEPFA’s products and services cover the whole range of financing needs of the public sector, from budget financing through infrastructure financing to investment banking. Thanks to the clear focus of its business model DEPFA BANK enjoys a prominent position in an attractive market segment.

WKN (German Securities ID)             765818

Exchange listing:                              Frankfurt / Main

Stock listing codes:                           DEPF.DE (Reuters) / DEP GR (Bloomberg)

DEPFA BANK plc: consolidated figures as at 30 June 2003 (US GAAP)

(All figures relate solely to continuing operations; they do not include any results from discontinued operations.)