Helaba Group with earnings of EUR 485 m after third quarter

Frankfurt am Main (ots) -

- Cross reference: Full press release is available at
http://www.presseportal.de/dokumente -

- Net interest income stable, net fee and commission income
increases
- General administration expenses slightly below previous year
- New business with customers rises to EUR 13.9 bn
- Sound financial ratios

In the first nine months of 2015, Helaba achieved a group-wide
result before taxes of EUR 485 m, which was EUR 22 m or 4 per cent
below last year's very good result of EUR 507 m. The pro-rata budget
target was significantly exceeded. Group-wide earnings after taxes
reached EUR 319 m (previous year: EUR 340 m).

Herbert Hans Grüntker, Helaba's Chief Executive, draws a positive
conclusion from the Q3 results: "These interim results reflect the
good development of Helaba's operating business with customers. The
level of new medium and long-term business increased once again. This
also translates into a stable net interest income and higher earnings
from fees and commissions. Despite increased regulation-induced costs
and higher contributions to guarantee funds, general administration
expenses were lower than in the previous year. With a view to the end
of the current financial year, I am optimistic that we will exceed
our targets. From today's perspective, I anticipate achieving a
result at the level of last year's record earnings of EUR 607
million".

P&L: net interest income stable, income from fees and commissions
increases, general administration expenses decline

The net interest income amounted to EUR 983 m and thus rose by 0.5
per cent, slightly higher than the same period of the previous year
(EUR 978 m).

Provisions for losses on loans and advances, at minus EUR 114 m,
were noticeably higher than last year's level (minus EUR 62 m), but
were nevertheless below the pro-rata budget target. After provisions
for losses on loans and advances, the net interest income fell by 5.1
per cent to EUR 869 m.

Net income from fees and commissions rose by EUR 16 m, or 7 per
cent, to EUR 245 m. Fees and commissions from asset management
activities as well as from the lending and guarantee business
performed especially well.

Thanks to a stable level of customer business, net trading income
of EUR 119 m in the third quarter remained on the same level as last
year (EUR 121 m), despite a challenging market environment.

Net income from hedge accounting and non-trading derivatives
amounted to minus EUR 1 m (previous year: EUR 72 m).

The result of financial investments (including companies valued at
equity) declined by EUR 11 m to EUR 13 m. Among other things, this
was impacted by an impairment on a HETA Asset Resolution AG
(Klagenfurt) bond in an amount of minus EUR 38 m.

The other operating income grew by EUR 90 m to EUR 147 m, largely
as a result of net income from equity investments in the real estate
sector (EUR 103 m). Furthermore, the absence of exceptional charges
that affected the prior year's result had a positive effect.

General administration expenses declined by EUR 5 m to EUR 907 m
compared to the same period in the previous year. While personnel
expenses rose by EUR 22 m to EUR 465 m due to additional costs
arising from collective bargaining agreements, a reduction in other
administration expenses of EUR 27 m to EUR 442 m was achieved, in
spite of fully absorbing the costs of the new European bank levy and
higher contributions to guarantee funds of the
Sparkassen-Finanzgruppe. The absence of costs for services provided
by Portigon AG had a positive impact.

Earnings before taxes reached EUR 485 m, after EUR 507 m in the
previous year. After deducting income taxes of EUR 166 m, which were
at nearly the same level as last year, the Group's net earnings
amounted to EUR 319 m (previous year: EUR 340 m).

Balance sheet total almost unchanged with rise in loans and
advances to customers

At EUR 178 bn, the Group balance sheet total fell slightly by EUR
1 bn compared to the end of 2014. Loans and advances to customers
rose by 3 per cent to around EUR 94 bn, in part due to exchange rate
effects but primarily as a result of an increase in loans and
advances to corporate and real estate customers as well as to the
public sector. Assets held for trading fell by approximately EUR 3 bn
to just over EUR 28 bn.

On the liabilities side, liabilities due to banks increased by EUR
1.8 bn to slightly above EUR 37 bn, securitised liabilities by EUR
2.7 bn to EUR 51 bn and liabilities due to customers by EUR 3.5 bn to
around EUR 49 bn. Due to an increase in short-term deposits, trading
liabilities fell to just over EUR 20 bn.

At EUR 206 bn, the Helaba Group's total business volume remained
on the same level as the year before.

Positive trend in new business while margins continue to fall
Sound development of financial ratios

On a group-wide basis, the amount of new medium and long-term
business (not including promotional activities by WIBank) reached EUR
13.9 bn (previous year: EUR 12.5 bn). Of this new business, EUR 7.5
bn was attributed to Real Estate Finance and EUR 3.5 bn to Corporate
Finance. The S-Group business with savings banks, the private
customer and SME business as well as the home savings business
contributed EUR 1.9 bn. EUR 0.8 bn in new medium and long-term
business was concluded with local and regional authorities. The
average interest margin of the entire portfolio of new medium and
long-term business was above the target value but significantly below
margins achieved in the previous year.

Approximately EUR 11.6 bn in medium and long-term funding had been
raised on the capital markets after the first nine months of the year
(previous year: 8.5 bn). The amount of unsecured funding totalled EUR
4.9 bn (previous year: EUR 4 bn). As a consequence of the low
interest rate environment, sales of retail issues for the savings
banks' private customer business declined to around EUR 1.9 bn
(previous year: EUR 2.4 bn). The volume of Pfandbrief issues - as in
the same period of 2014 - came to a total of EUR 4 bn. Of this, EUR
1.5 bn was attributable to public Pfandbriefe and and EUR 2.5 bn to
mortgage Pfandbriefe. Subordinated issues in a volume of around EUR
700 m contributed to strengthening the bank's funding basis.

Taking into account the current transitional phase-in arrangements
for capital requirements, as of 30.09.2015 the common equity tier 1
(CET1) ratio was 13.1 per cent. The total capital ratio amounted to
18.3 per cent. When applying the rules applicable from 2018 in a
fully-loaded scenario, the core capital ratio reached 12.0 per cent.
The leverage ratio was 3.9 per cent.

Return on equity before taxes reached 8.8 per cent and the
cost/income ratio was 60.2 per cent.

Outlook for the year

"In the first three quarters of 2015, Helaba continued the
positive trend in its business and earnings. In a market environment
characterised by increasingly intense competition, the Board of
Managing Directors expects an annual result on the same level as the
very good previous year, provided no serious market turbulence
arises", Herbert Hans Grüntker remarked with a view to the fourth
quarter of 2015. 1 Helaba Press Release 2 Helaba Press Release

Contact:
Press and Communication
MAIN TOWER · Neue Mainzer Strasse 52-58
60311 Frankfurt am Main
www.helaba.de
Tel.: +49 (0) 69 / 9132 - 2192

Wolfgang Kuss
E-mail: wolfgang.kuss@helaba.de

Ursula-Brita Krück
E-mail: ursula-brita.krueck@helaba.de