H1 2014: DZ BANK Group reports profit before taxes of EUR 1.7 billion

  • The DZ BANK Group builds on record earnings of FY 2013
  • Profit before taxes increases compared to the year-earlier period by 27 per cent to EUR 1.7 billion
  • Group companies continue to report strong operating performance in the first six months of 2014
  • Successful completion of capital increase of EUR 1.5 billion
  • The core tier 1 capital ratio increased in H1 2014 to 10.5 per cent / or to 12 per cent on a pro-forma basis including the capital increase completed in Q3 2014
  • Wolfgang Kirsch: “We are aiming for full-year earnings for the DZ BANK Group that match the year-earlier level“

The DZ BANK Group was in very good shape in the first half of the current financial year, which was marked by the successful implementation of the capital increase. The Group reported profit before taxes of EUR 1.7 billion in H1 2014. This corresponds to an increase of 26.6 per cent compared to the year-earlier period (H1 2013: EUR 1.34 billion). The reason for this improvement is the strong operating performance throughout the entire DZ BANK Group, which is reflected in a positive result at all major group companies.

“The positive response to our cooperative business model is gratifyingly strong. This is apparent in the successes scored by our banking group in the past few months“, said Wolfgang Kirsch, CEO of DZ BANK AG. “Thanks to the effective and trusting cooperation throughout the entire cooperative financial network, we were able to exploit market potential together – the best example for this being the corporate banking business with small and medium-sized enterprises, which again made a stable showing thanks to the successful joint marketing activities with the local cooperative banks. This good starting position makes us confident that we shall also be able to meet the challenges posed by future regulatory requirements“, said Kirsch.

DZ BANK Group: Earnings as at 30 June 2014 (IFRS)

Net interest income in the DZ BANK Group declined slightly, down 4.6 per cent to EUR 1,499 million (H1 2013: EUR 1,571 million). This was mainly due to the low interest-rate level. The growth of Teambank’s consumer finance portfolio had a positive effect here. DZ BANK’s corporate banking business also made a positive contribution.

Allowances for losses on loans and advances totalled -EUR 66 million (H1 2013: -EUR 248 million).

Net fee and commission income increased from EUR 498 million in H1 2013 to EUR 699 million as at June 30 2014. This was due not least to the increase in assets under management at Union Investment.

Gains and losses on trading activities increased by 57.1 per cent to EUR 242 million (H1 2013: EUR 154 million). This is largely attributable to DZ BANK’s gains and losses on trading activities of EUR 230 million. Sales of structured products, which counter to the market trend reported a significant increase of 14 per cent to EUR 2.4 billion, and – in the capital markets business – sales of corporate bonds to institutional clients made an encouraging contribution here.

Other gains and losses on valuation of financial instruments amounted to EUR 275 million after EUR 738 million in the year-earlier period. The previous year’s figure was, however, positively affected by one-off effects in connection with reversals of impairments in the bond portfolios of DG HYP, which were far lower in the first half of 2014.

Due to increased premium income and higher gains on investments, net income from insurance activities increased to EUR 390 million in H1 2014, up EUR 82 million compared to H1 2013, which was negatively affected by natural disasters.

Administrative expenses rose by 2.6 per cent to EUR 1.46 billion. This increase was also due to the fact that regulatory requirements remained high.

The cost-income ratio in the DZ BANK Group was 45.2 per cent after 47.1 per cent in H1 2013.

The DZ BANK Group’s profit before taxes reached EUR 1.70 billion after EUR 1.34 billion in the year-earlier half year.

All major group companies made a positive contribution to this result in the first half of 2014. A few examples: Union Investment increased the volume of assets under management to a new all-time high of EUR 218.9 billion. R+V Versicherung reported a further increase of a total 11.8 per cent in premiums earned in all three business segments after the already high level achieved in H1 2013. With 400,000 newly-signed contracts, Bausparkasse Schwäbisch Hall reported new home savings business of EUR 15.7 billion. This was, however, below the unusually high level reported in the same period in 2013. This was the result of anticipatory effects in the previous year due to the introduction of new tariffs. TeamBank continued its successful business performance, increasing the easycredit volume by 3.4 per cent. In Private Banking, DZ PRIVATBANK attracted gross fresh money of more than EUR 1 billion, and DG HYP reported new business of EUR 2.1 billion.

This good operating performance goes hand in hand with the continuous strengthening of the capital base. In parallel to the oversubscribed capital increase of EUR 1.5 billion, further progress was made thanks to the on-going focusing of business, the prudent management of risk weighted assets and the retention of profits. The preliminary core tier 1 capital ratio taking into account the transitional regulations under CRR increased from 9.2 per cent as at the end of 2013 to 10.5 per cent as at 30 June 2014 and to 12 per cent on a pro-forma basis including the capital increase, which was recorded in the Register of Companies in the third quarter of 2014. Disregarding the transitional regulations, the preliminary core tier 1 capital ratio increased from 7.1 per cent to 9.3 per cent as at 30 June 2014 and to 10.9 per cent on a pro-forma basis taking into account the capital increase. “We are proud of the successful completion of the largest capital increase in our history and thank our owners not only for subscribing, but also for the very positive support they gave to the entire process. As a result, we believe we are well equipped to face further regulatory requirements. Against the background of further increases in capital requirements, the continued strengthening of our capital base from our own resources will also remain a central mission in the future“, said Kirsch.


Because of the good economic situation in Germany, the outlook for the second half of 2014 is positive. While the geopolitical tensions are increasingly dampening economic growth world-wide and are hampering the economic recovery in Germany, domestic demand continues to show a robust trend. The economists of DZ BANK still expect GDP growth of 1.5 per cent in Germany during the current year. “Against this background, we are aiming for a full-year result for DZ BANK Group that matches the year-earlier level“, said Kirsch.

DZ BANK Group’s semi-annual results (IFRS) as at 30.06.2014 compared to 2013

in EUR m



% change

Net interest income




Allowances for losses on loans and advances




Net fee and commission income




Gains and losses on trading activities




Gains and losses on investments




Other gains and losses on valuation of financial instruments




Net income from insurance activities




Administrative expenses




Other net operating income




Profit before taxes




Cost-income ratio (in %)



-1.9 % points

The complete interim report for H1 2014 can be downloaded from the DZ BANK website starting from 19 September 2014 at