Partnership for success

Preliminary results for 2018

DZ BANK Group reports a profit before taxes of €1.4 billion

In 2018, the DZ BANK Group generated a profit before taxes of €1.37 billion (2017: €1.81 billion). This was the result of its good operating performance. The DZ BANK Group increased the volume of business and gained market share in most areas. At the same time, the results reflect negative measurement effects caused by conditions in the capital markets. Other adverse one-off factors also had an impact.

In 2018, the DZ BANK Group made good progress in terms of its strategic development. Under ‘Verbund First 4.0’, for example, DZ BANK AG has set itself ambitious targets for earnings and costs and has already launched a comprehensive action plan. DG HYP and WL BANK successfully merged to form DZ HYP, the largest Pfandbrief bank in Germany. DVB Bank has made good headway with reducing risks and selling parts of its business.

“Despite headwinds from the capital markets, we achieved a respectable profit before taxes. We also refined our strategic structures and thus further strengthened our financial services group’s resilience for the future,” explains Cornelius Riese, Co-Chief Executive Officer of DZ BANK.

“Once again, the results are proof of our high intrinsic earnings power. The companies in the DZ BANK Group significantly expanded their customer business, particularly in collaboration with the cooperative banks. We thus continued to forge ahead with our ambitious plans for growth,” says Uwe Fröhlich, Co-Chief Executive Officer of DZ BANK.

The DZ BANK Group’s capital situation remains satisfactory. As at December 31, 2018, the common equity Tier 1 capital ratio was unchanged at 13.7 percent (December 31, 2017: 13.7 percent). The capital requirement defined specifically for DZ BANK by the supervisory authority (SREP ratio) is 9.75 percent. The DZ BANK Group’s leverage ratio was also almost at the prior-year level at 4.3 percent (December 31, 2017: 4.4 percent). Rating agencies Standard & Poor’s and Moody’s recently confirmed their credit ratings for the cooperative financial network of AA- (S&P) and for the DZ BANK Group of Aa1 (Moody’s). The DZ BANK Group is thus one of the best-rated banking groups in Europe.

More information: Press Release