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·· ADMINISTRATIVE EXPENSES
Administrative expenses (including depreciation)
rose by 7.2 % to € 32.7 million, an increase that is
predominantly attributable to the basis effect of the
previous year with regard to personnel expenses,
as well as to higher personnel costs due to a slight
rise in the number of employees. Additional IT
expenses led to an increase in general administra-
tive expenses.
The cost/income ratio was only slightly up, at
31.3 % (previous year: 30.3 %) and continues to
confirm the Bank’s exceptionally good performance.
·· OTHER OPERATING INCOME AND
EXPENSES
The balance of other operating income and expen-
ses, at € 2.2 million, was € 0.9 million down on the
previous year. The result is more or less free of any
special effects and essentially includes income
from the rental of the bank’s own real estate.
·· RISK PROVISIONING
The risk result was € 25 million (previous year:
€ 25.5 million). The credit risk result included in
this figure was € 23.7 million and thus € 1.1 million
lower than the risk provisioning figure for 2004.
In its risk provisioning the Bank has reacted appro-
priately to all discernible default risks.
·· RESULT OF NORMAL BUSINESS ACTIVITY
Deutsche Hypo was able to achieve a slight incre-
ase of € 0.8 million to € 48.6 million in the result
from normal business activity during the 2005
financial year (previous year: € 47.8 million). The
return on equity before tax was 11.8 %. The lower
tax burden resulted in a clear € 2.2 million rise in
net income for the year to € 32.7 million. The
return on equity after tax rose from 7.7% to 7.9%.
·· REPORTING ON SUBSEQUENT EVENTS
There were no events of significant importance
following the close of the 2005 financial year
which had a material impact on our commercial
result for 2005.
·· PROPOSED APPROPRIATION
OF PROFIT
The Board of Managing Directors and the
Supervisory Board have decided to allocate € 11.0
million of the year’s net income of € 32.71 million
to the revenue reserves. This leaves a net profit for
the year of € 21.71 million.
The Board of Managing Directors and the
Supervisory Board shall propose to the sharehol-
ders at the General Meeting that the net profit for
the year be used to pay a dividend of € 11 (pre-
vious year: € 11) per unit share and to make a furt-
her transfer to other revenue reserves in the
amount of € 6.9 million. Based on the year-end
price of € 302.00, this dividend equates to an
interest return of 3.64 %.