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82 NOTES / INCOME STATEMENT
Notes to the Investkredit Group Income Statement
(18) Segment reporting
The primary aim of segment reporting is to show the components making up the Investkredit Group's result broken
down into the following areas of business:
> Corporates (financing, consulting, treasury and asset management)
> Local government (financing, treasury and investment banking, holdings)
> Real estate (real estate project developments, forward purchase agreements, real estate investments,
real estate asset management)
“Others” cover bookings from consolidation. The setting off of prices for services provided by segments to each
other may arise through financing as well as the provisions of services: rates of interest that conform to the markets
are applied between the segments. Investkredit Bank AG provides services to its subsidiaries at cost.
Presentation of results by segment 2004
in EUR m Corporates
Local
government Real estate Others Total
Interest and similar income 351.3 973.3 86.6 -7.5 1,403.7
Interest and similar expenses -284.7 -923.8 -44.1 7.5 -1,245.1
Net interest income 66.7 49.6 42.5 0.0 158.7
Credit risk provisions (net) -7.2 -0.7 -1.2 0.0 -9.1
Fee and commission income 6.8 14.1 3.4 -2.0 22.4
Fee and commission expenses -5.2 -4.5 -1.4 0.4 -10.8
Net fee and commission income 1.7 9.6 2.0 -1.6 11.6
Trading result 2.1 0.9 0.2 0.0 3.3
Net income from investments 0.0 7.0 -0.9 0.0 6.1
General administrative expenses -34.8 -33.5 -7.0 0.0 -75.2
Balance of other income and expenses -1.7 5.0 -1.5 1.7 3.6
Balance of extraordinary income and expenses 0.0 0.0 0.0 0.0 0.0
Pre-tax profit for the year 26.7 38.0 34.1 0.1 98.8
Taxes on income -0.8 -6.0 -8.5 0.0 -15.3
After-tax profit for the year 25.8 32.0 25.7 0.1 83.6
Minority interests -3.7 -15.8 -10.0 0.0 -29.5
Net profit 22.2 16.3 15.6 0.1 54.1
Segment assets 7,154 14,169 763
Segment liabilities 6,988 14,054 668
Average equity 175 94 103 372
Interest margin 1.01% 0.41% 5.88% 0.84%
Risk-earnings ratio 10.9% 1.3% 2.9% 5.7%
Cost-income ratio 49.4% 55.7% 15.6% 43.4%
Return on assets 0.39% 0.27% 3.55% 0.44%
Pre-tax return on equity 26.6%
Return on equity – net profit 12.7% 17.3% 15.1% 14.6%
Employees (reporting date) 246 224 33 503