In 2001, with net income before taxes of EUR 343 million, Deutsche Postbank AG improved on the previous year’s performance by almost 47%. This figure represents by far the best result in the history of Postbank. Chairman of the Managing Board, Professor Wulf von Schimmelmann told journalists in Frankfurt on Monday: “Postbank has steered a successful course now for three consecutive years. We not only beat the record result of the previous year, but also exceeded most of the challenging objectives that we had set ourselves and succeeded in gaining additional market share in many areas. We are on the right track at Postbank. The considerable efforts expended in recent years have paid off and will continue to bear fruit.”
In 2001, almost all the key Postbank ratios were significantly improved and, compared with the competition, Postbank gained momentum. The cost-income and return on equity ratios were both up. And von Schimmelmann commented: “We have not yet reached our long-term goals, but we are on the right course and progressing strongly.”
Private customers: 120,000 new accounts
Following the drop-back of the previous year, Postbank managed to restabilise the investment volume. The total volume for savings and investment funds reached EUR 35.8 billion (previous year: EUR 34.5 billion). The total volume of savings on the balance sheet increased by EUR 1.4 billion (up 4.5%) to EUR 32.4 billion, due in part to the new DAX savings book. “A success that gives me particular pleasure. Savings, often written off as a dead area by some banks, is showing plenty of life,” said von Schimmelmann.
With its securities brand, Postbank easytrade, the Bank was unable to escape the turbulence on the markets. However, with 280,000 customers the product maintained a healthy level in its first full financial year. At a future date, Postbank easytrade will take over the 180,000 securities accounts of Deutsche Postbank Privat Investment. Investment fund customers will then also be able to use all Postbank sales channels (internet, call centre, branches). The aim here is to create a single securities account statement for a customer’s whole securities portfolio and to offer an up-to-the-minute, on-line overview of all investments held.
In 2001, Postbank made a net gain of almost 120,000 accounts, thereby achieving a significant increase in the total for the second consecutive year. This led to a favourable increase in the number of credit cards, by a further 100,000, to the current total of 450,000. Sight deposits also increased by 9% to EUR 10.4 billion. The above-average – compared with the competition – number of customers using Postbank on-line banking was further increased. Including the Postbank easytrade customers, the number of online customers rose in 2001 to approximately 1.3 million – more than 400,000 above the figure for the previous year.
Postbank also boosted its new business in the area of personal loans. 45,000 contracts with a volume of EUR 416 million resulted in double-digit growth rates.
Corporate clients: ambitious goals
Postbank is aiming for above-average growth in the area of specialist corporate client banking. To achieve this, Postbank must, in the course of 2002, attain those levels of service and quality provided at the very top of the market. In pursuing this aim, the Bank will utilize its decades of experience in corporate cash and payment transactions as well as the extensive synergies within the Deutsche Post World Net Group. In order to expand further the business in the logistics financing market within the Post Group, the Bank has acquired PB Capital Corp. in New York. Von Schimmelmann commented: “Now, we are also opening up the one-stop-shopping facility to our corporate clients in a geographically much larger dimension. Within the group set-up the presence in the USA enables us to offer our customers Deutsche Post World Net services across the entire logistics and financial chain, from the manufacturer to the purchaser, all from one source.”
In the reporting year, Postbank considerably expanded the commercial real estate loans business. With new business of over EUR 1.3 billion, the Bank increased its loan portfolio in this sector to the current level of some EUR 4.5 billion.
After years of falling numbers, since August last year, Postbank for the first time again achieved growth in the number of business customer accounts. The gap between new accounts and account closures has closed. This has resulted in a total number of 313,000 business accounts (previous year : 318,000).
Operating results:
Net income before taxes for the Postbank Group in 2001 showed an improvement of almost 47% over the previous year, at EUR 343 million.
Income at the Postbank Group increased by EUR 60 million to EUR 2,166 billion.
Net interest income at EUR 1.6 billion was at approximately the same level as that of the previous year.
Net commission income declined by 9% to EUR 408 million. In line with the poor stock market climate, this reflects lower commission income from the securities business (- EUR 44 million).
The result from trading amounted to EUR 56 million following EUR 5 million in the previous year. The increase is largely attributable to the separate valuation of the derivatives position in line with IAS 39. The financial investments result, reported for the first time, amounted to EUR 63 million.
The provision for risks amounted to EUR 102 million (previous year: EUR 76 million).
Administrative expenses fell slightly and, at EUR 1.8 billion, lay 0.6% below the value for the previous year. The average number of employees at the Postbank Group, including the 80 employees at PB Capital Corp., was 10,510 (previous year: 10,943). Staff reductions were made only on the basis of socially compatible measures. Personnel expenses were maintained at a consistent level, EUR 603 million. Total operating expenses fell by EUR 10 million to EUR 1.2 billion.
Other operating income and expenses, traditionally susceptible to marked fluctuations at Postbank increased to EUR 90 million, partly due to writing back reserves of EUR 64 million.
Net income before taxes of EUR 343 million was EUR 109 million higher than the figure for the previous year. Contributions to the total result were as follows : Private Clients - EUR 116 million; Corporate Clients - EUR 80 million; Financial Markets - EUR 81 million.
Taking account of the taxes on income and minorities, net income of the year of EUR 190 million was achieved.
Compared to the previous year, the balance sheet total increased by almost EUR 6 billion to EUR 140 billion. The increase is largely attributable to the integration of PB Capital Corp. and to accounting for the derivative financial instruments positions in accordance with IAS 39 provisions.
Amounts due from banks have remained more or less at the previous year's level, namely, EUR 37 billion.
Amounts due to customers, at a good EUR 44 billion, are EUR 5 billion up on the figure for the previous year. This includes EUR 2.5 billion from the US subsidiary, PB Capital Corp. The volume of construction financing increased by almost EUR 1 billion to EUR 13.3 billion and personal loans by EUR 0.1 billion to EUR 0.7 billion. Commercial financing increased by over EUR 1 billion to EUR 4.5 billion.
As at the balance sheet date, amounts due to banks were just under EUR 27 billion which is EUR 12 billion over the figure for the previous year. Due to the expiry of issues, the figure for securitised liabilities fell by EUR 7 billion to just on EUR 40 billion The hedging derivatives, reported for the first time in accordance with IAS 39, amount to EUR 2.4 billion.
Amounts due to customers fell, compared with the previous year, by EUR 1.6 billion to EUR 62 billion. Postbank maintained the savings deposits included here at a more or less constant level, contrary to the trend of the previous year. The total savings volume posted on the balance sheet increased by EUR 1.4 billion to EUR 32.4 billion.
The Bank’s equity reported as at December 31, 2001 amounted to EUR 4.8 billion (previous year: EUR 4.6 billion). The total capital ratio in accordance with Principle I of the Federal Banking Supervisory Office is 10.0%, the core capital ratio is 6.7%.
After the first two months of the 2002 financial year, Postbank is operating as scheduled. Net interest income is well above plan due to considerably higher savings deposit volume. Net commission income is steady. Overall, Postbank is aiming to improve further on the favourable result achieved in the previous year.
