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22.05.2024 09:00:36 - dpa-AFX: EQS-News: Good start into the 2024 financial year for OLB (english)
Good start into the 2024 financial year for OLB
EQS-News: Oldenburgische Landesbank AG / Key word(s): Quarter Results
Good start into the 2024 financial year for OLB
22.05.2024 / 09:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
CORPORATE NEWS
Oldenburg, 22 May 2024
Good start into the 2024 financial year for OLB
* Targeted growth in both operating business segments achieved
* Prudent risk provisioning reflects economic environment
OLB (or 'Bank') has made a successful operational start to 2024. The Bank
expanded its activities in both business segments, Private & Business
Customers and Corporates & Diversified Lending. As of 31 March 2024, the
loan volume exceeded the EUR 20 billion (bn) mark for the first time with
EUR 20.1bn in total (first quarter in 2023: EUR 18.3bn), corresponding to
9.6% growth compared to the previous year. The operating result was once
again driven by the increase in net interest income of around 8% to EUR
130.6 million (m) (previous year: EUR 120.6m). The sum of net interest
income and net commission income as core revenues improved by around 4%
year-on-year. The operating income of EUR 156.5m was slightly below the
previous year's figure of EUR 160.8m since Q1 2023 was positively influenced
by an extraordinary non-recurring one-off gain of around EUR 7m. The return
on equity after taxes (1) amounted to 13.5% (previous year: 16.1%),
reflecting a prudently higher risk provisioning of EUR 18.5m (previous year:
EUR 2.9m) and substantial increase in total IFRS shareholders' equity. The
cost-income ratio (2) was at 40.1% (previous year: 36.8%).
"In the midst of a challenging economic environment, we maintained our
profitability and efficiency ratios at a high level in the first quarter.
Through selective growth, prudent risk provisioning and targeted investments
in strategic projects, we not only expanded our solid position, but also
further strengthened our resilience," says Stefan Barth, CEO of OLB.
Resilient business model in volatile markets
OLB's balanced business model once again proved its resilience in a highly
volatile market environment. Despite declining short-term interest rates,
the Private & Business Customers segment delivered stable operating income
of EUR 84.2m (previous year: EUR 85.1m). The volume of private mortgage
financing, which grew to a new high of more than EUR 8bn (previous year: EUR
7.4bn), made a significant contribution to this. A large part of this growth
was attributable to the successful cooperation with the mortgage platform
Tulp in the Netherlands. Commission business with securities also increased
as a result of higher customer activity. In the Corporates & Diversified
Lending segment, the loan volume in the sub-segments increased further year
on year, although OLB deliberately slowed the pace of growth here.
As the loan volume grew, customer deposits also rose to a new all-time high
and grew to EUR 17.4bn as of 31 March 2024 (previous year: EUR 16.1bn), up
by 8.4% compared to the previous year. The Bank's granular customer deposits
continue to serve as the primary source of refinancing for loan growth.
Investments in OLB's future characterised the development of costs. The
increase in operating expenses to EUR 65.9m (previous year: EUR 59.3m) was
driven by expenses related to the Degussa Bank transaction totalling EUR
3.2m as well as to other strategic projects and to the sustained adjustment
of internal structures to future regulatory standards with regards to the
expected ECB supervision.
Prudent risk provisioning reflects subdued economic environment
Following the better-than-expected previous quarters, the bank consistently
took the difficult macroeconomic development into account in the first three
months of 2024 with a prudent increase in risk provisions. Risk provisions
amounted to EUR 18.5m (previous year: EUR 2.9m) or 37 basis points (previous
year: 6 basis points). OLB expects the need for risk provisions to normalise
again in the course of the second half of the year. At 1.6%, the ratio of
non-performing loans was unchanged from the previous two quarters (previous
year: 1.3%).
Despite the deliberately higher risk provisioning and the absence of the
one-off gain from the previous year, OLB achieved a solid quarterly result
with earnings before taxes of EUR 70.8m, or EUR 74.1m respectively excluding
expenses for the Degussa Bank transaction, due to the robust strength of its
operating business model (previous year: EUR 83.6m resp. EUR 85.0m).
In the further course of the year, OLB will benefit, among other things,
from the expected IFRS badwill of around EUR 70m related to the acquisition
of Degussa Bank in the second quarter with additional positive merger
effects to be realised following the legal and technical merger with Degussa
Bank planned for 30 August 2024. As a result, OLB will report Degussa Bank
as a subsidiary in its financial reporting for the second quarter of 2024
and as a combined entity from the third quarter of 2024.
At 14.4% (31 December 2023: 14.5%), the CET1 ratio (3) remained deliberately
above OLB's target ratio of at least 12.25%. "We continue to manage the Bank
conservatively in terms of capitalisation and liquidity. The capital
requirements already reflect all mandatory items. With the issue of two
subordinated bonds in the first quarter, we were able to further improve our
capital efficiency," says Dr Rainer Polster, CFO of OLB.
Strategic focus on the smooth integration of Degussa Bank
In the transition year 2024, OLB will develop into a bank with nationwide
locations and even more relevance in the European banking sector. In the
coming months, OLB will strategically focus on preparing the legal and
technical merger with Degussa Bank. As a result of the increase in total
assets to more than EUR 30bn following consolidation, OLB expects to be
classified as a 'significant institution' in 2025 and to shift into direct
supervision by the ECB. OLB is also continuing to prepare intensively for
this. "The prospect of soon being one of the top-100-banks in Europe fills
us with pride," says Stefan Barth, "at the same time, we are aware of the
responsibility this entails and take this responsibility very seriously."
Income statement OLB Group (4)
Selected balance sheet figures OLB Group
Capital and liquidity (6)/ (7)
About OLB
OLB is a profitable and growing universal bank for private and corporate
customers in Germany and neighbouring European countries. Under its OLB Bank
and Bankhaus Neelmeyer brands, OLB advises its about 665.000 customers in
person and via digital channels in its Private & Business Customers and
Corporates & Diversified Lending segments. The Bank has about EUR 26 bn of
total assets.
Feel free to visit us at www.olb.de and www.neelmeyer.de as well as on
Facebook, Instagram and YouTube.
1. mailto:ccir@olb.de
Disclaimer
This information does not contain any offer to acquire or subscribe the
securities mentioned therein, nor should it be construed as an invitation to
do so. The opinions expressed herein reflect our current assessment, which
is subject to change even without prior notification. This information
cannot be regarded as a substitute for individual advice tailored to the
investor's respective situation and investment objectives.
The information contained in this press release includes financial and
similar information which is neither audited nor finally reviewed and should
be considered preliminary and subject to change.
Likewise, this document does not, either in whole or in part, constitute a
sales prospectus or any other stock exchange prospectus. The information
contained in this document therefore merely provides an overview and should
not form the basis of an investor's potential decision to purchase or sell
the securities.
The information and assessments (collectively referred to as "information")
are intended solely for clients with their registered office in the Federal
Republic of Germany. In particular, this information is not addressed to US
citizens or US residents and US persons or Australian, Canadian, British or
Japanese citizens or residents and must not be distributed to such persons
or introduced into or disseminated in such countries. This document
including the information contained therein may be used abroad only in
accordance with the relevant applicable law. Any persons receiving this
information shall be obliged to familiarise themselves with and observe the
legal provisions applicable in their respective country.
This document has been prepared and published by Oldenburgische Landesbank
AG, Oldenburg. The information has been carefully researched and is based on
sources deemed to be reliable by Oldenburgische Landesbank AG. However, the
information may no longer be up-to-date and may be obsolete by the time you
receive this document. Furthermore, it cannot be ensured that the
information is correct and complete. Oldenburgische Landesbank AG therefore
assumes no liability for the contents of the information.
In addition, this document in connection with Oldenburgische Landesbank AG
contains various forward-looking statements and information based on the
management's beliefs and on assumptions and information currently available
to the management. Considering the known and unknown risks associated with
the business of Oldenburgische Landesbank AG as well as uncertainties and
other factors, the future results, performances and outcomes may differ from
those deduced from such forward-looking or historical statements. The
forward-looking statements speak only as of the date of this document.
Oldenburgische Landesbank AG expressly disclaims any obligation or
undertaking to release any updates or revisions to any forward-looking
statements to reflect any change in its expectations with regard thereto or
any changes in events, conditions or circumstances on which any
forward-looking statements are based. Any persons receiving this document
should not give undue influence to such historical statements and should not
rely on such forward-looking statements.
This document also contains certain financial measures that are not
recognized under IFRS or German GAAP ("HGB"). These alternative performance
measures are presented because Oldenburgische Landesbank AG believes that
they and similar measures are widely used in the markets in which it
operates as a means of evaluating its operating performance and financing
structure. They may not be comparable to other similarly titled measures of
other companies and are not measurements under IFRS, HGB or other generally
accepted accounting principles.
All figures based on IFRS unless otherwise stated
(1) Based on average IFRS shareholders' equity deducted by accrued dividends
and excluding expenses related to Degussa Bank acquisition (EUR1.5m in Q1
2023, EUR3.2m in Q1 2024)
(2) Excluding expenses related to Degussa Bank acquisition (EUR1.5m in Q1
2023, EUR3.2m in Q1 2024)
(3) Based on regulatory capital adjusted by accrued retention
(4) Rounding differences may occur
(5) Based on average IFRS shareholders' equity deducted by accrued dividends
and excluding expenses related to Degussa Bank acquisition (EUR1.5m in Q1
2023, EUR3.2m in Q1 2024)
(6) Based on German GAAP (HGB)
(7) Based on regulatory capital adjusted by accrued retention
---------------------------------------------------------------------------
22.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
End of News EQS News Service
---------------------------------------------------------------------------
1908065 22.05.2024 CET/CEST
EQS-News: Oldenburgische Landesbank AG / Key word(s): Quarter Results
Good start into the 2024 financial year for OLB
22.05.2024 / 09:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
CORPORATE NEWS
Oldenburg, 22 May 2024
Good start into the 2024 financial year for OLB
* Targeted growth in both operating business segments achieved
* Prudent risk provisioning reflects economic environment
* Focus on strategic projects in transition year: Integration of Degussa
Bank post April 2024 closing and shift to ECB supervision
OLB (or 'Bank') has made a successful operational start to 2024. The Bank
expanded its activities in both business segments, Private & Business
Customers and Corporates & Diversified Lending. As of 31 March 2024, the
loan volume exceeded the EUR 20 billion (bn) mark for the first time with
EUR 20.1bn in total (first quarter in 2023: EUR 18.3bn), corresponding to
9.6% growth compared to the previous year. The operating result was once
again driven by the increase in net interest income of around 8% to EUR
130.6 million (m) (previous year: EUR 120.6m). The sum of net interest
income and net commission income as core revenues improved by around 4%
year-on-year. The operating income of EUR 156.5m was slightly below the
previous year's figure of EUR 160.8m since Q1 2023 was positively influenced
by an extraordinary non-recurring one-off gain of around EUR 7m. The return
on equity after taxes (1) amounted to 13.5% (previous year: 16.1%),
reflecting a prudently higher risk provisioning of EUR 18.5m (previous year:
EUR 2.9m) and substantial increase in total IFRS shareholders' equity. The
cost-income ratio (2) was at 40.1% (previous year: 36.8%).
"In the midst of a challenging economic environment, we maintained our
profitability and efficiency ratios at a high level in the first quarter.
Through selective growth, prudent risk provisioning and targeted investments
in strategic projects, we not only expanded our solid position, but also
further strengthened our resilience," says Stefan Barth, CEO of OLB.
Resilient business model in volatile markets
OLB's balanced business model once again proved its resilience in a highly
volatile market environment. Despite declining short-term interest rates,
the Private & Business Customers segment delivered stable operating income
of EUR 84.2m (previous year: EUR 85.1m). The volume of private mortgage
financing, which grew to a new high of more than EUR 8bn (previous year: EUR
7.4bn), made a significant contribution to this. A large part of this growth
was attributable to the successful cooperation with the mortgage platform
Tulp in the Netherlands. Commission business with securities also increased
as a result of higher customer activity. In the Corporates & Diversified
Lending segment, the loan volume in the sub-segments increased further year
on year, although OLB deliberately slowed the pace of growth here.
As the loan volume grew, customer deposits also rose to a new all-time high
and grew to EUR 17.4bn as of 31 March 2024 (previous year: EUR 16.1bn), up
by 8.4% compared to the previous year. The Bank's granular customer deposits
continue to serve as the primary source of refinancing for loan growth.
Investments in OLB's future characterised the development of costs. The
increase in operating expenses to EUR 65.9m (previous year: EUR 59.3m) was
driven by expenses related to the Degussa Bank transaction totalling EUR
3.2m as well as to other strategic projects and to the sustained adjustment
of internal structures to future regulatory standards with regards to the
expected ECB supervision.
Prudent risk provisioning reflects subdued economic environment
Following the better-than-expected previous quarters, the bank consistently
took the difficult macroeconomic development into account in the first three
months of 2024 with a prudent increase in risk provisions. Risk provisions
amounted to EUR 18.5m (previous year: EUR 2.9m) or 37 basis points (previous
year: 6 basis points). OLB expects the need for risk provisions to normalise
again in the course of the second half of the year. At 1.6%, the ratio of
non-performing loans was unchanged from the previous two quarters (previous
year: 1.3%).
Despite the deliberately higher risk provisioning and the absence of the
one-off gain from the previous year, OLB achieved a solid quarterly result
with earnings before taxes of EUR 70.8m, or EUR 74.1m respectively excluding
expenses for the Degussa Bank transaction, due to the robust strength of its
operating business model (previous year: EUR 83.6m resp. EUR 85.0m).
In the further course of the year, OLB will benefit, among other things,
from the expected IFRS badwill of around EUR 70m related to the acquisition
of Degussa Bank in the second quarter with additional positive merger
effects to be realised following the legal and technical merger with Degussa
Bank planned for 30 August 2024. As a result, OLB will report Degussa Bank
as a subsidiary in its financial reporting for the second quarter of 2024
and as a combined entity from the third quarter of 2024.
At 14.4% (31 December 2023: 14.5%), the CET1 ratio (3) remained deliberately
above OLB's target ratio of at least 12.25%. "We continue to manage the Bank
conservatively in terms of capitalisation and liquidity. The capital
requirements already reflect all mandatory items. With the issue of two
subordinated bonds in the first quarter, we were able to further improve our
capital efficiency," says Dr Rainer Polster, CFO of OLB.
Strategic focus on the smooth integration of Degussa Bank
In the transition year 2024, OLB will develop into a bank with nationwide
locations and even more relevance in the European banking sector. In the
coming months, OLB will strategically focus on preparing the legal and
technical merger with Degussa Bank. As a result of the increase in total
assets to more than EUR 30bn following consolidation, OLB expects to be
classified as a 'significant institution' in 2025 and to shift into direct
supervision by the ECB. OLB is also continuing to prepare intensively for
this. "The prospect of soon being one of the top-100-banks in Europe fills
us with pride," says Stefan Barth, "at the same time, we are aware of the
responsibility this entails and take this responsibility very seriously."
Income statement OLB Group (4)
EURm 01.01.-31.03.2- 01.01.-3- Change-
024 1.03.202- s in %
3
Net interest income 130.6 120.6 8.3
Net commission income 28.1 31.3 -10.2
Trading result 0.3 6.2 -95.2
Result from hedging relationships 0.4 -5.5 n/a
Other income 0.1 7.5 -98.7
Result from non-trading portfolio -3.0 0.7 n/a
Operating income 156.5 160.8 -2.7
Personnel expenses -34.5 -34.5 0.0
Non-personnel expenses -25.4 -18.8 34.9
Depreciation, amortization and -5.6 -5.3 4.0
impairments of intangible and tangible
fixed assets
Other expenses -0.4 -0.5 -16.7
Operating expenses -65.9 -59.3 11.3
Operating result 90.6 101.6 -10.8
Expenses from bank levy and deposit -1.1 -15.1 -92.5
protection
Risk provisioning in the lending -18.5 -2.9 >100.0
business
Result from restructurings -0.1 0.0 n/a
Result before taxes 70.8 83.6 -15.3
Income tax -21.8 -26.9 -19.0
Result after taxes (profit) 49.1 56.7 -13.4
Return on Equity after taxes 12.9% 15.8% -2.9
(13.5%(1)(5)) (16.1%5) ppt
1. #_ftn5
Cost-income ratio 42.1% (40.1%) 36.8% 5.3
(35.9%) ppt
Cost-income ratio (including 42.8% 46.2% -3.4
regulatory expenses) ppt
Net interest margin 2.63% 2.65% -0.02
ppt
Selected balance sheet figures OLB Group
EURm 31.03.2024 31.12.2023 31.03.2023
Receivables from customers 20,054.3 19,724.6 18,302.8
Liabilities to customers 17,416.3 16,917.6 16,063.6
Equity 1,728.9 1,681.0 1,578.2
Total assets 26,071.7 25,878.6 24,536.7
Capital and liquidity (6)/ (7)
EURm 31.03.2024 31.12.2023 31.03.2023
Common Equity Tier 1 capital (CET1) 1,488.5 1,444.9 1,367.7
Tier 1 capital 1,589.8 1,546.2 1,508.9
Share capital and reserves 2,017.0 1,664.1 1,645.0
Risk-weighted assets (IFRS) 10,376.3 9,975.3 9,479.1
Common Equity Tier 1 capital ratio 14.4% 14.5% 14.4%
Tier 1 capital ratio 15.3% 15.5% 15.9%
Aggregate capital ratio 19.4% 16.7% 17.4%
% / IFRS 31.03.2024 31.12.2023 31.03.2023
Liquidity coverage ratio (LCR) 164% 147% 211%
Net stable funding ratio (NSFR) 118% 114% 118%
About OLB
OLB is a profitable and growing universal bank for private and corporate
customers in Germany and neighbouring European countries. Under its OLB Bank
and Bankhaus Neelmeyer brands, OLB advises its about 665.000 customers in
person and via digital channels in its Private & Business Customers and
Corporates & Diversified Lending segments. The Bank has about EUR 26 bn of
total assets.
Feel free to visit us at www.olb.de and www.neelmeyer.de as well as on
Facebook, Instagram and YouTube.
Contacts: Your contact persons:
Oldenburgische Landesbank AG Sandra Büschken
Investor Relations Phone +49 (0)69 756193-36
Theodor-Heuss-Allee 108 sandra.bueschken@olb.de
60486 Frankfurt am Main / Germany
Matthias Obst
investor.relations@olb.de Phone +49 (0) 69 756193-44
matthias.obst@olb.de
Oldenburgische Landesbank AG Britta Silchmüller
Corporate Communications Phone +49 (0)441 221-1213
Stau 15/17 britta.silchmueller@olb.de
26122 Oldenburg
Timo Cyriacks
(1)ccir@olb.de Phone +49 (0)441 221-1781
timo.cyriacks@olb.de
1. mailto:ccir@olb.de
Disclaimer
This information does not contain any offer to acquire or subscribe the
securities mentioned therein, nor should it be construed as an invitation to
do so. The opinions expressed herein reflect our current assessment, which
is subject to change even without prior notification. This information
cannot be regarded as a substitute for individual advice tailored to the
investor's respective situation and investment objectives.
The information contained in this press release includes financial and
similar information which is neither audited nor finally reviewed and should
be considered preliminary and subject to change.
Likewise, this document does not, either in whole or in part, constitute a
sales prospectus or any other stock exchange prospectus. The information
contained in this document therefore merely provides an overview and should
not form the basis of an investor's potential decision to purchase or sell
the securities.
The information and assessments (collectively referred to as "information")
are intended solely for clients with their registered office in the Federal
Republic of Germany. In particular, this information is not addressed to US
citizens or US residents and US persons or Australian, Canadian, British or
Japanese citizens or residents and must not be distributed to such persons
or introduced into or disseminated in such countries. This document
including the information contained therein may be used abroad only in
accordance with the relevant applicable law. Any persons receiving this
information shall be obliged to familiarise themselves with and observe the
legal provisions applicable in their respective country.
This document has been prepared and published by Oldenburgische Landesbank
AG, Oldenburg. The information has been carefully researched and is based on
sources deemed to be reliable by Oldenburgische Landesbank AG. However, the
information may no longer be up-to-date and may be obsolete by the time you
receive this document. Furthermore, it cannot be ensured that the
information is correct and complete. Oldenburgische Landesbank AG therefore
assumes no liability for the contents of the information.
In addition, this document in connection with Oldenburgische Landesbank AG
contains various forward-looking statements and information based on the
management's beliefs and on assumptions and information currently available
to the management. Considering the known and unknown risks associated with
the business of Oldenburgische Landesbank AG as well as uncertainties and
other factors, the future results, performances and outcomes may differ from
those deduced from such forward-looking or historical statements. The
forward-looking statements speak only as of the date of this document.
Oldenburgische Landesbank AG expressly disclaims any obligation or
undertaking to release any updates or revisions to any forward-looking
statements to reflect any change in its expectations with regard thereto or
any changes in events, conditions or circumstances on which any
forward-looking statements are based. Any persons receiving this document
should not give undue influence to such historical statements and should not
rely on such forward-looking statements.
This document also contains certain financial measures that are not
recognized under IFRS or German GAAP ("HGB"). These alternative performance
measures are presented because Oldenburgische Landesbank AG believes that
they and similar measures are widely used in the markets in which it
operates as a means of evaluating its operating performance and financing
structure. They may not be comparable to other similarly titled measures of
other companies and are not measurements under IFRS, HGB or other generally
accepted accounting principles.
All figures based on IFRS unless otherwise stated
(1) Based on average IFRS shareholders' equity deducted by accrued dividends
and excluding expenses related to Degussa Bank acquisition (EUR1.5m in Q1
2023, EUR3.2m in Q1 2024)
(2) Excluding expenses related to Degussa Bank acquisition (EUR1.5m in Q1
2023, EUR3.2m in Q1 2024)
(3) Based on regulatory capital adjusted by accrued retention
(4) Rounding differences may occur
(5) Based on average IFRS shareholders' equity deducted by accrued dividends
and excluding expenses related to Degussa Bank acquisition (EUR1.5m in Q1
2023, EUR3.2m in Q1 2024)
(6) Based on German GAAP (HGB)
(7) Based on regulatory capital adjusted by accrued retention
---------------------------------------------------------------------------
22.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
Language: English
Company: Oldenburgische Landesbank AG
Stau 15-17
26122 Oldenburg
Germany
Phone: 0441 - 221 - 0
E-mail: olb@olb.de
Internet: www.olb.de
EQS News ID: 1908065
End of News EQS News Service
---------------------------------------------------------------------------
1908065 22.05.2024 CET/CEST
