Helaba Landesbank Hessen-Thüringen has achieved a new record high in earnings for the third consecutive year. Pre-tax profit increased by 6.3 percent to 767 million euros (previous year: 722 million euros). The significant growth in commission surplus and relief in risk provisions for real estate business were key contributors to this success.
„We have now achieved our best result for the third time in a row. All business segments have made a positive contribution to earnings. The significant increase in revenue from commissions is very encouraging. Our strategy of focusing more on non-interest-bearing business has proven successful. In addition, we were able to reduce risk provisions for real estate business. We continue to invest in our future, our IT infrastructure, AI projects, and other growth initiatives,“ said Thomas Groß, CEO of Helaba.
Helaba has further expanded its operating income. Commission surplus increased significantly by 7.9 percent to 578 million euros (previous year: 536 million euros). In non-interest-bearing business, the result from financial investments held as real estate showed pleasing growth at 289 million euros (previous year: 207 million euros), partly due to the elimination of depreciations that had burdened the previous year’s results.The significant increase in earnings resulted, among other things, from revaluations of real estate holdings.The result from fair value measurement decreased due to negative valuation effects at96millioneuros(previousyear:207millioneuros).The net interest income decreased slightlyto1billion797millioneuros(1billion840millioneurosinthepreviousyear)inlightofmonetarydevelopments.
Helaba continues its investment in growth.As aresult,theadministrativeexpensesin2024amountedto1billion798millioneurosoverthe previousyear(previousyear:1billion711millioneuros).Theincreaseisprimarilyduetothe modernizationoftheITinfrastructureandinvestmentingrowthinitiatives.Theincreased personnel expenses resultedfromfurtherstaffexpansionandtherecentcollective bargaining agreement.Ontheotherhand,theeliminationofbanklevieshadarelievingeffect.
The net allocationtodoubtfulaccountsdecreasedby21percentto-351millioneuros(previousyear:-448millioneuros).Thedeclineinprovisionformationreflectsastabilizationoftherealestatemarket,inparticularinthecommercialsegments.Atthesametime,riskprovisionsincreasedinthecorporate&marketssegmentduetosomeindividualcaseswithcompanyspecificchallenges.
Thomas Groß sees Helaba well preparedforthefuture:“Duetoongoinggeopoliticalconflicts,theincreaseduncertaintycausedbythenewUSgovernment,andtheweekeconomicperformanceofthegerman economy,timesremainchallenging.However,thisisoffsetbythedecreaseinflationandmultipleadjustmentsofinterestratesbyECB.Furthermore,wewitnessastabilizationoftherealestatemarketespeciallyinthecommercialsegmentswhichareimportant tous.Wearewellpositionedfor2025withourdiversifiedbusinessmodelfocusedonlong-term sustainablegrowth,anddespiteenormousconjunctionalandgeopoliticalchallenges,wepredictapretaxprofitonlyslightlybelowlastyearslevel.Inthemidterm,wemaintainourforecastofsustainableearningsoverone billion euro.“
Contact:
Rolf Benders
Communication and Marketing
Helaba
Landesbank Hessen-Thüringen
Girozentrale
MAIN TOWER
Neue Mainzer Strasse52-58
60311 Frankfurt
Tel.:069/9132-2877
email: rolf.benders@helaba.de
Website:www.helabade